Turning points in 20th century history

Posted in Business, Current Affairs, European History, Gold Reserves, History, India, politics by Anuraag Sanghi on November 19, 2010
A poster advertising life of the "Abonos Nitrato de Chile" (Fertilizer Nitrate of Chile), 1930.

A poster advertising life of the "Abonos Nitrato de Chile" (Fertilizer Nitrate of Chile), 1930.

Gunpowder monopoly ends

Towards the end of 19th century, newly discovered nitrate deposits (sodium nitrate) in the Atacama desert of Chile came onto world markets. Chile’s nitrates were a crucial intermediate for gunpowder.

Chile’s nitrates broke the British monopoly over the trade in Indian saltpetre for the first time in modern history. French domestic production of saltpetre, barely enough for their own needs, could not challenge Indian saltpetre output that the British monopolized.

Indian saltpetre (potassium nitrate) could be simply refined and used directly in gunpowder – unlike Chilean nitrates. Also Chilean nitrates were limited natural deposits, whereas Indian saltpetre was produced on an industrial scale, accounting for some 70% of global production.

Germans quickly secured supplies of Chilean nitrates. A few years into the WWI, Germans brought the Haber-Bosch process from the laboratory stage to industrial production. The Haber-Bosch process for production of ammonia, gave Germans industrial capacity to produce gunpowder.

Causes for WW1

With this industrial capacity for gunpowder in place, Germany and Turkey, both non-colonial, industrialized powers challenged colonial powers, Britain and France, for access to world markets.

Diagram showing the world nitrogen quantities ...

Image via Wikipedia

The breakup of the Islamic Turkish Ottoman Empire was long seen (1890-1920) as an outcome essential for continued Anglo-French hegemony.

Funding WWI

Against Britain and France, the then dominant world powers, with extensive colonies, were Germany, the Austro-Hungarian Empire and the Ottoman Empire out of Turkey. Once WWI started, US funded both Britain and France. The US plied the Anglo-French alliance with extensive supplies and credit.

Emergence of USA

While millions died in European trenches, the USA bided its time. With mud, blood and disease taking a heavy toll, Britain, France, Germany, Turkey and Russia were soon exhausted and prostrate into a stalemate by the end of 1916. As the fate of WWI hung in balance, USA finally joined the Anglo-French side to gain a share of spoils.

 A soldier evacuated from the battlefront on a stretcher during WW1 - Image courtesy - bbc.co.uk. Click for larger image.

A soldier evacuated from the battlefront on a stretcher during WW1 - Image courtesy - bbc.co.uk. Click for larger image.

Financially unaffected, industrially strong, militarily effective, the US emerged on the world stage.


Soon after WWI, as Anglo-French colonies and markets started opening up, US products gained new customers. Indians started buying Chevrolets, Buicks, Packards in small numbers. Victrolas started playing music in India – and on India. Michelin’s radial tyres from France became a byword in India for long-life. Indian natural rubber started going to Italy’s Pirelli and France’s Michelin.

Impoverishment of India

But Britain, a victorious nation was deep in debt – to USA and Colonial India. US emerged as the largest creditor nation. To settle these wartime debts, debtor Britain and creditor USA worked out a debt-repayment ‘mechanism’. Nothing but financial jugglery, this mechanism slashed the amount due to Colonial India and actually transferred the debt-burden of WW1 onto the backs of Indian peasant.

To settle this debt, Britain took recourse to gold from India. To give impetus to this transaction US supplied Britain with silver – then in abundant supply, in the form of US silver currency coins. This silver was ‘sold’ to Britain at double the market price – under the guise of the Pittman Act. Britain paid its wartime debt to India with this silver – at this inflated Pittman Act price. Abundant silver coins were stuck by the Colonial Raj, which are still available across India in large quantities.

To settle loans taken from USA to fight WW1, Britain extracted scarce gold from India. While payments for Indian exports were made in overpriced silver, the Indian peasant was forced to pay for imports and taxes in under-priced gold.

Starving Indian woman with swollen ankles & feet because she suffers from dropsy as young daughter stands by with swollen belly from hunger during famine crisis. (Photographer - Margaret Bourke-White; Date taken-1946; picture courtesy - life.com). Click for larger image.

Starving Indian woman with swollen ankles & feet because she suffers from dropsy as young daughter stands by with swollen belly from hunger during famine crisis. (Photographer - Margaret Bourke-White; Date taken-1946; picture courtesy - life.com). Click for larger image.

Due to this overpriced silver-under-priced gold combination, a surge in gold outflows started from India. Soon the US banking system was flush with liquidity.

Great Depression

Expecting the closed markets of Anglo-French colonies to open up, US economy expanded trade relations and industrial capacity. This expansion in trade and production of industrial goods was funded partly on the back of inflows of gold from India through Britain.

Finally though, protective barriers did not come down substantially enough – creating industrial over-capacity and excess liquidity in USA. Seeing ‘irresponsible’ bankers, waste ‘hard-earned’ gold on ill-planned trade expansion and production capacities, the US Federal Reserve clamped down on liquidity.

Great Depression followed. To ‘save’ gold-reserves, Roosevelt went further and nationalized gold.

