245
the Collin
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I don't see at present in you
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is mil.
going to put the Banks
But yo formulati
sulam fo
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won't forget. but though
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pish thick of the Bank of Ht King
blomme MM. 19.9
Sir G. Fiddes
Please see my letter to Mr.
Lucas of today. It explains how I propose to
proceed in the matter of the Bank's 15
illions.
I will remember about Sir O. Addis. I
think however we oan work the scheme so as to hit
the Bank quite lightly and they are interested
in India too). The excess note issue at any
rate must be a nuisance and expense to them.
Mr Gleis
Arc
20.9.17
I won't continge at this stick,
A key to the la
though
you propone to like the Banker elves;
Tell it to India at 433 par 13 ; & replace it lessons.
Ar. 2019
Sir G. Fiddes
If we send our (or other people's }
dollars to India and invest the proceeds in
rupee securities by payment there for the seou-
rities, I do not see how we could ask the
Govt. of India to give us more rupees in exchange
for them than the amount of rupees they will under my proposal to give us more than coin into, or rather their rupee securities
equal in value (at the market price in India
at the time of the sale) to such number of
rupees.
It is quite clear that under present con-
ditions payment in India is quite different
from payment elsewhere. I cannot say therefore
at what price in sterling we could be held
to be selling our dollars. It depends on how far
the artificial measures of the Govt. of India
are succeeding in keeping the rupee in India
below its intrinsic value as silver.
To safeguard ourselves against the
disadvantages of continued artificiality in
the currency position of India, I would pro-
pose to ask 1.0. to give us a guarantee that
within two years of the end of the war they will,
if so requested by us, give us in exchange