The expected Famine Loan was issued on Thursday. It is
for three millions sterling, and is to be redeemable in seven years. If the cost of the famine is to be defrayed by India alone, the sum would appear far too small. A larger amount, however, might derange the Money Market just when the quarterly pay- ments are falling duo ; and doubtless, three millions are enough for the moment. In the meantime, it will possibly become clear whether a grant in aid is necessary. In any case, it is desirable to raise no more money here than is absolutely indispensable. Every addition to the debt held in this country increases the remittances which India has to send hither, and thus aggravates one of the chief causes of that fall in the price of silver which for the past few years has so injuriously affected Indian finance. It is prudent, therefore, to borrow no more now than is strictly required. It will be noticed that the loan is for a very short period. It may be hoped that the condition of India will improve within the coming seven years, and that the readiness of Indian capitalists to invest in the Indian funds will increase. If so, it raay be possible to raise in India itself a loan to pay off the amount now borrowed. The drawback, however, is that the Shortness of the period for which the loan runs makes it less acceptable to investors.
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