§ Mr. RUPERT GWYNNEasked the Under-Secretary for India whether the rupee is for all internal purposes recognised as an inconvertible token coin; and whether the Indian community, previous to the closing of the mints in 1893 to the free coinage of silver, had been accustomed to the use of full value coins?
Mr. ROBERTSThe rupee is more than an inconvertible token coin. It is the effective currency for all internal purposes, is legal tender in satisfaction of public demands and private debts, actively exchanges with gold in the internal circulation, and is ordinarily exchangeable for gold at many Government treasuries, though the Government is not under legal obligation in the latter respect. The answer to the latter part of the question is in the affirmative.
§ Mr. GWYNNEasked whether the legislation passed in 1899, following upon 2126W the Report of the Fowler Currency Committee, contemplated a gold standard of value with gold coin as the measure of value; and what is the amount of sovereigns and of gold bullion that have been absorbed by the people in India in each of the past five years?
Mr. ROBERTSThe legislation made sovereigns and half-sovereigns legal tender in India. The information asked for in the second part of the question is contained in the following Table:—
— Value of sovereigns absorbed by the public in India. Value of gold bullion absorbed by the public in India. £ £ 1909–10 2,874,000 5,093,100 1910–11 8,103,000 7,610,800 1911–12 8,884,000 6,712,700 1912–13 11,101,000 7,280,800 1913–14 12,096,000 7,853,900
§ Mr. GWYNNEasked the Under-Secretary for India whether the question has been considered of raising Government gold loans in India with a guarantee of repayment in gold; and, if not, will he favourably consider the advisability of doing so now?
Mr. ROBERTSThe answer to the first part of the question is in the negative. As regards the second part the Secretary of State does not anticipate that there would be any advantage in pursuing the suggestion.