M. G. RANADE, C.I.E .. M.A" LL.

8"
JUDGE or H1'I MAJESTY's HIGH COURT OF JUDICATURE, BOMBAY
E S S A Y ~
ox
INDIAN ECONOMICS
A COLLECTION OF ESSAYS AND SPEECHES
BY
MAHADEV GOVIND RANADE, C.I.E.,
SECOND EDI flON : Rs. TWO.
PUBLISHED BY
G. A. NATESAN & CO., MADRAS.
}!)06.
jV0;f1E BY THE PUBLISHERS.
--- - - - - . ~ - -
The first edition of this book was puhlished
11\ 1898 during the lifetime of the Ruthor.
With the kind permission of Mrs. Hamabhai
Ranade, widow of MRhadev Govind Ranade, this
foOeC'ond editioll is Il0W issued to the public ill the
hope that it will command the wide circulatioll
which it so \'\'ell desen'es, egpecially at this
moment. V\hell important questions relating to
the development of the material resources of
the country are keenly discussed.
PCBLI8HERS' PREFACE TO THE FIRST EDITION.
---:0:---
'1' HE t weI ve on Indian Economics in-
duded in this VoIlllllf', relJresent the firs"
instalmem of the wriLin:,!s and of the
Hon'ble Mr. Justice Hanade, which his Ilumerous
friends have IOllg desired to see ill a tollected
form. The keynote of these Essays is fumished
in the first Chapter 011 "'lHdiarl l:'ohtical
Ecollomy," alld the subsequent Essit)'s only
develop the malll thesis ill their lJractical
applications to the subje(:ts of Credit Organiza-
tions, State of Agriculture and
Industry, Emigration, Local Self-Government,
Emancipation )lnd Relief of the A!!TicuItural
Classes, and the Alienation ot La.lld in British
India. It is well knowil that on marlV of these
points, the views held hy the representatives of
Indian public opinion are nllt alw)lYs in full
ilccord wit.h those which find favour with the
most popular English sentiments 011
subjects. Tllis divergenee of views makes it the
more important that the presentmellt of Indian
11
thought should be m;\de In' one who h;\s
studied both sides of the q IleSLiort with a COll-
scientious clesire to arrive at the truth. Th",
Essays IIOW published cannot f;\il to satisfy the
reader that Mr. Justice Rallil<le has stated the
case fairly without exaggeration. He has spared
no pains to lllllke himself IH:quainted with first-
hand sourees of ilifoilllation. After settillg forth
the results of the study of tIle original autlw-
rItles, the lIlodificatiolis sllggested by the
circumstallces of this COUlltr.V ill the received
Maxims of En"lish PoliLic<11 Economv are stated
.
without reserve an(l wiLh 11. filII sense of responsi-
bility in terril;; which, it is hoped. will carr:-'
convictioll lO lIlillry l I l i l l d ~ , which have not lost
the power of assilllilatin\! lie'" truths. There are
clear indicatio"s already of a change of feeling'
ill the highest quarters Oil lIlany of lhese
subjects. Ullder the infiuerl(:e of the Imperialist
sentimellt, the hold of lilt" old orthodox idea of
Political ECOll()1l1Y is !.!racluall" loosellin(!, and a
, ." ,
higher concept.ion of the flllletiolls of the State is
being more ancl more practically realized than
was the case thirty years IIgo, when the luis8t!::
fail'e Poliey was predominant. The ClrCUtn-
Publishe'l's' pj'eface.
III
stances of India, just emerging from the
depression caused by manifold calamities of
Famine and pestilence, also require a specially
sympathetic treatment. The time, therefore,
seems opportUlle for presenting to the public
the most matured thoughts of modern India on
these large Economical Questions, which CIlU
for immediate solution.
The public appreciation of this finst instalment
will encourage the publishers to bring out three
more volumes of Mr. Justice Ranade's writings:
(IJ.) His Chapters in Maratha History; (III.)
Essays and Speeches on Socio-Religious Questions
to which he has devoted considerable attention;
ami (IV.) lastly, his Theistic, Literary, Educa-
tional and Miscellaneous publications.
--:0:--
CONTEX rs.
I. I\"IILI:\, I'OLITICAL ECO:\,mIY
rL TilE HE-OI{('A:\'IZ.ITIO:\' OF HEAL ClU:nIT
I \" I :\' ()( A
Ill. \"F.TIIF.HLA:\,IlS l'irH.I A'iI> TilE (TLTI"HE

IY. I'HE"E:<IT STATE IW l'iIllA:<I
T!'RES A:<II. (Jl"TLOOK OF TIlE S,Dn:
\' ('iIlIAS 1,'OHEIG'i E'1I0HATlO:\'
Y l. (HOS ATTE'll'Ti'
yr I. l'iI)[,STHIAL C()\"FEHE'iCE
"I IT. TWE'iTY YEAH,,' In: II Ell' 01" CE'i",l'''
'IT ATIRTICS
r X. LO(,A1. GOn:R'i'IE'iT l'i E'itiLAXn A:<I1l
l'iIlIA
X. K\[AXCIPATIOX OF 'lEH(o'" IX HI'SSIA
XI. PIIl'"SIAX LAxn LEGI'lLATIOX A'i1J TIII-:
IlEXGAL TEXAXCY flll.L
XII. TilE LAW m' LAXIl SALE I\" BHITISfi
ISIlI A
HGP:.

io
10;;

I io .
;
209'

26:!
2ii
314
ESSAYS ON INDIAN ECONOMla
., , , ,. ,. I' "'" I,' I' , ,. , ,. , ,.
I.
I N DIAN POLl TICAL ECONOMY.

the beginllillg of tbi" year bt-fore Ii "illlilar gather-

ing in II mastt'r-hanrl sketchpd the ont-
I ines of thf' inflllf'll(,p of Xatnre on Literature and Poli-
tit,S, and in a Iic-w holtl touches showed how, from tilllt'
to timf', tllP aherrations lind evil ohsen-ablt'
in English thollght lIud action wert' countf'raetpd awl
correded hy all appeal to, and Ii diligent Study of.
thf' standard of;.; abll'f'-the Filla I Souret' of all Tnit'
Knowledgt>, IIIItI the only Guide to wise eOlllllld, TI.t'
l!ame mastpl'-llHncl tlrf'W also tiw moral to hI' It'anll'd
from such a Stlldy,---the moral bt'iug' that lIur growtl.
conld only hp ill corn'''I,ondellcp to our nl'titnd,',
and RurrouncliIlA", aJ](l that Ill' "honld h .. 1111 onr gilaI'd
against prf'eipitlltiollllnd hot-I,on"e cnltml'. wllich Pal.
lIt'vel' lead to )WI'Il1HTIl'lltly lWlleticial Tlwl'P
ean he no t10nht that the Hi"torieHI I illt' of TII/lllgbt "0
tlel'elope<! i" to sOllie t'xtellt tilP "hi .. f "hanlett'ristic
ft'llture of tlw latter half of the l're"t'llt ('P1Itmy. It
occurred to nit' at the time that if tilt'; Law of Relati-
* LectufP ill til(' Deccan Co11ogC', Poona, ill
2
ESSAYS 0:'< ECO:-i0'ncs.
vity and Correspondence holds good in Politics and
Social t":leience generally, it oug-lit to hold good equaJ1y
in all kindred subjects, including', among
of National \Vealth, or, II': it is more popularly
PuJitieal Eeonomy. ,\,: a matter of fact,
however, what du we :,ee about n,:? The same Teach-
and t":ltatesnwn, who warn us against certain tell-
deneies in our Political aspiration" forget this salutary
caution when the 'Inestion at i,:slw is one of Indian
Economics. Th,,), seem to hold that the Truths of Eco-
nomic Reience, as they have been f'xllOunde I in Olll'
most popular Text-hooh. are absolutely au< l
demonstrahly true, and must be Iw(."'pted as guides uf
conduct for all time and plact> whaten'!' might be tlw
stage of National ad\'ance. Ethnical, Social, Juristie,
Ethical, or Economical difi'"I'f'w'p,: in the environments
are not regarded a;: having any illtlllPllee in modifyiug
the practical application uf t hp;e Truths. If Frpe
Trade is good for England, it IIlIl;t hp f'(IUally benf'ficia I
to all Countries, and, probihitin 01' Protective Dutie:;,
Bounties and Rubsidies, Hf',tri(,tioli; and ReO'ulatin>
. ,.,
Control, are ahsolutf' Evils, at II I no thought need be
given to the relative difi'f'rem'f', ill ('i\'ilization, or tIle
posses.;ion of natural ad\'antagp,:. or disadvantages in
matters of situation, elimatf', soil. aptitudf':;
and wants. If Factory Legisll1tion is good in one
country, it must be equally needf'd tQ protect Labourers
everywhere. If Laws in restraint of l:sury are out of
POLITIC.\L ECO;SO:\IY.
3
place in ('eutres of Commereial and manufadurillg
tht'y be e'lually pernieious in haekwHrd,
antiquated, aJl(1 agrieultnral If tlop
State no occasion to !tell' Credit in
England, the demand fur ,.nclt help in Countries wllPre
fht' spirit uf primtp enterpl'i"t' is ft't'ble i" also held to
be prt'post.el'Ous. If the GOl"ernment uf advanced
do not ullflertake certain functions with a
view to dhect Industry and lwlp enterrJrise, the Go\'-
t'rnment out llere is eqm'lly l'redudt'd from taking any
new lint' of departure in these If dired
suit English conditions of life and property, they nllu,t
Ilf' equally "nitablt' to In(lial1 conditiom, and Octroi amI
Transit ])uties must he kept down rigorou,.lyas source-;
of our Local or Munidpal Tneollle.
J might multiply instanct's witllout numbe]"
hut those given above will, I hope, sene to illustrate
my present purpuse. Even if :-it,atesmen had stoppell
ht're, tht're would IlRve ht't'n sorne extenuation for the
line of conduct adopted by them. T!w absolute
Truths of Political Economy, however, appealed
to as a justification lor a curious change uf li"unt. ::\1e11,
who COllle frum a country where primtp property ill
laJld most ahsolute, develop on their a1Th"a! here a
taste for The State to
relegate all Primte j'roperty in land into lIlere wperior
and inferior A Imp for Capitali"t:-i mrming
(In a large seale gin''; way to a taste for petit cuitun
hy poor T .. nllnt", In Eng-Iaml the L'l11dlnnl" a:; snell pay
Ill) sl ... "illl Tax to til .. hut here Land is taxed 011
the grnuml that tllt're i, an lllwal'lled ill('reuwnt based
on th .. Theory of Eeonollli('al Hent, and thnt
llneal'll .. ,l in('remf'nt lwloll!.{' of "IIf"'ial right to thl'
:-itat .. , While the Xatioualizatioll of land is hut a
:-:'ocinli,t drealll iu Eng'lant! an<l Europe, it iti in full
here, and f'urni"lw" a :;('it>nt ifil" )'n:;n It'ati.m for
,
l'eriodiclIl Hel'ision" awl Ell ham'emellt" Status amI
I'l'ivileg .. for III still the 11'1'.1' ('o\'ll .. n,toup of' English
:-iocial alTIIUg .. II1Puts, hut el'pry IIlt>rnlwr of
:O;ociety i" ollly a mohil" atolll, withont allY di!f,,)'''lIet's
Inarking him uff fmlll olb .. )'". "0 fill' liS tIlt' Htate i,
,'oneel"1l1"l. The :,\lidtll .. ('Ia", i" tl,, haekhollt' of
Engli"h :-;lll'rellllLe),. hilt ht'I'I' is no 1'00111 for a
('III'" Iwtw .. ell the :-;tat .. alltl thl' 1'001' Tax-
I'lIyer". Thi" l"!lange of frollt i" a ('\lriou" "tntly h,Y
it,t'lf. Fur Ill)' pre"ent it i" not IW('t'"ary to
"itp 111111'1' (If ('0111'"", if Politi('al E,'ouollI.'" i,
:-; .. it'n," of g"llel'ltl amI ah,olllt. Trlltl"" lik ..
or .'\.-trullOIllY. the tellllelll'), nott'd ahOl'" to 1"1>.h it,
to tllt'ir 1":,.:i"111 ,'olll'iu"ioll" iTl all tim .. " a III I
,.Inc .. ,., t'I't'U whell English ltalt mi,lwy iii
vtheir "meti('RI IIpplic'lItinn of the,.e priu('iple" .s 111-
tt'lli:.:ihll'. allli mil)' \){' t'1 .. U wi,,'. "all hI' '"'
douht thnt tittl'" I\'!t" tl,", gil'" .. !fed to tI",,, pri'lI'i-
"Ie.< hUlH,tly Iit'lip\'e iu tl,, "('it'utili,, nwl aio,,,llItl'
dllll1\('t.) (If till''''' E"ouoll I i(,111 ,'olll'imioll,. Rut it
)Xlll.\X L ECOXO)[Y, 5
IS cprtaiuly II fair mhjPet for considpration whether
this belief is well-f'JUlllled. If in Politics and Socia I
Science, time and place and the endow-
ments and of men, tlIPil' habits and custom",
their allli ami tlwir IH'pyiou,
have to he taken into acconnt, it IUW:t hp ,trangt',
indeed, that ill tltp economical a'ppd of 0111' lift', OIlP
set of general l'rilleiples hold good ('\PI')"\lhe1'e
for all time alld place, ami f(I[' all "tal;es of C'iyili7.atioll,
This ('ollfliet \I'a" OIlP of t lip l'ea,OIl,; whidl imlnep,1
me to takt' up tlii, 'llhjPl't for l'OIl,.,id,'mtioll on the
pre,:ent oeea,:ioll.
Anotlipr !'<'lbOIl W]lj(,1t al"o illflUl'Ill'l'd Ill(' in the
('hoiee of tlli, 'lIhjPd \Ia, tlip fact that, at this timt',
when all >lp]IP>l1 i, IwillC: lIladl" to tile popular will in
two gn'at "OJlllIlllllitip" to dl'clan' ibwlf. till' (Jllei'tionR
at is:<IW 'Il'l" 11101'1" E('ollOJlIieal than Politi('al ill their
eharad('J'. The (h'p;tIlJ" of ('ohtlen and Brio'ht of
>- ,
Hicanlo alld -'Iill. Unit tilt,. ci\ilizt'd world \\Ould, in it
few year" \I'itll OIlP aceol'll pmhraep tllPir principle",
have 'not IW(,l1 realiz .. d. In ,\nwric;t tlip arp
solely economical. ()IW party tiLYonrs frep tnujp, tllP
,other fa \'Olll's I'rotedioll, (JIll' party fa \'Om, i"il H'r }.pgi.;-
lation, tllP othp]' dPllOllll(,P,; it. hI Enghmd a 1:<0, as YOll
are aware, the IllP""lIt Prim(" -'IiniRtpr has tlpclar!'([
himself in favour of what is ('alip,1 Fair Tl'atl!', which
is a modification di(,tatpd by Politieal and Economical
cousidt'rations of !lIP ('xtreme doi'trillP of Free Trad!',
E,,"AYS ()'i l'inUX
with a vip\\, to r.-"tril't the f['ppdolll to who re-
ciprocate it. amI til(' Liheral, harp deuounced
bp,;e frolll orthodoxy a, unpardonahle ht-I'e"y, Evt'll
in Ireland, the l'olitical issue i" rt-ally at its ba,e an
Economical Vi"put(', which celltr!"" rOllllrl tht' question
of the extent of the rights of Primtp l'r0l'f'lty an(1
Fre ... t'ontl'aet as between tllP Lawllon\" and tllP
Tenant", :-:imilarly, here in Oil\' own ('onntry, the Cm-
ft'Hey i" also running a tilt again8t Eeollo-
mica] Theol'i,t", and holdly deni", tilt' nui ver"ality of
the e'lnatioll of :-:UI'I,ly and Ilelllall\l :I, the be"t amI
PlIly regulator of tlk t'xl'i 1,1Il gr \',]llb uf tile pre-
l iou:; l\letak Un tlip ('()ntilwllt of E\Il'ul'e, aud ill
the Engli,,11 ('olnnie", tht' "'IIlP prot,,! i, b('illg l'l'adi-
(ally llrgPl1 ag'aim,t the ('xtrt'mp rigolll' of tl,, t'url'ellt
t leorit'" of orthodox Politil'a I Eeonolll,'" The Alllt'ri-
([lIh di'lJlltp the right" of thl' ('bine"p to ,pHIl' in tI'!'ir
Coulltry. tlw AIl"traliall:' f",n thE' "mil" :,,,ar(>, and t'IPll
ill Eng'1and, Ipgi"latioll W,t- ('olltE'lIll'latpd ag'ail",t t1w
i:llmigmtioll of aliell .IE'I\'';, 011 thp gl'Ollud that thE',\'
\n'rE' likE'I,I' to l1llderhid thp indig(>lIoll, lahourpr, Tb ...
'.t'radt',;-l'nioll aml Strikp>" and the Kuig'll!' of l.aho\\]',
pI' wllich IV" hayE' heard so IlItll'h n'l:l>lltly, fUl'Ili:,h
another form of same general protest. This ('011-
r iet of praeti('e with theory, uot in one, but ill all point"
l,ot in one pla('(' 01' country, but all OI'e1' the world.
"itich Contemporary fnrni"hes
It',lOther l'ea,on which appeared to me to justify a
lNJ>JAX rOLITICAL ECOXO:\l.Y. 7
reconsideration of t h(' lillestion on broader lineR than
those, you will find pnlllleiated in the ordinary Text
books.
In justice to 'OlllP of' these it mw;t be ad-
mitted that they ha \'1' tak!'n good carp to prevent many
of the whit'll are popularly entertain-
l<I about the flhsolute and general eharacter of the
Economical Doctrines taught by Hlem. ;\1r. John
;-;tuart Mill, for instance, states in his prefuce that" for
practical purposes, Political Economy is inseparahly
, intertwined with Illall)" other branches of Hoeial Pbilo-
Except in matters of lIl!'rp detail, there are 1>pr-
haps no practical 'lllPstions, Pl"cn among' those which
approach nearpst to tIll' charadpr of purely Economical
questions, whil'h adillit of being deeided on Economical
premises alonp." Yon will abo reeollect that one
('haracteristic featllr{' of "ill" work i" hi" frank
r .. cognition of an p""putia[ difiprellce between thp Laws
J'plating to the I'roduetion of ""{'alth, which hp ([pems
to be Universal and not ari,itrary, allli those which
]'pgulate its Distrihutioll. The La.ws of Distrihution,
-'[r. :Uill admits, II]'P pltrtly of humall in4itutioll. ;\11'.
and ::\lr. Cairn> more 'clearly e'"en thall -'Iill.
affirmed the hypotheticltl charactpr of tl](' ;-;('i{,lll'p .
. 'lr. :HiIl content('([ himself with the nece'-
,;ity of verification to establish" the ooumlness of thp
hypothetical but ::\II'. ('aim" went fur-
ther, and that "Economical Laws are no
8
ESSAYS O'i I'iDIA'i
assertions resl'",eting tlip chanlctt'r 0)' ,",p'I'lpncp of php-
nOInplla, and that tlwy can neithp), hf' f'slablished 0)'
reflltpd hy or DOCllmentary E\idenc",," It
is truI' wm; not th", po;dtion of tlw f'ariier Teacher",
.\dam :-;lllith. Hicar(t ... :-:;",nior, Jame,.; M'Culloch,
amI wh" llpH'r douhted that ill all their rea-
,",oning'" tl.f'Y WPr\> tlpaling with HUlllan Hf'ings AS they
ill'tually pxist. Allam :-\rnith, for instance, h",lie\'ed
t1lflt XlltUI't' had made l'rOl'ision for :-\oeial well-heing'
by that principlp of t hI' Human Constitution which
prolllpts f'Y"'!'} lllall to ht'l.ter hi:; ('omlition, and in
aiming at ill<li\'itlllal goon., evpry mall is led hy an
invisible Haml to) promote genera I c:""cJ. Human
Institution,.; only intf'l'fpre with tlli- h>nclency, and
when all n,,.traillb are l't'tl.I1\I"1. t I,, ,;lwious and
simple Sy"tPfll of natmal Lih .. rty itself,
Rical'n.o ami we!'e, if l"J,,,ihlp, still mOl'p
dognlllt.ic anrl alN,llljp in tht'il' "''''''ltion of tlle,.;p
nece,;;;aI'Y tendt'lll'ips. find mad" li" "lll)wances, or at
t.he hest gal'p ;;cflnty rpcog'llitioll t". t hp one-sided
"hamctel' of their l'l't'mi;;",,,, 'Jr,
thought that the whole :-\eiPllee could, like
1)(' reduced fi'om fom llXiomatic It will
he useful at this tn note tht' :Cl'lwral f",aturt's of
thp,;e assumptions of dw earlit'\' E('ollorni"ts, whiel.
they heliel'('rI to ht' necessarily amI nniwrsally true
as the Fir,;t law of that horlit's move ill
straight lim',., or thl" FirAt Law of I'by;;ic,;, that they
':\DIAN POLITIC,\1. ECUXOMY.
!l
attract. pI1l,1i other dirpdly ae., .. ,..ling to their mass, [mil
inversely ael'ording to the '''Iwlrp of their distall"".
These as"umptions may hI" till', hriefly stated :-( I)
that Xatillunl Economy j" p,,.,,utially Indi"idllali"ti,'
and has 110 ''''parate Colledi,,' a:'l>ect; (2) that tl",
individual, or typical Economical IIlan, has no de"i!'!"'
hut that of prmlloting his owu or at jf':\,j
that tbis is hi" st.rongpst Inoti,'p I'ower; (3) that thi-
Self-interpst i" hest promoted hy th!' l'rodlll'-
tion of Wealth, i.e., articles with \'nlne in ExehaHgl'.
at the lea"t. trouble; (4) that sl!l'h l'ursnit of PriYHlt
gain hy eaelt imlividllal prOiII otp" best the g'f'nf'l;d
goo.l; (;j) that tilt' fr .... and unlimited Competition 101
inclivi.lnah ill tllf' rac .. and st.rnggl,' of life 1.1,1' Oldy
safp allt] uatura I nglllator; (G) t hat all custolllary 1111<1
Htate H('gnlati"ll is an elle)'oaehlllent on natilia I
Lih .... ty; (i) tl,at evpry hl(liyidllal knows hf',t I,i,
Intf'rest, and I,,,,, the eapa('it,Y a 11(1 dp",irEo' of act illC:
acconling- to tI,i, kllow!t'dg(' : (H) tllllt t1wrl' j", J>l'rf .... 1
Fl'l'etiolll a\l(l E'Illality in II,, power of' contraet J,..-
tW(,l'n indil'idn,t\" and illdi,idllal,,: (!I) that. CaJ>ital
Lahour IH!' alway;; fr .. e and ('I'"d" to IlIIlY" from PI,..
I'mployment to another, wlll'l'" 1",lh'r j'f'lIIll1leratiOll "
f'xpf'pt.ed; (10) t.hat ther!' i" a IIlli,'pn'al tf'ndf'ney "I
Profits ami "Tagps t.o a ""llIllIon Ipl'('l; (11) tl,a)
Population hm(l", to ontshil' t], ... IIIt'am of :
lllld that n"rnand ami tend mutu-
ally to adju"'t each oth!'r.
ESSA YS 0:01
These assumvtions lip at
tr .. atment of tlte
till' root of dogmatical
It net'd not he Nllid that
ti",y art' literally true of no t'xi"ting COIIUIIlIuity. To
t lit' extent that they are IlJlproxitllutely trill' of lUI)" "tate
of :-iocit'ty, the ,'alid
of its Economical EI .. n then they furni"il
IlO snggpstion as to its dynalllimi or (le\'l'\o1'-
1I1I'1It. As tht'K" assuml'liolls (10 not ahsolulply hohl
good of l'\'en t hI' I))O"t adl'l\fll, .. d it
that in Societies likt' ours, tilt',\' art' dliefly
h\' their "'ith lI" an ;\1 eragl' indi I'idual !lIan
j" to II large extent, the I'e)'), autipodes of tlo .. t'eono-
lllical man. The "'amilyaml th .. ca"te are more 1'0\\'1'1'-
I'll I than the Indil'idnal in det.nnining hi" position in
Iii... Self-intf'l'f'st in the "halle Ilf the dt'sire (If Wealtll
j, not absent, but it is not the ouly nor pJ'ineil',,1 motor,
The Pursuit of Wealth is not tit' only ideal ailllt'd at.
There' is neithpr the dpsire \lor the aptitude for frpt'
alld unlimitt'd ('ompetitioll within (,Pl'taiu
I 'I'e,letermiufod or groups. and State
l1egulation are far mort' powerful than COIllpetitioll,
:llId Status mure (\ecisin' ill influence than Contract.
:\ pither ('alii tal Tlor Lahour mohile, IDld enterpris-
illg and intE'l1ig'ellt enough to shift from l'lael' to
1,lace. \\'agp" and profit al'l' fixl'd, and not t'llI"tic
aud respom,iw to change of drcumstances. Population
fo\lows its oll'n la\\', being cut down by disease and
famine, while Production is almost the burn-
POLITICAL E('u:-iO:\lY.
11
per harvest of Ollt' yt'ar JIPt'dp<\ to prol"idp agaiw;t
the of ali el'llat,. had III a
f'ociety so con"titutpd, tilt' t<'nll('neie, a8"IUlll'd as axio-
matic, are not ollly inoperati\'p, hut arp actually dpfipet-
pel from their l'roperdirectioll. as well talk
of the tendeut'Y of mountaill' to I,, wlh,hed away into
the sea, 0)' of the valleys to till lip, or of the Sun to
get cold, II" j'f'ai<ons for our pnl<'ti('al l'ondut't within a
lIIeasurable di"bmce of tillie.
This hypotheti('al chanu:t .. r of the <'lItir<' fabric of
Doctrinal Economy has been mo\"{' or Ie", freely ),(cog-
lIi:r.ed, as a11O\'e. hy ::\[r. :\lilL ::\lr. Cairns, and
other Teachp!"" of l'olitil'nl E"01I01I1)"; and in our OWIJ
tillle, ::\11'. has g'(llle f'lI' 11" to aSl'ert thnt the
traditional "y;;tPIIl rpsted 011 ""'1I1l11'tions which wt're
not only not tmC' g'Il<,rally. hilt \\'ere trup only of
England of tlu' pre,ent day. lit' ('all, it the Scienee
of Bnsine", dOlI(> in alit I t r"diug Communitip,.
It dops not explain the Et'olltlllli,' IiI',' of' Pllrlipr tilllP'"
or of our OWII times in other iOll'. It i" ill'lIlar, ami
ba,; not obtllined general J'P('oglliti"lI, hy rea,;on of it"
h"ing chiefly a. eonvpniput ",'rip- of d"dudiolls fmm
",snmed aXIOm" which a ... III lIlall), tilllP" and
"Iact's not tnlt'. ami arp "II" trl['> 1il Eng'land.
where Capital and lM'lhour "'111 freply transport
them8eh'es from one emploYiIlPllt to anothpr. lUr.
Sidgwick, anothE'r contemporary writer. has express-
ed the view that the abstract method IS useful
12
only for tIlP ,tntiea\ "tndv of Eeol\o))IlY. and that
its ('olll'lu,ioll';, ('I'ell within this prolill<Y. are ouly
hypothpti('aliv mlid. In th, tlynalllicni ,I wly of the
I'mgre,'" "t' \\'.-11ltll. tll(' 1";lIue of tile d .. dll..ti'"e method
i" allllO,t lIil. :\11'. ('Iiff Lp,lip Iws I'xIJI(>,,"'\ himsplf
to) tI,i" writ"r. j" thp rp.''illt ur a long growth
ill I\'hidl the]'!' II;\>-' he"ll (,Olltilluity alld "I lange, 1I1H\
tl,,"' 1'('OlIOllli .. ,irlp "I' t hi" dHlnge is ollly a jJarticular
a'ppd. TIlt' Law, uf' Progre,.;, in \\' e:llth mll"t
he Rought in th .. hi,.;t,.I'Y of thp gpupral Evolution
whieh i" ,lift")'f'lIt ill rlifi'('rehl euunt)'i .. "
Jel'om \1";" 1111,,(\ with "\H'b ,\e,.;pair hy the "teril ..
dlllractel' of tllP hypot.het.ical "ystem that he thougllt
t hp only way to ('me its dl,fpd" was to i1iug awny, on('"
amI for '.\"1'1'. 1'1'<]><I,.;t",1'Ou:; a"llllll'tions or t ht' Hil'al'dillll
;O;('hool. rt will he thw; ,PPlI tlwt ill 1 hI' lallu of it>'
hirth and higlw,t de\'elopllH'lIt. th", ('laill!> 'If 1'olitieal
E('onomy. a,.; ol'llillarily tauQlit in hlll"e
hpt'n "f'I'iollsly (11lE'"tionl'!!, all'\ it" l'all1<' ;" a guide to
I'I'Hl'tieal ('on<1l1et grpatly <1i",'ollllte<1.
Yon will naturally ,l",:;il'l' to know how thi,.; rE'\'ubion
,)1' thought ha,.; h .... n hrollgl,t ahout in tile ('OUfse of a
hundred It'll!'''. It he('ollw,,; I1P('p";:1I',\ ill this ('onne,'-
tion to take a ),ptl'o"pectil'f' vi"w of t.h", j>r,,!,!ress of ti,l>
;o;ciem'p in "'t',h'l'll EuropE' during thp 1lH't two Of th!'e"
hundred yean'. a l'etro:;ppd will h .. l1' \1" to judg'p
for oursehe,.; holl' f'll' tlw <1 .. \",lo]>llIellt of the t-lcientitic
I:\P1AX P('I.I'I'W,ll. ECt)XO'IY,
Th('ol'}" of 1',.Iiti('HI J<>';II'lIIIY "all I", r"g'al'dpd as .. 1(11
11"1\' ('ollll.l,tp. Thp liHl'i ... "t ('OIl('Pl'ti"ll of Politieal
I",d I'pg-tud dliplh' to l;tyill!..! .I"WII tllP I'l'adi-
Cft] rill .. ,., of' 1,1'1II]('nt ('011(1111'1 1'''1' ,,,('It ),riult. inclilidllal
who dp,il'etl to he ri(J.. '1'1", ,tln,,),ti.)!] of it ", a
Pl'in('ipl,. ,,[' :,,,('ial Polity lIiI,' "It>!'!' ('1' If'S" ig-lIt1J'pd, '1'1,,
,,'pneral r""lill!..! ill tho"p daY" II'<'" tltat IIHllllial laholll'
" ' ,
Wi"; h(']OII tl,.. "I' a FI'I'I'II ,:I II. :'1]('11 work 1\'1-
don .. hy "I'll"'" or, 'IS II .. wOlild ill tili, ""lIntry ,["""ril",
tllPm, 1\\' t I ... Lower ('a_t .. >. .\ 1-'1'''('1111111 ('ollld Olll\'
dpyote ],i, ,t1t"lItiOll to .\g-ri(llltllrf'. "0111111<"1'('(' '''If I
\Ianufaetnrp' II pre httpr d'I, .. I"I'IIIPJlt" Tlti, ('il,(,llIlI-
stance aI,,, e\l,"'im; tit ... illtenli(t on ("'"'\ wlli('l, 11'11'
a COIllJnOlI I'allln of all .\II('iPllt I",tltlll..-.
those of' 0111' 01111 'Olll1trl'. whi .. 11 iii tl.i" n'l' .. ..t
lI' ... re Illon' adlallC'Pr[ tl,all tliP (frp,k. (II' .\1:ti,ollwd"lI.
or Chri,ti:1I1 lI"tioll' Oil (;I'"dll:oIl.\ ,,1:11(',
I"'callip .. rf,. ,"1(1 tl.(,11 Fr<"PIIiPIi. II'lto I\'nl'k,.r f;",
lI'ag .. s. '1'1",,, ,p .. killg' r .. fll.l!'p ill Hlleiellt "on,t
lowns and Holliall ("lollip". 1I(','plol)('<I II'PIII illto till'
Free com 111('1'< 'i,t! citif's or t 10" ,\, idd k .\,l!"" a hout til"
(imps of tl,p Crll,ad .. ,.. and latpr Oil illt" ,!..!Tf':tt mnllll-
"l'lItr",-, TIlf' di,('ol'prj"" (If tilt 1.-)tll ('\c'lItury
!..!ill't' It ,(illlld", to tradl". alld latpr Oil to, ('oIOllizftliOlI.
The larg'" illll'Ol-t, of (inlt! and .. 1' Itp1l'ed to
('llcourag" t hf' greater ('i 1'(' nla t iOIl of .\1 OIlP),. Tilt'
gTadual l'i,f' of Europeall ;\]oJlHnhi",. Hilil tlIp d"cay
of the Church and tlip Nohility. n'moled tIlt'
ESSAY" n:\ 1:,\llIAN
of Feudal alld raised the statm of' those who
wpre engaged ill ('''llIlIterce. Thl:' Rppnhlic8 of Italy
dpvl:'loped Ranking alii I Credit. It was when till'
national activity of Europe took sudl a yaried form,
,timulating' Agriculture, Commerce,
Ranking, ('urrellcy. E'I:"hauW', Co-opl:'ratioll, Taxation,
Colonization, und Forpign ihat t he ground
waR prepared for ;l ".v..;tt-'lIlatie Rtudy of the Theory of
the Laws which )'t-'gnl"tecl economical arrangement",
aud made nation" I'rn'l'pr<ln" and strollg. or the reyersp.
Aud the tinit 'l'e"IIl:iti\'e eXl'lanatiOlI attempted i,
known in hi"tory ", tllP .\Il'lTantile Thpor.\'. It is too
mlleh the pradi,'" "I' 'I'f'xt-writers to !TY down thi"
'Theory as OJle wlti"h ',mfoullcl",cl \\Tl:'ultl, \\'itlt "Ioney
aud Rullion. awl lllacl, tllf' "I' preciOll"
'\fetals tlw te,t of \atilllJaI I'rosp,rit.\. This I",
howeyer, an utterly IIlIfair alld one-si,].",l \jpw of thp
..;ubjeet. ,'fhe ]p3.iill!..: f"atme of the..;yM'lIl was thllt
it set !l higher qtlllP (III (',HIIllWTCp and ."anufactul'e'
than on agricnlture. alld ')]I Forei,gn 0\'1')' II'Jll1e 'l'radp,
It encouraged Export..;. hut desired tn ,I,pek Imports
with a view not to retain 1ll0nl"Y so mnd, a, tn de\'el0l'
Home ;\Ianufaetnrl"", La"tly, it I'l'P""rihe,j U'I" dire('-
the control of thE' :-;tat(' in the wily
domest.ic .'IIanuflldllr<'''; and E'nconnJO'ill'" ('ommercf'.
,.., "
Each i'tate competed 'rit h the rest in Fo]'('i.g'll .'IIarket".
and sought to seen]'(" 1\", 1II0st ad\'antag"Oll" terms and
it sought also to extend its ('oloDil:'s Ilml ])enennpncif's
I!I"DIA:-; I'OLlTlCAL ECO:-;OMY.
with a view to incr!';"'p t hp "phere of open ),larket, f()]'
its prOduce. It is ("llUIIg-1t to state that men Ii k ..
Colbert, and Olin')' ('romll'pll, Half'igh and Child".
('ol1ld not han' eu(t)urag-ed a which had IIO!
solid justifil'atioll ill the then ei)'culIIstam'pi' "I'
Enrope. Cromw .. !r" .'ia,ig'lItion Laws have IIdmitte(lIy
hef'n tlu' foundatioll of England's naval supn'm:J('Y,
:111(\ Culhert lIIade Frail"" ill his (by tllP 1II0st proSI"'r-
ous :-;tate 011 the eoutillflIt. He had a keen perceptif)1I
that. protectiOIl allll ,,)))trol were but crutchI''' t f)
teal'h thf' Xation to wa I k. all(\ that they should I,,
thrown away Wh"11 the lIeepssllry advance had bp,'"
made. It was I1J1(].r tl,, influf'nce of the sallie id,,:h
tbat the Great }<;;,.<t Illtlia ('ompanips of Holland,
Franc!', and Engl:Jnd \lpr" formed, and recei,'ed ti,.,
"upport of their n'''l',:-,eti ",. (rovernments. Charte)',
alHl HOlllltif's :11111 i"uhsidies, were freply
granted under the illfluellet' of the same ideas, and
help Rnd rt'gulatioll did thf'ir work remarkably well.
Tn the nt'xt ('entlll'Y tilt' natural progress of e\pnt'
mud .. :IIi,,, to 1 lit' ahuses of the old Systl'lll,
lind men began to f",1 tI." of freedom in till'
Economical as well ;1' ill tlip Political field. This 1I"0rk
of aml JIf'gHtive "riticisrn began in Eng!fllIi]
with the teadlings of Hohhes and J.ocke, but was morf'
earnestly taken up ill Frall<'" l'rt'vious to the Re\olu-
tion. The enOl'mou, :ifm,f's of . Htate control and
direction, of monopolie" find r .. "trictions, led to a rt'ac-
ti"ll III furollr of " t I,,'ory which wa, 1'0\11111(><1 on
tl,t' idpa of Liherty. III thi,
Philosophy iudiddllltl ""'" wa,.. IIIOreO\'(>l'. ,'o]lel-'i\ .. d
a' bping solely guid,'" hy Prhatl-' Jnt(>re,t. ,,"hie},
it \\'a>i I,p II 1 ((1",r,too,1 hett",r ror
than oth(>l's COl11<1 do for I ill,. aI.d the rellHlno1 of all
rr,trictiom' and l'l'"hihit iOIl'; hpcamp tlol-' wat('ll1rOl'd
o/" this :-;('11001. '1'1... I'l'P\i01l8 I'relonlll-'l1JnI'p of
:-;tat(> support in ti"o'"' of ('olllnlelT(> a 1111 :\[lllllJfa,-
t 11 res was condelllllf'd :11." a prpferem'(> for Agricultul"f'
'" the only tnif' ,;"ur"" of' all ",,'ealth wa,.: (1(>\('101'((1
illtn a mania. In gT"'l'i".g' th .. conception that mOIl(>,Y
aloue was not ",,'ealtlo. and that all "'ealtll i" ('rpate(1
Ioulllan Labour apli,d to Ag(>nts, peole nl1l to
t I" .. other extreme of' ('Ia,,,ifying Commerce ami l\lanll-
f:lt'tures along with ,,'ni('f' and I'rofps"ion": llll<l(>l' tlw
I"'ad of l'nprodudi\, L"hum. Til agaiw,t
Protection and prol.ihili,,". tilp extrf'llle dew II'l'lIt ,,()
f,,,' as to hold that (io'PrIIJlIl'nt it""lf lI'a, oull' " IlP(,P'-
"II'y evil, and that tl,, :-;tate I.ad no ('011('.'1'11 witll
Industry, a]](\ Illn,t ,'ontinp it""lf to it>, Holp fllllt'tioll of
k""ping th" pnhli" 1''''''''',
dumain of Natnral in E('onollli", 11':1, l'llt a I'llrt
,,"d pan,pl of thp gn"t rno\'empnt of Frepliolll ,,,hiel!
"lIll1lillatpd in the FrPIll'I, He\'oilltion. (lneHIII,\', (j llor-
lit'.)', and thp gr,"t :-;tatp'lnan Turgot, \lfol', , the
;)(h'oeates of tbb Xp\\ :";,'11001 of Thought wl.i,'h i, known
>1' the Hehool of tI.I'
IX\II,\X POLITICAL E(Y1MtlMV.
1I\pxt in onit-'r of timp wp
was thp riirpet l'roduet of the
of QueSlHlY. bnt ht-' improved upon Jtir- rnooi-r ':\lId
pxpospd the of that 8ehool in two IIIi}iottant
He established the faet that Agriculture was
110t tIll' only ,;Ourl ... of wealth, IImi that Manufadnres
and ('ommen'e were PljllfIlIy efficient ill this rpsppl't,
and that Xatnrf' hpippci lIIan equally in all the three
t1epal'tnlPnh;. \\"Ilile ;tceepting the laissez fwi1'C lioc-
trine of Free Tl'I1dp "' 11 general principle. 1\[1'.
was alive to the fad that restrictive Narigation Laws
had helped greatly to pnsure English Commercial
Supremacy, and lIe justified tIlese laws 011 the express
ground that llf'fellce was of more importaIlf'e than
opulence, and he advocated what are known as Fair
Tl'I1de views, i.e" dews which permit retaliation by Wily
of Diflerential Duties against non-reciprocating Coun-
tries on cOII(iitiull that such retaliation prorlnC't's its
desired consequences. Ht: also IIpproved of tpllll'ol'l1ry
('oneessions by way of :\lonopulies tu (,hartel'f'd l'om-
in enterprizes which illyohe<i risk alld eXI,ense.
Adam Smith never Economical frolll Sociali i
f'onsiclE'rations, and thus occllpied a position of admn-,
tage, which his Huc('e8sor;; gavp up by their too absulute ,
of his I have already spok!'n of
the rigid charadeI' uf the of Ril'ardo, Malthus,
Henior, James :\Iill, Torrens, :\1c('l1]]och and others,
and shown how this dogmatic fpature pro\'oked a
2
18
ESI'lA YS O:'i l:'i))! A:'i
reaction in England, at tin;t faintly l'f'pre,.;ented in tlIP
protpsts of John i':ltuart and 'II'. Cairns, hut more
decidedly formulated hy Ba;:!f'hot. l.e,Jie and
This strong reaction of feeling alllnng' English writers
waR due to the infillellf'e of t hI' gwat French and
German Teachers. Allfiw;t ('01111<' was t\w first who
denied the name of i'\ci"nct' to tllp doe!rines taught by
the Deductive School, and he elaborated his own system
of the Historical of Hesearch, and these hint"
were taken up hy tllP German and English Thinkers of
our day. Sismondi was the fin.;t eCOIlomical writer who
expression to the dissatidaction felt in France
at the conclusions of the English Economist,. He
charged the Imliyilillalistic School with tendencies hy
which the rieh lW('[lme richer, aJl(1 the poor were made.
poorer. He protested against the a hllses of the laissez
Policy, and itwoked Government intervention for
protecting the masses against tIll' clm,,.;eR, [lnd tllfe
weaker racps against the pressurp of the amI
more advanced N[ltions unrler tI,e j,pyilile of com-
petition. Sismondi dpclared that tIle I-'tate was not
nlPrely an agency for keeping jJe[l('p, hut that it waH all
organization for ,ecuring the pl'ogrpsH of the people a,
widely as pORsilllp, and for extending the benefits of the
Social l' nion to all. Another French writer, Duno),P!',
dpfined Liherty not as It merp negation of restraint,
but a positive effort to incrp/lse effieieney of Labour ill
all its
I 'i III A'i POLITICAL ECOl'"O.\IY.
19
Two AlIlPl'i"an Thinkpl's, Hamilton and Carey,
:;oumlpd tllP Jlotp of diffel'Pl1('p in 1II0rp distiul't
Hamilton wa, one of the FatliPl's of the
Auwrican Co)):;titntion. and lIP ,;tated that the Engli,.h
doetrine of Ahsolllte FrpPllom wa,; l'ra('ticable only if"
all Xations accepted Free Trade "ipws
and hp ,;uggestPf\ a :,('hpflIe of Protpeti"p Dnties Wlli,'11
\\, ... re later on adoptp,] tit ... If'afling feature of Ameri-
can State Tariff;'. Tltp Hailpybnry Profpssor JOllp"
had heli)rp ('arp,)' attaekpd the l{icardian Thpory "I'
Hent as being tm ... only of Farmers' rents, and n,
wholly inal'l'lieablp to the Inrlian Ryots' rent or th ..
:'IIday"r or ('ottiel' rPllt,.. l'ar .. y went further, and
dplli ... ,1 that thpl'P was any Economic Rent proper, all1l
l'ontellded that HplIt was only a remuneration, in th!'
same way as profit:" of past inypsted Capital or Laholll'.
CarPy justified Protection to domestic AgTit'ulturp OJI
the ground that tIle waste products of land l1lW,t
retm'\l to the soil to rpstore its powers, alJ(l 1 hi" rpstol'-
. atioll was not IH,,;sible where Haw Prodll('b w(>re ex-
ported to, alHI ('llllSnlllPd by dist.ant l'olllltrjps. Likp
the French Si,,'lIlondi, Carey regllrded tIlt' State liS a
('o-ol'dillating [>ow ... r in So('iety, whi<'h e1iPt'ked tllf'
tendt'ncyof iJl(lil'irlllals to st't'k illllnt'diatf' at HIt'
san'ifict' of ppl'manellt National intt'l'P,t,;, and lIe
as,wrted that Protection 'I'll" justified :IS Iwing the only
lllPans by which tlH' obstacle,;, thrown in the way of
younw'r and less advanl'erl ('oHllllunities hy more
20
adl"itneed XatiOlI';. eoulLl IH' ['PIllOlf'd. The immediate
loss to the Xation wa, like the "lIlll "l,,'nt. Oil tI,e
cation of yonth h ... ilidilid'Ulk whit,lt more than re-
pays itself ill lh .. lOllg \'1m,
Lik(" the [<'I'Plleh and Americall writer,. ti,e Italian
Economi,.:t" of the modern period, Giog>l '111<1 Lndolit,o.
also alll'o"atp(\ State Hf'g'nlatioll of [n(\u,trl'. ali(I
asserted the ])octrin(" of RE'laiility a,.: heillg all P"f'n-
tial factor of :111 t I'll<' E,'ouilrnit' Theor),. 'flip work
of positi\'e expo,ition \1'''''. 1,011'1 .. 1'. IIIO"t, t<l!t'(',-""fully
taken HI' hy tllte' (;,-1'111"" l'l'Ofp""ol'''. Mnller til',t
that Adalll SIIIitl,', ,,,,1f'11i. iI" plahorakd
n, ,
by his mor!' dogmatic dif,<,il'lp". "iI" pS"("I1tiall)' EII,g-
lish and insular. It Sl1eeef'<1l'd in ElIgland. Iw,'"u",'
th!' national lif!' of England \\'"'' l'rp"]'I'ptl inlad
by its favoured situation and p""t II i"tol'Y a'" I ('011-
s!'rvatil'e instinct", while it wa" nn""ita hiE' to the
Contin("ntal Countries, bl'('au>, ... with tllP)" tllP 1'1'1'-
sE'rmtion of tilE' Xationlll ('xist("lH'e \la" " "lIiljf'd of
grE'atf'r importancE' thlln IIlt'l'e ill(lilid"al
It waB th .. of Li,t. which ga\e tl, .. 1'"II,,t
E'xpres"ioll to this rE'bE'llion Flg-ain"t tht' orthodox ITt'E'!\.
Hp urgE'd tlillt tilE' perman("nt int("r("Rts of \\'1'1'('
not always in harmony witll tl,(" present Iwnefit of
individual,;. well-1willg' dot'>' not only
in the crE'ation of the lJigllP"t quantity of wE'altl, lll("a-
8ured in E'xchange valtw, independE'ntly of all nuiE'ty of
quality in that wealth, but in tht' full and
Il'iflIAN POLITICAL E('Ul'i!nlY.
development of all prod ueti \'t' po\\,pr,". The i'i ation's
Economic !'ducation is of fill' ilIon' importance than
the present gain of its individual lllPIll]1Pn;, as reprp-
sented by tllP quantity of wealth lllPam!,pd by its valu!'
in !'xchang!'. I n a sOllnd and 1l0l'lll:l1 ('olldition, all
the three departnwllt,; of natiollal aetivity must he
fnlly dew!ol'Pcl. ('Ollllll!'!'!:!' aJl(1 "lanufactures are, if
IllO!'P lita] ill th!'i!' bparing on th!' education
of the intelJigt'Il<'P awl skill allel Plltf'rl'rizp of the )\a-
tinn than Tn a pIll'P]Y Coun-
try tlIPrf' is a tpndeney to and absence of
entprprize aud tl,f' rptention of anti'lllated \lrejudiees.
The function of t.hf' State is to IIPlp those infiuencps
whit'h tend tD ,;p"llre i'i ationa! Pl'ogn'';'; t h rongh the
"e"era! siagf's of growt]" and adopt Frcf' Trade or ]>ro-
teetion as eil'l:tllllstanc!'s Illay requirp. III this vi,,w
Free Trade lllay be good for a (:ountry like England,
hilt not for AIllf'riea and (TpJ'lnany.
The snbs!''lIlPllt Hennan flll'thpl' plabol'ated
this historieal lip\\,. amI Iluder the of the
sl1ccess of tlw ('omparati\'p metllOd in Philology and
J nrisprudence, to reeonstrllct Economy by the
hf'l!, of tIl!' IlP\\' method. Haw. Kllipys. Hoschel',
HildE-brand, "'ag'lH'l' ami otl'Prs workpd Oil tJ,,,,,,, lines.
Thpir illfinell('p ma(lp itsplf ff'lt Oil English thonght,
and ),p"di" and ,IPI'OI" \\'PI'P dil'Pl'tly infiIlP1H'e(1 hy
thf',;e tpaching", Tlwy arl\'o('atpd that Eeonomy waR
only ont' branch of Sociology, fIlj(1 likp all Social
ESSAYS OX INH!.\:"; );('I):";U\II(',...
:-';ciences, it mnst be studied hoth in it" alJ(l
dynamical and that the ha,i" of a I'ypotlllti-
("al economic mlln, gnided 80lely hy one l1Iotil"l-' of
:-;elf-Interest, mnst he giren up, ami IIIl1n ht i", hotl,
and altrnistic, possessing right" well a, hei".!..:
bound hy duties, must be ,,(ndie,1 ill History, hotl,
Alleient and :Uodern. In bri ... f, thi, German :-;,",,,,<11
n'gal'll>, tlmt ['nh-ersnlisl1I nnd l'erl'l'tnaliHIll ill \<:("0110-
lIlic Doctrine are hoth ullscientifie al1(1 untrue.
'fhi,; l'E'sume of the PR"t !Ind eonteml'orary hi,toryof
the growth of economic SciencE'S in England, Fram'e, (;"'1'-
many, [taly. ami Amerim will tllP student that
modern EUl'opl'an thought doE'S not at all ('ountenam'p
the yiew of the English of tl,( Hienrrliall
Bchool, that the Principles of the :-;('ience, a" tlw)' hall'
enulleiat ... d thE'm ill tl ... ir Text are nllil ... r"aliy
nnll neee""al'ily tru ... YOI' all tim ... " find plllt'Ps. find for
all stage:-: of A(l\"auee-Jllellt. :\Iodern Thongllt 1:'
werillg to tb" cOllelll"illll that the lmlil'idual find hi"
aI''' not tbe ('entre round which the Theory
should 1'e\'oll'e, that the true centre is the Body Poiit;(,
of which that IIHIiI'i,lual i, a :\["miwJ'. and that ('oll ... c-
tive Defence and W .. ll-h",ing, I-\oeial Education find Dii'-
e;l'line. and tl,e Dn!;",,,. amI not lJ1E'rely the
or men, mnst be talipil into !lecount, if the TllPory is
!lot to be lller ... ly [loI,ian. ThE' :\Ipt),o!! to hp followed
i" not tllf' Dedndil( hut tllf' Hi"tOl'i,'al :\[pthod. whieh
ta \<"8 "econnt of \lit' 1'",,1 in its forPl",t of tl,p fntnrE';
Df[)IA:\' POLITICAL 23
and and not
conclusions of Economical i"cienet'. are
who to g"et O\"E'!" thi, diflieulty by
the i"cience from what tlley are di';J)()serl to eall the Art
of Economy. This dim!",,' of Tlteory and Praetiee is,
however, It error. whie\t the
i"cience to the sterility of all ide'al drealll 01' a IJlIZzle.
and condemns the Art to tIll' IH),;ition of a \"\lIe uf til!'
tlmlllh. Theory i, only Praeticp. Pral'ticp is
Theory studied in its relation to l'l'Uxilllatp l'alhw,;'
'flIP Practice predetermined hy UIP T),t'ory wllich
tests its truth, and adapts it to different ('ouditions by
reason of its grasp of the deep-s'ate(!. l't'l"lliauPllt, and
\"IHied hasal truth,. I hope thw' to l"l\e ,),0\\11 that
the natmf' of the ,mbject itself as a hrlllH'I, uf :-;"cial
;';('iencp, which i, hest studied hi,toril"ally and lIot
deductivply, tit .. actual Pradll"e of t],,, 1Il0"t Ci\ilized
Xations and the history of t of its Theury
giwn above, alikp estahlish tit., dodrillP of relativity,
ami the predomillallt dailll of ('oll"di\"e \\'elfilrf O\"er
Individual Illtere;;t;;. >IS the I'rillcilHti f"atmf's in which
the mimI;; of the I,r",;"nt day cllietly differ
from the Economical Writpr,; of tit" ()[d :-\chool, with
their (t 1J1.sed on indil"idual splf-
intere;;t ana nnr",;trided l"ollljwtitioll.
\\T e have next to cOll:;i<l"r tll(' lJearing,; of thi, en-
larged view of tllP ill its Indian aspects. The
charactpristies of uur ;';ocial Life are the pre\'alence of
24
StatllR OVPf COlltract. of Combination on'r Coml'E'tition.
0111' hahits of miml are conservative to It fault. TIlt'
aptitlldeR of climate and soil facilitat< tilt' production
of raw materialR. Lahour is cheap and plentiful, bllt
unthrifty. and unskilled. ('apital is 8carce,
immobile, and ('o-operation on a large
Rcalp of eitllt'f Capital or Labour is unknown. Agricul-
turp tilt' chipf support of nearly tlit' whole popula-
tion, Hnd this Agriculture is curried on under conditiolls
of uncertain rainfall. Commerce and :\lanufactures on
a large seale are but recent importations, and ull illtltb-
try is carried on, on the system of petty limning', I'P-
tail dealillg, and job: working hy poor people on bor-
rowed capital. There an almost complete abspn( ...
of It landpd gentry or wealthy middle TIle IUII<l
is It monopoly of thp State. The dE'sirE' for acculllula-
tion is very weak, peace and security having bePIi
almost unknown over large an'lls for any length of
time till within the last Century. Our Laws and [nsti-
t.lltions favour a low stan<illl'(\ of life, and encourage
sub-division and not concentration of Wpalth. The reli-
gious ideals of lift' eondellln the ardent. pursuit of
wealth as a mistakp to IlP ilmided far l'ossiblt'.
These are old legaeipf; and inhpl'itt'(l weaknpsses. :-;tag-
nation and d!'pend!'I1I'!', df'jll't'",.;ioll and Jloverty-these
are written in broad charaeipr,; 011 the face of tlw lanel
and its people. To tht'Re must bp adde(l the economi-
cal drain of wealth and talpnts, wlli"11 Foreign subjec-
I:-iDI.-I:X POLITICAL ECONmIY.
25
tion I'ntailpd on the country. A" a compensation
against all thesp influences, we have to set
off' the advantage of a frl'e contact with a face which
has opened the Country to the Commeree of the world,
and hy its superior skill and resou\"('ps Ims developed
communications ill a way previously IInknown. If we
wish to rl'alize our situation fully, \\'1' lIlay not overlook
this factor, hemnse, it I'eprl'sent" til" beam of light
whieh alonp illumines til!' pl'l'\ailin:..:' (lal'knesR. It,
('annot wpll he a men'l accident that t.hp ,lpstinies of
COllntry have heen entl'llsted to tlw gllidance of a
Xation whose strpngth is ')lposl'll to all
Ollr weaknes,.;es, whose enterprizi', chiI'll.\" ill ('omn1Prce
anrl )IauufactuI'Ps, knows no bOIlIl<l" who,;p Capital
o\,prflo\\'s thp world, among whom ('ontrad has largely
sllpprseded Status, ltll(l ('oJllpetition a III I ('o-oppration
playa predominant p:tlt. who,,!' \'iew of life is filII of
hope, and whose powpr, of organization haw, ne\'er
heen sllrpassPd.
The first point which ilill"tl'fltps t lIP <1iwrgence \)(>-
tween the orthoclox English doctrine an,) thp pnlflrgerl
views I have attpmpted to spt forth, a" ehara(tel'izing
tIll' lIlllre d{'wlol'pd morlern ElU'opean thong'fIt on tit,.
,nl:ject, rplatps to the sO-l'llllen system of the territorilll
Division of La bour hy \I'hi('1t the orthodox
assign to the hHC'k\\'anl Torrirl Zone Rl'giolls of Asia
tltp nnt.y of prodll('ing Hllw -'latl'rials, and (laiJlJ for the
au\'anced EUfOpl'all Tl'lIlppratp ZOllp ,'ulllltries, the
26
ox IXIlIAX
work of transport lind IlIAlIllfadur .. ", 'b a of
11100111' in production whieh i, fraught with th .. higl, .. ,t
advantage to lIil, and is almost It l'ro\"i<!plltial (li'l'ell-
,ation, against whieh it would h .. foolish to )'f,llfl. ()f
eours .. , as fal as the natural aclvanblge:, of ,Iilllate and
situation forep out' hAnds, eeonolllieally h, ... kwal'd rae .. "
mn,t submit to sitch an arnlllg .. ment, Iliit it is fairly
ol'f'n to qu .. stiou wh .. ther tlwrp is any stH'" inf'vitahlf'
nf'cp,,;ity whieh jnRtifips a lillf' of sf'paratioll. whidl I",,,
a tpudeney to 1I(,f'entllat .. natural df'fieiew'ie,. fl!l(IIlHlk,'
them a soure .. or jlprmanpnt wpaklHo'''''. (I) In tit('
first place, the Torrid Zon .. people lIlay fairly appeal to
past history, when their skillpcl pro<lueb fUlI",1 II I'pa<l,\'
market iu temperate kingdoms. and ex('itpd snell jeal-
ousy as to dietat .. j>rohibitin 8llll1ptnary I"ws hoth ill
ancient ROllW and in 1lI0dp!'11 England. (2) 'I'll .. )'
may also urge thllt tllP natnraliltness of tlllllg' I'P'I'Iil'f'''
that the manllfadll),{" ,llould spring Ill' ,,111"1'1' tit" raw
grolL ;t lid wlt!'I''', hf'si(It'", t hf'],p i" (lpllIallil
for tht' pro,lne!', rather tlirtll tllnt I>nll-:\"
g'oods ,hollid tr;lll."portt't1 many tholl'aIHI, of IIlil ... ,
01'.,1' lallli a lit I ".;t. ali(I I'f'-eollsigllerl 'nllw 11;1\'
',hack. (3) 'I'll<' in ianJllr of tplIll'f'ratc'
l't'g"ions a]'p all 1I1odf'l'lI gTowths dne to tilt' "1Hluy-
JIlf'ut of Stpam :'Ila('hinery. and till" abnudancE' of ('ht'ap
IrOll and {'oal. This is a 1'f'al acl\'antagp, amI to hE'
facf'd, hut if it ('lUI b .. faced, tllpr!' is no natural incon-
gruity in an by which Imlustry would
INIHAN POLITICAL ECO:'OO)I),.
27
return to its ancient hOfll'" with It double saving in tim!'
and cost. (4) Neitilt'r ,\11'. Adam I-'mith. nor en'n :\II'.
John I-'tuarl ;\lill, recommend ahsolutp freedom ill snl'll
matter:.:. Adam I-'lIIith was a Fair Trader, and )11'. :\Iill
distinctly an eXl't'ptioll to the wneral rul ...
of Free Trade, where time i,; required to see whethpl'
nt'w induRtries art' or are not adfll'ted to the natund
resonrCPR of llPW ('olmtri .. ". 'I'll'" Int .. Iw-
tween :Ul'. BIHille find ,\11'. (;Iad"tone ,hiefiy turnE"[
upon this point. ,\11'. Blain ... ('Illitl'llfling' that, with II
large Continpntall'Olllltr)' lik ... \mf'l'ica, with all "llfIdp"
of climatp and ,:oil amI 1""itil>li. tl\(' ('onrlitioll': of tl\('
prohlem were (liffprPllt 1'1'1'111 tllll,-f' of nn isolate,[ "lllall
territory like Eng-lam!. '1'1,, .\ll:.:traliall Colonies al:.:o
justify their depart11l'p fro", tllf' ol'th))(lox policy on thi,;
same gronnd. [ndia Tilll\" filirly dailll the Iwnefit of
the experienee an<l 1'1':IdiC'f' of the,e splf-governing
('ommunitie". Rnd df'll;alld hreHtldng tilllf'. (5) It j:.:
flll'ther to Iw noten that ,ueh a di,'i:.:iol1 of l'roduct.ion,
if permanpntly .. d. ('onRip,'ns to Rn
. try which is under tlw hallP of the Law of Diminishing
Rptul'lls, while the west of E1ll'ope appropriates to itsp]f
thoRe forms of Industry whielt art' not suhject to any
such law. The ortho(lox ,i"w tlllls condemns thp poor
to grow still poorpr. and hpl)'!' tl,, rieh to hpeolllp
richer-' it gin'til .1II11l'li to hill! that hath. and taketh
away from him that hath !lot th, little that be hath.'
(6) Lastly, \,poplp for!.!;f't that tht' Agricnltural Industry
ON J:\DlA:\ ECO:'iQ)IICS.
ill the Torrid to work un(l"r the
tage of an uncertain rainfall, alld Ruffer from famine
visitatiom, which, when tlH'Y COlllp. l'flral:-'ze Proriue-
tion, and condemn millions to violpnt or delltli,
A ihlp co-ordinatioll oftlw thrpp-folel fonlls of
activity, pvell if it lw not illllllpdiahly Illo,;t advantage-
to inclividnals in anyone jlpriod, i, a permanent
Insnrance against recurrent dallg'er:;, and as
:;nch is economically t1lf' mo"t IlPllefi('ial (,OIW'P ill thp
of the Community.
(2) The point notiee<l aho\'p ha:; rt'fel'pnce ehiefiy
to Tradp. III dOInPstie interebangp the
same law operates. all(1 pvery whieh desires pco-
nomical admnce has to takp can" that its nrban popu-
lation hear an increasing ratio to its rural masses with
pvpry admnce it seeks to makp, -:\lr . .John I"ttuut :um
hail expressly lai(1 clowlI that 110 AgrienltnH' ('an he
I'eally productive whi('h divol'l'\"d from a Ilpi,Qhholll'-
in!; non-agrieultural lIIarket representNI by Thriying
Towns amI l'Hele\' there a sort
of I'urlp mad\" in this direction. when the
I '0 lIl't s of tI,e Petty afi'onled many
of urban actidty ill illfln4ries patronize(l hy the Court
find its dpppndent;, -'fr. -'1i11 sng,gests that in the
ahsence of slwh near markets, the next available suh-
slitnt" is fI largp pxport trade to Foreign Countries.
This snhstitute cannot, however, he acceptf'd as really
answering th" purpose in \'iew. TIle progress of rura-
1:'I'IlIAX POLITI(',\L E('O!';OMY.
lization in llIodt'rll [lldia IIwall, it" l'n,ti("tion. i.e .. fl
],0" of pOII,pr, and intplligP1H'''. find ,plf-d"p('tl(lpllep.
a tli"tindl\" l'f'trogT1Ulf' 1110H'. Tltp gTowtil (If
till' and of th" ft'w 'Lilitnr)' and Hailway
tion" j" not pnotlglt to couttiprhalanC'P thp I'normon>
lot''' that II:" h"l'lI inflict,,!! hy thi" rptrogradf' lI\0YP-
111t'1lt. En'I'.\' cia"" of arti,;H1I", th" "'"al'"r,,
and the' l>yt'rs. the' ()il"I11"11. II,,, Palwr-nl:lkN,. tl",
amI amI :'ILdal work,-r,;. "te . wI,t) ;11''' lllwbll' to
hellr 111' ag'lIill"t \\'p"tt'l'll cOIIII,Ptilioli. l'Pf;()rt to tile law!.
1 .. "I'e tht' TOWll'; and g'o ildo thp ('olllltr,\'. nml ar .. io;;t
ill tilP Ill""" of 1'("I'IE'''' 1,,'ol'le who a]'(- llililhle to Iwar
nl' agaill"t ,,,,,,rC'ity and flllllilif-.
(3) Thp higill'st statpmulll"hip Illay IIPI/ fpE'1 agha,;t
at this rapid and knO\\, ;1' H matter of filet.
!lInt tl,i" weig,lt,; he"lil\' Oil tilt' .'on,,('iell('" lIf
tIll' Briti"h AdJllini"lrattlr' ill 11I(1ia. Til.)'. I"'\leln.
fppl ])()l\'l'rl(,,,,, to ael tilp illflllP1H'e of til .. "II-]>pr-
1;"ling' dodrille tItat tllt':'p l11attl'r, lip ollbich- tit", 1)\'0-
yil1(,(- of (;OI'Pl'lllllellt, A reulJiar SI',t(,1I1 of hnmiura-
h
tirm frolll thi .. kly l,o]>ulatell poor Agric'uitllral tnwb to
"parsply l'poplp(1 lie\\, and lirg'ill di"trid>' i" a dpsidpl'-
atlllll. Ti,t' Iwltil1g' efforb mad" in thi" direction PI'O-
dun- 110 good, for tlle C'ollt:f'"ioni' art' not liberal
PliOllgit, alld tllt'l'E' is no l'l't'scif'lH't' nhont it. Tltt'
Anei"nt Hulen; who s .. ttler! waste clistricts, and founder!
towns wi t It floul'ishing anc! extE'nsi 1'1' I nd ustr:ies, madf'
no difficulty ahout granting tlle most lilwral COlJ('es-
30
ESSAYS O:x I:XDU:X
8ions. Antieipatiug :\Ir. Wakpfipld's l"o\ollization pro-
posals, whole Yillagl' I 'OJIllIlUllitips witll titl'ir varipd
1'II'IIlents of lift' werp I'nl"oU\'H(,(1'11 to 111011' en'lIwllXt.
and wen' made l"ollltol'table ill thpir IWW pla('p,.. POW ... 1'-
fill ITllilds of Traders ami Arti'<llls from distant \,Ian"
w ... re inilu('l'd to , .. ttlp in IIt'W hy fl'p",
gifts of land" ami IlolIses aud 1'I'ililpg"s. Stray ",t-
tIers attl'lwtf'd hy a f"w )' .. al's It'asps ('HI1 IIp\'er a('('OIII-
1'Iisit tit" eud th. Hulel's 11IIn,' ill \'il'\\'. amI such at-
tempts Hre hound to fail. A 1'01 hert 01' a l'ptpr till'
Gl'l'al is wanted to J,!;i\'e I'ft'pd 10 suelt " ,dll'lIlP. a1111
the ()rdiuarv doetrinf's of lnissez jw;;'e lIIll>;t he "pt
;uid ... ill \'i .. w of the great iutprest" at stak".
(-I) ('oll'lnest. eou8olidation, amI eoneiliation 11I1\'<'
had tlll'ir heroes in Hriti"h History. Systelllatie eol'l-
nizati<lll and the promotion of nll'ied ('ulture arl' th,'
IlPxt of dpYf'lopmeut ; aud it lIIay 1)1' hoped that.
Iwft>l't' 1011
0
with Africa and AIl,tntiia and the East
""
,uHI \\'c'"t ludips literally for Indian laho11r,
-and HIll'llla at onr door oppnpd Ill'. tilp ra\'ages of
periodieal famine8, carrying away <Ill!' tllOllsands and
millioll>; for want of \l'ork when .\gTicnltlll'e fails. wil
bf'l'Omp a" :;OUII as tIlt, 1'0lil'Y of
given up, alld an adi\'(' pffort marlp ill all dirp('tiolls
to stimulate pl'odudions hot It of raw and mmlll-
fadured products. If tiIp Stat .. ('an legitimately under-
take from borrowed funds the (,ouI'trudion 01' subsidiza-
tion of Railroads and Canals. if it can afford to thl'
I:-i01AN I'OJ.lTICAL 31
Fee of lands at nominal rates to EUfOpeal1
;;ettlers Oil the hill", tIle mae! is certainly ol'el1 fOf a
furtlwr (leYeloplHellt of thi" same illcJm,trial effort Oil
new line,.;, The Dut('h Netherland" (iol'ernment hal'e
,hOII'll the way in .Illl'a, llnrl with Ie"" motil'e,.;
the sallie IIwthorl mig'l,t well Iw tried in H'ganl, at
I('a"t, to the fndustrips ,tllipd with Agril'lllture,
Hpfinill,g', Tohacco-( 'uring'.
<'tt'" all of whit-I! <:an ('prtainly he 1II,)(lp to thrin> ill
this ton'i(l lawl under 8killed supe\'l"i"jl,n,
Proceeding next to the department of Distribution,
tIle Plliarged view of Political Economy statt'd ahol'(,
(Ioes not al'l'ept the position of the unearned inC'relllent
as alpading feature of the Law of Hent in India. The
l'nearnerl lIu'rement Theory fits in only where landed
property eontinllP" for gPI1t'rations in the posst'ssion of
the same family, If the Jand changes hands, the in-
('ollling purchaspr Imp it at its market I'alne, and he
enjoys no unparnpr! Ilrlnllltage, and the sO-l'ulled rent
is but a return hy way of fair on in\,p"tllwnt.
The English cOJl{litions of wht're the
land under a ('ollll'lir'ated sptE'lIl of entails and settle-
aIHI prilllog-PlIitlll'e, cOlltillues in tilt' ,arne family
for generations, allow free )lhy to the law of the TTn-
parned Inerement. Here, in country, lands amI
houses are not so tied 11]1, and they change hands
frerluently and largely. In the twenty years the
Registration heturtlH "how that the value of sales
32 YS 0:1: !:\'J)/.\:I:
comps up to th .. total \'alue of landed property. In
one generatioll, property changes and
when lIPW IIII'll ,'II/l1P in rl' for ralne. HIP),
do not enjo)' all} IIllpanlt'd iTH'l'pment of the past, hut
have' to pay fnl! lalnt-' for the r1itl' .. rential adnmtagps of
,guperiol' I'n.lndilt'lI("" ami I'il'inity. In the
way thp Hi,'ardiall 'l'IIPIII'Y tltat Eeollomie Hpnt dol';;
not entpl' :1' 'Ill "Ielllellt of price, admittedly does not
apply \l'!iPlI all o(,(,lll'ierl land has to pay
Rpnt to the' :-:tate Landlord. ThprE' is no ('olJlpptitioli
among L:Ili,\Ionl, in this ('ollntry, for tiwre is only OJ\('
true Landlord, amI the so-called Land Tax is not a tax
on Hpnb l'rol'Pl'. hTlt frp'luently encroaches upon the
Profib and "':',!.:"s of U,e poor Pea"ant, who lUh' to
suhmit l'prfol'ee to a loss of :-:tatll,; and aecommollat,>
himsplf to a IlI\lPr ,tanrlanl of IiI',> "" pressure inerellst''''
La,tl), tilt' .\dIHncP(1 TI,pory pxponnded hy trlP
1\1o<1"l'II :-:cl'(lO\ fllily tilt' attempts mlldp by the
(Jov"mTllpnt hpre and in England to eheck the ahu"e
of Competition alllOng poor tpnant" by conferring Fixity
. of TenUl'P, by adjusting rent, judicially for a tPl'lI1 of
years, IIm1 illlJ.",ing limitatiolls OIL it, iTlt'j'f'asp. In
this mattpr thp Tt'lHllIt, of' (;ol'prnll1ent ,,\aim the "limp
eonsideration a, t hose of ]>ri 1'[1t" Zemindnn'. The
justifieation for tl,is aetiw int.erference is as I'alir! in
regard to AgTi('nltlll'lll La honn'r, and Tenants, as it is
in the ('asp of Fadory LaholHers amI in Enrope.
These 1"'''1,1 .. are nllnble to combine for splf-protection,
33
or fit Il'ast comhi1lati01l i" not dft'etil'e liS thfit
of tIl!' of Lllhom. and wilen thpir piforts fail
to ohtain 1"e<11"P8'. 11))(1 mi"'l'ry l'('slllt II;;
l'on"('(Jl1!'nl'p", and thrPHtt'li J>llhlie !,paep and I-\'pueral
III the 8111111' "l'irit, tllP l"Pg'ulatioll of tIle
Fr('edom of ('ontmd in rpganl to fixiug" of mt(',.; of
illtl'r('st in tran",adioIls lwhrpPli tll!' 1'001' di"llnitl'd in-
d('htl'<1 dass(',; and tIll' Inoll,'y-lpnder", alJ(l tllP I'rotee-
tioll of immoveahle from hping "old away for
improvident nut "P"1I1"P'] OJI tlip "<lI II p. arp all
Ipgitimate forms of IIl'otp.'I i'llI of tIlt, weak Ilgaim;t tl,l'
"tmng, and do not afl'ec't tl,,' rt'al of ])i"trihll-
tion, The Advanced TIII'."'\, ('uncedE" freedom wIlerI'
the l'arti('s are equally IIwtd,e,l in illtelligem'p aIHi
rpsolll'ce,,; when tbi" j" !lol tl,p l'a"p, all bilk
lity ami freedom ad(b ill,,,lt tu the illjnry.
of p'JllH-
It i, ill
spirit that the Li,trihllti')ll of Producp amOIlg tlip
needy many ami tltp 1'0\\ ('rflll ft'\\, hl!"; to he arranged.
'i,e" in a "l'irit uf <"pdt,\' 111](1 fair-play, all,] the ortho-
dox of Fi"ality ill ,,"eI! Illatt('r, 1ll11"t hI' l'e-
l'onsidered in all tl,(' l<'i,tifill" of life.
Lastly come" tlw :,:l't'lit ,](,]II'rtment of Ciol'el'llmelltal
iut('rft'renl't'. TI", of tlte lllprellntilp
"ystem lll'ol'oked a l't'lldiflll against State Control ami
Guidallce towards tl,p pnd of' tlIP last (entm'y in favour
of Natural Liherty. Tl", Doc-bines of this Neg-ati\('
School hal'e now in thpir turn heen ahused hy a too
logical pxteni'ion of iI" prinC'il"ei', Tltert' is a df'eided
34 HlSAYS 0:"< INIlIA:I" ECONO)IICS.
reaction in Europ!' against th" iwi.ssez jf1i?'e system.
Even in England, the reCl'llt Factory ],\:'gislation, tit"
qualified recognition hy law of Trades-Unionism, the
poor law sy"tem, and the Iri,11 Land Settlement
j
arp
all instances which indicate the ,amp change of vipw.
Spea)Qng ronglily. the pl'o\"ince of State Interferellcp
and Control i", pradically being extended so as to
restore the good points of the mercantile system with-
out its ahsurditie;<. The Htate.is now more and mon'
reeognized a ~ the National Organ for taking care of
National needs in all mattl'!'s in which individual and
co-operative efforts are not likely to lw ,0 I'ffective and
economic as National t>ffort. Tlli, i" the l'orred view
to take of the true functions of a :-1tate. To rplpo"atl'
"
them to the simple duty of maintaining l'eaee and
order, if; really to dl'priYe the ('ollllllllnity of many of
the achantages of tlle Soeial l"llioll. Education, hoth
Liberal and Tedmical, Po"t Iln(l Telpgraphs, Railway
and Canal Communications, the pioneering of nt'\V
entel
1
prizp, the insuranct' of ri,ky nndertaking-s.-all
these functiom are ust'fully discharged by the Statl'.
The question is onp of time, fitness, lind expedielley,
not one of liberty and rights. ]n our own Country tlw
State has similarly enlarged its functions with ad\"an-
tage. The very fact that the Rulers helon g to a rael'
with superior advantages imposes t h i ~ duty on them of
attempting things which no Xative Hulers, past or
present, could as well achieve,. or possibly even think
IN DIAN POLITICAL 35
of. This ohligation is made more l'E'remptory by the
fact that the elaims to be the sole Landlord, and
eprtainly the largest CapitaliRt in thp Country.
Whilp the in India leas done milch ill this way in
the working':of Iron and Coal fields, and in the pxppri-
mpnts made ahout ('otton and Tobaccn, an(1 in Tea and
Coffee and Cillchona Plantation", it lnLl"t lw admitted
that, as cOlllpart" with it,; rP:;()lll"('t''' awl the needs of
the Country, tlw't attellll't,; are ;'" llothing by the side
of what has beE'1l attelllpted with "11<:('e:<,-; in Frallce,
(j'ermany and other cOlin trip", hnt whieh, unhappily,
ha,; not bE'en attE'ml'tpd in thi" ,'()untry. E,'en if poli-
tic-al eonsideratiollS forhirl iml"I'l'IHleut action in the
mattpr of differential (Intie", t],e l'ionepl'ing of lH'W
pnterl'rize is a duty whieh tllP (';'onrnment might
lIIo}"e systE'matically nllllprtakp with advantage. In
tmth, there is no difference nf l'rineil'lp between lending
such support and gllidancp. hy tltp fl'PP II"P of its Cre-
dit and slIppriol' Organisation. in pinnpering'
l'ndertaking or snhsidizillgs pri,ate Co-operHti,'p effort,
and it:; .:,,:;ufl.ranteein:..:; lIIinimlllll int<'I"est to Railway
COInl)anies. The lmilding 111' of Natiollal, !lot merely
State, Credit on 11roa(1 foundations by helping l",ople to
aC(juire cOllfidence in It free and largely Ramified Rank-
ing systelll, so advantageously worked in Enrope under
differellt forms, has also not been tlttelllpted here.
Tltere is, la:.;t\y, tlui duty cast on it of utilizing in-
digenous resources, and organizing them in a way to
36
pl'odllCP lJl India ill :-;ta!t' Fal'\ori",,; all !"',,dlld, (Of
skill whil'!J th", :-;tate l)p]>ArtlJlPlIj,; rt"llIi)'(' ill tl'l' 1111,'
of :-;1 u I'P" , Titt'>''' are ollly a f"" (If t1", 111:11'," ,Iin'(-
tim" ill witich. far morp Ihall I<:xeliang(' alI<I Frollti,'i'
rliffi",titip" tllP higbe"t will ha\l' a field
all it, mIll fin' IIml aetion, The" will, il"
douht, lW"'il'''' such ('onsi,lprHtiOl' if only thp lIIi1l(1,. "I'
tilt' HIII,r" Il'l'l'(' onc", thol'ong'ldy freed frolll th", I .... ar of
tllP ;.;o-eall",,1 1llaxill" of rigid E"OllUJlli,'"I
It i, that" liP\\, del'lIrturp ,dtt)llhl till;,'
pia,'''' ill II,i, l'I>1lllectiou. alld it i, with a l'it'II' to (\1'11\\-
pllhlic Hllt'utioll to tl,i" IlP('essity thnt I llal"
\pn t ll}'Pll 10 place lwfol'C' )''' II the rpsnlt" of III orl en I
t'('OlHIJIlie Tl,oug'ht. III t hi,. as in oti,p]' IIIatters, tit ..
cOI1,lition,; of Ilidiall lif,> an> lI,ore faitl,fllll)' )'l'!Il'odm'p<!
ill "Olilp of th .. ('olititll'lItal COllutr;," 1111,1 in AIllPri,'"
Uoan in hap!'y Englall(l. l'l'II'lIl of ib I,o"ition. strOll).:' ill
its insularity. :111,1 tl,,' 10011," of the l'iclop,t alld hl1si(>.-t
(:nlllll'llnit) ill tl ... 111,,0\"1]1 illllnstri,,1 '\"nitl. If tl ...
attplIlpt I )I<t,,> 1II<,tll' II'a,]'; to a lot'HIII,.I' an,l full <1i,-
clU;,ion of (I", of polin' [ H(hot,,,jp, [ .-1,,,11
regard llly""lf <1'11['1) I'('paid f'lIi' lilY tl'onhl ...
TllP follOll'illg I'xtract, "ill ,111)\1 (I",t tI,f' I'PII'.'
t'mhodiecl in II", forpgoing' l'HIWi' a,'" 1I0t ('ollfillP,1 to
the Xatil't' l'Ollllllll1,ity only. I'llt tl,at,
Think"l's of noh' arp "I,u h"(:oll1ing pn'r), ,lay 1I1or ... a]((1'
alil't' to tlop ('\'il" of tilt' 1'1'<'.'1'11\ /nis8ez fwin'
1,oliey of thp GOl'el'llll'Pllt of In,li" 'I'hp first pxtl'ad
I!'iPIA:'i POLITICAL ECO:'iO,\!Y,
37
I, tak"l1 frolll .. ,\ ,'I""Pnl Zoroa"trian;' hy LlIi11g',
'"lIlp tilll/' Finanl'ial ,'Iilli,tp\, to tllp Go\,p\'lllllelit of
Ilidia, Tl,p :,p('"n" pxtra"t i" takpll fWIlI .. A ill
I"diall A"",illi,(ration," hy :-:ir "'illia", Wilwn Hunter,
"II,] it )'I>1')'I"PII(" til" Ii,'''', (,,,t,'rtaille'] hy tit" Inl"
-"<lx\\,,,11 -'fpilill all Indian Politi,';)1 E('OII"IIlY,
r:,"/"del /"01/' .II,', .. A ,lInde!'1I 20"(III8/"i,("."
.. \rJ 1(>" :-:ir H"hp,t I'ppl "oill" fllrty year" ;',c:'o,
'"Il"JIlIl(,pd I,i" ""'" IT,i"" by thp Illln"ol'lwd "lo'jIlPnl''''
"f lIi"I,anl ('"hd,',1. and FI'Pt' 'l'rad .. wa, il11I1JO'lll'llt"d,\\'itll
. -
1'!'''lllb 1II,i"I, w,'rp altt'lId",] "itl, tl,,' "".,1 hl'illiant
>illt'ee,;", '>1"1'1' tn,,, "'I'P('("" 11,,11 1 I,.. ""lIlpr,i(l11 (If the
of tl,.. ('j, ili"'d \Vorl" lI'a' lOll I.\' ;, 'JlI",tillll or till1f',
anti tl"if a ,hort. lilliI', Fp\\, Ilollld 1,,1\1' h(','n rnllllli
h"I" !,""lIgl, to l'rp,jid tlll,t, It,d\' -""'"',, L,lt,}, Eliglaml
11'0111,1 ,tall,1 allllo,,1 ,don" ii, tllP "(lrld ill
to }']'I'" prill"i"lp", and tlll'l tI", 1'I'ot,'di(llli"t
j,"l'<"Y ""lIld ,,,,1 ,,"ly I,, ,tr,'ngl)"'II(,,j awl conti!'llwd
;""011'" ('''lltinl'"lal 'I/llioll,' "l(,I, '" Vrlll!l'(' and (;<>1'-

