Reinterpreting Imperial (Non-)Intervention in India’s Currency System during 1866–98: Some Reflections on a Colonial Episode

The currency question engaged a cross-section of interests in colonial India – importers, exporters, industrialists and farmers, as also the governments in British India and in Great Britain – making it a topic of rigorous debate in the society of that time. Because of conflicting interests among them, none of the policy alternatives that were contemporaneously available could satisfy all, and, hence, frequent experiments followed. The milestones in India’s currency history during 1835–99 are: (a) introduction of silver monometallism in 1835; (b) adoption of gold mohur as a subsidiary currency in 1841 (and also its withdrawal in 1851); (c) institution of paper currency in 1861; (d) acceptance of British sovereigns at Indian treasuries (and also payments thereof) in 1864; (e) suspension of unlimited silver coinage in 1893; and (f) introduction of gold (sterling) exchange standard in 1899.