The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-15

people who think below the surface
of things when they learned that 1,O00,-
600 Of those 10000 were under arms
in the far East. Whyi TO counteraet
the revolutionary propaganda manipu-
lated by Germany, chiefly from headquar-
tiers in San Francisco. Always India has
been hotbed of factions and revolutions.
Always India has been "a sink" of pre-
cious metals, demanding payment for ex-
ports in gold or silver, at once withdraw
ing the coin from circulation, either to
hide and hoard it or to melt and beat up
the coin into bangles and jewels and
ornaments.
India Will Not Use Paper.
And now tine war brought conditions
TO India that literally set L match to gum
powder. The general population of India
will not use paper currency, but lndias
exports are essential to the winning of the
war. India has jute and hemp and wheat,
and India has cheap labor.
Ordinarily India buys about 800 ,OO0, 600
more than she sells, but lack of tonnage
has cut off her imports and increased
prices have swollen her exports. The
Allies owed India 1860, 000,000 for war
purchases, and India would not accept
payment except in coin. How easy for
enemy propaganda 10 fan fractional I'M
rest to revolution if there had been any
delay in the payment of that CON, 1t
was the place where the changers of
money might have become the dictators
of second Russia, but where was that
great mass of coin coming FRONT
Only one source of silver had been left
undrained in the whole world-those silver
dollars piled up dead and unused in the
United States Treasury. Even before the
Pittman act permitted the melting and
expectation of these, private purchases
had sent the price of silver up so per
cent. For the ten years preceding 1908
India had absorbed and sunk" or lost
10 circulation Sl35, 900 900 of gold-more
than quarter of the worlds yearly pro-
duction of gold.
For the ten years after 1908, that is to
1918, India had absorbed and sunk"
$40, 100000 of gold, or more than the
worlds production of gold for one year.
By 1917 the dangers TO shipping by
way of London had become so great that
coin was going TO India by way of New
York and San Francisco, and the brokers
Of London were powerless to stem the
flow. Russia and China also were buyers
of silver here. The dominance of the
London brokers in precious metals had
passed forever. One single purchase of
silver to the extent of 100000 was
supposed to have gone to India by way
of Canada, and what had begun as a
trickle became food
Averted Trouble in the East.
By the end of 1917 India was drawing
three-fourths Of all the silver produced in
the world. Silver had to be supplied to
India to avert financial panic and per-
haps revolution. The world had pro-
duced about $4,000, 900 ounces of silver
and India needed Immediately SOC, OOO,-
600 worth and later $3.50, OOO, 900 more,
SO the United States Treasury dollars
were melted and exported.
But before that a curious situation had
arisen as to the rupee. The premium was
SO great on metal that the silver in the
rupee was worth more than the face value
Of the minted rupee, SO rupees were being
melted up and going out of circulation.
A law was passed in India making it q
penal offence to melt or export coin.
Silver cannot now be shipped to India
except by purchase of the Government.
But this is not the whole story Of the
adventures of silver in the war. We are
now paying France our army disburse-
ments in silver. With India requiring
$175,000,O0O more in silver than is pro-
duced in year and Francs taking pay
ment for our army purchases in silver, it
is not surprising that silver has doubled
in price.