The Sun.
London, England, 1856-07-22 00:00:00

sway with many diffieulties. Ito would next proceed to
which was, a comparison
the most important statement,
of the two accounts—tho sketch estirnste
The for 1836 stions7 within
the actual result of the year 1853-51. varia
1856-57, as compared 3-51
with 185, would be—
REVENUE.

Ordinsry.

Increase. Decrease.
£432,542
471,640

Land revenue ...............
Customs
Salt...
Opium •••
Tobacco (abolished 1853)
Post•offic,e
Stamps
Mint
Marine and pilotage
Judicial receipts
Revenue of Straits settlements
Revenue of Coors
Revenue of Nagpor.3
Revenue of Oude
Interest. ou debts due by native

£63,778

413,817

8,338
26,665

32,867 -
46,891 -
14,978 -
35,061 -
1:1,596 -
.- 3,779

350,014
1,095,914

states, &c
Miscellaneous receipts, including
sale of presents
Other receipts :
Proceeds of estates administered
to by the late Registrar-General
Proceeds of assets of the late Go-
vernment in the Punjab, and re-
ceipts from Rajah Gulab Sing
Gain by exchanges

101,012

29,513

56,140

Total £3,0-7,82.: £135,376
Net increase of revenue........... L 2,942,409
EXPENDITURE.

Payments in realisation of the revenue
Increase. Decrease-
Charges of collection, &c.... £lll,-516
Allowances out of revenue by treaty £132,727
Sinking fund, Tanjore . 84
Allowances to village officers,

75,570

enamdars, &c.
Charges of the Nagpore territory...
Ditto, Oude ditto
Charges in India :
Civil and political
Judicial and police 173,779
Public works, buildings, &c 1,030,218
Military
Marine, Indian Navy, &c
Charges of the Straits settlements
Nint
Interest on debt .
Charges in England :
Dividends on East India Stock
Interest on home bond debt
Steam communication with India
Ditto, with extended communica-
tions, paid to her Majesty's Go-
vernMent
On account—building, &c., a steam
vessel for Madras Government
and cost of coals for use of steam
vessels in India

246,235
874,303

193,996

72,832
5,851

98
304,922

43,764

Transport of troops and stores
Furlough and retired military pay
Ditto, marine ditto
Her NI sj est y' troops in India
Charges, general (home establish•
ment, &o.)
Absentee allowance to civil ser-
♦ants
Annuities of Madras Civil Service
Fund
Retiring pay, St. Helena estab-
lishment
Her Majesty's establishment in
China
Expense of transportation of con-
victs
Invoice of stores

54,000
11,856
11:3,692
169

28,560

10,941

474,688

Total
Net increase of revenue £2,942,449
Net increase of expenditure

£408,597
IMPROVEMENT OF 1856-57 AS COMPARED WITH 1853-54.
Excess of expenditure over income, 1853-54 £2,044,117
Excess of expenditure over income, 1856-57 1,635,520

