ABSTRACT
Honourable Sir,
1st. According to your desire, I now lay before you such observations as have occurred to me on the Honourable Company’s letter No. 2 with its appendix. I shall proceed according to the order of the paragraphs that appear to me the most important. I am sure I need not intreat your intelligence on the subject so difficult and so extensive which besides the ordinary considerations of coins and money and commerce involves so many views of general policy.
2d. The court say in the commencement of their attention has been directed to the coinage chiefly from the loss sustained by the recoining of Dollars into sicca rupees in the Calcutta mint, which loss they state whether it be by a loss of Silver from the operation, or by a loss from the expenses exceeding the profits of the mint.
3d. Paragraph 8. It is perhaps impossible now to determining that the two coins issued from the Moghul mints were uniformly of one weight. Although in them all the rupee is now called a Tola or one sicca or Ten Alassa [Massa]; yet the weight of the sicca rupee differs in every mint derived from the Moghul government. That method of determining the smaller weights of which the Tola is composed is very far from accurate as a generally use the seeds of the Abrus for them. From these inaccuracies the deviation in time has been considerable every mint supposing that it alone keeps to the standard.
It would no doubt be simpler with regard to the English to adopt will 180 grains instead of the number of grains composing the Tola in different mints, but it must be remembered that this is not the case with regard to the natives missed their Tola is now an exact weight made generally of brass or Silver and no deviation from it can be authorized without some inconveniency. On this size rate the natives of every in the mint make their calculations and to it the importers of bullion or the traders from the Persian Gulph, the Red Sea, or other parts constantly refer.
The inconveniency of altering this Tola ever selected, is of some consideration, but I have no doubt that a little time would get over the slight suspicion and uneasiness that the change would in the first instance produce. Of these facts we are pretty sure from some recent circumstances and this place.
4th. Paragraph 9. The use of a copper alloy for gold would certainly produce some uneasiness here, but it proper explanations and by time it would wear off. Some attempts that purpose were lately made in this mint as a specimen. They succeeded very ill but it now appears (from Mr. Hatchett’s very able report) that this was owing to the employment of improper copper.
5th. Paragraph 10. The rupee hear proposed is in all respects very near to the present coinage of this place and would not be objectable. The rupees of Guzarat, Broach, Baroda, Cambay &c. do not differ from it very much, and all might without disturbance be made equal the Shree sicca of the Mahratta states agrees with it nearly in the quantity of fine silver. These considerations are very much in favor of the proposed rupee for they show the facility of having them entirely equalized. Whatever may be the objection in Bengal where the Silver rupee differs so materially from the rupee of the rest of India, there ought to be none to the adoption here of the proposed silver coin (for comparison of the real value of rupees of many of the mints on this side of India see the Bombay calendar of this year).
It undoubtedly has occurred to the Honorable court that the depreciating the Bengal coinage by about 7 per cent is liable to all the objections that has been urged on a similar occasion by Mr. Locke in his answer to Mr. Lowndes. Mr. Locke’s assay [sic essay] is entitled to farther [sic further] considerations concerning raising the value of money in which he shews the consequences that must arise in all the contracts that subsist among individuals. Besides this, the Honourable Company seen in Bengal to have a further consideration of vast importance. I mean their bonded debt, such of the creditors as are paid in England, may have no reason but little to complain but I feel apprehensive that this might be far from the case with those were paid off in India. This is the case that no doubt the Honorable court has materially considered for the difference of seven per cent is very considerable. I need therefore enter into no explanation of my meaning; I should perhaps beg to be excused for taking any notice of a subject which can neither be overlooked or misconceived.
6th. Paragraph 15. The recommendations in this paragraph regarding a copper coin, seem very proper, like every other kind of coin, they are on ways can neither the from the circulation of this place and it is very fair that Government should have at all events some advantage from them.
7th. Paragraph 16. The people at this presidency and the southward are now much he used to coins of Gold, and in many respects prefer them. They answer better for large payments than silver, they are more easily transported or concealed and they form the material which generally compose their ornaments. Any check by Government on the circulation of Gold as a coin would certainly produce great inconvenience.
