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ECONOMICS OF BRITISH
INDIA.
BY
JADUNATH SARKAR
Indian Educational Service
FOURTH
m.a..
(Bihar).
EDITION.
Longmans, Green
London.
&
Co.,
ECONOMICS bp
BRITISH INDIA
BY
JADUNATh SARKAR.
Professor,
Patna
M.A.,
College.
Fourth Edition,
Enlarged, re'Written, and brought up
to date.
1917.
M.
90/2,
C.
*'***
Third
pp.),
Fourth
^^^y
March, igog.
March, igii.
^^'
'^-^-<3'
March, igij.
April, igiy.
brought up
statistics
date,
to
So rapid
effects of the
mic transformation
on various aspects of
is
the
econo-
of
it
new
facts
be noted
to
be greatly modified in
facts.
to
have taken
last
statistics
the
Prices,
the
which
chapter (X),
of
Among
191 7
as
is
as available
far
more important
altogether
have
supplied.
Commission
on
High
Indian
Printed at
tariff
changes.
the^KUNTALINE PRESS,
Calcutta by
P.
C.
Dass and
by
S. C.
61,
Bowbazar Street,
Published from
M.
C.
CONTENTS.
Preface to the fourth edition
Chapter
The land
I.
Indian empire,
nomic
aspects,
economic
16
iv
...
1-54
aspects
Himalayas, eco-
of
rivers^
economic
crops
economic
13
4
of
Monsoons,
of
tion of rainfall,
...
...
and population,
area
northern plains,
influences
...
distribu-
crops, provincial
out-turn and export, 26 26 wheat, 27
30 irrigation systems, 32
and return on
29
development
recent
the Punjab,
35
economic importance, 37
produce,
l^^'orests,
40
38
43
39
46
46 India
economic
43
and England contrasted, 48 national character, 51 our eco17
areas, 23
staple
cot-
rice,
ton,
capital
tea,
irrigation
irrigation,
in
their
their
their
ininerals,
transport,
railways,
nomic advantages,
Chapter
distribution,
their
Indian
cities,
55
effects,
53.
The People
II.
statistics,
mmmsm^^'^^
'^^vir
rural,
village life, 56
55 origin and
economic
55-107
growth of
effects of village
and
peasant proprietors, 62
69 Indian laws of
inheritance, jo influence of
and custom, 73 customary
organisation of
75 customary wages, 76
culture, 78 of handicrafts, 79
guilds, 82
83 indigenous trade and transport systems, 85 banking and
system,
58
6^joint
caste
its
effects,
effects,
its
status
rents,
agri-
village
city guilds,
caste
rural
credit,
89
CREDIT SOCIETIES,
97
legislation
money lenders
92
their
on them, 98
principles,
484
classified,
their
'/
v>
90
co-operative
96 their
growth,
loi
advantages,
their
good
ECONOMICS OF BRITISH
VI
effect,
present-day problems
02,
INDIA.
105
in co-operation,
Mac-
foreign
i-^^^eetomic modernisation
113 example
economijc changes
116
Land Tenure; zamindari, 119
mahalwari, 120
123 laws on
123 Permanent
126 and 133 disadvantages
of India,
exploitation
of India,
1 1
of
in Calcutta,
{ii)
(f)
{ill)
ryotwari,
Settlement,
teiiant
its
i36^political
capital,
England, 137
economic
of short-
recent reforms
foreign
I'ight,
effects,
in
revenue policy,
effects of
Chapter IV.
Consumption:
trade, 141
141.
classification
its
'
...
143-161
...
simple
of Indians, 145
of Indian consumption
our standard of
of
how
149
standard,
152 consumption
155 sugar,
159 other things, 160.
life
articles
147
living
131
India and
of
relations
classified,
higher
effects
rising,
156
statistics,
cloth,
Chapter V. Production
Economics
of
...
agricultural
...
and manufacturing
162-215
countries
contrasted, 162
167
facture,
suitable
their
capital,
general
efficiency
in sugar
prospects
of
how
manufacture, 183
189
its
far India
\\2<^
national
classification
Indian
FOREIGN capital:
India,
of
wealth
in
184
in
India,
of
number oi factories
192
progressed in manufacture,
co7nparative
mining, 182
of paper
technical education
progress
mills,
its
196
aim, 199
CONTENTS.
improved
institutes,
why, 201
schools,
its
Vll
defects,
lack
200
early
failure of
205
technical
207
Chapter VI.
Distribution
...
216-263
...
219
by custom, 216
as influenced
State
landlordism,
effect
its
its
is
on
rent,
in
rate,
rent,
their
rise
real
in
in
textile
factories,
their
prices,
statistics,
rise
in
effects
Chapter VII.
2^4
Profits...
on manufacture,
Profit
India's
foreign
teenth century,
trade,
272
how
parts
profits,
264-270
divided,
interest,
profits, 268.
Exchange
Chapter VIII.
component
middlemen's
partly
267 wholesale exporters'
entrepreneurs, 265
...
...
its
...
in ancient times,
during
...
271
th^ nineteenth
271-337
iivthe seven-
century,
272
statistics
of
trade,
their
effects,
ECONOMICS OF BRITISH
VIll
Indian
of
INDIA.
currency, 287
Gold
290
its
investment, 295
line
^best
in future,
for
India,
criticism
to
to
silver
state
tariff,
in
tariff
for
tariff,
against,
Tariff
for
India,
to India,
334.
Chapter IX.
Public Finance
Indian revenue,
Sources of
explained,
of opiu77i
339
stamp
346 "fees"
344
duties,
for
penditure in
Chapter X.
General
policy,
excise,
commercial
i7icidence
358
situation in 19 17,
343
346
347
353
effects of
immediate
361 how raw
tax,
cesses,
of net
details
finance, 349
history
salt
finance,
of taxation, 351
in India,
Economic
effects,
services,
provincial
land revenue
net figures
of
1913, 347
1901-1916, 350
nature of
nomic
details
revenue,
gross and
338
338-357
...
...
ex-
statistics for
its
the
War
358-374
effects of war,
359 eco-
as a
have benefited, 365 war and cotton
consumer, 364 classes
industry, 366 prices and wages, 367 exchange, freight &c.,
370 public finance, 370 import and export
372-3.
injured, 362
total loss in
loss
that
variations,
Bibliography
...
...
...
375-376.
;;
ECONOMICS OF BRITISH
CHAPTER
INDIA.
I.
THE LAND.
Physical features of the country and their
economic influence.
(exceeding by
territory,
of
Europe
minus
numbered
the human race and
in
igii
more
Roman
1 9.5
18.6 p.
c.
in the
Bengal Presidency
16.9 p.
c.
in the
Madras Presidency
14. 1 p. c. in
9 p.
c.
in the
W.
Frontier
8 p.
in the
c.
Bombay
on a
fertile
soil.
Howrah,
Some
937
875
Saran,
853
The average
-together
is
most
the
of
following
Darbhanga,
densely
,,
this area is
essentially
rural
towns.
is
coast-
Muzaffarpur,
though
The population
of
crowded
British
in
I.
population
is
[CH.
Presidency
fall
their
enormous town-
may
defined regions
A.
THE HIMALAYAS.
at
run
the
and
north-western
down
to
the sea
north-eastern
catch
the
vapour-laden
CH.
HIMALAYAN REGION.
I.]
winds.
into
These
the year.
throi;ghoiit
rivers
therefore,
hills,
Assam
in
Kashmir
annual rainfall
the
is
The
Himalayas
network
plains.
retain
much
their roots
of
of the
and
among
rain-water
their floor of
flow.
the
dead leaves,
Throughout
down and
The
the
water
all the
Punjab
is
and regulate
the
supply
of
water
The
Railway
forests
fruits
on the
sleepers, fuel,
hill-side
and beams
yield
timber for
for buildings to
all
The
indige-
in
is
not much.
{d)
The
falls is
now
But
mills.
can
it is
generate
of great potential
importance, as
an enormous quantity of
it
electricity.
may
in
hill stations,
and
we
ECONOMICS OF BRITISH
INDIA.
[CH.
next generation.
I,
vast
of labour in
them.
B.
They
Vindhyas,
Economic
(a)
is
As water-carriers and
employed
step
near the
fertilisers
hills).
:
Their water
when
they
of
canals.
hills
feet (except
The
sill
they overflood.
(6)
As land-makers and
land-destroyers
The
fall
CH.
INDIAN RIVERS.
I.]
upper courses
among
the
hills,
On
is
deposit their
rivers
reaching the
or at their mouths.
The
year
is
silt
of
the Indus."
Lower Bengal
The whole
of the Bengal
is
is
"the gift of
Delta,
50,000
square
i.e., it
of
gift
*'the
down by
carried
an enormous quantity.
At Ghazipur
its
mud
present
for
many
as
this.
the
is
going on at the
The Indus
passed in the
hills
is
with a
fall of
14000
remain-
only 2,000
feet.
its
hills,
its
At the
and below
f^^t.
its
ECONOMICS OF BRITISH
away
their
fields,
houses and
banks at
and Rohri
cities
swallowing up
(at present
[CH.
every
Moreover,
soft
INDIA.
now and
soil
many
alluvial
there
tract
river to the
is
commercial
no means
same channel
In
cities.
an
of confining a vast
for ever.
to
into
same
which a smaller
level.
volume
of
falls
at
the
Ganges.
its
of
course, raising
its tributaries.
its
is becoming obstructed,
and marshes
and stagnant pools are being formed where there were
parts of Bengal
The mass
Lower Ganges, already depleted by
further reduced
by the
being
tributaries.
will
is
One day a
take place
to find a free
way
still
from
its
of water in the
now
sluggish
their
main stream,
will
take
soil
CH.
RIVER TRANSPORT.
I.]
to burst their
waters to the
their
by destroying
and hamlets on
fields
it
for themselves
their
The
way.
in 1787.
are
(c)
As highways
The
high-way
for a
Ganges
of Bengal."
its
mouth
The Ganges-borne
even beyond).
was worth 40
crores of
Rupees
Khan).
Until
It is
navigable
Cawnpur and
(to
trade
of
Calcutta
The Indus is
mouth (to Dera
in i8gi.
its
the
recently
Brahmaputra,
was
the
on
it,
annually (igoo).
These
of transport.
He can
the journey,
his
own
rich
and
eyes.
consult his
his
own convenience
during
The Ganges,
cities and
and populous
particularly,
shrines
on
its
has
many
banks, and
it,
and
But
(i) large
steamers can-
changes in
make
its
bed
water- transport
draught.
The huge
(3)
quantities
of
[CH.
goods
I.
dealt
by
river, at least
rail.
[Bamboo, too,
is
these
sides
(5)
eaten and
and
when
(6) the
Mohua
distilled yields
silk, {^)
whose flower
plant,
timber,
spirit
which
is
the
is
C.
Its
average height
land gradually
is
viz.,
of
Coorg (4000
The
feet.
south,
till it
feet
cul-
above
Vindhyas with
Kaimur range
and in
two converge in
Eastern Ghats
last
we advance
continuation,
The
rises as
in
their eastern
the
east
the
Hills
(rising
to
CH.
I.]
a height of 7000
feet),
and
then,
At
rivers,
Narmada and
Sea.
Tapti,
all the
The
rainfall
on the table-land
other rivers
of Bengal,
scanty (about 30
is
Bay
coast-strips
fertile
on the
and well-watered
Many
here frequently.
the people
have followed the system of storing the precious rainwater at various places by damming up valleys and
thereby forming artificial lakes and tanks, the water of
which
irrigates lands
entirely dependent
on
on a lower
artificial
level.
Agriculture
irrigation.
is
There are
soil of
of the
Deccan
is cotton,
to
lO
is
ECONOMICS OF BRITISH
remarkably
The
grown only
is
and
Delta, C.P.,
rice
extensively
is
in the
pulses,
south
Wheat
suited.
northern valleys.
[CH. I.
INDIA.
spices
grown
abound in the
Madras
in the
coast-strip only.
Sugar-
The minerals
of
Among them
(fast
iron,
and gold
are coal
diamond (now
closed),
(flourishing in Mysore).
is
rich
minerals
in
The
it.
The mines
many hundred
miles
away from
the
the only
means
sea,
with no
The railway
of the country
of railway construction,
of the local
Thus the
is
Modern metal
factories
CH.
INDIAN CLIMATE.
I.]
II
The absence
factory.
coal
of
plains
fields,
indus-
her provinces.
The
and
semi-tropical
tracts
fertile
of
climate
of the
most populous
ently
as
in
European
between nations
and by Nature
is
The
herself...
of her
and
effici-
Division of labour
countries.
" chiefly
way
determined by climate
countries of the world
of
life
and
the
whose
best
climate
is
most conducive
for in these
to
bodily and
countries
the
manufacturing
the
social
"
warm
of
body and
labour requiring
climates
warm enough
to
admit
limited to
of repose in the
open
ECONOMICS OF BRITISH
12
air,
But India
is
at
any place
easiest,
which her
soil
She can be
same
is
is
is
that
in
She
has, therefore,
if
we
own
needs
of civilised
self-sufficient in industry
time,
a con-
hardly any
not already
at the
delightful.
rather
is
There
the natural
and
is
I.
gifted, or
[CH.
(Ruskin's
variety of products
tinent
INDIA.
life.
and agriculture
two
regions
(where
worked).
This
alone
we must combat
it is
factories
may happen
can
be
efficiently
So,
countries)
to
The United
States
first-rate
manufacturing country
also.
India has
the
CH.
MONSOON
I.]
RAINFALL AND
The
the
life
is,
I3.
ITS DISTRIBUTION.
govern India's welfare and
of her peasantry
The scanty
in the south.
RAINS.
Ocean
the
We
and Central
Asia.
currents, viz.,
the
(a)
the
of
is
is
These winds
received.
and storms
the
in
plains of
From March
in the
is
to
very
May we
India.
(b)
is
very useful
to
Assam.
to
the
of our annual
During
the
coast
(the
Bombay
current),
strikes
up the Bay
of
much
the
Central
One
Bombay
India;
smaller volume,
ECONOMICS OF BRITISH
14
and
rent),
disburdens
its
INDIA.
[CH.
I.
Burma cur-
all the
way
The Bombay
line of the
hill districts.
Ghats,
and
Eastern
Rajputana, giving
Punjab.
From
union.
this
of
rainfall
should
The
(a)
The
early in
in
Eastern Punjab
little
Bengal current
away
he intermittent
must
rainfall
or else the
or burnt
young
up.
(b)
CH.
I.]
months
i.e.,
allow
of rain, in order to
the
to
up by continuous sunshine
is
normal
in
Hence, even
if
in
the
two
if
no rain had
fallen.
Of the provinces
of
Plain,
and to consequent
risk of
famine.
The
other pro-
vinces are
is
monsoon of
{Ind. Emp. i.
the N. E.
failed.
The following
W. monsoon
India
meant
is useful,
for
the help of
irrigation.
as
it
shows
each of them.
grown without
if
had
to be
For wheat a
if it is
grow
in
i6
ECONOMICS OF BRITISH
home
is
Divisions of India
Excessive Rainfall
123
...
half or
Malabar)
Assam
and Rajputana.
Normal rainfall
in inches.
Lower Burma
West Coast (southern
West Coast
[CH.
their chief
INDIA.
...
127
109
98
...
Bengal Delta
92
Eastern Bengal
85
Heavy Rainfall
Western Bengal
59
Orissa
57
Chota Nagpur
53
53
Bihar
50
Moderate Rainfall
Upper Burma
42-2
Madras
coast,
North
34-8
.
United Provinces
40-3
39-4
Berar
31-10
Guzerat
33-6
Bombay Deccan
31-9
35-7
Mysore
36-5
CrI.
I.
I
Scarity Rainfall
I7
SOILS.
Madras Deccan
...
...
Rajputana, East
...
...
24
...
23
Rajputana, West
...
...
12
...
...
Sind
...
...
The
...
Provinces of India
24
consists
two
of
strip
coast
along the
Arabian Sea, and the very broad and long eastern plain
along the Bay of Bengal,
fertile
treeless
and sterile
like the
varieties
divisions, Gujrat
are
of
soil
and climate.
(in
Among
Konkan
the
the
Malabar
abundance
its
Khandesh)
Deccan Plateau
is
in
much labour a bare measure of subsisthe Bombay Karnatik or the South Maratha
Country has many well-watered fields and large
""yielding to
tence "
forests
and
is
ECONOMICS OF BRITISH
l8
INDIA.
[CH.
I.
the
in
tracts
hill
north
{viz.,
and
" It
is
made up
Bay
the
of Bengal.
Bengal
is
is
to
551
of jute cultivation
and
and
oil-seeds,
Bihar
plains,
dense
of
its
monopoly
belt
infinity
The average
Presidency
the
tion of
*'
of forests, creeks
Sundarbans) separates
the
and channels."
creeks
rivers,
jungles,
by an
European country
It
has practically a
is
fair quantities of
sugar
pulse,
rice,
alluvial
potato,
north-eastern parts.
extending in
is
Chota Nagpiir
is
its
a mountainous
Nearly
two-
16-4:
to rice.
million tons,
Of
India's
annual
10 J millions
come
of India supplies
CH.
of
UPPER INDIAN
I.]
I9
SOILS.
the great
peopled,
densely
most places
of
fertile
canals have
it
The rocky
water supply.
and
secured
to
an assured
Bundelkhand)
{i.e.,
the
famine.
largest producer of
wheat
is
closely cultivated.
in India,
and
Hima-
the second
first
as regards
W.
the N.
hilly
one-fifth
are
and
four-fifths
plain
The
plains
east
Lahore have
just
sufficient rainfall to
is
sure
The population
in
if
make
favourable
there
here
is
is
the
large,
But
British
is
engineering
skill
irrigation.
it
colonise
it.
This province
is
20
ECONOMICS OF BRITISH
INDIA.
[CH.
I.,
of
millets,
following crops
oil-seeds,
rice.
Central Provinces and Berar, which conand plain country, rice, wheat and the
millets grow equally well, while this division is first
The area devoted to each of
in cotton and oil-seeds.
In the
sist
of uplands
these
five
The population
is
to
million acres.
valuable
is
hills
with abundant
and
the
in
fertile
by
predominant crop, 10 million acres out of a
total of 13*74 being under rice, while moderate
highest
degree,
rainfall.
Rice
is
far the
quantities
grown.
of
tobacco,
Wheat and
oil-seeds
and
But Burma
one of
its
main sources
also.
of
wealth,
timber
is forest.
of 1913.]
The
Rice
grown
in
It
is
the
staple
crop, in
CH.
I.]
21
which
Bengal,
provinces
four
it
are
rice-
area of India.
Bengal and
Madras and
Burma
India
rice area of
lies
acres).
Wheat
is
India,
to the steady
The two
demand
larger
Millets jawav
cholum in
(called
especially
among
are, after
India,
Southern India
of
millet.
cattle fodder of
The stem
Among
chhola)
is
the
of
in
is
jawav
is
country.
the chief
Another
Bihar,
the
U.
P.
and the
gram
very important,
it
or
ECONOMICS OF BRITISH
22
consumed food
large numbers
for
men
of
besides
horses,
The
[CH.
INDIA.
I.
being eaten by
growers of
chief
are
it
the
Sugar-cane,
acres),
is
grown mainly
Punjab
the
(|-
mil.
in the U. P.
acres)
(i-^
mil.
Its
but rapidly
grows
it,
small in
cultivation
is
extending
there.
No
Assam
other
at present,
province
Madras
last.
In 19 II, the C. P.
42-
N.
million
W.
F.
acres
each,
will
provinces in
CH.
I.]
Cropped area
Rice.
Province.
Wheat.
Bengal
197
0*14
Bihar
16
1-34
Assam
47
U.P.&Oudh...
23
Millets
3 kinds.
i'i5
Oilseeds.
Jute.
Total
cropped
area.
r8
27
287
0-3
31-8
0-3
O'l
6-4
Cotton
6-4
4-5
078
1-5
39'4
11*5
3-17
27
38-3
1*3
1-8
30
I "4
4'4
307
2-2
47
25-8
I '5
o'3
147
io*6
0-8
9*5
rg
14-4
and Berar
3'2
10-4
Madras
Punjab
&N.W.
F. Province...
C. P.
Burma
Total
The
...
77
22-6
4'37
077
41-1
14-6
Sugarcane.
15-8
1913):
Tobacco.
247
Tea.
Bengal
216,500
319,000
156,000
Bihar
263,000
115,000
2,000
37,800
8,000
367,000
Assam
ECONOMICS OF BRITISH
24
The
Sugar-
[CH.
INDIA.
I.
{contd.)
Tea.
Tobacco.
cane.
Bombay and
97,000
83,600
207,000
26,800
442,000
55,000
9,800
1,389,300
75,000
8,000
20,000
26,000
15,000
95,000
Madras
Punjab
& Oudh
United Provinces
Central Provinces
& Berar
63,400
Sincl
...
Burma
1,700
Total
From
2'5 mil.
the above
we
572,000
mil.
is first
in sugar, second in
wheat,
far
this
and
third in millets.
Bombay
is first
in millets^
a good second in
cotton,
third in oil-seeds.
Burma
is
fourth
in
rice
and
oil-seeds
and
fifth in
tobacco.
seeds,
in
Bihar
is first
is
jitte.
tobacco.
millets
in rice, jute
second in rice
sugar and
in
CH.
I.]
The Punjab
and
and
25
Berar) are
first in
third in wheat.
is
fourth in cotton.
The
relative
The percentage
province devoted
to
of
its
the
total cropped
different
kinds of produce
in
1913:
Rice.
Wheat.
Bengal
68-6
Assam
73'4
Bihar
50-3
4-2
Millets.
3-6
Oil-seeds.
Jute.
9-4
47
r6
6-3
Cotton
Bombay
. .
97
6-2
47
4-5
H'3
30
Madras
28
Punjab
2-6
32
14*6
4.3
U. P.
15-2
i6-2
11-4
3-8
C. P.
19-3
12-4
i5'5
8-5
i8-2
Burma
707
5'2
IO'2
India
31-1
i6-6
6-4
9-2
ECONOMICS OF BRITISH
26
INDIA.
[CH.
I.
given below
is
Produced
Exported
(1913)
(1913)
Proportion of expor
to production
28
2-45
9 per cent.
8-42
I"2
I4'2 p. c.
190
51 P-
Rice
in million tons
Wheat
in mil, tons
Raw
Cotton
2319
3557
1720
48-3 p.
307"25
289
94
in mil. lbs
Raw Jute
in mil. lbs
Tea
in mil. lbs
Our
principal crops
c.
c.
P- c.
of thcii
growth.
RICE
It is
is
by
the staple
grain
is
eaten
far the
food
b}^
of
the
Bengalis, Assamese,
and
its
use
One-third of
one-eleventh
is
all
of India.
of India.
This
Uriyas,
Marathas
is
under
rice,
Then, again,
CH.
RICE CULTIVATION.
I.]
forms 60
rice
p. c. of the
total
p. c.
rainfall
must be irrigated
most parts
climate.
is
It
rice-
artificially.
India,
of
damp
and consequently
In
c-
field
27
It is
sown
is
and
autumn. In Bengal there are two sowsame season but not in the same field
(a) the Aush or early crop sown in highlying lands
in April and reaped in October
and (b) the Aman^
sown in the lower fields in June and harvested in
harvested in
ings in the
December.
In
some
rich
canal-irrigated
lands
of
tlie
same
field in
Rice
is
a year.
peasants lazy
select
bed,
and then
transplanted
are
elsewhere
to
after
the
it
first
a month the
of
fields
cultivation,
areas
sown
WHEAT
It is
is
always grown
irrigated
Sown
areas
in
this
and a
yield of an acre
30 maunds of paddy.
in
the
rice is
of seeds
The usual
broad-cast.
under transplanted
is poor and
sown on a
young plants
the soil
is
late in
five
October,
and requires
it
months, and in
ripens
in
Bombay
ECONOMICS OF BRITISH
28
and C.
Fhe
p. in four months.
may
ciency of rainfall
The
is
dry area.
and harvested
One
variety
October, in
in
is
annum.
Marna)
sown
crops of
grown
in
in
June
Another variety,
reaped in March,
October,
(or
Deccan, Jawav
of food grains
They
the
In
sown
"Wheat
canal
is
cheapest kind
the
defi-
15 to 20 maiinds ior
I.
be supplemented by
per acre
yield
[CH.
little rain,
water.
INDIA.
Jawav
is
requires some
also
a valuable
fodder crop,
maunds,
besides
Bajva
crops
flourishes
on
soil.
The PULSES
among
second in importance
than butter
is
is
One
CH.
VARIETIES OF COTTON.
I.]
The
29
The
March).
and are
gram
out-turn of
is
7^ to 10 maunds per
acre.
SUGAR-CANE
is
and
The
fined
in
li-
yield
of
refined sugar
gur or unre-
is
3I-
tons
and
COTTON
months
In
its
is
to ripen according
to
rainfall-
is less
The
liable
is
to
five to eight
different
its
coarse
and
injury
varieties.
shorter, but
from defective
Deccan)
Its
fibre
is
the
severe
longer, finer
cold
of
northern
manuring.
though
it
lias
profit in Sind,
is less
by
year.
The indigenous
varieties of the
fibre,
require
JO
ECONOMICS OF BRITISH
larger yield,
and are
less
INDIA.
susceptible
to
[CK.
I.
changes of
Moreover,
cottons.
the
to
consume short
of
long-
stapled cotton
market
Indian mills as a
This disadvantage
locally.
is
Experiment has shown that two varieties of longstapled American cotton (technically called Camhodia
The
total
under
area
increased from
cotton in
British
India
The average
to 25).
and 3f maunds
of fibre
pounds
it,
about i^ maunds
[Cotton seed
of seed.
is
In
is
of
we exported
191 3
sterling.]
The
is
4 or 5 times that
TEA
above
is
grown
sea-level.
at all heights
from 300 to
In North-Eastern India
it
7,oo(.^ ft.
requires a
The gardens
:H.
TEA CULTIVATION.
I.]
:hiefly
ivith
The
jeg'm to be plucked
when
manufacturing
In
irtilicially
They
and
The next
withered
Drocess
leaves
damp
cool
lir.
lifted,
In
91 5,
for sale.
lbs.
of tea.
We
n the British
JUTE
[ands,
supply 60
consumed
Isles.
merged
in
On
manuring and
requires plenty of
whole period of
stalks
its
growth.
higher lands
it
Sown
and steeped
in
water for
amount.
An
may be
Irrigation*
improvement
The
problem
of
/wcZ.
maunds
double of that
m^.,
iii.
ch. i.)
Indian agricultural
is
Eastern Bengal,
ECONOMICS OF BRITISH
32
INDIA.
[CH.
Such
is
is
normal) rainfall
is liable to
great variations.
This area
the
of
soil
do not
in
every case
Lastly,
in Sind
annual rainfall
is
th(
irrigation.
{Ind, Ejnp.,
ii
iii
316-28.)
its
is
distinguished by
the
more
or
whereas the
their
less
irrig^ation
Tank
irrigation
Southern India.
are of ancient
is
system
most prevalent
ir
Hindu
origin.
CH.
IRRIGATION METHODS.
I.]
The above
33
importance of irrigation
to India,
an importance which has been recognised
by our kings and farmers from very ancient times, and
has led to splendid achievements by the British. Three
methods
of
watering
From
(a)
wells,
13*86
are
in
[Of these
million
acres
India
Bombay
and
taken together.
From
mainly
in
Madras,
From
Of the
is
44
p. c.
p. c.
c.
c.
ECONOMICS OF BRITISH
34
INDIA.
[CH.
Area ordinarily
Proportion of
irrigated, in
millions of acres.
area irrigated.
Sind
total
3'44
Punjab
& N. W.
cropped
75 P-
12-36
41*2
U. P.
ii"56
29*3
.>
Madras
9-85
26
0-94
17
,,
Upper Burma
F. P.
...
...
Bihar
12-7
Bengal
2'I
All
46-83
above
the
c.
7"5
,,
19
(Cd. 8157
p. 129.)
Artificial
since the
irrigation
dawn
Madras
River).
{e.g.,
The
ii.
constructed by the
ch. 24).
Muham-
the anicuts or
British
has driven
home
own
days.
Each famine
on
The
irrigation
results
CH.
CANAL PROFITS.
I.j
and public
8157,
as the
finance,
146)
p.
35
of
Percentage of
Capital
outlay in
mil. .
Province.
Area irrigated
in mil. acres.
net revenue on
total capital
outlay.
Punjab excluding
W.
6-87
i2-i8 p.
...
i3"62
...
6-48
8-09
5-6i
2-14
9-83
...
3-58
0-809
2-13
& Sind...
2-66
i'3
478
Burma
1-27
0-28
5-i6
36
1474
8-62
N.
U. P.
F. P.
&Oudh
Madras
Bihar and Or.
Bombay
Some
of the
2i million
The
acres) yielded 42 p.
Godavari, and
water if million
c.
which between
earned 20,
207 and
is
a second
them
17*6 p.
c.
profit-
irrigates
the Krishna,
acres),
c.
interest
on their
ECONOMICS OF BRITISH
36
tive,
the
than
less
INDIA.
[CH.
little
c.
I,
The
class is financed
is
"
The
totals for
19 14 are
capital
outlay on all
p. c.
(Cd. 36
of 1916.)
In
the
Canal Project,
is
nearing completion.
the
It
comprises
When
completed,
the
Triple
to
Jumna on the east into a vast irrigated tract permanently insured against famine." Another irrigation
scheme, called the Sutlej
Valley
Project,
not
yet
million acres in
what
is
now
6 million
sterling.
CH.
FORESTS.
I.]
Forests.
economy
the
soil,
of
Forests
Nature
prevent
its
play
(i)
37
its
of
that which
slowly
during the
minimise
only one-half
and send
proceeds outside),
u\ t regularly
is
rest of
By communicating moisture
through
of
the
it
down
the year.
their
air.
(2)
leaves,
(3)
They
fuel.
