CHAPTER III

THE CURRENCY REGULATIONS OF THE EAST INDIA COMPANY

(1793-1833)

Introduction
1. Bengal Presidency:
A. Bengal, Bihar and Orissa: Expansion of Silver Currency:
a. Silver Currency
b. Gold Currency
c. Copper Currency
B. Cuttack
C. Ceded Provinces (Awadh):
a. Silver Currency
b. Gold Currency
c. Copper Currency
Establishment of Farrukhabad Mint
Mint Management
Improved Minting Techniques
D. Ceded and Conquered Provinces
E. Benares:
a. Silver Currency
b. Gold Currency
c. Copper Currency
Minting Charges
2. Madras Presidency:
A. Silver Currency
B. Gold Currency
C. Copper Currency
3. Bombay Presidency:
A. Silver Currency
B. Gold Currency
C. Copper Currency
4. Other Measures:
A. Customs, Transit and Town Duties and Monetary Policies
B. Laws on Counterfeiting: Assertion of Sovereignty or Sound
Monetary Policy?
5. Establishment of a Uniform Currency throughout British India:
A. Standardization and Revenue Collection
B. James Prinsep
Summing up
CHAPTER ill 95

CHAPTER III
THE CURRENCY REGULATIONS OF THE EAST INDIA COMPANY
(1793-1833)

The Charter Act of 1793 (33 Geo. ill, c. 52) made significant changes in East India
Company's administration of its Indian possessions. The year also saw the
commencement of the legislative process in the Bengal Presidency, when a series of
48 regulations were passed by the Governor-General-in-Council. Generally known as
the 'Cornwallis Code', these regulations ranged from revenue and commercial
administration to criminal and civil justice and, in a sense, 'completed the edifice of
reforms. ,I The year 1793 is also a landmark in the history of the currency legislations
of the East India Company. We shall discuss various legislations passed by the three
presidencies over a period of four decades (1793-1833), at the end of which a uniform
currency was established in the territories of the East India Company. Since most of
these legislations were enacted in the Bengal presidency, the discussion is also aimed
at establishing the leading role played by this presidency in institutionalising the
currency reforms process in India.

1. Bengal Presidency:

On 1 May 1793 a number of regulations were passed by the Governor-

General-in-Council, which laid the foundation of the currency reforms, initially in the
Bengal Presidency but eventually in the whole of British India.

By Regulation ill of 1793,2 aimed at 'extending and defining the jurisdiction

of the Courts of Dewanny Adawluts, or Court of Civil Judicature for the trial of Civil
Suits in the first instance, established in the several Zillahs, and in the cities of Patna,
Dacca, and Moorshedabad', the Mint and Assay Masters along with their assistants
and Native officers were granted immunity from trial in the Zillah or City Courts, for
any act done in their official capacity. This step was aimed at insulating the minting
activities by the Company's servants from unnecessary litigation. 3

I FWIHC XII 1978: 2.

2 Appendix A.l.
J Even in the present day, most of the legislations have a similar clause granting inununity to the public
servants for any action done by them in 'good faith. '
CHAPTERll 96

A. BENGAL, BIHAR AND ORISSA: EXPANSION OF SILVER CURRENCY

Regulation vrn of 1793 1 was aimed at giving a wide circulation to the

Company's Rupee - the Sicca. The revenues in Bengal were not only to be assessed in
terms of the Sicca Rupees but also to be realized in that specie only. However, as not
many Sicca Rupees were in circulation, a provision was made in the said Regulation
to accept other species of rupees, subject to the bazaar rate of balta or discount. Thus,
Section XLII of the Regulation vrn of 1793 read:

All engagements for the jumma [land revenues] whether executed by

proprietors or farmers are to be for sicca rupees, and a clause is to be
inserted, obliging them to pay Government siccas or the same specie of
rupees as they may receive from their under farmers or ryats, at the
bazaar rates of balta, until a sufficient number of sicca rupees can be
circulated to make these the only legal tender. The collectors are to
insert in their treasury accounts the rates of batta at which all rupees,
not siccas, may be received by him.
Having made some preliminary provisions in the Regulations III and vrn of
1793, the Govemor-General-in-Council enacted, also on 1 May 1793, Regulation
XXXV of 1793,2 'for the reform of the Gold and Silver Coin in Bengal, Behar, and
Orissa; and for prohibiting the currency of any Gold or Silver Coin in those Provinces,
but the Nineteenth Sun Sicca Rupee, and the Nineteenth Sun Gold Mohur, and their
respective divisions and sub-divisions into Halves and Quarters; and for preventing
the counterfeiting, defacing, or debasing ofthe Coin.'

This was the first of a series of comprehensive currency regulations passed by

the Govemor-General-in-Council. It contains twenty-eight Sections and runs into
sixteen pages. Section I of this Regulation presents a vivid account of the currency
situation in Bengal, Bihar and Orissa.

a. Silver Currency
The 19 Sun Sicca:
The principal districts In Bengal, Bihar and Orissa had a distinct silver
currency of its own which consisted either of the 19 sun Sicca Rupee, or old or
counterfeit rupees of different regnal years, coined either prior or subsequent to the
Company's administration. These coins served as the standard measure of value in all

1 Appendix A.2.
2 Appendix A.3.
CHAPTERll 97

transactions only in that district.

Thus, if a Sicca Rupee of the Nineteenth Sun, which is intrinsically
worth about seven per cent more than an Arcot, was offered in payment
in the Dacca Province, it was either reduced, or received nearly at the
same value as an Arcot; whilst the holder of Arcots, or other sorts of
Rupees, who carried them into Districts in which they were not current,
was subjected to similar loss. 1
However, when the Mints at Patna (Azimabad), Dacca (Jahangirnagar), and
Murshidabad were shut down in 1772, 1773 and 1777 respectively, people at large
and more particularly proprietors and farmers of land in the interior parts of these
provinces, faced a lot of difficulties. The public revenue was assessed and payable in
Sicca Rupees, which was obtainable only from the mint at Calcutta, and of which
sufficient quantity was not yet pushed into circulation. Thus, as an alternative, the
farmers were permitted to make their payment in older species of rupees at a fixed rate
of exchange. In order to pay their rent in a particular sort of rupees, these farmers of
land demanded it from the manufacturers in payment for their grain or raw materials,
and the manufacturers, in tum, demanded the same specie of rupees from the traders
who came to purchase their cloth, or other commodities. The merchants and traders,
who generally operated across various districts, each with a specific specie of current
or dominant rupee, on the other hand, were obliged either to procure the local coin
from the sarrafs at a premium or discontinue their purchases.

Thus various sorts of old rupees remained in circulation and soon became the
established currency of the particular district. As an inevitable consequence, the value
of each rupee was enhanced in the district in which it was current, as it remained in
demand for all transactions, while rupees current in other districts were not readily
accepted and therefore attracted huge batta or discount which the possessor was
obliged to pay upon exchanging them at the house of a sarrafs.

From the rejection of the coin current in one District, when tendered in
payment in another, the Merchants and Traders, and the Proprietors
and Cultivators of Land in the different parts of the country, are
subjected in their commercial dealings with each other to the same
losses by exchange, and all the other inconveniences that would
necessarily result, were the several Districts under separate and
independent Governments, each having a different coin. 2

I Regulation XXXV, 1793, Sec. I; Appendix A.3.

2 Ibid.
CHAPTERm 98

The profits which the sarrafs or money changers derived from this disordered
state of the coin were enormous. These sarrafs had their agents in the different parts
of the province, who purchased at a discount all rupees which are brought into the
districts in which they are not current, and sent them at premium to those districts
where they are the prevailing currency.

It was also noticed that due to the enhanced valuation of the rupees of older
mintage in a particular district, the proprietors and farmers of land, or other persons
concerned in making their payments to the Public Treasuries, derived a considerable
advantage as they were able to obtain profit while exchanging them for Siccas at a rate
considerably exceeding their intrinsic worth.

The Bengal Government, therefore, concluded that unless various old and
counterfeit Rupees that were current in the different parts of the Presidency, are
thrown out of circulation, and one specie of rupee made the standard measure of value
in all transactions between individuals, Government and its subjects, the loss that falls
upon the Government and the public at large, and would be perpetual.

The Regulation XXXV of 1793 sought to establish 19 sun Sicca as the

established silver coin of the Bengal Presidency. As early as in 1777 [1773 in the text
of the Regulation] it had taken a decision 'that all Rupees coined in future should bear
the impression of the Nineteenth Sun.' However, as a temporary measure, Rupees of
the 11 th , 12th and 15 th sun, were also directed to be considered current at par with the
19th sun Sicca Rupee until there was a sufficiency of the 19th sun Sicca Rupee. Again
in 1792, on the recommendation of the Mint Committee, the Company's Government
in Bengal decided that 'after April la, 1794, only the 19th sun Sicca rupees be
received in the public treasuries, or issued there from.' These as well as other
provisions of above-mentioned Regulations were re-enacted with amendments by the
Regulation XXXV of 1793.

With a view to rendering the 19 sun Sicca Rupee generally current and making
it the standard of value throughout the Bengal Presidency, the following measures
were considered necessary:

First. To direct the officers employed in the prOVIsIon of the

investment, the manufacture of Salt, and all commercial transactions of
the Company, to make their agreements with individuals for Sicca
CHAPTERm 99

Rupees of the Nineteenth Sun; for if Government in their extensive

commercial dealings, and in the provision of the Salt, make contrails
with their subjects in other species of Rupees, they must necessarily
continue the measure of value where those concerns are transacted, and
it would be as ineffectual to declare the Nineteenth Sun Sicca Rupees
the only legal currency, as it would be unjust to attempt to enforce the
rule.
Secondly. To oblige individuals to estimate their property by the
Nineteenth Sun Sicca Rupee, by declaring the amount of Bonds and
engagements entered into after a certain period (in fixing which a time
was allowed that was presumed sufficient for the introduction of the
necessary number of the Nineteenth Sun Sicca Rupees into circulation)
whereby any sum of money might be stipulated to be paid in any
species of Rupees excepting the Nineteenth Sun Siccas, not
recoverable in any Court of Judicature.
Thirdly. To prohibit the receipt of any Rupees excepting Siccas of the
Nineteenth Sun, at the public treasuries after the date above alluded to.
This last measure was calculated to oblige the Proprietors and Farmers
of Land to require Nineteen Sun Sicca Rupees from their under Renters
and Ryots, and consequently induce the latter to demand them from the
Manufacturers, who for similar reasons, would necessarily require
them from the Merchants, and Traders, and thus make it the interest of
all descriptions of persons to receive the Nineteenth Sun Sicca Rupee,
and to reject every other species of Rupee, upon the principles on
which they before demanded the particular Rupee current in the
respective districts.
Fourthly. To establish Mints at the cities of Patna, Dacca, and
Moorshedabad, to coin precisely the same Rupee as that struck at
Calcutta. Without the adoption of this last arrangement, it would have
been useless to declare the Nineteenth Sun Sicca Rupee the only legal
tender of payment. For unless individuals had been afforded a ready
means of procuring their old coin to be converted without loss into the
new, they would have been obliged to have purchased the new money
from the Shroffs, who would have demanded an exorbitant exchange
upon it, as well with a view to reap the immediate advantage, as to
prevent the establishment of the general currency of the Nineteenth Sun
Sicca Rupee. Keeping open Mints in the interior parts of the country
until the circulation may be filled up with that Coin, precludes the
necessity of any person applying to Shroffs for it, and consequently
deprives them of their influence (which is founded on the wants and
necessities of individuals) by furnishing all persons with the new
money at the cheapest rate, and with the least trouble. l
It was hoped that by the operation of these rules the various sorts of old and
light rupees would in a course of time fall to their intrinsic worth as compared with

I Ibid.
CHAPTER III 100

the Sicca of the 19 sun. As these old coins would nowhere pass or accepted as coin
they will necessarily be brought to the mint to be converted into Siccas of 19 sun.

Thus, Sec. II of the Regulation XXXV. 1793 prescribed a s ilver rupee - 19 sun
Sicca - of 179.666 grains Troy (l1.642g) weight. with 97.916 per cent (175.923
grains/ 11.40g) of pure silver and 2.083 per cent (3.749 grains/ 0.242g) of alloy. This
rupee, along with its half and quarter denominations of the same standard and
proportionate weight, was thus established as the standard silver currency for the
Bengal Presidency.

19 Sun Sicca
For the success of the new coinage it was important that the old and light coins
of older mintage as well as bullion are drawn into the Company' s mints and recoined
into the 19 sun siccas. To facilitate this re-minting process, this Regulation provided
that no minting charges will be levied from any individual, provided the metal was
equal to, or more than the above mentioned Sicca standard (Sec. IV ). However, if the
metal was below this standard, only refining charges at the rate of twel ve annas per
cent were to be paid for getting the bullion converted into 19 sun Sicca Rupees, hal f
rupees or the quarter rupees (Sec. V).

To facilitate a fair exchange of the different sorts of ruptes circulating in

Bengal, Section XIV of this Regulation laid down rules and valuation according to
which all rupees of older mintage were to be received in discharge of the public
revenue until the 10 April 1794. For this purpose the Mint Committee at Calcutta
obtained information from various district officials about different sots of rupees then
in circulation in the districts of Bengal. Based on this input, the Committee drew a
list, in which 27 different types of silver rupees were recorded which included as
many as 14 different types of Arcot rupees alone. The exchange rates for these
different sorts of rupees were then calculated after ascertaining their intrinsic value
through assay in the Calcutta mint. These exchange rates were then expressed in relation
to the 19 sun Rupee, as follows :
CHAPTERll 101

SORTS OF RUPEES
Sicca
19 Sun Siccas
Weight
Siccas ofMoorshedabad, Patna and Dacca, per 100 100 0 0
Phooley Sonats, do 100 0 0
Delhy Mahomet Shai, do 99 8 0
Mone~ Surat lar~e, do 99 8 0
Benares Sicca, do 99 8 0
BisSlDl Arcot, do 97 14 6
Sonats Sabic and Duckie, do 97 8 0
Forshee Arcots, do 97 6 6
French Arcots, do 97 0 0
Patanca Aroots do 96 9 6
Artmgzebee Arcots, do 96 9 6
Gursaul, do 96 9 6
Madras Arcots new, do 96 4 9
Masulipatam and Shardar Arcots, do 96 0 0
Patna Sonats old do 96 0 0
Benares Rupees old; do 95 14 6
Madras Arcots old, do 95 14 6
Farukabad Rupees, do 95 12 9
Jehaujee Arcots, do 95 1 3
ChalDlta Arcots do 95 11 3
Calcutta and Moorshedabad Arcots, do 95 6 6
Old Arcots, do 95 3 3
Dutch Arcots, do 95 0 0
Surat Arcots, do 94 0 0
Benares Trisolie, do 92 6 6
VizieryRt , do 63 0 0
Narrainy halfRunee new Do 63 0 0
Source: Regulation XXXV, 1793, Sec. XIV; see Appendix A.3.

It was clarified that 100 Sicca weight of each of the sorts of rupees specified in
the first column irrespective of the number of the rupees that may go to that weight, are to
be considered equal to the number of 19 sun Sicca rupees placed opposite to it in the
second column (Sec. XV). If any specie of rupees other than those specified in the said
Table was tendered in payment at any of the Public Treasuries, the Regulation provided
that 'one hundred Sicca weight of them, indiscriminately taken from the sum paid in the
presence of the payer or his agent, is to be sent to the nearest Mint to be assayed, and the
payer shall receive credit for a number of the Nineteenth Sun Sicca Rupees equal in weight
to the Silver of Sicca Standard that the Rupees so paid may be estimated to contain

according to the Assay, after deducting twelve annas per cent, for the expence of
refining, should the Rupees be under Sicca Standard.' (Sec. XVI).
After one year of the operation of the Regulation XXXV of 1793, it was
CHAPTERID 102

noticed that the number of the 19 sun Sicca in circulation was still not sufficient to
enforce it as the sole legal tender, a provision that was to come into effect from 10
April 1794. Hence, by Regulation VI of 1794,1 passed by the Govemor-General-in-
Council on 30 May 1793, the provisions of the Sections xvm, XIX, XX and xxm of
the Regulation XXXV of 1793 were postponed for another year - to 10 April 1795.

Another year passed but there was no significant change in the currency
situation. Thus, Regulation LIX of 1795,2 passed by the Govemor-General-in-Council
on 29 September 1795, records:

The reasons assigned in the preamble to Regulation VI, 1794, for

suspending certain rules in Regulation XXXV, 1793, until the 10th
April 1795, continuing to operate, and consequently rendering it
necessary that the enforcement of those rules should be further
postponed;
The provisions of the Sections XVIll, XIX, XX and xxm of the Regulation
XXXV of 1793 were postponed for yet another year - now to 10 April 1796.
However, this Regulation directed that all specie of rupees other than the 19-5un
Sicca, received in the public treasuries 'are not on any account to be disbursed from
the said treasuries, but are to be sent to the mint to be recoined into siccas of the
nineteenth sun .... '

The operation of the provision under Sec. XX of Regulation XXXV of 1793,

which specifically rendered void all bonds and agreements for any sum of money
'stipulated to be paid in any species of Rupees excepting Sicca Rupees, or Gold
Mohurs, of the Nineteenth Sun, or the halves and quarters each' was suspended till the
end of 10 April 1798 in the district of Sylhet (Regulation m, 17993) and till 16 August
1803 in the district of Chittagong (Regulation LN, 1803 4).

Prior to the passing of Regulation vm of 1793, all payments in silver were

made by weight. This practice was aimed at keeping up the circulating coin to its full
standard weight by obliging the holders of the light weight coin to carry it to the mint
for re-coinage. After 1793, the demand of Government on the proprietors of the

I Appendix AA.
2 Appendix A.5.
3 Appendix A.9.
4 Appendix A. 13 .
CHAPTERll 103

estates came to be fixed in perpetuity at a specific amount of money. It was noticed

that the 19 sun Sicca coined in the Company's mints at Calcutta and Murshidabad lost
some of its weight immediately after being issued from the mints. Though this
deficiency was negligible (2 to 4 anna weight per 100 Sicca Rupees), it invited the
charging of batta on these lightweight coins. By virtue of batta, these lightweight
coins remained in circulation, making the Gresham's Law operative.

To overcome this difficulty, which hampered the circulation of the 19 Sun

Sicca, certain orders were issued to the Board of Revenue and to the Collectors of the
districts on 2 October 1795, 'to obviate the loss and inconvenience that would have
resulted both to the public and individuals by rejecting the new coin in payment on
account of the smallest deficiency in weight, and consequently compelling the holders
to return it to the mint almost immediately after its being issued from thence... .' I
These orders were modified and enacted into Regulation LXI of 1795,2 which was
passed by the Govemor-General-in-Council on 13 November 1795. By this
Regulation, 'the salutary custom of receiving coin by weight' was preserved. It was
now declared that all 19 sun Sicca rupees, 'which shall not have lost by wear a greater
proportion of their full standard weight than six annas per cent, or six fifteenth of a
rupee in one hundred rupees; shall be considered as of standard weight, and be
received as such in all public and private transactions.' The catch in this Regulation
was 'loss in weight by wear'; any loss in weight 'by filing, clipping, or other artificial
means' was not covered by this Regulation and such lightweight coins were to be
received at their intrinsic value. It was also enacted that the lightweight rupees thus
received at the public treasuries, were not to be disbursed again, but were invariably to
be sent to the mint to be recoined. The Mint Master of the Calcutta Mint was ordered
to prepare stamped metal weights of fifty Sicca weight for the use of the Collectors of
the districts.

