New Age History and Economics

The Day We See The Truth And Cease To Speak it, Is The Day We Begin To Die. MLK Jr.

Sunday, September 11, 2011

Increasing interest rates does not reduce/lower Inflation.-Emerging Economies.

                   THE FREEMEN

Lies being taught;

By increasing rate of interests, inflation is reduced
To reduce inflation, increase rate of interests.

Now the facts;

Increasing rates of interest is expected to reduce demand whereas in fact it reduces supply apart from increasing cost.
What causes Inflation; Traditional view as stated per advanced economies

When demand outstrips supply leading to higher prices as prices are a function of demand and supply.

Steps suggested by traditional economists to reduce Inflation;
Increase rate of interests; Increase in rates of interests will reduce demand as consumers (both individuals and firms) will be lured by high rate of interest on their savings, they will thus save more and spend less leading to moderation in demand and thus decrease in Inflation. It is also said that by increasing interest rates, makes it less attractive for people to borrow (to spend) which in turn curbs their spending habits leading to decrease in demand. Thereby leading to overall moderation of Inflation.

Kaps theory;

What causes Inflation; when supply is unable to meet Demand or costs of supply have increased leading to higher prices as prices are a function of Supply unable to met Demand plus costs of Production. 

According to me increase in rates of interests leads to decreased supply thereby leading to persistent or hyper inflation in economy as seen in India in last more than a year.
A)     Increase in rate of interests leads to overall increase in costs

i)       Cost of production;

Each and every business is dependent on debt for their production. Every increase in interest rates leads to increase in their costs of debt which they will have to pass on the consumer leading to inflation in economy. This is particularly true of emerging economies like India and china where large number of people live in slums and have meager expenses and no disposable income for savings. Rather we have to encourage people to have basic necessities of life including at least three  wholesome meals, education and health. There also must a constant up gradation of standard of living. For example; a person who has cycle must upgrade to scooter. Person on scooter must upgrade to car. Person on car must upgrade his car.

Some businesses may even be working on very low margins. Increase in cost of debt may lead to;
a)     Their declaring bankruptcies,
b)     Closure of factories,
c)     Increased unemployment,
d)     Increase in non productive assets.

ii)     Cost of supply; Increase in cost of debt will also lead to overall cost of product. Transporters run their business on debt. Similarly traders, middleman also buy on debt. Any increase in cost of debt will ultimately lead to rise in their costs which would have to be passed on the consumer.

Whereas in India Rate of Interests have been increased 12 times in last year, there is slowdown in industrial production leading to widening of gap in demand and supply.  At 4.1%, the Index of Industrial Production (IIP) is at its second-lowest level in the last 17 months. This only proves that increasing of Interest rates does not necessarily reduce gap in demand and supply but in emerging economies like India and china it may actually widen the gap in demand and supply leading to persistent or Hyper inflation as seen in India

Hence in large and emerging economies like India and China, increase in rate of interests will not necessarily lead to lower cost but is most likely lead to higher cost and lower supply, thus persistent or higher inflation.


Wednesday, September 7, 2011

Jind Family

This month is for fillers; 

                    THE FREEMEN

Dear Brethren,           

The Jind Family.- After the death of last Mughal Ruler Aurangzeb in 1707 there occurred an era of chaos and confusion. There remained no authority which could exercise control over vast areas. In Jind the Jats, Rajputs, Ranghars and Ahirs became disorderly and would not pay land revenue to their old masters or accept their authority. One Gajpat Singh, a great grandson of Phul, the founder of the Phulkian Misl, one of the 12 confederacies of the Sikhs in the 18th century took advantage of the above situation. He took part in the attack of the Sikhs on the province of Sir hind in 1763 in which Zain Khan, the Afghan governor of the province was killed. Gajpat Singh occupied a large tract of the country including Jind and Safidon as his share of the spoil. He made Jind his headquarters and built a large brick fort there-1.
In 1772, Emperor Shah Alam conferred upon Gajpat Singh the title of Raja. From this time onward, the Sikh chief ruled as an independent prince and coined money in his own name. The Delhi authority failed several times to bring him under its control. In 1774 a serious quarrel arose between Gajpat Singh and Hamir Singh, the then ruler of Nabha. Gajpat Singh used force and took possession of Amloh, Bhadson and Sangrur. By the intervention of the ruler or Patiala and other friends, the first two places were restored to Nabha, but Sangrur, then a village, was retained: Raja- Gajpat Singh's daughter, Bibi Raj Kaur married Sardar Mahan Singh Sukrachakia and became the mother of famous Maharaja Ranjit Singh. His strategic position in the northwestern corner of the Rohtak region made it easy for him to have his hold over some parts of Haryana-Gohana, Hisar, etc. which he and his successors held until the beginning of the last century-2

Raja Gajpat Singh died in 1786, and was succeeded by his son Bhag Singh. George Thomas, an Irish adventurer, gave Bhag Singh a very tough time. But he overcame this serious menace with the help of his brother chiefs of the cis-Satluj tract and the Marathas-3.

