HC Deb 03 July 1916 vol 83 cc1226-7W

asked the Secretary of State for the Colonies whether the £301,319 which, under the head of investments, is in the hands of the Local Currency Commission of the East Africa Protectorate, is the profit to the Government of that Protectorate on the issue of the £500,000 (seventy-nine lakhs) of current rupee notes 1


As my hon. Friend will observe from the East Africa and Uganda (Currency) Order in Council, 1905, the investments held by the Currency Board represent, not a profit on the note issue, but a part of the coin in exchange for which the notes were issued. The investments and the coin held by the Board constitute together the Note Guarantee Fund, and this fund, together with the general revenues of the East Africa Protectorate is the security for the cashing of the notes on demand.