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 IFORNIA 
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 MEMORANDUM 
 
 ON THB 
 
 
 PROGKESS OF THE MADRAS PRESIDENCY 
 
 DUEING THE LAST FOETY YEAES 
 
 OF BRITISH ADMINISTRATION. *
 
 MEMORANDUM 
 
 ON THE 
 
 PROGRESS OF THE MADRAS PRESIDENCY 
 
 DURING THE LAST FORTY YEARS 
 
 OF BRITISH ADMINISTRATION. 
 
 BY 
 S. SRINIVASA EAGHAYAIYANGAE, B.A., Dewan Bahadur, C.T.E. 
 
 Inspector-Ueneral of Registration, Madras. 
 
 MADRAS: 
 PRINTED BY THE SUPERINTENDENT, GOVERNMENT PRES^, 
 
 • ^18 9 3, 
 
 , ANTIQUARIAN ROCK-SELLER, 
 49, VENKATACHALA MUDALY ST..
 
 PREFACE TO THE -FIEST EDITION. 
 
 In July 1890, Lord Connemara entrusted to me the task of 
 examining whether the economic condition of the Madras 
 Presidency has, on the whole, improved or deteriorated 
 during the last 40 or 50 years of British administration and 
 of writing a Memorandum on the subject. I was given to 
 understand that the conclusions arrived at should be based 
 not only on information officially on record but also on the 
 results of independent inquiries. To ascertain whether any 
 and what improvement has taken place in the condition of 
 the masses of the population, it was, of course, necessary 
 that an idea should be formed as to their condition in the 
 past, and, for this purpose, I had to collect and read up a 
 great mass of old reports. This took up a deal of time, and 
 I was able to write only the preliminary portion of this 
 Memorandum before the end of 1890. The departure of Lord 
 Connemara to England and pressure of other official work 
 led to the preparation of this Memorandum being laid aside 
 for some time, and I was able to resume the work only in the 
 latter half of 1891. Since then I have been more or less 
 engaged on it, but as the work has had to be carried on in 
 addition to my other official duties, it has not been possible 
 to finish it earlier. The interval, however, has been utilized 
 for collecting information on such matters as prices of com- 
 modities, wages of labour, &c., in order that it might be used 
 for testing information obtained from official sources. The 
 Government has permitted me to add another section to this 
 Memorandum containing suggestions as to certain special 
 measures to be adopted for the amelioration of the agricul- 
 tural classes in connection with land settlements, agricultural 
 banks, agricultural and industrial education, &c.j and to revise 
 the 'statistics given in the appendices to the Memorandum
 
 vi PREFACE, 
 
 with reference to the results of the last census. This will 
 be done as soon as the results of the census become avail- 
 able, which will be very shortly, and the Memorandum will 
 then be issued in a complete form. 
 
 2. I have endeavoured to make the statistics given in 
 the memorandum as accurate as possible, but I can scarcely 
 hope that I have fully succeeded. The information given 
 as regards the state of things in former centuries, though 
 derived from sources which are the best available, is admit- 
 tedly imperfect, but this does not invalidate in any way the 
 general conclusions arrived at. 
 
 3. The subject being many-sided, it is, of course, not 
 possible in a first attempt to do more than break ground as 
 regards the various questions dealt with. I have, therefore, 
 printed as appendices to the Memorandum such official and 
 other papers as throw light on the questions discussed, for 
 purposes of easy reference in subsequent inquiries. This 
 accounts also for the large quantity of statistical information 
 and the large number of quotations given in the earlier por- 
 tions of my Memorandum. Much of this information is new 
 to the generation that is growing up, though not new to the 
 generation that is passing away. 
 
 4. In conclusion, I wish to point out that the subject 
 dealt with is the improvement in the material condition of 
 the Presidency, and though there are other points of view 
 from which the question of national well-being has to be 
 considered, improvement in the material condition is the 
 foundation on which improvement in other respects should 
 be built up. I venture to think that if the question be 
 impartially considered, there can be no two opinions as to 
 the very great advance made by the country during the last 
 40 years. 
 
 Madras, S. S. 
 
 nth April 1892.
 
 tREFAOE. Vll 
 
 PREFACE TO THE SECOND EDITION. 
 
 The additional section containing suggestions as to measures 
 to be adopted for the amelioration of the condition of the 
 agricultural classes has now been completed, and the Memo- 
 randum is accordingly issued in a complete form. 
 
 I have made a few verbal changes in portions of the 
 Memorandum already issued and added foot-notes in three or 
 four places to make my meaning clearer on some points to 
 prevent misapprehension. I have also given in the appendix 
 extracts from a reply published by me in the Madras Mail 
 to some criticisms which appeared in the Calcutta Review 
 on the question of pressure of population and one or two 
 important matters bearing on the condition of the agri- 
 cultural population. 
 
 The statistics given in the appendices have been revised, 
 as far as possible, with reference to the results of the last 
 census. Tiie Board of Revenue having furnished revised 
 figures as regards the acreage of holdings for some of the 
 earlier years, these have been adopted in the statement of 
 acreage of holdings printed in the appendix. I have retained 
 the life-table for the population of the Presidency taken fram 
 the census report of 1881, as the table prepared in connec- 
 tion with the census of 1891 relates to the population of the 
 Madras city alone. The comparative table of persons classi- 
 fied under various occupations in 1871 and 1881 has also been 
 retained unaltered, as owing to a radical change of classifica- 
 tion adopted for the census of 1891, a comparison between 
 the results of this census and those of the earlier censuses 
 has not been found possible. 
 
 No pains have been spared to render the statistics as 
 accurate as possible, but considering the great mass of figures
 
 .i. . . . 
 
 Vlll PREFACE. 
 
 dealt with, it is not possible to say that all chances of error 
 have been excluded. If any errors are brought to notice, 
 I shall thankfully correct the,m and issue an erratuna. 
 
 Though the work has outgrown the limits of a Memoran- 
 dum, the original form has been retained, the object through- 
 out being not so much to furnish cut and dry conclusions as 
 to indicate the methods of investigation to be pursued and 
 furnish materials as far as possible for forming a judgment 
 as to the improvement which has taken place in the condition 
 of the agricultural classes, and as to the further measures to 
 be taken for their amelioration. On some of the subjects 
 dealt with under the latter head, such as agricultural and 
 technical education and widening the scope of local adminis- 
 tration, my remarks are necessarily general, as my intention 
 is to point out the necessity for increased attention in certain 
 directions, and not to lay down the precise measures to be 
 adopted, the determination of which must, of course, be based 
 on a thorough investigation of the conditions of the localities 
 to which they are to be applied. It is hardly necessary to add 
 that the views I have expressed on these and other matters 
 are my individual opinions submitted for the consideration 
 of Government, and are not to be understood as reflecting 
 the opinions of the Government itself. 
 
 I must in conclusion express my grateful acknowledg- 
 ments to several gentlemen who have favoured me with the 
 results of their observation and experience in connection 
 with the inquiry forming the subject-matter of the Memoran- 
 dum, and to Mr. Hill, the Superintendent of the Government 
 Press, for the ready and willing assistance afforded by him in 
 passing this work through the press. My thanks are also 
 due to Mr. Cardozo, by whose kindness I have been enabled 
 to prefix a map of the Presidency to the Memorandum. 
 
 Palmaner, S. S. 
 
 2\st May 1893.
 
 CONTENTS. 
 
 Para. Page 
 INTRODUCTORY REMARKS 1 1 
 
 Section I.— THE STATE OF THE COUNTRY AND THE CONDI- 
 TION OF THE PEOPLE IN FORMER CENTURIES. 2-11 1-19 
 
 1. Scantiness of information as to the condition of the people in 
 
 former centuries ... ... ... ... ... ... ... 2 1 
 
 2. Pandya, Chola and Vijianagar Dynasties ... ... ... ... 3 2 
 
 3. Frequency of -wars and backward state of the country ... ... 4 2-4 
 
 4. Famines and epidemics very desti'uctive in former times ... 5 4-8 
 
 5. The land-tax collected by Native sovereigns, heavy and oppres- 
 
 sive ... 6 8-10 
 
 6. The character of the revenue adnwnistration under the Vijia- 
 
 nagar sovereigns ... ... ... ... ... ... ... 7 10,11 
 
 7. The enormous revenue of former rulers ... ... ... ... 8 12,13 
 
 8. The devices resorted to with a view to inci'ease revenue ... 9 13, 14 
 
 9. Temples, palaces, &c., erected by means of forced labour ... 10' 14, 15 
 10. Tavernier's accoiint of the state of the country and the condi- 
 tion of the people ... ... ... ... ... ... .,. 11 15-19 
 
 Section II.— THE CONDITION OF THE PRESIDENCY AT THE 
 
 END OF THE EIGHTEENTH CENTURY WHEN ' 
 
 MOST OF THE PROVINCES OF SOUTHERN 
 
 INDIA WERE ACQUIRED BY THE BRITISH ... 12-14 19-24 
 
 1. State of the districts and the condition of the population ... 12 19-22 
 
 2. Insecimty of property, obstriictions to trade, uncertainty in the 
 
 value of the currency and heavy taxation ... ... ... 13 22,23 
 
 3. Poverty of the agricultural classes .. . ,., .,. 14 23,24 
 
 Section III.— THE CONDITION OF THE AGRICULTURAL 
 CLASSES UNDER BRITISH ADMINISTRATION 
 DURING THE FIRST HALF OF THE PRESENT 
 CENTURY :.. 15-18 24-36 
 
 1. fiarly land settlements and the condition of the country during 
 
 the first 30 years of the century ... ... ... ... ... 15 24-27 
 
 2. Agricultural depression from 1834 to 1854 and its causes ... 16 27, 28 
 
 3. The condition of the ryots as disclosed in the reports of the 
 
 CoUectors of the several districts 17 28-33 
 
 4. The measures taken to ameliorate the condition of ryots and the 
 
 state of communications ... ... ... - ... ... ... 18 33-36 
 
 Section IV.— NARRATIVE OF THE PRINCIPAL FACTS BEAR- 
 ING ON THE CONDITION OF THE AGRICUL- 
 TURAL CLASSES FROM THE MIDDLE OF THE 
 PRESENT CENTURY TO THE PRESENT TIME... 19-21 36-43 
 
 1. The cessation of the period of agi'icultural depression and the 
 
 commencement of a period of prosperity and internal reforms 19 36-39 
 
 'J. There-action ... ,,. " ... ... ... ... ... ... 20 39-42 
 
 8. Fai>;iine of 1876-78 21. 42,43
 
 CONTENTS. * 
 
 Section V.— STATISTICS SHOWING THE ■ IMPROVEMENT IN 
 THE CONDITION OF THE PEOPLE SINCE 1850. 
 
 1. Introductory ... 
 
 2. Increase of population 
 
 ■ 3. Increase in the acreage of cultivation 
 
 4. Alleged decrease qf rainfall 
 
 5. Alleged deterioration of the soil by over-cropping 
 
 6. Prices ... 
 
 7. Effect of the improvement of communications on prices 
 
 8. Trade — its dimensions 
 
 9. The advantages of trade 
 
 10. The progress of trade in the principal articles of export 
 
 11. The progress of trade in imported articles and the low cost at 
 
 which they are now obtained 
 
 12. How far the rapid ei^pansion of foreign trade is " enforced" ... 
 
 13. Balance of trade ... .... 
 
 14. Effect of private remittances to England 
 
 15. The effect of remittances to England on the rates of exchange. 
 
 16. Imports of gold and silver into India .. ... 
 
 17. European exploitation ... ... ... .„ 
 
 18. Decadence of old indigenous industries 
 
 19. The decay of hand-loom weavers, a necessary stage in in- 
 
 dustrial development 
 2<3. The decline in the manufacture of iron 
 
 21. The shipping industry 
 
 22. The development of factory industries, ... 
 
 23. Taxation ; 
 
 2-i. Land Revenue — Tax or Rent ? 
 
 25. Growth of land revenue • ... 
 
 26. Pressm-e of the laud-tax and selling prices of land 
 
 27. Relation between Government assessment and rental ... 
 
 28. Ratio of Government assessment to gross produce ... * 
 
 29. The income-tax 
 
 30. Salt revenue ... 
 
 31. Excise on spirits and drugs ... 
 
 32. Customs revenue 
 
 33. Stamps 
 
 34. Registration fees 
 
 35. Incidence of taxation ... 
 
 36. The standard of living and the general condition of the different 
 
 classes of the population ... 
 • 37. The land-owning classes 
 
 38. Agricultural labourers .... 
 
 39. Labourers other than agricultural ... 
 
 40. In what directions the labom-ing classes have improved 
 
 41. Propertied classes other than land-holders, mercantile and pro- 
 
 fessional classes ... ... ... ... ... . ... ... 
 
 42. Artizans 
 
 43. The standard of living 
 
 44. Pressure of population 
 
 43. Does a large proportion of the population live on insufficient 
 
 food in ordinary seasons ? 
 46. Comparison of the economic condition of India with that of 
 
 European countries ... .., ... .,. ... 
 
 Para. 
 
 Page 
 
 22-67 43-185 
 
 22 
 
 43 
 
 23 
 
 43-47 
 
 24 
 
 47,48 
 
 25 
 
 49-52 
 
 26 
 
 52-57 
 
 27 
 
 57-59 
 
 28 
 
 59-63 
 
 29 
 
 64-67 
 
 30 
 
 67,68 
 
 31 
 
 .68-73 
 
 32 
 
 73-76 
 
 33 
 
 76,77 
 
 34 
 
 77-84 
 
 35 
 
 85-87 
 
 36 
 
 88-90 
 
 37 
 
 91 
 
 38 
 
 91-93 
 
 39 
 
 93-97 
 
 40 
 
 97-99 
 
 41 
 
 99, 100 
 
 42 
 
 100, 101 
 
 43 
 
 101, 102 
 
 44 
 
 102 
 
 45 
 
 102-106 
 
 46 
 
 106-109 
 
 47 
 
 109-111 
 
 48 
 
 111, 112 
 
 49 
 
 112, 113 
 
 50 
 
 113-115 
 
 51 
 
 115-120 
 
 52 
 
 120-124 
 
 53 
 
 124-127 
 
 54 
 
 128, 129 
 
 55 
 
 129, 130 
 
 56 
 
 130, 131 
 
 57 
 
 131, 132 
 
 58 
 
 132-138 
 
 59 
 
 138-150 
 
 GO 
 
 150 
 
 61 
 
 151-156 
 
 62 
 
 156-161 
 
 63 
 
 161-163 
 
 64 
 
 163-168 
 
 65 
 
 168-174 
 
 66 
 
 174-176 
 
 67 
 
 176-185 
 
 Section VI.— CERTAIN ALLEGED EVILS IN THE PRESENT 
 ECONOMIC POSITION AND REMEDIAL MEA- 
 SURES CONSIDERED 
 
 1. Alleged evils in the present economic position 
 
 ... 68-120 186-340 
 68 186 
 
 I. — Periodical Revisions of Land SEMtEMENf ,.. 69-79 186-217 
 
 1. The circumstances under which the Settlement department was 
 
 organized and the general principles laid doTV-n for its guid- ' 
 
 ance 69, 186-189
 
 C0N1ENT8. 
 
 XI 
 
 2. The elaborate methods of Madras settlement compared with 
 
 the simpler method of Bombay ... 
 
 3. In Madras, as in Bombay, valuation of soil dependent gi'eatly 
 
 on judgment and discretion of individual assessors and has no 
 claim to scientific accuracy 
 
 4. Hence the necessity to allow a large margin for error in fixing 
 
 land assessments 
 
 5. The enhancement of revenue in districts settled moderate 
 
 6. Districts in which settlements are in progress ... 
 
 7. The question of pei'manent settlement of land revenue, the 
 
 several phases it has passed through 
 
 8. Arguments for a permanent settlement ... 
 
 9. Ai'guments against a permanent settlement 
 
 10. Government of India scheme for minimizing the evils of perio- 
 
 dical revisions of assessment 
 
 11. Suggestions as to measures to be adopted for making the 
 
 Government of India scheme effective for the purpose in- 
 tended 
 
 Para. 
 70 
 
 72 
 73 
 
 74 
 
 75 
 
 76 
 
 77 
 
 Page 
 189-192 
 
 71 192, 193 
 
 193-196 
 196-200 
 200-205 
 
 205-207 
 207-210 
 210-212 
 
 78 212-215 
 
 79 216,217 
 
 II. — The Uncertainty of the Tenure of Ryots in Zemindaries. 80-89 217-249 
 
 1. The condition of Zemindari ryots not improved to the extent 
 
 that the condition of Government ryots has ... ... ... 80 217,218 
 
 2. The rights of the cultivating classes to the lands held by them 
 
 under the Hindu and Muhammadan systems ... ... ... 81 218-221 
 
 3. Melvaram and Kudivaram rights independent rights, — and other 
 
 interests derived from these ... ... ... ... ... 82 221-223 
 
 4. Permanent settlement with Zemindars in 1802 83 223-229 
 
 5. The safe-guards provided for the protection of the ryots' rights 
 
 nugatory and further measures taken in 1822 ... ... .'.. 84 229-233 
 
 6. Rent legislation in 1865 ... 85 233-236 
 
 7. Failure of Act VIII of 1865 to protect the rights of Zemindari 
 
 ryots 86 236-238 
 
 8. Present unsatisfactory condition of the Zemindari ryots ... 87 238-241 
 
 9. vSnggestions as to amendment of the law of landlord and tenant. 88 241-245 
 10. Legislation to arrest the rapid dismemberment of large Zemin- 
 dari estates 89 245-249 
 
 III. — Agricultural Indebtedness, its Causes and Remedies 
 
 1. Extent of agricultural indebtedness ... ... 
 
 2. Has agricultural indebtedness increased in recent years ? 
 
 3. Remedies suggested for mitigating the evils of agricultural 
 
 indebtedness retrogressive and inapplicable to this presidency. 
 
 4. Further remarks on the same subject 
 
 5. Practicable measures ... ... ... ... ... • 
 
 6. Agricultural banks 
 
 7. The nature and constitution of the proposed agricultural banks. 
 
 8. Provision of funds for agricultural banks 
 
 9. The utility of Land Credit Banks ... 
 
 10. Savings Banks ... ... ... ... ... .... 
 
 11. Further remams on the advantages of banking facilities 
 
 90-100 249-288 
 
 90 
 
 249-258 
 
 91 
 
 258-262 
 
 92 
 
 262-267 
 
 93. 
 
 . 267, 268 
 
 94 
 
 '268-270 
 
 95 
 
 270-275 
 
 96 
 
 275-278 
 
 97 
 
 278-280 
 
 98 
 
 280-282 
 
 99 
 
 282-284 
 
 .00 
 
 284-288 
 
 IV. — Absence of Diversity of Occupations and Necessity for 
 
 encouraging General aNd Technical Education ... 101-105 289-308 
 
 1. The facts connected with pressure of the population recapi- 
 
 tulated ,. ... 101 
 
 2. Progress of general education ... ... ... ... ... 102 
 
 3. Agricultural education ... ... ... ... ... ... 103 
 
 4. Technical education ... ... ... ... ... ... ... 104 
 
 5. Encouragement of industries by the imposition of protective 
 
 dutJss not desirable 105 304-308 
 
 289-292 
 293-298 
 298-301 
 301-304
 
 Zll 
 
 CONTENTS. 
 
 Para. Page 
 
 v.— CosTLi:<ESS OF JcsTiCE 106-110 308-319 
 
 1. The machinery provided for the decision of petty litigation ... 106 308-311 
 
 2. Higher litigation 107 311-313 
 
 3. Reforms suggested by Mr. Strange ' 108 313-315 
 
 4. Criminal justice 109 315-317 
 
 5. Merits and demerits of British system of justice as applied to 
 
 this country 110 317-319 
 
 VI. — Local and Municipal Administration 
 
 AFFECTING SoCIAL USAGES 
 
 AND Legislation 
 
 111-120 319-340 
 
 I)iBintegration of village communities ..• Ill 319 
 
 Causes of the decay of communal spirit 112 319-32] 
 
 Progress of local administration ... ... ... ... ... 113 321,322 
 
 DiflBculties of local administration and success attained therein 114 322-324 
 On what lines local administration should be -worted to ensure 
 
 greater success ... ... ... ... ... ... ... 115 324,325 
 
 Necessity for utilizing Local Boards as initiating and advising 
 
 bodies in legislation affecting social usages, &c. ... ... 116 325-328 
 
 Difficulties in .dealing with legislation affecting laws of inheri- 
 tance and social usages illustrated by projects for legislation 
 
 before the Madras Legislative Council • ... ... 117 328-332 
 
 Further remarks on the same subject ... ... ... ... 118 332 
 
 9. Unsatisfactory state of the law relating to native religious 
 
 endowments ... ... ... ... •.• ••■ ■•• 119 332,333 
 
 10. Concluding remarks 120 333-340 
 
 6. 
 
 7. 
 
 8. 
 
 APPENDICES. 
 
 Section I.— THE STATE OF THE COUNTRY AND THE CONDI- 
 TION OF THE PEOPLE IN FORMER CENTURIES. 
 
 Page 
 i-xix 
 
 A. — Sketch of the Dynasties of Southern India extracted from 
 Lists of Antiquities, Madras, by Mr. R. Sewell, M.C.S. 
 
 B. — Orissa under Hindu and British Administrations (from Hunter's 
 Orissa) ... ... ... ... 
 
 C. — Extract from the Article on "India" in Hunter's Gazetteer of 
 
 I'fdia 
 D. — Extract from the Journal of the ArchcBological Survey of India, 
 
 Vol.IV 
 
 E. — Abstract showing the revenue in paddy which a number of 
 villages in the" Chola country had to pay to the Tanjore 
 temple ... .... ... ... ... ... ... _ 
 
 i-v 
 
 v-xiv 
 
 XlX 
 
 Section II.— THE CONDITION OF THE PRESIDENCY AT THE 
 END OF THE EIGHTEENTH CENTURY WHEN 
 MOST OF THE PROVINCES OF SOUTHERN 
 INDIA WERE ACQUIRED BY THE "BRITISH ... 
 
 A. — Extracts from official reports showing the condition of the 
 several districts at the time they came under British 
 administration 
 
 B. — A list of Moturpha taxes, levied in the village of Singanallfir, 
 in the Coimbatore district, taken from the records kept by 
 the kamam of the village 
 
 xx-xxxiii
 
 CONTENTS, 
 
 Section HI.— THE CONDITION OF THE AGRICULTURAL 
 CLASSES UNDER BRITISH ADMINISTRATION 
 DURING THE FIRST HALF OF THE PRESENT 
 CENTURY 
 
 A. — Extract from the Indian Economist : Land Revenue — payment 
 in kind or in money ... ... ... ... ... 
 
 B. — Description of the Madras ryot by Mr. Bourdillou in 1853 
 
 Page 
 
 ixxiv-xlii 
 
 xxxiv-xxxviii 
 xxxviii-xlii 
 
 Section IV.— NARRATIVE OF THE PRINCIPAL FACTS BEAR- 
 . ING ON THE CONDITION OF THE AGRI- 
 CULTURAL CLASSES FROM THE MIDDLE OF 
 THE PRESENT CENTURY TO THE PRESENT 
 TIME xliii-xo 
 
 A. — Statement showing the permanent- reductions made in different 
 branches of revenue in all the districts during 15 years from 
 1841 • xUii-lv 
 
 B. — Extracts from Dr. Buchanan's Journey from Madras through 
 
 Mysore, Canara and Malabar in 1800 ... ... ... ... Ivi-lxviii 
 
 G. — Abstract of the Proceedings of the Board of Revenue, dated 
 
 25th November 1819, on the subject of agriciUtural slavery... Ixviii-lxx 
 
 D. — Extracts from the report of the Commissioners for the investi- 
 gation of alleged cases of torture in the Madras Presidency, 
 1855 ... ... ... ... ... ... ... ... Ixx-lxxv 
 
 E.— The Madras Ryot by Mr. R. A. Dalyell in 1866 Ixxv-lxxviii 
 
 F. — Results of the inquiries made by the Board of Revenue as to 
 
 the condition of the labouring classes in 1872 ... * . . . Ixxviii-xc 
 
 Section V.— STATISTICS SHOWING THE IMPROVEMENT IN 
 
 THE CONDITION OF THE PEOPLE SINCE 1850. kci-ccxxxvi 
 
 A. — Population ... ... ... ... ... ... ... .. cci-xcvi 
 
 (a) Statement showing the population of the Madras Presi- 
 dency ... ... ... ... ... ... ... ... xci 
 
 (h) St9,tement showing the civil condition of the population of 
 
 the Madras Presidency as per census of 1891 ... ... xcii, xciii 
 
 (c) Statement showing the birth and death-rates in different 
 
 countries per mille of the population ... ... ... xciv 
 
 {d) Table showing the expectation of life and the number 
 
 of survivors at different ages out of every 100 persons . . . xcv 
 
 (e) Table showing the proportion of population of various 
 
 countries grouped according to ages per 1,000 ... ... xcvi 
 
 B. — Cultivation ... ... ... ... ... ... ... ... xcvii-xcix 
 
 • Statement showing the extent of ryotwar or fully assessed land 
 
 cultivated in the several districts of the Madras Presidency. xcvii-xcix 
 
 C. — Prices ...* ... c-cviii 
 
 (a) Table showing the prices of second sort rice at different 
 
 periods ... ... ... ... ... ... ... o 
 
 (b) Table showing the prices of cholum ... ... ... ... ci 
 
 (c) Do. do. of ragi ... ... ... ... cii* 
 
 (ci) Do. do. of cumbu ... ... ... ... ciii 
 
 (e) Statement showing the number of measures of paddy sold 
 
 for a rupee at Palghat for a number of years compiled 
 from the accounts preserved in the family records of a 
 rich land-lord in Malabar ... .. ... ... ... civ 
 
 (/) Statement showing the prices of certain articles of food in 
 
 1853 as compared with their current prices in Palghat . . . oiv 
 
 (g) Statement showing the prices of different articles of food, 
 &c., at Sulur (a large village 7 miles from Coimbatore), 
 compiled from the village accounts preserved by an old 
 karnam or village accountant in the Coimbatore district ' cv 
 
 ( h) Statement showing the prices of food-grains at certain 
 stations in the Coimbatore district, obtained from certain 
 old cadjan accounts kept by merchants and land-holders. cvi
 
 XIV 
 
 CONTENTS. 
 
 Page 
 
 (t) Statement showing the prices of artioles of food, &c., in 
 1890 as compared with those about 1800 in the village 
 of Singanall6r, 5 miles from Coimbatore, compiled from 
 the accounts preserved by the karnam or accountant of 
 thevillage 
 
 (j) Statement showing the Mahanam prices of paddy per 
 Tanjore kalam for a series of years in the Tanjore 
 district ... 
 
 {k) Statement showing the prices of articles of food, &c., in 
 1892 as compared with those in 1797 at Manjeshwar in 
 the South Canara district ... ... 
 
 D.— Trade 
 
 CVlll 
 
 cix-cxxv 
 ois 
 
 (a) Foreign trade — value of exports and imports 
 
 (b) Statement showing tlie growth or increase of sea-borne trade 
 
 in relation to the revenue derived from customs duties 
 therefrom, and the quantity of salt sold and exported 
 with the rates of sale per maund of 82f lb. in relation to 
 the receipts derived therefrom in the Madras Presidency 
 from 1800-01 
 
 (c) Statement showing the quantity and value of the principal 
 
 articles of trade exported from, and imported into, the 
 Madras Presidency by sea for a series of years ... 
 
 (d) Statement showing the traffic by rail and by canal of the 
 
 Madras Presidency with other British Provinces, French 
 Territory, Native States, and the chief sea-port towns in 
 1889-90 : 
 
 (e) Statement showing the average prices in Madras of the 
 
 staple coijimodities of trade ... 
 
 (/) Statement showing the value of certain articles of export 
 
 and import deduced from the declared values of the 
 
 articles entered in the sea-borne trade returns of the 
 
 Madras Presidency .. ... ... 
 
 (g) Statement showing the net imports of gold and silver into 
 
 India for a series of years ... 
 (h) Statement showing the number of factories in the Madras 
 
 Presidency in 1889-90 
 
 E. — Taxation ... .. 
 
 (a) Statement showing the growth of revenue or taxation in the 
 
 Madras Presidency from 1800-01 ... 
 (h) Statement showing the growth of the various kinds of Local 
 
 and Municipal taxation from the year 1853-54 in the 
 
 Madras Presidency ... 
 
 (c) Statement showing the growth of the land revenue and 
 
 extension of occupied area of land fully assessed in 
 the Madras Presidency 
 
 (d) Statement showing the value of land in certain districts of 
 
 the Madras Presidency . 
 
 (e) Table showing the ratio of Government assessment to gross 
 
 produce of lands 
 
 (/) Remarks on the alleged increase in the price of salt due to 
 the salt excise system 
 
 (g) Remarks on the abkari administration of the Madras 
 Presidency 
 
 (/i) Statement showing the number of offences reported and 
 the number of civil suits instituted in 1850 and 1890 ... 
 
 (t) Statement showing the incidence of taxation in the Madras 
 Presidency 
 
 (j) Statement showing the expenditure of the Madras Presi- 
 dency in 1889-90 as compared with that in 1849-50 
 
 F. — Statistics relating to the improvement or the reverse in the 
 
 standard of living of the different classes of the population... clxxxiv-ccxxxvi 
 
 (a) Comparative table showing the number of persons (males) 
 engaged in the several occupations in 1871 and 1881 in 
 the Madras Presidency 
 
 {I) Statement showing the varieties of tenure held direct from ' 
 
 Government during the oflBcial year 1889-90 clxxxvii, clrxxviii 
 
 cxvi-cxix 
 
 cxx 
 ozxi 
 
 cxxii, cxxiii 
 
 oxxiv 
 
 cxxv 
 
 cxxvi-clxxxiii 
 
 cxxvi-cxxxiii 
 
 cxxxiv-cxxxvi 
 
 cxxxvii-cxlii 
 
 cxliii-cxlvi 
 
 cxlvi-cli 
 
 clii-clxi 
 
 clxii-clxxx 
 
 clxxx, clxxxi 
 
 clxxxii 
 
 clxxxii, clxxxiii 
 
 clxxxiv-olxxxvi
 
 CONTENTS. 
 
 XV 
 
 (c) Statement showing the number of transfers of revenue 
 
 estates in 1889-90 
 
 (d) Statement showing the classification of incomes assessed 
 
 under the Income-tax Act in the Madras Presidency 
 during 1890-91 
 
 (e) Statement showing the amount of Government stock 
 
 (public debt) held by Europeans and Natives in 1834, 
 1850 and 1888 throughout India ... 
 
 (/) Statement showing the transactions of the Presidency, 
 District and Post Office Savings Banks in India 
 
 (g) Statement showing tlie number and value of money orders 
 issued ... 
 
 (/)) Comparative statement of the rates of value of labour in 
 the several districts of the Madras Presidency for certain 
 years compiled from schedules of rates in force in the 
 Public Works Department ... ... * ... 
 
 (i) Statement showing the pressure of population on land in 
 the several districts of the Madras Presidency ... 
 
 (J) Statement showing the total acreage, classification of areas, 
 irrigated crops, current fallows and the number of live- 
 stock, carts, ploughs and boats in the Madras Presi- 
 dency during the year 1889-90 
 
 (k) Extracts from Dr. Macleane's Manual of Administration on 
 the economic condition of the labouring classes 
 
 (l) Opinions of certain gentlemen on the present economic 
 condition of the people as compared with theii- past 
 condition 
 
 (m) Tables showing the income, expenditm-e, scale of diet, &c., 
 in different countries 
 
 Page 
 
 clxxxix 
 
 cxc-cxcui 
 
 ecu, cciu 
 
 CClll-CCVll 
 
 CCVll-CCXXX 
 
 COXXX-CCXXXVl 
 
 Section VI.— CERTAIN ALLEGED EVILS IN THE PRESENT 
 ECONOMIC POSITION AND REMEDIAL MEA- 
 SURES CONSIDERED .., ,,. ... ... ccxxxvii— cccxix 
 
 A. — Land Settlements ... ... ... ... ... ccxxxvii-ccxiv 
 
 (1) Remarks on the method adopted by the Settlement Depart- 
 
 ment for calculating the outturn of lands and its money 
 value for fixing the Government assessment on the 
 lands ... ... ... ... ... ... ... ... ccxxxvii-ccxl 
 
 (2) Statement showing the increase or decrease in the occupied 
 
 area and in the assessment caused by the introduction • 
 
 of the survey and settlement ... ... ... ... ccxil 
 
 (3) Extract from Mr. Giffen's article on " Taxes on Land," 
 
 printed in his Essays on Finance, 1st Series- ... ... ccxlii-ccxliv 
 
 (4) Statistics showing the amount of taxes on land in various 
 
 countries and its ratio to total agricultural production 
 
 (extracted from Mulhall's Statistical Dictionary) ... ... ccxliv, ccxlv 
 
 B. — Tenure of Ryots in Zemindaries ,,, ... ccxlv-cclxvi 
 
 (1) Extracts from the remarks of the Madras Board of Revenue 
 
 on the relative rights of Zemindars and tenants ... ccxlv, ccxlvi 
 
 (2) Note on judicial decisions affecting rights of Zemindari 
 
 ryots ... ... ... ... ... ... ... ... ccxlvi-ccxlviii 
 
 (3) Extract from the report of Mr. Forbes on the condition of 
 
 Zemindari ryots in the Ganjam district ...' ccxlviii, ccxlix 
 
 (4) Extract from the report of Mr. Cotton, on the condition of 
 
 the ryots in the Kalahasti Zemindari, in the North 
 Arcot District, quoted by Mr. W. Digby in his memoran- 
 dum on private relief in the Madras Famine, 1877, p. 129, 
 Appendix I, to the Report of the Famine, Commission ... ccxlix, eel 
 
 (5) Exti-act -from the Administration Report of the Pudukota 
 
 State for 1881-82, by the Dewan Regent Mr. A. Sashiah 
 Shastriar, C.S.I., describing the evils of the system of 
 collecting the Government assessment on land in kind 
 by a division of the crops raised ... ccl-cclii 
 
 (6) Suggestions as to amendments to be made in the Law of 
 
 ^ landlord and tenant in the Madras Presidency cclii-eclv
 
 XVI 
 
 CONTENTS. 
 
 Page 
 
 cclv, cclvi 
 cclvi-cclviii 
 
 (7) Extract from Sir Eenry Maine's speech on the Panjab 
 
 Tenancy Bill before the Legislative Coancil of India 
 in October 1868 
 
 (8) Extract from Sir Frederick PoHock's English Land Laws ... 
 
 (9) Note on the discussions in the Madras Presidency as 
 
 regards the preferential rights of Mirasidars and resident 
 ryots to cultivate waste lands in their villages as against 
 strangers and the final settlement of the question ... cclTiii-cclxiv 
 
 (10) Extract from the speech of the Honorable Mr. Ilbert in the 
 Legislative Council of India on' the Bengs^l Tenancy bill 
 
 in 1885 ••• cclxiv-cclxvi 
 
 0. — Agricultural Indebtedness, its Causes and Remedies ... ... cclxvii-ccxci 
 
 (1) Statement showing the classification of mortgages of im- 
 
 moveable property registered in the year 1891 in the 
 Madras Presidency according to the periods for which 
 they run ... •.. ... ... ... ... ... cclxvii 
 
 (2) Statement showing the classification of lenders, the pur- 
 
 poses of loans, and the rates of interest charged on 
 
 loans, compiled from deeds of mortgage of immoveable 
 
 property without possession and from simple bonds . 
 
 registered in 1889, 1890 and 1891 in certain districts . . . cclxviii-cclxx 
 
 (3) Statement showing the aggregate and average values of 
 
 different classes of documents registered in the year 
 
 1891-92 in the Madras Presidency ... ... • cclxxi-cclxxii 
 
 (4) An account of the methods of business adopted by firms of 
 
 Nattucottai Chetties established in Karfir (Coimbatore 
 District) in lending money to ryots f m-nished by the Sub- 
 Registrar of Kartir ... ... cclxxiii-cclxxv 
 
 (5) Extract from the account given by Mr. Warden, Collector of 
 
 Malabar in 1801, of usurious money lenders in Palghat... cclxxv-cclxxvii 
 
 (6) Extract from Buchanan's Journey through Mysore, Ganara 
 
 and Malabar, 1801, on the method of making advances 
 
 of money for commercial products in Tellicherry . . . cclxxviii-cclxxx 
 
 (7) Extract from a report on the indebtedness of the agi-i- 
 
 cultural classes furnished by the Acting Registrar, South 
 
 Arcot District ... ... ... ... ... ... cclxxxi-cclxxxiii 
 
 (8) Tenant right in Java : extracted from an article from one of 
 
 the English Newspapers quoted in the Indian Econo- 
 mist, 1870 ... ... ... ... ... ... ...cclxxxiii-cclxxxvi 
 
 (9) Description of a Swiss Land Credit Bank ... ,. ... cclxxxvi-ccxci 
 
 D, — Decay of Domestic Industries, Absence of Diversity of Occupa- 
 tions, &c. ... ... ... ... ... ... ... ccxci-cccxv 
 
 (1) Extracts from a reply published in the Madras Mail to 
 
 certain criticisms in an article in the Calcutta Revieiu ... ccxci-cocxi 
 
 (2) Note on the progress of education by Mr. S. Seshaiyar, 
 
 Professor in the Government College, Knmbakdnam ... cccxi-cccxv 
 
 E. — Costliness of Justice cccxvi, ccoxvii 
 
 Statement showing the costs incurred in suits of different 
 
 values ... ... ... ... ... ... ... ... cccxvi, cccxvii 
 
 F. — Local Fund and Municipal Administration, &c. ... ... ... cooxviii, cccxix 
 
 Extracts from the remarks of Sir Alfred Lyall in regard to the 
 political inexpediency of GTovernment relinquishiijg its right 
 to control the management of religious institutions ... ... cccxviii, cccxix
 
 MEMOEANDUM, 
 
 In this memorandum I propose to examine whether the 
 economic condition of the Madras Presidency, and especially of 
 the agricultural classes, has improved or deteriorated during the 
 last 40 years of British administration, and whether, if there 
 has been improvement,. it is proceeding on right lines. 
 
 Section I. — The state of the country and the condition of the 
 people in former centuries. 
 
 2. It is generally admitted that the last century, which 
 ,. , immediately preceded the establishment of 
 
 Scantiness of miorma- -r^.,.i ^a . . xt 
 
 tion as to the condition British powcr lu oouthem India, was a 
 of the people in former period of auarchy and of suffering to the 
 
 C6DL11P16S "^ *^ 
 
 masses of the population ; but it would be 
 interesting to learn what was the condition of the people in 
 the preceding centuries under native rulers. Information on 
 the subject is, however, exceedingly scanty, the very names of 
 some of the dynasties which bore sway in Southern India 
 having been forgotten ^ ; and it is only recently by a laborious 
 study of ancient inscriptions, Indian archaeologists have been 
 endeavouring to construct a South Indian history. The results 
 of their researches, so far as they have gone, have been sum- 
 marized by Mr. R. Sewell, M.C.S., in his Lists of Antiquities 
 of the Madras Presidency^ and I have ventured to extract 
 Mr. Sewell's remarks in an appendix ^ to this memorandum. 
 It will be seen from Mr. Sewell's account, that from the earliest 
 historical times Southern India was "divided into a nun^jber of 
 small kingdoms, which, like the kingdoms of the Heptarchy, 
 were continually at war with one another ; that each dynasty 
 aspired for universal dominion and asserted it as opportunities 
 offered ; that the pressure of immigration of tribes from Northern 
 India added to the distracted state of the country caused by 
 internecine wars; and that from the 14th century, when the 
 Muhammadans pushed their arms to Southern India and founded 
 Muhummadan kingdoms in the Northern Deccan, to the begin- 
 ning of the 19th century, the country seldom enjoyed peace. 
 
 1 The Pallava dynasty appears to have been a powerful one and ruled over all the' East 
 Coast districts from the Kistna to the Coleroon and to have had iis capital at Conjeeveram. 
 Even ifhe name of the dynasty has gone completely out of the memory of the people of 
 the country pver whom it ruled. 
 
 ^ Vide appendix A, section I,
 
 3. Among the various dynasties which* have successively- 
 ruled in Southern India, the times of the 
 ViSard^'ates"' Pandiyaus in the Madura and Tinnevelly 
 districts,* of the Cholas in the Tan j ore 
 district and of the Vijianagar kings in the Southern Deccan, 
 live in tradition as a sort of " golden age." That the Pandi- 
 yans were a powerful dynasty, and that their country under 
 Budhist at first, and subsequently under Brahrainic, influences, 
 attained to a very considerable degree of civilization, and kept 
 up commercial intercourse with the Greeks and Romans, seem 
 certain. They were also great patrons of the Tamil literature, 
 and it was during their time that the famous ''Sangham" or 
 College of Poets was established, and the greatest Tamil poems 
 were composed. The Cholas, who rose to great power in the 
 11th, 12th and 13th centuries and held sway over nearly the 
 whole of Southern India, were the builders of most of the great 
 temples that exist in such numbers in the Tan j ore district, and 
 of the anicut across th^ Cauvery. They excavated several 
 channels for irrio^ation, which are known by their names — 
 Virasholanar, Vikramanar, Kirtimanar, Mudikondanar — and 
 established agricultural colonies and Brahmin agraharams for 
 the spread of Aryan civilization. The powerful Vijianagar 
 dynasty stemmed the tide of Muhammadan conquest for two 
 centuries, z.e., 15th and 16th, until it was overwhelmed by a 
 confederation of the Muhammadan sovereigns of the Deccan, 
 and its magnificent capital was sacked and utterly destroyed. 
 All these dynasties rendered important services to South Indian 
 civilization, and, as. during their times some of the greatest, 
 religious teachers and scholars and dialecticians — Sankara- 
 charya, Ramanujacharya and Vidiaranya — lived and flourished, 
 it is no wonder that the people of Southern India recall the 
 memory of those times with pleasure and pride. 
 
 4.^very dynasty, however, when it attained to supreme 
 Frequency of wars P^^cr, drcw to itsolf all the Wealth of the 
 and backward state of surroundiug provinccs and adorned its 
 e coun rj'. capital with magnificent buildings, but the 
 
 conquered provinces were generally oppressed. One of the 
 Pandiyan kings in an inscription boasts, among his other 
 exploits, of having set Tanjore and Uraiyur (the Chola capitals) 
 on fire ; demolished the houses, high walls, storied houses and 
 palaces ; -made the tears of the wives of refractory kings flow 
 like a river ; caused the sites of the buildings to be ploughed 
 with asses and sown with cowries ; driven the Chola from his 
 dominions into a barren place "and taken away his crown of 
 gold and given it* to a poet, who sang in praise of him,^ &c. 
 One of the Chola kings in the same manner, in his turn,
 
 humbled the Pandiyans and assumed the title of Madurantaka 
 (death of the Madura city). Allowing for great exaggeration, 
 the language of the inscriptions shows that even the best days 
 of the ancient dynasties were those of wars and violence, that 
 the ambition of every king was to humble the pride of his 
 neighbours and to spoil their territories, and that these exhaust- 
 ing wars must have entailed on the people an immense amount 
 of misery, which, of course, was borne with patience and 
 resignation, as they had had no experience of a happier condition. 
 Large portions of the country were also covered with jungle or 
 inhabited by tribes hardly reclaimed from savagery. From a 
 letter of a Jesuit missionary, written in the beginning of the 
 18th century, it appears that on the Tinnevelly coast, which is 
 now a fully cultivated and densely populated tract, " a large 
 jungle had for some time past been infested by tigers to such a 
 degree that after sunset no inhabitant of any village situated in 
 its neighbourhood dared to move outside his door. Watch was 
 kept in every village at night and large fires were lighted for 
 the purpose of scaring the monsters away. Even in the day- 
 time travelling was not quite safe, and numbers of people had 
 disappeared who had, without doubt, been seized and devoured 
 in lonely places." The country lying on the outskirts of 
 Trichinopoly town appears to have been covered with jungle 
 and infested by robbers in the middle of the 16th ctntury. 
 The same was the case in the Coimbatore district also. Marau- 
 ders were so numerous that a traveller by night was almost 
 certain to fall into their hands. Wild beasts were so common 
 that one missionary lost thirty of his acquaintances by their 
 ravages within six months. Both in the Pandiya and Chola* 
 countries large tracts were, and still are, inhabited by Kallers, 
 whom Father Martin, who lived in the 18th century in the 
 vicinity of Kaller country, described as more barbarous than 
 any savages in any part of the globe. His assertion is corrobo- 
 rated by Ward and Connor's survey account, which states that 
 ^' a horrible custom exists among the females of the Colleries. 
 When a quarrel or dissension arises between them, the insulted 
 woman brings her child to the house of the aggressor and kills 
 it at her door to avenge herself, although her vengeance is 
 attended with the most cruel barbarity. She- immediately 
 thereafter proceeds to a neighbouring village with- all her 
 . goods, &c. In this attempt she is opposed by her neighbours, 
 which gives rise to clamour and outrage. The complaint is 
 then carried to the head Ombalakar, who lays it before the 
 elders of the village and solicits their interference to terminate 
 the quarrel. In the course of this investigation, if the husband 
 finds that sufficient evidence has been brought against his wif^
 
 and that she had given cause for provocation and aggression, then 
 he proceeds unobserved by the assembly to his house and 
 brings one of his children, and in the presence of the witnesses, 
 kills his child at the door of the woman who had first killed her 
 child at his ; by this mode of procedure he considers that he 
 has saved himself much trouble and expense, which would 
 otherwise have devolved on him. The circumstance is soon 
 brought to the notice of the tribunal, which proclaims that the 
 offence committed is sufficiently avenged. But should this 
 voluntary retribution of revenge not be executed by the con- 
 victed person, the tribunal is prorogued to a limited time — 
 fifteen days generally. Before the expiration of that period 
 one of the children of the convicted. person must be killed; at 
 the same time he is to bear all expenses for providing food, 
 &c., for the assembly during three days. Such is their inhuman 
 barbarity in avenging outrage, which proves the innate cruelty 
 and the unrestrained barbarity of their manners and morals." 
 
 5. There cannot be the slightest doubt that famines and 
 FamineBandepideinic8 epidemics woro far more_ frequent and des- 
 very destructive in for- tructivo iu formor ccuturies than at present, 
 mer times. Alliisious to terrible famines occur in ancient 
 
 Hindu writings. The Ramayana mentions a severe and pro- 
 longed drought which occurred in Northern India. According 
 to the Orissa legends severe famines occurred between the 
 years 1107 and 1143 A.D. The memory of a terrible 12 
 years' famine^ " Dvadasavarsha Panjam " lives in tradition in 
 Southern India. Duff in his history of the Mahrattas 
 states that "in 1396 the dreadful famine distinguished from all 
 'others by the name Durga Devee commenced in Maharashtra. 
 It lasted, according to Hindu legends, for 12 years. At the 
 end of that time the periodical rains returned ; but whole 
 districts were entirely depopulated and a very scanty revenue 
 was obtained from the territory between the Goddvari and the 
 Kistna for upwards of 30 years afterwards. The hill forts and 
 
 ^ The story is as follows: There was a terrible 12 years' famine in the land, the 
 " nine " planets who rule the destinies of men having decreed that the human race should 
 be destroyed. At the close of the r2fh year, the " planets " went on a tour of inspection 
 to see if the work of destruction was complete. ■ All was desolation, but there was one 
 green spot at a distance. They repaired to the place to see what it was. There, a ryot, 
 who was a groat astrologer, had, by his art, foreseen that a great famine was coming and 
 had taken pl-ocautions against it. In years of abundance he saved the grain (ragi; and 
 built up the walls of his house with this grain mixed with mud and planted prickly-pear 
 round hie gardens and fields. When the drought came the man fed his goats with ' 
 prickly-pear, which flourishes even during times of drought, and boiled the grain scraped 
 from the walls of his house with the milk yielded by the goats and ate the boiled ragi 
 and thus lived ; for there was not a. drop of water to be had anywhere. When the man 
 saw the " planets," ho knew who they were and offered to feed them too. They accepted 
 his hospitality and after a fiill meal lay down to sleep in crooked and inauspicious posi- 
 tions. When they were fast asleep the rj'ot put them all in auspicious positions ana thus 
 the faiaiuc came to a.o eod and the world began once more to prosper, •
 
 strong places previously conquered by the Muhammadans had 
 fallen into the hands of Poligars and robbers, and the returning 
 cultivators were driven from their villages." In the works 
 of the Hindu astronomer Yaraha Mihira, there are passages 
 tending to show that the theory of the connection between sun 
 spots and droughts was known at the time, and this knowledge 
 must have been the result of obset'vations made during long 
 periods of time. The Muhammadan historian Ferishta records 
 two famines as having occurred in the 15th century. He states 
 that, in 1423 A.D., no rain falling, a grievous famine was 
 experienced throughout the Deccan, and multitudes of cattle 
 died on the parched plains for want of water. The king 
 (Ahmed I of the Bahmini dynasty), in consequence, increased 
 the pay of his troops and opened public stores of grain for the 
 use of the poor. The next year also, there being no rain, the 
 people became seditious, complaining that the present reign 
 was unlucky and the conduct of the prince displeasing to God. 
 The king felt this bitterly, repaired to the mosque and prayed 
 to God for rain. Eain came and the people were satisfied and 
 the king was thenceforward surnamed the " saint." In 1474 
 A.D., there occurred a famine still more terrible. The following 
 account is given of it by Ferishta : " When the royal standard 
 reached the city of Bijapore, Mahomed Shah (Bahmini dynasty), 
 at the request of Khajwa Mahomed Khan, halted to repose his 
 fatigues, and the minister, endeavoured to soothe his grief for 
 the death of his mother. Admiring the situation of Bijapore, 
 the king would willingly have remained there during the rainy 
 season, but so severe a drought prevailed throughout the 
 Deccan that the wells dried up, and the king, contrary to his 
 inclination, moved with his army to Ahmedabad Beder. "No 
 ram fell during the next year either, and the towns in conse- 
 quence became almost depopulated. Many of the inhabitants 
 died of famine and numbers emigrated for food to Malwa, 
 Jajnagger and Guzerat. In Telingana, Maharashtra and 
 throughout the Bahmini, no grain was sown for two years; 
 and, in the third, when the Almighty showered his mercy on 
 the earth, scarcely any farmers remained in the country to 
 cultivate the lands." 
 
 In 1570 a great famine appears (from the records of the 
 Portuguese Mission) to have raged on the Tinnevelly coast. 
 Father Henriques, a Portuguese missionary, established famine 
 relief houses, in some of which 50 persons were daily fed. 
 The records of the Madura Jesuit Mission contain accounts of 
 some famines which occurred in the 17th and 18th centuries. 
 In 1^64 8 there was a famine in the Coimbatore district when a 
 great p^rt of the population died or deserted the country. In
 
 6 
 
 1659 th« Muhammadans of Golconda invaded the southern 
 countries. " The cruel devastation of the country round 
 Trichinopoly and in the direction of Vallam led to a local 
 famine, which within a short time compelled the population to 
 emigrate in a body, some to the Marava country and some to ' 
 the Madura country, and some to Satyamangalam ; and then 
 the Muhammadans themselves were reduced to great extremities. 
 Their horses died from want of forage, their camp-followers 
 ran away and thousands of them died of actual starvation. So 
 numerous were their deaths that it was impossible to bury 
 their corpses, which were accordingly left in great heaps in the 
 open fields. The effluvium arising from their decomposition, 
 combined with the ill-health resulting from want of proper 
 food, rapidly engendered a pestilence, which carried off large 
 numbers." The sufferings of the people during the years 
 1659 to 1662 appear to have been terrible. The privations 
 undergone by the Christians are described by the Jesuit 
 missionaries as heart-rending; upwards of 10,000 of them died 
 of want and starvation. Tanjore appears to have suffered even 
 more than Madura, and almost the entire Christian population 
 of that kingdom was driven out of it either by the fear of 
 Muhammadans or by the pangs of hunger. The Hindus also 
 persecuted the Christians for having offended the local deities 
 and brought drought and famine on the land by their impiety, 
 in the same manner as Christians in 'European countries appear 
 to have persecuted the Jews in the middle ages, whenever 
 famines and plagues occurred. 
 
 In 1677 the Madura country was invaded by the Mysoreans. 
 An extraordinary fall of rain on the Western Ghauts inundated 
 the country and swept away the low-lying villages with their 
 entire population. This was followed by famine and pestilence, 
 and it is stated that many of the half-starved wretches, who 
 survived these calamities, took to brigandage and overran the 
 kingdom unchecked. From 1709, for nearly 12 years, the 
 Marava country, Ramnad and Sivaganga, suffered from terrible 
 droughts alternating with floods, and large numbers of the 
 inhabitants emigrated to Tanjore and Madura. The droughts 
 appear to have been entirely due to the capriciousness of the 
 seasons, as irrigation works in the Marava country were in 
 those days in an excellent condition. Father Martin wrote in 
 1713: ^ " Nowhere have more precautions been taken than in 
 Marava not to let a drop of water escape and to collect all the 
 
 ' These and other quotations from the records of the Madura Jesuit Mission are 
 translations of extracts in French given in Mr. Nelson's Madura Mannal. They o.3ntain 
 the most authentic information as to the condition of the Madura district in the 17th 
 ceotury and I have therefore given them at length in this memorandum. '
 
 water formed by the rains in brooks and torrents. Here there 
 is to be seen a pretty large river called Yaigaiyaru. After 
 crossing a part of Madura, it enters Marava, and when its bed 
 is full, which ordinarily happens a whole month every year, it 
 is as large as the Seine. Yet, by means of canals dug by our 
 Indians far away from their tanks, this river is so drained on 
 all sides that it* loses itself entirely and does not reach its 
 mouth till it has spent several weeks in filling the reservoirs 
 towards which it is diverted. 'Vho. most common tanks have 
 banks half a league long ; there are others which are a league 
 and more in length. I have seen three, more Jhan three leagues 
 in length. One of these tanks furnishes enough water to 
 irrigate the fields of more than 60 plantations. As rice (paddy) 
 must have its stem in water until it has acquired perfect 
 maturity, after the first reaping, when there is still water in 
 the tanks, they manure the lands and commence sowing again, 
 for all times of the year are adapted to the growing of paddy, 
 provided there is no deficiency of water." That prices of 
 agricultural produce were subject to the most violent fluctua- 
 tions on account of want of outlet for produce in years of 
 abundance is evident from the following extract from the Jesuit 
 missionary's letter: — " It is owing to the abundance of water, 
 which the ryots caused to flow from theii- tanks into the fields, 
 that they are able to grow a prodigious quantity of rice. 
 When the rain is abundant, the price of rice and other 
 provisions is low. They get eight merkals ^ or large measures 
 of unhusked rice for one fanam, which suffice to noui'ish a man 
 for more than 15 days. But as soon as the rain fails, the 
 dearness is so great that I have seen the price of one of these 
 measures of rice rise to 8 fanams (eighteen sous)." This shows 
 that in years of scarcity the price rose to 64 times of what it 
 was in ordinary times ! In 1733, there was a scarcity in the 
 Chingleput district, which is stated to have been caused more 
 by the neglect of irrigation works under the rule of the Nabobs 
 of Arcot than by the failure of the seasons. The price of 
 paddy rose to 40 pagodas per garce, while the ordinary price 
 was 25 pagodas per garce. Twenty years before 1733, it is 
 stated that 25 pagodas per garce would have been reckoned as 
 famine price. In 1780 occiuTcd Hyder's desolating invasion 
 of the Carnatic followed by the grievous famine, the horrors 
 
 *Mr. Nelson takes the price quoted as equivalent to 96 lb. for 2,^d. Father Martin 
 says that 8 merkals will suffice to nourish a man for more than 15 days. If we take the 
 quantity of rice required by a person at 31b. per diem, the quantity required for 16 days 
 would be 45 lb. Even if this reduced quantity were worth 2frf., the price would have 
 been 4^0 lb. per rupee or -,\-th of the price at the present time ; in other words the 
 parchasing value of the rupee would have been in the beginning of the 18th century 12 
 times what it is now.
 
 8 
 
 of which were described by Burke in one of his well known 
 orations. From 1789 to 1792, a terrible famine raged in 
 the Northern Circars. The famine does not appear to have 
 extended to the north of Ganjam, and at Puri the people lived ^ 
 in the midst of plenty. In the Ichdpur and Chioacole coun- 
 tries, however, the people died in thousands. • The country was 
 plunged in a state of misery and desolation truly deplorable. 
 Whole tracts were depopulated, and when the famine came 
 to an end, people were not forthcoming to cultivate the lands. 
 The reports of the Collector of Rajahmundry in the beginning 
 of the century shT)w that many villages in the fertile delta of 
 the Goddvari had become depopulated and great difficulty was 
 felt in arranging for the cultivation of lands. 
 
 Epidemics also were very frequent and destructive. • Small- 
 pox was very virulent, so much so that, on the Western Coast, 
 till within recent times, on the first appearance of the epidemic 
 in villages, the villagers used to desert them, leaving the suf- 
 ferers to shift for themselves as best they could or die. So 
 recently as the beginning of this century a fever of a very malig- 
 nant type decimated the populations of Madura, Tinuevelly and 
 Coimbatore districts. A committee was appointed by Govern- 
 ment to inquire into the causes of the epidemic, and it reported 
 that the primary cause was the highly insalubrious condition of 
 the atmosphere resulting from the continued and extraordinary 
 deviations from the regular course of the seasons and the 
 miasmata arising from the marshy grounds, the thick jungles on 
 the bill sides and from the salt marshes on the sea coast. The 
 committee added that there were not wanting also predisposing 
 causes in the debilitated condition of the population owing 
 to insufficient diet, exposure to cold and damp, and fear and 
 anxiety. The wretched ryorts were only too well prepared to 
 imbibe the poison by their poor condition and careless habits 
 of life, and this was conclusively shown by the fact that, on 
 one occasion, while the ryots were dying by thousands, soldiers, 
 convicts and others scarcely suffered at all. 
 
 6. There is also ample evidence to show that the land tax 
 
 The land tax collected taken, uot ouly by the Muhammadan but 
 
 by Native sovereigns also by the Hindu soveroigns, was fully 
 
 heavy and oppressive. v. li; xi. i nr 5 
 
 one-hall the gross produce. Menu s pro- 
 portion of one-sixth (which in the case of unirrigated lands 
 must have operated as a heavy tax on industry and not on rent, 
 for rent, owing to the abundance of cultivable lands and the 
 sparseness of population, could not have come into existence) 
 must, if it ever was observed in practice, have for several 
 centuries been exceeded, and half the gross produce come to
 
 be recognized as the legal rate. Dr. Burn ell, in his South 
 Indian Palceography^ has stated "that the land tax (for such 
 it originally was in South India, not rent) should amount to 
 half the produce, has long been quoted as an instance of rapa- 
 • city of Muhammadan and English Governments, from the 
 illustrious B. Neiburh's early letters down to modern public 
 discussions, by people ignorant of Indian history. But it has 
 •nothing to do with either. . The inscriptions at Tanjore show 
 that the indigenous Chola kings of the II th century took about 
 half the produce, and F. W. Ellis long ago asserted, on other 
 grounds, that the tax was always more than the sixth or fourth 
 permitted by the Sanskrit lawyers. A consideration of royal 
 grants would also conclusively show (as Sanskrit lawyers as- 
 serted) that the Government never had any right to the land." 
 In the Northern Circars also the native dynasties, long before 
 the Muhammadan conquest, appear to have taken half the gross 
 produce as the land tax, and this rule was in force in several 
 zemindaries and principalities which had never, or only for a 
 short time, been under Muhammadan domination — the Eamnad 
 zemin'dari for instance. The only instance in which the rule 
 laid down by the Shastras was adopted in rating lands for the 
 revenue was in South Canara, and in this case, the Shastraic 
 rule was resorted to with a view to enhance the land tax which 
 had till then been levied. In South Canara, cultivationjias to 
 be carried on under more difficult conditions than elsewhere. 
 The country is extremely rocky and uneven, and^^ owing to 
 excessive rainfall, cattle are scarce and cannot be employed at 
 all seasons of the year. The ground has to be levelled at great 
 expense to make it fit for cultivation, and this operation has to 
 be continually repeated, as; owing to heavy rainfall and moun- 
 tain torrents, the land is constantly cut up into deep gullies. 
 Reclamation of land could, under these circumstances, have 
 been possible only if the land tax had been extremely mode- 
 rate, and accordingly the original land tax appears to have been 
 fixed at ^th of the gross produce till about A.D. 1252, when 
 the country was conquered by a Pandiyan prince. He ruled 
 that the ^th share should be delivered in rice and not in 
 unhusked paddy, and thus increased the tax by about 1 per 
 cent. When the country became a dependency of Vijianagar, 
 the king Ilari Har Eoy fixed the land-tax at |th of gross pro- 
 duce, i.e., ^th the king's share proper, and yV^h the share 
 allotted by the Shastras for the support of temples and Brahmins, 
 thus enhancing the tax by 50 per cent. From information 
 extracted by Dr. Buchanan from certain old accounts in the 
 possesion of a shanbogue at Gokurna and given in his " Journey 
 
 2
 
 Id 
 
 through Mysore, Malabar and Canara in 1800," it appears, 
 however, that in certain parts of North Canara, according to a 
 valuation of Krishna Raj^a, the king of Vijianagar, while the 
 tax on rice lands was |th of the gross produce, that on cocoanut 
 plantations was quite half the gross produce. 
 
 7. The following extracts from the records of the Madura 
 Jesuit Mission give the particulars con- . 
 rev?n;;':^[strltion nected with the land revenue administration 
 under the Vijianagar of the Madura couutry uudor the rule of 
 Bo/ereigns. ^-^^ viceroys of the Vijianagar kings in the 
 
 17th century : '^ The King or Grand Nayakar of Madura has 
 but a few domains which depend immediately on him, that is. 
 to say, which form his property (for, in this country, the great 
 are sole proprietors, and the people are only tenants or farm- 
 ers) ; all the other lands are the domains of a multitude of 
 pettv princes, or tributary lords ; these latter have each in his 
 own domains the full administration of the police and of justice, 
 if justice there is at all; they levy contributions which com- 
 prise at least the half of the produce of the lands ; of thi?r they 
 make three parts, the first of which is reserved as tribute to* 
 the Grand Nayakar; the second is employed in supporting 
 troops, which the lord is bound to furnish him with in case of 
 war ; yie third belongs to the lord. The Grand Nayakars of 
 Madura, like those of Tanjore and Gingee, are themselves 
 tributarie^of Vijianagar, to whom fliey pay, or ought to pay, 
 each one an annual tribute of from 6 to 10 millions of francs. 
 But they are not punctual in this payment ; often they delay, 
 and even sometimes refuse insolently ; then Vijianagar arrives 
 or sends one of his generals at the head of a hundred thousand 
 men to enforce payment of all arrears, with interest, and in such 
 cases, which are frequent, it is the poor people who are to 
 expiate the fault of their princes ; the whole country is devas- 
 tated and the population is either pillaged or massacred." The 
 revenue administration of the Mahratta chief, Ekoji, a half- 
 brother of Sivaji, in Tanjore, appears from a letter of a Jesuit 
 missionary in 1683 to have been, if possible, even more oppres- 
 sive. The missionary states : " Tanjore is in the possession of 
 Ekoji with the exception of a few provinces which have .been 
 seized by the Marava. Here is a short sketch of the adminis- 
 tration of this country. Ekoji appropriates four-fifths of the 
 produce. This is not all. Instead of accepting these four- 
 fifths in kind, he insists that they should be paid in money ; 
 and as he takes care to fix the price himself much beyond that 
 which the proprietor can realize, the result is that the sale of 
 the entire produce does not suffice to pay the entire contri-
 
 11 
 
 bution. The cultivators then remain under the weight of a 
 heavy debt ; and often they are obliged to prove their inability 
 to pay by submitting to the most barbarous tortures. It would 
 be difficult for you to conceive such an oppression, and yet I 
 must add that this tyranny is more frightful and revolting in 
 the kingdom of Gingee. For the rest this is all I can say, for 
 I cannot find words to express all that is horrible in it." 
 
 Even the rule of Tirumal Nayak, who may be fitly called 
 the " magnificent," was oppressive. Tirumal Is'ayak was par- 
 tial to Christianity and treated the Jesuit missionaries with 
 marked kindness ; and he was even suspected of having em- 
 braced Christianity secretly. And yet this is the account given 
 by Father Proenza in a letter, dated Trichinopoly, 1659 : 
 ''Tirumal Nayakar was not spared to enjoy the victory; he 
 was called upon to render an account to God of the evils which 
 his treacherous policy had drawn on his people and on the 
 neighbouring kingdoms. He died at the age of 75 years after 
 a reign of 30 years. We cannot but acknowledge that he 
 possessed great qualities ; but he tarnished their glory towards 
 the end of his life by vices and follies which nothing could 
 justify. His reign was illustrious by works of truly royal 
 magnificence, among them being the pagoda of Madura, and, 
 above all, the royal palace, whose colossal proportions and 
 gigantic strength recall to memory the ancient monuments 
 of Thebes. He loved and protected the Christian religion, the 
 excellence of which he recognized, but never had the courage 
 to accept the consequence of this conviction. The greatest 
 obstacle to his conversi^jn arose from his two hundred wives, 
 the most distinguished of whom were burnt over his funeral 
 pile according to the barbarous custom of these nations." The 
 Government of Coimbatore under the Naiks ^ of Satyamangalam 
 appears to have been no better. 
 
 ^ Vide Coimbatore District Manual, pp. 89 and 90. There were, of course, also some 
 kings and queens whose names are revered to this day. The wisdom of Kistna Deva 
 Eaya in council and his prowess in war form the theme of many a legend in the Telugu 
 country. Of Queen Hudramma, of the Warangnl dynasty, who governe'd the kingdom as 
 regent during the minority of her grandson (A.D. 1257-129oj, Marco Polo writes as 
 follows : " This kingdom was under the rule of a king, and since his death forty years 
 ago, it has heen under his queen, a lady of much distinction, who for the great love she 
 bore him never would marry another husband, and I can assure you that during all that 
 space of 40 years she had administered her realm as well as her husband did, or better and 
 as she was a lover of justice, of equity and of peace, she was more beloved by those of her 
 kingdom than ever was lady or lord of theirs before." Of Queen Regent Mangammal 
 (A.D. 1689-17041 Bishop Caldwell in his History of Tinnevelly states : " She eschewed 
 wars and cultivated the arts of peace, and all through Tinnevelly, as well as in Madura 
 and the adjacent districts, she achieved a reputation which survives to the present daj' as 
 the greatest maker of roads, planter of avenues, digger of wpIIs and builder of choultries 
 the royal houses of Madura ever produced. It has become customary to attribute to her 
 everjf avenue found anywhere in the country. 1 have found, for instance, that all the 
 avenues in the neighbourhood of Courtallum are attributed to Mangammal. Having done 
 so much, «he is supposed to have done all,"
 
 12 
 
 8. The above long extracts show not only what the real 
 
 character of the administration of the Nayak 
 
 The enormous reve- (iynastv, who adomed their capitals with 
 
 nue of former rulers. «' ''■•r. ii-it li ^ 
 
 such magnificent buildings, was, but also 
 the enormous revenue which former Hindu rulers derived from ' 
 Mnd. According to the statements contained in the letters 
 of the Jesuit missionaries, the three viceroyalties of Madura, 
 Tanjore and Gingee were each bound to pay a tribute, varying 
 between 6 and 10 millions of francs or between £240,000 and 
 £400,000 to the Yijianagar sovereign, and if the Madura pro- 
 vince,- which was the most extensive of the three, paid the 
 higher sum, it is clear that the revenue taken from the ryots of 
 that province must have been at least three times that sum 
 or £1,200,000. In fact, most of the lands comprised within 
 the Madura province were in the hands of Poligars, who, it is 
 stated, paid to the local viceroys only one-third of the revenue of 
 their polliems, and out of this one-third, the viceroys had to pay 
 the tribute after defraying their own expenses. The Madura 
 province comprised the present districts, Madura, Tinnevelly, 
 Trichinopoly and a portion of the Salem district. The land re- 
 venue of these districts aggregates now 81^ lakhs of rupees 
 only, and when it is remembered that in the 16th and 17th 
 centuries much of the country now under cultivation was 
 covered with jungle and that the purchasing power of the pre- 
 cious metals was several times higher than it is at present, 
 an idea may be formed of the large share of the gross produce 
 which the Government of those days appropriated as revenue. 
 It seems probable, as, indeed, the records of the Jesuit Mission 
 state, that the tribute was seldom regularly paid, but was 
 exacted by the Vijianagar king by force of arms whenever he 
 was able to do so ; but the large amount of tribute fixed shows 
 that practically the only limit to the exactions which could be 
 made from the ryots was their ability to pay. The amount 
 of revenue taken by the sovereigns of the Madura and Tanjore 
 countries would be hardly credible, were it not for the fact that 
 there is ample evidence to show that in other parts of the pen- 
 insula the revenue taken by other sovereigns was equally great, 
 if not greater. In Orissa, it appears that in the 12th century 
 the Gangetic dynasty had a land revenue of about £450,000, or 
 a little less than three times the revenue derived by the British 
 Government from the same province, while the purchasing 
 power of the rupee was then 8 times of what it is now.'' The 
 land revenue of the whole of British India is 23 millions of 
 
 ' Vide extracts (appendix B, section I) from Hiinter'B Orissa as regards the revenue 
 derived by the Gangetio kings in the 12th century and the purchasing power of silver in 
 tboao days.
 
 IS 
 
 tens of rupees. In the time of the Emperor Akbar, the land 
 revenue of the territories subject to his rule, which did not 
 extend south of the Vindhya mountains, was 1 GJ millions Rx. in 
 1594 and 17^ millions in 1605. *In Jehangir's time the land 
 'tax continued at 17^ millions. -In the earlier years of Aurang- 
 zebe's reign (1665) the land revenue was 24 millions. It rose 
 to 34i millions in 1670 and to 38f millions in 1697. In the 
 last year of Aurangzebe's reign (1707) the revenue fell to 30 
 millions. " It is stated that in the official statement of the rev^e- 
 nues of the empire presented to the Afghan invader, Ahmed 
 Shah Abdali,^ when he entered Delhi in 1761, the land revenue 
 of the empire was entered as 34^ millions. The significance of 
 the above figures will be rightly estimated when it is remem- 
 bered that between the years 1593 and 1605 the price of wheat 
 averaged between 186 to -J24 lb. per rupee and barley 275J 
 lb. per rupee, i.e.^ the price of wheat and barley in the end of 
 the 16th century was between one-sixth and one-seventh of 
 what it is at present. 
 
 9. The Hindu Shastras consigned the king, who exacted 
 The devices resorted "lore than one-sixth^ or one-fourth of the 
 to with a view to in- pToducc, to infamy iu this world and the 
 
 crease revenue. 
 
 torments of hell in the next, but the 
 Muhammadan law had no such scruples. The Hedaia states : 
 " The learned in the law allege that the utmost extent of tribute 
 is one-half of the actual product, nor is it allowable to exact 
 more ; but the taking of a half is no more than strict justice 
 and is not tp'annical, because, as it is lawful to take the whole 
 of the person and property of infidels and distribute them 
 
 " The revenues of the Moghul emperors appear to have been carefully investigated 
 by Mr. Edward Thomas in his book, entitled The Rcvcmte Resources of the Moghul 
 Empire. The particulars available as regards the revenue of .the several provinces during 
 the time of the Moghuls have been extracted from the article on " India" in Hunter's 
 Gazetteer and printed in the appendix C, section I. The figures quoted appear indeed 
 fabulous. Take, for instance, the land revenue of Orissa — £450,000 — which, allowing for 
 the depreciation in the value of the precious metals, would at the present day be equiva- 
 lent to £3,600,000. The present area of cultivation in Orissa is 2 5 millions of acres. If 
 the whole area had been under cultivation in the r2th centui-y, the land tax per acre would 
 be £j-9-0; if only half, which is more likely, it would bo £2-18-0. The tax would 
 represent a much larger proportion of the gross produce than one-half. This seems 
 likely ; in the beginning of the present century the tax represented nearly |ths of the 
 gross produce, and the cultivators were left only the barest means of subsistence and 
 often not even that, a portion of the so-called land tax being met out of the earnings from 
 dairy produce and -domestic industries, such as weaving. Much of the revenue consisted 
 of payments in kind, and the Government sold the grain at monopoly rates. '1 he revenue 
 shown in the accounts, also were, to a great extent, nominal and much of it probably 
 remained unrealized, because it was imppssible to realize it. The fact, however, of the 
 demand being fixed so high as to absorb nearly the whole of the gross produce shows that 
 the Government took all that it could. Even the principle laid down by the l''.mperor 
 Akbar, who was immeasurably in advance of his time, for regulating land assessment will 
 not, according to modern standards, be accepted as liberal. He said: "There shall be 
 left fof every man who cultivates -his lands as much as he requires for his own support till 
 the next crop be reaped, and that of his family and for seed. This much shall be left to 
 him ; what remains is the land tax and shall go to the public treasury.''
 
 14 
 
 among the Mussalmans, it follows that taking half their in- 
 comes is lawful a fortiori.'''' The hint given as to the lawful- 
 ness of taking the whole of the property of the infidels was of 
 course not likely to be lofet on the ever necessitous Muham- 
 madan sovereigns. Emperor Akbar abolished many vexa^- 
 tious taxes and fixed the land tax at about one- third of the 
 gross produce, but his successors re-imposed all the abolished 
 taxes. The devices resorted to for enhancing taxation were 
 innumerable. In the provinces of Agra and Delhi the money 
 assessment had been fixed by Todar Mull at so much per beigah 
 of 3,600 'square ells (each ell between 38J to 41 inches) or 
 nearly an acre ; the tax was enhanced by the simple expedient ^ 
 of reducing the heigah to one-third of its original dimensions. 
 
 10. It is the enormous revenue which former rulers derived 
 Temples, palaces, &c., ^^^^ ^^ud, couplcd with Unlimited command 
 erected by means of of forccd labour, that enabled them to exe- 
 force about. ^^^^ ^j^^ stupcudous works, whether palaces, 
 
 temples, anicuts or tanks, which strike us with astonishment. 
 The celebrated temple at Tanjore built by the Cholas in the 
 11th century is stated to have taken 12 years to complete. 
 The architect, who designed the building and supervised its 
 execution, was one Soma Varman of Conjeeveram. A village, 
 called Sdrapallam (literally the hollow at the base of the scaf- 
 
 ^ Vide Grant's Political Survey of the Northern Circars. Appendix to the "Fifth 
 Report" of the Parliamentary Committeo on Indian affairs published by Messrs. Higgin- 
 botham & Co,, page 233. Colonel Wilks in his History of Mysore mentions 20 additional 
 taxes imposed by Chick Deo Raj, the able ruler of Mysore in 1672-1704. Four of 
 the taxes may be mentioned here as the reasons given in justification of them are very 
 characteristic : — 
 
 (1) Hid Hanna, a tax upon straw produced on land which had already paid kandaya 
 or the regular land tax, on the pretence that a share of the straw as well as of the graiji 
 belonged to Goverument. 
 
 (2) Leo Rai Wutta is literally loss or difference of exchange on defective coins. 
 Deo Raj exacted this tax as a reimbursement. This was soon after permanently added 
 to the ryot's payments. It averaged 2 per -cent, of the regular assessment. 
 
 (3) Beargee. — A potail, for example, farmed his village or engaged for the payment 
 of a fixed sum to Government. When his actual receipts fell short of the amount, he 
 compelled or induced the ryots to make good the loss by a proportional contribution. This 
 contribution was called Beargee, and the largest amount that was ever contributed was 
 collected under that name in addition to the kandaya of each ryot. 
 
 (4) Ycare Suncn. — Sunca is properly a duty on transit of goods or grain. Yeare is 
 a plough. The ryot instead of carrying grain to where a transit duty is payable often 
 sold it or consumed it in his own village. A tax of one to two gold fanams *on each 
 plough was imposed as an equivalent for the transit duty that would have been payable 
 on the produce if it had been carried outside the village.' This was called Yeare Sunca. 
 
 There is of course something to be said for these artifices resorted to with a view to 
 enhance taxation. Where law is professedly based on customary usages and there is no 
 direct legislation, if the revenue levied at customary rates becomes, owing to the fall in 
 the value of the precious metals or otherwise, inadequate, the only way in which custom 
 could be circumvented and a re-adjustment of taxation brought about would be the 
 adoption of legal ficticms of some sort or ot'her. 
 
 For a list (a long one) of taxes levied by Native sovereigns in former centuries see 
 appen(iices D and E, section I, to this memorandum. A grant in the reign of Rajaraja- 
 deva Chola, A.D. 1373, mentions revenue in paddy, tolls, small tax for the village police, 
 including three handfuls of paddy, the money from water and land, the tax on Jooms, the 
 tax on shops, the tax on goldsmiths, the tax on Ajivakas (Jains), the tax on oilmills, the 
 money from the sale of fish in tanks, the money from documents, &c. "
 
 15 
 
 folding), 4 miles from Tanjore, is believed to be the place where 
 the scaffolding, over which the block of granite, estimated to 
 weigh 80 tons, was carried to the top of the tower, 200 feet 
 high, rested. After visiting the Sun temple at Kunarak in 
 "Orissa, Abul Fazl, the famous minister of Akbar, is stated to 
 have written as follows : *' Near to Jagganath is the temple of 
 the Sun, in the erection of which was expended the whole 
 revenue of ()ris?a for 12 years. No one can behold this im- 
 mense building without being struck with amazement." Dr. 
 Hunter, in his " Orissa," mentions that the eastern entrance of 
 the temple was till lately surmounted by a chlorite slab elabo- 
 rately carved, and that its beauty tempted some English anti- 
 quarians to attempt to remove it to the Museum at Calcutta. 
 A grant of public money was obtained for the purpose, but it 
 sufficed only to drag the massive block a couple of 100 yards, 
 where it now lies quite apart from the temple and as far as 
 ever from the shore. Dr. Hunter states that the builders of the 
 12th century had excavated it in the quarries of the Hill States 
 and carried it by a land journey across swamps and over un- 
 bridged rivers for a distance of 80 miles. It is evident that, 
 to make this possible, human life and labour must have been 
 quite as cheap in the 12th century as in the time of the Pha- 
 roahs when the Great Pyramid ^^ was built. Impressment of 
 labour for public works wa§ till recently resorted to even under 
 British rule, and there cannot be the slightest doubt that in 
 previous centuries all public works were carried out by this 
 means. Hyder, when he invaded the Caruatic, seized many 
 artisans and carried them away to his own territories. to work 
 there." Colonel "Wilks, in his history of Mysore, gives an 
 account of the frightful oppressions caused by the impressment 
 of labour by Tippu for carrying out the fortifications of Seringa- 
 patam, where 20,000 labourers were kept employed for years. 
 
 11. In Tavernier's account of his travels we have a bird's 
 eye view of the state of India during the 
 
 Tavernier's account • i!oT-i_TT- ja i 
 
 of the state of the coun- Tcigus ot bhah Jchan and Am-angzebe, 
 try and the coadition of when the Moghul empire was at the height 
 *^^^°^^" of its power and glory. Tavernier was a 
 
 French goldsmith, who for purposes of trade made five voyages 
 between 1631— 7I668 to India, and resided several months and 
 
 *" " Senefru reigned 19 years, and his successor Khufu was the Cheops of the Greek 
 lists, the builder of the Great Pyramid at Gizeh. How he lived we know but dimly, and 
 the traditions preserved are not favorable, but he resolved to be buried grand])', fluman 
 labour was abundant and. cheap, for it was supplied by slaves and captives and by the 
 wretched peasantry, whose condition was little better. The huge masses of stone 
 required for the building of the pyramidal tomb were dragged from the quarries by 
 thou.saiTds of men harnessed by ropes to the rudely constructed cars and goaded by the 
 whips of the,task-masters. If they fainted and fell, they were left to die by the way- 
 side and other conscripts took their places." — Henry N. Inman.
 
 16 
 
 even years there on each occasion. He visited almost all parts 
 of India. Masiilipatam was in his time a great port and had 
 the best anchorage on the Bay of Bengal. It was the only 
 place from which vessels sailed for Pegu, Siam, Arrakan, Ben- 
 gal, Cochin China, Mecca, Horinuz, Madagascar, Sumatra and- 
 the Manillas. Wheeled carriages could not travel between 
 Golgonda and Masulipatam. It was with great difficulty that 
 Tavernier was able to take a small cart to Golgonda, and he 
 was obliged to take it to pieces in several places and carry 
 them. There were no wagons in the country between Golgonda 
 and Cape Comorin. Either oxen or pack horses were used for 
 the conveyance of merchandize. But in default of chariots, 
 says Tavernier, " you have the convenience of much larger 
 palanquins than in the rest of India ; for one is carried much 
 more easily, more quickly and at less cost." Palanquin bearers 
 were paid Rs. 5 each per mensem, and if the journey was long 
 and likely to occupy more than 60 days, they were paid at the 
 rate of Rs. 6. The most powerful of the sovereigns south of 
 the Ganges was the Rajah of Vellore (Vijianagar dynasty), 
 whose authority extended to Cape Coraorin, but in his country 
 there was no trade. Shah Jehan reigned for 40 years, less as 
 a king over his subjects than as a father over his children. His 
 dominions were well cultivated, but there were no roads or 
 bridges. The journey from Surat to Agra, occupied from 
 thirty-five to forty days, and one had to pay between 40 and 
 45 rupees for carriage for' the whole journey. Burhanpore 
 was a much ruined town, where, however, an enormous 
 quantity of very transparent muslins was made and exported 
 to Persia, Turkey, Muskovie, Poland, Arabia, Grand Cairo and 
 other places. There was abundance of cotton in the neighbour- 
 hood of Burhanpore. In Sironj there were a great many 
 merchants and artisans, and that was the reason why it con- 
 tained some houses of stone and brick. There was a large 
 trade in colored calicoes called chites which were sent to Persia 
 and Turkey. There was also made in this place a description 
 of muslin " so fine that when it is on the person you see the 
 skin as though it were uncovered." The merchants, however, 
 were not allowed to export it, and the Governor sent it all for 
 the* use of the Great Moghul's seraglio and of the principal 
 courtiers. Ahmedabad was a large town with considerable 
 trade in silken stuffs, gold and silver tapestries, saltpetre, 
 sugar, indigo, &c. In Benares, cottons, silken stuffs, and other 
 merchandize were sold. The manufacturers, before exposing 
 anything for sale, had to go to the person who had the Govern- 
 ment contract to get the king's stamp impressed on the pieces 
 of calico or silk manufactured, in default of which they were
 
 17 
 
 fined and flogged. Patna was one of the largest towns in 
 India. The houses, however, were not better than in the 
 majority of other towns and were nearly all roofed with thatch 
 or bamboo. In Dacca the houses were miserable huts made of 
 "bamboo and mud. Sales were conditional on payments being 
 made in coins coined during the current year. Foreign coins 
 brought into the country had to be taken to the king's mint 
 and there recoined, the expenses and seigniorage both in Persia 
 and India amounting to ten per cent. These regulations were, 
 however, generally evaded. In places where there were no 
 money-changers, people would not take silver coins without 
 putting them in the fire to test whether the silver was good. 
 Bitter almonds and cowries were used as small change. Al- 
 monds were brought from Persia, and these were so bitter that 
 there was no danger of children eating them. Thirty-five or 
 forty almonds went to the paisa which was ^^ of a rupee. Of 
 cowries, from 50 to 80 were exchangeable for a paisa^ accord- 
 ing to the distance of the place from the coast. " In India," 
 says Tavernier, ''a village must be very small if it has not a 
 money-changer, whom they call shroff y who acts as broker to 
 make remittances of money and issue letters of exchange. As 
 in general these changers have an understanding with the 
 Governors of provinces, they enhance at their will the rate of 
 exchange of the rupee for the paisa and of the paisa for these 
 shells. All the Jews who occupy themselves with money in 
 the empire of the Grand Seignior pass for being very sharp, 
 but in India they would be scarcely apprentices to these money- 
 changers." Merchants were frequently plundered by the 
 rajahs of the territories through which they had to pass. 
 The Eajah of Kalabagh was oppressive to merchants, but since 
 Aurangzebe came to the throne, says Tavernier, " he cut oi! 
 his head and those of a large number of his subjects. They 
 have set up towers near the town, on the high road, and these 
 towers are pierced all round by several windows where they 
 have placed in each the head of a man at every two feet. On 
 my last journey in 1665, it was. not long since the execution 
 had taken place when I passed by Kalabagh, for all the heads 
 were still entire and gave out an unpleasant odour." The 
 dispensation of justice was very summary and unencumbered 
 with forms. There were no jails, for the custom of the country 
 was not to keep men in prison. Immediately the accused was 
 taken he was examined and sentence pronounced on him and 
 executed without delay. Tavernier went to see Meer Jumla, 
 Nabob of Gundikot, a place in the Cuddapah district, who was a 
 General under the King of Golgonda at first and subsequently 
 under EnSperor Aurangzebe, and to whom he had shown some
 
 18 
 
 diamonds for sale and of whose abilities he speaks highly. 
 While he was with the Nabob, it was announced that 4 prisoners 
 had arrived. " The Nabob remained silent for half an hour 
 without replying, writing continually and making his secretaries 
 wi-ite, but at length he suddenly ordered the criminals to be 
 brought in, and after having questioned them and made them 
 confess with their mouths the crimes of which they were accused, 
 he remained nearly an hour without saying anything and continu- 
 ing to .write and making his secretaries write." Among these 
 4 prisoners was one who had entered a house and slain a 
 mother and her three infants. He was condemned forthwith 
 to have his hands and feet cut off and to be thrown into a field 
 near the high road to end his days. Another had stolen on the 
 high road, and the Nabob ordered him to have his stomach 
 slit open and flung in a drain. Tavernier says that he could 
 not ascertain what the others had done, but the heads vi both 
 of them were cut off. The men who worked at the diamond 
 mines at Golgonda earned only 2s. od. per mensem, though, 
 says Tavernier, they were men who thoroughly understood 
 their work. The wages being so small the men did not mani- 
 fest any scruple about concealing a stone found when they 
 could, which they did by putting it in their mouths, as they 
 had little or no clothing on their bodies. Tavernier gives the 
 following account of the peasantry and of the common soldiers : 
 *' One hundred of our European soldiers would scarcely have 
 any difficulty in vanquishing 1,000 of these Indian soldiers ; 
 but it is true, on the other hand, that they would have much 
 difficulty in accustoming themselves to so abstemious a life as 
 theirs. For the horseman, as well as the infantry, supports 
 himself with a little flour kneaded with a little water and 
 black sugar, of which he makes balls, and in the evening they 
 make kichri, which consists of rice cooked with dholl in water 
 with a little salt. When eating it, they dip their fingers in 
 melted butter. Such is the ordinary food of both soldiers and 
 the poor people. To which it should be added that the heat 
 would kill our soldiers, who would be unable to remain in the 
 heat of the sun as these Indians do. I should say, en passant, 
 that the peasants have for their sole garment a scrap of cloth 
 tied round their loins, and that they are reduced to great 
 poverty because, if the Governors become aware that they 
 possess any property, they seize it straightway by right or by 
 force. You may see in India whole provinces like deserts, 
 from whence the peasants have fled on account of the oppres- 
 sions of the Governors. Under cover of the fact that they are 
 themselves Muhammadans, they persecute the poor id\)lators 
 to the utmost, and if any of the latter become Muhammadans,
 
 19 
 
 it is iu order not to work any more ; they become soldiers or 
 fakirs, who are people who make • profession of having re- 
 nounced the world and live upon alms, but in reality they are 
 great rascals. It is estimated thai there are 800,000 Muham- 
 'madan fakirs and 1,200,000 among the idolaters." Tavernier 
 was a devout French Protestant Christian, and' he adds : 
 " Although these idolaters are in the depths of blindness to a 
 knowledge of the true God, that does not prevent them from 
 living morally well ; when married, they are rarely unfaithful 
 to their wives, and adultery is very rare among them." 
 
 Section II. — The condition of the Presidency at the end of the 
 ISth century when most of the provinces of Southern India 
 were acquired by the British. 
 
 12, In the appendix A, section II, will be found extracts from 
 official* reports describing in some detail the state of the country 
 at the commencement of' the present century when most of the 
 provinces of Southern India came under British occupation. 
 In the earlier centuries, although the country had suffered from 
 frequent wars, it had, with some intervals of anarchy, the 
 advantage of a more or less settled government. In the 18th 
 century, how^ever, the completest anarchy prevailed and the 
 condition of the people was miserable in the extreme. In the 
 beginning of the centurj^, the Moghul General Zulfikar Khan, 
 who had command of the Payen Ghat or the coimtry between 
 the Kistna and the Coleroon rivers, was engaged in incessant 
 and destructive wars for 19 years till the death of the Emperor 
 Aui'angzebe. " The express statement," says Colonel Wilks, 
 "of 19 actions fought and three thousand coss (6,000 miles) 
 marched by this officer in the coui'se of six months only may 
 afford some faint idea of the wretchedness in which the unfor- 
 tunate inhabitants were involved during that period, and these 
 miseries of war, in the ordinary coiu'se of human calamity, were 
 necessarily followed by a long and destructive famine and pesti- 
 lence. Within this period Zulfikar Khan appears to have made 
 three different expeditions to the south of the Cauverj", levjdng 
 heav}^ contributions on Tan j ore and Trichinopoly." Soon after 
 the Moghul conquest the Moghul power rapidly declined under 
 the assaults made on it by the Mahrattas. When the emperor 
 appointed a jaghirdar over a tract of country, the Mahrattas 
 appointed another, and both of them fleeced the cultivators "who 
 often had no alternative left but to leave off cultivatin"' and 
 become plunderers in their turn. Shortly after followed the 
 wars , consequent on disputed succession to the soubah of the 
 Deccan and the nabobship of the Carnatic and the struggle fo?
 
 20 
 
 supremacy between the English and the French. In the lan- 
 guage of the " Fifth Eeport," when the Northern Circars were 
 handed over by the Nizam to the English in 1766,- " the whole 
 system of internal management had become disorganized. Not 
 only the forms but even the remembrance of civil authority 
 seemed to be wholly lost." The Chingleput district had almost 
 entirely been depopulated by the wars with Hyder, so much 
 so that " hardly any other signs were left in many parts of the 
 country of its having been inhabited by human beings than the 
 bones of the bodies that had been massacred or the naked walls 
 of the houses, choultries and temples which had been burnt."" 
 The terrible memories of '' Hyder kaldbam," or the ravages of 
 Hyder's cavalry, still live in stories current among the common 
 people at the present day. Tan j ore, which was in the posses- 
 sion of the Nabob of Arcot in the years 1774 and 1775, was 
 almost ruined by "his inhuman exactions ; " and, according to 
 Rev. Schwartz, the famous Luthern missionary and an eye- 
 witness, the people would have preferred Hyder's invasion to 
 the Nabob's occupation. In the second year, the Nabob ex- 
 torted from the landholders no less than 81 lakhs of rupees 
 which is nearly double the present land revenue of the district. 
 It will have been seen from the extracts from the letters of the 
 Jesuit missionaries already given, that Ekoji took 80 per cent, 
 of the gross produce as revenue, leaving only 20 per cent, to 
 the mirasidars. On the accession of Pratap Singh to the 
 musnud the mirasidars' varam appears to have been 30 per 
 cent, of the pisanam and 45 per cent, of the kar crop, and the 
 rate for the pisanam crop was raised by him and his successors 
 till it amounted to 40 .per cent, in the time of Amir Singh. 
 How little the rights of the mirasidars were, owing to misgov- 
 ernmeut, understood at the time will be seen from the fact that 
 the English commissioners, who reported on the resources of the 
 country on the deposition of Amir Singh and the installation of 
 Surfoji under British auspices, characterized the settlement 
 made by Amir Singh fixing the Government share of the 
 produce at 60 per cent, and the mirasidars' varam at 40 per 
 cent., as a " profligate remission." In the zemindar and poli- 
 gar countries the only limit to the exactions to which the ryots 
 were subjected was their ability to pay ; the customary share 
 of the produce belonging to Government was nominally half, 
 but additional taxes were levied on various pretexts, reducing 
 
 " Even in the Tanjoro delta a large part of the population must have died of famine. 
 In 1781, the year liefore Hyder's invasions the outturn of crop in the Tanjore delta was 
 11,909,085 kalams of paddy. In 1781-82 the outturn was 1,808,808 kalams, and in 
 1782-83 only 1,603,122 kalams. The outturn gradually rose again till it r^fiched 
 10,416,746 kalams in 1706-97.— Tif^e Tanjore District Manual, page 813.
 
 21 
 
 the share enjoyed by the lyots to -i- or J-. Where there were 
 no zemindars, renters were employed, especially by Mnhammadan 
 Governments, to collect the revenue and these renters mercilessly 
 fleeced the people. Mr. Wallace, the Collector of Trichinopoly, 
 .writing in 1802, has given an account of the revenue adminis- 
 tration of the district under the Nabob. The Government tax 
 on 'wet lands was received in grain, and the whole of the grain 
 produced was a strict Government monopoly, so strict, indeed, 
 that if one ryot lent to another a small quantit}^ of grain for 
 consumption, he was severely fined. The ryots were compelled 
 to pay in grain even the taxes on swarnadayam (literally 
 money-rented) or garden lands which were ordinarily payable 
 in money. The grain was taken from the mirasidars at a 
 valuation of 7 or 8 fanams per kalam and sold back from the 
 Government granaries at 9 or 10 fanams per kalam. When 
 Mr. Wallace settled the Government revenue he had to base 
 his settlement on the prices of grain in the adjoining district 
 of Tanjore, as the natui*al prices of grain in the Trichinopoly 
 district itseK could not be ascertained in consequence of the 
 Government monopoly of grain which had long been subsisting 
 there. Of all the portions of the Presidency the most prosperous 
 were perhaps Malabar and South Canara, which, owing to their 
 isolated position, had not suffered from frequent and destructive 
 wars like other provinces. ' Both these districts were, however, 
 ruined by the exactions of Hyder and Tippoo, and, more especi- 
 ally, by the attempt of the latter to convert all the inhabitants 
 to Islamism. Most of the landholders in Malabar fled to Travan- 
 core and Tippoo carried away nearly 60,000 Christians of South 
 Canara into captivity to Mysore. Colonel, afterwards Sir 
 Thomas, Muni'o, who was Collector of Canara, wrote : " Canara 
 has completely fallen from its state of prosperity. The evils 
 which have been continually accumulating upon it, since it 
 became a province of Mysore, have destroyed a great part of 
 its former population and rendered its remaining inhabitants as 
 poor as those of neighbouring countries. Its lands, which- are 
 now saleable, are reduced to a very small portion and lie chiefly 
 between the Kundapur and Chandragiri rivers and within 5 or 6 
 miles of the sea. It is not to be supposed, however, that the 
 whole of this tract can be sold, but only that saleable lands are 
 scattered throughout every part of it, thinner in some places 
 and thicker in others, particularly in the Mangalore district. 
 There is scarcely any saleable land, even on the sea coast, any 
 where to the northward of Kundapur, or any where inland from 
 one end of Canara to the other, excepting on the banks of the 
 Mangalore and some other great rivers. It is reckoned that the
 
 ^2 
 
 population of the country has been diminished one-third within 
 the last 40 years and there can be little doubt that its property 
 has suffered much greater reduction. Garisappa, Ankola and 
 Kundapur, formerly flourishing places, contain now only a few 
 beggarly inhabitants. Honawar, once the second town in trade 
 after Maugalore, has not a single house ; and Mangalore itself 
 is greatly decayed." 
 
 13. Dr. Buchanan, who travelled from the East to the West 
 Coast in 1800, mentions that the country was infested by 
 gangs of marauders to such an extent that " the smallest village 
 of 5 or 6 houses is fortified. The defence, of such a village 
 consists of a round stone wall, perhaps 40 feet in diameter and 
 6 feet high. On the top of this is a parapet of mud with a 
 door- way in it, to which the only access is by a ladder. In 
 case of a plundering party coming near the village, the people 
 ascend this tower with their families and most valuable effects 
 and having drawn up the ladder defend themselves with stones, 
 which even the women throw with great force and dexterity. 
 Larger villages have square forts, with round towers at the 
 angles. In those still larger or in towns, the defences are more 
 numerous and the fort serves as a citadel; while the village or 
 pettah is surrounded by a weaker defence of mud. The inha- 
 bitants consider fortifications as necessary to theii* existence and 
 are at the expense of building and the risk of defending them. 
 The country indeed, for a long series of years, has been in a 
 constant state of warfare and the poor inhabitants have suffered 
 too much from all j)arties to trust in any." The internal trade 
 was greatly restricted by the number of choukies or custom- 
 houses existing in the country and the absence of a recognized 
 currency. Every petty poligar levied customs duty on goods 
 passing through his estate. In the Salem district there were no 
 less than 25 choukies on 206 miles of road or one for every 8 
 miles. Colonel Eeade, Collector of Salem, in 1797, calculates 
 that the customs duties alone levied on goods sent from Salem 
 to the coast, a distance of 150 miles, added 40 per cent, to the 
 cost price of articles exclusive of the cost of carriage, and the 
 result was that it did not pay to send most of the articles in 
 demand to the coast. In Salem and the Ceded districts no less 
 than 40 different descriptions of coins were current, and, as 
 most of them did not bear to one another the relation of multi- 
 ples or sub-multiples, the shroffs were enabled to cheat poor 
 people right and left. Tippoo Sultan used to change the value 
 of the coins in a very arbitrary manner. When he was about 
 to pay his troops the nominal value of every coin was raised 
 very high and kept at that level for a few days, and during
 
 23 
 
 this period, the soldiery were allowed to pay off their debts at 
 the high valuation. tinder the designation moturpha^ taxes ^■- 
 were levied on all artisans and laborers, and these bore hardest 
 on the poorest classes. 
 
 There were no courts of justice, the settlement of disputes 
 being left entirely to the villagers themselves and the heads of 
 castes and clans. Even in the province of Tanjore, where, 
 owing to its comparative prosperity, it might be supposed 
 that the necessity for regular coiu'ts 'of justice would have 
 been felt, a court was established by the Rajah of Tanjore 
 only about the close of the last century at the suggestion 
 of Rev. Schwartz. Colonel Reade states: "When the district 
 (Salem) was ceded to the Company the Chetties of certain 
 castes, exercising judicial authority over their clients, were in 
 the practice of levying taxes on the pullers, a caste of husband- 
 men, on the five castes of artisans, viz., goldsmiths, black- 
 smiths, carpenters, braziers, and stone-cutters, and on washer- 
 men, barbers, pariahs, chucklers and others. The Chetties 
 likewise exacted fines for murder, theft, adultery, breach of 
 marriage conti-act, also for killing brahmani kites, monkeys, 
 snakes, &c. The Government, in consideration of these pri- 
 vileges, had imposed a tax on the Chetties ; but, conceiving 
 that I and my assistants might administer justice with greater 
 impartiality than the Chetties, their judicial powers were 
 annulled and with them the tax on castes," 
 
 14. The early reports teem with evidence of the extreme 
 poverty of the vast majority of the agricultural classes. Dr. 
 Buchanan states that " the peasantry here as in almost every 
 part of India are miserably poor. One great cause indeed of 
 the poverty of the farmers and the consequent poverty of crops 
 in many parts of India is the custom of forcing land on people 
 who have no means of cultivating it." Grant, in his Survey 
 of the Northern Circars, writes in 1784 that the peasantry, 
 '' in order to carry on the common practices of husbandry 
 
 ^^ No less than thirty-five taxes of Coimbatore district were abolished by Major 
 McLeod. These were — (1) tax on potters, (2) Nama and Vibhuti khancha or taxes on 
 those wearing the Namam and sacred ash marks, (3) fees at weekly markets, (4) tax 
 on dye stuifs, (5) on ghee, (6) on tobacco, (7) on heaps of grain, (8) on chunaiu, (S) on 
 taliaries, (10) on nirgantis, (H) on pack-bullock keepers, (12) on dancing girls, (13) on 
 labour maistries, (14) on women committing adultery, (15) rents of lotus leaves, (16) on 
 gardens in backyards and plantations in river banks, (17) on cattle grazing in paddy 
 fields, (18) on young palmyra nuts, (19) on tamarinds, (20) on balapam (pot stomi or soap 
 stone), (21) on betel nuts, (22) tax on the measurement of grain on the sharing system, 
 (23) on offerings at Mahadeveswaramalai, (24) l»^vies for charity, (25) taxes on mamoties 
 (hoes^, (26) on village fees to ^^.llage artisans, (27) on the sale of cattle, (28) on cattle 
 stalls, (29) on water lifts, (30) on fishitjg, (31) on looms, (32) contributions levied by 
 amuldars from ryots whenever there was any deficiency in the amount agreed to be paid 
 by the^latter to Government, (33) contributions levied for the expenses of the Tahsildar, 
 l34) payment of one fanam by each ryot with his first instalment of assessment and 
 (35) plougli tax {vide Coimbatore District Manual). See also appendix B, section II, 
 for a list of the taxes levied and the rates at which thev were assessed,
 
 24 
 
 in places where the culture is simple and the meanest as in 
 the Circars, find it expedient, at the different seasons, to bor- 
 row money at high interest in proportion to the risk incurred 
 by the lender, and never under two per cent." Sir Thomas 
 Munro, writing in 1797, says ''many of the ryots are so poor' 
 that it is always doubtful whether next year they will be in 
 the rank of cultivators, or laborers, and few of them so rich as 
 not to be liable to be forced by one or two bad seasons to 
 throw up a considerable part of their farms. Many of the 
 middling class of ryots often fail from the most trifling acci- 
 dents. The loss of a bullock, or of a member of the family who 
 worked in the fields, or confinement to bed by a fit of sickness, 
 frequently disable them from paying their usual rent during 
 the ensuing year." The realization of Government revenue by 
 means of torture was one of the recognized institutions of the 
 country and the practice indeed continued, though in a miti- 
 gated form, down to 1855. Mr. Forbes, the Collector of 
 Tanjore, writing in that year, states that "the ryot will often 
 appear in the cuteherry with his full liabilities in his possession, 
 tied up in small sums about his person, to be doled out rupee by 
 rupee according to the urgency of the demand, and will some- 
 times return to his village, having left a balance undischarged, 
 not because he could not pay it, but because he was not forced 
 to do so." The above quotation will serve to show how abject 
 and demoralized was the condition of the agricultural classes in 
 those days. 
 
 Section III. — The Condition of the Agricultural Classes under 
 British Administration during the first half of the present 
 century. 
 
 15. The bulk of the territories under the Government of 
 „ , , ^ ,,, Madras, with the exception of the Northern 
 
 Early land settlements ri' L^ r^-i • ^ t • ^ ' t p 
 
 and the condition of the Oircars, the (jhingleput ]aghir, and a tew 
 country during the first trading Settlements, were acquired by the 
 
 30 years of the century. t-< t t i , ,-. -. h,7x^ i noo,f» 
 
 English between the years 1792 and 1803. 
 At the conclusion of the first war with Tippoo in 1792, the 
 districts of Salem, Dindigul and Malabar were acquired. The 
 second Mysore war in 1799 added Canara and Coimbatore. 
 In 1800 the whole territory south of the Kistna and Tunga- 
 bhadra rivers, comprising the districts of Cuddapah, Bellary 
 and Anantapur and portions of Kurnool, were ceded by the 
 Nizam. In 1799 the Eajah of Tanjore resigned his sovereign 
 rights over that province to the English, and in 1801 the 
 Nabob of the Carnatic made over to them the districts of 
 Nellore, North Arcot, South Arcot, Trichinopoly, Madura and 
 Tinnevelly. The British power may thus be said to have been
 
 25 
 
 fully established in this Presidency in the beginning of the 
 century, the only territorial changes that have since occurred 
 being the annexation of Kurnool Proper in 1838, the transfer 
 of North Canara to the Bombay Presidency in 1862, and the 
 addition of Bhadrdchalam and Eekapalle taluks transferred 
 from the Central Provinces to the Goddvari district in 1874. 
 Previous to the reforms in the Civil Service introduced by 
 Lord Cornwallis, there was little to choose between English 
 administration and that of the Native Princes so far as the 
 agricultural classes were concerned. English -WTriters and fac- 
 tors, who were paid £10 and £20 per annum and were allowed 
 liberty to carry on private trade, found themselves suddenly 
 transformed into governors of provinces and were not slow to 
 make the most of theii' opportunities. Within a short time, 
 however, after Lord Cornwallis' reforms, the administration had 
 wonderfully improved and a succession of great administrators, 
 amonof whom may be mentioned Eeade, Munro, Graham, 
 Hurdis, Wallace, Hodgson, Thackeray, came to the front. Their 
 first measures were directed towards the pacification of the 
 country and the suppression of the power of the poligars, 
 who, with large bands of armed followers, plundered the 
 country, committing the greatest excesses ; there were in the 
 Ceded districts alone 80 poligars, who had under their com- 
 mand 30,000 armed peons. The poligars in the Madura and 
 Tinnevelly districts especially, fought desperately for their 
 independence, but were finally reduced to submission. Next 
 followed settlements of land revenue, in the introduction of 
 which many grievous mistakes were committed. The resources 
 of the country had been brought to the last stage of exhaus- 
 tion by the previous mis-government wars and famines, and, 
 before there was time to ascertain the true revenue capabilities 
 of the several districts, orders were received from Bengal for 
 the immediate carrying out of the permanent settlement of the 
 revenue with zemindars if such were in existence and for creat- 
 ing zemindars where they did not exist. The Governor-General 
 declared that he was determined to dismiss every officer who 
 neglected or delayed to carry out these orders. The districts of 
 Chingleput, Salem and Dindigul were divided into a number of 
 mittahs and sold to the highest bidders. Most of the pur- 
 chasers, after pillaging the ryots, failed in the course of a year 
 or two and the whole settlement collapsed. The system of vil- 
 lage leases was next tried, but with the same result. In the 
 Ceded districts especially, where, in supersession of the ryotwar 
 system introduced by Colonel, afterwards Sir Thomas, Munro. 
 village leases were introduced, the results were disastrous. It 
 was expected that the villagers as a body would agree to the 
 
 4
 
 S6 
 
 leases, but, as the assessment was high, the leases were taken 
 up by mere speculators, the renters were ruined, the ryots 
 impoverished, and the villages returned to Government. In 
 the Eayadrug taluk alone Sir Thomas Munro states " nearly 
 half the ryots had emigrated, most of the headmen were re- 
 duced to poverty, and many of them had been sent to jail. 
 The substantial ryots, whose stock supported the agricultuj-e 
 of the villages, were gone." The fact was that the old assess- 
 ments, which were continued in their entirety or with only 
 slight reductions in the first years of British administration, 
 were excessive. Under the loose systems of revenue adminis- 
 tration which had prevailed under Native Governments, tilthough 
 the full demand was occasionally realized, the ryot had a 
 great many opportunities of cheating the Government of its 
 dues with the connivance of the revenue agents. Under the 
 more regular system introduced by the Biitish, however, oppor- 
 tunities for evasion and peculation were less frequent. Sir 
 Thomas Munro calculated that out of Rs. 100, the value of the 
 gross produce, the Government assessment was represented by 
 lis. 45-12-0 and the expenses of cultivation by hs. 40, leaving 
 a profit to the ryot of only Es. 14-4-0.^^ The profit was liable 
 to be turned into loss not only in bad seasons, which were by no 
 means infrequent, but also in good seasons when the prices of 
 produce fell. He was of opinion that to encourage cultivation 
 of land and give it saleable value, the Government demand 
 should be limited to one-third of the gross produce, and strongly 
 urged on Government, in 1807, the desirability of reducing the 
 assessment on wet and dry lands by 25 and on garden lands by 
 33^ per cent. The Government, while acquiescing in the justice 
 of the recommendation, was unable to sanction it in consequence 
 
 '3 Mr. (?. E. Uussel, the Collector of Masulipatam, writing in 1819, estiniHtes the average 
 profit of cultivation made by the ryots in the zemindari villages in the Kistna delta at 
 even less. His calculations are as follows for wet lands : — 
 
 Value of gross produce 
 
 Government assessment . . 
 Durbar charges and other taxes. . 
 
 Expenses of cultivation 
 
 BS. 
 
 A. p. 
 
 160 
 
 
 
 E8. A. P. 
 
 
 ;. 80 
 
 
 .. 27 3 
 
 
 107 
 
 3 
 
 42 
 
 8 
 
 Ryot's profit .. 10 
 
 5 
 
 A ryot's family, consisting of five persons, will cost for grain alone Es. 33. Mr. Rus 
 adds : "The plough its.lf aff'irds little towards his support, and were it not that it giA 
 
 Ruseel 
 support, ana were it not that it gives 
 him a. valunble right of pasture for his cattle and ground for liis pumpkins, he could not 
 subsist. A single she-bulfalo will yield him Rs. 8 per annum in ghee alone, and the profit 
 he derives from this source added to th< labour of his women enable him to procure 
 the necessaries of life, but even tliese aids will not always affoid him the means of subsis- 
 tence, and for 2 or 3 months in the year tlie fruit from his pumpkin garden, mixed up 
 with his buttermilk or a very sm;ill proportion of meat, is the daily diet of his family " 
 
 Dr. Macleane in hin 3f'i»U"l of Adininistn'fion fitntes of the ryots of Nellorq,; "His- 
 torically it is said that the farmers devoted themselves to cattle breeding in despair of 
 obtaining remunerative priceg from agricnltnre."
 
 27 
 
 of orders received from England for the remittance of an addi- 
 tional sum of a million sterling annually, accompanied by a 
 threat from the Court of Directors, that unless this were done 
 they would take the question of reducing the establishments in 
 their o-^ti hands. When Sir Thomas Munro became Governor 
 of Madras in 1S22, he sanctioned the proposals made by him- 
 seK for the reduction of assessment in the Ceded districts and 
 granted alleviations in other districts also. These measures, 
 though they averted the further decline of the coLintry, had, 
 owing to adverse cii'cumstances, little effect in improving the 
 condition of the ryots. Within 24 years there were no less 
 than four famines, viz., those of 1799, of 1804-7, of 1811-12 
 and of 1Sj:4. Nine years later in 1833-34 occurred the famine 
 known as the Guntdr famine, which, though confined to a small 
 area, was more destructive in its effects than that of 1870-78. 
 The mortality and suffering ^* caused by it were terrible. In 
 the Guntiir portion of the Kistna district from one-third to half 
 of the whole population perished. 
 
 16. From 1834 down to 1854 there was no famine of a 
 
 Agricultural depres- severe type, though the country suffered 
 
 sion between 1834 to from a serics of unfavorable seasons. 
 
 1854 and its causes. m „ • li. i j 
 
 inere was a severe agruiultui'al depression 
 on account of the low prices which then ruled of agricultural 
 produce. This was due to causes which were in operation 
 throughout India and were not merely confined to this Presi- 
 dency. Owing to the slow development of export trade and 
 the remittance of considerable amount of specie to England, 
 the currency of the country had become quite insufficient for 
 its requirements, under the altered conditions brought about 
 by English rule, viz., the development of internal traffic conse- 
 quent on a quarter of a century of peace and the substitution 
 of cash payments for payments in kind both in the receipt 
 of taxes and the disbursements of Government. On this 
 subject Mr. Pedder writes : " India does not produce the 
 precious metals and can obtain her currency only in exchange 
 for exports. Before the introduction of British rule there 
 was comparatively little trade ; much of what trade there was 
 was carried on by barter, and a considerable portion of the 
 receipts and disbursements of Government was in kind, not in 
 
 '* Captain (afterwards Colonel) Walter Campbell, who was an ej^e^witness, describes the 
 horrors of the famine at .Masulipatam in the c ntre of the Kistna delta. He states : " The 
 description in ' the siege of Corinth ' of dogs gn .wing human skulls is mild as compared 
 with the scenes of horror we are daily forced to witness in our morning and evening 
 rides. . . . It is dreadful to see what revolting food human beings may be driven to 
 partake of. Dead dogs and horses are greedily devoured by these starving wretches ; and 
 the other day an unfortunate donkey having strayed from the fort, th> y fell upon him 
 like a pack of, wolves, tore him limb from limb a,Q(l devoured him on the spot."
 
 28 
 
 cash. Hence, if the circulating medium was limited in quan- 
 tity, its ' duty,' that is, the number and amount of the 
 transactions in which it had to be exchanged for goods or 
 labour, was still more limited and prices were high. After 
 the general introduction of British rule, a heavier ' duty ' was . 
 thi'own upon the cii'culating medium by the extension of 
 trade, by the greater demands of the revenue for cash (espe- 
 cially of the land revenue, assessments in kind being converted 
 into assessments in coin), by the system of the British Gov- 
 ernment of paying its army and its officers in money. The 
 circulating medium could not expand to the extent demanded 
 by this altered state of things ; importation of bullion was 
 not sufficient to make up the amount annually withdrawn from 
 circulation by waste, by being hoarded or by being converted 
 into ornaments; or at any rate was not sufficient to increase 
 the currency in proportion to the greater ' duty ' thrown on it, 
 while at the same time, with peace and a settled government 
 there was a great extension of cultivation and consequent 
 increase of production. Hence prices steadily fell." ^^ This 
 period was one of acute suffering to the agricultural classes and 
 the revenues declined greatly in several districts. 
 
 17. In the reports of the Collectors on the state of the 
 several districts during this period, and those of the Com- 
 missioners appointed to enquire into the causes of the decline of 
 the revenues in the several parts of the Presidency, we have 
 full information regarding the condition of the ryots in those 
 days. I shall here mention the principal facts gathered from 
 these reports as regards typical districts. Notwithstanding the 
 large remissions sanctioned by Sir Thomas Munro in the assess- 
 ment of the Ceded districts, we find the Collector of Cuddapah, 
 Mr. Dalzell, writing to the Board in 1828 as follows : " The 
 present system of revenue management is clearly favorable to 
 the more substantial class of ryots in a degree beyond that of 
 our predecessors (Hyder and Tippoo), but it is to be feared 
 that the case is different with the poorer cultivators. . . . 
 Our system, it is true, admits of the entire remission of rent 
 when cultivation is prevented or crops are actually destroyed by 
 want of water, but it does not allow much for deficient crops. 
 . . . . The ryots are more in the hands of merchants than 
 perhaps you are prepared to hear. . . . The peasantry 
 are too poor to more than keep up their cultivation with 
 Takavi when they have met with no extraordinary losses. 
 
 ^^^ *''''^'"''"' "-^ ^^oral and Material Progress of India for 1882-83, vol. I, page 
 Tocn ^ "^°^^ detailed explanation of the causes of the fall of prices between tSSO and 
 
 1850, see also the Article from the Bombay Quarterly Journal, 1857, printed in the 
 appendix A, section III. "^ ^ ,
 
 29 
 
 When they have met with such losses from the death of cattle 
 or other cause, it is impossible to repair them without assist- 
 ance from Takavi." By 1854, however, the condition of the 
 ryots in this district had considerably improved. The orders 
 of the Court of Directors allowing to the ryots the full benefits 
 of the improvements to land carried out by them at their own 
 expense had led to the construction of substantial wells and 
 the increase of the produce of lands irrigated by them. The 
 cultivation of indigo had increased and the poorer ryots had 
 been assisted by advances by European firms and thus freed 
 from the clutches of usui'ious money-lenders. Sir Thomas 
 Munrojestimated the value of indigo exported in 1805 from 
 the Ceded districts at Es. 4,37,500. The exports in 1851 from 
 the Cuddapah district alone were valued at Es. 13,75,182, 
 notwithstanding the fact that the price of indigo had decreased 
 considerably since 1805. The cultivation of sugarcane had 
 also considerably increased, the exports of jaggery in 1851 
 amounting to 11 lakhs of maunds. The trade of the district 
 was, however, much hampered by want of roads. The Col- 
 lector writes in 1852 : " At present the journey to Madras is 
 dreaded by the ryots, and they object to allow their cattle to be 
 employed in conveying indigo and other produce to the Presi- 
 dency where it is required for shipment to Europe. The small 
 number of carts and the heavy rate for carriage together 
 with the small quantity that can be placed on the loaded cart 
 on account of the badness of the road act as a prohibition to 
 the export of the various kinds of oil-seeds, &c., which would 
 find a ready market in the ports of the sea coast. In the 
 neighbourhood of the Presidency I am informed that 50 or 55 
 maunds (of 25 lb.) is the usual cart-load, whilst here, with good 
 bullocks, under 40 can only be placed in a cart. The hire 
 per gow of 10 miles in the south is 8 annas, whilst here not 
 less than 10 annas is accepted and they demand often 1 rupee. 
 The hii-e from Cuddapah to Madras has of late been as high 
 as 20 and 24 rupees which raises the hire of cart per gow to 
 the exorbitant sum of about Es. 1-8-0, nearly tripling the 
 current rate in the south." In the Bellary district, on the 
 other hand, the ryots had made no progress. The incidence of 
 the land revenue assessments, notwithstanding Sir Thomas 
 Munro's reductions, continued, owing to the heavy fall in the 
 prices of produce, oppressive, while this district enjoyed no 
 special advantages like Cuddapah in regard to good subsoil 
 water-supply, and extension of indigo cultivation. Mr. 
 Me]lor, the Collector, reported in 1845 : "The universal com- 
 plainlj and request of the ryots is to be allowed to reduce their 
 farms, a, convincing proof that cultivation is not profitable.
 
 30 
 
 Land has never been saleable. Eyots, formerly substantial and 
 capable of laying out their capital on the lands and liquidating 
 their Sircar demand, reserving their produce until they could 
 get a favorable price, are now sunk in debt bearing heavy 
 interest, entirely subject to their creditors ; and were it not for , 
 the aid of the Collector through his revenue subordinates, one- 
 half, or at least one-third of the highly assessed lands would 
 ere this have been thrown up. Husbandry is not carried on 
 efficiently, and consequently the land seldom returns what it 
 ought and is capable of. The number of puttah holders has 
 increased, but they are a poor class who seek a maintenance 
 only in husbandry with less spirit, and by no means to be com- 
 pared with the substantial farmers who have fallen into diffi- 
 culties and disappeared from the rent roll of the district. With 
 regard to food and raiment the majority of them are poorly 
 clad and ill-fed, and it is impossible to arrive at any other 
 conclusion than that poverty is the cause. It is no new doc- 
 trine ; Sir Thomas Munro declared that the ryots of the Ceded 
 districts were the poorest of the Company's subjects." Writing 
 in 1851, or six years later, Mr. PeUy gives the following 
 account of the Bellary ryots : "I find that out of the whole 
 body of farmers only 17 per cent, are in what may be termed 
 to be good circumstances, substantial ryots who have capital 
 enabling them to discharge their kists without recourse to the 
 money-lender. About 49 per cent, are obliged to borrow money 
 by mortgaging their crops and stock and 34 per cent, are 
 obliged to sell their crops as soon as reaped and even their 
 stock to pay their kists." Eajahmundryj i.e.^ the present 
 Godavari district, which may now be said to be the garden of 
 the Madras Presidency, appears, from the report of Sir Henry 
 Montgomery in 1844, to have been on the verge of ruin. Of 
 the ten years between 1831-1840, 1831 and 1832 were famine 
 years, in 1835, 183d and 1837 the season is described as 
 '' unfavorable," and in 1838, 1839 and 1840 as " calamitous." 
 The population which in 1830 had been 695,016 had decreased 
 in 1840 to 533,836. The closing of the Government weaving 
 factories in consequence of the abrogation of the Company's 
 trading privileges in 1833 had thrown large numbers of 
 weavers out of employment, and money to the extent of 7 lakhs 
 of rupees on an average per annum, which was in circulation 
 in connection with the maintenance of the factories, was with- 
 drawn. The value of exports of piece-goods had decreased 
 from Rs. 9,74,075 to Es. 1,59,312. Notwithstanding a series 
 of bad harvesi^s, prices of grain continuously declined owing to 
 the competition of cheap rice from Arrakan. Of the condition 
 of the ryots under the zemindars Sir Henry Montgomery writes :
 
 31 
 
 '^ The system of management was formed on the sole principle 
 of extracting from the ryots the utmost possible amount of 
 present revenue. In adverse seasons all that could be taken of 
 the ryots was claimed on the .pftrt of the zemindar whose 
 •demand purposely exceeded the means of the ryots in ordinary 
 seasons. lu years of abundant produce, the deficiency of bad 
 seasons was made good, so that in either case the ryot was left 
 but the barest means of subsistence. . . . The Visabadi 
 kist, which remained the standard beriz, was itself immode- 
 rately heavy, exceeding the possible amount of ordinary collec- 
 tions and not likely to be equalled in extraordinarily favorable 
 times, by the over-rated value of the gross produce which itself 
 was also over-estimated. It served, however, for a never- 
 failing pretext for the demand of balances against those who, 
 by industry or any fortuitous circumstances, procured the means 
 of answering it in part, and was with this view continued." 
 He, however, adds : " Though a grievous and oppressive 
 dependence of the ryot characterized the management of zemin- 
 dars and proprietors, yet the pressing wants of the ryot were 
 in some degree seasonably supplied. Cultivation was com- 
 pulsory and maintained by seasonable advances, and though 
 the ryot was left little more than what was absolutely necessary 
 for his maintenance, some care was taken against the discour- 
 agement of agriculture by his distress." Sir Henry Mont- 
 gomery recommended the construction of the Goddvari anient, 
 and from 1^14 the condition of the district rapidly improved; 
 from that year the seasons began to improve ; French ships 
 flocked to Cocanada for cargoes of grain, and the large expen- 
 diture on public works afforded work to thousands of the 
 labouring classes. Sir "Walter Elliot's report on Guntiir shows 
 that the terrible famine of 18.^3 had utterly prostrated the 
 district, and the epidemic which broke out in the following 
 year and prevailed to such an extent that " a man in perfect 
 health was hardly to be seen anywhere," rendered the recovery 
 of the country impossible for a long series of years even under 
 the most favorable circumstances. In Nellore, the ryots had 
 become impoverished by the low prices of grain which ruled. 
 Indigo cultivation was tolerably remunerative, but sugarcane 
 cultivation had entirely ceased, owing to its inability to compete 
 with jaggery imported from the Ceded districts. The total 
 cropped area of the district had, however, risen from 244,319 
 acres in 1801 to 389,802 acres in 1850. Garden lands had 
 entirely ceased to, be cultivated owing to the increased pressure 
 of the assessment consequent on the fall in the prices of grain. 
 As r.»gards North Arcot, the Collector, Mr. Bourdillon, re- 
 ported : '.' The ryots are in worse condition than they were at
 
 32 
 
 the beginning of the century. However this may be, their pre- 
 sent condition is indubitably bad and must be improved. The 
 o-reat body of them are certainly poor ; their food is deficient 
 in quantity as well as coarse ; their clothing is scanty and poor, 
 and their dwellings extremely mean ; all this combined with 
 gross ignorance." The unequal pressure of the assessment had 
 the effect of throwing out of cultivation lands of the better 
 qualities. The Collector of South Arcot, however, writing 
 in 1840, gave a somewhat more favorable account of the ryots 
 in his district. The population in 20 years had increased from 
 455,020 to 591,667, and cultivating ryots from 60,000 to 
 90,000. The price of labour had increased by 25 per cent. In 
 the use of spring carriages, fine cloths, the style of houses, 
 furniture and ornaments, there were indications of improvement. 
 Agriculture was, however, in a backward condition owing to 
 heavy and unequal assessment and two thirds of the cultivable 
 lands were waste. Tanjore did not suffer to the same extent 
 as other districts from agricultural depression owing to the 
 improvements to irrigation works carried out by Government 
 and increased production, and to the extension of communi- 
 cations and the growth of an export trade in grain with Madras 
 and Ceylon. As regards the Coimbatore district, the Collector 
 writing in 1840 remarks that of the previous ten seasons nine 
 had been bad ones, and that the land revenue had fallen in 
 consequence. There was not much variation in the value of the 
 trade in piece-goods. The trade in coarse piece-goods exported 
 to Bombay had improved, but that in fine goods had been anni- 
 hilated by English manufactures. Prices of agricultural pro- 
 duce had risen owing to a succession of bad seasons. The 
 wages of labour had also risen. " In India " the Collector 
 remarks "greater income does not lead to improvement in the 
 style of living, but increase of expenditure on marriages and 
 religious ceremonies and in feeding poor relations." Bandies 
 were coming into use ; 30 years before they were not used by 
 merchants. Money was said to be more easily procurable than 
 before; the rate of interest on loans was from 12 to 18 per 
 cent., while formerly the rates were from 24 to 30 per cent, on 
 the security of jewels or landed property. In Malabar the 
 population had increased from 465,594 in 1802 to 1,165,489 in 
 1837. The valur? of exports of cotton goods, which were manu- 
 factured in Coimbatore, Salem, Madura and Tinnevelly districts 
 increased from Rs. 4,363 in 1804 to Rs.* 22,8 1,000 in 1837. 
 The price of labour had not increased with the increase of culti- 
 vation. This result was due to the increase of population and 
 cheapness>^V grain. The improved state of communica'tions — 
 roads and navigation — and the introduction, though. on a small
 
 33 
 
 scale, of pack bullocks and carts reduced the cost of carriage of 
 goods to 50 per cent, of what it was 20 or 30 years before. 
 The Collector remarks that cheap prices increased the consump- 
 tion of luxuries and ameliorated the condition of the lower 
 •orders. Taking the Presidency as a whole, however, there can 
 be no doubt that between 1830 and 1850, and more especially, 
 between 1835 and 1845, the condition of the agricultural classes 
 was wretched. For detailed particulars regarding the income 
 and the style of living of the different classes of ryots, refer- 
 ence may be made to the account of Mr. Bourdillon printed as 
 appendix B, section III, to this memorandum. 
 
 18. The principal measures adopted by Government during 
 this period for the development of the 
 to ameiiorTtrthe cond^ couutry and the amelioration of the condi- 
 tion of ryots and the ^|qj, ^f ^he agricultural classes were (1) the 
 
 state of communications. ■■ , . . • n .-, -i i' t \s> ^i. 
 
 abolition of the sayer duties and oi the 
 duties on interportal trade ; (2) the abolition of the tobacco 
 monopoly in South Canara and Malabar and of a large number 
 of petty and vexatious imposts ; (3) the relinquishment of 
 the right claimed by former Governments to tax improve- 
 ments to lands carried out solely at the expense of the land- 
 holders ; and (4) the construction of the Cauvery, Goddvari and 
 Kistna anicuts. Sir Charles Trevelyan's famous report on the 
 sayer or inland transit duties in 1834 contains a graphic 
 account of the frightful oppressions suffered by the people and 
 the demoralization caused by the levy of these duties. " If 
 we were to encourage swamps," says Sir Charles Trevelyan, 
 " or accumulate mountains between the different districts of 
 the country, we could not paralyse their industry so effectually 
 as by this scheme of finance." These duties were abolished 
 in the Madras Presidency in 1844 or ten years after the issue 
 of Sir Charles Trevelyan's report. In the report of the Public 
 Works Commission in 1852, we have an account of the state 
 of communications and of the measures taken to improve them. 
 At the time when most of the districts were acquired by the 
 British, says this report, " there was not one complete road 
 throughout the whole Presidency on which it would have been 
 possible to employ wheeled carriages ; their use was therefore 
 very limited, and the distant traffic of the country had nowhere 
 the advantage of them. Trucks were used by those who collect- 
 ed stone for the dams and the tank embankments, and in some 
 localities the harvest was brought in by carts upon wheels 
 either formed of solid pieces of timber or cut from a single 
 block of stone. These carts were drawn by several pairs of 
 bulloc*ks and carried nearly a ton, but they were never used for 
 distant jolimeys. Even the main streets of the largest towns 
 
 5
 
 ^4 
 
 were not practicable for wheels, and when the most wealthy 
 used light carriages, they rarely left the precincts of their 
 villages. The only ' made roads,' if they deserved the name, 
 were the mountain passes which in the later wars were opened 
 for the passage of artillery, but they had generally been des- 
 troyed by the monsoon rains before the country came into the 
 possession of the Company. The only proof of attention to 
 the great roads was to be seen in the fine avenues of trees, 
 which in some districts measured several hundred miles in 
 length ; but as the roadways beneath them had never been 
 properly formed or drained, and bridges had not been built, nor 
 care taken to keep the pathway practicable, they were roads no 
 longer ; but in most cases from being worn down by former 
 traffic and. washed by the rains of the monsoon, they had 
 become the drain of the country that they passed and were so 
 much more rugged than the land on either side that their only 
 use was as a guide to travellers who took a course as nearly 
 parallel as the ground permitted." Prior to 1823, the English 
 Government too had paid little or no attention to the improve- 
 ment of communications, and its efforts in that direction up to 
 the date of the report of the Public Works Commission had 
 been feeble and intermittent. The Commissioners state that 
 "in 1846 there were 3,110 miles of road called made road, but 
 a large part of even this small extent was totally unbridged 
 and totally unmade, consisting of tracks over a firm soil not 
 considered to need making for the light traffic then using 
 them ; " that, with the exception of the districts of Salem, 
 Madura, Tanjore and South Canara, the roads in the several 
 districts were practically impassable during the rainy season ; 
 and that in most parts '^ the tracks by which the carts travel 
 had never been made or improved, but are such as the carts are 
 able to strike out for themselves, winding their way as best 
 they can through the natural obstacles of the country, which 
 are in some parts greater, in others less ; in some parts rocks 
 and hills, in others swamps and muddy streams, in others rice 
 flats and irrigation channels." " Through, or round, or over 
 these various difficulties" add the Commissioners "the carts 
 find their way as best they can, changing their line from time to 
 time at particular points, as the old tracks there become 
 impracticable, and gradually deviating more and more from a 
 straight line. On such roads the carts can only carry one-third 
 of the load that they could on a good road and travel one-half 
 the distance in a day, and there are many days in a year in 
 which they cannot travel at all, and all perishable goods, sugar, 
 cotton ap.d (^ven grain are much exposed to damage." Ih illus- 
 tration of their remarks, the Commissioners give thti following
 
 35 
 
 particulars extracted from the accounts of a Madras merchant 
 regarding the great saving effected in the cost of carriage of 
 goods from Madras to Walla jahnugger — a great centre of trade 
 in those days— b}^ the gradual improvement of the road between 
 the two towns : — 
 
 In 1823 the hire of a cart from Wallajahnugger to Madras — a 
 
 distance of 70 miles — carrying 37| niaunds or 900 lb. 
 
 was Rs. 7-0-0 or Es. 17-6-9 per ton. 
 In 1835 the hire of a cart from Wallajahnug'jrer to Madras— a 
 
 distance of 70 miles — carrying 37| maunds or 900 lb. 
 
 was Us. 6-10-0 or Rs. 16-7-9 per ton. 
 In 1837 the hire of a cart from Wallajahnugger to Madras — a 
 
 distance of 70 miles — carrying 37 1 niaunds or 900 lb. 
 
 was Rs. 5-0-0 or Rs. 12-7-1 per ton. 
 In 1844 the hire of a cart from Wallajahnugger to Madras — a 
 
 distance of 70 miles — carrying 1,000 lb. was Rs. 4-8-0 
 
 or Rs. 10-1-3 per ton. 
 In 1847 the hire of a cart from Wallajahnugger to Madras — a 
 
 distance of 70 miles — carrying 1,000 lb. was Rs. 4-0-0 
 
 or Rs. 8-15-4 per ton. 
 In 1851 the hire of a cai't from Wallajahnugger to Madras — a 
 
 distance of 70 miles — carrying 1,600 lb. was Rs. 3-10-0 
 
 or Rs. 5-1-2 per ton. 
 
 The Commissioners, among whom were Mr. Bourdillon and 
 Sir Arthur Cotton, earnestly drew the attention of Government 
 to the extent to which the trade of the country was being 
 hampered by the want of communications, and urged that much 
 greater and more strenuous efforts should be made for their 
 improvement than had been done in the past. Another import- 
 ant question to which the Commissioners drew attention was 
 the system of corvee or impressment of labour for public works. 
 Their inquiries showed that there was no district in which 
 laboui- was not obtained more or less by compulsion. " Little 
 coercion is actually used," say the Commissioners, "but it is 
 kno^vn that it will be used if required, and indeed the work- 
 people themselves from long custom consider themselves under 
 a sort of obligation to work for Government on the established 
 terms, but where the remuneration is inadequate, they work 
 unwillingly and slowly." The Commissioners then recount the 
 various ways in which the labourers were cheated of the wages 
 due to them ; 1st, the rate allowed was too low, as in Madura 
 where it was fixed at one-third of the rate paid by private 
 persons ; 2ndly, the device of short measurement was adopted 
 and the work done was undervalued ; 3rdly, artificers, brick- 
 layers in particular, were often required to leave their towns, 
 where they could get constant work, to go to a distant part of 
 the taluk, to be separated from their friends and to submit to 
 privations ;'4thly, there was great delay in payment; and 5thly,
 
 36 
 
 mucli of the wages entered in the accounts as having been paid 
 was never really received by the labourers, who submitted to 
 various deductions, which had become customary, in favour of 
 officers employed on or about the work and in the disbursement 
 of the money. 
 
 Section lY .-^Narrative of the principal facts hearing on the 
 condition of the Agricultural classes from the middle of the 
 present century to the present time. 
 
 19. There was a famine in 1864, but it was restricted in its 
 
 effects to the district of Bellary and was not 
 
 period of agricultural of loug duration ; the chief losses were in 
 
 depression and the com- cattle, four-fifths of which are stated to have 
 
 mencement oi a period -,■ t ^^^^ -li ii • p 
 
 of prosperity and in- died. Ihc agricultaral depression from 
 ternai reforms. which the couutry was Suffering came to an 
 
 end about this time, and a period of great prosperity for the 
 agricultural classes commenced. For this there were several 
 causes. The discovery of gold mines in Australia and Cali- 
 fornia had increased the demand for Indian commodities in 
 European countries whose stocks of gold had been enlarged, 
 and this movement was accelerated by the Crimean war which 
 stimulated exports of jute and oil-seeds, and by the cotton 
 famine in England caused by the American war, which in- 
 creased the demand for Indian cotton enormously. The mer- 
 chandise exported from India, which amounted to only 13^ 
 millions sterling in 1840-41, rose to 68 millions in 1864-65. 
 The result was a great influx of silver into India which she was 
 able to obtain on advantageous terms in exchange for her com- 
 modities, as the cheap new gold had, to a considerable extent, 
 taken the place of silver in European countries and made the 
 latter metal available for export to this country. Further, 
 about this time loans on a large scale were raised in England 
 for the construction of public works. For railways alone, 90 
 millions were raised, and it is calculated that more than half 
 this sum was remitted to India for payment of wages to men 
 employed on the works. The influx of all this money enabled 
 India to replenish her insufficient currency and the prices of 
 Indian produce rose to nearly three times of what they were in 
 the years immediately preceding 1850. This period was also 
 remarkable for the great reforms carried out in the internal 
 administration of the country, which gave a great impetus to the 
 extension of cultivation and trade. The land assessments were 
 reduced wherever they were found to be heavy, notably in the 
 Bellary, North Arcot, South Arcot, Trichinopoly and E^irnool 
 Districts. The effects of these reductions under the stimulus of
 
 37 
 
 high prices were almost immediately felt on the acreage under 
 cultivation and the amount of revenue. In South Arcot seven 
 lakhs of rupees, amounting to nearly one-third of the revenue 
 on cultivated lands, and 8j lakhs on waste lands were remitted 
 in 1854. rhe area under cultivation the very next year rose 
 from 632,180 to 810,707 acres. The Collector reported in 
 1857 that " the demand for fresh land since the reduction of 
 assessment, and especially where the reduction was most liberal, 
 had been very great ; that the relief had given a decided 
 impetus to industry ; that the condition of the people had been 
 indisputably improved, as was evident from the substantial 
 houses they were building in every direction and by the in- 
 dependent manner in which they deported themselves ; and that 
 labour was in great demand and emigration to Bourbon had 
 ceased." The Collector of Kurnool in the same year stated 
 that since the reduction of assessment, cultivable lands had 
 become every year more difficult to obtain, that the revenue 
 came in readily, and that wells, topes of trees and indigo vats 
 were increasing in number. Similar reports in regard to the 
 favorable turn in the circumstances of the ryots were received 
 from other Collectors also. The Collector of Godavari reported 
 in 1859, " it is very gratifying to me to be able to bear testi- 
 mony to the rapid increase of prosperity among the people of 
 this district. This has been perhaps more especially apparent 
 during the last two years and is accounted for in various ways 
 — by the great demand for labour, by the great increase in the 
 rate of wages and in the prices of all commodities and in the 
 general appearance of the people. The high prices of all kinds 
 of agricultural produce during the last few years may have 
 aided in obtaining this result ; but that the main cause is 
 the work at Dowlaishweram no one can, I think, for a moment 
 doubt." In the Coimbatore district the relinquishment by Gov- 
 ernment of the right to tax improvements to land effected by 
 the ryots had led to a great extension of cultivation. Mr. E. B. 
 Thomas, who perhaps had done more to develop the resources 
 of this district than any other Collector, wrote in 1856, "a 
 great many new wells continue to be dug in punjah fields, and 
 some of the old deserted and exhausted wells are being opened, 
 and fences restored ; and garden crops are again appearing on 
 fields long waste, some 30 or 40 years. A great proof of the 
 practical value and policy of the garden remissions is exhibited 
 in lands (fit for new wells or with old wells in themj becoming 
 more saleable, and in discussions now arising on old dormant 
 claims to lands long since waste." Again in 1857 he said, 
 " the .district only wants rain. With a moderate assessment 
 and most, of the oppressive taxes relieved, the moturpha alone
 
 remainiug, improvements and investment of capital now encou- 
 raged, the district holds up, though this is the fourth successive 
 bad year of short rain. During the last 4 years, 18 inches of 
 rain in the 12 months have been the maximum; this year there 
 were only 16 inches and the land is parched, the crops scanty,' 
 wells nearly dry and cattle dying for want of grass and water 
 in large numbers ; but with good prices, great industry and 
 much energy among the cultivating classes, the rental, notwith- 
 standing all difficulties, keeps up and is collected' without 
 oppression or any balances to speak of." The testimony afford- 
 ed by the reports of the Collectors in other districts in regard to 
 the improvement in the condition of the agricultural classes 
 which had set in about this time is equally emphatic. The 
 ryots were granted complete freedom in the matter of taking 
 up lands or relinquishing them. Xumerous petty and vexatious 
 imposts, grouped under the general head of moturpha, were 
 abolished. The titles to inams or favorably assessed lands 
 were placed on a secure basis. The Settlement Department was 
 organized with the professed object of alleviating the heavy 
 burdens on land and of removing inequalities in the assess- 
 ments. The revenue remitted between the years 1 844 to J 860 
 in consequence of the above measures amounted to 68 lakhs ^*^ 
 of rupees. As a consequence of the recommendations of the 
 Public Works Commission already referred to, greater atten- 
 tion was paid to the maintenance of irrigation works and the 
 construction of roads, railways and canals. The system of im- 
 pressment of labour for Government works and the payment of 
 discretionary wages was abolished. A new Police force was 
 organized, which, whatever its shortcomings may be when 
 judged by a high standard of efficiency, is incomparably 
 superior to the unspeakably corrupt Police which it superseded ; 
 and the magistracy were relieved of police duties. In conse- 
 quence of the revelations of the Torture Commissioners, who 
 submitted their report in 1855, the employment of illegal pres- 
 sure and coercion,-^ whether in the collection of Government 
 revenue or detection of crime, was prohibited under stringent 
 penalties. The revenue and magisterial establishments were 
 revised, the taluk and village accounts were simplified, and a 
 scheme of examinations for qualifying for public service was 
 brought into force iu view to securing the services of a more 
 honest and capable class of officers than were available under 
 the old regime . All these reforms, it will be seen, were in the 
 direction of freeing the ryots from official dependence and 
 
 >* A detailed statement showing the revenue remitted is printed in the appendix A, 
 section IV. 
 
 '■ See extracts from the report given in the "appendix D, section IV. ••■
 
 .'J9 
 
 trammels, while at the same time affording them every facility 
 by the improvement of communications to take the produce to 
 the best markets. Owing to the operation of the economic 
 causes and the administrative improvements above referred to, 
 •both cultivation and trade increased enormously and the agri- 
 cultural and trading classes enjoyed great prosperity. The 
 ryots in the single district of Bellary made 1^ million sterling 
 by the sale of cotton in the 3 years of the American war. 
 There was a considerable improvement in the condition of non- 
 agricultural labourers also, as, owing to the construction of 
 several railways and other public works, the demand for labour 
 was great and continuous, and the rise in wages kept pace with 
 the rise in the price of food-grains, the old system of impress- 
 ment of labour at discretionary wages having, as already stated, 
 been swept away. The Board of Ee venue, Madras, instituted 
 careful inquiries in 1863 regarding the rates of wages prevailing 
 in the several districts in their relation to the prices of food- 
 grains. The results were as follows. Agricultural labourers 
 continued to be paid generally in kind and, therefore, the 
 increase in the price of food did not materially affect their con- 
 dition. Payment in moneij was very rare, and, where it ob- 
 tained, the rates of hire had more than doubled. Grain wages 
 also had in some instances risen, though not in the same ratio 
 as the payment in money. In consequence of the greater 
 demand for labour, the condition of the agricultural labourers 
 had not deteriorated, but on the contrary had generally im- 
 proved ; and this was no less the case with other classes of 
 labourers, whose wages had fully kept pace with the enhanced 
 price of food, being in some cases doubled and trebled. A 
 carpenter who would have received 4 annas before the rise of 
 prices would not take less than 6 or 8 annas, while the hii-e of 
 the common cooly had risen from 2 or 3 annas to 4 annas a day. 
 The Board considered that this state of things was a satisfactory 
 indication of the generally improved circumstances of the people. 
 The only class which suffered by the high prices was the lower 
 Gfovernment officials who, notwithstanding the recent enhance- 
 ment of their salaries, were in no case in a better, generally 
 in a considerably worse, position than before. Mr. Dalyell, 
 writing in 1866, estimated that the ryot was in twice as good a 
 position as he was in 1854. His remarks on the condition of 
 the general mass of the population have been extracted in the 
 appendix E, section IV. 
 
 20. There was a drought again in 1865 and 1866 all along 
 
 Tb reacti n ^^ ^^^^ Coast of the Presidency to the 
 
 north of Madras and extending as far inland 
 
 as the Mysore plateau, the area affected being about 43,000
 
 40 
 
 square miles and the population 6 millions. The effects of the 
 famine were most severely felt in the Ganjam district on account 
 of its comparatively isolated position ; in the Ceded districts, 
 however, in which the ryots had made large gains owing to 
 the high price of cotton which ruled during the years of the 
 American war, the famine was comparatively mild. The period 
 of high prices continued till about 1870 when there was a 
 sudden reaction. The loans for public works, which had caused 
 the influx of silver into India, ceased ; and remittances of large 
 sums to England for the payment of Home charges and the 
 interest on loans already contracted became necessary ; and on 
 account of these and other causes prices fell heavily. There 
 was considerable uneasiness caused also by the continual increase 
 of taxation, which, though lighter than it was before 1850, was 
 still severely felt, as the increase synchronized with a period of 
 falling prices. The fact was that the inflated prices of the 
 years of the cotton famine had led to extravagance and when 
 the reaction came, the ryots were unable to adapt themselves to 
 the altered conditions. In the Bombay Presidency especially, 
 the agricultural classes, finding that their lands had acquired 
 value, borrowed largely on them from Marwadi soukars, and 
 the repeal of the usury laws and the enforcement by the Civil 
 Courts of extortionate contracts without considering whether 
 the terms agreed to were equitable, had led to distress and 
 riots. In the Madi-as Presidency, however, the agricultural 
 classes who were not in the hands of soukars to the same 
 extent did not suffer similarly. But that they felt considerably 
 upset even in the comparatively prosperous district of Tanjore 
 will be evident from the following remarks of the Collector of 
 that district extracted from a report written by him in ]871. 
 *' So long as prices ruled at between double and treble the 
 commutation rate, and ^ro tanto reduced the Government de- 
 mand to between one-third and one-half of what it used to be, 
 the Tanjore mirasidar could well afford to pay his kists in 
 advance and at the same time indulge in the luxuries of 
 litigation as well as in a high style of living. A deficiency in 
 the outturn of his harvest was then a matter of comparative 
 indifference to him. Now, however, a marked decline in prices 
 has considerably altered this state of things. Not even the 
 wealthier landed proprietors escaped the process of distraint 
 under Act II of 1864 this year, and it is a fact that in Ap: :1 
 and May, the months of heavy kists, jewels of no small value 
 came into the money market for loans which were obtained on 
 12 and, in several instances, as much as *24 per cent, interest. 
 I, of course, do not mean to say that the Government demand 
 does not, on the whole, now leave a liberal margin ef profit to
 
 41 
 
 the mirasidars ; for, as market prices still average 70 per cent, 
 over the settlement commutation rate, they must be able to 
 gain so much more beyond their mirasi-waram share as origi- 
 nally fixed ; but this estimate of their profits holds good only 
 a& regards the well irrigated delta taluks. There are parts of 
 the district, especially those situated at the remote ends of 
 irrigation channels, where irrigation is from its nature pre- 
 carious, and the present system of conservancy under the direc- 
 tion of a highly centralized, but in point of numerical strength 
 utterly inadequate, professional agency is necessarily inefficient. 
 In such parts there can be no question that the recent high 
 prices of agricultural produce have alone enabled the land- 
 holders to punctually discharge the Government dues." The 
 decline in prices, however, benefited the landless classes whose 
 wages had risen during the years of high prices, but did not 
 decline when the prices fell. Inquiries^® were instituted at 
 this time by the Government of India regarding the pressure 
 of taxation. The Board of Kevenue reported " there can be no 
 doubt that there is a feeling of uneasiness and perplexity abroad 
 among the tax-payers which is strong enough to warrant grave 
 anxiety. This feeling is the result not so much of the nature or 
 weight of the taxes as of the rapid changes in the law which 
 have been taking place of late years. When a tax is new it is 
 bitterly felt, but as the people get more and more used to it, 
 their dissatisfaction wears away. The great bulk of the popula- 
 tion being engaged in agriculture, the cultivation statistics, 
 which are recorded with great minuteness, would show if the 
 burden of taxation were too great ; but there is no evidence that 
 this is the case. On the other hand, any considerable fall in 
 the prices of produce would make the burden unbearable, and 
 it may safely be said that the load cannot be increased or even 
 shifted without danger." The Madras Government expressed 
 a similar opinion. It remarked "with the exception of the 
 income-tax, in condemning which there is a very general con- 
 sensus of opinion, comparatively little soreness seems to be 
 felt in the country at any existing Imperial taxation. The 
 stamp duties perplex the people and probably would produce 
 more with less annoyance, were the schedules framed on some 
 more easily intelligible principle. The system irritates, but 
 the tax cannot be called burdensome on the masses. The rise 
 in prices of late years has indirectly tended to alleviate the 
 burdens on the land, whether for local or Imperial purposes, 
 while the concurrent improvement in wages has prevented the 
 increase in prices from telling hard on the lower classes. 
 1 ^- , 
 
 ^8 An abstract of the reports of Collectors and other officers in regard to the condition 
 of agricultural classes in 1872 is given in the appendix F, section IV.
 
 42 
 
 The salt-tax has probably in this Presidency been raised to the 
 highest point at which it will not injuriously affect consumption. 
 The greater facilities for carriage afforded by the extension 
 of railways have, doubtless, -tended and must continue to reduce 
 the tax to the inland consumer, but consumption is neverthe- 
 less not increasing proportionately with the increase of wealth 
 and population. The tax, however, being an indirect one, is 
 not likely to be the subject of complaint unless enhanced to a 
 prohibitive rate, but it is deserving of serious consideration 
 whether it is not now so high as to be a financial mistake in this 
 Presidency. The other Imperial taxes, except the income-tax, 
 do not seem to call for remark ; but as regards this latter tax, 
 the opinions collected are almost universally condemnatory of 
 it, not so much as being in its present form felt as a heavy 
 burden, but as being unequal in incidence and incapable of fair 
 adjustment, as calculated to demoralize those who assess and 
 those who pay, as aggravating the burden of municipal taxation, 
 as maintaining a feeling of distrust as to the financial policy of 
 
 Government The experiment of local taxation is 
 
 of much more recent introduction and the time has not yet 
 arrived for forming a just judgment as to its merits. It cannot 
 be doubted that the pressure of this taxation is more severely 
 felt, and it must be confessed that the house-tax, as a method 
 of providing funds for elementary education beyond the limits 
 of municipalities, is at present regarded with strong dislike by 
 the great majority of rate-payers. The application of the tax 
 up to the present time has been comparatively limited and its 
 extension will be gradual and cautious." 
 
 21. Before the country had time to recover from the shock 
 ine f 1876 78 causcd by the sudden fall in prices below 
 the inflated level they had attained in the 
 sixties, by the new and unfamiliar forms of taxation and by 
 the succession of laws issuing out of the legislature, it was 
 visited with the famine of 1876-78, the most terrible in point 
 of magnitude, intensity and duration, that was known for 
 upwards of a century. This calamity was the result of a 
 drought extending over three successive years and affecting a 
 tract of country 1^00,000 square miles in extent with a popu- 
 lation of 36 millions ; and no country which is purely agricultural 
 can, of course, expect to make head against a disaster on such 
 a scale. The area which suffered in the Madras Presidency 
 alone was 74,000 square miles containing a population of 16 
 millions. Notwithstanding the gigantic efforts made by the 
 Government, three-quarter million of persons on an average 
 having been relieved daily for a period of 22 months, and the 
 cost of the famine including revenue remitted amolinting to
 
 13 
 
 8 millions sterling, the loss of the population was nearly 4 
 millions. The progress of the agricultural classes in the affected 
 districts and of the landless classes in other parts of the Presi- 
 dency received a severe check, from the effects of which, 
 •however, they have since recovered with astonishing rapidity, 
 as is evident from the increase in population, acreage of culti- 
 vation and land revenue, and from the self-reliant manner in 
 which the Presidency has, during the last two years, borne 
 itself against the partial drought which has prevailed in several 
 districts. 
 
 Section V. — Statistics showing the improvement in the condition 
 of the people since 1850. 
 
 22. In the previous pages I have endeavoured to show in a 
 general manner, by the evidence of official reports and other 
 publications, what was the condition of the agricultural classes 
 both before and after the establishment of British power in this 
 Presidency, I will now more particularly examine what pro- 
 gress has been made during the last 40 years under the 
 following heads, viz., {a) population, {b) acreage of cultivation, 
 [c) prices of produce, [d) improvement in the processes of 
 production and in communications, (e) foreign and domestic 
 trade, (/) taxation, and {g) the standard of living of the differ- 
 ent classes of the population. I shall first mention what strike 
 me as note-worthy facts in connection with the heads above 
 enumerated, and then point out their bearing on the economic 
 condition of the people. Detailed statistics bearing on these 
 matters are given in appendix V. 
 
 23. A fairly correct census was taken in 1871 and the 
 
 increaee of population. P^PIjJf ^^^..^.^ ^^^ Presidency was found to 
 be ol^ millions. Owing to the famine of 
 1876-78 the population decreased in 1881 to 3 Of millions. 
 The loss of population was specially heavy in the districts of 
 Kurnool, Bellary and Anantapur, 8alem and Cuddapah, the 
 percentage of loss ranging between 17 and 26. The census 
 taken in 1891 shows that during the last decade the population 
 has increased by no less than 4f millions or 15*6 per cent. 
 The rates of increase in the districts which had suffered severely 
 from the last famine are specially remarkable. These high 
 rates are no doubt mainly due to the fact that the famine 
 killed off disproportionately large numbers of the juvenile and 
 aged population, leaving among the survivors a larger propor- 
 tion than usual of adults of the productive ages. The rapid 
 recorery of the population of a country after great calamities 
 seems ti) be a well attested fact and has often been noticed)
 
 44 
 
 Mr. Thorold Rogers, in his Six Centuries of Work and Wages, 
 observes : " We learn from contemporary accounts that rapid 
 growth of population followed on the destruction of the Black 
 Death (in England in the' 13th century). It is said that after 
 this event double and triple births were frequent, that marriageJj 
 were singularly fertile, and that in a short time the void made 
 by the pestilence was no longer visible. The repressive check 
 of a high standard of living was removed by the ease with 
 which the survivors could obtain that standard and accumulate 
 from a considerable margin beyond it. ... I make no 
 doubt that the population speedily righted itself, as it has done 
 on many other occasions, when a sudden or abnormal destruction 
 of human life has occurred in a people and the people has 
 a recuperative power." For a consideration of the question as 
 to what conclusions bearing on the economic condition of the 
 people, the increase in the population during the last decade 
 leads to, we must await the publication of the detailed results 
 of the census. It seems, however, to be pretty clear that the 
 normal rate of increase, viz., -8 per cent, per annum, given 
 in the census report of this Presidency for 1881, is much below 
 the mark. Mr. Hardy, in the chapter on the rate of increase 
 of population contributed by him to the report on the census 
 of British India taken in 1881, has calculated the rate of 
 increase for the whole of the Madras Presidency to be '6 per 
 cent, and for the tracts not afflicted with famine, 'S per cent. 
 Between 1856 and 1871, the population had increased at the 
 rate of 1*2 per cent. That this rate must have been higher 
 than the rate which had obtained previously when the country 
 suffered from severe agricultural depression is evident from the 
 fact that the proportion of the population under 20 years of age, 
 that is, born subsequent to 1851, to the total population cen- 
 sused in 1871, was found to be as high as 52| per cent., while, 
 according to the life table, the proportion should have been 
 something like 45 per cent. The increase of population during 
 the last decade has been at the rate of 1-44 per cent, and, during 
 the last 35 years, of -84 per cent, not merely in the non-famine 
 tracts but throughout the whole Presidency. So severe a 
 famine as that of 1876-78 is not likely to occur except once in 
 a century and it would probably be nearer the mark to assume 
 the normal increase of population under present conditions to 
 be not much less than 1 per cent., even making allowance for 
 mortality from droughts and scarcities, such as those that usually 
 occur. At this rate the population will double itself in 70 
 years. This high rate of increase, while showing that the 
 means of subsistence at the present day are more plentiful than 
 in times past^ shows at the same time that the pi-essure of
 
 45 
 
 population is likely to become more severe in the future than in 
 the past, especially when it is considered how universal is the 
 custom of early marriages and how difficult it is to introduce 
 salutary changes in this custom. Dr. Farr has pointed out that 
 undue increase or decrease of population in England is capable 
 of being remedied by regulating the number of marriages. He 
 says: "at present (in England) one-fifth of the women who 
 attain the age of 24-3 years never marry ; if one-half of the 
 women who attained that age never married, and if illegitimate 
 births did not increase, the births would ultimately not exceed 
 the deaths, and the population would remain stationary. But 
 the same end would be almost as effectually, and less harshly, 
 attained though four-fifths of the women who arrived at the 
 mean age continued to marry, if instead of beginning to marry 
 at 18, none married under 23, and the mean age of marriage 
 were raised to 30 years ; for the interval from generation to 
 generation would be thus extended, the childi'en to a marriage 
 diminished and the number of women at 30 would be reduced 
 by the loss of the younger lives " (see Farr's Vital Statistics). 
 He adds that under the pressure of circumstances, the popu- 
 lation in England, to a considerable extent, regulates itself in 
 the manner above pointed out to prevent any impairment of the 
 standard of living and frequently with a view to bring about a 
 rise in that standard. Such a process of adjustment is of course 
 much more difficult of application in India, where the marriage 
 customs are less flexible. In England the average age of 
 marriage for women is about 25 years, and only 18 per cent, of 
 women of ages between 15 and 25 are married and '2 per cent, 
 are widowed. Further, of the women who reach 25 years of 
 age, 20 per cent, never marry. In this Presidency nearly 80 
 per cent, of women between the ages of 15 and 25 are married 
 and 5 per cent, are widowed, and a considerable proportion of 
 the widows are debarred by the customs of the country frem 
 re-marrying. I have been informed that 50 or even 40 years 
 ago men married much later (generally ^^ after 30 years) than 
 
 '3 The Hindu Sastras recommend marriages between men of 32 years of age and girls 
 of 10 years, or men of 24 years and girls of 8. There is an inscription at Virinjipuram, 
 North Arcot district, dated during the reign of Veerapratapa Devaraja Maharajah of 
 Vijianagar, A.D. 1419, which shows that the practice of paying money to parents of 
 girls to induce them to give them in marriage was widely prevalent in former times. 
 The inscription states " in the reign of the illustrious Veerapratapa Devaraja Maharajah, 
 the great men of all branches of sacred studies of the Kingdom drew up in the presence of 
 Gopinatha of Arkapxishkarani, a document containing an agreement regarding the sacred 
 law. According to this, if the Brahmins of this kingdom of Padaividu, viz., Kannadigas, 
 Tamiras, Telungas, llalas, &c., of all Gotras, Butras and Sakhas, conclude a marriage, 
 they shall from this day forward do it by Kanyadansm (gift of girls). Those who do not 
 adopt Kanyadanam, i.e., both those who give away a girl after having received gold, 
 and thosfe who conclude a marriage after having given gold, shall be liable to punish- 
 ment by the King and shall be excluded from the community ot the Brahmins." The 
 inscription is 'interesting as showing in what manner legislation on social matters was 
 effected in the old days.
 
 46 
 
 they do now, while women were married as early as at present, 
 even among the higher classes ; the reason being poverty and the 
 difficulty of procuring sufficient money to pay to the parents 
 of girls for purchasing their consent to the marriage. This, 
 combined with the system of enforced widowhood, had the 
 effect of putting a check on the inordinate increase of popu- 
 lation by abridging the duration of married life. The great 
 disparity in the ages of the married couple which is said to 
 influence the sex of the offspring, possibly accounts also for the 
 scarcity of girls which, if current belief is to be credited, 
 existed in former times.^^ During later years, however, it 
 became quite the fashion amonp^ the well-to-do to marry their 
 sons while still very young, though in view of the prejudicial 
 effect which very early marriages have on the education of boys, 
 a slight change for the better has recently become perceptible.-^ 
 In India as in England, increase in the means of subsistence 
 leads to increase in the number of marriages among the lower 
 classes. In England, this tendency is, to some extent, coun- 
 teracted by the example of the middle classes who postpone 
 
 '^^ Sir Thomas Munro notices this fact. He Bays with reference to the census of the 
 Ceded districts taken when he was Collector of these districts : " It is a general opinion 
 among the inhabitants that the number of males is actually one-tenth greater than that of 
 females. I was at first inclined to believe that the difference might have arisen from the 
 seclusion of females, but it is not particularly great among those castes who follow this 
 practice, but extends to i-very casti- and every district. I examined the details of several 
 villages in different parts of the country, and thoughin one village the females were more 
 numerous than the malps, and in a few others equal in number to them, yet the average 
 result was the same as in whole districts. The coincidence of so many unconnected 
 accounts is certainly a strong argument in favor of the popular notion, of the males being 
 one-tenth more numerous than females." 
 
 21 In England the number of persons under 21 years of age who contract marriages 
 appears to have increased as shown below : — 
 
 Persons under 21 years 
 who marry per 1,000. 
 
 Men. 
 
 Women, 
 
 7-6 
 
 24-3 
 
 9-5 
 
 29-6 
 
 11-8 
 
 34-1 
 
 1850-62 
 
 1860-62 
 
 1870-72 
 
 The increase of early marriages is stated to be entirely due to the prosperous condition 
 of the lower classes, the middle classes, unlike those in India, preferring to postpone 
 marriage on account of the continual increase in the standard of living. Professor Mar- 
 shall remarks : "In the middle classes a man's income seldom reaches its maximum till he 
 is 40 or oO years old ; and the expense of bringing up his children is heavy and lasts for 
 many years. The artisan earns nearly as much at 21 as he ever does, unless he rises to a 
 responsible post, but ho does not earn much before he is 21 ; his children are likely to be a 
 considerable expense to him till about the ago of 15 ; unless thej- are sent to a factory 
 where they may pay their way at a very early age ; and lastly the labourer earns nearly 
 full wages at 18, while his children begin to pay their expenses very early. In conse- 
 quence, the average age of raar'-iage is highest among the middle classes, it is low among 
 the artisans and utill lower among the unskilled labourers." It will have been inferred 
 from my remarks that, looking at the question purely from the point of view of preventing 
 undue increase of population, the evils of compulsory early marriages of Hindu women 
 are mitigated by the system of enforced widowhood, and a relaxation of the restrictions on 
 widow marriage necessitates relaxation of the system of early marriages by postponing 
 marriages of girls for some years after the period at which by present opinion they are 
 recognized as marriageable. This, of course, is no objection to widow re- marriage reform 
 hut only shows why the progress of the reform is so slow. There are various adjustments 
 in other directions neceBsary before the reform is likely to be generally accepted
 
 47 
 
 marriages in order that the standard of living may not deteri- 
 orate. In India, on the contrary, with the classes correspond- 
 ing to middle-classes in England, early marriage of girls is a 
 religious obligation, and their example in this respect is the 
 reverse of beneficial. These considerations will bring home 
 to our mmds the futility of the expectation that great changes 
 can be produced in the condition of the masses, within the 
 periods of time which are insufficient for effecting a trans- 
 formation in deep-rooted national habits, and will enable us to 
 estimate rightly the value of the advance made under such 
 difficulties. 
 
 24. We have next to consider whether the increase in 
 agricultural production has kept pace with 
 ^increi^u in the a.;re- ^^^ increase of population. According to the 
 calculations already referred to, the popu- 
 lation in 1856 must have amounted to 26^ millions, and as 
 there was a famine in 1854, the population in 1852 may be 
 taken at about this figure. Between 1852 and 1891 the popu- 
 lation has increased from 26^- to 35^- millions or by 30 per 
 cent. Statistics of acreage of cultivation arc not available for 
 zemindaris and inam villages, and therefore it is not possible to 
 calculate the increase in production with any very great ac- 
 curacy. Nevertheless an analysis of the statistics of acreage 
 available in regard to ryotwar lands serves to show roughly 
 that the increase in the cultivated area, making allowance for 
 the increased productiveness of irrigated as compared with 
 unirrigated lands, is quite on a par with it if it does not exceed 
 the increase in population. Excluding South Canara and 
 Malabar, for which districts, owing to the absence of a survey, 
 statistics of acreage are not available, the ryotwar cultivation 
 was in 1852, 12-2 million acres, of which 9*5 million acres 
 were unirrigated, 2*3 million acres were irrigated from Govern- 
 ment sources of irrigation and "4 million of acres irrigated by 
 private sources, but were taxed at specially high rates on ac- 
 count of the valuable crops grown. These areas require a 
 double correction to be applied to them, first, because they 
 include portions of fields left waste which were charged for, 
 though not cultivated, and which are excluded from cultivation 
 statistics for later years, and secondly, because the areas given 
 in the old surveys have been found, by the recent surveys, to 
 be somewhat below the truth. On this account, on a rough 
 calculation, it is found that |- million of acres has to be added 
 to the acreage of 1852, to admit of its being compared with the 
 acreage of more recent years in districts which have been sur- 
 veyed. In 1890 the area of cultivated lands classed as dry, i.e., 
 not irrigated by Government sources of irrigation, was 13*64
 
 48 
 
 millions of acres, of which 12*64 millions were unirrigated and 
 1 million was irrigated by wells constructed by the ryots at 
 their own expense and 3 '44 millions of acres of lands irrigated 
 by Government sources. The increase in the area of cultiva- 
 tion is thus — (1) 25 per cent, in unirrigated lands, (2) 41 pei: 
 cent, in lands irrigated by Government sources of irrigation, 
 and (3) 138 per cent, in lands irrigated by private wells. 
 Nearly the whole of the increase under the second head amount- 
 ing to upwards of a million of acres is due to the extension of 
 cultivation in tracts commanded by the great anient systems — 
 Godavari, Kistna, Cauvery, Penner, Palar and Tdmbraparni — 
 which secure an almost unfailing supply of water, and every 
 acre of irrigated lands in these tracts produces, on an average, 
 not less than four times as much as they would do if they were 
 unirrigated. Moreover the increase of production due to the 
 great irrigation systems cannot be measured merely by the 
 increase in the acreage of cultivation, as the increase of produce, 
 consequent on an assured supply to lands which before the 
 anicuts were constructed were dependent on a precarious supply 
 of water, and on additional supply of water for a second crop to 
 lands cultivated formerly with a single crop, amounting in all 
 to about 1^ millions of acres, must be taken into account. 
 Similarly, the million acres irrigated by private wells produce 
 as much at least as 4 millions of acres of unirrigated lands. 
 Making allowance for these considerations and taking into 
 account the increase in the cultivated area under such articles 
 as cotton, indigo, ground-nut, coli'ee, sugarcane, tea and cin- 
 chona, it seems to me that the percentage of increase in produc- 
 tion cannot be less than 3 or 4 times the increase in population. 
 There are no means of making an exact calculation; all that 
 can be stated is that the increased production is very consider- 
 able. The area under cotton, which in 1852 was a little less 
 than a million of acres, has increased to more than If millions 
 of acres. The area under indigo has increased from about 
 200,000 acres to more than 500,000 acres or by 150 per cent. ; 
 ground-nut which in former years was cultivated to a small 
 extent to meet local demands has now become a very remunera- 
 tive commercial crop. It is chiefly cultivated in the South 
 Arcot district where the acreage under it has risen from about 
 6,700 acres in 1852 to 190,000 acres in 1889-90. The area 
 under sugarcane has risen from 38,400 to 70,000 acres. 
 Though the acreage under this crop may appear small, the 
 crop itself is very valuable, the value of the outturn per acre 
 being more than 20 times the outturn on dry lands. The area 
 under coffee and tea is 55,000 and 5,000 acres respectively. 
 These crops are of course extremely valuable.
 
 49 
 
 25. In this connection there are two prevalent notions which 
 deserve some notice. These are (1) that the 
 rainfeif "* df'crease of rainfall has scnsiblj diminished of late years, 
 and (2) that the "fertility of the soil, under 
 the improvident and non-restorative systems of native cultiva- 
 tion, has deteriorated." Both these notions have been shown, 
 by scientific men who have given close attention to the subject, 
 to be unfounded to a great extent. The prevalence of these 
 impressions is sufficiently accounted for by the habit of old 
 people in all countries of asserting that " in the days of their 
 youth the fields were greener and the sun warmer" (or as we 
 should say in India '• less intense "). We have statistics of the 
 rainfall for some stations for the last 80 years, and they do not 
 show that there has been any appreciable diminution in the 
 quantity of annual rainfall during this period. The complaint 
 of deficient rainfall is also, it must be remembered, not a new 
 one. The following passages extracted from Buchanan's 
 '' Journey " in 1800 show that people complained in much the 
 same way then, that they do now. " Tarkeri (Coimbatore 
 district). The people say that since the death of Hyder {i.e.^ 
 since 1782 or for 18 years) they have had one year with a 
 proper fall of rain. This year there has been abundance, but it 
 came too late by two months." " Dharapnram. Owing to the 
 want of rain and of stock the farmers are not able to cultivate 
 all that they rent, &c." " Pryapattana, G-rishmaritu (summer 
 season) contains the two months including the summer solstice. 
 It is said that formerly during this period the weather used to 
 be constantly clouded, with a regular unremitting drizzling 
 rain ; but for the last half a century such seasons have occurred 
 only once in 4 or 5 years ; and in the intervening ones, although 
 the cloudy weather continues, the constant rain has ceased, 
 and in its place heavy showers have come at intervals of 3 or 
 4 days, and these are succeeded by some thunder. Varsharitu 
 (rainy season). Formerly the rains used to be incessant and 
 heavy; of late years they have not been so copious oftener 
 than once in 4 or 5 years ; still they are almost always sufficient 
 to produce a good crop of grass and dry grains, and one crop 
 
 -- A third impression which is prevalent, though not confined to this country, is that 
 men in past times were giants in stature, had more robust health and lived longer than 
 their degenerate descendants do now. In England it was currently believed that the 
 knights of the middle ages were men of great stature, until it was shown that the armour 
 worn by them was too small to fit the present race of men in the upper classes of 
 society. In European countries, the average duration of life has increased owing to 
 diminution in infant mortality. It may be that the diminution of risks to life has had the 
 efEect of prolonging to adult age frail lives which under the old conditions would have had 
 no chance of surviving to that age, but ad the conditions favorable to the life of frail 
 infants ar? also conditions which diminish the risks to which fairly healthy persons are 
 subject, their general effect on the whole population cannot be other than beneficiaL 
 These remarks, »in so far as the present conditions differ from the past, are equally appli- 
 cable to this country. 
 
 7
 
 50 
 
 of rice. Pryapattana has therefore been termed the chosen 
 city of the natives of Karnata who suffer from scarcity of 
 rain." . . . '''■ Haltoray. Change of climate. The natives 
 say that formerly the rains were so copious that by means of 
 small tanks a great part of the country could be cultivated with 
 rice. These tanks were only sufficient to contain 8 or 10 days 
 water, and to supply the fields when such short intervals of fair 
 weather occurred. For 40 years past, however, a change having 
 taken place in the climate, no rice has been cultivated except 
 by means of large reservoirs." Buchanan adds " the truth of 
 this allegation is confirmed by the number of small tanks, the 
 ruins of which are now visible ; and by the plots of ground 
 levelled for rice which are near these tanks and which are now 
 quite waste." Possibly this was the result of the clearance of 
 forests which are stated to have some effect in regulating and 
 conserving local falls of rain but no influence in modifying the 
 general features of climate. Dr. Brandis, who might be ex- 
 pected to claim for forests all the merit they could justly lay 
 claim to, states : " There is no proof that forests modify the 
 climate to any great extent. The great features of climate 
 depend on cosmic causes, which are independent of local cir- 
 cumstances. Large extent of forests or large areas of irrigated 
 lands may, however, have some effect in increasing the rainfall 
 at certain seasons, and there is no doubt that in the vicinity 
 of dense forests and on irrigated lands, the air near the ground 
 is generally moister during the dry season and the dew 
 heavier." In the Goddvari district, where forests had been 
 extensively cleared in recent times, Mr. Henry Forbes, the Sub- 
 Collector, reported in 1848 that the forest had receded, but that 
 he thought it open to qaestion whether the diminution in the 
 streams which came from the hills was not in the time which 
 the stream took to exhaust itself, instead of in the body of 
 water passing down to its bed ; whether the rain was not said 
 to be less in quantity only because, falling on the hills and no 
 longer restrained by the trunks and roots of trees and allowed 
 no time to percolate through the soil and fissures of rocks and to 
 supply the reservoirs of springs, it poured down in torrents and 
 left the water-courses dry as soon as the rains had ceased to 
 fall. Moreover, the want of communications during the rainy 
 season, and the difficulty in crossing unbridged rivers, and the 
 liability of the country to inundations in past times were all 
 calculated to produce an exaggerated impression regarding the 
 quantity of rainfall. The accounts of famines in past centuries 
 given in the previous portion of this memorandum will show 
 that large portions of Southern India were liable to severe and 
 prolonged droughts quite as much in past times as at present.
 
 51 
 
 Mr. Graham writing in 1797, i.e.^ nearly a century ago, says 
 of Salem : "A person who had not experienced the contrary 
 would be led to suppose that the Baramahal possessed peculiar 
 advantages of situation, and that, lying between Mysore and 
 , the Carnatic, the soil would experience the best effects from a 
 participation of both monsoons. We know, however, that the 
 rains are extremely precarious, and that when they do fall, they 
 are either partial and scanty, or if plentiful, that the season 
 has passed ; and the only purpose they serve, as at present, 
 is from their violence to destroy half the tanks in the country. 
 How often has the farmer, deceived by a passing shower, 
 imprudently committed his seed to the ground, and how often 
 have his hopes of a return been blasted by a succeeding 
 drought, equally fatal to his crop as to his cattle ! How 
 frequently have we observed whole fields of grain apparently 
 vigorous, and rapidly advancing to perfection, destroyed in one 
 night by devouring insects, and the seemingly full-eared 
 cumbu, which one would pronounce in a few days fit for 
 reaping, exhibiting when rubbed between the hands nothing 
 but a useless powder, the consequence of its premature forma- 
 tion ! " I have examined the accounts given in the old reports ^^ 
 regarding the character of the agricultural season each year 
 from the beginning of the century, and I find that there is no 
 reason to believe either that the rainfall has diminished or that 
 unfavorable seasons are more frequent now than in the past. 
 There were then as prolonged and frequent droughts as now. 
 If the drought was of short duration and affected small portions 
 of country, the people managed to get on ; if, however, by a 
 combination of circumstances the drought continued over two 
 or three years and affected simultaneously large portions of the 
 country, the result was famine. The destruction of forests 
 appears, however, to have affected the supply of subsoil water 
 in the vicinity of hills and led to the drying up of streams fed 
 by springs. Dr. Brandis remarks that " in the Coimbatore 
 district the Noyel river, the main channel of which rises in 
 the Bolampatti valley, probably has less water now in the dry 
 season than it had 30 years ago. In the Palladam taluk the 
 old anicuts now remaining unused attest this." The import- 
 ance of forests in subserving the needs of agriculture cannot 
 of course be over-estimated, but there is, on the whole, no 
 
 -^ Surgeon- General Edward Balfour, after instituting careful enquiries in 1849, came 
 to the conclusion that ' ' it may be confidently stated that in India within the present 
 century, the rainfall has not diminished, nor has the quantity annually falling now 
 become more uncertain, but that man, partly ignorant and wholly reckless, has denuded 
 the soil o'iits trees and shrubs and bared the surface to the sun's rays, thus depriving the 
 country of its conservative agents and making the extremes of floods and droughts of 
 more frequent Occurrence and more severe."
 
 62 
 
 reason to suppose that their clearance has diminished the rain- 
 fall -* to such an extent as materially to a:ffect the yield of lands. 
 The disappearance of forests has undoubtedly improved the 
 public health, for many tracts of country, in the Madura district 
 for instance, now perfectly healthy were, 60 or 70 years ago, 
 notoriously feverish. 
 
 26. If then, there is no sufficient evidence in regard to any 
 .„ . J. • .■ diminution in the annual rainfall, there is still 
 
 Alleged deterioration i i i i 
 
 of the soil by over-crop- less cvideuce to show that there has been any 
 P"^^' sensible deterioration in the productive capa- 
 
 city of lands. The arguments based on a comparison of the rates 
 of average outturn per acre for the several grains given in the 
 Ayeen Akbari with the outturns assumed at the present day, will 
 not bear examination. According to the Ayeen Akbari tables, 
 the average outturn per acre in the middle of the 16th century 
 was for rice (apparently unhusked) 1,338 lb., for wheat 1,155 lb., 
 for cotton unpicked 670 lb. The averages in these tables have 
 been arrived at with reference to the rates for good, bad 
 and middling lands, but without any attempt being made to 
 find out under which of these classes the area predominated. 
 Moreover, with the immense increase in the acreage of culti- 
 vation especially of inferior soils, the average outturn must 
 necessarily decrease, while to establish a deterioration it must 
 be shown that lands under cultivation in former times yield 
 less now than they did before. In the case of wheat, especi- 
 ally, irrigation makes a great difference, the yield of irrigated 
 wheat being from 50 to 300 per cent, in excess of the out- 
 turn of unirrigated wheat. The dominions of the Emperor 
 Akbar did not extend to the south of the Vyndhia Mountains, 
 and the Ayeen Akbari rates cannot therefore be applied to 
 South India. If the rate for rice, 1,338 lb., given in these 
 tables refer to unhusked rice, the Madras settlement average 
 (1,621 lb.) is considerably higher. Cotton is frequently sown 
 as a mixed crop, and it is difficult to calculate its average 
 outturn. There is nothing, however, to show that its outturn 
 has diminished. In a recent report -^ on the cultivation of 
 
 2* Mr. Mackenzie in the Kistna District Manual remarks : "It would no doubt be 
 interesting to find any indication of change of climate, for it is supposed that in former 
 centuries, before the forests were cleared, there was a much heavier rainfall. Hiouen 
 Tsang's description of Dhanakaeheka with trees and gushing fountains supports this 
 idea, but we have seen that even in the 13th century there were quarrels about pasture 
 land, bitter enough to cause war, and we shall see in the following chapter that the 
 Muhammadan historians described the famines in A.D. 1423 and 1474 in language that 
 might have applied to the Guntiir famine of 1832. We cannot say therefore that there 
 ie historical evidence that the climate has become worse." 
 
 25 In a note to the report of the Agricultural Inspector it is stated that tke year to 
 which the report related was a good year and that therefore the estimate of average yield 
 of cotton should be accepted with some caution. <
 
 63 
 
 cotton in the Tinnevelly district submitted to the Madras 
 Agricultural Department by an Agricultural Inspector, it is 
 stated, " cotton soils of the best quality sell for Es. 1,000 
 a sanghili (3*64 acres) ; ordinary "soils for Rs. 500, while 
 inferior soils sell below Es. 200. In fertile soils and under 
 good treatment 1,000 lb. seed cotton per acre is no unusual 
 outturn ; an ordinary good yield of cotton may be taken to 
 vary from 750 lb. to 900 lb. of seed cotton, while 500 lb. 
 may be taken as a fair average of yield taking all soils 
 into consideration. These figures have been arrived at from 
 the statements of diflPerent classes of ryots and include the first 
 and second courses of pickings. It is assumed by dealers that 
 6 pedis (of about 328 lb. each) of seed cotton are required to 
 produce 500 lb. of lint, and therefore the average outturn of 
 an acre is 125 lb. of lint. In the United States, the average 
 outturn of cotton is about 567 lb. seed cotton or 189 lb. 
 lint per acre." In ^^ 1862 the average outturn of Tinnevelly 
 cotton was reported to be 300 lb. of seed cotton or 75 lb. 
 of lint. The Agricultural Inspector adds " that the outturn 
 in Tinnevelly is somewhat greater than formerly is admitted 
 by the ryots, and unless this were a well known fact they 
 would make no such admission. The explanation may be 
 found in the fact that the system of adding all kinds of earthy 
 matter to the manure heaps, by which the quantity is not 
 only largely increased but is also better decomposed, is only 
 a recent practice. Moreover all soils are now kept much 
 cleaner than before owing to closer and better tillage." The 
 allegation regarding the diminished outturn of lands is based 
 to a great extent upon the a jyriori reasoning that when the 
 ingredients forming plant food abstracted from the soil by 
 continuous cropping are not restored to it by artificial ma- 
 nuring, it must necessarily deteriorate. Eecent enquiries 
 made into agricultural practices in this country by scientific 
 agricultural experts have, however, resulted in showing that 
 the injurious effects attributed to native methods of agri- 
 culture are grossly exaggerated. Professor Wallace in his 
 India in 1887 emphatically denies that the fertility of the 
 
 ^^ Mr. Nicholson in his valuable " Preliminarj' Note" printed in the Report of the 
 Madras Ayricultural Committee remarks: "Forty jears ago the yield of cotton in 
 Bellary, Cuddapah, Coimbatore and Tinnevelly was 90, 50, 50 and 80 lb. per acre respec- 
 tively (Collector's reports in Wheeler's Hand-book) while the present average even on 
 good black cotton soil in those districts is not above 62^ lb. per acre." The statement 
 appended to Wheeler's Hand-book, however, shows that the outturn of clean cotton per 
 acre wan estimated at only 46, 50, 27 and 75 lb. respectively. The average outturn is 
 not less now. Sir Thomas Munro in 1806 estimated the average outturn in the Ceded 
 districts at less than 20 lb. per acre. Mr. Rundall, Commercial Eesident in the Ceded 
 districtSj'writing in 1819, states that the native produce of cotton is not more than 30 lb. 
 (clean cotton) per acre,
 
 54 
 
 soil is being exhausted by native practices. He quotes from 
 the report of Mr. Chisholm, the Settlement officer of Bilsapur, 
 the following remarks as to how the outturn is affected by 
 the continuous cropping of irrigated lands. '' When fresh soil 
 is broken up for rice cultivation, the ground can never be 
 got into proper order during the first year, and the yield is 
 less than in the old fields. In the second year the outturn 
 rises about one- eighth above that of the old fields and increases 
 gradually year by year until the fifth, when it reaches 50 per 
 cent, above the old fields. It then commences to decline, and 
 in about another five years has subsided to the level of the 
 old fields, and at that level it remains unchanged for ever. 
 Many fields for instance are believed to have been continu- 
 ously cultivated for 150 years" and more, and yet they are 
 in no way inferior to land reclaimed from the jungle but 15 
 years ago." Professor Wallace -^ goes on to remark that 5 lb. of 
 nitrogen is required for an acre, combined by electric action. 
 Thunderstorms being common during the south-west monsoon 
 months, India has a natural advantage over the British and 
 American wheat growers, whose supply of nitrogen is, in a 
 great measure, drawn from vegetable accamulations in a virgin 
 soil, which is, in consequence of a system of close cropping, be- 
 coming exhausted. More recently, Dr. Voelcker has expressed 
 an opinion to a similar effect. He states : '^ the possibility of 
 soil exhaustion going on (in India) can only be determined 
 by a careful study of what is removed from the land, and how 
 far this is replaced by the forces of nature and by the 
 artificial nourishment of manuring. I have mentioned the 
 deficiency of nitrogen which I observed in the case of several 
 Indian soils, but it is worthy of note too, how very large a 
 proportion of the crops annually grown, also of the trees and 
 shrubs and even of the weeds, are leguminous in character, and 
 
 -■' In an inscription {vide appendix I.-D.) recording a grant to a Jain temple at Nega- 
 patam by Kulottungachola (A.D- 1084) the produce of certain villages which can now be 
 identified is given. Comparing the present outturn with the rates given in the inscrip- 
 tion, it is found that on the whole the produce has increased and not diminished. There 
 is a popular impression in the Ciodavari district that the construction of anicuts and locks 
 has diminished the quantity of silt deposited on lands under irrigation. I have also 
 heard a story — apocryphal, no doubt, but still significant. It appears that an astute 
 Tan j ore Mirassidar paid a handsome bribe to the subordinate ofiicers of the Public 
 Works Department, to be allowed to breach the bank of a river when in full flood and 
 that though he got no produce from his lands the first year, he made a great profit 
 in subsequent years. This, of course, is a very dangerous way of manuring lands. The 
 inundations of the Nile fertilize the lands subject to them, but they often do as much 
 harm as good. 
 
 -^ The question is entirely a scientific one and is at present in an experimental stage. 
 Recent investigations, it is stated, with certain kinds of legimiinous plants, have shown 
 that they derive their nitrogen from the atmosphere and enrich the soil in whicl! they are 
 grown — Vide Journal of the Ro>ial AgricuUnral Societij for December 1891.
 
 55 
 
 may thus, if recent investigations be correct, possibly derive 
 their nitrogen from the atmosphere." Dr. Voelcker has given 
 high praise to the native methods of cultivation which he 
 considers are excellent, the problem . of improving native agri- 
 culture being a more difficult one than the problem of improving 
 English agriculture. The "garden" cultivation, /.<?., cultiva- 
 tion with the aid of wells, presents, in his opinion, " some of 
 the most splendid features of careful and high class cultiva- 
 tion that one can possibly see in any part of the world." 
 "Garden" cultivation has, as already remarked, greatly in- 
 creased in this Presidency. To take one district, Coimbatore. 
 The number of irrigation wells in good order, which were 
 22,000 in number in 180], increased to 28,719 in 1821, to 
 31,507 in 1852, to 58,385 in 1882, and to 60,283 in 1888-89.^^ 
 This means on about 15 per cent, of the area under cultivation, 
 the outturn was quadrupled or even quintupled. It was 
 owing to the existence of these wells that Coimbatore, though 
 one of the driest districts in the Presidency, suffered so little 
 from the famine of 1876-78 ; since the famine, cultivation by 
 means of wells has been extending in other districts also. 
 Dr. Brandis, who travelled through the several districts of the 
 Presidency in 1880, writes in his report on Forest manage- 
 ment, " I was much gratified to see in Bellary, Salem and 
 other districts the large number of new wells made since the 
 famine, and old wells deepened ; and it seemed to me that the 
 people fully recognize the value of wells for irrigation. Many 
 of the wells in the dry inland districts are large and beauti- 
 fully built, 30 feet square and 25 feet deep or more, and such 
 wells cost from Es. 500 to Es. 1,000." The Board's report '' on 
 the Eevenue Settlement of the Presidency for the year ending 
 30th June 1890 shows that 3,176 wells were excavated in 
 that year by Government ryots at a cost of Es. 2,63,677 ; and 
 of this number, three-fourths were in Salem, Coimbatore and 
 Chingleput. The same report shows that in seven districts, 
 from which alone returns had been received, the number of 
 wells in use for supplementing irrigation from Government 
 works was no less than 48,220, showing beyond doubt that the 
 policy recently adopted by Government of doing away with 
 the last remnant of restrictive regulations calculated to impede 
 the extension of well irrigation used for the purpose of supple- 
 
 '^ I examined the accotints of 10 villages in the Coimbatore taluk and found that the 
 number of wells had increased from 208 in 1860 to 315 in 1890. 
 
 ^" Recent official reports show that about 20,000 wells were excavated during the last 
 two years of drought by means of advances, amoimting to upwards of 30 lakhs of rupees 
 granted 1^ Government, and it was found on inspection by the Commissioner of Revenue 
 Settlement and Agriculture that the wells were in proper order. The 900 wells constructed 
 in the Ponnerj taluk have since been found to be mud wells estimated to last for from, 
 10 to 15 years, but excavated on hard soil.
 
 56 
 
 menting the deficiency of irrigation from Government works 
 and saving the Government as well as the ryots from loss, was 
 an eminently wise one. I am informed that large numbers of 
 wells have been excavated in the Chingleput, North Arcot, 
 Coimbatore, Madura and Tinnevellj/ districts during the last 
 two years with the aid of loans obtained under the very favorable 
 rules which have been framed for the purpose. In the single 
 taluk of Ponn^ri, which is liable more or less to drought, 
 it appears that no less than 900 wells have been excavated 
 during the last six months. This is a great boon to that taluk 
 which will henceforth, to a great extent, be protected from the 
 effects of partial droughts. The increase of produce under 
 the great irrigation systems has already been noticed. Of late 
 years considerable attention has been paid to the repair of 
 minor irrigation works also, and when the project for the 
 restoration of tanks throughout the Presidency at a cost of 26 
 lakhs of rupees, which is now under execution, is completed, 
 there is no doubt that the efficiency of the tanks and the 
 produce of the lands under them will be greatly increased. 
 As regards dry or unirrigated lands, it is true that there is 
 now less fallowing than formerly, though the practice of 
 leaving lands fallow prevails even now to a much greater 
 extent than is generally supposed. Thus out of 1 7 millions of 
 unirrigated lands held by Government ryots no less than 3 
 millions were left fallow in 1890. In the Godavari district 
 one-half, and in the Tinnevelly district one-third of the ryots' 
 holdings is left fallow annually.^^ There is, besides, a large area 
 of lands on the margin of cultivation which are taken up for 
 cultivation or relinquished by the ryots as it suits them. Culti- 
 vation under a system of fallows is of course poor and slovenly 
 cultivation, and with the increase of population and the 
 decrease in the area of waste, must necessarily be displaced by 
 cultivation under improved methods. My enquiries tend to 
 show that, under the stress of necessity and the additional 
 incentives to individual exertion promoted by the breakup of 
 the joint family system, greater care is now bestowed on culti- 
 vation of lands in the Tanjore district than in times past ; and 
 this is to some extent the case in other districts also. If any 
 marked results have not been obtained in this direction, it is 
 not because the ryots are so very unintelligent that they could 
 not be induced to adopt improved methods of cultivation, but 
 
 31 The Madras Board of Revenue have since the above was written instituted enquiries 
 as to the teason for such a large proportion of dry land being left fallow in the Godavari 
 and Tinnevelly districts. The results of the enquiries are not yet known. In Tinnevelly, 
 however, it is stated that land planted with palmy rah trees, though included 'in ryots' 
 holdings, is treated in the revenue accounts as ' waste,' that is, fallo^v. This will 
 however, account for the area of land left fallow only in a portion of the district.
 
 57 
 
 because the pressure of population has not enhanced the prices 
 of agricultural produce to such an extent as to make intensive 
 cultivation ^'' necessary or profitable. 
 
