Sept. 16.
Shanghai's uneasiness, over the reports that the Government, of India were contemplating another essay in ratiowmaking, appears to have been mitigated by Lord Willingdon's denial telegraphed from Simla on Monday. The reports had been discounted by reminders of Sit George Schuster's unequivocal nouncement in the early. the Summer, reinforcing the attitude which he has consistent. ly maintained since he succeeded Sir Basil Blackett. "Even m important was the Prime Min ter's pledge at the end of June, when the House of Commons was told that, the British Government would, if necessary, make themselves responsible for the "maintenance of India's credit. Yet uneasiness did. not vanish, for it was fel is might possibly impel a revision of Indian financial policy. The decline in Indian gold and security holdings, forming part of the Gold Standard Reserve, seemed ominous, However strong was the determination expressed by 'Mr, Ramsay MacDonald in June, his' will might be vitiated by an incapacity induced by the sudden climax which has so vitally changed his own position. The immediate effect of the Simla announcement on Monday as the Financial Editor point out yesterday, to weaken exchange and, so, give a mild stimulus to the Shanghai share et. The former result was not altogether unsatisfactory for nothing could be worse at the moment than a sharp rise in silver. If improvement, for which Shanghai so eagerly Icoks, is to come about it is greatly to be hoped that it comes slowly, for otherwise the adjustment of to the rise might prove most embarrassing.
It must, be confessed that Sir [George Schuster's comment to the correspondent at Simla does not carry. anyone very far. He has, of course, to consider his immediate audience. Even, s0, seeing that he was definitely asked to discuss reports emanate ing from Shanghai, he does not appear to have realised that airy references to his budget would not impress more distant observers. His budget is of interest in reflecting, as it must eventually do, Indian trade conditions, Resolutions, urging a change from the eighteen penny to the sixteen penny rupee are
Text read from the printed page and cleaned; old type leaves the occasional error.