THE PROBLEM OF THE RUPEE - Page 366

FROM A DOUBLE STANDARD TO A SILVER STANDARD 351

Thus, without abrogating the bimetallic system, substantial steps were taken in realizing the ideal unit proposed by the Court, as may be seen from the following table.

TABLE III

U NIFORMITY OF C OINAGE AT THE END OF AD . 1833

Issued the Gov- ernment of Silver Coins Col3 Col4 Gold Coins Col6 Col7 Legal Ratio
Denomina- nation Weight Fine- ness Denomina- nation Weight Fine- ness
Bengal Bombay Madras Sicca Rupee Furrukabad Rupee Silver Rupee Silver Rupee 192 180 180 180 176 or 11 12 165 or 11 12 165 or 11 12 165 or 11 12 Mohur … Gold Rupee ” ” 204.710 … 180 180 187.651 … 165 or 11 12 165 or 11 12 1 to 15 … 1 to 15 1 to 15

Taking stock of the position as it was at the end of 1833, we find that with the exception of the Sicca rupee and the gold mohur of Bengal, that part of the scheme of the Directors which pertained to the uniformity of coinage was an accomplished fact. Nothing more remained to carry it to completion than to discontinue the Sicca rupee and to demonetize gold. At this point, however, arose a conflict between the Court of Directors and the three Governments in India. Considerable reluctance was shown to the demonetization of gold. The Government of Madras, which was the first to undertake the reform of its currency according to the plan of the Court, not only insisted upon continuing the coinage of gold along with that of the rupee,* but stoutly refused to deviate from the system of double legal tender at a fixed ratio prevalent in its territories,†

“16. Although we are fully satisfied of the propriety of the silver rupee being the principal measure of value and the money of account, yet we are by no means desirous of checking the circulation of gold, but of establishing a gold coin on a principle fitted for general use. This coin in our opinion should be called a gold rupee and be made of the same standard as the silver rupee.”

† Cf. Fort St.George Public Consultations of August 19, 1817, particularly the letter of the Accountant-General entered thereon.