And the longer it is maintained the more involved will become the financial position of the Government and the greater will be the economic distress among the people. [...] (14) Such a slender backing will shake the confidence of the public in the currency of the country ; such a slender backing will cause nervousness in the international financial circles in the integrity and stability of the Indian curency. [...] In the makeshifts and patch-ups that the Government might make in this situation it may well happen that all our gold reserves will be almost exhausted but in spite of this the cash position would not have been adjusted properly : that in the process the confidence of the public in India and abroad in the solvency of the Government in the integrity of the Indian currency and the stability of e [...] Of the readiness of the Government to maintain the ratio there need be no doubt but the analysis of the financial position which I havegiven would show that there is certainly room and cause for doubt in the ability of the Goverment to maintain the exchange. [...] The Finance Secretary Sir has I am afraid in replying to the debate not made any statement as to the resources of the Government of India to meet the present situation has not taken the public into confidence to assure the market that the Government has got the resources.
- Pages
- 29
- Published in
- India
- SARF Document ID
- sarf.100003