“that on special occasions and in particular transactions it might be a great advantage to the mercantile community to know that gold could be made available as money at a fixed rate. If, on the other hand, at the rate fixed gold did not enter into circulation it would prove that silver, with a secure and convertible paper currency, gave perfect confidence and answered all the wants of the trade and of the community, and the enactment would remain a dead letter and be perfectly harmless.” But there is no doubt that Mr. Laing looked upon it as an easy means of making a transition to the gold standard. In his Minute on Currency and Banking, dated May 7, 1862, he wrote: “The object of this proviso was simply to leave the door open for cautious and tentative experiments with regard to the future use of gold. The importation of gold already exists and is increasing, and the metal is much appreciated by the native population as generally to command a premium. … Thus, after a time, if the use of gold becomes more general, and its value more fixed, some further step might be taken.” [pg 41] And such seems to have been the impression of the Secretary of State at the time, for he understood the force of the recommendation in favour of issuing notes against gold was that it would “effectually contribute to the introduction of a gold currency in India.”⁷⁸ ⁷⁸ Par. 59 of the Secretary of State’s Despatch, No. 158, dated September 16, 1862. But whether conceived as a relief to the mercantile community or as an avenue for introducing a gold currency the proviso was not put into effect. The Secretary of State objected⁷⁹ to any action being taken with regard thereto. In the meantime the paper currency did not prove the panacea it was avowed to be. The extent it reached and the economy it effected were comparatively insignificant. ⁷⁹ _See_ par. 64 of his Despatch, _supra_. TABLE VI _Extent and Economy of Paper Currency_