(4)
and also
Many minor forest
their
development
ability
of
the
industrial
country
the
of
people to
ways.
forests
At
period.
last in
and even
has
and
(1913)
forests
cover
227
and produce.
p.
c.
At present
63 p. c. of Burma, 46 p. c. of Assam, 19 of
C. P., 14 of Madras, 10 of Bombay, 8*6 of the Punjab,
India,
13*5
of Bengal,
(Cd, 8157).
and only
3*4 p.
c.
of Bihar
&
Orissa.
38
[CH.
(a) Reserved,
and
strictly controlled
(b)
less
Protected, in
by the State
laxer
is
and
Unclassed,
many
The
forest
purposes
areas
of
by Government.
the
different provinces
were
Reserved
Protected
Unclassed
sq. miles.
sq. miles.
sq. miles.
Net
forest
surplus of
1 91
if
Burma
27,332
114,111
19,684
...
82,000
Madras
18,863
802
84,000
Bombay
11,857
C. P.
& Berar
Assam
4,381
Bengal
4,871
U. P.
Punjab
All India
...
476,000
167,000
385
18,401
12,000
1,711
4,030
65,000
4,121
33
39
121,000
2,165
5,203
946
29,000
96,297
8,390
140,925
1,050,000
are teak
CH.
I.]
39
1913),
all
exported),
/ubber,
and
sandal
The home
ebony.
and
sal
sisu)
grass,
fuel,
and
teak
building timber
Nor
wood.
should
elephants be forgotten.
Minerals*
the
in
richest
world
but
as,
among
are
the
The out-turn
facture.
of our
works has no power to compete with foreign manuHence India's import of wrought metallic
factures.
ware
is
steadily advancing,
crores of
Rupees worth
crores
and
inspite
In 19 13,
of
raw
of
her increased
we
exported only
minerals,
saltpetre,
while
ments
excluding
we imported
(i'8 crores).
and
instru-
ECONOMICS OF BRITISH
40
Our imports
INDIA.
in croves of Rupees.
[CH.
I.
1913
1915
3 '94
2-38
775
477
22'02
iri5
337
i8-3
Hardware and
&
instruments
Machinery
Even
and some
of the
Bengal
collieries,
is
the
mines do not
performed by hand,
Our labour
supply,
skilled in mining,
be very
employed.
admittedly
inefficient
the output.
is
and
costly
The
Coal.
fields,
all
India comes
CH.
I.]
and 5
p. c.
DISTRIBUTION OF MINERALS.
4I
The
other coal-
fields.
which last three yield a few thousand tons only. Ninetyfour per cent, of our
total
to
the
in
the
Nizam's
tons, or 3 p.c.
output, in
tons in 1915.
Gold,
Mostly
Mysore gold-fields
from the
(at
and about
3 p.
British
c.
c.
the
Anantapur
in
district,
Madras.
Petroleum.
98 p.
Manganese.
Madras (12
c.
from Burma,
trifling
less
amount from
than
2. p. c.
the Punjab.
p. c),
Bombay
(5 p. c),
From U.
',^y p.
c),
ECONOMICS OF BRITISH
42
[CH.
INDIA.
I.
putana.
supply.
Iron.
Orissa (Maurbhanj),
Chota Nagpur.
Salt.
In
of salt, of
and
lakes,
(a)
191
By evaporation
Madras
of sea-water
&
Sind
...
...
...
By evaporation
of the
...
...
Bombay
Burma
(b)
maunds
1274
0714
4*5
Sam-
putana
(c)
the
W.
Range
and
F. Province
Punjab mines
Our annual
...
...
.,.
CH.
I.]
Value of
output in
Quantity of
millions
output.
43
Number of
labourers
employed.
Exported
abroad.
sterling.
2-3 mil./:
Gold
2-29
Coal
379
Petroleum
0-472
0'2
14,462 tons
Saltpetre
ATanganese ore
"034
1-21
595,761
oz.
133,000
815,047
i:205,598
53,891 cwt.
= ;^302,564
Mica
Ruby,
i:46i,424
dtc.
Wolfram
Total
...
o'055
278,706 carats
...
0-127
1,688 tons
9'63
Transport. (fl)
rivers
Rivers.
181,260
In
5 mil.
Navigable canals.
flourished
There
is
very
cities, shrines,
on
their banks.
little traffic
on
roundabout route.
to pass
by towns and
rivers.
villages
likes-
his-
ECONOMICS OF BRITISH
44
daily provisions
and
his meals,
INDIA.
[CH.
I.
own
time in moving
on.
ally
The railway
crossed.
much
fiat
The Madras
the
canals are
traffic,
;
working expenses.
In Bengal,
little traffic.
the
e.g.,
Buckingham
Diamond Harbour,
They
channels).
just
suffices
good deal
Emp.y
canals the
iii.
of traffic,
which
to
interest
(Ind.
carry on a
355).
traffic
is
In short,
their construction.
on most
Indian
of the
in the deltas of
is
Navigable canals
In
Muhammadan
times our
only
highways
CH.
ROADS.
I.]
45
provincial
chief
Slier
Over hard
etc.*
soil the
Ahmadabad, Patna,
In
low lands
had
None
There were no
bridges.
highways
an agricultural
Bengal or Madras, that depends for its
villages
country like
and marts.
Indeed,
except by ruining
its
is
the
site
flood, that in
river flood
Land
and slow
transport
is
fields beyond.
conducted mainly by primitive
bullock-carts.
carts could
make
trips
Topography,
Statistics,
my
India of Auvangzihy.
ECONOMICS OF BRITISH
46
[CH,
L\DIA.
1.
parties
mule
in
most places
tracts.
the
of
is
used
The camel
hills.
opened
August 1854. ^^
March 1915 we had a total open length of 35,285
the standard (in which
miles, of four different gauges
Railways.
{d)
First
in
the rails
the metre (3
miles,
17,827
the special
and the
light
railway gauge (2 feet apart), 2,906 miles for the last two.
India has, no doubt, a greater proportionate mile-
of
ment
and this
of
goods
is
breakage and
and the
risk
of
theft.
Railways
(i) Saving time to pilgrims, who number several
As they are mostly of
millions of men every year.
in
this
gain
time means increase
class,
labouring
the
in their earnings.
of
CH.
EFFECTS OF RAILWAYS.
I.]
47
(2)
surplus population,
work
tion
at
insufficient.
construc-
places
is
local
have to pay
neighbourhood
less
than
if
The
only.
while
the
consumers
trifle
produce
is
no
growth.
Equalising prices within a certain distance of
(4)
the line.
big
cities,
the
railway.
Owing
little
his village,
and
to
to this
nothing
day he
of
137.)
machine-made manufactures
away
(M orison,
of
p.
foreign
ECONOMICS OF BRITISH
48
(5)
Helping the
[CH.
I.
relief of
quantities of grain
INDIA.
to
affected area.
(6)
Moral
effect
untravelled Indian.
F'or
(Ind.
Emp.,
of railways see
Commerce, 2nd
ed., 193,
of
an
of the
L.
view there
two
is
iii.
362.
Levi's
On
iii.
354,
the general
History of British
From
the
economic point
countries,
island,
304-6.
mind
385-388.)
iii.
(i)
Geographically England
is
is
India
a half-
is
other.
in distribution
we
begin
to
when our
export
and
our
manufactures.
Eastern
raise themselves).
are
indented
with
CH.
ENGLAND
I.]
countless harbours
A.,'^
and creeks
INDIA.
in
'
49
other hand,
is
two
is
iai
mouths
of rivers,
and
Her
harbours.
Bombay
it
on the
India,
or three ports..
singularly deficient
def}'
are
ports,
a,
away
alone
Karachi and
ships..
situated
good deal
at
of
the
money
On
India there
and
inland,
risky
is
The
86 miles
is
come within
away
is
is
very heavy.]
sp gently that
three miles of
it.
Break-
it is
not
safe.
(Ind.
Emp.y
272.)
south-west.
trial
1 8th
"^
century.
ECONOMICS OF BRITISH
50
INDIA.
[CH.
I.
(4)
is
a wet country
the
for
Gulf Stream
damp, and
soil
in
But India
the year.
week
is
(5)
and
tin,
seashore.
Welsh
in
place in the
is
abun-
employed
been usefully
first
iMoreover, there
in
England
is
tenth in
industry
With
India.
of
the
people
agency,
while England
turing
country
is
the
main
agriculture
us,
is
i.e.,
on a precarious natural
predominantly a manufac-
by
Manufacture
effort
is
than on Nature's
gifts.
skill
and
CH.
I.]
tion
is
unknown
life
is
epidemics are
longer,
by
science.
far
death
short
to
do strenuous labour
life
(except
In
unaided by science,
As
(8)
in
is
to
the
fibres of the
court premature
vegetating kind)
very
is
congenial home.
race
the
of
is
In India
away from
body
is
is
man,
The English
all
self-
with things
of the
in
the
case
classes
of
(if
generalisation be
awed by
of Fate,
be led
passion,
wisdom
away by
habitually
conservative,
believing
in
the
they
ECONOMICS OF BRITISH
52
INDIA.
[CH.
I.
Some
imagined.
of
their
aversion
spirit of
heart,
little,
handicap them
in the
madan
sit
Muham-
period,
to-
To
To
spirit
value.
it
woman
to
a nation of
commit
man
to
to undertake motherhood,
selfish
race-suicide.
pleasure -seekers,
When
who deliberately
and
opened new
fields of
the
untimely
work
at
man-power
must be of
When we
home
force
CH.
SOCIALISM IN INDIA.
I.]
in our favour.
In a country
high thinking
still
prevails
and
men
than where
of
production
of equal ability
wages.
expert
scientists,
foremen,
53
command
spirit of
very high
Indian usage
in the
lower
naturally
is
describ-
now been
alism may
even one
good
class,
the
of
organisation
For
such
already
But
it
has
man
or
of
the
as
nation
organisation
a whole
on a
we have
possessing a frame-work,
demand
socialistic
the
basis.
the advantage of
unscientific.
I
But
human
nearly all
the
obstacles
human
of
will
Nature,
can overcome
and man
can
The
resources of
daily increasing,
and
they
are
applied resolutely
ECONOMICS OF BRITISH
54
INDIA.
[CH.
of
in other lands,
potentiality,
man
I.
in
the
all
that
In India, as
which
it
is
the
duty of statesmanship
the
facture,
ancient
agriculture,
artistic
production,
scientific
investigation,
is
on modern
lines
training or assistance.
CHAPTER 11.
THE PEOPLE.
The
lation
village system.
large
is
Though
{viz.,
of
towns.
24
and there
of
c.
p.
is
all the
people
a comparative absence
is
a few years
or the
the
later on, a
became a complete
of the land
the
of the
special
religious
sanctity
a place.
and when,
of
per cent,
urban.
io'4
only
tents
lived,
defensive
city.
cities
sprang up.
Here
it
them
to
come
to his doors.
Puri,
thousands
ECONOMICS OF BRITISH
56
excellent
flourishing city.
sertion
art
became the
II.
large
and
some
or manufacture
centre of a
or ex-capitals,
ness,
[cH.
special
INDIA.
villages
grown
of such
capitals
to exceptional great-
of
sites of extra-
list
British
habituated to
virtues,
cities,
habits
rule
of
opposed to one's
own
street
or
ward
only),
real
is
its
unit
of
the
this
fact
"India
determines
economic conditions.
of
any foreign
II.,
Ch.
themselves,
relations."
II).
Every
CH.
VILLAGE ORGANISATION.
II.]
even when
village,
community,
It
has
is
own
its
such as the
blacksmith,
in
exist
all
it
57
self- contained y
whole.
self-suijicing
and menials,
scavenger,
barber,
priest, watchman,
They
and even its favourite beggar.
villages,
with
this difference
only that in
sion
and
in
hereditary succes-
in
officers,
the
headman and
the
is
oilpresser,
carpenter,
common by
is
any
is
and the
maintained), are
The
a group of villages.
not regularly
grain-
belong
village.
The horizon
and nearly
of the villagers
all their
of
are
many
extremely limited,
which they
to them
very close
demand and
only after
is
immediate neighbourhood.
years.
them
The
two
the accountant.
sell their
;
and the
or
all,
villagers
who come
affect
have their
them
own
to their doors in
away
58
in
cities
[CH.
II.
their
lines,
still life
or
last
years,
15
in our villages so
(the
total
now have
Godavari
of
homes.
their
and search
of
more
lucrative
pilgrimage,
litigation
away from
their
native
villages
of India,
therefore,
extended
he
mouse"
is
the
villager's
no longer
in the chapter
true.
Agriculture
people.
*'
It
on Consumption.
The economic
(a)
village
is
system
CH.
villagers' occupations.
II.]
59
agriculture."
population
Indian
entire
by
of igoi
in estate
20
the
The Census
2).
labourers,
c. field
p. c.
of
iii.
p. c.
12 p.
Emp.,
{Ind.
management,
and partly follow-
p. c. partly agriculturists
6 p.
c.
bv work
Total
in the field.
c*
73^- p.
Thus nearly
tion
livelihood.
Industries are absolutely impossible except in our
larger towns.
of associated cottage
industries practised in
is
unknown
in
in the Indian
villages.
(b)
tlie
In the stationary
and out
of the
way villages,
numbers employed
in 191
2247 millions
i'8
,,
figures
if
we
and pasture.
and hunting.
in agriculture
fishing
:. e.,
72*3 p.
c.
ECONOMICS OF BRITISH
'6o
to
new
[CH.
INDIA.
lives.
and custom
reigns supreme
enough
to adopt
fessions
the
is
eyeSy
The
it).
rule
ambitious enterprise
and the
spirit
away
tempts them
The
staying,
ment
to
of
in
villages,
is
(c)
II.
new
district
fields of action.*
village system
and prevents any rapid supply or displace" The Indian peasant is immobile"
of labour.
less
of
than
we
moving
it
the labourer's
home
and
social differences
between the
no
The
facilities for
improving
their position.
15.
and have
In respect of the
life,
most
CH.
II.]
which the
"
The
each village
of
self-sufficing life
fosters.
more or
villages with
to be of the
same
Association
or concentration of labour
scale
is
(Dupernex, 173).
caste as himself."
impossible
without
they happen
on a large
down
breaking
rural
habits.
(d) Division of
of
the
possibility of co-ordination of
Hence
there
villager
is
has no incentive to
new
artisan or to seek a
are
(See
The markets
entirely
there
skill
make
no
and time.
himself a skilled
orison, p. 8).
small,
differences of price
is
processes of production.
a great waste of
a large town.
(e)
all the
article,
in
they
and great
in two
villages only a
and
brought
about,
tends
to
a small
scale,
deepens the
effect
on
of custom, checks
wave
of progressorof
ECONOMICS OF BRITISH
62
Peasant-proprietorship
In
India the
INDIA.
[CH.
II.
the
fields
{malikana)
settled
cultivate
which they
of
prietors, their
petuity,
still
when
parts
of
they
their
sell
In
please.
Bengal,
right
of
proper-
ownership
permanently
the
the hereditary
and absolute
ryots'')
These
men can
at
will,
and
their
rent cannot be
increased by the
tracts
Against
is
They
are
rest
and mahahvari
of
the
in
effect
India,
peasant-
where the
cultivators (both
tracts) are
mere
lessees
Their rent
is
mere servant of
to
any
court.
In
many
is
their
no appeal
Thus
[CH.
PEASANT-PROPRIETORS.
II.]
63
and
freedom of
cannot prevail
own
because their
sale,
against
opinion,
the
the
ment
Officer.
In
and representing
its
or
hereditary owners
original colonisers,
is
in
the
same
common.
divided
among
whom
village
and
The harvested
the co-sharers.
they
the
is
each
sometimes
in the
But
(bils)
ECONOMICS OF BRITISH
64
classes,
and
position
among
possession
its
INDIA.
11.
owner a higher
gives the
his castemen.
[CH.
various
the
tenancy,
sub-tenancy,
The Indian
are sold at
etc.,
ownership,
of
good
prices.
business.
their
rights
countries, are
to
agricultural
is
Caste and
its
economic significance
The advantages
session
of caste are
hereditary skill
of
training of
(a)
apprentices.
It
and trade
and the
secrets,
insists
(2)
It
acts as a trade-guild
Each
caste forms
and a mutual
benefit
an association which
of the
its
youth of that
members,
(3)
(i)
craft,
supplies
and keeps up a
(5)
fairly
etc.
of
{Hunter, 247
its
Poor
Law
in India
"
249).
Ahmadabad,
CH.
II.]
Where a
65
certain profession
is
members enjoy
their wages at will.
its
(c)
venting
intermarriage
mentally
inferior,
to
and
with
it
India by prephysically
others
Thus
1908.)
[Athenceum, ii Jan.,
It
secures
division of labour to
new
distribution
possible,
extremely
of
some
functions
in
is still
as strong as before in
other respects
its
force for
good and
public.
evil alike
spirit
which
features
its
im-
in fixed grooves,
But
skill.
extent,
difficult.
All
is
and
British
noted above in
ideal condition,
The good
totally disappeared
from Bengal, the most thoroughly modernised province of india. But they are still to be found in Bihar,
the United Provinces, parts of the Punjab,
and Guzrat.
Change is greater at the ports, capitals, and other big
towns, and in districts of which the population is predominantly urban and given to travelling. But where
the towns are few and the people mostly follow
ECONOMICS OF BRITISH
66
home
way but
may
[CH.
II.
many
though
unimpaired,
organisation continues
railway lines
INDIA.
It is
not the
rail-
the
original home,
that
is
caste
from the
occupation
is
but there
rule,
is
This
general
the
is
;
some lower
And
of
Certain occupations
almost impossible.
or
occu-
(See Hunter,
for
some time
is
past.
checked, because
He cannot
caste.
any
rise
much he may
is
distinguish himself.
Hence the
intellect
are
many
There
the
way
of
the
European
infusion
However worthy
guilds,
stands in
the
or desirable an
acquisition
man
CH.
may
it.
II.]
be,
The
67
grow by
men from
birth only,
outside.
and
" Caste
is a symbol of disunion and weakness. A guild may expand and develop it gives free play to artistic endeavour. A caste on the other hand, is an organisation of a
;
lower type
it
-till
grows by
many an
In England
{Ind.
fission."
Emp.
i.
343.)
and
enters
by
his birth
master
may
(4)
way
American
though a
few individual workmen may grow rich in their
own particular business or by acting as contractors
to Government or modern factories. Once a carpenter
of industry" like the
(or smith),
always a carpenter
millionaires,
(or smith),
such
is
the
unalterable
history,
rose
to the
status.
sion,
highest position
irrespective of birth or
Rapid extension of business, change of profesand rise from a lower to a higher rank in the
difficult
caste.
is
among
those
mainly conducted by
ECONOMICS OF BRITISH
68
hands of Marwaris,
the
in
from
caste,
and
all
[CH. IL
INDIA..
but the
Muhammadans,.
internal
distribution
all of
of
last
Caste enables
men
to attain to a certain
industries
to
allied
are
we have
the
fine arts,
but
it
breaks
down when
industries,
those
of
Europe.
(See
Bluntschli's
Even a
many servants,,
and no
There
other.
is
And
section
partake
to
refuses
!
of
Lastly, there
in the absence of
(sreni)
often
a great
a cook of one's
because
loss of skill,
own
caste,
a genius
employed
he
is
in
mentally capable.
great as
if
usefully
is
as
own
grounds.
CH.
JOINT FAMILY
II.]
ITS EFFECTS.
69
The
castes.
off
the
certain sub-
one's
sub-caste
The
joint family:
social
as
unit,
Europe.
effects.
its
common
head,
who
rules
pay
their
earnings
the wants of
and
starts
all,
them
most parts
into
is
his
still
the
and mediaeval
in ancient
All the
under the
In
together
All the
marries them,
This system
in life.
left helpless in
old
age or
dis-
necessary in India.
But
(2)
no member
of
entire
fruits
labour.
western
workmen
is
(3)
spirit
his
of
member
of
is
of such a family.
all its
ECONOMICS OF BRITISH
70
he must starve
INDIA.
[CH.
II,
cast
adrift
manufacture.
(4)
No
distributed
in India,
among
many
individual firms in
the Marwaris
his
kinsmen.
Hence,
rich
one generation.
company
is
also,
on generation
after generation as
a family property.
modern ideas
and individual freedom of action
and growth. A joint home is now-a-days usually
rendered unhappy by a soreness of feeling which is
hardly suppressed and even by open bickerings. The
evidence of our old literature shows that the jointfamily system did not always create idyllic homes
(5)
This system
is
inconsistent with
of domestic peace
The
In India the
which partake
everywhere
partition
else
among
of
the
all
nature of sovereignty.
the
the heirs
the rule.
But
and
Even a property
CH.
INHERITANCE LAWS.
II.J
acquired by a
indivisible
man
through his
during
in
soon as he
In
ed).
in
is
direction
invalid."
(Mayne's
but becomes
"Any
dies.
exertions remains
only,
lifetime
his
liable to partition as
own
71
named
a.d.), the
and
law
refuses
recognise
to
the
right
succeed to
to enforce
the
is
still
undivided.
a partition on her
own
account.
Provinces,
life.
of
in
The United
kshara
any
A widow
is
Dayabhaga
the
treatise
Mita-
1060
a.
dered to be joint
d.),
respect of ancestral
is
co-sharers,
is
now
admitted universally.
The son
or
consent of the
In these provinces
managed by
latter,
we
or
grandfather,
against
of every sharer
is
recognised.
ECONOMICS OF BRITISH
72
an absolute discretion
joint
the
income]
is
the
[as to
vested in the
INDIA.
manager
[or head],
and
and partition
but
an
and complexity
members
a Muhammadan's land
in
infinite
the very
is
of rights characterise
To buy
of this creed.
often
"to
buy
an
is
effected
is
succession.
division of land
cular
to
(Mayne, 370).
account."
of
II.
expenditure of the
act
[CH.
litigation."
one parti-
(in
whom
The conveyancing
is
of
often an impossible
realisable
asset.
suit.
task,
of
is
not a
co-sharers,
constant friction and mismanagement by the managing partner are the usual results, and the estates are
even
if
it
and petty
cultivation.
an individual builds up
it
in his life-time
does not
Thirdly,
Second-
last
longer
CH.
II.]
73
that
is
property all
single
the
member cannot
cution
to
sue or proceed by
the
it.
of
exe-
ruinous litigation
panies
to
way
that
affects
partition
is
property
of
in India.
Lastly,
many and
ment
all
is
rights
to
one
(as
if
they
it
which were
constant communication
Even now custom is a powerful factor in villages remote from railways and towns.
The place of competition as an economic force was
taken by status (i.e., a man's social position as determined by his birth) and custom yor the immemorial
sea-ports,
in
of ancestors).
Dastiiv (or customary usage)
was appealed to as a god, and any departure from old
ways was condemned by public opinion as an act of
impiety.
Apart from the stationary character of
practice
was a
ECONOMICS OF BRITISH
74
lence
of natural
economy
villages of
money
the part of
were
things
paddy
likely to be
taxes
at
many
so
many remote
customary payments of
money
and most
small cane-baskets of
but as
wages,
to
known among
limits,
and
us,
left
of competition has
but
it
most
competition
is
a force of
less
Undoubtedly there
'economic
it
is
importance in Indian
is
not neutralised by
in India
a great deal of
friction'
And
is
the rule,
but
petition
always been
sides
Morison writes,
laws."
&
untouched.
custom.
they
(Cunningham
be settled by competition."
McArthur, 141).
A certain amount
and
may be
introduced, there
is
come
II,
sold,
for each.
[CH.
and small
INDIA.
is
competi-
it is
of the
But
in
world
many
among
sellers is
The same
and
artisans.
In the purchase
among
local
men
only.
CH.
CUSTOM
II.]
IN FIXING
RENT.
75
The
shown
in
how
in
districts.
It
will be
most countries
of
and
India rent
petition
also
was
settled
among
for nearly
the
two generations
sparseness
after the
of population.
defend him
hence
In
to be broken.
it
was
In those unsettled
upon
his interest to
of tenants.
his
ryots
ta
have a large
fifty
has, thus,
we now have
offering
land and
When an
there
But within
it
remained
at the
generally friendly
He
starv-
rack-rent
of
custom
many places.
hands of the
Permanent Settlement,
relations between the
in the
feels socially
united to
ECONOMICS OF BRITISH
76
them
many
INDIA.
of the
[CH.
unknown.
But
first
II.
many
their lands
merely
as
an investment
rack-renting.
hance the rent of a plot of land beyond the rate prevailing in the neighbourhood, (2) that a twelve years*
right' or
him an 'occupancy
permanent tenure without any title-deed, and
(3) that
unless the
In
same
many
right
parts
is
of
in
and tenant
rent
is
still
money
rapidly extending.
The
diaeval
In
me-
paid in kind,
i.e.,
did not
On
the
other hand,
when a sudden
decrease
of
CH.
CUSTOM
II.]
WAGES.
IN FIXING
labourers in
The
monopoly
old rate
77
of skill
Emigration
remuneration.
of
fixed
by
in
local
which
modern
petition does
common
the
in
operate
in
In
result
India,
from
"com-
village artisans.
the
at
no doubt
is
much
more
wages of an artisan (i) employed by a body of villagers
and (2) receiving his wages in kind, must naturally,
of all wages, be the most difficult to alter.
But when
slowly than the price of
a village artisan
is
attracted to a
town
or to public
broken.
Thus custom
by the village
elders
in
the
wages
(M orison,
i8o
raised the
i8ij.
made
of labour, after
rural
economy."
competition
has
such as masons,
But in some cases the customary remuneration has long remained unchanged such
as doctors' fees
and
professional etiquette.
ECONOMICS OF BRITISH
78
The
[CH.
INDIA.
II
of agricultural produce
by custom
was never
factures,
manuthe law ol
Even in
now
subject to
in India.
if
they are
sufficient!};
clever.
is
at
The advantage
first
of such a rise in
enhanced
in Europe, bul
this change,
and
low
prices.
wheat
of selling
in the
it off
It
first
hope of a
at harvest.
realise
were selling
was only
theii
in 19 10 thai
theii
Europe, instead
The knowledge
of the rise
The
-and
its
specia
CH.
VILLAGE HANDICRAFTSMEN.
II.]
land-tenure,
rules of
customs.
79
possess,
by
virtue of
do
not.
{2)
some
In
money
others
tracts
metayership
In the
body
and
of artisans
servants,
its
its
own
return
But speaking
it
management (which
villages the
arrangements for
its
broadly,
and
scientific
of a large estate
by one
result
dreamt of here.
Handicrafts.
India local
(3) In
to the tenants
some
In
makes
collectively
irrigation.
set
rent.
community
agriculture
own
a higher
for
its
has
on the land
well
it
its
has
followed, in
is
In
wants of the
villagers,
or
the
latter
resort to
purchases.
in
India
have
the
embroidery of
e.g.,
Ahmadabad,
the
printed
cloths
8o
ECONOMICS OF BRITISH
[CH.
INDIA.
II.
Lucknow,
etc.
objects of art,
impossible
naturally
Division
craft.
labour
of
in
is
succeeded by an apprentice
The simple
crafts of the
hamlets are
The weaver,
all
still
the
most
Indian industries.
community as well as
Hence they have
inheritors of a family occupation.
a sure market for their production, and their trades are
the brazier, are
regularly
701.}
members
of a
(Hunter
But
in
the
course
of
in
the
competition
with
new plough-shares,
are
now
hoes,
different
make
in
out
which
(dao),
continues to
the
The blacksmith
but he
knows
CH.
8l
DOMESTIC INDUSTRIES.
II.]
domestic
use
which
and cannot
prefer.
localities
different
tastes.)
same mould
The smith
now
careful supervision,
to the father.
domestic industry
among
Bengali
days,
and great
from
among
fineness
women
in pre-British
The prevalence
of caste
the Indian
regular hours.
first,
that
families
the
The disadvantages
for
whole
and working
demand
is
to
meet a new or
impossible.
for,
in the
modern world
work.
;;
82
away from
their
[CH.
II.
cannot work
or
homes.
caste
The
successful introduction
Hindu widows.
Caste guilds.
Most of
its
(i)
caste
members follow
is
same
the
profession,
and
Not only
Many
special work.
madans
their
in industries but
its
origin.
caste,
in
in
It is
due to
are
he
is
is
in his
protected
he can force
his
employer to
among
all
the
members
by reason of the
work by any one of the
of the guild
CH.
II.]
when employment
brethren in seasons
is
is
83
scarce.
This
view.
But a caste-guild also checks individual liberty
and accumulation of capital, discourages the spirit
of invention and enterprise, and prevents or retards
the reform of any old industrial process.
It is suited
only to the stationary stage of society and is the foe
of progress.
{Bombay Gazetteer, vol. iv, ed. 1879, pp.
106-115
Hunter, 245-249.)
City industries.
Many
were
industries
highly
on
Muhammadan
period.
agricultural
which were
life,
leading a non-
cities in effect.
till
These
the end
its
chief
seat,
e.g.,
muslin at
Dacca,
silk
Bidar,
at
at
Mirzapur, horn manuwork at Katak, and woodcarving and bronze work in certain cities of Madras.
In each such town the best workmen of that trade
assembled, and their skill was perfected by long
specialisation and daily intercourse with other masters.
Whole streets were occupied by the members of the
distinctive craft of the place and the importance and
Benares,
facture
prosperity
Their
carpet weaving at
and
silver filigree
of
the
productions
city
commanded
the
whole Indian
ECONOMICS OF BRITISH
84
The European
market.
INDIA.
travellers of
[CH.
11.
the seventeenth
saw
Indian
different
flourishing in
these
Many
cities.
of
Emperor
stable's
the rulers
of
Bernier,
had been
the public
satisfied,
(Con-
governors.
After the
259).
demand of
made their
of
Some
of
these
city
indus-
(esp.
for their
of
Mughal
times, see
my
India
of
Aurangzib
Inscriptions
Statistics^
speak of city
Muhammadan
guilds
and
industries
Islam
Muhammadan workmen
CH.
MUHAMMADAN
11.]
