The Sun.
London, England, 1861-12-30 00:00:00

THE INDIAN LOAN.

In the commencement of the current year, al-
though the cash balances on hand reached the large
amount of £11,448,135, it was anticipated that,
from short revenue receipts and additional expen-
diture consequent on the famine in the North-
west, the amount available in India would fall
short of the requirements, although after the re-
ductions in the army, and in expenditure gene-
rally, which will come into force during the year
should be fully carried out, it was considered the
revenue would more than meet the demands upon it.
It was taking this view of the financial position
of the Indian Government that induced Sir Charles
Wood to come to its assistance by remitting as a
loan X 1,000,000 in bullion, of which two-thirds were
designed for Calcutta and one-third for Bombay.
But while advising the Government of his intention
in his despatch of the 2d of May, 1861, that, at the
time of writing, the first consignment, amounting
to £167,556 4s. 4d. to Calcutta, and £92,782 17s.
Bd. to Bombay, had already been forwarded, Sir C.
Wood distinctly warned the Government that, as
the resources for the whole year were sufficient, he
should expect to be repaid the amount then itt course
of remittance towards the close of the financial year,
when it was anticipated the receipts from all sources
would considerably exceed the expenditure. The
amount remitted on the 9th inst. by the Govern-
ment of India to the Secretary of State for India
amounted to but £130,000. This was doubtless the
first instalment of the amount requisite for the re-
payment of the loan. Madras will be called upon
to take part in reimbursing Sir C. Wood out of ber
surplus revenue, and Bombay will have to liquidate
her own share of the debt. It argues well for the
finances of the country that the Government should
be able, at so comparatively early a date, to com-
mence the adjustment of this loan. We are now
only in the seventh month of the official year, and
as yet neither the accomplished reductions in estab-
lishments, military and civil, can well have made
themselves felt, nor can any very great increase of
revenue from new taxes have flowed into the trea-
suries. We can, therefore, only ascribe the ability
of the Government thus early to denude itself of a
portion of its cash to the beneficial results arising
from strict and judicious economy in the State ex-
penditure, and from the estimates of revenue
justifying the conclusion that the annual receipts
will be in excess of the expenditure. We own
to having taken a much more hopeful view of the
financial prospects of India since the publication of
the report on the estimates for 1862.63. The subject
entered on was so fully and ably discussed, that it
cannot have failed to have inspired in others the con-
fidence we have ourselves gained, that there is a po-
licy fairly adopted in the management of the State's
finances quite capable of controlling them to the
eventual advantage and prosperity of the country.
The more intimately we become acquainted with the
powers of the man who now at last rules the affairs
of India, the more we regret that he should for so
long have concealed the light that is in him, and
that it is only on the eve of his departure from
among us that he should have shone forth with the
new power that now characterises his actions.—
Calcutta Englishman.