HYDERABAD / BRITISH INDIA :

After the ocean liner, SS Egypt , sank in the Celtic Sea on May 20, 1922, the events that unfolded over the next 17 years forced the Nizam VII, Mir Osman Ali Khan, to shift the printing of Hyderabad currency from England to Nashik.

On this day (May 19) 100 years ago, SS Egypt owned by The Peninsular and Oriental Steam Navigation Company, England, left Tilbury docks in London for Bombay (Mumbai). It had 44 passengers and 294 crew members, besides a large shipment of gold and silver and 1. 6 lakh pieces of Hyderabad currency, which had a face value of Rs 51,25,000.

The next day (on May 20, 1922), the ship collided with a French cargo ship and sank off Ushant in France. The Hyderabad currency shipped by Waterlow and Sons to the princely state of Hyderabad too went down into the sea. The treasure was salvaged a decade later in 1932, only to trigger a prolonged legal tussle.

“The Hyderabad currency comprised 40,000 pieces of Rs 100 Halli Sikka (HS), 1,00,000 pieces of Rs 10 HS, and 25,000 pieces of Rs 5 HS, totalling 1,65,000 pieces. The face value was Rs 51,25,000,” eminent numismatist and heritage expert . Amarbir Singh told TOI, adding that since the currency notes were unsigned, they did not legally carry value.

“In those days, the finance member’s signature was over-printed in Hyderabad after the notes arrived from England. Hence, the currency that sank with SS Egypt was valueless. For this reason, they were insured for their printed value of £2,000,” Amarbir said.

Stating that few of the notes salvaged had made their way to Hyderabad, resulting in a spate of legal fights, Amarbir said the issue was closed 17 years after the notes were printed which entailed seven years of negotiation and litigation.

“The government of Hyderabad decided it would be safer to print currency in India. The outbreak of World War II shortly after proved it was indeed a wise decision,” Amarbir said, explaining how the princely state changed location of currency printing from England to India.

The Hyderabad government requested Waterlow to destroy the notes and ordered a replacement stock from the printers, with the same series repeated, but in a slightly different type of font used in the serial number to indicate the difference. These were received and duly circulated, and the matter was regarded as closed, he said.

source: http://www.timesofindia.indiatimes.com / The Times of India / Home> City> Hyderabad> News> City News> Hyderabad News / by Syed Akbar, TNN / May 19th, 2022