The Gold rupee proposed on this paragraph is (with a very insignificant difference) the Gold Mohur of our present coinage, and this arrangement of making the Silver and Gold rupee of the same weight and with the same alloy, has the advantage of great simplicity.
We formerly coined halves and thirds of a Gold Mohur, but we gave it up from finding that the people were apt to mistake the halves for the thirds and to be imposed on by the shroffs. The quarters besides being inconvenient for the accounts of the people were rather too small to be struck by our method. The no coined only old rupees and thirds or pieces worth 5 silver rupees. With better machinery it is no doubt that the proposed coinage would be very proper.
8. Paragraph 17. The reasonings in this paragraph are or together unexceptionable. We have known them long and the reflections to which they give rise have frequently occupied our minds. It is however very difficult to correct some evils although we feel the causes of them.
9. Paragraph 19. So far as it is possible for us to judge the gold coin has hitherto passed into the circulation here without any force on effort on the part of Government. It is most readily received by the community and whenever the amount in circulation has diminished to a certain degree the public feel the want of it and anxiously call for more. This has repeatedly happened of late years.
10. Paragraph 20 and 24. These are most important Paragraphs. The adoption of this proposal to requires in Bombay the utmost caution and consideration, but instead of the good that is intended, it may produce much inconvenience and very serious mischief. I many far from meaning to call in question the principle that it every country there can be but one metal which is the measure of property or as Lord Liverpool call it the principal measure of property. The question however is tilted Mr. Beatty cited whether the value of other coins is not to be determined by the public authority; let the other coins which are the representative of the coins which are the principal measure are to be regulated by the value of bullion in the market and the weight and a speculation of individuals. In this part of India I have no hesitation in saying that it is absolutely necessary to fix the value of every denomination of coin by the public authority. Should it be otherwise ordered, both the Government and the people would be a prey to the shroffs in a manner fortunately unknown to us in all time past.
11. No man without considerable experience in this country can form an opinion of the influence and the arts of shroffs. They hold in their hands almost the whole specie of the country; their houses are connected in every part of India; their whole life is spent in the trade of gaining money by exchange and by every other means connected with this art. They form of the same trade from generation to generation, they are subtle and acute from long and early habit and are divided from the rest of the people, not more by their cast, then by their means of living in which they are allow none to participate. Their influence is great and extensive nor is it even in the power of Government on many occasions to protect itself against their combinations. If any denomination of the coin one left here to find its value in the market instead of being fixed by Government, it is certain that this would be done by the shroffs, as their own interest might dictate. No other part of his community would have any influence in fixing the rates for the shroffs hold in their hands almost all the specie and would-be the entire Masters of the exchange. In Europe and the people have many resources; the money of the country is there in many hands and if one class of men were disposed to be selfish and unreasonable others would be found off a different disposition who would correct or lessen the evil. If it has been thought that the leaving the value of some coins unfixed by Government would expose in Europe the people to frogs and impositions from Money Jobbers and others, how much more dreadful must the evil be in this country, where the people are more ignorant and where the Money Jobbers have been influence beyond all comparison more extensive.
The shroffs have the command of nearly all the specie or could soon secure command of it. They too would monopolize the bullion and it cannot be doubted that that whenever it was much for their interest, they would alter the values that the metals bear to each other in the market, the great loss of the Honorable Company and the ruin of individuals.
12. But this is not the whole of the objection that ought to be made to this proposal. It supposes that silver is the principal measure of property in Bombay, and that therefore the value of the gold coins may be left the discretion of individuals. Whatever may have been sometime ago the case in Bombay, it may be very much doubted I think the silver is now the principal measure of property. It is even very probable that the changes in the state of our trade have altered the relations in this disrespect of the precious metals. The value of silver from the nature of this trade is subject to very great and very certain changes which would seem to render it a very unfit substance to repreresent the value of property in general. We are in this respect in a situation very peculiar and it is necessary to understand before any judgment can be formed of our monetary system.
