A hundred years ago July 11, 1919. Archives

Bombay Merchants’ Chamber on the Currency Crisis.

The Committee of the Indian Merchants’ Chamber and Bureau in Bombay, submitting to the Government of India their views relating to exchange and currency questions, strongly urge the the fixity of exchange within gold points and suggest the introduction of a token coin, valued at two rupees or three, in which the percentage of silver shall be so small that there may be no appreciable loss even when silver is seventy pence. They also advocate the issue of coins to an unlimited extent. A point which the committee desire most to urge is the penalising of Indian Exports by the raising of exchange and the undue advantage which it gives to imports from foreign countries. The committee advocates the strengthening of a gold exchange standard, believing that a gold exchange standard has proved from the beginning disastrous to the country, and that in gold standard only lies its salvation. In order to make gold standard a success, the Committee recommend that establishment of a gold mint in India on the same terms as those given to the British dominions. Both the gold standard and paper currency reserve should be entirely located in India. Council Bills must be sold meanwhile for stated amounts. The committee emphasise the need of strengthening the silver market in India and finally urge that the Controller of Currency or Financial Secretary must be in Bombay because Bombay possesses the largest number of banks, and is the principal bullion and discount market in the East.

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Printable version | Feb 23, 2020 11:55:53 PM | https://www.thehindu.com/archives/bombay-merchants-chamber-on-the-currency-crisis/article28362516.ece

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