Act No. 22 of 1899
Act No. XXII (Act No. 22) of 1899 (Repealed)
Passed by the Governor General of India in Council.
(Received the assent of the Governor General on the 15th September, 1899.)
An Act further to amend the Indian Coinage Act, 1870 and the Indian Paper Currency Act, 1882.
Preamble
WHEREAS it is expedient further to amend the Indian Coinage Act, 1870 and the Indian Paper Currency Act, 1882; It is hereby enacted as follows:-
Short title and commencement
Section 1. (1) This Act may be called the Indian Coinage and Paper Currency Act, 1899; and
(2) It shall come into force at once.
Substitution of new section for section 12, Act XXIII, 1870; Gold coins a legal tender
Section 2. For section 12 of the Indian Coinage Act, 1870, the following section shall be substituted, namely:-
"12. Gold coins, whether coined at Her Majesty's Royal Mint in England, or at any Mint established in pursuance of a Proclamation of Her Majesty as a branch of Her Majesty's Royal Mint, shall be a legal tender in payment or on account at the rate of fifteen rupees for one sovereign:-
"Provided that such coins have not been called in by any Proclamation made in pursuance of the Coinage Act, 1870, or have not lost weight so as to be of less weight than that for the time being prescribed for like coins by or under the said Statute as the least current weight."
Addition to section 11 clause (a), Act XX, 1882
Section 3. To section 11, clause (a), of the Indian Paper Currency Act, 1882, the following words and figures shall be added, namely:
"or in gold coin which is legal tender under the Indian Coinage Act, 1870."
Explanatory Note
Overview
The Indian Coinage and Paper Currency Act, 1899 (Act No. 22 of 1899) was enacted by the Governor General of India in Council and received assent on 15th September 1899. This Act amended key provisions of two important statutes: the Indian Coinage Act, 1870 and the Indian Paper Currency Act, 1882. It aimed to update and harmonize the treatment of gold coins in India's monetary system.
Purpose of the Act
The main purpose of this Act was to formally recognize certain gold coins as legal tender and to permit their use in exchange for Government paper currency. It clarified the legal status of sovereign gold coins minted in England or its branches and integrated them into the existing paper currency framework under Indian law.
Key Provisions
The Act substituted a new Section 12 in the Indian Coinage Act, 1870, declaring that gold sovereigns coined at the Royal Mint or its branches would be legal tender in India at the rate of fifteen rupees per sovereign. This was subject to conditions regarding their weight and legal status under proclamations issued under the Coinage Act.
Additionally, the Act amended Section 11(a) of the Indian Paper Currency Act, 1882 by allowing legal tender gold coins to be used in exchange for Government promissory notes, alongside silver coins and bullion. This change expanded the basis for redeeming paper currency.
Significance
This Act marked an important step in incorporating gold into India's official monetary system at a time when global economies were increasingly influenced by the gold standard. By explicitly recognizing gold sovereigns as legal tender and linking them to paper currency exchange, the Act helped align India's financial regulations with international practices and improved public confidence in the currency system.
Conclusion
The Indian Coinage and Paper Currency Act, 1899 served as a targeted amendment to enhance the flexibility and credibility of India’s monetary framework. Though eventually repealed, it played a valuable role in integrating gold coinage into official legal tender and in modernizing the interaction between coin and paper currency under colonial Indian law.