CO882-(1-2) — Page 303

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

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ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

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except that the rupee was then undervalued at 18. 10d. in place of is. 10d.

69. But a new value must be given to the Dollar in account. According to law it now represents 48. or at the rate of five to the pound. According to the actual intrinsic value in relation to full sterling money, and the Convention by which it has for years represented 2 rupees, it is worth only 38. 8d., or at the rate of 43 to the pound. But this rate has varied since 1825. The conversion, therefore, of dollars into sterling money should be made thus :--

J. d.

In the case of contracts made prior to 1825, at the rate of 5 francs or 344.9 gr. of silver, or sterling For contracts made between 1825 and 1838, at

353 1 gr. of silver, or sterling ..

3 104

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For contracts between 1838 and 1848, at 344-3 gr.

of silver, or sterling

3 101

For contracts made since 1843, at 330 gr. of silver,

or sterling

3 84

By this means strict justice would be done to every one; and no complaint could be made of paying a debt in an appreciated currency which had been contracted as a depreciated one, as was justly made of the Treasury measure of 1843, and has since, with equal justice, been made in Malta. As almost the whole of the existing contracts have been entered into since 1843, 38. 8 d., or, more correctly, 38. 81141d., would be the rate practically at which the conver- sion of dollars would be made. But the other rates would meet solitary cases, and prevent any com- plaint or hardship.

70. With regard to existing contracts expressed in sterling money, they are of two kinds. The pay- meħt of troops and of public salaries, it is presumed, was always intended to be made in full sterling money. During the whole of the time since 1825 they have been paid in a depreciated currency. Their pay would, therefore, remain the same as it is now, and the change would only restore it to its But there are other contracts made proper value. in the island in the term of pounds of the depre- ciated rate. Engagements entered into before magistrates, and the sale of property, in some cases, under judicial proceedings, have been expressed in pounds. But it is certain that in none of these cases it was contemplated to pay or receive a sove- reign for such pound, it being always at a premium.

The alleged im- practicability of a Gold currency.

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Contracts with Coolies have also been made in pounds, payable in like manner in British silver only. Some consideration should be given to the adjustment of these contracts, which would not be difficult. In this adjustment should be included the salaries of all local public servants of the Govern- ment which have been fixed in the pound of the island, and other public expenditure and existing contracts under hand. With regard to the taxes and duties which would be appreciated by the difference between the intrinsic value of the present pound and the pound sterling, no complaint could be made; for, in fact, taxes are but so much col- lected from the public to be expended for the public. It would be very difficult to adjust the individual taxes, but the whole aggregate amount of taxes would soon be adjusted. If the expenditure were reduced in propertion to the appreciation of the currency, the same taxes would leave a surplus, and would enable the Government to repeal some of the most objectionable imposts, and the matter would thus be perfectly adjusted.

71. If it were a matter of convenience to the pub- lic in the island, there could be no objection to mak- ing rupees a legal tender at the rate of 28. to the same amount a British silver-say 408. of the one and 20 rupees of the other-both being a tender- beyond that sum only for their intrinsic value in silver.

72. Thus a perfect gold currency would be esta- blished the same as in England.

78. But there is a very strong opinion in the colony, I may say universal, adopted by the Rupee Committee, in accordance with the evidence of every one of the witnesses, that a gold currency is not only impracticable, bat undesirable. I will after- wards consider how far it is desirable: meantime I will glance at the reasons which are given for its being impracticable; and I must observe I have seldom seen a case in which so much confusion and intelli- orror has existed among men otherwise very gent, as the witnesses in question have shown them- selves to be.

74. The reasons assigned against the practicability of a gold circulation given by the witnesses, and adopted in the 56th paragraph of the report, are very curious, and may be summed up na follows :