 . 27. Prices of commodities appear to have varied enormously 
 in different parts of the country in previ- 
 ous centuries owing to the difficulty of com- 
 munication and general insecurity ; they were comparatively 
 high in such districts as Malabar and South Canara which ex- 
 ported spices much in demand in Europe, receiving in return 
 gold and silver. In the districts in the interior, prices were 
 exceedingly low. We find, for instance, that the commutation 
 rate adopted by Hari Har Roy, the Yijianagar Sovereign, 
 for the settlement of land revenue in Canara in the middle 
 of the l4th century was 3 kattis for 1 ghetti pagoda, or 30 
 seers of 80 tolas of rice per rupee, while the present price is 15 
 seers per rupee. Buchanan states that in the 15th century the 
 price adopted for fixing the tax on cocoanut plantations was 6 
 pagodas or 24 rupees per 1,000 cocoanuts. The price is not 
 much higher at present. In the Eamnad country on the other 
 hand, it will be seen from the letter of the Jesuit Missionary 
 already quoted that in 1713, 8 markals of excellent husked 
 rice could be purchased for 1 fanam, and Mr. ]N^elson, the 
 compiler of the Madura District Maniml^ says that the rate is 
 equivalent to 96 lb. for 2jJ., or 512 seers of 80 tolas for 1 
 rupee, which is nearly one-twenty-third of the present price. 
 In the Chingleput district, it appears that in 1733 paddy was 
 sold at 25 pagodas per garce, which is about one-half of the 
 present price. Twenty years previously, however, it would 
 seem that this would have been reckoned a famine price. The 
 price of paddy in the last quarter of the last century in the 
 Ganjam district appears to have averaged %d. per cwt., or 168 
 seers of 80 tolas per rupee or about one-sixth of the present 
 
 32 The English example is very instructive. The average price of wheat in the 
 beginning of the 15th centary was only 6*. a quarter and in particular years it went 
 down as low as Is. Id. Between 1459 and 1560, the average price rose to 9s. Id. in 
 consequence mainly of the debasement of the currency. From 1561 to 1601 the average 
 price was 47s. ^d. In the 17th and 18th centuries prices were at the same level. In the 
 first half of the present century the average price was 60s. The greatest improvements 
 in agriculture were effected in the 17th and 18th centuries and the first half of the 19th 
 century. The price, however, has since under the stress of foreign competition gone 
 down as low as 30s. a quarter. The consequence is that high cultivation does not pay in 
 England. "The soil is weakly farmed, undermanned, and understocked, partly because 
 capital has dwindled, partly because farmers are compelled to realize something, even if 
 the sales are premature. Land is going back ; it is falling out of condition, if not out of 
 cultivation, and farmers are too poor, too weak and dispirited to restore or maintain it. 
 Its produce per acre is diminishing and the number of sheep has decreased by more than 
 two millions since 1875. High farming at present prices appears waste of money ; 
 agricultvfe cannot hold its own by intension against extension. The progress of centuries 
 seems thrown away ; the instrument becomes useless just when it is perfected and able 
 to double the "existing produce." — Prothero's Pioneers and Progress of English Farming, 
 
 8
 
 58 
 
 price. Comparatively high prices appear to have ruled at this 
 time in the Southern districts owing to the devastating wars 
 and famines from which they suffered. Since the beginning of 
 the century we have continuous records of the prices of food- 
 grains. The old prices are, strictly speaking, not comparable 
 with recent prices on account of the variety of the measures in 
 terms of which the prices were quoted in the old days, and the 
 uncertainty as to their contents, but they nevertheless give a 
 fairly correct general idea of the changes that have occurred. 
 In the appendix V(C) I have given tables showing the average 
 prices of the four principal food- grains for quinquennial 
 periods, leaving out of account famine years. From these 
 tables it will be seen that prices were at their lowest level for 
 some years before 1850, in consequence of the insufficiency of the 
 currency to meet the requirements of the country. Represent- 
 ing the avei-age prices of the food-grains in the five years 
 ending 1853 by 100, the average prices at the quinquennial 
 periods referred to will be indicated by the numbers shown in 
 the subjoined table : — 
 
 Grains. 
 
 Average for pive years ending 
 
 1813. 
 
 1823. 
 
 1832. 
 
 1853. 
 
 1865. 
 
 1874. 
 
 1888. 
 
 Paddy 
 Choi um 
 Kagi 
 Cumbu 
 
 All four grains . . 
 
 128 
 135 
 133 
 123 
 
 129 
 
 134 
 141 
 141 
 137 
 
 117 
 118 
 114 
 110 
 
 100 
 100 
 100 
 100 
 
 264 
 227 
 233 
 227 
 
 216 
 182 
 180 
 185 
 
 234 
 189 
 192 
 200 
 
 138 
 
 115 
 
 100 
 
 238 
 
 191 
 
 204 
 
 The above table clearly brings out the following conclusions. 
 Firsts from about 1828 to 1853, or for a period of nearly 25 
 years, the prices rapidly declined till they reached a level which 
 was oue-fourth^'^ less than the prices in the early years of the 
 century on which the land settlements were based. The result 
 was the acute agricultural depression already described and the 
 collapse of the settlements ; secondly^ prices rose rapidly after 
 1853 till they reached their culmination in the five years 
 ending 1865, when they were two-and-a-half times what they 
 were prior to 1853 and twice as high as in the early years of 
 
 3* As the figures given in the table represent averages of prices differing widely and 
 rel:iting to largo tracts of country, they must be taken as indicating the direction of the 
 movemt^nt of prices and not as a strict moafsute of their rise or fall. I have endeavoured 
 to obtain information regarding the course of prices from the accounts kept tby land- 
 holders and merchants. The results which are given in the appendix V.-C. (e) to (t) are 
 confirinatory of the inferences derivable from the table given here. '
 
 69 
 
 the century. The causes of this sudden rise have already been 
 mentioned ; they may be briefly recapitulated as follows. The 
 gold discoveries of America and Australia in 1848 led to a 
 large influx of gold into Europe, raising prices and creating a 
 demand for Indian productions. The substitution of gold for 
 silver in the currencies of the principal European countries 
 cheapened the latter metal and made it available for export to 
 India. The Crimean War at the same time led to the develop- 
 ment of the trade of India in jute and oil-seed^. The Indian 
 Mutiny necessitated large remittances in silver for expendi- 
 ture in India, and the construction of public works, especially 
 railways, had the same effect. The American War and the 
 consequent Cotton famine in England developed an enormous 
 trade in the somewhat hitherto despised Indian cotton. The 
 net imports into India of gold and silver which in the decade 
 ending 1849 was 21 millions sterling rose successively lo 70 
 millions in the decade ending 1859, and to 159 millions in the 
 decade ending 1869. TMrdly^ after 1870, prices fell by about 
 20 per cent, from the level they had attained in 1865, but were 
 nevertheless nearly twice as high as in 1853, and 50 per cent, 
 higher than in the earlier years of the century. The re-action 
 was brought about of course by the cessaticn of the causes 
 which had led to the influx into India of the precious metals 
 in the previous decade. The cotton famine in England ended 
 with the American war and the United States resumed their 
 position as the chief suppliers of cotton to England, and the 
 loans for the construction of public works in India ceased. 
 India, instead of receiving large sums of money, had to remit 
 large sums in payment of interest on the obligations already 
 contracted and to meet the increased charges incurred in 
 England as a consequence of the amalgamation of the Indian 
 Army with that in England. The net imports of gold and silver 
 amounted in the five years ending 1874 only to 15 and 18 
 millions against 29 and 50 millions respectively in the previous 
 five years. Fourthly^ leaving out of account the last two years 
 of drought, the average prices of the previous five years show 
 a slight increase as compared with those in the five years 
 ending 1874, i.e.^ the years immediately preceding the great 
 famine of 1876-78. 
 
 28. The great benefits conferred on the country by the 
 Effect of the improve- improvement of communications are too 
 ment of communications obvious to need detailed consideration. 
 *^° ^"^^^' Nevertheless a few facts gleaned from the 
 
 old rej)orts will here be given to enable us to realize what 
 immense advance there has been in this direction. Owing to
 
 60 
 
 the absence of roads, pack bullocks and coolies were the only 
 means of conveyance 60 or 70 years ago, and the cost of trans- 
 port of bulky articles for long distances was consequently 
 prohibitive. Buchanan, Writing in 1800, states that the wage 
 of a cooly in the Coimbatore district for carrying a man's load 
 10 miles was 2 gopali fanams or 5 annas 4 pies. The pacifica- 
 tion of the country led to a revival of trade and the increase 
 in the means of conveyance, and we accordingly find that the 
 rate was reduced to 2 annas 6 pies in 1804 and to 2 annas in 
 1839. The hire of a bullock carrying, say, 200 lb. 10 miles 
 was 5 annas in 1809 and 4 annas in 1839. The Collector 
 of Coimbatore writing in the latter year gives the following as 
 the cost of carriage for 100 miles of 1 ton of goods by men, 
 pack bullocks and carts — by coolies Es. 21-14-0; by pack 
 bullocks Es. 10-15-0; by bandies Es. 8-12-0. The figures 
 show, as might be expected, that carriage by coolies even in 
 those days was the most expensive of all modes of conveyance. 
 In Nellore the cost of carrying 1 putti of grain (742 Madras 
 measures) was 1 star pagoda and 5 fanams or Es, 4 for every 8 
 miles in 1805. Carts were not used in the district then or for 
 a long time afterwards. The Collector writing in 1847 mentions 
 as a novelty that he had for the first time used carts during his 
 tours. The cost of carriage of grain by means of pack bullocks 
 for a distance of 8 miles amounted to one-third of the value of 
 the grain which could not therefore be profitably transported to 
 places distant even 24 miles, unless the price at the place of 
 import was more than double that at the place of production. 
 Piece-goods manufactured at Nellorewere carried all the way 
 to Madras — a distance of 110 miles — on the heads of coolies. 
 Wdlajdh was a great emporium of trade and consequently the 
 cost of carriage to that station was lower than to other places. 
 Buchanan mentions that in 1800 the hire of a bullockload of 
 8 maunds or 200 lb. from Bangalore to Walajdh — a distance 
 of 145 miles — was Rs. 1-4-0 or Es. 1-8-0 according to the 
 nature of the goods carried, and these rates, allowing for the fall 
 in the purchasing power of the rupee, would be equivalent to 
 Es. 2 or Rs. 2-8-0 at the present day. In the case of grain the 
 cost of carriage often exceeded the value of the grain. The 
 result was violent fluctuations in one direction or the other in 
 prices according as the harvests were good or bad, and it 
 often happened that, while in one tract of country people were 
 in the midst of plenty, in an adjoining tract not far distant the 
 inhabitants were suffering the direst distress. When the 
 terrible famine of 1833 was raging in Guntiir, there was plenty 
 of grain in Malabar and South Canara where it was being sold
 
 01 
 
 at ordinary prices. The report of the Cotton Committee of 
 1848 mentions that when grain was selling at from 6s. to Ss. a 
 quarter at Kandeish, the price at Poena was from 646-. to 70s, 
 a quarter. Mr. Nicholson in his 'Manual of the Coimbatore 
 District has so well described the revolution in trade effected 
 by the improvement of communications in that district that his 
 remarks may be usefully quoted here. He states: "From 
 various reports it is known that in 1800 there were practically 
 no roads, but merely tracks ; there was not a cart in the dis- 
 trict, and what traffic existed was carried on by pack bullocks, 
 and by ponies and by basket boats on the Cauvery. The result 
 was not only that all imported commodities were dear, but 
 export trade was insignificant, and only in valuable articles 
 such as ghee, spices and so forth. Grain could not be moved, 
 so that prices depended on local scarcity or abundance, with 
 the result that substantial ryots were no worse off in bad years 
 than in good, for storage was a necessity, so that deficient crops 
 were supplemented from the surplus of good years, which then 
 fetched very high prices ; while in good years, especially if 
 consecutive, the markets were glutted, prices fell heavily, and 
 the ryots who were compelled to sell in order to meet the 
 Government and other demands were ruined by their own 
 superabundance. This reproach remained for manj^ years, so 
 that average prices between 1849-53 were lower than at any 
 previous time, while in times of famine, as in 1824 and 1887, 
 the difference in prices between famine and non-famine districts 
 was very serious. There are now (1887) in the district above 
 1,500 miles of metalled or gravelled roads in good order, be- 
 sides numerous cross roads and village lanes and 147 miles of 
 railway — Madras and South Indian. The result of this im- 
 provement is an immense internal traffic between the various 
 trade centres, such as weekly markets and towns, and a consider- 
 able import and export trade in which thousands of carts take 
 part with railways. Every village has several and every town 
 hundreds of carts which are extensively built in many places. 
 The value of the rail-borne traffic has not been ascertained, 
 but one or two facts may be noted — (1) that in the late famine 
 grain was poured by thousands of tons, while the price of rice 
 at the height of famine differed from that at Tanjorc, whence 
 it was supplied by only about 3 lb. per rupee; (2) that private 
 trade has been so stimulated by the railway that at the least 
 hint of scarcity in any other district or province grain is at 
 once moved, e.g.., in the early months of 1884, scarcity seemed 
 imminent in Northern India, and the Coimbatore Eailway 
 Stations were crammed with grain en route northwards ; (3) that
 
 62 
 
 trades such as the considerable tanning industry, coffee grow- 
 ing, &c., have been begotten by the railway, which carries 
 the produce cheaply to the coast; (4) that upon the making 
 of the railway, prices, to the great advantage of the ryot, 
 speedily doubled owing to export facilities ; with this great rise 
 in grain prices, land prices also rose, so that land, especially 
 near the railways, is now worth from 6 to 1 times its value 
 when the Madras Eailway was made ; (5) that the production 
 of valuable crops has been greatly stimulated, tobacco, which 
 has long been grown largely owing to the West Coast demand, 
 being excepted. It is to be noted that railways cannot yet 
 compete with carts for local traffic of say 30 miles' run, owing 
 to the necessary delay in getting trains and the low rates at which 
 ryots can afford to hire out their carts during the non-cultivation 
 season." Mr. Nicholson's observations which have reference to 
 the Coimbatore district are equally applicable to the other parts 
 of the Presidency. We have already seen that in the beginning 
 of the century roads were practically non-existent, and that in 
 1852 there were only 3,000 miles of roads hardly deserving the 
 name. There are now 25,000 miles of road in the Presidency 
 maintained by the Local Fund Boards in fair order, 2,000 miles 
 of railway, and 1,500 miles of canals. As pointed out by Mr. 
 Nicholson, the number of carts has enormously increased coin- 
 cidentally with increase in the mileage of railways. In the 
 Presidency as a whole there were only G'0,000 carts in 1850 ; 
 in 1877-78 there were 284,000 and there are now 436,000 or 
 nearly 5 times as many as in 1850. There was not a single 
 cart in South Canara in 1838 ; there are now 3,000 carts. In 
 Salem a tax on carts at the rate of 1 rupee was levied in 1836 
 and the number of carts in the district was ascertained to be 
 1,189. The number had increased to ^-^,296 in 1847 and the 
 number in use at present is 12,400.^* The hire of a cart which 
 was As. 14 per diem in 1838 was reduced to As. 8 in 1847, 
 while the load of a cart which was no more than 300 lb. at the 
 former had increased to 1,000 lb. at the latter date. The rate 
 in force in 1838 was thus 6 times the rate in 1847. In the 
 latter year the purchasing power of money was 2^ times at least 
 as high as it is now, and consequently As. 8 then would be 
 equivalent to Es. 1-4-0 now. The ordinary rate of hire for a 
 cart is 1 rupee per diem at present, and as a cart-load is about 
 1,000 lb. and the distance hauled every day 15 miles on an 
 
 ** The argument which is sotpetimos put forward that railways by superseding carts 
 have rendered the breeding of cattle for draught unnecessary and prejudicially affected 
 agriculture is, it will be seen from the above remarks, to a great extent unfounded.
 
 63 
 
 average, this rate is equivalent to about As. 2-5 per ton per mile, 
 while the cost of carriage by railway is about 8 pies per ton 
 per mile or a little more than one-fourth of the cost of carriage 
 by carts. The cost of carriage in boats on the canals is about 
 half of that on railways. Confining our attention to the main 
 railways and canals in this Presidency, the quantity of goods 
 and the number of passengers carried in 1888-89 were for the 
 Madras Eailway — passengers 8,003,205 over an average distance 
 of 39 1 miles and goods 1,088,774 tons over an average distance 
 of 105 miles; for the South Indian Railway — passengers 
 7,212,299 over an average distance of 35'12 miles and goods 
 1,349,433 tons over an average distance of 46-9 miles. In the 
 Oodavari, Kistna and Buckinsjham canals, the number of pas- 
 sengers carried was 480,000 and the ton-mileage of goods 36 
 millions. Leaving out of consideration the passenger trciffic, the 
 saving in the cost of carriage of goods alone caused by the sub- 
 stitution of carriage by railways and canals for conveyance by 
 carts may roughly be estimated at 27 millions of rupees every 
 year ; that is more than one-half the entire land revenue of the 
 Presidency. If the saving in time, and the diminislied risk of 
 loss^^ by robbery and of damage by exposure to the weather 
 be taken into account, the real saving in cost will be found to 
 be very much greater. Of course, under the old conditions it 
 would have been impossible to carry anything like the quantity 
 of goods now sent from place to place, or in other words, the 
 immense trade that now exists wnuld not have been possible 
 but for the extension of communications. It is a well known 
 fact that silver has fallen considerably in value since 1873, and, 
 under ordinary circumstances, we should have expected that the 
 prices of the principal commodities in India would have risen 
 in the same proportion. The cheapening of the cost of carriage 
 has, however, been so great as to neutralize almost wholly the 
 rise in prices, and the consequence is that the prices of food 
 grains during recent years are slightly, if at all, in excess of 
 the prices in 1873. 
 
 ^' Even as regards passengers, the risks in travelling by railways are incomparably 
 smaller than the risks of travelling by other conveyances, notwithstanding the terrible 
 railway accidents that occasionally occur. The number of passengers carried 1:)y the 
 Madras and South Indian Railways in 1889-90 was upwards of 16| millions, while the 
 number of persons killed was 32. In England the number of persons killed by railway 
 accidents during the years 1882 to 1885 was 1 in 60 millions of passengers. Mr. Henry 
 Ward in his article on "Locomotion and Transport, " in the jubilee volume entitled 
 The Reign of Queen Victoria, says: "From a comparison between the number of acci- 
 dents and the average train mileage, it may be deduced that a man in order to secure 
 his death must be.iin to travel as soon as be is bom and move da}' and night at the rate 
 of 20 miles an hour for 466 ypars. Even to make the risiss from railway travelling 
 equal to th(^be from general causes, he must pursue the practice for 9 years. Very few 
 have time even to get injured by the railway,"
 
 64 
 
 29. The statistics available as regards the sea-borne trade of 
 the several provinces included in this Pre- 
 Trade. Its dimen- sidcncj for the last ccntury are, as might 
 ^^^°^' be exjjected, fragmentary and imperfect. 
 
 In the Political Survey of the Northern Circars written by Mi*. 
 Grant and printed as appendix to the " Fifth Eeport," and 
 in Buchanan's Journey in 1800, we have scattered accounts 
 of both sea-borne and inland trade which was carried on ^^ on 
 a very small scale. According to Grant the value of the sea- 
 borne and inland trade of the Northern Circars amounted only 
 to 75 lakhs of rupees made up as follows : Exports by Euro- 
 peans of fine cloth manufactures 30 lakhs; coasting trade to 
 Madras chiefly in grain valued at 25 lakhs ; exports of coarser 
 cloths for the Eastern markets 10 lakhs ; and inland trade in 
 salt and piece-goods 10 lakhs. In 1889-90, in the single port 
 of Cocanada, the value of the sea-borne trade amounted to 200 
 lakhs. Fairly reliable statistics are available in regard to sea- 
 borne trade since the beginning of the centuryj and the rapid 
 
 36 We must be on our guard against accepting too literally the exaggerated accounts 
 given of the trade of India by ancient writers. The want of communications, as we have 
 already seen, made it impossible for any extensive trade being carried on in bulky articles 
 in general demand among the people. The chief articles of export were cotton muslins 
 of the finest texture and printed cloths, silk and spices, and latterly coarse cloths and 
 indigo. India received the value of the exports in gold and silver, as all necessaries of 
 life were produced in the country, the imports being small quantities of tin, lead, glass, 
 amber, steel for arms and frankincense from Arabia. In these circumstances, the trade 
 of India, in former times, though large perhaps as compared with the trade of other 
 countries, must have been of small proportions when j udged by modern standards, and 
 was carried on intermittentlj' ; for, other countries could not afford to be sending precious 
 metals continually to India, as the rise of prices in India under such circumstances 
 must have extinguished the trade, unless there was a large demand for the productions 
 of Europe in India. The articles in demand in Europe were such as only the richest 
 classes forming an insignificant portion of the population could purchase. For instance, 
 spices were much esteemed in Europe, the Indian trade being there known as the spice 
 trade. The price of such articles as pepper, cardamoms, &c., was as high as lis. a lb. in 
 the 14th cent urj'-, that is more than ten times the price in India, taking the nominal 
 values, while the purchasing power of money was between 8 and 12 times of what it is at 
 present. The difference between the prices of articles in India and in Europe was 
 reduced after the discovery of the Cape of Good Hope, but still it was very considerable. 
 For instance, the price of pepper which was 8s. a lb. was reduced to Is. ^d. a lb. In 
 1621 Mr. Munn, one of the Directors of the East India Company, estimated the quantity 
 of Indian articles imported and theii- prices at the places of export and import as 
 follows : — 
 
 
 
 Price in India 
 
 Price in England 
 
 
 
 per lb. 
 
 per lb. 
 
 250,000 lb. 
 
 of pepper . . 
 
 2irf. 
 
 Is. ^d. 
 
 150,000 ,, 
 
 of cloves 
 
 M. 
 
 Qs. Od. 
 
 150,000 ,, 
 
 of nutmegs 
 
 U. 
 
 2s. 6d. 
 
 50,000 ,, 
 
 of mace 
 
 Sd. 
 
 6s. Od. 
 
 200,000 ,, 
 
 of indigo . . 
 
 .. Is. 2d. 
 
 5s. Od. 
 
 107,140 ,, 
 
 of China rav silk 
 
 .. Is. Qd. 
 
 20s. Od. 
 
 Ordinary coarse cloths called "calicoes" which cost 7s. in India were sold in England 
 at 21s. apiece. In the first quarter of the century the value of articles exported from 
 India to Europe was estimated at about half a million sterling. The value of bullion 
 and merchandize imported by the East India Company into Bladras from 1708 to 1811, 
 a period of 104 years, was 20 millions sterling— bullion 12 millions and m-3rchandize 
 8 millions.
 
 65 
 
 progress made in this direction will be seen from the figures 
 given in the subjoined table : 
 
 Average of 10 years 
 
 Foreign 
 
 trade — 
 
 millions, Rx. 
 
 Coasting 
 
 trade — 
 
 millions, Rx. 
 
 Total 
 milliona, Kx. 
 
 
 ■"1810 
 
 1-72 
 
 2-41 
 
 4-13 
 
 
 1820 
 
 1-64 
 
 1-26 
 
 2-90 
 
 
 1830 
 
 1-98 
 
 1-52 
 
 3-50 
 
 
 1840 
 
 1-80 
 
 1-89 
 
 3-69 
 
 Ending 31st March . . < 
 
 1850 
 
 2- 42 
 
 2-24 
 
 4-66 
 
 
 1860 
 
 4-12 
 
 3-07 
 
 7-19 
 
 
 1870 
 
 9-17 
 
 5-39 
 
 14-56 
 
 
 1880 
 
 10-79 
 
 11-07 
 
 21-86 
 
 
 1890 
 
 14-54 
 
 10-41 
 
 24-95 
 
 For the year 1889-1890 
 
 18-23 
 
 11-37 
 
 29-60 
 
 Note. — The figures shown above under " coasting trade " represent the value of im- 
 ports from and exports to ports within the Presidency as well as ports in other parts of 
 India. As, however, in the former case the imports of one port are the exports of another, 
 the value of interportal trade within the Presidency is reckoned twice over. For instance, 
 in the U-37 millions, Rx. shown as the value of the coasting trade, 4-6 million, Rx, 
 represents the aggregate value of import and export trade as between ports within the 
 Presidency and half of it should be deducted from the total trade. 
 
 The table above given shows that, during the first half of the 
 century, there was not only no improvement in sea-borne trade, 
 but that it showed a tendency to decline. The East India 
 Company was deprived of its commercial privileges except as 
 regards the China trade in 1813, and the monopoly of the 
 China trade also was abolished in 1833. The internal trade of 
 the country, owing to the want of communications and the levy 
 of the oppressive transit duties, was very restricted, and the 
 Presidency itself was suffering from agricultural depression. 
 Since 1850, however, in consequence of the development of 
 communications, the abolition of transit duties and customs 
 duties on interportal trade and other causes which have been 
 already more than once referred to, the trade has advanced by 
 '' leaps and bounds." This will be still more manifest if we 
 take one port, Tuticorin for instance, and examine how its 
 trade has progressed. In the early years of the century the 
 trade of the whole district of Tinnevelly, both by sea and land, 
 was very small. There were only 16 ships (native craft) 
 engaged in sea traffic, and the trade was chiefly in jaggery 
 with Madras and in cloth with Colombo. The total exports by 
 sea and land amounted only to 14 lakhs of rupees, of which 
 about 4 lakhs represented the Company's investments. The 
 trade by land consisted of raw cotton valued at Ks. 80,000 
 and tobacco valued at Es. 75,000. The imports were insignifi- 
 cant, consisting of small quantities of pepper and occasionally 
 rice, The, progress of sea-borne trade since 1830 has been as 
 
 9
 
 66 
 
 follows : — 1830 — Exports 21 lakhs of rupees, imports 2 lakhs, 
 total 28 lakhs; 1850-51 — Exports 15 lakhs, imports 2 lakhs, 
 total 17 lakhs ; 1875-76 — Exports 75 lakhs, imports 51 lakhs, 
 total 126 lakhs ; 1889-90— Exports 200 lakhs and imports 32 
 lakhs, total 282 lakhs. In 1830 the chief articles of exports 
 were jaggery 1'16 lakhs ; cotton 8*48 lakhs ; cotton goods 10*18 
 lakhs and miscellaneous articles 1*38 lakhs. In 1889-90^' the 
 exports were jaggery 17 lakhs ; cotton 146 lakhs ; cotton goods 
 7 '46 lakhs and other articles 29*54 lakhs. The trade of the 
 other ports of the Presidency, with the exception of Masulipa- 
 tam, has likewise increased very considerably. 
 
 As regards inland trade, the distant traffic carried on by 
 means of railways between groups of districts into which the 
 Presidency is divided for purposes of registration of this traffic 
 amounted in 1889-90 to 31*85 millions of Indian maunds as 
 shown below : 
 
 Million 
 External trade — maunds. 
 
 Imports into Madras Presidency, excluding the chief 
 
 sea. port towns ... ... ... ... ... ... 2*60 
 
 Imports into Madras chief sea-port towns ... ... 118 
 
 378 
 
 Exports from Madras excluding the chief sea-port towns 3*07 
 
 Exports fi"om Madras sea-port towns ... ... ... 1*24 
 
 4-31 
 
 Internal trade — 
 
 Of Madras Presidency, excluding chief sea-port towns ... 10'86 
 Of Madras chief sea-port towns ... ... ... 12"90 
 
 2376 
 
 The traffic borne on the Godavari, Kistna and Buckingham 
 canals in 1889-90 was 21'44 millions of maunds valued at 
 6*41 crores of rupees and the ton mileage 36*03 millions. The 
 carriage alone of this merchandize at 4 pies per ton per mile 
 must have cost not less than 75 lakhs of rupees. The trade 
 with the French Settlements was valued at 2*15 crores of rupees. 
 
 Besides the above, there is an immense traffic carried on by 
 roads which is not registered. In 1888-89 an attempt was 
 made to register the traffic on some of the more important 
 roads in the Ganjam, South Canara, Cuddapah, North Arcot and 
 Madura districts. The registration was necessarily imperfect, 
 but the quantity of the registered traffic was found to be above 
 4 million maunds. The traffic registered represents of course 
 only a very small portion of the total road traffic of the 
 
 '^ It must bo noted that the season of 1889-90 in the Tinnevelly district was a good 
 one, and the exports of cotton and jaggery were somewhat larger than usual.
 
 67 
 
 country. Moreover, there is a large amount of petty local 
 traffic for distribution of merchandize in retail by means of 
 weekly fairs held in several places in the Presidency. We 
 have no means of estimating the value of traffic which is not 
 carried on the main lines of communication, but there can be 
 no doubt that its aggregate amount is very large. 
 
 30. Now, of the abovementioned sea-borne and inland 
 traffic, it will be quite within the mark to 
 trade° ^^'"^"*''^®^ ^* stato that niuc-tenths has sprung up since 
 1850 ; and this statement is applicable in a 
 greater degree to inland than to sea-borne traffic, as land car- 
 riage in former years owing to want of communication was 
 more expensive than sea carriage, and the land traffic was in 
 consequence restricted to articles of small bulk and high value. 
 It seems almost an act of supererogation to attempt to prove 
 that all this development of traffic has been of benefit to the 
 country, but as the increase of traffic, and especially foreign 
 traffic, is sometimes spoken of as if it were an evil and not a 
 benefit by persons who ought to know better, it may not be 
 considered altogether unnecessary to examine in what the 
 advantages of trade consist, and whether these advantages are 
 outweighed by any counterbalancing evils. The following 
 remarks of Professor Thorold Rogers explain succinctly what 
 are the advantages of trade in general and of foreign trade in 
 particular. He says : " The economical benefits of trade and 
 of that understanding between nations, which leads to the ex- 
 change of products, which protects merchants and merchandize 
 and gives temporarily to the foreigner, under more or less easy 
 conditions, opportunities of commerce, are obvious and trite. 
 The distribution of products to the greatest possible reciprocal 
 advantage is the first and most enduring stimulant to trade. 
 In all acts of exchange, the buyer has the strongest inducement 
 to get what he most needs, and in commerce, both parties buy 
 and both parties sell. Trade is again the most efficient instruc- 
 tor as to the natural benefits of soil, climate and material, and 
 it teaches this with the greatest rapidity and accuracy. The 
 greatest service which unimpeded trade does to a community 
 which has accepted it, is that it informs the people who desire 
 to exchange their products, what are the best kinds of material 
 on which to exercise their industry and develop that utility 
 which is the sole end of economical labour. Hence it supplies 
 the answer to the important problem — Has the industry in 
 which a country is engaged been determined on in the most 
 productive direction, does it produce the greatest possible 
 results 'with the least possible expenditure of force ? Hence it 
 acts as a stimulant for the discovery of labour — saving instru^
 
 68 
 
 tnents and of cost-saving processes, for any waste is labour 
 needlessly and unprofitably expended. It leads to the discovery 
 of natural resources, as in this country (England) coal, salt and 
 iron, the last two of which, before certaiD discoveries were 
 made, were imported into this country." Bearing these remarks 
 in mind, I will endeavour to show by an analysis of the 
 statistics of trade in the principal articles of export and import 
 to what extent the country has benefited by the increase of trade. 
 
 31. Cotton. — Among the articles of export, cotton is the 
 most important. In 1855-56 the exports 
 in the priSfpai^artides of cottou Were ouly 21 milHou lb. valucd at 
 of export. 25 lakhs of rupees, whereas now the exports 
 
 are 98 million lb, valued at 2 J crores of rupees ; and of this 
 increased value a larger share reaches the cultivator now than 
 it did in former years. For instance, in 1848, Dr. Forbes 
 Watson, Eeporter of the Economic Products of India, stated 
 that the cost of raising cotton in the Bombay Presidency was 
 \\d. per lb. ; the cost of carriage to Bombay was \\d. or 120 
 per cent, of the cost of the article at the place of production ; 
 and freight to England and connected charges were Id. 2i lb. ; 
 so that Indian cotton could not be sold in England at less than 
 id. a lb. The producer thus obtained for his article only about 
 31 per cent, of the price at which it was sold in England, the 
 remainder being absorbed in the cost of carriage and the profits 
 of middlemen. Now owing to the great cheapening of the cost 
 of carriage by land by the introduction of railways, and of sea 
 freight by improvements in the construction of steamers, the 
 producer in India secures something like 66 per cent.^^ of the 
 price realized in the English market. The development of the 
 export trade in cotton has also led to the establishment of 41 
 cotton presses in which the quantity of cotton pressed amounts 
 to 95| million lb. 
 
 ^ I append below the calculations given by an agricultural inspector in his report on 
 cotton cxiltivation in the Tinnevelly district : 
 
 R8. A. p. 
 Value of 1 candy (500 lb.) of lint at b^d. per lb. in the English market, 
 the exchange being at \s. 6d. per rupee . . . . . , 146 
 
 Deduct charges- 
 Pressing charge 
 
 Railway transit . . 
 
 Freight, commission, &c. 
 
 Firm's profit 
 
 Principal dealer's profit 
 
 Other charges borne by the sub-dealer 
 
 Cleaning charges . . . . . . 
 
 Sub-dealer's profit 
 
 Bagging and cartage 
 
 Balance, being the value to the ryot of 1 candy of clean cotton . . 
 
 2 
 
 
 
 
 
 1 
 
 2 
 
 
 
 13 
 
 14 
 
 
 
 4 
 
 
 
 
 
 1 
 
 
 
 
 
 2 
 
 
 
 
 
 10 
 
 
 
 
 
 3 
 
 
 
 
 
 1 
 
 
 
 
 
 38 
 
 
 
 
 
 108 
 
 
 

 
 69 
 
 Coffee. — The cultivation and trade in coffee, as is well 
 known, have been entirely created and developed within the 
 last 40 years. The value of the coffee exported in IS 89-90 
 amounted to IJ crores of rupees. Tt is estimated that the 
 amount expended on the maintenance of coffee plantations on 
 the Nilgiris alone is 20 lakhs of rupees, of which about one-third 
 is paid as wages to coolies and goes to support 14,000 laboimng 
 families from the plains. 23 large works for curing coffee 
 have been established, the outturn being estimated at 18^ 
 million lb. valued at nearly one crore of rupees. These works 
 afford employment to 7,500 hands. 
 
 Indigo is another article of export which has rapidly pro- 
 gressed within the last 40 years. In 1855-56 the exports were 
 2*9 million lb. valued at 43 lakhs of rupees. In 1889-90 the 
 quantity exported was 6*1 million lb. and the value 1*19 crores. 
 The Collector of Cuddapah, in which district indigo is ex- 
 tensively manufactured, writing in 1853, states that at the 
 commencement of the century " the manufacture of indigo was 
 in its rudest state, and the plant from which it is extracted 
 grown to a limited extent ; the cultivation of this plant was 
 formerly confined to the south-eastern portion of the district, 
 but now is gradually extending to the north and west. The 
 indigo itself was manufactured in earthen pots with great 
 labour and considerable expense, and was of inferior quality, 
 but in later years a more improved and better system of 
 manufacture has been introduced and the culture of the plant 
 greatly increased. The produce of this plant from its quality 
 is well known in the European markets, and its culture has 
 proved of the greatest benefit to the cultivators both rich and 
 poor, as a ready market is found for any quantity which may be 
 grown ; the poorer ryots receive advances without interest from 
 the wealthy firms who have established indigo manufactories, 
 and who, should their crop be insufficient to repay the advances 
 received, are seldom pressed for payment, unless it is ascertained 
 that they are endeavouring to defraud those from whom they 
 have received liberal advances, by disposing of their crop to 
 another party. This system to a considerable extent relieves 
 the poorer ryots from the exorbitant interest demanded by 
 village bakalls and shroffs, and thus, instead of being ruined by 
 usurious interest, they with a little care and management may 
 repay all their advances from their crops during the following 
 year, and obtain sufficient profit to satisfy the Sircar demand 
 and to maintain themselves and families." The manufacture 
 of indic^o has, however, since passed entirely into the hands of 
 natives, while the area under indigo and the production of the 
 dye have itfcreased. The reason why European agencies cannot
 
 70 
 
 cope with natives is explained by an agent of an European firm 
 to be that "the latter can do things cheaper. They manufac- 
 ture the produce of their own lands, work their own factories 
 and are assisted by relatives and friends who are paid little 
 or nothing, though, of course, they expect assistance in return. 
 At an European agency the weed is purchased, and the cost of 
 supervision and labour is very great. The weed, as is often 
 the case, during some seasons, yields little or no dye. Euro- 
 pean agencies suffer heavy losses, while natives do not feel the 
 loss so heavily." There are now six ^^ indigo factories and 6,393 
 indigo vats at work in the Presidency, the quantity of indigo 
 manufactured being estimated at 3*8 million lb. valued at 51 
 lakhs of rupees. Besides the persons employed in the cultiva- 
 tion of the plant, the manufacture of the dye gives employment 
 to 90,000 persons during the working season. Cultivation bein'g 
 perfectly voluntary, no difficulties or distui'bances similar to 
 those frequently experienced in Bengal, where indigo planters 
 who had secured leases of land on zemindari tenure endeavoured 
 to force the cultivation of indigo on ryots against their will, 
 have ever been experienced in this Presidency. The indigo 
 manufactured in Madras is supplanting the indigo of Bengal, 
 and it would, doubtless, soon take possession of the market 
 were it not for the fact that Madras indigo is extensively 
 adulterated by dealers. Indigo cultivation is very profitable 
 to the ryot not only on account of the dye, but also because 
 it enriches the soil and increases the yield of cereals, especially 
 rice, grown in rotation. 
 
 Seeds to the quantity of 613,000 cwts. valued at 16f lakhs 
 of rupees were exported in 1855-56. The exports in 1889-90 
 had increased to a little less than 2 million cwts. valued at 1*19 
 crores of rupees. The trade, in earth-nuts especially, has deve- 
 loped within the last few years and assumed large dimensions. 
 Forty years ago, earth-nuts were unknown to European 
 commerce. The cultivation of this crop has extended rapidly 
 in the South Arcot district where the acreage under this crop 
 has increased from about 6,700 acres to 190,000 acres. As 
 ground-nuts do riot require irrigation or much care in cultiva- 
 tion, and as they grow on dry, sandy soil, the trade in this 
 article has increased the profits and the value of inferior lands. 
 Besides the exports of earth-nuts from British ports, large 
 quantities, the produce chiefly of the South Arcot district, are 
 shipped from Pondicherry. In 1889 and 1890 the exports 
 were valued at 14 and 9^ million fi'ancs, the diminished exports 
 in the latter year being due to diminished production owing to 
 
 ^* There is reason to believe that the inimbor of indigo factories is much in excess of 
 the number oflftcially returned.
 
 71 
 
 adverse agricultural season. The value of exports of vegetable 
 oils which was 6:^ lakhs of rupees in 1855-56 increased in 
 1889-90 to 51^ lakhs of rupees, which is less than half the 
 value of exports of seeds. There are 16 lamp-oil manufactories 
 in 'the Godavari district turning out about 10 lakhs' worth of 
 oil, and there are a few mills in other districts doing a small 
 business. The large export of seeds, however, shows that there 
 is much scope for the establishment of additional oil-mills at 
 convenient centres, for, the substitution of exports of oils for 
 exports of seeds will cause a saving in the cost of carriage, 
 while providing employment to a large number of labourers in 
 this country and enabling the ryots to utilize the refuse of the 
 oil-mills as manure or as food for cattle. 
 
 Sugar is both an article of export and import in this 
 Presidency. In 1855-56 about 500,000 cwts. were exported, 
 the value being nearly 32 lakhs of rupees. In 1889-90 the 
 exports were nearly three times as much, — 1,350,000 cwts. 
 valued at 86 lakhs of rupees. The imports by sea in 1889-90 
 were valued at 5 J lakhs of rupees. About 155,000 maunds or 
 110,000 cwts. were also received by land from Mysore where 
 sugar, both refined and unrefined, is extcDsively manufactured. 
 There are 6 large sugar factories for the manufacture of refined 
 sugar, and these give employment to about 2,000 persons. The 
 art of manufacturing crystallized and refined sugar was in the 
 beginning of the century a mystery known to very few. 
 Buchanan states that sugar-candy made at Chickabalapura in 
 Mysore " is equal to the Chinese and the clayed sugar is very 
 white and fine. The art of making it is kept a secret. The 
 price at which they sell it precludes an extensive sale. Chinese 
 sugar-candy is sold at Seringapatam cheaper than the local 
 produce is sold here." The Chinese sugar- candy was sold at 
 Bangalore at £5-1-1, or say Es. 50 per cwt,, while the present 
 price is not more than Es. 20 per cwt., ^>., the present price 
 of the article, allowing for the fall in the purchasing power of 
 money in India, is a little more than one-fourth of what it was 
 in the beginning of the century. The production of unrefined 
 sugar has greatly increased, especially in the Godavari district. 
 The rail-borne inland traffic in this article in this Presidency 
 amounted to IJ million maunds. Iron mills are rapidly super- 
 seding the old inefficient wooden mills in extracting the juice of 
 canes. There is great scope for the cultivation of cane and 
 manufacture of sugar in this Presidency in the lands commanded 
 by the great irrigation systems. Two years ago Messrs. Travers 
 and Sons of London pointed out that under proper arrangements 
 India ought to be able to produce all the refined sugar it wants, 
 instead of estporting both crude sugar and labour to Mauritius,
 
 72 
 
 and receiving back refined sugar. The explanation for this is 
 to be found in the fact that the price of refined sugar has 
 enormously fallen, owing to the competition of bounty-fed beet 
 sugar in France and Germauy and the difficulty of getting cane 
 grown near factories on a sufficiently large scale to make the 
 manufacture of sugar by improved processes profitable. The 
 latter difficulty is not, however, very formidable, and if a 
 satisfactory solution of the sugar bounty question in Europe is 
 arrived at, a considerable extension of the sugar industry in 
 this Presidency might be hoped for.*^ 
 
 Spices. — The trade in spices is an ancient one in this Presi- 
 dency. The exports were in 1855-56 of the value of 24 lakhs 
 of rupees and in 1889-90, 71 lakhs. 
 
 Food-grains. — The net exports of food -grains have not 
 increased, but on the contrary show a slight decline, owing to 
 competition of cheap rice from Burma and Bengal. 
 
 Piece-goods. — The exports of cotton piece-goods were in 
 1855-56, 1,894,504 pieces and 223,140 yards valued at 211 
 lakhs of rupees. In 1889-90, 1,100,165 pieces and 13,638,070 
 yards valued at 45 lakhs of rupees were exported. The cloths 
 were partly the products of hand looms and cotton mills estab- 
 lished in the country and partly foreign manufactures dyed in 
 the country and re-exported. There were at the end of 1889-90 
 8 cotton mills worked by steam. The number of persons 
 employed was 6,000, and the quantity of cotton worked up 
 
 ^f* A recent enquiry instituted by the Government of India showed that the difficulties 
 in the way of the introduction of improved methods of manufacture of sugar on an exten- 
 sive scale were the following : 
 
 ' ' (a) The cultivation of sugar-cane is limited by the supply not only of water for 
 irrigation, but also of manure, {b) As cultivation in India is confined to small farms or 
 holdings, each cultivator who is alale to grow the crop at all can only find manure enough 
 for a small area, generally less than half an acre, of sugar-cane. The plots of sugar-cane 
 are, therefore, greatly scattered even in a canal irrigated tract, [c) A central factory 
 has accordingly to bring in its supplies of cane in small quantities over varying distances, 
 in many cases the distances being great, {d) The carriage of canes over a long distance, 
 even in a climate like that of the Mauritius, is detrimental to the juice for purposes of 
 sugar-makmg. It is much more so in India, where the canes ripen at the season when the 
 atmosphere is driest and suffer, therefore, the maximum of injury, (e) The Mauritius 
 system of growing large canes at intervals is not adapted to the greater part of India, 
 where in order to prevent the ingress of dry air into the fields, small canes have to be 
 grown in close contact. (/) The amount of cane which can be grown, limited as it is by 
 the supply of water and manure, barely suffices for the wants of the Indian population. 
 It seems to be at present as profitable "to produce coarse sugar for their use as highly 
 refined sugar for export. There is, therefore, no sufficient inducement to capital to 
 embark on the more difficult and expensive system." 
 
 ]\Ir. Tucker in his report on the inland trade of India, for 1888-89, adds—" a further 
 obstacle to sugar refining in India exists in the high differential rate, which the conditions 
 of the Indian excise system require to be placed on spirits made on the European method 
 as compared with that levied on spirits manufactured by the indigenous process. The 
 sugar refiner in India is thus placed at a disadvantage in respect to the utilization of his 
 molasses in the form of spirits." In this Presidency, however, the so-called country 
 liquor is mostly made from molasses according to European methods of distJiUation, and 
 the other difficulties in regard to the cultivation of sugar-cane wiU not be difficult to 
 overcome if the bounty system in European countries be abolished.
 
 73 
 
 amounted to 20| million lb. Additional mills have since been 
 established. 
 
 Of less important articles of export, the value of tobacco 
 has risen from a little over 2 lakhs iii 1855-56 to 17 lakhs in 
 1889-90, and tea from \ a lakh to 5 lakhs. Cinchona is a 
 plant very recently introduced, and the exports of this drug 
 from this Presidency amounted to 12 lakhs of rupees. In 
 connection with the manufacture of tobacco, there are 32 
 factories in which cigars to the value of upwards of 7 lakhs of 
 rupees are manafactured. 
 
 32. The value of the sea-borne imports of the Presidency 
 amounted in 1889-90 to 9|^ crores of rupees, 
 
 The prou-ress of trade pi-i^it i„ \, ^£ 
 
 in imported articles and of which 4-15 crorcs or nearly one-half 
 the low cost at which consisted of cottou manufactures. Cotton 
 
 they are now obtained. . -. -, . i p i . r» n 
 
 piece-goods have increased irom about 28 
 lakhs in 1855-56 to 2-68 crores in 1889-90 ; cotton twist from 
 23 lakhs to 1'47 crores ; metals from 11 to 58 lakhs ; liquors from 
 13 to 21 lakhs. The other articles imported in 1889-90 were 
 railway materials 40 lakhs; timber and wood 21 lakhs; hard- 
 ware and' cutlery 20 lakhs ; coal, machinery and mill work 34 
 lakhs ; salt 28 lakhs ; apparel 2S lakhs ; kerosine and other oils 
 20 lakhs ; spices and areca-nuts 19 lakhs ; gunny bags 17 lakhs ; 
 stationery ! 4 lakhs ; provisions 1 4 lakhs ; drugs and medicines 
 9 lakhs ; woollen goods 8 lakhs ; sugar 5 lakhs ; raw silk 12 
 lakhs ; books 3 lakhs ; other minor commodities 9 lakhs. Some 
 of the articles, such as machinery and mill-work, could not of 
 course have been procured except by means of foreign trade. 
 In the case of other articles, the cost, that is, not merely 
 nominal prices but real values, allowing for change in the pur- 
 chasing power of money, has been enormously reduced. For 
 instance, the money price of cotton goods, it will be seen from 
 the statement given in the appendix, Y.-D. (e), is now about 
 two-thirds of the price in 1850, and as the purchasing power of 
 money estimated in terms of food-gj-ains is now only two-fifth of 
 what it was in 1850, it is clear that a ryot on the coast has now 
 to give in exchange for cloth a little more than one-fourth of the 
 quantity of grain he gave in 1850 and a ryot in the interior 
 even less. The same proportion holds good as regards the 
 exchangeable value of metals and other imported goods more 
 or less. The fall in the value of imported goods has been 
 specially great since 1873, owing to economies effected (1) in 
 the cost of production in European countries by the adoption 
 of labour-saving processes in the manufacture of commodities, 
 and (2) jn the cost of carriage by the opening of the Suez 
 f Canal and improvements in the construction of steamers. There 
 are, says Sir Lyon Playfair in his book entitled Subject of 
 
 10
 
 74 
 
 Social Welfare^ in explanation of the causes which have brought 
 about a temporary depression of particular trades in England, 
 two immediate causes of depression in all machine-using coun- 
 tries. The first is the changes produced by science in the 
 economy of distribution. By the opening of the Suez Canatl, 
 the old route round the Cape of Good Hope has been superseded 
 by the shorter and more economical route through the Suez 
 Canal. The time occupied during the voyage — from six to 
 eight months for sailing vessels — has been shortened to thirty 
 days. By the substitution of iron steamers carrying the com- 
 merce of the Western Hemisphere through the Suez Canal, a 
 tonnage estimated at two millions was practically destroyed, and 
 vast arrangements in commercial industry were displaced. In 
 the old system of long voyages, large storehouses of goods had 
 to be provided for the shipping interest, not only in foreign 
 ports, but also in England, which became the centre of bank- 
 ing, ware-housing and exchange. All this was altered by 
 electricity. The discoveries and appliances in the science of 
 electricity — the telegraph, telephone and electric lighting — 
 have created new labour, but have at the same time displaced 
 a great amount of other labour. In the United Kingdom 
 upwards of 42,000 persons are employed on work depending on 
 electricity, while probably throughout the world more than 
 300,000 persons win their subsistence by the recent applications 
 of this science. The amount of labour which it has displaced 
 cannot be calculated. The whole method of effecting exchanges 
 has been altered, because communication with other countries 
 is now immediate ; the consumer and the producer in opposite 
 parts of the globe making their bargains in a single hour 
 without the intervention of mercantile agencies or the large 
 ware-house system, which former methods of commerce required. 
 The Suez Canal and improved telegraphy made great demands 
 for quick and economical distribution of material. Numerous 
 steamers were built between 1870 — 73 for this purpose, but so 
 rapid were the improvements that they were all displaced two 
 years afterwards (1875-76) and sold at half their cost. Iron 
 has been largely substituted by steel, both on land and at sea, 
 Bessemer's invention having destroyed wealth; but like the 
 phoenix new wealth has arisen from its ashes. A ship which 
 in 1883 cost £24,000 can now be built for £14,000. The 
 economy of fuel has been very great. Shortly before the 
 opening of the Suez Canal, the best steamers crossing the 
 Atlantic expended 200 tons of coal to carry an amount of cargo 
 which can now be driven across for 35 tons. The application of 
 compound engines to steamers has also produced an enormous 
 economy of fuel. In 1850, the fine steamer the Persia carried
 
 75 
 
 over cargo at an expenditure of 14,500 lb. of coal to a ton; a 
 modern steamer does the same work for 300 or 400 lb. The 
 effect of this economy on haulage by land and transit by sea is 
 immense. In an experiment lately inade on the London and 
 North- Western Railway, a compound locomotive dragged a ton 
 of goods for 1 mile by the combustion of 2 ounces of coal. In 
 ocean navigation there is a much larger economy. A cube of 
 coal which passes through a ring of the size ()f a shilling will 
 drive a ton of cargo two miles in our most improved steamers. 
 The cost of transit of a ton of wheat from Calcutta to England 
 was 71^. ^d. in 1881 and 275. in 1885. The haulage of a 
 thousand miles from Chicago to New York brings a whole 
 year's supply of food for one man at a cost of a single day's 
 wage. A ton is hauled for less than a farthing per mile. The 
 fall in the prices of ocean transit from New York to Liverpool 
 has been as follows : 
 
 
 
 
 1880. 
 
 1886. 
 
 Grain per bushel 
 
 ... 
 
 f... 
 
 Hd. 
 
 Id. 
 
 Flour per ton 
 
 • • • 
 
 
 25s. 
 
 7.S. 6d. 
 
 Cheese 
 
 
 
 50s. 
 
 15s. 
 
 Cotton per lb. ... 
 
 
 
 %d. 
 
 ^\d. 
 
 Bacon and lard per 
 
 ton 
 
 ... 
 
 45s. 
 
 7s. 6d. 
 
 India, it is needless to say, has immensely benefited by 
 these improvements. In 1 850, freight from Calcutta to Eng- 
 land was sometimes as high as £5 a ton for wheat. In 1879 
 it had fallen to 22s. Qd. for transport via the Cape and to 
 £1-10-0 via the Suez Canal. In 1849 Colonel Sykes calculated 
 that a ton of wheat costing 61^. in India could not be landed 
 in England at a less cost than 16 Is. or in other words, freight 
 was 164 per cent, of the first cost of wheat at the Indian 
 port. Mr. T. Comber, one of the witnesses examined by the 
 English Royal Commission on the value of the precious metals, 
 put in a statement which showed that the cost of carriage of 
 wheat from Jubbulpore to Bombay was reduced from 9^. 8c?. 
 per quarter in 1873 to 4^. lid. in 1887 by the development of 
 railways in India, and the sea freight from Bombay to the 
 United Kingdom was reduced from ISs. to is. 6^^., the total 
 saving in the cost of carriage from India to England being 
 13^. Sd. From the evidence of Mr, Waterfield, the Financial 
 Secretary of the India Office, it appears that the saving in the 
 cost of carriage of wheat exported from C^alcutta to England 
 was about the same. He stated that in June 1881 and June 
 1886 the prices of Cawnpore wheat at Calcutta were at the 
 same level, viz., 2*9 rupees per maund of 80 lb. The cost 
 of Indian wheat in London in 1881 was 425. a quarter and 3l5. 
 M. in 1886, showing a difference of 10s. Qd. or 25 per cent.
 
 76 
 
 In 1881 the rate of freight from India to London was 6O5. 
 per ton, and 30^. in 1886, a difference of 30^. per ton or 6s. 6d 
 per quarter. Between 1879 and 1886 the charge for the 
 transport of grain by railway from Cawnpore to Calcutta 
 was reduced to the extent of about 25, a quarter which was 
 equivalent to a saving to the producer in the cost of production 
 of the same amount. There was a further reduction of about 
 Qd. a quarter in the price of gunny bags, the total saving 
 to the producer being thus 95. The freights for rice exported 
 from Rangoon to England have been reduced from 725. 6^. per 
 ton in 1873 to 325. Qd. per ton in 1891 ; and coal freights from 
 England to Bombay from 2Z5. Gd. to 125. Qd. per ton in the 
 case of steamers and from 245. to I65. in the case of sailing 
 vessels. The Indian producer has thus doubly benefited ; Jirst 
 by the higher value realised by him for his productions ; and 
 secondly, by the lower value paid by him for the imported com- 
 modities which he obtains a^ar less coat measured not merely by 
 money values *^ but by actlji sacrifice of time and labour than 
 would have been incurred if he had produced them himself. 
 
 33. It has, however, been represented by a certain class 
 
 How far the rapid ^f persons, both iu India and England, that 
 
 expansion of foreign the rapid cxpausion of foreign trade in 
 
 trade iB" enforced." j^^-^^ ^j^-^j^ ^^^ ^^^^ ^^ ^^^^^ ^^^^ ^.^_ 
 
 nessed, far from being a blessing is a matter for the gravest 
 anxiety; that much of it, instead of being brought about by 
 the development of the resources of the country in directions 
 which will conduce to its prosperity, is really "enforced" 
 or in other words is the outcome of the necessity which its 
 political relation with England imposes on it for finding 
 the wherewithal to meet the remittances to be made to England, 
 in payment of services of a non-commercial character rendered 
 
 *' It is hardly necessary to say that in comparing prices at different periods, the 
 purchasing power of money at those periods should be taken into account. For all rough 
 calculations, the purchasing power of money in this Presidency may, I think, he measured 
 by the average prices of food grains given in paragraph 27 of this memorandum, as 
 the bulk of the income of the country is expended on food, the secondary wants of the 
 population being very few. As already stated, these prices can be relied on only as 
 showing the general direction of the movement as regards purchasing power and not as 
 accurately defining its amount. An increase in prices, when caused by the increased 
 production of the precious metals throughout the world, would not mean an increase of 
 wealth or of exchange value, nor would decrease of prices due to diminution in the cost of 
 production owing to the adoption of labour-saving processes in the manufacture of 
 commodities mean diminution of wealth. On the contrary, in the latter case the decrease 
 of prices would really mean increased power of production. The demonetization of certain 
 kinds of precious metals, e.g., silver, in favour of other metals, e.g., gold, would, by 
 decreasing the demand for the former and increasing the demand for the latter, depreciate 
 the first and give increased value to the second. The demand for precious metals again 
 for currency purposes is affected by the extension of the use of instruments of credit. It 
 would be impossible to assign correct values to all these factors, and their relative values 
 can be inferred only from general considerations. This accounts for the divergence of 
 yiewB among the members of the Koyal Commissioix on the value of the precious metals,
 
 77 
 
 by Englishmen temporarily resident here ; that the trade is to 
 a great extent monopolized by foreigners, who have ousted the 
 natives of the soil from their legitimate fields of enterprise ; 
 that the destruction of indigenous manufactures has had the 
 effect of impoverishing the artisan classes and driving them 
 to crowd on agriculture, which, owing to the capriciousness 
 of the seasons, is a precarious industry ; and that the result is 
 that the population as a whole is growing poorer and poorer 
 every day, and losing in stamina. It is, therefore, necessary to 
 examine whether there is any truth in these serious statements ; 
 to what extent the evils complained of are real, and how far 
 they are temporary and incidental to a period of transition from 
 a lower to a higher stage of industrial development, and whether 
 they are not outweighed by unquestionable benefits enjoyed by 
 the general population. In considering the above questions, 
 the trade of India must be dealt with as a whole. 
 
 34. The question of the international indebtedness of India 
 , , . is one of great complexity, and a full con- 
 
 Balance of traae. • t , • p • i • '. • i -n 
 
 sideration oi it m its various phases will 
 require more space than can be afforded in this memorandum. 
 I will therefore content myself with mentioning its most salient 
 features without entering into the minutiae of the subject. It 
 is a well known fact that the value of the exports of India 
 habitually exceeds the value of the imports, the excess being 
 due mainly to remittances which India has to make to England, 
 not with a view to redress balances accruing in the ordinary 
 operations of commerce, but on account of (1) payment of 
 interest due on loans contracted by the Government of India 
 for the ordinary purposes of Government and for the construc- 
 tion of productive works, and (2) payment for services of a 
 political and non-commercial character rendered by England to 
 India. The payments made under these heads amount to li- 
 millions sterling, equivalent at the rate of exchange prevailing 
 during the last few years to about 21 crores of rupees. Besides 
 these, there are the remittances on account of private capital 
 invested in commercial and industrial undertakings by Euro- 
 peans temporarily resident in India, as also of savings out 
 of income made by them in India in the various professions. 
 The amount of these latter remittances is not ascertainable, 
 there being no data for making even a rough estimate. All 
 these payments are made in commodities and not in money, 
 according to a well known law applicable to international trade, 
 the operation of which may be briefly explained as follows. 
 The passage of money from one country to another lessens the 
 stock of money material in the remitting and increases the
 
 1 
 
 stock in the receiving country, the result being that prices are 1 
 depressed in the former, and elevated in the latter country 
 owing to the diminution and augmentation, respectively, of the 
 volume of the currency. By this double effect, a great 
 divergence of prices of commodities and of labour in the two 
 countries is established, and it becomes profitable for the re- 
 ceiving country to receive the value of the remittances in goods 
 instead of in money. The disadvantage of this state of things 
 to the remitting country consists in its having to exchange its 
 productions on less advantageous terms than it would have 
 done, if it had no payments of a non-commercial character 
 to make. The exact measure of this disadvantage may be 
 seen from the following hypothetical case. Suppose a country 
 has a currency of 200 millions sterling and that the amount is 
 just sufficient for its requirements. If this country has to 
 make an annual payment of a non-commercial character to 
 another country to the extent of 20 millions sterling, the 
 abstraction of so much money-material depresses prices and the 
 country has to give in exchange for the commodities of other 
 countries a larger quantity of its products than it would other- 
 wise have to do. If the currency be replenished with a 
 view to establish the old scale of prices, the sum of 20 millions 
 would have to be procured by giving in exchange for it 
 commodities at the lowered prices, or in other words by giving 
 a larger quantity of goods than would have had to be given 
 at the old scale of prices. Thus, for instance, if prices were 
 depressed one-tenth, one-ninth more of commodities would have 
 to be given in return. In determining, therefore, whether 
 the payments in question amount to a " drain of the resources of 
 the remitting country" or whether they are really a " neces- 
 sary outlay " incurred for securing a large net profit, the 
 amount of such payments together with the increased cost at 
 which the quantity of money to be replaced has to be procured — 
 the two together constituting the maximum sacrifice incurred — 
 will have to be taken into account. Having regard to these 
 considerations, the following analysis will show the effect of 
 the several items of remittances to England grouped under the 
 general designation of " Home charges." 
 
 (a) The expenditure of 21 millions Ex. under this head 
 comprises, (1) 11| millions on account of interest on the debt 
 owed by the Government of India and payments made to 
 railway companies to make good the guaranteed interest ; (2) 
 5| millions on account of charges incurred in England for the 
 army ; (3) 2| millions on account of furlough and superannu- 
 ation allowances of Indian officers ; (4) f million on account
 
 79 
 
 of general administration ; and (5) f million on account of 
 miscellaneous charges including cost of stationery and stores 
 purchased in England for the Government of India. 
 
 (b) The total debt of India amounted at the end of 1889-90 
 to 201 millions, of which 98 millions were in sterling and 
 103 millions Ex. in rupees. The whole of the sterling debt 
 and about 75 per cent, of the rupee debt are held by Europeans. 
 Of the total sum of 201 millions, 122 millions have been 
 incurred for the construction of productive works — 95 millions 
 for railways and 27 millions for irrigation works — the remaining 
 79 millions being incuiTed for the purposes of general admin- 
 istration, principally wars and military defence works. The 
 Government of India has further guaranteed an interest of 5 
 per cent, on capital amounting to 71 millions invested by certain 
 railway companies in railways in India. 
 
 (c) The total outlay on railways in India, whether classed 
 as productive or not, was up to the end of 1890, 213 millions 
 Rx. The mileage open was 16,277, and 2,272 miles were 
 under construction. The net receipts from railways amounted 
 to about 10^ millions Ex. which is 4*8 per cent, on the capital 
 cost. The loss to Government on this account is about 1*8 
 millions Ex., and this is chiefly due to fall in the rate of 
 exchange. During the last 10 years there has been rapid 
 progress in railway construction, the mileage open having 
 increased from 9,000 to 16,500 or by 83 per cent. Eailways 
 cannot be expected to commence ^- to pay until some time 
 after they have been completed, and, as already stated, there 
 is a mileage of nearly 2,500 yet to be completed. Moreover, 
 many of the lines have been undertaken not as paying con- 
 cerns, but for purposes of military defence and famine protec- 
 tion of backward and inaccessible tracts which trade cannot 
 reach when the bullock power of the country for draught 
 becomes paralyzed during times of severe drought. Notwith- 
 standing these drawbacks, the railways as a whole mostly pay 
 their way, and they would fully meet their charges and leave a 
 surplus profit to Government but for the loss by exchange. 
 If the traffic improves within the next 5 or 10 years by 25 per 
 cent., which is not an improbable result, the resulting gain will 
 be such as will repa}^ the entire cost of construction in the 
 course of 50 years and leave to the country a large revenue 
 unencumbered with any charges on account of interest. 
 
 ** In 1881, the Government of India laid down that productive public works to be 
 undertakeii'by Government should, if railwaj'S, pay their expenses including interest on 
 capital cost within five years. For irrigation works the period fixed was ten years.
 
 80 
 
 (d) The amount of remittances to England on account of 
 railways is 5^ million sterling, equivalent to 8 millions Rx. 
 at the average rate of exchange. Now, there cannot be the 
 slightest doubt that the gain to the country caused by the 
 immense development of traffic greatly outweighs the interest 
 payable on the railway capital, as well as the disadvantage 
 arising from the slightly enhanced cost at which, on account 
 of remittances to England, the productions of other countries 
 have to be obtained by India. During the last ten years 
 the number of passengers carried by railways in India has 
 increased from 43 to 104 millions ; the number of live stock has 
 increased from three-quarters of a million to nearly a million ; 
 and the quantity of goods carried from 8| to 2^| million tons. 
 The cost of carriage of this quantity of goods alone is 1 3 millions 
 Ex., and as the cost of transport of goods by railway is about 
 one-fourth of the cost of transport by ordinary carts, the saving 
 under this head may be calculated at nearly 40 millions Ex., 
 supposing it to be at all possible that there could have been so 
 much merchandize to carry with the old means of conveyance. 
 This great reduction in the cost of transport is an immense 
 gain to the country and benefits all parties, the producers by 
 securing to them a higher value for their commodities and the 
 importers by enabling them to obtain the imported articles on 
 easier terms. In the internal trade, the gain is enjoyed wholly 
 by this country ; and in foreign trade it is shared between this 
 country and the country with which the trade is carried on. 
 Thus, if the exchange value of Indian goods be lowered 2 per 
 cent, on account of remittances to England of interest on 
 railway capital, and the saving in cost of carriage and consequent 
 increase of exchange value of the labour of the Indian producer 
 be enhanced 10 per cent., there is on the whole a net gain of 8 
 per cent, to the country owing to the investment of foreign capital 
 in railways. The figures taken are purely hypothetical and have 
 been used merely for purposes of illustration, but such as they 
 are, they probably understate and not overstate the gain. 
 
 (e) Similar considerations apply also to remittances to 
 England necessitated by the outlay on productive irrigation 
 works. The capital laid out on the works amounted at the end 
 of 1889-90 to 32i millions Ex., and the net revenue from the 
 works was 4 per cent, on the outlay. The irrigation works in 
 the Cauvery, Kistna and Godavari deltas and in Sindh yield 
 returns of more than 1 per cent. ; and the great canals in 
 Upper India, where they have been completed, yield a return 
 of 4^ per cent. There would be no loss whatever on this 
 account, but on the contrary a large gain, were it not for the
 
 81 
 
 capital outlay amounting to nine millions on the Orissa, 
 Kurnool and Sone canals wliich have proved disastrous*^ 
 failures. The benefit to the country by the construction of 
 irrigation works cannot, however, be measured simply by the 
 revenue realized by Government, inasmuch as the Government 
 does not take the whole of the net profit due to the provision 
 of irrigation, but only a share of it which is nominally half but 
 really much less. For instance, the capital outlay on the 
 Goddvari and Kistna works up to the end of 1889-90 was 2| 
 millions Rx and the irrigation revenue derived from the works 
 35 lakhs of rupees. During 1876-77, when the Presidency 
 was suffering from a severe famine, the production of rice in 
 the Kistna and Goddvari deltas was valued at upwards of 
 five millions Rx. Since 1876 the area under irrigation in the 
 Goddvari and Kistna deltas has increased by upwards of 50 per 
 cent., the increase in the past ten years amounting to 250,0(J0 
 acres or upwards of 29 per cent. Allowing for the decrease in 
 the prices of food -grains now as compared with the prices in 
 1876, the value of the produce in these deltas due to irrigation 
 
 *^ That much money was wasted in useless and unprofitable undertakings, and more 
 would have been but for the late Mr. Fawcett's persistent efforts amidst much dis- 
 couragement to enforce economy in Indian administration, there can be no doubt. The 
 view which he endeavoured to force on the attention of the British public was that India 
 was one of the poorest countries in the world, and administered as it was by perhaps the 
 richest nation, the utmost vigilance was necessarj' to keep down expenditure by dispensing 
 with costly luxuries which a rich country might, but a poor country could not, afiord. 
 The following facts taken from Leslie Stephen's Life of Fawcett show what great 
 necessity there was for discouraging undertakings of a speculative character which were 
 Kkely in the long run to prove disastrous to the finances of India. The Secretary of State 
 had given a guarantee for the Mutlah Railway which was to conjiect Calcutta with Port 
 Canning. It never paid its working expenses, and the Government was at last forced 
 by the terms of the contract to buy it for £500,000 or £600,000. The port was finally 
 abandoned. The Carnatic Railway Company had received a guarantee, in regard to which 
 the Indian Government was not consulted, and the result had been that Government 
 had paid £43,500 to the proprietors, whilst the aggregate net profit from the working of 
 the railway was only £2,600. Some three-quarters of a million had been spent on the 
 Godivari navigation works from which there was no return, whilst the anticipated result 
 of opening up a new line of traflSc had not been attained. It was thought better to 
 abandon the three-quarters of a million than to spend another quarter in the faint hope 
 of obtaining some better result from a completion of the works. Government had guaran- 
 teed interest on £1,000,000 to the Madras Irrigation Company. It had been forced to 
 lend the Company £600,000 to save it from collapse. Though part of it had been repaid, 
 the final result was that £1,372,000 was swallowed up without return. The irrigation 
 canal has since been purchased by Government, &c. Mr. Leslie Stephen remarks that the 
 evidence of ofiicial witnesses before the Finance Committee of 1872, and especially the 
 testimony of General Strachey, indisputablj' showed that " the accotints hitherto given (of 
 the irrigation and other works) were unsatisfactory and would not show whether a fair 
 profit had been obtained ; that disastrous bargains had been forced upon the Government 
 by the pressure of interested persons ; that the worst extravagance had occuri'ed when the 
 opinions of Indian ofiicials had been overridden by the Home Government." Ail this is, 
 however, ancient history, the Parhmentary Committees of 1872 and 1884 on Indian public 
 works having strictly defined the conditions under which public works, whether irrigation 
 works or railways, should be undertaken. It must be remembered also that if the history 
 of Public Works Administration of any country for a period of half a century be exa- 
 mined, it would be easy to point out failures even more disastrous than those of the Indian 
 Government. 
 
 11
 
 82 
 
 works may still be estimated at five millions Ex. Even if only 
 half of this sum be taken as the net gain to the ryots, it will 
 be seen that the share of the profit derived by Government is 
 only one- seventh of the fotal profit. In the Punjab during the 
 four years ending 1885-86, the area under irrigation increased 
 from If million to 2 J million acres or by 57 per cent. It is 
 hardly necessary to point out the value of irrigation works as a 
 means of protection against famine. 
 
 (/) The remittances, necessitated by the payment of inter- 
 est on the capital borrowed for productive works, are therefore, 
 on the whole, in no way injurious to the country. On the con- 
 trary, these works bid fair in the course of a few years to 
 prove highly remunerative. 
 
 {g) The ordinary debt has not increased during the last 30 
 years. Before the mutiny, the registered debt amounted to 51^ 
 millions sterling. The mutiny added 38^ millions to the account, 
 and accordingly the total debt stood at 90 millions sterling in 
 1860. The debt excluding sums borrowed for productive 
 public works or transferred to that head now stands at only 75 
 millions. The purposes for which the debts were incurred were 
 mainly wars and the strengthening of the defences of the Empire 
 owing to the advance of Kussia towards the Indian frontier. 
 The ordinary debt is less than two years' net revenue of India, 
 and no country in the world has a lighter burden of debt. The 
 interest on debt amounts to about 4^ millions Rx or 10 per cent, 
 of the net revenue of India. If the interest on capital bor- 
 rowed for productive works be taken into account, the ratio is 
 25 per cent.'^* The fact that much of the debt of India is 
 held in England doubtless makes a difference ; but, in the cir- 
 cumstances of India, this may be really an advantage. The 
 dearth of capital in this country makes it undesirable that any 
 portion of it, that is or is likely to be employed in industrial 
 undertakings, should be invested in Government securities. 
 In so far as the capital that is hoarded is attracted by Govern- 
 ment loans and invested in Government securities (as in the 
 
 ^* The percentage of interest on debt to annual revenue of some of the European coun- 
 tries in 1881-82 was as follows: 
 
 United Kingdom 
 
 Italy 
 
 Egypt . . 
 
 France . . 
 
 Japan 
 
 Spain 
 
 Portugal . , 
 
 Per cent. 
 35 
 43 
 41 
 40 
 39 
 37 
 36
 
 83 
 
 case of the Gwalior loan), the result would no doubt be bene- 
 ficial, but even in that case it is better that such capital should 
 seek investment in industrial undertakings. If loans have to 
 be contracted in foreign markets, it is desirable that Govern- 
 ment with its superior credit should contract the loans rather 
 than private individuals who cannot command equally favorable 
 terms. 
 
 (h) There is one further consideration to be borne in mind 
 in connection with remittances for interest on debt, viz., that 
 the influx of money into the country when loans are con- 
 tracted and consequent rise in prices is a set-off against the 
 depression due to remittances on account of interest in subse- 
 quent years. 
 
 (i) As regards remittances made to England to meet the 
 charges in connection with the army, superannuation and fur- 
 lough allowances of European officers employed by the Gov- 
 ernment of India, and the establishments of the Secretary of 
 State for India and his Council, amounting in all to nine 
 millions Ex, it is not necessary to say much, as they are all 
 charges necessary to secure that peace and that good gov- 
 ernment which have rendered the increased production and 
 the increased trade, which have taken place within the last 
 forty years, possible. That the gain to the country from the 
 increased production and increased trade is far in excess of the 
 charges referred to, there cannot be the slightest doubt. The 
 additional production from the extension of canal irrigation 
 alone amounts to twenty millions Ex. I do not, of course, 
 mean to say that the charges are not capable of being reduced, 
 and that, in so far as they are unnecessary or unduly high, 
 persistent efforts should not be made to enforce economy. 
 Considering the question merely from the point of view of the 
 benefits conferred by foreign trade, apart from the desirability 
 of keeping all governmental expenditure at the lowest point 
 consistent with the efficient discharge of the duties which the 
 circumstances of this country require to be undertaken by 
 Government, and apart also from the higher considerations 
 which render it necessary that the natives of the country 
 should be entrusted with positions of high trust and responsi- 
 bility in the Civil and Military services, in a liberal and not 
 grudging spirit, both as a matter of justice and as a means of 
 accelerating the advance of the nation in moral and material 
 well-being, I have no hesitation in stating that the sacrifices 
 involved in the payment of the Home charges are repaid 
 manifoldly by the benefits secured to the country, and that
 
 84 
 
 if a saving of even a couple of millions, which is, perhaps, the 
 utmost that could be expected, be effected in these charges, its 
 effect on the foreign trade would hardly be appreciable.''^ 
 
 ^5 The question of military defence is one of paramount importance, and no one that 
 is not fully acquainted with the necessities of the case can venture to pronounce an 
 opinion on the charges incurred in connection with it. The unequal, and not quite 
 equitable, distribution of charges incurred in England, has, however, formed the subject 
 of complaint by successive Finance Ministers and by the Military authorities in India. 
 The opinions of many high authorities might be referred to in support of this statement, 
 but it will suffice here to quote those of Sir John Strachey and of the Indian Army Com- 
 mission of 1879, presided over by Sir Ashley Eden, and having among its members such 
 eminent military men as Sir Frederick Roberts and Sir Peter Lumsden. Sir John 
 Strachey, in his Finance and Public Works of India, says, "I know how the powers of 
 obstruction and laissez faire, both in India and in England, are apt to stop attempts at 
 army reform, and to frustrate efforts to diminish the immense military charges row 
 imposed on the country. I am not sanguine that we shall soon see them verj' largely 
 decrease, but that they ought to be decreased, there can be no doubt whatever. It is not 
 only in India that attention to the subject of military expenditure is required. The 
 Government of India has never concealed its opinion that in apportioning the charges 
 which have to be shared between the two countries, and when the interests of Indian and 
 English rate-payers have been at stake, India has sometimes received a scant measure of 
 justice. That feeling has been increased by the knowledge learned by the experience of 
 the past that in this matter India is helpless. It is a fact, the gravity of which can hardly 
 be exaggerated, that the Indian revenues are liable to have great charges thrown upon 
 them, without the Government of India having any power of efPectual remonstrance. 
 The extension to India of the numerous measures taken in England to improve the posi- 
 tion of officers and soldiers of the army was, no doubt, right and unavoidable, but the 
 fact that heavy additional expenditure has thus been incurred by India gives her a claim 
 to expect that no efforts shall be spared to diminish the charges which are unnecessary, 
 or (if which she bears too large a share." On some of the measures above referred to, the 
 Army Commission remarks as follows : " The phort-service system has increased the cost, 
 and has materially reduced the efficiencj^ of the British troops in India. We cannot resist 
 the feeling that, in the introduction of this system, the interests of the Indian tax- 
 payers were entirely left out of consideration We believe that the whole 
 
 system of staff corps is radically unsound There can be no doubt that it has 
 
 been the cause of serious financial embarassments Its practical working has 
 
 a discouraging effect on the army and is ruinous to the State It involves a 
 
 considerable expenditure for which there is little or no return We cannot 
 
 fail to see that the substitution of local (European) troops for twenty or thirty thousands 
 of Her Majesty's British subjects would cause a saving of from £160,000 to £240,000, 
 but we feel that any such change would seriously disturb the military system of the 
 parent country and would deprive a great part of the British Army of the valuable 
 training which Indian service now furnishes. We think that the portion of the British 
 Army employed in this country should be organized and administered with due regard 
 to the interests of the people of India, and not for the purpose of supplying defects in 
 the system of Home defence, and, above all, that it should not be made the means of 
 obtaining, at the cost of India, advantages for the Army at Home, which do not directly 
 affect the interests of this country." The advance of Russia towards the Indian frontier 
 renders an augmentation of the means of defence unavoidable ; but this makes it all 
 the more necessary that the army should be organised on the most economical basis, con- 
 sistent with efficiency. Sir Charles Dilke, who has written (in his Problems of Greater 
 Britain,'] apparently with a full knowledge of the difficulties of Indian problems, says, 
 "when we contemplate the increase of the Indian Army in the event of Russia being 
 allowed to settle herself in Herat, we cannot do so without taking into view the desira- 
 bility of the creation of a separate army which is indeed forced upon us by financial 
 considerations. The present system is too ruinous to India to allow of a sufficient force 
 being kept on foot, and we shall court disaster unless we speedily change it, though 
 already, perhaps, too late to do so with safety. India, with an increased British force, 
 will be drained dry by the money asked of her for a system which is not suited to her 
 needs. When [ say a separate army, of course, I do not advocate a return to the old 
 Company's system. But the Home short service army and the army in India would he 
 under the same supreme authority of the throne. They would be alike in drill, exercise 
 and discipline, but separate in the existence of the two systems of recruiting, one for not 
 more than three years for Home service, and one for long service in India and the 
 Colonies." ,.
 
 85 
 
 35. The private remittances to England comprise the savings 
 of Europeans resident in India in the ser- 
 nuSlfofengitd:^" vice of Government and in other capaci- 
 ties, the dividends on Indian investments 
 due to residents in England, and remittances by banks pnd 
 merchants made in the course of commercial dealings. As 
 already stated, it is not possible to make even a rough estimate 
 of these remittances, Calculationf;, based on the recorded 
 values of exports and imports, have been found to yield results 
 which are obviously unreliable, these values not being suffi- 
 ciently accurate for purposes of calculations of this kind. The 
 total value of imports and exports of India is 185 millions Rx, 
 and it is obvious that even so small an error in the values 
 declared by merchants as 2| per cent., may vitiate the result 
 to the extent of 5 millions. Theoretically, the relation that 
 should subsist between exports and imports may be stated as 
 follows : — The value of exports, including bullion of a coun- 
 try, on an average of years sufficiently large to eliminate the 
 temporary fluctuations of trade in one direction or the other, 
 should exactly balance the average value of imports of mer- 
 chandise and treasure, provided, first^ the country has no share 
 in the carrying trade ; secondly^ that it does not levy any duty 
 on exports of merchandise ; and thirdly that it has not lent or 
 borrowed from other countries, and has no money to remit or 
 receive on account of loans or for other purposes. If the 
 country has a share in the carrying trade, the imports will be 
 in excess by the amount of freight earned. The same consid- 
 eration applies also to export duties which will increase the 
 imports by an equivalent amount, for, as the export duty is 
 not included in the customs ^^ house valuation of the exported 
 merchandise, and, as it must be eventually recovered from 
 the foreign countries in which the exported commodities are 
 consumed, it must, pro tanto^ increase the imports. The levy of 
 import duties does not affect the balance of trade, as they are 
 paid or recovered from the people of the country which imports 
 the merchandise. The exports of a borrowing country will 
 fall short of or exceed the imports, according as the money 
 received, by way of loan, during the period for which the 
 
 ** The valuation is made under section 30 of the Customs Act VIII of 1878, which is 
 noted below for convenience of reference. 
 
 " For the purposes of the Customs Act, the real value shall be deemed to be — 
 
 [a) the wholesale cash price less trade discount, for which goods of the like kind and 
 quality are sold, or are capable of being sold, at the time and place of importation, or 
 exportation, as the case may be, without anj' abatement or deduction whatever except (in 
 the case of goods imported) of the amount of duties payable on the importation thereof; or 
 
 {b) where such price is not ascertainable, the cost at which goods of the like kind 
 and quality could ^be delivered at such place, without any abatement or deduction except 
 aa aforesaid."
 
 S6 
 
 account is taken, exceeds or falls short of the remittances on 
 account of interest due for previous borrowings or for other 
 purposes. India has practically little or no share in the carry- 
 ing trade, the tonnage of British Indian shipping bearing only 
 the proportion of 3*8 per cent, to the total tonnage of the foreign 
 trade, amounting to 7^ million tons. As regards the duty on 
 exports, the only article that pays duty is rice, the revenue 
 derived from this source being about f million Ex. The duty 
 on opium is an excise duty, and it is included in the values 
 shown in the customs house returns, India has, of course, 
 borrowed, and is borrowing largely, from England for the con- 
 struction of productive works. In the statement of the trade 
 of British India for 5 years ending 1888-89, presented to 
 Parliament, the following account of the balance of trade, based 
 on the statistics of 12 years ending 1888-89, is given : — 
 
 Rx millions. 
 
 Exports of merchandise excluding Government transactions. 965 
 Do. of treasure ... .. ... ... ... ... 21 
 
 Indian securities enfaced for payment in England ... ... 46 
 
 Total ... 1,031 
 
 Imports of merchandise excluding Government transactions. 638 
 
 Do. of ti'easure ... " ... ... ... ... 151 
 
 India Council bills 218 
 
 Government securities retransf erred to India ... ... 32 
 
 Bills for interest on enfaced paper ... ... ... 10 
 
 Total ... 1,049 
 Balance of Imports ... 18 
 
 In the above account, the values of Government exports 
 and imports have been excluded from the values of exports 
 and imports of merchandise shown, as the net value of Govern- 
 ment imports has been included in the amount of the bills 
 drawn on India by the Secretary of State. Similarly, the 
 loans raised in England on account of India have been 
 excluded, as the amount of the Secretary of State's bills repre- 
 sents the difference between the amount of remittances to be 
 made to England and the proceeds of the loans. The bills 
 drawn by the Bank of England for the payment in England of 
 interest on Indian securities enfaced for that purpose will 
 increase exports from India by a corresponding amount, while 
 the securities themselves will increase the imports or exports 
 according as they are transferred to England or retransf erred 
 to India for value. If, however, such securities are taken 
 over to England by persons holding them, there will be no 
 effect produced on the balance of trade beyond increasing the 
 exports to the amount of the interest due on the securities
 
 87 
 
 which will have to be remitted by Government. Out of the 
 sum of 18 millions, which the above account shows as the 
 excess of imports above exports^ about 12 millions will -have 
 to be deducted on account of the export duty on rice and 
 the freight earned by the Indian shipping, leaving about 6 
 millions for 12 years, or half a million per annum, without 
 taking account of remittances on account of private savings 
 and profits of trade of Europeans in India. This shows either 
 that the private capital brought into the country exceeded the 
 amount of the savings and profits above referred to during the 
 12 years for which the account is made up, or that the declared 
 values of imported and exported merchandise are, as already 
 observed, incorrect. Sir Eichard Temple estimated the private 
 remittances from India above referred to at 1| millions in 
 1870. The salaries of Europeans employed in Government 
 service in India aggregated b^ millions in 1886, and if one- 
 fifth of these salaries is remitted to England, the remittances 
 under this head will amount to one million. These remit- 
 tances, of course, stand on the same footing as furlough and 
 superannuation charges, included in the Secretary of State's 
 drawings already referred to. As regards interest or profits 
 on foreign capital invested in industrial undertakings in India, 
 it may be stated that it is almost impossible that the remit- 
 tances on their account can have any prejudicial effect on India. 
 For, if the undertakings are successful, the increased conti- 
 nuous ^^ employment provided for labour in the country must 
 exceed greatly in value the remittances on account of interest 
 and profits, while the influx of the capital itself will alter the 
 balance of trade for the time in favour of India. If, on the 
 other hand, the undertakings are unsuccessful, there will be no 
 remittances to make, while the capital brought into the country, 
 in so far as it has been employed in the payment of labour, will 
 have been^^ a gain. 
 
 *' The accumulation of capital in England is so great that interest is continually 
 falling, and by competition the profits on investments are reduced. This meaas that 
 the profits must be very much less than the annual expenditure in industrial undertakings 
 carried on with foreign capital in India. 
 
 *" Mr. Dadhaboy N'owrojee, of Bombay, who was examined before the Royal Com- 
 mission on the Value of the Precious Metals, presented an account of the balance of trade 
 in which he claimed credit, on behalf of India, for 10 percent, on the value of exported 
 merchandise, for freight, commission and insurance charges, and for another 10 per cent, for 
 the profits of trade. His contention was, " From the very commencement of ploughing — 
 for ploughing, seed, reaping, cart or railway carriage, — to the port of shipment, carriage 
 across the seas, all charges on both sides, commission, insurance and profits, i.e., for all 
 labour and materials for all these purposes payment has to be made from the exported 
 produce itself. Every one of these items takes its share out of that produce. Putting 
 it another way, every item is paid out of the value or proceeds of the produce. If the 
 produce does not realize sufficient proceeds to pay for all the above items, the exporter 
 has to paythe deficit from his own pocket besides getting no profit." When it was 
 pointed out to Mr. Nowrojee that India could not fairly claim credit for freight,
 
 88 
 
 36. One further effect of the drawings of the Secretary of 
 
 State requires to be noticed, viz., its influ- 
 
 The effect of remit- g^^g qh ^hc rate of excbango as between 
 
 tances to England on the ,. j •^ 01 i-t-Tj.' 
 
 rates of exchange. gold and Silver. bo ioug as the Latin 
 
 Union kept up the legal relation between 
 the value of gold and silver, the oscillations in the rate of 
 exchange, caused by the international trade balances, were con- 
 fined within the limits of the cost of transport of silver to 
 France for the purpose of being coined ; but when the Latin 
 Convention was broken up, and silver was demonetized in 
 Europe, the limits referred to were done away with. The 
 India Council bills compete with silver as a mode of remit- 
 tance, and in so far as they displace silver they lower its value, 
 and there is no longer any means of preventing the rate of 
 exchange falling below a fixed level as was the case when the 
 Latin Union was in force. There is no means of estimating 
 to what extent the increase in the Secretary of State's drawings 
 in recent years has contributed to the fall in the rate of ex- 
 change, but that it does exercise considerable influence there 
 seems to be little reason to doubt. But, at the same time, it 
 must be remembered that the portion of the Home charges 
 and private remittances which represents investments of capital 
 may, and in fact does, increase the exports of merchandise, so 
 as, pro tanto, to create a balance of trade in favour of India. 
 Sir David Barbour, in his minute, appended to the Eeport of 
 the Commissioners on the Value of the Precious Metals, puts 
 this matter in a clear light. He says : — 
 
 insurance, &c., not earned by her, in respect of goods purchased by English merchants at 
 the Indian ports and carried to England by them at their own expense and risk, and sold 
 by them to English consimiers at prices sufficient to cover these additional charges, he was 
 willing to give up the claim as regards freight and insurance, but not as regards the 
 profits of trade. If his contention were correct, it would follow that India would be 
 entitled to the profits of retail trade in England and also to the profits of English cotton 
 manufactures, because Indian cotton is turned into cloth. There is no doubt that 
 Mr. Nowrojec did good service in 1872, in calling the attention of the Parliamentary 
 Committee on Indian Finance pointedly to the disadvantage resulting to India from 
 the constant increase in Home remittances, at a time when there was considerable 
 risk of Government wasting borrowed money on so-called productive works ; and the 
 position he took up was unassailable and reaffirmed bj' the Parliamentary Committees 
 on Public Works in 1879 and 1884. Mr. Nowrojee, however, has since made very exag- 
 gerated statemcDts regarding the evil effects of these remittances. Mr. M. G. Ranade 
 pointed this out very clearly and his remarks are worth-quoting. He said : " There are 
 people who think that so long as we have a heavy tribute to pay to England, which takes 
 away nearly 20 crores of our surplus exports, we are doomed and can do nothing to help 
 ourselves. This is, however, hardly a fair or a manly position to take up. A portion of 
 the burden represents interest on monc3'S advanced to, or invested in, our country, and so 
 far from complaining, we have reason to be thankful that we have a creditor who supplies 
 our needs at such a low rate of interest. Another portion represents the value of stores 
 supplied to us, the like of which we cannot produce here. The remainder is alleged to be 
 more or less necessary for the purposes of defence and payment of pensions and though 
 there is good cause for complaint that it is not all necessary, we should not forget the 
 fact that we are enabled by reason of this British connection to levy an equiv.alent tribute 
 from China by our opium monopoly."
 
 89 
 
 '' A considerable amount of imports (such as railway plant 
 and machinery) really represents the investment of English 
 capital in India, is not paid for at the time, and, consequently, 
 has no effect on the exchange of the year. Of coui'se, all 
 investments of foreign capital affect the exchange in subsequent 
 years, when profits or interest come to be remitted from India ; 
 but such investments are generally made in industries connected 
 with the international trade, and, so far as they increase Indian 
 exports, they counteract the tendency to a fall in the exchange 
 owing to the remittance of profits. It is quite possible, and 
 even probable, that an investment of foreign capital in India 
 might so increase the exports as to favorably influence the 
 exchange. For example, if one million sterling is invested 
 in jute mills, and such investment increases the exports of 
 India by £200,000 yearly, while only necessitating a remittance 
 of £50,000 yearly on account of profits, the international account 
 has been altered in India's favour to the extent of £150,000, 
 and the tendency is to raise and not to lower exchange. The 
 investment of foreign capital in tea gardens in India is a case in 
 point. The whole of the exports of tea from India are due to 
 this cause and the value of these exports is much more than 
 sufficient to cover the remittance of profits and pay for such 
 articles of import as are required in the manufacture of tea. The 
 international equation has, therefore, been altered to the advan- 
 tage of India and not to her disadvantage by these investments." 
 
 As regards the general effect of the remittances to England 
 on the trade of India, Sir David Barbour observes : '' It is 
 commonly said that if one country has a payment to make to 
 another, the country which has the payment to make trades 
 at a disadvantage. The theory, as a theory, is unassailable. 
 But in practice there are many more important factors which 
 influence international trade, and, if the payment is made on 
 account of foreign capital judiciously invested^ the net effect of 
 the whole transaction may be to improve the relative position 
 of the country which has the payment to make. 
 
 ''Payments, for which no direct commercial equivalent is 
 received, are made in an increasing amount to England every 
 year by foreign countries, and consequently the relative posi- 
 tion of England in the international trade must be improving, 
 and England should be receiving an increasing quantity of 
 foreign produce in exchange for her exports. Yet, the facts 
 since 1873 do not bear out this contention. If we take the 
 price of a certain quantity of English exports in 1873 at £100, 
 and the price of a certain quantity of English imports at the 
 same fi*gure, the prices of the same quantities in 1886 will be 
 £62 and £69, respectively, according to Mr. Giffen's figures. 
 
 12
 
 do 
 
 We thus see that if a certain quantity of English exports ex- 
 
 ch' ngod for a certain quantity of imports in 1873, the same 
 quantity of exports would iu 1886 have failed to exchange for 
 the same quantity of imports in the proportion of 62 to 69. In 
 other words, goods for goods, England was making a worse 
 bargain internationally in 1886 than iu 1873 by 11 per cent. 
 
 "It is true, that, in 1873 England was exchanging her 
 exports for foreign products on specially favorable terms, but 
 the figures just given show that the question of the relative 
 indebtedness of different nations is a comparatively minor 
 factor in determining the conditions of international trade. 
 
 " There are no figures of equal authority which can be 
 used in determining on what terms India is now trading with 
 other countries as compared with former times, but all the 
 enquiries I have *^ made point in the same direction, viz., that 
 a certain quantity of Indian produce laid down at Calcutta or 
 Bombay will, at the present time, exchange for a larger quan- 
 tity of imported goods than it would have done in 1870 or 
 1 873. The theory that India is hampered in her foreign 
 trade by the drawings of the India Council appears, therefore, 
 to be without foundation. That India would be tvcalthier if 
 these draivings ceased^ while India retained the advantages arising 
 from the causes which have brought about the drawings, may cer- 
 tainlf/ be admitted. That India woulil now be importing more 
 goods of all kinds, including silver, if the causes which have led to 
 the draivings of the hvHa Council had never come into operation, is 
 not merely unproved, but is absolutely opposed to the facts so far as 
 they can be ascertained^ 1 have ventured to italicize the last 
 portion of the quotation as it contains the gist of the argument. 
 
 *' I have assumed in other portions of this memorandum that the prices of food- 
 grains are now 1\ times what they were in 1850, or in other words, the purchasing 
 power of silver, as moasured by the quantity of food-grains silver would purchase, has 
 fallen GO per cent. The fall would hav« been greater but for the cheapening of tlie cost 
 of transport arid consequent lowering of prices nf commodities at tlio principal markets. 
 If the reduction in prices, due to saving in the cost of tiansport, be taken at 25 per cent., 
 the fall in the pur -hasing power of silver in India would be really 70 per cent. In 
 England, prices of commodities measured in geld rose dui-ing 1850 to 1873, when they 
 were "20 per cent. hi<;hef than thej were before the .Australian and ('alifornian gold dis- 
 coverifs. Since then they havef.lkn to about the level of 1850. One sovereign, 
 however, was equivalent in 1850 to 'I's. 10 ; now 1 sovereign is equivalent to J<s. 15. 
 Since 1S50, the purchasing power of silver in England has therefore fallen by one-third 
 or .\'6\ per cent. Taking account of the saving in the cost of production and trans- 
 port whir'h may be assumed to be 30 per cent., silver has reallv fallen in Viilue in 
 England 53i per cent, as a-jainst 70 per cent, in India, that is, silver has fallen in value 
 in Inlia in a higher ratio than in Eni>land, or in other words, the advantage d(Tivcd 
 by Engbind in the trade of India by almndance of money and consequent hiqjlier scale of 
 prices, is iliminishing notwithstanding the so-called '■'■tribute.''^ as foreign trade has 
 enabled Ind;a to riq^lenish her insulh :ient currency. Thus t:iking the higher ethcicncj' 
 of profluction in Englind iis conip:irel with India since 18''0 into account, the silver 
 value of a unit of ))roductivc pow( r in India a- comjiarcd with silver value of a unit of 
 power in England has risen in the ratio of '0 to 4Gf or as 9 to 14. These ca'icul itions 
 are very rough and some of the figures taken are hypothetical. They merely serve to 
 illustrate the principle.
 
 91 
 
 37. Another proof of the fact tliat India has not been im- 
 poverished but enriched l.y foreij^n trade is 
 jTi^^oiU:!^ '"' tound in the large imports of' gold and 
 silver since 1850. The value of gold 
 imported into India from Europe and not re-cxpoiced from 
 1565 to 1835, a period of 27U years, has been estimated at 112 
 millions sterling. Mr. Claremont Daniell in his Industrial 
 Competition of Asia conjectures that of this amount about 50 
 millions were probably taken over to China and other places. 
 Including the gold obtained from China, Burma and other 
 Asiatic sources, the total gold in India in 1835 is estimated 
 at 140 millions. Since 1835 and up to the end of 1S90-91, the 
 net imports of gold have amounted to upwards of 140 millions, 
 and nearly the whole of this amount has been imported since 
 1850. As gold is not used for purposes of currency in India, 
 the imports have been made for the purpose of manufacture 
 into ornaments or hoarding. The total annual production of 
 gold at present is estimated at 20 millions sterling, of which 
 one-fourth is sent to India. The total net imports of silver 
 into India since 1850 amount to 302 millions lix. The value 
 of silver coined in British India has been estimated at 317 
 millions Ex or Es. 15 per head of the population. If India 
 had chosen to take the imports in commodities instead of in 
 gold and silver, it would not show that she was deriving no 
 advantage; on the contrary, it would doubtless be a great boon 
 to the country if the value that is locked up in ornaments and 
 coinage were turned into capital useful for industrial under- 
 takings ; but the large quantity of imports of gold and silver, 
 amounting to a considerable proportion of the total prcKluction 
 of the precious metals, unquestionably shows that India is not 
 losing but gaining by international trade. 
 
 88. The complaint that European exploitation has had the 
 , . . effect of driving out natives from their legiti- 
 
 European exploitation. j/>ii p • t j • ^ , • • , 
 
 mate helds oi industrial enterprise is not true 
 of the Madras Presidency, nor is it true of other parts of India to 
 any great extent. The chief undertakings in which Europeans 
 are engaged are the cultivation of coffee, tea and cinchona, and 
 gold-mining, and these are all fields which were previously 
 unoccupied, and which would not be occupied if it were not for 
 the importation of European capital and enterprise. We have 
 already seen that indigo manufacture in this Presidency in 
 which Europeans once took part has now, to a great extent, 
 passed into the hands of the natives of the country. Coffee 
 cultivation has not been remunerative of late years, and it has 
 also, to a ^considerable extent, passed into native hands. The
 
 92 
 
 natives who can work the estates cheaply have a great advan- 
 tage over Europeans, and with daily increasing knowledge and 
 experience they will doubtless take an increasing share in enter- 
 prises of this kind. The natives are also beginning to take a 
 larger share in mercantile transactions connected with articles 
 of export and import trade, the opening of the Suez Canal and 
 the increase in the direct trade of India with the principal 
 countries of Continental Europe having taken away from what 
 of the character of monopoly which long established European 
 houses of agency may have once possessed. Mr. Slagg in his 
 article on Cotton Industry contributed to the jubilee volume, 
 entitled The Reign of Queen Victoria^ gives the following account 
 of the changes that have taken place in this respect as regards 
 the cotton trade. He states : "In many cases the cotton 
 spinner and manufacturer of India deals directly with the cotton 
 producer on the one hand, and the merchant shipper on the 
 other, and in nearly all cases the old charges for brokerage 
 and agency have experienced a considerable reduction. Fifty 
 years ago the commission charged for selling goods in India, 
 including guarantee of sales and discount on remittances, 
 amounted to from 8^ to 5 per cent., to which was added about 
 2i per cent, for sundry charges, landing, storing and godown 
 rent. These are now reduced to a total of about 4 per cent., 
 though the downward tendency of the latter charges was checked 
 by the Indian mutiny. The charges for packing and shipment 
 have also been diminished by 1 J or 2 per cent., while the opening 
 of the Suez Canal and the consequent development and competi- 
 tion in steam transit have produced a marvellous economy of 
 cost and time on the old system of shipment. Mr. Goschen has 
 observed that the carriage of a ton of goods from Manchester 
 to Bombay, including the railway to Liverpool, the Suez Canal 
 dues and the freight, is now little more than the price of a 
 second class ticket from London to Manchester. The shortening 
 of the voyage by the substitution of steamers for sailing vessels 
 and the adoption of the Suez Canal route instead of the old route 
 round the Cape of Good Hope has reduced the time taken in 
 the delivery of goods, which is equivalent to a diminution of 
 about 2| per cent., if the additional rent and insurance under 
 the old system, added to the loss of interest, be taken into 
 consideration. The increase of telegraphic communication, and 
 to some extent the use of the telephone, have tended to destroy 
 the old custom of keeping large stocks of goods stored in the 
 warehouses of Manchester or in the ' godowns ' in India, and 
 sales are often made in Calcutta or Bombay of goods whi'^h have 
 yet to be manufactured or even bleached or dyed in Lancashire.
 
 93 
 
 The ' Banias ' or native dealers now send to England a con- 
 siderable number of direct orders, and several of the principal 
 ' Banias ' have their own agents or representatives in Man- 
 chester who ship direct to their orders." In the Madras town, 
 I am informed that with the aid of the facilities afforded by the 
 Bank of Madras and other banks for obtaining loans, native 
 merchants with small means are in increasing numbers carrying 
 on a trade in articles of foreign merchandise. In Cocanada, 
 which is daily rising in importance as a commercial centre, 
 the competition of native merchants has led to the closing of 
 some European firms. The direct trade of India with the 
 countries of Continental Europe has made it more difficult for 
 English merchants to combine to keep natives out of mercantile 
 pursuits in which the latter may not hitherto have had a share. 
 For instance until April 1885, with a view to keep Indian cotton 
 manufactures out of the China market, the freight to China was 
 kept by a combination of English steamer companies at the 
 prohibitive rate of B,s. 15 a ton, and repeated efforts on the part 
 of the Bombay mill owners failed to effect a reduction lower 
 than Es. 12. The Italian line of steamers then stepped in and 
 accepted freight at Es. 8 and the consequence has been that the 
 English companies themselves have since reduced the rate to 
 Es. 5. 
 
 39. There is, however, very considerable truth in the com- 
 plaint that foreign trade has aft'ected pre- 
 geno^ industries. ™^ judicially the old manufacturing industries 
 of the country and impoverished the classes 
 engaged in them. The spinning and weaving trades, especially, 
 have suffered severely from foreign competition, and the former 
 as a separate profession is rapidly disappearing, what remains 
 of it being confined to the spinning of fine thread for cloths 
 of superior texture and extreme tenuity such as could not be 
 produced by machinery, and of coarse thread for the coarse thick 
 cloths woven for the use of the lower classes of the agricultural 
 population. The demand for very costly cloths of superior 
 texture worn by men of the higher classes has considerably 
 fallen, not so much owing to Manchester competition as to the 
 change of fashion, English broad cloth having, to a considerable 
 extent, superseded them as articles of dress. On the other 
 hand, there has been considerable extension of demand for 
 female colored cloths made with imported fine yarn, Kornadu 
 cloths for instance ; and in particular centres of industry such 
 as Kornadu, Kuttalam and other places, the position of the 
 weavers Jias really improved. Large sections of the agricultural 
 population still use coarse cloths made of country yarn which, if
 
 94 
 
 somewliat dearer than machine-made cloths, are preferred to the 
 latter as being more durable and warmer. The coarse thread 
 is spun by the agriculturists themselves and given to weavers 
 who weave them into cloth on being paid about one rupee or its 
 equivalent in grain for each cloth. These cloths are extensively 
 in use in the Ceded districts, Kurnool, Coimbatore and Salem, 
 where the cold in the winter months is severer than in other 
 parts of the Presidency. The amount of weaving done in the 
 country has not probably diminished sensibly of late years, but 
 the profits of the weavers, both on account of the Manchester 
 competition and the additional pressure on the weaving industry 
 due to the collapse of the spinning industry, have undoubtedly 
 been much reduced.^*' The Madras Board of Eevenue, who 
 instituted enquiries into the condition of the weaving industry 
 in 1871 and again in 1890, have reported to the same effect. 
 In 1871, the number of looms at work was nearly 280,000 or 
 nearly 42 per cent, higher than the number at work between 
 1856-57 and 1860-61, as ascertained for the purpose of assess- 
 ing the old moturpha tax. The returns for the earlier years, 
 however, were imperfect and not fully to be relied on, and the 
 Board estimated the real increase at between 20 and 25 per 
 cent, and attributed the advance to the abolition of the vexatious 
 and inquisitorial moturpha tax. The total quantity of twist 
 worked up into cloth was estimated at 31|^ million lb., of which 
 11 J millions were imported and 20 millions spun in the country. 
 In 1889 the number of looms at work was ascertained to be 
 300,000 exhibiting an increase since 1871 of 7 per cent., while 
 the increase in the population is 14 per cent. The quantity of 
 twist worked up into cloth was estimated at 34 J millions — an 
 increase of a little less than 10 per cent. — of which 19 millions 
 were imported, 1 million was manufactured in the Indian mills 
 and 14| millions were hand-made. Since 1871, the outturn of 
 hand-made yarn has, therefore, diminished by 22^ per cent. 
 For the whole of India the total production of cotton was esti- 
 mated in 1869 at 7*1 million cwt., of which 5 millions were 
 exported and 2*1 million cwt. consumed in India — ^ million 
 by the Indian mills and 1-8 million by the hand-looms. In 
 1888-89, the total production was estimated at 9| million cwts., 
 of which 5^ millions were exported to foreign countries, 3 
 millions were consumed by the Indian mills and 1 million by the 
 hand-looms in India. This shows that hand-spun yarn is being 
 rapidly superseded by yarn made in the Indian mills, and that 
 what the hereditary spinning classes have to fear now is not the 
 
 ** See appendix V.-F. (17) for a note on the condition of weavers in the Madura town.
 
 95 
 
 competition of Manchester, but that of the Indian mills. The 
 extension of the cotton mill industry in India during the last 15 
 years has been truly remarkable. In 1 870 the number of cotton 
 mills in Bombay was only 12 with 819, o94 spindles and 4,199 
 looms. The number of persons employed was 8,199 and the 
 quantity of cotton worked up 220,000 cwts. The industry then 
 was by no means in a thriving condition, and of the paid up 
 capital, I ~ million ilx, the then value at the market quotations 
 of the shares was only j- million Ex, showing a loss of more 
 than half a million. The return for capital invested was 4 per 
 cent., while the Government stock at 4 per cent, was selling at 
 8 discount. In the other Provinces there were a few mills 
 which, however, did not do any real business. Now there are 
 124 mills in the whole of India with 3,274,196 spindles and 
 23,142 looms. The number of persons employed is 112,000, 
 and the quantity of cotton worked up 3^ million cwts. The 
 capital invested in these mills is estimated at about 12 millions 
 Ex, a very considerable portion of which is native capital. 
 The exports of cotton goods from India chiefly to China, Japan, 
 and the East Coast of Africa, which amounted to 1-3 million 
 Ex in 1870, have increased to 8-5 million Ex. The require- 
 ments of India as regards cotton cloth have been estimated at 
 3,200 million yards, of which about 2,000 millions are imported 
 and the remainder made in the country. About 600 million 
 yards were in 1890-91 exported from India to foreign countries. 
 There is every prospect of the products of Indian mills not 
 only taking entire possession, at no distant date, of the markets 
 in China, Japan and East Africa, but also of driving out the 
 Manchester cloths of all but the finest kinds from India. A 
 majority of the Committee appointed by the Manchester 
 Chamber of Commerce to enquire into the causes of the rapid 
 development of the mill industry in India, has recently re- 
 ported after full investigation that the main cause, which has 
 favored the increase of mills and enabled them to a great 
 extent to supply China and Japan with yarns formerly shipped 
 from Lancashire, is their geographical position which places 
 them in close proximity to the cotton fields on the one hand 
 and the consuming countries on the other. The net advantage 
 to the Indian spinner from these circumstances over his com- 
 petitor in England, after allowing for the extra outlay on 
 machinery, and consequent enhanced interest and deprecia- 
 tion, as well as greater expenditure on such items as imported 
 coal, stores, &o., was estimated by the committee as equal to 
 at least |</. per lb. on the portion that is shipped to China and 
 Japan, and \^d. to |r/. per lb. on what is consumed in India
 
 96 
 
 itself .^^ The import trade in English piece goods has for the 
 last 5 or 6 years shown no progress. In the review of the 
 Indian trade for 1890-91 Mr. O'Conor remarks : " It may be 
 said that, if it had not been for the competition of the Indian 
 mills, the trade in piece goods in 1890-91 should have been* at 
 least 10 per cent, larger than it was, and that to this extent at 
 any rate the cloth woven in the Indian mills, or from yarn 
 spun there, has within 5 years taken the place of imported 
 cloths in our markets. The extent of the diversion, is, how- 
 ever, probably greater. In other kinds of cotton goods, there 
 has been a moderate increase, these being mainly of descrip- 
 tions which are not woven in India either from locally spun or 
 imported yarns, but these kinds are relatively of trifling dimen- 
 sions. It would seem in fact that the time is not very far dis- 
 tant when the imports of the coarser and medium cottons which 
 form the bulk of the trade will gradually disappear, and that 
 the trade will be limited to the finer qualities and therefore of 
 
 51 See Well's Recent Economic Changes. Mr. Wells remarks: "Other circumstances, 
 such as cheaper labour and longer factory hours, may have also favored the Indian manu- 
 factui-es ; but these differences as respects the conditions of labour in England and India 
 have existed from time immemorial ; and the real novelty of the present situation is, that 
 India, with rail-roads and factories, and the advantage of cheap ocean freights, is now 
 emancipating herself from chronic sluggishness and beginning to participate in the 
 world's progress; and imder English auspices, and largely with English capital, is, for 
 the tirst time, extensively utilizing her geographical position and her cheap and abundant 
 labour in connection with labour-saving machinery." Mr. T. Comber who was examined 
 by the Royal Commission on the value of the Precious metals presented the following 
 statement showing the comparative cost of manufacturing 1 lb. of 20's yam in Bombay 
 and England, and of its transport to China, the rate of exchange being taken at Is. bd. 
 
 per iiipee : — 
 
 English Indian 
 spinner, spinner. 
 
 d. d. 
 
 Cotton U lb 
 
 Depreciation and interest on mill and machinery 
 
 Coals 
 
 Wages 
 
 Stores 
 
 Sundries 
 
 Packing and carriage to Bombay 
 
 5-69 
 
 5-00 
 
 •42 
 
 •64 
 
 •05 
 
 •16 
 
 111 
 
 •99 
 
 •28 
 
 •46 
 
 •40 
 
 •25 
 
 7^95 
 
 7^50 
 
 •50 
 
 •• 
 
 8-45 
 
 7-50 
 
 ■20 
 
 •26 
 
 8^65 
 
 7-76 
 
 
 •89 
 
 Delivered at Bombay 
 
 Packing and carriage to China . . . . ('70 — '50) 
 
 Delivered in China . . 
 
 Advantage in favour of the Indian produce 
 
 The English spinner has an advantage in interest and depreciation and coals, but the 
 Indian spinner has a still greater advantage in wages and cost of transport both of the 
 raw material and the manufactured product. The factory hands in India are not indi- 
 vidually as efiicicnt as the English operatives, but as the rate of wages is much lower, 
 the net advantage to the Indian spinner is 10 per cent. Moreover, it is stated, that, by 
 longer training, the Indian hand has l)ccom(! more effective than formerly, and recent 
 improvements in machinery have rendered it so automatic that much which formerly 
 had to be done by hand, is now done by machine and this greatly diminishes the superior 
 skill of the Lancashire hand.
 
 97 
 
 small dimensions." Tkis condition of things has, as might be 
 naturally expected, excited the greatest alarm among the Man- 
 chester manufacturers, and in proof of it Mr. 0' Conor quotes 
 the following passages from a letter of the Commercial corre- 
 spondent in London of the Times of India : " Several specimens 
 of dhooties manufactured in India were laid on the table for 
 inspection at the meeting of the Blackburn Chamber of Com- 
 merce on Wednesday. Mr. Alexander Harrison, who presided, 
 said that during the last ten years it has been the general 
 opinion in Lancashire that it is impossible for mill-owners in 
 India to make dhooties from 40's or the 50's yarns, but here 
 before their eyes were remarkably good specimens of dhooties 
 made from 40's twist and 50's Egyptian weft, Mr. Harrison 
 added that in his mind there never had been any insuperable 
 difficulty that would prevent Indian manufacturers from pro- 
 ducing tine counts, and he owned the opinion that in India in 
 time they will grow their own cotton and weave these fine 
 counts. The manufacturers of Lancashire should carefully 
 watch the doings of the Indian manufacturers, or they will find 
 not only that the coarse yam trade has gone, but that the medium 
 trade will go also. And he urged that it is time for Lancashire 
 manufacturers to consider their situation and to take means 
 to fortify themselves against encroachments on their interest." 
 What the means referred to are intended to be, whether they 
 are the pressure brought to bear on the Indian Government to 
 enact stringent factory ^"^ laws not suited to the conditions of 
 labour in this country, or less illegitimate methods, has not 
 been stated ; but whatever they may be, it is devoutly to be 
 hoped that no artificial obstacles will be placed in the way of 
 the development of the nascent factory industries in India, 
 which may enable Indian manufacturers to regain much of the 
 ground they have lost under the stress of Manchester com- 
 petition. 
 
 40. It is clear, however, that the hereditary spinning and 
 
 weaving castes have nothing to hope for in 
 
 loom wetvo?s/a ntes-' the futurc, ovcu if India should mauu- 
 
 sary stage in industrial facturc all the clothiug required for the 
 
 e\e opmen . ^^^ ^^ ^^^ owQ population as wcU as to meet 
 
 the demands of foreign markets. The deterioration of these 
 
 classes has now been going on for over a hundred years. Mr. 
 
 White (one of the members of Council of the Grovernor of 
 
 ** In this connection the following passage from a speech of the President of the 
 Blackburn Chamber of Commerce will be read with some amusement. He said : " They 
 (the Lancashii-e manufacturers) felt not one jot of opposition as being hostile to Indian 
 industry ; bJit they did protest against any industry being fostered upon the lives of little 
 children and women, upon the blood and sinews of the men who had to work in the mill 
 •toves and dust-iloles of th? cotton jenny workshops of India."
 
 98 
 
 Madras), writing in 1793, states that the mortality occasioned 
 by the famine that had occurred just then fell heaviest on the 
 weaving and spinning classes. They were in the best of times 
 a poverty-stricken class. The fluctuations in the weaving trade 
 of India are very instructive. Cotton manufactures before the 
 seventeenth century were practically unknown in England, 
 and woollen manufacture was the great national industry, so 
 much so, that cotton cloths were designated "linens" and 
 raw cotton was believed to be a kind of " wool." In 1621, 
 Mr. Munn, one of the Directors of the East India Company, 
 estimated the annual importation at 50,000 pieces of cotton 
 cloth, the average cost of each piece on board in India being 
 7s. and the selling price in England 20s, The importation in 
 1674-75 had increased to the value of £160,000. The silk 
 and wool weavers became alarmed for their trade and serious 
 riots took place in various parts of England, and in consequence 
 the further introduction of Indian goods into England was 
 interdicted in 1700. In 1721, another statute was enacted, 
 enforcing the prohibition by a penalty of £5 for each offence 
 on the part of the wearer of Indian goods and a penalty of 
 £20 on the seller of such goods. The exports of cotton goods 
 to England were thus much restricted. In 1767 and 1769 
 Hargreaves' and Ai'kwright's inventions — spinning jenny and 
 spinning frame — came into use, and England began to manu- 
 facture cotton cloth on an extensive scale. India's export 
 trade was then confined to supplying some of the Asiatic 
 countries, and soon after, England took possession of these 
 markets. This dealt the first blow to the weaving classes in 
 India and the effect of it was enhanced by the breaking up 
 of the trading establishments of the East India Company when 
 its trading privileges were abolished in 1813 and 1833. The 
 rapid development of machinery and manufactures and the 
 cheapness with which cotton cloths were produced in England 
 led to India being flooded with Manchester goods to the 
 further injury of the weaving classes here. Now the tide has 
 turned, aad the development of factories in India bids fair 
 to enable her to manufacture the goods required for her own 
 population, even more cheaply than England, and to compete 
 with England in foreign markets. This means that India, by 
 means of the advantages conferred by foreign trade, has been 
 enabled to organize her productive powers on the most econo- 
 mical basis ; but as every factory hand will displace 30 or more 
 weavers and spinners, it is clear that the deterioration of these 
 classes will be even more rapid than in the past. Spinning as a 
 bye industry may be carried on by agriculturists to 'provide 
 themselves with the coarse but durable cloths which mills do
 
 99 
 
 not turn out, and the weaving of superior cloths for women 
 will doubtless still exist ; but on the whole the trade of the 
 hand-loom weavers will have shrunk to small dimensions. The 
 sufferings of the weavers are great and such as to excite 
 commiseration, but these sufferings are no more than have 
 always been caused to protected classes whenever labour- 
 saving machinery has been brought into use. In England, for 
 instance, the sufferings of weavers were even more intense than 
 those of the corresponding classes in India, owing to the simul- 
 taneous introduction of machinery both in manufactures and 
 agriculture and the consequent economising of labour in both 
 directions. ^^ A writer describing the condition of the weavers 
 in the early years of the present century states : " The most 
 miserable class of artizans were the hand-loom weavers, who 
 long continued to carry on their trade at home. The use of 
 power looms was slowly adopted ; and even after they were 
 generally introduced, the hand-loom weaver could not change 
 his mode of life, but continued to practise his craft at home. 
 He could only earn miserable wages. He lived an isolated, 
 degraded life, and it was the hand-loom weavers who were the 
 foremost in the destruction of machinery and the burning of 
 mills. The Luddites, authors of the most destructive riots which 
 began at !N"ottingham, were, for the most part, hand-loom 
 weavers. As prices rose and distress became more general, 
 these men more and more looked upon the machinery as the 
 cause of all their woes, and joined eagerly in their destruction." 
 In India the abundance of waste lands and the possibility of 
 a portion of the weaving population finding work in the cul- 
 tivation of lands is some mitigation, however inadequate, of 
 their unfortunate position. 
 
 41. Another industry which has suffered from foreign- 
 competition is the manufacture of iron. 
 ma^'facSofiro'k.*^' ^^^^^ contaius an abundant supply of iron 
 ore and native works for iron smelting were 
 not very long ago scattered all over the Peninsula, and Indian 
 steel was famous. Dr. Buchanan has described minutely the 
 processes employed by native manufacturers in 1800 for smelt- 
 ing iron in the districts of Salem, Coimbatore, Malabar and 
 South Canara. The charcoal used was very great in compari- 
 son with the results obtained. In Salem, it is stated that iron 
 ore containing 72 per cent, of metal, yields only 15 per cent, 
 of bar iron. The clearance of forests and the consequent rise 
 in the price of charcoal have nearly extinguished this indus- 
 try ; anrjl iron smelters in many regions are the hardest 
 
 *3 See Mrs. Creighton's Social History of England^
 
 100 
 
 worked, but the poorest among the population. The iron 
 (which is of very good quality and superior to the imported 
 article) is sold at a high price ; nevertheless the amount of 
 iron produced bears but a miserable proportion to the labour, 
 time and material expended. The class that has suffered .is, 
 however, numerically a small one, while the benefit to the 
 general population by the fall in the price of imported iron 
 and by the prevention of the indiscriminate felling of forests 
 for charcoal burning has been very great. The extent of 
 the benefit may be estimated from the following figures : 
 During the past 18 years, the imports of iron into India have 
 been doubled both in quantity and value, while those of steel 
 have increased more than 15 times in quantity, but less than 4 
 times in value, thus showing that the value of imported steel 
 is only about one-fourth of what it was before. The imports of 
 hardware and cutlery have increased more than two-fold, while 
 those of railway and rolling stock have increased more than 
 5 times. The imports of machinery have increased from about 
 5 lakhs in 1850-51, to nearly 2^ crores in 1888-89, thus 
 showing an immense advance in the steam-power of the coun- 
 try. There are also indications that this country will ere long 
 be able to manufacture iron on a larger scale than hitherto by 
 the adoption of improved processes. The discovery of coal in 
 various parts of the country and the methods invented for its 
 economical use afford promise of a great future for the iron 
 industry. Fifty years ago the Madras Government spent con- 
 siderable sums of money in subsidizing the Porto Novo 
 Company in the hope of creating and developing an iron 
 manufacturing industry according to European processes. The 
 scheme failed owing to the difficulty of obtaining charcoal. 
 Kecently, however, it appears that near Pondicherry, not far 
 from Porto Novo, extensive beds of coal, 10,000 acres in 
 extent, capable of producing 250 million tons have been dis- 
 covered ; whether this will lead to an iron manufacturing 
 industry being re-established in those parts it is difficult to 
 say, but considering the startling rapidity with which methods 
 for developing and utilizing natural resources are being dis- 
 covered by science at the present day, it is not too much to 
 hope that the rich iron ores of Southern India will not long 
 remain unutilized. 
 
 42. The shipping trade of India has suffered also, Mr. 
 ^ , . . . _, , O'Conor in the Trade Keport of India for 
 
 ployed in the foreign trade do not increase. They represent 
 less than 2~ per cent, of the total tonnage. Except for in- 
 tercourse with the Straits and the Malayan Archipelago,
 
 101 
 
 Ceylon, the Maldives and tlie Coast from Karachi to Muscat, 
 these craft will eventually disappear from the foreign carrying 
 trade." This is not a result to be much regretted, as the 
 employment of these small craft of burden averaging 50 tons 
 eaeh is not compatible with the enormous growth of the foreign 
 trade of India, and as further it is the use of steam vessels for 
 carriage that has developed the trade with China in Indian 
 cotton manufactures. The small craft, however, will continue 
 to be used in the carriage of the cheapest and bulkiest articles 
 between the smaller ports which steamers do not enter. 
 
 43. Against the disadvantage to the indigenous industries 
 above referred to, have to be set off the 
 facToryinrsfe"''' ^ow industries which foreign trade has 
 created. The new industries which have 
 sprung up in the Madras Presidency have already been noticed. 
 Taking India as a whole, three important new industries may 
 be mentioned, viz., jute, tea and coal. The export of jute in 
 1828 was 364 cwts. valued at 62 Ex. In 1850-51 the value 
 of the exports of raw jute amounted to 197,071 Rx and of 
 manufactured jute to 215,978 Rx. In 1890-91 the values 
 were 7*6 millions Rx and 2*5 millions Rx, respectively. Jute 
 cultivation is entirely carried on by the natives of the country, 
 without any extraneous help. Baboo Hem Chunder Kerr in 
 his report on the jute cultivation in Bengal writes : " It is 
 usual with some to descant on the apathy, ignorance and want 
 of enterprise of the people of this country, and of the ryots 
 in particular, but the figures here given prove beyond the 
 shadow of a cavil, that they are, notwithstanding their alleged 
 or real defects, sufficiently long-headed thoroughly to under- 
 stand their interest and capable of creating and extending in 
 five and forty years a trade to the value of nearly 4^ million 
 sterling (now 10 million Rx) without any aid from without. 
 That they are capable, likewise, of sustaining this trade and 
 extending it if required and made worth their while, no one 
 will, I feel certain, venture to question. As long as the trade 
 is profitable, they will do all that is needed, but strong common 
 sense and long-headedness will not accept theories for facts, 
 nor adopt new methods or systems, because they are new, or 
 because they are told to adopt them. The new methods and 
 systems must be proved to be real improvements calculated for 
 certain, to add to their profits, or they will have none of them." 
 Tea on the other hand, is an industry created entirely by 
 English enterprise and capital. The value of the exports 
 amounts now to 5j million Rx. Indian and Ceylon teas have 
 been rap'idly driving the China tea out of the English market 
 as will be seen from the following figures. In 1864 the imports
 
 102 
 
 into England were : China 85-80 and Indian 2*80 ; total 88-60 
 million lb. The imports in 1890 were : China 73-74, Indian 
 101-77, and Ceylon 42-49 ; total 218 million lb. It is stated 
 that the tea from India produces a stronger liquid than that of 
 China, that is, a small quantity of the former is equal for 
 purposes of consumption to a larger quntity of the latter ; and 
 as a high import duty, amounting to nearly 25 per cent, of the 
 value is levied in England on all teas irrespective of their 
 quality, the Indian tea is benefited. The duty which was 6d. 
 per lb. has also been reduced to id. The establishment of 
 collieries in India has been effected in recent years, the out- 
 put of coal in 1889 amounting to 2 million tons and the value 
 •69 million Rx. The average value per ton of Indian coal is 
 3*4 rupees while that of imported coal is 22 '4 rupees, while in 
 point of heating power the latter has an advantage of not more 
 than one-half. As railway communications further develop, 
 India might be expected to use her own coal for manufacturing 
 purposes. In India there were at the end of 1889-90, 114 
 cotton-miUs and 27 jute miUs worked by steam, 315 cotton 
 and jute presses, 51 rice mills, 60 saw mills, 21 breweries, 2 
 woollen mills, 6 silk mills, 3 soap factories, 6 large tanneries, 
 48 iron and brass foundries, 14 large sugar factories, 23 coffee 
 works, 66 cutch and lac factories, 61 oil mills, 41 flour mills, 24 
 ice factories, 23 pottery and tile factories, 15 bone-crushing 
 factories and 34 tobacco and cigar factories, besides a large 
 number of indigo and tea factories worked on indigo and tea 
 plantations. The establishment of these factories affords 
 cogent proof of the fact that India is emancipating herself, 
 as Mr. Wells put it, from her chronic sluggishness and enter- 
 ing on a new era of industrial improvement. 
 
 44. Taxation. — The growth of taxation in this Presidency 
 has next to be considered. The principal sources of revenue 
 are (1) the land tax and provincial rates ; (2) the income-tax ; 
 (3) the salt duties; (4) the excise on spirits and drugs; (5) 
 the customs duties ; (6) the stamp duties ; and (7) fees for 
 the registration of documents. It will be convenient to take 
 each of these sources of revenue and examine to what extent 
 they affect the economic condition of the several classes of the 
 population. 
 
 45. Among these sources of revenue, the land revenue 
 
 is, of course, by far the most important. 
 orrentV^^^"^^ ^"^ There has been much discussion as to 
 
 whether the ryot has a right in the soil 
 and whether the payments made by him fall under the 
 category of tax or of rent. In the opinion of the Famine 
 Commissioners, 1880, the land revenue is a source of income
 
 103 
 
 which in India must be distinguished from taxation properly 
 so called, as by immemorial and unquestioned prescription, 
 the Government is entitled to receive from the occupier of the 
 land whatever it requires of the surplus profit left after 
 defraying the expenses of cultivation ; and consequently land 
 revenue may with more propriety be regarded as a rent paid 
 by a tenant, often a highly favored tenant, to the paramount 
 owner, than as a tax paid by the owner to the State. This 
 extreme view of the rights of the State, which was dissented 
 from by the Madras member of the Famine Commission, is 
 in consonance neither with the conclusions of the best autho- 
 rities, nor with the practice of the English administrators in 
 this Presidency ; and indeed as regards the latter, Madras has 
 been more fortunate than many other parts of India. Sir 
 Thomas Munro, who is generally believed to have denied that 
 the ryot had any right in the soil he cultivated, says : " The 
 ryot of India unites in his own person the characters of 
 laborer, farmer, and landlord ; he receives the wages of the 
 laborer, the profit of the farmer on his stock, and a small 
 surplus from 1 to 20 per cent, on the gross produce as rent, 
 but on an average not more than 5 or 6 per cent." Again in 
 another place, he remarks : " The Collector looks upon the 
 ryot as a mere tenant, and hence he infers that the occupa- 
 tion of land in India may be regulated as in England. But 
 the station of the ryot is not so low as is made by his plan. 
 The ryot is certainly not like the landlord in England, but 
 neither is he like the English tenant. If the name of land- 
 lord belongs to any person in India, it is to the ryot. He 
 divides with Government all the rights of the land. What- 
 ever is not reserved by Government belongs to him. He is» 
 not a tenant at will, or for a term of years. He is not re- 
 movable because another offers more." The fact is, that the 
 relationship between the ryot and Government, or between 
 the ryot and the Zemindar who is the assignee of the rights 
 of Government, is not that of landlord and tenant, but that 
 of partnership.^^ Professor Marshall puts this matter in a 
 
 ** James Mill in writing to a son who was reading in the East India Company's 
 College at Haileybury explained this very clearly : He said, " Do not allow yourself 
 to be taken in, as many people are, by an ambiguity in the word 'property.' English- 
 men in general incline to think that where property is not entire, especially in the land, 
 there is no property. But property may be as Y>^v{ectlj property, when it includes only 
 a part, as when it inclndes the whole. There is no doubt that the ryot has a property 
 in the soil, though it ia a limited property. There is no doubt that the Government has 
 a property in the soil — that also limited — the one limited by the other. It is therefore 
 B, caae (jt joint property. Hence the controversies." As regards the proprietary rights 
 of the ryots in the soil they cultivate, the following authorities may be referred to : 
 Bhaskarappa*;;. The Collector of North Canara, XII Bombay High Court Keporta 
 appendix ; the judgment of the Madras High Court in the Attapadi valley case ; the 
 judgment of the 'Madras High Court in A.S. No. 83 of 1883 ; Sir Charles Turner's
 
 104 
 
 clear light. He says : "In early times, and in backward 
 countries, even in our own age, all rights to property de- 
 pend on general understandings rather than on precise laws 
 and documents. In so far as these understandings can be 
 reduced to definite terms and expressed in the language 'of 
 modern business, they are generally to the following effect : 
 The ownership of land is vested, not in an individual, but 
 in a firm of which one member or group of members is the 
 sleeping partner, while another member or group of members 
 (it may be a whole family) is the working partner. The 
 sleeping partner is sometimes the ruler of the State, some- 
 times he is an individual who inherits what was once the duty 
 of collecting payments due to this ruler from the cultivators 
 of a certain part of the soil, but what, in the course of silent 
 time, has become a right of ownership, more or less definite, 
 more or less absolute. If, as is generally the case, he retains 
 the duty of making certain payments to the ruler of the 
 State, the partnership may be regarded as containing three 
 members, of whom two are sleeping partners. The sleeping 
 partner, or one of them, is generally called the proprietor, or 
 landholder or landlord, or even landowner. But this is an 
 incorrect way of speaking, if he is restrained by law, or by 
 custom which has the force of law, from turning the culti- 
 vator out of his holding, either by an arbitrary enhancement 
 of the payments exacted from him or by any other means. In 
 that case, the property in the land vests, not in him alone, 
 but in the whole of the firm, of which he is only a sleeping 
 partner; the payment made by the working partner is not 
 rent at all, but is that fixed sum, or that part of the gross 
 {proceeds, as the case may be, which the constitution of the 
 firm binds him to pay ; and in so far as custom or law, which 
 regulates these payments, is fixed and unalterable, the theory 
 
 minute on the Bill relating to Malabar Land tenures ; and G.O., dated 2l8t September 
 1882, No. 1008, Revenue. The last paper is most important as containing the declara- 
 tions of Government on the subject of ryot's rights after full inquiry. The conclusions 
 stated by Government are — (1) that the State cannot, without violating the rule and 
 practice dating from time immemorial, assert in this Presidency an exclusive right to 
 minerals in unoccupied lands, but that it is f nlly entitled to a share in such products as 
 in any other produce of the land ; (2) that subject to the payment of a stated proportion 
 of the produce to meet the necessities of the administration, the proprietary right of 
 the ryot in the soil of his holding is absolute and complete ; (3) that he is able to mort- 
 gage, sell, devise or otherwise alienate the land ; (4) that, on these principles, property 
 has been changing hands from time immemorial, and for the Government to put 
 forward a claim now, which has never been asserted and which does not rest in law, 
 practice or precedent, would undoubtedly raise a feeling of distrust and discontent 
 which would take long to allay ; (5) that it would be straining the State's privileges to 
 attach tlie condition of recognition of any exclusive right to minerals on the terms on 
 which lands may bo newly occupied, although in the interests of the general public, it 
 may in particular instances be justifiable to do so, in view to the development of 
 ascertained mineral resources ; and (6) that as regards the vast bulk of the land occupied 
 or likely to be occupied for cultivation, such reservation would be abso'utely objectlesa 
 and would only huve tbs effect of oreatiug widespread distrust iu the miacls of th» peopl9.
 
 105 
 
 of rent has but little direct application." It is the fashion to 
 say that it matters little by what name the payment made by 
 the ryot to Government is called, ^.e., whether it is designated 
 revenue or rent ; but, in practice, the point of view from which 
 the question is regarded involves most important conse- 
 quences. " To the modern statesman," says Lord Salisbury 
 in reference to this question, " the refined distinctions of the 
 economical school are a solid living reality, from which he 
 can as little separate his thoughts as from his mother tongue. 
 To us it may seem indifferent whether we call a payment 
 revenue or rent, so we get the money ; but it is not indifferent 
 by what name we call it within his hearing. If we say that 
 it is rent, he will hold the Government in strictness entitled 
 to all that remains after wages and profits have been paid, 
 and he will do what he can to hasten the advent of the day 
 when the State shall no longer be kept by any weak com- 
 promises from the enjoyment of its undoubted rights. If we 
 persuade him that it is revenue, he will note the vast dispro- 
 portion of its incidence as compared to that of other taxes, 
 and his efforts will tend to remedy the inequality and to lay 
 upon other classes and interests a more equitable share of the 
 public burden. I prefer the latter tendency to the former. 
 So far as it is possible to change the Indian fiscal system, it 
 is desirable that the cultivator should pay a smaller propor- 
 tion of the whole national charge. It is not in itself a thrifty 
 policy to draw the mass of revenue from the rural districts 
 where capital is scarce, sparing the towns where it is often 
 redundant and runs to waste in luxury. The injury is 
 exaggerated in the case of India, where so much of the reve- 
 nue is exported without a direct equivalent." The above 
 views of Lord Salisbury, which seem to me to be perfectly 
 sound, I shall have occasion to refer to again when I have to 
 consider the effect of land settlements. When the relation 
 between the ryot and the Government is regarded as one of 
 partnership, it results that the payment made by the former 
 to the latter is neither rent nor tax but a share of the pro- 
 fits. As the Government, which is the " sleeping partner " 
 according to Professor Marshall's phraseology, has, however, 
 power to assess the profits and determine the portion to be 
 paid to it as its share, the public interests require that the 
 assessment should be made with as much scrupulosity as 
 in the case of a tax to prevent the share of the profits 
 of the " wo7-Jcing partner " or the private owner, being unduly 
 abridged and the incentives to increased production being 
 weaken'ed ; and this object is best attained by regarding the 
 
 14
 
 106 
 
 Government assessment of land as being more in the nature 
 of a tax than a rent. 
 
 46. The subjoined statement shows the 
 Growth of land reve- average land revenue for decennial periods 
 ^'^^' since the beginning of the century : 
 
 Millions Ex. 
 
 Average of 10 years ending 1809-10 ... 3"74 
 
 Do. do. 1819-20 ... 3-74 
 
 Do. do. 1829-30 ... 3*68 
 
 Do. do. 1839-40 ... 3-16 
 
 Do. ^o. 1849-50 ... 3-43 
 
 Do. do. 1859-60 ... 3-66 
 
 Do. do. 1869-70 ... 4-16 
 
 Do. do. 1879-80 ... 4'39 
 
 Do. do. 1889-90 ... 4-81 
 
 1889-90 5-03 
 
 The figures for the first three decades include the proceeds 
 of the moturpha taxes and of the revenue from the tobacco 
 monopoly. Kurnool having been annexed to British terri- 
 tory in 1838, the revenue of that district is not included in 
 the figures of the years previous to 1838. North Canara, on 
 the other hand, was transferred to Bombay in 1862, and the 
 revenue of this district is included in the figures given for 
 the previous years. Making allowances for these circum- 
 stances, it will be seen that during the first 20 years of the 
 century the revenue was nearly 3f millions Ex, when lands 
 were rack-rented, that it then began to decline and fell to 
 3*16 millions in the decade ending 1839-40 owing to the 
 severe agricultural depression which then prevailed, that it 
 took another 20 years to rise to the level at which it was at 
 the beginning of the centm'y, and that since 1859-60 it has 
 been rapidly rising, the increase amounting to 1*15 million Rx 
 or 31 '5 per cent. The rise in the revenue may be due to (1) 
 the extension of the area under cultivation, (2) the extension 
 of the area under irrigation, and (3) the increase in the rates 
 of assessment imposed by the settlement department with re- 
 ference to the increase in the prices of agricultural produce. 
 The following remarks will show to what extent the increase 
 is due to each of the above causes. 
 
 The land revenue consists of two portions, one practically 
 permanent and not liable to enhancement, and the other 
 fluctuating. The first head comprises the peshcush on per- 
 manently-settled estates, and the quit-rents on inam villages 
 and on inam lands found interspersed with ryotwar lands 
 in ryotwar villages. The permanently-settled estates or 
 zemindaris cover an area of 43,000 square miles or nearly
 
 107 
 
 one-third of the whole area of the Presidency. The area 
 under cultivation in the zemindaris was estimated in 1880 at 
 about 5^ millions of acres, or a little more than one-fourth 
 of ryotwar holdings, and the acreage at present is probably 
 sonde what more. The inam areas aggregate nearly 8 million 
 acres, of which the portion actually cultivated may be taken 
 at 5 millions. The land revenue derived from permanently- 
 settled estates is about 50J lakhs of rupees, from inam 
 villages 6^ lakhs, and from minor inams 21-1 lakhs, making 
 a total of 78^ lakhs. The revenue payable to Government 
 on these lands is fixed, except that where unirrigated lands 
 are irrigated by water derived from Government works 
 newly constructed, a water-rate is levied. The water-rate 
 thus levied fluctuates from year to year and may ordinarily 
 be taken at 7-| lakhs of rupees. For the purposes of the 
 assessment of the Local Fund land cess, the rental of 
 zemindari estates has been ascertained to be 161 lakhs of 
 rupees; of inam villages to be 41 J lakhs of rupees; and of 
 minor inams to be 96 lakhs of rupees. The land revenue 
 therefore bears the proportion of one-third, one- sixth and 
 one-fifth, respectively, to the rental of zemindaris, inam 
 villages and minor inams. As regards the inam lands which 
 were held on uncertain tenure, by far the greatest portion of 
 them has been confirmed to the holders in perpetuity with 
 full right of alienation on condition of their paying a light 
 quit-rent. Inam lands held on condition of rendering service 
 to the State have also, in most districts, been enfranchised, 
 that is to say, freed from the condition of service and 
 rendered heritable and transferable property on payment of 
 a quit-rent amounting to five-eighths of the regulated assess- 
 ment. The only additional tax laid on both zemindari and 
 inam lands is the local land cess at 6J per cent, of the 
 assessment for local improvements, which they in common 
 with ryotwar lands are liable to pay. The zemindars are 
 charged with only a portion of the cess at the rate of 3J 
 per cent, on the difference between the assessment paid to 
 them by the ryots and the peshcush paid by the former to 
 Government, while the ryots pay at the rate of 3-g- per cent. 
 on the assessment paid to the zemindars. The zemindari 
 ryots thus pay the cess at only half the rates at which the 
 Government ryots are assessed in consideration of the fact of 
 the land assessment levied by zemindars being much heavier 
 than those of ryotwar lands. The amount of the cess is 12^ 
 lakhs of rupees, while the prices of produce, and, as a conse- 
 quence, Ihe annual money value of the lands have risen by 
 150 per cent*, since 1850.
 
 108 
 
 The ryotwar land revenue, which was 3 crores of rupees 
 in 1852-53, increased to 3*76 crores in 1872-73 and to 4 crores 
 in 1889-90. As already observed, prior to 1850, the land 
 revenue, owing to the agricultural depression and the low 
 prices of the food-grains, pressed with extreme severity on 
 the agricultural classes ; and under the liberal policy which 
 was inaugurated about that time, extensive reductions were 
 made in the land assessments, the remissions granted between 
 1850 and 1858 amounting to 28 lakhs of rupees. Between 
 1858 and 1872-73 further remissions of taxation were made 
 to the extent of 24^ lakhs in districts not brought under 
 the new settlement as shown below ; the abolition of the 
 olungu system in Tan j ore and Tinnevelly districts, 7 lakhs ; 
 the reduction of assessment on unirrigated lands in South 
 Arcot and Guntiir, Rs. 95,000 ; the reduction of assessment 
 of garden lands, 7^ lakhs ; the abolition of the pullary tax in 
 Nellore, Rs. 97,000 ; the reduction of assessment of manavari 
 lands in Chingleput, Rs. 15,000; and the abolition of the 
 tobacco monopoly, 8 lakhs of rupees. On the other hand, 
 the increase of assessment due to the new settlement, not 
 taking into account the local cesses, was, up to 1872-73, 5J 
 lakhs, and from that year up to the end of 1889-90, 7 lakhs, 
 making a total of 12^ lakhs. On the whole, therefore, the 
 net amount of land taxation remitted since 1850 is 40 lakhs. 
 This shows that the increase in the ryotwar land revenue is 
 entirely due to the extension of irrigation and extension of 
 cultivation and not in any degree to the increase of taxation. 
 Out of 1 crore of rupees, by which the ryotwar revenue 
 demand in 1889-90 exceeds the demand in 1852-53, more 
 than 40 lakhs are due to irrigation provided by irrigation 
 works constructed by Government and classed as productive ; 
 irrigation works constructed since 1850, but not classed as 
 productive, have also brought in a considerable revenue, 
 the amount of which is not ascertainable ; and there is the 
 revenue due to the increase in the acreage of holdings, which 
 has risen from less than 13 to 21 millions of acres, or by about 
 60 per cent. As compared with 1852-53, the rate per acre 
 of unirrigated land has fallen from ^^ 2s. 6d. to 25. Of 6?. and 
 of irrigated land from 12s. bd. to 10s. and of land of both 
 descriptions from 4s. 't)d. to 3s. 9^d. 
 
 The provincial rates, which affect ryotwar lands in rural 
 tracts, are (1) the local fund land cess, (2) the village service 
 cess, and (3) the irrigation cess. The last is a voluntary 
 cess of trifling amount paid in a few places to keep up an 
 
 ^ £l is taken as equivalent to Bs. 10,
 
 109 
 
 establishment for the conservancy of, and distribution of 
 water in, irrigation chunnels and may be left out of the 
 calculation. Land cess is levied for the maintenance of 
 roads, bridges, hospitals and other services administered by 
 the Local Fund Boards. The village service cess is utilised 
 for the maintenance of the village establishments and super- 
 sedes in part at least the merahs and grain fees, which, 
 according to the custom of the country, the ryots were 
 bound to pay for the maintenance of village servants. The 
 two cesses on ryotwar lands amount to 52^ lakhs of rupees. 
 The whole amount is not a new charge, as the value of 
 the old merahs customarily paid before the village-cess was 
 introduced and which are now no longer paid must be 
 deducted. The increase of taxation on ryotwar land, taking 
 both land revenue proper and provincial rates together, 
 cannot be more than 10 lakhs of rupees, if even so much. 
 Practically, therefore, the incidence of the land taxes remains 
 the same now as it was in 1850 in nominal money value, 
 while owing to the fall in the purchasing power of money, 
 2-| rupees now being equivalent to 1 rupee before, a ryot has 
 to sell only two-fifths of the crop he would have had to sell 
 formerly to discharge the Government dues. 
 
 47. The considerations referred to above clearly show 
 Pressure of the* land ^^^t the pressurc of the land tax is very 
 tax and selling prices much Icss at prcscut than it was in the 
 °*^^^*^" year 1850, even after making allowance 
 
 for the fact that the area of land actually cultivated was in 
 excess of the recorded area in former years. That the tax is 
 in itself moderate is shown by the high prices obtained for 
 much of the land under cultivation. I have collected and 
 given in the appendix V.-E. (d) such statistics as could be 
 obtained as regards the value of lands in a few districts from 
 the records of the Registration department. In 1830, land 
 had little or no value throughout the greater portion of the 
 Presidency with the exception of the districts of Tanjore, 
 Malabar, South Canara and the river-irrigated portions of 
 Madura and Tinnevelly. In the rich deltas of the Kistna and 
 the Godavari, transfers of land by sale appear to have been 
 almost unknown till about 1850. In 1853 Sir Walter Elliott, 
 the Commissioner of the Northern Circars, reported that in 
 the Kistna district land was generally unsaleable, and that, in 
 the only instances which had come to his notice, the area 
 sold was 15 acres of dry and 56 J acres of wet land, the 
 price obtained being Rs. 203. Again the same oflBcer re- 
 ported in 1854 that the only case of sale of assessed lands
 
 110 
 
 occurred in Guntiir, where 10 acres of dry and 2 acres of 
 wet land yielding a gross outturn of Rs. 55, and bearing 
 an assessment of Rs. 34 fetched a price of Rs. 78. In the 
 dry districts, such as the Ceded Districts, &c., the only 
 lands that had any saleable value were inam lands, and lands 
 irrigated by }3rivate wells or on which cocoanut and areca 
 plantations had been formed, almost the entire value in these 
 cases being due to the capital and labour laid out by the 
 ryots in improving the lands. In the Tanjore district the 
 statistics given in the appendix V.-E. (d 1 and 2) show that the 
 value of lands in most places has risen to not less than ten 
 times what it was in the early years of the century. In the 
 deltas of the Kistna and the Goddvari, lands which were 
 unsaleable have, during the last 30 years, acquired a high 
 value, though in the former district there are still large tracts 
 where, owing to the sparseness of the population, the value 
 has not risen to anything like the height it has attained 
 in Tanjore. As regards the rise in the value of lands in the 
 Coimbatore district, Mr. Nicholson remarks " (1) that whereas 
 up to 1850, or at least in 1839, only about one-eighth of 
 the dry land, three-fourths of the gardens, and one-fourth 
 of the wet land was saleable, in 1884 the bulk of the dry 
 land has a price ranging from As. 4 to Rs. 50 per acre; 
 all gardens are saleable, and are worth from Rs. 50 to 100 
 per acre, inclusive of the well, while the wet land is wholly 
 saleable at an average of from Rs. 250 to Rs. 300; (2) that 
 a very large proportion of the lands bears a rental of one- 
 half of th;^ gross produce, whereas in 1839 a smaller propor- 
 tion bore a rental of one-half the net produce, i.e., after 
 deducting cultivation expenses ; (3) that interest has de- 
 creased, mortgages on landed property being now freely 
 accepted at 9 per cent., whereas in 1839 interest on such 
 transactions was from 12 to 18 per cent, and higher; (4) that 
 trading capital now turns to land as an investment, and is 
 willing to accept from it a return of 6 per cent., whereas in 
 1839 it was declared that trading capital did not invest in 
 land ; (5) that wells have increased from about 22,000 to 
 about 55,000 in actual use, representing capital permanently 
 sunk since 1800 of at least 100 lakhs, besides that sunk in 
 wells not now in use ; (6) that thousands of acres have been 
 turned from dry into wet; (7) that the cultivation of very 
 valuable products, such as sugar-cane, turmeric, cocoanuts, 
 plantains, &c., has largely increased; and (8) that in the 
 recent unprecedented famine (1877-78), it was not t^he ryot 
 class who suffered severely, save only those who depended
 
 Ill 
 
 solely on dry land." All these beneficial results have been 
 produced by the removal of the special tax on garden cultiva- 
 tion in a district which is known to be one of the driest in 
 the Presidency, and in which out of 62 years beginning with 
 1803 and ending with 1865 the season in 9 had been des- 
 cribed as bad, in 40 as unfavourable, and only in 11 as favour- 
 able and in 2 as " bumper." Mr. Nicholson estimates the 
 average value of wet land at Rs. 255 per acre, of dry land at 
 Es. 19 per acre, and of garden land at Rs. 46 per acre. The 
 poorest lands on the margin of cultivation have of course 
 little or no value, and, allowing for this, he puts the average 
 value of dry land at Rs. 12 per acre. The total capitalized 
 value of the lands under occupation he estimates at 6*3 crores 
 of rupees. In the densely populated districts, such as Tan- 
 jore, lands rapidly rose in value when the prices of food 
 grains ruled high between 1860 and 1870 ; since then the rise 
 in value has not been quite so great. In other districts, 
 however, which have been opened up by extension of com- 
 munications, the rise in land values during recent years has 
 been very great. The increase in the value of land of course 
 is to some extent due to the fact of its being a "safe" in- 
 vestment. In the Tanjore district, for instance, persons in- 
 vesting money in land do not expect to get a greater return 
 than 4 or 5 per cent. ; and in South Canara the return is stated 
 to be as low as 3^ per cent. Nevertheless the rise in the 
 price of land is a sure indication of the abundance of circulat- 
 ing capital and of the moderation of the land tax. 
 
 48. The proportion which the land assessment bears to 
 Relation between ^^^ ^®^^ valuc of the lauds is cvcn a better 
 Government assess- gaugo of the prcssure of the land tax than 
 ment and rental. land priccs. Statistics showiug this pro- 
 
 portion for all the districts of the Presidency are not easily 
 procurable. I have, however, obtained the required particu- 
 lars for one district, viz., Coimbatore, from leases registered 
 in 1889, and the results are given in the appendix Y .-E. (e 4). 
 The number of leases examined was 700, of which 270 related 
 to dry lands, 3,084 acres in extent, 301 to garden lands of 
 3,675 acres, and 129 to wet lands of 375 acres. In the case 
 of dry lands, the rent was 3"4 times the Government assess- 
 ment, for garden it was 5*1 times and for wet lands 5 times. 
 Of the extent of land leased out, only in a small proportion of 
 cases are written engagements exchanged, and of such written 
 engagements only a small proportion is registered. More- 
 over it is only the better classes of lands that are leased out. 
 Nevertheless, the figures above given show that the lands 
 have not be^n over-assessed. In the case of dry lands leased
 
 11$ 
 
 out, the average assessment comes to about 1 rupee, while the. 
 average dry assessment of the district is 14 annas 10 pies. 
 The wet lands leased out do not seem to be of exceptionally 
 good quality, for while their average assessment comes to 
 Rs, 6-3-2, the average wet rate for the district is Rs. 7-7-0. 
 The following statement shows that in a considerable number 
 of cases the rental exceeds even ten times the assessment : 
 
 
 
 Description of lands. 
 
 
 Dry. 
 
 Garden. 
 
 Wet. 
 
 Number of 
 
 cases in which the rent stipulated to be paid is less 
 
 
 
 
 
 than twice the Government assessment . . . 
 
 70 
 
 19 
 
 4 
 
 Do. 
 
 do. do. between 3 and 2 ... 
 
 68 
 
 45 
 
 9 
 
 Do. 
 
 do. do. do. 4 and 3 ... 
 
 45 
 
 29 
 
 26 
 
 Do. 
 
 do. do. do. Sand 4 ... 
 
 29 
 
 41 
 
 20 
 
 Do. 
 
 do. do. do. 6 and 5 .-, 
 
 20 
 
 25 
 
 25 
 
 Do. 
 
 do. do. do. 7 and 6 ... 
 
 16 
 
 33 
 
 17 
 
 Do. 
 
 do. do. do. Sand 7 ... 
 
 5 
 
 19 
 
 12 
 
 Do. 
 
 do. do. do. 9 and 8 ... 
 
 3 
 
 18 
 
 9 
 
 Do. 
 
 do. do. do. 10 and 9 ... 
 
 5 
 
 11 
 
 
 Do. 
 
 do. do. do. 15 and 10 ... 
 
 9 
 
 43 
 
 6 
 
 Do. 
 
 do. do. over 15 ... 
 
 Total ... 
 
 
 18 
 
 1 
 
 270 
 
 301 
 
 129 
 
 Note. — In all these cases the lessor pays the Government assessment out of the 
 rent stipulated. 
 
 49. The proportion of Government assessment to the 
 Ratio of Government g^'oss producc was estimated by the Famine 
 assessment to gross pro- Commissiou at 6*3 per ccut., taking the 
 ^'^^^' value of the gross outturn at 50 crores 
 
 of rupees, and the land revenue at 3*16 crores. They have 
 excluded from land revenue 1*37 crores as being water 
 charge and not forming part of land tax proper. Including 
 this amount, the proportion is 9*2 per cent. In these calcu- 
 lations, however, the outturn of favourably assessed inam 
 lands and of zemindari lands, which now pay to Government 
 a smaller revenue than ryotwar lands, has been included. 
 Taking the ryotwar lands alone, the average rate of assess- 
 ment for wet lands is Es. 5 per acre and for dry lands 1 rupee 
 per acre, and these rates are between one-fourth and one-fifth 
 and one^fourth and one- sixth, respectively, of the gross out- 
 turn according to settlement calculations after deducting 
 from the average outturn 16f per cent, in the case of wet and 
 25 per cent, in the case of dry lands as allowance for vicis- 
 situdes of season. The average outturn of lands is, ho xv ever, 
 extremely difficult to calculate on account of the witie variety 
 of soils and of seasons, the produce even in a email cycle of
 
 113 
 
 years varying from almost nothing to a bumper crop; but 
 though, as I shall have hereafter occasion to show, I do not 
 believe that the values assigned by the settlement department 
 to the various factors which enter into the calculations from 
 which the Government assessment is deduced are even ap- 
 proximately correct, there is no reason to suppose that the 
 proportion of the assessment of ryotwar lands to the gross 
 produce is higher than those above given. In the ^^ case of 
 lands in the poorer dry districts it is very much less. 
 
 50. The Income'tax. — The revenue derived from this 
 LAKHS, source amounts to 18^ lakhs 
 
 Tax on salaries and pensions ... 6i of rupCCS. The portiou of the 
 
 Tax on Companies ^ r ^ r 
 
 Tax on interest on Government taX relating tO tradcS IS UOt a 
 
 TaronptofitBoftrades;&c. :;■. Ill ucw ouc, but is the represcnt- 
 
 — ative of the old moturpha, some 
 
 — account of which has already 
 been given. Unpopular as the income-tax is, it is nothing 
 so unbearable as the old all-embracing moturpha, which, in 
 an ably drawn up petition, presented by the Madras Native 
 Association to the Committee of the House of Commons, 
 appointed to enquire into Indian affairs in 1853, is described 
 as **a tax on trades and occupations; embracing weavers, 
 carpenters, all workers in metals, all salesmen, whether 
 possessing shops, which are also taxed separately, or vending 
 by the roadside, &c., &c., some paying impost on their tools, 
 others for permission to sell, extending- to the most trifling 
 articles of trade, and the cheapest tools the mechanic can 
 employ ; the cost of which is frequently exceeded six times 
 over by the moturpha, under which the use of them is per- 
 mitted." The tax, according to Mr. Dykes, the Collector of 
 
 " Of course the small proportion of the assessment to the gross produce does 
 not necessarily show that the assessment is light as there is a vast extent of poor 
 lands in arid tracts, which are on the margin of cultivation. The only use of these 
 calculations is to show that the land revenue now taken by the British Government 
 does not exceed much, if at all, the one-sixth share prescribed by Menu, the Hindu law- 
 giver, and which I suppose must have had reference to unirrigated lands and not 
 to lands for which irrigation is provided by expensive irrigation-works constructed and 
 maintained by Government. The statements of Sir Thomas Munro and Mr. Russell 
 referred to in a previous part of this memorandum show that the ryots in former days 
 paid between 45 and 60 per cent, of tho crop to Government, and that the Government 
 share was further enhanced by the unduly high money valuation put ou the crop. The 
 ryots, on the other hand, cheated the Government by holding more lands than they 
 paid for, and further the large area of inam lands enabled the better classes of ryots to 
 exist, it was a case of perpetual struggle between the Government oflBcers and the 
 ryots, the former by means of forced cultivation and torture trying to extort the reve- 
 nue which was impossible of realization except occasionally and in a spasmodic way, 
 and the latter by practising all manner of deception and by concealment of property 
 trying to evade payment of Government dues. Even Sir Thomas Munro, whose one 
 object was to*give saleable value to lands, and encourage enterprise in the ryots, fouiid 
 it necessary to prohibit the cultivation of in^m lands to the neglect of lands which paid 
 the fall assessment. 
 
 15
 
 114 
 
 '?■■ 
 
 Salem, who was examined by the Select Committee, varied in 
 each district and in every village, and its assessment was, in 
 the highest degree, arbitrary. The mode of assessment was 
 often as follows : A man's father had paid the tax and the 
 son was generally assessed at the same amount. If the lat'ter 
 was considered to be an energetic man and was believed to 
 drive a better trade, the matter was reported to the Collector 
 the next time he visited that part of the district. If the 
 trader was a man of any sense, I use Mr. Dykes' words, he 
 bought off the village authorities and did not get his assess- 
 ment raised, the extent of his dealings not being reported. 
 Sir Thomas Munro mentions that in the Bellary district, the 
 tax amounted to between 15 and 20 per cent, of the income 
 in some taluks and little or nothing in others, the reason 
 for indulgent treatment in the latter cases being that the 
 merchants were obliged to furnish at a low rate whatever 
 articles were required for the public service, to take the 
 Sirkar share of the crops, damaged stores, &c., at 10 per 
 cent, above the market rate, and to pay " occasional " contri- 
 butions. Sir Thomas Munro proposed to impose a uniform 
 tax of 15 per cent, throughout the district. In one village 
 in the Coimbatore district barbers, carpenters and black- 
 smiths paid Ks. 2-5-8 each; pariah labourers paid As. 14-2 
 and chucklers paid each Rs. 2-5-8. The Public Works Com- 
 missioners of 1852 give some interesting statistics regarding 
 the oppressive character of this tax. They state, " In 
 connection with the important object of increasing the class 
 of consumers not directly concerned with the growth of food, 
 we cannot but observe that the moturpha or tax on trades- 
 men and artizans appears singularly objectionable. In a 
 country where the classes engaged in trade, manufactures 
 and the useful arts are extremely few in number compared 
 with those occupied in agriculture, the disfavour of the former 
 branches of industry is increased by a special impost levied 
 on those employed in them. It amounts in all to £116,000 
 and this trifling sum is collected from no fewer than 994,224 
 individuals being only 1 ^ R. or 2s. 4d. from each contri- 
 butor." The Commissioners go on to remark "a large part 
 of the moturpha is paid by the weavers and forms an addition 
 to the difl5.culties with which they have to contend in com- 
 peting with the English manufacturer. In this case too, the 
 tax is more than usually inquisitorial, as the amount varies 
 with the number of looms employed by each payer ; houses 
 are frequently entered in order to discover concealed looms, 
 as the Indian loom is easily dismantled and put away." The 
 grossly unequal incidence of the tax in the seveVal districts
 
 115 
 
 will be seen from the subjoined table. The number of payees 
 of income tax in the districts referred to and the incidence 
 per head are added for purposes of comparison : 
 
 Names of dis- 
 tricts. 
 
 Number 
 
 of 
 
 payees of 
 
 moturpha 
 
 tax. 
 
 Amount 
 paid. 
 
 Rate per 
 head of 
 payee. 
 
 Number 
 
 of 
 
 payees of 
 
 income 
 
 tax, Part 
 
 IV. 
 
 Amount 
 paid. 
 
 Rate per 
 
 head of 
 
 payee 
 
 
 RS. 
 
 A. 
 
 p. 
 
 25 
 
 V 
 
 3 
 
 20 
 
 14 
 
 9 
 
 19 
 
 4 
 
 2 
 
 17 
 
 7 11 1 
 
 22 
 
 5 
 
 
 
 23 
 
 13 
 
 9 
 
 Tan j ore .. 
 Bellary ... 
 Trichinopoly 
 Kurnool 
 Canara ... 
 Malabar 
 
 
 RS. 
 
 ES. A. P. 
 
 
 ■ ES. 
 
 232,321 
 
 43,313 
 
 2 111 
 
 2,819 
 
 71,746 
 
 145,300 
 
 2,72,576 
 
 1 14 
 
 2,889 
 
 60,446 
 
 5,834 
 
 6,525 
 
 1 1 lOf 
 
 973 
 
 18,742 
 
 12,104 
 
 55,992 
 
 4 10 
 
 1,620 
 
 28,338 
 
 28,301 
 
 16,567 
 
 9 41 
 
 1,077 
 
 24,033 
 
 211,152 
 
 1,15,742 
 
 8 9^ 
 
 2,015 
 
 48,078 
 
 The number of payees of the income-tax throughout the 
 Presidency in 1890-91 was 56,809 and the average assess- 
 ment, Rs. 28-10-6 per head. Besides the income-tax, a tax 
 on arts, trades and professions is levied in Municipal towns ; 
 the amount collected in 1889-90 was Rs. 1,80,557, and the 
 number of payees 43,932, and the average payment Rs. 4-1-9 
 per head. The exemption of incomes below Rs. 500 from 
 assessment has minimized much of the inquisition and op- 
 pression incidental to the levy of a tax of this kind, and if 
 the state of the finances permit, the limit of exemption may 
 be extended to Rs. 1,000. If this were done, the revenue 
 from this tax would be reduced by a fourth. This is the only 
 direct tax paid by the official, professional and the trading 
 classes who are bound to contribute their fair share to the 
 public burdens, and it is therefore quite sound in principle. 
 There is no difficulty in assessing official salaries and profes- 
 sional incomes ; and as regards trade profits, the exemption 
 of incomes below Rs. 500 secures to a great extent from 
 oppression the classes least able to protect themselves. The 
 people are becoming accustomed to the tax, and, though the 
 revenue derived is small, it is collected without much addi- 
 tional cost, and if, as I believe it will, the country makes a 
 rapid advance in industrial development, this source of revenue 
 might in course of time, be expected to become important. 
 It must, therefore, be once for allrecognized as permanently 
 incorporated into the system of taxation of the Empire and 
 not be periodically threatened with extinction. 
 
 51. The Government salt monopoly in this Presidency 
 „ ,^ ^ was created in 1805. Previously under 
 
 Salt Revenue. i • r>. . ■ i c ^ sr 
 
 ' native (rovernments the manuiacture or 
 
 salt was f&rmed out in some places, but on no defined system y 
 and in other places various persons had been allowed th&
 
 116 
 
 privilege of manufacture without any payment. In tlie 
 Noi'thern Circars it was the policy of the Muhammadan Gov- 
 ernment to limit the manufacture of salt to its own havelly 
 or home farm lands, and to prohibit the making of salt in 
 Zemindaris. At Nowpada in 1787 the price of salt was Rs. 
 40 per garce of 120 maunds (1 maund=82flb.). The price 
 of salt inland was four and often eight times the price on 
 the coast varying according to the distance from the coast. 
 Before the Government monopoly came into force, the price of 
 salt at Calicut in 1800 was, according to Buchanan, 4 annas a 
 maund. In Mangalore, Bombay salt was sold for less than 
 4 annas and Goa salt less than 3 annas a maund. At Tai- 
 kulam (near Bangalore) the price of earth salt was 10 annas 
 
 8 pies per maund, and of 
 Madras sea salt 2 rupees or 
 three times as much. After 
 the creation of the Govern- 
 ment monopoly the price at 
 the Government factories was 
 fixed * at 9J annas at first, 
 and it has been continually 
 enhanced till it amounts now 
 to 2 rupees 11 annas. Till 
 1882, the manufacture of salt 
 except on Government account 
 was prohibited. Between 1882 
 and 1886, the system of manu- 
 facture and sale of salt by 
 private individuals on payment 
 of an excise duty was substi- 
 tuted for the Government mono- 
 poly system throughout the Presidency, with the exception 
 of half a dozen places where the old system is still main- 
 tained. The growth of the salt revenue since the beginning 
 of the century will be seen from the figures given below : 
 
 * The Government mon 
 
 opoly price 
 
 of salt fixed from time to time has been 
 
 as follows : 
 
 
 ] 
 
 'er maund. 
 
 
 ES. .A.. P. 
 
 Trom 1805 to Nov. 1809 ... 
 
 9 4 
 
 Do. Nov. 1809 to 1820 ... 
 
 14 
 
 Do. 1820 to Jnne 1828 ... 
 
 9 4 
 
 Do. June 1828 to Slst 
 
 
 March 1844 
 
 14 
 
 Do. April 1844 to July 
 
 
 1859 
 
 10 
 
 Do. Angust 1869 to April 
 
 
 1861 
 
 12 
 
 Do. April 1861 to Jane 
 
 
 1861 
 
 16 
 
 Do. June 1861 to 1865-66. 
 
 18 
 
 Do. 1865-66 to Oct. 1869. 
 
 1 11 
 
 Do. Oct. 1869 to Dec. 
 
 
 1877 
 
 2 
 
 Do. Dec. 1877 to March 
 
 
 1882 
 
 2 11 
 
 Do. March 1882 to Janu- 
 
 
 ary 1888 
 
 2 3 
 
 Do. January 1888 to date. 
 
 2 11 
 
 
 
 Quantity 
 
 
 Millions Ex. 
 
 exported 
 
 and sold 
 
 Millions lb. 
 
 Average of ten years ending 1809-10 
 
 •13 
 
 360 
 
 Do. do. 1819-20 
 
 •33 
 
 322 
 
 Do. do. 1829-30 
 
 •36 
 
 442 
 
 Do. do. 1839-40 
 
 •38 
 
 401 
 
 Do. do. 1849-60 
 
 •44 
 
 408 
 
 Do. do. 1859-60 
 
 •53 
 
 476 
 
 Do. do. 1869-70 
 
 '99 
 
 565 
 
 Do. do. 1879-80 
 
 133 
 
 526 
 
 Do. do. 1889-90 
 
 1-50 - 
 
 537 
 
 For the year 1889-90 
 
 1-76 , 
 
 579
 
 117 
 
 Since 1820, the consumption of salt cannot be said to 
 have increased as much as might be expected from the 
 increase of population, the suppression of illicit manufacture 
 and smuggling and the development of communications, 
 though, of course, owing to the area supplied with Madras 
 salt, which competes with that of Bombay, having under the 
 ordinary conditions of trade changed from time to time, the 
 figures above given for different years will have to be cor- 
 rected to admit of their being compared with one another. 
 The development of railways and the fall in the purchasing 
 power of money have also doubtless made the tax less burden- 
 some in proportion to the increase in the money rates of duty 
 than it would otherwise have been in the inland districts. 
 Thus in 1814, when the monopoly price of salt at the coast 
 was 14 annas a maund, Madras sea salt was sold in Bellary 
 at Rs. 2-8-0 per maund ; and in 1850 when the Government 
 price was Re. 1, the price in Bellary was a little less than 
 Rs. 2-8-0. The prices in the Cuddapah, Bellary, Kurnool, 
 Coimbatore and Salem districts in 1862, 1873 and 1883 when 
 the monopoly prices at the factories were Rs. 1-8-0, Rs. 2, 
 and Rs. 2-3-0, compare as follows : 
 
 
 Seers of 80 tolas per rupee. 
 
 
 1862. 
 
 1873. 
 
 1883. 
 
 Cuddapah 
 
 Bellary 
 
 Kurnool 
 
 Coimbatore 
 
 Salem 
 
 16-61 
 12-54 
 15-00 
 14-04 
 18-86 
 
 18-2 
 
 1711 
 
 16-5 
 
 15-95 
 
 15-61 
 
 16-6 
 15-5 
 14-2 
 14-5 
 16'0 
 
 There can, however, be little doubt that the salt tax 
 presses with severity on the poorer classes, especially on the 
 sea coast, where the duty has been enhanced in recent years, 
 and large preventive establishments have at the same time 
 been employed to put down illicit manufacture and smuggling* 
 There has been much discussion as regards the soundness of 
 the policy of taxing a necessary of life like salt. The Duke 
 of Argyle, the Secretary of State for India, said in 1869 : 
 "On all grounds of general principle, salt is a perfectly 
 legitimate subject of taxation. It is impossible to reach the 
 masses of the people by direct taxes ; if they are to contribute 
 at all to the expenditure of the State, it must be through 
 taxes levied upon some articles of universal consumption. If 
 such taxes are fairly adjusted, a large t-evenue can thus be 
 liaised, not only with less consciousness on the part of the 
 people, but t^ith less real hardship on them than in any other
 
 118 
 
 way whatever. There is no other article in India answering 
 this description upon which any tax is levied. It appears to 
 be the only one which at present in that country can occupy 
 the place which is held in our own fiscal system by the great 
 articles of consumption from which a large part of the impe- 
 rial revenue is derived. I am of opinion that the salt tax in 
 India must continue to be regarded as a legitimate important 
 branch of the public revenue. It is the duty, however, of the 
 Government to see that such taxes are not so heavy as to 
 bear unjustly on the poor by amounting to a large percentage 
 on their necessary expenditure." That the poorer classes 
 should contribute their quota to the revenue of the country 
 may be fully admitted, but the Salt tax is about the worst 
 means which can be employed to draw contributions from 
 them, and nothing but the direst necessity can, in a country 
 like India, justify resort to taxation of this kind. The tax, 
 taking the consumption per head in this Presidency at 16 lb. 
 per annum, amounts to from 2^ to 5 per cent, of the income 
 of a poor family, which is barely sufficient in many cases for 
 subsistence. The diet of the poorer classes is such that they 
 have to use a much larger quantity of salt than the richer 
 classes who use considerable quantities of sugar and of vege- 
 tables containing salt. It has been calculated that the quantity 
 of salt required by a labouring man in this Presidency is 
 double the quantity required by a labouring man in Northern 
 India, part of whose diet consists of wheat ; and the equal- 
 ization of the salt duties throughout India has really had the 
 effect of enhancing the duty on salt to persons who require 
 salt to a large extent and of diminishing it to persons who 
 require salt to a much smaller extent. The greatest objection 
 to the salt tax is, however, the large establishments at heavy 
 cost which it is necessary to maintain to protect the revenue. 
 The strength of the Police force employed throughout the 
 Presidency for the prevention and detection of crime against 
 life and property is 22,668 and the cost 36^ lakhs of rupees ; 
 while the force employed for the protection of the salt and 
 abkdri revenues, that is, for the purpose of preventing people 
 from doing what, but for these taxes, would be innocent 
 and even meritorious, is 8,606, the cost being IS^ lakhs of 
 rupees. This multiplication of Government establishments 
 of a semi-police character with none of the responsibilities of 
 the regular police force is to my mind a serious evil. The 
 tendency" of the Salt Department, as indeed of all depart- 
 
 ^' The Salt Department has of late years recommended a reversion to the old 
 Inonopoly system of manufacture and sale on behalf of Government and this view has 
 been urged strongly in the Administration Report of the department for 1890«91.
 
 119 
 
 ments, is naturally enoiigli to strengthen its own liandSj 
 irrespective of other considerations, for the purpose of pro- 
 tecting with theoretic completeness the revenue which it is 
 charged with the duty of collecting, and it is, therefore, a 
 matter for particular satisfaction that the Government of 
 Madras in 1889, when the salt law was revised, resisted the 
 attempt made by this department to have it declared by law 
 that any earth in which salt might enter in ever so small 
 quantities was to be regarded as contraband " salt," and any 
 dealing with such earth including mere collection, as " illicit 
 manufacture," even in places where there is likely to be no 
 appreciable danger to the revenue. A further objection to 
 the salt tax is, that it has rendered the suppression of the 
 manufacture of earth salt in various places a necessity, thus 
 preventing the utilization of natural resources, and has inter- 
 fered with the development of the saltpetre industry and the 
 manufacture of glass, salt being the chief material in alkali, 
 and alkali in glass. In the Ceded Districts and Kurnool 
 alone, manufacture of earth salt amounting to 5 lakhs of 
 maunds or nearly 6 per cent, of the entire salt production in 
 the country was suppressed. The salt manufactured was 
 perfectly wholesome and considerable quantities of it used to 
 be given to cattle. This practice has now entirely ceased. 
 The effect of the tax on public health ^^ is very prejudicial. 
 
 The chief grounds for the view are, that the slight enhancement in the price of salt to 
 the consumer in recent years is the result of the excise system, that if Government 
 sold the salt to the public they could control the price so as to reduce it to a lower level 
 than that at which it is now, and that it is possible for Government to regulate 
 production with reference to the varying conditions of trade without the help of 
 natural prices to guide itself by. In a note V.-E. (f) appended to this memorandum, I 
 have endeavoured to show that these expectations are illasory and that it would be an 
 error for the Government to undertake the responsibility of regulating production with- 
 out any adequate means of discharging it and without leaving it to private trade to 
 adjust supplies to demand. The evils of concentrating all power in the hands of a 
 Government department constitute also an important consideration which ought not 
 to be overlooked. 
 
 *® In England in the first quarter of the century a duty of £30 per ton (equal to £1 
 a maiind) was levied on salt and the consumption per head was only 16 lb. The price 
 of salt was then £32 per ton. No duty is now levied and the price is 12s. per ton. The 
 consumption per head is 72 lb., of which it is calculated that 40 lb. are consumed for 
 co«)king and condiment, the rest being used for chemicals, manure, &c. Mr. Mulhall 
 states that reduced death-rate and higher efficiency of workmen are the results of the 
 greater consumption of salt. As regards the Indian salt tax, it must be remembered 
 that the poorer classes, who purchase salt required for consumption for a pie or two 
 every day, really pay for the article twice as much (if not more) as the rich who 
 purchase in much larger quantities. The following remarks of the Dnke of Argyle 
 must also be borne in mind. He said, " I observe that several of those officers whose 
 opinions on this question have been given in the papers before me, found that opinion 
 upon what they have heard, in the way of complaint among the native population ; but 
 this is a very unsafe ground of judgment ; it is one of the great advantages of indirect 
 taxation that it is so mixed up with the other elements of price that it is paid without 
 observation Iry the consumers. Even at home, where the people are so much more 
 generally educated, and more accustomed to political reasoning, the heavy indirect 
 taxes formerly leried upon the great articles of consumption were seldom complained
 
 120 
 
 and it seems to me to be a matter for serious consideration 
 whether this tax should be maintained at its present high 
 level, when so much attention is now being devoted to the 
 improvement of the sanitation of the country and the health 
 of the population. I would therefore venture respectfully to 
 suggest that the gradual reduction and eventual abolition 
 of this tax should be pressed on the attention of the Govern- 
 ment of India, a tax on the consumption of tobacco being if 
 necessary imposed as a substitute. A tax on tobacco man- 
 aged under a system like that in force in France will be 
 liable to none of the objections urged against the tax on 
 salt. The plant can grow only on particular soils and requires 
 careful cultivation ; and it will not therefore be necessary to 
 employ as costly preventive establishments for the protection 
 of a tax on tobacco as it is in the case of salt which forms 
 spontaneously in many places on the coast. Any quantity 
 of excellent tobacco might be grown on the lunkas or islands 
 in the Goddvari and Kistna rivers which are at the disposal 
 of Government and leased out annually for cultivation. 
 Tobacco is not a bulky article like salt, does not waste in 
 being carried inland or cost much for carriage. According 
 ♦ to one estimate the value of the tobacco produced and con- 
 sumed in the country is 6 millions Rx. and according to 
 another it is 2| millions. Taking the lower figure, a tax 
 amounting to 300 per cent."^^ on the cost price of the tobacco 
 consumed will yield the revenue now derived from salt. 
 Tobacco is not a necessary of life, at all events to such an 
 extent as salt, and a large proportion of the tax will be con- 
 tributed by the poorest classes, who it is considered should 
 be called upon to bear their share of the public burdens. 
 
 52. The receipts from this source consist of the revenue 
 
 derived from (1) country spirits ; (2) toddy 
 
 ^J^^^^^°^ spirits and ^j. fermented palm juice; (3) spirits and 
 
 fermented liquors imported or made in the 
 country according to the European methods ; and (4) opium. 
 The abkari or revenue derived from intoxicating liquors is 
 an ancient one in this Presidency. Tavernier mentions that 
 the King of Golgonda derived a very large revenue from the 
 
 of by the poor ; they were not themselves conscious how severely they were affected 
 by those taxes, and how much more of the articles they wonld consume if the duties 
 were lower. But while this peculiarity of indirect taxation makes it a most convenient 
 instrument of finance, it throws additional responsibility upon all Governments which 
 resort to it to bring the most enlightened consideration to bear upon the adjustment of 
 taxes, which may really be very heavy and unjust, without the fact being perceived or 
 understood by those on whom they fall." 
 
 " In France the cost price of 1 lb. of tobacco appears to be Gd. and the tax levied ia 
 44d. or more than 70O per cent, of the cost price.
 
 121 
 
 consumption of toddy (fermented palm juice), notwithstand- 
 ing that the use of liquors was strictly forbidden by the 
 Muhammadan religion. Among the Hindus, drinking ap- 
 pears to have been general among the lower classes of the 
 population and especially the aboriginal tribes from the 
 earliest times. In a letter, written in 1683, by Father John 
 DeBritto, of the Madura Jesuit Mission, to the General of 
 the Society at Rome, he states : " The King of Marava 
 encamped with his army, offered the wonted sacrifice to the 
 mother of the gods and did not fail, according to his custom, 
 to satisfy his devotion heartily with the liquor of the palm, 
 which he styled piously the milk of the goddess. It must 
 be observed that the Maravars do not think themselves 
 bound to keep the law which so sternly forbids the nobler 
 castes the use of intoxicating liquor. So they have taken 
 care to dignify in name this liquor which the other castes call 
 the devil's drink (petannir)." Tippu Sultan endeavoured to 
 carry out the injunctions of the Muhammadan religion by 
 issuing an order to the effect that all the palm trees within 
 his dominions should be cut down. The order was obeyed 
 only in the neighbourhood of his capital. No special mea- 
 sures were taken by the English Government until about 
 1870 to check the consumption of liquors beyond farming out 
 places of sale. Since then the liquor traffic has been brought 
 under regulation, and consumption checked by the gradual 
 enhancement of duty levied both on liquors manufactured 
 in the country and imported from abroad. A detailed 
 account of the various measures adopted for this purpose 
 and of the success which has attended them is given in a 
 note printed as appendix Y.-E. (g) to this memorandum, and 
 it is unnecessary to repeat here what is there fully stated. 
 The facts and statistics given in the note will show beyond 
 doubt that the allegations, sometimes made, to the effect that 
 drunkenness is spreading both among the higher and the 
 lower classes, and that the Government is directly interested 
 in extending the consumption and not in checking it, are 
 entirely untrue, so far at all events as this Presidency is 
 concerned. As a matter of fact, the quantity of country 
 liquor now consumed is about 5 per cent, more than what it 
 was in 1875 as shown by the returns of liquor which has paid 
 excise duty, while the population has increased by about 10 
 per cent. The real diminution in consumption is very much 
 more than this, for there was no special preventive agency 
 employed prior to 1884 to check illicit consumption which 
 was then very prevalent. In Malabar, for instance, which is 
 ^uU of palm groves, the consumption of liquor was formerly
 
 122 
 
 practically unregulated. The stringent measures adopted in 
 recent years for concentrating distillation of liquors in a few 
 central places and for limiting sales to licensed places have 
 increased the price of liquor and reduced the consumption so 
 much, that the complaint is now often made that the pooVer 
 classes suffer hardship in being deprived of toddy which, 
 though an intoxicant, is believed, to some extent, to be a 
 substitute for food. The number of licensed places for the 
 sale of liquors, which had to be kept at a high level at the 
 outset with a view to take away the inducements for illicit 
 traffic, has since been enormously reduced. All these measures 
 were inaugurated long before Mr. Caine interested himself 
 in the Indian abkari question, though the credit certainly 
 belongs to him of not allowing the Government to relax its 
 efforts in this direction. That the consumption of liquor can 
 be regulated by increasing or diminishing the duty levied 
 thereon is shown by the fact that it increases in prosperous 
 years and diminishes in years of scarcity. The impression 
 that drunkenness is spreading among the higher classes is 
 also, to a great extent, unfounded. It is true that among the 
 educated classes there is now less religious scruple than 
 formerly in taking liquor under medical advice, when there 
 is absolute necessity for doing so, but drunkenness is not 
 considered among these classes less disgraceful than for- 
 merly, and the number of persons addicted to drinking is 
 exceedingly small and has shown no tendency to increase 
 in recent years. The returns of imported liquors show that 
 the imports of spirits and wines have greatly fallen off dur- 
 ing the last fifteen or twenty years. The imports of beer 
 have, on the other hand, very considerably increased. Beer, 
 however, is drunk by Europeans and Eurasians, and by the 
 lower classes of natives on the Nilgiri hills, where it is super- 
 seding country spirit, the price of which has very much risen 
 on account of the heavy duty levied on it. The duty on im- 
 ported tmd country-made beer in proportion to its alcoholic 
 strength is much lighter than that on spirits or even toddy, 
 and it is very desirable that it should be'^'^ raised. Mr. Caine 
 would do a real service if he could induce the Home Govern- 
 ment to consent to an enhancement of the import duty on 
 beer, and tJie enhancement of the excise duty will follow as a 
 matter of course. 
 
 •" The excise duty on beer in England is 6s. 3d. a barrel or a little over 2d. a gallon. 
 The excise and import duty on beer in India is 1 anna a gallon. Beer contains about 
 8 por cent, alcohol, anl, if it were taxed at the same rate as spii-it, viz , Es. G per 
 gallon of proof spirit, the duty would be nearly 1 rupee. A duty of 4 annas to begin 
 with ^vill not be unsuitable. Toddy, under the tree tax system, pays a higher duty 
 than beer.
 
 i2£( 
 
 The sale of opium -was, till 1880, unregulated, chiefly 
 because it was not generally consumed except for medicinal 
 purposes in the greater portion of the Presidency. , Its use, 
 however, was all along pretty general in the hill tracts of the 
 four northern districts and on the Nilgiris, the drug being 
 considered to be a prophylactic against malarial fever. The 
 poppy plant used to be cultivated, to a small extent, in the 
 hill tracts, but the cultivation has been prohibited since 
 1880. As now a duty is levied on the transport and retail 
 sale of opium in addition to the excise duty, the price of the 
 drug has been considerably enhanced and its consumption 
 has been much restricted. The total quantity consumed 
 throughout the Presidency is only 77,000 lb., of which 
 68,000 lb. forms the consumption of the four northern 
 districts. Of the total number of shops licensed, viz., 1,050, 
 no less than 716 are situated within these districts. 
 
 The total revenue from the excise on spirits and drugs 
 since the beginning of the century has been as follows : 
 
 Million Rx. 
 
 Average of ten years ending 1809-10 ... •06 
 
 Do. 
 
 do. 
 
 1819-20 
 
 •12 
 
 Do. 
 
 do. 
 
 1829-30 
 
 •15 
 
 Do. 
 
 do. 
 
 1839-40 
 
 •17 
 
 Do. 
 
 do. 
 
 1849-50 
 
 •22 
 
 Do. 
 
 do. 
 
 1859-60 
 
 •26 
 
 Do. 
 
 do. 
 
 1869-70 
 
 •42 
 
 Do. 
 
 do. 
 
 1879-80 
 
 •59 
 
 Do. 
 
 do. 
 
 1839-90 
 
 •83 
 
 In 1889-90 .. 
 
 • • • • 
 
 • • • •• • 
 
 ... 114 
 
 It will be seen thab the revenue has risen enormously 
 especially during the last decade, the causes for the increase 
 being, as already explained, not any extension of consumption 
 but the enhancement of taxation. The excise on intoxicating 
 liquors and drugs, from an economic point of view, is a 
 very desirable form of taxation, for whereas all taxes are 
 objectionable, because they restrict production and consump- 
 tion, the objection does not apply to this tax, the restriction 
 of consumption being the very object aimed at in regulating 
 the traffic and the revenue derived being obtained, as it were, 
 incidentally and not being in itself the object. To some 
 extent,^^ the increase in the revenue is an index to the 
 
 ^^ The total revenue in this Presidency from excise is 1"2 million Ex. and the 
 total expenditure on drinking may be taken at about twice that sum or 2"4 million Rx. 
 In England the expenditure on drink is enormous, being estimated at 180 milliona 
 sterling. The consumption per head is '96 gallon of spirit, '36 gallon of wines and 26'80 
 gallon of Veer. In this Presidency the consumption per head may be roughly estimated 
 as follows : Spirit "044 gallon ; wines '0001 gallon ; toddy '25 gallon ; beer -025 gallon. 
 In the estimate given above imported liquors are assumed to have been consumed 
 within the Presidency, whereas large quantities of them ar^ exported to Native States,
 
 124 
 
 improved means, though not the improved education, of tte 
 working classes, from which it is almost entirely drawn. It 
 seems to me, therefore, that it is right and proper that this 
 revenue should be entirely at the disposal of the local Govern- 
 ment in view to its being devoted to the amelioration 'of 
 the moral and intellectual condition of the classes to whose 
 Ignorance and improvidence it owes its existence. Under 
 present arrangements, three-fourths of the revenue is taken 
 by the Government of India for imperial purposes, and this, 
 I venture to submit, is not as it should be. 
 
 53. The fluctuations in the Customs revenue of the Presi- 
 
 Customs revenue. 
 
 have been as 
 
 Ui--L\-y K/i^tl J.J.AXJ.JIXJ 
 
 5 follows : 
 
 Q \J±. Ul-H^ V>\.>JJ.U 
 
 
 
 
 
 Ex. millions. 
 
 Average of ten years ending 
 
 1809-10 
 
 •34 
 
 Do. 
 
 do. 
 
 
 1819-20 
 
 •49 
 
 Do. 
 
 do. 
 
 
 1829-30 
 
 •58 
 
 Do. 
 
 do. 
 
 
 1839-40 
 
 •43 
 
 Do. 
 
 do. 
 
 
 1849-50 
 
 •25 
 
 Do. 
 
 do. 
 
 
 1859-60 
 
 •14 
 
 Do. 
 
 do. 
 
 
 1869-70 
 
 •24 
 
 Do. 
 
 do. 
 
 
 1879-80 
 
 •28 
 
 Do. 
 
 do. 
 
 
 1889-90 
 
 •15 
 
 In 1889-90 
 
 • • « 
 
 • •• 
 
 • . • 
 
 •18 
 
 The decline in the revenue of the later years as compared 
 with the revenue of the earlier years of the century is the 
 result of the policy of freeing trade and industries from all 
 obstacles calculated to impede their natural growth and of 
 leaving them to their unfettered development, which, under 
 the impulse of the free trade principles adopted in England, 
 has been maintained in this country during the last 40 years. 
 The abolition of the Sayer or inland transit duties which had 
 given rise to frightful abuses and had weighed upon the 
 springs of industry like a dead weight has already been 
 referred to. In 1844, the year in which the Sayer duties 
 were abolished, the trade between ports within British India 
 was declared free, the revenue relinquished on both accounts 
 being 36 lakhs of rupees. The tariff as regards foreign trade 
 was at the same time remodelled, but the old principle of 
 differential and discriminating duties in regard to articles 
 imported from and exported to British territories and similar 
 articles exported to and imported from other countries, as 
 well as in regard to merchandise carried in British and 
 foreign ships was still maintained. Thus the rate on metals, 
 wrought and un wrought, the produce of the United King- 
 dom, or any British possession, if brought in British ships, 
 paid a duty of 3 per cent., and if brought in ships of other
 
 125 
 
 countries paid 6 per cent. Metals, the produce of foreign 
 countries, if brought in British ships, paid 6 per cent., and if 
 brought in ships of other countries paid 12 per cent. On 
 cotton goods manufactured in the United Kingdom or any 
 British possession the duty was 3-|- per cent, if brought in 
 British ships and double that rate if brought in foreign ships. 
 Similar discriminating duties were imposed on articles of 
 export merchandise also. Cotton shipped to Europe, the 
 United States of America and any British possession in 
 America paid no duty, if the article was taken in British 
 ships, and 9 annas a maund if taken in foreign ships. The 
 export duty on cotton taken to other countries in foreign 
 ships was Rs. 1-2-0 a maund. These injurious restrictions, 
 the relics of the old Colonial system, which must have pre- 
 vented the development of a trade between India and foreign 
 countries, were done away with in 1858-59, but as the neces- 
 sities of Government on account of the Indian mutiny and 
 the consequent increase of public expenditure were very 
 great, the Customs duties were generally raised from 5 to 
 20 per cent. Since 1860, the reforms of the tariff, with some 
 notable exceptions, have consisted in the reduction and sub- 
 sequent abolition of the duties on most articles of merchan- 
 dize. The only articles on which an import duty is now 
 levied are: (1) arms and ammunition and military stores, 
 (2) liquors, (3) salt, and (4) petroleum; and the export list 
 of dutiable articles consists of (1) paddy and rice, and (2) 
 opium. The import duty on arms and ammunition is 
 necessitated by political, and that on liquors by moral, consi- 
 derations, the object in both cases being to prevent and not 
 to promote their unrestricted use. The import duty on salt 
 is necessitated by the excise duty on the same commodity, 
 and I have already given my reasons for considering this tax 
 to be in the highest degree objectionable. The import duty 
 on petroleum, which is "the light of the poor," is also open 
 to objection, but the tax is a light one, and its collection does 
 not involve any special hardship, or additional machinery, as 
 owing to the explosive nature of the article, its import and 
 storage can, under any circumstances, be allowed only subject 
 to special restrictions imposed for ensuring public safety. 
 Among the dutiable articles of export tariff the duty on opium 
 is, of course, unobjectionable, at all events from the point of 
 view of the anti-opium society whose object is to restrict the 
 consumption of Indian opium in China. Sir Evelyn Baring in 
 his financial statement for 1882-83 made the following remarks 
 in connection with the economic objections to the Government 
 monopoly of the drug and the moral aspects of the traffic in it,
 
 126 
 
 " The economic objections to the manner in which the opium 
 revenue is raised, whether in Bengal or Bombay, may be 
 admitted to be considerable. In the former case, the Gov- 
 ernment itself engages in private trade — a course which is 
 open to obvious objections. In the second case, a hekvy 
 export duty is imposed. In both cases the course adopted 
 interferes with, and restricts the free production of, and the 
 trade in, opium. It cannot be doubted that it would be 
 profitable to any trader to pay for crude opium a much higher 
 sum than is now paid by Government to cultivators of Bengal. 
 If, therefore, supposing such a thing to be possible, no restric- 
 tion were placed on the cultivation of the poppy, and if at the 
 same time the export duty were taken off, it is certain that an 
 immense stimulus would be given to the production of opium, 
 and that China would be flooded with the Indian drug. Thus 
 in direct proportion to the removal of the economic objec- 
 tions, the moral objections would be intensified in degree. 
 So long, therefore, as the plea of the an ti- opium society is 
 confined to the contention that the Indian Government should 
 cease its direct connection with the opium trade, it may be 
 said, with perfect truth, that their policy is based purely on 
 theory. Not only can it efi'ect no practical good, but it almost 
 certainly would do a great deal of harm. It would increase 
 the consumption of opium in China. It would, by cheapening 
 the price of the Indian drug, cause the poorer classes of the 
 population who now smoke native opium, to substitute Indian 
 opium in its place. It would, moreover, encourage the use 
 of opium amongst the native population of India, some of 
 whom, notably the Sikhs, are already addicted to the practice ; 
 and it would result in a diminution of the food supply of 
 India, by reason of the cultivation of the poppy over land on 
 which cereals are now grown. If, therefore, the policy is 
 not merely to be theoretical, but is to be productive of some 
 practical good, it must aim not only at the disconnection of 
 the Indian Government with the manufacture and sale of 
 opium, but at the total suppression of the cultivation of the 
 poppy." To us in Madras where the cultivation of the poppy 
 is entirely prohibited, the interest in the opium question arises 
 from the fact that the abolition of the export duty on the 
 drug and the relaxation of the restrictions placed on its trans- 
 port will have the efi'ect of flooding Southern India with a 
 noxious article and of creating a taste for it among its popu- 
 lation, which is not now addicted to the practice of consuming 
 opium. Fiu'ther the relinquishment of the large revenue 
 derived from the opium duty would also render the imposition 
 of additional objectionable taxation necessary, v/hile what is
 
 127 
 
 wanted is that the salt duty should be either removed or 
 reduced. The export duty on rice violates every principle, 
 and is most injurious in practice. It used to be defended on 
 the ground that India enjoyed a monopoly of the production 
 of rice, but this argument, as has been repeatedly pointed out 
 by Mr. 0' Conor in his trade reviews, is not, and was never, 
 fairly sustainable. Indian rice is used (1) for distillation, (2) 
 for starch, and (3) for food, and in these various uses rice has 
 to compete with several other products, and India with several 
 other countries. The countries that enter into competition 
 with India are Siam, Cochin-China, Japan, Java, Northern 
 Italy, and the productions which enter into competition with 
 rice are maize, barley, rye, potatoes, Mohwa flower, and even 
 wheat and sugar, many kinds of which are being sold in the 
 English market as cheaply as rice, and even more cheaply. 
 The rice used for food has to compete with European rice 
 (that of Lombardy in particular) and with the rice of the 
 Asiatic countries as well as with Madagascar rice and the rice 
 produced in the Southern States of the Union. Mr. 0' Conor 
 points out that whereas 20 years ago we did a large business 
 with China, that trade has almost ceased to exist, Cochin- 
 China as well as Siam having driven our rice out of the 
 market. The export duty on rice, 3 annas a maund, which 
 amounts to 7 per cent, on the value, is a heavy one, and 
 its retention in the tariff, while duties far less injurious in 
 their effects have been abolished, gives occasion for valid 
 complaint.^^ 
 
 *^ The objections to the export duty on rioe were very forcibly stated by the 
 Honorable Mr. Steel ia the Legislative Council of India in 1885. He said : " I must 
 protest in the strongest terms against any budget which does not redress this crying 
 evil of our financial system. I refer to the export duty on rice. To my mind it seems 
 inconceivable that such an objectionable impost should be preserved in any civilized 
 country. An export duty on raw produce and that produce the food of the people ! 
 With all our study of economics, can we do no better than this ? It is as hurtful in prac- 
 tice as vicious in principle. Who would dream of an export duty on wheat ? In 
 principle there is no diiference. Let us consider its effect. An export duty of 10s. per 
 ton is equal to a tax of 5 to 10 per cent, upon its value. It absolutely shuts out the 
 grain from important consumption for distilling and sizing purposes. It reduces the 
 foreign consumption of rice for food when it comes into competition with other articles 
 of food. It thus limits the production of the principal agricultural product of Bengal 
 and Burma at the cost of the agricultural and labouring classes. By checking the 
 production of rice, it diminishes the reserves to which we must look in case of scarcity 
 and famine. I look upon this rice-tax as the very worst possible source of revenue 
 which could be devised, and cannot approve of any budget which does not get rid of it 
 even at the risk of fresh taxation. I have been informed that of the abundant harvest 
 of 1882, much rice was actually allowed to rot on the ground, because not worth the cost 
 of saving, which but for this duty might have been saved and shipped." Sir Evelyn 
 Baring, when examined before the Royal Commission on the value of the precious metals, 
 admitted that it was a fair criticism that the export duty on rice should have gone first, 
 that is, before the cotton duties, because the abolition of the export duties would have 
 been extremelv beneficial to India, more especially in view of the difiiculty rec;arding the 
 rate of exchange. He added : " I look upon this as the most important fiscal reform 
 in India, and I always immensely regret that while I was in India, I was not able to 
 crown the free trade edifice by abolishing the export duties,"
 
 128 
 
 54. The growth of the stamp revenue 
 ^°^P^' yf{\\ be seen from the following figures : 
 
 
 
 Rx. millions 
 
 Average of 10 vears ending 
 
 1819-20 
 
 •04 
 
 Do. ' do. 
 
