246
for the proceeds in Indian currency of the sale of
our rupee investments British dollars (which they
coin in India ) in the same proportion as the pro-
portion in which we have sold dollars for
rupees on the basis of silver content, e.g. one
dollar for two rupees.
We shall thus be sure of getting our silver
dollars back if we want them, and in the meantime
we shall merely be lending them at interest to the
Govt. of India, risking only the fluctuations of
rupee securities so far as they fluctuate otherwise
than with the fluctuating value of the rupee.
Does this strike you as sound ?
Mr Colle
ABC
23.9.19
No, from En porn pics of the
ounces of bullion [Comed worth 53° for 03
the dollars.
You proze one to Lead
or uncrived doesn't matter] ampt 4 Judie if hereafter dedie
will restore an Equivalent of bullion (comics) of them)
time when it maghave dipped Gray) 30d.||
4ray/300
efa
Good for Inden, bar where do the owners
come in?
Ct. 2579
See A. in
my
1 first minute
す
Sir G. Fiddes
Then these dollars must remain
deposited with the Govt. of H.K. as part of
the security against the note issue of the Bank,
ว
and if hereafter silver drops to 30 an oz.
they will be of just the same sterling value
as dollars sent by the Govt. of India to replace
them would then be. The differences will be
(1) that they will have earned no interest in
the meantime
(2) that we shall not have the desirable op-
tion of continuing to hold rupee securities of
the Govt. of India which that Govt. does not
propose to allow to sink below the parity of
1/4 ( gay silver at 44d. )
As regards the owners - the dollars will be
owned by the H.K. Govt. as soon as we have re-
placed them with our own legal tender notes in
the bank's reserve.
Your objection applies equally to any sil-
ver with which the Govt. of H.K. could supply
the Govt. of India, and I propose therefore to
proceed no further with my scheme, and to
write to 1.0. as in draft herewith.
I have discussed this
26.9.17
with Mr Hewins and we feel that the schaue hobiter be held upp
Pt.
27.9
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