IIl1il1\',I"lt IId'lally 'J(llIl'h>d I,,\' lal'C:p ali<I in''I't'a, .. ;jng
,"ajoritip, ill til" ['llifp,i :-:t/ltl'", ('Illll,da, ,\lJ,;tntlia .. alld
"tl",r EI1;,;ii,I'-'I'Pllkillg ('II111IlJllllili,", ,"pt'll"" i" til,'
ad 11111 ral'! at [>I"''''lll day,
('Inh 111,,/ "I' arglllllPlIt, II'hi"h
IIliwl aI'J"'/l1' ilT",i,lihl", Vrpp
ElIgJish
'(PHdily
\'/itiOll, ('qlollyaft"l' ntl"'ll', ,,>,., its Protectioni,t major-
ity illl'rea;.ing and it,; Frpf' 'i'rll,Je IIlinority dwindJillg,
38
ESSAYS ON IXDIAX EC'OXO)IIC;;.
" It eyident thpre lw somp rP1I1 eaw.e for
such a IlniH'fsal phpnomelJoll.
In Ii h
FranC'e and we may attrilHltp it to EeolJolllieal
ignorance and the influenee of eliqlles of lIIanllfadurer,
and selfh.h interests; but the people of Germany, and
Rtill more of the Cnited Canada, a11l1
Are as intelligent as oursf'lvps, and quitp as shrewd ill
seping when' their intf'rests really lie. Till')' arp fet-
tprro by no traditional I'fPjudices, and their Political
inf'tincts rathpr lip towards Frt'f'dom And til<'
crf'ation of anything lik, an Aristocnll')' of wealt].:--
Manllfadurerf'. And yet. after years of fref'
thpv lmn' bf'come morp IIml more hardf'lwf1 in thpi,.
Protpdionist herpsies.
" \Yhat does this I'ro\'f'? That thprp are two sid",.
to tl1f' ;o;hip1d. anclnot, as \\,p fauC'iE'rl in OUl" English
only one.
" Frf'f' TradE' is nndonhtr'dly the best. or rathf'r tlIP
oIlly possible, policy for a Country like England. with
thirty millions of inhahitllllb., producing food for 11",,.
than hnlf the numhpr, and dpppnding on F01'f'ign Trad,'
for the necessary to kPPjI tIle other half alil-p.
H tllf' hf'fct policy aho for a COUll try which. owing tn
]\'lineral re,onrcp,. its aC'(,p, . .;ihility hy sl'a to Mar-
kets, its IIcClIIlIulatl'C1 Capital. amI tllp inherited qnali-
phy"if'al and moral, of it, workillg' population.
IlnriYaJ\Pfl ad\"1l1ltages for cheal' production. Nor Clln
/lny disl'a,.;,.;ioIlate obi<l'n'pr di"pute t lUlt in F.nglllnd.
INDIA;\" POLITICAL ECONOMY.
39
which a Conntry. Fn'e Tracte has \I'ork('ct w('lI.
lt not worked it has not introducect an
iudustrial :'IIilll'nniulll. the POOf afe with liS, anel
it has not sa yed from our of ("ollllllercial cle-
prl'RsJOnR. But, on 11'1101(', Xa!ional "'l'alth has
grl'atly incr('ased. and. what is more iml,ortant. nation-
al well-b('ing incrpasl'd with it. tl,p lIIass of the
population, and tl,t' "'orkillg ('Ia"e,. get
Iwtter wages, work shortt'T hOIlI'S, Ilnd [Ire better fed,
11t'tt('r clotlled, ami hetter educated thftn they were
forty years ago.
" This is onl' side of the :-Ihield, and it is really a
golden and not an ill usory ont'o But look fit the other
,idE'. Tak(' the ('ase of a Country where totally 01'1'0-
,ite conditions prp,'ail: where tlIPre is no snrl'lw, !,o!,u-
lation, unlimited land. limited eal'ital. 'labour
and dE'ar. and no l'os"ihility of eOlllpeting ill tht' foreign
or /Own in tIlt' hOllle :\larkE't. with the 11l1llmfiH,tures
which, with Free TmdE', would llP pomed in by coun-
triE'S likE' Eng'land. in prior possE'ssion of all thE' E'ie-
ITIE'llt" of chE'ap Prndlldion. It is hy no '0 clE'ar
that Protpction. to pnabll' l\atiye Indu;,trip, to takE'
root and grow, may not in casE'S hE' tilp wisE'st
]loliey."
"TakE'. as a simplE' illustration, tllE' ('n'E' of nn
Australian Colony, imposing an TmpOlt Duty on
Foreign boots ane! shoes. Tlwre is no donht tJlat thiS
is practically taxing tIlE' imlTlPnsE' majority of Colonists
40
who weal' and do not makp th .. "p artiel.'", Hut, on th ..
other hand, it Ule a poS>'ible fipld f"r
Emigration for "llll of EU1"Ope, anrl ,,1101'-
making a tradf'to wIdell any Australian with II 1IH";..!"
falllily ean hring up 0111' of his SOJI", Looking Ht it
from the "triet point of \"ipw of thp mo,4. rigid PolitieHI
Eeonorlli"t. thp mllxilJlulll l'rodudion of 'YpHlth, wlli .. h
is the lwtter poliey'r Tlw produdioll of \\'eRlth, WP
must l'pcollect, depends on Labour, and procludiw
labour clppends on tlrp Laholll"pr finding his toob-that
is. employment at which hp can work. A laboUl'f'l' who
cannot find work at living Wllgf'S is lI"or"p than a 7.ero;
he i,.; a negative quantity liS far liS tI, .. a('enmlllation of
wealth is concerned. (In Ule nth .. r hand, pvery work-
1I1an who finds work, e\"pn if it lIIay \lot be of tl",
ideally best deseriptiol1. is a wpalth-)H'orlul'ing maehine.
\Vhat he "pends on hini'elf Mild his family elll-
ploympnt to other worlmlpn, awl thp work must I",
poor, illrlp .. ,l, if thp l,ro(lu(" .. of a year'" lahour is \lot
more than the eosl of a Y":1I"'S i'uh"istenc .. , Th .. surplus
adds to thp (':1l'ital :Iml tlllls Capital and
Populatiou go on .inel"pasillg in (i-pometrieal Progression.
Thp first I'rohlf'lII. t1lprpfor ... for a npII' or hnekwanl
Conntry, is to timl 'a fail' day's II'n!.:"" for a fair (IllY"
work.' fo1' as many !rands as l,ossih\p. The 1'rohlem of
making that enrplo)'II"'nt the mo"t. I'l'Odllelivp l'o;;;;ihlt'
is II secondary one. whi"h will ,;ojyp iti'elf in Pilch ('nRp
ratlrpr by lletual Praeticp tllan hy ah;,tmct TI]f'ory.
rOl.lTICAL 41
., This 11111('11, Ii ow(> 1'1' 1', i, PI'Ptty d(>IIJ', that in oJ'dpl'
to till' maxinllllll \,If f'Il1J,loympnt, it he
\'aried, All an' not tit till' a,QTicllltllHll work. and,
e\'pll if they WI'l'f', if n,p ('O\HlitionR of ,;oil and l'Jimate
lilvou1' large a III I Sltf'P!, or ('attlp Rnrl' rathpr
tllnn small Farm", II I:"'g'p HHlOllnt of ('apitlll lllay 1'1'0-
,idf' work for onh' a """II lIlIlHlwr of lahonrpl'''' (In
sOl'illl a.nd moml gTolllllJ,-. al"" al'arl fl'Olll dry l'ollf'irlpr-
atiolls of Political l,rogre"", int,plligPlll'p, anrl
a Ido'her ,landaI'd or IiI'" "n' Ino]'p lik"l\' to h" tillJlHI
,
witl, hll'gp ('ilip,. 'lallld',,tnI'P':. "'1(1 a \'nl'ip/y of ind",-
I l'i,,1 Ol'l'lIpHtio'h: I hall wit Ii a d!'ad \.>\,(,1 of " t;,w
'liliionnin" and H few SllI'plll'rd,:, or of It fpw LH],rlln]'(\';
and a d.,,,,," 1""I"llatio" "I poor Pp:l,:"lIt" if 1'1'01.'('-
tion is tllP pri('p lI'hi"il IIln,1 he paid 10 I'PIII1pI' "",I, II
l,ngf'1' lit( I"""ihh" it 11Ia,\' hp "'Ill II I 1)(,lil'\' to 1',,)' iI,
:Lntl thp re"llit '''''III'' to ,:IIOW that llPitl,p,' it "01' Vl'ep
'l'!-adp i" in('oll"i,tp'd \I illl "''1,irl 1'1'0:':1''''''' whilr', Oil tIll'
otlll'r llanrl, Iwitl",, ,)1' tlwlIl affonb an ah"olulp i1llll1n-
lIily from tl", e\'il., 11",t dog' 111f' {(Jobl!'I" of Prol:;rp""
a",1 fr'lIll tilp l"'riod, "I' I'""dion :llId d"I'l'P""ioli \\'''iell
yif'i"itll.lp, Dr Trade,"
H,,'l,'lIcf /"011/, 8;,' 11'. 11', ][nntm"8 .. 81 wI!! i 1/ I"di(/'I/.
A Jtll,i,/I'i sh'I,f'; rm ,"
.. Knt Kir ""x\\',,11 ""h'ilJ. or \1,,\ '\Ipl\ill a,. he
w," affection"t ... l\' "1111 .. <1 tlnnnghollt hi, ""l'Ppr. WHR an
illlj>ol'lant j>f'r,nn:dit\' :lIld" liyill!,!' ilifillf'lll'" 'Illite apart
1'1'0111 hi, offi"jal work, In Ef'OllOlllir, IIf' did not 'hrink
42
l*jSAYS ECO:SOMICS.
from declaring hims{'lf a of tli{' AIllf'rican
typ{', that is to say, an advooote lor Protection not for
a singl{' isolated Country, hut for a grent Continpnt
like America or India made up of a number of
possessing within them tbe for IIhnost every
kind of indeed, for almost pwry form of
human Industry, and capahle of a s{'lf-sufficing econo-
mic developm{'nt. One of those who knew him he,\
lwliews that it was this conseiousness of Iioiding vi{'w,
not in nccordancp with the I'rl'l'ailing (Ioctrinf's of tllP
Government of Indin, which infhll'nced hilll in (leeJill-
ing the seat in tIlt' Yieeroy's CounciL"
II.
THE RE-ORGANISATION OF RFAI
CREDIT IN IND!A.*
k ............ ,
N
() fad in ti,e e("()nomic eondition of this Country
arrests attentiOB more forcihly than tlw contrast
presented hy til!' hoards of unused Capital, stored up in
the vaults of the Presidency and other Exehange Hanks,
and the hil-!;h Premillill tTovernlllellt eOlIJlllancl
011 one side, amI, OIl ti,e other, thp nttpr l'araly,;is of
industry in runl! [mlia, r1u!' to thp pon>rty of till' re-
sources of the ('lasse, !'ngaged ill tI,e production of
\\'ealth. It would appear as if sOllIe impenetrahle
harrier interee!'te,\ till' overflow of wpalth, and harr ... ,)
the channels of eommllllication hetween the resenoir..;
of Capital and tbp panhed fi"ld . ..; of Industry, dried Ul'
for want of till> wpalth-hearing ,tllll fertilizing' Illoistur ...
TI,is j,; not a limc} l,ietme, It i . ..; a "tern rf'ality "bid,
hm; to he facf'11 hy all \\'1.0 fef'1 an interest ill thp wpll-
being and progress of the Country. The l're"idt'Ill'Y
Bank of Bombay alone, has at this moment morf' tllf\ll
Fifty )[illiolls of Rupees of Dp!'o:o;it Heeeipts, whieh it
* Read befor(' the Fil'."lt Industria,} ConfereuC'c
1
at Poona, ill
-t-t TilE HE-OIHi,\:\I:-<,ITi():\ UF HEAL (,HEllIT 1:\ l:'IlHA.
do,,'; lIOt know how to ll,;e. anll whil'h <lriH's it in
d"'l'nir to nefn,,, 'lnllieipal nnd otlier PriYatp Vf'l'o,;it,;
"x""1'1 a" ('lllTf'Jd '\'Tollnts wllich Iwar no int"]",,,;t .
.\parly TWPlity 'lillio]]>' of Rul'f''''; arp IO('kpd Ill' in tlu"
Pn,j (Iffj(,(, Bunk, in thi, PreHidplH''y alone. ilmi
"" llIal':rif, Fifty" illioll>' of HlIl'pes arp ,ilJlilarly IOl'kf'f\
Ill' all ,,\'pr 11Idi" wl,i"I, tllP (;O\'prlllrlPlit ""lIllOt turn to
aCl'Ollnt ,'x(,I'I,1 hy I"lying it,,; OW]) PIl]>f'r. lind lIIaintaill-
iug frOlIi tIlt' pr')(T,d, it, 1'''l'('r ('urrency
])f'l'nrtlll"lit. (;"Y!'rJlIlJ(lIt.t]in "'Ilt. I'al'pr ,t'lls 1'0),
l\;-;. ] 07 or ] OH. <'lid ,) 1)('1' ('Pllt. 'Tlllli('ipal
fet .. l, I{" Ill-I:! 1''''' IIl1ll1iwd Y'IIII" of Hs. 100.
,[,11f' aY<'IW"P for tt'll

Forty 'I ill ion,; <)f
"illioll' "I' Iill]>!'!','.
y"ar.; "f (rold illll'()rb hilS hppn
HnI'PP'; an.\ of Sih,,!' :-It'Y!'llty
tIll' )nttf'r ehi!'tiy ""inpr) into
lin!,,,!,,, tllf' rllrlllP)' "liiplh ,",,'orh.,d III IlrllalllPllt,.
""aml'liilP. till' ('Idtiyatin!.: alld .-lrti"lll ('1",,1" ('an gpt
lin Jonn:-:. f'XI'('I,t :It nf illh"'l"P:-.:t rilllOilllf frotH 12
:"""'l .-
to :!-l I"'r ""nt. )11 till' I'Hlr ])",,(,<111 J>i,tl'id:"
1'0011;). '\";';';1]'. mil) SI'II)"I)l1l'. with" ))/)l'llllltiOll
of thl"'" Illilli'lll' ;)lld-a-h,tlt'. 1'111' \\'l>i"\J illfol'lllatio11 is
;)\'oilal,) .... til<' ;)lllomlt of allllwd horrowill"" 011 the

"I' land fOllr lllilliolls. antI of ,itnple
loa]!>' 011(' millioll ;)l1d ,i" Il1lndn'd tllllusa]l(l, tl,p intel'-
p:..:t rat .... nn LOHlI;-; 12 per
'f'lIt. :111'\ tnl ,illlj').' H"llf\'; :lei )"'r "('lit. Tht' ,Iig'llh'st
ilTf'gnlal'ity or ilpl,,\, ill tI,l' <1 1Il111<1 1 rainfall d"l'ri\'es the
wllO)p ]Jo]>uhtilill of fond. ;)nd. wllat is far \\,(11',"'.
1\111.\\ POLITIC.\!, H' 'V'.\I\".
4:.
them withuut work. alld (;U\'("rJ,IlWII\ til"]": it Jlf'l'f'ssary
to ,haiJl all its r,','llIH"', to <lIT",t lIot ollly tilf' Fooll
Falllim', hilt tl ... \\'urk Fall,ill" a.' II ,11. Lt',s tl,an 31
w
,
','llt. of t],,> lalld ill tilt' I'r",-itl"IIl',\ I,n'l"']'
i" l'ru\t>ded lIy lrrigatiulI, TI,i, i, tIll' nctlHd
aud it i, el"ar tl,at it i, "I"l'lnin" "uongl"
If tllPr ... II'"rf' IH' t '''1'ital ill tl, ... ('UIllltn ,(,('king
1",'Ut. tt.en "ultI,1 j,,, r"",ul' for ']''I",ir. BIIt. a, thi1lgs
,t"lIll. tI ... ,itll"ti'lJI i, 1Iut 1"'IH,Il',". Tlwn' is Capital
l't'ady to l"llId "\\'aitinp ,,,,'\1[,(, illl("tlll"IIt, TIIPrf' is
.
till' 111'1",,1 .\1''''",' ""I,all>c of ludll,tn Ilbj"ll is tbirst-
fur ('aplt:d. :1l1l1 pffprin,!,! thp IIIP .. t
for ib fr\\itflll Pllljdo: lIlpII\. \\"Ilal j, l\1tJlting i, tllP'
neceBsa ry
,ki II
"HI I

wl,i..ll \\ ill
"dj 11,\
tllP
('apacity of til t'
IllIe
to the \\'a llt:"'
"I'
r II t' lIt IIPL Hllrl
lJlake hoth w(lt'k
1lI a ,pirit
"I'
IIHnlHnlY amI
('0-
operation,
In this ('Ollllectit)lI it IS I'>ry 1l1l(',rlllll<lh t],,,t the Eco-
nomic ('o)](lilioll, lIf EI1;..!lalJd ,,1'''' ,,' \I i",>ly dil ... rgE'nt
frum tho,,' ,If Illdia tl",1 tl,, 1:111,,1', of tliP ('OlllJtI'Y,
hrought Ill' ill tl, ... 1l'mlitiPII' of tlwil \,ltil'" Land, timl
tllt'ffiseln', II",, .. III' \,.", 1l11\)1I'1"1\'('d with the
difficultie, <'ll'at ... d 1.\ II,i, 1101,,1 ,illwtiOlI, \\'itb it>:
land owned ,.hipf1y II) a kll' lalldlllrti-. alld it,; 1't'<"Hntry
it \pry
Classes, with it, larg" al"'lIl1llllatiPII>' of \ ','1 ital, aIld the-
"ast de\'pl"l'lIwllt of its amI ('OllllJ1t'l'C'illl
adil'itit's, (il't'"t I:hitHin I, 1110,( I,pelliiarly l'in:ulJI-
46 THE RE-ORUA!IIISATIO:\ OF REAL CREDIT IX I!IIDIA.
>;tanred, and it,; Economic History no
for dpllling with thp diffieultip,; of the situation in India,
wilerI', except in a few Proyinces, the State claims to
111-' thp landlord, and Ilgrieultllnll "'asses form 80
per cent. of til .. total popl1lHtion, and tllp!"p is no ac<;u-
mnlation of Capital; am\ .1I[alll1factlll'P' ami Commpl'ce
ar .. in tllpir l'lldimentary stage, awl iu that stage a,lso,
chiefly monopolized by ,trauger,. On tile Continent
, .
,of ElIl'o1'e, howeyer, IndiHn 1'roblpllI.' are filirly repro-
rlm'cd \\'ith Indiau ('onrlitions of lit'. and property, and
t\lP \e,;"on8 to \)(' dPriw'd frolll till' stndy of Continl'lltal
EcollolllY hal'e a ilion' practical ht'nring than the
eontniupd in tllP nsnal Text-hoob of English
I'olitieal EeonolllY. The tHsk of Hp-org'f\llizing Credit,
hoth j{pa 1 and l'el':'OIlIl 1, 011 a ""Ilud Hml progressive
has hpell Ilndpl'taken hy ('ontinelltal
and Thinkl'rs ,luring tltp last fifty Y"al", mId they
hayp succe('(l .. d in bridging the gulf whirh sqJal'ate8
tlrp sl1l'ing (PI\' frolJl till' producing lIlallY in a way
which cOlllllla1lC],; attention. If this task were uncler-
takl'n ill tlW-;'WIP spirit hy tho,l' who fl-' .. I its impJr-
taHcp lwre in the I'l'olliotioH of \\,pll-being,and
a operandi established by whit'll people seeking
spcure inyestment can be brought face to face with
those who need thpir 1wI1' and are l'n'pared to offer
that secnrity, the Xatioll would SOon start upon a new
race of life with its powers invigorated. and its energies
awakened in a way no other single agpncy can IIccom-
INIlJAN POLITICAL ECONO:lIY. 47
TlJi, Conference will not haw InPt in vain. if it
8ucceelis in drawing publie attention to the subject as
olle of paramount importancp, and if it attempts to
suggest ways ancl meam for practi<'al adoption,
on principles which will, in course of time, find thpir
further development in far-reaching heneficial {'on-
'Villi this yiew, it is proposed to giw a
hrief history of the growth of the organisation of real
(,redit in tlte co]mtries of Hungary and Austria, France
and Italy, Belgium and Switzprland, during the past
fifty years.
To takp np the hi,tory of the mowment in Hun-
gary, it noticea hlp that two important developments
in the condition of t lw Agricultural Classes forced this
subject IIpon thp ,dtpntion of the ruling classes in
Hungary. As tlle,p dp\"t'lopments find their counter-
part in India, th"y d"serve special notice. In the
first place, after tltp HP\"olution of 1848, the Hungarian
Peasants found thelllselrps in the possession of personal
fnedom, and of proprietary right which thpy had only
imperfectly t'njoyed before. They were Serfs before,
amI though partially emancipated under :VIaria Therpsa,
t heir complete Plllancipation took place aft!'r the Hevo-
lution of 1848. The old S!'rfs w!'r!' mad!' l'ropri!'tors
of the they held und!'r their landlords, who wpre
hought off to give their consent by Ruitahlf' compensa-
tion. CompulRory labour was abolishpd; Rents, TaxE'J3,
and TithE'R \\'erf' consolidated together, and the nobl!'s
48 THE HE-OIW,\"I:'5ATlO" OF HE,ll. CHEIII"!' I" I""IA.
. ,,;,a.
WPTP btxed likp any otl,,'r l'la;,e;. nlHI had to pay
wagps to their old SerE, whell tloey employed them Oil
their diminished FarJlI". Copy-hold awl Serf-hold Prll-
pprty becamp I<'rpeh01l1. Ai' "" ti,'f" lakhs (Fi, ..
Hundred thollsanrj,,) of faillili,>" wpre tl'll" restorf"tl til
frpedom, and, on an Rverag-
p
their llOltlillg'H were ahout
fifteen aC'res eadl. Thi". it Illay I,, li<,tpd. fairly CIIJ"-
respond:; with the \\I,id\
"hout o,pr the grpater part of India
except that thp Statf" in
I"" hf"f"n hrollght
hy t I,p >'f"t-
Ilitiia I\f\s Htepl'ed
iuto the position of thp primtp landlord, "lHl claill\' to
hI' owner of all cllitimble ami ("ultimtecl land. The
uext change which took plRce iu Hllugar)" W,,, ,,1;0
rPI'l"f)(\nced in thp history of our O\\'Il country.
Ow ill" ,.,
to ill creased tacilitips of comllllUlieation. new .'farkpt"
werp opf"nec\. and the Exvort tmde 'I,., d ... ,ploped to a
IlIrge pxtent. Old method" of cnlti'il1 illu. which rlirl
wpll enough nndE'r old conditions. WE'I"l' f .. lt to be illH(Il"-
'llIatt>, anrl it found IH'CE'8SaIT to :I hH1Idon the old
'y,tE'lII. Owin:,( to the poyerty of good wit"te land. the
r'lllti,'ation lIarl to becolIH' ill platp of t!tp old
,,)"Stelll of extensiw cultin\t.io1l.
l'ndpr the double infiuE'I1eE' of thE';':p two call"e", thE'
prohlelll of rp-or:,(lIuizing rpal l"rE'dit, i.e., of st'l"uring
loall:' 011 ea"y terms on the SE'cluity of Real Propt'rty,
fir"t pre"Plller\ itsplffor p"'lcti"al solution, Hud Reall 'rt'-
<lit In"titutioll" worker! on r\iwrgent principle:-. lIere
"tartp,\. eith"J" in tht' illterE',t of the horrower" 111,0
1!'OIlIA:"i l'OLlTICAL E('uNmIY. 49
c111hlwo their rpSOl\rce:< togetllt'r, and fOUJl(lpd f;lJ(;h
illStitutiolls "' the Ho(len ('redit Institute, or ill tllP
interest of the lenders who ol'ellt'l] departlllellts for real
advances ill the grpat :\'ational Hanks, sudl a" the
Austro-Hnng'ariall Halik or Ihp P)'O\'ineial Sa\'illgf;
Hanks. The tirst HOlien ('redit Lnstitute was shutI'd ill
1863 hy two hundred allli Iline land-owner>' wllo Hlh-
scribl'd lIllIong tllpllIRphps II larg. amollnt of ("'1,ital,
ahout fiftppn llIillions of Hnl'Pf's. of whil'h ollP-tellth
wa" paid up in l'ash. anll th. ",,'IllHinillg llillf'-tt'ntl",
II'<lS rel'rpsplltpll hy HOllds 1':I"s('d hy thp FOllndpr, ill
Favour of thp Bank. wllich II'P\'(' graduaUy withdrawn
as the R""pne Fund illerpaspd. En'r)' borrow('r to
hecOllle II :\1"111\)<>1'. alll\ guarnlltped with ot\(('r>, who
joined with hilll, tl,.. solwlley 01 thf' ('OIlI'PrJl to all who
had dealing' with tl,p Hank as HOJ)(I-hoider, or l)pl'of;i-
tOTl'. Thp ordinary rate of intpl'Pst 011 IIlOrtgaw' loans
wa' 1II11<:h higher, hut thp Institute IIWtiP it>, adYHlll't'S
at a tixpd mtt' uf and a half IJPI' <:PIlt.-
",Ilieh gradually l'Pilll(,p(1 to fum allli a half pt'r
l'PlIt. Thp at!mueps Iliad.. WPl'I' lilllitt'd to bnlf of
the asst',;sed nil ue or t IJl' l'l'Ol"'r!y mortgaged. :\'" 111'0-
l't'rty was t.akell ill 11l<lrtgag" whiell did Hut yi,'ld a
tixed and pprtaiu iHt:UIIII', alld 110 IOflll was mali<-
hy way of a first and ,,,,II" l'lllu'g'e. '1'1", ratps of ill(pl'f",t
"til'uiated indlldt'li iHt .. n",t proper, and one I'PI'
for tILt' fUlIt! or for th\' amortization d,arg'E',
and twpnty-Ii\I' tt) lifty per ""lit. for the eXl'eme, and
50 THE or REAL ('EDIT 11'
the Resene Fund, Till' rf'paynlt'nt of prilleil'ai allti
interest wa:, secured by Rl'r!'IHling till' payllH'11t
over a period of thirty-four to forty-OIlf' Yf'a .. ,..
The Bank BondH of one Hnudrpt! or 0111'
TnOll.,and or tpn Thousanrl I<'lorin;: at -l'R5 pel'
<'elit.. and theK!' Bond, were IlIllde to hearpr.
and, heing negotiahle, frf'ely ehaugpd hand", and
a portion of them Ivas wit hdmwn hv lot pat"h
dpht was paid off ill part. Till' B'lnk was reql1ir
p
rl hy
law to keep it, Bonds strietly within Hw fllllOlll1t of
the value of tlte rnortgag'e(l I'rolJPrty. thj,
guarantee, tlte ereditors had a fir;:t charp;e "II tl,,
ten per cent. paid-up Capital of thf' Founderf'. and on
the Rpsen'e Fund, ami thp "'nhml Gnarantpp FumL
and tll!' ;:llbsifly paid hy li-owl"Ilment to hell' tll+>
J{P;';Prl'P Fund. H IS very important to notp till'
cOllce>sion, granted to this &nk by th(' Hungm'iHII
l}ovenllilent. The vOI'prnment granted a Hlh8idy to
the R .. ,pn-p Fund of fin' hnnorpc\ thoui'and, of
It exempted the Bank', l'rotih from the income-tax.
and operation, fl'Olll all dutil';', It lent
the help of its olliep]" for a8sessing the nil llf' of the
property mortgaged. It ordered inspectioll of an'ounb
with a yjew to ,ecure ohedipnce to the rnIl';';. and,
finally, jt permitted tI.e Bank to fllrp('lo,p or sdl the
mortgaged and also unrnortgage(1 l'rol'prty of it;;
debtor on default being committed in l'ayrllPnt witb-
out re'-1uiring it to go to Jaw, and tnkp dWIIce
I:\I>IA:\ I'UI.ITICAI. ECU:\O:\IY.
51
()f justicp, witli all it" dplay" al,,1 ,o"t". Tlip bor-
rower wa" re'll1irpd to l'HY ,.;ix-mont.hly illt.'rest III
'lfhanee, and tl,, hank HI,,) paid thp ('ol1pon,; on its
Bond:.; to tllP Iiolder" tllPn'of aftpr pypry "ix 11I0nths. In
('onse,]upncp of tllP"" PX""piiol1alpri\-il"'g-"", it-w (If'fault"
Wf're cODlmittf'd. and it Ii", )1<'ell ... "tilll"t"d that out
of some lour!epII milliml" ,,,hn1ll'e<! hy ti,.. Hank to
,.]e\'en thollsand hOlTowen,. th .. Ball k lind to "l1ftpr 10';"
to the extpnt of .. tl,oll,.;a1l(1 1'01111']" ,.;tprliHQ'
'11IIy. TI1P hOlTower" are al1()\\"td fl'epdorll to payoff
tli .. ir deh!,.; ill allt.il'ipl1tion. :111(1 a "J1mider"hlp minority
tnok Ilth-anta,g" of t.his pri"ih'g", Tlip h"htlltf' hilS
thus fully r .. ali7.pd the lEaeling idea" of it,.; promoters.
It acts as intpl'Illooilll'Y hetll'!'PIl ti,l' hol'l'o\\'p), and the
I"nder; \Vllilp procuring for tltp boJ'l'o\\'!,!, """ipr tf'rms
and teAcliillg' him sf'lf-reliHlII'p "nrl fl'P{'d01 II , it favours
t hI' If'nrl!'r hy olff'ring it,; 0\\"]1 ,gl1nrail !f.p lin' the
Illon"y hp advancf''' to thp bol'J'oll'!'l' t hrollgh its
ag'Plle),. 'flip"p fiwilitips han" gwatly 1"'11'1'<1 the
p)'o"pf'!'ity of all CIa"""" in tllP ('mllltry, and lowf'l'f'cl
thf' rat .. of all r011l1d.
TIll' Boden ('rpdit rn"titnt .. al80 df'al" with Com-
limn .. " and 'InlJi,illHliti .. ". and a(},'mwp, loalls on
"l)!-'('ial terlll" faY<llll'ahl,. to tilp"f' ('01'l'oratioll" and to
the Balik. 'fl,i, Bl1llk j" thf' h"st tyl''' of institutions
worked in tl,P intl'l'P"ts of til!' horrowpr", aR the
fOllnder,.; are ('011t"lIt with five !If'r ('f'llt. interest on
paid up capital. allli ih, Dil'!'etor, l'el'f'iw no payments.
52 THE In:-OJ{(i.\\I>',ITI<I\ Vi' HE.\1. CHEI"T I" 1""1.\.
Thprt' al'p otl,p .. J,,,tit tioll' WOl'kpd 011 tl... ,nil'"
pl'in('iplp, ill tl,p intpl'l',t of thp lpmlpr,. alld ill thpir
('H'p r1il'id"lI<l, Hn' dl'(,larl'd a, in o,..linnry Kalll,,_
'Hrying ac('or.iillg to thl' conditioll" of' ,>"ch
ulwmtiolJ:'. '1'111' I'rilwi"lp of all th,,'l' Ballh whidt
IlIakp mil-Ill'l'"'' oil He"l Property j, 'to, illt,,vo,,, tl'f>
Rmk betweel' tilt' hotTo,,'el' lind tl,p Iplldp]" to
ntutl'''' tl,(" /pllcl,"r ,,"aill"! ,til ]'i"b. awl tiJe),phy "1'('111'1'
.
a r{'(luetioll "I' thp ratp of illtpr .. "t:'l' ,,:< to I,dI' tl'e
!Uilll:-: tit
a "li"I,! ", PldlillJ(,,'d nit .. of
'" ,
illhI'P"t. ali(I l,rOI'id,' f'I!' "
({e,wl'l" Fllud. "lid 1'0], tl,p
( .. xl't'n:H:..... of llwnag'Plllt'lIt, nllt! IlY "l'l'Plllling' tl. ..
l'H),1I1ellt 01'1'1' a long lllllllbpr of y",al", gellPl'ally forty
),""1':<. 1,ruI'idp fur a hilt l'prtaill "ati"fadioll
of h.,th principal HIlII int,-r .. :<t. '1'1,1' An"tru-Hilngal'iau
H'lIlk i:< thp d,ipf of tl,p,," BHnb. "I,iel, ('nnY on
hll,illP"" III th.. intp)'e"t,,,; of I I'll 01 P1',";. Bp,..;id .. ,,,; doillg-
tl", I'pi!ular work "I' a \atioliHI Ballk. it I"., " Upal
(',',-dit IhHllCj, "l"nagpd h:-' a ,pI,ara/'- (\,ulluittp,". hi
('oll,i,!eratioll ofthp "'peciall'l'ivilpge ofoiltaillillg 'lwedy
ps,-('nti()lI of it" claim", nm! t'X"1I1I'tioll' fl'Olli :->talllJ>
nlltit''; !.'lIl1!'t'I'!'!"! on it, the (JO\'t'I'IIlIl"lIt \"1'; a !lalld in
tllP ,ui,('ni,jllll of tI,.. IllanagpllIt'nt .,f tI,i, BranlI,.
A UOI'I'l'lllllt'llt ('Olllllli,sary is "ppointpti til tlii" duty.
The Hall k i,-,"", Bow!..; at foul' I'l'l' ('''lit. aud charge,;
fonr a 1111 " I,al!' to file ami tl.l't'P-ll'tarter" per
('pnt. ;u""l'dilJ!.: ,(,; thp period of alllurtizntion i" long
or sbort.
1:\,llIAX POLlTIC,Ii, ECOXO\!Y.
.')3
TIIPrp arp ,,\ IIPr Ban b '11('11 a,; t \ip H ypotlwkell
Bank or tilp 'r,ilit F01H'if'L tlw ('Ol1l11lpr('ial Bank of
Bnrla-p .. ,;til. alld tile !';;tlill>.:' Ban\,:,;. Irhi .. h '\0 not
PlljOY any 'Iw .. ial hilt do a largp amollnt
of work.
A .":IIIHllpr Ho)den t'rpdit In,!it,,!p wa, fOllllded in
18i9 to hpll' polO!, l.:tu"I"do/,,-,',. Tilt' UOI'PJ'llnwlIt
"Tantf'l! II '11I>-i,1\- of \i"If " _"illi"n Floriu,; to it,;

