Royal Commission on Indian Currency and Finance. Appendices to the Report of the Royal Commission on Indian Currency and Finance

The following outlines of alternative schemes for (1) a Gold Exchange Standard system for India and (2) a pure Gold Standard on the assumption in both cases that the management of the Paper Currency and the conduct of the remittance operations of Government are transferred to the Imperial Bank of India have been brought to the notice of the Commission. [...] The points for consideration in connexion with this scheme are (i) the extra cost involved (ii) the possibility of getting the gold required and the effect of its withdrawal for the purpose of Indian requirements particularly the effect upon world gold prices and (iii) the effect of the scheme on the silver market and the possibility of realising a reasonable price for the surplus silver. [...] The following table shows the growth of the circulation and the changes in the composition of the Reserve:- (Lakhs of rupees.) COMPOSITION OF RESERVE. [...] i I Gross 110'6 The encouragement of the use of notes by the provision of ample facilities for their encashment had been one of the most prominent features of the currency policy of the Government of India in the years preceding the outbreak of the war and this policy was continued as long as the supply of rupees was adequate. [...] The terms of reference were as follows:- To examine the effect of the war on the Indian exchange and currency system and practice and upon the position of the Indian notissue and to consider whether in the light of this experience and of possible future variations in the price of silver modifications of system or practice may be required; to make recommendations as to such modifictions a