The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-13
OF GOLD
IMPORT TO INDIA
Wall Street Journal Believes
1t Will Prevent Gold Spec
ulation in West.
CHANGES IN FAR EAST
Imports Of Gold Increasing,
While Imports of Silver
Are Reduced.
CHANGES IN FAR EAST

A proposal OF much interest for the
entire financial world has just been
Drought under discussion by the gov
ernment OF British India. The idea is
not entirely new. but now seems on the
point OF receiving official sanction here
tofore lacking. It is. In substance, that
the Indian mints be thrown open to the
coinage Of gold. says tho Wall Street
Journal
To understand the slgniflcance Of this
proposal, It IS necessary to 20 back at
least to. the Indian currency reform Of
1888. when tho free coinage OF silver
INTO rupees was suspended and an EFFORT
was made to give to the rupee a fixed
gold parity The reform was consum-
mated in 1899 by the provision of a gold
Sta ndard reserve fund In London, against
wnich drafts could be sold at fixed
exchange for rupees. The system was
put to severe test In 1905 when nearly
half the gold standard fund was ab-
sorbed by an adverse movement OF ex-
change arising from the failure OF the
indian crops.
Gold Imports Grow.
Partly in consequence of this expert
ence, the argument was emphasized by
r: C. Harrison, then head commissioner
OF INC paper currency. that the safest
way to protect the Indian monetary sys-
tenn was to infuse into the circulation
a certain percentage Of gold coin II
was argued by Mr.. Harrison that such
a condition would afford means for
meeting a demand for gold for export
which would greatly strengthen the sys-
tenn in time Of stress. Inquiries In re-
gard to the use OF gold by bankers dur
ing the crop-moving. season showed that,
even In the form OF English sovereigns,
II was received with such growing favor
by Indian merchants and other clements
OF the population.
Tho - Ill
Gently called In these columns. that the
gold imports into India during the three
months ending with March last were
more than s6o.ooo.o 900. looks like rather
but It Is not probable that these figures
represent the average rate OF absorption
over an entire year. Tho official esti-
mate mate Of. OF Imports OF gold into British
81, 1911, was s9o,4s7 900. This in itself
is about one-ffth Of the worlds annual
production. which is estimated by the
7oa,soo The tendency for gold to dis
appear from sight In India Is one long
since noted by economists and the coun-
try is estimated to have absorbed 81. 200.-
This represents nearly one-tenth Of the
worlds production during that inter
val
1t Is not, certain whether the opening
OF the indian mints to the coinage OF
gold would increase the imports Of gold.
or whether some Of the gold which would
otherwise be boarded would not be con-
verted into coin. 1t is OF some signlh-
cance. as bearing out the contention OF
those who believe that India IS ripe for
a gold currency, that within the last
few years the Importation of gold has
been rising. Gradually, as the conscious
ness comes home TO the Indian that the
present silver currency Is q token coin
age, II seems to be diverting his prefer
ence for boarding from silver to gold.
Effect Of Programme.
It has always been ;he contention Of
those who discountenance alarmist views
In regard to the Increase OF the gold
supply that the new gold would spread
itself over a wider area instead Of being
superimposed upon the mass already
in use In the advanced civilized coun-
tries. Such a process Of wider distn-
button has been going on for twenty
years with the adoption of the gold
standard In Austria, Russia and Japan
and the accumulation Of gold reserves
IN Brazil, the Argentine and elsewhere.
II at the present moment the iufu-
sion Of gold into the active circulation
or the banking reserves OF British India
is taking place on large scale, II Is
not cause for alarm but rather for con-
gratula ton that 1t is preventing the un-.
due accumulation Of the yellow metal
In the banking reserves of the west