India 1835 to 1840 – William IV – Mohur

As with the double mohur, the single mohur was issued into circulation from 1st January 1836. Some difficulty was experienced in getting merchants to take up the option to bring gold to the mint for coinage into the new coins [1], [2] and a major review was undertaken in 1837 [3].

See article by Maunish Shah concerning some of the proofs.

 



[1] Bengal Consultations. IOR P/162/88, February 1837, No 22.

Letter from John Curnin (Deputy Assay Master) to James Prinsep (Assay Master), dated 16th February 1837.

Having had occasion since my return from Europe to look into the work done in this mint, I have observed that since the regulations relative to the new coinage have been in force, scarcely any gold has been brought into it for coinage and, upon enquiry, I find two reasons assigned as the cause of the cessation

1.     The native merchants object to their gold being converted into the new gold mohurs owing to their having, in one instance, been rejected as payment by an officer of the Government

2.     The objection from the first cause is strengthened by their desire to have gold coined into gold mohurs of the old standard and, as their desire was acceded to on a former occasion, they hope it may be acceded to again

He then goes on to propose various ways in which the problem could be addressed, including issuing coins with a greater gold content, and reducing the charge imposed for the work to 1%.

[2] Bengal Consultations. IOR P/162/88 February 1837, No 23

Note from Prinsep dated 26th February 1827 (error for 1837)

The circumstances of bullion (gold) being no longer brought to the mint for coinage has been already made known to Government, as well as the prejudice (or real preference) for coin of the purer standard, so much so that we have been authorized to sell all the gold in the mint uncoined at the premium which it will thus command.

It is still open for reconsideration whether the principle of the new act as to the standard of gold ought to be maintained at a sacrifice of all the coinage duty, which was heretofore annually realized at the rate of 1 ½  lakhs in 4 years.

The objections are, that the Bombay and Madras mohurs are in plentiful circulation in South India, where no such prejudice exists, and that if we now coin a pure gold mohur having an equal intrinsic value, while from the local prejudice its market value will be enhanced nearly one rupee, we shall be augmenting the difficulties of a host of variable coins Viz:

                                                   Co’s Rp

1 The old sicca mohur worth say       18

2 The new sicca mohur                      17

3 The Bombay & Madras                   15

4 The Company’s new Mohur 15

5 The same purified, nominal value say             16

 

However it must be confessed that the gold money forms no part of the circulation and the perplexity would be confined to the bullion merchants coffers and counters.

I myself am in favour of the pure coin on the score of its uniform colour and ready detection. This seems to ensure it a reception in other countries, and the same reason may account for the universal admission of the Venetian sequin in oriental countries, Its purity is readily recognised and cannot be imitated so as to preserve at once the same colour, weight and flexibility. Most of the native states coin their gold of the same purity as an old gold mohur, as Lucknow, Jypore, Bhopal. Nipal is an exception, it’s gold being standard 1/12th, but the specimens were probably coined from our own pieces melted up.

Very few of the new lion mohurs have been issued and these have been for the most part, I fancy, paid back to the treasury. Were it resolved therefore to give way to the popular feeling in favour of the purer metal, these might easily be withdrawn, and the issue of the lion mohur be confined to the latter species, preserving the intrinsic proportion to silver of 1-15th as before, and the device of the coin would suffice to distinguish it from all of the old values. The same dies would answer and a considerable quantity of the precious metal would undoubtedly be brought to our presses…

[3] Bengal Consultations. IOR P/162/88, December 1837 No 23

Resolution passed at the Consultation of 29th November 1837

The President in Council having given to the above papers and especially to the minute recorded by the Governor General before his departure, his mature consideration records the following observation and orders

It appears that the standard of 1/12th alloy for gold as well as silver was ordered by the Honble Court in 1806 and the change to this standard was made by Regulation in Bengal and Madras in the year 1818, having previously been adopted at Bombay. At Bengal it led to a diminution of the seignorage realized by Government upon private gold and notwithstanding the regulation, the coining of gold mohurs of the old ¾ per cent standard was recommenced on account of Government in 1825 and on account of individuals in 1829, to the manifest profit of the Government, first through the increased price at which its own gold was sold when so coined and second through the increased seignorage obtained by coining private gold into mohurs of the purer standard which in the markets of Bengal have ever maintained relatively to less pure gold coin a premium unaccountably high.

At Madras it appears that the coinage of gold coin of the standard of 1/12th alloy continued until the mint of that Presidency was abolished and the gold coin so issued is still partially in circulation, but there is little or no gold of purer standard with which it might be compared to show whether relatively to such it bears a discount. By Act XVII, 1835, the mints of India were prohibited from coining other gold coin than of the standard of 1/12th alloy and of such device as the Governor General of India in Council in the executive department might prescribe. There has since been an inconsiderable coinage of gold of the lion device sanctioned by orders of this department dated 25th November 1835, but never published in the Gazette in consequence of the order having been issued to meet a particular case, and when the devices for one description of gold coin only had been prepared. Of this device there have been struck at Calcutta, Double Pieces 1,174 and Single Fifteen Rupee pieces 9,133 of the total value of only Company’s Rupees 172,215. Neither at Bombay nor at Madras has there been any coin struck of this device nor any gold coin at all of the 1/12th or of any other standard since Act No XVII of 1835 passed.

