10
These notes were issued by the Banks, and used both by the Local Government and public in unli- mited quantities, notwithstanding express directions to the contrary, which were given from home. Like the note issues of 1818-24, they gradually superseded the use of coin, and eventually became inconvertible. The Banks discontinued all show of cash payments in 1842, when they are said to have "closed their doors;" and it was again the fact, as on the previous occasion of suspended payments, that not a single individual resorted to the legal methods which existed of compelling payment.
The Home Government, when informed of this state of the currency; gave peremptory orders to the Governor to enforce a return of specie payments, and, at the same time, issued a new Order in Council, that of February 1843, to reform and authorise the table of rates; the table being again framed, as in 1825, with the view of introducing British money into use, without excluding other coins, or disturbing the actual level of the standard.
The Treasury, while engaged in framing the new table of rates, having had their attention drawn to the close relations which had lately sprung up between Mauritius and India, in connection with the coolie immigration, at one time contemplated giving the Company's rupee (with which the Indian Government and now replaced the Sices and other rupees) such a preference in the table of valuations as might make it the prevailing circulating medium and standard of value, which it had alrendy become in Ceylon, in consequence of its circulation having been authorised in 1836 by the Ceylon Government, at the rate of 2s. But, upon consideration, it was determined to adhere to the objects of 1825.
Large sums of British money had been issued by the Commissariat in Mauritius since 1825, in pur- suance of the policy of that year; but these sums, consequence of the over-valuation, above explained, of other coins, failed to enter into the general cir- culation, being only employed by the public for remittance, or for the purchase of bills on England at the Commissariat Office. It appears, however, that shortly before the Order of Council of 1840:
in
•
11
was framed, British money, for reasons difficult to ascertain, did at length come into a considerable degree of use; the Banks, more particularly, appear- ing to have used it at this time in cashing their dollar-notes, and it is to be presumed that they did so at no other rate than the authorised one of 48. to the dollar. On the strength of this circumstance, or for whatever other reasons, the Order in Council of 1843 assumed that the existing standard of the dollar of account was 4s. sterling, as declared in 1825, and it made the various coins legal tender upon that basis, adjusting them to each other according to pure contents for coins of the same metal, and according to the ratio of 15'7 to 1 (or 58. the once standard) in determining the relative value of the gold and silver coins. It was not con- sidered right to allow any additional value to coins
on account of seignorage, except in the case of British silver, which was not rated differently from British gold.
The Company's rupee (165 graine pure) was accordingly rated in the Order in Council at la. 10dy the 5-franc piece at 3s. 104d., and single franos in proportion, the Spanish dollar at 4s. Ed., and doubloom at 64s.
As the Order in Council arrived in the Colony at the height of the paper crisis of 1842-44, and the instructions to the Governor to enforce an early resumption of cash payments could not take imme- diate effect, an interval was obtained by the public in which to consider what the operation of the new ratings would be.
The general opinion in the Colony was that rupees would form the mast convenient circulating medium on the resumption of cash payments, on sccount of the preference evinced for them by the Indian laboureri, and the facilities for obtaining them from India; but there was no objection that British miny should cireulate as well. There soumi to have been no dative to resume the use of foreign coima, such as Spanish dollars, doublecas, or The question with the public, therefore, de what rates:rapons ought to be adjusted of aedonut, am the one hand, and to
on the other.
!
TIT
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
1
PUBLIC RECORD OFFICE, LONDON
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