18%

convenient to the public to be able to invest their
surplus wealth in government securities, the government
 utilizing the money and paying low interest
upon it, while there is no better sign of public confidence
 in a government, than in the power of the latter
to raise money at reasonable rates ; and, again, it adds
to the security of the government, inasmuch as all
those holding its paper are interested in its stability.
The public debt of India is already very high, but is
nothing in comparison with the resources of the
country, or with the rates of progress in railways,
canals, and public works, which has prevailed during
the short period of British rule.
The public debt of India amounts in all to about
250 millions sterling, including 98 millions outlay on
guaranteed railways. The annual charges on account
of it represent 13 millions ; the income from productive
works, in which much of it is invested, is about 8
millions ; and the net charge 5 millions.
The national debt proper* (excluding guaranteed
railways) was ‘1514 millions sterling in March 1880:
of this, 37 millions had been spent on remunerative
public works, which already partially, and will, eventually,
 entirely repay the interest on outlay. The real debt
is thus 114 millions on account of wars and famines,
and this represents less than three years’ income.
The rate of interest, allowed has been gradually
reduced from 5 to 4 per cent.

* India in 1880, p. 461