(1) By the receipts realized by the sale of drafts on London; (2) by the coinage when necessary of new rupees from bullion, purchased by the London Gold Standard Office and sent to India. The principal point of difference between the scheme of currency advocated by the Government of India on the one hand and that put forth by Messrs. Probyn and Lindsay consisted in the fact that the former proposed to establish a gold standard _with_ a gold currency, while the latter proposed to establish a gold standard _without_ a gold currency. [pg 156] To adjudicate upon the relative merits of a gold standard with a gold currency and a gold standard without a gold currency, the Secretary of State appointed another departmental Committee, under the chairmanship of Sir Henry Fowler. After taking a mass of important evidence, the Committee observed²⁶⁸:— ²⁶⁸ Report of the Committee appointed to inquire into the Indian Currency, P.P.C. 9390 of 1899, p. 15. “50. On this scheme [of Mr. Probyn] we remark that, while bullion may be regarded as the international medium of exchange, there is no precedent for its permanent adoption for purposes of internal currency; nor does it accord with either European or Indian usage that the standard metal should not pass from hand to hand in the convenient form of current coin. No real support for such a scheme is to be drawn from the purely temporary provisions of ‘Peel’s Act’ of 1819, whereby, for a limited period, the Bank of England, as a first step to the resumption of cash payments, was authorized to cash, in stamped gold bars, its notes, when presented in parcels of over £200. Little or no demand for gold bullion appears to have been made on the Bank itself in 1821. “53. It is evident that the arguments which tell against the permanent adoption of Mr. Probyn’s bullion scheme, and in favour of a gold currency for India, tell more strongly against Mr. Lindsay’s ingenious scheme for what has been termed ‘an exchange standard.’ We have been impressed by the evidence of Lord Rothschild, Sir John Lubbock, Sir Samuel Montagu and others, that any system without a visible gold currency would be looked upon with distrust. In face of this expression of opinion, it is difficult to avoid the conclusion that the adoption of Mr. Lindsay’s scheme would check that flow of capital to India upon which her economic future so greatly depends. We are not prepared to recommend Mr. Lindsay’s scheme, or the analogous schemes proposed by the late Mr. Raphael and by Major Darwin, for adoption as a permanent arrangement; and existing circumstances do not suggest the necessity for adopting any of these schemes as a provisional measure for fixing the sterling exchange.”