 1829-30 
 
 •06 
 
 Do. do. 
 
 1839-40 
 
 •04 
 
 Do. do. 
 
 1849-50 
 
 •04 
 
 Do. do. 
 
 1859-60 
 
 •07 
 
 Do. do. 
 
 1869-70 
 
 •29 
 
 Do. do. 
 
 1879-80 
 
 •47 
 
 Do. do. 
 
 1889-90 
 
 •58 
 
 In 1889-90 
 
 ••> 
 
 •65 
 
 This revenue has developed rapidly since 1859 when the 
 Code of Civil Procedure was passed, and the system of levying 
 court fees by means of stamps on civil suits instituted was 
 introduced. Of the sum of 65 lakhs of rupees, which is the 
 revenue now derived from stamps, 40 lakhs are obtained from 
 judicial stamps and 25 lakhs from general stamps. The 
 institution fee levied on civil suits is 7^ per cent, on the 
 value of the property in litigation when it does not exceed 
 Es. 1,000, and the rate is reduced for higher values, the 
 maximum fee being limited to Rs. 3,000. On criminal com- 
 plaints a fee of 8 annas is levied. Apart from the abstract 
 question of the propriety of taxing justice, there is little to 
 complain of in regard to the stamp duties on judicial pro- 
 ceedings. The growth of the revenue is entirely due to the 
 increase in litigation consequent on the general progress of 
 the country and the great increase in value of moveable and 
 immoveable property, more especially the latter. The number 
 of civil suits instituted in 1850 was 81,892, the value of the 
 property involved being 55 lakhs. In 1889 the number of 
 suits had increased to 255,006 and the value of the property 
 to 3 "75 crores of rupees. The average value of a suit, which 
 in 1850 was Rs. 70, is now Rs. 146. Recently the Govern- 
 ment of India had the question of the extent to which the 
 expenditure on the maintenance of Civil Courts was recouped 
 by the stamp duties paid by the litigants, investigated. The 
 result as regards the Madras Presidency was that the receipts 
 were found to be very slightly in excess of the expenditure. 
 If the scheme which appears to be under the contemplation 
 of Government for further improving the position and status 
 of the District Munsiffs and Sub-Judges be carried out, there 
 will be no profit to Government, but on the other hand a 
 slight loss. The court fees levied on suits doubtless bear 
 hard on the poorer litigants to some extent ; but tiie remedy 
 for this, however, ia not the abolition of the "feesj but the
 
 *. 129 
 
 provision of popular and inexpensive tribunals for the settle- 
 ment of petty litigation. 
 
 The duties levied under the general stamp law are not 
 very onerous as the rate for transfers of land ^^ on sales and 
 mortgages, which form the bulk of the transactions in regard 
 to which duties have to be paid, is only one per cent. The 
 provisions of the stamp law, which are based mainly on those 
 of the corresponding English Act, are not intelligible in 
 many respects, and this obscurity and the stringency of the 
 provisions made for ensuring compliance with the require- 
 ments of the law sometimes work considerable hardship to 
 ignorant and unlettered peasants who cannot afford to obtain 
 competent legal advice when they have documents to execute. 
 Much of this hardship has, however, been since removed by 
 the orders issued by Government making it obligatory on 
 officers of the Registration department to advise persons 
 consulting them as to the stamp duty payable on documents. 
 At present the opinion of the Registration officer is not 
 conclusive and does not relieve the person who has acted 
 upon it from responsibility for insufficient stamping. An 
 alteration of the law relieving from responsibility persons 
 whose documents have been accepted as sufficiently stamped 
 and acted on for registration purposes by an officer of the 
 Registration department will remove all room for complaint. 
 I do not believe that the revenue will be in the least affected 
 by this change of procedure, as the proceedings of the subor- 
 dinate officers of the Registration department are being very 
 closely scrutinized by the District Registrars in this respect 
 and any laxity observed is promptly taken notice of. 
 
 55. The system of registration and authentication of docu- 
 ments is one of recent introduction and 
 
 Registration fees. .i c iij^i j_ i • • 
 
 the tees collected are, to a great extent, 
 devoted to the maintenance of the establishments required for 
 the purpose. The present revenue is about 11 lakhs of rupees, 
 of which about 8 lakhs of rupees are annually expended. 
 Further improvements in contemplation will reduce the sur- 
 plus, out of which have to be met the pensionary liabilities 
 as regards the officers employed in the department. The 
 registration fee amounts to '63 per cent, of the value of 
 the transaction in the case of sales and '60 per cent, in 
 the case of mortgages and is therefore very moderate. On 
 
 *^ In France the value of immoveable property which changes hands by transfer 
 is estimated et 80 millions sterling and that which changes hands by succession 60 
 millions sterling. The duties charged on both amount to 8 millions or 5"7 per cent, on 
 the value of the property. 
 
 17
 
 130 
 
 transactions of small values, viz., those not exceeding Rs. 100 
 in value, the fee is comparatively high, but the minimum fee 
 cannot well be fixed lower than 8 annas the present limit, 
 having regard to the cost of stationery and the charges 
 incurred for transcribing the documents in the registers. 
 In this Presidency the convenience of the general public has 
 been consulted by the establishment of registration offices in 
 large numbers ; and the time has arrived for making the 
 registration of all documents relating to immoveable pro- 
 perty, even where the value is less than Rs. 100, compulsory. 
 Under the present law, documents of this kind, except sales 
 and gifts, are not required to be registered, but it is pro- 
 vided that unregistered transactions as regards such pro- 
 perties, even if prior in point of time, are to have no effect 
 as against registered transactions. This leaves a considerable 
 loop-hole for fraud. If this is remedied, the registration 
 system will be capable of considerable development in direc- 
 tions which will admit of a complete record of transactions 
 connected with landed properties being maintained in a 
 readily accessible form. 
 
 56. In the appendix V.-B. (i) will be found a statement 
 showing the incidence of the taxes levied 
 ^jnoidence of taxa- in 1852-53, 1872-73, and 1 889-90 per head 
 of the population. In 1852-53, the inci- 
 dence was Rs. 1-14-6, in 1872-73 Rs. 2-10-8, and in 1889-90 
 Rs. 2-14-3 per head, or, in other words, the rate of incidence 
 has increased since 1852 by 51 per cent., while the purchas- 
 ing power of money has fallen by 60 per cent. There can 
 be no doubt also that of the taxes collected more is spent 
 in promoting the public safety, health and convenience and 
 education in this Presidency than formerly as will be seen 
 from the following figures : Expenditure on irrigation works 
 457 lakhs of rupees in 1889-90 against 9*7 lakhs in 1849-50 ; 
 buildings and roads not including railways 58 lakhs against 
 7'2 lakhs; judicial establishments 41 '3 lakhs against 23*6 
 lakhs; police 39'8 lakhs against 9*8 lakhs; education 22*9 
 lakhs against 1*1 lakh; medical relief 33'3 lakhs against 1'2 
 lakhs; and the postal service 13*9 lakhs against 4*3 lakhs. 
 The development of the resources of the country by the 
 construction and maintenance of irrigation works, canals, 
 railways and roads has already been noticed. In 1852-53 
 there were three public schools with an attendance of 448 
 pupils ; in 1889-90, there were 16,226 public institutions 
 with 517,055 pupils and 4,286 private institutions with 
 83,496 pupils. In 1860 there were 130 post offices con-
 
 l3l 
 
 trolled by 30 postmasters; at the close of 1889-90^* there 
 were 1,691 imperial post offices, 1,412 letter boxes, 985 
 postmen, and 898 village postmen, besides 68 district post 
 offices and 748 village postmen. The telegraph offices have 
 of course been all estabhshed since 1850. The number of 
 letters posted in 1853-54 was 3'66 millions and newspapers 
 0-29 millions; in 1889-90 the numbers were 48 and 3'8 
 millions respectively. I have no exact statistics as regards 
 the number of hospitals and dispensaries in 1850; these 
 institutions were maintained only at the head-quarter stations 
 of the several districts and the rural tracts had not the 
 advantage of them. In 1889 there were 393 institutions, 
 in which 2J millions of persons were treated, the daily 
 average attendance being 17,000. 
 
 57. The standard of living and the general condition of 
 the different classes of the population. — For purposes of this 
 enquiry, the general population may roughly be divided 
 into four main divisions ; viz., I, the agricultural classes, 
 comprising landowners, tenants and agricultural labourers ; 
 
 ^■^ The following extracts from the petition presented by the Madras Native 
 Association to Parliament in 1852 complaining of the insufficiency and unsatisfactory 
 character of the postal arrangements at that time will be read with interest : 
 
 " That your petitioners will now advert to some other subjects requiring redress, 
 such as the Post Office, which, besides being very tardily and slovenly conducted, acts, 
 by the exorbitance of its charges, like a dead weight upon commercial correspondence 
 and the circulation of knowledge ; and which weight would be considerably lightened, 
 were the conveyance of official papers, which form three-fourths of the mail conveyed 
 by tappal, placed to the expense of the Government : this would make the Post Office 
 revenue four times the amount now credited, and of course would permit of a corre- 
 sponding reduction in the cost for carriage ; a letter or package which now is taxed at 
 Is. might then reach its destination for the cost of 3d. ; and still the returns of the 
 department would more than cover the expenditure, even without an increase of 
 correspondence, which, however, woidd certainly take place to a considerable extent, 
 as a consequence of a diminution in the rates of postage. 
 
 " That a necessary auxiliary to the increase of correspondence is a thorough reform 
 in the management of the Post Office departments, beginning at the capital, and 
 extending to the most remote boundaries of the Presidency, which, although containing 
 an area of upwards of 140,000 square miles, has no more than 130 post offices, con- 
 trolled by 30 Postmasters, a number totally inadequate to the wants of the public, 
 to meet which efficiently your petitioners suggest that there should be at least one or 
 more offices in every taluk, according to its size, so that no inhabited part of the country 
 should be more than 10 miles from a post office. At present, the arrangements for 
 distributing the letters among the native population, even at the stations where the 
 offices are situated, are most defective and imperfect ; the agents employed are of an 
 inferior description, who frequently retain the delivery for days, till the parties to 
 whom the letters are addressed submit to some unauthorized demand ; while, as regards 
 places at a distance from the post stations, the evil is much greater ; enormous delay 
 extending not unfrequently to weeks, is incurred and a heavy charge besides ; while 
 after all, the delivery of letters is uncertain, and wrong parties are sometimes permitted 
 to obtain their possession. 
 
 "That these combined circumstances, the paucity of offices and their inefficient 
 supervision, the delays, exactions and uncertainties, cause the post office to be greatly 
 less trusted, than it would otherwise be by the Native public, who, in very many 
 instances, have established dawk transit at their own expense, thereby depriving the 
 State of a part of its income, to an extent necessarily unknown, but as necessarily of no 
 trivial importance ; and your petitioners, therefore, request that there may be a 
 thorough reform in this department, reaching to the whole of its branches ; and that 
 every paper or package passing through it shall be made subject to the same uniform 
 rate of charge."
 
 132 
 
 II, labourers not connected with land ; III, the professional, 
 mercantile and other classes owning capital other than land ; 
 IV, the artizan classes and small traders. The divisions here 
 referred to have been very roughly made, and, in some 
 instances, they overlap one another. A landlord is often a 
 money-lender or trader, and an artizan frequently owns a 
 piece of land ; and a peasant proprietor ekes out his small 
 income from land by non-agricultural labour, e.g.^ by spin- 
 ning or working on the roads during the non-agricultural 
 season. The prosperity or the reverse of large sections of 
 the population must also re-act on the condition of other 
 classes, for instance, traders prosper when the agricultural 
 classes thrive and so on. Nevertheless, there is a conveni- 
 ence in considering the condition of different sections of the 
 population separately, and the main divisions above given 
 are sufficiently accurate for the purpose in view. For the 
 most recent information regarding the number of persons 
 falling under each of the main divisions, we must wait till 
 the detailed tables connected with the census taken in 3 891 
 are published. I have given in the appendix V.-F. (a) a table 
 extracted from the census report of 1881, showing the num- 
 ber of persons engaged in the several occupations in 1881 as 
 compared with the number in 1871, but, owing to the 
 dissimilar methods adopted in classifying occupations at the 
 two censuses, the results shown cannot be fully relied on. 
 Statistics as regards persons engaged in the several occupa- 
 tions according to the census of 1891 are not yet available. 
 
 58. There is a pretty general impression that in this 
 Presidency land is held in small proper- 
 oiMses. ^^^^'"^^"'^ ties by pauper ryots. There is truth in 
 this, but not to the extent that is often 
 supposed. Out of the 90 millions of acres forming the area 
 of this Presidency, 27-| millions, or between one-third and 
 one-fourth, are held by 849 zemindars; 15 of these zemindars 
 hold 6f million acres, or nearly half a million each, paying to 
 Government a peshcush of 2 lakhs of rupees on an average ; 
 128 zemindars hold 9 J millions of acres and pay to Gov- 
 ernment an average peshcush of 18,100 rupees; and 706 
 zemindars and mittadars hold 2f million acres and pay a 
 peshcush which averages 1,300 rupees. The peshcush of the 
 zemindaris was fixed at two-thirds of the rental in the case 
 of ancient estates, and 90 per cent, of the rental in the 
 case of estates newly created at the time of the permanent 
 settlement. A few large estates, which were held as^ military 
 jaghirs, pay a quit-rent. The rental of all these estates 
 amounts to 161 lakhs of rupees, while the peshctlsh amounts
 
 133 
 
 to 50 lakhs, or, in other words, the rental is now more than 
 three times the peshcush, and the zemindars have conse- 
 quently enormously benefited. Between 1830 and 1850, 
 owing to the low prices of grain which prevailed, several 
 zemindars in the Kistna and Godavari districts were unable 
 to meet their engagements with Government and their 
 estates were consequently sequestered, sold by auction and 
 purchased by Government and incorporated with ryotwar 
 lands. But for this circumstance, nearly the whole of the 
 rich delta of the Godavari and Kistna would, at this day, have 
 consisted of zemindari lands. The estates, which escaped 
 this process, yield a very large revenue to their owners, who, 
 with some exceptions, squander it in litigation and dissipa- 
 tion, and the benefits, which, it was expected, would accrue 
 from the permanent settlement, have not so far been realized. 
 Education, however, has been forcing its way latterly even 
 among zemindars, and it may be hoped that they will, within 
 another generation, utilize their wealth and resources in 
 improving the condition of their tenantry and in aiding the 
 general progress of the country. 
 
 The next class of landowners are the inamdars who 
 number 438,659 and hold between them 8*2 millions of acres 
 or 19 acres each on an average. Out of this area, a little 
 more than 3 millions of acres are comprised in entire inam 
 villages and the remainder consists of petty holdings origin- 
 ally held on service tenure in ryotwar villages and recently 
 enfranchised. The position of the latter does not differ 
 materially from that of the ryotwar puttadars. The holders 
 of whole inam villages, who generally belong to the sacerdotal 
 and non-cultivating classes, are in an impoverished condition, 
 their property having got sub-divided into minute portions. 
 The revenue paid by these estates amounts to 16 per cent, of 
 the rental. Originally inam properties were not transferable 
 by sale and were liable to be resumed by Government on 
 failure of direct heirs of the holders. All these properties, 
 with a few insignificant exceptions, have, as already observed, 
 been freed from these restrictions and declared heritable and 
 transferable property, subject to the payment of a light quit- 
 rent imposed by way of compensation to the State for the 
 reversionary right relinquished by it. 
 
 The third-class of landowners are those numbering 550, 
 who have redeemed the land-tax by making a lump payment 
 to Government. These properties consist of parcels of land 
 forming house-sites or gardens attached to house-sites. 
 
 The fourth-class consists of purchasers of waste lands in 
 hill tracts for the formation of plantations. The area held
 
 l34 
 
 under this tenure is small, and the land-tax imposed is not 
 liable to enhancement. 
 
 The fifth and by far the most numerous class comprises 
 the ryotwar puttadars or peasant proprietors. The total 
 number of estates on this tenure is 2,850,000 and the number 
 of owners including shareholders is 4,600,000. The total 
 
 area of ryotwar villages is 59 '3 
 million acres, from which 31 
 million acres must be deducted 
 on account of unculturable 
 waste and lands held on inam 
 tenure and lying interspersed 
 with ryotwar holdings, leaving 
 28'3 millions which, at present, 
 are considered fit for cultiva- 
 tion. Of this area 21*2 million 
 acres, paying a revenue to 
 Government including cesses 
 of a little more than Rs. 2 per 
 acre, are comprised within ryot- 
 war holdings, the remainder 
 being unoccupied. The mar- 
 ginally - noted statement ^^ 
 shows the distribution of the 
 ryot-war puttadars into several 
 grades, with reference to the 
 amount of tax paid by them. 
 The revenue statistics of this 
 Presidency do not show the 
 distribution according to the 
 areas, but the revenue paid is 
 a better index to the status 
 of a ryot than the area of 
 holding, and the area can 
 be roughly deduced from the 
 revenue, by assuming that each 
 acre pays Rs. 2 as land-tax. 
 
 
 09 
 
 O 
 
 s 
 
 
 Class. 
 
 II 
 
 go 
 
 go 
 Ph 
 
 
 Ryots paying be- 
 low Rs. 10 as 
 
 
 
 RS. 
 
 land tax 
 
 65-6 
 
 17-5 
 
 4 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Rs. 10 
 
 
 
 
 and Rs. 30 ... 
 
 23-5 
 
 27-7 
 
 17 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Re. 30 
 
 
 
 
 and Rs. 50 ... 
 
 5-7 
 
 14-9 
 
 37 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Rs. 50 
 
 
 
 
 andRs. 100 ... 
 
 3-5 
 
 16-5 
 
 67 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Rs. 100 
 
 
 
 
 and Rs. 250 .. . 
 
 1-4 
 
 13-7 
 
 143 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Rs. 250 
 
 
 
 
 and Rs. 500 ... 
 
 0-2 
 
 53 
 
 324 
 
 Ryots paying 
 land-tax be- 
 
 
 
 
 tween Rs. 500 
 
 
 
 
 and Rs. 1,000. 
 
 006 
 
 2-8 
 
 646 
 
 Ryots paying 
 land-tax above 
 
 
 
 
 Rs. 1,000 ... 
 Total ... 
 
 002 
 
 1-6 
 
 1,542 
 
 100 
 
 100 
 
 14 
 
 ** It would be interesting to compare these results with the distribution of land 
 among several grades of proprietors in France which is as follows : 
 
 
 Number of 
 proprietors 
 (thousands). 
 
 Percentage 
 to total. 
 
 Acreage 
 (millions). 
 
 Percentages 
 
 of acreage 
 
 to total. 
 
 Under 5 acres 
 
 5 to 15 acres 
 
 15 to 125 acres 
 
 125 to 500 acres 
 
 Over 500 
 
 10,426 
 
 2,174 
 
 1,352 
 
 105 
 
 18 
 
 74-1 
 
 151 
 
 9-6 
 
 07 
 
 01 
 
 130 
 
 18-9 
 
 480 
 
 23-9* 
 
 20- 
 
 10-5 
 . 15-3 
 38-9 
 191 
 16-2
 
 135 
 
 If settlement calculations can be relied on, one acre of 
 ordinary dry land, whicli is assessed at Es. 1-12-0,^^ gives 
 an outturn of Rs. 17 taking good and bad seasons together, 
 and 8 acres of such land would give Rs. 136. Deduct- 
 ing Rs. 14, the Government tax, which is a little more 
 than 10 per cent, of the gross outturn, there, is left about 
 Rs. 122 for the subsistence of the family of the ryot and for 
 defraying the cultivation expenses, which are estimated at Rs. 
 5 per acre. Out of this, wages of labour amount to about 
 Rs. 3, and what the ryot will have to expend in cash or grain 
 is Rs. 2 per acre or Rs. 16 for 8 acres, when he cultivates 
 the land himself and does not employ hired labour. There 
 is, ^^ therefore, left for subsistence about Rs. 106 or Rs. 9 
 a month, and this sum will enable a ryot's family to subsist 
 according to the standard of living in force among the ryot 
 population. Probably, the family will make also something 
 by growing vegetables, keeping a cow for raising dairy pro- 
 duce for consumption, &c., all of which will leave a margin 
 above the cost of subsistence, but this may be neglected. 
 Eight acres, therefore, of ordinary dry land, paying Rs. 14, 
 or a proportionately larger area of inferior land, paying the 
 
 An. acre cultivated in France produces much more than an acre here ; but the 
 standard of living there is higher in proportion than here. In France, about 90 per 
 cent, of the proprietors have 2J acres each. Here 90 per cent, pay Rs. 7-8-0 each, 
 which gives an average holding of rather more than 3| acres. The number of landed 
 estates held directly under Government in this Presidency is about 3"3 millions and the 
 number of holders including shareholders is 6'4 millions [vide statement of Varieties of 
 Tenure given in the appendix V.-F. (b). The last number dots not include the holdings 
 of ryots in zemindari and inam villages, which may be e.itimated at about another million. 
 The total number of families having landed property may roughly be taken to be about 
 6" 5 millions out of a total number of families of, say, 7 millions forming the population 
 of the whole Presidency ; or in other words, upwards of 90 per cent, of the families 
 in the Presidency have lauded properties, however small. There is no information as 
 regards the extent to which ryotwar proprietors possess zemindari and inam lauds. 
 In the dry districts many ryotwar proprietors possess inam lands ; and allowing for 
 this, the number of families possessing landed property may safely be estimated at, say, 
 80 per cent. In the South Arcot district, the number of ryotwar proprietors alone is 
 83 per cent, of the total number of families in the district, taking 5 persons to a 
 family. In European countries the extent to which landed property is diffused among 
 the population will be seen from the following figures, which represent the percentage 
 of the number of possessors of land to the total number of families taking 5 persons to 
 a family : United Kingdom 2o ; France 45 ; Germany 25 ; Russia 70 j Austria 45 ; 
 Italy 35 ; and the United States 40. 
 
 ®^ I have taken an acre of land of ordinary quality for illustration, and, in some 
 districts, land of veiy poor quality predominates ; but there the area of holding is 
 considerably larger. The average area of holding varies in each district, with refer- 
 ence to the quality of land and the standard of living in force among the agricultm-al 
 population. 
 
 ^' As some objections have been" taken to the estimate of income given in this para- 
 graph, the following remarks are made to explain clearly what is meant. The object is to 
 fend the distribution of the agricultural income among four classes of ryots, viz., 1st, 
 those who chiefly live by wages of labour but have also small holdings to supplement 
 their earnings from this source ; 2ndly, those who can subsist entirely by cultivating 
 their holdings, provided they do all the work themselves and do not employ hired labour ; 
 Srdly, those who can subsist partly by cultivating their lands and partly by employing 
 hired labour ; and 4:thly, those who can live entirely on rent, Now it is useless to classify
 
 136 
 
 same amount of tax, may be taken as the area, which a ryot 
 family must cultivate by means of the labour of its members 
 to procure subsistence, and that, where the area of holding is 
 less, the ryot must supplement his earnings from cultivation 
 of his own holdings by labouring for others to procure a sub- 
 sistence. Similarly, owners of land, who hold 50 acres of 
 ordinary wet and dry land, paying to Government about Rs. 
 100 as land-tax, will be able just to maintain their families 
 on the rent of the lands obtained by letting them to tenants. 
 These are the minimum limits for obtaining a subsistence, by 
 working in the fields in the one case, and by letting the lands 
 in the other, without other resources. Ryots holding lands, 
 which are between 8 and 50 acres in extent, may be taken as 
 belonging to the class of persons who cannot afford to let 
 their lands to tenants and live solely on the rent, but will be 
 able to hire labour for cultivation, themselves doing a portion 
 of the work of cultivation, or, at all events, superintending 
 its details. Their larger holdings will, of course, enable 
 them to keep a larger number of cattle, and, provided that 
 the families are of the average size, to save some money. 
 Now, bearing these limits of area in mind, it will be seen 
 
 the ryots under these four heads simply with reference to the average area held by each 
 class, and moreover statistics of areas are not available for this purpose. Lands are 
 of all degi'ees of fertility, and unirrigated lands differ so enormously in value from 
 irrigated lands that the revenue assessment per acre varies from 4 annas to 12 
 rupees in the case of single crop and to 18 rupees in the case of double crop 
 lands. It is for this reason that I have taken the assessment as a better test for 
 determining the status of each ryot. It is found that about 27"7 per cent, or about one- 
 third of the land revenue is paid by lyots who pay on an average Rs. 17 per head. As 
 the average assessment per acre, taking wet and dry land together, is about Ks. 2, and 
 the average assessment for dry land alone Re. 1 per acre, a man who pays Rs. 17 as 
 revenue can hold 8 acres assessed at Rs. 2 each or 17 acres assessed at Re. 1 each. The 
 income of a ryot of this class including the wages of his own labour and that of his 
 family, I calculated at Rs. 9 per mensem, when he and the members of his family culti- 
 vate the holding themselves. It has been objected that according to settlement calcula- 
 tions the income comes out as only Rs. 5 per mensem. The objection overlooks the 
 fact that the settlement calculations are based on certain assumed commutation rates 
 for valuing produce, which are much below the actual market rates, while what is 
 I'equired is the present income of the family. Moreover it has been found in connection 
 with the enquiries instituted by the Agricultui'al department as to the condition of the 
 Pariah population in the Chingleput district that a padial or land-less agricultural 
 labourer, and his wife earn more than Rs. 5 per mensem besides obtaining presents 
 on occasions of marriages, feasts, &c., from their employers, and the income of a ryot 
 cultivating 8 acres of land assessed at Rs. 1-12-0 or Rs. 2 each or 17 acres assessed at 
 1 rupee per acre is surely not over-estimated, but much under-estimated by being put 
 down at Rs. 9 per mensem when it is remembered that such income includes the wages 
 of the members of the ryot's family. Similar considerations apply to the other classes 
 of the ryots referred to in the text. The calculations are based on the assumption that 
 the agricultural income is proportional to the revenue assessment which is true only as 
 a very rough approximation ; and this is sufficient for my purpose which is to indicate 
 the manner in whicli the question shoald be regarded from the point of view of 
 general distribution of agricultural income and not to decide the exact percentage of 
 income of each class. It has been contended that the great majority of the agri- 
 culturists have very small holdings. This is true, but it is the case all the world 
 over in countries where peasant properties prevail ; and it must be remembered that 
 where large farms prevail, the vast majority of the agricultural population owns no land 
 whatever.
 
 137 
 
 that out of the total revenue of ryotwar holdings, 17*5 per 
 cent., or, say, roughly, one-fifth, is contributed by agricul- 
 tural labourers who must eke out a living by working for 
 others, the small extent of land held by them being in the 
 nature of agricultural allotments, the produce of which 
 merely goes to supplement their earnings by labour. Another 
 27'7 per cent., or, roughly, one-third, is contributed by 
 peasant proprietors who cannot afford to employ hired labour, 
 except during the time of harvest. Another 31*4 per cent., 
 or about one-third, is contributed by proprietors who must 
 farm their own lands, but who can employ hired labour for 
 carrying on some or all the manual work connected with the 
 farm. The remainder is paid by the class who can afford to, 
 but need not, let their lands, and subsist, not certainly in 
 plenty, but, as I have already stated, in accordance with the 
 standard of living usual among their class in this country. 
 If this class were suflBciently educated, and cultivated the 
 holdings without sub-letting them, they would be able to 
 adopt, not indeed very expensive improvements, but such as 
 those which small proprietors in European countries might 
 be expected to undertake. 
 
 The number of ryots in zemindaris may be estimated at 
 about a million, but no particulars as regards the quantity of 
 land held are available. It may, however, be presumed that 
 the distribution among the several classes of zemindari ryots 
 is much the same as with Government ryots with the reser- 
 vation that as the incidence of the land assessment, whether 
 paid in money or in kind, is higher in zemindari tracts than 
 in Government taluks, the average extent of land to be 
 cultivated for subsistence must be larger and the number 
 of ryots smaller in the former case than in the latter. In 
 countries in which lands are held by a small number of 
 proprietors there is a very large section of the population 
 dependent solely on daily labour for subsistence, while in 
 countries where small properties predominate the capitalist 
 classes capable of initiating and carrying out agricultural 
 improvements do not exist; but the labouring classes have, 
 for the most part, the income derived from a small piece of 
 land to supplement their earnings from daily labour. In 
 this Presidency, it will be seen from the facts stated above 
 that while the bulk of the area is held in small properties 
 averaging 8 acres in extent, there are nearly 1,000 landed 
 proprietors, some of them with princely incomes. The reason 
 for the absence of agricultural enterprise must, therefore, be 
 sought not so much in the predominance of peasant properties 
 
 18
 
 138 
 
 as in the absence of conditions which make high farming a 
 necessity. 
 
 59. It is extremely difficult to obtain reliable information 
 regarding the wages of agricultural labour 
 
 labTufers!"^ agricultural ^^ ^^ ^^^ -^ -^ ^ gj^^p^ ^^^^^1 will admit of 
 
 the condition of the labourers in different 
 parts of the country being compared or of a decisive opinion 
 being formed as to the extent to which their position has 
 improved in recent years. Wages are generally stated to be 
 paid in grain and the rates of wages are believed ^^ not to 
 have varied materially since the beginning of the century. 
 This view of the matter, however, entirely overlooks the 
 fact that a considerable portion of the wages has always been 
 disbursed in the shape of perquisites or other advantages 
 such as huts and small allotments of land for cultivation free 
 of rent, &c., and these additional allowances have been 
 adjusted from time to time with reference to the demand 
 for labour, the prices of food-grains, the efficiency of the 
 labourer, the constancy of employment and opportunities 
 afforded to the labourer as well as those dependent on him 
 for making extra gains, &g. For the old years the only sys- 
 tematic enquiries on this subject were those of Dr. Buchanan 
 made in 1800. It is really surprising that he should have 
 been able, within the short period of a few months, to collect 
 and collate the large amount of minute information regard- 
 ing the agricultural condition of the several districts which 
 is contained in the two volumes, entitled. Journey through 
 Mysore, Ganara^ and Malabar, Generally accurate as the 
 information is, it was obtained chiefly from the landholders 
 who would naturally be anxious to exaggerate the expenses 
 of cultivation, and the rates of wages given have, therefore, 
 to be somewhat discounted on this account. In fact, 
 Buchanan himself was fully aware of this and has men- 
 tioned several instances in which he had reason to suspect 
 
 ^8 The following instances of enhancement of grain wages have been reported by 
 the Sub-Eegistrar of Kar6r. In 1829 at Selappallayapxittur, Trichinopoly district, the 
 wages of a reaper varied between 2^ and 3 Tanjore small padis. Now 6 small padis are 
 paid, and if the crop has to be reaped and brought from a distance to the threshing 
 ground, 8 padis. At Merathur, Tanjore district, in 1832 and 1833, the daily wages paid 
 to a labourer was 4 small measiu-es. Now 5 small measures are given. At Sana- 
 parathi, Coimbatore district, the wages of a labourer, which was 4 small measures 
 formerly, has increased to 6. The above particulars have been obtained from the 
 accounts kept by landholders. In reply to enquiries made by the Board of Revenue 
 recently the following Collectors have reported a rise in grain wages in recent years. 
 Qoddvari, an increase of one-ei(}hth ; Kistna, an increase the extent of which is not 
 ascertainable ; Eurnool, a tendency to rise ; ifadura, in Ferixjakulam and Tirumangalam 
 taluka, a rise of 25 and 20 per cent, respectively ; and Tinnevelly, a rise in'the northern 
 part.
 
 139 
 
 that the information furnished to him was exaggerated. 
 Moreover, large portions of the country had been almost 
 entirely depopulated by the Mysore wars, shortly before 
 Buchanan visited the tracts which he has described, and 
 consequently, there was great scarcity of labour in these 
 places at the time. Further, agricultural labourers had to 
 pay in those days the moturpha tax, which was practically 
 levied from their masters. For later years we have abso- 
 lutely no information beyond vague statements in the settle- 
 ment reports which are worse than useless, no systematic 
 enquiry having ever been made on the subject ; and it is a 
 matter for regret that the services of the settlement- officers 
 who have for years been working in the rural tracts and who 
 have had exceptionally favorable opportunities for enquiries 
 of this kind should not have been utilized for the purpose 
 of collecting information regarding matters connected with 
 agricultural economy. The Board of Revenue sometime ago, 
 at the instance of Government, called for reports from Col- 
 lectors regarding agricultural wages in considerable detail; 
 the results have not yet been published, but I have had the 
 advantage of reading the reports received. I have also 
 obtained some information from the officers of the Registration 
 department regarding the wages now prevailing in some of 
 the places visited by Buchanan in 1800. The following 
 imperfect account is based on the information obtained from 
 the sources above indicated : 
 
 Agricultural labourers are of all grades from the casual 
 daily labourer to the metayer tenant who divides the produce 
 of the land he cultivates with the landlord in defined propor- 
 tions. This class of labourers, however, may be divided into 
 three main divisions, viz., first, farm-servants more or less 
 permanently employed and remunerated by payments in money 
 or grain ; secondly, casual labourers employed on agricultural 
 work at the time of the harvest or as occasion arises and not 
 permanently attached to the farm ; and, thirdly, labourers on 
 the varum or sharing system. 
 
 Of the permanent farm-servants, those who live in the 
 master's house and partake of the meals cooked for him are 
 the most efficient and the best remunerated. They are, 
 comparatively speaking, generally well off, being well fed 
 and clothed and receiving, at the end of the year, as much 
 as their feeding and clothing would cost or a little more. 
 The servants employed are of the same or corresponding 
 castes as the masters and sometimes their relations. It is 
 stated in a report on cotton cultiyation in the Tinnevelly
 
 140 
 
 district published by the Agricultural department that "It is 
 noteworthy that labourers receiving part of their wages in 
 the shape of food do more earnest and willing work than 
 labourers who get their wages in cash or kind. The 
 Brahmins and the Pillays are not so successful in farming, 
 because they, unlike the Naickmars and Reddis, find it incon- 
 venient to feed their servants at home. The latter recog- 
 nizing the truth of the adage ' he who feeds well, works well ' 
 allow their servants to consume as much as they want, and 
 make no difference between themselves and their servants 
 as regards the service of meals." The remuneration of a 
 ploughman is Rs. 30 in addition to his food which, at the 
 high prices of food grains prevailing in the Tinnevelly district, 
 may be valued at Rs. 30. In Bellary the remuneration of a 
 farm-servant varies from Rs. 24 to Rs. 40 per annum, or 
 Rs. 10 to Rs. 20 plus the feeding and clothing, estimated to 
 cost Rs. 25. The food given amounts to 1^ seers or more 
 than 3 lb. of cholum a day (a high rate) and condiments worth 
 Rs. 3 a year. The clothing consists of cloths, a cumbli, a tur- 
 ban, a pair of drawers and a pair of slippers worth in all Rs. 4. 
 These servants are not solely attached to the farm, but are 
 expected to look after all kinds of household work. They are 
 sometimes allowed by their employers, for marriage purposes, 
 &c., loans ranging from Rs. 50 to Rs. 100, which are liquidated 
 by deductions from the salary. In the Anantapur district 
 (Gooty division), the servant is given food and cloths, the 
 food comprising three meals a day, together with betel and 
 tobacco, and an annual sum, ranging from Rs. 5 to Rs. 16, 
 according to the nature and urgency of the work, character 
 of the season and the capabilities of the labourer. Single 
 men are preferred, and, if married, their wives are tempo- 
 rarily employed. In some cases, instead of an annual cash 
 payment, a daily allowance of 1 seer (2 lb.) of grain is made 
 in addition to food and clothing. In the Ooimbatore district, 
 this class of servants is not employed to any great extent. 
 The servant is always an unmarried man and is provided 
 with food stated to cost between Rs. 15 and Rs. 30, and with 
 sandals, cloths, and occasionally blankets, costing Rs. 2. At 
 the end of the year, he receives a present in money of from 
 Re. 1 to Rs. 3. In Salem, unmarried labourers, if Sudras, 
 are fed by the ryot and are given a cloth valued at 1 rupee, a 
 blanket worth 14 annas, and Rs. 4 or Rs. 5 at the end of the 
 year in cash. They are allowed loans, ranging from Rs. 20 to 
 Rs. 50, without interest, at the commencement of service, or 
 at the time of marriage. In the Nellore district, labourers, 
 employed on the cultivation of garden land, are fed and
 
 141 
 
 clothed and receive annually from Rs. 6 to Rs. 24, the food 
 consisting of three meals a day and betel and tobacco. In 
 Vizagapatam, farm-servants are not given meals, except in 
 some places in the northern taluks, where the custom obtains 
 of giving them two or three meals a day : where two meals 
 are given, the annual wages are cut down by one-third, and 
 if three meals are given by one-half. In the first caae one 
 meal consisting of a quarter of a seer of boiled rice and cunji 
 is given in the morning at about 8 or 9 o'clock, and the second 
 meal consisting of a quarter of a seer (^ lb.) of ragi or other 
 flour boiled, at about 4 p.m. In the other case, the servant 
 is fed in the morning, noon and evening, the meals given 
 being the same as those of a member of the employer's 
 family. In Cuddapah the servant gets one local seer of food 
 daily (1*7 Madras seers) worth Rs. 14 annually, clothes worth 
 Rs. 4-8-0 and cash Rs. 3. Higher money wages are paid if 
 the ryot is a woman who cannot herself superintend the 
 cultivation. In a few cases, presents amounting to Rs. 4 or 
 Rs. 5 are allowed on occasions of marriages, &c. ; sometimes 
 the servant is allowed loans, without interest, amounting to 
 Rs. 50 or Rs. 60. But these do not form part of the service 
 contract. If the servant has a child above five and below 
 twelve years of age, the latter is given wages from Rs. 3 to 
 Rs. 4-8-0 with three meals a day and clothes. No deduction 
 is made in the wages for the temporary absence of labourers 
 on account of illness and other unavoidable reasons. In 
 North Arcot, servants in the Chittoor taluk are given three 
 meals estimated to cost Rs. 36 a year, Rs. 6 in cash and cloth 
 worth 1 rupee. Their presents and perquisites may amount to 
 about Rs. 5 or Rs. 6. The examples given above will suffi- 
 ciently show how difficult it is, amidst the wide variety of 
 form, which the remuneration assumes in different parts of 
 the country, to state in money values the earnings of the 
 labourers. The following general deductions may, however, 
 I think, be drawn from the facts stated ; viz., (1) perma- 
 nent servants are employed only by the well-to-do ryots 
 and, when they are fed at the master's house, get as much 
 food as they can possibly take ; (2) the quantity of food is 
 variously given from 3 lb. in Bellary to 1^ lb. in Vizagapatam, 
 and 2 lb. of dry grain per diem and 1| lb. of rice may, on an 
 average, be taken as ample allowance for an adult doing full 
 work; (3) the value of the meal is estimated at from Rs. 14 
 to Rs. 36, per annum, the differences being due to the variation 
 in the prices of grain in the several districts and to the money 
 value of 'the grain consumed being calculated with reference 
 to the averaige prices ruling at the cusba stations instead of
 
 142 
 
 the prices ruling in the rural tracts. The general average 
 money value of the feeding charges of an adult labourer may 
 be taken for the Presidency at Rs. 20 per annum ; and (4) the 
 remuneration of a permanent farm- servant may, on an average, 
 be taken as twice the cost of his feeding and clothing 
 expenses. The practice in the northern parts of the Vizaga- 
 patam district, where, in the case of permanent servants fed 
 in the master's house, the remuneration is cut down to 
 one-half, clearly shows this. 
 
 The next class of agricultural labourers consists of those 
 who are engaged by the month or for the cultivation season. 
 In Coimbatore, labourers are employed by the month by ryots 
 who have dry or garden land to cultivate. These are called 
 padials and receive from 16 to 20 bullahs of grain, if men, 
 and 12 to 15, if boys, the money value being Rs. 2 to 
 Rs. 2-8-0, in the case of a man, and from 10 annas to Rs. 
 1-8-0 in the case of a boy. The padial is bound to give the 
 whole of his time to his master. The grain given is cumbu, 
 ragi or samai. A bullah is equal to two Madras measures 
 and a man's ration is ^ to f Madras measure or 1^ to 2 J lb. 
 If a ryot has a large farm the head padial is sometimes paid 
 25 bullahs — value Rs. 3. At the end of the term of hiring the 
 padial receives Rs. 2 or two cloths. The daily wages of the 
 labourer are thus between two and two-and-half times the 
 daily ration. The perquisites of a padial consist of a basketful 
 of corn at the time of cutting, which may consist of 8 bullahs 
 of grain valued at 1 rupee and a portion of any other crops, 
 the value amounting in all to Rs. 2. The wife of a padial, 
 if she works at the picking of cotton or harvesting of a crop, 
 gets a little more than ordinary women, who get one-eighth 
 of the pickings of cotton or a bullah of grain equivalent 
 to from 2 annas to 2^ annas. In Salem main division, the 
 monthly wages of an adult labourer vary from 18 to 24 
 vullums (each vuUum measuring SJ seers of 80 tolas each) 
 with a cash payment varying from Rs. 2^ to Rs. 3 at the end 
 of the year. In the Sub-division, the yearly wages vary 
 between 3 and 4 kandagams (187 seers of 80 tolas per 
 kandagam) and Rs. 4 or 5 at the end of the year. In the 
 Head Assistant's division, 112 seers of 80 tolas of cumbu or 
 varagu together with 5 annas per mensem are given. Taking 
 the quantity of grain required for each adult at 2 lb., the 
 grain wages are between two and two-and-half times an adult's 
 ration in the first case, and between three and four times 
 in the second and third cases. In the Nellore district, Giiddr 
 taluk, labourers are paid 2^ tooms of paddy per month or 
 4| seers or 6f lb. per day, 2 tooms in addition to one meal
 
 143 
 
 a day, or ^ toom of cumbu or ragi or jonna or 1 toom of 
 paddy per month in addition to two meals a day. The 
 labourers are further allowed straw for fodder and for roofing 
 purposes, some land free of rent for cultivation, loans without 
 interest, presents in grain or money on festive occasions, and 
 advance of pay on occasions of marriage or death in addition 
 to other gratuitous help. In the Kdvali taluk, Nellore district, 
 farm-servants are paid 2f seers of paddy or If seers of ragi 
 or cholum daily. Such labourers get — besides gleanings of 
 the threshing ground, which are estimated to amount to 15 
 tooms a year, worth Rs. 24-6-0 to Rs. 30 according as the 
 grain is paddy or ragi and cholam, one cumbli worth Rs. 
 1-8-0, and a pair of slippers. They also take, with the per- 
 mission of their masters, some bundles of hay or straw. The 
 total income is estimated as high as Rs. 60 per annum. In 
 Cuddapah, the yearly wages amount to -^36 Madras measures, 
 or nearly twice the daily ration. 
 
 The wages, above referred to, relate mostly to cases in 
 which the servants employed are of the Sudra castes. Where 
 the degraded castes, such as Pariars and Pullers, are employed, 
 especially in wet cultivation, the wages are considerably 
 lower. These castes were, till 1843, hereditary slaves sold 
 with the land or mortgaged. In Malabar, according to 
 Buchanan, Churmars were, in 1800, the absolute property of 
 their masters and could be employed on any work the masters 
 pleased, the only restriction being that a husband and wife 
 could not be sold separately. Buchanan adds, " The master 
 is considered as bound to give the slave a certain allowance 
 of provisions ; a man or woman, while capable of labour, 
 receives 2 edangallies (equivalent to 1| seers of 80 tolas) of 
 rice in the husk weekly, or two-seventh of the allowance, 
 which I consider as reasonable for persons of all ages included. 
 Children and old persons past labour get one-half only of this 
 pittance, and no allowance is made whatever for infants. 
 This would be totally inadequate to support them ; but the 
 slaves on each estate get one twenty-first part of the gross 
 produce in order to encourage them to care and industry. A 
 male slave annually gets 7 cubits of cloth and a woman 14 
 cubits. They erect for themselves huts that are little better 
 than large baskets." Both Messrs. Buchanan and Warden, 
 the Collector of the district, in the beginning of the century, 
 remark that, owing to ill-treatment and insufficient nourish- 
 ment for generations, the Churmars have become very diminu- 
 tive in si^e. Churmars are no longer slaves, but are treated 
 like other ordinary coolies. They receive 2 seers of 80 tolas 
 of paddy daily when they work for their masters, but when
 
 144 
 
 there is no work on the farms they are not maintained by 
 the masters and they are allowed to seek work elsewhere. 
 During the time of harvest fixed wages cease and the reapers 
 — men and women — are paid a share of the grain, generally 
 one-tenth ; in the southern part of the district it is stated 
 that as much as one-sixth is paid. The amount earned varies 
 according to the strength of the labourers, and is stated not 
 to exceed one or two rupees. They are allowed, however, 
 presents on special occasions and receive 2 parahs (7|- seers) 
 of paddy yearly, if they continue in the service of the masters. 
 On occasions of marriages and deaths, small presents are 
 made, and, during confinement of women, a small quantity of 
 oil and paddy, in addition to a daily subsistence allowance 
 for a period of 28 days, is granted. Their position, as regards 
 wages for subsistence, has, therefore, distinctly improved, 
 though they cannot be said to have, to an appreciable extent, 
 emerged from the position of social degradation which they 
 have occupied for ages. In South Canara, farm-servants (who 
 were originally slaves), if men, get from 1 to 2 seers of clean 
 rice, (80 tolas each) with condiments, the average rate being 
 1^ seer with condiments ; and women and children get less ; 
 the labourers are generally given a midday meal by the masters. 
 In addition to the daily wages, they receive annual perquisites 
 consisting of cloths and blankets, presents of rice and other 
 eatables at important festivals and for marriage purposes, and 
 they are given an allotment of rent free land from -I to |- acre 
 in extent, except on the coast of the Mangalore taluk. In 
 the Malay alam portion of the district, the alloXvances to the 
 farm-labourers do not appear to be so liberal, but, on the 
 whole, it seems to be clear that the farm-servants are in 
 good seasons well off in the sense that their food is not in- 
 sufficient for subsistence. Mr. Sturrock, who made careful 
 enquiries on the subject, estimates the annual income of a 
 labourer's family at Rs. 107 and the expenditure at Rs. 
 76, the greater portion of the balance being expended in 
 toddy. Buchanan, writing in 1801, stated that a male 
 slave was allowed daily 1^ hanies (2 seers) of rice or three- 
 fourths of the allowance for a hired servant. With reference 
 to this statement, Mr. Sturrock observes, " These rates cor- 
 respond rather with my maximum rates than with those I 
 have adopted as typical ; but Dr. Buchanan seems to have got 
 his information from the masters who would naturally mention 
 the highest rates allowed. In the preceding paragraph, he 
 remarks that the amount said to be paid in wages for trans- 
 planting rice seems to be exaggerated. With regard to hired 
 servants, whose wages are said to be higher than those of the
 
 145 
 
 slaves, Dr. Buchanan remarks, these wages are very high 
 and may enable the hired servants to keep the family in the 
 greatest abundance." In Tanjore the pannial, who is the 
 descendant of the old hereditary slave, was paid, according 
 to the account given by Mr. Ramaiyangar in 1872 (see ap- 
 pendix IV.-F)j one Madras measure of paddy per diem. The 
 present rate, from recent reports, appears to be 1| Madras 
 measures per diem and in the Kumbakdnam taluk it is even 
 If Madras measures. Mr. Pennington, in 1885, estimated 
 the whole earnings of a pannial at about 30 to 36 kalams of 
 paddy per annum, worth as many rupees; and stated that 
 the earnings of the whole family did not exceed Rs. 50, of 
 which Rs. 7-8-0 must be spent on drink or the enormous 
 toddy revenue of the Tanjore district (6^ lakhs of rupees) 
 could not be accounted for. In many of the taluks of the 
 district, they are allowed 40 gulis (*132 acre) for house- 
 site and 60 gulis ('198 acre) more, as yermanium or plough 
 allotment, for cultivation, the produce of which they enjoy 
 rent free. Mr. Pennington adds, " The comparative poverty 
 of the pannial class is attributed to their fondness for drink 
 and a want of prudence and forethought in storing up paddy 
 to provide against a rainy day. They are in fact the most 
 barbarous part of the community, and live precisely like 
 animals, being to all intents and purposes serfs attached to 
 the soil and generally of the Pariah caste, few being Sudras." 
 These remarks are, to a great extent, true, though their 
 condition, so far as mere physical subsistence is concerned, 
 has somewhat improved in recent years. Mr. Clerk, 
 who has made special inquiries into the condition of this 
 class of labourers, writes, '* In former times, the pannials 
 were the slaves of the mirasidars, on whom they depended 
 solely for livelihood. They were paid then as now in paddy 
 and, during the cultivation season, were well fed, but they 
 suffered considerably in the off-season from insufficiency of 
 food. Their position has greatly improved during the last 
 forty years, and, at the present time, they are as independent 
 of the mirasidars as the porakudis. It is beyond doubt that 
 wages have considerably risen during recent years. For 
 transplanting and harvesting, wages are double what they 
 were twenty years ago, and there has been an increase in the 
 price paid for cooly labour of every description. . . . Many 
 causes have tended to improve the condition of both tenants 
 and labourers within the last forty years, but the facilities 
 placed within their reach for emigrating have done more for 
 them th^n anything else. Both classes emigrate, though 
 chiefly the .labourers, and all return with considerable 
 
 19
 
 146 
 
 savings, by means of which the porakudi becomes a land- 
 holder and the labourer sets up as a tenant. The returns 
 show that, during the last ten years, 118,000 emigrants 
 embarked from Negapatam for the Straits Settlements, the 
 average number per annum during the last six years being 
 15,000. In addition to this, the poorer classes in the south 
 of the district emigrate in largfe numbers to Ceylon, but no 
 statistics are available to show their approximate number. 
 As proof, however, of considerable savings remitted by 
 emigrants from this part of the district, I am informed that 
 the money order transactions at the Post Office at Arantangi, 
 Patuk(5ta taluk, are larger than at the head office in Tan* 
 jore." In the South Arcot and Chingleput districts, pannials 
 do not seem to be as well off as in Tanjore. In the 
 Chingleput district, from Mr. Place's report, written in 1799, 
 it appears that the earnings of a pannial and his wife 
 averaged about 2^ kalams of paddy or 105 pucka seers of 80 
 tolas. Now their earnings amount to 45 measures or 67^ 
 pucka seers, and very little is given in the shape of perqui- 
 sites or extra allowances. This is rather surprising as one 
 would have expected that the vicinity of the town of Madras 
 and the demand for labour there would have forced up 
 wages. Further inquiries*'^ might show that the present rate 
 of wages assumed is under-estimated. In Tinnevelly, Mr. 
 Brandt, the Sub- Collector, in 1872, estimated the income of 
 a Pullan and his wife at Rs. 42 per annum and inferred 
 from this that, for a considerable part of the year, they 
 could not take a full meal at all. Mr. Puckle, the Collector, 
 who had much greater experience of the district was, how- 
 ever, of opinion that the position of the pullars and free 
 labourers of the district was remarkably good ; they were 
 better fed and clothed than similar classes in any of the 
 districts south of Madras, and their houses, as a rule, were 
 superior to, and very different from, the squalid huts that 
 were to be found elsewhere. 
 
 ^' The Madras Board of Revenue has, since the above was written, instituted, in con- 
 nection with the condition of the Pariahs in the Chingleput district, enquiries into the 
 wages paid to a Pariah agricultural labourer, and found that, including the harvest 
 perquisites, his average wages per mensem amounted to 8 merkals or 64 Madras 
 measures, or 96 pucka seers of paddy, against 105 seers in 1800 ; but the Board state that 
 from the latter fitrure a small dednction has to be made on account of the fees of 
 artificers, which were included in the original calculations. On this account the Board 
 made a deduction of 10 Madras merkals, nnd stated that the allowance in 1800 amounted 
 to 95 merkals a year, or about the quantity now earned. It further appears that the 
 8 Madras merkals above referred to are the lowest wages now paid, and that it is difficult 
 to get the labourers to accept them ; and that, owing to dearness of labour, the mirasidars 
 are compelled to be liberal in the matter of perquisites. The wages of "che labourer 
 and his wife are estimated at more than Us. 5 per mensem, exclusive of presents on 
 Occasions of marriages, feasts, &g.
 
 147 
 
 Casual labourers, who are employed as occasion arises, are 
 paid at higher rates than regular farm-servants, and, notwith- 
 standing the irregularity of employment, they appear to be 
 better off than the pannial class. In Coimbatore, according to 
 Mr. Nicholson, casual wages are from 1 to 3 measures daily 
 (3 to 9 lb.), varying with reference to season and demand — 
 quite high wages being paid at harvest. Women find work 
 for many months in the year on wet lands, from the collec- 
 tion of green manure to the work of harvest. There is less 
 to be done by them in gardens and still less on dry lands 
 except at harvest, especially that of cotton, the cost of 
 picking which is estimated at from one-twelfth to one-eighth 
 of the crop. Since the last famine, there has been a decided 
 increase in the money price of work in this district ; the 
 labouring class was largely affected by the famine and conse- 
 quently there is competition for labour especially in the 
 towns where labourers are hard to get. Mr. Nicholson 
 states that Wodders have even struck work on being refused 
 the rate of 12 cubic yards of easy earth-work, 20 being a 
 nominal rate. From 2 to 2^ annas per day for ordinary 
 unskilled male labourers and 1-| to 2 annas to females is 
 about the average. Hence a man and his wife can earn at 
 least S^ annas per day or the equivalent of 12 to 15 lb. of 
 dry grain in husk or 8 to 10 lb. without husk. When paid 
 in grain, the wages would amount to this quantity. For 
 well-digging, it is usual to pay the labourers chiefly in grain, 
 with an occasional sheep for the Wodders, money being 
 seldom paid by the regular ryot. Mr. Benson says of Kur- 
 nool, that the supply of labour is usually adequate to all 
 rural demands, but of late years the construction of the 
 Bellary-Kistna Railway has largely drawn on the supply and 
 forced up rates near the places through which it runs. Of 
 Bellary, Mr. Sabapathy Mudaliar (see appendix V.-F. (1 5)) 
 says : " This year (1890) the cotton and cholum crops having 
 been exceptionally favourable and cotton crops having ripened 
 simultaneously in almost every place, the labouring classes 
 were benefited thereby to an enormous extent. The wages 
 which were paid were three times as high as those ordinarily 
 paid before the current year." He adds that the increase in 
 the number of cotton presses has been the cause of giving 
 technical knowledge to numbers of male and female labourers 
 who are now able to earn exceptionally high wages, i.e., 
 Rs. 10 to Rs. 15 per mensem for a man and Rs. 6 to Rs. 10 
 for a wo;aian, who do work on the piece-work system. The 
 same remark applies more or less to the Tinnevelly district 
 also. In Tan j ore temporary coolies are employed by thQ
 
 148 
 
 landholders whenever they have more work than can be done 
 by their own servants, especially in times of reaping, digging 
 and levelling the fields. They are mostly employed by con- 
 tractors in road works and their daily wages are much higher 
 than those of Pannials — often double. 
 
 Among agricultural labourers, the highest class consists 
 of those who cultivate lands on the sharing system. These 
 labourers must be men of some means ; they must ordinarily 
 have at least ploughing cattle. The sharing system does not 
 prevail to any great extent in the dry districts, for instance, 
 in Anantapur. In the few places of this district in which it 
 prevails, the cultivator gets half the produce for mere labour 
 and when he contributes cattle, a still larger share. In 
 Bellary, the varum or cultivator's share is one-half ordinarily 
 and two-thirds where cultivation is expensive, as when water 
 has to be baled or land overgrown with long grass has to 
 be broken up. The cultivation expenses are borne by the 
 tenant and the landowner pays the assessment. In both 
 cases village servants' fees and the harvesting expenses are 
 deducted from the produce before division. If the land- 
 owner contributes half the seed, he takes half the straw. In 
 the Salem district the conditions are very similar. In some 
 cases where labour is not easily procurable, the produce is 
 equally divided after the cultivation expenses are deducted. 
 The cultivator also pays sometimes half the assessment, 
 getting three-fourths, or three- fifths of the produce, the 
 landlord paying the full assessment. Sometimes, again, the 
 arrangement is that the cultivator should take one-fourth or 
 one-fifth of the net produce plus a fixed quantity of grain. 
 In the case of irrigation by baling, the landlord's and culti" 
 vator's shares are two-fifths and three-fifths, respectively ; 
 the cost of seed and harvesting is shared equally. In the 
 Cuddapah sub- division and in the Kanigiri taluk of the 
 Nellore district, labourers who do not contribute anything 
 for cultivation expenses are given, what is called, half a 
 "bullock's share," that is, if the ryot has four bullocks, he 
 employs four servants and gives each servant one-eighth 
 share of the produce. The "pungal" system in the Pollachi 
 taluk of the Coimbatore district is somewhat similar. Buch- 
 anan describes the system as it existed in 1800 as follows. 
 The pungals go to a rich farmer and for a share of the crop 
 undertake to cultivate his lands. The farmer lends the 
 cattle, implements, seed and money or grain that^ may be 
 required for the subsistence of the puiigah. He also gives 
 each family a house. He takes no share in the labour which
 
 149 
 
 is all performed by the pungals and their wives and chil- 
 dren ; but he pays the rent out of his share on the division 
 of the crop which takes place when it is ripe. If a ryot 
 employs six pungals to cultivate his land, the produce is 
 divided into 15 portions which are distributed as follows : 
 to the ryot for Government assessment, seed, &c., 6 ; to the 
 ryot for profit 1 ; to the ryot for interest on money advanced 
 2; to the pungals 6; total 15. Out of their share, the 
 pungals must repay the ryot the money advanced for their 
 subsistence. The system as now practised is stated to be 
 the following : If the ryot employs a pungal to cultivate his 
 fields, it is only when the latter is able to contribute plough- 
 bullocks to some extent. The produce is divided into two 
 portions, of which one-half goes to the ryot as Nilavaram. 
 The remaining half is divided between the ryot and the 
 pungal according to the number of plough-bullocks contri- 
 buted by each. 
 
 In Tan j ore, the varum or porakudi system is extensively 
 prevalent. From Mr. Wallace's report, written in 1805, it 
 appears that in this district in 1,012 villages lands were 
 cultivated directly by the mirasidars, in 1898, lands were 
 cultivated on the sharing system and in the remaining 1,923 
 villages the cultivation was conducted under both systems. 
 The varum or share given to the porakudi varied from 22 to 
 30 per cent, of the gross produce. Under the Mahratta 
 Government, which took 60 per cent, of the gross produce 
 leaving only 40 per cent, to be divided between the mirasidar 
 and the porakudi, the share of the latter was as low as 15 
 per cent. The porakudi varum now varies between 20 and 
 50 per cent., the lower rates prevailing in the delta taluks 
 where crop is abundant and more or less assured, and the 
 higher rates in the upland taluks where the crop is pre- 
 carious. There can be no doubt that the position of the 
 porakudis has very considerably improved, several of them 
 having become landholders. Mr. Clerk observes " they are 
 beginning to realize the fact that they are masters of the 
 situation and can dictate their own terms to the mirasidars. 
 Of late years some of the porakudis have refused to cultivate 
 on the varum system, which gives to the mirasidar 75 per 
 cent, of the gross produce and have demanded a five or ten 
 years' lease at a fixed money rent. These terms have been 
 conceded by the mirasidars in favour of the tenants inasmuch 
 as the rents have been fixed on a basis of something like 65 
 per cent.' of the gross produce instead of 75." The records 
 of the Registration Department show that grain and money
 
 i60 
 
 leases are rapidly superseding cultivation on tlie sharing 
 system, and this proves that the porakudis are becoming 
 substantial farmers able to carry on cultivation without much 
 help from the landlords and to pay the stipulated rent in all 
 seasons. They are also enabled to enjoy the fruits of 
 additional labour bestowed on the cultivation of the lands 
 without having to share them with the landlords as under 
 the porakudi system. The same improvement, it will be seen 
 from the note of the District Registrar of Tinnevelly on the 
 agricultural classes, printed in the appendix, V.-F. (1 6), is 
 observable in the condition of the corresponding cultivating 
 class in that district also, many of whom have saved money 
 and bought landed properties; the general result being that, 
 while the rent receiving class is somewhat going down, the 
 cultivating class is rising gradually in importance. In the 
 Coimbatore district, where the sharing system obtains to a 
 considerable extent, the share of the landlord on dry lands is 
 now one-half the gross produce instead of as in 1839 one-half 
 of the net produce after deducting the expenses of cultiva- 
 tion. In the South Canara and Malabar districts, the varum 
 system does not obtain, lands being leased out to tenants on 
 fixed money and produce rents. 
 
 60. Labourers, other than agricultural, are chiefly em- 
 ployed in towns, and their condition has 
 II. Labourers other (Jigtinctlv improved. The ratcs of waffes 
 
 than agricultural. t *^ n ^ i -n j i i t . 
 
 per diem lor unskilled labour, according to 
 the official returns, vary from 1 anna 9 pies in Vizagapatam 
 to 7 annas 4 pies in Kurnool. The average rate in towns for 
 the whole Presidency is 3 annas 9 pies, while that in rural 
 tracts is 2 annas 9 pies. The rate for Madras town is, 
 however, only 4 annas, and the high rate in Kurnool is 
 evidently due to the recent opening of the Bellary-Kistna 
 railway. Employment is fairly constant and an unskilled 
 labourer in towns may be taken on an average to earn 3 annas 
 per diem throughout the year, while the labourer in rural 
 tracts earns about 2 annas. The establishment of mills, the 
 extension of railways, the increase of trade and the large 
 expenditure, by Government on roads and irrigation works, 
 and by private individuals on buildings, have forced up 
 wages both in inland and sea-port towns, as labour is much in 
 demand at these places. Among the higher classes, it is a 
 well-known fact that domestic servants, especially cooks and 
 water-carriers, are hard to get, and their wages, in addition 
 to food, have increased to three times of what tiiey were 
 thirty or forty years ago.
 
 151 
 
 61. In the preceding paragraphs I have endeavoured to 
 In what directions g^^^ ^uch particulars as I have been able 
 the labouring classes to obtain regarding the wages of agri- 
 have improved. cultural and Other labour;^' It would, of 
 
 course, be hopeless to attempt to state in exact numerical 
 proportions the improvement in wages for the reasons 
 already explained. Money values are fallacious guides in 
 this respect, and it is impossible to assign money values to 
 perquisites which are allowed on special and not regularly 
 recurring occasions, and are regulated by customary usages 
 and the good understanding between the employers and the 
 employed, rather than by contract. If it is necessary to sum 
 up, in a single statement, the remuneration that is allowed 
 in such a wide variety of forms, I should say that 2 annas 
 
 '" Since the memorandum was written, above 7,000 service agreements, both for 
 agricultural and non-agricultural labour, registered in the several registration offices of 
 the Presidency, were examined and enquiries made as to the changes which have occur- 
 red in grain-wages. It was found that there has been nowhere any reduction in the 
 customary wages paid for agricultural labour. The labourers generally receive advances 
 from then- employers varying from Rs. 10 to upwards of Rs. 100, and agi-ee to serve for 
 some definite period or till the loan is re-paid. No interest is charged, except in special 
 cases, on the loans. The loans are to be liquidated either by means of small deductions 
 from the wages, or at the end of the period of service by a lump payment. 
 
 For agricultural labour, the wages are given in money, in kind, or in food and clothing 
 with a small cash payment at the end of the year. The money paj^ment ranges from 
 Rs. 18 to Rs. 60 a year. The average may be taken at from Rs. 30 to Rs. 36. The 
 quantity paid in grain varies from 20 to 60 Madras measures a month, according to the 
 age and efficiency of the labourer, a midday meal being generally provided by the em- 
 ployer ; the average quantity may be taken at about 36 or 37 Madras measures a month, 
 or 1;^ Madras measures a day. When food is given the labourers are paid from Rs. 3 to 
 Rs. 30 at the end of the year. 
 
 For non-agricultural labour, the wages of goldsmiths, blacksmiths and carpenters vary 
 from Rs. 4 to Rs. 30 a month. 
 
 For tanning, which is a large industry in this Presidency, and in which, from religious 
 scruples, none but the Pariahs are engaged, the wages are nowhere less than Rs. 5 per 
 mensem. If paid daily the wages are 3| annas. The maximum wages are Rs. 10 a 
 month. 
 
 Brahmin cooks receive from Rs. 4 to 7 a month in addition to food. 
 
 Shop-boys are paid from Rs. 4 to Rs. 15 a month. 
 
 The tendency everywhere appears to be for an increase in grain wages, and the 
 complaints often made are that it is difficult to obtain labourers for the due customary 
 rates of wages or to make them work with zeal or full time as in the old days for these 
 wages. There is, of course, great reluctance on the part of the employers to alter the 
 customary rates ; but perquisites and presents and the amounts of loans given without 
 interest are generally increased. The grain wages given for casual labourer, e.g., 
 additional labour employed during harvest, appear to have generally increased, and in 
 some cases doubled. The tendency towards increase in the i-ates of daily grain-wages 
 allowed to field hands permanently employed is less marked, though there are a number 
 of instances in which there has been an increase even as regards these. This shows 
 that custom is gradually giving way to competition, and that the tendency on the whole 
 is towards an increase in the earnings of labourers as estimated in food-gi-ains. 
 
 Since the memorandum was written, H. Subbaraya Aiyar, Esq., Deputy Collector, 
 Coimbatore district, has made personal enquiries into the condition of the labouring 
 classes in parts of the Coimbatore district, and the conclusion he has arrived at is, that 
 theii' condition " is not what it was thirty or forty years ago, but has materially 
 
 improved in several respects Those who have once formed 
 
 the landless cJfe-ss, the petty traders, the artizans and the weavers, who have chosen to 
 work in the fields and elsewhere, have now acquired landed property to some extent, 
 " ^'ide appendix V.-F. (1 b).
 
 152 
 
 per diem all through the year, or a little more than twice the 
 value of his daily ration in grain, may be taken as the 
 average wages of an adult labourer. Servants of the degraded 
 castes, such as Pariahs and Pallars, probably get 25 per 
 cent, less, as they are not allowed to enter the houses of the 
 ryots and attend to cattle and other household work, while 
 other servants, to whom the objection does not apply, pro- 
 bably get 25 per cent. more. Taking the labouring classes as 
 a whole, the improvement in their condition in recent years is 
 manifested, not in any clearly visible rise in the standard of 
 living of the lowest grades or in the comforts that they 
 enjoy, but in the fact of a considerable proportion of the 
 labourers, who, under the old conditions, would have remained 
 in the lowest grade, having been drafted into the next higher 
 grade, while a portion of the latter has gone into the grade 
 which is next higher, and so on. Thus, a percentage of 
 labourers of the pannial class, as will be seen from Mr. Clerk's 
 account, has gone into the grade of porakudies, and a cou- 
 siderable percentage of porakudies has gone into the class of 
 tenants, paying definite rents in cash or kind, while a portion 
 of the latter has acquired landed property and become 
 puttadars. Confining our attention to the lowest classes — 
 the Pariahs and the Pallars — one would hardly be inclined 
 to believe that their condition could, at any time, have 
 possibly been worse than it is at present, but there is no 
 doubt that this was the case. The statistics, compiled in the 
 Census ofiice and kindly furnished to me by Mr. H. A. Stu- 
 art, show that, in the three districts of Tanjore, Chingleput 
 and South Arcot, in which these classes are found in large 
 numbers, a considerable proportion possesses landed pro- 
 perty. In Tanjore, the Pallar and Pariah population, 
 according to the recent census, comprises 567,700 persons; 
 of these, 2-1,600 persons, or 6 per cent, of the families, 
 taking 5 persons to a family, possess land. In the Chingleput 
 and South Arcot districts, the Pallar population is altogether 
 insignificant. In the former district, of the Pariah popula- 
 tion amounting to 310,000, 38,900 persons, or 12 per cent, 
 of the families possess land. In the South Arcot district 
 the number of possessors of landed property is very consider- 
 able, being 196,600 out of a population of 583,000, or 33 per 
 cent, of the families. As regards the landless labourers, all 
 the measures of Government during the last forty or fifty 
 years have tended to ameliorate the condition of the lowest 
 down-trodden classes so far as it is in the power of laws or 
 administrative arrangements to do so ; and in this respect 
 the policy pursued by the Indian Government has been more
 
 153 
 
 liberal than that in force in '^ England itself till within very 
 recent times. Agricultural slavery, which, in this country, 
 originated mostly in voluntary contract, was abolished in 
 1844, and labourers declared to be free to carry their labour 
 where they pleased or to emigrate without being subjected to 
 any harassing restrictions, such as those in force in Russia, 
 for instance, where no peasant is allowed to travel 30 miles 
 from his own commune without observing irksome formalities 
 and paying from 7s. to 10s. for a passport. Labourers freely 
 emigrate to Burma, the Straits Settlements, Ceylon, Mauritius 
 and the West Indies, and as Mr. Clerk, the Settlement OflQcer 
 in Tanjore, points out, very often labourers who have re- 
 ceived advances or loans from landholders "do take their 
 departure without payment." The labourers are now quite 
 aware that the higher classes dare not molest them, and the 
 abolition of the system of corvee or compulsory labour on 
 Government works has taken away all excuse for doing so. 
 The abolition of torture, as one of the recognised methods of 
 enforcing discipline, of collecting the revenue or detecting 
 crime, and the severity with which violations of the law in 
 this respect have been punished, have clearly demonstrated 
 to the landholders that the employment of the old coercive 
 methods in the exaction of work will not be tolerated by 
 Government, and that labourers might be coaxed to remain 
 in their service, but not compelled to do so. The non-recog- 
 nition of class distinctions and the special privileges claimed 
 by mirasidars to keep the lower classes out of the occupation 
 of land, and the uniform treatment accorded to all puttadars, 
 whether recent occupants or ancient mirasidars, in all ad- 
 ministrative arrangements have raised the position of the 
 lower classes, if they have somewhat depressed that of the 
 higher classes. Numbers among the Pariah population have 
 enlisted as sepoys, and several have found employment in 
 the domestic establishments of Europeans as cooks, nurses, 
 horsekeepers, gardeners, &c., and also in factories, plantations 
 and railways. Missionary agencies have also done this class 
 invaluable service by establishing schools and by teaching 
 them to live, whenever their circumstances would permit of it, 
 in a more respectable manner than they have been accustomed 
 to do for ages, and by interceding for their protection and 
 advocating their cause whenever there is any real or fancied 
 danger of their being oppressed by the classes above them. 
 
 " The statute of labourers, the statute of apprentices and a multitude of laws 
 against comleinations of workmen were all enacted in England in the interest of capi- 
 talists. The last remnants of combination laws were abolished only in 1875, and they 
 were enforced wiih considerable severity so recently as 1844, 
 
 20
 
 154 
 
 I am informed that forty or fifty years ago, in some parts of 
 the country, landholders used to have two measures, one of 
 the usual capacity for ordinary transactions, and the other, 
 a somewhat smaller one, for measuring out wages to the 
 labourers who were thus cheated out of a part of their 
 customary dues. This infamous practice has now, I believe, 
 been completely discontinued. Further amelioration of the 
 condition of this class must be the outcome of educational 
 agencies employed in connection with missionary enterprise ; 
 and indeed, the best thing that can happen to them is con- 
 version to either the Christian or the Muhammadan religion, 
 for there is no hope for them within the pale '''^ of Hinduism, 
 the ordinances of which originated in a state of things in 
 which it was necessary for a small minority of colonists of 
 a superior race, with a view to prevent their civilization from 
 becoming swamped by the surrounding barbarism, to con- 
 struct " moral barriers," which would absolutely prevent 
 fusion of races. The lower classes themselves are finding 
 out this and the work of conversion is proceeding apace in 
 some parts of the Presidency, for instance, in Tinnevelly, 
 Nellore, Kistna and Malabar. Mr. Mclver, in the census 
 report of 1881, writes : " The extensive conversion to 
 Muhammadanism of the lower castes of Hindus in Malabar 
 has, for some years, been a matter of notoriety. The social 
 distinctions created by caste are very marked in parts of the 
 West Coast districts, and some of the lower castes occupy a 
 very degraded position. The advantages which Moplahs or 
 Hindu-sprung Mussulmans enjoy in this respect are obvious 
 enough, and this seems at last to have dawned on the lower 
 caste Hindus. The Moplahs were willing to receive them, 
 and the work has of late years thriven." The increase of 
 the Muhammadan population of Malabar in the decade ending 
 1881 was 12 "3, while the increase in the total population 
 was only 3'4 per cent. The Anglican missionaries in Tinne- 
 velly, and the Baptists in Kistna and Nellore, made large 
 additions to their followers in the ten years ending 1881, the 
 increase in the Christian population in the three districts in 
 that decade being 37*4, 371*9 and 590*4 per cent., res- 
 pectively, while there was an increase in the total population 
 of Tinnevelly and Kistna of only 0*34 and 662 per cent., 
 respectively, and a decrease in Nellore of 11*4 per cent, on 
 
 '^ An attempt wag mafle by certain philanthropic Hindu gentlemen in Mysore, under 
 the inspiration of the late Mr. C. Runga Gharlu, to organize a system of teaching for 
 the Pariah population, in order that some impression might be made o» the dense 
 ignorance and grpvelling superstition of this class. The attempt, however, altogether 
 failed, _
 
 155 
 
 account of the famine of 1876-78. As soon as a person of 
 the lowest classes of the Hindu population is converted either 
 to the Christian or the Muharamadan religion, he emerges at 
 a bound from his position of social degradation, and is ac- 
 knowledged by persons belonging to the higher classes to have 
 doee so ; and he often turns the tables against the latter by 
 calling them " Kafirs" or "Heathens." It is also noteworthy 
 to what extent the removal of the social stigma of degradation 
 stimulates the industrial activity of the classes who have 
 been relieved of it. The Moplahs of Malabar, for instance, 
 are far more active, enterprising and well to do than the 
 classes of the Hindus from whom they have seceded. The 
 work of conversion, however, can only proceed pari passu 
 with the improvement in the material condition of the lower 
 classes of which it is both a consequence and a cause ; for, 
 convey.-ion implies a desire to live a more respectable life on 
 the paft of the degraded classes than what they have been 
 accustomed to, and the means for doing so must be within 
 reach before the desire is felt. As regards the further 
 amelioration of the condition of the Pariah population, which 
 has recently excited so much public attention, it seems to me 
 that it would be erroneous to assume that they are worse ofP 
 now than they were fifty years ago, or that they are oppressed 
 by the landholders. On the contrary, they are distinctly 
 better off than before in the sense that they have a great 
 many more opportunities of bettering their condition than 
 were available under the old regime, and of which an appreci- 
 able percentage of the class has actually availed itself. There 
 is, however, still a large class which, though somewhat better 
 than before, is in a deplorably miserable and degraded con- 
 dition, and its amelioration must, as already observed, be 
 brought about by educational agencies ; and it is in this 
 direction that the efforts of Government should be directed, 
 and not, as is sometimes advocated, to the procuring of bene- 
 fits to the labouring classes at the expense of the land-owning 
 classes which can only have the effect of introducing among 
 the two classes, so necessary to one another, a spirit of 
 mutual hostility similar to what is growing up in England 
 to the injury of both. There is one hopeful feature in the 
 situation, viz., that the Pariahs, notwithstanding centuries of 
 social degradation, are singularly docile, attached to their 
 masters, amenable to instruction and not unintelligent ; and 
 there can be little doubt but that a great deal may be made 
 of them and that their improvement is not such a difficult or 
 hopeless 'undertaking as one might be inclined to think when 
 one sees their present degraded condition in the rural parts,
 
 156 
 
 When we compare the smart intelligent looking servant in an 
 Anglo- Indian household with the " Pannial " who, in point 
 of intelligence, does not, to all appearance, compare very 
 favorably with the cattle he tends, we should be hardly in- 
 clined to suspect that the two belong to the same class of the 
 population. Pariahs who serve as sepoys in the Indian army 
 have the reputation of being the best of the recruits from 
 the population of Southern India. 
 
 62. Among the propertied classes, the military classes, 
 and more especially the Poligars who used 
 
 es^^Jthrr^than^S- tO lead plundering expeditions, have be- 
 holders, mercantile and come peaceful landholders, and, as such, 
 
 professional classes. imji i ^ nj. j v. j.1. 
 
 while they have benented by the rise m 
 the profits of landed property, they have lost their old power 
 and influence. Referring to the Poligars and the robber 
 castes of the Tinnevelly District, Bishop Caldwell says : 
 " Of the many beneficial changes that have taken place, one 
 of the most remarkable is that which we see in the Poligars 
 themselves. The Poligar has become a Zemindar, and has 
 changed his nature as well as his name. One can scarcely 
 believe it possible that the peaceful Nayaka and Marava 
 Zemindars of the present day are the lineal descendants 
 of those turbulent and apparently untameable chiefs, of whose 
 deeds of violence and daring the history of the last century 
 is so full. One asks also, can it really be true that the 
 peaceful Nayaka ryots of the present day are the lineal 
 descendants of those fierce retainers of the Poligars who were 
 so ready, at the merest word of their chief, to shed either 
 their own blood or that of their chiefs' enemies ? The change 
 wrought amongst the poorer classes is not perhaps so complete, 
 but many of them have merged their traditional occupation 
 of watchmen in the safer and more reputable occupation 
 of husbandmen, and it may fairly be said of the majority of 
 the members of the caste that though once the terror of the 
 country, they are now as amenable to law and reason aa any 
 other classes." The only question is whether, under the 
 Roman peace established by the British Raj, the transforma- 
 tion above described is not too complete, and whether, while 
 the suppression of the power of lawless chiefs and their 
 retainers was, at the outset, undoubtedly the first condition 
 of civilized government and general progress, the time has 
 not now arrived for finding some means of utilizing the 
 waning martial spirit of these classes, before it is completely 
 crushed out, for purposes of the defence of the country in the 
 hour of trial, when every available resource may have to be 
 strained to the utmost. The problem is certainly a difficult
 
 157 
 
 one, but it cannot be that British statesmanship will be 
 unable to find a solution, more especially as steps have 
 been already taken for rendering the armies maintained by 
 Native States effective for purposes of Imperial defence. 
 Whether it might not be possible to introduce some plan by 
 which the bigger Zemindars, whose estates are as large as 
 small kingdoms, might be entrusted with the duty of training 
 a certain number of militia-men to be kept as a kind of 
 reserve for purposes of Police and internal defence in times 
 of danger, under strict supervision and adequate guarantees 
 for good behaviour, it is not competent for lay men to decide ; 
 they can only note the necessity for something being done in 
 this direction. Meanwhile, the entire closure of the military 
 career to the junior members of Hindu and Muhammadan 
 families of high rank and military reputation, and the neces- 
 sity imposed on all of them to obtain a living entirely out of 
 the landed estates of the heads of their families which do 
 not grow with the growth in their numbers, or to enter a 
 civil profession for which they may have no special apti- 
 tudes, is a serious drawback from the point of view of that 
 many-sided development which is an essential condition of 
 the economic progress of the country. 
 
 Another class, which has suffered under the present regime, 
 consists of the favourites and minions of Native chiefs who 
 had fattened on the substance of the poor and are now no 
 longer allowed to do so. It is the existence of this class, to 
 some extent, that gives the capital cities of Native States an 
 appearance of greater wealth and prosperity than is the case 
 in the cities of British territory, where wealth is more dif- 
 fused and less concentrated in particular localities. The town 
 of Tanjore is an instance. Though the Rajah of Tanjore was 
 relieved of the administration of that province in the begin- 
 ning of the century, he was paid annually for over half a 
 century one-fifth of its revenues for the maintenance of his 
 court besides a fixed allowance of three and a half lakhs, and 
 all this money was spent within that single town. Thousands 
 of families lived on his bounty ; palatial buildings sprang up 
 in various parts of the town, and music and painting and 
 other arts, which minister to the pleasures of a luxurious 
 court, flourished. When the Raj became extinct, misfortune 
 overtook the thousands of families of unproductive consumers 
 who had not been bred in any useful occupation, and the 
 town has not yet recovered from the blow, while the other 
 towns in the district have greatly increased in size and 
 wealth. The ruined buildings in the Tanjore town no doubt
 
 168 
 
 attest its former magnificence, and place in strong relief 
 its present decayed condition as a centre of wealth ; but in 
 point of fact, industrially speaking, the town is not now, 
 probably, in a less flourishing condition than it was ever 
 before. 
 
 A third class, which has increased in numbers, but has 
 lost in individual share of the wealth of the country, consists 
 of the Native bankers, sowkars and banias. Formerly, 
 there was no security for property except in the capital 
 cities and their vicinity, and all the wealth was found con- 
 centrated there. A few men, who were in favour with the 
 chiefs, monopolised all the banking business of the country, 
 issued bills of exchange (or hundis), and cashed them, and 
 thus made colossal fortunes like the " Navakoti Naraina 
 Chetti " of the Hindu tales. Their association with the 
 ruling chiefs, whose necessities they fed, gave them immense 
 power, and though they were themselves sometimes plundered, 
 as for instance, when Hyder levied a contribution of 70 
 lakhs of rupees from the bankers of Mysore, they had great 
 opportunities of enriching themselves by altering the rates 
 of exchange for coins, of which large numbers were current. 
 According to Mr. Grant (1787), Zemindars and others had 
 to offer as security " teeps " or promissory notes of sowkars, 
 or other moneyed men, for about two-thirds of the revenue 
 of the tracts of country farmed out by Government to them. 
 Mr. White, a member of the Council of the Governor of Fort 
 St. George, in 1793, mentions that, by the low value fixed on 
 copper currency and the tricks of the sowkars in altering 
 the rate of exchange, the poor cultivators were defrauded of 
 a great part of the wages of their daily labour, that the shroffs 
 used to raise or lower, in a few days, by combination, the 
 rates of exchange by 10 or 15 per cent., and that the evil 
 had operated, in a material degree, to depopulate the country 
 during the famine which had then occurred.'^ The account 
 given by Tavernier as to the rates of discount on bills of 
 
 ''^ Mr. Warden, the Collector of Malabar, mentions a curious arrangement about 
 the farming of kaas (copper coins) which was in force at Palghat in 1801. He says, 
 " The person farming the coinage fixes his own particular stamp upon the new kaas, 
 which he intends coining and circulating for the period of his lease which is limited 
 to one year. The introduction of the new kaas takes place in the Malabar month of 
 Chingum (part of August and September), at which time it is sold for 22 kaas the 
 Veray fanam, and continues at this price till the month of Makaram (January and 
 Februarj'), in which month, there being a fair in one of the villages of the country (at 
 which an immense concourse of people assemble), the farmer attends it with his kaas 
 and disposes of tliem at the rate of 24 to the fanam, after which the price decreases 
 in proportion to the demand there might be in the bazaar, till the latter end of 
 Khumbum (beginning of March), in which month another fair happens, when the 
 farmer disposes of his kaas at 26 or 28 the fanam. The sale or exchange'of kaas, after 
 the conclusion of this fair, becomes free and common to all, and the new and old kaas
 
 159 
 
 exchange issued by Indian bankers will show how their 
 gains were made up. The rates of exchange for goods 
 payable at Surat within two months were at Lahore on Surat, 
 6^ per cent. ; Agra 1 to 1 J per cent. ; Sironj 3 per cent. ; 
 Burhanpore 2^ to 3 per cent. ; Dacca 10 per cent. ; Patna 7 
 to 8 per cent.; Benares 6 per cent.; Golconda from 4 to 5 
 per cent. ; Goa from 4 to 5 per cent. ; Deccan 3 per cent. ; 
 Bijapur 3 per cent. ; and Dowlatabad 1 to 1^ per cent. 
 Tavernier adds " In some years the exchange rises 1 to 2 per 
 cent., where there are Rajahs or petty tributary princes, who 
 interfere with trade, each claiming that the goods ought to 
 traverse his territory and pay him custom. There are two 
 in particular between Agra and Ahmedabad, one of whom 
 is the Rajah of Antawar (Danta or Dantewar), and the other 
 the Rajah of Bergam (possibly Wungaon), who disturb the 
 merchants much in reference to this matter. One may, 
 however, avoid passing the territories of these two princes by 
 taking another route, from Agra and Surat by way of Sironj 
 and Burhanpore ; but these are fertile lands, intersected 
 by several rivers, the greater number of which are without 
 bridges and without boats, and it is impossible to pass until 
 two months after the rainy season. It is for this reason 
 that the merchants, who have to be at Surat in the season 
 for going to sea, generally take their way through the country 
 of these two Rajahs, because they are able to traverse it at 
 all seasons, even in the time of the rains, which consolidate 
 the sand with which the whole country is covered. Besides, 
 it is not to be wondered at that the exchange is so high, 
 for those who lend the money run, for their part, the risk 
 that if the goods are stolen the money is lost to them." 
 Tavernier' s remarks illustrate the difficulties which trade 
 had to contend with owing to the general insecurity of 
 property in the country and the absence of easy communica- 
 tions, and they further show how it was possible for a few 
 merchants and bankers to accumulate enormous wealth at the 
 
 indiscriminately pass at one and the same value. During the period that the restraint 
 continues, viz., from Chingum to Khnmbnm (seven months), every person wishing 
 to exchange a fanam in the bazaar is required to receive it from the farmer at the price 
 at which his kaas might be current at the time. His own kaas is to be the only one 
 current at the bazaar during the above period ; and all the old kaas (those coined in 
 the years preceding, although their intrinsic value is the same with, and often better 
 than, that of the new) are bought up by the farmer at the rate of 150 old to 100 new, 
 and he is at liberty to take them wherever he can find them passing in the bazaar, and 
 give his own kaas in exchange at the above rate. These old kaas he either recoins 
 anew or reserves them till the month of Khumbum, when old and new passing without 
 distinction he disposes of the former, which he got before at 50 per cent, discount, at 
 their real or what may be their current value in the bazaar, which is from 36 to 38 to a 
 fanam. Besides the above privileges, he has that of levying a kaas daily from every 
 shop that may be open in the bazaar. This is an institution which has been of very 
 old standing and not one of late introduction."
 
 160 
 
 expense of the general community. We thus learn that the 
 banking firm of Jaggat Sait, of Moorshedabad, was plundered, 
 during the Mahratta invasion of 1742 of specie to the amount 
 of 2^ millions sterling. Trade in the old days was, in fact, one 
 of peril and adventure and restricted to a few individuals, 
 who reaped enormous profits, which were sometimes expended 
 in the construction of alms-houses and temples, caravansaries, 
 roads and bridges. All this is now changed. The exten- 
 sion of the security of property to all parts of the country, 
 the adoption of a uniform currency, the introduction of the 
 money order system and of currency notes and State banks 
 and the creation of a public stock in which money can be 
 invested with perfect security, have rendered it now impossible 
 for the money-lending classes to make the enormous gains 
 which they did in former times. Their loss, in this respect, 
 however, is as nothing compared with the immense gain to 
 the public resulting from the decentralization of money and 
 capital, increased conveniences for the transfer of money, and 
 the more secure investment of savings. The vabie of the 
 money orders now issued at trifling cost amounts annually 
 to 12 millions Rx for the whole of India, and 1-3 million 
 Rx for the Madras Presidency ; the bank notes in circulation 
 amount to 16 millions and 2 millions respectively. The 
 deposits in the saving's banks have also increased from 0*4 
 miUions Rx in 1857-58 to 6*9 millions Rx in 1889-90 for the 
 whole of India. There can be no doubt, however, that with 
 the increase of trade and the growth of a money economy, 
 money-lending classes have increased, in large numbers and 
 spread all through the country instead of being confined to 
 the towns. According to the returns of income-tax for the 
 year 1890-91, there were in this Presidency 14,621 money- 
 lenders with incomes exceeding Rs. 500 per annum. There 
 is no means of forming an estimate of petty money-lenders 
 with less income than Rs. 500. The tax paid by the for- 
 mer class amounted to nearly Rs. 3,59,000, and the income 
 assessed may be estimated at 1'6 millions Rx. The income is 
 not large as compared with incomes in European countries, 
 but it is much larger than was the case formerly in this 
 country, and, being made up of smaller profits than before, 
 denotes increased activity of trade. 
 
 Other mercantile and trading classes have increased 
 largely in numbers and are in a prosperous condition, owing 
 to the development of trade of which a full account has 
 already been given. As in the case of money-lenders, the 
 income of this class is made up of small gains in a large 
 number of transactions and not by large profits in a small
 
 i6i 
 
 number of transactions. This is a wholesome change, for, 
 as has been pertinently observed, the advantages of trade can 
 no more be measured by the gains of individual traders than 
 the advantages of learning by the salaries of schoolmasters. 
 The gains of traders represent the sacrifice incurred for 
 securing the advantages of trade, and the less the sacrifice 
 and the more the volume of trade, the greater the advantage 
 to the general community. 
 
 Among the learned professions, the official classes have 
 also increased in numbers, owing especially to the increased 
 activity of Local Fund administration. Barristers, vakils and 
 other legal practitioners are rising into importance. Accord- 
 ing to the income-tax returns the income assessed, that is, of 
 legal practitioners who get not less than Rs. 500 per annum 
 is about 26 lakhs of rupees. 1,034 persons get an income of 
 nearly 10 lakhs of rupees and 267 persons an income of 16 lakhs 
 of rupees. Of the latter, 47 persons, with an income of about 
 6 lakhs, reside in the Presidency town, and 220 persons, 
 with an income of 10 lakhs, reside in the mofussil stations. 
 
 63. Among the artizan classes, the decline of hand-loom 
 weavers has already been referred to. 
 All handicrafts patronized by native 
 courts, such as painting, manufacture of articles of luxury, 
 pith-work, &c., have disappeared with those courts. This 
 change is due not so much to the competition of European 
 manufactures as to revolution in taste. The decline of indig- 
 enous arts is certainly a matter for regret, but it is a small 
 factor in the present economic condition of the country. As 
 regards cotton hand-loom manufactures, Mr. T. N. Muk- 
 harji, in his Art Manufactures of India, says : " Notwith- 
 standing the extent of their present production, cotton 
 manufactures in the old style are in their last gasp. The 
 few small pieces of wood and bamboo tied with shreds of 
 twine and thread, which the weaver calls his loom, and 
 which he can as easily make himself as buy from his 
 neighbour, the village carpenter, can no more compete with 
 the powerful machinery than a village cart of Western 
 Bengal can run a race with the ' Flvino; Scotchman.' Yet 
 the wonder is that cotton fabrics can still be manufactured 
 with the old primitive loom all over the country. In one 
 sense, it is a misfortune that it should be so ; for it shows 
 the low value of human labour in India. Machinery, with all 
 its modern improvements, seems to contend in vain with a 
 moribund industry, that must linger on as long as the 
 worker in itf has nothing more to do than to produce from 
 
 21
 
 it M. a day as the joint earnings of himself, his wife, a boy 
 and a girl. Those that wield the machinery should lay their 
 heads together and devise means to teach the people how 
 better to employ their hands in other crafts. Another reason 
 why Indian looms can still compete with Lancashire goods 
 is that the European process of manufacture has not yet 
 been able to give the fabrics that strengh for which native 
 manufactures have a reputation. Nor has machinery yet 
 been able to make those gossamer fabrics for which a 
 wealthy Indian always paid a fabulous price." In the 
 present stage of industrial development it is the useful and 
 not the artistic and ornamental that is likely to be sought 
 after in this country, and it is perhaps right that this should 
 be so. When the whole community was divided into two 
 sections, one consisting of a few individuals enormously rich 
 and living entirely on the produce of the labour of the other 
 consisting of an immense mass of the population in abject 
 poverty whose property and even life were completely at 
 their mercy, there was room for the existence of a class of 
 handicraftsmen who could obtain a living by manufacturing 
 articles of luxury. Now the greater diffusion of wealth and 
 the decline of the classes who patronized them have rendered 
 it necessary that these artizans should turn their attention 
 to the manufacture of such articles as are in general demand 
 among the population. When wealth increases and a class 
 of merchant princes such as mark a high and not a low stage 
 of industrial and commercial development springs up, there 
 will again arise a demand for articles of luxury, though not 
 necessarily of the old type. 
 
 The condition of black-smiths, brass-smiths, gold-smiths, 
 carpenters and masons is very prosperous, owing to the 
 demand for jewels, for substantial houses and for metal 
 vessels which are coming into general use. The cheapened 
 cost of metal including gold and silver, has created the 
 demand for metal vessels and jewels. Since 1850, about 
 140 millions sterling worth of gold and a still larger value 
 of silver have been imported into the country, and this great 
 influx of the precious metals provides sufficient occupation 
 for gold -smiths. The wages of artizans generally, as will be 
 seen from the statement of wages printed in the appendix 
 V.-F. (h), have greatly risen. Of the Coimbatore District, 
 Mr. Nicholson remarks that town wages are very high ; higher 
 indeed, considering the efficiency of the workman, than in 
 England. Irrespective of the quantity of work, the food pur- 
 chasing power of the wages of skilled labour in towns is 
 quite equal to that of similar wages in England, where
 
 163 
 
 money is much cheaper and the artizan's wants much more 
 numerous, owing to the cold and damp climate and other 
 demands. Ordinary carpenters can, with their daily wages, 
 buy about 20 or 22 lb. of dry grain free of all husk (30 to 
 33 lb. with the husk). As the artizan's sons work with him, 
 and as work is plentiful and the caste a small one, he is 
 well off. Tables and chairs, which are coming into use 
 among the educated classes, have afforded increased employ- 
 ment to carpenters, while they have affected prejudicially the 
 carpet -weaving industry. Another noticeable feature in the 
 present situation is the gradual rise of the capital artizan 
 who, to some extent, turns out finished products in his 
 factory and sells them, instead of merely fashioning the 
 materials supplied to him by persons in need of the articles 
 and receiving the wages of labour. 
 
 64. The best means of finding out whether the economic 
 condition of the country has improved or 
 The standard of ^qj^ jg ^q enquire whether the standard of 
 living has risen or not among all but the 
 lowest classes of labourers who practically live from hand- 
 to-mouth. There is ample evidence that this has been the 
 case.^"* On this point I have obtained the opinions of a 
 number of gentlemen who have had exceptional opportunities 
 of forming an intelligent and trustworthy opinion as to the 
 condition of landowners in different parts of the country at 
 the present time as compared with their condition in the old 
 days. The facts stated in the previous portions of this 
 memorandum place it beyond doubt that the vast majority of 
 landowners were in a state of abject poverty amounting to 
 almost destitution fifty years ago. In this connection refer- 
 
 '^ The following extract from a recent report of the Commissioners of Public Debt 
 on the condition of European Turkey (written by Mr. Vincent Caillard, the English 
 Commissioner), will show what are the symptoms of a real deterioration in the economic 
 condition of the masses of the population. " The peasant, in the interior, has reduced his 
 wants to their simplest expression, and signs are to hand which show him to be less and 
 less able to purchase the few necessaries he requires. For instance, a few years ago in 
 many decent peasant households copper cooking utensils were to be seen. Now they 
 are scarcely to be found, and they have been sold to meet the pressing needs of the 
 moment. Their place has been taken by clay utensils, and, in the case of the more 
 affluent, by iron. The peasant's chief expenses lie in his women folk, who require 
 print stuffs for their dresses and linen for their under-clothing, but of these he gets 
 as little as possible, since as often as not, he cannot pay for them. This smallness of 
 margin is one of the reasons why the amount of importation increases so slowly. The 
 peasant hardly ever pays for his purchases in cash ; what little he has goes in taxes. 
 He effects his purchases by barter. Another significant sign is the increase of brigan- 
 dage which has taken place. New bands of brigands are continually springing up ; 
 reports from the interior are ever bringing to our knowledge some fresh acts of violent 
 robbery. This simply means that men, desperately poor and refusing to starve, take 
 to brigandag'e as a means of living." It will be observed that in Southern India, so far 
 as the conditions of the present differ from the past, the change has taken place in 
 exactly the reverSe direction to what has occurred in European Turkey.
 
 164 
 
 ence should be made in particular to the description of the 
 income and the ways of living of even the richer ryots given 
 by Mr. Bourdillon, whose account is printed in the appendix 
 III.-B. It is true that there is a considerable portion of the 
 ryot class which still answers to Mr. Bourdillon' s descrip- 
 tion, but it is also true that there is a class — a daily increasing 
 one — which seeks and enjoys more comforts. This is evi- 
 denced in various ways. The number of houses as shown by 
 the last census has increased in a greater ratio than the popu- 
 lation ; and tiled and terraced houses are superseding the old 
 thatched cottages. Better clothing, especially of elegant and 
 costly kinds for women, has come into ordinary use among the 
 higher classes in most districts, and in the Southern districts 
 women of the present day will not, as Mr. Seshaiyar, Profes- 
 sor of the Kumbakonam College, observes,'^ even look at the 
 coarse clothing which their grandmothers wore. In the richer 
 families servants for doing the menial work are being more 
 largely employed than before. Much larger quantities of gold 
 and silver jewels are now worn. Metal vessels have, to a very 
 large extent, taken the place of earthen vessels, even among the 
 lower classes, and rice is becoming a part of the ordinary diet 
 of the classes which, in former days, would have used it as a 
 luxury on special festive occasions. A great deal of money 
 is being spent on the education of children. The money 
 expended in school-fees for a single boy would formerly have 
 sufficed to maintain two adults. It is true, at the same time, 
 that everybody feels that his means are inadequate to the 
 satisfaction of his wants, but this is not because his means 
 have not increased, but because his wants have increased in a 
 greater ratio. Formerly, none but the richest would have 
 dreamt of giving collegiate education to their children. Now 
 persons with very small means wish to educate their sons 
 and make great sacrifices for this purpose. Sometimes the 
 sons turn out well, but occasionally they do not, and, in the 
 latter case, great is the suffering inflicted on the parents. 
 Nevertheless, the general effect, both on the parents and the 
 sons, of this state of things, is very beneficial. Formerly, the 
 father would have pinched himself and saved to leave his 
 children property for subsistence. Now he saves to give 
 them education leaving them to earn their living. Indeed, 
 the benefits of education are so much appreciated that even if 
 the father be not willing to educate his children, the mother 
 insists on its being done. Liids who have been educated 
 and who have passed University examinations are., so much 
 
 " Vide appendix V,-F. (I 2).
 
 165 
 
 sought after by parents as suitable husbands for their 
 daughters that they command a high price in the matri- 
 monial market. The followicg extracts from the report of 
 the Bengal Salaries Commission, 1886, describing the rise in 
 the standard of livino; amono: the oflBcial and other classes in 
 that province, might almost, word for word, be taken as 
 accurately portraying the condition of things in tlie more 
 advanced districts in this Presidency : 
 
 *' We find it quite impossible to arrive at any definite 
 conclusion as to the actual cost of marriages, because our 
 informants' statements vary so much one from the other. 
 It seems, however, that the marriage of a son does not, as a 
 rule, cost so very much more than it did in old days ; indeed, 
 some people tell us that a father may even gain by his son's 
 marriage. It is a strange bub undoubted fact that acade- 
 mical distinctions command a very high price in the matri- 
 monial market, a youth who has several ' Vniversity passes ' 
 being regarded as a very desirable parti and having to be 
 highly paid to induce him to bestow his hand in marriage. 
 It would also seem that ' Kulinism,' or the practice of 
 marrying a daughter to a man of the very highest section of 
 one's caste, and paying a large sum for the honour of having 
 so exalted a son-in-law, is dying out in proportion as acade- 
 mical honours and the success in life to which they lead are 
 more and more valued. In either case, however, the cost of 
 getting a daughter married is very heavy, and at times is 
 even ruinous, to men of limited means, such as are most of 
 the ministerial officers ; and the spread of education, so far 
 from having led to more reasonable practices, seems rather to 
 have exercised a contrary influence 
 
 " Native ladies and children also now wear more cloths 
 than formerly. Although, for obvious reasons, we cannot 
 go deeply into this delicate subject, we have ample evidence 
 to show that both in material, fashion, and ornamentation, 
 female clothing is more costly than before. Children also, 
 who even in respectable families wore no cloths at all during 
 their early years, are now often clothed in expensive gar- 
 ments. It must not, however, be forgotten that some articles 
 of clothing are cheaper than formerly, such as those made of 
 English piece-goods and the like. It is doubtful how far this 
 cheapness counterbalances the increased outlay caused by a 
 love of finery. 
 
 " Under the head of dress comes the important question 
 of jeweli'y. This also, we think, must always have formed a 
 serious item, in Indian domestic economy, because, in days
 
 166 
 
 when life and property were unsafe, a man usually invested 
 his gains and savings in jewelry and gold and silver orna- 
 ments for his women. These could be buried in the ground 
 in time of danger or sold to procure funds in time of distress. 
 It seems therefore probable that the increase of expenditure 
 under this head will be found rather in more exquisite work- 
 manship, the greater use of precious stones, and more valu- 
 able materials generally, than in the greater number of 
 articles worn by native ladies. On this subject, one of the 
 gentlemen, already quoted, writes as follows : ' It would be 
 tedious to enumerate the different items of jewelry ; simple 
 gold is now despised and a profusion of precious stones is 
 considered indispensable. A lady in the class of society to 
 which I belong would be considered poorly adorned on three 
 thousand rupees. Five thousand would be nearer the 
 mark. ' 
 
 " With the progress of knowledge and science the old 
 system of native medicine with its charms, incantations and 
 other superstitions is fast dying out, and resort is freely had 
 to the European method of treatment. The good derived 
 from this change is great and ])alpable, and no man be- 
 grudges even heavy expenditure to save the lives of himself or 
 his family. Many, however, look back, with some regret, to 
 the native system, which, whatever its failings, was remark- 
 ably cheap. There was no such thing as the settled daily 
 fee of a physician, much less a fee for each visit. The 
 remuneration of a native physician (kabiraj) generally de- 
 pended on the pecuniary means of the patient. For ordinary 
 cases requiring three or four days' treatment, a fee of a 
 couple of rupees, including the price of medicine, was 
 considered fair for a family man whose income was Rs. 20 
 or Rs. 30 per mensem ; at the present time and under the 
 altered system, four times the sum would meet the require- 
 ments of such a case. In mofussil stations the amla class 
 suffer great distress owing to their inability, for want of 
 means, to obtain good medical advice and medicine for their 
 family and children." 
 
 There can be no doubt that the higher and middle classes 
 live much more respectably than in the old days, and, as 
 there is nothing in the present regime to sj)ecially favour these 
 classes, and, as there are no such sharp differences in wealth 
 between the several grades of society as exist in European 
 countries, the rise in the standard of living above noticed 
 may be taken as an index of general prosperity. - The rise 
 in the standard of living is sometimes very erroneously attri-
 
 167 
 
 buted to the diffusion of habits of extravagance. A sudden 
 increase of prosperity before a taste for rational modes of 
 enjoyment is developed, no doubt, gives rise to extravagant 
 unproductive expenditure in particular directions, as was the 
 case during the years of the cotton famine when the ryots, 
 especially in the Bombay Presidency, reaped enormous profits 
 which were spent on marriages and festivals with the result 
 that, when the profits ceased, the inevitable crash soon fol- 
 lowed. Then the ryots learnt a lesson which will not soon 
 be forgotten. I know that in the Tanjore district there has 
 been a wholesome change in recent years in this respect, less 
 being now spent on marriages and show on special occasions 
 and more on education and substantial comforts. The slow 
 rise in the standard of living, such as has been observable of 
 late years, cannot be the result of formation of habits of 
 extravagance, for large sections of society cannot continue 
 to live well, unless they have the means to do so. " An 
 interesting German writer," says Professor Cliffe Leslie, "has 
 reproduced one of the popular theories of Elizabeth's reign 
 — that luxury, ostentation, and expensive habits among all 
 classes are the causes of the modern dearness of living, and 
 not the abundance of money. There cannot, however, be 
 more money spent, if people have no more to spend than 
 before. A mere change in the ideas and desires of society 
 would add nothing to the number of pieces of money, and 
 could not affect the sum total of the pieces. If more money 
 were spent upon houses, furniture, and show, less would 
 remain, if pecuniary means were not increased, to be spent 
 upon labour and food, and the substantial necessaries of life ; 
 and if the former became dearer, the latter would at the 
 same time become cheaper. But, when people have really 
 more money than formerly to spend, they naturally spend 
 more than they formerly did, and their unaccustomed expend- 
 iture is considered excessive and extravagant. And, when 
 an increase in the pecuniary incomes of large classes arises 
 from, or accompanies, greater commercial activity and general 
 progress, there commonly is a general taste for a better or 
 more costly style of living than there was at a lower stage of 
 society. There is always, it is true, much folly and vanity 
 in human expenditure ; and masses of men do not become 
 philosophers of a sudden because they are making more 
 money. But their state is improving on the whole when 
 their trade is increasing, and the value of their produce rising 
 to a level, with that of the most forward communities, and 
 when the lowest classes are breaking the shackles of bar* 
 barous custom, and furnishing life with better accommoda-
 
 168 
 
 tion than servile and ignorant boors could appreciate." 
 These remarks are, to a great extent, applicable to the trans- 
 formation that is taking place in this country among the 
 higher classes and to some slight degree among the lower 
 classes of the population also. The desire to live in a 
 respectable manner, to give a good education to their sons, 
 to procure greater comforts, and it may be more expensive 
 jewels for their wives, and to marry their daughters to young 
 men who have received an English education and who will 
 not treat them merely in the light of household drudges 
 have compelled many men, who, under the old conditions, 
 would never have thought of leaving the neighbourhood of 
 their villages, to proceed to distant parts of the Presidency 
 in search of a competence. Even the mania for makingf 
 jewels is not without its good side. It is quite as legitimate, 
 if less refined, a mode of enjoyment as costly furniture, dress 
 equipage, horses and dogs. The difference between the two 
 methods of enjoyment lies in the fact that in the latter case 
 the superfluities which constitute articles of luxury bear a 
 smaller proportion to the capital devoted to production than 
 in the former. Though the standard of living among the 
 higher and middle classes in this country has risen, it is as 
 yet nothing like what it is in European countries, and it 
 ought to rise much higher if India is to attain to the same 
 rank as European nations in industrial development. What 
 is it that makes a ryot in the Ceded Districts or in Ganjam 
 so liable to suffer distress when there is even a partial 
 failure of crops ? In the former district it is the capricious- 
 ness of the seasons and the low standard of living, and in the 
 latter, isolation from the other parts of the country by want 
 of communications and the low standard of living, that is the 
 cause of the ryot's poverty and helpless condition. In coun- 
 tries in which people have very few wants and can live 
 cheaply, the population increases up to the limits of bare 
 subsistence, and, when a failure of seasons or other causes 
 diminish in the least degree their resources, they are deprived 
 of food and die off in large numbers. 
 
 65. Notwithstanding the great increase in population 
 during the last decade, there is no reason 
 Pressure of popuia- to suppose that the population has as yet 
 begun to press on the land in any part of 
 the Presidency to such an extent as to cause any deterioration 
 in the standard of living to which any class has hitherto 
 been accustomed. The districts in which population is the 
 densest are also districts in which all classes of the popula- 
 tion, not excepting even the lowest, are, comparatively
 
 169 
 
 speaking, the most prosperous, while districts in which popu- 
 lation is sparse are those in which the major part of it lives 
 from hand-to-mouth. Tanjore, with a population as dense 
 as 600 persons to the square mile, is a typical instance of 
 districts of the former class, and Anantapur and Kurnool, 
 with 134 and 109 persons, respectively, are examples of the 
 latter. In Tanjore, as we have already seen, the real wages 
 of agricultural labourers have considerably risen, and their 
 condition has distinctly improved. The rate of increase of 
 population in this district during the last decade, viz., 4'5 
 per cent., is no doubt very low as compared with the general 
 rate for the whole Presidency, amounting to 15*5 per cent., 
 but the reason for this is to be found not in insufficiency of 
 the means of subsistence, but in emigration caused by the 
 higher remuneration for labour obtainable in Ceylon, the 
 Straits Settlements, Burma, West Indies, &c. From the 
 emigration returns it appears that the loss of population due 
 to emigration, from 18th February 1881 to 26th February 
 1891, amounts to 97,237 persons, and if this number be 
 added to the population as ascertained by the census of 1891, 
 the real rate of increase in the Tanjore district will come 
 out as 9'1 per cent., or double the rate shown by the census. 
 It must also be remembered that, as emigrants are generally 
 male adults, the effect of emigration on the birth-rates, calcu- 
 lated with reference to the whole population, is to depress 
 the rates, while the effect of famine mortahty, which falls 
 heaviest on the old and the young, .sparing mostly adults of 
 the productive ages, is exactly the reverse. Thus the 97,000 
 emigrants, though forming only 4*5 per cent, of the total 
 population, bear the proportion of 18 per cent, to the adult 
 male population between the ages of 15 and 50, or, in other 
 words, the reduction in the birth-rate due to emigration, 
 assuming it to have operated throughout the ten years, may 
 be taken at nearly one-fifth. The death-rates must also 
 show an apparent increase in consequence of the larger 
 proportion of the juvenile and aged persons left in the 
 population, among whom the mortality, even under normal 
 conditions, is heavy. In no district, so far as is known, is 
 there any marked redundancy of labour in normal years, and, 
 since the last famine, there is a deficiency of it in several 
 districts. Even in a densely-peopled district like Yizaga- 
 patam, with 452 persons to the square mile, it has been found 
 necessary to import thousands of labourers from such a great 
 distance as the Punjab, for the construction of the East 
 Coast Railway, local labour not being procurable at anything 
 like reasonable rates. The same difficulty was felt in the 
 
 22
 
 170 
 
 Kurnool and Kistna districts when the Bellary-Kistna Rail- 
 way was under construction, large numbers of labourers 
 having had to be imported from Poona in the Bombay Presi- 
 dency. In Tanjore diflBculty is now felt in finding labour for 
 the construction of the Mayavaram-Mutupet Railway. There 
 are many tracts, even in the river-irrigated parts of the 
 Nellore and Kistna districts, where the extension of irrigation 
 is held in check, owing to the paucity of labourers for carry- 
 ing on cultivation. On the whole, therefore, it seems clear 
 that it is not so much the pressure of population as the 
 precariousness of the seasons, which keeps down the econo- 
 mic condition of the ryots, especially in the districts situated 
 on the tableland between the Eastern and the Western Gh§-ts. 
 The Kurnool district contains a population of about 818,000 
 persons. The area of ryotwar land under occupation is 
 about 1,135,000 acres, and the extent of inam lands is 906,000 
 acres or 2 millions in all. This gives on an average 2^ 
 acres per head of the population. The average assessment 
 of ryotwar land is nearly 1 rupee per acre corresponding 
 to an outturn in dry grains, after deducting 25 per cent, on 
 account of vicissitudes of seasons, of 600 lb. or 10 bushels 
 according to the settlement calculations. Allowing even as 
 much as IJ lb. per head of men, women and children — a very 
 high all-round-rate — the produce of one acre per head ought 
 to be sufficient to feed the entire population, leaving 1-| acre 
 per head for seed, for fallows, for purchasing the other 
 necessaries of life such as clothing and condiments and for 
 payment of Government revenue. There is besides an addi- 
 tional acre per head of inferior land assessed at 8 annas 10 
 pies available for occupation, and there is very great scope 
 for extension of irrigation under the Cuddapah- Kurnool 
 canal, should intensive cultivation in the form of application 
 of irrigation in those sparsely-populated tracts become neces- 
 sary. The Anantapur district, which is the driest and the 
 poorest in the Presidency, contains a population of 708,000 
 persons. The area of ryotwar land under occupation is 
 933,000 acres, besides inam lands 608,000 acres, or about 1^ 
 million acres in all, which gives rather more than 2 acres per 
 head. The poverty of the soil is shown by the fact that the 
 average assessment is only 10 annas, while the average for 
 the whole Presidency is 1 rupee. The ryot's condition is 
 consequently more precarious in this district than in Kurnool. 
 Nevertheless, even here the outturn in all normal years is 
 more than sufficient to feed the population. There is a large 
 area of unoccupied land amounting to 1 acre per head of 
 the population, available for cultivation. The ayerage assess-
 
 171 
 
 ment of this land is 11 annas 6 pies, and it is therefore pre- 
 sumably not inferior in quality to the land now under 
 occupation. This shows that the poverty of the district and 
 the low condition of the population are due to the precarious- 
 ness of the seasons and sterile soil, and that the state of 
 things was just the same or even worse when the population 
 was only one-half of what it is now. It must at the same 
 time be admitted that, while it is undoubtedly true that the 
 population has not so far trenched upon the meaas of sub- 
 sistence, it is equally true that if the population increases in 
 anything like the rate at which it has been doing during the 
 last ten years without not only a corresponding increase in the 
 productive powers of lands but also in habits of thrift and pru- 
 dence among the ryots themselves, every effort to ameliorate 
 the condition of the masses must sisyphus-like end where it 
 began. During the last ten years, there is no doubt that pro- 
 duction has increased in a greater ratio than the population 
 by the extension of irrigation as is evidenced by the fact 
 that, while the land revenue demand prior to 1876 was about 
 450 lakhs, it is now 490 lakhs, or 40 lakhs in excess, inclu- 
 sive of allowances to Hindu religious institutions deducted 
 from the beriz or the demand. Of these 40 lakhs, only about 
 5 lakhs represent the increase due to enhancement of the 
 settlement rates, the remainder being due either to extension 
 of irrigation or to cultivation of superior soils which has 
 become profitable owing to the opening up of remote tracts 
 by means of communications. The land revenue is also 
 collected with the greatest ease; the area of land sold for 
 arrears of revenue is hardly 1 per cent, of the total area of 
 holdings, and the greater portion of such lands as are sold are 
 generally those on the margin of cultivation, which are taken 
 up by the ryots or relinquished at their pleasure. Till before 
 the last two years the ryots of the greater portion of the 
 Presidency had a run of good seasons, and the creditable self- 
 reliance which they have shown under the adverse circum- 
 stances of the last two years affords satisfactory proof of the 
 fact that their position has materially improved. Their 
 resources, however, have been already strained a great deal, 
 and another bad season next year may bring them down, and 
 we can only hope that this may not occur. The Government 
 has already now done nearly all that it is possible for it to do 
 in the way of extending irrigational facilities and opening 
 up the country by the extension of railways and other com- 
 munications. When the Periyar project is completed, more 
 than 100,000 acres in the Madura district will be efficiently 
 irrigated, and the Meliir taluk, notoriously the poorest taluk
 
 172 
 
 in the district containing a predatory population, which derives 
 its subsistence more from other tracts than from its own soil, 
 Y*^ill be protected to a considerable extent from droughts which 
 now occur almost every second year. The Kushikulya irri- 
 gation project will add another 100,000 acres of permanently- 
 irrigated land to the food-producing area of the country. 
 The tank restoration scheme which is under execution, and 
 which has almost removed the chronic complaint about the 
 neglect of irrigation works will improve the yield of lands 
 now under cultivation. The large numbers of wells for 
 irrigation, which have been excavated with advances granted 
 by Government under the Land Improvement Loans Acts on 
 very favorable terms, have also been the means of protecting 
 arid tracts from partial droughts. The East Coast Railway 
 will bring the very fertile and sparse-populated country of 
 Jeypore within reach of the crowded parts of the Presidency 
 to the advantage of both and be the means of lisfhtenine: the 
 pressure of population on the latter. It is sometimes asked, 
 how can railways prevent famines? The answer is simple. 
 Railways, by distributing the produce of tracts where the 
 harvest has been abundant in tracts where it has been scanty, 
 give value to produce which would have been wasted or been 
 allowed to rot for want of an outlet and thus mitigate the 
 effects of scarcity ; and they bring fertile regions shut off 
 from the rest of the country by want of communications 
 within easy reach of congested tracts. Tlie idea of bring- 
 ing labourers from Poena to work on the Bellary-Kistna 
 Railway and from the Punjab to work on the East Coast 
 Railway would, for instance, have been scouted as absurd by 
 even the wildest visionary in the pre-railway period. Above 
 all, railways by equalizing prices and by preventing sudden 
 and violent alternations in the condition of the masses, who 
 are at one time gorged with plentiful means of subsistence 
 and soon after suffer the direst distress — a state of things 
 most fatal to self-reliance — have rendered the creation of the 
 habits of forethought and prudence possible. Life has been 
 made somewhat harder than before to the poorest landless 
 classes in times of plenty when the pressure is not severe, 
 while, to the cultivating and landowning classes who form 
 the bulk of the population, the means are made available of 
 accumulating savings; and, in times of scarcity, when the 
 pressure on the landless classes might be expected to be 
 severe, the burden is lightened. Doubtless, when parts of the 
 country, which have hitherto been isolated from other tracts, 
 are suddenly placed in communication with the Tatter, the 
 result often is a feeling that they are denuded, of food sup-
 
 173 
 
 plies wliicli are required for their own use. This feeling 
 soon wears away, and when these parts suffer in their turn 
 from scarcity, the effects of which are mitigated bj supplies 
 derived from other regions, the advantages of communications 
 become at once manifest. I suppose this has been the case 
 with Kurnool, where the season of 1890 was excellent, but 
 the surplus produce was drawn off by the surrounding dis- 
 tressed tracts, the new railway assisting in the transport of 
 grain. In 1891, when the crop failed in the Kurnool district 
 itself, there were no stores of grain to fall back upon, and 
 the result was that the population was taken by surprise. 
 I believe the recent distress and riots must have, in a great 
 measure, been due to this cause. As regards the moral 
 benefits conferred by railways, it is sufficient to say that they 
 are of even greater importance in stimulating the intelli- 
 gence of a hitherto inert and stay-at-home population and 
 removing provincial prejudices, than schools and Universities. 
 A orreat deal, then, has been done by Government indirectly 
 to improve the position of the agrricultural classes. What 
 remains to be done is, as Mr. Nicholson has put it in his 
 excellent report on the economic condition of the Anantapur 
 district, '* to attack the ryot himself directly and to bring to 
 bear on him the force of education in agriculture and rural 
 economy." The situation is not a hopeless one ; and Sir 
 James Caird, a Member of the Famine Commission, who 
 devoted considerable attention to the investigation of the 
 agricultural conditions of the Presidency, has told us, *'it is 
 possible to obtain such a gradual increase of production in 
 India as would meet the present rate of increase of population 
 for a considerable time. One bushel per acre gained gradu- 
 ally in a period of ten years, in addition to a moderate 
 reclamation of cultivable land, would meet the demand of the 
 present growth of population. Considering the generally fer- 
 tile nature of the soil, and that in most parts of India two 
 crops can be got in the year, this would seem to be a possible 
 result. By these two methods, wisely combined, the increase 
 of population may be safely provided for several generations. 
 The attainment of this will be vastly increased by committing 
 to each province the responsibility of the operations necessary 
 for its own success and of enlisting the active assistance of 
 the most capable native officials, municipalities and land- 
 owners in the work. " The increase of production has, 
 however, its limits, and for a permanent marked improve- 
 ment in the standard of living^ and the sreneral condition of 
 the masses, a change in the national habits in regard to early 
 marriages is* a necessary requisite. I have already in my
 
 174 
 
 remarks on the increase of population alluded to the difficul- 
 ties in this respect. We can only hope that, as institutions 
 and practices, which not very long ago appeared as immov- 
 able as the everlasting hills, have been undergoing transform- 
 ation, the difficulties referred to will, in the course of the 
 next half a century, disappear. Meanwhile, the lower classes, 
 to whom the difficulties are not applicable, will have an 
 advantage over the higher classes. 
 
 66. After what has been stated above, it is hardly neces- 
 sary to say much on the question which 
 tion^of the^'^^opSXon engaged the attention of the Government 
 live on insufficient food Qf India two vcars ago, viz., " whether the 
 
 in ordinary seasons r , '',. n .-i ^ j • rv 
 
 greater proportion oi the population suner 
 from a daily insufficiency of food." It is exceedingly difficult 
 to give a categorical answer to a question of this kind without 
 having a definite idea as to what is meant by insufficiency 
 of food. As to certain broad facts, however, there can be 
 no doubt. The population is mainly agricultural and a consi- 
 derable portion miserably poor, not in the sense of wanting 
 the means of subsistence in ordinary seasons according to the 
 standard which the conditions of climate and resulting 
 national habits formed in the course of ages have established, 
 but in the sense of being without resources to fall back upon 
 when adverse seasons appear in succession. That standard 
 includes little more than the barest necessaries of hfe, the 
 secondary wants being few ; and, when adverse seasons occur, 
 there is a section of the population which has to reduce its 
 rations and live partly on wild fruits and such other inex- 
 pensive food as can be picked up on the way side. This class 
 forms the lowest stratum of the population and its condition 
 has been desci'ibed by Mr. Turner, the Collector of Vizaga- 
 patam, in the following terms. He says that the people of 
 this class " require very little tamarind and curry powder, as 
 they live mainly on cunji. This requires much salt to make 
 it palatable. They use, as relish, onions and green chillies, 
 which they procure from the farm or otherwise without 
 buying. They generally consume ragi or cumbu or such 
 other inferior grains as their employers disburse to them as 
 wages. During the season when the palmyra bears fruit, 
 they for the most part live on these fruits which they can, 
 to a large extent, get gratis. In the mango fruit season they 
 collect the wind-fallen young fruit and boil and use it for 
 one substantial meal at least. At other times they live on 
 sweet potatoes. They buy no fuel. The female members 
 and children pick up here and there the droppings of cattle 
 and dry twigs and leaves of trees and utilize -the same as
 
 175 
 
 firewood." This class can tide over one or two bad seasons, 
 provided the failure of crop is not general. In all ordinary 
 seasons deaths by starvation are almost unknown, and there 
 is no lack of work to the labouring classes. The old and 
 infirm are supported by their kinsmen or by spontaneous 
 charity and not left to starve, a striking contrast to the state 
 of things in England, where recent inquiries into the condi- 
 tion of the poor have brought to light the fact that of men 
 and women above the age of 65 years not less than 40 per 
 cent, have to choose between starvation and resort to the 
 poor-house. Curiously enough too, it is not in the districts 
 m which famine is unknown, as for instance Malabar and 
 Tanjore, that the lower classes of the population have the 
 strongest physique, but in districts like Kurnool and Ananta- 
 pur. Whether this is due to the dry climate of the latter 
 districts or to the superiority of dry grains which form the 
 staple food in these districts over rice, it is difficult to say. 
 It is noteworthy, however, that these districts contain many 
 malarious tracts, and rice in popular estimation is richer food 
 than dry grains. Inferences based on calculations of money 
 values of earnings of labourers and cost of food in rural 
 tracbs are apt to be very fallacious. In his analysis of the 
 agricultural statistics of the Kurnool district, Mr. Benson 
 remarks that " the whole aspect of the figures is that a vast 
 majority of the ryots in most parts of the district lead a life 
 of poverty, and must, at all times, be but little removed from 
 a state of * short commons.' Nevertheless, whilst observa- 
 tion confirms the general aspect of poverty, still it also 
 shows that the people do not in their appearance record any 
 signs of being in a chronic state of semi- starvation." Again, 
 after describing the dwellings of the poorer classes of ryots 
 as ill-lighted, undrained, un ventilated, dirty and uncleaned, 
 and not water-tight — furnaces in the hot weather and stifling 
 blackholes in the cold, — he goes on to state that " it' is 
 wonderful how the people manage to exist in them, and 
 develope a large proportion of fine men,^^ Mr. Nicholson says 
 much the same as regards the lowest class of labourers in the 
 Anantapur district. According to him the people are not 
 of weak physique. They are sturdy and well set up, the 
 poorest classes, viz., Boyas, being particularly " lusty." The 
 ordinary ryot is a favourable specimen of a man physically, 
 and the general impression given by the appearance of the 
 people is that of a good physique and ability to bear toil. 
 Rickety children are scarce, and deformed and idiotic chil- 
 dren are* especially few. The last census shows a notable 
 decrease in the number of blind and insane persons and of
 
 176 
 
 those suffering from leprosy. In seasons where there is only 
 a partial failure of crops, the classes who suffer and who are 
 inured to privation show a strong dislike to avail themselves 
 of the relief afforded by Government works. When there is 
 a failure of crops for two or three seasons in succession over 
 large areas of country simultaneously, the resources of even 
 the better classes of labourers and ryots become exhausted, 
 and in the dry districts almost half the population may 
 succumb to the calamity as was the case in 1876 and 1877. 
 The conclusions then may be stated as follows : (1) The 
 great majority of the population is very poor when judged 
 by a European standard ; (2) compared with the condition 
 of the people fifty years ago, as shown by the accounts given 
 by Sir Thomas Munro, Mr. Eussel, Sir Henry Montgomery, 
 Mr. Bourdillon and others, whose statements have been refer- 
 red to in a previous portion of this memorandum, there has 
 certainly been improvement in the material condition of the 
 population, the advance consisting mainly in a rise in the 
 standard of living of the upper strata of society, and a reduc- 
 tion in the percentage which the lowest grades bear to the 
 total population ; (3) the very lowest classes still live a hand- 
 to-mouth existence, but not being congregated in towns, they 
 have a better physique than one would expect to find in them, 
 considering their resourcelessness and the frequency of crop 
 failures on which occasions they have to pick up a scanty sub- 
 sistence as best they can ; and (4) the economic condition of 
 the country, as a whole, though improving, is at best a low 
 one, and is such as to tax the energies and statesmanship of 
 government to the utmost in devising suitable remedies for 
 its amelioration. 
 
 67. As comparisons are often instituted between the 
 value of trade, average income, &c., per 
 
 Comparison of the , jrii ix'-tj- itt' 
 
 econonuc condition of head 01 the population m India and huro- 
 india with that of peau couutries, and inferences are drawn 
 
 European countries. i, « ,1.1 i i_- j-.- £ 
 
 thereirom as to the relative condition or 
 the masses of the population in these countries, it may be 
 worth while to enquire how far these comparisons are legiti* 
 mate, and subject to what qualifications the inferences based 
 on them may be accepted. 
 
 First, as regards the value of trade : The foreign trade 
 of India in 1890-91 amounted to 6*8 rupees, or, say, less 
 than 14s. per head of the population. The trade of England 
 in 1884 was £19 and even of Russia £1'3 per head. That 
 as a commercial country England is immensely ahead of 
 India or any other country goes without saying, but the 
 relative importance of any two countries cannot be gauged
 
 177 
 
 simply by comparing the values of foreign trade per head of 
 the population, without taking the size of the countries and 
 the omitted factor of their internal trade into account. For 
 instance, Holland has a trade of £34 per head, or nearly 
 double the rate for England, and from this it does not follow 
 that its maritime greatness is twice that of England. India 
 in point of size is as big as Europe without Russia, and if 
 Europe minus Russia were treated as one country and its 
 foreign trade were alone considered, that is to say, if the 
 trade of Russia with other European countries and the trade 
 of European countries other than Russia with non-European 
 countries were alone taken into account, the value of trade 
 per head of the population would come out very small. The 
 Madras Presidency by itself is one-sixth larger in point of 
 size than the United Kingdom, and its external trade by sea 
 amounts to 18s. per head of the population. There is 
 besides a large land trade with other provinces, including 
 Native States. The distinction, in fact, between foreign and 
 domestic trade is itself an artificial and accidental one. For 
 instance, the trade of Tuticorin with Ceylon or Pondicherry 
 is foreign trade; its trade with Calcutta or Rangoon is 
 domestic trade ; and for commercial purposes, England itself 
 is, or at all events was until railways were constructed, more 
 accessible than the Punjab. This being so, it is the aggre- 
 gate of foreign and domestic trade, and not the foreign trade 
 considered by itself, that is important for the purpose for 
 which comparisons of this kind are instituted. Another fact 
 to bfe borne in mind in judging of the increase of prosperity 
 of a country from the increase in the money- value of trade is 
 the change in the purchasing power of money. So far as 
 India is concerned, the purchasing power of money has 
 fallen, and, therefore, the increase in the money-value of 
 trade does not represent a proportionate increase in the 
 volume of the commodities exchanged. Nevertheless, as 
 already pointed out, the producer in India now realizes for 
 his produce a larger value than he did in 1850 and obtains 
 his imported articles much cheaper, that is, by giving a 
 smaller quantity of his own articles in exchange, and conse- 
 quently his gain has probably not been less than what it 
 would have been if the volume had increased in proportion 
 to the money- value of trade, the purchasing power of money 
 itself remaining stationary. 
 
 Secondly, as regards the total income of the country and 
 the share of it per head of the population : The total 
 income of the United Kingdom has been estimated at 1,247 
 
 23
 
 Its 
 
 million £, of France at 965 millions, of Russia at 848 mil- 
 lions and of Spain at 218 millions, the share per head of the 
 population being £35*2, 25'7, 10*1 and 11'5, respectively. 
 I have made no attempt to estimate the income of India, as 
 I do not believe that there are data for doing this with any 
 approach to accuracy. Sir Evelyn Baring some years ago 
 estimated the income of India at 540 millions Rx. and the 
 rate per head at Rs. 27. The Famine Commissioners esti- 
 mated the average value of agricultural production in the 
 Madras Presidency at 50 millions, and taking the income 
 from other sources at half of that from land, the rate per 
 head comes out as Rs. 25. In France the non-agricultural 
 income is stated to bear the proportion of 122 per cent, to 
 the agricultural, in Russia 75 per cent., and in Spain 64 per 
 cent. The 50 per cent, assumed for India is, therefore, pro- 
 bably not far from the mark, but the income from land itself 
 is estimated on very uncertain data, and it is quite as likely 
 that the total income amounts to Rs. 30 per head as that it 
 is Rr. 25 per head. The difference, small as it looks, is 20 
 per cent., and will really amount to a large percentage of 
 error. In England the savings annually made, that is, the 
 additions to the capital, amount to 150 millions sterling out 
 of a total income of 1,247 millions or only 12 per cent.^^ I 
 
 '6 It is sometimes asserted that taking the income of India at Rs. 27 per head of the 
 population and the expenditure at nearly the same amount, there is no margin for saving 
 at all. In these calculations the assumed cost of living of an adult male labourer is taken 
 as the average cost of living per head of the population. This is of course quite errone- 
 ous. In England the cost of living of men, women and children is estimated to be in the 
 ratio of 20, 16 and 8. Of the population in this Presidency 36 per cent, or more than one- 
 third is under 15 years of age, and assuming that the proportions as to the relative cost of 
 living of men, women and'children to be the same as in England, the cost per individual 
 of the population will be, roughly speaking, less than half of that of a male adult labourer. 
 This leaves a considerable margin for saving, though not of course any thing like what 
 it is in England. At least 10 millions a year are saved in the shape of coin and bullion, 
 and there is a considerable quantity of property added to the capital in the shape of new 
 houses, furniture, wells, &c. The growth of capital is of course much slower here than in 
 England, but even in that country it is only during the last three centuries that capital has 
 grown rapidly as will be seen from the following estimates of capital in England at 
 different periods given by Mr. GiflFen : 
 
 
 Tears. 
 
 Population. 
 
 Capital. 
 
 Capital. 
 
 
 Millions. 
 
 Million. 
 
 Per head. 
 
 
 
 
 £ 
 
 £ 
 
 ' 
 
 1600 
 
 4-5 
 
 100 
 
 22 
 
 England . . 
 
 1720 
 
 6-6 
 
 370 
 
 67 
 
 
 1800 
 
 90 
 
 1,500 
 
 167 
 
 ( 
 
 1812 
 
 170 
 
 2,700 
 
 160 
 
 United Kingdom . . < 
 
 1846 
 
 28-0 
 
 4,000 
 
 143 
 
 ( 
 
 1886 
 
 37-0 
 
 • 
 
 9,600 
 
 270 
 
 In 1600 the capital per head in England was only two-thirds of the anrual income per 
 bead now.
 
 179 
 
 do not therefore attach much value to the estimate put for- 
 ward as regards the total income of India, but assuming it 
 to be correct, it will be seen that India shows very poorly 
 in comparison with European countries. There can be no 
 doubt that India is really very poor, but this is not seen so 
 much in the hard struggle for existence of the lowest classes 
 as in the comparatively small number of wealthy persons. 
 This will be evident when we take into account the distribu- 
 tion of incomes among the diflferent classes of society. In 
 England and Scotland, out of a total number of 14^ million 
 persons who make earnings, 1'4 millions or nearly 10 per 
 cent, pay income-tax, i.e., have an income of not less than 
 £150 per annum. The average income of this class is £411 
 per head. It is estimated that 1^ million persons or another 
 10 per cent, of the upper and middle classes have incomes 
 less than £150 earn £71 each. Manual labourers (11*6 mil- 
 lions) or 80 per cent, get £44 each. In Ireland, on the 
 other hand, out of 2 millions of persons who make earnings, 
 0*1 million persons or 5 per cent, have an income of £260 
 each ; "3 million persons or 15 per cent, have £37 each ; and 
 1*6 million manual labourers or 80 per cent, earn £22 each. 
 In France, out of 17*7 million persons who get incomes, 3*7 
 million persons or 20 per cent, earn £113 each, another 3*7 
 million persons or 20 per cent, earn £43 ; and the remaining 
 10"3 million persons or 60 per cent, earn £29. For the 
 Madras Presidency we have no means of making any esti- 
 mate which can at all be compared with those given above. 
 The following figures, however, will serve to show how poor 
 the greatest portion of the population here is. Out of a 
 population of nearly 35 millions there are 7 millions of heads 
 of families allowing 5 persons to a family. The number of 
 persons assessed to the income-tax, i.e-^ having non-agricul- 
 tural incomes of not less than Rs. 500 per annum, is 56,809. 
 The number of Government ryots paying not less than Ks. 
 250 revenue to Government, and their income from land may 
 be estimated at twice the assessment they pay, is 8,869. In- 
 cluding Zemindars and inamdars and ryots in zemindaries 
 having large landed properties, the number of persons with 
 incomes from land and other sources exceeding Rs. 500 per 
 annum cannot be higher than 70,000, which is 1 per cent, of 
 the total number of families. As there is more than one 
 person earning income or wages in a family, it is obvious 
 that the .persons earning more than Rs. 500 cannot be even 
 so high as 1 per cent.
 
 180 
 
 Thirdly^ in considering the question, whether the low 
 money income of this country means greater hardships to the 
 lowest classes of the population than in European countries, 
 the bare necessaries of life, both as regards quantity and 
 money-value, required in the countries compared must be 
 taken into account. To begin with, the quantity of food 
 required or assimilated in this country is less than in colder 
 climates, as shown by the fact that whereas in England a 
 British soldier's weekly rations are fixed at 25*7 lb., the 
 allowance for the same soldier here is 20 lb. only. Many 
 things which are absolutely necessary in a cold climate are 
 either not necessary here, or nature gives them gratis. 
 House-room, clothing and fuel for protection from cold and 
 damp are required to a much smaller extent here than in 
 colder climates. Thus taking the family of an English 
 labourer with an income of £60 a year, the cost of food and 
 groceries amounts to only £30 or 50 per cent., while £6 
 or 10 per cent, goes for rent and £24 or 40 per cent, for 
 clothing, &c. In this country labourers in villages pay no 
 house-rent ; their clothing does not cost them more than 
 Rs. 4 or Rs. 5 a year for all the members of the family. 
 They buy no fuel and hardly require any light or fire except 
 for cooking purposes at nights. From inquiries I have made 
 I find that the cost of food in this country in ordinary 
 times in the case of an adult labourer in rural tracts amounts 
 to about Rs. 1-12-0 per mensem" or 1 anna per diem; for 
 Brahmins and higher castes the cost is Rs. 3-8-0 per men- 
 sem or 2 annas per diem. In towns the cost of living may 
 be taken at 50 per cent, more including house-rent and cost 
 •of fuel. The weekly earnings of a town labourer and of the 
 other members of his family (say 2s. Qd.) will thus maintain 
 the family in ordinary times comfortably according to the 
 standard of living to which it is accustomed. In London, on 
 
 " I have given in the appendix V.-F. (m 5, 6 & 9) the particulars of the cost of living 
 of a labourer in this country and in European countries. The scales of diet prescribed in 
 jails for Europeans and natives are also given for comparison, appendix V.-F. (m 8 & 10). 
 There can be no doubt that the jail diet is much more liberal than that in use among 
 ordinary labourers in the lower classes of the population. The latter certainly do not get 
 meat three times a week with curds .on non-meat days, and skilled medical attendance in 
 case of sickness. The grain given is cholum, cumbu, or ragi, but a considerable portion 
 of the lowest classes use varagu, a much inferior grain, the price of which is only two- 
 thirds of that of the other grains. In England it was three centuries ago that wheat 
 became a common article of diet in substitution of rye, barley and oats, and the consump- 
 tion of meat has increased within the last 40 years. It is estimated that the cost of meat 
 and of wheat containing equal quantities of nourishment are in the ratio of 7 to 1 . In 
 the case of the English labourer in times of pressure there is scope for the reduction of the 
 secondary wants of life and of the cost of food by the substitution of cheaper for more 
 costly food forming part of the ordinary diet. In India to some extent wheat and rice have 
 taken the place of the cheaper dry grains, and this change is very beneficial.
 
 the contrary, lO.s'. a week would mean almost starvation; for 
 the same money wages represent far less real wages in Eng- 
 land than here. About 1850, or 40 years ago, the price of 
 wheat was 60s. per quarter in England and not more than 
 6s. a quarter in India. Now the price of wheat has heavily 
 fallen in England owing to extensive importations, stimu- 
 lated by the development of railways in America and the 
 cheapness of ocean freights, and is now between 80s, and 35s. 
 a quarter, while the price of wheat in India has risen to about 
 18s. a quarter, but still the price of wheat in England is nearly 
 double that of India. On the whole, there is greater uni- 
 formity of conditions as regards wealth, or rather poverty, 
 in India than in England, while, on the other hand, in the 
 latter country, in spite of its immense wealth, the intensity 
 of suffering and distress is greater among the lowest classes, 
 owing partly to the inclemency of the climate and partly 
 to the conditions of social and industrial life. In ordinary 
 seasons, as already stated, the poor in this country have no 
 diflBculty in finding a subsistence, and the infirm and old are 
 supported by relations or voluntary charity ; and deaths by 
 starvation are unknown; and in years of famine, nearly all 
 suffer alike and people die in thousands. In England, though 
 there is incomparably greater wealth, 1,800,000 or 6'3 per 
 cent, of the population receives State relief, and of the persons 
 above 65 years of age, nearly 40 per cent, are dependent for 
 subsistence on the State, having no provision to fall back upon 
 or relations able and willing to support them. "In England," 
 says Mr. Hobson in his Problem,^ of Poverty^ " the recorded 
 deaths from starvation are vastly more numerous than in 
 any other country. In 1880 the number for England is 
 given as 101. In 1879, the number for London alone is 27. 
 This is, of course, no adequate measure of the facts. For 
 every recorded case there will be a hundred unrecorded 
 cases where starvation is the practical, immediate cause of 
 death. The death-rate of children in the poorer districts of 
 London is found to be nearly three times that which obtains 
 in the richer neighbourhoods. Contemporary history has no 
 darker page than that which records not the death-rate of 
 children, but the conditions of child-life in our great cities. 
 In setting down such facts and figures as may assist readers 
 to adequately realize the nature and extent of poverty, it has 
 seemed best to deal exclusively with the material aspects of 
 poverty, which admit of some exactitude of measurement ; 
 the ugly and degrading surroundings of a life of poverty, the 
 brutalizing influences of the unceasing struggle for a bare
 
 182 
 
 subsistence, the utter absence of a reasonable hope of im- 
 provement, in short, the whole subjective side of poverty is 
 not less terrible because it defies statistics." On the other 
 hand, periodic famines and wholesale destruction of life of 
 the kind frequent in India are unknown.^^ 
 
 Fourthly. — It is when we consider vital statistics that the 
 low condition of this country, as compared with European 
 countries, becomes most apparent. The expectation of life 
 or the number of years which every person born may, 
 on an average, be expected to live is less than twenty-three 
 years in this country, while it is nearly 43 years in England. 
 The number that die before reaching five years is 50 out of 
 100 here, and 25 out of 100 in England. The number of 
 persons dying between the ages of ten and twenty, the 
 period in which they may industrially be expected to become 
 most efficient, is 8 out of 50 in this country, and 3 out of 73 
 in England. The registration of births and deaths is very 
 imperfect; still the rate of recorded deaths is as high as 29*3 
 per 1,000 of the population in the 55 municipal towns, and 
 
 ^8 I have given in the appendix V. (m 2) particulars of the ratios which the taxation 
 in some European countries bears to the assumed national income, to compare with similar 
 ratio in this country. It will be seen that the ratio is not higher here (Rs. 2-14-3 
 out of say Bs. 27 or 11 per cent, including local taxt-s) than in European countries with 
 the exception of England, whose wealth is enormous, and where much of public basiness 
 is performed bj'^ voluntary unpaid agency. Of course in a country like India, where by far 
 the larger portion of the national income is expended on the bare necessaries of life, a 
 certain percentage of the national income taken by way of taxation may, in point of fact, 
 be heavier than a higher percentage in a wealthy country. On the other hand, in a 
 country where the people are unenterprizing and indolent, the Government has to assume 
 functions which elsewhere are performed by the people themselves in order that they 
 may reach a higher stage of industrial development than they would do if left to them- 
 selves. The conflicting considerations bearing on this subject have thus been forcibly 
 stated by Professor Walker with special reference to India. 
 
 "By raising money as other money is raised, by taxes (the amount of which is 
 taken by individuals out of their expenditure on the score of maintenance), Government 
 has it in its power to accelerate to an unexampled degree the augmentation of the 
 mass of real wealth. Such is the claim in behalf cf Government expenditure. What is 
 to be said of it ? Let us proceed by way of an example. Let us take a large population 
 spread over a vast extent of country, like India, which possesses almost illimitable 
 facilities for the improvement of the soil through irrigation, and whose broad spaces 
 demand numerous and extensive lines of artificial communication, by canal or railway. 
 Let it be supposed that the people occupying this country are what the people of India 
 now are, in numbers, in character, in habits of living and working. Alike under the 
 influence of sexual passion and of religious superstition, they continually tend to increase 
 up to the limits of subsistence, even to the verge of famine ; not only accumulating no 
 capital, but laying by no store for future wants ; having neither the genius for organi- 
 aation nor the capacity of self-denial which would be required to initiate the simplest 
 local improvements. Now, we may imagine such a population ruled by a benevolent, 
 disinterested despot of the highest order of intelligence, a Napolean devoted to the arte 
 of peace. We may imagine this ruler, by a sj'stem of taxation that shall be as just 
 between individuals and as judicious in its seasons and methods as human wisdom can 
 make it, first, drawing from the crops of good years a store against the occurrence 
 of bad harvests ; then, by a gradually increasing stringency of exaction, adding to the 
 cost of living in such a way as to discourage the growth of population, while applying 
 the proceeds to groat public improvements which enable the food-supply ^pf the empire 
 to be readily equalised in the event of local scarcity ; which guard the cropg against the
 
 188 
 
 22*9 per 1,000 in rural parts, while the rate in such a large 
 city as London is only 21 per mille. High as the mortality 
 is in this country, there is little doubt that it is much lower 
 than what it was formerly. Surgeon-General Sir W. J. 
 Moore, in his address, read before the Congress of Hygiene 
 and Demography, held recently in London, pointed out that 
 death-rate in the army in India had been reduced from 69 
 to less than 14 per 1,000; European residents were so healthy 
 that the best insurance offices were willing to issue policies 
 to them without exacting extra premium, and, although the 
 system of registration was still defective, the official reports 
 of recent years showed that the average death-rates among 
 the native population had decreased in a few years from 35 
 or more to 26*67 per 1,000; many diseases were diminishing, 
 some had been extirpated. Even in the town of Madras 
 where the high mortality in recent years has attracted 
 public attention, elephantiasis, a loathsome disease which 
 was once very prevalent, has now gone out almost completely. 
 There is still a great deal to be done by means of greater 
 
 effects of periodical drought ; which afford rapid and cheap passage to the products of 
 inland districts. And as the productive power of the country increased under such an 
 administration, we can imagine the high-minded ruler, intent on his benevolent object, 
 still drawing away from the people, by taxation, all the surplus above the necessary 
 cost of subsistence for the present population, which might otherwise be applied to the 
 increase of population, and with the means thus acquired, providing capital in its 
 various forms for the use of the frugal and temperate, perfecting communications, 
 protecting the health and lives of his subjects by sanitary arrangements, and, at last, 
 undertaking the elementary education of the whole body of the people. 
 
 " A.11 this, it is clear, an absolute ruler of the character indicated might do for his 
 people ; and not a little of this many a benevolent and able ruler has done for his people. 
 ' The forced frugality,' to use Bentham's phrase, which his taxes have imposed, has at 
 once repressed population and stimulated industry among the existing body of labourers. 
 His wise expenditure upon public works, and in public education has sown the ceed 
 from which has sprung many a golden harvest. 
 
 " But while we see, thus, what an ideal monarch might do for a people indolent, 
 unambitious, sensual, by applying a portion of the wealth they created to ends more 
 useful, elevating and satisfying, than their individual tastes and appetites would have 
 selected, we are forced also to remember how a large part of the wealth raised by taxation 
 has, in all ages, been spent in war, pomp and folly ; how strong is the tendency to extra- 
 vagance and even to corruption in Government expenditure ; how much of what the 
 people pay the treasury does not receive ; how much of what the treasury disburses does 
 not reach its intended object. These considerations are strong enough to justify in a 
 large degree, if not wholly, that unwillingness to entrust to Government, the consumption 
 of the wealth of the community, much beyond what is necessary to secure domestic 
 tranquillity and the administration of justice between man and man, which is so 
 peculiarly American. 
 
 " Yet it is possible that this feeling may be carried too far. Vfhen one contrast* 
 the highways, the bridges, the streets, the harbours, the breakwaters, the light-houses, 
 and other aids to transportation and commerce, which Government provides, with the 
 best that could be reasonably looked for from individual or associated effort, without 
 the taxing power ; when one contrasts our system of public education with the best 
 that voluntary contributions or private munificence ever supplied ; when one contrasts 
 the sanitary arrangement for supplying pure air and pure water to our crowded cities 
 with the condition of things which exists where these matters are left to un-oflScial 
 action ; he wiU find occasion to qualify in no small degree his assent to the proposition 
 that, under a "veil ordered constitution. Government is only a police man, to keep people 
 from breaking each others heads or picking each others pockets."
 
 184 
 
 attention to sanitation and water-supply to improve the 
 . public health of this Presidency ; but, on the whole, there 
 is no reason to suppose that public health is worse now 
 than in times past. Destructive as fever is, it is much less 
 destructive now than formerly, and it is noteworthy that 
 fever is most prevalent, not in bad, but in good agricul- 
 tural seasons when the rainfall is abundant. Of all the 
 Provinces of India, the Central Provinces, which are excep- 
 tionally favoured by the comparative fertility of a large 
 portion of the land, show the greatest mortality. These 
 Provinces are taxed the lightest, the revenue assessed per 
 acre being between 5 and 8 annas and reaching 9 annas in 
 only one district. 
 
 Lastly, if we wish to find a parallel in European coun- 
 tries to the state in which this country was 50 years ago, 
 we must go back to the England of 400 years ago or at 
 the end of the fifteenth century, which has been described 
 by Dr. Cunningham in his Growth of English Industry and 
 Commerce as follows : " Unless the statements of the chroni- 
 clers are grossly exaggerated, England suffered severely 
 during the fifteenth century from two scourges which are 
 now entirely unknown — famine and pestilence. The popula- 
 tion was dependent on the seasons for the food-supply, and 
 though this might be plentiful in good years, there was often 
 a general scarcity which was intensified in particular dis- 
 tricts into a local famine. At such times men were driven 
 to use acorns and roots for food and had recourse to the flesh 
 of dogs and horses : some cases of cannibalism are reported. 
 It was only rarely that starving people were reduced to such 
 e:stremities ; but there is some reason to beheve that they 
 habitually used diseased and unwholesome food, and that 
 they were thus rendered a ready prey to the ravages of 
 pestilence. The Black death was specially terrible, but we 
 read of many other visitations, the accounts of which are 
 sufficiently appalling. A century during which more than 
 twenty outbreaks of plague occurred, and have been recorded 
 by the chroniclers, can hardly be regarded by us except 
 as one long unbroken period of pestilence. Besides these 
 occasional outbreaks there was chronic typhoid in the towns, 
 and leprosy all over the country. The undrained and neg- 
 lected soil ; the shallow stagnant waters which lay upon the 
 surface of the ground, the narrow unhealthy homes of all 
 classes of the people ; the filthy neglected streets of the 
 towns ; the abundance of stale fish which was eaten ; the 
 scanty variety of vegetables which were consumed ; predis-
 
 185 
 
 posed the agricultural and town population alike to typtioid 
 diseases and left them little chance of recovery when stricken . 
 down with pestilence." The small money incomes of those 
 days may be judged from the fact that the bailijS* in hus- 
 bandry, who was a superior servant, got yearly 26s. 8d. and 
 5s. for clothing, besides meat and drink, which may be 
 estimated at 2d. a day ; the ordinary artisan had Sd. or 4d. 
 a day and the reaper Sd. a, day, with meat and drink ; so that 
 in 22 weeks of continuous work, the ordinary artisan would 
 earn as much as the bailiff did in a year. No sufficient data 
 as regards regularity of employment in those days are 
 available. The common servant in husbandry was paid 20s. 
 8d. and his wife 14s. per annum besides their food, accord- 
 ing to the highest statutable rate in the fifteenth century ; 
 so that their united earnings would provide a little more 
 than half the usual allowance for an adult's food, and out 
 of this sum they had to feed their family, pay for fuel, rent 
 and clothing. Even if they could eke out a living in the 
 common waste, says Dr. Cunningham, it is most unlikely that 
 they had a larger free income than the agricultural labourer 
 at the present day ; we could not institute an accurate 
 comparison unless we knew not only the prices of the articles 
 they used, but also the quality of the goods they were able to 
 procure. It is not easy to obtain such information in the 
 present day and we cannot hope to get sufficient data for 
 judging certainly about the distant past. So far as regu- 
 larity of employment and short hours are a test of the well- 
 being of the workman, the fifteenth century day labourer was 
 badly off ; his summer hours lasted from five in the morning 
 till half-past seven at night with breaks which amounted to 
 two or two and a half hours in all. The conditions of the 
 banking business in the fourteenth century were such that 
 banking operations were very circumscribed. The most 
 striking difference between their times and ours is the entire 
 absence of commercial credits ; there were no bank-notes 
 or cheques, or other instruments of credit except a few 
 foreign bills. Dealing for credit was little developed and 
 dealing in credit was unknown. 
 
 The sufferings of the people have probably never been as 
 severe in this country as is d'escribed above in consequence 
 of a less inclement climate and a more fruitful soil, but the 
 wonderful improvement which has taken place in England 
 during ^he last three centuries might well inspire the hope 
 that similar improvement here is not unattainable. 
 
 24
 
 186 . 
 
 Section VI. — Certain alleged evils in the present economic 
 ■position and remedial measures considered. 
 
 68. In this section, I propose to make a few remarks on 
 
 ., . ,, certain special evils which are alleged to 
 
 Alleged evals m the , n , , i . j^ ji • 
 
 present economic posi- retard, to a greater or less extent, the im- 
 ^^^o'^- provement of the condition of the masses of 
 
 the population. These are, first, periodical revisions of land 
 assessment ; second, the uncertainty of the tenure of ryots 
 in zemindaries ; third, the increasing dependence of ryots on 
 professional money lenders, the stringency and inelasticity of 
 methods of revenue collection, and the absence of a developed 
 system of credit ; fourth, the decay of domestic industries, the 
 absence of diversity of occupations, and the dense ignorance 
 of, and want of enterprise among, the agricultural and indus- 
 trial classes ; fifth, the excessive cost of litigation ; and sixth, 
 the disintegration of village communities and the decay of 
 the spirit of co-operation so necessary in a poor country for the 
 purpose of carrying out large undertakings and for providing 
 safeguards against common dangers, and the absence of a 
 machinery which would serve as a safe and trustworthy gauge 
 to Government of the necessity for undertaking legislation in 
 matters affecting the laws of inheritance and domestic 
 relations of the people, corresponding to the rapid changes 
 that are taking place in their economic condition. I shall 
 endeavour to state to what extent the evils enumerated exist 
 and are the outcome of the present regime, what measures 
 have been taken by Government to remove them or mitigate 
 their effects, and what further remedial measures are 
 practicable. 
 
 I. Periodical Revisions of Land Settlement. 
 
 69. The Settlement department in this Presidency was 
 The circumstances Organized in 1856, that is, at a time when 
 
 under which the Settle- it was just beginning to recovor from the 
 l^J:rrSTj::. eff'ects of an acute agricultural depression. 
 rai principles laid down The old asscssmcuts had bccu exccssive 
 for its guidance. ^^^ f^^ bcyoud what the ryots could pay 
 
 regularly in all seasons, and their incidence, notwithstanding 
 the reductions made from time to time, had, owing to the 
 great fall in the prices of produce, become oppressive. A large 
 extent of land, often of superior quality, had fallen out of 
 cultivation in consequence of the unequal pressure of assess- 
 ments on the different classes of soil ; and cultivators who were 
 unable or unwilling to cultivate lands were forced to do so.
 
 187 
 
 Persons who possessed inam or tax free lands were prohibited 
 from cultivating such lands, unless they cultivated at the 
 same time an equal quantity of lands paying full tax to 
 Government; and torture was freely resorted to for col- 
 lecting the revenue. It was to put an end to this state of 
 things, so repressive of the prosperity of the agricultural 
 classes, and to promote agricultural enterprise, that Govern- 
 ment undertook the survey and re-assessment of the cultivable 
 lands throughout the Presidency. The object in view was 
 two-fold, viz., first, to reduce heavy assessments and to fix 
 a moderate tax on lands ; and, secondly, to remove anomalies 
 and inequalities in the assessments and to adjust, to some 
 extent, the tax levied on lands of different qualities with 
 reference to their relative productive powers. It was ac- 
 knowledged that the classification of soils in relation to their 
 productive capabilities and the ascertainment of their values 
 forlpurposes of assessment was a task of enormous magni- 
 tude and difficulty, but it was expected that by fixing the 
 assessments in a liberal manner, after making large allowances 
 for all possible errors and miscalculations, a fair assessment 
 could be arrived at. The spirit in which the operations con- 
 nected with the revision of settlement were intended to be 
 carried out will be seen from the following extract from the 
 despatch sent by the Madras Government to the Court of 
 Directors in 1856. "An exact and scientifically accurate 
 classification, distinguishing all the minute variations of 
 composition, quality and fertility of soil, is an operation of 
 extreme difficulty in any country, even with all the aids that 
 can be supplied by a high degree of scientific knowledge, 
 accurate and practised observation, and a trustworthy agency. 
 In this country, all these helps must in a great degree be 
 wanting, and it is the more necessary that the Government 
 should enter on the undertaking in a liberal spirit ; and if so 
 entered on, the difficulties will almost wholly disappear. It 
 must be remembered that the right of the Government is not 
 a rent which consists of all the surplus produce, after paying 
 the costs of cultivation and the profits of agricultural stock ; 
 but a land revenue only v/hich ought, if possible, to be so 
 lightly assessed as to leave a surplus or rent to the occupier, 
 whether he in fact let the land to others or retain it in his own 
 hands. Nor is this simply an abstract question of right ; it is 
 certain that the course here advocated is that which will give 
 the highest land revenue, because it holds out the greatest 
 inducements to the extended occupation of the land. It must 
 be remem\)ered that this Presidency contains a vast extent 
 of unoccupied land, liable to pay revenue if cultivated, but
 
 188 
 
 heretofore waste, greatly in consequence of the exorbitant 
 assessment fixed or liable to be fixed on it ; and it is certain 
 that this land will be increasingly brought under the plough 
 if moderately assessed. If the settlement be undertaken in 
 this liberal and comprehensive spirit, the preliminary classi- 
 fication of the soil will not be diflBcult. Under a moderate 
 assessment exact accuracy is immaterial, because the greatest 
 difference of assessment which could be caused by the want 
 of it would not be such as to render the land an unprofitable 
 holding, or to prevent its occupation ; at the utmost, it would 
 only render such land somewhat less profitable than other 
 land." These principles were approved in their entirety by 
 the Home Government who went even further than the 
 Madras Government in insisting that the agricultural classes 
 should be treated with the utmost liberality with a view to 
 ensure their prosperity. The Madras Government had pro- 
 posed in accordance with ancient customary usage to fix 
 the land revenue at a certain share, viz., 30 per cent, of 
 the gross produce. The Home Government, however, ruled 
 that the land revenue should represent a fixed proportion of 
 the net produce. They pointed out that the proposal to take 
 a proportion of the gross produce was inconsistent with the 
 principle that the right of Government was not even to the 
 whole rent, but only to a share of it ; for, while as regards lands 
 of a high degree of fertility, possessing every means of com- 
 munication and in the neighbourhood of good markets, 30 per 
 cent, of the gross produce might fall short of the share of the 
 rent Government was entitled to, the same percentage of the 
 gross produce might, in the case of lands less fertile and less 
 favorably situated, considerably exceed the whole rent and 
 trench on the profits of cultivation and wages of labour. The 
 natural and inevitable consequence of such a procedure would 
 be to favour the most fertile lands and to press with increasii^ 
 severity on the poorer lands. They further pointed out that 
 the fact that the holdings in this country were of small 
 extent, that the labour was in most cases performed by the 
 ryot and his family, and that the agricultural capital employed 
 was small, did not interfere in any way with the principle 
 laid down, " as the produce of the land must at least 
 be sufficient to feed and clothe the labourer and his family 
 and to replace the cattle and agricultural implements as 
 they become worn out; and besides this, a surplus must 
 remain for the payment of the assessment imposed by the 
 State." In 1858 again, Lord Stanley, the first Secretary of 
 State for India, re-affirmed the same principle. He remarked, 
 •* I am satisfied that it is quite impossible to ascertain, with
 
 189 
 
 any approach to minute accuracy, either the gross or the net 
 produce of each field ; but I am at the same time convinced 
 that, if either or both of these objects could be accomplished, 
 the right course would be to take a fixed proportion of the 
 net and not of the gross produce. The expenses of cultivation 
 vary greatly in areas of land of diff'erent qualities, yielding the 
 same quantities of gross produce ; and the net produce will, 
 of course, vary inversely in the same degree. I do not desire 
 that the Director of Revenue Settlement should endeavour to 
 ascertain with precision the actual net produce of each field ; 
 but that, in determining the rates of assessment for the 
 different qualities of land, the principle which was laid down 
 should be carefully borne in mind." In other words, a share 
 of the net produce was to be considered as the maximum 
 State charge, and having regard to the difficulty of calculat- 
 ing it accurately and to the injurious consequences of over- 
 assessment, the tax was to be so fixed as to leave a liberal 
 margin for miscalculations. This share of the net produce was 
 eventually fixed at one-half. It was further ruled that the 
 grain assessment should be commuted into money- value with 
 reference to the average prices at which grain had been sold 
 by the ryots for a sufficiently long period of years, in view to 
 taking account of the fluctuations in prices which usually 
 occur, and that the money rates imposed should not be liable 
 to alteration for thirty years. Another important consideration 
 to be taken note of and allowed for in the conversion of land 
 revenue payable in kind into a money assessment is the fact 
 that payment in kind with reference to each year's produce, 
 however inconvenient in other respects, has the merit of 
 calling upon the ryot to pay a small tax in years of deficient 
 produce when the ryot is straitened in his means of payment, 
 and a proportionately higher tax when he has reaped an 
 abundant produce and can aff'ord to pay with ease a larger 
 revenue. 
 
 70. These are the cardinal principles of the settlement, 
 The elaborate methods ^"^^ ^hey are as applicable to the Bombay 
 of Madras settlement as to the Madras Presidency. The instruc- 
 .rpZ»eth:"„'fEo^! tions issued to the Madras Settlement 
 bay; the two do not officors for Carrying out these principles 
 substantially differ. rcquiro that the net produce of every 
 
 variety of soil should be ascertained by a very large number 
 of actual experiments, and the procedure prescribed for this 
 purpose is most elaborate. The first process is to divide 
 the soil into certain main classes according to the mechanical 
 composition and chemical properties of the lands dealt with ; 
 there are 14' such classes recognized by the Settlement
 
 190 
 
 department. Each class of soil is then subdivided into, some 
 3 and others 5, " sorts," with reference to their degrees of 
 fertility as ascertained by an examination of the constituents 
 of the surface soil and sub-soil, the total varieties of soils 
 dealt with being 66. All lands, whether irrigated or unirri- 
 gated, are classed under these 66 varieties of soil. But for 
 irrigated lands the classification is still more elaborate, be- 
 cause these lands are again divided into a number of groups 
 according to the nature and efficiency of thesources of irrigation 
 from which the lands derive their supply of water, and lands 
 falling under each of these groups are classified under the 66 
 '* sorts *' of soil already referred to. The second process is to 
 ascertain the grain outturn of the lands irrigated and unirri- 
 gated classified as above shown. For this purpose, certain 
 prevailing dry crops in the case of dry lands, and paddy in the 
 case of irrigated lands, are taken as standards, and the aver- 
 age outturn, in terms of these crops, of every variety of soil, 
 is to be ascertained by actual harvest experiments conducted 
 for a series of years. From the average outturn thus ascer- 
 tained a deduction of from 15 to 25 per cent, is made on 
 account of extraordinary vicissitudes of season and barren 
 patches unavoidably measured with fields. The third process 
 is to find the money value of the grain outturn. For this 
 purpose, the average of the market prices of standard crops 
 in the months in which the ryots sell their produce for a 
 number of years, generally twenty, is ascertained, and deduct- 
 ing from it 8 to 20 per cent, for cartage and merchant's 
 profit';, the remainder is taken to represent the ryot's prices 
 and adopted as the commutation rate ; and the grain outturn 
 is converted into money at this rate. The fourth process is 
 to ascertain by actual enquiries the expenses of cultivation 
 for each kind of soil. The difference between the money 
 value of the grain and the cultivation expenses is taken as 
 the net value of each kind of soil of which a moiety repre- 
 sents the land tax ; and a table of rates is accordingly framed. 
 To correct inequalities arising (1) from the adoption of a 
 single commutation rate for an entire district or other large 
 tract of country comprising a number of taluks, while the 
 prices of grain often differ from village to village according 
 to facilities of communication and proximity to markets, and 
 (2) from the adoption of the same grain values for similar 
 soils whose fertility may be affected by local circumstances, 
 such as, vicinity to the sea, rivers or hills, the villages are 
 grouped together into separate groups, and the money rates 
 applicable to the lands classified in each group are raised or 
 lowered according to circumstances. Minor differences in the
 
 191 
 
 value of lands due to the same causes are allowed for by 
 modifying the classification under " sorts " in each group. 
 Thus fair land in a good situation immediately adjoining the 
 inhabited portion of the village would be classed in the first 
 sort " good, " while good land at a great distance would be 
 classed as "moderate." In the case of irrigated lands their 
 classification into " sorts " also is adjusted with reference to 
 their facilities for irrigation owing to their proximity or other- 
 wise to the irrigation source. 
 
 The procedure prescribed in the Bombay Presidency for 
 the valuation of soils is, on the other hand, much simpler. 
 Lands in each village are divided into 10 classes, and their 
 relative values are ascertained by noting their advantages in 
 respect of irrigation, and their defects, such as (1) admixture 
 of nodules of limestone, (2) admixture of sand, (3) sloping 
 surface, (4) want of cohesion, (5) impermeability to water, 
 
 (6) exposure to scouring from flow of water in the rains, and 
 
 (7) excessive moisture from springs, each of the defects being 
 held to lower the soil one class. The rate for the highest 
 class of soil»in each village is fixed by the Superintendent of 
 Survey with reference to general considerations, such as 
 climate, facilities for market communications, average prices 
 and the prosperity or deterioration of the village under 
 previous settlements ; and the rates to be imposed on the 
 lands of the other classes are determined by a mere arithme- 
 tical process. 
 
 The Madras settlement operations, however, though con- 
 ducted under elaborate rules resolve themselves in the final 
 result into the simple method adopted in Bombay, firstly, 
 because, the minute and extended enquiries which they in- 
 volve are in most cases impossible to carry out and have 
 frequently been dispensed with ; secondly, because, none of 
 the data on which reliance has to be placed, such as prices of 
 food-grains in former years, are perfectly trustworthy, and 
 in some cases information regarding the quotations of prices 
 in the ryot's selling months for the old years are entirely 
 wanting ; and thirdly, because, the determination of the rates 
 of assessment with reference to a large number of factors, 
 slight errors in regard to which might seriously vitiate the 
 total result, is apt to make the assessments excessive. The 
 late Mr. Pedder, Revenue Secretary in the India Office, has 
 pointed this out very clearly.^^ After describing the proce- 
 dure prescribed for the Madras settlements by " the instruc- 
 __^ 1 
 
 ■" Vide Statementiof Moral and Material Progress and Condition of India for 1882-83, 
 part i., page 115.
 
 192 
 
 tions," he goes on to say, " Siicli is the th eory of the Madras 
 settlement. In practice, however, it has been found impos- 
 sible or dangerous to adhere to it strictly. In the first place, 
 the difficulty of determining with accuracy the average yield 
 of land is great ; next, the only way of finding the average 
 cost of cultivation is to ascertain what it would cost to 
 cultivate a given holding by hired labour, and, as this labour 
 would be needed for only a certain number of weeks or 
 months, it is obvious that nothing would be allowed as wage 
 for the subsistence of the cultivator and his family during 
 the rest of the year. Hence, the first step in a Madras 
 settlement practically is to determine, on general considera- 
 tions (such as those described under Bombay), whether the 
 tract coming under settlement requires a decrease or will 
 bear an enhancement of its land revenue, and to what extent. 
 The total amount of assessment to be imposed having thus 
 been decided on, the results of the process above described 
 are adjusted so as to yield it. The estimates of average 
 yield are reduced to allow for error, or for exceptionally bad 
 seasons, and the commutation rate is lowered io cover pos- 
 sible fluctuations of prices in the future. In practice, there- 
 fore, the elaborate process above described determines rather 
 the relative than the absolute assessments of diff'erent classes 
 of land, and the Madras method does not really differ very 
 widely from that of Bombay." 
 
 71. An idea may be formed as to how greatly the rates 
 imposed by the Settlement department 
 
 In Madras, as in Bom- ^ , -. *'-, ,, -,. .. t-t 
 
 bay, valuation of soil must depend upon the discretion and ]udg- 
 dependant greatly on ment of individual oflBccrs and how little 
 
 judgment and discretion -, ,ii iiit ^, p 
 
 of individual assessors upou demonstrable calculated results, rrom 
 and has no claim to ]^\q followiug instaucc taken from the 
 accuracy. galcm Settlement. The calculated dry rates 
 
 for black loam are in the first group Rs. 3, Rs. 2-8-0 and 
 Re. 1 per acre, respectively, according as the land is placed 
 under the sorts " good,^' " middling " or " bad or indifferent 
 The classification under these " sorts " depends not only 
 upon the quality of the soil but also upon the distance of the 
 land from the village site and other circumstances, some of 
 which affect the gross produce of the land and others the net 
 produce or rent value, by increasing or diminishing the 
 cultivation expenses or the cost of bringing the produce to 
 market. It can be readily conceived what great difference 
 it would make to the ryot whether his land is classified 
 under class 4, sort 3 or class 4, sort 2, the assessment in the 
 latter case being 150 per cent, greater than in the former; 
 and yet in many cases it would be difficult 'to say whether
 
 193 
 
 classification under sort 2 or sort 3 was the more correct. 
 In later settlements, the difference in the rates appertaining 
 to consecutive sorts of land has been reduced by increasing 
 the number of "sorts" from 3 to 5 ; but it is obvious that 
 even a difference of 50 or 25 per cent, in the money rates 
 must affect the ryot to a considerable extent. 
 
 72. It is important to bear in mind these considerations 
 which illustrate the inherent difficulties in 
 
 Hence the necessity ii i n i , • i p. 
 
 to aUow a large margin all land valuatious, as proposals are oiten 
 for error in fixing land niadc for increasiuff or diminishing the 
 
 assessments. Mr. Good- , , « *^ • i <• l^ 
 
 rich's remarks regard- land tax, morc oitcn the tormer, on the 
 ing "excessive allow- supposition that the hypothetical data 
 
 ances ignore this fact. ^"^ t . ,,, . it,- i 
 
 assumed m settlement calculations, whose 
 main object may be stated to be (1) to systematize the classi- 
 fication made by the subordinate officers for purposes of easy 
 check by the higher officers, and (2) to regulate the relative 
 incidence of the tax imposed upon lands of different soils in 
 small tracts of country whose conditions as regards climate, 
 facilities for irrigation, access to markets and supply of labour 
 are fairly • homogeneous, have any pretensions to scientific 
 accuracy. Thus, Mr. Goodrich, late of the Madras Civil 
 Service, in an article entitled " Land Revenue in Madras," 
 published in the Economic Journal for September 1891, states 
 that the grain valuations and their money-equivalents fixed 
 by the Madras Settlement department are unduly low, the 
 estimates being " whittled down by excessive allowances, or 
 by making a fair allowance several times over in the course 
 of the calculation." Mr. Goodrich in making these remarks 
 entirely ignores the original instructions issued to the Settle- 
 ment department when it was organized, viz., that having 
 regard to the extreme difficulty of valuing soils, the varia- 
 bility of the seasons and the precariousness of the crops, the 
 poverty of the agricultural classes and the injurious conse- 
 quences of over-assessment, the assessment imposed should 
 be extremely moderate, and that a very liberal margin should 
 be allowed for errors and miscalculations. I agree with Mr. 
 Goodrich in considering that on the whole the estimates of 
 average outturn of soils adopted by the Settlement depart- 
 ment are below rather than above the mark, though one 
 cannot be very certain about this in the case of the poorer 
 soils, large areas of which obtain a catch-crop when they can. 
 As regards the " excessive " allowances, it seems to me that 
 the allowances, so far from being excessive, are barely suffi- 
 cient. The deduction of from 15 to 25 per cent, from the 
 average outturn for vicissitudes of season and unprofitable 
 areas measured with holdings is, in many cases, less than 
 
 25
 
 194 
 
 tlie percentage of dry lands under occupation, which though 
 not cultivated is charged with assessment annually.^^ This 
 percentage for the Goddvari district is 48 '5, for Tinnevelly 
 31-5, for Nellore 27*3, for Chingleput 26'6 and for the whole 
 Presidency 16 "9. In some of the districts, the lands are left 
 uncropped for pasture, but this is only in a small number 
 of cases. Then again, in fixing the commutation rate, from 
 8 to 20 per cent, is deducted from the average prices for 
 cartage and merchant's profits. The average prices are 
 prices for the entire district, while the price in one taluk 
 station often differs from that in another by as much as 30 
 per cent. To the ryots who have lands in the vicinity of the 
 taluk stations, where prices rule high, the rate is favorable, 
 but, to the ryots in out-of-the-way parts, the commutation 
 rates are unfavorable, and relief has to be given by reducing 
 the rates under the system of " grouping " already alluded to. 
 Moreover, the settlement calculations do not, ostensibly at 
 all events, make allowances for the liability of the ryot to 
 pay a fixed cash assessment in all seasons whether the crop 
 he reaps is abundant, or so scanty as to be hardly sufficient 
 for his subsistence. It is well known that poor ryots who 
 borrow grain from sowkars or the richer ryots in the 
 cultivation season have to repay at the harvest, i.e., in 6 or 8 
 months, the quantity borrowed together with an additional 
 amount varying from 25 to 50 per cent. When the crop fails 
 and payment has to be postponed to the next harvest the 
 additional quantity payable is, of course, proportionately in- 
 creased. Again, as remarked by Sir Thomas Munro, "it is 
 in the nature of assessment, proceeding from single fields to 
 whole districts, and taking each field at its supposed average 
 produce, to make the aggregate sum greater than what can 
 be easily realized," and in view of this, he used to lower the 
 estimates of the assessors from 5 to 1 5 per cent. "When it is 
 remembered that a margin has to be provided on account of 
 all these sources of error as well as weather-chances, Mr. 
 Goodrich's complaint as regards " excessive allowances " will 
 be seen not to have much foundation. In this connection, it 
 may be worth while noting that Mr. Puckle had obtained the 
 sanction of Government to the lands of the Salem district 
 being assessed at rates favorable to the ryots. Mr. Goodrich, 
 
 ^^ This applies, of coiiree, to the poorer soils. As regards soils of the higher quali- 
 ties, the allowances arc probably more than sufficient. The result of applying a uni- 
 form scale of deduction to all soils is to make the incidence of assessment "lieavy on the 
 soils of the poorer qualities and light on the better soils. As regards the high percent- 
 age of dry lands left waste, the Board of Revenue have, it appears., been instituting 
 enquiries and the results must be awaited.
 
 195 
 
 who was entrusted with the duty of introducing the settlement 
 rates, succeeded soon after in getting Government to recon- 
 sider its decision and consent to impose higher rates. Whether 
 Mr. Goodrich or Mr. Puckle was right may be judged from 
 the fact bhat, in the famine of 1876-78, the mortality was the 
 heaviest in the Salem district, next after Kurnool and Bellary, 
 amounting to 18-7 per cent, of the population. The Salem 
 district is one of the poorest in the Presidency, and in fixing 
 the land tax it is necessary that the actual conditions of the 
 case should not be lost sight of and that the scheme should 
 not be based on mere theoretic considerations. In the above 
 remarks, I have assumed that the data made use of in settle- 
 ment calculations are fairly trustworthy, but for forming an 
 idea of how extremely difficult it is to obtain even approxi- 
 mately correct data, and with what imperfect materials Set- 
 tlement officers have to deal, some further particulars given 
 in the appendix ^^ may be referred to. There is, however, a 
 curious proposal in Mr. Goodrich's article which completely 
 neutralizes his suggestion that the land assessments should 
 be considerably enhanced at each revision of settlement. It 
 is this, viz., that in settlement calculations allowance should 
 be made for the interest on the purchase value of the ryot's 
 holding, which he estimates as being generally thirty times 
 its assessment. The purchase money is, of course, the capi- 
 talized annual value of the holding at the current rate of 
 interest, and if the annual value of the holding prior to the 
 revision of the settlement is to be secured to the ryot under 
 all circumstances, it is obvious that the land-tax cannot be 
 enhanced at all. Though the interest on the purchase money 
 of the ryot's holding cannot be taken into account, there is 
 one important item which is omitted from the estimates of 
 expenses of cultivation framed by the Settlement department, 
 but which ought, properly speaking, to find a place in them, 
 viz., farming profits as distinguished from rent properly so 
 
 81 Vide Sectiou VI.-A. (1). Compare also Mr. Benson's remarks on settlement 
 calculations in his Analysis^ of the Agricultural Statistics of the Kurnool District. He 
 says as regards the commutation rate, " it is doubtful whether full allowance has been 
 made in considering this matter for all the deductions made to arrive at the commu- 
 tation rate and to compare that with the prices at which the ryot may be forced to 
 dispose of his produce. If therefore the estimated outturn and the calculations of the cost of 
 cultivation are accurate, the commutation rate for Pattikonda should be lowered at least 
 to that adopted for Kurnool proper, and that followed in Koilkuntla to not more than 
 Bs. 125 per garce. Nevertheless, it does not appear that the assessments are more than 
 the land can in general be made to bear, nor more than the people will pay as is evidenced 
 by the great recovery of the holdings since the famine ; but, though the people may exist 
 under such ai burden, it must prevent their making any accumulations, such as would 
 enable the ryots to form a reserve store on which to support themselves during an 
 unfavorable seasoja."
 
 196 
 
 called. The original instructions prescribing the procedure 
 for determining the land revenue rates, already quoted, make 
 it clear that the right of Government is to a land revenue 
 which " ought to be so lightly assessed as to leave a surplus 
 or rent to the occupier, whether he in fact let the land to 
 others or retain it in his own hands." Now, ryots are of 
 three classes, viz., first, land-owners, who do not farm their 
 lands but lease them to farmers ; second, ryots, who farm 
 their own lands employing hired labour for performing the 
 manual operations of cultivation ; and third, peasant proprie- 
 tors, who cultivate their lands themselves with the aid of the 
 members of their families without employing hired labour. 
 In the first case, the rent is the payment made by the farmer 
 to the land-owner minus the cultivation expenses borne by 
 the latter and the return for such permanent improvements 
 to the land as might have been made by him. In the second 
 and third cases, the rent would be what the land would fetch 
 annually, had the land been let to a tenant instead of 
 being cultivated by the owner. Where the rent is not ascer- 
 tainable in this way, it must be taken to be the surplus produce 
 left after paying the cost of hired labour, other expenses of 
 cultivation, interest on stock and farming profits, which last 
 must at least be sufficient for the subsistence of the farmer's 
 family, according to the standard of comfort prevailing in the 
 class to which it belongs. In this Presidency, owing to the 
 prevalence of peasant properties, the letting value of lands is 
 not in the majority of cases ascertainable, and consequently 
 the distribution of the gross produce into its three compo- 
 nents, viz., rent, farmer's profits and expenses of cultivation, 
 has to be arrived at by estimating separately the several 
 items of cost. In doing this, the settlement calculations 
 make no special allowance for farming profits. 
 
 73. In a previous portion of this memorandum, I have 
 
 The enhancement of adduccd evidence to show that, notwith- 
 
 revenue in districts set- standing the difficulties abovc alluded to 
 
 the^srctrofth^Tet i^ making even approximately correct 
 
 tiements, growth of the land Valuations, the assessments imposed 
 
 TyanVHsShe^standi by the Settlement department have not 
 
 ard of living among been cxcessivc, but ou the contrary have 
 
 the agricultural classes. v ^ j. j -j. r j.u i 
 
 ^ been such as to admit oi the large increase 
 
 which has actually taken place in the money value of landed 
 property — an increase which is considerably higher than the 
 increase in the prices of agricultural produce. This result is 
 due to the fact that the Grovernment has in all settlements 
 hitherto made taken care to see that the aggregate revenue of the
 
 197 
 
 tracts settled is not enhanced by more than a very moderate *^ 
 percentage. With the exception of Nellore and Vizagapatam 
 in which the increase of revenue was 11 per cent, and 15 per 
 cent., respectively, and the Nilgiris and the Wynaad taluk of 
 the Malabar district in which a peppercorn rent has been 
 imposed on a large area of waste land included in private 
 holdings, which, under the previously existing revenue sys- 
 tem, was charged for only when cultivated, the increase of 
 revenue has in no case exceeded 10 per cent. ; and in most 
 cases it has fallen far short of the percentage of increase in the 
 area of holdings brought to light by the new survey as com- 
 pared with the area entered in the old accounts. *^^ The Goda- 
 vari district and the Masulipatam portion of the Kistna district 
 are really no exceptions to the above statement, because the 
 large apparent increase in the revenue of those districts, 
 shown as due to the rev^ised rates of settlement in the accounts, 
 is really due to extension of irrigation under the anient works 
 recently constructed and to the fact that the water-rate 
 levied on lands irrigated with anient water, which had been 
 tentatively fixed at Rs. 3 an acre, was raised to Rs. 4 per 
 acre at the time the settlement rates were introduced and 
 to some extent also to the land assessment itself having 
 been raised in view to the increased value conferred on them 
 by the construction of the anicut works. The statistics 
 collected as regards leases registered in the Ooimbatore 
 district in 1889 and referred to in para. 48 of this memo- 
 randum show that the rental for which wet lands are 
 leased out are between 4 and 5 times the Government assess- 
 ment ; in the case of dry lands the rental is between 3 and 4 
 times the assessment and as regards garden lands, or lands 
 irrigated by means of wells, between 5 and 6 times. Of 
 course the lands leased out under registered leases are mostly 
 
 ^'^ Vide statement printed as appendix (2) to section VI.- A. Sir George Campbell, 
 in Ms minute on certain proposals, submitted by Lord Hobart's Government in 1874, 
 in connection with the Madras Settlements (vide Notes on Indian Land Revenue, pages 
 134, &c., in Appendix I. to the Famine Commission Report, 1881), has remarked 
 " According to the Governor they (the Settlement department) are supposed 
 to be elaborately carrying out, under explicit instructions from Home, a system of 
 valuation and assessment, on the basis of half net profits, but practically the rate of 
 assessment is decided by very different and simpler considerations, the most important 
 of which is that no cultivator is to pay more than he paid before, plus a very small 
 percentage." This circumstance is referred to in a spirit of depreciation by Sir 
 G. Campbell and other persons not acquainted with the objects and methods of Madras 
 settlements and the previous history of the question, but there can be no doubt that it 
 is precisely this moderation so frequently and emphatically enjoined by the Home 
 Government that has ensured the success of the settlements and the improvement of 
 the agricultural classes. 
 
 ^^ The exceijs in the area of holdings brought to light by the survey is not in all cases 
 due to waste land encroached upon by ryots and held without payment of tax. In many 
 cases they were due to the fact that areas expressed in native land measures were con- 
 verted into acres in'the old revenue acconnts at rates which were below the truth.
 
 198 
 
 of superior qualities and form only a small proportion of the 
 total lands under cultivation, and the whole of the rent is not 
 realized in adverse seasons, and consequently it would be 
 erroneous to accept the ratios, ascertained as regards tliem, 
 as applicable to all lands leased out, much less to all lands 
 generally. From inquiries I have made, I find that in most 
 districts, and more especially in Coimbatore and Tinnevelly, 
 the rental of wet lands taken as a whole is a little less than 
 3 times the Government assessment, and that of dry lands is 
 about twice. The land-owner has to bear a portion of the 
 cultivation expenses in connection with farm repairs and pays 
 the Government assessment and local cesses out of the rental. 
 Roughly speaking, the net profit of the owner of wet lands 
 may be stated to be half as much again as the Government 
 assessment and that the owner of dry lands makes as much 
 as the Government assessment. Lands in the vicinity of 
 towns, on which market garden produce can be grown give 
 an enormous profit, but, on the other hand, there is a large 
 extent of land of very poor quality on which chance crops 
 are grown. These lands which are on the margin of culti- 
 vation pay no rent, and the land tax imposed on them is not 
 a share of the retit but a tax on the earnings of labour. 
 Individual districts have, of course, been dealt with, more or 
 less liberally, according to the circumstances of the period 
 during which the new settlement rates were introduced and 
 the views entertained by the officers who had a predominant 
 influence in the decision of the question of the extent to 
 which the tracts settled could bear increased taxation. Thus 
 in the Trichinopoly district, which was settled by Mr. Puckle 
 at a time when the country had just begun to recover from 
 the prolonged depression from which it had suffered and 
 when the enormous rise in prices which soon after took place 
 could hardly be foreseen, the assessments were reduced by 
 25 per cent., notwithstanding that the survey disclosed an 
 increase in the area to the extent of 18 per cent. Salem, 
 Nellore and Chingleput, settled at the end of the period of 
 high prices, were treated less liberally, this being the result 
 of the re-action of the lenient assessments of the earlier 
 period. The enhancement of the revenue in Nellore, es- 
 pecially, viz., 11 per cent., must be considered heavy when 
 it is remembered that the survey, so far from disclosing 
 any excess in the area of holdings, showed a slight deficiency. 
 Taking all the districts in which the settlements have been 
 completed, as a whole, the increase in the revenue^ due to the 
 enhanced settlement rates does not exceed 5 per cent., which 
 cannot be considered excessive. In special 'tracts and as
 
 199 
 
 regards individual holdings, the increase of assessment has 
 been much higher and has caused occasional hardship, and it 
 is open to question whether sufficient consideration has been 
 paid by the Settlement department in settling districts to the 
 hardship in individual cases. The question came up for dis- 
 cussion in connection with the settlement of the Nellore 
 district, and the rule was then laid down that, where the 
 revised rates exceeded the old rates by 25 per cent., the 
 difference should not be levied at once but by gradual incre- 
 ments. This is undoubtedly a great boon to the ryots and 
 mitigates, so far as it goes, the hardship caused by a sudden 
 and large increase of assessment, but it is obvious that in 
 years of deficient produce, the revised assessment, even 
 though imposed in this manner, must bear hardly on the ryots 
 and possibly cause a deterioration in the standard of living, 
 if the enhancements be great and general. This danger has 
 to be guarded against even if the settlement calculations are 
 so thoroughly reliable as to justify the confidence that the 
 true " half-net" has been found. To quote Mr. Pedder again. 
 " The conclusion with which Mr. Knight's writings (Editor 
 of the Indian Economist) have made us all familiar — that the 
 rates of Government assessment should increase in proportion 
 to a general and permanent rise in the prices of agricultural 
 produce — is based on the assumption that Government tax 
 is or should be a fixed and definite proportion of the gross 
 or net produce. Granting the assumption, the argument 
 cannot be refuted. If the assessment in 1840 averaged in 
 a particular district Re. 1 per acre, and this was equivalent 
 to one-tenth the produce with the grain at Ee. 1 a maund, 
 it being assumed that one-tenth produce is a fair assessment, 
 it is perfectly clear that when, in 1870, grain has risen to Es. 3 
 a maund, the assessment should be raised to Es. 3 an acre. 
 Differences in rates of wages, &c., have nothing to do with 
 the question ; if the one-tenth produce is fair assessment, 
 it is equally fair whatever the price of grain may be. But 
 the case is entirely altered if we consider the assessment, not 
 as a tax of a certain proportion of the produce, but as a ^^ rent 
 regulated and determined by the ordinary standard of comfort 
 
 ^* In this connection, it shonlcl be mentioned that in the Bombay Presidency 
 the Government hns all along been considered as the sole landlord and the occupancy 
 right of the ryot as a recent concession and it is known by the name " Stu-vey tenure." 
 Waste lands are treated as the property of Government and sold to applicants for cultiva- 
 tion. In this Presidency, on the other hand, the ryot has all along been considered joint 
 proprietor with Government and in the case of waste lands, they are granted to strangers 
 only in cases in which the resident ryots refuse to cultivate them and pay the revenue 
 assessed therec/u. The land tax, according to the instructions laid down by the Home 
 Government, is or should be in this Presidency not a " competitive " rent, but a moiety 
 ©f the surplus prodnce " regulated and determined by the ordinary standard of comfort 
 of the peasantry at a particular time."
 
