The Sun.
London, England, 1854-08-09 00:00:00

THE ‘SIPN; 'LONDON,' WEDNESDAY

I have, however, an estimate for the yews 1852-3, and I
think it is desirable that the house should be in possession
of that information, although I am, of course, unwilling to
call upon the house to come to any resolution whiCh does
not rest upon positive and ascertained facts. The estimate
for the year 1852-3 is as follows :
Income £26,915,431
Expenditure 26,275,966

Surplus
During the four years, therefore, already stated, there has
been a considerable and growing surplus; but I am sorry to
say that in that for the present year there is an apparent
deficit to a considerable amount. The estimate for the year
18534 is as follows :
Gross income
.226,586,826
„ expenditure

Leaving a deficit of £872,335
Mr. HIJME--Does that include the expenditure on
account of the Burmese war?
Sir C. WOOrg—l will come to that presently. It is with
very great sorrow that I have to make such a statement as
this. The statements for the four preceding years certainly
led to the encouraging hope that such would not be the case.
At the same time, there are circumstances which diminish,
to a certain amount, this serious deficit. Among the items
of diminished receipts there is one which shoWs a falling
off in the receipts for land of 60,0001. The principal item
of deficit occurs in the article of opium, which amounts to
236,0001. There is also a great falling off of 54,0001., arising
(as we understood) from the abolition of the monopoly of
tobacco in Madras. On the other hand, there is an in-
creased gxpenditure incurred for the 'cultivation of opium
of 296,0001.: thus making a total difference in the item of
opium alone of between 500,000/. and 600,0001. Certainly,
it is one of the most unfortunate circumstances connected
with India that so much of itsreven-ue should depend upon
such an uncertain source as that of opium. (Hear, hear.)
There is also an increased expenditure of 102,0001. on ac-
count of public works. (Hear, hear.) There is also in-
creased expenditure for military charges and buildings,
nearly the whole of which are, I believe, to be placed to
the credit of the Burmese war. There is an increase of
150,0004 for military charges, of which about 40,0001. is
for the transport of troops. The whole expenses of the
Burmese war will, I believe, be under 200,0001. That is
certainly a return which I did, not expect. The whole of
the proceedings have, however, been carried on with the
utmost care, and with the greatest possible attention to
economy. The next item in the increased expenditure is
one which will not occur again. But its recurrence in this
case shows how' necessary it is not to rely upon the returns
taken for a single yearns the test of Indian affairs. Largo
balances have accrued for the payment of the Queen's
troops in India, and last year the total arrears, amounting
to not-lesa than .400,000/., were charged upon the revenue
of the country.. Another item was one of 65,0001., arising
from an increase in the. payment of the debt, in consequence
of the operations connected with the conversion of the debt.
Debentures to the amount of 132,0001., which under cer-
tain ClicunistanCes woild neit'have been placed until' July,
and which vs-dalel have coma into this year's account, were
according to the terms of the conversion placed in. April
last, and have consequently been brought into last 'year's
account. There has been, in point of fact, a transfer of
200,0001. from the fair expenditure of the present:to the
last year. Itwe take the last three years together, there
will be found to be a surplus ; and this is the only correct
mode of dealing with questions connected with Indian
finance. Iby no means despair of future yew's, though of
course, when so large a deficit stares one in the face as in
the present year, it behoves us to be exceedingly cautious
with respect to any financial operations which may been-
tered into. The item from which the largeitiportion of
the revenue of India is obtained is the land revenue: With
respect to Bengal, the land revenue is permanently settled,
and all possibility of increase from that source is precluded.
