Page:Indian Journal of Economics Volume 2.djvu/531

 MODERN MERCANTILiSM IN INDIA tot the general as against the particular Balance of Trade) were officials of. the East India Company-who wished to bring gold desires gold.. Nothing writings on currency and an out  and ot gold to is finance India. And India still so insisen in all he as the demand for as if no amount o! food and machinery would secure, the country's wealth without gold ready o be excJanged for it. It is stated that gold is loved, admired, and respected. That the flow of. gold checked. And if this is that it would all be hoarded in India, is denied. class they from England is unfairly justified on the ground some twenty millions of pounds .in gold each year, even after paying the home carges. They then swing clear around and begin to exclaim how useless this gold is, to demand stopped, and so forth. for a gold currency. Yo, here might at first in the Mercantilist position (with regard to gold) for which they are seldom given credit, probably because they themselves did not realize them. The first is that gold is a continuous power, which is always economic uncertainty. by continuous wars in drought wanted a attack or and disease war-chest of defence were unfailing fund ot purchasing necessary in conditions of And the uncertainty caused Europe has been caused by. in India. The Mercantilists gold, without which sudden impossible; their Indian followers ask for the Gold Standard Reserve, which is to be called upon for the financing o! the attack is more appear. that the export of food be But they still go on asking justice in this position than There are two great truths there is a great annual "drain" of gold from India. They are amazed o discover that India receives then hoarding When students first enter the economics are generally under the impression that