BIMETALLISM.

Otago Daily Times, Issue 11277, 22 November 1898, Page 6

BIMETALLISM.

•.' TO THE EDIT OK. . Sir, —I suppose I must consider myself one of the few—faddists—writing qh the .above subject; but is it not the few who are often right? lam pleased to consider myself one of them, and do wish the subject were more closely followed by those in high places, for there is no subject half so important to Australasia—the debtor country—as is bimetallism. As far back as 1873 Professor Seyd foretold what would follow the closing of the mints to the free coinage of silver—viz., "That money would be made the dearer thereby," and as a consequence employment would bo more difficult to find, so much so; indeed, that wage-earners would be forced into resorting to "strikes," etc. This, when written, was to all intents and purposes ridiculed. To-day, I am glad to say, many see that he— the faddist—stated tho truth. . Alongside this,' I would like to draw attention to the state of India at the present time. Some five years ago the 'Government, owing to the difficulty they experienced in providing interest on loam with exchange between India and England at about lljd per rupee, decided to stop the coinage of the rupee to an extent sufficient to ensure its gold value rising from the above 11-jd to Is 4d? Many of those so-called faddists said what would happen and foretold the. Government would gain their end, but that nothing but stagnation could follow, " because money in India (in 1873 it was the -world) would be made the dearer thereby." The Government has gained its end, but with what rosults the following, extracted from the .address of Mr David Yule (the chairman) at the half-yearly meeting of the Bank of Calcutta,'on July 30, 1898, will go far to show. Ho says:—"We have been told by • the Government that, while it is probably true that its currency policy is detrimental to certain interests, Government cannot favour any single class at tlie expense of tho whole community. This is sound reasoning when it applies, but in this instance tliero can be no doubt that at Iho present day there is not a single private individual in India engaged in business who is not suffering from the effects of the policy of contraction of the currency inaugurated in 1893. .. . Tho mean3 by which the day's pay can be met lias been denied to employers, and the duty of feeding the poor falls on the.public purse. I cannot help feeling that the ill-feeling which has lately developed in India arises from deplining prosperity. _Wo are unable to treat our workpeople as kindly as when times were prosperous and money cheap. It is now a ■ constant application for higher pay on the one side and a constant refusal to give more on the other. Nothing leads sooner to dissension than the worry of refusing and being re-fused, and this misunderstanding between employers and their workmen must gradually create serious discontent throughout the country." Aro nol tho cases similar? Is not the stepping of the coinage in part in 1873 similar to the part stoppage of 1693 in India? Only the former world-wide, the latter local. What portion of tho world has not seen depression since the " contracted currency " of 1873, and what part of India has not seen (according 10 Mr Yule) a similar depression since the inauguration of the " contracted currency"? I am, Sir, quite satisfied to remain, and hope I may induce a few more to become, Dunedin, November 19. Faddist.