Crime in the 20th century

In turn, Roosevelt’s gold nationalization, sparked a global crime tsunami. Only after the easing of restrictions on gold ownership by 1990, did the crime tsunami subside. The axis of this tsunami of crime was gold smuggling into India and narcotics trans-shipment through India.

A tsunami that engulfed all major economies of the world.


Unresolved issues of WW1 triggered WW2. Germany hemmed in from all sides by British client-states, unable to find markets for its industrial production,  reacted.

Germany, allied with Japan and Italy, proposed creation of larger ‘home’ markets. This was to be done by ‘expanding’ their own borders – to include neighboring countries. As first steps, on 3 October 1935 Italy invaded Abyssinia, now Ethiopia, Germany on 11-12 March, 1938, swallowed Austria; and Japan occupied Manchuria.

The basic assumptions of all the European powers, Japan and the USA were the same. The Confucian-Platonic ideal of superior, wise rulers who ruled over ‘inferior’ peoples.

These militant powers shared the same disregard for human life. Britain wreaked havoc by creating The Great Bengal Famine. Some 40-50 lakh (4-5 millions) Indians died. Hitler rained the Holocaust on the Jews. Some 50-60 lakh (5-6 million) Jews died.

Same difference.

Three faces of stagnation

Production capacity of non-OECD world was destroyed by years of colonialism, WW1 and WW2. Economic conditions after WW2 improved due to relative peace and as countries of the world started rebuilding their economies in the last 60 years (1950-2010).

The last 60 years has seen significant increase in industrial capacity of non-OECD nations. US extended supplier’s credit – using the US dollar, the favored currency of the Bretton Woods system.

A significant portion of economic expansion of OECD economies during 1950-1980 happened as production capacity of the world was rebuilt. The same capacities that were destroyed by colonialism, WW1 and WW2 – especially during 1850-1950 period.


This creation of production capacity in non-OECD countries means economic stagnation and loss of political power for a few decades across OECD. With greater production capacity in the hands of non-OECD producers,  production capacity in OECD-USA must shrink.

Or a WW3 will be ‘needed’ to destroy the production systems of the poorest countries – to ‘save’ the West-OECD.

Creating false agenda's has become a full time job in the West with specialist think-tanks, media organisations and PR firms. (cartoon courtesy - http://polyp.org.uk). Click for larger image.

Creating false agenda's has become a full time job in the West with specialist think-tanks, media organisations and PR firms. (cartoon courtesy - http://polyp.org.uk). Click for larger image.

Red herrings

To get around this ‘problem’ of stagnation, the West has created artificial ‘crisis’ situations.

  1. Population Explosion
  2. Global Warming and climate change
  3. Civil Wars in Africa
  4. Islamic Demonization
  5. Terrorism
  6. Financial meltdowns

Complicating the current situation is the US currency mechanism, called USCAP (by 2ndlook) which favors selected US allies with advantageous exchange rates. China, Asian Tigers, Japan and NATO-Europe have gained significantly from the USCAP program.

The most notable loss due to trade distortion has been Africa’s.

Power Corrupts

During the 20th century, the world had to contend with an intolerable situation. The Anglo-Saxon Bloc (America, Australia, Britain and Canada) accounted for 80% of gold production (between 1200-1800 tons per annum) and controlled 80% of global gold reserves (around 100,000 tons circa  1920) also. Not even Chengez Khan had that kind of control over global economy.

Dawn of a new century

Things change.

At the beginning of 21st century, gold reserves in the hands of all the nation-States, are at a historic low. All the Governments in the world own less than 20%, i.e. 30,000 tons from global gold reserves of 150,000 tonnes.

Another 5 years of aggressive gold buying by global consumers will see this down to possibly 15%-17%. This will severely limit the ability of any State to wage a prolonged war.

A collapse of the currency systems in the world is imminent – in the next 5-15 years. Gold may give super-normal returns in the face of such an event.

Desert Twins - Westernization and Jihad. Problems both!

Desert Twins - Westernization and Jihad. Problems both!

Desert Bloc – beginning of the end?

The 20th century possibly saw the Desert Bloc reach its high-point. The world fully understands the bankruptcy of the Desert Bloc – and it may take some time for the effects of Desert Bloc propaganda to wear off.

Celebrations may, however, be premature. The alternate to Desert Bloc politics – भारत-तंत्र Bharat-tantra is yet to regain traction.

Indian Gunpowder – the Force Behind Empires

Posted in Business, European History, Gold Reserves, History, India, politics by Anuraag Sanghi on June 18, 2010
A vizcacha, relative of the chinchilla, in Chile's Atacama Desert. These herbivores are among few who thrive in the Atacama. (Photo shot on assignment for "The Driest Place on Earth," August 2003, National Geographic magazine) Photograph by Joel Sartore

A vizcacha, relative of the chinchilla, in Chile's Atacama Desert. These herbivores are among few who thrive in the Atacama. (Photo shot on assignment for "The Driest Place on Earth," August 2003, National Geographic magazine) Photograph by Joel Sartore

Arid, Desolate Atacama

On Chile’s northern border is the remote, arid Atacama desert. Desolate and dry, rain in Atacama happens once in 2-3 years. Some people living in the Atacama have never seen rainfall in all their lives. Yet, there is some sparse wildlife – a tribute to hardiness of living beings.

