The Indian Government has published a long Resolution on the
Silver question, which appears to be for the most part an answer to the proposals of the Bengal Chamber of Commerce. The Chamber had recommended that, carrying further what has already been done in France or Belgium, the law authorising the coinage of silver on private account should be repealed. To this the reso- lution replies that it would aggravate matters, by giving the rupee a fictitious value. That is true, no doubt, but the Chamber evidently made its proposal only as a first step to the adoption of the gold standard. The Government meets that point also, declaring that although a gold standard is desirable, it is too costly a remedy. Furthermore, the Government expresses its opinion that the depreciation is the result of the demonetisation of silver by European nations. It asserts, what is believed by all the beat observers, that general prices have not risen in India. And finally, it announces the policy of the Government to be to avoid as much as possible in the future incurring obliga- tions that must be discharged in gold. The Government will not suspend necessary public works, but it will continue them only so far as money for their construction can be raised in India. As a policy of expectation, that is, perhaps, the best tile Government of India can adopt. Its difficulties now arise from the fact that it has to pay almost £15,000,000 a year in gold in England. And the conclusion of the resolution is that it will not add to that sum, if possible.
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