The second plan for the introduction of a gold currency was that of Colonel J. T. Smith, the able Mint Master of India. His plan was avowedly a remedy for the falling exchange.²⁰² The plan was set forth in the first essay in his brochure, _Silver and the Indian Exchanges_,²⁰³ and may be described in his own words as follows:— ²⁰² He had previously taken part in the agitation for the introduction of a gold standard in India during the sixties with the sovereign as the unit. But that was as an advocate of the movement for uniformity of international coinage. Cf. his _Remarks on a Gold Currency for India and Proposal of Measures for the Introduction of the British Sovereign_, etc., etc., London, 1868. ²⁰³ London, Effingham Wilson, 1876. “6. Although it cannot be denied that the difficulty of effecting this object of restoring the Indian exchange to its normal condition is much greater now than it would have been some years ago, owing to the decline which has already taken place, yet there seems to be sufficient ground for belief that, even now, if decided measures were adopted, it would not be too late to restore the currency to its former value for home (India) payments; and that, too, without any shock or disturbance; the principal step being that of putting a stop to the coinage of silver on private account, at the same time taking measures to discourage the importation, or at the least the circulation, of foreign-made silver coins, and opening the Mints for the receipt of gold bullion for coinage. “7. To explain how this would operate, I must observe that … “8. … the internal trade of the Empire of India has increased and is increasing … “9. Whatever may be the cause, the internal trade of India has, ever since the beginning of this century, required constant and steady additions to her currency, averaging during the last thirty-eight years upwards of five millions of pounds sterling per annum in value. Besides this, the returns show that the balance of imports over exports of gold bullion, during the same period, exceeded an average of two and a half millions sterling annually, having been, during the last twenty years, more than four millions per annum. “10. Such being the case, it appears to be a necessary consequence that, if the supply of rupees were put a stop to, [pg 122] the remainder must increase in local value, as compared with commodities, till they resumed the position which they held on a par with gold, at the rate of 10 rupees to a sovereign, for the fifteen years previous to 1870.