§ 11. Sir FREDRIC WISE
asked the Under-Secretary of State for India to what extent, expressed in sterling at the current rate of exchange, has the Government of India deflated the Indian currency from 1st April to date; and whether he is satisfied that such deflation, designed to support the rate of exchange at or about 1s. 6d., resulting as it does in dear money throughout India, is in the best interests of Indian trade and Commerce.
§ 9. Mr. WALLHEAD
asked the Under-Secretary of State for India what amount of rupee securities in the Indian paper currency reserve have been sold within the last two months in order to prop up the value of the rupee; and whether he is aware, of the effect that this policy is having on Indian trade, commerce and industry, and especially agriculture
§ Earl WINTERTON
On a 1s. 6d. basis the contraction of currency in India between 31st March and 15th June was £10.8 million, of which £1½ million represents the repayment by the Imperial Bank of seasonal currency. As the hon. Members are aware, the exchange rate has recently been fixed by Act of the Indian Legislature, and I am satisfied that the measures taken by the Government of India in discharge of their responsibilities as the currency authority, are in the best interests of India.