Currency Amendment Act, 1867

Act No. XXX (Act No. 30) of 1867 (Repealed)

Repealed by Act No. III (Act No. 3) of 1871

Passed by the Governor General of India in Council.

(Received the assent of the Governor-General on the 19th June 1867).

An Act to amend Act No. XIX (Act No, 19) of 1861 (to provide for a Government Paper Currency).

Preamble

WHEREAS under section 8 of Act No. 19 of 1861 (to provide for a Government Paper Currency), the promissory notes of the Government of India issued under that Act are payable only at the office or offices, or agencies of issue of the city or town from which they are severally issued, and at the Presidency town of the Presidency within which such city or town is situated: And whereas it is expedient to empower the Governor General of India in Council to declare that, for the purposes of the said Act, any city or town, other than a Presidency town, shall be deemed to be situated within such Presidency as he shall from time to time declare by notification in the Gazette of India; It is hereby enacted as follows:-

Power to transfer for purposes for Currency Act any town from one Presidency to another

Section 1. It shall be lawful for the Governor General of India in Council from time to time to declare, by notification in the Gazette of India, that any city or town (other than a Presidency town) from which promissory notes of the Government of India are or shall be issued under the said Act, shall, for the purposes of such Act, be deemed to be situated within such Presidency as shall be specified in that behalf in that said notification; and thereupon such city or town shall, for the purposes of the same Act, be deemed to be situate within the Presidency so specified.

This Act to be read with Act XIX of 1861

Section 2. This Act shall be read with and taken as part of the said Act No. XIX of 1861.

Explanatory Note

Overview

The Currency Amendment Act, 1867 (Act No. XXX of 1867), was enacted to amend certain provisions of the Indian Paper Currency Act, 1861 (Act No. XIX of 1861). It received the assent of the Governor-General on 19th June 1867 and was later repealed by Act No. III of 1871. This short Act introduced an important clarification relating to the jurisdictional treatment of towns issuing Government promissory notes.

Purpose of the Act

The main purpose of the Act was to allow administrative flexibility in defining the "Presidency" to which a non-Presidency town issuing Government currency belonged. Under the original 1861 Act, promissory notes were only payable in the town of issue and the corresponding Presidency town. This amendment enabled the Governor-General in Council to reassign such towns to different Presidencies for operational convenience.

Key Provisions

Transfer of Towns Between Presidencies: Section 1 empowered the Governor-General in Council to issue notifications in the Gazette of India declaring that any non-Presidency city or town issuing Government currency shall be deemed to fall under a different Presidency than originally designated.

Integration with Act XIX of 1861: Section 2 clarified that this Act was to be read in conjunction with the Paper Currency Act of 1861 and form an integral part of it.

Significance

This amendment enhanced the administrative efficiency of the colonial currency system by permitting the Government to realign jurisdictions as needed. It was particularly relevant in a context where the growth of trade and expansion of branch banking required operational and logistical adaptability. The Act contributed to a more cohesive and flexible management of the paper currency network in British India.

Conclusion

Though brief, the Currency Amendment Act of 1867 addressed a practical need for jurisdictional flexibility under the paper currency regime. By allowing the reassignment of towns to different Presidencies for the purpose of currency management, the Act supported the broader goal of a streamlined and adaptable financial administration during the early years of Government-issued paper money in India.