Hp,;en-e Fund. alld its other nlip, "lid I'rililp,!.!p,;. and
tl,P \lower8 of IiO\'Pl'lIJneut ",,"i roo! ;In' lillie-ii tlip
,.:alile a,; tho;;p 1j,''<Tihpri "hOI,' ill to tllf'
Ill,;titntion. It ha,; IIPII',01 I!IlHI-holdf'r,' with loan,.:
allltl1lllting ill all to \Pll _\Iillion,; ,)1' H11I'PP":. ,pl'nred ,m
a total 1"111111" of tWPllh'-tin' Illillioll". and has. III
"om',,- of timp. n-'!llI"'ol tli" ratp of illt .. r .. ,.:t from
and a half per ,ent. t,) 1'0111' an,1 " balf 1"'1' ,"nt.
AI! the8e Halik- ill An,(m-lInngary I,ayp latply
IWPli PlllpowpJ'f'd to ,,<1\';\11"" I""n" t;,1' illll'rovt'IHt'lIt
l'nrpo,;f';;, 1IJl(1 "'1I'i, I""n" an' "t\Ya II ('HI at fOllr nn,1
tllrp"-'lllartpr": \,pl""lIt. ill,-lndill!..: til" ,;inking fund, lind
Ill(' ppriod for pxtilll'tillll "I' li"hility rilllgp" from thirty
to yt>al-'. TI,f"p ,,,IYHll"'''' :In' ":XPJllpted from
:-itfllll\, J)utip, and otl,l'l' .. I,arg''. m,,1 tllP tpchnical
,'xPl'lltion of th"" .. iTlll'rOI'!'IllPllt \\'orb. whi,h involl'e
f'x]>('lHlitllrf' ol'''r a .. prtain ll.1Il0lJ11t. i" eJltnbted to the
n" n l,ortiol1 of th ... ir Dt'fllult
or ,Iiffienlty of I'()llpction rRJ"ply """Ill''': a,.. afhanees
,up hy rnlp lilllit.,c\ to) ImIf flIP valne of the IIssets.
:J4 'filE HE-OI{(l.\'iI:'<.IT[O'i I{E.IL (,lmlliT IX (XIlI,I,
III An"tria, tl", I'I'Olilll'ial Ik)(l"l1 Cr"rlit Anstnll"l1
r!,('t'IH' Hlh"jlli", from the 1'rOl'in('ial (ToY!'rnmf'nh<,
ami ill 1'"t\l1'Il tile (;01 ('nJlllf'nt" t'xprci"f' ('ontrol and
,upf'I'I'i"ioll tllrol1!.:'1t t!wi)' t 'OIII1t1i"arif",
To COlli" llPxt to ti,,, I 'ol111trif's of the Lot,in
PIJiOIl,-Fmllee, Italy ,,,,,I P,elgilllll,-it i, to be noted
that tin' ",taiJli"hIIlPllt of 11 ('IHlit "'OJlCi!'L or .Mort-
gage Hank for IP1Hlilig IIHHlPY P1I tl,,' of
lalld" fi)j'('I'd it,pl!' 11]11'11 tilP attp1Itioll of tit!' Fr!'nclt
]l!'opl!' ahollt IIIP tililP of tltp /{1>I',t1l1tioll of 1H41'.
In'luil'i!" Iliad" ,tt tlw till.P .. li,it,t1 tl", fll(t tklt tIlt,
rate til' (Ill IIIOl'tgHg"P \WtlIS lIilw
to ten ]>PI' (,\'I1t.. "lid tlw idp;l of tliP l.romot!'r, lIa,
to l'PllIOY" the diffie-ultip" 111 tl ... lIay of filllling
capitnl 011 tit\' C'n,dit of land felt Itl' titf' P!'a>1IIIt
'l'o1'l'ip/ol''' (Teatpd hI' tl", Frt'lI('it [{PI .. lllti,)]),
In 18.j2, till...,' "1'('111 IiI,titlitiOlI' II't'n' f()[ll"I,,j
,
lJl Pari, nnd in hl'o otl,,'1' pl)l('''', "nt tltey 1\'(-'l'p
amalgamatpd illt .. II ('pntH" Ill,titlltiOlI lIitll it,
head-quarter" at Pari" !l11<1 lIitll ;tIl PXtln,i\p ri:.::lit
to Opf'lllte tln'oll:.::llollt 'I'IIP ""jed of "H,II
nstitlltion, W," laiti d"lI'll to hf' tilP IlIh'allef' of
loan" to silloll l!IIlti-oll'IIf')', at Illotienltp illtp),t'"t. <Iud
l'l'o\'ide f'l!' th ... r"!"I,YIIIPllt of tli" prillcipal amI 111-
of tilt' "'I lilt' ill It Ion:.! period of forty IIr
fifty }'f'a 1''' , Tlip I'"pital of tlli" t 'elltral BallI.. II''''
I'ai"oo to "ixt)' of Fmncs, OIw-half of
which WfI' paid Ill', Iu eon"iti"ration of tb .. t'x(,IIl"in'
POLITICAL 55
conferred on tlw hOlly a' tlte sole :\'ational
Bank for the lllol'tgng"p of Heal 1'roppl'ty J1l Frnn!'t',
(TOIt'rnment has upon rt'taining in its hands
('ollsiderahle power, of eontrol and 'U)JNVlslon. Tht.'
{'ovt.'rnor nml tlr" :->uh-{fOl"prnor, are appointed by
tht' President of tl,p Republie ont of the larger
,hareholder" alltl thpr!' i" a COlln!'il of
III 1860, the ('rpdit Foneif'r WlI' authorised to Ipucj
IllOney to ('Oll'"lIllle' lllld n('I'Hrtmellts, st'cured on
.\[unieipal and L(l(,lil Fulltb. The ('red it 'om'ieT
('annot issue it, BOlllb m"pr awl allow' the yahl/' of the
and it IIIll,t kpe!, a Heserve of
twenty per (,pnt. of till' total of tI,e S\lIIi adntnced.
The capital of tl,e ('rpdit F01l<ipr has been gradually
rai,ed from sixty lilillioll' to ,Ille hllndre(\ and eighty
lllillion",
Thp ;UIIOllut of its rld,';IlH'PfoI ro:-;p frOJIl
pig-ht humlnd aw! millioll' in to
two thousand a lld fonT' III ill iOlh< 111 1888, and its
loans to Commune" r .. "e similllrly from four hundred
and seveuty-eigllt to nine hundred alHl fifty-threp
Illillions. Tht' net profits l'palized were sewn and
ooe-third million in 1878. lind twenty-two
and two-thirdH milliou Fran,', in 1889. No loan if>
ac!.,"anced the propprty mortgaged yit'lds a
"ertain and durahle retul'll. It not !ldVllllCea beyond
one-half of the val UP of !l,P propp)'ty as assesRPd by
t],p Blink's eX}lprti:'. The eXl"'w;p, of negotiating tht>
56 THE m HEAl. IX 1:'i1l1.1.
loan alld satisfying tlif' Halik ahout tlif' titlf'-rlf'f'd"
come to about 3 pf'r (,f'Ilt.. ami arf' bome hy tlif'
borrower. The inter .. st .. liargf'd i" -!'85 ]>f'r l'ellt ..
and the period 'fixf'd for rf'IIHj'IIIPllt llIay hf' ... ith ... r
a or a long tf'rllI. 'I'hf' (lphtor may pay oft'
the in antil'ipation. III all. tllrf'f' IIl1d
four hundred lIlillions of FraIH'" lIaH' hef'1l a(l\'an('f'd
as loans 1852, and (lefanlt \\'a" t'olTllllittf'd only
in respect of dehts alllolllitillg to pigllt ..... 11 milliOl!'. ill
regard to which the Balik 1<1111111 it lIeeessary to huy
the I'ro]>f'r!)' itself. A" a (OIl''P(jlH'IIt(, ,)1' tl,i" illl},!'o,-
eel organisation of ('rf'dit. til .. !'at(' of illt"'rest II",
fallen throughout Fratj( ... frolll nill!' or t .. n pf'r ('pnt.
to five lIpr ('pnt. Th .. (iOVPI'IlIllPllt guarallteps tl. ..
Credit Fonl'i .. !' against ('ollll'ptitioll and lends it tl,...
a.;,istance of its offit'P!'''.
France is pre-f'lllinently a ('olllltry of Ppa"llnt Pro-
prietors with small Holdings likp thosp of [ndia. alld
its agricultural iuterp,t i" 0/ ('onsidpm hI... i IIII'0rtan('P.
Of CotmiP, the Fn'n('h 1"'''1'11' are differpntiatE'rl from
OUl: countrymen by tllt.ir n.o'""l'kahle tlll'ift,
and forpthought, and t hpi]' powprs of
and mutual help. The"" llH hit, 11I' .... ],O\\,l"'''I'. 1'''8('11-
tially the C'reatioll of tit ... ('hallgp that took place III
the early part of thp ('Plltlll')" WllplI the of
the Xoh]ps and the Hi,;IIOI'" and :\Iona"terit's Wf'],"
escheated to the and parcplled out alllong Hie
Peasant Farmers.
1:"1'1.1:'1 l'tlLITJ('.IL ECtI:""'IY, :i7
Tht' ll("'lIllllb of t ht' Frf'l1<'h I'pa"lIltry gl\'PII
III th. lIarrati,t', of ,\lr. Artll11r YOlIlIg ill whi .. h
I
,rf'(, .. d,d tl,is "TPat .. Imn"p, do lIot ,how thllt tht'rp
"
wa, th(,11 allY ,1I\'j, admntage pnjoy.'d hy them "'Pi'
'"U ]>('0]>11', Th" Frpnl'h I'pRsant I" IWsidp,. til"
I.ro]>ri('tor of hi, allll has 110 IAlml-Tax to
I,ny. Harrillg t h."" dift"'r,,]H'''' of hi.-tllry and l'hanlt'-
t"r. thp "oudition, in Fran,',' arp likp tho:' .. "f
"'."t .. m hHlia. '1'111' Fn'll(,h I,pa"allt i:, III
d .. h1. IllOrp thall I,alf thp 1;nJ(1 h .. iug Illortgngf'd. hut
li .. htl" 011 hilll.
.
illl]>rtI"PllIplI (" Illadp
"aid with p'jlHlI trllth
ill thp
hp,'all"- thpy rPl'rp''''lIt
];11I d . \\' hi., I. ('1\ n n ot hI'
'1'1,, rp-oruallizpd """tpllIof Lallil ('n'dit wl,i"I, has work-
,.. ,
\,d th,'''' 1I0llCl"r" ill FraIH'p, ;nil I ,\lI"tria. amI l[lIn-
gm'y. Illay. tl,..nfnrp. h. "af .. ly t",!,pdpd to ,whip,'p
p'llIal sm'('p:,,; ill !JJ(lia.
III rpg'ard to Italy. til",>, ,,1""'ITatioll" "pply with
that tlIp iI\"prag't' rat!' of ilJtprp:-;t 011 10(ln:o' WRS
.. ight to tPIl IJPr .. IIt.. amI th .. alllOllllt of thp ""hts
,Iuu,,pd Oil tl,.. Inlld ill ltah', .'x"lwlin" "(,Ili.,,, nlld
.
BOlliI'. wa:, two t 1.0 II.-allt I :'IX hUlldrf'!! alld nillPty
III ill iOll", whilp !hp IIpt IIlt'OIl'" wa" four hnndrp<1
million>. alltl tl,.. (1""pn'IlI"llt .har ... - on tllP land WIIS
,..
OIl .. Il11mln'd II lit I tiftp.'n III ill iOIl'" llf'titwtillJ,! (ron-nl-
IIII'll! alltl nth"r "IHlrgp" 'III" hll1l(lr..o 1111(\ t",pnty
million,. IIlIll tl... illtpr .. "t 1IIl101iUt. on .. hundrtd m,d
58 THE HE-OIW,-\:"I"ATIO:" OF HEAL CHE()(T /:\ INDIA.
forty Illilliou", tIll' ownpr, had only one Illlllc1rpd
and forty millions of rp\'ellllf' at their disl""'''!. \\'ith
the increast' in (,U\t'rlliltellt tax,"" ami in thp
chargps. thp halalH't' I .. ft in tIl!' hands of the Land-
O\\'nprs gnw I""s t'a('h year. and this drew tlw
attention of the Italian Statt'8lnPll to tht' IlPcPHsity
of takin
o
' early acti"n 0]] th.. lint, followed with
n "
i'lieh hrilliant ,'I\('('P,',-, ill 1<'1':1II(,P.
In 18(j:! it \la, a('cordillgly [,rol""prl to start a
(!pntral ('r"dit FOll('iPI' for tl,," \I'llolp Kingdonl with
" ('''[,ital III' fOllr milliolls of 1'0\\11\1,. :--t\'rlillg. a 11(1
ill\'estf'{l with exdnsire [,ri,iIPg,'s. aml 1,,,11"'(\ hy a
<roH'rnment suh,ddy of fOil\, I II Ill< I rpd t hOllsaJl( I 1'ollllds
It was not 1'0111\(1 [,,,,sihlp 10 flont H,,,
i'cllPllIe in its Illig'" l'rol'ortiolls. alld ill 18(j(j a
('oltllll'omise was adopted hy lI'hid, tit" A,gPllcy of
SPH'1l existing Ballb \\'as utili;,,"!. alJ(1 l'oWE'I's weI'''
"onft'rred on tltelll to operatp ('xelllsi\'ply within t11"il'
defined Zones. and deal ill lliortgilg'(> hu,.iIlPss.
rules of businpss \I'prp thp same "" tl,,,sP of tllP kindrHl
Institution ill workillg order ill Frail!'''. Loau..; wcn>
to bp adYan('ed up to half of tllP \"IIIt' of the pro-
perty mortg'aged, ancl gradual li'lllidation of prineipal
and interest was to he 11l0Yic\pd for. Tltl" intprest ratt'
was to j1P 11 uniform one,-ti\'p I'pr t'PIlt.. and tllP
HHnks werp 10 is'IIe Xpgotiahlp Honds, aml withdraw
thelJ.} gradually as instal II 1f.1l b; wpre paid or satisfiptl.
H.-tween lRG(j amI lRR,i. thirtpen millions of POUJl(},;
11'I'n' Il'llt
fifty-fin
1:"111,\:" I'OI.ITIf.11, Uti:"",,\,.
to
.. i"hl
.-
thlll"alld II"...,
.\ft, r IHH:,. tlJt'
Wa,- d01l1' IIwny willt. alld all" Bllllk III' '\.'.'oeilllio"
will. II callitlll or t;,(\1' 1,111,,1,..<1 11,,"1'111,,1 1'01111<1,
Was pl'nnitlO'd 10 11'II1I'a('! "'Ol'tI,!'H!!P hll,ill""" II III \"1'
I hI' eOllflit iOB fIIPlltiollP<\ ahm p. Till' of 11 IIl1i-
t'lI'IlI ratp of illtpl'p"t Wlls al"o dOll'- awa.\ with, IIIld di,-
'I' ... lion lI'a" "lloII'O'd to dllll'g" rOllI', fOlll'-alld-a-half IIn,[
tin' 1'1'1' ,pllt. illtpr ... "t III'('ol'dill:.,: a" thp p"'ri,.1 \I'"S 10llg
or shorl: tl ... 1'1111' 'of li'"ilillg adnllH'(" til h"lf tl,,'
'ahlp \I'll" also ""Iaxpd alld loa"" ,1'1''''' 1"'rlllittl',1 IIl't ..
tl,rpl'-fifth" or tIll' ,alII,' lIlld,1' thi" 'i .. \\, [.'111', tl",
'iatiollal Ballk of Italy allll "'1,,," "thp" Ballk- 011
IlIort<'Il"p (lI'alill"'" ill a,ltJitioli to Ih.-il' otl ... 1' hll,iJII','
:-.. ,.... ,....
at :\aplps, 1-1 Ol1l p. Bologlla. alii I ,,'Ill'" oth"r
'I'ol\ns. Thp .-\1I!I'llriti,, of :-iiPlilia lI ... n tl(O'
tir4 to work t hI' <,plphrat ... " Pi" :o;y"t"11I of lOlli"
on I'lpcigp" tI, ... IIIIIHlrf'(i ypIII'S ago. Th,
ltalinll Lilli' allows to th .. ,, Hnnks grpllt fll('iliti"" 1'01
t hI' "I'ppdy 1111<1 ('lIpl1\' r .. 'ol ... "f 1I10rtl1;':lIg" ,\"1>1,,, ,",,1
till' (iOW'l'lIl11p"t dol'S II lit , a, ill FntlH'''' "x"rti" .. 1111\
adil'P "ontro\ ill thp of tilt' BII"k,: IIfr"il'-
Thp w/ti('/t issu .. tl".,,.. IIl1f\t'rtak., to , .. II.
t hI' III 011 t I... Bowl" n.... 1II11t1, I J/Iyn hI" I ..
"1'111'''''', IIwl tllp holtl .. r "", "" claim ug-aill"t lilly l,ri\II\o'
,"nrt.!!IIg'or. hilt ftgaill,t tli" BII"k. .\11 tl,, piht
,..
BIIllk_ plwll "tlll''''' '"UPOll,.
\11 HO'lgilllll. th" Fir,! Iu,tituti"" "fth ... killol II,.. ",.
60 TilE HE-OH(;A:"iI"ATIO" 01' CHEOIT I" IJII))JA.
now ,on..;idp]'iu(.!'. "alll'd Lf' Cai..;sa Hypotht'eain.
p,-tahli';]'P,1 in 18.).) lIit], a \'if'II' to ofl'pr to
,al'itali..;t, for imp,ting thf'i)' ,.;aft'ly, amI to
honnIlP)" fo)' horrowing 1l101l!,.\' at low alld
(1iahlill(.!' tbpm to elt'ar off thp l'rin"ipal and interf',t
:tlll,)llllt..; hy instalillents ol'pr a long ppriod. TIlt'
I'oller..; of tlie Bank were enlargf'cl ill 1886, and it 1111"
"inl"> taken ti,e name of l're(lit Fonder de Bel gi'l Ill'.
TI'Prp arp other Inst.itution..; wlii,'h do thp sallIP husillP,"'.
TI,P Bplgian AutllOritie,; had ullclpr eonteml'latioll tilt'
<'l'pntinn of a Central In..;titution whi('h was to han'
pOll',,. hi ndnm<:e money OIl lImh'p". Forests and "rood,
"l' to '"H-fourth tllPir a,;,;"";,,,,<1 nt!up, and on lands np
1 n a I,,'] 1'. Thp horn)\I"')', 11"'rp to pay fi H' and a 'jlHlrh')'
I"')' "Pilt. intpL'P,;t. II'I,i .. h nih 11';1, to illclndp tht' :-;ink-
Ftllld anel of 11I<lIHllfPJllent and rp( ..
1-1
tion. and the l'prio,l tix('d for rpj>nylllt'nt was to hI'
forty-one years. The B'\llk wa, to i"IIP fOlll' per '(Ilt.
Bonds fully eOH'l'PCI by ti,t' 111 ltw of tI,P ]>)'()I'prty lIlort-
gaged, amI tht' Bt'lgian (;'OI'I'l'J1II1t'lit to IllHI(.I'-
take tlit' work of collectillg II", installllt'lIt..; dlle h)' til"
Bank's (Iebton; throng], il" Tl'ea,;llry ,\!,!"lItS. amI ill
ease of arrf'an' sl'pcial f1l('ilitit's WPI'P to \)(' ,,1101\'(<1 for
n'alizing' the monips (111(', tlip Hall k',; ]) .. ht,; l1Pino'
,.,
allowed a priol'ity O\'P!' all otllPl' dt'hb. and tlip tmns-
aetions of the Bank \V"l''' to l1P f'XPIII]>t frolll all taxes and
duties. The Bill \\'as ]ms';('d hy tl", LOII'PI' Hom;e, hut
before it reeeil't'(1 the a,;sPlit of tl,P :-;pn"t ... a Political
1:" f1!A:" POLITICA L EC'O:"U,\[ r.
131
oeeUlTE'tI. am! 110 furtlu,r adioll \Vii' takell \ll tll ..
lIlatt(,f. The ("ollee"i01h; I'ro1'oo('(\ ;md ile"f'pt"d hy
the Hou,,(' of H('jH'('spntatin'" <I('''''ITf'. 1,0\\'''''''1'. ttl he
'Iweiany hOi'll(' in lIIind, iI" thp), illdica!(' tl,,' ('xt"lIt of
'"l'l'ort \Vhi!.'h l'ontillE'llbll (;O\'f'I'IIIl1('nt . .- :11''' pI"l'a('('d
to ;!i"., in tllP work of H'-Ol';!allizil!.C: ('rt'tlit.
Tilt' F('(lpnJi :-;tat(', of :-;witzprlalJ(1 flll'lli'\1
illlpr('sting ('xanljtl", of tl,i" ,nlllt' liberal I'oli,'). [II
tllps(' State". Pril'1lh' ('''pitali"t,- . .- .. ldOlIl l(,lld 1Il0lJ(',Y Oil
tlll-'ir own Tlu--' 'lnrt,!..!,l1;..!,p (illd ;--\cl\ing's BUlik:---
liltunlly lIlo11t)l'olizp tl,, hll"illt",. '1'1,(,,(,
H:lllb lin' pitl"'l I,"n,l.\' :-;l1lt, In,tit ntioll>', (II 01' fl
IlIix(,d charact ... !'. TIIP BHllk of tll(' ('antoll
(If Bel'll" i" iI :-:tat .. lll"titutiOlI. nlld i" tllP 1II0"t illll,or-
tallt fll"till1tioll (II' it, kiml ill '1'1",.-,.
:-:tat .. IJl,titlltioll" ;IJ'(' IIIO\''' 'U('c('"flll thall Prilillt ''I"
lllixpd Bnl\b, ()f ('onr" ... the :-:la1e Ballb tI" lIot
,:tti"f\:tll delllantb. il.lld thert' i" tl,,!:' fnll ""01'" i'or
prilatp ('lItprl'rizt', The t-Itatp Iw.;(itution" It:IIP tlli;.
a(ll'lllltage OI'er prilatp Baub tbat. tile), do nut 'c n" \1'
lip tlle mt .. " of illte),,..,t. whilp their lllll}>l .. means t'llahle
thelll \'irtunlh' to j'('''nlate thp mtp of illt,..r(':.;( all olpr
.' ,-,
tIle (ountr.". 'I'll" Bpi'll(> Balik lUI" )'ft\IIC(t! it" rate of
illterp,t witllill tbp I'a,t fiftpplI year, frolll fi\'e to four
I'Pl' (,PIlt.. aIHI ha" tiler,.."y donblpd awl tr('bled thE'
l'oll1l1le of it.- Imsin(',;". The ripl'""ib halP illl'rpa,. .. d
frolll {; 1,119.G2!! to {; ami the Loans fro Il I
.c L600,OOO to 1,; 3.200,000. 1\[0"( of tll ..
hal'p p:1f'h flipir SPlJal'f\tp :\(ol'tcra
o
'l' Halik, and thoncrh
:"""I l"'"I r"'J
l'al'ing' Halik:.:, which ,\pa\ in erf"dit, are
g'PlIpra1\y I'rilatp, yet in lllallY of thf" eonntry the
('OllllllIllW': ",.:.:i:.:t \'\4"n thp:.:p hy taking- a ("I'rtain
1\\1II1I)('r of ,haw" '\Iortg'agp Hanks Ipml hy
WilY"!' tir"t char!..:p, alit! eOllll'f") hOJ'l'Owf"rs to
di,,'hilrg'p all l'I'Plillll"; ..!ailll':, The amortization
arl'angPllwnb pnahlp tlw ind.-hted Agrienlturistl; to llllY
oft' tlJt'ir ami frpp thpir Innds frolll iIH'lIJnhrances
witll ('prtainty IIn.1 !'IlH', ('11I)P], the dirf"ct sy,tf"1n of
el'f"ditors pxp]'"i,." " III ora 1 tlltplage OJ' riomi-
Ilion o\'er the rlehto)'8 who :.:ink in d The rpia-
t iou,. hetween a pri ,'at.p d"ht 0)' a lid ('H,ditor IIa VI' a
ill eOHl'S\": of tlIHP. to di:l\Opl0l' lHl1tnal
nnrlpJ',;t,mding and hittpnlP':':, Ti,p Eman('ipation of
tbp population from tlli:.: ';"'\1'('0' ()j' IHoral df"grndation
loy Illt!'rpositioll 01' the BUll b lUI' I'royerl of the hig'hp,;t
,,:tlup as an ag'f'l1n' for th ... Ed II C;J ti'H I of the Ilf'ol'le ill
tl1P hf'st l'irtllP" of ('itizPll,,\Jil', TI,l' RanK'" rl'latioll';
to its .\!'htm:' al't' of tlip ,.;ilJlplp,;t .. \'aradf'r amI invohp
110 PXI'PIl"p, TIIP 111"11 11'1'0 ba I'P JlHmt'y, ali(I
want to imp"t it "nfpI)', tim! that th,,}, haw not to
hunt tllt'ir (\phtol':', jll'fl1ire illtn til!'il' ,;ol\'en<,y,
and 0'0 to law to tp,;t t.he r":'lIlt. 'I'h" man who
"
ha,; ,aved 1ll00U')' wld .. 11 lip wanb; to lpncl goes to
th" Bank. pay" down hi,; money as a l>!'l'0:,itor, or
buys tlI!' Bonds of till=' Bank, and wh!'n tllf' :.:ix-mont.hly
instahllent falls due, he signs the ('oupon, and cashes
1"1 '1.\" rOLITlCAL 63
it. An illllllelll.;e waste of power, !.illH'. and money is
thlH oa\'prl to him Hnd to the debtor. The hURine,:s
lw('omes "pel'ializpd, likp any other husiness, all risks
1\1't' Hvoided, and all the hendit.s of a "p(,lIl'p invt'strnent
awl ('heap loan art' ,:t'l'llred to the JIIonipd and needy
da'':ps. TIlt''''' :-;wi"" 'Iortgage Hanks furnish, per11al'"
tllP hp,t "x[lJlIpl" of genuine co-operatin' effort that
is seen in any part of tbt' world. Farmers club to-
getltpr for ti,,, p\ll'(lll\':p. in a joint way, of Agricultural
Cattlp, of (If 'fanure, Pastul't' Lands, Cheese Dai-
ries, or for draining 'lan.;1t La])(}':, and comtruding'
Country Hoach, and thp Hanks help t.lH'm to do so 011
"pry !'aq t!'rIlI s.
This I'rilleiJ>lp of ('o-operation for l'Olllmon l'urpo.,:e
was fir,:t work"d out in (; "rlllany (Ill lines formulate< I
hy Haiifeisen, but they baH' hepn upy!'loped most wide-
ly and beneti('ially in Each lU!'lllber
contributes a tix,,\! ':11111 I"'!, lIIonth or ye.ar, and the
Association also rp('piws J )"l'osits. Out of the Collec-
tions and Dpposi ts, Loan" II rp made to thosp who nped
them for buying Catt!p or Seeds 01' Manure. The
A"oeiation has a on tIlt' Cattl!', pte., hougLt,
t he Law provides that if anyone of tLe
;Upmbpr:.; breaks hi:.; pnQ'agement to thp Association,
and selJo the Cattle, tlip act not only a civil hut a
cri lJIinal offence, of \I' It ieh a .'Iagistrate takes instan t
cognizllnee. The engngt'llwnt has in this case to be
,executed before the 'Iagistrate so as to avoid all future
complication". -rhe,;p 11 Tp("ei \"I' hpll'
from the ... (ioll'rnrnent". and in retnrn (hpi!'
al'eOunts arp 01'1'11 to illSI'"dioll h," (Iffieillls.
This COllll'itt ... " tbe sl1llllllary I proposed t,o giyp of
titp most I'Pl'PlIt I, i"tory of t I If"' H ... -org'llllizatioll uf
(:rpdit ill "OllIP of tl,p I'rilleil'al ('olitillPlital ('onntrit-'s
of Enrol'p, TI,t-' l'i't,"'lJt ('i n' 11 II I,'!" I ... ,." "I' tId,. Conllt!'y
Ih'll\alld that (lIP Iff"rt., IIIIHI" hI' tl,.. of '0
eOlmtri .. ". ali<I wl,i"h h,I\'I' 111'<''' attendee! with
"uch "nl'<'p"". ,It,,,,ld hI' "nrpfnlh ,tlltiil,d hy liS with
" "i ... \I' to pradil'al "dioB, '1'11("'1'" "'"I I,.. litHp douht
tl,at. if silllil"r attplll!'t, har! h"pll 111111),' in Eng\;lJId.
tilt> Hnlt>l''' of India \\'ould not han' f"il ... d to takp tl]'on
thpir "llOulrle!'s the work of He-orga"izing Credit on
these linp" in India lun;); ago. Thp .. irl'l1111stallces of
Englanel are, Itowel'er, 1'1'1'111 iar. TllP ,'a"t lllaRS Ilf her
populat.ion l'on!'i"t,.. Ill""t I Y of \I ".gt-'-pa mer". who
l'OSSP"" neither Jam];; 1101' 1'"11''', llllr al'l'lialll'(-" of tl'Pir
own. Tlte rich "11.1 Lall<lIonl, OWIl thp
ami awl mael,illl'r\'. lind faetol'i!-':', and
intelligent IIlld \I'pll ol'!..:,,"izI"'1. nPNI no "I,peiai
h\c'lp. It i" tli"", I'P"ulial' ein'\IIII"t:UH'!-''' \\'lli..!1 llilye
marie it sll1'erHIlOtl' f;,r tht' of England to
devote their attE'ntion to tit""" IIl"ttlc'!'''. TIip), arp
naturally disl'o"erl to takE' earp of tlieir wag .. -parllillg
Clas8es, to fel'd, dotht'o and hOIl'" t 1"'111 I'I'<l)'erl)'. to 1'1'0-
vide for smaller hollL', of work. to arrallgp for thp COIll-
pulsory of the comfort.' alld c,?J1\'''lIienC'f's
65
of Fat'tory Hand". Thl'''' traditions illll,,.1 thf'llI
a!,,,) to tllrn tlwil' philnnthrnpie attention to Fadory
Lt'g'i"latioll Iwr". whil'h. thollf!:h ill ib way,
hilt a dro\, in the ocean of Humanity in India.
()nr agrieultural and POJlulation are not wage-
Thf'}' own their land" and and
of tradf', and their ,hop", and fador-
ie". and their mttlf' and ('art,. Thf'y llIostly work Oil
their own account, an'\ if tl,ey hlt\"" nt) or 'I1\"ing'
of their own, as they generally ha\"e not, they lIIu"t
borrow mon ... )', and rPl'lt y it;" they IlPst ell 11. Thf'
necessity of Hf'-organizing ('r"elit tranf'al'lion
not confinf'd to Agri('lllturist t'ia:,sp'. It i, a gf'lH'l'n 1
necessity creatf'(1 in this l'onntry hy its ('ir('llmstan('p&
and and any meaSlUf'S whieh tpnd to
this husiness frolll its prf':5ent ('hao", and rpstore
certainty ami honf'sty ill it. an' "urE' to put lIell life and
energy in the ho(ly \,o\iti<-. Thp question of ('ndit,
abo"", dol" not ('OIl(,pnJ Agricultlll'isb
alone. It f'IPlaIl)' eOlllems Slinnprs IIml "'ell\"er,..
Carpenters, Smitl1', DYf'rs, Potter", Hra" and Copper,
Silk and Elllhroidpry worker", Shol'kepl'f'r", Carriers,
and all the Trad"f' and Profes,ion, that are now
practised in thi" Conntry. It will lmw heen ,(,f'n from
the summary gil"en ahovIi', that thE' Stah'';))lell of Enrol'''
have realized their in this lIlatt"r of atfordinn
,.,
facilitieH for tl,e He-organization of H .. ,d Credit. and
given it practical effect in mnous way'. 0) eitl'f'r hy
GG THE HE-OH(iAXISATIOX OF ilEAL CHEIllT IX INIlIA,
lending the lwlp of its Official,; for ('ontrol or manage-
ment or inspection work, or (2) hy or (3) hy
undl'rtaking 01'. (4) hy giving a Monopoly
of hu,;iness, or (5) by faeilitating the work of Recovery,
or (6) by eXl'ml'ting thpir from all StamjJ
Dutip, and Incollle-tax and other The ('ir-
{'umstancl's of r lIelia furnish strong grounds wily thl'
Go\'ernllll'nt hen' should IIPI]> tlds work of Re-organiz-
ing ('rerlit in all tlI"'(' ways aeeording as Im'al
difficultil'!' 01' aptitur\p, lIlay suggest or justify, An
.. !fort was 1111\(11' in this part of thp Country to start an
Agri('u\tnral Bll1lk 011 thl' lilH's lai(1 down aboH', 'I'll!'
\I'll'; well 'lIl'l'Ol'tl'el tile Local GovernllH'nt,
and hy the (jon'l'IllIIl'llt of IJI(1ia also, acting under
tllP a(\\'iees of :-IiI' E. Baring, )lOW Lord Croml'r, It
was, howewr. llt';!atinr\ hy tIle Iwlia ()ffice Authoritie"
hlame Ill'ed 1)(' lai(1 at the door of any hody for
tlds untowllnl result. The Ellglisb Rulers in Illdia
are brought faee to faee witll thl' spl'('ialities of Indian
life, Ilnd realize their In England till'
Authoritie!' 1111\,1' not the ad\'anhlge of this touch with
aetultl life, anrl tlleir Engli,;h traditions naturally l,rp-
dispost. thl'm to rl'ganl that til .. Sllt'h, hilS no
flllH'tions or re'l'onsihilities ill this ('onnp!'!ioll, Thl'
prollHltt'rs of tilt' Agril'ultnml Balik rJesirerl thnl e,O\,.
ertlnu'nt ,hould sam"tion tIll' f'xl'erinwllt in 0111' Talnka
IIlulf'rtaking 1111 into tIle I'rpviol1' rlf'hts of
\::ri("nltllri,t" whi("k \I 1"'11 ""I'rtaiwd, were to
I:>iJllA:>i POLITICI]' E('O:>iO\IY. li7
hI' paid off hy the tllP Bank
to make good tlH' "1lI1l "0 paid OJl of it;
hRing allowed a fir,;t ehHrgp
of the Ryots so benefitp(l.
on t h .. 1lI0rtgager] Estates
'1'1 w Ba 11 k nndertook to
,'harge yery low )"atp, of intl're,;t. alld to )"f'('oq'r th"1ll
in instalment, fiwd II'ith tile 'lJ'i'r()lal of (JOI'prnment
(Iffiepr', To lH'PI"PJlt all di"I"Ilp" it <lgrppd tn I<"al"e
thi,; work of Collpction of ill,;talnlPJlt" dlle, in thp hamls
oftlw "ill age Authoritip,;, wllO \lPl"(- to rpaliz,' the instal-
IIlPnb a,. they now r'-alizf' tliP A,"'P';';IIlPllt of GOl"ern-
Illl'llt or iii; l'!tfJni all l'a1H'f',;, La,;t Iy, tIlP Bank prayed
that As,;('ssmPlIt within thp an-a so d"alt with should
not hf' raj,,(], so a,; to distllrb tl,P '"TangelllPllts they
min'ht entp), int". aIHlthat th"ir trall"adiom; should
,..,
he exemptpd fl'OIll all taxI" alld ,'Ilargl';. In ('on;;ider-
ation of thpir to finance allI] work tlH'
<'oneern, am] ehargp 10\\' r'ltE''; "I' illtp)"P';t. thp (;ol'prll-
ment was to Iwll' tliPlll to "btain 'lwpd;' and
('xecution. It \I'ill Iw SP"11 that nOlW of tl'l- "l'pl'ial
I'rivilegp, ami ,'olll'p"ion,; a,k,.d for 1\"t']"P without their
I
,)'eeedent ill tilt' ('ndit FOBeiel's alltl Lam[ :\lol'tuaoe
M l"'"I
8uh,j<iiz .. '[ alld 1lP1l'pd and <,'Illtml\p([ by the
European Htates. Thp ;-;cllf'lJIe, hO\I'PIPr, fpll throllg'h
thE'll, for l'PH';On,; which it is lwedl .. " now' tu l'pjate.
The diffieultips of ilHlian lifp ace, h')IIPlf']"' too sprionB
,md jIPrellll'tory to hI' sati,;facto)'ily rii"l'o,(',\ of in any
othf'), way, Illlrl tlIP '111P"tioll iR to fol'cP it,;plf soon
upon pu hI ie attf'ntion. A Il'pady we IWfll' tllIl t the
68 TilE HE-lJIHi.\:'>I"ATlO:'> OF IIE.\1. CHEllIT (X (:'>111.1.
!\Ia(h''''': (ron'rIlIlH'nt has al'l'oillt.,,1 a Offit"pr to
inljllirt> into thp "llhjt>l"t, Rnd tht' tillit'. thprpforp, ""('Ill'
opportune to \,n'" thp lIlatt .. r lIH'rf' npon
Rttention of GOIernmt>nt. hpl" lWNled for tl",
ypry eogt>Ilt reason that (""lItml alHl
an' npee"sary to ('ontill(,lllp. :\0 othN organiza-
tion in the Country ita,.: ,;I]("il a derpr,itipd, inteliigPllt
awl widply diffll"t>d at it" '1'1,, 11\-
tprp,.:t" of th(' :-;tatp also, arp lIlaterially inyo!lp(\ ill tilp
matter of thp well-being of tilt> 1II0":t. IllllllPrtlll" and
lea"t helpflll Cla,.:ses of tht> taxpaying pOl'ulntioll.
The :-;tate need not t>xl'elld its Fund,.:, T!tp FIIll'I" wi II
he forthl'oming to any alllonnt if it only prollli"," to
or;.o;ani;'.P the Agency, and spt it at work. 'I'hp Po"t (IIne('
8lUl Savings Banks depo"it" are ready to hand .. \11 tl,at
(ro,t>f1lment has to do i" to orgalli;r.p Di"trid or ('it)
of Indian to ellll'owpr t.h"11I to
recpiv(' at tixt>d rat",,, ami IplIl tllt'lII at "Iiglltl)'
hi"h .. r ratp,.: to thp horrowpr,.: on till' """lIrity of 1"lId,.
.
or !tOilS .. ", &t'.. tlI .. ('Xl'P":": rat .. pro\'idillg ti.r a
IIl11orti7.Rtioll of tilt' dpht in" d('tillilt I"'riod. a" al" ...
In,umll<'t' ellarge,.: allel workillg PX\'I'II"I"'. TIlt' joall"
oftilp"p Hi"trid ('ollllllitt .. p" "I wHirl h,' ,,11"'\"td
()\f-r al\ "th .. r dehts. IIml pX"'lIlpt .. d frmll all dutil'" and
, .. daill alld "l't't'dy eXt'(,lItioll ,.:llOlIld h .. pf'l'Illith'" to
tll .. llI. 'I'l,,, eXl'f"I"ipn('p of the working .. f ,illlil"r hodi.,,,
ill EIII""I". 1111(1 it rnay he lIotpd ill Eg,"pt abo, jm.;titi ... ,
tlU' 1"'1'" 11,,,( ti,., I"""" will lip Ipry alHl tlop
l:\"IlLI:\" l'ULlTH'AL
G9
benefitR incalclllll hIe.
holdR equllll)' good ill tid, ('ollntry nhollt eyery oth!'r
Trade and Inrlu,.;tr.\". The rp<.'\I]>emtil"e of
Xllture and Art an' limited, and ('a11not ,tan(1 the elfa.!
weig"ht of prohihitil"e rntes of inter",t, Iliad .. IlP('e"arr
by disorganized Credit. and ii,,, \l1l('ertaillti .. " and
and eXl'en,.; .. ,.; (If ('ilil I'ml'Pf'dil'c.:,,;. HplllOye
tlwse difficultie, m,d I,indralll'p,". alld ('nrlit I\ill ri,e to
ib natural amI IwaItl,y 1,,1'1'1. '['lIP gl'lrir>" of IW:1l'e
are far nobler than tiro,,' of war. Th .. Irholp ('ollntry
i,.; looking up wit.h wi,tflll Py", for a :-;tat",II,an \\'ho
will guid .. it, destini"" in tlli, ,g}'l'1It m,d help
it to win the raee of life awl rel'il'er1 health, and
nation>!1 \Vell-heing.
lIL
NETHERLANDS INDIA AND THE
CULTURE SYSTEM.'"
...........................
'['HE Eeollollli,' I'r"ld"111 "I,i,.I, II", of
India has to gral'l')p \lith ill thp illllllPdiate hit 111'1'
of this ('ountr)" i> of H fal' 11101'1' l'prPlIll'tnry ('han,,tpr
than evpn tllP 'lllp>tioll of Frontier again,t
Forpign aggrps>inll. IIll,1 it diffienitie,. awi
nnl'ertainties by tlip ,illp of \\/tieh thp difficnlti," ;lIltl
of tilt' military ,ituation IHt' hut (hild',.
play, The Prohlem of ",ttling .xp\\ Contillf'Tlt,.. alld
planting on yirg-ill ,"i I '!Treater Britain:;: Ila,. IWf'll '0
Httisfactorily soln'd hy thp I'atipnep and geniw' of tltp
British race, that it might, at fir,t sUfl'ri>t' thp
superficial obserH'\' th"t the coml,aratil'ely easy b"k of
reclaiming InrliH from the aneipnt hOlldagp of Fpurlal-
iSlIl and and bring'iug it into linp with 1I10<lt1'II
ei l"ilizatioll. II it It it" freedom of all( I t hI'
incrt'a>ing of Commerce and
which 'lll'I""'lIlpnt tilP aneipnt single resource of Agr:-
cultmp in \\'p,tnn Europe should 11111'(' batRed tlIP he"t
'* Read at the COIli'(>l'(>ure, Pooua, in 18!IV.
[:oiDIA A:" [l THE erLTun: SYSTDI. 71
eff('rts of Britisll Aftt'r a (,entury of
mit', the situation is II, hlallk and dreary as eyer it
lwfore, nay, in (,f'rtaill '''l,,'ds, it h"" gTOWll worse by
reason of tl,e impllrt of' ei\'ilized Foreign Hult" and
llnrestricted Excl,angp. allr\ undrellllwl\ of of
eO'"lllllnication. 'flIP l"o-<>rdilltltion of IlHlllstries, which
e"tablishes a lwalthy 1'l'<Jl'ortion IwtWPC'll the Hural and
('rban Populatioll';, )",<1 Iwen di,p]", ... d to" greater
extent than ere!" it Wl1." l,pfoJ'(', and ["hi illerpasf'd the
dt'jlendencp of multitlld," 011 the ,nil f'xl"LHstpd hy
o'er-cultivation. The growth of POjllllntinll rlol's not
n'l'n""t'llt to tllP same extent gl'Owth 1Il material
('Olllt')l't", awl has led to the ahsorption of waste lands
till. ill "ome pnrts of the COUlltl'y, the last margin Las
hePIi l'e:l('he,1. and milliOIl" uie 01' starvp when a single
:\1011:'0011 fails. The increm'ed TracIe and Commerce of
thf' Country represents n ,teadily diminishing pro1)or-
tion of ent.erpri,p ;",,\ ,kill engagt'fl ill it, amI
tI,e llIonopoly of Politil';,j puw"r i" made more iUl'idiou,
hy the monopoly of cOlllmercial We<llth anrl manufac-
turing activity. The Bihl'>-l'l'OllIi"e that' To him that
ladh, milch shall be given, ((ltd jm))/. him t/'II/ "nth not.
tlte little t/tat he l,ath s/tatl be t((/.:en ,;UIIIS up tht'
,ituation,
The Administration cannot be eharged with either
J1f'glect 01' indifference to these changes. It has been
honestly trying to apply palliatiH's, it ensures pE'ace,
protects Property and Labour, and secures the adrni-
.)
, -
l:-;fl!A:-; rOl.lTWAL
ni,trathn of .Ju"ti(p to all. It enCOlll'agps f'migrntion
to forpign partR, alld immigration from clemel} pf'oplf'rl
to spanwly inhahited tract". It haR endea-
voured to delplop 111'11' sources of \\' pa ltlt hy encoumg-
ing piolH'pring entprprise. Aboye all. it IIi!" tried to
oppn up the Country and ntilizp its Water in a
way which cornlllall,b admiration. Its pOI\'pr" of action
are limitNl and """trolled by higher Authoritiei'. and
it is not, thereforI', Ii'Pp to Ildol,t certain },(,lll('die" which
('om mend to ('''lllltries iII
Europe. AllIprica, and the Hritish l'olonip" t" protect
themselves again;;t the effects of foreign ('(>l"l'ptitioll.
hut. with thi, excpption, everythillg 1m" IWPll done
that human prescience cOllld snggpst, as l,ossiblp
remedies, Finally, it is open to cOllviction, and even
l'l'ppared to rptrace its steps. if it werp convinced
hpyond doubt of its mistake. This circulllstance jIH;-
tifies hope, and encourages the ('ffort:; of who
think that, notwithstanding past failnres, It way llWy
he found Ollt of the diffieulty, which invoh'ps 110 seriolls
,\pparturp frOln established maxims of (-'i'I'ilized Hull',
and prolllisps at no distant datI".
J proposP in the sequel to gil'p II bripf sketeh of' a
grpat Exppl'iment workpd out hy II Enropea\1 ]>(}\\'(r to
itlll'l'Ol'f' tIt{' E,'ollomi" l'onditioll 0f its Asiatic Dt'l't'nd-
Pilei",. I1lHler ('in'lIlIlstfllH'pR \'pry similar to thosp wltich
ohtain ill India. Th .. rp, as hpl'p, a l'ivilized EnroJ>t'an
POWPI' wa:< ('ntl'lI,,!pd with tl", 1'1111' of \'ast Tprritol'iP!!
:'iETHEHLA:'inS IlIilllA A:'il) THE Cl'LTUlE SYSTDI. 73
inhabitpd by a l'olllparati\'ply barbarous pt'o1'le and the
pXIJPrimpnt wa:; underta kt'n a 11(1 prpst'lTetl in. not
pllrf'ly from I'bilanthropie moti\'p,,:. II'hi"h l']"(we lI'pak
ill the long run. hut froll\ Illotin',.: of and
rp":lllted in a "\!tce". hy the sidt' of which tht' com-
parative failure of the pffurts of Briti,.:h Hllh'r": l'rp:;pnts
a \'pry sugge8tin' 'Olltra,.:t. Aftpr \\()I'hd for
thirty ypars, tlH' f'XI'Pl'iIlIPllt h",.: 1""'11 abandoned,
l)p('ause tlip ,,:pf'cial 1>l1l'po.'P. wl,i"h dil'1ahrJ its adop-
tion, ha,: Iwen to 11 large PX(Pllt at'()llIpli,.:l,,d. Thp
parallel is not, of ('OI1I'.-<P. (', II IIplt>te in ,d 1 rp"l,pds.
The Country where tlw ('x["'ri""'llt was tri,tl a
sllIall onP. A:'< compArpd lI'itll thp \,,,t pXl'all":" of India.
Thp people, Alllong WhOlll it wa,.: tried. WPl'e a more
hOll1ogpneolll; !'aee tl1<l1l tl,o.-<p who illhabit this Great
('ontinent. 'fllf' 1'rp\'itlli' lii,.:torical traditions wpre also
llot the "aliif'. Hilt aftt'r 1llaking all a1l0wa11('e for
these diff"ren('PI;. tl"'rp r"lllains a snffieil'nt substratum
of common, conditioll":. wllieb jll,.:tifil's the assurance
that an expel'illl<'nt Undf'I'iakf'll in the sallie spirit here.
with thp npl'p"rrl'Y adaptations to suit local ('onditions.
has a l'l'fI":t1llahlp dUllI(,f' til' atb,inill.!;,.,t qualified
"I<'(,p:;s, ":0 ", ttl tl,p nntlll'p.
The EXI"'l'illwnt, to ",I,i .. h t hp 1'l'llIal'kR
rplatf', wa, (riP(i hy tl", .\ptlwrlnmis (rO\'pnlllwllt ix
tl,eir IHJSsp""inlis in thp East Illdi'lJl Ardlippla!2:0' Jw.ya
and thp 1,1,,1111,.: "UlToUlldill!; it. Jaya. it II1f1Y lw liotl'd,
becflllIP a 1>1It .. l, "onqllf'"t iii tlip l)(,t dnys of Dutch
ISDlAS POLITICAL El'OSO}(L
domination on the :-;1'11>', It wa, adltliniHtered by the
Dutch East India Company III own interest,.,
The ('ollll'any ha,1 the exe!usil'e right of the Tra,l ..
with Ja\'a, and it monopolized the production of f'pice>,
the Illo,t paying l'roduee of the Islaml. hy continuing
the 'lIl('it'llt l'ystt'1Il of Forced Lahom and Forct'ri
D"li\'emncE". ThE' Dutch Company It'ft the ::-Iatile
Chi"f, to rule tlte pE'ople, and eonfilled tllf-ir direct ad-
llIini"tratioll to the EuropE'an Bettl"r, in the Port, on
th" (,O<l:;t, In the French 'Var", tilt' I"lall(J,; were un(lE'r
Briti"h mallagf'lIlf'nt from 1811 to 1816. in whieh
lattt'!' year, th ... y were restored haek to tlw Dutch, on
the cOlleiw,ion of Peace. :-;ir :-;talllforc1 HafRes wa:,
Briti"h GOVE'\'llOl' durin 0' thosp YE'an'. l'Jl(lerthe adllli-
:-, ..
ni,tration of'thi" British C;'oIPl'Ilor. thl' Indian Ryot-
'/I'w'i Systenl of fixed cash rates on land, was introriucpcl.
tht' Xatin- :'I/agi,trncy waH elisl,lal'e(1. and European
Agt'ney in th .. Adlllilli,tration of' ('il'il and Criminal
.Ju"tict' 1I'1l,; l'llh"titlltt--d. and he declarE".! that land 11'<1,
f'rpply ,;aleahlp for ,lI-ill,; and arl'l'<Il' of Hf'l'enue. HE'
aholi,hpd Forl'P(] Ld'"nr. and of t'xport ami
productioll. aJl(1 tll1'(-\\' "pell thp trade of ti,e Islands to
all the world, Thp,t' lines of polie)' will he easily
rpcognized to h ... the lines of poliey which hal'e beE'1l
steadily follOl\'t-d in British India. ,,'I,en the Islands
were restoff-d back tei the Duteh, tlley. howel'E'r, 1'r('-
ferred to rel'ersp this policy. They decll1recl tile lands
to be unsaleahle for debts or arrears of GO\'ernmf'ut
I\IIIA .1"1i TIlL, II.Tnn: .5
Ht'n>1l III'. Til .. \, II hoi j';/I .. d t"" R.'IofU'(( ,,; :O;ptt'm of
HlI1II\ lit tixt'il (",,11 1'111.". IInrl rt'n'rtt',1 to til ..
"ncil'lIt :'iatiH' IIl<'tlIo<l of .Ioint Hp'l'0n.ihility.
Till' tll.k of dirpet (;-O\'''l'IIl1l1'lIt hy Il\pall': of an Euro-
\, .. all Agl'lH')" wa' gin'lI 111'. HlHI Ilip allthority of :'iati,'!'
\ hipf 0" Ht'gpnt, a' tht'y \\'Nt' (allt'd. \\'a,: IItili",!',1 for
thp of th .. :'iati"'IItII'lllatioll. 'I'll,,), aho-
li"hed Fn..t. '1'1'11(\1,. and "Ilh"titlltpd l>iffpn'lItinl Dlltip,
011 import, frolll I la I't,. '1'h .. OJr\ :-;pt!'11i of
Ip'yillg the Lan(1 Tax ill till' ,hai'l' of ntlf'-tifth of tl ...
I,rodlll'p alllt OII .. -fifth of till' lal 0'11' of fol'
:O-:tlltp l'"rl'0':ps. WIIS r .... tor .. ,!. II it I, till' 1Il0dificatioll that
tht' Lahour "hurt' WIIS .... dll,.d 10 oW'->""Pllth, or .n,,
dll,\" in The til'\; holl, in l'l't1<iIlC'(' 1I1II1 Lal,oll\'
ill r""liPd of (;'()\'{'l'1l1l1t'nt Lall" \\'1" I'lIid to tl", :'inti, t'
('hi .. f, ill Tt'l'I'itnri,'s gO' ..... I .. d hy Tr .. aty (hi,f, ",,,I to>
the Bllfelt GO,'l'rtlllll'nt ill T"nitori .. , a"'I"i)'O'" hy
lon'11l1'4. In n'''l'ect of thl',:l' 1r00 .. mmt'lIt L"IlI!.'. till'
wlto (,lIltinlt",1 thPl1i had ollly thp IlslIfl'llt-
!ua .. y illtl're,t, nn" ('olll,1 1101 H,II 01' " I iPlIlltp tI,Pi ....
of ,,>,pr. [n regard to I'ri':oll' lalld,. th .. I'pa>'''III, paid
the rt'nt. in k.ind alltllaholll'. to tIll' pri"att' ()\\III'I',
wlio ('oulf\lIot rai,,' tl,, 1'1'111 '" tix,'" hy La\\, all" Ill,
pril'llt!' ('\1'11"1' I'ai(\ to (;","prn"l .. "t o!H-tifth of ti,l'
npt income or n"n t. or t" rpp-, pill 1'1 "1" of onp 1"'1' ('('11 t.
Oil Yalnt". '1'1 ... Pri,"t .. Lnnd, \\,'''P liabl(, to
and could b .. frpply 1ll0ltgagp<\ or alienatt"d. 'fliP)
could not, how("'l'r, 1)(> until \l'E'rE' E'X-
7G
I" nl AN l'oLlTJ('A L
lian,:tpd, 111](1 pvpn thE'n, the Jwlgp fixl'.! thl' 1"1<'1',
anll the e1'pditor had to tab' it lit tllRt 1'icp, if 110
hid III ad 1', or tlip hid" ,\'pn' 10\\'1'r. Thp Pea,:nnt
I,ad ,tatll': hotll in thp 1I11Y1l11tagps anri
of thp Joint j{p,,on,:ihility of thp
\'illao'p If hI' rpelainwd new land. no tax \\'a, ll"iprl
.
for thp fi,'p )"pa1':'. Tlip Tllx of onp-fifth l'1'orll1('p
IVa" spttled with tlie Yillagp ('hief (('orrp'l'ourling to our
l'atl'l), and h .. rli,.trilmt .. rl thp l11mlpn. 'I'll" Lahol1l'-
,liare of thp rent. onp day',: work Ol1t of n wpek.
\\'1\': utilize(1 on thp }'nhlie Hoad, alld ('anal,:, allli
'ltlt,,1' Pnhlie \Yorh, Ilnrl Pri,'atp Landlnl'll" \I,:pri it fill'
tIl(' ('nlti\'lltioll of their own law!,;. Ea('1i Hon,:phnld('r
IVa" re'lnirpll to fnrni,h onp adnlt Imtlp mr Fon'l'd
L'lhonr. II'hatE','pr might Ilf'tllp Ill1l1dlf'r of IIIl'lIlhpr,:
in thp falltily, In con)',:1' of tilllp. it ('''Inl' to I""'':
that thp "illagl'r, I'llIplowd a ,'prtain nllll1hE'1'
<)1' hi1'prl IlfIll(is at tliE'il' oll'n pXl'n,:p on \\'ork,:,
Hnll rli,ehargpfl thi" hnrdpn of Fnr(,prl Lahonr, To a
large I'xtE'nt thE'I'e p1'inciplp,: ,:till rpglllatE' tltp i\filllini-
,:t1'Iltion of t1w Du!c'h Ea,:t Inrlip,;,
For thp Tprritnrip,;. j{p,:irlpnt,; are al'l'ointpd.
who lli"'harge Judicial, AIIlltinil'tratiI'P. ';1111 Finaneial
oIlItip,. duti ... hOll'ew'r. nre light. The judicial
work lightpn ... d inl'E':<ting Xatiye Chi ... f"
with lar}.!'" I'oll'er,; of ('ollciliation alld arhitration, The
l{p,jllpllt ,itting with two Xatil'p \lpIlJiwr,,",, (I ... ni-
1111nal Judgp. rn to Europeans,
1:oi1>1.1 .\\1> TilE (TL'ITHE 7i
tl.pl'P al'P ,pparat ..
Huh-I. "'W\N".
( 'Ollr!, of .11I"ticp pl' ... ;;idpd O\pr
TIlt' Hp,id"ld\ ,alar)" j" ;1.'1.2.)0
1\ ypar. Hlld lip PllrJI.' loy COIl"lIi,,.ioll a .,ill/ilar 1111101Illt.
A,,,i,tHnt Hp;.;idpllt .. rp, .. i, P 1:.3(1(1 I'"r Y"al". The He"i-
r!"IIt'S i,. ,,1"0 a EIl""""ll ()ftjlifll. II" 111,1"
eLar!!p of HI'gi"tratioll wOl"k. "lIoi i,. a 'l'n'a,.ury Offi(t'1"
IITHi Record KpPI"'L B",jd,", tl,, j{p,idpllts allli thpil"
A"i,tHlIt, alld ."'p'TPtHri,'.-. tl"'1"1' 111"1' Contl"ollprs of two
classp,; cllHr!!l'd witli ti,t' .1111.," of watchillg- thp conditioll
(If the J>PIISallt". alld of prOlll,otillg their weltill'e. Tl,p
('olllptrollpr I'xpni,,,,. 110 .I ndi,ial 1'0\\"1-1". bnt is t'x-
I,pdpli to lIet a,. Al'hitl'lItor 01" COll('iiiatol". lit' ha"
("harge of (;OH'l'IlIllPnt and i" paid a salary
III,i(h )'Jses fl'OllI 225 to 1.':\ 7.) Jl y .. ar. The
dl'nts with tlip ASi'istallt,. ali(I til" ('OIlII;tl'Olll'l''; of
t _p sewn! I I'rol'in!'p;.; II rp nudN t hp authority of
thp GO,"PrJlOI"-(;PIIPrlll ill ('ollll!'ii. Th" work of aetllnl
.!.!OI"PI"IIIIIPllt i ... IlDwe,"p/", carried oil hy :'\ati,"p (,hief ...
ElIro)lt'all (,ftjep", llIakp mggp"tion, 01' inspection He-
ports. hut I," ,.,- 110 power to issue onlpl's or .. nfol'l'e
PXPl'Uti01J. ["wi,,!' t I,,, H",.iclent tl,p!,p il' a :'\ative
H"gl'nt fol' t I,p I'ro, illl'''. alld then' Hr" District and
Yillnl-te ('],ipf, 111,,11''' tl ... Hegent. If II dilf .. renee of
opinion III Til !'.' h"t \\'1'''1' t I... /{f',idellt, and tIle He-
g'''lIts, \'(f"1'''IIIp i .. "1<,,1,, to tl." l'elltml Authority.
Thp Rpgpnt'" "aIM") mllgp" frolll 800 to 1.500 a
Y"!lr. and h" Iso ohti1in,. 1\ l'e1'l'''ntage 01'
SlOn. H" lJOld" a sort of II l'ourt, and i" not only
,8 \:'>\11,\:-; rOLlTICAL
ti,l' Ci"il Hlllpr, hut also the High Priest for his Pro-
lineI'. TIlt' Hf""f'nt pxercises both Cil'i\ and ('liminal
..,
l'0ll'en; P:\('f'l't as Europeans, And the Reo
-i' kilt:- alt'. at lea"t in tllPory. rlepllted hy (joyernmPllt
til tl,.. ('ourt of the Regent. The Hegents
""i"t,'d hy a Conneil of \'azirs. and hal'e thpir 011'11
:-"','rpt" rips and CIPI-k". The Hegpnts I'l'P,i,lt' Ol'Pl
tll" l',i1iee Foree. atHl hal'p III tlwir hatHI" tllP
"I 'I JllilltlllPnt HIl(1 control of tI,P suhordinate
I )j"hid a1l(l Yillagp (lffieials and Chi'f". TIl'8' snh-
"nlinal<' "fiicial" an' c>lllt'c] :'Ilantries in Villag,s. awl
\' ... \a 1I a.; in \)is\rids. aUI] l'Pceiyp sal:Hips fmrl ('Olll-
IIlb'lom. Thf'y f':\pn'isf' Hf'Yf'nlle And 1'oli('p func-tion,'.
Hnd ad '" ('nIH'ilia\"!',, all<l 110 "nit is entf'rtain('d till
,',I]H'iliatiOll rail>,. The (f,)\'prnor-('f'n'ral has a Conncil
of fom. awl 1l,Pl'(, i" a ('ourt of Jlldicahll'(, with
jmi"rlidiol1 Iller Enro]IPam: am] of rank in tllP
('oa"t T"wII>l.
It was to gil'P tI,pSp df'tRils of land
all'] (ioH'rnl\\'lIt in Jilya for 1\ COl'I'pct
flf til" eXl'erilllPlIt of tile t'llltnl'P
>lhont t" l)p d,,:<elihpd. It will he :,pen frolll thpm t1l1lt
tlIP Dntch (row!'nlllent Iiill'e "t('a<iily aell,erpd to tlit>
Illod,,1 of (ioH'rnml'lIt. an,l lilllited th(' foreign
to tllP work of in8p'('tion a 11< I wport. pxcppt in
J'E'ganl to t],,, Ilnteh or otl,pr in
th" ('on"t Town:,. The diffp},p))"P IwtwPPlI thp RritiRh
Indian Sy,tP1J1 and the Nptilt'rlanr]"" lI\Pthod of Rule j"
1!'illlA .I!'ill THE (TLTOllE iV
radical, thE' latter heing t'on,pl'I'lltivE' and Proteeti\'e.
whilE' thE' fOrBwr is on modern idE'llS of e<julllit)-
and i, worked out by a milch Illrger fOI'E'ig'n Ageney,
t han is fonnd necessary in thp Duteh I The
nne system is. therefore. Iwcessarily costly, and rt'quires
upon and II hiemrchy of oftieiak Not-
co,<tliness due to the larger eml'loy-
fIlellt of Europeans, therE' can be no dnubt that in its
... duC'ating influencE' the British Indian :-:;ystem com-
parE'S fa\'Ourahly with the Dutch IIwthod of Hull'.
Thllt mE'thod. howE'\'er, has its own ad\'antages. It
dol'S not dismember Xative I'-ioeiety to the same (>xtent,
"" is found to he thp eaRP in India.
Tn prncped with the lIal'ratin', the Xetherlnmis
in the the East Indips eo\'er lin area of
:10.000 square miles. ThE' population in 1885 II'IlS
p,timatE'd to he ahout thirty millions. The l{E'\'enues
in 182(1 wpre pightppn lIlillion Flnrins, or one and a
'jllIlrter erorp" nf Hnppp,. and they rose to thirty
III ill ions, or two ('rorps of Hupees, in 1833. III tile
ypars wltieh prpeeded the introductinn of the Culture
:;ptem, the pxpenfliture exC'eeded the re\,enuE' hy three
millinn Florins annually, for many YE'ars. in-
ml\'E'd state nf thp finane'" first to (iPllpral
Ynn d(' BaRch, (i-overnnr nf thE' .:'\eth erl II n(] " E!H't.
Jndips, the necessity of taking' nrgent measur('s for
<\E'\'eloping the r('snun'p,; of the Island, and tb(, plan
follow!'!} by him is known as tile ('lIlturp Syst('m. It
80
I:> DI.\:> POLITICAL
11":1, fir,t intro,Ill(, .. ,1 ahont tlip )" ... al' I tl:31-33, anrl
eontillllP,1 ill olll"mtioll r<lr mort' th"l1 thirty yem'"
Th ... of thp lIa,.; t h"t "II
Land, 1I0t r("'1uirp,1 for Hiep ",dti\'a(i<lll, II hie!. affonl"d
til tht' I'lti ti",t Ill'''; , \\' .. to \lp [,Jante([ with
nUl'" for whil'h thl're wa,.; a d.'lllil1ll1 ill Enrol'''' hy
mean,.; of a,halll'p, to h ... nl'HI ... hy tI,,,, :-.;tat ... to l'ri\'ute
('ontradon', wh'l n1lll ... rtook to I'lallt t I", l'Hrtil'ular
('rol''';, allll "pll the 1,rotlll('l' t<l t awl fixed
rate,.;, 'Ind li'l'lidat" tbp 'HII'<IIl('" 1111111 ... to tLplll hy
in,.;talllIPnt, ill a fixe(\ Illllllh.'i' of H'ar,. 'flIP,,'" ad-
\aI1CP'; wet'(' of ,"vera 1 kill,I" Tb .. tir,t ill ortlt'r, \l'n,
the H(halll'e for initial PX1WI)(liture 11I, ... ""ry to "tart
til(' eoncern, It llIight IJP a I'lantillC: ('lI1H'Pl'tl or a
:\Lmufacturing ,-,om'PI'll, The ('olltrad<ll' rp( ... ilt,(1 tId"
arhallee under tin ... rpg'ul"tion,.;, Itl tile fir,t I'la('(', tLe
a<hauee to allY l'"rtil' 11\;11' Contr"ct()I' \\'a" not to eXl'ep(1
t\\'O hundred thon,.;and,; of Florill'. or a\Jout 1-1.000,
Though no intpr""t wa, till tlli,.; ar\nlJl(,p, it
\l'a" repayahle ill year,.; II\' im,tnlllients of 011<'-
tenth frolll tilt' thinl (ar .. \\'"" tak"ll to see that
the Contractor \\,<1" lIot II IlW 1'1 , 'll[>('III"tor, and the
money WaS a<inlfl(pt\ to hill! BlItI.'r t Itntial '1lIJPrinteml-
enee, whkh Iw11'ed a ehoicl' of the sitp, as /ibo
in selecting and huying tl", machinery, alld fitting up
the mill, 01' making tIl<' \\'"h'r power ;tyailahle, In
regal'll to tliP lahol1l' for managing the conl'el'11,
(lOyernn1Pllt at first trall,felTPd to th" COlltrador the
1)il>L\ TilE (TLTU(E SYSTE)1. 81
or Foreed Laholll' due to it frolll th" l'ea-
The machinery allowed to hp imported
out)' fret', and timber and other ma.tNiab from
lIIent wen' without ehargp. The
Official him withtlaeir ad\'iee. The
certificate wa, ne('essHry to
(iorf'rnment that the mon!'y for ti,e
}lurpost''' for which it was horrowed. Xext to this
initial admnce, a )"t'lIrly advance for thp production or
IIIflllUfacture of mndp OTl condition of hping
rE'l'aid out of thE' l'l'odllct' misE'd. lit pdct's which were
fixE'd in a way to It'aV(' II margin of profit, both to
Government and to the Contrllctor. Thp seldom
t'xceeded four hundred aerp,. At first the whole of the
produce wa,; made oYer to (J-ol'ernment at onf-third
aho"e tht' ('ost prict'. Thi, plan was found not to work
well, and latpr on, the Government agreed to buy thp
. produce at ('ontract which were fixed, as to
I't'l'fly the yearly admnee, find one-tenth of the initial
or the huilding advanee. Generally, the rates wert' so
fixed that the delhery of two-tldrds of the manufae-
tured produce the yearly '!d\anee, llnd \t'ft one-
third as profit out of which the initial ad\'ance was
repaid. The area, adapted for partiC'ulal' crop" Wf'I'f'
ehosen by Government OllicerH, who left in each
Yillage sullicjent hnd for Ricp cultivation for the l'f'a-
w,mts, and rE'yuired the yilhgers to plant one-fifth of
their with the Contractor's "'hen one-fifth
R2 ESSAYS INDIA)';
arPfI thus set Rpart for the Contractor's ('rops, no
Laml-Tax was levied from that village. If, aftE.'r pay-
ing the yearly advance and one-tenth of thf' hllildin(
aflmncf', any surplus waH left, the Contractor Ilad to
share it with the villagers. In cour8e of time, exp .. ri-
ence "howed that the practicf' of rt'mitting the Land-
Tax worked unjustly, and it was accordingly giWll lip,
and in its plHce another plan was adopted hy wilieh the
full rent WRS collectf'd from thf' "ill age, and til"
were paid indi\'idnally ill eash for thE.' work
donE.'. Under this nell' arrangement, out of thf' C'asil
payments made for wagf'H, the villagers were enahled to
pay t1lf' Government demand without the of
hon-owing. In short. thE.' Java \'ultme ,Sy;;h'm may h"
described as a system of encouraging tht' 1'lHllting of
remunerative ('rops, and manufacturing them for the
European market, by privl\te agency and at prinlte risk,
with (i-O\'ernment advancE';; , and nnder GOH'rnmf'nt
supt'rYi;:ion, and with tile GOVE'rnmf'llt as thf' ,ole l'lb-
tamer. All the three parties who worked thE' Sy,;tem. the
Government, the Contractor, aUfI benefitpfl hy
it. The Government borrowed motH'Y, as it alone could
horrow, on Public Credit, and hought tllE" produce ,0
rai,,!'d by Contractor;; to whom the Illoney \v1l>, aclnlllC'f'd
at low rates of interest, and it rt'paid ib<!'lf, hoth
prin<:ipal and interest, by buying at mtt's which left a
large margin of l,rofit on sl'lle in Europp. The l'Oll-
tractor, aftpr hp paid off the advances ml'lcle to him,
:\ETHEHL,\:\I>,; l:'i()l.\ ,\:\() TilE CU.TI'HE SYSn:;lI. 83
hf'CalllE' the OWIlE'r of a I"rgf> find ftoUJ'i,hillrt l'oneenl,
.
while tilP '"illag;ers or Pea "ant labourpr,; rE'rei\'ed ll1ueh
l,igllPr wagp,; than theye\'er l'ould ohtaiu be/orf', or
"I HlI'I"(I in "lll'l'lns profit,;, The ('n!tnre :-;ptPIl1 was
worked to hE'st ad \'autagf' ill of First Class ('rops,
such as Sugarcane, Indig;o, TE'a, Toha('('o, and CochiJwal,
whit-h I'P(luired high l,lanting. and in lIIallufacturp.
There were, Ilo\ ... l'prtaill kinds of l'roduee sHeh as
Cinnamon, and },pl,er. of the :-;p('ond Class,
which did not re(juire plflnting or manufadurillg skill,
1'111' intpl'\'Plltioll of l'ontraeton; was, therefore, di;;-
l"'nsed with in their rllse, ami ad\'aneps were madp to
tllP t'1l1til'aton' dinct, and a, II ith our own Opium
('nitivation in }whar, prieps were fixed iJpfonhand
through thf' ()ftj('ial Agt'llcy in sneh a way as to leave a
margin of profit to the ('ultil'fltor, as ,,1"0 to the
(iowrnment. whit'li hart a rig'ht. to buy the .. ntire crop
at. fixed The cro!, w,!, tIle most
alld next to it was Tohar'C'o l:ultivatioll.
The vigilanl'p of the Oflil'illl Agency was Hecul' .. d by a
pereentagf' as l'ommi"sion )laid to them on HIP quantity
of produce rai"ed. The self-interest of the \'j]]agel's
was sharpened hy a 1'11\(" which din'I'ted that if the
('fOPS faIled, they shoul,\ Wt nothing. In 1854, while
two and a 111\1 millions of /teres 11'''1'1' und .. r Hice
cultivation, olle hundre(l tl"l11,imd Herf'S were planted
under the Culture Rystelll. The Lawl Hent paid to
Government 011 the"e one Illlnclr .. d thollsand ac)'!'s was
84
asse"sed at the Hict' ratt's. Tht' (i-olt'rIImellt lookt'd tl>
tile profits l't'alizt'd hy it. 011 "ale of tllP III
1l0IiaJl(l, as tlH'ir ollly rl'tlll"ll.
TlIe first l'olltmcts wen' 11I!Hlp for twell!y year-.
and at the end of that p,'rio,l II"prt' rt'nt'wt'cl for anotlll'r
tprlll. About thirty to forty t'rort's of Hupt'p" wert' ill
all mh'allct'd Ulldl"l' this "y=,telll, ami when till"
first advances wt'rl" rt'paid, tilt')' ",pre reinypstt'd 011
similar terllls. Umillg' tilp I""t twt'nty ypllrS, tilprp
haye bet'n no rl"newals. At prt'sl"llt In<il"lwlldent
Planters are enconragl"d to Sl"ttll" on lfOl'erulllt'llt lands,
out of which large plots of uncllltintted lands, lIIeIH'lJJ'-
ing three hundrpd to four huudred at'rp=" art' It'Hspd fOI'
twenty yt'ar,;. XO rent is ehargt'd for thp first fpw
years, and afteJ'lI'flrd" rent of Rupee" two to tilrt'p
ehargell as cultil'lltion extpnd". Tilt' Heporh; of LOl'ld
Authorities show that, uotwithstanding the eXI't'rien,'1'
obtained Ilude\' thp l'llltnrp Systt'llI. awl tht' obligatioJl
on UOI'E'rlllllt'ut to hny prod nee at fixed rates, t lIP
Inclt'l'pndent SYRtplII of planting' doE''' not pron-
profitahle as the old "ystplll of prott'dE'fl and sub,iciizPll
Planting anel :\[aullfactnrp. 'flIP tWtl main defeets of
tllp most rpcpnt arrangement" arE': "irstly, tbe high
rate of interest whil'h the Pl;llltl'l''' :mrl :\lanufal'lurer"
haw to pay; Illld ,.;pcondly. tl,e ah,ellC'P of Oflieild
gl\idance which II'II=' secured llIIIler the old System. A
:-:'l\garcaue Plantation, which co"t two Ill1udered tiloll-
of Florins llllciPl' the old :-:'ptPlll, was worth Ut'Hrly
three times as much at the end of thti artf"t
han:< advanced had been paid off. 1'm. In<i''lH'ndent
:"'y:<telll works well enough in regard to erol" whiM-dtl-
not re(luire high skill and care. But, in tllP ('ase of
:-Iugar lind 1'OhR(,CO, the re:<ults IlI'e decidedly in flt\'our
()f t Iw Cultnrp Rystem.
This brief dpscril'tion of tltP. Culture i-Iystem will
to conyey a gpneral idpa of the way in which
(Teneral ,"on de Bosch succeeded in del'eloping the
I'P,;()u)'ces of the Island. The experiment was under-
taken Inl'rl'ly for pnrpoRps, hut indirectly it
1IPI1'ed the XetllPl'lan(ls East Indies to attain a high
<Iegree of material prosperity. The deficits, which had,
Ill'pyiously to 1831, been ahnost ('ontinuous for many
years, were changed into surpluses of many millions
.)f Florins. The Land Reyenue, whit-h was eightet'n
million Florins in 1817, and thirty millions, or two
of Hllpees, in 1833, rose to one hundrpd and
thirty-six million Florins in 1860, that is, nearly nine
and 11 Iialf Crorl's of Rupelo'S. The advancl's rt'quirl'd
for the Culture were made out of sums bOITow-
f'd by tht' i-Itatt', and this Xational 1h,I1t was repaid
with intf'rt'st in forty Yl'ars out of th" large profits
which till' Rtate made hy sale of l'r()(luce in Hoi-
land, so that in 18il the Government of t.he Xpthf'r-
IRnd;; Ymlia hAd no National Dpht. 'flle of
Hp\'pllue hetwpen 1831 and 1871 HJllOnntpd t() tllP
lArge fignre of sevPIl hundred amI twenty-five million
86
Florins, or fifty-two ('1'0\'1''; vI' BII!'ep,;, All ofti('i!li rp-
port submitted to Lord lJufferin by '-on Den Herg, t1. ..
lTo\'ernor of .Jam ill 1885, admits that th .. I 'Ultllrt'
greatly eontrihlltecl to the de\'eioplllPnt of .Jay a in
growing'l'ropi('ai proliuee. In 18il there were ninety-
,p\'t'n :\lill-owners with whom (rO\'ernlllent had eontractf" I
for the production of Sugar. ninetY-HP\'en ('on-
traeiors plant.ed sen'llt)" thousanrl a('rps with SlIgareallf'.
and emv10yed two hundred ami twenty-fiw
of The Exports and I 1Il1'0rts in 1860 wert-'
nine million pounds Sterling worth of azui tin'
llIillion pounds Import", Since 18i 1, as oU8elTP(\ aho\\'.
the Java I rOwrnmpnt have discontinued the ('uitun-'
System of encouraging production, ami as a reBlilt (If
tltis change of arrangement, the proslwrity of the Island
has heen almost at a stam\"till, and during thp last, .. igllt
years, from 18i6 to 1884, there have heell d .. fieits of
nearly se\'enty-fin' million Florins. which haw had t"
he met out of the sllrl'ln,;ps of one hllmir .. d millio\l
Florins of the first fin' years-i8il to 18i6. TlIP
profits mad.. by the of GO\'ernnlPnt 'produee in
Holland, which unclpr the ('\lltnr .. Systpm fIlnged from
fifty to se\'enty millioll Florins, ancl wpre nparly equal to
tilt" Reypnup raisP(j in the Island by taxation. decline<j
from sixty milli()Ji Florin, in l8i I. to forty
ill I !:l8,!. and thirty IIlillion, in rn (,()II'P<lIlP])('P
of this re<lndiOlJ. lIP\\ 'l'ax(',; had to he impose(!. with
tI,e l'P,nlt thnt tl,P Rf'IPlll1P rni,pd b\' tnxntioll.
IxnIA Axn THE (TLTUlE SYSTDI. 8i
which wa, Illilliou Florins in 18i 1, waR one
hundl'PrI and onf' Illilliom in 1884, Hnd one hundred
and four ill 188.). This inereMp of taxation
not, howl,\"f'r, f'na hII'd the Government to a \'oid
dpticib. Fiuane'ially thprefore, Iwitl\PI' the
lIuteh (rol'prnment nor thf' peoplt' in Janl, have
fwnt'fited much hy t hp ('hange of System. There
kn'e bpen certain ",Lich Ila\'e
contrihuted to produce pffed, notahly the war
with the Achines, and tllP effort, lIlarh- by the
Holland Go\'prnmpnt to shift a portion of hpr own
hurden of Debt to the Depencleneie,. The planting
al1(i manufacturing Inclm;try encouragpd IInder the
Culture :-;YHtpm has abo sufferpd a collapse, [1m] i"
not now as pro'perous as it oncp used to be. Tlw
c:hange of Sy.tPIIl was ostellsihly introduced iu the
interest of the Xatil't' population, 1mt tilt' results do
not sbow that tilt' suhjects of the Netherlands Ho\'em-
lIIellt, hoth European and hal'e benefited
Illuch by the chang(', wages haye gone down in most
parts of thp Island, w],ile prices, hoth wholt'sale and
rf'tai], have not been kept II p.
We huye thus attempted to furni.,h ill olltli!lI' the
h-'ading Economic features of the condition of the
:"iptht'rlands East JndipH during the past ,ixty years,
and contrasted, as far a' published permit,
th.. proHl'prity of tlw fir,t forty when the
Culture Systf>m was in foree, with the comparatiye
88
ESi'AYS t)'i l'il>lA'i
(lecHne (luring tllP lnst twenty ypani when thp Imjp-
pendent Rptelll hepn marl' or Itdopt!'d in th!',,!'
Islands, This l'Olltrast is in itself, but it
be('ome,; 1I10rp "uggestive whpll WI' comparp
Xt'tlwrlands hvlia with Hriti,h India, and meai'nn'
their relative progress undpl" Forpigll Huh', '1'111'
Xethprlnnds India i,. stated flIJO\'e, ahout thirty
thoURand square in arefl, The lITea of Hriti"J,
India is thirty timp" Hlorp, heing npllrly nine IlIlndrell
thousand squflre miles. The poplllfltion of ::-Ietherlallds
India, howen'r, is two and three-quarter Crore" or
one-eighth of tbp population of British India. In
other words, the Xetherlflnds India is foUl' times mnfe
populous than Briti"h India. The Exports and Im-
ports of British India in 1885-86 were sixty-spYf'n ami
eighty-fino ('rores of Hllppes, respectively. The Ex-
}lorts aud Imports of India were in 188.1
and 188!). OIlP IlIlndrpd flml sixty lind one hundrp(l
and ninety million Florin", or nearly twelve and
fourtepn ('rorp" of Uupp!'", rt'spectively. Reeing that
India ha" a, poplllation pight times that of
Xethprlands Iudia, and an area tllirty timeR as large,
the Imports and togl'th"r of British India
ought to be at lea,t twpln' times as large as thosp of
Netherlands India. Hut th!' aetnal figureR show that
our EXJlorts find Import, were only ,ix time;; a, large
as tho,l' of India. East
Indies hM! no ::-Iational ])eht in 1871. In 18i6
:;ETIIEHL.\:;,,", I:;PIA ,\:\1' THE (TL'ITHE 8Yf:;TDI. 8t1
ti>(> Dutt-h (ToH'rtllllpnt tran,f!'IT!'d a portion of it"
Hom!' Deht. about thirty ('ron',. to the D(>l'('nd!'n-
ei., all(i it wa, th(> ouly dpht ,-,harged on Xetlll'r-
Ea,t Imiip, ill 1884. Thp British Indian Debt
l'l-'pr!'sPllb a !'harg-p whidl ex{:p(>c1s two hundr(>d ('ron's
()f Hupee:', Thp Dutch Government deril'ed R Rel'pnup
of nearly forty million FIorini', or of tln'e(' l'ror(>H
<)f Rup(>(>s in 1884 from Sal(>s of I'rodnee. wl.ich did
not ff'pr(>sent tRxation pro}>pr. 'I'll!' Indian UOI'PI1l-
IlIpnt has no such rPROIllTP ('xcept the Opium HpI'pnup,
aud H,dlway", which, 1,0\\'"I'pr, hping ('onstructE'd out
<)f horrowed c!lpital, do \lOt. )'pt, pay thpir eXl'E'nses
and the full interest ('harged Oil thp Loans. The
Opium RevPUlle in Hriti,h India. aftpr deducting
.>harges, reprpsents a profit of ,ix ('rorp, of Rupeps
only. The Dutch lTOIpTJ1HlPIit. on the other hand,
realisps on sail' of Government l,rodll(,(" l'offpe, Sugar,
('incllona, ptf'" forty million Florins by !In
expenditure of twpnty-fil'p III ill iani'. !lnd as regards
Opium, that Govprnment J.:IR a monopoly which yields
twenty-onp mill ion
half Crore of
c1uee thus yield titre"
or liI'''rly one and a
(ll'illill aliI! I jOl'erUJllent Pro-
t of HII] 'f''', ont of a tota 1
Hel'PIlUP of ten Crore" Like HlP Briti,l. ([olernment,
tbe Dutch :\'etherlanrlR GOI'ernment hnl'!' a :\[onol'oly of
hilt the Rp\,enue relllispri if' onl\, haifa Crore
ag-ain't, eight Crore;; realispd in Briti,h Illdia. In this
respect the Dutch GOl'prnmpnt rloPR not tax f-:alt, a
90
ESSAYS 0\ 1:\J)IAIi
npcps,;ary of lifp. to the extent as thp Briti"h
Government. Thp Land Hevenue. including Land
Rent, yield:; to the Xptliprlands (TOYf'rnment twetay-
two and a half millim] Florins, or one ero}"p and
sixty Lakhs of H lIppe,-. Tltf' Land Revenue in British
India is nparly twenty-two Crores. In other words,
while the population of British India is eight times
a, large as that of India, the Land
Revenue is tl,irteen tilll'" that of tlif' Netherlands
India. The Forced f'pni,'p,., which haw noll' heen
for the most part cOllllllutf'{1 into a Poll-Tax. yield
about twenty-five }.akJ" of I\11[>"P' to nle Dutcb GO\'ern-
ment. Even if this liOllJTP "I' HpYE"l1\W were inc-Iuded
in tlw Land-Tax amI L1IlId J{",,\. t I", land Re\'enue
in British India. still ,b,,\\', n high..,- l,preentagp, lwing
nearly one Ruppe lJt>r l,p;,,1. ",hill" ill ,\ptherlanr],. India
it is about three-fomt 1" 1,1' a Rul'P" PPl' heae1. Till'
:-;alt-Tax is in British India six Annas per hpad. while
in India it is three Annas lIpr hpa(1. Om
Custom,; RpY\nup. having been needlessly sacrificpd to
Lancashire intprp,t", scarcply yields one and a half
Crorps of Hupep". In the Netherlands India, thp Cus-
toms Re\'plHlt' pxcpp(l, ,;eventy Lakhs. Thp taxf'f' on
Trades amI Profpssions yieldpd in British India It l'rorp
and a. half of Rupees and in the India
the yif'ld was thirty Lakhs of Huppes. Our :"tallll"
Rf'"pnne yieldf'd more than fonr Crores of HUl'pe,. 0,.
tlirep Anna< I"'), hpad of thp population. Tn thp
:'iETHEI<LAXJlS I:"DIA AXIJ HIE cn:rnn: "YHUI. !ll
Dutch East Indies, the :-;tamps ReyelllH' \nl, only
eight Lakhs, and eyen adding Legal'), and Tnlll"fer
Uuty, the f:itamp H('\elllw wa" tliirtt'en Lakh,. or Ie"
than olle Anna per head. The FQrei't He\elllw repr('-
s('nts a charge of one .\1llIa I",r liead ill Hriti._11 India,
while it was 1(,,8 than Italf an Anna ill the Untelt
East Indies. It will be seen from tlti" tlint the pres-
sure of the Land-Tnx. f.:tallll"', nnd Forests, ii'
lIIuch heayier in Hriti,,1t India than ill the Xethel'land"
India, whih,t the ('ustolltS. Duties. and the Trade or
Ineollle-Tax were 11111<11 Itiglter in Duteh East Indies
than in British IndiA. The net charge in
Hriti"h India ranges from four to fin' Crone" of Rupee,
or tltrpe to four AnlJRs per hearl. III the Netherlands
India this eharge is nllllost nominal. In tli(' Dutch
East Indies, one-third of expenditure is llIet without
taxation. In British India Olw-tentlt of the expen-
diture is so Iwo\ided for. Out of a total EXl'ort of one
hundred ami fifty-four million Florins, the Netherlands
India exported to tltf' extent of oTle llUndred ami
twenty-five million Florins' worth of lIIanufadured pro-
duce. The chief articles (-'''ported were wortlt
seventy-two million Florins, 'I'oba('('o sixteen nnd a
qunrter millions. Till four lIIillions, Tea two millions,
Oils three anri a ljlulrter millio])s, Indigo fom
and Coffee twenty millio]),. III British India, out of a
total Export of ninety-nine ('ro)"('s, lIHinufadnred A.gri-
cultural I'roriuC'f' was \alned at about tWt-nty l'rores of
O:'i 1:'i1'1.\:'i
HII\"'e,,. TIIP urtklp, pXI'0rtpd wt'1'1' CottOIl lI1allll-
fa<'tlll't' worth ,;ix lind O1lp-third Tpa fin' ami"
'p11lrtpr Indig'" filIII' . .lilt .. thrpt' III1fIIl half, and
t ',,/fpp two ('roI'P". WI' PXI)('l't"d Iittlp or 110 or
t IiI". In othpl' words. "hilt tl,, I'r"I'0l'tion of' Haw to
"allnfadnl'pr! l'ro<iI1<'p pXl'"rt"d fl'oll1 Hriti"h India
wa, fonr to onp, thp 1'1")I'''rtioll ill :\pthl'r1"l)(ls Im\ia
wa." ,JIll' to fOIlI.
Thp"p ""Iltm,,!'; "('h""!'ll til .. E,'oll<llllie "Ollditioll of
till' two ('ollntrip" will hI' "lItlieiPllt to "Oll\'PY a g,.,lIpral
idpa of thp way in whi,I, t\i .. ,11'"pl')I"""11t of the
n"Ol1n'P" of t"" two t 'ol1ntri ... , It", h"'''11 "al'l'i",\ out
11udl'l' tl,P iUtl'IPll"" "f tw" di/f"j'('ut 'VI'
11I1\'p d"""lol'"d Oldy tI,, fil .. lllt\ to I'rodll"1' Haw goods
to "'ml thl'1I1 t" hp 11.,.1 II If'a<'l III''''' ill "tl,pr ('ollut.ri .. s.
amI to hring t"1'1I1 h:I"" ,,:,:aiu 1'.,1' 0111' 11'1', III
lanrl" Imlia ,/fort" han' 1""'11 Illao\" lI"t 0111\' to "row
. '"
111"]'1' l'ilW \,l'Odl]('" "I' a Ilig'll "I'd 1'1'. hilt to 11 '''11 11fa d 111'''
it, '1Il,1 this I'PslIlt i, ,Ii", tn II,, \I,,, .. kill:': "f till' ('l1ltlll'l'
:O;y,tPIII d," .... il,,d. .\11 thi .. ,1",11:':'1' I"", h""11
\\Tol1"ht withollt ,1",,'"'' tn (""\"'1'11111<'111 alld to tIll'
'"
p\'illpllt ht'nptit of .hp I'pol'l,. at all "xIH'llditlll'" wl,i..!,.
at tl,P highp,t, did llot ''x,""," II,irlr 1" fOl't.\ (.1'" .... , "I'
BlI\,t'P". Thp Briti,,11 (fO\'Pl'lIll1pIII ill Illdia "I'Pllt ill
Hnilwlly" IIIHI 'lIl1nl, f"nl' tn tin' tilll"" "' 11111<'11, hnt '0
far from h .. ll'illg til .. I '0\111 t 1')' tn I,. 111"1'1' ,,,,If-<1''I'''lI<lpllt
ill to it" "1111 \I fll ,t II 1'<" 1l11l11"IIII1WfI.. it h .. , olily
',,' 1,,1 tn llwna .... 11111' df'],PTldl"lI'f' 011 tht :-:ilq . .;"It
XETHEI(LA:"I>,,; 1:"1l1.\ A:\I.IIIE lTl.lTIlE !!3
re,ourc .. of Agri"ultul"P t<J a 11111,,1, larg-"I' P,IPlll II'ill'
EXl'ludillg ("lIlal". II", E'IWllditl1l'l' of
nearly two itlllH!n,d ('rorp.; Iii" uldy II,ad .. "Ollll,,'titiC)1I
With Europe Illel,." ltopf'It',,, "\"1 "n'"". ,,11<1
facilitated t1l ... l'''I1I''''),,,n,',' "fVtlI'Pi,gll (j, .... b. Iu ill I
extent not otilPl"lI'i,p lH,,,ihl,... Th" (iOll'I'lIlIl"I,1 of
(Iluin. when il ;)(I,,\,",d tI... 1',,1 i l'\' "I' (,))]",1 \'l\('1
Proulldil'e \\'01'1" out of Horn)\\ pt! ('''pita!. did in fad
affirm tllP I'rineil'le titnt. ill tl", 1'<'(,lllinrl, itnC'kll;tJ'lI
condit ion of Hit' ('OIL n t l",Y, lllP ",' \ ,,10\,11'<'11 tor it, n'''' II 1'-
could not hI' l ... ft to illtlpl"",.;put prim!" Plltpl"pri" ....
and that a,'" l"el'l'eselllilig tl,, l'llitlil', il \Ii"
bound to utili.!' Pllltli., r""'III'l'Pi' of l'n'rlit awl
superior intelligence and iw tion, for t 1,1" '" hill,hlgP
hy 1"tit"grpaIH,,iillilYillld
Canall'onstructor, in till' ('olllllr\', Tltp I'rilll'il,l" of
the Cultlll'e WiI,' I Ii Il'. Ineit 1,\ nftilJf",d iIIllr,' I1IHIl
twenty years Ilgo. Tlw ditlt-renl',' 1I11h in tlIP o\ljpd"
for whiC'h tili" State \,'r ... dit Il'a, 1l", .. t1 al,d \,I ... dgpd, ThE"
"llccess of RailwlIY Poli,','-' tl,ll" IIl1dprtukpn twpllty
y!'ars a,go in Lord l\layo', tilllp, \IH' 11"1'11 'lll(Aillllt'd
in "ome quarter>,. Fo)' ))111' (.\1'11 ],"1't III' ill"P l')'t'l'arpd
to admit tlillt tJIIlllgh Ii lit l'lIrrllllPI]''''lll'atp
with tllP ,'xl,pctatioll' f""l1pd at til"!. llil" I .... Pll ('on-
siderahlp, and taken \Iit" tl", 1'"lilil,,,1 ilIllll\hli-
tary advantAgE"' of Hail"iI.' ('''Il,trudioll, tl, ... \'( ('all hE'
1\0 doubt that the bOITO\\ed 11l"1i!'"} I,a, 1)\,,,11 \1'(11 lai,1
out. 'I'h .. l'oliey whit''' 1'<"l'il'(" till" :-;tatp to I>p it,
oWIl Hailway Construdor, thoug-I, forlllally Ilded u\,on
tWt'nt.y years WRS rpally firHt initiat .. d wllt'n Lord
Dnlllousie's (io\-ernment sanetionprl tile -of
(iuanmtee(l The :-:.tat .. (,redit WIIS pl ..
uwler tlmt plllll as .. ffedi\-.. Iy as ulIdf'r tllP mTange-
lllPJlts adopted in liliO. In to ('lInals tlit'
,;ame observation Ilolrl" good. If tlie State aSSUIl'ps to
itsplf the functions of Laudlord and Sovereign. its
<Iuties naturally assullle a wirlpr sCO\'P, and no r1pfpnce
is. therpfore, nt'cessary for tl,p position thus takt'n up.
The :-;tatp, as rpprt'st'llting the Puhlil', liaS a right. and
is lIllcl .. r correspondillg- obligation. to IIlldertakp all
functions whieh it ean ht'st perfoffil to publie advan-
tag-I'. The principle underlying the Railwny Policy of
Kritish India and thp Culture :-:'ysiem introduced
ill ;.\pt!,prlands India by Yon cle Boseh is thus one and
identical. The difference lies only in the choiee made
<)f the ohjects of that Policy. The comparative figures
given above sho\\' clearly that in the of the
the objects kept ill view by General Yon
{I(' Ho:;C'h w('n- of more paramount interest than those
followed by tile Bl itish (To\-ernmput in India. Facili-
tip,; of communication are certainly desirable advan-
tage" hilt mor ... desirable ,t ill is the capacity to grow
higher kimb (f produce, and nevel0l' manufacturing
ann industJ i,,] a<'livities. The sole on
Agricultnre loa,; heeu the weak point of nil Asiatic
('i\ilizatioll. Contad with superior race_, ought cer-
:,\E'fIlEHI..\:,\IIS 1.'"1.1 A:,\)) THE (TL'ITHE 95
tainly to remedy this 1II"II'II"ssnl""", and not to aggral'llte
it, as has been to /I larg'e extent the in tllis
Country. As the l'e"u\t of the tII'o at work in
the two our I'roportioll of Hau' Producp to
)[lInufacturel Procluee exported is four to one. while
it is one to four with our The ('omtruc-
tion of Hllilways ('all ne\'er he l'omp"red, in tl,eir
edueating influenee. to the setting' u}ll of :\Iills or
or ". ater Powpr Machinery for the production of
:'\lauufacturPlI Proouee in 1111 parts of the Country. A
Railway runs from one end of the Country to the otht'r,
and leaveR no I,ermanent impression upon the fllce of
till' ('onntry. lit lea"t none so dumble and }>f'nf'trating
3R that which surrounds a great Manufactory. Now
that the work of intercommunil'ation has been well
nigh coml'lf'ted. it spems to u, that the time hilS ('om I'
when Government should turn a new leaf, and yenture
upon a depllrture from its present H'('eil'ed pol icy, on
the model of the Culture System with suitable adapta-
tions to Indian wants.
It cannot well bl" said that tIll:' 1'01il'Y thus recolll-
mpnde:i is foreign to the gpnius of British
Rule in lndh. In regarcl tn Ci Il(' hona, Tea, and
Coffee, the Government of I ndia at great eXI,en"e,
pioneered the way for t,he introdlletion of these foreign
products among the agril'lI\tllral re"onrces of the
Countr)'. The,.;e pioneering wpre made entirely
at State expense. What is now Ruggested is that
96
ESSAY"; OX IXIlIAX
similar efforts in otltf'r dirf'ctioll> than Agrieultural
Dt'I'plopment "hould Iw lluHle, not at i'tatt' t'xl't'n>p.
departmentally. but on tilt' plan followpd in thp. eft>t' of
lw <Tuarant,-(-inrt or suh,i(lisin'" Ill'inltp effort> .
.1 J
till prinlte enterprise coulfl ,ul'pOl't itself. or lwttl'r
still, by the plan f()lIowed iu Xt'ther\ands Illllia ad-
vancing to l'ri\'atl' Capit,tii"ts at low and
helping them in the ('hoicl' of places ami the sdl'ction
of tilt' form of The British (iol'ernment in
India l'l'cognizes the principII' of advancp> for
iml'roYl'llIent., to agriculturist." known a" Tag(tiafh'8nee;;,
hut thi" powt'r j" niggardly I'Xt'l'I iSl'd that it may
virtually hI' "aid tn Im\'e hien ignorptl in pradice.
Tho"e who cOllllsel non-inteiferl'nce in snch matter,;
on the authority of writ('-rs of Political Economy forget
that Political' Economy, as a hypothetieal {/, p)''Wn
Science. is onp tiling, wllilt' Practieal l'olitieal Economy
as applied to til" particular con,litioll> "I' backward
Countrit'> i" a (Iiffpn-Ilt thing ultogt'ther. American,
Australian, nIH! l'ontinentltl Politieal as
applit'<l in l'rac-tic-p, penn'it, !lPl>arture:; from the
n preto)'; j>""itioll' of tht' abstraet Scil'llt,,,, 'If authority
were want",} fill' titi, a:;"prtion, "'p ('olill refer to Mill's
Politi"al Et'OlJ()Il'Y, Thp qnotation 1" I'peulial'l,\'
approl)l'iatt' '" it bY" down the dllti"" of GOI'ernment
in l\)llllhi .. , likl' Im!ia,
" A good (fO\'erl1lllt'nt will giw ,,11 it> aid in H(eh a
shape a:; to elH'Ol1l'ag'e lInri nnrtlll'p any l'Il(liJllE'llt:;. it
);ETHEI{LA);"" 1:-'-lliA A"" TilE CULTCi{E tlY"TDI. 9i
lllay find, of a spirit of indiddual exertion. It will he
in remodng obstaeles and discouragements
to \"oluntary enterprise, lind in giving whatever facili-
til'; and whate\"er direction lind guidance may be
n('(essary. It" pecuniary mean", will be applied when
praeticahl.. in ai.] of pli\'ate efforts rather than in
'lIp ... of them, and it will call into play its
Illachinery of rewards alld honour" to elicit such
pjf<)rt, ...
"(Jo\"(-'rnment aid, when gnen mefP]Y in default
of primte PJlterl'he, should he given as to he, as
fa r a" o""ihle, a eourse of ed lIcation to people."
Go\ernment must undE'rtake to do "the things,
whit'h are made incumhent upon it hy thE' llE'lples,-
ne' Olf the l'ublie, in snch a manner as ",hall tend
not to ilJerea.;p lind l'erl'etuatp, but correct this
"e Iplessn
These l'rin<-ipl., justify a dpparture III the direc-
tions suggested abo\"e. The Hailway Policy jJUrsued
hy Government has, II' II matter of fact, exeept in
a few Presidency Towns, killel out Local indigenous
Industries, and mad(' people more helpless than before,
hy iUt'reasing ttH'ir dependence ami pressure on Agri-
('ulture as their only resource. The Policy adopted by
the Dutch Government sixty year;; ago, has produced
the opposite effects, and made Java export foUl' times
less Raw Produce and four time;; more of Manufac-
tured Produce, than has been the case in British
98
ESSAYS OX IXIlIAX ECOXOllIICS.
India. )1r. recommends pecuniary assistanee in
aid of pril'llte p.nterprise, and the Government rf'cog-
nizeR this duty in its Trlgai advancf's. Ro far, t1wrl'-
fore, as authority is concerned, there is no heresy in the
recommendation of a departure of Policy in tile direc-
tion suggested hy the experience of J a \'a. 'We are
aware that objection will be taken to the proposals
made above on the ground that, finding Capital for
Industries and )lanufacture,; is a function which dot's
not bt'long to Governmt'nt. This is no doubt theoreti-
cally true, but at the smne time, it does not lie in the
mouths of those who advocate a \'igorous Railway
Policy to urge this objection, for, if the principle he
accppted, it follows that GOH'rnment has no bnsiness to
find Capital for Railways or Canals. 01' for Pioneering
Tea or Coffee Enterprises. Those who urge this objection
forget that the great wan t of India is Cheap Capital
ready for inve,;tment in larg'p Elltprprises. The Saving"
of tll!' Indian population are but seanty. A large pro-
portion of tlie,e foiaving:i is tah'll up by Taxittion, a
still larger proportion is hoardptl or buried under one
form or another, and there i" hilt a fraction less than
four or fi\'e Crore, of Hupees. all O\'er the Country, left
for indmtrial i1l\'estment on a largp scale. A large por-
tion of tllt'se . fin' l'rores is in the hands of men ill
Presidpncy Towm. who ha\e little rt'lations with tIl!'
Country at large. 'I'll!' hahit of farming Joint-Stock
Organiziltions is not developt'd, anrl the are
NETHEHLA:'inS ]]';I)IA AXD THE CULTURE "YfTEM. 99
inn'sted in Gowrnment Stuek ur in Post Office Ranks
and bear no productive efficaey. .Just as the Land in
India thin;ts for water, so the Industry of the Country
parched up for want of Capital. The evil is not of
to-day, but is an old inheritan('e. Capital dpRirolls of
investment and content with Inw intereRt i, a Xational
\vlmt, and this wllnt cannot Iw ;lcle'luately Hlll'l'lipd hy
any partial or 10cIll private ejf<,rt,.;. These la,.;t lin' good
a,.; far as tllPy go, hut after nil t lip), are n drop ill the
oepan. The want being XatiollaJ. the Xation Ita,.; a
rig:ht to expect their Hulers to "llpply the wan t. more
e,peeially as these Hillers all' not Afghans or T1ll'k,.;,
hut men belonging to a race the most gifted aud the
heHt endowed with material pOHsesRions, and lending
their surplus "reaIth to all the ('ountries of tllP \I'orld,
Hnd capahle of applying that Wealth in tlH' most pro-
ductive chanm'k In the case of Ja\'II, the Contmciors
to whom G'overnment admnced loans were all Dutch
.\dYentureu, hut when these settlers went and settled
in Foreign Lands, and invested their money and talent
in loeal inrlustries, the evils of Foreign Absenteeism
were not felt to he so great as in the case of the
Hailway In borrowing a lesson from the
Dntch Method of conducting these the
British Governmpnt here nppd not confine thE-ir loans
to British Capitalists only. Native enterprise, where
the spcnrity was satisfactory, might well alloweo to
S hare in the new undertaking". This would remove
100
ESSAYS 0:'>' IXDlA"
one of t ht' adrnittt'd e\'il, of tllP I>utt-It plall of aetioll.
The loan, nt't'd not he adnmetc'd frep of intpfl':<t. 1" Wll'
the in .h,va. The :'Iation will not tolt'ralp
any action on the part of the C;onc'rIlIllPllt liPI'P. to
have a )Ionol'oly of of et'rtain l'ro<1lld". Tlip Ea,(
India COlllpany had snch l'ri\'ileges, hut tllPy pro\'"d 11
Hource of and the had to j,p
abolished in favour of ]<'p.p Traclt'. Thf!8P 1'0rtiOll' of
the Dutch will, tliel't'foI'P. Jut\'P to hp
dropped, but tllPY rio not i(lI'\1l p"t'ntinl part, of tlip
t'eheIl1t'. The System of F()I'l'"d La hour \la" ,,\'('n III
Java, given up, and in its plaep efl"h 1'a:\'IlIPllt..; WPI'tc'
suhstitntt'd. The wages of lahoUl' in lllclia flrp '" low
that there is no ad\'antagE' in. or OC'l'a"lUll for. thi,
aosistance of forced lahour. Thp8t' a""idplIt" of t lip
Culture Sygtem thus t'JilllilHltpd, wltat I'PIlUlill" h,1'
Goyernment to do is to enl'ourage :'Iatiw, and Enropc""1
entt'rprise in Rtarting :'If'W Indll,trit', Hflnllll'P".
limitt'c1, as in Jnya, to maximum allloullt". and Iliadp
repayable at Im\' illterest in a eprtaiu nUJIlIlPl' of )'t'al''',
The disIJlln'l""t'llt of tIt esc' i\(hances m tllP 111O"t
profitable II'''} sh()uld Iw to the slIJ,PrIn-
tendenep (If Oftiei" I Expfc'rt". \I'!Jo should hell' and
guide l'rililll' t'it()J't,;, ancl wHtC'h thp intei'est> of
Govel'nnlt'llt hy l'rt'\'fc'nting' ahusE'.
In the "i,oicp uf Industries, (Jon'rIlment Illay well
prefer those ill tilt' prosperity of which it I,I" a large
stake>, anel in l'e"I,eet of which India 1'0,;:;",;,P5 "llt'cial
;\"ETIIEI:J.A:I"D;; l:I"llIA A:I"J) THE C('LT(;HE 101
As tIle Iron and Coal Indus-
tries may be safely takpn up for first hial. In rpgard
to the Iron Industry, :Ur. (YCoIln@f oh"prvps in his last
report that' :\'0 practical dpvelopllwnt of the Iron
Industry has a, yet bepn made in Jndia. The Barak-
pore works, where an industry of tl,,' lilA magnitude
might he ere!tted by the eXl'Pliditnre of Capital and
skill, are still limited to th(' l'rorluc.:tion of Cast Iron in
trifling (jlJantitips, although the State and Pnhlic
require an import dose on a quarter of a lllillion of
tons of Iron anel Stepl without inclmling
quantities imported as ",lachinery, }Iill work, and
Ha.ilway }Iateri'l!.' In regard to Coal, Government
haR for a long tiTlle worked the .'vIines on its
own account. In place of this costly departmental
work, it may he suggested that primt.e entprl'l'isp dnly
sllhsidised, or guaranteed, or helppd with loans. should
11P substituter!. Himilarly, in regard to agl'ir'lIltural
l')"I)(inC'", Hugar is olle of the Industries \\'Ilieh llPP(]S
hE'll'. Pri\'llt(-' "fforts to E'stablisb Hdilwl'i.s fail. on
aC'C'ount of the rlifficllltips placed hy tllE' Ahkari
IJpl,artment, in ntilising- tilE' or non-"ac'dlfirille
matter, for pl1rl'os"s ()f Hum ())' Li'lllor. (IIII' ('
onI
1'(-'-
tition in thi, lutieip i, not with EII,l.:'lalHl. hilt with
('hina, ",[auritill', a"d the St.raits H"ttlpIIlPIl!R. \Vith
the Government "s"i"tancE' ill JlIOJl".\'. awi freedom from
Ahkari diffieulttp,;, ["d ia wOllld 1'l'od ll('P it,; own
f'imilady, in ()i1" om c01ll1",titi()11 ellif't1y with
102
ES;';AYS O:\' I!'1DJ A:\, Eco;.;mncs.
Cpylon, and thp Straits W p
export of all sorb; to th.. pxtent of eight
Croff's, and impolt Cocoanut Oil from the }[auritius
and from Cpylon, Ground Xut (.il fr())11 Java, awl
Linsped Oil from England. In the .. of B .. er, t1H're
has been a considerable del'e)opment of T ndian Brt'w-
eries, lmt the importations ar.. still many tilllPs tilt'
quautities produced in India. "roollen manufacturing,
Industries and tlH' Tanning of Hidt's and f;kiw; aIHI
the }Ianufacture of Paper amI (Hass also afford large'
scope for the springing 1Ii' of IIt'W t'nterl'rist'.
"'e mic:'ltt mllItil'h' the list, if it were nt'ct'ssnry
to go into d .. tails. hnt it is unnecessary to do so, for
tht' strn,ggle, at prp:.;pnt. i:.; to "t'cure the rpcognition of
tht' l'riTll'iple advol'<lt,'(l. All that I contt'nd for I,;
that on tllp prilll'il'lp f .. Il,)werl hy GO\'el'lIlllent of
borrowing two to thrp(' ('['tIre,; each yt'ar for so-called
produdin I{ailway", it "holll,l borrow orcliYert this
amount fllr tllf' em'olml'!PIII .. llt of Kew Indllstrips III
tht' Country by m"'lll, of admnces, or suh"iclit's, or
guarantees according ,." ('ir('ulll,tan('es I'eljuirt'.
Even if the GOI'erlllnent. he not prepared tn tnkt'
this risk on ib own "holllden; from f ... n of EnC:'lif'h
criticism and jP,t101l:';y, a way Illig-Itt 1)<> found. giYing-
t'ffect to arrangements on a small ,calt' hy
t'mpowering the .. xisting LOl'al or :\Iunil'ipnl Ronrds.
or creating Spt'eial Corporate Boards of Trade amI Com-
mere .. , to torrol\' from the Go\ernmt'nt at low intpref't
NETIlERLAXD" IXllIA AriD THE ('l'L'lT]{E SYiOTE)I, 103
the moneys requirt'(1. an(l achance them as loans for
Ule improvelllE'nt of Hnra] and Urban IndustriE's,
The Savings (lqlositpd with
presE'nt wholly unpro<!udiIP.
(Ton'rnmpnt, arp at
ThE' DE'positon; are paid
31* pE'r cent. by tl'Pil' mOllPp in UOI'ern-
ment Stock at 4" I}('I' cellt. TI,is IWIlt,fit" nobody.
If instt'arl of tilt' present Hl'l'angPlllellt, tilp Dish-iet and
thp City Dpposits werp lent hy (rll\'ernmpnt to :\Iuni-
eipal and Local Boan],; or Dj,trid ('ol'\}()]'atp Banks,
and these Bodies. Plllpowerpd to IlIak" arl\'<lllcPs, say at
fh-e or six ppr cent. to pri\'atp [>PI"OI]'; Il'it It skill and
pnergy to turn them to account, an aJlllUlllly incrpasing
Fund of four to til'p ('rores will h" at thp disposal of
the (i-o\,prnIllPnt, for pnrpo,ps lIlor.. calenlated to
bem,fit Pl'prybody than t lip [>I'Pt'ent I,lan", Each
Di"tl'ict lllight thnfi hal'e ;1 Fund tn (\PI'P]O]> its resour-
CPS in its own way, and "PI'pml Dj,(ricb mi.C!'ht ('ombine
togethE'1' to sllpport a strong unri"rtaking for ('ommon
admntag'e. If the powers of the"p Boanb were thus
pn]argpc]. thpH' would be no risk of 10:;8 to G'ol'ernmpnt,
amI th" Boards might makp consi(jprahle profit hy the
me of the mOllP),. and thus ]'PliPI"P tIl<' Inn'den of
LOC'R I Taxation, ( )f ('oursp, thp CTOverIllllPllt through
it, Ofli,'er, woulrj hn I"P a potent I"()i,'p in tIlP proper
(\i,hul'sPlllPnt of thesp horrowed IllOll"P, and with
jllc\ieious supenisiol1 thp who]p facp of the Country
might be ('hanged in the ('omse of a f .. w yt'ar" Tht'
.. Since reduced to :3t per cent. a,I1(1 per cent.
104
ESSA YS ON I:'<DIAN ECoNOMICS.
GoYernmE'nt might hE'lp efforts hy giving its
own custom to thE'sE' manufacturing coneerns in re"l'''ct
of the reLJ lIired for it> ""hen the
Country \Va,: thus enabled to obtain a new "tart.
and Fact-mil', and :\Iills on a "mall or large ,:ealt ..
were set up all over thp IImd, the present l'araly"is
would gi\-e way to a play of pnprgies which wOllld
far more effectively than :-O;ellOol" and Collegps gin>
a new hirth to tile aetiYitips of the This
thE'n is our plan. The alternative suggested ahovp
may do as an experiment, but it would he far hettef if
the Government recognized this function of de,-elol'ing
New Industries in the Country, to he as Ipgitimatp a
part of its duty as it now regards Hailway Con:;trnc-
tion to be_ The principle underlying hoth fnndions
is the same. The one bas heen tried and has attained
its success, but has not eured the particu Illr weaklwss
which has crippled the growth of the Xation_ The
experimental trial of the other prineiple in a :!II pigh-
boming Country has to all llppeamnceR supplied this
defect, and this experience warrants a similar trial in
this Country.
r-
" '-
--""- .
IV.
PRESENT STATE OF INDIAN
MANUFACTURES & OUTLOOK OF
THE SAME.*
................. , ...
(i\H. \\'A1'1'8, Hq)()l'tpr on E('onornie l'rodnd" to
1) the Government of India, I iii';, in hi, rpt'Plltly
]lllhli,;he!1 on tIle Hh'DUl'CPB of Briti"h
India, devoted an Plltirp chal,tpr to thp
uf thp "Present State of Iudiall :\lallufadurei' all!!
()ntlook of the Same" for the future whieh is pnlinPllt-
Iy and deRen'es rno,t carefnl eOIl,ideration
hy the MemberR of an AR,ociation, >'11eh a, tlwt U11fler
wllO.'t' auspice, we meet Iwn' to-day. 'Th .. political
domination of one COllntry hy another nttracb, far
llIore attention tllHll tIlt' mon' f01'lllid"hl!". tbongh
unfelt domination which tht' ("'l,it:ll. Ent<'l"l'J'i"e, alld
Skill of onp Country exerei,p 1)\'('1' tllp Trade and
.\Ianufacturp,; of another. Tlli,; InttP!' dOJIlinntion has
an insidioll'; inflllPnce which l'aralyzps the 'l'riug,; of nll
thp varied aetivitif's which tog-ptl'Pr Illnke Ill' tht' lift'
vf a Nation!lInd thi, infiupnee WlIS so paramoullt at one
time in British lmlill, that tllpl'!' wpre gra \'t' rt'asons
to fear tht' worst conseqnt'nl'Ps of this inel'itable
* Read at the Jnd",ttial Confel'enee, Poona, in ll'n:l.
lOG
ESSAYS 0:>1 [:\,[liA:-;
change. In the Eig!ttt'pnth ('plltmy, England. likp
the othpl' t'ml11tl'it's of Enrol'P, (]t',in'd to 1I:1I"e ('ololli .. ,
of its OWIl rapp in all part,.; III' the 'Wurl,l, ebit'fly flJr
tht' COli II II ,nil] of tlw 1I\i\1'keb, tllll' opellPd up to t\:"
HOIllE' alld Tmd"r" The l'olonips \\'f'rp
looker] ul'0n a", HIl'] ill f"d \l'erp ndnally l'nllpd.
Plantations, wll"r .. raIl' l'l'Ildll('" \I'iI," ,c:'I' '\I'll to Iw
to thp C'onntry. til I ... 1I1i1llld;l<'tnrpd Hllri
exportpcl aC::1in hnek til tllP ('"I""i(,, :111,] (,) tilP r .. ,t of
the \Y,,)'ld. 'fbi" Pili icy ,uc:c:: .. "tp,ll'e,tril'(il'p nlea"\ll't"
of adioll intplld"t! to I'",j,')' d"lll,,ti .. Trild .. an(l Arb; at
tl){' 'a('riticp of th" ht,t illt,),"'" "I' tIll' ('olliniPR. Tlw
AlIlI'ri"all \,":11' of I nd"l'PIllI,,"l'" jllll all ('n(] to thi"
Rcllt'lllt' 1)1' EconOlllic (TO\(,1'I1Illl-'llt. and ,inl'P tlwn,
tl1011'(11 thp '1,I1I'1'P of En,(li,h ""Ionization lin" het-II
multijl]"',] tlli" ('E'ntmy h.'yoml all prpl'iou,
record. 1'1'1 tit .. " .. nPI\' (',)Ionip" h'l"p f!'Olll tiLp first I](->E'll
allow .. ,l 111 lI"rk nut tllt'ir own rlp,tillie". frE'P from thE'
lE'ac1in!.; ,i rill!.!' of' dOIIlI'"tie eOlltr,,1. ThE' gn>at Indinn
"I' h"", during tlii, t 'pntury,
comp h. ';11],])ly tllP p]HCP "f thp Old Colonip,;. Thi"
Dp]lpndpll('Y ]"" "OJlIp to ]11' n'!.;Hl'flpc] 11" a Plantation,
raw I'rodll(,P in lw ,hil'l'",rI hy Hriti,,11 Agt'nb;
iu Briti,,], :-;llil'''' to 11<> workp(1 into Fahric" hy Hriti"h
skill and ('apital, and to IlP 1'p-pxl'0rterl to the Dpl'E'n-
dE'ncy h\' British llIprehants to their l'OlTPSpollciing
Briti,h Finlls in Inllia anrl t'ls\>whe1'P. ThE'dewlol'-
mE'nt of "team powpr and TllPclmnicnl skill, joined with
STATE OF 107
incrpa;;pd facilitips of ('ollllllllnicatiolJ, ),aYp lpllt
to this tpnden('Y of the tiUH's. alld, as one
of the changt', tlH' gradual rIll'Hlization of great
Dependency, and t hI' rapid decadence of ati H'
Manufacture and Tradp, bemllip distinctly Illnl'ked.
Even now thp danger is not 0\1'1". It is. ho\\'p\'pl'. a
most fortunate circumstanee that. dm'ing the la;;t
twenty years, then' has heen a clearly distingnishn hI e
departure from the till then nnilllpede(\ pro"<,,,,, of
rnralizing a \'ast Continent long known for it, c:n'"t
resourtes and aptitudes. TIl<' rationflle of' tI,, ,'xi,t-
-enct' awl working of SHeh a hocly as thp Indll"tri'll
Association of "'pstI'm. India i" tlult it "'ph;" tu
encourilge this tt'ndency, amI dlPck rnstieatillll, It i"
no doubt, a strng,gle of a \'ery UlH'(luai clI11radt'r. !l
struggle betwpen a Giant and a Dwarf, and nt tllP'
struggle Ims to be maintairlP(1 ag'aillSt great otltl" ; and
those who Itre engaged in the strnggh l'''llllilt do
better than note from tiIlIP to time, w)wtj,pr the
direction of the movement i" l'orrect, and it- \p)ncity
8fltisfactory. I propose ill thi" papPI' to tng<'th<'r
cprtain chiefly on Official PllhlieatiolH'.
which will, I hope, yon that, on the whojp, wt'
have reasons to ('ongratulatt' ourst'l"e,; upon the
that the tendency toward" rllstication hll8 bet'll
l'!lecked, all(1 India untler Hriti"h Rule has been
gathering up its forces, and marshalling them ill order
to ward off the e"il effects of thl' first surrenrler that
108
it I,m] to make by way of to British skill,
('al'ita) allr] f'lltf'rl'rise.
Dr. \YaU, has in his :\[eltloran:!um notieed one side
ofthi, ('Ulwtf>r-movement, whieh has hecome dearly
\'isi111" (lmillg the last tWPlIt\ H""":'. A carefnl
of tJ,E' Tr"d" Upturns "f Briti,,), India for. 18!)2-93
{]i,dO:<h; tit(, faet that.. out of;] t .. tal Ilf Oll<' huudred
aml sixty fonr ('rores' worth of Exports a1111 Imports,
a1](] (J-oI'ernmpnt 'l'mlHadions, we
i Ifljlortf'fl nearly sixteen Crores of Haw Prod m'p
llearly thirty-"ix Crores l'rol]nce while
WI' exported eighty-fhe Crol'''s of Hall' I'rorltH'(' against'
"ixteen Crores, worth of :\Ianuf.tctlll'I'.! Artie)",;, In ft
word, ollr Exports to l '011lltri,''; ,),owed that
<'ight.y-fi. I'P I )f'\' cpnt. of them "",,rl' rPl're';Pll teo( I hy the
hnlky agricnltmal produce, \\'1.i('h gal'e no Pllll'lo\'ment
to 10('al skill an(] capital, e'(('ept slH,h as WfiS represent-
I'd by the rude metho;ls of A!!!'i('lIlLlIl'e, wlliIe ill the
1 mports we did not know how to '"1'l'ly om wants in
regard to seventy-two per (:l'nt. of tl,p we
c"i,'ed from foreign Countries. These proportions of
"e,'enty-two per cent. Import, allci eighty-fi'"e per
<,pnt. EXl'OrtR art' "uffi.eiently PXI)('t', .. ,in> of tIle present
<'ondition of things. In 1892, we exported twenty and
a half Croreii of Cotton and J nt" Fihl'e, another twenty
aud a half Crores of Grain. eleven anrl a half Crores of
ten Crores of Opium and Tohacco, about nine
('rorp,;' worth of Tell. ('offee, nnd Indiao nearl}' three
'"' ,
j'HESEYf \IF [,,()[A\ 109
('ron's of Hides alld :';kins, Hon". ptf',. tlirpp-f,mrtlif' or
a ('ron- of Dy-t' l:i>tLlft', alld Spit'Ps, Hhont two-tLinb of
a ('rorp of Haw Silk, hlo-thirds ofa erorp of Tillil,,'r, a
'luHltpr of a Crore of ::\IalJure, tl,rpp-fOllrtl .. -; of" ('mr>
or 1.n('. and one-third of a Cron, of ('"t.-elm or ('Ilkh.
These artic!ps make Ill' in
,Ill pj",)'ty ('mrp,';, '1'1,,-
:""'l .'
principlt) raw matt-rial, which India i,njlort.-d in 1:11':":"
quantitips in the smllt' .war, wprp tllP ::\lpta],;. -11">1,
and Stpel of ahout tlirt'p ami a half (\ort", ('OJ'I'''l' til"
('rores, anll tlip rt',t ahout R l'ro)'f-.--Ollt' ali.[ tLr,"'-
eig-hth Crores' worth of Coal.
fourth" of n Crlllt'. OllP-tllird
Marhle aJl() l'rel'iol1" Jpwpllery.
otlipr :\[ill .. r"I.,II,n,--
of n l'rore Ill'
The H'st of t L.. ilw
ported artielps wprp nil more or It'ss UIP /,1'0<111('1., .. 1
skill IInll ,'ul'itd engaged in manufadurPH. inelll<iill:,:
from t"'t'lItJ-!he to thirty-one Crores of Rnppe,;' worth
of Cotton (looel", thrf'P Crores of Silk and ''''00111'1'
A)Jtllll"f-1, two and a Imlf Crore" of Sugar, Ollt' and a
half ('rorp, of ,rin!'" SIX and two-thirds l'rores of
Machinery and manufacturerl ;\If'ta1s, three C1'Orf'H of
Dye,;, twn ('WI"'" worth of Oil, "uri about a erarp of
Tea, l'oftp!', and SIIIHlrie" Thi,. "tate of things was
the g-l'Owth of tllP last hatf Century. In 1853 Cotton
and Yarn imported to Indi"
thall Lakll" of Hnlee", alld in
were worth less
forty years they
,welled to 11,p f'IlOIIDOllH amonnt of twenty-the Crores.
Silk alld W ooll .. l1 (foods imported in 1853 were worth
only fin' Laklll" and they rose to two and one-third
110
ESSAYS 0:'\ 1:'\IlIA:,\ ECO:'l'O:l'IlCS.
('ron's in forty )"Iars. raw Jnte anrl (Train
f'x}lorten from India WPI'f' ahout four Lakhs each in
value in 1853, ann Wpl"e worth fhe Crores
and six ('rores in 1892.
Ahout twenty-two years ago. I had occa>,ioll to notice
this collllpse of domesUc Illrlustries, lind tile gradual
rmtication of our chit'f o('('upations, in a serit's of
]'peturt's which have IWf'n pnhli"ht'rl, amI it \\''''' ahout
this time that a wel('ome (llIlllgP took 1'1,,('(>. whose
.. fft'cts are now perceptihly \'i,ihlp. Thin!.!, In'rt' as
had as could hr ahout 18iO-i.); silll'p t1Wll till' tidf'
has turned, and Inelia has "holl'n "lgll" of a revival
whieh marks its first step in thp transition from a
purely ngricllltmal into It partly lllllnllfactnring ann
trading Conntry. VI'. Watt" has in ilis
elf'arly hronght ont into prorninPIH'p till' rhit'f fplltmt's
tlf this changf'. Of ('omsf'. no ,'hllngf' has takt'n place
in the fthsolnte disproportion Iwhl'ppn tlw Exports and
Imports of raw and mann/iu'hll'prl I'I'0rlll(,f', hut tlwir
I'plative proportions ha\'f' changpfl in ft WilY which
marks the Iwginlling of this IIPW rif'pftrturp frolll tilt'
olrl traditions. Thf' l'llipf fr>,limp" of this l'hllllgf' may
Iw thus Firstly, onr Exports of lIlannfac-
hIred or pllrtly mannfachtrprl goods hayf' risen from five
anrl II '1nartf'r Crorps to sixtpt'n and a half Crort's in the
PH,t fonrtf'f'n Yf'ars, lRi9-1893. the being
two 11111J(Irpd IlIlfl plpl'pn lJpr (,f'nt. in fnnrtppn yparR.
Thpre a "tPHriy IlI111na1 illcrplIIPllt of fiftppn }If'r ('pnt.
PHESEXT STATE 0(; I:-;IlIAX MAXCFACTU{ES. III
wit It Oil Iy two excf>ption:i I j'f>ars,
durinn' tllll! whole

!'t'rio(!. I"f'('ondly,our Exports of raw l'rodtlC'P 1111\'1' also
rj"f'n absolutdy, but the rf'latil'e rise i, IIIPa,urpd hy the
diff"rence between sixty l'rorps and pi,c:ltty-fiIP and a
IHllf Crores, which meam an increasp of forty-two per
('!'IIt. in fOllrteen or an annUIII im'\'('ment of three
per eent.per yea!', all annual of fifteen
pel' ('ent. in the export of manufitetured produce.
Thirdly, the iucreasp of manufactured artideR imported
into India, only been thirty per Cf>nt. in fourteen
year;;, rising from twenty l'!'Ores to thirty-six Crores,
w!tieh gives an annllal increment of two pf>r ('ent. per
Fourthly, the increase in tbe illll,,)rt,. of raw
I'J'Oduce ItIlH been about a hnndred l,e\' n'II!.. n,mg
from thirteen Ilnd tn !\\f'nty-six
and 1\ half Cro)'f'S' worth in fourtt'pn year,., TI,i" gives
an IIveragl' incrpmpnt ofsix and a half per CI'Ilt. The
following Table sets forth tlte sPI'eral point, I\oticed
aho\'e in a "ery clear manner.

