The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1900-07-13
fNDIA'SFREE COINAGE
ABOLISHED IN FAVOR OF THE
GOLD STANDARD.
Policy Carried Out Under Unfavornble
Conditions, But the Country Is Swarnped
with Gold and Currency Has Increased

Consul General r. F. Pattison, who
is at Calcutta, has reported as follows
to the state department regarding the
course taken by the government Of In
dia in the past seven years on the
question of the free coinage of silver:
In 1898 the minis of India, that had
previously been open to the free coin
age of silver. were closed, except to
such coinage as was required by the
government to supply the currency
for the business of the country; and
since that time the exchange value of
the rupee has fluctuated greatly, al
though it has been the policy of the
government to establish its fixed value
at Is. I'D. (32 cents), which it has now
practically accomplished.
Strong objections were made to ster-
eotyping the rupee at is. 4d., on the
ground that the normal value of trade
required rupee at lower sterling
value. 1t was further urged that a
rupee appreciated to Is. 4d. would
check exports, and especially would
exercise an evil influence on the opium
trade with CHINA silver currency
country.
The policy of the government has
been carried out under the most ad-
verse conditions, the plague covering
many districts, and the failure of rains
last year causing a distressing and
disastrous famine in large areas; be-
sides, the cotton spinning and weav-
ing industry has been in more or less
critical condition the past year. In
spite of these conditions, the total
value of trade during the ten months
ending December 81, compared with
preceding years, has been, in round
numbers:
Imports. Exports. Total trade:
SSs-1Sss -. 100000 325OOo,0Oo 547OOO,Ooo
899-19OO -. Psi. 100000 32i,5O0,OOO 575,5Oo.Ooo
1t was in it's effect on the export
trade that the enhancement OF the
value of the rupee was chiefly dreaded;
but the figures do not justify the fears
expressed, although there has been
serious decline in the export of wheat
and of rice, owing-as regards the lat
ter especially, which would otherwise
have been exported-to its being re-
CURED for the famine districts of In
dia.
But the statistics for opium do not
support the allegation that the en-
hancement of the rupee and the fall in
the exchange of China on India would
check the opium trade. The demand
has been brisker, and the average price
higher the past year.
The measure passed the 18th of last
Septemb Der to make gold a legal tender
in India was the outcome of the In
dian currency committees report, but
the government was subjected to con-
siderable pressure to defer action
when the report appeared. 1t was
contended in making the sovereign
legal tender, gold would be boarded
and would fail to reach the govern
accumulation would be arrested, and
the government would be driven into
borrowing for its stock of gold; but
the measure was passed, and the re-
suit is known. Instead of gold ceas-
ing to reach the government depos-
tories, they have been nearly
swamped with it, and the difficulty
has arisen from its plethora-not from
its scarcity.
The amount Of currency reserve on
April 1, 1899, was about $4,000, 900,
and on March z, 1900, 1t was about
$35, 100000. The amount that had ac-
cumulated in London was about !
81, 100000, making an aggregate of
about 500 100000.
In a country like India, where 1t has |
been the custom of the native popu-
lation to hoard silver, it will take |
longer to adjust itself to a gold stand
ard; but it will be seen that the gov
eminent is accommodating gold, and it
is gradually going into circulation,
now being legal tender.
BY the action OF the government,
India has become a gold standard, and
will gradually become gold currency
as the exchange value of the
rupee is now fixed at the rate of fifteen
rupees to the sovereign ($4.S6), or, in
other words, rupees are interchange
lble at that rate at the government de-
and, with normal condi-
ions of trade, that rate will probably
,e maintained.
India, which has been such a vast
for silver, now being out of
he list Of silver standard countries,
must have an important influence in
Ieciding the fiscal policy of other
for her absorption of such
eased, though the rupee will continue
o be the currency for the smaller
its exchange value being
xed by the government.