Hindu
artisans,
once formed,
same ward
85
GUILDS.
Most large
workmen, who
(See
Hindu caste
Mughal India had
!
cities of
South;, which
mosques,
of
down
doing
besides
among
(a)
viz.,
the
putting
voluntary contribution of
cloth
industries of India
-\
of
the
a pice
raising
Rs.
for
each piece of
6,000.
Certain
Muhammadans, such
silk- embroidery in
steel
work, damascening,
Benares, fine
copper-smithy,
etc.
But
most
port.
distribution
is
entirely
of India,
trade
i.e.,
and transthe
work
of
ECONOMICS OF BRITISH
86
the country.
The Vaisyas
now
is
II.
in the different
Bombay
[CH.
But even
INDIA.
to the
Guj-
Parsis,
ratis
castes, in the
show remarkable
of
new
markets.
in the U. P. to the
to every
who
to the Marwaris,
and
hardiness, perseverance
and penetrate
prise,
Assam
nook
enter-
dealers,
who
own
merchant, cloth-seller
laneous dealer.
(in
who combines
money-lender,
jan, has
in his
grain-
is
a very
person,
person
supplies
iv.
of India
is
demands."
or
"market on
visit-
in the biggest
CM.
WHERE VILLAGERS
II.]
which aspire
villages,
hamlets there
is
who combines
BUY.
be towns.
to
87
In
the
pett}'-
He
has
is
the
meld or
fair>
many
the people of
is
carried
pretext of
villages assemble
Indeed,
on.
Taken
local
utensils
and
occupation
they buy
European
is retail
their
internal
Their only
dealing
stores
Difficulty of transport
of
manufactures.
is
in
is
small
ECONOMICS OF BRITISH
88
In
done
see trade
INDIA.
[CH.
we
of waterways,
II.
often
in boats.
through the
the
and
rivers
villagers
An
from them.
their stores
Calcutta
prising
and the
nullahs,
on
enter-
publisher
make a voyage on
the
as a travelling shop
On
rivers
we have some
very
whom
are Europeans
and a few
Parsis.
their
who buy
the
and
collect
buy
class of brokers
goods
they are
to
the
special
its
canal wheat,
is
richer
and accumulate
or provincial centres, whence
centres
leaf,
ports of embarkation,
Rangoon
rice,
and Bombay
for
in local centres.
at these
in the district
expoit has
tobacco
oftener,
them
or
shippers'
agents,
jute, grain or
ryots
their
is
for
rice,
Hoshangabad
&c.
a few weeks
Travelling
in the
Each
Karachi
staple
of
district
Bengal
for rice,
cotton.
viz.,
for
cotton,
Rangpur
brokers assemble
for
here
opened
89
INDIGENOUS BANKING.
their
obscurity.
grain
of
iii.
301).
Indigenous organisation of banking and agricultural credit. The trading classes described above
Marwari
of rich temples
In
and monas-
the
financial
means
of hundis
is
is
the
or notes
correspondents in
Marwari firm
operations within
many
transmission
of
credit,
distant parts
efficiency
from
money by
on with remarkable
up
of
Much
all
country.
the
is
carried
generation
to
and bankruptcy
of their capital
is
locked
ECONOMICS OF BRITISH
90
INDIA.
[CH.
II,
The
bad
village
security
of
The
debtors.
his
the
is
rural banker.
is
only
due to the
vast majority
of
consequently no credit.
is
the
agricultural
improvement
is
mortgage
entirely dependent
The
in India
chief obstacle
the weakness
is
of rural credit.
On
land has
risen,
the
ryots
(or
thirty
permanent
them
purposes.
for
and
marriage
a danger-
of the
Bania enables
so tempts
them to ex-
and
other unproductive
money
lend
to possess a
The presence
travagance
who happen
to
officers
37i
to be written
Bad
is
p.
c.
ofiE
The money-lending
classified thus
I.
may be
Rural Bankers
I.
agencies of India
The Bania
twofold,
or Mahajan,
viz.,
capital (which
(a)
is
good),
and
(6)
to
practise
H.
INDIAN MONEY-LENDERS.
II.]
usury
money
by lending
purposes (which
The
2.
recently
Societies,
is
QI
unproductive
for
bad).
Co-operative
started
which mainly
Credit
finance agriculture.
3.
Mughal emperors.
Indigenous Urban Bankers
II.
4.
The Seths
or Sahukars,
managing hereditary
finance
agency
(c)
with
joint-stock)
large
They
capital.
(a) chiefly
inland
traders
the
or
security
of
(this is usury)
distributing
local
manufactures.
Modern
III.
Joint-stock
capitals
3.
Banks
at
the
provincial
chicfly transact
exchange
and
to a lesser
trade,
finance industries
ECONOMICS OF BRITISH
92
IV.
They help
7.
INDIA.
[CH.
II.
Amateur Money-lenders
V.
Zamindars'
8.
officers
who
g.
money on
in
the
cities
lend
and
ornaments.
Professional
10.
trict
towns,
men (mainly lawyers) in the diswho open " Loan Offices " on a
Several
classes
among them
Bengal,
in
lending
unhesitatingly
to
classes, especi-
engage
in
money-
The
The indebtedness
to India.
of the peasantry
we
is
find
not peculiar
it
a normal
II.]
In the countries
in debt.
93.
where peasant-proprietor-
heirs,
and
he becomes
heavily involved in debt in the very act of succeeding to the property, and has therefore no capital
for
making improvements.
owing to the
ised countries,
the
which
is
of
on
has to be practised,
very costly.
industry, dependent
left
civil-
pressure of population
cultivation
intensive
soil,
Moreover, in most
difficulty.
in
Plough-cattle
borrow
in
order to buy
and he must
Thus
them.
agriculture^
In
more
the
intense form
ryots
have to
is
of a
in
and
their
closed.
tural
The
price
of
is
power.
vident,
is
never
agriculland,^
borrowing
Hence
his
extravagance
ECONOMICS OF BRITISH
94
INDIA.
[CH.
11.
credit.
value of land.
The
British
agricultural
of a bond fide
The
tribe.
money
lending
legislation
payment.
and
retical
disadvantages
and
children.
foolish like
interfering
of
is
the
indebt-
It
edness
This paternal
justifiable
is
helpless
from
no longer buy
discouraged
professional
societies
(died 1888), a
like
humble
the
Raiffeisen
village
mayor
of
of
co-operation in banking
among
small capi-
He
of
type in
movement became a
this
established
first
aim was
1865,
his
first
and the
Wollem-
Italy.
He saw
CH.
II.]
95
com-
a rigorous
test of
membership.
The
local
among
reserve
These
the
societies
peasant witli
facilities for
so that agricultural
interest,
ed capital
may
(i) to
provide the
improvement on borrow-
be profitable, and
(2) to
guard against
of
peasantry
results.
the
is
educational
worked,
successfully
mutual help.
progress
poorest,
and reform.
if
mere
All are
admissible,
and
of local
even the
In
Italy
has reclaimed
and education."
ties
to
thrift,
the
The
unproductively.
and
It is difficult
to
extravagance,
sobriety,
industry
character
but
ECONOMICS OF BRITISH
96
[CH.
INDIA.
II.
persons in
on
their
own
more than a
fixed
money only
lends
No member
credit.
in
number
own
its
of
of
of shares.
The bank
(2)
i.e.,
the creditors
new applicants
(3) The
good character.
bank work
the
it
permitted to take
locality,
to the
managers
is
each other.
for
among
or raising a portion of
and the
gratuitously,
only to
added
known
to the reserve.
(4)
The
rest
of
the
The general
its
member-
and operation.
(6)
The administration
being
office,
economy
There
is
and
in the
is
equally local
members
management.
security
all
funds
of
the
CH.
II.]
members and
paying the
(e)
i.e.,
"The
employed
locally
(Nicholson,
Tn
hence
Only members,
{d)
bank
the reserve
of
97
144
i.
hence
a reproductive manner.
147.)
bank
the
short,
in
is
managed
gratuitously (and
therefore economically)
trustworthy
men
of
unworthy men.
order to
membership.
and
qualify
spends
If
the
loan
he
unproductively,
can
be
by the managers of
*'
educative
and
influence
self-help,
and
in
matters of
their
thrift,
association,
{Nicholson,
i.
372.)
life,
and
ECONOMICS OF BRITISH
9^
INDIA.
[CH.
II.
to
"en-
courage
self-help,
thrift,
agriculturists, artisans
The
Societies
divided into
are
three
classes,
central, rural,
of the
raises loans
affiliated
to
on behalf
of the latter,
mand
It
it.
because
it
In a
Rural
Society
members must be agriculturists, and in an Urban Society the same majority are
non-agriculturists.
Each society consists of ten or
more members above the age of 18 years, residing in
the same town or village (or group of villages), or
belonging to the same tribe, class or caste.
The rural societies as a rule work with unlimited
liability and without share capital (except in Madras)
at least four-fifths of the
liability.
members, and
reserve.
a quarter of
dividend.
its profits
to
in
to
form a
must go
set apart
it).
member
A
or
{i.e.,
the
paying
one or more
society shall
to
to
each year
reserve, before
make no
loan except
Money
CH.
II.]
99
to such societies
(i)
sale
by a
(2)
Next
claim
is
crops,
cattle,
to
prior to
that
society's
of
by the
State.
As soon
Societies registers
all the
a society
(free of charge),
it
enjoys
The Co-operative
Societies
as
those
instead of as rural
extended
to
of
of 1904.
unlimited
and urban.
societies
other
Societies are
and
now
limited liability,
than credit
societies;
permission has been given to some societies with unlimited liability, but share capital, to distribute profits
societies.
100
ECONOMICS OF BRITISH
difficulties
INDIA.
[CH.
II.
in
central
or
societies
These
inspectors
staff
(in
supplementing the
for
auditing
as bankers
maintain a
unions
central
radius
the
i.e.,
federamiles.
trained
of
staff
inspecting
official
village societies)
of
and
also act
for
In
Bombay
latter
this
work
from the
is
done by
and banks
[In 19 13 there
in
in all India.]
they receive.
pay 6 to 9
The urban
p. c.
credit
on the deposits
societies,
small
formed
nearly
one-fifth
among
of
the
salary-earners.
amount
of
They hold
working capital
PCH.
The
lOI
PROGRESS OF CO-OPERATION.
II.]
progress of the
Number
Year.
movement
Number
of
be seen from
of
Working
members.
Societies.
capital
in Rs.
4-8 lakhs.
28,600
283
1905
will
807
igo8
1,963
184,700
191
8,177
403,300
335
16,295
762,000
857
1914
The
total
working capital
in 19 14
up :
Rs.
546
lakhs
543
Reserve funds
50
Of
1914,
II
as
many
as
16,016
little
banks a
progress.
In
total.
have continued
number
number of
their
I02
to 1,21,000,
and
[CH.
their
II.
working
p. c.
(igii).
ment
and
their
loans.
the share
The movement
The
is
in rural India.
an extra-
ordinary capacity for united action, and the Co-operative Credit Society
and
in sanitation.
is
A demand
for
The
societies
villagers
contribute
out of their
Committees.
is
is
able to repay,
local
for
societies
many
cases have
arisen
where the
such ceremonies.
In
this
way
village opinion,
CH.
II.
I03
on ceremonial occasions,
is
now
exerting an
opposite
influence.
some
In
have
society.
There
joined
is
made
harmonious work
in
healthier in all
and
{Bengal
relations."
its
1910).
one
in
Report,
of progress engen-
tlie
Pasi and
Chamar
Unao and
societies
Punjab,
the
Benares, several
money-lenders,
In
societies.
his
191
own
attributes
a decrease of 1,100
district last
year (191
1)
Judge of Jullundur
civil
cases
in
that
village banks."
"
The
much
utilised
by the
In
some
begun
ECONOMICS OF BRITISH
i04
[CH.
INDIA.
Their
sanitation.
members have
tion
II.
and village
between
Surprisingly
little is
drawn
[as loan]
un-
for
In
p. 51).
Bengal
it
indebtedness in India."
effect of co-
15 p.
c.
c.
of these societies.
members
of credit societies
or
by borrowing
agriculturist
work more
efficiently.
own
communal
life
instilled."
{Indian
Year-Book for
1917, p. 487).
The
co-operative
in India
I
CH.
PROBLEMS
II.]
assisting at the
work
IO5
CO-OPERATION.
IN
in very large
numbers with-
not
been
attracted
Government
have
declined from
15
p.
at
c.
the
The
India.
in
adequate
relation
question
The
fluid reserve.
a part of the
by a
first
first, is
the maintenance of an
which
second,
is
really
loans issued by
it.
The
third
is,
should
and the
central
having to
raise
it
locally
The removal
of
this
restriction
when most
money
locally.
of
needed,
this
course
is
has
a dearth
its
dangers,
Io6
ECONOMICS OF BRITISH
from
and
far
exercised
to
Indeed,
near.
INDIA.
special
[CH,
care
II.
has to be
dividend,
while enjoying
Credit Act.
To guard
against this
all
Co-operative
evil, the
maximum
by the Registrar
of
Government with
commended
(i)
Sir E.
as follows
Maclagan
by
as President, re-
new
(2)
made
To
encourage
thrift,
amount
to increase the
of local deposits.
(3) Securities for loans should be taken in preference to mortgages on land, because " real credit on a
wholesale scale
is
spirit
of co-operation."
(4)
Primary
societies
which accept
deposits, (in-
by adding to
question
is,
how
ment Paper
is
their
may
working
this reserve to
capital.
[The
be kept, in Govern-
?]
suffi-
CH.
MACLAGAN COMMITTEE.
II.J
IO7
cient to
of each province
(6)
but
it
The
one-third.
criticised as too
[This
amount
lies
idle,
crisis easily.]
first
individuals and
Burma
type,
Guaran-
be formed as intermediaries
CHAPTER III.
THE STATE.
Pax
British
Britannica and
have established
its
India,
suzerainty.
states
under their
Security of
(a)
life
of
the
the
roads,
a regular police.
their
roads,
chiefs
Merchants can
now
travel
far
of
with
population,
made
(d) Increase of
necessary,
CH.
IO9
BENEFITS OF PEACE.
III.]
the cultivator,
(e)
pro-
cost of
Formerly skilled
in the cost of
Our old
moated granges.
villages
mud
had
Muhammadan
tempted
(g)
that India
we can import
teachers in manufacture
come out
is
known
of its
risk
of
that he
destroying
the
is
foreign
and
to
runs the
now
Moreover,
empire,
This ex-
no longer neces-
if it is
has wealth.
able capital
it
man now
(h)
period.
is
tion
Oudh even
In
sary.
houses were
private
rate
of
interest.
to
be
our
much
British
Under
artificers
the
who
cast
forcibly prevented
The most
peace
is
striking
example
to be seen in the
Bombay
Presidency,
it
(1817).
which
for centuries
Population had
no
ECONOMICS OF BIRTISH
INDIA.
[CH.
III.
greatly
jungles,
the country.
ment
province about
of
the
of
years of
the commercial
it
Bombay
most
the
part of India.
and within
fifty
prosperity
industrial
wealth of Bengal,
fertile
districts of
1825,
and
depopulated by Burmese
late
as
1781
These are
The
One
of
piraj:es
and remained so as
now the
richest
his
Bengal Atlas,
Disadvantages of
Pax Britannica
U)
on population,
viz.y
cultivation,
and we have an
is
port of food
affected areas,
to
rendered possible,
famines.
The
can
increase
in adverse
The rapid
alleviate
but
not prevent
population without
of
knowledge
of
the
common
it
any
sanitary
cities),
Lower Bengal
trans-
Thus
CH.
III.]
Nature
turers
restoring
sternly
is
British peace,
by making
it
equilibrium.
the
(2)
manufac-
to
smiths,
etc.,
workmen, such
labourers in
the
as
hereditary trades
Every
Ill
villages
of
up
their
poor landless
or casual wage-earners in
is
to
is
(3)
Foreign capital
and more
the country.
is
in
This
is
partly a
field of
many
ed
some generations) but for their enterAt the same time, however, they have quite
prise.
naturally
forestalled
the native
capitalists
of
the
ECONOMICS OF BRITISH
112
future
[CH.
Ill,
concerns.
INDIA.
for
left
who
capitalist
For
him.
now
is
field, finds
reason,
this
land and
country.
" the
But
future
of
nation
of
is
deeper importance to a
Moreover,
present
at
we
derive
in
the
is
exported in
transport to market
its
it
whatever changes in
its
after being
[i.e.,
[of
origin]
is
in India,
value
its
is
it
raw
many
and
times more
obvious that
is
may
When
state,
occur in future
not
now
actual worth."
more
Hence,
Most
boards in England,
in the lowest
(6)
(c)
send their
CH.
MODERNISATION OF
III.J
annual
profits
India
outside
They, no
dividends.
classes
of
men
business
in
it is
Sir
T.
the
for their
whom
Indians
As
exploit
landowners
they employ.
be paid as sterling
to
doubt,
II3
INDIA.
and
gain,
they benefit
who have
coolies
natural
own
granted
clerks
whom
England,
if
Tata
the profits
of
business
the
What
The
cally
made
noticeable
country
is
feature
of
no longer
this
New
The most
spirit.
India
is
that the
been connected
tion.
market to take
body
of suppliers to
his
goods
to,
field
skill,
a wider
bounds of
8
days of our
ECONOMICS OF BRITISH
114
INDIA.
[CH.
III.
ancestors.
is
opened
Men
ing industries.
are
much
and
greater
on a vaster scale
their rewards
our ancient
leaving his
from the
the
A man
society.
one
minority of
he can
hereditary
can
now
profession
strict toleration
people,
old collectivism.
or
opinion by
creed.
Apart
individualistic
safely be in
defy social
saps
Slavery
the
has
and
a casteless
foundations of our
been
abolished.
It
itself
against status.
will.
CH.
ECONOMIC CHANGES
III.]
though
been
II5
IN INDIA.
merely
its
work
at
destructive.
man,
service of
is
departments of production,
and medical
sanitation
transport,
with verity
for
the
in
custom or convention.
relief.
Contact
it
Hence, in proportion as
of
effects
silently set
the modernisation
of
on
economy,
(i.e.,
manual
labour,
foot.
India are
vague
of corporate
Hence, works
which the
richest
undertake are
banks.
now
banking houses
easily financed
of
by our joint-stock
cost
of
in
the past.
The
influence
of
British
rule
in
increasing the
capital in circulation
of
From
A factor which we
contributes to the
the
latter
same
result, is the
cause our
establishment of
ECONOMICS OF BRITISH
Il6
over India.
which
The
confusion, loss
[CH.
INDIA..
and waste
of
III.
time
result
and variations
of value
among
the
same
class of coins
British
to
Nizam's Dominions.
the
On
the
very great.
The study
The following
(a)
features of
it
among
the retail
The value
of time
practised as a habit.
the European
offices,
is
is
but also
many
Indian employers.
sieves,
wooden
cases
This
and
among
the servants of
furniture,
Evidently
west,
(c)
made
Advertising has
great progress.
Apart
shop-windows (which
the
European firms of
and houses
art,
in the
now
city
The concentration
offers
of
goods.
Hence the rise of a class of wholesale dealers
and importers and of dealers specialising in particular
varieties of goods.
(e)
The
it
rail).
over a radius of a
The mechanism
of
treatise
in
sympathy
with
the
Calcutta
market.
Il8
ECONOMICS OF BRITISH
[Similarly,
with
fish
the
summer
[CH.
INDIA.
Darjiling
capital
is
III.
supplied
Throughout a
of
respect
article
only.
belt of a
Calcutta
this
level,
after
making
men and
The chief
the police.
found in Bri-
The Permanent
Settlement
which occurs in
nearly the whole of Bengal, Bihar, the Benares Division of the U. P.,
of
Madras
The Mahalwari
while
P.,
in
Oudh
ment deals
directly,
but
is
the
who have
little
power over
their tenants.
which prevails in
(3) The Ryotwari Settlement
Bombay, Sind and Madras. The principle of this
system is also applied to Assam and Burma. A few
hilly tracts in Bengal and the coast strip of Orissa
y
settled.
II9
PERMANENT SETTLEMENT.
III.l
and Bihar,
of
and serving as
Hindu period
the
name was
first
given
by the
Muhammadan Government to its agents in the collection of revenue, who had no permanent right to the
But the
land.
far
away from
fact of
the ^evershifting
character
nised
free
them
as proprietors of the
hereditary
subject
to
succession,
soil
sale
and
mortgage, but
(b)
He
pay
the
ECONOMICS OF BRITISH
I20
INDIA.
[CH.
III.
the
rights
and
and
for secu-
respective tenures
for
the zamindars.
left entirely to
and
allowed
to
zamindar.
In
(/)
(e)
tho position
pay a
Government,
the
to
The
of
taluqdars
zamindars
fixed
revenue directly to
of
through a superior
instead
many
petty
payment
II.
of
a fixed revenue.
The
revenue
is
settled for
who
are jointly
head,
called
the
Lambardar^
and separately
whole
village.
signs
the
Their
agreement
among
The
total revenue
the villagers,
ancestral shares
of
the
some
of
is
then apportioned
them retaining
village-lands subject
to
their
the
H.
121
III.]
vised by the
and the
village
maps and
demand
is
The Government
it
in years of famine.
the
groups of villagers,
whether
individuals
these
tenants
subject
to
the
but
or even
cultivated
it
less,
to
the
has
now
been
The
reduced to 50
net
asset
In
p. c.
no
is
taken to
is
net
the
p. c. of
maximum.
The
middlemen.
limit
is
inferior
assets,
or
by
fixed
rate
In
The
fields.
other places,
the
net asset
is
is
sub-
arrived at
the
and a
little
But
all
these
ECONOMICS OF BRITISH
122
calculations are
made
who
Settlement Officer,
the
by the
the
price
of
consider
to
rules
crops,
fields
(where there
there
is
no appeal
to
and the
From
sub-letting).
any rent
his
decision
court.
and
remuneration of village
cesses
the
is
such as the
watchman, and
the
community
the
The
have
dispensaries,
officers,
(c)
soil,
neighbouring
of
In
(6)
is
character of the
rent
of
directed
however,
is,
the
III.
discretion
the
at
entirely
[CH.
INDIA.
of
each
usual term
chief, instead of
village
separately.
is
different
with
The
sum which
him
taluqdars of
in
the
two
Oudh
respects
temporary,
and
differ
(i) the
is
(which
is
collected
as the total
rent), as
well
the Govern-
CH.
ment
123
III.]
as revenue.
is
merely a big
and influence
of the
Bengal zamindar.
The
the
Settlement. In
Ryotwari
the
deals
directly
with
Rvotwari tracts the Government
cultivators and recognises no middleman. Each village
III.
is
and every
carefully surveyed,
cultivator's holding or
plot of land in
Village
tion of
carefully
is
is
some amount
Ryotwari provinces.
of
assessment
is
In
of sub-letting
same
the
even in the
method
the Mahalwari
in
settlement.
The
rights of tenants.
Under
the
Permanent
and conditions
of his holding,
from the
latter
the terms.
But
the
to
take
in
practice,
and
as they liked.
the zamindar's
who
power
of enhancement.
field
Every tenant
regarded as an "occupancy
ECONOMICS OF BRITISH
124
tenant,"
and
INDIA.
[CH.
ill.
as
by a
rise in
he has held
if
same village for twelve years in succeswas enacted to prevent the zamindars from
evading the Act of 1859 by shifting tenants from one
field to another before they had completed 12 years'
any
field in the
sion.
It
field.
position of
some
midway
cultivators, viz.y
gene-
proprietory
rights
(b)
'ryots
at
who have
fixed
full sub-
who
rates',
cannot be ejected nor their rent enhanced (c) occupancy tenants' (formed under the Act of 1859), and
settled ryots' (who have held different fields in
(d)
'
'
the
same
The
last
two
also are
have to be proved
in a
law
may
court.
H.
In
III.]
1 89 1
and
(4)
25
later
courts
on that
The Act
of Eastern Bengal.
any
against
enhancement
is
of
empowered
rent
to fix
by the
what
it
of tenants at eviction
distraint has to
and
distraint
by landlords. The
by the zamindar's
servants),
In
short,
the
ment
of rent,
In
following objects
(1}
To
to
the
enhance-
ment
of rent,
The revenue
officers
rights
To
give
when such
greater
authority
to
the record-of-
126
published.
In
rights has
now
[CU.
III.
fact,
conditions.
of 1907 provides for the production of the entry regarding rent in the record-of-rights in all rent suits, and
down
lays
be presumed
to be
to be correct
it is
proved by evidence
incorrect
variance, with
until
its
reasons
for so doing.
'To
(3)
power
give
to
Government
to distinguish
case
when
be oppressive.
In
by a
ryot being
certificate
revenue
civil court
specially
first
without the
xvi).
Settlement
: (i) An enormous
chores of
officer,
The Permanent
4i
officer instead of
tages
appointed
its
disadvan-
least
incre-
H.
III.]
12/
loss of
crease
ment
since 1793
earned increment.
by the majority
(3)
The unproductive
of zamindars.
use
of
rent
and many
them are
of
absentees.
{Ind.
Emp.,
iv.
231,
advantages :~(i)
of the State
ment
of collection.
of
It
(2) It
to tenants
settlement in
the
(3)
The
zamindars have greatly extended cultivation by bringing large areas of waste-land under tillage, planting
colonies
of
the
vinces,
of
new and
vast
agricultural
pro-
industries."
128
spot,
he
The zamindar
163).
tahsildar,
increased production
the
is
Ill,
on the
is
Government
of
Com.,
VilL
(Maine's
[CH.
entire benefit
But he has
tural
lords.
equip our future zamindars with the knowledge necesthe latter purpose.
sary' for
(4)
is
of India.
(5)
of civilisation
manor
is
an
In
Bengal,
neighbouring villages.
all the
time flock
and Muslim
it
By
supplies
is
are
has generally
which
benefit
Puja
male and female, Hindu
his temple at
of collective
new method
and
amusement they
new sanitary
new kind
of cultivation, or a
"Scarcity
office,
To
measure, a
of crop
it
have.
His
oasis of culture
among
the peasants.
CH.
III.]
29
where there are large zamindars, than in provinces where the settlement has been made with the
heads of village communities, or with each ryot direct."
facility,
(Seton-Karr, 70).
In short, the
threads of village
good
life in
zamindar holds
and
his hands,
his
Where
all the
power
there
for
is
But where the peasants are independent (as in Backerganj), many murders are committed in the villages
[But unless the zamindar
and go unpunished.
resi-
is
dent,
is
Government
the
The zamindars
{Seton-Karr,
famine-relief,
literature
and
art, all
The Permanent
is
the
ment
of Bengal.
The
be
exaggerated
without
a
it,
new
livin.sf
in Calcutta.
130
[CH.
III.
middle
enough
"squireen"
Bengal
Every
class.
just
to
younger
life.
They, therefore,
proverbial
keenness
and
English
aris-
tocracy.
has
Disadvantages
of
temporary
settlement.
(i) The expense and harassment of the present assessment work, which have to be repeated every 20 or 30
years.
(2) Neglect of cultivation on the approach of
sible assets.
As the period
for revision
draws nigh,
minds
the
Wealth
of the population.
is
concealed
many
an
unfair
increase
means
of
and
rental."
{Seton-Karr
is
68).
(3)
The
discouraged, as there
tenant's
expense
Government
in
will
full
and contented
life,
(4)
as
Emp.,
iv.
231).
"The
CH.
to
III.]
must
or
till
therefore
The body
starve.
means
and
...Intermediate
of the nation
every case
in
I3I
of obtaining
independent
classes
are... the
is
great
food.
there
are
slaves of that
master on whose pleasure the means of their subsistence wholly depend.... The tendency of such a state
of
things
to
is
See also
lit t,
it
creates."
^86, 502.)
sion
of
the
it,
and at
the proposal.
demand
of the
by the
the
limitation
of
the
ryot's
State
on certain
in
statutory
definite conditions
price
of
crops,
new
assessment,
in
short
The Viceroy
fully
suggestions of
among which
I '^2
of
the
prospective
yield
[CH.
III.
of the land
The
(2)
principle
of
number
a sudden
to 25 p.
rise.
c.
In
assessment.
may
Bombay
Code
the
12^ p.
c.
on the original
[But in
Punjab, there
(4)
instal-
maximum enhancement
rapidly
limits
be imposed
imposed by annual
not exceeding
ments, each
may
hardship of
is
no such
limit.]
The revenue
collection
of failure
should be more
of
crop.
elastic in future,
years for
bad
years,
and
it is
enough to save
in
good
the population.
CH.
III.]
By
ment
33
of
some other
administrative machinery,
Where a
viz.
detailed surveys
tract
are
and
it
now
an entire
made
for the
many
Bombay a
second time
parts of
simplified,
re-settle
district, (as
(8) In
is
classification of soil
Madras by custom.
consequences of the chief Indian
The economic
The protection of
the
stipulated
neglected,
later legislation.
now
and are
The
first-named
and capital
and always a
134
in
flourishes
under them.
by the zamindars,
levied
Where
it is
III.
[CH.
agriculture
Permanent Settlement.
down
putting
ryot
is
frequent, in the
less
The
same way
as
it is
Where a
is
zamindari system
is
discouraged.
is
cultural
because he
his outlay
the
is
of
the
zamindar,
But the
if
on a large
plots
the
of
scale,
which
is
areas.
The
large industries
may
(See
It IS,
&
I
fC).
think,
essentially
to
class
the mahalwari
villagers called
settled
wrong
Settlement.'^
r
CH.
III.]
Under
the State
this system,
among
rent presupposes,
is
all
The competition
of
ryot
a landowner with
is
of a monopolist.
the advantages
135
mercy
at the
wanting
is
viz.,
the Government,
(i)
of the State-proprietor,
The
and the
must theoretically be
an element
in
Government
lets the
(2)
it.
(3)
The chance
of
enhancement
of the
revenue at every periodical settlement discourages industry and the investment of the ryot's capital in land.
