'REPORT ON THE ADMINISTRATION OF THE BOMBAY PRESIDENCY, FOR THE YEAR 1914-1915' [‎229r] (127/150)

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I94 ' 19I5 ' ] CURRENCV. 91 Chapter V.
FINANCIAL.
figures include the Reserve Treasury balance, which is held in notes, and the notes in the district
treasuries. Strictly speaking such notes are not in circulation. The average cross circu
lation of notes of the Karachi Circle during 1914-15 was Rs. 2-48 crores as & agalnst Rs ro
crores in 1913-14 During the year the gross circulation rose by Rs. 79-38 lakhs One lakh is equal to one hundred thousand rupees The
increase is largely accounted for by a rise in the circulation of Rs. 10,000 notes. At the
end of the } ear 1914-15) ffi e value of these notes in circulation amounted to Rs i 22’8
lakhs One lakh is equal to one hundred thousand rupees , an increase of 42^- lakhs One lakh is equal to one hundred thousand rupees over the previous year’s figure. This indicates stagnant trade,
which, in turn, means a comparatively small demand for loan money and in consequence
large balances in the banks which are usually held in the form of Rs. 10,000 notes Another
indication of stagnant trade is afforded by the fall in the value of the telegraphic transfers
between Karachi and other ciicles. The payments on account of telegraphic transfers at
Karachi amounted to only Rs. 116 lakhs One lakh is equal to one hundred thousand rupees in 1914-15 as against Rs. 301 lakhs One lakh is equal to one hundred thousand rupees in the previous
year. The figures for receipts on account of telegraphic transfer were Rs. 109 lakhs One lakh is equal to one hundred thousand rupees and
Ks. 19-2 lakhs One lakh is equal to one hundred thousand rupees respectively. fhe \alue of Bombay and Karachi notes cancelled at other
circles fell from Rs. 3-85 to Rs. 2-86 crores, but the value of foreign circle notes encashed at
Bombay and Karachi (excluding Bombay notes cashed at Karachi and vice versa) rose from
Rs. 9-58 to Rs. 13-65 crores. Thus the Presidency The name given to each of the three divisions of the territory of the East India Company, and later the British Raj, on the Indian subcontinent. and Sind received funds bv means of
notes to the extent of over Rs. 5 crores more than in the previous year.
2. The Government of India prohibited the free issue of sovereigns to the public on Gold coin.
August 5 ffi- "T his ac tion naturally exercised a considerable effect on the circulation of gold
and silver coins and of currency notes. Thus the statistics relating to the circulation of
coin and currency notes during the year under report were abnormal. As soon as war was
declared a very strong demand for sovereigns set in, but so long as the currency office
issued these coins freely, they did not go to a premium. The immediate effect of the stop
page of issue of gold was a rise in the rupee price of the sovereign, throughout the Presi
dency. In Bombay City the quotation for a sovereign by the end of August was Rs. 15-10-0.
From that period it rapidly dropped, falling to Rs. 15-0-6 at which level it remained during
the closing months of the year under report. At Poona the price rose to Rs. 16 for a short
time while at Jalgaon it rose to Rs. 15-12-0. Remarkably little inconvenience was caused by
the sudden stoppage of the issue of gold. The total absorption of gold coin was /T£
millions in 1912-13, over £4 millions in 1913-14 and over £2 millions in 1914-15. Seeing
that during the last 7 months and 27 days of the year under report, sovereigns were not
issued, save to military officers leaving the country, it is not surprising that the absorption
during the year under report is not much more than half what it was in 1913-14. That the
figure was larger than that of 1912-13, notwithstanding the restriction, is due to the fact that
in the first four days of August over -£1,000,000 was issued to the public from the currency
offices at Bombay and Karachi, very little of which has come back. The absorption in
194 was exceptionally large and the available figures tend to show that, even had war
not broken out, the high figure of that year would not have been maintained during the year
under report, although undoubtedly the sovereign has been increasing in popularity of late
years. The Customs Department returns the import of sovereigns at £1,492,000, while the
currency office figure is only £811,000. A large proportion of the imported coins passed
direct into circulation. I his may be ascribed to the comparatively high price of gold ruling
during the year in consequence of which a large proportion of the imported coins appear to
have been sold in the bazar at a profit instead of being tendered at the currency office in
exchange for notes or silver at the fixed rate of Rs. 15 in the pound.
3. The net absorption of rupees Indian silver coin also widely used in the Persian Gulf. and half- rupees Indian silver coin also widely used in the Persian Gulf. rose by Rs. 54-12 lakhs One lakh is equal to one hundred thousand rupees to Rs. 458-98 Silver coin,
lakhs One lakh is equal to one hundred thousand rupees , notwithstanding the comparatively small amount of silver taken in order to finance the
cotton crop. The considerable absorption that took place during the year was largely due
to the heavy issues of coin from district treasuries that occurred in August and September
in order to meet withdrawals from the Post Office Savings Bank and the demand for silver
in exchange for notes. The transactions at the two currency oflices at Bombay and Karachi
resulted in a net issue of only 70-94 lakhs One lakh is equal to one hundred thousand rupees as against 393-79 lakhs One lakh is equal to one hundred thousand rupees in 1913-14 and 117-14
lakhs One lakh is equal to one hundred thousand rupees in 1912-13.
4. 1 he net absorption of quarter and eighth- rupees Indian silver coin also widely used in the Persian Gulf. amounted to Rs, 6-12 lakhs One lakh is equal to one hundred thousand rupees as Small coin,
against Rs. 9-38 and Rs. 4-89 lakhs One lakh is equal to one hundred thousand rupees in the two previous years. The net absorption of nickel
coin fell from Rs. 3‘59 t 0 Rs. 2-14 lakhs One lakh is equal to one hundred thousand rupees . The nickel one-anna piece has been very popular
in the Bombay Presidency The name given to each of the three divisions of the territory of the East India Company, and later the British Raj, on the Indian subcontinent. since its introduction, and the total’absorption from 1907-08 to
I 9 I 4 _I 5 Tias amounted to Rs. 29-79 lakhs One lakh is equal to one hundred thousand rupees . Its popularity continues to have a marked effect
on the circulation of single pice, of which Rs. 5-91 lakhs One lakh is equal to one hundred thousand rupees have been withdrawn from circula
tion during the last seven years. 1 he demand for copper coin in this Presidency The name given to each of the three divisions of the territory of the East India Company, and later the British Raj, on the Indian subcontinent. is very
limited, except for new coins which are frequently asked for by the public for distribution
among the poor at marriages and festivals. In such cases, used coin is not accepted even
if new coin be not available.
5 - Light-weight and other uncurrent silver coin of the value of Rs. 12 95 l&khs were Coins withdrawn,
withdrawn from circulation. The preceding year’s figure was Rs. 13-84 lakhs One lakh is equal to one hundred thousand rupees . The
continued decrease in the withdrawals of 1835 and 1840 coins and of George V rupees Indian silver coin also widely used in the Persian Gulf. of
19 11 indicates a steady decrease in the circulation of these coins. A balance of 9I lakhs One lakh is equal to one hundred thousand rupees of
George V rupees Indian silver coin also widely used in the Persian Gulf. of 1911 is still in circulation.
6. There was only one prosecution for fraud in connection with a note during the year Frauds and forgeries,
under report, and six forged notes (5 for Rs. 10 and 1 for Rs. 100) came to the notice of the