Statement C. Showing Exports and Imports of India, and proceeds of Council Bills drawn from 1870-71 to 1875-76.

Year.

Value of merchandise exported.

Treasure exported.

Total.

Value of merchandise imported.

Treasure imported.

Proceeds of Council Bills drawn.

Total.

Apparent balauce in favor of India.

£

£

£

£

£

£

£

£

1870-71

55,336,186

2,220,765

57,556,951

34,469,119

5,444,823

8,443,509

48,357,451

9,199,500

1871-72

63,189,732

1,495,642

64,685,374

32,091,849

11,573,813

10,310,339

53,976,001

10,709,373

1872-73

55,231,463

1,308,579

56,540,042

31,874,625

4,556,585

13,939,095

50,370,305

6,169,737

1873-74

54,981,561

1,958,512

56,940,073

33,836,029

5,792,533

13,285,678

52,914,240

4,025,833

1874-75

56,359,229

1,625,309

57,984,538

36,222,087

8,141,046

10,841,615

55,204,748

2,779,790

1875-76

56,210,000

2,200,235

58,410,235

38,515,000

5,300,072

12,389,613

56,204,685

2,205,550

Total

341,308,171

10,809,042

352,117,213

207,008,709

40,808,872

69,209,849

317,027,430

35,089,783

In recent years great changes have taken place in the mode of conducting our business with India and the far East, and while some of these have been advantageous, others have tended to increase the uncertainty, and thereby add to the difficulties of Eastern exchange banking. Among the most important influences conducing to these changes may be mentioned the opening of the Suez Canal, and the completion of direct telegraphic communication with India and China. The former has greatly facilitated the transmission of merchandise between this country and the East, and it is mainly in consequence of the large shipments of produce now made by steamers passing through the Canal that the usance of a considerable portion of the bills at present drawn in India has been changed from six months' to three months' sight. This is particularly noticeable in the case of bills drawn in Bombay against consignments of cotton, seeds, etc, and now that shipments round the Cape of Good Hope have largely diminished, it appears probable that the shorter usance will become very generally adopted. Improved telegraphic communication has introduced an entirely new feature into our Eastern business, which we have already briefly referred to, viz., the payment of money under telegraphic advice. With the aid of a private telegraphic code, these payments can be made with the greatest accuracy and despatch. For instance, a merchant in Calcutta wishing to remit a sum of money to his correspondent in London applies to a bank, say at 3 o'clock in the afternoon, for a telegraphic transfer. The necessary advice is immediately wired on by the bank, and if the lines are in proper working order the amount is paid over by its London office to the person indicated during banking hours on the same day. It is even unnecessary for the Calcutta merchant to advise his correspondent by wire, as the bank will do that for him. The difference in the rate of exchange for telegraphic transfers as compared with that for demand drafts does not usually amount to more than a charge for interest for one month at the rate of 5 or 6 per cent. per annum.

The telegraphic charges are trifling, and it costs no more to remit £20,000 than it does £20.

The advantages both to the banker and merchant of this rapid transfer of capital are so manifest that it is unnecessary to enlarge upon them here. We would only-remark generally that while it has the undoubted effect of tending to equalise the value of money in the chief centres of commerce, the economy of capital effected cannot fail on the other hand to produce an increased competition in all the great markets of the world.

In former years the profits of the banks which were first engaged in the Eastern exchange business were very great, and handsome dividends were easily earned. Large reserves were also accumulated, but these were much diminished, and in some cases altogether extinguished by the disastrous crisis which succeeded the period of inflation of 1864-65; and although the number of banks was reduced by the suspension of some of those institutions which had been most active in encouraging the rampant speculation then rife, the banks which survived the storm found the amount of legitimate business- left to them limited in extent, and the struggle to obtain a fair share of this gave rise to a keen spirit of competition between them, which has continued up to the present time.

The uncertainty regarding the future value of silver, depending as it does upon the inscrutable action of the German and United States Governments, the unsettled policy of the India Council regarding the raising of loans and the issue of their drafts, are further difficulties which have arisen in the last few years to embarrass and perplex the Anglo-Indian banker. Notwithstanding these, it is satisfactory to observe that the banks have, with occasional exceptions, earned good dividends for their shareholders, and the respective managements may fairly be congratulated on the general success of their operations.