3 SEPTEMBER 1921, Page 2

The Indian Government amazed the public a few weeks ago

by abandoning the criminal proceedings taken against two merchants, Kernani and Banerjee, on a charge of defrauding the Munitions Board. The prosecuting counsel stated that the Government had a strong case but that, if the accused were convicted, the commercial enterprises in which they were engaged might suffer. The suggestion that justice must not pursue its course for fear of the financial consequences seemed incredible. It now appears that Sir Thomas Holland, the Member for Commerce in the Governor-General's Council, - acted en his own responsibility in ordering the prosecution to -be dropped, and that the Government disapproved of his action. Sir Thomas Holland has resigned. He could do no less. But the Indian Government as a whole eannot escape the blame for -a most grievous error.