§ 27. Mr. RUPERT GWYNNEasked the hon. Gentleman if he will give the extract from the minutes of the Finance Committee of the India Council referring to the offer of Messrs. Samuel Montagu and Company to Sir Felix Schuster to purchase silver on behalf of the Government, and a copy of the resolution passed authorising the future purchases to be made through this firm?
Mr. BAKERAs I informed the hon. Member on 7th January, 1913, the letter referred to was brought to the notice of the Committee on 10th January, but no recommendation was then made by them, and therefore no entry appears on their minutes. At various later dates recommendations for the purchase of silver were made by the Committee, the first of which 401 was quoted in my reply of 5th November, 1912. These were in due course approved by the Secretary of State in Council. They are being circulated with the Votes. [See Written Answers this date.]
§ 28. Mr. GWYNNEasked where, when, and by whom the arrangement was made between the India Office and Messrs. Samuel Montagu and Company that all purchases of silver should be subject to a brokerage of one-eighth per cent.?
Mr. BAKERThe arrangement was a formal acceptance of the usual practice. It was made orally at the India Office on 1st March, 1912, between the Chairman of the Finance Committee, acting under authority given to him by the Secretary of State in Council, and Mr. E. L. Franklin, of Messrs. Samuel Montagu and Company, and confirmed in writing, as shown in the recently published White Paper. The Assistant Under-Secretary of State and the Financial Secretary at the India Office were present at the meeting on 1st March.
§ Mr. GWYNNEIs the hon. Gentleman aware that nothing appears in writing as to the terms under which this contract was being carried on?
Mr. BAKERNo. The question of brokerage is clearly described in the correspondence to which my answer refers.
§ Mr. GWYNNEIs it not a fact that the question of brokerage was not raised until after the first order had been given?
Mr. BAKERThe question of brokerage was settled orally, and it was confirmed in writing as shown in the White Paper.
§ 29. Mr. GWYNNEasked the hon. Gentleman whether the experience of the last nineteen years, since the closing of the mints in 1893, shows that the yearly coinage required to maintain the currency is 766 lakhs of rupees, of which a yearly average of 251 lakhs is supplied by the recoinage of worn and withdrawn coins, leaving 515 lakhs or nineteen million ounces to be provided by fresh silver purchases; whether on this basis the India Office during six months in 1912 made purchases equal to thirty-two months' requirements, or over fifty million ounces; whether this system of buying was arranged after consultation with, or on the recommendation of, the finance minister in India; and, if the above figures are inaccurate, will he give, as nearly as 402 may be, accurate ones of a corresponding character?
Mr. BAKERDuring the last nineteen years coinage appears to have been at the rate of about 767 lakhs a year, of which about 559 lakhs a year have been provided from new purchases of silver. The India Office bought in eight months of 1912 about 50 million ounces, representing 28 months' requirements in new rupees from purchased silver. The decision not to buy until requirements could be clearly foreseen was in accordance with previous practice. In the present case it was reached after consultation with the Government of India, and was in accordance with their views.