By Regulation LXII of 1795,3 passed by the Govemor-General-in-Council on

11 December 1795, the mint at Murshidabad was abolished. The 'inconsiderable
quantity of coin and bullion brought to it for coinage' was cited as the reason for the

I Regulation LXI of 1795, Sec. I, Appendix A.6.

2 Appendix A.6.
3 Appendix A. 7.
CHAPTERID 104

abolition. There was no change in the weight and fineness standard of the 19 sun
Sicca rupee for the next twenty-five years, of which the minting was now confined to
the Calcutta mint.

On the basis of the experience of over a quarter century, it was noticed that due
to high contents of pure metal, both 19 sun Sicca and 19 sun Gold Muhr, were easily
malleable and 'ill calculated to resist the wear and defacement to which coins are
necessarily exposed.' Besides, the high purity of metals also necessitated the
'expensive process of refining, diminishing consequently the productiveness of most
of the sorts of Bullion imported into the Company's territories.'l The Bengal
Government was also under pressure to achieve 'as much uniformity as can be
established between the currencies circulating at the different Presidencies.,2 Thus, by
Regulation XIV of 1818, which was passed on 24 December 1818, the Bengal
Government increased the weight of the 19 sun Sicca rupee, as follows:

Table: Weight and Fineness of 19 sun Sicca Rupee

Established by Weight Fineness
%
Grs Gms Grs Gms
Reg. XXXV, 1793 179.666 11.64 97.916
175.923 11.40
Reg. XIV, 1818 191.916 12.44 91.666
Half and quarter rupees of proportionate weight and fineness were also
authorised (Sec. I, Second). The coins of the revised standard were to circulate at par
with those of the old standard throughout the provinces of Bengal, Bihar and Orissa
(Sec.IT).
b. Gold Currency:

The prevailing crises of silver currency in Bengal had forced the Mint
Committee of Calcutta to recommend the integration of gold currency in the monetary
structure of the province. Therefore, a gold coin called the '19-sun Gold Muhur',
weighing 190.894 troy grains (12.37g) was established as the legal tender by
Regulation XXXV of 1793 (Sec. 11). 3

I Regulation XIV of 1818, Preamble, Appendix A.30.

2 Ibid.
3 Appendix A.3.
CHAPTER III 105

Provisions were also made for the coinage of half and quarter muhrs and the
choice of fixing as to what quantity of each denomination may be coined out of
bullion or light weight coins of earlier mintage supplied by the individuals, was left to
them (Sec. VI). A duty ranging from Rs.2.8 annas to Rs.3.12an., depending on the
fineness of the metal, was imposed on gold bullion sent to the government mints for
coinage (Sec. XXIV). This was done to offset the expense 'incurred in refining gold
[which was] not of Gold Muhur standard' [i.e. 99.25 per cent (189.462 grains/ 12.27g)
gold and 0.75 per cent (1.431 grains/ 0.92g) alloy] . This was also aimed at
discouraging ' the importation of Gold bullion in preference to Silver bullion ' (Sec.
XXIV). However, no charges were prescribed for re-coinage of gold muhrs, including
their halves and quarters, coined at the Calcutta mint since 20 Marc!:. 1769, I or for
those authorised to be coined at the mints of Calcutta, Murshidabad, Dacca and Patna.

The factors which necessitated the increase in the alloy content;; of the 19 sun
Sicca rupees and thereby an alteration in the overall weight of that coin in 1818, were
equally applicable for the 19 sun gold muhrs. Therefore, by Regulation XIV of 1818,
the standard of weight and fineness of the gold muhrs was altered, as follows:

Table: Weight and Fineness of 19 sun Gold Muhrs

0/0
Weight Fineness
Established by (in carat)
Grs Gms Grs Gms
Reg. XXXV, 1793 190.894 12.37 189.462 12.27 23.25
Reg. XIV , 1818 204.710 13.26 187.651 12 .15 22
However, unlike the silver rupee where the amount of pure metal had
remained unchanged, the Regulation XIV of 1818 in fact reduced the :::ontents of pure
gold in the new muhr by 1.811 grains (or 0.11g).This reduction in overall fineness of

I In 1769, mintage of gold muhr weighing 17 annas Sicca weight or 190.773 troy ;!;rains ( 12.36g) and

having a fineness of99.63 per cent, was authorized . With a view to easing the pressure due the scarc ity
of silver coin, this muhr was declared legal tender, and thus for the second time since 1766 a bimetallic
currency was established in the Bengal Presidency. However, as the exchange rate between silver and
gold coins that was officially fixed by the government was overvalued, this measure, like the previous
one in 1766, was foredoomed to failure.
CHAPTER III 106

the new gold muhr was done with a view to bringing it to the 22 carat standard. so as
to make it less malleable and resistant against wear. However, as a fallout of thi s
measure, a ground was provided for adding a premium on the gold muhrs of the old
mintage. Half and quarter muhrs of the proportionate weight and fineness were also
authorized by this Regulation (Sec. II).

c. Copper Currency:

The Regulation XXXV of 1793 was confined to the reform of silver and gold
currency and as such we find no mention of the copper coin in it.

The need for having a copper currency for minor transactions could not remain
neglected for long. In his letter dated 17 February 1795. Robert Blake, the Assay
Master of the Patna Mint, informed James Miller, the Mint Master at Calcutta, about
the scarcity of copper coin in Bihar. About the effects of this scarcity, Blake writes:

. .. this species of coin is the principal currency amongst the

manufacturing and labouring class of people in this quarter, hence CI
deficiency of this currency in circulation, whether real or artificial, the
evil will fall principally on the lower classes of people. )
The effect of this scarcity in money supply was directly evidenced In the
exchange rate of copper pice with the silver rupee, which soared from 64 tc 52 to a
rupee.2 To overcome this situation, the Bengal Government, in 1795, authorized the
minting of two denominations of copper coins, viz., ' One Pie Sikka', weighing 179.6
grains troy (= 11.64g) and 'Half Pie Sikka', weighing 89.8 grains troy (= 5.82g).

However, the minting of these coins was confined to the Calcutta mint. Both
these coin denominations were made legal tender for fractions of a half a ~~upee and
were to pass at the rate of one-fourth and one-eighth of an anna re '> pectively
throughout the provinces of Bengal, Bihar and Orissa. It was also decided that the

1 NAI , Finance Department, Mint Proceedings, Vol. 1795 , 29.

2 Ibid .
CHAPTER III 107

coins of the said two denominations would be struck for an equal value 'until it could
be ascertained which coin was in greatest demand. ' 1

After a few months of the coinage of these two denominations, in .May 1796
their weights were reduced to 134.7 grains troy (=8.73g.) and 67.3 grains troy
(=4.36g.) respectively.

In 1817, the Bengal Government passed a regulation 'for fixing the weight of
the Pice struck at the Calcutta Mint, and for giving circulation to Pice struck at any of
the Mints subordinate to this Presidency' (Regulation XXV of 18172 ). By this
regulation, the weight of the Calcutta pice was further reduced to 100 grains troy
(=6.47g.) (Sec. II), and its rate of exchange was fixed at 64=1 Sicca Rupee. To
augment the supply of copper coins in the ever-expanding boundaries of the Bengal
Presidency, the copper coins struck at the Benares and Farrukhabad mints under the
provisions of the Regulations X of 1809,3 VII of 18144 and XXI of 1816,5 were also
authorized to circulate at par with the Calcutta pice throughout these provinces. (Sec.
IV).

In 1831, the Bengal Government passed another regulation 'for legalising the
circulation of Copper Half Ana and Single pie pieces' (Regulation ill of 1831~. The
need for introducing other divisions of the copper coinage can be attributed to the
increasing monetization of the markets and a shift from cowries to metallic currencies
for minor transactions. According to Pridmore:
The gradual extension of the Company's rule in India and a stable
currency policy increased the demand for coin, including the need for
smaller copper denominations .... For smaller fractions, the cowries
shell had served the need. By 1830 the situation had changed. The
cowrie shell had no intrinsic value, nor was its import under any
regulation. Consequently, for several years a steady influx had taken
place and the shells no longer possessed the stability of value of former
years. 7

I Pridmore 1975: 209.

2 Appendix A.28.
3 Appendix A.19.
4 Appendix A.24.
s Appendix A.25.
6 Appendix A.38.
7 Pridmore 1975: 213.
CHAPTER III 108

Thus by Regulation III of 1831 two new denominations were added. These
were: Half Anna pice weighing 200 grains troy (=12.95g.) (Sec. III), and a Pie, or one-
twelfth of an anna, weighing 33.33 grains troy (=2.16g.) (Sec. IV).

The rates of exchange of various copper coins were now fixed as follows:

3 Pie = 1 Pice
2 Pice = 1 Half Anna
2 Half Anna = 1 Anna

Both Pie and Half Anna denominations were likewise legal tender at above
rates throughout all the provinces under the Bengal Presidency. (Sec. V) . One
interesting feature of these coins is that while all other coins struck by the East India
Company during this period (1793-1835) were issued in the name of the Mughal
Emperor, on these coins his name is conspicuously absent.

B. CUTIACK

When Cuttack came under the control of the East India Company in 1805, the
rules relating to the coinage of Bengal , Bihar and Orissa were extended to that district,
and as a result the 19 sun Sicca rupees and 19 sun gold mohurs were introduced in the
district of Cuttack (including the pergunnahs of Puttispore, Kummardichour and
Bograe, which were earlier part of the Midnapore district of Bengal) by Regulation
XII of 1805' which was passed on 5 September 1805. It was stipulated by Sec. XIII of
the Regulation XII of 1805 that ' all engagements for the payment of the public
revenue by the zemindars, talookdars, farmers and other holders of land, shall be made
in Calcutta Sicca Rupees of the nineteenth sun. ' However, in order to facilitate a
smooth transition, various sorts of rupees were allowed to be received in payment of
public revenue until the end of 1808. The rates of exchange for rupees of various sorts
were to be calculated in accordance with the table of rates contained in the Sec. XIV

I Appendix A. IS .
CHAPTER ill 109

of Regulation XXXV of 1793, which list 27 different types of silver rupees. As this
table was not exhaustive, the Collector of Cuttack was asked to collect specimens of
'any other specie of rupees' that might be current in that district. These specimens
were then to be forwarded to Calcutta for assay and a supplementary table of rates was
to be drawn up for use in the transition period.

In Cuttack, as in other parts of Orissa, cowries were a popular medium of

exchange and were an accepted medium for the payment of public revenue. For the
transition period their acceptance in the public treasuries was also allowed at the rate
of four kahans per sicca rupee.

Apart from the payment of public revenue in 19 sun Sicca, the Regulation XII
of 1805, also provided that all bonds, writings or other agreements made 'prior to the
expiration ofWillaity year 1213 (= AD 1806), whereby a sum of money is stipulated to
be paid in any specie of rupees, excepting the nineteenth sun sicca, or the gold mohur
of the nineteenth sun' may be liquidated (Sec. XIV), and all new agreements may be
made in Calcutta (19 sun) Sicca rupees or the 19 sun gold mohur. (Sec. XVI) After the
stipulated date (i.e. 1806) persons were to forfeit the right to realize any payment
under a bond or agreement, 'by which any sum of money shall be stipulated to be paid
in any species of rupees, excepting Calcutta Sicca rupees, or gold mohurs of the
nineteenth sun, or the halves or quarters of each (Sec. XV). This provision was,
however, rescinded in 1807 (Sec. ill, Regulation Xill of 180i). The Regulation also
prohibited all proprietors and the farmers of land 'from concluding engagements with
their under-farmers, ryots, or dependent talookdars, after the expiration of the
Williaity year 1213 (= AD 1806) in any specie of rupees or gold mohurs, excepting the
Calcutta Sicca rupees and the gold mohurs of the nineteenth sun' (Sec. XVI). The
defaulters were to face the penalty 'of not being permitted to recover any arrears, that
may become due to them under such engagement,' (Sec. XVI).

Hereafter all regulations that were framed for the provinces of Bengal, Bihar
and Orissa, were also made applicable to Cuttack (see for e.g. Secs. IV, VI, vn & XV
of Regulation xm of 1807).

The Williaity year 1215 (= AD 1808) was fixed as the cut off year for the

I Appendix A.18.
CHAPTERll 110

settlement of revenue in Cuttack. After the expiry of 1808 the said revenue settlement
was to be made in Calcutta 19 sun Sicca rupees and thereafter 'no rupee excepting
Calcutta Siccas' only were to be received into the public treasuries (Sec. IX, of
Regulation N of 1807 1).

During the intervening period such portions of rupees of sorts received into the
government treasury at Cuttack as could be withdrawn 'without impeding the general
circulation of the district', were to be sent to Calcutta mint to be recoined into siccas
(Sec. IX, of Regulation N of 1807). The pergunnahs of Puttispore, Kummardichour
and Bograe, however, were ordered to remit their entire revenue receipt in rupees of
sorts to Calcutta mint for similar recoinage into siccas (Sec. X, Regulation IV of
1807).
C. CEDED PROVINCES (AWADH)

In 1801, a large tract of land in the Doab region was ceded to the East India
Company by the Nawab Wazir of Awadh, who obtained in return a yearly subsidy for
his maintenance. By the Treaty of Lucknow signed on 10 November 1801 the districts
of Gorakhpur (including Azamgarh and Basti), Allahabad (including Fatehpur),
Kanpur, Etawah, Etah, Mainpuri, Bareilly, and Muradabad were taken over by the
East India Company.

To manage the affairs of the new territories, a 'Board of Commissioners for

the Management of Ceded Province' was constituted on 14 November 1801 and
Henry Wellesley, younger brother of the Governor-General Lord Wellesley, was
appointed as 'Lt. Governor of Ceded Provinces (of Oudh).' Bareilly was selected as
the seat of the new administration. The territories ceded by the Nawab of Awadh in
1801 were further augmented by another cession by Nawab of Farrukhabad, who in
1802 surrendered his territories to the East India Company and obtained in return an
annual subsidy.

Henry Wellesley's Commission was dissolved on 21 February 1803, 'with all

its offices, authorities and power.' In its place a new division called 'Provinces Ceded
by the Nawab Vazir' was created which comprised seven districts designated as

1 Appendix A.I7.
 CHAPTER III 111

follows:
1. Muradabad 5. Kanpur
2. Bareilly 6. Allahabad
3. Etawah 7. Gorakhpur.
4. Farrukhabad

John Fombelle was appointed as the 'Secretary to the Government for the Affairs
of the Ceded Provinces.'

Having settled the administration, the Government now turned its attention to the
state of currency in this new territory. On 24 March 1803, Regulation XLV of 1803 1 was
passed by the Governor-General-in-Council 'for the Reform of the Gold, Silver, and
Copper Coin of the Provinces ceded by the Nawaub Vizier ... ' The reasons for
promulgating this Regulation are spelt out in its preamble. These included: circulation of
'rupees of various denominations, differing in weight and standard' throughout the Ceded
Provinces. Before the cession to the East India Company, that land revenue in these
territories, as well as other transactions, whether with the government or between the
individuals themselves, were carried on 'in the currency of the zillah.' However,
'continually fluctuating' relative current or nominal value of these currencies caused
much inconvenience and loss to the transacting parties. Thus, with a view to withdrawing
from circulation various sorts of rupees, and instituting a standard silver rupee throughout
the Ceded Provinces, the Regulation XLV of 1803 was issued.

a. Silver Currency:

Partial Standardization: The 45-Sun Sicca Rupee:

The Silver Rupee which the Regulation XLV of 1803 sought to institute as 'legal
silver coin' in the Ceded Provinces was modelled on the weight and standard of the
Lucknow Rupee coined by the Nawab of Awadh at the Lucknow mint. Though the East
India Company's proposed silver rupee was to be struck at the Farrukhabad mint, they
preferred to call it 'Lucknow Sicca Rupee of the forty-fifth sun' (Sec. II). However, the
specific weight and standard of the proposed Lucknow Sicca rupee was not immediately
laid down, but was deferred to a later date (Sec. 111). For its size the Lucknow Sicca rupee
was to adopt the size of the Company's 19 sun Sicca rupee struck at the Calcutta mint
(Sec. V). Apart from the rupees of full denomination, the minting of fractional silver

I Appendix A.12.
CHAPTERll 112

coins viz. the Half-Rupee and the Quarter-Rupee of proportionally less size, but with the
same inscription as rupee was also authorized (Sec. VI). All these denominations of the
silver coins were declared legal tender throughout the Ceded Provinces.

b. Gold Currency:

Under Regulation XLV of 1803, while silver rupee was installed as the legal
tender general currency, no attempt was made either to establish a gold coinage on the
lines of the silver rupee, or to fix any relative value or an official exchange rate between
coinages of these two metals. Instead, the gold coins or muhrs were allowed to circulate
as before, as per the 'established usage of the country' (Section XLII). However, the status
of 'legal tender of payment, in any public or private transaction' was not granted to these
mohurs under this Regulation.

c. Copper Currency:

On the other hand, Regulation XLV of 1803 did envisage a copper currency to
substitute silver rupees in small transactions, usually under a rupee. Thus, a copper pice of
284.50 grains (18.43g) and its half denomination was established by this Regulation
(Section XLIII). These copper coins were also to bear '45 sun' legend, similar to those of
their silver counterparts (Sec. XLIV). With a view to ensuring a proper and extensive
circulation of these copper coins throughout the Ceded Provinces, the Regulation
provided for their free minting and also for their receipt and issue at all public treasuries
(Sec. XLIX). However, no copper coins established under Regulation XLV of 1803 were
ever issued and these provisions remained only on paper. Later it was noticed that no
application from the private individuals for minting copper coin had been received at the
Farrukhabad mint. 1 In 1806, therefore, the Government decided to withdraw its offer of
free minting of the copper coins and restricted the copper coinage only on Government's
account. By Regulation ill of 18062 it was laid down that 'pice shall only be coined on
account of Government, and in such quantities and at such times, as the Govemor-
General-in-Council may direct.' (Sec. ill).

In 1816, the weight of the copper coin was reduced to 200 grains (l2.96g) for the

I Pridmore 1975: 223

2 Appendix A.16.
CHAPTERID 113

full denomination or 'double pie' and 100 grains (6.48g) for its halfor 'single pie.'! Later,
by Regulation XXV of 1817/ it was decided to mint copper coin of 100 grains (6.48g) at
the Calcutta mint was and to declare it a legal tender throughout the Bengal Presidency at
the rate of 64 pie to a rupee (Sec. IV). The copper coins of Benares and Farrukhabad
mintage were equalized with the Calcutta pie (Sec. V), and thus a uniform copper
currency was established throughout the Bengal Presidency.

When a copper currency was conceptualized for the Ceded Provinces in 1803, no
attempt was made by the Government to fix any official exchange rate between silver and
copper coins. Section XLIX of the Regulation XLV of 1803 clearly stated that the copper
pice 'shall be received and issued according to the rate at which pice may be current in the
bazaar.' However, by Regulation III of 1806 the exchange rate of copper coin was fixed
at 26 pice to one Lucknow Sicca rupee. Later when in 1816 two new denominations ofthe
copper coins were approved, their exchange rate was fixed at 32 double pice = 64 single
pice = 1 rupee (Sec. IV of Regulation XXI of 1816). The new exchange rates are
significant as they indicate the appreciation in price of copper in comparision with that of
silver. In 1806 one Lucknow Sicca rupee fetched 7,397 grains (479.31g) of copper at the
rate of 26 pice to one rupee; a decade later, in 1816, one rupee fetched only 6,400 grains
(414.71g) of copper at the rate of 32 double pice to one rupee. These copper coins were
made legal tender for payment under a rupee, and any refusal to receive these coins was
made punishable.

