CO129-116 - Sir MacDonnell - 1866 [11-12] — Page 272

270

13.

3

bottom of page && the Report with the

will it answer their surpure"

wass="

Mon

and ending about the middle of page 4,

#

with the words "bine value", appears to be of doubtful import. If the

think they do, price of Dear Silver and Exper am never remain below their intrinsic

Commission mean, as we

that the

value, as compared with the Dollar currency them I have no hesitation in

saying

that I do not agree with them.-

What has kept Ioar Silver at its

instrinsic value on

the

last

two

years

this market for

has been the demand

remittance to India, and this

demand, as is well known, has been chiefly caused by the rates of exchange

for Drawers on India, being less favourable in Rupees than remitting Bullion to that quarter

frint

As soon as exchange rises to a point which will enable Banks to draw India at about 225 Rupees for 100 Dollars, remitters to India will elect to buy Bank Drafts, and the price of Dear Silver is pretty certain to fall to its mint value, and remain there,

(putting aside the question of Interest)

to receive

is open

as long as the Mint is open for coinage. When this happens it may fairly be expected that as long the British Dollar will be current,

as

so

more or less of the Dollar Silver which finds its way to this market, would be sent to the mint; or it might