Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1899-08-17
Reports Of the Parliamentary
Committee Which Inves-
tigated Currency.
OPPOSE COINAGE OF SILVER,
Would Drive Capital From India-wiih.
out an international Agreement 1t
Would Ronew an Instability of tx
changes-Four-Eifths Of India
Trade with Gold Countries.

Washington, August 10.-ln diplomatic
quarters copies Of the report just
presented to the House Of Par
lament by the committee which
have been received. 1t is on this report
that Lord George Hamilton, secretary of
state for India, has based his announce
mcnt within the last few days, that India
would go to the gold standard. This an
nouncemcnt has attracted much attention
in the United States and the conclusions
are moreover, to some extent connected
with the negotiations carried on some
months ago by Senator Vocott, and
others, representing this country as 10 in
tcrnational bimetalism. This commission
was made up of the most influential
statesmen and financicrs of England, and
the testimony before them was given by
such eminent authorities as Lord Roths-
child, head of the great firm of Roths-
child; Lord Alderman, former governor
of the Bank of England; the Earl of
Northbrook. former governor general of
India; Sir Alexander Mackenzie, licuten-
ant governor of Bengal Prof. Marshall of
the University of Cambridge, and indeed
practically all of the students and schol-
ars of economic questions in Great liri-
tain. The session were private and the
testimony, as well as the final report has
now been made public for the first time.
The report first sets forth the origin and
present conditions of the monetary system
of india and then says
We proceed to consider the question
whether in the light Of the six years eX-
pcricnce gained sine 1893, it is desirable to
reverse the policy initiated in that year,
and to open the Indian minis to the un-
restricted coinage of silver. In our opn-
ion any measures for gradual rc-opeming
would he SO fully and Immediately dis
counted as to defeat the precise objects
for which they are suggested. II is OH
vious. moreover, that the certain prospect
of heavy fall in coinage would at once
drive capital from India
The policy of opening the minis at some
future date to silver. stands or different
footing when urged by those who look for
ward to an international agreement with
in limited period. Such persons aim
directly at a stable exchange between In
dia and the United Kingdom and advocate
delay only in order that an international
agreement may be reached
with regard to this anticipation, we
confne ourselves here to stating that the
negotiations of 1897 with France and the
United States of America having proved
fruitless, no fresh proposals so far as We
are aware. have been. or are being made
by any of the governments concerned.
I'VE come next to the suggestion that
the present system Of closed minis hondi-
caps India in her industrial ComDotiticu
with countries on "A silver standard This
aspect of the question was considered by
Lord Herschell's committee, who express
ed the opinion that even if We assume the
argument to a stimulus or check to pro-
duction to be sound the effect of each
successive fall in exchange must I've transit
tory and could b. continued until cir0um-
stances have brought about the inevitable
adjustment.
In this opinion. we concur and evidence
has been laid before us when shows that
ices and wages have risen in China since
silvoc' has fallen in price and the local cop
rer currency has appreciated in terms Of
silver.
To reopen the Indian minis to silver
without an international a2ren meat would
necessarily result accordingly to all past
experience. in renewing the instability Of
exchanges betw cen India and gold stand
ard countries. 1t Is generally recogniZed
hat huctuation Of exchange constitute'8n
obst acl" to international, trade, the true
interests of which are to be sought in a
stable monetary power Of exchange.
The report then discusses the principle
OF a gold standard and says
AT the present time the practical al
terrativc to silver monometallSm Is a
gold standard, that is to say gold as the
Measure of value in India either with a
gold currency or a gold reserve.
Four-hfths of the foreign trade of In
dia Is with gold standard countries and
for this reason it Is desirable that India
should have the same measure Of Na.ue
as those countries. The change to gold
has sis has hcon presented to us by Protcs-
sor Marshall of Cambridge as like a
movement toward bringing the railway
gauge on the side branches of the worlds
railways into unison with the main lines.
"A further and certainly not less I'M
! portant consideration for country Ike
| iG a Ct gold standard
| is the simplest and most effective means
of attracting capital"
! In conclusion the report states: For
| these reasons we conclude that steps
should be taken to avoid all possibility CT
doubt as to the determination not to re-
vert to a silver standard but to proceed
with measures for the effective establish
l n1.int IL. l..A.I. M .I.l'