In the history of Indian currency and central banking, the Fowler Committee occupies an important position. But, its relevance went beyond the currency question. One suggestion that emanated from its report was Sir Everard Hambro’s central bank proposal. Hambro suggested establishing a state bank along the lines of the Bank of England and the Bank of France. Hambro’s central bank proposal is contained in a brief note attached to the Fowler Report. It provided the rationale for the proposal. The suggestion went back and forth between Calcutta and London before it was dropped after objections from different quarters. Continue reading “Sir Everard Hambro’s central bank proposal”
Five years after it implementedthe Herschell Committee recommendations in 1893, the Government of India made fresh proposals.The British Government, in turn, appointed the Fowler Committee in 1898 to examine these proposals.
In 1893, as endorsed by the Herschell Committee, and approved by the British Government, the Indian Government discontinued silver coinage. The intention was to eventually introduce a gold standard, the most important step in ensuring an exchange rate of 1s. 4d. This was not achieved for nearly five years. Therefore, the Government of India submitted fresh proposals to the Secretary of State for India to hasten the process. Some of these were drastic. These included the sale of bullion worth £ 6 million. There was also to be a sterling loan issued to make good the loss. Continue reading “History of Indian Currency: The Fowler Committee”
The Herschell Committee on Indian Currency, appointed in 1892, was the first of five Committees which examined India’s currency question. The other four were the Fowler, and Babington-Smith Committees, and the Chamberlain, and Hilton Young Commissions. Prior to this, the Mansfield Commission had in October 1866 submitted a brief report on implementation of the Paper Currency Act 1861. There have also been various minutes on the subject. These includes minutes of James Wilson, the first Finance Member, Sir William Mansfield (later Lord Sandhurst), George Dickson, Secretary to the Bank of Bengal, and others. We will cover there in different parts. In the first part of this series, we discuss the Herschell Committee, which submitted its report in 1893.Continue reading “History of Indian Currency: The Herschell Committee”