S6 



account is taken, exceeds or falls short of the remittances on 

 account of interest due for previous borrowings or for other 

 purposes. India has practically little or no share in the carry- 

 ing trade, the tonnage of British Indian shipping bearing only 

 the proportion of 3*8 per cent, to the total tonnage of the foreign 

 trade, amounting to 7^ million tons. As regards the duty on 

 exports, the only article that pays duty is rice, the revenue 

 derived from this source being about f million Ex. The duty 

 on opium is an excise duty, and it is included in the values 

 shown in the customs house returns, India has, of course, 

 borrowed, and is borrowing largely, from England for the con- 

 struction of productive works. In the statement of the trade 

 of British India for 5 years ending 1888-89, presented to 

 Parliament, the following account of the balance of trade, based 

 on the statistics of 12 years ending 1888-89, is given : — 



Rx millions. 



Exports of merchandise excluding Government transactions. 965 

 Do. of treasure ... .. ... ... ... ... 21 



Indian securities enfaced for payment in England ... ... 46 



Total ... 1,031 



Imports of merchandise excluding Government transactions. 638 



Do. of ti'easure ... " ... ... ... ... 151 



India Council bills 218 



Government securities retransf erred to India ... ... 32 



Bills for interest on enfaced paper ... ... ... 10 



Total ... 1,049 

 Balance of Imports ... 18 



In the above account, the values of Government exports 

 and imports have been excluded from the values of exports 

 and imports of merchandise shown, as the net value of Govern- 

 ment imports has been included in the amount of the bills 

 drawn on India by the Secretary of State. Similarly, the 

 loans raised in England on account of India have been 

 excluded, as the amount of the Secretary of State's bills repre- 

 sents the difference between the amount of remittances to be 

 made to England and the proceeds of the loans. The bills 

 drawn by the Bank of England for the payment in England of 

 interest on Indian securities enfaced for that purpose will 

 increase exports from India by a corresponding amount, while 

 the securities themselves will increase the imports or exports 

 according as they are transferred to England or retransf erred 

 to India for value. If, however, such securities are taken 

 over to England by persons holding them, there will be no 

 effect produced on the balance of trade beyond increasing the 

 exports to the amount of the interest due on the securities 