Establishment of Farrukhabad Mint:

The provisions for substituting the multiple species of silver rupees with one
standard 45 sun Lucknow Sicca, and introducing a subsidiary coinage in copper, entailed
a large minting infrastructure, capable of producing large quantities of coins of the
prescribed weight and standard. Any short supply in the coins was bound to result in the
very abuses that these measures were pitched against, namely hoarding, inflation, and
premium or discount in monetary transactions. Therefore, to ensure adequate supply of
the newly established 45 sun Lucknow Sicca rupee, a new mint was set up at Farrukhabad

I Sec III of Regulation XXI of 1816, Appendix A.25; and Pridmore 1975: Coin Nos. 335 and 335A.
2 Appendix A.28.
CHAPTERm 114

(in u.P.) under Regulation XLV of 1803. 1

Besides, this Regulation gave Governor-General the right 'to increase or reduce
the number of mints in the Ceded Provinces, or to remove the mint or mints to any other
place or places, within the dominion of the Company.' (Sec. IV). Under this provision the
mint at Bareilly was abolished (Sec. XL).

Mint Management and Technology:

For the supervision of the mint, a Mint Committee was also established at
Farrukhabad, which had the District Magistrate and the District Collector as its members.
This Mint Committee was to function under the ov,erall supervision of the Mint
Committee at Calcutta. The Farrukhabad Mint Committee was also required to conduct
surprise checks at the mint and collect random samples of the coins for onward
transmission to the Calcutta Mint, where these were to be examined and assayed. (Sec.
XIII). To ensure that the coins struck at the Farrukhabad Mint are consistently of identical
weight standard and appearance, the Regulation XLV of 1803 stipulated that 'the dies for
striking silver coin in the Ceded Provinces, shall be cut in the mint at Calcutta.' (Sec.
VIII). Broken or unserviceable dies were required to be returned to the Calcutta Mint, so
as to avoid their misuse. The silver coin that was made legal tender in the ceded provinces
by the Regulation XLV of 1803 was '45 sun Sicca.' The '45 sun' or the 45 th regnal year of
the Mughal Emperor Shah Alam n in whose name these coins were to be struck
commenced on 9 August 1802 and terminated on 28 July 1803, whereas the actual
striking of these coins in the Farrukhabad Mint commenced only in 1806.

With the institution of 45 sun Sicca, the mechanized minting was also introduced
in the Ceded Provinces. Up till now all the coins struck in various mints in this territory
were hand-minted. Due to its being struck by a machine [press= kal] the Farrukhabad
rupee soon acquired the sobriquet 'kaldar rupiya.' The establishment of a mechanised
mint at Farrukhabad was aimed at meeting the supply needs for replacing the existing
multiple currencies.

IFarrukhabad mint was frrst established during the 6th regnal year of Farrukhsiyar (1716-17), by the first
Bangash Nawab of Farrukhabad, Muhammad Khan Bangash (d. 1743). On the coins issued subsequent to
1167 AH (AD 1753-54) the mint name appears as Ahmadnagar Farrukhabad. The Bangash Nawabs later
became tributaries of the Nawab of Awadh. This mint was located at Fatehgarh, the administrative
headquarters of Farrukhabad. Prinsep 1858: 26. The new Farrukhabad mint started production in 1806 and
continued its operations till 1824. It was finally abolished by Regulation II of 1824.
CHAPTERm 115

Another improvement that 45 sun Sicca had over the hand-minted coins, was the
appearance of coin-legend. ill the hand-minted coins, the dies of the coins were slightly
larger than the flan of the coins, and a result part of the die-impression remained 'off-the-
flan.' The Regulation XLV of 1803 prescribed that the dies of the 45 sun Sicca were to be
made 'of the same size as the coin, so that whole of the impression may appear upon the
surface of it' (Sec. VII).

Thus, we see that by Regulation XLV of 1803, the East illdia Company aimed at
substituting the multiple hand-minted coins of differing weights and fineness with its own
machine-struck standard rupee of uniform weight and fineness, throughout the newly
acquired territories designated as the 'Ceded Provinces.' However, any switchover of this
kind was impossible overnight and the Company was well aware of this fact. They had
tried a similar experiment while introducing' 19 sun Sicca' in Bengal, Bihar and Orissa,
through Regulation XXXV of 1793. The implementation of that Regulation had to be
postponed twice - once in 1794 (Regulation VI of 1794) and again in 1795 (Regulation
LIX of 1795) - due to insufficient circulation of that specie in the designated territories.
Therefore, we find that in Regulation XLV of 1803, sufficient time cushion was granted
to maintain the status-quo in payment of revenue, and by accepting 'various sorts of
rupees, current in those provinces' (Sec. XVIII). This arrangement was to continue till the
end of the harvest (Fasli) year 1215 (1808 AD), after which no other rupee, but the 45-
Sun Sicca was to be legal tender of payment in any public or private transactions' (Sec.
XXIII). To make the usage of 45 sun Sicca universal throughout the Ceded Provinces, the
Regulation XLV of 1803 made ample provisions for its use not only as currency but also
as money of account. Thus, all 'bonds, or writings, or other agreements, whether written
or verbal entered prior to the commencement of the year 1216 Fussily (1809 AD)"
whereby a sum of money was pledged in any other currency except the 45-Sun Sicca,
were to be liquidated (Sec. XXN). The same cut-off date was stipulated for all
proprietors and farmers of land who were prohibited 'from concluding engagements with
their under-farmers, ryots, or dependent talookdars, in any (other) specie of rupee' (Sec.
XXV!).)

The Regulation XLV of 1803, finally aimed at drawing all other circulating specie

IHowever, even before the expiration of this cut-off date, this order was rescinded in 1807 (Sec. IX of
Regulation XIII of 1807, see Appendix A.18)
CHAPTERll 116

to the mint for re-coinage into the 45 sun Sicca, and, therefore, prohibited the Government
Officers 'from issuing, from public treasuries, rupees of sorts which may be received at
the same ... excepting in instances in which the exigencies of the public service shall
render the issuing of such rupees in dispensably necessary' (Sec. XXII).

To facilitate the stipulated short-term co-existence of rupees of different mintage

along with the newly established 45 sun Sicca, the Regulation XLV of 1803
conceptualized a table prescribing the exchange rates between the 45 sun Sicca and
various other rupees, then circulating in the Ceded Provinces (Sec. XVII). The conversion
rate was to be fixed on the basis of the intrinsic value of such rupees, 'as ascertained by
assay in the Calcutta Mint.' This table was published under Regulation ill of 1806,
wherein 49 specie of silver rupees have been listed and their conversion rate into 45 sun
Sicca laid down.

Before we analyze other provisions of the Regulation ill of 1806, let us tum to
some political developments that ultimately had a bearing on the said Regulation.

D. CEDED AND CONQUERED PROVINCES

The opening years of the nineteenth century saw expanSIon of the territorial
possessions of the East India Company. After securing a large tract of land in the Doab
from the Nawab of Awadh in 1801, the Company on 17 December 1803, concluded the
Treaty of Deogaon with the Bhonsla ruler Raghuji II of Nagpur, by which the province of
Orissa, and the country west of the river Wardha and south of Narnalla and Gwaligarh,
was annexed to the Company's territories.

A few days later, on 30 December the Company concluded the Treaty of Surji
Anjangaon with Daulat Rao Sindhia. By this treaty, all territories lying between Yamuna
and Ganga; all those situated between the north of Jaipur, Jodhpur and Gohad; those
between Ajanta and Godavari, as well as the towns of Abmednagar and Bharoch came
into the Company's hand.!

To take care of the administrative responsibilities of the newly acquired territories,

the Department of Ceded Provinces, created in 1801, was reorganized and from 27

I By a separate treaty, namely Treaty of Mustafapur concluded on 21 November 1805 with Daulat Rao
Sindhia, the town of Gohad and the fort of Gwalior was restored to him, and in return he renounced his
claims in favour of the Company on the territories north of the river Chambal.
CHAPTER III 117

November 1804, it came to be known as ' Department of Ceded and Conquered

Provinces. '

With a view to establishing the currency of the yet-to-be-issued 45 sun Sicca in the
newly acquired territories, the Company, on 15 August 1805 issued Regu. ation Xl of
1805, 'for extending to the conquered provinces, situated within the Doab and on the right
bank of the river Jumna; and to the territories Ceded to the Honourable the East India
Company in Bundelcund by the Peishwah Regulation XLV , 1803, entitled .... "

This Regulation abolished the operation of any mint within these territories,
except for ' the coinage of whatever silver bullion and silver coin may be deposited in
such mint or mints for coinage' (Sec. III), thus centralizing the minting activities at the
Farrukhabad mint.

Now it was a high time that the much discussed 45 sun Sicca was minted and
pushed into circulation. While Regulation XLV of 1803 had laid down the rules for the
general appearance of the 45 sun Sicca, its weight and standard was not f ixed until 17
March 1806 when Regulation III of 1806 was issued, ' for defining the weight and
standard of the silver coin, established in the Ceded and Conquered Province:;; .. . .,:,

The weight of the silver rupee was fixed at 173 grains (Il.21g) out of which 95 .5
per cent was pure silver and 4.5 per cent alloy.

Similarly, the weight of the copper coin of 284.50 grains (18.43g) established by
Regulation XLV of 1803 was also expressed in Lucknow and Calcutta Sicca weights, so
as to fix their conversion rates vis-it-vis these silver coins (Sec. III). Accord ingl y. the rate
of26 copper pice were equalled to one Lucknow (45 sun) Sicca rupee (Sec. IV). The most
important component of the Regulation III of 1806 was the table of rates ' for determining
the receipt and payment of different descriptions of rupees, not being the rupees declared
[viz. 45 sun Sicca]':

I Appendix A.14.
2 Appendix A.16.
CHAPTERm 118

Table showing the intrinsic comparative value that each specie of rupee,
bears to the Lucnow Sicca rupee, or in other words, the number of Lucnow
Sicca rupees, intrinsically equal to one hundred Lucnow Sicca weight of
each of the different sorts of rupees specified in the table.
Lucnow
Sorts of Rupees Sicca Lucnow Sicca Rupee
Wei2ht
Sicca of Lucnow, Troy weight grains 173,
fine silver, grains 165 22, 100 100 0 0
Calcutta, Moorshedabad, Patna, and
Dacca, 19 sun Sicca rupees, ditto. 102 9 9
Furruckabad rupees, ditto. 97 10 3
Bareilly rupees, ditto. 97 6 0
Nudj_eebabad rupees, ditto. 96 5 3
Lucnow rupees coined at Allahabad ditto. 96 13 8
Old 18 suns Lucnow, ditto. 95 8 9
Viziery rupees, ditto. 89 4 2
Benares rupees, ditto. 101 0 8
Corah 12 suns, ditto. 91 9 11
-------------- 20 suns, ditto. 91 1 6
-------------- 12 suns , ditto. 92 14 10
Furruckabad 31 and 39 suns, ditto. 97 6 0
Etawah rupees, ditto. 95 4 6
Saharunpore old ruj>ees, ditto. 96 9 6
Saharunpore new rupees, ditto. 96 13 8
Panniput rupees, ditto. 95 12 1
Samlie rupees, ditto. 94 12 2
Kerhanah rupees, ditto. 96 5 3
Lundowrah rupees, ditto. 95 12 11
Thannah rupees, ditto. 94 12 2
Ruckaby rupees, ditto. 91 1 6
Sirdannah rupees ditto. 96 5 3
Dehli siccas, ditto. 101 0 8
Delhi 38 suns, ditto. 96 9 6
Bhurtpore rupees, ditto. 100 12 6
Khotah rupees, ditto. 95 8 8
Ghutsun 29 suns, ditto. 99 7 6
Mahomed Shahee 19 suns, ditto. 101 0 8
Gocul 46 suns, ditto. 96 13 8
Jeend rupees, ditto. 84 13 0
Siccas of Lucnow, ditto. 100 0 0
Gourshahee 7 suns, ditto. 95 4 6
------------ 8 suns, ditto. 95 12 11
--------- 9 suns, ditto. 93 3 0
------------ 10 suns, ditto. 93 3 0
------------ 11 suns, ditto. 92 6 5
------------- 12 suns, ditto. 91 5 8
Siringwy rupees, ditto. 93 7 2
Tamboshahree rupees, ditto. 91 9 11
Ballashahee rupees, coined at Culpie, ditto. 93 11 5
Hattrass rupees, ditto. 99 7 6
CHAPTER ill 119

Bindrabunsee rupees, ditto. 87 6 10

Generally struck by Perron ditto. 90 9 2
Deeg rupees, ditto. 91 9 11
Gourshahee 7 rupees, ditto. 98 11 0
Bombay rupees, ditto. 96 5 3
Old Arcots, Moorshedabad, Calcutta, ditto. 97 10 3
French Arcots, ditto. 99 7 6
Madras Arcots, ditto. 98 11 0
Source: Regulation ill of 1806, Sec. V, see Appendix A.16.

This table lists 49 varieties of silver rupees and their conversion rate in Lucknow
(45 sun) Sicca rupees. Out of 49 varieties, only five were found intrinsically superior to
the 45 sun Sicca. These were 19 sun Sicca struck at the Company's mints at Calcutta,
Murshidabad, Patna and Dacca; Benaras rupees, also struck by the Company; Delhi
Siccas; Bharatpur rupees, and Muhammad Shahi 19 sun (i.e. Rupees struck in the 19
th

regnal year ofthe Mughal ruler Muhammad Shah).

The rupees struck at Jind (in Haryana) and at Vrindavan (near Mathura in UP) had
the poorest conversion rates in comparison to the Lucknow (45 sun) Sicca rupees. For the
purpose of conversion, various sorts of rupees were first equated to 100 Lucknow Sicca
weights (173 grains or 11.21g) and than their equivalence to the number of Lucknow (45
sun) Sicca rupees was fixed according to the assay.

The enactment of Regulation ill of 1806 provided a sound basis for an efficient
monetary administration of the Ceded and Conquered Provinces. However, the
calculation and settlement of revenue of this vast tract of land in the terms of the newly
established legal currency was a tedious and time consuming process. The Regulation
XLV of 1803 had provided that after the expiry of the ongoing triennial settlement of the
land revenue of the Ceded Provinces in 1212 Fusli (1805 AD) 'all future settlements of
the land revenue in those provinces, shall be made in the Lucknow forty-fifth sun sicca
rupee.'

However, due to fast changing political situation and consequent territorial

expansion of the East India Company, the triennial settlement of the land revenue could
not be affected. As a result, by Regulation N of 180i which was passed on 19 March
1807, the operation of clause 1 of Sec. XVII of Regulation XLV of 1803 was suspended -
in the Ceded and Conquered Provinces till the end of 1215 Fusli (1808 AD) and in

1 Appendix A.I7.
CHAPTERm 120

Bundelkhand till the end of 1216 FusH (1808/09 AD) (Sec. II). During the intervening
period all sorts of rupees current in these provinces were to be received in payment of
government dues, as per the table prescribed by Regulation III of 1806.

Meanwhile, another measure introduced by Regulation XLV of 1803 was posing

hurdles in the spread of money use in the society. The Section XXII of Regulation XLV of
1803 had ruled that rupees of various sorts that might be received at the public treasuries,
shall not on any account be re-issued there from, but shall be sent to the mint at
Farrukhabad, to be recoined into the Lucknow 45 sun Siccas. The Regulation N of 1807
realized that this measure 'might not be practicable' because it substantially reduced the
quantum of money in circulation, and at the same time, the Farrukhabad Mint, which had
commenced its operations in 1806, was unable to cope with the recoinage of 'large
proportion of rupees of sorts' that were thus withdrawn from circulation. It was, therefore,
decided that only 'mintable quantities of different specie will be withdrawn from
circulation and sent for recoinage.' (Sec. N).

The minting of Farrukhabad rupee, was initially confined to the Farrukhabad mint.
Though, in 1813 its minting was also authorized at the Delhi (Shahjahanabad) mint, but
the production of kaldars could never be effected at Delhi and that mint was finally shut
down in 1818. 1 However, in 1817 the Bengal Government resolved to extend the right of
minting the Farrukhabad rupees to the mints of Calcutta and Benares, and to any future
mint to be established by the Company. Thus, by Regulation XXVI of 1817,2 dated 16
December 1817, Farrukhabad rupee minted at any of the Company's mints was declared
to be 'the established and legal silver coin in the Ceded and Conquered Provinces' (Sec.
11). As a follow up of this decision the Calcutta mint was declared open for the coinage of
Farrukhabad as well as Benares rupees on account of individuals, and an advertisement
for general notice in this regard was published in September 1818.3

By Regulation XI of 1819,4 the Farrukhabad rupee, irrespective of its mintage, was

declared 'a legal tender in all the territories under the Bengal Government', except the
Provinces of Bengal, Behar and Orissa (Sec. N). The weight of the Farrukhabad rupee

I Garg 1990: 233-40.

2 Appendix A.29.
3 NAI, Financial Department, OC, 4 September 1818, No. 25.
4 Appendix A.32.
CHAPTER III 121

was raised from 173 grains (11.21g) to 180.234 grains (11.67g) though there was no
change in the weight of the pure contents, which remained constant at 165.215 grains
(10.70g), thus retaining the proportion of gpart of pure metal and 1~ part of alloy (Sec.

III).

By Regulation II of 1824,1 dated 5 February 1824, the Government decided to

abolish the Farrukhabad mint (Sec. II), and thereafter the minting of the Farrukhabad
rupees was carried out in the mints at Calcutta and Benares. The total value of the silver
coinage struck at the Farrukhabad mint throughout its existence (1806-24) was
Rs.7,75,42,114. 2 With a view to augment the production of Farrukhabad rupee, a mint
was opened in Saugor in the same year (1824), where minting of Farrukhabad rupees
commenced in 1825. Next year, the area of circulation of the Farrukhabad rupee was
officially extended to the Saugor and Nerbudda territories which the East India Company
had acquired from Peshwa Baji Rao II after the Third Anglo-Maratha War (1817-18). 3
The total value of the silver coinage of the Saugor mint during the entire period of its
operation (1825-35) was Rs.53,27,503. 4

E. BENARES

The mint at Benares was first established in the 15 th regnal year of Muhammad
Shah (1732-33).5 Up to 1748 it remained under the charge of the Mughal emperor, but
was usually farmed. From 1748 to 1751 it remained under the charge of Raja Balwant
Singh of Benares. 6 Even after the cession of this district to the East India Company in
May 1775, the control of Benares mint remained in the hands of the Raja of Benares -
Chait Singh. However, after the expUlsion of the Raja in 1781, the Company took over the
direct control of the mint, but it continued the mintage of gold, silver and copper coins on
the existing pattern.

In 1812, a Mint and Assay Master was formally appointed for the Benares mint

I Appendix A.35.
2 Pridmore 1975: 257.
3 NAI, Financial Department, OC, 19 January 1826, Nos. 1-3 and 16 March 1826, No.2.
4 Pridmore 1975: 257.
5Report of G.H. Barlow, Sub-Secretary to the Government of Bengal, dated 24 August 1787. NAI, Mint
Committee, Vol. 1792: 79.
6 Mishra 1975: 177.
CHAPTER III 122

and the control of the mint was vested in the Board of Commissioners of t l1e Ceded and
Conquered Provinces. I By Regulation VII of 1826 2 this control was transferred to a Local
Committee.

a. Silver Currency:

At the time of the cession of Benares to the East India Company the rupee coined
at the Benares mint weighed 630 chowals (or grains = 11.29g appro x) and had a alloy of
18 chowals (or 0.32g).3 These bore a mint mark - that of a fish - on the obverse. and were
thus popularly known as the Machhlidar Rupees.

