New-York tribune., 1899-07-24

-, hsen driven out Of the country. A revival
:, t,rvanisrn next year, with a reversal OF the
.o,di.ions Of exchange prevailing sinre Presi-
snr, McKinley's election. may send gold out OF
,r,erica and enable the Indian Treasury TO
.ocumulate a sufficient reserve for gold cur
r.ncv and standard. There will be no gold loan
:, O0OO0OO0 when London is not prepared to
,rovide the bullion. The Indian officials will
-, themselves in right attitude toward the
.o,s standard. and bide their time. II there be
~ revival Of the silver movement in America
1t wear large stock Of gold may be drawn
- and sound basis of exchange for the rupee
.,rcplation be established in India Silver
s,ance in America will tend to hasten the con-
ssumation of single gold standard in India
,es is an important fact not mentioned In the
.,rmittee's report. Americans ought not to
forget it,
IN FAVOR OF THE EXISTING RATE
The majority OF the committee report in favor
II maintaining the existing rate of sixteen
,spce between the rupee and the sovereign.
~hey prefer to leave the silver coinage intrinsi-
,ary worth less than one-half Of its nominal
,alue as token money. They propose to accept
,hs analogy Of France and to allow the rupee
% remain like the five franc piece. legal tender
=, any amount after India has been put on
,he gold basis They will neither limit the
amount for which rupees can be rendered in
discharge OF debt. will they impose any
legal obligation on the Government Of India TO
rive gold for rupees except at its own discre-
ion. They do not consider complete converti-
bul,y as it is known in England to be necessary
., India where gold will not circulate among
the masses Of the population; but they recon-
mend the example Of France and the United
states where gold is the standard de facto, il
not de lure. and where an enormous mass of
silver coins is maintained at par with gold. The
committee virtually applies the French none
tary system 20 India. and does not believe that
the boarding Of sold will follow the introduc-
ton OF a gold currency which Will rarely he
seen by the peasantry and only be used in
large business transactions.
The governing class in India have been com
PEELED during recent years 10 regard the cur
rency question from a single point Of view
that Of exchange in the sale Of Council drafts
IN London. They have been constantly borrow
ing money in England. and have not ventured
10 allow the exchange value Of the rupee to fall
10 the silver basis as 1t would have done IL the
rnts had been reOpened 70 free coinage Of sill
YER They have succeeded in maintang artl-
fcialy the scarcity Nalue or the rupee, ana
have recommended a gold standard because
four-hfths Of Indas foreign trade is with gold
countries. The committee OF experts follows
them. and proposes that a gold reserve shall
be accumulated for the purpose of regulating
exchange. The principal use Of this reserve will
consist in its being available for foreign remit
tances whenever exchange falls below specie
point. The experts like the Indian officials, can
find nothing in the currency problem but
bankers question OF exchange. From this point
% view they have recommended theoretically a
gold standard. a gold reserve and a gold cur
rency. but have condemned every practical
measure that has been proposed for carrying
cut these policies. London. with its pound
sterling, has become the clearing house Of the
world. and must always stand for the single
gold standard in India and everywhere else; but
st has no idea Of providing the gold required for
currency reform in that vast empire when its
own financial interests would be embarrassed
thereby. Indian financiers have been afloat for
some time. They can head in the direction Of
a gold standard and follow the drift Of events;
and possibly the American silver fanatics will
do something to help them out by sending gold
ovt Of the country, l. N F.