Decrease
That calculation would show the general state of the In
diau finanoos. The deficiency was not so great as had been
generally anticipated, and was even less than he had esti-
mated it in his statement last year. He would, if the com-
mittee allowed, lay befor e them the general result of the In-
dian finances for the last few years. In the year 1852-53
there was a surplus of 424,2571. For the year 1853-54 he
had in his statement last year anticipated a deficiency of
2,670,5181., but it turned out to be only 2,044,1171. For
1855-56 he had estimated the deficiency at 2,057,6331., but
it would not be more than 1,152,1091. The probable defici-
ency for 1856.57 he had just stated at 1,635,520!., subject to
reduction. The committee was aware that there was a
general opinion that the entire of this deficiency was
caused by the excessive expenditure on public works. He
thought he would be able to disprove that statement,
and show that, although a portion of the deficiency
might be attributed to this expenditure, yet there
were other causes which tended to produce it. He
had taken great pains to ascertain the facts of the
case, and Mr. Leech, one of the ablest accountants in his
office, had prepared a statement of theeesult of this expen-
diture. The committee would understand that in order to
arrive at these results he had taken into account only those
which could fairly be considered remunerative public
works. It was a great mistake to include (as Mr. Grant had
done) under this head all those sources of expenditure
which were as incidental to the government of a large terri-
tory as repairs to the possession of an estate. He would
include nothing but works calculated to be reproductive.
There were many works which, even in an economic point
of view, might be considered reproductive • for instance, in
building large barracks, the advantage derived from the
improved health of the men would justify the expenditure.
In estimating the outlay in each he would take the entire
expenditure on civil and military works, and deduct from
it the average expenditure of former years; the balance
would show the expenditure which was attributable to this
source. In the throe years, 1851.52 to 1853.54, the average
expenditure was 719,5331. The entire expenditure in pub-
lic works, civil and military, for 1854.55 was 1,818,9771. ;
deducting from this the average ordinary expenditure, the
balance, 1,09.4,3141., showed the amount of the extraordi-
nary expenditure on works for that year. For the year
1853.56 the entire estimated expenditure was 2,109,9621.;
deducting the average, es before, the extraordinary expen-
diture was 1,390,329/. The sketch estimate for 1856.57 for
the total expenditure was 2,217,7861. ; the board of direc-
tors had, however, disallowed certain items, which would
reduce it to 1,731,3751. ; and deducting the ordinary, as
before, the extraordinary expenditure for the coming year
would be 1,014,7421. These figures showed that if it were
not for this expenditure there would have been a surplus of
346,041/. Before he quitted the subject of public works
he might be allowed to say that he yielded as much as
any man to the excitement on the subject of public works
after the report of the committee of 1832. It was
necessary 'so encourage great public works, but it was
to be regretted that the matter had been taken up
so suddenly, instead of being brought forward by
degrees. A letter was sent round to the various engineers
and officers of the Government on this subject : it was an-
swered by them, as might be expected. As an instance,
ho might mention that a proposal was sent in to the Go-
vernment to make a road from Lahore to Peshawur at a
cost of 4,000'. a mile—about half the expense of a railway.
He merely mentioned this to show the ill-considered
schemes which this desire for public works had produced.
The committee was aware that salt was one of the many
articles from which the revenue of India was derived. On
this subject he wenn refer to the report of a commissioner
who was appointed by Lord Dalhousie to investigate the
matter--a report which had not yet received the sanction
of the local, and stid less of the Imperial Government.
This gentleman said :
" It has been for years(since August, 1817) been open to any
to engage in the manufacturoof salt, accorhieg to the English
method under exeise regulations. The only remaining
question is whether it is possible to introduce any system
of excise effectively where the common native process of
manufacture is adopted. The question is n'w in course of
practical aointion. The Bengal Government, with the full
concurrence of the Government of India, sanctioned, in Sep-
tember, 1854, a set of rules for granting licences to parties de-
sirous of engaging in the manufacture of salt, upon any
method, under an excise system ; so that, in fact, in Bengal
a system of excise has been in course of substitution for the
monopoly arrangements for more than a year past The whole
correspondence ou th© subject will bo found in the appendix,
and it appears to me that all that is necessary is to push en
the present scheme through all the salt-producing districts,
as far as it depends upon the authorities to do so. I am of
opinion that the duty should be at once lowered from its
present amount of 2r. Ba. to 2r. per maund, the rate which
prevails in the North-Western Provinces, the special
additional duty of Sa. levied on the Allahabad lino of
those provinces, for the protection of the Bengal revenue,
being of course discontinued at the same time. I entirely
agree with the Board of Revenue that by so considerable a
reduction there would be a much greater probability of the
price being at once reduced to the consumer, and a stimulus
in consequence given to consumption, than if only a 4a. abate-
ment were made, as heretofore. lam not at all sure that it
might not bo ultimately and speedily beneficial to the revenue
if the rate throughout the Bengal Presidency and the Punjab
were at once reduced to Ir. Ba. per maund, being double the
rate prevailing in the Bombay and Madras Presidencies."
The proposal here made was a very moderate one; but he
wished it to be understood that it was the proposal of the
gentleman only who was appointed to draw up the report.
The committee was aware that a very largo—indeed, the
largest—portion of the Indian revenues was derived from
land. There had always been considerable difficulty in
saying how we should deal with the land revenue of India
—it was a subject which had puzzled the greatest
philosophers and statesmen—bat be believed it was the
general opinion that throughout the Madras Presidency it
would be necessary to have a survey and fresh assessment,
and that nothing effectual could be done till that survey
was completed. In the meantime Lord Harris had not
been insensible to the evils of a too heavy assessment, and
he had expressed a desire that a reduction in many in-
stances should take place. The line which Lord 'Harris
had taken on this subject would be best explained by the
following memorandum :
" His lordship had no doubt that if the Government de-
mand was fixed at 25 per cent., or one-fourth of the gross
produce, not only would that be no loss to the general in.
come, but that there would bo in a short time a large addi-
tion to it by the large quantity of land which would be taken
into cultivation and by the increased consumption of articles
of import, both of which would bo caused by the accumula-
tion of capital. But that the actual loss or gain to Govern-
ment will be only known after the survey has been made and
the assessment fixed; in the meantime, Lord Harris was dis-
posed to think that the general out-turn would be far from
unfavourable to Government.' It would appear that the Ma-
dras Government calculated that with four deputy-surveyors-
general, the survey, &c., of the Madras Presidency will
occupy 22 years, and that its cost will amount to 3,810,000
rupees, but that if the scale of operations is enlarged the
period occupied will be shortened and the total cost will he
diminished. The papers con cected with the proposed genes a'
survey of the Ma has Presidency we: e submitted to the
t
Government of India for orders, &c. It appears that that
Government had informed Lord Harris of their' unanimous''
concurrence with the vewe awl proposals of the Madras
Government"
He believed the best authorities concurred in thinking that
without a new survey arid rssessment it would be difficult
to bring about an increase in the land revenue. It was sa-
tisfactory to find, however, that they were also of.opinions
and Lord Harris amen; the number, that a reduction of
the assessment would have the effect of increasing the re-
venue. Last year he mentioned that, among the production,
of India, there was some hope of finding coal an I ron. In
doing so he was guided very much by what had appeared
in the Indian papers; but he was happy to find that the
;statement was corroborated by the opinion of Lord Dalbou-

