India's Demonetization Of Silver

The demonetization of silver by In(ü;i s another long step toward the universal adoption of the gold Standard by civilised nations. A f ter tts long and brilliant Btruggle against the inevitable, the cause of bimetallism must at last capitúlate. Since England made the tii'st move toward monometallism in 1798 and the gold standard in 1816, the conquesta of the single standard have heen continuous. To-day .Mexico is the only natíos with jiretensions to eivilization that allowa the free eoiuage of silver, and the imposmbility of using in a satisfactory manner two standarda of value whose relative worth fluctaates from year to year is coming to be generally acknowledged by all tlioughtful studente of the question who approaches the subject withoat the preposaession of 8 hobby. In the nature of the case there can be hut oue standard, and either gold will be supreme and silver l)e measured by it, or the reverse will happen. Gennany in 1871, France in 1873, Belgiuiu in 1861, Holland in 1875, the United States in 1873, and Austria in 1879 had acknowledged tbis and led the way to the policy now adopted by India. The United States had for years been on what was a de facto ;_''11 baeia prior to 1873, Xwo factors have operated to bring about the advance of the gold standard, its couvenience and stability. One mensure of ralue is enough; a secoud eau luit be superfluous and confusing. If the choice musí be between gold and Bil ver, the former is preferable bec&use it ia lesa bulky and therefore more convenient, and because it fluctuates than the cheaper metal. 1-Vr Bubsidiary coiua, silver Í8 valuable and necessary, Imt iis use as a inoney metal g likely henceforth to be confined to t liis. Out .rcscnt gilver purobase law is aluiost eta fur short of complete biinentalliste Ra the i wie af bega! tender tvotes would be. It has tor its central pin;l:'- purchase ol ilver bnllion and the issue of treasury m.-tes against it. The attempl to inerease the amouat of uaoney in thia way, liawover, has not been wiccessfui, it has en Bucb a lick of confdeoea that ;. atnounts of gold have been vrithdrawn Erotu circulation, and the volume of currency bas been reduced instead of increased The demonetixation of silver by India must still further weaken the positioo ofour goverament, and leaves Congress no alternativo but the unconditional repeal of the silver bullion law and the unhesitating and open anDonocement of our adhesión to the gold standard whiob is already practically iu use in this country. India has demonetized silver becanse of the terrible and disastroua unsettlement of values by tlie depreciation of the metal. Silver wil) continue to be coined_by the government as the ünited States eeined it ander the Bland law, tlie seigniorage bly going to the ludían governnn'iit in return for the credit it lends lver rupee to enabie t to circuíate :it par. This is somewhat similar to the silver legislation in this countrv, where the credit of the (Jnited States keeps the silver dollar in circnlation at par, thüugh its bullion valué s but a trifle more thau 60 cents. J5v tlms ing the further fall in the valué of the rupee, the Indian government has undoubtedly taken ;i wist' course that will greatly relieve the financia! di stress prevalent there. Tlie gold Btandard will not preclude the continuance of a silver eirculating medium, bu( giveit stability becanse t i measured by a fixed standard and subaidiary to gold. Ju other words, India will have a gold Btandard without a gold currency. The i ffecl can hardly Eail to be i Corther depreciation in the price of the dishonored metal. India luis been frona time imtnemorial a great purchaser of Bil ver. The white metal has gone out to her in large amounts to settle the balances of trade thai are regnlafly in her favor m.ï $1,000,000,000 in silver is eatimateci o be in oirculation there at the present inie. The stopping of free coinage eau iardly Eail to re. luce the quantity thüa aken, lessen the inarket f or silver, and ncrease the demand for gold, and this will place our government in a still more disadvantageous position than it '(■cu), al the present time. The fací that India has adopted i olicy similar to some of the silver legslation of this country does not justify is in continuing our present eourse. VVithherit s probably but a step torard the further dishonoring of silver, md the effects oí the present Shermau aw in this country are too patent tó illow of temporizing. The United States s at the point where a gold standard with legal tender treasury lotes would be safer aud more satisfacory in all respecta than the silver hulion hiw now in vogue, and if the busiinteresta of tne country demand m iontinned increase ín the volume of the lurrency it Bhould be made in thig way atliiT than in the manner npw pro'ided liy law, , l.ust Memorial Day Gov. McKinloy gpoke in [ndianapolis, and this is i laragraph trom nis speech: -'ïhere isa sentiment abroad in this land that that glorious army was gotten together and equipped for the sole purpose of securn' pensions. I have no patiënte witli hat sentiment. There ia no soldier in ny audience, there is no reputable memier of the Grand Aruiy of the Bepublic n this broad land who entered the muy witli the hope of pension or spoils. The volunteer and the man who was ilaced in command of him are one and ndivisible. The private soldier wore 10 insignia of rank Ou the outside of his tlue coat, but he earried the heari of B ïero underneath it. There were a milion men in the field at the close of the rar, and the higbest tribute which can back to heir homes an.i Bffttled down in the quiet walk of life."