Bhag Singh was a shrewd man. He was the first of all the cis-Satluj princes to seek an alliance with the British. In 1803, he assisted Lord Lake in his war against the Marathas and received confirmation of the Gohana estate. He also prevented his nephew Maharaja Ranjit Singh from espousing, the cause of Jaswant Rao Holkar. The British recognised' in him a great friend and ally and showed him many marks of favour and regards-4.

Raja Bhag Singh, suffered a severe paralytic attack in March, 1813. Being Unfit to run the administration of his state, the ailing chief wished to appoint Prince Pratap Singh, the ablest and wisest of all his sons as his regent to do his work. But the British government to whom the anti-British bearing of the prince was known stood in his way and got Rani Sobrahi, appointed in place of the prince in 1814. This was unbearable for Pratap Singh and he raised the standard of revolt on June 23, 1814. Being a popular figure, the state forces also revolted and joined forces with him. With their help, the prince lost no time in occupying the Jind fort and establishing his government after putting the Rani, the puppet of the British government, to the sword.-5.

This alarmed the British authorities very much and the British Resident at Delhi sent his force with more deadly weapons against Pratap Singh. The prince thinking that he would not be able to give a fight to this force from the Jind fort, retired to a relatively stronger position at Balanwali, a fort in the wild country near Bhatinda. The British attacked him with full force (WMD) and after a fierce fighting for some time Pratap Singh had to leave this fort and take his position in the country on the other bank of the Satluj after crossing it at Makhowal. Here he was joined by Phula Singh Akali-6. Prince Pratap Singh remained with Phula Singh at Nandpur Mokhowal for two months and persuaded the latter to assist him actively at Balanwali. When the British came to know that Phula Singh had crossed the Satluj, they directed Patiala, Nabba and Malerkotla rulers to attack him. Prince Partap Singh went in advance and re-took the Balanwali fort. The Patiala troops marched to intercept Phula Singh who was unable to reach the fort and retired towards the Satluj. Nabha and Kaithal chiefs attacked Balanwali fort. Balanwali Surrendered and Pratap Singh was taken a prisoner and was placed under merely a nominal restraint. Pratap Singh fled to Labore. Maharaja Ranjit Singh refused a shelter to Pratap Singh and gave him up to the British who placed him in confinement Delhi where he died in 1816. -7

The administration of Jind was entrusted to Prince F'ateh Singh. Though Raja Bhag Singh did not like the arrangement, yet he did not oppose it. In fact, he had neither the will nor the means to do it. Bhag Singh died in 1819, and F'ateh Singh succeeded him. He ruled for a short time only and died three years later (1822). Now Sangat Singh, (11 years old) succeeded him. He hated the authority of the British which the latter noted with grave concern. But, before they could think of dealing with him, he died a sudden death on November 2, 1834. Annoyed as the British Government was with the deceased Raja, they forfeited a number of his estates in Ludhiana, Mudki, etc. (about 150 villages) and in the trans-Satluj region (Halwara, Talwandi, etc.). The latter estates were given to Ranjit Singh.-8

Since the deceased Raja left no male heir behind him, Sarup Singh, his cousin succeeded him. He was very friendly and loyal to the British, but not to his people, especially of Balanwali. They did not relish the change and organized themselves to oppose him. Gulab Singh Gill, formerly a Risaldar in Jind army and Dal Singh, brother-in-law of Prince Pratap Singh, were their leaders. The rebels got a good deal of inspiration from Mai SuI Rai, the widow of Prince Pratap Singh.

A British force was despatched against the rebels in early 1835. By March the ranks of the rebels had swelled a good deal. The people of the neighboring villages like Bhai Chakian, etc. and the Akalis of Gurusar, a place of pilgrimage had joined hands with them. The villagers fought well, but being inferior to their enemy in military knowledge, strategy and tactics, arms and ammunitions, they lost the day. Their casualties in the action were quite heavy, Gulab Singh being one of them. Dal Singh and Mai SuI Rai were apprehended and put behind the bars, along with their supporters. And thus ended a popular revolt after much bloodshed and cruelty on the part of the British government.