Strangely, the Atacama is home to a few ghost-towns – once boom towns. For five years, from 1879-1884, Bolivia and Peru fought with Chile over this rainless, arid and desolate terrain.

Behind this curious importance of the Atacama desert was nitrates. It was Atacama’s nitrates interestingly that broke an important British monopoly – based on India’s saltpetre production.

Untold secrets

In 1809-1810, the British had to mount a serious campaign in the Indian Ocean. The French, from their Indian Ocean naval bases at Île de France (Mauritius), Bourbon (Réunion) and Rodrigues, attacked East India Company ships carrying valuable saltpetre (also saltpeter, nitre, niter) – so essential for the Spanish War (1808-1809).

Indian saltpetre for could not reach Confederate armies due to Union naval blockade!

Indian saltpetre for could not reach Confederate armies due to Union naval blockade!

The British army, retreating across Spain, in harsh winter conditions, needed saltpetre. Under the onslaught of the French forces, ruthlessly pursued, the final escape of the British army, from Corunna was a miracle. The British General, John Moore’s death, at Corunna, Spain, was turned into a heroic ‘victory’. Charles Wolfe’s poem, The Burial of Sir John Moore after Corunna became essential reading for every English schoolboy.

In 1800, a son from a rich family of refugees from the French Revolution in America, after a survey of business opportunities in America, wrote

There already exist in the United States two or three mills which make very bad powder and which do however a very good business. They use saltpeter from India which is infinitely better than that which is produced in France but they refine it badly.

The son was Eleuthère Irénée du Pont, the family was the Du Pont family – and their firm is now known as EI du Pont de Nemours and Co. EU du Pont’s expertise in manufacturing saltpeter came from his training with the French Agency for Powder and Saltpeter (Regie royale des poudres et Salpetres) – and under the tutelage of Antoine Lavoisier, the French chemist, he boasted.

Behind the Dupont fortune was Indian saltpetre. Behind Lincoln’s success in the American Civil War was saltpetre. Behind Anglo-French confidence against Germany in WW1 was the control of the saltpetre deposits from India. Germans were able to sink many of these British saltpetre shipments. In turn, Germans with the Haber-Bosch process, in BASF factories, continued the war – without Indian saltpetre or Chilean nitrate supplies.

Saltpetre – what’s that?

What was saltpetre? Why was saltpetre important. Why did India play such an important role in saltpetre?

Unusually important, the chemical name of saltpetre is potassium nitrate – an essential ingredient in gunpowder. Indians had perfected the method of preparing potassium nitrate (KNO3). The other two ingredients in gunpowder being charcoal and sulphur – easily and freely available and cheap.

India’s military technology is history’s greatest ‘hidden’ secret. Official (and Western) portrayal of Indian military systems in the face of Islamic invaders, Mughal sultanate  and the rise of British imperialism makes out India as a sitting duck with ill-trained and terrified soldiers, armed with bows and arrows, who were hopelessly outclassed by the enemy.

Facts being otherwise, it raises questions about motives for this deliberate wrong portrayal.

The story from Mongolia

In the last 1000 years, there are sketchy records of gunpowder in India, with Rai Hamir Deva of  Ranathambore of the Malwa region, who supposedly used some Mongol deserters (1300 AD) to fight Khilji armies with gun powder. This may be misleading for two reasons.

Modern history credits China with the invention of gunpowder. Firstly, this is largely based on the work of a self-confessed Sinophile – Needham. With a dismissive one sentence, Needham opines, “On Gunpowder history in India, Oppert (1) was duly exploded by Hopkins(2).” And Indian history as the world’s largest producer of gunpowder was swept under the carpet. Needham conveniently ignores evidence like how

Jean Baptiste Tavernier recorded a local tradition in the 1660s that gunpowder and artillery were first invented in Assam from whence they spread to China and he mentioned that the Mughal general who conquered Assam brought back numerous old iron guns captured during the campaign.

Secondly, Mongol territories extended from Mongolia to the gates of Vienna and Russia – but not India. How is it that a few deserters-soldiers could establish the world’s largest gunpowder production system, so rapidly in non-Mongolian India. But, could not do so in conquered territories of China, Central Asia, Middle East, West Asia, and Europe.

A 100 years before Needham, India’s pioneering status in saltpetre was common knowledge. English publications, for instance in 1852 and another in 1860 gave weightage to the opinion of

those who believe that gunpowder was invented in India and brought by the Saracens from Africa to the Europeans; who improved its manufacture and made it available for warlike purposes.

Unlike China, with an odd textual reference or a drawing or a singular artefact, was the entire industry in India – which remained unrivalled in the history of the world. Compared to China’s paltry production of gunpowder, India’s widespread and organized gunpowder production system points towards indigenous development. There are reports, that in “664 an Indian visitor to China reportedly demonstrated the peculiar flamability of saltpeter and provided instructions on how to locate it (Pacey 1990, 16).”

Tall tales … thin stories

The deserter Mongol soldier source seems rather far-fetched considering that Mongol armies studiously avoided attacking India.  India, the richest economy of the world at that time, known and famous for its wealth, was spared by Genghis Khan! Just why would history’s foremost looter, invader, pillager spare India?

When Genghis Khan’s Mongol armies were running rampant, Islamic refugees found shelter in India, during the reign of Iltutmish. In 1221, Khwarezm-Shah and other Persian refugees, sought refuge in India, across the Indus into the Punjab, India, from Genghis Khan’s Mongol armies.