13. The most important branch of our trade and this is a trade that has but of late attained so great a magnitude, is the cotton trade to Guzarat. The whole of this cotton is imported by the merchants of Bombay for the market of Canton, and it may annually amount to the sum of above 40 lacs prime cost (say there go annually but 80,000 bales or 40,000 candies of cotton to China, and the prime cost per candy of 100 rupees). This is under the truth. Besides this cotton that is also a date or a greater amount imported from Guzerat in grains and goods. In return for all this we have but very few articles to send them. I believe that the chief of them are metals or clothes from Europe, and silk and sugar from China, but the whole of the goods that weakens and is much inferior in value in comparison to what we receive. The Bombay merchants are therefore under the necessity of providing silver to pay for the purchase of their cotton, for gold in that country is not used as a coin, nor is it in demand to great extent. Silver therefore must be found or the much and must relinquish his trade in cotton altogether. It very often happens that the merchant has not found it possible to provide a sufficient quantity of bullion to pay for his purchases, and in that case he can do nothing better than to apply to the shroffs who give him Bills on Surat for the amount. When many of those Bills are wanted they are giving at a very unfavorable exchange, even as far as 12 per cent against the merchant — at such times he will avoid taking Bills as long as he is able and one of the first resources to which he flies is to pick up the whole of the silver money into circulation of his place. This is sent to Surat at a loss of about 1 or 1½ per cent for freight and insurance, but it affords a much more profitable remittance so far as it goes than Bills. Such at times has been the sudden and pressing demand for silver than dollars have sold here for 243 rupees per hundred page in the mint would have yielded the holder less than 220 rupees. Of late the demand for money for the armies as greatly decreased in Guzerat, and Dollars to a great amount have been imported. The consequence has been as might have been foretold, and exchange has fallen to par or nearly so with Surat, and the merchants here have founded advantageous to carry their dollars to the mint.
This is state of things however will not remain long. Cotton and grain must annually be procured and it is highly probable that the importation of silver will not keep place at all times with the demand for it. Every Silver rupee will again be drawn from the circulation of displays and sent to Guzerat, and as usual, we shall have no coins but those of gold and copper.
14. For many years past the amount of silver coin in the circulation of this place, has from the causes already detailed been quite insignificant. The troops have been great by means of gold and copper and most of the ordinary business of the place has been carried on without the assistance of silver. When purchase of silver or gold are made in Europe, the theater is so extensive that it may be impossible for any man to determining which of the two metals has altered its value with regard to other goods. The matter is very different here. We see precisely the causes of the variation; and it is a demand for silver or a particular purpose, about what this place can for the time supply.
15. One of the immediate effects of this demand for silver is to the deprive us in Bombay of all other silver coin, nor does it appear to be possible to prevent it by any regulation of Government, or by any adjustment that it is possible to make between the coins of gold and silver. When the premium on Silver becomes 6.10 or even 12 per cent compared with gold or goods, it is evident that it does not depend on causes that we can connect by any system of coinage of any precaution of Government. It is necessary to repeat that we have little or no silver coin in circulation, and that until the state of our trade is altered we are not likely to have much. Gold therefore in Bombay seems to be the only steady stand the only true measure of property. It is the only valuable metal that we have in our circulation, and by which all payments are made. To leave our gold coin to be value with by the highly fluctuating the state of silver instead of its being done by Government, would I am certain expose this society to a scene of fraud, mischief and confusion. Sorry indeed should I be to see such a proposal put in practice for evil, much evil, would arise from it.
Silver has really lost here one of the great qualities that usually attend the precious metals the straitness of their value at all times and by which they are so fitted to become the measure of value of every other kind of property.
16. Although gold as a coin has never been used in Surat or in any part of Guzerat, yet it has long been so in Bombay and its neighbourhood. Over all the coast of Malabar so connected by commerce with this place our gold coins have long circulated and every where readily received. Gold coin has been used in those countries from time immemorial, and its general circulation requires no kind of force force or assistance. The gold coin of Bombay has an extensive circulation, not only through Malabar and Canara but in the interior and more northern provinces. Like silver it is carried away from us and never again returns but it disappears gradually and insensibly from causes that appear at all times to operate, but the operation of those causes unlike to that which affects silver seems to be equable, without much increased or diminution. Of the quantity of gold that has been coined within these last 7 years, it is probable that 9/10 have already disappeared.
