§ MR. ANDERSONasked the Under Secretary of State for India, If it be the fact that the Indian Government issues a paper currency of five rupee notes, and whether they are in whole or in part backed by a special reserve of gold; and, if he has any objection to lay upon the Table a Return showing the quantity of paper currency usually afloat in India, the denominations of the notes, and the conditions as to the guarantee under which it is issued by the Government?
§ MR. J. K. CROSSSir, the quantity of paper currency in circulation in India has, in recent years, varied from 12 to 16 crores of rupees. The denominations of the notes are 5, 10, 20, 50, 100, 1,000, and 10,000 rupees. Government must retain coin or bullion as a reserve to the full value of the notes issued; except a sum of six crores of rupees, or nominally £6,000,000 sterling, which may be invested in securities of the Government of India. The paper currency is not necessarily backed by any reserve in gold, the rupee being legal tender in India; but Government may hold gold, as reserve, to an amount not exceeding one-fourth of the total issues represented by coin and bullion. The particulars of the Indian paper currency are given so far as they have been received at the India Office, at pages 127–129 of last year's Statistical Abstract. Next year I hope it will be possible to give them fully. The conditions of guarantee are contained in Government of India Act, 20, of 1882, a Copy of which is in the Library of the House.
§ MR. ANDERSONIs the quantity of five-rupee notes mentioned?
§ MR. J. K. CROSSYes, Sir; it is in the Statistical Abstract.