The Sun.
London, England, 1860-03-01 00:00:00

PAPER CURRENCY IN INDIA.

The minute of Mr. Wilson on the subject of a
paper currency in India has been received in this
country, together with a strong recommendation
from the Governor-General for its adoption. Mr.
Wilson attaches much importance to the considera-
tion that the introduction of such a system should
take place only under circumstances to render it
apparent to the population that it is founded solely
on a de. ire to give sound financial facilities, and not
as a palliative to meet Government exigencies.
The time for carrying it out appears to him to have
arrived, and he therefore suggests the means. After
recapitulating certain leading axioms regarding a
convertible currency intended to be a legal tender,
Mr. Wilson recommends that the function of issu-
ing such notes should, in- India, be assumed by the
Government, especially as they already have agen-
cies in all localities to collect the land and general
revenues. The managing Board should, however,
be specially appointed, and should be removable
only by the India Secretary in England, their duties
being strictly limited to the exchange of notes for
coin or for other notes, as may be demanded, and
the maintenance of the prescribed securities. They
would constitute a board of currency commissioners,
and should be established in an office at the Mint.
The branch issues are to be in specified provincial
circles, under deputy commissioners ; and the notes
of each circle are to be payable in coin at their
places of issue, the whole being a legal tender in
every part of the country, and receivable for all
Government dues. Probably also the notes of each
circle will be made payable at the capital of the
Presidency in which they are issued, which would
greatly add to their convenience. Silver coin and
foreign bullion are to be purchased at a fixed price.
The provision for the convertibility
the of notes is
to consist of such an amount of coin as may be
deemed expedient, with the condition that it shall
never b 3 less than one-third of the issues, the re-
mainder being represented by Government securi-
ties. In order that there may be only one descrip-
tion of notes in circulation, arrangements would be
made to substitute those of the Government for
those at present outstanding of the Bank of Bengal.
The Government Treasury will transfer a large pro-
portion of its stock of gold to the currency commis-
sioners in exchange for notes, and all public pay-
ments will thenceforth be made in notes. Monthly
Gazette returns are to be published. With respect
to the various denominations of notes, looking at the
small character of most of the individual mone-
tary transactions in India, they are proposed to
be for amounts equal to 10s., £l, £2, £5, £lO, and
£5O. Perfect security against forgery will, it is
considered, be found by adopting notes manufac-
ture 1 in the same manner as those of the Bank of
England, at which establishment the first issues, as
well as the machinery for future issues, will be pre-
pared. The ultimate extent to which a paper cir-
culation might be carried in India is eetimated to
be of extraordinary magnitude. In the last 23
years £105,000,000 sterling has been coined in that
country, and added to the previous stock either in
the shape of ornaments or currency. With the
view to economy, the notes in India, instead of
being cancelled on presentation, as at the Bank of
England, will he retained for re-issue. Finally, it
is proposed, in order that the introduction of the
system may be gradual, that it should first be ap-
plied in the district of Calcutta, and next at Bom-
bay and Madras, its extension into the interior of
each Presidency being effected according to circurn•
stances and convenience.
A minute of Mr. Wilson has also been forwarded
by the Governor-General on the proposal to intro-
duce a old currency into India. Mr. Wilson ad-
mits that if we were now instituting a system of
metallic currency in India a gold standard would
be preferable, but that all the contracts in that
country having been made in silver an arbitrary
change could not be effected without a violation of
right.

The withdrawal of gold from the Bank yester-
day for exportation was £16,000. Most of the amounts re •
ceatly taken have been for transmission to Spain.