All classes of Anglo-Indians, and most of the educated natives,
are furious at the decision of the Secretary of State to exempt Lancashire cottons from the new 5 per cent. duty on all untaxed imports. They even call upon the Legislative Council to reject the Bill, and thus compel the Government to provide by other means against the risk of bankruptcy. There can be no question that the decision involves gross in- justice to all other English exporters, and that it is an inter- ference with India, which would never be attempted with Canada or Australia. It is argued, in defence of the exemption, that Indians are already protected by the fall in the rupee, which enables them to pay wages in cheap silver, and receive payment for their goods in dear gold ; but that is not true. The native manufacturers sell their cottons in India and China, both silver-using countries, and are paid in rupees or dollars. There is, in fact, no defence for the exemption, except the necessity of securing Lancashire votes, and the Indians are not likely to accept that. They will consider that India is deliberately sold for votes, and hate democracy even more than they do now.