18!J2,
-------------'
Mnnllfa(turcd
Imports
Haw Import"
llfu(;tul'ed
Export"
R .. w Export"
HM.
R., 13,7
RM. [,,27,.'lC ),.14f I
Rs.
36,22,;) I ,1<27

16,42,47';'66
-I:t I
Pt>l'C'cntngc
in(TPnNeu.
Totll.l. j AIlJlual.
;j\J
2'8
6'5
211
IJ
'n
3
------
-----
ll2
It will he "'P!l fWIIl tlli.- Tahl" tl",t whilt> tbe
ah"olute rliRprol'ortion ,;till continuE''' to hp H'l'Y IllarkPd,
tlwrt> j" a n'ry hpalthy ,I,allgl' i.ll their rE'liltiyl' pro-
portion,;. Fifthly, "llil" tilt' Imporb of IIIHIlllfadurerl
artiele,; w(-'re ,;ixty-fil'(-' 1"'1' ,ent. of til" total IlIIports
in 1879, Uli" proportion 1,,1., falJt'n to fiftY-:'''I'''1l pPr
C'l"nt. in 1892; "ilililalh. while the l'rol'orti(m of
manufactnred Export- \\;1, ollly pight I'er (pnt. of thp
total Export:; ill 18iU. tllP)" wprp 111 1892 1I1'arly
sixteen llPr cent. 'rhi, ,II;'lIg'> I:"; a ,;t(-'ady tendency
which till> rd llrns of lIlost of tllP ypars
in elude I within tllP I"'ri'l\\ nott',1 "ho\p. Sixtltly, th'
abo\'e cOllclusion" aI''' h"",d 011 tl,, ()ffiei" I Tradp
I{pturn,:. ])r. \\'atti', 1"'\1 ,\pr. 'Ill(,;tioll'; the principII'
of the offieial l'ia,;sifieati"ll \I!ticll rt>I,'''at"" "l1eil

as Spirit", Flour, Sugar. ()ik e!t., to tilP IlPad of Haw
Produce; wllile (,oir. Oil-cit!; ... ,.. Hidl's and
Skins, Lac, are ,IIOWIl '" lll,nlllfadnrt-"I, Tile growth
ofthe Industriei' ('oll<'enle,1 in thl> l'rodudion of Indigo.
Tt'a, Coffe!" , i'ngar. Bpl'r. Toh;"'I'O, ete
marh the first "tpl' ill tIlt' progn',;" of Intlil\ from
a l'ul'l"Iy a,grir'ultural into a partly manufaeturing
Country, wl,ieh i" ljuitE' a" imporbmt /is tllt' actual
multiplieation of .IntI', Cotton, i-iilk, Woollen, l'al'E'r,
Flour, anll Oil-:\li1k and Lt'ather and i'ugar ,,'al'tories.
By redas:<ifying the details of the Official Hd urns OIl
thi" mort' t'OlTect ha"is. it i, "bown that 0111' :\/;mnfac-
tur"d Export,; heal' to ollr Haw Exports till-' proportion
I'ltESEXT STATE OF I:'IDlA\, )IANUFACTCHES. 113
of thirty to st'H'nty. in"tf'nrl of "ixtt'f'n to t'ighty-four
l'pr ct'n t .
Tilt' naturally al'i"e:',-ho\l' has tliis changt'
for thp hf'ttpr hpf'1l brought ahont r It Ita:; hpf'n brought
ahout and surely by thf' E'ifort" of tlip Indian
people, n""i,,[,'d to a lnrgp p:dpnt by the influx of
Briti"h e:ll'ital alHI entpl'l'rise. A few ilIm;tnltiolls will
he,t explain tl,P \\'orkilJg llf this doublp AgP11C'Y.
Taking Cotton Goods in the first instancE', it will he
noted that the Iml'orts of Cotton Goods and Yarn
Wf're \'alnpd at ninE'tE'pn ?nd a hfllf Crol'E':; in 1875,
and though tit,,)' rose as high as tbirty-one Crores
ill one or two Yf'ars, they haY" heen almost steady
during tbe last fiftt'Pll y,'ars flt a fignrt' which aye rages
twenty-lil'p CIt)rp,.:. Exports in the meanwhile have
risen from le"s than two Crore", to llParly tf'n ('rOIl'S,
during thE' "arne period of elghtef'1I Yf':u'". TIl<' export
of Raw Cotton stood at five ami a half ero!'es, in 1860,
rose to tbirty-fhe Cror", in 186j-1866, and has
fallen to ahout ,ixtE'en in 1868, fourtE'E'n Crores
in 1878, ,eH'n and a half in 1882, and was thirtpf'n
Crores in 1892. These chang"" in til!' EXl)orts and
Imports of raw and manufactured CottOll han' heen
eontemporaneou,.: with the deYf'\l)l!lllent of ti,P Cotton
Mil],; in I nilia, w hie It have ri SE'n from fiftY-E'ight
Mills with 12,983 LoolTls and 14,36.-*64 SpindlE'S in
ISi8, to 130 J1ills with 26,347 Looms and 33,78,903
Spindles, giving employment to one hundred and fifty
114 ESSAYS ON IXDIAN ECOl'iOMICS.
thousand The capital sunk in theRe "1ills was
less tban two Crores in 1875, and is now estimated
to he TI{'arly ten erore-. This vast Industry has all
grown within the la,t forty years, and the Bombay
Presidency bIkes the lion's share of thE' hE'nefits secured
thereby, inasmuch as 110 Ie,s than 88 :\lills are in this
Presidency, besi(les 380 Presses, and II still large
number of Ginning Factories.
The place which the Cotton industry occupiE's
in this Presidency, is ta.ken 111' in Bengal by the
Jute industry, There are twenty-se\en JutE' )lilI" and
twenty-three Presses, and many primte c1mcerns,
with a capital of six and a half Crores, with 9,000
Looms and 1,80,172 Spindles, giving employmE'nt
to over seventy-seven thousamI men. The Exports
were over ten Crores of Bags, and the home consump-
tion is equal to the foreign demand. The export
of raw Jute still amounts to fifty-two Lakhs of
hundredweights.
There are eighty-one Silk filaturE' concerns m
Bengal, which give pml'loYlIIent to 8,000 hands
permanently, and an equal nnm\wl' temponuily, and
produce five Lakh" of ponnd, of i-lilk. There are two
Mills, one in Calcutta, and another in Bombay, which
supply chiefly the Burmese markets. There are other
factories which produce Ta8ar, and Chora for the
local market. The Silk "lill in Calcutta exported
lii:deen Lakhs of Rupees' wOlth of f'ilk goods to
PHESENf STATE OF INDIAN 115
EnglanJ anl France. The exports of raw Silk were
worth sixty Lakh,; of
There are th'e Woollpn with 532 Loollls and
17,21 0 and they g.jYf' employment to over
three thousan,l The capital employed is thirty
and the annual ont-turn of goods is worth
twenty-one L"lkhs of Rupees, chiefly for the supply of
local and departmental wants. The "T oollen and Silk
l'ieee-goods imported were of the valne of nearly
three Crore,; of which shows what scope tbere
is still left for further expansion. The exports of
('a"hmere Shawl", which at one time were nearly thirty
Lakhs of Rnpees in \"alnt' in 1868, dwindled down to
two and a quarter Lakhs in 1890-91.
There are ten Paper with a capital of
nearly twenty-fil-e Lakhs of Rnpees. The out-turn
had quadrnpled in tt'n yt'ars, and was twenty-six
'lillion pounds in 1892. There is considerable scope
for extension here also, since the value of imported
Paper of all kinds avt'rages a bout fifty Lakhs of
Bupees.
There are forty-:.;even Tanneries, thirty-thret' out
of which are in the :.:Hadras Presidellty, nine in Sind,
two in Calcutta, two in Cawnporp, anI! one in Agra.
The Export trade in tannpd Hides has inC'rl"ased from
three Crores to five and a half Crores in t'ighteen years.
In tanned Leather manufactures, the:;e Indian Tan-
neries cornppte with the imJlorts from Europe.
116
ox IXDlA:S ECO:smIlCS.
There are in India twenty-three all
started 18:iO. The capital ellll'loj' .. d is Re"enteE'n
Lakhs, the out-turn is fifty of (Tallons. out of whieh
nE'arly tWE'nty-sE'ven Laldls WE're 1'I\I'chased hy Gon'rn-
. mE'nt for the USE' of Roldien. Tlte remaining twenty-
two Lakbs are consumed by tltl' ci"iI population. Till
within the lw;t three or foUl' then> was practic>a lly
no import of beer for the use of the Arlll)'. Latterly.
since 1891, this monopoly haH been dei'troyed, amI
imported Beer is again coming in large quantiti .. s.
Altogether one Crore'" worth of "'ines and :-\pirits is
imported into Indie!, nnd ahout half a ('rore',; worth of
Beer and Cider was illll,orted in 1892.
There are, beside" two Soap Fadorie" and ten
Rope Factories at work in this COllntry, chiefly "lIpply-
ing local and departmental wants.
There are fOllrteen Sugar Factories ancl Rl'fin .. riE'ii,
five in }[adras, seven in Bengal, and two in the Xortt.
'Vest Provinces. TlIl' Cnl'ital of two of thl' morE'
important Factoriei', t I lat of l'asipore near Calcutta,
and the Rosa Factory in i"hnhjahanpnr. is twenty-six
Lakhs of Rupees. TIlt' llllports of Sugar Al'I'. howE'''l'r,
seven times as large as the Exports. TIl!' compf'tition
of Beet Sugar has chE'ckf'o the local production for
export markets, as also for hOIlOf' consnmption. The
wants of lOCAl consumption al'l' chiefly satisfied by thE'
use of thE' Jaggery. The vAlue of imllorted refined
Sugar was two and two-third of Croress in 1892, and
STATE OF MANUFACTURES. 117
its quantity two ;\Iillion Tons. Raw Jaggery exported
was worth forty-fh'e Lakhs.
Xext in order come the Flour Mills, of which we
hal'e forty-six at work in India, nineteen being in the
Bombay Presidency. The capital employed by five of
these, which are Joint f'tock is Lakhs
of Rupees, and the total capital of all the ::\Iills might
come up to thirty Lakhs. There are, besides, several
Tobacco Curing FaetorieR, Bone-crushing Factories,
Iron and Brass Foundries, Oi I Mills, Saltpetre
Refineries, I-)aw Potteries :md other Companies.
In the words of Sir Edward Buck, tlw)' all indicate
that" India is entering upon an important period of
manufacturing activity. Already a com-
mencement has been made in Cotton and Jute (Toods,
followed by of "'001, Paper, Lpather,
Sugar, Oil and Tobacco."
Side by sidp with this expansion of Indian manufac-
turing Industries, wp to note thp grpat devplop-
ment of the Tpa, Coffee, Indigo, and Cinchona
Plantations. Tit .. ('lll,ital sunk in these industrips is
chiefly European, and the management is also in
European hands. The total area under Tea cultiyation
in 1892-93 was 3,34,825 acres, out of which half the
area is cultivated by Private and one Lakh of
acres belongs to Companies started in England, while
half a Lakh of acre, belongs to started in
Calcutta. The total eXllorts were one hundred and
118
E>iSAYS 0:> I:> ])IA:>
twenty mill ion of ponnds ill weight worth si x ('ron>;; of
Rupee, in all.
The total capital employed hy the rl'gi:-tered Tea
Coml'anif-' in tlH'se com'erns ex('ee(\ eight Crore".
TI1I' Capital of' the Pri\'flte Tea Concerns may hI'
asmllwd to 1)(' <I,' 11 I ll('h. Tbi" Industry gives f-Illl'loy-
mpnt to ten LaLli,. of ppoplp, The land o['('u),ipd was
wl,iC\, yielded notliing before E\1I'opean
entNprise tll],])P'] it to acconnt.
The Indigo ('olll'f-rns at work in Indio in 1892 were
represented by 2,702 Fadorie:; find 6,032 Yats, which
ga\'e emploympnt to three and a half Lakh, of people,
solely in thp production of t IH' Illanufactured artil'le of
commercp, The Agrieultmi:;b who produce the Ra\\'
material arp not included ill this number. The a\'erag'p
exports arp fiftepn :\IiIlion pounds, valued at nparly
fifty Lakhs of Rupees.
Coffep Plantations co\,pr 1,27,648 acrp, in British
Indill, besides bl'gp arpa, in Mysore, Cochin, and
Tra\'ancol'e. TIll' total area un del' the Coffee (TOP
may safely bl' put ,1"wll at two lakhs of acres. Thp
total eXI'OI't of Coff"" i, lIparly threp lakhs of hundrE'd-
weight>. Thpre arp tliirty-sel'en Coffpp Worb in thp
Madras Prpsidpncy, which gi\'e E'mploylllE'1lt to 1,379
permanpnt and 5,433 telllporary llancl;;. There are lJP-
sid!'!; nllllwrOllS Lnc Fnctories, lIlallY Xati\'E', and a few
under European management, gi"ing employment to
2,6l4 permanpnt hands,and 1,600 tE'lliporal'y labourers.
STATE OF :\!ANTFACTl'RES. 119
The Catechu or Cute!! Tmc!e also considerable. TIle
value of the exports in 1892 was nearly forty Lakhs.
to t!Jt'se Plantations find :\IiIl Inclustries, an
important de'-l'lol'ment of the resources has taken
pla('1' in thp Mineral wealth of Inrlia, and notably
in the of Indian ('m!. The "nIne of the Import
of Foreign Coal wns as high as two Crores of Ruppes in
1888, hnt has fall,>n to onp and a quarter ('rorl's in
1892_ The Import" han> not i'xpanc\ed with the
innea,e in dl'mand. aml tllis is ('ntirely due to the
of Indian Collinip,,_ TIl(> Bpngal Colli pries
alonl' haw '!uacll'ul']pd thf'ir output, chiE'fly as Exports
hy sea to othl'!' Proyincps, in fi,-e years, the Exports
haying risen from fom Lakh" of Tons in 1888 to
twenty Lakhs in 1892. In 1892 tlwl'e were eighty-two
Colliprips at work in Inrlia, of which seventy-three
\\'I'rl' in Bengal, one in tIl(> Punjah, three in Assam,
onl' in Central India, one in Deccan, Hyderabad, and
one in Beluchistan. Thp ontpnt has donblf'd itself in
it'n years, aIHI was two Million Tons in 1892, morp
than onf> Million Tons bf>ing made up by till' Bpngal
Collieries alonp. Out of tbese two Million Tom'. onl'
Million Tons were used hy the Railway Companies.
Enrma also has large Coal deposits which arl' being
hrought into Ilse. Bomhay, Madras, and the North-
VI' estern Provincf>s have no Coal
Gold Mines have been rp-opened by the Ilt'lp of
British capital and enterprise in Mysore, and Wynaad
120
ESSAYS OX IXlliAX ECOXmIlCS.
and thl' out-tum in 1892 nparly worth nine
Lakhs. Thl' awrngp of thp irn)lortR of Gol'l in five
years was more than fOllr ('rorl's )11'1' year,
nearly twicp the in 18i2. and thrice tI,l' figurl's
in 1852, which WI'Tf' Tl'sl'pdi\,ply tll'O and n half and
onf' and onp-third ('rorl's. (Jill' hundred and fifty
Crores' worth of Gold ha,; 1)(>1'11 i!lIportf'{i into India
sincl' 1835 for honrrling
TIll' SIlCCt'SS which has attpndNI the flow of Engli>'h
capital in respect of ('oal ,jnps 1111>' not rewarrled thp
marie to riel'plop thp I roll resourcl's of India.
Not that India is wanting in this natural sourCf' of
'Yealth, bllt it is not to work tilesf' resourel"
in the face of Ell 1'01'I'fln competition. Tht' great
diffi(,lllty in thl' WflY is to fiml Iron dl'l'osits nt'ar
enollgh to Coal )1illPS wldeh ('all produce ell pal , and
good fuel. The HaragOl' Iron ('ompany in Ht'nga\ i,.
however, progressing satisfactorily. The imports of
Iron, and Iron-ware, ine\m\ing Hailway matl'rial" aJl(1
:Mill macilinl'ry, in ti,e ml'an\l'hi\l'. hal'l' rernainE'f\
stationary at the Iligh figllre of ninp or tpn Crorp>"
during the past five years.
Thl' amount of salt prorill(,prl ill India was over nine
Lakhs of tons in 1892, amI the Imports Wprf' three
and It half Lakhs of Tons. Thl' total duty lpvied \l'a;;
eight and a half Crores. i"altpetrl' was an Indian
monopoly in former times. Owing to the diseol"t'ries
of a substitute by artificial processes, the (\Plllalld fOr
PHE8!'::>,], STATE OF INDIA:; :\IA:-iUFACTUHES. 121
Indilln SaltpetrE' hll>' fllllen off. and Saltpetre worth
only five Lakhs \I'll" exportf'd in 1892.
India imported from to tII"enty Lllkhs of
Pearls during- the la"t five years, while its OWlJ Pearl
Fi,heries yielded hut a poor retnrn. Since the
conquest of Burma, Huhy, Jade, Allllwr, Sllpphire and
other Precious Stonf''' have ])f'come a new sonrce of
wealth, hut as yf't thf'se rf'SOHj"ce" no great
de\"elopment.
I llave thns passed in j"(\iew all the principal
:\Ianufacturing-, Planting, and Milwral Industries which
hll Vf' sprung up in India rI uri II g" t he last forty yellrs,
Rnd which have II \,pry li('althy development
dnrillg- the last t\l'f'nty years_ Thf'y l'f'}lresent an
in\estment of nearly fifty ('rare:; of Hupees, and afford
new and varied elll[>loyment to nearly tWf'nty-five
Lakbs of people all the year ronnd. This is an hum-
blE.' lJf'ginning, but it i" a wry hopeful one, anrl its
efff'cts are plainly \'isiblf' ill t hf' altered rE.'lations
which have COlTlP to subsist bf'bnc'en Indian Exports
and Imports of Haw and Manufadured Goods.
It might 0l'pt'ar to "'orne Hmt it is not wry to
1'E.'ly upon Stati"tie, of Trade or Industry of a gf'lleral
character, nne! to llase eonelusiol1s thf'l'f'on which
might or might not hold good of particular l,arts of
the Country, in the wdfare of wliieh Wf' Illay he more
intimately interested. It IS with tl,is yiew that
I desirf' you to turn to some Local Statistics of this
122
BS>'AYS ON I:'f[)IA!" ECO:\,O:\IICi".
P
'I 1 t th t of '1'111"']1 WI' nppr]
re,lf pncy, ;l )on , e eOITPc np" L
han' no and whieh a];'o point in tllP
samp direction n, those I hal'e nlrearly examined. In
anotl)!'r place I hal'p noted the proportion of Rural
and erhan populations in this Presidpllcy, a,; thE'y nrp
disclosed by tllP two Census ellumerations of ] 872 nnd
18!)}. TlIP Cellsns of 1872 disdosPfl 0111' H nnrlrprl
ane! sel'ent:>'-nille Towns with il 1'0]>1l\ati()n of more
than fi I'e Thousilurl i nllH Iii ta II Is III til" Bom hay
Presic!ent:y. This same III I I)) her rose to two !Jllndred
and thirty-two in the Cellsns of 1891. The popula-
tion of one HundrE'd am! :'Plt'llty-nille Towns was in
1872 shOl\'ll to be 27,78,822. or ,eYenteen per cE'nt.,
\\'hile thp p"pulat.ion of thp t\\'o Hnndreel anel thirty-
t\\'o '1\I\\'ns was found to he 3"",53,569, or nearly
nilH,teen per cent. of thp total popUlation. The
nnml1Pr of Towns hnrl thns increased by thirty per
cent, in hventy ),pa1'';, and the population of these
Towns had increaser! twenty-fi,'e per eent. TlJp t.otal
inen'nsp of population during the samp ]>f'riorl of
tWt'nty yf'<trs was only sixteen lwr cent., and thp Rural
Arens showpd an increase of fourtepn [IN cent. in
t1H'ir poplllation, The increase of '1'0\\,11" Rnd the
higher rate of incrpa,e in tIl" population of Towns, as
also thp slight increa,e in the relatil'p proportions of
Urban and Rural popnlatiow', show dearly that the
tendency towards rll,tication had bE'E'n cheekE'd, Rnd
that gradually but surely, the first signs of the new
:'sTATE OF 123
Cil'ie Life \\'ere lllallifp"4ing t\JPIl1,pln-'" The dift'pr-
eneE' in the relativE' pereputagp, of the Town and
Country population show,; aurl sC'arcely pereep-
tiblp Progn'"", hut that "light Progress was in the
right diredion.
T],p same faet i" hrought loome to UH by a careful
,!I,d\" of the Censns of OCl'upations. l'nfortunately
'10 filir <.-omparison <.-an he instituted hetween th,'
n,nlb of the ('ensu:; of 18i2 and those of 1891,
hl'l"HW;e of the different l'rinriplps 011 which the Census
Taillp" in each of these .YE'ars were prepared. How-
Pl'pr. taking the last C .. n,us enumeration as a basis.
WI' find that in 1891, out of a total population
of 1,88,84,704 enumerated, 1.10,08,233 were returllPcl
a, Agriculturists, wl,ich girl':; a proportion of nearly
fifty-nine per cent. TI,e division of Town and Coun-
try not sharply markei] ont in this land. The Town
ha, a considerable population, an,] the
Country has its own YiIlagE' It is, there-
fore. uspful to note the l"elati,"e proportiolls of
the different Cla"es of Occ11pations in Town and
Country,
The Agriculturists, who In!' fifty-ninp ]>f'1' cent. of
tIll' whole population, were rdurlled a, forming fifteen
per cpnt. of the :\Iale, and ninetee11 llt'r cent. of the
Female population, in '1'0\\'11'. a11d sixty-seven per
cent. of the Male and Felli a If' population in the
Country. Thf' Pun-eyors of Yf'getable Food were fin
124 ESSAYS ECONO:'IICS.
to sel'en per cent.. and of animal food one to two ppr
cent., of the entire population. The in Build-
ing ;\Iateriab and Artificers engaged in Building wt'rP
about two per cent. in Towns, and less tlian It lialf per
cent. in the Country. The Cotton Industry engaged
three per cent. of the entin' population, being
butI'd, howel'er, in the proportion of nine ppr cent, ill
Towlls, to ahout two per cent. in ihp COUll try. Thp
"'oollen, as also the Hemp and Flax Pllga"e(\
than a quarter per cent. of the population, hoth in
Towns and Country. The Industry had no rp\Jl'p-
:lentatil'es in tlte Country, but enga.ged in olle
per cent. of :Uales, alld Olle and II half per cpnt. of the
Female popUlation. The Dress-makers were one and
a half per cent. of thp elltire popUlation, but Ilfedomi-
nated jn Towns, ",hpr" they were fOllr alld a half per
eent. agaill:<t les, than one per cent. in the Country.
Gold amI :--i\l',j-,.<Initlis WE're nenrly one per cent. of
the entin' l'ol'lI}atinn. ]winQ. ],O\\'el'er, two per (pnt. ill
Towns, and I ... " t han a ],,,]f I ,PI' (,PlIt. in the COllntry.
Brass, (\)['I'PI' alld Till--fllit}" w ... rp found ill Towns
only, but the Iron worker,; or were
nearly "'Jually distrilm!p,] I,,tw('('n Towu lind Conntry,
with a slight prl'pOnderallep in tli" Towns. 'Yood,
H:ullhoo, and Cane "'urk ellgag!'fl ahont tll'O per ceut.
of the ]Jol'ulntion, tl":',;e ('la,,"eR being nenrly tlm"e
per cent. in Towns, and Ie", than one per eent. in the
,Country. Leather-\\'orhr,; amI f'hoe-makers were
rHEtiEYf STATE OF 1:'iI>L\:'i ,1\\ (1',\("ITHES. 125
alrnoi;t ('<llUllly both ill TOII'II and Country,
their proportion /rom Olle and II quartpr ]>1"1"
l'eut. to one alld a half l'Pr ('ent. of tht' l'olJlIlatiolJ.
Lelldpl's were a luxury of th" TOWlh', beillg
Il
p
arly 0111" and a IlIllf 1'f'1' ('ent. then, again,;t
than half pl'r {,pnt. in tht' Country.
, Contractors were exl'! w,i I'fly ('OlJ tined to
iN P
herp they formed olle alld a half 1'(']' <.:pnt. of
tilt' population. Lawyer,;, Doctor,;, l'ri""t,; awl
IIpel'8, were couSl'i<.:UOllS by tIHc'i}' ab.'t'IICf' in tlw
and their coml'aratiYe illll'ol'tanC't' in TOWII';
Wheat '
'!'at, they tog-etIIP}, made np tlJan
Unh118ked RI fl'
,ent. 0 the popu atlOll. waf; alino,t.
Jaggery .. jblltt'd o,'er To\1'll and l;onnf.J:j., bllt
ll.awCotton '\ f"atnre of it Ilhi!:ll helongel] to
.. it figll\'t'<l as high "s ludf lIP)' Cf'llt. of tilt>
Female population. Retirt"\ and (hl'lle\'"
of property, who liYef\ on illt.'I't>,;t, were also TOII'n
luxuries, being half lwr (!PIlt. tItpl'l'. ane! altog'dlwl'
absent in thp Country. If \n' hear rplativE'
perCE'lltages ill mind, we shall finfl that thNt' art' a
nnmlwr of nlO';p ('Ollef'l'llPfI witl,
the working of )Ietltls, Lenthf'l'. Tlt'alt'r, in Hooks,
Paper and and in Hard-wart' of all
'also Lamps, 3[atchE's, Timber, "'nkh-
makt'rs, Railway Employees, ('artmakf'l'i', Butcher:;,
Toddy-drawers and Liquor-sellers, Jagger}' nnd ;-\llgar-
makers, Contractors, Builder", Lawyers, Doctol's,
126 ESSAYS I:'>DIAl'I' ECONO)!ICS.
Enginf'f'rs, Factory hands, wllieh show a tf'lIdency to
innf'llSe, wldle men engaged in Oil-prf'sRing, Weavers
and of Cotton and 'Wool, Grocers,
Pf'(llars, ". ood-carvers, EIII hroi(lerers and Dealers in
(iold and vel', and .i ewels. l)riests, ;\[ usieians, Mili-
tary ('ja':ses, and Carriers, of all kill(ls, hale a marked
tendt'J1('Y the other way. Indm;trip,; whieh flour;ol-
f: f C I I
' I d .en t. in
hv tilt' al'our 0 ourts, anl t It'll' (epen en
I t I' I 'I I I It' Thl'
tent f'ucy 0 (ISappeal', w IJ f' t le ll( lU' ",lIeli
concel'll tllelll"eh'es whieh t be ,'ornforts and conveni-
ence of th,' :\[illdk Cia",,>', haw H tenc\p)]('y, as ind
i
'
" feprt'-
ted abo\,('. to (1'>I"(lop in "OI1n,e of time,
I
" f' I 1 'I I oll'ns ou!'
t Ie mll.l onty 0 t 1(> ,O\\"el" ( a"e,<, t IPY
"" ' .. 1' :.1 f I 'nt. of the
nnaueCtt:"u. 1..1) eJlIIf'r 0 (' }::tngp:-,.
'I 't t tl r ' fie one and
WIi, 1 1 or no, Ie tnlllRlormahou {) Inl ,
I t b
" 'II 1 ,lit predonn-
ec ou a ove IS lIlenta ) e, am IH', Illlh;1.
"l; 1 f'
of it. I have tried to ,tudy tIl(' '111h;tioll from all sides
with the help of Trade Hetunl';, ('eusus and
the Official Publications IWarin,l;' upon thp general
welfare of the l'rban and Huml population. I have
placed before you what appear to llle to he good grounds
for the hope I entertain that India has now fairly
entered upon the path whil'lI. if IJllr8ued in the same
"pirit which has animated it, hithert
r
('annot fail to work out it, inrlll,trial salvatio
"'hat we have to do in each ea"p i" to learn hy organ-
ized co-operation to compete with the Foreigner, and
take in as much Haw Produce from Ahroad as we
PRESEXT STATE OF Il"IlIAN :\IAXUFACTUHEii. 127
need, and work it up here, and to spnd in place of Ollr
Exports of Raw Produce, the same quantitiE'H in le:;s
bulky, but more \'!lltlabl{', after thpy ll<lve
undergone the operation of Art manipulation, and
afforded occupation to our Industrial Clas"es. I might
illustrate this by the following tablp.
Ls PLACE OF EXPORTING I CONVERT '!'HEM INTO & EXPORT
Oil Seeds Oil,
Dye Dyes and Pigments
Wheat Flour
Unhu8ked Rice Husked Hice
Raw Cotton Cotton (;ood
Raw Wool Woollen Uoods and Shawls
Raw !;ilk Silk (load,
,Jute and Flnx Uunny BugR, Ropes
Hide. and Bkins Prepared and Talllwd Leather
Raw To1)"oco Tollaceo Cured, und Cigars
Rags Paper
Wood llnd Tilllher ' ('ul'\'ed Wood and Furniture
I
I might multiply this Jist without pmL This is
the pmcticaJ work which Providl'n('{' has set down for
us to learn under the b{'st of tt'achers. \Ye have
128
ESSAY:; OX I:HHAX
alrparl.y maclp fair \Ye han' to impro\"E" our
Ral\' ,\ht"ria lR. or Import thelll II' beIl our f-\oil is
uusuited to thpir l'ro<lndi(ln, ""e Iiaye to organise
Labour ancl Capita] hy "o-,,],,>ratiQII, and Import freely
Foreig-n :-;kiil al1<l till we lparn onr lessons
properly and need no Iipll" Wp ha IP too
Ion!!: ; wp hayp now to lllnl 0111" 111't llancb to new
work, and hend on1" III usc]", to stnnli"r 1111<1 honester
lahour. This is thp Civic YirtllP we Ii 11 \"t, to learn, and
according as we ledrn it or spurn it II"<' ;;]lllll win or
lose in thp contest. "",, haH' to work against g-reat
ocld,;, wliich are rel're"pnted hy our (lId Traditions,
our l'owrty of Re,oun'e", and thp llO:;tile Competition
of Ad nmcPII Bacps, whose ind ll"trinl organization has
been cOllll'letcd ullder mort' fal'onra],le conditions than
our 011'11, ,\Iy in rel1dillg this 1'111'1'1' hefore
you is chiefly to ,holl yon that, J10twitbstanding
tlw,;e cli:;aclnllltagl'''. and thl' Free-Tn"I, Policy of thl"
GOyernUlPIlt, we may win, if WP will only j>e;'''PI"ere
in 0111' mHl dirf'f:t t Itpm by ('o-oreratioll on;t
large St';,]t'. into ti,t' pmpP!' ektlllwb. "",, cannot
aft'o!'!1 to \w dreamy a))(l "plf-contained, and turn hac:k
frOlIl om j>re:;l'llt oj>j>ortllniti .. " to a past whieh C<lnnot
be reea !led.
);atllral aptitudps, undpI'p]oj>ecl hut unlimited
rl"sources, ppaee amI ol'(ler, thl' whole \\" orld open to
us, our manpllous situation as the EmporiulIl of all
A"ia, these pricele,s will secure :;uccess, if
rHESE:'i'f STATE Ol" I\'IlI.\\' 129
WI' pndeavo\H to it by for it. Thi,.; is
the tTE'ed for tllP prol'agatiolJ of whieh, hy pxhortation
anrl E'xamplp, tllP Illdu,.;trial A"ociatiol1 of
India was "tart .. d, and] f .... 1 sure it will ,.;0011 bE'cOInE'
thp ('rl'l'ct of th .. wholE' Xation. flJl(i l'l1,nrl' tlll'1'E'r-
llIan .. nt triulIlph of thE' llI04il:'Hl in Ancient
Land.
Y.
.
INDIAN FOREIGN EMIGRATION.",
I .,...
N
o object of National Economy IS more directly
practical in its bt'arings lipon thf' l'fosl'erity of
the people than the question of providing l>xplmsive
and remuneratiyf' lahour commensurate with
the natural growth of the population. The Report
of the Famine Commission has emphatically drawn
public atif'ntion to the fact that" at thf' root of much
of thf' Poverty of the people of India, and the risks to
which thE'y are exposed in seasons of scarcity, lies the
unfortunate circumstance that Agriculture forms almost
the sole occupation of the malis of the popUlation, and
that no remedy for present evils can be complete
which does not in dude the introduction of a diversity
of occupation, through which the surplus population
may he drawn from agricultural pursuits, and led to
find their means of subsistence on ::\lanufaetures, or
some snell Employment." Tlwre CAn be no doubt
that the permalwnt sah-ation of the Country depends
upon the growth of Indian :Manufactures and Commerce,
and that al\ otl"'l" can only bt- temporal
Read nt the Judu.trial Conference, POOIIA, in 18!13.
lXDlAN FOREW:S 131
palliatives. At the same time, it is admitted that this
diversity and ehange of oeeupation is a wry arduous
undertaking. It pre-snppORt's a change of habits, it
postulates the previous growth of Culture and a spirit
of enterprise, an alertness of mind, an elasticity of
tl'llllwr, a rl'adint'ss to meet and conquer opposition, a
facility of organization, social ambition and aspiration,
a mobile and restless condition-of Capital and Lahour,
all whieh qualities and changl's are the slow growth
of Centuries of Freedom and Progress. It is the
object of AssoeiHtions, likE' those under thE'
of which we meet here to-day, to promote and
faeilitate this change and di\"ersity of occupation, but
it is clear that, a8 It present remedy, there is but little
hope of relief in direction. A Vllst majority of
tIlE' surplus poor population of an Ilgriculturlll Country
call only he naturally fitted to work as Agriculturist
Labourers, Ilml the slow development of our 2\Ianu-
factures, borne down as they are by the stress of
Foreign Competition, cannot at present the
much nE'eded l't'lief of work suiter! to their aptitudes.
Inland and (hE'rland Emigration, the overflow of the
population from tilt' congested parts of the
Country to Laml, where Labour is dear and highly
rl'munerative, can alone afford the sorely needed
present relief.
As regards Inland ElIIigration, we are all more or
less familiar with the migration of our surplns Agri-
132
0:-; I:-i'DIA:-i'
culturist hands to tll!.' largl' )[arkt't" of Lahollr.
especially to placl's likt' BOlllhay and Karac-hi. Thp
last Rpporb< lIft\'1' c1l'lIlonstrHtl'(1 tllt' fad. th"t
. the disinclinfttion of thl' of this Conntry to
leave their ancestral HOIllt',. has heen IIllleh t'xaggpr-
ated, and that a lIl11eh largl'r l'roportioll of onr
population show migratory habits thall wt' wpre
dispo:'>ed at first to b,,1ie\e. The Districts of Khandt'>h
and Panch )Iahals arl' heing tlllls settled Iwfort' onr
eyes. 'fhl' Sl1ml' process i" going on in HlP oth"r
Prodnces of Inelia, particularly in till' Punjah and tIll'
Central Provinc!.',.. A fllrthl'r dl'vl'lopment of
same system is supplying Ceylon in thl' extwlIll'
Sonth, and ill the Assam, l'aehar, :O;ylllPt.
and latterly th{, Distrie1 s of Uppl'!' HUl'mah, with the
ol'erflowing population of this Conntry. The WllOlt' of
the Tea and Cofft'" Industry of thp Conntry depl'nds
for its prosperity on the suceess of this Inland
Emigration. l\Iale and Femal!.' Recruiting Agents
are employed to secure tll(> servic!.'s of I nd!.'ntur(>{1
Coolies, and Sp!.'cial Laws hav!.' b!.'en passt'd for tlwir
protection. Th!.'r!.' is, besides, a considl'rahlt' flow of
Free Emigranb also to these pArts. From tIll'
congested Districts of H!.'ngHI, Behar and OriRsa,
many liS forty Thousand Cooli!.'s migrat!.'o in 1890,
and thirty Thousand people !.'migratpd in 1891, to
Assam, the proportion of Free Emigrants showing a
large incr!.'ase oyer the Ind!.'ntured and Sirdari Labour-
1l>IlIAX FOHEIGN DlIGHATION 133
.. ~ . Of course, all who emigrate do not abandon their
:'<Intive Homes. Three-fourths return back to India,
hut about one-fourth become permanent residents in
their new Settlement",
Inhmd Ellligration, hOll'ewr, eannot be, 111 any
way, compared in its volullle. or in its immediate
Rnd remote bearings on national prosperity, with
Foreign Emigration to the British and French and
Dutch Colonies beyond the Heas. I propose in this
paper briefly to g'ive a summary of the History and
Progress of Indian Foreign Emig-ration. Few people
are aware of the comparative magnitude of this relief,
tlm;; affnnled to our mrplus population. and of the
magnificent field for extension which is opening
he fore our viHion in the possibilities of the future.
In this respect, the expansion of the British Empire
in Afriea is a direct gain to the mass of the
population of this Country. The permanent open-
ing' up of the heart of Afriea and of the Central
Regions of Australia would not be possible or advan-
tagt'Olls e,'en to the indomitable resources of British
Hkill and Capital, if it did not sec\ll'e the help of
the unlimited and intelligent Labour and Skill of
I ndian Emigrants. Of course, there are difficulties
in the way, as there will be difficulties in the way of
all great enterprises. But the certainties of the
future are too imperative to be much interfered with
by these present dangers and incouyeuiences. The
134
ESSAYS ON INDIAN ECOXO:IIICS.
habits, temperaments, and prejudices of our
people ha,oe acquired an inveterate force which makes
it no easy task to adapt themsehoes to new surround-
ings, and yet if the old thraldom of Im'judice and
self-satisfaction and patient is ever to be
loosened, and new and hopes created in
their place, a change of homt' snrroundings is a
standing necessity and a prl'paratory dh;ciplinl', who,!'
material and moral h!'nl'fits can never be too highly
estimat!'d. Mr. Drap!'r, the American Philosopher, ill
his History of thl' Intellectllal Dt'Yl'lopment of Europe,
went so far as to say that the Dotage and Death, which
had paralysl'd Oriental Races, could only be cured by
the Frel' Transplantation of people into Foreign
Lands, or by Free Intermixture in hloofl with mort'
Energetic Races. "'e are oursl'hes witnesses of
the undesirability and hopelessness of the sec-ond
Reml'dy proposl'd. The other reml'dy is more hopl'flll,
and it is on this account that I have ventured to
take up this suhject for discussion at the present
Conference.
The First Question we have, then>fore, to consider
in this connection, is thp extl'nt of this Foreign
Emigration and the Localities to which it has spread.
The Localities where Indian Coolies emigrate arl'
l\1auritius, Natal, Jamaica, Trinidad, St. Lucia,
Grenada, St. Yin cent, 8t. Kitts, the Fiji Islands,
British Guiana, French and Dutch Guiana, the
I:'i'IlIAN I'OREW:'i'
135
French Possessions of Guadeloupe, Re-
union, tht' Danish Islan,1 of St. Croix, Ct'ylon, and the
Straits St'tt1ements. In 18i 4, till' (iovprnment of
India a}/pointffi a Rpf'cial Officpr to rP1'ort upon the
'Iuestion of Coolie Emigration from India. That
Heport givps a dt'tailpd Ileeount of tllP condition of
I't'ttlernpnts, and I shall filA try to summarize
ib; It'adillg featurt's, and th"n hring down the
information to mort' rt'cent tilllPS, with the help
of ,uch Official Publications as Wf're made available
to Illp.
MAURITIUS .
.\IlIuritius is till' I am 'IJPaking advisedly, of
our Indian Colonial It is an Island,
whieh lies on the East Coa,t of Africa, about 20
l.atitude and 570 East Longitudf', and has a
total Area of seven Hundred lIlilf''', thirty-se\en miles
long, by t1lirty-four milt's broad. ThE' Tt'ml'eraturt' of
this Island f'.lngt's from 70 to 80 Fahreniwit. It has
the closest affinities to India in it" Climate and its
Season". Out of a total Population of 3,10,000,
nf'arly two J.akh, Wf'rf' Indian Cool if'S in 1861, and the
rl'st partly Europf'ans, N egrops, Arabs, and Creoles.
Till' numhf'r had incrf'asf'd to 3,16,000 in 1871, the
addition \wing due chif'fiy to the incTf'ase of thf' Indian
PopUlation, while the non-Indian Population IlCtually
diminisitf'(\ by nearly 18,000 Souls. The latest
Returns for 1881 show, comparati\p\y, still better
136 E;;SA YS ON I:> DlA:>
figures. The Indians were 1,50,000 lind ahout
1 ,00,000 out of a total Population of 3,60,000
Souls. than two-thirds of the Population of the
Island is of India.n Origill. Tltp naturally
preponderate oyer the hpin!:{ in tlte propor-
tion of nearly one and a balf to Olle. ()f the two
Lakhs and mo!'e Indifm in l8i L a Lakh
and a halt wpre I ndentnred Emigrants from India,
about two Thousand had gone of tllPir o\\'n accord,
and fifty Thousand were the children horn to
Emigrants in tllP Colony ih;elf. The Indian Ellligrants
haye no competitors ill tlte Island in the matter of
Agricultural and they also find con,iderahle
employment in Senice and in the Docks
and in Trade, the bttt'r ('hipfiy Retail Trade. Tlwre
are also eleven Indian Planters, and one .}ranager of a
Plantation. The Chief Industry of the Colony is tilt'
production of and the )Ianuf!lcturt' of
Sugar. TIlt' Indentured Indian adult Coolies get,
hesides their rations and houses free of rput, five to
seven Hupees a 1Il0nth, alld haw to work six days in
the wPt'k, and ninp hours eaeh day. Medical care is
free of and there is a free return
provided at the end ot the Term of Five Y t'ars.
There were about two hundred and fifty Sugar Estatps
in l8il in the Island, which gaye Plllployment to
1,20,000 Chiefly Indians. Of this number,
nearly 50,000 had pmigrated from the Calcutta side,
INIIIAX FOHEWN E:>IlUHATION.
137
about 27,000 from )IndraR, and about i ,000 from
Bombay. Sincp 18il. Emigration from Bombay ha,;
apparently fAllen off, owing to the risp of the l\lill
Imlnstry in this Presideney.
The History of EmigTation to l\1aUlitius eommences .
with 183-1. Betwepn 1834 and 1838, as many as
25,000 Indians emigratp(l to that hland. From
1838 to 1844, there WAS II prohibition in consequence
()f some well-fonnded complaints of In 1842,
Act XY. of 1842 was which n'-0)l("lled )[a11-
ritins to Indian Emigration. In 1884, the Gow>m-
mpnt of tile hland took up the work of the proteetion
of Indian EmigTants ill tlwir own bands. A bounty
WAS paid ont of Colonial Rp\,pnues for each labomer
imported, and tile Government reeeiyed the orders of
the And SPIlt tlJPm to tlleir appointed
Agents in India. TIle GOYernnl('llt of India appointpd,
a Protector of its own to chpck thp of
the Colonial Agpnts.
These ArrangpmPllts hlsted from 1844 to 1859,
whpn, owing to the accounts of fearful mortality on
board thp Ships which took the Emigrants to Mauri-
tius, Government enforcpd a tempol'ary prohibition,
which was removed on snti"factory
assmances being given that the abuses (,ornplained of
would not he IIgliin permittpd. In 1859, lhpl'p was a
appointed under the Presidf'llcy of Dr.
Monat, to frame RpglllatioJls for the ('oJlvpnif'Jl{'e of
138
ESSA YS ON INDIAN f:CONO)IICS,
Emigrants on hoard the and fresh Regulations
were enforced for the protl'ction of the Indians, There
was another Commission of Inquiry in 1866-67, which
inqnired into the Causes of an Epidemic in
which 1'rovl'(\ fatal to a lll!'g'l' Ilumhl'!' of till' India'1
X otwithstandin g, t hI' henefiel'n t intl'rference
of the Governmpnt of India. th" Official Heport for
1871 states that the tpllflency of J,pgi"lation
has heen towards spcnring 11 eOlIlI.}ete dependence
of the Indian Lahourl'rS UPOll the who
employ thelll, for Free Lahour is both directly and
indirectly discoumgpd, while the Indenture System is
more and more l'xtended, The condition of affairs in
1883 is thus dl'scrihed: "\'{hile the Government of
India ha\'e takl'n gnat {'aT'!' to se{'ure t.he satisfactory
rl'gulation of the Emigrnnt Ships, the Laws of the
Island Imn" b('en so 'unjust to the Colonrerl People, and
so much to th(' admntage of th!' Planter" that gross eviis
and ahuses lu\\'e arisen from time to timp, In 1871, a
Royal Commission to inqllire into the
ahuses ('ompillined of. Variolls Heforms were recom-
m!'ndpri ami have heen
Hut th .. are not remarkahle for thf'ir reHpect
of the of the Coiour .. d People, ami th .. is
Iiahle to ahuse, unless k"pt Hnder vigilant control
hy Allthority."
ThEo'total numher of SchooiH-GovernIJ1Pnt and Aided
-in the Island, was ninety-two, attendl'(\ hy about
139
nine thousand and fin' hnndred ScholAri'. Out of this
number, fourteen per cpnt. wprl:' Hindus, fin' per
cent. :'Ilahomedans, spI'pnty-t hrpe pl:'r cpnt. Roma n
Catholics, and eigllt IJPr cent. Protpstant Christian"
There were sewn hundred and twenty-fil'e S('holars in
all, of Indian parpntag-p In 1871, attending twenty-fin>
Schools. :'IIuch, then-fore, remains yet to hI:' donE'
for the Edlleation of the Hindu Population of tIll'"
The Lahour are very stringent,
and are stri('tly enforced. The Indian Population on
the r"land follow, bl:'sides Agricultural Labour on the
farms, the occupation of CarpE'nten<, whose wages are
on an :lI'erage 3 a month, of Blacksmiths, "'aslwl'-
men and Tailors, who earn half that rate, of Sugar-
Makers wllose lUi' 2, and of Mill-drivers wllO
earn 2-108. Then' are also Masons, Gardeners.
Cooks, Coachmen and Grooms with wages ranging
from fifteen to twenty-eight shillings. The Deposits
to the cl'l:'dit of thp Indian ImmigT!lnts in 1871, WI:'I"I."
nearly 83,000, and thl:'ir RpmittaIH'Ps to India
amountpd to RR. 20.000 in 1871.
Tlw of the I,laml, as shown aboye, plal'e
some Tl:'straints on tlw liberty of Inclians to settl ..
down as Frcl:' A lHlUlher, about
twpnty thousand in 1111, hal"c, howen-r, settll'd down
as Frel:' :\1:en, and ellrn thl'ir lil'ing as market Gardl:'n-
ers, Artizans, Trad .. snwn and Job Contractors, and a
l-!O
ES'lA YS ON I"mAlI! ECOXo)llCS.
few have even attained the position of :'Ihmagers and
Owners of Plantations.
The of Immigration in :'IIanritius,
fumished by the Protector in that
Island, whieh I ('ould Re('un" j, for 1890, It shows
that "bout t\\'o thousand Ellligr"nt,; (,HIIl(' to :'Ilmu'itius
in 1890, from Calcutta. :'II"dr"", and Bombay, and
about OIW thousand an(] fift:>'-folll' returned hack to
India.
of the
The Females Wel'P a hOHt t I I irty-six pel' cent.
}Iales, The llUlllhel' of tho,;p who retnrned
to India during the pa,t fil'p ypar,; has ranged from
one thousand and fifty-four to two t housalld time
Illlndred and fifty, giving an aYC'rnge of
hlllldred per year. Ailiong thosp who l'eturllPd in
1890, three hundred amI sevellty-seYell \\,pnt to
Calcutta, three hundred Hlld forty-sf""n to :\Iadras,
and three Illlndred and twenty-one to Bombay. The
total amount of Srwings bl'ollgJ.t by tIll' returned
Coolies was Hs. 32,394 ill 1890. I n predous
years, this total was as high Hs, 1.40,000,
Rs. 1,03,000 and 1,23,000 ill 1886, 1887, and
1888 resl'ectil"l>ly. TIlt' Hayings ill Deposit Ranks to
the cI'edit 01 the Indian Coolies resiclf'nt in til" Colony
show an average of Hs, 16.50,000 rIming the tlm'e
years 1888-1890. Out of tlH> olle awl a qnarter Lakh
of the Indian population rpsi(li ng on
more than I,alf do not work on tIlt' Plantations, while
le;;s tllan half are employed Oil tlll' Plalltatiolls, which
nWlAX lOHEll.:\ E;>.llliHATlOl'i.
HI
numhered ahout one hUlldred ami twelltY-Bel'en in
1890. This our I'PI'iew of the Indian Settlp-
mpnt in
BRITISH GUIANA (DEMERARA)
Thi" Colon), lie, along the ;l\'orth Coast of South
America lwtween 7 and 8 North Latitude and 57
0
to 60 Longitudp, and lia,; a rich "oil.
As in the cultivation i" confined chieRy to
Sugarcane. The Season,; arp, as in India on the Coa"t.
only two, th .. Raitly and the Hot 8pa80n. The
Temperature is f'p)doHl bpi ow 75. and risps to 90
0
Fahrenheit, and tllP al'Nag'''' Hainfall is 100 inphes.
Out of a total population of onp and II q \larter Lakh in
1851, thpr ... werp only 7,682 ('oolips from India, and
about 2,100 Enroppans, tlip rest werp Nllti,'p" of the
('ounby, ami ::'\pgrops. "'hE'n Negro Slnnry was
abolislwd in the "'est Indian hlanrl:<, it was proposect
to transplant the free Negroes to British Guinna, hut
the attpllll't faileo, and in 1838, tIlt' first importation
of 400 Indian Coolies took place. In 1844-45, the
numher of Indian Coolies imported 4,616.
Between 1850 and 1870. about 65,000 Indian Coolie,
were imported, Ollt of whom 7,000 J'f'turneu to India
during thl' ;;lIll1P period. In 1871, thl' total popula-
tion of the Colony WIlS two LnkhR, out of whom 43.000
were Indians, half of them working on the Plantation;;
under about 9,000 were FrE'l' Labourers,
142 ESSA YS ON INDIAN ECOl'lOMICS.
and the r!'st, ahout 10,000, were otherwise elOployed
ill Towns and Yillages. The Labour Laws in Guiana
are as string",nt and one-sided as those of Jlauritius.
Tit!' Labourers have no summary remedy for the
l'ecO\"ery of their wages exceJlt hy a civil suit, while the
Planters' remedies in case of the absence
of the Coolies are most ample and strict.
are I'm ploYI'd m one hundred and
or desertion
The Coolies
twenty-threE'
Plantatiolls, out of which number, erg"hty-five are
{'it iter owned by Absentee Landlords m London,
Liwrpool, and Hri,tol, or are mortg-aged with Absentee
This i!' a pE'culiar feature of the Sugar
Indnstry in British Guiana, which distinguishes it
from the ",statp8, which a)"p generally owned
hy residf>Tlt French and Crpole Ownprs. Owing to this
ppculiarity, task work is much preferred, lind rigidly
{'nforced in preference to day-work. The
-t'mploy (herseprs, nnd below thpm lire Head-mpH who
are ('alled Drivel"s, who slll'"rvisl' the gang,; of Lahour-
The Dri \"f'rs in charge of Indian gangs are chiefly
The Indian Coolie does not get through
the same task as the Negro Lahourel', but thl' latter
nel"er works The Indian Coolie is more
regular in his and he is thrifty by nature, and
lin VI'S money. The Guiana Coolies are independpnt in
their hParing. The Chinese however,
hoth Indian Coolies and XegropR in their sf'veral
-('l{cf'lIpnct's. Thp)"p wpre on till' Plantation in 187],
INIJIAN FOIl.EIliN EMWHA'flON. 143
about '*'*,000 Indian Coolies, 1,250 Africans, 6,600
Chinese, and ahout 1,700 Portugu('se and 'Vest Indi('s
111('11. Out of the 44,000 Indian Coolies about 9,000
men were not indentured. The Wagt's earned by an
adult Coolie range from st'\"en to ten Annas per day,
and the cost of living was six Annas a day.
r('ct'nt Legislat:on enforces tht' payment of
twt'nty-five Cents, or ten Annas per day, as minimum
Wages, of an adult Malt' ov('r sixteen years, and
twenty Ct'nts for each Female Jabourt'r. Notwith-
the hardships of the Labour Laws, the high
wagt's earned have indu('('d nearly fifty pt'r cent. of
the Labourers to re-indentUl'e themselves on the
expiration of their first Term. About 18,000 Labour-
t'rs out of 40,000 so indentured themselves on receipt
of fifty Dollars as bounty. There are besides, 8,000
or 9,000 Free Coolies who have saved money, and
earn their own wages. The agriculturist Labourers
ha\'p, as in free lodgings and medicine, and
free rations in their first year of settlement. The fact
that there are thousands of Indians who do not care to
Tpturn to India, even after a stay of fifteen or twenty
years, goes to show that, on the whole, tlwse Indian
are well-off in the Colony. While the
majority of the Indian Settlers are employed on
Farms, a few keep Cows and ply Carts, and there are
Lodging Houses and owned and managed by
the Indians. A few have also enlisted in the Police,
144 ESSAYS ON INmAN ECO:-'-O)[(CS.
anrl in thp Arm)'. About 2,820 Immigrants who
rpturJw(\ IwtWPpll 1839 and 1869 hrought with tllPllI
95,000 Dollar;; to India.. Thp men arp to women in
the propOl-tioll of thTp!, to one. The Ma homerlans and
the HimluR settlpd in the Colony obseTl'e Jlohoram,
and thp Hindns ],1\\e built two Temple,;. might be
pxpeeted, thp IlHlITillg!' tie sitH 100Re with tilt's,," lIIen,
and they also indulge in excessive drink.
Tlw }{p)lort of British Guiana for 1890, shows that
there were in all 1,07,424 Indian Coolips-62,OUO
:\lales, 23,000 FPlnlllps, a.nd 17,000 Chilclren. About
73,000 of the numbt.'r WNe in(lpntured, and thp r!'st
not residing on estates were about 35,000. Out of
72,000 on the esUltes, 46,000 wpre and 26,000
These Indian i-\pttlprs oWlled 21,000 Cattle
and 5,200 Sheep. About 2,125 C'oolips returned to
India in 1890, lind brought with th!'JIl 25,000 Dollars,
worth of jpwp])ery, and 1,17.000 lJollars, worth of
" .
TIll' ])t'posits of 6.323 Indian Dt'positors
wt're 1,16,000 Dollars in i-\avings Bank,;, lind 259
Depositors Iwrl 10,283 Dollllrs in OfficI-'
TRINIDAD.
This hland lit's off tll!' of Yent'ztlt'la III 10"
to 11 0 Xorth LatitndP and 61
0
to 62 \Yt'st Longi-
tude, and lms an arpa of two thomanrl square miles.
The Temperature rangps from 71 0 to 85
0
Fahrenheit
and there are only two f\t'asonA-the Rainy and the Dry
I:I'DIAN DIWRATION.
145
SI:RSOn, and the Ileat considerable. Coffee,
and Cocoa tJ It' eh it'!' prod llced in the
Plains, wilieil intt'rl'pne hptwPPJ1 the three high chains
that trau'rse till' Ipllgth of the Island. Cotton,
Tobacco, and Indigo are ill"" l,roduced in large quan-
Sugar is the Chi,..!' Export, and itti l'flltH' rose
from nearly fifty Lakh, tu "pn'nty-fil'e I,akl" between
18.36 and 1867. The totu J popUlation of t hp I"land
in 1856 was 68,000, of whom 4,000 wel'f' )\atives,
and about Africans, flnel 4,000 Indian Coolies.
In 1871, the Indian lllllld"rants had inerpaspd to
,.,
llf'arly 23,000 Souls, bpsirles 454 Indian Childl'f'n born
in the Island. There is, as mmal a Guvernment Agent
who inspects the estates, and reports to the Gorern-
lllent of the Colony tIl(' cundition of the Coolie
Employee,.. He allut,: tI,e Coolie labourers to the
pstates anel (',1]]<:pls thp Indenture of any Immigrant
whose employer disobey, thp law, and ahu,e, liis
power. 'I'hp ('ontraets fol' s('nice are generally, for a
tE'rm of five y,..al's, and thp work da.ys in th" year are
280, and the 1,0m, of work ninp homs a day. As in
British Guiawl, the task work sy,tem finds most favour
with the PInpl"yer. The prescribed minimum rate of
is twenty-fi\'e Cent" or ten Annas per day, for
an adult Male Labourer. 'Wages are paid fortnightly,
and may be summarily recoH'red hy an application to
a Justice of the Peace. The laws against vlIgrancy
and absence and desertion are very stringent, and
146 ESSAYS 0;'11 ECONOl\l\CS.
strictly enforced. Free rations are paid III the fir,t
two years of the Indenture, and afterwards they arc
paid in money. On l'ompletion of the fh'e years' term,
a certificate of industrial residencl' is given, lllld after
ten years, a man is allowed free passage back to India,
.or hp mny in lieu thereof, claim a Tell Acre Grant of
('rown La nd. In this the condition of thE'
Trinidad Coolies fayourably with those of
and Briti"h Guiana. Children under ten
are not indentured. Out of 18,556 men employed
on the Estates in 1871, 10,616 were indentured, and
7,949 were unindenturpd. The average nrriyals for
<"ach ypar between 1867 and 1871, were 2,000 Coolies
per year. There were 12,000 against 6,500
Fpmale Indians in the J;;land in 1871. The general
rate of "'ages is consic\"rahly on'r the minimum of
tWPllty-nve Cenh, and rangps from thirty-five to forty-
three Cf'nts, or fourteen to sixteen Annas per day.
The numbH of Coolif's who returned to India in 1869.
waf; 3;2, and they brought with tLem 16,000 Dollars
as Savill!!;,. In 1870, about 408 men returned, and
brougllt, back nearly 13,000 Dollar,.:. l'p to 1871
abont 285 Indian,; commuted thpir hack l,a,.:sage by
{laiming of Lawl, lind 253 jJnH)m.-pd pxemp-
tion from eOll1l'u],;ory work under tl,P ilHlputure for
the last two yenr,.; of their tf'rm. In one Pl'Oyinep, 357
adult J\fale,;, 199 Females, lind 246 Children are now
settled on tllPir own farms. BE'sidE's the 18,000 people
INIlIAN FOHEWX E)II(;HATlON.
147
employ!"\ on tilE' Estates, there are 9,000 Indians
ahsorhN\ in tl1P general population. Abont 7,000
people have foregonp their l)rivilege of a back 1'IIs,;age.
Ahout 131 Indian children attended the school, in
Trini,lad in 1871.
In 1884, tltp Tl'inidml J mlian Coolies celebrated
their JIohorarn fe"tival and a riot took place, whieh
was punisher! with such that it formed the
subject of an Offieial Inl] uiry. The dispute arosp from
the rivalry of tIle partizanR of opposite band, of Tahut
processionist,., and Ill,}!'e tlU11l twplvE' thousand Coolie,
took part in the riots, and the Police had to fire
with a view to disperse the rioters. Tn-ell'e CooliE'''
were killed, and four hunell'prJ injnred in the tumult.
Sir Henry Norman, a retired Anglo-Indian, once
Governor of Jamaica, was appointe,l to rPl'ort upon
thpse His Report shows that of tllf'
total number of Indirrns in Trinidad, less than one-fifth
are :\lahomedans, and the re;;t are Hindus. The Hindu
Coolies took the ehief part in the Tabut processiol1.-.
and some of the :\[ahomedans had actually asked thf'
Gowrnment to pnt a stop to the disordprly cond\lct
of the Hindu on religions groulHlt'. The
Tabut procession is turned to account by the Hindus
as a day of Xation:li demonstration. 'rhp In(lians in
'frinidad formed two-thirds of the entire population.
In one district where the riots occurred the Indian
Coolies were four-sevenths of thl' poplllntiolJ. ::;ir
148 ESSAYS )CI'D1AN ECOXo)UC'S.
Henry Norman officially reported that for
some years made the Coolies independent, and ewn
oYerbearing. A large portion elect to remain in
Trinidad when they are entitled to Free Passage baek
to India. Those who go to India take large of
money with them, and not a few return haek to
Trinidad. Occasional eases of iII-treatment might
occur, but in the opinion uf Sir Henry Norman, the
Coolies are yel'Y well treated. Tn 1890-91, Coolie,
numbering about 3,800 landed in Trinidad, }leo
about 2,400 autl WOlJleu about 1.400. About 685
returned back to India. taking "ith t1WIJI 1lt'llrly
11 ,000 Dollars f'lwings. Bptweeu 1851 and
1891, about 12,000 Coolies returned, and hrought
twenty-four and 11 half Lakhs of their
Sa "in!.:",". The a!ll1Unl l'elllitt!lnCeH to Iudia by Trini-
dad L'oolips range from 15,000 to 23,000. Betwe\'Tl
1871 and 1881, about 24,000 Coolies weltt to Trini-
dad, and about 3,500 returned to India. About GOO
Coulie:; cOllllIluted their Free Passage. and settled in
the bland. Since 1869, about 1,IG8 ('oolies han"
receiyed their land allotments of ten Acres each, 1,475
hale each rf'cei,-ecl a Ii,-e Acre allotment, and about
3,100 took t1wil' 5 bounty in lieu of Return Passage.
The total populatiun in Trinidad in 1891 was 71,533
of whom ut'ady 55,000 were Coolie;,. There Wt'Te
2,750 Coolies wlto had deposits in Sa,'ings Banks, and
thi, amount was in all 31,000 Dollars. Tbe numher
INDIAN FOHEHiN Emu RATION.
149
in 1881 was 1,500, who had 24,000 Dollar,; in
deposits. There wert' \fifty-three Schools attt'nded hy
about 2,900 Coolie-chi1dren-both boys and girh-in
the Island.
FIJI.
Fiji is an Island in tltt' South Pacific, wlwre
Emigration appear, to ha \'e cornrnE'nced within H'ry
recent times, since l8i 4. In th", first yf'ar. 480
, '
Indian Settlers landed on the Island. :'-linee then,
nearly 10,000 Indian Coolie,; have been impQrtf'd into
Fiji. The actual number resident in 1891 in the
Island was 8,000. The numher who went to Fiji
in 1891 was 1,050 in all. Out of the total nUIll-
bel' about 3,000 were Indentured LaboUl'er8, and
the rest had completed their term. The Births in
the Island were about 15l, /tnd the Deaths 229 in the
Indian population, and there were four iUarriages.
A :'-Ipecial Law for the Registration of Indian
was passpd in l891. The Chief Industry
in the h1and is the cu1timtion of Sugarcane. The
working days are "ix and a half in thE' week. The
tf'rm of Indenture i" five years. The minimulII rate
of wages is one Shilling for adult Male, and nine-
pence for Female Labourers. RRtions are provided at
the rate of five-pence for each person above ten year.s
of age, for six months after arrival. Lodgings and
medical relief are prodded free. Fri'e Return Passage
is given after five 'ears' service. In 1891, there were
150 ESSAYS OX IXDIAX
343 Coolie, wllo had depo:;ited 10,638 Dollari' in the
Savings Hanks in J<'iji. The Humber of and
the amount <if'posited hn\'e both steadily risen,
1885, when thprp were 106 dl:'positors with 3,470
Dollars to tlleir credit., Similarly, as against tf'n
Coolie, who remitted 84 to India, there \\"t'rt> In
1891 as many as 102 who remitted ,,)4ti to
India.
ST. VINCENT.
fo't. Vincent i, a ,mall I,;land in the Alltillt>s (Troup.
and lies in 13 Xorth Latitudl' lUlcl til n West Longi-
tude. Its area is 130 square miles. It proo\\('f'i'
Sugarcanf', Arrowroot, Cocoa and Cotton. The tf'rm
of Indl'ntnrp is for threl:' years. though it may IlP
pxtended for two years morl', ami at thl' end of
eight years, the Indian Immigrant Coolie is entitled to
a Free Passag'e. For re-Indenturing, hounty is g'i\'t>1l
at a rate fixerl on a sliding scale, according to thl'
num bel' of years of residence. The minimum rat 1':; of
wages are fixed hy law at ten-pence a day for adult
males, with lower rates for women find chilorell.
Free rations Al'f' only given in the first month, and
by special Arrangement for two montbs more, line!
after that ppriocl, the wages earnf'd co\,pr all paymPllb .
The work-clays and working-hours are the same nl' in
the other The OWlIers of the Estate;; are
l'eqnil'erl to provide convenient lodgings and free mpc!i-
cinf's for their Indian LaboUTPl's. In the year 1891
INDIA:; FOHEW:; E;\IWHATJO:-i. 151
about 1,273 Indian Labourers earned 8,821 Dollars in
the first six months, and during the next half ypar
1,442 Indians earned 18,000 Dollars. This giyes an
ayerage of eight to twelve Dollars per man pPt
month. TllP Iudian Coolies nmnherpd 552 in 1864,
and rose to 1.-1-12 in 1871, out of whom 792 were
adult ::\Iales. 3:38 were Females, and about 300
Children. Since 1871 Rt. Yincent is not mnch favour-
ed by Indian Coolies, and Emigration has fidlen off
in this Colony.
GRENADA
Grenada i, the Routllel'Dmost hland of the
Antilles Grollp, [w(llies 12" 20' North Latitude and
61
0
20' \\' e,;t Longitude. It Ilns an area of 133
square miles. l'offpe, l'ol'on, Cotton, Sugar, Indigo,
and Tobacco ;m' the chief products of the Island. The
provision>; of tIl(' Immigrant ],pgislation are the same
as those of tLe Colony of St. Yiucent. IndenturE'd
. .
ImmigTantii agree to work for fiw years. Free
Passage is earned hy the ypars' industrial or ten years'
total re,idenc('. In 1871, there WE're 1,863 Indians
in tlli" I,land, nearly 1.000 bE'ing adult "Hales, about
400 alult Females, and 450 Children. ThE'se were
settled on fortY-3ix Estates. ThE're were, besides, some
frE'e Settlers, but their number was not largE'. The
able-bodied men pam one Shilling and three-pence
per day, but the minimum rate of wages fixed by Law
is eight-penc!'.
152
ESSAYS ON ),;CONOMICS.
In the Census of 1881, the number of Indian
Immigrants was shown to be 1,052, and in 1891. this
number was reduced to 1.01:'\. The Coolies are. for
the most part, engap;e<1 in agricultural operations.
Many of them, however, are Proprietors of small
Holdings of Land, and of tolerably large
and a good many are engagwl in business. About
500 of the Indian Coolies we)'!' shown to he Hindus
by Religion, 72 were :'Ilussalmans, and tl,e rest
Native Christians. The :'IIis;;ionary School" art' largE'ly
attended hy the ehildren of the Indian Settlf'rs, and
this circumstance aCCollllt, for the large percentage
of Native Christian". -'Iolit of those who are now
living in the Islancl Wf're born there, or haye comp
from othf'r neighbouring bland;;.
ST. LUCIA.
St. Lucia IS an Island in the "'indwnrd Group
and lies in 13 50' :-.Iortl, Latitude and 61
0
Wpst
Longitude, amI has an area of 245 square miles.
The Temperature ranges from 71
0
to 83
0
Falll'enheit,
and the ayerage Rainfall is about 94 inchl's. It bad a
population of 24,123 Souls in 1854. out of whom 947
were "'hites and the rest persoll;; of Colour. Sugar-
cane cultimtion is the chief industry of the Island.
'i'he laws rpgnlating Labour arp clearpr and more
stringent than the laws of any other Colony. The
Immigration Agent, who is a paid Gowrnment OfficPJ',
I:-lDlAN FOHEIGN 153
impec'ts the Ships on their arrival, aud asslgns U)e
Immigrants to the Plant.ers. The wages are required
to he not less Ulan those paid to free labourers',
and as far as possible, the allotments are made
so as to keep husband and wife, child and
parent, toget.hpr. 'fhp Indenture is Hlt'n drawn
up and signed ]1f'fore a 3fagistratt', nnd the
Agent l'isits thp Estates to see the laws
pa"erl for thp Protpction of the Coolies are strictly
pnfOlwd, anrl that thp Lahonrers are fairl) treater!.
Th(' ('Oil trad s Me for fin' years, bllt the Imll1igTant
may redeem the last two years by payment of a
fiXl'f1 sum of monpy. Aftpr fh(' years of industrial
sen'ice, he obtains a Certificatt' of Discharg(', and after
pigbt years, he is entitled to 11 Free PHssaw', which
l,e lIlay commute into III 011 t')' , or II!' may aC'cept a
Grant of Land instead. The ratt' of wages ranges
from olle Shilling to 011t' Shilling IIIHI four-pence per
day, for adult 3Iales, nnd ten-pence a day for Fe-
Illales. The Employer is re,!uired to provide proper
lodgings for thp lahourers, and each honse has an
llcre of Provision Ground. For the first thrl"E' months
free rations art' alJowpd, according to a fixl"d scale.
The Penal provisions against absence from work
and desertion are stringent and strictly
Up to 1862, in all 1,535 Immigrants Wl"re imported
into this I8land. After 1862, no Immigrants were
illlporter! for many years, In 1864, the number of
154 ESSAYS OX IXDIAX ECOXOmCs.
Indian Immigmnts in this Isblllci wa:; 1,316, and
they were reduced to 1,Oi9 in 1868. Though all had
become entitled to free l'ltssagp hack to India, onl)'
460 accepted the boon. Tht' rest chose tu take the
bounty and hecome permanent RI',icients on the Island ..
Immigration to this Island lws \WPll resumed in rect'nt
years, since 1881. In 1891, there were on the hlancl
. in all 2,500 Indiam. out of whom 1,640 were employ-
ed on twenty-two E,tates llnd 225 of these Indian"
posSl'ssecl twenty fOllr Illllldl'eo and eighty
Cattle, and two hundred ;-;lH'ep and Goats. Some
of the more of t.ht'Re Immigrants had
begun to pnreha,e land with the object of forming
a purely Indian i'pttlement of Peasant
on thl' Island. There WE'rE' fire Schools attended
by the "hilrlrl'll of the Indian Coolies, which recl'ired
Grant,in-airl frolll Governml'nt.
JAMAICA.
Jamaica IS an Tsland in tllP \\' est Indies, anrl
bet\\'epn liO -lO' and 18 50' Xorth Latitl1df", ami
76" 10' to 78 30' West ],ongitl1rlE'. It has a surfacf"
arE'a of 6,400 square miles. TlwrE' is a mountain range
of hpjght which runs right through thE'
mirldle of till' Islaml, and tilt" plains gradually slope down
its sides to the sea. Its chief products are Hugar, Hum,
and Coffee. Cotton and Indigo Wf"t'e formerly produced
in largp ()llilntitie" but thf"se industries havl' either
I:"i'DlA:"i' l'OHEIti:"i' DU(;IUTJOX. 155
much declined or c1i:;appearf"d ill re<:Pllt ypnr,. The
Indian Coolies are employed chidly ill SUhar ;lll(ll'offee
Pilmtatiolls and in the Breeding Pens on tht' hills,
where excellent Clttle ami are reare,\ (>n the
rich grazing gro\llJ(]s that cap these hills. The Indian
Immigrants were first introduced in 18-l;). hi the
firHt three years, about 4.000 Indiall8 \I'pn' illll',)rtec1
into the Colony. For the next tweh'e p'al', IlIlllJigra-
tion was stoppE'd by reason of iHternal tron11I,, ill tIl<'
Colony. It was resumed Il1 1859, and tile
next twehe ye[\1';;, about 9,000 Indian Coolie, \\ere
imported. The Immigration Agent allots the Illl-
migrants to the IIceording to their 'I'ants, aft"r
satisfying himself that the conveniences of the Coolies
will he duly looked after. The l'eriOlI of Inden-
ture is five As elsewhere, the Agellt is n'qnirt'd
by law to Sf'e that wi \'('S and husbands,
and children, shall not be sPllarflted.
allotment, tbe Immigration Agent feeds
the Coolies at LToyermnent expense.
and parent"
Before thE>
and supports
The Planter"
contrihute to Fund, and the Govt'rnrnent
the yield of certain taxes to the same purpose. The
Agent has also thp power of cancelling the IndenturE>
in case the Employer ill-lU'es his work-peoph', or
abuses his powl'rs. In 1871 thE' number of Indian
Coolies waH nearly 10,000. Free rations, clothes and
lodgings have to be prodded by tlH' Employer, accord-
ing to a scale laid down by the GOH'rnl1lent. Ration:;;
156
EI:iSAYS ON I:l"DIAN ECONOMICS.
al'P stopped after the Immigrant has been for some
time on the IHland, and the Agent is satisfied that
he can easily procure within his earnings his own
In this case, ltlQlley wages are lJaid to the
J The usual mtp of wagps is one I:-\hilling
a day for each adult and nine-pence for a
Fernalp adult labourer. There are six working days in
the week, and tile homs of work are nine per day.
t:lpecial armngelnfnts for '" ork are permitted
with the sanetion of the Agent. The laws It).,'1linst
absence and desertion are, as in the other ColoniPR,
sp\'ere, and strictly enforced. In case of sicknt'ss,
.\redica I ()ffieers of GOI'ernment attpnd upon the ,ick
perSOll and lnok to his wants. Out of the whole nU1l1-
hpj' of Indian ('nolies in thp ('olony in 1871, about fifty
1'('1' e('nt. i.e., 4,608, wen' illdputnred Labourprs, anrl
worked on eightY-iipven E.;t:lteso After the indentur('d
tpnll of fi\"e is O\opl'. tl,p Indian Coolie is free to
follow any ("ailing lIe lik .. ,. A few hecome Shop-
keppen;, hut lJ1all), continue thpir Plllployment free
lall.lllrers on the l<:states. After tPll yearR' residencp,
the Immigrant hecolJ1Ps pntitl .. d to a Frep Pas8Hge,
",hieh Iw may cOlllmute hy flceel'ting a Grant of tf'n
Anes of Crown Land. Ont of 2.140. who became
<"ntitled to a retnrn pllssag"p in 1872, 925 rt'tnrned to
Ill<lia, but 1,215 l'oIl1Hl1ltf'rl their privilpge, and settled
permaupntly in Jamaica as Residpnts. ep to 1871, as
many a,: ]-1,400 Indinn Coolies enme to Jltmaica, and
11WIA:'i FOHEIGl' E\II\;I\1\.T!Ol\. 157
only ahout 2,773 returned during the period.
About 925 Coolie" returned to) Tnelia in PliO, and they
carried with them SaYing' p,ti mated at 17.000 Dollars.
1 a labourer IJPrlnllnently di,abled or
during the term of hi, Im!pntll!'e, fn'e Heturn Passagt'
is gi\'en to him. TIIP conditio)]o of ellll'loylllPnt are
thus. on the wllole, ,pry ,;atisfactory. Bptwppn 1860
Rll(! 1877, a period of ',,'Pllkt'n year", about 16,000
Coolips have bePII imported, sixty per cpnt. :'IInle", and
forty per cent. Females. (Iut of tbe wllole nmlllwf.
1,952 have returned d nri the same period, am!
12,600 in the Colony ill I8ii, and worked on 103
Plantatiom. The total 1I1111Lber of Indians In thp
(,olony in 1892 was l-!,OOO. of whom 4,100 In'!'e work-
ing under amI I U,UOO had complptPlj tlleir
ten years, and were working as Free Labourers. Therf"
were 667 Indian Depositors ill the Saving,; Banb, and
the all1011l1t to their credit was 14,054 Dollars, against
145 Ilf'l'",itors who had ](,,758 Dollars ill 1871.
Among tIl<' new arrivals in 1892 was one Chandra
Kumnri, who claimed to lw of the Jung Bahadur
Family, and she stated that she had run away with
one of the Palace sel'Yants. About 450 Coolies returned
to India in 1892, and hrOllght with them 1,748
worth of cash, and 500 worth of Jewellery.
NATAL.
Natal is a tract on the Coast of Africa,
200 miles long and 100 miles broad, with a total
158 0)1 IKI>IA:'i
IIrea of 1 i .000 ,quare mileg. There lire three
or Strips; t1.f' Strip, a hout 15 miles hroad.
is snb-Tropical, and SllqiU'ClIll', Coffee, and Indigo
are grown therf' larwly, also xllliberry,
Olives, Oats, Heims and Potatoe,. :\iaize is, how-
f'ver, the chif'f gra in el"op. The second Zone i>
more Temperatp, lWeI Cereals grow therf'. The
third Zone is hilly, and on its "estern f:lide the
of mountflins rises to 8.000 feet above the level of the
sea. Tbi, portion is lwst fittf'd for plIsturing Sheep
and Cflttle, and j" fl180 slIited for the Growth of Cerf'als
ane! Fruits of Tf'ml'erntf' l/egions. In the Coast Strip
tlte Teml'eratnrp ranges from to 85
0
Fabrt'nheit
in the Summer Keasoll, and from 85 to 70
0
in "inter.
The Tempf'ratnre in til' Centra I Hegion is marl' mild.
From 1842 to 1856, Natal was administered as a
Dependency of the Cape Colony, hut in the latter year
a separate Admini"trfltion Was fOrJn('d. In 1860, tI,('
total population \Va' 1,25,000, out of whom 8,000
were WhitE'S, and of th('s(' last one-third were Dutch
Boers, who oc('upie(l the Territory before t11f' British
iuyaded it, in ] 842. In 1872, the Indian Immigrants
were estimated to he 5.700 adults, and they had all
ant their term of Indent\ll'P. Xearly one-half
of this numb!.'!' WE're employed on and Coffpe
Estates. The other half "pre Tradpl'5, Shopkeepers.
Garrlenen., Fishermen, and Domf'stie f;prvants. SOlllP
of the Coolies had ali'o become Land-IIoldprs them:;elve;;.
INDIAN FOREIGN EMWHATION. 159
and cultinltect and :\laize. Some 400
Indians had gone further west to their fortunes
in the diamond fi",l<h; of the Tramvaal. Ordinary work-
men get 1.58. 'l month, ,kill('rl workmen earn from
308. to :2. ()ne Indian earned a,.; much as .'4
a month. On the Hailway, Indian Coolies get
208. to 308. a month. In all ca,.;e,.; rations are given
in addition to money wag"'s. Abollt 6,445 Indians
were imported as Coolies in Natal lip to 1866. Tlw
children of the Coolies lil'e and thrive ]wtter in Natal
than in India. The death rate is lower, and tlw
genE'ral state of health is hetter. The Coolies huild
their own houses out of materials supplied by tllt'ir
Employers, and a small garden grounds are atta..:hed to
the housef; in which Tohacco is grown. There
four Sehool, for Coolie ehildrell, which are aided hy
Government Grant,. In reeent years wry few
Coolies go to X"tal nnder Indentures. TIlt' gene-
ral Law of Master anel Servant is found to he f;uflicient-
ly protecti\'e of thpir interests. The percentage of
"romen iR low, Males heing pel' cent.
against thirty-three per cent. Ff'ITmles. There were
23 I Indian Coolie Depositors i 1\ tllf' Savini!'s Bank
in 1871, who had deposited :6.000. A large portion
of the Savings has been in \,('"ted in the Colony in
V pgetahle and Tobacco Farms, anll many Coolies earn
their \ivillJ'. as Boat-owners amI Fishermen. After
retiring from the position of labourers, many Indians
1()0
E";SAYS 0'( I:'iOIA:'I ECO:'>OMIC'S.
take nl' Crown land, and grow Sugarcane on their
own fanm. In ISUl, ni; Illany as 3,183 Indian
Immigrants landf'll in tllP Ports of this Colony, and
about iit Tmmigrants returner! to India, bringing
with tllPlll in all 13,387 worth of cash and jewel-
lery. I ndiRll laboUl'prs nl'P now PlIlj)loyed throug-hout
ti,e lell; . .:(11 of the Colony, :lIlel no
arp ma"t' in resppct of them. 'flit' Imlialls introdllcro
III recent years compnl"P
1'1lysi'llll' and genpral hpnlth
"pry f'lI"onrahly III
witll thosp who wprp
fOl"llwrly imported. The Indian population has illcrea,-
(.(] from 10,G25 in 187G to 38,365 in 18U2. 'I'h" birtlls
ill this Community in 1892 were 966, ami the dpatlls
617. Ont. of the total of 38,365 Inrliuns in Xatal,
W('n' free Indians, and were I11f]Pllturpd
Lnhotll"t"I>'. Thrre were nearly HJ,OOO ]\JaIl' adults,
8.500 Fe/lillIe lind abont 11,071 Children.
int.o Xatal fir:;t e0l11111E'nced in [860.
tL"t. elate 50,101 Indian Immigrant' entered
N<Ltal. Out of tll;" total number, 5,172 diE'll, 7,115
returned t,) [mlia, ami left the Colony othf'l'Ivise,
in thirty-two )""'\1".";. Out of 10,150 children born in
the CO]Ul\Y. ahout :!.300 returned to Tnrlia, ahout 2,000
r!it'd, 1111(1 "llInd 700 l .. ft the Colony otherwj,;e. T11l'rp
were 1:.W [lillian )[arriages l"egistt'reci in I8!! l, but no
ta,e of <1;lor('e was institnt'd in the Courts. III 1891,
ahout G-! 1 Immigrants cOlllpleted their indentured term,
and ohtaillt'rl the Certificate of Industrial residenee. A
lNtH.n FOln:wx
161
con.,i.lprahle')]umhr>r of thpin hai'e tnkpn to Farming' :lIld
Garrlplling' Oil thpjr own acC'onnt. TLey are also Haw-
kers. and Fruit-sellen;. :\Iany han'
I .. ft tl", Colony for thi' Tmn",',wl Gold Field,. They
generally form a 1'1'O"I,pron, allll ordprly ,pdi,))] of thp
l'ol'ldtltio!l of X a tal. Th P 1'P lations IlPtweell t hp Em-
I'loy"r, and the }:l<l]>lo.I'PP' art' 1'pportt'(\ to IlP ""1'Y
,ati,C"ctory. Tn tiH' l'1'-('ollntry District", the Indians
han' tlti' i'xe!nsi,,' ,hargp of plonghing, ,tockand llgri-
cllltn!'p pntrn,tpd to tlH'1ll hy till' fill'lllE'1''', and they are
allowed to sell 1'otnto,'" a.ml Vegetahlps, :\Iutton and
.Hilk ill as larg'e 'll1<1ntities as they need, in addition to
t h .. ir wages. Tht'i I' 1 ... l'utation f,)r rcl ia hil i ty and Ind ll"-
try i, thoronghly p,;tahli,;hed, amI witllOut t1lE'1ll tll{'
[!I(lm,try of th .. t'olony could not be carried on. In
til{' i')al'ing,; B<mk 225 Depositors had nenrly Rs. 50,000
to tlwit' l'1'edit, and a few more prosperous Indians
rerllittc>, t l{lll'f'b ,j,OOO to India.
'rhi, !\('{'Ollnt .. xtl'adpd frOiIl the late-t official Re-
l)(llts \\'(llll,l t() slt"I" that the allegedlllisunderstand-
ill" lJet\\'Pf'1l thp "'hit,,,s and tlIP Indiall ,ettIen', of
,..
whiC'h We' 11('<11' ,0 lIlUC]', i,; Ufrp((,llt gr()lrtil. As mig-ht
11<' ('xpecterl, tlll')'p ]Jll1st be, in the nature of thing"
consi(lerable ('onflict of interpst, between the Indian
Traders and th(' WhitE' population, and things apparent-
ly hal'e gone from bad to worse during the last few
y('!Us.
162 ESSAYS ON I:'> III A:'> ECONO:I!lCS.
NONBRITISH COLONIES.
Of the non-British Colonies, Dutch Guiana appears
to attract a large number of Indian Emigrants. Indian
Emigration lIppearR to have eommenced goon after
the Abolition of i-llavery. It was not till 1870, how-
ever, that a Conwntion was made between England
and Holland. and II Dutch Government Agent for
Hnrinam, the Capital of Dutch Guiana, was appointed
at Calcutta. In 1873, 2,448 Emigrants were imported
into Colony. In 1874, 1,405 Coolies were imported.
In December 1875, thp)'f' Wf'rp about 3,000 Indian
Coolies in this Colony, During the last four years for
which information available about 3,200 Indian
Coolies WE're dE'spatcited from Calcntta t.o this Colony,
The Inrlentnre term is for five years, the working year
being of 313 and the minimum hours for work
are 5e\'en honl's in the fields, lind ten honrs in Build-
ing work, The minimulII rate of wages is twenty-fivp
Cents for )Ial,> fvlults ami sixteen Cents fOl' Females
ami l'hildrt'n. Ration,; are prodded on a fil{ed scalf' for
three lllOn t fI rter arri val; prol'ision for free lodg-ing
and lnP(\ieal relief i, also enforced, and free Return
Passa"e call he claimed at the end of five vears. In
,., J
1891 about .570 Coolies rt'tnrm'd to India hringillg with
tllem aggregate i-lavings of the value of Rs. 81,461. In
1889, the Dumber returned was ,'>87, and they
hrought with them aggregate i-\lll'ings of the valnE'
Ik 1,10,000.
INPIA!Il FOI!EIG!Il Dill; ILlTIO'I/.
163
The Colony of French Guiana al,;o import,; [ndian
Coolies, so also do the French IRlands of Uuadeloupe
ami JlartiniYl1e, but detailed information about these
settlements is not availahl... The only Frt'nch Colony
about which information available is the island
of Rennion, which lies 90 miles to the of
Mauritius. The Island is 40 miles long and 27
hrood. Cotton, Coffee, Cloves, and r5ugarcane are the
chief products of th .. Island. In 1861, th .. numb .. r of
Indian Immigrants was about .J,O,OOO, of whom 33,000,
weI''' adult 4,300 adult Females and 2,000
Children. In 1863, the nUllIlwr ofIndian Hettlers had
risen to .J,6A 11. The l:mployers have to supply frpe
rations. clothing, lodging, and medicines, and pay besides
Rs .. 1 a month a" wage" to each adult MIlle j Rs. 3 to
each Female, and R,;. 2 to each Child. After complet-
ing fhe year,;, Free Passage is allowed hack to India.
The ('ooli .. EmigTant, are well off, and some own
Holding" and Gardens of their own, and others manflge
Hho}Js. The working honrs are nine and II half per
day. Tn n'eent years Emigration from Hrit.ish Indian
POlts has hppn stoppel] on flccount of complaints about
mismanagement and abuse of powers. A few Coolies
still emigrate from the French port of Pondicherry.
Negotiations have been opened hy the French Govern-
ment with the Go\'ernment of India to flllow the
resumption of Coolie Emigration from the British Ports
to this Island, and )Ir. :MacKenzie WflS by the
1 G-l O:'i' l:'ifllAN ('0:-;0:'11('8,
GOH'n1ment of India t() armllg'e the 011 wllidl
thi, wm'ession could hI' gl'antpd with
CEYLON,
Nparer home, the Island of Ceylon attnl(:b a ('011-
body of Indian l'uolil" f!'OlII tht' :'lad I'll'
As Ill;.wy a, i;i.OOO l"IIYe
1'0rt, for ('pylon pach year. Thl'Pp-fonrths of thPl1i
retmn back to India, IIm\ the I't'st ,b,y l'pl'lllHIlPntly
in (,pylon. It lllls been pstilllatpd that hetwpPIl 1843
:md 18ui, nellrly fourteen lind it lullf Lakb of
Irent to Ceylon, out of wholll t'ight and one-thin\
I.akbs returned to India, TllP H'st l'PllIllinp(] in thp
l,laud as permanent :-\pttll'I'>'. 011t of the total popu-
lation of Ceylon, estilJlatp(\ in 18i I at tll't'llty-fo11f
Lakhs, as Dlllny as six I.ak"" Ill' 1I1'l'llty-fhe Ill'1' (,PIlt.,
\l'pre Indian Conlip>" amI ot lwl'f' in tlwt
I,land during tllp prP\illll" forty ),""1'>" 'flIP
:-\ingapoor, l'P1Htng. alld :\lIlIIlC(,1I 11/""
attl'llet II ('on,iderahle nmn!wl' of from [lillia,
Ahout 40,000 Indiau, an' I' 0111 III in theRe
Pll11'\oyf'(\ dlietly m< agri"lIltnnd luhoUl'f'l':;. though II
('on,iderable numher of thPlll also follow ot/t"l' I'tll'Huit"
T),is l'olnl'htps our I'Pli('1\' of the Hl'iti,h. Frpll(')"
awl Duteh ('oloui"" IIml I'o"e",iolls to ",i,icli. cilll'ill,.:
tlw IJI'"t year, awl lIIol't'. tl,e "111'1'1", iaho\ll' "I'
it will hp S/'/'II t/tat "'oI'Pi;,:u EII,i,:':Tilti,,1I
!rl hlilia H Iill'!.!'t--' and IIlo . ..;t iInporiit1lt
FOHEH;:-;
165
interest. As the of tIle past fifty years of pro-
teded Emigration, Ol:i many as 12,00,000 of people are
to be fonnd scattered thronghout these
The popularity of Foreign Elfligration is evidenced by
the following filets which can be gathered from the
1{eporb :---(1) The 1I\1l11ber of Emigrants hal' been
:iteadily increasing. (2) The proportion of Women to
:'lIen is also more favourable in recent years than it
was in the first half of this period of fifty years, 1842-
1892. (3) The number of those who return back to
Illdia haH always been smaller than thoRe who left each
year. (4) Among those who return to Inelia, II good
lIIall), re-Emigrate with their families. (.5) Of those
who go out of India as Indentured Labourers under
eontrad. nearly one half settIp in these Colonie, as Free
Lahourers. (6) Of those who HO settle, a small propor-
tion acquire land of their own, or become traders, or
pursue otilPl' callings, indicative of their attainment of
a higher social statns. (7) Notwithstanding t.lle se,-erity
of the Jaws against desprtion and absence from work,
the Indian Coolies thrive remarkably well, :md acquire
habit.., of thrift and indepenuenee for wldch they are
not much noted dllrino" their residence in India.
,.,
(8)
The Wages earned are from two to tlnee time,.: t.hose
obtained in India, and the climate appears generally to
:\0Tee with the Indian Settlers Rnd their
,.,
(9)
Their g"eneral prosperity is fully attpstpd to by the
large remittances tl!Py make to this Conntry, allcl the
166 0:'1 INDIAN ECONOMICS.
::;1wings t1wy brillg with them when they return, as
aha by the increa,p of their Deposit accounts in the
local Saving" Bank. Of com,e, there are difficulties
and obstrudion" in the way. "Without a strict enforce-
mE'nt of the Protection Laws in their intere"t by thp
Gowrnment of Inrli .I, the Coolie Emigrants wonld not
he able to hol,1 thi'ir OWII agailbt the greed of their
til!' Planter", who "\,,' not generally noted
for their humanity. The :\Iilgi,;hney and the GOI'pr1l-
mPI.t machinery in Colonies, e)ltil'l'lr
in the handH of the White popullitioll, all' not
,"el'y impartial in tlleir trt'atlllent of tIll' Indian
f:\ettlers, and there not much scope allowed for
the indeppnclent growth of the Coloured
Notwithstanding thl',t' t hl'1'P ean be no
donbt that thp system "f Protected has, on
the whole, hppn w'ry henefieial, and tlmt it will, in
of tilllP, It'ad to further dpI"elol'mpnts in tht'
interest. of tht' Indian :-;.,ttleJ's in tllo,e Colonies, at.
least, whp!'e, aH in Trinidad. :\luuritiu8 amI
Bl'iti,h Gniana, the Indians aln,"ly n
com;idemb!e nrol'ortion of tilt' popnlatioll.
The most hopeful feature of this stream of For!'ign
Emigration is repre,,!'uted by the fill't that the Higher
Castes of Hindus ol:en)1): no RJIlall place among tllos!'
who emigrate. The Emigration Report for 1889
showt'd tlmt, ant of 11,000 Emigrants who It'ft tilt'
FOHEIGX 167
Port of Calcutta in that )"par, 1,315 were Brahmins
and men of the Higher Castes, 3,356 wprp Agricul-
turists, 958 Artizanl', and tlH' Low Caste Emigrants
werr 4,152. "'hp Hindus ill all made up nearly
while tlw were 1,154 and the
Christians 15. Thl' Elnigratioll Report for J 890 shows
that, out of some 13,O()0 persons \\'110 lE'ft the Calcutta
Port in tllllt yt'ar, as lllallY as 1,234, nr ten per cent.,
wpre Brahmins anrl men of the Higher Castes, about
4,100 were Agl'i('nlturist,;, about 800 were Artizans
and the Low Castp Emigrants were 5,200, in all. The
Hindu Emigrant, werE' 11,345, while thp .I\Iussalmans
were :,623, anc! the Christians 89. Similarly, out of
Ilparly 16,000 Emigrants who left Calcutta in 1891,
l,liO were Hralllnin,; anc! men of the Higher CastE's,
6.000 were Agricnltlll'i,;ts, Hnd about 900 Al'tizans,
while the Low Cilste Emigrants were 6,200. The
Hindu Emigrants were in Illl 14,000; the l\'Iussahnans
WE're 1,558 and Chri"tians nine. This featllrp of Hindu
Emigration is thp most hopeful, speing that it is Dot
the Low Castps alone who E'migratE'. Out of nearly
4i,OOO people who emigratE'd fl'om the Port of('alcntta
during tlw three 1889 to 1891, about plp\'el\
IlPl' cent. were anc! eighty nine pE'r
<'E'ut. were Hindus; anc! out of this eighty-nine per
('.'nt. Ie:;,; than forty-five per cent. were Low
1'E'ople, and the rest wert> Arti7.llnl', Agril'ulturi;<ts
and Brahmins and men of thp Higher l'ai'tes.
168 E"SAYS 0:>0 1:>OlllA:>O l(( :-'Oll(!-'.
It only remains now for JIIP to iII/lie-litE' hriefly the
lines on wliiclt lih nnd!'r the
auspices of wliiC'h w!' lIIeet Iwl'!' to-day, t'l\1l lI\akP
themselves pradil'ally In ,'ollllpetion with
twelve Lakhs of people in For!'ign I)arts, if
peopl.. in Bombay, or :\Iaclra,. or ('ale-utta would
venture to go ont of tllt'ir t!'fll'k. tI,ey ('onlrl
easily !'stablish thriling AgPIH'iPS in nil tl,psp teD 01'
fifteen Colonies, whel'!' Rlleil II large numh .. r of Indians
are settled, and are presumably \\'111 off. The Bombay
-'1i1l Owne!'s, fol' instanee, ('ould not find a heth!' mar-
ket for their Native made cloth than in the outlying
possessions. The EmigTntion hn,ill!'ss is one whi"h
Nati\'e Shippers C'onld w .. 11 undel'take with aril'lwtll'(rl'.
especially with .\Ianritius and Xlltal on th!' Afrielln
It sbould he tl,p hll"illp:<" of Association" likP
these to obtain the latpst inforlTlution from, nnd kPf'P
up communication with, th!'se (listant Rettlem!'nt", The
School-master, the Doctor IlneJ tll!' T.RlIT!'r, the Arti-
zans of all and p\'t'Jl the of dif'f"rPllt
"Sects, have here a f:wonrabl" fi!'lrl for tl,pir
olwrations and eJlterprizE' among peoplE' who are thpir
kith and skin, and on whom sympathy would IlP\'P!'
h!' wasted. Thp Goypl'llmpllt of the Queen-Empr""
extends its common l'rotf'C\ion to'us lind to thE'm. lind
the Government of India is most conscientiouslyalivp
to its duty of IJl'ot!'cting' the intE'r!'sts of Indian
Spttlp},s, If we eould ,pnd ont om' young lllPll to
1'0"1>1.\:'1" FOIlEHiN DIWHATlON.
169
these Possessions of the Crown, tlley will surely be able
to earn their Iil'ing, and do a great dt'al of practical
good. A little organization and some enterprize are
alone needed for utilizing tliis Y<lst force which lie"
scattered about in distant Possession:'. It is with a
view to rollSt' interest in the wp!fan'> of tilese ppople,
and enable us to do our duty by tllPlll, th>lt I took up
this subject for this year's COnfpl'PIlcP. lind I "hall he
amply rpwanlt'd, if among those who hear mp, the
Merchants, .'\I:ulUfaeiurers, Traders, and Hel'rpsenta-
tives of diflprent Provinct's, anyone or more feels
himself mOl'eel by the spirit of enterprize and sympa-
thy, and is lell in const''1ut'nce to ellltimte hetter rt'la-
tiolls of Tradf' and Industry with the,t' h\,t'II'e Lakbs of
ppoplp t'.<tabli,hed in Foreign Pllrts .
. .

