The Problem of the Rupee, Its Origin and Its SolutionAmbedkar, B. R. (Bhimrao Ramji)
History
The Problem of the Rupee, Its Origin and Its Solution
Ambedkar, B. R. (Bhimrao Ramji)
Currency question -- India
efforts had succeeded in establishing a stable ratio by making gold
legal tender.²³⁵ All these guarantees the Government of India had
offered in a pathetic faithfulness to the cause of bimetallism, on the
success of which it had depended so much. Consequently, when the
attempt failed, the disappointment caused to the Government of India
almost broke its heart. It is nut too severe to say that the part
played by the British authorities in causing this disappointment was
highly irresponsible—one might almost say wicked. They forced India
against her declared wishes to keep to the silver standard, partly to
trail her off from [pg 142] making any demand for gold, and partly to
silence the criticisms of other nations that Britain was not taking her
share in the matter of rehabilitating silver.²³⁶ This was not the only
advantage exacted from a country bound to obey. On the one hand it
restrained the Government of India from taking any independent line of
action in the matter of currency reform, and on the other such means as
were calculated to make good the losses which arose from a depreciating
currency were subjected to Parliamentary censure. The House of Commons
was twice moved, once in 1877 and again in 1879, to resolve that the
Government of India should lower its tariff, ostensibly in the interest
of free trade, but really in the interests of relief to the depressed
condition of Lancashire. The consequence was that the Government could
not tap one important source of its revenue in times of its greatest
adversity. The only adequate recompense the British authorities could
have made to a Government so completely paralysed by their dictations,
and of whose interests they so loudly claimed to be the lawful trustees,
was to have consented to join the bimetallic union, the consummation of
which only waited upon their grace. But, as is well known, they did
nothing of the kind, so that, after a period of enforced waiting and by
no means unavoidable suffering, the Government of India, at the end of
1893, found itself just where it was at the beginning of 1878.
²³⁰ P.P.C, 3229 of 1882, p. 33 _et seq_.
²³¹ _Ibid._, p. 37.
²³² Dated February 2, 1886, _see_ C. 4868 of 1886, p. 5 _et seq_.
²³³ Cf. the despatch of September 4 1886, App. II to the _First Report
of the Royal Commission on Gold and Silver_, 1886.
²³⁴ Cf. the evidence before the Gold and Silver Commission of 1886 of
Mr. S. Smith, Q. 4,825–30; also of Mr. Watney, Q. 9,427.
²³⁵ Cf. _The Report of the Indian Delegates_, p. 12.
²³⁶ Cf. the speech of Mr. Goschen at the International Monetary
Conference of 1878, Third Session. Report of the American
Delegates, Senate Executive Document, No. 58, Forty-fifth
Congress, Third Session, Washington, 1879, pp. 50–52.
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