New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-10

POLICY PRESUMED TO BE sETTLED-NO
PrsH OF GOLD TO INDIA EXPECTED
WHEAT PRODUCERS ON EVEN TERMS
Washington Aug Accommodating upon the
a,sns+ch regarding the report of the Committee
m the Indian Currency placing India the
go,s basis Mr. Roberts Director of the Mint.
said today
The report does little more than reaf1rm
.o6 declare the permanency If the policy
a6opted in 1898. when the minis were closed
- the free coinage Of silver The minis
closed originally because the decline in silver
had become so great as 70 embarrass the Indian
Government which received It's revenues in
silver and had 70 make large share OF its dis
ru-sAnents IN gold The Government makes its
-en,ittances 70 London by selling bills Of
change on the London market these being
bought by people who desire to make remit
.a-ces 20 India Before the minis We're closed
,hA public could either buy these Council bills
or send silver but by closing the minis the Gov
eminent hoped to force the purchase Of the
hills a. higher rate Hard times followed in
India attributed by those who criticised the
Government 70 the closing ~ the minis,
bur attributed by the Government 10 the
famine and other causes There was con-
siderable agitation in favor Of reopening
the uints and the business world was
IN ~ little uncertainty about the future.
= was considered highly desirable that the Gov
e-rrAnt's future policy should be definitely as
sured and accordingly something over a year
ago committee Of eleven appointed by the
Indian Office 70 investigate the whole subject
-nA committee has published two volumes Of
testimony and now gives its own conclusions
REPORT OF THE COMMITTEES.
" Is unanimous in finding that the minis
should not be reopened 10 silver. The commit
Tee saws:
Even apart from considerations affecting the
Government Of India. II is not in the interest of
India that her foreign commerce. over 81 per
cent q which Is with gold standard countries.
should be tempered with by the restoration OF
silver nonometallsm-
The committee pronounces the efforts Of the
Government 70 hold the value Of the rupee at
16 pence a success and holds the sale Of Council
bills az that figure TO he proof that India already
has the gold standard. It hesitstes. however,
- recommend the final step. namely that the
Indian Government shall give gold in exchange
for the silver rupees current II says that in its
opinion II is not necessary for the Government
70 bind itself 70 do this. II would impose on the
Government a liability to find gold at a mo-
rnents notice 70 an amount which cannot be
defined beforehand. and the liability is one
This has been the puzzling question IN the Ind
ian situation The Government has no gold
reserve nor has It the means TO obtain stock
q gold al once. II could only be done by the
issue Of bonds or in instruments through taxa
ton. and Il is not practicable 10 increase the
taxes Of India 10 am considerable degree.
COMPARISON TO AMERICA
The committee concludes that the requirement
OF reserve may be left 10 the future. and that
the present silver currency OF India may be
maintained at fixed value 70 gold by supplying
such quantities of gold as are needed for for
eign rernfttances That it says, II regards as
the principal use Of gold reserve. In fact, that
IS precisely the service performed by the gold
reserve Of the United States. The Indian
committee refers TO the example Of the
United States II is recommended that the
Indian nints be opened TO the unrestricted
coinage Of gold and that the British sovereign
BE- made a legal tender upon the theory that
gold will flow in as more money is needed.
and that eventually a considerable share Of the
currency will thus come 10 be Of gold. The sig
rihcance OF the report is IN the determination
not 70 reopen the minis 10 silver. The policy Of
India may now be presumed 70 be settled"
Being asked II there was any reason 10 expect
such a movement OF gold TO India might
disturb the money markets IN the worlds CEN
tres Mr.. Roberts replied
There is not India cannot draw any more
than she can pay for and she is not rich enough.
OF likely to develop exports fast enough, 10
make her demands serious. She has taken
100000 or $4,000 900 worth Of Australian
gold this year. She cannot possibly take sum
that will exceed the increase Of this years gold
production over last"
Does the final adoption Of the gold stand
srd bv India hive any bearing upon foreign
trader" Ia
EFFECT OF COMMITTEES ACTION.
IT puts the wheat producers OF the two coun-
tries on a common monetary level" replied Mr..
Roberts and dispoees Of the old argument that
the Indian farmer has an advantage over the
American farmer because he receives his pay
N a falling currency Whatever intricacies there
once were in the subject have been cleared UP.
for the Indian farmer, like the American
farmer Is now paid by the gold standard The
alleged advantage was an illusory one. for he
only held N while the currency continued 70
fall and then only he could work il of on
a. 2 former value Furthermore. in the nature
- things currency must stop falling some
time vhen II becomes worthless, IL not sooner.
This COMMITTEES agrees with the Indian Govern
,1snt that the interests Of that country a
whole demanded that the, depreciation % It's
money should cease. and that it's financial sys
ter should be linked 70 that Of the other i'm
parrant nations Of the world
TIE PJ4GTE MOVING WESTWARD