Where leases are granted for a term of years, there. cannot
be, until the expiration of those leases at least, any Mere:sae
of revenue from the land. In Madras, so far as the land
revenuesare concerned, I think the first operation should be
a reduction of the amount paid for land. I will not now
raise that question, which we discussed some few; nights
since, but I cannot refrain from saying that the tenure of
land in Madras is substantially a tenure subject to very
heavy payments, totally irrespective of the assessments
levied on the land at the present moment. And although a
very able officer (Col. Cotton), who has superintended the
progress of many of the public works of India, states that it
is possible to improve the land up to the full value of the as-
sessment, I should rather see the assessment lowered down
to the rent which the cultivators could fairly pay. I have
no doubt that in many portions of the presidency it is most
essential that the assessment should be reduced. It is quite
true, as has been stated, that a great deal of land is kept
out of cultivation by the system at present in existence,
and lam inclined to believe that by reducing the assess-
ment, and placing it at a fair and moderate amount, a
larger amount of land would be brought into cultivation,
and that ultimately the land revenues of Madras might
even yield a larger sum, in spite of the reduction. The
next great item of Indian revenue is "opium." Nothing
could be more uncertain or precarious than this branch of
the revenue. It has of late years amounted to between
4,000,0001. and 5,000,0001., and in all probability it may be
maintained at that high rate. Whether the present dynasty
should continue in power in China, or whether the
"rebels," as they are called, should take possession of the
country, I do not think that,. even if so disposed, their
prohibition of the use of opium will in the slightest degree
diminish its consumption in China. At the same time the
revenue from opium is one of the most uncertain character,
and we shall be building upon a very insecure foundation
if we rely too greatly upon that source of revenue. The
next great item of revenue in India is salt. -Now, I cannot
forget that during the last session of Parliament this house
came to a vote which I consider ill-advised on the subject
of the salt duty. It can hardly be denied that it is only
fair that the great mass of the people of India should con-
tribute, by the payment of some tax, to the expenses of the
government of the country, and salt is almost the only ar-
ticle on which a tax could be imposed. The salt tax was
the only tax paid by the people of India ; it was onB to
which they had long been habituated, and one which did
not press severely on their resources. Since the debate
which took place last year upon that subject a document
has been placed in my hands which will, I think, contri-
bute to remove the unfavourable "impressions entertained
by many hon. gentlemen with respect to the operation
of the salt tax inlndia. That document is a paper prepared
by Mr. Bedford (as we understood), a gentleman attached
to the medical staff in Bengal, and who took great pains to
ascertain the condition of the people brought under his
care. (The right hon. gentleman here read a portion of the
document in question, from which it would appear that the
lower classes in Bengitl possessed as ample means as the
same classes in most of the civilised countries of the world
of purchasing a sufficient amount of food.) That is a satis-
factory account of the condition of the peasantry in that
portion of our Indian empire ; and with respect to the sup-
ply of salt in that country, which had been a particular
subject of that gentleman's inquiries, he went on to say
that out of 100 persons at his hospital, taken indifferently,
93 stated that they were able to obtain an ample supply of
salt, and two only out of that number stated that they had
not the means of procuring a sufficiency of that article.
I state this in order to relieve the mind of hon. gentlemen
with regard to the vote of last year, because I sent out im-
mediate instructions to the Governor-General of India to
appoint a commission, and one of the most able, civil ser-
vants of the Government, Mr. Plowden, was appointed to
investigate the matter. Mr. Plowden went to Bombay,
and from thence he proceeded to Madras, and when the re-
sult of his investigation is sent home I shall have great
pleasure in laying it on the table of the hOuse. Honourable
members must be aware that great objection is made to
the introduction of the Excise, and great complaints are
made of the cruelty of the native collectors. The intro-
duction of the Excise would render necessary the appoint-
ment of a large number of native collectors, and would
increase their means of extortion and oppression. If the
house should think it necessary to put an end to that mode
of collecting the tax, they will have the opportunity of
doing so. The only other item of revenue to which I shall
refer is the ex:atoms-revenue, which amounts to about a
million a year. The exports from India have materially
increased, and I hope they will continue. My hon. friend
the member for Lancaster, whom I do not see in his place
the Liverpool
ovrefir
pberoolu s
Eastaubs t e
Indias fromA seo
elndia.iati
—(a laugh)—expressed his gratification at the increased
offemthahne
the
eairomthaenr
on To
hand, had stated that he did not entertain any very lively
expectation of any large amount being brought from that
country. The question, however, is one of great import-
ance, and I have directed the Governor-General to pay par-
ticular attention to the whole subject of these fibrous sub-
stances, such as flax and hemp, and to send any reasonable
quantity of articles of that kind that were produced, in
order that they might be submitted to the manufacturers
of this country ; because, in the event of any deficient
supply of flax and hemp from other places, a sufficient
quantity might be obtained from this quarter. This being
the case, it is obvious that there is no certain prospect of
an increased revenue in India, and in most of the items of
expenditure there is no great prospect of much diminution.
