The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1900-07-12
TNDIA'S FREE COINAGE
ABOLISHED IN FAVOR OF THE
GOLD STANDARD.
Policy Carried Out Under Unfavorable
Conditions, But the Country Is Swaraped
with Gold and Currency Has Increased
Erect the Change Beneficial.

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 f1uctuated greatly, al
though it has been the policy of the
government to establish it's fixed value
at Is Id C32 cents), which it has now
practically accomplished.
Strong objections were made to ster-
eotyping the rupee at Is. 4d., the
ground that the normal value of trade
required a rupee at a lower sterling
value. 1t was further urged that a
rupee appreciated to Is. Id 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 adj
verse conditions, the plague covering
many districts, and the failure of rains
last year causing distressing and
disastrous
sides, 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:
SoS SSS SSS
sssoe O0
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
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-
! 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
! 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. 1t was
/ contended in making the sovereign
| legal tender, gold would be boarded
| and would fail to reach the govern
ment repositories, so that it's 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
suit is known. Instead of gold ceas-
ing to reach the government depos-
| ~
swamped with it, and the difficulty
has arisen from its p1ethora-not from
! its scarcity
The amount of currency reserve
April L, 1899, about SO ,O00, 900,
| and on March z 1900, it was about
$35, 600, 900. The amount that had ac-
| cumu1ated in London about
! $4,000 900, making an aggregate of
about s3e, 500, 900
| In country like India, where it 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 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 ($4S6), or, il
other words, rupees are interchange
able at that rate at the government de-
! positories, and, with normal condi-
| lions 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.
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