In this state of things the restoration of the pure standard for the gold coin of India being recommended by the Mint Committee at Calcutta the question has been referred both at Madras and Bombay and the replies received from those Presidencies are recorded above. The information bearing on the points at issue is collected in the Secretary’s note and the arguments for and against the change are discussed by him with a leaning towards the measure which as a member of the Mint Committee he joined in recommending.

The Governor General in his minute dated 24th September 1st is of opinion that sufficient reason is shown for referring the question of the standard to the Honorable Court of Directors with whom the measure of coining gold of the same standard with the gold of England Viz 1/12 alloy appears to have originated. In the propriety of this reference the President in Council concurs, but the views of the different members are stated in minutes separately recorded, and in making the reference it will be necessary to draw the attention of the Honorable Court of Directors to the opinions thus separately expressed on this point.

The President in Council does not think that it will be either necessary or proper to suspend the coinage of gold of the standard prescribed by Act XVII of 1835 pending the reference thus determined upon. On the contrary, gold coin of the device and standard already ordered may continue to be struck for individuals as for Government, and the determination that has been come to in respect of the seignorage duty to be levied on private gold as about to be stated will afford more satisfactory means of judging of the extent of the prejudice which exists against the baser coin and whether ir is permanent or only temporary.

On the second point of those brought forward in the Secreary’s note, Viz the proper seignorage to be levied on gold, the property of individuals when brought to the Government mints to be coined, The President in Council concurs with the Governor General in opinion that considering that the expense of coining gold is very little greater than that of coining silver, and therefore that if the hundred gold pieces cost only one rupee on the average in the manufacture, the duty on that metal, in order to be placed on a par with silver, which is two percent including the same expense of coining, ought to be lowered to 1 1/15 per cent net in addition to the expense of reefing at such charge proportional to the baseness of the metal tendered as may be fixed by the Governor of Bengal at the recommendation of the Mint Committee. The reduction of seignorage is within the competence of the President in Council in his executive capacity and there is no reason why it should not be carried immediately into effect.

Ordered therefore  that from the 1st proximo the seignorage levied on standard gold or only gold purer than standard be fixed at 1 per cent, the fraction being remitted, and in addition to this seignorage if the gold be inferior to standard, that a charge for refining equal to that actually incurred in reducing the gold to standard as may be regulated by the Mint Committee, be demanded on the gold bullion of merchants brought hereafter for recoinage.

On the third point brought forward, Viz whether the condition of the currency of the Bengal Provinces is such as to warrant the withdrawal of the privilege of legal tender from the sicca rupee on the 1st January next as fixed at present by Act XIII of 1836. The facts laid before the Government by the Secretary have satisfied the President in Council that there is no reason whatever for postponing the period when that act shall take effect. No measures are necessary for this purpose, the secretary having already been directed to cause the notice of the withdrawal of the privilege of legal tender from the sicca rupees to be repeated in the Gazette of the Presidency, in English, Persian and Bengallee, and to be generally circulated in the interior…

Bengal Consultations. IOR P/162/90, January 1839, Nos 10 & 11

Letter from the Mint Master (Forbes) to the Mint Committee, dated 31st December 1838

I have the honor to submit for the information of the Committee  the accompanying copy of a letter addressed by me to the sub-treasurer, with his reply, and to request the instructions of the Committee as to whether or not new standard gold mohurs are to be coined.

Letter from the Mint Master to the sub-treasurer (Oakes), dated 29th December 1838

I have the honor to advise you that a considerable quantity of gold is now being brought into the mint for coinage into Company’s gold mohurs, and with reference to this circumstance I have to request the favour of your informing me whether you have coin of this description in the General Treasury to meet the demand, and to what extent.

Letter from the sub-treasurer to the Mint Master, dated 31st December 1838

In reply to your letter of the 29th instant just received, I beg to state that there no Compnay’s gold mohurs, at present, in the General Treasury.

Letter from the Mint Committee to the Mint Master, dated 10th January 1839.

I am directed by the Mint Committee to acknowledge the receipt of your letter of the 31st ultimo with its enclosures, soliciting instructions “as to whether or not new standard gold mohurs are to be coined”, and in reply to state that the Committee leave it entirely to your discretion to coin mohurs of the new standard whenever the importers of bullion deliver gold into the mint for coinage.

With the view of preventing the inconvenience to the officers of the treasury and the public, which a demand to be paid in mohurs for gold delivered into the mint would occasion without a supply on hand to meet it, the Committee think you will be warranted in refusing to receive gold repayable in coin of less weight than 500 tolas.