PARLIAMENTARY PAPERS, SESSION 1882. DURING the Parliamentary Session it is proposed to give the titles, &c., of such Parliamentary Papers, Returns, Bills, Acts, &c., as have been issued from time to time. The following additional Papers have been already issued: ACT 45 VICT., CH. 2. AN ACT TO AUTHORISE THE USE OF REPLY POST CARDS. BILL No. 71. TO AMEND THE BANKING LAWS OF SCOTLAND (PREPARED 87. TO AMEND THE LAW OF BANKRUPTCY (PREPARED AND PAPER No. 51. ACCOUNTS No. - 76. COPY OF ADDITIONAL REGULATIONS UNDER THE SAVINGS No. 98. BANK OF ENGLAND. ANNUAL ACCOUNT OF EXCHEQUER NOTE. The foregoing Papers may be obtained as under:- Acts at Messrs. Eyre and Spottiswoode's, East Harding Street, Fetter Lane, E. C. Parliamentary Papers, Reports and bills issued by the House of Lords may be obtained at the Sale Office, House of Lords. Persons in the country, and others who may find it inconvenient to send personally to the above places, may obtain any of the Papers and Acts by communicating with Mr. P. S. King, Canada Building, King Street, Westminster, S. W., who undertakes, on payment of the cost and postage, to send them with as little delay as possible. JOURNAL OF THE INSTITUTE OF BANKERS. MAY, 1882. Sir JOHN LUBBOCK, Bart., M.P., President, in the Chair. INDIA-THE PURCHASING POWER OF THE RUPEE RELATIVE TO LABOUR, PRODUCE, &c., IN VARIOUS PARTS OF THE EMPIRE -THE CAPACITY OF THE EMPIRE TO ABSORB NEW CAPITAL, AND THE DIRECTION IN WHICH NEW CAPITAL WILL MOST PROBABLY BE REQUIRED. BY SIR RICHARD TEMPLE, Bart., G.C.S.I. [An Address delivered before the Bankers' Institute, Wednesday, March 15th, 1882,] THE somewhat difficult questions which have been propounded to me are-first, "The purchasing power of the rupee relative to labour, produce, &c., in various parts of the Empire;" secondly, "The capacity of the Empire to absorb new capital, and the direction in which new capital will most probably be required." The first point is the purchasing power of the rupee. Now, this sounds a formidable question, but it really refers to the rise of prices of all the necessaries of life and corresponding rise of wages. It also refers to the point as to whether, since the depreciation of the rupee about ten years ago, there has been any special rise either of price or of wages. In the first place, it is a notorious fact that the prices of almost all articles in India have greatly risen. This rise, however, began in the time of Lord Dalhousie, before the great war of the mutinies, when tens of millions of British capital began to be expended in the country. This rise, both of prices and of wages, was not at all arrested by the war of the mutinies, but continued rather at an increased ratio during the period of disturbance. When the disturbances were over, capital began to be expended more rapidly than ever, and prices went on rising. Not only were railways pushed on at an unexampled rate of speed, but also many new industries under European guidance, and with the resources of European capital, were introduced into the country, so that by the time of the viceroyalty of Sir John Lawrence-afterwards Lord Lawrence-the rates both of prices and of wages reached their culminating point. Since that time both the high rate of prices and the high rate of wages have been maintained, but not more than maintained. The rupee, as you know, has been depreciated, but still it seems to have at least the same purchasing power as it had before the depreciation set in. I need not detain you as to the causes of that depreciation, but these causes certainly set in immediately after the termination of the FrancoGerman War. The payment of the French indemnity to Germany, and the accumulation of silver in Germany, and the rapid demonetization of silver were among the causes. However, there are many other causes which you know have been so well set forth in the report of Mr. Goschen's Committee. The particular point to which this question refers, however, amounts to this: Has the rise of prices and of wages increased since, say, the year 1870 or 1871? Well, gentlemen, this is a matter of fact, and there is no time this evening for me to prove it to you, but I can assure you, on the whole, the best opinions in India are to the effect that there has been no particular rise since that time. Prices no doubt vary very much in India. For instance, all the necessary articles of food are almost always dear in Western India, and somewhat dear in Southern India, and much cheaper in Northern India and in the Punjaub, and particularly also in a part of Bengal; but Bombay is the centre of the area of dearness. With all these fluctuations wages rise, and have risen in a corresponding degree, though with respect to the wages there has been no particular rise since the year 1870. But the wages that have risen are generally those which are earned by the most skilled and industrious classes of native labourers. In the interior of the country and in many of the villages the wages are still lamentably low. But if any gentlemen are present now who were present at the last address I had the honour of delivering from this place, they will remember I particularly explained that with the poorer classes of labourers throughout the Empire of India wages are largely paid in kind, so that although the rates of wages may appear to be very low, and, on the other hand, the prices of food may appear to be high, nevertheless, the poorest and most helpless classes of labourers are paid in grain, so that they at all events do not feel specially the rise of prices. No doubt those who are paid in cash would feel the rise of prices; but their wages are much higher now than before. If generally the price of food has doubled, so has the rate of wages doubled for all skilled labourers. |