Currency operations

THE report of the Controller of Currency on the operations of the department for 1924-25 explains the general features of the year, the nature of the foreign trade and various transactions of the government that helped to maintain a more or less satisfactory condition regarding Indian exchange and currency systems. The improved financial conditions in Europe and the satisfactory rainfall in the major part of India, followed by agricultural prosperity, led to the revival of large exports from India and the flow of money into the country. The finances of the government also improved considerably and a reduction was made in provincial contributions. The main feature of the foreign trade was increased exports and reduced imports. The total value of exports was Rs 385 crore, consisting of cotton and cotton manufactures of the value of Rs 103 crore, jute and jute manufactures of the value of Rs 81 crore and grains Rs 65 crore. The total value of imports was Rs 243 crore, the most important articles being cotton manufactures of the value of Rs 83 crore, sugar Rs 20 crore, iron and steel Rs 19 crore. The reduction in the value of imports, in spite of favourable exchange, was due to the high price of manufactured goods, which is reflected in the fact that India imported 1,820 million yards of cloth during the year against 3,200 million yards in 1923-24, though the price paid was more than double. The result of this was the large import of gold and silver into India during the year, which was helpful in easing the financial condition and steadying the exchange rate.