§ 7. Mr. WISEasked the Under-Secretray of State for India why the rupee is still officially taken at 2s.?
§ Earl WINTERTONThough circumstances have changed materially since 1920, when the statutory rating of the rupee was fixed at one-tenth of a sovereign, world economic conditions are still too unstable, in the opinion of my Noble Friend the Secretary of State and the Government of India, to warrant any fresh attempt at the present time to seek a new permanent solution of the Indian exchange problem. As my hon. Friend is doubtless aware, the Government of India have assumed a 1s. 4d. exchange for the purposes of their 1923–4 Budget.
§ Mr. A. M. SAMUELDo we understand the Noble Lord to stay that world conditions govern this rate? Is he aware that the condition which did govern the rise in the value of the rupee to 2s. from 1s. 4d. was that the price of silver rose to 7s., and now that it has gone back, why should not the rate put on a reasonable and proper basis?
§ Earl WINTERTONWhat I said was that world economic conditions are too unstable, in the opinion of my Noble Friend and of the Government of India, to warrant any alteration.
§ Mr. GERSHOM STEWARTHas the Indian Government any hope that the rupee will again rise to 2s.?