The principal objects for which the Reserve is maintained are (1) to provide funds from which the Secretary of State for India can finance his requirements at times when he cannot conveniently arrange for remittance of funds from India by selling Council drafts on India or otherwise, and (2) to furnish resources against which, in normal times, sterling drafts may, if necessity arises, be sold by the Government of India to remitters in India, with a view to preventing a depreciation of the exchange. The earlier history of the Reserve is described in the Explanatory Memorandum for 1922-23. [Command Paper 1766 of 1922.] In 1921-22 and 1922-23 the assets of the Gold Standard Reserve in excess of £40,000,000, on the basis of current market prices, were appropriated in reduction of the outstanding fiduciary currency; but from 1923-24, the corresponding assets were appropriated to revenue, and a similar appropriation is proposed for 1925-26. Statistics, etc., regarding the Gold Standard Reserve. The total receipts from profit on coinage, interest and discount, and profit by exchange up to 31st March, 1925, were as follows:— £ 28,573,606 Profits on Coinage-from 1900-01 Of this sum, £1,123,655 has been used for capital expenditure on railways; the remainder, out of which £2,866,217 has been transferred to the Paper Currency Reserve in reduction of created Rupee securities and £2,546,200 has been transferred to Revenue, has been credited to the Reserve. The following table shows the disposal of the sums paid to the Reserve up to 31st March, 1925 :— The Securities, estimated at £39,996,814 (as shown above), were as follows: The net profit on the Gold Standard Reserve Investments up to 31st March, 1925, is shown below: Estimated value of securities on 31st March, 1925 ... ... ... ... £ 39,996,814 39,940,160 56,654 2,013,309 1,956,655 20,574 1,977,229 Miscellaneous charges Total of losses and charges Interest and Discount received up to 31st March, 1925 Profit by exchange ... ... ... Net profit on Investments ... ... VII. EXCHANGE AND REMITTANCE. The sales in London by the Secretary of State of Bills and Transfers on India, the purchases of sterling in India by the Government of India and the purchases by the Secretary of State of proceeds of loans raised in London by Indian public bodies during the last ten years, have been as follows: In addition, £3,372,617 Council Bills were sold to Exchange Banks under special conditions at the rate of 1s. 4.16d. † In addition, £3,701,782 Council Bills were sold to Exchange Banks under special conditions at the rate of 1s. 4.52d. The sales by the Government of India of immediate and deferred telegraphic transfers on London during the last ten years have been as follows: £4,893,000 Deferred Transfers at 1s. 3d. Nil. £5,315,000 Transfers at average rate of 1s. 5d. the rupee Nil. The figures of Exports from, and Imports into, India during 1922-23, 1923-24, and 1924-25, are given in Appendix II (c) on pages 37 to 42. India Office, August 12, 1925. WINTERTON. The gross receipts in 1924-25, are 2,72 lakhs more than the Budget. Most of the tariff heads show an increase over the Budget Estimate; the largest increases are under sugar, cotton piecegoods, excise duty on cotton manufactures and yarn. Decreases have occurred under the heads, tobacco, mineral oils, cutlery and hardware. The fact that the net revenue is 25 lakhs less than the Budget is mainly due to the refund of Customs Duty of 2,80 lakhs to Railway companies working State lines, the Privy Council having decided that stores imported by them came under the definition of Government Stores which were, previous to the passing of the Sea Customs Act, 1924, passed free of duty. In framing the Estimates for 1925-26, it has been taken into account that the receipts under certain of the tariff heads were abnormally high in 1924-25. Considerable decreases are expected under import duty on sugar and cotton-piece goods and in the yield from protective duties on iron and steel as protection becomes increasingly effective. |