In 1812 the East India Company took steps to regulate the mintage of silver rupees
at the Benares mint. By Regulation II of 1812, the weight of the Benares rupee was fixed
at 175 grains (11.34g). It was to contain 96.5 per cent pure silver and 3.5 per cent alloy
(Sec. XI). Though it was somewhat inferior in weight and standard when compared to 19
sun Sicca (179.66 grains = 11.64g), struck at the Calcutta mint, it was to adopt the size
and form of 19 sun Sicca (Sec. XIII). To facilitate this provision, it was decided that the
dies for striking these coins will be prepared at Calcutta Mint, and all broken or
unserviceable dies will be returned thereto (Sec. XIV).

The Benares rupees, including its halves and quarters, were declared legal tender
throughout the province of Benares (Sec. XX) . The deficiency in weight up to ' six annas
per cent, or six-sixteenth of a rupee in one hundred rupee' by way of usual wear was
permitted (Sec. XXI), beyond which these coins were to be sent to the mint for recoinage.

In 1818, the Bengal Government decided that along with the Farrukhabad rupee,
the minting of the Benares rupee must be extended to Calcutta mint as well. Though the

I Regulation \I of 1812, Sec. XV, Appendix A.23.

2 Appendix A.37 .
3 The local jewellers' weights at Benares were based on the following metrology:
8 chowals (or grains of rice) = I ratti
64 chowals = 8 ratti = I masha (I masha approx. 17. 7 troy grains)
768 chowals = 96 ratti = 12 masha = 1tola
CHAPTER 111 123

minting of Farrukhabad rupee did take place at the Calcutta mint, the proposal to mint
Benares rupees at Calcutta remained on paper.
b. Gold Currency:
The mintage of the gold muhrs at the Benares mint was not regular. A letter dated
16 September 181 1 states the quantity of gold coined in the Benares mint since 1782, only
amounted to 1,21 ,949 muhrs. 1 Weighing 168.44 troy grains (l0.91g) and with t he fineness
of 23 carat 1 grain, it was inferior both in weight and standard to the Calcutta muhr.2 Like
the silver rupees, the gold muhrs of Benares too bear the mint mark of fish on their
obverse.

c. Copper Currency:
When the East India Company assumed the control of the Benares mint in 1781 , a
copper pice weighing 138.490 grains troy (8.47g) was coined there. In 1786 the weight of
this coin was raised to 155.333 grains troy (l0.06g) and a mark of trident (Trisu f) was
added . Henceforth the copper pice of Benares was popularly known as the Tri'iUli paisa.
However, this change seems to have been effected at the local level , without any express
authority of any official regulation, for in 1806 we find Dr. Thomas Veld, the Mint Master
at Benares reporting that ' there is no regulation for the weight, size, or impression of
pice.') A large quantity of these trisuli coins was manufactured in ' Oudh, the Riwa Raja's
country, and other places and smuggled into circulation.,4 Yeld, therefore, suggested a
plan to establish a copper coinage for the Benares province, according to which four
denominations were contemplated, viz.

Denomination Weieht Exchange rate

Grs Gms with a Ru pee
Double Pice 240 15.55 32
Single Pice 120 7.77 64
Half Pice 60 3.88 128
Quarter Pice 30 1.94 256

I Thurston 1893 : 70.

2 Pridmore 1975 : 2 15 .
3 Thurston 1893 : 67.
4 Ibid.
CHAPTER III 124

Yeld did not recommend the minting of these pIeces at any other place but
Benares conceding to the ' prejudices of the natives of Benares', though he suggested that
'the machinery of the Calcutta mint could be used in laminating the derabs [coin blanks].'

No immediate steps were, however, taken to adopt this plan but eventually
minting of the first three denominations was undertaken at the Calcutta mint between
1807/08 and 180911 0, for circulation in the Benares province. The weights of these three
denominations were slightly less than what was initially recommended by the Mint
Master of Benares mint.

Denomination WeiJ!ht Excha nge

rate wit h a
Grs Gms
R upee
Do-Pai Sikka 192.298 12.46 32
(Double Pice)
Ek-Pai Sikka 96.149 6.43 64
(Single Pice)
Adha-Pai Sikka 48.074 3.11 128
(Half Pice)

The mint mark trident was omitted from these coins. To give cUlTency to these
copper pieces of Calcutta mintage in the Benares province, the East India Company, on 15
December 1809, enacted Regulation X of 1809 for the establishment of a copper coinage
in the province of Benares. It was to be of pure copper, weighing . Sicca weight eight
annas nine pie each' (= 6.23g) (Sec. III). It was denominated as 'One Pie Sicca' and bore
the name and the 3ih regnal year of Shah Alam II in Persian. Its exchange rate was fixed
at 'sixty-four pice for one Benares sicca rupee' , and it was declared legal tender of
payment in the province of Benares ' for any sum being the fractional part of a rupee '
(Sec. IV). However, as this time bracket was found to be impractical so as to withdraw all
other copper coins then circulating in the province of Benares, the implementation of this
Section was postponed by Regulation XII of 1810, which declared:

... copper coin, which has been hitherto current in the province of Benares,
shall continue to be received in discharge of all private and public
CHAPTER III 125

demands, until the Governor General in Councilor Vice President in

Council, shall signify by proclamation, that an adequate supply of copper
coin of the size and weight prescribed by Sec. III, of that Regulation
[Regulation 10, 1809], has been introduced into the province of Benares. I
With a view to deter the counterfeiters and fraudulent money-changers etc., the
Regulation declared 'melting, counterfeiting, clipping, filing, drilling, defacing, or
debasing' of the copper pie a criminal act liable for prosecution (Sec. V).

A transition period of six months was allowed for the acceptance of various other
sorts of copper coins then circulating in Benares, after which only Benares 'One pie
Sicca' was to be accepted as legal tender (Sec. VI). However, as even this time bracket
was soon found to be impractical to call in other copper coins then circulating in the
province of Benares, the implementation of this Section was further postponed by Xli of
1810, which declared that:

. .. the copper coin, which has been hitherto current in the province of
Benares, shall continue to be received in discharge of all private and public
demands, until the Governor-General-in-Council shall signify by
proclamation, that an adequate supply of copper coin of the size and
weight prescribed by the Section 3, Regulation X, 1809, has been
introduced in the province of Benares. 2
It is thus clear that the supply of copper coins from Calcutta fell far short of the
demand of that specie in the Benares province. To make the effects of this supply crunch
still worse, the sarrafs of Benares found it more profitable to export the new pice intended
for Benares to the neighbouring Bihar, where the demand for copper money was much
greater. 3 The worst hit by this situation were the people belonging to the 'lower classes of
the community' who were subject to 'the impositions and hardship .,. by the monopoly
and combination of the shroffs and money changers.,4 The Mint Master of Benares,
therefore, urged the Government to 'accelerate the introduction of a new copper coinage
into this Province, by allowing such copper as may be brought by Individuals to be coined
in the Benares Mint. ,5 It was also noticed that the sarrafs of Benares had also devised a

I Regulation XII of 1810, Sec. III, Appendix A.21.

2 Thurston 1893.
3T. Yeld, Mint Master, Benares Mint to Sir J.E. Colebbrooke and John Deane, Board of Conunissioners,
Province of Beneres, dated 18 December 1812: NAI, Finance Department, Mint Conunittee, Letters
Received, Vol. 1811-13,269.
4 Ibid.: 270.
5 Ibid.: 275.
CHAPTER III 126

novel way to depreciate the exchange value of the old trisuli pice that was sti ll current in
Benares province:

.. . since the ' trisoolee pisa' was originally established as the copper
currency of Benares, no measures had been adopted to renew it, and the
inscription had, by the process of time, become more or less indistinct, and
the shroffs had reduced the value of the pice in which the trisul '.vas
defective by reducing it 11 percent in current value for no other reason
than the defectiveness of the trisul. I
The Government responded to the need for establishing a copper curreney for the
Benares province by passing a regulation for the purpose.

Accordingly, Regulation VII of 18142 was passed on 29 April 1814, which

superseded the provision laid down in Sec. II of Reg. X of 1809 requiring the pice to be
shuck at the Calcutta mint, and provided for their minting at the Benares mint. While
there was no change in the weight of these coins (Pice= 6.23g), the mint mark trisul
(trident) was reintroduced in the design, viz.

In compliance with established usage, the figure of a Trisool shall be

impressed upon all the copper coin which may hereafter be struck at the
city of Benares. 3

By retaining trisul on the copper pice, the Government hoped that 'the coin cannot
circulate in any other Province. ,4 At the same time this move was also aimed a-t obtaining
'for the copper coin of the Benares mint, a local currency and circulation which the pice
coined in Calcutta did not possess. ,5

To undertake the minting of large quantity of copper, new machinery fabricated at

the Calcutta mint was installed at Benares in early 1815 and by May the production of
Trisooli paisa commenced. Though initially restricted to circulate in Benares province

I Thurston 1893: 72.

2 Appendix A.24.
3 Ibid.: Sec. !II.
4 Pridmore 1975 : 2 19.
5 Harrington 1814-1 5: 632.
CHAPTER III 127

alone, the circulation of Trisooli pice was extended to all the provinces of Bengal
Presidency by Regulation XXV of 1817, giving it a legal par with the Farrukhabad and the
Calcutta pice. The legal tender, however, as in other instance, was restricted to fractional
parts of a rupee, and the exchange rate of 64 pice to a rupee was retained (Sec. V).

The minting of Trisooli pice at Benares mint continued till that mint was abolished
in September 1829. The circulation of these coins was again restricted to the province of
Benares by Act XIII of 1836 and these coins were demonetized from 1 August 1844 by
Act XIII of 1844.

Minting Charges:
All the mints of the Company were open to the reception of bullion for coinage on
private account. All bullion intended for coinage was brought to the office of the Mint
Master, where it was examined by the processes of cutting and burning so as to ascertain
that there was no fraudulent admixture. After examination a receipt for the weight of the
bullion was issued to the proprietor of the bullion. A specimen of the bullion was then
taken to the Assay Office where it was assayed to ascertain its fineness. A deduction was
made 'from the assay produce of bullion to cover the expenses of coinage.' 1 After the
assay was over, the proprietor exchanged his mint receipt for a certificate 'of the standard
value of the bullion in gold or silver money.,2 This certificate was then converted into
cash at the Treasury as soon as the new coins were transmitted there from the mint.

The minting charges varied at the different mints of the East India Company. Up
to 1812, no charges were levied on the bullion sent to the East India Company's mints in
Bengal for coinage. Only a small charge for refining the metal of inferior standard was
levied. For all silver bullion, or old or light silver coin which were below the Sicca
standard (i.e. having alloy contents of more that 2.089 per cent), a refining charge of 12
annas per cent was levied under Regulation XXXV of 1793 (Sec. V). Similarly, on gold
bullion which was below the Gold Muhr standard fixed by the Regulation XXXV of 1793
(i.e. having alloy contents of more that 0.75 per cent), the proprietors of such bullion were
charged a refining duty depending on the alloy contents of the bullion (Regulation XXXV
of 1793, Sec. XXIV). While there was no refining charge on gold or bullion of, or above
the Gold Muhr standard, a duty of Rs.2.8 annas per cent (2Y2 per cent) was imposed by

1 Prinsep 1858: 9.
2 Ibid.: 8.
CHAPTERID 128

Regulation XXXV of 1793 'with a view to discourage the importation of Gold Bullion in
preference to Silver Bullion' (Sec. XXIV). Thus, coining charge or seignorage did exist
on gold coins under the Regulation XXXV of 1793. However, the receipts on these counts
were negligible and the entire expenditure on the mint establishment was borne by the
Government. According to a statement dated 27 April 1787 prepared by the Auditor of
Indian Accounts at the East India House, the Bengal Presidency suffered a loss of
Rs.93,670 on mint establishment during four years between 1781182 and 1786/87.

Table: Mint Accounts for 1781-82 to 1786-87

Year Receipts Disbursements Net

(in Rs.) (in Rs.) (+1-)
1781-82 25,789 44,777 -18,990
1782-83 39,214 58,538 -19,324
1783-84 11,861 37,138 -25,277
1784-85 * * *
1785-86 * * *
1786-87 15,319 45,398 -30,079
Total 92,183 1,85,853 -93,670
* Figures not available
Source: NAI, Home Miscellaneous, Vol. 87, 102-03;
NAI, Public, Letters from Court, dated 20 Aug. 1788.

With a view to turning government mints into a possible source of revenue or at

least offset a part of the mint charges, the Bengal Government, on 21 March 1812, passed
Regulation II of 1812 1, that instituted a duty of 2 per cent on silver and 2Yz per cent on
gold, exclusive of the refining charges that were levied earlier. This regulation
incorporated tables of produce of various sorts of silver bullion at the Calcutta,
Farrukhabad and Benares mints, and a similar table for gold coinage at the Calcutta mint. 2
An additional duty of 1 per cent was charged if the proprietor wanted his silver bullion
converted into halves and quarters of a rupee. (Sec. II: Third). The rate of refining silver
was also now fixed at 12 annas for 100 rupees. (Sec. II: Fifth).

As can be seen from the accounts of the subsequent years, the mints of the Bengal
Presidency were able to reduce their liability on the government.

1 Appendix A.23.
2Some inaccuracies were noticed in the calculations of the produce of gold bullion at the Calcutta mint,
which were later removed by passing Regulation XIV of 1818 on 9 September 1817.
CHAPTERm 129

Table: Mint Accounts for 1814-15

Mint Receipts Disbursements Net
Jin Rs.) (in Rs.) (+1-1
Calcutta 1,37,719 1,39,422 -1,703
Benaras 77,803 75,648 +2,155
Farrukhabad 7,865 74,695 -66,831
Total 2,23,387 2,89,765 -66,378
Source: Adapted from Harrington 1814-15: 647-48.

2. Madras Presidency - Bengal Laws and the Madras Presidency:

The process of passing regulations and legislations concerning comages and

currencies that is so manifestly witnessed in the case of Bengal presidency ever since the
passing of the Regulating Act of 1793 (33 Geo. III, c. 52), was apparently absent in the
case of Madras and the Bombay presidencies. To quote Edward Thomas:

The Madras and Bombay Governments seem to have pertinaciously

abstained from legislating on coinages and currencies, and their Statute
Books are altogether silent on these subjects, until the action of the
Supreme Government [i.e. Bengal] is brought to bear on them in 1835. 1
The reason for this situation are not far to seek. By the Regulating Act, 1773
(which came into operation in October 1794), Madras and Bombay presidencies were
subjected to the Bengal presidency so far as the commencement of hostilities or declaring
war against any Indian power or entering into any treaty of peace or other treaty was
concerned. For these actions they were required to seek prior approval of the Governor
General of Bengal and his Council. 2 Though these two presidencies were in no way
legally subordinate to the Bengal presidency for their internal administrations, including
the currency management, they did look upon it for guidance and support, and, therefore,
constantly and diligently transmitted true and exact copies of all orders and resolutions
and their acts in Council to the Government of Bengal.

The position of the 'Supreme Government' (Bengal) vis-it-vis the 'Subordinate

Governments' (Madras and Bombay) was further strengthened by the Pitt's India Act of
1784, which now empowered the Govemor-General-in-Council 'to superintend, control
and direct' the Subordinate Governments in matters relating to the application of the
revenues or forces in times of war. To make the subordination of Madras and Bombay
presidencies complete, the Pitt's India Act (1784) provided that these presidencies must

1 Prinsep 1858: 79.

2 Keith 1937: 71-2.
CHAPTERll 130

obey the Governor General unless they had received different orders from the Court of
Directors, which were not known to the Governor General. According to Keith, 'this new
rule for the first time established a real subordination.' 1

The dependency of the Madras and the Bombay Governments on the Bengal
Presidency in the matters concerning currency reforms in India was established by the
famous despatch of the Court of Directors in 1806. In their letter dated 25 April 1806, the
Court of Directors directed the Governments of Madras and Bombay to transmit their
reports to Bengal 'with all convenient dispatch, and that our Governor General lose no
time in reporting to us on the plan herein detailed [about the currency reforms in India] as
it applies to the several countries comprising British India; and also on such parts of the
reports from Madras and Bombay as may appear to require their notice. ,2

That the Madras and Bombay presidencies were guided in their actions concerning
coinages and currencies by the Bengal Presidency can also be illustrated by citing the case
of the Mint Committee of Calcutta that was initially constituted in 1792, and was
reconstituted in 1813 under an order of the Court of Directors (dated 3 September 1813).
This Committee was 'referred to upon questions connected with the mints at Fort St.
George and Bombay.,3

Committee of Finance (1805):

In 1805, the Madras Government appointed a second Committee of Finance to

review its financial stringency resulting from the failure of its attempt to raise a 10 per
cent loan earlier that year. 4 This Committee, composed ofT. Oakes, C. Smith, G. Buchan
and J. Taylor, inter alia also dwelt upon various problems of the coinage, especially the
multiple varieties of coin-types and denominations that plagued the Madras Presidency. In
its Report submitted to Lord William Bentinck, the Governor-in-Council of the Fort St.
George on 12 October 1805, the Committee recommended the introduction of the coinage
of Bengal as the sole currency of the Madras Presidency. 5 In its findings the Committee

I Ibid.: 97
2 British Parliamentary Papers, 1898, No. 127, para 41.
3 Harrington 1814-15: 616-7.
4 Ramachandran and Gupta 1971: 33.
5Refonn of the Coinage - Report of the Committee of Finance. IOL Coll. F/4/188, No. 123, quoted in Paul
Stevens 2004: 123.
CHAPTERID 131

had noted that the market rate of gold and silver was higher than the official rate between
gold pagoda and silver Arcot rupee which stood at 100:350. As a result the silver coins
disappeared from the market. The Committee, therefore, believed that introduction of the
coinage of Bengal would simultaneously introduce the exchange rate of Bengal. Had this
recommendation of the Committee been accepted, a greater part of Company's territories
in India would have seen the introduction of a uniform coinage. But this was easier said
than done.

The idea of having a uniform comage throughout India was questioned by

Benjamin Roebuck, the Assay Master of the Madras Mint, on the ground that there was
no evidence to prove that it would immediately establish a standard rate of exchange
between gold and silver throughout India. Dismissing the whole idea as 'laughable',
Roebuck asserted that it would 'no more effect the relative exchange between the
different Presidencies, than it would the exchange between Madras and China, or Madras
and London. ' 1

Meanwhile a general reform of the coinage of India was being actively debated in
the meetings of the Court of Directors in England. The results of these deliberations were
embodied in their dispatch dated 25 April 1806 to the Government of the three
presidencies in India, which settled the question of choosing the most appropriate metallic
standard for India. However, no time frame was prescribed by the Court to implement its
recommendations. 2

Madras Mint Committee (1808):

The 1806 despatch of the Court of Directors set the process of currency reform in
motion in the Madras presidency. Acting upon these directives, in 1808 the Madras
Government appointed a three-member Madras Mint Committee, to suggest steps
required to be taken to implement the currency reform recommended by the Court of
Directors. 3 Besides, the Committee was also asked to submit its recommendations for the
interior management of the Madras mint. 4

I Ibid.
2 British Parliamentary Papers, 1898, No. 127.
3 The three members were, Cecil Smith, John Hodgson and Edward Greenway. However, the composition of
the Committee changed from time to time. Stevens 2004: 136.
4 Ramachandran 1970a: 37
CHAPTER 1II 132

A. SILVER CURRENCY

In its report the Madras Mint Committee recommended that in compliance with
the directives of the Court of Directors, the currency system of their presidency should
adopt silver monometallism. The Madras silver currency at this time consisted of coins
struck under two different standards, viz. the Pagoda standard and the Rupee standard.

