I have shown already that the gold standard would be disastrous to China as well as foreign interests in China; the latter would be affected badly by the economic disturbance that Would result from the adoption of any ill-considered plan for the reform of Chinese currency. But it is surprising that few have realized that the uncertainties in exchange could be minimised with silver as the standard. The unification of internal currency - the method by which it could be brought about, I will detail in the following chapter - would by itself bring about a great deal of stability. In considering the questions connected with exchange, the mistake is often made of paying no heed to questions connected with prices. A fixity or uniformity in exchange is of little value if prices fluctuate heavily. The significance of a given amount does not lie in the numerical total, but in the amount of commodities it would be able to purchase. Considered from this point of view the currency of even India is far from perfect, and China should avoid the pitfalls of reform in India. While the rupee has been standardized in terms of gold, until recently no gold circulated in the country; and even now the total of gold circulation is surprisingly small. If in the near future any proposed silver coin for China is standardized in terms of gold the position would, so far as circulation of coins is concerned, be no better than in India. In the meanwhile, the effect of the standardization in India has been a very large increase in the value of commodities; prices have been soaring up year after year so much so that the Indian Government has had to appoint a Prices Enquiry Commission. What effect the rise of prices in India has had, it is too well known. And the effect of the rise of prices in China would certainly be worse; it is not at all improbable that the result of it would be that, not only would it bring about untold suffering to the poor Chinese but that it would check the volume of international trade - by first reducing exports and then reacting upon imports. Therefore, the proper way to look at the question is how to bring about a steady exchange which will, at the same time, not lead to unnecessary fluctuations in prices.