87 



which will have to be remitted by Government. Out of the 

 sum of 18 millions, which the above account shows as the 

 excess of imports above exports^ about 12 millions will -have 

 to be deducted on account of the export duty on rice and 

 the freight earned by the Indian shipping, leaving about 6 

 millions for 12 years, or half a million per annum, without 

 taking account of remittances on account of private savings 

 and profits of trade of Europeans in India. This shows either 

 that the private capital brought into the country exceeded the 

 amount of the savings and profits above referred to during the 

 12 years for which the account is made up, or that the declared 

 values of imported and exported merchandise are, as already 

 observed, incorrect. Sir Eichard Temple estimated the private 

 remittances from India above referred to at 1| millions in 

 1870. The salaries of Europeans employed in Government 

 service in India aggregated b^ millions in 1886, and if one- 

 fifth of these salaries is remitted to England, the remittances 

 under this head will amount to one million. These remit- 

 tances, of course, stand on the same footing as furlough and 

 superannuation charges, included in the Secretary of State's 

 drawings already referred to. As regards interest or profits 

 on foreign capital invested in industrial undertakings in India, 

 it may be stated that it is almost impossible that the remit- 

 tances on their account can have any prejudicial effect on India. 

 For, if the undertakings are successful, the increased conti- 

 nuous ^^ employment provided for labour in the country must 

 exceed greatly in value the remittances on account of interest 

 and profits, while the influx of the capital itself will alter the 

 balance of trade for the time in favour of India. If, on the 

 other hand, the undertakings are unsuccessful, there will be no 

 remittances to make, while the capital brought into the country, 

 in so far as it has been employed in the payment of labour, will 

 have been^^ a gain. 



*' The accumulation of capital in England is so great that interest is continually 

 falling, and by competition the profits on investments are reduced. This meaas that 

 the profits must be very much less than the annual expenditure in industrial undertakings 

 carried on with foreign capital in India. 



*" Mr. Dadhaboy N'owrojee, of Bombay, who was examined before the Royal Com- 

 mission on the Value of the Precious Metals, presented an account of the balance of trade 

 in which he claimed credit, on behalf of India, for 10 percent, on the value of exported 

 merchandise, for freight, commission and insurance charges, and for another 10 per cent, for 

 the profits of trade. His contention was, " From the very commencement of ploughing — 

 for ploughing, seed, reaping, cart or railway carriage, — to the port of shipment, carriage 

 across the seas, all charges on both sides, commission, insurance and profits, i.e., for all 

 labour and materials for all these purposes payment has to be made from the exported 

 produce itself. Every one of these items takes its share out of that produce. Putting 

 it another way, every item is paid out of the value or proceeds of the produce. If the 

 produce does not realize sufficient proceeds to pay for all the above items, the exporter 

 has to paythe deficit from his own pocket besides getting no profit." When it was 

 pointed out to Mr. Nowrojee that India could not fairly claim credit for freight, 



