Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1900-07-05
fNDIA'SFREE COINAGE
ABOLISHED IN FAVOR OF THE
GOLD STANDARD.
Policy Carried Out Under Unfavorable
Conditions, But the Country Is swsraped
with Gold and Currency Has Increased
Effect of the Change Beneficial

SOuSul GeneTdl ". r. fdlIlSOu, WIN
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 1893 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 fuctuated greatly, al
though It has been the policy OF the
government to establish its fixed value
1t Is. I'D. (32 cents), which 1t 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 a rupee at lower sterling
value. 1t was further urged that a
rupee appreciated to Is. I'D. 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-
tides. the cotton spinning and weav-
Ing industry has been In a 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:
ss a%PS5ts E 81, oG T0ssl ssSSs 80
isss-isoo -. ssi.SSSSSS ssa.sSS.SSS St.sSc.OSS
1t was in its 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 a
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-
Quired for the famine districts Of In
dia.
But the statistics for opium do not
support the allegation that the en-
lhancement 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
September to make gold 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. It was
contended in making the sovereign
legal tender. gold would be boarded
and would fail to reach the govern
ment repositories. so that its gradual
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-
tng to reach the government depos-
tories. they have been nearly
swamped with 1t, and the dificulty
has arisen from its plethora-not from
its scarcity.
The amount of currency reserve on
April 1, 1899. was about 10000, 900,
and on March z. 1900. It was about
S35. 100000. The amount that had ac-
cumulated in London was about
$<.5oo.o0o. making an aggregate of
about $39, SOC. 900.
In country like India, where It has
been the custom Of the native popu-
lation to hoard silver, It will take
aonger 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 a gold currency
country, as the exchange value Of the
rupee Is now fixed at the rate of fifteen
rupees to the sovereign (s4.S6), or, In
other words. rupees are interchange
able at that rate at the government de-
positories, and, with normal condi-
tons of trade. that rate will probably
be maintained.
India, which has been such a vast
reservoir for silver, now being out of
the list Of silver standard countries,
must have an important influence in
deciding the fiscal policy of other
countries, for her absorption OF such
ceased. though the rupee will continue
to be the currency for the smaller
transactions. its exchange value being
fixed by the government.