Currency Amendment Act, 1870

Act No. XV (Act No. 15) of 1870 (Repealed)

Repealed by Act No. III (Act No. 3) of 1871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 5th April 1870).

An Act for the further amendment of Act No. XIX of 1861.

Preamble

FOR the purpose of further amending Act No. XIX of 1861 (to provide for a Government Paper Currency); It is hereby enacted as follows:-

Amendment of Act No. XIX of 1861, section 4

Section 1. In section four of the said Act, the words 'who may be the Master of the Mint at Calcutta' and the words 'who may be the Master of the Mint at Madras and the Master of the Mint at Bombay' shall be repealed.

Amendment of section 10

Section 2. Section ten of the said Act shall be read as if, for the words four crores,' the words 'six crores' were substituted.

Explanatory Note

Overview

The Currency Amendment Act, 1870 (Act No. 15 of 1870) was enacted by the Governor General of India in Council and received assent on 5th April 1870. It served as a short amendment to the earlier Indian Paper Currency Act, 1861 (Act No. XIX of 1861), aiming to make specific textual and financial changes to the functioning of the paper currency system. Although the Act was later repealed by the more comprehensive Indian Paper Currency Act, 1871, it played a transitional role in the evolution of India’s monetary laws.

Purpose of the Act

The Act was introduced to address and update two specific elements of the 1861 legislation: (1) the administrative designations of currency officials, and (2) the financial limit of note circulation. These amendments were meant to reflect the changing administrative structure and the growing currency demands of British India.

Key Provisions

The Act amended Section 4 of the 1861 Act by repealing the references to the Masters of the Mints at Calcutta, Madras, and Bombay, thereby removing a requirement that may have restricted the appointment or role of certain currency officials. This helped streamline the designation of officers under the currency system.

Additionally, the Act amended Section 10 of the original Act by increasing the upper limit of paper currency in circulation from four crores to six crores of rupees. This change recognized the increased monetary needs of the colonial economy and allowed for a broader issuance of government-backed promissory notes.

Significance

Although brief, the Currency Amendment Act, 1870 was important in allowing greater flexibility in both administrative appointments and monetary supply. By raising the circulation limit and simplifying officer designations, it facilitated smoother implementation of the Government's paper currency policy at a time of expanding economic activity in India. It also reflected the evolving administrative needs before the system was more comprehensively revised in 1871.

Conclusion

The Currency Amendment Act, 1870 was a focused legislative update to the Indian Paper Currency Act of 1861, aimed at refining the structure and scale of the paper currency system. Though later repealed by the more comprehensive 1871 Act, its provisions served as necessary interim adjustments to support the growing complexity of British India’s financial administration.