Sir John Lubbock made on Wednesday an able speech to
the London Chamber of Commerce, in which he propounded a scheme, not for curing the Indian Silver difficulty, but for alleviating it. He did not believe, he said, in bimetallism, because half the product of the silver and gold mines being used in the arts could not be affected by currency legislation, and, if not so affected, would in any possible case vary in proportionate value according to the amount of production and its cost. Nor could he think that, in view of the appre- eiation of gold, the States with gold currency would fail to resist the new demand which would be created for it by adopting it as the standard for India. And, lastly, he could not approve the shutting of the Indian Mints until he was assured that its effect would not be to discredit the rupee in the minds of the population of India, a result which might have incalcu- lable effects. He should prefer himself to tax the coinage of the rupee, say, 10 per cent., for the benefit of the Indian Treasury, the effect of which would be to appreciate the rupee in its relation to gold, and at the same time to increase the revenue. That sounds right, and would be very pleasant to the Indian Government; but it rather increases our in- tellectual difficulty, which is this : All monometallists say, and we should prima' facie agree, that no action of any Government can alter the ratio between gold and silver, that being a question of their relative supply and demand. Sir J. Lubbock agrees with this, but then observes that taxa- tion at the Mints will alter the ratio. If so, then State action can alter it, and the first idea of the bimetallists, however unsound their method may be, is in principle correct.
Previous page
