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

I have, however, an estimate for the yew s 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 .
Expenditure

£26,915,431
26,275,966

Surplus .. . . £639,465
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
1853-4 is as follows :
Gross income
„ expenditure

Leaving a deficit of £872,335
Mr. HUME—Does that include the expenditure on
account of the Burmese war?
Sir C. WOOD.--I 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 530,0001. and 600,0001. Certainly,
it is one of the most unfortunate circumstances connected
with India that so much of its revenue 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
150,0001. for military charges, of which about 40,000/. 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 year as the teat of Indian affairs. Large
balances have accrued for the payment of the Queen's
troops in India, and last year the total arrears, amounting
to not less than 400,0001., were charged upon the revenue
of the country. Another item was one of 65,000/., 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 circumstances would not have been placed until July,
and which would have come into this year's account, were
accordins, 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. If we 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 years, 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 be en-
tered icto. The item from which the largest portion 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 thoseleases at least, any increase
of revenue from the land. In Madras, so far as the land
revenues are 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
.and 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 I am 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
4,000,000/. 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 one 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 in India. That document is a paper prepared
by Mr. Bedford (as we understood), a gentleman attached
t., 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 Bengal 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 Customs 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
—d
demand
laugh)—expressed his gratification at the increased
dfiovre
rfibrouspoo l
Eastsubstances
India
s 0
nlndia.iatio n , Theon the
of the L
hand, had stated that he did not entertain any very lively
expectation of any large amount being brought from that
e ,untry. 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 prosnect of much diminution.
As I said before, the large item of expenditure in India is
the army, and we have already undertaken to occupy a
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 Nagpore ;
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. Tho whole of the Queen's troops in
India amounted to 30,009 men ; the Europeans in the
Company's service, including officers, amounted to 20,000;
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 more general introduction of railways addi-
tional facilities of locomotion are 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 snake any material reduction in the number of troops.
With regard to the three other great sources of expense—
first, with regard to public works • and, secondly, with
relgar
°lath judicial establishments and the salaries of judi-
cers—l think the feeling of the house last year was
that
the expenditure must be increased and not diminished
tinder both these heads.t I had great pleasure in recently
by Colonel Cot4u.onn
eestablishments, arid
reading an acco of the progress of public works in India
agency in both these
atnd another work upon the judicial
he
works. It is shown todebr
absolute inadequacy of European
be
departments
impossiblei e itnhsaits t
either
h eo
rn
oi
fn
themtla e s e
agency. I believe
to
without additional European
pact the works to be can be conducted pr
peens must be sent out if
Properly executed or the money
j ud iciously
. ere is another great source of
eh
eawdistl(i)fthexat department--viz., t . . .
expenditure ecxol:nned etda you ex-
Lon, and upon thesec penditure any reduction is
pretty nearly out of thequestion. There is one source of
expenditure upon which we h
con-
siderable reduction—viz., the
debt. (Hear, bear.) 1 NO,hin,,
satia-
tion than to have completed the totalgl me
Indian Five per Cents., which are now reduced men —viz., irriga-
etbeen able to effect-a Lere.st paid on the Indian
greater
odnuverlsion of the
maxi-
mum of 4 per cent., excepting some local bonds.ceta a
state the result of tese operations. The first portionlshall
the debt operated on was the transfer loan of 3,441,0001,0 f
of which 2,734,0001. was converted, and 707,00 s
taken in cash. The Government of India proceeded witha
great judgment in these arrangements, and the local por-
tion was concluded on the 3d of April last. Thy 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 20,701,0001,
has been transferred, 1,370,000/. 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 na-