§ Mr. MILLSasked the Secretary of State for India the effect of the transition of Indian currency from silver to gold; in what way the stocks of silver were disposed of and the rate per ounce at which it was sold; and by what other nations it was bought.
§ Sir S. HOAREWhen the Indian Mints were closed to the free coinage of silver in 1893, the effect was to divorce the exchange value of the Indian rupee from the value of its silver content, and for many years before the War its exchange value was kept stable on a basis of 1s. 4d. During the latter part of the War and subsequent years the exchange value of the rupee became unstable, and when stabilisation was again effected by Act of the Indian Legislature in 1927, it was on a basis of 1s. 6d. The silver that has been sold in recent years has been disposed of in various ways which it would not be in the public interest to disclose, and the price per ounce has varied in relation to market fluctuations from time to time. As the silver has been in the main disposed of commercially, it is not possible to say what its ultimate destination has been.