New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-17
GRAIN CONDITIONS IN INDIA.
DEFENCE OF THE GOVERNMENT POLICY
OF NON-INTERFERENCE IN
THE MARKET
Q the Editor Of The Tribune

To the Editor Of The Tribune
Sir; The position that the Government Of India
has taken regarding the grain trade during the
present famine has been frequently misunder-
stood Government non-inter1erence has been
a5uu5antly justified by results In India all are
satisfied that the wtsest course has been 10 let
the ordinary law o. supply and demand govern
the trade II grain. Il is only outside Of India.
where the conditions are not understood, that
thts course OF the Government OF India has been
asnorarrly blamed In PAST farniues the Govern
rnen- learned BY sad experience the mistake OF
being themselves importers OF grain for the starv-
ing. Under that system the regular grain mer-
chants had 10 calculate the arbitrary acts OF
the Government. instead OF the probabilities OF
the demand for grain This confusion OF necessity
led 70 cheap prices IN places but abnor-lally
high prices n others. thus increasing the distress
instead q relieving II. The Government had not
the er0rulous organization necessary TO carry the
grain into al the hundreds OF thousands OF VII
lagos SO that this well intended benevolence did
more harm than good
When the present famine began the Government
announced its firm decision not to interfere with
the grain trade. Merchants therefore made their
calculation OF The probable demand. and ordered
accordingly from parts OF India where the crops
were good. from Burmah and other countries. In
e great many cases the Importation TOO
great scale: prices did not rise 10 their expecta-
t.ons Many failures occurred, and the poor people
were benefited by this abnormal unloading Of i'm
ported grain. In tine however, the trade reached
q normal condition, and the price OF grain mas
been practically stationary all through the famine
months In years OF plenty the price OF grain is
about one cent 4 pound On account OF the utter
failure o. The local crops the market price rose
% little less han two cents pound. but has
renamed a. that price all through the famine
The naturally exr0rrtonare grain dealer has not
had a chance 10 reap the gold as Of yore- He
now AIDS competitors every side, who are at
tractec by the great activity OF the grain trade and
The regularity OF the market price. and thus
through natural channels grain has been going
70 even remote villages at less than TWO cents
pound
The fact that even in these famine times wheat
IS exported mas also been misunderstood, and the
Government Of India has been blamed for allowing
Il The explanation. however Il a simple
Wheat -- India IS luxury as compared with the
cheaper grains used by the people The good price
obtained by exporting wheat gives the farmers
more money, and hence the possibility OF a larger
supply o. the cheaper grains by importation To
1oraic the natural laws o. trade 10 work would be
Eccing TO the distress Of the country and only
ignorance Of midas economic conditions makes
the demand for governmental Interference Tbs
wheat thar goes out Of the famine brings in
larger quantity OF cheaper grain better suited to
me means o. the people IN their Impoverished
clifton AS illustration OF habits Of the
poorer classes IN such matters. when famine
q ~ had distributed gratuitousy good quality
q rice instead OF using what TO them a lux
Try they took II 70 the grain dealers and had it
exchanged for larger quantity Of poorer quail
Ky. Il vas quantity not quality. OF which the
L.4gry pecple fslr the need.
Z le days when grain dealers held large stores OF
E-S-l winch they would not sell though people
were dying around them. have passed away: Ger
AMY IN British territory railroads and good
NON roads have had the effect Of making exporta-
l-2a and importation cary. II ordinary years both
farmers and grim Geo ers prefer % exort All gram
- 5AeesS 81 their Dr05abis wants instead OF
-, 90 - Wte these facilities thus drain the coun-
- q excess CT needs 81 favorable years, they also
EJLA as lAe great channels OF importation when
N41-iL mas destroyed all local crops, and bring
-.--5s Al egueble distribution OF grain. such
So, 5l--.e been impossible under former cond-
49, M larze tnportations OF grain arc taking
-. -ss-lll-ons Of bushels being brought by
-I-lis % tie distributing centres, from where
- ar Or on backs OF buIlocks the petty grain
~5--@- supplies every LITTLE village
- eNpls4sls the paradox which some dnd hard
GIVING CT starvation
bersl .tFLaIlen Of the cheaper grains suit the
80 --Li-ss nas Deem greatly stimulated What
~ 1 15i5@g me people may have goes for grain
i.assliDLlS 70 whom work given relief camps
- 80 Il cash. and Il al goes for grain. The