69 



the century. The causes of this sudden rise have already been 

 mentioned ; they may be briefly recapitulated as follows. The 

 gold discoveries of America and Australia in 1848 led to a 

 large influx of gold into Europe, raising prices and creating a 

 demand for Indian productions. The substitution of gold for 

 silver in the currencies of the principal European countries 

 cheapened the latter metal and made it available for export to 

 India. The Crimean War at the same time led to the develop- 

 ment of the trade of India in jute and oil-seed^. The Indian 

 Mutiny necessitated large remittances in silver for expendi- 

 ture in India, and the construction of public works, especially 

 railways, had the same effect. The American War and the 

 consequent Cotton famine in England developed an enormous 

 trade in the somewhat hitherto despised Indian cotton. The 

 net imports into India of gold and silver which in the decade 

 ending 1849 was 21 millions sterling rose successively lo 70 

 millions in the decade ending 1859, and to 159 millions in the 

 decade ending 1869. TMrdly^ after 1870, prices fell by about 

 20 per cent, from the level they had attained in 1865, but were 

 nevertheless nearly twice as high as in 1853, and 50 per cent, 

 higher than in the earlier years of the century. The re-action 

 was brought about of course by the cessaticn of the causes 

 which had led to the influx into India of the precious metals 

 in the previous decade. The cotton famine in England ended 

 with the American war and the United States resumed their 

 position as the chief suppliers of cotton to England, and the 

 loans for the construction of public works in India ceased. 

 India, instead of receiving large sums of money, had to remit 

 large sums in payment of interest on the obligations already 

 contracted and to meet the increased charges incurred in 

 England as a consequence of the amalgamation of the Indian 

 Army with that in England. The net imports of gold and silver 

 amounted in the five years ending 1874 only to 15 and 18 

 millions against 29 and 50 millions respectively in the previous 

 five years. Fourthly^ leaving out of account the last two years 

 of drought, the average prices of the previous five years show 

 a slight increase as compared with those in the five years 

 ending 1874, i.e.^ the years immediately preceding the great 

 famine of 1876-78. 



28. The great benefits conferred on the country by the 

 Effect of the improve- improvement of communications are too 

 ment of communications obvious to need detailed consideration. 

 *^° ^"^^^' Nevertheless a few facts gleaned from the 



old rej)orts will here be given to enable us to realize what 

 immense advance there has been in this direction. Owing to 



