India's Exchange Problem, Volume 2

Front Cover
Commercial Printing Press, 1925 - Foreign exchange
 

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Page 12 - Kingdom, where fresh supplies of the only unlimited legal tender coins, the sovereign or half-sovereign, can be obtained by anyone who takes gold to the mint for coinage. In our opinion this contrast is of no value. There does not appear to us to be any essential difference between the power to import sovereigns at will and the power to have gold coined into sovereigns in India.
Page 47 - ... increased. In a very able critique of the Report by Mr. FC Harrison (Quarterly Review, April, 1914), which appeared after this paper was written, it is said : "At present there is no real distinction between the rupee and the note. Both are liabilities of the Government to be kept at a parity with gold. One is a note printed on silver, the other a note printed on paper.
Page 11 - Consequently, we are of opinion that the habit of hoarding does not present such practical difficulties as to justify a permanent refusal to allow India to possess the normal accompaniment of a gold standard, namely, a gold currency.
Page 14 - India,3 and the special legislation that has had to be \ passed to protect the cultivator against the money-lender. Instead, therefore, of taking a multiple of 19 it will be safer to take one of 17. This gives a total of 603 crores. The amount is probably higher, as, wherever there is a permanent settlement, land revenue is on a much lower scale than elsewhere ;• nor does the land revenue figure taken for British India include land revenue enjoyed by assignees, though it does in the case of the...
Page 4 - That what the country wants as a whole is stability —stability first and foremost in internal prices and next in importance stability in Exchange— and that after a certain interval it made little difference either to the exporter or to the importer, either to the producer or to the consumer what the precise ratio may be at which exchange may stabilise itself, provided that it remains fixed at that ratio for a reasonable length of time (para 46) . 11.
Page 27 - what the country wants as a whole is stability — "stability first and foremost in internal prices and next "in importance stability in Exchange — and that after a "certain interval it made little difference either to the "exporter or to the importer either to the producer or to "the consumer what the precise ratio may be at which "exchange may stabilize itself provided that it remains "fixed at that ratio for a reasonable length of time.
Page 57 - We need only say that, as a practical present-day policy for this country, there is, in our opinion, no alternative comparable with a return to the former gold parity of the sovereign. In this conclusion we are supported by the overwhelming majority of opinion, both financial and industrial, represented in evidence before us.
Page 10 - The Indian Act No. XXII, of 1899 making the sovereign and half sovereign legal tender throughout India at 15 rupees to the £ gave effect to the first recommendation of the Committee.
Page 57 - The latter, in the form of proposals for substituting the price level of commodities, in general for gold as the regulating principle of the currency, has been fully and carefully explained in evidence before us. We need not here set out the arguments by which it is supported, which have been published and are now well known. We need only say that, as a practical present-day policy...
Page 10 - The only [the italics are mine] point of the criticism that India's currency system is managed in a sense that is not true of the currency of the United Kingdom lies in the fact that the rupee is a token passing at a value above its intrinsic value, and at the same time is unlimited legal tender. It is true that it is not practicable even to consider the limitation of the amount for which the rupee is legal tender. In this sense, therefore, the system must remain a managed one. But we demur altogether...

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