_, about 40% of the holdings six months earlier), and the demand for council bills in

In the meantime an attempt was made, described in §4, to force sovereigns into circulation.

. , five millions–there would be a great danger that the whole mass of Exchequer Bills would be at a discount, and would be paid into the revenue. [36] We know also how much of this addition is in the form of sovereigns, and how much in the form of gold bars. While, therefore, it is to a certain extent within the power of Government (though not at present according to their usual practice) to urge a certain number of rupees into circulation _more rapidly_ than is necessary, they cannot _permanently_ increase the circulation without depreciating its gold value, that is, they cannot permanently increase the circulation beyond what it would otherwise be and at the same time maintain the rupee at 1s. The position was aggravated by the large realised surplus, much of which was to be devoted to expenditure only in the _next_ financial year, and which in the meantime was swelling the Government Balances in any case beyond their usual dimensions.

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