different centres to avoid internal exchange, and the Government be obliged to move funds between different centres to and fro lest it should have to suspend cash payments. To undertake resource operations on such a vast scale between such distant centres when facilities for quick transport were so few was obviously impossible,¹¹² and the Government therefore decided to curtail the encashment facilities of the notes it [pg 58] issued. For the purposes of the paper currency the Government divided the country into a number of circles of issue, and each currency circle was further subdivided into sub-circles,¹¹³ and the notes issued bore on their face the name of the circle or sub-circle from which they originated. Notes issued from any agency of issue situated in the territory comprised within a circle of issue were not legal tender in the territory of any other currency circle, nor were they encashable outside their own circle. Nay more, the notes issued from sub-circles subject to the same chief circle were legal tender in one another’s territory, but were not encashable except at their office of issue or at the issue office of their chief circle. The sub-circle notes could thus be cashed at two places, but the notes of the issue office of the chief circle, though legal tender in the entire territory covered by it, were encashable nowhere except at its own counter, not even at any of its own sub-circles.¹¹⁴ This want of universal encashability, though it saved the Government from the possibility of embarrassment, proved so great a hindrance to the popularity of the notes that it may be doubted whether the paper currency could have made a progress greater than it did even if the lowest denomination of the notes had been lower than it actually was. ¹⁰⁹ For a clear and concise sketch of the organization of the paper currency in India, _see_ the Note of the Government of India in the Report of the U.S. Director of the Mint, Washington, 1894, pp. 231—33. ¹¹⁰ Sec. 3 of Act III.