17. I am not convinced that any good can arise from fixing a value on one denomination of the coin only, but if they should be thought unnecessary measure I cannot have the least doubt for the reasons I have already given that the value of the coins of gold should be fixed, but those of silver are allowed to find their own value in the market. This is really what has in great measure happened without the interference of Government. When I consider the smallness of the amount of silver coin in our circulation, the extreme variation to which silver is subject in value and that gold alone is the metal or old consider the transactions in this place, I feel convinced that gold has become my general consent the measure of property and that it cannot be removed from that station without violence and inconveniency.
18. I have said already that coins of gold are received here without any interference or authority on the part of Government, and without any appearance of the tens on the part of individuals. I know of no batta that has been exacted here injurious to individuals, not to I believe that I hazard too much in affirming that since that the formation of the coinage in 1799 the Honorable Company have in no way lost a single rupee by batta or any other cause arising from their own coins.
19. That the coinage of silver after it has circulated a certain number of years seems for same reason or other to be necessary in Bengal. He processed necessity has ever existed nor has any difference being made in the value of old and new coins. Our silver coins of the circulating a great many years even half a century, in whose but little of their weight. It is supposed that no more than a single grain is worn away in that time from a rupee and perhaps even less. This observation that done minters have made to me here confirms in a remarkable manner and observation of Mr. Hatchetts in his late valuable paper on the alloys &c. &c. of gold. ‘But still it must be repeated’ says Mr. Hatchetts, ‘that the united effects of every species of friction to which the coins may be subjected fairly and unavoidably during circulation, cannot produce any other wear them that which is extremely casual and slow and such as will by no means a column for the great and rapid diminution which has been observed in the gold coin of this country.’ In India the natives are acquainted with none of the acids received which dissolve gold or silver.
20. Paragraph 23. The gold coinage mentioned in this paragraph is simple and unexceptionable. The one there is stated of 11 to 1 is precisely the Gold Mohur of Bombay by the regulation of Government in 1799. If the proportion of 15 to 1 be chosen the proposed general coinage for India (within a small fraction) the very same with the present coinage of Bombay, not only with regard to silver but gold, so that when it is adopted there may be no change in the least material even in our silver or gold. The value picks Department to our gold rupee is 15 silver rupees which is estimating gold to Silver as 15 to one. This is certainly not far from the general price in the market of the metals, as may be proved from many considerations. The rate of 14¼ to one, as a set to prevail at Madras, is undoubtedly not that of Bombay. Not an ounce of gold bullion would ever been brought to this mint for coinage at such a rate. In the year 1774 and alteration was made by Government in the Gold Mohur to make it represent 15 silver rupees as nearly as it was possible by the market prices of the two metals. In that coinage the rate of gold was to silver as 14.9 to one, and it is probable that such is extremely near to their present values in the market. The deviation from it by the subsisting regulation is but a small and so far as it goes it tends produce a greater revenue from the mint, for here we buy for coinage the gold but not silver bullion. District is arises from necessity and depends on causes, that it may be unnecessary to dwell on at present. We, however, see from our purchases of gold, that the dates of value in the metals as fixed for the coins does not differ much from their values in the market, for we seldom are able to gain more than a moderate mint duty, by the coinage of gold.
21. It certainly seems that the proposed coinage for India, would have great advantages over other present coinage of Bengal. The expenses of mint is would be diminished by the use of more annoyed and the pay of the coins would be less without taking into the account the great benefit that would arise from an uniform standard of fineness and weight.
22. As there are coins in different parts of India that can hardly be adjusted in even numbers to the rupee and gold Mohur, such as the gold or on the gold coins of Malabar, it would be of great use (should no farther alteration be thought advisable) to make those coins in future of exactly the same fineness as the general gold of silver coins of India cutting them afterwards according to the quantity of fine metal into the coins that have required. This would produce no inconveniencing [sic] as the shroffs would soon see that their value is not diminished. By being them, which is very generally in one large payments in India, their value in proportion to the general gold ore rupee would instantly appear and of any great source of fraud would be cut off even by this approximation to simplicity and uniformity.
