By early 1918 the Indian currency system was close to collapse. In Bombay political discussion of the Montagu-Chelmsford reforms was overshadowed by tumultuous scenes on the exchanges as merchants scrambled to cash their rupee notes for the dwindling stock of silver. Given London’s precarious position, only the United States had the resources to underwrite the monetary system of the Raj. On 21 March Washington announced that it would throw open for sale the enormous silver reserves of the US. Under the Pittman Act the sale of 350 million ounces of silver was approved, at the fixed price of one
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