I
n.
IRON INDUSTRY-PIONE.ER
A'-TEMPTS.*
".111
HA YE in my E,say on 11l(lian Politil';ll El'OIlOIIIY
endea\'oured to lay dowu 11 ft'1V general principles
which shonld reg'ulnte the adioll of tht' :'-itatt., in
re'pect of the delPlol'mt'nt (\f Industrial EnterprisE' in
India. J 011 tht' present occnsion to
these principles hy an historieal re\'iew of the efforts
made to devt'lop till" production of a particular Indian
Product, which i" do"t'ly assoeiated with the rt'\'i\'al of
Indian Jlannfactnrpf'. and which may well he descrihpd
as typifying- the HesoUl'ces of "'ealth, on whieh our
fnture prosperity mainly depends. The lti"tory of th"
successive attempts made by Privnte and
Ageneie" to del'elop thl' Tron I lldw,try III India
has a mournful and yet it j" full of in-
strnction. As Captain Tow\1;<pnd of tllP Urdnance
Department has obsened in his work on the !\lineral
"'ealth of India, nothing strikeR tlle ;;trangpr who
studie,; Indian EconolllY so mnch aH the contrast
between the bounty of r\ature and thE' 1'0Yerty of
Man in the matter of Iron Elldowpd
* Read at the Illdll"tria1 COllference. POOIJ". J8fl2.
mox ATTEm'TS. 171
more richly in I['on 0['(' than allllf)'t, any otll!'r country
in the world, India has in a COIllIlIt>l"cinl ,,,pmw, no Iron
at all. There are puly forty-two Iron and
in thp Couutry, working' chipfly on
Forf'ign Import" nnd Plll),loying- twC'II'<' tLonsllnd men.
MI'. B:dl. Dpl'uty :--ul'erintendpnt of tllP
::;111'1")', ill hi, work on EconollJic (Jeology, and VI'.
Watt, in his Didionary of Indian Econowic
han' described, tLe (>xtel1t and richness of tll" Iron
ores which oceur ill all formations, in the metalllorphie
roc'ks, semi-nwbullorl'llic or transition roek" in the
('oliglomerate", in tlw roch, in the 1>pccan
trapp, in tJw sanrl-bech, of rivers, and in t hp detrital
orE'S of sub-recent Agp. In resl'pet of tyeographical
cli"trilmtion, there i" ahsolutely not a l'ro\'ince or f"'ell
R large Distriet ill all India, whieh is not fa\'oll\'E'd
with rich Iron ore deposits of one l,inc! 01' another.
and in which therE' ar(> not traces of Iron manufactunc\
by Native down to wry recent times.
The Iron Industry not only "ul'plied all local wants.
but it also enablE'd India to <'x].ort its finishPfI product"
to Foreign Countries. Thp (luality of the mnterilll
turned out had lllso a world-wide fa III !'. The famou;;
Iron Pillar near Delhi, which is at least fifteen hun-
drE'd years old, indicates an alllount of skill in tIlE"
manufacture of 'Wrought Iron, which 1m" llPen tht"
man'el of all who lu\\'e endea"our(>c! to account for it.
!\Ir. Ball admits that it is not many yE'/m since tlle
ESSAYS O:'i' IXDlA1'" ECONmllCS.
production of such a Pillar \\ould have been an Im-
l)Qssibility ill the Faet()ries in tlle world, and
I',en now. there are ,'olnl'arati\t,ly I'ery ft'w Factories
where such a \lIass of lIletal eould be turned out.
Cannons wt'rl" manuti\eturl"d in Assalll of the largest
calihre. Indiall Wootz o}' :-:'tl"pl tItI" materials
out of whi(,11 Dillllll,seus Blades witll a world-wide
I'''pntation wcrc made, ilncl it paid }Jpl'>,ian )[erc/Jallts
ill t!.Me 01(1 times to h,wpl ,til tilt' wily to India to
ohtaill t!.PSI" materials, nm\ export thf'1ll to Asia.
In,liall :-:.t .. el found OIlC" cOIl,sidel'ahl" demand fur ('ut-
lpry PI'Pll in England, This 1II1IllUfal'tnre of nllil
\\'l'ollgLt hOll had reaclled a }'f'rfl'dion lit lpflBt
t \\'n t houslIml lIg'o.
All this is no\\' c1111ng('d. 'I'llI' .:\nti"e FurnaL'P"
all OYeI' the Conlltr)' haw stopped work. TIle Dome;;-
tk :'I[allufactlll'P has been, in IIlo,t out
hy f,)l't'ign am1 (,Olll\,\ .. t" extillction in the
l1<'al' future is tll" fatp witll which it elw'po.
Tid, fate hilS owrt<lkl'll it ('untt'llIl'oraneonsly with
1111 enormons inCl'pllSe in till' IlPllllll1<1 for IrOll \ioo(k
Till' measUI'f' of this inel'pll'e will he g'lltJI!'red from
the faet that in 1888-89 India imported lwal'ly four
million lnlllflretlweight of Iron. worth tim IIll1\ a half
Crores of Hnpeps. The Imports of I-Itt'el were a '1'1nrtef
()f a millioll hundredweight, w"rth thirty-tom Lakhs of
Rlll,ees. Hardware and ('utlery Imports exceeded one
{'rorf' of Rupees, Hllilway PLlllt lIIlt! Stock
rHOX IXfll'l''I'HY-I'IU:-iEEH ATTEMPTS, 1 i 3
worth two lInd a half Cron's of Hupl'p,,;, and :'Ilill "'ol'k
and :'Ila('hiupI,}, two and ollp-thinl Crorp,.; of II tqwP";.
'II'hile <Ton'rHllleut Imports (''11111' to olle CI'01'f', lit all.
Ilhout elevpll CI'01't',' worth of Iron Good" wpl'e illl-
l,orted in 1888-89, The Import:< tWf'lIt y :l1!:0,
uurlel' all hellc!;', wel'P ahout two amI a half <..'1'OI'''S
only, and til\' diff .. rPIH'E' het\l' .. pn the two totals fo a
Inrgp extpllt tltP di"l,laeplIIPllt of HOHlP
illIlIufad.u1'P";,
(If ('omst', it is hut lair to nott that, lwsic\e" the
pff .. d" of For .. igll COIll!,etition, tllP eollnpse of the
TrOll Industry has b .. pll brought IIhout hy tIlt' inel'ell"-
ing of Fnpl. Th" Xatin' Furnaces hn\(' nIl
along used ('hareo .. 1 fllP/, and their processes illloIl'p
gnat wIIste of l'Oll'e1' alH\ resources, a,; mueh as fourteen
ton: .. of fuel heing fPljui1'('d to produce one ton of IrOll,
A" II ('ollHeqm'nc\', tit<' l'l'odudion of Iron hy the old
Xnti\'e :'IIetllOds l:llnnot Ilt' contimwd, .. xeept at II ('ost
whieh is prohibitin', of cheal' fuel ]i.,,,
at tbe hottollL of the of any organized attempt
to rt'\'ive the Industry undel' lnodt'l'n conditions, In
Tt'spect, has not bePll c(pmlly 1Il1l11ifieent in
her gifts, "'"bill' thp Iron ore is to he found all oyer tht'
Country, the only cheap fuel wJ.iL'h ('an P1Hlbie
India to C(IlII}ll'tp with England, mUll!'ly, Indian
Coal, is Hot widely di"trihutf'd, but in t lit' region
wl,t'l'e it. is founel, tilE' l'pSOUrt:ps of India arp by no
means stintpd or 1'001', The Con l-benring al't'R i,;
li.1 ESSAYS ON ECO;XO:\IJCS.
('stimated to t'xceed thirty-fi,'e thousand s(luare miles.
The regions of tIlt' Wnrdha-Uodavari Yalleys, tlw
Yn lIeys of the f'oallt' amI its Trihutaries, and the Yalley,
Df the Damuda IInrl ib Trihutaries, and the
Hange of till' Yindbya nnd thp Hilllnln,}'a .!\Iountain;
rf'present the ('0,11 Hf'gion of India, and thf'se Coal
r2sonrces, thanks to the adion of Ci-oVel'llllleut, and the
Railway ('olllpanif's. have heen utilized. It
wa,; pstimated in I8i9-80 in Official that ont
.)f a total ('oll,;ullIption of ,Ome one nnd a half )Iilliun
tons, Olle ,'[ill ion ton, werf' raised in Inrlia. :mcl ahout
flYe Lakh,; of ton,; "'f'rp imported. During till' la,;t
fourtepll )"f'ars thf' COllSl1lt1l'tion and Hom(' production
hayp 1H';lriy (\ ouhl ('11. )[ore than two )[i1lion ton, of
Indian ('oal \\crc prodlleed :m(1 ('onsmned in India,
allel the Foreig'n Irnport> ,w('rp about f'ig'ht or nine
Lakhs of ton, in 1888-89. Hp"idf'f< the com'enil'lIt
Yicinity of cheap FneL another e'lually e,;,;ential reqni.,ite
f()}' the successful mnnllfaetnre of Tron is, ahunaanee of
Lime-,tone to Rf'r,",' 'af< Flux, and of Fir(> ('lay for the
Furnace,. This l'eSOlll'ee g'f'nf'mlly ae(,Olnpanies Coal
F<lrmation". At least, thi, has \w(>n the case In
In,lia. The need of proximity to :"ea or Hailway,
and ahundance of Coal and Lime-,tone. limit thr
pn8<ihilitif's of Hncc('ssful Indian :\[anllfaetnre of
Iron to a few favoured )[1'. Ball with
"OIllP hesitation exprf'ssed his ol'illion as follows:-
By adopting illll'TO"f'd l'1'oee'81'8 of manufadllre in
(HON I:'-D[bTRY-PIO:'-EEH ATTEMPTS. 17 Ii
the Raniganj Field, Iron and Steel of lligh (juality
might be manufactured uuder proper mallagelllent
at a probablt' cost whieh would admit of their
underselling the Iron ill the Bellgal
\\'ith improved commnnieatiom', this same rt'sult
may be l'rt'dicated of the PHIHmow Field ill the
Hajaribag Distrid. Thl' Chanda field with illljlrowd
of reduction will be in a position to supply
the Central PrO\inces and Bombay with Iron at all
average rate lower than that paid for Engli,h TrOll,
and thi" remark holrls true of some of the lo('alitie': in
the Narbada Yalley and in Upper Assam. A, regardR
the reHt of India, there does not appear any solid
ground of hope, under existing' conditions, of manufac-
turing cheap Iron, which will eompete ill price and
quality with the English imported artie II'. Captain
Townsend is e(jlmlly, or if morp,
iug in his forecast. According to him tIle Hanigflnj
.Field all the HuxiliHry Hdvantagl''', though
its Iron ore is not of the best. The Wanlhn Valley,
in the proximity of the "'arora Coal :Uines has Hupe-
rior Iron ore, but its Coal supply i" not !'ljllH lIy good.
He mentions the Hazaribag Fit'ld HS in t'vt'ry way
eligible, as its Coal is richer than Ranigrmj and
Warora. The 1:louthel'll Indian Iron Field near Salem
is the richl'st in all India, and though it dol'S not
enjoy the advantage of Coal in the yjeinity,
Captain Townsend thinkH tlJat this difficulty not
JiG
E,.;SAYS IJ:\ IXl>IAN ECOXO,\IlC";.
if the is limitr'd til
thp higher of Iron, while the Haniganj and
WanlliR Fields might confine themselves with ac!'iln-
tag!' to tIlt> and infPrinr 1\11'. HHII
al,o snggests, that when thPre art' extensi I'e jnnglp".
the nbselll'e of ConI :\'lineR dol's not matter much,
tllP unrestmined annllnl jungle-fires consullle n much
grpater alllount of timber than 11Il)' number of ('11111'-
coal Hnrlwrs cOllhl do, ami with a j'J(licions system' of
Forp"t Conservanry, it "hOIlII\ he l'ossihlt' to allow
::-;nti,e }'nrnares near such jungl"s. Sir Georg'e J\Ioll's-
worth, writing'in 1882, gaw' it m' his opinion" thHt
('han'onl-made Iron willnere!' bp able to (,Ollirete with
English IrOll, hut It well-organizpd sy;;tpm of forest Con-
"t'nan,'.\' ought to be ablp to ,eemp Charcoal Fuel
lit a low price for sm('lting pnrp0i'es, aud within
e)o,p proximity to the Iron Works." Such a ComlE'r-
\'aIH'Y i, not easy to atHl tllPre 110
l'fI)'l'eet of help in thi" IH'8Llramp. Dr. Watt, aftpr
a eal'pf'lJ pxaminatioll of all 'Ol1l'ee,. Rrriw,j
lit the coneill"ioll tllat the Bengal and .TahalJlore allli
t '!Janda Fi('I,I" otl','!', IInder t'xistill!,! ,ircumstall((,>.
thp only l'o"ihlp o!,pning for lllrg" 1"')11 "orb.
PI'. "'lItt. in hi, Dictionary, qllOtp, t II('
"I' 1111 f Iftj('iaJ EXI'f'rt, from which it appear" tha!'t],E'
pri ... of I ron is fifty llPr ('ent. hy of
and Lnnding t'llIlr!,!p,., ahont On!' lIlile of iroll
Hllil"':I\' :-;I"PI'l'r, "o.-tin!.! in Englrmrl .2,000 lind ill.
II!V::; ATTDIPTS. 177
India'Ik 31.000. TLlt' i,. duE' to 1,000
chargp for Freig'lIt lllld Landing. Tlte railway ('urriage
eharg'e and dnring' rE'(,tmt 'years the healS los;; by
Exchangp rai,p fully fifty ppf CE'ut.
It 11118 b.-pn that about on!' h undrpd
and fifty worth of IrOIl has heen illll'ortp(\ into,
l1Jdia durillg th(' III"t thirty and fifty ('rorps
of Rul't'ps at !mn> thu" hE'en paid fot' Fr<'ight
and Landing' l'hargps alollf'. which would IUln' bE'en
"a\'OO if thp IHld IJPPlI herE-. Jfr.
Ball oh"en'p", thllt if. the liO\Pl'llInent ha(1 started the
Illanufaetnre of 11'011 011 tUI pxtended SCII1E' at the
time of the first opl'ning of tlie Railways, great be-
nefits wonld han' ileenlprl to thp Stah'. If the
State was jllstifipC\ iii lI111lpl'taking the eonstrndion
of its 011'1\ Raihmy", tliere nothing'
with prilll'iple III its unril'ltllking ttlP manufa('ture
of its own Tnlll IIny 1II0!'P than ill its manufadurf' of
Salt or (ll'inlll. The effe<'t of its f,\('to-
f,)1' J rOil m'mllfaefnn" throughout India would
have, in :\11'. opinion, enahl!'(1 the f'tate to
kppp \'a,t SUIIlS of ilionI')' ill cirl'nlation. and would
have givpn l'llIploylllt'nt to large lllulllwr, of l'eople
who now I'Psort to A,g'ricnlture as their only remmeE'.
This golden opportnnity WllS' allowed to a!lfl we
find olll'selveslu the llnomalous situation that aftN one
hundred and fifty }'I'ars of Hritish Hull', tit" Iron
feSOllfCpS of Indin rellllllll unr\f'H>lopPll, and the
178 ESSA VS 0:-; INDIAN ECONOMICS.
Country pays about ten Crores of Rupees yearly for
its Iron Supply, while the old race of Iron Smeltel's
find their occupation gOll'.
It be admitted at the same lime, that the
Governm'nt of India has not been altogether obliviou.'
of its duties in thi;; ('onnet'iion. The Government,
through its Geologic})l Surwy Department has carp-
fully, and at r-on,iderable expense, surveyed the
Regions whieh abound in Iron Ores. The mIne of
thi8 sen ice C1I II ne"")" he oH'reRtimated. Next t,)
these ol'pmtion", it has also from time to
time, spent con"iderable "urn" on experimental trill!"
it has subsidized Compllnie,; to whom concessions more
or less favourable ha,"e heen granted, and lastly, it has
directed its mnous Departments to obtain tlwir
suppli('s from Local souJ'ces, anll thus hplped the efforts
of the8e COlnl'lInies, T!wre is thus no question of
principle in\'olwd in the IlIl1ttfr. Thp l'rineiplp of
State-help and guidance in piollepring new enteJ'l'rixe
has thus heeu accepted Ilml actEd upon hy the
Gowrnml"ut herl". The only fault one can lay at it,;
door, is tllat this Policy haR bl"en followe<l. with ha!f-
heartl"dness and of purposl", the J'1"8U!t of
which has heen thllt as a rule most of the priyat
p
attempts madl" on \"al'iotls occasions havp pro\"ed more
or 11"8s "I"n"ing only to discourage all elltf']'-
prize in t.J,is dirl"ctiolJ.
The objel't of paper i, to give
Mistory
of and to thl' call1l'' or
why they tmnl'd out fail,,!'p, :-1. I shall first take
up the hon Field. Tn 182 j :\lr. Heath ohtain-
"Ii a GOH'rnment advanel' for the purpose, and he
'll('cl'edNI in 1833 in a Company eaIJed the
Indian Iron, and Chrome Company. The Lease-
hold rights of Company extended OH'r four
Districts of An'ot, ('oimbato!'l', :\lalahar, and
South Canara, and it .. ,tahlisheu tllrl'l' at
Porto Novo in Arl'ot, at Hen)ore in :\laI abar,
and at Palampetti Ilf'ar Salem. ThO' Steel manufac-
tured by tI,i, Company W:l' very thought of,
and it estahlisheo a rlpl""! at Chl'lsea, ihrough which
the Steel WII" tested and pa"sed befoTI' heing sold.
The business of 'Ir. Hellt}"s Company was afh'r fiome
years taken on'r hy another COlllpany, who continned
to work the Porto )\0\'0 and Hf>ypore Factories till
18;i9, The Company had in days great difficul-
ties to en("ounter. They ('onsumed Charcoal FUl'l ,
whil'h had to be brought from It of more tlmn
twenty-five miles, and thl' :Flllx was
and hoth )<'lIel and Flux had to he taken to long
Xotll'ithstanding' these difficulties, the Pig
I ron produced was pronounced by Sheffield Iron
Workers to he superior to any produced in England.
and ::;weden, alld it commanded a good price, 6 lOs.
pel' ton, in London for conwr"ion into and two
180 E";;;.\YS UX lXlllAX K('OXu)lICS.
Bridg-ps, the Britannia Tubular 1I1Id .'lenai Bridge>
were built with this 1Il1lt!l"iill. -:\ext to the diffieul-
tip,; a1->out Fupl ilud Carriagp, tl, ... rp were ill tbo,(>
IIbo11t Khipl'ing. Tbe Furnaces
8eldom at work for more than four months, and
ill'clIIllulllt ... d. Thp hold on the English l\larket ('ould
not be retained by renson of tbi, irregularity of supply
and the CORt of mallagellleut illl'l'ellSecl proportionatel)'
to HII' stoppages. A, n eonselluencl' of th",,.
drawbacks, the Coml'nny ne''''r declared a dhidelili.
and the Irolllllonger', )lropheey that India
would ultimately become one of the larg'est Foun' ... ,
from whl'ncl' Sheffield would draw b"r supply of Haw
l\Iatf'rials, renmined unfulfilhd. 1'1,,, Compnny al'l,eal"
to hal'e Htopped work flbout 1860-61, so fill' IU' tlu'
Porto No\'o Factory i, conl'l'l'IH'( 1.
2. The Heypore Ffldory of thi, smlH' COllcern wa,
started in 1833, hilt it changl'd fr"(luently.
The Flletory WIIS working in 185i, lind the ('"11
Carriagl' Dl'partI1ll'nt 1'1'0noUllC'f'C1 fal'U\lf1l bl y n POTl t li,'
Iron turned ollt, IIH bf'ing for th"ir
rltimatf'ly, owing chiefly to c1l'fkiency of Fuel lIud tl:e
bad roads, tlw Company llfld to hring woorl Fuel frotll
by RI'<l. Thl' (J"rman (,lIll'loyl'f's If'ft sl'ni('f' ill
185!J, aIHI though improl'Prl weI''' inti'o(ltlC'E'd
in 18() 1 tIll' ... "m;('itation \\'<18 only temporary, ilnrl til ..
Work;. wprp ,.:lIortl) aft,,!, abandoner!. It will llP f'eE'n
from thi, a(,('Ollllt that tl." 'Iuality of the IrOIl turTlE'Ai
I HO:-i ATTDIPTS. 181
ont in every way and t1lf' attempts of
the Com pan)' failed chiefly hy reason of the small-
ness of their capital, wllich did not pf'l'mit of their
ins1lI'ing a l't'gular supply, and the difficulty <Ihout Fuel.
As far as the difficulty about Communication i,
('oncerlled, the last thirty years have dl'eeted grt'at
and this diffi('ulty may almost he ,mid to be
lIlinimizPd. The difficulty about Fuel i, :llso likely
to hI' ovprcorne. Captain Townsend suggpsts that the
,\istance hetween till' :-;ingflreni Coal Field and Salem
i" not s() great that a Light Coal Tramway would
not pay a really larg'f' Firm consllming
of t()ns a clay. lIt'. indeed, cautions any new
f 'ompany flgainst lillliting its ambition to the manu-
faetnre of Pig Iron only. He would ill,j,t npon a
I'pally large IlIHlertaking" !'omplete \litll all the
IIPcpssary Plant on tht' spot, tllf' Pmldl i Fnrna<:p8
thp Holling the :-;tealn HamnJf'I'''. awl all the
other applinncps of fI FirRt Class Factor)' and
1'oUlldI'Y ahle to turn out nllishl'd Ban'. and p\en
tini"hpd :-;tpf'!. Thi" IIwall" a \'pry larg;p llIHiprtaking',
alld as 110 dil'idf'nd can hf' PXj "'('k<l f()r the fin,t
f",w f'x]>prilllental yt'arf<, no ('al'it1lii,f:.; wonhl \'f'ntllrf',
un]pss thp concessions are liberal. lllHi a suhsidy 1'1'0-
lIIi"ed on the plan which helped the Rflil-
way to ohtain their capital.
::I. In 1874 a fresh attf'mpt wa" made to form
a Company in MfHhas to work the Iron or!'s of ('hin-
182 E"SAYS ON 1:>1 ECO:'iO:mcs.
gell'Ut. TIlt' difficnlty in the way of that Company-
wa,. chiefly tllat of ohtninillg Fuel which they expertE'd
to "p,'nrE' from the (Torlamri District. Nothing cainE'
of t he venture, as Hpparpntly. thp necessary cal'it;ll
could not bp sE'cnred, tbough. as far as loml consump-
tion was eon('erned, thpre \,a" all ample field, as morE'
than eightef"n Lak h" of Iron was illl})orterl annually
into Madra,; City alOlIt'.
4. "Ye llt'xt tnrn to the Bpngal l'rpsidency. The
Districts of Heerhll1lJII and Hazarib,\g al1(l Haniganj Hrf>
tlit' ('hief pla"e,: wlwre rieh Iron ore i" found in clo,p
proximity to Coal clf'posib. In Reel'hhlllll. "0 far hack
a'- 1774, one Xati,e TradpL fndra Xarnyan Sharma,
asbd for a (oonct',;,;inll '-"I-pring the Bt'f'rbhum llOlI
and Iw agTec>cl In P't:I- the t hOll,;H!H I Rupees a"
rent. The oft','r W1I,; hut no I"H,;(' was taken
out.
5. In 1 iii :\11';;,,1'" \Inttp amI Farquar and :\Iessr>'.
Summer and Heatly ohtaillPd ('oneei<,ion,;, the former
of the to tllp "'pst of Hnrdwan amI the latlf'r
in part;; of Heerbhllll1 and Pacllett', to produce Iron
and sell it free of Duty. :\J"ttp and Fllnpllll'
undertook to (,list :-;hot and :-;hplb for thp (Tovernmf'llt
at three-fourths of the cost ill t'aknttn of iml'ortpd
goods, J:\h. Farquar obtained tile ('oIlcpssioIl, and f'n-
tered npon the pos,.;ession of his He also
obtained Illl admnce of fifteen thow;am\ Hupees from
GOI-ernment to eomplE'tf' his Fnrnaees. The Factory
ATTEMPTS. 183
wag carried on from 1779 to 1789, in which last year
tbp concession about Gunpowder '" orks was rpsigned,
and the was allowed to expire in 179.1. While
tht' "'orks Were open, :\11'. Farquar', Iron was for
fil"e Rupees a :\laund ten RUJiees a :l\Iaund of
imported Iron in Cakntta.
6. Dr. Oldham was appointed by t be Court of
Directors ill 1854 to inquire into the Iron resolll'ces
of Beerbhull1, and he pronounced an adverse opinion,
ehieRy on the ground of the scanty supply of Economic
Fuel. Hut notwithotandll1g' this pronouncement,
:\Iessrs. :\\nckay alHl Co. of Calcutta st.arted in 1855
the Hperbhum Iron '" orks Company. It was wry
fityourably reported upon in 1856. l\lr. Sowerby in
1858 made an aeh"erse Report, and :\Iessrs. :\lackay and
t'o. replied t.o :\11'. i':lowerby's criticisms. 'flIP)' gtated
that they turned out two tons a day, and they were
able to sell Iron at thirty-seven Rupees a ton. Not-
this fa\'ourahle accollnt the "'ork was
freljllpntly interrnpted, and in 1860, :\Ir. Blanford was
appointed to report upon tll!' Factory. His Report
that, thOllgh tIl(' Factory was carried on at
present at th", cost would be conHidprably
rliminisllt't1, if production was increased by the employ-
IlIent of additional Capital. He also reported that the
p,timated prices were lower than those of imported
[ron and the quality of tIlt' Iron turned out was
mperiol' to that of ordinary English Pig Iron. He also
184
ESSAYS I:>O))LH ECO;\"mIlCS.
stated that the supplies of Iron, Coal, and Flux were
sufficient for works of moderate size, hut not for large
Work;;.
i. Xotwithstanding Rt>port, tlit> \\' orks appear
to lnn'e heen ahandoned, and their place was takell lip
hy Burn and Coo's Fadory, which commenepd
operations in 18i 5, but this new Company soon found
it neeessary to ahandon all idea of enlarg'ing' tIl(' Work"
and ultimately gave t1H'm up. The chief difficulty in
the way of these Beprhlllllll attempts that of Flle1.
and tbis difficulty has sineI' increased. This difficulty
makes it impossible to work the Iron ore" \\'llich are
richer than tho,;e of Ranig'anj, with tht> ,ame ach'alltng'p
as that of the infprior material supplied hy Raniganj,
becauiie of the abull(lalll'p of Coal Fuel in that locality,
8. \\Te nE'xt ('OIllP to the Haniganj Field. TIlt'
Bengal Iron ('Ollll'aJlY was formed in 18i4, and it
continnpd to Imrk till it ,topppd hnsinpss in 18i9. Tht>
Company cOlllmitted the initial error of ,;tarting with
an ill'llfficient ('al,ital of tPll Laklls, Ollt of which it had
to pay a large >'l1m f'H' t.h" land tak{'11 up. ThE' Com-
pany aBk{'d fTOIE'l'lllllE'lit to lwlp tllt-m to rai"e additional
Capital from til<' puhlic 00 Illorlt>rate tpl' III >', but the,e
arraugement,; fpll throng'h, all(! the mOlley had tl) b(;
rai;;e(l on Delwntnre>l at high ratt's of intpre,t. GOI'''rIl-
ment, indet-rl, gave a large order for Ca,;ting,;, bnt owing
to financial difficuHi.es, the work had to 1)(' ,;tol'lwd,
and the men E'mployed WE're thrown ont (If work, aJl(1
IHV:\ 1:\IltXflIY-PIO"EER ATTEMrTS. 18!i
the Shanholder,.; lost tllPir money. The Iron ore worked
was of the he"t <plality, ano the Flnx ano Coal were
conveni!'ntly to hand. many as twelve thomand
and ,e\'en hundred t.ons of Pig I roll were tnrn('d out
by this Coml,any heron it stopped daily
out-turn of twellty was hy a charge of
thirty-seven tons Iron or .. , tll'ent,r-l'en'll ton.' Coke. and
twenty-three tons Lime-stone. the of Pig Iron
being thus twenty-tbree pel' The 1I\'emge ('o,t
was forty Rupees per ton, and it
reduced to thirty-three Rllpi>es. III
might bal'l" lwen
:\[1'. Hall', opinion,
if the Company llHd been I,elpel] tlll'oug], ih; early
financial difficultie,.;, Iron cheflp!'r and hettl'r in quality
than is import .. rl from ahroad would ha\'e lW(,1l tllrned
out. ("(ptain TOWllsf'I](1 ,tatps that the (lIilllrp of this
Company prow's nothing ('xcel't that snel't's;; ill tl,e
is not possihle with small Capital.
9. Three Int.'I", coneei'n. sincp eilll"d the
Bamkor \"ken lip hy Govt'rnlllt'nt. fmd
IJlaced lInder thf' of Ritter YOIl 8ehwartz.
One Blast F\IJ'uacf' \\"",; in 1884. illld produced
down to 188!) more thall thirty tons. A
,;eeond Blast Furnarf' lu" Iwen sin('e added. nm] nrrllllge-
mellts made to smplt frow fifteell thollslIlld to twenty
thousand tall" fI j'Pllr. Pipes. :;;1f'Pppr,;, Hri(]ge Pilpg,
Ornamental Work, anrl Railway Axle Boxes. and Agri-
cultmal ImplewentF, are marie in llirge qnantities l,ere.
Till' meces;; of thi,; \York llas rlt'1lI01l,traterl tIle fact
186
ESSAY'; 0:'1 1:'1 III.\'i
that Iron could hi:' snwltNI in 1 "'W , 'Illalltiti .. , on
Enrol'ean ill India.
10. Since 1889, thesE' \\'orb hal'e heen agaill iliad ..
OWl' to a X ew Company hy the GOI'erlllnE'nt of [mlin.
11. III tllE' JahalporE' OlW ()lpllE'rt,. Iw,
obtainpd a l'onef'ssion, imn iR making eXl'erilllf'nts lIitl,
a yiew to the production of l'liarl'oal Iroll hy tlif' lH;P of
European metho(k Thl' l' III aria ('ollip\'." ha, hpPll rp-
("('ntly opened in this vicillity. <111(1 tilP rieh Iron ()n' 10,
tlit' Xorth-Eastof Jahalpol'f' Irill SOOli hI' takPn in lmml.
12. TIIP :-':arbada Iron awl Coal COlllpany ha,
ohtainp(l a l'OlJ('pssion of a lease of tllP Tf'nnal'kllera ar.d
()marpani {rOil :\Iinl's, tog-ethpr with thp Coal of
;\lopani. TIll' ('ollll'any lias not yl't lIorkHI tIl(> IrOII
:\1inp:-;, thongh the condition,.; of its lease made it obliga-
tory 1ll'Oll tIl(> ('OIllpany to prodncf' firl' thollsaml ton.'
within Ill''' )TiIl",; froIll tIll' time the Railway readlPo
.Taball'orf'. It lnay he 1I0t",l hf're that this ore a],.o j,
Yl'ry rich, ami II :;;w'pell"itlll Bridge 0\'('1" the near
Sag'ar wa,; hllilt so far 11:1I'k '''' 1830, with metal prpl'H-
rpo after Xatil'f' 1Ill'thod" frum this
13. Ti,l' ('hallda Ui"trid. all others in tlil>
riehness of it" I roll Ol't',;. Thpir eonsi"t:; in
tIwir tot a I frpf'c\olll from Govl'rnment
appointed :\l 1". 'I ef's to JIlake an experimental trial of
the hon III 1875 he madp the first trial, butit
did !Jot sncceNl o\\'ing' to tlif' large quantity of Coal
Ashes which prE'If'llted li'lupfaetion. The second triar
wax IX AT'I'Dll'TO'. 18 T
pro\'ed It better "-hill' tlie Iroll ore is of ti,E'
best fluality, tlie "\\'llrora ('oal J" not HJ ,nitnhlp II>'
Raniganj, as the pE'rCeuhlgt' of' ('arbon is amI of
Ashes is unusually large. Captain TOWII,P1IC] lwlip\'f,
that there art' certain superior "I' ('on! ill the
Wardha Yalley, and tliat tliey would !'Jln hI,' t hp 1I'0rk
to be carrit'cl on undt'!' fa I'onra hI e condition"'.
14. In C!'lltrlll India in tIl!' Yalley 1lE'llr
Barwai Station, ColOlw! Kp<ltings I\'ith the
sanetiou of tlie (i-O\'t'rnIOPllt of Jlldia to ,tart all Iroll
Faetory. Colonp! Kpatings '.\'<1:< dpputed h,\' tllt' Secrp-
tary of State to g;o to Sw!'dt'JI. a1l(1 stndy tl,p
tht'rf', and Ii!' engagpd a S\\'Pclisl1 J<:ngilwer named
l\1itllnclar, and brought him OYer with l,ill' to India in
1861. The Fu!:'1 used wn, Charcoal, and the Io'lux \\"1\,.
cOnl"elliently near. A llIast Furnacp, Holling
Charcoal Orells, Calcining werf' all set Ill'. Ilnd
after two alld a half of had hpf'n Epent.
the Go\'ernlllPnt refusf'{\ to inl'lll" fnrther ,'xpenditnre,
and dedillPll to g'iYe t.llp Ilel]! of more Elll'ol'eall hanel"
to .:\Ir. who l'ollseqnent.ly left India in 186,L
and tlw "'orks ("ould find no pnrcha,!'r el'en for fin-
Thousand POtluck
15. In the Punjab the )Oatiu' l{n\e!' of the )OlIlmn
Stat" has inc\lrred consiclerahl!' eXl'!'nditul"e in
at Rinnnr a Factory supplied wit h Europf'an appliances,
and in 1880 the "Works were> o\,,,ned with grpat Eclat
by His Excellency the Yieeroy.
188 E",SAYS 0:'\ \:'\[lIA:"I ECU:'\03IlCS.
Hi. We "hall next tnrn to the History of the
Kalllmao)) r ron :'Ilines. In 1853 th.. Court of Dirvc-
S!'Ilt one John Henwood to report on the IrOIl
and CO!'l'er of Kammaon, but nothing came \)1'
thi,; deputation. ,\fr. Sowerhy at the time.
employed hy t he East India Na i I wa y COlllpany to
eXI,lore til!' l'eSOUrl'''S of tlw l'olllltry ill t'pI,er India.
(Tenpl'al Stmclwy in 18;'i6 frallle(] a Scheme
to ("o"t tift,'pn 11\1(1 thre!'-(l'ulItt'1' Lakhs of Hupee,;. 011
w]li,h it was pXl'ect .. d that six and 11 half llt'r ('('nt.
intf'rpst wonle! he eanlPd hy t hp Illannfa,tnrp ()f
ti,irt!'en hU\I(lred tons of Cast Iron, and tllrpe thousand
DYP hundred tons of "'ronght Iron }>I'r year. )[1'.
Sowl'rby was al'pointt'd hy (iOYt'nlll1t'nt in I B;ii to
t.ah charg'(' of this work. Ahrmt 1111' time, l\
COIllpany was formed whieh took ol'er th!' GOI'ernment
VlT,)rk" at ('n,;t pric(' in 1860. It (lid I/ot work
torily, and Dr. Oldham waH appointpd to rt'port on til"
eamp of thE' f:lilnre. :1Il0 hE' tIll' failure to thf
extl'l\I'agan("f' and in('omlwt(,l1c:r of tIl(> Illen t'1J11'1oYNl.
In I R62 two l'rimte Me"srs, Dayi .. s [md Co.,
and rlllll!llOlld and Co., which had hf'f'n working
lwfOff'. \I'f'rf' llmalgnnlHtf'(1 and clIlled til(' Kammaon
In)\! "'qrk {'ompany. A LicPII>''' Was by Go\"-
erl1l11"lIt. hut two YE'an' hpfore it
an,l ill tllf' I\leanwhile the ('o\lll'anyha,l COIIIP. to g-rief.
-as they I\'t'rp nnahlp to th .. cRpital rPljllirpd.
n:-a,on of tlt ... delay in gnmting' tl,p U(,pn,p.
IH0:> ATTDIPT:;. 189
In 1877 the Goyernuwut again took up tlLp qnp:,tion
of Tron manufactul'f' ill KalLLlLLaOLJ, and spent mOlley
considerably, hut tht>rp \I';\S no ilLLL'OI'pment.
17. The latest attempt in tiLe way of direct Go\'eru-
ment llLanufactme of /"L' illld ,"';hot.
Illarle ut t1LP Co,.;"il'on Fill'tOL'y, and the Piouee)'
reports that it was iu en'r), Wily a sueet'''S, In tIL('
of _'filitar} Defence, the necessity of tiLe
Indian beil)g pro\,idN] with it" own A 1'1 II';
lind Ammunition. is soobvions, tbat it. is not li]';ply to
be' diRpnted. The same justification exists fO\' the
rnannfaeture of tltp Holling Stock and other Materials
likely to bereljuirpd for St.ate Hail way", For eOlllllWL'-
cial SHeee.-S the extem;ion of the \Yorks, so as to 'Illppt
pril'atl" ft.-lLLand, will be ;;oon forcpd 'UpOIL (jon-l'IlIILen!.
. WI' lm\'!' thus passpd in rPliAlI' tIl!- Hi"tOlT of
se\'entpen nttpmpts made hy l'ril'lIte and I;tlltl"
to "tart Imn :\Ianllfactures 011 11 larg<-. ,mil hrief
surwy of prpyjolls Ipild" Ollp to til ...
tlL<lt the fai\ll\'pi' Well" due:-
I. To the "llIa11ne88 of thp Capibd PllLployecl, anc!
thp poverty of the finanl'ial Hp:.;ol1l'cPf' of the Pril'Rte
COJlll'llnip",
2, To the i'eareity find heavy of good Filet
3, To thl' ina('('essihility of some of the l"ilces
cho:.;en, in reRl'eet of Hailway and Sea COIllIllHnic<ltion.
-I, To tlLe oscillations of pnrpose RhoWll by the-
lJo\'l'rnrnent whieh made them impatient of l'e:'lllt".
190
5. To the want of skill IIn!i good lllanagement on
t he part of the persons pmploye!i to eondul't the
EXI,erilllent.
6. To tllP debys l'anserl hy Hp!i Tape, lind the
of (joyernm!'nt to :-illbsidize or (iLlaran-
tpe Interest during the experimental period of tLe
('Imeern. The failmes aTe dill' to ('a usps wbiel, l'an all
ilion' or less Ill' 1'1'oYi!led by proper care and
prurience, and some of them have obviously eeased to
he the obst'leIes t.hey once al'p!'ared to bp, by reason of
improved t'!'a anrl Land communications.
The Pioneer, in SOIll!' of its rpeent j"sues, Ims
in strong terms about the iIliheral eharacter of the
('oncessiom offered in the way of ProspectiH' ami 'lin-
ing Leases. Leases for Short Terllls confined to very small
areas will never answer thp purpose. If the
facture is to b!' earripd on. on a large scale, the Term
must be a long Olle, exeeeding fifty ypars or so. Such
a concession lIlay well he gil'en to Companies which
undertake to rai,e at twenty-five LakJ., of
Rupe!'s of Capital. In t.he of such Companies the
detailed t'un'eying and Prospeeting work must be
completed hy the (i-ol'ernlllent, assoeiating its own
trained ()ffieer wit.h the primt!' Expert. This [Ilan
was to some extent {oil owed with sllccess in the ('a"e
of Gold Wynaad It fell' years ago. Tlw
necessary Capital lwing raised. GoW'rnment
when satisfied of the bOIl.(t tirlA! chanwter and skillell
1110:" 1:"Ill'STHY-rl(I:"EEIl 191
of ['OlI<'Pl'Jl". gnal'antpp a
nllnimnrn inh'rt'st I'Mp rlm'iug thl' trial
on tlw plan and J'l'sorted to
in the ease of Hailway CompalliPR, and (JO\"PrllIuent
rl'"prH' its right to slml'P in the l'ollll'anips'
profits when t1wy PXN'E'li 11 fixl'd miuimlllll.
On tht' ,"t'clll'ity of thl'ir Propprty fllId :\lneltinpI'Y,
Gowrnrnent "ltonlrl l,plp the Company to float its owu
DE'hputnre" II'hpn nee!'s8f1ry, or Il'ml the mOTIf'y itsplf.
The gpt their Limos frf'e of cost,
on ('ondition thllt home ,!itle work is donB within a gi\'ln
pt'riorl. Hoyalti .. ami Finps should 11l' chargp(\
till Ilftpr t hI' Comp<'lll y hf'gins to I'arn a definite
minimum of profits. TIlt' Factorips should also he
gnamntepd and cprtain dl'lfIIllHl for tllPil'
produee at fixed whidl should indude not
only tlIP in England, but Freight,
llllll RailwllY Clml'l!ps. and Insurance and
Exehange. A "t'llIIratt' Department of Commeree and
)Ianllflletnres ean II10np r\p\"Otp to tl,is work
without frl'qnpnt oseillatiolls of purpose. Thp:5e
can only apply to large Conn'rns, wliieh must he limit-
ed to pla('t's Rplpeted hy (fO\"Pl'llIllPnt Experts, llS
possessing all the ad vantages of g-00<1 Ore. ('j,pap Fne}
and Flux, anrl easy Commnni/'ation and Deaf :'\Illrkets.
Hrnaller Concerns, to lw worked with Charcoal Fup1
nPRr dense FOI'PstR in ol1t-of-t he-way Regions, will
j'p{juire Heparate treatment. The Lpssees lIpl"l' may
192
ESSAYS ON 1:; PIA:; E(u:;U)1I(,".
Ita n' a portion of Hesernd For\:'st area handed OI'er
to their eLarge, on eondition of th\:'il' r\:,(juirpd
to rE'plant fourteen tilliE's the area deared ill one yE'Hr,
or the Department lIlay undertake to supply good Fllel
at cheap on the spot. In all \"Ill'jolls Wily>.
GOyernlllPnt llIay wl'll IIPlp titi, lWW U1l
the deyeloplIIE'ut of whieh tlte fndustrial Heliml of
the Country largely depends. Gon'rnment own,
thE' Lands, tliE' :\lines awl tllP Forest". It i" al"o
tile COll'llIner. and thp large,t C'apitali"t alld
Mannfacturer ill the Country. Th"rE' i" no qlw,tioli
of Pl'otectin' Dlltif's hen-. The Xntnral He'olll"ee" are
in nnmeasured almndanep, amI the nntnral lJelllaml j"
illerea,ing el-E'ry day in 'yolnnw and urgent'y.
nizf'(l skill and direction arp the onlynf'ed,
Country, and thes\:' t.ltp Gon'rIllIIE'nt l'OSSP'''\:','
of tlw
or l'an
eommand in a way which lIlahs it their duty to "tpl'
in, ami assist. the developllwnt of I,.)eal Enterl'rh'e. for
whidl the necessary Capital will, 11(' forthcoming ill
thi, Country, if the early rish of sHeh eml'loY!lIent
are reasonahly assured agninst. In the words of Cap-
tain Town,;end. wlwre there j" 110 Primte Enterl'rht'
to interfere with. it is not ollly wi"dolll but a duty for
th{' State to ,tart tilt' rf'([lIired "orh. StatE' lit-l\,
and State Diredion arc l'P([uired in India. when nE'1I'
line,; of Industry are to be open,,![ Ill', and if g'j\'PTI
freely, the expenditure will not only, pay itself, but
will enormously dey\:'lop th\:" 'Wealth of tlte Country.
nl.
INDUSTRIAL CONFERENCE *
I ..
;\ T thE' dE':,irt' of tl,t' l'hnirmHn, and Oil behalf
1:k' of thE' promotpr:' of this Hlovempnt, I
to IW"l'E'ak yom fa mnrll hI .. attE'lltion to a ft'w
mtions on thE' objE'et;; of this ConfE'l'enct', WE' arE'
met here to-day, fol' a purpose which is E'millPlltly
catholic amI acceptahle to Hll. The 1'I'ograIJIIIlP of
the Congre" gatherings a,'owE'dly Political. Here
we esehew altogethel', for the)'" is relllly no
conflict of interests hetwpt'll the Rulprs and thE'
Ruled, who all alike dE'sirp to promote thE'
and Economic Progress of this Country. Tbp ohjpet
of the Social CouferpllcP, similarly, sets till' Hpfol'lllerS
and the Ortho(lox majority in appHrent opposition,
Here, on the Economical platform, ,Ill shades of
opinion, all differenct's of vil>ws on So.:ial, }Jolitical,
and RE'ligiolis subjects, may unite and eo-operatE'.
This i, a point on which it is needlE'ss to dijHtE' much.
Our l,eople in of old set to only
one question, amI nil Ollr \Vorks Oil alld
Science commenct' and eud with thE' Pl'ohlt'Hl of
* Inaugural Adclre" at the til'.t Ind".tl'i,,1 Conference,
Poona, 1800,
13
194
ESSAYS
Deliverance from Evil-which is to be
three-fold-the \\r eaknf"ss and of OUI'
internal Naturp, the Eyils' we suffer from
whether Gods or men, and lastly, the Evils we
by reason of 01\1' Physical Surroundings. People will
not easily agrep as to the method of Deli Yf"ranC'e from
the first set of E"ils- -hence the diYersityof Creeds. In
their advocacy of their oll'n particular Creed, they
will not el'en admit the right of others to cross-ljIJP,;-
tion them about thf'ir Faith, lind they are too often
disposed to deny the existence of any Sin or weakness
when challenged by others. In resped of the Second
class of Evils, diffprent classes of men will necessarily
disagree to some extent, and proposals for co-operation
are not always welcome. In regard to the Third class
of Evil;;, howewl', by the poverty of our
resources, and our phYilical lI'f'lIkness, all mell are
agrepd, and all hal'(> a common interest in co-operathlg
together for till' common good. In this Country
especially, there is no room for a difference of opinion.
Hindns and Parsees and Christians, the
Rulers and the Huled, the Prilileged and the Vnprivi-
leged Classes, all Rtand on a common platform, and, as
the eonstitution of the present meeting itsp]f demon-
strates, are prepared to work together. Tht, work of
this thus possesses eertain admntages which
are denied to similar gathering,;., for other. more or less
Sedaria n and Party purposes.
1\ 1 CO:'iFEHE:'iCE,
195
The P\'<)hlpln we ha\'e met llere to cOJlSider is one
of Ways aud :\1<'<11", About tlie exi"tence of t1w Eyil,
there i,; no ditfpl"Pl1ce of npillioll allIong: n" The
high,,t (ltficial anthoritie". like :-;ir Ewlyn Baring,'"
Sir Willialll Hunter, and other", with the highest Non-
official authorities sue}, a" Prof,'",nr lladabllai :\aoroji
and :\Ir. Hyndmap, are IIgreed ill admitting' tllat the
Poverty of tlti:.; Country j, phenomena 1. TIlP exi"tenep
of this PO\'erty no delll(Ju"tratioll. W p need
only walk throngh our :itreet,.;. H1](1 "tudy tht' lllost
:ltlperfieial a'peets of Oil\' Ecollomi .. situation, and the
faet forces itself upon u" that Wt' are a people of little
j'e,;ource". :\Iany million,.; 1llllnug liS "carcel}' earn a
couple of anna, a day, many million" more arp always
underfed. amI li\'e Oil the borderland of Famine 111](1
"low D.-ath. into whieh the failure of a single 1\[o11soon
precipitatp,: them. Of eOUl'se, thi" condition of thing:.;
is not of yf',-;tf'nlny, and is not th .. result SolE'ly of
.Foreign COll<l'le:.;t allli COlllpetition. It i, an old, a
very old r 11 hf'ribllll"h If we fepl it morE' kpenly 11011',
we f",,1 it hp,'a u"p Wf' are being rou,;ecl from thp Sleep
of Age", an(I our ha I"e learnt to :;ee, and nul' ears
hal'\' If'amt to I,,'ar.
Tlu' '1IlP,tioll of our <'olllparatiYe illlprOI'f'IlIPnt 01'
decline unci.!" Fowign Rule is ;;imilarly It qUf':<tion of
Antir]llariau lIi,f,,!"y, TIlt' pradieal 'Illf';;tion for 11;; all
to lay to IIf'al't i" not the rf'IatiYe, but tlw "hkolute
'it Now J .. ol'd Cromer.
19G
ESs.\YS 1:'>111.1:'> ECU:'>O'\[J('S.
POlerty and tliP pn.>sput of the Country
gE'nerally. To a certain ('xtpnt, thp ld"torical di"eu,
:-ion of tile situation i . ..; ill"tnH"til"f-'. T1JPrp can Iw 110
douht that. whah-'I'pr lIIay han' heen Olir illl}ll'OH'lnPllt
ill otlipr rp,'l'pcb. lit' h;l\p in rpcpnt timp, IlP('oIllP more
tltilll ("P!" df'l'(-'wlt'llt U['OIl thE' "iugl .. n"ource of Agri-
('ultnre, l'r(-,"ariou, :\lId a", that rt>gourcl'i"
upon intilIPlll"'" WI' (":1ll1l0t ('(mtral or ('ollnt upon wit"
cf'rtaintJ. Thp ('o-onlillntioll of Indllstrit'" which
J'e:.,:lIlatt-" tllf' dllf' l'l'Ol,,'rtio)l:' of Il\t'n \1'],0 plough tlw
soil and rai,t' raw I'IT,dlll'p. with tho,e who manufaetnre
this fall' prodlK'p, amI oth ... r, "tiJl, who pxchange and
distribute it. and th" illtl'l'l,lay of whosp thrpp-fold
activitit's makes a :\Mioll thrill"', II';)" lJt'I'pr It Ipry
strong fador of Olll' colledi,,. I'o"i:" Polity. \\'t' han'
bppll all !llong like 1110,t Allci"nt 'Iation ..... "'()J'f' or
exdnsiyPly agricultural. Knt Olll' ... mtn('\ lIitl, tlip lIorid
ollt,idp, and the fre .. dom of EX"illtlige II'hil'h 1,,1, rpslllt-
ed in cOll>'equenl'p, hnl'p prmilleed Ollp IllO.";! lllldp.,jr-
ahle l'p,nlt. TIt .. y lmyp ag,grHYatp(/ tl,p ,ittlatioll hy
making lU' morp tlwn PI'el' dt'l .pn, kIlt llpon a ,ingle
and precariollR l'e,Olll'('e, TI,p Iml w.tl',Y nml COTlllllp\"('e
of the Conn try, Rneh a, it II'a". j, lla,sillO' ont of our
. ,.,
hands, and. except in thp largf' 1'I'P,illell('Y Toww;. th ..
Country is fed, dothI'd. \1-al'lIlPcl, wa,llt'd. lighted.
helped. aml comfol'tpd g'PIlPl'a lly. hy a thouRand Arb
Industri", in thE' manipulatioll of which its :-ions
ha\'e ewry rlay a decrpasing' sharp, Foreipl
l:'illl'STHLlL COXFEHElI"CE.
197
tion, not hecall8e it i8 foreig'll, bllt it j" the
competition of Xatllre's powers agailHit man's Lahour.
-it i" the eGmpetition of organisl'd Skill and
against Ignorant'P and Idleness,-is transferring tlte
monopoly not only of wealth, but what is more impor-
tant, of skill, talent. 'md adidt,y to others.
The innew;e" of onr Exports and Import, "hou]el
not. dazzle om \,j,don. The increase is good so far
;1, it go .. ,;; but it is not nnmixed good, when that
illl'reaSe shows that we are only perfeeting oursE'h'es
in the faculty of growm:.1; Raw Produce, and
forgetting hy dis\liie. thp "kill and the wealth of
l'e"onrces which /Ilannfacturing and indnstrilll acti,l'ity
hrings in its train. Last year, WI' exported sixtpf'n
('\'O\'es of Rnpees' worth of "'heat, RicE' and 1'\11,1',
fifteen Crores Raw Cotton, tpn and It half Cl'ores Opium,
nine and a half Crore,; ()il-Seecl", E'ight Cron's Haw
.lnt .. , nearly fi\'e ('rare" of Hides nIHI :-;kins, one L'rol'e
1)f Raw VI' 001, thrf'e-fonl'th:.: of a ('!'Ore', worth of Dye
:-;tnff", half a Crore of Spice,.;, half a {"!'Orp of Haw :-;ilk,
and a ('rore of .\Ii,w .. llaneons Produce. ()ut of 11 total
of nearly one llUndred Crores of Prodnce exported,
,;pq>nty-fi\'e ero)'e;; were thus raw while of
mannfaetured 01' ltalf Illannfactnred ('otton ,ix
and one-third CrorE'S, Jute nearly two t'1'ores, Hugar
half a ('1'01'1', TplI the and a quart.er ('ron>s, Indigo four
('rores, and Cofi'e,> two (jrOl'eR, making a total of only
198
tWt'nty wert' t'xl'ortE"1. and of the:'e tll"t'nty
l'rorp" nearly b.-php wert' again tile prodlld of
Forpign skill and capital. ""hill' we exportpd raw
CottOll, lI'ortb fiftt'pn erorps of RIIl'pPs ami "IX and
three-'luartpf ('ror('s' worth of Cotton (roods, In'
imported ('rorE':' of ('otton (iooel",
and llearly four ('rOfe,,' worth of Twi"t and Yarn.
Tlli" single Export an(1 Import rPl'rt'f'pnt tit"
change III Olll" condition typically. anel III fad
up :-:itnation. [nelia. fifty )"PRr:-o
c1otht'c1 herself with her own .\[annfatll1ei', Rnd now ,he
is clothed by her distant mastp!,,,. Thp same is tllP e/l,p
with Wool, Silk anel other 'l','xtiles. with Oils and IIiflps.
In !888-89 we importp!! forty-one Lakhs of Rlll'ep,,'
worth l'mbrellas. fifteen Lakl,,: 1\'O!'th of Childrpn's 1',,)",
and Games, twt'nty-two Lakh" of forty-one
Lakhs' worth of Paper, ten Lakh" or Soal', twenty 1K'lkh, of
Matches, sixty-six Lak hs' worth of f ; la.-.'. tt'n 1.l1-kI18' \I'ortb
of Clocks Rnfl "T'ltches, Carriage" 1I'0rt 1, ,PH'n Lakh" of
Rupees,eiglit T ,aklo" CandleR, ten I.a kilo' Fllrllitnre, fift!'en
Lakhs' worth of .-\rms and AUlllllllliti'lll. twpnt.y-one and
a half Lakhs of Books, sixteen L"ld" (,I' Leather and Lpa-
ther Goods, thirty-ollE' 1,akh8 of Paint ... nearly two
Cro1'es' wort], of f lik hoth Kpro"i,w null Oil",
nearly tim and n half ('('ores of Hnil\\'ay :'Ilntel'ial", two
and one-third C'rnrp,; of :'IIaeliillery and :\[ill-work, and
Iron, :-;tpf'l, aIHi .\[ptal" of all sorh, lI'orth fh-e Crofes in
nIl. Wp illll'orted pl'en Flom, I'fllt. and Salted Fish,
199
and lastly Grain anrl Pulse. Thi:.: is our condition,
and when the whol!' situatio\l is thus taken in at one
we teel that WI' are standing on the edge of a
I'l't'cipi('E', and til!' ,Iight'st push down will dl'hE' us
into the abyss below of lin mixed and absolute helpless-
]]('>8. Our Shipping is not ours; not eYE'n the Coast-
ing' Trade is carril'd on in onr Bottoms. Thl'
bon of Craft to the total tonnage is two and a
third pel' c'nt.. and it is II stationary percentage. Our
Banking i" not ours, though to a larg!' extellt we find
thp money which the Exchange Banb. ThE'
amI the FrE'ight and thE' Commission Business
are all Foreign )lonopolies, and the Foreign :\Ierchant's
hawl i,; se('u trafficking (iirl'ct with onr producers in the
rt'Inotest and smalll'st Villages. Tille HaiJll'n)'s arE'
admittedly for'ign }Ionopolies. We haw', of ('Olll'.-C',
no legitimate ground to complain ahont these For,
A(,!rupies. They do YE'ry work and t\wy :'\1'" <llll'
lIlasters, amI hi'lpfnl masters too, if we are apt
They all indicate one fact which onr people should lay
to hE'art, but wl,ich they are too often temptf'{l to lose
of. Political [l,('endancy i, not tIl<:' only
particular vantage ground which we haVE' lost, Com-
mercial and :Uanufacturing predominance J1!1turRlly
transfers Politieal 1l8c'ndancy, and in this our eollfl}lse
hat' been e\'en far more complet'. Of course, the
tion is not hopeless, for nl) sit nation is ever to
thQse who master it" real :lignificance, and re"oll'e to
200 ESSAYS 0:" I:"[)JA:" E('O:"O:'II(,:".
do their be8t to improve it. A, -tated abol'p, the ques-
tion at issue is one of And lind it is
qup:;tion which we have met to
There are Rome people who think that, long a' we
have a heavy trihute to pay to Englanrl, which take8
away nearly twenty CrOfl'S of Oul' snrplns we
are doomed and ('an do nothing to help Thi,
is, howf\ver, hardly II f>lir or manly position to take Ill>.
A portion of tilt-' burden represents interest on moneys
advanced to, or im'este I in, om Country, and so far
from complaining, we hal'e reason to be thankful that
we have a (;reditor who Oil\' needs at a
low rate of interest. Another portion l'f'presents the
value of Store,; Hllpplied to liS, the like of which we
cannot produce here. The remaiuder is alleged to 11<'
more or less necessary for the pnrposl''' of Admini"tra-
tion, Defence and payment of Pf'llsions. and thon,g;h
there is good cause for complaint that it is not all
necessary, we should not tor get the fact that we are enabl-
ed by reason of ,this cOnJ1f'ction to Ip"y an equi-
valent tribute from ('II ilia by <l1'U' Opium :t\lonopoly. T
wonlel not, therefor ... , t\",ire yon to rlivert IlUd wastE" your
energies in the frnitl ... ", r1 of this question of
tribute, which had 11('tt ... r h ... left to our
Secondly, in certain quarters. it is fparE"d that till
we find in India ConI and Iron in abundance. our
"trngg'le with the l'rt'sf'nt situation is ItoI'ell'sR. The
all,;lI'el' to thi, is, tltat tltt' l't'som'ces of Iron and Coal
:101
thM hale bl'pn di,,'ol'erell arp not utilis(>d hy to
the foll extent. It will he tilllp I'nollgll to complain
when we ha,'e donI' our lwst with the existing Coal and
Iron There CRn hI' no 'pJe,;tiou that tllf'
of foreign l'ollll'f'tition grf'atly helped by the abund-
anee but far 1Il00e llPlpfnl than
materials is the and skill which work them. and
whi('h conquered [lldia long lwfore :-iteam Power CllllIp
into Hi,e, and wl,il'll turnl'rl tIll' hahmce of Trade again,;t
Imiia. If we hut ile'luirp tlIP spirit and the the
H'''Oll\'l'eS will he in yf!t unexplored ,dtulltions
all OI'er the Conntry.
Thirdly, peol'le are lward to in de"l'nir tllP
'Iuestion. Where is the Capital to ('ollie from whi!'h will
f'nahlt' us to huy tIle Coal, IrOIl, and 'laehinf'ry, amI
I,ire Foreigners' skill. and make tllf'rn do senk" for llR
't ')UT resource, are no doubt ""'lllty. but they are
ahundant enough, in fill consl'il'nl't'. if \\'t' would or.ly
them as ,;u('h, and not throw them away into the
'ea, as we do aftel: year, in deference to old tradi-
tion", and anti(Juated fears and mi,tru,t. E,'ery yem'
WI' import in Treasure Bullion, Gol(\ and Siher of the
\<llne of twelvf> Crore;;' wOlth, i.e .. th!'!'e Cro!'', of Gold
anclnine CrOl'es of :-iilver. The wllnle of the Hold diR-
appeari;, and is ahsorbed hy the find of the SilVf'1'
,\,I'PII Crorl's are Sf>nt by liS to tIl!' 'I int every year, and
ti,e rest is ahsodwd like <Told, /3il){," 1834, t his a b801'b-
ing I'I'0C""S has sN'l1l'ed tl,,, ,irtnaJ destruction of
202
0:>1 lXlllAX ECOXmll('S.
nt>arly four hundrNl and tifty of ". t>alth, whid.
mig'ht haye Iwen turned to bt>tter a<:'co}mt. The 8ayjng
of four hundred and fifty Crores in fifty years by twenty-
fi"t> Crores of people is not 11 sign of great pro'perity.
but we ha,'e lIla(le om position worse hy burying it or
using it unproductiwly. This boarding. at least. pron'"
that nearly eight Crorps of UIl]!,.e,.; 11):1," I,p each ypar
turned to ,'al'ital aecount. if we \vPH' (lilly " .. ""h .. d '"
to use it.
Fourthly. of course. in th., ctloice of WaY" anrl
J\Ieans, it js not open to u:< to adopt certain 1,Ialb ()f
operation, which, howen'r 1II1leh they might be con-
demned on abstract have been followed with
pradical ;;U(,(,E'SS in many of the most enlighbcned
Countries of Europe and AlIlerica. "'I' cannot, a,
with the GU\PJ'lllllent of thesp Countries, rely 111'0n
Ditii>rPlltial 'l'Hriti', to protect Home during
t1wir t'xl,erilllelltal trial. "'I' canl10t expect tht' LTovel'll-
ment here. til ,\" what FraneI' or Germany for
their Tra(le, and tllE'ir :-3ugar Indnstry, and a,k
GO\'E']'J)IlH!lt Bl'll11tif>s, and subsidies to he paid out of
gellf>ral T1lXP', Tilese are htc'rpsitc's accor<ling to Engli,h
Politieal ECOllOIIl\', ;;Heh as is taught to us. and whether
they be rf>ally ",) or not, it is 11seless to di,'ert om
energies in frnitlE'''s discussion, and seek to achien"
victory oYer Fl'tc'e TradE'. "'e may. llOwe,'er, fairly
expect GOYE'rnmellt to try as all eXl'l>riment the Poli!'y
of the CulturE' whil,h the 1lnh'h Goyerl1luent
1:-iIWSTl\lAL ('U:-i!"Eln::-.n:.
203
actually worked for thirty years ill ib 0\\11 l'o,",,,es,,ions
in the East Indies with signa I snC('f'''', and the principlt'
of which acknowledged by the (ion'rnment of llldia
in its Policy of T(I[Jfli advances, and its Hailway den>-
10pll1ent. lEthe (Jowrnment borrows Crores of HUlIE'e:.;
PI'ery year Ilnd constrllcts Hailways aud Canals out of
tllE'Se loans, it can well encourage the growth of nE'\\,
Industries; by gnaralltf'eing or subsidising such Enter-
prises in thE'ir piOllPering stagp. It has done " ..
"llcCE'ssflllly in pioneering Tea, Cinchona, and Cotton
Enterprise in cE'rtain parts, anel it ['an WE'll extend tIn>
scope of its o]lE'mtiollS in otilPr and Illore fruitful diree-
tions. It can also I'ery wt'11 be asked to producp ib
own Stores Iwre, just as it produeeH certain minor arti-
re'juheil hy it" Military "'no l'oHta\ Department.
It can also undertake to huy Leather, "'oollen Good",
&c., from the ludian Producer, and tlm" ;;ecure tIL("
hE'uefit of a S\1\'1' at remllneratil'e rates to lIew
Ilndertakings. It can, finally. help peo!,le to join their
('apital togetber nlldel' SIH'1. <+narantees and Offkial
slll'E'I'I'iHion Bud affiJl'c1 "nell f,H'ilitiE'S itS til<>
(Ton'rnIllPnt, of Enrol'" Ital'p extendp,1 to Land IIll-
prol'ement BHlllo<.
AftE'r all, (Toyernlllpnt 111"11' (atl do hilt Iittlp, saw
pionE'ering work. ThE' (JOIprnrnplIt of 11lIliais anxiolls
to help us. It i, l,rel'art'd to Ellligratioll
abroad, and flllrnigratioll fmlll dpll"ply erowdE'd to
inhallited tract", Bnt, ",herp [tn' tl,p mell wll(}
20-!
art' plt'paTH] to takl' ;I(hantage of this extended field
'Jf Colonization hoth in India, Bnrmah, and elsewhE're ?
We haY\' )'f't to thE' "'e have to
l'l'solrl' to work I'nrnt'stly and with a
purpoRt' and an organization which will conquer all
Tilt' E\'il is too ,grl'at, and of too long a
to he brought nndf'l' control by private in-
diyirlual I'fforb. WI' haw to work with a will, to pull
long, nnrl jllllJ all. and to pull till we sucl'epd. It
I'; on thi, al'('onnt thnt WI' nl'f' Jnl't togethl'r. This
],; only a Prplimillary :\ll'eting. "'I' ha\'1' to 1ll0\'"
till' otl1l'r Proyincl'R, and arnmge for a General l'on-
ft'rencl' of thosf' who t,hink with on this matter. and
when tll" Jl}pn of light mal If'ading from difierent
lllt'et togethl'l'. \\'1' hope to ,;t't the hall rollillg.
The Promoter:; of tllP ,jlO\'elllent ha\'e HOt hit upon tid"
('onft'rence Oll the "pur of thl' mOIllt'llt, or ", an agrpp-
abll' distraetion. Tht' idpa liaR heen ,lowly ll'\'t']oping
itself. It first found PX]II'pssion in a 'l't'Pch made two
yean.; IIgo at AhIllP']llag'H. thPll fripnds havt'
worked, lind trip,] to ('(lueate PubliC' Opinion. A vpry
tho\lghtful arti,-]p l"oYPl'ing t.hp entire l'<mge of th('
Indian Economi('a] ,ituation, Rnd s\lggesting ,"Yap and
::\leans, 'appearpd in ont' of ou\' Journals, and it has
attnwtl'd pxt('n,i"" notice. The particular positions
tflkell up ill thnt arti..Ie HIlly be controverted, and haw
in fact bt'pn l'ontrOl't'rtl'd, hut its genel1l1 accuracy as a
(]psc)'iptioll of tIlt' pxisting Btlltl' of thing'S has not been
20;')
qnt'"tiont'd, and if it promotE''' it !Hay yet
"1'1'1'1" ilJlportant I think, I ha\'1" placed
h"fore yon the whole situation, and hale illso gil'en you
all idea of tht' lint''' on which I dl"sil'l" that the PlItirt'
qnpstion should hp discU5sed, now or herl"aftel'. VI' P
hal'" to kt'f'p in mind the following almo"t axiomatic-
Truth., in all our
1. The work of tllp Conferenee should be ('onductecl,
amI it" ('onstitntiol1 franwd on XOII-
Party IiIlPs, so that all (']as"e, of l'eol'le may take part
in it.
2. What we haw' chieRy to al'oid is th!.' 1'1il'sIlit of
impracticahle objects. W.. hw,ban(l 0111'
little resources to the he"t of 0111' power, and not ex-
haust them by vain eomplaints against thi' drain of the-
Indian Tribute, or by gil'ing hattl!' with Free Tradt'.
3. 'Ve mnst realizf' clearly 0111' exact i.e.,
first, our phellOmf'nllJ PO\'E>rty, and secondly. our grow-
ing dependence on the sing'l!.' amI precarious resourcl"S
of Agriculture.
4. Having situation, w!.' lIlust strive to
correct it. with /I full that we eaullot do all that
we wish in a year or a decade. and that lI'P
can at the most create the aUfI the tendency,
and initiate the lllovement of Chang'' and it afloat.
5. The proper scope of the work to be clone is to
correct the disproportion bet\\'pen our produc-
tion of Raw Agrienltural I'roouce, and our
206
ES!;AY!'i U:" 1:"P1A:" ECu'iU)ll('S.
in tbf> production awl di,tl'ihlltion of :\Ianllfadmed
ProolH'p.
G. In tIlt' at"complishlllpnt of this alln. we shoulfl
not forgpt that tlterp arp I'pl"lllAnpnt ami
<1isadvantagpR pnjo)"pd hy ("prtaill ('ollntries and Ha("p,.
which rpgnlatt distrihution aud ('hoicp of T.IIhonr, awl
tlmt WI' cannot hopp to :lccomplish irnl'oRsihilitjps. Aml
ypt. within thpsp limits, thprp is :lmple ,;copp for good
.md honest work, for many a dpcade t.o comp, in tlw
utilization of OUI" pxisting,-rplatiwly to us ample,
though as t"Olllpared with ot\wr Conn trips SCHllty,- -re-
"omcps of natnral Agpnts and Capibtl. with our lilllitle'"
of Lahom. TIt(> ,kill and patjplI("p of om Ill-
dn,trial Classps arp a rich inhpritant"e which cannot fail
t'l IIplp us. if we hut provide 11 larger sphpre for it;:
"Towth alld trainin".
:-. ,...,
7. Hearing thps.. limitations find flchantages in
mind, our morp immediate ptiorts should hI' diredpd
to the impl'O\'plllt'ut hy Art and Im/listry of our
raw wefllth of Agricnltural Producp, and of th!'
articles whidl \\'e .. n<1 away as Hflw amI
import as ),llllHlfa<.:tnr!'fl ProlineI'.
8. Xo Hand-marl .. Industry ean hopp to tltrive
ill l'tllllpptition with Industry Illo\'t>d hy chpap Natural
Agl'llb;. The f1'l'p use of Natural morpove1',
llla Ifl1'gp of Capital a neepssity, find
tIll!' handicaps all inrlil'idufll ('florts hpyond riyalry.
What we have to hear in mind j,;, therefore, till' o1'gll-
J:>nr:-;THIAL CO:'iFERE:>CE.
207
lIization for IJI(iu,;tl'Y and Capital on the Joint Stock
1)l'ineipIe for collective and large undt'rtakings.
9. The superior ,kill of the Foreigner must bt'
arailed of freely hy it from other Conntries,
till wp train up our own people for the work, in
Teehnical here and in Foreign Countries, and
further, in tltl' fm' more pradic:lI rii:;eipline of Factorips
alld :\[ills at work.
10. Our Rpsourees of l'llpital are scanty, but if we
only knew how to use ,uch resources a,.; \1'1' han', and
brought tIlPm together, we ha\'e more \\'e:lIth find
Cllpital than we call at prest'nt properly handle.
11. Whilt' we pllt forth Ollr energies in tht'sE' dir(>e-
tion,.:, we can well count upon the assistanct' of the
Htate in regulating our Co-operative efforb.; by helping
us to form Deposit and Finance Banks, and f:wilitating
recon'ries of made by them, by pl}('ollfaging
Xew In(iustries with Guarantees or Huhsidips, or Loans
at low interf'st, by pjoneering' the way to ne\\' Enter-
prises, and by affording' faeilitips for Emigration and
I rnmigration, and estahlishing Technical InstituteH,
and bnying more iargely the Stores t1wy re'lnirt' hprf',
and in lIlany casf'S by producing their own Stores.
12. State llelp is, after all. a subordinate faetor
in the Problem. ()ul' own pxertion and our own reso-
lutions conql1er the difflculties, which arp
ehit'/ly of our own creation.
I1re 11 fe,\\ of tt.l" wbieh occur to Ill!'
fit thi" moment. You are lnost of yon far hetter nnel
more l'radicl1lly ,'Pfsea i}l these lllatters than I ("all
well hopp to he. amI if I WE're l'a\1l'd upon to jlli-tify
this lll",,:mmption on my part, I {"an only IIppeal to the
fact that it hils heen the Hereditary Pri-
\iJege to formulate the Nation's "Wantil and
R'merlie,. With thl'se I shall, with your
permission, conclude thl' speedl and fl'sUme my seat.
"4==
11
9"
YIIL
TWENTY YEARS' REVIEW OF
CENSUS STATISTICS.*
..........................
'I'HE Del'ennial \'el1:-:n:.: Hl'l'urt fur
Bombay I'I:e,.:idplley, Illll('h
\ 89 \. fo), thE>
of it,.:
hy rea:.:on of HlP gn'at Ilelay \1,,1\ 1,,1, takell pla(:" in ih
1'Ilbli!atiOlI. Thi,.: (hfpd. how""'!'. into imigni:-
fieanep hy the "iill' of anotl,,!' :111'\ Illon' ,'erion,.;
sion. for which appal'pntly thpJ'e was less exC'u,e,-we
nfer to the disappointment ("lllSPiI hy the total allrl
"tnrli{'l] lleglpct to bring together the facb, alll] tigllJ'E'S
of the past thrE'E' ('Pll,.:uses, in a way to illustra.te tlle
Sodal and Econolllieal Hi"toryof this. Pre,itielll'Y,
riming the last twenty years. Attpll1pb, indpp(l. ha\'p
heen here and there made t.o compare anel ('on\]';I"t Ih!'
('ens us figures of 1891 with those of 1881 ; hilt t hp:.:e
attelllPts, being only half-iJE>arteel and unsy,tpllwtic,
lead to very ineonclw:il'e results. In the fir,t place,
I nelia is not Allleriea, and a period of ten years too
short a term to mea;:ure any real or permanent changes
* P"hli,hed in the POD"" Q""rte"ly Jow'nul, 1893.,
14
210 ESSA Y:-; ox lKDlAX ECOXO:IIICS.
in the condition of Tn dian The figured re-
sults of 1881, moreover, hall the additional di,advant-
age of recording the 1<J:':'(" sll,tainE'd, ill
of the great Famine of 1870-78. "lid tltu:, fUrlJisb"d no
"afe basis for a eOlrlpari'<J1l of tltt' normal {'onditiUJli
of life in this Country, :11111 of its pl'ogrE'ss or otherwi,;"
in ordinary eircumstall('e.-. Thirdly, tht' ('ew'lls figlll'e,
of 1881 were arranged and ,'h,,,ined in litany respect,
upon lines not observed ill 18 i 1. ami t "ese Jines haye
been again abandoned ill ell11111t'rating tlle result" of
the last Censm;, For tltese 1'(-'1I,on". tit" t'E'nf'tlS Report
of 1891 appears t.o liS to Iw u,;t'fnl ehiefly in its Appen-
dices, and we propo:<e. ill the to make
an attempt to present a l'OIll1ectt'd liE'II' of tbE' progrl'"
of this Presidency dllring the last twent.y years, as fAr
as it may be g'atherf'(1 from a comparison of the re-
sults of 1891, with tho'" of the CE'lI,ms of 1871, only
occasionally referI'ing to the intt'I'lneciiate Census of
1881. "I ere figured ltowel"er detailed
and numerous, hm'!"' no snggf'sti about them,
and it is necessary to study them in the lights and
shades of contrasts and compari,OIl,' to obtain practical
If'ssons for the guidance of the Administration, and for
the stllllies of thf' Political Economist. We ,hall con-
tine our obsermtions for the pres!'nt to the purely Bri-
tish Districts of this Presideney, resening our remarks
upon the fignrf'd re,ults for the Feudatory States to a
Iutnre isslll' of this .Journal.
TWEYry YEARS' REVIEW OF CEliSrS STATlSTICI:>. 211
The hfell of till' ('ontinupd con
-tant. bping ahout 125.000 miles. The P01'ula-
how!'wr, do not pl'p,ent stationary fig-ul'ps.
Till' total Population, Ilcl'oniing to the Cpnsus of
Ft'hruaJ',Y. 18iI, was 1(i,228,774. The nnmbpl's wel't'
almost stationary in 1881. being 16.454,414, Of all
of only two and a half Lakhs-I'5 per epnt. iu
t .. n ),paTs. In Ft'hrnlll')' 1891, till' Ilumbprs returned
\\"pre 18.857,004. the inCfpllse hpjng OWl' twenty-fiye
Lakbs. Of 16 ppr Ct'llt., in twenty ),pIIl'S, 01' about 88 PPI'
,'pnLI){'l' ypar. '1'111' DPll>;ity of thf' Population, which
130 l'pf squaTI' lIIil" in 1871, and 135 in 1881,
lias iUt'ff'aspd to lH"al'ly I,) I l'Pl' square mile. A com-
parison of tll('SP with tuo,!' of England and
\rales c'annut fail to he \'el')' illHtfllctiYe. The arpil of
England lind is .')8,186 squa!'p and its
Population, whieh was in 1871, rose to
29,001,048 in 189], showillg an increase of 6,278.i8:.!l
or llParly 30 l't'r (,pnt. in twpnty ypHrs, being nearly
donhlp our rate. Tllis hi<Th l'Ilte of increllse "'118. it
.
be note<l, maintained notwithstanding the grpat
rf']jpf giwn to tll!' Population of England hy an extpn-
"ivr system of Emigration, the lik!' of which relief, we
do not f'njoy Iipre. Till' aetual deni'ity of thp English
l'opulation increaRed from 389 l'pr square mile in
1871, to nplll'ly .500 pel' square mile in 1891. The
rate of increasp in this Prei'idpl1cy was only 8 per cent.
"-:.:aiu,t tIl!' Englisll mtp of 1'.1 pel' "put per year, and
21:!
th ... ilH'reast> ill onr ratt' of ])"II"it), i" onl," :w pf'l' ('I'llt
the Engli,.,!1 figm ... uf lIC) pN ('''Ilt, [II (Jtiler
wonl,.:, the Tntt> of ])t>n,.it), in ElIglalifl. whil'h WII'"
tilllP' our rat ... in 1871. has now in('"p""pcl tn tllrf'P
n l"llf timp" th .. aYf'l'ag-f' 1)PII,ity in thi,; l'rp,itlpnl'Y
Wt> hal'e lIext, to examin ... the details for the s ... \ ... ral
Dili,ioll'> ofthe l'r .. ,id .. ney, F'll' "'1IH1lleratioll l"lrl'0,e"
the l'emus Ht>port of 18i2 !'f'('og'lIi:< ... ri chi ... f1y four
bnst'Cl on tht> l'rinl'il,l .. of di,till!'ti\'", I'hy,;il'nl
alii! e1imatil' 1"'(,lIliaritip" nam"I)', th .. J)p('caH, KOllknll
(rlll,-mtll, I1wl Silld, [II th,' (','nSII' of IIlHl tl,i,.:
prill('i!,lt> wa:, lI0t followed, allil the ,!.:'lIlllpin!.:' WI" Illad!'
Oil thf' hasi,.: of til" Di"isioll": (Df"'(,<1I1, KOllknn. (iIW'-
rat h. Karnatil', alld partly 011 phy;:i('al "till
partly Oil Language l'eeuliaritie,.:, In IH!JI. tIll' "II II e
\,rilll'ipl .. wa:, follow .. :l with this fmthf'!' ('hallgf'. tl,:l1
tlw Kallam Distriel, w lIil'h was cla,,:,,t! IIl1d",' Ka mati!'
ill 1881, has hePll elasst'd IIHelpr KOllkal1 Il,i,.: tillll',
'1'1,,, .. ('hallge:, make it .. to {'oml,ar" tl", t"tal,
"I' ""1' ('''II:'n:; with IIUOtllt'l'. Rnd intro<iuet' II \H'(',Il,-"
.. I''II .. nt "f \'ariatioll whieh nlwap lit' I1I'oi(l ... ri
ill ,I){'h "lIumeratioll', \\' .. haye fOIl)}I! it III
of tllp,P dum;.::e,., to tRk .. "l' the Di,trid
""pllmt .. ly, all<! th .. 11 grollp tl, .. 1ll to;.::",t]'er, IIIltI
tl... follo\\'ill;':: !"tatf'IIIPllt 1'1' .. ,eub; tIll- ('ompnrntil"
""\lIb "fthe llSeertaille<1 total,. of 1'O\,Ull1tioll hy Ili--
III1lI ill all,l lR!J1.
----------------------------------------
1 GUZERATH
.\hml'llnlHld
PI'HH'h Is
Kairu:
Broneh
SUl'Rt
Total UuzCI'ath
,\n'n in lIIill's
2 KONKAN.
Kltnnra ...
Ratnagiri , ..
Kolahtl ...
ThnlHt
Total KOllkan
.\l'l'i\ III squirt, miles
3 DECCAN.
...
N".ik
Nagnl'
B{Ltal'n
Poona
Shoit,pul' ...
Total DC(-'('{Ul
Area, in 8fJl1an' miles.
POjHlIu.tioll.
lR71
)'(I}J,liatioll
I

:11:1, .. 17
7r;:!,7:l:1
:1i'>ll,:l22 3"1,4!Kl
61li,OR7 MIl,IlRIl
... -VHII/.12-- 3;048,071
11 l.(IS2' 10,293
J 1H'I"l'iLSe or
I )m'reltHe in
20 YPl:lol'K.
Pe('('ntll.gc
IncreaHe.

:1\11", .. 116 446,:157 47,1l4:'; I 12'0
l,Olll,I:16 l,lOii,!l26 R6.7!10 Rll
:lr,(l,-l1)r, I ;-,O!l.f>iH l Ir'!!,l7!! I !.(l
R-t7,4H I 91H,R68 J ;'7,444 I W'O
... 2,615,:371 2,1l66,735 _ -_-.a:;I_,_:l_iiR_1----I-:l-;,-
I :1,f,58 1:3,639 I'"
------ ----- _. __ .. .:...._-- ----
1.02R,642
7:H,:IR6
77:1.!1:18
I. 1 16.0:10
H07.2:t)

;'.22:\.2:17

1.460,R51
84:1,;'82
88R.75;,
1.22:>,\1811
I.067.ROIJ
7i')ll;6RH
-6;2:l7.666
:JJ',:mo
4:12.2011 42'0
10\1.1% 14'0
1 lIi'O
1 t I!UI:l!1 Hr)
160/.6;', IR'O
1<7,6\13 1M,
1,Ill
.. -.-,
])"e l'a,t1y to transfer
of Taluh,;ts.
DiviHion.
4 SIND
K.nlrhi
H,dr .... blld
'l'hlll'- Pal"l(RI'
Hhikur'pm'
I'ppe. Sind Frontier
Total Sind
Area ill Illilps
5 KARNATIC.
HeigH-HIll .. .
OhurwlU" .. .
Kalndgi 1
Bijnpur I
Totlll KU"llntir
AI'(\n in :-:ljl1nl'(' milt-':-i
6 Town aml J:-41n.nd
Dornhay
.. ,
of
Population
IIl71

72],047
11/0.761
776.227

2.1\12.41;'
Population
IR91
[,64,IlRO
(lIR646
2f)8.20.1
9\ :d!li
I
-1
IIl('reaf4P or
Dec'rease in
20 leaTH.
HI.:-IRr.
1H6.2flfl
117.442
I

O'j"":.!IMI
Pe"centllge
rUC'ren.Hp..

28'0
6[)'()
11"0
!\o()
34'0
----- -,--- -- --"-- I _______ _1 __ _
-t6,MlI<
(1:18.7;.0
!\f\/l.1l:J7
f< W.O:>,
47,789
1,III:J.261
UIflI.:JH
7f16.332
74.;>1 J
63,277
1!I.mI8
2,742,824 ! 2,1<60,n07 I Ili<,II!lO I
'---,- ----------------_.
J4,llf.:\ I 14,92R ...
H21.76i 1 77,3r,H
;-;:'0
6;)
:N
4.0
26'0

I hl(' partly to trnnsfer
of Talllj,ak.

- ...
t'i
r,
(/:
...

