Sour of the Indian newspapers have been writing in exultant terms of the expansion of the import trade during Into years, especially the last. Both Calcutta and Bombay have shared in the benefit, and though the western city has increased her trade somewhat at the expense of her rival, the progress made by both proves that the prosperity of the whole country is the real cause of the striking development that has taken place, Railway facilities and cheaper rates have no doubt given some advantage to Bombay, which has diverted to her some of the demand for goods which were formerly supplied from Calontta, but though this would account for the increased import at the former, it does wot explain the great expansion of the combined trade of both, No doubt the bad trade of two or three years ago, caused, to a Inrge extent, by the famines, bad depleted the markets of goods, ro that when after one or two favourable seasons a demand set in, very large and unusual imports bad to be made to meet it, Food and all other necessaries of life have been cheap and plentiful among the people, and fair prices have been obtained by therm for their produce, The opening up of India by railways no doubt causes the prosperity of the poorer people to have much more immediate effect on the trade in imports than formerly, When farmers got n little money in band they are apt, under the new conditions of life, to spend n part of it, at least, in supplying themselves at once with necessities and comforts, especially when those are obtainable at cheap prices, heir own crops are bought and paid for as soon as they themselves are ready to strike a bargain, and though the prices they obtain appear to be small alongside those of a few years since, yet everything they require to purchase bias also become very cheap. Then, again, a demand for many things, of which wheat is the chief, has set within the present generation, and the large sums which have been paid for these has brought comparative wealth to large and purely agricultural districts. And though the good effect on the people of the increased railway communication has been great, the newspapers point out that had the means of transport been more extended, large quantities of grain, the surplus of last year's abundant harvest, would have been sent to market. From the want of sufficient transport, considerable quantities of produce have remained on the hands of the farmers, who have thas not received the full benefit from plenteous seasons, But the extension of railway and canal communication throughout India, will, in a few years, place the people of even secluded and remote districts on somewhat equal terms with those who live in parts nearer to the foreign markets. In the. matter of railway extension greater caution is being shown than formerly, but the work is going forward. And we may note, in passing, an instance of the care which the Indian Government is taking to foster the industries. It is stated by one of our contemporaries that the Government "has under its serious cou-sideration the question of establishing cheap and expeditions system of river communication with Assam, in order to relieve the tea and other industries from the Ligh rates of freight that are charged by the two Steam Navigation Companies which have the carrying trade in their hands at present." This is quite opposed to our ideas of the proper fanctions of Government, but the paper from which we quote says that the circumstances of the case are far from ordinary and that it is to the Government alone that the public can look for such competition as will relieve trade from the heavy freight now exacted by the existing Compa:
In Galeatta, alone, the increase la the import trade daring the Inst financial year was three and a half crores of rupecs—and took place chiefly on duty from cotton goods. With reference to those, the Englishman says that they have it on the best authority that an ordinary shirting cloth, made of heavy yarn, to pass duty free, and in texture equal to, if not better than, the old dariable cloth made of equal amount of pure cotton, can be produced at nine per cent Jess cost, including the former duty, and this saving now goes into the pockets of the people. If such cheapening has taken place in cotton goods generally, much of the increase in this consumption is accounted for. Ten years ago the average monthly shipments of cotton to Calcutta were 45, and to Bombay 22 millions yards; during last year they amounted to 79 and 37 millions respectively, and this notwithstanding the largely increased production by native mills, If we turn to the smaller imports we find ample evidence in them of the prosperous condition of the people, both foreign and native having been taking more articles of the natare of Inxuries, In jewellery alone, there was an increase of over twenty-two lacs of rupees last year, which may either have arisen from extraordinary causes, or from the growth of the general wealth.
As the export trade of India has not increased to the same extent as the imports, the extension of the latter has had a considerable -effect on the imports of treasure, which show a fall. ing off during the last twelve months, and has had a depressing inflaence on Indian exchanges and the silver market. Should a farther development of the trade in cotton goods take place, or even the present demand be maintained, the English manufacturers will look with complacency on the low prices of silver; while, if these bring about Jarger exports the Govern. ment will find therein some coned tion for their losses by exchange. Cheap money is having the effect in India, which it has always bad elsewhere, of stimulating enterprize and making many commercial operations possible, which another financial condition, say a rise of eight or ton per cent. in exchange, would render unprofitable and impossible.
Text read from the printed page and cleaned; old type leaves the occasional error.