Encyclopedia Britannica says Fortunately, the Mongols were content to send raiding parties no further than the Salt Range (in the northern Punjab region), which Iltutmish wisely ignored …” (emphasis mine). As Indian military reputation waned under foreign Islamic rule, the Mongols mounted a military expedition. The Mongols could succeed in India only under the foreign rule of the much-derided Islamic Tughlaks.

Was Nalanda behind the gunpowder expertise in Bihar and Bengal region. A section of the Nalanda Mahavihara. The qualities of Buddhahood were personified in the vibrant style of art that was created in the university's intellectual atmosphere. (Picture by BENOY K. BEHL, courtesy: The Frontline). Click for larger image

Was Nalanda behind the gunpowder expertise in Bihar and Bengal region. A section of the Nalanda Mahavihara. The qualities of Buddhahood were personified in the vibrant style of art that was created in the university's intellectual atmosphere. (Picture by BENOY K. BEHL, courtesy: The Frontline). Click for larger image

India – the largest gunpowder source in the world

Now, combine saltpetre production with the fact that the heart of the Indian saltpetre production was in Bihar, which was also the home of the Nalanda seminary /university.

By the 16th-17th century,

In parts of India that never were frequented either by Mohammedans or Europeans, we have met with rockets, a weapon which the natives almost universally employ in war. The rocket consists of a tube of iron, about eight or ten inches long, and above an inch in diameter. It is filled in the same manner as an ordinary sky-rocket, and fastened towards the end of a piece of bamboo, scarcely as thick as an ordinary walking cane, and about five feet long, which is pointed with iron.

What about Europe

Saltpetre based gunpowder was in constant short-supply in Europe. Gold from the Americas, flowing into European trade channels, fuelled demand for gunpowder. Gunpowder became an essential ingredient for subjugation of natives, extraction of gold, capture of territories and slaves, piracy on the high seas – all the real reasons for ascent for European power.

The European gunpowder situation was grim. This can be gauged from “a letter of 1605 from the King of Spain to the Viceroy of Goa (the Portuguese trading settlement on the south-west coast of India) for example ordering the annual dispatch of 10 or 12 caskets of saltpetre.” Remember in 1605, Spain was the prime power European power. Compare that to the Indian situation.

When Raja Pratapaditya of Jessore capitulated to Islam Khan in 1609, he agreed to surrender twenty thousand infantry, five hundred war boats, and a thousand “maunds” (41 tons) of gunpowder.

Saltpetre from India kept the British 6-pounders busy at Waterloo!

Saltpetre from India kept the British 6-pounders busy at Waterloo!

The outcome of Waterloo can be gauged from a forgotten statistic – “In the year before the battle of Waterloo (1815) the East India Company exported 146000 cwt. of saltpetre to England.” 146,000 cwt is  7300 tons of saltpetre. British Ordnance Board powder mills in 1809,

produced 36,623¾ ninety pound barrels of powder and private contractors using government supplied saltpetre a further 24,433 ninety pound barrels. Some of British munitions output was supplied to allied governments: Portugal received in the years 1796-1801 … 10,000 barrels of powder, 500 tons of saltpetre; the British Government put into execution the gigantic plan of being a depot, the manufactory, the place of arms, and the centre of the European war

Spain and Sweden also received munitions for fighting on the British side against Napoleon. British victory at Waterloo, was in no small measurethanks to the use of Indian saltpetre, British gunpowder was widely recognised to be far superior to the charcoal-like French product.” British creditworthiness received a boost just before Waterloo. British debt, trading at 25% discount in 1813, was boosted by Indian gold, in 1813, procured by Britain.

Western historians now reluctantly admit, that without the “accumulated credits from Indian transfers since 1757, Britain’s financing of land warfare during the French wars could have been compromised.” Napoleon and France could not “march their combined armies to India, and strangle the supplies of British gold that had been financing successive coalitions against France.”

Without the advantage of Indian saltpetre, with a threatening Britain

in 1792 France was able to face danger on all sides, it was because Lavoisier, Fourcroy, Guyton de Morveau, Chaptal, Berthollet, etc., discovered new means of extracting saltpetre and manufacturing gunpowder.

Some 6000 factories manned by ‘salpetriers worked in France to overcome the naval blockade.

Meanwhile in India

Malwa’s rulers recruited  Purbias from Bengal and Bihar for their expertise in gunpowder. The British initially valued and later (after 1857) feared the Purbias for the same reason. The other reason was an established saltpetre production in the Malwa region till the 19th century. In Punjab, the main centres were Lahore, Hissar, Multan and Amritsar.

India’s gunpowder production system

India was the largest gunpowder production system – in the history of the world, till the 20th century. Specifically Bengal and Bihar regions. Operated by a caste of peoples called the nuniah, saltpetre beds supplied the most vital element in gunpowder – saltpetre. And India produced virtually all of it.

Especially, Bihar, Bengal, Agra and Tamil Nadu, Andhra and Karanataka regions (Anantapur, Coimbatore, Guntur, Kurnool). The Guntur Sircar also manufactured saltpetre on a commercial scale. A mid 17th century Royal Society paper documented how saltpetre was made in India. Most of the miniscule amounts of saltpetre produced in the rest of the world was calcium nitrate, a hygroscopic salt, which spoilt easily by absorbing moisture from air.