Earlier, by a Proclamation dated 15 July 1807, the Madras Government had

approved eight denominations of the silver coins _. four each under the two weight
standards.

Pagoda standard Rupee standard

Denomination Weight Denomination Weight
(in gms) (in gms)
1 Fanam 0.91 1/4 Rupee 3.02
2 Fanam 1.83 liz Rupee 6.04
3 Fanam - * 1 Rupee 12.09
5 Fanam 4.65 2 Rupees 24.19
* Never seemed to have been issued for general circulation.

5 Fanam
Two new denominations, viz. half-pagoda (21.17g) and quarter-pagoda ( I 0.S8g)
were approved under the pagoda standard by another Proclamation o :~ the Madras
Government dated 22 August 1807. Another denomination, namely one-eighth rupee or
two anna (1.51 g), was added to the coin series under the rupee standard by a Proclamation
dated 28 November 1807, though it did not achieve a general circulation.

The pagoda standard coins display distinct English design elements and have their
denominations inscribed upon them in four different languages - English, PI~rsian, Telugu
and Malayalam, which is indicative of their area of circulation. A Proclamation dated 28
November 1807 declared that the area of circulation of the silver half and quarter pagoda
was extended to include 'every part of the Dominions of the Honorable Company, subject
to the Government of Fort St. George.'

All these coins were struck from silver obtained from the imported Spanish dollars
and had the fineness of the dollar standard. The adoption of dollar standard for the silver
CHAPTER III 133

coins of Madras in the place of the Arcot Sicca standard was apparently based on two
premises. First, that is was harder and therefore less liable for wear, and secondly that
large denomination silver coins, viz. half pagoda and silver double rupee, which were
nearly of the same size as the dollar, could be struck without the necessity of melting the
dollars, and thereby assuring the dollar fineness without the necessity of assaying all
silver. 1 However, the assay and experiments of these coins conducted in the Tower Mint,
London, soon established that the dollar standard coin wear faster than the English
standard and that not all dollars had a uniform standard of silver. The Court, therefore, felt
that the standard should have remained the same as that of the old Arcot rupee. 2 However,
a large quantity of silver coins was already minted at Madras, with the help of new
machinery obtained from Calcutta. The Madras mint, which was shifted from inside the
Fort St. George to a new location at Mint Street at George Town, minted over 79.38 lakh
pieces silver coins of various denominations between April 1807 and March 1808. 3
Recalling this huge quantity of the recently issued coins was found impracticable and
therefore, these coins were allowed to remain in circulation, and the question of altering
the standard of fineness of the silver coins was postponed to a later date.

Meanwhile, the new coinage of 1807/08 came under sharp criticism of the Court
of Directors. In its letter dated 6 March 1810 to Fort St. George, the Court expressed
serious objections to the mUltiplicity of types of coins that comprised the new coinage at
Madras. 4 The Court, therefore, ordered that the coinage of Madras should consist of a
silver rupee coinage composed only of the following four denominations: Single rupee, 8
annas, 4 annas and 2 annas. 5

This letter, somehow, did not reach Madras till December 1811. 6 However, in
compliance of the Court's instructions, the next major step for currency reform was taken
by the Madras Government in 1812, when by a Proclamation dated 19 June the coinage of
double-rupees as well as of various denominations of the pagodas standard was

from Court to Fort St. George, dated 6 April 1808. 10L ColI. F/4/477, No. 11486, quoted in Stevens
1 Letter
2004: 134.
2 Ibid.
3 Stevens 2004: Tables 3-5, 126-8.
4 10L ColI. F/4/477, No. 11486, quoted in Stevens 2004: 138-9
5 Ibid.: 139.
6 Ibid.: 142
CHAPTER III 134

discontinued, and the silver currency was now confined to rupees, half-rupees and
quarter-rupees. The said Proclamation also laid down the weight and fineness of the
surviving denominations as follows:

Fineness
Weight Pure Silver Alloy
Denomination
(in gms) Weight Weight
% %
Jin~ms} (ingms)
Rupee 11.66 10.78 92.45 0.87 7.46
Y2 Rupee 5.83 5.39 92.45 0.43 7.37
Y4Rupee 2.91 2.69 92.43 0.21 7.21
Another denomination viz. one-eighth rupee weighing 1.46g with proportionate
fineness seems to have been added in 1813, which was to pass at the rate of 28 to one
pagoda.!

Though the weight of these COIns was less than the COIns issued under the
Proclamation dated 15 July 1807 - where the weight of the rupee was fixed at 12.09g -
their fineness was slightly better. The new rupee, in fact, had O.OOlg more of pure silver.
However, this fraction was so miniscule that it was decided to treat the old coins at par
with the new coins. Accordingly, old coins, both of the pagoda as well as the rupee
standards, were allowed to remain in circulation 'and be issued and received at the
treasuries at the same rate and value as heretofore. ,2 The exchange rate of old and the new
coin, designated in the said Proclamation as 'Arcot' and the 'Company' rupee
respectively, with the gold coin - the star pagoda - was fixed at 350 rupees to 100 star
pagodas. 3

Having abolished the pagoda standard from the silver comage, the Madras
Government now decided to institute the Arcot rupee as the standard of value and money
of account in the territories subordinate to the Madras Presidency, and thus establish the
silver monometallism that was urged upon by the Court of Directors in their despatch
dated 25 April 1806.

By a Proclamation dated 9 December 1817 Madras silver rupee was declared 'the
standard circulating medium. '

I Pridmore 1975: 37.

2 Thurston 1890: 44.
3 Ibid.: 45.
CHAPTER 1II 135

By another Proclamation dated 7 January 1818, the fineness of the Madras rupee
was re-adjusted. While it retained the old weight of ll.66g, the standard of fineness or the
pure silver contents were reduced to 10.69g. The same weight and standard. of fi neness
was also adopted for the gold currency - the Gold Rupee - which then superseded the
long-established Star Pagoda. Thus the Madras silver Rupee became the standard
circulating medium of the Madras Presidency and retained its characteristics when it was
assimilated in a general plan to establish a uniform currency for all the three Presidencies
of the East India Company in 1833.

It would also be interesting to note that Madras Rupees were extreme ly popular as
circulating medium in Chittagong and Dacca districts of Bengal Presidency. Till 1757, the
Company did not possess any mint in Bengal and therefore, all its requirements fo r coined
money were met by the Madras mint, where silver rupees bearing the mint name
Chinapatan were regularly coined since 1692.1 Since south India had a p redominantly
gold based currency regime, most of the silver output of various mints of the Madras
presidency was shipped to Bengal. Bengal also subsumed a large quantity of Arcot rupees,
initially struck by the Nawab of Arcot but later also coined by the English and the French
Companies. The Arcot rupee was 'lower in value than the Bengal Sicca rupee, but despite
this, it was imported by the merchants of Calcutta in large quantities.,2 The popularity of
Arcot rupees in Bengal was an enigma for the Company's administrators too. Prinsep
notes that ' from some reason or other, perhaps from commerce between two places, the
Chittagong and Dacca currency formerly consisted of Arcot rupees.,3 It is quite likely that
economic factors such as easy liquidity of Arcot rupees in Bengal as well as profit due to
metal price disparity between the two regions must have contributed significantly in
popularizing their use in Bengal. We have evidence that during 1823-25 Madras Rupee of
1818 standard were also minted at the Calcutta Mint for circulation in these districts.

I Pridmore 1975: 23 .
2 Ibid.: 8.
3 Prinsep 1858: 24 .
CHAPTER III 136

B. GOLD CURRENCY

Since 1740, the established gold currency of Madras was 'Star ' Pagoda of 3.40g,
which derived its name from the five-pointed star which occupied the dotted or granulated
field on the reverse . The obverse showed a standing figure of Vishnu.

This coin is referred to the in the official records as the 'Madras current or Star
Pagoda.' To encourage people to bring their gold bullion to the Mint to be coined into the
Star Pagoda, the Y2 per cent mintage was suspended for six months in 1742.' The Star
Pagoda soon became the principal circulating medium of the gold coin in the Madras
Presidency, except for the Northern Circars and Hyderabad, where an old variety, viz. the
' 3 Swami ' pagoda was more popular.

For nearly seven decades, the Star Pagoda minted at the Madras M int remained the
only denomination of the gold coin. In 1808, two new denominations, viz. Two Pagoda of
5.94g and a Pagoda of 2.97g were added to the gold currency by a Proclamation dated 3
February 1808.

However, the Madras Presidency was working towards implementation of the

Court of Directors' recommendation to establish a general silver currency. Even since the
introduction of the Arcot Rupee into the general currency of Madras in 1749, the
established exchange rate of 1 Star Pagoda was 31h Arcot Rupee, or 42 silver fanams .2
However, the pure silver contents in the exchanged value of Arcot Rupees and silver
fanams (3Y2 and 42 respectively) varied as 3Y2 Arcot Rupees contained 0.5 Lg more fine
silver than 42 silver fanams, both of which exchanged for one Star Pagoda - which, in

1 Pridmore 1975: 27.

2Despatch from the Court of Directors, to the Governments of Bengal, Madras and Bombay, dated 25 April
1806, British Parliamentary Papers, 1898, No. 127, para 26.
CHAPTER III 137

tum, was the money of account in all transactions. It was, therefore, felt necessary that all
public accounts should be kept in the same denomination of rupees, annas and pice. I The
Committee of Reform established by the Madras Government in 1799, therefore,
recommended (para 54 of their report) that their accounts of the Madras Government
' might be assimilated as much as possible to the Government accounts of Bengal and
Bombay' , where silver rupee was the money of account.

No action seems to have been taken on the recommendations made by the

Committee of Reforms in 1800, until its plan was endorsed by the Court of Directors in
their despatch of 1806. 2 Even, thereafter there was a lapse of over a decade when finally
in 1817 a Proclamation was issued on 9 December by which the coinage of Star Pagoda
was discontinued and the Madras (Arcot) silver Rupee was declared as the standard
circulating medium. By a further Proclamation dated 7 January 1818, a gold ' rupee' or
muhr equivalent in weight and fineness with the silver rupee, each weighing 11 .66g and
containing 10.69g of fine metal, was established as the gold currency. The gold ' rupee'
also had two fractional denominations, viz. half rupee/ muhr (5.88g) and quarter rupee/
muhr (2.91g).

In a major move to establish the Company' s sovereign position through its coins.
the gold rupee, which till now bore the name and titles of the Mughal ruler, were ordered
to be redesigned, so as to bear name, Arms and Crest of the East India Company. On 7
August 1818 the Mint Master of the Madras Mint submitted the specimens of the new
designs which were immediately approved by the Governor of the Madras Presidency.
The redesigned gold coin was denominated as Ashraji, and bore the Arm s of the East
India Company on the obverse and the value and the name of the Company - Ashrafi
Kampani Angrez Bahadur - in Persian on the reverse:

Ashrafi , 1817
The half and the quarter denominations were called Nim Ashraji and Pau Ashrafi

1 Ibid.: para 21.

2 Ibid.
CHAPTER III 138

respectively and bore the crest of the East India Company on the obverse and the value in
Persian on the reverse. All these denominations were announced to the public by a
Proclamation dated 9 March 1819.

The last change in the gold currency of the Madras Presidency was in 1820. It was
then recommended by the Mint Committee that for the convenience of computation, the
gold rupee should be divided into thirds instead of halves and quarters, so that 'Y3 gold
ashrafi would be equivalent to 5 silver rupees. Thus, the fractional denom inations of half
and quarter gold ashrafi were replaced by a new one called Pan} Rupiya or 5 rupees,
weighing 3.88g and equivalent to the 'Y3 of a gold ashrafi.

This measure had its precedent in the Bombay Presidency where 'Y3 gold muhr.
called Panchia weighing 3.86g was introduced in 1801 , primarily due to the scarcity of
silver. The Madras Pan} Rupiya was similar in design to the half and quarter ashrajis that
it had replaced, viz. it had the Crest of the East India Company on the obverse and the
value written in Persian on its reverse. Henceforth, the gold coinage of the Madras
Presidency, except for a small coinage of gold half rupees struck during 1822-23,
consisted entirely of the ashrafi and its 'Y3 fraction.
C. COPPER C URRENC Y

The Madras Presidency had a large variety of copper coms. The varIOUS
denominations can be grouped under three nomenclatures, viz. Dudu, Cash and Dub.
The weight of the dudu was regularized in the middle of the eighteenth century,
and was fixed at 6.30g for the full and 3.14g for the half dudu piece. The copper coinage
of Madras underwent a change in 1803, when four new denominations called ' Cash ' were
introduced.
Weight
Denomination
(in gms)
XX Cash 12.95
X Cash 6.47
V Cash 3.23
I Cash 0. 64
CHAPTER III \39

V Cash I Cash
All these COInS were struck at a private mint (Metthew Boulton) at Soho,
Birmingham. Their design - showing Arms of the Company with date ' 1803 ' on the
obverse of XX, X, and V Cash and the crest of the Company on the I Cash denomination
along with the value of the coin in Persian and English on the reverse - was prepared by
Company' s Librarian, Charles Wilkins, and the dies were engraved by John Philip of
Metthew Boulton.

The reason for this experiment of European minting of copper COInS for the
Madras Presidency can be traced to 1786, when the Court of Directors entered into a
contract with Messrs Boulton and Watt of Soho, Birmingham for the supply of copper
coinage for the British settlement on the west coast of Sumatra. According to Pridmore,
' struck by machinery developed by Boulton, the Directors had evidently decided that the
supply of minor copper coinage could be effectively executed in England, and produced
equally as cheaply as in their mints in India, notwithstanding the higher price of copper in
Europe and the freight costs. ' J

These coins of four denominations were sent to Madras where these were
immediately pushed into circulation. However, shortly thereafter, whm a general reform
in the currencies of the Madras Presidency was made in 1807, the copper coinage also
underwent a change. It appears that the copper coins of the European minting were in
short supply and had limited circulation. Consequently, the Proc\amarion of the Madras
Government on 22 August 1807 was issued ' with a view to remedy the inconvenience

I Pridmore 1975 : 34 .
CHAPTER III 140

which have hitherto been felt from the want of a proper copper coinage in the Honorable
Company's Districts under this Presidency' (para 1). The Proclamation issued 'New
Copper Coinage' under two series: The first series (Dubs) was meant for the Northern
Circars while the second series (Cash) was for other districts of the Madras Presidency.

Dubs (called fulus lit. 'a copper coin', on the coins) were struck at the new Madras
mint which began operations in the spring of 1807. The following denominations were
struck.
Double Dubs 20.61 g @ 24 to the Rupee or 84 to a Pagoda
Single Dub 10.31 g @ 40 to the Rupee or 168 to a Pagoda
Half Dub 5.15g @ 96 to the Rupee or 336 to a Pagoda
QUaJ1er Dub 2.57g @ 192 to the Rupee or 672 to a Pagoda
Regulating Dub 7.56g @ 229~ to one Pagoda

Double Dub

Half Dub
The Regulating dub was essentially for computation purposes and to facilitate
payments made in cooper dubs. In the same Proclamation, the exchange rate of various
Dub coins with new silver fanam (0.92g) was fixed as follows:

1 Fanam = 3 single Dubs + one Regulating Dub

= 6 half Dub + one Regulating Dub
= 12 quarter Dub + one Regulating Dub
Interestingly, the inscription on the Regulating Dub mentions the value as well as
its exchange rate with the silver fanam, viz. In sikka wa seh falus yak falam khurd ast [or
'this coin and three falus are [equal to] one smallfalam [fanam].'
CHAPTER 11\ 140

which have hitherto been felt from the want of a proper copper coinage in the Honorable
Company' s Districts under this Presidency' (para 1). The Proclamation issued ' New
Copper Coinage' under two series: The first series (Dubs) was meant for the Northern
Circars while the second series (Cash) was for other districts of the Madras Presidency.

Dubs (calledfulus lit. 'a copper coin ', on the coins) were struck at the new Madras
mint which began operations in the spring of 1807. The following denominations were
struck.
Double Dubs 20.61 g @ 24 to the Rupee or 84 to a Pagoda
Single Dub 10.31 g @ 40 to the Rupee or 168 to a Pagoda
Half Dub S.lSg @ 96 to the Rupee or 336 to a Pagoda
QUaJ1er Dub 2.S7g @ 192 to the Rupee or 672 to a Pagocia
Regulating Dub 7.56g @ 22912 to one Pagoda

Double Dub

Half Dub
The Regulating dub was essentially for computation purposes and to facilitate
payments made in cooper dubs. In the same Proclamation, the exchange rate of various
Dub coins with new silver fanam (0.92g) was fixed as follows:

1 Fanam = 3 single Dubs + one Regulating Dub

= 6 half Dub + one Regulating Dub
= 12 quarter Dub + one Regulating Dub
Interestingly, the inscription on the Regulating Dub mentions the value as well as
its exchange rate with the silver fanam , viz. In sikka wa seh falus yak falam khurd as! [or
' this coin and three falus are [equal to] one small falam [fanam]. '
CHAPTER III 141

Cash
Weight
Denomination
(in J!ms)
XL Cash 19.31
xx Cash 9.65
X Cash 4.82
V Cash 2.41
2Yz Cash l.21
It could be seen that while an exchange rate of the Dub and the silver and gold
currency was officially fixed, no such attempt was made with regard to the coins issued
under the 'cash' series.

As expected, this led to confusion in the money market and shortly thereafter an
agreement was reached with the sarrafs of Madras to fix the exchange rate as follows:

Silver Copper
Denomination
Fanam Cash
One Pagoda 44 70
Half Pagoda 22 35
Quarter Pagoda 11 17Yz
One Rupee 12 65
Half Rupee 6 32Yz

The Government agreed to supply to the shroffs adequate quantities of fanams and
copper coins of different denominations so to enable them to carry on their business of
money exchange smoothly. The details of this Agreement were announced through a
Proclamation dated 28 November 1807.

Coins of both the series (Dub and Cash) were minted at the new mint erected in
the black town in Madras. Between August 1807 and March 1808, a total of 84.34 lakh
pieces of different denominations of the above mentioned copper coins were minted.!
Now 'Cash' series of the European mintage and 'Cash' series of Madras mintage, of
which three common denominations (XX, X and V Cash) that followed two different
weight standards, circulated indiscriminately, since the former was not withdrawn from
circulation before the latter was issued. In a bit to rationalize their weights, the weights of
the two denominations of the European mintage (XX and X Cash) were reduced in 1808.

I Stevens 2004: 126 and 129, Tables 3 and 6.

CHAPTERID 142

European Minta2e
Madras
Denomination 1803-08 1808
Mintage
(Old Wei2ht) (New Wei2ht)
xx Cash 12.95g. 9.33g. 9.65g.
X Cash 6.47g. 4.66g. 4.82g.
V Cash 3.23g. 3.23g. 2.41g.

But still the weights of the coin of the two mintages were not at par.

During 1824 copper coins of altogether different denominations were struck for
the Madras Presidency. These coins called 4 pice, 2 pice and one pice were struck at the
royal mint at London and showed the Anns of the Company on the obverse and the value
in Persian on the reverse. According to an estimate, a total of 19,003,880 pieces were
minted between 1824 and 1825.

