CO882-(1-2) — Page 294

PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

سائلسلي

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PUBLIC RECORD OFFICE, LONDON

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of the Mauritius, which it was intended to assimilate to the British currency, which is a single standard. Even had the silver coins been accurately rated at first, by the adoption of the precise relative value of silver and gold, they must have been disturbed by every alteration in those relative values from time to time; and all the inconveniences of a double standard would have been experienced ia a some- what aggravated form.

38. But, apart from this very minor objection, we have already seen that not only was the conversion of the silver coins into sterling money made at the wrong rate of 5. 2d. the ounce, or in the propor tion of 15:072 to 1, instead of 4. 114 fyd., or in the proportion of 15'7 to 1; but even at that rate there was a serious error made in computing the intrinsic value of the two most current coins, namely, franc and two-franc pieces, respectively at

10d. and 1s. 8d. By this error a pound sterling

become payable with 1665-5 grains of silver, in

place of the full quantity of 1774 grains.

39. That such was the case will be more plain when it is borne in mind that the proclamation fixed the value of the dollar in account, in which all the money obligations of the island were expressed, at

five to the pound sterling, or nominally at 4r. But, at the same time, it declared that the same dollar should be paid in French money (1 and 2- franc pieces, which were the chief coins in use), without any limit of tender, at the rate of 10d, and is. 8d. respectively; so that the real value of

the dollar in silver was thus fixed at 383·1 grains of ilver, which is equal, as I have before shown, to "3s. 9d.; and, therefore, as it was fixed that five of these dollars should constitute the pound sterling in account, for there was no corresponding coin cir. oulating, it followed that the pound under that proclamation was really only 188. 9d, sterling; and even taking the highest rated coins in that pro- clamation, namely, the 5-frano pieces and the Indian rupees, the dollar was only 8s. 104d., making the pound 198.41d. From 1825 to 1838, the Mauritius pound, therefore, was really only 18a, 9d, sterling; and from 1838 to 1843, when the one error was corrected, it was 194. 44d. At the former rate tha pound sterling, that is, the sovereign, was worth intrinsically, 21s. 4d., and at the latter rate, 20s. 8d. 40. But there was another serious error #01-

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mitted in the arrangement attempted to be made in 1825, and which has been continued to this day. It was intended to introduce into the colonies generally, a uniform standard of value, coin in circulation and money of account, and very naturally, those selected were the same as are in use in this country. To such a plan there could be no objection in principle, and none in practice, when the currency of a colony was in an unsettled and deranged state, so as to require some change; otherwise such an attempt would be very objectionable, as being inconvenient

to a community, and offering no convenience to the Government or the Empire at large; for it matters not what a currency may be, provided it be placed upon a sound basis, as the exchanges will rectify all the rest. It is not the slightest inconvenience in the transactions between this country and India, that

the one has a gold standard, and the other a silver one; that the one has one set of coins, and the other another set, all being based on the soundest principles. The exchanges assimilate the one to the other with the greatest accuracy. No good could arise from a change of the Indian system to corre- spond with the British, but much inconvenience would be experienced for a long time to the people of India. Bat probably the currencies of our colonies generally, and certainly that of Mauritius, was in 1825 in so unsatisfactory a state, that it was needful to make some great change; and in so doing there was no reason why the British system should not be adopted. But in the attempt, besides

the great errors already adverted to, another of a very serious nature was committed.

41. In introducing the British gold standard, it

was at the same time contemplated by the Govern- ment, that the only circulation should be British silver, excluding gold. Why this was done I never could understand. But I suspect it arose from a participation in a popular delusion, that a gold cir- culation is more expensive and difficult to maintain than a silver one; and from the apprehension, quite unfounded to any important extent, of trenching upon the gold reserve of the Bank of England; for I will never believe that the Lords of the Tramry really contemplated an advantage from the man of a depreciated coin, or were influenced by the paltry considerations of the profit of coining silver;

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