rest, Rs. 25,150,000 (= £1,677,000, or $8,385,000). The capital of the exchange banks, which is not kept in India, was £8,945,000 (= $44,725,000), and reserve and rest, £3,298,000 (= $16,490,000). The total capital of these banks is not great, and it has not grown in proportion to the growth in the foreign and internal trade of India. In the last twenty-five years the public deposits of the Presidency banks have been almost stationary, while the private deposits in those banks, and still more in other Indian banks, have increased rapidly. The capital and reserves of Indian banks bear the high proportion of 1 to 3 of deposits. The deposits in India of the exchange banks have increased faster than those of the Indian banks. Complaints have been made of the inability of the banks to manage commercial credit satisfactorily, and severe monetary stringency sometimes occurs in Calcutta and Bombay. To remedy this evil, it has been proposed to concentrate the capital of the Presidency banks by forming one great Bank of India, but opinions differ widely as to the merits of this proposal, and the scheme has been postponed indefinitely. The following table shows the bank deposits in India for the last five years available:

Indian Banks

...

=

£14,497,600 13,913,500 12,866,400 13,479,000 14,076,500 $72,488,000 69,567,500 64,332,000 67,395,000 70,382,500 Exchange Banks £6,872,400 6,768,700 6,059,600 6,328,600 6,936,000 $34,362,000 33,843,500 30,298,000 31,643,000| 34,680,000

Total ...{

=

£21,370,000 20,682,200 18,926,000 19,807,600 21,012,500 = $106,850,000 103,411,000 94,630,000 99,038,000 105,062,500

Earnest attention is now being given to the institution of agricultural banks in India with the aid and encouragement of the Government.

Besides the banks above enumerated, there are many firms of bankers and agents, of whom the following may be named: T. Cook and Son, Calcutta, Bombay, and Rangoon; W. Watson and Co., Calcutta, Bombay, and Karachi; Grindlay and Co., Calcutta ; Grindlay, Groom and Co., Bombay; King, Hamilton and Co., Calcutta; King, King and Co., Bombay; Thacker, Spink and Co.,

Calcutta; Andrew Yule and Co., Calcutta; Balmer, Lawrie and Co., Calcutta; Gillanders, Arbuthnot and Co., Calcutta and Rangoon; D. Sassoon and Co., Calcutta and Bombay; Latham and Co., Bombay and Karachi; Forbes, Forbes and Co., Karachi; Scott and Co., Rangoon; Arbuthnot and Co., Madras; Best and Co., Madras; Binny and Co., Madras; Gordon, Woodroffe and Co., Madras; Parry and Co., Madras.

Bank Rates.-The following table shows the average minimum rate of discount per cent. per annum at the Bank of Bengal for each half-year and year from 1896 to 1900:

It will be observed that the rate is usually much higher in the earlier half of the year. Frontier war and famine caused monetary stringency in 1897-8.

CHAPTER IV.

IMPORTS AND EXPORTS.

The total trade-Value per head-Gold and silver-Excess of exports—Land trade-Table of total trade-Sea-borne trade with countries, with tables of imports and exports-Sea-borne imports of merchandise, with tables of quantity and value-Imports of cotton goods, metals and metal manu. factures, sugar, and mineral oil, with tables-Sea - borne exports and re-exports of merchandise, with tables of quantity and value.

The Total Trade.--The following table showing the trade of the last five years requires a few comments. During 1896-97 and 1897-98 severe famine affected vast areas, and exports declined heavily. The outbreak of plague in Bombay and Sind dislocated trade still further. Famine requirements and other causes gave rise to a drain of money, which entailed contraction of credit. Matters improved in 1898-99, a year of comparative prosperity. But 18991900 and 1900-1901 brought more troubles, famine and plague recurring with great severity. Yet, bad as things were, the total trade returns in 1900-1901 reached the highest point recorded; for, though exports declined, imports advanced, the probable explanation being that the high prices received for abundant crops in non-famine areas enabled the purchasing power of India as a whole to be maintained.

Value of Trade per Head.-The value of the trade per head of the population is small. The per capita value of the imports in 1900-1901 was about 4s. 8d. (or $1.16), of the exports 5s. 4d. (or $1.33), and of the total trade 10s. (or $2.49).

Gold and Silver.--A remarkable feature of Indian trade is the constant net import of the precious metals. In the five years covered by the table, the transactions in gold and silver were exceptional, owing partly to the currency operations of the Government, partly

to the slackened demand of the natives for these metals for purposes of ornament in consequence of famine.

Excess of Exports.—Another prominent feature is the constant excess of exports over imports. This arises from the fact that India, besides her payments for imported goods, has to pay interest on loans raised in England for railways and general purposes, and has also to defray the charges incurred in England for services and stores of a civil and military character. The excess of exports also covers profits on capital invested industrially in India, as well as payments for ocean and coasting freights, India having very few ships of her own. Land Trade. The land trade is carried on with Persia, Afghanistan, Central Asia, Nepal, Tibet, Western China, and Siam. Cotton goods, European and Indian, constitute the chief exports over the land frontier, salt, provisions, and metals coming next. The chief imports are rice, teak, and provisions.

VALUE OF THE TOTAL TRADE OF BRITISH INDIA IN POUNDS

Total Exports .. 72,614,000 69,855,000 80,141,000 78,027,000 81,327,000

Total Sea-borne Trade.. 132,082,000 132,640,000 140,139,000 142,212,000 151,641,000

VALUE OF THE TOTAL TRADE IN DOLLARS.

SEA-BORNE TRADE.

Imports:

$

$

Private Merchandise.. 239,315,000 230,890,000 227,935,000 235,705,000 254,260,000 Government Stores 14,410,000 14,600,000 12,405,000 15,310,000 15,390,000 Gold and Silver 43,615,000 68,435,000 59,650,000 69,910,000 81,920,000

363,070,000 349,275,000 400,705,000 390,135,000 406,635,000

660,410,000 663,200,000 700,695,000 711,060,000 758,205,000

15,980,000

Gold and Silver

Total Imports

2,810,000 18,790,000

It should be observed that in the tables in this chapter only merchandise imported or exported by private persons or firms is taken into account, unless Government stores are specially indicated. Gold and silver are excluded from all but the first table. The Indian rupees have been converted at fifteen rupees per pound sterling, and at three rupees per dollar. The figures are for the year ended March 31.

Sea-borne Trade with Countries.—The statistics of the quantities or values of goods imported and exported refer only to the countries whence the imports come, and to the destination of the exports, as shown in the bills of entry and shipping bills respectively; they do not indicate the prime origin of imports or the ultimate destination of exports. Thus, in 1899 Switzerland sent to India a large quantity of cotton goods, but no Swiss goods appear in the Indian trade returns, as the ports of shipment were probably Italian or French. The declarations in the shipping doeuments undergo scrutiny, and penalties may be inflicted for false