The Sun.
London, England, 1860-05-24 00:00:00

SIR C. TI?EVELYAIV'S FINANCIAL MINUTE.

The minute, or rather protest, of the late Gover-
nor-General of Madras against the financial policy
of the Indian Government has been published in
extenso in many of the Bombay and Madras jour-
nals, and, as it is now confessed, under the autho-
rity of Sir C. Trevelyan himself. The minute ex-
tends to a great length, and we can therefore find
space only for its more important passages :—The
present project, he says, with its new income tax,
licence tax, and tobacco tax, is advantageous to the
European mercantile community, and therefore
popular among " the ruling class which represents
what we call public opinion." But with regard to
the entire native population, it is " a leap in the
dark." As to the principles of the question, Sir C.
Trevelyan says
" We are all ag,reed that the finance of British India must
for the future be placed upon a solid foundation There
must be no more palliatives. A clear increasing surplus
must be established of annual income over annual expendi-
ture." With regard to the late increase of debt, he remarks
that although the capital of the Indian debt has aug-
mented since 1856 from £59,141,052 to X 97,851,807, and
the annual interest from 2l to nearly 41 millions, yet that
the whole amount of liability does not exceed three years'
revenue of the country, the English national debt being at
least 12 years. The debt, he says, is the price paid for the
construction of " the wonderful fabric of the Anglo-Indian
empire," and the only course of policy to adopt is to " accept
it as it stands," and never dream of paying it off, especially
by means of taxation, which "is an extremely expensive
process, a great deal more being taken front individuals
than goes to the State." Passing on to the details, the
Governor of Madras adverts first to the alleged deficiency
in the Indian revenue, which Mr. Wilson had stated to be
6l millions. This he thinks untrue, or at all events much
exaggerated :
"No detailed estimate of income and expenditure is
given. Those who know, as Idoby 19 years' experience,
the extreme particularity with which the probable income
and expenditure of the forthcoming year are calculated in
England and submitted to the criticism of . the public, will
be surprised at the scantiness of the information now fur-
nished. Everything hinges upon this estimate."
Even if the deficiency really exists, Sir C. Tre-
velyan points to the large aggregate of cash ba-
lances in the hands of the Government, now amount-
ing to £19,600,000, against £13,398,000 last year,
as an available source of supply so far as present
necessities are concerned.

Observing that " there are two modes of re-ad-
justing the national balance-sheet, diminution of
expenditure and increase of income," Sir Charles
argues at much length in favour of retrenchment
as against additional taxation.

"The cause of the present financial difficulty is the in-
crease of the military expenditure, and the remedy is to be
found in the removal of that cause—namely, in a Corre-
sponding diminution of military expenditure. The deficit
of next year is estimated by Mr, Wilson at £6,500,000;
but the increase of military expenditure in the current year
before the mutiny, is stated by him at £8,519,227, or the
difference between £21,732,681 in 1859-60 and £13,213,454
in 1856-7."

In his own Presidency the writer states :

" A satisfactory commencement has been in the re
duction of military expenditure. Mr. Wilson observes
that, on comparing the number of troops in the different
Presidencies in 1857 and at the close of 1859, he found the
increase in Bengal barely 5 per cent., while in Madras it
was 50 per cent., and in Bombay 30 per cent. Supposing
the figures to be correct, the explanation is obvious. The
old Bengal native army collapsed, and a more numerous
native army has been raised in its place. The Madras and
Bombay armies remained faithful, and were largely aug-
mented to suppress the mutiny of the Bengal army?'
At the present moment, remarks Sir C. Tre-
velyan, " we stand in a position of great advan-
tage at the turning point of two policies" :
" If we determine upon reducing a large portion of our
native army and improving the condition of the remainder,
the financial difficulty will overcome ;we shall have a
feeling of security which we have not enjoyed for many
years, and we shall be free to work out those improvements
in the different branches of Indian Administration upon
which the prosperity of the country depends."
Sir C. Trevelyan then enlarges upon the disas-
trous consequences which, in his opinion, will result
from the imposition of the new taxes, and which,
as he believes, will cause disaffection, stop progress,
and pauperise the country :
" All people, are, of course, , averse to taxes ; but the
native feeling in reference to the imposition of new taxes
differs in kind from this, and is not so destitute of reason
as may at first sight appear. The natives of this country
have alWays lived under despotic governments ; and in
the absence of any better means of placing a limit upon
the exactions of their rulers, they have been accustomed to
take their stand upon long-established practice, which they
regard as we do our ancient hereditary privileges. Hence
it has always been observed that while they are extremely
patient under established grievances, they are always dis-
posed to meet new impositions by active or passive resist-