The Insurance & Finance Review. December 1930

(b) The golsupply theory of Professor Gustav Cassel who believes that the real cause of the present depression is the fall in general level of prices _due to a decrease in the production of gold and consequent scarcity in the supply of currency. [...] The Indian Chamber of Commerce drew the attention of the Hon'ble Commerce Member and of the public to the phenomenal rise in the import of Australian wheat which is increasingly proving a formidable competitor to indigenous produce. [...] It is not only the total of Treasury Bills borrowings that deserves our adverse criticism --the high rate of interest offered the consequent lowering of the credit of the Government of India the increased cost on this account to the tax-payer and the competition which these Treasury Bills operations offers in regard to the deposits which should otherwise be available in part to Indian banks - [...] In the case of these commodities it should be emphasised that the prices taken into consideration in the 'compilation of the index numbers of the Department of Commecial Intelligence are the wholesale prices prevalent in Calcutta. [...] of the total export trade of India and the production of which is an absolute monopoly of India the price realised by the producers to day is not even half of the actual cost of production.