As I said before, the large item of expenditure in India is
the army, and a' we have already undertaken to occupy
large increase of territory, without any addition to the
army. We have annexed the whole territory of the Pun-
jaub, the district of Pegu, and the territory of Nag,pore ;
and the only addition that has been made to the military
force' of India is two European regiments and three native
regiments. It could hardly be supposed that the whole
of this vast extent of territory could be managed by
so small a force ; but I think it is obvious that, under
existing circumstances, there is no prospect of any ma-
terial diminution in the number of' our troops. If
hon. gentlemen refer to the statistical papers that
have been laid-on the table, it would appear almost
curious the small number of troops maintained in our In-
dian. possessions. The whole of the Queen's troops in
India amounted to 30,000 men ; the. Europeans in the
Company's service, including officers, amounted to 20,001;
making altogether 50,000. There are about 240,000 natives
in the Company's armies, and these 'with the Queen's
troops amounted to 290,000 men. The contingent from
native princes was about 30,000; and in the whole you_
may say there are 350,000. Now, the few native states in
India maintain of one description or another a large force,
amounting to about 398,000 men. I have no doubt that,
when by the mote .general introduction of railways a•idi-
.tional facilities of locomotion aro given, some reduction
may be made; but, until that takes place, I do not think,
with the additional territory to be defended, it is possible
to make any material reduction in the number of troops.
With regard to the three other great sources of eipense—
first, with
regard
to public works • and, secondly, with
regardei, offic
toe judicial establishments and the salaries of j udi-
that the officers—I think the feeling of the house last year was
expenditure must be increased and not diminished
Under both these heads. I had great pleasure in recently
reading an account of
by Colonel Cotton,the progress of public works. in India
andt another ivork upon the judicial
establishments, and
agency in both these absolute inadequacy of European
works. It is shown to departments is insisted on in these
age be conducted properly
impossible that either of them
agency. I believe Europeans without additional European
the works to be must be sent out if you ex-
pectjudiciously expended. properly executed or the money
There is
expenditure connected with that another great source of
irriga-
tion, and upon these heads of expenditure dertment—viz.,
pretty nearly out of the question. There
any reduction is
expenditure upon which we have been
able
one source of
con-
siderable reduction—viz., the interestito effect a
debt. (Hear, hear.) Nothing has
given
on the Indian
tion than to have completed the total conversion ersn greater satis-
Indian Five per Cents., which are now reduced to
of the
a
mum of 4 per cent., excepting some local bonds. Irnsl'alxii
state the result of these operations. The first portion of
the debt operated on was the transfer loan' of 3,441,000/
•
of which 2,734,0001. was converted, and 707,000% was
taken in cash. The Government of India proceeded with
great judgment in these arrangements, and the local por-
tion was concluded on the 31 of April last. The result of
the whole, so far as we know, up to the end of May, was
this—the whole amount of the Five per Cents. was
23,771,0001. in round numbers. Of that sum 20,701,000/.
has been transferred, 1,370,0001. has been taken in cash,
and 1,700,0001. remains of that account untouched. The
demand for cash increased considerably in India when the
funds of this country fell. The operations of the war pa-

turally produced an effect in India, and cash was demanded.
