New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-09-20
OVERBURDENED INDIA.
TRAINED OF IT'S PRODUCE TO PAY TAXES
A PROBLEM FOR THE BRITISH GoVhkN""N'
soIvr-DEPRECiArION OF SILVER.
fBY CABLE TO THE rRlBUNEl


soLvr-DEPRECfArION OF SILVER.
fpr CABLE TO THE rRlBUNEl
Copyright; 1856; North Arsrscdn Caoss "": o~ A..
Ioxnox. Sept. 19.-Dadabhai NaOrajL DIS
uneuished Hindoo merchant living III honuo" "na
,he highest native authority on the hnanciai
=, ,ndi. has given to THE TRIBUNE representative ''
uownx statement the relations Of India TO the s
xer ouestion as affected by the fall In rupee eAo"A
,,,n two shining ga to one shilling and fourpence'
We're India concerned merely In the fall IN eAch""so
and nothing else It would not nave ma''ofo" ~ ',
hcr ,oyond making the owners OF gold 80 inucu ron.
IN nroportion to the fall u silver as oompa'eu WIN
rols aud introducing an additional element OF .no
chance OF profit loss by fluctuations !" ','
a,s Of exchange while the transaction Is Penu
INC suppose l am willing to 10y out iV'oo0
rupees for importing, let us say, hty o'es OF sun
Taking two shi Jugs a rupee TO be the eAen""S'
shall have TO pay six shiinss ap'o0o :"
a, ,he market price India, that shall Do aoie "
-, :, 600 rnnees on sac whom the exchange goes
aoun 70 ono shilling aud fourpence. Unless ah no'o
% buv in England at four shillings piece e'"o.
cannot send the goods from I"u ~
the market price must rise 'u " ora
mncb or shall have 70 P9 ,
,na, ,our sh,ings In England. Under the oruin"''
oner.tion of economic laws 1t would not DO heoo'''
,ha, I should nay more than four shlings apiecc !"
rny,and gold beiug appreciated here; or III o.nei
words the prices OF all commodities having propoi
a,clv fallen the cost OF production to the
will he 30 much less IN god. what cost III" S'A 80
,,rs ., golo before now costs him only four snnnS'
a, cod and he Is able to sell TO mo al lour su'I'
vine, he formerly charged six shillings for ana III"
ohe 70 sell at the number of rnpees IN Inda AZ
a,d before when the exchange for the rupee was "o
shlings. ,,
The indentor from India pays more or less lh sou
according TO tie OF exchange, paying iesS bo'
when gold is high exchange IN silver iow' anu pay
ing more gold when gold is low and exchange i" '''i
ntcn the result being that the importer pays the suo
amount Of silver whether exchange IS 10" vi ms"
India, at the lower exchange does not Rc' nio'o So
for her exports, but less gold, ana i'r nor ""p
sha does not pay more silver but less soiu.
Rut what makes the fall in the exchange m"''ei Va
80, r,a, concern TO India is this She has 10 SEM 10
I,la,a at The value Of gold about 9.6,OOOOoo sterng
every year for homo charges India does not P'o
duce gold silver. 1t can only muAo ''
large remittance for home charges in It's prou'
nee When the exchange is two shlngs
rupee India has to send produce worth looooo'ooo
rupees but the exchange falls TO one shilling ana
fonr nance India has to send half much more,
or produce worth 240.o00.000 rupees The whole pay
ment of the homo charges and the private remttances
OF Europeans official and n0l-ohical come OUT oi the
xnorts prolucei by the subjects Of British India Tax.
ing this at 500 rupees the home charges alone
must absorb at shilling and four pence exchange
o4OOOOOOO rupees and the private remlttsnces OF
Europeans may be roughly put down as at least
100000 900. Then there remains produce worth only
ahont so 900 900 rupees that really forms the true
,rae ot exports belonging the Indian subjects OF
British India
Major Barring said as Finance Minister OF lndia III
1870 that the income per head Of the population or
India is not more than twentyseven rupees per
aupum; the taxpayug community Is exceedingly
moor and to derive any largo increase
Of revenue from so poor "a population is obviously I'm
possible
The result of this additional drain OF SOOO0O0o ru
nees from poverty stricken population already over
burdened with taxation most disastrous 1t not only
seronsly affects the material condition OF India, but
so the political aspect OF Engands occupation OF the
country II alayed 1t Is hard to say to what lengths
the feeling of wrechedncss and may lead
the inhabitants what serious consequences may oI
low.
Such Is not merely my view but that or the hiGhcs'
authorities IN the Government OF India In dsratch
dated February p 1886. truly said that this state
OF affairs would he an evil OF the greatest magnitude
f any country I'm the world, but in country such as
India it is pregnant with danger The Secretary
of state India expres ed the same
opinion and pointed out how irritating 10
people stepped poverty would be the
additional taxation imposed solely in consequence OF
foreign rule The be faced by the British Gov
ernment is to devise means whereby extra remit
tances OF produce to the fall in exchange may be
prevented II India not so seriously concerned III
this aspect OF the case England would have no occasion
10 modify its currency laws. All International trade
transactions will settle themselves in time with the
ultimate settlement of any rate OF exchange, nut 10
India OF luce according to the fal
IN exchange is increasing, permanent ana disastrous
evil"