Number of ppieces
Denomination
Minted
4 Pice 71,36,448
2 Pice 71,26,104
1 Pice 47,41,328
Total 19-,003,880
However, all denominations remained in circulation until 1835 when the universal
copper coinage was finally introduced.

The statute books of the Madras Government commence from the year 1802
when, on the model of the Bengal Presidency, a regular code for all regulations passed by
the Government of Fort St. George was established. However, as has been noted in the
beginning of this section, these statute books are generally silent on the question of
coinage and currency. These issues, as we have seen, were regulated over the years by
issuing proclamations under the authority of the Governor-in-Council of the Government
of Fort St. George.

The earliest regulations passed by the Madras Government, nevertheless included

some provisions so far as the trade in bullion, both internal and external, was concerned.

3. Bombay Presidency:

As noted under the Madras presidency, the silence of the Statute Books on the
subject of coinage and currency legislation is also witnessed in the Bombay presidency.
Much of the changes which were introduced in the coins and currency system of this
presidency, were thus by way of Proclamations issued under the authority of Governor-in-
CHAPTER III 143

Council, as had been the case in the Madras presidency.

A. SILVER CURRENCY

After the minting of silver rupees was suspended in Bombay in 1778. the Bombay
mint had been practically shut down, and all the minting activities were operated from the
Surat mint. However, in May 1800 the East India Company secured the control of the
Surat mint and following this move, ' the Surat Rupee was adopted by the Company as the
standard currency unit for western India. " From November 1800, the Bombay
Government started minting silver rupee of the Surat standard - 11.60g with 92.03%
(l0.67g) pure silver and 7.97% (0.92g) alloy - at the Bombay mint. These rupees were
called ' 46 san Surat rupees.,2 Shortly thereafter this standard was regu larized by a
Proclamation dated 27 January 1801.

The move to adopt silver monometallism and a rupee of uniform weight and
fineness throughout the territories of the British India that was declared the most
important agenda for currency reforms in India by the 1806 despatch from t he Court of
Directors, played a catalytic role in the Bombay Presidency as well.

The views of the Court of Directors on the introduction of silver mOllometallism

and uniformity of coinage throughout India, however, drew sharp criticism by H. Scott,
the Assay Master of the Bombay Mint, who argued that unlike the Bengal presidency,
silver was no longer the principal circulating medium in the Bombay pre~: iden cy and
'most of the ordinary business of the place was carried without the assistance of silver. , 3
Describing the monetary economy of the Western India as the one based on go ld standard,
Scott informs that ' silver has really lost here one of the great qualities that usually attend
the precious metals the straitness (sic straightness) of their value at all times and by which

I Pridmore 1975: 126.

2 Anon. 1986: 9.
3H. Scott to F. Warden , Secretary to the Government of Bombay, 7 December 1806, para 14. NAI , Home,
Public, Proceedings Volume, 22-29 January, 1807, 327.
CHAPTER III 144

they are so fitted to become the measure of value of every other kind ofprope lty.' I

During this period, apart from the presidency mint at Bombay, the East India
Company had under its control the mints at Surat and Broach, which it had taken over
from the local rulers in 1800 and 1803 respectively. 2 In a bid to establish a greater control
over the quality of coin production, the Bombay Government was pursuing a policy of
suppressing the mints in the region. In this process the coinage of silver was closed at the
Broach mint in 1814. 3

Next year, the Surat mint too was closed and all its minting operations were
transferred to Bombay. This change was announced through a public notice published in
the Bombay Gazette dated 31 October 1815.

With the closure of the Surat mint, the Bombay mint came under heavy pressure to
meet the demands of the silver currency. With a view to easing this pressure, plans were
finalized to get the Bombay 'Sural' Rupee minted at Calcutta. Between the financial years
1822-23 and 1824-25, a total of 30 lakh rupees were minted at the Cakutta mint on
account of the Bombay government. The first lot of these rupees were released somet ime
towards the end of 1823, as we learn from a notice dated 19 December 182:1 issued to the
Collector' s of various districts under the Bombay Presidency.4 In this Notice the
Collectors were informed about the rupees of the new coinage being in circulation. No
fractional divisions of the rupee of this type were minted.

These rupees were of superior mintage and machine-struck, as compared to the

hand-struck or hammered coinage of the Bombay! Surat mintage.

However, it was soon found that these coins were susceptible for counterfeiting. In

I Ibid. : 330-1
2 Stevens 2004d: 25-32 .
3 Ibid.
4 Pridmore 1975: 134 .
CHAPTER III 145

a letter dated 7 November 1829, Major John Hawkins of the Bombay Engineers drew the
attention of the Bombay Mint Committee towards 'great and increasing want of the silver
currency and ... extensive counterfeits of the old rupees in the Deckan.' According the
Hawkins, 'I have seen several of the milled Bombay Rupees struck in Calcutta
counterfeited in this side of India, and accordingly well executed.' I

This experiment of the Government of Bombay to meet its demand of silver

currency from Calcutta proved to be a failure. It was then decided to augment the minting
operations of the Bombay mint. A plan to construct a new mint at Bombay, which was
half the capacity of the proposed mint at Calcutta, was prepared in 1824. The plan to
construct the new mint at Bombay was approved by the Governor-in-Council on 10
November 1824 and the construction work was assigned to Capt. John Hawkins, who had
earlier successfully completed the construction of the Town Hall building, following the
death of its architect, Col. Thomas Cowper.2

Meanwhile, the Bombay Government also decided to implement the

recommendation of the Court of Directors. The successful example of the Madras
Government was also before them, where an Arcot rupee of 11.66g was adopted as the
standard currency in 1818. By a Proclamation dated 6 October 1824, the Surat rupee of
the Bombay Presidency was assimilated to the Madras standard. It was to weigh 180
grains (1 1. 66g) with 165 grains (10. 69g) or 91.66 per cent of pure silver and 15 grains
(0.97g) or 8.33 per cent of alloy. The new rupee was designated as Bombay Rupee and,
along with its subdivisions, it was declared 'at par with the present Bombay rupee and its
subdivisions, within the territories subordinate to this Presidency, and as such receivable
wherever the present Bombay rupee and its subdivisions are current as a legal tender in all
public and private transactions.'

Following the completion of a new mint at Bombay in 1829, suggestions were

made to adopt a new design for the silver currency. Hawkins was of the opinion that the
design should be such that would render its counterfeiting most difficult. In his letter
dated 7 November 1829 to JD Devitre, President of the Bombay Mint Committee,
Hawkins writes: ' ... a well engraved human head is the most difficult to be imitated by

I NAI, Mint Committee, Letters Received, Vol. 1826-1830,489.

2 Anon. 1986: 4.
CHAPTERll 146

the Natives of India, and next to it the human figure or that of animal.' 1

However, on the question of a new design the Court of Directors, had already
communicated their views in their despatch of 27 May 1829, wherein they had ordered
that the gold and silver coins should continue to have 'the present inscriptions and of the
same denomination.' The Mint Committee, therefore, refused to deviate from the
instructions of the Court, and by July 1832, all preparations were completed to issue the
Bombay rupee of 'improved form and impression, but of the same weight and standard as
the present current money.' The prototype for these coins was the Bombay Rupee minted
at Calcutta during 1823-24. The minting of these coins of 'improved' design commenced
at the Bombay Mint in September 1832 and they were declared current by a Proclamation
dated 17 October 1832. By this Proclamation, four denominations of the silver currency
were announced, viz.:
The Bombay Rupee
The Bombay Half Rupee
The Bombay Quarter Rupee
The Bombay Eighth of Rupee or two anna piece
The last named denomination, however, remained on paper and was never minted.

Coinage of this new improved silver currency continued at Bombay until

December 1835 when the Company's universal Rupee replaced it.

B. GOLD CURRENCY

At the time of reopening of the Bombay mint for coinage of silver in 1800, a
recommendation was made in the report prepared by the Mint and the Assay Master that
the exchange rate between gold and silver be fixed as one to fifteen, and that the weight
and fineness of both the gold muhr and the silver rupee be the same, viz. weight 179
grains (11.60g) with 164.74 grains (1O.67g) of pure metal and 14.26 grains (0.92g) of
alloy.2 The minting of gold coins recommenced at the Bombay mint in 1801 when Gold
Muhrs were allowed to be coined on account of a private firm - Bruce Fawcitt and
Company. This full denomination was also supplemented by fractional denominations.
The first of these was authorized in May 1801. It was called Yl muhr (3.86g). As it passed
at the rate of 5 rupees, it soon acquired a popular name 'panchia.' The second fractional

1 NAI, Mint Committee, Letters Received, Vol. 1826-1830,490.

2 Report of the Assay and Mint Master, dated 28 November 1800 - quoted in Pridmore 1975: 130.
CHAPTER III 147

denomination was the same as li'5muhr of 1775 mintage. It weighed 077g and was

declared legal tender and equal to one silver rupee. Thus in 1801, a gold currency was
established in the Bombay presidency with the following three denominations.

Wei~ht Value in
Denomination Grs Gms Fineness Silver
Rupee
Muhr 179.0 11.59 I5

+Muhr or Panchia 59.6 3.86 92% 5

liS Muhr 11.9 0.77 I

Bombay (Surat) Muhr Bombay (Surat) is Muhr

By a Government Order dated 3 February 1802, the fineness 0 f the above-

mentioned denominations was increased by two per cent. In a move to assimilate the gold
coins to the new weight standard of the silver coins that was established in 1824, the
weights of the gold coins were slightly increased in 1825 as follows:

Old Weieht New Weieht

Denomination
Grs Gms Grs Gms
Muhr 179.0 11.59 180 11.66

* Muhr or Panchia 59.6 3.86 60 3.88

nMuhr 11.9 0.77 12 0.77

With the new weight standards, these three denominations continued to be minted
at Bombay till 1833.

C. COPPER CURRENCY

The supply of copper coins from England stopped after the last shipment in 1794,
and by the turn of the century the demand for copper currency was once again soaring in
the Bombay presidency. In 1802, a proposal to revive the coinage of copper coi ns in the
Bombay mint was submitted to the Government by the Mint and Assay Masters. It was
noted by them that if the same weight standard as that of copper coins of English mintage
was adopted there would be a great loss, since the price of copper has gone up. They,
therefore, suggested that the weight of the full denomination should be reduced to 164
CHAPTER III 148

grains (1 0.62g). They also recommended scrapping of the denomination of one and a half
pice, as it was frequently mistaken either for the Double Pice (8 reas) or the Single Pice (4
reas), and was hardly necessary for the accounts purpose. Both these recommendations
were accepted by the Government on 15 November 1802 and a new series of copper price
commenced at the Bombay mint. The design of these coins was copied from the 1791-94
series, but the execution was much cruder. The new series initially had four
denominations, to which another one, namely Quarter Pice was added la ter.

Weight
Denomination
Grs Gms
4 Pice 656 42.51
2 Pice 328 21 .25
1 Pice 164 10.62
1,12 Pice 82 5.31
1;4 Pice 41 2.65

It was soon realized that even at the reduced weight the minting of copper coins at
Bombay was still an expensive and unprofitable affair. In a letter dated 12 December
1802, the Mint and Assay Masters recommended that it was ' desirable to have the Copper
Money sent hither from England.' The Bombay Government accordingly wrote to the
Court of Directors requesting them to send the copper coins worth one lakh ru pees.

The Court of Directors placed orders for this supply with the Soho Mint at
Birmingham. For these coins the denomination and the weight standard of the 1791-94
mintage was adopted, but with a modified design. Though the reverse of these coins was
same as the earlier series, the obverse now bore the Arms, motto and the titles of the East
India Company instead of their balemark.

However, unlike the 1791-94 series only three denominations of the copper coins
of Soho Mintage are known; One and a half pice, though mentioned in the mint records,
CHAPTERm 149

has not been traced so far.

Denomination Weh!:ht
Grs Gms
Double Pice 200 12.95
1Y2 Pice* 150 9.71
Pice 100 6.47
Half Pice 50 3.23
*Not traced.
These coins would have only temporarily offset the pressure on the copper coins
of Bombay mintage, whose minting is reported to have continued, though not all
denominations were struck each year. The huge quantities of copper coins minted at
Bombay can be judged by a report dated 15 September 1819, according to which, copper
coins worth 2,77,357 Rupees, producing 1,71,79,650 pieces of pice, half pice and the
quarter pice were struck during 1809-19.
In 1819, the minting process of the Bombay mint underwent a change with the
installation of new machinery. At the same time plans were also formulated to replace the
existing copper coins of twin weight standards (100 grain English minting and 164 grain
Bombay minting) with a uniform weight. The new weight was to equate the pice to a
quarter of an anna, resulting in a change in its exchange rate from 50 to 64 pice per silver
rupee. Under this scheme four denominations were suggested; viz., Anna, Half Anna,
Quarter Anna and Pice.
The specimens of the above denominations struck with the machinery installed at
the Bombay mint in 1819, were submitted to the Government on 5 December 1821, and
patterns of the Half Anna and the Quarter Anna denominations have also been noticed. I
However, these coins were never struck for general currency and the plan was shelved,
though temporarily, as we would see.
The issue of copper coinage at Bombay presidency was scrutinized by the Court of
Directors and in their despatch dated 27 March 1829, they authorized the following three
denominations for the copper coins:
We!ght
Denomination
Grs Gms
Half Anna 200 12.95
Quarter Anna 100 6.97

Pice or Ii Anna 33~ 2.15

I Pridmore 1975: 178, Coin Nos. 334-335.

CHAPTER III 150

By 1829, the construction of the new building of the Bombay Mint was complete
and its production began in November 1830 with the issue of the new copper coin
authorized by the Court of Directors. By a Proclamation issued 29 November 1830 the
above mentioned denominations were declared 'legal tender to the amount of a rupee and
its fractional parts, in all public and private transactions through out the provinces subject
to this Presidency.' Their value in term of exchange was fixed as follows:
32 Half Anna or 64 Quarter Anna 1 Rupee
12 Pie 1 Anna

The design of these coins was adopted from the Pice series that was struck in
England during 1804, with the addition of the value of the coin in English characters on
the reverse. The same denominations of the copper coins continued to be struck and
circulate in Bombay till well after the introduction of the Universal Currency by the East
India Company, and it was only in 1844 when it was replaced by the universal copper
coins ofthe East India Company.

Thus, we see that for regulating comage and currency, the Government of
Bombay, like that of Madras, resorted only to issuing Proclamations. The only pieces of
legislation regarding the questions of coinage and currency in the Bombay Presidency
relate either to the transit, import! export of treasure (coin or bullion) or to check the
menace of counterfeiting of coins. The coinage of Bombay during this period show a
phase oftransition from the gold based economy to silver.

4. Other Measures:

A. CUSTOMS, TRANSIT AND TOWN DUTIES AND MONETARY POLICIES

After the grant of the Diwani rights of Bengal, Bihar and Orissa, the Company had
developed its own tariff system. However, all the three presidencies were independent of
each other so far as the regulation of customs and transit duties were concerned. 1 'The
result was that not only did each Presidency administer its own customs department, but

I The term 'Customs duty' has been used in this work to denote the duties on import into and export outside
India, while 'Transit duty' has been used for duties levied on inland trade of India. However, in the sources,
the word 'Custom duty' is frequently used to describe the duties on inland trade as well; sometimes
distinguishing the two by using 'Sea customs' for duties on export! import and 'Land customs' for duties on
inland trade. Both Banerjea and Borpujari agree that 'the British deliberately confused these terms so as to
apply to the inland trade of India the concessions they had acquired from the native Indian rulers regarding
the payment of customs duty on the foreign trade ofIndia.' Banerjea 1928: 209; Borpujari 1973: 218.
CHAPTER III 151

had its separate tariff.' 1 However, the fact that all these regulations passed by the
presidency governments were subject to final approval by the Court of Directors and the
Board of Control, ensured some degree of similarity in the tariff structure, though
uniformity was still elusive. 2

a. Bengal:

In Bengal the customs and transit duties were administered by a Board of Customs
under the Revenue Department. In 1793 it was transferred to the Commercial Department
of that Government. In 1797, the Company introduced a duty of one per cent on all
imports and exports from the Calcutta port. This levy was in addition to the existing duty
of 2.5 per cent charged on a large variety of goods, including those goods that were then
exempted from duties. However, all bullion and coins imported or exported from the
Calcutta port, were exempted from this new levy (Regulation I of 1797, Sec. 111\

Similarly, when a cess known as the 'Calcutta Town duties' that was abolished in
1795 and was re-introduced in 1801, the exempted list included 'bullion and coins' as
well as copper imported from Madras. (Regulation V of 1801, Sec. II: Sixteenth 4 ).

In 1803, while organizing the Ceded Provinces, it was decided by the East India
Company that all rahdary or transit duties in these territories should be abolished and
instead Government customs and the gunj (market) duties may be levied on goods. Once
again an exemption was made for bullion, whether imported into or exported from the
Ceded Provinces. However, in a clever move to keep a tab on the quantity of bullion
movement, a provision was made in the Sec. XIII of the Regulation xxxvrn of 1803 5
that 'the value and quantity of these articles must, however, regularly entered in the
Custom House books.' This measure was later found to be impractical and was, therefore,
rescinded by Regulation IX of 1810. 6

1 Report of the Select Committee on the Affairs of the East India Company, 1810, quoted in Banerjea 1922:
8.
2 Banerjea 1922: 8-9.
3 Appendix A.8.
4 Appendix A. 10.
5 Appendix A.II.
6 Appendix A.20.
CHAPTER III 152

By Regulation XV of 1825, 1 the import of bullion and coin from Britain, Europe
and the United States of America were also declared free from any duties or levies.

While bullion and treasure was exempted from the customs, transit and town
duties in the Bengal Presidency, a duty of 5 per cent ad valorem was levied on cowries
imported by sea at Calcutta, Chittagong and Balasore. 2 This was obviously aimed to
support the currency policy of the Company which sought to substitute cowrie currency of
Orissa and Bengal, with that of a metallic currency.

b. Madras:
In Madras too right from the beginning the bullion and treasure were kept out of
the tariff net. Here the revision of customs regulations took place in 1781 and again in
1786. 3 A series of regulations aimed at regulating the import and export of different
merchandise, both by sea and the land routes, were passed by the Madras Government in
1803. A common feature of these regulations is that treasure and bullion were placed in
the exempted list and no duty whatsoever was levied on trade of these commodities
(1803: Regulation IX, Sec. XXVV; Regulation XI, Sec. XXIII and Regulation XII, Sec.
XXX4).

Similarly, when 'Town duties' were introduced in Madras by Regulation X of

1803,5 the exemption list included treasure and bullion (Sec. XIX). However, like the
regulations of Bengal, the quantity and value of all treasure and bullion, whether imported
or exported, was required to be registered at the custom house or at the check posts
situated at the transit points.

c. Bombay:
The earliest legislation concerning export and import of bullion appearing in the
statute books of the Government of Bombay is dated 14 May 1805. By Regulation I of
1805 6 the Bombay Government ruled that all treasure imported into that presidency would
be opened and examined at the custom house. Though no import duty was to be levied on

I Appendix A.36.
2 Milburn 1825: 264.
3 Banerjea 1922: 32.
4 Appendix B.I, B.3 and B.4.
5 Appendix B.2.
6 Appendix C.I.
CHAPTER III 153

the bullion thus imported, the said regulation prescribed that no bullion would be
permitted to be imported or exported without a manifest (Sec. XVII).

In 1810, the Bombay Government also decided to reintroduce the 'town duties'
which had ceased to exist since April 1805 (Regulation I of 18101). However, bullion was
exempted from this duty.

