Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1913-01-03
india COLD CRAZY
Precious Metal In Millions I'M
ported by That Country.
MELTED INTO ORNAMENTS.
Chains Worth 1900 Rupees Are Often
Worn-Even Women of the Lower
Glasses Have Mania For Coin Neck
laces of Value.


To the average American banker the
traditional absorption of the precious
metals by the east has had for long
time only an academic or intellectual
interest, writes James s. III. UmSted i'll
Financial America. But the movement
in the last few years has reached such
significance with relation to the guess
ton Of the gold supply that it begins
to touch the practical side of our bank
ing community. The financial world
of London, of course, is the most di-
rectly concerned, but our own relations
with Europe are now so close and to a
large extent so reciprocal that the sub
ject is really one of high Importance
to domestic financiers and merchants.
This is especially so because of the
peculiarly exposed financial situation
here, due to the absence of scientific
currency system and the large amount
Of paper money which, in the last anal
ysis, is left in the monetary organism
Of the United States without adequate
protection through gold reserves. Such
gold as we have warehoused In the fed
eral treasury against gold certificates
payable on demand is admitted by the
best informed authorities TO be robbed
Of much of its potency OF protection
in case of panic or a credit famine
such rs developed in the winter OF
1O07. g nv itc vary uocifiOO
The mania of the Indian and allied
peoples for ornamentation has been
noted from time immemorial. In the
eighties Professor Adolph Soetbeer in
his great standard work, "Materielen,"
made public some interesting letters
which he had received from private,
friends in India, which give a very
picturesque account Of the habits Of
the eastern nations. One writer said:
''Gold coins are not money, and the
sovereigns and the still rarer mohurs
are bought and sold as bullion and
melted for conversion into articles OF
ornament. The extent to which this
is done is incredible. Gold chains
worth 1000 rupees are often worn.
Women even of the lower classes are
seen with ornaments consisting of SOW
ereigns or twenty and ten franc pieces.
When asked one Of these women why
she carried these gold pieces about her
neck she asked me why I bought ~
watch and a piano. A native trader
told me that the capital which he had
lying idle in tho form of gold orna-
ments would bring him IL rupees per
month. When proposed to him that
he should put this sum into the saw
ings bank he rejected the propositions
with the answer that he would have
no more friends, as he would no longer
look neat and NICE" :
OF course there has been in recent
years some modification OF these PEI
culiar habits Of the Indian natives~
Nevertheless comparatively insig-
nificant portion Of the gold coins im~
ported into India passes into circula-r
ton. In the last annual report Of Re-
w. Gillian, comptroller general and
head commissioner of paper currency
for India, it is shown that the receipts
Of gold at postofiices in the fiscal year
ended March 81, 1907, amounted to-,
f553, 900, rose to G1,35SO0O in 1908 and
fell to f63SOOO in 1911. The receipts,
Of the railways were f1,045, 900 in 1909
and only $4,000 in 1911. Mr.. Gillan'
adds this comment: "The inference app
pears to be unfavorable. If sovereigns
have established themselves In the cur
rency the effect should be cumulative.
Year after year a certain amount Of
gold has been passed out into clrcula-
ton. If it stayed there we should ex~i
pect progression in the figures, but OF,
such progression there is no trace. 1T
then it is the case that it is not as 10
medium Of exchange that sovereigns'
have proved their superiority or estab+
lished themselves the question is what
becomes Of them. The alternatives are
melting and boarding"
In the report of the United State5l
mint for 1898 there is compilation of
the net imports of gold into British
India. together with the amount which
was received into the mint. The latter
was u small part of the total.
The remarkable magnitude OF ths
movement of gold into India in recent
years may be indicated from compila-
tons Of the last twenty years. The
writer has reduced the rupee to United
States currency on the basis Of 0.32433c
per rupee. Dividing the last two dec
AIDES into periods Of five fiscal years
each, it will be found that the net inn
ports of gold into British India have
been as follows: From 1891 to 1885,
both years inclusive, $2,933,34S; 1896
1900, SS3,250, 1884; 1901-0J, $1S2,947, 800;
1906-1O, $500, 4S0,397. In the fiscal year
ended March 81, 1911, the net gold i'm.
ports were SIT ,760,O63, compared with
S7O,279, 1O3 in 1910. The net imports
for 1912 were approximately $133,000,-
900. At the rate of imports Of the last
three years it will be seen that the alb.
sorption has been at an average which
would make the amount for the five
years from 1911 TO 1915 about Says.
100000, compared with $500, 4S0,397 in
tha five wears ended with 1910.