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

A PAPER CURRENCY FOR INDIA.

(From the Bombay Times of Hatch 13.)
LEGISLATIVE COUNCIL, MARCH 3.
MR. WILSON'S BILL FOR THE INTRODUCTION OF A

SYSTEM OF PAPER CURRENCY.

The Legislative Council sat this morning, and
after the routine business was disposed of,
The Right Hon. J. WILSON rose according to
notice to move the first reading of a bill for the in-
troduction of a paper currency. He said that when
he had the honour a fortnight since to make his
financial statement; it would be remembered that
among the Needed reforms of the administration of
India, few things had been considered of more im-
portance than the adoption of a well-considered
improvement in the currency. In fulfilment of the
pledge then given, he now proposed on behalf of
the Government to introduce this bill, which em-
bodied principles of the soundness of which there
could be no possible doubt—but he felt anxious only
that he should find the power of fully expounding
and clearly expressing principles and measures of
such great importance. Whatever difference of
opinion might exist on some points, there was but
one opinion in England or India, that the present
system required great amendment—it was most
unsatisfactory, and called for prompt remedy. He
detailed the well-known defects of the cumbrous
system based upon the standard of a silver coin, the
risk and cost of the necessary transfer for which
from district to district it was difficult to estimate;
one mark of its cost was Sir C. Napier's declaration
that at that time not fewer than 30,000 native
troops were occupied in the guard and transport
of treasure. Even if it could be considered solely
as an economic question, it would be of great im-
portance. To-day he was prepared to propose for
remedy a scheme at once large and comprehensive ;
the Government felt it their duty not to legislate
piecemeal on such a vital question, but to put be-
fore them a well-considered plan, based on sound
principles, so wide as to embrace all India, capable
of being extended to any required limits, yet
secured by checks within itself which should pre-
vent possibility of wrong or failure. In the peculiar
position of India it would be well to premise what
was the object proposed to themselves, in order to
decide upon the best means of its attainment. Start-
ing with the fact that from time immemorial silver
had been the standardl of Indir monetary systems,
he sketched forcibly the evil attendant upon its
difficulty of transport, upon the withdrawal of so
T:::Co hn of
t:e thelimitationnreet precious etals from profitable use to
be locked the unprofitable unprofitable form of coinage ;
i c today
fromte nd a
out
ta commerce,
greatand b
great
re a
of
l losssilver
-
wbe
6ahbr edt uhranvei de
uponst r
i remittance t s ° l
same
tiitheory
ry districtsof e commerce
n to-morrow
theth
eto gpossibly
explained t o
conlideesnastedthme
obdaeses
ooff
all currencies, that etrhey arel
exchanging commodities, he proceeded to declare
the determination of Government to do nothing in
the proposed changes which could by any possibi-
lity involve any breach of faith through Which the
public could suffer loss by the adoption of any
change in standard or system. He illustrated the
enormous development of Indian commerce from
the returns,
which showed that while theeraa was
nearly required
ede
importation of bullion for the years 1836-40
vas\000,10102:0t0h0e,000 average, and o f
thatt h e
thisla s last faoeu
all
IyTS
for the coinage was proved by its being taken to
the Mint for conversion, though there was a charge
of 3 per cent. upon the coinage. He ran Aver the
theory of exchanges, through which nations, and
bbua ns
iknse,
stshorpoeurgahti which
ons. Hi nedai vbidlyueaxl s p
oconducted their
fa
laci
es
orby a
fluctuating
ochuei:rehnaedy,
heietelniersautpapofirxteedd, valueaod
showed by the experience of France andcAustria
how it must inevitably fail here. He declared
double standard to be a misnomer—the thing could
not exist; and so arrived at the purpose of the Go-
vernment to adopt a sound and well-considered
paper currency, leaving the standard unchanged
and retaining its full value. There would be thus
a great profit in the release of the precious metal
from its profitless form, and a well-regulated paper
currency would not be an addition to, but a sub-
stitution, in a cheap material, for the existing coin.
He illustrated the inconvenience and absurdity of
tho present mode by an allusion to the sealed bags
said to contain 1,000 rupees which were circu-
lated by endorsement, probably without actual
value, in the North-West Provinces, He then
developed the Government scheme of paper
currency, the leading points to be secured by
which were, Ist, absolute inconvertibility ; 2d
dzeiolinmsiotfattiboenbofillthaereirues. The outline of the pro-
Tpehr cy,
That there rneshall
be
I,ooaon
eaacbhso.lutely convertible
paper currency, ianudthe form of notes of Rs. 5, 10,
20, 50, 100,
That these notes shall be made a legal tender as