INDIAN CURRENCY AND FINANCE. (Hansard, 18 November 1926)

§ LORD LAMINGTON
My Lords, I beg to ask the noble Earl, the Secretary of State for India, whether the Government have come to a decision on the Report of the Royal Commission on Indian Currency and Finance. Owing to a misadventure the Question that I had intended to put down on the Paper was omitted. I have given private Notice to the noble Earl, and I should be glad if he can tell us whether the Government have arrived at any decision with respect to this Report. On August 4 last the Government announced that one of the recommendations of the Commission was to be adopted, but that they wanted further time for consideration before arriving at a decision on the other recommendations.

§ LORD OLIVIER
My Lords, it is perhaps a little inconvenient, that no Notice should have appeared on the Paper of this Question, and I am not aware of the precise effect of the statement that the 722 noble Earl will have to make. I gather that it will be an announcement of the decision of the Government with regard to the recommendations of the Royal Commission on Indian Currency and Finance. One very controversial step has already been taken in regard to those recommendations—I refer to the fixing of the rate of the rupee, a question about which there is a very strong difference of opinion in India and upon which there is a good deal to be said on one side and on the other. I do not know if there will be another opportunity for noble Lords interested in India to take part in a discussion on the subject and to deal with the policy of the Government when it is finally declared.

§ THE SECRETARY OF STATE FOR INDIA (THE EARL OF BIRKENHEAD)
My Lords, there will not be an opportunity for noble Lords to deflect the decision which the Government, acting upon their own responsibility, have reached, but undoubtedly, if the noble Lord should not be satisfied with the general conclusions that we have reached, he will be afforded the fullest opportunity of debate in this House and of examining the attitude of the Government in relation to the Report of this Commission. As the noble Lord reminded your Lordships, the Commission presented its Report in July last. I need not take up the time of the House in attempting to summarise their recommendations, which are very clearly set out in the Report itself. Whether you agree with them or not they are beyond all doubt of far-reaching consequence to the development of a sound and progressive system of currency and banking in India. I must pay a tribute, for it is due, to the great skill and industry of the Chairman, Mr. Hilton Young, and of his colleagues, who have produced a Report which, in ability and in the importance of its recommendations, will, in my judgment, rank very high in a series of historic Inquiries held from time to time over a period of many years into the perplexing problems of Indian currency and finance.
On one question dealt with in the Report—the ratio of the rupee to gold—I found it necessary to ream an immediate decision, and the acceptance by the Government of the Commission's recommendations on this point was 723 announced in August last. Other recommendations, such as those dealing with the establishment of a gold bullion standard and of a central bank, were not of the same urgency and obviously required time for consultation with the Government of India. This consultation has taken place, both on principle and in detail, and I am now in a position to inform your Lordships that, as a result of the interchange of views that has taken place, we have reached the following conclusion: The Secretary of State for India in Council, in agreement with the Government of India, is prepared to accept as 724 a whole the recommendations of the Commission, subject to such further consideration of details as may prove necessary. The legislation which will be required to give effect to these recommendations will be introduced in the Indian Legislature during the forthcoming Delhi Session. If, as I do not anticipate, the noble Lord or his friends either find themselves in disagreement with these views or, in any event, would desire to examine them in debate, I will give every assistance in my power.