The
ryot,
(4)
their tenants.
and
is left
land
of the
is
to the
" swept
rights of the
and
ment
in
Officer,
is
less
fear of the
in dealing
District
with
his
defensive power.
perty
is
As Burke
says,
"
The
diffused." {Reflections.)
Its
defensive
power
lesser properties in
is
weakened
as
it is
ECONOMICS OF BRITISH INDIA.
136
(5)
[CH.
111.
revenue system
is
and the
sure to be inelastic,
by the
likely to be ruined
strict
ryots are
enforcement of the
remission
of
revenue
is
ment.
On
the
in
impoverished
raise
these
tracts
class,
as
"a
(Gokhale
Speeches,
The
309).
103,
official
helpless
and daily
incapable of education, or
effort to
povi^er in distress."
apologists deny
economic rent or
addition to
Emp.,
in
iv.
the
234.)
The
Ind.
Chapter IX.
many
made
India the
home
entirely
British
industries
alone invested in
The
of
rupees (1909.)
The
have
CH.
FOREIGN CAPITAL.
III.]
137
and much
of the
money sunk by
the
Government on
there
in
the
form of
sterling loans.
impossible.
originated
(2
&
entirely
3)
in
European
taking to both of
these.
tion
and transport
of
originally introduced
by European
into India
capitalists,
or plantations
owned by
exclusively
though
enterprise,
is
entirely
Europeans.
In
the
short,
capital
and
of
the
initiative.
State,
mainly to European
now
Examples
joining in the
work
of
industries
in
Chapter V.
The
and
political
their effect
India
is
in increasing
numbers.
relations of India
on the balance of
and England
trade,
In conse-
('the
said,)
and a strong garrison of British troops, (which numbered 80,581 in 191 1).
The pension
of all these
and
138
[CH.
Eng-
land.
India.
years
III.
of
remitted
is
young ones
European
England
came
back
sent
India
to
to
to
three-
maintaining the
for
there.
soldiers
12,000 w^ere
to
a large part of
amounting
above 13,800
England or
British Africa.
annual
reliefs
number
of
in
India
England
for
the
of
England a large
amount
of
what may be
called
Under
Government rules, offices of the highest position and
salary in our land are filled in England only.
A
candidate has to be
to
draw
fications
full
he
pay.
is
But
"recruited in
if
England"
graduate selected in
to the
only.
England
same chair
[In
he
is
starts
if
for
but
if
distinction
:
an Oxford
an Indian college
he
is
appointed
"
Even
an English status
By
is
I39
III.]
barrister.
It is
not
much law
as a newly-passed
There
vakil.
barrister
at
will
is
least
as
result
of his sojourn in
is,
therefore,
England.*
no indication
it
Charter Act of
the
British rule in
India.
is
of
call to
merit
necessitated
Since
by
infancy of
home
education at
A Rash
Bihari
Ghosh
continues.
or a
barrister
joins
practise
England,
*
driven
live
know an
Every Indian
there
who
wishes to
consistently
lavv^
therefore,
is,
him.
three
hidian barrister
who
years,
and
pay
to
an
Another Indian
barrister^
Oxon
!)
1^0
Each
barrister represents
Rs.
[CH.
at
III.
least
we do not
get
unattainable in India.
of
barrister instead of
the
a vakil, even
know
practising
barristers
the
to
in
bar in England.
the
The
England on
to
sixty
that
latter.
is
enormous.
Indians were
a single province
Nearly
the
we grant
our country
more than
if
less
called
is
relatively
all
sterling
loan of the
Government
came
and
from
Many European companies working and earnmoney in India have their head offices in England,
there.
ing
and
their profits
of dividend.
here.
self-governing
country
like
the
England
for
America
for
in
CH.
INDIA
III.]
nations
buy
can
DEBTOR COUNTRY.
books
English
I4I
very cheaply in
The
is
lier
of these political
result
that India
The
imports.
about 24
and
its
a year.
economic
is
reaches
a permanent
:
{a) India, in the present
industries,
abroad.
and
This
i.e.,
receipts or
now
crores of rupees
state of affairs,
ing
is
parts
The
profit
on agricultural produce
is
smaller
made
generally
manufacture,
imports.
(6)
which
is
Manufactured
articles
much
being
consumer
in
is
the
goods which
with
case
we
import.
whose market
is
(c)
it,
As
the
full
142
cargoes on
their
[CH.
return
amounting
nearly
to
III.
this
(d)
From
the
the
very
The money
(e)
less,
represent-
There
this
is,
Relatively to
therefore,
amount.
European
of
officers,
view
amount
of abstract
no drain and
if
all
the
past,
India
this
for
by
of the drain.
theory,
there
rule.
many
during Mughal
no
this excess
our production by
officers
is
times the
their
all
here,
our
CHAPTER
IV.
CONSUMPTION.
men produce
Consumption
saving).
tive
is
of
and unproductive.
two
kinds, viz.,
called
is
produc-
Unproductive consumption
ed consumption at
production of
is
all,
new wealth
productive activity
but
;
it is
for
and not
the
is
duced,
i.
e.,
really consumption.
satisfying
wealth was
the
when
only
human
it
causes
at
being pro-
still
it
of
last
in
a lower
Spending
is
a transfer of wealth
The
ones.
on productive
rich
man
which
by regulating
classified thus
ECONOMICS OF BRITISH
144
Out
(i)
and
which
namely
We
(But our
Articles
(?.)
barely necessary
extravagance in
in satisfying
limited in amount).
is
drink
food,
in point of time.
first
IV.
satisfy
importance.
[CH.
INDIA.
i.e.,
we
dress, etc.
desire
(3)
lavish
hospitality,
same kind
the
of
and we
like
seasons or holidays.
(4)
work without
We
and
rain,
which
a primitive need.
is
and mental.
and
for their
For
novels,
own
sake,
and these
they
are
felt
as wants.
Such
is
the progressive
new
nature of
state
prepare
ties resulting
the
lised
latter.
man
activities
CH.
I45
IV.J
wants, and also the variety of our methods of satisfying those wants,
i.e.,
we
ties,
{Marshall,
161-164).
i.
The
the
on agriculture.
He
mud
tiled
His wants
straw.
are
whom
way
the
of
foreign
several
a thatched or
lives in
plaited
or
"the most
is
many
classes
Indians using
the
of
our
warm
climate,
Nature to the
minimum
consistent
of comfort
consumption of imported
Thanks to
reduced by
with
extremely limited.
"Why
answer.
they
It
eat
pleasure
rural
is
is
is
the
may
enjoyment
is
itself
enjoy food
all their
decency.
is
articles is
is
It
is
all
for
that
not for
a pilgrimage."
the
by
In
till-
income
for
is
which
10
naturally inelastic).
life
It is
(the
demand
impossible for
ECONOMICS OF BRITISH
146
them
buy any
to
home-made
luxury,
[CH. IV.
INDIA.
or foreign,
when brought
to their doors.
and
Even
buy only
dependent on agriculture
are
two-fifths
if
the
in
rise
the
and
dwellings,
on
and
food
people,
brethren,
spending
same
such a
unlike
rise
to rise to
to
their
the
The
the
classes
life
and
ancestors
life,
social isolation, as
rich
because
in
India,
of
caste-
a higher standard of
would mean
Europe,
themselves.
ponds
as
style
clothing of larger
the
live in the
better
Among many
on
earnings
European country
like
England.
(Ind. Emp.,
iii.
269).
Indian consumptiDn. An
attempt is made below to arrange the articles of
Indian consumption in the order of decreasing demand,
Classification
of
CH.
INDIAN CONSUMPTION.
IV.]
I.
dishes,
Grain,
salt,
cotton-cloth,
I47
sume.
called
lotah
dftdhdh (the
Muslims,
madans
II.
and
among
having a
latter
is
among the
Muham-
spout)
made
usually
It is
the
of brass, the
preferring copper.
in class
I,
as nearly every
or pipe
the
is
symbol of
caste-
band).
is
rapidly
advancing to a place in
this class).
Oil,
and
Madras, fish. Advancing still higher we have a few
metal utensils, {viz., cooking pots, dishes and cups),
the Hindus using brass and the Muhammadans tinned
copper.
Lac bangles for women.
III.
Next come extra articles of apparel such as
coats, umbrellas,
made
of jute), shoes
furniture
tea (in
a more extensive
towns)
ghee,
meat
for
ECONOMICS OF BRITISH
148
Better houses
IV.
ments
luxuries
phones
steel trunks
pujahs
[CH. IV,
like
pilgrimages
INDIA.
cheap gramo-
on
more
showy-
scale
The
V.
no
which
need-
description.
The above
list
requires
fication.
len clothing
is
quali-
But
Upper
India,
is
as
In
by all classes
treasured by the poor
sari.
in
worn
in the plains
new
feet
pair of shoes
tion.
do not put on
socks, except
on ceremonial occasions.
vanity
known
to villagers
wife
is
his
coinage of
silver,
Our country
I49
IV.]
new
fashions in dress.
Rising standard of
life,
As the result of
British
is
is
rise in
most striking
in
Burma.
on
occasions.
towns
now
Our ladies
certainly
is
mainly of gold.
two millions
We
imported, in
more
of umbrellas
were manufactured
here.
The
in-
crease in the
the deluge of
decade ago,
all
illustrate
ECONOMICS OF BRITISH
150
is
INDIA.
[CH. IV,
The
winter.
only a few
Hindu
which however,
have gone out of fashion.
men
could buy,
Bengal, are
now
figures
The import
of tobacco,
from 3f to yi million
The
circulation of
lbs.
have created a
taste for
or
The Indian
villager
abstemious.
He
is
thing,
when he has
eyes.
In rural Bengal,
and the
difficulty of
structures
is
quite
seen
its
owing
ready to adopt a
usefulness with his
timber
new
own
bamboo
STANDARD
IV.l
RISING,
I5I
HOW.
on account of the
superior
towns
in the
all
come universal in
made of leaves.
The standard
these.
of
living
is
People clothe
and daughters
their sons
cularly
in
our
being raised in
in
and
things,
own
selves
Many
selves
ones.
in
know
slippers,
of
grow up
who
The
step.
their
young
goes about in
children
boy
become the
neces-
thus petted,
when
which
passes
away
for
one
childhood.
of one generation
refuse
their forefathers,
pamper
a poor priest
to in their
This process
is
is
ever,
and
thus raised
P2urope
and America,
that, as the
income of a family
ECONOMICS OF BRITISH
152
a smaller percentage of
increases,
INDIA.
[CH. IV.
spent on food,
it is
among
our middle
class,
constantly
rises
amusement
health and
education,
most observ-
is
professional men,
town
artisans
is,
naturally, slight
of poverty from
But
gratification
inclined to do.
the
and conservative
writers
superfluous,
want was
a superfluous
of
it
of
state
seem
little
would be no
life
Every
beast of burden.
if it
new
had been
mained
in
its
primitive
it
Luxury
barbarism.
degenerates into
is
con-
wastefulness,
obtained,
sumer of the
social progress.
The
rise
or
in
other words,
caste
the con-
{Gide, 673).
in our standard of
when
not contribute to
(i)
Thanks
to
The
CH. IV.]
153
igii returned 33 lakhs of professional beggars, or a little over one p. c. of the population. Now
census of
man
that every
himself, he will
have
spend more on
called
upon
less to
to
the
fc
is
of poor
relief
of compulsory taxation.
(2)
pre-
cannot
live
sufficed
himself a
Every
more
Those
two
things,
efficient
who
will
increasingly
difficult
with
us,
as
up,
head
for
the
(4)
The age
it
of a
of
(3)
The
becoming
is
household to
marriage must
European standard
in
As a natural consequence
in
celibacy.
(5)
to
take place.
every
age
of
private
life,
bound
in
are
The
relative
in
our midst
importance
saries) will
be altered, and
many
things valued
by
ECONOMICS OF BRITISH
154
[CH. IV.
INDIA.
new
(6)
their old
needs,
A
when
it
houses,
and
standard of comfort
rise in the
and
elevate their
daily
live
in
life
raise
themselves
before.
We
that
the
in
fortli
style,
greater
in short,
of
when
exertions
and
to
must, however,
case
more sanitary
by the introduction
a blessing only
a more nourishing
in
dress
is
of
take care
many
of
remember
to
like
standard of living
more expensive
life's
is
style,
an improvement in the
enjoyments, their
total expenditure
remaining the
articles of
consumption.
increasing
disappearing
see
tea-
of ghee
more
pri-
Average consumption
in India
and England.
estimates,
and
for several
mere rough
is
altogether wanting.
CH.
IV.]
Statistics,
Statesman
Trade
1,
New
Dictionary of
of India, 191
the
of the
popu-
United Kingclom.
Meat (igo6)
India, 1911.
117
...
lbs.
157 bushels
Coffee
0*67
Cocoa
Tobacco
I "97
Sugar (import)
88
72
J>
Clothing
67-8
>J
Alcoholic liquors
29
lbs.
"02
C cigarettes
5>
2-3
ed
C manufactured 9*5
24.26
gallons
lbs.
12-5 lbs.
lof yds.
gallon
(including nonpotable spirits)
one-fifteenth
3-10 -9
6-47
(1911)
lbs.
one-nineteenth
Imports of merchandise
import-
Expenditure on liquor
Tea
of
1.
^55
14
i6s.
13
5s.
lo^d.
15s.
6d.
lb.
ECONOMICS OF BRITISH
156
Statistics of
(a)
Food
(i) Salt
[CH. IV.
INDIA.
Indian consumption.
articles
was
and 13*4
in
lbs.
1906.
what
In
salt per
191
the
head,
was 72
used in manufacture,
is
In
1914.
lbs.
Sugar
To
sugar
among
It
articles
of
people
vegetarian
food.
is
enters
like
the
only luxury
the
social
dinners,
besides
and
students
in
greatly increased
portation
of
towns.
we can
foreign
1900 to
12J
That
infer
sugar,
its
consumption has
which has
more than
cwt.
in
191
small.
Though no
reliable
statistics
and 18
is
very
are available.
CH.
DRINK STATISTICS.
IV.]
I57
\
*'there is
duces about
million
tons
India
[all]
[raw]
of
now
pro-
cane-sugar."
(Noel Paton.)
lbs.
manufacture a
the
juice
fair
the
of
amount
it
also
sugar from
of unrefined
date-palm, but
We
may
be set
off
Drink
(i)
Tea
my
calculation.
Tea produced
...
imported by sea ..
land
worth Rs. 18 lakhs
say
...
...
...
...
...
...
...
268,854,000 lbs.
6,611,000,,
2,428,000
277>893>ooo
Deduct
Exported by
sea
...
Re-exported by
sea and land
...
260,778,000
...
758,000
261,536,000
Total consumption
in India
...
or '052
16,357,000,
ft.
per head.
ECONOMICS OF BRITISH
158
Liquor
(2)
In
India
there
is
INDIA.
[CH. IV.
one liquor-sliop to
of
the population
is
ten times as
great.
viras
of country
{Ind.
Emp.,
257)
Punjab
...
Burma
Bombay
14^
...
10
,,
...
127
1911.
...
6,144,417 gallons
...
...
4,083,806
..
...
10,092,139
...
...
20,320,362
from
Indian distilleries
Total
lation.
i.e.,
^j
of a
gallon (exactly
spirits,
perfumed
spirits
The habit
and workmen
classes
of
European
lost
and
Bombay
style of
of the Punjab.
among
Among
the upper
drinking.
and
castes
CLOTH CONSUMPTION.
CH. IV.]
(3)
Hemp-drugs
and
opium
Certain
59
numerous
rare in England.
is
was
{Ind.
Emp.,
iv.
244
Hemp-drugs.
Bombay
...
...
U.P.
...
Madras
...
Assam
The import of
weight as
2*3
...
y^
seers
&
Opium.
2'^ seers
...
1-3
...
i'2
,,
i*i
...
8*8
of
261)
,/
The
local
manufacture of cigarettes in Bengal and Bihar (1910) was considered to have been about 3000 millions, or g'^ per head.
(c)
Clothing
In
1911
we
per head.
Imported woollen piecegoods
...
...
2,437*89
.-..
1,02028
,,
home
consumption
...
3,482*17
Deduct re-export of
imported piecegoods,
...
97'5i
Total consumption
by 315
The above
mill, persons
list
...
3,384"66
,,
ECONOMICS OF BRITISH
l6o
woven
not clothing.)
is
we
If
[CH. IV,
which
INDIA.
we
consumption.
IS.
In
{d)
Gold and
gd.
without
treasure
Silver.
taking
account
into
it
was
treasure
was
and
the
on behalf of Government
igii
2S. 5Jci.
6d.,
is.
11,
India
absorbed
importation of
if
we
take
the
our consumption
Gold
Silver
(private) imported
...
;f 27*66 mil.
...
7-95
35"6i
^^2*48
4*42
6'90
...
2871
Other things. The use of umbrellas is extendand though the importation of foreign umbrellas
(e)
ing,
...
manufacture
In
separate umbrellas
we imported
19*6 lakhs of
MISCELLANEOUS GOODS.
IV.]
l6l
umbrella- fittings imported that year produced someso that our total
was
In
lakhs
105
one
70 lakhs,
making
consumption
of
We
head.
this
paper
printed
is
12,189
books
total
in
of
newspapers
millions
from 32
in
unknown number
per
(against
191 3
copies
lb.
of copies
Besides
is
deliver-
parcel.
for
paper
is
very rapidly
and
shoes
are
it.
we imported 33
and
towns of India.
The importation
of
hardware
from
23 V
goo to 1907.
/afe/is
of
1911.
II
Our import
Rupees worth
in
of cigarettes xosq
1902
to
51.
horn
lakhs
in
CHAPTER
V.
PRODUCTION.
economics of a mainly agricultural
country as opposed to those of a mainly manu-
The
facturing country.
An agricultural country, if
fiom the Law of Diminishing Return,
I.
tional
it
is
i.e.,
old, suffers
every addi-
portion of goods.
owing to the
is
fast
proceeding,
inferior,
cropping
the
further."
is
(Gokhale's Speeches, p.
fields
declining
178).
But
Department
is
have reached
manufacturing country,
The
price
of
the
Law
of
raw material
articles.
facturing
is.
country an increase of
Hence, in a manu-
demand
often lowers
AGRICULTURE
CH. v.]
INDUSTRY.
VS.
163
the
On
it
the contrary, in
of
increase
demand
work
by
harder, or eat
sacrificing
{Mill,
p.
or obtain
less,
i.e.,
usual food
118).
The
demand may
soil,
as in Canada, an increase
In agriculture there
on Nature,
e.g.,
fertility
is
much
of soil,
greater dependence
sufficient
rainfall,
is
the case
agriculture
is
far
In
and cheapens
But in an old
to
i.e.,
workmen
ECONOMICS OF BRITISH
164
INDIA.
[CH. \\
grade of work.
higher
and
richer
than
common
who
The
labourers.
various branches of
less
culture
has
enterprising
those
who
The minds
made
little
agriculturists
more or
chief
in
improvements
who have
it.
We
trades
But
new
con-
work
of
men
labourers
in
good
{Marshall^ 737-738).
actually engaged
have
associated a
town
subsidiary to agriculture."
in
less
agricultural
agri-
towards the
drift
But
common
an
The
idyllic
life
of
densest ignorance
DISADVANTAGES OF AGRICULTURE.
v.]
[.
165
industry to another.
plant
is
dustry
is
often
when
entirely lost,
"
in the
abandoned.
6.
agriculture
more
facture, v^rhere
an increase of
i.e.^
means
of
Not so in manubusiness only means that
increase of business in
increase
fields.
raise different
can do.
From
6 and 7
it
In agriculture,
is
less
to be the
efficient
in
(Marshall, p. 743).
is
very
difficult,
workmen
co-operation
p. 738)'.
intelligence
same
in
and industry
Hence,
of the
agriculture
than in manufacture.
66
It is
9.
commonly
[CH. V.
much
correction
and
modification.
First,
if
the
no
better
those
(including
who do
if
Secondly,
than before.
off
employed
money wages
their
it
a loss
the
price
food.
of
Thirdly,
an undiminished crop-
vast majority
from
suffer
labourers
and pasture)
tillage
in
yield
all
of
Lastly,
rents,
if
which
is
of
the
land and
and comforts
as
wealth
is
even
the
landowner's
amount has
new
to be
conditions
same number
of
Rupees as
Also, in proportion
before.
is
is
increased, provided
that
loy
CH. vTj
its
rise in
In prac-
price.
The
producing country.
agricultural country
is,
an
therefore,
long run.
are
the
inflict
and
land,
increase of the
possibly be contributed
consumers.
man
because every
tion
is
possible
is
in
of expansion in the
the
a consumer of
most
by foreign
sure to afflict
is
of
home
some
population,
Over-produc-
it.
world
of the
may
higher price
main portion
is
demand
an almost
infinite
power
collectively.
No
agriculture
can be
productive which
really
is
and
thriving towns
is
the
cities.
next
In
the
available
{List, 127).
it
If
an old
l68
industry
in
is
a backward condition,
[CH. V.
because her
{Mill,
price.
cultivator
120).
the
of
less readily
...A
made
considerable
facturing power of
its
its
the development
own,
infinitely
of
more
beneficial to
a manu-
it
thereby
itself
it
may
and by commercial
crises,
because
it
improvements
its
home]
own manufacturing
industry, while
by
unemployed
will
exchange of
of all kinds".
"A
by accidents
169
INDIAN LABOURERS.
CII. v.]
want
in
of the
first
industries,
is
division of
tants,
and
powers".
of the
[List,
its
inhabi-
productive
Land.
In
India
agriculture
limited
greatly
(b) the
size
by
is
the
main industry
branch production
this
(a)
Owing
India.
of the ryots
to
many
Indeed,
of the holdings.
is
(c)
the
small
the
of
agriculture
the
the
soil
scientific
reached
in
many
places has
its
The food
demand.
Moreover,
in
large
tracts
of
new
the country
which
is
In the
first
chapter
we have
production.
Labour.
ing to
differences
of
race
stamp
is
exceptions,
accord-
subject to
though a
ECONOMICS OF BRITISH
lyo
Our
[CH. V.
INDIA.
however new,
art,
The
peasants are
and
self-reliance.
of
But
in
in the pesti-
and fond
rather languid
Bihar,
have hardly
whose ryots
.of
The
repose.
labourers
Bombay and Upper India arestong and hard-workThough dishonest to strangers in the matter of
ing.
men
our
labourers, very
any
workmen
among
who
the
commonest
All
year.
or
runners,
and gambling
Europe.
(Here drinking
traditions
and not
is
often
Except
of occupation.)
in tasks re-
quiring prolonged rnuscular exertion and concentration of attention, they are very patient
at their accustomed slow rate.
in general
and persevering
re-
liable,
of
work hard,
to
of
idleness
and
supervision,
and
slackness,
and
be trusted to
materials,
and
CH. v.]
17
workmanship of which
They may be called dishonest in the
lacking steadiness and reliability and of not
of
being
fit
be
to
ness,
of
its
supervision
(See
very high.
is
Hence, Indian
themselves.
and dear
inefficient
is
to
left
labour, in spite of
Movison^
182).
a higher scale of
in their
work
life
tions
rise
other na-
This adverse
all of
re-
our artisans.
agriculture of the
factory-hands or miners.
Our most
unskilled
of
who form
They
workmen.
Even
the
originality.
Indian
artisans
we
see
the
wood
same
training.
singularly wanting in
In the sculptures of
are
figure
or
design repeated ad
nauseum.
ECONOMICS OF BRITISH
172
INDIA.
[CH. V.
ease.
Hence the
workmen and
certain
tribes
select
(such
as
the
among
peasantry of the
Ratnagiri District).
the most fertile
their
strength
in
and
drier
Thus
parts.
in
and multiplying
locally.
this lack of
of
Bengal
a suitable
of indentured labourers
Indian production
is
improvement
of
labour
the
is
of
repose.
Skilled
strength
of
the population
shows a lack of
What
reliability
and the
industrial
we
get usually
little of it
and
of conscientious
work-
CH. V.J
LACK OF MANAGERS.
manship which
is
the
despair
175
the
of
managers
of
industries.
children
its
own
good things
but Indian
for
everything."
The long
and above
war,
on board men-of-
been unknown to
us.
but
all of these
The youngmen
and
by our
head
so the
sent forth
have
business
assistants,
to waste
the
gifted
more harmful
is
the
scarcity
of
business
management
one head paralyses work
and
whole concern,
just
as
ECONOMICS OF BRITISH
174
moment
at the
army even
INDIA.
In an
of victory.
business,
[CH. V.
English
a chain of able
is
and a vacant place is quickly filled by promotion. In England a lad enters a business as an
He then
assistant, or even lov^er, as an apprentice.
officers,
rises step
b}?-
step
till
tributed.
is
carried on from
an unbroken succession
and
ripe experience.
seem
to
have a genius
who
managers,
way with a
title
away
in India
their ablest
assistant
for driving
the
business with
his
heart full of
and at
his
made a
partner.
skill
both
efficiency of
is
continues under a
affairs
and the
set
its
at the
necessary capital.
right themselves.
In time,
discover
how
to
come
CH. V.J
Our
men
recent industrial
sudden demand
Experienced
ber,
others),
who with
many
new
of our
failed.
It is
For
this reason
man
success that a
commodern age a
business.
So we have been
gain success.
if it is
manager
to
qualified
by
we can
his experience
Capital.
is
weak.
cal
In
languor have
left
and unwilling
the future
forth
any extraordi-
religions
world and
capital
been
What
India,
and disregard
Hence, there
its joys.
in
left
teach quietism
and
its
is
a great lack of
little
capital
is
Indian
for the
this
want.
is
Usury and to a
ECONOMICS OF BRITISH
176
[CH. V,
INDIA.
Indian capitalists
of
they do-
and well-employed
well-directed
need of India.
is
In proportion as foreign
has
Happily a
for
the
has
better
Indian capital
is
set in
Many
increasing proportions.
daily
joint-stock
many
forming
raised
crores
in
entirely in India.
Steel Co.,
the
aggregate,
has
been
It
now
is
in
London, has
prefer to
invest
their
Public
Debt.
to failure
effective
desire
of
property,
land.
the
public
intelligence, the
(2)
Improvement
of
decay of superstitions.
CH. v.]
kindling
new
duction
of foreign
the
desires in
arts
people.
which
(3)
The
77
intro-
importa-
the
new
In
(Milly p. 117).
for
But there
cultivators,
is
wanting.
is little
India
cause
is
rural
The main
labour.
and
(c)
lies in (a)
new
opening
is
money
know
peasants already
the
introduced
it.
among
Even
them.
only a question of
scientific
its
use,
but are
manure may be
and
to accept
of
is
not
crops
which
He
knowledge.
Turning
to
of articles of a purely
utilitarian
nature
our handi-
manufactured
12
in
factories
on modern
lines
178
(either in India or
and
way
in every
particular,
market.
As
by the hand
and
and
the
are
for
the
hand
them
artistic
is
{Worsley^,.
curio-collectors.
made
interest
in India, they
demand
made by
by native methods.
in
[CH. V.
But an
industry
with such an
artificial life
cannot be expected to
much
The produce
of handicrafts suffers
longer.
two great
defects,
viz.,
(i)
quality.
lack
same standard
quality.
new demand,
neatness,
finish,
from
out-turn cannot be
(2)
and uniformity
the
of
Indian manufacturers
out-turn
the
last
is
is
their inability to
keep to the
of excellence in production.
Increased
This result
is
the
good name
of Indian
manu-
facturers.*
The
(i)
The immense
and
S. E.
Europe]
the spinning
sample."
cost of setting
is
if
much
larger [in
"The
sale of
the Levant
irregular
up,
The
MANUFACTURERS.
in India.
(2)
of
inefficiency
.179
its
Europe.
(3)
is less
manufacturers of
it.
comparatively small.
is
The
and India
the v^orld-market,
is
many
while
it
would
ruin a
India.
and improve
have not
efficient
Indian manufacturers
this spirit,
than
Europe.
their instru-
if
the
in
difficulty of
iii.
280.)
Very few
of
an absence
them employ
of a distributing
travelling agents
agency at
all
there
is
adequate
mumcation
is
(Morison, 183.)
l8o
[CH. V.
Cotton
can look
One
"weaver"
Lancashire
six
after
The wages
of
is
the
latter,
England.
The Indian
English rivals
(a)
the market
for
(6)
is
cheap,,
advantages too
is
(a)
The
dis-
in
England.
In India
(6)
The Indian
-,o
Madras.
worn
in
ing
not
Bengal and
in China.
is
(c)
which
sell
woven now
efficiency
and greater
move-
cost than
EFFICIENCY OF LABOUR.
CH. v.]
Lancashire,
in
(thread) used
is
and
in
many
(d)
cannot
it
Indian labour
if
There
is
a laxity
is
(in the
of half
time
are
Moreover, owing to
strike, the
not
is
cheap.
the workers
of
l8l
when they do
England
intelligent
in such
minimum
strikes
leaders
way
as
are
declared
of
to
benefit
the
labourers with a
The following
efficiency of labour
India. (Indian
figures
in
the
illustrate
mills
of
the comparative
Lancashire and
p. 11).
ECONOMICS OF BRITISH
1 82
[CH. V.
INDIA.
Lanca-
India.
shire.
loo looms
Annual out-turn
operative,
Annual out-turn
4-2
30
4'4
90
7,736
3,700
37,740
14,000
81
13
..
a^/erage
of yarn,
lbs.
per
...
of cloth per
operative,
yds.
Mining.
The
miner employed
and
is
is
England.
human
in
labour).
the
risen
the
Indian
Japan
Agriculture.
it is
taking
in
158 tons.
Agricultural
other countries
is
from 89 tons
labour in India
the
Thus
head having
;
England
place in India,
1913
miner
is
is
is
concerned.
very
But
average yield
is
61
lbs.
In cotton our
SUGAR INDUSTRY.
CH. v.]