23rd. Paragraph 30. This paragraph and goes which formulate proposed the establishment of a mint at Calcutta, and the suppression of all the mints now existing in the Company’s territories.
Paragraph 31. It is the advantages to be derived from an establishment so extensive and so complete, and most readily do I subscribe to the truth in general of those statements. We have nothing in India that can be compared in point of perfection to what this must be. It would no doubt the most expeditious in its operations and the coins would be beautiful and uniform beyond all example in this country. This proposal, however, is of great magnitude. Before it is put in execution it should be well and long considered for it may produce in this country much uneasiness and discontent and its inconveniences may overbalance in the end its advantage.
24. Some of advantages that are expected to arise from it, I confess I do not entirely agree to. I allude chiefly to Appendix No. 1 which it is losses by exchange &c. Which no system of coinage will remove and perhaps hardly in any degree the correct. This appendix appears to merit an examination in this country; but as it chiefly relates to Bengal, it is there where it ought to be considered.
25th. One of the most material objections to the plan of a general mint is the inconveniency that will arise to many classes of men on the side of India, from the want of mints in their neighbourhood. The natives sometime immemorial have been accustomed with their princes of every cost to the conveniency of mint in which they could convert their silver gold into the ordinary coin of the country. We have at this moment several mints to the northward which were established in ancient times. Those are the mints of Surat, Cambay, Broach, and Baroda. In all of these mints declined rupees which it differ somewhat in value. This in the rich and populous country of Guzerat where many transactions are carried on daily to a vast amount must produce much loss and inconvenience to individuals and much gain to the shroffs. This in the quantity of value in the rupees off neighboring districts gives rise to a thousand speculations in a change in which neither individuals nor the government itself and at all times be protected from fraud, if the money of all could be equalized. The Surat rupee should be adopted for the whole or what is the same thing the general rupee as no proposed for India. The province of Guzerat would certainly afford a proof of the advantage to be expected from a general and uniform currency. In order to accomplish it, it would be necessary to suppress some of the mints, perhaps all of them but Surat. The distance between those parts is not very considerable, they are separated by civilized and highly cultivated countries not what the transport of money involve any very great risk or expense. The plan even to this extent could not be executed without opposition. The shroffs would instantly see the ill consequences of it themselves, they would alteration difficulties and excite murmurings. They would mislead the opinion of the people and although we should in the end carry the point, yet it would for a time they some suspicion and ill will.
26. I can have no doubt that a suppression of the greater parts of the mints in Guzerat would produce a temporary inconveniency in the weight I have mentioned, but if the people were farther gold that they were to have no mint at Surat, not even at Bombay, I cannot calculate to what length the general discontent might proceed. I daily think that such a measure in those rich and commercial countries would produce much ill will and suspicion towards this British Government. Interested individuals would blow the flame of discontent and the people at large accustomed to Government far from paternal would image to themselves 1000 evils while they would give no credit to our good intentions. The best, the most beneficent and the wisest schemes will here be received with distrust nor can it be removed but by long time and example.
27th. It must however be acknowledged that the holders of bullion on the side of India, would have very real cause of complaint from the suppression of all our mints. The fair trader and even the calculator would find his trade injured and his profits diminished. Suppose for instance (as is the case in a thousand situations) that they send or their crops for silver or gold brought from the interior of India, from China or the Red Sea or Persian Gulph. This silver and gold is in ingots or dollars or in the form off foreign coins. To render those metals as much as possible production to them they frequently turn them into the coin of the country. If they can no longer do this a part of their value is instantly lost. The metals can no longer answer the whole of the purposes on which their value depends. Loss and disappointment to a certain and even to a considerable extent must arise and a diminished degree of the general prosperity of the community must be the consequence.
28. In Paragraph 35. The Honourable court has foreseen the objection just stated to the plan of a general mint, and in order to obviate as far as they can’t any loss on that account to the bullion holders on the side of India, they say ‘on distance of the common to Madras and Bombay to become the purchasers of all bullion tendered [to] them, paying for the same in cash or in Bills on Bengal at a weight to preserve the above-mentioned advantages of the Company.’