VEXATIOUS RED TAPEISM. TO THE EDITOE. Sin, —Re tho above, why have the. railway authorities taken their recent tyrannical action against an esteemed resident at Kavensbourne for travelling without his season ticket, he having oeen a holder of such for over a .decade? Also, why aro people—season ticket-holdert;— compelled now to show their season-tickets whenever they travel, instead of thore being a periodicalexamination, as before? If the present condition of "things is to continue the sooner the department issue motal tickets the better for all concerned—l mean such as are worn by members of tlie House of Representatives, but not necessarily of gold; bronze would answer, and the ' shape of the token might bo varied each year.—l, am. etc., Mukp.ay Aston. Burkes, Niivomhir 13. THE ST. CLA.IR PROTECTION WORKS. TO THE EDITOR. Sir.,—The Ocean Beach Domain Board has decided to lake a second poll on Ist December to determine whether' the ratepayers of Dunediii and surrounding boroug'is "ill agree to become responsible for a large scheme of reclamation at St. Clair, the cost of which will be many thousands of pounds. While the general public is interested in preventing damage being'done there, I do not think tho ratepayers will sanction the initiation of a large scheme of which the end cannot be foreseen. Although a member of the board, T was not a party to the sanctioning, of this poll. Ratepayers must bear in mind that _ a bare majority of those actually voting will be able to bind Uiem to this scheme, and it therefore behoves those who oppose it to see I that their vote are recorded on Ist December | without fail.—l am, etc., ■ Ale.v. C. Begg. FRANCE AND ENGLAND. TO THE EDITOR. Sin,—Your leader of this morning, in which you refer to the mysterious preparations by England for war after the. l'renclu_ have ''climbed down" so completely, omits all mention of one subject; and what is omitted is tho key to tho whole explanation—to the steady and unceasing preparation for war in England of tho past five years and to tho disaffection of Continental Europe. That subject is the international monetary warfare regarding silver of Hie past 25 years, but more particularly '.luring the past livo years, since British legislation closed the Indiau^mints^to t-hn free coinage of silver in June, 1-93. The only difficulties suffered by India from her silver standard were the lUHieulties that arose through her foreign interest being; payable in gold while it. had to bo raised in rupees. Owing.to the want of international bimetallism thore was no fixed relative value between the silver money of India and the gold money of England, and the Indian Government did not know beforehand how many rupees taxation were required to pay the gold debt due for interest in England. The Indian civil service, too, found it a disadvantage to receive their pay in rupees, whose value wiio:i spent in a gold country constantly fell as silver fell in price. India wanted to cure this by England joining in an international bimetallic agreement to use both metals as full legal tender. But the money-lending interest in London was too powerful with .their command of tho cities and the pre.,E. The risa in tho value of gold benefited them, and the merchants, manufacturers, and farmers, who were the sufferers by the fall in tlie pricG of silver I (or riso in the value, of gold), were both prejudiced in favour of gold and did not believe that the fall in silver was the eauso of their troubles. After the abortive money conference in Brussels in 1592, at which England proposed that Europe should buy up every year 30 million ounces of silver, so long a* j silver did not rise above 3s 7d psr oz (a | ratio of 220z silver to loz gold—i.e., _220z silver at 3s 7d per oz about equalling £3 17j 10^(1, the mint value of loz of gold), England closed the-Indian mints to the free coinago of silver. This action caused the repeal in tho United States of the Wiiulom-Shor-man Act, by which the Treasury purchased every year 54 million ounces of silver and issued full legal tender Treasury notes against same. Tho effect of this legislativo blow to j silver, the result of Britain's legislation I against silver, was to cause a fall in the price of silver from 3s 2d per oz in June, 1893, (a | ratio of 24.8 to 1) to 2s 8d in December, 1f95 (a ratio of 29.4 to I)—that is, ths purchasing J power of all those countries who used silver us tho basis of their currency was by the lojriKlativo action of Great Britain destroyed to tliat extent throughout the chief mercantile countries of tho world.