sie, who counted upon a valuable and abundant supply of i
both being obtained at no distant date. He need hardly
say that if those important minerals were found in abun-
dance in India, they would have an extraordinary effect in
facilit sting and accelerating the progress of that empire.
(Hear..) There was another exceedingly valuable article of
gro‘A,-th and manufacture in India to which he would for
a moment advert, and that was cotton. Everyboar could
see. the importance of securing from India a large supply
of cotton, and he was happy to say that to a certain extent
the experiments which had been made had proved success-
ful. He would read to the committee a note with which he
had been furnished on the results of the cott,l-ft experi-
mental cultivation in the Bombay Presieletey with the

New Orleans seed :
" With the exception of the Dliarws.l Collectorate the en-
deavours of the Government to LnMce the ryots to cultivate
the New Orleans seed has not been successful ; indeed, in
Ahmedabad, Surat, Broach, sad other cotton districts, the
American plant :5 reported to have been entirely neglected,
or the quantity grown quite insir'',Aficant. However, the area
cultivated with the indigenous,.
of that in 18534 in most o plant was in 1851-5 in excess
: the cotton districts. In Dharwar,
in 1854-5. the acres c':iltivated with the New Orleans seed
were 63,293, agaiv:st 48,403 acres in 1853-4, showing an in
creased cultivat,lon in the former year of 21,895 acres ; and
apparently tad ryots are now so convinced of the advantages
of engagtog in this cultivation that the American plant may
be fairly said to have taken permanent root in this district,
and that the indigenous cotton *ill have to give place to it.
I Therefore, under those circumstances, interference or aid
from the Government to induce the ryots to undertake the
American cotton culture was no longer required in Dharwar,
while in the other cotton districts encouragement on the
part of the Government had not led to results of any con-
sequence, or was likely to produce any permanent effect.
Moreover, there are now scattered over the country Euro-
peans prepared to purchase cotton, either of the Americans or
native variety, of a quality suited to the English market, at
remunerating prices. And further, it would appear that the
prejudices of the ryots to the cotton saw gia for cleaning the
cotton was giving way, and that the use of it was becoming
popular, as the ryots found that saw ginned cotton obtained
from the merchants a higher price than the cotton cleaned
and prepared by the churka or native foot roller ; and that
the work was done more speedily with the saw gin than the
churka, and fully as cheap."
He also asked the attention of the house to the following :
" Mr. Landon, a merchant, who has settled in Broach for
cotton purposes, has established in that district a factory for
making and repairing the saw gin machinery. He has also
erected a cotton factory—an experiment which appears to
have been attended with signal success. For it is stated the
yarns made at Mr. Landon's factory, ' exclusively of short
staple Broach cotton,' fetched in the market nearly 10 per
cent. more than Manchester yarn of the same designation ;'
and that orders had in consequence been received sufficiently
to keep the factory in constant work for some months."
He was sorry that the hon. member for Manchester (Mr.
Bright) was not in his place, as he had ever taken a deep
interest in this question, and would, no doubt, have been
gratified to learn that something was doing towards in-
creasing the cultivation of an article the production of
which he had been most anxious to promote. He was not
aware that there was anything further in the 'statement of
the revenues of India which he need comment upon. He
would only say that he saw nothing to lead them to despair
of an increase in the revenue; but, at the same time, it was
their duty also to look to other means of producing a sur-
plus, viz., to a reduction in the amount of expenditure.
It had been said that it was impossible to lay on fresh taxes
in India. He was not so very certain of that, for on look-
ing round he thought there might be found other things
than now existed on which taxes might be raised. But,
in the meantime, they had to look to the expenditure. The
first great head of expenditure was the Indian army,
and he would at once say on this point that it was next to
impossible to suppose that they could effect any material
reduction in that army. It had been said that a reduction
might be made in the way of employing the native army
more and the Queen's troops less. Now, he maintained, it
was necessary that a large proportion of Queen's troops
should be kept up in India, and particularly that to substi-
