chapter  l
16 Pages


India is in a state of transition. Her national life is still lacking in certain vital elements of progress and efficiency. The political struggle has just begun. The first step in the direction of establishing a national and democratic State has already been taken. With the progress of events the situation becomes more and more complex, and often baffling. The future is a matter for speculation. That she has to pass through a vicissitude of political fortunes may be accepted as the cardinal fact of her present situation. The end is neither predictable nor in sight. She will, in the course of her political evolution, work out her own financial system, which, on account of the exigencies of the struggle and peculiarities of her national life, will have its own distinctive features. But it is very unlikely that the future developments will involve a complete breach with the present system. It will be changed under the stress of new forces, and changed in some essential respects. But it is difficult to conceive the possibility of the present system not having very important effect on making the financial organization what it will become in course of time. It is, on that account, a matter of profound importance for the politician, who is working with an eye to the future, to understand the present financial system, and acquire a thorough grasp of its basic features. The time will come, if it has not come already, when India will claim and get the right to determine her own political system in her own way. An intimate knowledge of the financial system will then be a great asset for our constitution makers, for India, like every other country, must have a sound financial system, organically connected with the rest of her national life. The present system has, from this point of view, to be thoroughly understood with its merits and shortcomings, and incorporated in the new system for expressing the national will, and making it flexible enough to secure the continuity of national growth.