The Morning Post of Wednesday and Thursday contained full discussions
of the two questions connected with Indian finance which were raised by Mr. Rupert Gwynne in the House of Commons on Tuesday. The first of these is con- cerned with the cash balances and gold standard reserve of the Government of India. Mr. Harold Baker, who answered the questions in Mr. Montagu's absence in India, said that at present nearly nine millions sterling of the cash balances are on loan to various approved borrowers and banks in London ; of the gold standard reserve, nearly sixteen millions are invested in securities here and over a million is on loan at short notice. In reply to a supplementary question, Mr. Baker said that he had not any information as to the names of the firms which had the use of these sums, but that he would obtain them. As Mr. Touche, M.P., explained in an interview in Thursday's Morning Post, Indian merchants have a long-standing grievance against the transference to London of these very large sums of money, for no very obvious purpose except the advantage of the London firms concerned. We are glad, however, that the Government has expressed its intention of announcing the names of those who benefit by the arrangement.
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