tute Indian cavalry for the Queen's cavalry was a proposal
totally inadmissible. He believedthat the presence of Bri
tish cavalry in India was attended with a very wholesome
effect, that they were exceedingly useful in teaching the
Indian cavalry lessons of discipline, and exciting them to
those habits of order and obedience which were of so much
consequence to an army. He was happy to find that the
first representation which he had the honour to make to her
Majesty on the subject of the Indian army had been received
with great approbation. The Governor-General said :
" The Indian army, however, has still higher cause for con-
gratulating itself on the gracious favour which the Sovereign
has lately shown towards it, in raising its officers from the de-
rogatory position in which they have hitherto stood, and in
granting to them the recognition which until now has been
denied to them, of their military rank in every part of the
British dominions, and throughout the world."
Having received that compliment, the Indian army would
be unwilling to have withdrawn from them the presence of
the Queen's troops. There were other questions relating to
the Indian army, such as the substitution in greater num-
bers than at present of irregular for regular cavalry which
were still under the consideration of the Indian Govern-
ment. He hoped that no hurried decision would be come
to upon them. Reductions might be madein the Commis-
sariat and other departments, but it was quite possible to
carry economy to too great a length—a mistake which he
trusted would be avoided in dealing with the expenditure
of the Indian army. (Hear, hear.) He now came to the
civil service. At a former period of the session he was
reported to have said, in reply to a question, that he
thought:the civil service in India ought to be reduced to the
footing of the different colonial service. He never made
any such statement. All he said was, that the civil salaries
ot India had remained almost stationary, while those of the
colonies had been very much diminished. He thought that
the Indian civil servants ought to be highly paid, and that
the best men ought to be induced to go out, but he did not
admit that the Indian civil service was the only service
which required a man to go to a distant and unhealthy
country, and which sent him home jaded and worn out.
The climate of the West Indies and many other places
was, in some respects, as bad as that of India. Oa the other
hand, the salaries of the Indian civil service were upon a
scale far beyond that which existed in any other profes-
sion. He knew of no other service in which a young man of
20 could enter at 3501., or in which a person could rise
from 501. to 4,0001.; but let it not be supposed that he de-
sired anything to be done immediately in the way of reduc-
ing the civil salaries of India. To touch existing interests
would be the worst possible economy, even if it were not
unjust; but it would be the duty of the Indian Government
to keep the advantages of reduction always iu view, and
to reap them whenever practicable. Reduction' it was said,
would he followed by peculation. He did not believe it.
Lord W. Bentinck made greet reductions in his time, and
no ill ensued. In the worst times of Indian peculation and
corruption salaries were high enough. Economy was a
most offensive virtue everywhere, but especially in India.
Financial reformers in England had the support of the
House of Commons and the public press ; whereas in India
the only public opinion was that of the civil service itself,
which was naturally averse from a reduction of its own
salaries. It might be said, indeed, that the only person
whose duty it was to preach economy was the President of
the Beard of Control. He was glad to state, however, that
in June a despatch was sent out recommending very con-
siderable reductions, and—what was of great importance
—allowing public loans to be contracted for public works
to the extent of 1,000,0001. for the next two years. It
was to be hoped that the contents of that despatch
would obviate the necessity of sending out an
accountant to India. A system of audit already existed
there, and the proposal to establish a separate audit here
would require the most attentive consideration, because it
took the power from the Indian Government and placed it
in other hands. (Hear, hear.) Having thus gone through
the revenue and expenditure of India, he should now pro-
ceed to describe the political position of that country at the
present moment. Since his statement last year some dis-
turbances had occurred in India. At that time, speaking
upon the authority of tho Governor-General, I declared
that the whole of India was tranquil. He believed he might
repeat the same statement now, because iu India temporary
effervesceucea could not fairly be said to disturb the