The Armenians, the ill-fated Omichund, a “notorious Calcutta merchant who was later to engineer the Plassey Revolution” played an important part in the Bengal/Bihar saltpetre trade. They were all significant players in the export of saltpetre (potassium nitrate). Also known as niter, saltpetre was a necessary ingredient for gunpowder.

Gunpowder becomes a British monopoly

After the annexation of Bengal,

“By seizing Bengal, the British exerted mastery over 70 percent of the world’s saltpeter production during the latter part of the eighteenth century. Since powder stocks could not be prepared quickly or easily, demand was no less during peaceful interims than during times of war, for, in addition to normal sales for peaceful purposes, gunpowder was steadily purchased or produced to build up military powder reserves for emergency use.

One reason why China developed fireworks, rockets, and other incendiaries rather than shot-firing artillery was China’s reliance on artificial saltpeter for making gunpowder. The Chinese also often used a higher proportion of charcoal and sulfur, which resulted in more fire and less ballistic strength. (16) India, on the other hand, produced saltpeter of very high quality, enabling the development of gunpowder weapons, in particular heavy siege guns, in addition to rockets. In many ways, Indian gunpowder making was more advanced than that of China, particularly regarding the strength of the final product, in its commercial organization, and in its application to military purposes.

As early as the 1460s, nearly forty years before the commencement of the East India trade, these Persian sources make it clear that the rulers of Jaunpur and Bengal already had organized saltpeter production as state monopolies managed by their chief merchants.

India was roughly a century ahead of Western Europe in terms of developing the infrastructure for gunpowder technology. It is significant, though, that gunpowder was not shipped to India from Europe in any significant quantities. By 1617, the Portuguese king had joined the general European clamor for more saltpeter. The capitalization of the saltpeter trade at Rajapur was in the hands of Saraswat Brahmins, with investors participating from as far away as Goa and Diu. Shivaji (r. 1664-1680) and his successors made nitrate procurement into a state monopoly, thus forcing the Portuguese, their Indian agents, and Banjara peddlers to deal with the Maratha state.

The Mughal Empire has been styled a “gunpowder empire,” which is a debatable characterization. (34) It is clear from Mughal records that guns were important, if only as symbols and occasional instruments of imperial power. The victory of Babur (r. 1526-1530) over Ibrahim Lodi (r. 1517-1526) often is attributed to his use of artillery, however, Babur himself valued his own judgment at least as much as his Turkish guns. (35) After the Battle of Panipat (1526), the first Mughal ruler ordered executions by firing squad, which are some of the first such killings recorded. Contemporary descriptions of Babur’s battles, however, emphasize the continuing dominance of cavalry, with guns present but not decisive. Nevertheless, warfare was changing in South Asia. Babur’s eldest son and successor, Humayun (r. 1530-1539/1555-1556), was keen to bring Rumi Khan, the Turkish artillery expert employed by the Sultan of Gujarat, over to his side. (36) The widespread use of firearms by Sher Shah (r. 1540-1545) during the brief Sur interregnum is significant, as is the fact that Sher Shah himself was killed by a gunpowder explosion. (37) The early sixteenth century, for India, was a time of significant military change, a watershed between the age of the blade and the age of the gun.

Sher Shah realized that a large army of peasant matchlockmen, recruited and paid by the state, could only exist in the context of a bureaucratic regime with enhanced revenue-collection capabilities and in a kingdom with strong commercial institutions. This lesson was not lost upon Akbar (r. 1556-1605), whose advisor, Abu al-Fazal, adopted many of Sher Shah’s innovations. The rising importance of the saltpeter trade, as well as its lowly origins, may be gauged by the meteoric rise of the warlord Hemu, who had opposed Akbar’s accession to the throne. Akbar’s biographer-courtier, Abu al-Fazl, uncharitably informs us that Hemu was a member of “the Dhusar tribe, which is the lowest class of hucksters in India. At the back lanes he sold saltpetre (nimak-i-shor) with a thousand mortifications … till at last he became a government huckster….” As Akbar’s army set out to challenge Hemu, their spirits were roused by a giant image of the saltpeter merchant-turned-general, filled with gunpowder and set on fire. (38) Ironically, Hemu was killed by the Mughals not with a musket shot, but in the old-fashioned style, with an arrow in the eye, followed by a sword blow to the neck.

Significantly, Sher Shah’s infantry, carrying firearms, were recruited from the eastern Ganges Plain, the same region in which saltpeter production had already become an important component of the regional economy. Later, this area provided infantry for the Mughals and eventually for the British, too. (from The Indian saltpeter trade, the military revolution and the rise of Britain as a global superpower. from: The Historian, Article date: September 22, 2009, Author: Frey, James W.)

After obtaining this vital monopoly, Britain protected this. Saltpetre exports were banned. Thus an ancient Indian technology was harnessed by the English to subjugate the Indian.

From gold came saltpetre, which made getting gold easier

Greater access of saltpetre to the British and with the shutting out of other European powers, saltpetre became essential for other European powers, because English had it. It became rare, as the English monopolised the trade.

