VALUE OF A LIMITED COIN 3 
bility of the ratio between silver and gold varying 
again so as to make the metallic contents of the rupee 
equal to more than one-fifteenth of £1 was recognized, 
but was not regarded as an objection, inasmuch as 
one of the objects of the change was to keep the 
rupee higher than it otherwise would be. If it went 
higher than 15 to the f1 the new system would 
simply disappear because no longer necessary. There 
would be no melting down of the silver coinage, as 
there would in similar circumstances in England, 
because there would be no gold currency in the way 
to prevent the coined rinee rising in value along 
with silver. 
Some of the older economists and financiers of the 
time said the scheme could not possibly work, and 
were greatly pleased when their prophecies seemed to 
be justified wv the failure of the rupee to stand 
immediately at the intended rate. But this was only 
the natural consequence of insufficiency of demand : 
the demand was not at first big enough to make the 
mere stoppage of new coinage bring the value up to 
the ratio. Soon, however, demand increased, and 
gradually increased enough to overcome the counter- 
acting effect of some new supply in the shape of 
rupees which were outside India and now came back 
because they were worth more there than outside : 
the rupee rose in relation to gold so that merchants 
in India and England were cble to do business approxi- 
mately at the ratio of rupees to the £1, and the 
Indian Government ccu.. ~~ 7 anproximately £1 due 
from it with == —:.2s. 2:0 “tle difficulty was 
found in maintzising that ralio. 
The rupea crm va" came to be one-fifteenth 
of a pound ‘u- © 7. .cason as the English 
shilling is _... , ~. pouna -there was a 
sufficient demon. . ©... ::l too much supply. 
The difference wc “»<* "; Tp *ia there was no gold