§ 20. Mr. RUPERT GWYNNEasked the Under-Secretary of State for India if there is any undertaking on the part of the Government of India to encash the notes of the Paper Currency Department outside India?
§ Mr. C. ROBERTSNo, Sir.
§ 21. Mr. R. GWYNNEasked if the metallic and invested reserves of the Indian Paper Currency Department are treated as a separate and distinct trust fund, reserved entirely and for all times for the convertibility of the currency notes?
§ Mr. C. ROBERTSThe answer is in the affirmative, but, as explained in paragraphs 108 and 117 of the Report of the Royal Commission on Indian Finance and Currency, the reserve also serves other purposes which do not conflict with the one mentioned in the question.
§ 22. Mr. R. GWYNNEasked the Under-Secretary of State for India if he will state the difference between the purchase price and the current market price of the securities belonging to the Indian Paper Currency Department; and what steps it is proposed to take to provide for the 1090 depreciation of invested reserves before declaring profits of the note issue?
§ Mr. C. ROBERTSThe depreciation amounts to about £676,800. It will be seen from Section 19 of the Indian Paper Currency Act of 1910 that the latter part of the question does not arise.
§ 23. Mr. R. GWYNNEasked on what principle the amount of Indian Paper Currency Gold held in London has been regulated in the past; and whether it is intended to adhere to or alter that principle in future?
§ Mr. C. ROBERTSPast practice is summarised in paragraph 108 of the Report of the Royal Commission on Indian Finance and Currency. As regards the future, the Royal Commission made recommendations in paragraph 117 which are being considered by the Government of India.
§ 24. Mr. R. GWYNNEasked the Under-Secretary for India if he will state what is the object of holding at present in London £6,100,000 belonging to the Indian Paper Currency Department?
§ Mr. C. ROBERTSThe answer to this question is to be found in passages of the Report of the Royal Commission to which I have just referred.
§ Mr. R. GWYNNEWill the hon. Gentleman indicate the passages?
§ Mr. C. ROBERTSParagraphs 108 and 117.
§ Mr. R. GWYNNECannot the hon. Gentleman tell us now, without referring me to the Report of the Royal Commission, why this large sum of money is kept in London?
§ Mr. C. ROBERTSThe hon. Member does not appear to appreciate the value of the careful investigation of the whole subject set out in the Report.
§ Sir G. SCOTT ROBERTSONMay I ask whether this large sum of money would not be more properly in the vaults of an Imperial State Bank of India?
§ Mr. C. ROBERTSThat matter is very carefully gone into in the Report.
§ Mr. R. GWYNNEWill the hon. Gentleman say to what part of the Report he refers?
§ Mr. C. ROBERTSI have already said that if the hon. Member reads the recommendations of the Commission, he will find the answer.
§ Mr. R. GWYNNEAre we to understand, then, that the India Office accepts the recommendations of the Royal Com-mission?
§ Mr. C. ROBERTSNo; the hon. Member must wait a reasonable time for the consideration by the Government of India of this very important matter.
§ Mr. R. GWYNNEThen are you not using the Report of the Royal Commission merely to evade answering questions?
§ Sir G. SCOTT ROBERTSONIs this Report sacrosanct, like the Fowler Report?
§ Mr. C. ROBERTSThe whole matter is under consideration, and is not accepted at the present time.