INDIAN EXCHANGE.

Taranaki Daily News, 5 February 1920, Page 5

INDIAN EXCHANGE.

THfi VALUE OF THE RUPEE. By Telegraph.—Press Assn.—Copyright. Received Feb. 4, 1.30 p.m. Bombay, Feb. 3. The report of the Indian Exchange and Currency Committee states it is unlikely that Indian trade will be permanently injured by fixing the exchange at a high rate. The committee recommend that the present rupee should remain unchanged in weight and fineness, and that it be placed on a gold basis with a parity of ten rupees to a sovereign. The committee consider that if the price of silver Tises beyond the aforesaid gold parity the Government should even be prepared to buy silver for the rupee coinage at a loss, rather than allow the convertibility of the note issue to be impaired. The Secretary for India decided to adopt the recommendation concerning the gold parity, but as regards a further recom-v mebdation that the import and export of goto should be freed from Governmen control, it has been decided temporarily to retain control over the export of gold, and during the transitional period the sovereign will remain legal tender at the present rate of fifteen rupee 3 to one sovereign.—Reuter Service.

[A departmental committee, which inquired into the effect of the war on Indian currency, recommended stabilising the relation of the rupee to gold at ten to the sovereign, retailing the rupee's present weight and fineness, restoring the exchange value above bullion value.] „