HC Deb 17 December 1912 vol 45 cc1268-70
10. Mr. TOUCHE

asked the Financial Secretary to the War Office, as representing the Under-Secretary of State for India, whether it is intended that, if gold coins of the denomination of 10 rupees are issued by the Indian mints, the sovereign will remain legal tender in India?

The FINANCIAL SECRETARY to the WAR OFFICE (Mr. Harold Baker)

The reply is in the affirmative.

15. Mr. TOUCHE

asked the Financial Secretary to the War Office, as representing the Under-Secretary of State for India, whether, in connection with the suggestion of the Secretary of State to the Government of India that Indian mints should be opened for the issue of gold coins of the denomination of 10 rupees, he has considered and taken expert advice on the question whether the minting of such coins instead of sovereigns would be a disadvantage to Indian trade and finance by localising the use of the coin to India, thereby preventing gold from being shipped home-in the most useful form when required; and is he aware that there is a further convenience in India being able to ship sovereigns to Egypt when money is required for the movement of crops in that country, which can again be reshipped after the crop season in time for India's heaviest demands?

Mr. BAKER

The possible disadvantage mentioned by the hon. Member and the possible counterbalancing advantages have not been overlooked, and they will be further considered before a final decision is reached. There is practically no export of gold from India to Egypt, though there are large imports of gold to India from Egypt.

Sir J. D. REES

Why, if India is to be given a gold coinage, should she not have a coin suitable for international use, like the Australian or other sovereign?

Mr. BAKER

That matter has not yet been settled.

17. Colonel YATE

asked whether any percentage commission has been paid to Mr. Horace 11. Scott, of the firm of Messrs. R. Nivison and Company, for placing loans to banks and firms from the balances in the hands of the Secretary of State; if so, what was the percentage and what is the total aggregate amount of such commission that has been paid for each year since 1908 up to date; whether the firm of Messrs. R. Nivison and Company either promote, companies or underwrite; and whether Mr. Scott was formerly a partner of Messrs. Sheppards and Company, a firm on the list of approved borrowers?

Mr. BAKER

In 1904, when Mr. Scott was appointed by Mr. Brodrick, the commission payable was 5 per cent, on the interest obtained. In 1909, when deposits with banks were first made, the commission was fixed at 1 per cent, on the interest. From June, 1911, the rate on loans was reduced by the present Secretary of State to 2½ per cent, up to £5,000 in any one year and 1¼ per cent, beyond, the rate on deposits being unaltered. The interest earned and the payments to the broker under these arrangements in each year from 1908 are being circulated with the Votes. The firm of Messrs. R. Nivison and Company arrange for the underwriting of Indian, Colonial, and other loans. They have never promoted companies. When Mr. Scott was appointed by Mr. Brodrick he was a member of the firm of Messrs. Sheppards, Pelly and Company, which had been on the Borrowing List since 1859. He left that firm in 1905. [See Written Answers this date]