560 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
depreciation of the currency in terms of gold may be delayed. It is only to make foreign remittances that the demand for gold first makes itself felt, and it is there that specific depreciation primarily arises. But there again it need not, for everything depends upon whether other commodities equally good, which the foreigner would take as readily as gold, are forthcoming or not. Now, in the case of India all these three factors tending to postpone specific depreciation are more or less operative. The rupee is a full legal-tender currency and can effectively discharge debts without compelling resort to gold. The industrial demand for gold in a poor country like India cannot be very great.* Consequently, the generally depreciated rupee does not show immediate signs of depreciation in the internal trade of the country. As for foreign payments, the position of India is equally strong, not because, as is absurdly supposed, she has a favourable balance of trade, but because she has certain essential commodities which a foreigner is obliged to
- The following table regarding the consumption of gold in different countries is interesting:—
§ C ONSUMPTION OF G OLD ( MILLIONS OF POUNDS STERLING AT 85 S .
| PER | FINE O | OUNCE) | Col4 | Col5 | Col6 | Col7 |
|---|---|---|---|---|---|---|
| 1915 | 1916 | 1917 | 1918 | 1919 | 1920 | |
| Industrial Arts (Europe and America). India (year to March 31 following. China ... Egypt ... Balance available as money (difference). World ... | 17.0 1.4 —1.7 —0.8 80.5 96.4 | 18.0 5.1 2.6 —0.2 68.0 93.5 | 16.0 19.6 2.6 —0.1 48.2 86.3 | 17.0 —3.3 0.04 —0.0 64.9 79.0 | 22.0 27.7 11.5 —0.0 13.8 75.0 | 22.0 5.1 —3.7 ? 46.6 70.0 |
§ The figures are those of Mr. Joseph Kitchin in The Review of Economic Statistics, Preliminary volume 3, No. 8 for August, 1921, p. 257. If figures previous to 1914 are desired, see table ibid., p. 258).
Omitting the abnormal years of 1917 and 1919 and reducing the figures to per capita basis the consumption of gold by India must be said to be remarkably small. Besides, it is to be noted that figures for India include industrial as well as monetary consumption. Further, in making comparison account must be taken of the difference in the period taken as unit in the case of India and other countries. Of course in these days when gold is so very greatly depreciated in terms of commodities in general, neither is there any necessity to shed tears if its production were to fall off, nor can it be anything but a welcome event if its use were to be extended. It would therefore be unwise to resent an increase, if it were to take place, in the importation and use of gold by India. The greater the use of gold and the less the production of it, the better for the world as it is circumstanced to-day. Cf. in this connection the remarks of Prof. Cannan on Mr. Shirras’s Paper in the J.R.S.S. for July, 1920, pp. 623-24.