History of the Qaraunah Turks in India c8.142

c8.142

There is another explanation of this currency muddle which needs mention. The Sultan was compelled to have recourse to this expedient by the shortage in the world's supply of silver. There was a great scarcity of coins in England in the reign of Edward III about the year 1335 A.D. and the preamble of his first statute on the subject complains that diverse persons beyond the seas do endeavour themselves to counterfeit our sterling money of England, and to send into England their weak money in deceit of us, and damage, and oppression of our people, and in order to prevent this evil he forbade the export of bullion without a license.⁶⁸ Similar difficulties were felt in other countries. The Dutch also made a strict law forbidding the export of bullion. Scotland experienced a similar difficulty, and the debasement of currency led to considerable inconvenience in that country. The need for money was pressing, and the legislation of these countries betrays a desire to multiply the currency for ordinary purposes. Muhammad Tughluq, on coming to the throne, was confronted with a serious problem, created by the scarcity of silver and its depreciation, consequent upon the influx of gold from the Deccan into Hindustan. Soon after his accession, he introduced a gold *dinar* of 200 grains and an *adali* or a silver coin of 140 grains in place of the gold and silver *tankahs*, which had hitherto been in use, and which had weighed 175 grs. each. The introduction of the gold *dinar* and the revival of the *adali* show that there was an abundance of gold and a relative scarcity of silver in the country. The relative fall in the value of gold had created a divergence from the usual rate of exchange, 10 to 1 as between the current silver and gold coins. Mr. Edward Thomas is of opinion that 8:1 was the normal ratio of gold and silver in the country, but he does not clearly state his reasons for making this statement.⁶⁹ An examination of the ratio of gold and silver in the middle ages in the east and west leads to a different conclusion which supports the ratio 10:1.⁷⁰ When the Sultan came to the throne, he noted this divergence. Now, three courses were open to him: