254 Gold Currency in India. 



an exclusive standard. Without entering into a discussion of 

 the ulterior consequences of the extensive gold discoveries of 

 the last twelve years, and the future price of that metal — 

 which form important and interesting subjects of debate in 

 themselves — it may be remarked that a no less eminent 

 authority than M. Chevalier contends that the extensive em- 

 ployment of a gold coinage in France has retarded a fall in the 

 value of gold. How likely, then, that the circulation of gold 

 coins among the millions of inhabitants of India will retard it 

 still further ? 



Daring the reign of Napoleon III. gold coins have indeed 

 almost displaced those of silver, except as to the smallest de- 

 nominations of them, and thus the order of things, as compared 

 with the reign of his uncle, has been reversed. An extra- 

 ordinary exportation of silver to the East, where it has been 

 hitherto in great request, has resulted from the alteration. 

 For example, the export of silver from France in the year 1853 

 was valued at nine millions sterling; in 1854, it was more than 

 ten millions and a half; in 1855, it amounted to twelve 

 millions and three-quarters; while in 1857 it had reached 

 eighteen millions and a-half. Since that period the exports 

 have lessened in value, because the fountains whence they were 

 drawn had become comparatively dry. The adoption of a 

 gold currency in India will check this draining of silver from 

 Europe yet more effectually, and the East will naturally absorb 

 gold from Australia to supply the place of the subsidiary 

 metal, for which it previously yearned. Perhaps, indeed, the 

 masses of silver, borrowed as it were from France and, in a 

 lesser degree, from England, may flow back again, by the 

 action of the self-same law which drifted them away ! The 

 tendency of the new arrangement will inevitably be towards 

 such a restitution. 



One other reform it would be well for the Government to 

 consider, in connection with the gold currency of India, and it 

 refers to the Australian sovereign and half-sovereign. Those 

 coins will find their way to India, as a consequence of the 

 recent enactment, and they should be at once, therefore, im- 

 perialized. Their distinctive and comparatively inelegant 

 impressions render them in every way a nuisance, when inter- 

 mixed with our own gold money, and that inconvenience will 

 be found intolerable among Her Majesty's lieges in India. It 

 is not enough to make the Sydney coins simply a legal tender. 

 They should forthwith be assimilated in appearance, as they 

 are in weight, fineness, and intrinsic value, to those issued 

 from the British Mint. 



This is an essential addendum to the wise measure of 

 reform to which we have adverted, and without which that 



