§ MR. REESI beg to ask the Secretary of State fur India whether the Government of India has called in the outstanding stock notes; and, if so, whether he failure of experiment is due to the unwillingness of the inhabitants of India to invest in railways and other public works in India.
§ MR. BUCHANANThe stock note referred to were interest-bearing notes of low denominations (from Rs. 12½ to Rs. 100) issued in 1882 shortly before establishment of post office savings banks in India, in order to enable small savings to be invested in Government securities. The amount taken by the public was about £115,000, the restricted popularity of the notes being apparently due to the possibility of loss on realisation, and to the greater conveniences offered since 1882 by post office savings banks, which arrange for the purchase of ordinary 44 Government securities on behalf of investors. In 1888 the Government of India discontinued the issue of stock notes and undertook to give ordinary Government securities in exchange for those already in existence. Practically the whole issue was exchanged in this manner, and the balance of outstanding notes which is to be paid off in cash in the present year only amounts to about £400. The large increase in the amount of rupee paper held in India indicates that the latter part of the Question must be answered in the negative.