15 JULY 1893, Page 16


[TO THE EDITOR OF THE " SFEOTATOR.P] SIR,—I am surprised that this should be looked upon as is complex question. It is, in reality, of the simplest character. If gold was demonetised, who is there doubts that its value would thereupon fall 30, or even 50, per cent. P It is so dear only because nation after nation has sought, and is seeking, to make it take the place of silver money. This has a twofold effect, for it obviously diminishes the value of silver by, to that extent, curtailing the demand for it. If the nations had demonetised gold instead of silver, there would have been a currency question just as acute as the present one ; and there, would have been a bimetallic league, but its object would have been to remonetise gold.

The difference between the line of action proposed by the bimetallic league and that taken by the Indian Government is absolute and complete, inasmuch as the former propose to raise the value of silver money by and through creating a further demand for, and consequently raising the value of, silver. As has been seen, the latter have raised the value of the rupee, at the same time adopting so obviously absurd and unsound a device as one that has caused, and could not but cause, an unprecedented fall in the value of silver, inasmuch as it has checked the demand for it.—I am, Sir, &c., [Is there no absurdity, then, in the attempt to constitute a. stable double standard P—En. Spectator.]