India is now feeling the pinch of bad trade, aggravated
by the revolutionary agitation which Mr. Gandhi is still permitted .to carry on. The new Indian Budget shows a deficit of $.21,000,000, to be covered by loans, although taxation is increased by £33,000,000. The normal import duty is increased to 15 per cent. of the value of the goods, much to the annoyance of Lancashire, and the corresponding Excise on textiles to 74 per cent. The Legislative Assembly has raised an outcry against the military expenditure, which is admittedly high although, .as Lord Rawlinson told them plainly on Tuesday, it cannot be safely reduced. India, without the British Army, would speedily lapse into anarchy, and, as the Moplah revolt showed, the Hindus would be the first to suffer. The Viceroy can enforce the Budget, with or without the approval of the Assembly, but it is just as well that the native members should be made to realize India's financial straits.