general tranquillity of the empire. But it so happened,
curiously enough, that at the moment ho was speaking
last year an extraordinary species of insurrection—
known as the Santal rebellion—was in the act of breaking
out. To some extent that insurrection showed negligence
on the part of the authorities of India. If there had been
a proper police, or if the authorities had been warned by
certain circumstances which must have attracted the at-
tention of sagacious men, the Santal insurrection might
have been instantly quelled. An ample report upon the
cause of the insurrection had been received from India,
and the Court of Directors had written a despatch,
stating their views upon it. Mr. Bidwell, late commis-
sioner in the Santal districts, who took great pains to
ascertain the cause of the Santal outbreak, was of opinion
that the primary cause was the groat dissatisfaction of
the tribe on account of the oppressive exactions of the
mahajans, or money-lenders, and the corruption of the
naib sezawals (police-officers and collectors of the land-
t)x), and in some places oppression on the part of the
railway employes, and the little check they received from
the Government authorities. The Government of India
considered that the outbreak was caused by the want
of early attention to the complaints of the S antals, or the
oppressions they suffered from the mahajana (native revenue
and police-officers) and zemindars ; and in one instance the
Lieutenant-Governor considered that they had been ill-used
by a railway official. The local officers were greatly blamed.
The above appeared to have been the exciting causes of the
rebellion, fanned by religious fanaticism—the leaders mak-
ing their blowers believe that they were accompanied by
an incarnate deity, under whose coders they acted. Al-
though some few ibif;ances of insurrection had been more
recently reported, it was believed that the great body of the
Santals were settling down peaceably and quietly. The
country had been declared a non-regulation province, and
had been placed under the control of a commissioner, with
a deputy-commissioner and four assistants. These OffiaBl
were vested with judicial powers, and would administer
speedy justice to the Santals, who would thus be relieved
from the oppressive enactions of the mehajans, police and
revenue officers, and zemindara. A new police force was
under organisation, and until that was efficient two regi-
ments of infantry and one of irregular cavalry would re-
main in the Santal territory. The Santals were not to
possess warlike weapons without authority, but were to
be employe] upon the public works and paid for their la-
bour. Stores of grain and salt were to be prepared for the
destitute Santals, and the payment of the rent was to be
thrown over three years. Those were supposed to be the
causes and remedies of the Santal insurrection, which was
an outbreak the more extraordinary, seeing that the San-
tale had been always regarded as a most quiet and inof•
fensive race. The next point to which he mast advert was
the mission to Ave. That mission had not been success-
ful to the extent of obtaining a treaty with Ava, which
Lord Dalhousie did not greatly regret ; but tho reception
which he had met with there was everything that could
be desired ; great honour hed boon shown us, and the
mission had resulted in bringing; about that deserip-
tion of friendship which was much wanted. Another
point of very considerable importance to which he
had alluded last year had reference to our relations
with Persia. Independently of anythin4 that La 1 occurred
in the shape of a diplomatic rupture with Persia, the Per-
sians heel, it appeared, thought themselves justified in
marching upon Herat. It was not quite clear, from the
accounts which had been received—such was the confus'oa
of histories and relations—whether they had been able to
occupy Herat. He believed that the Affghans would 1 e
so unwilling to allow the Persians to enter Herat that they
would themselves repel them ; and as Dost Mahomed had
obtained possession of Candahar he would be able, if he
liked to attack the Persians in Herat, to repulse them. It
was quite impossible that this country should allow the
Persians to obtain possession of Herat. By an engagement
which they Lal entered into in 1853 with the English Fn.
voj, they bound themselves not to interfere in the affairs
of Affghanistan • and, therefore, if it were true that they
had gone to besiege Herat, they had distinctly violated
their engagement with this country, and it was clear that
we could not allow our treaties to be trampled upon and
our honour to be insulted in such a manner. If the Per-
sians, therefore, did not retire from Herat, some means
must be taken to vindieate British honour and to expel

