Note 4 — Chapter I

The Hon. Mr. Dadabhoy, speaking in the Legislative Council in 1910, argued that “the harmful effects of a further fall in silver (i.e. in its bullion value) can be neutralised by Government by creating a further contraction in the volume of the currency, and thus producing a greater scarcity of the rupee, by maintaining the Gold Standard Reserve at a higher figure, and, further, by more frequent withdrawal of Council Bills from the market.” A contraction of the currency would not, of course, have the effect supposed, but the Government could not, in fact, bring about a contraction in the manner described.