The Committee preferred the scheme of the Government [pg 157] of India, and outlined a course of action to be adopted for placing it on a permanent footing, which may be stated in the Committee’s own language as follows:— “54. We are in favour of making the British sovereign a legal tender and a current coin in India. We also consider that, at the same time, the Indian Mints should be thrown open to the unrestricted coinage of gold on terms and conditions such as govern the three Australian branches of the Royal Mint. The result would be that, under identical conditions, the sovereign would be coined and would circulate both at home and in India. Looking forward, as we do, to the effective establishment in India of a gold standard and currency, based on the principles of the free inflow and outflow of gold, we recommend these measures for adoption.” These recommendations were accepted by the Secretary of State,²⁶⁹ who decided that ²⁶⁹ _See_ despatch dated July 25, 1899, No. 140 (Financial), C. 9421 of 1899. “the policy of keeping the Indian Mints closed to the unrestricted coinage of silver shall be maintained,” and called upon the Government of India as soon as it deemed expedient to “take the necessary steps for making the British sovereign a legal tender and a current coin, and make preparations for the coinage of gold under the conditions suggested by the Committee.” The first recommendation of the Committee was given effect to by the Government passing an Act commonly called the Indian Coinage and Paper Currency Act (XXII) of 1899. That Act made the sovereign and half-sovereign legal tender throughout India at the rate of Rs. 15 and Rs. 7½ respectively, and authorized the issue of currency notes in exchange for them.