§ Colonel YATEasked the Under-Secretary of State for India whether, in view of the sum of money, namely, £17,953,995, exclusive of the gold standard reserve, that he now held at the Government of India's credit in London, he would consider the advisability of ceasing the sale of his drafts on India, as their sale might reduce the normal flow of gold to India in settlement of the balance of trade?
§ Mr. MONTAGUThe Secretary of State has every reason to believe that the cessation of the sale of his drafts on India would inflict a most damaging blow on Indian trade and would be received with consternation by those, engaged therein. Gold has in the present year flowed to India to an exceptionally large amount: the sum held in gold in Government treasuries is unprecedented, and the Government holding is made freely available to the public in exchange for rupees.