This rate is determined in Paragraph 34 in the following words. ‘By fixing a rate between dollars and the new rupees according to the fine silver in each taking care to deduct from the value of the dollars the charge for coinage with such additional amount as the expense off transit and risk may demand, yet keeping such additional charge below the amount, an individual would incur in forwarding his own bullion to the mint.’ From this it appears that the bullion holder on the side of India is to pay for the expense off transit and of risk by the Honourable Company will be subjected to the loss of interest from the time of purchase in the bullion is converted into rupees. Such other dangers of the Bengal River that that is from it alone is probably more than equal to an ill Europe voyage. Freight and insurance to Calcutta from hands is never less in the time of peace than 3½ per cent but in the time of war it is 6 and frequently more. We shall suppose at the medium that it is but 4 so that by the time the bullion comes back to Bombay in the form of rupees a lost must arise on it to its proprietors of 8 per cent. It orders not the statement whether the property remains with the original holder on whether the Company have purchased it from him. The usual what premium from hence to Calcutta is 8 per cent on a Company’s regular ship. The peace premium during the Southwest monsoon (the best season for sailing to Calcutta is 4-4½ and even 5 per cent on account of the then very great danger of the Hoogly.
From 1 to 1½ per cent is enough for freight and insurance to Surat. If the bullion holder, reside in Surat or any part of Guzerat, this loss therefore will be still greater by 2 or 3 per cent so that bullion received by merchants, manufacturers, or farmers, on the side of India would be less valuable than it is in Bengal by 8 per cent, or more, or it will be in future less valuable here it has hitherto been by 8 percent or more.
29. In Paragraph 35 The Honorable Court state that the constant intercourse between Bengal, Madras and Bombay, presents sufficient facilities for the accomplishment of this plan, and seems to leave no other impediment but that is of transit. This risk is at present necessarily seen in forwarding the supplies from one presidency to another, so that the only disadvantage to be expected, would arise from the probability of more frequent recurrence of this risk.
I believe it very seldom happens that bullion or money is sent from one presidency to another. There are better methods and without risk of managing those supplies. But if it were otherwise it seems to make nothing to the agreement. The purchase in the bullion as now proposed on the side of India will in no way assist our supplies. On the contrary it will rather diminished our means of supplying ourselves. The supplies must be made as usual to which this more can give no aid, nor to which (so far as I can understand the subject) it can have no relation. If we do run a risk with our supplies this new this would not lighten it nor alter it.
30. Then get is much intercourse with the presidencies by Sea is very true, but for many causes this intercourse is extremely regular. A ship at particular season may reach Calcutta from Bombay in three weeks, but in no different monsoon the passage is three times as long and advance as tedious as a voyage to Europe. The same thing is true with regard to Madras, which at a certain season of the year is inaccessible to ships altogether. Before bullion therefore could reach Bombay or Guzerat, after its conversion into rupees, in the Calcutta mint, there can be no doubt but that a period of 8 months would occasionally intervene, even if ships were sailing every week between those ports. The truth is that there may sail from Bengal annually to Bombay 15 or 20 vessels and those rate for a favourable time of the monsoon, but during the remainder of the year opportunities for transporting treasure by Sea very very occur. The Honourable Company did for suffer a great loss by the loss of interest on this plan which could not be managed without much difficulty and delay.
It is supposed by some that the risk to the Honourable Company would in such a case be less than to the private merchant. This may be the case in a certain degree where they can employ their own ships but the nature of this scheme will make it necessary to take such as offer, or opportunities by their own ships very seldom occur. It is therefore very certain that the loss of interest of the Company would be an object of great consideration.
31st. I have hitherto spoken only of the natives of this country, and I have shewn what I think would be their sentiments on the suppression of the mints on the side of India. I am convinced they would look on it as an unprecedented grievance which would lessen the value of their bullion, and by that means diminish their means of living whether that may arise from agriculture or trade. So far as I know the use of their mints has never yet been denied to the inhabitants of this country by its various conquerors. I have had nothing of what I suppose the effect of it would be on the European merchants, or we can very well defend their own causes and I doubt not will be ready to complain. The measure to them too I believe would be very injurious and very odious.
