be noted that there existed an alleviating circumstance in the curious contrivance by which the mohur and the rupee, though unrelated to each other, bore a fixed ratio to the _dam_, the copper coin of the Empire.⁸ So that it is permissible to hold that, as a consequence of being fixed to the same thing, the two, the mohur and the rupee, circulated at a fixed ratio. ¹ Cf. W. C. Mitchell. “The Rationality of Economic Activity,” _Journal of Political Economy_, 1910, Vol. XVIII, pp. 97 and 197; also “The Rôle of Money in Economic Theory,” by the same, in the _American Economic Review_ (Supplement), Vol. VI, No. 1, March 1916. ² For the whole of this discussion, cf. H. J. Davenport, _The Economics of Enterprise_ (1913), Chapters II and III. ³ Prinsep, J., _Useful Tables_, Calcutta, 1834, pp. 15–16. ⁴ Robert Chalmers, _History of Colonial Currency_, 1893, pp. 336, 340. ⁵ Dr. P. Kelly, _The Universal Cambist_, 1311, p. 115. ⁶ _Money and Mechanism of Exchange_ (1890), p. 95. ⁷ Dr. P. Kelly’s view is that they circulated at their market ratio (_loc. cit._). On the other hand, Sir R. Temple says: “In ancient and mediaeval India the relative value of the coins of each metal was fixed by the State, and all were legal tender virtually without any formal limitation” (“General Monetary Practice in India,” _Journal of the Institute of Bankers_, Vol. II, p. 406). On another occasion he said: “The earliest Hindu currency was in gold with a single standard. The Mohammedans introduced silver, and in later times up to British rule there was a double standard, gold and silver” (_ibid._, Vol. XV, p. 9). In contrast to this it may be noted that the Preamble to currency Regulation XXXV of 1793 and other currency Regulations of early date make it a point to emphasize that under pre-British régime there was no fixed ratio between the mohur and the rupee. ⁸ Cf. Prof. S. V. Venkateswara, on “Moghul Currency and Coinage” in the _Indian Journal of Economics_, July, 1918, p. 169; and F. Atkinson, _The Indian Currency Question_ (1894), p. 1. In Southern India, to which part the influence of the [pg 4] Moghuls had not extended, silver as a part of the currency system was quite unknown. The pagoda, the gold coin of the ancient Hindu kings, was the standard of value and also the medium of exchange, and continued to be so till the time of the East India Company. The right of coinage, which the Moghuls always held as _inter jura Majestatis,_⁹ be it said to their credit was exercised with due sense of responsibility. Never did the Moghul Emperors stoop to debase their coinage. Making allowance for the imperfect technology of coinage, the coins issued from the various Mints situated even in the most distant parts of their Empire¹⁰ did not materially deviate from the standard.