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

THE NEW INDIAN LOAN.

The falling off from the buoyancy which for a
short time characterised the New Indian Five per
Cent. Loan is attributed in a great measure in the
Stock Exchange to the statement of Sir C. Wood in
the House of Commons, calling in question the
satisfactory estimates of Mr. Laing. Mr. Laing
in his Budget held out hope of a surplus of £200,000.
Sir Charles Wood contradicts him, and says there
will be a deficiency of £1,000,000. Investors natu-
rally infer that the Government would not be
so impolitic as to damage the prestige of the
calculations of their representative, except upon
the most positive grounds. Consequently the.
least favourable figures are forthwith assumed
to be the correct ones. It is hard, however, by any
examination of the matter to justify this conclu-
sion. Of course, after the experience of home
Budgets, it is but prudent in any case, and espe-
cially in a country like India, to look to the possi-
bility of a surplus being turned into a deficiency-
But if Mr. Laing's Budget ends in disappointment,
it will, so far as can be judged from an examination
of his statements by the side of those of Sir Charles
Wood, arise from some, unexpected quarter, and net
from any material defect in his dealings with the
data thus far given. Properly weighed, in
fact,
the differences suggested by Sir Charles Wood
are not real, but artificial. First, as to expen-
diture in 1859-60 and 1860-1. It appears that
the figures of Mr. Laing for the latter year are
the same as those of Sir C. Wood, but that Sir
Charles diff:Ts from the representations as to
1859-60. The matter is simply this :—ln the course
of an historical explanation of previous Budgets,
Mr. Laing took that of Mr. Wilson for the year ill
question, because it represented nearly the perma-
nent rate of expenditure. Owing, however, mainly
to heavy arrears of Commissariat and other
charges from the mutiny, which Mr. Wilson had
overlooked, that Budget proved too low by between
£5,000,000 and £6,000,000. But this sum would
not recur, and hence, although Sir C. Wood is cor-
rect in citing the larger amount if the object is to
compare actual-outlay in 1859.60 with 1860-61, Mr.
Laing was correct when his object was to demon-
strate that the proper and permanent expenditure
of 1860 61 showed no decrease worth speaking of
from 1859.60, and therefore to argue the necessity
of large reductions in 1861-2. Next as to the ques-
tion of surplus or deficiency in the current year.
Sir Charles Wood says Mr. Laing overlooked the
£470,000 loss on the rate of exchange at which the
railway funds are remitted. This loss, however, is
merely fanciful. Owing to an old arrangement
fixing the exchange at ls. 10d., the Indian Govern-
ment raise only ls. 10d. of capital through the com-
panies in Ergland for every 2s. of capital they spend
in making railways in India. Hence, if they spend
£6,000,000 in the current twelve months, they will
raise but £5,500,000 to meet it. The balance of
£500,000 must be temporarily supplied out of the
surplus balances in the Treasuries, but to reckon
such expenditure as part of the regular annual cost
of government would be utterly deceptive. If the
amount can be conveniently met by the Treasury
balances the affair is simply to be regarded as all
advantageous investment of such balances. If it
cannot be spared in that way it must ultimately be
raised as additional railway share capital. To treat
the question in any other way is simply to throw'
useless discredit on our political accounts. The nest
difference seems to be of an analogous and equally
untenable character. Mr. Laing, in order, it is un-
derstood, to be on the safe side, took the savings is
home expenditure at £275,000. It turns out there
is a permanent saving of full £500,000. But there
are some arrears of accounts which may come to
£400,000, and prevent the saving being entirely
felt till 1862, and Sir Charles Wood deals with this
fact in a manner which might lead any one who
failed to investigate the subject narrowly to sup-
pose that reliance had been placed on a delusive
advantage. Finally, there is the question as to
the amounts likely to be derived from the pre-
.posed local Budgets. The whole estimate is only
£500,000, and it is said that the arrangement!'
already made insure a large portion of it. Whether
Mr. Laing's sudden illness and consequent depar •
ture before the matter could be altogether organised
may cause a little delay or reduction is a circum-
stance on which it is needless to form conjectures.
Under these conditions it is evident that the mode
adopted by Mr. Laing in arriving at his general
deductions will bear the test of logical scrutiny, and
that any disappointment that may have been felt
by the investors in the new loan from their being
called in question is virtually without foundation.
—Times City Article.

COUNTRY MARKETS.