TRANSACTIONS OF SECTION F. 859 



■with fluctuations of exchange, and they do not profess to effect a complete cure, 

 but to check the further inroads of the disease. In England and Europe the more 

 prominent phase is rather that of an 'appreciation' of gold. To deny the 

 existence of this is now hardly possible, in whatever sense the term ' appreciation 

 is used, and to ignore the evils which are consequent upon it is no less difficult, 

 while the Indian analogy renders inapplicable the plausible argument that 

 Governments should not '"tamper ' with the currency. And yet this argument, 

 together with that based on the supposed artificial character of bimetallism, not 

 improbably supplies a large part of the vis inertice which hinders its progress in 

 this country, and does so in the minds of candid practical men honestly desirous to 

 set aside prejudice. It is to them that the appeal must be made, and they may 

 fairly be asked at the present juncture to give their careful attention to the 

 question, for the action of the Indian Government is likely to accentuate the 

 monetary difficulties of the Western world. Directly and indirectly it can hardly 

 fail to increase the appreciation of gold. It may indeed so intensify the troubles 

 aa to compel attention to what was unheeded before, and thus out of present evil 

 future good may possibly issue. But, with a view of shortening the period of 

 suspense, the candid observer may be asked to contemplate the dilemmas to which 

 the refusal of bimetallism has brought those who are anxious to relieve by other 

 means the pressure of monetary difficulties, The Indian proposal illustrates some 

 of these dilemmas, and is at the best acknowledged to be but a pis aller. It affords a 

 fresh example of the dangers and difficulties of a policy of drift, and the practical 

 man may now be asked whether he is really willing that such a policy should 

 indefinitely continue. Happily there have of late been signs that the crust of 

 indiflference is being broken through, and to this beneficial process the Report of the 

 Indian Currency Committee promises to render material assistance. 



4. On India and the Currency. By F. C. Haekison. 



India's action was dictated by political and financial considerations — political 

 m that the import trade and the official were suffering, financial in that Govern- 

 ment found both the variation and the continuous decline in silver intolerable. 



As India has always possessed a favourable balance of trade whether gold was 

 dear as in 18ii5 or cheap as in 1866, whether silver was dear as in 1870 or cheap 

 as in 1893, so it will continue to have a favourable balance under altered conditions. 

 There is, therefore, no reason for supposing that the present experiment will fail 

 owing to changes in international trade. 



On other grounds India's action is also defensible. Europe is not at present 

 prepared to adopt bimetallism, and many think that it is possible to manage with 

 a gold standard and an extended use of silver and silver notes. India, therefore, 

 by adopting the gold standard and using the least possible quantity of that metal 

 in its circulation is doing the least injury that is practicable in changing from 

 silver to gold. 



