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PUBLIC RECORD OFFICE

Reference :-

། ། ། ། །།

חד

C.O. 882

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

| COPYRIGHT PHOTOGRAPH—NOT TO

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when the sovereigu circulated in the island at its full value, and all other coins only in the same pro- portion.

79. (3.) It is said that a gold currency would cause a depreciation in the value of sugar.

80. No doubt if the dollar in account were rated really at the fifth of a full-valued pound or sove- reign, in place of 2 rupees at present, or 3s. 8d. sterling, a hundredweight of sugar would command a nominally lower price in dollars of 4s. each, than in dollars of 38. 8d. each; but it must be obvious that this difference would be at once rectified by the exchange. A bill.on London for 1000 dollars of 48. each would be worth in sterling 2001.; while a bill on London for 1000 dollars of 38. 8fd, each

would be worth only 1851. 16s. 8d. In order to realise the same sum in sterling money in London, the sugar that sold for 1000 dollars of 48. each, should sell for 1076 of the present dollars of 2 rupees each. The higher price, therefore, would only be nominal.

81. (4.) It is said that gold is more an object of desire throughout the world, and commands a greater value, especially in India, where there is a strong desire for it, and where it is much preferred.

82. It cannot be denied that gold is an object of general desire; but so is silver. And the propor- tionate desire for each, as measured by the relative value which people attach to them, is as 15'7 is to 1. In India, gold has precisely the same relative value to silver that it has in every other part of the word. It cannot for any time have more or less. The Indians are fond of gold; and at least, in this fespect, gold coins would be useful in Mauritius for to the Coolies, who would gladly of wagea payment take them in place of rupees. If the savings banks were to return the deposits of the Coolies in sovereigns, the objection now mid to exist against the use of savings banks, because they pay in British silver, computing the rupee at la. 10d., would be entirely removed. But as to gold being an object of desire, it is certain that sugar, the produce of the island, is so much inore an object of desire with those who have gold and have no sugar, that they are always willing to give the one for the other; and the Mauritius planters may never fear obtaining whatever gold they require, as long as they have angar to give in exchange for it.

A Silver standard and a Rupee cir- culation.

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83. It will therefore be admitted that the reasons why a gold currency is not practicable in Mauritius are not such as can be considered tenable or of any importance. Whether it is desirable, is a question I will consider hereafter. Meantime I will only remark, that if, upon the whole, it shall be thought best to introduce the gold standard and a gold cir- culation, for they have never yet been introduced, though attempts have often been made, there is no objection in principle, and none in practice, if proper care is taken to adjust the present obligations

to the new standard.

84. Against the practicability of a gold currency the failure of the past is urged. The Treasury very properly reply to that, "it has never been tried;"

but then I must say, that the only reason why it has not been "tried," consists in errors in the means used by the Treasury to carry out their intentions, and not, as is supposed, in the Convention of 1843; for it must be remarked, 1st, that the same failure of the plan was obvious from 1825 to 1843; and 2dly, that had gold really circulated in 1843, as it should do under a gold currency at par, and the British ahilling had, by a limit of tender, really represented the 20th part of a sovereign, no such convention could have been made, or, if made, could have been sustained for one day. No voluntary com- bination of the public has ever yet been long respected when it was contrary to their real private interests ; and the real reason why this convention was respected, not only during its existence for two years, but even during the six years since its conclusion, is, that the public have had no interest to break it, as the rupee has really borne so near the value of 28, in their For though a premium has been paid on currency. British silver at times (though for the last two years it has commanded no premium), it was not so much an advantage to the holder of British silver, as a loss to the buyer of it, which was absorbed by the charge of the broker for the trouble of collecting it.

85. But there is another planqually unexcep- tionable on principle, but which would involve the necessity of much fewer changes and adjustments, and which would be in numerous ways more easily carried into dlhes, and would. ha abanded with much less inestavanlamen to the community.

86. It is a fact hajund`all, cashoverag,

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