Cash effects of the measure. For benefit of English reader
figures given in pounds sterling, a rupee taken at 2s. Rupee
prices little changed in India, China and Ceylon. Difficulty of
forming exact estimates as to this.

If gold value of silver can be forced up from 1s. 3d. to 1s.
4d., Indian Government will gain about one and a half million
sterling on its home remittances, and the people lose about seven
millions on their exports.

The Indian Finance Minister contemplates a rise to 1s. 6d.
eventually.

A rise to 1s. 6d. would give the Exchequer a gain on home
remittances of £4,500,000 and entail on the people a loss
£21,000,000, equal to a tax of 21 per cent. on the exports of
India. Effects of this on the producers.

The producers of coffee in Mysore alone would lose £56,000 a year
were exchange forced up to 1s. 4d., and £156,000 a year were it
raised to 1s. 6d. All producers in other parts of India of
articles of export would be similarly affected.

If the rupee is artificially forced up by the State, the shock to
confidence will repel capital and injure credit. The first effect
will show itself in a lessened demand for labour.

The effects of increased employment on the finances. The bearing
of the measure on famines and scarcity. It will intensify the
effects of both, and make them more costly to the State.