Sugar.
cane
4
is
The
in
about
tons
out-turn of
1 83
Cuba, and
Java.
in
acre under
is
and frequent
of the
scientific
application
cultivation,
the
of fertilisers,
rational
on the experience
best
possible
disease".
of
attention
to
new
sugar industry
prevention of cane
the
The
fields.
is
chief
is
planted every
hence the
of
cane in
difficulty of transport-
year in
past years,
Small
factory
is
no chance
should be
of profit in
com-
grown,
most economical.
there
like those
is
establishing central
To
owned
and controlled by the factories, i.e., a sugar manufacturer here must be a cane-grower also.
Unless such
an arrangement is made, great difficulty will be f^lt
in
tories
184
[CH. V.
mills
it
(Cane cannot be stored up to be worked leisurely
must be crushed within 24 hours of being cut, if there
;
is
to be
no
vate sugar-cane in
Attempts to
culti-
4000 acres
viz.,
now
C. P.
steel presses
70
p. c. of the
process
juice.
of boiling
refining
the
latter
(2)
white sugar.
costly
and then
The
direct
cal process,
factories.
and
it
also prevents
50).
Aug. igo8).
letter,
(Sir Ernest
The Times,
in
ly
I,
I
CH. V.J
185
the
in silver
The
Indians.
and
of gold
silver
of
Ibbetson
basis
records,
of
the
India's production
linseed,
price
official
of
cotton,
jute,
rice,
wheat,
tea,
1).
mated
calculation
is
our
agricultural
Mulhall
Rs. 18 a year.
4th
esti-
head of
(Dictionary
ed., p. 631).
I90I
United Kingdom
British India
Pop. in
milHons
National
income
milHons
in
Income
per head
42
231
584
2-5
86
The
Mr. C.
Mr. F.
Money and
Atkinson.
{Morison, 7.)
J.
[CH. V.
on the authority of
Lord Curzon
esti-
of
transition of India
and ^.
by
power manufactures, are due entirely
Foreign capital and enterEuropean initiative.
trial
steam or
to
8s.
prise
electric
new
The
increased.
Our
industrial
even
now mainly
1911, the
foreign
financed by foreign
capital.
In
working exclusively
in India,
crores
of
all
the
in India, (191 2)
joint-
many
of
FOREIGN CAPITAL.
.v.]
87
(C/.
which are also built on European capital.
Howard, ch. v.) But the paid-up capital of joint-stock
companies registered in India doubled between igoa
and T913.
Though Indian
work in increasing
praise
the
capital
is
proportions,
now engaging
we cannot too
in
service
foreigners.
the
highly
of
modern
foreign
capital
how
the
de-
The
industries.
educative
been invaluable.
The
If
Our
modern
capitalists
to distrust
the
and large
Even more
an incredible
beneficial
to
fairy tale.
which native
capital,
how-
many
paper-mills,
capital
is
and
such as cotton-mills,
is
mostly in
88
[CH. V.
European mechanics.
able to hire trained
skill
difficult to
is
capitalists
over-estimate
have
being
in
industrial
of
It
which Indian
the advantage
constant
knowledge,
habits.
The
cheaper than
In
this
latter, therefore,
if
respect
they had to
much
can
after
who
from British
men
in their
own
dominions.
We
owe
and
III,
(The disadvantages
skill
in
India have
railways, post
cinchona plantations to
foreign capital).
Jute
mills,
woollen
mills,
paper
tile factories,
and dockyards
peans.
owned by Euro-
flour-mills, ice-factories,
DISTRIBUTION OF OUR FACTORIES.
CH. v.]
peans
in
factories,
jute
&c.
presses,
the following
aerated- water
by
are now
among them being
gins,
varying proportions,
oil mills,
conducted
industries
machinery
N.B.
No
But
if
we count
loJ-
lakhs in 1912.
presses mostly in C. P.
silk
filatures
U. P. and Punjab
saw
mills
and Bombay
labourers totalled
The
included in
is
P.
in
cotton mills in
jute mills
Bengal
flour
sugar factories in U. P.
and petroleum
refineries in
and presses
Burma
mills,
in
rice mills,
;
iron
and
and Bombay.
total
paid-up capital of
operation in India.
tures of
are
about 10
invested
in
To
crores.
cotton,
this
74-1
crores
of
Rupees in
and
ECONOMICS OF BRITISH INDIA.
I go
presses,
The
tramways.
[CH. V.
in private railways
cent,
capital invested
in
1901
to
1910.
mainly
shares
are
Indians.
not necessarily
but
and
their
exclusively
by
The following
invested
capital
owned
and
coal companies
formation
is
show the
tables
in
India,
all
different
classes
of
as far as in-
(1913),
available.
A.
Industries, etc.
1913
Railways
No. of
Capital
employed.
persons
Rs.
employed.
495 craves
6|-
lakhs
(reg. in Ind,),
Jute mills
7
11-6
2' 16
lakhs
Goldmines
Woollen mills
Paper mills
Breweries
28^
cvoves Rs.
lakhs S3-^
71*3
21x3
4053
4600
= 61
60 mil.
= 80
1328
lakhs Rs.
lbs.
lakhs Rs.
^E v.]
OUR FACTORIES
B.
IN
I9I3.
191
No. of
with
persons
debenture,
employed.
Rs.
1913
Coal mines
7*6 cvoves
"45 lakhs
Annual produc'
tion, etc.
= 57
Petroleum
refineries
Tea plantations
Banks :
12 Exchange
with
offices
28 cvoves -\-
banks
outside
567
6-6 lakhs
cvoves
= li
cvoves Rs.
307 mil.
lbs.
...
(including)
reserve.)
India.
9,189
. .
Presidency and 15
joint-stock
i6'68 crores.
...
banks
ocated in India,
Rice-husking mills
Saw and
...
timber mills,.
4i
55 lakhs.
Flour mills
72 lakhs.
Sugar
1*4 cvoves.
Iron
factories
...
11,121
...
...
7,870
?
...
22,199
...
17,622
38,500 cwt.
ECONOMICS OF BRITISH INDIA.
192
C.
1913
Capital
No. of
with
persons
debenture.
employed.
Cotton mills
21 crores.
Ice factories
29 lakhs.
Cotton gins
&
3 croves
lakh.
<
Jute presses
34.034
Printing presses
27,886
mechanical
244,002
presses.
>
worked
[CH. V.
article of ordinary
In al
consump-
home produc
in
the
manufacture of
as regards sugar
refining,
oil
pressing,
silk
iron
GROWTH OF COTTON
v.]
'^H. V
etc
we
goods formed 26
p. c. of
In 1914 manufactured
from
was 77
worth
35^ crores
The import
p. c.
I93
MILLS.
our
to
total
of machinery rose
1908, and
in 1901 to 7 crores in
7f
We
crores worth.
shall
now examine
the condi-
made
progress
Twentieth
Century
A.
in millions
No. of looms
Yarn produced,
Woven
in million lbs.
goods, in million
lbs.
1901
1911
1915
197
253
261
6-5
6-6
41,800
86,200
108,000
560
625
722
116
266
352
16
...
21
i8i
48
49
...
...
...
of
...
^ as many
59 in
as
85
Ahmadabad.
three-fourths
of
Since
ECONOMICS OF BRITISH
194
decline
production of yarn
the
in
recovery in
191
But
1).
gone on increasing
first fifteen
home
the
it
the
[CH.
(with a
production
V.
slight
of cloth
has
We
consume at
only 10 p.
of
INDIA.
c.
total
We
being exported.
import only 6
p.
c.
In 1915
The production
estimated in
of
igo6 at
woven
cloth are
want
The
chiefedefects of hand-
of bleaching
and
of finishing
strength
cloth.
hand are
of little
use
today,
and
way and by
it is
not wise to
competition."
Ruskins and
many
(O'Conor.)
few
old-fashioned leaders in
hand-loom industry
of ordinary clothing
pseudoIndia are
CH.
v.]
I95
On
1879 to
times,
igo8,
number
of looms
tively,
there
was a
igoi
that of persons
eight
to
1908.
32-
times respec-
of
depression.
B.
1901
No. of spindles,
No. of looms,
in thousands...
in thousands
1911
1915
36
61
70
331
69^)
812
16
35
39
b'gb
H75
...
cvores of Rs.
C Woollen Mills.
*
No. of mills
No. of spindles
No. of looms
lbs.
In
the
1911
22,900
...
I^roduction, in million
1901
6
40,700
594
...
3'9
4*7
1151
10
44'5
271
1915
demand ;
less
than
their production in
ECONOMICS OF BRITISH
196
191 1 fetched 51
INDIA.
[CH. V.
we imported
Much hand-
340 lakhs
loom weaving
is
the
coarse blankets,
carpets,
and
sheets.
The Indian
rugs,
of shawls or
warm
cloth-
D.Paper
Mills.
191
1901
No. of mills
Production, in
Capital
(as
1915
...
...
11
wiz7/zo Z6s.
...
467
59'4
68
73
50
49*5
far
as
known), in
lakhs of Rs.
and
of that
the imports
mounted
paper
is
steadily
but in 19 10
home
demand
to
on the
The
increase,
public
made from
commodity
especially,
cheap
wood-pulp.
to a lack of
In
this
demand but
is
to a lack of supply."
is
due not
(Kale.)
forced to be a rag-dealer,.
OUR COAL PRODUCTION.
CH. v.]
with his
own
and
I97
is
a separate industry,
Out
of loo tons
left
wood-pulp there
is
is
no such
loss
and the
more uniform.
E.
Coal-mining.
1901
igii
1915
151,000
employed
...
95,000
116,000
...
6'6
i2'7i
17
...
0*23
0*29
o'i32
...
0*52
0*87
o'8
No.
of labourers
"
ings
the
coal,
some
the
of
lighter
much work
as one Englishman.
whereas the
and
was
ECONOMICS OF BRITISH
igS
[CH. V.
INDIA.
Petroleum.
F.
1901
1911
1915
50
214
282
84.8
47
...
India's
consumed
in India
consumption
...
Kerosene
of
27
nearly
oil
On
the average
oils
But
in
our
191 5,
Rangoon and
in
oil
are
wax.
There
is
candles,
and
paraffin
19 15
Gold mining.
1901
Output, in
0.^.
Value, in m/7.
...
1911
1915
...
532,303
583,567
616,728
...
1-93
2-23
2*37
On
Tea -plantation.
lion lbs.
lbs.
1901
1911
1915
495,000
574,000
636,200
191-3
268-6
372
179-6
260-7
340
CH. v.]
In
p.
c.
199
Technical
education
education concerns
itself
effects.
its
Technical
The old and humbler ideal of technical eduwas to impart manual dexterity and an elementary knowledge of machinery. But an intelligent
lad can quickly learn these things by actual work
trades.
cation
(as in
attend schools.
sense
Technical education in
command
it
its
should
higher
(a)
give
but
in the
this
higher branch
the
Germans
have
made
by reason
among
of
their
association
the
diffusion
of
scientific
knowledge
practical manufacturers.
with
ECONOMICS OF BRITISH
200
INDIA.
[CH. V.
No
and
their
in
not be direct.
of efficiency
becomes more
when educated
labourer
great, as the
is
intelligent, trustworthy,
and inquisitive.
now
left
undeveloped and so
of
proper education.
want
With
the nation,
for
low-born
us a
in
life
to
lost
{MarshalU 288
292.)
The
is
who
is
pupil.
the
the
from
in
his master,
age and
and
skill,
this is increased
till
This
among
the
in
old days
and
quickly
still
prevails
come
town
to his
as
is
in
own house
for
his
It is
the same
and he can
daily
meals.
But the indigenous master's teaching merely reproduces his old-fashioned knowledge and does not tend
TECHNICAL SCHOOLS
CH. v.]
towards progress.
WHY
20I
FAILED.
as
craftsman
and
(Ind.
quickly deteriorating.
Atkinson
in
Emp.,
iv.
436, Major
30.)
hut
skill,
it
(6)
.and
the
(c)
ledge and
new
tools, as
But the
modern European methods
ancestors.
their
3iot
a new tool
-superior
efficiency
difficulty
introducing
of
unconquerable.
.adopt
aptitude,
new know-
if it is
is
ready to
and proof
fairly cheap
is
of its
among
tailors,
The
is
chief
obstacle
to India's industrial
development
The intellectual
-castes
i:hat
bare
which
i:he
minimum
artistic
artistic
skill
of
education
without
be developed.
Hence,
literary
cannot
or mechanical
genius born
among them
ECONOMICS OF BRITISH
202
runs
to
waste.
Sir
INDIA.
[CH. V.
T.
in
country^
this
men
The beginnings
are unpractical."
technical
of
The
instructors.
from some
(a)
Lack
of qualified
young -men
who have a
and no experience
of trade
masters
who
fresh
institution,,
to scienti-
workmen-
or pure
to-
We
have home-staying
instincts,
instead
mechanical
skill of the
common
artisans,
adopted a
CII.
v.]
203,
gentleman
class
who
The few
pupils of the
came
ing mechanics at
lead a
life
all.
manual
of
toil.
technical education
to
who have no
intention either
offer
to
their
lessons
chiefly to
to
in
instruction
industry.
schools can
in
of
devoting
science
and
themselves
art as applied
the
in
compelled
the
instead
pupils,
first
technical
fruitful,
we
training
alertness.
of habits
of
{Atkinson).
attention,
The
result
lower technical
The
fact
is
ECONOMICS OF BRITISH
204
first,
[CH. V.
Such
men
INDIA.
by the existing
felt
factories.
Many
public leaders
Now,
it is
is
the
if
no demand
will
not
in the labour
form of their
European
schools with
crafts in technical
modern
tools,
i:ive
tools,
to
the
straps,
he probably could do
because
it
was
He
up copper
does not do
it".
at
Rs.
i-io
it
seer,
seer,
technical schools
of
<ie^c/ii sells
for
of joining
it.
ed by stipends. But
now
that
many modem
industries
a ready market
and our technical
IMPROVED CASTE SCHOOLS.
CH. v.]
European
animates
In
society.
there are
the
*'five
spirit of
20y
self-improvement which
workmen
is
wanting
Manchester School of
in
our
Technology
who
represent
to
attend
own
free will,
and at
their
But
in India, there
and they
The
future
The most
successful plan
technical schools,
viz.,
is
(i)
to
have three
Lower
classes
of
or caste-schools for
crafts
and
(2)
higher order,
inspectors,
and
tion.
A.
Lower Technical
Schools.
few youngmen
ECONOMICS OF BRITISH
206
caste,
according
but
modem
to
[CH. V.
INDIA.
They
methods.
its
Such
perfectly
lower
may
schools
who
attract
not be
a subordinate position.
literary
discarded,
The
care
tools
of
be made the
read
hand
The
use
should
all
may
mechanics trained
but highly
the
to
in arithmetic,
geometry.
of
a man who
these
In
Indian
to
<ind
"x\
may flourish,
man and a member
a teacher's knowledge
into
one caste or
him
entirely
a local
is
throw
to
distinctive industry
pupils.
In large
in
Indian
illiterate
"It is
efficient).
workmen can
be given to
{e.g.^
take
a limited amount of
new
is
no use
as
they
it
in their daily
CH. v.]
207
among
genius or inventiveness
They should be taught to give up their primitive tools and mediaeval habits, and to learn
modern methods, orderly habits, and the use of improved tools, which would double their efficiency
without making them literate. (See Wallace's paper in
schools.
ment and
Emp.,
Ind.
i66
i8o.
Major Atkinson,
435
iv.
439).
humbler
type.
of
this
their
institutions
and
also in rail-
workshops under
here the
can
men
learn
Of
Schools
Secondary or
we have some
Technical Institute of
already,
Colleges.
viz.,
Bombay and
successful in turning
ECONOMICS OF BRITISH INDIA.
208
overseers for
whom
there
is
useful,
[CH. V.
if
They
men
scientific
is
no opening at present
for Indians
with such
concerned.
is
is
The
one of the
and has
C.
Polytechnic
Colleges.
The
highest stage
is
and
fully
It is
they are to
if
teaching imparted.
the
modern
type] require
manipulative
skill.
profit
by
the
advanced
is
Atkinson's report.
CH. v.]
209
the
of our industries
workmen'
the
(Atkinson).
Many
must be corrected.
common
One
delusion
of
of authority
in
position
managing
up a
or taking
an industrial concern.
No
The
methodical
habits,
energy,
alertness
business
manager
of character,
of
strength
work
instruction
in
in
the school of
Even technical
would be premature
a factory or business.
highest grade
of the
at present, as there
is
no opening
for
Indians of the
high grade or "University" type of technical educaemployers preferring Europeans for the higher
tion,
posts
and
on the ground of
reliable.
their being
more practical
man who
has
less
91 2
Lt.
labour
about
trained Indians.
that, in
Col. Atkinson
the
to be
ECONOMICS OF BRITISH
2IO
in charge of delicate
is
care
constant
cation to work,
the
state
average Indian
in
most cases
will
not work
that
institutions
technical
[CH. V.
machinery,
unreliable... [Employers]
students from
INDIA.
work and
are not,
it
know
was found
everything."
mostly unwilling to
work-
known
is
It is
utterly useless to
in
a technical
an employer of labour
He must in all
and work up gradually
in time... Students are totally unfit for any position of
authority on leaving their [technical] institute, and
till
must
first
and learn
in
many
men who on
leaving
CH. v.]
their
PRACTICAL TRAINING
211
IN MINING.
institutions
their
men
to a future "
on a large
when Indian
capital
comes forward
by educa-
when
possible
in
professional subject
these institutions
tical
ous,
it
is
"as
work is common,
and the efficiency
possible
subject".
to
Preferably
staff.
much
have a
In a large
specialist in
Further, no certificate
or
institution
each important
diploma should
two
years'
practical
apprenticeship in
some works,
as
can never be
mine
as
managers.
Such
officers
are
212
[CH. V.
mine labourers
knowledge in the
intelligent
theoretical
ed by
The
science,
in
succeeds
students
of
strict
in
method
a mine
{Holland).
country,
and undesirable mixing together of the sexesmarked the factory system in England before Peel's
Nor has there been, except occasionally,
reforms.
tion,
as
of
as;
CH. v.]
88 1.
21
often
enough
to break
down
their health.
mines are not deep enough, and our miners are averse
to remaining
underground long.
the
(Cunningham^
sion of 1842.
ii.
ch. 21).
perly
move on
following lines
the
(a) Restricting
(6)
(c)
Providing sani-
mill-hands,
&c.
(d)
by duly authorised
The Indian
1
persons.
amended
in
less
mechanical power
and
coffee
women was
i-est
is
used."
The period
limited to
amounting
to
11
1 hours,
of
hours,
(b)
employment
for
with intervals of
ECONOMICS OF BRITISH
214
INDIA.
[CH. V.
labour
matters in mills.
In
191
the following
new
provisions
among
others
(i)
employed
textile factories
for
In
textile factories
In
textile
remain 7 a day.]
factories
mechanical or
electrical
is
in force.]
no woman or child is
employed before 5-30 a.m. or after 7 p.m.
[Women's working hours remain eleven as before.]
In
to be
(v)
No
child shall be
CH. v.]
certificate of
fitness
215
from a surgeon
to such certificate.
(vi)
factories shall
in
in
Women
lighting,
(Chap.
made
III.
of the Act.)
CHAPTER VI.
DISTRIBUTION.
Rent as affected by custom,
custom
is
industry.
stronger in
"The conditions
The influence
even in
agriculture
of
of
agriculture
competition."
the
case
to a
much
tector of the
barrier
weak
Among
strongest
lays
is
is
and with
which tyranny
respect."
action of free
"Custom
beneficial results.
full
forced in
Custom is a
some degree to
down
expedient to relax
the
it
in
practice
it
The payments made by the cultivator to the landowner are, in all societies except the most modern
and advanced ones, determined by the usage of the
It is only in modern times and in very
advanced countries, that the conditions of the occupancy of land have been an affair of competition.
country.
In India
fulfils
to
retain
commonly
his
holding
The
ryot
I^K
CUSTOMARY RENTS.
VI.]
vi.l
was
not, until
21
re-
a lease
of
Even under
arbitrary
the rent
rulers
itself
was not
increased
district
different
items!)
(In
to
make
that
the
that the
fact
could
he
-customary rent
not,
itself.
India an effective
The
nised.
abwabs consisted of
The
thirty- three
had
landlord
manner, proves
for
in
the ryot to
of
British
till
the land
was recog-
from
making
or at least a matter of
sway
thus the
of
And
agreement.
{Mill,
148-149.)
In most
backward countries
all rights to
property
ship of land
firm,
of
is
vested not in an
zamindar)
is
the
member (namely
sleeping
the
ryot)
on
individual but in a
(viz.,
the
partner,
is
the
State or the
and
another
working partner.
ECONOMICS OF BRITISH
2l8
[CH. VI.
INDIA.
him
all,
to
but
is
In
pay."
not
(unwritten)
the
is
so
far
of the
unalterable
as
is
{Marshall^
tolls,
and
to
another.
these
The nominal
"custom rounded
protected
the
his
part to
off
the
rent
increased or decreased
The moral
ryot.
on
labour services,
to
still
certain
presents,
protested against
make a sudden
dues.
In
any attempt
or violent increase in
Mughal
history
we
the
ryots,
and
of the
2ig
VI.]
them.
provincial
governors
by a
later
Emperor.
The
petuate them.
had a
such cesses
Indeed,
per-
to
only
the
zamindar
is
but
term,
his
i.e.,
payment
to
the
simply
partners of a firm.
How custom
in its
those
In
ryot pays
the
soil.
no great change
profits
two
{Marshall, 727-730).
is
broken.
Custom
first
is
more
sight.
plastic
Customs
Even
in
who
is
tacitly
and uncons-
many
case
his real
rent
decreases.
in
In
and
220
pes'tilence
[CH. VI.
tracts,
and have
to
who had
to offer very
favourable terms
come from a
induce cultivators to
among
distance
and
(In this
At every such epoch the continuity of the former custom, as regards rent, was deliberately broken for the
{Marshall^ 73o)-
ryot's benefit.
From an
now-a-days deliberately
With
benefit.
tension
of
the
set aside
increase
of
generally
become a matter
is
being
and
demand
the
ment
ryots
ment.
The
and
in the case of
Govern-
by the settlement
when not
landlord,
the
legisla-
paragraph of
this chapter.
action
of
legislation.
three
forces, viz.^
on the inter-
rule
custom
the
of
ryots
221
CH. VI.]
often ver>-
is
The
Emp.,
(Ind,
out,
iii.
Maclagan points
from a basis of
"starts
454),
custom and seeks to confine the influence of competiwithin reasonable limits" by maintaining the
tion
therefore
Indian
still,
^Custom
to
of
rents.''
determining
in
rent
the
of
and
building-sites
of
Rent
lordism.
the
India
in
State
Over
the
is
as
affected
by
State-land-
sole landlord,
culti-
is
is
among
impossible,
monopolist landlord
The
rent
is
assessed on the
ment
{viz.,
economic
and
whole
culti-
tract
in-
rent,
field
(2)
it
may
ECONOMICS OF BRITISH INDIA.
222
proper
{i.e.,
[CH. VI.
may
profits
of
3.
two
The
enhancement of
undue
is
and
being
rent
lot,
chie's
its officers
no safeguard against
Mr. Machono-
inquiry
put to
officers'
head of
the Government.
At
first
the English
land-revenue 90 p.
gradually
its
about 50
p.
no
*
c.
[There
Saharanpur rule
'
is
however,
been
CH.
VI.]
expressly repudiated in
down
of the
should be
less)
left
remaining 50
little
more or a
historically speaking,
is,
p. c.
little
to
223
In such cases
a relinquishment
Government
to the
the
land-
iii.
is
448.)
In
the
temporarily settled
parts
of
the
India,
Irish
it up to
what they will
itself what they can
The revenue
{Mill, 199J.
afford to pay.
is
adjusted
place.
Thus
as between
But
in the
tricts
of equal
fertility... its
different districts
same
between
rent.
is
little
is
method
two
dis-
of adjustment as
which actually
is
earned,
and
rents to
that which
ECONOMICS OF BRITISH
224
INDIA.
of
[CH. VI.
normal
ability."
(Marshal^ 730.)
was
in the C. P. 4 p.
c.
Punjab 7
Deccan 7
p.
c,
p. c.
Guzrat 20
p. c.
Madras 10
p. c.
(including water-rates.)
iv.
are
somewhat
conjectural,
actual
gross produce
in a particular year,
As
for the
but often
Punjab
in
is
p. c. of the gross
adding
livestock, firewood^
belonging to villages,
assessment
is
"the
present
land-revenue
Rent in
India
as
affected
Zamindary Settlement. In
by Permanent
CH. VI.]
parts
of
power
India
of
the
the
extracting
in the case
certain
of
225
economic
full
rent,
of privileged
classes
the
except
tenants.
his
is
many
respects.
The
ed by competition.
rule
common
have explained
(Mi/Z, 197.)
But rack-
we
before.
The income
27
to a neighbour-
the
of
zamindars increased
about
Permanent Settlement.
made
was
Government left to them only 10
the economic rent at the time. But now, owing
("1793)
p. c. of
When
that settlement
the
and
rise
in
the
the ryots
is
amount
226
[CH. VI.
The money
land.
rents
price
the
zamindars
is
he was in
not more
1793
taxed
severely
surveyed and he
has
the
rise
crops.
of
lost
the
is
now
more
than
strictly
chance of making
groves and
fish
ponds in
his
un assessed.
On
the
Laws
practically
priating any
ment
loses
the
in
is
law
enjoyed
it is
extremely
make out a
courts.
by the
difficult
Where
and
Rent
profit of
full
and
there
prietors
are
various grades of
intermediary pro-
who
pays
CH. VI.]
227
who
Rent in India as affected by land-tenure legisand rent laws. Most of the old families
with whom the Permanent Settlement was made,
lation
soon afterwards
their
lost
fixed date.
Law
Sale
auction,
utmost
profit
Many
of
lessly
in
out of their
sympathy
of
to
make
the
to
their
landlords,
so that even in
full
enough
else
harvest.
The zamindar
left
to
them
just
away
in
be cleared.
payment
Still
of arrears
and ryotwari
tracts.
How the laws of 1859, ^^^5 ^^^ 1907 have safeguarded the ryot's rights and protected him from
arbitrary
enhancement
of
rent,
on pages 123-126.
ECONOMICS OF BRITISH
228
on the
soil.
the
to
the
pressure
India, the
rents
In
INDIA.
[CH. VI.
of population
maximum
point,
(6)
has
and
enhanced
(a)
fostered
in-
tensive
vating units.
petty
North Bihar
proprietor,"
population
the effect
similar
in
*'
the
Muzaffarpur
country of the
the
density
of
districts
of
Bihar,
peasant's holding
is less
the Punjab
Madras 8
is
it
is
average size of
the
acres
and
acres.
rents,
accomowing to (a)
manuring and
provement
of the
means
of transport,
the
selection of seeds,
In India the
first
two
home consumer.
our population in the 19th
century has been followed by a tremendous rise in the
price of food and a great increase of money-rents,
Hence the increase
of
CH.
VI.]
though theoretically
prices are
An
''the
by themselves capable
relatively slight."
(P/ersow,
229
is
126).
i.
increase of population
of increasing rents
is
ed by a proportionate increase
of rent.
In the ryot-
revenue by 31
p.
c.
less
much lower
an acre
only.
rate,
total cultivated
area
fell
{Hunter.)
ECONOMICS OF BRITISH
23C'
settled parts
Bengal
Bihar
[CH. VI.
cultivated acre
of land revenue.
(I9I2)
Permanently
INDIA.
of cash rents.
Rs.
As.
Rs.
As.
& Orissa
Benares Divn.
Temporarily settled parts
U. P. (A{?ra)
13
Oudh
J5
Punjab
"
Madras (inch
irrig.)
Sind
Bombay
C. P.
9
TO
Berar
Assam
I r
Lower Burma
...
13
Upper Burma
...
13
(Ind. limp.,
iii-
In the
revenue represents
The
453)
incidence
less
of land
Re.
1-4
in
1913,
CH. VI.]
23
districts
&8p.
24 Perganas
Rajshahi
13
...
15
usually
Europe he
(Dm,462)
India the
v^orks
usually
is
man working
a hired
employer.
as
wage -earners
of
wages
who occupy
in Europe.
in
an
in India,
same position
Payment
among
agricultural
Usually a farm-labourer
India.
in
the
for
(Morisojiy 4.)
in
labourers
16
In
...
9
lO
gets
portion
piece of cloth
or
He
grain.
of
a small
gift
the
free
meals.
Village
occasionally gets a
In
too.
wage
is
some cases
paid in addition
and domestic
artisans
"By
far the
most important
agricultural
India]
is
monly
practised,
either
class of
Payment
Emp.^
(Ind.
in
iii.
labour [in
kind
is
com-
ECONOMICS OF BRITISH
232
INDIA.
[CH. VI.
The
ment.
regularity
of
employment
also
varies
and employment
greatly,
is
practically
But
191 2, p. 177.)
like the Punjab,
is
in
rapidly
developing provinces
wages are rapidly displacing other kinds of payment for labour. An interesting wages survey carried
tion
in
49 p. c. of these
cash rates with supplementary allowances
kind in 48
p.
in
p.
c.
only.
The
of the
portance
of
agriculture
density of population.
agriculture
is
dense
is
perous (as in
the population
fertile
in Central
wages
and
so for generations.
lation
prevail.
(Ind.
Emp.,
iii.
464).
In the British
works,
LABOUR SHORTAGE.
CH. VI.]
233
demand
for labour
and with
it
the
wages
of certain classes.
In Bihar
wages are
the
demand has
century.
than before,
(b)
our
new
mills, plantations
and
over
mines,
all
1.
to
level
prices."
No., p. 112.)
47th
want of reapers.
Recent rise in real wages. Mr.
