The following table gives in £ million the gross circulation of currency notes on March 31 of each year:— £ million. £ million. 1900 19 1909 30½ 1902 21 1910 36½ 1904 25½ 1911 36½ 1906 30 1912 41 1908 31½ 1913 46 The following table gives the average monthly gross circulation in £ million (at 1s. 4d. the rupee throughout):— £ million. Five years ending 1880–1881 8½ ” ” 1885–1886 9½ ” ” 1890–1891 11½ ” ” 1895–1896 19 ” ” 1900–1901 17½ ” ” 1905–1906 24 ” ” 1910–1911 32 The year 1911–1912 38 10. The rules governing the reserves which must be held against currency notes are very simple. A certain fixed maximum, the amount of which is determined from time to time by law, may be held invested, chiefly in Government of India rupee securities. Up to 1890 the invested portion of the reserve amounted to 600 lakhs (Rs. 600,00,000). This was increased to 700 lakhs in 1891, to 800 lakhs in 1892, to 1000 lakhs in 1897; to 1200 lakhs, of which 200 lakhs might be in English Government securities, in 1905; and to 1400 lakhs (£9,333,000), of which 400 lakhs (£2,666,000) might be in English securities, in 1911. The interest thus accruing on the invested portion of the reserve, less the expenses of the Paper Currency Department, is credited to the general revenues of the Government under the head “Profits of Note Circulation.” This interest now amounts to £300,000 annually. Up to 1898 the whole of the rest was held in silver coin in India. Under the Gold Note Act of 1898 the Government of India obtained authority to hold any part of the metallic portion of the reserve in gold coin. An Act of 1900 gave authority to hold part of this gold in London; but this power was only intended to be used for purposes of temporary convenience, and, although some gold was held in London in 1899 and 1900, this was not part of a permanent policy. An Act of 1905, however, gave full power to the Government to hold the metallic portion of the reserve, or any part of it, at its free discretion, either in London or in India, or partly in both places, and also in gold coin or bullion, or in rupees or silver bullion, subject only to the exception that all coined rupees should be kept in India and not in London. The actual figures, showing where the gold reserve has been held at certain dates, are given below. GOLD IN PAPER CURRENCY RESERVE (£ MILLION).