Chapter I: Preface

When all but the last of the following chapters were already in type, I was offered a seat on the Royal Commission (1913) on Indian Finance and Currency. If my book had been less far advanced, I should, of course, have delayed publication until the Commission had reported, and my opinions had been more fully formed by the discussions of the Commission and by the evidence placed before it. In the circumstances, however, I have decided to publish immediately what I had already written, without the addition of certain other chapters which had been projected. The book, as it now stands, is wholly prior in date to the labours of the Commission.

J. M. KEYNES.

KING’S COLLEGE, CAMBRIDGE,
_12th May 1913_.

CONTENTS

CHAPTER I

PAGE

THE PRESENT POSITION OF THE RUPEE 1

CHAPTER II

THE GOLD–EXCHANGE STANDARD 15

CHAPTER III

PAPER CURRENCY 37

CHAPTER IV

THE PRESENT POSITION OF GOLD IN INDIA AND PROPOSALS FOR A GOLD
CURRENCY 63

CHAPTER V

COUNCIL BILLS AND REMITTANCE 102

CHAPTER VI

THE SECRETARY OF STATE’S RESERVES AND THE CASH BALANCES 124

CHAPTER VII

INDIAN BANKING 195

CHAPTER VIII

THE INDIAN RATE OF DISCOUNT 240

INDEX 261

CHART SHOWING THE RATE OF DISCOUNT AT THE PRESIDENCY
BANK OF BENGAL _Face page_ 240