§ Mr. R. GWYNNEasked the Secretary of State for India whether the one rupee note now being issued in India is an unlimited legal tender, and is receivable for taxes and customs dues; what is its gold value; and to what amount its issue is authorised?
§ Mr. HERBERT FISHERThe answers to the first two questions are in the affirmative. The gold value of the one rupee note is that of the silver rupee, for which it is exchangeable on demand. No limit is specially fixed for the issue of these notes. The issue is subject to the statutory condition that the aggregate value of currency notes of all denominations issued by the Indian Government at any time must not exceed the value of the coin, bullion, and securities held against them in the paper currency reserve.
§ Mr. GWYNNEasked the Secretary of State for India whether the Government of India has the right of unlimited paper issues without the sanction of Parliament; whether the Government guarantees the convertibility of the rupee notes in gold or in silver coin or in neither gold or silver; and whether, if the bullion value of a coined rupee rises to 1s. 8d. the Government of India will give the holder of the rupee note 1s. 8d., or, failing that, will they refuse to convert their note?
§ Mr. FISHERUnder an Act of the Indian Legislature the Government of India have authority to issue currency notes of such denominational values expressed in rupees as the Governor-General in Council may direct, subject to the condition that the whole amount of notes in circulation at any time shall not exceed the total amount represented by the coin, bullion, and securities held in the paper currency reserve. The notes are payable to bearer on demand at the place or places named upon them, payment being made in rupees, or at the option of Government in sovereigns at the legal tender rate established by the Indian Coinage Act of 1906. The rate as at present established is one sovereign to fifteen rupees. It is not affected by tem-300W porary fluctuations in the rupee exchange on India, or the gold price of silver. The Government of India's sole undertaking is to cash notes in rupees.