Preface

Summary

In August last the following letter to his address was handed me by Mr N. McNeill, H.B.M. Consul at Batavia:

SIMLA, THE 2^ND JULY 1886.

Dear Sir.

In 1873 the Government of Holland, in view of the demonetisation of silver by other European countries, suspended the free coinage of silver, and in 1875 Holland adopted a gold standard on the basis of 1 to 15.62, by permitting the free coinage of gold at that ratio and continuing the prohibition of the free coinage of silver. The adoption of similar measures has been more than once pressed on the Government of India and on the Secretary of State for India; but the decision has always been to make no change, and this decision was based partly on a consideration of the peculiar economic conditions of India, and partly on the belief that the fall in the relative value of silver was probably due to the appreciation of gold rather than to the depreciation of silver.

The Government of India has no intention of proposing any change in the monetary standard of India, but is for many reasons anxious to obtain information regarding the economic condition and progress of Java under the gold standard. The information on the subject which is available in India is extremely limited, and Lord DUFFERIN has requested me to apply to you in the hope that you may be able to assist the Government of India in this matter.

What we are specially anxious to know is the course of wages, prices, profits, imports, and exports, as well as of the public revenue and expenditure since 1870.

It is more than probable that full information on these points will not be forthcoming; but I will indicate the nature of the information required, and trust that you may at any rate be able to supply it in part.