PUBLIC RECORD OFFICE
Reference :-
TELEC.O. 882
ستانلس
1
PUBLIC RECORD OFFICE, LONDON!
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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classes of coins
British silver is
and Rupees as
There are two adopted silver. determining the standard of value. adopted solely by the Government, the fixed measure of the money in account by the public. There are two moneys of account: Pounds, Shillings, and Pence, on a depreciated silver stan- dard, used only by the Government, and Dollars, representing 2 rupees, used by the whole com- munity. It is too much to expect that any com- munity will so well understand all the intricate calculations required to convert these various deno- minations into each other, so as to effect justice and to avoid serious errors and discontent.
65. In point of strict principle, it is quite indif- ferent what metal is selected for the standard; but it is certainly desirable, if not necessary, at a time when severe fluctuations are taking place between the intrinsic value of gold and silver, that the cur- rent coin should be of the same metal as the stan- dard. And it is, to say the least, a great con- venience to a community, that the money in account should correspond with the coin in circulation, or that the relation which they bear to each other should be easily computed.
66. The real practical question now to be deter- mined is-shall the plan of the Government be adopted, raising the pound of account to its real sterling value, and adjusting all obligations con- tracted in the present depreciated pound to the new rate; adhering to the British coin of Sovereign, wich its aubordinate silver and copper divisions, and to the corresponding money in account: or shall the system of the community be taken, adhering to a silver standard, the lodian coin, as the most con- venient, and the Dollar in account, representing as it now does 2 rupces? Either of these plans would be preferable to the present state of matters, and either could be adopted without difficulty, and so adjusted with ease as to effect perfect justice to all parties, -to creditors aud debtors alike; though with a very different degree of convenience at all times, and of occasional cost to the community. The chief object, however, should be, next to placing the cur- rency on perfectly sound principles, to secure * uniformity in it throughout the island, and between the Government and the community. Any plan that will best promote that end will have much to
A reformed Gold standard and
currency.
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recommend it. Another consideration, but of less moment, is the facility of calculation which the one or the other will afford.
67. I will now shortly sketch what would be necessary in order to make each plan unobjectiona- ble, and then I will shortly consider which of the two, presents the greatest convenience and is on the whole the most desirable.
68. If the plan of a gold standard and of British money is to be adopted, then the first thing to be done is to limit the tender of British silver to 21.; I think 51. would be too high where payments are so small. The Government should make all its pay- ments in sovereigna, or in notes convertible into gold. For a certain period to be named, the Government should be prepared to receive British silver in exchange for sovereigns, at the rate of 20. to 1 sovereign in order to replace the present depreciated silver cur- rency with a full gold currency. Of course only such a quantity of silver would remain in circulation as would be required for subordinate purposes. would This once done, in future, the currency regulate itself and may be left to ordinary com- mercial operations. But it is a plain pecuniary duty of the Government in reforming a depreciated currency, to redeem their coins at their full value. It might indeed be contended that as the British coins do not circulate at their full sterling value, the public should be left to dispose of them in the best way they can. But it must be borne in mind that although these coins do not sustain their full nominal value, yet the Government on paying them to the troops, and for salaries due in sterling money, have at least received their full value for them in services. No doubt this plan would be some profit to the holders of British silver at the moment, as it would rise at once to the full nominal value, but it would so greatly facilitate the adjustment and change, that I think on every account it should be done. Nor would it be any material loss to the Government, if indeed any; the surplus would probably, in the present state of the circulation, be very small, and if any, it could be sent to another colony. A perfecutarling currency would thus be established; no iteration would require to be made in the rating of thewign goins, us that of 1843 would be correct in relation to mach a sterling currency K