- Now tho countrie.; who hold largo reserves of silver in their currency .are .tlie United State. Russia, and i'Vance. All these countries resented the action of Great. Britain,as an unfriendly act: and'throughout Europe generally it was looked upon by statesmen,,as an uufriendly uction, based upon.lhp selfish interests of England as tlie gold creditor of tho world. Hence the "splendid isolation'" of England, and tho unfriendly feeling by ai.l'Continental Europe, which is all more or less interested in the gold value of silver. ,! But last year France.and tiic United States waited upon England w;ith a proposal to bring this monetary war to an end. Tho former proposed that if England would reopen the Indian mints .to free coinage of silver, and would keep one-fifth, of. the .Bank of England reserve in silver (as tho law will at present allow them to do), they (France and tlie United State?) would reopen their mints to tho freo coinage of silver. Lord Salisbury at once asked, "At what, ratio? " and France answered, " At 15£ to I"—that is, silver at 5s an ounce, which would ma'co the sold value of the Indian rupee 2s. Now as England announced when she closed the mints that tho Government aimed at making the exchange value of tho rupee la 4d. she would not agree. Tho matter was therefore referred to the Indian Government, who reulied that if France and the United Stales would agros to a ratio which would - make the rupee worth Is 4d in gold they would approve of tho proposal to reopen the Indian mints. The ratio required to make the gold value of the rupee Is 4d is about.22 to 1, being silver at 3s 6j,d per ounce, the price near which England wanted it sustained at the Brussels Monetary Confcror.co. But the United States n-nd Franca would not agree, though Lord Salisbury invited them to continue ncgotia-, tions. AY ell, mutters have gor.e from bad to worso in India. Her. commercial'interests are being mined through the closed mint and the "scarcity rupee.". Money is scarco in India, trade is bad, and must continue so until the mints are reopened ti> silver. But England daro not open the Indian mints to silyer; for if she did it would then be in tho power of tho countries most interested in silver to make the ratio. 15£- to I—that1 —that is, silver at 5s an ounce, and the rupee worth ?,s (or 10 rupees to the. pound). This would mean that with a rupee at ,2s India could pay riff its debts, both interest and principal, to England with onc-tliircl less of her products than was required with a rupee at tho 22, to 1 ratio—silver at 3s 6J.tl and the rupee at Is Id. And as silver prices rule the prices we gat in gold, the Blimn thinr; applies to our debts. With silver at 5s per ounce (lat to 1) we could pay our debts to England with onethird less of our products than .vit» silver at 3s 6^l per ounce.(?.2 to 11. Hitic ilialaohrym's. England must reopen tl.e Indian mints, because the mercantile interests -of India are being ruined: bscauEn London financial interests uro embarrassed by a oietlwr.i of unlendable rupital in London, while at the same, timo there is such a pressure on the reserve nf the Bank of England fj'- gold as endangers the London..financial system. This, then, is tlie position'* England wants to reopen the mints. The United States, for favours lately grar.ted by England, are disposed to co-operate, and t'fjree to tl'o 22 to 1 ratio. But France blocks the way. That this is not assortior. hear w!;ot Sir Samuel Montagu, Bart., M.P., bullion merchant, London, lately said in an address: "When I was on the commission (goldl and silver} some years ago, I suggested r. 20 to 1 ratio : now we hnvo arrived at 22 to 1. Sir Edward Samocm lias put forward very forcibly the position in which France stood, because under tho international arrangement it was only France that blocked tho way. . . . "What ought our answer be to France, the country which blocked the way to an international standard for silver? Even biroetollisls could not beg and beseech France to alter her course. Tho Indian Government ought to persist in establishing a gold currency until France came to.mason." Franco will not agree to reopen her mints at 22 to 1. ai.d that i3 the rate that England Ims decided upon, :md France must be coerced. Anything will make a pretext for war—Fashoda,, or anything else. But it is to be a war in the interests of London and the gold creditors of England, and against tho intercuts 'of England's gold debtors, of whom wo stand about chief. We should support international bimetallism at 15£ to 1. "Wlia1, is in the inter-rats of England as a gold creditor country is directly against our interests as a gold debtor country. I do not know if I.make mystlf understood. People nn> apt to underrate tho influence of the "currency question" upon matters o.r practical politics, but the mere one studies it tho more he is convinced that any explanation of international action which leaves il out only puts half the truth forward. I do not pretend to say it accounts for all thst is mysterious, but it explains England's steady preparation for war ever since tho closing of tho Indian minis gained for her tho ill-will of tho world.—l am, etc., November 15. Verax. P.S.—I see the latest story is that silver if dead. The wish of the gold money men is father to the thought. The same thing was said after the Brussels conference in 1892. after the Indian mints closed, after the repeal of tho Sherman Act in 1693, after the last Presidential election in 1896, and now after tho elections for Congress in 1898. But it still lives, mul, if not settled before, will_c!e as alive as ever at the Presidential election' in 1900.-V.