 200 
 
 amftng the peasantry at a particular time. If, in 1840, the 
 ordinary subsistence of a peasant was then represented by the 
 then equivalent of 10 maunds of grain, but in 1870 it is re- 
 presented by the equivalent of 20 maunds, it is evident that 
 (assuming the efficiency of cultivation to have remained the 
 same), the assessment of Re. 1 an acre with grain at Re. 1 
 a maund can only rise to an assessment of Rs. 1-8-0 with grain 
 at Rs. 3, unless the standard of comfort is to be lowered." 
 It is in view of these considerations that the Bengal Tenancy 
 Act of 1886 provides that the rent of an occupancy ryot shall 
 not be enhanced by the landlord even with the consent of the 
 ryot by more than 2 annas in the rupee or 12^ per cent, and 
 that the rent once fixed by contract shall not be liable to 
 enhancement during a period of 15 years from the date of 
 such contract. 
 
 74. The land assessments in 16 out of the 22 districts 
 
 have been revised in accordance with the 
 
 Districts in which set- principles abovc referred to, and settlement 
 
 tlements are m progress. r r _ ' _ _ 
 
 Those which remain to opcratious are lu progrcss lu the remaining 
 IS.'^d tke'lsT^i'ot 6, viz., South Arcot, Bellary, Anantapur, 
 peroas. Necessity for Tan j Ore, Malabar and South Canara. In 
 oP^"todt'ation ""^Jo ^^uth Arcot, the settlement rates have been 
 these districts also, to introduced iuto the two most important 
 Eund'SHSg!' taluks, viz., Cuddalore and Villupuram. 
 The revenue from wet lands has been 
 increased by 8 per cent., and that from dry lands diminished by 
 1 per cent., the net increase on the whole being 3 per cent., 
 while the excess area discovered by the Survey is 8 and 9 per 
 cent., respectively, in the two classes of lands. The Bellary 
 and Anantapur districts are, as recently remarked by Govern- 
 ment, "the poorest and most backward in the Presidency, the 
 most sterile and the most subject to drought;" and for this 
 reason, the Government declined to sanction a scheme for 
 the settlement of these districts which would have raised the 
 revenue by 12*5 per cent. After prolonged correspondence, 
 the Government has accepted a modified scheme which will 
 have the effect of increasing the revenue in five taluks in 
 these two districts by 8 per cent., while the increase in the 
 area is only 4 per cent. There is to be practically no in- 
 crease in the case of wet lands, but on dry lands the revenue 
 is to be increased by 9 per cent. In the Tadpatri taluk, the 
 increase is to be as much as 15 per cent, in the case of dry 
 lands, while the increase in the area is hardly 2 per cent. I 
 venture to think that, having regard to the generd poverty of 
 the districts and the unsatisfactory nature of the data on which 
 settlement rates are based, which fact was fully brought out in
 
 201 
 
 the correspondence, even the modified scheme finally sanctioned 
 is not as liberal as the circumstances of the case require. It 
 is true that the taluks to which the scheme sanctioned relates 
 are the best taluks in these districts, and it may be that in 
 the remaining taluks considerable relief from taxation will be 
 afforded ; but there is obviously great necessity for caution 
 in enhancing the revenue even in the favorably circum- 
 stanced taluks of these backward districts. As these two 
 districts are the poorest in the Presidency, so Tanjore, Mala- 
 bar and South Canara are reputed to be the wealthiest and 
 the most prosperous. The maimer in which these latter 
 districts are dealt with by the Settlement department will 
 form a precedent for adoption in revising settlements in the 
 case of other progressive districts, and the question, there- 
 fore, demands, and will doubtless receive, the most careful 
 consideration. In view of the importance of the subject and 
 of the extent to which any decision that is arrived at is likely 
 to influence the prosperity of the agricultural classes, I beg 
 to be permitted to make the following remarks. The Settle- 
 ment department was, as will have been seen from the account 
 already given, organized to reduce assessments in backward 
 districts, to correct inequalities in the assessments, to pro- 
 mote the growth of the value of landed property and to 
 secure the prosperity of the agricultural classes. To attain 
 these objects, in 'the early settlements taxation had to be 
 largely reduced. The methods of the Settlement depart- 
 ment were acknowledged to be necessarily rough, but any 
 nice adjustment of the rates of land tax on lands of different 
 qualities was not then a matter of great consequence as the 
 question before Government was one of relief from taxation 
 and not the imposition of fresh burdens. No ryot could, 
 under the new settlement, be placed in a worse position than 
 he was in previously, though in the adjustment of glaring 
 inequalities found in the old assessments and the merging 
 of the innumerable rates then existing in a few broad classes, 
 one ryot might receive more or less relief than another. The 
 enormous rise in prices which subsequently took place in the 
 decade ending 1870 rendered a large reduction in revenue 
 unnecessary and made it possible to enhance taxation to a 
 reasonable extent, to meet the growing cost of administra- 
 tive improvements, which the progress of the country and 
 the ever widening duties and responsibilities of Government 
 necessarily entail. The additional taxation imposed has, on 
 the whole, been moderate, and though in individual cases here 
 and there, 'hardship was caused by heavy enhancements, in the 
 general result; the reduction in incomes was probably not much 
 
 26
 
 202 
 
 in excess of what is met with in the ordinary fluctuations of 
 fortune and certainly not such as to cause any deterioration in 
 the standard of hving of the agricultural classes. The aspect 
 of the question as regards the districts which remain to be 
 settled is, however, quite different. These districts are 
 believed to be hghtly taxed,^^ and whether this is so or not, they 
 
 *' I have based the above remarks on the assumption that the Tanjore, Malabar and 
 South Canara districts are very leniently assessed as compared with other districts 
 already settled by the Settlement department. My belief, however, is that as regards 
 Tanjore at all events, this impression is, in the main, unfounded. Quality for quality, 
 I do not think that irrigated lands in Tanjore pay a much lower tax than lands in other 
 districts. The settlement scheme for Tanjore, now under consideration, will, doubtless, 
 undergo extensive modifications before it is finally sanctioned, but for the purposes of 
 the present argument, the average outturn per acre of irrigated land in the Cauvery 
 delta may be accepted at 24'.2 kalams or say 33 bushels of paddy. In the previous settle- 
 ments (Mr. Kindersley's and Mr. Ramiengar's) the outturn had been assumed to be a 
 little less than 24 kalams, and Mr. Venkasami Rao in his Manual of the Tanjore District 
 calculates the average outturn, with reference to the average rate of assessment and 
 the recognized proportion of the gross produce which the assessment is intended to re- 
 present, at 22 kalams. Since the earlier estimates were framed, the area of cultivation 
 of lands of necessarily poorer qaalities has largely increased ; and this must have 
 reduced the average outturn per acre, both because a larger proportion of poor lands 
 than formerly is cultivated, and because the quantity of water available has had to be 
 distributed over a lai-ger area, thus diminishing the supply of water per acre and of the 
 fertilizing silt which it brings. On the other hand, the irrigation of the district has 
 been materially improved by the construction of the CoUeroon anient and the Cauvery 
 regulating works, and there is probably much less wastage of water now than before. 
 Lands also are believed to be much more carefully cultivated now than in the old days. 
 It is, therefore, impossible to say at what figure the average outturn should be taken. 
 But assuming simply for the sake of argument the settlement average in round figures, 
 viz., 25 kalams per acre, the cultivation expenses and rent may be calculated roughly 
 as follows. The customary charges for reaping are about 5 and for threshing 3 per 
 cent., or 8 per cent, of the produce harvested on the whole ; after deducting these 
 charges, 25 per cent, is paid as porakudivaram or the cultivator's share. Other sundry 
 charges, such as farm repairs, manure, and artisans' fees, amount to about 5 per cent. 
 The total cost of cultivation, not including the landlord's wages for superintendence, 
 comes to about 36 per cent. If the land be rented out for fixed rent, the landlord's 
 net rent amounts, on an average, to only 60 per cent, of the gross produce, and it must 
 be remembered that, when there is deficiency in the outturn of produce, reductions are 
 allowed in the stipulated rents. Under the principles of the existing settlement, the 
 Government assessment is the commuted money value of 47 per cent, of the gross pro- 
 duce, of which roughly 4.'^ per cent, represents land revenue proper and 2 per cent, is set 
 apart for the remuneration of village servants. 40 per cent, being, as above shown, 
 absorbed by cultivation expenses, the remaining 13 per cent, represents the land-owner's 
 profit. Applying these percentages to the average produce per acre, the distribution 
 of 25 kalams will stand thus : 10 kalams cost of cultivation, 11^ kalams land revenue, i 
 kalam village ofiicer's remuneration, and 3| kalams landlord's net rent. The average 
 price of a kalam of paddy in Tanjore may be taken to be about 1 rupee. I have exa- 
 mined a large number of registered leases and found that this rate is the one most 
 frequently adopted. Out of 556 leases examined in villages belonging to the Tanjore 
 and Kumbakonam taluks the price of paddy mentioned is 1 rupee and less per 
 kalam in 279 and more than 1 rupee- in 277 cases for the years 1889 and 1890. On 
 account of the favorable commutation rate fixed for the district, the land-owner, 
 instead of paying for tne Government share of tha produce made over to him at 
 1 rupee per kalam, pays only at the rate of 8 annas, or more correctly, 7 annas 8| pies. 
 The Government, therefore, instead of getting Rs. 11-12-0 on account of land revenue 
 aind village oflBicer's remuneration, gets only Rs. 5, both because the Government share 
 is commuted at a rate which is only half the market price, and because the gross pro- 
 ^duce has been under-estimated. The landlord's rent which should be Rs, 3-4-0 is, on 
 -the other hand, increased to Rs. 10, or in other words, the landlord's rent is double the 
 Government assessment. This estimate I believe to be above and not below the mark. 
 Now in revising the settlement of the district, three courses may be adopted. The 
 first is to retain the principle of the old settlement and to recalculate the assessment 
 with reference to existing conditions as regards gross produce and market prices. If 
 this were done, the assepement would be increased from Re, 5 to its. 11-12-0 or by 136
 
 203 
 
 are comparatively more favoured by nature than most other 
 parts of the Presidency with the exception of the Godavari 
 and Ki3tna districts. The unfailing south-west monsoon rains, 
 the ancient anicut works and facilities of sea communication 
 had given these districts an early start in the career of pros- 
 perity. Ryots in these districts have had a valuable pro- 
 per cent. This will be simply tantamount to giving up all enlightened principles of ad- 
 ministration and reverting to the old native system of rack-renting tbe land by taking 
 a moiety of the gross produce. Such a proposal, it is unnecessary to say, Government 
 will not for a moment entertain. The second course is to exact in full half the net 
 produce which, as shown by me, is the maximum assessment leviable under the princi- 
 ples laid down for regulating the revision of assessment by the Settlement department. 
 If this be done, the rate per acre would come out as Rs. 7-8-0 and the present revenue 
 increased by 50 per cent. The third course is to treat the lands in the Tanjore district 
 in the manner in which lands of the same qualitv and irrigational advantages in 
 other districts dealt with by the Settlement department have been treated. L have 
 already shown that irrigated lands in other districts pay a net-rent to the landlord 
 equal to about half as much again as the assessment, or, in other words, that the land- 
 tax is not much lighter, if at all, in Tanjore than elsewhere. One test of this is the 
 value of the lands. For the Coimbatore district Mr. Nicholson, whose estimate is as 
 accurate as any that can be framed, gives the average selling price of wet land at 
 Rs. 250 per acre. Laud-owners on an average get a return from investments in lands 
 of not more than 5 per cent. At this rate the landlord's profit amounts to Rs. 12-8-0 
 per acre, which is two-thirds as much again as the average assessment per acre, viz., 
 Rs. 7-8-0. In reasoning from averages, of course, large allowance must be made for 
 possible error, and the calculations above given merely serve to illustrate the consider- 
 ations to be taken into account in arriving at a decision on the question. The 
 calculations themselves will have to be verified with reference to statistics as regards 
 rental and prices of land taken from the records of the Registration department which 
 are far more trustworthy for these purposes than conjectural estimates. To prevent 
 possible misapprehension, I wish once more explicitly to state that the fiigures assumed 
 here are hypothetical and are put forward for the purpose of illustrating the consider- 
 ations applicable to the question and not as in themselves even approximately correct. 
 The average outturn per acre especially might be anything, for ought we know, between 
 20 and 25 kalams per acre, and I have taken the higher limit for purposes of argu- 
 ment. It is in view of this uncertainty that the settlement calculations make a 
 reduction for " vicissitudes of season " and this I have not taken into account in my 
 calculations, though the Settlement department will have to do so, to avoid the danger 
 of cutting the ryot's profit too close. On the whole I think it may be stated that the 
 wealth and prosperity of the Tanjore district are due, not so much to the undue leniency, 
 as compared with other districts, of the assessment of lands of the several varieties of 
 soil enjoying similar irrigational advantages, as to the fact that the bulk of the lands in 
 the former district is irrigated, or, in other words, consists of lands which yield a large 
 net return. In the case of Malabar and South Canara, data for forming an opinion as 
 to the weight of assessment are not available, and the conditions of agriculture are in 
 these districts so different from those of the districts on the East Coast that it would 
 be erroneous to argae from the one to the other. While, on the one hand, these dis- 
 tricts enjoy the advantage of never failing south-west monsoon rains, on the other 
 hand, cultivation is very expensive, in that cattle are scarce and the soil is very porous 
 and the expense of levelling lands which become constantly cut up by torrents ia 
 specially heavy. Owing to the hilly nature of the country, to prevent the soil in the 
 uplands from being washed off by the rains and impoverished, banks of great breadth 
 and thickness have to be constructed round fields and the soil collected at the lower 
 end of the sloping fields has now and again to be redistributed over the whole surface. 
 The holding of landed properties by joint families consisting of members belonging to 
 several generations under the Marumakkatayam and Alayasantana systems, the imparti- 
 biUty of these properties except with the consent of all the members of the families, the 
 existence of complicated tenures and customs regarding payment of rent and of compen- 
 sation for improvements and the fact of the country being covered with plantations 
 which have been formed by the expenditure of much capital and labour both by land- 
 owners and tenants in the course of generations render the revision of the assessment 
 of these districts an undertaking of very great difficulty ; and the hardships likely to 
 result by a revision of settlement can be minimized only by making the enhancement 
 of reveuue eztremdly moderate at the outset at all eventSi
 
 204 
 
 perty in land from time immemorial, while in other places 
 
 the bulk of the land has only recently acquired value. In 
 wealth, intelligence and enterprise these districts stand ahead 
 of all others and the standard of living is much higher there 
 than elsewhere. It is also true that, if the necessities of 
 Government require extraordinary sacrifices to be made in 
 grave emergencies, these districts are in a better position to 
 make them than other parts of the Presidency. But the ques- 
 tion is whether, in ordinary times, it is desirable that the 
 principle of " modeyation," referred to by Mr. Pedder, which 
 has been the guiding principle in all settlements hitherto 
 made, should be laid aside and that Government should 
 impose additional burdens amounting, say, to 50 or 100 per 
 cent, of the present revenue, simply in order to level up tax- 
 ation so as to reach the " half-net," which the Madras Board 
 of Revenue in 1870 pronounced to be " indeterminate," 
 thereby causing depreciation of landed property and disturb- 
 ance of the relations between land-owners and mortgagees 
 and tenants, at the imminent risk of lowering the standard of 
 living, the raising of which within the last 40 years has been 
 the best proof of the undoubted beneficence of British rule 
 in this Presidency. I do not think that the question can 
 admit of any but one answer. Irrespective of all abstract 
 questions of right, it is obvious that the transference to the 
 public exchequer of a moderate percentage of incomes of the 
 agricultural classes, thoagh it may cause temporary incon- 
 venience, is not likely to leave permanently injurious effects ; 
 it may, on the contrary, even call forth energy and fore- 
 thought and engender habits of prudence among these classes. 
 The augmented resources of Government will also enable it 
 to undertake the many reforms in administrative arrange- 
 ments and in other directions which the country stands sorely 
 in need of, and a moderate increase of taxation will doubtless, 
 while leaving the margin available for maintaining undimi- 
 nished, and even increasing the standard of comfort interpose 
 a salutary check to an inordinate increase of population. A 
 sudden and great reduction of incomes must, however, para- 
 lyze energy and bring discontent and despair ; and when a 
 large portion of the population is subjected to this operation, 
 its injurious consequences can be readily conceived. A land- 
 holder's income which has been, say, Rs. 2,000, Rs. 500 or 
 Rs. 100 for 30 years may, without causing permanent hard- 
 ship, be reduced perhaps to Rs. 1,800, Rs. 450, and Rs. 90, 
 respectively, by additional taxation. The deficiency in the 
 income, which is not much in excess of what one must be 
 prepared for in the natural course of things, whether caused
 
 m 
 
 by chaoges in the prices of commodities or in the value of 
 money, may be met by effecting little economies in various 
 directions and may even act as an incentive to exertion with- 
 out compelling the persons affected to forego substantial 
 comforts and conveniences. If the income be suddenly 
 reduced to Rs. 1,000, Rs. 250 and Rs. 50, not in individual 
 cases but in the case of the majority of the population which 
 derives its subsistence from land, whether in the capacity 
 of landlords and rent-receivers, farmers or agricultural 
 labourers, the result cannot but be a great check to the 
 growing prosperity of the country. 
 
 75. The obvious remedy for the evils of periodical revi-^ 
 sions of assessment is, of course, the 
 Jn^rSSLllr:, permanent settlement of the land tax, a 
 land revenue, the several Settlement, SO far as the Madras Presi- 
 Sough/' ^''' ''"'''"^ dency is concerned, not of the kind made 
 with middle-men in the early years of the 
 century to the injury of the rights of cultivating ryots, but 
 one with the ryot proprietors themselves. This question, as 
 might be expected, has been much discussed during the last 
 30 years and a full account of the several phases which the 
 discussion v^ent through will be found in Sir Auckland 
 Colvin's *' Memorandum on the Land Settlements of the 
 North- West Provinces." In 1862, the Secretary of State for 
 India sent out orders directing that " a full, fair and equitable 
 rent must be imposed on all lauds under a temporary settle- 
 ment," and that wherever this had been done a permanent 
 settlement of the revenue might be made. The measure was 
 considered to be calculated to accelerate the development of 
 the resources of India and to ensure in the highest degree 
 the welfare and contentment of all classes of Her Majesty's 
 subjects. These advantages were believed to be suflBciently 
 important to justify incurring the risk of some prospective 
 loss of revenue in order to attain them. The probable effect 
 of rail-roads, the construction of which was then being 
 vigorously pushed on, it was anticipated, would be towards 
 the equalization of prices in different parts of India and a 
 general improvement in the wealth of the country, rather 
 than to give any peculiar advantage to the land-holders ; and 
 the apprehension of a fall in the value of money was considered 
 as not being of sufficient importance to influence judgment, 
 to any material extent, on the question. The Madras Board 
 of Revenue in 1868 also advocated strongly a settlement in 
 perpetuity of the land tax imposed on ryotwar holdings. 
 The Board pointed out that " the ryot is owner of his land in 
 a very limited and uncertain sense so long as Government
 
 2b6 
 
 retains the right of raising his assessment without his concur- 
 rence. It may, and doubtless will be, that the Government 
 will exercise this right with prudence and forbearance, but 
 the uncertainty necessarily lessens the value of the land and 
 affects the ryot's relations with his sub-tenants. The ryot 
 will naturally be debarred from freely investing his capital in 
 the improvement of his estate, because its value is liable to 
 deterioration whenever Government may order, or the public 
 may apprehend, an enhancement of the assessment, and, while 
 deprived himself of a secure title, the ryot can give his sub- 
 tenants no more than leases which must terminate or vary with 
 his own, and must reserve the power of raising his rents, if 
 and when Government raise their assessment. The growth of 
 large estates and the creation of a class like the tenant farmers 
 of England cannot but be impeded by such a policy." The 
 Board accordingly recommended that the land assessments 
 should be declared permanent, while reserving to Government 
 the right to alter, according to circumstances, the water rate 
 levied on lands supplied with water for purposes of irrigation 
 from Government works. The enormous rise in the prices 
 of agricultural produce which took place in the succeeding 
 years, and the influence of the agitation, which was started 
 in England about this time for the appropriation for national 
 purposes of the " unearned increment " in the rent value of 
 lands, had worked a great change in the views of Government, 
 and in 1869 the Secretary of State negatived a proposal made 
 by the Madras Government to declare the grain valuations 
 imposed by the Settlement department to be permanent, re- 
 marking that Her Majesty's Government felt themselves pre- 
 cluded from " sanctioning the surrender of such a legitimate 
 source of revenue as the Government share of the increased 
 value which has been conferred on the land by improved 
 administration, the construction of public works, especially 
 works of irrigation and railways, together with the improved 
 prices of produce." In 1871 again, the Government of India 
 directed that the permanent settlement of estates in the North- 
 West Provinces should not be proceeded with, the previous 
 orders on the subject being held in abeyance. They remarked 
 " when the question of the permanent settlement was formerly 
 under discussion, the magnitude of the economic revolution 
 through which India is passing was less obvious than it is now. 
 It may be doubted whether any parallel could be found in any 
 country of the world to the changes which have taken place 
 during the last 10 or 15 years in India; to the diiriinution in 
 the value of the precious metals and the enormous increase in 
 the prices of agricultural produce." Sir Auckland Colvin sums 
 
 i
 
 807 
 
 up the several stages of the discussion as follows : *' "With 
 the aspect of the day, the aspect in which the assessment of 
 land revenue is regarded has changed. ' Increased security of 
 fixed property ^ has given way to the ^ just rights of the State* 
 
 * Freedom from the interference of the fiscal officers of Govern- 
 ment ' is now thought of little account, when compared with 
 
 * a sacrifice of any portion of that rental of the land to which the 
 State is entitled.^ The fiscal side of the question is the one 
 chiefly regarded in these days of peace and apparent security." 
 Since Sir Auckland Colvin wrote, the views of the Government 
 of India have once more, owing to the famine of 1876-78 and 
 the distress suffered by the agricultural classes during that 
 catastrophe and the fall in the prices of produce notwithstand- 
 ing the fall in the value of silver, veered round, not indeed to 
 the position occupied in 1862, but to a point midway between 
 it and that of 1871 when the theory of "unearned increment" 
 was in the ascendant and had taken possession of the public 
 mind. The orders at present in force, regulating the proce- 
 dure to be adopted in revising land settlements, which will be 
 described at length later on, are based on an attempt to 
 reconcile the claims of the State to share in the unearned 
 increment in the value of property accruing from natural 
 causes with the necessity for seeing that the interference 
 with, and consequent depreciation of, landed property, which 
 the ascertainment of the Government .share must entail, is 
 not carried to such an extent as to discourage the investment 
 of capital in efiecting improvements to land. 
 
 76. The question of the permanent settlement of the land 
 tax on ryotwar holdings is one in regard to 
 J:!:r:£J:::j''' which the arguments pro and con may be 
 said to be nearly equally balanced. The 
 arguments in its favour may be thus succinctly stated. The 
 first is, that the theory of " unearned increment " in the value 
 of land and of the advantage of making it available for meet- 
 ing public expenditure, with a view to avoid the imposition of 
 taxation properly so called, can have but a limited application 
 in this country. The " true rent*" of land, that is the rent 
 due to the inherent qualities of soil and advantages of situa- 
 tion, as contradistinguished from value imparted to it by the 
 application of capital or labour, is extremely difficult to discover 
 and is subject to constant fluctuations. There is no certain 
 measure of the fertility of lands, as the rent of the same land 
 varies according to the crops grown and the systems of 
 cultivation practised. There is further great difficulty in 
 deciding what is "normal cultivation," "normal harvests" 
 and " normal prices.*' As Professor Marshall has pointed outj
 
 m 
 
 good ^nd bad seasons come so mucli Id cycles that many years 
 are required to afford a trustworthy average of harvests and 
 prices ; and in those many years, the industrial environment, 
 e.g., the local demand for the produce, the facilities for 
 selling it in distant markets, and for competitors from a 
 distance to compete in local markets, may have all changed. 
 Facilities of communication especially, by equalizing prices, 
 decrease the advantages enjoyed by such districts as Tanjore, 
 Malabar and South Canara, and enhance the values of rich 
 soils in the districts which had been less favorably circum- 
 stanced owing to the difficulty of access to markets. Secondly 
 the possibility of determining the "economic rent" pre- 
 supposes the existence of alternative occupations and the 
 possibility of movement ot farming capital and labour to them 
 to admit of the ascertainment of the " normal farming profits " 
 and " normal wages." These conditions are almost entirely 
 absent in this country, both because land can be worked as a 
 practical monopoly in the hands of Government which has 
 the power of enhancing the land assessments at its will, and 
 because the manufacturing industries in this country are, 
 relatively to agriculture, of little importance.^® Thirdly, the 
 question as to whether the funds required for public purposes 
 are taken out of rent or raised by taxation is of far less import- 
 ance here than in England. In England, the bulk of the land 
 is owned by a comparatively small number of persons who have 
 benefited by the enormous ^^ rise in rent at the expense of the 
 
 8^ It is the absence of alternative occupations that makes it necessary that a liberal 
 margin should be allowed in settlement calculations for farming profits and labourer's 
 subsistence. Professor Marshall observes: "In the greater part of India the cultivator 
 holds lands directly from the Government under a lease the terms of which can be 
 revised at intervals. And the principle on which these leases are arranged, especially 
 in the North- West and North-East where new land is being settled, is to adjust the 
 annual payments due for it to the probable surplus produce of the land after deducting 
 the cultivator's necessaries and his little luxuries, according to the customary standard 
 of the place, on the supposition that he cultivates with the energy and skill that are 
 normal in the place. Thus as between man and man in the same place the charge is of 
 the nature of economic rent. But, since unequal charges will be levied in two districts 
 of equal fertility, of which one is cultivated by a vigorous and the other by a feeble 
 population, its method of adjustment as between different districts is rather that of taje, 
 than a rewt. For, taxes are supposed to be apportioned to the net income which actually 
 is earned, and rent to that which wou\d be earned by an individual of normal ability j a 
 successful trader will pay on ten times as large an actual income ten times as large a tax 
 as his neighbour who lives in equally advantageous premises and pays equal rents." Aa 
 holdings consist of lands of different qualities, it is not by anymeans easy to adjust the 
 land assessment on the principle above stated, and moreover, over and above the cost of 
 subsistence of the peasants, a margin for profit with a view to accumulate savings to 
 tide over bad seasons has to be allowed for. 
 
 ^^ It has been estimated by Sir James Caird that the rental of land in England, 
 owing to the increased competition of foreign corn due to improvements in ocean trans- 
 port, fell from 1876 to 1886 by 20 millions sterling. If, therefore, the proposal of the 
 Land Tenure Association in 1870 of buying up the land- lord's rights and of nationalizing 
 land with a view to secure for the State the futare "unearned increnlent" had been 
 carried out, the loss to the country would have been 20 millions sterling annually, which 
 capitalized at 33 years' purchase would have amounted to 660 ni'lljons, a sum nearly 
 equal to the national debt of the United Kingdom.
 
 209 
 
 general community. In this country, on the contrary, property 
 in land is diffused throughout the population almost to an 
 inconvenient extent, so much so that landed properties consist 
 mostly of "five-acre farms" and there are nearly as many 
 properties as there are families. The rent of land, therefore, 
 instead of going to swell the fortunes of a few is distributed 
 over the whole population and the objection to raising the 
 funds required for the purposes of Government by taxation 
 of earnings instead of by appropriating the " unearned rent " 
 is deprived of much of its force. The right of Government 
 to increased revenue from waste lands brought under culti- 
 vation will, under the ryotwar system in force in this Presi- 
 dency, of course remain intact. Fourthly, the limitation of 
 the land-tax will allow large scope for the development of 
 taxation ^^ for local and provincial purposes on lines deter- 
 mined with reference to the wants and requirements of the 
 several provinces or districts, and will, subject to the condi- 
 tion of contributing to the common expenses of the Empire 
 according to actual needs, enable Local Governments to 
 devote their energies to the improvement of the provinces 
 committed to their care in the way best calculated to secure 
 it, without being subjected to external interference. In this 
 connection it must be remembered that, when the principle 
 regulating the share of the net produce which was to repre- 
 sent the land tax was settled in 1856, it was intended that 
 the charges for the maintenance of roads and of village 
 establishments should be met out of the Government assess- 
 ment, and accordingly it was declared that the assessment 
 included a percentage set apart for these purposes. The 
 original principle has since so far been departed from by the 
 development of the system of local taxation that, as regards 
 the local land-cess at all events, the charges which it was 
 intended should be met from the Government share of the 
 produce are now practically met out of the ryot's share. 
 Various proposals on an extensive scale, such as, the im- 
 provement of village sanitation and water-supply, extension 
 of elementary education, relief of the poor and distressed 
 not merely in times of famine but in years of partial 
 failure of crops, are being pressed on the attention of Local 
 Governments, and the work and responsibilities of these 
 Governments are being enormously increased in various direc- 
 tions ; and if these responsibilities are to be adequately 
 discharged, it can be done only by widening the basis of local 
 
 r ' ~~" ~~ ' 
 
 *^ lu this connection the remarks of Mr. GifEen on the development of local rates in 
 England in his " Ep^ay on Taxes on Land" (see Essays on Finance, 1st Series) are 80 
 apposite that I have ventured to extract them in the appendix VI.-A. (3). 
 
 27
 
 210 
 
 administration and, with it, of local taxation. The develop- 
 ment of local taxation will also enable Government to call 
 upon Zemindars who have largely benefited by the increase 
 in the value of landed property throughout the country to 
 contribute towards the performance of duties to their 
 tenantry which, it was intended at the time of the perma- 
 nent settlement, they should discharge, but which have 
 now practically devolved on Government. The funds raised 
 by local taxes will probably in no way fall short of the 
 additional revenue obtainable from periodical revisions of 
 assessment at long intervals, while the taxes themselves 
 would be imposed according to the exigencies of each case 
 after full discussion. 
 
 11 . I will now proceed to state the arguments telling 
 against a permanent settlement. When 
 
 Arguments against a ,1 i (• • i. z ' j. 
 
 permlnent settlement. ^^^ schemc tor mtroducmg a permanent 
 settlement throughout the whole of India 
 under the orders of the Secretary of State issued in 1862 
 was abandoned in 1871, the Government of India was influ- 
 enced chiefly by the consideration that the enormous rise in 
 prices and the consequent increase in the rents of the land- 
 holders which had taken place in the decade ending 1870 
 would continue. During that period, while the silver prices 
 of commodities had risen in India, there was no appreciable 
 change in the relative values of gold and silver. After 1870 
 there was a re-action and prices fell considerably. More 
 than 20 years have since elapsed and prices which now rule 
 are still 15 per cent, below the average of the decade ending 
 1870, notwithstanding that the price of silver in terms of 
 gold has fallen by more than one-third. If it were not 
 for the de-monetization of silver in Europe, prices would 
 probably have been 50 per cent, below the average of the 
 decade ending 1870. This shows that the anticipation of 
 continued increase in the rental owing to the general progress 
 of the country has not so far been realized, and, that but for 
 the fall in the price of silver, owing to causes specially affect- 
 ing that metal in its relation to gold, the land-tax would have 
 had to be considerably reduced. The objection to a perma- 
 nent settlement on the ground that it involves a needless 
 sacrifice of certain increase of future revenue has not there- 
 fore much weight; and, as already shown, the additional 
 funds found necessary for meeting the increased cost of 
 adviinistration can be raised by developing the system of 
 *o<\ witMxation. The real objection is that a 'permanent 
 set>d out,'->t of the land revenue will be altogether one-sided. 
 The tuture as regards the value of silver is entirely uncertain
 
 211 
 
 and a permanent settlement, while debarring Government 
 from increasing the assessments if there should be a further 
 great fall in the value of silver leading to a corresponding 
 rise in the silver value of produce in this country, would in no 
 way obviate the necessity for granting remissions of revenue 
 if the price of silver should rise to its old level of 2.^. per 
 rupee ; for, land assessments even though permanently fixed 
 would then have become very heavy in their incidence and 
 unrealizable except at the cost of a permanent deterioration 
 in the condition of the agricultural classes. Another objec- 
 tion is that there is diflBculty in fixing permanently the 
 assessment of lands irrigated by works constructed by 
 Government from borrowed capital. The outlay on these 
 works is regulated by commercial principles and it would be 
 an injustice to the general tax-payer, if the money assess- 
 ment leviable on the lands irrigated be permanently fixed 
 and made independent of the changes in the value of money 
 instead of the payments made by the land -holders specially 
 benefited by the works being adjusted from time to time 
 according to circumstances with reference to the value of the 
 benefits received. It is possible to separate the charge ^^ for 
 water from land assessment proper, and to fix the latter 
 permanently while the former may continue liable to altera- 
 tion. As, however, the charge for water forms in the case 
 of irrigated land the larger portion of the payment made 
 to Government, the land-holder gains little or nothing by 
 a permanent settlement of this kind. A third objection 
 is that to tracts which are liable to frequent droughts a 
 permanent settlement is unsuited. In these tracts it is not 
 the amount of assessment that presses, but the collection of 
 any assessment in adverse seasons when the ryot has reaped 
 either no produce or only such short produce as hardly 
 suffices for his subsistence. In tracts of this kind subject 
 to extreme vicissitudes of season, the introduction of the old 
 native system of sharing the crop, which is really an annual 
 settlement, has been frequently advocated. Even in the case 
 of irrigated lands, the duty of maintaining irrigation works 
 
 *' This is the plan adopted in the case of lands irrigated by the Godavari and Kistna 
 anicut works. The plan has been found to work badly and has not been adopted in the 
 case of other irrigation works recently constructed. The separation of land assessment 
 from charge for water is entirely artificial. Lands unfit for unirrigated cultivation 
 may be eminently fitted for irrigated cultivation. The levy of a charge for water at a 
 uniform rate unduly lowers the land revenue imposable on some soils and enhances that 
 of others and causes great inequalities in the assessments. The system of levying a 
 water-rate on lands permanently irrigated fi-om productive irrigation works has there- 
 fore been abanfloned and the profit from the works is now roughly arrivod at by taking 
 the difference between the entire assessment of the lands ii-rigated and the highest dry 
 rate which would h*ve been imposed had the lands remained unirrigated, as the chargg 
 for water.
 
 215^ 
 
 devolves on Government and the Government assessment is 
 remitted when there is a failure of supply of water for 
 irrigation. These considerations, however, important as they 
 are, only limit, it seems to me, the scope of a permanent 
 settlement, but do not show that its application to the bulk 
 of unirrigated lands in the country is impracticable. The 
 advantages of a permanent settlement of land revenue are so 
 great, that I am inclined to think that it should be intro- 
 duced, wherever practicable. I must, however, at the same 
 time admit that, considering the extreme uncertainty in 
 regard to the future value of silver and the instability of 
 the opium revenue, the present time is very inopportune for 
 Government to commit itself to any irrevocable decision 
 on this question. 
 
 78. Barring a permanent settlement, the scheme of the 
 , ^. Government of India propounded in 1883 
 
 uovernment of India j, .... , ^.i ••tji, 
 
 scheme for jninimizing lor mmimizmg the cvils mciQental to 
 the evils of periodical periodical revisious of assessment, is un- 
 
 revisions of assessment. ii.n ,i ■, ,i, i I'l 
 
 doubtedly the best that can be devised. 
 As these orders are not as well known as they deserve to be, 
 a summary of them will be given here. In these orders the 
 Government of India announce that the policy of a permanent 
 settlement, pure and simple, proposed in Sir Charles Wood's 
 despatch in 1862, has been definitely abandoned as involving 
 an unjustifiable sacrifice of the future resources of the State. 
 The evils of periodical revisions of assessment are at the same 
 time admitted in the most unreserved manner. The most 
 prominent among them are " the uneasiness arising from 
 uncertainty, the harassment of the agricultural classes, the 
 discontent engendered by mistaken assessments, the check to 
 expenditure on improvements, the positive deterioration of 
 agriculture in the last years of the term of settlement, and 
 the heavy cost and great delay involved in the operations." 
 In calling attention to these evils, the Government of India 
 is careful to point out that it is not intended to disparage or 
 under-value in any way the work done by the Settlement 
 department. That department has had a gigantic task toper- 
 form and has done it in a creditable manner. It has demar- 
 cated the boundaries of every property, and provided a map 
 of every field ; and in the face of almost insurmountable 
 difficulties has effected an official valuation of land which is 
 as approximately correct as it is possible for an official 
 valuation to be ; and indeed without an initial valuation of 
 this kind it would be impossible to introduce auy reforms 
 whatever in the system of settlement. The problem for 
 solution is how best to secure to the land-holding classes a
 
 213 
 
 diminution from the vexations incidental to a settlement 
 without a complete sacrifice by the State of its right to a 
 reasonable share in the increase of agricultural wealth due to 
 causes independent of the exertions of the agriculturists. 
 One thing is quite clear, viz., that the object in view cannot 
 be secured so long as the valuation of the various classes of 
 soil forms the main part of the work of a settlement officer ; 
 for, such a valuation cannot in the nature of things be effected 
 without enquiries of a minute and prolonged, and therefore 
 of a troublesome and vexatious, character ; and attempts to 
 arrive at a valuation by rough methods and hasty generali- 
 zations have only too frequently resulted in uncertainty and 
 inequality of assessment to the injury of the agricultural 
 classes. An absolutely equal assessment of land is, in any 
 case, impossible, both on account of the imperfection of the 
 data on which the valuation has to be based, and the constant 
 variation, in the natural course of things, of the conditions 
 which affect the valuation. The Government of India has 
 accordingly declared that, when once the soil has been care- 
 fully classified, there should be no re-valuation when the 
 assessment has to be revised, and that the revision of the 
 assessment should be effected under such principles and based 
 on such data as will enable any person investing money in 
 landed property or in improvements to land, to forecast, with 
 tolerable precision and without official aid, the enhancement 
 of revenue to which he will in future be subject, in order 
 that " certainty of assessment might become one of the 
 inherent attributes of agricultural property." The procedure 
 prescribed for effecting this object, so far as it is applicable 
 to the conditions of this Presidency, is as follows. The 
 causes which contribute to an enhancement of the value of 
 estates are : 1st, increased area brought under cultivation ; 
 2nd, increased produce due to improvements to land, and the 
 adoption of improved methods of cultivation ; ord, rise in the 
 prices of produce ; and 4th, diminished expenses of cultivation 
 or diminished cost of bringing the produce to market. In 
 this Presidency, the question of increase of revenue due to 
 extension of cultivation dees not, so far at least as the East 
 Coast districts are concerned, arise at periodical revisions 
 of assessment, as, under the system of field assessments in 
 force, every new field taken up for cultivation is made to pay 
 the prescribed assessment at once. In the case, however, of 
 estates in the Wynaad taluk of the Malabar district a large 
 area of waste lands has been assessed at nominal rates, because 
 to assess 'them at full rates while they remain uncultivated 
 will enhance, the assessment on the holding far beyond its
 
 214 
 
 present capabilities ; and it will be a question whether, when 
 the term of the present settlement expires, these lands will be 
 allowed to pay pepper corn assessments, if they should, in the 
 meanwhile, have been brought under cultivation. The same 
 considerations will apply to large estates containing waste 
 lands brought under the settlement now in progress in the 
 South Oanara and Malabar districts. Under the 2nd head, 
 increased produce due to improvements effected by Govern- 
 ment, such as the construction of irrigation works, will be 
 charged for by the imposition of a water-rate. The increased 
 produce arising from the improvements effected by the land- 
 owners at their own expense is, of course, to be left entirely 
 untaxed. These improvements consist chiefly of wells and 
 other works for irrigation, and the rule of freedom from 
 taxation as regards these, has indeed been scrupulously 
 observed in this Presidency since 1850 ; and reductions of 
 assessment amounting to several lakhs of rupees have been 
 granted on lands irrigated by works constructed prior to that 
 date. In Upper India and Bombay, however, a less liberal 
 policy appears to have prevailed till a very recent dat(^. It 
 further appears that in Upper India, the gradual enhancement 
 of value of land effected by improvement in the system of 
 cultivation and increased application of labour and skill to 
 the operations of tillage by the agricultural classes had formed 
 an important item in the increment of revenue obtained by 
 new assessments. The Government of India has relinquished 
 the right to tax improvements of this kind, being convinced 
 that it is false economy to discourage in any way the employ- 
 ment of such increased skill and labour. It is under the 8rd 
 head, viz., the rise in prices, that an enhancement of assess- 
 ments at periodical revisions of settlement is to be mainly 
 looked for. Even here it is not every rise of prices, however 
 small, that is to form a ground for enhancement ; nor is the 
 assessment to be enhanced in full proportion to the rise in 
 prices. There should be a substantial rise in prices to justify 
 an enhancement, and the Government of India has also 
 directed that at each periodical revision a margin, say 15 per 
 cent., of the profits arising from increase of prices, should be 
 left untouched " with the view both of raising the standard 
 of living among the agricultural classes, and of meeting the 
 increasing cost of labour, stock and implements." In cases 
 in which there is a fall in prices and the assessments fixed 
 become on this account really oppressive, remissions or sus' 
 pensions of revenue are to be granted at the discretion of 
 Government, as the circumstances of the case might require. 
 Under the 4th head, the most important consideration is the
 
 215 
 
 saving in the cost of carriage of produce to market and 
 consequent enhanced value of produce by provision of 
 increased facilities of communication by the construction of 
 railways or canals. The Government is of opinion that it 
 would be best to leave these advantages untaxed with a view 
 to avoid the minute enquiries that would otherwise be neces- 
 sary. The saving in cost of cultivation by labour-saving 
 appliances, such as improved water-lifts, will, of course, in 
 like manner with increase of produce due to the adoption of 
 superior methods of cultivation be left untaxed. The assess- 
 ments once fixed are not to be liable to variation for 20 years. 
 In the case of prices, an initial schedule is to be prepared 
 with reference to which future adjustments of the revenue 
 are to be made. This initial schedule, according to the 
 instructions of the Government of India, is to be based, not 
 on the prices of any one year, but on the average prices of a 
 period of years, say ten, immediately preceding the year 
 which is taken as the commencement of the settlement, 
 excluding years of famine or severe scarcity. The staples 
 which are to be taken into consideration, the markets at 
 which prices are to be registered, the period for which the 
 average is to be calculated and such like matters, are to be 
 decided after full discussion svitli the Local Governments. 
 The Government of India further directs that in those cases in 
 which there are interests subordinate to those of the land- 
 holders to be safe-guarded (e.g., tenants in South Canara and 
 Malabar holding at fixed rates), arrangements should be made 
 for the limitation of future enhancements of assessments 
 according to well-recognized principles easy of application, 
 being accompanied by similar limitation of the rents payable 
 by tenants to land-holders. The principles enunciated by 
 the Government of India have been accepted by the Madras 
 Government with modifications on two points and are to be 
 applied to revisions of assessments in all districts which have 
 been settled by the Settlement department. The modifi- 
 cations are : first, that as regards the calculation of average 
 prices, a period of 10 years being too small to give a fair 
 average, a longer period should be taken, the precise period 
 being left for consideration when the time for a revision of 
 settlement approaches ; secondly, that when a substantial rise 
 in the value of agricultural produce justifies an augmentation 
 of the State demand, a limit to the increase to be made at any 
 one time should be laid down. The second condition added by 
 the Madras Government is most important and is calculated 
 to protect agricultural classes from the hardship of large 
 and sudden en*hancements, to whatever cause they may be due.
 
 216 
 79. It will be seen from the scheme described above, that 
 
 SuggestionB as to i* ^OuM be impOSSiblc to have rules re- 
 measures to be adopted garding revlsions of assessment conceived 
 SLToHnta ^h^e i" a more liberal spirit or more calculated 
 effective for the purpose to minimize the annojances to land-holders 
 intended. , ^^\^\^^ f rom the Operations connected with 
 
 revisions of assessment and to remove the uncertainty in the 
 value of landed property resulting therefrom. These rules, 
 however, are not generally known, and unless the widest 
 publicity be given to them, it is obvious that the object in 
 view, viz., to enable persons desirous of investing money in 
 the purchase of land or in improvements to it to forecast 
 with reasonable certainty the changes in its value likely to 
 result from the enhancement of Government assessment, apart 
 from changes arising from natural causes, cannot be attained. 
 I beg to suggest, therefore, that the rules should be embodied 
 in a legislative enactment, or if this is considered undesir- 
 able, that they should be notified in the Official Gazettes. 
 Before this is done, certain preliminary questions will have 
 to be settled. ^Vq jird is the initial schedule of prices which 
 is to be taken as the standard and with reference to which 
 future revisions of assessment are to be regulated. The com- 
 mutation prices adopted for the existing settlements cannot 
 be taken as the standards for reasons which will be apparent 
 from the account already given in regard to the manner in 
 which the calculations as to the land valuations made for pur- 
 poses of settlement are adjusted with a view to see that the 
 enhancements of revenue resulting therefrom do not exceed 
 what the tracts settled may be expected from their general 
 condition to be called upon to pay with ease. Moreover, the 
 principle adopted in fixing the commutation rates has not been 
 uniform in all districts. In the earlier settlements, the com- 
 mutation rates were based on the average prices of as many 
 years as there were accounts for. In connection with the 
 Salem settlement, this rule was altered and it was laid down 
 that the commutation rates should be based on the average 
 prices of 20 years ending 1864. Then again, in connection 
 with the settlement of the Madura district, the latter rule was 
 modified, and it was enjoined that the commutation rates 
 should be the average prices for the 20 years preceding the 
 year of revision of settlement minus a percentage allowance 
 for cartage and merchant's profits, subject to the condition 
 that, where the rate thus deduced was higher than the lowest 
 price which liad obtained during the period of 20,years» the 
 latter should be taken as the commutation rate. This latter 
 condition has since 1887 been dispensed with. 'In the earlier
 
 217 
 
 settlements the prices taken were the prices of ryot's selling 
 months. In recent settlements the average prices of whole 
 years are taken subject to the deductions above referred to. 
 In view of these differences, it seems to me, that the commuta- 
 tion prices should be discarded and that the average prices 
 of 20 years prior to the existing settlements or such other 
 period as may be considered sufficiently long for arriving at 
 a fair average should be taken as the initial standard and 
 compared with a similar average of the period immediately 
 preceding the year in which the revision of settlement is under- 
 taken. This evidently is the course enjoined by the Govern- 
 ment of India, and it is the fairest under the circumstances. 
 The price lists on which future enhancements of assess- 
 ment are to be based should also be published in the Official 
 Gazettes under arrangements similar to those prescribed in 
 section 39 of the Bengal Tenancy Act.^° The deduction to 
 be made from prices for cartage and merchant's profits in 
 order to find the producer's prices and the margin to be left 
 untouched in the increased value of produce — whether 15 per 
 cent, as mentioned by the Government of India or other pro- 
 portion — should be definitely fixed. The limit to the enhance- 
 ment of assessment at any one time, suggested by the Madras 
 Government, should likewise be laid down. When these pro- 
 visions are embodied in definite rules and promulgated, the 
 object aimed at by the Government of India in propounding 
 the scheme above referred to will be fully secured. 
 
 II. The uncertainty or the Tenure of Ryots in Zemindaries. 
 
 80. Before the commencement of the present century the 
 ryots in Zemindari tracts, as well as the 
 
 Zeltda^rySr nol ryots who paid rcvenuc direct to Govern- 
 
 improved to the extent mcnt, wcrc rack-rcntcd and oppressed. 
 
 GoTe^menT?y'iSas°' During the last 90 ycars, however, the 
 latter class of ryots have prospered in 
 
 consequence of the measures adopted from time to time 
 
 ^ The provisions of this Bection are based on the principles adopted in the English 
 Tithe Commntation Acts. For finding the average prices arrangements will have to be 
 made for the selection of markets for the several descriptions of produce with reference 
 to their relative importance. Allowances will have to be made for the fact that the 
 average is unduly raised (1) because the average is struck on quotations of prices merely, 
 without taking into account the quantity sold at each price, quantities sold at higher 
 prices being smaller than quantities sold at lower prices ; and (2) because the grain sold 
 by ryots is of superior qualities while that consumed by them is of inferior quality. 
 Th© average varies also according as the quotations are in terms of varying amount of 
 money for a definite quantity of the article sold or in terms of varying quantity of the 
 article for a definite sum of money. It is the former that is price properly so called, 
 but in practice retail prices are quoted at so many seers per rupee. These and other 
 details will, of course, have to be carefully considered when revisions of land asiess- 
 ments are made to flepend solely on changes in prices. 
 
 28
 
 218 
 
 for the amelioration of their condition, as detailed in the 
 foregoing pages, while the former have remained in most 
 parts of the country in much the same condition as before. 
 The Zemindari ryots form nearly one-fourth of the total 
 agricultural population of the Presidency, and as the question 
 of improving their status is now engaging the attention of 
 Government, the following remarks are offered for consider- 
 ation. 
 
 81. For a proper understanding of the relations of Zemin- 
 dars and ryots, it is necessary briefly to 
 
 The rights of the cul- j ^^ ^j^ ^^^^ ^f ^^^ ^^gg ^^f^j^^ ^^^ 
 
 tivatmg classes to the o . , . 
 
 lands held by them permanent Settlement was carried out m 
 MahLM:da°'°j,°e:°' t^e beginning of the century, and to form 
 some idea as to how far the relations then 
 subsisting have been affected by subsequent legislation and 
 judicial decisions. Ancient Hindu law recognized only 
 two beneficial interests in land, viz., (1) that of the sovereign 
 or his representative, and (2) that of the cultivators hold- 
 ing the land either individually or as members of a joint 
 family or a joint village community. Neither the sovereign 
 nor the cultivators had unlimited proprietary right or 
 full ownership in the modern sense. The sovereign's right 
 consisted in his power to collect a share of the produce of 
 the cultivated lands, known by the name Melvaram in the 
 southern districts of the Presidency ; and this Melvaram is 
 not rent in the strict signification of the term. The share of 
 the ryots or cultivators is known by the name Kudivaram ; 
 and by ryots ^^ is to be understood "the cultivators who 
 employ, superintend and assist the labourer, and who are every- 
 where the farmers of the country, the creators and payers of 
 the land revenue." The ryot's right to land arises from mere 
 occupution ; ^^ and is not derived from the sovereign in the 
 manner in which the right of an English tenant is, under 
 modern English law, derived from his landlord. The relation 
 between the Government and the ryot may perhaps be de- 
 scribed as one of co-partnership,^^ but it is certainly not that 
 of landlord and tenant. The ancient Hindu law-books 
 clearly establish this position. The Hindu law-giver Menu 
 declares ^* cultivated land "to be the property of him who 
 
 " See definition given by the Madras Board of Revenue in Proceedings, dated 5th 
 January 1818, page 370 of the "Papers on Mirasi Right." 
 
 '^ Vide Judgment of the Madras High Court in Sivasubramanya versus the Secre- 
 tary of State for India : I.L.R., IX, Madras, page 285. Also decision in the Attapadi 
 valley case : I.L.R., IX, Madras, page 175. 
 
 '* See para. 45 >. i^s memorandum and the authorities quoted in the ndte at its foot. 
 
 " See minuteC/rS: Charles Turner, lat© Chief Justice of Madras, on the draft 
 Bill relating to Malabar Land Tenures. <
 
 219 
 
 cut away the wood and who cleared and tilled it." Another 
 Hindu sage, Jaimuni, states that the expressions magnifying 
 the power and glory of the king, such as that he is " lord of 
 all," ought not to be understood as placing all property at his 
 unrestricted disposal. His kingly power is for government 
 of the realm and extirpation of wrong, and for that purpose 
 he receives taxes from husbandmen and levies fines from 
 offenders. But right of property is not thereby vested in 
 him ; else he would have property in house and land apper- 
 taining to the subjects abiding in his dominions. The earth 
 is not the king's, but is common to all beings enjoying the 
 fruit of their labour. " It belongs to all alike; therefore, 
 although the gift of a piece of ground to any individual does 
 take place, the whole land cannot be given by a monarch ; 
 nor a province by a subordinate prince ; but houses and 
 fields acquired by purchase and similar means are Uable to 
 gift." Again, " the revenue only is to be taken by the prince ; 
 therefore, in a gift or other alienation by him of such lands 
 as aforesaid, gift of lands is not effected ; it is only a pro- 
 vision of income ; but in purchase from the land-holder, 
 ownership does accrue in the houses, land or other property 
 purchased ; and through ownership thus acquired and such 
 objects given, the benefits to the donor of the gift of land 
 may really be obtained." On the other hand, the property 
 of the ryot did not necessarily carry with it power to dispose 
 of it in any manner he thought fit ; and this for several rea- 
 sons. One is that the right ot individual ownership had not 
 in most parts of the country been developed, as lands were 
 held in joint-ownership by members of joint famihes and 
 village communities and regarded as constituting " an estate 
 dedicated equally to the support of sacrifices to the deceased 
 members, as to the sustenance of those living, and still to 
 come into life." ^^ Ancient Hindu Law accordmgly required 
 that the deed of sale of land should be attested by the " heir, 
 kinsmen, neighbours, villagers, an oflScer of the sovereign 
 and scribe." Dr. Burnell in his South Indian PalceoffrapJiy 
 gives the results of his examination of ancient documents and 
 inscriptions relating to transfers of property as follows : 
 " Down to recent times the land in South India was held by 
 village communities, and thus the greatest number of existing 
 private deeds are of grants by Sabhaiyar (from Sanscrit 
 Sabha), the heads of the community acting on its behalf. 
 The earliest documents of this kind, which are now in exist- 
 
 '^ Vide decision of the Bombay High Court in Bhaskarappa versus the Collector of 
 North Canara : LI^E., Ill, Bombay, page 452,
 
 220 
 
 ence, indicate that the earliest form of communal property (in 
 which the common land was cultivated by all the owners in 
 common who divided the produce) had already become 
 uncommon ; for though townships exist where this system 
 is followed, — and there are traces of it, — yet the inscrip- 
 tions indicate that the system which still exists to a great 
 extent in South India, viz., communal lands with shifting 
 lots exchanged periodically, was already widely practised. 
 Under this system the rights of ownership in a township 
 are divided into a number of shares, and these again sub- 
 divided to a great extent. The township land is divided into 
 hattalais which answer to fields. And these are sub-divided 
 into lots which answer to the shares (pangu) or fractions of 
 shares owned by the several members of the community. 
 But the township land consisted only of the arable land ; the 
 ground on which the houses of the community were built 
 (mnattam)j that on which the serfs or artizans resided [■para- 
 seri nattarrii ^c), the village burning ground (Sudukadu), water 
 courses and tanks, temples, waste land (irayili nilam= land 
 without owner) were private property or reserved for the 
 public use in general, and over which the members of the 
 community had merely the right of use. What could be 
 transferred was, therefore, a certain extent of land corre- 
 sponding to a share or shares together with the undefined 
 rights over the public property which attached to every 
 member of the community, but which were not, and sel- 
 dom are, mentioned in deeds, or to the separate property 
 of the individual member of the family. There can be no 
 doubt that all such transfers of either kind were illegal and 
 void without the sanction of the community, and the Sanscrit 
 
 lawyers clearly recognized this principle The 
 
 numerous attestations to transfers of property are intended 
 to represent the co-proprietors' assent and ratification, rather 
 than evidence of execution of the document." Even where 
 the communal and joint family systems had given way to 
 individual property, land might still not be transferable, both 
 because, by heavy taxation the value of the interest of the 
 cultivator might have been reduced to little or nothing, and 
 because owing to the sparseness of the population and abund- 
 ance of waste lands the difficulty might be not in finding 
 lands but in finding men to cultivate them. The fact that 
 the ascertainment of the share of the sovereign and its valua- 
 tion were left to his officers led to continual encroachments 
 on the cultivator's share and thus rendered his property an 
 uncertain one, is an objection applicable to all forias of pro- 
 perty which were exposed to inroads of this kind. All rights
 
 221 
 
 were in former times based on the authority of custom, and 
 the ruling power professed to respect custom, even though 
 it might violate it on special occasions. The Muhammadan 
 rule did not alter the internal constitution of villages and 
 the rights of landed property, except by increasing the tax 
 and diminishing the value of the ryot's interest by collecting 
 the revenue by means of farmers. The limitation of the 
 share of the sovereign applied of course to lands newly 
 reclaimed from waste as well as to lands previously under 
 cultivation. In parts of the country where joint village 
 communities were in existence — and this was generally 
 in tracts where lands were irrigated under great sys- 
 tems of irrigation — these communities claimed the right 
 to cultivate the waste within their villages to the exclu- 
 sion of strangers. In the portions of the country exposed 
 to the ravages of frequent wars, droughts and famines, 
 village communities would constantly tend to disappear 
 almost as rapidly as they were formed; and the rights in 
 cultivated land would consequently be of small value ; and 
 there would be no assertion of any right to cultivate waste 
 lands because there was no necessity to do so. Even here, 
 when waste land was cultivated, the right of Government 
 was limited to taking the share recognized as its due in the 
 case of lands already under cultivation. On this point, Sir G. 
 Campbell in his Essay on Indian Land Tenures observes, " In 
 no part of India and under no form of Government did the 
 State undertake the latter functions (of letting lands at com- 
 petitive rents) or any others analogous to those of an English 
 landlord. Except in the assignment of waste land to be 
 cultivated on the customary temirsy there never was any sys- 
 tem of interference with the immediate possession of the soil ; 
 no letting it by competition or anything of that kind." 
 
 82. The melvaram and kudivaram rights are thus the 
 two principal independent interests in 
 wa'^'rSh^tlpe'S: l^d, and all other interests are derived 
 ent rights and other from, or are Subordinate to, either the. 
 interests derived from one or the othcr. The ryot or ulkudi or 
 mirassidar was the receiver of the kudi- 
 varam, and he might cultivate the land himself or have it 
 cultivated by tenants in cases in which the Government share 
 of the produce left him a kudivaram which had a margin 
 above the cost of the cultivator's subsistence. The tenant put 
 in by the ryot was called a porakudi or stranger cultivator. 
 In exceptional cases, the poi-akudi was permitted to acquire 
 a beneficial interest in land and the status of an ul-porakudif 
 but this was Jiot recognized as a part of the general common
 
 222 
 
 law of the country.^ At the other end of the scale, there 
 were the Zemindars, Jaghirdars, and Inamdars, who derived 
 their rights from the sovereign with jurisdiction over por- 
 tions of the country which would not, under the Hindu law, 
 affect the kudivaram right vested in the ryots. The Zemin- 
 dars were of very various origin. Some of them were the 
 descendants of ancient chiefs, holding the territories assigned 
 to them on condition of paying tribute and rendering military 
 service. Others were revenue oflBcers and farmers of revenue 
 employed by the Hindu and Muhammadan Governments, 
 who had acquired power and influence which led to their 
 being recognized as Zemindars. Others, again, were origin- 
 ally heads of villages or ryots or even kavalgars, taliaries, 
 or watchmen who had collected round them armed bands of 
 robbers and levied blackmail from the surrounding villages, 
 and by the assistance rendered to sovereigns during trou- 
 blous times got themselves recognized as Poligars, In all 
 cases, the Zemindar's right extended only to the melvaram, 
 except in the case of Khamar, Pannai or home-farm 
 lands which were kept distinct from lands cultivated by ryots. 
 This was the common law of the country, but in practice, of 
 course, owing to the absence of settled authority, the ryots 
 were grievously oppressed by the levy of illegal cesses. In a 
 few cases, where the "sist" or regular assessment was a 
 fixed sum of money, the extra assessments represented the 
 additional value of the Government share due to the rise in 
 the value of produce, and as such was legitimate enough ; 
 but in most cases the extra assessments were purely arbi- 
 trary. In the Northern Circars, as we have already seen, 
 the ryot's share of the produce which was originally not less 
 than one-half was, by the additional imposts levied on vari- 
 ous pretexts, reduced to one-fourth or one-fifth. Mr. Stratton 
 has given a full account of the revenue system prevailing 
 in the Chittoor polliems in his report, dated 14th July 1801. 
 His report shows that, besides the mamool teerva which 
 was in itself sufficiently onerous, imposts were being levied in 
 the Venkatagiri and Kalahasti Zemindaries under the deno- 
 mination of katnmns, and that most of these were arbitrary 
 exactions which had originated within the previous 35 years. 
 In the Ramnad Zemindari also, additional cesses over and 
 above the mamool teerva were levied, among which may be 
 mentioned Nilavavi (land-tax), Vakkalvari (the straw tax), 
 Pddakdnikhai (a present placed at the feet of the Zemindar), 
 palo,m katchi (a present made to the Zemindar when the glad 
 
 See decision of the Madras High Court : I.L.B., VII, Madras, page 374.
 
 223 
 
 tidings of the ripening of dry crops was conveyed to him), 
 grain fees for the maintenance of an Enghsh writer in the 
 establishment of the Zemindar, &c. Venkatagiri and Kdlahasti 
 Zemindaries are instances of Zemindaries in which the exist- 
 ence of a kudivaram right in the ryot is denied : in the 
 Ramnad Zemindari, on the other hand, the right is fully 
 admitted and transfers of lands by sale or mortgage are 
 quite as common as in the Government ryotwar taluks. ^' 
 
 83. The rights of the Zemindars to hold their estates 
 were, before the permanent settlement, 
 wfaTSda^tTsS' much more uncertain than those of the 
 ryots, and the object of the permanent 
 settlement was to place the rights of the former on a 
 secure basis by limiting the demands of the Government 
 on Zemindars on account of the revenue, in order that 
 the demands of the latter on the ryots might be equally 
 defined and limited. On the occasion of introducing the 
 permanent settlement in Bengal in 1792, the Court of 
 Directors remarked as regards the tenure of Zemindars as 
 follows : " On the fullest consideration, we are inclined to 
 think that whatever doubt may exist, with respect to their 
 
 '' The nature of the ryot's right was everywhere the same, though its saleable value 
 varied in different places and in most was nothing. This is clear from the following 
 extract from Board's Proceedings, dated 5th January 1818, in which the Board stated 
 the results of their enquiries into the nature of the ryot's right in different parts of the 
 Presidency. " The universally distinguishing character as well as the chief privilege of 
 this class is their exclusive right to the hereditary possession and usufruct of the soil, 
 so long as they render a certain portion of the produce of the land, in kind or money, 
 as public revenue ; for whether rendered in service, in money, or in kind, and whether 
 paid to Rajahs, Jaghirdars, Zemindars, Poligars, Mootahdars, Shrotriemdars, Maniemdars 
 or to Government officers, such as Tahsildars, Amuldars, Ameens, or Thanadars, the 
 payments which have always been made are universally termed the dues of the 
 Government. 
 
 " The hereditary right of the ryot above described, though everywhere the same or 
 at least of a similar nature, is in value different in different districts. After discharg- 
 ing the wages of his hired labourers, and defraying the subsistence of his slaves or other 
 immediate expenses of cultivation, if the public assessment payable by him is so 
 moderate as to leave him a considerable surplus, his interest in the soil is that of a land- 
 lord, and his land yields a clear land rent and is, of course, a saleable and transferable 
 property ; but where the revenue payable by him is so high as to absorb the whole of 
 the landlord's rent, and to leave him a bare and precarious subsistence only, his 
 interest in the land dwindles into mere occupancy, and from a landlord he is reduced 
 to a landholder still indeed clinging to the soil and subsisting by tilling it, but no 
 longer possessing any saleable interest. 
 
 " The value of the ryot's right, therefore, varies with the weight of the public assesB- 
 ment on the land, which is generally found to be heavy in proportion to the length of 
 the time that the country may have been subjected to the Muhammadan Government. 
 On the West Coast of the Peninsula, where the Mussalman power was both of most 
 recent introduction and short duration, this right constitutes property of great value, 
 which is vested in each individual ryot. In the Tamil country, it is vested more 
 frequently in all the ryots of a village collectively than in each individually ; and is of 
 less value than in Canara and Malabar, and sometimes of little or no value as a saleabl© 
 property. In t^e Ceded Districts and Northern Circars, which were the longest 
 under Muhammadan rule, though the Coombees, Reddiea, Naidoos and other Kadeem 
 inhabitants assert their hereditary right to a priority and preference of occupancy, they 
 do not now appear t9 possess any saleable righ6 in the soil."
 
 224 
 
 original character, whether as proprietors of land or collec- 
 tors of revenue, or with respect to the changes which may in 
 process of time have taken place in their situation, there can 
 at least be little difference of opinion as to the actual 
 condition of the Zemindars under the Moghul Government. 
 Custom generally gave them a certain species of hereditary 
 occupancy, but the sovereign appears nowhere to have bound 
 himself by any law or compact not to deprive them of it ; and 
 the rents to be paid by them remained always to be fixed by 
 his arbitrary will and pleasure, which were constantly exer- 
 cised upon this object. If considered, therefore, as a right of 
 property it was very imperfect and very precarious, having 
 not at all, or but in a very small degree those qualities that 
 confer independence and value upon the landed property of 
 Europe. Though such be our ultimate view of this question, 
 our originating a system of fixed equitable taxation will 
 sufiiciently show that our intention has not been to act upon 
 the high claims of Asiatic despotism ; we are, on the contrary, 
 for establishing real permanent valuable landed rights in our 
 provinces, and for conferring that right upon the Zemindars, 
 but it is just that the motive of this concession should be 
 known and that our subjects should see that they receive 
 from the enlightened principles of a British Government 
 what they never enjoyed under the happiest of their own." 
 The authors of the permanent settlement inappropriately 
 called the rights conferred on the Zemindars, " proprietary 
 rights," being influenced by the notion fostered by modern 
 English law, that there should be full ownership vested in 
 some one person, and all other rights should be considered 
 as derived from or through him. This view of the case 
 placed the rights of the ryots at a disadvantage in that they 
 were regarded as a sort of inferior, derivative, possessory 
 rights. The existence of the latter rights was, however, 
 fully acknowledged and the Government reserved to itself 
 the fullest power to legislate, when necessary, for the protec- 
 tion of the ryot's rights. The Court of Directors specially 
 cautioned the Governor-General " to so express himself as to 
 leave no ambiguity as to their right to interfere from time 
 to time, as it might be necessary, for the protection of the 
 ryots and subordinate landlords, it being their intention in 
 the whole of this measure effectually to limit their own de- 
 mands, but not to depart from their inherent right as 
 sovereigns of being the guardians and protectors of every 
 class of persons living under their Government;" and the 
 Governor-General in accordance with the Court's injunc- 
 tions issued J in 1793, a proclamation containing, among
 
 285 
 
 other things, the following declarations addressed to the 
 " Zemindars; independent Talukdars and other actual 
 proprietors of lands," viz., " It being the duty of the ruling 
 power to protect all classes of people, and more parti- 
 cularly those, who from their situation, are most helpless, tKe 
 Governor- General in Council will, whenever he may deem fit 
 and proper, enact such regulations as he may think necessary 
 for the protection and welfare of the dependent Talukdars, 
 ryots and other cultivators of the soil. No Zemindar, inde- 
 pendent Talukdar or other actual proprietor of land, shall be 
 entitled on this account to make any objection to the dis- 
 charge of the fixed assessment which they have respectively 
 agreed to pay." It was further declared " that implicit 
 obedience be shown by the proprietors to all regulations 
 which had been or might be prescribed by Government, con- 
 cerning the rents of the ryots and the collections from under- 
 tenants and agents of every description as well as from all 
 other persons whatever." In the Madras Presidency the 
 permanent settlement was made on the same principles as in 
 Bengal. The instructions issued to Collectors for the purpose 
 of carrying out the permanent settlement acknowledge that 
 " distinct from these (Zemindar's and Talukdar's^ claims are 
 the rights and privileges of the cultivating ryots, who, though 
 they have no positive property in the soil, have a right of 
 occupancy as long as they cultivate to the extent of their 
 usual means, and give to the Sircar or proprietor, whether 
 in money or kind, the accustomed portion of the produce." 
 Laws were to be made for the protection of the ryots and 
 under-tenants on the one hand, and for enabling Zemindars 
 on the other, to recover the rents due to them. In order 
 that the Courts might easily determine the rents payable, the 
 Zemindars were to enter into specific engagements, called 
 puttahs, with the ryots. The rents to be paid, by what- 
 ever rule or custom regulated, were to be given in specific 
 money amounts, wherever possible. In cases where the rate 
 only could be specified, such as when the rents were adjusted 
 upon a measurement of the lands after cultivation, or on 
 survey of the crop, or when they were made payable in kind, 
 the rate and terms of payment and proportion of the crop to 
 be delivered, with every other necessary condition, were to be 
 clearly specified. Every Zemindar was to be required to 
 prepare a form of a puttah or puttahs, adapted to the 
 circumstances and usages of his Zemindari and after obtain- 
 ing the Collector's signature to it in token of his approbation, 
 to register a copy of it in the Civil Court of the district 
 and deposit copies also in the principal Cutcherries of the 
 
 29
 
 226 
 
 Zemindari. Every ryot was also to be entitled to receive a 
 copy on application and no puttahs which were not in the 
 prescribed form were to be held valid. Refusal on the part 
 of a Zemindar to grant a puttah to a ryot was to be punish- 
 able by a fine " proportioned to the expense and trouble of 
 the ryot in consequence of such refusal." Receipts were to 
 be granted for all rents paid, and a refusal to grant a receipt 
 was similarly to be punished with fine equal to double the 
 amount of the rent paid by the ryot. The instalments in 
 which the rents were payable were to be fixed with reference 
 to time of reaping and selling the produce and a Zemindar 
 violating this rule was liable to be sued for damages. It was 
 hoped that in course of time, Zemindars and ryots would find 
 it to their mutual advantage to enter into agreements in 
 every instance for a specific sum fixed on a certain quantity 
 of land, leaving it to the option of the latter to grow what- 
 ever crops they might consider most profitable to them. In 
 the meantime, the ryots were to be protected from the levy of 
 any new taxes " under any pretence whatever," and any 
 Zemindar who imposed such taxes was to be made liable to 
 a heavy penalty. The attention of the Collectors was drawn 
 to the taxes which were already being levied, and which it 
 was apprehended had already become oppressive and too in- 
 tricate to adjust; and the hope was expressed that the 
 Zemindars would revise the same in concert with the ryots 
 and consolidate the whole into one specific sum, by which the 
 rents would be much simplified, and much inconvenience to 
 both parties be thereby obviated in future. The Government 
 was prepared to relinquish its right to derive any revenue 
 from the cultivation of waste lands which were " to be given 
 up in perpetuity to the Zemindars, free of any additional 
 assessment, with such encouragement to every proprietor to 
 improve his estate to the utmost extent of his means, as was 
 held out by the limitation of the public demand for ever, and 
 the institution of regular judicial Courts to support him in all 
 his just rights, whether against individuals or the officers of 
 Government, who might attempt in any respect to encroach 
 upon them." The advantages expected to accrue from the 
 improvement of these lands were stated to be " to put the 
 Zemindar upon such respectable footing as to enable him with 
 the greatest readiness to discharge the public demand, to 
 secure to himself and family every necessary comfort and to 
 have, besides, a surplus to answer any possible contingency*"' 
 
 These instructions formed the basis of the seriss of regu- 
 lations passed in 1802 defining the rights and liabilities of 
 Zemindars with whom a permanent settlement was entered
 
 227 
 
 into, both as regards Government and the ryots who were 
 placed under them. The Zemindars were, of course, in 
 accordance with the erroneous ideas as to the rights of ryots 
 prevaiUng at the time, declared to be " proprietors of the 
 soil " (section 2 of Regulation 25 of 1 «02). The safe-guards 
 provided for the protection of the ryots were these : f'irst, it 
 was made imperative on the part of the Zemindar to offer 
 puttahs to his ryots (and to exchange muchiJikas with them) 
 clearly specifying the rent demandable from them, within six 
 months from the date of t-he permanent settlement. These 
 puttahs and muchilikas were to be signed and registered, 
 not by the Collector as orignially contemplated, but by the 
 kurnam of the village who, by another regulation passed at 
 this time, was made independent of the Zemindar on the one 
 hand, and the Collector on the other (section 14 of Regula- 
 tion 25 of 1802' and section 3 of Regulation 30 of 1802). 
 The expectation was that by insisting on the terms as regards 
 rent, &c., being reauced to writing with the mutual consent of 
 the parties interested, and registered in the office of a village 
 officer who was, supposed to be placed in a position in which 
 he would not be amenable to the influence of the Zemindar, 
 the rights of the ryot would be secured and the Courts 
 would be furnished with the means of deciding readily dis- 
 putes regarding rates of rent between Zemindars and ryots ; 
 secondly. Zemindars were required to consolidate rents and 
 imposts of all kinds customarily levied from ryots into one 
 specific sum within two years from the date of the permanent 
 settlement and enter it in the puttah ; and if the Zemindars 
 neglected to do so, the rents and cesses were not to be enfor- 
 ceable in a Court of Law (section 6 of Regulation 30 of 1802) ; 
 thirdly, Zemindars were forbidden to impose any new cesses or 
 taxes on the ryots, under any name or pretence, and the levy 
 of any sums other than those mcluded in the consolidated 
 amount entered in the puttah was made punishable with fine 
 equal to three times the amount levied unauthorizedly (sec- 
 tion 7 of Regulation 30 of 1802) ; fourthly, it was laid down 
 that if disputes arose between Zemindars and ryots regarding 
 rates of assessment, in money, or of division in kind, the rates 
 were to be determined according to the rates prevailing in 
 the cultivated lands in the year preceding the permanent 
 settlement of the revenue of the estate ; and where these rates 
 might not be ascertainable, according to the rates established 
 for lands of the same description and quality as those res- 
 pecting, which the dispute arose (section 9 of Regulation 30 
 of 1802). By these provisions it was thought that, though 
 cesses which pYevious to the permanent settlement had beei^
 
 228 
 
 unauthorizedly imposed might be perpetuated, the imposition 
 of any further cesses subsequently would be prevented and 
 that the adoption of the rates levied in the year previous to 
 the year of the permanent settlement, would in most cases 
 obviate the necessity for enquiry into difl&cult questions of 
 vague and undefined usage as regards rates of rent. On the 
 other hand, the poivers conferred on the Zemindars for the 
 recovery of their rents were the following : first, they were 
 authorized to distrain for rent the moveable property of the 
 ryots, with the exception of lands, houses, articles of trade 
 or manufacture, and also ploughs, implements of husbandry, 
 ploughing cattle or seed grain so long as other property 
 might be forthcoming (sections 2, 3 and 4 of Regulation 28 
 of 1802) ; secondly, they had power to eject from their lands 
 the ryots who refused to accept the puttahs^ offered to them 
 in the presence of witnesses, and to grant the lands to other 
 persons (section 10 of Regulation 30 of 1802) ; thirdly, where 
 a person who made default in the payment of rent had by grant 
 or established usage of the country a transferable right in 
 the land, the Zemindar might apply to the Court to sell such 
 right in satisfaction of the rent due ; and where the defaulter 
 was a lease-holder or other tenant having a right of occupancy 
 only so long as he paid the rent, without right of property or 
 possession, the Zemindar could eject him of his own autho- 
 rity (Regulation 28 of 180:^, section 34, clause 7) ; fourthly, 
 Zemindars were empowered to summon, and, if necessary, 
 compel the attendance of ryots for the adjustment of their 
 rents, or for measuring lands, or for "any other lawful pur- 
 pose." These powers were exerciseable without any previous 
 application to the Courts, but for abuse of these powers the 
 Zemindars were liable to fine and damages (section 34, clause 
 8 of Regulation 28 of 1802). Zemindars were prohibited from 
 confining or inflicting corporal punishment on ryots on pain 
 of prosecution in a Criminal Court (section 29 of Regulation 
 28 of 1802). 
 
 Mr. Webbe, the Chief Secretary to the Madras Govern- 
 ment in 1802, was appointed Special Commissioner for carry- 
 ing out the permanent settlement in this Presidency, and 
 the duty of drafting the regulations passed in connection with 
 the settlement devolved on him. In a communication made 
 to Mr. Webbe by Messrs. Hodgson and Greenway, the latter 
 gentlemen strongly urged the desirability of inserting in 
 Regulation 30 of 1802 certain provisions which would have 
 had the effect of placing the rights of ryots on. a .secure 
 basis. The section suggested was to the following effect : 
 ^'No Zemindar, proprietor (or whatever name be' given to these
 
 persons) was entitled by custom, law or usage to make his 
 demands for rent according to his convenience, or in other 
 words, that the cultivators of the soil had the solid right from 
 time immemorial of paying a defined rent and no more for the 
 land they cultivated." Mr." Hodgson pointed out that " the ' 
 first principle of the permanent settlement was to confirm 
 and secure these rights" and that "the proprietary right of 
 the Zemindars was no more than the right to collect from the 
 cultivators that rent which custom has established as the 
 right of Government ; and the benefit arising from this right 
 was confined, first, to an extension of the amount, not the rate^ 
 of the customary rent by an increase of cultivation ; secondly, 
 to a profit in dealings in grain, where the rent may be rendered 
 in kind ; thirdly, to a change from an inferior to a superior 
 kind of culture, arising out of a mutual understanding of 
 their interest between the cultivator and proprietor." Mr. 
 Webbe, however, did not think it necessary to adopt Mr. 
 Hodgson's suggestion on the grounds that the rights of the 
 ryots would be best developed in the Courts, then for the first 
 time to be established, and that to suppose knowledge of 
 them would be suppressed by the acts of the Zemindars was 
 " contrary to the whole course of human experience." ^^ 
 
 84. As might be expected the safe-guards provided by 
 the permanent settlement regulations for 
 vid?dZ'tf°p^ecL" the protection of the rights of the ryots 
 of the ryot' 8 rights nuga- provcd entirely unavailing. No steps were 
 sures takenTn\8'i2!''^' ^^kcn to SCO that io accordaucc with these 
 regulations, puttahs and muchilikas were 
 exchanged between the Zemindars and their ryots and that 
 all cesses levied under various denominations were consoli- 
 dated into a single specific sum within two years from the 
 date of the permanent settlement. The ryots were mostly 
 illiterate peasants who could not understand written agree- 
 ments containing stipulations regarding rates of rent; and 
 the kurnams who were supposed to be the guardians of their 
 rights were in the pay of the Zemindars and had no motive 
 to help the ryots, even if they dared to do so. The ryots 
 themselves had for long periods of time been subjected to the 
 arbitrary power of the Zemindars and could not be expected 
 to become bold enough to try conclusions with them, by a 
 mere legislative declaration that they were free to do so. 
 The Courts, then for the first time established, and in which 
 the rights of the ryots were to be " developed," were also far 
 
 38 Vide Proceedings o£ the Board of Revenue, dated 2nd December 1864, No. 7843.
 
 230 
 
 too distant and inaccessible to be of any use to persons who 
 had never left their villages, nor known any other judicatory 
 than their own caste punchayets. The powers possessed and 
 arbitrarily exercised by the Zemindars of forcibly procuring 
 the attendance of the ryots and of ejecting them for not ac- 
 cepting puttahs offered had been distinctly legalized. The only 
 course open ii> the circumstances for affording effectual pro- 
 tection to the ryots was for Government itself to have settled 
 the rents payable by the ryots and recorded them carefully. 
 The Government of the day had, however, too much of other 
 urgent work on hand to enter on this laborious and difficult 
 enquiry. It was therefore not at all surprising that the 
 Board of Revenue reported in 1820 on the condition of the 
 Zemindari ryots as follows : 
 
 "The Board are assured, not only from the reports of 
 officers deputed to enquire into complaints in the Provinces, 
 but from other unquestionable sources of information, that 
 the great body of ryots is not in that state of ease and secu- 
 rity in which the justice and policy of the British Government 
 mean to place them. In general, the ryots submit to oppres- 
 sion and })ay what is demanded from them by any person in 
 power rather than have recourse to the tedious, expensive 
 and uncertain process of a law-suit. The cases in which they 
 are sufferers are so numerous, various, intricate and technical, 
 — they and their witnesses are so far from the seats of the 
 Courts of Judicature — delays are so ruinous to them — they 
 are so poor, so averse to forms, new institutions and intricate 
 modes of procedure — they are so timid and so simple a race, 
 that it is necessary for the Government to endeavour to 
 protect them by a summary and efficacious judicial procedure ; 
 and it is evident that the officer entrusted with the general 
 government of the Province, as having the greatest and most 
 immediate interest in the welfare of those under his govern- 
 ment, and as the only officer having a free and full intercourse 
 with them, should be vested with the duty of conducting 
 these summary proceedings. It is necessary, therefore, in 
 the opinion of the Board to provide by regulation, first, for 
 the protection of the ryots, the great object of all our pro- 
 vincial institutions, and indeed of civil government in the 
 country, but one most difficult of attainment ; and for that 
 purpose the Collector or other officer entrusted with the 
 general government of the Province, his assistants when he 
 delegates his authority to them, and the native officers acting 
 by his orders should have primary and summary j^urisdiction 
 in all disputes between Zemindai-s and their under-farmers and 
 ryots regarding rates of assessment, occupancy of land, and
 
 231 
 
 payment of revenue, and that they should hold a revenue 
 Court for the investigation and settlement in the first in- 
 stance of such disputes, custom or special agreement and 
 should regulate the demand of the Zemindar against the 
 ryot. The Zemindar should not eject the ryot from his land, 
 unless the ryot should refuse to pay the stipulated rent as 
 soon after the beginning of the season for the settling for the 
 cultivation of the year, as may be reasonable and customary ; 
 nor should the Zemindar demand more than the customary 
 or stipulated waram or rent." 
 
 In accordance with the Board's recommendations. Re- 
 gulation 4 of 1822 was passed which inter alia provided (1) 
 that Collectors should summarily enquire into all disputes 
 between Zemindars and ryots regarding rates of rent; (2) 
 that no property attached for arrears of rent could be sold 
 unless puttahs had been granted, tendered or refused, nor 
 until notice had been given to the Collector and leave ob- 
 tained for the sale ; (3) that no ryot could be ejected from 
 his land without the Collector's permission on the ground that 
 he refused to accept a puttah offered to him ; (4) that if the 
 Collector found on examination that the puttah tendered by 
 the Zemindar was just and correct, the ryot might be ejected, 
 unless he assented to the terms J but if the rate should exceed 
 the just rate prescribed, an order should be issued prohibiting 
 the ejectment and requiring the issue of a proper puttah 
 within one month, under penalty ; (5) that suits preferred in 
 the Zillah Courts for arrears of rent were to be rejected 
 where no puttah had been granted unless it were proved 
 that a puttah had been offered and rejected, or that both 
 parties had agreed to dispense with the use of puttah and 
 muchilika ; and (6j that Collectors might refer disputes relat- 
 ing to rates of rent or to occupancy of land to village or 
 district Punchayets for decision. The designation in the 
 permanent settlement regulations of the right of Zemindars 
 as "proprietary right" being calculated to prejudice the 
 rights of the ryots, it was declared by Regulation 4 of 1822 
 that in passing the former regulations Government had no 
 intention of authorizing any infringement or limitation of any 
 established rights of any classes of its subjects. 
 
 Sir Thomas Munro, in his famous minute on " The condi- 
 tion of the Country " in 1824, has described the condition of 
 the ryots in Zemindaries in the Northern Circars at this 
 time as follows : 
 
 " When these districts came into our possession, one part 
 of them was in the hands of Zemindars and the other and
 
 232 
 
 most valuable part was in the hands of Government, and has 
 since, by the permanent settlement, been made over to new 
 Zemindars of our own creation. As in these provinces no 
 fixed assessment has been introduced, nor the rights of the 
 ryots been defined, the ryots can never become land-holders 
 nor their lands acquire such a value as to make them saleable. 
 It may be said that they have a right to be assessed only 
 according to ancient usage, and that this right will secure 
 them from undue exaction, and give them the same facilities 
 as the ryots of the Government districts of rendering their 
 land a valuable property ; but many causes combine to prevent 
 this. The ancient usage was different in every little district 
 or even village. It is not recorded or defined, and is very 
 little known to us. It is, I believe, in the Northern Circars 
 very generally so high as to leave the ryot no more than the 
 bare recompense of his labour and stock, and thus to preclude 
 his ever obtaining any portion of a land-lord's rent. Even sup- 
 posing that usage did leave to the ryot some surplus as land- 
 lord's rent, the Zemindar might not permit him to enjoy it. 
 He migfht raise the assessment. If he were an old Zemindar 
 or hill Rajah, the fear of violence would deter him (the ryot) 
 from complaining. If he were a new Zemindar, the ryot 
 would, nine times in ten, submit quietly to the loss, not from 
 fear of personal injury, but from the well founded fear of 
 losing his cause in Court. He knows that the influence of 
 the Zemindar would easily procure witnesses to swear falsely 
 on the question of ancient usage, and that they would be 
 supported by the fabricated accounts of the kurnam, who is 
 entirely under the authority of the Zemindar, and that if he 
 even gained his cause, it would be of no advantage to him, 
 as the Zemindar, without transgressing any law, would be 
 able to harass him in many ways and make his situation 
 unco mf or table . ' ' 
 
 Notwithstanding these drawbacks, the rights of the ryots 
 in this Presidency, do not appear to have suflTered quite to 
 the same extent as in Bengal for three reasons ; viz., first, 
 that it was all along acknowledged here that the rights of 
 the ryots were distinct from and independent of those of the 
 Zemindars ; secondly, that the maximum rent demandable 
 by the Zemindar was limited to the rent paid in the year 
 preceding that in which the settlement was made, instead of 
 being regulated by the indefinite pergunah rates as in Bengal ; 
 and thirdly, the maintenance of a record by kurnams or 
 village accountants facilitated to some extent the ascertain- 
 ment of the proper rates of rent. Even before the enact- 
 ment of the Regulations 4 and 5 of 1822, the Sudder Court (of
 
 2Zi 
 
 whicli Mr. Green way was one of the judges) had in several 
 decisions declared that Zemindars had no power to alter the 
 rate of division of crop obtaining in the year preceding the 
 permanent settlement, although the money value of the 
 Zemindar's share of the crop was a matter to be settled by 
 mutual agreement by the Zemindars and ryots and to be 
 entered in the puttahs issued to the latter, and that by the 
 Act of permanent settlement, the government transferred to 
 Zemindars " the proprietary right exercised by itself " and 
 that " it could not do more without infringing the rights of 
 others." '' 
 
 85. The enactments passed in 1822 continued to regulate 
 
 the relations between Zemindars and ryots 
 
 ^^Rent legislation in ^^^^^^ jgg^ ^^len they wcrc supcrscdcd by 
 
 Act VIII of 1865. The immediate occa- 
 sion for amending the old law was the necessity for the 
 provision of summary remedies to enable Inamdars to recover 
 their rents from their tenants, as the procedure prescribed 
 by the old regulations was understood not to be apphcable 
 to estates which did not pay revenue to Government. The 
 reduction of assessments granted by Government in the case 
 of ryotwar lands and the great rise which had also taken 
 place in the value of the ryot's interest in land had brought 
 into existence a class of sub-tenants under ryotwar holders, 
 and it became necessary to provide for the recovery of the 
 rent due by such sub-tenants. While the proposed legislation 
 was under the consideration of the Madras Legislative Coun- 
 cil, Mr. Carmichael, the Collector of Vizagapatam, brought 
 to the notice of the Board of Revenue a decision which had 
 been passed by Mr. Collett, the District Judge, and which 
 raised very important questions respecting the right of the 
 Zemindar to enhance the rents payable by his ryots. A 
 Zemindar of a permanently settled estate had applied to the 
 Collector for the issue of an order for ejectiug certain ryots who 
 had refused to accept puttahs providing for the payment of en- 
 hanced rent. The Collector rejected the claim on the grounds 
 that the Zemindar's demands on the ryots were absolutely 
 hmited by the Eegulations 28 and 30 of 1802, and that rent 
 could not be enhanced beyond the $ums entered in the puttahs 
 issued in accordance with the provisions of those regulations. 
 Mr. Collett reversed the Collector's decision holding that sec- 
 tions 8 and 9 of Regulation 30 of 1802, which provided a limit 
 of time for the issue of puttahs on demand and prescribed the 
 
 ''^ See decisions quoted by the Board of Revenue in thcif Piocecdingi of 2nd 
 December 1864, No.'7843. 
 
 80
 
 234 
 
 mode of adjusting disputes regarding rates of assessment, 
 were intended to apply only to the first occasion of issuing a 
 puttah after the permanent settlement of an estate, that there 
 was nothing in the regulation to preclude an enhancement of 
 the demand in future years, that, on the contrary, such 
 changes were contemplated was shown by the fact that the 
 regulation provided for puttahs being renewable every year, 
 that the terms "just and correct rate" and the "just rate 
 prescribed" used in Regulation 5 of 1822 were equivalent to 
 " fair and equitable " rate, and that to suppose that rents 
 were intended to be limited by the Regulations of 1802 was 
 incompatible with the declaration in Regulation 4 of 1822, 
 viz., that those regulations were not intended to define, 
 infringe, or destroy the rights of any parties. 
 
 Mr. Collett's decision left it in doubt whether he objected 
 to the money value of the share of the produce representing 
 the Zemindar's rent being considered as limited, or to the 
 share of the produce itself being limited ; and also whether 
 the " fair and equitable rate " referred to by him had reference 
 to rents payable according to customary usage, or to rents 
 determined by the application of the principle of competition. 
 In the latter case, the value of the ryot's interest in the land 
 would, of course, be destroyed. A similar case had arisen in 
 Bengal about the same time and it was decided that the 
 principle of competition was to be appealed to in settling 
 rates of rent and it was only in 1865 that this decision was 
 overruled by the Calcutta High Court in what is known as 
 the " Great Rent case." The Madras Board of Revenue, 
 justly apprehending that the rights of the ryots were imper- 
 illed by Mr. Collett's decision, exhaustively reviewed the 
 whole question and communicated their views to the Select 
 Committee of the Legislative Council appointed to settle the 
 lines of the proposed legislation.^"^ In the report submitted 
 by the Committee they stated that they unanimously agreed 
 with the Board that the Regulations of 1802 were intended 
 to protect the occupants of land under Zemindars by fixing 
 the maximum rent demandable from them and forbidding 
 their ejectment so long as the rent was paid, and that Regu- 
 lations 4 and 5 of 1822 were passed for the increased protec- 
 tion of such occupants of land, in consequence of passages 
 in the Regulations of 1802, which made mention of a pro- 
 prietary right having been conferred on Zemindars, having 
 led to doubt and misapprehension as to the rights of the 
 
 ''^*' The conclusions arrived at by the Board in their Proceedings, dated 2nd Decem- 
 ber 1864, No. 7848, are printed as appendix VI.-B. (1). '
 
 235 
 
 ryots. Experience, however, having shown that even these 
 regulations were not free from ambiguity, the Committee was 
 of opinion that the main principles on which disputes regard- 
 ing rent should be decided should be clearly laid down as 
 follows : — first, ryots who held in their own right hereditarily 
 or by custom of the country, at a fixed or long established 
 rent, were to be protected ; secondly, a division of the crop 
 between the land-holder and the tenant formed the ancient 
 basis of rent, and the local rate of this division was to be 
 referred to in cases of dispute, when other means of settling 
 the rate of rent to the satisfaction of both parties proved 
 unsuccessful ; thirdly, land-holders were to be at liberty to 
 arrange their own terms for rent in the case of unoccupied 
 lands. The Committee was further of opinion that voluntary 
 engagements regarding rent between the land-lord and tenant 
 should be respected and that any other course would lead to 
 great confusion and wrong. As regards the terms on which 
 the occupation of waste lands was to be allowed, the Com- 
 mittee remarked, " While it is essential to protect the rights 
 of old tenants, it would injure the due rights of the land- 
 holder and oppose the advancement of the country to declare 
 that he cannot let out unoccupied land to the best advan- 
 tage. By introduction of valuable new products, such as 
 indigo, silk, coffee, oil-seeds, &c., and by improved means of 
 communication in some parts of the country, lands have at- 
 tained an enhanced value, and as a land-holder can refuse 
 application for waste lands, it would be anomalous and in- 
 jurious to declare that he can only arrange for their culti- 
 vation by cultivating them himself or leasing them out on 
 inadequate rent founded on an ordinary and obsolete grain 
 crop. The Committee, therefore, proposed to enact the 
 following rules, viz., (1) all contracts for rent, express or 
 implied, shall be respected; (2) where no express contract 
 exists, the payment of rent continuously at the same rate for 
 12 years is to be considered an implied contract to hold 
 permanently at that rate ; (3) in districts or villages which 
 have been surveyed by the British Government and in which 
 a money assessment has been fixed on the fields, such assess- 
 ment is to be considered the proper rent, where no contract 
 for rent, express or implied, exists; (4) where no express or 
 implied contract has been made between the land-lord and 
 tenant, and where no money assessment has been fixed on 
 the fields, the rates of rent shall be determined according to 
 usage, and^where such usage is not clearly ascertainable, then 
 according to the rates established or paid for neighbouring 
 lands of similar description and quality ; provided that if
 
 236 
 
 either party be dissatisfied with the rate so determined, he 
 may claim that the rent be discharged in kind according to 
 the Waram, i.e. according to the established rate of the vil- 
 lage for dividing the crop between the Government or the 
 land-lord and the cultivator ; (5) in the case of immemorial 
 waste or of lands left unoccupied either through default or 
 voluntary resignation, it shall be lawful for land-holders to 
 arrange their own terms of rent. As regards the question 
 of ejectment, the Committee provided that tenants of Zemin- 
 dars wei'e not to be ejected except by an order of the Collector 
 or the decree of a Court. This provision, however, they 
 explained in their report to be intended " to protect ryots 
 who had land in their own right hereditarily or by the custom 
 of the country against sudden ejectment" and that "the 
 case of temporary tenants who refused to vacate land or 
 who resisted the land-holder's entry when the term of their 
 tenancy had expired did not belong to this bill" but was to 
 be dealt by the Civil and Criminal Courts. 
 
 When the Bill was passed into law, the provision to the 
 effect that payment of rent at a certain rate for a period of 
 12 years should be taken to import an implied contract to 
 pay at that rate for ever was omitted, but the reasons for 
 the omission have not been stated. On the other hand, the 
 absolute right intended to be conceded to land-holders to 
 arrange their terms of rent in the case of waste lands was 
 qualified by the proviso that this provision was not to affect 
 any special rights which, by law or usage having the force of 
 law, are held by any class of persons in such waste or unoc- 
 cupied lands. 
 
 86. Act|YIII of 1865, instead of clearing up the ambi- 
 „,„ oruities in the law of land -lord and tenant 
 
 Failure of Act VIII «=-,.. . .. „- 
 
 of 1865 to protect the and placiug the rights ot the ryots on a 
 rightB of zemindari ^^11 uuderstood basis, has had the effect 
 ^^^ ' of involving the relations of Zemindars 
 
 and ryots in greater confusion than they were in before. By 
 declaring that all contracts " express" or " implied " are to be 
 enforced, it has opened a wide door for doubts and conten- 
 tions of all kinds. It has entirely missed its object which 
 was to accord legislative recognition to the principle that 
 was understood.^to be part of the common law of the country, 
 viz., that the ryots were entitled to hold the lands in their 
 occupation as long as they paid the customary rent accord- 
 ing to the established rates. As regards immemorial waste 
 and lands left unoccupied by default or voluntary resignation, 
 it has established a presumption in favour of the Zemindar's
 
 237 
 
 right to let it on any terms he pleased, by throwing on per- 
 sons contesting this right the burden of proving that they 
 had special rights recognized by law or usage having the 
 force of law which derogated from the Zemindar's right. The 
 decisions of the High Court have also not tended to clear up 
 the obscurities and supply the deficiencies in the law, and the 
 frequent fluctuations in the views entertained by the courts as 
 regards the rights of the ryots h-ave, if anything, rendered the 
 law more uncertain. In some of their earliest decisions, the 
 High Court had upheld the view that a ryot was entitled to 
 retain possession of the land as long as he paid the custom- 
 ary rent or share of the produce. Subsequently a change came 
 over the views of the High Court and they ruled that a ryot 
 " holding " as it is called " under a puttah " was not entitled to 
 hold the land for a longer period than that during which the 
 puttah was in force, unless he could prove a special contract, 
 custom or usage to the contrary. This decision was arrived at 
 in the case of lands paying revenue direct to Government and 
 the express declarations of Government to the contrary in 
 their Standing Orders were set aside as not " constituting 
 rights enforceable at law." In recent decisions there has been 
 a tendency to take a more favorable view of the rights of 
 ryots in the case of ryots paying revenue direct to Govern- 
 ment by regarding the ryot's right as arising from occupation 
 of the land and not the puttah which simply defines the de- 
 mand for rent on the ryot for the period specified therein, 
 and not the duration of the occupancy. But still it is impos- 
 sible to say what view the courts would take as regards the 
 right of a Zemindari ryot to hold the land at the end of the 
 term of any subsisting puttah.^"' If the Zemindar sued for 
 ejectment on the ground that the ryot would not pay en- 
 hanced rent, the suit would probably go against him unless 
 he showed that the demand for enhanced rent was justified on 
 the score of the rent-value of the lands having been enhanced 
 by improvements effected by him. If, on other land, the ryot 
 were turned out of the holding on the ground that he had no 
 right to hold the land beyond the term of the puttah, he 
 would have to show either that he derived his title from some 
 one who had occupancy right in the land prior to the perma- 
 nent settlement of the estate — manifestly almost an impossi- 
 bility, — or that the circumstances of the case were such as to 
 *' imply " a contract to allow him to hold the land, and this is 
 a hardship, as there is no certain criterion to determine what 
 circumstan^ces will be accepted by the courts as leading to 
 
 1"' Vide note oij tbp decisions regarding the rights of the ryots ; appendix VI.-B. (2),
 
 238 
 
 the inference that there was an " implied" contract. This 
 state of the law is an incentive to violent proceedings and 
 places at a disadvantage land-holders who are willing to 
 allow ryots to retain their holdings on payment of enhanced 
 rents. In some respects, the decisions of the court have dis- 
 allowed the just rights of the Zemindars to enhance money 
 rents with reference to the increase in the prices of produce, 
 while the Government itself exercises such a right in the 
 case of the ryots it directly deals with. The law as regards 
 the rights of the Zemindar to regulate the mode of cultiva- 
 tion or the nature of the crops grown, and of the tenants to 
 make improvements and obtain compensation therefor when 
 they are evicted, is unsettled. In two other respects, the 
 landlord is placed at a disadvantage. He cannot sue for 
 rent either in a Revenue court or in an ordinary Civil court, 
 unless he offers to the tenant such a puttah, as he is bound to 
 accept. It often happens that there is a dispute about the 
 terms of the puttah leading to litigation extending over 
 several years, as to whether the puttah offered by the land- 
 lord was a proper one or not. If it is decided by a court that 
 any condition in a puttah offered was an improper one, to what- 
 ever extent the claims of the tenant might be disallowed in 
 other respects, the landlord forfeits the rent for the whole 
 period of litigation. Again, under the existing law, the land- 
 lord's claim for rent is not recognized as giving him a lien on 
 the land in the hands of the stranger to whom the occupancy 
 right mi'>'ht be transferred. This acts as an incentive to 
 fraudulent conduct on the part of the tenant and, by rendering 
 the recovery of rent difficult in cases in which a transferable 
 occupancy right exists, makes it the interest of the landlord 
 to endeavour to destroy it. There are, besides, various other 
 flaws and omissions in the Act which promote disputes 
 between landlords and tenants and embitter their relations, 
 and the Act itself has been so carelessly drawn up that 
 Mr. Justice Hollo way once declared judicially that he did not 
 in the least profess to understand its provisions. 
 
 87. The result is what might be expected, and there can 
 
 Present unsatisfactory ^C UO doubt that the prCSCUt COudition of 
 
 condition of the Zemin- the Zemiudari ryots is very unsatisfactory. 
 ^''^ 'y°*'- In the Southern districts where the occu- 
 
 pancy rights of ryots have all along been conceded, the ryots 
 hold their own against the Zemindar and often defy them. In 
 the Northern districts, the ryots are in a miserable condition 
 and the Zemindars have everything their own wtvj. There 
 is abundant *^^estimony to this effect. Mr. Forbes, the Col-
 
 239 
 
 lector of ^^^ Ganjam, shortly after the famine of 1866 wrote, 
 " The thirteen Oorya Zemindars of Ganjam are, with few 
 exceptions, the most grasping landholders and the least 
 enlightened proprietors in the world ; they take 50 per cent, 
 of the crops and lay out little or nothing in improving or in 
 maintaining irrigation works. They lease their villages to 
 middle-men, and the under-tenants are consequently deprived 
 of all chance of accumulating capital and are little better 
 than serfs of the soil ; the bulk of the ryots in Zemindari 
 estates would hail a change to Government management with 
 joy." We have more recent information as regards the con- 
 dition of the ryots in the Nuzvid Zemindari in the Kistna 
 delta. The estate was placed under the management of the 
 Court of Wards and the manager of the estate, Mr. Singarazu 
 Venkata Subbarayudu, a Vakil of the High Court, reported 
 in 1879 in the following terms of the manner in which the 
 rents of the ryots had been screwed up by the previous 
 Zemindars. " Once every 5 years it is usual to fix a certain 
 amount of sist upon every village, taking into account the 
 circumstances then existing, the nature of the soil and the 
 quality of the crops, and to take joint muchilikas with 6 dry 
 or 3 wet kistsfrom the pettanadars (Headmen) andkurnums, 
 &c., of every village with conditions following : — (1) the lands 
 shall not be relinquished before the prescribed term ; (2 ) for 
 losses arising from excess or failure of rains, they shall hold 
 themselves responsible and the prescribed rent shall be paid 
 whether the land be cultivated or not ; (3) payments made 
 after time shall be charged interest at 1 per cent, per men- 
 sem ; (4) no cultivation shall be carried on without obtaining 
 a puttah after the termination of the prescribed time ; (5) 
 individual muchilikas shall be presented apportioning the 
 total amount of the muchilikas on the different descriptions of 
 land, viz., best, middling, and inferior; (6) all shall jointly 
 
 and severally be responsible for the whole rent 
 
 The tarams are subject to alteration when the villages are 
 re-rented at the end of the cowle in the same manner as they 
 
 are fixed at the beginning Some villages have the 
 
 same rate for the best and worst sort of lands, while others 
 have the least rate for the best land and the highest rate for 
 inferior land. These rates are now in force. The best lands 
 are possessed by kurnums, pettanadars and rich inhabitants. 
 It is most irregular that there should be hundreds of rates 
 in every taluk, and that rates should be diff'erent for the 
 same kind of land according to the caste, loyalty and otherwise 
 
 1"- Fide appendix VI.-B. (3).
 
 240 
 
 of the landholder." In forwarding this report to the Court 
 of Wards Mr. Horsfall, the Collector, noted by way of com- 
 ment : " The system is profitable, no doubt, to the Zemin- 
 dar, but faulty and oppressive in the extreme. No tenant is 
 secure of his tenure for more than the period of his lease, and 
 any improvements that he may have effected during the 
 period of tenure are turned against him and made the reason 
 for raising his rent ; should he not agree, his lands are given 
 to another, and he is ousted. Besides this, under the system 
 of joint liability, he was held responsible for land with which 
 he had really nothing to do. It is by a system like this that the 
 rents have been doubled f during the past 10 years. Should 
 no one be willing to pay the price demanded, the lands were 
 included under Kamatam or home farm lands. The conditions 
 speak for themselves." Mr. Wynch who was also in charge 
 of this estate writes in 1890 : " No remissions are granted 
 for lands left waste or for loss of crop {vide condition of 
 puttah) ; if the tenant does not pay the rent in full, it re- 
 mains in the accounts as an arrear against him ; and this 
 system of never writing arrears off the accounts is productive 
 of the greatest oppression. Payments are credited to arrears, 
 in order that the right to distrain for the current arrears may 
 be kept alive. If this is not done and if the tenant cannot 
 obviously pay the arrears accumulated against him, — for it 
 is observed that they run on from generation to generation 
 — and supposing that one tenant dies or deserts his holding, 
 the incoming tenant is made to bind himself to pay the 
 arrears due against the holding ; then a bond will be taken 
 from the tenant, conditioned for the repayment of the whole 
 debt, with interest, by instalments within perhaps 12 or 20 
 years or more, as the circumstances require; if default is 
 made in payment of any two consecutive instalments the 
 whole amount of the bond immediately becomes due." As 
 regards the relative condition of Government and Zeraindari 
 ryots, Mr. Subbarayudu writes in 1879 : " There is no doubt 
 that the estate ryot is poorer than the Government ryot. 
 The reason is to be found in the difference of sist and the 
 difference of administration. Before the expiry of the cowle 
 there can be no alteration of sist, but after it the Zemindar 
 is at liberty to enhance it. Under Government besides occa- 
 sional remissions, arrears are written off as irrecoverable 
 after lapse of some time ; and the ryot is annually allowed to 
 relinquish lands which he cannot pay for. These privileges 
 are not conceded to the Zemindari tenant. Unless the 
 agreement is executed for the rich and poor lands together, 
 no fresh lease is granted on the expiry of a leaGe. The poor
 
 241 
 
 lands cannot be set aside. The ryot is always indebted to 
 
 the Zemindar Money is recovered according to 
 
 his produce ; he is always fettered." The report, printed as 
 appendix VI. -B. (4), of Mr. Cotton who was employed as a 
 relief officer during the famine of 1876 shows the miserable 
 condition of the ryots in the Kalahasti Zemindari. In the 
 Southern districts the condition of the Zemindari ryots is not, 
 as already observed, so bad as in the Northern districts. 
 Nevertheless even here, it seems to be the case that Zemin- 
 dari ryots are worse off than Government ryots, taking tracts 
 of similar climatic conditions for comparison. As regards 
 the Ramnad Zemindari, Mr. 'Rajaram Rao, who was for 
 several years the manager of the Zemindari, states that the 
 condition of the ryots in this estate is not as good as that 
 of the Government ryots and that this is due partly to 
 natural disadvantages and partly to the evils incidental 
 to the' system of sharing the crop which is in force. He 
 remarks, " the evils of ' Waraput ' or sharing system are 
 too obvious to need comment. Under this system, a ryot, 
 with whatever good and efficient arrangements made, is 
 necessarily left at the mercy of the village and taluk officials 
 for getting his crop home. He is not at liberty to reap his 
 crops, harvest them and take his produce of his own accord, 
 but must obtain the permission of the estate officials for every 
 
 one of those purposes Attention was not paid 
 
 to the proper supervision of harvest, &c., and to the punctual 
 collection of rents. The result was that the ryots contracted 
 a habit of dishonesty and unpunctuality in their dealings and 
 the officers were habituated to corruption and foul play." ^"^ 
 There are, of course, estates like Ettiyapuram in which the 
 condition of the ryots is nearly as good as in the Govern- 
 ment taluks, but this is mostly due to the fact of these estates 
 having had the benefit of several years of careful adminis- 
 tration by the Court of Wards during the minority of the 
 owners. The Ettiyapuram estate was surveyed, and money 
 assessment was introduced in lieu of the sharing system to 
 the great advantage of both the Zemindar and the ryots. 
 
 88. An amendment of the law regulating the relations 
 
 Suggestions as to betwocn Zomiudars and tenants is there- 
 amendment of the law fore Urgently necessary to prevent further 
 
 of landlord and tenant. -^j^^^ ^^ ^^^ ^^^^,^ ^-^j^^g^ ^^^ ^ l^-jj ^^g^^ 
 
 on the lines of the recent legislation in Bengal is now under 
 the consideration of Government. I have mentioned in a 
 
 . « — — - 
 
 ^"s For a graphic description of the evils of the sharing system by Mr. A. Seshayya 
 Sastriar, C.S,I., De>Fan of Pudnkota, see appendix VI.-B. (5). 
 
 31
 
 242 
 
 note printed as appendix VI.-B. (6) the points in regard to 
 whicli provision should be made in the new law. The history 
 of the previous legislation, which I have attempted briefly to 
 sketch in the preceding paragraphs, will, I trust, have shown 
 the defects in the present law and the causes of its failure. 
 The main cause seems to me to be the idea of the legislature 
 that any attempt on its part to define, in an unequivocal 
 manner, the relative rights of Zemindars and ryots might 
 necessitate interference with " rights of property " and " free- 
 dom of contract " and that if it were made imperative that 
 all contracts between landlords and tenants should be re- 
 duced to writing, and machinery provided for summarily 
 deciding disputes between them, matters would adjust them- 
 selves in the manner best calculated to secure the public in- 
 terests. This view of the case assumes that the Zemindar is 
 the full owner of the lands in the Zemindari and that the 
 rights of the ryot are derived through him. The assumption, 
 as will be seen from the account already given of the origin 
 of the ryot's property, is unfounded. The share of the 
 produce which the Government was entitled to take was 
 always limited in lands occupied as well as waste reclaimed, 
 and the rights conferred on Zemindars were no higher than 
 the rights possessed by the Government itself. Any doubts 
 which the inaccurate language of the permanent settlement 
 regulations might have given rise to in this respect were 
 fully cleared up by the legislation of 1822. The ryot's 
 interest in land had, however, no saleable value inmost parts 
 of the presidency at the time of the permanent settlement. 
 The Zemindar's interest was likewise of small value as he 
 had to pay the major portion of his receipts to Government. 
 Now, owing to improved administration and the general 
 progress of the country, and more especially owing to the 
 great rise in the value of agricultural produce consequent on 
 the expansion of foreign trade which has taken place during 
 the last 40 years, the value of both the Zercindar's and ryot's 
 interests has greatly increased. The question involved in 
 according legislative protection to ryots is therefore not what 
 shall be taken away from the Zemindar and given to the 
 ryot, but how shall the Zemindar, while being allowed to 
 enjoy to the fullest extent the enhanced value of bis share 
 of the produce, be prevented from appropriating, as far as 
 legislation can do so, the enhanced value of the ryot's share. 
 The experiment of allowing the ryots to establish their rights 
 in the courts has been tried, and it has grievously failed. In 
 the first place, the courts can act only on the evidence pro- 
 duced before them, and in a contest between a rich and
 
 243 
 
 powerful Zemindar and a poor ignorant ryot, the odds are, 
 of course, immensely in favour of the former. The rights 
 too, whose origin has to be referred ^"^ back to times when 
 there was no settled Government or regular administration 
 of law, are not capable of easy proof or even of exact defi- 
 nition. In this state of things, the natural result is that 
 whatever is not proved to belong to the ryot is taken to 
 belong to the Zemindar. The only effectual way of protect- 
 ing the ryot, then, is to define his rights precisely by legis- 
 lation and to allow him freedom to contract himself out 
 of them only to a limited extent, seeing that in the case of 
 cultivators cultivating for subsistence, with no alternative 
 occupation to fall back upon or education or means to hold 
 their own in a contest with their landlords, there can be no 
 real freedom of action. Bearing the.se considerations in 
 mind, the principles on which the legislation should be based 
 may be thus stated : — According to the common law of the 
 country, there are two distinct interests in land recognized, 
 viz., the Melvaram and Kudivaram. Melvaram belongs to 
 the Government or its assignee the Zemindar ; and the 
 Kudivaram to the ryot. There are also two distinct classes 
 of land, viz., one Pannai, Kamar, home farm or private lands, 
 and the other Aiyan, Jeroyati, or peasant lands. In the 
 first class of lands both the Melvaram and Kudivaram rights 
 belong to the Zemindar ; and in the second, the Melvaram 
 right alone. The bulk of the lands belong to the latter class, 
 and so the presumption must be that land not proved to be 
 private land is peasant land. This rule should be applied to 
 cultivated land as well as the waste. As regards waste, 
 the Zemindar should be entitled to apply to a Civil Court 
 for permission to enclose waste lands and treat the en- 
 closed lands as " private " in view to forming planta- 
 tions, establishing factories, growing jungles, &c. The Court 
 should in such cases give notice to the ryots to state any ob- 
 jections they may have to the enclosure and, after hearing 
 their objections and making such arrangements as may be 
 found necessary to reserve sufficient area of waste land to meet 
 the requirements of the ryots as regards bond fide increase 
 of cultivation and pasturage, it may grant the application. 
 In regard to the grant of unenclosed waste lands,^°^ the 
 
 '°* Vide extract (appendix VI.-B. (7)) from Sir H. S. Maine's speech in the Legisla- 
 tive Council of India for a full explanation of the difficulty of ascertaining the rights 
 of ryots when there is no settled Government. See also extracts from Sir Frederick 
 Pollock's " Land Laws " regarding the manner in which the rights of tenants became 
 gradually abridged (appendix VI.-B. (8)). 
 
 '^"^ As to the discussions in the case of Government waste lands and the final settlement 
 of the question — vide note printed as appendix VI.-B. (9).
 
 244 
 
 Zemindar's powers to grant them for cultivation must be 
 assimilated to those exercised by Government. It would 
 certainly be difficult to control the Zemindar's discretion in 
 granting waste lands for cultivation or to prevent his making 
 a profit out of them, but the recognition of the principle that 
 the waste lands are not at the Zemindar's unrestricted dis- 
 posal is necessary to prevent the lands being rack-rented and 
 lands resigned being added as a matter of course to " private 
 lands ;" otherwise all peasant lands as they become vacant will 
 be converted into private lands. The ryot should have the 
 right to adopt such modes of cultivation and raise such crops 
 as he finds profitable, and to make improvements to land, 
 provided he pays the customary rent determined with refer- 
 ence to the standard crop of the village. As regards the rents, 
 though these have been pushed up in the Northern districts 
 so as to absorb nearly the whole of the increase in the value 
 of the ryot's share of the produce that has resulted from the 
 general progress of the country in recent years, still a sudden 
 reduction of them would cause hardship to the Zemindars. 
 Existing rents must, therefore, be recognized, and the efforts 
 of legislation directed towards securing to the ryot the enjoy- 
 ment of any increase in the value of his share of the produce 
 which may accrue to him in the future. As regards the 
 detailed provisions to be made for this purpose, the note printed 
 as appendix VI.-B. (6) should be referred to. The most note- 
 worthy point in connection with this question is the rule laid 
 down to the effect that rents shall not be enhanced even with 
 the consent of the ryot to a greater extent than 12^ per cent, 
 at a time, and that rent once enhanced shall not be liable to 
 alteration for 15 years. Zemindari ryots should be conceded 
 the right to transfer their holdings after giving due notice 
 to the Zemindars. This right is possessed by the ryots in the 
 Southern districts, and though it is disputed by the Zemindars 
 of the Northern districts, it should be recognized by legislation 
 as it is the necessary consequence of the limitation of the 
 demand of the Zemindar and the creation of a saleable interest 
 for the ryot in the land. Public interests require that there 
 should be no obstacles interposed to the consolidation of 
 holdings for purposes of profitable cultivation ; and the Zemin- 
 dar himself may have to purchase ryot's holdings for such 
 purposes. He loses nothing by conceding the right, more 
 especially when he is not allowed to annex lands vacated to 
 his " private lands." His interest will be amply protected by 
 making him retain a lien for the rent due on the land in the 
 hands of the purchaser. To prevent the Zemindar from allow- 
 ing rent to accumulate by withholding remissions when due,
 
 245 
 
 it should be ruled that not more than three years' rent shall be 
 recovered by the sale of the ryot's interest in the land. As 
 regards " private lands " the Zemindar is to have full liberty 
 to deal with them as he likes. It seems to me that provisions 
 of the kind above referred to will, without injuring the rights 
 of the Zemindars, prevent, at all events, further encroachments 
 on the rights of the ryots in the future. These provisions 
 are based on principles recognized by the common law of the 
 country and they do not ignore existing facts and conditions. 
 The present unsatisfactory state of the law is injurious in some 
 cases both to the Zemindars and tenants ; and ^°*^ every day's 
 delay must add greatly to the difficulty of dealing with the 
 question. This is especially the case in the Northern districts 
 where lands have within the last two or three years greatly 
 increased in value by the opening of the Hyderabad Railway ; 
 and when the East Coast Railway is completed the value of 
 lands is likely to increase still further. If steps are not taken 
 betimes to secure a share of this increase of value for the 
 improvement of the condition of the Zemindari ryots, the 
 growth of vested interests will make it difficult or impossible 
 to do this in the future. Another measure which would 
 effectually protect the rights of the ryots without injuring 
 those of the Zemindars is the survey of Zemindaries. This 
 should be encouraged as much as possible, and the survey 
 should be carried out in all estates under the charore of the 
 Court of Wards. The Court of Wards now naturally hesi- 
 tate to carry out the survey in the Zemindari estates in the 
 Northern districts, as the rights of the ryots are still unde- 
 fined. When the new law is passed, this will no longer be 
 the case. 
 
 '89. There is also for consideration the question of pro- 
 ^ . , ^. tecting; by leo^islation larg-e Zemindari 
 
 Legislation to arrest *=" . "',-,■ i-. . -, 9 t 
 
 the rapid dismember- cstatcs m this rresidency trom dismem- 
 d'arfestlter"'' ^^°"'" ferment. Out of a total number of 849 
 permanently settled estates covering an 
 area of 27 J million acres, there are 135 estates covering an 
 area of 15^ million acres, which are supposed to be held 
 under the law of primogeniture and to be impartible. Some 
 years ago it was believed that the holders of these estates 
 had only a life interest in them, and that they could not alien- 
 ate or encumber the properties so as to have effect beyond 
 
 i"6 As regards the necessity for legislative interference to regulate the relations 
 between landlords and tenants in view of the rapid changes that are taking place in the 
 economic concVtion of the country — vide Extract from a speech of Mr. Ilbert on the 
 Bengal Tenancy Bill before the Legislative' Council of India in 188G (appendix VI.- 
 B (10)).
 
 246 
 
 their own lifetime. Subsequently tlie courts discovered 
 that the powers of a Zemindar were the same as those of a 
 manager of a Hindu family holding property in co-parcenary 
 under the ordinary law, with the exception that partition 
 could not be claimed by the junior members of the family 
 who were only entitled to maintenance out of the income of 
 the estate. The Zemindar, it was declared, could, like the 
 manager of an ordinary Hindu family, alienate the property 
 in satisfaction of debts incurred for necessary family pur- 
 poses, and that where there were no junior members, the 
 powers of alienation of the Zemindar were unrestricted. 
 Next, the Courts ruled that where the junior members of the 
 co-parcenary family were sons, the latter were bound by the 
 alienations made by the father even for debts not incurred 
 for family purposes, it being the pious duty of sons under the 
 Hindu Law to pay the debts of the father, provided they 
 were not incurred for immoral or illegal purposes. The rule 
 of primogeniture and impartibility was also declared not to 
 attach necessarily to the property on grounds of public pohcy 
 but was to be treated as a family custom liable to be annulled 
 with the mutual consent of the members of the family. The 
 question whether an estate was governed by the law of pri- 
 mogeniture or the ordinary law of equal division was thus 
 made to depend upon the facts of each case and the conduct 
 of the parties, there being no certain criterion laid down to 
 determine the point in any particular case without resort to 
 protracted litigation. Lastly, in a recent decision the Privy 
 Council has ruled that the Zemindar of an ancient and im- 
 partible estate is absolute owner and can dispose of it as he 
 pleases, the property being impartible only in the sense that 
 it is not divisible among the members of the family ; there is 
 thus nothing to prevent the Zemindar cutting it up into any 
 number of portions and alienating them at his will and 
 pleasure to the prejudice of the rights of succession of the 
 junior members of his family. These rapid changes in the 
 law, or at all events, in what was believed to be such by all 
 the parties interested in the question in this presidency, 
 have led to a great amount of litigation, the junior members 
 in the case of several estates which had hitherto been sup- 
 posed to be impartible having instituted suits for partition. 
 The Zemindars themselves are apprehensive that the unre- 
 stricted powers of alienation conceded to them will lead to 
 the rapid extinction of their estates and the decay of the in- 
 fluence and importance of their families which it was the 
 intention of the rule of primogeniture to conserve. This 
 apprehension seems well founded, for while in the case of
 
 247 
 
 ordinary ancestral property the power of alienation by the 
 
 managing member is restricted only to his fractional share 
 of the property, there is no such limit in the case of an im- 
 partible Zemindari ; and consequently the dismemberment of 
 impartible estates is likely to be brought about more quickly 
 than the dismemberment of properties to which the ordinary 
 rule of inheritance applies. This result could not have been 
 contemplated, whatever theory is adopted in regard to the 
 origin of the rule of primogeniture, i.e., whether the object 
 of the rule is taken to be the maintenance of the dignity and 
 influence of a certain official position, or the maintenance of 
 the dignity and influence of certain ancient families ; for to 
 secure the object in view, the estate must be inalienable from 
 the office in the one case, and from the family in the other. 
 The means adopted by the English landed aristocracy to 
 preserve the integrity of estates, viz., successive settlements 
 voluntarily made by the owner of the reversion of the estate 
 for the time being, as soon as he attains majority, are not 
 available to the Zemindars, as the Hindu Law does not per- 
 mit of the settlement of estates on ' unborn ' persons. In 
 fact, the ancient Hindu Law, as already observed, regarded 
 land as constituting ' an estate dedicated equally to the sup- 
 port of sacrifices to deceased members, as to the sustenance 
 of those living, and still to come into life ; ' and powers of 
 alienation are a modern development. It seems to me, there- 
 fore, desirable that with a view to prevent litigation and 
 dissipation of properties it should be declared by legislation, 
 after due enquiry by a commission, (1) which estates are 
 ancient Zemindaries subject to the rule of primogeniture 
 and of impartibility, and whether the rule attaches to the 
 estate or to the family which holds it at present; and (2) 
 that the powers of the holder of the estate for the time being 
 shall be those of the managing member of a Hindu 
 family governed by the ordinary law of succession as they 
 were understood to be before the recent Privy Council 
 decision. The modern Hindu Law seems to steer clear of 
 the evils of the strict entails of the English system as 
 well as of the restrictions on the powers of bequest of 
 self-acquired landed property imposed by the French Law on 
 the one hand, and on the other of unrestricted powers 
 of disposition of ancestral property in a purely agricul- 
 tural country where the vast majority of the population 
 has to subsist by the cultivation of land. The powers of 
 the managing member in family property to deal with it 
 for the purposes of its improvement are, under the Hindu 
 Law, unrestricted; but at the same time he is prevented
 
 248 
 
 from alienating the means of subsistence of the junior mem- 
 bers of his family including his own sons, while parental 
 control is, to some extent, preserved by the liability of the 
 sons to pay the debts of the father except in certain contin- 
 gencies ; and as regards self-acquired property, the acquirer 
 can do what he likes with it. In making the above remarks, 
 I have assumed that the preservation of these large estates, 
 which are found scattered in the midst of a vast multitude of 
 peasant properties, is a desirable object. I do not propose to 
 discuss the much vexed question whether the system of land- 
 holding in large estates or in peasant properties is the more 
 conducive to the general prosperity of the country. Each 
 system has its special advantages and disadvantages, and 
 as Dr. Walker in his book on Land and its Rent points out, 
 the most wholesome of national and economical organiza- 
 tions is perhaps that which admits of an admixture of large, 
 medium sized and small properties, those of medium size pre- 
 dominating. It is true that the Zemindars as a body have as 
 yet done nothing to assume their proper position as leaders of 
 social and industrial movements ; but in fairness to them, it 
 must also be remembered that to a great extent circum- 
 stances have been against them. They were most of them in 
 possession of unrestrained power in the beginning of the 
 century, and the necessities of orderly and civilized govern- 
 ment in the then existing state of the country required that 
 they should be deprived of all power and influence and rele- 
 gated to the position of landholders. The conditions also 
 of farming in this country, so dissimilar to those which 
 existed in England in the latter half of the last century, 
 were not such as to render high cultivation profitable. 
 Brought up in the old traditions, with no sphere of public 
 usefulness open to them to develop their better qualities or 
 enlarge their minds, they have hitherto, with some notable 
 exceptions, formed an idle and dissipated class. Recently, 
 however, a change has become perceptible. Several of them 
 are being educated, and the proceedings of the Landholders' 
 Association recently organized distinctly show that they are 
 beginning to realize their duties and responsibilities and to 
 feel that if they do not rise to the requirements of the pre- 
 sent regime, they will lose all social influence and importance 
 and be doomed finally to disappear. With the great increase 
 in population and expansion of an export trade, the necessity 
 for better methods of cultivation, such as those which only 
 rich landlords have it in their power to adopt, will become 
 greater and greater, and a sphere of usefulness will be opened 
 out to them in this direction as well as in the management
 
 249 
 
 of industrial enterprizes which peasant proprietors cannot be 
 expected to undertake. It would, therefore, not be right to 
 judge of the future usefulness of this class from what they 
 have done in the past ; and if they could be assisted to main- 
 tain their ground without the aid of legislation of any 
 drastic character involving violent interference with private 
 rights and weakening motives of self-help or personal 
 independence, it would, it seems to me, be good policy on the 
 part of Government to afford that assistance. The Govern- 
 ment might also encourage in an indirect way, by the grant 
 of titles and honors, such of the Zemindars as take interest 
 in the welfare of their tenantry and prove useful auxi- 
 liaries to Government in its efiforts to introduce agricultural 
 knowledge and improvement in the country. This is now 
 done to some extent, but in a spasmodic, isolated manner. 
 What is required is more systematic and continuous action in 
 this direction. It might be made a rule that all the more 
 considerable Zemindars are to be invited to meet the head 
 of the Government and the representative of the Queen- 
 Empress on or about the New Year's day, when they would 
 be expected to give in an informal way an account of the 
 management of their estates. This will give them an oppor- 
 tunity of becoming personally acquainted with the head of the 
 Government and with other Zemindars, and may be trusted 
 to engender in them a spirit of emulation in works of public 
 usefulness. The head of the Government will also have an 
 opportunity of showing his appreciation of the more public 
 spirited Zemindars by calling them to his council and treat- 
 ing them as the trusted advisers of Government ; while those 
 who neglected their duties and responsibilities would receive 
 due warning that they would be incurring the displeasure of 
 Government if they persisted in this course of conduct. In 
 many cases, such warnings and indirect influence would prove 
 effectual ; and though it may not be possible to make any 
 marked and immediate impression on the older Zemindars, 
 the effect on the ambition for distinction in works of public 
 usefulness of the younger generation cannot be otherwise 
 than beneficial. 
 
 III. — Agbicultueal Indebtedness, its Causes and Remedies. 
 
 90. The next group of questions we have to consider relates 
 
 to the extent of the agricultural indebted- 
 
 inStedn/ss''^"^''^*'^''^^ ^^^^ prevalent in this presidency, its causes 
 
 ' and the measures which it is possible for 
 
 Government to take to mitigate the evil. 
 
 32
 
 260 
 
 Without a minute inquiry extending over all parts of the 
 country, it would not be possible to form an entirely trust- 
 worthy idea of the extent of agricultural indebtedness, as the 
 conditions of different tracts vary widely. The following 
 general account is based on inquiries made and information 
 furnished on the subject by the officers of the Registration 
 Department within the limited time allowed to them for the 
 purpose. 
 
 The aggregate value of the documents registered in the 
 registration offices of this presidency in 1891-92 amounted 
 to about 15'68 crores of rupees ; but it would, of course, be 
 a mistake to take the aggregate value of registered trans- 
 actions as a measure of agricultural indebtedness. Regis- 
 tered transactions are not all loans, but, on the contrary 
 include a large number of cases of cancellation of debts, 
 such as reconveyances of mortgaged property, releases and 
 discharges of debts, receipts, &c., besides gifts, sales, leases, 
 and partitions of immoveable property. Of the aggregate 
 amount shown above, 14*45 crores related to immoveable and 
 1*23 crores to moveable property and simple bonds. The 
 value of gifts of immoveable property amounted to 20 lakhs 
 of rupees ; of sales of immoveable property 4*29 crores, and of 
 mortgages of immoveable property 6 "67 crores. The annual 
 rents of leases registered aggregated 48 lakhs and the amount 
 of fine or premium paid therefor was 10 lakhs. Among docu- 
 ments not relating to immoveable property, the value of sales 
 was 3 lakhs and of simple bonds 60 lakhs. 
 
 The total extent of debts registered — mortgages and 
 bonds — therefore amounted to 7'27 crores of rupees. There 
 is no means of finding out how much of this amount relates 
 to debts renewed and how much to debts newly contracted. 
 A rough analysis of a large number of mortgage deeds in the 
 several districts shows that nearly 75 per cent, of the mort- 
 gages executed are for terms not exceeding three years, 
 that in nearly 50 per cent, of cases there is either no term 
 stipulated or the term is less than one year, and the average 
 term stipulated for all mortgages is about three and-half 
 years.^"^ Mortgages for short terms might, of course, 
 occasionally be permitted to run for the full period allowed 
 by the law of limitation, but the practice appears to be to 
 renew the mortgages as frequently as possible. 66,396 
 mortgage deeds and 12,720 bonds ^*^^ registered in the regis- 
 tration offices of nine districts were examined, and it was 
 
 iw For particulars vide statement printed as appendix VI.-C. (1). 
 "* Do. do. VI.-C. (2).
 
 251 
 
 found that in 27,845 cases the purposes for which debts were 
 contracted were not stated ; and that in 28,206 cases the docu- 
 ments were executed either in renewal of subsisting mortgages 
 or for obtaining loans to discharge other debts. In the re- 
 maining 23,065 cases, the purposes for which the debts were 
 contracted were as follow : — To discharge court decrees 568 ; 
 for purchasing lands and houses 3,873 ; for purposes of trade 
 836; for purchase of cattle and for cultivation expenses and 
 payment of Government assessment 2,973 ; for sinking wells 
 and defraying the expenses of garden cultivation 569 ; for 
 marriage expenses 3,502 ; for funeral expenses 155 ; for other 
 household expenses 5,194; for court expenses 298 ; and for 
 various other purposes 5,097. The above figures relate only 
 to a small number of transactions registered in a few districts, 
 but a similar analysis of the statistics for all the oflBces in the 
 presidency would entail an enormous amount of labour and 
 take up considerable time. 
 
 The aggregate amount of debt may, perhaps, be guessed 
 at four times the annual value of mortgages and bonds regis- 
 tered, viz., 29 crores of rupees for the whole presidency. 
 The unregistered debts are mostly temporary loans which 
 are either repaid in a few months or converted into debts 
 secured by registered documents. Of the above sum of 29 
 crores, a considerable portion is secured on house property in 
 towns. There is no means of estimating how much is so 
 secured, but there is no doubt that the amount is considerable. 
 In the Madras town, where the properties mortgaged are 
 mostly house properties, the total value of the mortgages 
 amounts to 26 lakhs of rupees a year. 
 
 We have also no information in regard to the total value 
 of landed property and the extent to which it is encumbered, 
 but there is no reason to think that, high as the figures relat- 
 ing to indebtedness look, they bear anything like the pro- 
 portion to the total value of landed property that obtains in 
 European ^°^ countries. 
 
 '<"' Mr. Jenkins, Assistant Commissioner, who reported on the state of agriculture in 
 France to the British Royal Commission on Agricultm-e in 1881, remarks as follows on 
 the indebtedness of the peasantry in France : 
 
 " A report on the agricultm-e of any portion of France without a mention of that 
 spoilt child of the doctrinaires, the ' peasant proprietor,' would appear to many persons 
 like the play of Hamlet without the impersonation of the Prince of Denmark. Therefore 
 I feel constrained to say a few words on the subject, although, as a matter of fact, I 
 have very little to add to what has already been reported by my colleague Mr. Suther- 
 land. I quite agree with everything that Mr. Sutherland had stated in his report, and 
 also with the views on the same subject expressed by my late friend Mr. Gibson Rich- 
 ardson in his \rell known work on the Corn and Cattle Producing Districts of France. 
 But it seems necessary to draw attention to one remarkable omission by Mr. Sutherland, 
 namely, the extent to which peasant properties in France are mortgaged. Mr. Rich- 
 ardson states that ' the mortgage debt is put at 480 millions sterling, which is one-sixth
 
 252 
 
 in this country, there being no artificial obstacles inter- 
 posed to the free transfer of properties, the extent to which 
 property is annually transferred by private sale, taken in 
 conjunction with the average term of mortgages, may, in some 
 measure, serve as an index to the extent of indebtedness of 
 the agricultural classes. In the year 1890-91, out of an extent 
 of ryot war holdings amounting to a little more than 21 million 
 acres, the extent returned as transferred by private sale was 
 a little over 366,000 acres or 1'7 per cent. The irrigated 
 land transferred was 87,000 acres out of 4'1 million acres or 
 2-1 per cent. ; and the unirrigated land 279,000 acres out of 
 17 million acres or 1*6 per cent. The assessment of lands 
 transferred under each class to the total assessment of lands 
 under occupation bore the following proportions ; irrigated 
 land, 2*2 per cent. ; unirrigated 17 ; both classes 2 per cent. 
 In his Manual of the Goimhatore District, Mr. Nicholson has 
 given interesting calculations as regards the extent of land 
 transferred, based on the registration statistics for the three 
 years ending 1882-83. Mr. Nicholson estimated the value of 
 land as follows : Irrigated lands, 90,000 acres at Rs. 255 per 
 acre, 2*25 crores; unirrigated lands, 1,800,000 acres at Ks. 12 
 per acre, 2*15 crores ; garden lands, 410,000 acres at Es. 46 per 
 acre, 1*9 crores ; total 6*3 crores. He observes, " The actual 
 
 of the estimated value of the land, borrowed at a high rate of interest, as much, includ- 
 ing costs, as 7 per cent, calling for a yearly payment, mostly from the smallest owners, 
 of 34 millions sterling.' The same writer states that small plots of land, when pur- 
 chased, ' do not pay 2^ per cent, to let, and they can be sold when conveniently placed 
 for division at a price which bears no proportion to the letting value.' Again, referring 
 to the rights of heirs to their share of each kind of property, he remarks ' the conse- 
 quence of this is a continual division and sub-division of plots of land, imtil at last no 
 cultivation is possible, except with a spade, and in some cases that must not be a full 
 sized one ; and a tree cannot be planted in an estate, because it is illegal to plant one 
 within two yards of youi- neighbour's boundary, and your neighbour on each side is 
 within that distance.' These quotations from Mr. Richardson bring into relief the three 
 vices of the French land system as it affects the peasant proprietor ; these are (1) an 
 excessive sub-division of the land which used to be called in France ' morcellement ' 
 until the progress of facts rendered the word too feeble to express the reality, and so of 
 late years, it has been replaced by the term ' pulverisation ' ; (2) the ' demon of property * 
 which is the cui-se of the French peasant, which causes him to beg, borrow, and almost 
 to steal, to starve himself and his family, and in fact to do anything in order to obtain 
 possession of a piece of land ; and (3) the recklessness with which the peasants borrow 
 money at even ruinous rates of interest to complete their purchases." 
 
 The following facts as regards agricultm-al indebtedness in European countries have 
 been taken from Mr. Mulhall's Dictionary of Statistics .- 
 
 United Kingdom. — Lord Eeay estimates the mortgages at 58 per cent, in England of 
 the value of real estate ; in Ireland, according to Commissioner Greene, they amount to 
 40 per cent., say 120 millions sterling. Germany. — In 1870, the mortgages in Prussia 
 reached 190, and in all Germany 273 millions sterling. Professor Meitzen, however, 
 considers that 41 per cent, of all real estate in the Empire is mortgaged. An official 
 return for 1883 shows that the houses of Berlin were mortgaged for 105 millions sterling, 
 being 67 per cent, of their assessed value. Russia. — Mortgages of land are known to 
 reach 148 millions sterling, but probably amount to much more. Belgium. — The regis- 
 tration of mortgages was as follows : — 1860, 3"4 millions ; 1870, 4-4 millipns ; and 1886, 
 8'2 millions sterling. S})ain. — Mortgages are estimated to amount to 172 millions 
 sterling ; annual average of new mortgagee, 85 millions. Egypt. — New mortgages 
 .^jiverage 13 millions per anunm.
 
 253 
 
 sales for the three years ending 1882-83 averaged about 12|- 
 lakhs per annum, or less than one-fourth of the transactions, 
 and about one-fiftieth of the capital value. In 1882-83 the 
 total of land transactions was 24,765, of which mortgages 
 were 11,400 or 46'2 per cent., and sales 10,610 or 43 per cent. 
 The ratio of all transactions to the kinds of land has not been 
 ascertained, but in 1880-83 sales averaged as follows : wet 
 lands 1,567 acres or -V of the total occupied area ; dry lands 
 35,726 acres or about -V of the total occupied dry area exclud- 
 ing gardens; and gardens 3,462 acres or about -j-f-g- of the 
 nominal garden area of 408,326 acres and yV of the area 
 (251,275 acres) actually irrigated. Of the prices realized, 
 nearly ^t ^^^ credited to the small area of wet land ; if to 
 dry land ; and ^\- to gardens. Acre for acre, wet lands as 
 sold were worth Rs. 255 or 13^ times as much as dry land 
 and 5^ times as much as gardens, while gardens were worth 
 Rs. 46 or 2^ times as much as dry land, which averaged Rs. 19 
 per acre. The low garden rate is due to the fact that much 
 nominal garden in a given field is only dry land, a 6-acre field 
 having probably only 3 to 4 acres of actual garden, the total 
 area actually irrigated being only 251,275 acres out of a field 
 area of 408,326 acres; hence the actually irrigated area is 
 probably worth about Rs. 60 per acre. The average value of 
 the dry lands (Rs. 19) must not be taken as a gauge of the 
 value of poor lands, such as VII 4, 5 and VIII 3, 4, 5 ; a 
 vast area has little or no sale valae, being so unproductive; 
 an examination of the tables from 1878 to 1883 shows that 
 sales are much larger where the generality of dry lands are 
 most valuable ; in Pollachi, where the soil is generally rich and 
 the south-west monsoon abundant, and in Udamalpet, with its 
 high-priced black cotton lands, the sales averaged in five years 
 almost yV^hs of the total district sales, though the occupied 
 area of these two taluks, including poliputs, is two-twelfths 
 of the district occupied area. The number of professional 
 money-lenders in these taluks possibly accounts for the large 
 sales and the value of the lands for the money-lenders. 
 Since, therefore, the average price of Rs. 19 has been struck 
 upon the sale of an unduly large proportion of the valuable 
 lands of the district, a lower rate (Rs. 12) has been taken in 
 roughly estimating the capital value of the total occupied dry 
 lands. The sales of garden lands in the Palladam taluk, 
 including Avandshi, were very heavy, totalling 8,563 acres 
 out of 16,448 acres sold from 1878 to 1883 or above one-half, 
 whereas the garden area of the taluk is above two-elevenths 
 of the district garden area, and the dry sales were only about 
 one-eleventh of the total dry sales." Information is not
 
 ^54 
 
 available in a readily accessible form to make a similar ana- 
 lysis of statistics for later years. The agricultural returns 
 published by the Board of Eevenue show that in 1890-91, 
 the area transferred by private sale was 58,000 acres in the 
 Coimbatore district or 2*4 per cent, of the total area of ryot- 
 war holdings, which pretty closely accords with the estimate 
 arrived at by Mr. Nicholson. There is no reason to think 
 that the percentage is higher in other districts. 
 
 It is also a noteworthy fact that land transactions take 
 place mostly between the ryots themselves, and that money- 
 lenders in not less than 80 per cent, of the cases belong 
 to the agricultural classes. Information furnished by the 
 officers of the Registration Department clearly establishes 
 this point.^^" This fact explains the reason why the evils of 
 agricultural indebtedness do not appear to have developed 
 in this presidency to the extent they appear to have in the 
 Bombay-Deccan. There the money-lenders are stated to be 
 foreigners, different in religion from their clients; entirely 
 out of sympathy with them ; and accustomed to retire with 
 their profits after a sufficiently long course of business to their 
 homes in Eajputana. The money-lenders in this presidency 
 may roughly be divided into four classes, viz., 1st, the richer 
 ryots ; 2ndly, the Komaties or Banya traders in the Telugu 
 districts ; Srdly, the Lingayet traders in the tracts of country 
 bordering on the Mysore territory ; and, 4thly, the Muham- 
 madan Lubbay traders on the East Coast and Moplahs in North 
 Malabar, and the Nattukottai Chetties in the southern dis- 
 tricts. As already stated, taking the presidency as a whole, 
 not less than 80 per cent, of the money-lenders belong to the 
 agricultural classes, who are of all castes. The Komaties or 
 Banyas form a small class, and as they have been for gene- 
 rations permanently established in their several places of 
 business, their terms are generally moderate, and harmonious 
 relations prevail between them and their clients. In the 
 Cuddapah and Nellore districts, where this class is numerous, 
 the rates of interest are generally lower than in other parts 
 of the presidency. The Moplahs are usurious money-lenders, 
 and as they are keen men of business placed in the midst of 
 an indolent population, alien to them in religion, they are 
 more than usually hard in their dealings. The Moplahs do 
 not, however, except in North Malabar, practise money-lend- 
 ing to any great extent and they are more often borrowers. 
 The Nattukottai Chetties are the Marwadies of this presi- 
 dency ; but they are established only in a few tracking centres 
 
 "" For partictilarBiuide statement printed as appendix VI.-G. (2).
 
 and lend money to the poorer classes to a small extent, 
 though the terms exacted by them are harder than those 
 exacted by other classes of money-lenders. They do a large 
 business in the way of lending large sums to zemindars and 
 other big landholders and make an enormous profit. 
 
 The terms and conditions of money loans differ in differ- 
 ent districts. 12 per cent, is the usual rate of interest for 
 loans amounting to between Rs. 100 and Rs. 500; for loans 
 between Rs. 500 and Rs. 1,000 it varies from 12 to 9 per 
 cent., and for loans above Rs. 1,000 between 9 and 6 per 
 cent., the rate of interest diminishing as the amount of the 
 loan increases. On the other hand, for loans below Rs. 100 
 the rate of interest ranges between 12 and 18 per cent., 
 the rate increasing as the amount of the loan diminishes. 
 These are the most usual rates, ^" but in exceptional cases 
 and for large amounts the rate of interest is occasionally less 
 than 6 per cent. In the case of small sums when the security 
 offered is insufficient and the risk in recovering the loan 
 great, the rate of interest is even higher than 18 per cent. 
 Sometimes it is stipulated that when there is failure in 
 payment of the loan together with the usual interest at the 
 appointed time, and the solvency of the debtor becomes 
 doubtful, a higher rate of interest shall be paid from the date 
 of default. This condition is not, however, generally enforced 
 except when the money has to be recovered by resort to 
 the courts. Loans on mortgages of value of Rs. 100 and 
 upwarfls amounted in 1891-92 to 5*85 crores of rupees and 
 loans on mortgages of value less than Rs. 100 to 82 lakhs or 
 about one-seventh of the former, the average amount "'^ of a 
 loan in the first case being Rs. 313, and in the second, Rs. 
 44. Loans on simple bonds registered averaged in value Rs. 
 200. Taking all transactions together, the average rate of 
 interest may, therefore, roughly speaking, be estimated at 12 
 per cent. 
 
 The transactions between money-lenders and ryots, espe- 
 cially in the districts subject to drought, are usually of the 
 following description. The poorer ryots open an account 
 with a money-lender who is generally a well-to-do ryot or 
 Komati trader, and obtain from him small sums of money or 
 food grain or seed grain during the cultivation season, June or 
 July, on condition that the advance is to be repaid in grain 
 after the next harvest with an addition which varies from 
 12^ to 50 per cent., the most usual rate being 25 per cent. 
 « — — — — 
 
 "' For particulars vide statement printed as appendix VI. -C. (2). 
 "» Do. do. VI.-C. (3).
 
 256 
 
 As long as the ryots repay regularly what they have bor- 
 rowed, they are allowed further advances on the same condi- 
 tions. If there is failure in repayment, a bond or mortgage 
 deed is taken. In the case of hypothecation of property the 
 amount of the loan is about half, and in the case of mortsfasre 
 with possession about three-fourths, of the value of property 
 offered as security. Money on mortgages of land with pos- 
 session is rarely lent except by persons belonging to the 
 agricultural classes. Money is sometimes lent to ryots by 
 persons who have no lands of their own with a view to secure 
 food grains for their household consumption, the stipulation 
 being that the borrower shall pay grain in lieu of interest at 
 the harvest at a rate which is below the then market rate. 
 In some cases grain merchants and dealers in commercial 
 produce make advances to ryots stipulating for delivery of 
 produce at certain fixed rates or at the rate prevailing at the 
 time of repayment mi7ius a deduction in the price on account 
 of interest or at the lowest rate at which grain was sold 
 soon after harvest. Sometimes the ryots deal directly with 
 merchants, but in some cases, especially in the dry parts of 
 the country, brokers are employed. In several cases, ad- 
 vances are made by landholders to agricultural labourers on 
 the condition that they are not to pay interest so long as they 
 work under them for the customary wages, and that, on 
 default, the amount advanced should be repaid with interest 
 at 18 or 24 per cent. Money is also borrowed by the indus- 
 trial classes, viz., weavers, artizans, &c., under what is called 
 "Kandulabha" system. An artizan, for instance, borrows 
 Rs. 300 to make his wares and sell them daily. The interest 
 for the whole amount is taken at Rs. 60 per annum and 
 added to the principal and the whole amount is made repay- 
 able in daily instalments throughout one year at the rate of 
 one rupee a day by the sale of his goods. 
 
 It would, however, be a great mistake to suppose that the 
 rates of interest above referred to, high as they appear, are 
 necessarily usurious. The gross profits derived from the 
 use of capital consist, as is well known, of three parts, viz., 
 
 (1) the remuneration for the labour of managing the capital, 
 
 (2) the insurance against the risks involved in the particular 
 use of it; aTid (3) the interest proper. Taking the case of a 
 ryot borrowing a quantity of grain on condition of repaying 
 at the end of six months the whole of it plus an additional 
 25 per cent., it might seem as if the interest paid were 50 
 per cent, per annum, a most exorbitant rate;, but this is 
 really not so. The price of the grain during the cultivation 
 season is usually 15 or 20 per cent, higher than the price
 
 257 
 
 at the time of the harvest, and occasionally even as much as 
 25 per cent. This difference in price is due no doubt partly 
 to the inability of the majority of the ryots to wait for a 
 price; but even if they waited they would not be able to 
 profit by the whole difference, for that difference consists, to 
 a considerable extent, of the wastage and dryage of grain 
 during the intervening period and the charges for storing. 
 The gains of the money or grain lenders are, taking one year 
 with another, and allowing for losses, not more than what 
 keen men of business can reasonably expect for the time they 
 give to the business and the risks they undergo. And in the 
 case of the poorest ryots, the money lenders are almost a 
 necessity, seeing to what extent, under the conditions of 
 climate, the outturn of harvests in this country differs from 
 year to year. The late Rajah Sir T. Madhava Rao has ex- 
 plained the useful service this class renders to the ryots with 
 reference to the state of things in the Baroda State. He 
 states " The ryot can never, as a rule, altogether dispense 
 with the services of the sowkar ; for the seasons are not so 
 regular, nor are the means of irrigation so extensive as to 
 ensure equality or constancy of production. Again, the land 
 tax is, in most cases, fixed, and absorbs a considerable pro- 
 portion of the produce ; and again, prices of produce fluctuate, 
 changing the incidence of tax fi-om year to year. In other 
 words, while the outturn of the land is necessarily varying, 
 the ryot has to pay a fixed and considerable tax which must 
 come from the land. In other words, again, the exchequer 
 has to draw a constant and continuous stream out of a fitful 
 supply. The sowkar by his interposition meets the mechanical 
 necessity of the problem. He is the receiver of the fitful 
 supply, and makes the ryot pay the sirkar equably. He 
 often performs another useful function, namely, he enables 
 the ryot also to draw from that fitful supply an equable sub- 
 sistence for himself and his family. It is thus to him that 
 the sirkar and the ryot are indebted for equalizing the annual 
 receipts from a fluctuating source. He, therefore, fulfils 
 beneficial duties and deserves to be conserved as an almost 
 indispensable part of the rural organization. At the same 
 time we are bound to see that he does •not over-ride the 
 interests of the ryot. Let the Civil Courts enable the sowkar 
 to recover his just claims from the ryots. But the Courts 
 should not permit the sowkars to press the ryots to the point 
 of crushing." The speculators in commercial produce per- 
 form equalJy useful functions. By watching the state of the 
 market for different kinds of produce in different parts of the 
 world, and entering into contracts to take the produce which 
 
 33
 
 258 
 
 is likely to be in demand, they enable the ryots to realize a 
 larger value for their produce than they would have done if 
 they had been left to their own devices. In the case of the 
 Kandu labha system, instanced above, the risks undergone 
 by the lender are probably not very great, and the greater 
 portion of the high interest charged represents the remu- 
 neration due for the trouble of collecting small sums at short 
 intervals from a number of persons and lending them out 
 again/^^ The true interest is what is obtained for loans of 
 fairly large amounts on adequate security for considerable 
 periods of time. Transactions of a genuine usurious type 
 appear, however, to be common in Malabar. Traders some- 
 times combine money-lending with trade operations whenever 
 they have money lying idle on their hands, but in such cases 
 the terms allowed are very short and repayment is punctually 
 and sometimes harshly enforced. The Moplahs, it is stated, 
 expect to make as much profit by money-lending as they 
 would do if the amount were employed in trade. From 
 inquiries I have made it appears that, taking one year with 
 another, the profits of trade amount to about 25 per cent., of 
 which about 15 per cent, goes to defray the charges including 
 the trader's subsistence and 10 per cent, forms interest on the 
 capital invested. An mteresting account of the methods of 
 dealing practised by the firms of Nattukottai Chetties settled 
 at Kariir is printed as appendix YI.-C. (4). 
 
 91. As regards the question whether agricultural in- 
 Has agricultural in- clebtcduess as mcasurod in money value 
 debtedness increased in has increased in rcccut years, the answer 
 recent years. must Certainly be in the affirmative ; first, 
 
 because of the great rise which has taken place in the 
 value of property of all descriptions and of the facilities 
 available, owing to fixed laws and security of property, for 
 raising money required for various purposes ; and, secondly, 
 because of the abundance of money and the growth of a 
 money economy. If, on the other hand, the question be 
 asked, whether the agricultural classes generally are more 
 in the hands of sowkars or professional money-lenders than 
 before, the answer must as decidedly be in the negative. 
 
 ^- — f — ■ — 
 
 "' Professor Marshall points out, "A pawnbroker's business involves next to no 
 risk ; but his loans are generally made at the rate of 25 per cent, per annum or 
 more, the greater part of which is really earnings of management of a troublesome 
 business. Or to take a more extreme case : there are men in London and Paris, and 
 probably elsewhere, who make a living by lending to costermongers. The money is 
 often lent at the beginning of the day for the pui-chase of fruit and returned at the end 
 of the day at a profit of 10 per cent. ; there is little risk in the trade ; the money so 
 lent is seldom lost. Now a fartliing invested at 10 per cent, a day woWd amount to 
 a billion of pounds at the end of a year. But no man can become rich by lending to 
 costermongers, because no one can lend much in this way."
 
 259 
 
 Tlie evidence of Mr. Grant, Sir Thomas Munro, Messrs. 
 Mellor, Boiirdillon and Pelly, referred to in previous por- 
 tions of this Memorandum, will show the extent to which the 
 ryots in the Northern Circars and the Ceded Districts were 
 dependent on the sowkars in former days for their means 
 of subsistence. The extracts, printed as appendix VT.-C. 
 (5 and 6), from Mr. Warden's report and Buchanan's Journey 
 in Mysore, Canara and Malahar furnish particulars as regards 
 the state of things in Malabar. There can be no doubt that 
 agriculturists as a class have gradually been emancipating 
 themselves from the thraldom in which they had been held 
 by the money-lending classes formerly, and that the mono- 
 polyi^* and the tremendous power and influence exercised by 
 the latter classes have been breaking down. In the Godavari 
 and the Kistna districts the ryots, it is reported, " instead of 
 being in the hands of sowkars, are becoming sowkars them- 
 selves," or in other words, the transactions are getting more 
 and more to be between the agriculturists themselves, the 
 richer ryots lending to the poorer. In Bellary, it is stated 
 that, " whereas about 40 or 50 years ago there used to be 
 only a few important ryots and sowkars scattered here and 
 there in villages and taluks, each having at times a number 
 of families depending on him as so many parasites, the 
 present aspect is that wealth and importance are more 
 generally distributed." The Acting Registrar of the South 
 Arcot district, referring to the condition of things in that 
 district as well as Chingleput, states : "I have experience 
 of two or three districts, and I am able to state that the 
 improvement is marked and is perceptible to all unprejudiced 
 observers. Nearly one-half of the huts that existed 25 years 
 ago have disappeared, and tiled houses have taken their 
 places. Houses which were tiled then have changed their 
 dimensions and appearance now. So in clothing and other 
 comforts. Agriculturists have in their turn become money- 
 lenders and have learnt to dispense with the aid of the 
 professional money-lenders, to a very great extent. The 
 improvement in material prosperity can be easily gauged by 
 
 ''* See para. 62 ante. Compare the following remarks of Sir Alfred LyaU : " There 
 is much vague talk aboat the English rule in India being the paradise of money-lenders ; 
 but the great bankers of Upper India with one accord look back regretfully from 
 these levelling times of railway and telegraph to the golden days of immense profits 
 upon daring ventures, when swift runners brought early secret news of a decisive 
 battle, or a great military leader offered any terms for a loan which would pay his 
 mutinous troops. In those times a man whose bills were duly cashed in every camp 
 and court of the Northern Provinces had often to remit specie at all hazards, and the 
 best swords of Rajpntana were at the service of the longest purse. A tremendous in- 
 surance policy«was paid to some petty chief or ca-ptain of banditti, who undertook, by 
 hook or hy crook, to cut his way across the country and deposit the treasure at its 
 apjiointed place, and who almost always discharged his contract with great daring and 
 iidelitv."
 
 260 
 
 the fall in the rate of interest which ^^^ was then 12 per cent. 
 
 at least (then called dharma vaddi, i.e.y equitable interest) and 
 is now nearly 6 per cent. Time has come when ryots are 
 able to take advantage of any help that may be rendered to 
 them to organize a system of mutual credit. By getting a 
 small loan for a bullock or two, by industry and economy, 
 they become in time proprietors of a plough and a pair of 
 cattle and are able to maintain themselves independently. 
 As farmers they are able to repay their loans, which as ser- 
 vants they were not. By dint of exertion and thrift they are 
 even able to purchase a sinall piece of land and attain the 
 status of proprietors. Rich landholders, on the other hand, 
 have been losing ground. The sons by partition get only a 
 fraction of their patrimony, while their family and expendi- 
 ture are in many cases equal to or greater than those of 
 their parents. They involve themselves in debt and have 
 ultimately to part with their lands. They become poor, and 
 by hard necessity understand their position and try to lift 
 themselves with those who were originally poor. The lands 
 are passing from them to vakils and Government officials " 
 (appendix VI. -0. (7)). The District Registrar of Tinnevelly 
 remarks " the higher classes, who were sole landholders before, 
 have become impoverished and have given up their land little 
 by little, whereas the poor labouring classes have acquired 
 land by dint of their economical savings. As agricultural 
 profession is found to be more safe and secure by the lower 
 classes, they lay out their earnings on landed property." 
 The Honorable P. Chentsal Rao in discussing the question 
 which forms the subject of this Memorandum observes, 
 " You may ask, why is it that, in spite of all the improve- 
 
 "' The inscriptions in the famous temple at Tanjore show that loans made to indi- 
 viduals or village assemblies in the eleventh and twelfth centuries out of temple funds 
 paid interest at the rate of 12^ per cent, per annum. Even now, the usual rate of interest 
 cannot be said to be so low as 6 per cent. It must, however, be remembered that most 
 of the transactions in former days having been carried on by barter, the demand for 
 money must have been much less than at the pi-esent day. Leaving out of account 
 usurious transactions, the ordinary transactions were between persons belonging to the 
 same community, thoroughly known to each other, generally kinsmen or co-religionists. 
 Money was lent not for the sake of profit, but with a view to relieve the necessity of 
 the boi-rowers. The interest taken was small, and no security was demanded, the only 
 witnesses to the transaction being the "sun and moon"; such transactions were 
 necessarily few. When lending becomes general, and the dealings are between 
 strangers, greater security is demanded and the rates of interest are determined with 
 reference to mercantile considerations ; and the rates thus established are applied also 
 to loans to persons who as kinsmen or friends of the lenders would formerly have been 
 granted easy terms. This change is due to the extension of the system of credit and 
 not to any loss of " confidence " as between borrowers and lenders as is sometimes sup- 
 posed. Another circumstance which has possibly tended to keep up the rate of interest 
 is the diminishing purchasing power of money. If the princixjal sum be not expected 
 to be worth as much when returned as when lent, the difference must be made good 
 by the rise in the interest. It may be doubted whether the lender is Consciously in- 
 fluenced by this consideration, but these matters have a tendency to adjust themselves 
 automatically.
 
 261 
 
 ments I have mentioned, there is such a cry as that we are 
 becoming poor. I fancy that this is due to three causes. 
 One is, it is a fact that we now fail to see those ' big men ' in 
 the country who once existed with enormous wealth and 
 great influence over the people. My grandfather once told 
 me that when he was a Tahsildar, the Collector having on 
 one occasion called upon him to expedite the revenue collec- 
 tions and intimated to him that if he did not remit at least 
 Rs. 50,000 within a week, he would be dismissed, a single 
 ryot in his taluk paid all the money in advance and received 
 it afterwards from the ryots in his taluk, almost all of whom 
 were dependent on him. Such men of wealth and influence 
 over the ryots do not now exist. This change has taken place, 
 because the lower classes of ryots have slightly recovered 
 from their extreme poverty and dependence upon the bigger 
 men. I myself knew that in some villages of the taluks of 
 which I was the Tahsildar, there were one or two big men 
 who paid all the taxes of the ryots of those villages and took 
 possession of all the produce raised by them, lending them 
 again small quantities of produce for their subsistence. Now 
 such men have diminished in number, because the ryots are 
 able to pay their own taxes and keep to themselves the little 
 they could save, instead of sending it to the pockets of the 
 rich men. Thus, wealth is now more spread than it was, 
 and this change is mistaken by some of us to be a sign of 
 poverty. I do not mean to say that the disappearance of 
 large capitalists is not a misfortune in itself, for I know that 
 Rs. 1,000 in the hands of a single individual may often do 
 more ^^^ good than Rs. 2,000 distributed among 1,000 persons ; 
 but all that I mean to say is that the aggregate wealth of the 
 country has by no means diminished. Another cause of the 
 feeling that we are getting poorer is that the intelligence 
 of the people having improved, the educated men compare 
 themselves with the more wealthy and civihzed nations, 
 whose habits and tastes they have imbibed, and feel their 
 poverty more keenly than their ancestors did. The third 
 and most important cause is, that although we are on the 
 whole undoubtedly better off than we were fifty years ago, 
 still the masses are extremely poor and most of them are 
 
 "^ It is for the reasons stated here by Mr. Chentsal Eao that his proposal to 
 legislate in view to arresting the too rapid decay of the landed aristocracy of the 
 country has commanded general approval. As a return for protection thus afforded, 
 greater public services tlian hitherto rendered will be expected from the great landed 
 proprietors, and, if need be, will have to be enforced. Another important means of 
 counteracting the evils of diffusion of capital amongst innumerable persons, instead of 
 its being concenteated in the hands of a few individuals in a form readily available for 
 industrial enterprises, is the provision of facilities ioy the establishment of baoks and 
 joint stock companies all over the country.
 
 262 
 
 half- starving — a condition which is enough to induce an 
 ordinary observer to think that we could not have been 
 worse before." The growth of a money economy and the 
 new wants created by it have not only deprived the classes, 
 which had hitherto benefited at the expense of the working 
 classes, of much profit which they had formerly enjoyed, but 
 also by placing temptations in their way to adopt a more 
 expensive style of living than they had been accustomed to, 
 have diminished a large portion of their accumulated wealth 
 which has been distributed among the earning classes. The 
 condition of the working classes has improved to some extent 
 by means having been placed within their reach of engaging 
 in occupations for which they may be qualified, while the 
 creation of new wants and the easy means available of satis- 
 fying them have to some extent improved the standard of 
 living. So far as land is concerned, the tendency has been 
 to' transfer it to actual cultivators or to persons who, in addi- 
 tion to capital, have sufficient education and intelligence to 
 adopt improved methods of cultivation when they are found 
 to be profitable. The changes which have taken place, so 
 far as this presidency is concerned, have, therefore, on the 
 whole, been beneficial, though possibly it may be that the 
 diminution of dependence of the lower on the higher classes 
 has to some extent had the natural result of diminishing 
 the protection aff'orded by the latter to the former. 
 
 92. Various measures were suggested for remedying the 
 
 evils of agricultural indebtedness, some 
 
 Some remedies sug- gf them of a drastic character, in con- 
 gested for mitigating; .. '.i ,i • • - • i-i j. j i 
 
 the evils of agricultural ucction With the mquirics mstituted by 
 indebtedness retrogres- the Famine Commissiou of 1878. The 
 
 sive and inapplicable to , , ^n, . ^ r^ • ^ i c .li 
 
 this presidency. l^tc hir J amcs Oaird, a member or the 
 
 commission, recommended a reversion to 
 the old system of dividing the produce of land in defined 
 proportions between the ryot and the Government, which he 
 considered to be sound in principle, suited to the circum- 
 stances of small cultivators, and calculated to make them 
 independent of the money-lenders, by taking from them a 
 large quantity of produce by way of tax in years of abund- 
 ance and a small quantity in years of scanty produce. The 
 proposal was rejected by the Famine Commission as alto- 
 gether impracticable. The " Fifth Report " of the Parlia- 
 mentary Committee on Indian Affairs, 1812, shows that even 
 under the old native governments, the principle of collecting 
 the Government tax in kind by taking a share of the produce 
 was adopted only in the case of lands irrigated by river 
 channels and tanks. The lands cultivated with unirrigated
 
 263 
 
 crops, of which there are a great many varieties, as well aS 
 those on which garden produce was raised, always paid 
 money assessments. It is obvious that the application of^a 
 uniform rate in fixing the Government share of the gross 
 produce must unduly benefit lands of the better qualities, 
 while rendering the incidence of the tax very heavy on the 
 poorer soils ; and if the rates are to be graduated with refer- 
 ence to the qualities of the soil, situation of the lands and 
 the nature of the crops raised, the number of rates must be 
 so large as to entirely preclude the supervision necessary for 
 securing the due share of Government. In the case of irri- 
 gated lands there was in former days a single rate for a whole 
 village, and the ryots who held the lands jointly were left to 
 adjust the differences in the produce of lands of different 
 qualities in the same village by private arrangement. This 
 was generally effected by giving to each ryot a share in the 
 lands of every quality situated in every part of the village 
 and by periodically redistributing the parcels so as to 
 remedy any inequalities which may have arisen owing to 
 changes in the conditions of the several parcels brought 
 about by natural causes. The waste of labour involved in 
 cultivating innumerable small plots of land situated in 
 different parts of a village can be readily conceived. There 
 can, moreover, be no incentive to make any improvements to 
 land or to adopt superior methods of cultivation or raise 
 valuable commercial crops under the sharing system, because 
 all such improvements would be taxed by Government. The 
 difficulties in securing the Government share of the produce 
 and of disposing of it for a money price would also be enor- 
 mous. To ensure even a fair amount of success in the appli- 
 cation of the system, it would require minute and constant 
 supervision on the part of the superior officers of Government 
 and the cost of the establishments, if the officers employed 
 were to be paid bond fide salaries and not be expected to 
 make a living by colluding with the ryots to cheat the State 
 and divide the gains with them, must be prohibitive. The 
 graphic description given by Mr. A. Seshiah Sastriar (appen- 
 dix VI. -B. (5)) of the evils of the system when it prevailed 
 in the small State of Pudukota and of the demoralization it 
 caused has already been referred to. When the Government 
 directly collects its share of the produce, it practically com- 
 bines in itself the three-fold functions of a Government, a 
 landlord and a sowkar or trader ; an army of watchers, inspec- 
 tors, estimators and measurers of produce will have to be let 
 loose on the 'people, interfering with the ryots at every stage 
 of production and the harvesting and storage of the produce.
 
 264 
 
 I'he result must be oppression and peculation on the one 
 hand, and fraud, evasion and concealment on the other. If 
 the Government share is farmed out to renters, who must be 
 armed with the necessary powers to collect the tax, such an 
 arrangement must equally be disastrous to the ryot's rights 
 which have been slowly built up by half a century of good 
 government and fairly just administration of the laws ; and 
 the oppressions and exactions of the renters, must be far 
 more difficult to be borne than the exactions of sowkars 
 under the present system. In zemindaries where the sharing 
 system prevails, the ryots are anxious for the introduction of 
 a system of money assessments. There is, however, one fact 
 to be remembered in the conversion of assessments in kind 
 into assessments in money, viz., that under the former system 
 the Government is practically both a landlord and a sowkar, 
 and that it has in seasons of scanty produce not only to 
 remit the assessment, but also to advance to the ryot the 
 necessaries of life and the means of carrying on cultivation. 
 When, however, money assessments are introduced and the 
 Government divests itself of the functions of a landlord, 
 the ryot being expected to shift for himself in all seasons 
 except those of dire famine, the assessments must represent 
 a tax pure and simple, and care should be taken to see that 
 it does not include any portion of the landlord's and mer- 
 chant's profits realized under the old system. 
 
 Another proposal of Sir James Caird was that the ryot 
 should be deprived of the right of transferring his land by 
 sale or of raising money on it by mortgaging it. The Famine 
 •Commission did not support this proposal either. So far as 
 this presidency is concerned, it will have been seen that land 
 is not being transferred from the agricultural to the non- 
 agricultural classes to any injurious extent. Land is sought 
 after as an investment to some extent by the labouring classes, 
 and to throw any impediments in the way of transfer will 
 arrest the beneficial process of land passing into the hands of 
 those who can make the best use of it. Moreover, in all 
 countries where peasant properties are the rule, France for 
 instance, freedom of transfer of land has been found to have 
 the effect of counteracting in some degree the minute sub- 
 division of holdings which results from the law of equal 
 division of patrimony among the children. 
 
 The Famine Commission suggested that restrictions 
 should be placed on the power of a ryot to sub-let his lands. 
 This proposal was negatived by the Madras Government, as 
 no evil consequences, such as those aj)prehended by the 
 Famine Commission, have been experienced in this presidency.
 
 20.5 
 
 In the vast majority of cases the lands owned by the ryots 
 are farmed by them, either by themselves working on the 
 fields or by employing farm servants monthly or yearly or on 
 the sharing system known in the southern districts as the 
 porakudi system. In the last case it is often erroneously 
 supposed that the land is leased out and that the porakudi 
 is a tenant/^^ but the fact is that the land is farmed on the 
 co-operative principle, the labourer being remunerated by a 
 share of the crop instead of being paid daily wages, on 
 condition of his furnishing the stock, the labour and the seed 
 required, and the owner bearing the expenses of farm repairs, 
 of the clearance of irrigation channels and of manures. The 
 arrangement is highly advantageous to the labourer and is 
 sought after by such of the labourers as have the means to 
 purchase a pair of cattle and engage in cultivation. It is in 
 fact the system of metayage prevalent in European coun- 
 tries in regard to which Professor Marshall remarks that it 
 " makes a man who has next to no capital of his own to 
 obtain the use of it at a lower charge than he could in any 
 other way and to have more freedom and responsibility than 
 he could as a hired labourer ; and thus, the plan has many of 
 the advantages of the three modern systems of co-operation, 
 profit-sharing and payment of piece-work." The leasing out 
 of land for fixed rent in kind or money marks the next 
 higher stage in the status of a labourer. He attains to a 
 
 ^'' There is much misconception as to the part taken by the Mirassidars of Tanjore 
 and corresponding classes in the other districts in the farming of lands. The true state 
 of the case was pointed out by Mr. John Wallace, the Collector of Tanjore, in 1805. He 
 said : " Although the Mirassidars, in employing either class of porakudis, renounce all. 
 interference in the business of tillage, it is not to be considered that they neglect the 
 management of their lands. On the contrary, they superintend and direct the labours 
 of the porakudis in all the particulars of rural economy. Their engagements with 
 porakudis are not for a fixed quantity of grain or a determinate sum of money. The 
 porakudis have an active interest in cultivating the lands of the mirassidars in the most 
 beneficial manner possible, as a fixed proportion of the produce is the only remuneration 
 they have to look to for their labour. This proportion varies in different villages. It is 
 not anywhere less than 22 per cent, of the gross produce nor more than 30." The 
 remuneration of the labourer is, of course, determined by the standard of living of his 
 class, which, as pointed out in a previous portion of this Memorandum, has to some ex- 
 tent risen and certainly not deteriorated. It must also be remembered that, 1st, where 
 the land-tax is so high as to leave to the landholder nothing more than the barest means 
 of subsistence, the State has to perform the functions of a landlord by supplying him 
 with the means of cultivation and often of subsistence ; 2ndly, where the tax is so 
 moderate as to leave a suflicient margin to meet both the expenses of cultivation and 
 of subsistence, the State is relieved of the functions of a landlord, but the ryot has to 
 resort to the money-lender on account of the vicissitudes of the seasons to obtain the 
 wherewithal to live and carry on cultivation in years of scanty produce, the advances 
 made being repaid from the surplus of years of abundant produce ; and, 3rdly, where the 
 tax is still more moderate so as to leave a margin sufficient to meet not only the cost of 
 cultivation and subsistence, but also to enable him to lay by savings which would help 
 him to tide over bad seasons, resort to a money-lender can be dispensed with. At this 
 stage, however., the landholder in many places no longer consents to be a mere peasant 
 actually working in the fields, but he becomes a farmer, with skill, intelligence and 
 capital suflScient to adopt improved methods of cultivation provided it is found to pay, 
 
 34
 
 266 
 
 position somewhat analogous to that of an English farmer, 
 and during the term of the lease is enabled to enjoy the full 
 benefit of the extra labour bestowed by him on the land 
 without having to share it with the land-owner. There is no 
 object in compelling the owner by prohibition of sub-letting 
 to cultivate the lands by means of hired labourers under his 
 own superintendence or that of paid agents, and the measure 
 is likely to have mischievous effects in the case of owners 
 who, because they are minors or women or for other reasons, 
 are unable to look after the lands themselves. It will also 
 injuriously affect labourers who, though they may not have 
 the means to purchase lands themselves, have sufficient means 
 to take lands on lease, and by farming them properly make a 
 profit and gradually raise themselves in the social scale as 
 has happened in several districts. The value of land is so 
 great that it hardly pays 5 per cent, as an investment, and it 
 is clearly more advantageous to a farmer or labourer with 
 small means to take as much land as he can farm on lease, 
 pay 5 per cent, of the value of land to the owner as rent, and 
 make a profit by cultivation, than to hii'e himself out as a 
 day labourer or buy with his slender means a small parcel of 
 land, the cultivation of which will not give him sufficient 
 occupation. 
 
 Other remedies suggested for mitigating the evils of agri- 
 cultural indebtedness are the placing of restrictions on the 
 sale of immoveable property for simple debts and the grant 
 of power to courts to disallow usurious contracts where 
 the creditor is shown to have taken undue advantage of the 
 simplicity and ignorance of the debtor. Sections 320-327 
 of the Civil Procedure Code contain provisions for transfer- 
 ring to the Collector for execution decrees directing that 
 immoveable property shall be sold for debts in tracts of 
 country where the Government deems it expedient that the 
 usual judicial processes should not be allowed full operation ; 
 but in this presidency it has not been found necessary to take 
 action under these provisions. In 1889-90, the area of perma- 
 nently settled estates transferred by court decrees was 36,571 
 acres or 1 in 800 ; of ryotwar holdings 7,409 acres or 1 in 
 3,000 ; and of inam holdings 1,334 acres or 1 in 3,000. The 
 enactment of a usury law, however suitable to a condition of 
 society where almost all transactions are carried on by barter 
 and money payment is the exception, is entirely inapplicable 
 to present conditions in which the old regime of barter has 
 been superseded by one of cash payments and an active 
 internal and external trade has been developed by the exten- 
 sion of communications. As regards manifestly extortionate
 
 267 
 
 and inequitable contracts, the High Court of Allahabad has 
 held that Courts of Justice in India as courts of equity and 
 good conscience have, notwithstanding the repeal of usury 
 laws, power to set aside contracts, where the extortionate 
 character of the terms imposed on the debtor, taken in con- 
 junction with his helplessness and ignorance, lead to the 
 presumption that undue influence, amounting to fraud, has 
 been exercised upon him. This seems all the remedy that 
 the nature of the case requires in this presidency.^^® 
 
 93. All the plans mentioned above had special reference 
 to the condition of the ryots in the 
 teJaS^tTog'ssT/e'"" Bombay-Deccau and were based on the 
 supposition that certainty of tenure, fixity 
 of the Government tax, and freedom to the ryot to raise 
 on the land such crops as he finds most profitable and to deal 
 with his possessions, in the way of transfer or mortgage, 
 according to his necessities and requirements without being 
 subjected to constant official interference, had worked to 
 the disadvantage not merely of the idle and improvident 
 who are found more or less in every community, but of the 
 agricultural classes as a whole who are not fitted by edu- 
 cation and hereditary training to receive the boons con- 
 ferred on them, and that the remedy lies in reverting to 
 the old systems of administra,tion under which these classes 
 were maintained in a state of serfdom.^^^ I have no know- 
 
 "^ The Allahabad case referred to is Lalli versus Ram Prasad decided in 1886 (Indian 
 Law Reports, IX, Allahabad, pp. 74-85). In that case an extortionate bond under 
 which an original debt of Rs. 97 due by an agriculturist to a Mahajan had grown in 
 ten years to Rs. 991, after Rs. 157 had been paid, was set aside. Mr. Justice Mahmood 
 said : " I am aware that a general notion prevails in the mofussil that ever since the 
 repeal of the usury laws, the Courts of Justice are bound to enforce contracts as to 
 interest regardless of the circumstances of the case, the relative conditions of the parties, 
 and irrespective of the unconscionableness of the bargain. Courts of Justice in India 
 exercise the mixed jurisdiction of the Courts of Law and Equity, and in the exercise of 
 that jurisdiction, whilst bound to respect the integrity of private contracts, they must 
 not forget that cases which furnish adequate grounds for equitable interference must be 
 so dealt with, not because such a course involves any the least contravention of the law, 
 but because by reason of undue advantage having been taken of the weak and ignorant, 
 the contract itself is tainted with fraud in the broad sense in which that term is under- 
 stood in the Courts of Equity in England and America — a remark which seems to me 
 fnlly justified by the rule of justice, equity and good conscience, which we are bound to 
 administer in such cases." No case of a similar kind has come before the High Court of 
 Madras, and, therefore, it is difficult to say whether the Allahabad decision will be 
 followed in this presidency ; but if it is, it will fully meet cases of a really usurious and 
 extortionate type. The large powers given to the Courts to set aside contracts deliber- 
 ately entered into would need to be exercised with great discrimination and discretion, 
 but as there has been of late years very great improvement in the moral tone and legal 
 knowledge of the Native Judges before whom the cases are likely to come in the first 
 instance, there is considerable security for the powers being properly exercised. 
 
 ^'^ The ryots in the Bombay-Deccan must indeed be a remarkably idle, ignorant and 
 unthrifty race, for otherwise it is difficult to account for the fact that in some of the 
 writings of NatiVe politicians on the Bombay side the " culture system " adopted by the 
 Dutch in Java is recommended as a model for imitation by the British Government. 
 A description of the system is printed as appendix VI,-C. (8), and it will be seen from it
 
 266 
 
 ledge of the condition of the ryots in the Bombay Presidency, 
 but as far as the Madras Presidency is concerned I have no 
 doubt that there is no necessity for taking such a desponding 
 view. That a very large class of ryots, especially in the 
 Ceded districts which are subject to frequent droughts, are 
 still in a very low economic condition, does not admit of 
 doubt, but as already pointed out their condition is steadily, 
 if slowly, improving. Lands which had little or no value 
 before have acquired value, and the ryots having better secu- 
 rity to offer for the repayment of advances made to them 
 are able to obtain the advances on easier terms than before. 
 The extension of communications, chiefly railways, has miti- 
 gated the violent fluctuations in prices which used to occur, 
 and thus to some extent, has relieved the poorer ryots from 
 the necessity of placing themselves entirely in the hands of 
 sowkars and the richer ryots in regard to the disposal of 
 their produce. What has to be done in this presidency for 
 the amelioration of the condition of the ryots is, therefore, 
 not to reverse the policy which has been pursued for the last 
 fifty years, and which, so far as it has gone, has been fruitful 
 of good results, but to adopt such administrative measures 
 as will, without increasing the dependence of the ryots on 
 Government, afford to them facilities for exerting them- 
 selves to better their condition and stimulate a spirit of 
 self-help and enterprize among them. 
 
 94. I will now mention some of the measures which can 
 with advantage be adopted by Govern- 
 
 Practicable measures. . .,, 9 ^ ,-n <• .it • • i 
 
 ment with a view to still turther dimmish 
 the necessity for the dependence of the poorer ryots on 
 money-lenders. One of these is the reform of the kistbundy 
 by fixing the time for the payment of instalments of land 
 revenue due to Government in such a manner that the ryots 
 may not be put to the necessity of selling their produce 
 prematurely. A great deal has already been done in this 
 direction during the last five years, but there is still con- 
 siderable room for further improvement. Under the old 
 native system, as the land itself had in most places little or 
 
 that it is neither more nor less than a system nnder which the fertile island of Java 
 famed for its spices is worked as a farm for the benefit of the Dutch Home treasury by 
 means of compulsory servile labour. The Dutch do not make even a pretence of 
 acknowledging their obligation to educate the Javanese and to raise them in the scale 
 of civilization. They used to make an enormous profit from the colony which was 
 obtained mostly by treating all the lands as the property of the State and the tenants 
 as serfs liable to render compulsory service to the Dutch Government. Latterly the 
 Government, under pressure of public opinion, has been obliged to adopt a more 
 liberal policy towards the natives, with the result that the enormous gains formerly 
 made have disappeared, and State industries, which paid under a system of compulsory 
 labour, were found to be losing concerns when carried on under a sysem of free labour 
 Xbis shows clearly how the profits under the former system were derived.
 
 269 
 
 • 
 no value, the crop raised was regarded as the security for the 
 Government revenue, and the instalments of revenue payable 
 were so timed that a considerable portion of it might be 
 collected before the crop could be removed from the field or 
 the threshing ground. As lands became more and more 
 valuable, the necessity for regarding the standing crops as 
 security for the revenue ceased, and the tendency has 
 been to advance the kists so as not to compel the rvots to 
 borrow money for the payment of Government revenue and 
 to enable them to pay the revenue by the sale of their pro- 
 duce. The relief afforded to the ryots by the changes made 
 has been considerable; but the scope of the reform had to 
 be restricted in consequence of objections raised by the 
 Government of India on the score of difficulties likely to be 
 felt by the reduction of cash balances at particular periods of 
 the year. It is possible to introduce the change gradually 
 so as to obviate these objections which ought not to be 
 allowed to stand permanently in the way of a much needed 
 reform of this kind. Thus, for instance, in his " Preliminary 
 Note " submitted by Mr. Nicholson to the Madras Agricul- 
 tural Committee, 1889, he remarks as regards the former 
 kistbundy of the Tinnevelly district, "■ A kistbundy demanded 
 from December to May, three-quarters being payable by the 
 1 5th March, must be wrong when the crop is sown in Octo- 
 ber-November and picked only in March to May, and that in 
 fact the kists were actually paid by the broker whose terms 
 of advance were said to be Rs. 10 to Rs. 12 per podi of 
 cotton deliverable on, say, 15th May, the real market price 
 being then Rs. 16 or 16^, besides penalties for non-delivery 
 on due date. This kistbundy has now been altered to one 
 beginning in February, to the great relief of the ryot." The 
 present kistbundy for the Tinnevelly district consists of four 
 equal instalments beginning in February, and it is obvious 
 that if the produce could be delivered only in the middle of 
 May, three-fourths of the Government assessment is being 
 demanded, even under the altered kistbundy, at a time when 
 the ryot could not sell his crops to advantage. It is true 
 the ryot does not take advances for the delivery of crops 
 solely with a view to raise money to pay the Government 
 assessment, but there can be no doubt, that if the kists 
 were put forward, he would be able to make better terms 
 with the merchant than he does at present. In the case of 
 the southern taluks of Coimbatore where, as in Tinnevelly, 
 cotton is an important article of produce, the kistbundy 
 consists of* four equal instalments beginning with January 
 so that almost the entire revenue becomes due before the ryot
 
 270 
 
 could sell his produce. In many districts the ryot f)ays the 
 Government assessment by the sale of commercial produce, 
 reserving the grain produce for his own consumption. A 
 kistbundy fixed with reference to the actual conditions of the 
 several tracts of country in regard to the time at which ryots 
 deliver their produce to middlemen is therefore still a desi- 
 deratum. The crops grown and the times for harvesting and 
 selling them vary so much in different tracts, that considera- 
 tions of uniformity should not be allowed any great weight in 
 fixing the kistbundy. A properly regulated kistbundy would 
 undoubtedly be a great boon to the ryots, and I believe I 
 am within the mark when I say that the relief afforded to the 
 poorer ryots by such a kistbundy would be tantamount to a 
 remission of 5 per cent, of the Government revenue, while, 
 taking the presidency as a whole, the enhancement made by 
 the Settlement Department in taxation does not amount to 
 more than 5 per cent. 
 
 Another measure which can be adopted for the relief 
 of the ryot in backward districts like Anantapur, where 
 the climate is dry, soil barren, and crop failures frequent, 
 is to fix the annual revenue on the area actually cultivated 
 and not on the entire area of the holding. This will enable 
 the ryots to leave a portion of their holdings fallow in the arid 
 tracts where the chances of introducing improved methods 
 of cultivation are considerably remote. In the Anantapur 
 district, for instance, about 14 per cent, of the holdings 
 is left waste annually owing to want of rains at the proper 
 season. The assessment of the lower classes of soils might 
 be fixed somewhat higher than it is at present, when this 
 privilege is conceded. The ascertainment of the area left 
 waste, especially when the district has been surveyed, is 
 an easy process and need not entail on the superior officers 
 of Government great labour, while the necessity for careful 
 inspections for this purpose will keep the officers well posted 
 up in the agricultural conditions of the tracts under their 
 charge. Tahsildars have recently been relieved of their 
 magisterial duties and additional Revenue Inspectors have 
 been appointed to assist them; and the plan suggested is 
 now much more practicable than it was before, without risk 
 of oppression. 
 
 95. The most effective way, however, in which Govern- 
 ment can assist the rural population to 
 
 Aerricultnral banks. ... •, le (> -jUi-J j 
 
 extricate itself from indebtedness and 
 enable it to obtain loans on reasonable terms for land im- 
 provements and other purposes is by providing facilities for
 
 271 
 
 the establislimeiit of agricultural banks. The question has 
 already been taken up by the Madras Government which has 
 appointed Mr. F. A. Nicholson, C.S., to investigate the subject 
 and to report upon it. Mr. Nicholson is peculiarly qualified 
 for the task both by his study of the working of agricultural 
 credit institutions in European countries and by his intimate 
 knowledge of agricultural practice and the conditions of rural 
 life in this country, and his report is being awaited with 
 interest. Believing, as I do, that Government has in its 
 power, by the establishment of these banks, to accelerate 
 the prosperity of the agricultural classes in a marked degree, 
 I wish to make in this place a few general remarks on 
 the subject, more especially with a view to show that the 
 objections urged by the Secretary of State against certain 
 proposals made in 1883 for starting agricultural banks in 
 Bombay ought not to be allowed to prejudice the considera- 
 tion of the question at the present time, and that it is possible 
 to work these institutions successfully in this presidency 
 under conditions which will render the objections inapplicable. 
 In connection with the Bombay proposals Lord Kimberley 
 admitted that it was a serious misfortune that the land- 
 holders in India, even when comparatively prosperous and 
 able to give good security, were usually unable to obtain the 
 temporary accommodation they required except at a ruinous 
 rate of interest, and that it would be of the greatest possible 
 benefi.t to the agricultural community if the place of the 
 present greedy and extortionate money-lenders were supplied 
 by banks, and other institutions possessing sufficient capital 
 and honestly managed. The two chief objections urged by 
 him to the scheme proposed in Bombay were : 1st, that it 
 was doubtful whether any ingenuity could provide an effec- 
 tual substitute for the operation of the ordinary laws of 
 trading between the ryots and those, whether sowkars or 
 banks, from whom they obtain advances ; whether without 
 the stimulus of risk of loss as a result of neglect and want 
 of proper precaution on its partj any bank could carry on 
 its business with success ; and whether Government could do 
 directly much more for the relief of agricultural debtors 
 than enact laws enabling the courts to see that their poverty 
 or ignorance was not taken undue advantage of, and that they 
 were not oppressed or defrauded by their creditors ; secondly, 
 that the sowkars were not merely money-lenders, but also 
 purchased the ryots' produce and thus supplied them with a 
 market, and as the banks established under the auspices of 
 Government could hardly be expected to undertake this 
 function, it followed that the sowkars' assistance could not
 
 m 
 
 be wholly dispensed with, and the latter must, especially 
 when the banks' claims were made to take precedence of 
 their own, for self-protection necessarily impose harder con- 
 ditions than before on their debtors. 
 
 As regards the first objection, it must be remembered 
 that in all European countries where peasant properties 
 prevail and where the agricultural classes are far ahead of 
 the Indian ryots in point of education, enterprize and habits 
 of thrift, it has been found necessary and practicable for the 
 State to mitigate the evils of agricultural indebtedness by 
 giving facilities for the establishment of land credit banks. 
 It is true that the Government cannot usefully undertake 
 and effectually perform the functions of a bank in the way 
 of discounting the bills of traders in need of loans for short 
 terms when they have no other security to offer than their 
 own personal credit, but the case is entirely different as 
 regards loans on the security of immoveable property, the 
 value of which is capable of being ascertained with a con- 
 siderable amount of precision by official estimators aided by 
 information obtainable from the records of the Eegistration 
 Department. Professor Sidgwick has pointed out that this 
 is a work which can be performed efficiently by official 
 agency. He states " Experience has shown that peasant 
 cultivators are liable to become loaded with debt to money- 
 lenders who, either through the absence of effective compe- 
 tition — partly in consequence of a certain discredit that 
 attaches to their business — or perhaps sometimes through 
 unavowed combination, are enabled to exact very onerous 
 interest. This condition of debt tends to paralyse the pro- 
 ductive energies as well as to cause distress; accordingly, 
 under these circumstances. Governments may operate for the 
 benefit of production, no less of distribution, by encouraging 
 with special privileges the formation of commercial com- 
 panies for the purpose of lending money on easier terms. 
 Indeed, as was before said, the business of lending on the 
 security of land seems to be of a kind which might be under- 
 taken by Government itself, under certain conditions, with- 
 out the kind of risk that is involved in ordinary banking 
 business. So too, where the pawn-broker is the normal 
 resort in an emergency of poor labourers. Government by 
 undertaking the business of lending money at a moderate 
 interest may give sensible relief without offering any material 
 encouragement to unthrift. These encouragements would 
 tend to strengthen on the whole, rather than weaken, habits 
 of energetic industry, thrift and self-help in the individuals 
 assisted." In this country the considerations above referred
 
 273 
 
 to are applicable with, all the greater force for two reasons, 
 viz., first, that the agricultural classes being less intelligent 
 and self-reliant than the corresponding classes in European 
 countries require to be taken in hand by Government to a 
 greater extent than in the latter ; and, secondly, that Govern- 
 ment being a sort of co-proprietor with the ryot, the relations 
 between the two are more intimate. The relations and 
 responsibilities of Government may be briefly described as 
 follows : — The country is, and must for a long time continue 
 to be, agricultural. The returns from agriculture are pre- 
 carious in considerable portions of the country owing to 
 frequent droughts ; and this very uncertainty weakens the 
 inducements to thrift and provident foresight, and the ryot is 
 consequently very poor. Former Governments took all that 
 they could from the agricultural classes, leaving them but 
 the barest means of subsistence. During partial droughts, 
 they gave the ryots the wherewithal to carry on the culti- 
 vation on which their own revenue depended, but when a 
 really great famine came on the land, owing to the failure 
 of several seasons in succession, the people were left to die, 
 and did so in large numbers. The British Government, on 
 the other hand, has limited the demand for revenue, and 
 left the ryot to shift for himself in ordinary seasons, but 
 has undertaken the duty of saving life to the extent of its 
 power and resources, when extraordinary calamities occur. 
 Further, by the extension of communications and the crea- 
 tion of a foreign trade, it has imparted additional value to 
 the ryot's produce and mitigated the violent fluctuations in 
 the prices of food stuffs forming the chief articles of internal 
 trade. The ryot has thus been freed from a state of bond- 
 age or serfdom, and is allowed to enjoy the full benefit of 
 what he earns by his industry, enterprise or skill ; and the 
 result is that many ryots have accordingly benefited. The 
 present system, however, bears hard on the incapable, the 
 unfortunate and the unenterprising. No laws or institutions 
 can, except in an indirect way by educational agencies, help 
 those who will not help themselves, but whenever it is in the 
 power of Government to do so, means ought to be provided 
 for those who are merely unfortunate, — i.e., those who for no 
 causes which human foresight can prevent are reduced to 
 distress — obtaining, on reasonable terms and not as an elee- 
 mosynary grant, the help which would enable them to tide 
 over a brief season of distress or carry out improvements 
 which the Jands they cultivate stand in need of. This class 
 is a numerous one in this country, as the population is 
 mainly agricultural, the holdings of lands of small size 
 
 35
 
 274 
 
 and the seasons variable. Indeed, the duty and responsi- 
 bilities in this respect are amply acknowledged by Govern- 
 ment, and there can be no clearer proof of this than the 
 fact that during the last season of drought the Government 
 assisted the landed classes with loans to the extent of nearly 
 30 lakhs of rupees for the purpose of digging wells and effect- 
 ing land improvements, in the spirit of true charity " which 
 blesseth him that gives and him that takes." The establish- 
 ment of agricultural banks will, as will be shown further on, 
 enable aid of this kind to be rendered to the landed classes in 
 even a more effectual and a more desirable form. 
 
