The Eastern Economist August 31 1951

THE EASTtRN ECONOMIST 331 The Symbol of the Congress Crisis WITH the approach of the coming session of the AlIndia Congress Committee on September 8 the character of the Congress crisis seems to be emerging in somewhat clearer outlines. [...] The cumulative effect of restricting the right of entry into the export business of correcting the neglect of the internal market for piecegoods and of the official belief that the loss of dollar markets for our jute goods is not of much cosequence—since the soft currency demand from everwhere continues to be steady--was found to be reflected in the trade figures and it would have been su [...] The Report of the Board of Directors of the Reserve Bank cf India issued this week reveals the gratifying information that sales of sterling to the Reserve Bank of India in February and March this year were of the order of £99 and £69 millions against a normal" demand of £15 to £20 millions in 1950 thus reflecting the hardness cf the Indian rupee. [...] Though it would be an unpopular theme with the rubber planters the cautious policy of the Government'in the matter of raising statutory prices in the face of the demand for higher prices might prfove a blessing in disguise in view of the advautage of the maintenance of lower costs whim was thus compelled on the producers. [...] If the politicians of Baghdad have the wisdom to support the ratification of the treaty Iraq may become the key to the maintenance of stability in the Middle East.