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12. $
at the end of 1903. They offered however to continue coining at
a seigniorage of 2 per cent, subject to the reservation that
rupee coinage requirements must come first, and at our request
to a like reservation in favour of the S.S. dollar.
We told the 1.0. when they informed us of the proposed in-
crease of rate that we saw no objection, but we asked that our
heavy initial supply of S.S. dollars might be done at 12 per
cent. For further supplies of that dollar we agreed to 2 per
cent if necessary. 1.0. agreed to lý % for the initial supply.
I think it is clear that 2 per cent is a reasonable charge.
The old H.K. mint charged 2 per cent and it did not pay. The
at least Home Mint would charge 2 per cent ( see Mint memorandum attached t
to 696/94 ) and to this would have to be added 1 per cent for
freight and insurance to the East... As regards freight and in-
surance however it may be remarked that London is the best market
to buy silver in and that freight and insurance have equally to
be paid on bullion sent to the East for coinage
Mint charged 2.1 per cent on the coinage of rupees when the
free coinage of rupees was permitted.
...
The Indian
I do not believe for a moment that a Mint at H.K. would pay
its way with a less seigniorage than 2 per cent, and even with
that charge it would be necessary that the Banks should agree to
take a large minimum yearly. The expenses of coining the dollar
in India must be much less than in H.K., since the Mints there
are in existence and have to be kept going in any case.
As to difficulties in supply, from the last letter in the
print attached to this paper you will see that the Indian Govt.
estimate that they can supply 50 million dollars yearly. Sure-