PUBLIC RECORD OFFICE
Reference :-
TILTICO. 882
2 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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with India were, in extent, not nearly half so great as they were with Europe.
With regard to finance, the above figures will serve to show that, during the same period, Mauritius had upwards of three times as much to transact under the currency system of Europe as it had under that of India.
It must be admitted, however, that this is irre- spective of the many exchange operations between the colony and Europe which pass through India, because, in the first place, a considerable balance on trade is payable in that country annually by the colony, and, in the next, because for many years past the rates prevailing between London and India have been such as to render it more profitable to remit to the East, through India, than So long as this through any other channel. continues to be the case the financial relations between the two countries must continue to be of great importance to the smaller; but the moment the state of the exchanges between England and India becomes so changed as to make it more advantageous for the banks to operate direct with London, or indirectly through some other country, they will lose no time in doing so, without regard to what the currency of Mauritius may be; and the financial relations of the two countries would then resume their normal conditions.
Although the reasons adduced by Sir A. Gordon are not, perhaps, altogether such as might scem to warrant so radical and important a change as he proposes, and although I am far from believing that a fair and full compliance with the existing currency laws-with one slight amendment- would fail to produce all that can reasonably be desired, yet I am inclined to acquiesce in the necessity of a change in the direction indicated, as I think such a change would afford a simple and sound solution of the difficulty into which the Colonial Government has allowed itself to be drawn.
The question to be determined is not simply whether the financial system of Europe or of India is best suited to the wants of Mauritius, but whether the colony shall have a sound system or not, and whether the injuries inseparable from a depreciated currency shall be allowed any longer
to exist? And
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not, then in what manner
a remedy can be most effectually applied ?
There can hardly be any difference of opinion as to the paramount necessity of restoring the currency of the Island to its proper standard without unnecessary delay; and this, I think, can be accomplished by adopting either of the two following courses, viz. :—
to
1. By so altering the present currency law
rupee as to raise the legal value of the 18. 10 d., and then enforce a strict compliance with that revised law;
2. By repealing the present law, and passing another in its stead, which, with some modifi- cation, should embody the proposals of Sir Arthur Gordon.
In adopting either of these courses, it should
be borne in mind that prejudice runs rife on currency questions, and that although Govern- ments may pass laws, the public, if so disposed, may render them comparatively inoperative. It is highly desirable, therefore, that any measure to be brought forward for restoring or altering the currency of Mauritius should command popular support.
The all-important parts of the existing laws have, for so long a period, been allowed to remain in abeyance, that it would now probably be 'difficult, if not impossible,-for a long time to come, at all events,-to enforce compliance with them; more especially as the holders of depre- ciated coins would, at the outset, seemingly be called upon to make some sacrifice.
Whether the substitution of a rupee currency would be likely to meet with greater favour or not at the hands of the public, there is no evidence to show; but, taking it for granted that this would be so, it may be as well to consider
the exact form in which it had best be introduced. The Governor suggests that the example of Ceylon should be followed, and, with one some- what important exception, I do not think a better proposition could be made.
Great care and ability have evidently been devoted to the preparation of the Ceylon measure, bit still appears to me to have been a mistake to declare the rupee the sole legal tender.
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