Indian banking and credit facilities

SIR Basil Blackett, Finance Member of the Government of India, delivered an interesting address on Friday at Delhi University on “Indian Banking and Monetary Progress.” The subject is of considerable importance to India and is connected with the avoidance of foreign capital for the development of Indian resources. It is generally believed that there is sufficient unused capital in India for the government as well as industrial purposes and that it has only to be attracted by suitable facilities being offered for investment. This was demonstrated to some extent during the War and Sir Blackett referred to this fact as well as to the recommendation of the External Capital Committee, which suggested the development of banking facilities. His object in delivering the address was to draw public attention to the importance of the subject and prepare people’s minds for certain measures that the government proposed to take in the matter as well as to invite public cooperation. He pointed out the evils of employing capital for unproductive purposes and declared that, if only the people could be induced to invest money which they spent on gold and silver ornaments, the economic salvation of India could be easily reached and there would be less unemployment both among the educated class and the masses. India could, he said, then become a creditor instead of a debtor country as at present. Already during the last few years, Indian capital has been supplementing and replacing external capital to some extent. Indians are now holding a majority of the shares in mill companies, which for a long time have been financed almost entirely by Europeans.