Accorpixc to the Economist nothing new or definite has been ascertained by the gold and silver Commission on the supply and consumption of the precious metals. All that has been done is to make it more evident than it was before that the so-called statistics of production and consumption are more or less conjectural and umeliable. In support of this the figures of the production and coinage of gold from 1851 to 1884 are given, and from them it appears that while in round numbers 869 millions' worth was produced 1,136 millions were coined, Thus in thirty years it appears from these statistics that 260 millionss or 30 per cent, more gold coined than was produced. The difference, or a very large part of it, was no doubt gold coin which was re-minted, and as a proof of this it is shown by Mr. Palgrave that between 1871 and 1884 one-fourth of the gold coined at our mint was from United States coin. It i dent from these statements that no light has been thrown on this part, of the subject which the Commission had to deal with, and it would seem that nothing new has been elicited about the movements of commodities. We know now as we knew before that a great rise in prices took place between 1870 and 1873 and an almost continuous fall from the latter year down to 1886. when there was a slight improvement. That is in wholesale prices, but as regards retail the information is defective.
The chief end and object of the Commission was, however, to elicit information as to the alleged adverse effect on trade of the fall in the gold price of silver. And with regard to what they have done on thi: object the Commissioners say, in their Report, accompanying the evidence which they have taken, that the evidence given was upon these heads:-—fhwe (a) The position of the Government and (b) The interests of merchants trading with India, China, and other silver-using countries The effect upon the general trade and industry of the United Kingdom; and (a) The remedies which have been proposed.
They got evidence largely on one side only of the questions at issue, and the Commissioners say that they have not completed their enquiry. One of the witnesses whose evidence is quoted by the Economist was Mr. Waterhouse, the Financial Secretary at the India Office, who gave it as his opinion that the fall in exchange had been a great loss to the Government of India; but that it had not materially affected traders with India; that producers in India had probably gained by the fall, but chiefly by the introduction of railways; but that neither the producers in India, nor the purchasers of Indian produce, nor the exporters of European goods to India, nor the Indian purchasers of these goods had been materially affected by the fall in exchange. The only class who are affected thereby are the employees of the Indian Government, and they only when they make home remittances or draw pay or pensions at home when these are payable in rupees. British soldiers are benefited, because they are paid, in India, in sterling and the low exchange gives them more rupees. Mr. Bythell, a awember of a Manchester firm trading with Bombay, showed, as we have done before, that trade between England and India is now conducted as simultaneously as possible.
He said in answer to. a question I should like just to impress upon the Commissioner first of all that nearly all of the business now, since telegraphic communication was so perfect, is done simultaneously, There is very Title produce shipped, 1 belive, from India for sale, on what you might call speculation, as merchants' specula, tion, and there are very few Manchester goods, I think, shipped to India in thas way. Business is nearly all done either in execution of offers made, or through the exporter making offers in the currency of the country in which he sells. For instance, if we sell 1,000 bales of cotton to a man in England that will be at so much per pound delivered in England. Well, we do not sell that unless at the time we can contract for the cotton in India at a price fixed in rupees, sell our bills on England at an ex chan which the bank for the time being will then fix for bills to be delivered when the produce is ready, and engage our freight, so that if we can close those three operations in India, of course we have fixed our price in sterling, and if we get the price fixed per pound simultaneously from our buyer in Burope our transaction is closed, provided all parties to the contract fulfil it—provided wehavenofailure, To this it was objected that, although the merchant might thus shift the possibility of loss off from his own shoulders, the risk would have to fall somewhere. But Mr. Bythell demurred I do not think so, because the banks who buy the one class of bill and sell the other put one transaction against the other and keep themselves covered from day to day as nearly as possible, I believe. For instance, I believe if some bank manager here who had branches
Text read from the printed page and cleaned; old type leaves the occasional error.