Before the last accounts came away, the market here -had
turned, and I do not believe the demand for cash in India.
will be greater than it was. In estimating how that
1,700,000/. is to be disposed of, I propose to assume that
it will be transferred and taken in cash in the same pro-
portions as the other portions of the debt, and, if so,
1,200,000/. will be transferred, and 500,0001. taken in
cash. Supposing that to be the case, adding that, to
the portion which we know to be taken, of the whole
Five per Cent. Stock 21,901,0001. will, have been trans-
ferred, and 1,870,0001. taken in cash. But I do not
think this is, after all, a fair representation of the
case. The practice in India is to have open loans ;
any one may pay in money and receive the interest. The
Four per Cent. Loan was closed in September last,
and since then a Three-and-a-Half per Cent. Loan has
been opened. Since the conversion has taken place, and
payments made, there has been paid into these /,130,0J01.,
so that in truth it has been a conversion to that extent,
because we have paid off at 5 and borrowed at 4. Deduct-
ing that amount from what I have stated, the actual
amount of cash is 740,0001. 'only. There have been trans-
ferred actually or virtually in the manner I have described
25,765,0001. There has been taken in cash 1,447,0001., and
the whole of the Five per Cents. have been extinguished.
The saving effected has been 1 per cent, on the sum trans-
ferred, and 5 per cent. on the sum paid off. The amount
of these two added together is 300,0001. per annum. That,
I think, is very satisfactory--(hear, hear)—under the cir-
cumstances, too, of a war just concluded, and a general
war just commenced, and it proves the estimation in which
the stability of the Indian finances is held. If I could have
afforded it, there are two or three taxes in India which I
should have been glad to have dealt with, and among these
are certain discriminating duties and export duties ; but
when I see the whole of the savings absorbed in the in-
creased expenditure for education and public works, and
when I see the opium trade falling off, I do not think I
should be justified at present in recommending or urging
on the Indian Government any large reduction of expendi-
ture. The deficiency last year was 800,0001., and this year
we certainly shall have an increased expenditure. It
would not, therefore, be wise to run any risk by the re-
duction of duties. (Hear, hear.) I do not know that
there is any further point with regard to the expenditure
with which I need trouble the house. I have stated'the
income and expenditure, and I have shown that there is
no great chance of any reduction in the course of the
present year. I shall now proceed, as shortly as I can,
to state to the house what the state of India is generally,
and what changes have taken place in the last year. With
regard to the political state of India, the principal event
has been the arrangements that have been made with the
Court of Ava, which are of a satisfactory character, and
are likely to produce permanent tranquillity. The only
district which is not tranquil is the Irrawaddy, although
it is more so at present than when it was under the Bur-
mese chiefs. The country itself is exceedingly rich ; a
great portion of it fit for the cultivation of rice and cotton;
timber of a very valuable character is obtained from the
upper part of the provinde, and there is every prospect the
acquisition of this territory, which no one regrets being
obliged to occupy more than the Governor-General himself,
will turn out a most valuable acquisition to India. (Hear.)
