C
closure 2.
331
Chief Manager of the Bank, and I also transmit a copy of a
letter from that gentleman dated the 5th. March in which
he comments on the correspondence as well as replies in
the negative for reasons he gives to the question I put to
him as to whether the Bank would guarantee the coinage of
a certain amount of British Dollars per annum to induce
the Indian Mints to revert to the former charge of 1 per
centum seigniorage.
45
Though the Mexican Monetary Com-
-mission have proposed a high rate of seigniorage (24 per
centum for the first million going down by a sliding scale
to 14 per centum) this does not prove that the Indian Minta
could not produce the British Dollar at a lower rate with-
-out actual loss. As I have already pointed out it was not
contended in the Government of India's Despatch No. 82
Jo dated the 16th. April, 1903, received here in Mr. Chamber-
16655
03
-kain's Confidential Despatch of the 22nd. May of that year brauts
that the 1 per centum seigniorage involved loss but that
it barely met expenses.
4.
I am still of opinion that the
Gov
arrangements suggested in the 12th. paragraph of my former
779 Despatch are those best calculated to ensure the continued
Use