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gold standard. I am not in love with it at all.
Nor does the gold standard ameliorate the consequences of a trade cycle ?—No.
Then there is only one point. In paragraph 5 you observe “I am necessarily in favour of the abolition of the gold standard reserve as being of no practical use for maintaining the stability of the currency.” By analogy why not abolish the paper currency reserve also because the value of the paper depends upon its limitations ?—Quite.
Would you abolish that ?—No, for this reason. Because we are not placing a fixed limit on the issue of paper. Under the scheme where I say we should abolish gold standard I am placing a definite limit on the issue of the rupees. In the case of paper currency, we have allowed the Government the discretion.
Do you think that possible ? I will tell you why. Because with limited incomes and things like that, there is more scope as population increases for the use of rupee. Could you say for ever and for ever, we shall be coining gold and no rupees until possibility the quantity of gold in circulation will be ten times that of the rupee ? Would that be convenient to the country ?— I should think it would be. I would rather say that instead of using gold we use notes backed by gold. I do not mean that we should use gold from hand to hand.
(Sir Norcot Warren.) Am I to understand from the latter part of paragraph 8 of your memorandum that you are inclined to the rate of 1s. 6d. rather than 1s. 4d. ?—I confess prediliction in favour of 1s. 6d.
(Sir Alexander Murray.) There is one point, Dr. Ambedkar, which you referred to in answer to some questions put to you by the Chairman; you seem to suggest that the Government of India were somehow or other prepared to go on coining rupees simply in order that they may make profit between the bullion value and token value of the rupee. I want to know what you are referring to actually ?—I am referring to this : It is a historical bit of thing. When the Government of India, for instance, introduced reforms suggested by the Fowler