London, Feb. 1.
The report of the Indian Exchange and Currency Committee of which Sir Henry Babington Smith was Chairman states that the rise in the rupee exchange has been of no advantage to India generalls and that Indian trade is not like permanently to be injured from the fixing of the exchange at a high level.
The Committee recommend inter alia that the present rupee should not be changed in weight and fineness: that the rupee should be placed on a gold basis: that parity should be 10. rupees to the sovereign; that the import and port of gold\to and from In should be freed from government control when the statutory ratio has been effected: the earliest convenient removal of the ban on the import of silver but a temporary re tention of the prohibition of its exports.
The Committee consider that if the price of silver exceeds th> aforementioned gold parity beyond a brief period the situation should be met by all available means pr: vided the convertibility of the note issue. the maintenance of which is regarded as essential, is not impaired. The Government, the Committee consider, should even be prepared to buy silver for rupee coinage at a loss.
The Secretary of State for India has decided to adopt the aforemenioned gold parity recommendation, but after reviewing the abnormal existing conditions he decided to retain temporarily the issue of licences in respect of importation of gold and during the transitional period the sovereign will remain legal tender at the present ratio of 15 rupees.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.