Before coming to the point a bit of history would help understand the circumstances that led to it.
India was once a rich country, it was called ‘Sone Ki Chidiya‘ (Bird of Gold) in the ancient world and it was this reputation that attracted both travelers and invaders.
That was before the East India Company was granted the Charter to trade with India. Below is an account of what followed after that.
1600 – The East India Company was granted the Charter to trade with India
1608 – During this time ships belonging to the company arriving in India docked at Surat, which was established as a trade transit point.
In the next two years, the Company built its first factory in south India in the town of Machilipatnam on the Coromandel Coast of the Bay of Bengal.
1750 – The East India Company started cultivating Opium in Bengal and Bihar to finance its own private army of almost 2 lakh soldiers. The destruction of food crops in Bengal to make way for opium poppy cultivation for export reduced food availability and contributed to the famine resulting in deaths of 10 million people.
1757 – Opium traders after hatching a conspiracy with Siraj-ud-Daulah, Yar Lutuf Khan, Jagat Seths (Mahtab Chand and Swarup Chand), Omichund and Rai Durlabh took over India after The Battle of Plassey establishing company rule in South Asia.
* Jagat Seth, Umichand and Dwarkanath Tagore (Rabindranath Tagore’s grandfather) were known as the ‘Rothschild of Bengal’ (Dwarkanath Tagore, Drug Lord of India deserves one full post)
1780 – It was Warren Hastings, the first Governor General of India’s , idea to first traffic drugs to China.
Through 1790 – East India Company established a monopoly on Opium trade – and poppy growers in Indian could sell only to the East India Company. Thousands of Bengali , Bihari and Malva Indian farmers were forced to grow Opium.
At the same time, there was commercial stagnation and trade depression throughout Europe. The directors of the company attempted to avert bankruptcy by appealing to Parliament for financial help. This led to the passing of the Tea Act. The arrival of tax-exempt Company tea, undercutting the local merchants, triggered the Boston Tea Party in the Province of Massachusetts Bay, one of the major events leading up to the American Revolution.
Britain could no longer afford to buy tea from China in exchange for Silver. Opium was the free and easy option.
By the 19th century – British Queen Victoria was the biggest drug trafficker. Even Queen Victoria used Opium ( Laudanum ), and records exist in the Royal Apothecary at Balmoral, as to how many times Opium was passed on to the royal palace. A lot of British noblemen were Opium eaters.
Now coming to the real question…
But first we need to understand who owned this East India Company.
Also, everyone knows how much gold and gems were looted from India by the East India Company…
…but let’s pause for a moment and ask another question; Whatever happened to all that gold ?
Well, to this day it lies in the basement of the Bank of England, which indirectly is the basis for the establishment of almost all of the banking institutions of India and also many around the world.
1708 – Moses Montefiore and Nathan Mayer Rothschild loaned the British Treasury £3,200,000 (used to service the debt owed the privately operated Bank of England operated by Nathan Mayer Rothschild), in return for an exclusive grant of trading privileges with all countries of the Indian and Pacific Oceans, between Cape Horn and Cape Good Hope for the newly chartered joint stock corporation which Rothschild controlled – the British East India Company. They always operate through joint stock corporations in order to conceal their ownership and avoid personal responsibility.
Excrept from ‘The Romance of the Rothschilds‘ by IGNATIUS BALLA (Page 79)
” When I settled in London,” Nathan Rothschild continued, ” the East India Company had eight hundred thousand pounds’ worth of gold to sell.
I went to the sale and bought it all. I knew the Duke of Wellington must have it; I had bought a great many of his bills at a discount.
The Government sent for me and said that they must have it. When they had got it, they did not know how to get it to Portugal.
I undertook all that, and sent it through France. It was the best business that I have ever done.”
1844 – The Bank Charter Act was passed under the government of Robert Peel, which restricted the powers of British banks and gave exclusive note-issuing powers to the central Bank of England.
This meant that the Rothschilds were able to control more, because all the banks were now forced to use Bank of England notes, instead of their own.
George Warde Norman was a Director of the Bank of England from 1821 to 1872, a key figure behind the Bank Charter Act of 1844. His vision was of increased human happiness through a wholesale reform of the revenue system founded upon direct taxation in the form of a comprehensive property tax.
1851/1853 – Later The Chartered Bank of India, Australia and China was founded in London by Scotsman James Wilson following the grant of a Royal Charter from Queen Victoria.
