But Mr Ritchie, the chancellor of the exchequer, having a surplus in prospect and taxation to take off, carried the cabinet in favour of again remitting this tax on corn.
In 1905-1906 the society had about 5800 auxiliaries, branches and associations in England and Wales, and more than 2000 auxiliaries abroad, mainly in the British Colonies, many of which undertake vigorous local work, besides remitting contributions to London.
This great shrinkage in exchange caused considerable loss to the Indian government in remitting to Europe, and entailed hardship upon Anglo-Indians who received pensions or other payments in rupees, while on the other hand it supplied an artificial stimulus to the export trade by increasing the purchasing power of gold.
The chief business of the native sarrafs (money-changers, bankers; &c.) is to discount bills at high rates, hardly ever less than 12%, and remit money from place to place in Persia for a commission amounting to from I to 5, or even 6% on each transaction; and in spite of the European banks giving lower rates of discount and remitting money at par, the majority of the people and mercantile classes still deal with the natives.
On the other hand, if the estimated revenue shows a large surplus over the estimated expenditure, there is room for remitting or reducing some tax or taxes, and the extent of this relief is generally limited to the amount of surplus realized in the previous year.