In 1775, the French scientific publication, Observations sur la physique a proposal by Academie Royale des Sciences for increased saltpetre production within France.  Finally, a prize was announced in 1783. Nicolas Leblanc set up a factory at St.Denis, during 1791-194, near Paris for manufacture of saltpetre in France. The whole of France was mobilized for this saltpetre collection and gunpowder production.

Directions for gathering of saltpeter were printed and sent all over France. The prescribed recipe for saltpeter, charcoal, and sulphur was dispatched to the flour mills and the powder was ground according to simple specifications. Each district was directed to send two citizens to Paris for a month’s course in the casting of bronze and iron and in new methods for the manufacture of powder. (from From crossbow to H-bomb By Bernard Brodie, Fawn McKay Brodie.).

At the start of the American Civil War, against the Southern  Confederates, The North started with the benefit of a stockpile of some 3 million pounds of niter – i.e. saltpetre. The Confederates  sent James Mason and John Slidell to obtain saltpetre from Britain – and not empty diplomatic recognition from European powers. Mason and Slidell were captured by Unionist forces. Britain demanded release of Mason Slidell. Lincoln refused.

Queen Victoria issued a proclamation forbidding the export from all ports of the United Kingdom, of gunpowder, nitre, nitrate of soda, brimstone, lead, and fire-arms.—London Gazette, Dec. 4.

Britain imposed a ban on exports of saltpetre. Known in history as the Trent Affair, as Union saltpetre stocks went down, Lincoln backed down and agreed to release Mason and Slidell. Prices of saltpetre skyrocketed from some US$0.20  to US$3.0 within one year after the war began. The  Confederates established a Niter Corps to manage this shortage. British godowns overflowing with Indian and Egyptian cotton, did not really depend on Southern cotton, declared neutrality – and supplied both sides with Indian saltpetre.

Well understood by the US Government, C.H.Davis, of the Bureau Of Ordnance, Navy Department, on November 22, 1862 reported to the US Congress,

I feel it, therefore, to be my first duty to urge that suitable provision of ordnance material be made for probable future necessities of the Navy. Most important among them is nitre, which enters so largely into the composition of gunpowder that it may be said to be gunpowder itself, with some slight additions of sulphur and charcoal under proper combination.

It is not produced naturally in this country, nor by any other but India, except in insignificant quantities.

Hindostan alone supplies the whole world, which being a British dependency, places us entirely at the mercy or caprice of that power for our stock of this essential article.

India's widespread manufacture of saltpetre was private enterprise! Without state subsidy or support! (Picture by BENOY K. BEHL, courtesy: The Frontline). Click for larger image.

India's widespread manufacture of saltpetre was private enterprise! Without state subsidy or support! (Picture by BENOY K. BEHL, courtesy: The Frontline). Click for larger image.

End of the saltpetre era

With the arrival of Chile’s nitrate (sodium nitrate – NaNO3) deposits in Atacama desert, the world was weaned away from Indian saltpetre. Chilean nitrates were used to derive nitric acid, a key intermediate for explosives manufacture.

Chilean nitrate was sodium nitrate, (NaNO3), which could be used to derive nitric acid. Nitric acid was used for manufacture of explosives. HAPAG, the Hamburg based shipping line,  became the biggest in the world, carrying Chilean nitrates to Germany. The end of Boer War (1899-1902) saw the emergence of Germany as a major producer of munitions – especially the smokeless gunpowder. Even Britain started buying from Germany.

For a brief while, guano, a natural fertiliser composed of bird droppings, was also a source of nitrates for explosives. But, with the Haber-Bosch process, Germany could manufacture explosives – without the Chilean nitrate.

With the discovery of nitroglycerine and TNT and its widespread commercialization by Alfred Nobel (of Nobel Prize fame) from the 1860s onwards, this British saltpetre monopoly end. As the British monopoly over gunpowder started weakening, the British policy changed.

Pirate nation to super-power

Till 1856, sea piracy was legal.

The British crown gave permits for pirates to operate on high seas – through, what were known as, letters of marque. With the sanction of the English State, high seas piracy became a national pastime in Britain. Pirates like Sir John Hawkins made money on slave trade and piracy – targeting Spanish ships. Queen Elizabeth, apart from knighting him, also participated in these criminal enterprises. The Spanish Armada was assembled by Spain to end British piracy. Further on, British propaganda made these pirates and privateers into heroes – and the Spanish Armada into an instrument of Catholic repression.

Piracy was outlawed by The Declaration of Paris, in 1856, ratified by various powers. Initially by Austria, France, Great Britain, Prussia, Russia, Sardinia and Turkey – but not by Spain, Portugal and the USA. Soon after, Britain became a buyer of explosives, munitions. Challenges to British power started soon after this.

In less than than a 100 years after invention of alternates to Indian saltpetre, Britain was a shadow of its former imperial self.

The end of Indian saltpetre

To cover the cost of the Anglo-Indian War of 1857, the British Raj increased taxes on saltpetre. British traders from India started clamoring for a reduction in export duty from 1860 onwards. From more 20,000 tons of saltpetre exports in 62-62, it fell to around 11000 tons by 1865, and continued declining there after.

By which time, Britain was already the preeminent power in the world. On the back of Indian gunpowder factories.

Behind the Dupont chemical empire and  fortune was Indian saltpetre.