 The second objection urged by Lord Kimberley had refer- 
 ence to the special circumstances of the tract of country in 
 the Borabay-Deccan in which it was proposed to establish an 
 agricultural bank, and to the special privileges and conces- 
 sions asked for by the projectors to render the scheme work- 
 able. The ryots in the tract of country referred to were 
 admittedly in such a state of hopeless insolvency that it was 
 considered that the first tbing to be done to enable them to 
 deal with the bank was to rescue them from the clutches of 
 the sowkars by paying off their dues, as it was apprehended 
 that so long as it was in the power of the sowkars to harass 
 their debtors, the latter could not be expected to take advan- 
 tage of the facilities provided for obtaining loans on easy 
 terms. A scheme of liquidation of this kind would, doubt- 
 less, be a gigantic undertaking, and it might well be ques- 
 tioned whether the properties of these insolvent ryots would 
 be adequate security for the sums advanced on their behalf, 
 and whether in the case of the poorest classes, the assistance 
 of the sowkars could, under any circumstances, be dispensed 
 with. The projectors had also asked that the claims of the 
 bank should have precedence over all other claims, even 
 though the latter might be prior in point of time to the 
 former. Happily, the ryots in this presidency are not in the 
 hands of sowkars to such an extent as to render it necessary 
 to undertake the liquidation of the debts of the entire body 
 of the peasantry in order to clear the field for the operations 
 of banks. The ryots here do not find any difficulty in dis- 
 posing of their produce. In the case of commercial produce, 
 in regard to which the fluctuations in the demand in foreign 
 markets have to be watched, middlemen and brokers are 
 doubtless a necessity, but even in these cases, if the ryots 
 can obtain money on easier terms than heretofore, they will 
 be able to obtain better terms from brokers and merchants 
 whose gains will be limited to a fair mercantile profit, instead 
 of consisting, a-s they do at present, of these high profits, as
 
 ^75 
 
 Well as of a high rate of interest on the money laid out by 
 them in trade. The objection, however, that the grant of 
 special privileges declaring that the claims of the banks 
 protected by Government shall have preference over all other 
 claims is likely to render the terms on which the sowkars 
 would be willing to lend money to such of the poorer ryots 
 as could not obtain loans from the banks harder than before, 
 is quite valid. And, accordingly, when, in 1884, a proposal 
 was made by an association designated the Land Mortgage 
 and Commercial Association, Cuddalore, to establish a bank 
 on the condition that privileges similar to those above re- 
 ferred to were to be granted, the Government very properly 
 declined to comply with the request on the ground that the 
 grant of such privileges to a particular bank was likely to 
 render the terms obtainable from ordinary bankers and mer- 
 chants harder than ever, by rendering the security offered 
 of uncertain value. It would, however, be quite possible 
 to establish agricultural banks which could be successfully 
 worked, even though no special privileges of the kind were 
 granted. 
 
 96. Agricultural banks, which are likely to be successful 
 
 The nature and consti- ^^ t^^is couutry, are land credit institu- 
 
 tution of the proposed tious like the Swiss Land Credit Banks, 
 
 Agricultaral Banks. ^ dcSCriptioU of which is givCU in the 
 
 paper printed as appendix VI. -C. (9). The management and 
 control of these banks should be vested in a directorate com- 
 posed partly of Government officials and partly of non-official 
 persons. The two essential conditions for success are, first, 
 the"provision of securities for the stability of the institutions 
 and for good faith in their management and command of the 
 requisite capital on easy terms ; and, secondly, fairly accurate 
 knowledge of the solvency and other circumstances of the 
 applicants for loans and of the adequacy of the security 
 ofi^ered to admit of applications being complied with the 
 utmost promptitude. Official supervision and the use of 
 Government credit are necessary to secure the first, and the 
 association of non-official agency possessed of local knowledge 
 with official agency in the transaction of business is necessary 
 to secure the second of these conditions. The arrangements 
 may, after the model of the constitution of the Swiss Land 
 Credit Banks above referred to, be somewhat as follows : 
 A bank might be established at a taluk station, Karur for 
 instance, where, as we have already seen, several firms ©£' 
 Nattukottai Chetties lend money at exorbitant rate& of 
 interest to ryots. The capital required might be subscribed; 
 in shares of, say, Rs. 50 each, the Government^ undertaking;
 
 2*76 
 
 to find half the capital required to work the concern. The 
 Government obtains its loans at about 3-| per cent, interest, 
 and it might well be content with an interest of 4 per cent, 
 on the capital subscribed by it, especially when a guarantee 
 fund is constituted to meet losses. It should guarantee the 
 capital subscribed by private individuals, together with 4 per 
 cent, interest. Loans should be granted to applicants on 
 the security of immovable property. As it is not desirable 
 to make loans obtainable on too easy conditions at the com- 
 mencement, thereby tempting people to bori'ow money un- 
 necessarily, the rate of interest charged for loans granted by 
 the bank might be fixed at 9 per cent, and gradually reduced 
 to 6 per cent, in course of time. The dividend payable to 
 private shareholders might be limited to 6 per cent., any 
 excess above it being credited to a guarantee fund. Any 
 excess above 4 per cent, falling to the shares subscribed by 
 Government might, likewise, be credited to the guarantee 
 fund. In course of time it would be possible to find funds 
 by issuing debentures in amounts as small as Rs. 50 and 
 thereby reduce both the interest guaranteed to private share- 
 holders and the interest charged to applicants for loans ; but 
 at the outset a reasonably high rate is necessary in both cases. 
 The control and inanagement of the bank should be vested in 
 a council of 20 or 30 persons, of whom one-third might be 
 nominated by Government and the remaining two-thirds 
 elected by the shareholders, the Tahsildar of the taluk being 
 ex-ojflcio President. The council might meet half yearly to 
 settle the scheme of business for the ensuing half year and 
 fix the rates of interest to be charged, &c., and the transac- 
 tion of business might be entrusted to a committee composed 
 of about half a dozen persons, of whom one-half might be 
 Government officials and the remainder non-official persons, 
 with the Sub-Registrar at the taluk station as Secretary. 
 The Sub-Registrar is peculiarly qualified for this duty, as he 
 has command of the official registers of transactions affecting 
 immovable property and the means for acquainting himself 
 with the market value of lands offered as security for loans 
 applied for. The loans might be made repayable by instal- 
 ments or by a sinking fund so adjusted as to extinguish the 
 debt in 10, 15 or 20 years, the longer period being allowed in 
 the case of loans for substantial improvements to land, such 
 as wells and other works of irrigation or drainage. There 
 would be no enquiry as to the purposes for which the loan was 
 required ; but if the improvement has actually been made, the 
 borrower should be allowed, on furnishing proof thereof, to 
 convert a loan for a short period into one for a longer period.
 
 277 
 
 Loans might be made up to two-thirds or three-fourths of the 
 value of the property offered as security, and in the case of 
 property in which several members of a family have interest, 
 the consent of all the members of the family or those 
 representing them shquld be required. This is the rule 
 adopted by the several "funds" or "benefit societies " in 
 Madras, and no difficulty has been experienced in working it. 
 In the Mylapore Permanent Fund, for instance, which 
 has been in existence for over 20 years, the losses incurred 
 on account of defective title as regards property offered as 
 security have been very small. It is in making these enquiries 
 that the assistance of non-official members of the committee 
 is likely to be of the greatest value. The funds of the bank 
 should be lodged in the Government treasury ; and the com- 
 mittee might be allowed to search the registration books 
 without payment to ascertain whether and to what extent 
 properties offered as security for loans are encumbered. I 
 do not think that any special privileges should be conferred 
 on the bank in regard to the recovery of debts, for such 
 privileges might, as already remarked, be taken advantage of 
 by dishonest borrowers to defeat the claims of persons having 
 prior encumbrances on the properties mortgaged to the bank, 
 and the additional risks thus introduced might have the 
 effect of raising the rate of interest for loans not obtainable 
 from the bank. The necessity for such special privileges 
 arises from the fact that, owing to the imperfect record of 
 transactions connected with landed properties maintained 
 in registration offices, and the enormous labour and expense 
 involved in obtaining the necessary information, the risks 
 in granting loans on the security of immovable property 
 are now considerable. I have in my official capacity made 
 proposals ^'^^ for combining the registers kept in Eevenue 
 offices for the purpose of showing the particulars of lands held 
 by every individual assessed for the land revenue with the 
 
 1*° It would not be proper to enter into a discussion in detail, in this place, of the 
 improvements to be carried out in the registration system for the purpose of facili- 
 tating the ascertainment of encumbrances on landed properties. The importance of this 
 question has been fully recognized by the Secretary of State for India, who, in his 
 despatch, dated 23rd October 1884, on the proposal to establish agricultural banks in 
 the Bombay Presidency, has observed : " It is possible that the adoption of an 
 " improved system of registration of titles to land might tend to give such further 
 " security and greater facility to the business of agricultural banking as would render it 
 " practicable for private capitalists to embark thereon with a fair prospect of success, 
 " on terms which should not be so onerous to the cultivating classes as those to which 
 " the latter are now compelled to submit when borrowing from the village sowkars, 
 " It is, I am informed, in reliance on effectual registry of titles that the land banks of 
 " Europe and the British colonies have been carried on, and although I am conscious of 
 " the very diff*rent conditions under which an Indian agricultural community exists, 
 " yet, I recommend this suggestion to the consideration of your Excellency's Govern- 
 " ment as possibly affording some opening in the desired direction."
 
 278 
 
 reo^isters maintained in registration offices in such a manner 
 as'to allow of the encumbrances existing on the lands being 
 readily ascertained ; and if this scheme be sanctioned, the 
 operations of the banks will be immensely facilitated. The 
 accounts of the bank should be audited every year, and for 
 this purpose the services of District Registrars might be 
 availed of. The success of the banks would, in a great 
 measure, depend upon the promptitude with which applica- 
 tions for loans are disposed of, in order that persons in need 
 of loans might obtain the loans at the time they are in need 
 of f ands ; and it will be seen from the methods of dealing of 
 the Nattukottai Chetties at Kariir that their success is due 
 mainly to the quickness with which they transact their busi- 
 ness. There is, however, no reason why, under proper 
 supervision, the business of the bank should not be done with 
 equal expedition. When the usefulness of the bank develops, 
 it may be possible to have branches at each Sub-Registrar's 
 station within the taluk. The managing committee should 
 have power to grant further time for payment of instalments 
 on due cause shown, and the general council should, likewise, 
 have power to postpone the collection of instalments in very 
 bad seasons by a general order, and also to arrange for sales of 
 properties pledged for the loans in such a manner that they 
 mio-ht not be thrown on the market at one and the same time. 
 The above sketch is intended simply to show the manner in 
 which an institution of this kind can be worked, and there 
 can be no difficulty in modifying the details so as to suit the 
 circumstances of particular localities in which the institutions 
 are established. 
 
 97. The most important question in connection with 
 
 these land credit banks is, of course, the 
 A^S5wtfX^'*°'' question of provision of funds. I have 
 
 made sonie enquiries on the subject, and 
 the results tend to show that abundant funds will be forth- 
 coming if the solvency of the institutions be guaranteed by 
 Government, and the management be such as to inspire confi- 
 dence. It is quite certain, on the other hand, that, without 
 a Government guarantee, the banks cannot be expected to 
 be successful. Centuries of misgovernment have made the 
 people in the rural tracts very suspicious and averse to let- 
 ting their money go out of their sight, and though this f eeHng 
 is wearing away, occasional failures of banking firms, through 
 fraud or mismanagement, have helped to retard the growth 
 of confidence in private banking institutions. Lawyers and 
 Government officials — the latter of whom have been practically 
 debarred from investing their savings in landed properties by
 
 279 
 
 the rules promulgated by Government — will undoubtedly 
 invest money in the banks if they can be sure of getting the 
 principal back with 4 per cent, interest, with the further 
 chance of the interest being increased to 6 per cent. The 
 people in the rural tracts, who are solely guided by popular 
 report and tradition, will, there is little reason to doubt, 
 likewise commence to invest in these banks, and, if once their 
 natural timidity is overcome, and they are made to see that 
 the principal, at least, is quite safe, the investments are likely 
 to increase very rapidly. There are indications in the deve- 
 lopment of what are called ' funds ' or benefit societies, that 
 the people in many parts of the country are feeling the neces- 
 sity for the establishment of such associations. There are 
 123 such associations with a nominal capital of 2 "204 crores 
 of rupees and a paid up capital of 78*2 lakhs registered under 
 the Joint Stock Companies' Act in this presidency. Besides 
 these, there are large numbers of ' chit funds,' which are re- 
 gistered under the Registration Act without being registered 
 under the Joint Stock Companies' Act, and a great many 
 others which are not registered under either enactment. In 
 the Sub-Registrar's ofiice at Kasargdd, in the district of South 
 Canara, I found that the agreements of 16 such associations 
 were registered in a single year, viz., 1891, the total number 
 of members being 204. The arrangements made are gener- 
 ally of the following description. A number of persons, say 
 16, agree to contribute annually Rs. 100 each, on a fixed 
 date, and the sum collected in the first year, Rs. 1,600, is 
 made over to one of them, who is appointed manager of the 
 concern and is required to give security for the due account- 
 ing of the moneys received by him and for ensuring payment 
 of his contributions regularly during the remaining 15 years. 
 As regards the money collected in the second year, lots are 
 drawn as to which of the remaining 15 persons is to have it, 
 and the process is repeated every succeeding year till every 
 one of the members has obtained a full year's contribution. 
 The members who get the use of the money during the early 
 years of the period for which the agreement is to last are, 
 of course, the most lucky, and the man who gets it last gets 
 back barely the sum subscribed by him without any interest. 
 Nevertheless, these arrangements are extensively resorted to, 
 as it makes people subscribe from time to time small sums, 
 which, if retained by themselves, might be frittered away, in 
 the hope that they may receive a lump sum after an interval, 
 even though the interval should be one of 16 years. Another 
 method of nianaging this business is to put up the sum 
 collected annually to Dutch auction, and hand over to the
 
 280 
 
 lowest bidder among the members the amount bid. Thus, 
 one of the members in want of money might consent to 
 receive Rs. 1,400 in lieu of the sum of Rs. 1,600 he is entitled 
 to receive. The difference of Rs. 200 is divided amonsf the 
 other members, and the process is repeated year after year 
 during the whole period of the agreement. The aggregate 
 annual amount payable under the 16 agreements registered 
 in Kasarg(5d Sub-Registrar's office was Rs. 15,000, and the 
 periods for which the agreements were to be in force varied 
 from 9 to 20 years. Members who fail to pay a particular 
 instalment are charged interest at 24 per cent., which is 
 debited to the contributions already made by them. Similar 
 ' chit ' or ' kuri ' agreements are very common in Malabar, 
 Tinnevelly and Madura districts. The arrangement is a 
 cumbrous one and difficult to work owing to failures and 
 casualties. xvTevertheless, the fact that people enter into 
 such arran2"ements shows how sorely they stand in need of 
 banking facilities. 
 
 As regards funds to be provided by Government, I do 
 not think that a very large sum will be necessary at the out- 
 set, as the scheme will have to be experimentally introduced 
 in a few places, and it seems to me that Government will 
 really incur no risk whatever in connection with the scheme. 
 The Government might safely place at the disposal of the 
 banks a portion of the Savings Bank deposits, which will thus 
 earn interest for Government, instead of lying idle as at 
 present. The balance on 1st April 1892 to the credit of 
 depositors in Post Office Savings Banks throughout India 
 was upwards of 7 crores of rupees, the amount appertaining 
 to the Madras Presidency alone being above 63 lakhs of 
 rupees. The balance on hand of these deposits is likely 
 to grow rapidly from year to year. In fact, the limits of 
 yearly deposits in the Post Office Banks, which were origin- 
 ally fixed at Rs. 500, were reduced to Rs. 200 in 1889, because 
 the amount deposited was so large that it was considered 
 that Government was likely to suffer loss by keeping so 
 much money idle in their hands, while paying interest to the 
 depositors. 
 
 98. Of the great utility of land credit banks in furnish- 
 ing, on reasonably easy terms, the capital 
 
 The utility of Land - j r • ^^. 1 ■ j. 'i. 
 
 Credit Banks. required tor agricultural improvement, it 
 
 is not necessary to write at any length. 
 It is obvious that if peasant proprietors have to borrow 
 money at 12 or 18 per cent, interest, the only improvements 
 that can be carried out without loss are those which will cost
 
 281 
 
 little and yet afford abundant returns ; and cases of this kind 
 must, of course, be very few. For instance, take the case of 
 irrigation by wells. A well, costing say Rs. 300, will irri- 
 gate about 4 acres, and to work the well by means of bullock- 
 power would require probably about Rs. 100 more, including 
 cost of wages of labour and depreciation of live and dead 
 stock. It makes to the ryot an enormous difference, whether 
 the sum of Rs. 400 can be borrowed at 6 per cent, interest 
 or at 12 or 18 per cent. In the first case, the annual charge 
 for interest amounts to Rs. 6 an acre, and in the second and 
 third cases to Rs. 12 and Rs. 18, respectively. If the produce 
 of the 4 acres of unirrigated land be taken at 40 bushels of 
 grain at the rate of 10 bushels an acre and valued at Rs. 40 
 at the rate of Re. 1 a bushel, it would not pay the ryot to 
 irrigate the lands, unless the produce is tripled, in other 
 words unless the produce per acre increases to 30 bushels, 
 if the interest on the outlay is 12 per cent. If, however, 
 the interest is only 6 per cent., the cultivation might pay if 
 the produce is doubled, or, in other words, is at the rate of 
 20 bushels an acre. Of course, if money has to be borrowed 
 at the rate of 18 per cent., cultivation by wells may be 
 stated to be well nigh impossible. Irrigation in this country 
 increases the produce enormously ; and in the case of ap- 
 plication of expensive manures, there is comparatively much 
 less scope for increase of produce. In the latter case, the 
 increase of produce per acre should be such as to pay 
 not only the interest on the outlay on manures, but also 
 such portion of the cost of the manures as will allow of its 
 being recouped during the period in which the manures 
 are exhausted. Further, when the risks in well-construction, 
 owing to uncertainty of finding water at a reasonable depth, 
 and the liability of the country to suffer from droughts, are 
 borne in mind, it can be readily conceived how much the 
 hard terms on which capital required has to be obtained 
 must retard agricultural improvements in this country. The 
 Government, no doubt, has been anxious to lend money for 
 land improvements at low rates of interest, and owing to the 
 prevalence of drought during the last two years, the Govern- 
 ment rules, in this respect, have been largely availed of by 
 the ryot population. In ordinary seasons, however, the ryot 
 has to fall back upon the assistance of the sowkar when \i.& 
 needs funds for purposes other than land improvement, and! 
 what is required is, that the rate of interest for money 
 needed by him for all purposes should be reduced. The 
 present arrangement, under which all prior claims are post- 
 poned to the claim of Government to recover the loan granted 
 by it for agricultural improvement by the sale of the land 
 
 36
 
 282 
 
 to be improved, has the effect of impairing his credit with the 
 sowkar in emergencies which, under the conditions of rural 
 life in this country, are very common, and it is not, there- 
 fore, surprising that the ryot should hesitate to avail him- 
 self of Government help except in seasons when he is unable 
 to obtain assistance from the sowkar. Another reason for the 
 ryots not readily availing themselves of Government help is 
 the stringency of the rules made with a view to ensure that 
 loans are granted on adequate security and the instalments are 
 punctually collected as they fall due. These inconveniences 
 will be greatly minimized when a bank, which is managed by 
 a directorate composed partly of ofificial and partly of non- 
 official agency, with full power to grant extension of time for 
 the payment of instalments on due cause shown, lends money 
 for all purposes, and not merely for land improvements. 
 
 Land credit banks will not, of course, directly benefit 
 either the landless classes or cultivators who have not secu- 
 rity of tenure in the lands they cultivate, as for instance, 
 tenants in Malabar, and in some of the northern zemindaries. 
 Indirectly, however, the establishment of these banks will 
 benefit them by reducing the rates of interest, inasmuch as 
 persons who are able to offer proper security for loans to 
 be obtained on easy terms from these banks will be enabled 
 to compete for the custom of lending to poor agriculturists 
 to a greater extent than hitherto. For the landless artisan 
 classes and day labourers, it might be considered whether 
 institutions, like monies de piete established in European 
 continental countries, for carrying on pawn -broking on a 
 small scale could be established under the guarantee and 
 superintendence of municipal corporations in large towns. 
 There are, however, great difficulties in the way of workmg 
 such institutions, and in this country the goods pawned will 
 consist mostly of jewels and trinkets of inferior materials 
 difficult to value. The interest also except for loans for very 
 short periods is not so exorbitantly high as to make the 
 interference of Government necessary to check it. In Eng- 
 land itself, the legal rate of interest for loans not exceeding 
 £2 obtained from pawn-brokers is 25 per cent, per annum. 
 
 99. Schemes for promoting habits of thrift depend for 
 - . „ , their success on the facilities afforded to 
 
 Savings Banks. i . , i -i , p • • t 
 
 people to take advantage oi trivial occa- 
 sions to save small sums of money, which, if they retained 
 in their own hands, they would be under a great temptation 
 to spend unprofitably. The post office savings bar.ks' scheme 
 introduced a few years ago by the Government of India is 
 a step in the right direction, and it has evidently a great
 
 283 
 
 future before it. In 1890-91, there were open 6,455 post 
 oflBce savings banks in the whole of India, and 981 such 
 banks in the Madras Presidency, with a balance to the credit 
 of depositors of 6*35 crorea and 61 lakhs of rupees, respec- 
 tively. Of these sums, the amounts to the credit of native 
 depositors were 5*57 crores and 49 lakhs of rupees respec- 
 tively. The deposits would have been much larger but for 
 the reduction made in 1889 in the maximum limits of sums 
 that can be deposited by a single person. Considering the 
 importance of giving all possible encouragement to persons 
 wishing to deposit money in savings banks, I venture to 
 think that the reduction was a mistake. The average 
 amount deposited by each depositor during the year 1891-92 
 was in this Presidency only Rs. 30, and the average balance 
 at the end of the year only Rs. 90, and this shows that the 
 banks are being made use of only by the poorer classes and 
 do not compete with the larger banking institutions to an 
 appreciable extent. The reason given for the reduction was 
 that facilities had been afforded to persons residing in the 
 interior for investing money in Government securities through 
 post office savings banks and also to deposit them for safe 
 custody, and it was accordingly unnecessary and undesirable 
 to maintain high limits for deposits. The classes that deposit 
 money in post office savings banks are, however, too poor 
 to buy Government securities. The facilities afforded by 
 the post office savings banks have so far been availed of 
 mainly by Government servants, servants of local bodies and 
 Railway companies, pleaders and other professional classes 
 of the community. The commercial classes and domestic 
 servants have also made deposits, but the agricultural classes 
 have scarcely as yet taken advantage of the banks. In Eng- 
 land, considerable impetus appears to have been recently given 
 to the formation of penny savings banks by the issue of a 
 circular from the educational department, calling the attention 
 of schoolmasters and school managers to the importance of 
 inculcating thrift upon children under their care, and point- 
 ing out the desirability of establishing a bank in every school. 
 It might be desirable to issue a similar circular in this Presi- 
 dency though in this as in other schemes newly introduced 
 no very great results can be expected at the outset. The 
 format^ion of benefit societies should be encouraged as much 
 as possible ; there is a great demand for such societies in this 
 Presidency, and some years ago, some persons taking advan- 
 tage of this started ' bubble ' companies which soon collapsed. 
 An amendment of the law insisting on the registration of 
 such societies, giving power to Registrars to refuse sanction 
 for the establishment of such as are proposed to be worked
 
 284 
 
 obviously on an unsound basis and providing for a care- 
 ful oflBcial audit of their accounts, would have a most bene- 
 ficial effect. There should also be Registrars appointed for 
 various places in the mofussil, in order that persons may not 
 be compelled to proceed to Madras for the registration of such 
 societies. Whenever there was a necessity for extraordinary 
 expenditure on account of marriages or deaths in a family, it 
 was formerly the custom for kinsmen and clansmen to sub- 
 scribe towards the expenses, each according to his means, 
 the understanding being that persons who had I'eceived this 
 benefit were, in their turn, expected to assist when similar 
 occurrences took place among the other members of the com- 
 munity. This custom still lingers in the rural parts, but 
 owing to the dispersion of the members of communities conse- 
 quent on facilities for free locomotion, the custom is rapidly 
 disappearing, and the necessity for making provision for 
 contingencies of the kind by means of benefit societies and 
 such like institutions is being increasingly felt. The country 
 has not yet arrived at a stage at which it would be possible 
 to work general schemes of insurance successfully, but the 
 scheme introduced by the Government of India in the case of 
 post oflace servants is a step in the right direction, and it is 
 desirable that it should be extended to other departments of 
 the Government service. Though confined to the official 
 classes, the educative effect of such measures on the general 
 population will be considerable. ^^^ 
 
 100. In former days, as we have seen, the farming out of 
 Further remarks on taxcs, the waut of checks ou the rapa- 
 the advantages of bank- city of officials, and the moDopoly privi- 
 xng taci ities. leges possessed by bankers and special 
 
 classes of traders, though detrimental to general welfare, 
 were favorable to the concentration of a large amount of 
 
 "' The violent fluctuations in condition due to the uncertainty of seasons and 
 other causes is a great hindrance to the formation of habits of provident foresight, and 
 the only remedy is to minimize the iujurions effects of such irregularities by schemes 
 of insurance whereby " aggregate regularity " is availed of to counteract the effects of 
 " individual irregularity " or " accidents." rrom a report on " Rice cultivation in 
 Italy " published as a " bulletin " by the Madras Agricultural department, it appears 
 that there are societies in Italy, which insure cultivators against losses by hail. The 
 report states, " Hail is one of the inflictions most feared by rice cultivators. If it falls 
 after the ear is formed and is long continued, it may destroy the whole crop over 
 a large area. Insurance against hail is universal. The following figures show the 
 amount of this business done by the Mutual Assurance Society in Milan in the six years 
 1881-1886. Value insured, 81'74 million francs ; premiums received, 551 million 
 francs ; damages paid, 401 million francs. The premiums paid vary from 6 to 9 per cent, 
 on the gross value of the crops, or about 14 to 21 francs per acre. The three principal 
 societies, which have nearly all the business of the country in their hands, insure 
 annually against hail to the value of about 50 millions of francs." It luight be worth 
 while to enquire how the damages are assessed and fraudulent claims prevented. It may 
 not be possible to introduce similar institutions at present, but I allude to the matter to 
 show in what direction improvements in the future may proceed.
 
 285 
 
 wealtli among a small number of persons. I have already 
 alluded to the tendency of the present regime to diffuse wealth 
 among the masses of the population, and this tendency, 
 while improving the condition of the lower classes to a 
 certain extent, dissipates the wealth, which might be other- 
 wise available for being devoted to productive purposes. 
 The corrective of this tendency is, of course, the provision 
 of banking facilities whereby the wealth diffused can be col- 
 lected again in one mass in a form readily available to those 
 who are in need of capital for carrying on industrial under- 
 takings. As Mr. Bagehot has pointed out " a million in the 
 hands of a single banker is a great power ; he can at once 
 lend where he will, and borrowers can come to him, because 
 they know or believe that he has it. But the same sum 
 scattered in tens and fifties through a whole nation is no 
 power at all ; no one knows where to find it, or whom to ask 
 for it." There are various classes of the community in pos- 
 session of capital who, for want of ability, opportunities, or 
 inclination, do not employ it directly in industrial enterprises ; 
 these are, first, persons who, by age, sex, or infirmity, are dis- 
 abled from active occupations; secondly, zemindars and rajahs, 
 who, from a sense of dignity or love of leisure, do not care to 
 engage in undertakings requiring constant attention to busi- 
 ness ; and thirdly, persons engaged in Government service or 
 in professional occupations whose work is of too engrossing 
 a character to permit of their being constantly on the look-out 
 for opportunities for the employment of their savings. Even 
 of those who venture on business undertakings, success is 
 confined to those who have special aptitudes, and this deters 
 many men from incurring the risks. Banking facilities would 
 furnish persons with special aptitudes for industrial enter- 
 prises with the capital needed by them, while giving those 
 who have capital without special aptitudes for business, 
 opportunities for earning an income by lending it. Owing to 
 want of banking facilities in this country, with the exception 
 of trading classes with hereditary aptitudes and connections, 
 the modes of investment hitherto known and practised have 
 been — first, investment in lands ; second, investment in jewels 
 and houses; third, hoarding; and fourth, investment in Gov- 
 ernment securities. With the growth of security of tenure 
 and the gradual diminution of undefined exactions, land has 
 come to be regarded as a " safe investment," and the compe- 
 tition for it has raised its value to such an extent, that in the 
 more populous districts of the Presidency, investments in land 
 do not yield a larger return than investments in Government 
 securities, except to the cultivating classes. Latterly, how-
 
 286 
 
 ever, in view of the small returns and the risks ^^^ and trouble 
 in the management, landed property has been somewhat los- 
 ing its attractions as a field for investment ; and if banking 
 institutions under the guarantee of the State are established, 
 many persons, who invest money in land, would take 
 shares in banks, thus still further lightening the pressure on 
 land to the manifest advantage of the cultivating classes who 
 will be enabled to obtain lands for cultivation on easier terms 
 than heretofore. There can be no doubt that, in this coun- 
 try, an immense quantity of money is either hoarded or con- 
 verted into ornaments. The net imports of gold into India 
 between 1565 to 1835 or during a period of 270 years was 
 112 millions sterling, while the net imports in the 56 years 
 from 1835 to 1891 was 140 millions. The net imports of 
 silver from 1850 to 1891 was 302 millions Ex. 317|- millions 
 Rx. of silver were coined in the Indian mints from 1835, 
 being nearly 15 rupees per head of the population; but of 
 this quantity, Mr. Harrison (in his article in the Economic 
 Journal for June 1892) estimates that only 166 millions 
 Rx. or 5*8 rupees per head is now in circulation, the remain- 
 der being either hoarded or converted into ornaments. The 
 practice of hoarding is gradually going out except in rural 
 tracts, but that of investing money in jewels is probably on 
 the increase. Sir David Barbour collected information in re- 
 gard to the quantity of gold and silver hoarded, more especi- 
 ally in Upper India, for the use of the Royal Commission on 
 the value of precious metals. He estimated the quantity of 
 gold and silver hoarded since 1835 at something like 300 
 
 "^ The same tendency has been noted as being observable among the small pro- 
 prietors in France whose one passion was the acquisition of land. Guyot, in his 
 Principles of Social Economy, observes : " The bourgeois proprietor is beginning to 
 Bee that, if the land which serves him as an investment has its advantages, it has also 
 grave disadvantages for a man who looks for a return without troubling himself about 
 it. The pride he once took in treading his own soil is beginning to disappear. The 
 rail roads are making him a traveller and breaking up his attachment to a particular 
 spot. He finds personal property far more convenient than land, which involves drain- 
 ing and planting and legal pi-oceedings ; or houses which he must look after and keep 
 in repair, and with the tenants of which he cannot always keep on good terms. So he 
 goes to the stock-broker, instead of the notary, and takes in a Railway Company or 
 miub, or buys into the rentes fonciere, a company baaed on the observation of this very 
 psychological fact to which I have been drawing attention." Mr. Jenkins, in his Beport 
 on the Agriculture of France, writes of peasant proprietors : " It must, nevertheless, be 
 admitted that the French peasant has, for some years past, been learning to look for 
 an investment of his capital elsewhere than in land. The national loan, after the 
 termination of the Franco-German war, was to him the alphabet of the language of 
 investment in anything but land. The hoards of thousands of farmers were dug op 
 from the ground, hoisted from the well, cut out of the mattress, pulled down the chim- 
 ney, and in fact, brought to light from all sorts of secret places to enable M. Thiers to 
 get rid of the hated Prussians. A considerable proportion of the peasants, I am 
 assured, looked upon the subscription to the national loan as a patriotic act for which 
 their only reward would be the disappearance of the invader. In course of time, they 
 found that this ' subscription ' brought them an annual interest, that t^e principal sum 
 had a fluctuating value, and that they had the right to sell their own investment and 
 buy their neighbours.' They thus learnt to speculate and now the French peasants 
 are among the most eager Bpeoalators in the world in a small way,"
 
 2$7 
 
 millions Rx. It was found on enquiry that the people living 
 in Simla and the hills had absorbed in 25 years 6'6 crores of 
 rupees worth of silver. The Maharajah of Burdwan had a 
 large hoard, out of which £230,000 were brought out, and 
 the Gwalior regency' invested 3 millions sterhng in Govern- 
 ment securities, out of the hoard which was left by the late 
 Maharajah. A native prince was found to be hoarding at 
 the rate of £40,000 or £50,000 a year. Sir David Barbour 
 was of opinion that the introduction of banking facilities 
 would not affect the habits of the people very much in this 
 respect ; the European banks took deposits from any body, 
 but the hoarding, as a rule, was by men who hoarded so little 
 individually that no bank would accept their deposits ; nor 
 would they themselves be willing to deposit money in a bank. 
 It is obvious, however, that if small banks were established 
 under Government guarantee, like the Swiss land credit 
 banks, small deposits would be received and the reluctance of 
 the people to make deposits would be gradually overcome. 
 The practice of hoarding makes an immense amount of 
 wealth practically useless for industrial purposes, and if 
 even a third part of the wealth thus remaining unutilized 
 were invested in industrial undertakings, it would bring 
 about a great revolution in commerce. Of the entire amount 
 of debt of the Government of India, viz., 218 millions Rx, only 
 25 millions are held by the natives of the country, 1 00 millions 
 Rx. invested in the rupee debt would pay it off almost entirely, 
 and save the country from an annual remittance of 4 millions 
 Rx. on account of interest. The great utility of small banks 
 as contradistinguished from large central banks in this respect 
 has thus been explained by Mr. Bagehot : " A single mono- 
 polist issuer of notes, like the bank of France, advertises bank- 
 ing slowly. On the other hand, the Swiss banks, where 
 there is always one or more in every canton, diflfuse banking 
 rapidly. The reason is that a central bank which is governed 
 in the capital and descends to a country district has much 
 fewer modes of lending money safely than a bank, of which 
 the partners belong to that district and know the men and 
 
 things in it But the mass of loans in a 
 
 rural district are of small amount ; the bills to be discounted 
 are trifling ; the persons borrowing are of small means and 
 only local repute ; the value of any property they wish to 
 pledge depends upon local changes and circumstances. A 
 lender who lives in the district, who has always lived there, 
 whose whole mind is a history of the district and its changes, 
 is easily able to lend money safely there. But a manager de- 
 puted by a single central establishment does so with difl&- 
 culty. The worst people will come to him and ask for loans.
 
 288 
 
 His ignorance is a mark for all the shrewd and crafty people 
 thereabouts. He will have endless difficulties in establishing 
 the circulation of the distant bank, because he has not the 
 knowledge, which alone can teach him how to issue that 
 circulation with safety." It is from this point of view that 
 it is important that the banks established in the rural tracts 
 should have in its directorate non-official members with local 
 experience. The existence of such banks will also, to some 
 extent, diminish the practice of investing money in jewels. 
 So long as money is kept idle, pressure is put upon the 
 head of the household by the female members of the family 
 to lay out the money in the purchase of jewels ; when it is 
 lodged in a bank and earns interest, the pressure and the 
 temptation to yield to it would be considerably less. There 
 are, of course, reasons founded on social necessities, which 
 contribute to the maintenance of the practice of purchasing 
 jewels for women over and above those arising from a desire 
 for their personal adornment. These are, first, that, as jewels 
 are under the personal control of the female members of the 
 family to a greater extent than any other form of property 
 would be, and less subject to the interference of their hus- 
 bands, sons, or other relations, provision intended for them 
 takes this form ; and secondly, as the Hindu law does not 
 give a share in the father's property to the daughters, 
 social usages founded on natural sentiment supplement the 
 deficiencies of the law in this manner. 
 
 Another great advantage likely to result from the provi- 
 sion of banking facilities is the extension of the use of credit 
 instruments, and the saving affected by the economizing of 
 the use of coin. There has been a considerable extension of 
 the circulation of bank notes during the last two years, the 
 value of circulation amounting to 24 crores of rupees against 
 a value of 6 crores of rupees in 1864. The circulation of 
 bank notes not covered by coin or bullion has been increased 
 to 7 crores of rupees. This represents a saving in interest 
 at 4 per cent, of nearly 28 lakhs of rupees. The precious 
 metals needed for currency purposes have to be purchased 
 for value like any other commodity, and if coin could be 
 economized ^'^^ by extension of other forms of credit, the 
 necessity for enlarging the metallic currency with the growing 
 needs of trade and commerce would be partly at least counter- 
 acted, and this would be a very great benefit. 
 
 '■•' It haa been calculated that the average value of daily transactions in the 
 London clearing house is 20,000 millions sterling. Mr. Jevons estimated that if all this 
 business were transacted by the actual payment of coin, the weight to*be carried would 
 be 157 tons of gold requiring 80 horses to carry the metal. If in silver, the weight 
 would be more than 2,500 tons. The actual metallic coinage of England (in 1878) was 
 100 millions of gold, 15 millions worth of bullion in the bank of England, 15 millions 
 of bilver and li of bronze — total 131i millions sterling.
 
 289 
 
 IV. — Absence of Diversity of Occupations and Necessity 
 FOE encouraging General and Technical Education. 
 
 101. The next group of questions has reference to the 
 necessity for providing sufficient safe- 
 with%^SLroTt' guards to prevent the increase of popula. 
 population recapitn- tiou pressing on the land to such an extent 
 ^**^*^' as to cause a deterioration in the standard 
 
 of living of the masses. The principal dangers of the present 
 economic position in this respect have been described to be (1) 
 the absence of diversity of occupations and the crowding of 
 the population on a single resource, viz., agriculture ; (2) the 
 necessity, as population increases, for bringing under cultiva- 
 tion the poorer soils which are peculiarly liable to the effects 
 of droughts and yield a very precarious subsistence to the 
 cultivators ; (3) the large exports of agricultural produce to 
 foreign countries tending to impoverish the soil and diminish 
 its yield ; and (4) the lack of a spirit of enterprise, of tech- 
 nical knowledge, and of means among the agricultural classes 
 to repair the waste caused by the export of agricultural pro- 
 duce, by the adoption of improved methods of cultivation, or 
 by opening out new paths of industry with the aid of wealth 
 obtained in return for the produce exported. 
 
 I have in the last section examined the actual position 
 as regards the pressure of population on the means of sub- 
 sistence. The conclusions arrived at may be here briefly 
 recapitulated. During the last forty years there has been great 
 increase of production owing to (1) the extension of the area 
 of cultivation of food-crops; (2) the extension of the area 
 irrigated by large works constructed by Government, and by 
 small works, such as wells, constructed by the cultivators 
 at their own expense; (S) the extension of the area grown 
 with valuable commercial crops ; and (4) improvement in the 
 methods of cultivation in places where there is a fairly con- 
 stant remunerative market for the produce grown. Of this 
 increase of production a very large portion has been absorbed 
 in the mcrease of population which has taken place, and the 
 remainder in improving the standard of living of all classes. 
 The improvement that has taken place among the higher and 
 middle classes is evidenced by the higher and more costly 
 style of living which has undoubtedly come into vogue among 
 these classes. It is, however, the case of the landless labour- 
 ing classes that is always one for anxiety whenever there is 
 a large increase in population ; and, as regards these classes, 
 it has beeil shown that their condition has not in any way 
 deteriorated, but on the contrary has to some extent improved. 
 
 37
 
 290 
 
 All legal impediments in the way of these classes bettering their 
 condition have been removed; employment is procurable in 
 all normal seasons ; and an appreciable number of persons 
 belonging to these classes have been able to save money, 
 purchase landed property and rise in the social scale, thus 
 setting a stimulating example to the bulk of their brethren 
 who, owing to want of means, ability or opportunities, still 
 continue in the old state of degradation. The complaint that 
 one often hears in most places is that labourers are difficult 
 to get for the old customary rates of wages, and that it is 
 necessary either to pay them higher rates of grain wages or 
 larger allowances in the shape of perquisites to make them 
 work willingly or with zeal. This shows that a struggle is 
 going on to adjust the old customary rates of wages to the 
 new conditions under which there is increasing mobility of 
 labour. ^^ The signs of improvement in the condition of 
 these classes must, of course, be comparatively less marked, 
 but it is none the less certain. We have also seen to what 
 extent the complaint that the expansion of foreign trade has 
 destroyed the indigenous industries other than agriculture is 
 well-founded. The spinning and weaving industries have, 
 undoubtedly, suffered severely, the former having dwindled 
 to very small proportions indeed. The weaving industry has 
 not, however, suffered to the extent generally believed for 
 two reasons ; viz., first, the working population in the rural 
 tracts in the inland districts, where the cold in the winter 
 months is severer than elsewhere, still use the durable and 
 warm clothing woven out of country thread ; and secondly, 
 while, on the one hand, imported machine-made cloths have, 
 to a great extent, superseded country cloth used by the 
 higher and middle classes for male attire, there has been 
 considerable extension of demand for female colored cloths 
 of the finer varieties woven in the country owing to reduc- 
 
 '^ As regards the manner in which economic cnstoms are modified, Mr. Marshall 
 remarks : " To say that any arrangement is dne to custom is little more than to say that 
 we do not know its canse. I believe that very many economic customs could be traced, 
 if we only had knowledge enough, to the slow equilibration of measurable motives : 
 that even in such a country as India, no custom retains its hold long after the relative 
 positions of the motives of demand and supply have so changed, that the values, which 
 would bring them into stable equilibrium, are far removed from those which the custom 
 sanctions. Where economic conditions change but little in one generation, the relative 
 values of different things may keep very near what modern economists would call their 
 normal position, and yet appear scarcely to move at all : just as, if one looks only for a 
 short time at the hour-hand of a watch, it seems not to move. But if the preponder- 
 ance of economic motive is strong in one direction, the custom, even while retaining its 
 form, will change its substince and really give way." As regards the influence of 
 custom on prices of articles of genernl consumption, Mr. Marshall says, " After examining 
 in detail the prices of chief purchases made by the peasants in som«i parts of India, 
 I have come to the conclusion that custom has less to do with them than is the case 
 with the agi'icultural laborer in the south of England."
 
 291 
 
 tion in their price on account of the cheapness of imported 
 thread. As a set-off against the decadence of spinning in- 
 dustry, we have the outturn of the spinning mills, which is 
 daily increasing, and which bids fai]* to enable the country 
 to recover the ground lost under the stress of Manchester 
 competition. So far, however, as the spinning and weav- 
 ing classes are concerned, the extension of the mills will, of 
 course, accelerate their decline. The iron smelting industry 
 has nearly ceased, but this is due to the scarcity of fuel. The 
 cheapness of imported iron and other metals, and the gradual 
 introduction of metal vessels among classes of the population 
 which were formerly using earthen vessels have given 
 extended employment to the workers in metals. The artisan 
 classes — masons, carpenters, &c., — are well off and j5nd 
 employment at remunerative wages both on Government 
 aud Railway works, and in the construction of substantial 
 buildings, which are springing up in all parts of the country. 
 The native shipping industry has declined, but this simply 
 means that the old expensive modes of carriage by native craft 
 have been superseded by cheaper carriage by ocean steamers, 
 the producers of the export articles profiting by the differ- 
 ence in the cost. It is the reduction in the cost of freight that 
 has enabled the mill-manufactured yarns and cloths of Bombay 
 to enter into competition with Manchester for the markets of 
 China and Japan. New fields of employment have been opened 
 in connection with coffee, tea, cinchona and indigo industries, 
 cotton mills and pi-esses. The railways, roads and canals 
 which have come into existence afibrd increased employment 
 to the surplus population during the non-cultivation season 
 to a greater extent than was the case in the past. The 
 expansion of the tanning industry has specially benefited the 
 lowest classes of the population in particular places, the wages 
 given for tanning being higher than for other kinds of work, 
 as owing to religious prejudices the ordinary labourers do 
 not compete for employment on tanning works. I have 
 not alluded to the decay of the Indian art industries and 
 of the classes engaged in them. The proportion of the 
 population affected is numerically small, and though on other 
 grounds the decay of Indian art may be a matter for regret, 
 it can only be assigned a subordinate place in an enquiry 
 referring to the economic condition of the general population. 
 
 The increase of population, then, has not, so far, pressed on 
 the means of subsistence to such an extent as to cause a 
 deterioration in the standard of living of the population as a 
 whole, and this is conclusively shown by the fact that the
 
 292 
 
 prices of food-grains during recent normal years have not been 
 higher than the average prices of years prior to the famine of 
 1876-78, notwithstanding that in the intervening period there 
 has been a great fall in the value of silver. In this connection 
 it must be remembered that the tendency of increase of popula- 
 tion accompanied by a more than corresponding increase of 
 wealth is generally not to augment the share of wealth of the 
 different classes in a uniform ratio, but to improve the condi- 
 tion of such sections of the society as are able to profit by the 
 opportunities afforded by the new o^egime in a marked degree, 
 while benefiting in a less degree other sections of the com- 
 munity, and in some cases even rendering the condition 
 of the very lowest landless classes of the population harder 
 than before. The following illustration, in which the figures 
 assumed are entirely hypothetical, will show what is meant. 
 If the average income per head of the population were, 
 twenty years ago, Rs. 30 per annum, and if wealth has since 
 increased by 30 per cent, while the population has increased 
 by 15 per cent., the income per head of the population at 
 present would be a little less than Es. 34 per annum. The 
 income of all classes, however, would not have increased in 
 the ratio of 34 to 30, but that of the higher and more intelli- 
 gent classes would have increased in a greater ratio, while 
 that of the less intelligent and helpless classes in a smaller 
 ratio or even diminished. The peculiarly satisfactory feature 
 of the present position is that the condition of the lowest 
 classes has not in any way deteriorated, but, on the contrary, 
 in so far as these classes have been able to take advantage 
 of the opportunities for employment opened out to them, has 
 improved for three reasons, viz., the prices of food-grains, 
 which rose enormously between the years 1860 and 1870 
 owing to special causes, declined afterwards, while the money 
 wages which had risen at the same time remained steady 
 or even increased ; the prices of imported articles, chiefly 
 clothing and metals, declined ; and the abolition of slavery and 
 serfdom, and the discouragement by Government in adminis- 
 trative arrangements of all social rules and usages tending to 
 depress the condition of the lower classes have ensured to 
 these classes greater opportunities for employment and 
 greater security in the enjoyment of their earnings. ^-^ 
 
 '-' I have dwelt at greater length on the question of the pressure of population 
 during the last twenty years in a reply published by me in the Madras Mail to certain 
 criticisms which appeared in an article in the Calcutta Review of January 1893. I have 
 given in appendix VI.-D. (1) extracts from my reply omitting all matter of a contro- 
 vereial nature not possessing any but very temporary interest.
 
 298 
 
 102. We have further seen that production cannot go on 
 
 continually increasing as fast as the popu- 
 
 Progress of general ^^tion, uuless there is a continual improve- 
 
 education. '. . .,■,■,• • -^ i- ^^ 
 
 ment m the intelligence, spirit oi enter- 
 prise and habits of thrift of all classes, and that to secure 
 this end, it is of the utmost importance that education should 
 be diffused as widely as possible. It will therefore be inter- 
 esting to glance briefly at what has been done and what 
 remains to do in this direction. 
 
 I have printed as appendix VI. -D. (2) a brief account of 
 the progress of education during the last 20 years kindly 
 furnished me by Mr. S. Seshaiyar, Professor in the Kumba- 
 kdnam College. Considering the short period during which 
 educational measures have been at work, the advance made 
 has been astonishingly rapid. During the last 20 years the 
 number of collegiate institutions for higher education have 
 increased from 12 to 35, and the attendance of scholars from 
 385 to 3,200. The number of candidates who appeared for 
 the Bachelor of Arts degree examination in 1891 was 548 
 against 65 in 1871. The total number of persons who had 
 passed the examination since the Madras University was 
 established up to 1871 was only 197, but the number up to 
 1891 increased to 2,679. The number of persons who had 
 passed the First Examination in Arts was 852 up to 1871, 
 and 7,866 up to 1891. 
 
 In secondary education also there has been similar ad- 
 vance. The number of candidates who appeared for the 
 Matriculation examination has increased fi'om 1,358 in 1871 to 
 7,002 in 1891. It has been calculated that 75 per cent, of the 
 pupils who pass the Matriculation examination read for the 
 First Examination in Arts and that 90 per cent, of the pupils 
 who pass the latter read for the B.A. examination. The 
 number of pupils receiving secondary instruction in schools 
 was 32,000 in 1891. 
 
 Primary education has advanced still more rapidly. In 
 1871, there were 1,606 primary schools for boys registered 
 in the official returns with an attendance of 43,000 pupils. 
 In 1891 the number of primary schools registered was 
 21,000 with an attendance of 560,000. The figures for the 
 latter year include pupils in indigenous j9i*(x/ schools which 
 have been improved and brought under the inspection and 
 superintendence of the Educational Department subsequent 
 to 1871 ; but making allowance for this circumstance, the 
 progress iviade will still be seen to be very remarkable. 
 The number of candidates who appeared for the Primary
 
 294 
 
 school examination in'fl891 was 16,000, of whom 12,000 were 
 declared to have passed. The recent orders issued by Gov- 
 ernment making it obligatory on candidates for village offices 
 to pass this examination have given a great impetus to the 
 extension of primary education which will progress even 
 more rapidly than it has done hitherto. Night-schools have 
 been established in several places for the education of the 
 labouring classes. There were 802 such schools in 1892 with 
 an attendance of 14,771 pupils. Special measures are now 
 being taken for the instruction of Pariahs and other degraded 
 classes of the population. 
 
 Schools for the education of girls aided by Government 
 may be said to have almost come into existence since 1871. 
 In 1891 there were 1,021 schools with an attendance of 48,090 
 pupils. Including the girls attending boys' schools the total 
 number of girls under instruction |was 87,715. Female can- 
 didates appeared for the Matriculation examination of the 
 Madras University for the first time in 1877. Since then 
 314 candidates have been examined up to 1892, of whom 171 
 were declared to have passed, 34 in the first class. Of the 
 number passed, however, 26 were Native Christians, 57 East 
 Indians and 84 Europeans and 3 Parsees. 
 
 Great as has been the advance made since 1871 as com- 
 pared with the past, there is almost unlimited scope for 
 further progress, when it is remembered that education, in 
 however elementary a form, has touched the merest fringe 
 of the population, and that there is a dense mass beneath 
 which has yet to be brought under its influence. This has 
 been clearly shown by Dr. Duncan in his very interesting 
 report on public instruction for the year 1891-92. He 
 points out that out of every 1,000 boys between the ages of 
 5 and 9 years who ought to be under instruction, 230 or be- 
 tween one-fourth and one- fifth are receiving instruction, the 
 remaining three-fourths being allowed to grow up absolutely 
 illiterate. Again out of every 1,000 boys between the ages of 
 10 and 14 years who might be expected to be in the ' lower 
 secondary stage' as regards instruction, only 12 receive such 
 instruction. And out of 1,000 boys between the ages of 15 
 and 19 who might, if circumstances permitted, be expected to 
 be in the ' upper-secondary ' stage, only six reach that stan- 
 dard. Lastly, only 26 out of every 10,000 young men between 
 the ages of 20 and 24 enjoy the benefits of collegiate educa- 
 tion. Dr. Duncan's remarks in regard to higher education 
 are specially worth quoting, as considerable misapprehension 
 prevails on the question of collegiate instruction having over-
 
 295 
 
 passed its due limits. He observes : " These figures show 
 how little reason there is for the not uncommon opinion that 
 collegiate education is advancing too rapidly and extending 
 itself too widely. The growing cost of living, especially in 
 large towns, the comparatively poor prospects of a successful 
 career after graduating, owing to the very keen competition 
 that exists for employment in almost all the branches of the 
 public or the private service — these and other similiar con- 
 siderations will tend to deter all except young men favorably 
 circumstanced as regards means or possessed of exceptionally 
 good natural ability, from entering on a collegiate course of 
 instruction." The results of the higher education too, so far 
 as they have gone, have been, on the whole, most beneficial. 
 There has been a distinct improvement in both the public and 
 private morality of all those who have come under its influence. 
 Many unreasonable prejudices which stand in the way of the 
 progress of the country are being silently transformed into 
 practices more in consonance with the spirit of the present 
 times and less injurious to the welfare of the community, 
 and the way is being gradually prepared for still greater 
 social changes. Brahmin young men, who would never have 
 dreamed of working in a dissecting* room in a medical 
 laboratory or of crossing the sea to serve in Burma, 
 have little scruple now in taking up work of either kind. 
 These results are entirely due to the forces which have 
 been set in motion by the British Government, among which 
 the system of education introduced by it is undoubtedly 
 the most potent; and as the Government is precluded by 
 differences of race and religion from actively interfering 
 to help on or regulate these changes, it is all the more incum- 
 bent on it to afford indirect encouragement by concentra- 
 ting all its efforts for the advance of education. In all poor 
 countries the persons who first come under the influence of 
 education are not the scions of the aristocracy, but scholars ^^® 
 sprung from the poorer classes, who from religious motives 
 devote themselves to the pursuit of knowledge ; and this was 
 the case in England itself 500 years ago, when the English 
 universities swarmed with thousands of poor scholars who 
 
 '•^ In Scotland even in the present day a considerable portion of the scholars edn- 
 cated in the universities belong to the labouring class. Sir Lyon Playfair in his essays 
 on subjects of Social Welfare remarks : " It is believed that 500 working men or sons of 
 working men are in attendance in these Scottish Universities. Many that I have per- 
 sonally known have worked hard during the summer as ploughmen, fishermen, masons 
 carpenters — in one or two cases which I happen to know as gillies to young English 
 University Students during grouse shooting — in order that they might have enough to 
 pay their moderate fees and live on porridge and milk during the winter sessions of 
 the universities."
 
 296 
 
 were fed at alms-houses or who literally begged their bread 
 from door to door. The education of these poor scholars was 
 provided out of the income of religious endowments founded 
 both by sovereigns and private individuals. The dissociation 
 of education from religion in this country under the British 
 Government has rendered this resource unavailable, and un- 
 less the State supports higher education in a liberal manner 
 the progress of the country will be seriously arrested. The 
 outlay on higher education will prove in the long run to 
 be a most profitable investment even from a commercial 
 point of view. As observed by Mr. Marshall : " The 
 wisdom of expending public and private funds on educa- 
 tion is not to be measured by its direct fruits alone. It will 
 be profitable as a mere investment to give the masses of the 
 people much greater opportunities than they can generally 
 avail themselves of. For by this, many who would have 
 died unknown get the start that is required to bring out their 
 latent abilities. And the economical value of one great indus- 
 trial genius is sufficient to cover the expenses of the educa- 
 tion of a whole town. One new idea, such as Bessemer's chief 
 invention, adds as much to England's productive power as the 
 labour of a hundred thousand men. Less direct, but not less 
 in importance is the aid given to production by such medical 
 discoveries as those of Jenner or Pasteur which increase our 
 health and working power, and again by scientific work, such 
 as that of mathematics or biology, even though many genera- 
 tions may pass away before it bears visible fruit in greater 
 material well-being. All that is spent during many years 
 in opening the means of higher education to the masses would 
 be well paid for, if it called out one more Newton or Darwin, 
 Shakespeare or Beethoven." It may be that the chances of the 
 appearance of such great benefactors of the human race who 
 widen the bounds of knowledge are too remote to justify 
 a large outlay on higher education in a poor country, but the 
 urgent necessity that exists for effecting reforms in practices 
 which retard the material well-being of the nation, and the 
 extreme improbability of the occurrence in this country of any 
 religious upheaval which, under favourable conditions, often 
 has the effect of imbuing whole peoples with a new spirit 
 and by a sudden impulse of lifting them high in the scale of 
 civilization, render the rapid advance of secular education 
 almost the only available resource for social regeneration and 
 progress ; and no amount of money expended by the State 
 would be ill- spent in perfecting this instrument. This being so, 
 there need be no fear that higher education is being pushed
 
 297 
 
 on too rapiclly, for, as observed by Dr. Duncan, the growing 
 cost of living and the difficulty of obtaining entrance into the 
 liberal professions will, of themselves, fix the saturation point 
 beyond which a literary education will not be absorbed in 
 the existing circumstances of the country. These consider- 
 ations apply with even greater force in the case of female edu- 
 cation, which is still in its infancy, for whereas 20 per cent, 
 of boys between the ages of 5 and 9 years are under instruc- 
 tion, only 4 per cent, of girls of the same ages are taught even 
 the three R's. The enormous disproportion in the advance 
 in education of Indian men and women is recognised on all 
 hands to be one of the most serious dfficulties in the way of 
 social progress. 
 
 While higher and secondary education are required for 
 the higher and the middle classes who must lead industrial 
 movements and promote social progress, the salvation of the 
 lower classes lies in the diffusion of elementary education. 
 Owing to the bulk of the land in the country being held 
 in small farms by a poor peasantry, the adoption of im- 
 proved methods of cultivation with a view to raise food for 
 a growing population will be possible only if there is a general 
 quickening of intelligence among them sufficient to overcome 
 the spirit of routine and the tenacious hold which traditional 
 practices have over a proverbially conservative class. More- 
 over, the only effectual check to overpopulation is the im- 
 provement of the standard of comfort by the multiplication 
 of innocuous secondary wants and diffusion of a feeling of 
 self-respect among the masses which prevents this standard 
 of comfort being lowered — a result which can be brought about 
 by education alone. Elementary instruction must, therefore, 
 be pushed on as fast as funds and teachers can be provided. It 
 would doubtless be a mistake to adopt any scheme of compul- 
 sory State education, as is sometimes advocated, because the 
 margin of the earnings of a poor family in this country over 
 and above what is required for mere subsistence is so small 
 that it cannot afford to dispense with the wages of labour 
 earned by the juvenile members of the family. In fact, no com- 
 pulsory measures undertaken by the Sta,te for the benefit of a 
 large population can be successful unless a very large majority 
 of the population acquiesce in and feel the necessity for such 
 measures, and the aid of the State is invoked for the pur- 
 pose of enforcing the performance by recusant individuals of 
 duties recognised by public opinion. But there cannot be the 
 slightest doubt that the extension of elementary education 
 should be Recognized as being of prime necessity in the existing 
 situation, and as an essential pre-requisite for carrying out 
 
 38
 
 298 
 
 improvements of every kind, and that its continued rapid 
 advance should be provided for. 
 
 Another most pleasing feature in connection with the pro- 
 gress of education is the extent to which the taste for field 
 sports and manly exercises is spreading among the school- 
 going population and the youth of the country. The advance 
 made in this direction during the last ten years has been re- 
 markable and is calculated to dispel the fears which were 
 once entertained in regard to the danger of the mental strain 
 caused by the new exotic education resulting in stunted 
 growth and deteriorated physique. 
 
 103. Agricultural education is, of course, of the greatest 
 importance in this country, where 90 per 
 
 Agricmtttral education. ^, p., ,,. ••,i -r- 
 
 cent. 01 the population is either engaged m 
 agriculture or in subsidiary operations connected with this 
 industry, and this question has much occupied the attention of 
 the Madras Government since 1871, when the Saidapet Agri- 
 cultural Farm and School were established. There cannot 
 be the slightest doubt as to the duties and responsibi- 
 lities of Government in the direction of improving agri- 
 cultural methods both on account of the intimate association 
 of it with land, the revenue derived from which forms the 
 mainstay of Indian finance, and because the bulk of the land 
 is held in small farms by peasant proprietors who are too 
 poor and dispirited to depart from established routine and 
 adopt new processes without aid and encouragement from 
 Government. The results from the point of view of improved 
 processes and scientific agriculture have not perhaps been 
 commensurate with the efforts made, though there is not 
 much reason for disappointment when the economic condi- 
 tions applicable to the case are taken into account. In all 
 countries improvements in agriculture are made slowly and 
 by insensible degrees, and as Mr. Thorold Rogers has pointed 
 out, even in England it took a hundred years to naturalize 
 turnip culture, and nearly as long to diffuse the principle of 
 artificial selection in cattle. The conditions under which 
 agriculture has to be practised in this country difier so totally 
 from those of England that it can hardly be expected that 
 the development of this industry will follow the same lines 
 in the two countries. The two most important respects in 
 which the conditions differ are — first, that whereas in England 
 one of the main problems of agriculture is getting rid of 
 excessive moisture, in this country the difficulty lies in obtain- 
 ing and retaining moisture for the growth of ..crops, the 
 former being, of course, much more capable of regulation and 
 much less dependent upon fortuitous circumstances not
 
 299 
 
 modifiable by human action than the latter ; and, secondly, 
 that the breeding and fattening of cattle in England for 
 meat make it remunerative to retain the greater portion 
 of cultivable lands for purposes of pasture, thereby con- 
 tracting the area available for being put under corn crops, 
 providing cattle manure for these crops, and enabling the 
 farmer to diversify corn crops with restorative crops which are 
 useful as food for cattle — conditions favorable to intensive 
 farming whicb, owing to the poverty of the cultivators and re- 
 ligious prohibition as regards the consumption of cattle meat, 
 are absent in this country. ^'^^ Hitherto the increased pro- 
 duction required to meet increase of population has been met 
 by extension of cultivation of lands of all except the poorest 
 descriptions, by the extension of large irrigation works con- 
 structed by Government and of small works, such as wells, 
 constructed by the ryots themselves, and by the stimulua 
 given to production in backward and hitherto inaccessible 
 tracts by the extension of communication and the cheapening 
 of the cost of carriage. As these resources are becoming, to a 
 great extent, exhausted, the two dangers now apprehended 
 are first, the necessity to bring under cultivation the poorer 
 classes of soil peculiarly liable to the effects of droughts, and 
 secondly, the impoverishment of the soil, owing to the grow- 
 ing exports of agricultural produce — -chiefly oil-seeds. The 
 first danger is, to some extent, guarded against by imposing 
 pretty high assessments on lands of the lowest classes and 
 by enclosing poor soils for fuel and fodder reserves and thus 
 preventing their being taken up for cultivation. These mea- 
 sures have, however, to be adopted very cautiously to prevent 
 hardship to the agricultural classes by unduly enhancing the 
 assessment of holdings containing poor lands and by depriving 
 them of grazing grounds for cattle. As regards deterioration 
 of the soil, the opinions of scientific experts who have examined 
 
 ^" I have in my reply to the article in the Calcutta Review, extracts from which 
 axe printed as appendix VI. ~D. (1), alluded briefly to the circumstances which favored the 
 consolidation and enclosure of farms and the adoption of intensive farming in England. 
 Sometimes violent measures are suggested with a view to bring about consolidation 
 of farms and improved cultivation, but all such measures are calculated to strike at 
 the I'oot of security of property which is the first condition of agricultural improve- 
 ment, unless the Government itself undertakes the functions of a landlord — functiona 
 which it can never properly discharge. With reference to a similar proposal, Mr. Thorold 
 Rogers puts the evils of State landlordism in a clear light : " The cultivator of the soil 
 would have exchanged a landlord, who is, after all, a human being, with sympathy and 
 consideration, at least at times, with some desire to live at peace and good-wiU among' 
 his neighbours, for a Government oflBce the servants of which, by a very natural im- 
 pulse, would manipulate the whole estate by a set of hard inelastic rules. They would, 
 by the very nature of their duties, be unaffected by all sympathetic influences. 
 Their first object,would be to earn the interest on the piirchase-money, and to insist on 
 its punctual payment, come what would. The business of the oflice would be enormous 
 and prodigiously costly."
 
 300 
 
 the subject, as already stated, go to show that there is no 
 proof as jet of any deterioration having taken place, but that 
 there is reason to apprehend such deterioration in the future 
 should the exports of agricultural produce — chiefly seeds — 
 increase at the rate they have, and manurial substances, such 
 as bones, should continue to be exported in increasing quanti- 
 ties. The exports of agricultural produce, however, bear now 
 but a small proportion to the total agricultural production 
 of the country, and bones have been ascertained not to be 
 exported to any appreciable extent from this presidency. 
 Nevertheless, the dangers referred to should be provided 
 against, and this can be done only by the diffusion of 
 knowledge of improved agricultural principles and practices 
 among the ryots and by the establishment of agricultural 
 banks already referred to, which will enable the ryots to adopt 
 agricultural improvements when the conditions of the market 
 admit of their adoption with advantage. The efforts of agri- 
 cultural officers for bringing about agricultural improvement 
 were not successful at the outset, because there was a disposi- 
 tion among them to condemn native methods of cultivation 
 wholesale without stopping to inquire whether the conditions 
 of the case admitted of European methods being adopted. 
 The failure of the Saiddpet Farm itself to yield profitable 
 results has since produced a re-action, and the tendency has 
 perhaps been to go to the other extreme and hold that the 
 ryot has nothing to learn in this direction. The fact is that 
 in this as in other things the ryot is neither so stupid as 
 not to be alive to his interests when the desirability of adopt- 
 ing an improvement is demonstrated to him in the only 
 way in which he can understand, viz., by showing that it 
 will pay under the conditions under which he has to work ; 
 nor is he so enterprising and watchful as to dispense with 
 skilled assistance and guidance. For the purpose of furnish- 
 ing him with this assistance and guidance, agricultural ex- 
 periments have to be tried under as diverse conditions as 
 possible in a great many parts of the country when the 
 requisite agency for conducting the experiments can be pro- 
 vided. The Government Agricultural College should be able 
 to provide the necessary subordinate agency which should be 
 made to work under local committees, and the co-ordination 
 and tabulation of results obtained should be conducted under 
 the advice and superintendence of a skilled scientific expert 
 trained in England. To attain this object, the Agricultural 
 Committee appointed by Lord Connemara's government sug- 
 gested the establishment of agricultural schools £fnd farms in 
 halfa dozen stations to start with, but though three years have
 
 301 
 
 since elapsed, no action has as yet been taken on the commit- 
 tee's suggestions, because the Government of India has taken 
 up the question and has not been able to arrive at any final 
 decision regarding it. The matter, however, seems to be 
 entirely one for the local Government to deal with, and it is 
 undesirable that further delay should be permitted in taking 
 action in the matter. It would not, of course, do to look for 
 any immediate visible results from the establishment of these 
 schools, but they would undoubtedly be the means of diffusing 
 knowledge which will render cultivation, according to exist- 
 ing methods, more careful, thereby increasing the produce 
 by almost insensible increments and prepare the way for the 
 introduction of new methods when the time is ripe for it. 
 
 104. Some attention has been paid by Government of 
 ^ ^ . , ^ late years to the promotion of technical 
 
 Technical education. i , • • i t ■ i • i t. 
 
 education m arts and industries though in 
 this, as in the case of agricultural education, the results at- 
 tained have as yet been small. Leaving out of account col- 
 leges and schools for law, medicine and engineering, the 
 principal institutions aided by Government giving instruc- 
 tion in arts and industries are the School of Arts at Madras 
 with an attendance of 426 pupils, Chengalvaraya JNaicker's 
 Commercial School at Madras with 123 pupils, and 18 other 
 industrial schools with an attendance of 997 pupils not 
 including special classes attached to a few schools aided by 
 Government. There are 91 teachers in these institutions, 
 of whom 11 are men educated in Europe, America or 
 Australia. In 1891, 80 pupils passed the technical examina- 
 tions in industries. The articles manufactured in these 
 institutions during 1891 have been valued at Es. 40,826 
 and the profits realized at Rs. 10,184. The Victoria 
 Technical Institute has been organized for the promotion 
 of technical education, and its secretary, Mr. John Adam, 
 has, after inspecting a considerable number of technical 
 institutions in England, recently written a memorandum 
 containing suggestions for the development of education in 
 arts and industries. His main proposals are (1) that system- 
 atic attempts should be made by Government to collect 
 information about industries ; (2) that an Upper Secondary 
 technical school should be established at Madras ; (3) that 
 evening and morning classes for the instruction of artizans 
 should be instituted ; (4) that peripatetic lecturers should 
 be employed to lecture and exhibit products, processes and 
 tools of manufactures; and (5) that Inspectors should be 
 appointed to inspect and advise mofussil institutions. Mr. 
 Havell, the Superintendent of the School of Arts, in an article
 
 302 
 
 contributed by him to the Industrial Review, has pointed out 
 that the only effectual means of fostering technical educa- 
 tion is to take the industries which exist and endeavour to 
 improve them or lead them into new developments. This is a 
 work which requires patient and prolonged investigation, and 
 for carrying it out the requisite staff should be provided by 
 Government, as the funds of the Victoria Technical Institute 
 are altogether insufficient for such an undertaking. It is of 
 course futile to expect that by establishing technical institu- 
 tions new industries, which will absorb a considerable amount 
 of labour now devoted to agriculture, can be brought at 
 once into existence, thereby lessening the pressure on 
 agriculture and providing employment unaffected by the 
 vicissitudes of agricultural seasons. The artizans and handi- 
 craftsmen have to depend upon the local market for the sale 
 of their wares, and if a succession of bad seasons brings 
 distress on the agriculturists who are their customers, they 
 themselves suffer along with the latter.^'-® The best mode 
 in which special industries can be encouraged is to introduce 
 cottage industries which can be carried on by agricultural 
 peasants or their womenfolk during the non-cultivation season 
 in places where there are special facilities for carrying on 
 such industries and to make the articles produced as widely 
 known as possible so as to create a demand for them. All 
 this requires time and expenditure of money which would, 
 however, in the long run, be repaid manifold. As regards the 
 introduction of improved tools, Mr. Havell remarks that the 
 native workman, is not too slow in adopting superior tools or 
 simple and effective mechanical contrivances when they are 
 placed before him. In large towns carpenters and brass- 
 smiths are found using English or American lathes worked 
 by a treadle, and imported tools for turning the thread of 
 screws, drawing wire, &q., are commonly used by goldsmiths 
 and brassmiths. Mr. Havell observes that even in the re- 
 motest villages carpenters use English saws, planes, chisels, 
 &c., and he suggests the employment of a few commercial 
 travellers to demonstrate the advantages of using such tools 
 to the artizans in the mofussil. It is desirable that some 
 decisive action should be taken by Government in the direc- 
 tions pointed out by the gentlemen above named, or that the 
 Victoria Technical Institute should be sufficiently subsidized 
 
 '** The primitive handicraftsman, obsei'ves Mr. Marshall, " was far from enjoying 
 unbroken prosperity ; war and scarcity were constantly pressing on him and his neigh- 
 bom-s hindering his work and stopping their demand for his wares. But, he was inclined 
 to take good and evil fortune, like sunshine and rain, as things beyond his control : his 
 iuxgers worked on, but his brain was seldom weary."
 
 303 
 
 so as to enable it to undertake this duty. The Government 
 has from time to time employed specialists to conduct inves- 
 tigations in particular directions for developing the resources 
 of the country, e.g., in connection with the investigation of 
 mineral resources, sericulture, curing of tobacco, &c., but the 
 investigations made have been on too small a scale to lead to 
 any practical results. The two chief diflficulties in the way of 
 such enquiries are to ensure that adequate return is obtained 
 for the money expended and that the officers employed 
 show good work during the time they are under employment. 
 These difficulties are very real, but as no particular time 
 can be fixed for showing adequate results, the expenditure 
 must be incurred in the belief that it will sooner or later be 
 amply repaid. The mineral resources of the presidency, more 
 especially as regards iron and coal, are stated by experts to be 
 of sufficient importance to justify the institution of a special 
 department of mines and minerals for the systematic inves- 
 tigation of these resources. The Salem District, for instance, 
 has long been known to contain some of the richest iron ores 
 in the world. The tanning industry has grown in import- 
 ance in this Presidency, and investigations as to whether 
 methods of tanning superior to those now in use might be 
 profitably introduced and could be suggested to the manufac- 
 turers might be undertaken. It is believed that the intro- 
 duction of improved methods of fish-curing which is a very 
 important industry on the West Coast might lead to further 
 development of this industry which is in the hands of the 
 poorest classes who are without the knowledge and the means 
 to improve the processes now employed. The establishment 
 of fish-curing yards under the supervision of Government 
 and the supply of salt at cost price furnish Government 
 officers with the necessary opportunities and powers of control 
 for this purpose. Experiments in cattle-breeding can be tried 
 by the Forest Department in connection with the fuel a,nd 
 fodder reserves maintained by it. In these various ways 
 there is considerable scope for Government paving the way by 
 precept and example for the development of industries. All 
 these experiments will doubtless cost money, but the State 
 must, from an educative point of view, be prepared to expend 
 and even waste money, within certain limits, in these direc- 
 tions, without looking for an immediate return for the money 
 thus expended, the local Government being allowed to do 
 what it thinks best subject to the conditions laid down as to 
 the limits of expenditure. For instance, the revenue derived 
 by the State :?rom land including local cesses exceeds 5 crores 
 of rupees, and the expenditure of 1 per cent, of this revenue,
 
 304 
 
 viz., 5 lakhs of rupees for tlie purpose of agricultural improve- 
 ment cannot be considered extravagant, and the whole of this 
 amount will not be required at the outset. Again, during the 
 last fifteen years, the revenue from excise on country spirits 
 and drugs has risen by nearly 60 lakhs of rupees, and this 
 revenue is drawn from the poorest classes of the population. 
 The object in maintaining the excise duty is not so much a 
 fiscal as a moral one. In these circumstances it is right and 
 proper that a fixed percentage of this revenue should be de- 
 voted to the mental, moral and physical improvement of the 
 classes who contribute it and be expended in the promotion 
 of elementary and technical education and the improvement 
 of sanitation. So far as education is concerned, the expen- 
 diture from Provincial funds has increased within the last five 
 years from 12 to 18 lakhs of rupees and this is so far satis- 
 factory. But in view of the rapid increase of population and 
 the necessity for improving the intelligence of the people and 
 the standard of comfort amongst them, the further advance 
 of education should be recognised as pressing and provided 
 for in the manner above pointed out. 
 
 105. A question that is frequently discussed in connection 
 Encouragement of in- ^ith the encouragemcnt of diversity of 
 dustries by the imposi- occupatious is tlic iostcring of mauufac- 
 tion of protective duties. ^^^^.-^^^ industries by the imposition of pro- 
 tective duties. This measure has often been recommended 
 more especially in connection with the depression of the hand- 
 loom industry which has seriously suffered by the competition 
 to which for several years it has been exposed from the 
 machine-made goods of Manchester. I do not wish to enter 
 into any elaborate discussion regarding this question, but will 
 briefly state whether, and to what extent, the arguments usu- 
 ally advanced in favour of a policy of protection are applicable 
 to the circumstances of this country. It is acknowledged on 
 all hands that from the point of view of indi^^dual consumers, 
 protective duties, if they are to serve their intended object, 
 must enhance the cost of the protected product to such con- 
 sumers, but it is contended that it may be to the interest 
 of a nation to incur this sacrifice temporarily with a view to 
 enable a struggling industry to establish itself on a firm basis, 
 and that when this has been accomplished, the artificial sup- 
 port afforded can and should be withdrawn.. The sacrifices 
 incurred during the period referred to would, in fact, be tanta- 
 mount to an outlay on an industrial undertaking made by the 
 nation, for which an adequate return would be received in due 
 time. Among other arguments for protection, the most cogent,
 
 305 
 
 which alone need be considered here, is the desirability — nay 
 necessity — for maintaining in the interests of the well-being of 
 the nation, a due balance between agricultural and manufac- 
 turing industries. This necessity applies to both agricultural 
 and manufacturing countries — agricultural countries, because, 
 agriculture being mainly dependent upon the seasons is in its 
 nature precarious and dooms the countries to a low economic 
 position, and because exports of agricultural produce to 
 foreign countries tend to impoverish the soils in which they 
 are grown ; and manufacturing countries, because, it is danger- 
 ous for any country to rely entirely on foreign sources for 
 food-supplies which might fail in times of war. From a mere 
 theoretical point of view, the validity of the first argument 
 must be admitted, but the case is entirely an hypothetical 
 one, which cannot be realized in practice. No government 
 will be able to determine in any particular case in which 
 protection is demanded whether the conditions laid down 
 have been satisfied, and if it is a case in which the eventual 
 success of the industry is beyond all reasonable doubt, it 
 will either be undertaken by private individuals without 
 the aid of protection, or, if there is not sufficient private 
 enterprize for the purpose, the government itself should 
 pioneer the industry and lead the way. The only way to 
 determine whether the industry will succeed is actually to 
 carry it on without the aid of protection. Moreover, when 
 once protective duties are imposed, it would be extremely 
 difficult to take them off, or know when to take them off, 
 because, the withdrawal must cause suffering to the protected 
 classes by destroying that portion of the industry brought 
 into existence which could not be carried on without protection, 
 and by diminishing the profits derivable from the remainder. 
 The harm done by inducements held out to capital and labour 
 to flow into other than their natural channels would also be 
 considerable, though not easily calculable. In this country, 
 if a protective policy were adopted, it is the influential classes 
 that would benefit by it, and the industries carried on by the 
 less influential classes, who have not the means to make their 
 voices heard, would suffer. Taking the depressed hand-loom 
 industry already referred to, it would be wrong to induce 
 people to cling to a doomed industry or occupation and to 
 bring up their children in it, though in view of the sufferings 
 undergone by them it might be. legitimate and proper for gov- 
 ernment to give them special aid and enable them to betake 
 themselves to more profitable occupations. Moreover, the 
 imposition of protective duties, by calling into existence an 
 
 39
 
 306 
 
 increased number of factories and mills within tlie country, 
 will instead of protecting the handloom weavers precipitate 
 their decline and increase their sufferings. Ordinarily when 
 human labour is displaced by machinery, there ensues con- 
 siderable impoverishment and suffering to the labourers 
 employed in the industry, but as machinery comes into use 
 by slow degrees, there is generally time for the labourers to 
 adapt themselves to the new conditions until the impetus 
 given to increased production by the introduction of labour- 
 saving appliances eventually gives employment to the dis- 
 placed labour. While, on the one hand, it would be wrong 
 in the general interests of the community to prevent the 
 introduction of machinery and other agents tending to 
 increase the efficiency of production, it would, on the other 
 hand, be cruel to accelerate the decline of the labouring 
 classes and tax them indirectly at the same time by means of 
 protective duties. 
 
 Turning to the argument, based on the necessity for main- 
 taining a due balance between agricultural and manufactur- 
 ing industries, it is doubtless true that purely agricultural 
 countries are generally found to be in a low economic position, 
 but the only way in which such countries can be eco- 
 nomically raised is by giving an opening for and increasing- 
 foreign trade ; and protective duties by diminishing that 
 trade would hinder and not help their progress, the pro- 
 fessed object of protective duties being to diminish imports 
 and consequently exports also, as all imports must in the long 
 run be paid for by exports. It was pointed out by Mr. Mill 
 forty-five years ago in his work on Political Economy, that 
 the expansion of foreign trade was the only means by which a 
 backward country like India could be economically elevated. 
 He observed that it was the deficiency of town population 
 which limited the productiveness of the industry of this country 
 in which agriculture was conducted entirely on a system of 
 small holdings. There was a considerable amount of combi- 
 nation of labour, but on a limited scale, and village institutions 
 and customs which were the real frame-work of society made 
 provision for joint action in cases in which it was seen to be 
 necessary ; or when they failed to do so, the government, when 
 tolerably well administered, stepped in, and by an outlay from 
 the revenue executed by combined labour the tanks, embank- 
 ments and works of irrigation which were indispensable. The 
 implements and processes of agriculture were so rude that the 
 produce of the soil, in spite of great natural fertility, was 
 miserably small. Mr. Mill was, at the same time, of opinion
 
 307 
 
 that the land might be made to yield food in abundance for 
 many more than the present number of inhabitants without 
 departing from the system of small holdings ; but to this the 
 stimulus was wanting which a large town population con- 
 nected with the rural districts by easy and inexpensive means 
 of communication would afford. That town population did not 
 grow up, because the few wants and unaspiring spirit of the 
 cultivators, joined, until lately, with great insecurity of pro- 
 perty from military and fiscal rapacity, prevented them from 
 attempting to become consumers of town produce. In these 
 circumstances, Mr. Mill considered that the best chance of an 
 early development of the productive resources of India con- 
 sisted in the rapid growth of the export of its agricultural 
 produce, cotton, indigo, sugar, coffee, &c., to the markets 
 of Europe. The producers of these articles would be con- 
 sumers of food supplied by their fellow-agriculturists in 
 this country ; and the market thus opened for surplus-food 
 would, accompanied by good government, raise up by degrees 
 extended wants and desires towards European commodities 
 or towards things which would require for their production 
 in this country a larger manufacturing population. 
 
 Since Mr. Mill wrote, it is exactly by means of the 
 expansion of foreign trade that the country has made the pro- 
 gress it has made ; that communications have been and are 
 being developed ;* that internal trade has been fostered, and a 
 re- arrangement of industries with reference to the natural 
 advantages and productive resources of the several localities is 
 being effected ; that factory industries are being brought into 
 existence ; that the standard of living of the various classes 
 has improved ; and that these classes have been enabled to 
 benefit to some extent by the example, skill, and enterprise 
 of European nations and the cheap capital furnished by 
 them. If it be said that factory industries have as yet been 
 introduced on a limited scale, the answer is that the influences 
 of foreign trade have hardly had thirty years' time to work, 
 and that it would be distinctly mischievous to adopt any 
 measures which would retard the rate of its expansion and 
 prevent the only chance the country has of having estab- 
 lished within it industries carried on under modern condi- 
 tions and worked on an economical basis. As regards the 
 argument that the soils of the country are being impover- 
 ished, I have already pointed out that the evil has not been 
 as yet felt to an appreciable degree, that the extension of 
 foreign denjand for agricultural produce is the only means 
 available for the introduction of improved methods of cultiva."^
 
 308 
 
 tion, because it furnishes the incentive for the adoption of 
 such improved methods and the means to adopt them, the 
 former by the necessity it imposes on the people for keeping 
 up the fertility of the soil, and the latter by the additional 
 value received for the produce exported. It is with a view 
 to enable the cultivators to take advantage of the oppor- 
 tunities and openings presented by foreign trade that the 
 diffusion of education — general and technical — has to be pro- 
 vided for by the State. From the point of view of the interests 
 of the country, a policy of protection would, therefore, be 
 injurious. The above remarks refer, of course, to a policy 
 of protection as such and does not apply to duties imposed 
 for purposes of revenue. The cotton duties which were 
 repealed in 1878 and 1882 belonged to the latter class. The 
 duties were only 5 per cent, on the value of the articles ; 
 and a special investigation made as to the character of the 
 duties showed that they operated in a protective manner to a 
 small extent on an insignificant portion of thft trade affected. 
 From the point of view of the interests of India they were far 
 less injurious than the salt duties or the export duties, the 
 former of which were enhanced soon after the cotton duties 
 were removed,'^^ 
 
 V. — Costliness of Justice. • 
 
 106. Another evil which is frequently complained of as 
 
 tending to the impoverishment of the 
 
 The maciiiDery pro- agricultural classcs is the costliness of 
 
 vided for the decision t , • . • . i j_ • . p ii ^ i 
 
 of petty litigation. litigatiou, the uuccrtamty or the law, and 
 
 the insufl&ciency of the judicial machi- 
 nery. There seems to be a pretty general impression among 
 those who have given attention to the working of the courts 
 that, while on the one hand the machinery provided for the 
 settlement of petty litigation is much more costly and compli- 
 cated than is necessary or desirable, that dealing with the 
 more important litigation is weak both in numbers and 
 quality. Out of a total number of about 260,000 suits for 
 
 '2' Even the German economists who have laid so much emphasis on the necessity for 
 securing many-sided development of the industries of a nation by means of protective 
 duties recognise that a purely agricultural country like India should begin with free trade, 
 stimulating and improving its agriculture by intercourse with richer and more cultivated 
 nations, importing foreign manufactm'es and exporting raw produce. On the other hand, 
 uncompromising free trade economists like Mr. Fawcett admit that in the choice of 
 modes of raising revenue a government cannot be guided solely by economic considerations 
 and duties operating protectively may sometimes have to be tolerated as the least objectioui 
 able of the niodes available of raising revenue required for purposes of government,
 
 309 
 
 claims valued at about 4 crores of rupees, 58,000 petty suits 
 are disposed of by the village munsifs and 92,000 small cause 
 suits by the district munsifs. Of the latter, 20,000 suits are 
 for personal claims of value not exceeding Rs. 10 ; 23,000 for 
 claims of values above Rs. 10, and not exceeding Rs. 20 ; and 
 41,000 for claims of values ranging between Rs. 20 and Rs. 
 50 ; the total number of suits for claims of values not exceed- 
 ing Rs. 50 being thus 84,000 or 92 per cent, of the total 
 number of small cause suits instituted in the courts of district 
 munsifs. The cost incurred by both plaintiifs and defendants 
 in suits of this kind is out of all proportion to the value of the 
 claims, and the successful litigant cannot recover under pro- 
 cess of court a considerable portion of the expenses actually 
 incurred by him. I have printed as appendix VI.-E. a state- 
 ment prepared by a judicial officer who has had experience 
 of litigation in the Tanjore, Trichinopoly and Tinnevelly dis- 
 tricts, where the courts are numerous and the distances to 
 be travelled by suitors and witnesses from their homes to get 
 to the courts are not very great. From this statement, it will 
 appear that, at a moderate computation, the cost incurred by 
 a litigant for enforcing a claim of value of Rs. 50 through all 
 its stages in the original court is Rs. 34, out of which he 
 cannot recover Rs. 12. As the value of the claim rises, the 
 cost incurred bears a more reasonable proportion to it, but it 
 is obvious that where the value of the claim is only Rs. 10 
 or Rs. 20, the irrecoverable portion of the costs must 
 often exceed such value, and this is one of the reasons which 
 make it impossible for the poor peasantry to obtain small 
 loans at anything like reasonable rates of interest, even 
 when the security offered is good and sufficient. ™ Lord 
 Kimberley, Secretary of State for India, has in his despatch 
 on the proposals for the establishment of agricultural banks 
 already referred to, remarked that " notwithstanding the 
 immense improvement which has of late years been effected 
 in the efficiency and integrity of the administration of civil 
 justice generally, much remains to be done towards making 
 it cheap and speedy. Everything which adds to the expense, 
 delay and difficulty of recovering just debts increases the price 
 at which the money-lender gives his help to the land-owner." 
 Some steps have already been taken in this presidency in the 
 direction pointed out by Lord Kimberley by the passing of the 
 Madras Village Courts' Act I of 1889, under which the pecu- 
 
 "■' It is in view of the cost of recovei-ing by resort to litigation money lent, it is 
 generally stipulated in bonds that the loan shall hear a higher rate of interest fron\ 
 the date on which default is made in repayment.
 
 310 
 
 niary limit of jurisdiction of village munsifs lias been raised 
 from Rs. 10 to Rs. 20, and power has been taken to constitute 
 benches of village courts with the village munsifs as presidents. 
 Rules have recently been framed for the preparation of lists 
 of persons who are liable at the election of the suitors to 
 serve on the benches, the qualifications prescribed for such 
 persons being that they should pay land revenue or income- 
 tax of not less than Rs. 10 to Government, or hold revenue 
 free lands capable of being assessed at not less than Rs. 10 per 
 annum ; and benches have been directed to be constituted, 
 wherever possible. It remains to be seen to what extent the 
 orders issued will have the effect of substituting the inexpen- 
 sive machinery of popular tribunals for the regular courts 
 for the settlement of petty litigation. The greatest obstacle 
 to the rapid extension of the scheme is the ignorance of 
 village munsifs in the backward districts and the low estima- 
 tion in which they are held in the more advanced districts, on 
 account of their liability to be called upon to do somewhat 
 degrading duties in connection with revenue administration — 
 a state of things handed down from a period when village 
 servants were subjected to personal chastisement for remiss- 
 ness — real or supposed — in the collection of revenue. In 
 many zemindaries the office of village munsif has not been 
 maintained. The whole subject of placing the village 
 officers in zemindaries on an efficient footing is now under the 
 consideration of Government, and legislation is contemplated 
 for the purpose. Recently the Government has also issued 
 rules making it obligatory on village officers to pass certain 
 educational tests. These measures will, doubtless, improve 
 the efficiency of village munsifs as a class. Meanwhile, 
 village court benches may be organised in all large villages or 
 groups of villages where official or non-official persons of suffi- 
 cient education and intelligence may be available for presiding 
 over the benches. The sub-registrars in most of the stations 
 in the Ceded Districts and Kurnool and in the zemindaries of 
 the Northern Circars have very light work to do, and they 
 might be entrusted with judicial duties under the Village 
 Courts' Act without prejudice to their duties as registra- 
 tion officers. The law should be amended so as to make it 
 compulsory on suitors to institute their suits in the village 
 courts in all villages or groups of villages where a village 
 court bench has been established, when the value of the claim 
 does not exceed Rs. 20. It ought not to be in the power 
 of a plaintiff who wishes to annoy a defendant to compel him 
 to appear before a district munsif to answer a' claim and
 
 311 
 
 subject him to all the vexation and expense incidental to being 
 called away from his village and his work, when there is a 
 village court at a convenient distance. The constitution 
 of a bench, of which one of the judges is chosen by the defend- 
 ant and another by the plaintiff is a reasonable guarantee for 
 securing the impartiality of the tribunal, and in special cases 
 the district munsif has the power of withdrawing, for reasons 
 shown, a suit from a village court for trial before himself. 
 As regards suits involving claims exceeding Ks. 20 and not 
 exceeding Rs. 50, the plaintiff may be given the option of 
 instituting them either in the village or the district munsif's 
 court, but in such cases, if a suit is instituted unnecessarily in 
 a district munsif's court, the munsif should have the power 
 of refusing costs to the plaintiff or of allowing only such 
 costs as he would have incurred if he had instituted the suit 
 in the village court. This appears to be the rule in England 
 as regards suits which are instituted in the High Court of 
 Justice in Westminster when they might have been instituted 
 in one of the county courts. Similar provisions have been 
 enacted in this country in the Presidency Small Cause Act 
 and in the City Civil Court's Act to check the institution of 
 suits in the High Court that might be instituted in courts of 
 lower grade possessing concurrent jurisdiction as regards the 
 entertainment of such suits. Eventually, I think the pecuniary 
 limits as regards suits to be instituted compulsorily in the 
 village courts might be considerably enhanced. In this con- 
 nection it should be remembered that the recent enhancement 
 of the pecuniary jurisdiction of village munsifs from E-s. 10 
 to Rs. 20 is no real enhancement, as the purchasing power 
 of money has fallen by more than 50 per cent, since 1816 
 when the lower limit was fixed. To ensure the successful 
 working of the whole scheme, it will, of course, be neces- 
 sary to inspect the records of the village courts from time 
 to time, giving the presiding judges the needful advice in 
 regard to working the provisions of the Act and clearing up 
 difficulties. This work can be done by Revenue Officers not 
 below the rank of Tahsildars. 
 
 107. The extensive utilization of the agency of village 
 ,, courts' benches for the settlement of 
 
 Higher litigation. ,, ■,■ , . , . • ., , t-, 
 
 petty litigation is the means by which 
 the superior courts, from the district munsifs upwards, can 
 be relieved of work, which can, with advantage, be done by 
 inexpensive popular bodies in view to the former being set 
 free to devote their attention exclusively to the higher 
 litigation. The mere quantity of litigation in the superior
 
 312 
 
 courts, and more especially in those of district munsifs, lias 
 been fast increasing, while owing to the multiplicity of laws, 
 the growing legal consciousness of the people and complexity 
 of social relations, the rise of a class of legal practitioners 
 with high educational qualifications, and the necessity for 
 justifying every decision given by such elaborate arguments 
 as will commend themselves to appellate tribunals, the old 
 rough methods of arriving at decisions are no longer available. 
 To meet the growing work the Government had recently 
 to appoint additional district munsifs, but the relief thus 
 afiforded has hardly been appreciable ; and as judicial officers 
 cannot be indefinitely multiplied, except at enormous cost and 
 consequent increase of taxation, the expediency of leaving 
 petty litigation to be dealt with by popular tribunals becomes 
 obvious. The present system of administration of civil justice 
 is felt to be faulty also in other important respects. The 
 necessity for ensuring full consideration of the facts and of 
 the legal aspects of each case as well as rectitude of decision, 
 by tribunals in the rural tracts presided over by single paid 
 judges not amenable to the influence of public opinion, has 
 led to the provision of an elaborate system of appeals ; and 
 this has in its turn given rise to serious evils. The chances 
 of error in the ascertainment of facts even by native judges, 
 conversant with the language of the country, and the customs, 
 habits and idiosyncracies of the people, in accordance with 
 artificial tests borrowed from a foreign jurisprudence, are 
 considerable ; and these chances are greatly multiplied when 
 appellate courts presided over, for the most part, by Euro- 
 pean judges have to decide from recorded evidence on the 
 credibility of witnesses and the truth of the story told by them, 
 without having an opportunity of watching their demeanour 
 at first hand when they tell the story. Added to this, there 
 is the inconvenience arising from the absence of opportunities 
 for legal training on the part of the European officers who 
 are liable under administrative necessities to be transferred 
 from executive to judicial appointments, even when they 
 have no special aptitude for judicial work, while the native 
 judges in the lower courts are mostly men who have had a 
 legal training. These circumstances enhance greatly the 
 uncertainty to which litigation must always be more or less 
 subject and, I believe, I am expressing the opinion of persons 
 who have had special opportunities of watching the working 
 of the courts, when I say that these circumstances have led 
 to the growth of much unwholesome litigation . The following 
 remarks of the Honorable Mr. Chentsal Rao extracted from
 
 a paper written by him some years ago show to what extent 
 the uncertainty of law promotes litigation : " I think that the 
 character of our courts is a cause of our .poverty. The law 
 charges are enormous and the law administered is too refined 
 for the country, and the uncertainties of law are so great that 
 resort to courts has almost all the characteristics of gambling. 
 
 Apart from the enormous cost, the general 
 
 ignorance of the English judges of the manners, customs 
 and habits of our people has made the results of a suit ex- 
 tremely uncertain, and has encouraged the people to resort to 
 courts upon the slightest grounds. I will give you one small 
 instance of the uncertainty of the law. In a certain case of 
 Hindu adoption, a man from the mofussil, with whom I was 
 acquainted and against whom the District Judge had passed 
 an adverse decision, came to me and asked my advice as to 
 whether he should appeal against the decision. I told him 
 that he had no good grounds and so said an eminent vakil 
 whom he consulted. He, however, ventured to appeal and 
 try a chance. He had the decree of the lower court upset 
 against the convictions of the vakil whom he employed. 
 There was an appeal to the Privy council, and the decree of 
 the High court was upset. Such instances are not few. It 
 is not so much the cost of the courts and the uncertainties 
 of law that I so much regret as the enormous amount of time, 
 energy and attention that is lost in the courts." 
 
 108. The remedy for this state of things appears to be 
 
 the adoption of some scheme similar to 
 
 Reforms suggested by that advocated by Mr. T. L. Strange, one 
 
 Mr. strange. ^^ ^^^ .^^^^^ ^^ ^^^ ^^^^ g^^^^^ (.^^^^^ 
 
 in his letter written to Government so long ago as 1860 
 on the subject of judicial reform.^^^ The main features of 
 Mr. Strange's scheme were as follows. For the settlement 
 of petty litigation, he proposed panchayets constituted some- 
 what like the Village Court benches above described ; and 
 he expected that these panchayets would relieve the regular 
 tribunals of nearly half the litigation of the country. For 
 the settlement of higher litigation, he proposed to have two 
 sets of courts, viz., first. District Courts, 50 in number; and 
 secondly, ten appellate or Provincial Courts with a High Court 
 in the Presidency Town. The District Courts were to, be 
 presided over by two judges of which one was generally to be an 
 European and the other a native. The object in associating 
 
 "^ Mr. Strange' 8 letter seems to me to be admirable and one that deserves to be care- 
 fully read by every one who is interested in reforming the administration of justice, 
 
 40
 
 m 
 
 natives with Europeans in the district courts was four-fold ; 
 viz., firstly, to secure correct appreciation of the evidence given 
 before the court by a native judge familiar with the language, 
 turns of thought and devices of native witnesses ; secondly, 
 to secure impartiality of decision ; thirdly, to limit the number 
 of appeals; and fourthly to afford opportunities for legal 
 training to European officers, who may be called upon to fill 
 high judicial offices. As regards the necessity for a plurality 
 of judges to form a court, Mr. Strange observed : " The 
 assistance and check which one judge provides to another 
 when working together on the same bench, even when the one 
 is inferior to the other, few, I imagine, will fail to recognize. 
 As respects the number of the judges to form the bench, 
 I have been in the habit of sitting in a court consisting, 
 sometimes of two judges, and sometimes of three. I much 
 prefer the court of two judges for working purposes. Two 
 judges can literally put their heads together. The presence 
 of a third, dividing the other two from each other, produces 
 a physical impediment to close consultation. I believe, more- 
 over, that a case is apt to receive greater consideration on 
 a difference of opinion arising, when two judges form the 
 court than when there are three. The one has to per- 
 suade the other, but if a third be present and prematurely 
 interposes an expression of opinion, a majority may be 
 formed and the case terminated without proper discussion." 
 For the Provincial courts Mr. Strange proposed to have 
 only a single judge — a covenanted civilian. As regards ap- 
 peals, where the judges of the District courts differed 
 on any point of fact in any suit a reference was to be 
 made to the Provincial judge, who, in this way, would stand 
 as a third judge or referee to each such court. The reference 
 was to be made without expense to the parties who were, 
 however, to be at liberty to be present and conduct the case in 
 the superior court. Where the judges of the District court 
 liffered on a point of law the reference was to be made to 
 the High court. The decision of the Provincial court was 
 to be final on the facts of the case, but if that court differed 
 from the District court on a point of law in a case thus 
 referred for decision of fact, the Provincial court was to 
 refer the point of law for adjudication by the Presidency 
 court. By a question of fact, Mr. Strange meant the question 
 of the credibility of testimony, oral and documentary ; and 
 the points of law on which Mr. Strange would allow an 
 appeal, he defined to be, first, the refusal to admit to hearing 
 any material evidence; second, the misconstruction of any
 
 315 
 
 material document ; third, the subsidiary facts found not 
 warranting the main fact derived therefrom, or the facts 
 ascertained not warranting the judgment founded on them. 
 The above are the main outlines of the scheme propoimded 
 by Mr. Strange, and doubtless it would require modifications 
 in detail, more especially in regard to the definition of 
 matters of law and matters of fact, but the broad principles 
 on which the scheme is based are, I believe, quite sound and 
 as applicable to the litigation of the present day as they were to 
 litigation thirty years ago. The principal changes which have 
 occurred since Mr. Strange wrote are the immense improve- 
 ment, owing to advance of education, in the learning, eflBciency 
 and probity of the native judges, and the substitution for 
 the old corrupt, inefficient race of petition writers, of a class of 
 intelligent native legal practitioners, who have mostly received 
 a university education and whose moral tone and general 
 probity are daily advancing. It is not my object to do more 
 than draw attention to the necessity for reform in the direc- 
 tions pointed out by Mr. Strange, and I have, therefore, 
 refrained from suggesting any detailed scheme. It is, how- 
 ever, my impression that though more courts will have to be 
 established than were contemplated by Mr. Strange, and the 
 Provincial courts will have to consist of two judges in like 
 manner with District courts, the needful reform can be 
 carried out without entailing on Government any appreciable 
 additional cost. The extension of communications in recent 
 times has diminished the inconvenience to suitors in having to 
 proceed to the stations in which the courts are held, and this 
 inconvenience might be still further minimized by the courts 
 holding sessions in different stations within their territorial 
 jurisdiction in different periods of the year. The despatch 
 of business might also be expedited by allowing one judge 
 to take the evidence of witnesses, both the judges, however, 
 hearing the cases argued before them. Arrangements, it 
 seems to me, can easily be made for all European and native 
 officers in the Civil Service being made to serve as judges 
 in these courts. 
 
 109. The administration of crirninal justice is believed to 
 _,..,,,. be even less satisfactory than that of 
 
 Cnminal Justice. ...... , o ,^ . « . 
 
 civil justice on account ot the interior 
 character of the agency which has to be employed, though 
 latterly there has been some improvement. Petty cases are 
 disposed of by village magistrates under Regulation XI of 
 1816, but ^this agency is not as efficient as it ought to be, 
 and it is desirable that steps should be taken to secure the
 
 316 
 
 services of really influential men for these posts under 
 arrangements similar to those contemplated for the appoint- 
 ment of village munsifs in the Village Courts' Act. This 
 object will, to a considerable extent, be secured if the 
 appointments are made on the recommendation of Taluk 
 Boards, or union pauchayets constituted under the Local 
 Boards' Act. The village magistrates selected should receive 
 a commission under the seal of the Governor in Council in 
 view to enhancing the importance of the oflBce in the eyes 
 of the general public and making it one to be sought after 
 by th^ more respectable class of land-holders. For the 
 disposal of petty nuisance cases benches of magistrates have 
 been constituted in all large towns under the Criminal 
 Procedure Code, and this is a step in the right direction, and 
 capable of considerable extension. The bulk of the work of 
 the mofussil magistracy is, however, done by Sub- Magis- 
 trates paid Rs. 100 and Rs. 120, who generally exercise 
 second class powers, and are empowered to pass sentences of 
 6 months' rigorous imprisonment and of fine to the extent 
 of Rs. 200 . Till recently they were paid such low salaries 
 as Rs. 60 and Rs. 70 and the recent enhancement of pay to 
 Rs. 100 and Rs. 120 is so far an improvement. Nevertheless, 
 even the enhanced pay is inadequate considering the enormous 
 powers and responsibilities of the magisti-ates. Moreover, 
 Tahsildars who are paid higher salaries have recently been 
 relieved of all magisterial work and the whole of the work 
 done by the subordinate magistracy has now devolved on 
 Deputy Tahsildars. It is, of course, out of the question 
 enhancing the salaries of the latter class of officers still 
 further, and the only feasible course for improving the 
 administration of criminal justice appears to be to constitute 
 benches of Magistrates under the presidency of Tahsildars 
 for the disposal summarily of all offences specified in section 
 261 of the Code of Criminal Procedure. The graver cases 
 should be tried by the District courts already referred to. 
 It is not desirable to deprive Tahsildars altogether of all 
 magisterial powers, more especially as in case of emergencies, 
 such as imminent danger of a breach of the peace, their 
 influence will have to be availed of for the purpose of pre- 
 serving or restoring order ; and accordingly the Government 
 has withdrawn from them only the power of entertaining com- 
 plaints and of committing cases to the Sessions courts for 
 trial ; they retain the preventive powers under Part IV of the 
 Code of Criminal Procedure for the dispersion of unlawful 
 assemblies, &c. Tahsildars might arrange to preside over
 
 817 
 
 benches at different stations during their tours. It may not 
 be feasible to introduce these arrangements at the outset in 
 all parts of the country. They should be introduced in 
 all districts in which litigation is very heavy and gradually 
 extended throughout the presidency. 
 
 110. In making the above remarks, I do not wish to be 
 „ . , . understood as in the least undervaluinaf 
 
 of British system of the immcusc advantage resulting to the 
 justice as applied to couutry f rom the introduction of the liberal 
 coun ry. principles of English law breathing the 
 
 spirit of free institutions. The most important of these 
 principles are, first, that nobody is punishable for anything 
 done, spoken or written by him, except according to the 
 known conditions of the laws and by regularly-constituted 
 tribunals, the accused being given the benefit of the doubt 
 in all cases in which the act complained of is not clearly 
 shown to have been committed or clearly shown to be an 
 offence ; secondly, that nobody, however highly placed he 
 may be, is above the law or held to be unaccountable for 
 infractions of law ; and thirdly, that private individuals have 
 the same remedies against Government for injuries caused to 
 them by acts authorized by it in excess of the powers con- 
 ferred by law, as they would have if the acts had been com- 
 mitted by other private individuals. The conscientious spirit 
 in which these principles have, on the whole, been carried 
 out, notwithstanding the adverse conditions under which 
 they have to be worked, is truly wonderful ; and the result is 
 the diffusion throughout the country of a sense of security 
 of person and property, which is above all price and which 
 was formerly altogether unknown. Nor is the complaint often 
 made that the Indian legislature has been over-active well- 
 founded. This charge has been effectually disposed of by 
 Sir Henry Maine, who pointed out that if the legislature had 
 not provided intelligible codes of laws for the guidance of 
 courts of justice, judicial legislation would have imported into 
 India whole masses of English law with all its technicalities, 
 and that all really important influence in the direction of law- 
 making would have fallen " into the hands of a very small 
 minority of lawyers trained in England, whose knowledge 
 must have seemed to the millions affected by it hardly less 
 mysterious and hardly more explicable than the inspired utter- 
 ances of Mahomet or Menu." The law in any case having 
 to be derived from exotic sources instead of being developed 
 gradually according to social necessities, it is a great advan- 
 tage to have>it authoritatively embodied in codes of manageable
 
 31*8 
 
 dimensions, capable of being studied and understood instead of 
 having to be fished out in thousands of volumes of the English 
 law reports. The real evil arises from the fact of the law, 
 and criminal law especially, being far too refined^^- for the 
 people for whom it is intended, and its administration having 
 to be entrusted to judges who have no intimate acquaintance 
 with the usages and customs and modes of thought of the 
 people to whom it is applied, or to low-paid native magis- 
 trates who are clothed with enormous powers. The compli- 
 cated procedure and the machinery of appeals prescribed to 
 ensure correct decisions multiply the chances of error and add 
 to the delay, vexation and expense of litigation. It is in view 
 
 13* The late Mr. Etmga Charlu, Dewan of Mysore, made the following remarka 
 on the working of the Penal Code : " It is impossible not to feel some surprise at the com- 
 placency and even admiration with which the working of this theoretic code is usually 
 regarded without considering its eflects on the interests of the people at large. Theo- 
 retical minds carried away by the logical perfection of the code forget the evil effects of 
 its artificial definitions, which are not altogether based on the popular train of ideas. 
 Popular definitions admit of natiiral expansion to meet every new circumstance, while 
 artificial ones perpetually stand under the necessity of artificial expansions which serve 
 only to remove them further from popular thought. It is undeniable that the code is 
 not understood without great effort even by the educated officers, and much less carried in 
 their daily train of thoughts. What must be the effect upon the illiterate population of 
 such legislation bearing on their daily concerns ! Popular experience can only describe 
 the code as a cruel piece of legislation which, in its anxiety that no description of offence 
 might possibly be left out, has framed such wide and comprehensive definitions as to 
 mingle serious crimes and mere civil injuries in the same category, and in order that all 
 aggravated cases might be adequately met, has provided for offences exorbitant and often 
 unlimited fines and imprisonment. It has thus placed the peaceful citizen equaUy with 
 the professional dacoit perpetually under the tender mercies of a not immaculate official 
 hierarchy. Js o one can be sure that any momentary indiscreet act of his might not bring 
 him under the grasp of the Penal Code, and in so bringing him, consign him to a punish- 
 ment, which, to him, may be a social death under the prevailing ideas of religion and 
 custom. . . . Where there is such unlimited latitude of punishment, it is vain to 
 expect that it will be properly exercised. ... A simpler code keeping to popular 
 ideas, with certainty rather than severity of punishment in all ordinary cases, with excep- 
 tional powers confined to special courts, is the want of the country." This was written 
 within 6 or 7 years after the introduction of the Penal Code and it reflects the popular 
 feeling at the time. I myself remember the vague undefined feeling of terror with which 
 the Penal Code was regarded by the rural population soon after it was introduced. Sir Henry 
 Maine also refers to the same feeling in the following remarks : " I have had described to 
 me a collection of street songs sung in the streets of the city which is commonly supposed to 
 be the most impatient of British rule by persons who never so much dreamed of having 
 their words repeated to an Englishman. They were not altogether friendly to the foreign 
 rulei'8 of the country, but it may be broadly laid down that they complained of nothing 
 which might naturally have been expected to be the theme of complaint. And without 
 exception, they declare that life in India had become intolerable since the English criminal 
 laws had begun to treat women and children as if they were men." During the last 
 30 years the experience of the working of the code has led to its provisions being better 
 understood, and it does not inspire the terror that it once did. Even now, however, 
 as regards the punishments prescribed for some offences, the provisions as to certain 
 offences being non -bailable and the compulsorj- enforcement of the attendance of women 
 without distinction of caste or rank, the Penal Code and the Code of Criminal Procedure 
 are imsuited to the prevailing ideas of ,the people and their social and religious usages. 
 The consequence of refusing bail to many a Hindu charged with a non-bailable offence 
 is, in some parts of the country, excommunication, a punishment far in excess of the 
 requirements of the offence of which he may or may not be convicted. The fear of com- 
 pulsory personal attendance in courts of respectable women as parties or witnesses 
 is an encouragement to false or vexatious criminal proceedings. And the purchase 
 of immunity from this disgrace by pecuniary payments is a not unlooked-for result in. 
 the institution of such proceedings.
 
 m 
 
 to adapt the abstract propositions laid down in the law to the 
 customs, usages and sentiments of the people in their practical 
 application, that it is necessary that all petty offences which 
 can be left to be dealt with by popular tribunals should be so 
 left, while the graver offences, on the suppression and punish- 
 ment of which the well-being and safety of the State depend, 
 should be enquired into by single judges with the aid of juries, 
 or where the conditions of the country preclude the employ- 
 ment of juries, by benches of judges containing a due admix- 
 ture of the native element. 
 
 YI. — Local Fund and Municipal Administration and 
 Legislation affecting Social Usages. 
 
 111. The last group of questions we have to consider re- 
 
 lates to the disintegration of village com- 
 la^comSties."* ^'^" ^^^^ities and the decay of the spirit of 
 
 co-operation among the villagers for the 
 purpose of carrying out large undertakings and warding 
 off common dangers ; and also to the evils arising from the 
 absence of a trustworthy machinery for ascertaining when 
 Government can safely undertake legislation affecting laws 
 of inheritance or social usages corresponding to changes 
 which are taking place in the economic condition of the 
 people. 
 
 112. It is commonly believed that the solidarity of the 
 
 village communities was undermined by 
 of ^communal sjfri?''^^ ^^^ ryotwar systom introduced by Sir 
 
 Thomas Munro. The fact, however, is 
 that village communities, which were originally composed of 
 kinsmen, were, at the beginning of the century, becoming 
 disintegrated by the introduction of strangers even in those 
 parts of the country where they still retained their original 
 form ; common holdings were in process of transformation 
 into individual holdings, and the intermediate stage of hold- 
 ing lands of whole villages in defined shares subject to the 
 condition that each sharer was to cultivate the lands allot- 
 ted to him for a period of years had been reached. Thus 
 we find in the Tan j ore district, where village communities 
 flourished in an unimpaired condition down to recent times, 
 the Collector, Mr. John Wallace reported in 1805 that, out 
 of 5,063 villages, 1,087 villages were owned by single owners 
 or families, that 2,202 villages were owned by mirassidars 
 who held th^ir lands in severalty in distinct plots and that 
 1,774 villages were held in common by the mirassidars* The
 
 820 
 
 extent to which in the natural course of things strangers 
 had been introduced into the mirassi bodies will be seen 
 from the fact that, out of 62,048 mirassidars in the district, 
 17,149 were Brahmins, 43,442 were Sudras or Native Chris- 
 tians, and 1,457 were Muhammadans. That .the ryotwar 
 system brought into force in the beginning of the cen- 
 tury by Sir Thomas Munro hastened the decay of the 
 village communities does not, however, admit of doubt ; 
 for, as pointed out by Sir Henry Maine, in a state of society 
 where the rights of individual members are determined by 
 custom more or less vague, the question as to whom the 
 government makes responsible for the payment of its dues 
 practically determines what type the society and the tenure 
 of lands by its members shall assume. If the government, 
 for instance, makes the head of a village the person respon- 
 sible for its revenue, the interest of such head in the lands 
 becomes the predominant one, and other persons having 
 interests in the lands become his tenants unless the process 
 is arrested by positive legislation. Similarly, if the whole 
 body of proprietors in the village be made jointly responsible 
 for the government revenue, the natural evolution of indivi- 
 dual property is arrested. Again, if the government decides 
 to deal with each individual cultivator as regards the payment 
 of revenue, the tendency is to break up the village commu- 
 nities. The most potent cause, however, of the disintegration 
 of village communities was the establishment of orderly 
 government and internal tranquillity and the suppression of 
 external aggression. So long as there was lawlessness in 
 the country, the village communities were kept in a state of 
 cohesion for purposes of self-defence, the successful repulsion 
 of attacks from without which might otherwise sweep whole 
 communities away being of far greater importance than the 
 prevention of petty tyranny within the communities them- 
 selves. When the external blows by which these communities 
 are kept in a state of kinetic equilibrium are removed, 
 the internal rivalries and jealousies come into play, and the 
 result is that the inconveniences and injustices of common 
 holding of land are felt to be great hardships ; and the 
 improvements in production which a settled condition of 
 things brings about create a preference for individual hold- 
 ings. This transformation of common into individual pro- 
 perty is a most beneficial process, and one which is an 
 essential factor in the industrial progress of a country. 
 Similar considerations apply to the joint family system. Under 
 this system personal comforts, personal feelings and personal 
 advantage must be sacrificed by each member in the pursuit
 
 321 
 
 of the common good of the family, and the result is that, 
 while the earning and non-earning members are placed on a 
 par, thereby preventing extreme hardships to the latter, the 
 incentive to exertion among the earning members is weakened 
 to the extent to which their earnings have to be shared with 
 members who have not in any way contributed their quota of 
 labour towards such earnings. So long as mere numbers 
 give strength to a family by enabling it either to cultivate a 
 larger extent of waste lands or to fight other communities 
 with greater chances of success, there is every inducement 
 to the members of the joint family to hold together, notwith- 
 standing the restrictions imposed on the personal independ- 
 ence and comfort of the several members. When, however, 
 these cohesive forces are removed, the family breaks up. 
 This tendency is, as already stated, a beneficial one, not- 
 withstanding that thereby the chances of co-operation for 
 the purpose of carrying out large undertakings are made 
 more difficult in the same way as it is more difficult to 
 raise a large pile of buildings by means of free labour than 
 by means of slave labour. 
 
 118. The obvious remedy for the evils incidental to this 
 situation is the promotion among the peo- 
 minSKon"'" '"'"^ ^^' pl© of habits of voluutary co-operation 
 for carrying out public objects, and it is 
 this object that education obtained by taking part in the 
 administration of local and municipal affairs is intended to 
 secure. 
 
 The policy of entrusting the management of affairs con- 
 nected with the well-being of towns to bodies composed 
 partly of official and partly of non-official members was, for 
 the first time, inaugurated in 1865. In 1871, similar bodies 
 were created for the management of public matters affecting 
 the well-being of rural tracts. In 1884, the scheme of muni- 
 cipal and local administration was placed on a somewhat 
 wider popular basis, and the principle of allowing the inhab- 
 itants of towns and rural tracts to elect their representa- 
 tives to serve on the boards was to some extent recognized. 
 The elective system is in force in 32 out of the 55 towns 
 constituted municipalities, the former containing a popu- 
 lation of 1,200,000. The extent to which non-official per- 
 sons take part in the administration of affairs connected 
 with municipalities will be seen from the following figures. 
 There were, on 31st March 1892, 871 municipal coun- 
 cillors, of ]yhom 473 were nominated by Government and 
 398 elected by the townspeople. The number of official 
 
 41
 
 322 
 
 members was 207 and of non-official members 66 i. Of 
 the total number 158 were Europeans or Eurasians and the 
 remainder natives. For the administration of local affairs 
 of rural tracts there are 270 Union Panchayats, 86 Taluk 
 Boards and 21 District Boards. There are 654 members 
 serving on the District Boards, 277 being elected by the people 
 and the remainder nominated by Government. 118 of them 
 are Europeans or Eurasians and 536 are natives. In the 
 Taluk Boards there are 1,141 members, of whom 317 are 
 officials and 824 non-official persons. 66 among these are 
 Europeans or Eurasians and 1,076 natives. In the Union 
 Panchayats there are 2,511 members, of whom 865 are officials 
 including 622 village officers and 1,646 non-official persons. 
 Thus the total number of persons taking part in municipal 
 and local administration is 5,177, of whom 3,562 are non- 
 official persons. 
 
 114. The figures given above show that there is a con- 
 Difficuitiesofiocaiad- sidcrable number of non-official persons 
 ministration and sue- who are being trained in the perform- 
 cess attained therein. ^^^^ ^f ^^^j-^ dutics ; and, as the num- 
 ber of Local Fund Union Panchayats increases, still larger 
 numbers of such persons will, in course of time, be entrusted 
 with such duties. Since 1884 the Government has paid un- 
 remitting attention to Municipal and Local Fund administra- 
 tion, and by close scrutiny of the work done, and of the 
 attitude of Government officers towards it, has sought to 
 awaken in non-official bodies an adequate sense of their 
 duties and responsibilities. The success that has attended 
 these efforts will be seen to be considerable when it is remem- 
 bered how entirely new the idea of combination for public 
 purposes of persons not organized in castes, or guilds under 
 natural leaders, is in this country. In reviewing the results 
 of Local Fund administration for 1889-90, the Madras Gov- 
 ernment remarked : " These results are, to a great extent, 
 " due to the exertions of the Taluk Boards and Union Pan- 
 " chayats, which worked, on the whole, with considerable 
 *' success and energy and has thus amply justified the action 
 " which called them into existence. His Excellency the Gov- 
 " ernor in Council trusts that, in course of time, all these local 
 *' bodies will become still more efficient and that their indi- 
 " vidual members will devote more and more of their attention 
 *' to the interests of the administration. The advancement 
 " of primary education, the extension of medical relief and vac- 
 *' cinatiou, the improvement of village communipations, and 
 *' the utilization of sanitary allotments are subjects calling for
 
 323 
 
 " their earliest and most careful consideration." The Govern- 
 ment review of the work done .by local bodies in 1891-92 
 shows still greater progress. On the other hand, in munici- 
 palities, the administration has been less successful, owing to 
 the lack of interest in their duties displayed by the majority 
 of the councillors. There is, in these councils, a tendency 
 to split up into factions, and moreover the duties of the 
 chairmen of municipalities, especially in large towns, are 
 so heavy as to require four or five hours' work from them 
 daily, an amount of time which very few non-official persons, 
 who have their own business to attend to, can afford to give 
 to the performance of public duties. The regulations laid down 
 for the guidance of the councils in the various departments 
 of work entrusted to them are also so numerous and compli- 
 cated as to require special study. It has, therefore, been found 
 necessary in several of the larger municipalities to employ a 
 salaried chairman. If arrangements can be made for lending 
 to municipalities the services of Government officers of the 
 rank of Tahsildars, Deputy Collectors or District Munsifs 
 for carrying on the duties of chairmen there can be no doubt 
 that it will much improve the efficiency of municipal admini- 
 stration, and while giving to non-official members full scope 
 for scrutinizing the work will prevent the danger of munici- 
 pal councils being split up into factions. The chairmen too 
 will be persons trained in public business, who, if they 
 neglected their duties, would forfeit their prospects of pro- 
 motion in the Government service. It would, of course, be 
 easy to point out in the conduct of local administration 
 instances of apathy and ignorance on the part of some mem- 
 bers and factious conduct on the part of others, but it must 
 be remembered that the whole scheme has had to be worked 
 on entirely new lines unfamiliar to the traditional habits and 
 feelings of the people. The old organic groups of castes, 
 village communities and guilds were broken up and new 
 bodies composed of members belonging to different creeds 
 with divers interests created. The duties entrusted to these 
 bodies at the outset were also not of a kind calculated to 
 appeal to their sympathies. These duties had nothing to do 
 with the care and superintendence of places of religioas wor- 
 ship and of charitable endowments which are generally more 
 or less connected with religion, with the relief of the poor, with 
 the assessment of taxes, with the maintenance of the police, 
 and with the administration of justice — matters affecting 
 closely the inner life of the villagers and in which they 
 might be sjipposed to be primarily interested. The construc- 
 tion of roads and bridges is best attended to by the central
 
 324 
 
 government, and ideas of sanitation are too refined and 
 modern to be popular in a poor and backward country ; and 
 education, by being dissociated from religion, has lost one of 
 its strongest supports. The creation of municipalities and 
 Union Panchayats has also been generally accompanied by 
 the imposition of additional taxation, a circumstance calcu- 
 lated to render the bodies unpopular. The funds at the 
 disposal of the local bodies have been much too limited to 
 admit of anything very substantial being effected in the way 
 of improvements and the recurrence of scarcities in several 
 parts of the country frequently throws the finances of the 
 local bodies out of gear and impairs their usefulness. When 
 these difficulties are borne in mind, it will be readily seen 
 why greater success has not been attained in Local and 
 Municipal administration. 
 
 115. Further advance in this direction can be looked for 
 only by entrusting to local bodies more 
 adiJnirtratioir^^shonrd and morc of the work of real adminis- 
 be worked to ensure tratiou. The mcasurcs recommended by 
 grea er success. ^^ ^^^ ^^^ Settlement of petty litiga- 
 
 tion — civil and criminal — by means of popular bodies will, 
 to some extent, have the effect of creating greater interest in 
 public affairs than has been displayed hitherto. The assess- 
 ment of taxes like the income-tax might, in rural tracts, be 
 entrusted in course of time to Local Fund Panchayats who 
 might be assessed at a lump sum which would be distributed 
 by them according to the means of the individuals liable 
 to assessment. The obligation to maintain village forests, 
 agricultural experimental farms, technical schools may, 
 wherever possible, be imposed on them. In the matter of 
 the dispensation of relief in times of distress the assistance of 
 Local Fund Union Panchayats might be made use of more 
 than it has been. Under the influence of a watchful pub- 
 lic opinion the duties and responsibilities of Government 
 in this respect have greatly widened of late years, as the 
 Government is made responsible for ensuring that, in times 
 of failure of crops, no deaths by starvation ensue. This is 
 a duty which it is very difficult for any government to 
 discharge satisfactorily. The Government has to act ac- 
 cording to fixed rules to prevent public money being 
 wasted or misappropriated, and this makes it difficult to 
 adapt the forms of relief to the circumstances and needs 
 of the different localities. While, on the one hand, it 
 would be in the highest degree demoralizing by a too liberal 
 dispensation of relief to teach the people to look for Go's*- 
 ernment assistance, whenever they feel pinched, instead of
 
 326 
 
 teaching them to provide in prosperous seasons against 
 contingencies of this kind, it would, on the other hand, be 
 inhuman to refuse help to the suffering population when 
 large tracts are distressed. It is, therefore, an extremely- 
 difficult and delicate task to determine in any particular 
 case at what stage of the distress the Government ought to 
 intervene and provide relief at the expense of public funds 
 instead of leaving cases of distress to be dealt with as in 
 ordinary years by voluntary private charity. Whenever, 
 therefore, distress owing to failure of crops is apprehended, 
 large establishments have accordingly to be employed to 
 be in readiness to start measures of relief in case the 
 distress, that is beginning to be felt, should grow in intensity. 
 The offi.cers employed are generally men who know little 
 about the circumstances of the localities in which distress 
 prevails, and, often, a favorable turn in the season renders 
 any measures of relief unnecessary. For instance, during 
 the last drought a considerable portion of the expendi- 
 ture on famine relief represented the cost of the additional 
 establishments employed to watch and report on the state 
 of the country. In spite of all precautions it would be futile 
 to expect to ensure that all cases requiring relief in all 
 parts of the country had been sought out and provided 
 for and deaths by starvation were completely prevented. It 
 seems to me that this is a duty which should be performed 
 by local unpaid non-official agency and that, instead of 
 Government being made responsible for deaths by starvation, 
 the Local Fund Union Panchayats should be made responsible 
 and placed in funds in order that they might be enabled to 
 discharge this duty efficiently except in times of dire famine, 
 when the whole power of the State will, of course, have to 
 be applied to it in grappling with so serious a crisis. A cer- 
 tain percentage of the land revenue might be assigned for 
 this purpose, and to ensure its economical administration, 
 the Local Boards should bo asked to supplement it with funds 
 at their disposal. The administration of relief should also be 
 regulated by rules laid down by Government, and questions 
 as to the circumstances under which, and the persons to whom 
 it should be dispensed should be determined by Local Fund 
 Union Panchayats. 
 
 116. There is another important direction in which the 
 Necessity for ntiiiz- uscfulness of local bodics might be de- 
 ing Local Boards as volopcd, viz., in ascertaining by their 
 S""'ir?egl3 means when legislation affecting social 
 afifecting social i^sages, usagcs and laws of inheritance can and 
 *"■ should be undertaken for the benefit
 
 ^26 
 
 of the people ; and the necessity for utilizing these bodies in 
 this manner is all the greater, now that under the scheme for 
 enlarged legislative councils just introduced, the local bodies 
 have been conceded the privilege of nominating members to 
 these councils. One of the effects of the introduction of the 
 British system of administration of justice by fixed laws and 
 regular courts is to suppress the indigenous agencies, whetlier 
 caste assemblies or guilds, by which the customary usages 
 regulating the conduct and rights of the members of the com- 
 munities were constantly though unconsciously modified to 
 suit change of circumstances. Even now in the rural tracts, 
 the headmen of certain castes enquire into and dispose of dis- 
 putes among the members of the castes regarding offences 
 relating to marriage, partition of family property, breaches of 
 caste observances, &c.,the decisions being enforced either by 
 the imposition of fines which are paid to the village temple, or 
 to a common fund, or by excommunication of the delinquents 
 by depriving them of their social privileges, such as the 
 " taking of fire and water " from their neighbours, entering the 
 village temple for purposes of worship, attending at mar- 
 riages and funerals, and availing themselves of the assistance 
 of the village barber, washerman, &c. These caste assemblies, 
 which are not now recognized by law, have lost much of their 
 vitality and will, in coarse of time, disappear altogether. 
 This is from one point of view a necessary and beneficial 
 process, as it is desirable in the interests of the country that 
 the endless differentiations of customary law in small com- 
 munities should be removed, and a fairly homogeneous law 
 applicable to large communities evolved. This result has 
 been brought about in most civilized countries by judicial 
 legislation which, while reducing the law to a uniform type 
 introduces at the same time, such modifications in it as the 
 progress of society requires. But as justice is administered 
 in this country mostly by judges who belong to a diffe- 
 rent nationality from that of the litigants, and who would 
 incur blame if they, instead of administering Hindu law 
 of the strictest type, modified it according to their own ideas 
 of the fitness of things and of the necessities of individual 
 cases, the tendency is to stereotype the ancient law and 
 arrest the changes which it would have undergone in its 
 natural course of evolution. This curious and unexpected 
 result of English judges being greater conservators of ancient 
 ritual law than native judges even of the most orthodox type 
 would be, has been noticed both by Mr. J. D. Mayne and Sir 
 Henry Maine. " The pundit," writes Mr. J., D. Mayne 
 in his work on Hindu Law, " however bigoted he might be,
 
 327 
 
 " was at all events a Hindu, living amongst Hindus and 
 " advising upon a law whioli actually governed the every day 
 " lives of himself and his family and his friends. He would 
 " torture a sacred text into an authority for his opinion, 
 " but his opinion would probably be right though unsustained 
 " by, or even opposed to, his text. With the English judge 
 " there was no such restraining influence. He was sworn to 
 " administer Hindu law to the Hindus and he was determined 
 " to do so however strange or unreasonable it might appear." 
 As regards the arrested development of the Hindu law as 
 administered in South India, Mr. Mayne goes on to remark : 
 " The fact really was that the law had outgrown the authori- 
 " ties. Native judges would have recognised the fact ; English 
 " judges were unable to do so, or else remarked ("to use a 
 " phrase I have often heard from the Bench) ' that they were 
 " ' bound to maintain the integrity of the law.' This was a 
 " matter of less importance in Bengal, where Jimuta Valiana 
 " had already burst the fetters. But in Southern India, 
 " it came to be accepted, that the Mitakshara was the last 
 " word that could be listened to on Hindu law. The conse- 
 *' quence was a state of arrested progress in which no voices 
 " were heard except those which came from the tomb. It 
 " was as if a German was to administer English law from the 
 " resources of a library furnished with Fleta, Glanville and 
 " Bracton and terminating with Lord Coke." Judicial legis- 
 lation to adapt the law to changing circumstances being then 
 not possible, the only alternative is positive legislation. But 
 how is the Government to know when legislation can be 
 safely undertaken and when it ought to be avoided on 
 the ground that it will run counter to the sentiments of the 
 people afiected by it ? On the one hand, if the Government 
 were to refuse altogether to legislate in matters affecting 
 social usages, domestic life and laws of inheritance, it would 
 injure the community in two ways, viz., first by setting 
 in motion strong forces which have the effect of unsettling 
 the old state of society and disturbing the relations which 
 subsisted ; and secondly, by depriving the society of its capa- 
 city for adjusting its institutions to its requirements and 
 refusing to do wha-t is necessary by positive legislation. 
 This state of things must seriously arrest the progress of the 
 community. " Social necessities and social opinion," observes 
 Sir H. Maine, *' are more or less in advance of law. We may 
 " go indefinitely near to the closing of the gap between them, 
 " but it has a perpetual tendency to re-open. Law is stable ; 
 " the societies we are speaking of, progressive. The greater 
 *' or less happiness of a people depends on the degree of
 
 328 
 
 " promptitude with whicli the gulf is narrowed." On the 
 other hand, a foreign legislature has to be extremely cautious 
 in interfering by legislation with cherished institutions affect- 
 ing the every day domestic life of the people, as any hasty or 
 ill-judged action in this direction is likely to cause great 
 discontent and suffering. The only way in which the Gov- 
 ernment can ascertain whether it can legislate with safety 
 in matters of this kind is by making it a necessary condition 
 for legislative action that the demand for legislation should 
 come from local bodies more or less representative of the 
 classes of the community whose interests are affected by such 
 legislation. 
 
 117. That the above remarks are not merely theoretical 
 . , , will be seen from a consideration of the 
 
 Difficulties in dealing . , i ^ -,i i^ ii 
 
 with legislation affect- circumstances Connected with the three 
 ing social usages iiius- \)\\\^ affcctiuQ: the laws relating to Mar- 
 
 trated by proiects for . n • i •, i r- ,i 
 
 legislation before the riagc and inheritance now betore the 
 Madras Legislative Madras Legislative Council. One of these 
 bills is intended to provide a legal form of 
 marriage to the Hindus in the Malabar country who follow the 
 Marumakkatayam or nepotismal rule of succession as regards 
 inheritance. The second has, for its object, the settlement 
 of the law regulating the succession of self -acquired property 
 under the general Hindu law and of moot questions as to 
 the circumstances under which the earnings of a member of 
 joint Hindu family shall be considered his self-acquisition 
 and when they shall be regarded as family property. The 
 third bill is intended to give to the sister and sister's son a 
 higher place in the line of succession prescribed by the 
 general Hindu law as understood to prevail in this presi- 
 dency than they at present occupy. I do not wish to 
 express any final or decisive opinion in regard to the 
 necessity for the legislation proposed, but will explain the 
 great difficulty which the Government has in dealing with 
 questions of this kind. 
 
 On the question of prescribing a legal form of marriage 
 to the community governed by the Marumakkatayam law, no 
 stranger to the community, which is to be affected by the 
 proposed legislation, has any right to dogmatise. " There 
 " is no subject," remarks Sir Henry Maine, " on which it is 
 " harder to obtain trustworthy information than the relations 
 " of the sexes in communities very unlike that to which the 
 " enquirer belongs. The statements made to him are apt to 
 " be affected by two very powerful feelings, the serse of shame 
 " and the sense of the ludicrous, and he himself nearly always
 
 329 
 
 *' sees the facts in a wrong perspective. Almost iunumer- 
 "able delusions are current in England as to the social 
 *' condition, in regard to this subject, of a country so near to 
 *' us in situation and civilization as France." These remarks 
 are profoundly true of Malabar, and if I allude to this sub- 
 ject at all, it is not because I am not conscious of my unfitness 
 to pronounce any opinion on the question, but merely to show 
 how extremely difficult and delicate it is for Government to 
 deal with such questions. In the Malabar country, the Maru- 
 makkatayam law does not recognize the institution of mar- 
 riage, though the unions of men and women are practically 
 permanent, being regulated by social opinion ; and a high 
 state of civilization has been found compatible with this con- 
 dition of things. The inheritance of property descends in 
 the female line. Property is held jointly by families consist- 
 ing of members belonging to several generations despotically 
 governed by the eldest male among them, the junior mem- 
 bers being entitled to a bare maintenance. This archaic 
 type of society has subsisted so long, because Malabar 
 was till within recent times shut off from the other parts 
 of the continent of India by the difficulty of communica- 
 tion ; women especially were strictly forbidden to cross the 
 frontiers of the country, and even the boundaries of recog- 
 nised sub- divisions of it. Facilities of locomotion and free 
 intercourse with the people on the East Coast and the ideas 
 of personal liberty and independence engendered by the 
 operation of the British system of law and the diffusion of 
 English education are, however, now rapidly undermining 
 the foundations on which the fabric of society rests. The 
 implicit obedience paid by the junior members to the head of 
 the family is diminishing in force every day. The junior mem- 
 bers themselves, who, under the old conditions, would never 
 have left their tarwads, go for education to distant places like 
 Madras, or even England in a few cases, or are employed 
 in Government service or as Vakeels, and while so employed, 
 take their wives from their tarwad homes to live with them. 
 The result is a closer feeling of sympathy and affection for 
 their wives and children, and a correspondingly diminished 
 regard for the interests of their sisters and their children, 
 both on the part of the head of the family, and on the part of the 
 junior members. A strong feeling is also growing up among 
 those who have had the benefit of English education, that 
 the non-recognition by law of the relationship of wife and 
 children and of the claims to support and education founded 
 on such relationship when voluntary provision for such pur- 
 poses fails 'owing to accidents, and other means of support 
 
 42
 
 330 
 
 are not available, is a great social injustice. The class that 
 feels in this manner, though numerically small, is an in- 
 fluential one growing in intelligence and importance day by 
 day. The fact of the laws of devolution of property running 
 counter to natural sentiment must necessarily lead to the 
 adoption of devices to counterwork it, giving rise to litiga- 
 tion among members belonging to the same family, and to 
 dissipation of the family propei'ty which it is the object of 
 the tarwad system to preserve intact. The State is also 
 interested in seeing that the institutions of society are so 
 modified as to ensure that the care, nurture and education of 
 the young, according to modern requirements — matters in 
 which it is deeply interested — are entrusted to those who 
 may be trusted under the impulse of natural sentiment to 
 aischarge the duties with the greatest fidelity and to be 
 likely to submit to great personal sacrifices in the attain- 
 ment of this object and not to those who in the majority of 
 cases will be content to do the minimum that they are bound 
 legally or by social opinion to do. This is one side of the 
 case. On the other side, it has to be remembered that the 
 existing institutions have struck their roots so deep in the 
 past, affect so many relations of life and the subsistence of 
 such large numbers of persons, that any sudden modification 
 of them is likely to give rise to many unexpected evils, dis- 
 appoint many just expectations and cause suffering and 
 widespread discontent. The Government cannot possibly, by 
 enquiries by means of commissions and such like bodies im- 
 provised for the time, be able to determine in projects for 
 legislation of this kind, having such wide-reaching issues, 
 whether after balancing the conflicting considerations, the 
 gain to the community is suflficiently great to justify legis- 
 lation and if legislation is resolved on, what precautions shall 
 be taken to minimize the evils of the change. Even where 
 the gain is beyond question, the feeling of the community 
 itself as to the necessity for legislation is a factor which 
 must necessarily be taken into account. 
 
 Legislation, then, in such cases can only be carried out 
 in a spirit of compromise and should provide for a gradual 
 modification of the institutions found unsuitable without 
 causing any violent breach of social continuity. For work 
 of this kind, the provincial legislature composed, as it must 
 be, of members, the majority of whom are of diiferent habits 
 and ways of thinking from those whom the proposed legis- 
 lation is to affect, must be entirely unsuited, unless it is aided 
 in its deliberations by other bodies constituted by law and 
 composed in the main of members belonging to' the commu-
 
 331 
 
 nity whicli is affected by the legislation. In the case imme- 
 diately under discussion, the Hindu members of the Local 
 Fund Boards in the Malabar district might be regarded as a 
 legally constituted standing committee for the consideration 
 of questions as to the expediency of undertaking legislation 
 of this character. Members of the community who feel keenly 
 the evils of the present state of the law as regards marital 
 relations and wish for a reform should be at liberty to bring 
 the question before the committee. If they did not succeed 
 in getting a majority of the committee to pass a resolution, 
 making a demand on the legislature for legislation, that would 
 be proof of the fact that the time was not ripe for carrying 
 out the contemplated reform. Those interested in the reform 
 would not, however, be discouraged by a single unsuccessful 
 effort ; they would try to educate public opinion on the sub- 
 ject, and endeavour to get persons elected as members of 
 Local Fund Boards who would support the cause of reform, 
 and they would bring the question again and again before the 
 committee. In course of time if the reform was a desirable 
 one, the good sense of the community would prevail even 
 over deep-rooted prejudices and the reform party would 
 doubtless be able to get a majority of the committee to 
 make a demand on the legislature. If the majority was a 
 narrow one, the Government might still consider it unsafe to 
 undertake legislation until the will of the more enlightened 
 and influential portion of the community had more unmis- 
 takably declared itself. If after further lapse of time the 
 demand was made by a large majority of the committee, 
 the Government would be in a position to undertake legis- 
 lation with confidence. It is true that there is nothing to 
 prevent voluntary associations formed with a view to promote 
 particular objects, petitioning Government for legislation for 
 carrying out those objects, but such associations cannot 
 command the same confidence as Local Fund Boards having 
 a legal status, and further it would be impossible to gauge 
 the relative strength of rival voluntary associations and 
 determine how far each represented the feelings and wishes 
 of the community. In matters affecting the community as 
 a whole, the whole Board would represent the community, 
 and in cases where the interests of particular sections of 
 the community were concerned, the committee composed of 
 members belonging to such sections would have these powers. 
 The right conferred on these Boards of discussing such ques- 
 tions would infuse life and spirit into them, and they can, if 
 necessary, be enlarged so as to secure adequate representa- 
 tion of different sections of the community. A very great
 
 332 
 
 advantage of this system would be that a legal machinery 
 would be provided for educating local public opinion in 
 favour of legislation affecting social ^^^ relations. 
 
 lis. In the above remarks I do not by any means wish to 
 „ ^, , isrnore the unequal advance in knowledge 
 
 Further remarks o ^ o .i i i- r t-r ' 
 
 regarding legislation on and intelligence Oi the popuJatiou OI dll- 
 sociai matters, &c. fercut parts of tl;ie Presidency and of the 
 
 consequent improbability of the Local Fund Boards in some 
 parts being able to discuss questions as regards legislation 
 with intelligence and to arrive at a correct opinion regarding 
 them. I can only reply that what I have stated is the ideal 
 to be aimed at and gradually worked up to, and that the ar- 
 rangements made at the outset should be such as will allow 
 of Boards which are sufficiently advanced to deal with such 
 questions. The more advanced parts of the country ought 
 to be allowed their legitimate influence in raising up the less 
 advanced parts and not be compulsorily kept at the level of the 
 latter. And after all, the arrangements are intended merely 
 to enable Government to determine whether legislation on 
 matters affecting social usages can be undertaken with safety ; 
 the final responsibility for undertaking or refusing legislation 
 will still rest with Government. The Local Fund Boards 
 will in fact be constituted bodies which have limited execu- 
 tive powers in certain directions to act of their own autho- 
 rity, but possessing unlimited powers for making representa- 
 tions on all other matters of general administration, the final 
 decision of which is vested in the central Government. 
 
 119. There is one other subject which may be appropri- 
 ately noticed here, viz., the unsatisfactory 
 
 Unsatisfactory state , , c ,-i -t tii j 
 
 of the law relating to stato 01 the law regarding the management 
 native religions endow- Q,Jid supcrvisiou of rcHgious endowments 
 and the urgent necessity for reform in this 
 direction. There is here an immense national property which, 
 in course of time, might be devoted to many beneficial pur- 
 poses, such as provision of religious instruction, of art edu- 
 cation, &c., and which is now largely misappropriated. One of 
 . the most popular acts of Government would be to provide for 
 the efficient supervision of the management of these properties 
 to ensure their being devoted in the main to the uses for which 
 they were intended, by means of responsible committees which, 
 without doing violence to public feeling, would be able gradu- 
 ally and insensibly to introduce such changes as would tend to 
 
 '^^ The second and third bills relate to complicated questions of Hindu Law, a 
 discussion of which will take up more space than can be afforded here, and I have 
 therefore merely contented myself with alluding to them.
 
 m 
 
 the removal of abuses which have grown up around religious 
 institutions and to afford education to the people in directions 
 which Government arrangements cannot reach. The annual 
 income of the religious endowments has been estimated to 
 amount to 75 lakhs of rupees, a sum higher than the income ol 
 the Local Fund Boards and Municipalities in the Presidency, 
 and a considerable portion of the income is contributed by the 
 State. That this income should be misappropriated to private 
 uses is a melancholy waste of resources ; and it is futile to 
 ezpect that the worshippers at the shrines, scattered as they 
 are throughout the Presidency, would come forward and em- 
 bark in expensive litigation with trustees of endowments who 
 have command of trust money. The enactment of a law which 
 will provide an efficient control of these public trusts will be 
 welcomed as a great ^^^ boon by the general public. 
 
 CONCLUDING REMARKS. 
 
 120. I have endeavoured in the foregoing pages to point 
 out the directions in which the country has progressed during 
 the last forty years, the special evils which the transition 
 from the old to the new state of things has given rise to, and 
 some of the measures which might be taken by Government 
 to remedy or mitigate the effects of these evils and secure 
 unfettered economic development. I will now close my long 
 review with a few general remarks in regard to the con- 
 siderations to be borne in mind in estimating the value of the 
 results achieved. 
 
 The first point to be noted is the disordered state of the 
 country which had to be reduced to order and fitted with 
 the apphances of civilization and regular administration, and 
 the low economic condition from which the great mass of the 
 population had to be elevated. We saw how, in the beginning 
 of the century. Southern India had been devastated by wars, 
 famines and bands of plunderers; the cultivating classes were 
 
 '^■' The question of the duty of the State to make adequate provision for the supervision 
 of the management of public endowments whether devoted to secular or religious uses is too 
 intricate to be usefully discussed here, and I have therefore made a few brief remarks 
 as to the public feehng on the subject. 1 have given in the appendix VI.-F. extracts 
 from the remarks of Sir Alfred Lyall in regard to the political inexpediency of Govern- 
 ment relinquishing its right to provide for the election of the heads and managers of 
 religious endowments, and to declare in case of dispute who shall be regarded as properly 
 elected as such heads and managers, referring, if need be, persons who contest the decision 
 to establish their contention in the courts. In the same way, the Government should 
 have the right to license new places of public worship and regiilate religious processions 
 to prevent the rival religious communities coming into collision with each other. The 
 state of the law on this subject is vague and uncertain and leads to collisions which might be 
 prevented. The exercise by Government of powers vested in it with a view to ensure 
 rival religious cc*nm unities living in peace without coming into dangerous collisions with 
 one another is no breach of the principle of religious neutrality. 
 
 43
 
 334 
 
 ground down by oppressive taxation, by the illegal exactions 
 of tlie oflScers of Government, of the renters employed to 
 collect the Government dues, and of the sowkars without 
 whose assistance the ryots could not subsist and carry on 
 their calling and who kept them in a state little removed 
 from that of perpetual bondage ; trade was hampered by 
 insecurity of property, defective communications and onerous 
 transit duties ; the vast majority of the population suffered 
 extreme hardships when there was even a partial failure of 
 crops in small tracts, owing to the great diflSculty and cost of 
 obtaining supplies of grain from more favored regions ; the 
 peasantry and even possessors of considerable landed pro- 
 perty when not holding offices under Government themselves 
 were cowering before the pettiest Government officer and 
 submitting to tortures and degrading personal ill-treatment 
 inflicted on the slightest pretext ; persons who had chanced 
 to acquire wealth, if they belonged to the lower classes, dared 
 not openly use it for purposes of enjoyment or display for 
 fear of being plundered by the classes above them ; the 
 agricultural classes as a whole had few wants beyond those 
 imposed by the necessity for bare subsistence, no ambition 
 or enterprize to try untrodden ways, and no example to 
 stimulate them to endeavour to better their condition, while 
 the rigid rules and usages of castes and communities in 
 which society was organized repressed all freedom of action 
 and restricted the scope for individual initiative. To under- 
 stand the full significance of the change which has come over 
 the country one has to contrast what he sees at present, 
 unsatisfactory as it may appear from some points of view, 
 with the state of things described above. 
 
 Secondly, it must be remembered that considerable por- 
 tions of the country are liable to frequent droughts and occa- 
 sional famines, which no human foresight can prevent, and 
 that the results of several decades of good administration are 
 liable to be suddenly swept away by the occurrence of one 
 of these terrible visitations. The famine of 1876-77 is a case 
 in point. It was the severest in magnitude and duration of 
 any known during the present century ; but it is satisfac- 
 tory to find that the districts affected by it have recovered 
 more rapidly than those afi'ected by the famine of 1833, 
 which prevailed in a smaller tract of country and was of 
 shorter duration. The development of communications since 
 1877 has also greatly mitigated the effects of temporary 
 scarcities. This is illustrated in a remarkable manner by 
 ■what has happened during the last two years. The railway
 
 336 
 
 from Chittoor to Vdyalpdd and Dharmavaram was opened 
 in February and March 1892. There was a gi^eat drought 
 and failure of crops in those places at the time, and prices of 
 food-grains were ruling very high ; but as soon as the railway 
 was opened prices fell at once largely. The last season was a 
 splendid one in most parts of the Ceded districts and ryots 
 had a bumper crop, while in the southern districts, viz., 
 Madura and Tinnevelly, there was failure of harvests. Large 
 quantities of rice from Dharmavaram were exported to 
 Tinnevelly for the first time within the memory of the ryots 
 of the former place, bringing them a large profit* If a 
 famine, such as that of 1876-77, should again unfortunately 
 occur, its effects will not be as disastrous as on the last 
 occasion, though in any case it would cause great suffering. 
 If, however, by some unfortunate combination of circum- 
 stances famines should occur in quick succession, no amount 
 of good administration could make head against such calami- 
 ties. On the other hand, if there is no famine of a very severe 
 type for the next half a century, the measures in progress 
 would have had time to produce their effect and the suffering 
 caused by failure of crops over large areas in consecutive 
 years would not probably be much greater than in European 
 countries. 
 
 Thirdhj, we have to take into account the limitation to 
 the action of Government imposed by the necessities of the 
 situation, in considering the rate of progress. The zemindars 
 and poligars were most of them the terror of the country in 
 the beginning of the century, and they were with difficulty 
 reduced to submission. To have utilized them for purposes 
 of government would have been dangerous and would have 
 indefinitely postponed all chance of introducing regular and 
 orderly government. They were accordingly relegated to 
 the position of mere landholders with no part or lot in the 
 government of the country. The recognition of caste and 
 village assemblies for purposes of administration of justice 
 was likewise impossible, as owing to the innumerable sub- 
 divisions of castes it would have been a matter of extreme 
 difficulty to decide as to the persons over whom the assem- 
 blies had jurisdiction, and moreover this plan would not 
 answer in cases in which the contending litigants belonged to 
 different castes and would have perpetuated the feuds between 
 them. The decision of disputes by punchayets when the liti- 
 gants were willing to abide by their decisions was provided 
 for, but this arrangement was seldom availed of and the law on 
 the subject *was practically a dead letter. The whole work 
 of Government had, therefore, to be conducted by a hierarchy
 
 3^ 
 
 of officials. At the same time, owing to wide differences in 
 religion, civilization and social usages between the rulers 
 and the ruled, all institutions having living connection with 
 matters which are intimately bound up with the daily life of 
 the people had to be rigidly excluded from official cognizance. 
 The Government could not, as it were, take the people by the 
 hand and by intimate association with them lead them on in 
 the path of progress. It had to stand aloof, contenting itself 
 with providing the material appliances of civilization and with 
 clearing away all obstructions to progress trusting to the 
 influence of education to work out such changes as the healthy 
 progress of the society might require. 
 
 Fourthly, we saw that some of the evils which have been 
 felt under the new regime, " the tares," as they are called, 
 " which have grown up with the wheat, " are either not 
 new or are sacrifices without incurring which the benefits 
 could not be secured. For instance, take the case of the 
 growth of agricultural indebtedness. As a matter of fact, 
 the ryots were formerly much more in the hands of sow- 
 kars than now, though their indebtedness as expressed in 
 money value appears to be greater now than before. The 
 dependence of the ryots on sowkars is greatest in tracts of 
 country in which the seasons are very uncertain. Formerly 
 when lands had no value, the ryot's credit was limited to the 
 value of the year's crop, and if the crop failed for two or 
 three years and the sowkar stopped supplies, there was 
 nothing between the ryot and starvation. Now the increased 
 credit of the ryot enables him to obtain better terms and 
 hold out longer. The more prudent among the ryots have 
 now a chance of making use of their credit for their own 
 advantage, and even those who recklessly pledged it would be 
 in no worse condition than they would have been under the old 
 conditions. Again, the tendency of a regime favoring industrial 
 improvement is to prevent the military, official and sacer- 
 dotal classes from intercepting the earnings of the laboring 
 classes. The result is that the production of articles of luxury 
 or art which ministered to the gratification of persons who were 
 maintained in great opulence at the expense of the general com- 
 munity suffers and must necessarily do so until the industrial 
 classes themselves become sufficiently rich and acquire a taste 
 for such luxuries. Similar considerations apply to economic 
 redistribution of productive powers and resources. The intro- 
 duction of railways, for instance, by superseding less efficient 
 means of conveyance must cause suffering to the classes 
 who make a living by rendering services in connection with 
 the latter. We thus hear that the extension of the railways in
 
 337 
 
 • 
 
 the Punjab has caused distress to camel drivers. A diversion 
 of trade is also often caused, from particular localities or tracts 
 of country, and places which were once prosperous decay 
 and new places spring up in their stead. Walla jahnugger, 
 for instance, which was once a place of great importance 
 as an emporium of trade is now much decayed. The facilities 
 of intercommunication between different parts of the country, 
 and the rapid diffusion of information as to the conditions of 
 the market as regards demand and supply of commodities by 
 means of telegraph render the maintenance of central depots 
 to some extent unnecessary, the dealers in commodities being 
 enabled to communicate directly with the producers in the 
 rural tracts. There is thus increase of trade in the country as 
 a whole, while there may be a diminution in some of the 
 centres. And, generally, in gauging the extent of improve- 
 ment it would not be right to confine our attention exclusively 
 to special localities or classes, but the entire industrial field 
 should be taken as a whole. 
 
 Fifthly, it must be borne in mind that by improvement 
 here referred to must be understood the development of an 
 industrial regime, and that the motive power under it being the 
 multiphcation of wants and the stimulus given to exertion by 
 the necessity for gratifying them, the dissatisfaction with 
 one's lot that is beginning to be generally felt is in this 
 case a sign of progress and not of deterioration. There 
 is, undoubtedly, increasing pressure felt by the community as 
 a whole, because wants have been increasing faster than the 
 means of satisfying them. At the same time the wants could 
 not increase unless the means increased also. It is this in- 
 creasing pressure that makes it difficult for people in general 
 to believe that they are making headway, but the real fact is 
 that they are somewhat richer in life from an industrial 
 point of view and their ideal of comfortable existence, is gradu- 
 ally expanding though they may be poorer in contentment. 
 A landholder who would have lived in a simple contented wa,y 
 40 years ago, giving his boys no education, and marrying his 
 daughters to village boors provided they had a sufficiency to 
 live upon, requires better house accommodation and more 
 comforts, wishes to give his boys an expensive English 
 education and to marry his daughters to educated husbands 
 and finds it a hard pull to arrange for all this; and the 
 very pressure impels him to make increased efforts to increase 
 his means. This result is seen in a district like Tanjore 
 where of brothers in a family who would formerly have lived 
 in their villages in their poor contented way on their patri- 
 mony, several leave the villages and seek employment in
 
 338 
 
 • 
 
 other distant districts. It is true that the wants developed 
 are not always of a wholesome kind, and this is generally the 
 case when means increase faster than education and taste 
 for rational modes of enjoyment. But the first condition 
 necessary for progress is the increase of wants and when 
 once the desire for improvement is excited, the wants can 
 be regulated by education. For instance when in the sixties, 
 owing to the cotton famine in England and other causes, 
 the ryots in several districts realized large profits, they in- 
 creased their style of living and spent large sums of money 
 on marriages and festivals. When prices fell, however, they 
 had to cut down expenditure on purposes of mere show, 
 retaining what was necessary for substantial comforts. It is 
 doubtless true that in European countries the evils of the 
 industrial regime in the form of undue concentration of wealth 
 making " the rich grow richer and the poor poorer " and of 
 the exploitation of labour by capital have been forcing them- 
 selves on public attention, but in this country the conditions are 
 altogether different. Though the old regime of status is now 
 being replaced by a regime of competition, the transition has 
 been rendered gradual and easy by the tenderness shown to the 
 rights and interests of the lowest classes under the influence 
 of the humanitarian sentiment which is the characteristic 
 feature of the nineteenth century and to which the essentially 
 just and beneficent policy of the British Government in India 
 owes its origin. As we have already seen, the tendency till 
 now in this country has been towards not so much undue 
 concentration of wealth as its diffusion exhibiting itself in 
 the gfradual formation of a middle class between the small 
 class of persons who were once immensely rich and who find 
 their hereditary influence and wealth fail them when not 
 supported by individual worth and personal exertions, and 
 the great mass of the population which has always been in a 
 state of great poverty ; and owing to this, while perhaps the 
 increase of wealth may go on at a slower rate, it may be that 
 we shall never have to feel the evils of unequal distribution 
 of wealth in the acute form in which they have appeared in 
 European countries. 
 
 Bearing, then, these considerations in mind and remem- 
 bering that methods of progi'ess calculated to evoke national 
 feeling and religious enthusiasm are unavailable under the 
 conditions of the case, the progress that has been made under 
 the new regime during the short time that it has been in force 
 — fifty years is a brief interval in the life of a people — 
 is little short of marvellous. Some of the evils \^hich have 
 appeared and the remedies for them we have already noted,
 
 339 
 
 What lias been accomplished has been effected chiefly by pro- 
 viding the country with the material appliances of civiliza- 
 tion, by clearing the ground of all obstructions to progress 
 and by making it possible for people to take interest in public 
 affairs outside the narrow limits of castes and creeds into 
 which they are divided. What requires to be done is 
 gradually to widen the foundations of local government and 
 make it strike deeper roots into society, so as to enable it to 
 adjust its institutions to its needs as they arise, without 
 weakening in any way the power of the central Government 
 for maintaining the due balance between rival interests and 
 creeds and for interfering effectually when there is danger of 
 such balance being disturbed. And this work will need even 
 greater foresight and statemanship for its successful accom- 
 plishment than in the past. There is, however, no reason 
 whatever to suppose that either the Government or the 
 people will fall short of requirements in this respect. As 
 regards the Government, the work already accomplished 
 lyider enormous difficulties, as narrated in the foregoing pages 
 is a standing testimony in its favour. The quickness with 
 which the people have adapted themselves to the new regime 
 affords also every ground for hope that they might be trusted 
 to assimilate the elements of progress even more rapidly 
 in the future. I remember that twenty years ago, com- 
 plaints were very general that laws were being passed with 
 bewildering rapidity, that society was being shaken to its 
 foundations and that social relations were being loosened to 
 an undesirable degree. Now the feeling among the educated 
 classes, daily growing in importance and numbers, is that 
 progress does not proceed fast enough, just in the same way 
 as persons who were content to travel two miles an hour by 
 country carts thirty or forty years ago consider it a hardship 
 now to travel by slow railway trains moving at the rate of 15 
 miles an hour. 
 
 Whatever might be the feeling of persons who forgetting 
 the evil side of the old type of society and its injustice to the 
 lowest classes, shutting out all prospect of improvement from 
 them, are fascinated by its stationary civilization, ordered re- 
 lations, and freedom from worry, those who beUeve in the 
 modern principle of progress and in the necessity for giving 
 free play to individual energy have no reason to look on the 
 future in a spirit other than that of thankfulness and hope. 
 To those again who are inclined to under-value the progress 
 made und^r the mistaken idea that thereby they would be 
 calling attention pointedly to the evils that now exist in order
 
 340 
 
 that great exertions might be put forth to uproot them, 1 
 would reply in the following words of Mr. Marshall from 
 whose invaluable work I have so often quoted : 
 
 " There is a strong temptation to overstate the economic 
 evils of our own age, and to ignore the existence of similar 
 and worse evils in earlier ages ; for by so doing we may for 
 the time stimulate others, as well as ourselves, to a more 
 intense resolve that the present evils shall no longer be 
 allowed to exist. But it is not less wrong and generally it is 
 much more foolish to palter with truth for a good than for 
 a selfish cause. And the pessimist descriptions of our own 
 age, combined with romantic exaggerations of the happiness 
 of past ages, must tend to the setting aside of methods of 
 progress, the work of which, if slow, is yet solid ; and to the 
 hasty adoption of others of greater promise, but which re- 
 semble the potent medicines of a charlatan, and while quickly 
 effecting a little good, sow the seeds of wide-spread and last- 
 ing decay. This impatient insincerity is an evil only less 
 great than that moral torpor which can endure that we, with 
 our modern resources and knowledge, should submit patiently 
 to the continued destruction of all that is worth having in 
 multitudes of human lives, and solace ourselves with the 
 reflection that anyhow the evils of our own age are less than 
 those of the past." 
 
 To the considerations pointed out by Mr. Marshall may 
 be added as regards this country the mental distance owing 
 to differences of race, of social usages and civilization be- 
 tween the Government and the people and the necessity for 
 the Government understanding rightly the difficulties of the 
 people, and for the people appreciating the good work done 
 by Government so as to secure their cordial co-operation 
 in measures tending to the advancement and welfare of the 
 country. Full knowledge of either of the difficulties of the 
 other can only arise from sympathy, while sympathy must in 
 its turn result from knowledge. The object I have proposed 
 to myself in writing this humble work of mine is to contri- 
 bute in some measure to the bringing about of such a mutual 
 understanding.
 
 A.PPENDIOES,
 
 SECTION I.— THE STATE OF THE COUNTRY 
 AND THE CONDITION OF THE PEOPLE IN FOEMER 
 
 CENTURIES. 
 
 (A.) — Sketch of the Dynasties of Southern India extracted from '* Lists 
 of Antiquities, Madras," by Mr. R, Seivell, M.C.S. 
 
 In the earliest days of which we have any knowledge as to the 
 sovereignties ruling the Continent of India, it appears that the great 
 Maurya dynasty held the north, while the south was divided amongst 
 the Pandiyans of Madura, who governed the extreme south, the Cholas, 
 who held the country to their north and east, and the Cheras (Keralas), 
 who ruled over the tracts to their north and west. This was in the 
 fourth century B.C. I say " it appears " because, although we are 
 certain of the Mauryas (probably B.C. 325 — 188) and the Pandiyans 
 as existent in the time of Megasthenes (B.C. 302), we have only the 
 fact of the Cholas and Keralas (or Cheras) being mentioned in the 
 inscriptions of Asoka (B.C. 250) to verify their existence at that still 
 earlier period. But tradition mentions no earlier kingdoms than those 
 of Pandiya, Chola and Chera in the south of India, and always speaks 
 of them as contemporary. As we are certain of the Pandiyan, there- 
 fore, in B.C. 302, we may safely place the Cholas and Cheras as far 
 back as that date. The Keralas appear to have occupied the whole 
 Western Coast under the ghats, and it is probable that the Eastern 
 Coast was also inhabited almost throughout its entire length ; but there 
 is no evidence of any kingdom having been in existence throughout the 
 Dakhan, and it is quite possible that almost the whole of its entire 
 area was waste (the Dandakaranya) or inhabited only by a few half-wild 
 tribes under their own chiefs, such as those so often mentioned in the 
 Puranas. It is necessary for students of history to remember that 
 very large areas now cultivated and populated were absolutely waste — 
 mere barren tracts of rock, forest, and wild plains — till comparatively 
 modern times, and this seems especially to have been the case with the 
 Dakhan country. It must not be forgotten, however, that the earliest 
 Buddhist legends speak of the Kingdom of Kalinga as then in 
 existence. 
 
 At some period subsequent to that of Asoka, the Pallavas appear to 
 have grown into importance on the Eastern Coast, and they gradually 
 increased in power till they constituted themselves a great kingdom, 
 with extensive foreign trade, and proved a source of danger to the 
 Cholas and their other neighbours. They appear to have held the 
 entire Eastern Coast from Conjeeveram to the borders of Orissa. 'At 
 present there is no evidence as to when they arose from obscurity into 
 the dignity of a kingdom, but they seem to have been one of the 
 principal southern powers when the first Chalukyas immigrated from 
 Northern India about the fifth century A.D,
 
 To the Mauryas in the north succeeded the Sanga dynasty (B.C. 
 188 — 76) and this was followed by the short Kanva dynasty (B.C. 76 — 
 31). The last of these kings being murdered, the Andhra or Andhra- 
 britya dynasty succeeded, and ruled from B.C. 31 to A.D. 436. They 
 were Buddhists, and it was by them that the magnificent marble stupa 
 at Amaravati was erected. About this period, «.e., the fifth century 
 A.D., began to grow into importance the Chalukyan sovereignty of the 
 Western Dakhan, and it is in connection with the early Chalukyas that 
 we hear of the Nalas (probably a Western Coast tribe), the Mauryas 
 (possibly descendants of the earlier Mauryas) who inhabited part of the 
 Konkana, the Sendrakas, Matangas (apparently a barbarous tribe, 
 j)erhaps aboriginal), the Katachchuris, the Grangas of Maisur, and the 
 Alupas or Aluvas, a tribe or dynasty apparently living to the south or 
 south-west of the present Bombay Presidency. Early Chalukyan grants 
 mention a number of other tribes* such as the Latas (of Latadeia in the 
 north of Bombay), Malavas (of Malwa), Gurjaras (of Q-uzerat), &c. 
 
 The Chalukyas divided into two branches in the beginning of the 
 seventh century, an eastern branch conquering the Pallava kings of 
 the Vengi country, or tract between the Krishna and G-odavari rivers, 
 and settling in that locality which they governed till A.D. 1023, the 
 western remaining in their original home in the Western Dakhan. 
 
 The Chinese pilgrim Hiouen Thsang, who visited India, A.D. 629 
 to 645, gives a graphic account of the state of the country in his time. 
 
 The Kadambas now began to grow ijito importance, and they 
 fought with and defeated the Pallavas of Kanchi and were perpetually 
 at feud with the Chalukyas and their other neighbours. Their territory 
 was in the south-west Dakhan and north Maisur. About the same 
 period we find the Rashtrakutas giving great trouble to the Chalukyas. 
 It is as yet uncertain whether these Rashtrakutas were " an Aryan 
 Kshatriya, i.e., Rajput, race which immigrated into the Dakhan from 
 the north like the Chalukyas or a Dravidiyan family which was 
 received into the Aryan community after the conquest of the Dakhan " 
 {Dr. Buhler). The wars with the Rashtrakutas seem to have resulted 
 in the complete downfall for two centuries (A.D. 757 — 58 to 973 — 74) 
 of the Western Chalukyas and the consequent accretion of great power 
 to the Rashtrakutas. The latter do not appear, however, to have 
 attempted any conquests in the south. They were completely over- 
 thrown by the Western Chalukyas in A.D. 973—74, when the latter 
 once more rose to great eminence. The overthrow of the Rashtrakutas, 
 too, enabled the Ratta Mdhdmandolesvaras to assert themselves, and 
 their dynasty lasted till about A.D. 1253. About the same period we 
 find the Silaharas and Sindas rising into importance, and, like the 
 Rattas, establishing independent dynasties which lasted for several 
 centuries. The Silaharas were overthrown by the Yadavas of Devagiri 
 about A.D. 1220, and the Sindas ceased to be heard of about A.D. 
 1182—83. 
 
 Little is known of the history of Southern India for two or three 
 centuries immediately preceding the sudden rise of the Cholas to great 
 power, which took place in the middle of the eleventh century. At 
 the beginning of that century the Eastern Chalukyas held all the
 
 country along the Eastern Coast from the borders of Orissa as far south 
 as the borders of the Pallava country. The Pallava kingdom was a 
 powerful one, possessing the coast from its junction with the Chalukyas 
 down to the northern border of the Chola territories, i.e., just south of 
 Kanchl. The Cholas remained within their own borders and the 
 Pandiyans in theirs, while the Kongu kings, who governed (apparently) 
 the old Chera country east of the Malayalam tracts along the coast, 
 although they were still independent and powerful, were beginning to 
 feel the effect of the attacks of the little kingdom of the Hoysala 
 Ballalas, then rising into power and destined to subvert many of the 
 surrounding monarchies. 
 
 In A.D. 1023, by an intermarriage between the two dynasties, the 
 Chola sovereign acquired possession of the whole of the Eastern 
 Chalukyan dominions. This was followed, apparently at the beginning 
 of the reign of his successor, Eajendra Kulottunga Chola (1064 — 
 1113), by the complete subversion of the Pallavas by the Cholas, and 
 the annexation to the latter kingdom of their possessions. Rajendra 
 also conquered the Pandiyans, and established a short dynasty of 
 " Chola-Pandiyan " kings at Madura. A little later the Hoysala 
 Ballalas entirely overthrew the Kongu kings and seized their territories, 
 so that the whole of the south of India passed at that time through a 
 period of great political disturbance, which resulted in the Cholas 
 obtaining almost universal sovereignty for a short period, checked, 
 however, by the power of the Hoysala Ballalas above the ghats in 
 Maisur. 
 
 This latter powder was increased in importance by its conquest of the 
 Kadambas and Kalachuris to its immediate north about the beginning 
 of the thirteenth centurj'-, and by the downfall of the great Western 
 Chalukyan dynasty about A.D. 1184, which was caused partly by its 
 wars with the Kadambas and partly by the rise of the Ballalas. A 
 little later the Cholas lost their northern possessions, which were seized 
 by the Granapatis of Orangal. 
 
 We now find ourselves in the thirteenth century, the three great 
 southern powers being the Cholas and Pandiyans — both seemingly 
 losing strength — and the Hoysala Ballalas, rapidly growing in power. 
 What might have occurred it is needless to enquire, though imagination 
 readily depicts the impetuous Ballalas sweeping down from the ghats 
 and succeeding in subverting the ancient dynasties of the plains ; but 
 a new power now appears on the scene, which was destined to acquire 
 universal dominion in course of time — the power of the Musalmdns. 
 
 Delhi had been captured by the Ghazni Ghorians in 1193, and a 
 dynasty established there which lasted till A.D. 1288. The Khiljis 
 succeeded (1288 — 1321), and Alau-d-din Khilji despatched the first 
 Muhammadan expedition into the Dakhan in A.D. 1306. Four years 
 later the Musalman armies under Malik Kafur swept like a torrent 
 over the peninsula, 
 
 Devagiri and Orangal were both reduced to subjection, the capital 
 of the Hoysala Ballalas was taken and sacked, and the kingdoms both 
 of the Cholas and Pandiyans w^ere overthrown. Anarchy followed 
 over the whole south — Musalmdn Governors, representatives of the old 
 royal famil^s, and local chiefs being apparently engaged for years in
 
 IV 
 
 violent internecine struggles for supremacy. The Ballalas disappeared 
 from the scene, and the kingdoms of Devagiri and Orangal were sub- 
 verted. A slight check was given to the spread of the Muhammadan 
 arms when a confederation of Hindu chiefs, led by the gallant young 
 Ganapati Raja, withstood and defeated a large Muhammadan army ; 
 and the aspect of affairs was altered by the revolt of the Dakhani 
 Musalmans against their sovereign in A.D. 1347, which resulted in thfe 
 establishment of the Bahmani kingdom of the Dakhan. But the whole 
 of Southern India was convulsed by this sudden aggression of the 
 Muhammadans, and all the old kingdoms fell to pieces. 
 
 This period, then, about the year A.D. 1310, is to be noted as the 
 second great landmark in South Indian history, the first being about 
 the period 1023 — 1070, when the Cholas became almost supreme over 
 the south. 
 
 While the Bahmani rebels were consolidating their kingdom in the 
 Dakhan, another great power was being formed south of the Krishna 
 This was the kingdom of Vijayanagar. Established on the ruins Ox 
 the Hoysala Ballalas and the other Hindu sovereignties, it speedily 
 rose to a height of power such as no southern kingdom had yet aspired 
 to, and it held the Muhammadans in check for two centuries. From 
 1336 till 1564 A.D. we have merely to consider, roughly speaking, 
 two great powers — that of the Musalmdns north of the Krishna and 
 that of Vijayanagar to the south. 
 
 The Bahmani kingdom fell to pieces at the close of the fifteenth 
 century, being succeeded by five separate kingdoms founded by rival 
 Musalman leaders. Their jealousies aided the Vijayanagar sovereigns 
 in their acquisition of power. In 1487 Narasimha of Vijayanagar 
 completely subverted the Pandiyan country, Chola having fallen long 
 before, and by the close of the fifteenth century the power of Vijaya- 
 nagar was acknowledged as paramount through the entire peninsula. 
 Small principalities existed, such as that of Maisur, the Eeddi chieftain- 
 ship of Kondavidu south of the Krishna (which lasted from 1328 till 
 1427), and the always independent principality of Travancore, but 
 Vijayanagar was supreme. At the beginning of the sixteenth century 
 Krishnadeva Ray a of Vijayanagar further extended the power of his 
 house by the reduction of refractory chiefs far and wide, till his 
 dynasty arose in his day to its greatest height of glory. 
 
 In 1564 (the third landmark) all this collapsed. The Muhammadan 
 sovereigns of the Dakhan combined, and in one grand effort swept over 
 Vijayanagar, sacked the capital, put to death the powerful chief who 
 had ruled over the destinies of the empire, and for ever crushed out all 
 semblance of independent Hindu power from the south of India. Even 
 the very family that governed Vijayanagar divided, so that it becomes 
 almost impossible to trace their history, and for a second time the whole 
 of the peninsula was thrown into confusion. 
 
 Naturally the minor chiefs seized this opportunity for throwing off 
 all fealty to their sovereign, and throughout the peninsula arose a 
 large number of petty Poligars and small chieftains, whose quarrels 
 and wars and struggles for supremacy kept the whole country in 
 confusion for two and a half centuries. The only chiefs that attained 
 to real power were the Madura Nayakkas, formerly Viceroys of
 
 Vijayanagar, who speedily became independent and reduced to subjec- 
 tion almost the whole of the old Pandijan kingdom, their compatriots, 
 the Nayakkas of Tanj ore, holding sway over Gholadesa. The Eajahs 
 of Maisur, too, became independent, and established a kingdom, though 
 not a very powerful one. 
 
 Over all this distracted country the Muhammadans gradually pressed 
 downwards, securing the dominion of the countries south of the Tunga- 
 badra, and eastwards to the sea, and encroaching southwards till they 
 had reached the southern confines of the Telugu country, by the middle 
 of the seventeenth century, and by the beginning of the eighteenth 
 were in power far south. The Mahrattas had established themselves in 
 Tanjore in 1674 and remained there till the English supremacy. In 
 1736 the Musalmdns obtained possession of Madura. 
 
 The English, settled at Madras since 1639, now began to acquire 
 more and more territory and power, and in the course of the century 
 had conquered almost the whole of the south of India, the defeat of 
 the Maisur Musalmdns under Tipu Sultan in 1799 finally laying the 
 peninsula at their feet. 
 
 (B.) — Orissa under Hindu and British Administrations. 
 
 Practically, the revenue-paying parts of Orissa under the Gangetio 
 dynasty stretched from the Hugli to the Chilka, and from the sea to 
 the Tributary States ; a compact territorial entity of twenty-four 
 thousand square miles. The province continues the same size to this 
 day, having lost three thousand square miles on the north, towards the 
 Hugli, and gained about an equal extent on the west, towards Central 
 India. In the twelfth century, when the Gangetic Line obtained the 
 kingdom, it yielded a revenue of £406,250 ^'^^ a year. Besides the 
 doubtful southern strip, they added 12,000 square miles of unproduc- 
 tive hill territoiy ; and when in the sixteenth century they sank beneath 
 the Musalmdns, the revenue remained about £435,000. An early 
 Muhammadan Geographer of the sixteenth century gives the income 
 of the parts of Orissa already subjugated by the Musalman arms at 
 £368,333 ^^^ ; and the ofiicial survey made by Abkar's Minister, Circ^ 
 1580, gives the entire revenue of the province, including the tribute 
 from the Hill States, at £435,319 ^2^. As the Muhammadans more 
 firmly established their power, they gradually increased the taxation, 
 and in the seventeenth century a detailed list of the Orissa fiscal 
 
 328_ 1,500,000 M&rhas of gold. See note 309, p. 316. That is to say at the clcse of 
 the Sivaite Dj'nasty. The area was only 11,000 square miles ; but of the territory since 
 added to it to make up the present province, about 12,000 square miles are Hill States 
 paying a tribute of only about £6,000 a year. The few hundred square miles added on 
 the north in Balasor are more productive, and the total revenue of the province may now 
 be put down at £4.50,000. 
 
 3" Sicca Es. 3,400,000, or Company's Rs. 3,683,333, Eaft Iklim, a Persian MS., apitd 
 Professor Blochmann. 
 
 ''^^ 160,733,237 ddme, which, at the official rates of conversion under Akbar, equal 
 Sicca Es. 4,018,330, or Company's Rs. 4,353,191. Prinsep's Tables; Thomas' Pathdn 
 Kings; As. Res.'XV.
 
 
 divisions shows a revenue of £537,495 ^^s. However the revenues 
 might be deranged from year to year by tumult or rebellion, the 
 nominal demand remained the same in the Imperial account books ; 
 and the Pere Thieffenthaler, amid the Mahratta anarchy of the 
 eighteenth century, was still informed that the province yielded 
 £570,750 330. 
 
 The revenue under the Gangetic line (1132 — 1532 A.D.), its last 
 independent dynasty, may therefore be set down at £435,000 a year 
 from the twenty-four thousand square miles of Orissa Proper. The 
 southern strip had long ceased to yield any income to the Orissa 
 kings. The present province, comprising an equal area, yields to 
 the British Grovernment, in round numbers, £450,000 ^^^. But while 
 the actual revenue remains about the same, its purchasing power 
 has completely altered. Under the native dynasty, it sufficed to 
 maintain a gorgeous court, a vast army, innumerable trains of priests, 
 and to defray the magnificent public works of the Grangetic kings. 
 Under the English it barely pays the cost of administering the province. 
 The charges for collecting the revenue and protecting person and 
 property amount to £33^,096 ; the interest on one of the local public 
 works, the Orissa canals, comes to £65,000 a year ^^^ ; a single native 
 regiment at Cuttack costs £17,000 ; and a petty balance of £28,000 is 
 all that remains over after paying the merely local charges of holding 
 the Province. Orissa contributes scarcely anything to the general 
 expenses of Government. It does not pay its share of interest on the 
 public debt ; it contributes nothing to the cost of defending the 
 Empire ; and hardly does more than support the charges of the local 
 administration. Under the native dynasty, the same revenue sufficed 
 to support an administration infinitely more minute, and, as regards its 
 higher officials, infinitely higher paid. None of the English governing 
 body in Orissa ever hopes to make a fortune ; under the Hindu princes, 
 Government employ was synonymous with assured opulence. Sixteen 
 great ministers regulated the kingdom, with seventy-two deputies, 
 and thirty-six separate departments of State. Under the English, the 
 revenue of Orissa with difficulty maintains seven hundred sepoys ; 
 under the Hindu princes it supported, besides a peasant militia of 
 300,000 men, a regular army of 50,000 foot, 10,000 horse, and 2,500 
 elephants. About a vast militia being attached to the soil there can be 
 no doubt ; and if Hindu chroniclers have magnified the number of the 
 regular troops, we know from the Musalmdn annalists, that the Orissa 
 king could at a moment's warning take the field with 18,000 horse and 
 foot. But the public works of the Hindu dynasty attest the magnitude 
 of their resources in a way that admits of no dispute. Thirty or forty- 
 thousand pounds were not considered extravagant for an ordinary temple. 
 
 329 Sicca Es. 4,961,497, or Company's Ks. 5,374,955, under SMh Jah6,n, 1627—1658 ; 
 As. Res. XV. 2V6. 
 
 33" Seloti 3faitouchi, As. Res. XV. 212. This sum may possibly have included outstand- 
 ing arrears. Mr. Stirling, without stating any grovinds, conjectures that it included also 
 the revenue of the Northern Circars ; but such a conjecture is opposed to the historical 
 facts of the time, and to the recorded statistics about the Orissa revenue. 
 
 331 The area is 23,907 square miles, but it has lost the fertile tracts towards the 
 Hugli and received in place of it an addition to its hill territorj'. In 1870 the total 
 revenue was £464,861, but this included the extraordinary income-tax. £450,000 is a 
 fair average in round numbers. ^ 
 
 332 ij millions sterling had already been spent on 31st March 1871.
 
 YU 
 
 The accumulations of one monarch ^^^ are stated at £1,296,750 ^^* 
 and from this he set apart £406,250 ^35 for the holy edifice of 
 Jaganndth. A similar magnificence surrounded the private life of the 
 Orissa kings. Their five royal residences {Kataks) still live in popular 
 tradition ; and although the story of the prince ^^^^ who died just as he 
 had married his sixty-thousandth wife is doubtless a fable, yet it is 
 a fable that could only be told of a great and luxurious court. 
 
 How came it that the same amount of revenue which made the 
 Orissa kings so rich, now leaves the English Governors of the province 
 so poor ? I have already shown that the great influx of silver, which 
 European trade poured into India, so decreased the value of that metal 
 that it sank from -yLth the value of gold in the twelfth century, to yV^h 
 or jL^h six hundred years later. But even this decrease would not 
 explain the affluence of the Hindu rulers of Orissa as compared 
 with the poverty of the English. It is when we consider the value of 
 silver as expressed, not in gold, but in food, that the explanation 
 becomes clear. Nothing like a regular record of prices under the 
 Gangetic dynasty (1132—1532) exists. But fortunately the maximum 
 prices of food during the great famines, which in almost each genera- 
 tion decimated Orissa, have come down to us, with the proportion 
 which those prices bore to the ordinary rates. In the famine at the 
 beginning of the fourteenth century, unhusked paddy rose to sixty 
 times its average rate, and sold from six shillings and eightpence to 
 nine shillings per hundredweight ^^^ In the next century, under 
 King Kapilendra (1452—1479 LD.), paddy rose to 62i times the 
 ordinary price, and fetched from 6s. 11^(1. to 9s. lid. per hundred- 
 weight 33^ Stirling, one of our first Commissioners in Orissa, obtained 
 an ancient paper showing the exact rates under the Grangetic dynasty. 
 According to it, unhusked paddy sold from just under a penny to 
 
 333 Rij4 Anang Bhim Deo. 334 4,788,000 M&rhas of gold. 
 
 335 1,500,000 Mirhas of gold. Purushottama Chandrikd, As. Res. XV. 
 3''6 Purushottama, in the Solar List of Kings, described on a previous page. 
 
 337 The following calculation, the first of the kind in Lower Bengal history, is 
 submitted with diffidence to Indian statisticians. While I believe that the data here col- 
 lected are absolutely correct, it will be seen that several elements of uncertainty exist. 
 In the famine at the beginning of the fourteenth century, paddy rose to 120 kahans 
 per bharan. The Orissa bharan will be found fully explained in my Stat. Ace. of 
 Puri, App. 1, p. 16. The paddy bharan contains nominally about 9^, but practically 
 9 cwt. A k&han is 1,280 cowries, and 4 k4hans or 5,120 cowries, were taken as the 
 official rate of exchange per rupee when we first obtained Orissa (in 1803). Afterwards 
 this rate was complained of, on the ground that a rupee cost 6 or 7 k&hans instead of 4 ; 
 and this formed one of the alleged causes of the Khurdha rebellion in 1817. (Mr. 
 Commissioner Ewer's Report to Chief Secretary to Government, dated Cuttack, 13th May 
 1818, para. 95, O.R.). At present Ihe rate is 3,5.84 cowries to the rupee, the great 
 difference being due to the fall in the value of silver which has rapidly gone on since we 
 obtained Orissa ; and so far as I can judge, the rate officially fixed in 1 804 of 5,120 cowries 
 per rupee was considerably under the actual rate of exchange. 120 kdhans per bharan of 
 9 cwt. would be 6s. %d. per cwt. at the rate of 4 kihans or 5,120 cowries per rupee, thus : 
 120 klhans = 30 rupees or 60 shillings ; and if 60 shillings buy 9 cwt., the price of 1 
 cwt. will be 6«. %d. On the other hand, if we take the lower or present rate of exchange 
 at 3,584 cowries per rupee, 120 k4hans per bharan will equal 9s. &d. per cwt. If we take 
 the exchange at the alleged old rate of 6 k&hans or 7,680 cowries to the rupee, which I 
 believe to be nearer the truth, the price woiild be reduced to 4«. Qd. per cwt. But in this 
 and the following calculations I have taken the rates of exchange which would give 
 the highest possible prices in the fourteenth century, so as to avoid the risk of overstating 
 the rise in prices since then. 
 
 338 125 k&,hanf, per bharan of 9 cwt., i.e., 6s. ll^d. at 4 kdhans or 5,120 cowries 
 per rupee ; and 9s. \\d. at the lower rate of exchange of 3,684 cowries per rupee.
 
 VUl 
 
 1| of a penny per hundredweight ^^^, husked rice at 2^d. to 3d. per 
 hundredweight ^*°, and cotton at from 2s. l^'H. to 3s. O^d. per hundred- 
 weight ^'^K 
 
 From the above calculations we cannot take the price of paddy 
 under the Gangeticline (1132 — 1532 A.D.) at above lid. per hundred- 
 weight. It was probably less. Paddy now costs on the field in Orissa 
 a shilling per hundredweight, or at least eight times its ancient price. 
 An almost equal depreciation in the value of silver has gone on in 
 other parts of India. Thus, in Upper Hindustan, under Ald-ud-din 
 (1303 — 1315 A.D.), the officially fixed rate of barley was a little under 
 sixpence per hundredweight ^^^^ and of peas fourpence half-penny a 
 hundredweight ^^^. In the latter part of the century, under Feroz 
 Shdh (1351 — 1388 A.D.), the price of barley remained exactly the 
 same, viz., sixpence per hundredweight ^**. But no sooner did the 
 tide of European trade set in, than the value of silver fell, and at the 
 time of Akbar (1556 — 1605 A.D.)-the price of barley rose to 9|d per 
 hundredweight ^^^. The price of barley in the same localities is now, on 
 an average, about three shillings and sixpence per hundredweight retail, 
 or seven times what it was throughout the fourteenth century. 
 
 We may therefore fairly assume that, as estimated in the staple food 
 of the country, the value of silver in Orissa has fallen to |th of its 
 purchasing power. Wages were regulated then, as now, by the price 
 of rice, and in fact were mostly paid in grain. The Gangetic dynasty 
 of Orissa (1132 — 1532 A.D.), with a revenue nominally the same as 
 our own ^*^, were therefore, as regards the home products of the 
 country, and their ability to keep up armies and pompous retinues, 
 eight times richer than we are. The reason clearly appears why a 
 revenue which now barely defrays the charge of collection and the cost 
 of protecting person and property, with one or two absolutely necessary 
 public works, formerly supported a great standing army, a wealthy 
 hierarchy of priests and ministers of State, and a magnificent royal 
 court. As the native dynasty had practically eight times more revenue 
 
 339 Two Mhans per bharan of 9 cwt., i.e., just under a penny, at 6 k4hans per rupee ; 
 l|rf. at 4 kihans ; and 1| of a penny at 3,584 cowries per rupee. 
 
 3*0 Ten cowries per Cuttack seer of 105 tolas. 
 
 3" One pan and 10 gandas per seer. If, as seems possible, the rate in ancient times 
 was at six or seven instead of 4 k&hans to the rupee, these prices would be a full third 
 less ; and the depreciation in the value of silver would be about one-twelfth instead of 
 one-eighth of its former purchasing power. 
 
 ^^"^ 'Fonv jitaU Tpev 7nan. The jital was e\ of the silver Tankfi. of 175 grains; or say 
 g-'i of the present rupee, or a farthing and a half. The ma7i of that period contained 
 28'8 It), avoirdupois. As barlej' cost 4 jitals or six farthings per 28-8 lb., the price was a 
 little under six pence per cwt. For a full discussion of these weights, see Mr. Thomas' 
 Pathin Kings of Delhi, p. 161, ed. 1871. 
 
 3" Three jitals per man. 3** Four jitals per man. 
 
 3*' 8 dims per tnan. The dkm. was officially reckoned at -^■^o ot a rupee ; the man 
 then contained 55-467 lb. avoirdupois. 
 
 3*' The revenue under the Gangetic line may in round numbers be set down at 
 £435,000, and under the English at £450,000 a year. With regard to the present price 
 of paddj', the people consider eight annas a cheap rate for a Cuttack man, containing 
 1071b. avoirdupois; or as nearly as maybe, a shilling a hundredweight. This is the 
 rate on the field ; and as will be seen in my Statistical Accounts (Appendices I, II, and 
 IV), the retail price varies in different localities. In Puri district I found that an 
 ordinary rate in good seasons was 210 lb. for two shillings. In Balasor town the price 
 has varied from 240 lb. per rupee in 1850, to 140 in 1870. These ar^ the prices of the 
 common sort of unhusked paddy, the staple food of the people.
 
 IX 
 
 to spend than we have, so they practically took eight times more from 
 the people. That is to say, their revenue represented eight times the 
 quantity of the staple food of the province which our own revenue 
 represents. 
 
 The truth is, that a whole series of intermediate rights has grown 
 up between the ruling power and the soil. I shall show in the next 
 volume how the native kings of Orissa enjoyed the undivided owner- 
 ship of the land. Instead of a long line of part-proprietors stretching 
 from the Crown to the cultivator, as at present, and each with a 
 separate degree of interest in the soil, the jihtium dominimn was 
 firmly bound up and centred in the hands of the Prince. The growth 
 of these intermediate rights forms the most conspicuous phenomenon 
 in the history of Orissa under its foreign conquerors. For centuries, 
 under the Musalmdns and Mahrattas, the unha^Dpy province knew no 
 Government but that of the sword ; yet the very roughness of the 
 public administration allowed private rights to spring up unperceived, 
 and to harden into permanent charges upon the soil — charges which 
 its native Princes would never have tolerated. Thus from long anarchy 
 and misery a fair growth of rights has blossomed forth, and the 
 magnificence, which the Hindu Princes of Orissa concentrated upon 
 themselves, is now distributed in the form of moderate prosperity 
 among a long-descending chain of proprietors, each with his own set 
 of rights in the land. 
 
 It is to such miscellaneous imposts as the stamp revenue and salt 
 tax that the British Government of India has to look for the means 
 of carrying on the administration. The native dynasties trusted 
 almost entirely to the land revenue. They managed to raise an annual 
 income variously stated at from £406,250 to £570,750, or say 
 £450,000 a year, between the twelfth and the eighteenth centuries. 
 This almost exactly corresponds, in figures, to the total revenue 
 which, by a great machinery of miscellaneous imposts, we now collect 
 from the province. In actual purchasing power, it amounted to seven 
 times our present revenue, and supported the magnificence of a Hindu 
 Court, with a standing army, an opulent hierarchy, and a costly civil 
 list. Under British rule, the Orissa revenue barely sufiices for the 
 charges of the local administration. 
 
