366 PROCEEDINGS OF SECTION G. 



freight and insurance, for with free coinage of silver in France no 

 one would part with it in England for less than he could get by 

 sending it to France to be minted, having there the option of 

 exchange for gold at rated value. Germany had also her silver 

 currency, and was to some extent the counterjjoise in the European 

 exchanges to monometallic England. But it was in the trade with 

 India that the power of the ratio was chiefly felt. While the 

 rupee was valued at two shillings trade with England was carried 

 on to mutual advantage. The development of its vast territory, 

 by means of railways and irris^ation works, as well as by the 

 formation of remunerative private enterprises, was achieved by the 

 introduction of English capital. 



Since the change was effected everything has been altered. 

 Gold being now the only medium of exchange, the nations make 

 every effort to obtain it and to prevent its export, and a demand 

 for it in any quarter at once affects the bank rate. 



('ermany, at the conclusion of the Franco-German war. secured 

 £40,000,000 to £50,000,000 for her new currency,but since 1887 has 

 been unable to make further purchases, and silver, as a token at 

 par value, still circulates throughout the country. Austria and 

 Italy wait their time to complete a gold currency, but dare not now 

 make the sacrifice. India, after holding out all these years with 

 her silver standard, has been obliged to succumb to the strain upon 

 her resources. Year by year, in spite of additional taxation, the 

 fall in the exchange value of the rupee exhausted her coffers, and 

 had it not been that her internal trade under the aegis of the 

 silver standard, and through the stimulus of the improvements 

 made before the change, had been highly profitable, the action 

 which now has been forced on its Government would have been 

 anticipated by many years. It is yet impossible to foresee the 

 result of this action. That it must be momentous for India there 

 cannot be a doubt. 



Alison, m his European history, says that the disruption of the 

 old Roman Empire was the effect of a deficient currencj' more 

 than of moral and social degeneracy. Some time must elapse 

 before the connection between the rated rupee and the altered 

 price of commodities is realised, but a change detrimental to the 

 interests of the natives, caused by Government action, may excite 

 a feeling of discontent difficult to allay. Nor is India alone 

 affected. The (Usturbance has created a commotion in America, and 

 legislative action of a drastic character may be speedily looked 

 for. That things can go on in their present condition cannot be 

 expected, and people wait with suspense the next movement in 

 the enibroglio. 



There is at present in pAirope and America about £400.000.000 

 in silver currency maiiTtained at a fictitious value as token money 

 at a rrttio value of 15i- to 1, and about half as much in India, 

 also now token monev, at a ratio value of 24 to 1. We have 



