CO882-(6-8) — Page 125

Mr. Barr

60

MINUTES OF EVIDENCE:-COMMITTEE ON STRAITS SETTLEMENTS CURRENCY.

because Governments have not looked to the whole of Rebertson. their duties. I consider it simple enough. The question is why should you rely on a bank manager in London £7 Jan. 1903. to carry out everything in connection with adding to the currency of the Straits when the fact is before everybody at Singapore every day as to what the rate is? What benefit is it to have from a far country gold in order to take rupees out of the currency reserve, adding so many rupees to the currency, and afterwards getting rid of the gold for other rupees? That is the whole effect it would have on the circulation.

2103. But I do not know who would keep the Govern ment up to the mark 1-Any bank will keep them up to the mark if they give them a commission on the transaction; they know the point at which it will pay to do it.

2104. Then you throw it back really on the banks to

do it ?—I did not really consider that that was anything more than a detail.

2105. It is an important detail, for which we have no precedent. In India the case is met by the automatic device of giving rupees to anybody who will bring gold 1-At the same time the banks and the bullion dealers decide whether the Indian Government should do so, and by tendering gold compel them to hand out the rupees. I leave out the fact that gold is legal tender; consequently the real effect is to get so many more rupees added to the currency. It seems to me that this plan of dispensing with actual gold has never been adopted because there has really been a sort of prejudice; the phrase "tampering with the currency has been in everybody's mouth from time immemorial. The people do not consider that they are allowing banks to do what they think the Government could not do. I say it is a detail done every day of the week by the banks connected with the East.

"

+

•

[ 61 ]

APPENDICES.

།། ་། ། ། །

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

7

PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

6849.

I