'r.
o
'-':

::J

..
J(
'"
'"
c5
'"
c:
;::
;;:;
of:
TWE:'I"TY YEAHS' REnEW OF CEi\SrS STATISTICS, 215
It will bi' spell from this Statement that thp
inerease of Population in !-'ind has heen nparly twice
till' asemge for the P)'esidency,it has hpen a little
orpr thp average in the Deccan, sensibly helow the
1!rpmg"e in Guzerath I1nd Konkon, and milch helow
tllp R\'erage in thp Karnatic. Th" smpl11;; PopulatioH
of Gllzerath finds R convenient out-let in the Panch
:\[allaI8, that of the Deccan in Khandesh, that of the
Konkoll in Bombay, while in Sind tllp exppnse of flTablp
h11t unoccupiprl lands is almost limitless, bping dppenrl-
pnt upon the pxtension of Irrigation I1nd not on Rain-
filII, and thpre is apparently no ont-Iet. for
I'xpansion in the Karnatic The
dellsitie, of thp severaJ Divisions rlisel()sp thp following
\"ariatiolls in the proportion of illerpa;;ed Den"ity during
t hI' Jast twenty ypars.
Djyit-sions.
(
I )ec-enn
Konkon,
cX{'luuing
Cit," of Bomhay
Ka,rnatic
Sind
DENSI'l'Y,
1871,
18Vl,
27!t
30n
1,14
16:!
iI':] 21i
185
lfIl
47
60
HEMARKf.;.
The largest ,,""solute
increase in Density oc-
<:lll"!i in the Deccitn, n.nd
the le8.Ht. in Kanmtir-.
If the Panch l\1aha\ figures be excluded fl10m those
of the Guzprath Didsions, the increase of Population
216
ESSA)"1'; O:oi 1:\ OIA:-i
in twenty years in tIle older and :;ettled of
Guzerath, ba,; been ollly eight per eellt., and in Broadl,
there has been an actual decrease which reqnires to he
aceounterl for. Exclnding Khandesh, the illuea"e 01
Population in the Deccan Districts has heen about
14'0 per cent. ill twenty yean'. TIl!' f'incl mIl> of
increa:ie is nearly eqllal to that of England. Tlw
Ronkon District, show a ntte of inl'l'f'ase which is l}('al'-
Jy equal to thnt of the Dpccan, pxclncling KIln<iesh. aTIlI
the Karnatic fare tile worst of all-the in-
creasl' hping almost -l'0 pf>r ('ent. in
twentY.WIlI':'. It is ohl'iollS that til!:' smlll] proportion
1) inerease ill tllPse Vj,tri('h; due to t1.!:' aft!'!' effect,;
uf the FalllillP, from lI'ilil'il apparently, th""e parts of
the Coulltr}' Iw n' not .'"t reconred. TIl<' Populatioll
of Belganm, llhal'war lind Kala(lgi 01' Hijapnr in th!'
,
year;; 1871,1881. ;lnd will h .. frolll the follow-
ing StateIlH:'IIt.
--------_.
Belgnuill ,,,
])hannu' ...
Kaladgi 0,. Bij"pm'

! --J.-l.! I ...

RIG,:!7:J
11'81.
---
F'tH,fl14 1,fll:}.261
><82,909 1,t):,7,.314
6.31<,4(13
7\i6,33!l
It will he t!Jus st'eu, tlmt tlm.>e
lost lwady tltn'p a half l.akh" of thpjr l'opnla-
tion or 3'0 1'1' ('I.'Ilt. ill till' timlilJf', illld tllP), harp
TII'E:'iTY YEAW,' HEYIEII' 01' CE:'iSI:S STATISTICS. 217
bf'pn .inst ahlp to make up that deficit during the
la,t t!'11 years, The actual of Population of
"I)nrse, 11101''' tllan tllr!'" and a half Lakhs, for, the nor-
mal increase ill ten )'''111', Illnst hp added to this figure
of dpficiency. This ciscumstance acconnts
for tile slllall !'Rte of increase in tll('se Distriets. Com-
I'lIl'pd with till' totals of 1881. the in(,l'pa,,; in the
Kal'llatic Districts has ex(,,,p(lpd 20'0 per eent. ill tpn
n'HS, till' rat" ofinert'llse hpinl.!; 2'0 per cent. ]I!'r yt'Hr. In
tl,e Dp('('an Districts, Kltandesll amI Xasik dill not
-lIft"r a shl'illkagp of Population. in cOnSe(l'lPnce of the
Famine, and Kllan(lesll showP(\ an increase .of over two
Lakhs, and X,,:<ik of 1-13,000 p('ol'le. The other four
i;;tricts sholVer! a falling off, of27,109 in
in Poona, 229 ill amI 136,888 in the
,I,tieiency in all 0111' allll f,)ln-fifths of
]wtwet'll tilt' tot,,],; of' .I8il amI 1881. ThE' aetnal
incl'elLse in tlw"p filll\, Iwtween 1881 and 1891
i, a hont s!'n'n L'lk II', whic It tllP proportion of
in ten yen!'>; to nearly 20'0 per cellt. In other
words, the ])t'('('an Districts, haying less sen'rely,
1,,1\"1' mllipdmore rapidly than the Kal'llatic Distrilts-
which 110W stand \"(c'ry much wh"re tlley stood twenty
ypars al.:o, in point of Population. The Guzprath
j)i:<tri('t,;, exclnding P;weh :\CallaIs, did not sllfft'r in
any way from tl,p ra,"illl', al1(l tit!' progrt'ss of
Popnlation tL,P!,,,, a['I",an' to ht' dll!' partly to extE'J'nal
cheeks, slIdl as Cltolera ami ]lPH'\, Illortality, >Iud partly,
218 ESS,\ YS ON I:-'Ol.\:\,
to til<' opE'ration of prud!'ntial andl'rp\"!'nt,il'e
The of It fertile Soil anel industrious POpllla-
tion arE' fully utilized by the p'(i"ting Populatioll of
thrE'!' lJ1l1ldrpd Souls pE'l" sqnarp lIIilE'. and thE' availahlE'
arE'a for E'xtension iR RO lilllitpd that til<' Ryots hav(' no
oth!'!" l'!'sonrce hut to emigl'atp to t hI' Panch
Thprp a similar pscflllB for thp ,'nng!'ste(l parts of thp
Deeean in Khandesh, and for the Konkan Distrieb
al'pal'pntly in Homb<lY.
'Excluding: whose clilllatie conditions lue ,0
entirely ditf"l"I'llt from thp of thp ther ..
ArE' only fom Districts where the extent of a\"ailahl'>
arabI .. land 1'''1' one hundred of tIll' Population excepcl;;
ten Acrps, all,l in two only. Khanrlpsh and Pane'll
l\lahals. tili" prol'ision pxceed, twpnty-fi\'p Aefes per
one hundred oftbe Population. In all the remaining
Distridii, the are helow ten Acres ppr onE'
Imndrerlof the PopUlation. wl,ich. as everybody will
admit. is a very nominal figure. These
will pl'rhaps, uot. be q uitl' intelligihle without fllrthf'l"
amplification. the chipf deppndence of our increas-
ing agricultural Populat.ion on the land ;;till al"ailable
for cultivation, tht'" following 11Ils heen pre-
part'"d to show. what Area of culturahle unoccupied land
still availahlE' for further of C'llltivation, to
keep paep with the increasp of Population.
Populu,tion.
------------
.'-ere. of
t'ultimted
Laud.
i r,a.nd still
I
AvnJila,hle for
( uJti\"ation.
--------;------,------';---
Kairlt ...
Panch Mah"l.
Broach
1,870,717 87,872
871.5811 747,565 74,132
. .. i !H:J,417 480,716 177,80n
"'1 3-!1,-!!1I1 641
1
,477 25,868
Sun .. t ...
G4!1,11F'!I 'I,2G6 65,260
. -- -----.1-.- -- __ .. _______________ _
GUJERATH ... Total.'
-- ... - -.-:l---&!7,424 -
'.' 1 I 'qC I "I'
nO a)a ... '..,.;}f ,""-,)
Ratllagi .. i ... ' I.IlHI,136
Kallara I
- -- ----------1----- ----
KONKAN '" Tota!...1 2,61[i,371
4,488,741
953,!,1.3
704,786
3\15.877
324,746
2,379,{(12
430,932
IV;.f146
57.1114
5.40:\
61.H:1

- ------._------ - --- .----- --------
K,,,,dc.h 1,4(16,,,51 3.187,(164 77!l.8G-+
N a.ilL.. 84!l,r.R2 134,H7U
Nagar 888,7[,;. :1,07\1,5,';5 123,26:1
POOIll' ...... 1,1)67,R4HI \ 2,4:;1,806 11(181<
Sholap"..... 7:.0.6$11 2,4:m,:;13 23.(1:11
Satan, .:.1 1,22:',111<\1 I 2,12:1,870 3!i.U:.
-------------\_._-- _.. ----- ---. ------ --
_ .. _ l:>.6lo.,Ill[, __
Relganm }M1I.-,'j
Oha'w.... 98",037 :\.11 :1.(;:,,; 103,Rilll
13ijupm' 816,037 72,!!o.:;
KARNATIC Tot .. l.
Kar'aehi
Hl'derabad
Shiku"pur ...
rppe" Siud Fron-
tier
Thur and Parkar ...
SIND
.. , Total.

42:J;4f1ii
721,947

R9.!lHrl

2,192,42[
Grand Total
... \ 16,882,360

",-.'IA76


;)22
1
:lHI)
[>,27R,623
1O,3{(I,Go-.o
40,338,830
282,CH)9
1,139,634

1,722,414
IM,7g1
443,203
r',760,2!t;
7,827, ()(Y.l
220
ESSAYS ON I:'IPIAN ECOXo:'>lICS.
Tilt' aWl'ngp per hparl tlC til" Population of ('ul-
til'll ted arf'a i" one amI a half ,\"l'f'S in Gllzerath,
one and fOIlJ'-:iftll' A('I'f''' in Konkan, two amI a half
A(')'t'" in ttle ])"('(':111. two awl thrpe-fourths Acres in
Karnatic. and two and om-tllin] Ael'Ps in f;inct.
TIll?,,, figlll'e:l g'il'p for thp l'rp,idt'lwy, lIll average of
tllO ,\,'rp,'; of cnltil'att"\ land 1'''1' liP,,,] of the Popu-
lation. or tt'll ,\l'I"" 1"'1' I,,,,') of eaeh Pt'a,ant
l'ruI"rif'tor's t'aIII ih', As 1'1'0',((,(1., am hit lanel ayailable
. ,..,
(,n' (,llltil'ation. it i,,; ahout ti",' UPI' ('pnt. of tllP
(,llltil'<ltet/ <Il'Pil in .\IIII1P(lahac1, tt'11 IIPr eent. in Kaim,
ahollt tllirtY-'E'IPll ]"Pr "PIlt. in l',\lwlt :\Ialmls, four }>Pl'
<'<'Ill. in Hroll('k 'Ill'\ nin(' per CPlIt. ill Snrilt, the average
fol' thf' Diyi,jon hpillC: nille 1'f'1' ('Pllt. (If tlIe cnlti\'at!'f]
arpa. 1ll thp )\()llkan. tlli" lllar"in i" Ollp lmd a
,-
1"llf I"'!' {,f'IIt. in I:atnagiri. t\\'(II-f' !,pr ('ent. in Tbmla.
f'igilt pel' (,"lit. in Kohl>:1. and neal'ly twenty 1'f'1'
('pllt. in Kana)'a ; tlJis last figllr" "ring's lII' tl,P
for tl.t' whol" IJil'i,ioll to ll"arly t"ll [>t'l' <""Ilt. [11 the
Dpl','all, proportion of Arablt' to l'ulti\,Atp<! land 1<
tWt'nty-fonl' Iwr cpnt. in Khanc\esh. fi\'!' l'pr cpnt. III
X"sik. 1'0111' IJer ('ent. in X"gar, Ie,s tllml ol1e .pPl' ('Pill.
ill ]'()<)lla "11(1 SlIol"}>II1'. a\l(l ahont. (llW 1"'1' l'ent. ill
l"atRl'H. ThE' H\'pragp for tllp wholp p('('an is ,f'I'PIl
lwr ,'pn t . 'I'h Ps!' sa III P I Jl'OPOl't i on s a 1'<> Ii IP ]lE'1' ('I'll t.
III B"I",'nlllll, ;lUrl tlll'pp IJPl' ('pnt. ill !JnrWAI' and
Thp 'WPl"l,C:
P
f'"r tIl" wllfllp l);I'i,;on IS foll!'
IlP)' ,o(ont. In Sind tIIPllllI'lllti\'ah'd a)';Jbl, landlnr,!;!'ly
exceeds the t'ultilated laml ill Karachi. Hyrlprahacl
and Shikaqml". The averagp fOl" thE' whole
is Dearly nilll"ty PPl" cent. It will hp "PPll frolll t11e81"
details that. exdnding; Sind. tlIPrp i, 1l0t much 1'00111
I!'ft for extendpd I"\Iltinltioll pxc'ppt ill Pall('h .'Inhals
and Khandesh, awl to a slIlall ill K:mam ane!
Nasik. In Sind these conrlition, are rt"rE'rsE'd. III all
thl" older and ,ettlt>(l District" of tl,p l'rt'siclenc\", th
p
Agricultural mlh,t, hplIC"pforti.. I"t"sort C"llipt\y to
intensi"e cllitimtioll or impro\"Pll\ellb. As it i,. nhout
one erore of the Populntion lIIanagp hanly
to support themsel VPS upon thE' yield of about four
('rores of Acres, including fa I low amI twicp crol'l ,p(]
lands, and haY!', p-,<cppt in :-;ind. Khandpsh allll Palll'];
:\h,1 III I", Ips,; than tiftE'P)] Lakl" of arahlt" lnnd to fidl
hack upon for pxtpnclpcl cultivation. Tltp"p figurt'
reslllt, I'reSl"llt n I"E'I")' dnrk future ii, looming ht"forp
om "ision, if Olll" chit"f dpPPIHlpllce wt"rp plnc,t"d on
pxtplHJ. .. d cultiyation, as the only for f'IlI'l)ly-
ing the want" of onr il1ereasing l'ol'lIllItioll.
The only eseape from this (lallg''''' lip, in ti,e dirf'('-
tion of the gradual trail sfonllatioll of tlte ("bid"
of our livelihood, am.l tlte growth of all L'rhnn allll
Industrhl Population, in other word, the rise of Towns
or Cities. A CltI"eful examination of the
results furnished by these Census HE'l'orts 8ati8fie!; us,
that there are indications whil"h proH' that ;;ueh a
222 0:> I:> III A:> ECOl'l"O)trCS.
change is opl'rating strongly in our fll vonr. Definiu"
"
fI Town, as a collection of over th'e thousand inhabit
allts, it appear" (1) thflt there has oe!'n II large
increaHe in the lIullIller of our Towns, and (2) that the
incrl'ase of the Town population has been greater than
the increase of the Hural population. In 18i l, there
were in the twenty-three District, one hundred aud
,;eventy-eight Towns, exeluding the City of Bombay.
with a total poplIIIltiOIi of 2.134,-U9. In \881, il
different principle was adopted, which did not accept
the test of Population as the hasis of dj,;tindion, aud
places below five thousand in Population were
included, and twenty-eight places with II Population
.exceeding tiYe thouSIIlll1 were exelnded, from the
definition of giYing IIH the result one hundreU
and sixty-five as the number of Towns according
to the Census of that year, with a Population of
2,925,190 inhabitants. This unneee:<sal'Y refillelllPnt
was (iropped in the last Cen. .. ns enumeration, and
fll'l'lying the old test of Population, it was
that till-re were in all two hnndrell and thirty-one
places which had more than five thousand inhabitants,
and which might, therefore, be regarded a8 Towns.
the figures for 18il with those of 1891, it
will be from the following Statement that all the
Divisiolls except Karnatic showed an increase under
thi, head.
'fll'F.:iT\ lIF.rIEII' or' CE:'ISl'S STATISTICS. 223
___ ___ ,I 8,[ of To WII
( i Ilzerath
Konkan
1)('('('&11
h'al"natil'
Sind
('i(\' of BOlllhuy
Totul
I
18m. 11'71. 1891.
:3;,
46 665,Rr>6
26 :lO :1 I fI 3!17 283,292
6"
"
!l6 957,49lc1
{'1 3,1 H 2.268 387,86.3
!I 2;. I fI(\,4:11
'" ,_ ___ __ ___ _
1 17!l I 2:l2 2,77';,1<22 I 3.458,b6!!
Th(> number of Towns has thus increased nearly thirty
pel' l'pnt., wldl" the PopUlation of Towns
all inerl'a,!' of Ileflrly tw(>nty-th'e pel' c(>nt. The total
illcrea,p of tit .. PopUlation in twenty has been
ahore, to ha\'e b(>(>n about ,ixtpen pel' cent.,
and it is thus plain that tltere is It slight t!'ndency
inclining the scale in favour of erban over Rural
mereas(>. This last appears to hfl\(' hePII about
fonrtpE'1l ppr cl'nt., ti,!' actual figuflo's Iwing 13.553,962
as against 15,398,445, as the Population of the
Blual tracts in 1871 and 1891 r(>sl'eetil'ply .. So far,
the figures afe not nnsatisfactory. TIll' jJPrcentages
of the Rnral and Urban population for the sewral
large Vi according to the Ct'nslls Ht'l'orts for
1871, 1881, and 1891 will be Reen from tIll' following
f-'tatement.
224

(iuzcn.tth ...
Konh,an
Dec('ttll ...
Kar'lUktie .. _I
Sind """
1872"
--
l
:rbftll"!
Ruml.
-21
,
8
\l:!
13"8
87-1
Ii) I!.j
!l 91
Ill!'!.
I
18Hl.
l;rban"I
Huntl.
!
rrhull.! HilmI.
I
j !"ll ""IJ'l
I


\1 fIl
8"'"

14":1 F:I'i
I;)"{ 8{"6
12"2

)
13";,
10"7
,
i'n"3
12"6 8N
The above Statement shows l'lpiuly tbat the pro-
gre'>; is Yery slow aud not n'ry uuzera'h
n.'t<lins an easy command oYer till' othE'r
and no District in that Division ('l>llles nl' to tlle len'\
of Ahmedabad, whic-h bas tWE'nty-11l"E' per CPIlt. l'rbrlll
to sev<'nty-fivp per cent. Hnra I poplllatioll.
The Sind figures are more ho]>efnl, ami tht' Deccan
also appears to 11<, slowly but sllcce:;sfuJly struggling
against ruralizatioll. The Karnatic Diotriets, huwever,
do 1I0t alJjJear to have yet recovererl from thE' "hock
tilE')" sustained during the Famine. Taking the
sewral Districts in their ordpl", while Poona, Dharwar
and Karachi show large advances in the direction of
urbanization, and Ahmedabad, Broach, )iasik, BijapUl"
and Belgaum show slight ad in the ,illllP
tion, t<'Il Districts, Ratllagiri, :-:;urat, ThanH, Kolaba,
Kanara, )iagar, Satam, Thur and I'at"kar, tlie Upper
Frontier, and Hydembad FllOw slight decline, aud
Kaira, Panch Khandesh, Sholal'ur, and Shikar-
pur, show decided rleeiine in the erban elemenbi of
their Population. E,"en in the Districts which show
TWESTY YE.lHS' HEylt;\\" m' CElliSt'S STATISTICS. 225
better the ,;o-callt'd TowIls arp only larger
"ill ages, and are wanting in thp f'ssf'lltial t'len1f'nt of
industrial acth"ity.
partial and not very strongly marked tf'ndency
urbanization j, also <lttpstf'd to by tIll> figurt's
which show the rplatiw proportions of of
different ,izes and Popu]Htion. Excluding Sind and the
City of Bombay, it Ml'lH'HI"S frOlll the CelJsus Upturns
of 1881 amI 1891 that, while the proportion of
Yillages inhabited by les,; than five hundred persons
was 65' 5 per <';>nt. in 1881, this proportion f",11 to 60
per ('eut. in 1891. The proportion of the class of
Yillages next above it, with a population, ranging from
five hundrt'd to one thousand wail 21 per cent. in 1881,
and 23 per cent. in 1891 ; the proportion of the
next above it, with inlw bitants ranging from olle
thousand to one thousand and five hundred, was 9'7
per cent. in 1881, and 1l"3 per cent. in 1891; of the
das,; next over it, with a Population ranging from two
I housand to three thousand. the proportion was 2 p .. r
cent. in 1881, and 2'7 per CE'nt. in 1891; and of the
highest of all, with Populations ranging from
three thousand to fin- t the proportion was
1'3 pel' C(;llt. in 1881, and 2'6 per cent. in 1891. It
is not g .. nerally known, hut is none the less tnIE', that
the proportion of Urhan to Hural population normally
stands higher in this Presirlency, than in mOEt of the
other Provinces of India.
226 ESSAYS o:\'
Of course, it must llP notpd that the residents of
Urban Towns, as defined abo\'e, are not all really
Urban, in respect of t heir profession or source of Ii ve-
lihood, and on the other hand the residents of Rural
areas do not all of them derive their livelihood from
the land. It thus hecome;; necessary to examine the
Stati:;ties about the occupations of the people giwn in
these Census Reports. The Census Classification of
Occupations given in the Report of 1891 departs so
materially from the principles adopted in the two
previous Reports, that no fair comparison clm pro-
perly be made between their results. Both in 18il
and 1881 there was a large class, nearly fifty per cfOnt.
of the total Population, who, being dependent on other
persons. wpre retnrned as having no profession or
pation. This principle was not followed in I8!! 1,
when all these dependents were counted as forming
a portion of the class to which the male or female
breau-earner, on whom they depended, belonged.
This appears to ns to have been a perfectly wanton
innovation, and even if tlwre were some apparent
advantages in the new classification, the Report ought
to have furnishen column8 of Comparative con-
trusting the results of 18tH with those of preyious
year8 on the old basis.
In the absence of Comparati Ie Tables, we can
only prl'sellt the results separately. In 1871, persons
employed in Gowrnment and other Public Service
TWF.:>O;TY YEA\U;' BEYIEW m' ('F.:'iSl'S STATlflT!('", 227
\\'PI'P 184,332, and form I'd ]'1 ppT cpnt, of thl' who}l'.
'['hI' absorbl'd 185,340 and were
'8 per ('enl. of tht' wholl', Thosp, who pngagpd
:"PfI'il'P, wprl' 281,216, and w(,l'e 1'7
ppr ('t'nt. of thp whole, The AgI'icuitnrai Industry;
including: tiJp eare aut! hrl'ed of CaUl1' lmfl l'Il I I'PP, was
f'lllowe<i by forty Lakhs, who tilll' ('onstitutpd 2.j,'7 ppr
cent. of the pntirl' Popnlatioll, Thosp who wpre
gagprl in Trane /Ind ('ommel'ee Wt'l'f' ahout four and a
half ana were 2'6 per ( ... nt. of thp'll'hole,
Artizan, lind ('aUlp to about twenty-
two Laid,,,, and werp 13'5 per (,pnt. of the I'ntirl' num-
Iwr, All thl'sp madl' up forty-five pl'r cpnt. j
and tilt' l'n()('cllpit'd ami rlependpnt Classes came lip
to ninety Lakh,;, bping fifty-Ill-I" per cent, of till' total
PopUlation, In 1881 Government Puhlie Sl'fI'ants and
thosp who ,,'PI'I' employed in the Profpssiom. madl'
up 1'.5 per cenL, thosp rendering Pprsonal Service
wen' 1'1 pl'r e ... nt., anri the Commercial and Trading
('lasses rppl'psented 1'2}1N cent, The Agriculturish
werp thirty-two I'!'I' cpnt" till' Industrial and Artizan
('lasseH wprp fiftl'en per ('ellt" and the Unoccupied wpre
forty-nine IK'r cl'nt. of tI,e whole, In the ('1'118118 of'
]891 the hpading of enoccnpiPfI Classes was discon-
tilllwd as a sl'paratl' Class, and we find that sixty per
cl'nt. of the total, and sixy-nine 'per Cl'nt, of thl' Rural,
populations Rre shown to be Agricilltural. The Artizans
and Handicraftsmen,' or the' Industrinl Classes, are
228 ESSAYS OS INIlIAN ECONo)IICS.
shown to be twenty-one per l'f>nt. Their proportion
is higher in Towns tllllll ill the Country. Thp
two between them absorh eighty IIPr Cf'nt. of
the Population. The Tl'lldin.!.( and Commereial Classb
are shown to be 4'6 per cent. in Towns, and 3'5}'er c .. nt
iu the Country. Those who rendered Personal and
Kervice are shown to be 2'i per eent. Those
engaged in Publie SNvice appear to rn. 3'B per cent.,
and th .. Profes>,ionals 3'3 per {ent. If we haY('
percentages, so to exclude the dependent POl'uln-
tion, mostly wom .. n "nd children, we shall 111Til'f' by
a rough guess at what these proportions would 00
under the old plan of classification. Ti,e old propor-
tions of' tho"e engaged in Agricu\tur .. and Handicmfts
do 110t thus. to bl\\'e heen "lm;ihly alten'(\ in
fal'our of the latter Clas;;e, ; and the SlllllP r .. mark holds
good of the Commercial ami Trading Classes.
seems to he the genera I iml're;;:sion left on the mind by
a study of these figures-into the details of which, WI
cannot now afford to enter at greater length.
The l'f'latillg to Occllpied Housf's arp
also vitiated by the adol'tpd at the
enumeration, of exdnding: CnocC'upied Homes from
the ('enons definition of a House, nml the omission to
classify HOllR{,S according to quality, ,,1Ii.h llUpmpt
wa' made in 18il with some SHcces".
The CemHs of l8i 1 showed that tIle tolal nUl11bt"r
01 Houses in the Bombay Presidency was 3,254,540,
TWEI"TY YEAHS' HEnRI\" CENSUS STATIS'f1C", 229
out of which about 336,629 WE're of the Better Cla"s,
and were o('clIllied by 1,885,910 pE'l'ROnS, Tlte
Hbout ninety per eellt., 2,917 ,9ll, were of the Inferior
,;ort" anrl wel'!' O('('IlJlied hy 14,342,842 persons.
It safe basis for fixing- the relnli,'e num-
her of om and 'la",e", whidl ur;- as eight to
ninety-two of the Population, In the Deccan Diyision,
induding Karnatk, the averagf> lmmher of persons per
House waH 5'43, in the Konkan it \\'ltR ,j'i, in Guzefllth
it waH 3'6, and in \'.inc\ it w,'" '9 per 110mI'. The
'Ill'f'riorit.vof Guzerath, in ti,is respect is further
hrought. ont h;,- tIlt' fad thaI ont of thf> Hettel' Class of
Houses fnlly fiftY-E'ight Jlt'r ,'pnt. are found in the
tTuzerath Division, Tilt' De,'eall eOIl\t's a long way
hellind, and Konkan and :-;inrl follow at no grE'at
Ili"tanct', The Cemms ()f 1881 the total nnmber
of Occnpied Honses and otllf'r Bllilrlillgs to haw beE'u
3,605,812, heing an incrE'ast' of two and a iUllf Lakhs
Oyer the figure for 1871, hilt of 2,822,731
HOllseH were occupied. Bt'tw(>(>ll 1881 lind 1891 the
Divisions showed ti,e lllCI'(>as(>s.
Name.
11l11i ,
----
\ HOII.c.
Homa.',.;
in
in

( 'oulltry.
( :nzcrllth .. ,
I

Konka.n .. , 42.46:. 4,:lO,H4
Deeco.u .. , 1,2R,01l1
Karnnti(' .. ,
M,4RR :l,7f),ft47
Ijind .. , 42,22.1 3,m,3;)1
Boml)ay City
28,:l10
......
Hon",eH
In
TOWill\..
,

),667
1,R7,4'6R
6H,47:.
64,RO+
:J6,!1[.9
I
Incl'par-;e
Pet' Cent.
HOUIoj(>K I
In In
-
in '
Town. Conn
COlllltry.
try,
'
---
-
,\36,20!l
HI
7}
4,00,320
11 14
1',61,770
47
2:3
4,46,Sll
27!
17
4,;;2,216
53
j,'j
......
100 ..,
-
230 E:o.SAYS ON
Here also, nt'xt to the Town and Island of Bombay,
Sind head8 th" li,t; Guzerath, while it is absolutely at
thl" hl"ad of the rest of tilt' Presidency, no pro-
gress. The Deccan Districts take a high rank, and
Karnatic amI Konkan come last.
'VI" hal'e now passed under reYit'\\' all those points of
Ull" t'numeration which han' a bearing upon
tllt' Economical condition of tllt' Country. The Statis-
tics relating to Sex and Age and Civil Condition,
Education, Hl"ligion, Languages, and Infirmities are
intl"resting in thelllseheR, but they :hal'e little or no
direct bearing upon tIlt' Economical 'Well-bl"ing of
Ull" Population, and must, therefore, resist the tempta-
tion of entl"ring upon a con sidl"ration of these matters.
'" e hope, howl"l'er, to take tlwm lip in a separate boue
of the Journal.
IX.
LOCAL GOVERNMENT IN ENGLAND
AND INDIA.
""'" ............ .
N
0\\' that the :;uhjE'd of Local l:;elt:'Government has
been raised from a mere speculative
to til(' of t1lP oue great problem of tilt'
day, which absorbs general attentioll, and taxes the
highest statesmanship of the Rulers, it cannot fail to
be of interest to review the subject historically in its
o.evelopment in the Free and Self-go\'erne(! Communities
of Europe, where these Institutions have been long
naturalized to the soil, and ha\'e influen""d the 1'0Jiti-
eal and eeonomi"al in various forms allll
degree,;, so a,; to serve at Olwe aii a warning and an exam-
ple to this Country. The Cobden Club has published a
series of e,.;says on tllf' subject of Local Government
and T1Ixation in England, Scotland, Ireland, Holland,
France, Russia, Spain, and Germany, and m the
English Colonies of Austnllia and New Zealand, Iwd we
propose to summarize in the present and
numbers the more important of these exhaustive
re\'iews, and discuss the Indian bearings of trIP posi-
there laid down [tun the analogies suggested by
our own Local Institution, of and legislati\'E'
origin,
232 ESSAYS ON INDlA:'I ECONOMICS.
Enghnd deserredly enJoys the foremost rank in
resped of the great historical antiquity, and the un-
broken continuity of its Local Institutions. )Ir. Rath-
born, in a recent number of the Nineteenth Century,
has stated on the highest authority that in England
alone Local Taxation had reached the lllagnifieent total
of fifty-fil'e Crores of Rupees a few yt>ars ago, a revenue
almost as large as the whole of the net revenue of
Indill. In this Country Ollr total
and Local Funds expenditme doe1' Hot represent one-
tenth of the Imperial pxpenditurE', while in England
the proportion is as high as two-tllirds of the grand
total of the Imperial expenditure of Great Britain and
Ireland, and if the English portion of this expenditure
is alone taken into acconnt, it may he fairly p;;timated
that the people 11.'; IIlnch on their Local
Government as they raise for th" public or general
expenrliture of the Empire. Thi,; singl!' fact will
clearly bring home to evl'ry on' tit" enormous develop
mpnt of tlw and function;; of Lneal Hoards in
English Borougl.s ATl(] Connties. Xonp of the other
c()lIntrip;; of Enropl' e;nn present more magnificent
totals of fPc"ipts and a more "aried expenditure, O\'
afford a mol'l' instructive fil'lrl for tlw study of loeal
rpsponsibility and power. As thl' dpstinil's of India
are now indissolubly united with those of England,
and that country furnishes the fountain source of
brain power lind initial energy of thp Administratire
Hody in Imlill, w" W tI.l' of
for (lUI' ,""r<> jllllllf'dillt .. study ill tltp follow-

It mlly IX' not".! lit thf' Olltsf't tlmt. "" far the
IIllit or I'X'III IM'Wf'I' is eOI1('f>rnf'd, II" c"untry
in Enrol''' ('0111,1 1\ more , .. If('ontai npJ ami
,elf"lIfti"ient or/!lllliZ>ltion thl\n thf' '''lIlllnU-
nity of In,lia, Tilt' ,litre, tl ... (rprrllan U(II(,
the l<'rI"u"h CI}/I1Ill'W#', th .. Eugli"h I),(,'i,." ,
In t,) tllf' Il1<lillll \'illagf>, Iwv('r
tht' full ind"I ... IIfI'lw" wl,i .. I, thp latt!'r
community f'lljoyPd in of old, 1'1,,, l'('ol'le of
this ('ountry, Ioow"\'f'r, did lint 111" ... ".,,1 furth .. r In
the ,\.. \'('101'111"11 t of ('i,'j" all/I ('''"1",,111:11 Iiff>, The
old Greek 111111 RolIIlIlI ''''Il'lluniti,, ,I", "1111'",1 their
f,d,II''', whkh
III 'II111P of the
Civiltt8 and IJemf)(J witll a luxl\I'iallt
Ix>en mrf'Iy "11\all<,oI, ,'x("'l't
of Italy, t I... fn'" I ",,'n' "I'
('I'I'JIl,lIlY, the
X .. tlwrlllllrl., 1111<1 :-;\\'itZ,'r1l1l1d, in 110" h",t rllI},,- ()f
Ellrol)l'l\n '1'10 .. (;r .. "k, allll how-
"1'1'1', hrokt' dO"'11 Illl1,pntJlhly ",1 ... 11 trip,l tllt'iT
"t IIITgp ofJ,(lInilmtiml", "",I it i" ill tl,i, .. dire,,-
liol} of th" or:':lIl1izlti'lIJ of 1.0(,,,1 gllilnl", anrl the
ine0r[Mlrat,inn I)f into J( 111 ,,\r .. r1;: nnd
aUfI tlw<I' latlt'r into COllllti," all(l lind
tl,p whl)lp- nnrl .... one :\'atimllll Statp, thnt tlof' ('01111-
hie,; of Enrol'f> 1\1\\'(' aelIif'\,pd tlo,il' rno"t Tf'IIl11 .. knhle
thE' 1II0rf' illll'ortllllt of these
234
ESSA YS ON IN[J[,\N ECONO)[[CS.
Statps, such as the British I"h' . .;, and the Colonips
and Dependencies of Great Britain, tll" United :-;tabes
of AmNion, and the German Empire, have sllccessfully
soher! the great problem of a Fedpmtion of Rtates
under sO\'P\'(>ign Congress Diet or Parliament, which
to speak, the coping stone of the f'rlifice. It
will be tim., tll<\t there have \)1'('1\ f01l1" di,tin('t
stagE's of growth in the history of tlws<> Local fll"titll-
tions, and the (Iiff,>rent of AHin. the old :Uerli-
terrnnean Rplmblil''', 1l10derll Enrope, nne! the ('ololliai
ElIll'irps of Enrol'P amI Americn, have each contrihutr,l
in their own way to the sYlllmetrical devt'J0plllent of
the little Parish unit into the great Confederacy of Stntes,
which appears to be evidently the dt'stim'd form of tllf'
fnture Political Organir.ation of the Human Family,
Uuizot has well obsen'ed, that in the primiti \'(,
conditioll of Soci!'t.y, wlH'u Statns, aud not Contract,
go\"prnpd the relations of private life, when Lnw
was and not Local, when Tribes, Cast!'".
and formed distinct groups, when intpr-
communication was (Iiftieult, and the central authority
was limitpd to purposes of foreign war, none but the'
Local form of GO\'ernlll!'ut ('ould lU\ \'e any pradical
exist!'nce. 'When these LoC'al Groups fire absorbt'd into
a Central Organization, it may. rE'gareled as a dis-
tinct advance in Civilzatioll. In the history of Local
Go\'ernment in England, it is necessary to bear thi,
point prominently in viE'w. Th!' Anglo-Saxon times
l'r .. .. nt the old featurps of LO('al (yoIPrlllllpnt in thpir
I'lI\'e"t form, IIttpncled. howel"-/'. with Ow;/, great dra\\'-
hack of II permanent tpIHlp,H'Y it, disintegration.
rt \\'as the "trong 1,,'eSSIIrt' of tl,,. ;iol'lll>ln Conquest,
whil'h fin,t, 1I0t withollt many eentllries of
,tl'llggle. l'hpl'ked this tendt'nl'Y. and hy lin infusion
of r3l'e" sowed the seed, "f th" gJ'pat
;iationality. The old :-;axoll dil'i,iolls of the eountry
1\'('1'{' ha"ed UP01l the Parish (tht' Indian MOl/de)
a" the initial unit. A firoul' of wade up
ti,t' Hundred (the Il1llian Tarf 01' Tashil or Peta),
of thl'se Hundreds iliadI' up the Country, the
t''1uil'lIlpnt of om H"vl'nup Zilla or Praut 01' District.
Hural :o;oeiety in old Englawl rpcognizpcl ollly tll'O dis-
tindion", the Thall(, or LHlHi-o\\'llers, and thp Thralls
or IHan". Thl' larg .. Tlllllles lI'"ce thp Chief m('n
of their Yillagpo, with a hody of Fn-p Tenants, and
a largt' numl)!'r of :-;111"" d('pendellts, The Ipading
Thanes lJIet in ., til(' Town-moot," ami elected thE'
Town &eve, 01' I'atpl. 'I'l,,, Towll Hl'el'e And the
Ipading Tllanes govl'l1Jl'o tlwir littlp Yillage Republic
in all local rl'pail'l'fi tll!'ir ami hl'idges,
petty off .. llePK, 8ettlt'd their petty civil dis-
putt's, their to I'll)' judicial fines,
and executpd COlllllliHsiOlIS of inquiry issued hy the
Central Authority, 'l'hf' Ipadinl( 'l'h all es spnt thf'ir Repl'e-
to" the Hllllurpd-lJIoot" or Loeal Boards,
consistpd partly of slleh Hern' .. "entatil'es, and
partly of the Parish Priests and other Fune!ionaries
Hlll! this body had large fiseal, jIHlieial, nnr! f'xecllth'e
powers. It levied Assessments illlposed by them-
or by the Central Pow PI', it (li'l,ew;('cl Civil
all,l Criminal Justice as Jnrylllen and Honorary '\hgis-
trates, under the l'fPsi,lelll'Y of tlip .. riff of the
Hundred, the Deslllllukh or J)p.sai of tllp old Indian
Hevenue System. A group of th",p Hnnrlrpd, lllaLlt'
up thE' County, whil'h \Va:; the lItOSt illflllential cor-
porate hody, so f,i1' as loe<ll authority WiIS concE'rnp(l.
It consistE'cl of the ItE'prE'sentatiws of tllE' Hlillclrt'r1s
a.,sociated with thE' Bishop, and Earl who
l'E'presented thp Central Powpr. In its judicial eharac-
tE'r, the County Boarel, calle(] "the Folk-moot," hpard
11 I '[leal s frolll the Hli ntl re( 1 Co\\rt:;. This same bo(1 y
",:Is n.ferrl'd to hy tlw Earl or Lonl-Liputell"llt of tlw
('ollnty to BIll,t.''!' tl,p Inlld proprietor., for \\'iI", hy thp
H"y"l (tlll'lndian ('ollpdor) to n:;:;e" allfl
dne" alld hy tllP Bi,dlol' to I'Pg-llJ,ltp
Church lIultt('r:;. \\'"tpr-('Olll'SPS. wad" I1wl in
thp whole Connty \\'pn- ,nhjpet to its a aml it
had tlip :;ole eog'nizall('p of tlip of land
tra.nsfer:;. ()n rare nl:(,."joll", tI,t'sp Fnl k-lH()ots "pnt
TPl'rpspntati\'ps to thp (fraIl,1 COlllll'ils of thp .\"lItion,
called thp "TitenaO'emotps or BH,,,till"'s of th" wist'

Elders of the Taxp, \1'('I'P hnt fpw ill thosp
day,; !Ind not needpd; mpn rPIHlerp(1 amI pxa.dPd
1 ,p \'''lll a I "'n'ice" instead, both in WlIT nnd I'"ac('.
LOCAL GO'"EUX)!EYf IX E:'i<iLA:'ill I:'iDIA" 237
Ther!' werl' larg<' {'itip,:, and thes' were gOH'}"nPc\ or
rather they gownlPd Oil the nnnlogy of
til' Hundred. Till' meeting of tile Free' ;\len ill
cities ('omhined tllP jll<liehll aud administrati,"1' func-
tions of the Pari"h. tllt' Town and the Hundred :\[oot.
They sent, howewr, no to the ('ollnty-
1n00t. The Shl'riff for the County collected tlIP
a>sessed taxes ill thp'e Cities, anrl ti,l' first step taken
in the direction of ('idc Liberty was in obtaining
Royal Charter,. h\" which a fixed l'olllpositiou in
commutation of the 8hpriffs' uncertain dues was seem-
ed to thelll. "'hell t1,is payment was made, the
Killg's Officer did not interfel"l' with tire local authority
of the Town Guild", whi"h made thl'ir own Bye-law>"
and regulated thpir trades in accordance with the
I'xigPllcies uf Ion g enstom,:.
SUell, in hripf, were the main features of tI,e
distribution of lu('al authority amI pow!'r hefofe the
Xorman Con<jllest. The details ghen above l,resent
strange and contmsts with the
local bodies in Inclia, which it is unnecessary to
notice at length here, as tlwy will easily be recog-
nised by the superficial obsenel'. The Norman
Conquest substituted at first a Forpig-n Court and
)lobility for t.11P old Saxon Killg-s ann Oeoj'ls, but
left tht' territorial and 11)(">11 arrangements for the
most part undishuhed. The gTowth of ti,e Barons
under the Fpudnl System, howeWf, soon eclipsed
238 ESSA YS ON INDIAN ECONmllCS.
the 'plendol11" of old anel encroached lipon
llw t'ontinnity of the f'axon order of things. The
BaTons ohtained Fief:; and Granh oyer-ridin
o
' all
"
lOCH I powers find
of thf' oJ,1
they took up the place
nnd Ealdormen, lIud discharged
dntieg hy mean;; of ;;teward" or
TIl(' Towns g-a,'e lip their independence to seek
sheltpr lInder the l'l'oteetion of these pO\\'erfnl
Baron". The old Parish and Hundred-Moots IlPcame
the Baron;;' Court". and the old Free-Holders. noll'
re(ll1('ed tn the "btn, of the Ruon';; tpnants, di,-
the fnlldion" of 118;;e""ors. The long'-conti-
m1P(1 "trll!!,!!,lp lwtwef'n the Crown amI the Chul'ch in
the,e early fendal times resnltNI III the enforcl'll
absence ofthe Bishops ami Parish Priests from the""
new Courts. As these Ihmns aud thf'ir dqmties ,vert>
too powerful sllbjects to he dealt with hy the local
thf' Kings, t.hey grew 111 power,
appoint,f'(1 Cornmissiom of Pf'acf' and ('onsf'nators to
1l,;;"i"t the Sheriffs; tlwir on circuit to
eollf'ct tllf' fiscal burdens and Administer criminal and
l"i\"il Justicf', directed the nomination of Hig'h Con-
stahlf's and Parish Constahles for policf' rf'gulation,
an(l appointed Coroners to hold in'juests. The later
Plantagenet Kings, with a view to eheck the power of
the encouraged and It'galizpr\ the growth of
the Honorary Jl1sticf's of the Peace, at the great
of loeai authority in ti,e Countil's, and granted
I.OCAI. (i()\'EH:'IME1\'f IN E:'IGLAND AND INDIA. 239
E'xtending the lilwrtiE's of the
Burghs. The JusticE''' of tllE' PE'aee in of timp,
monopolized to themsplves the functions of thp old
Town anrl Hundrpd and County aTHI the Barons'
and 81,priff,,' Towns. ThE'y wert' large
tlw)" sat a,; II Full Heneh in the QUllrtprly
GE'neral 8pssiolls, alld singly or in twos in P('tty
:-;",;,ions, and disposed of miscellaneous offences
without the 1l('lp of a Jury. TIlE'y were the Guardians
of Peacp, and discharged the higher duties of an
Ol'g'anized Police hy helping the high and petty
('nn"tahlps and They levied Taxes with
the 1I,,,ent of local representatives for the rE'pair of
roads and hridges. TIHT huilt thpir own gaols, anrl
l'ro\'idpd accommodation a nd discipline for \'agran ts
ami inearcerated prisoner", and appointed o\'erspers
to superintend the dispensing of charity to the poor.
One of their hody was appointed Lord Lieutenant of
the Cminty, and had the charge of the and
this Officer was also entrusted with the charge of the
County HE>cords, and presided as Chairman at (1ullrtN
S('ssions. The old electi,'e principle of Saxon times
thus gave way in the administration of to
that of nomination by the Crown.
While this change was taking- place III the ('oun-
tipi'. the elpcti\'e principle underwent a
transformation in the larger Burghs or :\hmicipal
Towns, which had proved so u8pful allies to tIl' Kings
240 ESSAYS OX IXDJAX
in their with the Rtron". The City of London
took the If'ad in this nf'W de\elopment. The laro-l't
".
Cities purc\w.'erl their fre!'dolll by paying itl'n vy fines
to the King. Bi,llOP or Baron who oVNlonled them.
They ohtaillf'd securing to them th(> ri"ht of
"
electing th .. ir own .:\Iayor, and Justices or
They further seenred an immnnity from the jurisdic-
tion of Baronial, and \'\'pn Kin.!),"', Courts for their
Citizens. Th .. y }>nrchas\'d by a lump or commutl'd
l,ayment fr .. edum from all liahility tll the :';heriff's
jurisdiction in the matter of levi .. ". Th .. y
ohtained the right of sending Rel'resentatiYes to
I'arliament. These great power,., so s\'cUl"ed,
were monopolized, howe\er. by t.he leading Citizens
in their Guilds and Town Councils, and the Free
Citizens of Saxon timp, grildnally lost their right
of citizenship in their own boronglt administratioll
Self-elective Boards acting in the Conntip,; 8R J
of the Peace, and nOlllinated by the Ring-, and in the
Towns as Town CoullC"ils, and nominated by the Lilwr-
ties and Guilds, monopolized all loeal powers in
England. These gn'at changes were contf'lrIl'ora-
llt>OUS with the Wan of the Roses which the
powers of the filctiollS Xohles, and the Reformation
which destropd the powers of the Chureh, and p:wed
the way for the Tudor Line of English KiugR, who
admittedly wielded more absolutp. powers than their old
Saxon or !'ven their great Planta.!),"enet prf'decesHor;:.
LOCAL liO\'EIl:>(ME!,(T 1:-; E:-;(iLA:>(O MiD INOlA, 241
Thi> next p"l"i
r
) I witl1e';';l'J ul1,Il'1" tlJP ;'oy!'-
the deelinp of th ... "'ereign',, arbitrary
anrl tit!' firm !',.;tahli"llIfI!'llt of liberties,
In respect of L)eal (JO\'ernlllPllt, however, this p!'riod
i, I!'ss e,'entful. Tit... Kings of England, ha\'ing BUC-
("!'ed!'d in their ,.;tmggle with tlJP nobility. soon found
that the city Burghers and the Protestant Knigltt, of
who had prond so useful to them, would not
go any further lellgth in exalting the prerogatin>s of
the Crown, and iu of this discovery mis-
understandings aro,e, am! culminated in the attempts
of the Kings to rule without Parliament by the help
of Standing Armie,;, The Burghers and Knight"
proyed stubhorn in t bpir resistance, and after the
especially under James II., it was deemed
hpst to rescini their old libprties. and issue new Char-
ters with more re,;tricted powers. The Town Council
.T untas were brihed into support, and new
were issued to whom many of the duties of town con-
and improvement were entrusted. Th!',,!'
att!'mpts were of course, facilitated by a decline of
the public spirit and an increasE' of corruption in
thE'se close Boroughs. While th!' lib!'rties of thE'
Towns were heing thns circumscribed, the authority
of the of the P!'ace in the Counties
during the same period, still further RtrengthellPd.
They were allowed statutory powers to levy rat!'s for
bridges and tolls, to build highways and public roads
16
242 EISSAYIS O:-i I:> PIA:-i ECONOi\!ICIS.
lunatic asylullls, and gaols. Altogether, by the time
that the Reform Hill of 1832 was passed, Local Self-
U-overnment had ceased to be popular in the old Saxon
or early Plantagenet sense of the word, both in Towm
and Counties .. Power was centred in the hands of an
oligarchy of rich land-owners in the County, and of
rich merchants or traders in Towl1s, who
their functions not so much as the representative" of
the tax-paying public, but as nominees of the State.
or of their elose U-uilds.
There was Hms complete justification for the radical
change which has been inaugurated in the matter of
Local, Govemment during the last fifty years ill
The old traditional organizations Ilad lost
their touch, and had become oligarchical monopolief:,
wholly incapable ef securing publie confidence or
undertaking the discharge of new and varipd
duties, which the necessities of a growing Ci\'ili-
zation rendered . indispensable. ::\ince 1832, J ,ocal
y{)vewment has ,heen extended by
Parliament in various direetions;
Hoarrls have heen created with
nUlllerous Acts of
new Bodies and
vast powers, half
representative and half oligarchieal in their constitu-
tion. The divisions of Parish, Hundred, and County,
han' \OR<t to a great extent, though not wholly, their
(li!!tincti.y.(" features, and in their place have bepn
RubRtituted 1'001' Law Hig'h "'ay Hoards,
Hoards of H!'alth, School Hoards, and a hORt of other
LOCAl. (;OYER:\)n::W J!I" E:\liU:\J) .AND INDIA. 243
Bodies, with jurisdictions overlapping and conflicting
with each other. The Pari"hes, llOwe\,e1', continue
still, for some Ecclesiastical and Board llUrposes,
to be the lowest unit of 'organization. Each Parish
has its own Church, its own Sehool anrl Burial (iround,
assesses its own rates in Yestry "l .. and collects
them through its owu Overseers. The ei\'il Parishes
in Englaud number 15,416, and consist g'enerally of
"ingle Yillage,.;, but some large Parishes represent the
wlIrds of Cities, while others include several
The old powers of the y of maintaining its
Watch or Police Constable", lind of repairing its high-
\\'l1)'S, roads aud bridges, amI maintaining its Poor,
hal'!' heen transferred to the "llperior l!nions and
Hoards which often include llIany Parishes. Superior
ill authority to the Parish comes, as stated 11I)O\'e, the
IJnion of Poor Law Guardians, first organized by the
Statute for the Relief of the 1'001', hut SubsPrplently
enlarged by the addition of other
There are six hundred and forty-seven such l'nions in
England, mostly congergated together ronnd
:'Ilarket Town, with its neig'hbouring Hamlets or
twenty-three of whieh on an ayemge are
ineluded in every Union. Another superior eentre of
]lower is represented hy the Petty Sessional Divisions
of Counties, which di\'isions are about se\'en hundred
in number exclusive of and each of theile
divisiolls has a separate Commis;;ioll of the
244 ESSA YS O:\' I:\, [)I A:\, ECO:\'O)UC".
"ecomlary dili,ion rim'" not ('OlTPSl'oud with tbe
Poor Law euion. Tilp (ountips still rptain thpir old
tprritoriallimits, but tllany of the old powers of County
Magistrates hal'p bpPll tranHfprred to It great extr'nt to
other bodieR exercising It partial or total indepelldelll'
p
,
As the law stand" at prei'ent, thp Local (;OI'E'ru-
rnent of each County, as such. is H'sted in a Lonl
Lieutenant (who is also a 01(,8t08 or Keppel"
of the Records), a High Hhpriff who is tltp reprp,pnta-
tile of the superior Ci"il Power, It COlIlmission of
Justices nomillated by the and a ('lprk of
tltp Peace appointpd by the Keeper of tbe County
Record:;. Thp Lord Lit'utenant is supposed to be tilp
head of the :\Iilitia, while the High Shpriff i, t\ip
represpntati,'p of ci"il functions. and superintends tllt'
election of Knights and ('oroners, and executes the
writs and processes of Judicial Courts. The J mtiee"
of the Peal'e are mostly Land-owners, and discharw'
honorary functions witbout pxppeting any payment.
Thesp functions are of Yflrious sorts. In their J ndidal
capacity. they hold or General Hessions to
hear Appeals from the of
and appoint COHlIllittpes of their body for YarioW'
AH singlp III Petty
siom', they disposp of petty cases, and commit
the graypr sort to the Sessions, which dis-
po;'e of them with thp hpj]> of a Jury. Certain of
the mOfP heinous are tried at thp Assize,
LOCAL (iOYEIC'O!E:'IT 1:'1 E:'I(;L.\:'ID AXD INDIA. 245
hy the ('omt Judges on Circuit. As
('i\'il JurlgP';, the .J n"ticei; of tilt' Pt'ace pos"ess at
prp,.;put no power, as tht' (lutips of Couuty Courts
in thi,.; of east',.; h'1\'p hepn entrusted to the
,Judges who dispose of Rmall Causes eases.
The :'Ihgistmteil are also the \'isitors and supervisors
Ill' thf' (hoI" awl LIl1l'ltie A"ylnrn .. , They still retain
the charge of Policp of the County, and appoint
the ('hipf Conshbles and Vi,tJ,iet Ruperintendents.
Tllf'y le\'y the County Police mt!', and the Jail and
1.unatic Asylum rates, through their Finance Com-
lIIittee. The 1[agistrates sitting together, and in sOllle
aeting singly, have the power of renewing and
"ll"l'('nding' Li<]llOr Licenses, and of fixing the places
and rpgnlating the hour", where and when the shop"
might he opened. They haye the powpr of l'l'ohibit-
in" the movements of Cftttlp in times of ('ftttle
"
Plague, All these, and many other miscellftneous func-
tion", ha\'e been entrnsted to the Jnstices hy \'arious

There are othpr duties in which the .lllstieeSI
as nOlllint>ps of Governmt>llt, art> marle to shtlre the
power and responsibility witb of the
Hate-payer. The most illlportant of tllese functions
Ii, the regulation of higilways. The Honorary
:'IIagistrates are px-officio :'IIeJ)11JPrs of tht> High v.
T
ay
Hoards, which eontain he"irlE's It majority of the
I'PpE':;entativt':l of Tax-payers. In a similar manner
2-16
ESSAYS O:'{ i:,{DIAN ECO:'{Q)!ICS.
tltey are C'x-officio ::'IIember" of the Boards of
Poor Law Guardialli'. The Poor Law Boards
afe in principle eleded by the but
the Justices of the Peace, residing within the limit"
of the Union, are ex-officio ::'IIemben; of such l'nioll
or Boards. Appeal, from the assessment of tltesi'
l'nions or Hoards lie to the ::'IIagistrates ill l'etty
and General Sessions. These same Poor Law l'nion
Hoards have been also constituted Hoard" of Puhli('
Health, and the .Magistrates are ex-officio
of the Boards, and act along with eleeted Represen-
tatives. The I'-\chool Boards, on the other hand, arf'
entirely composed of member:; elected by the Hat,,-
payers. This multiplicity of Boards, whose jnrisdictiom;
overlap one another, is one of the most distinctin'
features of the existing
Government of Counties.
local arranof'llIpnts for tlw
,.,
Tltough they imply a con-
siderablp waste of power, ami foster \"arious oULP)'
abuses, they are the outcome of a wi"e cOllserYati,qll
which seeks to retain its hold on the past, whill'
\naking concessions to the needs of the present, and
they snit the plltch-work instinct of practical English-
men, who have no admiration for theoretical sym-
metry. [n the Poor Law l'nion a, also ill
the Boards of Health and Impro\"ement, the l'rineil'le
of proportioning ,"otps to the mlue of rateable pro-
l)erty is followed, while in I'-\chool Boards. tltf' praetiep
of ("olllulati,"e ,"otin'"
,., allowed to secure 1I fair
LOCAL I:\, E:I"UI..l.:I"D A:I"O INDIA. 2cl7
representation of the minorities in large Constituen-
cies. All these "vanous Boards are kept under
{'ontrol hy the Home Department, which possesses
extensive I)OWerS of arrano"in
o
' and alterin
o
' their limits
:--,
from time to tilllE': in case of default the Law
allows the ahsoluteinterpositionof thf' Home Secre-
tary, en'nto the extent of a temporary
with a view to enforcE' obE'dienC'e.
In the larger Towns anc! of which there
are two hundred and twenty-se\"en in England,
the Exercise of local power ii; veste'! in two
different bodies. These are first, the Commissions
of the Peace, which exerC'lse jnrlicial powers
on the analogy of the County :\[agistrates in
Ueneral or Petty Sei'sions. Where the City has out-
grown the limits of effecti\"e control by ,"oluntary
agency, a Recorder, who is a paid Magistrate, is ap-
pointed by the Crown, and is paid by the Borough,
and exercises large" criminal powers like our own
Presidency Town Magistratps. Besides their criminal
work, these :\Iagistrates grant Licenses for the SaIl'
of Liquor, and tlwy also snpC'n"ise the Borough Jail.
The larger Boroughs appoillt anrI pay their own
Police. The chief adrninistrati\'e body in these
Boroughs consists of the Town Council, Rnd is made
ui' of the :\,Iayor and Aldermen who are elected by
the Town Council, and the Town Councillors who are
('I('cted by the resident Burgesses, and hold office for
248
ESSAYS OX IXDlA:-I ECO:-omnCs.
thrpe ),pars. TIlt' :\1ayor and Aldermen are ex-officio
Justices ane! ane! thus form the connect-
ing link with the Town and :\Iagistrates. The
Town Council has the power to levy rates and appro-
l,riat.- them to the purposes of Loc'll Government.
En'ry large Town in England has to pay a "adety of
local rates, a Police rate. a Poor Law rate, a School
Board rate, a Jail rate, 11 Lighting ratf, a "Tatpr
rate, a Conservancy rate, etc., amI these rates arp in
some places, like Birmingham, eomolirlated into a
genpnti BlJrongh ratp. Tllp Town Conncil maintain,
its O\\ll :Uagistracy, its Police foree, its Gaols, Asy-
Inms, Poor House,:, Baths, "Tash-honses,
Lihmri,", :\Iuseurm. "Tatpr "Torb, Hospitals, Parks.
Cemeterips, builds and rt'pairs, lights ann waters it,;
streets, takps carp of its Sewprs ane! Drains, anll
Slaughtpr Houses, Gas SUl'l'll'. I )ffensiYe Trade,.,.
Smells, :\Iarkets, etc. The mnItil'lieity and the bnr-
(l<'n of thesp charges will easily he understood from
:\lr. Rathhone's accoullt of the local finances of
Liyprpool, which Borongh raised from rates nparly
fifty Lakhs of Rupees III 1871, and supplemented
these receipts witll the Il1come of its own Corpo-
rate Propert.y, to the pxtpnt of tbirty Lakhs morf'.
Excluding London, two hnndred and twenty-three
Borouglls in England and "TaleR spent a sum of
thirty-three Crores of Rnpees In 1872-73, derived
from retes and the income of corporate property,
LOCAL J:>; E:>;(iLAND A:>;D I:>;DIA. 24!l
and they Ilad mi"ed loans to the pxtf'nt
of FeYf'nty-two erore,'. Tllf' Poor Law Cnions IIIOJIP
an f'xpenditurf' of more thlln ten ('ron-"
all over England. Till' number of paupers, support-
ed both by out-door lind in-door rdief, was one to
of the pOplll:ltion, or in "II nine Lakhs.
The Schod Board ratf' Illso I'f'presents an expend i-
tme of sf'Yeral Crorep. The ReH'lIuf' lllld Expenditl1l'f'
of the great :\'1ptrop( litan Borough of London dwarf,
even these magnificent totals. Thl' gross ReYf'n liP
of thl' London Corporathn alone in 1871 Wll, 0111'
and one-third Crores of Rupee>', of whil'h 811m sf'Yenty-
five Lakhs were the proceeds of Rates, Rent, Toll".
Duties, and Market
This hrief summary of the leading features of
the arrangemf'nts for Loral Government and Taxation
in the and Boroughs of England will mg-
gest to the thoughtful s11ment many points of com-
pari son , hilt 1Il0re of contrast, with 0111' own sptf'lll
Qf l\Il1nicipal find Local Fund organization" whil'h
-cannot fail to prove I'f'ry instruetil'f'. Tllf' grf'at
-complf'xit.y of tllf' arrangements in England i" ef'r-
tainly not a point in fayonr. In London :llonf',
there a Illultiplicity of gOl'erning hod iI's amI a
of power" whieh haffle pnl11lleration. Therf'
is t.!.f' Corporation of thf' of London ]lro-
pf'r, whose j f'xh-nds OYf'r ,ix hundred and
forty within the City \\':l II s, illt'lllding a ]lopula-
250 ES8A 1'8 ON 1:X III AX ECO:-.'o)lICS.
bon of sewnty-fiye thousnnd souls. and divided into
twenty-six 'Wards and a hnmlre<1 five
This Corporation consists of tht' Lord )Iayor and
twenty-six Aldennen 1I1lU two hundred and
common Councillors. two a Recorder, a
Common Chmnlwrhtill, and a Town Clerk.
The Mayor is chosen by the Alrkrmen annually, ont
of two nanlt'S snbTIJitt'd to that hody by t hp :\[eill-
bers of the City Livery COlllpanies, alld the old TraIl,.
Guilcb. \\hose constitueney numb'rs seven thomand
Free -'I'll. The Aldermen are el'cted for Iif', olle
for each ward. hy a hody of twenty
Frep -'1(,11.
TIll' -:\layol' amI Ald'rmen aI'' all
.Imtiees of tIle Ppnee. and as sueh thp Ahl",r-
nwn presidp each in Ids ward, and the Lord
Mayor in til\' Common Couneil. The Mayor aI,,,
1'I'esideR as Chief Jfagistrate in the -'lallsjon Hom!'
Policp Comt, and the Aldpnnen sit by tHrns in the
Guildhall Police Court. The }{econlf-'r. and in hi,
absenee the Common presides in the Chief
('il-il Court for the City. The Sheriff is elected by
the Liv'ries, and the I-I[wriffs Court i,; the London
Court for small debts. The .:\layor and Aldermen
sit with the Hecorder at the Geneml Sessions of
London, held eight times in the year. Cilil
and Criminal Courts haw exclusive jurisdiction OYl'l'
the City, and are not subordinate to the Jurisdiction
of the sUlJerior Courts at Westminster. The Police
Force for the City of LOlldon iH frOHl tlte
Metropolitan Polin', amI tit.. City Colltllli"ioller of
Police is appointed by the CDlIllltOn Council. Ther ..
also a separate Commission of .. wers which
ft'gulate. rlrainagf'. public health. and tilt'
of and a Conspn'ancy Hoard.
the City limits the London :'I[etropolitan
District and nint"
Boroughs, and has a population of nearly forty T..aklt,.
This vast populatioll IS gO\'ernt'd by thirty-t'ight
Veshies or Loeal Hoards, whieh have the l'hargt'
of Drainage and ill1l'rQ\'ement of 'Yater :-;u\,-
ply, and Lighting. A Central :'Ilptropoli\rm Hoanl
of "'orks, consisting of thf' nominf'f''' of tit .. "ity
and t.he ;-;ulllu'han \' estrie,;, has charg .. of t Itt' gent'l'a I
Drainage. This Hoard, throngh its various COllllllittpp"
takes care of the Huilding arnmgelllents, Fire Hrigadt.
Parks, Common t\pwers, Tramways, Infeetpd Food
The ;\Ietropolitan Police under tlw
dirt'ct charg'e of tilt' HOllie Secretary. For the 1U\llli-
nistration of the Poor T..aw, London consists of fonrtt'en
Parishes and sixteen Unions. A
Hoard has the of Infirrnarit'> and "'ork Hon,e,.
tit!' expense" of which are ont of a common POOl'
}<'und. In these POOl' l..aw BOHnl>. (iOH'rtllllellt nomi-
nates one-fourth of the uUJllber of :'Ilellllwr>. while th ..
remaining thr .. t'-follrths art' .. It'dI'd h\" t itp l{nte-\'RYf'r,.,
l.astly, there the llt'tropolitan I'\cl1ool Boanl of
252
ES:-;AYi'l I:I"DIA:-I ECO;limIlCS.
]1 ill " '\{ember.'. eJpcted separately hy the Freern('n 1Il
London, anrl ont,ide the City limits by the Rate-payers
g('nerally, lludf'r the cnmnlati,'f' of yoting.
brief enumeration of tIle gO\'el'lling' local borlies of
Loudon will fnrnish an acc1ll'ntp idea of the complexity
of the arrangp/IIPllb,. Tn a IllOl'e 01' I,'ss p:ttent, the
,.;ame remark applies to all tltp other Borongh, and
'Counties. The Iwst thing that ctln Iw sai(1 in its
,lefence is that this ['omplexity has grown in COUfse of
time, as pvery newly fplt want had to he separately
proyidN\ for. Tlu' pffort.- of P,1rlilltIent. han' been
direetpd for ),P!lI'S to 'ill'l,lify tllis C'omplexity by a
IIlOrf' t"orong'h-going awl 'ptematic arrangement for
tllf' ('ommon sllhonlination and C'o-ol'f'l'ation of the
YariOlls Divisions llndf'r a ('f'ntral ()I'ganization. Even
)Jow IlIf' Liheral (Tm'PTlllllPnt )lIlS a Rill on for the
illC'orporat.ioll of U/A whole _'Ietropolitan area under II
COInIl/OIl Local lTOI'f'I'lIIllPnt. Til", dirj"ion of power
and j" n ,'ol'l'eC't principle in executive
hilt it lla" ('('!'Iainiy no IIJ1Jlliciltion in the
CII,'\' "f r]plilwrati,'f' !Jodip,';, TI1f' waste of elwrgy invol-
\'e(1. ilnd the great co;;t of milintaining' separate Boards
for ,.epnrate dlltip';, are ('ertainly great eYils, which
IIlIl,t lw guardf'ci ag'ain"t. ,wd we cannot but think that
ill t hi, re"pPC't our .\lllllicil'al and Lo['al Boards
nre H great improvement on the English arrangf'lllPnts.
The nf'xt feature which attracts attention is tile large
pl'o"i"ions which Local Government Bodies in England,
LOCAL GOYF.lC'01E:\T 1\ E:\(;I.II\II A:\D IXDlA. 253
(and in this respectSeothllld aile! Ir"laJl(I llllly al,o be
induded with Eugland). IIHY<' to mnk" fOl" tl,P ('oIlll'ul-
sor., relief of t.he Poor. :\""I"ly four ""I" ('t'nt. of tllt'
pOl'ul:tt.ion are J"t'lie\"pd in England. whilt' in I"eot-
land the proport.ion i,; ]>pr cpnt., lllld in [nland it
is four and It half ppr CPll t. The charge for the 1'0101'
Hate in Eug'laml on tht' totnl rental of landR and ],OIlSPS.
estimated t.o be onp hnndncJ and twenty ('ron',; of
Rupeps, if' 1s. 4d. 1"'1' Pound. or nearly eight Cron's of
III I"cotJanrl. the (harge is Is. I til. per
PouncJ, wilieh on a rentnl of fonrtpPIl Crores I'epr"spntf>
Ilt'arly eighty-fil'e Lakhs of expeuditnre 011 POOl' Relief.
In Irelaud the dl/nge is nearly eighty Lakh:;. [u ti,e
whole of the U niteo Kingdom of (;'reat Britrrin a.1)(1 r rf'-
laud, the total chllrgpwas thus ten Croresin18i:l, which
is the latpst yerrr for which we han' the a\"ailablp figllrp,..
In England and [r"lalJ(l. the ahlp-bodiecJ 1'001". Ro'
well as tllp infirm, are l'l'ol'idec! for, while 111 Scot-
land no l'eliE'f i, afforded t.o thE' able-bodiNl Tilp
whole of tilis relief is (]pfra)'Prl "oluntarily hy tilp
people of this Country, and in this l'E'Hjlect also
we think that India ha,; little to horrow frolll English
example. that we have no largp ell.",; of per-
sons who need relief at the hands of thE' wplHo-do
community. The Censlls 'l'ablps of 18i2 show that
out of a population of nearly sel'pntppn million, in tliP
Mombay Presidency, about four Lakhs Wt'I'P' returned
liS Beggars and P<tlll)ers, and two Lakhs 1Il0l'P may hi>
:l.'i4 ESSAYS OX INDIA:-; ECO:-;O:\IICS
added for Priest" and religion;; people. This represents
an average proportion of three and a balf per cent;
which, it should 1)(> horne ill mind, is smaller than
the proportions which obtain in England and Scotland:
:'\ 0 )Ieople on earth take hetter care of their
population titan the people of thi;; Country.
'harity with us I"; a ,acnd <Inty, an o/)serranee
which , .. yrnbolizes the of all Ht'ligioll. It is
thi" acti \'C sense of the obligation of riches whi('h
the compulsory system of Poor Law Relief, as
administered in England. ten<l" to destroy. l 'ltaritj iR
in England a heavy bnrden to he shirked, not a loring
duty to he rpjoiced over. The pffort
I'ari,-;h and District Poor Cnioll in l<:nglancl is direct
ell to shift its own responsihility, and ,addle the
('harge of its Beggar population on to other Parishes
and Districts, by provin!:?; that the poor llIan 'Of
woman had not obtained a settlf'ment within its
limits. Landlords and House-owners rf'sent el'ery
,;ucll settlement as a di]'t'ct encroachment on
rights, and this leads to a misery and
heartedneRs of which we III India can with
<.'ulty form any ad!',\uate idea. The eharges of
IJlanagement absorb from ten to fifteen per cent. of tlle
Recpipts, but what is fm' worse, the r1i,'pensation of
('liarity, enforced as it i" hy Law, rend!'r,; both the
giwr and the recei\'er eallous to th'" and
tIlt' humiliation. It has hef'n ohserwd that in Scot-
. .1. when"H'r the proportion of the Poor Hon.'"t'
'l1att'S is the large:t, and in :;ome Paruhe;; it j"
"igh a" fifteen per cent. of the population. the
,portion of illegitimate is frightfully high.
",()lOe of the badly admini.--tered the
PQrtion of illegitimate to legitimate births is as
h as on .. to two. and tlIe 'l\eragl' for the 1i"hole
:'eotland 1i"as t .. n years ago onE' to teu. Tht'-5e
e\ils an- naturally aggt8\"atl"<l in place;; ... bere tt"
out-door .. m of relipf largl'ly adol'tro in l'r .. -
fl'reuct" to in-door rt'lief. In this re"lJOt'Ct also, Eu:.:-
"md rompan"S fin'ourably "'ith the ;;tat.. of tbin:.:-
"'hieb obtains in P(>or law Rt'lief rna\"
haw pn"\'f"ntro th .. st.n>ad of Soeialist and Anarehi-:
R .. ,-olutions in Great Britain. but tht'n" l'8n))(" J;'
doubt that the \'oluntary diS))l"nsation of n"1iE'. as ::
pn"\-ails in India. is iu e\'ery ... ay mon" healthy 8L :
humanizing than the compulsory sucb as it :-
found in the r nitro Kingdom.
WhilE'. in two re.---p<"cts. the Local Gowm-
ment orglmizations in England ha\'e nothing to
recomm .. nd tbeir adoption hen". at least for tht'
then" other featurt"S in n"Spt'Ct of ... bit'h
tht'n" can ))(" no donbt that "'t' han" mneh to learn
from th.. praetil'8l of the eXpt'rieuct" of th ..
System of JA'31 GoH'mment. " .. alludE'
L'hil'fly to the large po,..-t't"S wbieh thl' T __ it't"S of the
landed and ,..-.. Il-to-do classes Honorary
2;)6
0:" I:" Dr A:" ECO:"O,\[[(,,'i.
,\[ngi:;trate, in tilP Itl<llUlgrlll,'nt of 10",,1 affair", Theil'
fundiolls, it will I", lJott'd, m'e IIOt ('(Jlltine(\ to
:\nnieipal mId COIl"'lT1\m'y It is as :\Iag'is-
tratp,.; an,I Gnanlialls of thf' ['eacf' t I,al thi" mlnutarl"
ag'Pllcy pro\'es 1Il0st n,efn!. TI,f' :-;,,11I'1llf' of Local
,'4elf-G'o\'E'rnrnellL I'l"Ol")(lIJderl h\' Hi, Exeelleucy thp
Yieeroy in CounciL \\ hilp it pn Jarg ... >, Hnrl elp\afts tIlP
"phere of puhlic-sl'iritpcl 'll-tility ill I'arions way", has
one essenthll weaknrss at it., r(lol, \I'!ridl will SIll'ply
n'snlt in renderilw Ilip

reform
of Political Education. It dops not C'onfi(le to tll" men
of light and leading' thos.. flllldiom; of (}o\'et'llment ill
which people feel mo.,! intere.sr. If l'ossiblp, it tends
to ",'I'er the small connectitlll which was hitherto
recognizell in tIlt' contributions to the Police Expen-
diture l .. l"ied frolll 3Iullieipal Thi" SE'VE'ranee
has been justified for reasons which certainly appear
plausible nnder prE'sellt circumstances, bnt. then,' can
he no donbt that ]':)['al (}O\'ernment, limiter! to C'Jn-
"en'aney awl Charitahl, functions, is more or less a
misnompr, and i,; rloomed to inedulble failure. For,
it will nen'r thp Hame enthmhsti<: support of
the population which would Ilm'e been Pllli,t"d. if
Local Boriips Irnd been orgallilPrI on the Eng-li"h plan
of appointing rel'rp,entati, e.' of the LO(,!ll gentry
('onser\'ators of Peal"f', and of the Law, and
a",ociating' with thelll repre"entatiH' Rate-payers in
elery Local Roan!. It will be found that in no single
s .. lf-!!IlHrIlt><1 of Enrol''' or Anwrica. ha,. this
IlOWPI' and r"'lXlII"illility of :\[agi<t .. rial and Polict'
function" he"n ,Ipnied to tIlE' gonming-
Wp hn'-.. alrpady clt'"crihed at It'ng-th the
for tilt' gowrnDlt'llt ()f Borougbs and
Countit',;. In &Qtland. tIll' In,.titlltion of Justices of
t lit' Pt'ace is not of a ,t'ry aneit'nt datt'o and pt. t'\'t'n
th .. r.. tht'st' Honomr), Uffil'l'I"S are re<luirt'{1 to t'xert
th .. rn,t'!\"I" to protl"<'t tllP Pt'8(t'. to issut' Warrant,
a:;:aiu"t eriminals. to try jlf"tty offpnl'Ps nnd brpachps ()f
H('\"f'nup Law:<, and lit'dde small not t'xcproinO'
'"
fj,.p in ,alue. In thi, lattN rt'sppct. tltt'
Institution of '-illng-t' and of Conciliator,. in
"01111' of tltt' Momlmy Di,.tricts is a tardy of
tIlPir tlnty on thp part of tht' (i-o\-t'rnmt'Dt. A fpw
Honorary haw also of lntt' 11epn apllOintffi
in Romt' of thp I"rgt' Tmnli'. but tht'y art' too felA' to
al'quirt' tht' of a rt'eognizpd Local .\l1thority.
and cannot makt' ht'1\d agaill4 tllP Officillk Com-
of I'llpply, as they are ('allffi ill Scotland.
corrt'spond with ()ur Local Fund o..rs and art'
electro by thp suffrages of properly qualififfi Land-
owners. Thpyas"e", for t'ach Connty the local ratE's. out
of which are defrayed the charge, of thE' Policp, kept
up for and punishing thp >'8la-
ries of Procurers Fiscal (who correspond with thp Go\"-
ernmpntSolicitoTl< of the Presidency Towns in India), thp
of maintaining Courts. Gaol5, and th(" charge,.
11
258 ESSAYS ON ECO:';O)IICS.
of Lunatic Asylums. The"!' lta\'e tilt'
chief control, not only of roadH and improvements and
public conservancy and health, but of the County
Police and the County Prisons. The connt'ction of
the Central GoYernmt'nt with these and other bodies
is maintained by the nomination of the i-;heriff, who is
ex-officio member of this Hoard of Commission .. r" alld
of the Police and Prison Committee,., and by a suhsidy
granted from the Treasury to the Local Funds. The
Poor Law Hoards, and the School Hoards, and the
Church Synods, are separate loeal authorities with
tinctive fllnctions, and are constitutl'd chiefly on the
basis of election. In Ireland the Ih Presentment
Sessions and the Grand Juries exerci"e hoth
judicial and fiscal functions. In the Nt'tlwrlancls and
in France, aR also in Norway amI i-;witzt'rlanc1, the
Communal Authorities to a gr!'atf'r or less
extent, their own Police arrangenwnk :lI1d tl,P (HncPl's
presiding over them, called Bnrgo-.Un,ter;; nIHl Prp-
fects, have petty criminalpowen,. III the ('olullies of
England, theRe af(, lI\orf' t'xdll;;iwly (,lljo)"p(l
hy the local organizations. Thf' nN, .. "ity am! imJlor-
tance of localizing' Policf' and lIIagi,t('riaJ flll11'tiollF can-
not be exaggerat('d in a hnr('alll'ratie conntry lik" India.
The old Yillage Community, with itf; Panchayat of
and its yoluntar)' "ptpm of Watch by
th(' citizens in tUrllR, and its her('ditary Pnli('p
fulfil\pd ttie .am(' purpose. The pdt)' tyntll1l)' of the
LOC.\!. (;On:IC'OfEX'f IX EX(;LA:-W AXil lXDfA. 259
Frt'llch Prefect and Hllrgo-)Iasters in the
js ag,gl'a va ted with 11:' hy the difficulty of to the
j)j,;tri"t Anthoritie", who in India are t he only source
<If local power, A petty Police Cow,table is thus more
powerful for evil than the richest ROlI'cnr, or the largest
Landlord in the cOllntry. It this evil of centralized
gOI'emlJlent. which enerrates and de1l10ralizt',- It]] the
local of aetion, It will nil doubt he "aid, tltat
tllPse local rel'resentati\'e,; are more likely to abuse
thf'ir power than el'pn the 1V0n;t officials. "'fI think
Honorary .\la,gi"trate, associated togethel' and sitting
a,; It Bench once 11 month or more, may he
trll,;ted l!el'er to go wrong, and tlwy will certainly
l'l'lif've the hands of ol'erlmnlened Officiab. Their
ft1lwtions may 11],;0 be duly ,-lIiJordinated to the
<1Ij1E'I'jar authority of the hig'bpr Civil and Criminal
('Olll'ts. It is in rlirflGtion chiefly, that we think
<Jill' E'fforts hE' directed in the future development
of the great ),pform whjeh is lwing' introduced at the
jlrt'sent day all 0\'1'1' t,he country, The peo}>lp gpnprally,
and l'ertaillly tho"e n,,,iding in tllf' Inrger Towns, may
wpll bp pxppetp(1 to accept gladly el'en jncrpased
h urd ens, if the lower :Uagistprial j>0WflI'S, and the
"'1I1trol of tilt' Poliee, wpre freely hestowed on
their leafIer:;, The Conserl'allr:y of Public
H{'alth, th{' "harge of Education and 1Iedical Charity,
Ilnd e,'en tllP. making and repair of Roads and
are not in any real sensp of the word the
260
Hi 0:> [:>[)(,\:>
distinctiv!' duties of Go\!'rnment. Tll!'Y ess .. ntially
belong to the sph!'re of I'rimt!' .. ffort, and art' only
unoertaken by cidlbwd l,oH'rTImenb, tlipir
organization affords II ready-made ag"llcy for corpomtp
It is the 'Iagisterial and Polin'
whieh represent the feature of so\'preign
authority, and thesp mn,;t he loealizf'd if Local
ment i,; not to ht' a misnomer, aucla cf'rtain flliluT!'.
W!' art' pNft'dly alVan' that th!' condition of Self-
,go\'erned ('olllltri!':, i" very different from the ordN of
thing,; whi,]' 1,<1, bpell establi,;hed in India', but is
no reason no effort hI' made to find room
for loeal a11tl,ority in these direction", 0" far as'the
safety of Foreign HlIle ppl'mits sueh a eOllcE'""ion. Thf'
expf'riment may be tried ill Ihp larget' Town".
and gradually e:dended to the Coun!,ry at largf'. The
great principl" ull(lerlying all tlw:.;e arrangempnt, jx.
in the word, of:'.Ir. John 8tu;'Irt :\Iill, thai l'0wt'r 1ll11,t
bE' loealizf'rl, whilE' knowleclgp, esppcially tt'chniC'al.
llst'flll \\,hl'n to a ('Putnd control.
The principal of tht' Ct'ntl'ltl Allthodty should
ht'to give in,trnetions, and to lay down fixed prilleiplf's,
and it ,honld lea\p the local hodies to apply them in
practice. Election by popular suffrage enlists public
confidence in the aet, of Government; and Wht'll a
majority of elected Ht'pl'esentatives arlc' duly mixt'd with
It minority possessed of edncational and property qualifi-
cations, and at I'rE"Sf'nt mmt be the nominees of
the central authoritie'. the organization so secured ean
alone afford fnll scope for the development of the
Political Education of thp peopll', and the growth of
that which is the best support and
the highe't jll;;tification of eOf>]'('ive rille
1"--
: :
x.
EMANCIPATION OF SERFS IN RUSSIA!
, 4
N
ow that tllt" (iOYE'l'lllllPnts of England and hlilia
. han' seriollsly taken in hand task of r"lil'\-
ing- the Agricultural l'la"""s from their heavy cleprp,;-
sion, it cannot fail to be of "'" to note the l'rogr",,, of
a similar Emalwipation lludcrtaken in European Ru"in
about twenty years ag'o. and which, so far a, one ('iln
judge from Official i{l'l'mt,;, l,as been attended wit.h
great Enrol'l'an l{ussia, including the King-
dom of Poland, tllP (hawl Duchy of Finland, the
Baltic Provinces, and the Trans-Calll'Hsian Regions,
con'I'S an an'a of np)lrly 2,000,000 square miles of
Territory, inhahitf'(l hya population of st'I'enty-two
millions, tile Cossach ancl Kerghiz Horch,s.
Tlte ext.ent of Hussia proper is about 100,000 s(jllare
mill'S, and its population is sixty millions, Of tlli,;
number, npa1'ly ei,ghty per cent. comtitnt.e the Rural
l'ol'lllation, and ahout ten per ('ent. an' L'rban, includ_
ing the Xobility and till' Clergy. About per
<'I'IlL reprpsent thp element of the popUlation,
which gil'es to Russia its position as a CIa;;;;
European power. For admini,trati H' purposE's, Enro-
* Pnbli,}wd in 11'''3.
OF :-lEIW:; IX Ht;SSIA. 263
l't'an HUi'sia propP!' i" dil'ided into forty-five Districts.
One third of the> whole cultivable area iH Crowo.
Land, one-fifth or'tl,,' area bdongs to the great
Landlords who Illllllbpf about It IIundl'ed Thousand
Familie." one-fifth belongs to the Peasantry who
uumber about forty-pight millions in all, and the
re"t belongs to the tinnell, :\lillt';. i\lilitary Colonists,
Hoyal Appallai!:p Lands, ek. Of the total of
forty-eight millions of Pea,;ants, nt'arly one half, or
twpnty-five millions, were attacheu as serfs in
1861 to Crown and Appanage Lamk . The great
Emancipation Act of 18G1 was not directly intended
to apply to thi,; large nlllhher, bnt the scol}e of
relief was extended frolll time to time, till
tl,ere is now 0.0 Serf left 011 HlIssian soil. They are
at present, like the Surl'ey (kcupants of this Presi-
dency, Peasant tenant" at fixed rents called Obl'ok,
payable to the Gorpl'llment, and redsable e,'ery
twenty years, amI llLay alit'wlte their Holdings sub-
ject to this liability, at a fixpd pricp, which repre-
sents the capitalized millp of the rent at five per cent.
As long as ()bJ'o1.: is paid, the State Tenant's
land cann0t rerert to tiL<' f'tntp.
The Emancipation Act of 1861, sought chiefly
to elevate the condition of the Peasants who clllti-
lated tlw private land" of the and Gentry,
and made up a total of nearly twenty-two millions
of Serfs. Serfdom, like Caste and Slaypry, was origi-
264 O:i" l:i"DIA:'l Eco:-;mucs.
nally founded on the great faet of J<'oreign
Serfdom, as a recognized Institntion, wa,.; introollct:'d in
Russia about the end of the Century, hy a
Law of 1592, which prt'\'ellteo tlw
migrating from one estate to another, withont. their
Lord', permission. ano attnchpo thpITl to the soil in 8
way to ";p(;nrp tiwir transfe1' WIth the land. }>pter the
Grpat introdueed the Poll-tax in l{'lssia, and made
the Lords rpsponsible for the tax due from the
Peasants on th .. ir lands. The alJ\l,.;e o)f powers, so
natural under these cirL'llIl1.;tanees, soon rlegra(\ed the
Land Serfs to the still low,-!' depth of ilUldless Bonds-
men and life C()nvicts at tll" :llines. The land-
ed Gentryowned in all, in 1 RG 1, abont three hundred
million acres, of whieh one-third w"'; ill the occupa-
tion of the Sprfs, and of the two-third in tllP occupa-
tion of the L'mdlord", one half was mort(!Jlgpd with
the State or private Crpditors. In eonsidf>rntion of
their free occupation of one hnndn'o million
the Serfs were compelled to 8('1'\'(' It fixed numher
of days, which was generally thre,. days in the
week, on the two-thirds in the oc('npation of th"ir
JK'lndlords, or paid them rpnts or services instead.
The Sprf could hold no l'roperty of his OWII, and
although remedial JnpnSlll',.s wprp introduced from
time to time, since the ('ommem'pmelit of this
Century, it was not till 1847, that the Rel'f could
buy his per,;onal fl'e!'do1l1 fmm Lnndlord. or
OF I-'EHFS L\ nt:SSIA. 265
huy e\C'n '''aste Lanrls from his private
excel't ill Ilis Lnndlord's name. The f'erf lwd no
Chil Hights against Ilis master, the latter conld
flog him at Ilis pleasure, or hani:;" hilll to distant
Plantations, or send him into thp Al'lllY. Whell the
nobl.. Landlonl rt'<juirt'd a Joan, he mortgaged his
:-;t'l'fs with lJis land and cattle. The Serfs on Crown
and Appanagt' Lands were in much the same condition
as llrivate in respe(t of the incapacity of free
locomotion and Civil Rig'hts, only tht'ir rt'nts wt'rt' lowt'r
and less varia hIe. Hu('l1 was tht' condition of the
nnpridlt'ged Hnrftl throughout Russia prop"r
H'ftrC't'ly twenty yt'ars ago. Of the forty-eight millions
of f'''l'f populat.ion, representing ten millions adult
lIIales, attached to Crown, Appanage, and primte lands,
seven millions of f'erfs wert' in pawn wi th mortga-
gees, 7,50,000 Serfs were cir>mt'stic senants or land-less
Bondsmen, and 5,00,000 wert' employed in the Mint's
in 1861. These tt'n million sNfs culti\'ated one 11\111-
drt'd millions of acres of lam], Each adult male Sel'f
enjoyed thul< the usufruct of tt'n acl't's of land, which
llgrN's with tllP IlI'erage holding of an Indian Hyot in
t hi, Pnsidt'ney. It was in respeet of thi" immeme
popUlation that the late Emperor Alt'xllnder l'rn III III gllt-
ed tllP. great Chllrter of RU8silln Liberty, and cornplt'ted
tlleir Emancipation bt'tween 1861 Hnd 1869.
It will be iuten'l<ting to notp tIle chit'f ft'atmes of
this Reform, and to 8tudy tlit' dE'tnils of tlle 1I1Etlled hy
266
ESSAYS 0:'1 l:'illIA:'i E('l):'iU3IJCS,
which it was accompli,;hed, 'flip '.!;mnt of Ciyil ami
Per,;onal Liherty, and the of this im\f'!,pn-
dencf' hy "'l'llring to the free it minimulll of
pro!,Plty, 1"l)re';Pll \f'd by t he all otmt'n t of It )lH r('pl of
laml in tenancy or frf'p-hold !'urellll,ed with I'nhli,'
Fund.-, all(l a reeognizt'll ,'oil't' in HIe of
loeal "flail" the"e 11 ... re the thret'-fold l,riiwipal
of this great Hefcl)'m, \)\lJ\\esti(' f-;('rf(IOlIl, tlw
right of the master to Hit' ('(mhol of th, 1'e1':,oll of thE'
Serf, \I'a.' first aholi,-1lc'd without Hlly ",'",'nation or
con'l'PlI""tion, excPl,t tlwt th ... 1'011-\;1:\. wlli,h tliP
rna,tl'!' I",,d to pay for his Sprf", InlS no\\' transf ... rr,d
to tliP EIII;JlI('il'att,1 :-;erf. Bdlnt'll 1861 and 1 iHl3,
the Elltall('il';ll<'d dOlIlf'stie S"rf IIn> l't'quil't'd to ]lay to
Lis master tlli" l'ol1-t"x, "I' til" 'hillin.gs for t'neh !lin"',
and four shillillg, f'\l \'H('II f,nl;t!,. Aftt'\, 1863, tllP
fr('"d Serf paid Iii" 01111 !'IIII-lax dilPd to th" St"t".
Tn rt'g'fll'll to tl,, "\I,,bll"llt III' iall,i heir! hy tilP
on tlwir III",h'r\ ,,\;1\1". ,m,l tl", rj"llt of t.IIP lattpr t"

