§ Mr. TOUCHEasked the Under-Secretary of State for India if he can say what was the cost price of the sterling securities held on behalf of the gold standard reserve, and valued on 13th April, 1912, at £16,074,744?
§ The UNDER-SECRETARY of STATE for INDIA (Mr. Montagu)The cost price was £16,792,546. I should explain, however, that, as against the loss on the depreciation of certain securities, there have been receipts from interest, amounting to £2,985,867, which form part of the reserve.
§ Mr. TOUCHEasked what proportion of silver or silver coin to the total note circulation for the time being is considered by the Government of India as a necessary minimum for safety, especially at the beginning of the export season?
§ Mr. MONTAGUNo such proportion has been laid down as a necessary minimum. The decision as to what is necessary in each year must depend in some measure on the trade conditions and prospects of the season.
§ Mr. TOUCHEasked how much time elapses, when the Government buys silver in London for currency purposes, from the date of such purchase before the silver is coined and available as rupees in India; and can he say what other methods have been adopted during the last ten years for replenishing the rupee reserve?
§ Mr. MONTAGUA period of about a month, as a minimum, must elapse between the purchase of silver in London and its being available as rupees in India. Other methods which have been adopted during the last ten years for replenishing the rupee reserves of the Government of India are the purchase of silver in India and the issue to the public, in exchange for rupees, of sovereigns held by the Government in the Paper Currency Department.