Datta, a very able and experienced
the
fields for
Krishna Lai
officer
of the
ECONOMICS OF BRITISH
34
He
connected subjects.
of
wages published
and Wages
"A
in
points out
how
[CH. VI.
the statistics
the
in
INDIA.
syce or horse-keeper is
taken as representative of
A common
unimportant.
mason,
and one
though
rate of
their
The group,
wages
is
is
very
and
carpenter
of 'skilled labourers'
remuneration
is
'unskilled labour',
is
represented by only
No
and urban
many
in
(Datta, p. i8.)
that
would
fluctuations,
into 20
serve
as
"homogeneous
studied
statis-
of
the
a reliable index
apart,
as
it
Each
circles.
has
of these circles
practically
its
parts
the
same
and may be
3-8).
wages
He
of each
together a variety of
as
"skilled
average
:H.
RECENT RISE
VI.]
"This
;>eriod".
is
unseasonal rainfall.
As the
(P. 14).
of his very
result
nquiries, he
comes
detailed
and accurate
Wage-earners
A.
)f
235
iffected
jr
WAGES.
IN
of all
classes
and
in all parts
period
servants
in
wage-earners
the
viz.,
jute
employed
rise
in
domestic
are
cities
and
'circles"
ndustries,
with the
a few
in
in
certain
mills of
kvorks
[ndia
as
nills of
rise in their
real
employed
highest rise
khand, moderate
in
(i)
the
in
General
in
in E.
Bengal,
Village
artisans,
in
13 p.
c. in
(iv)
W.
the
only 6 p.
Agricultural labourers
Punjab, E. U.
E.
in
esp.
;
P.,
c.
rise of
W.
P.,
Madras.
above 50
p. c.
only
Madras.
pur
Punjab, U.
in
ECONOMICS OF BRITISH
236
(v)
very
[CH. VI
INDIA.
in th(
cities^ esp.
Madras anc
little in
Assam.
City artisans, esp. in the Punjab, U. P. anc
(vi)
C. P.
very
little in
The
B.
real
Gujrat, Madras
wages
and Calcutta.
servants have
domestic
of
01
Assam.
On
C.
the real
wages
While othei
and unskilled) have
of industrial workers.
rise in their
wages,
increase
in
wages
rise of prices bj
little rise ir
in
industries
rise
liigher prices.
Among
by 43
p.
c.
during these
p. c.
in
1910.
been 48
in
p. c. in
Calcutta, 30 p.
c.
In railway
P.,
C. P., Bihar
c.
in C. P.,
and
1900-
wages has
with a
fall
all
real
wages
W.
Punjab,
increase.
U.
in
been stationary,
CH.
VI.]
237
decline.
much
higher
wages
have
remained
practically
stationary
p. c.
the
higher than
ECONOMICS OF BRITISH
>38
INDIA.
the
in italics.
1895
1900
1905
1910
1912
105
102
119
113
W2
727
106
104
126
121
]f3
135
Ws
106
103
123
118
142
119
165
737
181
real.
105
122
777
]fs
163
129
174
128
nom.
real.
105
100
115
707
126
103
141
777
14b
707
nom.
102
real.
97
108
99
"9J
136
108
i3
707
102
107
124
real.
776'
143
113
157
127
177
126
nom.
102
real.
98
119
772
128
104
149
124
73J
132
133
171
747
222
169
250
7?
103
102
116
110
128
105
140
770
146
770
106
108
116
100
106
102
709
70J
707
General average of
our for India,
all lab-
nom.
real.
nom.
Rural labour,
real.
I^rge
nom.
cities
Industries, 11 classes,
Railways,
Bihar
E.
Punjab
nom.
real.
real.
Bombay
Bengal mines,
Chota Nagpur mines
166
171
753
167
767
98
101
112
111
730
121
123
204
202
224
207
CHANGES
CH. VI.]
Movements
of
IN
MONEY WAGES.
nominal wages.
In
]'j
Northern
Mutiny.
by 39
of a syce
p. c,
mason carpenter
rise of
The
15 p.
2 to 3 p.
c.
in
470.)
Since
most
places.
In the
c.
in
Madras, 7
in
c.
c, of
an artisan
{i.e.,
Bengal, 65 p.
p.
or blacksmith) by 47 p. c, (against a
in
p. c.
39
by 32
an increase
Assam, 50
p. c. in
p,
in the
c.
{Ind.
Emp.,
rise of
in
Punjab,
c.
of 47 p.
iii.
of
469-
wages
in
of unskilled agricultural
ploughmen
also
twenty years.
practically
doubled
in
the
same
p. 118.)
factories^ the
30
"
240
men,
whom may
all of
safely be said to
their
[CH. VI.
have increased
by taking to mill
p. c.
the shoals of
occupation in
Bombay
Wages
period,
had begun
Since then in
year 1892.
been
or
little
no
and
rise,
ranging from 20 to 40
p.
many
c.
to
rise
wages
of
and
in
the
chief obstacle
low standard
much
accept
to
wages
the engineering
The
is
by the
in others increase of
in the factories
after
higher
Hence the
of getting
difficulty
marked
collieries,
and
supply of
factories,
in
in
wages
in
many
sufficient
employment.
rise
occupations; prices
is
not a consequence
High
prices
do not always
CH.
VI.]
operations
tural
24
food
and famine
not accompanied by a
is
is
frequently
1898, p. 363.)
wages
subsistence
riot
of
wages of
wages offered
rise in the
and accepted
"In times
But where a
for
{Famine Com.
rise of prices is
accom-
because,
owing
to the
many
small
decreases
cultivators
who
rise,
in ordinary years
had
supplement
to
their
longer necessary to
do so
their
find it
no
latter fact
{Ind.
Emp.y
has
iii.
469.)
of calamity
effects
(2) In
way
resist
the
who supplement
the profits
of
Their wage
produce.
is
at
ordinary prices.
16
of
agricultural
of
of
when food
grains
ECONOMICS OF BRITISH
242
power
resisting
Bihar
the
in
a famine
CH. VI.
than formerly.
[But
now
INDIA.
their
real
wages
191 2
being
The resources
of the
(3)
27
peasantry in the Madras Deccan, the
in
Bombay Deccan,
many
with
the
resources
this
exceptions,
cultivating
classes
and power
in"
the C. P. (4)
In the U. P.
of
but
labouring classes.
classes
largely protected
for all
India
prices,
there
by
was
irrigation.
"Of
late
off,
as
The
agriculture
owing
years,
to
their
rule,
The skilled
number 96
artisans,
lakhs],
classes,
as
famine.
resisting
excepting the
weavers
[who
classes,
also risen.
high
and
was
general conclusion
(Report,
pp. 361-
Bombay
factory
CH. VI.]
labour,
for
viz., (i)
and
workers,
the
(2)
who
wages
in arrears
housing of the
residuum of mill-hands,
evil
243
get irregular
no em-
or
(Royal
11. ,
The condition
rise
of
prices
Commission on
1893.)
since
1905,
Punjab, the C.
decline in
W.
P.,
wages
tural labour in
is
or
Labour,
Ahmadabad,
shortage of agricul-
the U. P.,
Bombay, and
W. Bengal
industries.
Even
in
19 10,
in
the
supply
demand
all
for
labour
over
India.
^'Wages show no sign of returning to the level customary a few years ago, but are still tending to rise"
(U.
P.).
"Customary
rates have given place to comand the [Punjab] labourers move freely
more remunerative employment." {Moral
petition wages,
in search of
<&
is
ECONOMICS OF BRITISH
244
INDIA.
[CH. VI.
Before
many
same province.
same place were
The annual
very wide.
all
level prices
About i860
account of
there
began a great
rise in prices
on
country
after the
activity,
and
(3)
war in America.
If we start from the year 1875 and take the prices
ruling between 1871 and 1875 as our standard and
rose
fell
by 25
p. c. in
1876-80,
rose
by 21
p. c. in 1886-90,
rose
by 35
by 64
p. c. in 1891-95,
rose
p. c. in
1896-1900,
CH.
FOOD GRAINS
VI.]
WHY DEARER.
by 37
by 91
p. c. in
igoi-1905,
rose
p. c. in
1906-10,
rose
by 93
p. c. in
1911-14.
rose
245
Thus
tained since.
out India.
except rice
grain
was not
1900
rise
was probably
and
The
strong Indian
demand
to
in
for
rice
These circumstances
known
point, (the
increase of price.
246
still
further in 1910
autumn crops
mount,
this
rainfall,
movement being
demand.
export
191
in northern
from defective
[CH. VI.
suffered
began to
of rice
accelerated by a strong
and Wages,
{Prices
the
In
191 2.)
ed.
and
of
grain
in
19 14,
after
September.
with a sharp
RICE
After
fall in
191
the
19 16.
its
production has
(2)
the high
its
being contracted
(3)
is
spreading to
many
80
In normal years,
p. c.
Burma can
(4) the
races of India
grain.
It is
in India as
2 p. c. of the rice
which
when
it
regularly from
will
have
Burma and
to
obtain supplies of
other countries.
It
it
should
WHEAT EXPORT.
INDIAN
CH. VI.j
247
The demand
The
to
cultivation of
seasons India
is
WHEAT
demand
meet a strong
in
In normal
c.
of its
wheat
Burma
"
for export.
send wheat to
vis.,
us,
which can
are
very distant.
is
in
insufficient.
to
Europe
is
of
from variations in the out-turn of those foreign countries which normally supply Europe, and not from the
"The European decondition of the Indian crop.
mand
therefore,
on the price
"
The
of Indian
price of
wheat."
wheat
in India has
been rising in
ECONOMICS OF BRITISH
248
[CH. VI.
INDIA.
The
demand
internal
for
wheat
is
replacing
is
India.
The
by
is
governed
is
now more
itself,
as India
Jute
is
its
price in the
in India.
in
different
because
when
jute,
and
vice
dear, the
rice
than
demand
world's
under
years according to
for
it
(Datta, 121-123.)
The
price
of
hides
and
skins
in
India
is
solely
is
supplying them at an
from 100
There
in
is
FOOD
&
NON-FOOD CROPS.
Area
Area
Export
British
under
under
of rice
India
rice
jute
249
Area
under
Area
under
Export
wheat
cotton
wheat
of
mil. acres mil. acres mil. cwt. mil. acres mil. acres mil. cwt.
1901
70
2-2
34
i8-6
10-3
7*3
1902
71.6
2'I
47'4
i9"6
ii'i
10-3
1903
69-6
2-5
45
23-6
11-9
25*9
1904
73'5
2-9
49'4
23-5
13
43
1905
73'4
3'i
43
22-4
13
187
1906
73*5
3*5
387
25'i
137
16
1907
75'9
3'9
38-2
i8-4
13-9
176
1908
72-8
2-85
30-2
21-2
12*9
2*1
1909
787
2*75
39'2
227
13-1
21
1910
78-5
2*93
48
24-4
14-4
25'3
1911
76-6
3*1
52-4
25
i4'5
27-2
1912
787
2*97
55'2
23-8
14-1
33'2
1913
75*4
2-9
49
22*6
15-8
24
1914
1915
76-1
...
3'35
31-2
32
24"5
2-37
273
30
17*9
13
<
ECONOMICS OF BRITISH
!5o
coin
<M
en
Tf Tj-tOlO
C^
t>.u-)
lOvO
roco
rh rh
-t-
vO -^u-> Tf
00
en
INDIA.
[CH. VI.
I>H
cnmcn
en
01
00
en
01
en
Tt-HH
Tl-
en
UO
U-)
01
01
00
01
01
01
01
en
M
O
COCO ThTh
^
^
v)
lOOO
in
to
IT) u-)
en
vo
Tt-ThThTh
01
COM H.
Th ^in
en
u->
8^
00 00
rn en en
en
en
c>i 01
vO 00
en
en
cx)
en
01
01
CO vO
00
en
i-t
01
UOOO
CO
to 01
en en
en
en
01
01
0<
01
-0
-^
l-l
01
01
01
en CO
t}-
t^c
CI
c<
00
CO
in
w cnm
01
c^
^oi
in
C^vD
en
0<
01
0*
vO c^
l-l
M
(
l.= o
M
en CO
'-^
rn
en
en
*o<
*en
01
*M
01
01
a,
t/5
^.
(11
p,
pC.y o o
"
00
t-
Tt-
Th r^
^00 Vo
r-
v'
il^^-^
00
^fOTh
^ ThUO
0> -^
00 en en
.cC
-S^
ft;
--i
^ 2
o3
tJ
2.
.
03
03
bX3
<
cud.*
PQ
DfScJ
It
ou
251
of
articles
sumed
India or
conin
ex-
ported.
1901
96
116
157
1902
86
"3
141
1903
88
103
126
1904
93
104
117
1905
96
116
147
1906
105
139
179
1907
116
145
180
1908
106
151
231
1909
99
133
195
1910
109
127
168
1911
113
136
161
1912
117
145
189
1913
117
154
199
1914
114
160
222
1915
Taking
the
the
ECONOMICS OF BRITISH INDIA.
252
[CH. VI.
following proportion
Cereal
food Sugar.
grains.
Cotton
manu- Metals
factures.
Hides
Building
materials
and
skins.
General
average
of 13
groups.
I89I
99
100
96
98
99
95
98
1892
no
98
95
100
99
96
103
1894
95
lOI
102
104
102
109
100
1897
148
lOI
98
105
109
109
121
1900
134
104
108
137
116
115
122
1904
97
96
121
113
125
141
106
1908
168
106
121
121
136
150
143
19II
126
109
145
119
146
159
134
1912
143
III
^37
128
149
172
141
"The
steadily
The
throughout the
largest
increase
whole
period,
1890- 191 2.
RANGE OF PRICE INCREASE.
CH. VI.]
years"
(i.e.,
253
1905-12).
(ij/^:.,
years,
for five
commodities taken
The
8p.
1895-99
...
1900-04
...
12
1905-09
...
31
1910-12
...
36
c.
India during
But
908.
shown no tendency
to
in
and raw
jute 58 p.
c.
hides 65
p.
c, raw cotton
The
increase
upwards
in
in
Karachi,
prices
c.
S.
N & W.
Madras,
is
38
p. c. {Datta, 29-47).
Mr.
causes,
viz.^
world-factors
two
this
sets
ECpNOMICS OF BRITISH
254
India.
The
world-factors
of gold,
(ii)
development of
are,
INDIA.
(i)
in
increased supply
armaments
[CH. VI.
increase
{iv)
and
European countries
of
in
consequent
e.^.,
by i"9
and jute together by 34 p. c, and the
food-grains from India increased by 21 p. c.
export of
during
1900-1911.
Deficient
(c)
unseasonable
or
rainfall,
1908,
effect of
declining in fertility
owing
soil
productivity in
to a level at which
Datta, 68-73.]
up
[Mr.
Datta
to uninterrupted tillage,
attains
years, but in 5
it
great.
to
its
maximum
more years
declines
Inferiority of the
new
lands taken
for cultivation.
(2)
outside
greatly increased
world.
CH.
VI.]
classes
increased
extent.
in
the
255
more
its
the
with
it
the
demand
liberal
Owing
to
of the country,
for internal
consumption.
com-
itself, (6)
(i.e.,
credit in India,
circulating
cumulative.)
of the
facilities
and
medium.
In
18
the
years
before the
closing
was
5 crores, leaving
to the currency.
crores
crores.
The
currency notes)
increase in busi-
256
[CH. VI.
In the world-markets,
to be permanent in India.
" prices are almost sure to continue to rise in the next
annum."
(P. 135).
p.c.
per
The above
Mr. K.
by
ed
necessary to reproduce
my own
words
in this edition,
which
give
new
illustrations.
and
lands,
i.e. J
by bad
seasons.
In rural Bengal
and Bihar
this land-
filled
ploughed.
soils
has diminished
food supply
is
and wheat.
cost.
(especially in Bihar
At the
and Chota
home consumption,
silver
The
in
1893
artificially
CH.
INFLATED CURRENCY,
VI.]
above uncoined
WHY
257
silver.
tempted to come
This
of the coinage.
is
the
year
1840,
these rupees in
were hoarded
ly
we
still
went
of
for
fact
many
This
all.
3.
silver for
making ornaments,
after
To
1893
its effect
is
an addition to
Owing
am
increased of late.
much
market during
Competition
this
in raising prices.
these
inclined to
it,
ment
But now
is
thirds
I.
of rupees
among
have greatly
the
new
firms
ECONOMICS OF BRITISH
258
men
professional
money
in
too)
now have a
hands.
their
now make
them
in
it
[CH. VI.
INDIA.
greater quantity
of
how
surprising
little
ment
replacing hoarding,
is
industrialism, capital
is
in quicker circulation
than
its
volume.
An immense amount
of
and
Indian
com-
There
is
The standard
of
comfort
The
old instinct of
good things
of
life.
by an ascetic
a love of the
the home.
body or
.the sanitation of
WAGES
CH. VI.]
&
PRICES INTERACT.
259
which
capital
circulation
first,
demand
through increased
of wages, coupled
of the wage-earners,
where custom
produced a
still
influences
by the
news
increase of
of
appealed to the
their
The
wages
and
own wages
3.
rise of
and inland
wages to some
In smaller towns
too.
"internal drainage"
of
often
The
railways.
great
lines
are
mere
arteries,
order to
make a
short cut.
But
in the last
lo or
15
man may
There
duce
left
is
no isolated nook
left where
Hence the general rise of
nowhere is the surplus pro-
live cheaply.
;
Potatoes
rice
from Patna.
in far-off
of
1905,
There
is
ECONOMICS OF BRITISH
260
now a
INDIA.
communication
and
[CH. VI.
and
loss
of
The economic
prices of Indian
who
those classes
classes
effects of
only
if
the
the produce,
To
degree.
prices
effect
must be an
may be
evil
in
the
lesser
community high
It
is
beneficial
is,
in themselves
difficult
to
see
how
high prices
classes,
as
is
asserted in the
p.
leads,
no doubt,
to
a larger
prices
countries
had
also, the
26
CH. VI.]
have been
(a)
balance of
here.
in the
it
This would
a debtor country
hope of securing
like
ours,
(b)
The gold
in
India
The Indian
(c)
in
much
of production
cost
less
from
would have
cost
of
us.
risen
living,
till
x'Vll
effects
with world-prices,
but
we
evils.
How different classes in India have been affected by high prices. The
are
(a)
Landoivners
classes that
have benefited
(except
where,
(c)
The
labouring classes
wages having
tracts).
The
price
of
risen
the cost
shown
above].
The only exceptions to such improvement
are domestic servants in large cities and other urban
areas in a few circles and wage-earners in certain
of living, [through non-agricultural causes,
as
ECONOMICS OF BRITISH INDIA.
262
Bombay
mills of
works
VL
and
in S. India
The
[CH.
classes that
E. Punjab.
Permanent
who cannot
settlement,
or quickly,
securities.
(ii)
(Hi)
Holders of
Producers
increase
who cannot
in
the
cost
charge higher
of production.
salaries,
(vi)
or allowances,
industries
(such
huskers)
who
products
and
(viii)
{vii)
as
are unable to
therefore
cannot
raise
their
prices.
who
living.
from the
sale
of
their surplus
they buy.
price
But
in
W. and
S.
of
fire-
the
commodities
wood
Bengal,
&c.) which
as
well as
CH. VI.]
263
now
they are
U.
N.
Punjab,
P.,
after
worse
off
W.
F.
In the
and
Province
Sind,
good
lesser extent.
deal.
In Berar
in
improved
and C.
1900.
P.
change
this
for
diffusion
culture,
the
development of the
resources
community
with much
as a
less of
whole.
of
wealth
profits of agri-
India has
the
now
of
part
the
of
to part
CHAPTER
VII.
PROFITS.
Profits of manufacture.
Profits
include
three
elements
(a) interest
on
capital,
(6)
(c)
wages
Where
business
neuy)y
is
of superintendence.
the capital
and the
difference
is
is
between the
the
paid to
interest
gross profit
and petty
manufactures, the labourer often works on his own
account, i.e., he supplies the requisite labour and
In India, especially
capital
But
and
also
in large tows,
in
the hai^icrafts
rise
of the British
of articles
large
to
the
manufactured to
stores
of
sucli
purchased
craftsmen,
in the
form
collected
order,
These
still,
in
business.
Few were
the
men
wlio
2^5
CH. VII.]
maintained
factories,
own
under their
employed labourers
paying them salaries by the
directly
i.e.,
roofs,
day.
In British India
we have a
of
vast development
But in very
by the manufacborrowed or raised by
few of them
turer himself
is
most often
in
it is
a joint-stock company.
In
He
often gets a
commis-
The
efficiency of
the class of
an industry
men who
differs
according to
the entrepreneurs,
are
their
and
in studying the
These
demand
of
qualities
far-oE
markets.
{Morison, p.
5.)
old.
was
the
things,
modern India
in
the entrepreneur
works on borrowed
capital, or
is
the
is
more
But as he usually
managing agent
than
if
his
undertaking.
risked
in
is
the
morality and
on the part
of
ECONOMICS OF BRITISH
266
many an
INDIA.
[CH. VII.
will be
It
quence of their
The
losses.
much
higher in
moaey
invest their
in manufacture.
The
evil
ag-
is
and
manufacture
In
the
and land
competes with
went
profits usually
of the
it
modern
to the
same
party.
But
in
most
people
the
are taken
wages
of
interest
by the
capitalists or
managers who
in
find
and the
entrepreneurs
or
we
share-holders
superintendence by the
risk
among
the share-holders
usury.
Hence
manufactures
have
received
* The insurance of the plant and premises against fire cannot cover the real risks of the business, which have to be borne
by the capitaHsts.
:h. vii.]
omparatively
little
267
encouragement among
us,
while
The
profits of the
middleman
as agricultural
money
but
also
in the
acts
middleman
His loan
in grain.
is
selling
profit
and
where
its
the
price in
export
keen,
this
week
of
Our improvident
being over.
of
learnt
to
months
difference
the harvest
disburden them-
next harvest.
few
years.
The
ryots
of the
Punjab have
they refused to
sell
"The
greater competition
profits
of the
In 19 10
their
way.
many
trade.
Happily a change
last
ryots
surplus produce
their
possible time
the
it
on
bazar,
is
afterwards
selves
interest,
is
of grain at harvest
is
rural
to the peasants,
it
among
of
the
rail-
traders has
middleman,
it
is
much
268
ECONOMICS OF BRITISH
to bring his
own produce
INDIA.
[CH. VI
it
at a price fixe
less
repayment
fixed in
is
two
es
is
advance money
(such
vessels,
in
trade profit.
(or
raw
The Bania
Sometimes
silk
stuff,
rarely financ
wholesale dealer
as manufacturers
&c.),
of
cloth,
and take
payment.
interest,
tht
harvests,
any manufacture.
men
tim<
pure interest.
stored
is
shoes,
meta
class
enjoy a clea
conditional upon
th'
case with
the
mon
is tht
despatching
it
oi
H.
VII.]
nbarkation.
risk,
as they are
Detracted
'alcutta,
little
269
Bombay, Rangoon
irice
[1
juH:e
suffer loss,
money
riie
is
to the producers
Mania's risk,
speculate
as happens in
brokers.
Hence
Where they
safely pay.
he case of
and know
make
also
command
vast resources.
It
The}-,
due to a
rise
it
when
number of petty
the intending
exporters.
Be-
producers.
:ompeting
some extent)
If,
however,
their
own
we had
and
to
by
ECONOMICS OF BRITISH
270
INDIA.
[CH. VI]
critic of this
Probably
this
state of
already
exporting firms
who
among
{Wilson, p. 19.)
"The
profit-
greater competition
the middleman,
of the
market
CHAPTER VIII.
EXCHANGE.
The development
In the
first
era,
South
and beryls
a very extensive
with
Rome
also
mainly
(or the
and
through Egypt.
great value
of
articles
in small bulk,
which "held
Pliny calls
silks,
it),
some amount
in
the
last
exchange gold,
and
iron
Europe a
In the
Pliny,
to
little less
for
as medicines,
cotton fabrics,
and
She took
swords.
silver,
fine
first
century A. D.,
amount of Roman
mind that Pliny's
gold coins.
But we must
bear in
exchange
for
the
Eastern trade in
those
days.
as described in Classical
Natural History,
Romans under
xii.
Literature,
18 (41) and
102-135,
vi. 26,
Pliny's
Merivale's
ECONOMICS OF BRITISH
-^7-
INDIA.
[CH. VIII.
For nearly three hundred years after tlie establishment of European commercial houses here in the i6th
India continued to export manufactures
century,
In the middle of the 17th century
mainly.
she
sup-
large
and
brocades,
especially
car-
saltpetre
sugar,
&c.,)
lac,
tobacco,
(the
the
famous
of Gol-
Even the
tity).
konda.
We
steel
employed
in
cloth
ch.
12
Storia
do Mogor,
ii.
418).
tr.
by
Ball,
nineteenth century.
cesses in
tion
Improvements
middle of the
in industrial pro-
there
The opening
of the trunk
and made
manufactures to reach
far-off
it
now
cheaply
CH.
VIII.]
273
of foreign manufactures.
About 1885 the tide just
to turn
thanks to the jute and cotton mills,
our export of manufactures has begun to increase, as
also our import of raw materials, at a progressive rate.
began
Imports Exports
Annual average
Rs.
crores
Rs.
crores
Excess
of our
exports
over our
imports.
crores
ending
1844
...
972
1373
1854
...
H'05
18-75
47
56-61
11-82
16-95
1874
...
4479
>i
1884
...
57'54
74*49
19-4
1894
...
83-26
1 02 -66
y,
1904
...
1057
130-96
25-26
I9IO
...
146-51
173-15
26-64
i73'47
217-09
43-62
only
1910
"
1911
i97'52
238-37
40-85
1912
228-46
25685
28-39
"
1913
..
23475
256*09
21-34
1914
166-74
187-46
20*72
"
1915
149-46
207-71
58-25
18
ECONOMICS OF BRITISH
274
INDIA.
[CH. VIII.
we have a
which
foreign trade
by
value
land, the
is
...
Gold and
silver
...
Total
...
191*31 crores
43*44
Rs.
of.
23475
was imported by
Government and the remainder by private persons.
The chief items making up our imports of private
out of which
merchandise were
Crores of Rs.
1911
1912
1913
Cotton goods
49-56
6o-8
66"29
Metals
14-2
15-49
22
comprising
Copper
2-68
and steel
Machinery and mill-work
Railway materials and stores
Hardware & cutlery ...
Instruments and apparatus
Iron
10
4-36
2-37
11-47
5-85
4-11
16
8-26
10
4*43
6.4
3-12
3-41
3-94
J "3
1-48
1-82
Woollen goods
Silk (raw
& manufd.)
Apparel
Boots
&
shoes
3*4
3-05
3-85
371
478
4*37
1*54
r6i
171
o*55
0-66
079
CH.
INDIA S IMPORTS.
VIII.j
275
Crores of Rs.
1912
1911
Railway materials
Articles of food
Sugar
1913
2*54
(Govt.)
and drink.
...
11-93
14-27
i4'95
1*93
2*34
2-47
1-65
1-82
1-87
173
Provisions
Liquors
.,.
Spices
...
'54
1-63
Salt
...
0-84
0-85
0-87
0-66
0-69
0-75
4-42
4*4
2*59
Tobacco
Oils
Other things
Glass-ware
& earthenware
& stationery
2*09
2*3
Paper, paste-board
172
2-28
Books
0-45
0-42
0-49
2*3
2*26
2'4
...
& colours
Chemicals & medicines
Dyes
2-i8
2-19
Matches
0-87
0-98
0-89
Coal
0-51
ri6
ro6
0-89
-08
1-07
...
Of the
total
foreign
that reached
fourths
consisted
sugar
we
took, only 9 p.
us from foreign
of
kerosene.
c.
Of the mineral
countries
three-
(in value)
...
...
37
Sugar
Mineral
oils
Railway materials
2-5
p. c.
ECONOMICS OF BRITISH
276
INDIA.
[CH. VIII,
Foreign
Gold and
...
...
re-exported
silver
...
...
4*68
...
7*08
Total
256*12
The
all.
chief items
merchandise were
of private
Crores of Rs.
1911
1912
I913,
Raw materials
Cotton
29-4
28-33
41
Jute
22-5
27
30-82
256
26*9
22*7
Hides (raw)
I3'9
11-76
11-72
Wool
2-58
2-63
2'5
0-45
0*41
0*24
Rice
29
32.55
26-6
Wheat
1414
18-77
14-38
8-26
8-98
4-16
Seeds
(for oil)
...
Silk (raw)
Articles of food
and drink
...
Tea
12-94 13-29
Coffee
1*34
1-56
1-37
0-47
o-6i
Provisions
ro8
0-48
0-54
171
1-13
077
28-2
Fruits
and vegetables
14*97
'53
Manufactures
Jute goods
Cotton goods
Oils
...
16
22-8
977
12-2
12*12
I '59
0.85
0-98
CH.
INDIA S EXPORTS.
VIII.]
277
Crores of Rs.
1911
1912
1913
Lac
2-1
1-96
Indigo
0'37
0-22
0*2I
13*08
3*42
Other things
Opium
'22
075
0-88
0*83
Metals
1-64
077
0-64
Coal
Manures
077
0-88
o'69
'16
0*96
o'94
Of our
Raw
...
and unmanufactured
materials
articles
formed
Articles of food
(in
value)
50-1
and drink
26-5
Indian manufactures
Raw cotton
22-4
17
Rice
II
Jute
12-5
Tea
Hides and skins
6
...
...
...
47
p.c
ECONOMICS OF BRITISH
278
Our
[CH. VIII
INDIA.
(19I3)
Percentage
of our
Percentage
of our
Percentages
of our
imports.
exports.
total trade.
64
23
40
Germany
10
United States
2-6
6-2
China
2'3
17
2-6
9-2
6-4
15
4-8
2-3
3-8
Java
5'8
0-8
2-9
Austro- Hungary
23
3'3
Straits Settlements
1*9
2-8
2*4
England
...
...
Japan
France
. .
Belgium
..
The
years 191
dise
1-
During
the
five
(both Government
the
cvoves
worth),
is
or in other words
we now
of the countvy^
CH.
VIII.]
goods of
this
we
value which
279
The
This
is
is
i.
as has been
iii.
the
I.
{i.e.,
annuities
on iVn^atJow
capital,
...
13*67
crores
ECONOMICS OF BRITISH
28o
INDIA.
