HC Deb 11 July 1893 vol 14 cc1268-9
SIR MARK STEWART (Kirkcudbright)

I beg to ask the Under Secretary of State for India for what reason have the Government of India sold their bills for less than 1s. 4d. per rupee, in view of the fact that the object of recent legislation was to maintain the stability of the rupee at 1s. 4d.?

LORD R. CHURCHILL (Paddington, S.)

At the same time, may I ask the hon. Gentleman whether he is aware that considerable surprise and anxiety have been excited in commercial and financial communities in Calcutta by the action of the Secretary of State in selling bills on India at 15¾d., whereas the Home Government agreed with the Government of India, in their action taken on the Report of the Commission presided over by Lord Herschell, that arrangements should be made by which the rupee should be kept at 16d. to the sovereign?

MR. G. RUSSELL

The Secretary of State in Council has sold bills at the highest price tendered; that price has of late been slightly below 1s. 4d. The object of the measures recently adopted was not to fix the gold value of the rupee at 1s. 4d. or any other ratio, but as stated by the Viceroy in his telegram of the 15th of June— To prevent a further fall, rather than to raise the gold value of the rupee. As yet there is no fixed ratio between the rupee and the sovereign; and the notification that rupees will be issued in exchange for gold at a ratio of 1s. 4d. will be inoperative unless and until the gold value of the rupee reaches that sum. I may add that the object of this notification was, by fixing a maximum limit, as stated in the Viceroy's telegram already quoted, beyond which exchange should not at present rise, to prevent any possible disturbance of trade by a sudden and considerable increase in the gold value of the rupee.