§ 35. Mr. TOUCHEasked what difference in the present market value and amount of annual interest there would have been if, when power was taken last year to double the amount of the paper currency reserve placed in British Government securities, the additional sum then invested in Consols, which shows a loss from depreciation of £108,219, had been invested in Indian Government rupee 3½, per cent, paper in India?
§ Mr. HAROLD BAKERIf an investment in rupee paper had been made at the price current at the time, the market value on 25th November, 1912, would have been higher by about £98,700, and the annual interest by £7,680. But the Government of India desired to make the investment in a sterling security rather than in rupee paper on account of the advantage of 2280 having a substantial part of the reserve in a form of security not necessarily influenced by the causes which might shake confidence in currency notes.
§ 36. Mr. TOUCHEasked whether the Indian Government acted on their own suggestion and initiative in proposing legislation authorising the amount of the paper currency reserve which might be invested in British Government securities to be doubled, or did they propose the necessary legislation in consequence of any suggestion or recommendation made to them; if so, with whom did the proposal originate; and by whom, and when, was the recommendation or suggestion to the Indian Government made?
§ Mr. HAROLD BAKERThe Government of India acted on their own suggestion and initiation in proposing the legislation in question.