India has also many points in common with China. The same extent of territory as also dependence upon foreign countries for manufactured goods, apart from the level of wages and prices, make India even better as a parallel to China than the United States. The currency of the country is exclusively controlled by the Government - both metallic and paper currency. Of course, there is no question as to who should issue or control metallic currency; the central bank question is only in connection with paper issues and the regulation of banking and trade. The chief difference between India and other note-using countries is that the function of note issues in India is wholly dissociated from the function of banking; the Government issues notes of various denominations, some of the notes being acceptable throughout the country and some only exchangeable within the particular "circle" in which they are issued. The Government keeps the reserves in gold, in India and in London, silver rupees and securities. The gross circulation of paper currency improved from £18,000,000 in 1892 to £46,000,000 in 1913; for this issue, £25,500,000 was kept as reserve in gold, £11,000,000 in rupees and £9,500,000 in securities, in the year ended March 31, 1913. Any further detail with regard to the paper currency in India is not necessary for the present. But some salient points are worth noting. The Government maintains an independent treasury system in India as in the United States. There is, of course, difference of opinion as to the advantages or disadvantages of this system in which the Government has no banker. The volume of currency cannot be temporarily expanded to meet the seasonal demands of trade by some credit device, within the country itself. Although the condition is similar in the United States, the large use made of the cheque system in the latter country helps to make the currency there much more elastic. In India, resort has to be made to council bills on London or sovereigns have to be brought in. There is no credit money in India to any large extent; even this is not considered altogether an evil, because prevalence of too much of credit money is not always likely to conduce to sane commerce. The Government of India issues the notes and the Presidency Banks perform the function of the central banks of the different localities. Although owing to various causes these banks are not in a position to place all the money that trade needs at certain seasons at the disposal of merchants, the report of the Currency Commission of 1913 has shown that they have performed their functions quite satisfactorily. As in the case of the United States authorities, the members of the Commission have been strongly of opinion that a central bank is entirely unsuited for a large extent of territory; because supervision by any bank, however powerfully constituted, over an unwieldy area is not compatible with sound business and credit. Above all, it cannot be sufficiently emphasized that undue expansion of credit is' more injurious to the State and the trade than even a want of it.