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This tendency to exportation must continue so long as the present stateof things is allowed to exist. When once, an English florin ceases to possess the character of an IO U for gold, it has no more virtue in it than any other silver coin of equal weight and fineness; and if legally, or con- ventionally, received as one-tenth of a pound, with- out limit, it as certainly depreciates the currency of the Island as the issue of any over-rated foreign coin could possibly do.

The scarcity of gold and other coins of pro- portionate intrinsic worth, is largely, if not entirely, due to non-compliance with existing laws. Those laws apply with no less force to the collection of the Revenue than the spending of it; and had silver tokens been steadfastly refused whenever tendered in sums exceeding 408., no doubt other coins legally current would have been forthcoming; the Revenue would thereby have been augmented-the currency would have been upheld in all its integrity-and the Govern- ment would not now, in all probability, have been called upon to seek a remedy for this somewhat embarrassing difficulty.

Before dismissing this part of the subject it may be well to offer one or two remarks with regard to the alleged deficiency of the circulating medium of the Island.

It seems to be implied by one of the banks. that it is the duty of the Government to make good deficiencies of this kind by the importation. of specie.

Irrespective of all considerations of the cost of doing so, it is very clear, from what has already been stated, that neither sovereigns nor rupees would remain long in the Island if brought there, and the process would thus be interminable. All that the Government can profitably do for the community in such a case is to take care that the deficiency is not due to the over-rating of one coin as compared with another.

This being so, it may safely be left to the people, through their bankers, to find a sufficiency of the circulating medium to meet all local wants.

If at one time they find it convenient or profit- able to export specie to pay their foreign debts,

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or for speculative purposes, at another they may find it necessary to import it to meet home liabilities, the cost of such operations fairly falle upon the community. It is no more the function of Government to import. specie into Mauritius for public use than it is to import rice.

In this, as in all other commercial transactions, supply will be found fully to equal demand, with- out the intervention of the State.

Having stated thus much with regard to the proposition of the banks, and with regard to the currency of the Island as affecting that proposition,

I now return to the suggestion of Sir Arthur Gordon that a decimalized rupee currency (after the model of Ceylon) should be substituted for that now supposed to exist in Mauritius.

The most prominent reasons given in support of this second proposal are as follows, viz. :—

1. The vicinity of the Island to India.

2. The extent of the transactions between the

two countries; and

3. That Mauritius rather belongs to the finan- cial system of India than to that of Europe.

Now, although at first sight these reasons would appear to carry considerable weight, yet I think, on closer investigation, they will be found to admit of some qualification.

It is true that, geographically, Mauritius is nearer to India than to Europe. The same may be said of the Australian Colonies and the Cape of Good Hope, in all of which the currency is British; but, in point of time,-which forms an important item of consideration in money matters, -Mauritius may almost be said to be as near to Europe as to India, while it is not much more distant from the rapidly growing Australian com- munities-who already consume about one-fourth of its sugar crop-than it is from Calcutta.

As to the trade of the Island, I find that the average annual value of the exports and imports combined, for seven years, from 1863 to 1869,

was as follows:—

Between Mauritius and Europe Between Mauritius and Australia..

2,450,000

750,000

Between Mauritius and India

1,050,000

So that the commercial transactions of the colony

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C.O.8

882

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