The continued absorption of rupees the absence of the import of gold which in former years had largely helped to liquidate the balance of trade and from which in certain parts of India the crops had previously been financed and the large and growing military disbursements all of which were disturbing the normal ebb and flow of currency rendered it necessary to take steps to start the purchase [...] The large balance of trade in favour of India thus not being adjustable by the normal methods contemplated by the Commission the rates of exchange threatened to break away and to rise to levels unprecedented since the standardisation of the exchange value of the rupee. [...] It is sufficient to say that by dint of various artificial aids such as the withdrawal of extra-legal facilities for local encashment of currency notes the prohibition of the export and import of coin and bullion and of the booking of coin by rail and steamer and (as soon as victory in the war was assured) by successive turns of the screw in the matter of forcing the use of paper currency the [...] It is for this reason that in a later paragraph the Government of India again insist on the importance of A substantial portion of the Gold Standard Reserve holding taking the form of %gold': In present circumstances it will probably be expedient for the Government of India to continue the control of imports of gold and to acquire these on Government account for the purposes of a central holding s [...] Apart from the utilisation of gold for the purposes of international exchanges there is the further question of the extent to and the manner in which the gold resources of the Government of India should be utilised for internal purposes.
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