┌───────────┬───────────┬────────────┬────────┐ │ March 31. │ In India. │ In London. │ Total. │ ├───────────┼───────────┼────────────┼────────┤ │ 1897 │ nil │ nil │ nil │ │ 1898 │ ¼ │ nil │ ¼ │ │ 1899 │ 2 │ nil │ 2 │ │ 1900 │ 7½ │ 1½ │ 9 │ │ 1901 │ 6 │ nil │ 6 │ │ 1902 │ 7 │ nil │ 7 │ │ 1903 │ 10 │ nil │ 10 │ │ 1904 │ 11 │ nil │ 11 │ │ 1905 │ 10½ │ nil │ 10½ │ │ 1906 │ 4 │ 7 │ 11 │ │ 1907 │ 3½ │ 7 │ 10½ │ │ 1908 │ 2½ │ 3½ │ 6 │ │ 1909 │ nil │ 1½ │ 1½ │ │ 1910 │ 6 │ 2½ │ 8½ │ │ 1911 │ 6 │ 5 │ 11 │ │ 1912 │ 15½ │ 5½ │ 21 │ │ 1913 │ 19½ │ 6 │ 25½ │ └───────────┴───────────┴────────────┴────────┘ DISTRIBUTION OF RESERVE, MARCH 31, 1913. Rupees £11,000,000 Gold in India 19,500,000 Gold in London 6,000,000 Securities 9,500,000 —————– £46,000,000 =========== 11. Gold was originally accumulated in the reserve in India through the automatic working of the rule by which rupees could be obtained in exchange for sovereigns. After exchange touched par in 1898, we see from the above table that gold began to flow in. When in 1900 the accumulations reached £5,000,000, attempts were made, in accordance with the recommendations of the Fowler Committee, to force it into circulation.[26] After the comparative failure of this attempt, and the passing of the Act of 1905, as described above, the Paper Currency Chest in England was instituted, and by 1906 about two–thirds of the gold which had been accumulated up to that time was transferred to this fund. This stock is kept at the Bank of England, but is not included in the Bank of England’s own reserve. Gold which is thus transferred is said to be “ear–marked.” The fund is under the absolute control of the Secretary of State for India in Council, and transferences to it are, so far as the accounts of the Bank of England are concerned, reckoned as exports. Policy as to how much of the gold should be kept in London and how much in India has fluctuated from time to time. I shall discuss it in Chapter VI.