The Bozeman courier., 1927-12-16
india IS KEPT
POOR BY COLD
Billions of Dollars Worth
Secretly Hoarded or Used
for Ornaments.


worth OF gold and silver treasure is
sequestered in India in temple decora- !
tions, jeweled ornaments and bars of
bullion, together with the bangles,
anklc+s, necklaces and American
eagles" with which millions Of wOm-
en array themselves, according to a
new study of the legendary wealth of
the Indies" submitted to the United
States Department of Commerce.
Frozen wealth." the government
economists call this treasure, for II Is !
distributed and used in such forms |
that IL YIELDS not a penny of return to |
its owners nor a dollar of credit to |
carry on the worlds commerce.
With a lofty indiffC renee to interna- !
tiOnal money markets and the needs |
OF trade, India sprinkles gold dust |
over the food served at extravagant |
banauets. Immense quantities Of gold
and silver are used to array brides
for their marriage ceremonies. and in
4 multitude Of other forms Of decOra-
tiOn.
Gold is believed, moreover, 10 have
an occult power OF healing he sick.
"It IS q popular remedy n the native
pharmaconOei0," SAYS lie government
study. "and Medicines containing gold
are favored for many diseases"
The Worlds Gold Supply.
All this has more than a picturesque
interest. 1t involves the problem Of
altering the distribution OF the worlds
gold supply-a problem that took on
new Importance when executives Of
the British, French and German Cen
trail banks and the American Federal
Reserve system recently fOregathered
in New York and Washington, and
with the adjustment of Federal Re
serve rediscOunt rates below the Eu-
ropean level,
As the world recovered from the
financial chaos of the war most ma
tions have struggled back to, or to-
ward gold standard for their cur
rencieS. To establish and maintain
such standards they must have gold
reserves. The currents of interna-
tiOnal trade and other influences have
brought to Americas Golfers about
gold But in the last quarter of a
century India has been quietly absorb
Ing immense quantities of the yellow
metal. With a store now estimated
ut about S2.5OO.OOO.OOO. she draws to
herself a large part Of the new gold
produced from year to year.
Meanwhile, the worlds gold prOduc.
CHI IL hn
maximum for this century, reached
between 1910 and 1915. Although
there has been a recovery in part
since 1922. this increase has been viii.
ated. SO far as monetary gold for the
world is concerned, by the increase OF
Indian absorption.
Proposed Remedies.
IN an attempt to halt or at least
tetard this accumulation, far-reachins
changes are projected in the Indiar
financial system. Adoption Of a gOlC
bullion basis for India's currency; re
placement of silver rupees in circula
ton by gold notes; establishment 0
g strong central bank; and extension
OF savings bank facilities are now pro
posed All are designed largely t
tcean the Indian population ava
from the habit of boarding gold an
silver pieces and bullion bars.
that is ever accomplished, India's fiv
billions end more of gold and silver /
time will cease to be merely so muc
frozen wealth.
What disturbs bankers and econ,
mists is not the size Of India's store
gold, great as it is, so much as ii
way It is treated. The United STATE
has more gold, our holdings being a
proxlmately S4600O0OOO0 But tn
is working in an effective way.
serves as the foundation for the va
superstructure Of credit employed
home and lately extended, with q
precedented swiftness, to the rest
me world.
Great Wealth Unused.
India's gold is idle. There is lac
ing even a pretense Of making it a
anything to the productive forces
the comfort Of India's S00,OO0,OOO pC
pie or their fellow-beings In ott
lands.
The exhaustive report submitted
Washington was prepared by Don
Bliss, Jr., assistant trade commissit
er at Bombay, under the prOsaic iii
THE 1ambay BulliOn\ Market" ]
Bliss says on this point:
"Vast reserves have been accur
lated in the course Of many year
reserves estimated rs amounting
$J,OO0O00OO0 (Mr Bliss here
Guides a S2,5OOOO0OOO approxil
zion Of silver hOldings) but t
have been jealousy boarded in
form of unproductive precious met
Put to productive uses. or loa
out in the worlds money mark
they would suffice to make India
Of the powerful nations Of the wor
fu-rl- .asF