[41] In the _calendar_ year 1912 India increased her stock of gold by £29,500,000, of which about £21,500,000 was in sovereigns. [42] The fluctuations in the proportions for different years of the figures in columns (4) and (5) of the table on p. 76 must certainly be explained in part by the state of the exchanges, and not wholly by the degree of deliberate preference for sovereigns. [43] The Accountant–General, Bombay, has suggested (_see_ Paper Currency Report, 1911–1912) that “the principal cause” of the heavy importation of sovereigns has been a reduction in the rate of charge (from 1/16 per cent to 1/32 per cent) for Telegraphic Transfers issued upon Madras and Calcutta against gold imported into Bombay. No doubt, this favours gold to a slightly greater extent than before, as against Council Transfers, as a means of remittance from London to Madras and Calcutta, but the difference seems too small in relation to the other factors which determine the cheapest form of remittance, for the change to have exerted any appreciable influence. [44] This corresponds to the Bank of England’s normal price for gold bullion. [45] At present notes can be issued by currency offices, but only to treasuries on the requisition of the Comptroller–General, in exchange for gold bullion at the rate of 1 rupee for 7·53344 grains troy of fine gold. Since April 1, 1907, the receipt at the Indian Mints of gold bullion and gold coins other than sovereigns and half–sovereigns has, in fact, been stopped by Government of India Notification. [46] I have, however, seen no evidence which suggests that _half_–sovereigns are specially popular on account of their lower denomination. [47] The Manager of the National Bank in the Punjab reported in 1911–1912:—“The fact of currency notes having always been unpopular throughout the Punjab and, excepting in Lahore, being cashed only at a considerable discount, has no doubt conduced to the popularity of the sovereign. A portable medium commanding its full face value was urgently required and the sovereign has for the present met the want.” [48] £6000 in rupees weighs more than a ton. [49] The Government should probably instruct its officers to receive and change notes with freedom on every possible occasion, in order to dissipate this idea. [50] See pp. 113–118 for an account of the cost of transporting bullion to India. [51] It was operative, however, in the middle of March 1913, when the whole amount offered was not allotted, tenders below 1s. 4d. being rejected; later in the month tenders below 1s. 4d. were accepted. [52] The rule is supposed to be that the extra charge for transfers is 1–32d. per rupee when the Indian bank rate is below 9 per cent, and 1/16d. when it is 9 per cent or above. The last occasions, on which the difference of 1/16d. was in force, occurred between December 1906 and March 1907. In 1904 and formerly the 1/16d. difference came into force when the Indian bank rate exceeded 6 per cent.