BI-METALLIO STANDARD. 



63 



of seven millions. India, moreover, was in 

 no way responsible for the depreciation, but had 

 been a victim of the action of others, so that 

 she not only had a right to offer to co-operate 

 in efforts for maintaining the value of silver, 

 but had in a certain sense a right to call for such 

 efforts. Reviewing the monetary conferences 

 of 1869 and 1878, Sir Louis remarked that the 

 latter, while reversing the decision of the 

 former against silver, left it to the discretion 

 of each state to use either metal or both ; but a 

 better solution was required. The loss by ex- 

 change of the Indian Treasury last year was 

 estimated at two millions ; the greater part of 

 the remittances to England was obligatory and 

 permanent, and an increase of the revenue 

 was difficult; the land-tax being assessed in 

 perpetuity in Bengal, and for terms of years 

 elsewhere. He dwelt on the inconveniences to 

 commerce of an uncertainty in the value of the 

 rupee, and urged that a stable international 

 money was imperatively preferred, and insisted 

 that if law was entitled to impose a single 

 metal as money, it had an equal right to im- 

 pose two metals at a fixed ratio. The impossi- 

 bility of England joining in the scheme should 

 not be considered fatal to its success ; while the 

 failure of the conference might involve, not 

 the maintenance of the status quo, but the ex- 

 tansion of the gold standard. If the fall of 

 silver continued, India, on the discovery of 

 fresh gold-mines or some other opportunity, 

 might reluctantly enter into the struggle for 

 the possession of the only metal having a firm 

 international basis. The difficulties on the 

 side of England and Germany must have been 

 foreseen, and he exhorted France and America 

 not to be thereby deterred from persevering in 

 an effort which, like all great reforms, might 

 require time, patience, courage, and faith. 



Before the separation of the delegates, they 

 were presented with samples of a five-franc 

 piece composed of gold and silver in equal pro- 

 portions, and struck by the French Govern- 

 ment as a suggestion in regard to international 

 bi- metallic money. 



The conference reassembled on the 30th of 

 June, but after a brief sitting adjourned to 

 July 2d. The Austrian delegates returned, 

 with fresh instructions to maintain a friendly 

 attitude in regard to bi-metallism, but not to 

 depart from the reserve previously displayed. 

 M. Thorrner, the Russian delegate, had made 

 a report to his government, in which he said 

 that Russia should prepare for the resumption 

 of specie payments by permitting the circula- 

 tion of silver and gold at a premium, and that, 

 when resumption becomes possible, silver 

 should be the standard, gold being permitted 

 to circulate at a premium corresponding with 

 its market price in silver. The premium 

 should be fixed from time to time by the Gov- 

 ernment, and not follow the minor course of 

 fluctuations. The Italian delegate reported 

 that his government would enter the proposed 

 union for sustaining the double standard, on 



condition of coining silver to a restricted 

 amount. In view of the attitude of various 

 other governments, Mr. Thurman, of the United 

 States delegation, expressed the conviction that 

 the offers of England and Germany would not 

 warrant the United States in allowing the coin- 

 age of silver. The United States, he said, did 

 not insist on immediate and unqualified bi- 

 metallism, but were ready to accept approaches 

 thereto, believing it would eventually prevail; 

 but they could not incur the risk of altering 

 the standard through the conflicting or in- 

 harmonious action of other states. 



The position of the Bank of England was 

 stated by Mr. Fremantle. In reply to an in- 

 quiry from Lord Granville as to the terras on 

 which the bank would be willing to resort to 

 the practice of holding silver bullion in the 

 issue department, it had been explained that 

 the possibility of doing so " depended entirely 

 on the return of the mints of other countries 

 to such rules as would insure the certainty of 

 the conversion of silver into gold and gold 

 into silver. These rules need not be identical 

 with those formerly in force." It was need- 

 ful, however, that they should be such as 

 would secure the facility of exchange, indis- 

 pensable to the resumption of silver purchases 

 by the Bank of England, whose responsibilities 

 are contracted in gold. 



The general position of the British Govern- 

 ment was stated in the House of Commons by 

 Mr. Gladstone in the following terms: 



No engagement has been made by the Government, 

 and no authority conferred on the British representa- 

 tive at the Paris Conference, to alter the limits now 

 imposed by law upon the use of silver as currency. 

 The Government were informed that an agreement 

 might be possible between the silver-using^ powers, if. 

 among otner matters, the Bank of England would 

 hold in the issue department part of its reserve in 

 silver; and they communicated their information to 

 the bank, inviting the Bank Court to state its opinion 

 upon such an exercise of the discretion intrusted to 

 the bank by the act of 1844. The Court replied that 

 it saw no reason why an assurance should not be con- 

 veyed to the Monetary Conference if the Treasury 

 thought it desirable that the bank, agreeably with 

 the act of 1844, will be always open to the purchase 

 of silver, provided that mints of other countries return 

 to such rules as would insure the conversion of gold 

 into silver and silver into gold. The Treasury, not- 

 ing the statement of the bank that it saw no danger 

 to the principle of the act of 1844 in such an assurance, 

 caused the delegate of the United Kingdom at the 

 conference to be instructed to convey the assurance 

 to the conference. Mr. Fremantle informed the con- 

 ference accordingly, at its meeting of yesterday [July 

 8th]. The Secretary of State for India will state 

 whether he has authorized the delegate of India to 

 convey any assurance to the conference. There is 

 no intention on the part of the Government to alter 

 the present currency law. 



Lord Hartington made the following state- 

 ment : 



The only engagement which the representatives of 

 the Government of India at the Monetary Conference 

 have been authorized to make on behalf of that Gov- 

 ernment is that for a definite term of years it will 

 undertake not to depart in any direction calculated 

 to lower the value of silver from the existing practice 



