§ Sir JOHN ROLLESTONasked the Under-Secretary of State for India why, in view of the large profits obtained, there were no rupees coined in India in 1908–9; and why were these profits foregone?
§ Mr. MONTAGUOwing to the conditions of Exchange during the years mentioned there was no public demand for increased coinage in rupees. Had additional rupees been coined for the sake of the profit on the operation they could only have been put into circulation (unless the Secretary of State had been prepared to accept tenders for bills on India at rates materially below the gold point) by issuing them in payment for direct services to Government, or in payment of interest on Government rupee debt. To2678W have done this would have been to revert to the practice, common in the Middle Ages, but now happily obsolete among civilised Governments, of deliberately debasing the currency in the interest of Government and at the expense of the King's subjects.