The Sun.
London, England, 1861-08-07 00:00:00

~. _. ~,

THE NE GT' IS DIA ,N" LOAN•

The falling off from the buoyancy which for 3
short time characterised the Ntav Indian Five per
Cent,. Loan is attributed, in a great measure in the
Stock Exchange to the statement of Sir C. Wood la
the House of Commons, calling in question the
satisfactory estimates of Mr. Laing. Mr. Laing
in his Budget held out hope ore surplus of £200,000,
Sir Charles Wood contradicts him, and says there
will be a deficiency of £1,000,000. Investors uat,ll.r
e
rally infar that the Government would not
so impolitic as to damage the prestige of futt
calculations of their representative, except uP°,
the most positive grounds. Consequently
least favourable figures are forthwith assumed
to be the correct ones. It is hard, however, by any
examination examination of the matter to justify this COTICIU;
sion. Of course, after the experience of heln_.
Budgets, it is but prudent in any case, and eall
daily in a country like India, to look to the
bility of a surplus being turned into a deficien't:
But if Mr. Laing's Budget ends in disappointment"
it will, so far as can be Judged from an examinatl,°°
of his statements by the side of those of Sir Charloet
Wood, arise from some unexpected quarter, and nihe
from any material defect in his dealings vvith,,'„tr
data thus far given. Properly weighed, in„,°',L
the differences suggested by Sir Charles 10°
are not real, but artificial. First, as to e%l3_,_eir;
diture in 1859 60 and 1860-1. It appears WI;
the figures of Mr. Laing for the latter year c°l4.
the same as those of Sir C. Wood, but that 't*°,
Charles diff-rs from the representations as se
1859 60. The matter is simply this the earl_
of an historical explanation of previous Budge;
Mr. Laing took that of Mr. Wilson for the year a,
question, because it represented nearly the Per,raif
nent rate of expenditure. Owing, howeverollain,e'r
to heavy arrears of Commissariat and ta
charges from the mutiny, which Mr. Wilson has
overlooked, that Budget proved too low by betWeeia
£5,000,000 and £6,000,000. But this sum we%
not recur, and hence, although Sir C. Wood is °,7;
rect in citing the larger amount if the object is,'
compare actual outlay in 1859 60 with 1860-61,1‘11.'
Laing was correct when his object was to del? °I;
strate that the proper and permanent expandits
of 1860 61 showed no decrease worth speakiug.tof
from 1859-60, and therefore to argue the necessi'
of large reductions in 1861-2. Next as to the qu',
tion of surplus or deficiency in the current yet;
Sir Charles Wood says Mr. Laing overlooked the
£470,000 loss on the rate of exchange at which 0.0
railway funds are remitted. This loss, howeverft;t
merely fanciful. Owing to an old arrange:a%
fixing the exchange at ls. 10d., the Indian Gover..,--
ment raise only ls. 10d. of capital through the el
panics in Ergland for every 2s. of capital they stead
in making railways in India. Hence, if they alie',ll
£6,000,000 in the current twelve months, they /1'
raise but £5,500,000 to meet it. The balaucel,°E,
£500,000 must be temporarily supplied out of t"0
surplus balances in the Treasuries, but to reek°st
such expenditure as part of the regular annual eftie
of government would be utterly deceptive. If
,y
amount can be conveniently met by the. Treasury
balances the affair is simply to be regarded asjit
advantageous investment of such balances. Ifs
cannot be spared in that way it must ultimately at
raised as additional railway share capital. TeLtren-pf
the question in any other way is simply to ter-fs
useless discredit on our political accounts. The neily
difference seems to be of an analogous and el?„';..
untenable character. Mr. Laing, in order, it is
'ie
derstood, to be on the safe side, took the saving! "e
home expenditure at £275,t100. It turns out there,
is a permanent saving of full £500,000. But thei°
are some arrears of accounts which may come if
£400,000. and prevent the saving being eater is"
felt till 1862, and Sir Charles Wood deals with t"he
fact in a manner which might lead any one ‘l'i
failed to investigate the subjeot narrowly t° ,i r
pose that reliance had been placed on a delus"to
advantage. Finally, there is the question as,o,
the amounts likely to be thrived from the
posed local Budgets. The whole estimate is °13,,0
£500,000, and it is said that the arrangemehea
already made insure a large portion of it. Whe,,"-a•
Mr. Laing's sudden illness and consequent der- ea
ture before the matter could be altogether organist°.
may cause a little delay or reduction is a Well 5,
stance on which it is needless to form conjecture°
Under these conditions it is evident that the 113°d‘,1
adopted by Mr. Laing in arriving at his geiler„a
deductions will bear the test of logical scrutiny, felt
that any disappointment that may have been ,
by the investors in the new loan from their belt
called in question is virtually without foundatieP
—Times City Article.