Note 43 — Chapter IV

The Accountant–General, Bombay, has suggested (see Paper Currency Report, 1911–1912) that “the principal cause” of the heavy importation of sovereigns has been a reduction in the rate of charge (from 1/16 per cent to 1/32 per cent) for Telegraphic Transfers issued upon Madras and Calcutta against gold imported into Bombay. No doubt, this favours gold to a slightly greater extent than before, as against Council Transfers, as a means of remittance from London to Madras and Calcutta, but the difference seems too small in relation to the other factors which determine the cheapest form of remittance, for the change to have exerted any appreciable influence.