Tag: Dadabhai Naoroji

  • Dadabhai Naoroji – 1893 Comments on East India Revenue Accounts

    Dadabhai Naoroji – 1893 Comments on East India Revenue Accounts

    Below is the text of the speech made by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 20 September 1893.

    Forty years ago, when I first spoke upon this question, I expressed my faith that the British people were lovers of justice and fair play. After those 40 years, and with an intimate acquaintance with the people of this country, and a residence of 38 years, I repeat that faith. I stand here again in that faith, ten times stronger than ever it was before—that the British people are lovers of their Indian subjects—and I stand here in that, faith hoping that India will receive justice and fair dealing at the hands of this Parliament.

    I might also add, Sir, that from that time to the present I have always held that the British rule is the salvation of India. A higher compliment I cannot pay to the British rule. It has done a great many good things, and has given new political life to India. If certain reforms that can be made, and about which there was no difficulty, are brought about, both England and India will be blessed. I do not want to occupy much of your time, so I will not say more on this point.

    I acknowledge with the deepest gratitude that so far, in several respects, though not in all, the English rule in India had been a great and an inestimable blessing. With regard to the Amendment I propose, in which I ask that a Royal Commission be appointed in order that we may come to the bottom of many questions of grievances, and especially into the principle and policy of the British rule as it exists at present, I may just quote a few words that were uttered by the right hon. Gentleman the Prime Minister only a few days ago in connection with the question that is before us. He says— I must make an admission. I do not think that in this matter we ought to be guided exclusively—perhaps even principally—by those who may consider themselves experts.

    It is a very sad thing to say, but unquestionably it happens not infrequently in human affairs, that those who ought, from their situation, to know the most and the best, yet from prejudice and prepossessions know the least and worst. How far that is applicable to the Indian administration I am not undertaking to say; that is exactly what the inquiry ought to settle—whether the views expressed by the Anglo-Indian officials are the right views, or whether they are mistaken in the way the Prime Minister thinks they may be. He says, again— I certainly, for my part, do not propose to abide finally and decisively by official opinion. Independent opinion—independent but responsible—is what the House wants in my opinion in order to enable it to proceed safely in the career upon which, I admit, that it has definitively entered. And that is exactly what I appeal to.

    In the matter of the difference of opinion that exists between the Indian officials on the one hand and the native opinion on the question it is absolutely necessary—especially in the case where this House cannot in any way watch the taxes and the taxpayers, which it cannot at a distance of 5,000 miles—it is absolutely necessary that there should be some independent inquiry to satisfy this House and the public whether the administration is such as it ought to be.

    I hear that grumbling has begun to come from India itself. Only the other day, the 15th June, a telegram appeared in The Times saying that there seemed to be little doubt that all classes of India would soon join in demanding a strict and impartial inquiry into the excessive cost of the Indian establishments and the contributions levied on the Indian Treasury by the War Office, the Admiralty, and the Foreign Office; it was universally felt that India has been treated very unfairly in these matters, and that any attempt to stifle or delay the inquiry would cause much bitterness and discontent. Now, this is not all that has to be inquired into.

    I say that the whole policy and principle of the Budget, and the whole administration requires an overhauling. The last inquiry we all know took place in 1854. Since then there has not been an inquiry of the same kind. When we see the Prime Minister himself acknowledging only a few weeks ago, on the 30th June, that the expenditure of India, and especially the military expenditure, is alarming, and when we see also the Finance Minister telling us in his last speech— The financial position of the Government of India at the present moment is such as to give cause for apprehension, I think it will be admitted by the House that the time has come when it is exceedingly necessary that some fair inquiry ought to be made into the state of affairs.

    Well may the Prime Minister say that the expenditure is alarming, when we see that in 1853 and 1854—when the last inquiry took place—the annual expenditure of India was £28,000,000, whereas now in 1893 and 1894, excluding everything connected with public works, railways, &c, we have an expenditure of Rx68,000,000, which means an increase of 140 per cent. upon the expenditure of 1853 and 1854 in 40 years. The question is, whether this expenditure is justifiable or not?

    No inquiry has been made during these 40 years, and it is time, with such an additional expenditure, that full inquiry ought to be made. And then we know, at the same time, that from the beginning of this century to the present day there has been a constant wail and complaint that India is poor; and when we remember that the latest Finance Ministers emphatically laid down that it is the poorest country in the world, even compared with Turkey in Europe, I think it will be enough to satisfy the House that there ought to be a proper inquiry. I will now take a few illustrations of the principles on which the Budget, as it were, is built up, and consequently which also is an indication of the principles and policy of the whole administration.

    I have here the Colonial Office built at an expense of £100,000; every farthing of which is paid from the British Exchequer. I have the India Office built at nearly or about £500,000; every farthing of which is taken out of the Indian Exchequer from the Revenue of the poorest country in the world. The Colonial Service is given in the finance accounts as about £168,000; every farthing of which is paid from the British Exchequer. The Indian expenses or establishments given in the India Office expenditure is something like £230,000; every farthing of which is taken from the Indian Exchequer.

    But there is one item which, small as it is, is peculiarly indicative of the curious relations between England and India. I refer to the examinations that take place in England to send out young men for service in India, where they get a splendid career. They inflict upon us, rightly or wrongly—I am not discussing the justifiableness of such an injury—injuries of six different kinds. They take the bread from the mouths of the natives; they take away from the natives the opportunities of service in their own country which they otherwise would have. That is the material welfare we lose.

    They take away also esteem and the wealth of experience, because when an English official of 20 or 40 years’ experience leaves the country all his accumulated wisdom is utterly lost to us, and we do not get the benefit of the wealth of that wisdom which we have a right to from the experience of those who are serving in India. The result of that again is that we have no opportunity of exercising our faculties, or of showing our capacity for administration. So that I think, as a law of nature, our capacity is stunted, we lose and wither, and we naturally become, as it were, incapable in time of showing that we have capacity for government. And what follows? You add insult to injury.

    After stultifying our growth, our mental and moral capacity, we are told that we are not capable. Well, Sir, I cannot, of course, enter into the details of these various injuries we suffer; but I say that here are these English youths who are to go out to India for a splendid career, and yet for their examination and further education in this country India must be charged £18,000 a year. This is a significant example of the relations that exist between India and England.

    Lastly, I will give one more authority. Lord Hartington has put the case very significantly. He once said— There can, in my opinion, be very little doubt that India is insufficiently governed. I believe there are many districts in India in which the number of officials is altogether insufficient, and that is owing to the fact that the Indian Revenue would not boar the strain if a sufficient number of Europeans were appointed. The Government of India cannot afford to spend more than they do on the administration of the country; and if the country is to be better governed that can only be done by the employment of the best and most intelligent of the natives in the Service. I want to point out this as an illustration of the relations that subsist between England and India.

    I need not say anything about the saving of £2,000 in the salary of Lord Kimberley, by appointing him also as the President of the Council. Much has been said on this point, so I will not add to it. By one stroke of the pen about 10,000,000 rupees additional burden is put on the poor taxpayer of India by giving a British exchange of 1s. 6d. to the European officials. This means this, that the starving are to be starved more in order that the well-fed may have their fill.

    I think the House will ask whether such should be the relations between the two Revenues? To come to the next proposition. Another illustration of what I am saying is charging India with half the expense of the Opium Commission. I will not say much upon that subject, because I find that almost the whole of the English Press, as well as the Indian Press, have condemned that proposal, and have used strong words, which I should be unwilling to use—that is to say, the English Press has used very strong words against that proposal, and I will only use the softer and milder word—that it is unjust.

    It was the English people, in the interest of what they consider their own morality, who proposed that this Commission should be instituted, and it must be remembered that it was this House that had settled that such a Commission should be given. Under such peculiar circumstances, to ask the people of India to pay half of this expense is anything but just. And what is still more striking is this—that in 1870 the same question was before this House, and then the right hon. Gentleman the Prime Minister, and in 1891 the Leader of the House (Mr. W. H. Smith), laid it down distinctly that India should not suffer in the slightest way; that unless the House was prepared to give to India the surplus of £6,000,000 of 1870 to make up the deficit of every year in Indian Revenue, neither the Prime Minister nor the Leader of the House in 1891 (Mr. W. H. Smith) would proceed any further, or would listen to any representation about it. After such just protest against any movement of that kind, that the Prime Minister should now agree to this proposition is, I must confess, altogether beyond my comprehension.

    The next illustration, and a very significant one, is one upon which I need not dwell long, because only a short time ago a Debate took place in the House of Lords on the subject of military expenditure, when. Lord Northbrook, who has been Viceroy of India; the Duke of Argyll, who has been a Secretary of State; Lord Kimberley and Lord Cross were present, and it was the unanimous opinion of their Lordships that the Treasury and the War Office had treated India very unjustly in respect of the military expenditure and upon expeditions.

    I will read one extract from Lord Northbrook to show the manner in which India is treated in that respect. The whole Debate is worth a very careful perusal, and if hon. Gentlemen of this House will peruse that Debate they will get some idea of what highest Indian officials think of the relations of England with India. I will read one extract of Lord Northbrook’s speech, which is very significant.

    He said— The whole of the ordinary expenses in the Abyssinian Expedition were paid by India, only the extraordinary expenses being paid by the Home Government. I may interpose that, had it not been for the agitation I raised on that occasion, there is no doubt that the Indian Government would have been saddled with the whole of that expense. As it is, they had only to pay the ordinary expenses, and the British Government to pay the extraordinary expenses, though we had nothing to do with that. Lord North-brook goes further.

    He goes on to say— The argument used being that India would have to pay her troops in the ordinary way, and she ought not to seek to make a profit out of the affair. But how did the Home Government treat the Indian Government when troops were sent out during the Mutiny? Did they say—’We do not want to make any profit out of this?’ Not a bit of it. Every single man sent out was paid for by India during the whole time, though only temporary use was made of them, including the cost of their drilling and training as recruits until they were sent out. I think this is a significant instance of the relations between England and India, and I hope the House will carefully consider its position.

    In regard to the injustice of the military expense, even a paper (The Pioneer), which takes the side of the Government against the Indians generally, has expressed the opinion that the sum now imposed is an injustice, and that the expense is a large item annually increasing. It gives the whole—I think £2,200,000 in all—and then says— This sum is a terrible drain on the resources of India, and might well be reduced. One more significant instance of these things. When the Afghan War took place it was urged upon this House that it was an Imperial question; that the interests both of England and India were concerned in it; and it was right and proper that this House and this country should take a fair share in the expenditure of that war.

    The right hon. Gentleman the Prime Minister accepted the view which Mr. Fawcett put forward, and he said— In my opinion, my hon. Friend the Member for Hackney has made good his case. And he says again that it is fair and right to say that, in his opinion, the case of his hon. Friend the Member for Hackney is completely made good, and that case, as he understood it, had not received one shred of answer.

    Well, Sir, the case was then that this war had taken place in which both India and England were equally interested; that as it was an Imperial question, and not altogether an Indian question, a portion of the expenses ought to be defrayed by this country. And the right hon. Gentleman the Prime Minister, true to his word, when he came into power, did contribute a certain portion on that ground. We might have expected that he would have contributed half of it, but he contributed nearly a quarter; out of an expenditure of £20,000,000 or £21,000,000 he contributed from the British Exchequer £5,000,000, for which I can assure the House we are most grateful, not so much for the sake of the money, but because the principle of justice was admitted. It was admitted that this country had something to do with India; and if it has its rights, if it draws millions and millions a year from India, it has also its duties. And the first time this was ever admitted was on the occasion I have referred to by the right hon. Gentleman the Prime Minister. We regard it as a great departure in the administration of the country.

    Now, I urge that there is a large Military and also Civil expenditure upon Europeans. It is avowedly declared—over and over again we have been told—that a British Army and some British Civil Service in India are necessary for the maintenance of the British power, as well as in the interests of India. That in order to maintain British power there must be a certain amount of British Army nobody denies; but the question is whether the employment of this British Army is entirely for the interests of India alone, or whether it is not also necessary for the maintenance of the British power in India? In other words, are not the two countries equal partners in the benefit to be derived from the European Services; and, if so, should not England pay for this as well as India? I urge the consideration of this upon the House.

    I say that part of the military expenditure is for the interests of the British Empire; that the maintenance of this Army involves the interests of Great Britain as well as India, and that both should equally share the expenditure for the maintenance of the British power in India and for the protection of British interests there. I may have to say a great deal upon this subject, but considering the time we have at our command I will be very brief. I would only say this: that on the discussion which formerly took place the right hon. Gentleman the Leader of the Opposition took an opposite view to the view held by the right hon. Gentleman the Prime Minister. Among the other reasons this was one of the reasons urged—that if India had belonged to an independent Ruler, like the Mogul, it would have been necessary for him to have entered into the war precisely as the Indian Government had done, and for precisely the same objects.

    There was no doubt, therefore, that Her Majesty’s Government were following out a right line of policy in throwing the whole of the cost upon Indian finance. For these reasons he gave the Government his cordial support—that is to say, for throwing the whole expenditure on India. The right hon. Gentleman, however, forgets altogether that when the Mogul was the Emperor, and when the natives were a self-governing people, every farthing spent in the country on every soldier returned back to the people, whilst at the present time, in maintaining a foreign distant Power, you are drawing considerable amounts of money from the Indians for the Europeans, every farthing of which is completely taken away from the people under the present circumstances. That makes it entirely different.

    When a foreign domination compels the people to find every farthing for the sinews of war, then the money does not go back to the people as it would under, a Home Ruler. That is not the position of Britain. Britain is 5,000 miles away from India, and sends thousands of Europeans and foreigners over to India in order to support her power. We have to find every farthing of the cost, and then we are told it is only what the Mogul would have done. It is as different as the poles, as the House will recognise.

    It may be remembered that a few months ago a Petition was presented to this House from a public meeting in Bombay. In the Despatch quoted from the Government of Lord Lytton to the Secretary of State, he put the question in such a form that I shall be perfectly content to leave his words before the House. After making certain preliminary remarks, the Despatch goes on— We are constrained to represent to Her Majesty’s Government that, in our own opinion, the burden now thrown upon India on account of the British troops is excessive, and beyond what an impartial judgment would assign, considering the relative material wealth of the two countries and the mutual obligations that subsist between them.

    All that we can do is to appeal to the British Government for an impartial view of the relative financial capacity of the two countries to bear the charges that arise from the maintenance of the Army of Great Britain, and for a generous consideration of the share to be assigned by the wealthiest nation in the world on a dependency so comparatively poor and so little advanced as India. I hope these few words will bear weight. I do not ask for a share of the Military and Civil expenditures of the European Services simply as a beggar on account of being poor, though that is a great hardship; but I ask it on the ground of justice, on the ground that our interests and British interests are practically identical, and that both have an interest in maintaining the British rule in India. The British people have a great advantage, and in justice to the Indians they should be willing to pay their share.

    Now, I wish to say a little about the administration. I will say it in a very few words. As an illustration, may I remind the House that there are 37,000,000 people in the United Kingdom, and that an Income Tax of 1d. in the £1 produces above £2,250,000. India has a population of seven or six times the number in Great Britain, and yet on the 1d. in the £1 she can hardly pay, I think, £200,000. If this be not an indication of the condition of the people, of India I do not know what else is.

    A short time ago I heard with very great interest the Statement on the Budget by the right hon. Gentleman the Chancellor of the Exchequer. He spoke in very warm terms of the marvellous way in which the Income Tax increased in this country, although merchants and traders were complaining of a very bad state of trade. The Chancellor of the Exchequer rejoiced that, notwithstanding this, the Income Tax was jumping on year after year. I was very anxious to hear his explanation of this paradox. I would like to give a little explanation upon it. I do not know whether it may be an exact statement of the facts, but still I will venture to give it.

    Under ordinary circumstances, it is estimated that Britain draws something like £20,000,000 a year from India. I know that much more is said by some people, but I want to put it at the lowest. On the testimony of one gentleman who is generally antagonistic to the Indians—namely, the late Member for Oldham (Mr. Maclean)—£20,000,000 is about the amount. Therefore, we may take it that something like that sum is annually drawn from India. I would welcome this annual wealth being taken from India by you if we benefited as well as you. I take it as a matter of fact that with all this wealth flowing into Britain the Income Tax is increased.

    I think if the right hon. Gentleman the Chancellor of the Exchequer can see his way to agree with me on this point he will show a greater sympathy with India in his dealings with the financial aspect of the Empire. I will give another illustration which will bring the matter home to the mass of the English people themselves. In India you have a vast country inhabited by people who have been civilised for thousands of years, and capable of enjoying all the good things of the world.

    They are not like the savage Africans, whom we have yet to teach how to value goods. But here you have 300,000,000 people to trade with, and for 100 years you have ruled them administratively by the highest-paid Service in the world. What is the result? What does England get in the shape of commerce? England sends her exports to various countries, and there are countries which shut their doors to her trade.

    But in India the trade is free; it is entirely under the control of the British themselves, and yet what profit do all the masses of the people receive? Very little. The total export of British produce to India is not worth 2s. 6d. per head per annum. If India were prosperous, if you allowed India to grow and make use of its own productions, then if you could export, say, £1 per head per annum, you would have a trade in India as you have not now in the whole world. It is a great loss to you and to us.

    If the present principles of administration were reformed and changed, and brought into a more natural condition, the result would be that the trade of England would grow to an extent of which we have no conception. You would have a market with 300,000,000 people, whereas, at the present time, you are spending hundreds of thousands in finding markets which will produce nothing approaching this. But here is a market at your own doors, and you are not able to sell of your produce more than 2s. 6d. a head per annum on the population.

    We know that in Native States native industry is prospering under the protection of British supremacy. The Native States have not foreigners going in and eating up their productions. They are gradually progressing in prosperity. I hope the time may come when important changes will be made in the administration of the country. I will not go into any further illustrations, but I would remind the House that Lord Salisbury has said what this policy is in the most significant terms. He has expressed it not in the hurry of a speech, but in a deliberate Minute made as Secretary of State for India. I hope his words will be digested by the House. He thinks that India only exists to be bled, and that now only those portions should be bled which are capable of giving blood. He says— As India must be bled, the lancet should be directed to the parts where the blood is congested, or at least sufficient, not to those which are already feeble from the want of it.

    An hon. MEMBER Where does he say that?

    MR. NAOROJI It is in a Minute made by Lord Salisbury in connection with the Famine Commission Return, No. 3,086–1, 1881, page 144. Those singular words cover the whole present policy of administration, and I do not think I need add anything to them. I will use a few words of our Prime Minister, and of other great and eminent statesmen, as to what sort of relationship there should be between England and India. The right hon. Gentleman the Prime Minister on one occasion, in 1858, quoted these words of Mr. Halliday approvingly— I believe our mission in India is to qualify the natives for governing themselves. But I would lay most stress on the words he recently expressed in this House in connection with the Irish Home Rule Bill.

    He says— There can be no nobler spectacle than that of a nation deliberately set on the removal of injustice, deliberately determined to break not through terror, and not in haste, but under the sole influence of duty and honour, determined to break with whatever remains still existing of an evil tradition, and determined in that way at once to pay a debt of justice, and to consult by a bold, wide, and good act its own interest and its own honour. I appeal to no other sentiment of the British people, but leave it to their justice. It is necessary, in putting this matter properly before the House, to show how the present principles of administration in India are destructive.

    I appeal, therefore, to the Government, and say that an inquiry is absolutely necessary to ascertain whether it is or not that the administration of India is based upon a principle not only destructive, but very much mistaken. This is my view. I appeal to this House to give us an opportunity of proving that the present system of administration is an unfortunate one, and that certain changes of reform would be a blessing. With regard to the extract from Lord Hartington’s speech, which I have read, I may say that that clearly shows that India is not properly governed. It is not sufficiently governed, for you cannot have the requisite number of men to govern it except from the Indians.

    I will read a few words from a speech of Mr. Bright’s which are very expressive of our opinion regarding Indian government. He said— You may govern India, if you like, for the good of England, but the good of England must come through the channels of the good of India. This expresses what is desired by the people of India.

    Mr. Bright further says— There are but two modes of gaining anything by our connection with India: the one is by plundering the people of India, and the other by trading with them. I prefer to do by trading with them. But in order that England may become rich by trading with India, India itself must become rich. He also says— We must in future have India governed, not for a handful of Englishmen, not for that Civil Service, whose praises are so constantly sounded in this House. On this point and in these words you have the whole Indian trouble, what the principle of the administration ought to be, and what alone will benefit both England and India.

    I will just read a few words by Sir Stafford Northcote when he was Secretary of State; I have no hesitation in saying that he endeavoured to do the best for us. He tried his best to see what justice he could do to the Indians, and he expressed himself in words like these— If they were to do their duty towards India they could only discharge that duty by obtaining the assistance and counsel of all who were great and good in that country. It would be absurd in them to say that there was not a large fund of statesmanship and ability in the Indian character. I might quote something similar by the hon. Member for Kingston (Sir E. Temple).

    Sir Stafford Northcote further says— Nothing could be more wonderful than our Empire in India, but we ought to consider on what conditions we held it, and how our predecessors held it. The greatness of the Mogul Empire depended upon the liberal policy that was pursued by men like Akbar availing themselves of Hindu talent and assistance, and identifying themselves, as far as possible, with the people of the country. He thought that they ought to take a lesson from such a circumstance.

    Now, I do not think I need say more. I think I have made out a primâ facie case that the Indian problem is a very serious problem. As Sir William Hunter once said, it is a problem which might in 40 years become an Irish problem, but 50 times more difficult. I hope and trust that time will never come, and that such a contingency will never arise. I hope the time is coming when the natives themselves, educated and learned men, will have a voice and due share in the government of India. Everything is promising. If the statesmen of to-day will only overhaul the whole question and have a clear inquiry by independent and responsible men acting with English sense and honour and justice, then the time is not far distant when both England and India will bless each other.

  • Dadabhai Naoroji – 1893 Comments on the Hyderabad Plot

    Dadabhai Naoroji – 1893 Comments on the Hyderabad Plot

    Below is the text of the question asked by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 21 August 1893.

    MR. NAOROJI (Finsbury, Central) In the absence of the hon. Member for Elgin and Nairn, I beg to ask the Under Secretary of State for India whether he is now aware that a person named Jowad Hussain has been arrested in Hyderabad, Deccan, on a charge of plotting to murder the British Resident, Mr. Plowden, or to blow up the Residency with dynamite; and that the arrest is stated to have been in consequence of the production to the Nizam by Mr. Plowden of a letter purporting to warn him that such a plot existed; whether there is any ground to believe in the existence of such a plot; and, if so, are any other persons stated to be implicated in it; what was the cause of the banishment from Hyderabad, on 15th ultimo, of the Political and Financial Secretary, the Nawab Mohsin-ul-Mulk, Mehdi Ali; and having regard to the circumstance that similar designs on Mr. Plowden’s life when he was Resident at the Court of the Ruler of Cashmere were attributed to that Ruler, and were without inquiry afterwards put forward as one of the causes officially assigned for his deposition, Her Majesty’s Government will direct that a full and careful iuquiry be made by some independent authority into the facts connected with the alleged plot, and the other recent events in Hyderabad which have been brought to their notice, so as to insure that no injustice is done to the Nizam’s Government?

    THE UNDER SECRETARY OF STATE FOR INDIA (Mr. G. Russell,) North Beds. As regards questions 1, 2, and 3, the following information has been received by telegraph from the Viceroy:— One Jowad Hussain, arrested in Hyderabad, but not on Resident’s initiation, is principal person charged with complicity in plot to murder Resident. Facts not yet elicited, but Departmental inquiry is being held by two Judges of Nizam’s High Court. Mehdi Ali resigned and left State under Nizam’s orders in consequence of implication in one lakh of rupees bribery case. Complete correspondence regarding this incident posted 13th instant. In view of the fact that an inquiry into the alleged plot is now being held by two Judges of the Nizam’s High Court, the Secretary of State thinks it unnecessary, at the present stage of affairs, to order a separate inquiry to be held.

  • Dadabhai Naoroji – 1893 Speech on East India Currency

    Dadabhai Naoroji – 1893 Speech on East India Currency

    Below is the text of the speech made by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 8 August 1893.

    I wish to offer a few observations. What was the first necessity from which this agitation began? That there ought to be a gold currency or a stoppage of coinage. There are two considerations, and India has one peculiar consideration, and that is that it has to remit to this country, whether rightly or wrongly, a certain sum of money yearly—namely, £19,000,000 in gold. Whatever you make of silver in India, as far as the people of India are concerned, they do not benefit in the slightest way in the remittances to this country, because they have to remit a certain quantity of produce, which ought to be able to provide £19,000,000 worth of gold in order to pay for the Home charges. Therefore, any effort made of changing or tampering with the currency, or any other plan devised, will have no effect whatever on the necessity of sending a certain quantity of produce according to the price of gold.

    If gold rises in value, they (the Indian people) will have to send so much more produce; if it falls, they will have to send so much the less, be the proportion of silver what it may in India. In that respect the argument, and the principal argument, held out by the currency people and those who advocated the restriction of silver coinage—namely, that it would be a benefit to the people in India to restrict the coinage—is not borne out by the facts. Nothing of the kind will happen; the people of India will have to send a certain quantity of produce in accordance with the price of gold. So far, therefore, the unique political position of India, which has caused all this difficulty and the embarrassing of the Indian Government, is not in the slightest way improved by the plan the Government have adopted. The agitation began from ​ the loss that the Europeans in India began to suffer for their remittances to this country. No such agitation arose between China and England, or any other country which had not to make any compulsory and political remittances in gold.

    The original agitation in favour of the appreciation of silver began with the European servants, who desired to have some change in order that they should receive some higher exchange for their remittances than the value of silver allowed. Now, on that point the Government of India made up its mind. The Government of India wanted to give some higher or fixed exchange to the Indian officials for their own remittances only. Now, that was bad enough, and from this place I have complained of that. The Government of India have not paid the slightest consideration to the effect it would have on the people of India. But what is the result of the new arrangement? Here is a rupee artificially made worth 1s. 4d., whereas its real worth may be 1s., 1s. 1d., or 1s. 2d. The change, or whatever the difference will be, is not merely a gain to these Indian officials for that portion of their salaries which they have to remit to this country, but it is an advancement of their whole salary.

    And not only all the Europeans, but all the native servants, have a higher value rupee paid for their salary in place of that which financially the price of silver would admit. The result is, therefore, that this would-be remedy is a pure loss to the unfortunate taxpayer of India, for he will have to find so many more valuable rupees in order to pay every servant so much more than his salary is. Suppose my salary is worth 100 rupees, I would receive 100 rupees, the artificial value of which will be 110 rupees. And this will apply to all salaries. In that way, therefore, there would be an extreme disadvantage, and the wretched taxpayer will have to find the difference. Next, suppose you take a man who has to pay an assessment of 10 rupees, and to pay those 10 rupees to the Government he has to sell part of his produce. Now, in order to pay the now 10 rupees, he will have to part with 10 to 16 per cent, more produce than he formerly did.

    In every way, therefore, it is the taxpayer that has to suffer the loss arising from the mistake that the Government have made in adopting this policy. The Government is fortunate in one respect: that the injury that will be done through their plans has been, to a certain extent, modified by what is now happening in America, as many mines have been shut up. In America now there is also a chance of abolishing the Sherman Act, and the result of that will be, of course, a fall in the price of silver. But, on the other hand, if the repeal of the Sherman Act stops the American miners from working their mines, that will save India from the mischief. Our fate depends on the action of the United States. You may bring forth any quantity of abstract argument on one side or the other. The common sense of the matter is that the plan now adopted will simply be an addition to the burdens of the taxpayer; and unless it fortunately happens that the price of silver rises by reduction in its production the future of the Indian taxpayer will be certainly very terrible indeed. I want to say that the chief defect of this plan is that it was not necessary at all; that even from the Government point of view it was not necessary; but that as the plan is taken the whole effect of it is that the Indian taxpayer will have to suffer a great deal of loss in order to carry it out, unless he is saved by the rise in the price of silver.

    There are many fallacies running about—we heard one from the right hon. Gentleman the Member for Sleaford (Mr. Chaplin)—to the effect that the balance of trade is in favour of India, and that fallacy has done more mischief and harm to India than any other thing. I cannot now enter into a discussion of it, but I hope to be able to show some time that nothing is further from the fact than to suppose there is a balance of trade in favour of India. I do not want to take up more time, but I want to sum up that the result of the present system will be that the burden of taxation upon the people of India will be very largely increased, unless the silver kings of the United States diminish their production of silver, and allow the price of silver to rise. But all these artificial methods adopted by Government for raising the price of silver will only complicate the currency; and that the Front Bench should be ready to defend a tampering with the currency in India is, to my mind, a very sad thing. ​

    I will make just one remark with reference to the position of India in connection with the Front Bench. India under the Crown, in her relations with the Governments here, whether Conservative or Liberal, has, in one respect, been very unfortunate as compared with the time of the rule of the Company. When India was ruled by the Company the Company came before the House as before an independent tribunal. Now the Front Bench and the India Office are so much associated and identified that the Front Bench is put in the false position of defending the despotic, secret, and irresponsible India Office in everything they do. The result is, India is not able to get that redress and that independent judgment of an independent tribunal which she got in the time of the Company. This is made much worse by there being no periodical overhauling of the Indian Administration, and the mischief may go on increasing, till, perhaps, a day may come when it is too late to mend. It is of the utmost importance that the affairs of the India Office and the Government of India ought to be examined periodically; for this simple reason: that the House cannot follow the business or events of India from day to day.

    The House must have special occasions to study and understand Indian affairs, pass judgment upon them, and introduce necessary reforms. Why should not the Front Bench, as an independent body, sit in judgment upon the India Office, instead of always sitting there in defence of the India Office, no matter whether right or wrong? It is a false position, and injurious to India. We believe that the Government have made a great mistake in interfering and tampering with the currency unnecessarily. We know gentlemen on the Front Bench are against such tampering with it; but they are put in a false position, and they have to defend the very thing they would otherwise not defend.

    There is no reason whatever why the currency of India should be tampered with while the currency of England should not be tampered with. I hope some plan may be devised by which the Government in England may become an independent tribunal in reference to the conduct of the Government of India, and may hold the Indian Government in check, and control them instead of defending them ​ in everything they do. The present system of Indian administration is in several respects very injurious to India, and whatever is injurious to India must and will be injurious to England.

  • Dadabhai Naoroji – 1893 Comments on Indian Opium Revenue

    Dadabhai Naoroji – 1893 Comments on Indian Opium Revenue

    Below is the text of the comments made by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 30 June 1893.

    MR. NAOROJI (Finsbury, Central) said, he was not speaking on this question now for the first time. He had been studying it for years, and as far back as 40 years ago he had edited a pamphlet against it. He had studied it from all points of view, and he had come to the conclusion that the opium traffic was a curse both for England and India. In this country opium was declared to be a poison by Act of Parliament, and its sale was under very stringent restrictions. How could that which was a poison here be harmless in other portions of the Empire? As far as he was concerned, he could not believe in the sincerity of those who said that opium used in moderation was not injurious. The question of opium, however, was nothing. It was the mere fringe of the great question of Indian administration under the present system. The pity was not only that time would not allow, but that the subject would not permit, of their entering into the great question which caused all the mischiefs and evils from which India was suffering. These problems—the opium question, the Salt Tax question, and kindred matters—were constantly cropping up, but this House was never able thoroughly to grapple with them. And they never would be properly grappled with until the advice of John Bright was adopted, that statesman having said— That if a country be found possessing a most fertile soil, and capable of bearing every variety of production, and that, notwithstanding, the people are in a state of extreme destitution and suffering, the chances are that there is some fundamental error in the government of that country. He (Mr. Naoroji) maintained that so long as the House did not set itself to find out this fundamental error and endeavour to remove it, all these minor questions, which must be regarded as the fringe of the great problem, could never be dealt with satisfactorily.

    To bring the matter to a practical issue, why could not the Commission be instructed to go into the whole question somewhat in the way in which inquiries took place every 20 years under the rule of the East India Company? For then, and then only, would this House understand the mischiefs under which India was suffering; then, and then only, would they know how it was that, after 100 years of the rule of the best administrators, and the most highly-paid administrators, India should be the poorest country in the world. He could adduce testimony from the beginning of the century down to the present time to show that there was nothing but poverty in India. That could not be satisfactory to England, who desired that India should appreciate British rule, though how that could be expected he could not understand, seeing that an income of £6,000,000 or £7,000,000 a year was made by poisoning another great people, and that taxes—the most cruel that had ever been conceived in the whole history of mankind, such as the heavy Salt Tax—were imposed. Such should not be the method of British administration, and such should not be the result of British rule. There was no reason why it should be so. If the existing errors and evils were discovered and grappled with, he had no doubt that India would bless the name of British rule. He would ask the Prime Minister, therefore, to enlarge his Amendment, and to declare in it that the Royal Commission should inquire into the whole condition of India.

  • Dadabhai Naoroji – 1893 Speech on Surwur Jung

    Dadabhai Naoroji – 1893 Speech on Surwur Jung

    Below is the text of the speech made by Dadabhai Naoroji, the the then Liberal MP for Finsbury Central, in the House of Commons on 30 March 1893.

    In the absence of the hon. Member for Elgin and Nairn, I beg to ask the Under Secretary of State for India whether he is aware that the present British Resident at the Court of Hyderabad has been accepting as intermediary between himself and His Highness, the Nizam, a person of notoriously blemished antecedents and character, and well known to be hostile to the responsible Minister of State; whether he is aware that this person, named Surwur Jung, has, under the countenance of the Resident, succeeded in obtaining for himself all the real power in the Hyderabad State and completely paralysing the Ministry; whether he is aware that an action for defamation has been under trial before a subordinate of the Resident against the printer of a libellous pamphlet, of which Surwur Jung has been practically admitted to be the author, the complainant being the Home Secretary to the Hyderabad State; that Surwur Jung has compassed the suspension of the complainant from his office while the case is sub judice, has prevented him from having access to his own witnesses, has supported the defence by vast sums of money taken from the Public Treasury and from the trust funds of minors under his charge, and has established a reign of terror amongst witnesses whereby the course of justice is gravely prejudiced; whether he is aware that the complainant’s counsel has presented a Petition to the Resident’s Court, setting forth the contempts of Court which have been thus committed, but that the Resident has neither prevented nor punished such contempts; whether he is aware that during all the period covered by these matters the Resident has been receiving Surwur Jung in private conference at the British Residency, and that by means of the influence thus conferred upon him, Surwur Jung has now succeeded in extorting 100,000 rupees from the Minister by false pretences, with which offence he now stands charged before His Highness the Nizam; and whether, in the interests of public justice, Her Majesty’s Government will urge on the Government of India the necessity of Surwur Jung being removed from the influential position which he has acquired under the Resident’s support?

  • Dadabhai Naoroji – 1893 Speech on East India

    Dadabhai Naoroji – 1893 Speech on East India

    Below is the text of the speech made by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 28 March 1893.

    The hon. Member for Hull told us in very emphatic language of the sufferings of the Anglo-Indian Services in India. I do not blame him for that. Not only he, but even the Viceroy in his long speech went over the same ground, and in as emphatic a manner as possible portrayed what he called the sufferings, and hardships, and cruel wrongs of the Anglo-Indians, and in every way possible emphasised the demands of the Anglo-Indian servants. But it never occurred to either the hon. Member for Hull or the Viceroy that there is another side to the picture. And if these Anglo-Indians are suffering, there are also other people who are suffering far more. What is the position of the Indians themselves from the fall in this exchange? Have the hon. Member or the Viceroy, or any of the English gentlemen who are talking about this subject, given a single thought to the effect which is being produced upon the people of India? “Certainly not,” as I suppose you would say. [Cries of “No!” “Certainly!” and “Oh! oh!”]

    Here is this long statement by the hon. Member for Hull, in which he has portrayed in very strong terms the sufferings of the Anglo-Indian servants, but he has not said one single word as to what the Indians them-selves have suffered. And not only the hon. Member, but the Viceroy also—as I have already said—emphasised as strongly as possible the sufferings, and used all the strong words to be found in the English vocabulary with regard to the hardships of the English servants, but in these long speeches there has not been one word of pity or sympathy with regard to those from whose pocket whatever is demanded has to be paid and what these people themselves have already suffered. Lord Macaulay has said that “the heaviest of ​ all yokes is the yoke of the stranger.” [“Oh, oh!”] So long as this House does not understand that the yoke as it, at present exists practically in India is “the heaviest of all yokes,” India has no future, India has no hope. [Loud cries of “Oh, oh!”] You may say “Oh, oh!” but you have never been, fortunately—and I hope and pray you may never be—in the condition in which India is placed in your hands. [“Oh, oh!”] Wait a little, please. The saddest part of the picture is that while the British people and the British Parliament do not wish and have not willed that India shall be governed on the principle of “the heaviest yoke is the yoke of the stranger,” yet it is so. It is distinctly laid down what the policy is to be, and this Parliament has actually willed 60 years ago that the rule over India ought to be the rule of justice, righteousness, beneficence. That was repeated again in the great Proclamation of 1858. But what has been the actual practice? What has been done by those who have been thus instructed? The actual practice has been to make this yoke the heaviest yoke—”the yoke of the stranger.” [“Oh, oh!”] Has the hon. Gentleman who cries “Oh!” ever been in such a condition as we are? If he has not he can never understand it. I pray that you may never feel that yoke You have been free from it ever since the time when the Normans became assimilated with the English people [Cries of “Question!”] From that] time forward you have been a free people, and I hope and pray you may ever remain so. But, at the same time, it is difficult for you to even surmise the condition of the people of India.

    If it is within your power to make this rule a rule of justice and honour, and at the same time beneficent and profitable, both to yourselves and to us. But I cannot now enter further into that point. The hon. Member for Hull introduced the subject of the poverty of the people of India and treated it with a light heart. That is exactly the question that has to be fought out by me upon the Floor of this House, but the time is not now. I cannot now enter into a Debate upon that point, because you, Mr. Speaker, would very properly call me to Order. I can only intimate my point, and give you some ​ high testimony upon that subject. I will not go into my own reasons, but only quote you the testimony of some of the highest financiers of India. First of all, a Viceroy like Lord Lawrence has distinctly stated in those words—it was in the year 1864—

    “India is, on the whole, a very poor country. The mass of the population enjoy only a scanty subsistence.”

    Then, again, in 1873, he repeated his opinion before the Finance Committee—

    “That the mass of the people were so miserably poor that they had barely the means of subsistence. It was as much as a man could do to feed his family, or half feed them, let alone spending money on what might be called luxuries or conveniences.”

    Thou, coming down to a more recent date—to the days of Lord Cromer—these are the words of Lord Cromer in 1882—
    “It has been calculated that the average income per head of population in India is not more than Rs.27 a year. And though I am not prepared to pledge myself to the absolute accuracy of a calculation of this sort, it is sufficiently accurate to justify the conclusion that the tax-paying community is exceedingly poor. To derive any very large increase of revenue from so poor a population as this is obviously impossible, and, if it were possible, would be unjustifiable.”
    Later on this authority goes on to show the extreme poverty of the mass of the people. Then he reverts back again to the question of the Salt Tax in India—

    “He would ask hon. Members to think what Rs.27 per annum was to support a person, and then he would ask whether a few annas was nothing to such poor people.”

    There is the testimony of your highest Finance Minister, Lord Cromer, who is able to give a very satisfactory account of the work he is doing in Egypt, but was not able to give much encouragement as to India. And when we ask for information from the Government that would satisfactorily show whether, under the most highly praised administration in the world, and after 100 years of this administration, India is poor or not, a Finance Minister as late as 1882 expresses the same opinion as was expressed long ago. Nothing more can be said than that India is extremely poor. These are the words of your own Finance Ministers. Now take the conclusion to which Lord Cromer came in 1882, an extract from ​ which I have read to you with regard to the income of India being not more than Rs.27 per head per annum. This calculation is based upon a Note prepared by the present Finance Minister, and I ask the Government of India, I ask the Under Secretary of State for India, for a Return here in this House of that Note. It is only by complete information given by the Government in conformity with the requirements of this House, which requires that a complete statement of the moral and material progress of India should be laid upon the Table every year, that hon. Members can become acquainted with the actual condition of India. We have it every year of a kind it is not worth the paper it is printed on. There is a certain half-truth line of view always expressed in it, but the information that is required is what is the actual income of the country from year to year. My wish, Sir is to compare figures and see whether the country is improving or becoming poorer. But such information as is needed is not given. I have asked for this Return, and what is the answer given? “That it is out of date.” That is to say, that while this Note of 1881 was the basis upon which this public statement was made by Lord Cromer, this Return is not to be given to us.

    I now ask again that this Return should be given to us, and also a similar Return for 1891, that we may compare and judge whether India is really making any progress or not. Until you get this complete information before the House year by year, you will not be able to form a correct judgment as to the improvement of India. So far, we have, however, these high financial authorities telling us that India is the poorest country in the world, that it is even poorer than Russia. I trust that these facts are sufficient to satisfy hon. Gentlemen. Again, never has England spent, so far as I know, and so far as my information goes, never has there been a single farthing spent out of the British Exchequer, either for the acquirement of India, or for the maintenance of it, or administration, or in any manner connected with India, whilst at the same time hundreds of millions of the wealth of India have been constantly poured into this country. Whether any country in the world could stand such drain as India is subjected to is ​ utterly out of the question. If England itself, with all its wealth, was subjected to such a drain as India is subjected to, it would be reduced to extreme poverty before long.

    When the necessary information is before this House I shall be able to show how during the whole of this century Englishmen themselves have pointed out that India was kept impoverished. Now, what has been the effect upon the natives of India—the taxpayers themselves—from the fall in exchange? During the 20 years from 1873 up to the present day there has been a heavy loss in exchange in the remittances for home charges. I am not hero to-night discussing the justice or injustice of the home charges; I am taking the home charges as they stand, and taking the effect upon the Indian taxpayers. The people live on a very scanty subsistence, and, according to your highest financial authorities, they are extremely poor, yet in their ordinary condition they have to pay Rs. 100,000,000 to the Anglo-Indian servants for salaries, &c., of Rs. 1,000 and upwards per annum, and salaries under Rs. 1,000 besides. There is a large military expenditure to be kept up, and you have other payments under “the system of the yoke of the stranger.” All this means a great loss of wealth, wisdom, work, and capacity to India. I hope the House will be able to take all these points into consideration. Now let us see what a further heavy burden is put upon India by this fall in the exchange!

    There has been already, during the last 20 years, about Rs. 650,000,000 lost to the taxpayer on account of this fall of the exchange, and before next year is over it will be something like Rs. 1,000,000,000. And with these heavy burdens under which the taxpayer of India are groaning, you do not pay the slightest attention to them. You simply think of the sufferings and hardships of your own fellow-countrymen, for which I do not blame you at all. [“Oh, oh!”] It is only natural you should feel for them, but at the same time you ought to have some heart and some justice to consider from what sources this money has to be made up. You do not give a single thought to the sufferings of the men who are being ground to the very dust—as Sir Grant Duff once truly said. To ​ these people who are being literally ground and crushed to dust and powder you wish to add a still heavier burden. They have already suffered greatly from these causes. Can you have the heart to do it? They are a poor people living on a scanty subsistence, merely hewers of wood and drawers of water. I can say nothing more. I leave the matter to your sense of justice, to your heart, to consider whether it is right or proper that you should put still more burdens upon these poor people already so low.

    I have said there has not been a single shilling spent, out of the British Exchequer upon India during all this long connection. But I should make this one exception. On the occasion of the last Afghan War the then Prime Minister, who is also now, offered and gave £5,000,000 towards the expenses that were put upon us by the War. But that was only about one-fourth of the expenses of that iniquitous war. We suffered very heavily by that Afghan War, and heavy military expenses are going on without check or hindrance. Had the British people to pay (which they must pay at least in some fair proportion), we would have heard on this very floor a great deal about them. Now the House is asked by the hon. Member for Hull to put another burden upon the Indian taxpayer. What is the use of asking this?

    The fact is the Viceroy has already committed himself in as strong language as he could that he would do something for the Anglo-Indians, whether the burden upon the poor taxpayers becomes greater or not. He has not said a word about the sufferings of the poor Indian taxpayer. He has not even thought of him. The only thing he said in his long speech was that he did not yet add to the taxation simply because he thought it would be a temporary difficulty. But if it became a permanent difficulty, and as the Anglo-Indian Services could not tolerate the suffering that they have been put to, then he would determine to do something for them by additional taxation. “Very well, then,” says the hon. Member for Hull, “we must do something.” You should not put the expense on the poor native taxpayer, who has no vote. One right hon. Member talked about the vote, and that is just ​ because the poor Indian has no vote that there is so little heed for him. He is truly helpless and crushed down with every possible burden. If hon. Gentlemen here, after drawing millions from the native taxpayer, intend to put this additional burden upon him, then I can only say Heaven save him.

    With regard to the proposed relief, I would like to direct the attention of hon. Gentlemen to the words of the Viceroy in which he almost wholly commits himself to do something. In the face of that admission what is the good of a Committee. The Viceroy says that, whatever may be the Report of Lord Herschell’s Committee, he is determined that if the present state of things continues, the distress which has been borne for some time past by the officials cannot continue to be tolerated. Well, after that you may appoint Committees, but what the result will be is perfectly clear. You have a Committee of Europeans, you have European witnesses, European interests, and all the European sympathy. We know very well what the result will be of the deliberations of such a Committee. We have had ample experience of those Committees in the past. At all gatherings which had been held, where the interests of Europeans and Indians clashed, we know very well that the Indians had gone to the wall. There has hardly been an instance in which a Commission has sat on such a matter as this, and decided in a manner that can be called impartial and unbiassed. [Cries of “Agreed, agreed!”] I can quite understand that hon. Gentlemen should become impatient.

    A Committee is not required to prove the cases the hon. Member for Hull has brought forward. No doubt there is a great deal of suffering, but I ask you not to drag the relief from those who are already crushed, or as he himself said, not to be liberal with other wretched people’s money. I appeal to the British people in this instance to say that it is proper, right, and just that the British Exchequer should find the amount of money wanted. I will give a special reason for this. Every farthing that will be paid for this relief will be spent in this country. It will be simply passing from one hand to another. On the other hand, if you put the burden on the Indians, it means that every farthing taken out of their scanty substance will be carried away from India to this country, and thus our distress and our poverty will be enhanced. The money given for this relief will not be spent in India, but in this country, and I appeal to your justice, to your honour, and to your conscience whether it would be right to put such additional burden on the taxpayer of India? At the present exchange he has lost nearly Rs. 1,000,000,000. I appeal to hon. Gentlemen of this House, to the British people at large, that in this case especially it will be the right and proper and humane thing to give this relief to Anglo-Indian servants from the British Exchequer.

    The Motion is for a Committee. You may have it, but it is merely a farce; the whole thing is a foregone conclusion. Do not put additional taxation on these poor people. The pressure at present upon them is already far too heavy. Lastly, the only effective and permanent remedy for our woes is to remove the cause—the inordinately heavy foreign agency must be reduced to reasonable dimensions—and then there will be no burden and no problem of loss by exchange. Remove the yoke of the stranger and make it the rule of the benefactor, and you will be as much blessed and benefited as we.

  • Dadabhai Naoroji – 1893 Maiden Speech in the House of Commons

    Below is the text of the maiden speech made by Dadabhai Naoroji, the then Liberal MP for Finsbury Central, in the House of Commons on 28 February 1893.

    MR. NAOROJI (Finsbury, Central) said he did not wish to go into the question of the merits of monometallism and bimetallism. He wished merely to refer to the chief argument of bimetallists, which was that France had stood by bimetallism for 70 years, and had thereby introduced a fixed ratio between gold and silver. The question now was whether the bimetallism of France had been the cause of keeping the ratio between gold and silver steady, or whether it was not the fact that the ratio of gold and silver was not steady even when the system of bimetallism existed in France. He would ask if bimetallism had steadied that ratio why had it been broken up, and why had France given it up?

    When bimetallism existed in France there had been no universal consent between France and the other nations of the world, and why was that universal consent required now if bimetallism had any virtue in it? His contention was that when the time came that the ratio between gold and silver had become steadier they might have bimetallism or not, for it would come to the same thing. But India was the subject on which he wished to address the House principally. It had been said over and over again in the course of the Debate by one side that India had been largely benefited by the fall in exchange, and by the other side that India had been injured by the fall in exchange. It was difficult to arrive at a conclusion as to which side to believe, for each side had said it had official authority for its assertion. Instead of making general statements of that kind he would lay before the House a simple ordinary trade transaction from which they would be able to judge how far the difference in the two currencies in England and India, and the rise and fall in exchange, affected India. But in considering the subject they should always remember that India was in an unfortunate economic condition.

    They should consider India in two aspects—both as a self-governing country, like China independent of outside political influences, and as a country under foreign domination, with many important forces influencing her for evil and for good. Let them first take India as situated like China or any other self-governing country that had a silver currency.

    As far as trade and commerce between two independent countries were concerned it made no difference what currency existed in those countries. He would illustrate that by a simple trade transaction. A trader in India had to sell a hundred bales of cotton which cost him R.10,000. He sent the cotton to an agent in England to sell with directions to forward him the net proceeds of the sale. When the exchange stood at par rate of 2s. a rupee the trader had in calculating his profits to take that into consideration, as well as freight and insurance, and he would know exactly that he had to get a certain price, say 6d., for his cotton, in order to get his original R. 10,000 back and a profit of say another R.1,000. But suppose the rupee stood at 1s. instead of 2s. in exchange. In that case the trader would get only 3d. per pound instead of 6d. per pound for his cotton to cover his R.11,000. As exchange fell prices fell with it proportionately in England, and all the talk about India getting immense quantities of silver when there was a fall in exchange was simply absurd. The Manchester manufacturer was not such a fool as to pay 6d. per pound for cotton in England when by sending a telegram to Bombay he would be able to get the same cotton for 3d. per pound.

    His contention was, that whether there were two separate currencies in the two separate countries or not it had no weight or effect on the one country or the other, commercially, and in any case the Indian trader in the business transaction he had mentioned got back the money he had invested and in ordinary circumstances a profit of 10 per cent. In these controversies there was always a reference to prices. It was said that on such and such an occasion prices were high, and that on such another occasion prices were low. That was a very fallacious test, because the ultimate prices of commodities were not the result of one particular force, but the result of many forces, such as supply and demand, exchange, cost of production, &c. He was exceedingly thankful to those hon. Members who had shown so much sympathy towards India, but somehow or other the argument was always on the side for which it served its purpose. India was at one time exceedingly poor, and at another time exceedingly prosperous. But whatever the state of India might be, the system of exchange had nothing to do with it. Then take India, as it was, under foreign domination. It was true that India, under her peculiar circumstances, felt the pinch. India had to remit £16,000,000 sterling to this country every year. This year, or perhaps next year, it would unfortunately be £19,000,000, because for several years the India Office had got capital paid by Railway Companies in England, and did not require to draw their bills in India to that extent.

    The whole evil arising from the fall in exchange was this: that the disease already existed in India, and that fall in exchange came in and complicated it. If the disease of excessive European Services did not exist it would not be the slightest consequence whether the exchange was 6d. or 1s., or 2s. or 4s. the rupee. The position was, therefore, this: India had to send from her “scanty subsistence” a quantity of produce to this country equal to the value of £19,000,000 in gold. As gold had risen, India had to send more produce in proportion to the rise in gold, no matter what the currency was — silver, or copper, or anything. The sympathies of those who wished well to India in the course of the Debate were therefore a little misdirected. The remedy for the evils from which India was suffering did not lie in introducing bimetallism, or changing the currency into gold or restricting the silver currency, but in reducing the expenses of the excessive European Services to reasonable limits.

    After a hundred years of British administration—an administration that had been highly paid and praised— an administration consisting of the same class of men as occupied the two Front Benches, India had not progressed, and while England had progressed in wealth by leaps and bounds—from about £10 in the beginning of the century to £40 per head—India produced now only the wretched amount of £2 per head per annum. He appealed to the House, therefore, to carefully consider the case of India. He knew that Britain did not want India to suffer—he was sure that if the House knew how to remedy the evil they would do justice to India, but he wished to point out that bimetallism and the other artificial devices that had been put forward were simply useless, and that India would get no relief from them whatever. On the contrary, much mischief would be the result. With regard to the meeting of the Conference again, he thought it would be useless.

    In 1866, when Overend, Gurney, and Company failed, when many of the East India banks broke or were shaken to their foundations, and Bombay was in ruins, entirely on account of the fall in the price of cotton, no man in his senses tried to save this or that merchant, and raise the price of cotton somehow or other. The storm raged and ran its course. Many a well-known name passed into oblivion, but in a year or two no one thought anything more about it; cotton came in as usual from the interior, new men came into the field, and all the ruin was forgotten. The mischief was done in the present instance by the United States.

    There was a commercial disturbance, coming from demonetisation in Germany, or the excessive production of silver in America; just as storms arise in the physical world. The United States undertook the absurd feat of trying to stop it, and keep up the price of silver, and the result was that the more it was stemmed the greater force it acquired. Twenty years of suffering had been due entirely to this one mistake. The Indian people would be the greatest sufferers, but the storm must take its course. They could no more stop it than they could order gravitation to become non-existent, or make water run upward. Silver would go on falling until it had reached its proper bottom; the Indian and Chinese currencies would remain; there would be silver-using and gold-using countries, and the amount of silver that would come into operation would be useful in one way or another.

    On the one hand they were told that it was law that had made all this confusion, and the very same gentlemen who told them so would rush to the same law again to produce an artificial and worse condition of affairs. They must allow laws, commercial, physical, moral, or political, to be governed by nature. If they tried to stop the storm, the result would be far more disastrous. Conferences might meet, but they would not reach any conclusion except some artificial device which would merely cause more mischief. It was said that France was anxious for bimetallism and laid the blame of her not adopting it on England. But when France and the other Latin nations had bimetallism silver took its own course, and there was no use laying the blame on England now. He was of opinion that England must stick to the sound scientific principle of currency that she had adopted. Nor should she allow the currency of India to be tampered with. He thanked the House for the favourable hearing accorded to him, and hoped that before any step was taken to change the currency system either of this country or of India they would think once, twice, and three times.