Country Model Of The West

Posted in Current Affairs, European History, Feminist Issues, Gold Reserves, History, Media, Uncategorized by Anuraag Sanghi on February 7, 2008

Chinese R & D SpendsThe Myth Of Western Technology

In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software success, have taken away the sheen from the myth of Western technological prowess. Post colonial revisions in history are eroding the euro-centric version of biased history.

Failed Westernisations

For some time, the easy way out seemed to be ‘copycat’ westernisation. One of the first ‘copycat’ states was China. China, led by Sun Yat Sen, (original name Sun Wen and started calling himself Yat-sen; Chinese call him Sun Zhongshan), was the first major power which tried going down the western path. The Japanese invasion of Manchuria sounded the death knell of the Chinese Republic and Monarchy.

China – Mao & Sun

Sun Yat Sen decided to westernise and make China into a Republican democracy. Chinese were made to cut their queue – pleated hair braids. This diktat was enforced in 20 days time. Sun Yatsen and later Mao Ze Dong made the Chinese change their dress styles too. The effect of this westernisation – an enduring sense of being followers. The Chinese add a western name to their Chinese one – Michael Tang, Bruce Lee, Jerry Yang, Tommy Tang, Tommy Chi.

In Hong Kong and Macao, white tourists are royalty. Chinese companies routinely parade White, Western investors – and the Chinese investors follow. Western marriage ceremony, Chinese couples think, is very romantic. The Christian Church wedding is common in China.

Not that Indians are too far behind – consider Steve Sanghi, Paul Parmar, or the best of them all, Bobby Jindal.

Mustafa Kemal AtaturkAtaturk’s Turkey

Turkey – led by Mustafa Kemal Ataturk was the next ‘copycat’ attempt at westernisation. After WW1, the victorious allied powers dismantled the Ottoman Empire. Turkey was reduced to a rump state.

Mustafa Kemal Atatürk was ‘installed’ by Western powers. Thereafter, Turkey has lurched from crisis to another. Post WW2, it has mostly been ruled by military dictatorships. From an arbiter in Europe, it has become a supplicant, begging for entry into EU. Instead of the queue in China – it was beards in Turkey. Atatürk enforced a new dress code on the hapless Turks – and the traditional fez was banned. Stop wearing the fez or else …

Russia – Westernising Since Peter The Great

Peter the Great, (of the Naryshkin family) co-ruler of Russia, (along with Ivan of the Miloslavsky family) ruled from 1682-1725. For more than 40 years, his agenda was to create Russia in the Western mould. His travels to Germany, Britain, Sweden (before becoming a Tsar) shaped this agenda.

One of the first things he did after becoming a Tsar was to ask his boyars (Russian nobility) to shave their beards! Catherine The Great continued this during her reign from 1762-1796. For the next 125 years, Russia vacillated between a medieval country and modern western country.

Now, the imprisoned oil tycoon Mikhail Khodorkovsky takes pains to show how Russia is a western nation and should be democracy. Khodorkovsky, who at one time nursed political ambition, says, “…I’m convinced that Russia is a European country, it’s a country with democratic traditions …”

How Every US Dollar Is SpentThe Anglo-Saxon Country Business Model

These Turkish and Chinese failures down the western garden path is to mistake the trees for the forest. There are five major features of the Anglo-Saxon country model which these countries did not copy. Not that I am recommending that they be copied.

The Use Of Corporations

The use of the British East India Company was an eye opener for the rest of the West. After Vasco da Gama’s discovery of trade route to India (for Europeans) round Africa, the British were the first of the block – with the English East India Company formed in the 1600.

The Dutch started soon after with the Vereenigde Oostindische Compagnie (Dutch East India Co.) in 1602. The Danish Opperhoved initially started in 1616 and was reborn in 1732, as Asiatisk Kompagni. The Portuguese organised themselves as chartered company in 1628. The French came with the French East India Co. in 1664. The Swedes joined the rat race in 1731 with Svenska Ostindiska Companiet. The Italians came in as the Genoa East India companies. The Hanseatic League had its own operations.

In North America, the Hudson Bay Company (Compagnie de la Baie d’Hudson in French) was given a Royal Charter in 1670 by Charles II. It practically owned Canada when the Dominion of Canada was formed – and is the oldest surviving company in North America. It monopoly ended only in 1870 – a few years after the Indian Independence War of 1857.

Anglo-American Oil Company (subsidiary of Standard Oil) of Iran plotted the the assassination of Iran’s Prime Minister Haj Ali Razmara and the overthrow of the Mohammed Mossadegh regime. Thereafter, it was the puppet regime of Shah Of Iran which terrorised Iran for 30 years that paved the way for return of Ayatollah Khomeini – and Iran’s regression to medieval times. And who was leading this campaign – Kermit Roosevelt (Teddy Roosevelt’s grandson).New Clues to JFK’s Murder?

In South America

In 1997, the CIA de-classified papers which admitted it planned and executed the coup in Guatemala – something that was known all along. This was done to protect the interests of the United Fruit Company – which owned large tracts of agricultural land in South America, used South American labour and shipped out fruit to America. Guatemalan farmers were run out of the market.