rp(,t'in' quit HplIh 'llld ;';"ni,"'" fnllll thPIIl, OW'ln",-
tion IrH' not PI")' "I' ",llllioll. As a l'ul ... , til<'
allotllwllts wer' ont'-tltiltl of' tli" \\'Ilolp f"tab'. awl
llen'r pxcppuerl om' hnlf. For nlllJ\\'ill!:1; tIll' to
fnjoy tllf' \llmfruct of thi" land. with tl", right. of 1'[I,turp
on the eommon8, Hnd of entting timh,'r mid fuel for
huilding 'lnrl humin.!.; purpORt's, th... ma,tprs t'ith ... r
rp('ei,'",,, p'nt on thi" allotm('nt, or mol''' generally
re'lnir,," tli .. Serf" to ('ultil'ate three day" in th" we"k
the unallottpd or fP"PII'pd portion. TIlt'Y spldolll Paid
j{pnt in 1lI01ley. TIlt' 1,,'r80nal la1>011l' which tlte"
gan' on thE'ir llla;.;tpr" land wa:; the usual
('onsiopration rp['pin',\ by tht' master frolll Ulp Herf"
to hi" lam\. III the Inclw;trial Pro\'inl:p"
llIonp)" were IlJOrp l'Olllllion. It 1111, hepil pstimat-
pd t hat about twenty-fi "p 1'0'1' l:ent. of t Itt' Land :-led',;
1'1Iiri (-lnit H"llt "arying fro II I 28. 3(/. to Vrl. per
1I"rp; thE' rE',t rpndE'rpd "'l'Ii,'p:; instO'arl.
Thp ('oll,,"ittep had first to settlp
tilt' maximnrn allotlllO'lIt of thp lam\ which wa, to
\11' IIlade uvpr to till' :-;erf as his l'ril'lltp Hulding
rii:;['hargwi frolll a II hllnlens. and they had nt'xt
to ,\ptprrnine tltp alliOllnt. of ('ollll'pJ1"atioll which tIle
::; .. "f". or on U,,ir hO'lmlf tllp Statp. "honkl pay to
tlwir mll;.;tE'r" for the los;.; of t1wir n'llts anrl ;.;pr-
'W"". Thp IIlonp'y whiell rangpd from HnpE'P"
four to Hnppps fifty a,cl:orrling to tlie <jnality of
till' land, and thE' nE'cE'ssitips of tllP IIlfl;.;tpl'. could he
pasil)" a"!'ertainE'd nnrl \,<lltH',L hilt tllP vahwtiull
of personal SE'ni('es was n,)t ,0 E'HS)", as SPryicp:;
were of It 1lI0"t mriety, and subordinated
tlte :-Ierf to the IIlOl'lt orrliwlry of his mastE'I";,
PY"ry-day lift'. Anothpr somee of complication was
dill' to the faet that mallY of t1w estates helonging to
tIlt Privilpgerl Classps wpre mortgaged, togE'ther with
the Serf popUlation on them, to the Htatp, whieit
had advancE'(l ahout fifty millions StE'rling on thl'il
268
};SSAYS 0:'1 lND1A:'I ECO:'imIICS.
,;eemity. This eoudition of afiilir,; fUl'ui"hed, howP,'pr,
the working le\'er for thp action of the Stllte, After
Illllch discussion, tlle final plan a(lo]>tp(1 by the late
Emperor Alexander',; (Tovernrnent was a COmprOlnISe
of spvpral more f'xtt't'UIP propo"ak An an'rag:e
allotment of ten !laes was fixed tlR the ,;ize of a Sprf
] [olding. 'fhi,; Holding, togpther with the Hompstead,
wa" cpdf'd in Perpetual Tl'nancy hy tllP "'laster to
the Serf on terms hy mutual alTangeJllf'nt,
or failing that. on conditions fixed hy law. whid),
however. limited thp cOlllpuhmry
ocenpatinn of tlIP
tenant to ninp y,al'';, (her tlml abo,'f' thi,; right
of t(-'nancy, the :->erf eonld eOlIlpnl8orily (]Pllland the
of this allotment with the Honwotpad 011 it at a
prize fixpd by mutual agrpement, or failing tlmt hy
thp :->tate Officials. Th .. State undertook to provide
the :->erf with fnnds to Pllable him b lmy oft' his
mm.ter's rights OI'er the allotment. The ri,ghts of
l'f'rsonal Serviee on his master's land, were (ommuted
into It mOIH'Y payment ell ui mlent to the Rent
which would hayp ])p('n received, if 110 senieE' had
heen }'enderl'd, and Quit Rent ('apitalized
at a fixf'd l'aillation. The Political Hight, of the
master. awl hi, profits derived from. thE' (irmlg'ery of
the dOlllestic wert' aholished without cOllll'en:;a-
tion. \Yhil" the Serfs interests w<"re tlllB :HiI'ane<"d,
til<" master was ah,oh'ed from all liahility on a('('ol1nt
of Imperial and Rural Taxes (Iue from th, and
he had llOt to pHy his Serfs fine,;. or (lerelld bis actions
ill C'il'il or Crilllina! Comb at his OIl"1! n)st as before.
The :o;tnt .. protechd it..; own Finalll'h hy establish-
ing, or rather revil'ing among the Sprf, the Institu-
tion of Communal or Cantonal responsibility. i. e., the
joiut liability of the JI161'e or \'illage COllllllunity. The
Allotment and the (luit Rent were all fixed in a I \11 II\,
sum for the COlllmuual units, ami th!> indilidual ~ ( ' r f
was iliad!> re"ponsible to the CommlIne of which he
formed part, and each local community of Serfs became
ill their tmn jointly responsihle to the State. To borrow
an illustration from our Indiall Hel"enue system, the
I;ettlement "'as made with tl.e eolll'l'til"e body of YiJ-
lage Zamindars or Mirasdar,;, a" in tlte I'anjab amI
North-Western Provinces, ami Hot with the individual
Ryot as in this Presidency. The Russian word i()]'
Canton or Commune i, J[m'e, wLich hns an ethnieal
and lingual affinity with om lnd:lIl nIims,
At first, the change of conditioll in the Serfs lot
was a transfer from the yoke of II lllivate IIlien lllllstel'
to that of the collectil-e Commulle. Tit!> f:;erf, thong-h
emancipated, was not HllolreJ to leal'p his natiw
Village, or to detach l,ilmE"lf from the land without
the permission of the heads of the Jfere, who recein>d
the redemption price from the Serf as II condition of
his release. In the old Social Polity of Hussin, the
father, or the hea:! of the family, under whose pro-
tection all the subordinate members Iin'c! together.
270
ESSXYS ox IX fJlAX ECO:\"o)IfCS.'
had ,"pry large and as thpse Yillllge Mej'es or
l'omlllllnitit's wpre of tht'1Il by the'
dt'scendauts of one family. Jlt'xt to tllp Lord's power,
the Patriarch's authority wllsull-potent for. good or
f()l' evil. As Ulay b" plisily imagined, :this powe.!'
WIl'; ahu,;ed, el'en to tht' t'xtent of degrading
the purity of family life. 1'11(' financial interests of
the StatE'. a:-l till' IIwrtgagpe of all tIll' redepmed t'states,
and the recE'ivE'r of thE' Poll-tax, compt'lled it to
IplHl it, C'f)lIlltPlJaIll'E' to the maintenam'e of this Patri-
arcllal an<l ('.1Il1I!lunal sy,tf'm. As a counterl)oise to
tlw,,,;, "mil hacks, the IlPW organization 8et up by
tliP Eiliall"il"ltion Committpe gTeatly strpngthent'd thp
hanel" of t I, j, l't'asant pOPlllation by th!'
of elediw l'lJlIllIlunal and Canton Coum'ils with the
browle,t suffraw', and with \'t'ry !'xten:;il'f' powers of
Local :-iplf-go\'ernlIlellt. Tllp Rt'rf. onct' frel'd from his
Lord'" control, lind of full Civil and
l'oliti('al not like>ly to submit long and
patiently to thi" (',)))III1l111al re>straint,3nd the proce>,:s
of this speonel li\wration may alre>ady be said to haw'
commenced. The> of the old Patriarehal
System and ,]ombtie may he ,af!'l)'
regarded as by no means the le>a,t of t1w hendicial
change>s inaugnratNl hy the grpat Emancipation.
Between 1861 and 1869, the latpst l'e>riod for whieh
information is amilable>, it app'ar': that about onp-
third of the adult lI1ale Serfs were> conwrtt'd into
UF SEI\I'S 1:,\ H{":-;''iL\. 271
l't'rpt'tnal Tt'nanb of thpir ten aere Allotments and
Ilolllpstemk Thp rental t 1,1"1' frpt' te\llmt pay
for their land is fixpfl in thp of a Poll-tax,
wl.il'h. wht'n 'pH'ar! 0\1'1" the extent of tlit'ir Hold-
ings, rel'rt's(,llb a eharg'l' of two ::>hillings an acre. The
:O;tate elaillls the right of rt'a,:sessing; the rentals atter
t\lt'lity yt'1m'. A, wi II I, a \'e bet'n from the
':1l1ll1ll'UY gl\"'n ahon'. tltt' Sehelllt' of Emancipation
t\lO compulsory Perpetual
Tl'llflncy. or compulsory Purchase of Free-Hold, as a
'l'lalilkation for plp\'ating the to the eondition
of a "I"eelllan. A third alternative was al,o I('ft open
til tllt' i"erf hy whi('h lIt' might accept a 'Iuarter of
tht' lllaxillllllll allotment from his master as a settle-
11I(nt. in COllllllolllise of nil eOlllpulsory relationships.
Ahout six hundred thonsand Peasant, have accepted
this alternative, whieh enahles them to dispen;:e with
the ai(1 of (yurt'mlllent Funds, and till' nee('ssity of
to thp rpstmiuts of ('ollllllunal life upon
frp(, locomotion an(1 Out "I' a total of
tt'll million f:lIllilief;, f;ix 1.a\'" hecome
of t h .. i r thirty-one per
<"pnt. of t1,j, numher became ,0 hy their own
\Oluntllry choi,p. and per cent. were ohligt'd
to purchase by thp ehoice of their old
who elected to ll("{'ept ti,e Tt'rlemption with State
Funds. It nppears from dptailed statement, that
the :;;tate has no.Yanc('!\ fifty-one million Pounds
Sterling for the eompu!"ory IP jPlIlption of thirty-
five millions of aeres, allottf'tl to about thref' and a half
millions of frf't'rl Serf,;. TIl<' ,'Iiee pai,l for redemption
hy the Stat" was about :W.,. ]>"" [lerf'. In tllp ('ai'e of
voluntary aceorde I to nearly two millions
of Serfs, the Landlonl" obtainei twenty per ('ent.
more from the Tenant"
The money ll(h'llIlep(1
thp Serf." to,gpthpr with
thall the Stllte
hy thp Statp
"ix I)pr ('ellt.
a:-::-;ignment.
to rl'ripl'm
i lltpI'P,.t. is
mmle reeoyerahlp ill forty-nin
p
)"par" hy lin allllllal
payment of hI") ,hilling" all(1 a half per ane. whidl
he pays tt) tit.. n!TII'er" of thp Her\pmption Hoarll.
Peasants \"ho hal'p not eleeted till' ')nnrter allotment.
or who han' 110t heen forced to lwleem with State
help, and hare I ttl ('ontinne t.o hI' Perpetnal
Tenants, genpmlly pl'ef,'r Sen'icE' renb to :'I10m'Y
rents, and the :'I [etayer f.mll of whieh
II O'l'ee , he.,t \\'ith th" econornieal condition of tilE'
.. .,
count.ry, i" corning- extensi\'ply into \'('.!;'!lP in l'esp"et
of propertie,,"
The tot<ll pxtent of "etHerl Ianfl" throughout
Rnssift prop!' occupie:l by perpetual Tenants or pro-
prietftry Fl"ep-Holcier,;, i:; ahout sixty Illillion ncr":;.
while the Landlords occupy on their own ne('onnt
two hundred and forty millions. The Cro\\'n Ppa,ants
come nnder a different categ'ory, by their conciition
is being daily assimilated to that of the redeenH'c1
FrE'e" HollIer". Thp total snm ad mnced hy the f-itate,
DI.\\l'II'.\T\()\ OF 1\ Hl'SSIA. 273
and 011 tlIP Innr\s of th .. l'pasnnt,. up to the
I'nd of 1869. was ,ixty-fll'P million Pounds t;terling
out of which till' hnd mortgageR to the
extt'nt of fifty-tlirt'P Illillion,. The wholt> of this money
ha, bet'll raitit'd in the firtit instance by thf' jgsue
of State Bmks Bi and (foH'\"lllnt>lIt Stock at fi ... e
or five ami a half pf'r ct'nt. and fir!' receipts from
tilt> PpII';lInts. spread m'pr fnrty-ninp yenl'R nt
pt>r cent. }It'1' milium, art> expt'cted to clpar off the whole
of these ht'al'Y liabilities. The Capitation Tax, the
Imp!'rial TplTitorial Til x. and thp Hedt'lJJption pay-
ml'nt8, taken I\IPra.!{p from 2is. to 358. per
head of the Rural population, or 18. 6d. to 38. 3d.
p!'f nl'ft>.
We trust tl!!'s!' details of the p!'Ogress of til!' Eman-
l'ipation of the P!'lIsllntry in European HIl,.;sia will
pro I'e of interest for lIIore rt'lISOns than one. Th9fe
can be no douht that, as a ("onsetillence of this
Emlllleipation, tire I{ll>"ian people ha"e thriven in ma-
terial awl commercial prosl't'rity, the
increase of taxation caused hy Foreign Wars, and the
of all Empire which covers nearly a
quater of till' area of two I{rent Contin!'nts. The
Russian Exports of raw Agricultural Pro(luce hav!'
vastly in I'alu/; and amount dnring" the last
tw('nty years, The Cotton Spinning Industry has be-
come II power in "'estern and Central Russia. The
resources, material and moral, of Rmsia were severely
274 ESSAYS INDIAN ECONO;\lICS.
tried in tilt' late Tnrko-Rus,ian ,,'ar, and she stood tbe
test in a way to confirm her as a First Class
"Military Power, which could at any moment send ten
Lakhs of to any portion of her territory
for defensive and aggresssire purposes. The Nihilist
Outrages and Siberian should not in any way be
allowed to come in the way of our appreciation of the
great stridl's whieh Russia b;ls made both at home and
abroad, in the arts of Peace and "rar, during the last
twenty years) and although for the time Absolutism has
triumphed, we may almost with safety prophesy that
a Nation of Peasant Proprietors, with such Democratic
Institutions as the Communal and Cantonal, and Dh-
trict and Territorial Assemblies, will not rest content
till it establishes its control over national affairs to the
displacement of arbitrary or Bureaucratic Power.
A few words more hefore we bring to an end tbis
brief review of the re,'olution effected in Russian Agri-
cultural Economy twenty years ago. One of the
worst effects of Absolute Power is that it warps men's
perceptions in regard to the innatl' dignity of human
nature, and its Commcm idpntity under all manner of
extraneous disguises. The representati,'es of a Ruling
Class soon learn to 1i8P the of the natural
and inhl'rent superiority of Enropean oYer Asiatic
Races. It is urged that hproic remedies like the
Emancipation of Serfs in Rlls,ia, and the creation of
Peasant Proprietors in France and Germany, can safely
nLIXCIPATIOX OF SEHfS IN 275
be undert,tken by the with Public Credit or
Funds, hut that out here in India, the I-Itate, while
claiming a monopoly of Rights, not
incur any sneh respon,ihility, becanse the Indian
Ryot is an improvident, spiritles,. and Peasant,
whose condition has been wretched all along, and can
ne\'er be improved, Our l'pply to this (,harge is
that the French Pp:Jsant was not always the
abstemious and prudent Citizpn that he now is ; there
was a time when Arthur Young mournerl o\'\:r tbe
condition of the Agricultural of France. The
magic (If Property and of Free Institutions have worked
all this wonderful change, The degradation from
which the Hussian Peasant has been freed by a National
Government can scarcely be said to be realized in the
case of the Inflian Peasant" The Impprial (Toyprn-
ment there, ventured in a spirit of statesmanship and
philanthropy to redeem its Serfs, and make them Free
Men, regardless of cost. The Power of the Sow ear a nr!
of the State Landlord in this Country cannot be compared
in the continuity and intensity of its abuse, for one mo-
ment, with the tyranny of the Nobility of Russia, The
dppression, however, snch as it is, in this Country is
real, ami becoming worse every day. Let the I-Itate
interfere not merPly with a minimllmpie(,pmeal dose of
Judiciai Reform, hut by the wholesale dispensation of a
large administrative relief. If it subsidizes or guaran-
tees Private Banks against risk during tile few
276 ES:;A YS 0:\ 1:\ I )[A:\
experimental yean;, allfl them to rid the'
Peasantry of their and if lit the
same time it allows tlie l.and l{el'enue to 11('
redeemer! or
fi o'ure
",
ample fund
permanently st'ttl .. d at a modeml!'
for all, it will provided an
for Agricultural Relief Improvement
without the necessity of borrowing a single rup!'!'
of fre,;h Tilt' Hyot once emandpah'd, and
set on his feet, and inspirt'd with a that the
land is as absolut('ly his as his home or clothes, thert'
Deed never be any apprehension of hi,; running into
debt again and not practising thrift. The awakening
of two hundred millions of the eluth's most gifted
Hace,; will be It triumph of beneficent Government by
til!' side of which the Abolition of f-ilavery in 1833 in
England, or the Slave Emancipation War in America
of 1860, and the contemporaneous St'rf Emancipation
of Russia, will be but child's play. It only needs a
I::Itatesman to gTasp the full height of this argument,
and to restore India to its proud pmdtion as the garden
and granary of the world
PRUSSIAN
AND THE
XI.
LAND LEGISLATION
BENGAL TENANCY
BILL.*
11. I ......
I
x one of our former nlllll hpl', we presented an
outlinp of the great Hpfonn achieved by tbe
(jo,"ernment of Russia about twenty-five years ago,
whi('h result<d in the of many millions
of t hI' prredial Serfs on Crown and the of
the large proprietors in that country. A similar
Ec()nomical Rel"Olution was effected in the early part of
the Century on an equally large scale, and with equally
heneficifll reslllt., in the and Agricultural
Economy of the Kingdom of Pl'I\ssia. To UR in India,
which is now in the aetire throes of II gn'at agricultural
crisis in e\"t'ry portion of its widely Rcattered provinces,
the origin and progTess of this enfranchisement of till'
Prussian Pea.santry possess a 1Il0Te than mere historic!!1
interest amI teach UR lessons which in the intpre,t, of
thi, country we may not ignore without exposing Olll"-
sehes to a great social cataclysm. The agitation in
Bengalln connection with the great question of the
Tenancy Bill will soon come to a head wit.h the return
278 ESSA YS IXDlAX
of the Viceroy and his Council to Calcutta, and the
strife of Class against Class, and of Labour against
Capital, will be fought out to the bittpr pnd. We
feel persuaded that the Land Le,gislation of Prussia in
the early part of this Century furni"hel' the most
striking and historical parallel to this gTE'at im)Jending
cnSlS. There, as in Bengal, the Go\'t'rnJlwnt of the
Country sidl'd with the C[lu,e of the enfranchised
Labonrers as agaiw,t the all-powerful Landlord; there,
as in Bengal, the tradition of a free Pl'asantry in a
remote past, smotheren. but not killed outright hya
long period of depression, furnished the stimulus for
rem'wed efforts on a gTamler scale. This same Problem
is elJUftlly prorninpnt in Contemporary Politics ill other
parts of India, but the Classes representing the
interests of Capital ha"e not tile cohesion and
power which the Bengal Zemintlars posse,,,,, and
which I'stablishes the closest resemblance between
them and the great Feudal Aristrocracy of Prussia.
Of com;;p, tl1l're are deep underlying differl>nces in
the situation which WI' shall notice later on, but the
resemblances arf' sufficiently gTf'at to warrant a carl>-
fnl study of the Prnssian land question by Indian
students. "'e propoHe, accordingly, to furnish a brief
1'eSttnte of this great revolution, which, in its distant
consequences, has raised Prussia from a Second Class
POWf'r to be a leading State of Continental Europe,
and enabled it, with a Confederated Gprmany at its
LA:<;D & THE BE:<;(iAL HILL. 2i9
back, to control the destinies of modern civilization in
th" latter half of this Century.
In the following observatioll", we have in I'iew
th" Prussia of the first Imlf of this Century, before
the great victories of 1866 and 18iO raised it to
towering position. The seeds of Prussia's
1'1'f''''nt adl'ancement were sown in the great humilia-
tion which ol'ertook the country on the battlefield
of Jena, which annihilated for a time the POW"I' of
tilt' Hohenzollern8, and mad" the sport of
:\ul'ol"on's victorious Armies. Alone of the Conti-
JH'ntal howf'wr, hf'r 80Yerf'igns and Genf'rals
took part with Grf'at Britain in the great revenge on
the battlefield of 'Waterloo. It was in this period of
national humilitation that Prussia consigned her desti-
to the grl'at statesmansllip of ll!'r Chancellors
f'tpin and Hardenburg, who, mol'l' tban Bismarck or
Moltkl', may claim thl' glory of having saved thpir
(;ollntr), in the dark hoUl' of ll!'r national humiliation.
The Fpndal Systt-m. and the Social Polity and Agrieul-
tural Eeonomy based on it:; principII's. were buried in
the gl't>at overthrow at Jpna, and when the national
f'nergy had its upheaval, it l'efllst>d to be bound by
tIn" old tmrnmels, and urgently called for a change.
Thl' Cyde of Reform commenced in IBOi, when l\luni-
cipal independence W[lS conferred upon the Towns, in-
vidious privileges rl'garding taxation were abolished,
monopolies and restrictions gaY!' place to a more liberal
280
ESSAYS O:'i' l:'i'DIA:'i'
system of local and general managelJlent, and a more
equitahle Administration of The foundations
of a sy"tem of Univer;;al Conscription, alld general
if not compulsory, Education, had been laid in the
last Century by Frederick the Great, and were yigor-
vusly pu"hecl to completion at this time under the
stress of a great neeesRity. Tlwse Agencies have
contributed, along with other to be more
particularly noticed hereafter, to develop the latent
energies of the IJOpulation in fill The eight
Provinces of the Kingdom, Prussia proper, Posen,
i3ilesia, Pomerania, Brandenburg, f'axony, ". e,t-
phalia. and Rhineland, were about this time sub-
divided into dish'ids; these last contained many Depart-
ments, which were either made' up of Town-
ships or Hural Commulll's. Depart-
ments, and Provinces hflve each thE'ir repre8entatiYe
Councils, C'ollsisting of pril'ileged Landholders, rE'pre-
sentatiws of the old Xobility, and of elE'cted
Representatives of tlw 1>"l'arhnents and Town Com-
munities. The llOlders of jJril'ilpg'ed estfltts, who
exercisE'd vast Judicial and Administratiw PowE'r,
under the Fueclal SptPIl1. hn n' bepl1 !lllowed to retain
a considerahle predominnlll'p ill tlw:w Proyincial and
Local Councils, as also ill the l'Pl'pr House of the
Legislature, but their OtllPI' power" were destroyed by
the Agriculturlll r,pgislation iu the ,:oIllmencement of
Century. ThesE' few remarks upon the genE'ral
rReSS/AX LAXD LEUl'(. & THE HENUAL TENAXCY HILL. 281
l"OUl"8e of Prussian Heform will now prepare the reader
to follow intelligently the gTeat work of Liberation
achieved in conneetion with the Economy
of the conntry, which falls within tlH' Illore imm .. diate
"eope of our prf>gf>nt infJuiry .
..\. brief sUITey must here be til ken of the eondi-
tion of landf>d Property, and distrihution between
the difi"erf'nt of thf> population interf>;;ted in the
ownership and ('ultivation of the soil. The Feudal crm-
eeption of laml was that it determinNl the status of the
owner, and too oftf'n, tlw land lweame th!' unchanging
of fixf>o ownf'Tship, and dirl not follow the
<'hanging lot of the Cultivator, or of the Proprietor.
Lalld in large areas, and bounded by the Natural
limits of ri"ers or mountains, was held in common by
(>ntire commnnitie" of sf'ttlprs, and this common right
was affirmed by an intprellallge of fallow with cnlti-
vated land aftf'r e"pry fil'e or six Yf'ars. fn eonrse
of time, til .. cnltimted land was hroken lip into
smaller lot.s for the larL:'pr ,;pction,; of t \If' Trilw. and
these subseljnpntly hecame mhjects of indi"idual
while the pa8tures and forests were hel(] in common as
h(>forl', and, when the Fpudal Systf'Il1 was organized,
\wcame the Demf'sne Lands of the :-';Ol"ereign, or
:\lanorial Lands of the Barons.
TIle "Testern Provinces of l'rnssia. lying to the
,,"'st of the West'r river, being PHrly colonised by more
civilized Dutch and Flemish Settlen.;, WI,"" more
282 ESSAYS OX IXDIAX
to the position and indppenripncp of individual Pro-
of farms, whilp :-lilesia, Posen, and Pomerania
fPtained mOfe exelusivp!y the old organization of Yillage
Lands, heing owned in common by entire communitips
of In thpse Provinces, the land WII" divid-
ed periodically into lots, which were redistrihllterl. after
intervals of se\"en yean" whilp the pasture lands wpre
used in common. On this conrlition of thin!!", thl:'
Feudal System of thp middlp Agps impressed its stamp
and effectl:'d great modifications" general pfreet
was to destroy or subordinate the ancient righb of small
farmers, as also of Yillage l'ommunitips. to thp domi-
nion of the Lords of "lanors, who monopolized all thp
profits and privileges of the lands included in their
domains, partly by gift of the Crown, partly by forcible
dispossession, and partly by the imposition of hard
conditiolls of militllry and personlll Services, subsf'-
qupntly commuted into paympnts of tithes and other
bmdpns of sprfdom or slavpry. The cultimting
forefeitprl or surrpnderpd his personal frpedom, anrl
became a fixture of the Roil he cultivatpd, \"aluab!p
only fOl" t.he services hp rendPrpd. Hp could not ri"p
supprior to bis low statns, and the aristrocrntic Nobl ..
coulrl ne\"pr forfeit hi" caste. Custom, as settled
by general assent or j ndicial dpcree, was the only restraint
to these exaction" of the Barons, and g-radnally Rural
Soeil:'ty crystallizerl undpr its force into disillct factors.
The personal serl"icl:', were commuted into mOIlPY pay-
PHl"SSIAX U:>in LEI;X. & TilE IlEXliAL TE:>iA;\,CY BILL. 283
ment,;, hnt tlu' nohility continued to baye the monopoly
of the lamb, which they let to tIl<-' Peasantry to
cultil'ate on mo,t disadvantag'eolls t.erms. The
distrihution between the Eastern and ''IT estern
Pro\'inces tim" reappeared under the steadying infiu-
e!lee of custom. The powers of Landlords were less
OllPrOUS, anc\ the sense of property, at best a more
or less limited hereditary, or leasehold llRufruct, and
the of equal succes,ioll to the Peasants'
farm, were mon distinetly and freely recongnizpd in
thp \\T estern than in the Eastern Districts. But as a
general f"ature, the old Cnstomary Law was marly
etiilced by the growth and abuses of the Feudal Rystem.
:0;0 tllat about thE' middle of the last Century, wltE'n
l'ru,,,ia was blessed with a eapable Huler in the person
of Frederick the Great, the largest proportion of
Peasant-estates were suhjeet to the crushing aurl UIl-
Cjue,tioned dominion of tllf' Nobles, and their highest
interest in these lands was a more or less lilllited
usufruct. Gnly a very small proportion of estateR were
Free-holds, or customary hut even here the
owner's powers of alienation were very restricted. :O;ueh
was the miserable eondition of the l'eH;;antl'j' in the
Im;t century, and we haye now to howe tllP gradual
steps by which the Enfrancltisement of IIUlllY millions
of the Peasants, and the bestowal upon them of full
Proprietory Hig,Itt;;, were aeliieved by the gen ius of
Stein and Hardenburg in the early part,of thi;; century.
2!H
ESSA YS 0:'1 J:S DUX E('OXO:'lIfS.
With rare they grasped the fact that
t hI' f'"s('ntial condition of resclling the Country from its
lTIi"erahle was to effed a radical change in
the r('lation,;hil' of til(' soil with the perRon who culti-
YHted it. Th('y la.id hold of tIle principle of Indiddnal
:111d Independent Property in the ,;oil as the cardi-
nal point of tlwir Reform, and ,nhonlinat.ed all other
"on,idpratioll'; to mHin elld. In tIle words of the
til',;t E(liet issuerl hy :-;tpin, tIle g-reat underlying prin-
('il'lp all reform was" to n'mo\'e whHte\'p\, had hitherto
hindered the indiyi(lnal from that
of well-hpinl! which he was capahle
of reachinl! hy exertion" a('eorrling to the bpst
of his ahility." This Edil't, for the fir.-,t time in
"ian Legi"latioll, rpcognise1 the fad t.hat land was
lIIll(le for man, and promis'fl to Pllconrage all facilities
for the IW(jnisition of absolute ownership, and thp frpe
II"P of the land. A" a eOlllInenepment. it \I'as resolvf'tI
that all personal should lw aholi'hed Iwforf'
I RIO, i.e., within thref' Yf'ars from tlw prnl1lnl,gation
of the E(liet. Thp shacklf's thn" 1' ... 11 off' from tllP
h(xlif's allel spirits of lIIany million" of 1I1IIIHlI1 Hping:<,
anti this illsl'il'fltion of 11('\\' f'llPl'g',\' 1,,ll'eri thp
work of Rf'fol'lli. III I RIO. :-;tpin, thp anthor
"I' tlip Etliet of I ROi, WlI' hanished hy thp Em)lf'l'<1I'
);u}xII!'on, fIn,1 Hnrrlf'nh1lrg hp(,lIlI1f' ('j,atH'ellor of till'
Kill:,!c\om 1111,1 his E,li"t,; IlIod"raterl tl,.. "w('f'ping fol'('"
<If till' tir,;t Edict hy tl,P ad"I,(i<lll "f " 111"1'1' ('alltinl\-
l'H[,,",IA:" I.A:"() & THE TENANCY IHLL. 28.S
l'l'liey. wbich f'tf"l't!'d tit .. SHIIII\ .. nd g-radnally. withl'ut
tbE' ri,k of disrnptil'n niH! Yil'l"l)cf'. A ,gradual abl'li-
tion of K .. r\'ic .. and Hights of Comlllon to
h .. by tht's!> famouR Edicts for th .. " Proml'-
til'n of Agril'ultnl'e" and ,. for H!'gnlating the
Helation, of Landlords and P .. asants." This If'gisla-
tion of 1807 and 1810 was snhsE'qu .. ntly carri .. d out
by nnnwrollS snpl'lE'l!lpntal'Y Edicts. alld by thE' inau-
guration of plans f(J\' subsidizing-, with tht' ht'lp of
."'tatt' Fuml", uJ1(h"rtakillg-,; Ii)}' the l'l'omotion of agri-
l'ultmal pro!'l'f'rity wbich w!'r .. b .. yond thp Inf'ans of
th .. PeR-ant Proprietor" so fr .... d from their F .. udal
Bondag ...
\\'p "hall nl'W "tld!'p",; onn<f'ln's tl' a doser Cl'n-
,ideration of tIl(-' IllPthoc\" followed out hy the
.ian Gow'rnrnent ill effect to th..,'e great Edicb,
which ahoJish .. d Kerfdolll or pe-!'Ronal Spl'\'ice-s, l'onsoli-
clate-d the P .. asant'> common Right,;, and encourag .. d
('["edit Organil.ation,;. The- ,,,niding principle in regard
to the first of tlws .. l'hangf's was that all that is com-
mon is hurtful to tllP indiridnal. and that perfe-ct
fl'eedom of agricultural orgnanization ('onstitutf'd the
of the Rnrlll pOl,nlation, and of the Nation at
large. To 1111 on l'e-r"onl1l free-
clorn,-to remo,"e- on right" of property in
land,-to no,lien' the Peasants from heing tht> sol ..
dass liable to the payment of Stat .. charge&,-to buy
out the rights of the Lords of owr their
286
ESSA YS ECONO:'IIlCS.
]>pasant Serfs' services,-and turn these into frl'e
Proprietors,-to commute the Real charges and ser-
vices,-to consolidate rights of common,-and to
facilitate the improvement of farms and other landed
properties-these were the manifold methods by which
effect was v;iven to the Edicts of 1807 and 1810. A
britf notice of the Legislation in each of these direc-
tions will illustrate the grpahH'ss of the work clone in
Prllssia.
Personal servitude was abolishpd in 1807, and all
servitude attached to the land was made to cease from
1810. Real Charges, which constitntpd the ('onditions
on which the Peasants held their lands, wpre not
abolishpd at tllis parly epoch. By the old customary
law, the power of pviction was ullhamperpd. f'XCPl't by
the condition that the Landlord should find a
new Peasant for the cultivation of the soil. "Then
absolute freedom of alienation WIlS allowed, therE'
was a g"fE'at danger that the Landlonls would buy
out or evict thpir old Tpnants, and retain the vaca-
tpd lands in thpir own The Erliet of 1807
aet.'ordingly the freprlolll, with ('ondi-
tion in favour of all Peasants who had any hpreditary
or particular intprest in the lands, that these land,
((Jllld not bl-' ahsorhl-'d pxcppt hy the free ("onsent of
the parties. If tIlt' Lord had satisfil-'d all thE' daillls
of the Peasant l'o,spssors, he was l'prmittPf\ to eOll\prt
,,,,.j, lands into larg
p
]>pasant Thp Edi('t of
!'HrSSIA:" I..\XIlI.E(iX. & TilE HE:"\iAL TEXA:"CY Bll.!.. 28i
I All introdncpd a fmtller modification. In conse-
'lllPncp of the op(,rRtion of the form('r Erlict, two
pII.rti('s, werp as hal'ing co-eqnfll interest in
land, the Lord entitlpd to the real (harges ancl
sefl'ices, but burdened with an ohligation not to absorb
Peasant, properties, and the necessity of finding a
eultimtor for them, and the Hereditary or leasehold
Peasant hurdened with the charges and serYitucles
mentioned ahoye. If the parties agreed to a mutual
tiI", gave full liberty to the
Landlord" to earry out the agreempnt. The rights of
Landlords to bp compensatt'd were (1) tiIp right of
property, (2) claim for (3) the clues in
monpy and kind, (4) farm stock and (5) renl "enices.
The rights of ti,e Ppasant whieh had to he \'alupll for
cOlOpPllsation purposes wpre (l) claim for support in
(2) tiIp claim for wood and forest produce,
(3) ohl igation on the Lord to build ;mel repair
buildings, (4) on the Lord to pay taxes,
(5) and cpI1ain rights of grazing. A" some of the,;e
rights were not capahle of valuation, tbe I'ltTtif's were
left to arrangp tl,eir differpncps amicably, otherwise
thl' t;tatp intervenPfl, A balanee was struck between
theAe mutual right" and obligations, and as this
balancp was against the Peasant Proprietor, a
eommutation was effected by the Peasant's foregoing
one-third of a Free or Copy-held Holding and one half
of the other Holdings to his Lord, after which both
288
ESSAY.'; 0:\ 1:\ IJIA:\ ECO:\mllCS.
parties were left free to act as tlu"ir int,>rpst:' didat,.d.
This commutation lI'a' also lIIarle p:lyahle in tit,.
shape of a rent ch'llge. In "alning the interpst., of
the Peasant, the farm bnilrlings were not incll\ded.
l\'1oney commutations weI''' not thonght of
the Peasants had no rnoll"'y to ,pare. whil ... tlte land
in their possession had little mIlle. T,) check any
sudden disturbanep of propt'rtie,;, t hI' I iberty of
commuting was at tir.,t, allowpd to holders of
and taxa hIe I'ropertiE's. awl \Vas suhs .. -
quelltly extended to slIIaller farllls. In 1815, it IVa,
ordered that rents in kind and monpy wnb, should bp
E'xtinguished, or marl,. terminablp hy their possessor .
who were permittpd to rp(,pivp twenty-Jhe ypars'
value by way of redplllption. In 18-19, a COllllnissioll,
compo..;ed of Rent R,.ct'i,pr.' and Hent in equal
was appointpd, who fixp,l tht' form of
commut.ltiOIl, and till' ratps find prices SO fixpd wer,.
made Oil all p'll'tips. It was in thpse
various ways that til ... ht'IlPfit" of per,;onal freedom, free
use amI frep tmn"fer of land, the abolition of all
personal dj,;tinction,; of mn k ami statu,; a>:
rpgulatillg' the capaeity for holding; hwd" and
the aholition of th,. rights of wen'
sE'cured, and restrietions on ab,;orption of
Peasant Propertips wpre gradually lessened. It to
be noted that, as was the case latpr Oil in Russia, no
eompensation was allowpd for the abolition of personal
L.\'i() LEG:-r, &: THE BE",GAL TEJliAJliCY HILL, 289
TllP f.;prf, on Crown Laml" wp),p similllrly
spt frpp In- an Ad of Statf', All l'P,trictions in thf'
intt'n'''t" of Statp Poli(':', "wll ", tile rE''llli,ition of
sllnction for Illienation npon tllP t nllL,fpr of 111m] wpre
aholisherl hy the Edict of 18(31, Hp,tridiolls as to tIlE'
use ofPri,'ate Forests were "illliJ"rly dOllp Il\l'ay with,
It was this last Edict of 1 ill) 1 that '''lH'tionpd tilE'
formation of AgricnUnral :\"ociatioll' of II'hiell 80
much ",pita, he!'n marlp ill suhse!jIIPllt ypnr" Of
eourse, it i, not to he stll'l'0, .. d. that \\"'rp no
alternations of Policy in re'ppet of til;, lilwml and
far-readJing Lf'gislation. Thprp werp nUItlE'rOll, ex-
amples of retrog-ratle Amf'ndllwnt;; in 1815 and 1851,
hilt on the WitO]I' tllP PoliC',\' of cOlll'el'ting P"asant
Holdings into :\hsolutr' I'ml,(>rt; .. ,; was honestly
carried out, till in 18GO tillitl Leg'islation all the
subject completerl the "l)llllllPl,,'pd ,'ixty F'al's
befo],e, anll ahrJli,<I1Prl nil ,,,,ti,,,,,, of F<>nd,,] Hpstrnints
upon the power, both of 1""I<I),,)'(b and l'eH ,"lll b.
Thp commutation of He:d ('hargp, Ira, a more
diffi"nlt !,]'oblf-'lll, and tll!' Statf' JIHrl to intervene by
px!,c]'t, to aet. m; arhitrators. and fixing
offi .. i:d lJlice,.; anrl rate,' of eompen,ation when parties
would not agl'pe. ""IIf'n the Rellt Charge so commu-
ted did 110t pxceer! two-thirds of thf' Vllluf' of the land,
it, payment \l'ns undertaken by the Rent Charge
Ban ki;, If it excepdE'C1 two-thirds the Bank authori-
ties might refuse ach'ances. TllE' arrangements for the
290
ESSAYS ON INDIAN ECONOMICS.
settlement undertaken in the early part of the century
were carried out by an aliotment of portions of Pea-
sants' Holdings to the Vmdlords, varying from one-
third to half of the lands in their possession. The
Legi;;lation of 1850 and subsequent years interposed
the machinery of Courts and Arbitrators to dt'tennine
money compensations for aholished Rent Charges, and
provided the machinery of State-subsidized Rent Cbarge
Banks to help the Peasant to liquidate his liabilities
at his convenience, without any injustice to the Land-
lord. Of course, these great Reforms were not carried
out all at once throughont the Conntry. Each Pro-
vince was dealt with separately after rIue consideration
of its circumstances.
The abolition of the Rights of Common and For-
est Rights was secured on a principle similar to that
which was applied w efft'ctively in re;opect of Lands,
Servitudes, and Rent Charges. The interest of every
sharer in these Rights of Common was valued, and
to the owner of the same an e(jui \"alent piece of land
was allotted, and whpn the laud was insufficient
for such a purpose, 11 Hent
in his favour, and thE',;e Hpllt
quently commuted at tWE'nty
Charge was rr!'ated
Charges were subse-
or twenty-fiTP y!'ars'
purchase. In carrying ont tllt'sp arrangements, parties
were E'nconraged to ('Olne to a settlemt'nt by which,
as far as possible, their Holdings would be consoli-
dated, and the views of a majority of the intere"ted
PRl:SSIA:.I LA:'iD LEG!\". &; THE BEIWAL TENANCY HILL. 291
were allowpd to !,rPI"ail, in re"ped of suell
('onwlidation or Exdmnge arrangPIJlPnt". Thi'l'rinci-
1'1 .. of individual to public ri;..:"ht, and
cOllwni .. ncP8 formed the of the cOll11JllIsory
Drainage and Irrigation of Improl"Plllf'nt. as
also of Fon'st growth and Conspnancy which OIl a
grand scale wpre at this time undertakpn by GOI-ern-
ment, whilp "mailer works were prornotPd by compul-
llory or voluntary Associations of intprpsted Land-
-owners. \\'hPll the did not uml .. rtakp improve-
ments, it, at fir4, subsidized th .. m by handsomp
admnces of Public Loans, and more tJ.an fifty Lakbs
of Rupees were advanced in t.his way in sel"enteen
years (1850-1867). The payments made in satis-
faction of these dpmanrls as thpy callie in, wprp
again advanced by thp Dppartrnpnt of Agriculture,
which had the charge of thpse Funds, for hell,ing
"imilar fresh undertakings" Bpsides thpsp c]ired ;;uh-
sidies, morp recently tht' Prussian Government has
sought to create a spirit of ,;df-help by spcuring to
,uch ac\I'ances, when made by private indil"idllals for
l'urpost's of improvemt'uts, paramount rights el"ell
against rnortgaget's, for purposes of recovery, and has also
pmpowerpc\ such Associations to issue mortgage Dpbpn-
tur!'s, whieh were at first secured by a minimum State
guarante
p
This condition, hOWl'I"t'!", has of lat .. been
dispem.ed with as no longpr necpssary. The I.and Tax,
which prpssea heavily in former till1PR, was also esta-
ESSAYS 0:-; I:I"DIA:I" ECO:l"O)II('S.
on a filir and certain basis, being' two to four
per cent. on the "MIne of the net yield, the incidencf
of the Tax on Land being made equal to the weight
of taxation on other kinds of property. It is no \\'on-
dpr that, under snch stimulus, real Credit Institutiom.
Mortgage Debenture Banks, Rent Charge Banks, and
Sltlf-Iwlp Assoeiatiolls of all sorts. werl' promoterl all
owr the country, providing the machinery and t),p
'funds hy which thp great national aims of the Legi,-
'Iaturl' were facilitated hy II free exchange of Capital.
with tllP least posliible risk and the largest possiblt'
rt'tuTIls.
This hrief snmmary of the Land Legislation of
Prus;;ia will not hf' complete without some reference to
statistical figuers, showing how far, during the last
sixty that these great Agencies of Enfranchise-
ment ha\'e heen in operation, the work of Rf'form has
been cOIIl],letecl. The total acreage of the kingdom
of Prussia hali been estimated to be sewnty-thre!'
millions of acres, and out of this \'ast total, nearly
forty-fi VI' mill ion R of acres of land were in some form
or other brought nnder the infiuenee of this special
Legiillation. N('arly thirteen Lakhs of persons have
commuted Team of Hand Seniees. by ('ollSenting to
land alIotmentR or making- money paYlIlents. This
change alone represents a saying of the labours of the
Peasant class for thirty millions of day". T n of
Rights of Common, seventeen Lakhs of owners consoli-
PRl'SSIAN LAND LEGN. &; THE BENGAL TENA:>ICY IlILL. 293
dated or settled their Hight of Common oYer forty-one
and a hnlf million a(']'p" rluring the whole of this
period of sixty Only one-twentieth of this work
remaillPd to he donp in 186i. ThE' tpndeney
dismemherment IIHS heen tJIll' ('ounter-balanced by thp
encouragement toward, ('on,olidatioll, and in the end
it has hppn fouml that thp dangpr of pxcE'ssi,'e sub-
division of Land has 11('pn ftl'oid"cl. In 1860 fiftE'pn
per l'E'nt. of the total ar";1 of sixt)"-five and
a half millions of cnltnmblp lam] belongp(l to thp
Crown, the State ForpRts, Ol' 10 tllP Churcb, or to
municipalities ; per ('ellt., or twpnty-
eight to nOli-peasant Le.,
the holders of large e:itates; thirty-fil'e per cent., or
twenty-foul' millions, wer> Team Farms of Pen,ant
Propriptors, and fiye pf'r ('pnt. or tltrep and a half
millions, IVpre small"r Holdings, The Hggrpgate
average of l'ellsllnt Propert.if''; thus nparly tllP same
as that of large Prol'f'rtif's, Thp transfer of land
effected by the DisfnIneliisement Legi"lation may thus
be said to have divided the land equally
between the rich LnIHllnnl, and tlH' poor Free men,
There are, now about tiftPPll thollf;and owners of larger
and more thai I fOllr Lnkhsof Pro-
prietor", who oll'n frolll hr"nty 10 tiro Illlnr]rf'fl Hcres,
Therp arp, fnrther, fUllrtpPll of I'Pf,,;a.nt Pro-
prietors with only sixty tllfJ11,;aml Tenant, of i'llI'Hior
Holdpl's, anrl Hbollt twellty Laklls of A::tri('nltural
294 ESSAYS OX ISnIAX F.(,O:-lQ)Il(,S.
The proportion of Rural to l'rban popu-
lation in Prussia is sp\"pnty p"'l" ('pnt. of thp former
to thilty per cpnt. of tilP latter. Hpary ind .. htt'rlness,
the attendant eril of small Proprietors, hils bepn lound
to prevail in Pru"ia ns in other ('onntries. thongh the
TPdeeming feature ahout Prussian Economy. is, that
this hils been dup chiplly to till' efforts of
the people to IihPTatp HIld irnprtJn' thpir Holdings,
and it has a tpudeney to diminisll. ns thp eharges
created by the Land Leg"i,llltion 1111(1 hy 10HllS bor-
rower! for impro\'ement HTe being" grarlually rp(\ppmPd.
Taking the value of landed pstates at ;;p\"en hundrt'd
milliom, thE' amount of mortgage c\pht was three
hundrerl and seH'nty-fh-e milliolls. of which about
twenty-fire millions wpre TPprp,pntpc\ by till' Loans
made hy Rent Charge flnd Dpbpntllrp BalIk,. and tlte
fPmaining threE' hunrlrell allcl fifty miJlioll" wer .. nul'-
to Private Tlte proportion of
Debt to the nllu .. of laBd was fornlerly two-thirds in
plilep of the ]1l""SPllt proportion of OliP lwlf. The-
fi!?:nres aho\"p, include the rlE'hts dllf' from the-
Pri\-ilegl:'d Holding", II" ,t/so frolll Pp>l'ant Prol'f'rtj",.
Pe-fl,;ant Propertip; are. in fact, ill Illnny part;; of Ow
conn try I ... ,,, IWilvily dwrg"('d than PridJpged E"tat""
In the wordH of a Parlialllentary BIlle-book, from
whieh DlIIch of thi., information "n.' h"f'n g<lthered, it
may he stntprl, in eonducling this Te"jew of l'rusRian
],egisJIl tion. that the PTnssian K ation, in the parly
PHl'SSIAX LA:\lJ LEti:\". & TIlE BE:'I"tiAL TEl'(AXCY IlII.L. 295
part of' the ct'ntUl'Y, fouml itBelf burdened by a cum-
Ft'udal ami writhing in the agon;t's
of Serfdom. Statesmell, accordingly, set
tht'lllSt'ht's to a manifold task, wllieit in sixty years
was fnlly aCl'olll[llisht'd. the task of converting the
Feudal Serf into it Free Proprietor, of removing the
rf'i'triction;; which the Pri\'ilpged Owners of land
f"lt so heavily, and making them unencumbered Lords
of their properties, of abolishing all the confusion
of CllHrges, and Services, of relaxing
Entails, of .commuting Rights of Common, and of
t'nconraging improvements with State help and State
compulsion, and facilitating the frE'e exchange of land.
And all these great Hefonns, have been carried out
without illll'o"ing any ""riolls burden on the State's
rpsources, without Hn)' yiolent disrupt.ion of the
eeollolllieal r"lations of different Classes of Society,
ami without the shoek of Reyolution or internecine
class strug,gles.
Here in India, Wi' sadly need the lwll' of ;;imilaz"
With II growing' Population, and
lilflitt'c] reSOllrCf':<, the stru,ggle for existence j, lllrpndy
bf'ing felt, as a strain on tlw fiocial M"an-
\Vhilf', the f'xperimt'nts that haw hpen undertaken to
rempdy these disorders arf' not sugg'ested by any broad
view of the future, or any jU);t considpratioll for vested
rights. refer, especially, in these remarks to the
proposed Legislation in the Lower Provinces of Bengal
296
ICSSAYS 0:01
and BE'har, wbich prE"E'nt til" largE"t to tllp
condition of in tit" '>,nly part of the Ct'ntury.
There, as herf', the oM ,n,.tomary 11gilts of property
have suffered a riel're"i,m from long disusf', and the
rise of a monE'yed an(l privilege,) of who
have invested in land on tht' faith of salt'mn l'ledp;p"
and are naturally to turn th"ir bargain to tllf'ir
lwst advantage. This oftf'n press bf'a vily, as ill
Behar, 111'011 the Peasant majority of thf' population.
There ,'an Ilf' no douht that \'('ml'dbl Legi,lation j,
urgently relJuired to elteck thE"" e\'il", and, quitt' inrl,,-
pendently of the slIvin;.:; ('Ian'" contained in tl,\' Law of
1793, which extended the Pf'rmanf'ntSettlernent to tbe,p
Provinces, therE' can Ilf' no doubt that thf' Go\'ernnlE'nt.
in its capacity as has eYf'ry right to unclt'r-
take I.e:;islation intender! to remove adll1it(E'd anll
general grie\ances. ". E' cannot, howt'Yer, apl"'oyt' of
the direction and spirit of the Legislation emhorlied in
the proposals which will soon come on for di"cussion
before the Supereme Lf'gi.,lati\'/' Council. in r{'spect of
this Bf'ngal Tenancy Bill. Th .. llropo,ed Legislation
is based on lint's which Me diarndrimlly opPoSf'd to
the principIf's Wf' bayf' rle,erihed ahow, al' ha\'ing
infiueneed the gTf'at Prns,irm Chancellors. While thE'
Qne sought to clisencum h"r Lnwl, nnd pncourage tile
growth of ahsolute property hoth in the Landlord
class and in the Pea,antry, tl.e proposals embodied
in the Tenancy Bill aI''' illtenriPl] to increase these
PIWSSU.:<i L.!.:<in LEl;:<i. & THE BE:-iGAL TENANCY BILL. 297
mutual pncumbmncps and the f'xisting coml,lexity of
rights and intl'l'l'st.,. "'hill' thl' L<'.2;if'lation
was guided hy tllf' prinei!,lf' of alll)wing coml'f'mation
for thf' ahol ition of a II Higllts, Sf'n'icf's, and Chm"gt's
which were not of tltt' lIatnrf> of pt'ri;(JIlal slavery,
the Bengal Prol'o"al" rt'jPf't all idell of compensation.
"Thilf> thf> Prnssian :-;tptesmen hal'p tried their
best to minimizt> executin> intprferf'n<'p in the settle-
ment of ('In" I'elations, tlIf' theory, underlying the
Bengal Bill, is that tIlt' :-;tate Executivt' alHl Judicial
maehinery must prescribe and regulate t'very little
incident of tlw hetwf'en the Owners and
Tenants of land. Tlw onl\' rf>,mlt, and, to some extent,
the intended r"'''llt, will IJP that the f>"isting confu-
sion will he still more eonfonndf>d, dass will hf>
set against cla"s, the of formN pledges
will be violated, tIll' Landlords rninf>d without com-
pensation, and to thl' cIa" of Rent-rE'ceiving
PensiOlwrs, and tllf> HaYllts tanght to look morE' and
more to the Stat.E' thf>ir sole Landlord, without ac-
quiring tIlE' tminin,g" nE'('eS";HY to raise t hE'1n to a
sense of tht'ir l'm,it.ion. "'.. 11 try to lila ke our
meaning more plain in tlle ";E''l\wl of t hi,.; pfll'f>L We
shall only prt'mise he!'e, with II l'ipII- to prE'I'E'Ilt. all
possible rnisundprstnllfling, that we do not side with
the optimist ad I"Ocat.f>S of tIlE' existing conditioll of
things. WE' frpely an nrg"f'nt Refi)l'lll. and
a radical Rf>fonn, is called foJ', hilt onr ('onkldion is
298 ESSAYS 0:" 1:"IlIA:" Eco:"mUC';.
that the I on which thp Legi,.;]atnr.. proposes b,
proceed are radieally miKtakpll, and will \lpn'r Ipad t ..
any real settlement of thp present displlte".
The first. portion of the Tenancy Bill is devoted b)
the considpration of Khamar and Hayati land". What
it to do in this COllneetion is not only to register
existing' Rights and Tt>mu'p", hilt to stimulate the
growth of Rayatwari Holdings. and to eon tract the
area of Khamar lanel, that i,<, the land in the aetual
possession of the proprietor, amI not lpt by him to a
Hyot for eultivation. The Law is to presllme that all
land not shown to he Khamar i" Hayati land. The
Landlord's powers o\'er Khalllar lands are absolute,
while in regard to Hayati lands. llis powers will be
greatly controlled hy thE> propo"e(l Lpgislation. E,'pn
when Rayati lawl is forefeited fot' default in the pay-
ment of Hevenllf', and bOIl<>ht in hv thp Landlord, it
.
cannot Iw divested of its Hayati character, Ilnless the
Landlord keeps it in his own hanclR, The moment he
If>ts it to a Tenant, it,; lhyati character rel'in'" by
force of la w.
if; concerned,
So far iI" thE' record of existino- rio'hts
... ,..,
we see no reason to objE'ct to the pfOJlO-
of the (iovernment. But, this f>xaggerated valup
Het upon the Iwluction of laud, and th ..
crf>ation of nf>W Rayati lall(l<, appears to ns to hI"
thorong'hly wrong' in principle. It is truE', somp cns-
- tomary incident of ancient times i,; pleaded as 8n
, f>xcuse for the re,'iml of this Policy, But circum-
PRl'SSIAX LAX[) LEUX. & THE HE:'((rAI, TE.\'A:,(CY HILL. 299
ha\"e so altered ,incE' tll!'Il, that it;; l'eyiYal
cannot fail to be misehiE'\'ons, Onl' own yiew of th ...
matter is that, whilE' respe('tillg nil existing m]('ient
rights, there shoulct Iw IlO llrtificial (lis('onragelllE'llt to
the growth of ahsolnt... propE'rty in land. If the
Rayati laml is in,uffil'ient to lllt-pt the ell:isting wants
of an increasing populati')ll, a II llwans encourage
tIl(> Hyots to buy KhallLfL], lanrl,: for eonsideration, by
paying compensation regulated on a system of Real
ChargE'S, and extended OVPL' a lon,g t",rm, to the Land-
lord class, who lHtye in\'est .. d in laml on the faith of a
striet observance of thpj]' purchased Hights. Hayati
land In'e-Hupposes a limitation and complexity of
Hights, while the tendency of all remedial Legislation
should he to make liS mally' Holdings, Khamar or
Jemit, as possihle, Land ,gaills in p\"pry way. ane!
Im'es nothing hy heing' Jnach.. thE' absolutE' l'rol'nty of
tilE' owner. Tit" Legislation wns h",,,d on
this principle, and WP e'lll 11 ot but strongly dE'l'rpc:ate
the snggestion tlwt a eontmry Policy ,holll,1 I)t'
inangurllted in' Bellgal at tlJis rlHY, TIlE' l'l'o]JI'tion
of Khamar'land is adllally so sLIlall, heing It'", titan
ten per cent., that it appean; to ns to be t:'xt]'ellLPly
llllfortunate that this "pple of disc-onl should bE'
wantonly thrown as a tE'mptation ill the \I-ayof tht:'
a,grieultural population of' Bengal and Behar.
The next two chapters of the Bill rE'iate to the
rights ot subordinate Tenure-holdE'rs and are- open to
300 0:-1 INDlA:'I
the ohjection, that the Bill to make much
more complex the reliltions of part ips in place of
plifying them, and allows relief to onp class at the
expense of another without providing comppmation. It
is well-known that the Permanent Zaminrlari
mpnt of 1793 was made on thp of exacting nine-
tenths of the average Revennp of the estate as Land
'Tax, and allowing one-tenth to the Zamindllr for the
expenses of collection, and tl ... ri:.;k and responsibility
he incurred on that acconnt. The Zamillaars crpated
subordinate Tenure on the sallie principle of reeovering
a fixed and a much larger jll'oj'ortion of thp Rp\'pIlIlP.
'This reservation, it i,; now propose,l to lilllit hy Hxing
thirty per cent. a,; the limit Df th" profit,; of a
natp Tenure-holder, Whl('h shonl(! not 1)(' encro;lchNl
upon by any enhancement of the l'a),lllpnt claimable
hy the Zamindar from !tim. In the ell>''' of J;mgalhari,
or waste lands genernlly ref'laimptl at thp pXl'ense of
the Zamindar, thi, limit is fixed at twenty per cent.
On'r and above these pro\'i,;ions, it i" proposed to rule
that no enhancement shall at onc" clonhle the fonner
rate, and that no pnhancement shall take )llace <,xcept
at the int<'j'\,t! of ten years. At e\'ery 'tage of the
]>1'O('''''S, t l,e ('i l'il Court's illten'ention i" mHlle C'omplll-
sory. and in the mattpr of .. tlwse tenure
.. . -
rights and tlwir transfers, tIlt' ('nlh'dor's authority
interpo,,'.j at every step. It h", heen estimated by
competent authorities that there are in all about eleven
I'Hl"SSIAX U:;ll LEI'S. & THE BEl'iI'AL TESAXCY BlLL. 301
awl olle-third I.ak}"" of 'l'tcnure-Iloldel'!' Ilgnimt two
Hnd a half Lakh, of Zamindars ano! Reyenne-freeholtierB,
lind that tlley repreReut an income of eight Crore," of
HB thirteen Crore" wllid, j, the income
of and of Revenue-fi" .. p Lands. Tl,ei'co
are thns a ,'ery important class, and arp
well aill., to tlllwenre of their own interests. By theil"
erlllcatiOlI '1ll(1 intf'lIi,gpncf', thp.\" are far reUlOved from
thf' statt of I,ell,}ei's dpppnrlencp, which to a larw'
extpnt i" plf'nded ai' a justification for the Ilctin' inter-
fprem' .. of the (jo'"ernnlPnt on bellalf of the Ryots, or
othpr of tile Thp ellllllge, if necessllry,
in their condition should han' been in the diredion of
pn" bliug tItese <:lasses to bf'cOInP full Proprietors by
pri,"ate arrangement with the Zamindars, or by I'prlllit-
ting eompulsory lJUrchllse on the basis of it fi,iI' and
eljnitHble compemation. A balance of Illlltual liahili-
tic's and advantages onght to be struck, and IIccording
as that halance turn,; in fayonr of the Z'lmindar or tht'
Tenure-holder. il money payment should he
made in a IUlllp >'nm, or a Rent Charge spread OYpr
years, or an AIIotnlPnt marie of an equivalent
portion of land, full owed thereaftpl' hy an extinction
of all tlop of "nbordination and
rliyision of intPl'ests and rights. Anyone of thest'
would certainly hayt' a morl' satisfactory
result in ti,e w'neral advancement of ti,e country, than
the IJlan of tinkering with existing rights ill the
302 ES!"AY" 0:-1 lXnIAX ECOXmllCS.
intf're,;t:< of Oll" ('Ia,,", to thl' l,rl'jnrli('e ()f
the Zaminrlar", H' at pre;;ent l'rol'o"ed. The perpetual
intt'qlo"ition of ('i I'il amI HI'Yennf' Anthoritil'8
rnn 01lly n"1I1t 111 paralyzing- pri\'atp t'fi(Jrk and
in")'t-rl"illc: tl,P '1'11:<1: of rlel'en,h'nee on tht' Statf' a, thl'
only rp:;llloitor Ilf l'ril'atl' right", than wbil,b llotl1ing
can in tllf' ,-nd I'rol'f' llIorp l,n-judicial to all c:1a"es
('OliI'HIlf'd,
By far thl' ItlO,t illl1'0rtant portion of till' Bill
to tl,p lJO"ition of tllP Hyok The eddent and a\'owed
illh-ntion of tlll' prol'o:<l'rl Lf'gislation i, to be
th!" creation of a 1arc:p ,'la", of what are calII'd (Iccu-
pamy Hyots. TIlt' (lId Khoodkha"t Hyot, 110 (10\1ht.
did POS,I''''' clIstomary ri:;ilt" and intl'rests in Land long
hefore tllP Pprmanf'nt Sf'ttlPment was made, and he WIIS
not in l'rincil'le suhject to arbitrary enhal1cernl'lIt and
p\'idiun. Hi;:; position \ras seriou"ly damaged by thf
Settlenwilt. which, in order to ,eenr!" the prompt PIlY-
ment of the Revenue lInder the Sun,et Law. arm{'d
Zamimlars ,,"jtlt extraor(\inary pow"r'. and these
madt' eneroaellllwllt" on the Hyot's independ-
encE'. Tht' Khoudkha"t Hyo!i; WE'r" likE' thE' ::\lirasdars of
thE' De('c'an. Jw;t as in C'om;e'llIPlleE' of the BombllY
Sune), S"ttJement, 1Iira,c1ar, han' dj,;ppeared, and the
olrl Upa;'i Tenants hft\'e been turner] into Oc('upancy-
hold"r,;, the old Khooc1kha,t Ryots wpre by force of
r:in'\llllstanees trnnsformed tu ft lnrge E'xtent into
Tenants-at-will. After a long period of rlepression,
PRUSSIAS LASD,LEUN. &, THE BENGAL TENANCY BILL. 303
Ad X. of 1859 first conferred Occupancy Rights on all
Hyots who occupied any particular Holding for twelve
at a fixed rental, and it is now pro)Jospd to confer
this Occupancy Right on all Ryots who are residents in
,"tIle "iIIag'e for a term of twelve years. The status of
the holder df'termines the status of the Holding', and
confers on tIle land a pridleged dlllracter, thus revers-
ing all past traditions and inmriable practice, by which
the Tenure of tbe land regulated the status of the
c!llthator. The Bill further proposes to confer special
prhileges upon this class. Their lands will be heridi-
tahle as well as freely transferahle and they may also
suhlet the land without restriticons. Their rents can
be raised, hut the limitations are :iO many and so com-
plicatf'd, that prinlte contract will cease to regulate
these enhancements in the majority of cases, and the
interposition of Settlement Officers and Cil'il Courts
will become a sine qnn non at e\'ery step. The occu-
pancy Ryot's rent eannot be increased except after a
resort to Courts; he cannot he ejected e\'en for default
in payment, except by a similar interposition. The
right of pre-emption, left to the Landlord as a coun-
terpoise to these large powE'rs. is similarly eloggpd
with ('onditons, so that it ean only he exerci,e(\ with
safety after a resort to the Courtf'. ThE' I'(>ry pnce
is to be fixed by the if partiE'S do not agree,
as they will not in till:' majority of east',-. EWJ1
when the Landlord hllp in the land, tllp moment he
304
I!'ts it to a third I,arh.
oi a J{yr,t a' fl't'l-'lv ;"
lli;lt 1'1I1'h' ;II"jlliI'P"
Ill' h,,<1 '1)('rp ..
hy frolll tllP fom1l'r II(("l]llmt. 111 rp(!anl to
!'nhancPIIJPllts "f .... IIt. it i" I'I'IJ\ill ... d that no rpnt can
pxeeed onp fifth of !.liP that. 110 I-'nlulll(' ....
ment ('an doubl" tll(' J'PlJt; thRt 110 I'IIIJlllI( ... lJll-'lIt eall
take placp !'X(,I'l't hy n eOlltl'l\('t 111'1'1'0\1'(1 of hy til<'
H!'\'enut' ('ollt'doL or a rll-'('\"t-'t-' IIf ('ollrt: ami tllf'
Rpn'llllt' ('ollt'dllr i, to dt'tt'rllliJl<' tht' I'lItt'i; of laTilI
up to which t'llhnn('t'II"'lIt" !IIay ht' !IIaot'. and til!',/:,
mtt's are to be <Il'et'l'ted by th .. ('iyil ('ourt... It" eOIl-
elusive in all An inert'a,,1-' of rent daimed by
of a gfll!'ral ri"p of l'ri('t'" i, to Ill-' "itar!'d balf
and hHlf, pro\'idt'r1 thp half is 1I0t Illor .. than till' pro-
portion of tl,p ri,,, of l'ri('ps to old l'ri('!'''. ratl'
can b!' uOllhlpd nt "inglt' !'nhanl'plJlt'nt, lind all
enbancempnt OIll'1-' 1""rll-' !ll1I"t holtl ,good for tt'n y!'ar .. ,
Til!'s!' an' ,omt' of thp intpndt'f\ h) pro-
tect tbe intt'rt'st" of till' Hyot dllss!'s. (Jur o\;jt'ction
to the change is not ha"pII on any indiff!'r!'ut'!' to tIll'
interests of th!' llyot,. Thes!' llyots numllt'r more
than ten in all and pay a rt'ntal of twenty-one
millions to th!' Z!'mindars find T .. and, as
we have "aid, t.hpy holll nin!'ty per cent. of tllP lands
owned by the Zemindar". Sueh ,tnpendons int!'rests
claim all tlLe prot!'dion which farsight!'d stat!'sman-
ship can confer on tht'm. (luI' prineipal cont!'ntion is
that the Landlord's rights, sanctioned by usag!' and by.
LA:'iJ) LE(;:'I. & TilE BENGAL TENAl'>CY BILL. 305
law. will Ill' lHin'n,piy H/fpdpd by tilpse ebanges with-
out pnll'iding any eOlllpen,mtion to classes, and
that t.11I' I'pl"IIHUlpnt ppace and advancempnt of thp
Count!',\" will not hp l'romotpd hy provisions which at
PI'er'y sff'}> ,pt class against class, and compel resort to
thp ('ourt" or to the Collector's agenc'y. The interpst
and in hlllrJ will still continue to be as
dil'idpc! hf>fore lll'twPt'n quarrplsorne partnpn, and
no rpal improH'mt'nt will take place. Our own pro-
IK>sfll is tllat, as far Ii>' possible, the entanglellH'nt of
primtf' l"platiolls should IlP simplifipd, an(l the
sions of ('onllict and sub-divided ownership should be
minimizf>d. We would confer full Proprietory rights
on the R'yots of wlintel-er degree who hold Rayati
lands, i.e .. non-KhaIllHr, but these full rights should
extt"nd only over a limitf'd portion of tllt" t"state so held,
and will hal-e to hf' pnrchased for a proper equivalent
in the shape of resiglling in the Landlords favour all
rights over the other portion not so reservpd. The
liabilities and rights of the Hyots and the Landlords
must he duly weighed one against the other, and on
the principle of a sliding scale, we would apportion the
land bptween the two classes, assigning one and the
larger part absolutely to the Ryot, another to the
IM"tndlord, and if a balalH'e is still left due, we would
provide compensation in money Rent Charges, by
which meani\, all conflict will cease, and both the Hyot
Itn_d Landlord wiJl"be made to feel increased interest
306 ESSAYS 0:"( l:"([)JAN ECO:,,(OMICS.
in their absolute properties. The more practical qUt'R-
tion relateR to the way III whit'h this liberation
of the land from its present entanglements can
be hrought about. Our own proposals are based
on the recorded experIence of si milar undertakin/.(s
which have been successfully carried out in other
countries. In tlH' first instance. we would encourage
tl1P redemption of rent a.nd other cha.rges paid by
the Ryot,; to the Zamindars, find Revenue-free and
Tenure-holders. Tlw present valne of the payments
made hy them to these classe,., come, to about
twenty-one Crol'E's. These twenty-one Crores paid
to the Zarnindars and Tenure-holders are. on an ave-
rage one-fifth of the gross value of tht' annual agricul-
tural wealth of which has been roughly esti-
mated by::Uajor Baring-now Lord Cromer-at ?ne
hundred Crort's. As thert' are a bout tt'IJ millons of
Ryots. this represents an an'rage production of
one hundred Ru)wes fi)!' each cultivating Ryot's family,
out of which he has to pay at present twenty Rupees
or ollt'-fifth Rilarp. in and taking the
yield per acre to b(' ten HnpeE's, it follows that each
Ryot cnltivatE's ahout ten and two Rllpeesan
acre ont of a produce worth tf,n per acre. In
the ease of the Occupancy Hyot, we would divide hih
Holding into three part" lila ke two of t1'eRf' partR over
to him in absolute ri""ht. and hand o\'er the third as
,.,
ahsolute Khamar land to the Landlord. In thf' case of
I'HrS:-;)A!'.' LAX!) LEG!'.'. & THE HE!'.'GAL TEN\",,"CY 1Hl\l.;
otllPr Hyots Wf' would divide the ,hnlf":ttJ<Jf
half. As this arrangement will not settle the account
of their lIIutual rights and the balance will
have to be made up hy money Rent Charges. The
Ryot, left in of his one half or one-third
Holding'. be recluired to pay hiS' old rent on the
reducf'd Holding for a period of thirty or fOl'ty years,
as to repay halance of the purchase money with
intf'rest. If the part if'S cannot be made to agree to
this sIO\\' method, the liovernment could easily render
them this hell' by admncing the money wherewith the
Hyots might he enablf'd to out their Land-
lords' elairns. Tbf' capitalized value of half of twenty-
one l'rorf's will hf' about two hundred Crores, and that
of one-third of twenty-onf' Crores will be one hundred
and forty ero!'f". The Government could safely float
any loan at four per eent., and payoff the Zamindars
for the loss of their rights over til(' reserved portions of
the Hyots' Holdings, and recoup themselves by levying
six pf'r cent. interest from the HyOtH fora term of
thirty-five yf'ars. Purchase on thf'se terms will be
compu18ory, and the Landlords will more easily be
reconciled to it than consent to see themseiYes deprived
of a valuahle property without any (,OlIlpensation, as the
l'resent Hill proposes to do. Thrifty Ryots might be
,allowed tile option of redemption at an earlier period
by the inducement of a conHiderable reduction in the
total capitalized value. This latter plan has been suc;"
:lOS ESSAYS 0"" 1:-.'IlIA:-.' ECO:-.'0\11 C".
ce""fully adophd in H\I"sia. in r""l'p(t of tliP I" .. rf" I"ho
receind one-tllird of tlt(ir Illaf'tpr\ lands in Frff-
hold right. Tit.. otllPr plan wlJ\lld FPt of tbp
mutual liahilities II !HI rights of t lip two
and accorrling as the halance ilwlint(\ in the Zaminclar/
fayour, an equiyalent allotment of land mad .. once for
all, or a Rpnt Charge created for a term of years with a
provi'sion for a Sinking Fund, would haw to he IIITang-
I'd. This WIIS the principal fE-atme of the PrusFilln plan
of Enfranchis.ement. and it lilts this
thllt no liability is thereby thrown
Government. Ewn under the RussiAn
liability of the Government is on ly nominal,
Ad \"lin tllg'(>
on tIll'
pllln, the
as it only
intervenes in placp of primte mon .. y-Ienrlprs hf'cause
its crerlit is exceptionally good, And it,; powers of l ... ry
are -proportionlltely more effectiw. In this WII)' I"P
could Achieve the libpration of the Ryots in Bpngal
in a generation or two without any violenee to
vested rights, and our plan would ahoye All train
and eclm'ate the people by a slow discipline of thrift
to retain their newly acyuired status. The present
proposals of the Hill simply confiscate the interests
of one class to benefit another, and ean only be
justified on SOcialistic or Communistic principles.
The elements of national prosperity are wanting
in a country principal resource is Agriculture,
and that agriculture is in the hands of a thriftless and
poverty-stricken Peasantry, who are weighted down
rnn''iIA:'i LA:'iD LEG:'i. & THE HE:'i(iAL TENANCY BILL. 309
with IWlny chargp". Imd ",hMp life and labours are
not ('hePH'!\ by thp (harm lind inspired by a
spnsp of propprty. ]f this COlllltry saclly wants a
I'rond and indpl,pnripnt Ypomanry as the backbonp of
its strpngth ami it no Ipss I'gually nepds
the Ipnriinganrl till' light of I'rol'Pl'tif'd men. A <'om-
plptp rlil'oree froll1 laml of thORP who ('l1ltimtp it
is a national pI'il, and no Ie" an pI'il JR it to find
onp dpad levpl of small Fal'lI1l'r.o; all ol'er the land.
High aJl(1 petty farming, with an 111'1'I'r ten thousand
of thp holrlprs of large landed p,;tates, and a vast
mass of peasant farmprs, this mixpd constitution
of rum I Socipt.y is npcessary to ,pcure the stabi-
lity and progTess of t.he Country. The Bill under
consideration robs Peter to henpfit. I)anl, and at the
same time, it creates an of interpst, where
entire union should pre\,aiL ami it clogs the land
with a I'ariety of interpsts and ownership, and
entanglps llIutual relations in such a mnnnpr as to
dril'e hoth parties constantly into Civil Courts. 'We
know onr snggestion is so far out of the lines within
whicll the discussion has hppn hitlwl'to conduetpd,
that it i8 not likely to attract favourable attention
on tl,p part of thp extrf>me advocates ,pither of tlw
RyOtR or thf> Zamindars. 0111' pprception, howp\,er,
of the nature of an ohstinate persistence in
a lnissez fai1'e policy is so keen and our disapprobation
of the revolutionary proposals now made is so radical,
310
that \\'1' hlln' 11 .... 1111'<1 it to . t'lIttpr tlli,
on thp /ipltl (If ,li"'\1""ion, 11111\ wllit to " .... if it
fall. on g/xxl ""il. A 011 tllP
plan arlmcat .. d by u" will "11('('I'""flllly Rt't'orlll'li,h
all thp toJl(\" tllllt tl,l' fio\"l'rnllll'nt 1111" in "i .. lI'.
and tht' Zamin(\ar" will nllt bf' III II worst' IJO"ition
,
than thp), IIfp now, Tllpy will g-tt full
rOT till' of tli .. ir figl,t" o\'f'r 1111.. portion of tll .. ir
aJl(1 tllpir dominion O,'PI' tl," otlipr half will
bp of Il l'haradl'r wl,iell ('0111<1 n .. lf>f hpr .. aftn \,..
qupstionPd. (Ill tht' othpf lllllld. if tl,p prp,.:f'nt Hill
l'assps into lilli', thp 011 tI, .. Lnnrllortl"s !'ower
in t1lP mattpr of and in th ..
Ip,'y of fpnt, in thp c1llim for illll'rol'pmpnt", linn
disturbllncp, will soon me('ppd in gmdnally low(>ring
till' statns of thp Zllrnindllf": to till 11",'1'1 of l>pmion
rpcpil'pr". :O;ut'h Il statp of will kppp II\, Rnd
all tlip .. Ipml'nt" of lind jm.t
thp riot" and in Eastprn HengRI hill'''
pa\,pd thp wily for till' prpspnt fnrth .. r
will suggp"t 1ll00'p dmsti,. and rf'lrogra<l ..
TenlPrlies in the futnrp, It is, ahove fill, important
to \,ut Hn pmI to thi" irritlltion, and tI,i" ('an onlr
bto donI' hy thp adoption of onp or otllPr of fhp altprnil-
ti,'e plan" of settJeJnf'nt which Wf' 1m\'!> "pntllrf>(i to
propose, Let each man'" land be Illuch hi" IIh".Jlntp
as his house or clothes, lind thing" will
down themsp]Vf>8 IIgrppably to thp intprpst" of all partip,
PIU'SSL\:,\ LA:,\D LE(iX. & THE RE!WAL TE:'\"\:'\CY BILL. 311
III India.
powerful it undoubtedly is, cannot command the
power to retraee its step;; in
the Country backwards a
such matters, and throw
h nndred years. This
attempt to rel'olutionize in a retrograde direction
is bound to fail, and will fail only to suggest a
further repetition of till' same unsuited remedies.
To sum Ul' the points in which our proposal pos-
undoubted adl'autag-es over the present Hill,-
(1) Both would effect a Redistribution of Land,
but wbile the Bill would make this allotment with-
out our proposals are based on the
grant of adequate eornpensation to the parties who
might he depril'ed of their existing rig'hts; (2) while
the 11resent Hill wonld perpetuate tlw existing eonHict,
and create fresh confusion and complication of in-
terests in Land, our proposal would simplify this pn-
tanglement, as far as may be possible; (3) while the
Hill would create an artificially defined class of
Tenants tempted on all occasions to throw
off their subjection, and a Landlord class hemmed in
on all sides by incon vPllient obligations, we would
ereate an entirely inde)JPndent Pt'asantry trained by
thrift to prize its independence, anrl at the same time
confer an absolute property in their on the
Zarnindars and (4) while the Bill
would dl'i ve both classes into Civil Court" and the
of Revenue and Settlement Officers at e\'ery
312
ESSAYS 0:'( INDIAN ECONO:\!lCS.
step, we would simply lock up the of the:;e
coerCl\'e Ageneies by taking away the usual induce-
ments for strife and dissension, and make Custom and
Contract the measure of' the obligations one
class to anotlwr, instead of It harassing and penal Law;
(5) while the Hill would create fresh Occupancies, and
destroy Kltamnr land, we wonld increase the latter, and
raise tlw former once for all. to their fnll status; (6)
while the Bill would in tllp Plld l'Ol'er the land with
one dead 11.'1'1'1 of Fluper Tpll<tllb. WI' would ensure thpir
more hopeful existence, (Hl'il'illg always to ai,tain a
higher standard of comfort, a long side of a rich
and Upper Class of great Territorial Lords.
One word more before we conclude. The pre:;ent
Bill makes no provision for the rights of the (Tovern-
ment Tenants in Khas 3Iahak There is no indication
that the Government is prepared to bind itself by the
restrictions it RO generously upon Zamindars
to receive les:, than one-fifth of the gross produce liS
rent, or to refrain from oustin!::' Tenants without re-
sort to the Courts, or from douhling the rent at once,
or to pay for or giye ten years' rent
as compensation for disturhan('p. The condition of
the Ryots in these Khas )[ahal, dol'S not compare
favourably with the Zamindars' RyotR in Eastern
Bengal. The Ryots' ad \'o('ate, in Bengal should
certainly not content themHelYes with partial Legisla.tion,
which makes it possible for (To,prnment to refrain from
I'HI'SI-'IA:,\ LA:,\1l LELi:,\, &; THE BEXUAL TEXA!'(CY HILL, 313
deilling towards it.self tI,e same strict measure of equity
wj,ich it proposes to deal to others, And H" we are on
this part of the we may well ask whether,
under the periodical A""e,.,.ments, the State Landlord
i ... prepared to concede as ib-elf the
measll,'es of rei,tridion and moderation which it is so
HnxiOlls tn provide fm' thp Tenantry of the Zamindars,
Hf're in t.his Presidellcy, Government doubles and
in m'tny c lSPS (jll'lJrnples, the Assessment at a
leap, the ha,4 tJ be pitid pnnctually on
pain of forfeiture of all interest in land, there is no
limit that the in all cases shall not exceed
one-fifth of the gross prodnce, and no payment is made
for improvements or disturbance when a Ryot is ousted
from his ancestral lamk In all these respects, the
Ret'enue Administration in other parts of Imlia must
J)P pllt on a more erjuitable footing before Government
('an with clean hand8 aRk the ZamindarR in Bengal to
the Proprietory Rights guaranteed to them
hy one hundred years' continnollR and on
the faith of which most of tll... 8ettl ... rl have
ehanged hands to such an extent, that the idea of
depriving the present rIlee of landlords of their advan-
tages, without compemation for tilE' thus thrust on
them, savonrs very lllu('.h of It Communistic and
day Raints' Revolution, than whicb, in It country circum-
as India is, nothing mn hp mOTP disIlHtrou8
and perilous alike to the people and to their Rulers,
XII.
THE LAW OF LAND SALE IN
BRITISH INDIA.
, t'"
'I'HE question of tl[(' Law of Land :-;alt' in British
India has been the xllhject of a standing con-
trover;;y for the last twenty-fiYE' ypars ana more, and
the new Act for the Relipf of tIl(' Deccan Agriculturist.,
has raist'Ai the suhject from onE' of speculation into a
matter-of-fact reality in it" relation to this Presidency.
Prior to this period, the tenaency of British Indian
Legislation and Administration had bt'en generally to
assimilate the Laws and Institutions of India with tlll
latest innovation;; in Europe. Usury Laws WE'r"
abolished in 1855, because :\11'. Bentham and otilE'l',
had denounced them in England, and thl' English
Legi,.;laturt' had removed those restrietions on tlil'
uni ,'efsal freH]om of ContractR. Local Ces;;es and
Octroi Dutie, wert' aholisher] not only in Hrith;h Iudin.
but also throughout the Xatiye States, becanss they
intt'rfered with the freedom of Trade. lnam Com-
miRsions were "et up, anel SO-CIIII l'rl Hetth'ment
operations were carried on
taxation on all classt's
with a vit'\\' to el]ulllisp
without distinction. It
" PUblished in l ~ i < n ,
TilE LAW OF LA:>n IN BIUTISH INDIA. 315
was a part of tbi" "y"tPIn tllat ipd Go\"ern-
ment to hbolish the old Ten\ll'e, to
tli .. Joint Liahility of thi' village, and
in plal'e the :O-;urwy Occupant's Tennre, and
whpn the fin;t .-';pttiemellts wen' introoucNI, much
('red it wa" taken for ('onferring on the Ryots the
most unrestriderl IJOWP\' of transferring their interests
in land. This tendplH'Y to illnomtion ;md the levelling
up of Oriental Institutions to tile re1luirements of tile
InO"t radical theorists in Europe was in its full swing
hl'fore the Mutini .. ", Hnd tlle Annexation Policy and
the Denial of Adoptions were only the Political phases
of this same spirit. The fearful blaze of that period
of troubles opened the eye" of the ruling Authorities
to the great llIistake tbat had heen committed, when
thp ComervatiH' traditiol1S of tIJp first. conljuests, the
policy assoeiated with the memories of Eiphinstone,
2'Iul1l'o, 2'Ialcolm, and )[etcalfe, was gi\'en np for
new-fangled WHyS of thought and l'emlutionary action,
recommended hy Illen like Bird amI Thomason in
tilt' ::oIorth-"Te"tern Pr<l\'inees, and in our Pre;;idency
by Goldsmirl, Hart, Co\\'per, and Willong'hby.
With till' rpversal of the Political )[axims which
had till then obtained sway in regard to Native StateK,
11 reaction for the timp, seen to in-
fluence what may be called the Home Administration
of the Empire. In l'onsequence of the law which
made land" hoth IIneestrai and acquired, freely
316
ESSAYS OX J:'>OIAX ECO:'>O:\IICS.
alipnahlp for thp d!'hb, of its own!'r, a gr!'at change
was slowly but steadily plaet' ill thf' status
Hnd position of thf' Propriptory Cla,"e". All 01'(>1'
rndia, lands \\'pre sold for arrears of Revenue hy
Revenue Officers, :\I1d for df'C'ff'ed Debts. hoth sf'('nrNI
and nnSPCUl"N\. hy thp ('il'il Courts, throul-!h thE>
coercive pro('p" of awl thi' was I"isihly
tpnding to thE' illll'''\"E>ri"llInpnt of t hI' olrl PropriE>tors
and transferring tlIP lands into thp hanels of strangers
and non-rpsirif'nts. who gf'nf'rally lwlongpd to tllf'
mercantile ami trading classes. anrl hought up thp
land for no othp!" attraction than its charaetf'r as a
paying inl'pstlllPllt. This change of possf'ssiou hall
f'xcited 80mI' attf'lltion PI"pn hf'fol"p the )[utinie:l
began, especially 111 t IlP orth-\Y f'stpm PrOl"inces,
hut at that timp thp GO\"PTnlnpnt of that Prol"iucE'
t'xpresspd its inability to rio anything morp than to
wHtch the natural and unTP,t!"idNI conrsp of thp frpp
transfer of property. tllp height of the
it was, howel"er, noticpd th']t in many
the proprietors had rp-pntprprl into possession,
and that the old ,!,pnantry IIMI with
them, and Rided wit,h them the new purcha-
sers. In August, 1858, this mattpr attractpd the
notice of the Conrt of Dirpetors. Tlwv that
the rapid transfer of lands from the hands of tilt' old
proprietors to thosp of with no local infiut'nf'P
was a sonrct' of weaknpss to the GovprnIn E'nt, lind
THE LAW OF LA,,[l SALE I" BRITISH l"mA. 3] 7
without sugg"esting illlllwdiate llleasurps of relief, thpy
rpcornmendpd thp to the attention of the
(fO\"prnrlleut of [ndia. The (To\'ernmpnt of India, in
forwarding the Hornp ])p;;patch to the UOI'ernment of
the Xorth\\estprn Pro,"iuces, suggested the advisa.
hility of restriding coerci\"e Sales of Land to mortgage
<It'erpps, and th' Sadar Court of the North-\\Testern
PI'OYincps wa_ al.,o in flll"OUr of a similar rpstriction.
:-';0 fllrtlwr 8tI'P" ltowpl"pr, appl:'al' to have bepu
takl'n at tltt> tilllP with rpfprellep to this suggestion.
Early in tltp next ypar. Lord Htanlpy (afterwards Lord
D!'rhy), sent out II })"'patch whieh may be said to be
till' ,tarting point of thi,; controvprsy rpgarding the
policy of p!'rmitting land to b" freely sold for all
speured and un'(>('ul'pd r\phts of tltp OWIJt>T hy coprcive"
process of the Cil"il Court". 01' of his own will and
elloice. After noticing that the fi'ppdolIl of transfer
harl llPen a SOlll'Cp of weaknpss to thp Ooyprnment,
inasmuch as the HPW purehasprs had no hold on the
'j'pnltntry 11'110 sided with the ousted proprietors, the
suggested that in of past transaetions
should, if possible, be made to bring about
COlli promises, and in regard to tilt> futurp, it was
rpcornmended that the powers of tbe Judges of the
lowpst Courts restricted to snits for mOlley
and movable l'ropprty, that no execution ag"aiJlst land
should be permitted for decreps lw low It certain
amount, and that lands should not be sold witho u
318
the sanction of the ])istriet Jml"'e. as had in fact
'"
he en the l'raetice in the ease in those Provinces
hef')re 183-1.
This Despateh was farwanled the GOI'el'lJlllent
of India to the Local Allthoritiei', who in due
.,licited till-' dews of th!'ir Chief Hf'l'enne Officer"
and, through the f'adar l'omt, of the Distriet .Judgps,
with ref'erelll'p tn the Cjllestions raised in it. A,;
might be expected. (,he Hel'pnue OIE"ers gm'e their
opinions in favour, rnnn or of Hestrietil'f' L!'gis-
lation, while the Jllcii{'iltl Officers for the most part
maintained the wiRdorn of masterly inactivity in this
matter. The reeorciNl hy' :\Ir. Reade, )[ ...
;\[uiT, and Mr. Strachey (sim'e :-;ir ,,'. Muir and Sir
.T. Strnchey), on one sid!' of tI,e question. Hnd by Sir
(1. Edmondstone, the tlwn Lielllenant-HoVf'rnor, and
'Ir. Pearson (since the Hon'hlt' Justice PeHrson), on
the other, may be said to exhanst all that can be
,;aid for and against the memmre of illlowing land to
he freely sold in execution of decrees. The mo;;t
noticeahle f!'atnre of thi, i'orrespondence IS, that
while the chief JudiciHI authority of the Province,
the Loeill Sadar Court, si(h'd with the view8 of the
Hevenup Officers to a gr!'at extent, tht' Chief Ex!'cutive
Officer, the Lieutenant-Gowrnor of the Prol'ince,
minuter! strongly ilgilin't all the proposal, made by the
Revenue Board, an(1 suggested only slight improvements:
in pToeeriure as a snfficient palliative for the disease.
THE LAW OF LAXn SALE IX HHITISH IXDIA. 319
We ('an ollly prp,pnt a short of thp vipws
llpki by the _el'pm] officpl"S who took part in this
discussion.
:\lr. :\IlIir '1IJ.:'gested that there shollld bp no rps-
triction on mllllltary mortgagp or ,.;alp, or on the
action of thp ('ollrt,' in ellforcing such contracts. Tn
t}w caR> of >'imp)p 1](> of opinion that the
l>I'r,on and Illmablp propNty of a tlphtor, and
hOlH'>S alld t01l'1I garctpns, might hI' attached and
"old, but not his lands. Tn the >xecutiOll of
dpl'rees on mortgagp bonds, it was sug-gested that the
('ollpctor should try to spcllrp satisfaction by trans-
fprring 'thp propprty for II (prm of years, on tbe
I"'lyment by the tmnsfpr>> of Ii sum equal to the
(Iecree, or hy making o\,pr the land to the mort-
gagep cr>ditor for a term of ypars to pay himsplf out
of its usufruct. and havp his claims discharged.
If neith>r of thpsp Illternatil'ps wer> possihh, the
land should hI' >,old, or thp debtor and his estate
... hollid pas>' through the Insolvency Court, which
shonld h> allow>d to cOllnt the usufruct of the land
for fift>>n ),>ari; among the assets of the estate. :Hr.
Heade, who was then Senior Member of the
Bel'enue Board, suggested that Sales might take
l'la{'> in >x>cution of even money decrees after all
att>mptR had fllil>d to paym>nt by the
movable property of the debtor, lind hy letting
hi, lands on farm for a period of but that
320 0:\ J:\ l>L\'X ECO:\OMICS.
sueh lIot Iw ordprf'c1 wit hont the sanc-
tion of HlP Dish"jet Jmlgp. Thp crNlitor ,hould Ill'
f'quirpd to pay tPll 1'pr epnt. I11'0n the valllP of tllP
decrees to reimhnn'e tht' (ioyprnmpnt for tlle tronhle
of realizing dpht". I'll r. Thornhill, COJllllliHsioner
of Allahabad, c1i"nppro\"ed of the sale proeess, and
suggested thllt tIll' 1)pst way to ensure a check WllS
to tax pxtrayagmlcp in Im:rriagp pxppnditurp. lVIr.
Cocks, of Jahalpnr, suggpsted in addi-
tion to tllP prollibition of by Ci,"il Proeess of
the Lower Courts, that no alienatioll hy a Proprietor
should bp helrl valid, whieh llad not till' conspnt of
his next two generation of lwin.;. :\lr. Pinknpy,
Commissionpl" of .Jhansi, thought that the transfer of
land from the old Propriptors to till' \)lPrcantile c1asoes
was not capa blp of bping rpllledied. :\Ir. "Williams,
Commissionpl" First Diyisioll, approved of the proposp<l
prohi1)itioll of transfpr,; of Land hy decrees of Courts
on the ground tlmt it would ('heck extravagance, and
in the meanwhilp, suggested that the Civil Courts
he directed to try first the eifpcb of temporary
attachment of the profits of Land hy way of
the Decree. Mr. Haryey, Commissioner of
Agra, suggested that under strict Hindu Law it was
only the usufruct that was liable to be sold in payment
of the debts of each Hereditary Holder in possession
and that no larger interest should be sold. Jlr.
Hatten, of Hohilkhand, was of opinion
TilE LAII UI" 1.,\;;1> ';.II.E I;; BHITI,;H I;;[)I.I. 3:!l
\10111(1 hI' 11 l'onfl;"ioll or PIT'lI' and and 01'P08-
I'd to the teael.ill'" uf Polirieal ECOlWIIl". If II ('hanO'/"
J e
II ('I'I; tu be madl;. I", wllnld only .. the pxernp-
lillll to helow thrpp Illl1ldred /{Il[lpei', lind in
,"its ahon' that amount t I.p pxpcntioll flgain"t Lana
,I,ould hI; in tl,,' hlllld" ,of' til!' European .Tndg'e, who
,I II mid nfpl' the adj Ih,tll,,'nt to the Collector. :\1r.
I illhhill", COfllUIISsiullPl' of l'!'oposf'd to extf'nd
tl,,' E'xpfllptioll to Sale, li)r IIl'rear,; of Hel'ellue along'
II itll tho:;e lIndp!, ])p('ree, of COlll't. In the first ea"E',
tl,p Sales ,1.ould hold goo(l li)r twenty years at the
,,".,,1. after whi"h Ihe property "honlr! return to the
(111"111"1'. In 1.1", ('11"1' of Sill .. " 11lIdpl' Decree;;, including
,illiple and IlIorl:,:'il:,:''' d"hls, (Ill I." tl,te lif .. illlpr .. :;t of
tl,p deblor sl.onld I", Il'iI"sferahle, If h .. alld hi"
Ilein' join. I lIP ali,'wllion I"tld g'oorl for two
lile". hut Iwyolld 11"lt pp .. io.1, it ,llOllld lIot he hind-
Illg'. EI'pn l'1'illlt" alit'nation" sl,onltl he I'oid heyollCl
til", period of two g'PIlt'ratioll'. .'lr. Cllrrie. Collector
of the necessity of the intro-
<llIelion of 11 Law of Entail to tllkp up the place of the
oh"olete of the Hinlln Law of
.Ioint Property a,; tllP only eftpcti\'!rellIedy. NIr. Mayne,
Collector of Handa, dlsapl'ro\'ed of the proposal regard-
ing Entail flS heing opposed to feeling, and
maintained that the necessity of borrowing was forced
322 ESSAYS O;\' emlA;\, F.CO;\'O!\lICS.
upon the hy the pressure of the Revenue 1l88es,-
ml'llt. HI' accordingly snggested that the Assess-
ment shoul(l Ill' He of opinion that the
Jlolitical cOllseqnencl''' of free trau,fer wen' exaggerated
and that there were henefits at ising from the infusion of
stranger blood. At the same time, he con"idered that
the "hange, as fllr as it had gone, had been sufficient, and
that, if posRible, the further destruction of the old pro-
should be prevented. Hnd while upholding
private contracts, 1,1' Rllggested that Decrees for simpl"
debts should he "atisfied by a temporary transfer' or
farm, and not hy the sale of land. Tlw ('olleetor of
Cawnpore, )1r. Sherer. WIl" of opinion tl'M the ,,"j]
complained of was due to the direet of the
Government with proprietors of small e,tate,. and that
no prohibition of Sale could remedy it. 'II'. Strachey,
Collector of Moradabad, in a very sngge,tive minub,',
nrged that the evils complained of. were owing to the
novel and rigid Revenue ::;ystem that had been intro-
duced. substituting imhyidual riQ'hts and liability, in
place of the old joint responsibility and the ahsence of
the power of Alienation. The ehange was not in all
eases from bad to worse. for Rtagnation would mean im-
poverished Proprietors, and the curse of
impotent for good, would he doubly hea,'Y in a country
which was almost entirely an agricultural one.
evil, in )Ir. Strachey's opinion could not lw remedied
by merely Legislative changes, or the reform of the
nn: LAW ,IF LA:'I)) "ALE I:" tll<lTlSH 323
PrO<'e<lure of ('ourts. The tTovernment must takE- upon
it"'lf ali the fuuctions of a wealthy Landlord. He, ac-
('Ordingly. admeated the plan of Go\'prnment ag'ricul-
tural Hanks on the model of the French Gj'edit Ponder.
far Lpgi,lati\'e relief could Ipgitimatt'ly be
extentied. he thought that the Go\'prnment had done
by enacting Sections 194. 243 AIHI 244 in the
lIpW of ('il'il Procedurp.
The :\orth-Wp,;tprn PrOl'inces (TOl'ernment. after
"I ieiting thp I'iew,; of its Hel'enue Offieers, referrpd the
'1lIPstion to the Sadar Conrt. who conslllted thp District
.Iutlges upon the Blatter. :\lr. P>ar,;on, Judge of the
:-;agar and :\arbada Tprritories, in an exh.w,;til'e minute,
both sides of the 'Iuestion, and gal'e his
ojJlIllOn a!.l"ainst the proposed restridioIH' upon
and the jJroposed ,ubstitutf', namely-tem-
porary transfer or farm of the I'rofib. :\1r. Wyn-
yard. ./tulgt> "I' Shajehanpore. suggested that Sal"s
in t'xeclltion of deereI" could not well hI' a holiRhpd,
as long as the (rOl'prnment retainp(l that I'roeess to
rl'cover it, arrt>ars of Hevenllt>. and that all that
could Iw <lonl' hy way of l'elllpdy was to take
stepR to Ht>Cllre t.Iw atteudance of both parties
when the snit was triprl, and to makP the District
sanction necessary in of sale for d"crees
exceeding three hundred Hupees. -'fr. Lpan, .Tudge
of exprpsspd his doubts about the validity
of the Political argument urged for a change of the
324
Law, aud lit' eollt'uITP!! ill all p'''t'ntial l'oillb wit\'
Mr. Pearsoll. ,\11'. \'allsittart. .Tudgt' of Hart'illy.
Illaintaimfi that tilt' .. t waH ['hip!"
owing to tilt' Ht'vPIIlH' with wl,iet. th .. ('iril
Courts had 110 ('om'PrII. yp(. a, l'olitil'lll t'xl'PfiiPIlcy
I'P'juired it. Itp woul!1 10tt' fur tht' ehangf'. lind
pxpmpt all HPI'PIllIP land" from liability to
allY Procpss of tlw ('ourt". :\[... I'low<lt'II . .I11dgp of
(J hazto'Pl'orp, also t hat tilt' rt'lIIt'dy for tltt'
pI'il complained of was to Iw ill a rf'fol'lll of
the Heyen UP Till' He\,eullP l"y,tt'lII hrokp
ul'tlu' Talukdaries. and I'iolated tl,t' prineil'lt' of tI ...
joint liability of villagp \ and 8llbstitutt'r1
individual ownership in it" placp lIndpr tllp Pnttedw'i
and H(tlkaballdi system. :\Ir. Hoss, J udgt' of Farl'a-
ka bad , urged that under a st'ttlpd and strong (j-OI'prn-
InPut, thp PI'il ('omplained of nnanlirlahle ullder
tilt' operatioll' of a Law of equal sllecp,,,ioll. Whilp,
thereforp. a ['omplete was impossiblp. hI' sng-,
gested, l'al! iati I't' mE'aSlll'PS. tlw necessity of register-
ing all bond aftpctillg' lane\. of increasing the POWE'J" of
pTe-emption, IIml exempting- lands frolll for debts
helow one hundred and lastly. hI" advisf'd that
a prE'liminary inquiry should preeedf' till" with a
yjew to aseertaill and clefiut' thp intert':<t >,old.
The ('ourt of thf' Xorth-We'tern I'rol'iJJ('"
expressed themselves in fal'our of compf'lling th .. ('1'1"-
ditor first. to exhaust tilt' Per,onal Propt'rty of tI,e
THE t.,\W OF LAX)) HLE l'i BIUTI"n IXIlJA. 32.3
,Jphtor, and tllpII of limitin'" of Land to decrpps

