LETTERS TO THE EDITOR.
'THE EVIDENCE BEFORE THE INDIAN CURRENCY COMMITTEE.
[TO rm EDITOZ or THZ SPECTATOR:9 `81n,—The .evidence given before the Indian Currency Com- mittee is of great interest, whatever may be the conclusions finally deduced from it. I propose, therefore, to draw the attention of your readers to some of the points raised by the plan such as that suggested by Mr. Lindsay or Mr. Raphael, or by a continuation of the present experiment, modified by im- proved Government banking arrangements to protect the com- mercial community against recurring periods of tight money. The silver currency would of coarse become permanently, what it is now, a token currency. If they take this course the Government will have, to judge from the evidence of both official and non-official witnesses, a strong body of supporters who believe in its feasibility. But we do not find among their utterances any adequate apprecia- tion of the difficulty of maintaining in such a country as India an nnprecedentedly large token currency. To quote again from the Treasury Letter of 1879, "the proposal appears to be open to those objections to a token currency which have long been recognised by all civilised nations,—viz., that instead of being automatic, it must be managed' by the Government, and that any such management not only fails to keep a token currency at par, but exposes the Government which undertakes it to very serious difficulties and tempta- tions." Good observers are expressing some alarm at the domestic situation in India. They tell us that Government in all its ranks is losing personal ascendency over and acquaint- ance with the people, and developing some of the worst faults of bureaucracy; and there is evidence of this in the ap- parently complete ignorance of what the natives of India, educated and uneducated, think of the present situation, surely a vital factor in a currency problem. It would be satisfactory to see promise of greater strength, sagacity, and knowledge in Indian high quarters before entrusting them with so great an addition to their labours and responsibilities. —I am, Sir, &c., A. [We gladly publish oar correspondent's very able criticism of the evidence, but cannot enter upon any further correspon- dence on the subject.—ED. Spectator.]
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