In 1813, an export duty was introduced on coin or bullion to foreign nations.

Regulation X of 1813 2 prescribed a duty 'to be levied on all coin or bullion exported from
Bombay or from any part subordinate thereto, either to America or Europe, at the rate of
three percent if exported on British vessels and six percent if exported on foreign
bottoms' (Sec. IX).

Thus, we see that while bullion and treasure was generally free from various duties
under the Company's government, some measures were undertaken to record and quantify
their movement, both within and outside India. The reason for this free movement of
precious metals was perhaps the objective of the currency administrators of the Company
to keep their supply for coinage purposes unhindered.

B. LAWS ON COUNTERFEITING: ASSERTION OF SOVEREIGNTY OR SOUND MONETARY

POLICY?

The precious metal coins were always prone to some fraudulent practices.
Whether it was debasing the coin by reducing its fine metal contents by; or reducing its
weight by sweating; or punching holes in the coin and filling it with base metal; or issuing
a base metal coin with silver plating or gilding as the case may be, the practices varied. In
fact, the history of counterfeiting the official coin is as old as the history of coin itself, and
this phenomenon was common both in the East as well as in the Western world.
Counterfeit coins of the Bactrian, Saka and Kushan rulers have been reported/ while clay
moulds of punch-marked coins have been discovered in India. 4 Similarly, moulds for
counterfeiting die-struck Roman imperial coins have been found in many parts of the
Roman Empire. s

I Appendix C.2.
2 Appendix C.4.
3 Cunningham 1840 and 1840a; Kala 1947.
4 Prasad and Gupta 1956.
5 Grierson 1975: 158.
CHAPTERll 154

The Islamic rulers considered Sikka and the Khutba as the exclusive prerogative of
the sovereignty, and as such any incidence of counterfeiting the royal sikka was viewed as
a crime against the State.

The English Company in India had no such privilege. Officially they were the
Diwans of the Mughal emperor, whose name and titles their coins bore. The Company,
therefore, resorted to technological improvement in coin production as a measure to check
material injury to the coins and also against their counterfeiting. Thus, the milled coinage
was established at the Calcutta mint in 1790 as an attempt by the Company to secure its
coins against fraudulent practice of clipping the coins from the edges. Now the milling on
the edge made such an attempt easily detectable. With its high workmanship, it was also
seen as a bulwark to stop its counterfeiting. However, soon after the new gold muhrs were
released in the market the counterfeiters set out at work and one incident of detection of
counterfeit gold muhr came to light in July 1791. 1 While examining the accused, G.C.
Myers, the Preparer of Reports in the Revenue Department, suggested that in the absence
of any penal law to punish the manufacturers of counterfeit coins, the provisions of an Act
passed in 1572 [14 Eliz. I, c.3], and entitled 'An Act against the forging and
counterfeiting of foreign coin, being not current within this Realm' can be extended to
India. He also suggested that the Government should 'issue Public Notice that all
offenders against this act will be prosecuted with the utmost severity in the Supreme
Court of Judicature, and an adequate reward may be offered by the Government to any
person who shall give information against them, so that they may be apprehended, and
convicted according to law. ,2 The Advocate General of the Company, however, opined
differently. According to him no statute pertaining to coins extended 'to the offence of
counterfeiting the coin of this country current in Calcutta; tho' undoubtedly the uttering
such coin knowing it to be forged, and with an intent to defraud, might be prosecuted and
punished as a fraud by indictment. ,3

We, therefore, find that the earliest currency Regulation (Regulation XXXV of
1793) that formed part of the 'Cornwallis Code' in Bengal, incorporated some pointed

I NAI, Home Department, Public Branch, Proceedings, 20 July 1791, Nos. 9-11.
2 Ibid.: 29 July 1791, Nos. 16.
3T.R. Davies, Advocate General to the Governor-General in Council giving his opinion on the applicability
of statutes to the offences counterfeiting coin in India, letter dated 8 September 1791. NAI, Rome
Department, Public Branch, OC, 14 September, 1791, No.4.
CHAPTERll 155

directions as to how this menace was to be tackled.

a. Bengal:

Regulation XXXV of 1793 prescribed that the 'Persons charged with

counterfeiting, clipping, filing, defacing, or debasing, the Gold or Silver Coin, are to be
committed to the Criminal Courts, and punished according as the law may direct.' (Sec. XII)

The menace of counterfeiting of the coins was quite widespread. The town of
Calcutta, districts of Burdwan, 24 Parganahs, Kishennagar, Midnapore, Murshidabad and
Chandemagore, under the Bengal province and Birbhoom and Bhagalpur in the Bihar
province were reportedly the production centres for the counterfeit coins. l However, the
writ of the Supreme Court of Judicature, which was established in Calcutta in 1773 under
the provisions of the Regulating Act, did not prevail outside the town of Calcutta.
Therefore, for apprehending counterfeiters outside Calcutta something analogous to
'Backing Warrants' of England was contemplated. 2 However, even that possibility was
ruled by the Advocate General of the Company: 'a Proceedings analogous to ... which in
England is described by the expression of Backing Warrants [as they] may from the
situation of this country and the peculiar constitution of the Supreme Court be subject to
some Difficulties and Delays ... ,3 The problem in prosecuting the offenders was grave as
none of the then existing laws treated counterfeiting of coins as a 'capital offence.' In the
opinion of the Advocate General and the Standing Counsel of the Company, 'the persons
guilty may be prosecuted for a misdemeanor, but if convicted will not be subject to any
heavier punishment than fine and imprisonment, unless the circumstances appeanng
against them shall be sufficient to maintain an Indictment for a conspiracy. ,4

Like the Regulation XXXV of 1793, the Regulation XLV of 1803 too provided

1 NAI, Home Department, Public Branch, OC, 2 September, 1793, No.2 and 7 October 1793, No. 21; Datta
1968: 215-6, 219-20, 222-3, 290, and 292-3.
2Backing Warrants were issued by the Justices of Peace in England for apprehending persons residing
outside the jurisdiction of their county. Such warrants required endorsement (or 'backing') by the Justice of
Peace of that county where the accused resided.
3 W. Burroughs, Advocate General, to E. Hay, Secretary to the Government, Fort William, giving his
opinion as to the prosecution of coiners guilty of circulating base coins, letter dated 8 February 1793. NAI,
Home Department, Public Branch, OC 11 February, 1793, No. 10
4W. Jackson, Company's Attorney, to C. Shakespeare, Sub Secretary, Fort William, embodying the opinion
of the Advocate General and the Standing Counsel on the punishment to be awarded to the persons
concerned in counterfeiting gold muhrs, letter dated 17 August 1793. NAI, Home Department, Public
Branch,OC, 19 August, 1793, No.9.
CHAPTERm 156

that, instead of the then existing hand-minted COInS, the new 45 sun Sicca of the
Farrukhabad Mint should have milled edges to guard against 'counterfeiting, drilling,
filling, defacing or debasing' (Sec. VII). Any person charged with these acts was to be
committed to the Criminal Courts (Sec. XIV). But once again any specific legislation for
punishing the act of counterfeiting the coins was absent from the law books.

Finally, by Regulation XVII of 1817,1 certain penal provisions were introduced to

check counterfeiting of coins. Any person convicted of having forged or procured to be
forged any coin in imitation of the gold, silver or copper coins of the British Governments
in India, or of any coin usually received as money in the British possessions in India or
involved in 'clipping, filing, drilling, defacing, or debasing' these coins, was liable 'to
receive thirty stripes with a corah [whip], and to be imprisoned in banishment from the
district, for the period of seven years; or for the term of fourteen years' (Sec. IX, Second).
The same penalties were also extended for counterfeiting and forging credit instruments
such as bank notes, promissory notes and public securities.

b. Madras:

The counterfeiting of gold pagodas was not confined to India alone. In a letter
dated 24 September 1796, the Secret Committee of the Court of Directors informed the
Governor General that 'counterfeit Pagodas were making (sic) in this country, for the
purpose of being sent to India.,2 The Committee noted that 'considerable quantities
having been ordered for the purpose of taking them out as private ventures', and,
therefore, cautioned the Indian authorities to 'be upon its Guard' and take such steps,
'previous to the arrival of the Fleet from Europe, as may prevent these counterfeit
Pagodas becoming current.,3 The Indian Government was also directed to take adequate
measures for 'detecting and bringing to punishment the Persons who may attempt to
circulate them [counterfeit Pagodas] in India.,4

However, in the regulations for the administration of criminal justice in Madras

presidency, counterfeiting, debasing etc. of the legal coin was made a cognizable offence

I Appendix A.27.
2 NAI, Foreign Department, Secret Branch, Letters From Court, dated 24 September 1796.
3 Ibid.
4 Ibid.
CHAPTERID 157

as late as in 1827. By Regulation VI of 1827,1 provisions against the counterfeiting of

coin were made and even 'making, mending, buying, selling, concealing, or having
possession of implements for coining' was declared a punishable offence (Sec. IV. First).
An interesting part of this legislation is that under the scope of this offence, all 'gold,
silver, or copper coins of the British Government in India, or any of coin usually received
as money in the British possessions in India' were included. 2

c. Bombay:

To curb the menace of counterfeiting of coins, a legislation was issued by the

Bombay Government on 25 March 1812,3 under the authority of an Act of British
Parliament - An Act for the better Government of the Settlements of Fort St. George and
Bombay, 1807 (47 Geo. Ill, c.68). It prohibited the manufacturing of any coin current in
the island of Bombay, without the authority of Government, was prohibited. The act of
debasing the current coins was likewise brought under the definition of 'criminal
misdemeanour' and all violators were made liable for trial by the 'Court of Petty
Sessions' (Regulation I of 1812, Title Ninth: O/Coining, Article I).

The provisions of the said regulation were reiterated m a comprehensive

legislation for 'defining crimes and offences, and specifying the punishments to be
inflicted for the same' was passed by the Government of Bombay 1 January 1827. By
Regulation XIV of 18274 the persons convicted for illegal coining, counterfeiting or
debasing the coin were 'punishable with fine, ordinary imprisonment not exceeding eight
years, or flogging, or any of these combined (Sec. xvm and XIX). For petty crimes
concerning counterfeiting etc., where the amount was limited to ten rupees the fine was
limited to three times of the sum involved, 'commutable to ordinary imprisonment,
without labour, for a period to two days for each rupee of fine' (Sec. XIX, Second).

The laws on counterfeiting coins that were enacted by the governments of the
three presidencies could not eliminate this evil, which now spread to territories falling
outside the Company's domains. Thus, as late as in 1831 we notice the coiners in Oudh

1 Appendix B.5.
2 Ibid.: Sec. IV. First.
3 Appendix C.3.
4 Appendix C.5.
CHAPTER III 158

counterfeiting the coinage of the Company. 1 Many of these counterfeiters were patronised
by the local zamindars and other officials, who in tum received from them a hefty amount
as 'tax'. Apart from penalties imposed in the legislations mentioned above, the
government also tried to tackle the problem of counterfeiting both through technological
improvements of the coin device. As we shall see in Chapter IV, the change in the device
of the coin which the Company ultimately choose to install as the common currency in its
territories, was aimed both as an assertion of its sovereign status in India as well as an
ultimate check against its possible counterfeiting.
5. Establishment of a Uniform Currency throughout British India:

As early as in 1799, the Committee of Reforms set up by the Madras Government

had proposed a regulation for the adoption of Bengal coinage comprising of 19 sun Sicca
and 19 sun Muhr and their fractional denominations, as the general coinage throughout
British India. 2 Had this plan been accepted a uniform currency throughout British India
would have come into force with effect from 1 January 1802 - the date proposed by the
said Committee. 3

A general plan for establishing a uniform currency throughout the British India
was later laid down in a despatch from the Court of Directors dated 25 April 1806,
addressed to the presidencies of Bengal, Madras and Bombay. The Court referred to a
letter from the Earl of Liverpool to the King on the coins of the realm wherein he had
propounded a principle of monometallism for a sound monetary system. 4 The Earl noted,
'the money or coin which is to be the principal measure of property ought to be of one
metal only.,5 The Court, therefore, concluded that, 'In applying this argument to the
general use in India, there cannot be a doubt, in our opinion, that such coin must be of
silver.,6

The decided preference of the Earl of Liverpool in favour of monometallism and

the subsequent decision taken by the Court on that basis was nothing new for India. In his

I NAI, Foreign Department, Political Branch, DC, II February 1831, Nos. 72-73.
2 NAI, Financial Department, Mint Committee, Letters Received, Vol. 1811-13, 153-65.
3 Ibid.
4 Liverpool 1805.
S Despatch from the Court of Directors, to the Governments of Bengal, Madras and Bombay, dated 25 April
1806, British Parliamentary Papers, 1898, No. 127, Para 6.
6 Ibid.
CHAPTERID 159

Minute dated 29 September 1796, the then Governor-General of India, Sir John Shore had
dwelt at length on the question of currency reforms in Bengal and had proposed that coin
of only one metal should be legal tender and that metal should be silver. 1

The next question was to decide upon the weight for the proposed silver coin. The
Court noted that the standard weight of the Mughal rupee 'was uniformly one sicca, or 10
massa, being 179% troy grains or 179.5511 [11.63g].'2 The Court, though inclined to
adopt the weight of the former Mughal rupee for their proposed uniform coin for British
India, chose to 'fix the gross weight in whole numbers' and therefore, adopted '180 troy
grains as the nearest to the sicca weight. ,3

Having decided upon the metal and the weight of the proposed uniform coin for
India, the Court then considered the question of fineness of this coin. This question was
already deliberated upon, albeit in a different context, by the Committee of Privy Council
appointed in January 1803, 'to take into consideration the state of coins of this country
[England] and the present establishment and constitution of His Majesty's mint.' In its
Report, the said Committee had recommended the ratio of g pure metal and 12 alloy as

the 'best proportion.' The Court decided to adopt this proportion for the proposed coin of
India, as follows: 4

Troy grains 180

Deduct one-twelfth 15
And contain of fine silver, troy grains 165
Coming to the adoption of the foregoing principles of standard weight and
fineness in India, the position regarding the principal units of silver currencies circulating
in the three presidencies presented a very divergent picture. In Bengal alone there were
three different silver coins, viz. the 19 sun sicca, the Farrukhabad rupee and the Benares

(Machhlidar) rupee, which had different weights and pure metal contents. In Madras there
was Arcot rupee while Surat rupee was the principal currency in Bombay, which again
had weight and fineness that was different from each other. The overall picture emerged
as follows: (Table)

I Referred to in NAI, Public, Letters from Court, dated 25 May 1798, para 25.
2Despatch from the Court of Directors, to the Governments of Bengal, Madras and Bombay, dated 25 April
1806, British Parliamentary Papers, 1898, No. 127, Pata 6: Para 8.
3 Ibid.
4 Ibid.: Para 9.
CHAPTER ill 160

Table: Principal Units of Silver Currency in British India (c. 1806)

Issued by the Territory in Date and Silver Coins.
Government which it Autho~ity of Name Gross Pure
of circulated. Issue. Weight Contents
(in gms) (in gms)
Bengal :Bengal, Bihar and Regulation
Sicca (19 Sun)
Orissa XXXVof 1793
Rupee 11.64 11.40
Cuttack Regulation XII of
1805
Ceded and Regulation XL V Furrukhabad 11.21 10.77
Conquered of1803 (Lucknow 45 Sun
Provinces Sicca) Rupee
Benares Regulation ill of Benares 11.34 10.94
Provinces 1806 (Muchhlidar) Rupee
Madras Madras ArcotRupee 11.43 10.78
Presidency
Bombay Bombay Proclamation, Surat Rupee 11.60 10.67
Presidency 27 January 1801
Source: Despatch from the Court of Directors, to the Governments of Bengal, Madras and Bombay,
dated 25 April 1806, British Parliamentary Papers, 1898, No. 127, Para 6.; Ambedkar 1947: 17.

In order to reduce all these silver currencies to a common standard, except for the
19 sun sicca, only a slight adjustment in their fineness was required. (Table)

Table: Deviations of the Proposed Standard of Fineness from that of the

Principal Recognized Rupees

Silver Coins recognised as Standard More Less valuable

Principal Units and their Fineness valuable than the
Fineness of the than the proposed
proposed proposed Rupee
Silver Rupee
Name of the Its Pure Rupee (in By% (in By%
Coin Contents (in gms) gms) gms)
(in gms)
Sicca (19 Sun) 11.40 0.708 6.211 - -
Rupee
Farrukhabad 10.77 0.073 0.683 - -
(Lucknow 45 Sun
Sicca) Rupee
10.69
Benares 10.94 0.253 2.511 - -
(Machlidar)
Rupee
ArcotRupee 10.78 0.095 0.887 - -
Surat Rupee 10.67 - - 0.026 0.157
Source: Ambedkar 1947: 17.
Thus except for the Sicca and the Benares Rupee, all other principal units agreed
closely to the new standard of fineness, viz. 165 grains (1 O.69g) of pure silver. Even in the
CHAPTERll 161

case of Sicca Rupee, where the proportion of pure metal was much higher than the
proposed standard, the Court of Directors did not 'apprehend any objection on the part of
the people of Bengal' and remarked that 'no objection but what a very short experience of
the advantages of the general currency would remove. ,I

The Court also contemplated the fractional units ofthe principal coin as follows: 2
Half rupee weighing troy grains 90
Quarter rupee do. 45
Anna do. 1114
For small monetary transactions, the Court recommended a copper comage
consisting of the following three denominations: 3
6 pice or half anna
3 pice or quarter anna
1 pice or one-twelfth anna
The pice was to be the smallest currency unit. To guard against clandestine
melting of this specie, the Court directed that:
. .. the weight of this coin to be so adjusted, according to the price of
copper and expenses of coining, as to leave a profit on its issue; which
would have the good effect of preventing the melting of the coin, as its
value in currency would be something more than the value of the metal,
with all the export charges upon it. 4
While establishing the silver rupee and its fractional denominations as the
principal monetary unit and a copper coinage as a subordinate currency medium for small
transactions, the Court also considered the issue of gold coinage and noted that they were
'by no means desirous of checking the circulation of gold, but of establishing a gold coin
on a principle fitted for general use. ,5

The gold coin, according to the Court, was to be modelled on the same standard of
weight and fineness as that of the proposed silver rupee, 'viz. 180 troy grains, gross
weight, and 165 troy grains, fine gold.'6 It was to be called 'gold rupee' and was to have
half and quarter denominations of the proportionate weight and fineness. However, the
gold coinage was not to have any fixed value with regard to the silver coin 'but left to find

I Despatch from the Court of Directors, 25 April 1806, op.cit., para 10.
2 Ibid.: para 14.
3 Ibid.
4 Ibid.: para 15.
S Ibid.: para 16.
6 Ibid.
CHAPTER III 162

its own level according to ... the market value of the metals. ,1
As for the general device of the new coinage the Court recommended the
following pattern?
Obverse: Company's arms and motto, with an inscription "English East
India Company" as also the denomination and value of the coin,
with the year of coinage, viz., Sicca rupee, 18061 Half rupee or
Y2 rupee, 18061 Anna, 1806.
Reverse: Persian inscription, expressing the English one on the obverse,
with the value and denomination of the coin, together with the
date of coinage.
It was also mentioned that 'If the smaller gold and silver coins (perhaps below the
half rupee) do not present surface
,
sufficient for a clear impression, it would be proper to
substitute for the arms, the Company's crest, the inscriptions to remain alike in all.'3 No
device was prescribed for the copper coins.