32. If the British territory extended all the way from the side of India to Calcutta and if through the whole of it one general coinage one in circulation, I should see less objection to this plan than I do at present. Divided as the now are not only by an immense space but by countries over which we have no authority on which may be hostile to us, we are in a state so secluded that he must now depend at times on our own internal means. So situated, it will be perfectly easy for the shroffs who have nearly the whole of the money of the country in their hands to produce whenever it suited their purposes, the scarcity of it, or a good at pleasure by combination with each other in these the value of gold in proportion to Silver or Silver to gold. By such means that could easily expose the Honourable Company or the public through prodigious losses, and more especially in the coins of one of the precious metals were left unfixed by the public Authority, as I have before said.
33. I shall mention but to one bad effect more that would arise from the adoption of this measure. The natives would certainly as the last resource send their bullion to be coined in the Mahratta mints in their neighbourhood, and we should be overwhelmed by a base coinage. This constantly takes face to a certain degree even at present, when they have not the same motives for it. Much business is always done by this foreign coinage and great frauds are committed by means of it on individuals. The inscription on those rupees shews the mint in which they were struck, yet their value varies to a prodigious degree and individuals are often exposed to fraud. Although this foreign coin is not a legal tender of payment yet from custom it is received according to its probable value and a force a medium for many commercial transactions.
34. I have thus given, according to the best of my judgement, my opinion of the bed effects that would arise from stopping the coinage in all the mints on the side of India. I look on such a measure and great apprehension. The good that it could produce cannot be very material, the evil may be very great. It is the occasion loss and inconveniency to many individuals and most sincerely should I lament the adoption of so hazardous an experiment. What our change is made which they materially effect the natives of this country should be long and well considered for even those who know them best, cannot calculate the consequences in every case. If it is resolved, however, that this measure shall be finally adopted, I have only to recommend that it will be casually done. We shall thus see how it may be born before we do any mischief. For instance, it might certainly right to stop several of the mints of Guzerat. Let them all then be suppressed but that of Surat. That mint with the mint at the presidency may be sufficient for the conveniency of individuals in our territories on the western side of India. I can advise how nothing farther than this, for there ought to be one mint Guzerat. If, however, the experiment must be carried farther let in the next place the Surat mint be closed and finally that of the presidency. We shall thus gradually see the effects leave produce nor involve ourselves in evils which it may be difficult to remedy. The mint and this presidency and that of Surat should I think always remain and a system of check sufficient for our purposes might be established for the two mints not much more expensive, that one of them only would demand.
35. It is needless for me to observe that conclusions drawn from Great Britain we in any cases but ill apply to this chose vast country. The transit of money from any part of Great Britain to another the assay, expeditious, and cheap. The distances are insignificant, and a need neither pass by see note to hostile nations. One of our sentiments in India is not more accessible to another than America is to England, and after all the facilities of communication that we have created or shall ever be able to create, they must have been the regard to each other many of the inconveniences that attend the connection of distant, and even, or foreign countries.
36. Before concluding this paper it may be proper to shew the Honourable court, the actual estate of our coinage and Bombay, since the establishment that was formed in the year 1799 and the material changes that were then adopted. Before this the state of the coinage was very faulty and the regulations for this mint far from sufficient to preserve the regularity in the coinage. The Surat mint was much worse managed so that government as well as the public were exposed to the losses and frauds that must always attend an uncertain state in the value of the coins. For these facts we made at present refer to them short history of the coins of Surat and Bombay drama sometime able by all of the Honourable the Governor. The Bombay mint was then an annual loss to Government.
37. By the abolition of 1799 the value between Silver in Gold was fixed in the coins at 15 to 1. The weight of the gold and Silver rupee was made equal (179 grains each) and the alloy in both to us altogether to be the same or 8 parts in hundred of the mass. Fifteen of these Silver rupees were ordered to pass for one of the gold rupees. This is a very simple estate of the coinage, and in every respect very convenient and it is within a mere fraction of what is now proposed by the Honourable Court, for the general currency of India.
