HC Deb 06 August 1912 vol 41 cc2896-7
10. Mr. TOUCHE

asked what portion of the balances held in England represents paper currency reserve; and why it is not, held where the notes are payable?

Mr. MONTAGU

The gold held in England on account of the paper currency reserve is held on separate account at the Bank of England, and does not form part of the Secretary of State's balances as shown in the published statements. The reasons for holding it in England are that it is not required in India for the payment of notes, since a sufficient metallic reserve is held in India for that purpose, and that, through being held in England, it would be readily available for use either to support exchange in case of a diminished demand for rupee currency, or to buy silver in case of an increased demand.

11. Mr. TOUCHE

asked why, as the Secretary of State obtains his requirements by weekly sales of council bills throughout the year, it is considered necessary or desirable to hold balances in London at the beginning of the year of an amount practically sufficient to cover his requirements for the year?

Mr. MONTAGU

The balances held in London depend mainly on the amount of bills and telegraphic transfers sold by the Secretary of State. At times of active trade the sales and the balances are sometimes considerably in excess of the Secretary of State's immediate requirements, but this result is due, not to a desire on his part to hold very high balances, but to his unwillingness to injure trade by not complying with the demand for the means of remittance.

12. Mr. TOUCHE

asked whether the Government of India have from time to time, or at any time, been urged by Chambers of Commerce and Exchange Banks to make their surplus balances available to the public in India during the crop season, when good rates of interest are obtainable, against the security of Government paper; and if they have refused to do so, preferring to employ the balances in London?

Mr. MONTAGU

I cannot say whether at any time in the past such representations have been made by Chambers of Commerce and Exchange Banks, but I have failed to trace any within the past ten years.

13. Mr. TOUCHE

asked when in the opinion of the Government, the time will be ripe for giving effect to the understanding that a Royal Mint or mints would be constituted in India for the unrestricted coinage of gold?

Mr. MONTAGU

The question of opening a mint for the coinage of gold in India is at present under consideration.