Raja Sarup Singh gave great help to the British government for his selfish motives. In 1857, immediately on learning of the outbreak, he conducted his troops to Karnal and undertook the defense of the city and cantonment. He then sent a detachment of his troops to north of Delhi, thus enabling the Meerut force to cross the Yamuna and join Sir H. Barnard's column. The Jind forces marched in advance of the British army recovering Satnalkha and Rai, securing the road and collecting supplies for the army. They were complimented on the field by the Commander-in-Chief, who sent one of the captured guns to the Raja as a present. In the assault of Delhi also the Jind troops took a prominent part. Resultantly Dadri and Kularan were made over to the Raja, privileges of full sovereignty were granted to him and his successors in perpetuity and honorary titles were conferred on him:

Raja Sarup Singh died in 1864. He was succeeded by his son Raghbir Singh. Immediately after his installation, Raghbir Singh was faced with a serious revolt of the peasantry in the newly acquired territory of Dadri.  In May, 1874, the poor exploited peasants of about 50 villages in this tract led by their local Chaudharis and Hakim Kasim Ali, rose en masse, captured police station, arrested Thanedar and proclaimed end of the Raja's rule. This was a big challenge to the Raja who immediately marched in person at the head of a big army. His first attack was on Charkhi (14 May), where 1,500 or 2,000 persons of 'the rebellious villages had collected and entrenched themselves They resisted the Raja to the last, but ultimately, they were defeated and their village was burnt. Next, Mankawas was attacked, captured and destroyed. However, the two defeats did not dishearten the brave villagers who gave a tough battle to the Raja at Jhauju (16 May). But here also they' shared the same fate and their defeat quelled the rebellion once for all. The Raja punished the leaders but permitted the Zamindars to return and rebuild their ruined villages.

The Raja also took side of the British government on the occasion of the Kuka outbreak in 1872. Again, when the second Afghan war broke out six years later, he gave help to British with men, conferred the title the money and material. The British government conferred the title of of Raja-i-Rajgan on Raghbir Singh.-9

Raghbir Singh died in 1887. His only son Balbir Singh had died during his own lifetime, and therefore, his grandson, Ranbir Singh, then only 8 years of age, succeeded him. During the period of his minority, a Council of Regency administered the state. During this regime, the state troops took part in the Tirah campaign of 1897. He was "invested with full ruling powers in November, 1899.-10

During the First World War, Jind maintained its loyal traditions by placing all the resources of his state at the disposal of the government. The Jind' Imperial Service Regiment was on active service for about 3 years in East Africa; state's war gifts amounted to over 24 lakh; while the total loan raised in the state amounted to 11 lakh.

The Praja Mandal Movement.-The Raja, as indicated above, was very loyal to the British but indifferent towards the prosperity of his subjects. Instead of looking after their welfare, he effected their economic exploitation. The poor and ignorant masses groaned under this exploitation by the Raja. In the first quarter of the twentieth century when winds of political awakening and enlightenment reached even the remotest corners of the country, the people of Jind were also affected. They became conscious of their pitiable conditions and began to ponder over as to how to get over their difficulties. The formation of All India State People's conference in 1927 and the Panjab States Riyasti Praja MandaI the following year showed them the way. They too, established the Jind State Praja MandaI. However, in the conditions which were then in vogue, no open membership drive of the MandaI was possible. Members were recruited secretly. Praja Mandals would appear to have been established at Narwana and other places in support of the national movement. The Sikh peasants joined the Praja MandaI movement and they launched the stir against the Raja. The 'agitators' as they were called then, led their main attack on the enhanced revenue rates, corruption, and high handedness of the Chief Minister of the state. Raja Ranbir Singh took a stiff attitude and the stir does not seem to have achieved any big success. But this did not dishearten the people; In the late thirties the Praja MandaI movement spread to almost all parts of the state. The branches of Praja MandaI were opened at Sangrur, Dadri, Jind and several big villages in the region.-11

The Praja Mandalist, waged a long stubborn struggle for the reduction of taxes, abolition of begar and popular representation in the government. Their efforts bore fruits, though belated, and the Raja accepted their demand for an elected assembly and formed a representative government on 18th January, 1947 with five ministers; two Praja Mandalists, two Akalis, and one Muslim. The Raja had power to veto any decision of his cabinet. This arrangement did not satisfy the people especially in the Dadri region, where they rose in revolt in February, 1947. They courted arrests in large number and formed a parallel government of their own. This compelled the Jind authorities to invite the president of the All India state People's conference for negotiations. On his advice the people withdrew the movement. The state authorities promised to look into their grievances and released all the Praja Mandalists who had been arrested."

