CO882-(1-2) — Page 489

PUBLIC RECORD OFFICE

Reference :-

TLC.O. 882

2 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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contraction of the currency, by withdrawing the notes from circulation while temporarily stimu- lating the export of gold. Beyond the possible inconvenience thus caused, it little matters whether the Commissioners have gold in their possession or not, provided their liabilities to the public are correspondingly lessened by the withdrawal of

paper.

To lock up 100,0001. of gold in their vaults is of no practical benefit to the community and exchanging such gold for notes is not likely to be attended with any more serious results than those alluded to. With regard to that portion of the assets invested in this country the case is different. To meet the notes which these assets represent, they must be realized, and the money transmitted to the Colony.

This would be done by the Commissioners drawing on the Crown Agents, and selling their bills in Mauritius or India, for coins legally cur- rent in the Colony, or by the Crown Agents either sending out gold direct, or remitting through India, or otherwise, as might appear to be most advantageous. The cost of the opera- tion could not, in any case, exceed freight and insurance on gold, which, if it had now to be carried out, would be recouped to a considerable extent by the improved value of the securities in which the money is invested. This cost, what- ever it might be, and the temporary loss of interest on investments, would be all that need be apprehended under the most unfavourable circumstances.

The necessity for any such general redemption of notes would probably disappear if a rupee cur- rency were introduced. At any rate, a clause might be inserted in the new Currency Law which would leave it no longer in doubt as to what coins were legally payable in exchange for notes.

In conclusion, I would suggest that Sir Arthur Gordon might be told, in suitable language- supported, in a condensed form, by the reaBONS given in the foregoing remarks—that the Earl of Kimberley believes the defects complained of are chiefly due to the depreciated state of the currency of Mauritius, now practically repre-

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sented by British silver tokens, &c. That the proposal of the banks to constitute the rupee a legal tender for one-tenth of a sovereign could only be productive of further depreciation, and is so entirely opposed to the principles which govern such matters that it could not possibly be enter- tained. That, with one slight amendment, it is thought the existing currency law might be made

as effectually to remove all just grounds of com- plaint as any other that could be devised; but that should serious practical difficulties oppose themselves to the carrying out of that law in all its integrity, then the decimalized rupee currency might be substituted. That there appears to be no sufficient reason why the rupee, and its sub- divisions, should become the sole legal tender. That coin would become the standard by which the legal value of all others, concurrently circu- lating, would be determined and expressed; but to demonetize all but the rupee would be unneces- sarily contracting the circulating medium, with- out affording any compensating advantage in return, &c. That all coins (not tokens) should

be rated strictly in accordance with their intrinsic value, measured by the rupee, after the manner shown in the subjoined Table. That the currency notes-expressed in pounds sterling-had better be exchanged for new rupee notes, &c. That, if thought necessary, a clause might be introduced into the proposed new Currency Act, removing all doubt as to the coins in which the old notes are redeemable, &c. That reasonable notice should

be given to the public before compliance with the old Act be enforced-if that be determined upon -or before a new Act be brought into force, if that alternative be adopted. That in the event of resorting to a rupeo currency it will be necessary

to consider how far the copper or bronze coins now current in the Island can be utilized; or whether it will be more desirable to provide new cents, and sub-divisions of the cent, to issue in If so, provision exchange for the old coins? should be made in the Act accordingly.

October 7, 1871.

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It might perhaps save much trouble and cor- respondence if the Colonial Office were to have a Draft Order in Council framed in this country, by some one experienced in such work, embodying what the Home Government would be prepared to approve, and send it out for the consideration of the Governor and Council of Mauritius.

Supposing the rupee of the Indian Govern- ment (weighing 180 grains and of H fineness) to become the standard currency of Mauritius, with-

out demonetizing English and Foreign coins and tokens, now received as legal tender in the Island, it is suggested that the following form of rating, or expressing the relative current value of the several coins, in rupees and cents, might be adopted:

Rapec

*-

Silver Coins.

Fla. C.

0 100

Half-rupee.

0 50

Quarter-rupee

0 25

Eighth of a rupee.

0 121

Colonial dollar

2 13

French 5-franc piece

2 13

Legal tender to any extent, pro- vided the coin shall not have lost

more than 2 per cent. in weight Legal tender for fractions of a rupee only, and so long as the coins are not defaced or the impressions thermon obliterated by abrasion. Legal tender to any amount, not having lost more than 2 per cent. in weight.

Gold Coins.

Ra. c.

English sovereign, whether made in England or Australla Half-sovereign

10 66

5 33

Silver Tokens.

R.. c.

English.-Crown

2 50

Half-crown

1 25

Florin

1 0

Legal tender for any sum not ex-

ceeding 20 rupees.

So long as the coins are not defaced

Shilling ・・

0 50

Blxpence.

0 25

or the impressions thereon oblite- rated by abrasion.

Fourpence

0 16

Threepence

0 12

Frenob.-Two-freno pieces.

0 85

Legal tender for any sum not at-

ceeding 5 rupeos.

Ona-franc

0 421

0 20

Half-tranc

Copper and Bronze Tokens.

Ra, c.

English.--Penny

0

Halfpenny

0 2

Parthing.

0 1

Legal tender for any matt not ex. oeeding the half of ons rupes.

Half-farthing

0 01

N.B.-Any other coins now current in the Island, which it might be com. valent to retain, might be added.

There is no pretence to give, in the foregoing Table, the exact values of the several coins proposed to be made legal tender to an unlimited extent; the object being simply to show in what manner the relative values of all coins may best be