 Had we dealt with the land as the Native rulers did, and con- 
 sidered it the inalienable property of the State, the land-tax might 
 possibly still bave sufficed. But under our more liberal policy of deve- 
 loping private rights in the soil at the expense of the public burdens 
 upon it, the land-tax has become wholly inadequate to the cost of 
 Government. In 1829 — 30, the land revenue of Orissa amounted to 
 £158,965. In 1836 — 37, the Government leased out the province for 
 thirty years ; and in 1867 the Legislature renewed that settlement for 
 another period of thirty years. It now amounts to £168,286, and no 
 further increase can be hoped for till the end of the century. Mean- 
 while, the bare cost of Local Government amounts to £422,000 a 
 year ; and before the end of the century it will in all probability 
 exceed half 9. million. Before the expiry of the present leases, the 
 land-tax will yield less than one-third of the merely local expenditure.
 
 If, tlierefore, the proviuce is to pay its way, Government will be under 
 a constant necessity of raising additional revenue by means of the 
 miscellaneous imposts which ai'e so distasteful to an Indian people. 
 
 This difficulty was partly inevitable. No materials have come 
 down showing the precise proportion of the produce of the soil which 
 the ancient Orissa Dynasties took. Many conflicting traditions exist 
 on the subject, and doubtless the proportion varied in different parts 
 of the country. The rich delta of Orissa could afford to pay a larger 
 share to the Prince than less productive arid tracts ; and, as a matter 
 . of fact, the Rdjdh of Parikud, who still maintains his fiscal indepen- 
 dence, takes exactly three-fifths of the crop. He, however, like other 
 Hindu Princes, dealt with the cultivators direct. We, on the other 
 hand, have allowed a whole series of intermediate holders, each with 
 his own set of rights, to grow up between the State and the actual 
 husbandmen ; and practically not one-tenth of the harvest reaches 
 the public treasury. The following figures will, I think, establish 
 this fact. The three Orissa districts contain 7,723 square miles, or 
 4,942,720 acres. At least one-half of this, or say two million and a 
 half of acres, are under cultivation. The value of the ordinary crops 
 varies from lO.s. to £1 16s. Taking the low average of 15s., the total 
 value of two million and a half of acres would amount to £l,875i,000 ; 
 and a land-tax of ten percent, would yield £187,500. Now the actual 
 land-tax from all sources amounts to £168,286. While, therefore, 
 a Hindu Prince like the Rdjdh of Parikud takes three-fifths as his 
 share of the annual produce of tbe soil, the British Government obtains 
 not one-tenth of it. 
 
 This difference is partly due to the liberality of our land settle- 
 ment, partly to the growth of intermediate holders ; but it is also in a 
 large degree due to the fact that we take our rent in money and not 
 in kind. The rent-roll of an Orissa estate, when offered for sale in 
 the market, is now found, as a rule, to be double its Government land- 
 tax. Of course, extreme instances occur on both sides, but native 
 gentlemen and native officers have alike assured me that this is below 
 rather than above the average. In settling with the landholders in 
 1837, the Company allowed gross reductions to about one-third of the 
 rent for the charges and risks of collection ^^^ The extension of culti- 
 vation, with the natural rise in rents, has doubled the landholder's 
 profits during the past thirty-three years ; so that, as above stated, the 
 proprietor now generally realizes at least as much again as he pays to 
 Government. The landholder, in his turn, collects from the cultivator 
 as rent from one-half to one-quarter of the actual yield of the land, 
 or say one- third. Government, therefore, as it only receives at most 
 one-half of the landholder's collections, cannot get more than one-sixth 
 of the net yield of the soil. In reality it receives much less. For it 
 takes its share, not in grain, but in silver, which is constantly depreci- 
 ating in value. Tliis circumstance further decreases by nearly one-half 
 tlie share which the State actually obtains, and reduces its one-sixth to 
 one-tenth or one-twelfth of the produce of the land. I have shown, on 
 what I believe to be irrefragable evidence, that the purchasing power 
 
 3*' The theoretical allowance was ten per cent., but the various extra allowances raise 
 )t to httwccn thirty and forty per cent, in Orisga— nV/c Vol. I, p. 53.
 
 XI 
 
 of silver in India has fallen during the last five hundred years to 
 one-seventh of what it was in the thirteenth century. I propose, very 
 briefly, to prove that this decline, at least in Orissa, instill going on, 
 that it has proceeded at a rapid rate during the present century, and 
 that at the present moment it continues unchecked. 
 
 The period of anarchy which preceded our accession in Orissa in 
 1803 has left few memorials behind it. But I have brought together, 
 from the archives of the adjoining district of Ganjam, a series of 
 papers which illustrate the state of prices a hundred years ago. My 
 materials commence with the year 1778, and they show the average 
 price of unhusked rice, except in years of famine, to have been about 
 8rf. a hundredweight, and the price of husked rice l.s. 4|f/. ^'^ In 
 Orissa the cost was always about one-third less, and indeed Ganjam 
 imported a large portion of its rice-supply from Puri and Cuttack, 
 This would show the price of paddy in Orissa to have been under 6(L a 
 hundredweight ; and when we obtained the province in 1803, 6d. a 
 hundredweight was considered rather a high price. A shilling per 
 hundredweight is now reckoned a cheap rate for paddy bought on the 
 field at harvest time. In 1771 a bullock sold for 10s. which would 
 now cost at least 24s., and a sheep from Is. to Is. dd. whose present 
 price would be at least 4s. The w^hole evidence to be derived from the 
 official records shows that the average price of staple commodities 
 towards the end of the last century was less than one-half their present 
 rates. The wages of laborers bore the same proportion, and palan- 
 quin-bearers cost 4s. a month who now receive Ss. 
 
 We have, however, another means of ascertaining the decline in 
 the purchasing power of silver. From time immemorial Orissa, like some 
 other parts of India, has used a local currency of couric. When the 
 province passed into our hands in 1803, the public accounts were kept 
 and the revenue was paid in these little shells. In granting liberal 
 leases to the landholders, however, we stipulated that they should 
 henceforth pay their land-tax in silver, and fixed the rate of exchange 
 at 5,120 cowries to the rupee. For many years after our accession 
 the proprietors bitterly complained j;hat the rupee was worth much 
 more than this rate, and that, in order to make up their revenue in 
 silver, they had to pay the village banker from 6,400 to 7,680 cowries 
 per rupee. This was alleged as one of the causes of the Khurdhd 
 rebellion in 1817 ; and although the hardships may have been exagge- 
 rated, the common rate seems to have been from 6,000 to 7,000 couries 
 per rupee. But during the last seventy years the value of silver has 
 steadily declined, and a rupee now only purchases 3,584 of these little 
 
 3*8 In 1778 the price of paddy in Granjam varied from 7d. to 7^d. per cwt. ; 
 
 ,, 1779 7rf. to l^d. ; 
 
 ,, 1780 l^d.toS^d. ; 
 
 ,, 1781 (a year of scarcity) it rose to . . . . S^d. : 
 
 „ 1782 ".. .. Hd.; 
 
 ,, 1783 from 9J(^. to Qfo'. ; 
 
 ,, 1784 (a year of famine) it sold at the almost nominal rate of ll(f. ; 
 
 ,, 1785 it fell to Sd. ; 
 
 ,, 1786 8^(1. : 
 
 ,, 1787 8^d. to 9f^/. After that year 
 
 followed a series of famines and disturbances, which completely disorganized prices, and 
 for a time put a ijtop to importations. The years from 1789 to 1792 are still spoken of as 
 the period of the first Ganjam famine under our rule.
 
 Sll 
 
 shells •^■'^ In 1804 the official exchange was 5,120, and the practical 
 rate of exchange from 6,460 to 7,680. 
 
 The piirchaSffeg power of silver in Orissa has, therefore, declined to 
 one-half during the last seventy years, whether estimated in the local 
 currency or in the staple food of the province. The depreciation has 
 of late been accelerated by the vast amount of specie expended upon 
 the irrigation enterprises, and by the large payments in silver which 
 have been made to Orissa forrice and other products since the canals 
 opened up the seaboard. These great works practically date from the 
 year 1860, and during the twenty years between 1850 and 1870 prices 
 have risen from one-third to one-half. Thus to take the town of Bala- 
 sor, which exhibits the rise in its extreme degree. In 1850 the best 
 unhusked paddy sold at 168 pounds per rupee ; in 1870 at 84 pounds, 
 or just one-half. Fine cleaned rice was 100 pounds per rupee in 1850 ; 
 80 pounds in i860 ; and 40 pounds in 1870. Common rice has not 
 risen quite so much, as the cultivation has in the meanwhile extended. 
 It was reported at 120 pounds per rupee in 1850 ; 100 pounds in 1860 ; 
 and 70 pounds in 1870, Wheat sold at 33 pounds per rupee in 1850 ; 
 29 in 1860; and 18 in 1870. 
 
 The rate of wages has risen in proportion. In Balasor, unskilled 
 laborers earned a penny halfpenny a day in 1850 ; they now get from 
 twopence halfpenny to threepence. Carpenters' wages were in 1850 
 threepence a day ; they are now fivepence farthing. Smiths and brick- 
 layers could be had at threepence three farthings in 1850 ; they now 
 earn sixpence. If we take the two other large cities in Orissa, Cuttack 
 and Puri, the same results appear. In Cuttack, day-laborers received 
 twopence farthing in 1850 ; they now obtain threepence three farthings. 
 Smiths got fourpence halfpenny in 1850 ; they now earn sixpence. 
 Bricklayers' wages have risen more rapidly, or, from twopence farthing 
 in 1850, to sixpence in 1870. In Puri, the money wages are officially 
 returned at the following rates ; unskilled labprers in Puri town, four- 
 pence a day ; in the rural parts twopence halfpenny. Their wages 
 twelve years ago were twopence halfpenny in the town, and three 
 halfpence in the country. In I860, smiths and carpenters got three- 
 pence three farthings in the town, and twopence in the country ; they 
 now get sixpence a day in the town and threepence three farthings in 
 the country. Bricklayers, who used to get fourpence halfpenny in the 
 town twelve years ago, now get sevenpence halfpenny. 
 
 Within the last twenty years, therefore, the price of food in the 
 large city of Balasor has almost doubled ; and throughout the whole 
 province, so far as statistics exist, it has risen by about one-third. The 
 rates o-f wages have also increased by upwards of one-third during 
 the same period. That these results are due, not to any altered degree 
 of pressure of the population on the land, or in their demands on the 
 food of the province, is clear from the following fact. While town 
 wages, which are paid in money, have thus risen, agricultural wages, 
 which are paid in kind, have remained absolutely the same. The field- 
 laborer has always earned a lower wage than unskilled workmen in the 
 towns. In 1850 he received from twelve to fifteen pounds of unhusked 
 
 349 "phe rate, of course, varies, but I am informed that 14 gandas or .56 cowries per 
 pice has of late been the ruling exchange in the larger marts." This gives 3,584 to the 
 rupee.
 
 paddy per diem according to the locality ; and at the present day he 
 receives exactly twelve to fifteen pounds according to the locality. All 
 wages that are paid in money have risen by more than one-third.; all wages 
 that are paid in kind remain the same. 
 
 These, it should be remembered, are the results of only twenty 
 years. During this brief period, silver has lost more than a third of 
 its purchasing power, whether expressed in wages, or in the staple 
 food of the people. Indeed, one District officer reports to me that the 
 price of food has doubled within twelve years. The public revenues 
 have been depreciated to at least one-third of their former purchasing 
 power, whether expressed in wages or in grain. I have already shown 
 that the value of silver, as estimated in the popular or cowrie currency, 
 has fallen thirty per cent. ^'^^ since 1804, even calculated at the rate of 
 exchange which Government then arbitrarily fixed in its own favour. 
 If computed according to the actual rate of exchange then current, it 
 has decreased by one-half. Had our first administrators contented 
 themselves with taking payment in silver at the current rate of the 
 cowrie exchange, the Orissa land-tax would now have been double 
 what it is at present. But had they resolved to collect it at a grain 
 valuation, according to Akbar's wise policy, it would now be more than 
 double ; for the prices of food have rather more than doubled since 
 1804. The system of paying the land-tax by a grain valuation appears 
 to me to be the best means of giving stability to the Indian revenues. 
 In Orissa, it would have enabled us to reduce the salt duty to the easy 
 Madras rate ; it would have saved the necessity of an income-tax 
 altogether ; and by shorter leases, it would now yield as large an income 
 as the total which we extract by a variety of vexatious burdens. 
 
 The experience of the past few years shows that the fall in value 
 of silver still continues. Every morning the Government of India 
 wakes up poorer than when it went to bed the night before. A lakh of 
 rupees in 1850 represented a great deal more in actual purchasing power 
 than a lakh of rupees in 1860; and a lakh of rupees in 1860 repre- 
 sented a great deal more than it did in 1870. Apart, therefore, from 
 the cost of increased efficiency in the administration, the English in 
 India must inevitably go on increasing the miscellaneous public 
 burdens so obnoxious to the people, as long as the land-tax is calculated 
 in silver. The one remedy is a grain valuation, either struck annually 
 or revised at intervals of about five years. It might be possible to 
 suggest several sources of revenue, such as a duty on Fan, the aromatic 
 leaf that the people chew instead of tobacco, which would be less 
 unpopular than the income-tax. But miscellaneous imposts, however 
 unobjectionable in themselves, are mere makeshifts and stop-gaps in a 
 fiscal system like that of Bengal. The secret of making India pay is 
 the due conservation of the land-tax ; and in order to conserve the land- 
 tax, it must be estimated, not, as in Orissa, upon the so-called rent of 
 the landholder, but upon the actual produce of the soil. Until this 
 necessity is realized and acted upon, every few years will bring a 
 fresh set of financial embarrassments. Under the present system, with- 
 out adding a single Judge, or Magistrate, or officer of any sort to the 
 Civil List ; without granting one of the administrative improvements 
 
 ^° I'^-f >', on = 70 per cent., showing a decrease of 30 per cont-
 
 XIV 
 
 which India's rapid advance in civilisation suggests ; without under- 
 taking any of the rural public works which a tropical country so 
 urgently requires ; without allowing a rupee for bringing our materiel 
 of war up to the modern European standard ; the Indian Government 
 will find at the end of each ten years the revenue which sufficed at the 
 beginning of the decade altogether insufficient at the close of it. — 
 Hunter's " Orissa:' 
 
 (Q.)— ^Ex-trad fro)n the Article on " India " i)i Hunter's 
 " Gazetteer of India:'' 
 
 Eevenues of the Moghul Emperors at thirteen various periods, from 
 1593 to 1761/ from a smaller area and population than those of 
 British India. 
 
 Moghul Emperors. 
 
 Authority. 
 
 r 1 Revenue from 
 Land revenue. ,u sources. 
 
 
 
 £ 
 
 £ 
 
 1. Akbar, A.D. 1593. 
 
 Niz&m-ud-diu ; not for 
 all India. 
 
 •• 
 
 32,000,000 
 
 Do. ,, ,, .. 
 
 Allowance for Provin- 
 cial Troops - [bumi) . 
 
 
 ■ 10,000,000 
 
 
 
 
 
 Net 42,000,000 
 
 2. Akbar, A.D. 1594.. 
 
 Abdul Fazl, MSS, ; not 
 for all India. 
 
 Net 16,574,388 
 
 
 3. Do. ., ,, .. 
 
 Ofi&cial documents ; not 
 for all India. 
 
 ,, 16,582,440 
 
 •• 
 
 4. Do. ,, 1605.. 
 
 Indian authorities quot- 
 ed by DeLaet. 
 
 ,, 17,450,000 
 
 
 5. JeMngir, A.D. 1609 
 
 — 11. 
 
 6. Do. ,, 1628 
 
 Captain Hawkins 
 
 
 Net 50,000,000 
 
 Abdul Hamid Lahori . . 
 
 Net 17,500,000 
 
 
 7. SMh Jehdn, A.D. 
 
 Do. 
 
 ,, 22,000,000 
 
 , , 
 
 1648-49. 
 
 
 
 
 8. Aiirangzeb, A.D. 
 1655. 
 
 Official documents . . | 
 
 -Gross 26,743,970 
 Net 24,056,114 
 
 
 9. Do. A.D. 
 
 Later official docu- | 
 ments. ( 
 
 Gross 35,641,431 
 
 ] ■■ 
 
 1670 I?) 
 
 Net 34,505,890 
 
 10. Do. A.D. 
 
 Gemelli Careri 
 
 
 Net 80,000,000 
 
 1695. 
 
 
 
 
 11. Do. A.D. 
 
 Manucci Catrou 
 
 Net 38,719,400 
 
 „ 77,438,800 
 
 1697. 
 
 
 
 
 12. Do. A.D. 
 
 Ramusis 
 
 , „ 30,179,692 
 
 
 1707. 
 
 
 1 
 
 
 13. 8Mh Alum A.D, 
 
 Official statement pre- 
 
 „ 34,506,640 
 
 
 1761. 
 
 sented to Ahmad Shdh 
 Abdali on his entering 
 
 
 
 
 Delhi. 
 
 i 
 1 
 
 
 > The above table is reproduced from Mr. Edward Thomas' Revenue Resources of the 
 Moghul Empire, published in 1871, and has been revised by him from materials which 
 he has collected since that date. — I insert the words we< and ^ro«* by his direction. 
 
 ' This is the lowest estimate at which the Bumi or Landwehr, in contradiction to the 
 Royal Army, can be reckoned. — Mr. Thomas' jR*w»«e Resources of the Moghul Einpire, 
 page 12. ' *■
 
 i^ 
 
 The following statement shows the revenues from the provinces of 
 the Delhi Empire under Emperor Shdh JehAn, 1648-49 : — 
 
 Provinces. 
 
 1. Delhi 
 
 2. Agra 
 
 3. Lahore 
 
 4. Ajmere ... 
 
 5. Dau]atabad 
 
 6. Berar 
 
 7. Abmedabad 
 
 8. Bengal 
 
 9. Allahabad 
 
 10. Behar 
 
 11. Malwa 
 
 12. Khandeisb 
 
 13. Oudh 
 
 14. Telingana 
 
 15. Multan 
 
 16. Orissa 
 
 17. Tatta (8ind) 
 
 18. Baglanah 
 
 19. Kashmere 
 
 20. Kabul 
 
 21. Balkh 
 
 22. Kandahar 
 
 23. Badakhshan 
 
 In India. 
 
 Total for all India 
 
 Total 
 
 Land-tax. 
 
 RS. 
 
 25,000,000 
 
 22,500,000 
 
 22,500,000 
 
 15,000,000 
 
 13,750,000 
 
 13,750,000 
 
 13,250,000 
 
 12,500,000 
 
 10,000,000 
 
 10,000,000 
 
 10,000,000 
 
 10,000,000 
 
 7,500,000 
 
 7,500,000 
 
 7,000,000 
 
 5,000,000 
 
 2,000,000 
 
 500,000 
 
 207,750,000 
 
 3,750,000 
 4,000,000 
 2,000,000 
 1,500,000 
 1,000,000 
 
 220,000,000 
 
 Aurangzeb. — All Northern India except Assam and the greater part 
 of Southern India paid revenue to Aurangzeb. His Indian Provinces 
 covered nearly as large an ai'ea as the British Empire at the present 
 day, although their dependence on the central Government was less 
 direct. From these provinces his net land revenue demand is returned 
 at 30 to 38 millions sterling, a sum which represented at least three 
 times the purchasing power of the land revenue of British India at the 
 present day. But it is doubtful whether the enormous demand of 38 
 millions was fully realized during any series of years, even at the height 
 of Aurangzeb's power, before he left Delhi for his long southern wars'. 
 It was estimated at only 30 millions in the last year of his reign, after 
 his absence of a quarter of a century in the Deccan. Fiscal oppressions 
 led to evasions and revolts, while some or other of the provinces were 
 always in open war against the Emperor. The table given below 
 exhibits the Moghul empire in its final development in 1697, just before 
 it began to break up. The standard return of Aurangzeb's land 
 revenue was net £34,505,890 ; and this remained the nominal demand 
 in the accounts of the central exchequer during the next half century, 
 notwithstanding that the Empire had fallen to pieces. When the 
 Afghan invader, Ahmad Shdh Durdni, entered Delhi in 1761, the 
 Treasury officers presented him with a statement showing the land 
 revenue of the Empire at £34,506,640. The highest land revenue of 
 Aurangzeb, after his annexations in Southern India and before his • 
 final reverses, was 38| millions sterling ; of which close on 38 millions 
 were from Indian Provinces. The total revenue of Aurangzeb was
 
 XVI 
 
 estimated in 1695 at 80 millions and in 1697 at 77| millions sterling. 
 The gross taxation levied from British India, deducting the opium 
 excise, which is paid by the Chinese consumer, averaged 35 1 millions 
 sterling during the ten years ending 1879. 
 
 1 
 
 Land revenue of Aurangzeb in 1697 
 
 Land revenue of Aurangzeb in 1707 
 
 (according to Manucci). 
 
 (according to Ramusis). 
 
 1. Delhi 
 
 BS. 
 
 12,550,000 
 
 RS. 
 
 1. Delhi 30,548,753 
 
 2. Agra , . 
 
 22,203,550 i 
 
 2. Agra .. 
 
 
 28,669,003 
 
 3. Lahore 
 
 23,305,000 1 
 
 3. Ajmere 
 
 
 16,308,634 
 
 4. Ajmere 
 
 21,900,002 
 
 4. Allahabad 
 
 
 11,413,581 
 
 5. Guzerat 
 
 23,395,000 i 
 
 5. Piinjab 
 
 
 20,653,302 
 
 6. Malwa 
 
 9,906,250 ! 
 
 6. Oudh 
 
 
 8,058,195 
 
 7. Behar 
 
 12,150,000 1 
 
 7. Multan 
 
 
 5,361,073 
 
 8. Multan 
 
 5,025,000 
 
 8. Guzerat 
 
 
 15,196,228 
 
 9. Tatta(Sind) .. 
 
 6,002,000 
 
 9. Behar . . 
 
 
 10,179,025 
 
 10. Bakar 
 
 2,400,000 
 
 10. Sind .. 
 
 2,295,420 
 
 1 1 . Orissa 
 
 5,707,500 
 
 11. Doulatabad . 
 
 25,873,627 
 
 12. Allahabad 
 
 7,738,000 
 
 12. Malwa 
 
 10,097,541 
 
 13. Deccan 
 
 16,204,750 
 
 13. Berar .. 
 
 
 15,350,625 
 
 14. Berar . . 
 
 15,807,500 
 
 14. Khandeish 
 
 
 11,215,750 
 
 15. Khandeish 
 
 11,105,000 
 
 15. Bedm- . . 
 
 
 9,324,359 
 
 16. Baglanah 
 
 6,885,000 
 
 16. Bengal 
 
 
 13,115,906 
 
 17. Nande (Nandair) 
 
 7,200,000 
 
 17. Orissa . . 
 
 
 3,570,500 
 
 18. Bengal 
 
 40,000,000 
 
 18. Hyderabad 
 
 
 27,834,000 
 
 19. Ujain 
 
 20,000,000 
 
 19. Bijapur 
 
 
 26,957,625 
 
 20. Eajmahal 
 
 10,050,000 
 
 
 
 21. Bijapur 
 
 50,000,000 
 
 
 
 22. Golconda 
 
 Total . . 
 
 50,000,000 
 
 Total . . 
 
 
 379,534,552 
 
 292,023,147 
 
 23. Kashmere 
 
 3,505,000 
 
 20. Kashmere 
 
 5,747,734 
 
 24. Kabul 
 
 Grand Total . . 
 
 3,207,250 
 
 21. Kabul 
 
 Grand Total . . 
 
 4,025,983 
 
 386,246,802 
 
 301,796,864 
 
 
 or 
 £38,624,680 
 
 
 or 
 £30,179,686 
 
 The above lists have been taken from 
 of the Moghul Empire, pages 46 and 50, 
 
 Edward Thomas' Eesources 
 
 {!).) — Extract from the Journal of the Archceological Survey of India, 
 
 Vol. IV. 
 
 . Translation of a copper-plate grant, dated the 23rd year of Eajendra 
 Chola (probably A.D. 1046). 
 
 Hail to Kovirajakesaripanma, the Chakyavarti Sri KulottungasSla- 
 deva, swaying his sceptre over all the directions of the west sea of 
 Vikklar and Singalar (Ceylon). He, in the twentieth year of his I'eign, 
 while graciously seated on KdUhrjardijan^ the temple throne placed in 
 the Tirumanjanaidlai ^ inside the temple of the town of Ahavamallaku- 
 lakaralpuram otherwise called Ayirattali, was requested by the king of 
 
 The apartment in the temple where water is stored tor bathing the idol.
 
 xvu 
 
 Kidara to exempt the villages belonging to the temple of Eajendrasola- 
 perumballi and Rajarajaperumballi which were built in Solakulavalli- 
 pattana, situated in Pattanakkurru division of the fertile country of 
 Keyamanikkavalanadu from the taxes of antamya, - v'lrasishai, ^ pamnai- 
 pandavefti'^ and kunddli'^ and to permit the exchange of the possession 
 of lands from the old inhabitants to the temple. Thus at the request of 
 the king of Kidara which was reported by his messengers, we graciously 
 issue this order to our agent, Rajarajarauvendavelan, to execute copper 
 plate document to this effect. The lands and prodiice belonging to the 
 temple of Rajarajaperumballi, which was built in Solakulavallipattana 
 in the division of Pattanakkurru of the fertile country of Keyamanik- 
 kavalanadu ; ninety- seven and three-eightieths and a-hundred-and 
 sixtieth ^' {veils '') of land in Anaimangalam of Pattanakkurru are now 
 fixed in the possession of the temple in exchange of the owners with 
 the calculated ^ paddy produce of 8,943 Jmlams, 2 tunis, 1 kurunl, and 
 3 ndlis, and the settled ^ paddy produce of 4,506 kalams ; 12f (velis) of 
 lands given to Brahmans of Anaimangalam with the calculated produce 
 of 400 kalams and the settled paddy produce of 560 kalams ; 27 1 and 
 -g-Q and -Y^-Q (velis) of land in Munjikkudi of this country with the 
 calculated paddy produce of 2,779 kalams, 1 tuni and 4 nails and the 
 settled paddy produce of 1,806 kalams ; 106 y'g (velis) of land in Amur 
 of Tiruvarur division, with the calculated paddy produce of 10,606 
 kalams, 2 turn's and 2 kiirunis and settled produce of 5,850 kalams, 70f 
 and -f-Q (velis) of land in Nanalur, otherwise called Vadakudi of the 
 country of Alanadu, with the calculated paddy produce of 6,514 kalams^ 
 5 kuninis and 1 ndli and the settled paddy produce of 2,840 kalatns. 
 10 ^^ and g'o and ^^-^ and -^^^ and ,2^-0 (velis) of land of Kilachan- 
 dirappadi of this country with the calculated paddy produce of 1,012 
 kalams and 5 kurunis ; 60 1 (velis) of land given as donations to the 
 Brahmans of Palaiyur of this country with the calculated paddy produce 
 of 1,000 kalams and the settled paddy produce of 1,500 kalams. 87| 
 (velis) of land in Puttakkudi of Kurumbur division of the fertile country 
 of Jayankondasolavalanadu with the calculated paddy produce of 8,720 
 kalams 2i\idi the settled paddy produce of 6,107 kalams; 3^1^^ (velis) of 
 land in Udayamarttandanalltir of Idaikkalinadu of the fertile country 
 of Vijayarajendrasolavalanadu with the calculated paddy produce of 12 
 kalams and 5 kurunis and the settled paddy produce of 135 kalams, 3 
 kurunis and the settled dry land paddy produce of 78 kalams and 5 
 kurunis as favorably fixed during the settlement of taxes. Half of this 
 the above stated lands and produce shall be in the enjoyment of this 
 temple and the other half shall cover the several expenses of aniardya, 
 
 ^ It may possibly be interpreted import duties. 
 
 ^ Fees given to the temple at marriages — a practice which in all Hindu societies con= 
 tinues to this day. 
 
 * Fee for the use of old paths. 
 
 ^ Kunddli is an axe for cutting wood (generally fuel wood for use in the houses). It is 
 not plain whether by this the ancient Chola kings also levied a tax on the use of arms, or 
 whether it is a tax on cutting firewood in forests. 
 
 ^ The Tamil way of expressing fractions. The mode of expression would be lost if it 
 were translated 97tIo instead of 97-8% and jjo- 
 
 ■^ The measurement of land is not given. The grant being in the Tanjore district, 
 according to the way of calculation there we may roughly translate veils. 
 
 ^ and 8 Calculated and settled paddy produce. Even now the lands have these 'tWO 
 systems, the former calculated produce having been fixed in past times, 
 
 Q
 
 XVIU 
 
 panmaipandavetii, and other taxes incurred in money or paddy by this 
 village. Thus for the exemption from taxation and for the exchange 
 of the lands from the former owners to the temple we issue this order. 
 
 Thus 31| and j\ and -g-^^ (velis) of land within the four boundaries 
 with all the taxes of antardya and panmaipandavetii and others exempted 
 we give to the temple. 
 
 Ifote. — The terms " calculated produce " and " settled produce " in the 
 above inscription probably refer to the gross produce and the portion of it 
 representing Government share. If this surmise be correct, the Govern- 
 ment share, it will be seen, exceeded a half in some cases. In one or two 
 cases there must be a mistake in the transcription of the inscription as the 
 " settled produce " given exceeds the " calcidated produce." It is assumed 
 that the figures representing the superficial contents of lands denote 
 "velis" — a veli being equivalent to 6f acres. " Veli " is an ancient 
 measure and there is no tradition current in the Tanjore district showing 
 that either the extent of a veli has been altered or that any other land 
 measure was at any time in use. 
 
 The following extract from a grant, dated A.D. 1084 by Kulothunga- 
 chola shows the taxes and seignioral dues levied in the times 
 of the Cliolas in the Tanjore district. 
 
 may you enjoy the several trees and the enjoyment and cultivation of 
 mango trees ; may you have the privilege of opening up big oil- 
 presses ; may you enjoy the upper irrigation and straining in the 
 channels that, passing through this village, irrigate other villages ; 
 may you enjoy the upper irrigation and straining in the channels 
 that, passing from other villages, come to this village. The cocoa and 
 palmyra trees cultivated in this village shall not be climbed up by the 
 Ilavar ""^ ; may you enjoy the privilege of the planting of (pillars for) 
 toranas ^^ as befitting your position. For the enjoyment of the above 
 rights ; may you enjoy also the ndddtchi, the nirdtchi, one ndli (of rice 
 collection) for every vatti (platter), one ndli (of rice collection) on (the 
 days sacred to) the manes, the tax on weddings, the (tax on) washer- 
 men's stones, the tax on potters, the rent on water, the leaves collec- 
 tion, ^^ a cloth for (every) loom, the brokerage, the taxes on gold- 
 smiths, the tax on neatherds, the tax on sheep, the good cow, the good 
 bull, the watch of the country, the guana, tortoise, frog and others of 
 the kind in the common embankments inside (the village) ; may you 
 enjoy the right of sowing Kdr, the supreme management, the ikndi 
 petitions and other rights even without the exception of the lands used 
 for raising good crops. For the enjoyment of the above rights, may 
 you enjoy also the right of irrigating by obstructing the water by 
 embankments, of straining and allowing the flow of the current. May 
 
 1" Literally the polluted, by which term is meant the nddars ov sdnars, commonly 
 called the toddy-tree climbers. 
 
 " The gate of a house in Sanskrit, but it also means festoons strung of green leaves, 
 generally mango leaves. 
 
 '^ For manure or to be used as dishes for eating in taking meals. (
 
 XIX 
 
 you enjoy the right of the upper irrigation and straining in the chan- 
 nels irrigating this land ; in these channels none (else) shall enjoy the 
 right of cutting up branch channels, of obstructing the water, of shut- 
 ting up the lower sluices, of raising up the water by obstructions, and 
 of lifting up water by baskets. Let none obstruct the common run- 
 ning water or use that water for purposes of irrigation by obstructing 
 its course. Let none raise round-about storeyed houses and mansions 
 or sink unwalled wells or enjoy the proceeds of the cocoanut trees 
 yielding (cocoauuts), damanaham ^^, mam ^^, iriiceli ^^, nen^aka, the blue 
 lily, mango, jack, areca-nut, palmyra. 
 
 (E.; 
 
 — The folloiving abstract shmcs the revenue in paddy which a number 
 of villages in the Chola and other countries assigned to the temple at 
 Tanjore by the Chola King Rajaraja deva in thu 29th year of his 
 reign (end of the tenth century) had. to pay to the Tanjore temple as 
 recorded in the inscriptions on the walls of the temple. 
 
 Names of villages. 
 
 Extent of tax- ! 
 
 Revenue payable 
 
 
 pa}'ing lands. 1 
 
 in paddy. 
 
 
 TELIS. 
 
 KALAMS. 
 
 1. Palaiyur (Inganadu) 
 
 1251 
 
 12,530 
 
 2. Arappar do. 
 
 mi 
 
 10,745 
 
 3. Kirandevankudi in Inganadu . . 
 
 41 
 
 4,070 
 
 4. ' do, 
 
 21f 
 
 2,183 
 
 6. do. 
 
 115 
 
 11,526 
 
 6, Tannirkunram do. ... 
 
 34 
 
 3,378 
 
 7. Kirvadugakkudi do. 
 
 26^ 
 
 2,600 
 
 8. do. 
 
 6f 
 
 674 
 
 9. TJsikkannangudi do. 
 
 5^ 
 
 518 
 
 10. VadaviraiyanpaHam do. 
 
 23| 
 
 2,393 
 
 1 1 . Arakkankudi (Tirunaraiyurnadu) 
 
 * • 6| 
 
 656 
 
 12. Pidaraseri do. .... 
 
 5|- 
 
 535 
 
 13. Nerkuppai (Tiramunadu) .. .. .. 
 
 37 
 
 3,722 
 
 14. Maruttuvakkudi (Innambarnadu) 
 
 29f 
 
 2,967 
 
 15. Tiruttevankudi (Tiruvalinadu) 
 
 29f 
 751 
 
 2,900 
 
 16. Anpanur (Mipalaru) 
 
 5,850 
 
 17. Ingaiyur (Kilpalaru) 
 
 42^^ 
 
 4,278 
 
 18. Panamangalam ( Kilpalaru) 
 
 40: 
 
 4,072 
 
 19. Sattanpadi do. 
 
 18:- 
 
 1,883 
 
 20. do. 
 
 4^ 
 
 469 
 
 21. Mandottam do. 
 
 14i 
 
 1,456 
 
 22 . Iraiyanseri do. 
 
 11|. 
 
 1,169 
 
 23. Venkonkudi do. 
 
 48 
 
 4,784 
 
 24. Maganikudi do. 
 
 23 
 
 2,315 
 
 25. Siru Semburai do. 
 
 6 
 
 612 
 
 26. Turaiyur .do. 
 
 149J 
 
 14,888 
 
 27. Karimangalam do. 
 
 11 
 
 1,083 
 
 Note. — The denomination in which the extent of lands mentioned in the inscriptions is 
 given, has not been specifically stated, but it is assumed to be " Velis " (1 veli = 6| acres) the 
 local land measure in use in the Tanjore district from time immemorial. The " kalam " 
 grain 'measure referred to is equivalent to 12 adavallan merkals. An adavallan is a 
 somewhat smaller merkal than that now in use. The old merkal was reported in the 
 beginning of the century to contain 192 tolas of rice. The present merkal contains 240 
 tolas. 
 
 '3 and '* Fragrant shrubs. 
 
 '5 Iritveli is a shrub, the roots of which are very fragrant.
 
 7i^ 
 
 SECTION II.— THE CONDITION OF THE PRESIDENCY 
 AT THE END OF THE 18th CENTURY WHEN MOST 
 OF THE PROVINCES OF SOUTHERN INDIA WERE 
 ACQUIRED BY THE BRITISH. 
 
 (A.) — Extracts from official reports showing the condition of the several 
 districts at the time they came under British administration. 
 
 Northern Circars — Ganjam, Vizagapatam, Goddvari {acquired from 
 the Nizam in 1766), Kistna {acquired from the Nizam in 1759 and 1768), 
 Palnad {acquired from the Nabob of Carnatic in 1801).— The zemindari 
 lands are situated in the hill country of the. western frontier, and in 
 the plains between the hills and the sea. The hill zemindars, secure 
 in the woody and unwholesome heights which they inhabited, and 
 encouraged by the hope of an eventual asylum in the dominions of 
 the Nizam or of the Rajah of Berar, had often furnished examples of 
 successful depredation and unpunished revolt. They were surrounded 
 by military tenants, whose lands were held on stipulations of -personal 
 service, and whose attachment to their chiefs was increased by the 
 bond of family connection. These zemindars consisted of three classes r 
 First, the Velmas of Tellinga origin, who were driven from the Carna- 
 tic in the year 1652 by the Muhammadan arms, and who established 
 themselves on the borders of the Kistna. Second, the Rachewars, of 
 the race of ancient sovereigns of Orissa, who were also compelled by ■ 
 the Muhammadans to relinquish the plains of the Circars, and retired 
 to the highland woods that formed their western frontier. Their pos- 
 sessions are principally situated to the north of the Coddvari. Third, 
 the Wooriars being petty chieftains of the military tribe, who, after 
 the overthrow of the empire of Orissa by the Muhammadans, were 
 enabled, from their local situation, to acquire an independent jurisdic- 
 tion. Their possessions are chiefly situated in the highlands in the 
 northern division of Chicacole. 
 
 The zemindars in the plains could boast of no higher extraction 
 than being descended from the officers and revenue agents of the 
 sovereigns of Orissa, who were employed by the Musalmdn conquerors 
 in the management of their new acquisitions, and who appear to have 
 first acquired lands and influence, after the conquest of Aurangzeb, 
 and during the distracted administration of his children. 
 
 The military force of the zemindars, like that maintained by the 
 Poligars in the modern possessions under the Madras Oovernment, con- 
 sisted of three descriptions. First, the Common peons, who were paid 
 in money and whose constant attendance was expected. Secondly, 
 the Mocassa peons, who were paid by grants of land, subject to a quit- 
 rent only. Thirdly, the Mannoverty peons, who consisted of military 
 tenants of a higher order, and who were bound to bring tl^eir adherents
 
 XXI 
 
 with them to the field. At the time the Cirears came into the hands 
 of the Company, the zemindars were, for the most part, in a very 
 irregular state of subjection to Nizam Ally. During the weakness of 
 his Government and that of his predecessors, they had embraced every 
 opportunity to extend their power, and to assume a degree of independ- 
 ence incompatible with any other character than that of tributary 
 chiefs. In the pursuit of these views, they were assisted by the suc- 
 cessive wars and contentions for empire, which followed the death of 
 Aurangzeb in 1707. Amidst these convulsions arose a dispute for the 
 succession to the soubahship of the Deccan, in which Nizam-ul-Mulk, 
 by maintaining himself in opposition to the orders of the Moghul, 
 excited the zemindars to disregard an authority, which then possessed 
 not the means of enforcing their obedience. During the period of 
 Nizam-ul-Mulk's usurpation, little progress was made in reducing these 
 countries to a state of order ; and a second contest for the Government 
 of the Deccan arising upon his death in 1749, the confusion of the 
 internal Government was continued and increased. Such was the state 
 of the Northern Cirears when obtained by the French. At the com- 
 mencement of their administration, they made the Zemindars feel the 
 weight of their power ; bat being called upon to march their troops into 
 different parts of the country, for the purpose of supporting Salabut 
 Jung, before their authority was established, they were soon driven to 
 the necessity of temporizing with those they had attempted to subdue, 
 and disorders ensued, which prevailed from the time the French were 
 expelled the Cirears. They reverted to the Government of the Nizam, 
 under whom they continued to the period when they were transferred 
 to the 'linglish East India Company. In that interval, the whole sys- 
 tem of internal management had become disorganized. Not only the 
 forms, but even the remembrance of civil authority, seemed to be 
 wholly lost 
 
 By the custom of the Hindoo Government, the cultivators were 
 entitled to one-half of the jDaddy produced (that is, grain in the husk) 
 depending upon the periodical rains. Of the crops from the dry grain 
 lands, watered by artificial means, the share of the cultivator was about 
 two-thirds. These were the proportions which generally obtained ; but 
 particular castes were allowed a larger share, as well as strangers, that 
 is, those ryots who were not fixed residents in the villages. Before the 
 harvest commenced the quantity of the crop was ascertained in the 
 presence of the inhabitants and village servants, by the survey of per- 
 sons unconnected with the village, who, from habit, were particularly 
 skilful and expert in judging of the amount of the produce, and who, 
 in the adjustment of this business, were materially aided by a reference 
 to the produce of former years, as recorded by the accountants of the 
 villages. The cultivators were at liberty, if they thought it necessary, 
 to make another survey by people of their own ; and if any material 
 difference appeared in the two estimates, a third account was taken, 
 under the orders of the village officers. The quantity which belonged 
 to the Government being thus ascertained, it was received in kind or in 
 money. Before the division took place, certain deductions were made 
 from the gross produce, which the Committee will hereafter explain.
 
 Of the plantation or garden culture, which was of greater value than 
 the other descriptions of produce, no larger portion was demanded from 
 the ryots than one-fourth to one-eighth of the entire yearly crop, 
 according to the additional expense, trouble and time required in 
 bringing such articles to maturity, and the distance and hazard of 
 carrying them to market. The rule with respect to these superior 
 articles, as well as small grains, was to assess them with a fixed money- 
 rent, not liable to fluctuation, as the produce might be more or less. 
 
 Such were the rights of the ryots according to the ancient usage of 
 the country. In consequence, however, of the changes introduced by 
 the Muhammadan conquest, and the many abuses, which later times had 
 established, the share really enjoyed by the ryots was often reduced to 
 a sixth, and but seldom exceeded a fifth ; for instead of the former usage, 
 the expedient of an impost originally founded on a measurement of the 
 arable land, and of additional assessments in proportion to that impost, 
 was generally adopted, and the amount of such additional assessments 
 had no bounds, but those which limited the supposed ability of the 
 husbandman. In those parts of the country where the practice of 
 receiving rents in kind, or by a monied valuation of the actual produce, 
 still obtained, the cultivators were reduced to an equally unfavorable 
 situation by the arbitrary demands and contributions to which they 
 were subjected beyond the stipulated rent. The effects of this unjust 
 system were considerably augmented by the custom which had become 
 common with the zemindars, and to which your Committee have already 
 alluded, of sub-renting their lands to farmers, whom they armed with 
 unrestricted powers of collection, and who were thus enabled. to dis- 
 regard, whenever it suited their purpose, the engagements they entered 
 into with the ryots, besides practising every species of oppression, which 
 an unfeeling motive of self-interest could suggest. If they agreed with 
 the cultivators at the commencement of the year for a rent in money, 
 and the season proved an abundant one, they then insisted on receiving 
 their dues in kind. When they did take their reuts in specie, they 
 hardly ever failed to collect a part of them before the harvest time had 
 arrived and the crops were cut, which reduced the ryots to the neces- 
 sity of borrowing from money-lenders at a heavy interest of 3, 4 and 5 
 per cent, per month, the sums requisite to make good the anticipated 
 payments that were demanded of them. If from calamity or other 
 cause the ryots were the least remiss in the discharge of their rents, 
 the officers of the renters were instantly quartered upon them, and these 
 officers they were obliged to maintain until they might be recalled on 
 the demand being satisfied. It was also a frequent practice with the 
 renters to remove the inhabitants from fertile lands, in order to bestow 
 them on their friends and favourites ; and to oblige the ryots to assist 
 them, when they happened to be farmers, in the tilling of their lands, 
 and to furnish them gratuitously with laborers, bullocks, carts and 
 straw. 
 
 . In addition to the assessment on the lands, or the shares of their 
 produce received from the inhabitants, they were subject to the duties 
 levied on the inland trade, which were collected by the renters under 
 the zemindars. These duties, which went by the name of Sayer, as 
 they extended to grain, to cattle, to salt and all the other necessaries of 
 life passing through the country, and were collected by corrupt, partial,
 
 XXUl 
 
 and extortionate agents, produced the worst effects on the state of 
 society, by not only checking the progress of industry, oppressing the 
 manufacturer, and causing him to debase his manufacture, but also by 
 clogging the beneficial operations of commerce in general, and abridg- 
 ing the comforts of the people at large. This latter description of 
 imposts was originally considered as a branch of revenue too much 
 exposed to abuses to be entrusted to persons not liable to restraint and 
 punishment. It was, therefore, retained under the immediate manage- 
 ment of the Government. The first rates were easy, and the custom- 
 houses few ; but in the general relaxation of authority prevailing in the 
 (Jircars, this mode of raising revenue for the support of Government was 
 scandalously abused. In the course of a little time, new duties were 
 introduced under the pretence of charitable and religious donations, as 
 fees to the chokedars or account-keepers, guards and other officers at 
 the stations ; as protection money to a zemindar, or as a present to those 
 who farmed the duties. Not only had the duties been from* time to 
 time raised in their amount, and multiplied in their number, at the 
 discretion of the zemindars and the renters under them, but they were 
 at length levied at almost every stage, and on every successive transfer 
 of property. Uniformity in the principles of collection was completely 
 wanting ; a different mode of taxation prevailing in every district, in 
 respect of all the varieties of goods and other articles subject to impost. 
 This consuming system of oppression had, in some instances, been 
 aggravated by the Company's Government, which, when possessed of a 
 few factories, with a small extent of territory around them, adopted the 
 measure of placing chokies or custom stations, in the vicinity of each, 
 for the purpose of ascertaining the state of trade within their own 
 limits, as well as to afford them a source of revenue Under the head 
 of Sayer revenue was also included a variety- of taxes indefinite in their 
 amount, and vexatious in their nature, called moiurpha ; they consisted 
 of imposts on houses, on the implements of agriculture, on looms, on 
 merchants, on artificers, and other professions and castes. — [Extract 
 from the Fifth Report of the ParUamentary Committee for East India 
 afairs, 1813.) 
 
 Nellore District {acquired from the Nabob of Carnatic in 1801), — The 
 district of Nellore did not suffer much in comparison with the rest of 
 the Carnatic in the wars which took place in the latter half of the 18th 
 century ; and being exempt from the presence of armies, was saved from 
 the devastation and drain on the population inseparable therefrom. Its 
 proximity to the seat of Government, however^ exposed it in a peculiar 
 degree to the abase and mis-government which characterised the 
 Nabob's durbar. The mass of the people were cultivators who were 
 ground down by the renters and left nothing but their ploughs and 
 cattle. There was no monied class. The head inhabitants who had 
 been sub-renters had amassed some wealth, which they hoarded. 
 
 Persons who lived by trade were few Eoads, properly 
 
 so called, there were none and the lines of traffic were infested by 
 robbers and dacoits. The trade of the district was unimportant and the 
 only outlet for it was by the sea. The chief commodities were grain 
 and tobacco and some cloth, while cattle were exported in some quantity 
 principally to Hyderabad. The trade in cloth was the most considerable 
 at one time. There were a number of Moghul merchants who bought 
 for the market in Bassora and the Persian Gulf, but the Englisli
 
 XXIV 
 
 obtained access to those markets about 1 800 ; and the Indian merchan- 
 dise being undersold, the trade declined. The grain traific was not 
 great. The demand was chiefly in the southern districts and the only 
 means of transport by sea, on native craft ; and the winds prevailing at 
 the harvest season being contrary, the transport was precarious and the 
 trade small. The enormous expense of land carriage was jjrohibitive. 
 Carts were not obtainable. All goods were conveyed on bullocks (the 
 cost of transporting 1 putti of grain was 1 star pagoda and 5 fanams for 
 every 8 miles in 1805. This is about one-third of the average price 
 of that quantity ruling throughout the district). These difficulties, 
 combined with oppressive customs and other taxation and the insecurity 
 of the roads, completely paralysed trade. The confusion and uncer- 
 tainty of the revenue system ; the oppression of the renters, themselves 
 the victims of the rapacity of the Nabobs and compelled to recoup 
 themselves by exactions from their people ; the fraud and venality which 
 had infected all ranks ; the poverty of the cultivators who were nine- 
 tenths of the community ; their ignorance and apathetic indifference to 
 their own improvement ; the stagnation of trade and manufacture conse- 
 quent on restrictive taxation and general insecurity ; the depredations of 
 Poligars and Kavalgars, the supposed guardians of the public security ; 
 the total want of a system of judicature ; all these combined to produce 
 a state of things wretched in the extreme, and from which it would be 
 vain to hope for sudden or rapid improvement. — {The Nellore District 
 Manual.) 
 
 Ceded Districts — Bellari/ and Cuddapah (acquired from the Nizam in 
 1800). — The state of the districts in 1800, when they were ceded by the 
 Nizlam, has been thus described : Probably no part of Southern India 
 was in a more unsettled state or less acquainted either by experience 
 or by tradition with the blessings of settled Government, the collection of 
 the revenue being entirely entrusted to zemindars. Poligars and potails 
 each of these became the leader of a little army and carried on destruc- 
 tive feuds with the villages immediately contiguous to him. Bands of 
 robbers wandered through the country, plundering and murdering such 
 travellers as refused to submit to their exactions, while the Grovernment, 
 conscious of its weakness, scarcely attempted to interfere. It is com- 
 puted that in the year 1800, when the Ceded districts were transferred 
 to the Company's rule, there were scattered through them, exclusive of 
 the Nizam's troops, 30,000 armed peons ; the whole of them, under the 
 command of 80 Poligars, subsisted by rapine and committed everywhere 
 the greatest excesses. 
 
 Kurnool {acquired from the Nabob of Kurnool, 1838). — It is impos- 
 sible to draw out any history of the revenue management of the country 
 during the time of the Nabobs. There were no laws between the 
 governing and the governed, the taxer and the taxed, except the ruler's 
 own will. The little that we can learn of the internal economy of the 
 country, before the immediate rule of the British, shows us that the 
 manner of imposition of the revenue was most arbitrary and the collec- 
 tion most iniquitous. The whole known history, with the honorable 
 exception of Manauwar Khan's rule, is but a series of acts of oppression 
 and violence on the part of the Nabob, and passive resistance or flight 
 on the part of the people. Mr. Blane, the Commissioner, on the 
 assumption of the country, constantly mentions these facts and shows
 
 XXV 
 
 that the population was about one-half in proportion to that of the 
 surrounding districts. There are, however, now few records of those 
 times extant. The story of their destruction is amusing. The British 
 soldiers who were employed in installing Manauwar Khan on the 
 throne took a fancy to the cloths in which the records were wrapt and 
 pilfered them, throwing the records into inextricable confusion. When 
 Manauwar Khan was fairly seated on the throne, he tried to re-arrange 
 them ; but finding the trouble too great, he employed all his elephants 
 and camels for some days to throw them into the river. That flowing 
 tide carried down in its bosom the evidence of many a deed of oppres- 
 sion and many a by-gone story of woe ! This act of Manauwar Khan 
 the Mild has effectually thrown the cloak of oblivion over the doings of 
 his ancestors. In this oblivion we perforce must leave them. 
 
 It will be, however, as well to record a few of the acfs of the last 
 Nabob, to show the state of the country when it was first assumed. 
 The revenue administration was in the greatest disorder and was carried 
 on without any system whatever. No public accounts were kept except 
 by the village officers, and the amount of remittances was carried 
 straight into the Nabob's zenana, that being his only treasury. The 
 amount to be paid by each village was changed according to the 
 caprice of the Nabob, and he would increase his demand without any 
 ostensible reason. When his demands passed all bounds, the people 
 would fly. Then the Nabob would allure them back with promises, 
 and give them a cowle to re-assure them, but as soon as the crops were 
 ready to be cut, he would seize the produce, breaking through his word 
 without scruple. In Nandy^l, where there is some valuable cultivation 
 under a fine tank, he played the people this trick for two or three years, 
 until at last they threw up the land, leaving the pariah servants of the 
 village to carry on the cultivation as best they could for the Nabob. 
 In another village, Nannur, he added Rs. 5,000 to the demand, because 
 a horse of that value died there. The inhabitants fled and left the 
 Nabob to continue the cultivation with his own servants and bullocks. 
 — {Mr. Morris' Report on the settlement of the Eurnool district.) 
 
 Ghingleput {acquired in 1765 and 1801). — The Jaghire was twice 
 invaded by Hyder Ali ; in 1768, and in the war of 1780, when he 
 entered it with fire and sword. On the termination of the latter war, 
 in 1784, hardly any other signs were left in many parts of the country 
 of its having been inhabited by human beings, than the bones of the 
 bodies that had been massacred, or the naked walls of the houses, 
 choultries, and temples, which had been burnt. To the havoc of war 
 succeeded the affliction of famine ; and the emigrations arising from 
 these successive calamities nearly depopulated the district. 
 
 The system of management in the Jaghire, while it was rented by 
 the Nabob, was of the same oppressive and unjust character which 
 marked the administration of affairs in his own territory, the Carnatic. 
 It exhibited throughout a scene of boundless exaction and rapacity on 
 the part of the Government and its officers ; of evasion on that of the 
 inhabitants ; or of collusion between them and the public servants ; 
 while the revenue diminished every year with the cultivation. The 
 husbandman was entitled to a certain standard share of the crop, but a 
 considerable proportion of it was extorted from him under the varied 
 devices of u§iial assesumenty fixed assessment and additional assessment^
 
 XXVI 
 
 durbar Mirch, and by private contributions levied by the revenue 
 officers for their own use. — (Extract from the Fifth Report of the Parlia- 
 mentary Committee for the East India affairs, 1813.) 
 
 Trichinopoly {acquired in 1792). — Under the Nabob's Government, 
 the revenue had been collected in the irrigated taluks by a division of 
 the produce with the ryots. As a general rule, the crops were equally 
 divided between the Government and the cultivators^ after a deduction 
 ' of 5 per cent, of the gross produce had been made for reaping expenses. 
 This was the ordinary rate of division {rdram), but in lands irrigated 
 from tanks and also in those which, from their position, were liable 
 to have the crops damaged by inundations, the ryots were allowed to 
 take 55 to 58 per cent, of the gross produce. In newly formed wet 
 lands the cultivator's share {kudivaram) was 60 per cent, and in those 
 irrigated by picottahs and other mechanical contrivances, it varied from 
 65 to 68f per cent. The allowances [sutantrams) paid to the village 
 artificers, karnams, watchers, cultivating slaves {Paliars), and others 
 varied from 23 to 28 per cent, of the gross produce, and were paid by 
 the inhabitants alone out of their share. 
 
 In the dry portions of the country, the revenues were collected in 
 some villages according to the sorts of grains cultivated, while in others 
 the assessment varied according to the nature of the soil. The demands 
 were, however, made in a most arbitrary manner, and were invariably 
 increased if the outturn of the crops happened to be better than usual. 
 The collections in these villages were made in money, and not in kind, 
 as in the wet villages. 
 
 The sale of grain was a strict monopoly, the price being fixed by 
 the manager. AH importation was forbidden, and it was an offence, 
 punishable by exorbitant fines, even to lend a neighbour such small 
 quantities of grain as he might require for his immediate support. 
 The grain was taken from the cultivators at the rate of 7 and 8 
 fanams ' per kalam ^, and sold back to them from Government granaries 
 kept up in different parts of the district at 9 and 10 fanams per kalam. 
 
 In some remarks that he makes on the system of government pre- 
 vailing in Trichinopoly before the English got possession of the 
 country, Mr. Wallace remarks that, under the system then in force, 
 the people never knew when the demands on them would cease. The 
 so-called fixed assessments seemed to have been imposed merely with 
 the view of inducing the ryots to cultivate, in the hope that nothing 
 beyond the settled amount in money or grain would be exacted from 
 them. In this hope they were, however, invariably disappointed, and 
 he asserts that, if in any one year the revenues were actually collected 
 according to the fixed rates, this was done merely with the view of 
 inducing the ryots, by this apparent moderation, to increase the extent 
 of their cultivation in the succeeding year, and thus give the managers 
 or their sub-renters an opportunity of doubling their exactions. — 
 {Trichinopoly District Manual.) 
 
 Tinnevelly {acquired in ld92 and 1801). — Colonel Fullerton in 1783 
 wrote : — *' The last, but not the least, considerable of your southern 
 
 ^ There were 30 fanams to the pagoda, so that one fanam equalled 1 anna 10^ pies of 
 our present currency. i 
 
 ' The kalam contained 39 measures of 100 cuhic inches.
 
 xxvu 
 
 territories is Tiunevelly. It is a hundred and fifteen miles in length and 
 seventy miles in breadth. A ridge of inaccessible mountains divides 
 it on the north from the wild valleys of Watrap and Outumpollam, 
 belonging to Tippoo Sultan. It stretches to the confines of Madura 
 and Kamnad on the north-east and east, reaches to the sea upon the 
 south, and borders on the west with the Rajahship of Travancore, 
 both terminating near Cape Comorin. Nature has been bountiful to 
 this province. Its surface is generally flat, from the sea-coast till it 
 approaches the mountains on its northern boundary. The rivers by 
 which it is intersected ensure luxuriant crops of rice, and the driest 
 parts yield cotton in abundance. The productions of the neighbouring 
 island of Ceylon would flourish here, and thus render us the rivals of 
 the Dutch in the cinnamon trade ; but the peculiar tenure under which 
 the country has been held, the convulsions it has endured from the 
 first intrusions of the Mussalmans in the course of this century, and the 
 depravity of its rulers, have counteracted the benefits of nature. Even 
 when a native Eajah governed Tinnevelly, the flat and open country 
 only was reduced. This was let for specific sums to great renters, who 
 were invested with despotic powers and harassed the peaceful subjects, 
 while various leaders who possessed considerable territory maintained 
 armed forces and withheld their stipulated tribute on the first appearance 
 of disturbance. These chiefs, as well as their subjects, are called 
 Poligars ; they amount at present to 32, capable of bringing 30,000 
 brave, though undisciplined, troops into the field. They have also 
 fortified towns and strongholds in the mountains, whither they retire 
 in cases of emergency. Besides the territory that these Poligars • 
 possess under the range of hills that form the northern boundary of 
 Tinnevelly, many of them hold ample tracts in the flat and cultivated 
 country. Adverse to industry, they suffer their own possessions to 
 remain waste, while they invade each other and plunder their indus- 
 trious neighbours. Such is the dread of these ravagers, that every 
 district in the province has been forced to purchase their forbearance 
 by enormous contributions." 
 
 Of the renters employed to collect the revenue, Colonel FuUerton 
 gives the following account : — 
 
 " It was not possible for the English G-overnment entirely to repress 
 the misconduct of inferior instruments who are eager to perpetuate 
 oppression and to enforce unusual measures by unprecedented means. 
 The situation of the country rendered it necessary to continue the 
 practice of renting extensive districts to the highest bidder ; although 
 every precaution was adopted to prevent the abuse of power, still the 
 collections could not be enforced unless an unrestrained authority were 
 vested in the renter. His object, too, frequently is to ransack and 
 embezzle that he may go off at last enriched with the spoils of his 
 province. The fact is, that in every part of India where the renters 
 are established, not only the ryot and the husbandman, but the manu- 
 facturer, the artificer, and every other Indian inhabitant, is wholly at 
 the mercy of those ministers of public exaction. 
 
 " The established practice throughout this part of the peninsula has 
 for ages been to allow the farmer one-half of the produce of his crop 
 for the maintenance of his family and the recultivation of the laud, 
 while the oth^r half is appropriated to the sircar. In the richest soils,
 
 XXVlll 
 
 under the cowle of Hyder, producing three annual crops, it is hardly 
 known that less than 40 per cent, of the crop produced has been allotted 
 to the husbandman. Yet renters on the coast have not scrupled to 
 imprison reputable farmers, and to inflict on them extreme severities 
 of punishment, for refusing to accept of sixteen in the hundred, as the 
 proportion out of which they were to maintain a family, to furnish 
 stock and implements of husbandry, cattle, seed and all expenses 
 incident to the cultivation of their lands. But should the unfortunate 
 ryot be forced to submit to such conditions, he has still a long list of 
 cruel impositions to endure. He must labour week after week at the 
 repair of water-courses, tanks, and embankments of rivers. His cattle, 
 sheep and every other portion of his property are at the disposal of the 
 renter and his life might pay the forfeit of refusal. Should he presume 
 to reap his harvest when ripe, without a mandate from the renter, 
 whose peons, canakapillays and retainers attend on the occasion, nothing 
 short of bodily torture and a confiscation of the little that is left him 
 could expiate the offence. Would he sell any part of his scanty 
 portion, he cannot be permitted while the sircar had any to dispose of ; 
 would he convey anything to a distant market, he is stopped at every 
 village by the collectors of sunkum or Gabella (transit duties), who 
 exact a duty for every article exported, imported, or disposed of. So 
 unsupportable is this evil, that between Negapatam and Palghautcherry, 
 not more than 300 miles, there are about 80 places of collection, or 
 in other words, a tax is levied every ten miles upon the produce of 
 the country ; thus manufacture and commerce are exposed to disasters 
 ■ hardly less severe than those which have occasioned the decline of culti- 
 vation. 
 
 " But these form only a small proportion of the powers with which 
 the renter is invested. He may sink or raise the exchange of specie 
 at his own discretion ; he may prevent the sale of grain, or sell it at the 
 most exorbitant rates ; thus, at any time he may, and frequently does, 
 occasion general famine. Besides maintaining a useless rabble, whom 
 he employs under the appellation of peons, at the public expense, he 
 may require any military force he finds necessary for the business of 
 oppression, and few inferior officers would have weight enough to 
 justify their refusal of such aid. Should any one, however, dispute 
 those powers, should the military officers refuse to prostitute military 
 service to the distress of wretched individuals, or should the Civil 
 Superintendent (the ' Superintendent of Assigned Revenues ', the 
 Collector of that time), remonstrate against such abuse, nothing could 
 be more pleasing to the renter ; he derives from thence innumerable 
 arguments for non-performance of engagements, and for a long list of 
 defalcations. But there are still some oLher not less extraordinary 
 constituents in the complex endowments of a renter. He unites, in his 
 own person, all the branches of judicial or civil authority, and if he 
 happens to be a Brahmin, he may also be termed the representative of 
 ecclesiastical jurisdiction. I will not enlarge on the consequences of 
 thus huddling into the person of one wretched mercenary of those 
 powers that ought to constitute the dignity and lustre of supreme 
 executive authority.^' — {Hislory of TinneveUy by Bishop CaMweU.) 
 
 Salem {acquired in 1792 fro7n Tippu Sultan). — That the generality of 
 the peasants who inhabit the Bauramahl are extremely indigent is a
 
 XXIX 
 
 truth of which dailj experience convinces us. The system of oppres- 
 sion, which obtained in the last Government, and the frequency of 
 destructive wars, have entailed upon them a state of poverty from which 
 nothing but the operation of time, under the foatei'ing influence of 
 moderate taxation, mild laws and the impartial distribution of justice, 
 can relieve them. Far removed from the seat of Government and 
 seldom obtaining substantial redress, even though their complaints 
 should reach the throne, patient of injury because hopeless of relief, and 
 rarely possessing the means by which the venal award might be pro- 
 cured, they were subjected to the unrestrained hand of oppression, 
 which, insatiable in its grasp, preyed indiscriminately on their property, 
 palsied the very nerve of industry, and implanted in their minds a 
 distrust of the intentions of their rulers, which better treatment and 
 more attention to their circumstances have scarcely been able to eradi- 
 cate. The undistinguishing ravages of war, ever fatal to the industrious 
 husbandman, brought with them an accumulation of distress. Exposed 
 from their centrical situation to the incursions of contending armies and 
 the depredations of unprincipled Poligars, equall}^ mistrusting the power 
 that invaded and the friends who ought to protect them from violence, 
 they had no safety but in flight, no security but what was afforded by 
 inaccessible mountains, from the tops of which they beheld the destruc- 
 tion of their former habitations. — {Mr. Graham, Assistant Collector, 
 Salem District— 1797 .) 
 
 Malabar (acquired in 1792 from Tippu Sultan). — '' Malabar," says 
 Mr. Brown, Commercial Resident, " when Hyder invaded it, was divided 
 into a number of petty Rajahships, the government of which being per- 
 fectly feudal, neither laws nor a system of revenue were known amongst 
 its inhabitants. Owing to the quarrels between the different rajahs 
 and the turbulent spirit of the Nair chiefs, who were frequently in arms 
 against each other, the state of the country was little favorable to the 
 introduction of order or good government. Malabar, however, was 
 then a country very rich in money. For ages the inhabitants have 
 been accumulating the precious metals that had been given them for the 
 produce of their gardens. Hyder's only object, in the cnnntries that he 
 conquered, was to acquire money, and, provided he got plenty of that, 
 he was very indifferent as to the means which his officers took to obtain 
 it. Immediately after the conquest of Malabar, vast sums were extorted 
 from its inhabitants by the military officers and by the Canarese Brah- 
 mins placed over the revenues. Of these extortions Hyder received a 
 share ; and no w^ant of a system of revenue was felt until these sources 
 began to fail. When he found the assets from Malabar fall short of its 
 charges, he listened to proposals from the rajahs to become tributaries. 
 An estimate of the revenue was made by the abovementioned Brahmins, 
 who, as many of them were to remain with the rajahs as spies on their 
 actions, took care that the estimate should be so formed as to leave a 
 large sum to be divided between them and the ra,jahs. By this new 
 order of things, these latter were vested with despotic authority over the 
 other inhabitants, instead of the very limited prerogatives that they 
 had enjoyed by the feudal system, under which they could neither 
 exact revenue from the lands of their vassals, nor exercise any direct
 
 XXX 
 
 authority in their districts. Thus the ancient constitution of govern- 
 ment (which, although defective in many points, was favorable to 
 agriculture from the lands being unburthened with revenue) was in a 
 great measure destroyed, without any other being substituted in its 
 room. The rajah was no longer, what he had been, the head of a feudal 
 aristocracy with limited authority, but the all-powerful deputy of a 
 despotic prince, whose military force was always at his command, to 
 curb or chastise any of the chieftans who were inclined to dispute or 
 disobey his mandates. The condition of the inhabitants under the 
 rajahs thus reinstated in their governments was worse than it had been 
 under the Canarese Brahmins, for the rajahs were better informed of the 
 substance of individuals and knew the methods of getting at it. In 
 short, the . precarious tenures by which the rajahs held their station, 
 joined to the uncontrolled authority with which they were vested, 
 rendered them to the utmost degree rapacious ; and not even a pretence 
 was set up for exacting money from all such as were known to have 
 any. There were no laws ; money insured immunity to criminals ; and 
 innocent blood was often shed by the rajahs' own hands under the 
 pretence of justice. In the space of a few years many of them amassed 
 treasure to an amount unknown to their ancestors ; and had it not been 
 for the dread that they entertained of Hyder's calling them to an 
 account of their ill-gotten wealth, their situation under them was better 
 than that which they held before the invasion. The country, however, 
 was daily declining in produce and population, insomuch so that, at the 
 accession of Tippoo, I have reason to conclude, from my own observa- 
 tions, and from the inquiries which I then made, that they were reduced 
 to one-half of what they had been at the time of Hyder's conquest. But 
 still greater calamities were reserved for the unfortunate inhabitants of 
 this country in the reign of the Sultan. During the government of his 
 father, the Hindus continued unmolested in the exercise of their reli- 
 gion, the customs and observances of which, in many very essential 
 points, supply the place of laws. To them it was owing that some 
 degree of order had been preserved in society during the changes that 
 had taken place. Tippoo, on the contrary, early undertook to render 
 Islaraism the sole religion of Malabar. In this cruel and impolitic 
 undertaking he was warmly seconded by the Moplahs, men possessed of 
 a strong zeal and of a large share of that spirit of violence and depre- 
 dation which appears to have invariably been an ingredient in the 
 character of the professors of their religion in every part of the world 
 where it has spread. All the confidence of Sultan was bestowed on 
 Moplahs, and in every place they became the officers and instruments of 
 government. The Hindus were everywhere persecuted and plundered 
 of their riches, of their women, and of their children. All such as could 
 flee to other countries did so ; those who could not escape took refuge in 
 the forests, from whence they waged a constant predatory war against 
 their oppressors. To trace the progress of these evils would carry me 
 too far. I mention them only for the purpose of showing how the 
 ancient government of this country was at last completely destroyed, and 
 anarchy was introduced. The Moplahs never had any laws nor any 
 authority except in the small district of Cannanore, even over their own 
 sect, but were entirely subject to the Hindu chiefs, in whose dominions 
 they resided. Tippoo's code was never known beyond the limits of 
 Calicut. During this period of total anarchy, the number of Moplahs
 
 XXXI 
 
 was greatly increased, multitudes of Hindus were circumcised by force, 
 and many of the lower orders were converted. By these means, at the 
 breaking out of the war conducted by Lord Cornwallis, the Hindu 
 population was reduced to a very inconsiderable number. The descend- 
 ants of the rajahs were then invited to join the Company's forces ; and, 
 when Tippoo's army had been expelled from Malabar, many Nairs 
 returned from their exile in Travancore ; but their number was trifling 
 compared with what it had been at the commencement of the Sultan's 
 reign. 
 
 " From this short sketch it is evident that this province, at the time 
 it was ceded, had really no form of government, and required a new 
 system to be framed for its use. The feudal system was broken ; and 
 no other kind of administration was known to the rajahs who laid claim 
 to their respective districts than that which they had exercised or 
 witnessed under Hyder, and which was a compound of corruption and 
 extortion. To these men, however, the most unfit that could have been 
 selected, was the whole authority of government over the natives 
 entrusted. Two evils of great magnitude were the consequence of this 
 measure ; the extortions and corruptions of the preceding administra- 
 tions were continued, while the ancient feudal institutions of military 
 service were revived, and all the Nairs thereby attached to the different 
 chieftains, and these again to the rajahs. Nothing could exceed the 
 despotic rapaciousness of these men to oppose which there was no 
 barrier ; for it is well known that none of the inhabitants dare complain 
 against a rajah, whatever injuries they may have sustained, assassina- 
 tion being a certain follower of complaint. It is not surprising that 
 under such rulers agriculture did not flourish, and that the flelds now 
 cultivated (which in some districts bear but a small proportion to those 
 that are waste) should yield but very indifferent crops." 
 
 South Canara {acquired from Tippoo Sultan in 1799). — Canara has, 
 however, now completely fallen from this state of prosperity. The evils 
 which have been continually accumulating upon it since it became a 
 province of Mysore have destroyed a great part of its former population, 
 and rendered its remaining inhabitants as poor as those of the neigh- 
 bouring countries. Its lands, which are now saleable, are reduced to a 
 very small portion and lie chiefly between the Kundapur and Chandra- 
 giri rivers, and within five or six miles of the sea. It is not to be 
 supposed, however, that the whole of this tract can be sold, but only that 
 saleable lands are scattered throughout every part of it, thinner in some 
 places, and thicker in others, particularly in the Mangalore district. 
 There is scarcely any saleable land, even on the sea-coast, anywhere to 
 the northward of Kundapur or anywhere inland from one end of Canara 
 to the other, excepting on the banks of the Mangalore and some of the 
 other great rivers. In the vicinity of the ghdts, the lands are not only 
 unsaleable, but the greater part of them is waste and overgrown with 
 wood. It is reckoned that the population of the country has been 
 diminished one-third within the last forty years ; and there can be little 
 doubt but that its property has suffered a much greater reduction. 
 Grarisappa, Ankola, and Kundapur, formerly flourishing places, contain 
 now only a few beggarly inhabitants ; Honawar, once the second town 
 in trade after Mangalore, has not a single house ; and Mangalore itself 
 is greatly decayed.
 
 XXXll 
 
 It may be said that this change has been brought about by the 
 invasion of Hyder ; by the four wars which have happened since that 
 event ; by Tippoo himself destroying many of the principal towns upon 
 the coast and forcing their inhabitants to remove to Jamalabad and 
 other unhealthy situations near the hills ; by his seizing in one night 
 all the Christians, men, women and children, amounting to above sixty 
 thousand, and sending them into captivity to Mysore, from whence 
 one-tenth of them never returned ; by the prohibition of foreign trade ; 
 and by the general corruptioD and disorder of his government in all its 
 departments. These circumstances certainly accelerated the change, 
 but taken altogether, they probably did not contribute to it so much as 
 the extraordinary augmentation of the land rent. 
 
 A moderate land rent carries in itself such an active principle of 
 prosperity that it enables a country to resist for a long time all the 
 evils attending a bad government, and also to recover quickly from the 
 calamities of war. When it is fixed and light, the farmer sees that he 
 will reap the reward of his own industry ; the cheerful prospect of 
 improving his situation animates his labours, and enables him to 
 replace in a short time the losses he may have sustained from adverse 
 seasons, the devastations of war and other accidents. But when an 
 oppressive rent is superadded to all the other mischiefs of a tyrannical 
 Government, the country, however flourishing it may ever have been, 
 must sink under them at last, and must hasten to rain at a more rapid 
 pace every succeeding year. 
 
 Hyder ruined Oanara, a highly improved country, filled with 
 industrious inhabitants enjoying a greater proportion of the produce of 
 the soil and being more comfortable than those of any province under 
 any native power in India; but instead of observing the wise and 
 temperate conduct which would have secured to it the enjoyment of 
 these advantages, he regarded it as a fund from which he might draw, 
 without limit, for the expenses of his military operations in other 
 quarters. The whole course of the administration of his deputies seems 
 to have been nothing but a series of experiments made for the purpose 
 of discovering the utmost extent to which the land rent could be 
 carried, or how much it was possible to extort from the farmer without 
 diminishing cultivation. The savings accumulated in better times 
 enabled the country to support for some years the pressure of conti- 
 nually increasing demands, but they could not do so for ever ; failures 
 and outstanding balances became frequent before his death. 
 
 The same demand and worse management increased them in the 
 beginning of Tippoo's reign. He was determined to relinquish no 
 part of his father's revenue. He knew no way of making up for 
 failures, but by compelling one part of the ryots to pay for the 
 deficiencies of the other ; he made them pay not only for those which 
 arose upon the cultivation of the current year, but also for those which 
 arose from the waste lands of dead and deserted ryots which were 
 annually increasing. Severity and a certain degree of vigilance and 
 control in the early part of his government kept the collections for 
 sometime nearly at their former standard, buf it was impossible that 
 they could remain so long, for the amount of land left unoccupied 
 from the flight or death of its cultivators became at last so great that 
 it could not be discharged by the remaining part of the inhabitants ;
 
 XXXIU 
 
 and the collections before the end of his reign fell short of the assess- 
 ment from ten to sixty per cent. The measure which he adopted for 
 preserving his revenue was that which most effectually destroyed it ; 
 he forced the ryots, who were present, to cultivate the lands of the 
 dead and absent ; but as the increased rent of their own lands required 
 all their care and labour, by turning a part of it to these new lands 
 the prod^e of their own was diminished, and they became incapable 
 of paying the rent of either. The effect of this violent regulation was 
 to hasten the extinction of the class of ancient proprietors or land- 
 lords ; for, many, who might still have contrived to have held that 
 rank, had they been permitted to confine their stock to the cultivation 
 of their own lands, when they were obliged to employ it in the cultiva- 
 tion of those of other people, and when the consequent decrease of the 
 produce left no surplus after paying the rent of Government, sank to 
 the state of laborers. Nothing can more strongly indicate the poverty 
 of a country than when its lands, so far from being saleable, must be 
 forced upon the cultivators, but this practice prevails more or less 
 throughout Canara, and is very genei'al everywhere to the northward 
 of Kundapur. — (8ir Thomas Munro.) 
 
 (B.) — A list of moturpha taxes levied in the village of Singanallur in 
 the Coimbatore district taken from the records Icept hy the 
 hurnam of the village. — The tax ivas levied on all persons with 
 the exception of land-holders. The following are the rates at 
 which some of the motuo-pha taxes were levied : — 
 
 Salt-tax on each kavali or pot ... 
 
 Tax on cloth-bazaars, first-class, 40 fanams . 
 
 „ on ,, second-class, 20 fanams. 
 
 „ on „ third-class, 10 fanams . 
 
 ,, on barbers, 8 fanams 
 
 „ on blacksmiths, 8 fanams ... 
 
 „ on carpenters, 8 fanams 
 
 ,, on double bullock carts, 8 fanams ... 
 
 „ on weavers, 6 fanams 
 
 ,, on pack-bullocks, 4 fanams 
 
 „ on shanars (toddy drawers), 2 fanams 
 
 „ on kurumbas (weavers in wool), 2 fanams. 
 
 ,, on washermen, 8 fanams 
 
 ,, on pariahs, 3 fanams 
 
 „ on neeladuppu (indigo vat), 8 fanams 
 
 „ on chucklers, 8 fanams 
 
 „ on oil-mills, 10 fanams 
 
 RS. 
 
 A. P. 
 
 1 
 
 7 
 
 6 
 
 . 11 
 
 12 
 
 
 
 5 
 
 14 
 
 
 
 2 
 
 15 
 
 
 
 2 
 
 5 
 
 8 
 
 2 
 
 5 
 
 8 
 
 2 
 
 5 
 
 8 
 
 2 
 
 5 
 
 8 
 
 1 
 
 12 
 
 3 
 
 . ' 1 
 
 2 
 
 10 
 
 
 
 9 
 
 5 
 
 
 
 9 
 
 5 
 
 2 
 
 5 
 
 8 
 
 
 
 14 
 
 2 
 
 2 
 
 5 
 
 8 
 
 2 
 
 5 
 
 8 
 
 2 15
 
 ixxiv 
 
 SECTION III.— THE CONDITION OF THE AGEICUL- 
 TUEAL CLASSES UNDER BEITISH ADMINISTRATION 
 DURING THE 1st HALF OF THE PEESENT CE?^TURY.. 
 
 (A.) — Extract from the " Indian Economist." 
 Land Revenue : payment in kind, or in money. 
 
 The causes of the remarkable fall in prices which has almost 
 invariably followed the transfer of territory from Native to British 
 rule, have nowhere, we think, received so satisfactory an exposition 
 as in a paper that appeared in the April number of the old Bombay 
 Quarterly Journal in 1857. We shall make no attempt to recast what 
 was there so well stated, but devote our present space to the repro- 
 duction of a part of that paper : — 
 
 *' It seems to us that there are certain prominent characters by 
 which the British system of revenue and finance is broadly marked 
 and distinguished from that of all the Native Governments which 
 have preceded it, and that in their peculiarities we shall find an ade- 
 quate explanation of the remarkable phenomenon which we are 
 now considering. The Anglo-Indian financial system differs from 
 that of the Native Governments in the following most important 
 particulars : — 
 
 " Istlij. — The payment of the army, police and other public estab- 
 lishments in cash. 
 
 " 2ndly. — The collection of the land tax in money instead of 
 wholly or partially in kind. 
 
 " Srdly. — The transfer of a portion of the Indian revenues to 
 England, for the payment of the Home charges, 
 usually and correctly styled — " The Indian Tribute." 
 
 *' 4<thly. — The creation of a funded public debt, of which the 
 interest has to be paid in cash. 
 
 " The charges to be defrayed out of the Indian revenue, being of 
 an inflexible character, could only be met in years of deficient collec- 
 tions by borrowing, and hence they involved the creation of a funded 
 public debt. But they brought about more important consequences 
 still ; for, the payment of troops and establishments and the interest of 
 the public debt in cash, of necessity, involved the collection of the 
 revenue in cash too, and the latter measure, however little thought of 
 at the time of its introduction by our Indian Land Revenue Collectors 
 and Financiers, has produced a momentous revolution in the value of 
 property and bearing of taxation in India far exceeding in degree, but 
 similar in kind to that effected in England by the return to cash 
 payments in 1819.
 
 " Under Native rule the land tax was the chief source of revenue 
 and was in great part either levied in kind, or assigned for the 
 support of troops and establishments. There was only a small portion 
 of the whole collected in money, and transferred from the local to the 
 central treasuries. The standing military force kept and regularly 
 paid by the Government was small. The bulk of the troops consisted 
 of a kind of militia furnished by jaghirdars and other landlords, to 
 whom the collection of the taxes was assigned for the support of these 
 levies and for conducting the civil administration of the districts 
 placed under their jurisdiction. The troops or retainers of these 
 feudatories were in great measure maintained on the gi'ain, forage 
 and other supplies furnished by the districts in which they were 
 located. The laud tax was in consequence either wholly or partially 
 taken in kind and what was collected in money was generally paid 
 away to parties on the spot, and thus quickly returned into circulation. 
 The hereditary revenue and police officials were generally paid by 
 grants of land on tenure of service. Wages of farm servants and 
 agricultural laborers were paid in grain. Grain also was the common 
 medium of exchange for effecting petty purchases in country towns. 
 The farmer's or laborer's wife took a basketful of grain on her head 
 to market instead of a purse of money, and therewith purchased her 
 week's supplies. The people lived in a rude and simple fashion, 
 having few wants, and knowing little of luxuries. In inland districts 
 the c}>ief imports were salt, metals, and a few luxuries for the better 
 classes ; but the value of the whole was inconsiderable and the exports 
 with which these were purchased were, of course, correspondingly 
 limited. In this state of things money was hardly wanted at all, and 
 a small supply of coin sufficed for the realization of the public revenue 
 and the settlement of commercial transactions. But while the quan- 
 tity of coin iu circulation was small, the prices of agricultural produce 
 were well sustained, owing to the limited extent of land in cultivation 
 and the large demand for food by the numerous body of the people 
 employed unproductively as soldiers, retainers, and public officers of 
 all kinds, and the difficulty of supplementing deficient harvests by 
 importations from more favored districts, through the want of good 
 roads or other facilities for the transport of bulky produce. The 
 foreign commerce of the country at large was necessarily confined 
 within very narrow limits. It was only the products of the coast 
 districts and the more valuable commodities of the interior, such as 
 indigo and manufactured goods, that could bear the expense of 
 carriage to the ports of shipment so as to admit of being exported. 
 India, at that time, coveted few of the productions of foreign countries 
 and her most important imports were the precious and common metals, 
 broad-cloths, jewels, and other luxuries for the wealthy. 
 
 " The innovations made in the revenue and financial system by 
 the British have, however, effected the most sweeping changes in all 
 of these particulars, and we shall now endeavour to trace their opera- 
 tion on the territory of a native prince passing under the sway of the 
 Company. The first steps taken were to substitute regularly-paid 
 and disciplined troops, located in military stations, for the rural 
 militia of the native feudatories, and a staff of European and native 
 officials receiving fixed salaries, in place of the former mamlutdars and
 
 XXXVl 
 
 revenue farmers with their followers, who paid themselves by per- 
 quisites and other indirect gains, but received very ti-ifling emolu- 
 ments from the treasury of the State. The next and an all-important 
 step in Anglo-Indian administration was to collect the land tax in 
 money instead of realizing it in kind, according to the practice which 
 had virtually, if not nominally, obtained to a great extent under 
 native rule. The immediate and inevitable consequence of this 
 general enforcement of money assessments was, that the amount of 
 coin, pi'eviously circulating and sufficient for the adjustment of the 
 limited transactions connected with revenue and commerce under the 
 native system, proved quite inadequate for the settlement without a 
 derangement of prices of the greatly enlarged transactions resulting 
 from the British system. Under the native system, the sale for cash 
 of a small part of the agricultural produce of a district sufficed to 
 provide for all its liabilities connected with taxation and commerce. 
 Under the British system, on the contrary, twice or, perhaps, three 
 times the quantity of produce had to be so sold in order to provide 
 for the same objects, owing to the whole amount of the land tax being 
 demanded in coin. But the supply of coin remaining as before, the 
 effect of this increased demand for it was of course to enhance its 
 price. The coin in circulation had to perform double or treble the 
 work it had accomplished before. The ryot requiring more cash to 
 pay his money assessment had, of course, to bring more produce to 
 market, which occasioned a glut and brought down prices. And this 
 state of things was aggravated by the demand for grain and forage 
 in the country markets being less than before, owing to the disband- 
 ing of the irregular force which had been kept up by the native 
 jaghirdars and other functionaries of the former Governments and to 
 the increased production due to an extension of cultivation by means 
 of these disbanded levies. Prices fell more and more until, in many 
 cases, our Collectors found it to be wholly impossible to collect the 
 full land assessment, and large remissions had to be annually made. 
 The village grain merchants, who are also the village bankers, 
 deprived of a sufficient market at their own doors, were compelled, in 
 order to find money to supply their constituents with, to seek more 
 distant markets for the disposal of the produce left upon their hands 
 in liquidation of advances previously made by them to the ryots. 
 This awakened a spirit of greater enterprise and activity among the 
 commercial classes, which was gradually communicated to the ryots, 
 and laid the germ of that active foreign trade which now advances 
 with gigantic strides, and has already penetrated into the remotest 
 recesses of the interior. This collateral benefit, conferred by the 
 British plan of administration, has fairly set free the spirit of pro- 
 gress long spell-bound in the native mind under the iron fetters of 
 Asiatic customs, far more than compensates India for the period of 
 suffering in which it originated. 
 
 " The sufferings of the rural population during this transition 
 period were, without doubt, very severe. The revenue reports of our 
 Collectors in newly-acquired territories abound with harassing des- 
 criptions of the depressed condition of the agricultural classes, and 
 with representations of the difficulties they experienced in collecting 
 the land assessment, owing to the great fall in the prices of all des-
 
 xxxvu 
 
 criptions of agricultural produce. The assessments o£ Sir Thomas 
 Munro in the Madras districts failed from this cause. So did the 
 early Revenue settlement of the Bombay territories, and also the 
 permanent settlement of Bengal, which occasioned the ruin of the first 
 proprietors. And quite recently we have had a striking example of 
 the same phenomenon in the case of the Punjab. It is stated in the 
 report of the Board of Administration for the years 1849-50 and 
 1850-51, printed for the Court of Directors, that fixed money assess- 
 ments were substituted in 1847 for the system we found in existence, 
 and that in the whole of the Punjab a reduction of the land tax, equal 
 to "25 per cent., has been effected. The demand for food has not 
 decreased ; it has probably increased ; for although the army of the 
 late Government has been disbanded, there are not, between the 
 Sutlej and the Khyber, less than 60,000 fighting men with, perhaps, 
 five times that number of camp followers. Hence there is a larg'er 
 demand than before for food over the country generally, though the 
 market round about Lahore is more limited. The labour employed 
 on canals, roads, cantonments, and other public works must cause the 
 circulation of large sums of money, and inci'ease the demand for food. 
 The pay of our army within the limits (of the Punjab) has been esti- 
 mated to be equal to one million six hundred and fifty thousand 
 pounds. The expenditure by the various civil establishments, the 
 Commissariat and Executive departments, and the different works in 
 progress under the Board, are probably equal to another million ; 
 so that nearly double the Punjab revenues are at present spent in the 
 country. In despite, however, of large reductions (of assessment), 
 the complaints during the past year on the part of the agriculturists 
 have been Uoud and general. Prices (in many villages) have fallen a 
 half. The cry of over-assessment is loud and general. There has 
 been a very general demand among the agriculturists for a return to 
 grain payments, and to a division or appraisement of the crops every 
 season. 
 
 " It is clear from these statements of the Board of Administration 
 that the specie in the Punjab must have been largely increased under 
 our rule, even if we make the most ample allowance for the re-export 
 of a portion of it, remitted by our sepoys and camp followers to their 
 homes in the older provinces. And yet, in the face of this large 
 inci'ease of coin in circulation, prices have fallen nearly 50 per cent. 
 The Board, following the example of our early Collectors, attribute 
 this decline of prices to abundant harvest and extension of cultiva- 
 tion ; but it may well be doubted whether the increase of production 
 in the Punjab, up to the time referred to in the Board^s report, had 
 more than kept pace with the increased consumption due to the 
 presence of our army, numbering with its camp followers nearly four 
 hundred thousand souls. The phenomenon of a great and sudden fall 
 of prices is not singular, or confined to the Punjab, but was equally 
 observable in other parts of India when they first passed under the 
 rule of the British Government. The fall in the former, as in the 
 latter case, will be of a lasting character, and an explanation for it 
 must be sought in some cause of wider and more enduring action than 
 the casual state of the harvest, or the extension of land under tillage. 
 These circumstances may have contributed to the effect, as already
 
 XXX\111 
 
 pointed out, but only to a very limited extent. It would also seem 
 to be capable of demonstration that the cause in question cannot be a 
 drain of bullion to meet the tribute paid by India to England, for in 
 this particular instance of the Punjab^ bullion was fast flowing into 
 the country when prices were falling, and so of India at large. The 
 tribute has been paid by means of exports of produce, without requir- 
 ing the transmission of bullion to England, excepting on rare occa- 
 sions ; and the imports of bullion into India have, as already noticed, 
 been, on the whole, very large ; so that the metallic currency of all 
 British India must have been rapidly increasing for many years past. 
 " This remarkable fall of prices, which has almost invariably fol- 
 lowed the transfer of territory from Native to British rule, while 
 neither capable of being accounted for by the state of the crops and 
 extent of cultivation, nor by the annual tribute remitted to England, 
 may yet be clearly traced to the extraordinary demand for money 
 occasioned by our collecting the land assessment in cash, and con- 
 veying it away from the agricultural distinct to our large military 
 stations for the payment of the troops located there. A much larger 
 currency than before would clearly have been required under this 
 change of system, in order to sustain prices at the old standard. It 
 was, however, impossible to enlarge the currency so as fully to meet 
 the change, and no attempt to do so was made, or apparently ever 
 thought of. The consequence was, that in order to obtain money for 
 the payment of his assessment, the ryot brought more produce to 
 market than before ; but as there was no corresponding enhancement 
 of the demand for it, prices necessarily fell." 
 
 (B.) — Description oftJie Madras ryot hy Mr. Bourdillon in 1853. 
 
 The ryots may be divided into two principal classes — those who 
 are comparatively well-off, the few, and those who are poor, the many. 
 The former in general are either those whose villages or lands were 
 from any cause favorably assessed at the first ; or those who have 
 inam or rent-free land in addition to their rent-paying land ; or those 
 who have more extensive holdings than common, all of whom have 
 good land and have more or less inam. Individuals of the favored 
 classes, as they are called, who hold their land on easier terms than 
 usual, because belonging to certain castes, are also necessarily better 
 off than others ; and, lastly, personal character has its own influence 
 here as elsewhere ; the careful and frugal will get rich, and so will 
 the crafty and subtle, skilful to gain the favour of the tahsildar or to 
 supplant a rival, 
 
 2, Even among this more wealthy class of agriculturists, the num- 
 ber of those who possess any considerable amount of property is very 
 small. It is difficult to form or to convey an exact^ idea of their real 
 means, but I will attempt it, I should say that if a man of this class 
 is able to spend 15 or 20 rupees a month, or rather if he can command 
 a value equal to that, for he will rai'ely see so much money, such a 
 man, I say, may be accounted to be very well off ; and that a net 
 income from all sources to the value of from 30 to 50 rupees a month
 
 XXXIX 
 
 is Very rare among tlie agricultural classes. Such an income, indeed, 
 is far more in this country than the money amount indicates to 
 English ears. The actual purchasing power of money in this country 
 is sometimes estimated at four times what it is in England, sometimes 
 at six times. Assuming the intermediate proportion of five to one, an 
 income of 20 rupees a month will be equal to one of c€120 a year in 
 England ; and 30 rupees and 50 rupees a month in this country will 
 be the respective equivalents of £180 and £300 a year in England. 
 In point of fact, indeed, the diflFerence is greater, both because from 
 the nature of the climate, the range of absolute necessaries is here 
 much abridged, and also because the general scale of incomes and 
 style of living throughout all grades of society are so much lower 
 here than they are in our own country. But though the incomes 
 above specified undoubtedly raise their possessors far above want, 
 still they appear small in extreme when regarded as the highest 
 incomes fi'om the possession of land in a very extensive country, and 
 the largest of them certainly confined to an extremely limited number 
 of instances. 
 
 3. The dwellings of this class certainly do not indicate much 
 wealth ; tiled houses are rarely seen, and masonry walls are still much 
 more I'are. The almost universal habitation has mnd walls and a 
 thatched roof ; the latter of a very flimsy order, and both often much 
 dilapidated : and both walls and roof are the same within as without ; 
 the rooms have no ceiling, and their walls no sort of ornament or 
 decoration ; rarely even whitewash, and the floor is of simple earth 
 beaten hard. The value of the residence of a ryot of the more wealthy 
 class, of whom I am now speaking, probably rarely exceeds 200 
 rupees or £20. It may be urged that the habits of the people do not 
 incline them to spend money on improving their dwellings, but that 
 they rather invest savings in jewels or rich cloths for great occa- 
 sions, or in cattle, or expend them on marriages and other family 
 occasions. There is some truth in this; but though every family 
 above actual poverty possesses some jewels, yet probably very few 
 agricultural families possess to so large a value as 1,000 rupees or 
 £100 for both jewels and clothes ; and even supposing an equal value 
 in agricultural stock (and so much would very rarely be met with), 
 the whole aggregate value, £220, equal to £1,100 in England, is 
 extremely small to represent the whole property (exclusive of land) 
 of one of the most wealthy members of the land-holding class ; and 
 it is the most wealthy only who possess as much as this. 
 
 4. And if we look within their houses, we still find few evidences 
 of wealth, or even of what we should consider comfort, I have already 
 described the interior of the house itself; and as to its contents, 
 there is nothing of what is commonly called furniture. There are no 
 chairs, or tables, or couches, or beds ; sometimes there is seen a 
 single rude cot which would be dear at 2 rupees. The inmates for 
 the most part sleep on the earthen floor, with nothing else below them 
 but a mat or a small cotton carpet. They sit on the floor, and from 
 it take their food, which is served in a few brass dishes, or perhaps 
 by preference and not from poverty on a simple plantain leaf. Their 
 usual clothes are simply of cotton, and cost little ; and when going
 
 3d 
 
 a distance to the Tahsildar's or Collector's cutcherry^ for example, 
 they generally travel on foot or, in exceptional cases, usually of age or 
 infirmity, on a pony not worth above 7 or 8 rupees. 
 
 5. It may, perhaps, be replied to all this that such are the simple 
 habits of the country, and that the people are satisfied, and require 
 no more. This is no doubt true as a fact, to this extent at least 
 that, in the absence of sufficient promise of success, these people 
 abstain from active effort to better their circumstances. But if it 
 be meant that they choose to be poor when they might be rich ; that 
 they are satisfied with the necessaries of life when they might 
 command some of the comforts and luxuries ; that they are content 
 to have only their physical wants supplied when they might rise to 
 the perception and enjoyment of intellectual pleasures ; then I deny 
 the truth of the assertion. And I must add that, if true in any 
 degree, it would only prove the ignorance and debasement of the 
 people to whom it relates. 
 
 6. The foregoing description refers to the better class of ryots, 
 men who are above the world and well ofF; but the condition of the 
 great majority is much worse. From the oflScial list of puttahs for 
 the Revenue year 1848-49, it is seen that out of 1,071,588, the total 
 number of puttahs (excluding joint puttahs) in the fourteen principal 
 ryotwar districts, ^ no fewer than 589,932, being considerably more 
 than half, are under 10 rupees each, and in fact average only a small 
 fraction above 4 rupees each ; that 201,065 are for amounts ranging 
 from 10 rupees to 20, and in fact averaging less than 14j rupees 
 each ; and that 97,891 are for amounts between 20 rupees and 30, 
 and in fact averaging only 24| rupees ; and thus that 888,888 puttahs, 
 out of a total of 1,071,588, or considerably* more than three -fourths, 
 are for amounts under 30 rupees, and in fact averaging less than 8f 
 rupees. 
 
 7. Now it may certainly be said of almost the whole of the ryots 
 paying even the highest of these sums, and even of many holding to 
 a much larger amount, that they are always in poverty and generally 
 in debt. Perhaps one of this class obtains a small sum out of the 
 Government advances for cultivation, but even if he does, the trouble 
 that he has to take and the time he loses in getting it, as well as 
 the deduction to which it is liable, render this a questionable gain. 
 For the rest of his wants he is dependent on the bazaarman. To him 
 his crops are generally hypothecated before they are reaped, and it 
 is he who redeems them from the possession of the village watcher by 
 pledging himself for the payment of the kist. These transactions 
 pass without any written engagements or memoranda between the 
 parties, and the only evidence is the Chetty's own accounts. In 
 general, there is an adjustment of the accounts once a year, but 
 sometimes not for several years. In all these accounts interest i> 
 charged on the advances made to the ryot on the balance against him. 
 
 Chingleput. 
 Salem. 
 Madura. 
 Nellore. 
 North Arcot. 
 
 South Areot. 
 
 Tanjore. 
 
 Trichinopoly. 
 
 Tinnevelly. 
 
 BeUary. 
 
 Cuddapah. 
 Coimbatore. 
 Canara. 
 Kurnool.
 
 3di 
 
 The rate of interest varies with the circumstances of the case and the 
 necessities of the borrower ; it is probably seldom or never less than 
 12 per cent, per annum^ and not often above 24 per cent. ; of course 
 the poorest and most necessitous ryots have to pay the highest. 
 
 8. A ryot of this class of course lives from hand to mouth; he 
 rarely sees money except that obtained from the Chetty to pay his 
 kist; the exchanges in the out- villages are very few and they are 
 usually conducted by barter. His ploughing cattle are wretched 
 animals not worth more than from 3| to 6 rupees each (7 to 12 
 shillings) and those perhaps not his own, because not paid for. His 
 rude and feeble plough costs, when new, no more than 2 or 3 shil- 
 lings ; and all the rest of his few agricultural implements are equally 
 primitive and ineflBcient. His dwelling is a hut of mud walls and 
 thatched roofs, far ruder, smaller, and more dilapidated than those 
 of the better classes of ryots above spoken of, and still more destitute, 
 if possible, of anything that can be called furniture. His food and 
 that of his family is partly their porridge made of the meal of grain 
 boiled in water, and partly boiled rice with a little condiment ; and 
 generally the only vessels for cooking and eating from are of the . 
 coarsest earthenware, much inferior in grain to a good tile or brick 
 in England, and unglazed ; brass vessels, though not wholly unknown 
 among this class, are rare. 
 
 9. The scale of the ryots descends to those who possess a small 
 patch of land, cultivated sometimes by the aid of borrowed cattle, 
 but whose chief subsistence is derived fi*om cooly labour, either 
 cutting firewood and carrying it for sale to a neighbouring town, 
 or in field labour. The purely laboring classes are below these again, 
 worse off indeed, but with no very broad distinction in condition. 
 The earnings of a man employed in agricultural labour cannot be 
 quoted at more than 20 rupees a year, including everything ; and 
 this is not paid in money, but in commodities. As respects food, 
 houses, and clothing, they are in a worse condition than the class 
 of poor ryots above spoken of. But I will endeavour to describe their 
 circumstances a little more particularly. 
 
 10. The regular agricultural laborers are usually engaged at the 
 commencement of the season for the whole year. It is customary 
 to advance them a small sum, about 5 or 10 rupees; as a sort of 
 retainer, which, however, is to be repaid when the connection ceases. 
 Frequently they remain without change for years; when a man 
 desires to engage with another master, as he will rarely have been 
 able to accumulate money to pay off the advance received, tjhe sum 
 advanced by the new master goes to pay off the old one. These 
 yearly laborers receive a certain allowance of grain every month, 
 which is usually fixed by the custom of the locality ; and at particular 
 seasons, some regular, others occasional, the master makes the servant 
 a small present, also fixed by the local custom. When the wife or 
 children of the laborer work in the fields at weeding, &c., they 
 receive daily hire in grain ; and laborers not engaged for the whole 
 year, but only at particular times, are paid in the same manner. The 
 rates of hire are very low. The daily rate varies in different parts 
 of the country ^from 8 pies (one penny) to 1 anna (3 half-pence) ; it
 
 xlii 
 
 is rarely or never above the latter sum for purely agricultural labour, 
 and this is paid not in money but in grain. The occasional presents 
 to the yearly laborers are partly in money and partly in clothes ; 
 the entire earnings of a lalsorer engaged for a year do not exceed 
 from 16 to 20 rupees for that whole term. 
 
 11. It appears from the foregoing detail that the condition of the 
 agricultural laborer in this country is very poor. Taking his earn- 
 ings at the highest rate, viz., 20 rupees a year, this would be equiva- 
 lent in real value, using the same standard of comparison as above, 
 to £10 a year in England. The English field laborer earns on the 
 average not less than £28 a year, including his extra grains in harvest 
 time ; and thus it appears that the real wages of a field laborer in 
 regular employ, his command of the necessaries and conveniences of 
 life, are in this country little more than a third of what they are in 
 England. It is no doubt true that some things are necessaries there 
 which are not so in so high a degree here ; the laborer in this coun- 
 try does not need to spend so much on firing, clothing or shelter 
 from the weather as in England ; in other words, an equal amount of 
 physical comfort in those respects may be purchased here at a smaller 
 outlay. But making full allowance for this difference, the labourer 
 here will still be found to be much the worse off. In fact, almost the 
 whole of his earnings must necessarily be consumed in a spare 
 allowance of coarse and unvaried food and a bare sufficiency of cloth- 
 ing. The wretched hut he lives in can hardly be valued at all. As 
 to anything in the way of education or mental culture, he is utterly 
 destitute of it.
 
 xliii 
 
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 Tax on sellers of vegetables 
 
 Tax for collecting honey and wax 
 
 Tax on the privilege of digging for pipe clay . . 
 
 Tax on digging for sandal stone 
 
 Tax on the privilege of cutting wood for building houses 
 
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 Frontier customs 
 
 Tax on betel-sellers in Walajapet . . 
 
 Tax collected from the villages of Dasoor in the Wandiwash 
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 Ivi 
 
 (B.) — Extracts from Dr. Buchanan's ^' Journey from Madras through 
 Mysore^ Oanara and Malabar in 1800.'^ 
 
 Bhavdni, Coimbatore district. — The hinds, or servants hired for the 
 year by the farmers, are here called Padiyak, and are on the same 
 footing with the Batigas of Karnata. They sometimes bind themselves 
 for a number of years, in which case the master advances money for 
 their marriage expenses, and deducts so much from their monthly 
 pay, until he is repaid. Unless tied down by some stipulation of this 
 nature, they may change their service whenever they please. A servant 
 gets from his master a house, and from fifteen to twenty Qopaldy 
 fanams or from 5s. to Qs. Sd. a year, with a monthly allowance of 
 twenty Vidlas or Ito^^o bushel of grain. Their wives, when they are 
 able to work, have daily wages. Day laborers at harvest time, whether 
 men or women, get daily one Bulla and a half (rather more than | 
 bushel) of the grain called Cumbu. At weeding the crops, the daily 
 wages are one Bulla of Cumbu, or about jf of a bushel. A man work- 
 ing with a hatchet or pickaxe gets one Qopaldy fanam (about 4f/.) a 
 day ; carrying earth in baskets, or the like, he gets f of a Gopdldy 
 fanam, or 3(f. ; and porters, for carrying a load eight Urnalivullies, or 
 Malabar hours' journey, get two Gopdldy fanams or nearly 8(f. 
 
 On the houses of the Natives in Coimbatore district. — I went ten 
 Malabar hours^ journey to Navaputty ; that is, the nine villages, having 
 formerly been the principal of nine adjacent hamlets. It is a sorry 
 place, containing about 20 houses. The huts of the country, called 
 Chera, are like beehives, and consist of a circular mud wall about 
 three feet high, which is covered with a long conical roof of thatch. 
 Contrary to what might have been expected in a hot climate, but 
 agreeably to the custom of almost all Hindus, one small door is the 
 only outlet for smoke, and the only inlet for air and light. Each 
 family has a hut for sleeping, another for cooking, and a third for a 
 store-house. Wealthy men add more huts to their premises, but seldom 
 attempt at any innovation in the architecture of the country. 
 
 On the condition of the people {Northern division of Coimbatore).' — 
 The cultivators and peasantry continue exactly in the same dress, and 
 same houses, that they used in Tippoo's government, and have a 
 prejudice against changes. Major Macleod thinks that their women 
 are beginning to wear more gold and silver oraameuts than they for- 
 merly did. The merchants and manufacturers are evidently improving 
 in their manner of living, are forsaking their pyramidal or conical 
 huts, and are erecting tiled houses. To enable them to do this. Go- 
 vernment, without charging interest, advances money which is repaid 
 by instalments. 
 
 On the poverty of the peasantry [Dhdrdpurani, Coimbatore district). — 
 Mr. Hurdis thinks that the present rents are greatly too high ; and 
 no doubt, the peasantry here, as well as in almost every part of 
 India, are miserably poor. I am inclined to think, however, that 
 other causes contribute more to this than the greatness of the 
 rents. Mr. Hurdis says that all the land which is not cultivated is by 
 no means unlet {Tirsi) ; but owing to the want of rain and of stock, 
 the farmers are not able to cultivate the whole of what they rent. 
 This, in my opinion, shows that the fields are by no means over-
 
 Ivii 
 
 assessed ; and that the farmers, if they would not grasp at more 
 than they have stock to manage, might be in a much more comfortable 
 situation. One great cause indeed of the poverty of the farmers, and 
 consequent poverty of crops in many parts of India, is the cusfcm of 
 forcing land upon people who have no means of cultivating it. Thus 
 all the lands are apparently occupied ; but it is in a manner that is 
 worse than if one-half of them were entirely waste. I believe every 
 intelligent farmer in England will say that one acre fully improved 
 will give more profit than two that are half cultivated. 
 
 On servants employed in agriculture [Dhdrdpicram). — The servants 
 employed here in agriculture are hired in the beginning of the year 
 for twelve months. They may change their service when their term 
 expires if they be not in their master's debt ; but as he generally 
 advances money for their marriages and other ceremonies, they are 
 seldom at liberty to go away. They get twenty hullas of rough rice 
 [paddy) a month with four fanams and one siliga of rough rice 
 yearly, and their master pays their house-rents. The whole is about 
 31 bushels of rough rice, of which one-half is husk, with two shillings 
 in money, besides the house-rent which will not exceed one or two 
 shillings a year. These servants generally have one wife, who at 
 seed time and harvest works for the master for daily wages. A 
 woman's daily wages are four puddies of grain worth about nine- 
 tenths of a penny. A man gets six puddies of grain. A servant 
 with these wages can once or twice a month procure a little animal 
 food. Milk is too expensive. His common diet consists of some 
 boiled grain, with a little salt and capsicum, and perhaps some pickles. 
 His drink is the water in which the grain was boiled. He has very 
 little clothing, and that little is extremely dirty ; his house is a hovel, 
 and he is commonly overrun with vermin and cutaneous disorders. 
 The women, although not clean, are fully clothed. 
 
 On servants and price of labour (PoUdchi, Coimhatore). — There 
 are here two kinds of servants employed by the farmers to cultivate 
 the lands j they are caWedpadiyals andpungals. The padiyals receive 
 yearly 3 pedis of grain (29 bushels), worth 48 Vir' -Ray a fanams, with 
 10 fanams in money, and a house. The 58 fanams are equal to £1 8s. 
 9^d. The wife and children of the padiyal are paid for whatever work 
 they perform. He is hired by the year ; but if he contracts a debt with 
 his master, he cannot quit the service till that be discharged. 
 
 The pungals go to a rich farmer, and for a share of the crop 
 undertake to cultivate his lands. He advances the cattle, implements, 
 seed, and money or grain that is necessary for the subsistence of the 
 pungals. He also gives each family a house. He takes no share in 
 the labour which is all performed by the pungals, and their wives and 
 children ; but he pays the rent out of his share on the division of the 
 crop, which takes place when that is ripe. If a farmer employs six 
 pungals to cultivate his land, the produce is divided into 15 portions, 
 which are distributed as follow : — 
 
 To the farmer, or punnadi, for rent, seed, &c. ... 6 
 
 To do. do. for profit ... 1 
 
 To do, do. for interest of money advanced 2 
 
 To the pungals or laborers ... ... ... ... 6 
 
 t 15 portions, 
 
 9
 
 Iviii 
 
 Out of their portions the pungals must repay the farmer the money 
 which he has advanced for their subsistence. The farmers prefer 
 employing padiyals_, when they can be procured ; but among the 
 laborers the condition of the pungals is considered as preferable to 
 that of the padiyals. Six-fifteenths of the whole produce is indeed a 
 very large allowance for the manual laboiA' bestowed on any land, and 
 as the farmer can afford to give it, the rents must be moderate. 
 
 Pdlghat, Churmars, or Slaves. — By far the . greater part of the 
 
 labour in the field is performed by slaves or churmars. These are the 
 
 absolute property of their devaru^, or lords, and may be employed on 
 
 any work that their masters please. They are not attached to the soil, 
 
 but may be sold or transferred in any manner that the master thinks 
 
 fit ; only a" husband and wife cannot be sold separately*, but children 
 
 may be separated from their parents, and brothers from their sisters. 
 
 The slaves are of different castes, such as Parriar, Vullam, Canacun, 
 
 Erilay, &c., and the differences in the customs by which the marriages 
 
 of these castes are regulated occasion a considerable variation in the 
 
 right of the master to the children of his slaves according to the 
 
 caste to which they belong. The master is considered as bound to 
 
 give the slave a certain allowance of provisions : a man or woman, 
 
 while capable of labour, receives two edangallies of rice in the husk 
 
 weekly, or two-sevenths of the allowance that I consider as reasonable 
 
 for persons of all ages included. Children and old persons past 
 
 labour get one -half only of this pittance, and no allowance whatever 
 
 is made for infants. This would be totally inadequate to support 
 
 them ; but the slaves on each estate get one- twenty first part of the 
 
 gross produce of the rice in order to encourage them to care and 
 
 industry. A male slave annually gets 7 cubits of cloth, and a woman 
 
 14 cubits. They erect for themselves small temporary huts that are 
 
 little better than large baskets. These are placed in the rice-fields 
 
 while the crop is on the ground, and near the stacks while it is 
 
 thrashing. 
 
 There are three modes of transferring the usufruct of slaves. 
 The first is by jenmum, or sale, where the full value of the slave is 
 given, and the property is entirely transferred to a new master, who 
 is, in some measure, bound by his interest to attend to the welfare of 
 his slave. A young man with his wife will sell for from 250 to 300 
 fanams, or from £6 4s. l^d. to £7 8s. ll-^d. Two or three young 
 children will add 100 fanams, or £2 9s. 7^d. to the value of the 
 family. Four or five children, two of whom are beginning to work, 
 will make the family worth from 500 to 600 fanams or from £12 
 8s. dd. to £14 17s. 11^. The second manner of transferring the 
 labour of slaves is by kanom or mortgage. The proprietor receives a 
 loan of money, generally two-thirds of the value of the slaves ; he 
 also receives annually a small quantity of rice, to show that his 
 property in the slaves still exists ; and he may reassume this property 
 whenever he pleases to repay the money borrowed, for which in the 
 meanwhile he pays no interest. In case of any of the slaves dying, he 
 is held bound to supply another of equal value. The lender maintains 
 the slaves and has their labour for the interest of his money and for 
 their support. The third manner of employing slaves is by letting 
 them for patom, or rent. In this case, for a certain anr.ual sum, the
 
 Hx 
 
 master gives them to another man ; and the borrower commands their 
 labour and provides them with their maintenance. The annual hire is 
 8 fanams (3s. 11-^d.) for a man and half as much for a woman. 
 These two tenures are utterly abominable; for the person who exacts 
 the labour and furnishes the subsistence of the slave is directly- 
 interested to increase the former and diminish the latter as much as 
 possible. In fact^ the slaves are very severely treated, and their 
 diminutive stature and squalid appearance show evidently a want of 
 adequate nourishment. There can be no comparison between their 
 condition and that of the slaves in the West India islands, except that 
 in Malabar there are a sufficient number of females who are allowed 
 to marry any person of the same caste with themselves, and whose 
 labour is always exacted by their husband^s master, the master of the 
 girl having no authority over her so long as she lives with another 
 man's slave. 
 
 Manapuram, Malabar. — At Manapui'am a slave, when 30 years old, 
 costs about lOir fanams, or £2 14s. '7d.; with a wife he costs double. 
 Children sell at from 15 to 40 fanams, or from 8s. 2jd. to 21s. lOcl. 
 A working slave gets daily three-tenths of a poray of rough rice, or 
 about 36^ bushels a year. He also gets annually 1 fanam for oil and 
 1^ fanams for cloth, which is just sufficient to wrap round his waist. 
 If he be active, he gets cloth worth 2 fanams, and at harvest time 
 from 5 to 6 porays of rough rice. Old people and children get from 
 one to two-thirds of the above allowance, according to the work 
 which they can perform. 
 
 Tdmracheri, northern division of Malabar. — The daily allowance 
 here established for slaves is of rough rice — 
 
 Cubical inches. Bushels. 
 
 To able-bodied men, 6 nallis 
 
 heaped ... ... ... = 148| yearly 25^ 
 
 To able-bodied women, 6 
 
 nallis streaked ... ... = 103^ ,, 17-|- 
 
 To old persons and children — 
 
 3 nanis heaped = 7H >, 12t^ 
 
 The average, allowing one child and one old person to every two 
 men and two women in the prime of age, will be 18^*^ bushels, of 
 which one-half is husk. When the scarcity that usually happens- 
 every year prevails, they get part of their allowance in yams 
 {Dioscoreas), jacks (Artocarpus) or plantains (Miisa). When harvest 
 is over, they receive each, according to their activity, a present of 3 
 or 4 porays of rough rice, or from 1 to 1-^-^ bushels, which will make 
 the annual average about 9^ bushels of rice. Their masters give 
 them also some salt, oil and pepper, and they are allowed to keep 
 fowls. Each person has annually three pieces of cloth. The slaves 
 say, what indeed cannot be doubted, that they are much better used 
 by their own masters than when they ar» let out on mortgage 
 (kanom) or hire (patom). 
 
 Tellicherry , Malabar. — The farmers (cudians), whether cultivating 
 rice ground or plantations, according to Mr. Rodriguez, live very 
 poorly, although they get almost four-fifths of the grain^ and at least
 
 one-third of the produce of the taxable tfees. They mostly laboui* 
 with their own hands, there being few slaves. The hired servants, 
 who are chiefly Tiars, work only from half-past six in the morning 
 until noon, and get as daily wages 2^ edangallies of rough rice. All 
 the afternoon they labour for themselves. The edangally containing 
 108 cubical inches, a man by half-a-day's work, allowing one-seventh 
 of his time for holidays, can gain 39^ bushels of grain. Although 
 the cudians may therefore live in a very inferior condition to an 
 English farmer, it is impossible that they should live scantily ; 
 while a day laborer by working only half of the day can procure so 
 much grain. 
 
 Gherikal, Malabar. — In Cherikal and Cotay-hutty there are slaves, 
 chiefly of the Poliar and Pariar castes j but the greater part of the 
 cultivation is carried on by panicar or hired men, who are Nairs, Mop- 
 lahs and Tiars. These panicars are at liberty to change their service 
 whenever they please, unless they be indebted to their master ; and 
 about one-half of them are in that state. They work from morning to 
 noon, when they are allowed an hour for breakfast. They then work 
 until evening, and all night they watch the crops. The master gives 
 the servant a hut, a piece of cloth twice a year, from 6 to 12 silver 
 fanams (27^ to 55 pence) annually for oil and salt, and a daily allow- 
 ance of rice, which is larger than that given to the slaves. When 
 the servant is in debt, stoppages from this allowance are made. The 
 panicars are frequently flogged ; and as their masters are not bound 
 to provide for them in old age, or during famine, they seem to be in a 
 worse condition than the slaves. Their wives and children, if they do 
 any work for their master, get wages. 
 
 Mangalore, South Canara. — The cultivation is chiefly carried on by 
 culialu or hired servants; but there are also some muladalu, bought 
 men or slaves. A hired man gets daily 2 hanies of clean rice or 
 annually 21 1 bushels, together with 1^ rupee's worth of cloth, a 
 pagoda in cash, and a house. A hired woman gets 1^ rupees for 
 cloth, and three-fourths of the man's allowance of grain. In the plant- 
 ing season the woman hii-ed by the day gets 2 hanies of rice, or 128^ 
 cubical inches. These wages are very high, and may enable the hired 
 servants to keep a family in the greatest abundance. It is evident 
 from this that the stock required to cultivate eight morays of land was 
 excessively exaggerated by the proprietors. The wages in grain alone 
 would amount to 156| morays of rice for 8 morays sowing, so that to 
 pay even then would require at least 40 seeds. We may safely allow 
 6 morays for each plough fully wrought ; but the number of ploughs 
 in the whole district amounts to rather less than 1 to 3 morays of rice 
 ground in actual cultivation according to the revenue accounts, owing, 
 probably, to a want of cattle and other stock. At the end of the year, 
 the hired servant may change his service, if he be free from debt ; but 
 that is seldom the case. When he gets deeply involved, his master 
 may sell his sister's children to discharge the amount, and his ser- 
 vices may be transferred to any other man who chooses to take him 
 and pay his debts to his master. In fact, he differs little from a 
 slave, only his allowance is larger, but then the master is not obliged 
 to provide for him in sickness or in old age.
 
 Ixi 
 
 A male slave is allowed daily 1 i liany of rice, or three-fourths of 
 the allowance of a hired servant ; a woman receives 1 hany. The man 
 gets I ^ rupee's worth of cloth and 2 rupees in cash ; the woman is 
 allowed only the cloth. They receive also a trifling allowance of oil, 
 salt, and other seasonings. A small allowance is given to children 
 and old people. When a slave wishes to marry, he receives 5 pago- 
 das (2 guineas) to defray the expense. The wife works with the 
 husband's master. On the husband's death, if the wife was a slave, 
 all the children belong to her mother's master; but, if she was for- 
 merly free, she and all her children belong to her husband's master. 
 A good slave sells for 1 pagodas, or about 4 guineas. If he-has a 
 wife who was formerly free and two or three children, the value is 
 doubled. The slave may be hired out, and the renter both exacts his 
 labor and finds him subsistence. Slaves are also mortgaged ; but 
 the mortgagor is not obliged to supply the place of a slave that dies, 
 and in case of accidents the debt becomes extinguished, which is an 
 excellent regulation. Free men of low caste, if they are in debt or 
 trouble, sometimes sell their sisters' children, who are their heirs. 
 They have no authority over their own children who belong to their 
 maternal uncles. 
 
 Honavar, in Ganara. — In the farms of the Brahmans most of the 
 labor is performed by slaves. These people get daily 1^ hany of rice ; 
 a woman receives 1 hany. Each gets yearly 2^ rupees' worth of cloth, 
 and they are allowed time to build a hut for themselves in the cocoa- 
 nut garden. They have no other allowance, and out of this pittance 
 must support their infants and aged people. The woman's share is 
 nearly 15 bushels a year, worth rather less than 14^ rupees ; to this if 
 we add her allowance for cloths, she gets 16f. rupees a year, equal to 
 £1 16s. S^d. The man's allowance is 22^ bushels, or 23f rupees, or 
 £2 3s. O^d. A male free servant, hired by the day, gets 2 hanies of 
 rice ; both work from seven in the morning until five in the evening ; 
 but at noon they are allowed half-an-hour to eat some victuals that 
 are dressed in the family as part of their allowance, and every caste 
 can eat the food which a Brahman has prepared. 
 
 Sersi, North Canara. — In this country a few slaves are kept; but 
 most of the labor, even in the grounds of the Brahmans, is performed 
 by the proprietors, or hired servants. The Haiga Brahmans toil on 
 their own ground at every kind of labor, but they never work for hire. 
 The hired servants seldom receive any money in advance, and conse- 
 quently at the end of the year are free to go away. No warning is 
 necessary, either on the part of the master or of the servants. These 
 eat three times a day in their master's house, and get annually one 
 blanket, one handkerchief, and in money 6 pagodas, or 24 rupees, or 
 £2 8s. 4<\d. Their wives are hired by the day and get 1| seers of 
 rough rice and 3 dudus, of which 49^ are equal to 1 rupee. In so 
 poor a country these wages are very high. A male slave gets daily 2 
 pucka seers of rough rice, with annually one blanket, one handker- 
 chief, a piece of cotton cloth, and some oil, tamarinds, and capsicum. 
 He gets no money, except at marriages ; but these cost 1 6 pagodas, 
 or £6 8s. W^d.y for, the woman must be purchased. She and all her 
 children of course become the property of her husband's master. The 
 woman-slave gets daily If seers of rough rice, a blanket and annually
 
 Ixii 
 
 a piece of cotton cloth, and a jacket. Children and old people get 
 some ready-dressed victuals at the house of the master^ andare also 
 allowed some clothing. The men work from sunrise till sunset, and 
 at noon are allowed one Hindu hour, or about 24 minutes, for dinner. 
 The women are allowed till about 8 o^clock in fche morning to prepare 
 the dinner, which they then carry to the fields and continue to work 
 there with the men until sunset. 
 
 Soonda, in Canara. — A farmer who has five ploughs is esteemed 
 a rich man. With these he must keep 6 men and 6 women and 10 
 laboring cattle, and at seed-time and harvest he rnust hire additional 
 laborers. 'Farmers who are not Brahmans, unless their farms be 
 large, work the whole with their own families ; but rich men must hire 
 servants, or keep slaves, and to hold their plough Brahmans must 
 always have people of the low castes. This is a kind of work that 
 even a Haiga Brahman will not perform. 
 
 A man-slave gets daily 2 seers of rough rice, or yearly about 26 
 bushels, worth £1 2s. O^d., a handkerchief, a blanket and a piece of 
 cloth worth 2 rupees (4.5. 0|d.), a pagoda in money (8s. O^d.), 6 can- 
 dacas of rough rice at harvest (14s. 6d.) ; total £2 8.s. 7^d. The 
 women get one piece of cloth annually, and a meal of ready-dressed 
 victuals on the days that they work, which may amount annually to 
 8s. Id. Hired men get four seers of rough rice a day, worth less than 
 three half -pence. 
 
 Nagara, — Most of the cultivation is carried on by the families of 
 the cultivators ; there are very few hired servants, but a good many 
 slaves, by whom, on the farms of the Brahmans, all the ploughing is 
 performed. A slave gets annually 1^ rupees for a blanket, 3 rupees' 
 worth of cotton cloth, quarter rupee for a handkerchief, 6 candacas of 
 rough rice worth 4 rupees to procure salt, tamarinds, &c., and daily 
 1| colaga of rough rice, or annually 27| candacas (or almost 49 
 bushels) worth £1 16s. llffZ. ; add the annual allowances 17s. 7j(^., 
 the total expenses of maintaining a male slave one year is £2 14s. 
 7kd. A woman-slave gets as follows : 365 colagas of rough rice, one 
 daily, and 3 candacas at harvest, in all 21 j candacas or 36 j bushels, 
 worth 14 Jg- rupees ; 2 rupees' worth of cloth, and quarter rupee for 
 a jacket, in all nearly 16| rupees or £1 13s. 2(7. The marriage of a 
 slave costs 10 pagodas, or about 4 guineas, 'J'he wife belongs to the 
 husband's master. A master cannot hinder his slave girl from marry- 
 ing the slave of another man, nor does he get any price for her. 
 The widow and children, after a slave's death, continue with his 
 master. If a slave has no children by his first wife, he is allowed to 
 take another. 
 
 Harihar. — The greater number of the farmers here have only one 
 plough each ; but all such as have not more than three ploughs are 
 reckoned poor men, and are in general obliged to borrow money to pay 
 the rent, and to carry on the expenses of cultivation. The crop is a 
 security to the lender, who is repaid in produce at a low valuation. 
 Farmers who have 4, 5, or 6 ploughs are able to manage without 
 borrowing, and live in ease. Those who have more stock are reckoned 
 rich men. Bach plough requires one man and two oxen, and can 
 cultivate two mars of land, or about 17 acres : In seed-time and
 
 Ixiii 
 
 harvest, some additional laborers must be hired. All the farmers, and 
 their children, even those who are richest, Brahmans excepted, work 
 with their own hands, and only hire so many additional people as are 
 necessary to employ their stock of cattle. A servant's wages are 
 from 6 to 9 jimshiry pagodas a year, together with a blanket and a 
 pair of shoes. The jimshiry pagoda is four dudus worse than that of 
 Ikeri, which is rather less than 1^ per cent. The wages are therefore 
 from £2 7s. lOd. to £3. lis. 9d. Out of this they find everything 
 but the shoes and blanket. Men laborers get daily half a fanam or 
 3:^<^., and women receive one-half of this hire, which is seldom paid 
 in money, but is given in jola at the market price. The man's wages 
 purchase daily about a quarter of bushel. The people here work from 
 eight in the morning until sunset, and in the middle of the day are 
 allowed 24 minutes to rest and eat. The cattle woi'k from eight in 
 the morning until noon. They are then fed for an hour, and work 
 until about 5 o'clock. 
 
 Heriuru (Mysore.) — At Heriuru there are no-slaves. Most of the 
 labor is performed by the families of the tenants ; but a few hire men- 
 servants by the year, and in seed-time and harvest employ women by 
 the week. A man gets from 50 to 70 fanams a year, or from £1 11.9. 
 2^d. to £2 Ss. 8ld. This is paid entirely in money, without addition, 
 except that for himself and family he generally obtains room in his 
 master's house. Women get 1 fanam, or 7^d. a week. Advances to 
 servants are not common, and of course they are entirely free. 
 
 The hours of labor in this country are from eight in the morning 
 until noon, and from 2 o'clock till sunset ; in all, about eight hours. 
 The laborers get up about sunrise; bat an hour is spent in ablutions, 
 prayer, marking their faces with consecrated ashes or clay, and in 
 eating their breakfast. They eat three times a day, their principal 
 meal being at noon. 
 
 Bailurii (Mysore.) — In the Malayar there are no slaves. Most of 
 the labor is carried on by the farmers and their own families. Ser- 
 vants are hired by the year, month, or day. A man's wages, when 
 hired by the year, are annually 3 pagodas, a pair of sandals, a blanket, 
 and daily a meal of ready-dressed rice, worth altogether about 5 
 pagodas, or about £2. He eats another time daily, but this is at his 
 own expense. A servant hired by the month gets half a pagoda, or 
 about 4 shillings, without any addition. The daily hire is one-third 
 of a Canterroy fanam or 2^d. Hired servants work from eight in 
 the morning until six in the afternoon ; but half an hour's intermis- 
 sion is granted to give them time to* eat some ready-prepared 
 victuals. 
 
 CancanhulJy (Mysore). — Most of the cultivation is performed by 
 the hands of the farmers and of their own families. A few hired ser- 
 vants, but no slaves, are employed. A man-servant gets annually of 
 ragi 4 candacas of 200 seers of 72 inches, or nearly 26| bushels, worth 
 at an average 28 fanams, with 12 fanams in money. In all, he 
 receives 40 fanams, or £1 4s. 11^^. The hours of work are from 6^ 
 • in the morning until noon, and from two in the afternoon until sun- 
 set. The number of holidays allowed is very small ; but the servant 
 occasionally gf^ts four or five days to repair his house. At seed-time
 
 Ixiv 
 
 and harvest, a day-laborer gets from one-third to one-fourth of a 
 fanam^ or from 2^^,, to rather more than l^d. a day. Women get 
 daily from one-fourth to one-fifth of a fanam or about l^d. 
 
 KiUamangalam , Salem District. — Most of the labor is performed 
 by the farmers and their own families. A few rich men hire yearly 
 servants ; and at seed-time and harvest additional daily laborers must 
 be procured. There are no slaves. A ploughman gets annually 3^ 
 candacas of ragi (20 bushels), worth 28 fanams, with a hut and 16 
 fanams in money. His wages, beside a hut, are therefore £1 7s. h\d. 
 The additional expense attending a plough is 3^ fanams for imple- 
 ments, and 2 seeds for the hire of day-laborers, or one candaca of 
 grain, worth 8 fanams, for what the plough will cultivate ; in all 55^ 
 fanams. Add 30 fanams for the rent of the dry field, and we have 
 86^ fanams of expense, besides the interest of the value of the two 
 oxen, which, however, is a mere trifle. In an ordinary year, the pro- 
 duce, after deducting the seed and the Government's share of rice 
 with the stoppages for village officers, according to the farmers, will 
 
 be — 
 
 Fanams. 
 
 Ragi 45 colagas, worth ... ... 22 
 
 Avaray 19 colagas ... ... ... 10^ 
 
 Rice, Hainu crop, 85 colagas ... ... 35 
 
 • Rice, Caru crop, 57^ colagas ... ... 23 
 
 This amounts to just about the expense ; but I have mentioned that 
 the produce of the dry grains is in this account underrated by at 
 least one-half, and I have not brought into the account the half pro- 
 duce of the 5 colagas which the farmers are compelled to cultivate, 
 and which costs little or no additional expense. 
 
 The farmers in general consent to advance money to their servants 
 for marriages and other ceremonies. This money is repaid by instal- 
 ments out of the wages that are given in cash ; for the people here are 
 not anxious to keep their servants in bondage by a debt hanging over 
 them. A day-laborer, whether man or woman, gets daily one-eighth 
 colaga of rough rice or j^yW pa^rts of a bushel. Of this, it must be 
 observed, one-half is composed of husk. 
 
 The following is an account of the wages now (1891) prevailing 
 at the places visited by Dr. Buchanan in 1800 : — 
 
 Bhavdni. — The rates of wages of the agricultural laborers have not 
 much altered since the beginning of the century. There are no slaves 
 now. The wages of the agricultural laborers, who are terpaed padiyals 
 and pannials, are 20 hullahs in kind per month and from Rs. 2 to Rs. 3 
 in money. Their wives get wages as other ordinary laborers. 
 
 Day-laborers at harvest, whether men or women, get one to one 
 and-a-half buUah of grain according to season and demand. For 
 weeding, transplanting and planting, the laborers are paid from half 
 to three-fourths of a buUah. A laborer working in the field with- 
 a hatchet or carrying earth or manure is paid one bullah in kind or 
 As. 2 in cash.
 
 Ixv 
 
 A porter taking a load is paid one buUah of grain or As. 2 for a 
 whole day. 
 
 Dhdrdpuram, Coimhatore District. — Agricultural labourers are hired 
 in the beginning of Chithirai (April) for a year. They change their 
 service when their term expires. They seldom borrow from their 
 masters, but when they do, they repay the loan at the end of their term 
 by the sale-proceeds of their cattle. A male labourer gets 20 bullahs of 
 paddy for labour on wet lands in towns, and 16 bullahs of dry grain in 
 husk for labour on dry lands in villages as his monthly wages. A 
 labourer on wet lands gets also annually a mlagai/ of paddy with a pre- 
 sent of one or one and-a-half rupees or cloths of equivalent value for 
 approved service. Where the labourer does not own a house in the 
 village in which he is employed, the master provides for him a thatched 
 hut to live in, to be surrendered to the employer on the termination of 
 the period of service. The labourer's wife works in the master's fields 
 at seed-time and harvest and elsewhere at other times. A woman's 
 daily wages are one hullah of dry grain in husk worth about one anna. 
 For reaping, a man gets 6 puddies and a woman 5 puddles a day. 
 
 The labourer's diet consists of boiled grain and soup prepared of 
 mochai or avarai (beans) with coriander and capsicum ground into a 
 paste mixed with salt. A rag is his clothing and hut his home. The 
 labourers are strong and hardy and are not overrun with vermin and 
 cutaneous disorders as a class. The women, although untidy, are fully 
 clothed. 
 
 Poildchi. — There are now two kinds of servants, called padiyals, 
 employed by the farmer to cultivate the lands, and pungals. The padi- 
 yals are engaged for a year, the year running from Chittirai to Chittirai 
 (April) in some places and Thai to Thai (January) in others. The 
 padiyals invariably receive an advance of money varying from Rs. 10 
 to Rs. 30, which they have to repay on quitting the master's service. 
 The advance is taken by the padiyals out of necessity and partly in 
 order that they might have a hold on their employers against summary 
 dismissal of their services at the pleasure of the masters. The padiyals 
 are paid monthly in kind. Persons between 12 and 18 years of age 
 are paid from 12 to 16 bullahs of grain according to age and nature 
 and efficiency of work. Those over 20 years of age receive 18 bullahs. 
 Besides the wages in grain, each padiyal is provided with a cumbli or 
 As. 8 to Rs. 1-8-0 for the purchase of one. He is also supplied with 2 
 pairs of slippers. The wife and children of the padiyal are paid for 
 whatever work they perform, the wages of a female for transplanting 
 being 8 pies or one bullah of grain. If the padiyals leave their masters' 
 service before the expiry of the term of their service, the masters seize 
 their cattle and sell them and recoup themselves for the money 
 advanced to the laborers, tf, on the other hand^ the masters dispense 
 with the services of the padiyals, they cannot recover the lo^yas before 
 the full year of engagement expires. 
 
 The pungal goes to a rich farmer and for a share of the crop 
 undertakes to cultivate his lands. The farmer advances the cattle, 
 implements, seed and money or grain that is necessary for the subsist- 
 ence of the pungal. He also gives each family a house. He takes no 
 share in the labour, which is all performed by the pungal and his wife
 
 Ixvi 
 
 and children, but he pays the rent out of his share on the division of 
 the crop which takes place when that is rij)e. If a farmer employs a 
 pungal to cultivate his lands, the produce is divided into two equal por- 
 tions, one-half going to the share of the farmer as nilavaram. Of the 
 remaining half, i.e., yearivaram, in proportion to the number of ploughs 
 owned by the farmer and pungal, the shares are divided at the rate of 
 a share for each plough. For example, if the farmer owns three 
 ploughs and the pungal one plough, half the produce above referred 
 to (yearivaram) will be divided into 4 portions, 3 going to the share of 
 the farmer and the remaining one to the latter. Every pungal should 
 contribute a plough or two or else he will not be considered as such, but 
 will be treated as a mere padlyal. The pungal should pay from his 
 share of the produce to the farmer the money which he received for his 
 subsistence. The farmers are better off with pungaJs than with padi- 
 yals ; the greater portion of the responsibility is shoved on the pungals, 
 who have equal, if not better, interest in the cultivation of the land. 
 The farmer has therefore less anxiety and greater profit when he 
 employs a pungal than when he employs a jiadii/aL 
 
 Pd/ghaf, Malabar District. — The greater part of the labour on the 
 field is performed by churmars. Persons of other castes are also en- 
 gaged for the labour when necessity arises on payment of higher wages. 
 The churmars, who were once slaves, are now ordinary coolies. The 
 tenants and landlords have now no absolute control over them, nor do 
 they maintain the churmars when their services are not required. The 
 churmars are at perfect liberty to proceed wherever they choose and 
 obtain subsistence. They receive 2 parahs of paddy and two pieces of 
 cloth a year so long as they remain in the service of their masters. 
 They also obtain some pecuniary and other assistance when a marriage, 
 death or other contingency occurs in their families. The daily wages 
 of a churmar, both male and female, are 2 edangallies of paddy and 
 one edangally for a boy or girl . The daily wages of labourers other 
 than churmars are 4 edangallies for males, 3 for females, and 1| for 
 boys and girls. 
 
 Tdniracheri, Malahar Didrid. — The daily wages paid in grain to 
 agricultural labourers in 1891 were much the same as those paid in 1800. 
 The rates generally given are — 
 
 CUB. IN. 
 
 To able-bodied men, ] \ dangallis of paddy or G 
 
 nallis heaped ... ... ... ... .. 148§ 
 
 To able-bodied women, \\ dangallis of paddy 
 
 or 6 nallis streaked ... ... ... ... 108^ 
 
 To old persons and children, of paddy, 3 nallis 
 heaped... ... ... ... ... ... 74J 
 
 They get a present of 3 parahs of paddy during the harvest and 
 3 or 4 pieces of cloth. In times of scarcity, which generally happens 
 in the months of July and August, their masters give them yams, 
 jacks, plantains, &c. This year when there was a general failure of 
 jacks, yams, &c., the starving populace were driven to the necessity of 
 extracting aliment from fan-palm and datC'palm and subsisting upon 
 the cakes formed out of the juice obtained. The rates above given 
 are higher than the rates given for the labourers who receive advances
 
 Ixvii 
 
 of money and are required to work out the advance by contributing 
 manual labour. 
 
 TeUicherry^ Malabar District.— ^The cudians, i.e., tenants, are now 
 worse off than in 1800. They get at the most only one-half of the 
 produce of paddy fields they lease out, and as for plantations, if the 
 trees have not been paid (kuyikanom) price by the jenmies, the tenants 
 get two-thirds of their produce ; in other cases they scarcely get one- 
 third, the rest being appropriated by their jenmies. All tenants, 
 whether of paddy flats or of parambas, have the same complaint to 
 make, that they gain little or no profit from tilling or holding lands 
 and parambas under the tonures now obtaining in Malabar. 
 
 Tliese tenants are mostly workmen themselves ; and all able-bodied 
 men and women of their household work in and for the interest of the 
 farm. But if at all any extra labour is wanted, they hire other men and 
 women at the usual rates of wages. The tenants do not now possess 
 slaves, though it cannot be denied that in remote parts prsedial slaves 
 are covertly leased out with the farms. The hired servants are chiefly 
 Tiars, Nairs^ Moplahs and Polayars (who were slaves in 1800), Pola- 
 yars are hired as day-laborers. The working hours are now, as in 
 1800, almost the same, viz., 7 a.m. to 1 p.m., but the rates of wages 
 are now only 2 edangallies of paddy against 2| in 1800. All the 
 afternoon the tenants work for themselves. 
 
 The edangally in North Malabar, familiarly known as MoLeod's 
 seer, contains — 
 
 CUB. IN. 
 
 In Cherakal 100'34 
 
 In Kottayam ... ... ... ... 97*75 
 
 In Kurumbranad ... ... ... ... 97*75 
 
 The total earnings, at the present rates, of a day-labourer in Malabar 
 for a whole year may be taken at 626 dangallis of paddy, or Rs. 37^ 
 in money at the present market rates. This gives Rs. 3-2-0 -a month 
 for a labourer working half a day. 
 
 Cherakal, Malabar District. — The following castes were once slaves 
 in this taluk : (1) Polayars, in the plains near the sea coast and (2) 
 Maviloms, (3) Karimbalans and (4) Vettuvars on the hills. There are 
 now no slaves in the sense that their women and children are not now 
 openly sold, mortgaged or leased with the lands to which they are 
 attached. But the master or jenmi takes particular care that they are 
 not taught to read and write. In remote parts they are even now 
 covertly sold, mortgaged and leased with the lands by word of mouth. 
 In such parts the old allowances are still paid to them, viz., a hut, two 
 pieces of cloth annually and the daily allowance of rice or paddy. 
 The annual money allowance for oil and salt is not now given. 
 
 The panicurs or agricultural labourers are generally Nairs, Moplahs 
 and Tiars. Though the master does not now give the servant a hut to 
 live in, yet many have become kuyikanom tenants of the former. 
 They are not bound to render gratuitous service to their masters. For 
 all work done to the masters, they are paid the same wages as are given 
 to non-tenants,
 
 Ixviii 
 
 In cases of indebtedness, the debts are not recovered by deductions 
 from wages, but in due course of law. No annual presents are given 
 to the labourers nor are they flogged on any account. 
 The rates generally given are — 
 
 For tilling (work done till 1 p.m). 2 McLeod seers of paddy. 
 
 Do. (the whole day) 3 seers with breakfast. 
 
 For ploughing (work done till 12' H seers of paddy. 
 
 noon). 
 For weeding (women) whole day. 1| nalis or | seers of rice. 
 For reaping (women) ... 10 sheaves for every 100 
 
 sheaves brought to the 
 threshing ground. 
 For turning up parambas (till 1 As. 2-6 in money or 2 seers 
 
 P.M.). of paddy. 
 
 Cooly work (full day) in urban As. 4 with 6 pies extra for 
 parts. noon -meal if the latter 
 
 is not supplied by the 
 employer. 
 
 (C.) — Abstract of the Proceedings of the Board of Revenue, dated 2bth 
 November 1819^ on the subject of agricultural slavery. 
 
 Salem. — There was no vestige whatever of slavery in the district 
 nor had any such practice obtained from the time the district came 
 into the possession of the Company. 
 
 Madura and Dindigul. — Slavery had existed during the Muham- 
 madan Government and the slaves were sold at the pleasure of their 
 masters. Since the assumption of the country by the Company, some' 
 slaves had continued with their masters ; others had left them and 
 even enlisted as sepoys. The Collector could not discover that any 
 Pullan had sold himself as a slave. Indeed slavery seemed gradually 
 disappearing, 
 
 Ooimbatore. — Slavery existed in the district in but a very few 
 villages and the number of slaves was always inconsiderable. 
 
 Tanjore. — Slavery existed in the district, but it was founded in 
 the first instance upon a voluntary contract. The condition of the 
 slaves differed very little from that of the common labourers, and the 
 treatment of both was nearly the same. The system of slaves attached 
 to the soil and transferable by purchase, as appendage to the land, 
 did not obtain in the district. 
 
 Tinnevelly. — Slavery existed in the district. It was usual for 
 slaves to be sold or mortgaged, either with the land or separately, at 
 the pleasure of the proprietor. The slaves were afforded subsistence 
 on the lowest scale of allowance, being generally no more than 2 
 measures of paddy a day on working days. They were also entitled 
 at the time of harvest to a small deduction from the gross produce, 
 which generally amounted to 2f per cent. It was usual for the 
 masters to assist the slaves with necessary funeral expenses, and to 
 grant them presents on occasions of marriages, births and festivities,
 
 Ixix 
 
 South Arcot. — The system of slavery founded in the first instance 
 on contract existed in the district, the number of slaves amounting to 
 17,000. The owners were required to provide the slaves with food 
 and clothing, and to defray their wedding expenses and to assist them 
 with presents on the occasion of births of children and to defray 
 funeral cliarges. The food given was always sufficient for subsistence, 
 but the clothing was very scanty. The owners were bound to protect 
 the slaves in sickness and old age. 
 
 GhingUput. — The system of slavery, originally founded on contract, 
 existed in the district. The slaves were given a certain prescribed 
 grain allowance and a proportionate subsistence for each of their 
 children or others of the family. They were also housed and clothed 
 and during the principal festivals certain other allowances were made 
 to them both in money and in articles requisite for their ceremonies ; 
 their marriages were also performed at the charge of their masters 
 and when reduced by infirmity they were also supported by their 
 proprietors. The condition of this description of people, composing 
 the chief part of the Pariahs of the district, had, of late, considerably 
 changed, in consequence of the vicinity of the town of Madras where 
 many of them obtained employment and their proprietors found it 
 difficult to reclaim them. 
 
 Trichbiopoly. — Slavery existed in the district, the number of 
 slaves amounting to 10,600. They were usually sold with the land 
 and sometimes mortgaged. They were supposed to be entirely sup- 
 ported by their masters in sickness and in health. Their marriages 
 were made at the expense of the mirasidars and the expenses of their 
 funerals were also defrayed by them. The slaves enjoyed some little 
 gratuity at every birth and received a certain established sum at the 
 principal Hindu festivals. A list of the yearly emoluments which a 
 slave was properly entitled to receive is noted below. They were not 
 treated harshly. 
 
 The quantity of land to be cultivated by a slave is an extent 
 capable of yielding 150 kalams of paddy. 
 
 Kalams. Gifts. 
 
 Varam of a Pullen ... 8 5f 
 
 Do. Pullichi .. 6 6i 
 
 Batta for ploughing 
 
 Swatuntrums for sowing 
 
 Reaping share at 5 per cent. 
 
 Thrashing 
 
 Pongal feast 
 
 Deepavali 
 
 Gramadavata 
 
 15 
 2 
 
 
 7 
 1 
 I 
 
 
 6 
 6 
 
 
 
 4 
 
 "i 
 
 Total annual 
 
 26 
 
 1 
 
 8 
 
 5f fanams. 
 
 For a marriage 
 
 Do. birth 
 
 Do. death 
 
 4 
 
 
 
 
 2 
 2 
 
 8 rupees. 
 2 fanams. 
 2 do. 
 
 Total .,. 
 
 30 
 
 H 
 
 Rs. 9 If fanams,
 
 Ixx 
 
 Ganara. — Slavery existed in the district, the number of slaves 
 amounting to 82,000- The right of sale was the master's exclusive 
 privilege, with or without the land. The slaves could also be let on 
 hire. They were fed and clothed by their masters, who also presented 
 them with a small sum of money on their marriages or on occasions of 
 particular ceremonies. The average quantity of food and clothing 
 given was — 
 
 Food. Clothing. 
 
 For a man — 
 
 l|Oanara seer of coarse rice, 2 pieces of canthy, 6 cubits 
 2 rupees' weight of salt, in some taluks, a cumbli 
 
 a little betel-nut and leaf. and a roomal. 
 
 For a woman — 
 
 1 seer ... ... ... 1 piece of cloth, 7 cubits. 
 
 For a child — 
 
 I seer ... ... ... 1 piece of cloth, 4 cubits. 
 
 The slaves were not cruelly treated, 
 
 Malabar. — There were slaves in the district numbering 100,000. 
 They were frequently transferred by sale, mortgage or hire. The 
 measure of subsistence to be given by the proprietor was fixed, and 
 he was bound by the prescribed customs of the country to see it 
 served out to the slaves daily. The slaves were in more comfortable 
 circumstances than any of the lower and poorer class of natives. 
 
 (D.) — Extracts from the Report of the Commissioners for the investigation 
 of alleged cases of Torture in the Madras Presidency^ 1855. 
 
 Many a witness has declared to us that the people would be satisfied 
 if the demands of the Revenue Officers were restricted to the just 
 Government dues ; we entertain no doubt but that the extortion, of 
 what are erroneously termed " Bribes," is univei'sal, and that when 
 payment cannot be obtained by fair means, foul will be resorted to. 
 Then is brought into play all that perfect but silent machinery which 
 combines the forces of Eevenue demands and Police authority ; the 
 most ingenious artifices which the subtlety of the native mind can 
 invent are had recourse to ; and it seems highly probable to us that it 
 is a common practice with the native officers to give their own illicit 
 demands precedence, when pecuniary means being more plentiful or 
 easily procurable, the process of extraction is more readily complied 
 with, under hopes and promises of future services, perhaps that of 
 assisting in cheating Government among others, expressly with a view 
 to keep the revenue demand as a corps de reserve to fall back upon, 
 the practice of oppression and violence to extract that, being not so 
 apparent an injustice in the eyes of the people as the application of 
 the same measures for mere private personal purposes.^ 
 
 ' Mr. Forbes, Collector of Tanjore, writes as follows : — " The people of India draw a 
 wide distinction between oppressive acts practised with a personal motive, and those, 
 which, however erroneously, they connect with a puhlic duty ; they will make complaint 
 upon complaint and appeal upon appeal for the redress of a private wrong, when they 
 will at the same time tacitly submit to a greater injury received in a pubUo act : the motive 
 of the one they see to be personal, and attach no personal motive to the other."
 
 Ixxi 
 
 The descriptions of violence commonly in vogue for revenue and 
 private extortion purposes, which have been spoken to in the course of 
 this inquiry, are as follow : — Keeping a man in the sun ; preventing 
 his going to meals or other calls of nature ; confinement ; preventing 
 cattle from going to pasture by shutting them up in the house ; 
 quartering a peon on the defaulter who is obliged to pay him daily 
 wages ; the use of the kittee ; anundal ; squeezing the crossed fingers 
 with the hands ; pinches on the thighs ; slaps ; blows with fist or whip ; 
 running up and down ; twisting the ears ; making a man sit on the 
 soles of his feet with brickbats behind his knees ; putting a low caste 
 man on the back ; striking two defaulters' heads against each other, or 
 tying them together by their back hair ; placing in the stocks ; tying 
 the hair of the head to a donkey's or buffalo's tail ; placing a necklace 
 of bones or other degrading or disgusting materials round the neck ; 
 and, occasionally, though very rarely, more severe discipline still. 
 
 Some stress seems to have been laid upon the existence of " instru- 
 ments " of torture, and many of the gentlemen who have sent in 
 reports to Government state their belief that the kittee has become 
 obsolete in their districts. 
 
 That the " anundal " (in Telugu gingeri) or tying a man down in 
 a bent position by means of his own cloth or a rope of coir or straw 
 passed over his neck and under his toes is generally common at the 
 present day, is beyond dispute ; and we see no reason to doubt that the 
 kittee (in Telugu cheerata) is also in frequent use. It is a very simple 
 machine, consisting merely of two sticks tied together at one end, 
 between which the fingers are placed as in a lemon squeezer ; but in 
 our judgment it is of very little importance whether this particular 
 form of compression be the one in ordinary use or not, for an equal 
 amount of bodily pain must be produced by that which has superseded 
 the kittee, if anywhere it has gone out of vogue, the compelling a man 
 to interlace his fingers, the ends being squeezed by the hands of peons, 
 who occasionally introduce the use of sand to gain a firmer gripe ; or 
 making a man place his hand flat upon the ground and then pressing 
 downward at either end a stick placed horizontally over the back of 
 the sufferer's fingers. Independently of the general testimony to its 
 use deposed to before us by the complainants whom we have personally 
 examined, we find its use believed in by Mr. G. Forbes, and admitted 
 by the Sheristadar, who says — " Kittees are sometimes kept in both 
 taluks and villages ; if they are not forthcoming in places where they 
 are required for use, the village carpenter is immediately ordered to 
 procure the required number of kittees, which order is implicitly 
 obeyed ; " and in the ease of Akki-nary Appana, we find a Tahsildar 
 tried and sentenced to six months' hard labour in irons and a fine of 
 Rs. 200 for having applied this instrument known in Telugu districts 
 by the name of cheerata to the fingers of the complainant so lately as 
 the middle of the last year. 
 
 It is quite certain that the practice of torture prevails in a much 
 more aggravated degree in Police cases than for realizing the revenue. 
 The modes resorted to in the former appear to be more acute and 
 cruel, though we doubt if anything like an equal number of persons is 
 annually subjected to violence on criminal charges as for default of 
 payment of revenue.
 
 Ixxii 
 
 We have instances of torture being freely practised in every relation 
 of domestic life. Servants are thus treated by their masters and fellow 
 servants ; children by their parents and schoolmasters for the most 
 trifling offences ; the very plays of the populace (and the point of a 
 rude people's drama is its satire) excite the laughter of man}^ a rural 
 audience by the exhibition of revenue squeezed out of a defaulter coin 
 by coin through the appliance of familiar " provacatives " under the 
 superintendence of a caricatured Tahsildar ; it seems a " time-honored " 
 institution, and we cannot be astonished if the practice is still widely 
 prevalent among the ignorant uneducated class of native public servants. 
 
 * ♦ * • 
 
 Among the principal tortures in vogue in Police cases we find the 
 following : twisting a rope tightly round the entire arm or leg so as to 
 impede circulation ; lifting up by the moustache ; suspending by the 
 arms while tied behind the back ; searing with hot iron ; placing scratch- 
 ing insects such as the carpenter beetle, on the navel, scrotum and 
 other sensitive parts ; dipping in wells and rivers till the party is half 
 suffocated ; squeezing the testicles ; beating with sticks ; prevention of 
 sleep ; nipping the flesh with pincers ; putting pepper or red chillies in 
 the eyes ; these cruelties occasionally persevered in until death sooner 
 or later ensues. 
 
 * * « » 
 
 In the course of this investigation there is one thing which has 
 impressed us even more painfully than the conviction that torture 
 exists ; it is difficulty of obtaining redress which confronts the injured 
 parties. 
 
 In stating this melancholy fact we are very far from seeking to cast 
 any unfounded imputation upon either the Grovernment or its European 
 officers. We think that the service is entitled to the fullest credit for 
 its disclaimer of all countenance of the cruel practices which prevail 
 in the Revenue as well as in the Police department. We see no reason 
 to doubt that the native officials from the highest to the lowest are well 
 aware of the disposition of their European superiors ; and although 
 very many of the parties, who have appeared before us in reply to our 
 nquiry why they have not made an earlier complaint, have asked what 
 s the use of appealing to the Collector, we have seen nothing to 
 rapress us with the belief that the people at large entertain an idea 
 that their maltreatment is countenanced or tolerated by the European 
 officers of Government. On the contrary all they seem to desire is that 
 the Europeans in their respective districts should themselves take up 
 and investigate complaints brought before them. The distances which 
 the natives will often travel at great personal loss and inconvenience to 
 make complaints even of a very petty nature to the Collector or Sub- 
 CoUector is of itself a proof of the confidence which they place gene- 
 rally in those officers. The abstinence of the native officials from such 
 practices in or near stations where Europeans, be they civilians, 
 surgeons, commissariat or other officers, reside, and the prevalence of 
 torture increasing in proportion as the taluk appears less exposed to 
 European scrutiny, are strong arguments in favor of a consciousness 
 on the part of the native officials that they cannot with impunity resort 
 to illegal and personal violence when it admits of easy and speedy 
 substantiation before the European authorities of the district ; and the
 
 Ixxiii 
 
 whole cry of the people which has come up before us is to save them from 
 the cruelties of their fellow natives, not from the effects of unkindness 
 or indifference on the part of the European officers of Government. 
 
 What then, it may be asked, are the reasons on which we found 
 our opinion that while the natives have confidence in their European 
 superiors, they do not promptly seek redress at their hands in every 
 instance of abuse of authority ? They are as follows : In the first 
 place the infliction of such descriptions of ill-treatment in the collection 
 of the revenue as we have above specified has, in the course of centuries, 
 come to be looked upon as " Mamool," customary, a thing of course to 
 be submitted to as an every day unavoidable necessity." It is gene- 
 rally practised probably only on the lower order of ryots, whose 
 circumstances least permit of their making any complaints on the one 
 hand, whilst their ignorance and timidity render them more submissive 
 on the other ; such is the native character that very often those able 
 and ready to pay their dues will not do so unless some degree of force 
 be resorted to. '* I brought 14 rupees from my house," says a ryot, 
 in a deposition referred to by Mr. Lushington, " but only paid 6. I 
 brought the said money to pay, but as no violence was used towards 
 me, I did not do so. Had I been compelled, I would have paid 
 them." * And in all these cases, it is probable that a sense of the 
 justness of the claim operates in their minds against seeking redress 
 for ill-treatment, which, bat for their own stubbornness, they might 
 have avoided. The violence ordinarily used is not of such a character 
 as to leave those marks upon the person which might be appealed to 
 in incontestable corroboration of the truth of the sufferer's story, and 
 we cannot abstain from reiterating our opinion that the great propor- 
 tion of the acquittals and the lightness of the punishments consequent 
 upon such cases as appear to have been substantiated to the satisfaction 
 of the magistracy, may have had a serious effect in deterring the ryots 
 from bringing forward more numerous complaints. 
 
 The distances which those who wish to make complaints personally 
 to the Collector have to travel ; the fear that their applications by 
 letter if permitted to reach head-quarters unadulterated by misinter- 
 pretation will be returned with the ordinary endorsement of a reference 
 to the Tahsildars ; the expense and loss of time which a visit to, and 
 more or less prolonged attendance upon, the Collector's office entail ; 
 the utter hopelessness, after all is said and done, of the European 
 authorities personally investigating the case, generally speaking ; the 
 persuasion that a reference of the petition to the Tahsildar is likely to 
 end in a nullity ; the immense power wielded by the native servants in 
 the districts and those in the Collector's office, who work together in 
 concert to render all complaints to the superior European officials 
 nugatory ; the probability that if any trial takes place before the 
 Tahsildar the complainant's witnesses will either be bribed and bought 
 off or intimidated, or, if they appear, that their statements will not be 
 
 * Mr. Forbe8, Collector of Tanjore, writes as follows : — " The ryot will often appear 
 at the cutcherry with his full liabilities in his possession, tied up in small sums about his 
 person, to be doled out, rupee by rupee, according to the urgency of the demand, and will 
 sometimes return to his village having left a balance undischarged, not because he could 
 not pay it, but simply because he was not forced to do so." 
 
 K
 
 Ixxiv 
 
 believed, or will be garbled, and an unfavourable report upon tbem 
 returned to the Collector ; above all perhaps, the conviction that he 
 who seeks redress at the hands of the European is thenceforth a marked 
 man amongst the native officials ; that his whole future peace and 
 safety are jeopardized by this attempt, and that every means of 
 annoyance and of oppression, even to false accusations of felony, will 
 be brought into play against him, until his own ruin and that of his 
 family are sooner or later consummated ; some or all of these circum- 
 stances unite in every case, in more or less forcible combination to 
 render redress not only difficult, but in many instances almost impossi- 
 ble ; at the same time it is to be remarked that the authority of the 
 Tahsildar must be supported by his European superiors against the 
 numerous false charges which are unsparingly preferred by the intrigu- 
 ing ryots. 
 
 » » • » - 
 
 The character of the Native Police has been drawn by more than 
 one writer in the reports furnished to Government. 
 
 Mr. Mackenzie writes as follows : — " I have no hesitation in stating 
 that the so-called Police of the mofussil is little better than delusion. 
 It is a terror to well disposed and peaceable people, none whatever 
 to thieves and rogues, and that if it was abolished in toto the saving of 
 expense to Government would be great, and property would be not a 
 whit less secure than it now is." 
 
 Mr. Saalfelt says : — " The Police establishment has become the 
 bane and pest of society, the terror of the community, and the origin 
 of half the misery and discontent that exist among the subjects of 
 Government. Corruption and bribery reign paramount throughout 
 the whole establishment ; violence, torture and cruelty are their chief 
 instruments for detecting crime, implicating innocence or extorting 
 money. Robberies are daily and nightly committed, and not unfre- 
 quently with their connivance. Certain suspicious characters are taken 
 up and conveyed to some secluded spot far out of the reach of 
 witnesses ; every species of cruelty is exercised upon them ; if guilty, 
 the crime is invariably confessed and stolen property discovered ; but a 
 tempting bribe soon releases them from custody. Should they persist 
 in avowing their innocence, relief from suffering is promised by 
 criminating some wealthy individual, and in the agony of despair he is 
 pointed to as the receiver of stolen goods. In his turn he is compelled 
 to part with his hard earned coin to avert the impending danger. 
 Even the party robbed does not escape the clutching grasp of the 
 heartless peon and duffadar ; he is threatened with being torn from his 
 home, dragged to the cutcherry and detained there for days or weeks 
 to the actual detriment of his trade or livelihood, unless he point out 
 the supposed thieves. The dread of, or aversion to, the cutcherry is so 
 great that the owner would sooner disavow the stolen article and dis- 
 claim all knowledge of the property, though his name be found written 
 upon it in broad characters ; while such is the actual state of things, 
 and while the people entertain such a lively horror of the Police, it is 
 not possible to expect a single victim of torture to come forward and 
 arraign his tormentors ; or to bring the charge home to any one of 
 them after the deed has been perpetrated in some ruined fort or deep 
 ravine situated miles away from the town or village."
 
 Ixxv 
 
 Mr. J. Mackenzie, merchant of Bimlipatam, gives the following 
 account : — " Since the receipt of your communication, however, I have 
 made it my cluty to inquire into the subject as far as my opportunities 
 permitted, and the result of my inquiries leads me to the conclusion 
 that the charge has been greatly exaggerated, and that although the 
 use of torture or coercion in the collection of the revenue cannot be 
 denied, its practice is of very rare occurrence, and not at all of the 
 deep and atrocious nature alleged, and I can confidently state, that 
 if is not had recourse to in order to collect an immoderate kist, or, as 
 some writers in the Athencexan assert, to screw out of the ryot, over 
 and above his kist, a further sum for the benefit of the revenue servants. 
 I am convinced that this charge is quite unfounded at least as regards 
 the district of Vizagapatam. It is not in this way that the revenue 
 servants make money. I believe I can explain wlien torture is made 
 use of. There is a class of ryots known as nadars, (paupers) whom a 
 faulty revenue system has taken out of their proper position and 
 converted into ryots, whereas they were never intended for any other 
 position than that of laborers or servants to Mootabar ryots. Now 
 these nadars are compelled to undertake the cultivation of lands which 
 the Mootabar ryots are not disposed to take up. It is unsafe to make 
 them such advances as would give them the means of well cultivating 
 their lands ; they cannot be trusted ; they are not to be made honest or 
 respectable ; their lands are consequently badly cultivated and their 
 crops scanty, and scanty as they are, they generally endeavour to 
 make away with them and to evade the payment of their kist, as they 
 really live by what they can pilfer. Now it is in such cases that 
 punishment, or, as it is called torture, is had recourse to. The 
 Tahsildar knows that crop has been made away with, and that the ryot 
 has the proceeds concealed on his person ; he refuses to pay. What is 
 the Tahsildar to do ? Sell his property ? He has no tangible property. 
 Send him to jail to be well lodged and fed at the expense of Govern- 
 ment ? He does neither ; he flogs him or coerces him in some other 
 way, and rupee by rupee, anna by anna, drop out of unexpected places. 
 One such case is noised about, and the example serves for a long 
 time. This I believe to be the true statement of the torture used in 
 this district. I need not say that it is difficult to prove. The 
 Tahsildar takes good care that no witnesses who are likely to give 
 evidence against him are present. No laws can eradicate it, it has 
 been the practice of the country from time immemorial ; the natives in 
 general think it all right ; the very nature of the people must first be 
 changed." 
 
 (E.)— T/iC Madras Byot by Mr. H. A. Dalyell in 1866. 
 
 During the ten years preceding 1866, the price of all agricultural 
 produce has nearly doubled, and that consequently the agricultural 
 proprietor was much better off at the beginning of 1866 than he was 
 at the beginning of 1856, and that there was a still greater improve- 
 ment in his position as compai^ed to what it had been in 1846. As 
 nearly the whole of his outgoings, whether for food or wages, are 
 mere deductions from the gross produce of the land as his family
 
 Ixxvi 
 
 subsists on the grain raised and wages are paid in the same commodity, 
 his surplus produce has remained nearly the same in quantity during 
 the twenty years, whereas the market value of that surplus has 
 increased threefold, if no allowance be made for the depreciation of the 
 value of the precious metals which has taken place during this period. 
 
 In order to the better understanding of the extraordinary improve- 
 ment that has taken place in the position of the agricultural interest, 
 it will be advisable to consider the nature of the tenures on which 
 land is held in the Madras Presidency. As already stated, a very 
 large proportion of the cultivated area is held direct from Government 
 by peasant proprietors termed Government ryots. According to the 
 statistical returns, there were no less than a million and three- 
 quarters of these persons entered in the registers as land-holders, and 
 their holdings are usually infinitesimally small. Only 420 paid £100 
 and upwards as Government land-tax, which is supposed to represent 
 half the net produce of the land. Upwards of a million and a half 
 paid less than Rs. 31 or £3-2-0, and of these latter, upwards of a 
 million paid less than E,s. 10 or £1. As has been already shown, the 
 cultivated land held by the registered ryots is about 18 million acres, 
 the average extent of the holdings is therefore 9 acres, but if the 
 million sub-tenants who are entered in the returns as holding under 
 these registered ryots be taken into account, the average size of the 
 holdings will be reduced to 6 acres, supposing, of course, that every 
 registered ryot who sub-lets land retains an equal quantity for his 
 own use. This minute sub-division of the land into small holdings 
 has often been advanced as the great objection to ryotwari system of 
 tenure, but after all it should be remembered that this objection 
 applies equally to the zemindari system, and that, notwithstanding 
 the difference in the value of money, only a few years back there 
 were nearly two millions of small landed proprietors in France whose 
 holdings in no case exceeded 5 acres ; that in the present Kingdom 
 of Prussia, out of a population of nine millions dependent on agri- 
 culture, there are upwards of two million proprietors of land, and that 
 upwards of a million of these do not possess more than 3 acres ; 
 and that in Ireland, in 1861, jthere were 39,210 persons holding 
 land less than an acre in extent as proprietors or tenants, 75,141 
 holding between I and 2 acres, and 164,000 from 5 to 15 acres. 
 
 Unfortunately the share of Government was generally fixed too 
 high, and the result of this over-assessment, increased as its pressure 
 has been by the fall in the value of produce since the settlement was 
 made, has never allowed the system a fair trial. Various restrictive 
 rules also led to much interference with the ryots, though they were 
 far from being a necessary consequence of the system. These 
 restrictions are now being removed and the reductions recently made, 
 or in progress, and the correct survey, classification and re-assess- 
 raent of the land now in contemplation, will do away with these 
 disadvantages, and it may be expected that the superiority of a 
 system which encourages industry and enterprise, by being based 
 pn individual proprietorship, will be more clearly evinced.
 
 Ixxvii 
 
 The position of every description of landholder^ whether ryot, 
 zemindar, or inamdar, must have improved very materially during 
 the last 15 years. So far as the first class was concerned, the fall in 
 prices^ which had taken place between the early part of the century, 
 when the money rates of land-tax payable to Government were fixed, 
 and the year 1850, had had such a serious effect upon their resources, 
 that very liberal reductions were then made in the assessment of all 
 the ryotwari lands in those districts where the rates pressed with 
 severity upon the ryots or where they were so high as to keep land 
 out of cultivation altogether. A special department for the re-assess- 
 ment of all districts on liberal and scientific principles was also 
 organized. The position of the Government ryot was consequently at 
 once much improved and the steady rise in prices, which has taken 
 place since that period, has, of course, still further benefited him, but 
 this latter benefit has also been obtained by the holders of land on 
 other tenures, the zemindar and the inamdar, and their respective 
 tenants. It has been already shown that an acre of unirrigated land 
 produces on the average 190 Madras measures, or about 5 cwt. of 
 
 grain, and that an acre of irri- 
 ^%lTue of the produce of 6 acres of ""'' gated land produces 370 Madras 
 
 dryland .. 50 measures or 10 cwt of rice. The 
 Do. do. of 2 acres of Government ryot, therefore, who 
 
 wetland .. ^ j^^j^^ ^^^^ g ^^^^^ ^^ '' dry ^^ land 
 
 105 and 2 acres of " wet," for which he 
 
 Deduct tax (say) . . 20 paid, say, Es. 20 per annum to 
 
 g,5 Government as land-tax, obtained 
 
 for the produce Rs. 105 in 1856 and 
 
 1866- as. Rs. 209 in 1866 as noted in the 
 
 value of the produce of 6 acres of „ • r^ xi, i.i i i , i 
 
 dryland 104 margin. On the other hand, the 
 
 Do. do. of 2 acres of ryot holding the same extent of 
 
 wetland .. 105 land under a zemindar or inamdar, 
 
 209 after giving half the produce to 
 
 Deduct tax (say) , . 20 his landlord, obtained in 1856 only 
 
 — — Rs. 52-8-0, the price of 15 cwt. of 
 
 1 dry grain and 10 cwt. of rice in 
 
 1856, and in 1866 Rs. 104-8-0, 
 
 the price of the same quantity of grain in that year, the zemindar, 
 
 or inamdar, in this case, taking the balance of advantage obtained by 
 
 the Government ryot. This improvement in the position of the 
 
 agriculturist has manifested itself in the very large increase in the 
 
 area of land under cultivation, for, whereas, even in 1856, there were 
 
 less than 10 millions of acres held by registered Government ryots, 
 
 there were upwards of 16 millions of acres so held in 1865. 
 
 The position of the agricultural laborer and, indeed, of all those 
 dependent upon wages had not, at any rate, seriously deteriorated 
 during the 10 years preceding 1866, though the enormous increase, 
 which has taken place in the price of food, must press hardly upon 
 those trades for which the remuneration is fixed, by custom, at a 
 certain rate in money. When reporting on this subject about three 
 years ago, the Board of Revenue, after communicating with the 
 Collectors of districts, stated that, as a rule, all agricultural labourers
 
 Ixxviii 
 
 were still paid in grain, and that these grain wages had not risen 
 materially during late years. As to other classes of laborers who 
 were paid in coin, they observed that their wages had risen consider- 
 ably, and that the increase had then kept full pace with the enhanced 
 price of food. Compared with former rates, the wages were stated 
 to be, in some cases, doable of what they formerly were, but the 
 general proportion of increase was 50 per cent,, and only in a few 
 cases had the increase been as small as 25 per cent. These conclu- 
 sions are borne out by the increase which has taken place, during the 
 last 15 years, in the pay of all domestic servants in the families of 
 Europeans in India. 
 
 The position of that portion of the population whose wealth is 
 derived from mercantile operations has improved, at any rate, in an 
 equal ratio with that of the agriculturist, if we may judge by the 
 progress which has taken place in the trade of the Presidency. 
 The principal portion of this trade is carried on at the port of Madras, 
 that is, about one-half of; the export trade and two-thirds of the 
 import trade. The greater part of the balance of the export trade is 
 from the ports of Cocanada, Negapatam and Tuticorin, on the Bast 
 Coast, and from Calicut, Cochin, and Mangalore, on the Western 
 Coast. Large exports of cotton take place from Cocanada and Tuti- 
 corin, and of grain from Negapatam, whereas the principal articles of 
 export from the western ports are coffee and oil-seeds. The principal 
 item of import at most of these ports is piece-goods, though grain is 
 also largely imported into the Malabar district. 
 
 On the whole, then, it is impossible to arrive at any other conclu- 
 sion than that the mass of the population of the Madras Presidency 
 have considerably progressed in wealth during the 10 years previous 
 to the famine of 1866. The whole of the agricultural interest, which 
 includes certainly three-fourths and perhaps four-fifths of the popu- 
 lation, were in twice as good a position at the end of this period 
 as they had been at its commencement, and a large number of them 
 had made enormous gains during the cotton famine in England, the 
 ryots of the district of Bellary alone having, it is estimated, obtained 
 an increase to their capital of nearly a million and a-half sterling on 
 this account. The mercantile class, or, at any rate, such portions 
 of them as were interested in the over-sea trade, had doubled their 
 business, and the position of the poorest classes had certainly not 
 deteriorated. Further, while private wealth had increased to this 
 extent, taxation had been augmented by less than 25 per cent., so 
 that, certainly, three -fourths of the increased profits obtained by the 
 population were enjoyed tax free. At the commenceroent of the 
 distress the people were, consequently, in a better position than they 
 had ever occupied in any previous year of famine. 
 
 (F.) — Rcmlh of the enquiries made by the Board of Revenue as to the con- 
 dition of the labouring classes in 1872 {Froceedings of the Board of 
 Revenue, dated llth November 1872, No. 2179). 
 
 Board of Revenue — Labourers. — The general opinion was that the 
 condition of the labouring classes was i*apidly improving. Mr. Brandt
 
 Ixxix 
 
 and Mr. Stuart took the opposite view, but they evidently referred to 
 farm labourers, the old praedial slaves. Wages paid in grain, like 
 those of farm labourers, continued almost stationary, and the rapid 
 increase in money wages was to a great extent neutralized by as rapid 
 a rise in prices. The labouring classes had, however, fully shared in 
 the general improvement which was visible everywhere, and in many 
 places large public works, increasing trades, and improved facilities 
 for emigration had made their advance more rapid than that of other 
 classes. 
 
 Honorable V. Ramaiyangar. — The agricultural labourers in Tanjore 
 called " pannials " were a kind of semi-serfs squatting on the estates 
 to which they were attached. According to the practice of the 
 district, 40 goolies of dry laud out of the holdings of a mirasidar 
 were exempted by Government from assessment and made over to 
 each '* pannial " working under him. The mirasidar supplemented 
 this with a grant of 60 goolies, of which he himself paid the 
 assessment. He further granted to each laboui'er 50 goolies of 
 " nunjah " land free of assessment. The 100 goolies of dry laud was 
 calculated to yield 7 kalams^ of ragi, besides vegetables and enough 
 of ground-nut to supply him with oil for the use of the family. The 
 50 goolies of wet land were computed to yield 5 kalams of paddy. 
 His wages for daily work consisted of a Madras measure of grain per 
 diem and this for about nine working months in the year would give 
 him 9x30 or 270 measures = ll^ Tanjore kalams. His calavassam 
 on the threshing floor at the time of harvest gave him about 11 
 kalams more. The pannial 's wife earned, by beating paddy and 
 separating the husk from the grain on the mirasidar's estate, about 6 
 kalams of grain a year at the rate of 12 measures a month, so that 
 the total earnings, of the family in one year were as below : — 
 
 
 
 
 KALAMS 
 
 Yield of dry land 
 
 Yield of wet land 
 
 Daily wages 
 
 Calavassam 
 
 Earnings of the labourer^ 
 
 s family 
 
 ' 
 
 . 7 
 . 5 
 . 11 
 . 11 
 
 6 
 
 
 
 Total . 
 
 . 40 
 
 which at an average price of one rupee a kalam was equal to about 
 Rs, 40 in money. The labourer generally earned something by work- 
 ing as cooly during three months in the year in which he was not 
 employed in the field, and including this and the presents he got on 
 festival days, the total earnings of the family were Rs. 4 a month. A 
 non-agricultural labourer and his family in the rural parts of the 
 district earned about the same sum at the rate of three annas per 
 diem. 
 
 The agricultural labourers in other districts did not earn so much 
 as in Tanjore. In some districts, their wages were, on an average, 
 but two Madras measures of grain per diem, or 60 measures a month, 
 equal to 12x60 or 720 meaures or 90 merkals per annum. This 
 
 ' A Tanjore kalam 3 Madras merkals or 24 measures, each containing 133 tolas 
 of rice.
 
 Ixzx 
 
 was wortli Rs. 30 or Rs. 2| per month. Taking the whole Presi- 
 dency, he was of opinion that it would probably not be much wide 
 of the mark to assume the average earnings of unskilled labourers to 
 bo about Rs. 3 a month. There was no doubt that the wages of 
 labour had increased since fasli 1263 (1853-54) though not in propor- 
 tion to prices, the latter having risen by 100 per cent, while the 
 former rose by about 50 per cent. So far the condition of the labour- 
 ing classes must be held to have improved. 
 
 Mr. P. Chentsal Row. — The money wages of labourers everywhere 
 nearly doubled, but wages to agricultural labourers were paid in grain 
 and continued unaltered. A full grown labourer in Nellore (of which 
 Mr. Chentsal Row was a native and a landholder) got from I| to 2 
 tooms^ of paddy or one toom of jonna or ragi monthly with a cumbli 
 and a pair of slippers a year. This was all that had been always paid. 
 The condition of the agricultural labourers had not materially or at all 
 improved, excepting in towns and villages in the vicinity of the 
 railway. 
 
 Mr. Wedderhurn, Collector of Goimhatore. — Wages were good and 
 employment general ; in some places skilled labour, such as, that of 
 the carpenter, the mason, &c., was very high owing to the extension 
 of the railway. 
 
 There was an increase in money wages ; grain wages were the 
 
 same as to quantity ; but more 
 valuable relatively to money. The 
 cultivators or field-hands of the 
 irrigated lands working for the 
 landlords remained in much the 
 same condition ; ryots cultivating 
 their own lands, in other words, 
 owners of dry land, had, by the 
 sinking of wells at their own cost, 
 without being charged for the improvement, as was usual under the 
 old native system, advanced in wealth and comfort. The ryot pro- 
 prietor and his sons worked their well, tended the cattle, and ploughed 
 the fields J all worked who had not the means to be idle; the females 
 also spun. 
 
 Next there were the lowest classes in every village who earned 
 their subsistence by cutting grass, weeding fields, &c. ; except in 
 unfavorable seasons when grass failed or cultivation was not carried 
 on, they maintained themselves according to their own standard ; 
 when there was no thought of the morrow and people multiplied 
 without the restraints which better circumstances or higher standards 
 of living entail, there was no likelihood of much advancement. But 
 though emigration agents were beating up for recruits in every village 
 and bazaar, and promised food, clothing and Rs. 6 per mensem, 
 apparently they met with limited success; 90 in a population of If 
 millions appeared before him as magistrate, to be attested, in the 
 course of 12 months from November 1871 to November 1872. There 
 was neither fear of the sea nor of distant travel and those that went 
 had usually no local tie. 
 
 
 Unskilled field labour, in 
 cash or kind. 
 
 Per day — 
 
 Man 
 
 Woman . . 
 Per month — 
 
 Man 
 
 30 years ago. At present. 
 
 RS. A. p. RS. A. p. 
 
 ..014 036 
 
 .. 10 18 
 
 .. 1 12 4 
 
 » A toom = 37-1 Madras measures ; its value in the country was about Rs. If.
 
 Ixxxi 
 
 Mr. Venhatesiah, Deputy Collector, Chingleput District. — The wages 
 or earnings of tlie labouring classes were then nearly double of what 
 they were some fifteen years before, owing partly to the rise in the 
 price of grain and partly to the liberal rates at which they were paid 
 by the Railway Company and the Public Works Department. A 
 common labourer working at the roads got as much as three annas a 
 day, while his wife got an anna and-a-half. Thus a family consisting 
 of a wife and a husband made up about Rs. 80 a year exclusive of 
 non-working days ; whereas their annual income in former days had 
 not exceeded half the latter sum. 
 
 Mr. Chase, Gollector of Kurnool. — Agricultural labourers were 
 generally paid in grain and as the rates of payments seldom changed, 
 their condition had been stationary and had made no perceptible 
 improvement. The wages of non-agricultural labourers, however, had 
 considerably increased, owing to the operations of the Irrigation 
 Company and the general rise of prices ; but after the completion of 
 these works in 1870 and the fall in prices, especially in that of cotton, 
 the rates of wages had a downward course, and the condition of the 
 labourers at that time was not much better than what it was 15 years 
 before ; and any increase in the rate of wages was nearly counter- 
 balanced by the enhancement of prices, so much so that when coolies 
 were wanted for road work at a time when field work was available, 
 they invariably preferred the latter, which was paid for in grain, to 
 the former, which was paid for in money. Their food and clothing 
 were of the same kind as what they were before. They ate the same 
 coarse grain and used as condiments the same chatney composed of 
 hemp-leaves or tamarind fruit. They wore the same coarse clothes- 
 and slept on the same rope cots. The women put on no more jewels 
 than they did in former days ; he mentioned this because it was a well 
 known fact that when a native was improved in condition, the first 
 thing he did was to purchase jewels for his wife and children. 
 
 Mr. Sribaliah, Deputy Collector, South Arcot. — The position of the 
 labouring classes had improved. In the South Arcot district indigo 
 cultivation had increased enormously. Indigo vats were found every- 
 where. The rate of daily wages to labourers in fields had almost 
 doubled in the past years when there had been a rise in prices. 
 There was a demand for labourers in every direction. A labourer in 
 the field got his wages in kind at the time of harvest and in money at 
 other times. In cash it was two annas and in grain a little more 
 than three Madras measures. Labourers working in the indigo vats 
 obtained three annas a day ; but they were not employed all the year 
 round. He estimated their monthly income at Rs. 3| or Rs. 42 per 
 annum. There was another class of labourers who worked for 
 monthly wages in kiud. Their monthly wages were 27 Madras 
 measures of paddy or ragi, besides one meal every day. They also 
 got about 7 or 8 per cent, of the outturn at the time of harvest called 
 calavassam and also a rupee in cash. If the approximate outturn of a 
 field managed by one servant were 100 kalams, the labourer's income 
 would be — monthly wages =^ 324 Madras measures, calavassam = 252 
 Madras measures, and this at a rupee for 30 measures would be 
 Rs. 20 ; adding to this one rupee in cash and also the money value 
 of one meal every day, which at 6 or 8 pies a day amounted to one
 
 Ixxxii 
 
 rupee in tlie month or 12 rupees in the year, the total wages would 
 amount to Rs. 33 and it was more or less this sum that the labourer 
 got from his master every year. This did not include the wages of 
 his wife. 
 
 Mr. PacJde, Golledor of Tinnevelly. — The wages of labour in this 
 district were high. Four annas a day for men coolies had been the 
 general rate for the previous 10 years. At harvest time everywhere 
 and throughout the year in the northern taluks the rate had been as 
 high as six annas a day, but latterly there was a decrease and during 
 the non-cultivation season of 1872 any quantity of labour was pro- 
 curable at Palamcottah at from three annas to three annas and-a-half 
 per diem. At the cotton screws at Tuticorin men coolies were 
 receiving four annas a day, and in the coffee estates on the hills the 
 same rates prevailed. The agricultural pullars attached to the land 
 received their wages in kind as formerly. The position both of the 
 free labourers and the indlars in this district was remarkably good ; 
 they were better fed and clothed than similar classes in any of the 
 districts south of Madras, and their houses as a rule were superior to 
 and were very diflferent from the squalid huts that were to be found 
 elsewhere. 
 
 Mr. Brandt, Sub-Collector of Tinnevelly. — The following was the 
 result of his experience and of enquiries made unofficially among 
 those personally acquainted with the matter, and among some of the 
 labourers and coolies themselves. The hereditary cultivating peasants, 
 pnllars as they were there called, who not many years previously had 
 been absolute slaves and whose condition was but little above slavery, 
 were invariably paid in grain, whether in zemindaries or lands held 
 by other landowners. The working season was about 8 or 9 months 
 in the year, of which some 60 days they were employed in cultivation 
 and some 40 days in harvesting operations ; during the rest of these 
 8 or 9 months they got some odd work in the way of baling water 
 and so on. 
 
 The earnings of apullan and his wife during the working season 
 in the Valliyur division of the N^nguneri taluk were as follows : — 
 
 Kotahs. Merkals. Measures. 
 Two measures of rice a day or for 9 
 
 months ... 
 Harvest allowances ... 
 Gleaning 
 
 Special allowances called sivatan- 
 tranis or nallanashtam (allowances 
 for good or for bad) as in the case 
 of a birth, marriage, maturity of 
 
 a child or death in the family ... 6 
 
 Calculating the kotah at Rs. 6 in money this was Hs- 36 in the year. 
 The expenditure was as follows : — 
 
 RS. 
 
 Value of diet and household expenses... ... ... 24 
 
 Drink, without which they would not work ... ... 6 
 
 Clothing ... ... ... ... ... ... 6 
 
 Total ... 36 
 
 3 
 
 4 
 
 4 
 
 1 
 
 10 
 
 4 
 
 1 
 
 
 

 
 Ixxxiii 
 
 In Shermddevi in the Ambasamu- 
 dram taluk, a pnllan was reckoned 
 to get about a measure and-a-half 
 and his wife a measure a day in 
 the working season or 
 
 Allowances at peshanam harvest ... 
 Do. at kar harvest ... 
 
 Swatantram ... ... •... 
 
 By other field labour 
 
 Gleaning 
 
 Extra jobs 
 
 Kotahs. Merkals. Measures. 
 
 1 
 
 10 
 
 3 
 
 
 
 10 
 
 4 
 
 
 
 7 
 
 4 
 
 
 
 1 
 
 3 
 
 2 
 
 10 
 
 
 
 
 
 4 
 
 
 
 2 
 
 
 
 
 
 
 
 equivalent to Rs. 42 per annum. The expenditure was fully equi- 
 valent to the income. For a considerable part of the year these 
 labourers could not take a full meal at all. 
 
 A cooly or day labourer's wages varied from two annas to three 
 annas four pies per diem and his wife's earnings were taken at from 
 one anna four pies to two annas, according to the nature of the work; 
 for mere carrying and light jobs the lower rates were given ; for the 
 higher, such work as erecting mud walls^ rude building operations 
 and so on, was exacted. The higher rate was that usually paid by 
 the Public Works Department. They were paid sometimes in kind 
 and sometimes in money. Allowing for feast days, days on which 
 religious ceremonies, bathing in oil, &c., were performed, a cooly 
 would not work more than two-thirds of a month and the working 
 season could not be put down at more than 8 months ; the earnings 
 of a cooly and his wife might accordingly be taken at between Rs. 48 
 and Rs. 60 a-year, according to the nature of their work, and taking 
 their expenditure as equivalent to 7 kotahs of paddy (or at Rs. 6 a 
 kotah) equivalent to Rs. 42 or at the higher rate as equivalent to Rs. 
 55 a year, there was a margin of saving which, however, was actually 
 but seldom put by. There was, however, no doubt that this class was 
 better off than the hereditary farm servants. 
 
 The slicinars or palmyra-climbers simply got a share of the sweet 
 toddy and the jaggery or coarse sugar which they collected, from 
 their employers. One shanan could not extract the produce of more 
 than 30 trees in the working season and from this he got a share and 
 sold such of the jaggery as he did not require for consumption. The 
 working season comprised some 8 months and his earnings could not 
 be more than Rs. 3 or Rs. 3-8-0 per mensem, or in other words Rs. 
 24 or Rs. 28 a-year. They had only one meal a day, consisting of 
 rice or other grain, with some toddy or jaggery during the daytime. 
 
 On the whole, the labouring classes could earn little more and 
 often not enough to keep them in the bare necessaries of life ; where 
 a man and his wife had children not old enough to contribute their 
 small quota of labour, they were still more hardly pressed ; when their 
 children were old enough to labour, their family earnings would be 
 more, while their expenditure was not proportionately increased. 
 There had been no increase in the wages of the hereditary farm 
 labourers nor was their any likelihood of its increase. These people
 
 ixxxiv 
 
 were destitute of any wish, or, at all events, any idea as to how to 
 better themselves ; they had no inclination to emigrate, as many of 
 the cooly class did. If they could live and marry in a condition short 
 of absolute destitution, that was enough for them. In the earnings 
 of day labourers there had been a rise as calculated in money as there 
 had been still more markedly in the remuneration of more skilled 
 labour, such as that of carpenters, goldsmiths, ironsmiths, &c. ; but 
 these have not been, in the case of th& former at all events, more than 
 commensurate with the diminished purchasing power of money. 
 
 In the condition of the farm-labourers there had been one decided 
 improvement, of which they themselves were aware, that their employ- 
 ers could not ill-treat them and overwork them with impunity, and 
 they knew that they could have redress and to whom to apply for it ; 
 and compulsoi-y labour was at an end. But so strong was the feeling 
 of dependence on their employers and so potent the influence of the 
 latter, that in consideration of a small present, cases of serious ill- 
 usage and violence were even then hushed up. They were, moreover, 
 very often in debt to their employers, for grain advanced for some 
 family ceremony or for necessities in times of want ; from this addi- 
 tional enthralment they could hardly ever expect to free themselves. 
 
 Mr. C. T. Longley, Collector of Salem. — Labour in the Salem dis- 
 trict was of two kinds — ordinary and agricultural. The first repre- 
 sented labour employed on tanks, roads and other public works and 
 the second, labour connected with cultivation. 
 
 Ordinary labour. — Both men, women and children of both sexes 
 (above 7 years of age) were employed on ordinary labour. Their 
 wages were as follow : — 
 
 Per diem. 
 
 ANNAS. 
 
 A man cooly ... ... ... .,, ... 2 to 4 
 
 A woman cooly ... ... ... ... ... 1 to 2 
 
 A boy or girl ... ... ... ... ... 1 to 1^ 
 
 The rates of wages varied according to the demand, but the 
 average might be set down as follows : — 
 
 Per diem. 
 
 AS. P. 
 
 A man cooly ... ... ... ... ... 2 6 
 
 A woman cooly ... ... ... ... ... 14 
 
 A boy or girl ... ... ... ... ... 10 
 
 The classes chiefly employed on ordinary labour were Vellalas, 
 Pulli^s, Pullans, Pariahs and Reddies. Muhammadans were also 
 employed as labourers, but not extensively. The classes employed 
 on ordinary labour were mostly those that had no lands or craft. 
 But the women and children of the ryots were frequently employed 
 on ordinary labour, when they had no work on their own fields. 
 When agricultural operahious were extensively carried on, especially 
 at sowing of the wet crop, labourers for ordinary labour were very 
 scarce owing to wages of agricultural labour being much higher. 
 
 Acjricultural labour. — Agricultural labour may be divided into two 
 kinds, viz., ordinary and extraordinary.
 
 Ixxxv 
 
 Ordinary agricuHuraJ labour. — Every ryot whose holding was 
 larger than he could cultivate with the assistance of members of his 
 own family was obliged to call in the assistance of labourers known 
 as pannials (panniar)i means cultivation and al, labourer). These 
 pannials were paid in two ways — 
 
 (Ist) by a monthly grain fee varying from 24 to 40 measures of 
 either cholum, cumbu or ragi, besides an annual ready money allow- 
 ance of Rs. 2 to 5. 
 
 (2ndhj) by a monthly payment in money of Rs. 2| to 4. 
 
 The first mode of payment was the one universally observed in 
 all purely agricultural villages, i.e., those which had no trade, like 
 the Cauvery villages. 
 
 Extraordinary agricultural labour. — Extraordinary agricultural 
 labour was chiefly required for irrigated cultivation. The labour 
 consisted of ploughing^ sowings weeding and harvesting. The wages 
 were high. Females as well as children were employed. Men 
 ploughed, made ridges, and levelled fields ; the children trod in leaves 
 for manure, whilst women took out the seedlings from their nursery 
 and transplanted them over the field at a distance of about two 
 inches apart. This was at the commencement of the rice cultivation 
 in September and October. A month subsequently females only were 
 employed for transplanting and weeding. They were paid from one- 
 and-a-half to two annas in ready cash. At the harvest time the 
 labourers would not receive payment in money, but demanded it in 
 grain. They were paid from 3 to 4 Madras measures per diem, two 
 annas six pies or three annas four pies at the commutation rate. 
 