[CH. VIII.
Rs.
2.
8*4 crores
Military
4*52
Civil
3-88
England
in
Army
and
irrigation) held
...
...
England
expenses in
Payments
Debt
(see p. 1^8)
3"22
...
2*24
Exchequer
the British
to
...
India
i'37
0*46
Transport of troops
Other charges
Payments
0'206
...
warships
for
0*209
Military
and marine
Civil, P.
W. D.,
2*25
...
1*42^
telegraph
iph,
stationery &c.
...
Civil expenditure in
>
0*82^
England
0*65
... 37 lakhs
Post and telegraph connections
with India
...
8f lakhs
departments in
India, &c....
...
g\ lakhs
Total
...
30*46 crores,
From
about 63
and
5),
the above
it
p. c. of the
represent a
Home
Charges
payment
for
{viz.^
which
items
i,
we have
REASON OF HOME CHARGES.
CH. VIII.]
281
and English-made
factured
in
stores
India,
(Even a
buys
in
free
replaced by things
The
else).
our
manu-
anywhere
all
impossible.
stores
if
same
articles,
and in
had
quality, cannot be
crease
of cost.
we add
the military
total.
But,
so
any
sacrifice of quality
or
in-
p. c. (or, if
weapons
home
defence,
efficient
the
British
or positions of
troops
are
necessary for
Home
heavy burden.
we must
It is,
and
ECONOMICS OF BRITISH
282
w^s
army
the
of
INDIA.
[CH. VIII.
an adult unit
to
soldiers
of
cost
was
half a
(Cd.
crove of rupees.
The
civil
3 '88 crorcs.
Political
by
the
servants
by the children
of the soil.
As
for the
salary
our total
Home
Economic
It,
effects
1*2 p. c. of
the
of
of their
Home
Charges.
component elements as
effect of the
Home
Charges
now
croves of rupees
worth of goods
807
have
and Gokhale's
Speeches,
CH.
VIII.]
East India
of the
Home
Home
283
That part
Charges which
buying out
spent in
is
a means-
is
and cannot be
interest
on our sterling
Similarly, the
called a drain.
debt is the inevitable price of the money which we reof
the nationalisation
railways,
of
when
it
debt
is
held in India.
will cease
all
our public
suffer
any
through
loss
by the depreciation
Europe.
on
interest
currency
out 44
is
with a
their debts
of manufactures than
stuffs.
of her
in
p. c.
India
How
does,
p. c. in
food
ch. iv).
Every
in
of India.
To avoid
the Secretary
of
India
to
this
State
in
to
Council
sells
in
London
ECONOMICS OF BRITISH
284
[CH. VIII.
INDIA.
Government
him
to
treasuries in
in
bills
and
India,
Home
bills to that
raises the
sells
balance need-
land,
bills
re-
penses in England.
In such cases he
draws
bills
for
paid in London,
price,
the
Reserve.
Thus
fill
up the gap in
Secretary of State
the
is
the
and
afterwards trans-
is
India.
millions,
by loan
Home
Charges,
in England.)
less
on Jan.
20,
1913, held
14^ millions
Home
Lord Lamington,
that
the
in
Secretary
and
Charges
a speech
of
State
CH.
VIII.]
requirements, as
in India.
(C/.
The system
by means
of
grain,
their
it
Howard, Ch.
of India's
III.)
payment
a long chain
jute,
285
the
or cotton
to
England operates
Indian peasants
sell
to exporters in order to
who
money
only at the two ends of the chain say that every year
send out of our country food-stuffs and raw mate-
we
rials
w^hich
is
cvoves,
is
the price
of
spent in England
debt had
and
if
only
that a
all
our pub-
in India
;*I77
...
millions 265*6
...
145 "6
411*2
Railway debt
...
..
Irrigation debt
...
...
.-5c)
333
ECONOMICS OF BRITISH
286
INDIA.
[CH. VIII.
un-
is
and misleading.
or
companies
amount advanced
which
is
set
i.e.,
to railway
that portion
by productive
amount (not the
off
It
commercial
return.
are not
is
depre-
The
result
curious.
public works,
the
capital
of
decrease
to
Debt,"
i.e.,
paid
off,
system of classification
is
to
cause a
while
it
is
represented as
and
by the use
CH.
VIII.]
The
287
Muhammadan
Before
transactions.
and
villagers
citizens
of
The
silver
much
and
less
Tanka was
it,
all large
coined, though to a
the
time after
life.
Silver
was
coined by Altamsh,
first
Shah,
grains)
it
gradually became
The
of Rupee.
ratio
between
made
Calculations were
in rupees,
retained
influence,
it
was ordered
to be displaced
Muhammadan
till
by the E.
Southern
I.
1818,
when
Company's
silver coinage.
In
Company
tried to establish
rupees.
Its
But the
new mohurs
first
valued at 14
sicca
of
was
less.
The confused
state of our
currency
may
ECONOMICS OF BRITISH
288
(called
pagodas by
Europeans),
556 kinds of
East India
Company
the confusion
in
issued
in
silver
Then
the
minted
coins.
its
[CH. Vill.
INDIA.
Calcutta,
Alam
19th
(1778) which
it
by the Company
in the
local circulation.
drawn.
Government
the
was declared
the
sole
legal
gave up bimetallism,
finally
purchasers.
Gold
mohurs
and
it
to the choice of
silver
rupees (each
is
alloy)
sovereign,
and
monetary
standard of India,
this
silver
15),
while the
were to be coined and issued on demand (for ceremonial purposes). In 1841, officers in charge of public
treasuries
{Ind. Emp.,
ii.
136, 143
Datta^ 257.)
VANISHING RUPEE.
CH. VIII.]
289
of
In
gold coins.
each,
it
hampered by the
rupee.
The
the
fall in
financial
1876
IS.
1887
1892
IS.
2'g8d.
IS. I'id.
The
6U-
IS. 4*89<i.
1894
after
iid.
IS. 8l'd.
1885
in 1899, at
is.
which
rose gradually
till
it
of
reached
^d.
is.
it
'*
the vanishing
officers
having
money
for
the
Home
falls,
amount
of
in
necessitates taxation
on
London."
But there
is
ECONOMICS OF BRITISH
290
and
INDIA.
[CH. VIII.
the
rupt.
in
when
1892,
the
chell sat in
of experts
Act
free
was
remedy
any shortage of the circulating medium (b) gold, both
sovereigns and bullion, was to be received by the
to coin rupees to
;
= Rs.
received in
fixed
payment
rate.
in
(c)
made
legal
sovereigns were to be
of Government dues at
same
the
transition stage.
increase
15,
private
to
tender
Its
objects were
(i)
to
stop further
(ii)
to
the
was
and
(iii)
to fami-
silver,
it
on them.
The coining
six years
is. 4^.,
of
but
the
CH.
VIII.]
silver,
(a)
fall
29
in
exchange
gives India
more rupees
standard countries,
duce
for gold,
for her
tea-planters
(b)
who
rises
laws of economics.
evident success
many
exchage
rate of
sell their
in
is
legislation
was an
from
it
who
now
opposed to
as strongly
their
being re-opened to
be
pro-
silver, suffer
and
" disastrous."
would
By
(i)
public,
(ii)
sovereigns were
made
{Ind.
Emp.,
iv.
518.)
is
land silver
is
is
till
the limit of
reached, as in Egypt.
legal tender
up
to
only.)
(In
Eng-
As
silver
ECONOMICS OF BRITISH
292
is
INDIA.
still
[CH. VIII.
we have not
yel
of
to say, open-
is
to continue
Code 7060
now
p. 76.)
II.
viz,,
gold,
Bank
Standard,
Mr. A. M. Lind-
of Bengal, published a
scheme
that
is
(i.e.,
is
it,
for
Ac-
But Government
w^ill offer in
remain
silver.
and
in
Bombay and
1000 payable
in
London
is.
By
will be
millions sterling
of
India,
is
to be
deposited in
GOLD EXCHANGE STANDARD.
CH. VIII.}
293
manufacture of
ornaments,"
silver
mittee
1898,
was
silver bullion
when
appreciated rupees
artificially
made
they are to
i.e.,
first
published in
rejected,
Com-
as Government and
its
Government
now
has
a local currency of
internal
actually
into Mr.
and notes
use,
drifted
Lindsay's scheme,
of currency development.
viz.,
is
In
for
purely
for international or
other words,
we have
as
is
principles.
century
neither
As was
ago,
it
is
first
into
gold
(the
are
international
made conmedium of
As Mr.
J.
M.
Exchange Standard
India]
is
ECONOMICS OF BRITISH
294
the prevailing
[CH. VIII.
main stream of
ten years it has become
it is
INDIA.
in the
monetary system of
Asia... It
is
also
Gold
is
an international, but
not
sl
local
currency"
medium
of exchange).
gold currency
is
It
is
is
whether
it
it
is
in
terms of national
actually
forms the
national
currency."
(p- 30).
the
in
London, Council
Telegraphic transfers,
the
rupee price of
per rupee)
is
This
is
the
normal
state
of things.
CH.
VIII.]
But
in
&
COUNCIL
STERLING BILLS.
295
Europe, very
Secretary
money
little
State has
of
sent to
India,
as
crisis in
while the
England
spend in
to
money
of Indian
millions
is
20
The
other years.
in
bills
the
in
London
(there being
Reserve,
in the Indian
branch of
the
Reserve
new
at
rupees, as
same
no longer
the
against
In
India.
profit of
interest
now
Reserve
very
its
much
contains,
is
maintained.
history.
Its
on
total
the
we
Government makes
the
it
puts
profit
from
silver
coinage, plus
thirty millions
(19 1 6)
ment meets
(if
The
into circulation,
of 191 2).
it
of
demands
of
is
London
(i.e.,
Council
i = Rs.
15,
ECONOMICS OF BRITISH
296
INDIA.
[CH. VIII.
SO conversely,
to
India
Government ought
to England, our
be able to pay
to
Reversed council
or
Otherwise,
destroyed,
bills')
the
at
same
rate.
the
exchange would
fall
Whenever
regulating.
is
so
low that
is
it
the gold
gold currency
to export sovereigns
profitable
below
the
i.e.,
export point,
exchange in India
the result
falls
that the
is
is
For
Reserve
of
was created
new
external
gold).
this
inactivity
is
its
since
in
1900,
when,
after
six
years'
was decided
that
It
and held
In
in
England
1906 the
silver
form of
sterling securities.
branch of the
Gold Standard
India and consists
in the
(maximum
It is
limit
held in
crores),
so
that
when
CH.
VIII.]
from
arises
297
Government may
issue rupees
this
in India
In
is
avoided.
1907
was decided
it
then forbidden
till
There being
to 191
1,
there
little or no
was no addi-
was decided
to
hold a portion of
had had
loss in
in
this
In
1912
fund in the
form of
State
the net
half
profit of future
railways.
invest
to
crisis
of 1908
accordance
the
with
Sterling
Secretary
of
a hurry and at a
bills.
In
the recommendations of
19 14,
the
mil.
25i
281
The Reserve
totalled
on 31 March 1912,
31 March 1914,
ECONOMICS OF BRITISH
298
On
(In
30 Sep.
9 16
it
[CH. VIII.
INDIA.
...
o'S
...
Cash at short notice
Temporary loans to the Home
4*2
...
...
Securities
...
...
16*4
Gold...
...
...
Temporary loans
to
Treasury
...
...
mil.
".
23-5
{In India)
balances
4
28-5
15.
obli'gation
ta
it
silver
= Rs.
fixed
many
rate
as currency
and
to keep a large
amount
of gold
When
is
brisk there
is
means
in
of
exchange.
an enhanced
demand for rupees, and gold is offered to the Government in exchange for them. But when trade is slack,
the rupees return to the treasuries as people (especially
and out-flow
largely
of
This in-flow
for
CH.
VIII.]
on demand, and
When
Reserve.
in part
there
is
299
and
gold comes
rupees return
use for
in,
them
demand gold
in
to
making
make
when
the stock of
In
buys
gold
is
greatly
silver
rupees.
of
Government
reduced.
no more
merchants
the
purchases,
remittances
is
when
the
stock
exhausted.
is
sovereigns in
the
above.
its
only 20 crores
rities,
of
rities of
is
bound
to
to hold a reserve
their
full value,
1.)
and
Notes up to Rs.
100 are
now
(Act VII. of
"universal"
On
crores,
{Ind.
Emp.,
tender
or provinces
iv.
only
in
within
the
518-522, Moral
or in the
{i.e.,
[CH. VIII.
300
The
Banks).
total
Sterhng securities
in
crores
lO
...
India
...
22'4
...
20-5
Silver
Rs
...
England
Rupee
Gold
...
...
66-11
against only
crores^
Balances.)
It
that the
distinction
between
the
Gold Standard
is
served by
England,]
is
no longer held
of securing ability
to meet the
obligation
of
by means
of
The
lodged
It is
now
cash
to
utilised
CH.
3OI
VIII.]
payments,
is
ideal.
is
differs
this
that
our paper
i.e.,
positing
We
for
expanding
out a
the
full
metallic reserves.
(Keynes, 56-67.)
in
He, therefore,
may
circulating
medium
be associated with
by the use
of credit our
may
be
us
to
may
be got rid
ECONOMICS OF BRITISH
302
of.
[CH. VIII.
the
In
INDIA.
lies
tion of India.
J.
Austen
ment
of
and management
of Indian
Govern-
the
The Commission
in its
(i)
the
"The
(in India)
history
for the
maintenance of the
crisis
of 1907-8."
(ii)
" It
would not be
to India's
advantage to en-
cir-
and
notes.
A mint for
(in
India)
is
is
no objection
to
its
establishment.
CH.
No
(iv)
the
3O3
VIII.]
the profits
all
on
and a much
it
larger portion
ultimately
one-half,
The whole
of
of
its
the
Indian
issue
troves, [this
the
fiduciary
alternative
(which
last
to
is
investment
maximum
permanent
in
now
as
an
securities,
allowed).
The
The Government
of
India should
make a
Banks from
rity.
In deciding
of surplus balances
much
in
as possible, (and
The amount
of
the
dependence on the
ECONOMICS OF BRITISH
304
(viij
[CH. VIII.
of the Secretary
member with
INDIA.
of
one
and commerce.
(viii)
On
the
Home
w^hile Sir S. B.
ment
Commission
Report,
arguments on the
old questions whether India can use a gold currency
in
their
nomic
of the mints
now
was an economi-
possess a
merely academic
For the benefit of students of Indian eco-
history,
summary
the
shall,
therefore,
The opponents
make
transactions
(2)
if
The
gold
is
CH.
VIII.]
made
easily accessible to
TO.
305
of
rupee
their
(3)
large
use paper
money
in
making
if
placed with-
reach,
their
is
which
is
The
into gold
to
the
(Lindsay).
convertibility
of
existing
coined silver
introduction
gold mono-metallism.
of
crores of rupees
into
cost
if it
under-
And
gold.
But
yet
cannot be maintained.
(5)
foreign capital
and the
when withdrawn
form of gold.
break
down.
20
rise
in
would
Hence, the
artificial
appreciation
ECONOMICS OF BRITISH
3o6
INDIA.
[CH. VHI.
of
Ch.
vii.)
There
objections.
sovereigns
and
easily
ascertainable
weight,
and
price fluctuates.
its
the total
amount of gold in the country, but constantvolume of gold currency in the country
ly reduces the
loss to
Government. Sovereigns
in
our
ordinary Indians.
use
Turkey and
shown
ports,
(to
that a
an internal
silver
is
perfectly
compatible with
inland places.
As
for
the
convenient and
less
by gold as more
CH.
VIII.]
307
form of rupees.
Moreover,
it is
a mistake to suppose
Bombay sovereigns
are
freely
[in
active circulation]
is
to be explained
fact
which gold
is
by the
much more
is
becoming
by reason
unsuitable,
(P.
94.)
*'
The
sovereign
is
must continue
circulation
in
any case to
consist of
payments that
the sovereign may gradually come into use, and for
these it is essentially a rival to the note," which is
rupees... It
is
undesirable.
(Pp.
74,
92-94.)
This
is
exactly the
308
[CH. VIIL
Our note
c.
demand
the
circulation increased
by
paper money
extension
is
of
commerce,
of
99
I
p. c. of the
value of
p. c.
As
shown
that
convert
its
no Government
is
can
fairly
MacLeod has
clearly
under an obligation to
is
all transactions
demand
is
What
mono-metallism
the
amount
The answer
life.
to the fifth
argument
is
that, as India
exports of produce,
for this
exchange or
of silver,
but
fall
it
fixed portion of
subject
in value
will be
gold.
to
fluctuations
of
will
"
H.
VIII.]
" act
precisely as
made
convertible
if
309^
payment
into
{Lindsay).
India, even
an
objection, about
fifth
exchange
in-
As O'Conor says
no longer operate.
exchange
of a fall in
directly there
is
is
fall of
*'
The advantage
transaction is in progress."
{Cd. 9037, p. 51.)
With
a fixed exchange, transactions between England and
summing up
mind that
India's
bear in
For good or
maintained.
we must
evil,
Her
silver currency
of weakness to her in
price of silver.
served her,
is
cannot stand
it is
Em-
a source
fall in
the
it.
world.
ECONOMICS OF BRITISH
3IO
INDIA.
[CH. VIII.
free coinage of
ties,
Government
of its
exchange
difficul-
who had
invested
doubt,
relieved
more than
only capital,
at 42
p.
c.
and one-third
silver.
crores
of
drawn from
The holders
of ornaments have
now
lost
pawning them.
(2) The unnatural and immense difference in value
between coined and uncoined silver powerfully entheir credit in
One hundred
market rate
of
coined there
(3)
The
is
bullion
;
so that
a profit of 42
artificial
p. c.
limitation
of
the
number of
p. c.
above
its
intrinsic
value.
or "the purchasing
tendency to increase.
power
of
the
rupee" has a
CH.
VIII.]
of
3II
during
prices
1898 and
ment.
{Ind. Etnp.,
iii.
466.)
is
admitted by Govern-
now
Similarly,
by
this
as
increased,
ciated rupee.
tax-payer,
now
currency legislation.
[The operation of
this
The
(4)
make
remittances to India
gold,
countries will
and
now
their
in
gold-using foreign
[This
ment
life,
For the purposes of internal trade, the paywages to labourers, and the expenses of daily
of
If
felt
by
ECONOMICS OF BRITISH
312
is
home
This policy
change.
and
all
bound
Government
use.
must, therefore,
metal for
[CH. VIIL
INDIA.
to
one
uses
is
fail.
proved.]
(6) India's trade
China
disturbed.
is
the
chief
Chinese
closing
dollars
of
received
by Indian manufacturers
c.
Thus, the
loss
of
42
ii.
p. 84,
prices in
China have
India
is
now
to the viceroy-
the duty on
many
though at a
time
many
articles of
sacrifice
imof
At the same
Under
abolished.
CH. VIII.]
Lord Ripon
all
3 13
For
(1882).
duties,
in 1888.
But the
the growth
fall in
two millions
and
sterling in 1894.
In the
deficit
March
of
of that
on
articles
per cent,
one
p. c.
was
only
Five
silver.
and
paid
steel
raw
law
was amended, imported cotton goods (both fabrics and
In December, the
same
rate
those below
Act
II
of
(a)
reduced to
3!^
p.c, the
excise
By making
similarly
amount of
5 1 lakhs.
ECONOMICS OF BRITISH
314
INDIA.
[CH. VIII,
duty
man
of Lancashire."
is
some years
(Dutt, 543.)
after its
first
This
Indian
profits of the
imposi-
by the rebellion
reliev-
in China, the
closure
silver,
of
the
Indian
and Japanese
The mill
Bombay was sinking when a market was
opened for it at home by the Swadeshi movement.
{Ind.
Emp.,
In
iv.
261-265
'>
order to encourage
Germany and
to
This
had the
effect of artificially
Germany
injured
itself.
the
sale
it
This unfair
of
the
the
competition
cane-sugar of
greatly
Mauritius,
Jamaica and other British possessions, and also discouraged the sugar industry of India which was on
the
decline.
So,
the
Indian Government in
(in
addition to
1899
the
VIII.]
:H.
)f
and
bounties
all sugars
fair competition.
>CIV of 1899.)
315
escaped from
the
in
(Act
the system
countervailing
iuty
264).
into
At
coventions with
dropped
the
British
bounties and
their
have entered
Government
" Cartel,"
so
and
that all
hanced import
The
duties,
tobacco
trade,
on
all classes of
The
tariff as
Indian
it
stood in 1914.
In
addi-
on
(for
political
reasons),
ammunition
(i) arms and
(2)
liquors and spirits (for moral reasons), (3) silver, 4
annas per ounce (on economic grounds), (4) salt, which
pays an import duty equivalent to the excise on
salt manufactured in India, viz.. Re. i per maund, (5)
tion to the above, special import duties are levied
tobacco and
its
to Re.
ECONOMICS OF BRITISH
3l6
general duty of 5
for
p.
In
c.
the free
list
are
grain,
-animals,
[CH. VIII.
p.c,
3J- p.
INDIA.
tea-chests,
skins,
printing presses,
goods,
from
liquors,
c.
and
from
7 p.
silver
p. c. of the
hundreds of minor
articles.
less
duty.
In
19 1 3
our
came from
total)
Some 76
petty articles
crores,
...
...
2" 11
Liquors
...
...
...
Silver
.,.
...
...
98
Petroleum
...
...
...
70
Sugar
...
...
...
91
...
...
1*32
...
...
...
72
Other
...
...
...
2*42
salt
lakhs
Other metals
articles
crores Rs.
crores Rs.
Export
on
rice
duties,
(a)
At present
there
is
a duty
on
Burma, where the annual produce far exceeds what
is needed for the consumption
The
of the people.
This chiefly
falls
WAR CHANGES
CH. Vlir.]
duty
in
is
highest
the
3 17
igi2,
IN TARIFF.
1913(b)
imposed on tea-exports
In
respect of this
jute
similar
of
Chittagong.
War
changes.
tariff till
March 1916, when additions to our custom duties became necessary for meeting the expenses incidental tO'
war. The result of the tariff amendments of 1916 and
19 1 7
was
(a)
The
p.
c.
the
y^
enhanced to 2^
stood at
3J-
rate
p. c.
of
;
p. c. only,
were
was
raised from 5
to
was
manufactures, which had
p. c.
cotton
on iron and
steel
in 19 17 subjected to the
The
special
liquors,,
have
been increased.
(c)
The
free
list
taxing
economics of British
3j8
india.
[ch. viii
cuttings lo as.
of
400
tea
&c.
lbs.
and
li per
Rs.
raw
jute
100
In
lbs.
per ton
jute'
its
commodity and
artificial
stimulus
capital
less suited to
Protection,
immediate
therefore,
But
loss.
inflicts
it is
on
the
country
an
is
the
German
writer List,
for
and
when
the
skill
development
the country
national
of
the
interests
of
the
There-
is
of
of
the
nation.
minor importance
of the
productive
CH.
forces of
3I9
VIII.]
society... From
moment might
measured by the
The power
of
gain of a power
an
Defence
it is
of production^
industrial
of
is
more im-
sacrifice of value is
made good by
the
amount
infinitely greater
war.
is infinitely
If
itself.
to the nation
of productive power."
loss
producing wealth
of material
independence in case of
than
opulence."
same time
At tlie
which
to
sell
themselves from
developed the
the
first
or
means
of raising
advances in agriculture.
is
(i) In
less
ECONOMICS OF BRITISH
320
INDIA.
[CH. VIII.
(2) In
resort to protection to
raised.
and foreign
trade.
The
first
of
first
all
endeavour to
justifiable
ally capable of
all the
means
for
their
establishing
own."
(3)
In
the
a manufacturing power of
third
stage,
tection
in the
is
home
producers.
{Listy
fosters
xviii-xxiii,
indolence
93,
its
transiit
has
and
107,
313).
Protection, therefore,
achieved
prin-
144, Ch.
reaching
dence,
after
now
will be benefited as a
When
this stage
protective duties
consumer.
(List^
117, 313).
home
CH.
VIII.]
influence of full
and
free
321
J. S.
young
industries.
"
The only
is
when
itself
The
There
sooner.
may
it
and
experience... It cannot
own risk,
new manu-
of carrying
it
on until the
with
whom
the processes
are
traditional... But
the
good ground
it
which
it."
The
question
is
whether
home
industries.
Now
62*4 p.
7*5 p.
c.
c.
of our imports
322
British possessions,
(making a
able
man can
like India to
total of 70 p.
or
c.
c.
for the
than one-third
less
[CH. VIII.
No
1.)
reason-
British goods.
Even
on Preferential Tariffs, para 10, Webh^ p. 67.)
when Britain imposes " a particularly crushing and
unfair " duty on Indian tea, tobacco
many
protective
tariff.
is,
should India do so
is
justified
of countries
It is
(6)
and
tion to
them
nou) will
and decline
The late
was due not
List
to the
growth
coal, are
have
in the case
effort
We
by Mill and
The
colonies penalise
only
coffee {Webby
manufactures,
discourage
British
and
amount
viz.,
fifty
of capital.
Protec-
be an encouragement to slack
of efhciency.
Bombay
petition, but to
CH.
VIII.]
IN INDIA.
323
tive capital
total
Germany), because of
the
inefficiency
of
two
staff
and so long as
defects continue,
to Bengal.
Protection
We
have shown
in
The
them.
small industries,
cigar factories,
Next
to
these
is
we have
soap factories,
etc.,
all
with small capitals and hand appliances, by a comparatively inefficient because out-of-date process.
these
industries
protection.
can yield
Many
profit
even
now without
ECONOMICS OF BRITISH
324
INDIA.
[CH. VIII.
managed by men
New-
life.
no chance
secure
of failing to
spirit is alive,
the
home
and
it
has
So
far as
can
see,
On
why
in
the other
trade
free
national resources,
of
fice
like India
can
ill
afford to
is
man
and
let
opposed to industrial
efficiency
and
is
Such
progress.
an ever-present fear
we
unless
latest
ceaselessly
improvements.
on
inefficiency
Its
effect,
people,
is
exert
ourselves
Protection would be a
and would
unless
and
foster
a fatal indolence.
always demoralising
;*
and we must
confess
numbing.
CH.
VIII.]
325
with sadness that the Indian people are not like the
Germans
or Americans.
Secondly, protective
are
duties
By them
a return to
vested interests
and nail
to
resist
trade
free
easy to impose,
Witness the
necessary.
still
is
greater plausibility
corn.
exercised
enervating influence
of
An
seldom
elastic,
it
is
foreign competition
less
is
keen
is
In a small
indispensable,
[there].
When
to forget
its
many
Even
in
numbed
France, industry
points when,
derably reduced."
in
i860,
{Pierson,
is
is
faculties
was found
by no means an
of an enervated
to be lagging at
189.)
"The
transition
always accompanied by
from
losses for
{Ibid, 187.)
ECONOMICS OF BRITISH
30
Even
duty
List
till
[CH. VIII.
of wealth
INDIA.
"the
highest
degree
We
that
is
to say,
till
if
they
admits.
(Pp.
This danger
93, 249.)
8,
the
common
is
especially
people have no
on the
in-
legislature,'^^*
the
rich,
after its
silent millions of
economic necessity
the
is
benefit
over,
of
and the
by
protection,
is
the
home
indus-
question of retaliation or
of countries
in
States of
*
made
Two
CH.
VIII.]
SWADESHI MOVEMENT
ITS ORIGIN.
327
Webb) on Indian
Mr.
tea
and tobacco.
Now,
retalia-
tion
proportion to our
But
on Tariff Reform.
that retaliation
when
the
threat of
it
carried
fails
and
the
out,
it
importance
removes the
disabilities
retaliatory
result
is
it
only
on our
actually
are
Unlike protection,
section
econon>ic
of
is
the
its
foreign
market.
grow in India. But it can increase pur revenue somewhat at the expense of the foreigner and thus make
some amends for the restriction of the sale of our
goods abroad.
own
thirty years
ful
ago
in the
Bombay
Presidency.
Thought-
sified
the
Europe,
ECONOMICS OF BRITISH
328
the
of
life
Bombay
initiate,
home industries in
Germany. They resolved
(directly)
assist
in
[CH. VIII.
mills of Lancashire,
State
INDIA.
of
pioneer or
imitation of the
the people
that
a part
in
Germany
spirit
of
or the United
had achieved
America.
This
other
States
When
of
Mr. Viswanath
Narayan
came to
surprised
the
my
country's mills
To
their
clothes, as
any
finer
fabric."
About
religious duty.
trade
own
on her dependency,
industries
century,
by
after
relentless
was misconstrued
free
having built up
protection
in the very
in
the
manner
lier
i8th
of List.
CH.
SPREAD OF SWADESHI.
VIII.]
The
The
into
idea, however,
Bengal made
it
329
was
still
confined
universal.
administrations,
political
object of creating
diversity of
roused the Bengali leaders in August 1905 to administer to the nation the
vow
of
instead.
The quick
the
life
creed.
among
Alone,
the
4I
crores of
people
of people).
Bengali
localities
friction,
the
reason
causes), "honest
of
the
It is still
in
ECONOMICS OF BRITISH
;^^0
Bengal
but
it
INDIA.
[CH. VIII,
It
decrease
as
From
to
me
thing,
in
the
to be
it
is
Germany
price
Swadeshi seems
entirely voluntary
Nobody
home manufacture
free foreign
For one
of view,
than protection.
better
a commodity.
of
dearer
economic point
much
enhance the
need buy a
in India
unless he
is
willing to
make
know
of sacrifice
and turn
To
The
ethical value of
Swadeshi
is
home mar-
even greater.
us,
who
however
The poor
student
all be-
that
that he
is
making
own
pleasure
ia
CH.
Deccan
labourers,
whom
thank him.
will never
oi
331
)rder to
)f
VIII.]
is
fostered
spirit
by such
acts,
The customs-
a nation.
