The Sun.
London, England, 1860-04-06 00:00:00

between individuals, and receivable in payment of
revenue and all demands of Government.

That the issue shall be by the agency of commis-
sioners in Calcutta, Bombay, and Madras, fully
empowered, bound to observe the regulations laid
down, and released from all obligation to obey in
this respect any other commands than those of the
Legislative Council. That there shall be a division
of all India into circles, each presided over by a
deputy commissioner at the central town of each
circle. The notes all to be manufactured in Cal-
cutta, and the notes of each circle to be at all times
convertible into specie at the treasury of the circle,
and also at the Presidency. The commissioner in
Calcutta will despatch notes to the districts for dis-
tribution to the public in exchange for silver.
That every commissioner shall retain at all times,
and under secure checks to ensure it, one-third the
amount of the notes issued by him in silver, and the
remaining two-thirds in public securities.
The whole was described as being a secure and
self-acting system, based upon the issue department
of the Bank of England ; and security against for-
gery of the notes will be enured by the aoption of
the well-tried means of the Bank of England,
through whose manufactures and machinery the
paper is to be made and the preparation of the
notes to be effected.

He proceeded to show how this system would yield
a great profit to Government, and as no private
company could compete in circulating an issue
against the Government, the provision in the charter
of the Presidency Banks permitting them to issue
notes would be rescinded under due notice, and

with all possible care that their interests should
suffer as little as possible under such a change.
He alluded to the intended means of utilising
the treasury balances, seldom less than 10 to 12
crores, and also to means already in operation of
getting out from England 10 lakhs of copper coin-
age, as well as to establish new copper mints in
Calcutta and Bombay.
Having thus detailed the main point of
1. A fixed standard of silver,
2. An absolute convertibility of paper,
3. Full security for reserves to cover the issues,
he wound up with an assurance of his conviction
that the great interests of India which were in-
volved would be secured, and the measure prove a
sure basis of growing prosperity. The speech oc-
cupied two hours in delivery.
At a later stage of the day's proceedings Mr. Wil-
son announced that Government had nearly pre-
pared, and would soon submit, a Consolidated Cus-
toms Act.

(From Me Indian Field, March 3.1
Pursuant to previous notice Mr. Wilson brought
in this morning at the Legislative Council, a bill
for the introduction of a system of paper currency.
The right hon. gentleman deprecated piecemeal
legislation. and stated that the bill did not confine
the benefits of the paper currency to the presidency
towns, but extended them to the whole country.
The ingenious contrivance of coinage was invented
to promote barter and facilitate commerce. But the
circumstances of India were unique and peculiar.
There was a cumbersome coinage which was not
easily transferable, and which therefore enormously
enhanced the cost of conveying treasure from one
place to another. Mr. Wilson was not in a position
to state exactly the actual cost to Government, as he
had no returns in his possession, but he believed
that nearly 30,000 native troops had been employed
for escorting treasure. Mr. Wilson said that silver
had been the standard in India from time immemo-
rial; all existing debts and obligations were con-
tracted on the understanding of being met in silver.
It would, therefore,be a breach of public faith to
alter the standard. He was of opinion that the
amount of metal in coin was pro tante an abstraction
from their productive resources of the country. The
country would be unquestionably benefited if a por-
tion of it could be released and permitted to circu-
late, so as to be productive, instead of lying as now
unproductive.
Mr. Wilson stated that since the establishment of
the Mint in 1835, 106 millions had been coined,
and that the annual average for the last four years
had been 12 millions. Taking the 100 millions ster-
ling in circulation, the portion hoarded up by native,
millionaires, the portion melted for jewel and orna-
ments and plates, and the amount transmitted by
merchants to their agents and others in absence of
bills of exchange, it would be found that a consider-
able part of productive capital was needlessly locked
up. Mr. Wilson next adverted to the several pro-
posals put forward. He was opposed to a gold cur-
rency, as it would be an organic change in the pre-
sent currency, which would not answer. It would
not do to have coins of equivalent value in gold and
silver respectively ; they would be variable. The
relative value of gold and silver could never be sta-
tionary. The institution of two coins as the standard
would place us in an anomalous position. To have
a gold currency, the value of which was to be fixed
from day to day, according to the rise and fall, was
impracticable. It would be ridiculous to make at one
time a gold coin representing a sovereign or ten
rupees a legal tender, and at another to fix the value
of it legislatively at rs. 20. In order to illustrate
the absurdity of the proposal, Mr. Wilson instanced
a Convention of the German States to introduce a
gold currency, but the Convention (he could men-
tion on the authority of Adolphus Loftus) was a
dead letter, and that gold circulated only amidst
the higher classes and the opulent bankers. Mr.
Wilson was likewise opposed to the adaptation of
the Indian coinage to the English system, simply
because it was an impossibility. He should like to
see the English Minister who would attempt to
alter the standard of the country.
The remedy which Mr. Wilson had to propose
was no increase to the amount already in circu-
lation; what he wished was merely to substitute
paper, an article of no intrinsic value, for one
of value. During his visit to the Upper Pro-
vinces he was greatly struck with the inconvenience
experienced by native bankers for want of paper
currency. He would mention an instance. In
Miizapore the bankers and traders used sealed bags
said to contain rupees 1,000 each; these passed
from hand to hand. How much a paper currency
would have facilitated their transactions ! He
then mentioned the conditions of a sound scheme
of paper currency. Convertibility was the first
condition, and he hoped that such steps would be
taken as to ensure payment whenever a note wis