ITIR SUN, LONDO

them from that place. (Hear,) In Making this statement
ho must not omit reference to one of the most important
events which had taken place in regard to our Indian
empire--he meant the acquisition of the kingdom of o,ude.
Ho had presented nearly two months since the WEele of
the papers upon that subject, and a no hicrober
of either house had thoOht P'roPel• to notice it he
presumed that there '*at a 'general consent in the opinion
that the tiequisition of Ouch) was a reasonable thing
for ii&d balhousie to accomplish. Should such not be the
' opinion ho should be perfectly prepared at any time to
defend that step, but at present he should only state
the cause of the transaction, and the motives of the Govern-
ment. Lord Dalhousie, finding from the statements of re-
peated govern ors-general, including Lord Wellesley, Lord
W. Bentinck, and Lord 11Nrlinge, thatthe position of Oude
was derogatory to the dignity and credit of the Indian Go=
vernment, and that the different schemes which they bad
tried one after the other had failed to effect such an im-
provement as was desired, determined, after eight years'
glorious government in India, not to leave that country with
Oude in the condition in which ho had found it. In conse-

queue°, in July last he sent a letter to the Court of Direc-
tors, stating his views upon the subject; and that letter,
which was backed bye minute of Council, reached this coun-
try at the end of September. The persons who coincided in
Lord Dalhousie's opinion were the men of all others whose
principle was opposed to all aggression upon native princes,
who were commonly known as thoadvocates of native rulers
rather than of the system of annexation, and among them
were General Sleeman, General Outram, and General Low.
All the authorities that could be gathered together agreed
that Lord Dalhousie was justified in the view which he
took of that transaction. Lord Dalhousie having sent home
those reports, the Court of Directors did not act upon them
immediately, although the pressure was great, because Lord
Dalhousie was then about to retire from India. A month or
_ _

out any idea that theirlr.bours would be soot to be examined
in /nth; and the commissioners felt that it was not just that
their laboiirs should be sent to be examined by Indian judges,
however eminent they might be. He believed, however, the
commissioners did not complain of their labours being put an