These measures were sufficient during the severe crisis of 1908. Their sufficiency for the future will be discussed in Chapter VI. in dealing with the Secretary of State’s Reserves.
13. If we turn from the mechanism of remittance to the question of Government remittance as a whole, this can be explained most clearly by reference to a hypothetical India Office balance–sheet. The whole account for the year balances out in some such manner as this:—
| Payments | |
| Home Charges | x |
| Gold “earmarked,” or securities bought for Currency Reserve in London | y |
| Cost of silver + profit on coinage credited to Gold Standard Reserve in London | z |
| Expenditure on stores in London for capital purposes in India | v |
| Transfer of cash balances from India to London | ±w |
| ————— | |
| x+y+z+v±w | |
| ═══════ | |
| Receipts | |
| Council Bills cashed from balances in India | x–u+v±w |
| Council Bills cashed from rupees in Currency Reserve in India | y——––– |
| Council Bills cashed from new coinage | z——––– |
| —————— | |
| Total Council Bills drawn | x+y+z–u+v±w |
| Net capital borrowings in London | u |
| —————— | |
| Total receipts in London | x+y+z+v±w |
| ════════ | |
14. I will conclude this chapter with some statistics.
| 1909–10. | 1910–11. | 1911–12. | 1912–13 (revised estimate) | |
| £ | £ | £ | £ | |
| Home Charges (net)(a) | 18,763,000 | 18,003,000 | 18,333,000 | 18,986,000 |
| Capital expenditure in England on material for railways and irrigation works | 5,748,000 | 5,188,000 | 5,083,000, | 7,077,000 |
| Credited to Gold Standard Reserve in England(b) | 8,090,000 | 600,000 | ... | 1,200,000 |
| Credited to Paper Currency Reserve in England | 1,000,000 | 2,545,000 | 1,988,000 | 400,000 |
| Purchase of silver | ... | ... | ... | 7,059,000 |
| Addition to Cash Balances in England(c) | 4,815,000 | 3,898,000 | 1,693,000 | ... |
| 38,416,000 | 30,234,000 | 27,097,000 | 34,722,000 | |
| Council Bills and Transfers | 27,096,000(d) | 26,783,000 | 27,058,000 | 25,760,000 |
| Gold from India | ... | ... | ... | 1,928,000 |
| Net debt incurred in England(e) | 11,320,000 | 3,451,000 | 39,000 | –2,983,000 |
| Reduction of Cash Balances in England | ... | ... | ... | 10,017,000 |
| 38,416,000 | 30,234,000 | 27,097,000 | 34,722,000 |
(a) After deduction of certain small sources of revenue in England and various minor adjustments.
(b) Apart from dividends earned and reinvested in England.
(c) Excluding balances in Gold Standard Reserve.
(d) Deducting bills on London sold in India.
(e) Excluding reduction of debt by annuities and sinking funds included in Home Charges.