 Increase in the number of labourers. — The extension of cultivation 
 and the prosecution of works of public and private enterprise had 
 to a great extent increased the number of labourers. Besides the 
 labouring classes already mentioned, there was a third class, the 
 purely cooly, who had no lands or other means of livelihood. They 
 had no houses of their own and they generally emigrated to places 
 where they could get housed as well as earn wages. They were em- 
 ployed chiefly on the Shervaroy hills, where they occupied the cooly 
 lines of the planters and were paid at the rate of a rupee for 6 days' 
 labour. 
 
 Condition of the imrely cooly class. — The condition of the purely 
 labouring classes had certainly improved during the previous 10 years. 
 They were better clad, wore some ornaments, and sought for more 
 comforts and better living. Their condition, however, depended on 
 the different castes to which they belonged. For instance, the Vel- 
 lalan was frugal and saving in the extreme. His hard-working wife 
 knew no finery and was content to wear for the whole year one, or at 
 the utmost two blue cloths. The husband lived on the cheapest 
 of dry grains and it was only at high festivals that a platter of rice 
 and a little meat were prepared. On the other hand FuUies and 
 Pullars were the very reverse, especially the latter. They were impro- 
 vident of the morrow ; " sufficient unto the day '' was their motto. 
 They spent their money as fast as they got it. They lived upon rice 
 and meat as often as they could and delighted in gay clothes and, 
 ornaments.
 
 Ixxxvi 
 
 Mr. J. F. Price, Sub-Gol/edor of Salem. — Artisans were usually- 
 paid by the day, but they sometimes did piece-work. The exception 
 was the village blacksmith who was paid sometimes in charcoal, but 
 custom in this respect varied and in all large villages this workman 
 was either paid by the job or by the day. Wodders, who did stone 
 and earth work, usually made a contract, and the chief man and his 
 gang united to do the work and divided the sum paid for it among 
 themselves. When they worked for daily hire, their charge was from 
 4 to 5 annas a day. For ordinary coolies the payment ranged from 3 
 annas for the best labourer to 9 pies for a small boy of about ten 
 years of age. Women ordinarily got one anna six pies and young 
 girls 6 pies per diem. The customary arrangement as regards farm 
 labourers was that the master gave from 3 to 4 rupees a year, from 
 3 to 4| kandagams (130 Madras measures each) of ragi, and if he was 
 a wealthy and liberal man, a couple of coarse cloths at the Pongal. 
 Boys were hired by the year, and the arrangement was that the 
 master gave them their food, a place (usually the stable) to sleep 
 in, an ordinary handkerchief for the head, a small cloth and a cumbli. 
 When Mr. Price first joined that district, the regular rate of hire of 
 farm labourers had been a pagoda for a year, and from one and-a-half 
 to three kandagams of ragi. The terms for boys had not altered, but 
 there was then a tendency to ask for a small money payment, a rupee 
 or so, in addition to food and clothing. The rates for daily coolies, 
 when he first went there, ranged from 2| annas to 6 pies for males 
 and from one anna to 4 or 5 pies for females. The wages of artisans 
 were on the same scale ; a bricklayer who claimed 12 annas a day 
 only got 9 previously and that was the charge for the best class of 
 workmen. The increase in the price of labour dated from the time of 
 the famine, when the cost of the necessaries of life of every kind was 
 so great that the Government officials had to increase the wages paid 
 by them to labourers. Since then though ragi, for instance, had fallen 
 from Rs. 26 (sic) to Rs. 2^ per kandagam, which latter was its price at 
 that time, it was impossible to reduce the rates. Coolies could get work 
 almost everywhere, and in order to be able to retain them during the 
 weeding and harvesting seasons, when the ryots paid the Government 
 rates and added to them a measure or a couple of measures of ragi a 
 day, besides food, the Government was obliged to pay the same price 
 all the year round. Mr. Price once tried to reduce the pay of the 
 coolies, and they nearly all struck and brought his road work to a 
 standstill at the most important part of the season. 
 
 There had been a marked improvement in the condition of both 
 the labouring and artisan classes during the previous 5 years. The 
 famine had given them an opportunity for increasing the rates paid 
 to them, and they had never, though there had been a considerable 
 period of cheapness and plenty, allowed these to retrograde. The 
 labourer then received three annas instead of two annas and-a-half and 
 he paid only Rs. 24 instead of Rs. 26 (sic) a kandagam for ragi, which 
 was his chief article of food. It was manifest, therefore, that if he 
 could have lived on his two annas and-a-half when ragi was sold at 
 Rs. 26 (sic) a kandagam or even Rs. 12 or 15 at which it had stood for 
 some time, he must have either saved or spent something on extra 
 articles or luxuries when he received 3 annas and spent only Rs. 2| 
 for a kandagam of ragi, which would last for some two months. His
 
 Ixxxvii 
 
 personal observation fully bore out this view. The carpenter dressed 
 better than he used to do ; occasionally he wore a laced tui"ban instead 
 of the invariable red cloth handkerchief of former days ; was sleek and 
 fat ; had often land of his own and was careless in his work. The 
 labourer too was to be seen with a decent cloth instead of a dirty rag 
 round his waist ; he occasionally went away at cropping time to sow 
 his small patch of land and returned to cooly work when there was no 
 cultivation going on- He was independent and would not be beaten 
 down in his wages ; and there were fewer beggars or persons who 
 stole from want, than there used to be. Any able-bodied man or 
 woman cooly got work, and the difficulty was not to select coolies 
 from a large number of applicants, but to get them at all. 
 
 Mr. Macgregor, Collector of Malabar. — Except in the neighbour- 
 hood of large towns, wages were paid in kind and averaged two 
 Madras measures of rice for a first-class cooly. The women and 
 children earned proportionately less. The great majority of agricul- 
 tural labourers were permanently entertained by the landowners, and 
 these were paid a measure and-a-half per diem whether they worked 
 or not. This rate of pay was very little more than enough for a bare 
 subsistence. It admitted of an occasional drink. From a report 
 drawn up by his predecessor in 1863, there was little difference per- 
 ceptible since then in the rate of wages. 
 
 There was no marked improvement in the position of the agricul- 
 tural labourers during the thirteen years he had experience of the 
 district. They were slaves in everything but name and up to no 
 very distant period had invariably been sold with the land. There 
 were abundant opportunities for this class to better themselves by 
 going to work in Wynaad, but comparatively few availed themselves 
 of this, because they preferred the freedom from anxiety which the 
 protection of a landowner afforded. 
 
 In the towns there had been a marked increase of the rate of 
 wages, which was four annas. This class was not much better off 
 than it had been previously as the price of food had also increased. 
 
 Jilr. Foster, Collector of Ooddvari. — -The ordinary labourers in the 
 Goddvari district got 3 or 4 annas a day ; they were almost entirely 
 paid in money ; before the anient was made, the daily wage of 
 common labourers was one anna and that was sufficient to maintain 
 them. The cultivating labourers were usually kept as private ser- 
 vants by the puttadars and were given food, &c., all the year round 
 and about two 'ptdties of grain at the harvest, which, if paddy, 
 would be worth about Rs. 40. Many of these labourers had of 
 late years become puttadars themselves, employing in their turn 
 hired labourers. In the Bellary district the practice of hiring 
 labourers to cultivate was not so common as in the Goddvari district ; 
 the poorer classes there had small holdings and all the members of 
 the family assisted in cultivating the land ; but in the delta taluks of 
 this district the landholder and his family seldom took any part in the 
 actual cultivation of the land ; they did not let it out so much as 
 cultivate it by their own private servants maintained all the year 
 round, so that the position of these labourers was much better in 
 Goddvari than in poorer districts ; but this was the case in the years 
 preceding 1872, after the anient was made. In the food the labour-
 
 Ixxxviii 
 
 ing classes ate and in the clothes and jewellery they wore there had 
 been a great improvement since that time. 
 
 Mr. A. J. Stuart, Sub-Collector of Eajah?nundry.^—The ordinary 
 rate of wages obtained by a labourer was 3 annas a day or Rs. 67^ 
 per annum, if he managed to find employment every day, which 
 probably was rarely possible. The price of rice then was an anna a 
 seer in Rajahmundry and 3 annas would have done little more than 
 feed 4 or 5 people. Occasional expenses, such as a shred of cloth- 
 ing for men and a common cloth for women, would have disposed of 
 any balances and there was always the toddy shop at hand if there 
 was any unusual balance. The farm labourer was paid chiefly in 
 grain ; his earnings were less than the above, but more certain, and he 
 had a master to depend upon in case of any unexpected expenses, 
 or for such outlay as was incurred in marriages or funerals ; the 
 earnings might be estimated in the delta at about 2 putties of paddy 
 worth Rs. 50. It was paid in various ways, but amounted on the 
 average to about 2 putties, just sufficient for the support of his 
 family. On the whole, by far the greatest part of the population 
 was poor and had little beyond food, clothing and shelter ; in no 
 country in the world was the taxation so high in proportion to the 
 income of the people it was raised from ; and little or no advance 
 was observable in the condition of the masses and certainly none in 
 that of the labouring classes. 
 
 Mr. H. E. Sullivan, Collector of South Arcot. — The full and inter- 
 esting account furnished by Mr. Sullivan regarding the condition of 
 the labouring classes in the South Arcot district is given below : — 
 
 As regards the present condition of the labouring class, there 
 is nob the least doubt that it has materially improved during the 
 last twenty years. It is somewhat difficult to estimate the annual 
 earnings of a labourer, as the majority are not employed on the same 
 work or remunerated in the same manner all the year round. Agri- 
 cultural labourers may be divided into two classes : those who form 
 the regular farm stafiF and who are engaged at the rate of one man per 
 plough and the occasional hands who are taken on when required. 
 
 When the first description of labourers is engaged, it is usual for 
 the employer to make him an advance of money, varying from 
 Rs. 7 to Rs. 35, which is known as the "^ Mothakadan " or first loan, 
 which binds him to the service of his master. Neither this loan 
 nor any subsequent advances, which, on the same principle, he may 
 receive from his employer, bear interest nor is repayment of the 
 capital sum demanded unless the labourer elects to quit the service. 
 This class of labourers, although they are attached to the farm under 
 the system above described, are not employed on it all the year 
 round, and during certain months of the year their services are dis- 
 pensed with, and they are at liberty to take employment elsewhere, 
 being bound, however, to come back whenever required. Whilst 
 regularly employed on the farm which is generally from June to 
 November they are paid monthly and in kind, never in money. The 
 following are the ordinary rates : — 
 
 45 Madras measures of varagu, 
 11 do. do. of ragij
 
 Ixx 
 
 XIX 
 
 or occasionally thirty-four measures of paddy are substituted for the 
 varagu. When taken on again for the harvest, which commences in 
 December^ the labourers employed receive as their remuneration 5 
 per cent, of the grain harvested. This is called calavassam, the 
 labourers receiving five kalams out of every 100 kalams got in. 
 
 The extra hands who are taken on when agricultural operations 
 are in full swing are paid daily wages, either in money or kind or 
 both. If in money, the wage is one anna per diem and two meals 
 of cunji ; if in kind two Madras measures of paddy, besides the 
 cunji. 
 
 Going back again to the permanent farm labourer or as he is 
 known in the south the "padiyaP' or " padiachy," it would not appear 
 at first sight that his lot was a very prosperous one. The value of 
 the grain which he receives as wages from June to November does 
 not exceed, even at present prices, Ks. 2 per mensem. Twenty 
 years ago, however, it did not represent a rupee, so that although 
 he receives now the same quantity as he formerly did, he is certainly 
 better off (for he cannot consume it all) than he was then. But he 
 makes a great haul at the harvest and in addition he occasionally 
 cultivates a small portion of his employer's estate on his own account. 
 He receives, moreover, at the different festivals small presents from 
 his employer, and on the occasion of a marriage or other ceremony 
 in his own family a loan to meet the necessary expenses is rarely 
 refused. It is true that this system must more or less tend to 
 prevent the labourer from ever emerging from that position, but this 
 is not universally the case. Instances not unfrequently occur of 
 these men setting up as independent farmers, although whether their 
 condition is thereby ultimately benefited may admit of question. 
 One bad season generally suffices to ruin them, and then they go 
 back contentedly to their old place. I use the expression advisedly, 
 for it is within my own tolerably varied experience that a bond of 
 union exists in India between the landholder and his labourers, which 
 prevents the latter, as a rule, from following the example of their 
 brethren at home in striking for higher wages just at the time when 
 their services are most needed. But the laws of supply and demand 
 are inexorable, and though the landholder in India is prudcmt enough 
 not to create an inconvenient precedent by raising the rate of 
 wages whenever labour is in greater request than usual, he is still 
 sufficiently alive to the requirements of the times by a judicious 
 enhancement of loans and presents during the period of pressure to 
 secure himself against the difficulties which at this moment beset the 
 farmers in England. There is, moreover, in this country a feeling of 
 sympathy between the employer and his men, which is not to be 
 found in European countries, where the latter are regarded as so 
 many machines out of which a certain amount of work is to be got, 
 and that done, the bargain is at end. A mistaken philanthropist 
 might make great capital at a public meeting in England out of the 
 figures which I have given above, but my experience leads me to 
 believe that the " padiyal " in India, with his comparatively scanty 
 wage, is better off than the farm labourer at home with his 9$. or IDs. 
 a week.
 
 xc 
 
 The wages of unskilled labour other than agricultural have 
 advanced about 25 per cent, during the past twenty years, but the 
 price of food has gone up in proportion. It is not, therefore, to this 
 that we must look for the cause of the undoubted amelioration in the 
 condition of this class of the population evinced by their dwelling 
 in better bouses, eating moi'e animal food, and indulging in other 
 luxuries (drinking, I am afraid, amongst the number) to a greater 
 extent than formerly. It is due mainly, I think, to the steady and 
 ever-increasing demand for labour throughout the year, so that the 
 man or woman who is willing to work need never want. This is 
 caused partly by the area of cultivation extending year by year, the 
 development of trade and by public and private works of utility 
 being carried out on a large scale throughout the country. In thia 
 respect the expenditure of Local Funds plays no unimportant part, 
 and those who contribute them are repaid with interest in an indirect 
 manner. In former days, within my own recollection, it was a very 
 difficult matter for the labouring classes to tide over those months of 
 the year during which agricultural operations were at a standstill. 
 Public works were few and far between, and those who wished to 
 obtain employment on them had often to travel and encamp many 
 miles away from their homes to earn sufficient to save themselves 
 from starvation. Now the work is brought up to their doors, and 
 when the demand for agricultural labour is slack, employment is 
 always to be obtained on imperial or local works. I believe this 
 Presidency to be at present in the most hopeful condition, and no 
 better evidence can, I think, be adduced in support of the position 
 than the undoubted fact that the labouring classes, by whose aid the 
 bulk of the revenue of the State is produced, are in a happy and 
 prosperous condition, although, as before observed, the figures above 
 quoted might provoke an opposite conclusion.
 
 XOl 
 
 SECTION v.— STATISTICS SHOWING THE 
 
 IMPEOVEMENT IN THE CONDITION OF THE 
 
 PEOPLE SINCE 1850. 
 
 (A.) — Population, 
 (^a) — Statement showing the population of the Madras Presidency — 000 omitted. 
 
 
 
 
 
 ^c 1 +a 
 
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 rease 
 popu] 
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 rease 
 popul 
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 •- o -- 
 
 •'" -d 
 
 Districts. 
 
 1871. 
 
 1881. 
 
 1891. 
 
 Percentage of 
 decrease of 
 tion of 188: 
 of, 1871. 
 
 Percentage of 
 the populati 
 over that of 
 
 Percentage of 
 decrease of t 
 tion of 1891 
 of 1871. 
 
 Ganjam 
 
 1,620 
 
 1,750 
 
 1,897 
 
 1610 
 
 8-4 
 
 24-80 
 
 Vizagapatam 
 
 2,159 
 
 2,481 
 
 ?,804 
 
 15-09 
 
 13-02 
 
 29-87 
 
 Godivari 
 
 ' 1,621 
 
 1,795 
 
 2,079 
 
 10-73 
 
 15-82 
 
 28-25 
 
 Kistna 
 
 
 1,452 
 
 1,548 
 
 1,855 
 
 6-62 
 
 19-83 
 
 27-75 
 
 Nellore 
 
 
 1,377 
 
 1,220 
 
 1,464 
 
 —11-37 
 
 20-00 
 
 6-31 
 
 Cuddapah 
 
 
 1,351 
 
 1,121 
 
 1,272 
 
 —17-03 
 
 13-47 
 
 — 6-21 
 
 Bellary 
 
 
 \ 1,653 
 
 1,326 
 
 1,608 
 
 — 19-77 
 
 21-26 
 
 _ 2-79 
 
 Anantapur 
 
 
 
 
 
 
 
 Kurnool 
 
 
 915 
 
 679 
 
 818 
 
 —25-79 
 
 20-47 
 
 —11-85 
 
 Madriis 
 
 
 398 
 
 406 
 
 452 
 
 2-09 
 
 11-33 
 
 13-56 
 
 Chingleput . 
 
 
 938 
 
 981 
 
 1,137 
 
 4-6 
 
 16-90 
 
 21-21 
 
 North Arcot . 
 
 
 i 2,015 
 
 1,823 
 
 2,180 
 
 —9-8 
 
 19-58 
 
 8-18 
 
 South Arcot . 
 
 
 1,756 
 
 1,816 
 
 2,163 
 
 3-36 
 
 19-10 
 
 23-17 
 
 Tan j ore 
 
 
 1,974 
 
 2,131 
 
 2,228 
 
 7-94 
 
 4-55 
 
 12-86 
 
 Trichinopoly . 
 
 
 1,201 
 
 1,215 
 
 1,373 
 
 1-22 
 
 13-00 
 
 14-32 
 
 Madura 
 
 
 1 2,267 
 
 2,169 
 
 2,608 
 
 —4-32 
 
 20-24 
 
 15-04 
 
 Tinnevelly . 
 
 
 1,694 
 
 1,700 
 
 1,916 
 
 0-34 
 
 12-70 
 
 13-10 
 
 Coimbatore . 
 
 
 1,763 
 
 1,658 
 
 2,005 
 
 —5-99 
 
 20-93 
 
 13-72 
 
 Nilgiris 
 
 
 » 75 
 
 91 
 
 100 
 
 21-33 
 
 9-89 
 
 33-33 
 
 Salem 
 
 
 1,967 
 
 1,593 
 
 1,963 
 
 —18-68 
 
 23-22 
 
 — 0-20 
 
 South Canara 
 
 918 
 
 959 
 
 1,056 
 
 4-48 
 
 10-11 
 
 15-03 
 
 Malabar 
 
 » 2,236 
 
 2,365 
 
 2,653 
 
 5-75 
 
 12-18 
 
 18-64 
 
 I 
 
 'otal . . 
 
 31,250 
 
 30,827 
 
 35,631 
 
 — 1-35 
 
 15-58 
 
 14-02 
 
 ' Inclusive of the population of the Bhadr&chalam and Rekapalle taluks transferred 
 to the Madras Presidency from the Central Provinces in 1874. 
 
 * Inclusive of the population of the South-East Wynaad transferred from Malabar 
 in 1877. 
 
 ' Exclusive of the population of the South-East Wjmaad transferred to the Nilgiris 
 in 1877. 
 
 Note. — 1. The population entered in this statement does not include the population 
 of the Sanddr, Banganapalle and the Pudukota States. 
 
 2. The percentage of increase of the population in 1891 was small for the 
 Tanjore district. But if the net loss by emigration between the 18th February 1881 
 and 26th February 1891, amounting to 97,237 persons, be added to the population, the total 
 increase comes to 9-10 per cent.
 
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 England and Wales 
 
 36-36 
 
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 Madras Presidency 
 
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 years. 
 
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 60 years and 
 upwards. 
 
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 276 
 
 6)7 
 
 108 
 
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 302 
 
 610 
 
 103 
 
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 329 
 
 691 
 
 80 
 
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 333 
 
 697 
 
 80 
 
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 342 
 
 684 
 
 69 
 
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 364 
 
 673 
 
 73 
 
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 363 
 
 677 
 
 70 
 
 United States, white population 
 
 377 
 
 679 
 
 44 
 
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 338 
 
 606 
 
 66 
 
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 424 
 
 641 
 
 36 
 
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 404 
 
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 552 
 
 39 
 44 
 
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 Madras Presidency . . ■{ 
 
 L Females .. 
 
 I 378 
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 f 379 
 
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 560 
 660 
 
 49 
 51 
 69 
 61 
 
 Note. — The particulars relating to European countries have been taken from 
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 CO 
 
 
 
 
 Eh 
 
 
 
 
 
 
 
 
 
 a "^ ^^ >, 
 
 
 Dist: 
 
 
 
 
 
 
 Gran jam . , 
 
 Vizagapatai 
 
 Godivari 
 
 Kistna 
 
 Nellore . . 
 
 Cuddapah 
 
 Bellary and 
 
 Kurnool . . 
 
 Chingleput 
 
 North Arco 
 
 South Arco 
 
 Tanjore 
 
 Trichinopol 
 
 Madura 
 
 Tinnevelly 
 
 Coimbatore 
 
 Nilgiris 
 
 Salem 
 
 
 
 
 
 
 pq 
 
 5?;
 
 XCIX 
 
 Remarks.— In comi)arinfc the figures given in the above statement for different years, the foUowing 
 facts should be borne in mind :— 
 
 1. The taluks of Cumbum, Markapur and Koilkuntla were transferred from the Cuddapah to the 
 Kurnool district in 1857-58. 
 
 2. Ninety-seven \illages wei-e transferi'ed from the Kumool to the Nellore district in 1863. 
 
 3. Forty-nine villages were transferred from the Chingleput to the Nellore district in 186;5. 
 
 4. A portion of the Sattiavedu division was transferred from the North Arcot to the Chingleput 
 district in 1860. 
 
 5. Several of the districts were surveyed since 1852-5", and the survey showed that the areas 
 entered in the old accounts were below what they ought to be. The percentage of the excess area 
 discovered by the survey to the area entered in the old accounts was as follows : — 
 
 
 
 Area iii thousands of 
 
 
 
 1 
 
 acres. 
 
 
 Districts. 
 
 Year in which the settlement | 
 was introduced. ' 
 
 
 Percentage 
 of 
 
 1 
 
 
 
 
 Old 1 
 
 By 
 
 increase. 
 
 
 i 
 
 accounts. 
 
 survey. 
 
 
 Ganjam 
 
 1878-79, 1879-80 and 1883-84 ... 
 
 281 
 
 336 
 
 20 
 
 Godavari 
 
 1862-63 and 1866-67 
 
 Not available. 
 
 
 Kistna 
 
 1866-67 and 1873-74 
 
 1,683 1 1,794 
 
 7 
 
 Nellore 
 
 1873-74 and 1874-75 
 
 910 
 
 910 
 
 
 Cuddapah 
 
 1874-75 and 1877-83 
 
 1,162 
 
 1,259 
 
 8 
 
 Kurnool 
 
 1864-6.4, 1872-73, 1874-75 and 
 1877-78. 
 
 1,122 
 
 1,226 
 
 9 
 
 China-leput 
 
 1875-76 and 1877-78 
 
 489 
 
 544 
 
 11 
 
 Jvorth .\rcot 
 
 1883-86 
 
 627 
 
 706 
 
 13 
 
 Trichinopolv 
 
 1864-65 
 
 647 
 
 764 
 
 18 
 
 Madura (3 taluks) 
 
 1885-88 
 
 503 
 
 544 
 
 8 
 
 Tinnevelly 
 
 1873-78 
 
 1,299 
 
 1,397 
 
 7 
 
 Coimbatore 
 
 1878-82 
 
 2,193 
 
 2,3.^6 
 
 7 
 
 Salem 
 
 1870-71 to 1873-74 
 
 Total ... 
 
 1,048 
 
 1,209 
 
 15 
 
 11,964 
 
 13,025 
 
 8 
 
 Applying the rates given above to the areas under cultivation in 1852-53, the correct area is found 
 to be 13,131 thousands of acres. Up to a recent period, the area under cultivation i'lcluded portions 
 of fields left waste and the extent on thisfaccount may on a rough calculation be taken to be 2 per 
 cent, of the cultivated area. The net area, after deducting the area of portions of fields lett waste, 
 under cultivation, is thus 12,967 thousands of acres, or about | of a million of acres in excess of the 
 area entered m ihe statement. 
 
 6. In the column headed " Dry " is included the area of lands irrigated by private sources of irri- 
 gation, such as wells, ic. The areas thus irrigated in each district for the years 1852-53 and 1889-tO 
 are in thousands of acres :— 
 
 Districts. 1852-53. 1889-90. 
 
 Districts. 
 
 1852-53. i 1889-00. 
 
 Ganjam 
 
 Vi/.agapatam 
 
 Godavari 
 
 Kistna 
 
 Nellore 
 
 Cuddapah. 
 
 Bellary and Aiiantnpur 
 
 Kurnool 
 
 Chingleput 
 
 21 
 
 } '» 
 
 17 
 
 46 
 
 25 
 
 3 
 
 2 
 
 2 
 
 48 
 71 
 60 
 15 
 6 
 
 North Arcot 
 
 South Arcot 
 
 Taniore 
 
 Trichinopoly 
 
 Madura 
 
 Tinnevelly 
 
 Coimbatore 
 
 Nilgiris 
 
 Salem 
 
 Total ... 
 
 3 
 2 
 42 
 31 
 6 
 9 
 
 } 175 
 
 10 
 
 105 
 54 
 2 
 39 
 92 
 89 
 
 o57 
 77 
 
 
 
 407 
 
 1,007 
 
 7. The extent of lands (in thousands of acres) irrigated under th principal systems of irrigation 
 ate as under i — 
 
 ! 
 Irrigation systems. 
 
 1 
 
 Old 
 irrigation. 
 
 ! 
 
 1888-89. 
 
 Percentage 
 
 of 
 
 increase. 
 
 Godavari delta system 
 
 Kistna delta system 
 
 Penner anient 
 
 Sangam project 
 
 Cauvery delta 
 
 Srivaikuntham anient 
 
 Palar anient 
 
 j Chembrambakam tank 
 
 1 Kumool-Cuddapah canal 
 
 1 Pelandorai anient 
 
 ; Madras water-supply and irrigation pi'oject 
 
 Tota ... 
 
 28 
 19 
 28 
 41 
 622 
 13 
 37 
 2 
 
 "" 1 
 
 4 
 
 302 
 
 246 
 
 48 
 
 45 
 
 790 
 
 21 
 
 59 
 
 11 
 
 85 
 
 4 
 
 6 
 
 978 
 1,195 
 72 
 9 
 27 
 61 
 60 
 450 
 
 "300 
 50 
 
 795 
 
 1,567 
 
 97
 
 (0.) — Prices. 
 
 (a) — Table showing the prices of second sort rice in terms of seers of 80 tolas 
 per rupee {averages for quinquennial periods excluding famine years). 
 
 Districts. 
 
 
 
 Average 
 
 of 5 years from 
 
 
 
 1809 
 
 1819 
 
 1828 
 
 1849 
 
 1861 
 
 1870 
 
 1883-84 
 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 
 1813. 
 
 1823. 
 
 1832. 
 
 1853. 
 
 1866. 
 
 1874. 
 
 1887-88. 
 
 1. Ganjam 
 
 43-9 
 
 39-5 
 
 491 
 
 541 
 
 18-3 
 
 23-9 
 
 17-2 
 
 2. Vizagapatam 
 
 35-6 
 
 32-4 
 
 41-4 
 
 46-8 
 
 15-7 
 
 17-3 
 
 15-0 
 
 3. God&vari (Eajah- 
 
 
 
 
 
 
 
 
 mundry) 
 
 26-6 
 
 25-8 
 
 34-2 
 
 39-7 
 
 16-9 
 
 20-0 
 
 15-4 
 
 4. Kistna (Masuli- 
 
 
 
 
 
 
 
 
 patam) 
 Guntdr 
 
 21-0 
 20-5 
 
 231 
 19-4 
 
 31-3 
 25-6 
 
 29-7 \ 
 .. 1 
 
 13-6 
 
 15-9 
 
 14-7 
 
 6. Nellore 
 
 22-1 
 
 24-7 
 
 28-6 
 
 35-0 
 
 13-8 
 
 17-6 
 
 15-0 
 
 6. Cuddapah .. 
 
 , . 
 
 19-6 
 
 241 
 
 30-2 
 
 10-8 
 
 16-0 
 
 15-3 
 
 7. Anantapur. . 
 
 8. Bellary .. 
 
 } 22-2 
 
 20-1 
 
 25-3 
 
 31-6 
 
 110 
 
 15-6 
 
 / 15-2 
 \ 13-6 
 
 9. Kurnool 
 
 , , 
 
 
 
 27-9 
 
 111 
 
 13-7 
 
 13-3 
 
 10. Madras 
 
 11. Chingleput 
 
 } 22-6 
 
 / 26-6 
 \ 26-4 
 
 } 26-3 
 
 32-4 
 
 13-3 
 
 / 151 
 \ 17-6 
 
 14-1 
 16-2 
 
 12. North Arcot 
 
 22-1 
 
 21-4 
 
 21-9 
 
 39-8 
 
 13-7 
 
 18'8 
 
 16-3 
 
 13. South Arcot 
 
 22-9 
 
 25-7 
 
 26-2 
 
 34-5 
 
 141 
 
 18-5 
 
 16-2 
 
 14. Tanjore 
 
 28-9 
 
 31-3 
 
 31-2 
 
 38-7 
 
 14-8 
 
 16-9 
 
 160 
 
 15. Trichinopoly 
 
 28-6 
 
 29-5 
 
 30-3 
 
 35-3 
 
 12-8 
 
 16-5 
 
 14-9 
 
 16. Madura 
 
 26-4 
 
 27-6 
 
 26-1 
 
 30-4 
 
 11-6 
 
 14-5 
 
 150 
 
 17. Tinnevelly 
 
 31-4 
 
 25-7 
 
 28-4 
 
 28-1 
 
 11-5 
 
 131 
 
 13-4 
 
 18. Coimbatore 
 
 2£-4 
 
 22-5 
 
 24-7 
 
 31-8 
 
 11-2 
 
 14-3 
 
 14-7 
 
 19. Nilgiris 
 
 . . 
 
 
 
 
 , , 
 
 10-2 
 
 ■ 11-8 
 
 20. Salem 
 
 24-1 
 
 24-5 
 
 27-2 
 
 350 
 
 11-4 
 
 170 
 
 16-7 
 
 21. South Canara 
 
 24-6 
 
 26-2 
 
 30-0 
 
 30-7 
 
 13-8 
 
 14-7 
 
 14-6 
 
 22. Malabar . . 
 Average for the Presi- 
 
 43-6 
 
 30-1 
 
 36-6 
 
 31-6 
 
 12-3 
 
 13-7 
 
 14-1 
 
 
 
 
 
 
 
 
 dency 
 Index numbers repre- 
 
 27-2 
 
 26-0 
 
 29-9 
 
 34-9 
 
 13-2 
 
 16-1 
 
 14-9 
 
 
 
 
 
 
 
 senting average 
 
 
 
 
 
 
 
 
 prices, taking the 
 
 
 
 
 
 
 
 
 average for the years 
 
 
 
 
 
 
 
 
 1849 to 1853 = 100. 
 
 128 
 
 134 
 
 117 
 
 100 
 
 264 
 
 216 
 
 234
 
 61 
 
 (b) — Table showing the prices of cholum in terms of seers of 80 tolas per rupee. 
 
 Districts. 
 
 
 
 Average 
 
 of 5 years from 
 
 
 
 1809 
 
 1819 
 
 1828 
 
 1849 
 
 1861 
 
 1870 
 
 1883-84 
 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 
 1813. 
 
 1823. 
 
 1832. 
 
 1853. 
 
 1865. 
 
 1874. 
 
 1887-88. 
 
 1 . Ganjam 
 
 ' 
 
 
 
 
 28-5 
 
 301 
 
 27-8 
 
 2 . Vizagapatam 
 
 "45-5 
 
 40-6 
 
 56 • 6 
 
 58-7 
 
 28-3 
 
 30-1 
 
 26-5 
 
 3. God&vari (Eajah- 
 
 
 
 
 
 
 
 
 mundry) 
 
 40-9 
 
 370 
 
 50-2 
 
 62-0 
 
 27-8 
 
 33-9 
 
 26-5 
 
 4. Kistna (Masuli- 
 
 
 
 
 
 
 
 
 patam) . . 
 GuDt6r 
 
 31-6 
 40-8 
 
 25-7 
 27-4 
 
 371 \ 
 33-2/ 
 
 38-4 
 
 23-1 
 
 24-1 
 
 22 
 
 6 
 
 5. Nellore 
 
 33-2 
 
 351 
 
 43-3 
 
 49-2 
 
 23-5 
 
 28-3 
 
 24 
 
 8 
 
 6. Cuddapah . . 
 
 39-6 
 
 29-4 
 
 42-6 
 
 43-7 
 
 18-1 
 
 27-2 
 
 28 
 
 9 
 
 7. Anantapur. . 
 
 8. Be]lary 
 
 36-1 
 
 32-1 
 
 51 1 
 
 45-3 
 
 18-6 
 
 30-2 
 
 j 30 
 ( 30 
 
 8 
 
 
 9. Kurnool . . 
 
 
 
 
 47-1 
 
 19-4 
 
 26-5 
 
 28 
 
 8 
 
 10. Madras 
 
 11. Chingleput 
 
 I 30-9 
 
 / 30o 
 \ 32-7 
 
 } 35-3 
 
 44-6 
 
 211 
 
 ( 241 
 \ 22-6 
 
 21 
 22 
 
 8 
 8 
 
 12. North Arcot 
 
 330 
 
 31-2 
 
 36-9 
 
 52-3 
 
 21-1 
 
 31-3 
 
 28 
 
 fi 
 
 13. South Axcot 
 
 331 
 
 38-4 
 
 42-3 
 
 49-8 
 
 26-6 
 
 36-2 
 
 31 
 
 i) 
 
 14. Tanjore 
 
 30-8 
 
 32-7 
 
 38-3 
 
 48-2 
 
 25'0 
 
 28-3 
 
 26 
 
 7 
 
 16. Trichinopoly 
 
 38-3 
 
 37-2 
 
 36-8 
 
 52-2 
 
 22-6 
 
 32-7 
 
 40 
 
 G 
 
 16. Madura 
 
 50-5 
 
 51-6 
 
 55-1 
 
 73-9 
 
 21-9 
 
 33-0 
 
 32 
 
 7 
 
 17. Tinnevelly 
 
 
 511 
 
 56-6 
 
 51-2 
 
 181 
 
 24-5 
 
 25 
 
 
 
 18. Coimbatorc 
 
 49-6 
 
 40-3 
 
 44-5 
 
 54-8 
 
 19-7 
 
 24-8 
 
 23 
 
 8 
 
 19. Nilgiris 
 
 
 
 
 
 
 18-3 
 
 20 
 
 9 
 
 20. Salem 
 
 45-8 
 
 50-7 
 
 61-9 
 
 57-7 
 
 24-3 
 
 33-4 
 
 28-7 
 
 21. South Canara 
 
 
 , , 
 
 
 
 
 .. 
 
 
 22. Malabar .. 
 Average for the Presi- 
 
 , 
 
 
 '1 
 
 •• 
 
 
 
 24 
 
 3 
 
 
 
 
 
 
 
 
 dency 
 Index numbers repre- 
 
 38-6 
 
 36-6 
 
 44-4 
 
 51-8 
 
 22-8 
 
 28-4 
 
 27-4 
 
 
 
 
 
 
 
 
 senting average 
 
 
 
 
 
 
 
 
 prices, taking the 
 
 
 
 
 
 
 
 
 average for the years 
 
 
 
 
 
 
 
 
 1849 to 1853 = 100. 
 
 135 
 
 141 
 
 118 
 
 100 
 
 227 
 
 182 
 
 189
 
 ou 
 
 {c)-^Tahle sJwu-infi the jjrices ofragi vi terms of aeers oj 80 tolas per rupee. 
 
 Districts. 
 
 Average of 5 years from 
 
 1809 
 
 , 1819 
 
 1828 
 
 1 
 
 1849 
 
 1861 
 
 1870 
 
 1883-84 
 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 
 1813. 
 
 1 1823. 
 
 1 
 
 1832. 
 
 1853. 
 
 1865. 
 
 1874. 
 
 1887-88 
 
 1. Granjam 
 
 48-8 
 
 1 
 
 52-6 
 
 67-2 
 
 75-5 
 
 32-8 
 
 35-4 
 
 31-8 
 
 2. Vizagapatam 
 
 49-2 
 
 46-0 
 
 63-6 
 
 711 
 
 28-8 
 
 311 
 
 28-7 
 
 3. Goddvari (Rajah- 
 
 1 
 
 
 
 1 
 
 
 
 
 mundry) 
 
 j 38-4 
 
 38-1 
 
 54 'o 
 
 70-6 
 
 29-4 
 
 35-7 
 
 29-9 
 
 4. Kistna (Masuli- 
 
 j 
 
 
 
 
 
 
 
 patam) . . 
 Guntur 
 
 34-1 
 47-3 
 
 35-0 
 32-8 
 
 470 
 41-7 
 
 } 47-5 
 
 25-8 
 
 29-9 
 
 29-7 
 
 5. Nellore 
 
 33-7 
 
 38-5 
 
 46-6 
 
 51-3 
 
 25-7 
 
 32-0 
 
 290 
 
 6. Cuddapah . . . . 
 
 35-2 
 
 30-6 
 
 43-6 
 
 . 46-3 
 
 19-1 
 
 29-9 
 
 32-9 
 
 7 Anantapur 
 8. Bellary 
 
 ) 45-3 
 
 35-4 
 
 53-4 
 
 1 50-2 
 
 20-3 
 
 350 
 
 ( 33-7 
 \ 34-4 
 
 9. Kurnool 
 
 
 
 
 28-7 
 
 20-2 
 
 27-8 
 
 29-3 
 
 10. Madras 
 
 1 1 . Chingleput 
 
 j. 31-.5 
 
 301 
 
 320 
 
 ! 
 
 1 41-8 
 
 20-1 
 
 28-5 
 
 { 27-2 
 !\ 27-3 
 
 12. North Arcot 
 
 32-2 
 
 1 30-7 
 
 34-3 
 
 53-9 
 
 22-4 
 
 34-1 
 
 31-6 
 
 13. South Arcot 
 
 37-3 
 
 39-7 
 
 44-2 
 
 491 
 
 25-6 
 
 34-7 
 
 30-3 
 
 14. Tanjore 
 
 35-0 
 
 1 43-3 
 
 52-0 
 
 63-9 
 
 27-9 
 
 33-0 
 
 29-2 
 
 15. Trichinopoly 
 
 40-5 
 
 39-0 
 
 48-7 
 
 ;58-4 
 
 24-6 
 
 33-5 
 
 30-3 
 
 16. Madura 
 
 450 
 
 48-3 
 
 49-6 
 
 ,65-5 
 
 22-5 
 
 31-7 
 
 30-7 ! 
 
 17. Tinnevelly 
 
 64-9 
 
 50-4 
 
 57-5 
 
 54-8 
 
 191 
 
 25-8 
 
 27-0 : 
 
 18. Coimtatore 
 
 53-4 
 
 44-3 
 
 50-8 
 
 '63-6 
 
 21-9 
 
 31-1 
 
 29-1 •; 
 
 19. Nilgiris 
 
 
 
 
 , , 
 
 , , 
 
 21-0 
 
 22-0 
 
 20. Salem 
 
 5b-5 
 
 471 
 
 65 
 
 62-7 
 
 25-4 
 
 37-9 
 
 31-9 1 
 
 21. South Canara 
 
 33-5 
 
 36-4 
 
 46-0 
 
 491 
 
 19-0 
 
 24-2 
 
 20-6 ' 
 
 22. Malabar .. 
 Average for the Presi- 
 
 
 
 
 ! 
 
 '• 
 
 •• 
 
 23-4 1 
 
 
 
 
 
 dency 
 Index numbers repre- 
 
 420 
 
 39-9 
 
 49-3 
 
 55-8 1 
 
 24-0 
 
 311 
 
 291 
 
 
 
 
 
 
 
 
 senting average 
 
 
 
 
 
 
 
 
 prices, taking the 
 
 
 
 
 
 
 
 
 average for the vears 
 
 
 
 
 1 
 
 
 
 
 1849 to 1853 = 100. 
 
 133 
 
 141 
 
 114 
 
 100 
 
 i 
 
 233 
 
 180 
 
 192
 
 OUl 
 
 (d) — Table showing the prices of cumhu in terms of seers 0/8O tolas per rupee. 
 
 Districts. 
 
 
 
 Average 
 
 of 5 years from 
 
 
 
 1809 
 
 1819 
 
 1828 
 
 1849 
 
 1861 
 
 1870 
 
 1883-84 
 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 to 
 
 
 1813. 
 
 1823. 
 
 1832. 
 
 1853. 
 
 1865. 1 
 1 
 
 1874. 
 
 1887-88. 
 
 1 1 . Ganjam 
 
 
 
 
 
 31-8 
 
 310 
 
 33-6 
 
 2. Vizagapatam 
 
 50-8 
 
 44-8 
 
 '64 -5 
 
 73-4 
 
 29-7 
 
 31-5 
 
 301 
 
 3. God4vari (Rajah- 
 
 
 
 
 
 
 
 
 j munday) 
 
 59-1 
 
 431 
 
 61-5 
 
 81-7 
 
 32-7 
 
 37-4 
 
 29-2 
 
 1 4. Kistna ^(Masuli- 
 
 
 
 
 
 
 
 
 1 patam) 
 j Guntdr 
 
 370 
 43-3 
 
 31-5 
 31-2 
 
 49-9 
 37-0 
 
 1 44-0 
 
 22-8 
 
 25-6 
 
 23-2 
 
 1 5. Nellore 
 
 
 
 
 411 
 
 241 
 
 27-6 
 
 24-2 
 
 6. Cuddapah . . 
 
 34 1 
 
 *2*8-5 
 
 41-5 
 
 41-9 
 
 17-9 
 
 27-6 
 
 29-6 
 
 7. Anantapm-. . 
 
 8. Bellary .. 
 
 ' 38-1 
 
 32-2 
 
 48-6 
 
 410 
 
 17-4 
 
 26-7 
 
 f 27-7 
 \ 25-8 
 
 9. Kuinool . . 
 
 
 
 
 41-1 
 
 17-7 
 
 24-0 
 
 24-9 
 
 10. Madras 
 
 11. Chingleput 
 
 } 37-9 
 
 ( V6-2 
 [ 37-5 
 
 j 39-2 
 
 46-3 
 
 20-7 
 
 ( 24-8 
 \ 24-2 
 
 23-4 
 21^ 
 
 12. North Arcot 
 
 32-4 
 
 31-8 
 
 360 
 
 50-9 
 
 20-8 
 
 31-2 
 
 270 
 
 1 13. South Arcot 
 
 34-7 
 
 39-2 
 
 41-9 
 
 46-7 
 
 24-9 
 
 32-7 
 
 29-5 
 
 1 14. Tanjorc 
 
 37-9 
 
 43-2 
 
 55-5 
 
 68-3 
 
 26-1 
 
 32-1 
 
 26-7 
 
 15. Trichinopoly 
 
 38-8 
 
 38-4 
 
 45-6 
 
 49-2 
 
 231 
 
 32-2 
 
 27-5 
 
 ' IG. Madura 
 
 47-6 
 
 45-5 
 
 48-8 
 
 62-2 
 
 23-1 
 
 29-6 
 
 28-6 
 
 1 7 . Tinnevelly 
 
 57-2 
 
 43-8 
 
 48-8 
 
 45-6 
 
 17-5 
 
 21-4 
 
 22-8 
 
 18. Coimbatore 
 
 50-4 
 
 41-8 
 
 54-1 
 
 63-9 
 
 22-9 
 
 29-0 
 
 27-9 
 
 19. Nilgiris 
 
 
 
 ,, 
 
 
 
 19-3 
 
 17-8 
 
 \ 20. Salem 
 
 43-8 
 
 ibo 
 
 5*2-3 
 
 59-3 
 
 2'5'3 
 
 35-1 
 
 27-7 
 
 21. South Canara 
 
 
 
 
 
 
 
 
 1 2'2. Malabar . . 
 
 \ Average for the Presi- 
 
 •• 
 
 
 •• 
 
 •• 
 
 
 
 
 
 
 
 
 
 
 
 dency 
 
 4 2-9 
 
 38-6 
 
 48-3 
 
 530 
 
 23-4 
 
 28-6 
 
 26-4 
 
 Index numbers repre- 
 
 
 
 
 
 
 
 
 i senting average 
 
 
 
 
 
 
 
 
 prices, taking the 
 
 
 
 
 
 
 
 
 average for the years 
 
 
 
 
 
 
 
 
 1849 to 1853 = 100. 
 
 123 
 
 137 
 
 110 
 
 100 
 
 227 
 
 185 
 
 200
 
 orv 
 
 (e) — Statement showing the number of padies of paddy sold for a rupee at Palghdt 
 for a number of years compiled from the accottnts preserved in the family 
 of a rich landlord in Malabar. 
 
 Years. 
 
 No. of 
 padies. 
 
 Years. 
 
 No. of 
 padies. 
 
 Years. 
 
 No. of 
 padies. 
 
 1820 .. 
 
 . . i 77 
 
 1844 .. 
 
 59 
 
 1868 .. 
 
 21 
 
 1821 .. 
 
 79 
 
 1845 .. 
 
 57 
 
 1869 .. 
 
 22 
 
 1822 .. 
 
 77 
 
 1846 .. 
 
 59 
 
 1870 .. 
 
 22 
 
 1823 . . 
 
 ..i 77 
 
 1847 .. 
 
 . 58 
 
 1871 .. 
 
 24 
 
 1824 . . 
 
 ..1 77 
 
 1848 .. 
 
 59 
 
 1872 .. 
 
 25 
 
 1825 .. 
 
 ..1 80 
 
 1849 .. 
 
 63 
 
 1873 .. 
 
 24 
 
 1826 .. 
 
 .. t 77 
 
 1850 .. 
 
 61 
 
 1874 .. 
 
 23 
 
 1827 .. 
 
 . 1 80 
 
 1851 .. 
 
 60 
 
 1875 .. 
 
 22 
 
 1828 .. 
 
 .. ' 80 
 
 1852 .. 
 
 57 
 
 1876 ., 
 
 21 
 
 1829 . . 
 
 .. . 79 
 
 1853 . . 
 
 55 
 
 1877 .. 
 
 10 
 
 1830 .. 
 
 81 
 
 1854 .. 
 
 32 
 
 1878 .. 
 
 13 
 
 1831 .. 
 
 .. • 75 
 
 1855 . . 
 
 25 
 
 1879 .. 
 
 17 
 
 1832 . . 
 
 77 
 
 1856 .. 
 
 31 
 
 1880 .. 
 
 20 
 
 1833 . . 
 
 ..i 79 
 
 1857 .. 
 
 30 
 
 1881 .. 
 
 21 
 
 1834 . . 
 
 .. 1 79 
 
 1858 . . 
 
 29 
 
 1882 .. 
 
 •20 
 
 1835 .. 
 
 .., 76 
 
 1859 .. 
 
 22 
 
 1883 .. 
 
 26 
 
 1836 .. 
 
 75 
 
 1860 .. 
 
 22 
 
 
 
 1837 .. 
 
 75 
 
 1861 .. 
 
 20 
 
 
 i 
 
 1838 .. 
 
 . . i 65 
 
 1862 . . 
 
 20 
 
 
 
 1839 .. 
 
 70 
 
 1863 .. 
 
 21 
 
 
 
 1840 . . 
 
 .. ; 71 
 
 1864 .. 
 
 ! 17 
 
 
 . , 
 
 1841 .. 
 
 .. ' 70 
 
 1865 . . 
 
 19 
 
 
 
 .1842 .. 
 
 68 
 
 1866 .. 
 
 15 
 
 1890 '.". 
 
 16 
 
 1843 . . 
 
 65 
 
 1867 .. 
 
 21 
 
 
 
 (f) — statement showing the prices of certain articles of food in 1853 as compared 
 with their current prices at Palghdt {compiled from the household accounts 
 kept by a large landholder in Malabar). 
 
 
 
 i'RlCE IN 
 
 
 Percentage 
 
 Articles. Quantitj-. 
 
 
 
 
 
 of increase 
 
 1853. 
 
 1891. 1 
 
 or decrease. 
 
 
 
 RS. A. 
 
 P. 
 
 RS. A. 
 
 p. ' 
 
 
 Rice 
 
 430 parahs | 
 or 2,866| padies. 
 
 153 9 
 
 2 
 
 430 
 
 ' 
 
 -f 180 
 
 Plantain fruits 
 
 20,000 No. 
 
 28 9 
 
 2 
 
 50 
 
 
 
 -f 79 
 
 Green plantains 
 
 12,005 „ 
 
 16 1 
 
 2 
 
 24 
 
 4 
 
 + 50 
 
 Brinjals 
 
 5,000 „ 
 
 5 11 
 
 6 
 
 12 8 
 
 
 
 -j- 90 
 
 Cocoanuts 
 
 1,261 „ 
 
 25 4 
 
 
 
 37 12 
 
 
 
 -1- 50 
 
 Cocoanut.oil . . 
 
 133^padiee. 
 
 39 2 
 
 4 
 
 70 
 
 
 
 + 78 
 
 Gingelly-oil 
 
 6f „ 
 
 1 
 
 
 
 3 14 
 
 3 
 
 + 289 
 
 Lamp-oil 
 
 33i „ 
 
 5 9 
 
 2 
 
 16 4 
 
 
 
 -j- 191 
 
 Sugar-candy . . 
 
 12^ lb. 
 
 1 3 
 
 6 
 
 14 
 
 
 
 — 28 
 
 Green-gram 
 
 21^ padies. 
 
 1 2 
 
 4 
 
 3 4 
 
 
 
 -4- 184 
 
 White pea 
 
 33i „ 
 
 1 12 
 
 7 
 
 5 
 
 
 
 -f 180 
 
 Red-gram 
 
 22 
 
 1 2 
 
 4 
 
 3 2 
 
 4 
 
 -h 176 
 
 Horse-gram 
 
 2 
 
 1 
 
 2 
 
 4 
 
 
 
 -f 243 
 
 Salt 
 
 100 
 
 4 5 
 
 10 
 
 18 12 
 
 
 
 -^ 329 
 
 Pepper 
 
 50 lb. 
 
 2 
 
 
 
 14 
 
 
 
 -'r 600 
 
 Mustard 
 
 1 7 i- padies. 
 
 1 4 
 
 7 
 
 3 9 
 
 9 
 
 + 180 
 
 Turmeric 
 
 ^ ,. 
 
 13 
 
 9 
 
 1 4 
 
 
 
 + 46 
 
 Dry chillies 
 
 ■iO 
 
 13 
 
 9 
 
 1 12 
 
 
 
 -f 103 
 
 Curd 
 
 773^ „ 
 
 1 24 13 
 
 9 
 
 33 2 
 
 4 
 
 ■Jf 33 
 
 Milk 
 
 173^ „ 
 
 1 5 11 
 
 5 
 
 32 8 
 
 
 
 + 468 
 
 Ghee 
 
 10 
 
 4 4 
 
 7 
 
 15 
 
 
 
 -j- 250 
 
 Betel-leaves 
 
 3, 750 bundles. 
 
 24 
 
 
 
 37 8 
 
 
 
 -f 66 
 
 Areca-nut 
 
 225 lb. 
 
 31 11 
 
 5 
 
 63 
 
 
 
 4- 60 
 
 Tobacco 
 
 50 „ 
 
 1 2 2 
 
 11 
 
 10 
 
 
 
 4- 358 
 
 Note. — A padi is a measure of capacity containing 130 tolas of rice. 
 A parah = 6f Macleod seers containing 128 tolas of rice each,
 
 cY 
 
 (g) — Statement showing the prices of different articles of food, 8fc., at Siilur 
 {a large village 7 miles from Coimhatore) compiled from the village accounts 
 preserved by an old Kurnam or Village Accountant in the Coimhatore 
 District. 
 
 Articles. 
 
 Years. 
 
 Quantity. 
 
 Price. 
 
 Rice 
 
 Cholum . . 
 
 Ragi 
 Horse-gram 
 
 Bengal-gram 
 
 Tobacco . , 
 DhoU or redgram 
 
 Jaggery 
 
 Gingelly-seed . . 
 
 Gingelly-oil 
 
 Castor-oil 
 
 Cotton 
 
 820-21 
 832-33 
 846-47 
 851-62 
 853-54 
 854-55 
 888-89 
 
 820-21 
 
 829-30 
 834-35 
 840-41 
 846-46 
 846-47 
 865-56 
 888-89 
 
 847-48 
 856-57 ' 
 888-89 
 
 845-46 
 847-48 
 888-89 
 
 843-44 
 853-54 
 862 
 888-89 
 
 822-23 
 832-33 
 888-89 
 
 851-52 
 888-89 
 
 834-35 
 839-40 
 841-42 
 888-89 
 
 853-54 
 888-89 
 
 851-52 
 888-89 
 
 851-52 
 
 888-89 
 
 822-23 
 
 834-35 
 
 840-41 
 852-53 
 853-54 
 862-63 
 888-89 
 
 13 Madras measures 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 
 13 vallams or 26 Madras 
 measures. 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 
 33 Madras measures 
 Do. 
 Do. 
 
 32 Madras measures 
 Do. 
 Do. 
 
 16 Madras measures 
 Do. 
 Do. 
 Do. 
 
 One maund 
 Do. 
 Do. 
 
 18f Madras measures 
 Do. 
 
 One maund 
 Do. 
 Do. 
 Do. 
 
 16 Madras measures 
 Do. 
 
 One small podi . . 
 Do. 
 
 One small podi . . 
 Do. 
 
 One maund 
 
 Do. 
 
 Do. 
 Do. 
 Do. 
 Do. 
 Do. 
 
 R8. A. P. 
 
 1 
 
 11 7 
 
 1 1 4 
 11 7 
 
 13 
 
 1 2 6 
 
 2 2 8 
 
 1 
 
 1 
 
 5 
 14 
 6 
 6 
 12 
 
 13 
 
 1 10 
 
 
 
 1 
 1 
 
 1 
 
 13 6 
 
 2 
 
 1 
 
 1 5 4 
 
 2 14 6 
 2 
 
 8 
 
 8 
 2 
 
 1 
 
 2 10 
 
 14 
 
 11 
 
 9 7 
 
 1 
 
 1 
 
 2 
 
 11 2 
 
 6 6 
 
 too 8 
 
 12 
 
 10 
 
 8 
 
 1 6 6 
 1 9 7 
 
 (Famine year).
 
 CVl 
 
 (k) — Statement shoiving the prices of food-grains at certain stations in the 
 Coimhatore district, obtained from certain old cadjan accounts kept by 
 merchants and landholders. 
 
 Grains. 
 
 Quantity. 
 
 Years. 
 
 Price. 
 
 Paddy 
 
 Paddy 
 
 Cholum 
 
 Ragi 
 
 Cholum 
 
 Karur. 
 
 One kalam (36 Madras 
 measures). 
 
 1830-31, 
 
 year. 
 1835-36 
 1890 . 
 
 a famine 
 
 Dhdrapuram 
 51 Madras measures 
 48 do. 
 
 54 do. 
 
 Prior to 1840 
 1888 
 
 Prior to 1840 
 1888 
 
 Prior to 1840 
 1888 
 
 Palladam. 
 
 One podi (230 Madras 
 measures). 
 
 One podi 
 
 1837-38 
 
 1838-39 
 1839-40 
 1888-89 
 1837-38 
 1888-89 
 
 RS. A. P. 
 
 12 
 
 8 
 2 10 7 
 
 1 
 
 3 7 10 
 
 1 
 
 1 12 7 
 
 1 
 
 2 4 
 
 5 
 
 6 
 6 
 
 14 
 5 
 
 14 
 
 (i) — Statement showing the prices of articles of food, ^c, in 1890 as compared 
 tvith those about 1800 in the villag>i of Singdnallur (5 miles from 
 Coimhatore) compiled from the accounts preserved hy the Eurnam or 
 Accountant oj the village. 
 
 Articles. 
 
 Quantity. 
 
 Price in 1800. 
 
 Price in 1890. 
 
 
 
 R8. 
 
 A. 
 
 p. 
 
 RS. A. p. 
 
 Paddy 
 
 1 salagai or 60 measures 
 of 140 Ks. weight. 
 
 1 
 
 7 
 
 6 
 
 5 
 
 Cholum 
 
 Do. 
 
 1 
 
 1 
 
 7 
 
 5 
 
 Cumbu 
 
 
 Do. 
 
 1 
 
 1 
 
 7 
 
 4 8 
 
 Eagi .. 
 
 
 Do. 
 
 1 
 
 1 
 
 / 
 
 4 8 
 
 Horse-gram . 
 
 
 Do. 
 
 1 
 
 1 
 
 7 
 
 5 
 
 Ghee . . 
 
 
 1 podi 
 
 
 
 8 
 
 
 
 1 4 
 
 Drv chillies . 
 
 
 1 2 measures 
 
 
 
 3 
 
 
 
 2 
 
 Tobacco 
 
 
 1 bundle, 200 Rs. weight. 
 
 
 
 2 
 
 
 
 8 
 
 Cotton 
 
 
 1 maund . . 
 
 
 
 
 
 9 
 
 1 
 
 Gingelly-oil . 
 
 
 I measure 
 
 
 
 4 
 
 
 
 10 8 
 
 Lamp-oil 
 
 
 Do. 
 
 
 
 4 
 
 
 
 13 4 
 
 Brass 
 
 
 1 seer or 24 Rs. weight. 
 
 
 
 8 
 
 
 
 5 
 
 Copper 
 
 
 Do. 
 
 
 
 10 
 
 
 
 6 
 
 Lead 
 
 
 Do. 
 
 
 
 4 
 
 
 
 8 
 
 Bullocks 
 
 
 Each 
 
 20 
 to 25 
 
 
 
 
 
 
 
 70 
 to 80 
 
 Sheep and goats 
 
 Do 1 
 
 
 to 1 
 
 12 
 
 4 
 
 
 
 
 5 
 
 to 7
 
 cvu 
 
 (j) — Statement showing the mahanum prices of paddy per Tanjore kalarn (24 
 Madras Measures) for a series of years in the Tanjore District. 
 
 Years, Price. 
 
 Years. 
 
 Price. 
 
 Years. 
 
 Price. 
 
 
 K8. A. P. 
 
 
 HS. A. V. 
 
 
 RS. A. p. 
 
 1823 
 
 13 6 
 
 1844 
 
 8 4 
 
 1865 
 
 1 7 9 
 
 1824 
 
 13 8 
 
 1845 
 
 11 2 
 
 1866 
 
 1 8 4 
 
 1825 
 
 8 7 
 
 1846 
 
 10 5 
 
 1867 
 
 1 4 
 
 1826 
 
 . ! 5 11 
 
 1847 
 
 7 4 
 
 1868 
 
 1 4 6 
 
 1827 
 
 . 6 9 
 
 1848 
 
 6 2 
 
 1869 
 
 1 4 
 
 1828 
 
 . 1 9 8 
 
 1849 
 
 7 1 
 
 1870 
 
 12 9 
 
 1829 
 
 . ! 8 
 
 1850 
 
 7 3 
 
 1871 
 
 1 6 
 
 1830 
 
 7 4 
 
 1851 
 
 7 4 
 
 1872 
 
 15 1 
 
 1831 
 
 . 1 7 3 
 
 1852 
 
 7 7 
 
 1873 
 
 1 3 5 
 
 1832 
 
 . ! 10 
 
 1853 
 
 12 10 
 
 1874 
 
 1 1 
 
 1833 
 
 12 
 
 1854 
 
 10 6 
 
 1875 
 
 1 7 
 
 1834 
 
 . : 8 7 
 
 1855 
 
 12 10 
 
 1876 
 
 1 15 11 
 
 1835 
 
 J 7 4 
 
 1856 
 
 10 4 
 
 1877 
 
 1 12 5 
 
 1836 
 
 
 11 9 
 
 1857 
 
 1 3 
 
 1878 
 
 1 12 10 
 
 1837 
 
 
 8 6 
 
 1858 
 
 1 4 8 
 
 ■1879 
 
 1 1 5 
 
 1838 
 
 
 8 10 
 
 1859 
 
 12 4 
 
 1880 
 
 1 7 
 
 1839 
 
 . 
 
 8 5 
 
 1860 
 
 1 1 
 
 1881 
 
 13 8 
 
 1840 
 
 
 6 3 
 
 1861 
 
 1 1 10 
 
 1882 
 
 13 3 
 
 1841 
 
 '. 4 4 
 
 1862 
 
 13 10 
 
 1883 
 
 15 3 
 
 1842 
 
 6 1 
 
 1863 
 
 1 3 4 
 
 1884 
 
 1 5 
 
 1843 
 
 8 
 
 1864 
 
 1 6 1 
 
 
 
 ■ The mode of calculating the average current selling price for each mahanum is as 
 follows: — Paddy grown in Tanjore consists oi two main species — kar, the early crop, 
 and pasanura, the later crop ; the cultivation of kar constitutes about one-fifth of the 
 entire wet cultivation of the Tanjore delta and the practice is therefore to make up the 
 general average by taking one-fifth of the average price of kar and four-fifths of that of 
 pasanum. The averages are struck from actual sales in villages belonging to each 
 mahanum; for kar from 1st November to 31st January and for pasanum from 1st 
 February to 20th May. The village sales are returned by the kurnam every five days, 
 and from them the Tahsildar compiles a return every ten days and transmits it to the 
 Collector's office, where the averages are struck. These returns of sales were prescribed 
 vvith a view to detennine the village prices for the purpose of fixing the demand under 
 the olungu system under which the land revenue demand dependcLi on the price of grain 
 every year. After the abolition of the olungu system the returns were continued for 
 the purpose of calculating the value of melvaram share of the grain due to the Tanjore 
 Ranees in the villages belonging to them. As the Collector is now no longer Heceiver 
 of the Rajah's estate, the returns appear to have been since diBcontinued.
 
 ovxu 
 
 (t) — statement showing the prices of articles of food, Sfc, in 1892, as compared 
 with those in 1797 at Manjeshwar, a village 10 miles from Mangalore, 
 compiled from the ' Blach boohs ' kept there. 
 
 Articles. 
 
 Quantity. 
 
 1 
 
 Price in 1797. 
 
 Price in 1892. 
 
 
 
 RS. 
 
 A 
 
 V. 
 
 R8. 
 
 A. 
 
 p. 
 
 Paddy 
 
 Per moorah of 42 pucka 
 
 seers. 
 
 
 
 9 
 
 
 
 1 
 
 4 
 
 
 
 Rice (Jeera) 1st Bort 
 
 Do. 
 
 2 
 
 
 
 
 
 5 
 
 
 
 
 
 Do. 3rd sort 
 
 Do. 
 
 1 
 
 8 
 
 
 
 4 
 
 
 
 
 
 Rice, muscaty, 3rd sort 
 
 Do. 
 
 1 
 
 4 
 
 
 
 3 
 
 8 
 
 
 
 Green gram . . . . 
 
 Do. 
 
 1 
 
 7 
 
 4 
 
 3 
 
 4 
 
 
 
 A kind of pulse called 'pigeon 
 
 Do. 
 
 1 
 
 13 
 
 2 
 
 3 
 
 4 
 
 
 
 pea' out of which dhoU is 
 
 
 
 
 
 
 
 
 prepared 
 
 
 
 
 
 
 
 
 DhoU 
 
 Do. 
 
 2 
 
 12 
 
 
 
 4 
 
 
 
 
 
 Black gram ' Phaseolus 
 
 Do. 
 
 1 
 
 7 
 
 4 
 
 3 
 
 4 
 
 
 
 Mungo.' 
 
 
 
 
 
 
 
 
 Horse-gram . . 
 
 Do. 
 
 1 
 
 
 
 
 
 3 
 
 4 
 
 
 
 Salt 
 
 Do. 
 
 
 
 12 
 
 
 
 3 
 
 8 
 
 
 
 Cows' ghee 
 
 Per seer of 24 tolas 
 
 
 
 3 
 
 8 
 
 
 
 7 
 
 
 
 Buffaloes' ghee 
 
 Do. 
 
 
 
 1 
 
 9 
 
 
 
 5 
 
 4 
 
 OU, cocoanut . , 
 
 Per maund of 28 lb. . . 
 
 1 
 
 12 
 
 
 
 4 
 
 
 
 
 
 Cocoanuts 
 
 Per 100 
 
 1 
 
 
 
 
 
 3 
 
 8 
 
 
 
 Jaggery (sugar-cane) 
 
 Per maund of 40 seers of 
 24 tolas each. 
 
 I 
 
 4 
 
 
 
 2 
 
 
 
 
 
 Gingelly seeds 
 
 Per seer of 80 Tolas . . 
 
 
 
 1 
 
 
 
 
 
 2 
 
 
 
 Mustard seeds, country 
 
 Do. 
 
 
 
 1 
 
 
 
 
 
 2 
 
 
 
 Turmeric 
 
 Do. 
 
 
 
 1 
 
 4 
 
 
 
 4 
 
 
 
 Tamarind 
 
 Per maund of 28 lb. . . 
 
 
 
 12 
 
 
 
 1 
 
 4 
 
 
 
 Chillies, country 
 
 Do. 
 
 2 
 
 
 
 
 
 4 
 
 
 
 
 
 Sugar . . 
 
 Do. 
 
 5 
 
 12 
 
 
 
 4 
 
 
 
 
 
 Chunam 
 
 Per moorah of 42 pucka 
 seers. 
 
 
 
 6 
 
 
 
 
 
 5 
 
 
 
 Pepper 
 
 Per maund of 28 lb. . . 
 
 2 
 
 
 
 
 
 6 
 
 
 
 
 
 Areca-nuts 
 
 Per candy 
 
 \ to 22 
 
 
 
 
 
 
 
 60 
 to 80 
 
 
 
 
 
 
 
 Beaten rice . . 
 
 Per seer of 80 tolas 
 
 
 
 
 
 6 
 
 
 
 1 
 
 
 
 
 
 Bamhoos . . 
 
 Per ] 00 
 
 2 
 
 
 
 
 
 I 12 
 Uo25 
 
 
 
 
 
 Tin 
 
 Per seer of 24 tolas 
 
 
 
 6 
 
 
 
 
 
 8 
 
 
 
 Copper 
 
 Per maund of 28 lb. 
 
 20 
 
 
 
 
 
 15 
 
 
 
 i 
 
 Coir yarn 
 
 Per 40 yards 
 
 
 
 
 
 1 
 
 
 
 
 
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 OXVl 
 
 /c) Statement showing the quantity and value of the principal articles of trade 
 
 exported from and imported into the Madras Presidency by sea for a series 
 of years {quantity and value are given in millions). 
 
 Note. — The statement was compiled from the statistics given in the Madras Manual 
 of Administration and in the Annual Trade Reports. 
 
 Years. 
 
 Exports. 
 
 Cotton wool. 
 
 a 
 
 Hides and 
 skins. 
 
 4 
 
 Coffee. 
 
 a 
 
 Indigo. 
 
 Sugar. 
 
 pi 
 
 
 10 
 
 1855-56 
 1856-57 
 1857-58 
 1858-59 
 1869-60 
 
 1860-61 
 1861-62 
 1862-63 
 1863-64 
 1864-65 
 
 1865-66 
 1866-67 
 1867-68 
 1868-69 
 1869-70 
 
 1870-71 
 1871-72 
 1872-73 
 1873-74 
 1874-75 
 
 1875-76 
 1876-77 
 1877-78 
 1878-79 
 1879-80 
 
 1880-81 
 1881-82 
 1882-83 
 1883-84 
 1884-85 
 
 1885-86 
 1886-87 
 1887-88 
 1888-89 
 1889-90 
 
 21 
 54 
 55 
 39 
 63 
 
 79 
 88 
 62 
 72 
 73 
 
 120 
 
 24 
 49 
 94 
 68 
 
 42 
 
 75 
 68 
 62 
 80 
 
 82 
 54 
 17 
 46 
 57 
 
 44 
 45 
 73 
 73 
 66 
 
 41 
 67 
 78 
 69 
 98 
 
 2-5 
 7-2 
 8-8 
 6-1 
 9-6 
 
 11-3 
 
 17- 
 23-8 
 44-7 
 40-4 
 
 48-4 
 9-4 
 
 12-4 
 21-4 
 19-1 
 
 10-6 
 17-2 
 15-9 
 12-8 
 16-3 
 
 16-5 
 10-7 
 3-5 
 10- 
 13-2 
 
 9-5 
 14-7 
 18- 
 16-7 
 25-4 
 
 10 
 11 
 12 
 10 
 11 
 
 12 
 14 
 15 
 
 is 
 
 15 
 16 
 17 
 18 
 18 
 
 •7 
 1-4 
 2-2 
 1-8 
 1-6 
 
 1-7 
 1-4 
 1-9 
 2-1 
 1-9 
 
 2- 
 
 2-4 
 2-9 
 
 10-8 
 
 12-9 
 
 15-7 
 
 11- 
 
 11-6 
 
 13-7 
 16-2 
 19-3 
 18-4 
 16-9 
 
 19-3 
 19-4 
 21-3 
 21-8 
 20-7 
 
 9 
 
 9 
 
 8 
 11 
 15 
 
 19 
 21 
 20 
 27 
 31 
 
 35 
 17 
 36 
 47 
 37 
 
 35 
 57 
 42 
 41 
 37 
 
 43 
 36 
 33 
 38 
 38 
 
 39 
 36 
 38 
 38 
 36 
 
 41 
 41 
 30 
 37 
 26 
 
 •9 
 
 •9 
 
 •8 
 
 1-2 
 
 1-9 
 
 3-2 
 
 4-7 
 5-4 
 6-6 
 
 7-7 
 
 7-8 
 
 4-2 
 
 8-1 
 
 10-8 
 
 8-3 
 13-8 
 11-3 
 15-2 
 13-6 
 
 16-6 
 14-3 
 13-6 
 15-6 
 15-3 
 
 15-2 
 13-6 
 13-5 
 14-5 
 12-5 
 
 13-5 
 15-2 
 15-3 
 18-6 
 15-7 
 
 LB. 
 
 2-9 
 
 2-8 
 
 2- 
 
 1-9 
 
 2-5 
 
 1-5 
 
 2-3 
 
 2-4 
 
 2- 
 
 1-5 
 
 1-6 
 •6 
 2-2 
 2-6 
 3- 
 
 3-8 
 5-2 
 2-9 
 4-2 
 2-8 
 
 2-5 
 3-1 
 1-9 
 2-9 
 4-9 
 
 2-8 
 5-9 
 3-8 
 5-8 
 4-7 
 
 RS. 
 
 4-3 
 4-7 
 3-9 
 3-6 
 
 4-6 
 
 2-8 
 
 4-9 
 
 5-2 
 
 4- 
 
 3-3 
 
 3-5 
 1-4 
 4-2 
 6-1 
 7-5 
 
 8-5 
 12-1 
 6-9 
 8-8 
 5-7 
 
 4-7 
 5-6 
 3-9 
 5-9 
 9-5 
 
 6-2 
 12-6 
 
 7-8 
 11-7 
 
 9-5 
 
 10 
 
 5 
 
 8-7 
 
 10- 
 
 10-9 
 
 11-9 
 
 •49 
 ■54 
 •45 
 •34 
 •43 
 
 •4 
 
 •32 
 
 ■26 
 
 •41 
 
 •38 
 
 •42 
 •28 
 ■12 
 •23 
 •24 
 
 •2 
 
 •33 
 
 •47 
 
 •22 
 
 •46 
 
 •4 
 
 •49 
 
 •41 
 
 •23 
 
 •31 
 
 •54 
 
 •91 
 
 1^25 
 
 1^48 
 
 MO 
 
 r25 
 1^13 
 M3 
 1^03 
 r35
 
 cxvu 
 
 (c) — Statement showing the quantity and value of the principal articles, ^c. — cont. 
 
 
 
 
 
 Exports 
 
 — eont. 
 
 
 
 
 
 Seeds. 
 
 Spices. 
 
 Rice. 
 
 Paddy.. 
 
 Cotton piece- 
 goods. 
 
 Years. 
 
 
 
 ^ 
 
 
 ^ 
 
 
 
 
 ^ 
 
 
 
 
 3 
 
 ■-*3 
 
 3 
 
 f-H 
 
 
 03 
 
 
 6 
 
 '-2 
 
 6 
 
 3 
 
 
 3 
 
 "3 
 
 3 
 
 cS 
 
 3 
 
 '3 
 
 3 
 
 "3 
 
 3 
 
 '3 
 
 
 a 
 
 > 
 
 a 
 
 > 
 
 a 
 
 > 
 
 a 
 
 > 
 
 a 
 
 > 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 21 
 
 
 CWT. 
 
 BS. 
 
 LB. 
 
 SR. 
 
 CWT. 
 
 BB. 
 
 CWT. 
 
 KS. 
 
 YDS. 
 
 ES. 
 
 1855-56 
 
 •61 
 
 1-7 
 
 29 
 
 2-4 
 
 2-6 
 
 6 5 
 
 •22 
 
 ■25 
 
 
 2^1 
 
 1856-57 
 
 ■71 
 
 2-4 
 
 21 
 
 \-2 
 
 2-4 
 
 5-1 
 
 •29 
 
 ■36 
 
 
 2- 
 
 1857-58 
 
 1-23 
 
 2^9 
 
 25 
 
 2-4 
 
 2^6 
 
 5^8 
 
 •29 
 
 •38 
 
 
 21 
 
 1858-59 
 
 •62 
 
 2^5 
 
 23 
 
 1^9 
 
 1-8 
 
 4-4 
 
 ■22 
 
 •43 
 
 
 2^4 
 
 1859-60 
 
 •36 
 
 1-5 
 
 38 
 
 2^2 
 
 2^1 
 
 5^2 
 
 ■27 
 
 •43 
 
 
 2^1 
 
 1860-61 
 
 •52 
 
 2-3 
 
 27 
 
 2-9 
 
 2^8 
 
 6-2 
 
 •21 
 
 •36 
 
 
 \-9 
 
 1861-62 
 
 •67 
 
 2-8 
 
 28 
 
 3-3 
 
 \-b 
 
 4^6 
 
 •21 
 
 •39 
 
 
 2-\ 
 
 1862-63 
 
 •89 
 
 3^7 
 
 23 
 
 2^2 
 
 1^3 
 
 4^5 
 
 •21 
 
 •42 
 
 
 2- 
 
 1863-64 
 
 •63 
 
 2^7 
 
 22 
 
 2^4 
 
 1-5 
 
 5-9 
 
 •3 
 
 ■6 
 
 
 l-Q 
 
 1864.65 
 
 •72 
 
 2^8 
 
 22 
 
 2^6 
 
 1-4 
 
 6-1 
 
 •3 
 
 •86 
 
 
 1^6 
 
 1865-66 
 
 •59 
 
 2^3 
 
 24 
 
 2-6 
 
 1-4 
 
 6^6 
 
 •28 
 
 •7 
 
 
 2- 
 
 1866-67 
 
 •10 
 
 •5 
 
 5 
 
 21 
 
 1-5 
 
 8-4 
 
 •24 
 
 •65 
 
 
 2^4 
 
 1867-68 
 
 •64 
 
 3^4 
 
 23 
 
 2-6 
 
 1-7 
 
 7- 
 
 •27 
 
 •65 
 
 
 3^4 
 
 1868-69 
 
 1^07 
 
 51 
 
 25 
 
 2^8 
 
 1^8 
 
 6-9 
 
 •31 
 
 •78 
 
 
 2^3 
 
 1869-70 
 
 •86 
 
 5^ 
 
 23 
 
 2^5 
 
 1-5 
 
 5-9 
 
 •25 
 
 •6 
 
 
 2-2 
 
 1870-71 
 
 .. 
 
 4-9 
 
 24 
 
 26 
 
 2^1 
 
 7-4 
 
 •28 
 
 •56 
 
 
 2-2 
 
 1871-72 
 
 , , 
 
 5^8 
 
 34 
 
 35 
 
 2^4 
 
 8-5 
 
 ■31 
 
 •6 
 
 
 2-5 
 
 1872-73 
 
 , , 
 
 4- 
 
 32 
 
 2-9 
 
 2^1 
 
 8-8 
 
 •29 
 
 •69 
 
 V-? 
 
 2^6 
 
 1873-74 
 
 , , 
 
 5^ 
 
 25 
 
 2-7 
 
 3-5 
 
 12^4 
 
 •36 
 
 •71 
 
 9-1 
 
 2^8 
 
 1874-75 
 
 " 
 
 5^4 
 
 28 
 
 3^4 
 
 3^1 
 
 10-9 
 
 ■27 
 
 •66 
 
 9-8 
 
 2^9 
 
 1875-76 
 
 1^36 
 
 5-9 
 
 30 
 
 4^1 
 
 2-4 
 
 8-9 
 
 •29 
 
 •68 
 
 7-6 
 
 2-8 
 
 1876-77 
 
 •90 
 
 4-9 
 
 27 
 
 3-7 
 
 1-5 
 
 6^2 
 
 •23 
 
 •54 
 
 1- 
 
 3^2 
 
 1877-78 
 
 •56 
 
 3^5 
 
 • 18 
 
 2-9 
 
 •8 
 
 4-7 
 
 •17 
 
 •63 
 
 b-b 
 
 2^8 
 
 1878-79 
 
 •39 
 
 2^5 
 
 25 
 
 4^2 
 
 1-3 
 
 7^4 
 
 •21 
 
 •75 
 
 5-2 
 
 2^5 
 
 1879-80 
 
 1-37 
 
 7-7 
 
 28 
 
 4^3 
 
 2-2 
 
 9^9 
 
 •22 
 
 •55 
 
 5-3 
 
 2-2 
 
 1880-81 
 
 1-49 
 
 7^7 
 
 30 
 
 41 
 
 2^8 
 
 10' 
 
 •47 
 
 •88 
 
 63 
 
 2^6 
 
 1881-82 
 
 1^47 
 
 1-1 
 
 35 
 
 4^6 
 
 1-7 
 
 5-6 
 
 •3 
 
 •55 
 
 6^9 
 
 3^ 
 
 1882-83 
 
 1^40 
 
 6-5 
 
 32 
 
 5-4 
 
 1^5 
 
 4^6 
 
 •16 
 
 •29 
 
 83 
 
 3^3 
 
 1883-84 
 
 2-1 
 
 10-3 
 
 ■ 31 
 
 5^9 
 
 2-2 
 
 6^2 
 
 •17 
 
 •32 
 
 11^2 
 
 4^ 
 
 1884-85 
 
 r86 
 
 8-8 
 
 37 
 
 7^6 
 
 1^9 
 
 6^4 
 
 ■29 
 
 •64 
 
 131 
 
 4-8 
 
 1885-86 
 
 1^82 
 
 8^6 
 
 34 
 
 7^4 
 
 1-4 
 
 5-8 
 
 •27 
 
 •58 
 
 15-4 
 
 4-2 
 
 1886-87 
 
 201 
 
 9^4 
 
 43 
 
 8-8 
 
 1^9 
 
 7^1 
 
 ■26 
 
 •49 
 
 I3^6 
 
 4^6 
 
 1 1887-88 
 
 2-27 
 
 10-6 
 
 36 
 
 8-1 
 
 1-8 
 
 6-6 
 
 •28 
 
 •64 
 
 14^6 
 
 4^7 
 
 1888-89 
 
 r74 
 
 9^7 
 
 41 
 
 8-6 
 
 1-9 
 
 7-3 
 
 ■36 
 
 •70 
 
 13^3 
 
 4.4 
 
 1889-90 
 
 r92 
 
 11-9 
 
 38 
 
 7-1 
 
 2-1 
 
 8-3 
 
 •30 
 
 ■62 
 
 13-6 
 
 4^5
 
 oxnii 
 
 (c) — Statement showing the quantity and value of the principal articles, 8fc. — cont. 
 
 Years. 
 
 
 Exports- 
 
 oont. 
 
 
 
 
 Oils. 
 
 Cocoanuts 
 and kernels. 
 
 Coir, yarn and 
 rope. 
 
 Tobacco. 
 
 
 
 
 
 
 
 
 
 
 t 
 
 0? 
 
 Value. 
 
 Quantity. 
 
 
 '■3 
 
 3 
 
 '•♦3 
 § 
 
 6 
 > 
 
 22 
 
 23 24 
 
 25 
 
 26 
 
 27 
 
 28 
 
 29 
 
 
 GALS. 
 
 RS. 
 
 NO. 
 
 BS. 
 
 CWT. 
 
 KS. 
 
 LB. 
 
 R8. 
 
 1855-56 
 
 2-3 
 
 •6 
 
 
 •8 
 
 •12 
 
 •3 
 
 2 
 
 .2 
 
 1856-57 
 
 2-0 
 
 •7 
 
 
 •9 
 
 ■14 
 
 •3 
 
 2 
 
 •2 
 
 1857-58 
 
 1-6 
 
 •9 
 
 
 •7 
 
 •15 
 
 •3 
 
 3 
 
 •3 
 
 1858-59 
 
 2-7 
 
 •7 
 
 
 •8 
 
 •11 
 
 •3 
 
 3 
 
 •3 
 
 1859-60 
 
 2-4 
 
 •6 
 
 
 M 
 
 •17 
 
 •3 
 
 2 
 
 •2 
 
 1860-61 
 
 2-5 
 
 1-6 
 
 
 1-9 
 
 •18 
 
 •6 
 
 2 
 
 •1 
 
 1861-62 
 
 1-8 
 
 1-6 
 
 
 3- 
 
 •18 
 
 •9 
 
 2 
 
 •1 
 
 1862-63 
 
 2-8 
 
 2-7 
 
 
 3-6 
 
 •18 
 
 M 
 
 5 
 
 •3 
 
 1863-64 
 
 3-8 
 
 3-7 
 
 
 3-5 
 
 •21 
 
 M 
 
 3 
 
 •3 
 
 1864-65 
 
 2-8 
 
 2-5 
 
 
 3-6 
 
 •18 
 
 •9 
 
 4 
 
 •6 
 
 1865-66 
 
 1-6 
 
 1-5 
 
 
 21 
 
 •13 
 
 1-2 
 
 3 
 
 •5 
 
 1866-67 
 
 1-1 
 
 1-2 
 
 
 2-5 
 
 •18 
 
 1- 
 
 2 
 
 •3 
 
 1867-68 
 
 1-8 
 
 2-4 
 
 
 3-2 
 
 ■19 
 
 1-3 
 
 3 
 
 •4 
 
 1868-69 
 
 2-6 
 
 41 
 
 
 3-4 
 
 •25 
 
 17 
 
 3 
 
 •4 
 
 1869-70 
 
 2-8 
 
 4- 
 
 
 3-2 
 
 •26 
 
 1-8 
 
 3 
 
 •6 
 
 1870-71 
 
 1-9 
 
 2-8 
 
 
 2-2 
 
 •18 
 
 r3 
 
 3 
 
 •4 
 
 1871-72 
 
 4-2 
 
 5-6 
 
 
 3-8 
 
 •19 
 
 1-4 
 
 4 
 
 •6 
 
 1872-73 
 
 4- 
 
 5-5 
 
 
 3- 
 
 •24 
 
 P8 
 
 3 
 
 •6 
 
 1873-74 
 
 2-3 
 
 3-2 
 
 
 2-7 
 
 •24 
 
 1-9 
 
 4 
 
 •8 
 
 1874-7 3 
 
 2-8 
 
 3-3 
 
 
 3-2 
 
 •26 
 
 2- 
 
 5 
 
 •8 
 
 1875-76 
 
 31 
 
 3-4 
 
 
 • 1-2 
 
 •25 
 
 1-9 
 
 5 
 
 •7 
 
 1876-77 
 
 3-9 
 
 3-9 
 
 
 * 1-4 
 
 •29 
 
 2-6 
 
 6 
 
 1- 
 
 1877-78 
 
 2-4 
 
 3-1 
 
 
 * 1-2 
 
 •29 
 
 2^4 
 
 6 
 
 M 
 
 1878-79 
 
 2-7 
 
 3-8 
 
 
 * 1-5 
 
 •3 
 
 2^6 
 
 5 
 
 11 
 
 1979-80 
 
 3-6 
 
 4-2 
 
 
 *l-7 
 
 •24 
 
 rs 
 
 7 
 
 M 
 
 1880-81 
 
 3-8 
 
 4-1 
 
 
 3-6 
 
 •23 
 
 \-& 
 
 7 
 
 1^3 
 
 1881-82 
 
 35 
 
 3-4 
 
 
 2-9 
 
 •32 
 
 2-i 
 
 6 
 
 \-z 
 
 1882-83 
 
 2-9 
 
 3-1 
 
 
 2-6 
 
 •32 
 
 2-4 
 
 7 
 
 1^4 
 
 1883-84 
 
 4-1 
 
 4-5 
 
 
 3-5 
 
 •32 
 
 2^4 
 
 7 
 
 1-4 
 
 1884-85 
 
 4-9 
 
 4-8 
 
 
 3-8 
 
 •38 
 
 29 
 
 7 
 
 1-6 
 
 1885-86 
 
 3-9 
 
 4- 
 
 
 3-2 
 
 •35 
 
 2^7 
 
 7 
 
 1^3 
 
 1886-87 
 
 3-7 
 
 3-9 
 
 
 2-9 
 
 •36 
 
 2-7 
 
 8 
 
 \-\ 
 
 1887-88 
 
 4-2 
 
 4-4 
 
 
 3-9 
 
 •32 
 
 2-4 
 
 9 
 
 1-6 
 
 1888-89 
 
 4-9 
 
 6- 
 
 
 4-4 
 
 •3 5 
 
 2-6 
 
 10 
 
 2^1 
 
 1889-90 
 
 4-9 
 
 61 
 
 
 3-7 
 
 •43 
 
 3^3 
 
 8 
 
 l-l 
 
 * Particulars of kernels not available for these years.
 
 CXIX 
 
 (c) — statement skotcing the quantity and value of the principal articles, Sfc 
 
 — cont. 
 
 
 Imports. 
 
 Cotton piece- 
 goods. 
 
 Cotton twist. 
 
 Paddy. 
 
 Rice. 
 
 Metals. 
 
 Years. 
 
 ^ 
 
 
 i" 
 
 
 ^ 
 
 
 ■t.3 
 
 
 i> 
 
 
 
 1 
 
 6 
 "3 
 
 1 
 
 6 
 
 a 
 
 « 
 
 
 
 a 
 
 3 
 
 1 
 
 "3 
 
 
 a 
 
 > 
 
 :? 
 
 ;> 
 
 a 
 
 > 
 
 a 
 
 > 
 
 a 
 
 > 
 
 30 
 
 31 
 
 32 
 
 33 
 
 34 
 
 35 
 
 36 
 
 37 
 
 38 
 
 39 
 
 
 YD8. 
 
 R8. 
 
 LB. 
 
 R8. 
 
 1 
 
 CWT. 1 RS. 
 
 CWT. 
 
 RS. 
 
 CWT. 
 
 RS. 
 
 1855-56 
 
 •3 
 
 2-8 
 
 3-9 
 
 2-3 
 
 •03 04 
 
 -63 
 
 2-05 
 
 
 1-08 
 
 1856-57 
 
 •5 
 
 2-9 
 
 4-2 
 
 2-3 
 
 •21 -36 
 
 -43 
 
 1-22 
 
 
 1^99 
 
 1857-58 
 
 1-2 
 
 3-8 
 
 3-5 
 
 •2-1 
 
 •21 -35 
 
 -28 
 
 -82 
 
 
 1-91 
 
 1858-59 
 
 2-7 
 
 4-4 
 
 6-1 
 
 3-5 
 
 -37 -73 
 
 -18 
 
 ■65 
 
 
 2-43 
 
 1859.60 
 
 9-9 
 
 4-9 
 
 7-4 
 
 4-1 
 
 •24 -41 
 
 •11 
 
 •37 
 
 
 2^28 
 
 1860-61 
 
 
 6-1 
 
 7- 
 
 3-9 
 
 -29 -55 
 
 •21 
 
 -75 
 
 
 3^03 
 
 1861-62 
 
 
 5-2 
 
 6-2 
 
 3-8 
 
 •34 
 
 -72 
 
 ■67 
 
 2-44 
 
 
 3^62 
 
 1862-63 
 
 
 6-4 
 
 4- 
 
 2-6 
 
 •27 
 
 •56 
 
 -93 
 
 3-20 
 
 
 2-33 
 
 1863-64 
 
 
 10-1 
 
 7- 
 
 4-5 
 
 •37 
 
 •80 
 
 1-04 
 
 3-85 
 
 
 3-37 
 
 1864-65 
 
 
 9-6 
 
 6-4 
 
 6-2 
 
 -29 
 
 -61 
 
 1-05 
 
 4-03 
 
 
 3^75 
 
 1865-66 
 
 
 11-2 
 
 6-5 
 
 7-2 
 
 -49 
 
 1-27 
 
 •54 
 
 2-51 
 
 
 3-18 
 
 1866-67 
 
 4*2'- 1 
 
 10-2 
 
 7-2 
 
 7-9 
 
 •46 
 
 1-39 
 
 •27 
 
 1-45 
 
 
 3^03 
 
 1867-68 
 
 57-9 
 
 12- 
 
 9-2 
 
 8-3 
 
 •56 
 
 1-42 
 
 -35 
 
 1-54 
 
 
 4-01 
 
 1868-69 
 
 66-9 
 
 13-5 
 
 10-1 
 
 9-1 
 
 •53 
 
 1-37 
 
 -52 
 
 2-13 
 
 
 4-33 
 
 1869-70 
 
 71-9 
 
 12-6 
 
 11-7 
 
 9-3 
 
 •64 1^58 
 
 -94 
 
 3-79 
 
 
 4^67 
 
 1870-71 
 
 94-6 
 
 15- 
 
 12-9 
 
 10-4 
 
 -34 
 
 -71 
 
 -83 
 
 2-98 
 
 
 3^98 
 
 1871-72 
 
 93-8 
 
 15-3 
 
 11-7 
 
 9-5 
 
 •29 
 
 •60 
 
 -73 
 
 2-52 
 
 
 3-22 
 
 1872-73 
 
 86-6 
 
 14-1 
 
 14-3 
 
 10-7 
 
 •33 
 
 -74 
 
 •8« 
 
 3-11 
 
 
 2-71 
 
 1873-74 
 
 96-5 
 
 15-7 
 
 13-2 
 
 10-4 
 
 -54 
 
 1-27 
 
 -56 
 
 2-04 
 
 
 3-13 
 
 1874-75 
 
 79- 
 
 13-5 
 
 14-1 
 
 10-9 
 
 -80 
 
 2-02 
 
 -37 
 
 1-38 
 
 
 3-59 
 
 1875-76 
 
 88-6 
 
 14-3 
 
 16- 
 
 12-4 
 
 •79 
 
 2-02 
 
 -41 
 
 1-55 
 
 -43 
 
 4-99 
 
 1876-77 
 
 87-3 
 
 14-3 
 
 16-5 
 
 11-3 
 
 1-21 
 
 3-71 
 
 6- 
 
 32-76 
 
 -36 
 
 4-32 
 
 1877-78 
 
 72-4 
 
 11-4 
 
 14-2 
 
 9-8 
 
 2-22 
 
 7-82 
 
 9-21 
 
 55-42 
 
 -41 
 
 4-49 
 
 1878-79 
 
 68-5 
 
 10-5 
 
 14-1 
 
 9-5 
 
 1-87 
 
 5-99 
 
 2-49 
 
 13-71 
 
 -25 
 
 313 
 
 1879-80 
 
 86-9 
 
 13-3 
 
 16-5 
 
 12- 
 
 1-1 
 
 3-03 
 
 •61 
 
 2-78 
 
 •35 
 
 355 
 
 1880-81 
 
 106-4 
 
 16-7 
 
 20-2 
 
 14-6 
 
 •44 -97 
 
 -80 
 
 2-75 
 
 •51 
 
 4-70 
 
 1881-82 
 
 110-8 
 
 16-9 
 
 17-9 
 
 12- 
 
 -71 
 
 1-22 
 
 1-63 
 
 5-21 
 
 ■37 
 
 3-83 
 
 1882-83 
 
 128-7 
 
 20-2 
 
 23-5 
 
 15- 
 
 -76 
 
 1-27 
 
 1-68 
 
 5-28 
 
 ■37 
 
 4-28 
 
 1883-84 
 
 130-7 
 
 20=4 
 
 19-7 
 
 13-7 
 
 •53 
 
 •99 
 
 2-02 
 
 6-29 
 
 ■55 
 
 5-59 
 
 1884-85 
 
 147-9 
 
 23-4 
 
 22-9 
 
 14-8 
 
 •89 
 
 1-65 
 
 -99 
 
 3-54 
 
 •49 
 
 5-53 
 
 1885-86 
 
 123-4 
 
 18-4 
 
 20-3 
 
 12-6 
 
 1-37 
 
 2-85 
 
 1-30 
 
 4-93 
 
 •62 
 
 5-61 
 
 1886-87 
 
 177-8 
 
 26-3 
 
 21-5 
 
 13-9 
 
 -53 
 
 1-06 
 
 1-28 
 
 4-75 
 
 -46 
 
 5-17 
 
 1887-88 
 
 139-3 
 
 22-1 
 
 21-7 
 
 13-8 
 
 -66 
 
 •99 
 
 1-48 
 
 5-57 
 
 •63 
 
 5-42 
 
 1888-89 
 
 173- 
 
 26-4 
 
 23-3 
 
 15-4 
 
 -36 
 
 •62 
 
 ■98 
 
 3-57 
 
 -59 
 
 4-72 
 
 1889-90 
 
 169-1 
 
 26-8 
 
 21-5 
 
 14-7 
 
 -49 
 
 -98 
 
 •82 
 
 3-34 
 
 -5 
 
 5-78
 
 cxx 
 
 
 8 
 
 -<S 
 
 •S «c 
 •=0 S 
 
 «o 8 
 ^00 
 
 MS I 
 
 .8 8 
 
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 m 
 
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 •9-pvx'^ aujoq-xreji I^^ox 
 
 •mox 
 
 •e:;iod-'B98 eeap'Bpi 
 
 •sumo; 
 (jjod-Bas 0T{; Suipnp 
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 •SUMC; 
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 •l^j^oi 
 
 •Sl.I0d"B88 SBjp'BIlI 
 
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 -■B8S 911% Suiptipxa 
 
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 s9t' 9 
 
 CCICD(MeOCO-*<.-^OCDCvlOi.-<iO 
 ■^OOCOOOOO^tMOOOrt 
 
 • <M 
 
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 t^.-10 >-l C0O3 rH^-llO 
 
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 •04 
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 ■04 
 
 coiccocceoco-Ht^i^c^ioo © 
 • o>oooopoo*opp --( 
 
 ■^ 
 
 
 
 
 -3 
 
 
 
 
 
 
 
 
 
 
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 (e) — Statement shoiving the average prices in Madras of the staph 
 commodities of trade. 
 
 
 1844 
 
 1849 
 
 1854 
 
 1859 
 
 1864 
 
 1869 
 
 1874 
 
 Articles. 
 
 to 
 
 to 
 
 to 
 
 .to 
 
 to 
 
 to 
 
 to 
 
 
 1848. 
 
 1853. 
 
 1858. 
 
 1863. 
 
 1868. 
 
 1873. 
 
 1876. 
 
 Imports. 
 
 RS. 
 
 KS. 
 
 R8. 
 
 RS. 
 
 RS. . 
 
 RS. 
 
 RS. 
 
 Shirtings, per piece 
 
 6-88 
 
 6-15 
 
 7-25 
 
 7-87 
 
 12-16 
 
 8-41 
 
 6-06 
 
 Grey shirtings, per 8^ lb. . . 
 
 
 
 
 
 9-56 
 
 6-12 
 
 5-36 
 
 Mule twist, No. 40, per 
 
 
 
 
 
 
 
 
 bundle 
 
 2-81 
 
 2 64 
 
 2-8 
 
 3-94 
 
 5-74 
 
 3-69 
 
 3-24 
 
 Turkey red, Nos. 40 to 60, 
 
 
 
 
 
 
 
 
 per bundle of 12 lb. 
 
 15-46 
 
 13-52 
 
 14-5 
 
 
 
 
 
 Turkey red, Nos. 40 to 60, 
 
 
 
 
 
 
 
 
 per bundle of 10 lb. 
 
 16-22 
 
 
 
 21-87 
 
 22-26 
 
 17-7 
 
 15-94 
 
 Orange, Nos. 40 to 60, per 
 
 
 
 
 
 
 
 
 bundle 
 
 , , 
 
 4-28 
 
 
 6- 
 
 6-68 
 
 4-9 
 
 4-54 
 
 Do. Nos. 30 to 60, do. 
 
 , , 
 
 3-72 
 
 3-78 
 
 3-52 
 
 
 
 , , 
 
 Copper sheathing, 16 to 32 
 
 
 
 
 
 
 
 
 oz., per candy 
 
 255-3 
 
 258-65 
 
 321-8 
 
 275-7 
 
 249-85 
 
 212- 
 
 
 Copper sheathing, per candy. 
 
 
 
 
 
 
 
 265-42 
 
 Iron, assorted, per candy . , 
 
 23-69 
 
 19-*8 
 
 30 -'3 
 
 2214 
 
 21 -'63 
 
 23-26 
 
 
 Do. spelter, do. 
 
 63-43 
 
 42-8 
 
 71-15 
 
 57-15 
 
 62-4 
 
 58-5 
 
 
 £xporlii. 
 
 
 
 
 
 
 
 
 Hides, buffalo, per 100 
 
 55-5 
 
 42-25 
 
 58-75 
 
 60- 
 
 93-35 
 
 133-75 
 
 
 Indigo, ordinary, per maund. 
 
 
 32- 
 
 39-9 
 
 45-05 
 
 51-7 
 
 50-75 
 
 40-" 
 
 Do. good 
 
 
 30-37 
 
 45-25 
 
 51-5 
 
 62-35 
 
 63-31 
 
 
 Sugar, per candy 
 
 49-35 
 
 Si- 
 
 28-53 
 
 27-37 
 
 36-9 
 
 33-97 
 
 27-42 
 
 Linseed, per candv . . 
 
 13-2 
 
 12-87 
 
 22-37 
 
 19-31 
 
 26- 
 
 24-3 
 
 
 Rice, per garce ' . . 
 
 209- 
 
 159-1 
 
 246- 
 
 304- 
 
 360-6 
 
 296- 
 
 332-5 
 
 Remarks. — Taken roughly, it will be seen that the nominal prices of the articles of 
 import in 1874-76 are about the same as in 1850. From Mr. O'Conor's report on the 
 trade of India for 1890-91, it appears that the prices of staple imports at Calcutta have 
 fallen since 1873 as shown below, taking the prices in 1873 to be represented by 100. 
 
 
 
 Mule 
 
 Twist. 
 
 
 
 
 
 Grey 
 
 
 
 Copper 
 
 Iron, 
 
 
 
 
 
 shirtings, 
 
 White, 
 No. 40. 
 
 Turkey 
 
 sheath- 
 
 flat, bolt, 
 
 Total. 
 
 
 8ilb. 
 
 red. No. 
 40. 
 
 ing. 
 
 &c. 
 
 
 March 1873 
 
 100 
 
 100 
 
 100 
 
 100 
 
 100 
 
 500 
 
 June 1874 
 
 97 
 
 92 
 
 106 
 
 95 
 
 108 
 
 498 
 
 March 1875 
 
 86 
 
 92 
 
 102 
 
 103 
 
 93 
 
 476 
 
 1876 
 
 86 
 
 90 
 
 92 
 
 99 
 
 79 
 
 446 
 
 January 1877 
 
 78 
 
 90 
 
 85 
 
 92 
 
 •67 
 
 412 
 
 1878 
 
 73 
 
 78 
 
 87 
 
 86 
 
 60 
 
 384 
 
 1879 
 
 76 
 
 75 
 
 78 
 
 80 
 
 56 
 
 365 
 
 1880 
 
 81 
 
 84 
 
 75 
 
 83 
 
 73 
 
 396 
 
 1881 
 
 82 
 
 82 
 
 69 
 
 81 
 
 56 
 
 370 
 
 1882 
 
 78 
 
 84 
 
 69 
 
 89 
 
 71 
 
 391- 
 
 1883 
 
 82 
 
 74 
 
 54 
 
 80 
 
 60 
 
 350 
 
 1884 
 
 75 
 
 74 
 
 62 
 
 77 
 
 62 
 
 350 
 
 1885 
 
 76 
 
 72 
 
 58 
 
 64 
 
 54 
 
 3-24 
 
 1886 
 
 84 
 
 67 
 
 57 
 
 57 
 
 50 
 
 315 
 
 1887 
 
 81 
 
 62 
 
 57 
 
 65 
 
 53 
 
 318 
 
 1888 
 
 79 
 
 75 
 
 59 
 
 90 
 
 61 
 
 364 
 
 1889 
 
 81 
 
 75 
 
 57 
 
 98 
 
 65 
 
 376 
 
 1890 
 
 76 
 
 74 
 
 57 
 
 69 
 
 79 
 
 355 
 
 1891 
 
 74 
 
 70 
 
 56 
 
 ' 71 
 
 62 
 
 333 
 
 August 1891 
 
 76 
 
 66 
 
 57 
 
 75 
 
 61 
 
 335 
 
 Information regarding variations in the Madras prices is not available, but there is 
 little doubt that prices in Madras have fallen in about the same proportions as in Calcutta ,
 
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 (g) — Statement shoiving the Net Imports of Gold cmd Silver into India for a 
 series of years (i?i Million hx. Ex. = 10 Us.). 
 
 
 
 Net imports. 
 
 
 
 Net imports. 
 
 Years. 
 
 
 
 
 Years. 
 
 
 
 
 
 Gold. 
 
 Silver. 
 
 Total. 
 
 
 Gold. 
 
 Silver. 
 
 Total. 
 
 1834-35 .. 
 
 
 
 1-8 
 
 1865-66 . . 
 
 5-7 
 
 18-7 
 
 24-4 
 
 1835-36 . 
 
 
 . ^ 
 
 
 
 2-1 
 
 1866-67 . 
 
 
 3-8 
 
 7-0 
 
 10-8 
 
 1836-37 . 
 
 
 
 
 
 1-8 
 
 1867-68 . 
 
 
 4-6 
 
 6-6 
 
 10-2 
 
 1837-38 . 
 
 
 , , 
 
 
 
 2-3 
 
 1868-69 . 
 
 
 5-2 
 
 8-6 
 
 13-8 
 
 1838-39 . 
 
 
 , , 
 
 
 
 2-6 
 
 1869-70 , 
 
 
 5-6 
 
 7-3 
 
 12-9 
 
 1839-40 . 
 
 
 
 
 
 1-5 
 
 1870-71 . 
 
 
 2-3 
 
 0-9 
 
 3-2 
 
 1840-41 . 
 
 
 
 
 
 1-4 
 
 1871-72 . 
 
 
 3-6 
 
 6-5 
 
 10-1 
 
 1841-42 . 
 
 
 
 
 
 1-7 
 
 1872-73 . 
 
 
 2-5 
 
 0-7 
 
 3-2 
 
 1842-43 . 
 
 
 
 
 
 3-2 
 
 1873-74 . 
 
 
 1-4 
 
 2-5 
 
 3-9 
 
 1843-44 . 
 
 
 
 
 
 3-8 
 
 1874-75 . 
 
 
 1-9 
 
 4-6 
 
 6-5 
 
 1844-45 . 
 1845-46 . 
 
 
 
 
 
 3'1 
 
 
 
 
 
 
 * ' 
 
 
 
 1-9 
 
 Total .. 
 
 93-0 
 
 174-6 
 
 267-6 
 
 1846-47 . 
 1847-48 . 
 
 
 b's 
 
 1-0 
 
 1-4 
 -0-5 
 
 2-2 
 0-5 
 
 
 
 
 
 
 1875-76 .. 
 
 1-5 
 
 1-6 
 
 3-1 
 
 1848-49 . 
 
 
 1-4 
 
 0-3 
 
 1-7 
 
 1876-77 . 
 
 
 0-2 
 
 7-2 
 
 7-4 
 
 1849-50 . 
 
 
 1-1 
 
 1-3 
 
 2-4 
 
 1877-78 . 
 1878-79 . 
 1879-80 . 
 
 
 0-5 
 
 -0-9 
 
 1-8 
 
 14-7 
 4-0 
 
 7-8 
 
 15-2 
 3-1 
 9-6 
 
 ' 
 
 'otal , . 
 
 
 
 34-0 
 
 
 
 
 
 
 1880-81 . 
 1881-82 . 
 
 
 3-6 
 4-9 
 
 3-9 
 5-3 
 
 7-0 
 10-2 
 
 
 
 1 850-51 .. 
 
 1-2 
 
 21 
 
 3-3 
 
 1882-83 . 
 
 
 4-9 
 
 lb 
 
 12-4 
 
 I80I-52 . 
 
 
 1-2 
 
 2-9 
 
 41 
 
 ; 1883-84 . 
 
 
 5-5 
 
 6-4 
 
 11-9 
 
 1852-53 . 
 
 
 1-2 
 
 4-6 
 
 5-8 
 
 1 1884-85 . 
 
 
 4-7 
 
 7-2 
 
 11-9 
 
 1853-54 , 
 
 
 1-1 
 
 2-3 
 
 3-4 
 
 1885-86 . 
 
 
 2-8 
 
 11-6 
 
 14-4 
 
 1854-55 . 
 
 
 0-7 
 
 
 0-7 
 
 1886-87 . 
 
 
 21 
 
 7-2 
 
 9-3 
 
 1855-56 . 
 
 
 2-5 
 
 8-2 
 
 10-7 
 
 1887-88 . 
 
 
 30 
 
 9-2 
 
 12-2 
 
 1856-57 . 
 
 
 2-1 
 
 ll-l 
 
 13-2 
 
 1888-89 . 
 
 
 2-8 
 
 9-3 
 
 12-1 
 
 1857-58 , 
 
 
 2-8 
 
 12-2 
 
 15-0 
 
 1889-90 . 
 
 
 4-6 
 
 11-0 
 
 15-6 
 
 1858-59 
 1859-60 , 
 
 
 4.4 
 4-3 
 
 7-8 
 IM 
 
 12-2 
 15-4 
 
 
 
 
 
 
 Total .. 
 
 42-0 
 
 113-9 
 
 165-9 
 
 1860-61 
 
 
 4-2 
 5-2 
 
 5-3 
 9-1 
 
 9-5 
 
 
 
 
 
 1861-62 '. 
 
 
 14-3 
 
 1890-91 .. 
 
 5-6 
 
 14-2 
 
 19-8 
 
 1862-63 . 
 
 
 6-8 
 
 12-6 
 
 19-4 
 
 
 
 
 
 1863-64 . 
 
 
 8-9 
 
 12-8 
 
 21-7 
 
 Grand Total from 
 
 
 
 
 1864-65 . 
 
 
 9-8 
 
 101 
 
 19-9 
 
 1850.51 
 
 140-6 
 
 302-7 
 
 443-3
 
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 66 cwt. of jute 
 
 404 gallons 
 
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 06,465 lb.* . 
 
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 25,531 lb., 223, 
 
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 maunds 
 
 62 maunds 
 51 cwts. 
 86 bottles 
 
 63 cwt. 
 65 cwt. 
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 cxliii 
 
 (d) — Statement shoivimj the value of land in certain districts of the 
 Madras Presidency. 
 
 (1) — Statement s/iowiiig the average value of land per acre 
 in the Tanjore District. 
 
 
 Years. 
 
 Wet lauds. 
 
 Remarks. 
 
 
 
 1823-24 
 
 RS. 
 
 12 
 
 The values for the 
 
 
 
 1824-25 
 
 12 
 
 years up to 1862-63 
 
 
 
 1825-26 
 
 15 
 
 have been deduced 
 
 
 1826-27 
 
 9 
 
 from the values en- 
 
 
 
 1827-28 
 
 9 
 
 tered in the deeds 
 
 
 
 1828-29 
 
 25 
 
 of sale and mortgage 
 
 
 
 1829-30 
 
 13 
 
 of lands paying 
 
 
 
 1830-31 
 
 15 
 
 revenue to Govern- 
 
 
 
 1831-32 
 
 16 
 
 ment, which passed 
 
 
 
 1832-33 
 
 13 
 
 through the Collec- 
 
 
 
 1833-34 
 
 19 
 
 tor's office under the 
 
 
 
 1834-35 
 
 18 
 
 system of mirasi 
 
 
 
 1835-36 
 
 18 
 
 registry, which for- 
 
 
 
 1836-37 
 
 19 
 
 merly prevailed in 
 
 
 
 1837-38 
 
 23 
 
 the district. 
 
 
 
 1838-39 
 
 20 
 
 The selling prices for 
 
 
 
 1839-40 
 
 23 
 
 the years subse- 
 
 
 
 ]840-41 
 
 27 
 
 quent to 1862-63 
 
 
 
 1841-42 
 
 27 
 
 have been deduced 
 
 
 
 1842-43 
 
 26 
 
 from the values 
 
 
 
 1843-44 
 
 24 
 
 given in the deeds of ! 
 
 
 1844-45 
 
 26 
 
 sale registered in i 
 
 
 1862-63 
 
 39 
 
 the Registration offi- 
 
 
 
 1868-69 
 
 151 
 
 ces. 
 
 
 
 1869-70 
 
 160 
 
 
 
 
 1870-71 
 
 148 
 
 
 
 
 1871-72 
 
 138 
 
 
 
 
 1872-73 
 
 132 
 
 
 
 
 1873-74 
 
 146 
 
 
 
 
 1874-75 
 
 126 
 
 
 
 
 1875-76 
 
 153 
 
 
 
 
 1876-77 
 
 180 
 
 
 
 
 1877-78 
 
 172 
 
 
 
 (2) — Table shelving the selling prices of land in certain villages 
 in the Tanjore District per acre. 
 
 Taluk. 
 
 Village. 
 
 1838-39 
 
 1 
 
 ! 1840. 
 
 1885-88. 
 
 Remarks. 
 
 
 
 ES. 
 
 RS. 
 
 RS. 
 
 
 Shiyali 
 
 Alakudi 
 
 21 
 
 25 
 
 235 
 
 The selling prices for 
 
 Do. 
 
 Valluvakkudi 
 
 « 
 
 20 
 
 170 
 
 die Tear.s 1838-39 and 
 
 Do. 
 
 Kilanganur 
 
 31 
 
 38 
 
 300 
 
 1840 arc the values 
 
 Do. 
 
 Keelayur 
 
 42 
 
 62 
 
 272 
 
 deduced from the 
 
 Do. 
 
 Cadavasal 
 
 20 
 
 21 
 
 132 
 
 prices for which lands 
 
 Kumbakonam 
 
 Yaragraharaiii ... 
 
 47 
 
 48 
 
 433 
 
 were sold for arrears 
 
 Do. 
 
 Kadichaii;bacli ... 
 
 38 
 
 4(3 
 
 409 
 
 of revenue. Those for 
 
 Do. 
 
 Valanpinian 
 
 12 
 
 30 
 
 244 
 
 1885-H8 are the avera- 
 
 Do. 
 
 Tillayambur 
 
 11 
 
 72 
 
 392 
 
 ges deduced from the 
 
 Tanjore 
 
 Perambuliynr 
 
 los 
 
 1U8 
 
 672 
 
 i-ale (Seeds i-egisteredin 
 
 Do. 
 
 Vaithinathampalli 
 
 42 
 
 129 
 
 547 
 
 Registration offices.
 
 cxliv 
 
 (3) — Table sJwiving the prices paid in the Tinnevelly District for the 
 same lands at different sales ascertained from Registration records. 
 
 Shermddevi, Amhdsamudram Taluk. — Survey No. 1343, nunjah 
 acres 0-74, sold in 1865 for Rs. 330, fetched Rs. 1,102-8-0 in 1890. 
 
 Shemhagavamaijadi, Ndnguneri Taluk. — Survey No. 120 (a) and (c), 
 extent acres 0"64, sold in 1866 for Rs. 116, was resold in 1885 for 
 Rs. 200. 
 
 VadakkuvimananaUur, Amhdsamudram Taluk. — Survey No. 634, 
 nunjah acres 0-30, sold in 1868 for Rs. 182, fetched Rs. 275 in 1889. 
 
 Anuppankulam, Sdtdr Taluk. — Punjah field survey No. 9 (h), 
 acres 3-3, sold in 1872 for Rs. 98, fetched Rs. 290 in 1889. 
 
 Oopalasamudram, Amhdsamndram Taluk. — Nunjah field No- 286, 
 8 cents., sold in 1874 for Rs. 50, fetched Rs. 262-8-0 in 1882. 
 
 Shembayavampari, Ndnguneri. Taluk. — Survey No. 51 (h) and 112 
 (c), nuDJah acres 1-21, sold in 1875 for Rs. 297, fetched Rs. 825 in 
 1889. 
 
 Anaikulaut, Srivilliputur Taluk. — Punjah No. 156 ^6), acres 1"95, 
 sold in 1870 for Rs. 50, fetched Rs. 100 in 1879. 
 
 (4) — Table showing the prices paid in the Goimhatore District for the 
 samie lands on the several occasions when they changed hands, 
 ascertained from Registration records. 
 
 1. Anuparpallayam. — 11' 18 acres of punjah lands (survey Nos. 26, 
 37 and 38), were sold in 1860 for Rs. 225 ; a portion of the lands, i.e., 
 survey No. 37, measuring 5'47 acres, was sold in 1882 for Rs. 500. 
 
 2. Kumar a pal a yam. — Survey Nos. 57, 58 and 59 (extent 6'1 acres) 
 of nunjah lands, were sold in 1848 for Rs. 1,200. They were resold 
 in 1877 and 1880 for Rs. 1,900. 
 
 3. Kurichi. — Hnrvey Nos. 370, 452 and 454 (extent acres 8*42 of 
 nunjah lands), sold in 1858 for Rs. 750, were resold in 1887 for 
 Rs. 1,850. 
 
 4. Devarayapmam. — Survey Nos, 55 and 56, acres 8*62 of punjah 
 lands, sold in 1847 for Rs. 200, were resold in 1876 for Rs. 300. 
 
 5. Ranianathapuram. — Survey Nos. 138, 143 and 153, extent 6'97 
 acres of nunjah lands, were sold in 1855 for Rs. 350, A portion of 
 the lands (No. 143) measuring 2'87 acres, was resold in 1876 for Rs. 
 1,300. 
 
 6. Vellalur. — Survey Nos. 225 and 226, extent 9'10 acres of 
 punjah lands, sold in 1849 for Rs. 30-8-0, were resold in 1885 for 
 Rs. 200. 
 
 7. Sanganur. — Punjah land, Nos. 248, 249 and 250, sold in 1863 
 for Rs. 50, fetched Rs. 200 in 1884. 
 
 8. Eumaralingam. — Paimash Nos. 30 and 39, extent 2*2 cawnies, 
 were sold in 1847 for Rs. 225. No. 39 alone was resold in 1876 for 
 Rs. 550 and in 1890 for Rs. 900. 
 
 9. Avalappa.mpatti. — Paimash No. 37, extent 8"14 vallams of 
 punjah land, sold in 1852 for Rs. 716, fetched in 1881 Rs. 1,000. 
 
 10. KaUapuram. — Paimash Nos. 233 and 234, extent cawnies 
 2-14-2, sold in 1872 for Rs. 500, fetched in 1890 Rs. 1,500. 
 
 11. KaUapuram.— Faimash No. 248, sold in 1873 for Rs. 100, 
 fetched in 1890 Rs. 600.
 
 cxlv 
 
 12. Mevadi.-^PsiimSish. Nos. 186, 116 and 38, sold in 1876 for 
 Rs. 600, fetched Rs. 800 in 1890. 
 
 13. JVunjahthothahurichL— Field No. 203, wet acres 0-75, was sold 
 in 1876 and 1880 for Rs. 200 and in 1890 for Rs. 250. 
 
 14. JVunjahthothakurichi. — Field No. 31, wet acres 1"5, was sold 
 in 1876 for Rs. 875 and Rs. 400 and in 1879 for Rs. 550 and Rs. 450. 
 
 (5) — Statement showing the prices of lands per acre in the Coimhatore 
 District, deduced from the statistics relating to applications for 
 transfer of rev emu- registry (extracted from the Coimhatore Dis' 
 trict Manual). 
 
 Years. 
 
 Erode taluk. 
 
 Coimbatore 
 taluk. 
 
 Poimchi 
 taluk. 
 
 Udamalpet 
 taluk. 
 
 Wet. 
 
 Dry. 
 
 f 
 Garden. 
 
 Wet. 
 
 Dry. 
 
 Wet. 
 
 Dry. 
 
 Wet. 
 
 Dry. 
 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 RS. 
 
 1850-51 
 
 23 
 
 9 
 
 69 
 
 
 
 
 
 
 
 1855-56 
 
 32 
 
 3 
 
 31 
 
 
 
 
 
 
 
 1860-61 
 
 111 
 
 7 
 
 39 
 
 
 
 
 
 
 
 1865-66 
 
 222 
 
 14 
 
 80 
 
 
 
 
 
 
 ... 
 
 1870-71 
 
 296 
 
 15 
 
 130 
 
 
 
 86 
 
 20 
 
 271 
 
 23 
 
 1873-74 
 
 
 
 119 
 
 18 
 
 55 
 
 32 
 
 189 
 
 24 
 
 1875-76 
 
 36) 16 
 
 90 
 
 200 
 
 13. 
 
 66 
 
 18 
 
 276 
 
 32 
 
 1878-79 
 
 
 
 109 
 
 11 
 
 92 
 
 30 
 
 633 
 
 24 
 
 1880-81 
 
 285 1 14 
 
 77 
 
 155 
 
 17 
 
 163 
 
 33 
 
 185 
 
 28 
 
 1882-83 
 
 369 15 
 
 99 
 
 136 
 
 7 
 
 208 
 
 33 
 
 241 
 
 30 
 
 (6 — Statement shouiing the average prices of lands per acre in the several 
 talukn of the Ooimhntore District, deduced from the sale-deeds 
 registered in the Registration offics from 1878-79 to 1882-83. 
 
 Taluks and divisions. 
 
 Aravakurchi 
 
 Avandshi 
 
 Bhavani 
 
 Dhirapnram 
 
 Erode 
 
 Karur 
 
 Kollegal 
 
 K&ngydm 
 
 M ettupftlaiy am 
 
 Palladam 
 
 Perundurai 
 
 Poimchi 
 
 Satyamangalam 
 
 Udamalpet 
 
 Average for the district 
 
 Wet. 
 
 Dry. 
 
 Garden. I 
 
 RS. 
 
 RS. 
 
 1 
 
 KS. 
 
 405 
 
 15 
 
 59 
 
 117 
 
 13 
 
 31 
 
 73 
 
 15 
 
 45 
 
 500 
 
 11 
 
 34 
 
 366 
 
 25 
 
 88 
 
 277 
 
 14 
 
 83 
 
 113 
 
 37 
 
 
 100 
 
 16 
 
 78 
 
 123 
 
 8 
 
 55 
 
 .. 1 162 
 
 23 
 
 52 
 
 50 
 
 21 
 
 
 145 
 
 25 
 
 62 
 
 249 
 
 19 
 
 55 
 
 294 
 
 22 
 
 57 
 
 266 
 
 2Ui 
 
 45
 
 cxlvi 
 
 (7) — Statement showing the prices of land per acre in the Kurnool 
 District, deduced from the values entered in the sale-deeds regis- 
 tered in the Registration offices during the years 1882-86. 
 
 Taluks and divisions. 
 
 Kurnool 
 
 Ramallakdt 
 
 Pattikonda 
 
 Pyapali 
 
 Koilkuntla 
 
 Owk 
 
 Sirvel 
 
 Nandyal 
 
 Atmakur 
 
 Nandikdtkur 
 
 Kalwa 
 
 Markapur 
 
 Cumbum 
 
 Giddalur 
 
 Wet lands. 
 
 RS. A. P. 
 
 47 3 2 
 55 4 
 
 42 14 
 54 2 
 60 2 
 
 43 9 
 
 85 1 
 18 15 
 70 14 11 
 220 2 
 47 12 6 
 63 4 
 49 12 11 
 
 All lands. 
 
 RS. A. p. 
 
 10 11 7 
 
 11 4 8 
 6 13 11 
 
 12 2 
 18 11 4 
 23 14 9 
 
 14 2 -5 
 
 22 8 11 
 
 11 10 2 
 
 12 13 3 
 18 8 
 
 15 15 3 
 
 23 7 9 
 21 6 
 
 16 1 3 
 
 (8) — Statement showing the sale value of lands per acre in the Anantapur 
 District, deduced from sale-deeds registered in the years 1878-79 
 to 1885-86. 
 
 Whole district exclusive of Tadpatri 
 Tadpatri taluk 
 Whole district 
 
 Wet. 
 
 RS. 
 
 45 
 82 
 
 47 
 
 Garden. 
 
 RS. 
 
 27 
 61 
 33 
 
 Dry. 
 
 RS. 
 
 6 
 16 
 10 
 
 (e) — Table showing the ratio of Government assessment to gross 
 produce of lands. 
 
 (1) — Statement showing the average outturn of lands 2^6 r acre (Class IV) 
 on which the assessment was based hy the Settlement Department 
 in ike Chingleput District. 
 
 Sorts. 
 
 Wet 3rd group, 
 Madras measures. 
 
 Dry 1st group, 
 Madras measures. 
 
 Remarks. 
 
 1st, Best 
 
 2nd, Good 
 
 3rd, Ordinary 
 
 4th, Inferior 
 
 5th, Worst 
 
 840 
 720 
 600 
 530 
 460 
 
 444 
 
 380 
 
 316 1 
 
 286 
 
 246 
 
 1 
 
 "1 
 » Varagu and ragi. | 
 
 ^ 1
 
 cxlvii 
 
 (2) — Statement showing the value of onttntn per acre, of each sort of land 
 under class IV, for iret and dri/, in the Chingleput District, at the 
 commutation rates adapted by the Revenue Settlement Department. 
 
 
 
 • 
 
 
 
 
 
 
 One-sixth 
 
 
 
 
 
 Value of 
 
 deduction 
 for wet and 
 
 Cultivation 
 
 Remainder. 
 
 Kate. 
 
 
 oiittam. 
 
 one-fourth 
 for di-y lands. 
 
 expenses. 
 
 
 
 
 
 Wet 
 
 
 
 
 
 RS. A. p. 
 
 RS. A. p. 
 
 RS. A. P. 
 
 RS. A. P. 
 
 RS. A. P. 
 
 1st 
 
 27 9 
 
 4 9 6 
 
 11 
 
 11 15 6 
 
 6 
 
 2nd 
 
 23 10 
 
 3 15 
 
 9 12 
 
 9 15 
 
 5 
 
 3rd 
 
 19 11 
 
 3 4 
 
 8 8 
 
 7 14 6 
 
 4 
 
 4th 
 
 17 6 3 
 
 2 14 4 
 
 7 8 
 
 6 15 11 
 
 3 8 
 
 5th 
 
 15 1 6 
 
 .283 
 
 Dry 
 
 6 8 
 
 6 1 3 
 
 3 
 
 1st 
 
 15 8 6 
 
 3 14 1 
 
 5 8 
 
 6 2 5 
 
 "3 
 
 2nd 
 
 13 3 6 
 
 3 4 10 
 
 5 
 
 4 14 8 
 
 2 8 
 
 3rd ... 
 
 10 14 7 
 
 2 11 8 
 
 4 10 
 
 3 8 11 
 
 1 12 
 
 4th 
 
 9 13 3 
 
 2 7 4 
 
 4 6 
 
 2 15 11 
 
 18 
 
 5th 
 
 8 6 1 
 
 2 16 
 
 4 2 
 
 2 2 7 
 
 10 
 
 Note. — The commutation rate for paddy was Rs. 105, for varagu Es. 89, for ragi 
 Rs. 142. The commutation price is taken at 12^ per cent, less than market prices. 
 
 (3) — Statement showing the average yield, the cultivation expeyises and the 
 rent -per acre in the United Kingdom and in the Madras Presi- 
 dency. 
 
 . 
 
 United Kingdom. Madras Presidency. 
 
 Wheat. 
 
 : 1 
 
 Barley. Dry. , Wet. 
 
 Value of produce 
 Cultivation expenses ... 
 
 Rent 
 
 Rates and taxes 
 
 Total ... 
 
 Ratio of I'ent to prodiice 
 Farmer's profit 
 
 £ s. d. 
 
 8 17 
 5 2 2 
 
 £ s. d. 
 
 7 11 9 
 
 4 18 
 
 RS. A. P. 
 
 8 11 
 3 3 10 
 
 RS. A. P. 
 
 25 7 1 
 
 9 8 9 
 
 1 14 9 
 
 2 4 
 
 1 11 1 
 2 3 
 
 13 2 
 
 5 19 
 
 1 17 1 ! 1 13 4 
 
 19-63 20-48 
 1 17 9 1 16 9 
 
 13 2 
 
 1487 
 3 9 11 
 
 5 19 
 
 20-08 
 10 12 7 
 
 1 
 
 Note. — The figures for the United Kingdom were worked out from the statistics 
 published in the Report of the Royal Commission on Agriculture, and those for the 
 Madras Presidency from the Settlement calculations, the produce being valued at the 
 commutation rates assumed by the Settlement Department.
 
 cxlviii 
 
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 . . . . _ ^ 1 
 
 
 Names of Sub-district. 
 
 Kuniarapalaiyam 
 Ganai)atbi 
 
 Gudaliu- 
 
 Mettupalaiyam 
 
 Pollachi 
 
 Anaimalai 
 
 Ud;imalpet 
 
 Dharapuram 
 
 Aravakurichi 
 
 Kariir 
 
 Kodumudi 
 
 Erode ... 
 
 Perundurai 
 
 Bhavani 
 
 Gopichettipalayam 
 
 Satianiangalam 
 
 Avanaehi 
 
 Sulur 
 
 Palladam 
 Kan gay am 
 
 Kol legal 
 
 Coimbatore Kegistrar's 
 Office 
 
 Total . .
 
 cxiix 
 
 (5) — Tables shoiviiKj (},6 cost of Cultivation, Sfc, for an acre of cerfain 
 grains in the Sdttir Taluk of the TiMievelli/ District, publis/ied by 
 the Madras Agricultural Department. 
 
 (a) Gingelly. 
 
 3 ploughings reqniriug 4 pairs ot cattle 
 
 Sowing 
 
 Seed 
 
 I ploughing through the crop, 1 pair 
 
 Heaping, 6 men 
 
 Threshing for 3 days, 6 men 
 
 KS. A. V. 
 
 2 
 
 12 
 
 4 
 
 8 
 10 
 
 1 
 
 Assessment 
 
 Total 
 
 5 
 
 8 
 
 
 
 1 
 
 
 
 
 
 6 
 
 8 
 
 
 
 20 
 
 8 
 
 
 
 14 
 
 
 
 
 
 Value of outturn (l^kotahs or 144 measures 
 at 7 measures a rupee) 
 
 Balance 
 
 (b) Gumbu following cumh%i for a Sanghili or 3*64 acres. 
 
 3 ploughings, 14 pairs of cattle 
 
 So-wing, 4 pairs 
 
 Seed (cumbu, mochai, tattampayaru, kallup- 
 
 payaru, green-gram, castor) 
 Bullock hoeing, 3 pairs 
 Reaping^ 16 men 
 Watching 
 
 7 
 
 
 
 
 
 3 
 
 
 
 
 
 2 
 
 
 
 
 
 1 
 
 8 
 
 
 
 2 
 
 8 
 
 
 
 Total 
 
 1 
 17 
 
 Value of produce — 
 
 6 kotahs of cumbu 
 1 kotah of pulses, &c. 
 4 cart-loads of straw 
 
 48 
 
 7 
 
 12 
 
 Total 
 
 Balance on 1 Sanghili 
 
 Or on one acre 
 
 (c) One Sanghili (3-64 acres) of cumbu after cotton. 
 
 67 
 
 
 
 
 
 50 
 
 
 
 
 
 14 
 
 
 
 
 
 Sowing, 4 pairs 
 Seed ... 
 
 Bullock-hoeing, 3 pairs 
 Reaping, 16 men 
 Watching 
 
 3 
 
 8 
 
 1 8 
 
 2 8 
 1 
 
 Total 
 
 8 8
 
 oi 
 
 Outturn — 
 
 4 kotahs of cumbu 
 3 cart-loads of straw 
 
 Total 
 
 Balance on one Sanghili 
 
 On one acre 
 
 32 
 
 9 
 
 41 
 
 32 8 
 
 9 4 
 
 (d) One acre of cholum grown as a fodder crop. 
 
 Seed, 30 measures 
 Sowings 
 Heaping, 12 men 
 
 Outturn — 
 
 3 cart-loads at Rs. 4-8-0 each 
 
 2 
 12 
 2 
 
 Total 
 
 Balance . , 
 
 (e) One acre of cholum grown as a grain crop. 
 
 4 
 
 12 
 
 
 
 13 
 
 8 
 
 
 
 8 
 
 12 
 
 
 
 3 plougbings, 4 pairs 
 
 Sowing 
 
 Seed 
 
 Ploughing the crop . 
 
 Reaping, 6 men 
 
 Outturn- 
 
 Total 
 
 2 
 
 12 
 
 6 
 
 8 
 
 1 
 
 4 10 
 
 Cholum, 2| kotahs 
 
 > ... • • . 
 
 15 
 
 
 
 
 
 3 cart-loads of straw 
 
 Total ... 
 
 9 
 
 
 
 
 
 
 24 
 
 
 
 
 
 
 Balance . . . 
 
 varagu grown as 
 
 19 
 
 6 
 
 
 
 (f) One Sanghili (3' 64 acres) of 
 
 a mixed 
 
 crop 
 
 3 ploughings 
 
 ,. 
 
 7 
 
 
 
 
 
 Sowing, 4 pairs 
 
 
 
 3 
 
 
 
 
 
 Seed— 
 
 
 
 
 
 Varagu, 24 measures 
 Red-gram, 2| measures . 
 Castor, 2| measures 
 
 
 1 
 
 
 
 
 8 
 6 
 6 
 
 
 0- 
 
 
 Bullock-hoeing, 3 pairs 
 Weeding, 24 women 
 Reaping, 32 men ... 
 Threshing ... 
 
 • • . •• • • 
 
 1 
 2 
 5 
 2 
 
 8 
 
 6 
 8 
 
 
 
 
 
 
 Total 
 
 23 10
 
 oU 
 
 Outturn — 
 
 20 kotahs of varagu 
 
 12 merkals of castor 
 
 1 2 merkals of red-gram . . , 
 
 3 cart-loads of straw 
 
 40 bundles of castor plants 
 
 40 bundles of red-ffram ... 
 
 Total 
 
 Balance for one Sanghili 
 Balance for one acre 
 
 90 
 
 
 
 
 
 5 
 
 
 
 
 
 4 
 
 
 
 
 
 9 
 
 
 
 
 
 2 
 
 
 
 
 
 2 
 
 
 
 
 
 112 
 
 
 
 
 
 88 
 
 6 
 
 
 
 25 
 
 
 
 
 
 (g) One acre of Be)tgal-gr<un. 
 
 2 ploughings, 3 pairs of cattle 
 
 Sowing, 2 pairs 
 
 Sower (1) 
 
 Seed, 7 measures 
 
 Harvesting, 6 men 
 
 Threshing 
 
 Outturn — 
 36 measures 
 
 Total 
 
 Balance 
 
 1 8 
 
 1 8 
 
 3 
 
 12 
 
 1 
 4 
 
 5 
 
 3 
 
 15 
 
 
 
 9 
 
 13 
 
 (h) One acre of hon^e-grnm. 
 
 Seed, 6 measures 
 Sowing, 1 pair 
 Harvesting, 6 men 
 Threshing, 2 men 
 
 8 
 
 12 
 
 10 
 
 6 
 
 Total 
 
 2 10 
 
 Outturn — 
 
 1 kotah of horse -gram 
 6 merkals of castor 
 Stamps and pods . . . 
 
 
 6 
 
 
 
 
 
 * . . 
 
 2 
 
 
 
 
 
 
 1 
 
 
 
 
 
 Total '. . 
 
 . 9 
 
 
 
 
 
 Balance 
 
 6 
 
 6 
 

 
 clii 
 
 (i) One acre of Cotton. 
 
 3 plougKing requiring 5 pairs 
 
 Seed 
 
 Manure (^ of the value of 20 cart-loads) 
 
 Sowing 
 
 3 weedings 
 
 Watching the crop ... ... ..." 
 
 Clearing the plants ... 
 
 Assessment 
 
 Total 
 
 Outturn of uncleaned cotton 1^ podis (of 
 
 328 lb. each) at Rs. 22 a podi 
 
 3 cart-loads of plants 
 
 Total ... 
 
 Balance or profit 
 
 RS. A, p. 
 
 2 8 
 
 4 
 
 1 8 
 
 12 
 
 1 8 
 8 
 12 
 
 7 
 1 
 
 12 
 
 8 
 
 
 
 
 9 
 
 4 
 
 
 
 33 
 1 
 
 
 8 
 
 
 
 
 34 
 
 8 
 
 
 
 25 
 
 4 
 
 
 
 Note (1). The Government assessment of an acre of land as regards (b), (c), (d), 
 (e), (f), (g) and (h) may be taken at one rupee. 
 
 (2). The season in the year to which the outturn given in the above tables 
 relates is reported to have been particularly good. 
 
 (f ) — Remarks on ihe alleged increase in the price of Salt due to 
 the Salt Excise System. 
 
 The evil features of the monopoly system of salt manufacture are 
 the following. 
 
 2. Under the monopoly system the Government undertakes a 
 work for which private agency is better fitted. The Grovernment 
 cannot by means of its officers manufacture salt as cheaply as private 
 individuals^ under the stimulus of self-interest, can. I do not put 
 this on the laissez fairs or any other abstract principle, but on the 
 experienced results of the monopoly system when it was in force. 
 There are certainly cases in which Government can advantageously 
 undertake the supply of services to the community, for instance, 
 the Postal service, the Telegraph, and perhaps in this country 
 even Railways. These are all cases in which the work to be 
 done is spread over such large tracts of country, and is of such in- 
 variable routine character as to make its regulation by general rules 
 issued by a Government department possible and desirable. In these 
 cases, the work done by the officers of the department in different 
 parts of the country is such that the failure or laxity on the part of 
 one of them is liable to immediate detection and exposure by throw- 
 ing out of gear almost instantaneously the work of those similarly 
 employed in other parts. No one will maintain that salt manufacture 
 is a business of this kind. As in agriculture, so in the manufac-
 
 cliii 
 
 ture of salt, profit to the manufacturer depends on the minute 
 attention given to details at every stage of the process of production 
 and on the small and individually almost inappreciable saving in cost 
 effected in a hundred ways. 
 
 3. It may perhaps be argued that even under the monopoly 
 system the Government employs the ryots to manufacture the salt 
 and recognizes to some extent a right of occupancy in these ryots, 
 who may be supposed to have an interest in making as much salt and 
 as cheaply as possible. This, however, is not the case, and it is 
 exactly in this respect that the monopoly system grievously fails. 
 The quantity to be manufactured by each ryot is fixed at the com- 
 mencement of the manufacturing season by a Government officer, and 
 any outturn in excess of the quantity required by Government must 
 be destroyed. The ryot has thus no certainty as to the quantity of 
 salt he will be allowed to manufacture in coming years, or even as to 
 whether he will be permitted to manufacture at all ; for manufacture 
 must be closed if the stocks in the factory in question and adjoin- 
 ing factories are sufficient. He cannot, therefore, look beyond the 
 immediate present in any of his arrangements for carrying on manu- 
 facture and is practically reduced to the position of a labourer paid 
 at a fixed rate on the quantity of salt which the Government chooses 
 to take. The variableness of the seasons renders salt manufacture a 
 somewhat precarious industry ; and the monopoly system makes it 
 still more precarious. 
 
 4. The salt, whether good or bad, must be taken by Government 
 when it is not below a certain standard in quality ; and in years in 
 which the outturn, owing to unfavourable season, is deficient, any salt 
 that is delivered must be accepted. As the Government pays at the 
 same rate for good and bad salt, the incentive to the production of 
 good salt is weakened. It is to the interest of the Government 
 officer having large stocks of bad salt to force it on the public by 
 withholding the sales of good salt until the former are got rid of. 
 This very frequently happened when the monopoly system was in 
 force throughout the Presidency. It is no doubt true that the portion 
 of the population which cares for good salt is at present a small one, 
 but small as it is, it is increasing. Under the monopoly system there 
 is no chance of the taste of the higher classes of the community for 
 good salt at increased prices finding satisfaction, and the result must 
 be that so long as the system is in force, the demand for good salt 
 will be smothered, unless the Government undertakes to supply salt of 
 different qualities at different costs to suit the tastes of the different 
 classes of consumers. This, it is hardly necessary to say, will be a 
 chimerical undertaking and lead to peculation and waste. That any 
 part of the community should be debarred from getting salt of good 
 quality when it is willing to pay for it, is a considerable grievance, and 
 the grievance is all the greater when it is remembered that good salt 
 is really cheap salt too. For instance, A manufactures salt containing 
 96 per cent, sodium chloride and 4 per cent, impurities, while B turns 
 out salt with 99 per cent, chloride of sodium and 1 per cent, im- 
 purities. Under the excise system if each man be allowed to sell the 
 salt at such price as he can get for it, A may realize for his salt 3 
 annas and B 4^ annas over and above the duty of Rs. 2-8-0 paid to 
 
 V
 
 cliv 
 
 Government. As, however, B^s salt contains a little over 3 per cent, 
 more of sodium chloride than A's, the purchaser of A.'a salt saves 
 in duty more than he loses in cost price, and, on the whole, gets a 
 better article for a lower price. Under the monopoly system both 
 kinds of salt would be sold at exactly the same price, 3 annas per 
 maund ex- duty, and the person wishing to obtain by legal means 
 the better kind of salt might chance to obtain it as a matter of favour, 
 but could not get it for money. 
 
 5, The rates of kudivaram, that is, the prices paid by Grovernment 
 for salt delivered to it under the monopoly system, are fixed and to a 
 great extent independent of the changes in the rates of wages for 
 labour prevailing in the particular localities. This would not be a 
 great grievance if the ryots were allowed to regulate production each 
 year according to their own calculations as to probable demand, so 
 that they might recoup the losses of one year from the gains of 
 another. It is true that the rates of kudivaram have sometimes been 
 raised, but this is done only after it is demonstrated to the satis- 
 faction of the higher authorities that the ryots could not possibly 
 manufacture and deliver salt at the rates in force. This is not an 
 easy process. Moreover, there is considerable difference between the 
 costs of salt of pans situated near the platforms and of those at a great 
 distance, the cost of carriage in the latter case being higher than in 
 the former. The Government oflBcers cannot take into account all 
 these differences and increase or decrease the kudivaram in the way 
 in which private manufacturers can. I find from the last annual 
 report of the Salt Department that Messrs. Arbuthnot and Company 
 and other firms who have entered into contracts with manufacturers 
 in the Chingleput factories for short periods have agreed to pay in 
 addition to the fixed kudivaram additional sums varying apparently 
 with reference to the increased cost of manufacture in, or of transport 
 of salt from, particular pans. 
 
 6. The selling of salt at a fixed price whether it is good or bad, 
 light or heavy, gives room for the play of individual preferences or 
 partialities and consequent demoralization of the subordinate officers 
 in the factories. An example will make my meaning clear. It is a 
 well known fact that traders prefer to buy light salt as they can 
 make a greater profit out of it than out of heavy salt ; the reason is 
 that people purchase salt by the measure and light salt measures more 
 
 than heavy salt, the difference being 
 * Note.— It appears from the admin- sometimes * as much as 20 per 
 it'Vsqn Q?^?L of *^« Salt Department ^ rpj^ j f j^ . measure- 
 
 tor 1890-91, that eight lactones in the . i i> • i 
 
 Bombay Presidency have made special ment mstead ot weighment IS 
 arrangements for the production of light sometimes erroneously ascribed to 
 salt in order to meet the demand for it ^j^g machinations of traders who 
 m this Presidency. , , r>j i t • • 
 
 seek to earn a profit by deceiving 
 ignorant purchasers and giving them short weight. Traders do, no 
 doubt, sometimes take undue advantage of the ignorance of pur- 
 chasers, but in this instance it seems to me probable that even if 
 they reformed their ways and attempted to sell by weighment, the pur- 
 chasers who have long been accustomed to purchase by measure- 
 ment would imagine that fraud was intended and would not take the 
 salt. However desirable it may be that salt should be retailed by
 
 olv 
 
 weight and not by measurej any attempt to bring about this result 
 by coercive measures, rendering penal the sale of salt by measure 
 in the thousands of petty bazaars throughout the Presidency, will 
 be attended with great risk of oppression to the poorer classes of the 
 population whose interests are intended to be safe-guarded ; and the 
 Government cannot undertake legislation of this kind with a light 
 heart. This question is intimately connected with the scheme for 
 the introduction of greater uniformity in the measures and weights 
 in use in this Presidency, which, I believe, is now under the consider- 
 ation of Government. If it is decided to take action in this direction, 
 the measure will, I presume, be adopted tentatively in the larger 
 towns at first and gradually extended to rural tracts, the duty of 
 enforcing the regulations prescribed being entrusted to popular 
 bodies, such as Municipal Councils and Local Fund Union Panchayats. 
 However this may be, there is the fact that light salt finds greater 
 favour with the trade than heavy salt, and this fact gives the former 
 a higher \alue. Under the monopoly system, it was in the power of 
 the subordinate ofiicers of the department to sell the light salt to 
 their friends and benefit them, while heavy salt fell to the lot of 
 others. No doubt the heaps were sold in the order of the numbers 
 assigned to them, but information as to which heaps contained light 
 salt was not easily procurable by all intending purchasers, and it 
 would be nothing strange if particular persons succeeded in getting 
 the light salt to the exclusion of others. It comes then to this, viz., 
 that, whereas under the monopoly system the additional, it may be 
 adventitious, value borne by light salt was appropriated either by 
 accident or by design by certain favored persons among purchasers, 
 under the excise system it is enjoyed by the person who is justly 
 entitled to it, viz., the producer. 
 
 7. While the monopoly system on the one hand throws upon 
 Government the serious responsibility of adjusting supplies^ to demand 
 with reference to the evershifting conditions of trade, it deprives 
 Government of the only means of judging whether and when, such 
 an adjustment is necessary, as it substitutes an artificial for a natural 
 price which, under ordinary circumstances, serves as an unerring 
 index pointing to the necessity of increasing or contracting supplies. 
 This is an evil of great magnitude, and now that owing to the 
 extension of communications and the cheapening of the cost of 
 carriage, almost all parts of the country have been brought into trade 
 relations with one another and rendered sensitive to trade influences, 
 it seems to me to be perfectly idle for a Government department to 
 undertake the duty of regulating salt production. To put the same 
 thing in another way. The salt trade cannot be isolated from trade 
 in other commodities, because salt is generally brought inland as a 
 return load by traders who take grain or other articles to the coast, 
 and a change in the demand for those articles reacts on the demand 
 for salt. In private trade under natural conditions the adjustment 
 of supplies to demand is automatic, that is to say, traders and 
 manufacturers who may know nothing about the causes in tho 
 changes in the conditions of supply and demand all over the country 
 of any commodity, set about making arrangements for increasing or 
 diminishing supplies by simply taking as their guide the rise or fall
 
 ClVl 
 
 in prices. The Government ofi&cers would need to be almost omnis- 
 cient to perform this function eflBciently without the aid afforded by 
 the natural course of prices. 
 
 8. The Government by selling salt produced at different places at 
 a uniform price, without reference to the cost of production or the 
 conditions of demand and supply, bolsters up inferior factories and 
 handicaps the better sources, the result being on the whole increase 
 in the cost of salt and loss to the community. 
 
 9. The monopoly system has not the effect of steadying prices, as 
 is commonly believed. On the contrary, though under it salt is sold 
 at a uniform price when it leaves the factory, outside the factory the 
 prices are subjected to fluctuations all the more violent, because the 
 factory price is kept down at an artificial level. The result is that 
 the trader benefits at the expense of the producer, except in cases in 
 which both occupations are combined in the same person. The truth 
 of the above observations will be seen from the following example. 
 Take 3 factories A, B and C, at a distance of 20 miles from each 
 other north to south. When there are sufficient stocks in these 
 factories and the facilities of communications are equal, each factory 
 will snpply all places within a distance of 10 miles north and south, 
 besides tracts which are at less distance from it than from other 
 factories. If stocks are deficient in A and the demand great, and 
 Government continue selling salt at 3 annas a maund, there is sure 
 to be a run on the factory. When the salt is all sold out, traders from 
 A and the regions supplied by it will have to go to B, and though 
 they may get the salt at 3 annas a maund, the cost of carriage will 
 have increased. Meanwhile the factory at A having been denuded 
 of salt, the retail prices at that station will have enormously risen. 
 Under the excise system what would happen is this. When the 
 stocks in A are insufficient to meet the demand, the price of salt in A 
 will rise to such an extent as to make it profitable for traders in some 
 of the tracts served by A to go to B for the salt. This will again 
 affect the price in B and then in C and so on all along the line. The 
 result is that no factory will be absolutely denuded of salt, producing 
 panic and violent perturbations in retail prices, but stocks will be 
 conserved as long as practicable, a diversion of trade being effected in 
 various directions. 
 
 10. The above remarks, I repeat, are not based merely on theoretic 
 considerations, but on actual experience. The report of the Salt 
 Commission and the annual reports of the administration of the Salt 
 Department are full of instances of factories having been denuded of 
 salt in the manner pointed out. 
 
 11. In view of the grave evils inherent in the monopoly system, 
 we should be justified in giving preference to the excise system, even 
 if it were attended with some increase of price to the consumer ; but 
 has there really been an increase of price and over what ? The cost 
 price under the monopoly system has been assumed to be 3 annas for 
 the last 30 years, and this rate has acquired in popular estimation 
 a sort of prescriptive right to be regarded as the normal cost not- 
 withstanding changes in the rates of wages, in the value of money, 
 and in the conditions of trade. Even when the Salt Commission
 
 clvii 
 
 made their calculations, the cost of salt in Madras was found to be 
 more than 3 annas a maund, and salt was sold by Government at the 
 Madras dep6t really at a loss. Assuming, however, for the sake of 
 argument, that 3 annas correctly represented the cost price of salt at 
 the time when the monopoly system was displaced by the excise, it 
 will be seen that no fair comparison can be made between that rate 
 and the present excise prices without taking the following considera- 
 tions into account and making due allowances for them : — 
 
 1st. — Since 1881 the sales of salt in consequence of demand from 
 tracts outside the Presidency, chiefly Orissa, and increase of popu- 
 lation which amounts to 15'6 per cent., have increased from 56 to 
 69 1 lakhs of maunds or by 24 per cent., while the number of factories 
 at work was greatly reduced shortly before 1881. The increased 
 produce would to some extent have had to be raised at more than 
 proportionate cost, even if the monopoly system had been continued 
 throughout the Presidency. That this must be the case is clear 
 from statements contained in the administration reports of the Salt 
 Department which go to show that the oflBcers of the department find 
 very great difiiculty in procuring labour for working the extensions 
 of factories recently sanctioned. 
 
 2nd. — The prices of excise salt include three items of charges 
 which the monopoly rate of 3 annas excludes, though these charges 
 fall eventually on the consumers under either system. The items 
 are — 
 
 (a) The additional price paid to the producer at the factory 
 instead of to the trader on account of the inadequacy of stocks to 
 meet the demand as pointed out in paragraph 9 supra. 
 
 (6) The additional price paid for light salt (paragraph 6 supra). 
 
 (c) The additional price paid for good salt (paragraph 4 supra). 
 
 For example, the price of excise salt at Surl4 in the Ganjam 
 district was 4 annas 3 pies a maund in 1890-91. The high price was 
 due to the restriction, owing to insufficient stocks, of inland sales at 
 Ganjam (which by the way is a monopoly factory) and the consequent 
 diversion of trade to Surla. Salt at Ganjam is sold by Government at 
 a fixed price of 4 annas {not 3 annas), and sales are allowed only on 
 certain days and in restricted quantities to prevent depletion of stocks. 
 The consequeuce is that traders have to go to Surld and get their salt 
 at an enhanced price incurring probably enhanced cost of carriage at 
 the same time. All this enhanced cost is recouped by the traders by 
 enhancing the price of salt to the consumers whether the salt has 
 been obtained from Ganjam or Surld. Nevertheless the factory price 
 of a maund is only 4 annas at Ganjam, while that at Surld is 4 annas 
 3 pies, and this shows that the factory price of excise salt may be 
 higher than the monopoly rate though really the price paid by the 
 consumer may be less under the former than under the latter system. 
 Examples of cases of salt commanding higher or lower prices accord- 
 ing as they are light or heavy abound in the Madras dep6t, where 
 the price of salt varies from 4 to 7 annas a maund. The reason for the 
 preference for light salt has already been explained. In the Madras 
 retail market also salt is sold at different prices with reference to the 
 quality of the article.
 
 olviii 
 
 12. What after all is the increase of cost of excise salt at present? 
 The cost is 4 annas a maund for the whole Presidency as compared 
 with the hypothetical 3 annas under the monopoly system. In the 
 Masulipatam division it is only 2 annas 8 pies. It seems to me that, 
 making sufficient allowance for the considerations above pointed out, 
 prices are really cheaper now than under the monopoly system. A 
 comparison of retail prices in 1889 with the prices before 1880 shows 
 that retail prices are in most places lower now than under the monopoly 
 system. Moreover, a difference of one anna per maund of 80 lb. 
 makes no difference in retail prices, as these are quoted at so much 
 per Madras measure of say 4 lb., and the increase of one anna per 
 maund would be equivalent to only an increase of price of a Madras 
 measure by less than one-half of a pie. This fact should be borne in 
 mind in judging of the real effect of a sudden temporary pressure of 
 demand on inadequate stocks and consequent rise of prices, which 
 pressure of demand, be it noted, must happen quite as frequently as, 
 if not more frequently, under the monopoly than under the excise 
 system. 
 
 13. It is now unnecessary to advert to the circumstances which 
 led to the enhancement of the price of salt in 1885 and 1886, soon 
 after the introduction of the excise system. The causes of the rise 
 in price were fully investigated by Government in 1888, and though 
 the views of the Salt Department have been at variance with those of 
 Government on this subject, I am not aware that a single argument 
 has been brought forward tending in any way to shake the conclu- 
 sions arrived at by Government after full enquiry. As regards the 
 measures adopted by Government to remedy the evils that had arisen, 
 there can be but one opinion, viz., that the measures have been emi- 
 nently successful. The retail price of salt to the consumer has not 
 increased beyond what it was under the monopoly system. On the 
 contrary, if an exact calculation were possible, it would probably be 
 found that prices have gone below what they would be at the 
 present time under the monopoly system. A fairer distribution of 
 profits between the manufacturers and the traders has been 'brought 
 about and the profits of middlemen have to some extent been cut 
 down. The old argument that capitalists restrict production has been 
 shown to be entirely unfounded, the " dittam '' or regulation of the 
 quantity manufactured being now found to have been fixed with a 
 view to secure the maximwin production and not with a view to restrict 
 it. Many licensees work their salt pans independently of capitalists 
 and store and sell salt on their own account. There is full competi- 
 tion among the capitalists themselves. This, I believe, is the case 
 even in Madras where the average price is 5 annas 2 pies a maund. 
 Salt at this station always costs more than the monopoly price of 3 
 annas, and the additional 2 annas and 2 pies includes this excess as 
 well as the extra value of light as well as of good salt as already 
 explained. I do not think therefore that any material reduction in 
 the price of salt at Madras can be looked for. 
 
 14. The monopoly system is sometimes defended on the ground 
 that as the Government levies on salt a duty amounting to nearly 20 
 times the cost price, it is bound to see that the cost to the consumer is 
 not unduly enhanced. The assumption underlying this statement is
 
 olix 
 
 that under tlie monopoly system it is possible for Government to 
 have control over the price of salt. This assumption, as I have 
 above shown, is unfounded. It seems to me that if the salt tax 'is 
 an evil, it is an aggravation of that evil to levy it under the monopoly 
 system. The Government has, however, with a view to prevent an 
 undue enhancement of price by combinations of traders, accumu- 
 lated reserve stocks, and these stocks have completely fulfilled their 
 purpose. The necessity for this arrangement arose from the sudden 
 substitution of the excise for the monopoly system which was in 
 existence for over three-quarters of a century, and I believe that 
 in the course of a few years more, their maintenance will be found 
 to be. unnecessary. The object is not to drive capitalists out of the 
 salt trade ; what is desired is that there should be sufiicient competi- 
 tion among them. There is not likely to be any danger of extensive 
 combinations among the capitalists, such as that which arose at 
 Madras in 1885 and 1886 under very special circumstances. Tempo- 
 rary local combinations may of course occasionally occur, but their 
 effect will be evanescent. The danger now seems to be rather in the 
 direction of Salt Department imposing unnecessary restrictions on the 
 prices charged by salt manufacturers or of bringing the reserve stocks 
 to sale with a view to reduce prices below what they would be under 
 natural conditions when there is full competition, instead of keeping 
 the reserve for use as a heroic remedy on extraordinary occasions, 
 such as, for instance, would justify Government in importing grain to 
 tracts sufi'eriug from distress. Government reserve stocks under the 
 excise system, though objectionable on principle and justifiable only 
 as a temporary expedient to repair mistakes committed in the past, 
 have not practically operated to the prejudice of the excise manu- 
 facturers, because the Government has not hitherto interfered with 
 the course of salt trade and has allowed traders a large range of 
 prices to base their calculations upon. The loss incurred by Govern- 
 ment by maintaining the stocks is also very trifling when compared 
 with the revenue derived by Government from the salt duty. If, how- 
 ever. Government were to enter into direct competitioa with excise 
 manufacturers, it would simply lead to the extinction of the excise 
 and to the rehabilitation of the monopoly system, which is a consum- 
 mation greatly to be regretted in the interests of the public for the 
 reasons I have already explained. 
 
 15. There are three conditions essential for the proper working of 
 the excise system, viz., first, the restrictions imposed on manufacturers 
 should nofc be greater than are absolutely necessary for the protection 
 of the revenue ; secondly, there should be no obstacles interposed to 
 the opening of new pans, and additional storage room should be 
 provided on a liberal scale under adequate guarantees in all factories ; 
 thirdly, small traders should receive the same countenance and 
 assistance as large traders from both salt and Railway officials when 
 they want to purchase salt and send them by the railway. I do not 
 know what the policy of the Salt Department in respect of these 
 matters latterly has been, but I have no doubt that, if they are looked 
 at from the point of view of the convenience of the producers as well 
 as of the Salt Department and adequately provided for, the excise 
 system will in the course of a few years be able to stand on i^'-a own
 
 olx 
 
 legs, and to dispense with the artificial support of Government reserve 
 stocks. The completion of the East Coast and other railways now in 
 progress will also materially help to bring about this result. The 
 excise system has now justified itself and what is wanted for its com- 
 plete success is a continuity of policy. If this is ensured^ there is no 
 reason why Madras should not secure a large share in the Bengal salt 
 trade, driving out Liverpool salt from thence. The question of substi- 
 tution of excise for G-overnment monopoly was first mooted by the 
 Cheshire Salt Chamber of Commerce, in the hope that a market might 
 thereby be opened in Madras for their salt, and the prejudice against 
 the excise system is to some extent due to this circumstance. The 
 probability, however, is that Madras salt will eventually driye out 
 English salt from Bengal. Salt is sent from England to Bengal as 
 ballast, but if a trade springs up between Madras and Bengal in 
 Bengal coal, it would be profitable to send Madras salt as a return 
 load. The Government would do well to do all that lies in its power 
 to develop an export trade in Madras salt, and this can be done only 
 under the excise system. If the English salt syndicate persists in 
 artificially raising the price of English salt shipped to Bengal, it would 
 be materially assisting the Madras manufacturers to compete in the 
 Bengal market. Germany, Aden and Arabia have been sending salt 
 to Bengal during the last 3 or 4 years ; and Madras, which is so much 
 nearer to Bengal than these countries and has so many facilities for 
 the manufacture of good salt, ought, under proper arrangements, to 
 be able to secure to itself the bulk of the Bengal salt trade. 
 
 Statement No. I. 
 
 Quantity of salt manufactured and sold and the balance reynaining in stock in the 
 East Coast factories in each year from 1881-82 to 1890-91. 
 
 In lakhs of maunds. 1 maund = 82|- lb. 
 
 Years. 
 
 1 
 
 j Manufac- 
 ture. 
 
 Sale. 
 
 Stocks 
 
 at the end 
 
 of each year. 
 
 1881-82 
 1882-83 
 1883-84 
 1884-85 
 1885-86 
 1886-87 
 1887-88 
 1888-89 
 1889-90 
 1890-91 
 
 
 
 60-42 
 66-54 
 69-83 
 74-87 
 67-20 
 48-40 
 88-67 
 89-94 
 92-42 
 87-23 
 
 56-00 
 62-55 
 65-35 
 64-89 
 67-34 
 65-91 
 68-24 
 70-69 
 71-58 
 69-60 
 
 75-89 
 76-44 
 63-28 
 67-08 
 61-27 
 28-04 
 47-03 
 63-26 
 80-21 
 94-20
 
 clxi 
 
 Statement No. II. 
 Average factory price of salt per maund. 
 
 
 1885-86. 
 
 1886-87. 
 
 1887-88. 1888-89. 
 
 188£ 
 
 -90. 
 
 1890-91. 
 
 
 AS. P. 
 
 AS. P. 
 
 AS. P. 
 
 AS. P. 
 
 AS. 
 
 p. 
 
 AS. P. 
 
 Chatrapur 
 
 3 2 
 
 3 5-7 
 
 6 0-6 
 
 5 10-9 
 
 4 
 
 1 
 
 4 3-6 
 
 Chicacole 
 
 3 6-6 
 
 4 5-6 
 
 9 2-6 
 
 6 9-8 
 
 4 
 
 3 
 
 3 11-5 
 
 Masulipatam 
 
 3 6-6 
 
 4 9-5 
 
 4 11 09 
 
 3 11-2 
 
 3 
 
 3 
 
 2 8 
 
 Nellore . . 
 
 3 
 
 3 9-9 
 
 3 3-6 
 
 3 6-7 
 
 3 
 
 7 
 
 3 6-3 
 
 CMngleput 
 
 5 4-8 
 
 6 8-2 
 
 6 3-2 
 
 5 4-1 
 
 5 
 
 2 
 
 5 0-5 
 
 Negajjatam 
 
 3 10-9 
 
 7 1-0 
 
 6 2-2 
 
 4 11-6 
 
 4 
 
 3 
 
 4 5 
 
 Tinnevelly 
 
 5 0-9 
 
 6 1-0 
 
 6 1-7 
 
 4 4-3 
 
 4 
 
 3 
 
 3 7 
 
 Average . . 
 
 
 5 7-3 
 
 6 1-1 
 
 4 9-8 
 
 4 
 
 4 
 
 4 0-2 
 
 Note. — The excise system was introduced in a small number of factories in 1882-1884. 
 In 1885-86 the system was brought into force in nearly all the Madi-as factories. The 
 season in 1885-86 and 1886-87 was unfavorable for salt manufacture, and the outturn in 
 those J' ears was very small as compared with the ordinary outturn. The result wag 
 depletion of stocks and consequent enhancement in the price of salt , 
 
 Statement No. III. 
 Retail price of salt in seers of 8 tolas per rupee. 
 
 
 1879. 
 
 1 
 
 ! 1880. 
 
 1 
 
 1889. 
 
 1890. 
 
 Ganjam 
 
 11-85 
 
 11-81 
 
 12-33 
 
 11-40 
 
 Vizagapatam . . . . . . j 
 
 10-24 
 
 10-58 
 
 11-69 
 
 11-70 
 
 Godivari 
 
 12-54 
 
 11-98 
 
 12-00 
 
 12-01 
 
 Kistna 
 
 12-91 
 
 12-80 
 
 13-19 
 
 13-11 
 
 Nellore 
 
 12-70 
 
 12-60 
 
 12-34 
 
 12-80 
 
 Cuddapah 
 
 13-89 
 
 13-92 
 
 12-34 
 
 12-20 
 
 Anantapur 
 Bellary . . ■ 
 
 12-95 
 
 12-81 
 
 / 11-14 
 I 11-87 
 
 11-60 
 11-90 
 
 Kumool 
 
 12-06 
 
 12-63 
 
 11-36 
 
 11-50 
 
 Madras 
 
 13-88 
 
 13-75 
 
 12-31 
 
 13-00 
 
 North Arcot 
 
 12-12 
 
 12-33 
 
 11-31 
 
 11-40 
 
 South Arcot 
 
 14-09 
 
 14-28 
 
 11-58 
 
 11-60 
 
 Tanjore 
 
 12-27 
 
 12-52 
 
 12-62 
 
 12-80 
 
 Trichinopoly 
 
 12-20 
 
 1213 
 
 12-46 
 
 12-42 
 
 Madura 
 
 13-80 
 
 13-64 
 
 13-47 
 
 13-48 
 
 Tinnevelly 
 
 13-95 
 
 14-74 
 
 14-68 
 
 14-80 
 
 Coimbatore 
 
 11-78 
 
 12-12 
 
 11-98 
 
 12-50 
 
 Salem . . 
 
 11-82 
 
 11-94 
 
 13-43 
 
 13-28 
 
 South Canara 
 
 11-55 
 
 11-51 
 
 13-17 
 
 13-50 
 
 Malabar 
 
 10-55 
 
 9-79 
 
 11-69 
 
 11-70 
 
 Average .. 
 
 12-48 
 
 12-52 
 
 12-35 
 
 12-44 
 
 Note. — From January 1878 to 10th March 1882, the duty on salt was Rs. 2-8-0 a 
 maund, and on the latter date it was reduced to Es. 2 a maund. The duty was again 
 raised to Rs, 2-8-0 in January 1888 and continues at this rate at present.
 
 clxii 
 
 ^g^ — Remarks on the Ahkdri Administration of the Madras Presidency. 
 
 The principles formulated by the Secretary of State for India in 
 regard to abkdri administration and accepted by the House of Com- 
 mons during the recent debate on this question are stated in the letter 
 of the Government of India of 16th May last to be as follows: — 
 
 (1) Any extension of the habit of drinking among Indian popu- 
 
 lations is to be discouraged. 
 
 (2) The tax on spirits should be as high as may be possible with- 
 
 out giving rise to illicit methods of making and selling 
 liquor. 
 
 (3) Subject to the above considerations, a maximum revenue 
 
 should be raised from a minimum consumption of intoxica- 
 ting liquors. 
 
 2. The discouragement of drinking is thus the primary object 
 aimed at in abkdri arrangements. A total prohibition of the consump- 
 tion of liquors among classes of people addicted to the use of them 
 would, however, cause great hardship and be incapable of enforcement 
 even if desirable. The drinking classes in such a case would almost 
 to a certainty supply themselves with liquor by illicit distillation and 
 smuggling, and get demoralized by law-breaking as well as drinking. 
 The object in view is therefore sought to be attained by subjecting 
 liquors to a high duty, so high as to act as a check on consumption, 
 and yet not so high as to caase an outbreak of illicit distillation or 
 smuggling, which cannot be coped with except by employing preven- 
 tive establishments at enormous cost. The limit of taxation which 
 satisfies the above conditions is not the same in all places but varies in 
 different places, and even in the same place at different times, accord- 
 ing to idiosyncrasies of race, taste and lawless habits, climatic differ- 
 ences, efficiency of prevention, facilities for illicit distillation and other 
 circumstances ; and the problem of excise administration consists in 
 finding this limit for the different parts of the country and ad j usting 
 the duty with reference to it. 
 
 3. Revenue is not to be the main object in abkdri arrangements, 
 that is to say, it is not to be developed by lowering the duty and 
 extending consumption of intoxicating liquors, but by enhancing the 
 duty and restricting consumption. Subject to this condition, it is a 
 desirable object to develop the revenue (1) by pushing up taxation to 
 the limit already referred to, (2) by taking care that as little of the 
 realizable revenue as possible is diverted from the coffers of the State 
 and absorbed by middlemen or others to whom privilege of sale, &c., 
 of liquors may be granted. The taxation of liquors has this great 
 advantage over other forms of taxation of commodities in general 
 consumption, viz., that while the latter are objectionable in that and in 
 so far as they restrict consumption, the former is beneficial for that 
 very reason. 
 
 4. The following facts will show that the principles and considera- 
 tions above adverted to have been steadily kept in view in all abkdri 
 arrangements in this Presidency during the last 15 or 20 years, and 
 that this Government may justly claim to have attained, in spite of 
 difficulties met with at the outset, a very considerable measure of 
 success in the application of those principles.
 
 oixui 
 
 6. The Presidency contains an area of about 140,000 square miles 
 with a population of nearly 31 millions. Of this area about 20,000 
 square miles, containing a population of nearly a million, comprise 
 what are called the Agency tracts in the Ganjam, Vizagapatam and 
 Goddvari districts. These tracts are hilly and jungly and inhabited 
 by uncivilized, wild races ; and it is not open to Government to adopt 
 scientific methods of administration in these places. Throughout the 
 Agency tracts, toddy (fermented palm juice) is now left untaxed. 
 During the Rumpa rebellion in 1880, the oppressions of the toddy 
 renters was alleged as one of the reasons for the emeute. In Ganjam, 
 Khonds are allowed to distil spirits for domestic consumption and not 
 for sale. It was at one time thought that Uriya distillers in the 
 Khond country were spreading drunkenness among the Khonds and 
 steadily and surely winning their lands; and they (Uriyas) were pro- 
 hibited from distilling or selling liquor there. Recent reports from 
 the Collector, however, show that the Khonds do not distil liquor 
 themselves, but employ clandestinely Uriya distillers to manufacture 
 for them and that the prohibition above referred to has given rise to 
 considerable illicit traffic in liquor. The question of allowing Uriyas 
 to distil under proper safeguards and strict control is now under the 
 consideration of the Abkdri department. In Vizagapatam the Abkdri 
 privileges in some of the tracts are leased out to contractors, and in 
 others kept under amani management, that is to say, the supply and 
 sale of liquor is made under the supervision of Government officers. 
 In the Rumpa country in the Godavari district little or no spirit is 
 consumed. In some of the other Agency villages in this district the 
 privilege of sale of spirit is leased out to contractors ; in others again 
 to the villagers themselves for lump sums. It will not be possible to 
 control the traffic in liquor in the Agency tracts on the principles laid 
 down by the Secretary of State, and these tracts must be put aside so 
 far as the present inquiry is concerned. There is, however, no reason 
 to think that drunkenness is on the increase in these regions. 
 
 6. Confining our attention to the portions of the Presidency (com- 
 prising an area of nearly 120,000 square miles with a population of 
 about 30 millions) in which it is practicable to regulate the taxation of 
 liquor on the principles laid down by the Secretary of State, the 
 following very brief account will show the steps taken during the last 
 20 years for introducing sound methods of abkdri administration. The 
 liquors principally drunk in this Presidency are, 1st, country spirits, 
 2ndly, imported liquors and liquors manufactured in the country and 
 excised at the customs rate of duty and otherwise dealt with for pur- 
 poses of taxation in the same manner as imported liquors, and, 3rdly, 
 toddy or fermented palm juice. 
 
 7. Country spirits consumed are distilled either from jaggery 
 (crude sugar) or toddy (palm juice). Toddy spirit is in use in the 
 Goddvari, Malabar and South Canara districts and in the coast taluks 
 of the Kistna district and the two taluks of the Kurnool district east 
 of the Nallamalai hills, viz., Cumbum and M^rkdpur, In some of the 
 plain taluks of the Vizagapatam district spirit distilled from mowha 
 flowers (Bassia latifolia) and also spirit distilled from rice are con- 
 sumed. In the remaining portions, jaggery spirit is drunk.
 
 clxiv 
 
 8. I'wenty years ago, the systems of abkdri administration in force 
 were very primitive and the privilege of manufacturing and selling 
 spirits in large areas, usually districts, was leased out to contractors 
 for lump sums, and the spirit was manufactured in stills scattered all 
 over the country according to the rude methods and appliances in use 
 among native distillers. The liquor was sold in sanctioned shops, but 
 practically there was no limit to the number of shops that might be 
 opened. In accordance with the provisions of the Abkdri Act, a 
 minimum price was no doubt fixed below which liquor could not be 
 sold, but as the minimum price was fixed without any reference to the 
 alcoholic strength of the liquor sold, it was of no use whatever. In 
 short, there was no attempt made to regulate taxation or to ascertain 
 and control consumption, and contractors were practically allowed to 
 do what they liked in the way of extending consumption. 
 
 9. The obvious remedy for this state of things was the substitution 
 for the renting system of an arrangement under which out-stills could 
 be suppressed and manufacture concentrated in large distilleries easily 
 guarded, the revenue being realized by a duty of excise adjusted with 
 reference to alcoholic strength on every gallon of spirit issued there- 
 from. Before, however, this system of central distilleries, known 
 locally as the " excise system,'' could be introduced into any particular 
 district, it was necessary to make sure of two conditions, viz., 1st, 
 that when out-stills were suppressed distillers able and willing to 
 construct the necessary buildings and manufacture spirit cheaply on a 
 large scale by using scientific methods and appliances would be forth- 
 coming, and, 2ndly, that the expenses of distribution of liquor from 
 a central distillery to the outlying parts of districts in which facilities 
 for illicit distillation were great did not so enhance the cost of liquor 
 to the consumers as to drive them to supply themselves with it 
 illicitly. 
 
 10. Accordingly, "the excise system'' was first experimentally 
 tried in selected districts between the years 1869 — 74. The results 
 showed that no difficulty was likely to be experienced in finding dis- 
 tillers, provided that the areas over which they were given the 
 privilege of selling liquor were sufficiently extensive to enable them to 
 do a large business. In 1875-76, the ''excise system" was intro- 
 duced into further portions of the Presidency with certain modifica- 
 tions, the chief of which was that the distiller or contractor who was 
 given the monopoly privilege of manufacture and sale within a 
 district was required to guarantee a minimum revenue from the duty 
 leviable on the spirit issued for consumption, the object in view being 
 to prevent his making all his profit in the easily manageable portions 
 of his farms, leaving the distant outlying portions to the illicit 
 distiller and the smuggler. The contractor was charged with the 
 duty of maintaining sufficient establishments to prevent illicit practices 
 and smuggling. He was bound to sell the spirit at certain maximum 
 and minimum prices prescribed by Government. The minimum limit 
 was intended to prevent the contractor lowering the price to such 
 an extent as to unduly extend consumption, and the maximum limit 
 to prevent his running up the price so high in particular localities as 
 to cause hardship to the drinking classes and drive them to illicit 
 practices in obtaining supplies of liquor. The minimum prices were
 
 fixed in sucli a manner as to leave a reasonable profit to the contractor 
 after paying the duty and defraying the cost of liquor, of distillation, 
 of establishments, of remuneration to vendors, &c., according to an 
 assumed standard, and the maximum prices were fixed somewhat 
 higher so as to leave a margin for the contractor to enable him to 
 adapt prices to the actual circumstances of the different parts of his 
 farm. 
 
 11. The concentration of distillation and the introduction of the 
 guaranteed revenue system, as the system above described was called, 
 was easy in all districts in which jaggery spirit was consumed, and it 
 was extended in 1875 and 1878 to all the districts of the Presidency 
 excepting those mentioned in paragraph 7 as districts in which toddy 
 spirit is chiefly drunk. In the inland taluks of the Vizagapatam dis- 
 trict in which mowha spirit is drunk, the excise system was introduced 
 in 1875, but was withdrawn in 1878 as it did not work well there. 
 
 12. The guaranteed revenue system (which is still retained in 
 Bombay) was in force until 1884-85, when the abkdri arrangements 
 were again completely remodelled with reference to the recommenda- 
 tions of the Abkdri Committee, which was appointed by Government 
 in 1884. It was found that this system had done its work in the way 
 of introducing and familiarizing native distillers with improved 
 methods and appliances in the manufacture of spirit, but was operat- 
 ing prejudicially to sound abkdri administration in other respects. 
 Its failure was mainly attributable to three causes, viz., first, the large 
 size of the farms generally comprising entire districts, which shut out 
 all but the largest capitalists from the competition for the contracts, 
 and enabled a few rich European firms to combine to keep down the 
 bids for the guaranteed revenue, and to make unduly large profits 
 from the more easily managed portions of the farms, neglecting 
 altogether the outlying parts ; secondly, the realization of the revenue 
 wholly in the shape of a uniform fixed duty throughout the farms 
 without regard to the often widely varying conditions of the tracts 
 comprised within them, and the artificial regulations imposed by 
 Government as regards retail prices of liquor, which, as already 
 observed, were based on hypothetical data as regards cost of liquor 
 and other items liable to considerable fluctuations in different tracts 
 of country and from year to year ; and, thirdly, the entrusting to the 
 contractors the duty of maintaining sufficient establishments for tbe 
 prevention of illicit distillation, while at the same time no police 
 powers were or could be conceded to these establishments which were 
 not under ofiicial control and discipline. The large monopolists had 
 very generally neglected to maintain the establishments they were 
 bound to employ or to provide adequate facilities for the supply of 
 liquor to the more difficult and less accessible portions of their farms ; 
 they had closed large numbers of shops previously existing, and in 
 the remaining shops they had cut down the allowance of the retailers 
 to such an extent as to drive them to seek their remuneration in 
 illicit practices, such as giving short measure, dilution, &c. ; and by 
 chai'ging the maximum prices in the populous portions of the farms 
 and spending as little as possible on their management, they had 
 reaped enormous profits, a very considerable portion of which should, 
 under proper arrangements, have come to Government in the shape
 
 clxvi 
 
 of taxation. The result was a considerable decline in the revenue^ 
 while at the same time there was reason to suppose that the real con- 
 sumption had increased and not decreased. 
 
 13. The object of the reforms initiated in 1884 was to provide a 
 remedy for these evils. To ensure sufficient personal attention being 
 paid by the renters to all parts of the farms and to admit of the smaller 
 capitalists with local knowledge competing for them, the size of the 
 farms had to be reduced ; but as it would, at the same time, have been 
 distinctly a retrograde step to allow small renters to establish stills of 
 their own for the supply of tracts served by central distilleries, the 
 expedient was adopted of separating the privileges of manufacture and 
 sale, which had hitherto been leased out conjointly. As regards the 
 former, the policy has been to leave the manufacture and supply of 
 spirits to licensed vendors " free " wherever possible, that is to say, to 
 make it cease to be a monopoly and to permit any one, who chooses 
 to embark in the business of distillation, to obtain a license to work a 
 distillery and to sell the liquor manufactured to licensed vendors at 
 prices mutually agreed upon between them from time to time and not 
 fixed by Government. The existence of sufficient competition between 
 distillers being essential to the success of this scheme, it was experi- 
 mentally tried at first in a limited number of localities, and being found 
 to answer was extended to all the districts brought under the excise 
 system with the exception of a few special tracts where, owing to the 
 absence of railway communications or other causes, the privilege of 
 manufacture is still, for the present, granted as a monopoly. The 
 principal advantages of the '' free supply ^' system, as it is called, are 
 that it affords encouragement to distillers to lay out capital in the 
 adoption of the most recent improvements in the methods of manufac- 
 ture, without the fear, so long as they comply with excise regulations, 
 of having the right of distillation taken out of their hands after any 
 definite period, as would be the case when the privilege is granted as a 
 monopoly ; that by reducing the cost of liquor, it increases the margin 
 left for the Government taxation out of the price realizable from the 
 consumers, and that it enables licensed vendors to exercise some 
 choice as to the distillers from whom they can purchase their liquor, 
 and thus to adapt the liquor supplied by them to some extent to the 
 tastes of the consumers. The duty of maintaining preventive estab- 
 lishments has been undertaken by Government. The realizable 
 taxation varies, as already pointed out, in different parts of the country, 
 depending as it does on the habits of the people, the price which they 
 can pay and the facility with which illicit liquor can be made with 
 impunity ; and in order to obtain the highest duty that it is possible to 
 get in different localities, the taxation was divided into two portions ; 
 the first being the still-head duty payable when the liquor leaves the 
 distilleries and fixed at rates sufficiently low to enable the renters of 
 the vend farms to suppress the sale of illicit liquor where necessary, 
 and the second being the lump sums paid for the privilege of sale by 
 the vend-farmers and determined by public competition. By these 
 arrangements the total taxation leviable in different places is intended 
 to adapt itself to their varying circumstances by a natural process ; 
 and when, by the combined action of the preventive establishments 
 maintained by Government and of the renters working in their own 
 interest to displace illicit by licit consumption, unhampered by artificial
 
 olxvii 
 
 Area in 
 sq- miles. 
 
 Population. 
 
 Tracts under the 
 excise system 
 
 Tracts in which the 
 excise system has been 
 ordered to be intro- 
 duced from 1st April 
 next ... 
 
 Total ... 
 
 106,000 25,425,000 
 
 4,000 
 
 473,000 
 
 110,000 25,898,000 
 
 restrictions as regards maximum and minimum prices, illicit dealings 
 in liquor have been suppressed, it is expected that the way will be 
 clear for equalizing the still-head duty throughout the country and 
 levelling it up to the import rate ; in other words, increasing the 
 fixed and decreasing the variable portion of the total taxation. The 
 intention is eventually to dispense altogether with middlemen, with 
 monopoly privileges for the sale of liquor also and to make the taxation 
 consist of the still-head duty and shop rents. This plan has been 
 adopted in towns, but as it is not possible to abolish middlemen all at 
 once in rural tracts, the size of the vend farms has been gradually 
 reduced in view to middlemen being finally got rid of. 
 
 14. Since 1884 very considerable progress has been made in bring- 
 ing the improved excise system 
 into force throughout the Pre- 
 sidency ; it was of course intro- 
 duced at once into the districts 
 in which the '^guaranteed reve- 
 nue'^ system was in force ; it 
 was also extended to the Kurnool 
 district with the exception of the 
 Cumbum and Mdrkdpur taluks 
 
 in 1885 86 ; to the upland taluks 
 
 of the Kistna district in 1886 ; 
 to the five Municipal towns of the Malabar district in 1886-87 ; to the 
 inland taluks of the Vizagapatam district and into the Man galore taluk 
 of the South Canara district and into the taluks of Chirakal, Kottayam, 
 Calicut and Pdlghat of the Malabar district in 1888-89. It is under 
 contemplation to introduce it into Cumbum and Mdrkdpur taluks of 
 the Kurnool district and Gudivada, Yissanapet and Nuzvid taluks of 
 the Kistna district from next April. Within the next two or three 
 years it will probably be in force in all parts of the Presidency 
 excepting, of course, the Agency tracts. The diflficulty has hitherto 
 been to devise arrangements under which the excise system can be 
 worked in districts in which toddy spirit is consumed. In these districts 
 distillation is practised by almost every toddy-drawer and its suppres- 
 sion requires large preventive establishments. Toddy required for 
 distillation is, moreover, expensive to carry long distances and gets 
 spoilt if kept long. The plan introduced into the taluks of the Mala- 
 bar district at the suggestion of Mr. Galton may, however, be consi- 
 dered to have solved the problem. The plan is to establish distilleries 
 in central localities, where palm-trees are abundant, and to permit the 
 distiller to work subsidiary stills in the vicinity, from which weak 
 spirits could be passed by the distillery officer to the central distillery 
 for redistillation. Centralization of distillation of toddy spirit necessi- 
 tates the employment of strong preventive establishments and it is 
 found convenient to work it in connection with the tree-tax system (to 
 be noticed in connection with toddy arrangements) which likewise 
 requires strong establishments to work it. 
 
 15. The number of distilleries in the tracts under the excise system 
 is 20, of which 17 are worked under the " free supply " and 3 under 
 the " monopoly supply " system. In all these distilleries spirit is 
 manufactured by the method of continuous " close distillation." It 
 was at one time feared that Messrs. Parry and Company, who work a
 
 clxviii 
 
 large distillery at Nellikuppam in the South Arcot district in connec- 
 tion with their sugar factory there and manufacture spirit cheaply from 
 molasses, would be able under the '' free supply " system to establish 
 a practical monopoly and then enhance the price of liquor unduly and 
 thus diminish the margin left out of the retail price for the Government 
 duty. Experience has, however, since shown that there is'keen com- 
 petition among distillers for the custom of licensed vendors in " free 
 supply " areas and that the danger apprehended is not likely to arise. 
 
 16. There can be no doubt that since 1888-84 both the duty real- 
 ized and the price of liquor in excise districts have increased. The aver- 
 age duty for the districts in which the excise system was in force in 
 1883-84 was Rs. 3-2-6 per gallon of proof strength. In 1887-88 the 
 duty realized in the same districts was Ks. 4-8-3 per gallon, of which 
 Rs. 2-13-10 represented the duty levied at the still-head and Rs. 1-10-5 
 the incidence per gallon of the rents paid by vend farmers and shop- 
 keepers for the privilege of sale. The highest excise duty leviable 
 under law is Rs. 5 per proof gallon. For the current year the still- 
 head duty has been enhanced considerably in several districts and 
 therefoi'e a much larger portion of the taxation will be realized in the 
 shape of still-head duty than in 1887-88. 
 
 17. To determine the effect of the excise system on consumption 
 of liquor, the circumstances of the several districts must be separately 
 examined. The following are the facts connected with each district : — 
 
 Ganjam, exclusive of Agency tracts. — The consumption in 1875-76 
 was 38,849 proof gallons, in 1883-84 it had increased to 41,836 
 gallons. Since then it has been rapidly diminishing ; in 1886-87 it 
 was 24,579 gallons; 1887-88, 24,170 gallons; and in 1888-89, 24,044 
 gallons. The duty per proof gallon which was Rs. 1-15-0 had in- 
 creased to Rs. 3-11-9 in 1887-88 and to Rs. 3-6-4 in 1888-89. 
 
 Vizagapatam, exclusive of Agency tracts. — The consumption in the 
 coast taluks of the district was 16,905 gallons in 1875-76, 11,227 
 gallons in 1883-84, 26,479 gallons in 1886-87 and 29,133 gallons in 
 1887-88. The increase in these taluks in the later years is entirely 
 due to the stoppage of smuggling from the inland taluks where liquor 
 was sold cheaply by the contractors under the renting system. Under 
 the old law the transport of spirit in quantities not exceeding one 
 quart was permissible and considerable quantities were thus trans- 
 ported from the rented to the excise taluks with a view to evade 
 the higher duty leviable in the lattei\ The Abkdri Act of 1886 has 
 enabled Government to put a stop to this practice by prohibiting the 
 transport of liquor in however small quantities from the rented to 
 the excise tract. The excise system having been introduced into the 
 interior taluks also from 1888-89, the consumption for the whole 
 district has declined from 68,472 gallons in 1887-88 to 36,323 in 
 1888-89. The duty realized in 1887-88 and 1888-89 was Rs. 3-4-10 
 and Rs. 5-7-1, respectively, per proof gallon against Rs. 2-10-0 in 
 1875-76. 
 
 Goddvari. — No reliable statistics of consumption are available for 
 this district which has not yet been brought under the excise system. 
 In this as in other tracts in which the out-still system is retained the 
 consumption is very large, being 80 proof gallons per 1,000 of the
 
 clxix 
 
 population, a rate nearly double of that in excise tracts. There is 
 nothing to show that consumption has increased since 1875-76. When 
 the arrangements for concentrating distillation of toddy spirit are 
 introduced in this district, there will be an enormous decrease in 
 consumption. Mr. Bliss has been directed to visit the Northern 
 districts and submit proposals for placing the Abkdri administration 
 there on an improved footing, which, it is hoped, will be done at an 
 early date. 
 
 Kistna. — The excise system was introduced into the upland taluks 
 of this district only in 1886-87 and reliable statistics of consumption 
 for previous years are not available. The consumption in 1887-88 
 was very high, 141 gallons per 1,000 of the population, but it must 
 have been much higher under the out-still system. A reduction in 
 the consumption should be brought about by a gradual enhancement 
 of the still-head duty in this district. Since 1888-89 the duty has 
 been raised from Rs. 1-1-2 to Rs. 1-14-0 per gallon London proof. As 
 the upland taluks of this district are surrounded by tracts in which the 
 renting system is still maintained, it is necessary, in order to prevent 
 smuggling, that the duty should not be fixed very high at the outset, 
 but when the coast taluks are also brought under the excise system, 
 as it is hoped that they will shortly be, the duty can be considerably 
 enhanced. 
 
 Nellore. — In 1875-76 the consumption was 27,403 proof gallons ; 
 it has been gradually increasing since 1883-84; in that year it was 
 38,859 gallons, in 1886-87, 39,813 gallons, and in 1887-88, 42,106 
 gallons. In 1888-89, however, it went down to 39,240 gallons. The 
 increase, as compared with the earlier years is due to the suppres- 
 sion of illicit distillation and smuggling, which is known to have been 
 
 prevalent chiefly in the zemindari 
 portions, and this is shown by the 
 fact that the consumption per head 
 of the population * in this district 
 is much lower than in the adjacent 
 districts. The duty, which was 
 Rs. 2-3-9 per proof gallon in 1875-76, amounted to Rs. 4-9-1 in 1887-88 
 and to Rs. 4-6-6 in 1888-89. 
 
 Ciiddapah. — The excise system was introduced into this district in 
 1878, The consumption under renting system in 1875-76 was reported 
 at 66,848 gallons. In 1878-79, the year after the famine during whicl^ 
 this district had suffered very severely and lost more then one-fifth 
 of its population, the consumption was 41,172 proof gallons. Since 
 then the consumption has been 50,205 gallons in 1883-84, 43,614 in 
 1886-87, 46,703 in 1887-88 and 47,541 in 1888-89. The duty has 
 risen from Rs. 3-1-2 per gallon in 1878-79 to Rs. 5-1-2 in 1887-88 and 
 Rs. 4-14-9 in 1888-89. 
 
 Bellary Cantonment. — In 1875-76, the consumption was 33,460 
 gallons. In 1883-84 it had increased to 46,164 gallons ; in 1886-87 it 
 fell to 37,531 gallons ; it rose in 1887-88 to 42,685 owing to favorable 
 season and fell again to 38,487 gallons in 1888-89. The duty per 
 gallon has risen from Rs. 3-13-6 in 1875-76 to Rs. 5-8-11 in 1887-88 
 
 
 Gallon per head 
 
 
 of the population, 
 
 * North Arcot . . 
 
 •50 
 
 Cuddapah 
 
 •42 
 
 Kurnool 
 
 •58 
 
 Nellore 
 
 •32
 
 olxx 
 
 and Rs. 5-0-1 in 1888-89, The consumption in this town fluctuates 
 with the strength of the garrison. 
 
 Bellary district, exclusive of the Cantonment, and Anantapur dis- 
 trict. — The excise system was introduced into these districts in 1878-79. 
 If the consumption reported under the renting system in 1875-76 can 
 be relied on, it must have been very high — 119,375 proof gallons. In 
 1883-84, or 5 years after the famine in which these districts severely 
 suffered, the consumption was 53^615 gallons ; in 1886-87, 48,637 
 gallons; in 1887-88, 63,179 gallons; and in 1888-89, 50,990 gallons. " 
 The duty realized in 1888-89 amounted to Rs. 4-11-8 per gallon in 
 the Bellary district including the cantonment and to Rs. 4-4-5 in the 
 Anantapur district. 
 
 Kurnool District. — In the taluks west of Nallamalai hills the excise 
 system was introduced in 1885-86. The consumption has been as 
 follows :— 1885-86, 35,438 gallons; 1886-87, 41,282 gallons; 1887-88, 
 38,798 ; and 1888-89, 28,022. The high consumption in 1886-87 
 appears to have been due to the large numbers of laborers employed 
 on railway works which have since been completed. The duty realized 
 in 1888-89 was Rs. 4-14-9 per gallon. 
 
 Madras Town. — The consumption of Puttai and Colombo arrack 
 within the Municipal limits in 1875-76 was 114,402 gallons. In 
 1877-78, when the famine was at its height, the consumption rose to 
 127,101 gallons owing to the activity of the grain trade. In 1883-84 
 it was 126,628 gallons. In 1887-88 the consumption rose to 136,673 
 gallons owing to the strike among toddy-drawers during a portion of 
 the year and consequent increase in the sales of arrack. In 1888-89 
 consumption fell to 129,802 gallons. 
 
 Chingleput District. — The consumption in the Chingleput district 
 was in 1888-89, 57,483 against 57,795 gallons in 1875-76. 
 
 North Arcot. — The consumption in this district has been as 
 follows:— 90,765 gallons in 1875-76; 76,647 in 1883-84; 91,157 
 gallons in 1887-88 ; and 91,323 gallons in 1 888-89. The duty realized 
 has risen from Rs. 3-3-3 per gallon, London proof, in 1875-76, to 
 Rs. 5 per gallon in 1888-89. 
 
