Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-08-10
INDIAN CURRENCY
ON A GOLD BASIS
Director OF the Mint Gives His
Views on the Report
POLICY OF 1893 AFFIRMED.


Washington. Aug. Recommending
upon the Associated Press cable Of the
comment on the Indian currency. place
ms India on the gold basis Director OF
the Mint Roberts uld today
The report docs little more than &C..
affirm ANA declare the permanently uf
the policy adopted Boo 1885, when the
mints were closed tD tha free colulrc
OF silver The minis were closed otlrI-
nhlly because THE decline boo silver had
become su great uH Geo ombtIIlsH The
indian government which received Ita
revenue in silver and had To- make "a
large shnr" uf ltH disbursements Boo gold.
The government makes ltH remit
tances 90 London hy selling bills uf exc
change on the London market These
are bought by people who desire Co
make the rHWittUncgs Co. india. before
the miuts we're closed the public could
either buy these council bills ur sard
silver but hN closing the WIrts the
government hoped TO force the put
chase or The bills at higher rate.
Hand times followed in India 1ttribu-
ted by those who oriticiaD the EuN
eminent Go the closing OF the m.uir.
but attributed by the government tu
the famine and other causes.
There was considerable agitation in
favor uf roUuvnlug the mlnta and the
businesH world was boo no little unCHr-
tulnty about the future. 10 was yuu.
nldercd highly desirable that the Euy-
crnmcutE future policy should be- dvn-
nitcly assured and accordingly some.
thing over a year ugu. "a committee OF
eleven was appointed by the Indian
officers in London 60 investigate the
whole subject. The committee BIAS
published two volumes OF testimony.
ana now gives IT, own conclusions. 10
iH unanimous IN finding that the miuts
should not be- rc0prncd 10 silver The
committee says
Even apart from considerations af-
fcuting the government OF India. 10 be-
not in the interest OF India that her
foreign commerce over 30 per cent "
which IL with gold standard Countries
should be tempered with by the rra-
turntiOn % silver monnmrtnlism.
THE committee pruuuuuCes the Cf-
forts OF the government TO hold tho
value OF the rupee at 10 pence SUE
cess. ana holds the sale uf uUnHulH at
that nguru 10 De a proof that India
already has the gold standard.
1T hefitutCH, however Go recommend
the final step, viz; That the Indian
government shall give gold IN exc
change Tor the silver rupgrs current,
They say that In their opinion 10 Us
not necessary for the government 10
bind itself 10 do this. Il would impose
ON the government liability To- fnd
gold at a moments notice to an
amount which cannot be defined be-
f1rehund, and the liability II one which
in our opinion ought not To hc ac-
oeptcd.
This has been the puzzlinF question
IN the Indian situation. The govern
mcnt has no gold reserve. nor has Il
the means 90 obtain a stock uf gold
at once II could only be done by the
issue Of bonds or Ia lnHtalmrntH
through taxation, and u 10 not pract-
cable to Increase taxes VI India 20 any
considerable degree The committee
concludes that tho uqulrrmUut %. a
reserve may be- lrft 90 the future. ana
that the present silver currency Of
India may De maintained at u fixed
value 10 gold by applying such quaint
ties OF gold az are needed Tor foreign
remittuuces. That, they say they rec
gard as the principal use of natural
reserve
In fact, that is precisely the service
performed by the gold reserve OF the
United States. The Indian committee
refers 90 the example" ~ the United
States. Il IL recommended that the lu-
dian mlnts be opened 60 the unrc-
strlgtcd coinage 90 gold, and that the
British sovereign may be- made legal
tender upon the theory that gold will
How Ia uH more money Dr. needed, and
that eventually "a considerable share pf
the currency Will thus come 90 hp OF
sold. The significance OF the report
Is In the determination not 90 open the
minis. The policy OF India may now
be presumed To be settled"
Asked n there was any reason Co exc
pect such a movement ut gold Co India
as might disturb money markets lu the
all d.. d
There IA not india cannot draw any
more than she can pay Tor. and shr h
not rich enough on likely 90 develop
exports fast enough 90 make her dee
mands serious. She has taken 81 900 900
or SlO,0O0ODv worth uf Australian gold
this year She cannot possibly take
a sum that Will absorb the Increase OF
this years gold production over last"
Does the final adoption NJ the gold
standard by India have any bearing
upon our foreign trldr9'
1t puts the wealth producers NJ the
two countries on q common level" Tee
piled Mr. Roberts. "aud dlHpoasF uf the
old argument that the Indian farmer
has an advantage over the American
farmer because he receives his pay iu
u falling currency. Whatever lntrlol-
Giles there once were In the subject have
been cleared up, Tor the Indian farmer.
like the American farmer ~ now paid
ny Nllh NNIN NNNNNNIN# ANN WlfktN aus
vantage was an llluEDry one for he only
held the currency would continue 20 fan
ana then only as be- could work 10 on
on some uniformed ana helpless fellow
Cuuutrymuu ut u former value, Fur
hprmorU, lu the nature NJ things "a cur
runcy must stop falling some time when
II bouumpH worthless if not Fuuurr
This committee agrees with the Indian
government that The Interests OF that
country uN % whole demand that the de-
probation uf its money should cease
and that H. financial system should hH
linked TO that of the other important
nntluuH OF the world"