When India got independence (August 15, 1947), a non-official poll was taken by the Jind state Praja Mandal in Jind and Dadri to ascertain the views of the people about their future whether they wanted to merge with Panjab or stood for a separate state. The majority of people voted for the former proposal. But the government merged the state with the newly-created state of Patiala and East Panjab States Union (PEPSU) on July 15, 1948. However, eight years later, with the dissolution of PEPSU State the area was transferred to Punjab.
Subsequently on November 1, 1966 the district comprising the tahsils of Jind, Narwana and Safidon passed on to Haryana . This continues as on date


1. For details see Journal of Haryana Studies, Vol. III (1971) No. 1 pp. 17-19; Bihari Lal Dhingra, Jind State : A Brief Historical and Administrative Sketch, p. 1.
2. Phulkian States (Patiala, Jind and Nabha) Gazetteer, 1904 p. 215.
3. Journal of Haryana Studies, Vol. IV (1972), pp. 16-21.
4. Beharl Lal Dhingra, Jind State: A brief Historical and Administrative Sketch, p. 2.
5, L. H. Griffin. The Rajas of the Punjab, London, 1873, pp. 313-14.
6. Ibid, pp. 314-18.
7, ibid pp. 319-20.
8. Ibid, pp. 343-44.
9. Phulkian States Gazetteer (Patiala, Jind and Nabha), 1904, p. 217.
10. Behari Lal Dhingra, Jind State: A Brief Historical and Administrative
11. K. C. Yadav, Haryana Mein Swatantrata Andolan Ka Jtihas 1975 (Hindi), pp. 175-76.


Thursday, September 1, 2011

History of Chandigarh Freemasons Hall, and Masonic Fraternity, Chandigarh.-II

Originally published Dated 1st April, 2009

Dear Brethren,          

History of Chandigarh Freemasons Hall, and Masonic Fraternity, Chandigarh-II.

Vide letter Dt 04.09.1957, W Bro Justice Shamsher Bahadur of District Grand Lodge of England & Wales applied for 4 kanals of land for construction of “Freemasons Hall”, Chandigarh. This request was forwarded by the estate officer to Government of Punjab and was accepted by the Government Punjab, Capital Project Chandigarh and approval was communicated to Estate Officer, Capital Project, Chandigarh vide memo no 14243-59 / IX / 1052 Dt 1st February 1960. Estate Officer communicated the allotment of plot for to Justice Shamsher Bahadur vide letter No 78 Dt 9-2-1960 as under;

“..request for allotment of 4 kanal of land for the construction of Freemasons Hall can be considered provided the Association agrees to pay the price at residential rates. If this is acceptable, kindly deposit a sum of Rs 1000.00 as earnest money so that Chief Architect and Chief Town Planner may be asked to suggest a suitable site measuring 4 Kanal. “
The allotment at residential rates were not acceptable. Representations were made to Governor & Chief Minister Punjab on the basis that plot of land was required for use of freemasons which are a ‘charitable’ and religious society. Accordingly an undertaking was sought that land will be used for freemasons Lodge. The final allotment letter No 3505 Dt 10.4.1970 issued by Estate Officer was issued in favor of “Freemasons Lodge” for the purpose of “Lodge Building”. It reads:-
Reference your letter No Nil, Dt 11.3.1970. A site measuring approx 2000 sq yards in sector 18-B is hereby allotted to “Secretary Freemasons Lodge For the purpose of Lodge Building i.e. Free masons Hall” at the following rate i.e. Rs 6 per sq yards for 1st acre and subsequently @ Rs 4 per sq yards.
3.     The building constructed thereon shall be dedicated to LODGE PURPOSE and shall not remain sole property of the donor or to be converted by them later to any personal use.”
(As against the residential rate of Rs 36/- per sq yard. Land was allotted by Admn under Religious /cultural category at concessional rate of Rs 6/- per square yard.)

1.     Last extensive renovation of building was done by KD Aggarwal in October 2005 at his personal cost of more than Rs 70,000/- at that time.

A.     During the tenure of the then Chief Justice WB A B Saharya, a false attempt was made to for conveyance deed & the society registration. Membership was kept at Rs 5,000/-. (Rs 3000 for senior freemasons). There were more than 200 active members under GLI and another 200 under Grand Lodge of England & Wales. Sh CPS Sahni collected the fee @ Rs 5000 / 3000. According to him more than 80 persons had become members and had paid him total sum of more than Rs 3,60,000/-. No separate bank account was opened. After collecting money the matter was closed. Now there are only about 40 active freemasons under GLI many from Simla & 100 under GLEW.