The bank’s business dealt specifically with large volume discounting and re-discounting of opium and cotton bills. Although opium cultivation gradually increased in China, opium imports still increased from 50,087 picul in 1863 to 82,61 picul in 1888.
Transactions in the opium trade generated substantial profits for Chartered bank.
The same year (1853) The Mercantile Bank of India, London and China was established in Bombay by the Parsis who were the middle men (drug runners) (will be addressed in the next post) for the East India Company.
Later, the Bank also became one of the principal foreign banknote issuing institutions in Shanghai; which we know today as the HSBC Bank.
Chartered Bank merged with the Standard Bank in 1969, and the combined bank became the Standard Chartered Bank.
That same year the Government of India nationalized Allahabad Bank.
State Bank of India
The SBI’s origins lay in Calcutta – the then capital of British India – when it was born as the Bank of Calcutta on June 2, 1806, mainly to fund General Wellesley’s wars against Tipu Sultan and the Marathas. It was renamed Bank of Bengal on January 2, 1809. Similar joint stock banks, the Bank of Bombay and Bank of Madras, came up in 1840 and 1843, respectively.
Gradually, the Bank of Bombay and Bank of Madras came up in 1840 and 1843, respectively. In 1921, these banks with their 70 branches were merged to form the Imperial Bank of India. After Independence, several state-owned banks were merged with the Imperial Bank of India to form the State Bank of India in 1955. It is still known as State Bank of India.
1859 – James Wilson (founder of The Chartered Bank of India, Australia and China)was sent to India to establish the tax structure, a new paper currency and remodel the finance system of India after the revolt of 1857.
He is known as the forefather of the Indian Tax structure.
RESERVE BANK OF INDIA
Reserve Bank of India (RBI) came into picture according to the guidelines laid down by Dr Ambedkar. RBI was conceptualized as per the guidelines, working style and outlook presented by Dr Ambedkar in front of the Hilton Young Commission. When this commission came to India under the name of “Royal Commission on Indian Currency & Finance”, each and every member of this commission were holding Dr Ambedkar’s book named “The Problem of the Rupee – It’s origin and it’s solution.”
An excerpt from – The Problem of the Rupee – It’s origin and it’s solution by Dr. Babasaheb Ambedkar.
(CHAPTER V – FROM A GOLD STANDARD TO A GOLD EXCHANGE STANDARD)
“When the standard of value is standard metallic money the expansion cannot be very great, for the cost of production acts as a sufficient limiting influence. When a standard of value is a convertible paper money the provisions as to reserve act as a check on its expansion. But when a standard of value consists of a money the value of which is greater than its cost and is inconvertible, the currency must be said to be fraught with the fatal facility of indefinite expansion, which is another name for depreciation or rise of prices. It cannot, therefore, be said that the Bank Charter Act made no improvement on the Bank Restriction Act. indeed, it was a great improvement, for it substituted a currency less liable to expansion in place of a currency far more liable to expansion. Now the rupee is a debased coin, inconvertible, and is unlimited legal tender. As such, it belongs to that order of money which has inherent in it the potentiality of indefinite expansion, i.e. depreciation and rise of prices. As a safeguard against this the better plan was no doubt the one originally designed, namely of putting a limit on the issue of rupees, so as to make the Indian currency system analogous to the English system governed by the Bank Charter Act of 1844.
If there is any force in the line of reasoning adopted above, then it is not easy to agree with the opinion entertained by the Chamberlain Commission of the Exchange Standard. Indeed, it raises a query whether for all that the Commission said there is not somewhere some weakness in the system likely to bring about its breakdown. It therefore becomes incumbent to examine the foundations of that standard from a fresh point of view.”
Did Dr. Ambedkar get it ???
Drug trafficking and the gold looted from India, Portugal, Brazil, China, Burma and other countries laid the foundations of the modern Monetary System.
But has it stopped yet?
Read this recent report by Tahelka :
Globalisation is not a universal and secular creed…
It’s just a hangover from the Colonial Era.
In its day, the company occupied and manipulated the interstices of a truly global economy. Tea from China was bought with opium from India; Indian and later British textiles (made from cotton grown in India) purchased slaves in west Africa, who were sold in the Americas for gold and silver, which was invested in England, where the sugar harvested by the slaves ensured a booming market for the tea from China. The big winners sat in the City of London. The more numerous losers could be found in every corner of the globe.
– Mike Marqusee
I would like to end this post with a quote recently made by Julian Assagne :
“Wherever in the world any type of corruption starts,
it ends in London.”
– Report by Shelley Kasli