83 



case of the Gwalior loan), the result would no doubt be bene- 

 ficial, but even in that case it is better that such capital should 

 seek investment in industrial undertakings. If loans have to 

 be contracted in foreign markets, it is desirable that Govern- 

 ment with its superior credit should contract the loans rather 

 than private individuals who cannot command equally favorable 

 terms. 



(h) There is one further consideration to be borne in mind 

 in connection with remittances for interest on debt, viz., that 

 the influx of money into the country when loans are con- 

 tracted and consequent rise in prices is a set-off against the 

 depression due to remittances on account of interest in subse- 

 quent years. 



(i) As regards remittances made to England to meet the 

 charges in connection with the army, superannuation and fur- 

 lough allowances of European officers employed by the Gov- 

 ernment of India, and the establishments of the Secretary of 

 State for India and his Council, amounting in all to nine 

 millions Ex, it is not necessary to say much, as they are all 

 charges necessary to secure that peace and that good gov- 

 ernment which have rendered the increased production and 

 the increased trade, which have taken place within the last 

 forty years, possible. That the gain to the country from the 

 increased production and increased trade is far in excess of the 

 charges referred to, there cannot be the slightest doubt. The 

 additional production from the extension of canal irrigation 

 alone amounts to twenty millions Ex. I do not, of course, 

 mean to say that the charges are not capable of being reduced, 

 and that, in so far as they are unnecessary or unduly high, 

 persistent efforts should not be made to enforce economy. 

 Considering the question merely from the point of view of the 

 benefits conferred by foreign trade, apart from the desirability 

 of keeping all governmental expenditure at the lowest point 

 consistent with the efficient discharge of the duties which the 

 circumstances of this country require to be undertaken by 

 Government, and apart also from the higher considerations 

 which render it necessary that the natives of the country 

 should be entrusted with positions of high trust and responsi- 

 bility in the Civil and Military services, in a liberal and not 

 grudging spirit, both as a matter of justice and as a means of 

 accelerating the advance of the nation in moral and material 

 well-being, I have no hesitation in stating that the sacrifices 

 involved in the payment of the Home charges are repaid 

 manifoldly by the benefits secured to the country, and that 