B.     CPS Sahni & V K Rampal got Rs 100,000/- from GLI in name of Masonic vocational training centre. Computers were called on rent for a day and by the morning after encashment of cheque all trace of Masonic vocational training centre had vanished. Only a plate exists which says about Masonic Vocational training center. Charity begins at home, it can only be assumed that on both the occasions CPS Sahni & V K Rampal had used Masonic funds on their wives.

2.     After election of Justice Davinder Gupta as GMI, a formal get together was arranged at Chandigarh on 21.1.06. As WM of lodge 283, KD Aggarwal was told to pay for dinner which will be contributory on behalf of all Lodges. More than 100 freemasons got together from New Delhi, Yamuna Nagar, Ludhiana, Ambala, Simla etc. KD Aggarwal settled the Bill of Rs 28,000/- out of own pocket. Only Chandigarh lodge (Rs 2000), Kalka Lodge Rs 3000/-, contributed. Inspite of being WM, It was with difficulty that KD Aggarwal could get a cheque of Rs 5000 from lodge 283 from V K Rampal. There is still huge shortfall for dinner of Rs 18,000/-. V K Rampal alone used to operate Bank A/C of Lodge 283-Mountshivalik maintained at Pb State Co-op Bank sector 20, A/C No 20272 from 1991 to January 2008 and would never give any accounts. KD Aggarwal was only secretary who published lodge accounts in monthly lodge summons.

3.     Time & again money was collected in name of conveyance deed and pocketed. KD Aggarwal loaned his own funds to Freemasons at Chandigarh for conveyance Deed (Rs 150000) and registration of Society and framing of bye laws (Rs 25000). The conveyance was registered on 7.11.2007 & Certificate of Registration of Society was received on 14.11.2007. Author had arranged the meeting Dt 25.8.2007 with RGMNI, Past RGMNI, Secretary RGLNI for the formation of Fraternity. Prior to said meeting KD Aggarwal constantly received calls from S Krishnan RGMNI regarding the afore said meetings. Considering that most of the present day freemasons are poor and themselves in most need for charity, Life membership fee was kept nominally at Rs 250 per member per lodge. In all only about 40-50 were able to pay this amount. The amount was deposited in the separate bank account No 398902011022865 with Union Bank of India, Sector 21C Chandigarh. R K Banta, Satish John and S P Bedi are the authorised signatories to operate said bank account. KD Aggarwal is not authorised signatory to bank account. Whenever there was not enough money to pay electricity & water charges or property tax then, KD Aggarwal would pay from his pocket / personal account.

C.     In 2009-10 again, CPS Sahni and VK Rampal have received substantial amount from GLI name of society. We know where it will go.
D.     VK Rampal is treasurer of lodge 61 but never paid dues of GMLI or RGMLNI. When its members were asked to pay dues they stated that VK Rampal gave them option of either paying Rs 600 as lodge dues or giving their vote to him. They opted for later. KD Aggarwal as WMM regularly paid dues of GMLI and RGMLNI and they are paid Dec 2007 to June 2009.

E.     Masonic Polyclinic is paying Rs 100 per hour to Subash for working as water boy. Whereas Dr V K Rampal is paying Rs 9 per hour to his compounder in exchange of giving him freemasons Hall as rent free, water & electricity free to his staff.

F.      Dr. VK Rampal had purchased a disputed house @ half the market rate. In lower court, DRT, & at Simla High Court he enjoyed free services from ‘brotherhood’ thus deriving pecuniary benefit of Freemasonry.

G.     Brethren are aware of sale of Freemasons Hall, Kasuali which was paid by District Grand Lodge of England & Wales. One of the brethren involved therein was then AGM of India. He took away the original file including the original Conveyance Deed on the pretext of meeting with Advisor who was stated to be his class fellow. He never met the advisor and also did not return the file.

H.     On 27.4.08, KD Aggarwal convened meeting of biggest Lodge at Chandigarh for the purpose of collective renovation of building. Brethren present therein stated that Ashwani Gupta never asked them for Building renovation but gave their wives gifts, free food/dinner. Whereas in exchange of Rs 250 I have not given their wives any gift or food/Dinners.  Dr. VK Rampal said that laws of law should be amended & Chairman should give free food to wives in exchange for votes.

Members of Grand Lodge of England and wales were not allowed into Fraternity though they were as much freemasons of Chandigarh as anyone else. In 2008-09, KD Aggarwal realized that Freemasonry in general and Chandigarh Freemasonry in particular is not charitable but an organization where greed for power and money overrides humanitarian considerations. KD Aggarwal resigned from lodge 283 in May ‘08 and from Chairmanship of Freemasons Fraternity Chandigarh and all remaining lodges from November 1st 2009.