38. The duty is collected on this coinage and the mint is 3 per cent from which it is expected that the whole of the mint charges would-be defrayed and that besides some revenue would be derived to Government. It has always been the practice in this country in the native governments, to derive a certain revenue from the mint, and if this is done to a moderate extent, it appears to meet perfectly right that the Honorable Company should assume the same privilege. It will be felt by no individual, and it is as much sanctioned by practice and time and the opinion of men, as the duties at the custom House. The expectations that were formed on this head have not been disappointed for besides defraying the whole charges of the mint, a considerable gain has arisen from the duties to the Honorable Company.
39. In appendix No. 1 of the Honorable Court’s letter, a loss is stated on the Bombay mint of rupees 24,000. This is the expense of the mint annually; but the game by the duties have on the whole considerably exceeded it, as will appear clearly to the court by a reference to the statement sent to them on that subject in the year 1805. It is probable that this statement had not arrived been Appendix No. 1 was prepared or again would have clearly appeared instead of a loss. The pleaded that has elapsed since 1799 has been one of the least favorable to the mint that can occur; from war and other causes. If with such disadvantages the expenses of the mintage have been wholly paid besides a considerable gain, we have reason to hope that it will be still better in more favorable times.
Some revenue has also arisen from the Surat mint besides paying its expenses which it would be freer to a to the account of the Bombay mint, another control of which it is placed to a certain degree by Government, and from which connected as they are in all respect’s eight is impossible to separate it.
40. We are very far from thinking that the state of our coins on the regulation of our mint can be compared to that of his Majesty. We will know our inferiority but they still think we have attained a certain degree of perfection by which the chief ends of a coinage are accomplished in the wealthy community.
The principal European servants in the mint are a mint Master and Assay Master. The first of those officers receives and keeps the bullion &c. brought to the mint and issues it after a coinage. The Assay Master inspects the coins that I struck and data mines in all doubtful cases the true value of bullion or coins brought by individuals. The more together make purchase of Gold guided by the market prices in conjunction with the quantity of fine Mandel contained in each bullion or coins as are offered them. Last of all there is a mint contractor whose station is very important. He exists the alloy from the foregoing estimates and fabricates the coin.
41. The rate and material imperfection of our coinage is undoubtedly its from [sic form]. The degree of fineness and the late and is really we regulated so as to answer every good purpose in this country. The native mint contractor and some of his people can assay gold with the nitrous and with great exactness and the assay of Silver with lead is universally practiced. Many of the native’s are accustomed to work during their whole lives in the precious metals. The mint contractor should always be a man of character and he is authorized to find security in a large sum of money for the faithful discharge of his duty. Any coin from his mint being found off a better quality even after its abolition would subject him to see their penalties and this is a great source of security very weekend neither have that assistance not that extensive system of Jack that is so much to be admired in his Majesty’s mint. If the hats of the mint’s are to your there can be little desktop excessive fraud but much depends on their character we should be such as to satisfy the public mind. No scale of knowledge nor any Jack that began establish will ever make up for want of this kind.
There is no doubt but that the form of the coin is an important requisite although not the most essential. We have occasionally head falls coin is but not to a material amount from the facility off imitating cover simple operations. This nothing can correct what the mechanism of Europe, and with the assistance of eight we should at once attained a state of perfection in our coinage very sufficient for all of our purposes.
42. It is father but they have observed that says that abolition of 1799 neither the Company nor individuals have lost a rupee by our coins in any made what ever.
The loss of fine silver in our mint is moderate of the refining dollars to our standard, and making them into rupees a loss of Silver is sustained of no more than 44/100 or one per cent and is to taking dollars by tale and not by weight.
We have had no lost a batta nor recoinage nor do I know that loss has been incurred by any other means.
43. I have now given according to my conscience and do the best of my judgement is my opinion of this important, extensive, and very delicate subject. I may be long in some of my sentiments, but I have been influenced by no motive but the benefit of the public, and in this I cannot be mistaken.