When Guatemala proposed land reforms so that Guatemalans could prosper in Guatemala, the Government of Jacobo Arbenz was overthrown. By the way, the term Banana republics came into being from the frequent intervention of the US into South American countries – and then ridiculing these countries for instability. To obtain US Governmental intervention, the United Fruit Company engaged services of Edward Louis Bernays (Sigmund Freud’s nephew) as PR front man.

Good ole DaysThe last 100 years saw the use of these companies as a means to economic dominance. ITT was used in South America for installing and removing dictators

… ITT papers published by Jack Anderson in March 1972, and in the hearings on these papers conducted by the Senate Foreign Relations Committee a year later. This material establishes that offers of financial aid aimed at stopping Allende were made by ITT president Harold S. Geneen to the CIA in July 1970 and to Henry Kissinger’s office in September” (Foreign Affairs; January 1974).

Had Richard Nixon and Henry Kissinger not responded to International Telephone & Telegraph and Pepsi-Cola by overthrowing Salvador Allende, Chile “would have found a less violent, more constitutional way out of its conundrum.” writes Stephen Kinzer in his book Overthrow: America’s Century of Regime Change From Hawaii to Iraq.

To gain control of the Panama Canal Company, the operator of the Panama Canal, US engineered the secession of Panama from Colombia. With a puppet Government in place, The Hay-Bunau-Varilla Treaty allowed the U.S. to build the Panama Canal. Subsequent interventions to advance Western oil interests in Colombia and the Canal interests in Panama have reduced Governmental authority in these countries. Drug cartels, kidnapping and ransom now control the economy of these countries.

Nearer home, of course, the next ruler of Pakistan (military or otherwise) is decided by US – at least for now.

First Gold Discovery In AustraliaThe Cornering Of Gold Supplies

For the last 150 years, the ABC countries (America, Australia, Britain, Canada) comprising the Anglo-Saxon bloc (countries, colonies and companies) have controlled 90% of the world’s gold production. Till (a large part of) India was a British Colony, they also controlled more than 50% of the above-the-ground gold reserves. This gave them absolute liberty to print depreciating currency and flood the world pieces of paper(called dollars and pounds), manipulate the world financial system and keep other populations poor and backward.

Enslavement & Annihilation Of The Natives

They could capture gold supplies by the annihilation of native populations in America and Canada (‘Red Indians’ are tourist attractions now), killed the aborigines in Australia (and apologise now).

Till the middle of 19th century, raw slavery continued. By mid 19th century new forms of slavery was introduced – indentured labour, share cropping, etc. They re-invented slavery (in the 20th century again) and renamed it as apartheid which made native populations into slaves. They could, of course, truthfully claim that great Anglo-Saxon frontiersmen discovered gold and settled empty continents – in ‘hostile conditions’.

https://i0.wp.com/img219.imageshack.us/img219/2897/koreausaflagmashupob5.gifThe Creation Of Client Sates

Japan, Korea, Indonesia, Pakistan, Afghanistan, Iraq, Kuwait, most of South America – have been reduced to the situation of client states. The basic position is Uncle Sam knows best – or else! These states have become production centres for the USA, cheap labour will be given an ‘opportunity’ to serve the ‘master’ states.

All these states also have significant military presence of the Anglo-Saxon Bloc which is a matter of concern for India.

Elephants in the room

Western models, which have evolved through the prism of slavery, colonialism, genocide, concentration of power are an end-of-life model. To use end-of-life products may seem like a low cost solution in the short run. The bigger issue in most cases is the  lock-in effect that these legacy systems impose on the ‘buyers’ – e.g. Singapore.

The western model of (natural and people) exploitation has runs its course – for instance, in India even salt was made into a high-tax commodity. It is a dead-end model. Parts of this model, have been used successfully by other countries – Japan with its keiretsus and Koreans with their chaebol. But obviously, this is a model that the West is an expert in – and what others copy, the West has finished with. Copycat models allow the west to predict the next steps easily and taken competitive actions with certainty. The answer for others is to create another country model. The only country which has tried this is India.

The Alternate Model

Bharat-tantra, the Indic political system that depends on local justice, low-policing, non-state free-coinage /gold-as-currency, absence of religion, property rights for all, low-tax systems, free-labour (as opposed to slave labour), enterprise instead of employment, wealth-and-property distribution instead of concentration, is the model that has a future – and a record of past success.

India, where non-State reform has played a very major role in crime, policing (JP’s dacoit reform), land reform (Vinoba Bhave’s Bhoodan movement), political change (JP’s Sampoorna Kranti movement). After the economic buffer from Bombay High oil discovery in 1974, the Indian State has certainly, steadily shed various aspects of its colonial legacy. More importantly, India did not go through the slavery-colonialism-capitalism route at all.

It has instead inching towards a republican, (largely) market-driven, democratic, declining role of State, multi-ethnic-religion-linguistic political model which is unique in modern history. What India needs to do is to one decrease the colonial inheritances further. Deliberate amnesia by historians, has obscured Bharat-tantra. India is today slotted as a socialist country – where as it has been reducing the features of a socialist State.

The underestimated and undermined political leadership in India, has worked at renewing  the Indian model – which is non-exploitative, stable and can bring equity and growth. It is this model that before others, India (and Indians) should believe in – and beat a modern path for the world to follow.

© with respective copyright holders. Copyright details embedded in the links.

Tagged with: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
%d bloggers like this: