z:\ ambedkar\vol-02\vol2-09.indd MK SJ+DK 21-9-2013 694
694 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
Autonomy in practice if the Province is not to be free to devise its own method and system of taxation and has to go to the Centre every time ?
Sir Edward Benthall : Not every time, but in the case of these particular taxes which are likely to result in the stoppage of development of Indian commerce. May I just say this, that our intention in bringing forward these points was not to lay down any rules but to bring them to the notice of the Joint Select Committee, so that they might consider them.
- Dr. B. R. Ambedkar : Then I will put this generally : That you would recognise that in devising any system of finance as between the Centre and the Provinces, it is necessary to recognise that whatever system is adopted, it will not be incompatible with Provincial Autonomy and responsible Government, in the Provinces ?
Sir Edward Benthall : Yes. In answer to a previous question, I said there should not be more concurrent powers than are necessary, and we agree to that. The division of subjects and of taxation should be as clear-cut as possible, but, from the point of view of trade, we desire to point out how these provisions might lead to inter-Provincial Customs barriers.
- Dr. B. R. Ambedkar : Now I want to ask you a question about this Reserve Bank, referred to in paragraph 3. You say that the bank ought to be free from political interference ?
Sir Edward Benthall : Yes.
- Dr. B. R. Ambedkar : I suppose you will agree that political aid would be necessary for the bank in times of crisis ?
Sir Edward Benthall : It might be.
- Dr. B. R. Ambedkar : It might be necessary in a crisis, in order to support the bank to have the Government declare a moratorium ?
Sir Edward Benthall : Yes, it is customary I think, in the constitutions of all Reserve Banks to allow them ultimate power of intervention by the Government in case of a financial crisis, and I would not object to that in a Reserve Bank.
- Dr. B. R. Ambedkar : You would, therefore, permit, if the Government is to aid the bank in times of crisis, either by way of a moratorium or by way of advancing money in order to stabilise its reserves so that it could carry on, that it should have some influence over the bank, and its operations ?
Sir Edward Benthall : The Government, in some form of other, will appoint some of the officers of the bank and some of the Directors, but the Government should not appoint a majority of such Directors.
- Dr. B. R. Ambedkar. I want to make this point clear. I make this distinction : Political intervention, interference and influence. What is it that you would allow the Government to have and what is it you would exclude the Government from ?
Sir Edward Benthall : To define that would mean drawing up the constitution of the Reserve Bank.