No time frame was prescribed for the adoption of these measures in India, and the
three presidencies were left to carry these recommendations into effect at their discretion
as to the time and manner of doing it.

The task of reducing the existing units of currency to that proposed by the Court
was first accomplished in Madras. 4 By a Proclamation issued by the Government of Fort
St. George on 7 January 1818, a gold rupee and a silver rupee, each weighing 180 grains
troy and containing 165 grains of pure metal was established. Six years later, the Bombay
Government followed suit. By a Proclamation issued on 6 October 1824 the Surat rupee
of the Bombay Presidency was re-designated as 'Bombay Rupee' and was assimilated to
the Madras standard. The gold muhr of Bombay was likewise assimilated to the new
standard in 1825.

In Bengal Presidency, three principal currencies were established, viz.:

Denomination Area of Circulation

SiccaRupee Provinces of Bengal, Bihar and Orissa
Farrukhabad Rupee Upper Provinces, Lower Provinces,
Saugor and Nerbudda Territories
Benares Rupee Benares Province

I Ibid.: para 18.

2 Ibid.: para 37.
3 Ibid.
4 Ambedkar 1947: 16.
CHAPTER ill 163

As a first step to reduce the coin types, the Benares rupee was abolished by
Regulation XI of 1819, dated 31 December 1819, and the circulation of Farrukhabad
rupee was extended to the province of Benares. Secondly, the weight of the Farrukhabad
was altered as follows:

Table: Weight and Fineness of Farrukhabad Rupee

Established by Weight Fineness
Grs Gms Grs Gms
Reg. ill, 1806 173 11.21
165.215 10.70
Reg. XI, 1819 180.234 11.67
Thus, while there was no change in the contents of the pure metal, the Regulation
XI of 1819 brought the weight of the Farrukhabad rupee within the close proximity of the
standard prescribed by the Court of Directors. But even now two measures of value
prevailed in the Bengal Presidency in contrast with the Madras and Bombay presidencies,
where by now Arcot and the Bombay rupees respectively, had been established as the
measure of value.
Table: Sicca and the Farrukhabad Rupee, c. 1819
Coin Weight Fineness
Grs Gms Grs Gms
Sicca Rupee 191.916 12.44 175.923 11.40
Farrukhabad Rupee 180.234 11.67 165.215 10.70

A. STANDARDIZAnON AND REVENUE COLLECTION

The question of having only one silver coin for the Bengal Presidency was now
contemplated and the option of having either the Farrukhabad (or the Kaldar Sicca) or the
Sicca Rupee, both of which followed different weights, was debated in several
consecutive meetings of the Mint Committee. Holt Mackenzie, Secretary to the
Government and a Member of the Calcutta Mint Committee, recorded his observations in
his Minute dated 12 May 1825, where he writes: 'The question resolves itself into the
discussion, whether the Calcutta Sicca or the Furruckabad Rupee shall be our standard of
value.,J

The chief hindrance in adopting the Calcutta Sicca Rupee as the general standard
was the potential loss of revenue from the areas where the revenue assessment had been

I NAI, Financial Department, oe, 26 July 1826, No. 10.

CHAPTERll 164

done as per the Farrukhabad (or Arcot! Bombay) Rupee standard which was 116 (or 6.25

per cent) less in the intrinsic value as compared to the Calcutta Sicca Rupee. Mackenzie
estimated this loss to the tune ofRs.52 lakhs:

In the land revenue of the Western Provinces, and of Madras and Bombay,
a remission to the extent of 6lf4 per cent must be made amounting to about
Rupees 52,00,000. This would be a dead loss to the Government ... the
sacrifice of the revenue would be so great as to oppose an insuperable to
the adoption ofthis branch of alternative.!
On the other hand if the Farrukhabad Rupee was adopted as the standard measure
of value it would have clashed directly with the provisions of the Permanent Settlement of
Bengal, Behar and a portion of Orissa, where annual revenue of Rs. 2.85 crores had been
fixed in the Calcutta Sicca. As Mackenzie observes:
If we continue to demand the same nominal amount of Rupees, we shall
sustain an annual loss of about Rupees 17,80,000 by taking Farruckabad
instead of the Sicca Rupees. If we increase the nominal amount of the
Revenue in proportion to the reduced value of the coinage, we shall
ostensibly enhance a demand, which the nation is so solemnly pledged to
continue unaltered. We shall thus probably give occasion to much
complaint, and for a time at least may actually injure the zemindars. 2

In spite of the obvious difficulties Mackenzie was in favour of adopting the

Farrukhabad rupee as the uniform currency for the Bengal presidency. In the subsequent
years, while efforts were made to regularize the minting operations of different mints of
the Bengal Presidency and to facilitate the circulation of various sorts of old and new
currencies, no breakthrough was apparently made either in reducing the two principal
silver currencies of the Bengal Presidency to a single coin type, or to assimilate either of
the two to the principal units of the other Presidencies, namely Madras and Bombay.

The principal individual who spearheaded the task of assimilating the Farrukhabad
rupee to the Bombay and Arcot rupees and thus achieving uniformity in weight and
fineness of the principal silver rupees of the three presidencies was James Prinsep (1799-
1840), the son of John Prinsep, who during 1780-84, had supplied copper coinage to the
Bengal Government from his private mint at Falta. Thus, James had the genes of a coiner
in his blood. 3

1 Ibid.

2 Ibid.
3 See Garg 2001.
CHAPTERID 165

B. JAMES PRINSEP

James Prinsep had earlier served as the Assay Master and

the Secretary of the Mint Committee at Benaras (1820-29) and,
after the abolition of the Benaras Mint in 1829, as Deputy Assay
Master at Calcutta Mint (1830-1832). In January 1833, when the
then Assay Master Dr. H.H. Wilson left for England to take up his
new assignment as the Boden Professor of Sanskrit in the
University of Oxford, James Prinsep succeeded him as Assay
James Prinsep
Master of the Calcutta Mint and Secretary of the Mint Committee. 1799-1840

Immediately after assuming these responsibilities, James Prinsep got an

opportunity to review the question of weight and measures of India and formulate, inter
alia, a plan for establishing the uniformity in the weight and fineness of the principal
silver currencies of British India.

The occasion was provided by an error which Prinsep discovered in the table of
weights of various coins that was prepared by H.H. Wilson before his departure for
England. This table was printed by the order of Government and circulated for guidance
of the revenue officers of the Bengal Presidency. In his letter dated 11 April 1833
addressed to the Mint Committee of Calcutta, Prinsep pointed out that in this table the
new Farrukhabad rupee has been 'inserted as weighing 180 grains troy [11.66g.] instead
of 180.234 [grains = 11.67g] as provided by Reg. XI of 1819, Sec. 5.'1

Prinsep then described the existing twin weight and fineness standard for the same
specie, viz. the Farrukhabad rupee, coined at Farrukhabad, Calcutta and Benaras mints on
the one hand and at Saugor mint on the other.

Minting of Farrukhabad Rupee (1819-1833)

Mint Years Weight Fineness
Grs Gms Grs Gms
Farrukhabad 1819-1824*
Calcutta 1819-1833 180.234 11.67 165.215 10.70
Benares 1820-1829*
Saugor 1825#-1833 180 11.66 165 10.69
.
* Mint abohshed # New Mmt estabhshed MIntIng contInued un 1833

1 NAI, Financial Department, Mint Proceedings, 1 July 1833, No.2.

CHAPTERID 166

While the Farrukhabad, Calcutta and Benaras mints followed the weight and
fineness standard prescribed by Regulation XI of 1819, the Farrukhabad rupee coined at
Saugor, followed right from its inception, the weight and fineness standard of the Arcot
rupee established in 1818, and to which standard Bombay rupee was assimilated in 1829.
Thus by 1829, uniformity of weight and fineness of principal silver currency circulating in
a large part of British India was virtually established.

However, the existence of two differing weight and fineness standards of the same
specie caused both loss and confusion, as noted by James Prinsep in his letter to the Mint
Committee, referred to above. He records, ' ... it is a waste of silver to coin heavier money
to circulate at par with them [lighter coins]' and adds that 'confusion at the Collector's
office will prevail in ascertaining when the current coin is to be deemed of short weight
what are still issuable at one Treasury will have caused to be so at another and vice versa
as long as the two weights remain. ' I

Referring to the 'expressed desire' of the Court of Directors 'to equalize the coin
of the whole of their Indian possessions, both in weight and standard', Prinsep advocated
the adoption of 180 grains (l1.66g) as the standard weight for the Farrukhabad rupees
minted at Calcutta in a hope that 'the adoption of the smaller weight will tend to keep the
present currency afloat for a longer period. ,2

As the weight of 180 grains was :~ th of 192 grains (12.44g) - the weight of

Calcutta Sicca,3 comprising 16 annas, the problem of conversion was also expected to be
simplified, 'since the commonest understanding could comprehend the calculation of one
anna per rupee which would be leviable upon all fixed settlements in excess of their
jumma [revenue] ifpaid in new Farrukhabad Rupee.,4

Prinsep hoped that if this arrangement was adopted, 'the abolition of the [Calcutta]
Sikka Rupee (or the suspension of any further coinage of it) might be at once effected.,5
Thus Prinsep's plan was two fold: First, to reduce two principal currencies of the Bengal

I Ibid.
2 Ibid.
3 Its weight was actually 191.916 grains or 12.43g. as fixed by Regulation XIV of 1818.
4 NAI, Financial Department, Proceedings, 1 July 1833, No.2.
5 Ibid.
CHAPTER III 167

Presidency to one and, secondly to assimilate it to the weight and fineness standard of
Arcot and Bombay rupees, and thereby complete the process of uniformity of currency
that was started in Madras in 1818, in accordance with the roadmap laid down in Court of
Directors' despatch of 1806.

Associated with the reform of the coin was the problem of weight that was in
general usage. During this time the weights throughout the country were expressed in
terms of the principal coin and thus ser and man were simply the multiples of the
principal coin current in that area:
Thus, throughout the Marathi states, the ser is referred to the Puna or
Ankusi rupee: in Gujarat, to the Baroch rupee: in Ajmir to Salimsahi; in
Bengal, to the old Murshidabad rupee .... 1
In Bengal two systems of weights were prevalent. First was the Factory weight,
based on the English avoirdupois pound system, while the second, called the Bazaar or
the Sikka weight, was based on the old Murshidabad rupee weighing 176.666 grains
(11.64g). In those parts of the Bengal province where Farrukhabad rupee was in
circulation, the ser and man were expressed as the multiples of that coin. Prinsep was
aware that any change in the weight system was not an easy task. He writes:
However desirable it may be, in theory, to reduce the system of weights
throughout the vast continent of India to order and uniformity; in practice,
it is well known that insuperable difficulties oppose the execution of such
. 2
a proJect.
To start with, such a change required a corresponding adjustment in all the
weights in use at the Mint, the Custom House, the Treasury, the banks, Collector's offices,
and a number of other Government offices.

Undeterred by the apparent difficulties, Prinsep, by his mathematical calculations

and statistical analysis, successfully demonstrated that only by a slight modification in the
Sicca weight, it could be adopted as the standard unit for the weights as well as for the
new rupee coms.

When the weight of the Calcutta Sicca rupee was increased from 179.666 grains
(11.64g) to 191.916 grains (12.43g) by Regulation XN of 1818, corresponding alteration
on weights of general use was not carried out.

1 Prinsep 1858: 109.

2 Ibid.
CHAPTER III 168

. .. it was not deemed expedient to extend the alteration to the weight

founded upon the old coin and consequently a Sikka weight was retained
as the unit of weight contradistinguished from the Sikka Rupee of the new
currency.!
Prinsep found a great opportunity in this anomaly as the old Sicca weight (179.666
grains) was 'but a trifling fraction of a grain lighter than the proposed Rupee of 180
grains.,2 This difference of 0.333 grains (21mg) or nearly 600th part was too negligible
and was, therefore, readily adaptable 'without the smallest difficulty or inconveniences in
commercial or revenue transactions.' 3

Having had studied the coin and currency systems of India through the ages,
Prinsep was also aware of the fact that the traditional Indian weight of tola was in fact the
weight of the silver rupee, 80 of which went for a ser. The tola, in turn, matched closely
with the weight of the Farrukhabad rupee (180 grains) that was proposed by Prinsep as the
sole silver currency unit for the Bengal Presidency. On the other hand the multiples of
tola also synchronized with the English troy weights, viz.: 4
8 rattis = 1 masha = 15 grains troy = 0.97g.
12 mashas = 1 tola = 180 grains troy = 11.66g.
80 tolas = 1 ser = 2 Y2 lbs. troy = 933.1g.
40 sers = 1 man = 100 lbs. troy or bazaar maund = 37.32 kg.
Prinsep, therefore wanted the weights to be fabricated on this system, for the
distribution of general use. He also preferred the use of 'the universal Hindi word tola' in
contrast with 'Sikka weight' which he found objectionable - '... it is an English
compound and cannot be translated into the native language. ,5

The plan proposed by Prinsep was forwarded to the Governor-General on 12 April

1833.6 In his reply dated 1 July 1833, G.A. Bushby, Officiating Secretary to the
Government in the Financial Department, informed the Mint Committee of Calcutta about
the decisions of the Governor-General in this regard. 7 First of all the proposed alteration

IPrinsep to the Mint Committee, dated 11 April 1833. NAI, Financial Department, Proceedings, 1 July
1833, No.2.
2 Ibid.
3 Ibid.
4 Ibid.
S Ibid.

6 Mint Committee to Secretary to Government in General Department. NAI, Financial Department,

Proceedings, 1 July 1833, No.1.
7 NAI, Financial Department, Mint Committee Proceedings, July 1833, No. 15.
CHAPTERID 169

in the weight of Farrukhabad Rupees to be coined at the Calcutta mint from 180.234 to
180 grains as well as that of the Calcutta Sicca rupees from 191.916 to 192 grains was
approved. Similarly, the assimilation of the Sicca weight, 'contradistinguished to the
Sicca Rupee', with the weight of the Farrukhabad rupee (180 grains) as well as the
substitution of the term tola for 'Sicca weight' was also approved. However, regarding the
enforcement of 'the general use of the uniform weights and measures' in all public
transaction~, the Governor-General observed that the same 'could not be effected without
prescribing penalties for employing others than those of the Regulation standard.' As an
alternative, therefore, he suggested that 'where application is made to the Mint and Assay
Offices for the verification or manufacture of Sicca weights, that a standard of 180 grains
ought to be adopted.' 1

Subsequently, on l3 July 1833, Regulation VII of 1833 2 was passed which

converted Prinsep's proposals into a legislation. By this Regulation the weight of the
Farrukhabad rupee - one of the principal coins of the northern India, was fixed at 180
grains troy, corresponding to the traditional Indian weight for the silver rupee, i.e. one tola
of 12 mashas. This coin was then adopted as the unit of a general system of weights for
Government transactions throughout India.

At the same time, by this alteration in the weight, the Farrukhabad rupee was also
assimilated to the weights of the Bombay and the Arcot rupee - the principal coins of the
Bombay and the Madras Presidency respectively. Now all the three Presidencies of the
East India Company had their principal coins of the Uniform Weight. A Uniform Coinage
was a/ait accompli.
Table: Uniformity of Silver Rupee at the end of 1833
SllverRupee Fineness
Presidency Denomination Weight Grs Gms %
Grs Gms
SiccaRupee 192 12.44 176 11.40 91.63
Bengal
Furrukhabad Rupee 180 11.66 165 10.69 91.68
Bombay Bombay Rupee 180 11.66 165 10.69 91.68
Madras ArcotRupee 180 11.66 165 10.69 91.68
Source: Adapted from Ambedkar 1947: 17.

I Ibid.
2 Appendix A.39.
CHAPTERITI 170

Prinsep at the same time was also convinced that such a wide ranging change
touching almost every aspect of the public life cannot be affected by force. Thus, we find
that the said Regulation expressly avoided any penal provision for default. The decision of
the Government as well as a copy of the Regulation vn of 1833 was forwarded to the
Court of Directors by Governor-General's letter dated 9 September 1833. 1

The Uniformity of Currency thus achieved, the next target in the plan for currency
reforms was the introduction of a Universal Coinage throughout the Indian possessions of
the East India Company.2

Summing up

Based on the recommendations made by the Mint Committee of the Bengal

presidency, the Bengal government had initiated a systematic process of reforming the
colonial currency. The regulations passed by the Governor General in Council in 1793
established the Company's silver coin - the Sicca Ruppee - as the principal currency of
the Bengal presidency. As new territories were added into the Bengal presidency new
currencies were standardized for these regions - the Farrukhabad rupee for the Ceded and
Conquered Provinces and the Benares rupee for the Benares province. Initially the
currency system was modelled on bimetallism but in 1806 the Court of Directors decided
in favour of monometallism, and consequently silver rupee was not only standardized but
also firmly established in regions like those under the Madras presidency, which
traditionally had predominantly a gold based currency system. By 1824 the principal
rupees of the Madras and the Bombay presidencies - the Arcot rupee and the Bombay
rupee - had been assimilated in weight and fineness to establish a uniform currency
within a large part 6fCompany's territorial possessions in India. In 1825 the same weight
and fineness was adopted for the Farrukhabad rupee coined at the newly established mint
at Saugor, which catered to the monetary requirements of the Saugor and Nerbudda
territories. Finally in 1833, the Farrukhabad rupee coined in the Company's mints at
Farrukhabad, Calcutta and Benares, which was the principal currency of the northern
India, was also assimilated with the Arcot and the Bombay rupee. Thus a uniform

1 Bengal Letter to Court, No 16 of 1833. NAI, Financial Department, Letters to Court, Vol. 1833, 125-38.
2 The tenn 'universal coinage' used here and subsequently, has been discounted from the literal meaning of
the word denoting 'beyond the frontiers of one country and pertaining to the universe. ' The applied meaning
of this tenn in this work is restricted to the territorial possessions of the English East India Company in
India.
CHAPTERllI 171

currency was established in the entire territories of the East India Company, excepting the
Bengal province, where the Sicca rupee of slightly higher weight but of lesser fineness
was still retained.

The process of currency refonns that was carried out by the East India Company
between the years 1793 and 1833 addressed the liquidity crisis faced by the Company in
its multifarious activities ranging from revenue collection to military campaigns. With the
establishment of a unifonn standard (silver monometallism) and assimilation of weight
and fineness of the principal currencies of different regions, the velocity of money was
greatly enhanced which, in turn, helped the Company to meet the currency crunch in one
region by mobilizing surplus money from other regions. These refonns also struck down
the menace of discount (batta) charged by the money changers, which resulted in
streamlining the rates of exchange between different species of rupees circulating in a
particular region.

The currency refonns also addressed the need for technological up gradation of
minting process in India. Screw presses were introduced for the first time in Indian mints,
which resulted in manifold increase in the output of these mints. This quantum leap in
mint production greatly facilitated the replacement of various sorts of currencies in the
region by the Company's coins. It also helped in meeting the demands of an expanding
area of money use in the society.

Finally, by exempting the import and export of bullion from duty, the Company
encouraged its free flow into its mints. The incidence of counterfeiting the established
coin was curbed to a large extent by incorporating provisions for strict penalties for the
violators, in the legislations dealing with the administration of criminal justice in the
British India.

Thus, within a short span of four decades, the East India Company was able to
integrate the currencies of its dominions and secure the currency administration finnly
into its hands. This provided to the Company a powerful tool which not only helped her
transfonn from traders to full-fledged administrators - a role bestowed upon it by virtue
of the Charter Act of 1833 - but also in establishing an imperial currency to serve as the
facilitator of the imperial finances.