ill which tIll' IH'opprt)' to hI' ,;old had hppll (Iistinctly
Itypothpeatpd, and to ('a,e, of fraud 011 creditors.
They IVp),p '11. .. 0 in fa VOIII' of dpdaring tltp pxemption of
"lIld frolll Iiahility to , .. ale ill of dpcreps for
'Illall 1IIlIOllnts. and re'luiring the .. to secure
till' sauction of the J>i,trid Judge, hefort' proeeeding
til ,ell the laud, Thp Lieutenltllt-(}o\'el'llor of the
\'orth Wt',tPI"lJ Pro\'iue,,,, in reporting his vipw8 npon
t ill' whole e"r)'espoucieu('e. t'xIH'e'sed himself strongly
1111 tltp Iteroie ),plnedies, IIlld thonght that the
I'<JI'ision, of Spcti01l>'. l!!-l, 2-l3, amI 244 of Act YIIl
<II' 1 H;i9 In'rp ,U!fiCiPllt for the present, with II slight
alllpllOlIlpllt of ;-';petion 2!4, so as to dispensp with the
1I"(p"it.r .. I' nlldillg sn!fi('ient Hecmity, and he suggt's-
rpol that it \\'a, dpsimble to watch their effects for
"')/lIP .rplI),.-. all1 TO !>P /'o!ltent, till then with a direction
t" l'P'luin' tllnt, ill nil .. xpeutions of decree,; for money,
I
,ro('"'''' ,"udl ill tilP first. instance issue Ilo'ainsi the
,.,
IIIO\'ahll' I'l'OlwI'ty. <1,,,1 t.hat t.he interests to be sold
,llllllld iJp ('anfully <I',,"PI't.aineu by the Collector, so a.,;
fo "' ... enl' ... til til" 1'lIr(,/las ... 1' a carefnlly definer! title.
This Sllllllllfll',V of the views of thp R""'f'llU ... aIHI
./lIllicial ()!fief'n; in tit ... North-\\'eRtE'1'Jl 1'1'0I'illCP'" will
,111)\1' till' wid .. di,'prsity of opinion that I'r",\'ails on
th .. subject. HllIong per,.;ons in pH>r), way eOIlII'f'tent to
jlltlgP ahout the issues illl'olvpd in tlw Ili,;pnte. All
\'arif'tie,; and of opinion are I'epre,ented in it,
326 ESSAYS OX
from the extreme l'on,.ermtislIl which would abolish
entirely the of even voluntary anrl
make the Ryot a of t,overmnpnt or redyt
the system of Entail, to the extremely radical princi-
ples of a la,issez fCtij'e policy of doing nothing
way of interference hetween man and mall. A strong
consen"U8 of view,. appears, howel'er. to he in fal-om
of a middle course. which. while restricting the
enforced Sale of Land to decree,.. which hy their
express terms affected it. wonld uphold the power of
pri mte transfer by way of sale or mortgage. hut
would, even in cases where might be neee,,"ary
and proper. first try the effects of a temporary attach-
ment and farm of the profits. This liew. it will lw
seen, was first snggested hy Sir W. )[uir. and coin-
cides in all essential details with thflt whic'it hm.
received the sRnction of the Legislatnre in the Deceflll
Agriculturists' Helief Act.
To proceed, howeler, with the history of the Land
Sale control"f'r,.y. the Government of India appear,. to
have taken no further aetion in the matter. 011 the
conflicting liew:, of the X orth-Western
and to han' ('on tented ibelf with
Prol'inc'E's
watcliiu(>
,.,
thf" effects of tl,e ne\\' Codp of CiI'jl Procedure for
sOlne years a,. l'f"commendeu by the Lieutenant-Go-
vernor. It Il1l1,.t 1)(' remembered, howel'er, that the
rel-ulsion of f"pling caused by tlle )Iutinies sug-ge8ted
the introduction of Seetion8 194. 243, and 244 in titt'
TIfE LAII lW LA:\() ";.l.I.E 1:\ IlHJTlSf/ ISllU. 32i
t '",I", 1111<1 ti, .. , .. S .. dions [1111\- well h .. l'!'ekon!'d as
the first 1\(-kuowl!'tiglll"lIt of a ehangt- of policy on
th!' part of (i-on'rnllient in thi, connection, and a
rpl'ognitioll of ib obligation to resp!'d th!' national
spntim!'nt regaroing Anl'Pstral Land, and its duty to
l'l'eservp thp "leI Hereditary Proprietor" of the sanl{>
in their l'o""bi'ion. It was hopee! at the ti1J1f' tbat
hy making tllP dpereee! amollnt payablp by instal-
III"nts, awl 11.\' l'<'l'Initt,inl(' tpmporary attal'hmpnt" of
tit" lands pithpr thron,l('h a RecpivPI' appointed by tit ..
('onrts or t ItrOlJO'h the Collectol' of the Distriet. suffi-

eient timp Ilwl consideration would be sel'l1l'pd to help
ti,e involnd Propri"tor to rpdeem hi, land, and retain
I,i"
In its npwly 1lt'4nirpd 1'1'O\-ill(,p,;. ti,e (i-on'rnIllPnt of
llldia [JI'ol'perl"d a step further in the declaration of thi"
II"W Poliey. In the Pnnjab. Il Cirl'ular Order, IHwing
tllP efi'pd of Illw, was iS8ued IlS pari)' as Oetohpl'
I R.j8, directing that no hereditary or jointly acquir!'d
property in land should be sold in liquidation of a
"llIn decret'd in the Civil COlll'ts without the sanetioll
of the J udidlll Commis"ioner. In 1866, when tllP
('ode of Ch-il Procedure W,I" extended to the Punjah
Provinces, a I'rod,;o was ordered to Hedion 208
(which der,lare. all right, ill land, a, liable to attach-
lIIt'nt and Sale)-to the efi'eer" that no immovable
property should Ill' attacherl 01' solei without the
of the Commissioner of the Di\i,ion, and no
Hereditary of ,IointIY-Ill'(juil'ed Property in land should
he attHched or I-Iold without t III' of thp Chipf
Court:' I-limilar provisions lI'ere introduced by tllf'
(Tovernment of Jndia in its Proclamations, extendinli
the ('ode of ('i\'il Proee(lurp to the other .Non-Hegllla-
tion In the Cpntral ProYinces and in Oudh
it was added that no property in land shonlrl
11f' ,-01(1 in of a decree without the sa1]('-
tioll of the Jndicial COlillnissionpl', and no self-acquirpo
property in land should he soh! without the pre"ion,
})f'l'1lli"ion of the ni"isional COlllmissioner. In tllP
('hota :'\agplll' Distriet of tIll' Bengal Provine"'" nnrler
oJ'lIf'rs of tlie GOYernlllpllt of India as far hH('k
as 1833. Immo\'ahlp Property was not ,old ill
liquidation of debts. hilt unrlel' the onlf'r of the Poli-
tical Agent of tllP Prmilll'p tllP ... state of tlIP
dehtor was sequestrated, Iwil tIll' :Isspts werp appro-
priated to the payment of tllP creditor aftpr allowing
a ,mall llIaintpnan{'p to tl1P indehted Proprietor.
When tIl ... Code of ('iYil Proce<im ... was extpndea to
this PrO\'inee, theRp powpr,.; of tlip Commissioner or
Polit.ical Agent WE're rp';l'I'I'ed, And without
his ,;anction no ,HII' eould take )lIBcl', [n the Bl'rar
Districts, th" ,anction of the I>iyj,ional Commissi01H'r
and of the Resident rel'pedj,'ply. Wil" required beforp
anee,.;tral or land {'olllc! lw ,old. It wa,
oIlly in the so-clll'PlI Regulation of Beng'aL
Bombay, Macha, lind the ::\orth-\\'pst. that no legal
TilE LAW (W L.I:'I01l "'ALE 1:'10 I:\I>U, 329
j'P"trietion wa" 1'Ial""d upon tit" fre"dOIll of .. , In
all tlte other l'royine"', tit .. pow"r of allowing I:\ale
wa,: I .. it to the discretion of the ']lipf Hel'enllP and
.J ndieial Allthoritie", The neepssit.y of ,meh :;anction
aets as II ueterrent 1l]IOn who seldom,
if (,I'er, sllccE:'ed in making out a case snfficiently strong
to ,:atisfy the highE:'r AuthoritieR, As thE:' introuuetion
.,1' 194. 243, and 244 was the fir,.t in
T J 1(' way of "pcllri 11 g tltE:' rp,:trietion of cOlllplete frepdolll
.,1' tmllsfi>r ill land, thi" rp'IlIj,.itioll of "Ilperior
tion mjght \\'1'11 he reg'/lrded II' tIll' ",,<'ond
,f"p takell hy tllP (;,o,"P1'l1Il1ellt witll a I'iew to protE'ct
th" old Propriptory 1'1'0111 hping depril'E'd of
t Iwir IlIl1ds hy thE' "lIjJprioJ' I'lltpJ'pri,:" awl intE'lligenl'e
of t he
In ('onI'S" of tilllP. it 11'11:', ),OWP\('1', di"'o\'ered that
the cheeks song'ht to 1)(> illl]'os"d ill hoth the ways
ah(H'e melltiOlwrl lwol'pr! eOl1lpnratil'ely ilWfi'f'diI'P in
opf>ration, lWei tllis Ipd to what !lilly wf'll he callf'd
thp nf'xt plmsp of tlli, LllIld Tit I'
"uhject was first hroa.,)'Pd by t.ile .Jlldg'E" of tilP Cbipf
('ollrt ill tllP Punjab, wh" l'Ollll'laillpd tliltt ti,l' disl'l'E'-
tion I'psterl III thPIII hy law I'P<)uirE'd ,01llP definite
mIl''' to guide it ill a "llil'it of uniformity throughout
th" and thp}, "sk,,(\ for II legi,;latil'e mea."Ul'e
wld .. h would d"fine Illor" parti,'ularly the l'in'IlII1Hblll('eH
ill wl,i .. h tile Ranction "hOIlI<l bf> g'i\"E'lJ or refused,
jllllepPIJ(Jently of thp '1IlP4ion, wl,ptl,f'l' tllp other
330
ESSA O!'.' I ..... D( A..... ECO ..... O'[(C,;.
of the land-owning' c1asse' were sufficient 01"
not, whieh was the only point inquired into 111
practice. n"ft>renet> reol'ent>d tht' larger question
of the dt>sirahility of sneh restrictioll' III'0n the freedon.
of Sale. :\lr. .r Bonlonis PXllI'pssed himsplf
strongly in f;\\'onr of absolutely I"pfll"ing' pennissioll to
the Sale of Land in a Zamindari or Khayaehari Yiliage.
in respect of money debts. un Ie"" the land wm'
mortgaged to tht> decree hohlpl'. .Justice Simpson
went further. and desired that tilen" should he no ex-
ception even in cases of hond,. The lJiyisional
Oflieers who we]'p eOJl8ultpd on t lie point, reported
their "iew:, with the same di I'f'r"it), wllieh has heen
already noticed in respt>d of tht> \'orth-\Yest PrO\'inct>s.
The Commissioner of Vt>lhi W1'" of opinion thnt the
Sale of Land shoukl he l'rohihitprl in all casps exeept
under dt>crees for arrears of Ht>I'f'Il!lt>. in which ('Ilsei',
as the Government claimpd the right to onst OW11<'r,
for such arrears, thprt> eonld bE' 110 hardship ill st>lling
the land at tllP instaIH't> of tlit' [>l'il'att' suitor. TIff'
Commissioner was not inelined to llW ke any pXl'Pption
in fal'our of mortgag'p. Tht> Depllt)' Commissioner of
the same Division expressed himst>lf in favour of
reserving the mortgagpt>'s right, and l\'Ould on Iy extend
the prohibition to sales for money delTet>s. The Deputy
Commissioner of Hoorgaon was inclined to object to
the restriction prop08(>d. hut would allow ont> ypar of
grace to the inmhed dpbtor to stan' off tIff' I"ale.
THE l.AW (W LAX" 11Il1TI>'H 331
The Deputy Conllni"'ioIlel' of KHrnal would di"I,pm'e
with all restrictions. as also with the of
tion. and was of opinion tIl/it thp of
I'ections 243 and 244 were quite suffieient
in al! easps. The Commissioner of HiRsar wa" also
inelined to take an e'lually fa vourahle I-iew of thf'"
Zamindar's position, Hnd was contt'nt to wateh tlw
effeet of the provisions of i';ectiom 243 and 244. He
was. howel-er, opl'o,ed to the policy of allowillg Forced
in cases of deefep" for arrears of Rel-el1llP. aurl
for money borrowt'ri for improvPlIleuts. The l'ulll-
missioner of Jalllllldar. 011 the other hand. woult!
prohibit all of Hereditary aud jointly aC'luirl'd
land under all cireuIIIstallees. The COllllllis_,ioIlP1' of
Amritsar thought that :\11'. HOllloui,,', prol'o'HI tn
forhid :-\ales in respect of money deerel'''. aud to allow
them in cllse of m01'tgag-p (\pbb,. would simply I'1'OI-P
futile, and lead only to all inCl't'H:<p of Illortgagf'"
transactions. The COUlmissiollPr of Lahon' IIH' III
favollr of the total prohibition of SHip limier all
circulllstances_ :\lr. {iriffin. Deputy ('orrllni_.,ioIlPr of
Lahore, would restrict thf> prohihition to Allet',tral
Property only, leaving jointly at-y'uired prol'prt)- tv
take care of itself. The COlllmissioner of Hawal-Pilldi
was in favour of Mr. proposal. The ('OlJl-
missioner of Derajat was opposed to I'robihitory
Legislation, and thought that the restrietiolli' undel-
Sections 243 and 244 wt're sufficient. Mr. Hrandereth,
anTangPIlH'nt, WPl'P eliipHy for tli!' in-
(jphtpdnp,., .. of tllP Za1l\inrlar .. ,. and tl,at as Ion'"
"
.. llOllI,] not
a l'rang!'llwllt, ('onti n Ilpd.
hI' liahlp to '<lpnin .",,,1,,
allt'p,tral lands
on
,J(' C Ollll t
of
'\Ir. Harnp,:.
ofli"iating (Olll1l1i, .. ,If .\Iultlln. tllt.llg'ht that th!'r!'
\\'11" lit) llP,d of alllpmling tlip 1.1111'. and tliat tllP
j"'p"ellt re"tridinll" ,,"prp sufli,i ... nt.
'I'l,,,, Finall('inl ('t)lIll1lissionpr of thp Pllnjab . .\II'. P.
:-;. ,\I,I,il. I'PI",)'ting Iii, own "ip"",, u]um ti,l' I'pfprpnep.
ul'!l:pd that th (>,1I\5;]h h,\I] pass"d through it, :'tagp of
.... ,"ltl llati 1'1 I tp]'('(1 111'011 1'1 go J'() w< manhood,
and tl,at tllP 1 .... 111,) ... II'P)'I' "'l'owirJO' III intplli''<'w'p and
,.... ,.... ,...
,\'paltl,; I.p \1",,, "f opinion. tl,pl'pforp. that it was not
all(] that tllP ,)f land "I,onld ('ontillll(' to pxist
for all tipht, for 1I'I,i,'" 110 sppf'ial ,,eUl'ity Il'as 1'1'0-
l'id",1. hut that it "Iltmld llot hI' "old Il1 pxP('ution
till all othp)' arrang'E'lllt'nb to I"'\' t],p r1pt'l'PP within a
I'pa"JlIahlp pp)'in,] of ahout fiftp"n Y"ar, ],ml failpll, Hp,
tllat fliP L'I\l' ,;,;)undd
1'''''');Iin 111lel,,,ng"" pX'PI't. that tllP l'P(jllisit.ion ahout
adp'I"atp "p('mity i,l :-\pdion :!-!-! ,hoilld he donp away
with. Till' Lientpll;lnt-(r()"pl'\lo\' ofthp Pnnjah, ],OW-'
<-,,'PI', in l'pl'orting 1l1"Hl tIl<' wholp "ol'l'Psponden('E' his
own "iPII':'. <'xPI'P"'''.! ,trong'ly in fa\'our of an
;lh,;o]utf' [lmhibitioll tlf thp :-\"If' of all hf'l'f'r]it.ary and
THE 1,.\\\' 01' 1..\:\1' 1:\ 1:\1'1.1.
jointly H(''lllil'("d lall<l, 111 "x("(,lltion of and
"ng'ge"t("d rl'at the tt'1'I11 f(ll' tf'llll'Ol'aI'Y Alienation nIHif'r
St'l'tion 2.t-1 ,hulIld IIPI'pr t'xeeed twenty years. Th ..
.flldgp" of tl", ('llit' ('ourt wt'l'e re<Jl1Psted accordingly.
to "lIhmit a dl'1lft uf tht' lll'opospd amending Law.
TllPSP .f IIdgt's. howt'I'pr. ,iiffhpd Illllong
Whilf' 'fr . ./ustil'f' HOlllolli, 'Ir. Justice Sim!,s()l1
Wt'I't' ill fin'our of fUl'tllpr pXI'l'f'BS I'l'ollibitory Ipgisla-
tioll. 'II'. WIlB strongly disinelillf'd to
IIIt).\'e ill tlie mntter. 1111(1 took his stllnd upon till'
Finant'ial Commissionf'l." di.'spnt. and thp He!,))rt IIIHflp
h.I- the High ('om't of tiJf' :\orth-Wpst Proyimf'''. ill
l't'oard t.o thf' ;;atisfllctorY wOJkin
o
of Sedions 24:3 Hnrl
.
:l-1-1 ;11 f'/'01';11('t'" '" I'Hlli"til'p IlIpaSIlI't'I'. In
,ollst'qn .. nl't' of tiJi>, l'ollflid. no fllrtbt'r mtion WIl'
takt'n in tliis eonn .. dioll. Tlds l'losp(\ what lIIay he
('a I It'd th .. S .. ('ond stllge of this Land Contl'olprsy.
The Third stagf' of this Contl'Ol'ersy beg-all ill 18iO
witl, II rpfpJ' .. nC'P from thp (:ion-'rnJnent of Tliliia to all
the Snbordillf.te rf'questing all
sion of tllPir "it'ws, in regard to the SlIl'('P'" II'lli"h liar!
atteudt'd the working of i'eetinns 24a and 2-1-1. "illl'p
tht' nt'w Co(lp becamp Law. Tht'st' I-ipctinll-_ it will
Pllsil), spen, wt'rt' in tlip first instanl'e ... ,I ... tI til{'
land of the !'ortllPrn and Eastel'll portio)), nl'
Illdia, ",h .. I''' individual Zamindars, 11.- ill Hpll.!.:"!.
Hehar, and Bpnllres, or Zamindaris hpld by "illllgt'
('ommunities, as in the North-\\Test Provinces ami tllf'
Punjah. Wf're :mffieiently largf' in f'xtent to allow a
Pro"pf'l't of thf'ir bt>ing profitahly rnanagt'd by mf'ans
of Hf'cei and ('oJleetor's agents uuder Attachment.
Thi" "tate of thing,; (lid not III the Ryotwari
Diiltrictil of HomhllY and :'Iladrail, whf're tlw systE'11I
-ohtain,; of ,;mall holding,; and indh'idllal re8pon,;ihility,
and in thf'ir ca,;f' it was to hI" expectro that til.. SP('-
tions would prO\'f' inopf'rati\'e and ohsolt't .. , Tlw
Rt'l'ort,; of the two (Jovernments and of tIl(' .J ndi('ial
)ffi('er:< ,;uhordinatf' to thf'nJ ('onfil'llwd thiil anticipa-
tion. Thf' 'Iadras Anthoritif's rf'pOlted that ::;f'ctiOll';
2-H had never heen f'xtf'nded to their Provinl"f';;. all,}
that Seetion 2.1,3 also. wail not mueh rf'sorted to. Thf'
BO/llbay Authorities al,;o made a "imilar report. 111
the of the Punjab. Oudh. the
('f'ntral Provinl"t's. aud the Herar,;. the Seetions weI'/'
inoperative on another account. These provision" p1"e-
ilul'po"ed a (livision of authority hf'tween the Judicial
awl Rel .. ll11e Sprvices. In tIlesf' Provinces, howf'wr,
hoth th .. flllll,tions Wf're combined in onf' and the
"allie (If/ieial. and while the ('heck of superior sa'nctioll
wa,; 111 o}Jeration, Rection 244 was found to h"
u\lworka hI" in its l'ractieal application. Tn th/'
Xorth-"'",t Provinces and Bengal also, Seetioll
24.1, wa,; proved to have been either not workPtl
at all, or to have been abusf'd. As regards Seetioll
2.1,3, howev"r, the Authorities in both the Provinep,;
rAported that it IU'I!I secured on the whole beneficial
TliE LAW (IF LAXIl "ALE IX BIOTI,,;H I'iDIA. 33;)
n',;lIlt:<, hy way of lIIitio'atillo' III a
:-t
1,t'l'c"lItagt' of ca""s the t'xtrf'lIle ,;e\'erity of the Law
implied in til!' final rf'sort to thf' :-luI .. ; yet,
('I'f'1I III District,; it wa, ohserl'ed that the
worked satisfaetorily in t h" ('ase of
t ]UIII in larg"
It was in the ('ours" of inljuiry into the working'
of Spctiolls 243 and 244 that till' A uthoriti", of tbf'
('"ntral Provinef'S Yf'ntnrf'd on their own 8ecount to re-
o]lf'n the Land Sal" l'ontroversy, ami thf' views of l'o]o-
lit'} Keatingt', Chif'f Commissioner, ::\1r. P. S. l\If'iviIJ,
.IIHlieial Commissionf'r, )lr. (now Sir Charles) Bernard,
('omlllissiont'r of NagI'llI', and i\Ir. Brooks And 'Mr.
:\ieholls, Deputy Commissioners, Wf're elicited upon the
g'eneral meritH of tht' Policy of restricting thf' Freedom
of Salps in pXf'eution of In view of the fact,
that the Settlpmcnt had been I'Pcently introduced in
t "psp Provincf's. a nd that propprt.y in land had been a
IJPW erpation of the Settipment, J'Ir. Mel viii saw reason
to ('hange the views lIP had exprpssed as Financial
('ommissionpr of the Punjab, and urged thl' necessity of
a Rpstrietive )leasurp hy which lands would be ex-
"lIIl'tpd from SaIl' for dpbts contractpd prior to the
Sl'ttlelIJent. He. further, proposer! that after due noti-
fication durinO' whit-hall debts contracted sincetlipsettle-
.-,
Inpnt might \It' cleared off, all Sales of Land in f'xecution
of decrees should be prohibited without any distinction
of ancestral or sP!f-aequired lands. Colonel Keatinge,
336
tltt' ('hief ('Olllllli""iuu .. 1'. W;" lIot 1"'''1'''1' .. 11 10 ;'0 f.,r
11" '\Ir . .\1t'IIill. Ht' would th .. "x""'l'tillll to
estatl's yieldillg Illor .. Ilmll llorp .. IluJ1drt'd Hul'f't'>' I"
allllual rE-nta!. All mlHllel' f'"Iatt's lw It'ft lu I ...
!il'alt witlt under tht' LIlW wllil"ll "ane-
tion bl'fore :-;ale. Tile two :O;y"tf'lJI>' of FrHoolll nnd
RE'strietion of :0;1111' wuul(\. he tllOllgllt. bt' thu,. workin:.!
,.ide by sidt'o 111111 "NYf' to edu("IItt' tht' pf'oplt' out of
tltl'ir tutl'lagl'. Tilt' Chipf COlJlllli""ioner al,.o dififorf'd
from the Judicial COlllllli,."iOlwr on ullotht'1' poillt. lip
proposed to mll ke a eli,,1 i Ill"tioll Iwt \\"t'en A 1Il"f'"tm 1 alld
:O;elf-Acquired Lands. and to rt'gard 1\11 land,., bowsof'\"I'r
;I("ljuired, HS am'estral after fifty po"session or t"o
of hpir8, Hnd to t'XplIIl't only the ATle .. "lral
Lands dl'TInp(\ from :-In I... III tilP ('llse of larg'e 1111-
(,E'"tral pl'esened from "alp. Ihe Chit'f COIII-
proposp([ thHt the deht" of thp ownt'r" "Itonld
be paid off hyan atta('hlllt'ut of tlleil' profits. or hy
handing tltelll 0\t'1' to tltt' creditors for II tfrnl of twellty-
fhp yplll'S at tin' 1lI0st, to be in tIll' end re,tol'l'li bllek
to tl1(' 011"11<"1" frt'p of all 1"Iailm;. In these sel'erllhnl)'
thp ineyitahlp ebllnge would. be be
l'<"tal'ded to ayoid all politieal incoul't'nience aurl any
slHiden :-Io("inl Hplolution. (If the minor allthoritips
eonsulted. til!' Pl'uty ('oillmissioners of Jabalpnr,
Clrindwarn. Xilllar. and Narhada Dilision. wt'rt' of opini-
on tl.llt no ehllllge 1Il thp existing Law InlS
callf'd for. :'Ill'. Hernard. Commissioner of Nag-pur,
THE LAW OF LA:'i1l SALE l:'i BBITJSH l:'i III A. 337
howeypr, proposed to 1'Xf'lIIl't all land",. wlietllf'!' an-
('Pstral or aC(luirl'd. frOTIl ('olnl'lll"ory Salp hy I'rof'f'ss
of t'iyil Courts. :\11'. Brooh. till' Commissioll"r. Hnd
:\Ir. Nicholl". As"isstant COlllllli""ionf'r. Sf>oni. were in-
clined t.. IlUlkf' distinetion IlPtwl'ell anep",tnd and
Self-Aclinired property, and whilf> expmptin!,! till' ont'
frolIl Salf', when there WI"1'f' Ileirs Ji"ing and 'nhject-
iug it. in"tead, to ternpont1',v alienlltions, tlIP} did not
think any protl'dion ",hould hp extended, to the other,
wltl'ther it was joint or rlil'ided, and tIlt',)' would
extend the salnP lal\ to )[;tlIOIIledllns a:< ",E'II as
Hindu>,.
Herf', tlli, Fonrth stag'" of the Controvesry ended
for th" pre",ent withont leading to any practical re-
HIlt. '0 far as tile ('entral Prol'in('ps were concerned.
III 18i2. Sir William Muir hl'('amp Lipnt.pnant,-Gow'r-
nor of thp :'\ortll-\\'p,.t Pro,illl'p,. alld in l'onnection
with the IlI'lI Bent allil HpIPlIllP HilL,. I'P-OPPlled tilt'
wltole dist'u"ioll. Thl' [lollonrahlp )Il'. .r. D. Inglis,
}\fr. C. A. Elliott. anti 'II'. Ht'>l<\p Wrott' .. ,trongly in
favour of Restrietil'p l,pg-islatillll. 'fr. Inglis suggested
that, after a ('f'rtain tilllP. l'f'n;onal Property alone
held liahlp for lllN'enrl'r! dphts, as also
for of RI'I'I'11I11', that AI1C'""t,nri Propprty should
he exelllphr! from :-;al ... on a'('Olint. of nnregistered
mortgage debts; and that cIecl'!:'ps fonnded on regis-
tered mortO'age should h!' satisfied liS far as
"
possibll', by a tl'mporary transfer of thl' property,
338 ESSAYS 0:-1 J:-1D1AN ECO:o;mIlCS.
which should be only sold whpn au arrangl'-
ment was Impossiblp. -'[r. ]{f'acle waH of opinion that
mortgage transactions should be r.-spectpd, and that
in regard to the past, simplp d.-hts also had a claim
to be satisfied out of land. Hp, thprpforf'. proposed
that a term of two years should be fixf'd for tltp
realization of all previous un"t"cllrf'd debts. and that,
after that term, simple dpbt>, "hollld he ,)1l1y rt"alized
from the perwn and out of tht" momhlp property
of the debtor. In rpgard to Illotgage d(,hts. he pro-
posef'd that there shol11<l 11<' 110 intt"r/,prpnce whell tll"
property mortgaged was Splf-:\('qllirf'd. "'herf' it wa,;
Ancestral, the claim ,llOlllrl he paid off hy a farm or
attachment of profits for a tprm not f'xcepding' thirty
years. -'Ir. Elliott urged that thp Zamindar
be regarded as a person holding land hunlNled with
a public duty, and that while all claims in of
old debts should be rt"spected, it should he decland
for the future that thE' Civil Courts would uot lend
their help to realize new debts by the Sale of tl1E'
Land 01' by any process se\'erer than a thirty years'
farm, the Zamindar holding- during- the farm as a
privileged tenant.
In the meanwhile, fiir William Muir had learnt>d
to moderate his old extrpme views, and he content-
ed himsPlf with tllP proposal that should be
exempted from sale for unsecured debts, that there
should be in every District a Court for the relief of
TilE LAW OF LA:>OD ;;AU: l:'i BBITlSH IliI>lA, 339
"ll('llmllPred P8tate" like the Court of WaJ'ffs, and
II,at 'Seer' Lands should he inalipnahle beyond the life-
t inlP of the holder. These \iews were reff'rred to
tllP Judges of thf' High ('omt. Allahabad. two of
II hOlIll. 'I I". J n4iC'e TUrllf'r a nd 'II"..T usticp Pparson
,trongly cOlldplIlnf'() rptrograde lIIPaSures, while the
third .Judge. :\If . lusti ... e goyf' a very doubtful
"nl'l'oft. Sir "'iIIialll 'luir aftf'rwards tonf'd down his
proposals still furtl'f'I. and contented himself with
)"f'(ollllnending that t llP execution work in the case
of Land Sales shoulll IlP transferred to the Coll!'ctors,
who, if ther found the .Lands hopelessly inYoiYed,
should l'roceetl with the Sale. If there was a hope
of rf's("uing the estate by good management within
tWf'nty-fin> years, the Collector should assum!' such
managemt'nt. E,entnally, Sir William 'lnir with-
<lr!'w all his ('hief proposals, so far as the Xorth-
"'est Pro,in('es were concerned, 011 the ground that
it was now too lat.t' to thil.k of prohibiting the
Salps of Land for unse(,ured rlphts, and expressed
himself satisfieu that a bettf'r expcution of the powerR
conferred under Sections 243, and 244, or an enlarge-
ment of th!'se powers, was all that was required under
the The :effect of this unconditional
,;urrender on the part of the Lif'utenant-ffoYernor
was that in the Provinces Hent and
Revenue Ads of 1873, the [only new provision that
was inserted was in Section 7, relating to ex-Proprei-
340 ESSAYS
tory by which Prol'rit'tors who IOHt or parted
with theirs Lands were recogniO'ed to haye tLe ,tatlli'
of PriYilt'g'f'(1 Tcnanb in ... )' Land, holding at a relit
of four annas in the Rupe.. Ie',.; tlilin tlmt paid by
Tenants-at-"'ill, and this relit ('ollld not lIP enhaueed
except for reason, laid down in the LalL
This was the only outcome )It the tilllt'. so far H>'
the :\orth-"'est Provinces were concerned, of all
this lengthy controversy. Subsequently, li, suggE'"ted
by Sir William ;\luir, in amending the Code of t'ilil
Procedure, the Legislature took C)lf'" to enlarge tliP
Collector', powel's, and to by down Unles of
Procedure for his guidance, in tit .. mlit.ter of the
execution of Decrees against Land. th ... ab,elH'P of
which rules was so llllH'h (.olIll'lailH->rl of hy the
various l"ubordinate CTovernIllent.,.; wlto were consulted
about the working of tlw :!-!:3 and 244 of
Act VIII of 1859. In Oudh, Ilo\lel't'J'. a Relief Ad
in favour of the TalllkdaJ's was passed in 18iD. hy
which special provision was made ns to the way in
which l{eyenlle Officers we!'f' to assume the manage-
ment of enellmbered estates. and to arrangp for
the liquidation of the estates. The Broach TRlllkdar',
Act, passed in the next year, was modelled Oil tlw
same principles, and later 011. we haye llad sPI('rni
Acts in the same spirit for tltf' benefit of partieular
e1asses, notahly the ZRrriindars of Sind alld ('hobi-
Nagpur. Before the Deccan Agriculturist,: Relief
THE 1.,111' OF I.AXI> IX BHITISH RmIA. 341
Aet pa;;"f'd. the Acts nHmf'd ahove were the only
outCOlllf' of t1,is long di,,;clIssion.
The Lanel Controversy, howHer, did not end
with tilt' enachnf'nt of thesf' measurl'''. It was rE"-
opened in t lIP Cf'ntrn I Provincf's in 18 i -1 under the
('hief JIr. ("inN' John) :\lorris
when tlw sllhjf'<'t \l'IlS startPd in eonnf'ction with a
llf'W Helenne and Tl'mon('y Bill for thosf' Province;;.
The TPcorcll'd hy Jfr. :\Ioni". :Ur. Grant
and }Ir. ('nrpentpr. ('ommissionf'rs of Jahalpnr
:\Ir. JOIlP". ('ommi""iollf'J' of and JIr. Low,
('omlllis"iont'f of tl,P X;]]'hadn Uil'ision, go over thf'
\\'hnll' !-!:I'ollnd of tl,i" Blost control'ersinl subject. and
hi' said in SOl;'" c\p!-!:ree to compll'tf' the Iitf'ra-
j lIn' of til(' HI,,,tridi,,, Sehool of Thiukf'rs nnd f'tatf'S-
111(>11. .h tllP (}OI'l'r11I1WlIt of India wns not prel'arf'd
to prohihit ,,11 illlolnntal'," t.ransff'r of Inmlf'r1l'l'operties,
t hI' (li"',,,,,io11 at tlii" tillle was confinf'd ehif'fly to thf'
<!PI'isin!-!: of Jllf'flns hy which the f'l'ils of a too rapid
trnnsfer he ohl'intf'<l. JIr. Grant, for instancE',
propc,"ed tllflt. thf' hE'Rt way to protE'('t thE' Hyots' inb-
I'e"ts, and (If'tf'r Bania purchasers from in\'esting thf'ir
"pare ea,l, in land, was to hold tll<tt no ahsolnt.f' proprie-
tory titl" to land could be recognizf'rl in India, find to
enforce upon the pnrchasers thf' full responsihilities of
the holclf'fs of land by placing a ellf'ek upon thf' choice
of manager;;, and in the last resort by eancelling the
:-\ettlement., if necessary, and pensioning off the
342 " ESSAYS ON ECONmIlCS.
dispossessed holder by a part payment of tbE' JalTllTllI.
These drastic alone could, in his OPllllOlI,
check the evil; all the other measure, only touchet]
thE' surface symptoms of the in the body Politic-.
The necessity of "anction, for enforced in the
No-Regulation Proyinees, had become, in the course of
time, impotent of effp(t. :\Ir. Jones also proceeded on
the same track, wI,en lw lain down as onE' of his postu-
lates that the nwre exemption of lands from fialE' for
money dE'hb, would hE' an insnffieiE'nt renwdy. HE',
howe\"er, thought that :\[ r. (Trant's RchE'me II"onld effed
too swepping a ehangp <Illrl it wonld hI' illlpossihle to
work it. The land lIIi:;ht be protected, hut the pro-
duce of it from year to ypar would be sequpstrated. Hp,
accordingly, proposed his own Schemp whieh wouluallow
private tran,a("tions of :-Ia!f', but put a stop to inl"Ollln-
tary transfpr hy Ci\"il Process, except in the ('asp of
debts expressly ;;pc-urNI on the land, and \Iith a view to
secure a ('heck upon extravagant loan;;, he would re-
4uire that all loa1ls, for which ancestral l,roperty
to bE' mortgag'E'd, shoulct be contract po only 1Inopr tin'
Collector's sllpefl"ision and he hE'ld to Iw mir]
and of no obligatory force without S111')' t'onsE'nt. Furthp]"
lw would Ipa\'E' part.ies to exprcise tlwir rights freely. in
respect of self-acquired land, PX('ppt t bat he would pn-
courage Family Entails and S .. ttif"1I1f"nts. In fPspeet
of past transactions, hE' would constitutE' each Deputy
Commissioner's Court into 1m Em'um bured EstateI'
TilE LA"" m' LAND SALE IN lllUTISH INDIA. 343
Court, and help the speedy release of estates by loans
from Government. :'1-11'. Grant thought that :\11' . Jones's
Seheme about investing Colledors with the power of
eertifying good and legitimate loans would be found
impossible to work, though he thought better of the
Encumbered Estates Scheme. l\Ir. Low thought that
the old Proprietors, were ruined not by the Banias so
much as by the excessive temptations to borrowing placed
in their way by the Settlement. He agreed with :\11'.
Grant in thinking that the best way to reduce theRe
temptations was to enforce the responsibilities of proprie-
tory possession. After this was done, the next step was
to limit the power of alienating Ancestral Land to one
quarter of the estate at the owner',; pleasure,
lind to declare the remaining three-quarters illalien-
able. The only form of alienation that Mr. 1,011'
would permit under his Scheme was a lease for ten
years only. Involuntary alienation of ancestral estate
by Civil Process would only be allowed in cases when
the original bond Ilad heen certified by the Collector
as having been passed for sufficient consideration, and
the property chargl'd did not exceed ohe-fonrth of the
owner's )fr. Carpenter, Commissioner
of the Jabalpur Division, contented himself with a
more modl'st and certaiuly less inmll'ed Scheme of
Reform. He thought that the e,"il would be bE'st
checked by 111'011 the creditor the nect'ssity
of filing a written of his account with his
344 ESSA YS ON INIllAN ECONOMIC8 .
debtors in the Registrar's Office, and he would also
have a register of all propertieR, how far they
werp encmnberpd or free. He disapproved of all strong
remedies, hut, if fnrtlwr Legislation was
he expressed a strong opinion in favonr of exempting
Lands fr()1n 8ale, hilt thelll liableto the attach-
ment of their profits for eight or tpn yell\'s. Finally,
:'IIr. Morris, the Chief discussecl all the
view,; of hi,; subordinate>, lmd found more or fault
with them all. as IJPin<> either unworkahle. or
. ,..
ahle, hut Ht tllp same tilllP lIP refused to take upon'
him, .. lf the rpsponsibility of any particular
mem;urp" for adoption. He, 110wf'\'I'r" made alternativp
Huggp,;tions to thp effect that all property in land
should be dechlred exempt from sale in f'xecntion of
civildecrees,and that the only alienation which should
be allowed to the owner was a lease for a term of Ie,.;,
than ten years, 'I' hiph lpase might be transferred to
the crpciitor in of hj,; Clllilll. If tllp JllttPr
measure seemed to he too rad ica l, he suggested the
establishment of Eneumhprpd E,tatE's Courts. 1111(1 Wll<
of opinion that thp Ci"il Court, ,honld refuse to rpcog-
nizp all alienRtiolls sa\'p ('ertifipd hy the ,;aid
Courts. Tllis concludes the ;-'\ixth phasp of tllesp 'Land
Sale ControYf'r,iE".
Xom' of tllpsp discui'sions of 18.59, and 1873, in thp
North-"'est Provinee". of 1 1169, in thp Punjab, of 1871
and 1874 in th\" ('putrlll Provinces, seem to haw 1'1'0-
TilE 1..\"" OF LA:,\l1 i'<ALE 1:,\ RRITIHH J:'\/lIA. 345
d nced IIIIll'h pfi'{'et upon tllP Legislatnr{', {'xeept in
of partial operation for the relief of particular
wllidl were never re('oonized to he an"thino'
:-- .1,..,
hilt t{,IllpOral',Y expedients. 'I'll{' genpml law for the
I're,;irlen('ips of Hpngal, Romhay and :\Iadras ('ontill1wd
to he one of nuf .. ttprerl frePrlom. Sir A. Hobhouse
\'pry ju,tl)' l'll1lraeh'rizPrI the pxtrPIliP proposals of the
()fljeers of tlrp Xortll-\\Tp,;t and tIll' C{'ntral Proyiul'es
fli; tliP 'l'irit. of ,,)] ';OU11<1 l,pgislation. and
}Hh'i,p(\ J1iort' ('autiolls 1'1'O('{'eri in g" , The sllhjt'ct \nIS,
},owe\'p!', not to lw lni<l at rPHt hy t\r{' dictllm of the
Law -'/plllher. and tliP (iowrmIHllt of ]ll(\ia was soon
aftp], forced to take aetion in the last ,tal2;p of this
('ontrovp],,), whieh had it, I'j". this time in the Bomhay
Tlw imrnedillt< oc('asion which attracted
puhlic flttf'ntiol1 to tLe Hllbjp(t in this PI'f'sidency \l'IlS
the outhreak of tille' riots in tll{, Deecfln Districts in
J 875, The in(juirip,; undf'rtflkpn hy the COJllmission
in{'luclpd this among otlrf'r alld they raked up
tire wllole of the litf'ratu)'f' 011 t.lre Hubjectas far as
t Ilis waR c01l':f'rnp(1, It Hl'l'f'l1red frOIll thiR
rp"f'Hrch into rf'cords that aA parly as 18'""'"",
('fll'tain Anderson of tl1f' Rel'emw SllJ'\'ey had ('om-
1,lained of tire IIIP"hanieal action of the Comb, and
nrgf'd tllp lIP('pssity of gptting a valuation of landed
property lIIarle by indel'endf'nt assessors, prior to the
issue of the ordpr of fo\ale and cOlJl)lf'lling judgment
(')'editors to accppt it at that price. Mr. Frere and
346 ESSAYS ON INDIAN
Mr. Ros' recommended tllP of' Lsury
Laws, and the opening of licensed Go\'ernment Pawn-
broker's Shops. )lr. Rose further urged the justice of
exemptiug Houses and Hights from being sold
in execution of money decrees. L sury Laws had
obtained in the Madras and Bengal Presidencies and
in the Xorth-West hut they had fonnd no
place in the Bombay Code of 1827. Accordingly tIlt'
Enaetment of a U imry Law limiting interest to a
maximulll rate of twelve per cent., also the introduction
of some provision requiring all bonds to be registered,
and transferring houses and lands into the creditor',
posses:.:ion. to pay hi ruself out of the usufruct thereof,
in a term of Jneasure,; were suggested
palliatil'e remedies in 18-H, in the of the
Ryot,;. The Gon'rnment of Bombay, hOIl'Pl'pr, negatived
all the,;e prol'osak In 1852, Captain \Yingate took up
the subject of th" Compulsory Sale of tli(' Hyot,'
lands in execution of decrees, and IIrged a change of
the law on tlLP ground that such Sales W('rt' unknown
in the timps of the old Rulers, were furthpr opposed
to Nati\'e feeling, and were but rarely resorted to till
the land Settlements were made. Hp advocated the
policy of declaring that lands siloilld 1I0t he sold on
accOllllt of un8ecured debts, thong-h tllP), might bp
freely mortgage(l and sold \'olllntarily. and in such cases,
decrees might be specifically enforet'cl in regard to
tht'ITl, Captain tYingate a],.;o rt'PommPllflt'd a Usury
THE LAW I,Al\J) S.\J,E 11\ HIIJ'f11:<H ]l"IlIA. 347
Law ami propoRed to invest the Courts with a rliscretioll.
any power to allow proppr interest. He suggested the
of reddn.g,thf' Institution. of Panchayat",
to try :"ummary Suits valued at less than thirty Rupees
and the extf'nsion of a gf'neral InsolYpncy Law. Thl'se
l'Pcommf'ndations remainpd unnoticl'd for nl'arly
thirty ypars, hut it is that almost eVl'ry 0111' of
t],p proposal. thpn mnde hy Captain Wingatl' haR of
latl' rl'eeivpd thl' snnction of tlll' Legislatul'p. TIll'
l'sury Law, thl' Expmption of Lands from Civil Pro-
cess for rmpcll\'p(]. Dl'htf', thp Plmdmyat a
lihl'ral Insolvency LRw,-thf'sP are thl' ll'ading
of tIll' npw Deccan Agriculturists' Relief Ad. To pro
(,I'ed, howp\'pr, with thl' history of till' in 1859.
"II'. Tytlp!, rl'eolJllJlpnrlpd thp I'stablishmpnt of a
HI'.g'istry of till' Ryots' dl'hts in thl' Mamlatdar's Office,
with II dl'w to chl'ck fraurl, IIm:l show all marlp
hy the RyotR, In 1860 :'Ill'. Jacomb suhmittl'd It plan
of Gowrnrnpnt Rnvings and Town Hanks to 111'11'
npl'dy Hyots witll PH"), intprpst. Thl' Governmpnt of
BomhllY did not "llJlport pithl'r of 1'1'01'0-
For thp n(':d tWl'lvp ),1';11'''. Ollic!'!"
f'pl'ml'd not to hrl\(' much of thi,
mbjl'd as tlw brought on thp Country by
high prices sp('nrpri 'f! spnsihll' R(1\'an('e in thl' comfort
of the reOI'll'. In 18i2-73, howl'''l'r hard timei'
return I'd , :ll1rl J\Ir. (now Sir Raymond) '" I'st puhlif'hed
his parnphlpt "Thp Land and till' Law of India,"
348
E"'SAYS 0'> )'>J)[A'> ECOXmll('".
wldeh gay!' hirth to a
ont of the Pn"ideney.
long hoth in and
:\lr. West prop0';l'd that the'
power of alienating land shonld he limitpd. He urged
npon the (ioYernml'nt thllt it should c1eclllre all
assessed land to he f>xpressly inalif>llahle pxeept with
its assent, or renssessahle to a l'al'k n'nt on
alienation for tltp henefit of the pnhlic. If tltis might
he (jePIlIPd to Ill' too strong It Illp,,:<llrp, lop projlospt! to
('ollfinp the powpr of alipnatioll with thp Collector's
('on,pnt to tllp ';llrl'lu,; land. 1. 1'.
(,prtain tixl'd nf>cp,;"ary minimulIl
"llh,i"tPIll'P, and it wa,; thi" pXcp,."
wa, to hp Iiahle to
land
for
Innd
and
f'x('f'eding' a
L'omforta hIe
ilIonI' \\" hich
The
ll\\'\'llings, and the Crops, awl tltp ('nttle of tlJ!'
Agrielllturists Hhould aIR[) bf> expllIl't. His Ilf>xt pro-
posal was that mortgagps and Ipase" foJ' 1110rp than
one yea]' he suhjpdpd to thp same mIl''; a,.: "I'.
\Vpilt further proposed to limit thp right of pllforcing
Il Partition of Property. Th,' mini-
mum re(jllisite for the support of a famil,\' "lionld not
"hould hf'
;';pttl elll
Insoh-ency,
he partitioned, hilt the separating ,harpr,
paid off in money. A sy,;tem of Family
for largp p,tatf'';, and a liberal Law of
<'l'Owlwd the edifice of these propo,ed
"WCPl'lllg re-
mitp to the Ppclder also contributed
literature on this He argued for a reformed
prol'l>(lnre, Il' Law of Bankruptcy, and finally thp ex-
<'rnption of Lan,1 from Rale in pXPclltion of deerePR.
THE LA1I" 01' SALE BHITISH IXIlIA. 3-W
Tid" f'x.>,nption. 1I00n"wr. not to to tl, ..
<"rops or profits of land. "'I' nf'xt han' tl'l'iwl'lirips
"ondllctpri hy tIll' l>""clln Hiots of" \\hi"h
th .. illlrnp(liatf' outeorne heen thf' Df'CTali _-\gri-
<"llltnri"t,;' Belief Act of 18i9. As fill' tl,,-'
of Land :-\ale is concerned. it is to bf' noted thilt till'
('ommis;,jon fE'ported in fa\"olll" of :-\"Ips of
r ,and in execution of money TIH-'y furtlwl"
Ruggested thf' necessity of a liberal Insoh-eney Law.
of the aholition of Civilirnprisonlllent, and thf' esta-
hlishment of Publi" Xotaries and registration of all
payrnents in 1',,,,, Book", The Bombay G-overnIllPnt.
under Phillip \Voclehouse, however, negatil'ecl thp
recommendation in regard t.o the exemption of Land
from as al"o the proposal to aholish imprison-
ment f.)l' deht. "Then Richard Tf'lll)Jlp, !rowel"er,
hecanw (iovernor, Ite took HI' the again, with
his u"ual enf'rgy, and urgf'c\ thp nf'cessity of
giving effeet to the recoIlllIlendations of the COlIlmis-
sion ill tl,e matter of a law exempting Lands from
in execution of money decrees except when they
i,ad been specifically pledged. He aho for a
mol'''' lihE'fI't.l InKolvency Law, and a Law for Limiting
tllP Rate of Interest. These were
Ilpl'l'Oved by the Government of India, and the Dpccan
Agricultnrists' ReliE'f Act was passf'd into La\l-.
"T e have tlllls reviE'wf'd the whole history of
lengthy discussion for thf' past twenty-fil-e years in the
350 ESS.WS ox IXDIAX ECO!'lO'I(('S.
Provinces, in the Punjab, in tilt> C!'ntra)
Provinces, and finally in th!' Rom hay
There can be no question that the r!'lief so tardily
given is in accordance with th!' cons!,r\"ative
and traditions of thp peopl!'. A thorough revi .. \\ of tIlt'
whol!' discussion like th!' one w!' have now Rummarizpc\
can alan!' hring ont all the bearing,; of th is most
important question. The Gov!'rnment of India has
,,,hown gr!'at practical wisdom in refusing to l!'nd its
,;npport to tIl!' more extreme proposals of its H!'\'!'nllP
Officers. :\lr. Justice West, Mr. Elliott. :\[r. fTrant,
:\Ir. Jones and the other authorities apppar to u,; to
hav!' ignored the main conditions of tIl!' problem. TIlt'
Country it< in a transition stag!', passing frolll ,;!'llll-
Fpudal and Patriarehal conditions of !'xi,t!'nee into a
mar .. settled and commercial ord .. r of things, from a
ppriod of disturbance and wars into one of peal'!' and
tranquility, from payments in kind to cash paYlll!'nt,.
from the law,; of CIH;tom to the rule of cOlllp!'tition,
fmm a simpl!' to a more complieat!'d Social Organiza-
tion. No Economic-al L!'gislation can snce!'ed uudpr
circnmstanceR, wbich se!'ks to rnn against thf'
curT .. nt, or the torrent. In all countries proper-
ty, whether in land or other goods, mllst
towards that which mol''' 'int!'lIigenc!', auel
great.er and abstinenc!', and must
Hlip from the hands of those who aTe ignorant, Im-
provident, and hopeless to stand on their own resources.
THE LAW OF LAl'iD 1:'< HHITHm I:'iIiIA. 351
This a law or ProyidelH'e, and can nerer be wisely or
,;afE'ly ignored by practical t<l!" IlIl)" fancied
I
lolitieal on sPlltimelltal As 10110" as thE'
"
differE'nce in the hahits and education of the saYing few
represented hy the Bania and Brahmin e1asHP,;, and the
.'pending many who conllt by millions among the
'Iilitary and thE' cnltinlting remains good a
propprt.') will grayitatp from the one eJass to the other,
notwithstandin,; all prohihitory Lpgislatioll" The
utlllost that LToyernmpnt ean safely ,"enture to do' is to
regulate this ine\'itable transfer, to temper tllf' change
!!o as to ayoid all immediate hardships. An Insoh'pncy I
Law cannot benefit anybody, where n<)ne hut the.
<:,astawap and waifs of f'oeiety wish to degrade them-
sehes to seek its ad'anta.g... A Law of Forcpd Entails
<'an not be expected to work when the notion of equal
inheritanef' by hirth-right is so thoroughly pngrained in
the national mind. A minimum sufficient for suhsis-
tencp cannot be fixed when the natural conditions of
soil and climate permit Df the lowering of the standard
of npeessary comfort to any concei vahle limit. The
force of resistance must wpll forth from within, and
{'an not possibly he Huper-imposed. The forcihle pro-
hibition of all transfer of real property, voluntary and
in\"oluntary, can never mend matters-it can only
stprpotype existing pOl"erty and aggravate existing
helplessness. The Go\'ernmt'nt of such a lllge Empire
cRnnotaiford means to be the Banker of its millions of
352 ESSAYS OX IX lliAX . E(JXo)lICS.
hHIJII'(>nt Tpnants, and cannot p'pudizp thp eilllllging
cowlitions of had and '('Hilty 01' irrpo'nlar rnin-
, ,.,
fall. A" w(> han' said al1ol'(>. it can only adopt tt'IIlI'O-
rary eXl'edipnts, and watch anxiomly thp pffe('t,; of it"
experiments. It must accept inpI'itable the tenriplll'Y
to concentration of tIll' landed capital of the Country,
and only limit its ag'PIH'Y to tllP !IIlllOr work of
the gradual change. The only s(>ttlelllf'lIi
of the Problem that is I'o"ihl, i" not to its taste. It
should withdraw from it" lJl.,ition Lllu(llord. lind
look upon tlw land tax a,; a tax likp allY other 1ll0l1U-
poly taxes, A permanpn! Hyutwari :-;pttlernpllt fixf'fl
in grain which the land l'rodut'Pi<, and COTnlllutpd into
mouey mIllE'S every twpnty 01' thirty year", can alone
fnrnish a Hollltion of this Ag'riC'lIltLll'al Prohlem. If
rlifferenC'ps subsequently spring up hetwpPIl and
cIa,;,. a,; they have on occasions 'l'rnng 111' ill Hpngal.
the Government can interfere a IIlpdiator, and right
matter, hy protpcting thl! weak tIlt> It
will not, howel'er, for tilllcied Political considt'ratio[ls
accept position or allow :\'liddlemell to eomt' Iw-
tween itself and its Pan per Tenants. and its attt'mpb to
undo thp legitimate influence of the saving eall
onJyend in a great disastpr. The Decean Agri(,lll-
tllrii;t,;' Hplipf Ad can Imrdly bring an,Y' permanent real
TP/ipf. whilp tllP standing muse of all the embarrass-
mpnts of the Hyots ('ontilllIPs at work with untellll'f'l'rd
rigidity. It is hoped that the new Regime, from which
na; LAir OF HHITISII IXDJA. 353
all hopp so mueli. will tum attl'ntion to thi8 aspf'ct
'of tin' qw-"tioll and dp\i.'p II rpml'dy wl,ich will f'sta-
an [wconl lwl\n'f'n til!' Economi('al. and
Tntpllp('tllaJ ('nnrlition." of tllP pnpulatioJl. amI secure
thp rf'aJ arhanf'pmpnt of t liP on a pf'rmanl'nt
fonnrlation.
'[be J-nbian 1Re"iew.,
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Christ, The Me,senller. 26. The Relation of Rucldhism
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28. The Refo.-m of Casu', 29. Erlncation on Natiomt.i
30. Th. Conquest of I.he Woold by Indian Thoui'ht.. 31.
The Himalaya,. 32. lfiiller-A Vedar.ti.,. 33 Japan.
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BEING STUDIES OF
KING LEAR, MACBETH, HAMLET & OTHELLO.
By Rev. WILLIAM MILLER, LL.D., C.I.E.,
Principal of thp, Jhulras Christian College,
CONTENTS.
\. KING LEAR ANT) POLITICS,
2, l\IACBETH AND THE RUIN OF SOULS.
:I. HAM.LET AND THE W MiTE OF UFE.
4 OTHELLO ANI) THE CRASH OF CHARAVTEH.
In fOUl' instructive monograph., nr. Miller
lap constant Rtress on the fact that the centml
idea in all Shakespeal'e's gl'eat"" ol'llmll.' is moral,
Rnd that great moral benefit will accrue to any
one who stndies them with C'U'P.
Dr, Mille .. does not ns an nnnotntol' or
clitic. He fixes Ilis attention t'specially
on the ethic,,! side of ShR.kespcarp, tt'a('hing.
lJound ;'7 0'7. Volu", . }>rit:. 1($. Four.
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CLOT" Re. 0 , WRAPPBR ",. I!lrht.
Hamlet and the Waste of Life.--By the
Hon. Rev. William Miller, C.LE., LL.D., Principal
of the Collpge.
In new of a much criticised play;
Dr. Miller, after intr-oouctol'yobservation,
l'e-states his views as to the centlA.l ideA. in all
Slmkespeal'e's greater dmmm; being moral.
After treating of th", dtal'Rctel'S of the subordi-
nate personages in the play, especially of those
who serve as foils to Hamlet, Dr. Miller orA.ws 3.
compal'isoll between the Prince of DenrnA.l'k and
Indian students, of whom he says that, "if they
have something of Hamlet's strength, they havc
lamentably much of Hamlet's weakness." He
closes with a bl'ief statement of the main lesson
which Young India may learn from the drama
most widely known of all the works of Shakes-
peare. Cloth Bonnd, Re. One. III wrappers, As. 8.
Uniform with this volume ano solo nt the smne
price.-(l) Othello and the Crash of Character.
(2) Macbeth and the Ruin of SOlIls. (3) King
Leal' and Indian Pol itics. These four monographs
al'e bound together in one volume under the
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Othello and the Crash of Character.-By
the Hon. Rev. W illiltm Milier, (' .I.E., LL.D.,
Princip"l of the Madras Christian College.
In monogmpb, as in his earlier studies of
KingLea1', JI(wbeth ADd Hamlet, DI. Miller
attention mainly to the morn.! truths iliustrllted
in the drama. In delinellting Ot/wHo and Desde-
mona, he points out that, along with much that
WAS good ItTld noble, thel'e were defects ,md faults
1lI both which opened the way for all the
."ahlmities thltt crune all them - -
01'. Miller looks upon" Othello" as a l'en'lnt.ion
of forces which" more 01' less strongly afiect the
inner life of every mltn "and maillmins that the
way in which those forces are disentangled in it
" from all that is accidental or snperfiGial will be
held by those who rend wisely to be full compen
sation for the pnin which the study of sO unrelieved
a tragedy must muse." Cloth Bonnd, Re. One.
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King Lear and Indian Politics.-By the
Hon. Rev. "\\"illiam Miller, C.LE., LL.D., Pl'incipRI
of the Madms Christian Oollege.
After preliminary remarks on the date and
sources of the pllty, Dr. Miller ""ts himselfto de-
termine the point. of view from which it ought to
be regltrded itS u whole. He finds two great
thoughts l'llnning thl'Ough the tragedy, Rnd
at considerltble length, how these find expression
in the history of each of the principal pelsonages.
He goes on to how the thoughts thus tmns-
luted into R('tion on t.he stnge cast light on the
chief problems of humltn life, and especially on
the right constitution and healthy gl'Owth of
human society. The book closes with a discussion
of the way in which the principles exemplified in
King Lear heRI' on the present state Itnd future
progress of social nnd politicltl life iL India. Cloth
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Macbeth and the Ruin of Souls.--By th<
Hon. Rev. William Miller, ''.I.E., LL.D., Principal
of the ]\[OOra., Christi,m l!',llege.
The book stll.rts with a ,Ii""""ioll of the mllteri"l"
Oil which the tl'llge," i., bll.<;ed. It l'l'glU'cl"
the history uf Macheth as heing in the main a
study of how evil when ollce yielded to gl'adually
i tllluces tot,,) moral I'll in. It show,; how th ..
('pntm I " of the ploy is to mark the st."I"
hy which, and the influences nnrler which, It m:ln
who at tit'st appents wOIthy of arlmiration hpcomes
all that a man ollght not to be." The hook
at. t,he conclllsion th"t it is "as a Rllpt'eme example
of the strife which l'Rgffi emlles.,J.y IUI.l everywher(>
Ot1 p:trth hetwePll the king-,IOt!' of hpa"en ,ltHI th('
kingrlom of hell that .lfacbeth hol.ls the plllce of
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Land Problems in India -CONTENTS :-The
Indian Land By iIb-. Rome8h Chunder
J)uU, C. I. E. RepJy to the Government of India.
By JIr. ]lowes!. Chmoder iJutt, C. I. E. Madras
Land Revenue since 1885. By DeVJmt
Bahad!tr R. Ru.gunatha Rao. The Maams Land
Revenue Syst.em. By .lIr. Gallja'fll J'ell1:ataratna1lJ ..
The Bombay Land Revenue System. By the lIo-n .
.lb-. Goculclrts Pmekh. The Central Provinces
Land Revenue System. By the Hon. ilh. B. K.
Bose. Proposal of a Pprmanent Sett.lement. By
Jr,.. Rornesh Cltn1ule,' /Juti, C. I. E. Re. One.
A,PPENDlx.-MemoriaJ of Retired Indian officials.
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I ndia. Opinions of Local Governments: The
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Lord Salisbury'H Minute on Inoiall Llmrl Revenue.
Sir James Cail'd on the conoition of Inrlia. Mr.
H. E. Sullivan 0n lnoian Lann Ren'llUe. The
proposal of a Permanent. Settlement in the Cenkal
Provinces. Propo,>,l of It Permanent Settlement
in Madras. Proposal of a Permanent Set.tlement .
in Bombay. Land Revenue under Hindu rule.
Land Revenue unner l\f nhome.l:ln lnle.
()UR RELATION TO INDIA Ry J. AS. 2.
Malabar and its Folk.- A 'y>lteJIIAt.le de.;-
"I iption of t.he s"cial custODl" ul\ll in,titutiollli of
.\{alahal'. By T. K. GOI,I Pllnikk"r, n . .t.. Secutltl
Ellition. RI'vi'el! ,u"i enlarged. 17, I R,
19 anll 20 Ilre ",l<Iitions to this e,lition. Uloth
honn,!. IR.
UOIl'TEN1'S:- I. Thought., on M"I,,"al'. 2. A
)I"lahal' Nnil' Talawal!. :{. ]\[alU\lJRkkathRyalll.
4. Tm,litiOllS ,uHI l-iul'''rNtitioM. Ii. The
MRI"h"r Drama. 6. The OnlllH }'estin.I. 7. The
Vishll /<'e.,tiv,,1. 8. The Thi"ll\,,,thira Festi,a!.
9. ]<'I'II,I"li'lII in ){ulallar. 10. CO<'k Festival
at C.,tngllnore. II. The K"ttll K,.lIian:ull.
12. Serpent Worship. I a. Some Depre.""t'I!
Cla",'"s. 14. Village Life. l!i. Romp PhaRPs
of Rpligiolls Lif... 16. The Chl'istillns of
MaJ"lmr. 17. The NIIIII;",tiri. of M"I"har.
18. The VillAge A,tl'Ologprs of l\f"l"har. 19. "'''st-
el'll In tlllence, in )[ a l"hll 1'.
SRI SANKARACHARY A. I. Hi. Life
nnd TirrJ(':->. By C. X. Kri:-..hn:u .. w:lTni Aiyn!'; M. A.,
L.1'. n. His Philosophy. PUlldit SitRllath
Tatt""hhllshall. Both ill 0111' 'Ohllll". Cloth hollnd,
Re. 1.
The Son-inlaw Abroad llnd othel' INDIAN
FOLK 'fA I.ES OF FFN. FOLLY, CLEVER
NESS, NG, WIT AX I) H lTMOUR. .. B\'
P. }tUllllchalJllm Row, B.A., fl.!.., R .. tilP<I Statutory
Ci,ilia". Pricp As. 6. To ""."...rihe.,. of till" I .. di""
Rf!fJiPl'" 4.
Folklore of the Telugus. A I'ollf'<'tion of
hig-hly :tllltl .... iu;,! Hnd
Ry G. R. S"hl'llllli"lo Pa"t"!,,. Prj .... Ann"" R.
of til .... Tilth .. " }W,;"w, " Ann"" 4.
Hand-book of Criminal Law. By
Iyer, B. A., B. L. Price
N. K.
Rs 2.
The Hook contninJ< :-- Introolnction.-(i) Sciell('e
of Ll\w.(ii)PI;m-il'l"" of lAW. (iii) T"hlliar
of the ni,'iNions of JAW. PII,t J.-Snrn.-tnllti,1'
LAw. -Tnhnhu' S(hem .. of the Indian PennI Co.lp.
The J 1"li"n PeMI Co.!e giving d .. the npfinition,
anti elem .. nts of the !levenll off .. ",,,,, An,l clOf:<'ly non
anR.lytiC>llly folJowillg th" InngnAg .. of H,I' ('()fl.,.
POlt 11.- Arljeetin' Lllw--Objeet .. ".I !<COlli! of
E"irl .. ne .. Alld P1"oc ... hup. Tlllonl"I' "el'I'm" of 0,(,
1mlinll El'i",,"ce Al't. Cleal' Allltlysis of thp
E,-i.lenee A(,t wit" tahlps of ti,e 1.101"(' rlifficnlt
portion/< following t.11\' Act. Tlllllllal' Reheml'
of the C,;milllli Pl'oc .. <lme Cone. CI E'li I' lInf1lysis
of the provisions of the Co<le.
A ppen.lix A.-Tnbnhu st tpwent., of the offences
in the IndiAII Pellnl C",le with I'lIl1islllUE'lIt ,m.1
othl'l' Iuticnl,ll.,... B & C. - OI'<Iill"1"Y "".1 arltii-
tiOlllll powel'" of ]\[ngistl'"tes untie I' ti,e C,ira;I'" )
P,cce.lllre Coele. I>.--- a .. nernl Lpg'al l\fnxims.
E.-l"OIeign Lf'gal Maxims specially l'elnting to
Evidence with English eqnivnlents.
Hindu Social Progress: Being R".,;>lYs hy
vllrious write).,.. 011 Hilldu So";,,1 Reform on NlI-
tional Lines; collectpti 11",1 e,liteti by N. SlIbblll"lltl
Pantulll Gal'lI, B.A., B.L. PI' ice Rupee One only.