History And Problems Of Indian Currency - 1835-1949

HISTORY AND PROBLEMS OF INDIAN CURRENCY 38353949 AN INTRODUCTORY STUDY By D. K. MALHOTRA M. A., Ph. D. New . Reiised Edition. 1949 First Edition 1939 Second Edition 2944 Third Edition 1945 Fourth Edition 1947 Fifth Edition 1949 Copyright Reserved Price Rs. 10 8-Ptiftted at Forward Block, Simla attd published Minerva Book Shop, Simla, PREFACE TO THE 1944 EDITION The book was first written during 1938-39 with the limit ed objective of providing a clear and concise account of the main developments in our currency system during the last one hundred years and its first edition came out a few months after the outbreak of the war. The war has given rise to some very knportant developments in the sphere of Indian currency and these have been covered in the present edition. The shape of the material incorporated in the first edition has also been changed a little by addition, modification and am plification. It is very difficult to write about any aspect of Indian war economy without quickly getting out of date. For the scene changes even as one is looking at it and the latest information has to be pursued like will-o-the-wisp. The following words occurring in the last chapter of the previous edition embody the conclusions than reached about the future of Indian currency It may take a long time yet for the international monetary position to become clear and stable, with war in the offing it may get more confused and unstable-An independent mone tary policy alone can safeguard Indian interests in such an emergency. The past record of currency management in this country is not such as to inspire public confidence. The ex cessive dependence of her monetary system on currency and credit changes inEngland has been serious disadvantage for India. This dependence must be ended and a monetary sys tem suited to Indian needs and managed to promote Indian in terests evolved. The war has brought a wealth of experience and wisdom but has in no way necessitated the retraction or revision of that conclusion. IV HISTORY AND PROBLEMS OB 1 INDIAN OtTEBBHOT This book is modest in its claims and invites no rigorous Judgments. But an attempt has been made to import into its pages something of a method of approach and spirit to which the author attaches great value. If ever there was a time when the Indian economist could live in his ivory tower and put on the trappings of scientific purism that time is now Ipng past. Into the context of every economic problem of this our country, the mighty and yet unsolved political pro blem enters and over the whole of its economy it rolls out in its wide sweep like a sheet of lead. The Indian economist has to show a keener appreciation of this fact. But at the same time, he cannot afford to let it grow into an obsession which would run away with his analysis and judgment. No thing will, of course, absolve him from the duty of being an unbiassed student of events but he will greatly fail if he does not endeavour, within the limits of his capacity and work, to function as the adviser and prompter of a long suppressed na tion, heavy with the burden of many infructuous decades, but now gathering some quite resolve to be on the move, 10th March, 1944. PREFACE TO THE 1945 EDITION The second edition of the book which came out in April 1944 was exhausted within a few months. This unexpectedly generous response from the readers should have been under differentconditions a source of the utmost gratification to the author but in the event it proved to be a source of some embarrassment. For apart from his own preoccupations in fields which were not strictly academic, the termination of the hostilities first in Europe and later on in Japan and the vaga ries of the control over paper and printing occasioned several delays and rendered the task of bringing out the present edi tion not only dilatory but also somewhat arduous...