Hon. gentlemen are aware that the territory of Nagpora
has been annexed. On the north-western frontier tran-
quillity prevails, and several tribes who had, for many
years, committed depredations unchecked, and to whom
great forbearance was shown, have been at last coerced by
military means, and for the ast 18 months not asword has
been drawn in that district. In the Punjanb, beyond the
Indus, the disturbances had been completely put down,
and tranquility had been established 'within our own dis-
tricts, and more friendly relations existed with the Affghan
chiefs. They had co-operated in putting down the maraud-
ing tribes and in proof of the friendly relations that are
established, we have stipulated for the free passage of mer-
chandise to Persia, at six rupees per camel load, under the
protection of the nhief. With regard to Cabool and Pe-
shawar, it could not be expected that friendly relations
could be at once established. There seems to be some ap-
prehension of an attack upon our part ; but I hope before
Parliament meets next year, I shall be able to announce
the establishment of friendly relations with the chief
of Cabool. He has nothing to fear from us, and I
trust we shall be able to show that our interests are iden-
tical. With regard to Persia, of course she is placed
in a different position, her great neighbour on the Euro-
pean side being now engaged in war; but the Shah has ex-
pressed the most friendly wishes towards this country. I
am not aware that with regard to the political state of
India any furtherstatement is necessary. lam happy to
say that the attention of the Government not being dis-
tracted by external circumstances, Lord Dalhousie has
been able to turn his attention to the internal improve-
ment of the country. I need not refer to the proposition
for the improvement of the condition of the native judges
of Bengal. I was asked some time since by an honourable
member what were my intentions with regard to the na-
tive judges. Fcould only say that I would call the atten-
tion of the Governor-General to it. Of course, we can
merely give the suggestions, but the detail must emanate
from the Government of India. We have suggested the
improvement of the condition, and increase of the salaries
of the native judges, and placing them in a higher status
as judges. We have also recommended an improved sys-
tem of police and the putting down of dacoity. • But these
have not yet received the sanction of the Governor-General.
With regard to the north-western provinces, in alluding
to them, I must express my regret at the death of Mr.
Thomason, who has rendered such important services in
that district. (Hear, hear.) A very able civil servant
was appointed to succeed him. The onlygreat event in
that district since Parliament met is the opening of that
most gigantic undertaking the Ganges Canal, which really
exceeds almost any work that we have heard of in ancient or
modern times, Without troubling the house with any of
the details, I may state some leading facts. The length of
the main canal is 525 miles; the length of the branches
373, making altogether a line of 898, or nearly 900
miles. The breadth of the upper part is 40 feet, dimi-
nishing where the two branches diverge, and being 20
feet at its terminus. The depth at the upper part is
ten feet, in the middle' eight, and at the termination five
feet. The water has been let in in order to try the works,
and it has been found that it discharged 6,750 cubic feet of
water per second. The area of country irrigated amounted
to a million and a half of acres, and the population that
will be benefited is six millions and a half. Two great
water-courses are crossed, one 300 feet, and the other 200
feet in width. The canal itself is carried over a valley by
means of 15 arches, and throughout the whole course of the
canal there are side canals wherever there is a fall, so that
each branch is navigable from one end to the other, and
there are in reality 900 miles of navigation, and 900
miles for the purposes of irrigation. Now, the four prin-
cipal Italian works were only 114 miles in length. The two
canals in Egypt were only 120 miles. The greatest of all
modern works, the Erie Canal, was 363 miles long; the four
largest French canals amounted together to only 582 miles,
and the canals of Holland, of the first class, were only 400
miles in length ; so that, in reality, this undertaking was
twice as great as the largest that had ever been undertaken
in modern [times. The whole had been executed under
the superintendence of one man, Colonel Cautley. The
Governor-General had paid him the highest honours, and
the Queen had been graciously pleased to confer on him
the distinction of the Order of the Bath. I will not detain
the house by describing what has been done in the
Panjaub, but it is one of the most remarkable things that
has been accomplished in India. In less than three years a
large tract of country, in which the most lawless habits
prevailed, had been reduced to a state of tranquillity, andl
believe the security of life and property is now as great
there as in Bengal. All this has been accomplished in little
more than three years by a very small number of-British
officers ; a cheap and efficient government has been esta-
blished, and that which we hold to be most important—
viz., European supervision and native agency—has been
introduced, and the whole has been most creditable
'to Lord Dalhousie and the officers employed under him.
