The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-02-16
The Policy OF COnquest and Colonies
Tested NJ Last.

The Policy OF Conquest and Colonies
Tested AZ Last.
The recent advices from Europe, read in con-
nection with the once popular and famous boast
of England-that her policy was "colonies,
commerce and conquest full of melan-
choly instruction and bitter lessons.
Within ten days before the Arago sailed, the
Bank OF England had raised its rate of interest
from two and half to four per cent; and pri-
vate letters intimate that further advance
may be expected. This movement-w
here we should call "panic" been caused
by the recent enormous shipments Of silver to
the East to pay for the civil and military ex-
penses of the British empire in India. To ex-
plain them, we must premise by saying that,
Notwithstanding the oppressive and overwhelm-
ing system of taxation enforced by the British
in India, that colony has always been held at
loss to the English. 1t has cost 80 much money
to support the Governor General, and the Lieu
tenant Governors, each of whom lives in orr
entail splendor; to maintain an army more than
Fix times as large as that of the United States;
10 pay enormous pensions to exiled monarchs,
despoiled of their dominions by the East India
Company; to keep up civil service which was
based on the principle that In twenty-five
years every one should grow rich in it; to car
ry on incessant wars and negotiations in
country without roads and without pro-
duce suitable for European consumption
all these have cost so much money
that, as we said, the Indian empire
has always been loss to the
British. Though the government, under the
Zemindary system of Bengal takes one-half
the produce of the country, in the shape Of
land tax, and is equally exacting in Madras
under the Ryotwary system, and in the north
west provinces under the village system, it has
always been necessary to borrow something at
the end of the year to make both ends meet.
In some years the deficit has been small, but in
others it has amounted to s2O,OOO,OOO to
S25,000,0 900, which used to be borrowed in Eng
land by the company.
When British India passed out of the hands
of the company into those of the British go
vernment, it was resolved to adopt new plan.
new Indian stock, commonly called 'rupee
stock" was created and guaranteed by the
British government. This was freely issued by
the government of India at Calcutta and else
where, in payment of its obligations. Unhap.
PLY, the commercial disasters occasioned by
the war; and the general insecurity created by
the same event, rendered this stock very hard
of sale in India; holders, within the past year,
have almost invariably pursued the policy of
shipping it to England to be sold, and the pro-
,eeds RENTED back to them in silver. This
system has been latterly so generally pursued
hat the shipments of silver to the East by each |
steamer have been enormous, as much as
50, 100000 having been shipped more than
once in single week. All of this silver has of
course been bought from France and paid for
IN gold.
So heavy drain could only be withstood
successfully when there was corresponding
influx of precious metals into England from
other sources So long as the Bank Of Eng
land received 100000 week from the
United States and Australia, it could afford to
ship s2,5OO,OOO to India. But when the supply
from this country ceased, as it did six or seven
weeks ago, the result-a monetary panic-was
inevitable.
Some of the foreign journals occasionally
allude to our domestic troubles, and express
for this country. Trying as some of
hese may be, there is no picture presented in
he world at the present time so truly pitiable
As that of England as the mistress of India.
There she rules nation of, by last accounts,
100000 of people, all of whom hate the
English with such intensity that nothing but
military force equal to that of Great Britain
herself prevents their rising and cutting every
English throat in the country. These people
are already so heavily taxed that human inge-
nuity could not extract another rupee from
them. As we mentioned above, one-half the
whole produce of the land in the province of
Bengal (Which furnishes nearly half the whole
Indian revenue) goes to the government, and
every traveller concurs in representing the con-
dition of the Bengal peasantry as beyond ex-
preston poverty stricken. England cannot in
crease the revenue Of India; she cannot reduce
her expenses, or no Englishman's life would be
safe there for an instant; she cannot 60 on az
she is doing without losing, to India, an
amount of coin about equal to the pro-
duce of Australia and California combined.
In return for the bloodthirsty hatred of which
Nena Sahib is the type, England pays to India
so much silver that her home commerce is con-
vulsed her money markets deranged, and her
citizens liable to be overwhelmed by monetary
panics.
Such is the fruit of century's adherence to
the policy of commerce, colonies and con-
quest!'' Such is the legacy left to England by
her Gives, her Hastings, her Wellesleys, her
Dalhousies and her Lawrences. For such a
reward as this did they and their brave COM
rades spend their blood, and did their country
win the envy of the civilized and the execra-
ton of the Asiatic world.