FROM A DOUBLE STANDARD TO A SILVER STANDARD 371
open for cautious and tentative experiments with regard to the future use of gold. The importation of gold already exists and is increasing, and the metal is much appreciated by the native population as generally to command a premium ……… Thus, after a time, if the use of gold becomes more general, and its value more fixed, some further step might be taken.”
And such seems to have been the impression of the Secretary of State at the time, for he understood the force of the recommendation in favour of issuing notes against gold was that it would “effectively contribute to the introduction of a gold currency in India.”*
But whether conceived as a relief to the mercantile community or as an avenue for introducing a gold currency the proviso was not put into effect. The Secretary of State objected† to any action being taken with regard thereto. In the meantime the paper currency did not prove the panacea, it was avowed to be. The extent it reached and the economy it effected were comparatively insignificant.
TABLE VI
E XTENT AND E CONOMY OF P APER C URRENCY
| Presidencies | Bullion | Coin | Government Securities | Value of Notes in Circulation |
|---|---|---|---|---|
| Calcutta on Oct. 31, 1863 Madras on Oct. 31, 1863 Bombay on Jan. 4, 1864 Total | …… …… 1,17,00,000 | 1,84,55,922 73,00,000 1,19,00,000 | 1,10,44,078 …… …… | 2,95,00,000 73,00,000 2,36,00,000 |
| 1,17,00,000 | 3,76,55,922 | 1,10,44,078 | 6,04,00,000 |
As was pointed out by Mr. Cassels‡ the currency notes, after three years, had been taken only to the extent of about 6 per cent, of the whole metallic currency, which was then estimated by Mr. Wilson to be £ 100,000,000 in sterling, and that they had actually fulfilled their primary object of releasing the
- Par. 59 of the Secretary of State’s Despatch, No. 158, dated September 16,
† See par. 64 of his Despatch, supra.
‡ Cf. his letter to the Government of bombay, dated January 1, 1864. Vide Papers, etc., on the Introduction of Gold in India, pp. 51-69