About 1,350 miles of roads have been made, 2,467 traced,
and 5,270 more surveyed. An enormous work, •a canal of
270 miles in length, was in course of being constructed,
opening up a vast tract of country, and in spite' of the re-
ductions made in the revenue, there was a surplus in
1819-50, of 25,000/. ; in 1851, of about 60,0001. ; and in
future it may be expected to be 500,0001. Much has been
also done in providing a supply of water for Bombay. In
the Madras presidency additional works are in progress of
erection in pursuance of an order given a year ago, and an
iron steam-vessel, of light draft of water, has been ordered
for the navigation of the Godavrey river, and for bringing
down the cotton of the interior. With regard to the great
question of railroads in India, much inconvenience has
been sustained in consequence of the want of funds, the
effect of the peculiar state of the money market in this
country. Though difficulties, not anticipated, have arisen
on this subject, I have no doubt that the great railway
lines in India will be finished. Little or no delay has taken
place in the execution of the works. Of the Calcutta line,
44 miles were opened, and before the end of the year 24
miles more will be opened. Contracts have been entered
into for the construction of the great part of the line. The
Madras Railroad is going on slowly, but without any ma-
terial obstacle. The Bombay Railroad has been opened
in a great measure since last year. With regard to
the construction of a railroad in the north-western dis-
tricts, the surveys have been sent to the government of
India, and the report will soon be made. Meanwhile a
work of much less difficulty, but of great utility, has been
pretty nearly finished—l mean an electric telegraph from
Delhi to Agra, and from Agra to Bombay. I believe it is
in actual operation, and that it has excited great curiosity
among the natives. It is satisfactory to find that a work
of this kind has been completed in a country like India,
and that it will bo maintained. The Legislative Council
appointed by the late act has been assembled at Calcutta
by the Governor-General, and before long will proceed to
legislate on some of the most important' questions with
reference to the condition of India. Shortly, to state
what has taken place in accordance with the act of last
year, I may mention that the Court of Directors have re-
duced their number to 15. Three members have been
nominated by the Crown ; and I am happy to say that the
whole number, 18, work harmoniously together, and
that no distinction has been drawn between the two
classes of members.' lam bound now, as formerly, to bear
my testimony to the cordial support I have received from
the first from the whole of the directors. I have been sup-
ported by them as if they had been a council of my own,
and great benefit has been derived from the independent
character and from the knowledge of those members-who
had been so long in India. With respect to the law com-
.mission, it has not been able to bring forward any measure
for the sanction of Parliament this year, but early next
Session I hope tabeable to bring in a bill with the view of
all t introduced ed
delays i n
dealing with the Supreme' Court of Calcutta. In India a
commission has been appointed to revise both the civil and
criminal procedure, and I trust early next session to be
able to bring in a bill to establish in India a system of pro-
tcherileureeeuenvetry. Ihp
even moresimpleeein, another thanantheratyeraer tcenhtlayt i
complained of will be removed, and that a simple sys-
tem of procederd, capable of being easily understood by
the natives, will be established in every part of the coun-
try.,• bland due notice '1
have been already laid on the e,
The regulations for the examination of civil servants
given of the half-yearly competition. I thought I should
have been able to state to the house something positive
with regard to the admissions to Haileybury, but the
house is, of course, aware that no nomination can have
taken place since the act came into operation in April
last. A certain number of nominations have been made
which have not been taken up. Of course until they were
taken up there could be no admission by competition. I
have consulted with several gentlemen, principally friends
of my own, who take particular interest in this subject—
with the hon: member for Edinburgh—Mr. Lefevre, Mr.
Lord Ashburton, and Mr. Jolliffe—and I am con-
vinced that the earlier the notice is given with regard to
the competition the better. There are only two other
subjects on which I feel it necessary to trouble the house—
subjects which excited much attention before the commit-
tee of last year, and on which I felt it necessary to take
some steps to carry out the views 'expressed by the com-
mittee. These two subjects are public works in general
g systemb y t
throughout admission
India.
and education. With regard to the public works I am justi-
fied
utter nw
saanYti o fnmen
aotthh aLtetrhde
Ere,
pills
iann:.
stone and Lord Harris concurred in the opinion of the utter I
want of such a systm, Works.haye been undertaken with