India appears to be precisely in the position which all
Bryanites allege to be true of all the West and South of the United States. There is not money enough in the banks for commercial purposes. The Government holds the great reserve of the country, which it calls the "Treasury balance," and which is very seldom, we may remark, above half as large as it should be. Lately it has been depleted by famine re- missions so far that the bankers, unable to use it, have, after raising their rate to 9 per cent., which is of course a heavy fine upon commerce, warned their customers that they might be compelled to suspend advances even upon the security of Government paper. Sir J. Westland, the Indian Chancellor of the Exchequer accordingly introduced and passed a Bill raising the paper currency reserve from eight to ten millions, thus releasing two millions sterling for commercial uses. This is, in fact, exactly equivalent to what we know in England as the Suspension of the Bank Charter Act. It is supposed that two millions will be sufficient, but the India Office is not wise in neglecting to set Indian "finance," as dis- tinguished from Indian taxation and currency, upon a better basis. It is folly to try to work the government and com- merce of a continent upon a cash reserve, only in part available, of less than ten millions. The minimum ought to be twenty.
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