presented ; this would fix a limit to the issue of
notes. Agency banks, he said, had power to issue
notes. The Bank of England only was allowed to
issue--notes which were taken as legal tenders.
Acts 44 and 45 were passed expressly to prohibit
other banks from issuing.
Mr. Wilson said that the Government of India
possessed peculiar advantages. Government trea-
suries were all over the country, and also revenue
officers were located in all the districts. The Go-
vernment of India was at once the largest revenue
receiver and the largest disburser. There was, how-
ever, one danger to which all writers on the sub-
ject had drawn attention, and against which he
must guard, viz., the danger of Government issuing
more notes than they were justified in doing by
the cash balances—he cited Russia as an example.
To guard against this danger he proposed an Indian
Commission to be appointed, and regulated by the
bill he held in his hand ; they will act in concert
with the three Mints in the Presidency towns. All
notes were to be manufactured in Calcutta, and
supplied to the other Presidency towns and the
Mofussil according to demand. The country was
to be divided into circles, and the chief station,
containing an European force and the residence of
the chief officer of the district, to contain a local
office, in charge of deputy commissioners, for the
issue of notes.
Mr. Wilson would make the commissioners in-
dependent of Government. He would vest them
with powers direct from the Council of India, and
make them responsible to that body. They were to
act under the acts of the Legislature.
Mr. Wilson then said that notes were to be de-
livered only in exchange, and on no other condition.
the issuing officers would keep ono-third of the
amount of the notes in circulation in coin, and in•
vest the rest (two-thirds) in public securities. The
two-thirds invested in securities would advantage
the Government, because it would lead to the dimi-
nution of the plblic debt. He next came to the
renomination of notes. The character and wants
of the people were, he 'said, to be chiefly considered
, till lately, in fixinc, thuenditeendomination. They had in England
to
have notes for
wr503.u.,51,015c0.,,
20,0 r 250r,s
States,F 5 dols. Mauritius, 5 rs.
£5. The
appaoie. great
Ceylon
the
last he hoped,
s would be
of
mdir:a-entually supplant the mys-
terious 100, ieanpdrolp,oosoed,
!2,11ie
boon,
o a considered
account
o.
e
n bagste
that everyym.enctasi:e would be taken
the
mirn.niuvmilesroanb
to Prevent the notes from being d
orge . They would
be manufactured of the same paper as those of the
Bank of England. They would bear the same dis-
tinctive water-marks, and be of the same size. Go-
vernment of India had to thank the governor and
directors of the Bank of England in waiving their
legislative privileges in favour of India, and in al-
lowing her to use the same paper as the used.
Mr. Wilson said that notice of one year would be
given to the Presidency banks to discontinue their
issues, and arrangements would be made with them
for making up their loss. He was of opinion that
no private bank could meet the wants of the
country.
In conclusion, Mr. Wilson said that the measure
proposed by him was based on well-tried prin-
ciples.

RAPID OUTWARD PASSAGE OE TILE GREAT
BRITAIN.—The Great Britain, as appears from the Austra-
lian advicos, arrived at Melbourne in the very short space
of 55 days, one of the quickest passages on record.