CO129-446 - Others & Individuals - 1917 — Page 249

245

the Collin

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I don't see at present in you

}

is mil.

going to put the Banks

But yo formulati

sulam fo

in (Codis from

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Scheene if you latte of

won't forget. but though

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pish thick of the Bank of Ht King

blomme MM. 19.9

Sir G. Fiddes

Please see my letter to Mr.

Lucas of today. It explains how I propose to

proceed in the matter of the Bank's 15

illions.

I will remember about Sir O. Addis. I

think however we oan work the scheme so as to hit

the Bank quite lightly and they are interested

in India too). The excess note issue at any

rate must be a nuisance and expense to them.

Mr Gleis

Arc

20.9.17

I won't continge at this stick,

A key to the la

though

you propone to like the Banker elves;

Tell it to India at 433 par 13 ; & replace it lessons.

Ar. 2019

Sir G. Fiddes

If we send our (or other people's }

dollars to India and invest the proceeds in

rupee securities by payment there for the seou-

rities, I do not see how we could ask the

Govt. of India to give us more rupees in exchange

for them than the amount of rupees they will under my proposal to give us more than coin into, or rather their rupee securities

equal in value (at the market price in India

at the time of the sale) to such number of

rupees.

It is quite clear that under present con-

ditions payment in India is quite different

from payment elsewhere. I cannot say therefore

at what price in sterling we could be held

to be selling our dollars. It depends on how far

the artificial measures of the Govt. of India

are succeeding in keeping the rupee in India

below its intrinsic value as silver.

To safeguard ourselves against the

disadvantages of continued artificiality in

the currency position of India, I would pro-

pose to ask 1.0. to give us a guarantee that

within two years of the end of the war they will,

if so requested by us, give us in exchange