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This had severe consequences in the nineteenth century when the strongest economies in the world were on the gold standard. The discovery of large quantities of silver in the United States and several European colonies resulted in a decline in the value of silver relative to gold, devaluing India’s standard currency. This event was known as “the fall of the rupee. The silver rupee continued as the currency of India through the British Raj and beyond.
In , British India adopted a mono-metallic silver standard based on the rupee; this decision was influenced by a letter written by Lord Liverpool in extolling the virtues of mono-metallism. Chart showing exchange rate of Indian silver rupee coin blue and the actual value of its silver content red , against British pence. In an attempt to make the British gold sovereign the “imperial coin”, the treasuries in Bombay and Calcutta were instructed to receive gold sovereigns ; however, these gold sovereigns never left the vaults.
As the British government gave up hope of replacing the rupee in India with the pound sterling, it realised for the same reason it could not replace the silver dollar in the Straits Settlements with the Indian rupee as the British East India Company had desired. Since the silver crisis of , a number of nations adopted the gold standard; however, India remained on the silver standard until it was replaced by a basket of commodities and currencies in the late 20th century.
Thus a channel for the outflow of silver was stopped, in , by the India Council in London. But during the First World War, the value of the pound fell alarmingly due to rising war expenses. At the conclusion of the war, the value of the pound was only a fraction of what it used to be prior to the commencement of the war. It remained low until , when the then Chancellor of the Exchequer finance minister of the United Kingdom, Winston Churchill , restored it to pre-War levels.
As a result, the price of gold fell rapidly.
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Many migrants who move from India suffer from culture shock and struggle to socialise and embed into the population. A recent study has shown that more than , people settled in Sydney, were born in India. The following suburbs have housing that is both reasonably priced and provides easy access to public transport:
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Melbourne, July A year-old Indian student in Australia has been killed after meeting a teenage girl he had met through a dating site. Maulin Rathod, an accounting student, died on Tuesday.
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