Some
on
no revenue to the
State, (6)
and
(c)
the
demand which
to be uncertain
it is
generally uninformed
and spasmodic.
from Swadeshi
As
for the
is
apt
objec-
first
inconsistent ideals.
import duty
is
large, the
home
when
industries
logical protectionist
is
fully
satisfied
only
at
all.
when
at
it
is
only temporary
new
Lastly,
industries
this
the revenue
ii,
is
voluntary.
The
ECONOMICS OF BRITISH
332
a protectionist
ripe political
tariff
INDIA.
[CH. VIII.
but
not quite
it is
embody
will always
readily
good
of the country.
of
is
{Ibid^ i88.)
no practical significance
The third
among a
objecfairly
any
a mere negation
industries.
An
fill."
But
unlike Swadeshi
advocate
class of
it
boycott
of
commodity,
cannot create
has
asserted,
it is difficult
to see
in to
be
If
home
industry.
starting such
If
an industry
case of
home
goods,
boycott.
i.e.,
When
it
is
is
founded,
a case of pre-
of Swadeshi,
and not a
Americans
boycotted
the
CH. VIII.]
it
to spite
it
It is
333
political
trading country,
is
a free
among a
certain
to
retaliatory
on foreign imports
(or to
induce
foreign States
their
much
to
protect
need such
contribute
artificial support), as to
to
arrange the
either
the
tarifE in
It
way that an
may fall on the
such a
wholly or in part,
producer.
make
English revenue.
the foreigner
is
possible to
import duty,
profits of
of
the
taxed
taxation on
England
as
Germany
or
U.
S.
against
They hope
to
knit the
empire together
ECONOMICS OF BRITISH
334
by
the
common
of
ties
INDIA.
[CH. VIII.
common
and
interest
animosity.
refused
1903,
following grounds
on the
England will
(a)
22nd
in its despatch of
refuse
to
let
light
rate.
(6) If
are
only
because
we import
thrice
as
on
very great,
much from
the British
loss of
between
market
British
is
so
imports,
the competition
keen that
this
in the Indian
preferential
duty will
higher rate),
India
is
exports worth 6
countries,
regularly.
imports
if
she
is
But a
millions sterling
to
pay
interest
preferential
may provoke
those
suffer
profit.
sell
surplus
in gold-standard
countries
to
CH.
VIII.]
EXPORTS.
335
the
off,
reprisals,
As the
may
India may
our exports
fall
dis-
market decline
would be
''the result
disastrous."
ad-
she
*'
industries.
several products in
a monopoly,
etc.,
(such as wheat,
competes
their
Our exports
which India
viz., jute,
balans, mowra,
huge
quantities
of
raw
materials which
for their
out
sends
til
composed
of
practically enjoys
wood, myro-
seeds,
[in foreign
are
hides, etc.)
in
which India
strong position
many important
so
we can
that
to keep
their
own
peoples
is
having an
effective
"
quoted, para
15).
industries."
(Despatch
ECONOMICS OF BRITISH
33^
[CH. VIIL
INDIA.
ai
Mr.
consumer).
Webb
shown
no reason why
duty
99.)
(p.
It
to
admits that
England as a
if
benefits
would accrue
Kingdom than
to India.
But that
is
to
we import
And
mere tool
that
must be used as a
to say, India
is
in England's
or U. S. A.
Professor
the nature of
rise in the
depend, or of food
price either
of
stuffs... India
has equally
little
[will
blow."
He shows
that
among
suffer
a staggering
CH.
VIII.]
represent go p.
from India,
in
the
raw
first
of the
c.
(a) preference is
and
a practical impossibility
English market.
and raw
cotton
are
monopoly
337
raw
British
price
(c)
will
be permitted in Great
Britain."
22
CHAPTER IX.
PUBLIC FINANCE.
The
Native
States
these sources
it
politically
incident of lordship
or
dependent on
income which
derives an
domain,
rent
viz.^
From
it.
the natural
is
from the
middlemen
revenue from
others {zaynindari)
in
in
the
tribute
and
fees
grazing
for
from
(2)
the
and
Government
in India
is
the income
the gain
of
which
is
a monopolist.
which
it
earns
payment from
exacts
petitions,
^c,
in
Law
ment
the
to
(4)
file
rendered by
who have
all
term.
in
the
CH.
IX.]
economic
sense.
taxes
339
(5) Lastly,
the Ciovernment
various kinds on
of
its
subjects
(6) It
makes a
currency,
is
on the coinage
due to the
artificially
of the
for
sometimes
be-
wliich
strictly
set apart in
As Government has
England,
makes a
it
profit
when exchange
is
favour-
of
is.
to us, there
Conversely,
^d.
is
when exchange
is
adverse
Government
consists of all
its
exception
companies are
Government. The
interest charges
and
amount received by
found by deducting the
of the
facture of
opium
railways
and manu-
of
collection)
ECONOMICS OF BRITISH
340
The
INDIA.
[CH. IX.
deductions
tion
in
the
cost
The
cost
of
the
82
crores,
p.
149.)
121
crores
Thus
and
the
net
net expenditure
76
crores,
much again
the
stores,
net expenditure.
48th No.,
and the
insurance",
together form
Progy.y
collec-
of
the
revenue
115 crores
Proportion of
crores Rs.
land rev.
to total
crores Rs.
tion of
military
ex p. to
Proportion of
opium
revenue
total
to total
revenue
revenue,
revenue,
p.c.
p.c.
p.c.
Deficit
Surplus
crore Rs.
62-83
40
40-8
7*5
+ 4.96
73-08
39'2
39'47
+ 0-81
erage for
1901-5.
for
1906-10.
1911
85-48
79*57
35
34'3
9-1
+ 5"9i
1912
90'54
85-88
38-2
324
7'5
+4-65
1913
8677
83-3
35-6
34*4
+3-46
1914
7977
82-45
38-4
38-4
1-7
-2-68
1^915
CH.
NET REVENUE.
IX.]
341
Our net revenue (19 13) was raised from the following sources
:
Crores Bs,
Domain,
I.
viz.,
34-88
..
Land revenue
Forest
3o'93
3-32
III.
i.e.,
viz.,
Opium
909
9*57
7-i8
1-89
;:
Irrigation
office
<
Railways
Post
61
")
..
and Telegraph
fV. Taxation,
48
'1
40-91
..
'
viz.,
Excise
..
Customs
Stamps
Salt
13-18
ii'ii
7-89
..
477
...
Income-tax
2-9
..
Registration
Provincial rates
( = cesses on land)
V.
77
27
49
..
Total
86*77
...
ci'ores.
Rs.
opium
at
the
fixed
purified
balls in
In
price
whom
the
of
it is
Govern-
is
now
confined
to
a part of
342
[CH. IX.
The quantity
home consumption
of pre-
(called
"excise opium")
made
is
India
I '93
crores of rupees in
excise
revenue.
it.
is
1913 and
Opium
"provision opium")
to a
subject
is
is
credited to
the
sold in chests of
140
lbs.
each
"Malwa
1912}.
The
But early
in
19 13
the export of
opium (mainly
to China)
The export
of
History
of
Bombay was
abolished.
of
By
recognised foreign
import.
By
the
opium
additional
Convention, signed in
China
as a legitimate article of
1885,
article
it
to
the
Chefoo
consideration
to
taels
would
no
free the
port
when
Chinese Government
the
other duties or
all
the
raising
of
343
of entry
to
(like
opium was
the
transport from
in
of the kingdom
opium was opened at the
would not be subjected to
interior
place of consumption
it
it
was
opium Com.
p.
132.)
In
ed
137
{Report
Cd. 7723,
within
opium
10 years, and
in
the
China
to be suppress-
Indian
Government
restricting the
to
China,
fewer chests
i.e.,
May
igi
i,
the Indian
ECONOMICS OF BRITISH INDIA.
344
Chinese ports.
Bombay)
19 13
opium thus
of
China was
now produced
the sale
in
last
(at
certificated
stopped,
finally
with China at
traffic
is
In
[CH. IX.
Calcutta or
for
export
to
came
to
an end.
Opium
consumption
ternal
in
total
number
from foreigners.
Salt tax.
and 9786
The
from above
44,600 in
191
1,
in 1915.
imported, a custom
and on the
duty
is
salt
levied,
frontier,
included
is
under a
respectively.
level
CH.
INCOME TAX.
IX.]
c.
home-made and 30
345
foreign salt.
p. c.
such
as transfer
of
property,
bonds,
In igio the
is
ii.
537.)
country-made
facturing)
all
spirits, also
manu-
and
(6)
in India.
consumed
and the
foreign liquors
under Excise.
pies.
In 1914 the
total
number
346
ECONOMICS OF BRITISH
of persons
(or
INDIA.
IX,
graduated Income
to Rs.
[CH.
Tax
In
191 6,
a fully
up
pies,
Rs.
50,000
amount
the
half
first
lakh
in
excess
the
of
third
is
half
an extra
extra 3
The
now
to
lakh,
2|- as.,
an extra
and
incomes above 2I
all
lakhs
an
as.
cesses
on land
and
dispensaries
only
and Punjab),
and patwaris,
the
abolished.
in
of land,
landlord.
taxes
They arc
District
entirely
or half,
Boards are
of
by the
[Municipal
not included
in
the
amounts
RAILWAY REVENUE.
'
IX.]
CII.
347
**
to
yielded
It
liable to
is
its
record surplus of
first
office
century)
amounting to
surplus
continued to
rise
9' 5 7
brought on a decline
There
is
to
viz.,
it
till
crores
the
in
191 3.
The war
crores in 19 14.
5' 13
reached a
in
From 1909
1*13 crores.
maximum
The
1914).
and 1909
Telegraphs caused
in 191
In
1,
but supplied
19 14 Post and
The Railway
surplus
two
first
1906,
crores in 1908.
crores
in
191 2
and again
in 19 13,
with a
fall
to
Our
I.
II.
III.
Military expenditure
CoHect/on of revenue
made up
...
...
...
...
29*84
...
...
io'02
348
IV.
V.
[VI.
CxV/Z expenditure
viz.y Civil depts.
...
...
Miscellaneous,
2478
7* 12
civil charges,
10*19 ]
Civil Public Works,
Fow/ne relief and insurance
...
Provincial balances met exp. of 42 lakhs]
Total
is
cvore R^.
42*1
i'^
83-3
...
[CH. IX.
''genera!
and other
officers
down
to
Commissioners of
jails,
divisions,
made up
civil
of pensions, stationery
penses (other than judicial) of thejdistrict administration are entered under the
irrigation
by the
works
is
State, partly
Famine Insurance
fund).
Excluding
i.e.,
PROVINCIAL FINANXE.
IX.]
[.
provincial revenues,
are maintained
349
mainly out
of
Provincial Finance.
assigns to the Provincial
fixed shares of
the
[While] opium,
salt,
and
forests
are
taxes,,
terms
From
required
to
the
Provincial Governments
of the expenditure
and a portion
of the expenditure
The revenue
Government
is
viz.,
the
Home
Charges, the
Administration" expenses.
If
the Provincial
Govern-
been spent.
It
is
Moral
interesting
sources of revenue
crores of rupees).
&
to note
and expenditure
ECONOMICS OF BRITISH
350
INDIA.
[CH. IX.
vD
cy\
'"'
vo
ot^
a.
oo'
r>.
!>.
^
o
ON
t^
7^
Vi
00
ot^
b
m
t^
ro
'^
r<
w^
vO
'ro
b^
b
ro
00
~~~
1>-
ro
c^
CO
b
00
Vo
00
Th
00
00
r<
u->
g.
00
i->
0^
3 cd
c ?.^
a ^ o
00
00
LO
lO
00
*a.
t>.
00
cr^
rn
t>-
oK
'O
ON
lO
Vo
t-*
b
ro
r<
V^
'^
CO
VO
"P
>o
lO
0?
'~
t^
^
o
ON
CO
i_i
l>w
CO
wo
CJ
^r^
r^
c<
!>.
Co
M
t>.
ri
H
'pH
>o
t>.
o
vO
HH
i>.
<N
cn
K
00
0^
vb
o
M
vD
t^
Vh
0^
ro
CI
cn
-*-
a>
^
lO
oy^
ON
t>.
"
i:>^
ro
ri
'^
r^
cn
00
vp
O
'*-
vp
',_)
C7>
t^
io
>
vb
ro
O
^
i^
r*
ri
^
"ro
o
'lO
ro
00
]^
Vi-
ro
ro
C<
Ti-
cn
*M
Vt-
ro
b^
ro
l^
*M
7^1-
cn
rn
*C
*M
<u
"
'~
s
53
"^
>
cn
ro
'^_,
:2:
ro
b>
w
r
b^
'<*-
ro
p
^
c<
'^
ro
-<*
"
ro
"
"
r*
"
'a,
;/!
=3
'6
^-
.1
v^
O W u ^
pV^
ro
cr.
t^
ro
"->
1
c3
c^
d*
nd
s
cx3
c^
Vh
4)
ro
00
00
r<
'rh
d,
'cn
r
5^
Q::
>
-<*-
CO
'uO
CI
vb
"
00
ro
b^
ro
i:^
-r*-
00
"n
00
cr>
!>.
.Th
00
ia
< j;-
*o
m %
ci,
(U
1 .1
1
3 'O3
a,
w S U S
0)
-"
CH.
IX.]
351
the
is
held by
many
to be not a tax at
all,
price of
State), the
forest
States,
the
the
total
was
i>f
amount
population
the
land revenue
the
that
of
raised
(is.
be included, the
3s. yjc^. in
191
(against
2^d. in 1901).
iv.
Englisli,
46).
Local taxation.
in
The
rates
are very
low (except
and
light
only.
In
very few
viz., police,
places
is
it
road,
supplies
mostly the
gift of
support of education
is
it
its
is
The
district
of funds
main
and can do
little
useful work.
Except the
roads of the
district,
ECONOMICS OF BRITISH
352
INDIA.
and
few
very
mere mud-tracks,^
Education
bridged.
are
rivers
[CH. IX.
is
which
permit,
is
far
of
the vast
population.
The usual
octroi duties
the U. P.,
on roads and
(c) tolls
ferries
and
trades,
and lighting
income
rate, {e)
(/)
receipts
and
(i)
varying annual
gifts
from Government by
way
of aid.
In 191 2 the total
in India
was
8*25 crores.
In 191
1,
and
local boards
had a
total
4s., (the
Our 1126
income
district
of 6* 10 crores
(against 2id. in
local boards
is
1899.)
The income
of district
cesses
3-2-d.
and
on agricul-
Since
A
CH. IX.J
IS
353
i.e.,
the
from
the
The
nature
good deal
of
land
of
controversy
revenue in India.
India
The
is
writers
official
revenue
natural
monopoly which
to
certain
it is
individuals,
is
a land-tax or
of
the
State,
the
either
permanently
(as
in
rent (or
on the
'net
assets'
equivalent to rent),
of his
own
profits,
it
is
theoretically
regarded as
fall
on the producer.
however,
and ryotwari
The machinery
23
differs
areas,
"The State
and
of assessment
is
ultimate owner.
collection
is
com-
ECONOMICS OF BRITISH
354
pulsory
it
nearer akin
is
INDIA.
collector
[CH. IX.
strictness
[the
from
the
ought to conform
it
assimilated with
taxes
Where
the
State
movement
rent
are
the
They
[See
feudal lord.
is
of land values,
very close
State,
discussion,
therefore,
is
profitless
words.
in order
taxation."
The
approximation to
the
distinction
it
if
a land-tax
becomes
in
fact
is
war
so
rent."
of
"A
54-56.)
merely a
is
high as to
{Campbell.
n.)
are claimed
by
official
(i) It is the
is
raised
only
without
as
it
is
production.
is
(2)
It
the ideal
CH.
IX.]
type of assessment
writers.
in
many
to
economic
(3)
which
Europe.
parts,
according
355
is
advocated by
falls
(4) It
many
philosophers
{Indian Empire^
tax on rent
iv.
falls
234.)
actual
the
of
It is
cultivator.''
it
does
charge
(i.e.,
raise prices, as it
yields
monopoly
would be an
and would
even on land which
indirect
would be
no economic
land-tax
may
rent.
levied
(Pierson,
i.
104.)
Rut "the
improvement of the
This
soil.
(Ibid, 106.)
The real point at issue between the Indian Government and its critics is one of fact and not of principle.
Is
the
ment a tax on
rents only, or
is
of
settle-
screwed up so high
as to encroach on
interest
is it
the
cultivator's
The
that the State takes less than half the 'net assets' and
wages of cultivation
besides, which equals or
but a substantial
profit
ECONOMICS OF BRITISH
356
Such
222-225.)
assessment laid
in the
INDIA.
(Ind.
[CH. IX.
Emp.^
iv.
217^
is
is
protected by
irrigation
people.
represents
[of
Western
is
who
standard of
32.)
life
as
the pressure
increases."
{Essay s^
Bombay
last
Presidency "
how
in
the
of statutes
CH.
WHERE LAND-TAX
IX.]
EXCESSIVE?
IS
especially
357
how
U.
the
in
" the
P.,
The
according to him
effect,
to
31,
103,
139,
the
and varied
ripe
peasants
certain
officer,
in
parts
the
of
C.
P.,
the
Deccan,
and
Gujrat,
more
48i-'7,
who
Mr. R. C. Dutt,
179.)
and
impossible hope.
rent.
(Dutt,
w.)
462,
332,
But
it
must be
relaxation
by Government
in the last
few
of
the
ryot
full
term of
settle-
benefit of
the
CHAPTER
X.
the
British
Empire.
In
England and her self-governing Dominions the manhood of the nation has been more or less withdrawn
from trade and industry for war purposes, and the
manufactories of commercial goods have been turned
into munition
restricting
factories,
former^ India, being a Dependency and a preponderantly agricultural country, has not suffered decrease
of production
in
viz.y
agriculture,
of labour.
she
is
On
closer
found to be
false.
as
much
as
is
life,
are
more than
the
they.
The raw
suffered
materials,
have
which
fallen
CH. X.]
risen
in
price
359
in
a sufferer both as a
she
is
nations of the
neutral
all
If
like
left free
compensated
herself
for
imports by raising
foreign
enhanced price
the
the
price
of
of her
raw
the
The outbreak
of the
war
in
They used
off.
exports
(against
9' 2 p.c. of
(6)
(a)
cut
August 19 14 produced
237
take
i4"2
p.c.
materials
manufactured
p.
c.
of our
total
Export of
import of
to
p.c.
by England).
manufacture to and
of
goods
from
the
Allied
countries
ment
their
of
diversion
of
economic
men and
production
capital
to
the
through
the
unproductive
(3*3
ECONOMICS OF BRITISH
360
of
70
p.c.
of
British
S. A.),
INDIA.
and
[CH. X.
(ii)
the diver-
to the
Under
war.
pCHrary insecurity
ravages of the
" Emden week"
season,
there
was.no
bank
deposits.
This
last
^-^
to
money and
make a
corner in
credulity.
less
[A part of the
upon
consumed.
upon
for
to
pay higher
Bank deposits
prices for
the
goods they
drawn
features
marked
the opening
it,
CH. X.]
and a
now
of
sort
adjustment to the
new
361
situation has
noticeable characteristics
(a)
'
state of siege
'
prevails,
i.e.,
export, import,
ven wher;^
ment.
(c)
war work.
(d)
greatly reduced
others
closing
of
the
Abnormal
subservient to war,
steel
and
(/)
India
iron,
costlier,
and
all
through the
machinery, chemicals,
(e)
and made
killed
&c.
artificial dyes,
development of
e.g.,
a few
industries
few industries
for
which
woollen
of
(g) operates.
lesser extent,
of the
of
Japan (and, to a
ECONOMICS OF BRITISH
362
market.
INDIA.
rose
1913.
of our
c.
from 4*4
crores
In 1915 Japan
sent 83*4 p.
[CH. X.
p. c. in
'
To sum up
we have
suffered in
For example,
because the 30
p. c. of
maund
At present
(April,
situation in India
is
191 7),
whole
the
economic
months ago,)
all
now 2^
of
which
times
what
it
was
eight
two)
How
demand
loss.
in
some
In the eight
months
March
166 crores
(the
CH. X.]
Imports
p. c.
The
period.
fell
loss
oil-seeds (ii'02
(7*55
I
off
p. c.
heaviest on
rice
cr.),
(9"45
raw
raw
cr.),
manufactures
cotton
^^Oj
by 34
fell
363
(4*11
cotton
raw
cr.),
cr.)
loss, as
fall in price,
income
of jute growers
was 22*75
total losses in
crores of
Rupees.
In cotton the
1976 and
from
In Oct. 19 13
first
made
This
jute in
many
parts of
fall in price
it
day
and the
result
was
that a crop
unpro-
Re
ECONOMICS OF BRITISH
364
crores of
INDIA.
Rupees was
Cotton
shown below
{all
left to
perish
in the fields.
declined as
[CH.
India)
Jute
1913
1914
1915
...
25-2
24*59
1774
...
2*9
3-36
2-37
1916
entirely
This
loss
fell
Calcutta
Our
in
is
and
skins,
and cotton.
district
1
9 14
sub-division
single
suffered
loss
of
less
in
lakhs on
than
the
its
in jute
Rangpur
tobacco in
The
loss
in the price of
traders refusing to
suffered
rise
may be illustrated by
we imported 647,700 tons
imported goods
In 19 15
of
it,
for
crores less,
sumers.
[In the
war months
loss as
con-
X.]
H.
he
in
rise
osses
PROFITS.
365
Our
crores.]
other
chapter.
his
WAR
Opium
How
las
in
been a
special
wheat,
rise
demand
tea,
the
in
Europe
in
indigo,
woollen
in
war-time,
stuff,
There
which are
prices of articles
such
dressed
as
leather,
sjunny
British
mum
possessions only
of 78,000 tons
a year.
It
also
to a
maxi-
began to purchase
on
the
it
profit.
As the
result
of
in
ECONOMICS OF BRITISH
366
[CH. X.
French,
gunny cloth
bags, grain-bags,
&c., were so
considera-
on an unique period of
trade entered
that the
ble
INDIA.
labourers.
demand
"The
[for
raw
disappearance of the
jute]
Continental
of freight
gave
raw
jute
in
for
The stoppage
owing to war,
The
total
in 19 13
to 38 crores in J915.
The
28
price of the
Raw
cotton
The
war
recovered
price-level.
War and
the cotton
industry,
''Some
its
pre-
Bombay
industry following
the
had
suffered
from the
in
the
which during 19 14
WAR
:H. X.]
The stoppage
{Shirras, 35).
which used
of chemicals
and
But
took place
in
spite
in 1915,
of
when
first
dyes,
to
satisfactory
367
it,
for the
of cotton
3'65
foreign yarn
irnported
crores
stock
now
is
crores.
cotton mills.
Prices
and Wages.
In
in
Burma, the
was
price
and the
rise
Wheat was
rapidly
forced
hemp
up
by
the
war
So,
in
own
the
doned
in
May
is
now allowed
from
the
to
be
Customs
ECONOMICS OF BRITISH
368
maximum
the
INDIA.
[CH. X.
Sept. 19 14 (102),
the July 1 9 14 price level as 100),
Oct. (110), Dec. (125), January 1915 (134), Feb. (145),
March
(121),
in July,
when a
rise set in
till it
reached 93
in 102 in
which culminated
which
fall
after the
rise,
in the prices of
generation.
their
away
the
unexpect-
But
of
chemicals,
as
the
medicines,
metals
following comparative
CH.
X.
July
1914
Prices.
Wheat
...
Rice
Raw jute
. .
Cotton
Java sugar
369
March
March
March
1915
1916
1917
100
132
90
108
108
64
90
72
102
174
183
Liverpool salt
206
394
Tea
>
117
107
>
83
82
Jute manufactures
96
144
Cotton
121
Oil-seeds
...
Metals
>
95
112
Corrugated sheets
128
210
Indigo
>
386
372
168
The outbreak of the war was followed by retrenchment in railway construction, public works, private
house building and in the growth of mills and business firms.
In Bengal during 191^.-1^ agriculwages suffered from the low jute prices and the
poor paddy crop, and also in Bihar and Assam where
The unemployment
the rice harvest was defective.
unemployment.
tural
Wages
24
ECONOMICS OF BRITISH
370
no
rise in
INDIA.
wages
[CH. X.
paid, (except
3 p.
On
its
readiness
to
Reverse
sell
Councils
the
and
3rd August
announced
rates,
if
The sale
it
fell
in 191 5.
and
;f4*89 in
The issue
was stopped
1915.
India
The
Public Finance.
port
of our staples
and 4*82
crores 1915.
and consequent
in the
first
off in
loss of
the ex-
purchasing
In Bombay, in
crisis.
had accumulated heavy stocks of
piece-goods in which a large amount of capital wasf
locked up. Any forced sale by the merchants to pay
their liabilities, would have ruined them.
At the
same time none would venture to buy the raw cotton
at a fair price and save the rj'ots from starvation.
war,
threatened a commercial
particular,
there
CH. X.]
To
371
Government placed
Treasury balances at the disposal
of the trade, through the Presidency Banks, and the
a
large portion of
situation
its
became remarkably
easier in consequence.
the Indian
its
Government
in
heavy
retrenchments in civil
Gross Revenue
Expenditure
Surplus or
The
1913
1914
1915
1916
1917
85-20
8ri5
82-62
96-83
98.85
82-89
82-94
85-26
89-45
98-81
1-78 2*64
+ 7*39
+ -03
deficit
+ 2-31
increase
of
will
two
income
It
ECONOMICS OF BRITISH
372
INDIA.
[CH. X.
Net gold
...
silver
1913
1914
I915
23*33
7-64
1-11
fy
13-03
8'88
4-82
>
66-29
48-99
4327
0-95
45
Rs.
cr.
...
Cotton goods
Woollen
J>
3-85
1-88
Dyes
,,
1-41
71
>>
I4'95
10-52
i6-6i
cwt.
17-93
II
12-85
Rs.
6-43
...
Sugar
...
1916
'
(quantity),
Iron
))
...
viil.
...
cr.
steel
...
Quinine
>
51
-II
4-II
2-77
74
15
12
lb
lbs.
117
89
95
mil. gross
13-89
15*41
18-30
Rs.
89
I-I2
1-38
Rs.
cv.
,,
thousand
...
"
...
9-19
74
^ ...
Matches
976
42
>
...
4-o8
mil. tons
Copper
}>
16
4-29
cr.
I'OI
WAR AFFECTS
CH. X.]
EXPORTS.
EXPORTS.
Jute, raw,
manuf.
Cotloti, raw,
1913
I9I4
1915
6
...
mil. tons
768
.505
...
cr.
Rs.
30*82
12.91
15-64
28-27
25*82
37-98
mil. civt.
10*62
10*34
8*85
Rs.
41-04
33-48
24-92
...
...
...
manuf.
373
cr.
...
12*12
8-OI
9*61
Oii-seeds
...
25*67
14-65
10.12
Raw
...
11.72
7-8i
9-79
...
425
4-75
5-63
hides
Manuf. leather
Indigo,
thousand
...
Opium
ctvt.
Rs.
cr.
...
Coal
Tea
...
mil. tons
...
mil. lbs.
...
cr.
Rs.
Rice
,,
Wheat
...
...
...
flour
mil. tons
cr.
Rs.
io'9
17*1
42
213
2*07
342
1*76
1.47
69
'52
73
72
59
289
300
338
14.97
15-52
19*98
26*6
17*15
15-45
1-56
1*36
2*45
1*2
'7
13-13
8*32
4yH
-^2:21
65
8-44
29-07
1916
ECONOMICS OF BRITISH
374
Under the
stress of
INDIA.
[CH. X.
to
the
increase
by 6
to 1914).
On
England
Silver in
...
India
Gold
we had a note
England
...
32*82 cr
Rs.
9'99
0-13
11*17
Silver in India
16-68
Gold
12-52
issue
:
83*31
The
under contemplation.
money
is
now
BIBLIOGRAPHY.
[In lliis work when any reference is given, it merely indicates
that the reader will find the same subject treated in the work
referred to.
In the following Bibliography, I have put an asterisk
against the books which an economic inquirer will find most
useful.
* Indian Empire.
The first 4 vols, of the new ed. of the
Imperial Gazetteer of India. Vol. Ill is indispensable to the
student of Indian economics, as it has distilled the essence of
a large number of blue-books. Vol. IV. supplies the most
correct and authoritative
information on tfie government,
finance, public works, etc., of India.
(Statistics obsolete.)
* Statement exhibiting the Moral and Material Progress and
Condition of India during the year
presented to Parliament
Sons, London).
(Wyman
Issued annually, about 15 months
after the year under review.
It summarises the contents of all
our periodical returns and reports, and no student can do without it. [The 48th No., for 1911-12 and the 9 preceding years is
very useful Cd. 220].
* Statistical Abstract relating to British India, presented to
Parliament, 49th No. [Code 8157.] Invaluable for reference.
(Wyman Sons, 191 6).
* Statistics of British India, Pt. I. Industrial, Pt. II. Commercial.
(Suptdt. Govt. Printing, India). Replaced, since 1913,
Vol. I. Com., II.
by Statistical Abstract for British India.
Finance, (Govt. Pr., Calcutta.) * Noel Paton's Notes on Sugar
in India, 3rd ed., 191 1, (Suptdt. Govt. Pr.)
Prices and Wages in India, 30th issue, 1913.
(SuperinF'ull of detailed statistics.
tendent, Govt. Printing, India).
Minutes of Evidence... Indian Currency Committee, (Eyre
Spottiswoode, 1893), ^^^^ 7060-11.
* Minutes of Evidence... Indian Currency Committee, Pts. I.
&
&
&
&
II.
376
BIBLIOGRAPHY.
&
Currency and Finance (Macmillan, 1913). Chamberlain Commission Report (Code 7236 of 1914).
Among general works on economics, I have consulted Mill's
Principles (People's ed., 1888), Marshall's Principles, Vol. I.,
Pierson's Principles, 2 vols., Macleod's Theory of Credit, Gide,
1917).
* Indian
1917
(Bombay),
Allahabad.
* Indian Trade Journal, weekly, (Govt.
and two
Calcutta and
Pr., Calcutta.)
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