Indian Currency Committee
Encyclopedia
The Indian Currency Committee or Fowler Committee was a government committee appointed by the British-run Government of India
on 29 April 1898 to examine the currency situation in India. Until 1892, silver was the metal on which Indian currency and coinage had largely been based. In 1892, the Government of India announced its intent to "close Indian mints to silver" and, in 1893, it brought this policy into force. The committee recommended that the official Indian rupee be based on the gold standard
and the official exchange rate of the rupee be established at 15 rupees per British sovereign, or 1 shilling
and 4 pence per rupee. The British Imperial Government
accepted the recommendations of the commission in July 1899.
The action of the government in abandoning silver coinage was driven by the relative decline of the value of silver against gold, which had led to an accompanying decline of the rupee against gold and gold-based currencies (such as the British sovereign). India had been importing about a quarter of the annual global production of silver, in part to meet its currency issuing requirements. Some commentators noted that silver was gradually being globally discarded as a basis of currency, with only three main remaining supporters: Mexico (a major producer of silver), the United States, and India. With India's move to the gold standard, the silver standard
lost a significant supporter.
, and was often referred to as the Fowler Committee. Its final recommendation was also referred to as the Fowler Report.
British Raj
British Raj was the British rule in the Indian subcontinent between 1858 and 1947; The term can also refer to the period of dominion...
on 29 April 1898 to examine the currency situation in India. Until 1892, silver was the metal on which Indian currency and coinage had largely been based. In 1892, the Government of India announced its intent to "close Indian mints to silver" and, in 1893, it brought this policy into force. The committee recommended that the official Indian rupee be based on the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
and the official exchange rate of the rupee be established at 15 rupees per British sovereign, or 1 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
and 4 pence per rupee. The British Imperial Government
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
accepted the recommendations of the commission in July 1899.
The action of the government in abandoning silver coinage was driven by the relative decline of the value of silver against gold, which had led to an accompanying decline of the rupee against gold and gold-based currencies (such as the British sovereign). India had been importing about a quarter of the annual global production of silver, in part to meet its currency issuing requirements. Some commentators noted that silver was gradually being globally discarded as a basis of currency, with only three main remaining supporters: Mexico (a major producer of silver), the United States, and India. With India's move to the gold standard, the silver standard
Silver standard
The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver specie standard was widespread from the fall of the Byzantine Empire until the 19th century...
lost a significant supporter.
Miscellaneous
The committee was chaired by Sir Henry Fowler (later Viscount Fowler)Henry Fowler, 1st Viscount Wolverhampton
Henry Hartley Fowler, 1st Viscount Wolverhampton PC , was a British solicitor and Liberal politician who sat in the House of Commons from 1880 until 1908 when he was raised to the peerage...
, and was often referred to as the Fowler Committee. Its final recommendation was also referred to as the Fowler Report.