 South Arcot. — The consumption in this district has been 50,437 
 gallons in 1875-76; 55,514 gallons in 1883-84; 74,981 gallons in 
 1886-87; 80,670 gallons in 1887-88; and 95,740 gallons in 1888-89. 
 The rapid increase in the later years is entirely due to the employment 
 of preventive establishments and other arrangements made with a view 
 fo put a stop to the smuggling of liquor which for several years past 
 was going on from the French territory of Pondicherry into the 
 adjoining taluks of the South Arcot district. In fact the French 
 Government was deriving a large revenue from consumption of liquor 
 in British territory. The French and British villages are so interlaced 
 with one another that a large population in the British taluks were 
 drinking French liquor which was sold at much lower prices than the 
 British liquor. Pai'tly owing to a rise in the price of French spirit 
 and partly owing to fall in the price of spirit sold in shops within 
 British territory, the latter spirit is now enabled to compete with the 
 former, and much of the revenue which the French Government was 
 illegitimately making from consumption in British territory now finds
 
 clixi 
 
 its way, as it ought to, iuto the British treasury. The price* of 
 
 r. . British liquor consumed is, how- 
 
 yaUon of 30" ever, higher than the French liquor 
 
 nuder-proof. consumed before, and there is no 
 
 Bs. A. p. reason to think that actual con- 
 
 • In French shops... . 2 6 T. sumption has reallv increased. The 
 
 In shops on the British << ,* • ■> n ji 
 
 side of the frontier .. 2 4 rate of consumption m the South 
 
 Arcot district (53 gallons per 1,000 
 of the population) is about the same as that in the adjoining district ef 
 North Arcot (50 gallons per 1,000 of the population), the conditions 
 of which are similar to those of the former. The French Government 
 are getting alarmed at the diminution of the revenue they have been 
 deriving for several years and are thinking of imposing a high duty 
 on country spirits as well as on imported brandies. If they do this, 
 they will be benefiting their revenue and placing a check on the 
 enormous consumption of liquors within their territory -^a consumption 
 which is little less than a scandal and has no parallel in any portion of 
 the British territory. Until they see the wisdom of this policy the 
 British frontier taluks must suffer as regards abkdri administration by 
 the proximity of the French territory. Negotiation with the French 
 Government for an assimilation of the systems of abkdri administration 
 in their territory with that in force in British territory was tried before 
 but it led to no result, as the French Government returned evasive 
 answers, being apparently loath to give up the revenue they were 
 deriving from British consumption. Now that it has been shown 
 to them that they can no longer rely on this revenue, it is to be hoped 
 that they will see that, by working the abkdri administration on sound 
 principles, they can improve the revenue, and, at the same time, 
 promote the interests of sobriety and morality. 
 
 Tajijore. — The consumption in this district has been as follows : — 
 1875-76, 36,564 gallons; 1883-8-i, 33,875 gallons; 1S87-88, 37,0-l-5 
 gallons : and 1888-89, 39,100 gallons. Much arrack is not drunk iu 
 this district, the favorite drink of the lower classes being toddy. Thn 
 rate of consumption of arrack per head of the population is about 
 one-third of that of the adjoining district of South Arcot. The duty 
 realized in 1888-89 was Rs. 3-1 1-0 per gallon against Rs. 2-13-9 in 
 1875-76. 
 
 Trichinopohf. — The consumption has been — 1875-76, 39,092 gal- 
 lons ; 1883-84,' 36,314 gallons; 1887-88, 32,157 gallons; 1888-89, 
 35,282 gallons. The duty realized has risen from Rs. 2-12-11 in 
 1875-76 to Es. 4-3-8 in 1888-89. 
 
 Madura. — In 1875-76, when the abkari revenue of this district was 
 managed under the renting system, the consumption of arrack was 
 reported to have been 75,003 gallons. In 1883-84 the consumption 
 under the excise system was 46,742 gallons ; in 1887-88, 42,477 gal- 
 lons; and in 1888-89, 48,225 gallons. The t^te of consumption per 
 head of the population is less than that in the northern districts and 
 there is considerable smuggling and illicit distillation in the zemindari 
 portions. The increase in consumption in 1888-89 appears to be due 
 to large numbers of laborers employed on the works connected with 
 the Periydr project. The duty realized in 1888-89 was Rs. 4-5-1 per 
 gallon.
 
 
 Population 
 
 Population 
 
 
 in 1871. 
 
 in 1881. 
 
 * Ootacamund 
 
 ... 9,988 
 
 12,335 
 
 Coonoor 
 
 ... 2,498 
 
 4,778 
 
 oixxii 
 
 Tinnevelly. — In this district also, the arrack revenue was managed 
 under the renting system in 1875-76, when the consumption of arrack 
 was reported by the renters to have been 73,794 gallons. In 1883-84, 
 the consumption was 36,462 gallons; in 1887-88, 21,718 gallons; and 
 in 1888-89, 26,506 gallons. The rate of consumption o£ arrack in 
 this district is the lowest in the Presidency. The duty realized in 
 1888-89 was Es. 3-15-4 per gallon. 
 
 Coimhatore. — The consumption in this district has been as fol- 
 lows :— 1875-76, 59,944 gallons ; 1883-84, 47,594 gallons ; 1887-88, 
 38,183 gallons ; and 1888-89, 46,148 gallons. The duty realized has 
 risen from Rs. 2-9-10 per gallon in 1875-76 to Rs. 4-15-5 in 1888-89. 
 
 Nilgifis. — In this district the consumption of arrack has been as 
 follows :— 1875-76, 23,255 gallons ; 1883-84, 37,217 gallons; 1887-88, 
 36,212 gallons; 1888-89, 31,918 gallons. The consumption in 
 
 1883-84 was considerably in excess 
 of that in 1875-76, but the * princi- 
 pal towns in the district have been 
 growing of late years. It is also 
 understood that, as the cultivation 
 of poppy, which was carried on to some extent by the Badagas, was 
 suppressed when the Opium Act was introduced in 1880, they have 
 taken to drinking liquors. Since 1883-84, however, there has been 
 a decline in the consumption of country spirits. The duty reahzed has 
 risen from Rs. 3-6-11 per gallon in 1875-76 to Rs. 6-0-8 in 1888-89. 
 
 Salem. — The consumption in this district has been — 1875-76, 
 76,187 gallons; 1883-84, 53,000 gallons; 18.87-88, 54,171 gallons; 
 1888-89, 52,236 gallons. The duty has risen from Rs. 3-9-3 per 
 gallon in 1875-76 to Rs. 4-10-1 in 1888-89. 
 
 Malabar and South Ganara. — In Malabar, except in the Wynaad, 
 the excise system was only recently introduced into some of the taluks. 
 In South Canara the excise system has been introduced only into one 
 taluk. The introduction of Ihe excise system by raising the price of 
 liquor has undoubtedly tended to check consumption, but reliable 
 statistics are not available for previous years. 
 
 18. From the foregoing it will be seen (i) that the ^' excise^' 
 system has been introduced since 1875-76 into the greater portion of 
 the Presidency as rapidly as circumstances permitted ; (ii) that the 
 effect of the introduction has been to increase the taxation and with it 
 the price of country spirits and to diminish the consumption much 
 below what it was under the old renting system ; (iii) that in most of 
 the '^ excise '^ districts the consumption in 1888-89 was very much 
 less than in 1875-76 with the exception of South Arcot and the 
 Nilgiris ; (iv) that in South Arcot the increase is due to the measures 
 taken for enabling liquor in British shops to compete with and displace 
 the cheap liquor sold in French shops and which was chiefly consumed 
 in the taluks on the frontier of the Pondicherry territory, and that it 
 does not indicate any increase in drunkenness ; (v) that the increase 
 in the Nilgiri district is more than accounted for by the increase in 
 the population ; and (vi) that in the Madras town, where it might be 
 expected that consumption would have increased considerably owing 
 to increase of population and other causes, the consumption in 1888-89,
 
 olxxiii 
 
 as compared with that in 1875-76, shows only a slight increase. As 
 regards the increase in consumption in 1888-89 observable in a few 
 districts, as compared with that in 1883-84, it should be remembered 
 (i) that since then most portions of the Presidency have had a succes- 
 sion of very good seasons and the Presidency has rapidly recovered 
 from the effects of the famine of 1876-78 ; and (ii) that, since 1886, 
 the amendment of the Abkdri law giving power to prohibit transport 
 of liquor from Native States, &c,, even in quantities not exceeding a 
 quart and the preventive establishments employed by Government 
 have rendered it possible to displace illicit by licit consumption. 
 
 19. The above remarks refer to " country spirits," by which term 
 is to be understood spirits manufactured in this country and on which 
 the duty levied is below the rate prescribed by the customs tariff for 
 imported liquors and which under present law is Rs. 5 per gallon of 
 London proof strength and in proportion to strength for spirits of 
 other strengths. Spirit manufactured in this country and taxed at 
 the tariff rate is treated in all respects as imported spirit and permitted 
 to be sold in the same shops as the latter. The object is eventually 
 to assimilate the duty on the so-called " country spirit '' to that on 
 foreign spirits, that is to say, to abolish the distinction between 
 "country spirit^' and ''foreign spirit,'^ which is based simply on the 
 rate of duty levied and not on the methods of manufacture. The so- 
 called " country spirit " is in most distilleries manufactured by Euro- 
 pean process and is really rum and it is taxed at lower rates than the 
 tariff rate, because it is believed that, if the duty were levied at the 
 latter rate, considerable inducement would be offered to illicit distil- 
 lation and smuggling. In the case of the Madras town and the Nilgiri 
 district, it is possible now to raise the duty on country spirit to 
 the tariff rate and abolish the distinction between '' country " and 
 " foreign " liquors and this question is now under consideration. 
 
 20. Foreign liquors. — Liquors classed as " foreign " consist of (i) 
 imported spirits, wines and malt liquors ; (ii) spirit manufactured 
 within the Presidency and excised at the customs tariff rate of Rs. 5 
 per gallon of proof strength ; and (iii) beer brewed in the country 
 and excised at the tariff rate of one anna per gallon. Formerly 
 licenses for sale of " foreign liquors " used to be granted on payment 
 of fixed fees, but licenses for the sale of liquors, except in hotels and 
 refreshment vooms, are put up to auction and the liquors subjected to 
 a heavier duty than before. There are two breweries on the Nilgiris 
 and the consumption of the beer brewed is stated to be extending 
 among the lower classes of natives at Ootacamund and other places on 
 the hills, where toddy is not available and the price of country spirit 
 is high. 
 
 21. Toddy. — The regulation of the taxation of toddy (fermented 
 palm juice) presents great difficulties. The levy of an excise duty is 
 impossible and the only means available for regulating the tax on this 
 intoxicant with some reference to consumption is to impose a tax on 
 each palm tree tapped, the rate of tax being based on an estimate of 
 the average production of the several descriptions of toddy-producing 
 trees. The tree-tax to some extent performs the function of an 
 excise duty and enables Government to form some judgment as to 
 increase or decrease in consumption from the number of trees tapped
 
 oixxiv 
 
 and to enhance the tax wherever it is found that consumption is 
 increasing. The idea was borrowed from Bombay, but in working it 
 care has been taken here to avoid the mistake which was committed in 
 that Presidency of attempting to levy the duty not only on raw toddy 
 but also on toddy spirit by means of the tree-tax. This necessitated 
 the imposition of the tree-tax at rates so high (Rs. 18 annually per 
 cocoanut tree) that they, had the effect of suppressing the consumption 
 of raw toddy altogether and compelling classes of the population 
 accustomed to this beverage to drink spirit. The correct principle 
 for working the tree-tax was stated by Mr. Galton when Abkdri 
 Commissioner in the following terms : " The true principle appears 
 to be that the taxation in the form of a tree-tax should not exceed 
 what the people can afford to pay upon the beverage, and where, as in 
 some parts of Malabar, toddy constitutes an article of diet and is in 
 fact the ordinary morning meal of some of the laboring classes, tax- 
 ation must be moderate, or such classes would be deprived of their 
 food. Shop rents serve to enhance the tax on toddy used as an 
 intoxicant and when toddy is used for distillation taxation must be 
 supplemented by other means; if possible by a still-head duty.^' The 
 tree-tax in the portions of the Presidency in which it has been intro- 
 duced has been worked strictly on the lines above indicated. The tax 
 imposed, excepting in the town of Madras, amounts to Rs. 3 per 
 cocoanut tree. The tree-tax at this rate is hardly equivalent to a duty 
 of one anna per gallon of fermented toddy which contains sometimes 
 as much as 8 per cent, of alcohol. When palm juice is drawn in 
 vessels coated with lime, fermentation is prevented and the toddy 
 thus drawn is used either for food or for the manufacture of crude 
 sugar. This description of toddy is not taxed. In the Madras town 
 the tree-tax is at the rate of Rs. 6 per cocoanut tree. This rate is not 
 an unduly heavy one for the town of Madras, where considerable 
 quantities of toddy are drunk for purposes of intoxication, and it is 
 desirable to check consumption by raising the price of toddy. The 
 tax was- originally at the rate of Rs. 3 per tree and subsequently 
 enhanced to Rs. 4-8-0 ; this enhancement did not cause any rise in the 
 price of the beverage, but only reduced the profits of the toddy 
 drawers. It has, therefore, been still further enhanced to Rs. 6 per 
 annum during the current year in the town of Madras. It is believed 
 that the increase in the duty levied on country spirit and consequent 
 enhancement of its price have tended to increase the co'nsuraption of 
 toddy and that this tendency requires to be checked to some extent. 
 The tree-tax system, which is the only satisfactory system for taxing 
 toddy ou sound principles, is being gradually introduced. It has now 
 worked well in the portions of the Presidency in which it is in force 
 and its extension throughout the whole of the Presidency is only a 
 question of time. It requires considerable establishments for marking 
 the trees on which the tax is to be levied, and as the organization of 
 the establishments entails considerable labour on the Abkari depart- 
 ment the work has to be done gradually. In the tracts in which the 
 tree-tax system is in force the toddy-shops are sold by auction every 
 year, excepting in the Madras town and the Malabar district, where 
 fixed fees are levied. In South Canara a regular tree-tax system has 
 not been introduced, but the toddy-drawers are granted licenses to 
 tap any number of trees they like on payment of fixed fees ; the
 
 olxxv 
 
 22. In some of the towns, 
 
 licenses are not transferable and tapping under them of trees by per- 
 sons other than those whose names are specified in the license is not 
 perniifeted. This plan is obviously iiiferior to the tree-tax system, as 
 there is no limit to the number of trees tapped under each license 
 and no reliable estimate can be formed of the quantity of toddy drawn 
 or of the incidence of taxation. The only advantages of this system 
 are that it renders the employment of expensive establishments for 
 marking the trees tapped unnecessary and prepares the way for the 
 introduction of the tree-tax. The fees levied on each license have 
 gradually been enhanced, but they still fall far short of what would be 
 payable if the tree-tax, such as exists in Ma^labar, were introduced. 
 In other portions of the Presidency the old renting system as regards 
 toddy is still retained, but the size of the toddy farms in like manner 
 with arrack farms has been reduced everywhere in order to ensure the 
 renters effectually coping with illicit tapping and unlicensed sale of 
 toddy. Ill towns middlemen have been dispensed with and toddy 
 shops are sold by auction. 
 
 however, the consumption of spirit 
 appears to have increased con- 
 siderably since 1882-83. A great 
 part of the increase is no doubt 
 accounted for by the increase of 
 urban population in recent years, 
 but the price of liquor in some 
 towns during portions of the year 
 appears to have been lower than 
 in the rural tracts. In the town 
 of Vellore, for instance, prices of 
 spirit of 30° under proof appear 
 to have ranged from Rs. 2-8-0 
 to Rs. 6 during 1888-89. This 
 would appear to indicate that the 
 shopkeepers are endeavouring to 
 force sales during festivals, &c.^ 
 by lowering prices unduly. When the abkdri arrangements for the 
 next year come to be settled, it will be a question for consideration 
 whether the still-head duty on spirit issued for consumption in these 
 towns should not be considerably enhanced with a view to compel 
 the shop-keepers to sell their liquor during all portions of the year at 
 rates which are not unduly low. 
 
 23. The number of shops for the sale of liquors licensed in 1887-88 
 compares with the number in 1875-76 as follows: — Country spirits 
 22,549 against 20,062; toddy 20,140 against 19,671; foreign liquors 
 931 against 965, The number of licenses to sell arrack in the Mala- 
 bar district was 4,422 in 1887-88 against 1,119 in 1875-76, and 
 licenses to sell toddy were 4,152 against 1,262. If the figures for 
 Malabar are excluded, it will be seen that the number of arrack shops 
 in the remaining districts show a decrease of 425 and toddy shops 
 show a decrease of 2,812. The peculiar circumstances of Malabar 
 render the maintenance of a large number of shops necessary. The 
 people are not congregated in villages, but have their homesteads in 
 the midst of their farms and palm groves. Palm trees are most 
 abundant^ and the distillation of toddy spirit, which is both easy and 
 
 
 a 
 
 c 
 
 Sf-I - 
 
 
 
 
 O 13 
 
 
 '«" 
 
 •6' 
 
 e3 -^ 
 
 
 o 
 
 _o 
 
 © ^ 
 
 
 •^ . 
 
 '■^ 
 
 A-^ . 
 
 Towns. 
 
 
 2-9 
 
 S ooo 
 
 
 Ss<i 
 
 oc 
 
 P- Aab 
 
 • 
 
 m 00 
 
 S 00 
 
 03 ® 9S 
 
 
 fl 00 
 
 fl 00 
 
 -M^a 00 
 
 
 O 1-H 
 
 O "-1 
 
 CS -P i-H 
 
 
 O 
 
 O 
 
 « 
 
 
 <6ALS. 
 
 GALS. 
 
 ■ 1 
 
 Nellore... 
 
 9,044 
 
 12,174 
 
 •442 
 
 Ad6ni 
 
 3,659 
 
 7,236 
 
 •332 
 
 Conjeeveram ... 
 
 4,784 
 
 8,931 
 
 •239 
 
 Vellore 
 
 7,970 
 
 13,746 
 
 •367 
 
 Kumbakdnain... 
 
 4,195 
 
 7,770 
 
 •155 
 
 Madura 
 
 7,466 
 
 12,191 
 
 •165 t 
 
 Diudigu] 
 
 2,098 
 
 5,660 
 
 •399
 
 olxxvi 
 
 inexpensive, is universally practised. Illicit distillation carried on in a 
 country, where the houses are detached and situated each in its own 
 garden, removed from observation, must of course be difficult of 
 detection in the absence of very strong preventive establishments. 
 Prior to 1884-85 under the renting system unlicensed sales were very 
 common, the renters contenting themselves with levying a fee from 
 the vendors and leaving them to do what they liked. With a view to 
 suppress this illicit traffic it was necessary that places should be freely 
 licensed and steps taken to enforce the requirements of the law as 
 regards sales in licensed places only. This accounts for the large 
 increase in the number of shops in this district in recent years up to 
 1887-88. Of late, however, the tree-tax and excise systems have been 
 introduced into portions of the distinct and large preventive establish- 
 ments organized to detect and prevent illicit practices. This has 
 made it possible to reduce the number of shops very much, the reduc- 
 tion in 1888-89 amounting to no less than 2,000. The Collector 
 expects that there will be a further decrease of 1,000 shops during the 
 current year. The regulation of the number of shops has perhaps 
 been the most vulnerable part of the abkdri arrangements in this 
 Presidency. Under the renting system and also the guaranteed 
 excise system, which was one of big monopolies, it was necessary that 
 the contractors, who were charged with the duty of preventing illicit 
 distillation and smugglings should be allowed considerable discretion 
 as regards the number of shops to be maintained. During the last 
 few years the Government has, however, employed preventive estab- 
 lishments of its own, and the facts as regards illicit consumption in 
 the different parts are being pretty well ascertained, f It is therefore 
 now possible to regulate the number of shops with reference to the 
 requirements of different localities and the Commissioner of Salt and 
 Abkdri Revenue has been devoting considerable attention to the sub- 
 ject. He has recently directed that the number of shops, in towns 
 especially, where illicit practices are easy of detection, should be con- 
 siderably reduced. The Government has insisted on large reductions 
 in the number of shops in the rural tracts also, and before long the 
 number of shops will in all probability be reduced to one-half of what 
 it is now. As in this Presidency, however, toddy and arrack are sold 
 in different shops, the total number of shops maintained must be 
 larger than in provinces where the two kinds of liquor are allowed to 
 be sold in the same shop. 
 
 24. The net abkdri revenue of this Presidency since 1878-79 has 
 been as follows : — 
 
 Lakhs of rupees. 
 
 1878-79 ...' 56-72 
 
 1879-80 57-31 
 
 1880-81 54-49 
 
 •1881-82 58-29 
 
 1882-83 ,. 57-84 
 
 1883-84 57-82 
 
 1884-85 68-42 
 
 1885-86 77-21 
 
 1886-87 ... 81-79 
 
 1887-88 ... 88'19 
 
 1888-89 95-13
 
 olxxvii 
 
 Since 1883-84 it will be seen that the revenue has increased by 
 37*31 lakhs or 64 per cent. 
 
 25. The facts stated above will, I believe, place it beyond doubt 
 that the abkdri administration of this Presidency has for several years 
 past been conducted on sound principles. The revenue has doubtless 
 increased considerably, but it has been obtained by pushing up tax- 
 ation and reducing consumption and not by pushing up consumption. 
 The ascertainment of the limit, to which the taxation in the several 
 parts of the Presidency can be carried, is a tentative process and it 
 would be rash to assert that in no instance was a mistake committed. 
 On the whole, however, there is no reason to think that consumption 
 is now higher than it was 15 years ago, and there is distinct evidence 
 to show that in most parts of the Presidency it is very much less. 
 The assertion, which one sometimes hears to the contrary, is not the 
 result of a proper investigation of the conditions of the past or 
 study of comparative statistics, but of a newly awakened conscious- 
 ness to the evils of drinking in the abstract. It has been truly 
 remarked : " Those who have lately become conscious of certain facts 
 are apt to suppose that they have lately risen. After a changed 
 state of mind has made us observant of occurrences we were before 
 indifferent to, there often results the belief that such occurrences are 
 more common than they were." I believe that most of the difficulties 
 connected with abkdri administration have now been surmounted and 
 that very little remains to be done beyond persevering in the policy 
 hitherto pursued. The excise system and the tree-tax system must of 
 course be introduced into the remaining portions of the Presidency as 
 quickly as circumstances will permit, and when this has been done, 
 and the shops licensed have been reduced to the smallest number 
 possible, consistently with the requirements of the population to be 
 served, and the duty is enhanced from time to time in places where 
 the consumption shows a tendency to increase, the Government will 
 have done in the way of reducing consumption all that it is possible 
 for it to do. The consumption of liquor by the laboring classes 
 fluctuates with the state of the agricultural season from year to year 
 and in prosperous times shows a tendency to increase. This tendency 
 can be checked only by the diffusion of elementary education among 
 the lower classes. This being so, it is a question for consideration 
 whether a fixed percentage of the increase of revenue (nearly 38 lakhs 
 within the last 5 years) contributed chiefly by the working classes 
 should not be set apart for advancing elementary education. The 
 Government of India now take 75 per cent, of the revenue derived 
 from excise. 
 
 26. There are three classes of persons who condemn the abkari 
 arrangements in this Presidency. The first comprises philanthropists 
 who, being impressed with the evils which the spread of drunkenness 
 has wrought in England, feel anxious lest a similar state of things 
 should be brought about by Government arrangements in India, more 
 especially as religious prejudices among large classes of the popula- 
 tion, which formerly told in favour of sobriety, are gradually wearing 
 away. Their fears, so far as this Presidency is concerned, are not 
 well-founded, and if they knew the facts they would doubtless be 
 ready to admit that Government is working in the same direction aa
 
 olxxviii 
 
 themselves. The second class of persons are the distillers and big 
 monopolists who have had their enormous profits reduced by the new 
 arrangements. Their dislike to the new order of things is, of course, 
 very natural. The third class are the toddy-drawers and professional 
 distillers who find their hereditary occupation going out of their hands 
 and who have to seek new means of livelihood. They undoubtedly 
 suffer hardship, but it is temporary, and their interests are opposed to 
 those of the general public. 
 
 Postscript. 
 
 The above note was written in November 1889 or two years ago. 
 I will briefly state below what improvements have since been effected 
 in the abkdri administration : — 
 
 (1) Excluding the agency tracts, the " excise system '' {vide para. 
 14) is in force in about 110,000 square miles out of the 120,000 square 
 miles comprised within the Presidency. 
 
 (2) The tree-tax system {vide para. 21) has been further extended 
 and it is in force in 28,000 square miles of country. 
 
 (3) The average rate of duty per gallon of country spirits, proof 
 strength, which was Rs. 2-13-7 in 1875-76 was Rs. 3-15-9 in 1888-89, 
 Rs. 4-2-1 in 1889-90 and Rs. 4-6-1 in 1890-91. 
 
 (4) The consumption of country spirits has fallen considerably 
 during recent years and as compared with 1875-76 the consumption in 
 1890-91 was only 5 per cent, more notwithstanding an increase of 
 more than 10 per cent, in the population. 
 
 Millions of proof gallons. 
 
 1875-76 
 1888-89 
 1889-90 
 1890-91 
 
 1-27 
 1-38 
 1-43 
 1-33 
 
 (5) The number of shops both in the towns and in the rural tracts 
 has been enormously reduced. 
 
 
 
 1875-76. 
 
 1888-89. 
 
 1889-90. 
 
 1890-91. 
 
 
 Country spirit 
 shops. 
 
 i 
 Toddy shops 
 
 '49 towns 
 
 !. Rest of the Presideucy. 
 
 Total ... 
 Grand Total ... 
 
 20,062 
 
 
 899 
 14,026 
 
 524 
 12,230 
 
 17,532 
 
 14,925 
 
 12,754 
 
 19,761 
 
 26,180 
 
 21,684 
 
 19,415 
 
 39,823 1 
 
 43,712 
 
 36,609 
 
 32,169
 
 clxxix 
 
 (6) The taxation per head of the population of duty on country 
 Spirits and on toddy has increased as shown below : — 
 
 (7) The revenue derived from country spirits and toddy has 
 increased. 
 
 ! 
 1 
 
 In lakhs of rupees. 
 
 1 
 
 j Country 
 Country ,„ , , spirits and 
 spii-its. loaay. ^^^^^ 
 
 combined. 
 
 Total. 
 
 1888-89 
 
 1889-90 
 
 1890-91 
 
 46 40 
 54 44 
 57 51 
 
 8 
 5 
 
 1 
 
 94 
 103 
 109 
 
 (8) The consumption of imported liquors^ excluding liquors manu- 
 factured in the country on the European method, in 1890-91 compares 
 with that in 1875-76 as shown below : — 
 
 
 In thousands of gallons. 
 
 
 1875-76. 
 
 1890-91. 
 
 Imported spirits 
 
 208 
 
 203 
 
 Wines 
 
 102 
 
 61 
 
 Malt liquor 
 
 196 
 
 540 
 
 Country brewed beer 
 
 80 
 
 379 
 
 Total . . . 
 
 586 
 
 1,183 
 
 The above table shows that the consumption of spirits and wines 
 has decreased, while that of malt liquors has considerably increased. 
 Regarding the causes of the increase Mr. O^Conor in his trade review 
 for 1889-90, says : " Various causes in combination may be assigned
 
 clxxx 
 
 for this remarkable augmentation. The character of the beer has 
 changed and many are able to drink the lighter qualities now imported • 
 who were unable to drink the heavier beers of former years. There 
 has been a great increase in the classes of European population 
 accustomed to drink beer habitually, — artizans, workers in mills and 
 factories, men employed on railways and in land and coasting steamers 
 and so forth. There has also been created a taste for beer among 
 the Madras coolies who work for high wages in Burmah and return 
 annually to Madras with their earnings. The strength of the British 
 army has been largely augmented and the prices of beer have mate- 
 rially fallen. But it is hardly likely that these causes alone can have 
 brought about such a sudden development in consumption, and the 
 most effectual cause may perhaps be sought in competition. The 
 English brewers keenly felt the competition of the German and 
 Austrian brewers, and actively sought to retain a market which seemed 
 to be undermined from without by contiuental and from within by 
 Indian beer.^' The total population of the Presidency has increased 
 by 14 per cent, since 1871 and the European and Eurasian population 
 by 11*4 per cent. 
 
 (9) On the whole, there has been great decrease in consumption 
 by the introduction of the '' excise system,^' and the assertion that 
 drunkenness is spreading is entirely without foundation so far as this 
 Presidency is concerned. 
 
 (h) 1 — Statement showing the Number of Offences reported in 1850 and 
 1890 in the Madras Presidency. 
 
 1 
 
 1850. 
 
 1890. 
 
 1. Offences against person — 
 
 (a) Affecting life 
 
 (6) Hurt 
 
 (c) Rape 
 
 (d) Assault 
 
 (e) Other offences ... 
 
 Total ... 
 
 2. Offences against property — 
 
 {a) Robbery and dacoity .. 
 
 (b) Theft .' 
 
 (c) Other offences 
 
 Total ... 
 
 3. Other offences 
 
 4. Offences against special and local laws 
 
 Grand Total ... 
 
 352 
 
 487 
 
 75 
 
 167,063 
 
 799 
 
 14,079 
 
 82 
 
 32,725 
 
 2,629 
 
 167,927 
 
 50,314 
 
 1,314 
 
 14,715 
 
 6.541 
 
 899 
 19,424 
 23,948 
 
 44,271 
 
 22,570 
 
 7,263 
 
 19,447 
 121,181 
 
 197,760 
 
 235,213
 
 clxxxi 
 
 (h) 2 — StatemeJit showing the Number of Cases instituted before Crftninal 
 Courts in the Madras Presidency. 
 
 
 1850. 
 
 1890. 
 
 Number of cases filed before the Village Police 
 
 Number of cases filed before the District Police (answer- 
 ing to the present 2nd and 3rd Class Magistrates) 
 
 Number of cases filed before the Magistracy (the present 
 Ist-class Magistrates) ... ... ... 
 
 Number of cases committed to the Sessions Courts 
 
 Number of cases committed to the High Com-t ... 
 
 Total . . 
 
 12,678 
 
 171,584 
 
 10,154 
 914 
 115 
 
 11,529 
 
 169,490 
 
 41,730 
 
 1,040 
 
 51 
 
 195,445 
 
 223,840 
 
 Note. — Out of 41,730 cases filed before Ist-class Magistrates in 1890, 35,606 were 
 before the Presidency Magistrates. 
 
 (h) 3 — Statement showing the Number of Civil Suits instituted in the 
 Presidency of Madras in 1850 and 1889. 
 
 
 1 
 1850. 
 
 1889. 
 
 1. Village Punchayats 
 
 2. Village Muneiffs 
 
 3. District Punchayats ... 
 
 4. District Munsiffs .. .. 
 
 5. Revenue Courts ... 
 
 6. Cantonment Court of Small Causes 
 
 7. Agency Courts 
 
 8. Sudder Ameens 
 
 9. Subordinate Judges 
 
 10. District Judges 
 
 11. Presidency Court of Small Causes ... 
 
 12. High Court 
 
 Total ... 
 
 Number of suits for lands, houses and other fixed 
 
 property 
 Number of suits for arrears of rent or revenue ... 
 Number of suits for money, allowances and personalities. 
 
 Total . . . 
 
 Total value of suits, Rs. 
 
 Average value, Rs. 
 
 14 
 
 11,107 
 
 8 
 
 52,708 
 
 12,691 
 
 4,816 
 
 48 
 
 53,733 
 
 151,498 
 
 6,656 
 
 354 
 
 912 
 
 H017 
 641 
 
 26,824 
 371 
 
 * 81,392 
 
 255,006 
 
 6,347 
 
 1,239 
 
 70,841 
 
 44,242 
 
 6,656 
 
 204,108 
 
 " 78,427 
 
 54,82,053 
 
 70 
 
 255,006 
 
 3,74,59,396 
 
 146 
 
 * Includes suits " referred," for which particulars are not available.
 
 clxxxii 
 
 (i) — Statement showing the imidence of taxation in the Madras Presidency. 
 
 
 Gross revenue in lakhs 
 
 Incidence per head of the | 
 
 
 of rupees 
 
 , 
 
 
 
 population. 
 
 
 Heads of revenue. 
 
 
 
 
 
 
 
 1852-53. 
 
 1872-73. 
 
 1889-90. 
 
 1852-53. 
 
 1872-73. 
 
 1889-90. 
 
 
 ■ 
 
 
 
 RS. A. 
 
 P. 
 
 RS. A. P. 
 
 RS. A. P. 
 
 Land revenue, includ- 
 
 
 
 
 
 
 
 
 ing receipts from 
 
 
 
 
 
 
 
 
 Forests and Tobacco 
 
 
 
 
 
 
 
 
 monopoly ... 
 
 375-1 
 
 475-3 
 
 519 
 
 1 8 
 
 
 
 18 3 
 
 1 7 3 
 
 Provincial rates, in- 
 
 
 
 
 
 
 
 
 cluding Municipal 
 
 
 
 
 
 
 
 
 taxation 
 
 
 75-1 
 
 107-9 
 
 
 
 3 10 
 
 4 10 
 
 Salt 
 
 50-4 
 
 128-5 
 
 175-7 
 
 3 
 
 3 
 
 6 6 
 
 7 11 
 
 Excise (including Ab- 
 
 
 
 
 
 
 
 
 kiri and Onium) ... 
 
 21-2 
 
 61-7 
 
 114 
 
 1 
 
 6 
 
 3 4 
 
 5 4 
 
 Customs 
 
 121 
 
 39-4 
 
 18-1 
 
 
 
 9 
 
 2 1 
 
 9 
 
 Assessed taxes (Motur- 
 
 1 
 
 
 
 
 
 
 pha)... 
 
 11-8 
 
 7-3 
 
 18-3 
 
 
 
 9 
 
 4 
 
 9 
 
 Stamps 
 
 4-8 
 
 , 42-6 
 
 65 
 
 
 
 3 
 
 2 2 
 
 3 
 
 Registration ... 
 
 Total ... 
 
 
 3-3 
 
 10-3 
 
 
 
 2 
 
 5 
 
 478-4 
 
 833-2 
 
 1,028-3 
 
 1 14 
 
 6 
 
 2 10 8 
 
 2 14 3 
 
 Note (1).— The incidence for 1852-53 has been arrived at by assuming the then 
 population of the Presidency to have been 25,000.000. 
 
 (j) — Statement showing the Expenditure of ihe Madras Presidency in 
 1889-90 as compared with that in 1849-50. 000 omitted. 
 
 Items. 
 
 1849-50. 
 
 Items. 
 
 i 
 
 1889-90. 
 
 1 
 
 
 BS. 
 
 
 1 
 
 1 RS. 
 
 1. Land Kevenue, Saver, Abk4ri 
 
 
 1. Land Eevenue and Abkiri — 
 
 
 and Tobacco — 
 
 
 (a) Salaries and allowances 
 
 
 (a) Salaries and allow- 
 
 
 to the Members of the | | 
 
 ances to the Mem- 
 
 
 Board of Revenue and 
 
 1 1 
 
 bers of the Board of 
 
 
 Civil Officers of Ac- 
 
 I 
 
 Revenue, officers of 
 
 
 count and Audit 
 
 404 
 
 account, &c. 
 
 237 
 
 (6) Charges of collecting the 
 
 
 (b) Charges of collecting 
 
 
 revenue, &c 
 
 4,217 
 
 the revenues, &c. ... 
 
 4.110 
 
 (c) Revenue Survey and 
 
 
 {<•) Purchase and charges 
 
 
 Settlement 
 
 930 
 
 of tobacco ... 
 
 265 
 
 {(l) Land Records and Agri- 
 
 
 (ci) Tanjore sinking funds 
 
 
 culture 
 
 56 
 
 and interest on Tan- 
 
 
 (e) Inam Commission 
 
 14 
 
 jore bonds ... 
 
 493 
 
 (/) Allowances to District 
 
 
 (e) Allowances and assign- 
 
 
 and Village Officers ... 
 
 3,660 
 
 ments payable out 
 
 
 (fif) Assignments and com- 
 
 
 of the revenues in 
 
 
 pensations 
 
 1,240 
 
 accordance with 
 
 
 (h) Territorial and political 
 
 
 treaties or other 
 
 
 pensions 
 
 918 
 
 engagements 
 
 5,112 
 
 
 
 Total ... 
 
 10,217 
 
 Total ... 
 
 11,439 
 
 2. Customs 
 
 215 
 
 2. Customs 
 
 212 
 
 1 
 
 Note. — The figures for 1849-50 have been taken from Appendix 1 to the report 
 from the Select Committee on Indian territories in' 1852. The figures for 1889-90 are 
 taken from the Financial and Revenue Accounts forjthat year.
 
 olxxxiii 
 
 (j) — Statement showing the Expenditure of the Madras Presidency in 
 1889-90 as compared tcith that in 1849-50. 000 omitted — cont. 
 
 Items. 
 
 1849-50. 
 
 Items. 
 
 1889-90. 
 
 
 RS. 
 
 
 RS. 
 
 3. Salt— 
 
 
 3. Salt- 
 
 
 (a) Purchase of salt 
 
 234 
 
 (a) Salt purchase and 
 
 
 (6) Parchase of salt manu- 
 
 
 freight 
 
 168 
 
 facturer's share 
 
 333 
 
 (6) Purchase of salt manu- 
 
 
 (c) Establishment and con- 
 
 
 facturer's share 
 
 115 
 
 tingencies 
 
 233 
 
 (c) Establishment, contin- 
 
 
 (d) Compensation 
 
 13 
 
 gencies, &c. 
 
 1,324 
 
 Total ... 
 
 813 
 
 Total ... 
 
 1,607 
 
 4. Assessed taxes 
 
 
 4. Assessed taxes 
 
 31 
 
 5. Forest 
 
 
 5. Forest 
 
 1,162 
 
 6. Stamps .. 
 
 50 
 
 6. Stamps 
 
 248 
 
 7. Registration 
 
 
 7. Registration 
 
 661 
 
 8. Mints 
 
 ioo 
 
 8. Mints 
 
 
 9. Interest on loans and depo- 
 
 
 9. Interest 
 
 "so 
 
 sits including the Tanjore 
 
 
 10. Post Office 
 
 1,395 
 
 Redemption Fund 
 
 533 
 
 11. General administration, in- 
 
 
 10. Post Office 
 
 434 
 
 cluding charges on ac- 
 
 
 11. General administration 
 
 887 
 
 count of Local Funds and 
 
 
 12. Residents and Political- 
 
 
 Municipal establishments. 
 
 1,356 
 
 Agents 
 
 141 
 
 12. Political Agents 
 
 83 
 
 13. Ecclesiastical establish- 
 
 
 13- Ecclesiastical establish- 
 
 
 ments 
 
 292 
 
 ments 
 
 347 
 
 14. Education 
 
 113 
 
 14. Education, including Local 
 
 t 
 
 15. Courts of Law 
 
 2,361 
 
 Funds and Municipal 
 
 
 16. Police 
 
 977 
 
 espenditui'e 
 
 2,290 
 
 17. Jails 
 
 
 15. Courts of Law 
 
 4,128 
 
 18. Medical (hospitals, &c.) ... 
 
 124 
 
 16. Police (public safety) 
 
 3,987 
 
 19. Scientific and minor depart- 
 
 
 17. Jails .. 
 
 800 
 
 ments 
 
 30 
 
 18. Medical 
 
 3,337 
 
 20. Pensions, donations to chari- 
 
 
 19. Scientific and minor depart- 
 
 
 table institutions, &c. 
 
 1,175 
 
 ments 
 
 350 
 
 21. Marine charges 
 
 123 
 
 20. Pensions, donations to 
 
 
 22. Miscellaneous 
 
 220 
 
 charitable institutions, &c. 
 
 1,350 
 
 23. Military charges including 
 
 
 21. Marine charges 
 
 83 
 
 buildings ... 
 
 25,247 
 
 22. Miscellaneous 
 
 2,480 
 
 24. Public Works — 
 
 
 23. Military charges including 
 
 
 (a) Repairs to tanks, &c. 
 
 970 
 
 buildings ... 
 
 34,750 
 
 (b) Buildings, roads, &c. 
 
 719 
 
 24. Public Works— 
 
 (o) Railways, working 
 expenses and capi- 
 
 
 
 
 tal expenditure ... 
 
 5,021 
 
 
 
 (b) Buildings and roads . . . 
 
 5,813 
 
 
 
 (c) Irrigation including 
 
 
 
 
 capital outlay 
 
 4,574 
 
 
 
 (d) Establishments, &c. . . . 
 
 2,689 
 
 Total ... 
 
 1,689 
 
 Total . . . 
 
 18,097 
 
 Grand Total ... 
 
 45,741 
 
 Grand Total ... 
 
 90,273 
 
 Note. — The figures for 1849-50 have been taken from Appendix 1 to the report 
 from the Select Committee on Indian territories in 1852. The figures for 1889-90 are 
 taken fi'om the Finance and Revenue Accounts foi" that year.
 
 clxxxiv 
 
 (F.) — Statistics relating to the improvement or the reverse in the standard 
 of living of the different classes of the population, 
 
 (a) — Comparative table showing the number of persons (males') engaged in the 
 several occupations in 1871 awe^ 1881 in the Madras Presidency [extracted 
 from the Report on the Census 0/ 1881). 
 
 Male 
 
 population, 
 
 1871. 
 
 Male 
 population 
 exclusive of 
 Pudukota, 
 
 1881. 
 
 126,104 
 34,319 
 
 193,450 
 
 22,882 
 
 154,848 
 
 185,070 
 
 36,277 
 
 104,639 
 
 425,116 
 
 176,544 
 
 63,376 
 
 163,342 
 
 5,211,178 
 38,042 
 89,585 
 
 6,453,839 
 106,380 
 150,337 
 
 755,676 
 
 223,520 
 
 5,253 
 
 58,906 
 
 288,001 
 
 2,295,917 
 
 720,404 
 391,048 
 63,281 
 153,617 
 416,934 
 510,585 
 
 1. Persons engaged in the general and local government 
 
 of the country ... 
 
 2. Do. in defence of the country 
 
 3. Do. in learned professions, literature, art 
 
 and science, with their imme- 
 diate subordinates 
 
 4. Do. in entertaining or performing per- 
 sonal offices to man 
 
 5. Persons who buy, sell, keep or lend houses or goods 
 
 of various kinds including' bankers, money-lenders 
 and money changers 
 
 6. Persons engaged in the conveyance of men, animals, 
 
 goods and messages 
 
 7. Persons possessing or working the land or engaged in 
 
 producing grain, fruit, grasses, animals or other 
 products ... 
 
 8. Persons engaged about animals 
 
 9. Do. in art and mechanical productions. 
 
 10. Do. in working and dealing in the tex- 
 
 tile fabrics and dress ... 
 
 11. Do. in food and drinks 
 
 12. Do. in animal substances 
 
 13. Do. in vegetables ... 
 
 14. Do. in minerals 
 
 15. Laborers and others (branch of labor undefined) 
 
 Note. — The classification of occupations in the Census of 1881 was 
 different from that adopted in 1871. In framing the above table, 
 attempt has been made to re-classify the population of 1871 on the 
 principles adopted in 1881. The rusults cannot, however, be fully 
 relied on. 
 
 2. The very considerable increase in the number of persons engaged 
 in " Personal service," item 4, will be noted. In regard to this, the 
 Census report says : " Increased contact with western ways, the inci- 
 dents of railway travelling, competition in business, have all led to 
 the greater development of personal services as a group of industries. 
 The words ' hotel ' and ' club ' have grown into the native language 
 and the things they mean have come into existence within the last few 
 years. For the well-to-do traveller, the choultry of tradition has, with 
 its gratuitous shelter (and sometimes gratuitous entertainment), given 
 place in every town to the private hotel, where the traveller is enter- 
 tained for payment ; while the Brahmin traveller, who formerly crept 
 up the coast ten miles a day and cooked his rice at the chattram, now 
 readily embarks in a steamer and shares with his paid fellow-clerk {sic) 
 the services of a travelling cook of his own caste." The number of 
 persons engaged in " Personal service " is, however, still only 1 in 139
 
 clxxxv 
 
 in tbe Madras Presidency, -while it is 1 in 14 in England, and this to 
 some extent affords an indication of the number of wealthy persons 
 needing personal services in the two countries. 
 
 3. The great decrease observable in the mercantile men and general 
 dealers, item 5, is attributed to erroneous classification. The figures 
 for 1881 include — mercantile men 78,268, and other general dealers 
 107,902. The first head comprises 46,041 merchants, 21,544 money- 
 lenders and money-changers and 3,707 brokers. The number of mer- 
 chants is absurdly overstated, as there are only 16,000 merchants in 
 England, the most commercial country in the world. 
 
 4. The increase in the number of persons engaged in connection 
 with land, item 7, is merely nominal, as the figures of 1881 evidently 
 include agricultural laborers shown under the liead " Laborers and 
 others (branch of labor undefined)" in the Census of 1871. 
 
 5. The decrease in the number of "Persons working and daaling 
 in textile fabrics and dress," item 10, is the remit of the declining 
 cond.tion of the weaving industry owing to the competition of the 
 Manchester cotton goods and also, latterly, to some extent of the 
 machine-made goods from Bombay. The imports of cotton twist, 
 whicl amounted to 4 millions of pounds in 1855-56, increased to 13 
 millions in 1870-71 and they are now (1887-88) 21| millions. The 
 imports of piece-goods increased from 825,406 pieces and 311,815 
 yard:? in 1855-56 to 94,600,201 yards and 11,469* dozens in 1870-71 
 and to 139,360,368 yards and 1,150,450 pieces in 1887-88. While the 
 weaving trade is a poor industry, it affords employment to a large 
 number of persons, probably half a million males as the women and 
 children of weavers' families all work in the looms. That this is not a 
 profitable industry may be inferred from the fact that among the 
 weaving castes only 3 in every 1,000 of the males are returned as sub- 
 sisting by "property." In 1871, the Board of Eevenue instituted 
 inquiries into the state of the weaving industry in this Presidency and 
 the results are given in their Proceedings, dated 28th June 1871, 
 No. 2605. The conclusion then arrived at was that the weaving 
 industry was in a fairly healthy condition. The number of looms at 
 work (279,220) showed an increase of nearly 42 per cent, as compared 
 with the number of looms at work between 1856-57 and 1860-61 and 
 on which the moturpha tax was levied, but the returns for the earlier 
 period were imperfect and not to be relied on. The Board estimated 
 the real increase at between 20 and 25 per cent, and attributed this 
 result mainly to the abolition of the vexatious and inquisitorial 
 moturpha tax. The total quantity of twist worked up into cloth was 
 taken at 31| million pounds, of which 11| millions, or 36^ per cent., 
 was imported and the rest country-made. 
 
 Another inquiry was instituted in 1889 by the Board of Eevenue 
 on a reference from the Government of India calling for " fairly accu- 
 rate statistics of the area and probable outturn of cotton " in the 
 Madras Presidency, and the results are embodied in the Proceedings of 
 the Board of Eevenue, No. 39, dated 12th February 1890, Eevenue 
 Settlement, Land Eecords and Agriculture. The average area under 
 the cotton crop was ascertained to be If million acres, and the probable 
 annual outturn was fixed at 87f million pounds, or at 50 pounds of 
 
 A A
 
 clxxxvi 
 
 clean cotton per acre with reference to the quantity of cotton clothing 
 required per head of the population and having regard also to the 
 exports and imports of cotton and cotton cloth manufactured. The 
 quantity of cotton used locally was estimated at 28f million pounds, 
 13 1 millions being used by the spinning and weaving mills at work 
 in the Presidency and the remainder being used by the poorer classes 
 for spinning into the thread used for making coarser cloths used by 
 the rural population. The number of hand looms at work in the 
 Presidency was estimated at 300,000, and the quantity of twist worked 
 up into cloth at 34| milKoiis of pounds, of which 19 millions, or 55 
 per cent., were imported, 1 million mill-spun aud the remaining 14^ 
 millions hand spun in the country. 
 
 6. In the number of persons engaged in the other occupations 
 specified in the statement, it will be seen that there has been a very 
 large increase ; that in items 6, 12 and 14 may be particularly noticed. 
 The increased facilities of communication between different parts of 
 the country have led to a great increase in the number of carts and other 
 conveyances, and railways, here as elsewhere, have not in any way 
 reduced their number, but on the other hand have since increased it. 
 Under item 12, the fish-curing industry is gaining in importance since 
 1881 on account of new facilities granted for the use of duty-free salt 
 in fish-curing operations. The large increase in the imports of metals 
 (valued at 11 lakhs of rupees in 1855-56, 40 lakhs in 1870-71, and 54 
 lakhs in 1887-88) and the great reduction in the cost of the articles has 
 led to an extension of the demand for them and the prosperity of the 
 metal industry. Among the persons included under item 14, 76,469 
 were gold and silver smiths, or 1 male goldsmith for every 408 of the 
 total population, while in England there is only 1 goldsmith for every 
 1,200 inhabitants.
 
 clxxxvii 
 
 
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 cxc 
 
 (d) — Statement showing the classification of the incomes on which the 
 
 Classified items. 
 
 Incomes from Rs. 500 to Rs. 2,000 per annum. 
 
 Incomes of Rs. 
 
 Districts. 
 
 Presidency 
 Town. 
 
 Total. 
 
 District. 
 
 Number of 
 assessees. 
 
 Amount of 
 assessment. 
 
 CM 
 
 o so 
 
 . <^ 
 
 S-i m 
 (» m 
 
 Si 03 
 
 <4-i -i-i 
 
 o a 
 
 g s 
 
 a § 
 
 Number of 
 assessees. 
 
 o a 
 
 -^ 2 
 
 P 00 
 O 03 
 
 as 
 
 O tc 
 
 Si w 
 
 9 =0 
 
 3 03 
 
 O ™ 
 
 Part I. 
 
 
 RS. 
 
 
 RS. 
 
 
 RS. 
 
 
 RS. 
 
 (a) Salaries, &c., paid by 
 
 3,971 
 
 57,645 
 
 1,208 
 
 15,665 
 
 5,179 
 
 73,310 
 
 1,295 
 
 1,31,778 
 
 Government. 
 
 
 
 
 
 
 
 
 
 (6) Do. by local 
 
 1,141 
 
 10,655 
 
 177 
 
 2,996 
 
 1,318 
 
 13,651 
 
 61 
 
 4,315 
 
 authorities. 
 
 
 
 
 
 
 
 
 
 (c) Do. by Com- 
 
 2,645 
 
 33,793 
 
 1,010 
 
 16,393 
 
 3,655 
 
 50,186 
 
 533 
 
 39,573 
 
 panies, &c. 
 Total, Part I ... 
 Part II. 
 
 
 
 
 
 
 
 
 
 7,757 
 
 1,02,093 
 
 2,395 
 
 35,054 
 
 10,152 
 
 1,37,147 
 
 1,889 
 
 1,75,666 
 
 
 
 
 
 
 
 
 
 (a) Banking Companies 
 
 41 
 
 781 
 
 41 
 
 1,104 
 
 82 
 
 1,885 
 
 21 
 
 2,609 
 
 (6) All other Companies 
 
 Total, Part II . . . 
 Part III. 
 
 4 
 
 102 
 
 6 
 
 181 
 
 10 
 
 283 
 
 18 
 
 14,259 
 
 45 
 
 883 
 
 47 
 
 1,285 
 
 92 
 
 2,168 
 
 39 
 
 16,868 
 
 
 
 
 
 
 
 
 
 (o) Interest on securities of 
 
 
 99 
 
 
 861 
 
 • •. 
 
 960 
 
 
 11,962 
 
 the Government of India. 
 
 
 
 
 
 
 
 
 
 (6) Do. on all other secu- 
 
 
 
 
 
 
 
 
 265 
 
 
 
 
 
 
 
 
 
 
 Total, Part III ... 
 Part IV. 
 
 
 99 
 
 
 861 
 
 ... 
 
 960 
 
 
 12,227 
 
 
 
 
 
 
 
 
 
 (a) Professions — 
 
 
 
 
 
 
 
 
 
 (1) Pine Arts 
 
 33 
 
 591 
 
 3 
 
 50 
 
 36 
 
 641 
 
 
 ... 
 
 (2) Barristers, pleaders, and 
 
 1,020 
 
 18,686 
 
 14 
 
 401 
 
 1,034 
 
 19,087 
 
 220 
 
 24,607 
 
 other legal practitioners. 
 
 
 
 
 
 
 
 
 
 (3) Medicine 
 
 18 
 
 307 
 
 7 
 
 179 
 
 25 
 
 486 
 
 1 
 
 191 
 
 (4) Other professions 
 
 Total (a) ... 
 (b) Commerce — 
 
 (1) Agents, brokers, ban- 
 
 237 
 
 3,537 
 
 23 
 
 544 
 
 260 
 
 4,081 
 
 27 
 
 4,188 
 
 1,308 
 
 23,121 
 
 47 
 
 1,174 
 
 1,355 
 
 24,295 
 
 248 
 
 28,986 
 
 974 
 
 18,172 
 
 58 
 
 1,939 
 
 1,032 
 
 20,111 
 
 229 
 
 30,765 
 
 kers, and contractors. 
 
 
 
 
 
 
 
 
 
 (2) General merchants 
 
 3,152 
 
 46,213 
 
 
 62 
 
 3,152 
 
 46,275 
 
 235 
 
 35,819 
 
 (.3) Piece-goods merchants. 
 
 1,659 
 
 26,076 
 
 68 
 
 1,320 
 
 1,727 
 
 27,396 
 
 91 
 
 8,250 
 
 (4) Grain merchants 
 
 3,280 
 
 48,623 
 
 7 
 
 132 
 
 3,287 
 
 48,755 
 
 137 
 
 14,263 
 
 (5) Indigo merchants 
 
 439 
 
 6,096 
 
 3 
 
 90 
 
 442 
 
 6,186 
 
 15 
 
 1,147 
 
 (6) Salt merchants 
 
 125 
 
 1,909 
 
 
 
 125 
 
 1,909 
 
 19 
 
 4,753 
 
 (7) Money lending and 
 
 13,329 
 
 2,01,487 
 
 56 
 
 1,555 
 
 13,385 
 
 2,03,042 
 
 1,210 
 
 1,46,761 
 
 changing. 
 
 
 
 
 
 
 
 
 
 (8) Other merchants 
 
 Total ((;) ... 
 (c) Transport, ^c. — 
 
 (1) Cart and carriage build- 
 
 719 
 
 10,081 
 
 
 225 
 
 719 
 
 10,306 
 
 65 
 
 9,451 
 
 23,677 
 
 3,58,657 
 
 192 
 
 5,323 
 
 23,869 
 
 3,63,980 
 
 2,001 
 
 2,51,209 
 
 107 
 
 1,374 
 
 23 
 
 520 
 
 130 
 
 1,894 
 
 4 
 
 950 
 
 ers and owners and 
 
 
 
 
 
 
 
 
 
 livery stable-keepers. 
 
 
 
 
 
 
 
 
 
 (2) Ship or boat owners . . . 
 
 139 
 
 2,046 
 
 6 
 
 192 
 
 145 
 
 2,238 
 
 42 
 
 6,290 
 
 (3) Hotel and inn-keepers 
 
 59 
 
 905 
 
 4 
 
 126 
 
 63 
 
 1,031 
 
 10 
 
 917 
 
 and others. 
 
 Total (c) ... 
 
 
 
 
 
 
 
 
 
 305 
 
 4,325 
 
 33 
 
 838 
 
 338 
 
 5,163 
 
 56 
 
 8,157
 
 0X01 
 
 Income-tax was collected in tlie Madras Presidency during the year 1890-91. 
 
 2 
 
 000 and upwards per annum. 
 
 Total. 
 
 
 
 Presidency 
 Town. 
 
 Total. 
 
 Districts. 
 
 Presidency 
 Town. 
 
 Total. 
 
 
 
 u S 
 
 « 0) 
 
 If ' 
 
 1 
 
 o fl 
 
 la 
 si 
 
 (D X 
 o 03 
 
 a s 
 
 55 =« 
 
 
 C«H 
 
 O a> 
 
 a s 
 
 o Id 
 
 P! CO 
 
 O <n 
 
 a s 
 
 O oo 
 
 .D O! 
 
 a SI 
 
 fl a 
 a "o 
 
 O DO 
 |» 
 
 pQ 00 
 
 a s 
 
 d CD 
 
 ^ C3 
 
 ■«1 c3 
 
 
 
 682 
 
 22 
 
 323 
 
 RS. 
 
 78,975 
 2,849 
 
 33,340 
 
 i 
 
 1,977 
 
 83 
 
 856 
 
 ES. 
 
 2,10,753 
 
 i 
 7,164 
 
 72,913 
 
 i 
 
 5,266 
 1,202 
 3,178 
 
 1 
 
 BS. 
 
 1,89,423 
 14,970 
 73,366 
 
 1,890 
 
 199 
 
 1,333 
 
 BS. 
 
 94,640 
 
 5,867 
 
 49,733 
 
 7,156 
 1,401 
 4,511 
 
 ES. 
 
 2,84,063 
 
 20,837 
 
 1,23,099 
 
 
 
 1,027 1,15,164 
 
 2,916 
 
 2,90,830 9,646 
 
 2,77,759 
 
 3,422 
 
 1,50,240 
 
 13,068 
 
 4,27,999 
 
 
 
 21 
 9 
 
 24,643 
 6,933 
 
 42 
 27 
 
 27,252 i 
 21,192 
 
 62 
 22 
 
 3,390 62 
 14,361 15 
 
 i 
 
 25,747 
 7,114 
 
 124 
 37 
 
 29,137 
 21,475 
 
 
 
 30 
 
 31,576 
 
 69 
 
 48,444 
 
 84 
 
 17,751 
 
 12,061 
 265 
 
 77 
 
 32,861 
 
 161 
 
 50,612 
 
 
 
 54,134 
 3,116 
 
 
 66,096 
 3,381 
 
 
 
 54,995 
 3,116 
 
 
 67,056 
 3,381 
 
 
 
 ... 
 
 57,250 
 
 
 69,477 
 
 
 12,326 
 
 
 58,111 
 
 
 70,437 
 
 
 
 47 
 
 7 
 5 
 
 65 
 15,435 
 
 1,488 
 1,410 
 
 267 
 
 8 
 32 
 
 65 
 
 40,042 
 
 1,679 
 5,598 
 
 33 
 
 1,240 
 
 19 
 264 
 
 591 
 43,293 
 
 498 
 7,725 
 
 3 
 61 
 
 14 
 
 28 
 
 115 
 15,836 
 
 1,667 
 1,954 
 
 36 
 1,301 
 
 33 
 
 292 
 
 706 
 59,129 
 
 2,165 
 9,679 
 
 
 
 59 
 
 18,398 
 
 307 
 
 47,384 
 
 1,556 
 
 52,107 
 
 106 
 
 19,572 
 
 1,662 
 
 71,679 
 
 
 
 51 
 
 14 
 29 
 
 4 
 
 2 
 
 26 
 
 24,647 
 
 22,762 
 
 11,950 
 
 197 
 
 866 
 
 251 
 
 8,893 
 
 57 
 
 280 
 
 249 
 
 120 
 
 137 
 
 19 
 
 21 
 
 1,236 
 
 65 
 
 55,412 
 
 58,581 
 
 20,200 
 
 14,460 
 
 2,013 
 
 5,004 
 
 1,55,654 
 
 9,508 
 
 1,203 
 
 3,387 
 
 1,750 
 
 3,417 
 
 454 
 
 144 
 
 14,539 
 
 784 
 
 48,937 
 
 82,032 
 
 34,326 
 
 62,886 
 
 7,243 
 
 6,662 
 
 3,48,248 
 
 19,532 
 
 109 
 
 14 
 97 
 
 7 
 
 7 
 
 2 
 
 82 
 
 26,586 
 
 22,824 
 
 13,270 
 
 329 
 
 956 
 
 251 
 
 10,448 
 
 282 
 
 1,312 
 
 3,401 
 
 1,847 
 
 3,424 
 
 461 
 
 146 
 
 14,621 
 
 784 
 
 75,523 
 
 1,04,856 
 
 47,596 
 
 63,215 
 
 8,199 
 
 6,913 
 
 3,58,696 
 
 19,814 
 
 
 
 126 
 
 69,623 
 
 2,127 
 
 3,20,832 
 
 25,678 
 
 6,09,866 
 
 318 
 
 74,946 
 
 25,996 
 
 6,&1,812 
 
 
 
 2 
 
 1 
 3 
 
 1,288 
 
 234 
 771 
 
 6 
 
 43 
 13 
 
 2,238 
 
 6,524 
 1,688 
 
 111 
 
 181 
 69 
 
 2,324 
 
 8,336 
 1,822 
 
 25 
 
 7 
 7 
 
 1,808 
 
 426 
 897 
 
 136 
 
 188 
 76 
 
 4,132 
 
 8,762 
 2,719 
 
 
 
 6 
 
 2,293 
 
 62 
 
 10,450 
 
 361 
 
 12,482 
 
 39 
 
 3,131 
 
 400 
 
 15,613 

 
 cxou 
 
 Statement showing the classification of the incomes on which the Income-tax 
 
 Classified items. 
 
 Incomes from lis. 500 to £s. 2,000 pe 
 
 r annum. 
 
 Incomes of Bs> 
 
 Districts. 
 
 Presidency 
 Town. 
 
 Total. 
 
 Districts. 
 
 
 ■ 
 
 
 
 
 
 
 
 
 ii 
 
 =H -fcJ 
 
 "*-i . 
 
 =4-( jj 
 
 «<H . 
 
 VH -« 
 
 '^ . 
 
 tH j^ 
 
 
 O m 
 
 o a 
 
 O ai 
 
 rt 
 
 CO 
 
 fl 
 
 CD 
 
 •§ 
 
 
 ^ s 
 
 ^ ® 
 
 ^ s 
 
 -U> ffl 
 
 t< S 
 
 -^ 2 
 
 ^H ® 
 
 4^3 Q 
 
 
 
 r! to 
 
 s s 
 
 ri, ^ 
 
 g i 
 
 
 □ 03 
 
 © 
 
 §J 
 
 
 1 " 
 
 O oo 
 
 a m 
 
 B 9. 
 
 (D 
 
 
 m 
 
 a s 
 1 s 
 
 DO 
 
 a s 
 
 
 ^ S3 
 
 <5i 
 
 <^ tS 
 
 '^ § 
 
 ►^ « 
 
 ^s 
 
 !2i CS 
 
 *^Si 
 
 {d) Trade— 
 
 
 RS. 
 
 
 RS. 
 
 RS 
 
 
 ES. 
 
 (1) Dealers in agricultural 
 
 1,816 
 
 24,943 
 
 78 
 
 1,710 j 1,894 
 
 26,653 
 
 41 
 
 10,605 
 
 produce. 
 
 
 
 
 1 
 
 
 
 
 (2) Dealers in animals, 
 
 1,328 
 
 18,010 
 
 34 
 
 1,061 i 1,362 
 
 19,071 
 
 32 
 
 3,323 
 
 animal ani vegetable 
 
 
 
 j ; 
 
 
 
 
 substances, not food, 
 
 
 
 1 i 
 
 
 
 
 food and silt. 
 
 
 
 
 
 
 
 (3) Dealers iu precious 
 
 273 
 
 4,101 
 
 7 287 
 
 280 
 
 4,388 
 
 11 
 
 1,108 
 
 stones, &c. 
 
 
 
 
 
 
 
 
 
 (4) Dealers in spirits and 
 
 314 
 
 4,780 
 
 7 
 
 2,421 
 
 321 
 
 7,201 
 
 19 
 
 1,693 
 
 opium. 
 
 
 
 
 
 
 
 
 
 (5) Dealers in dress, &c. ... 
 
 954 
 
 13,905 
 
 3 
 
 1,192 957 
 
 15,097 
 
 45 
 
 3,759 
 
 (6) Dealers in other articles. 
 Total {d) ... 
 (c) Manufacture — 
 
 3,931 
 
 54,765 
 
 232 
 
 6,479 
 
 4,163 
 
 61,244 
 
 133 
 
 15,128 
 
 8,616 
 
 1,20,504 
 
 361 
 
 13,150 
 
 8,977 
 
 1,33,654 
 
 281 
 
 35,616 
 
 
 
 
 
 
 
 
 (1) Manufacture of cotton. 
 
 1,199 
 
 15,986 
 
 
 
 1,199 
 
 15,986 
 
 38 
 
 4,039 
 
 silk and woollen goods. 
 
 
 
 
 
 
 
 
 
 (2) Builders and artizans ... 
 
 50 
 
 588 
 
 5 
 
 251 
 
 55 
 
 839 
 
 
 
 (3) Manufacture of salt ... 
 
 168 
 
 3,007 
 
 
 
 168 
 
 3,007 
 
 32 
 
 3,'351 
 
 (4) Manufacture of spirits, 
 
 &c. 
 
 (5) Manufacture of metals, 
 
 &c. 
 
 Total (e) ... 
 (/) Property — 
 
 1 
 
 15 
 
 
 1 
 
 15 
 
 1 
 
 417 
 
 328 
 
 4,716 
 
 9 
 
 193 
 
 337 
 
 4,909 
 
 29 
 
 3,304 
 
 1,746 
 
 24,312 
 
 14 
 
 444 
 
 1,760 
 
 24,756 
 
 100 
 
 11,111 
 
 
 
 
 1 
 
 
 
 
 (1) House proprietors 
 
 361 
 
 6,579 
 
 195 ! 4,854 1 556 
 
 
 63 
 
 7,150 
 
 (2) Newspaper proprietors. 
 
 3 
 
 75 
 
 ... 
 
 42 1 3 
 
 11,433 
 
 
 
 (3) Printing press proprie- 
 
 21 
 
 361 
 
 "9 
 
 177 30 
 
 117 
 
 ... 
 
 ... 
 
 tors. 
 
 
 
 
 
 538 
 
 17 
 
 3,396 
 
 (4) Taxable Estate holders. 
 
 Total (/) 
 
 Total, Part IV . . . 
 
 Grand Total, Parts I, II, III, ") 
 &IV. i 
 
 7 
 
 126 
 
 
 7 
 
 126 
 
 
 10,546 
 3,45,625 
 
 392 
 
 7,141 
 
 204 
 
 5,073 ; 596 
 
 12,214 
 
 80 
 2,766 
 
 36,044 
 
 5,38,060 
 
 851 
 
 26,002 36,895 
 
 5,64,062 
 
 43,846 
 
 6,41,135 
 
 3,293 
 
 63,202 47,139 
 
 7,04,337 
 
 i,694 
 
 5,50,386 
 
 * Inclusive of Es. 22 relating to the tax on salaries paid by local 
 
 Remarks.— 
 Number of persons assessed to income-tax in 1890-91 
 
 Total taxable income 
 
 Average income assessed per head 
 
 Averaee assessment per head 
 
 Number of ryots paying assessment of Rs. 250 and upwards 
 Total assessment 
 
 56,809 
 
 Rs. 6,51,21.760 
 
 Rs. 1,146 
 
 Rs. 28-10-6 
 
 8,869 
 
 Rs. 39,47,466
 
 oxom 
 
 was collected in the Madras Presidency during the year 1890-91— cont. 
 
 2,000 and upwards per annum. 
 
 Total. 
 
 Presidency 
 Town. 
 
 Total. 
 
 Districts. 
 
 Presidency 
 Town. 
 
 Total. 
 
 
 
 
 
 '-tM 
 
 «- jj 
 
 
 
 «H 
 
 CM 4^ 
 
 O m 
 
 o -g 
 
 O a, 
 
 o a 
 
 O OQ 
 
 ° fl 
 
 O ZD 
 
 O PI 
 
 O M 
 
 o rt 
 
 u ® 
 
 « a 
 
 
 a a 
 
 S g 
 
 g a 
 
 
 fl a 
 
 1^ 
 
 2 a 
 
 rO S 
 
 rQ m 
 
 S a, 
 
 rJ3 S 
 
 rO S 
 
 to 
 
 "S ? 
 
 5 S 
 
 as 
 
 CO 
 
 
 S <u 
 
 o S 
 
 ^ (U 
 
 9 OQ 
 
 a $ 
 3 s 
 
 o S 
 
 a ^ 
 
 
 3 s 
 
 '< § 
 
 3 g 
 
 11 
 
 
 a s 
 
 a s 
 
 03 
 
 
 
 KS. 
 
 
 RS. 
 
 
 RS. 
 
 
 RS. 
 
 
 RS. 
 
 2 
 
 208 
 
 43 
 
 10,813 
 
 1,857 
 
 35,548 
 
 80 
 
 1,918 
 
 1,937 
 
 37,466 
 
 16 
 
 4,121 
 
 48 
 
 7,444 
 
 1,360 
 
 21,333 
 
 50 
 
 5,182 
 
 1,410 
 
 26,515 
 
 2 
 
 4,659 
 
 13 
 
 5,767 
 
 284 
 
 5,209 
 
 9 
 
 4,946 
 
 293 
 
 10,155 
 
 3 
 
 4,628 
 
 22 
 
 6,321 
 
 333 
 
 6,473 
 
 10 
 
 7,049 
 
 343 
 
 13,522 
 
 1 
 
 890 
 
 46 
 
 4,649 
 
 999 
 
 17,664 
 
 4 
 
 2,082 
 
 1,003 
 
 19,746 
 
 35 
 
 6,194 
 
 168 
 
 21,822 
 
 4,064 
 
 69,893 
 
 267 
 
 12,673 
 
 4,331 
 
 82,566 
 
 59 
 
 20,700 
 
 340 
 
 56,316 
 
 8,897 
 
 1,56,120 
 
 420 
 
 33,850 
 
 9,317 
 
 1,89,970 
 
 
 
 38 
 
 4,039 
 
 1,237 
 
 20,025 
 
 
 
 1,237 
 
 20,025 
 
 1 
 
 117 
 
 1 
 
 117 
 
 50 
 
 
 6 
 
 368 
 
 56 
 
 956 
 
 
 
 32 
 
 3,351 
 
 200 
 
 588 
 
 
 
 200 
 
 6,358 
 
 1 
 
 1,792 
 
 2 
 
 2,209 
 
 2 
 
 6,358 
 432 
 
 1 
 
 1,792 
 
 3 
 
 2,224 
 
 
 130 
 
 29 
 
 3,434 
 
 357 
 
 8,020 
 
 9 
 
 323 
 
 366 
 
 8,343 
 
 2 
 
 2,039 
 
 102 
 
 13,150 
 
 1,846 
 
 35,423 
 
 16 
 
 2,483 
 
 1,862 
 
 37,906 
 
 54 
 
 8,729 
 
 117 
 
 15,879 
 
 424 
 
 13,729 
 
 249 
 
 13,583 
 
 673 
 
 27,312 
 
 4 
 
 1,468 
 
 4 
 
 1,468 
 
 3 
 
 75 
 
 4 
 
 1,510 
 
 7 
 
 1,585 
 
 2 
 
 221 
 
 2 
 
 221 
 
 21 
 
 361 
 
 11 
 
 398 
 
 32 
 
 759 
 
 
 
 17 
 
 3,396 
 
 24 
 
 3,522 
 
 
 ... 
 
 '24 
 
 3,522 
 
 60 
 
 10,418 
 
 140 
 
 20,964 
 
 472 
 
 17,687 
 
 264 
 
 15,491 
 
 736 
 
 33,178 
 
 312 
 
 1,23,471 
 
 3,078 
 
 4,69,096 
 
 38,810 
 
 8,83,685 
 
 1,163 
 
 1,49,473 
 
 39,973 
 
 10,33,158 
 
 1,369 
 
 3,27,461 
 
 6,063 
 
 8,77,847 
 
 48,540 
 
 11,91,521 
 
 4,662 
 
 *3,90,685 
 
 53,202 
 
 *15,82,206 
 
 authorities for which class war particulars are not available. 
 
 Average assessment per ryot 
 
 Number of ryots paying assessments of Rs. 500 and upwards 
 
 Total assessment 
 
 Averafije assessment per ryot 
 
 Number of income-tax payers per 100,000 of the population 
 Number of ryots paying Rs. 250 and upwards per 100,000 .. 
 Number of ryots paying 500 and upwards per 100,000 
 
 Rs. 445 
 
 2,157 
 
 Rs. 17,'73.414 
 
 Rs. 822 
 
 165 
 
 26 
 
 « 
 
 B S
 
 CXOIV 
 
 fQ\ Statement showing the amount of Government stock {public debt) held by 
 
 Europeans and Natives, respectively, ew 1834, 1850 a«^ 1888, throughout 
 India. 
 
 
 Europeans. 
 
 Natives. 
 
 Total. 
 
 1834 
 
 1850 
 
 1888 
 
 Rx. 
 
 20,439,870 
 21,981,447 
 70,895,590 
 
 Rx. 
 7,225,360 
 12,271,140 
 24,065,239 
 
 Rx. 
 27,665,230 
 34,252,587 
 94,960,829 
 
 1 
 
 Note. — (a) The amounts entered for 1888 do not include the special loans from the 
 Gwalior Durbar, &c. 
 
 (b) The amount of stock actually presented for payment of interest was Rx. 
 54,582,992, Rx. 36,657,560 by Europeans, and Rx. 17,925,432 by Natives. The amount 
 of enfaced notes held in London was Rx. 21,682,105. The balance of principal not 
 presented for interest, viz., Rx. 18,695,732, was ratably distributed among Europeans 
 and Natives in the proportion of the amounts presented by each for payment of interest. 
 
 (f) — Statement showing the transactions of the Presidency, District and Post 
 Office Savings Banks in India. 
 
 Years. 
 
 Number of Deposits. 
 
 Amount of Deposits including 
 interest in thousands of rupees. 
 
 Europeans. 
 
 Natives. Total. 
 
 Europeans. Natives. 
 
 Total. 
 
 1857-58 
 1862-63 
 1867-68 
 1872-73 
 
 1877-78 
 1882-83 
 1889-90 
 
 12,565 
 13,631 
 17,208 
 20,232 
 53,416 
 
 16,310 
 28,236 
 48,378 
 68,614 
 343,790 
 
 28,875 
 41,867 
 65,586 
 88,846 
 397,206 
 
 RS. 
 
 3,165 
 4,915 
 5,113 
 7,815 
 11,562 
 
 RS. 
 
 3,607 
 
 8,558 
 
 12,172 
 
 23,321 
 
 57,393 
 
 BS. 
 
 3,898 
 4,167 
 6,772 
 13,473 
 17,285 
 31,136 
 68,955 
 
 Note. — District Savings and Post Office Savings Banks were established in 1871-72 
 and 1886-87 respectively. 
 
 (g") — Statement showing the Number and Value of Money Orders issued. 
 
 Tear. 
 
 Number of Orders. 
 
 Value of Orders 
 in thousands of rupees. 
 
 India. 
 
 Madras. 
 
 India. 
 
 Madras. 
 
 1867-68 
 
 1872-73 
 
 1877-78 
 
 1882-83 
 
 1889-90 
 
 120,107 
 
 269,435 
 
 259,680 
 
 2,594,364 
 
 6,750,000 
 
 9,794 
 
 30,086 
 
 86,192 
 
 554,939 
 
 847,852 
 
 RS. 
 
 6,816 
 12,921 
 
 9,847 
 
 66,231 
 
 1,46,500 
 
 RS. 
 
 528 
 
 1,131 
 
 1,333 
 
 8,315 
 
 17,212
 
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 /j) statement showing the total acreage, classification of areas, irrigated 
 
 crops, current falloics, and the number of live-stock, carts, ploughs and 
 boats in the Madras Presidency during the year 1889-90. 
 
 (1) Total acreage. 
 
 Millions of 
 acres. 
 
 («) Area according to Survey Department ... 91-03 
 
 ( (1) Feudatory and Tributary States. 0*97 
 
 {b) Deduct, j (2) Area for which there are no 
 
 ( returns ... ... ... 30*29 
 
 (c) Net area by Survey Department 59-77 
 
 (2) Classification of net area. 
 
 {a) Forests 1M3 
 
 (6) Not available for cultivation 11-85 
 
 (c) Available for cultivation ... ... ... 8-02 
 
 {d) Current fallows 4-97 
 
 \e) Cropped during the year 23-80 
 
 ,., . . . f(l) Grovernment canals ... 2-70 
 
 if) Area im- g) Private channels 0-03 
 
 gated , ^3 rp^^g 2-31 
 
 durmg -^j^^ ^^ijg 1.17 
 
 ^^^ y^^^' U5) Other sources _048 
 
 Total area irrigated ... 6-39 
 
 f(l) Wheat 0-005 
 
 {g) Crops irri-j (2) Other cereals and pulses ... 5"61 
 
 gated. I (3) Miscellaneous food crops . . . 0-57 
 
 (t 1^(4) Non-food crops 0-21 
 
 (3) Acreage under crops. 
 
 (^) ^^l^l^ \ (2) Wheat 
 
 Eice 6-46 
 
 0-02 
 
 1 , v^y Other food grains including 
 pulses. (^ p^ig^g ^ 14.10 
 
 {!)) Oil-seeds 1-91 
 
 (c) Sugarcane ... 0-06 
 
 , ,, T^., (CI) Cotton mixed and unmixed. 1-64 
 
 {d) Fibres ... I 2^ other sorts 0-05 
 
 0-45 
 0-05 
 0-005 
 0-10 
 0-01 
 (Food 0*36 
 
 {e) Indigo 
 (/) Coffee 
 {g) Tea 
 {h) Tobacco 
 (e) Cinchona 
 
 ij) Miscellaneous crops. | ^on-food ! ! '. \'.\ 0-905 
 
 (A-) Total area of crops cultivated 26*12 
 
 (/) Area cropped more than once ... ... 2-32 
 
 {»^) Actual area cropped (k-1) 23*80
 
 OCUl 
 
 (4) Number of livestock, 8fc. 
 
 Number in 
 millions. 
 
 (a) Cows and bullocka ... ... ... 11*02 
 
 (b) Buffaloes 3-46 
 
 (c) Horses and ponies 0'05 
 
 ((/) Mules and donkeys 0*1 2 
 
 (e) Sheep and goats 12*06 
 
 (f) Carts 0-44 
 
 (g) Ploughs 2-50 
 
 (k) Boats 0-02 
 
 (k) — Extracts from Dr. Macleane's Manual of Administration on the 
 economic condition of the labouring classes. 
 
 Arcot, North. — The population is mainly rural. The ordinary agri- 
 culturist is strongly attached to his native village and rarely leaves it 
 except to attend some religious festival. The railway has worked 
 very considerable changes, and by raising the value of agricultural 
 produce has materially improved the condition of the cultivating 
 classes along the line. In the towns stone houses are not uncommon, 
 but all the villagers and the vast majority of the urban population live 
 in mud buildings. The household furniture of the ordinary cultivator, 
 herdsman and small trader consists merely of a bed of wooden planks 
 (visoopalagay), a bench and one or two boxes. The land under culti- 
 vation is reported at 578,731 acres (dry 377,715 and wet 201,016) or 
 only 13 per cent, of the district area. Most of the individual holdings 
 are very small, paying less than Rs. 25 per annum. A cultivator 
 paying more than that may be called a moderately large holder, while 
 those paying more than Rs. 100 per annum are few in number and 
 wealthy. The profits derivable from a holding of 5 acres average* 
 from Rs. 8 to Rs. 10 per mensem. From ragi the people make porridge 
 (sankaty) which constitutes the ordinary food of the masses. Rice, 
 though sometimes mixed as a luxury with the cheaper grains, is eaten 
 as a regular meal only by the wealthy. Male labourers earn from 
 Annas 2 to Annas 2-8 per diem and females about half as much. The 
 wages of a working goldsmith or blacksmith are 6 annas a day ; of 
 carpenter or bricklayer 6 annas to 8 annas. The rate of interest for 
 money lent on personal security varies from 12 to 36 per cent, per 
 annum. On the security of personal goods it averages 12 per cent, 
 and with a lien on crops 18 per cent. From 6 to 8 per cent, is 
 considered a fair return for money invested on land. 
 
 Arcot, South. — With a holding of 5 acres, the peasant is not so 
 well off as a retail shopkeeper, making a net income of Rs. 8 a month. 
 The mass of cultivators, however, hold less, and although the expenses 
 of an ordinary cultivator with a wife and 3 children may be calculated 
 at only Rs. 3-0-0 to Rs. 4-8-0 per mensem, they are as a rule in debt. 
 Twenty acres would be considered a large holding ; less than 2 acres 
 reduces the cultivator to a hand-to-mouth subsistence. Under the 
 regulations in force, cultivable waste is being annually taken up for 
 casuarina and cashewnut. Agricultural and day-labouring males earn 
 Annas 2-8 to Annas 3-4 per day and females about half as much. 
 (Smiths, bricklayers, carpenters obtain 6 annas a day on the average.
 
 ooiv 
 
 Since 1850 wages have risen 50 per cent., in some casjes 75 per cent. 
 A comparison of prices of food-grains in the years 1850-51, 1860-61 
 and 1870-71, all average years, shows a general rise in the second 
 decade with a fall in the third decade. The district contains a large 
 number of field labourers called padials of the Pariah caste, who 
 receive payments in kind and are, as a rule, farm hands engaged by 
 the season, but sometimes permanently attached to the estate. The 
 mass of cultivators are tenants with rights of occupancy terminable 
 at their own option. On private estates the cultivators, where not 
 padials, are tenants-at-will, paying rent to the intermediate landlord, 
 sometimes in cash but often in kind and liable to ejectment at the end 
 of the season. The rates of interest vary from 12 to 24 per cent, on 
 the security of personal goods ; from 6 to 9 per cent, on large trans- 
 actions and from 12 to 18 per cent, on personal security with a lien 
 on a crop. 5 to 6 per cent, would be considered fair return for money 
 invested on land. 
 
 Bellary and Anantapur. — Pricps have for many years been steadily 
 rising, and, where money payments obtain, agricultural labourers and 
 ordinary artisans now receive double and even treble the wages given 
 before 1850. The field labourers, however, are as a rule paid in kind 
 and the rise of prices has not affected them. In other cases the 
 cultivator class has benefited, the cotton-growers notably, many of 
 whom during the American war made considerable fortunes. Rice 
 during 1840-50 averaged 24 lb. for Annas 8, between 1850-60 rose 
 to 20 lb., and since 1860 has averaged 10 lb. for Annas 8; cholum 
 during the same period rose from 58 to 38 and 23 lb. for Annas 8 ; 
 and ragi from 62 to 46 and 25. 
 
 Canara, South. — The ruling retail prices of food-grains, &c., in 
 1883-84 per garce of 9,600 lb., were for best rice Rs. 400 ; paddy Rs. 
 148 ; gram Rs. 237. The wages of day labourers have increased 
 since 1850, an ordinary male labourer being now paid Annas 3 and 
 a female Annas 2 a day instead of Annas 2 and Annas 1|, respectively, 
 in 1850. Smiths and bricklayers who in that year obtained Annas 4 
 now get Annas 8 and carpenters now get Annas 8 who then got Annas 
 6. The Holeyas, answering to the Pariahs of Madras and the Ruhans 
 of Bombay, are a class who live by hire as unskilled labourers. They 
 are paid in paddy or rice, and their wages are subject to deductions 
 on account of debts contracted to meet the expenses of marriage. In 
 gathering the harvest and storing it up they are not paid so much per 
 day but receive -jy of the crop ; so also for preparing rice from paddy, 
 they receive 6 lb. of rice for preparing 84 lb. At the time of trans- 
 planting and reaping, females are largely employed and are generally 
 paid 4 lb. of rice per day. Before the British rule the Holeyas were 
 the slaves of the Wurgdars and even to this day they remain in a 
 state of modified serfdom ; but the coffee estates are drawing large 
 numbers from their original homes and labour market is being largely 
 ruled by the ordinary laws of supply and demand. 
 
 Goddvari. — In 30 years the population has doubled, and, thanks to 
 the splendid system of navigable irrigation works, the agriculture and 
 commerce of the district are in a most prosperous condition. Great 
 improvement has taken place of late years in the quality of the food- 
 grains raised in the district owing to the extension of irrigation by
 
 cov 
 
 canals. A farm, 100 acres in extent, would be considered a large 
 holding for an agriculturist, one of 30 acres a middlesized one, and 
 one of 5 acres a very small one. Government tenants have a permanent 
 right of occupancy so long as they pay the Government assessment. 
 In zeminda;-i estates, on the other hand, the cultivators are mostly 
 yearly tenants. A number of landless labourers are employed in culti- 
 vation, paid sometimes in money and sometimes at a fixed rate in grain, 
 but never by a regular share of the crop. Wages have more than 
 doubled since 1850. A carpenter, smith or bricklayer now earns 
 Annas 8-1 in towns and Annas 7-5 in villages and an agricultural 
 labourer 3 annas. Women employed in weeding and transplanting are 
 paid at from one-half to two-thirds of the rates for men, while the 
 children receive a lower rate. Paddy or unhusked rice, which in 1850 
 was returned at Rs. 24 per garce (9,860 lb.), is now (1884) worth 
 Rs. 68 per garce. 
 
 Kistna. — The people of the district are generally poor, but an 
 exception must be made in the case of the ryots of the delta, who are, 
 as a rule, very well off. Throughout the delta the houses are, as a 
 rule, built with brick-walls and tiled or terraced roofs ; in other parts 
 they are of mud walls with terraced roofs. Rice is the food of all 
 classes in the delta, but only the well-to-do people use it in other parts 
 of the district. The total monthly expenditure of a prosperous shop- 
 keeper's family, consisting of 5 persons, would be about Rs. 14 and 
 that of an ordinary peasant about Rs. 8. The district contains nume- 
 rous wells. The daily wages of coolies and agricultural labourers in 
 1850 were from Anna 1 to Annas 2 ; in 1876 from Annas 1-3 to Annas 
 4 and Annas 1-4 to Annas 3, respectively. Bricklayers and carpenters 
 from Annas 4 to Annas 6 and Annas 5 to Annas 8 a day, respectively, 
 while 16 years ago they earned Annas 2-6 to Annas 4 and Annas 2 to 
 Annas 4, respectively. In 1883-84 skilled labourers — average, Annas 
 7, others, Annas 4. 
 
 Malabar. — The peasantry of Malabar are no exception to the 
 general rule, dividing this class into those who borrow and into those 
 who lend. The borrowers among the actual cultivators are much more 
 numerous than the lenders, and borrowing, owing to certain characteris- 
 tics in the prevailing tenure, is rapidly on the increase. The wages of 
 artisans and labourers have been steadily increasing. Coolies, who in 
 1800 earned 1 anna and in 1850, 2 annas, earned in 1876-77, 5 annas 
 a day, and skilled workmen, whose wages in 1850 vaj'ied from 5 to 6 
 annas earned in 1876-77 from 8 to 10 annas. Agricultural labourers 
 are always paid in kind at the daily rate of 5 lb. of rice for a man and 
 4 lb. for a woman. 
 
 Tanjore- — Wages of agricultural labour are almost invariably paid 
 in grain. The ordinary rates are three-fourths of a merkal or 3 "87 lb. 
 of paddy (giving about 2| lb. of clean rice) per diem for a trained 
 labourer, male or female, and one-half merkal for inferior adult 
 labourers ; boys and girls receive half the rates. In towns, wages are 
 paid in money, the ordinary daily rate for an adult male being Annas 
 *Sic ^"*T^ ^° 1841-42 to Rs. 1-13-0* in 1876-77, for 
 
 children 1 anna each. Skilled labourers, such 
 as bricklayers, stone-masons, carpenters and smiths are paid according 
 to the nature of the work from 5 to 8 annas a day. The money
 
 CCVl 
 
 wages in all these cases are generally twice as high as it was twenty- 
 five years ago and in some cases the increase is still greater. Prices 
 of all articles of food have risen in about the same ratio. The village 
 sales of paddy, the staple produce of the district, on which the 
 original commutation rate for the assessment of irrigated land was 
 calculated, show that the average price of the Tanjore kalam equal to 
 12 merkals or 62 lb. has varied from Annas 7 in 1850-51 to Rs. 1-7-0 
 in 1875-76. Landless labourers constitute about one-half the adult 
 male population of the district and of these nearly two-thirds are 
 engaged in agriculture. They are chiefly Pullers and Pariahs who are 
 permanently attached to the farms. The remainder are low-caste 
 Sudras, who have immigrated from time to time from the Marava 
 country lying between the Cauvery delta and Cape Comorin. 
 
 Coimbatore. — Agricultural day-labourers or coolies earn 3 annas 
 per diem, women 2 annas and children 1 anna. Blacksmiths, brick- 
 layers, carpenters receive from Annas 6 to Annas 14 per diem. Since 
 1850 the rate of wages for skilled labour has risen from 25 to 80 per 
 cent, and prices of food have doubled. Rice which in 1850 was selling 
 at Rs. 1-8-0 per maund (80 lb.) now sells at Rs. 3 ; cholum formerly 
 Annas 10-8 per maund now costs Rs. 1-6-0 ; wheat once Rs. 1-8-0 
 per maund now sells at Rs. 3-4-0 ; salt has risen from Rs. 2-1-8 per 
 maund to Rs. 2-15-3; and country liquor (arrack) now sells from 
 Rs. 3-4-0 to Rs. 4-4-0 per gallon. 
 
 Kurnool. — The ryots, as a rule, cultivate their own lands. Owners 
 of very large holdings sublet some of their lands and employ labourers 
 on others. The wages of day labourers and artisans are usually paid 
 in kind. When paid in cash, coolies receive from Annas 2-6 to Annas 
 3 a day; blacksmiths, bricklayers, carpenters Annas 4 to Annas 12. 
 The average price of best rice in 1883-84 was Rs. 3-3-8 and of cholum 
 Rs. 1-4-1 per maund of 80 lb. 
 
 Nellore — The average prices of produce per maund (80 lb.) were 
 rice Rs. 3, inferior food-grains Re. 1, indigo Rs. 149, cotton Rs. 15. 
 The daily rates of wages are, skilled labour 12 annas at Ongole and 
 Kanigiri, 6 annas in most places, and 4 annas in some ; for unskilled, 
 Annas 6 at Atmakur, Annas 2-6 in most places and Annas 1-6 in 
 some. 
 
 Salem. — On a holding of 2 acres ^vet and 3 acres of dry land the 
 net profit would not probably exceed Rs. 60 per annum or Rs. 5 a 
 month. The mass of the peasantry are in debt. The habit of 
 indebtedness is so ingrained in their nature that if they all started 
 fair tomorrow, 50 per cent, would be in debt again in a year. One 
 man is held to be sufficient for the ordinary daily labour on a farm of 
 3 acres of wet or 6 acres of dry land, if assisted in the heavy work of 
 planting, weeding, reaping and threshing. His wages would be 480 
 measures of grain per annum = Rs. 12-8-0 plus an annual money 
 payment of Rs. 3, the wages in the northern being lower than in the 
 southern taluks. Twenty-seven measures of seed are required for an 
 acre of wet and 6 measures for an acre of dry land. The highest 
 Government wet rate in the district is Rs. 14 per acre and the lowest 
 is Rs. 11-9-0, exclusive of local cesses; the highest for dry lands 
 being Ks. 5 and the lowest Annas 4. The customary rates of wages 
 for unskilled labour are, for men Annas 2 ; for women Annas 1-6 ; for
 
 CCVll 
 
 children, male or female, Pies 10. The Wodder or Navvy caste get 
 twice as much, but they do generally task workj by which they gain 
 more than by daily wages. The wages of a working goldsmith vary 
 with the value of the materials, but may be taken on an average to 
 be Annas 8 per diem. A blacksmith gets Annas 8 ; a carpenter 
 from Annas 8 to Annas 10 ; bricklayers from Annas 6 to Annas 10. 
 During the 10 years ending 1874, the prices at Salem town per 
 garce or 9,360 lb. in February and March, when the ryots sell, aver- 
 aged Rs. 103 for rice and Rs. 115 for cholum or great millet. 
 
 Tinnevellij. — In 1883-84 the average rates of wages were for 
 unskilled labour in towns Annas 2-10 and in villages Annas 2-4 a day. 
 The price of rice in the same year was Rs. 3-12-11 per maund (80 lb.) 
 and of cumbu, the staple food of the district, Rs. 1-9-2. 
 
 Trichinopohj. — Agricultural labourers are generally paid in grain. 
 From 1881-82 to 1883-84 their money wages averaged Rs. 5-5-0 a 
 month. The wages of common masons, carpenters and smiths aver- 
 aged Rs. 15-2-1 a month. The average price of second-sort rice 
 during the 5 years ending 1883-84 was 15*23 imperial seers for 1 
 rupee; in 1879-80, 12-05; in 1880-81, 14-34; in 1881-82, 16-31 ; in 
 1882-83, 16-10; in 1883-84, 17-36 seers for 1 rupee. Similarly the 
 price of cumbu (the staple food) in the 5 years ending 1873 varied 
 from 15 to 43 ; in 1879 from 15 to 23 ; in 1880 from 23 to 30 ; in 1881 
 from 24 to 34 ; in 1882 from 28 to 39 ; in 1883 from 30 to 43 seers 
 for 1 rupee. An imperial seer equals 2-2046 lb. 
 
 Vizag aptam. — Prices of grain have risen very considerably during 
 the last few years. The rate of wages has also risen, but not in the 
 same proportion. 
 
 (1) — Opinions of certain genUemen un the present economic condition 
 of the people as compared with their past condition. 
 
 (1) Note by C. Nagqjee Row, Esq., B.A., Inspector of Schools, 
 Northern Circle. 
 
 People who talk of the poverty of India do so in a very vague way. 
 The country is poorer than it was 30 years ago ; it is poorer than 
 England, France or Grermany ; it is not so rich as it might be under 
 more favorable conditions — these are three distinct propositions having 
 no necessary connection with each other ; but newspaper writers and 
 others who write about the poverty of our country mean now one of 
 these things and now another, and do not, T fear, carefully distinguish 
 between the different propositions. 
 
 One may admit the two latter statements without admitting the 
 j&rst, but even with regard to the statement that India is poorer than 
 most European countries, I wish to state that drawing inferences as 
 regards the happiness of people from the production or value of produc- 
 tion per head of population alone is not quite safe. The necessities 
 of the people of different countries, the climatic conditions under which 
 they live, the sort of house accommodation, and the kind and quantity 
 of food, which they require for comfortable living, should also be taken 
 into account along with production in judging of the relative well- 
 being of different communities, and, if these things and the distribution
 
 OOVIU 
 
 of wealth among the various classes are considered, I doubt very much 
 whether the bulk of the Indian population is so very badly off when 
 compared with the bulk of the English people. Dr. Dhanakoti Raju, 
 who has just returned from Europe, is of opinion that the condition 
 of the lower classes in India is really much better than that of the 
 corresponding classes in England. 
 
 I readily admit the proJ)osition that India might be richer than it 
 is. If the cost of administration were less, home manufactures encour- 
 aged, our interests not sacrificed, as they sometimes are, to English 
 interests, and the people more energetic, more intelligent and more 
 enterprising, the country would no doubt be very much wealthier than 
 it is at present. 
 
 With reference to the opinion commonly expressed that this coun- 
 try has been growing poorer, I can only give my general impressions 
 and what appear to me to be reasonable deductions from well-known 
 facts. I shall at first refer to the condition of the land-owning classes. 
 It is admitted that Government had formerly the greatest difficulty 
 .in collecting revenue and in inducing people to keep lands under culti- 
 vation. The reason was that prices were so low that the ryots found 
 great difficulty in realizing, by the sale of the suiplus produce of their 
 lands, money sufficient to meet the Government or Zemindar's demand. 
 The land had consequently little or no value. Now, no such difficiilty 
 is experienced ; every inch of good land is under cultivation and the 
 price of produce and land, I am informed, has quadrupled during the 
 last 30 years. The opening out of the country by means of roads, 
 railways and canals and the establishment of steamer communication 
 have brought the markets of the world within the reach of the Indian 
 ryot, and he has no difficulty in disposing of the produce of the land 
 which remain over and above bis requirements. Assuming that the 
 ryots of the present day are not more extravagant than their fathers, 
 and admitting that every year they grow more than they require for 
 their consumption, it follows that they should be richer now than they 
 were 40 years ago. Security of property is one of the inducements to 
 lay by money. When an individual or a community gets richer, there 
 is generally perceptible a rise in the standard of living, and this is 
 noticeable everywhere among the agricultural classes, but notably so 
 in the Goddvari and Kistna districts, which are' exceptionally favored. 
 An intelligent friend, who remembers the state of things 40 years ago, 
 states that, while ryots then lived in poor mud huts, had nothing better 
 than earthen pots, no jewels and no furniture, they now live in tiled 
 houses, wear better and more clothing, have a number of silver and 
 gold ornaments, and even some furniture. This, he says, is a certain 
 proof of some wealth. The staple food of the people is now rice, 
 whereas it was formerly ragi or cholum. Another sign of prosperity 
 is that the better class of ryots, instead of selling produce immediately 
 after harvest to pay Government and other demands, generally store it 
 up, and sell it when prices go up. They have credit, too, now and 
 find no difficulty in raising loans when they wish to do so. With the 
 landowners agricultural laborers have prospered. They get plenty of 
 work in the cultivating season ; and in the dry weather, repairs to, 
 and clearance of, the numerous irrigation and navigation channels in 
 these districts give them occupation. The prosperity of the agricul- 
 tural community implies also the prosperity of the trading community.
 
 CCIX 
 
 Against the prosperity of the agricultural and trading classes, however, 
 is to be set the pressure which the landless and old manufacturing 
 classes are feeling. The condition of the weavers is everywhere lament- 
 able. Their occupatiom is gone ; and they have not had time enough 
 to reconcile themselves to their new lot and to adapt themselves to 
 changed circumstances. The extinction of native manufactures means, 
 I suppose, the loss of so much wealth to the community and suffering 
 to the manufacturing classes ; but the net result of British adminis- 
 tration up to now has been an increase, and not a decrease of national 
 wealth. This is the impression of most people whom I have consulted. 
 I have no figures at hand to establish this. 
 
 It is true the cost of administration has considerably increased of 
 late, the public debt has swelled, and the fall in the value of the rupee 
 is telling heavily on our finances.; making allowances for these and 
 the increase in taxation they imply, the country, owing to the secuiity 
 it enjoys and the facilities afforded for transport of produce and goods, 
 is very much better off now than it was in 1850. 
 
 The increase in thei area of land under tillage, the starting and 
 successful working of spinning and weaving mills, and the discovery 
 of coal in several parts of the country, are all factors in the question. 
 
 (2) Note by S. Seshaiyar, Esq., B.A., Professor^ Government College, 
 
 Kumbakonam. 
 
 I examined some bundles of old accounts in the possession of some 
 of the merchants of this town. The information to be gathered from 
 them is not as satisfactory as one could wish it were. Still there does 
 not appear to be any doubt about certain broad facts. 
 
 Is^. — Brass and copper vessels are much cheaper now than they 
 were between 30 and 40 years ago. The average price of brass 
 wrought into vessels, such as ^<ru^u[T&rLQ and sfSJsrrmLh, &c., was 8 
 annas a seer, or, in other words, 7 seers for a pagoda, whereas now it 
 is 11 or 12 seers, and, 4 years ago before the Paris Syndicate raised by 
 compact the price of copper, it sold at 14 seers the pagoda. Copper 
 was likewise dearer in the same ratio. Roughly it may be said that 
 the price of brass and copper vessels has cheapened by between 80 
 and 40 per cent. This is due, of course, to the enormous importation 
 of metallic sheets from Europe, Formerly they had to make brass 
 here. It is a mixture of copper and tin. And there is the notion that 
 brass pots and other vessels of those days were purer in quality and 
 more durable. Everywhere, even in villages, and among the lower 
 classes of the population, the journeymen laborers included^ brass 
 pots, plates and bronze cups have taken and are taking the place of 
 the earthen vessels. Even for cooking purposes they use the metallic 
 vessels. 
 
 2nd. — As regards clothing, there is no doubt that Manchester goods 
 are steadily driving out of the market the home- woven cloths, and this is 
 because of the great cheapness of the former. It is difficult to compare 
 the prices of these days with those that obtained thirty years ago. 
 Still, roughly, it may be estimated that cloths of nearly the same 
 quality are cheaper by 40 per cent. Then a ten, six, as it is called a 
 (£^ir(bv^^ and ^a/«sijsfi^irLi), of roiigli kind could not be had for less 
 than Rs. 1-12-0 ; 8 yards of jaconet will now do for it, and you can get 
 
 DO
 
 cox 
 
 it at annas 2 and pies 3 a yard, i.e., Rs. 1-2-0 the whole. Country-spun 
 cloths are dearer than Manchester manufactures or those of Bombay 
 mills ; but even for them the yarn is all English. In towns, at all 
 events, 80 per cent, of the male population buy Manchester cloths. 
 The higher classes of females in this part of the country wear country 
 manufactures of the silk and colored kind. Comparison of prices 
 here seems almost hopeless ; fashion has changed so enormously during 
 these 30 or 40 years. Looking into a large bundle of sales of cloths, 
 I find that female cloths, 99 per cent, of them, varied in price between 
 Rs. 3 and 7. These cloths have been substituted by others whose 
 average price may be put down at least at Rs. 10. These, of course, 
 are much prettier in appearance, and contain far more of silk. I am 
 not prepared to say that cloths of the same quality would be cheaper 
 now than in those days. What of .cheapness in the material used may 
 be made up by the increased rates of wages, but one thing is certain 
 that the better classes wear clothing now nearly three times as costly 
 as those worn by their grandmothers. This fact may in itself be worth 
 noting. The lower classes, including the working classes — by lotver I 
 don't mean lower by caste, but chiefly by wealth — are much more 
 decently clothed than they ever were. For Rs. 1-12-0 or Rs. 2 they 
 get a female cloth, of cotton entirely — the work of Bombay mills or 
 English ; they get' a cloth of the same pattern as the QstririsrrQ cloth. 
 Within my own knowledge in this town, i,e., during the last 20 years, 
 the dress of the lower classes has vastly improved ; and this improve- 
 ment is more than half of it due to cheapness of clothing. 
 
 And just a few words on the economic question you are busy with. 
 I have no idea of the results you have arrived at, or even of the exact 
 lines on which you have been working. Still I shall venture to say a 
 few words, although I know that the question has to be looked at from 
 various points of view. 
 
 I have a pretty vivid recollection of how things were in South 
 Arcot and in this district 35 years ago when a boy. I had oppor- 
 tunities of travelling through South Arcot and Tan j ore. I have 
 travelled, too, over the same parts of the country recently. In the 
 villages, substantial brick-built houses have now taken the place of 
 thatched houses of old ; brass and copper vessels, as also of bronze and 
 tin, are used where earthen and wooden vessels were used ; clothing is 
 decidedly better, far more elegant and costly ; and five times at least 
 more of gold and silver jewellery than in former days. I am not 
 prepared to say that everywhere in the country it is so. But it is so 
 in most places I have visited. Whether people are more M'ealthy or 
 not, there is far more display of wealth now than there was in days 
 when I was a boy of ten. And almost every intelligent elderly man 
 I have conversed with has told me the same as his observation. 
 Another significant fact is the rise in the price of land in this district as 
 elsewhere. Forty years ago a relation of mine who owned lands near 
 Karikal, sold 15 velies or 100 acres of land for Rs. 2,000, and the 
 same would sell now at Rs. 20,000, i.e., ten-fold. Confining ourselves 
 to the last 50 years only, I am not inclined to believe in the cry of 
 increasing poverty of the country. Beyond a shadow of doubt, people 
 are now better fed, better clothed and better housed. Whether the 
 country might not be far richer, were it not for this or that, is another
 
 CCXl 
 
 question which it is needless to enter into. But at the same time I 
 may mention there are certain vices -which are rapidly developing and 
 which need arresting — Ist, falsehood, 2nd drunkenness, 3rd, want of 
 thrift. These vices are not coufiued to towns, but are on the increase 
 in villages also. On the bearing of these on the future economy of the 
 country it is useless for me to dwell. 
 
 (3) Changes in Goddvari District since the construction of Anicut.-— 
 looted by S. Nathamunni Mudaliar, Esq., Pensioned Tahhildar^ 
 Goddvari District, 
 
 The construction of the anient across the Goddvari is a great boon 
 to this part of the country. This mighty work was commenced in 1846 
 and completed in about 1850. Previous to its construction, the dis- 
 trict depended on rain and rain-fed tanks and the fitful supply of 
 . water from the river. Paddy was not so plentiful as now. The cul- 
 tivation of paddy varied with the diversity of the seasons. In years 
 of drought, famine was the inevitable lot of the people and both men 
 and cattle suffered. Since its construction, the district is intersected 
 with canals, useful not only for purposes of agriculture, but also for 
 navigation. There are two main canals in the Western delta — the 
 EUore and Narsapur canals. In the Central delta, there is one — the 
 Amalapore canal. In the Eastern, there are five — the Samalcottah, 
 Cocanada, Coringa, Mandapeta and Bank canals. There is also a 
 Bank canal in each of the other deltas. All these are navigable, and 
 from these proceed a number of irrigation channels and paddy trans- 
 plantation has immensely increased. Sugar plantation, which was rare 
 in this district, is now to be seen almost everywhere. The extent of 
 cultivation is acres 794,829 as given in the jamabandi report for fasli 
 1297 (1887-88). 
 
 2. For the transport of produce thus plentifully raised, there is 
 'considerable facility afforded by the introduction of canals, and this 
 has resulted in the increase of price of every article. In 1854, when 
 the Western canals were only in progress, and I first went to Narsdpar, 
 the price of paddy on that side was only Rs. 6 or 8 for a putty of 200 
 kunchams (533 Madras measures or 66 merkals). Now it is Rs. 20 
 and it sometimes rises to Rs. 24. In the famine of 1876 and 1877, 
 the price rose to Rs. 50, there having arisen a great demand for it 
 from different parts of the country. The introduction of coasting 
 steamers in addition to navigable canals afforded easy passage for 
 transhipment of goods. The wealthier classes were much benefited and 
 the condition of ryots was so much improved by the general high 
 prices that instead of being in the hands of sowcars, they were sowcars 
 themselves. Even now, the majority of them are not in their hands. 
 They have enough to pay for G-overnment dues. The rich ryots lend 
 money largely on inam lands, taking them on long leases. The 
 inamdars in general, being poor Brahmins, are not capable of cul- 
 tivating the lands themselves, while the ryots have means enough for 
 carrying on extensive cultivation. They have enough of cattle, ploughs 
 and laborers. The famine of 1873 and 1877 brought in a considerable 
 number of poor people from the neighbouring districts of Vizaga- 
 patam and Ganjam, who found employment here in various wa^s.
 
 00X11 
 
 They engaged themselves as field laborers, coolies, palanquin bearers 
 and domestic servants. This rendered labor cheap. Most of them 
 have remained here permanently, and some are so far improved in 
 their condition as to become farmers themselves. 
 
 3. Besides the staple article of paddy, there are other crops, such 
 as gingelly and ragi, which take canal water when timely rains fail. 
 Chillies, turmeric, onions and garlic also take canal water and are 
 charged as wet crop. Tobacco is another article which is largely raised 
 in these parts. The finest tobacco is from the Lankas (islands) in the 
 river. This is exported to Moulmein and other places. The Lankas 
 are sold by auction for 3 or 5 years for considerable sums. They 
 are so sold periodically because of the baaeful or beneficial effects of 
 inundation almost every year. Some are swept away, while others 
 are enlarged and enriched by accretions and rich deposit of alluvial 
 soil. • 
 
 4. The vast increase in agriculture by irrigation has very materially 
 improved the condition of ryots. They have learnt to build substantial 
 and fashionable houses and upstair buildings unlike their former 
 thatched and slovenly ones. There has been considerable improvement 
 in the manufacture of jaggery. Iron mills for extracting juice from 
 sugar-cane are in general use now in the place of wooden ones, which 
 are not so effective in getting out all the juice. There has not been 
 any improvement in the implements of tilling. The ploughs of old 
 are still in use, which do not furrow the land deep. Some years back, 
 the Swedish plough was brought into this district and several experi- 
 ments were made, but this was found too heavy for the ordinary 
 bullocks here and the attempt to introduce it failed. Even the richer 
 ryots found no use with it, for the land here requires no great tilling ; 
 it is flooded with canal water for some time before tilling and the land 
 easily turned up and transplanted. A second crop is also raised, but 
 it is of inferior quality. It is only of 3 months' growth from February 
 to April and is chiefly used by the laboring classes. The land has ' 
 become very valuable. An acre of land sells from Rs. 100 to Es. 300, 
 and the inams from Rs. 200 to Rs. 500. 
 
 />. Prior to anicat, the joint-rent system was in use. Each village 
 was rented out jointly to the ryots of the village, and the leading men 
 and men of substance were held responsible for the payment of Govern- 
 ment dues. On account of paucity of produce owing to failure of rain, 
 the Amarakam, as the leasing out was called, was a matter of very 
 great difficulty. Nobody used to come forward to take up the village 
 or a portion of it, and the Tahsildars used to force it on some men of 
 substance. It was really a painful sight. Now, the land has acquired 
 so much value by irrigation that almost every inch of land is taken 
 up and the Government dues easily paid. There is great competition 
 among ryots to secure a right to the land. They come forward with 
 darkhasts even at the end of the fasli, offering to pay the assessment 
 for the whole year, though they could derive no benefit in that year. 
 The renting system has entirely disappeared except in the hill tracts, 
 and the ryotwari has taken its place. By this system, each ryot deals 
 directly with the Government and reaps all the benefit of his labor. 
 He commands more respect now, enjoys more comforts, wears better 
 clothes and lives in a more comfortable way.
 
 OOXIU 
 
 6. in the hill tracts, the joiut-rent system is iu use, but the villages 
 are given away for a fixed sum and not rented out for a term of years 
 as was the ease before the disturbance of 1879. The condition of the 
 people in these parts is also much improved. The rioting of 1879 com- 
 pelled the Government to clear the jungles and lay roads. The 
 communication to the hill tracts being more easy now, the hillmen . 
 have come more in contact with the people in the plains and learnt 
 the real value of things which they used to dispose of at a very cheap 
 rate in their own places or in the periodical markets on the outskirts 
 near the plains. Tamarind, myrobolams, soapnuts, hill- oranges, timber, 
 honey and wax are the chief products of those parts. The price of 
 these articles has risen considerably, and the hillmen are in a much 
 better condition than before. Paddy is also iu use in these parts, the 
 clearance of jungles and communication by roads having rendered cart 
 traffic easy. The food in general use here is chiefly paste from 
 tamarind seeds, mango see'ds and toddy from jiluga trees, which yield 
 toddy abundantly. Jonna is also in use in some parts. Transplanta- 
 tion of paddy is carried on under tanks in some places, the people 
 having learnt it from those in the plains. Survey and settlement are 
 also begun to be made. This will gradually find its way into the 
 more interior and the people will become more settled. Their educa- 
 tion is also attended to now. Local Fund 'schools are established in 
 certain localities and there is also a Superintendent of Hill schools. 
 
 7. The Local Fund Act has greatly added to the convenience of 
 the people everywhere. Roads have multiplied ; the indigenous schools 
 considerably improved and their number increased ; sanitation attended 
 to ; tanks and wells dug even in remote places. The number of 
 village schools has so considerably increased that there are now four 
 Deputy Inspectors (Sub-Assistants) and one Assistant Inspector for 
 the whole district in the place of one Deputy Inspector some 7 or 8 
 years ago. There is besides an Inspecting Schoolmaster for each taluk. 
 The Sub-Assistant Inspectors are stationed, one at Narsdpur, another 
 at EUore, a third air Eajahmundry and a fourth at Cocanada. The 
 district is considerably in advance in this respect also. 
 
 8. The improvement in all directions which has been the source of 
 happiness to the people has also been the source of great litigation. 
 Much of people's money goes to swell the revenue of civil courts and to 
 fill the pleaders' purse. People are more reckless in their proceedings 
 and squander away their money, caring only to win their cause, good 
 or bad. The couiitrj is in every way in a prosperous condition and it 
 is quite unlike what it was prior to the construction of the anient. Sir 
 Arthur Cotton, to whose genius this gigantic work owes its existence, 
 seems to have estimated the land revenue of the district at 22 lakhs 
 and expected to realize 50 or <)0 lakhs when the whole project was 
 complete, as will be seen from the Manual of the district. Now, from 
 the jamabandi report for fasli 1297, the land revenue appears to be 
 88 lakhs and odd. Other cesses, peishoush from zemindari estates, 
 quit-rent on inam and inam villages, come up to 14 lakhs and odd. 
 Salt, abkari, opium, ferry fund and income-tax amount to upwards of 
 6 lakhs. The grand total of the revenue of the district from all 
 sources reaches nearly that amount which the great benefactor, Sir 
 Arthur Cotton, roughly estimated some 40 years ago. The present
 
 OCXIV 
 
 project of Lord Connemara of couneoting this part of the country with 
 Madras by means of railroads will still more develope the resources 
 of the country and secure that felicity to the ill-favored aborigines of 
 Gran jam and Vizagapatam districts which their southern fellow-beings 
 invariably enjoy. 
 
 9, The only class that seems to have suffered is the weaver class. 
 Cloths of different descriptions are being imported from foreign coun- 
 tries, and as they are cheaper being machine made, the demand for 
 country cloths is much lessened. Only coarser cloths are now woven 
 here. The finer sorts of Uppada are also not in so much use. 
 Calcutta cloths find a more ready sale. 
 
 (4) Note by K. Subbarai/udu, Esq., DepiUy Collector, Bellary District. 
 
 I have finished the jamabandi of the division by the end of June 
 last and my examination of section I of tlfe famine analysis village 
 registers has also been nearly completed. The result of the enquiries 
 made by me is that, as compared with their state -'30 or 40 years back, 
 both the agricultural and trading classes seem to have made an 
 advance, and not retrogression, on the whole. Many an old ryot has 
 informed me that 40 or 50 years back there was much more jungle 
 and waste about this part of the country than is the case now, and 
 they attribute the gradual spread of cultivation to gradual increase in 
 population. Of course, this gart of the countr}^ cannot be said to be a 
 densely-populated one even now, but there seems no doubt whatever 
 that the population has been steadily increasing year after year ; and 
 but for the sudden and terrible check it received during the famine of 
 1876—78, when a good proportion of the then existing population died, 
 there is no doubt that the present population of this part of the country 
 would have been much more than what it now is. 
 
 Many of the old people I have talked to on the subject have 
 expressed an opinion that, although the extent under occupation is 
 growing with the population, the lands have not been yielding as much 
 now as they used to do some 40 or 50 years back ; and, when ques- 
 tioned as to what could be the reason for the reduction in the yielding 
 power of land, they explain that when they were young thoy observed 
 that the agricultural classes were constantly changing their holdings at 
 intervals of 2 or 3 years, giving up old lands and taking up new ones, 
 as there were then immense extents of jungle and waste available all 
 round, whereas they cannot and would not do it now-; so that there is 
 more permanency about holdings how than 40 or 50 years ago. The 
 above explanation given by the ryocs for reduction in the yielding 
 power of land seems quite reasonable, as the same piece of land if 
 cultivated year after year without intermission cannot naturally be 
 expected to yield as much as if left waste for an interval or as a piece 
 of virgin soil. 
 
 People say that another main feature of change now apparent is 
 that, whereas about 40 or 50 years ago there used to be only a few 
 important ryots and so wears scattered here and there in villages and 
 taluks, each having at times a number of families depending upon him 
 as so many parasites, tlie present aspect is that wealth and importance 
 are more generally distributed over the part of the country, thus
 
 OOXT 
 
 showing that all classes are now enjoying more independence than 
 before, and that the sweets of liberty have been tasted even by the 
 lowest orders. Even in other respects, the people on the whole seem to 
 be enjoying more material comforts than in days.past. The introduc- 
 tion of the machine-made goods into the market, although it has more 
 or less interfered with some of the native industries such as weaving, 
 &c., has no doubt done the masses and the public at large a world of 
 good by placing cheap and ready-made goods almost at their doors. 
 The fact, moreover, that, unlike in former days, people now dare to 
 enjoy any wealth they possess more freely and openly, also bears 
 testimony to the fact that there is now more peace prevailing about 
 the country than in the old days when, some people say, people would 
 not dare to wear even the jewels they possessed or build big and com- 
 fortable houses to live in, for fear of robbers and dacoits. It seems 
 also quite a fact that the bulk of the peoples' wealth — both cash and 
 jewels — used to be under ground in former days and not in current 
 use as now, and the fact that we are still coming across instances of 
 hidden treasure and valuables here and there all over the province goes 
 to show that in times past people thought their safes could only be 
 under ground and never above it. 
 
 The opening of the railways and telegraph lines and postal com- 
 munications have also been a source of great relief and alleviation to 
 the people in several ways. 
 
 As regards the condition of an average ryot in this part of the 
 country, my own experience and impression is that, provided the 
 country is not visited with anything like a severe drought or famine 
 necessitating the grant of dry remissions, he gets on tolerably well 
 without any kind of distress, living easily from hand to mouth. And 
 had it not been for the heavy expenses they have to incur now and then 
 in connection with marriage ceremonies occurring in their families, 
 there is no doubt the condition of the average ryots in this part of the 
 country would have been much better. Many an old ryot has told me 
 that occasional marriages occurring in a ryot's family from time to time 
 have been draining away from his pocket more than anything else, 
 and that, however miserly and economical an average ryot may be at 
 other times, he will be obliged to spend some hundreds of rupees, never 
 less than two, as I am given to understand, for a daughter's or a son's 
 marriage. They say the figure generally ranges from Rs. 200 to 
 Rs. 500 in the case of an ordinary ryot. It appears that these costly 
 marriages generally necessitate borrowing, and the ryot, though with 
 much reluctance, is obliged to go and open an account with the ever- 
 safe sowcar on account of these marriages. Debts incurred by ryots 
 from sowcars are often er conditioned to be liquidated in kind by annual 
 instalments, and the rates of prices fixed on the produce supplied by 
 him being at times even lower and cheaper than what are colloquially 
 termed ^^|)$;bew or the harvest season rates, the ryot necessarily 
 
 loses a good deal in this direction also in the long run. As he is 
 dunned by tlie sowcar for the payment of the instalment due at the 
 harvest season, the ryot cannot think of laying by any excess quantities 
 of grain, &c., produced on his lands until he finds high prices ruling 
 in the market, so that the fruit of the ryot's labor is in several in- 
 stances really enjoyed more by the sitting sowcar tham by the plodding
 
 COXVl 
 
 l:yot. It is thus that ryots generally find themselves entangled in the 
 sowcar's hands ; and once a ryot is so entangled, it seems really a very 
 difiicult matter for him to get out again. The account once opened 
 generally continues to run on, and occasional unfavorable seasons and 
 slight droughts, which seem to be more common in the Ceded Districts 
 than elsewhere, tend to contribute to the permanency of the connection 
 formed by the ryot with the sowcar so that the sowcar seems to have 
 become a necessary evil with the average ryot. 
 
 As I have already stated before, the ryot class people have no 
 doubt made an advance on the whole and not retrogression, and enjoy 
 more material comforts now than before, but there seems to be a 
 change in only one point which they do not seem to relish at all. I 
 mean the severity of the forest law, which they seem to complain has 
 curtailed many a concession they were enjoying before in that direc- 
 tion. In fact, they had no restraint whatever in that direction in 
 times past either under grazing or under fuel or timber. The ryot 
 class people, however, do not seem to understand the ultimate good 
 that the forest law is intended or expected to do to the country. 
 
 Now, as regards the trading classes, there does not, to my mind, 
 seem the least doubt that, as compared with times past, they have 
 grown both in quantity and quality. The method of business that a 
 sowcar or merchant adopts in these rural parts seems to me to be such 
 that, once starting in business, he hardly experiences a failure. They 
 generally undertake to deal in different things, and what little they 
 rarely lose in one is generally more than counterbalanced by their gain 
 in .others. They are, moreover, a proverbially economical and simple 
 class of people in these parts, and are generally unknown to luxuries 
 of any kind. Traders, unlike the agricultural classes, are, further- 
 more, people who gain throughout all seasons. They have not that 
 distinction between a good and a bad season which a ryot has, and, in 
 fact, a bad season or a regular famine does a trader more good than a 
 favorable one. The enclosed memorandum, containing statistics as 
 far as available, as regards income to the Ad6ni Municipality from 
 professional lax and tolls as also the number of cotton bales pressed in 
 the three cotton presses here, would also show that, excepting bad 
 seasons, trade here has been on the increase on the whole. 
 
 As regards recovery of this part of the country from the effects of 
 the famine of 1876 — 78, my humble opinion is that it has very nearly 
 recovered. Compared with the extent of Government assessed land 
 under occupation before the last famine of 1876-78^ similar extent now 
 under occupation in this division consisting of the Adoni and Alur 
 taluks is about 28,500 acres less. But of this difference as much as 
 nearly 19,00O acres is already under " Sivaijama " or unauthorized 
 cultivation, and there seems no doubt whatever that that, as well as 
 even the still outstanding difference, will come under permcawnt 
 holding before long. In this connection it is also to be remembered 
 that some extents of assessed land . under occupation previous to the 
 famine of 1876 — 78 have since been included in the forest reserves 
 formed, and that some of the lands so included are such as would have 
 already been under occupation had they not been so included in 
 reserves.
 
 coxvu 
 
 Statement showing income to the Adoni Mtmicipality from professional 
 
 tax and tolls. 
 
 Years. 
 
 1880-81 
 1881-82 
 1882-88 
 1883-84 
 1884-85 
 1885-86 
 1886-87 
 1887-88 
 1888-89 
 1889-90 
 
 Income 
 
 
 from tax 
 on arts. 
 
 from tol 
 
 RS. 
 
 RS. 
 
 ... 2,861 
 
 3,112 
 
 ... 3,146 
 
 2,650 
 
 ... a,354 
 
 3,991 
 
 ... 3,872 
 
 3,700 
 
 ... 3,577 
 
 4,350 
 
 ... 3,710 
 
 3,200 
 
 ... 4,729 
 
 3,950 
 
 .. 4,200 
 
 4,249 
 
 ... * 3,748 
 
 5,870 
 
 .,. 4,856 
 
 5,615 
 
 Statement showing number of bales pressed at the Cotton Presses in Adoni. 
 
 Year. 
 
 Number pressed 
 at the two presses 
 of Messrs. Dymes 
 
 and Co. and 
 
 Sabapathy Mu- 
 
 daliar and Co. 
 
 Number pressed 
 at all the three 
 presses including 
 
 the press of 
 
 Messrs. Framjee 
 
 and Co. 
 
 Remarks. 
 
 1881 
 
 1882 
 
 10,263 
 17,506 
 
 3rd Company's 
 
 not available. 
 
 Do. 
 
 • 
 
 1883 • 
 
 15,838 
 
 Do. 
 
 
 1884 
 
 14,663 
 
 20,964 
 
 
 1885 
 
 4,268 
 
 5,946 
 
 Particularly bad season. 
 
 1886 
 
 17,202 
 
 20,667 
 
 
 1887 
 
 18,982 
 
 22,090 
 
 
 1888 
 
 15,485 
 
 18,899 
 
 
 1889 
 
 26,832 
 
 38,095 
 
 
 1890 
 
 .13,309 
 
 17,735 
 
 Up to 30th July 1890. 
 
 iV.5. — The price of> pressed^bale of cotton ranges between Rs. 80 and Rs. 90. 
 
 (5) Note b// A. Sabapathy Mudaliar, Esq., Bellary. 
 
 The condition of the agricultural population two or three years 
 before the famine was the best that was ever known owing to the high 
 prices of cotton which ruled during the American war. But after the 
 famine, with a few exceptions, they (people) were reduced almost to 
 
 * Reduction due to some amount having been left uncollected at the close of the year 
 which, however, is included in the figure for 1889 -90, 
 
 £ E
 
 ecxviu 
 
 beggary. During the past 4 or 5 years they have been gradually 
 recovering their lost position. 
 
 Dry land was then sold at Es. 50 to 100 per acre ; now the price of 
 wet land is Rs. 30 to 40 for lands irrigated by the Hagari, and E,s. 100 
 to 150 for lands irrigated by the Tungabhadra. 
 
 This year (1890) the cotton and cholum crops having been excep- 
 tionally favorable and the cotton crops having ripened simultaneously 
 in almost every place, the laboring classes have benefited thereby to an 
 enormous extent. The wages which were paid were three times as 
 high as those ordinarily paid. This was the only year in which it was 
 known that the laborers were not found to be enough in number to 
 cope with the work. The extension of cultivation and the railways 
 running through the district have enhanced wages cent, per cent, as 
 compared with ordinary times before the current year. Wages are low 
 as compared with what they were before the famine. 
 
 The condition of the agricultural classes as a whole has not 
 generally improved in the same way as that of laboring classes owing 
 to deficient rainfall in the Bellary district, which is due to the denuda- 
 tion of forests ; with the exception of the agricultural classes, the 
 commercial and artisan classes are better off than they were before. 
 The agricultural classes have to pay higher wages to coolies. 
 
 The increase in the number of cotton presses and mills in the 
 surrounding districts has been the cause of giving technical knowledge 
 to lots of males and females, who are able to earn exceptionally high 
 wages, i.e., '10 to 15 rupees per man per month and 6 to 10 rupees 
 per woman, who do work on the piece-work system. The position 
 of the artisan class is also very much improved, such as masons, stone- 
 dressers, carpenters and blacksmiths, who are .required in large 
 numbers to meet the demand from the factories and the railways. In 
 their case also the wages have gone up quite 50 per cent., if not more. 
 The ordinai'y wages for masons, carpenters and blacksmiths used 
 to be 8 annas, but it is now over 12 annas according to capacity and 
 qualifications. 
 
 The prosperity of the people in general is shown by the large 
 demand there is for both imported and locally-manufactured goods. 
 The starting of the mills in India has been the cause of cheapening the 
 prices of piece-goods and yarn by at least 30 per cent, as compared 
 with what it was about 10 years ago. 
 
 Imported cloth goods now chiefly consist of the finer varieties, not 
 the coarser kind generally used by the people. 
 
 The weaving industry is going down. The higher classes use the 
 finer varieties of imported cloth, and the lower classes prefer locally- 
 manufactured mill cloth. 
 
 In the Bellary Spinning and Weaving Mill, there are 100 looms, 
 but only 50 are being now worked. In course of time the whole 
 number will be utilized. The whole number will produce on an 
 average 1,000 lb. of manufactured cloth every day. The production 
 of yarn will be about 4,000 lb. daily, of which 1,000 lb. will be made 
 into cloth if all the looms are worked.
 
 CCXIX 
 
 
 Before the recent 
 rise in exchange. 
 
 
 
 Ten years ago. 
 
 Twenty years 
 ago. 
 
 
 R8. A. P. 
 
 KS. A. 
 
 p. 
 
 R8. A. p. 
 
 Cloth for males, hetter sorts . . 
 
 4 10 
 
 3 12 
 
 
 
 3 8 
 
 Cloth for males, coarse . . 
 
 9 
 
 7 
 
 
 
 6 
 
 Dungarj- cloth 
 
 Cloth for females, coarse. 
 
 1 13 
 
 2 2 
 
 1 4 
 1 12 
 
 
 
 
 
 1 2 
 1 10 
 
 colored. 
 
 
 
 
 
 Brass and copper vessels per seer 
 
 4 to 4^ annas. 
 
 Sj annas. 
 
 7 annas. 
 
 of 21 tolas. 
 
 
 
 
 
 Iron, per 20 maunds or .500 lb. 
 
 17 to I?! rupees 
 up to the year 
 befofe last. 
 For 1 1 months 
 last year, 23 to 
 
 
 
 About 20 years 
 ago, 35 rupees. 
 
 Glassware 
 
 30 rupees. 
 From i to i of 
 what it was 
 before. 
 
 •• 
 
 
 
 (6) Note hy B. Snbbramania Aiyar, Usq., B.A., District Registrar, 
 
 Tinnevelhj, 
 
 Changes i)i the value of land. — There is no ready and easy means of 
 tracing out the various sales to which particular lands have been subjected 
 in the course of the past 25 years. The only course open was to see hy 
 going through a good number of instruments of sale in the registers 
 whether they contained* any references to previous sales affecting the 
 same properties. Even this was not attended with complete success. 
 The lands mentioned in the previous and subsequent sales ai-e not 
 wholly identical. Prior to 1874, the lands were not described by their 
 Survey numbers, and there is no means of knowing as to what Adangal 
 numbers correspond to the present Survey numbers. Besides, the 
 price of the same land is not distinctly ascertainable in all the years, as 
 such lands are found intermingled with others in subsequent transac- 
 tions, or only a portion detached and alienated. In ascertaining the 
 price of one acre of average nun j ah and pun j ah, recourse was had to 
 the method of ascertaining the price of any piece of land in one year, 
 and finding out the value of the same land in subsequent years, or of 
 lands in proximity to it, bearing the next previous or succeeding 
 number. The fluctuation in prices is noticed to be not based on any 
 principle, and the only explanation which can be rendered for this is 
 that the price varies according to the grain produced by it, /.«"., in 
 famine years and those of ordinary scarcity the value of grain being 
 rather high, the productive lands go for a very high price, and others 
 fetch only an inconsiderable amount. Further, it appears that tJiere is 
 a general tendency for the increase in the number of landholders, 
 which means diminution in the extent held by individuals, and conse- 
 quently each man is able to devote better attention to lands under his 
 care, which, therefore, in their impi^oved condition, rise in value. As 
 civilization advances, the artisans, such as carpenters, bricklayers, 
 smiths, &c., find enough of work for them, and an increasing demand
 
 ooxx 
 
 for them has tended to increase the rate of their wages nearly three- 
 fold during the last 25 years. Persons who were allowed 3 annas a 
 day before now earn 8 to 10 annas. Most of these people who can 
 earn money by hard labor are in a position to save enough to purchase 
 lands and live comfortably. 
 
 On account of increase in population, there is undoubtedly an 
 increase both in the number of agriculturists and in the extent of land 
 cultivated, as most of the waste lands are now rendered cultivable for 
 ordinary nunjah crops. And the bigger vakils and other well-to-do 
 people, instead of hoarding up their money or lending it out on 
 interest, prefer investing it in lands which they consider safe. More- 
 over, the chief agricultural classes of Southern India have been 
 impoverished by their constantly running into debts on account of 
 their lavish expenditure on the occasions of marriages and deaths, 
 when their agricultural resources are stinted, and when they are too 
 lazy or too uncondescending to take to other industrial professions. 
 The result is the higher classes, who were sole landholders before, 
 have now to give up their land little by little, whereas the poor 
 laboring classes have acquired land by dint of their economical savings. 
 As agricultural profession is found to be more safe and secure by the 
 lower classes, they lay out their earnings on landed property. It is 
 this tendency that partly causes the rise in the value of land in spite 
 of deficiency of its yield. 
 
 The gradual increase in population, a population depending entirely 
 upon agriculture for their livelihood, contributes as much to this rapid 
 increase in the value of lands as the artificial improvements brought to 
 bear from time to time upon the productiveness of the lands them- 
 selves. More than 30 years ago changes in the ownership of holdings 
 will compare by an extreme minimum if viewed in connection with 
 the rapidly-increasing divisions of property at the present day, and the 
 nature of the tenures under which they are held. The causes seem 
 to be more or less due to the increased resources of the country, to 
 the enterprise of the enlightened section of the community, and to the 
 hard competition of the times. There has been more accumulation of 
 capital, and more of the nature of sinking funds than what the history 
 of a past age will teach us. In certain directions, the increased value 
 of land is due to the improved productive nature of the soil, and to 
 the facilities afforded by irrigational works. The idea of acquisition 
 helps the idea for permanent property, and owing to competition in the 
 same market, the values are generally very high. The value of the 
 land in general has thus increased, and the increase is due to the desire 
 for permanent property in some shape at any cost. In short, accumu- 
 lation of wealth, increased investment, competition, and over-population 
 contribute to the rise in the value of land. 
 
 In what directions the agricultural class has progressed. — The agri- 
 cultural class embraces three sets of people — 
 
 (1) Landholders who do nothing more than let their lands and 
 collect the rents. 
 
 (2) Those who have some lands of their own which they cultivate 
 themselves^ and who also take up lands from others on lease, if circum- 
 stances would peymit it.
 
 cexxi 
 
 (3) Those who have no lands of their own, but only cultivate 
 the lands of others on different terms of leases. 
 
 Those coming under the second and third class have- improved their 
 status by yearly fresh acquisition of land, and by converting waste 
 lands into cultivable ones. With the exception of a small percentage 
 who are engaged in trade, the major portion of those falling under the 
 first class are by degrees growing poorer and poorer by selling or 
 mortgaging their property. And it is the cry of this section of the 
 population that is likely to be the cause of the general impression that 
 the condition of the agricultural classes is going down. 
 
 The general feeling of the agricultural classes is one of satisfaction 
 with their lot ; this satisfaction can be said to be unalloyed if the rigour 
 of the forest laws were mitigated, and nature were less fickle in the 
 matter of water-supply — rain. The general want of rain in season has 
 driven these classes to the necessity of sinking wells. Lands that were 
 30 years ago wastes overgrown with shrubs, &c., are now under culti- 
 vation. The extension of railway and other communications has not 
 failed to bring in their train to the cultivator advantages which were 
 wanting 30 years ago. He now carries the products to the market, 
 where he secures the highest price possible. He is no more under the 
 painful necessity of parting with the fruits of his labor for a nominal 
 price. The mode of cultivation, the mechanism employed in the act of 
 raising water and of turning up the soil, &c., have, however, remained 
 practically the same as they were 30 years ago. The conservative 
 instinct of the Indian cultivator abhors all innovation in these direc- 
 tions, and he rightly or wrongly prefers his mode and mechanism to 
 all others. 
 
 The people are happy in the safety they enjoy under the good 
 Government of the country. A good Government has brought safety 
 along with it, and hence property has been rendered more secure, and 
 there is nothing of that dread of life or of the prospect of losing 
 property, which places the ryot in eternal anxiety, in the absence of an 
 organized form of Government. 
 
 In ivhat directions the agricultural class has deteriorated. — The causes 
 of deterioration are — 
 
 (1) Heavy marriage expenses. 
 
 (2) Factious spirit and consequent expensive litigation. 
 
 (3) The neglect of the ryots to give any sort of rest to^ the cul- 
 tivable lands. 
 
 (4) The lands are not as of old well manured, the consequence 
 being a low yield with increased population. 
 
 Notwithstanding the safe and peaceful situation of the country, 
 there has been some diminution among the agricultural classes. To be 
 a ryot is considered among the so-called enlightened section something 
 akin to being a serf in an enslaved country. Various other professions 
 have been called in aid, and agriculture has been partially abandoned 
 among the gentry who have taken to the renting system. Many of the 
 population have gone to other places in pursuit of varieties of trade or 
 professions. Reservation of callings to one particular set is gradually 
 dying out. And with the spread of education, less regard, is paid to
 
 COXXll 
 
 aristocratical authority, and the village panchayat system has almost 
 ceased to be an institution of the country. 
 
 Given the same laws, the same situation, and the same form of 
 Government as that of a highly advanced country, what will be the 
 situation of the ryot now ii he does not go in for the foreign import- 
 ations of the market for the desire of keeping up appearances, for the 
 interchange of callings, or for the affectation of the many foibles which 
 now attend on him ? One other great feature which adds to his misery 
 is the laxity of the abkdri rules, the spread of stills and shops, and the 
 encouragement given to wholesale and retail systems, which place the 
 juice at the door of the ryot at cheap rates. Again there are the forest 
 and salt laws, the one depriving him of the use of the forest, and the 
 other stinting the supply of the necessary of life to himself and to his 
 cattle. In this aspect of the question, the condition of the ryot may 
 fairly be said to have deteriorated. 
 
 Other industries. — As regards other industries, some show improve- 
 ment, some are stationary, and others show decline. The mason, the 
 carpenter, the blacksmith, and the brass-smith are now prosperous more 
 than before. The potter has remained in the same position as 30 or 25 
 years ago. It is in the case of the weaver that one finds almost 
 complete collapse. The weaver stands helpless before the gigantic array 
 of machines and machine-made cloths of the mighty Manchester, and 
 realizes in the application to India of the principles of free-trade the 
 plain fact that his ruin is not far off, and cries for protection. 
 
 Native industrial arts have generally declined. They were in times 
 gone by held in deservedly liigh esteem and every encouragement was 
 given to the proprietors by the former rulers of the country. With the 
 beginning of English rule, and the importation of machinery, from the 
 cooking stove to the locomotive engine, native industrial arts received a 
 death-blow, and there are now glasses for lotas, and the shining chintz 
 for the thick elegant cotton fabric of the native dealer. Government 
 seems to have felt the necessity of reviving them wherever possible. 
 In this district, trade in senna leaves, jaggery, and cotton seems to be 
 the most flourishing at present, as the labor bestowed on them is 
 attended with more profit. 
 
 Oeneral JRernarks. — That the agricultural classes are on the whole 
 improving there is no doubt. There are larger areas now under 
 cultivation. Greater number of people find a living in agriculture. 
 Larger varieties of things are grown. Large landed properties found 
 accumulated in a few hands are now split up and spread over a larger 
 number of hands. The condition of the actual cultivators is much better 
 than what it was some twenty years ago ; some big mirasidars may 
 perhaps be seen ruined here and there ; but it is no proof of the agri- 
 cultural classes as a whole going down. 
 
 Before the beginning of the present generation, the agricultural 
 population of the country was divisible into only two sections — the 
 landlords and the tillers of the soil. The relation between these two 
 classes was anything but satisfactory. The landlord had the " lion's 
 share " of the produce of the soil ; and he allowed only a pittance just 
 to keep the body and the soul together of the toiling cultivator. The 
 landlord maintained the cattle, supplied the expenses of cultivation,
 
 OOXXUl 
 
 seed, manure, &c., while all the manual labor was done by the cultiva- 
 tor, and he was paid at the harvest season about a twelfth of the produce 
 (0^i.TOfl ^^uiSL for a kottah), as it is called in this portion of the 
 country. This, together with a pittance of other ^su^jb^m-ld^ would 
 not give a family of three or four souls more than 8 kottahs a year of 
 paddy at the highest, which quantity is barely sufficient to maintain the 
 family. For this payment, the landlord exacted other work too from 
 him. He must do all the menial services for the landlord's well-being 
 utterly unconnected with cultivation. The landlord would usurp any- 
 thing found with his tenant which would be of any use to him. In 
 fact, the landlord would get everything for his living without paying 
 anything for the same — labor and materials fcr his well-being. 
 
 Thus the condition of the cultivator was far worse than what it is 
 at present, while that of the landlord was undoubtedly far better. In 
 addition to this comparatively larger share in the income, the land- 
 lord's domestic economy was much greater. Luxuries were unknown. 
 Expenses of litigation far less. Diflferenees of civil rights settled in 
 the village panohayat without much cost. The less complicated laws 
 of the Revenue Department placed redress at a much less cost to the 
 landlord. Thus the landlord was a great saving party, while the culti- 
 vator was only a toiling macliine, without any saving of his own. 
 
 The work of the present generation is the complete change of this 
 state of the relation between the landlord and the cultivator, and the 
 creation, or more appropriately the increase and strengthening, of a 
 middle class of people who are landlords and cultivators in one. The 
 original landlord has grown now lazier by his frequent visits to 
 towns and the importations to his very door of the luxuries of the 
 town, &c. ; his life has become more expensive. His uncalled for 
 luxuries, unnecessary litigation, the complicated and expensive laws, all 
 these expenses combined with the reduced income noted below have 
 brought down the condition of the landlord on the one hand, and on 
 the other hand, the daily increasing independence of the cultivator, his 
 boldness to refuse to give the landlord anything more than his actual 
 due, using his time and labor to more profitable things, his savings, &c., 
 have enabled him to buy cattle of his own to meet the expenses of culti- 
 vation from his own pocket without depending on the mercy of his 
 usurious landlord, who, saved of these services, is paid a much less share 
 of the produce. 
 
 The said cultivators have gone on further. They began to ad- 
 vance sundry sums to their landlords, and have bought, in most cases, 
 small bits of land of their own, which they cultivate themselves, and 
 obtain all the produce without a sharer. Many working people of 
 other professions and castes have invested their savings in purchasing 
 lands, and they have taken to cultivation in addition to their original 
 profession. 
 
 The second class of people, besides cultivating their own lands, take 
 a lease of the lands of the first class of ryots, and cultivate them and 
 obtain a share of the cattle they maintain, and of the cultivator if they 
 can. In many cases, these men sub-rent such lands to the third class 
 of people, and obtain a profit on both sides by this bargain. The second 
 class of people, being men of some substance, have greater credit with 
 the first class of people on the one hand, and being fellow workers on
 
 cexxiv 
 
 the field, are found to be less oppressive and more convenient for the 
 third class to deal with ; and hence they are used as middlemen by the 
 first and the third classes. It is this second and third classes of people 
 that reap the full benefits of the advantages of the British rule, and it 
 is those falling under the first class, if they do not pursue other ways 
 of getting money, and if they waste their time, energy and money in 
 useless luxury, &c., that are going down. 
 
 All tlie advance made during this generation is in no way pro- 
 portionate to the intentions of the Grovemment and their trouble and 
 expenses in establishing colleges and training institutions at the Pre- 
 sidency towns to introduce into the country the scientific modes of 
 cultivation of the Western nations. The country has adopted only 
 such portions of the advantages which the force of the surrounding 
 circumstances in their natural course have driven the people to adopt, 
 and nothing more. It is still left to the future politico-economic 
 statesmen to find suitable ways to introduce into the country the more 
 profitable modes of scientific cultivation, and to the sympathising 
 scientist to devise means suitable to the low state of the poor country 
 to induce and lead its children step by step to reap the advantages of a 
 scientific agriculture. 
 
 That trade, manufacture, and handicrafts have increased a great 
 deal during the present generation no one would dare to oppose. The 
 introduction of the railv/ays, the improved roads, and easy communi- 
 cations, the establishment of the village post offices, the increased 
 demand and supply, have tended to increase every class of trade from 
 the petty retail sales in the streets and villages to wholesale commerce. 
 The variety of things bought and sold in these days, and their quality, 
 and quantity compared with those found in the markets some twenty 
 years ago, show a great deal of advance, A largei' number of people 
 are employed now in these trades. Persons of every caste take up the 
 trades suitable to their means and ability. The first class of agricul- 
 tural population noted above are seen here and there using their time 
 and money to their advantage in trading. Those of the second and 
 third classes, too, carry on petty inland trades during the time they are 
 free from their work on their lands. Persons of other ancestral profes- 
 sions have cast off their prejudices, and freely take up trading if they 
 find it more convenient and paying than those of their forefathers. 
 
 Manufacture and handicraft. — Here again the quality and the 
 quantity of the work turned out, and the variety of such work done in 
 these days, are far higher than what they were during the last gene- 
 ration. The caste which, in the majority of cases among the natives, 
 distinguishes the professions is now fast fading away. It is needless 
 here to enumerate the several branches of industry that are improved, 
 and that are newly started and starting up. Suffice it to say that our 
 artisans and manufacturers successfully imitate the works of the western 
 nations, and produce the necessary articles nearly equal in quality and 
 durability to those of their teachers and sell them much cheaper. The 
 hands that used to be idle or to be content with the making of rude 
 articles and low prices now find ample work and good samples, and a 
 ready sale to pay their labors. 
 
 In conclusion, it may safely be stated that the state of the country, 
 is much better than what it was some twenty or twenty-five years ago
 
 OCX XV 
 
 in every respect — agriculture, manufacture, and commerce. The tillers 
 of the soil, the artisans, the manufacturers, and the traders — petty 
 and wholesale — are, as shown above, getting strengtliened day after day 
 in their natural course. Whatever may he said of the proportion of 
 increase under these heads to the attempts, inducements, and training 
 afforded by Government, and whatever may be thought about the 
 causes of the shortcomings in this proportion, the fact lies bare to 
 every observer that the lower and middle classes, i.e., the working 
 classes, are now much better off than what they were during the last 
 generation, though not as much as they ought or would be expected to 
 be under the particular attention paid by our Western rulers to improve 
 their condition by the establishment of several colleges and training 
 institutions all over the country. The fault is not of the poor classes, 
 but it is due to the indifference of their richer brethren, who, instead of 
 teaching and leading them, look to their own selfish ends, or spend 
 their energies and wealth in questionable directions. 
 
 (7) Condition of the Weaving Industry in Madura. 
 
 Note hy V. Rajagojmla Chariar, Esq., B.A., B.L., 
 District Registrar, Madura. 
 
 Nmnher of silk wearers' houses. — The town of Madura is divided 
 into ten Municipal wards. Of these ten wards the silk weavers occupy 
 the 1st, 2nd, 3rd, 4th and 9th wards, and the number of silk weavers' 
 houses may be roughly estimated at 5,000 or so. Houses are multiply- 
 ing in these wards and the fresh additions are generally thatched huts 
 occupied by the laboring classes. It would appear that weavers from 
 other parts of the district, finding no occupation in their respective 
 places, have migrated to the town of Madura and settled themselves 
 down here. The records of the Municipal office show that about 281 
 new houses have been erected in these wards. 
 
 2. Number of silk weavers in the toivn. — The silk weavers as a class 
 are a very prolific people. They are said to multiply more rapidly 
 than the other classes. Fixing, therefore, the inmates of each house to 
 be from 4 to 5, the silk weavers' population of the town of Madura may 
 be roughly estimated to be between 20,000 to 25,000 including females 
 and children. Of these, about 10,000, including females, may be said 
 to belong to the actual cooly class who earn their living by daily 
 wages. Next to these come the petty traders who number from 400 to 
 500 families. Some of these sell threads, having purchased them in 
 retail from the bigger merchants ; some again sell lace in retail ; some 
 advance small sums of money to the holders of looms and order a small 
 supply of cloths and sell them to the richer merchants. Some are 
 brokers who collect cloths manufactured in the town and sell them 
 either to the merchants in the town or to those abroad and very few are 
 capitalists who have any very large trading concerns. The last class 
 may almost be counted on one's fingers and it is said they are likely to 
 be only between 10 and 20 on the whole. It is the brokers who form 
 a comparatively large number. Some of the silk weavers have become 
 agriculturists, finding that the profession of weaving does not pay. 
 Their holdings are small and they only eke out their maintenance from 
 the results of the agricultural labor. Some are said to keep carts and 
 
 F I"
 
 CCXXVl 
 
 bulls and to be employed in collecting sand from the river for building 
 purposes. 
 
 .S. Their average, income. — Of the class of merchants, those who get 
 profit of about Us. 100 and more per month are only 5 or 6 ; about 20 
 or 30 get from Rs. 50 to Rs. 100 and those who get from Rs. 5 to 
 Rs. 20 are about 400 or 500. The profession of brokers is not very 
 remunerative. A broker makes a profit of one anna on every rupee, 
 but to earn a profit of 30 or 40 rupees in a month he has to employ 
 two agents — one to go about the town and watch the progress of the 
 cloths entrusted to the laborers and another to keep accounts. Very 
 often he has to borrow money and pay the weavers in advance. 
 
 The average income of a cooly family is Rs. 5 a month and it never 
 goes higher than Rs. 10 a month. Females also work ; some are 
 employed in preparing the threads for weaving, some in the dyeing of 
 cloths and others in the marking of spots or what is called fundadis. 
 Boys of 12 years and more also earn wages and generally get from one 
 rupee upwards. 
 
 4. The quantity of cloths manufactured in the town, their different 
 kinds and the average values thereof. — The number of looms in the town 
 is about 3^500. About four cloths can be woven from a loom in a 
 month. This gives a total of 14,000 cloths per month for the whole 
 town. 
 
 The different kinds of cloth manufactured are the following : — 
 
 Puluhka selais — Of the value of Rs. 2 to Es. 3|. 
 
 Urumals — Of the value of Re. 1 to Rs. 6 per taw or tari, consisting 
 of 8 each. 
 
 Plain male cloths with silk borders — Of the value of Re. 1 to Rs. 4. 
 
 White laced head kerchiefs dyed — Of the value of Rs. 7 to Rs. 12, 
 the charge for dyeing being Rs. 2 or Rs. 3 in excess. 
 
 Chittadais — Of the value of Rs, 3 to Rs. 8. 
 
 Female cloths of sorts. — The ordinary ranging from Rs. 6 to 
 Rs. 20 and special cloths from Rs, 40 to Rs. 80. 
 
 Upper cloths — Of the value of Rs. 10 to Rs. 15. 
 
 Es. 500 is the highest value of a cloth which has ever been made 
 in Madura. Merchants of their own accord do not order for cloths of 
 value of more than Rs. 80 to Rs. 100. The cloths made ordinarily 
 range from Rs. 6 to Rs. 10 only in value. 
 
 The introduction of cotton twist from England, of lace from France, 
 as well as of even the dyeing stuff from Bombay has considerably 
 affected the value of the cloths made in the town and necessarily the 
 wages to the coolies and the profits to merchants. Of the 14,000 
 cloths above mentioned as being made in a month in the town, for 
 7,000 to 10,000 cloths the inferior brass lace is used and the value of 
 these do not go over Rs. 6 at the utmost. Their average price may be 
 fixed at Rs. 2| per cloth and this gives the sura total of Rs. 17,500 to 
 25,000. The average value of an ordinary cloth with good lace 
 may be fixed at Rs. 7 and supposing that good lace is used for the 
 remaining 4,000 cloths, their approximate value amounts to Rs. 28,000. 
 Thus the total value of cloths made in the town in a month may be 
 fixed at Rs. 50,000 to Rs. 60,000.
 
 CCXXVll 
 
 To get an impression of how much of this sum of Rs. 60,000 actually 
 benefits the townsmen and how much goes to other countries and 
 places, what the component parts of a Madura cloth are must be exami- 
 ned. Let me take for illustration an ordinary white cloth which is sold 
 in the town for Rs. 10. The different items which go to make this 
 sum of Rs. 10 may be described as follows : — 
 
 RS. A. p. 
 
 1 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 1 
 
 
 
 
 
 1 
 
 
 
 1 
 
 4 
 
 
 
 6 
 
 
 
 
 
 Value of the thread 
 
 Cost of preparing the same for weaving 
 
 Profit earned by the merchant who sells the 
 
 thread 
 Cost of fastening the thread to the loom 
 Wages for weaving thread into a cloth 
 Value of the lace 
 
 Merchants' profits including brokerage 
 
 Total 
 
 When this cloth is dyed the excess charge is as follows : — 
 
 RS. A, p. 
 For the first and rough coloring ... . 012 
 
 For the making of spots ... ... 012 
 
 For dyeing them over again ... . .. 012 
 
 Miscellaneous ... ... ... ..040 
 
 8 
 1 
 
 8 
 
 8 
 
 
 
 
 
 10 
 
 
 
 
 
 Total ...2 8 
 
 Thus the great portion of the value of a cloth goes for the lace 
 which is manufactured in France. Then by the cotton twists used, it 
 is the English merchants who are benefited. . The dye is also j)repared 
 abroad and the greater portion of Rs. 1-12-0 spent for dyeing goes 
 also to other hands. The portion of Rs. 12-8-0 which actuallj^ circu- 
 lates among the townsmen may be taken at the highest to be from Rh. 
 4 to Rs. 5 or one-third of the value of the cloth. This calculated with 
 reference to the Rs. 60,000 worth of cloth yields a total amount of Rs. 
 24,000 to Rs. 30,000 and this amount may roughly be fixed to be the 
 sum earned from the industry by cooly upwards to the richest merchant. 
 Deducting again Rs. 5,000 or so as being the profits earned by 
 merchants, there remains Rs. 25,000 to be distributed amongst 5,0<»0 
 families, giving an average of Rs. 5 per family, the amount mentioned 
 above, as being the average income of a family. Grenerally speaking 
 the industry is becoming day by day less profitable to the actual 
 working classes. The causes thereof are not far to seek. Prior to the 
 importation of cotton twist, some fifty years ago, it would appear there 
 were in the town of Madura 2,000 to 8,000 families employed in 
 spinning out threads. This vocation has entirely ceased now. Again, 
 prior to the importation of lace there were 500 Mussulman families 
 engaged in making lace, and in their place there are, it Avould ajopear, 
 only 10 families employed in making country lace. The preparation of 
 coloring materials was at least done locally till a year or two ago, but
 
 CCXXVIU 
 
 this too has been superseded by the Bombay article. As a necessary 
 result of the cessation of all these vocations, the labor is now directed 
 entirely in one direction towards weaving, and it is in consequence 
 very cheap. What used to be paid for at Rs. 2 in former years is now 
 remunerated by 1 rupee only. 
 
 Even as regards the merchant class, the general complaint is that 
 the trade does not pay. It may be that a larger number of cloths are 
 now made than before, but what merchants make as profit by reason 
 of the cheapness of the commodity and keenness of competition seems 
 to be considerably less than what it was in former years. A cloth 
 which was sold for Rs. 60 is now sold for only Rs, 30. 
 
 As a curious illustration of how the importation of the English- 
 made goods has affected the local weaving industry, it may be 
 mentioned that the weavers themselves of the town of Madura do 
 hardly use the cloths woven by them. Mulls and piece-goods have 
 taken the place of the home-made articles and if the richer class should 
 seek for some country cloths, it is the Oonjeeveram cloths that are 
 made use of. The females likewise use the T/iombu, and if they seek 
 for some better country-made cloths, they purchase the Koranadu 
 cloths. Thus it happens that one or two per cent, of the town-made 
 articles are sold in the town itself and the rest are sent abroad. 
 
 The habits and manners of the silk weavers as a class. — Silk weavers as 
 a class lead a simple life. Their food is simple and consists of cholum, 
 cumbu and other dry grains. Rice is used by comparatively few 
 persons only. Their clothing is simple. The females wear a cloth of 
 Rs. 2 worth only, except on festive occasions, when they wear the Kora- 
 nadu cloths. House accommodation is necessary for their profession, 
 and each endeavours, therefore, first, to secure a house for himself. 
 They are not also without the desire for ornaments. Even the poorest 
 household are mentioned to have some gold jewels. A silk weaver's 
 property consists generally of his house and ornaments. Marriage is 
 costly with them. About Rs. 63 must be paid to the bride even by the 
 poorest man. To meet this item of expenditure, almost every cooly 
 before he enters on his profession begins to subscribe to some CHit 
 transaction or other and to save out of his hard earned wages 1 rupee 
 or so to be paid monthly for a series of years extending from five to 
 seven. Before he earns his prize in his turn, necessity, however, often 
 compels him to borrow, mortgaging his chit amount and the house 
 owned by him. It is such documents that are registered in large 
 numbers in the town offices of Madura. There is another peculiarity 
 about these silk weavers. They seldom borrow from other than their 
 castemen. In case of loans of large sums, probably they may resort to 
 the Nattukkottai chetti, but (ill ordinary loans are contracted from one 
 of their own community. 
 
 In addition to the town of Madura, the weaving industry is carried 
 on in the following places in the district — Dindigul, Paramakudi, 
 Ralni, Tirumangalam and Aruppuk6ta. In Dindigul only laced cloths 
 are made to the value of Rs. 1 or so. In other places rough country 
 cloths only are made. In all the stations, the industry is said to be 
 declining so much so that weavers from these places come up to 
 Madura for employment and overcrowd the market.
 
 CCXXIX 
 
 (8) The Condition of the Laboring Classes. 
 
 Note by H. Subbaraya Aiyar, Esq., Deputy Collector, 
 Coinibatore District. 
 
 I have had ample opportunities of observing and judging of the 
 condition of the labouring classes daring the last three decades, and 
 can confidently say that it has materially improved in every way. 
 Agricultural labourers consist of two classes (1) the permanent form 
 servants, and (2) those employed temporarily on daily wages when 
 agricultural operations are carried on extensively. 
 
 The farm labourer is paid monthly and in kind, and is also given, 
 to cidtivate on his own account, small plots of land belonging to his 
 master. He also receives small presents and loans on occasions of 
 festivals and marriages, besides a certain percentage of the produce 
 harvested. He is also permitted to work elsewhere during certain 
 months in the year when there is no work in the fields or on the thresh- 
 ing ground, and thereby earn what little he can additionally. The 
 temporary labourer is paid either in kind or in money or both. There 
 was a time, within my own memory, when the labouring classes chiefly 
 depended for work on agricultural operations in the year, and when 
 these were over, they found it very difficult to maintain themselves. 
 Now the demand for work, in the fields owing to increased cultivation, 
 in the Imperial and Local Fund departments, in the Railway depart- 
 ment, in the coffee, tea and cinchona estates, in the cotton presses, 
 weaving and spinning mills and in other various departments of trade 
 and agriculture, has become so great within the last thirty or forty years, 
 that the labouring classes do not find it difiicult to obtain employment 
 freely on increased wages during the prosperous years. The labourers, 
 especially in the maritime districts, have also begun to emigrate freely 
 in large numbers to foreign countries, where they find work on higher 
 wages, and thereby secure competence. 
 
 The rise in the price of food grains and other necessaries of life, the 
 steady increasing demand for work, the development of trade, the large 
 scope now offered for emigration, the high mode of living suitable to 
 the period of advancement and civilization, and the fashion of the day 
 to naturalize whatever is foreign — all these have undoubtedly enhanced 
 the rate of wages, not only for the skilled, but also for the unskilled 
 labourer, to a considerable extent. In localities where low caste labour- 
 ers, owing to caste prejudices, are unable to compete with ca<=te labourers, 
 the latter^ as a rule, demand exorbitant rates of wages and are getting 
 themselves enriched more than the former. I have generally found a 
 harmonious, and on the whole, sympathetic relations existing between 
 the landholders and the labouring classes both in tlie districts in which 
 I have served and in those which I have seen. 
 
 As far as I have seen and known of the condition of the labouring 
 classes, I may safely say it is not what it was thirty or forty yenrs ago, 
 but has materially improved in several respects, and is improving, and 
 will, 1 believe, improve steadily. Those who once formed the landless 
 class, the petty traders, the artizans and the weavers who have chosen 
 to work in the fields and elsewhere, have now acquired landed property
 
 ccxxx 
 
 to some extent ; the exact extent I am unable to say, as I have no 
 records with me to ascertain it. But reference to the records of the 
 registry offices, as well as to the records of the villages, will, I am sure, 
 furnish ample evidence regarding the same. 
 
 If at all there is any class of people who are getting deteriorated, it 
 is the peasant proprietary class, who do not work in the fields themselves 
 owing to religious scruples and caste prejudices, but depend for work 
 on the labouring classes ; and next to these come those who depend 
 upon the munificence of the well-to-do classes and earn their livelihood 
 by rendering religious and other services. I am really at a loss to find 
 any remedial measures to improve their condition ; and, unless they 
 resort to laboiu", they must die out. 
 
 (m) — Tables showing the Income, Expenditure, Scale of Diet, SfC, 
 in different Countries. 
 
 (1) Statement showing the amount of Imports and Exports of all Nations 
 measured In/ value {extracted from '' Mulhall's History of 
 
 Prices''). 
 
 
 
 Millions Sterl 
 
 ing. 
 
 
 Per in- 
 habitant 
 
 
 
 
 
 
 
 1850. 
 
 1860. 
 
 1870. 
 
 1880. 
 
 1884. 
 
 in 1884. 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 Great Britain 
 
 193 
 
 .S76 
 
 547 
 
 698 
 
 686 
 
 19-0 
 
 France 
 
 75 
 
 167 
 
 227 
 
 339 
 
 315 
 
 8-4 
 
 Germany 
 
 105 
 
 160 
 
 212 
 
 315 
 
 331 
 
 70 
 
 Russia 
 
 32 
 
 46 
 
 100 
 
 121 
 
 114 
 
 1-3 
 
 Austria 
 
 29 
 
 51 
 
 83 
 
 128 
 
 137 
 
 3-5 
 
 Italy 
 
 26 
 
 46 
 
 74 
 
 96 
 
 99 
 
 3-4 
 
 Spain and Portugal 
 
 20 
 
 30 
 
 41 
 
 64 
 
 74 
 
 3-5 
 
 Holland 
 
 44 
 
 56 
 
 71 
 
 121 
 
 144 
 
 34-2 
 
 Belgium 
 
 35 
 
 48 
 
 64 
 
 116 
 
 116 
 
 20-3 
 
 Scandinavia 
 
 17 
 
 30 
 
 42 
 
 55 
 
 66 
 
 7-4 
 
 Europe 
 
 576 
 
 1,010 
 
 1,461 
 
 2,053 
 
 2,082 
 
 70 
 
 United States 
 
 64 
 
 137 
 
 172 
 
 309 
 
 276 
 
 4-9 
 
 South America 
 
 38 
 
 62 
 
 85 
 
 101 
 
 104 
 
 3-9 
 
 India 
 
 18 
 
 69 
 
 104 
 
 138 
 
 157 
 
 •8 
 
 For India 10 Rs. = ig 1.
 
 CCXXXl 
 
 (2) Table shouing the Income^ tJie Amount of Taxes paid and the pro- 
 portion of Taxes to Income in some of the European Countries 
 ['' MulhalVs History of Prices"). 
 
 
 Income, Millions Sterling. 
 
 Percent- 
 age of 
 Agricul- 
 tural to 
 
 Total 
 Income. 
 
 Taxes, 
 
 Millions 
 Sterling. 
 
 Ratio of 
 Taxes to 
 Income. 
 
 Agricul- 
 tural. 
 
 Non- 
 agricul- 
 tural. 
 
 Total. 
 
 United Kingdom 
 
 France 
 Eussia 
 
 Italy 
 
 Spain 
 
 Europe 
 
 India 
 
 £ 
 
 263 
 435 
 482 
 174 
 133 
 2,476 
 360 
 
 £ 
 
 984 
 530 
 366 
 171 
 85 
 3,102 
 180 
 
 £ i 
 
 1,247 1 21 
 965 44. 
 848 1 57 
 345 ! 52 
 218 60 
 
 5,578 44 
 540 67 : 
 
 £ 
 88 
 
 142 
 92 
 62 
 35 
 
 632 
 48 
 
 7-1 
 14-7 
 10-8 
 18-0 
 160 
 11-3 
 
 8-9 
 
 (3) 
 
 Table showing the Wages of the WorMng Classes and the National 
 Income in France (extracted from the article on " the wages of the 
 working' classes and the national income in France," •published in 
 the " Journal of the Royal Statistical Society for March 1891 "). 
 
 Average wages per diem. 
 
 Country districts 
 Provincial towns 
 Paris 
 
 Millions. 
 
 17-7 
 
 19-8 
 
 370 
 
 Millions. 
 
 3-4 
 
 3-8 
 
 1-1 
 
 2-0 
 
 Agricultural population 
 Non-agricultural population 
 
 Distribution of Incomes. 
 Working classes. 
 Agricultural labourers ... 
 Industrial and commercial workmen ... 
 Employes and other persons receiving wages 
 Domestics 
 
 Men. 
 
 Women. 
 
 s. d. 
 
 s. d. 
 
 2 1 
 
 1 4 
 
 2 10 
 
 1 5 
 
 4 6 
 
 2 2 
 
 
 Production 
 
 
 Million £ 
 
 
 ... 4('0 
 
 
 435 
 
 835 
 
 Million £. 
 80 
 
 144 
 40 
 56 
 
 10-3 
 3-7 
 
 320 
 
 1-7 
 
 1-0 
 l-O 
 
 17-7 
 
 Total wages and salaries 
 Small landowners, artizans, transport agents, 
 soldiers, sailors, minor functionaries, school- 
 masters, &c., whose resources do not exceed 
 the maximum wages of the ouvrier ... 160 
 
 Capitalists properly so called. 
 Landowners ... ... ... ... ...") 
 
 Manufacturers, merchants, &c. ... ... >420 
 
 Rentiers and members of the liberal professions J 
 
 Total 
 
 900 
 
 The capitalist classes get £112 per family after payment of the 
 services of domestics and of taxation.
 
 CCXXXll 
 
 (4) Table showing the Distribution of Incomes of Great Britain 
 and Ireland. (Mr. Giffen.) 
 
 — 
 
 Persons. 
 
 Incomes. 
 
 Millions. 
 
 Agricultvu-al. 
 Million £. 
 
 Non- agi-icultural . 
 Million £. 
 
 Total. 
 Million £. 
 
 I. — Great Britain. 
 
 Income-tax incomes ... 
 Upper and middle classes 
 
 below income-tax 
 Manual labourers 
 
 Total . . . 
 
 II. — Ireland. 
 
 Income-tax incomes 
 
 Upper and middle classes 
 
 below income-tax ... 
 Manual labourers 
 
 Total . . 
 
 Grand Total . . . 
 
 1-4 90 
 
 ]-5 23 
 11-6 70 
 
 486 
 
 84 
 445 
 
 576 
 
 107 
 515 
 
 14-5 i 183 
 
 1,015 
 
 1,198 
 
 0-1 10 
 
 0-3 7 
 1-6 , 20 
 
 16 
 
 4 
 15 
 
 26 
 
 11 
 35 
 
 20 i 37 
 
 35 
 
 72 
 
 16-5 ! 220 
 
 1,050 
 
 1,270 
 
 (5) Statement showing the Cost of living per inhabitant (extracted 
 from " Mulhall's Dictionary of Statistics "). 
 
 Daily Expenditure. 
 
 
 Pence per inhabitant. 
 
 Food. 
 
 Clothing. 
 
 Rent. 
 
 Taxes. 
 
 Sundi-ies. 
 
 Total. 
 
 United Kingdom .. 
 
 France 
 
 Germany ... 
 
 Russia 
 
 Austria 
 
 Italy 
 
 Spain 
 
 Belgium and Holland 
 
 Scandinavia 
 
 Europe 
 
 United States 
 
 9-0 
 7-0 
 6-5 
 4-1 
 5-8 
 4-2 
 4-6 
 6-7 
 60 
 6-0 
 7-0 
 
 2-6 
 2-2 
 1-8 
 1-0 
 1-6 
 10 
 1-2 
 21 
 1-6 
 1-6 
 3-1 
 
 2-2 1 2-4 
 1-8 ; 2-7 
 1-2 i 1-9 
 0-4 1 0-8 
 0-8 i 1-2 
 0-6 1-4 
 0-7 1-5 
 11 1-7 
 0-9 1-2 
 11 ! 16 
 1-8 ! 2-0 
 1 
 
 4-6 20-8 
 1-7 15-4 
 1-4 i 12-8 
 0-3 6-6 
 0-7 10-1 
 0-4 7-6 
 0-4 8-4 
 2-2 13-8 
 1-4 11-1 
 09 11-2 
 1-7 15-6 
 
 (6) Table showing the Gost of living of the English Labourer and 
 Mechanic per annum {" MnlhaU's Dictionary of Statistics "). 
 
 Items. 
 
 Labourer. Mechanic. 
 
 1792. 1823. 1883. 1792. 
 
 1823. 1883. 
 
 Bread, meat, Ac. 
 Groceries 
 Rent 
 Clothing, &c. 
 
 Total . . . 
 
 £ 
 16 
 2 
 2 
 7 
 
 £ 
 
 17 
 
 3 
 
 3 
 
 8 
 
 £ 
 20 
 5 
 4 
 8 
 
 £ £ 
 
 18 20 
 
 4 : 6 
 
 3 4 
 
 17 j 22 
 
 £ 
 
 22 
 
 8 
 
 6 
 
 24 
 
 27 
 
 31 
 
 37 42 j 52 
 
 60
 
 OOXXXlll 
 
 (7) Statement showing the relation between wages and food 
 (extracted from " MulhaU's Dictionary of Statistics''). 
 
 Shillings per week- 
 
 Wages. 
 
 Food. 
 
 Ratio of food 
 
 expenses to wages 
 
 earned. 
 
 Great Britain 
 
 France 
 
 Germany 
 
 Belgium 
 
 Italy 
 
 Spain 
 
 United States 
 
 Australia 
 
 31 
 
 14 
 
 21 
 
 12 
 
 16 
 
 10 
 
 20 
 
 12 
 
 15 
 
 9 
 
 16 
 
 10 
 
 48 
 
 16 
 
 40 
 
 11 
 
 PER CENT. 
 
 45 
 57 
 63 
 60 
 60 
 62 
 33 
 27 
 
 (8) Statement showing the scale of diet prescribed in Jails in the 
 Madras Presidency {Jail Code). 
 
 (a) — The daily diet scale for European and Bast Indian long-term 
 prisoners is as follows : — 
 
 Articles, 
 
 Labouring 
 prisoner.s. 
 
 Females and 
 non-labour- 
 ing male 
 prisoners. 
 
 Bread Oz. 
 
 Meat, uncooked ... ... ... ... ... ,, 
 
 Potatoes ... ,, 
 
 Vegetables ... ... ,, 
 
 Flour ... .- ... •■• ■•• ••• ■•• )j 
 
 Suet 
 
 Salt 
 
 Rolong or syce meal . . , ... „ 
 
 Dholl meal ... ■• ,> 
 
 Coffee Pint 
 
 Tea 
 
 Sugar Oz. 
 
 Onions ... ... ... ... ... ••• ■•• » 
 
 Pepper ... ,, 
 
 Mint and parsley ... ... 
 
 Rice Oz. 
 
 18 
 4^ 
 8 
 6 
 5 
 
 3 
 4 
 
 1 
 
 2 
 1 
 1 
 
 1 
 
 2h 
 
 1 
 
 I 
 
 lO 
 
 i 
 
 5 
 
 16 
 3 
 
 6 
 6 
 
 3 
 
 4 
 
 1 
 i 
 
 5 
 
 On Mondays, Wednesdays and Sundays, vegetables and dholl meal 
 are not given and rice is reduced to 4 oz. in the case of labouring 
 prisoners and increased to 6 oz. in the case of non-labouring 
 prisoners. On these days meat is increased to 7 oz. in the case of 
 the first and to 4 oz. in the case of the second. On Saturdays instead 
 of potatoes three additional ounces of rice are given, and ^ oz. of curry- 
 powder is substituted for mint, parsley and pepper. The allowance of 
 firewood is 2 lb. per diem. 
 
 G Q
 
 COXXXIV 
 
 (b) — The daily diet scale for Native Convicts is as follows 
 
 Labouring prisoners. 
 
 Grain- 
 
 r.f'^} I sifted flour or without 
 
 Cholum^ husk 24 
 
 Cumbu J 
 
 Dholl 2 
 
 Butter-milk, tyre ... ... 10 Three days a 
 
 week, not mut- 
 
 ton days. 
 
 Ghee or oil ... ... ... i 
 
 Tamarind ... ... ... i 
 
 Salt f 
 
 Curry-powder ... .. ... ^ 
 
 Vegetables ... ... ... 4 
 
 Onions ... ... ... ... ^ 
 
 Garlic ... ... ... ... 30 grains on mutton 
 
 days. 
 
 Mutton or fish ... ... ... 5 oz. without bone 
 
 or 2^ oz. of 
 salt fish three 
 days in the 
 week. 
 
 Firewood H lb. 
 
 BemarTis. — Females and non-labouring male prisoners get 20 oz. of 
 grain instead of 24 oz. and 4 oz. of mutton instead of 5 oz. Any of 
 the three grains may be used. 25 oz. of cumbu is to be considered as 
 equivalent to 24 oz. of ragi or cholum. Labouring prisoners are to 
 have two substantial meals, before going to work, and on returning 
 from it, with a third light meal at midday. No rice less than six 
 months' old is to be issued to prisoners. Dholl must be carefully 
 husked. The allowance of fresh vegetables may be increased on the 
 recommendation of the medical officer to any reasonable extent that 
 can be supplied by the Jail garden. The weight of vegetables must 
 be calculated after the stalks, skins and refuse have been separated, 
 and only good succulent vegetables are to be used. The allowance of 
 salt may, in times of epidemic cholera, be increased by order of the 
 medical officer. The allowance of meat must be estimated without 
 bone. Good ordinary grass-fed mutton or goats' flesh should be sup- 
 plied. When dried or salt-fish is used, 2^ oz. will be considered=5 
 oz. of fresh fish. Brahmins and other non meat-eating castes may be 
 allowed 1 oz. of ghee or oil or 2 oz. of dholl with 10 oz. of butter- 
 milk on meat days in lieu of mutton. In districts where cocoanuts 
 are plentiful, 2 oz. of copra may be given in lieu of | oz. of oil or 
 ghee. Mango pickles may be substituted for tamarind when procura- 
 ble- All kinds of grain used must be good, of thin kind and nutri- 
 tious, not too new nor too old, and the quantity should be a fair 
 average of the produce of the local markets. All unripe, mildewed or 
 weevil eaten grain must be rejected and the grain should be free from 
 9/11 external impurities,
 
 ccxxxv 
 
 (9) '^he particulars noted below have reference to the scale of diet in 
 use among the ryot-population in a village near Coimbatore. 
 
 The cost of food of Brahmin and other high castes per male adult 
 in villages may be taken to be Rs. 3-12-0 per mensem or 2 annas per 
 diem. Among labourers of the lower castes, the ordinary cost is 
 about Rs. 1-12-6, or 1 anna per head per diem. The particulars are 
 shown below : — 
 
 
 Higher castes. 
 
 
 Lowar castes 
 
 
 RS. A. p. 
 
 
 RS. A. P. 
 
 Bice ... ... ... 
 
 2 
 
 Cholum 
 
 10 
 
 Salt 
 
 16 
 
 Horse gram 
 
 10 
 
 DhoU 
 
 16 
 
 Salt 
 
 16 
 
 Chillies 
 
 6 
 
 Chillies 
 
 6 
 
 Tamarind 
 
 10 
 
 Onions 
 
 6 
 
 Black gram (powdered) 
 
 2 
 
 Sundries 
 
 10 
 
 Butter-milk 
 
 2 6 
 
 Kerosine-oil ... 
 
 16 
 
 Ghee 
 
 5 
 
 Gingelly-oil ... 
 
 2 
 
 Kerosine-oil for light... 
 
 2 6 
 
 Tamarind 
 
 6 
 
 Gingelly-oil 
 
 2 
 
 Betel leaves, areca nut 
 
 
 Firewood 
 
 8 
 
 and tobacco 
 
 4 
 
 Vegetables 
 
 10 
 
 
 
 
 
 Total ... 
 
 1 12 6 
 
 Total ... 
 
 3 11 6 
 
 
 
 Vegetables, firewood, &o., are seldom purchased. 
 
 (10) Scale of weeMy diet to Soldiers and Convicts {Mulhall). 
 
 ' 
 
 Ration. 
 
 Nitrogenous. 
 
 Carbon. 
 
 
 LB. 
 
 LB. 
 
 LB. 
 
 British soldiers in England 
 
 25-7 
 
 2-46 
 
 4-84 
 
 British soldiers in India 
 
 20-0 
 
 2-33 
 
 4-52 
 
 English convicts "^ 
 
 > in England 
 Farm labourers } 
 
 r 22-2 
 ( 221 
 
 1-38 
 1-82 
 
 4-99 
 5-11 
 
 The 25'7 lb., the allowance of British soldier in England, is made 
 up as follows : — 
 
 Bread 
 
 Cooked meat 
 Vegetables 
 Sugar 
 Sundries 
 
 LB. 
 
 7-0 
 3-5 
 7-0 
 0-7 
 7*5 
 
 Total 
 
 25-7
 
 cbxi^Vi 
 
 (11) Frankland's table of food required to lift a male adult {weigh' 
 ing 10 stones) 10,000 feet. 
 
 
 Quantity. 
 
 Cost. ] 
 
 
 Qii&ntity. 
 
 Cost 
 
 
 LB. 
 
 D. 
 
 
 LB. 
 
 D. 
 
 Milk ... 
 
 ... 8-02 
 
 15 
 
 Bread 
 
 ... 2-35 
 
 5 
 
 Apples ... 
 
 ... 7-82 
 
 12 
 
 Rice 
 
 ... 1-34 
 
 5 
 
 Fish 
 
 ... 6-37 
 
 25 
 
 Flour 
 
 ... 1-31 
 
 4 
 
 Potatoes 
 
 .. 5-07 
 
 4 
 
 Arrowroot ... 
 
 ... 1-29 
 
 15 
 
 Beef 
 
 ... 3-58 
 
 36 
 
 Oatmeal 
 
 ... 1-28 
 
 3 
 
 Ham 
 
 ... 3-00 
 
 38 
 
 Cheese 
 
 ... 1-15 
 
 12 
 
 (12) {Lyons' food tables). — The follotiing is the quantity of cereals and 
 pulses 7'equired by an adult weighing 110 lb. {the average iveight of 
 labourers in this country) for his nourishment. To cereals \ oz. of 
 fat or oil or ghee and not less tJian | oz. of salt should be added. 
 
 
 Hard labour 
 diet. 
 
 Light labour 
 diet. 
 
 Subsistence 
 scale. 
 
 
 (1) Rice 
 
 Pulses 
 
 (2) Cholnm 
 
 Pulses 
 
 (3) Cumbu 
 
 Pulses 
 
 (4) Ragi 
 
 Pulses 
 
 (5) Wheat 
 
 (6) Wheat 
 
 Rice 
 
 Pulses ... ... 
 
 oz. 
 16-61 
 711 
 
 oz, 
 14-77 
 5-97 
 
 oz. 
 14-91 
 3-78 
 
 23-72 
 
 20-74 
 
 18-69 
 
 17-85 
 
 5-87 
 
 15-86 
 
 4-88 
 
 1603 
 
 2-66 
 
 23-72 
 
 20-74 
 
 18-69 
 
 19-56 
 4-16 
 
 17-46 
 3-28 
 
 15-55 
 3-14 
 
 23-72 
 
 20-74 
 
 18-69 
 
 18-54 
 5-18 
 
 16-45 
 
 4-29 
 
 14-63 
 
 4-06 
 
 23-72 
 
 20-74 
 
 18-69 
 
 23-72 
 
 12-30 
 
 8-30 
 
 312 
 
 20-74 
 
 10-40 
 
 7-39 
 
 2-95 
 
 1869 
 
 10-93 
 
 7-46 
 
 0-30 
 
 23-72 
 
 20-74 
 
 18-69 
 
 The above tables are based on the nourishment required by a 
 labourer in England whose average weight is 150 lb. It is assumed 
 that the work done and the nourishment required vary directly as the 
 weight and no allowance is apparently made for the smaller quantity 
 of food required in hot climates. 
 
 In calculating the cost of food^ the value of rice may be taken to 
 be 30 lb., of the dry gi'ains 50 lb., of wheat 15 lb., and of dholl 25 lb., 
 per rupee.
 
 CCXXXVll 
 
 SECTION VI.— CEETAIN ALLEGED EVILS 
 
 IN THE PEESENT ECONOMIC POSITION AND REMEDIAL 
 
 MEASURES CONSIDERED. 
 
 (A). — Land Settlements. 
 
 (1) Remarhs on the method adopted hy the Settlement Department for 
 calculatimj the outturn of lands and its money value for fixing 
 the Government assessment on the lands. 
 
 In his " Memorandum on the Revision of Land Settlements in the 
 N.-W. Provinces^' by Mr. (now Sir) Auckland Colvin^ written in 1872 
 when he was Secretary to the Board of Revenue in those Provinces, 
 he has forcibly pointed out the impracticability of valuing lands for the 
 purpose of assessing the land tax by endeavouring to ascertain the net 
 produce of different qualities of soil. He remarks : — 
 
 " It is impossible to form an accurate conception of the process of 
 assessment in these Provinces until one very general, but very import- 
 ant, error is explained. Because, in theory, the Government which 
 we succeeded asserted a right to a share in the gross produce of the 
 land, it is very frequently assumed that a settlement should still rest 
 on a calculation of the gross produce, the cost of cultivation and the 
 net yield of every field. The land is represented to be a kind of tabula 
 rasa on which the settlement officer may frame any estimates he likes 
 of capabilities and outturn. Hence, we hear of the necessity of settle- 
 ment officers being experts in agricultural matters ; of the rise in reve- 
 nue bearing no ratio to the alleged rise in prices ; of the ruinous waste 
 of revenue involved in our settlements, and so on. It must be stated 
 here once for all, that with the gross produce of the land, as the basis 
 of assessment, the settlement officer in the North- West, except in 
 tracts where rents are paid in kind, has little or nothing to do.^' 
 
 The plan of finding out the net produce of each field was tried in 
 the N.-W. Provinces and was given up as impracticable. The follow- 
 ing extracts from the report of the Saharanpore Settlement officer 
 quoted in Sir Auckland Colvin's memorandum very clearly illustrate the 
 difficulty in ascertaining the gross and net produce of soils. 
 
 Saharanpore Settlement officer. — '' I have not made any use of the 
 facts brought out by the actual cutting and weighing of the crop in 
 1864-65, because, as will be seen by the average rates, the jumma 
 which would thus be gained would be the enormous sum of Rs. 
 16,96,824, the present jumma being Rs. 8,29,155 and my proposed 
 jumma (the utmost assessable in my opinion) Rs. 8,88,699. This fact 
 appears to me sufficient to show the fallaciousness of such data ; and I 
 proceed to show the reasons for their being so fallacious and do so 
 at some length, as my action in the matter has been questioned : — 
 
 " {a) Too small an area could be appraised by a European officer. 
 When so small a plot as one-tenth of an acre is taken as the measure 
 of the whole, an enormous number of fields must be appraised in order 
 that, by the rule of averages, the little errors in excess in one part may
 
 CCXXXVlll 
 
 be checked by the reverse kind of errors in another part. But it takes 
 about three hours to cut and weigh the crop of a field on the spot. 
 On an average this operation can only go on simultaneously in two 
 fields at a time. For the ' Khureef ' there are less than two and for 
 the ' Rubbee ' less than one month available for the purpose, that is, 
 some seventy-six working days ; i.e., no more than 152 different fields 
 can be appraised by the European Officer, even if he gives up two- 
 thirds of the time available for inspecting his villages ; and you must 
 recollect what pressure was put on me to finish this work speedily. 
 Bearing in mind that it is necessary to find out the average produce of 
 some dozen and-a-half different kinds of crop on eight different classes 
 of soil irrigated and.uuirrigated, it is easy to see what a small basis of 
 calculation can be obtained for each soil ; add to this, the fact that the 
 appraisement had to be made in 41 groups of villages by two officers 
 within the limit of one year, and that till the inspection was over it 
 could not be ascertained how these groups would be divided, and the 
 impossibility of procuring broad enough data for the calculation is 
 apparent 
 
 " [h) The native officials to whom part of the task was entrusted, 
 with the wish of avoiding the imputation of lowering the apparent 
 assets of a village, fell into the opposite extreme, and in spite of orders 
 to choose in each village, at least one good, one average and one 
 inferior field, rejected all the really bad fields. 
 
 " {d) The native officials taking the soils as given in the settlement 
 papers, in many cases put down as meesum that which had not been 
 manured for many years. 
 
 " (e) No allowance can be made for the numerous tuhm soJcht fields 
 where seed is annually sown on the mere chances of a favorable fall 
 of rain. 
 
 '^ (f) No allowances can with any certainty be made £or the little 
 unproductive places at the corners and edges of fields ; nor do I see 
 how to make accurate allowances for the charges of weighing and 
 carriage which fall on the Zemindars and the latter of which varies 
 with the distance from the bazaar. Nor can it be ascertained what 
 amount the Zemindar is forced by his necessities to sell at the low 
 harvest price and what portion he can reserve till the price rises. 
 
 " [g) The appraisement of the inferior xjrops— bajra, mote, oorud, 
 lobia, mundwa, &c., in the Khureef ; gram, mussoor, &c., in the Rubbee 
 — is particularly difficult. The produce has to be exposed for days to 
 the wind and sun before the grain can be separated. Who is to watch 
 during this time ? It was the Zemindar's (peasant proprietor's) interest 
 of course, to lower the apparent outturn, and I could feel no confi- 
 dence in the result of an operation which I had not witnessed 
 throughout with my own eyes ; yet this was in most cases incompatible 
 with the task of inspecting fresh villages every morning. The conse- 
 quence was the appraisement was far too much limited to the better 
 classes of crops, — cotton and mukkee for the Khureef, wheat and 
 barley for the Rubbee. This was the case in Mr. DanielFs pergunahs 
 as well ; but of course to make such an operation a true measure of the 
 actual outturn, the several crops must be cut in the same proportion 
 in which they are gi'own.
 
 ecxxxix 
 
 '' (A) I found that there was a decided difference in the weight of 
 a crop according as it was cut at the commencement or end of the 
 harvest. The grain was drier and lighter at the end than at the 
 beginning; consequently the outturn of crops cut at the commence- 
 ment of the season was unduly overstated. What allowance to make 
 on this account I know not ; yet a difference of a couple of seers in 
 the produce of one-tenth of an acre comes to a serious amount on the 
 whole " 
 
 In the Madras settlements the grain experiments were really very 
 few, considering the number of soils and of crops the outturn of which 
 had to be ascertained. To take the two districts in which the number 
 of experiments was the largest, viz., Nellore and Coimbatore. In 
 Nellore, the experiments were made during seven years. The number 
 was for jonna 2,771, for aruga 425 and for paddy 2,230, This amounts 
 to hardly one experiment for each sort of soil (and there are 66 of them) 
 in a year for each taluk which is oftentimes bigger than an English 
 county. In Coimbatore, 1,542 experiments were made as regards the 
 outturn of the three dry grains — cumbu, cholum and ragi — in five 
 taluks in two years. The number hardly amounts to one for each 
 grain for each sort of soil. 
 
 The cultivation expenses are even more difficult to ascertain. The 
 cost of cultivation varies with agricultural skill and efficiency of 
 labour in different localities and with the characteristics of different 
 castes of laborers in the same locality. In some of the Madras settle- 
 ' ments the cultivation expenses were not ascertained for each variety 
 of soil ; it was ascertained with more or less accuracy for one sort of 
 soil and increased or decreased in proportion to the assumed outturn in 
 the case of other soils. This was particularly the case in Kurnool and 
 the same method has been proposed to be adopted in the case of 
 Tanjore. In his " Analysis ^' of the agricultural statistics of the 
 Kurnool district, Mr. Benson points out the fallaciousness of this 
 method. He remarks that '' the system of calculating the working 
 expenses of the ryot by which these decrease in proportion to the 
 assessed value of the land is radically wrong,'^ and that " in fact, 
 within certain limits the expenses for the production of the standard 
 crop of jonna vary rather inversely to the quality of the land dealt 
 with.'^ 
 
 The quotations of prices of food grains for the old years on the aver- 
 age of which the commutation rates are based cannot also be relied 
 upon as accurate. These prices are given in terms of garce (a mea- 
 sure of capacity containing 3,200 Madras measures), and the Board 
 of Revenue found in 1885 that the local officers had committed many 
 mistakes in converting the quotations in terms of local measures into 
 quotations in terms of garce. The following are instances. In Ganjam 
 the local measures were converted to garce at the rate of 1,600 tooms 
 to a garce. The toom, however, is not a measure of uniform capacity 
 throughout the district, its contents in rice varying from 240 to 280 
 tolas at the several stations. The conversion is correct only as 
 regards those stations in which the toom of 240 tolas rice is in use. 
 In Cuddapah a garce was assumed to be equivalent to 3,200 local 
 measures of 132 tolas each or one-teAth more than its real contents. 
 In Kurnool the three varieties of local measures of 86, 114 and 132
 
 coxl 
 
 tolas, were converted into garce at the same rate, viz., 3,200 measures. 
 In South Arcot 3,200 local measures of 140f tolas rice were assumed 
 to be equivalent to a garce which is thus taken to be one-seventh 
 larger than it is. In Tanjore no uniform principle was adopted, the 
 conversion being effected at the rate of 116 kalams or 2,784 local 
 measures in some taluks and in others at the rate of 133^ kalams or 
 3,200 local measures. The contents in rice of the measures in use in 
 this district being either 133 or 144 tolas, the garce was assumed to 
 contain 10 and 20 per cent, more than it really does. The Board had 
 the prices in terms of garce for years subsequent to 1873 re-calculated 
 with reference to the retail prices recorded since that year, but as 
 regards the prices of the previous years on which the commutation 
 rates adopted for the settlements already concluded are based, it was 
 found impossible to apply any corrections to them. 
 
 These considerations are sufficient to show the almost insuperable 
 difficulties met with in effecting land valuations and the imperfect 
 character of the data which have to be made use of for the purpose.
 
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 (3) Extract from Mr. Gifen's article on '' Taxes on Land/ printed 
 
 in his '^ Essays on Finance," 1st Series. 
 
 " Clearly, if the phenomena of the last thirty years are about to be 
 repeated — and there is a reasonable chance that they will be, for there 
 is no sign of check to the growth of population or the increase of 
 machinery and inventions — it is much to be wished that a better 
 system should, if possible, be at work than has hitherto existed, for 
 securing to the nation a portion of the augmenting value of its soil. 
 The problem, however, is excessively difficult, and I doubt very much 
 whether Mr. Mill's own suggestion, which must be first considered, 
 will be found, as a general measure, to answer the purpose. It is in 
 effect a proposal to go straight to the end in view — that the State 
 should inquire at prescribed intervals what is the augmenting rental of 
 land, and make a charge upon the owners of some definite portion of 
 that augmentation. If there is no increase of rental due to general 
 causes, there will be no increase of tax, and owners who object will 
 have the opportunity of surrendering their estate on what Mr. Mill's 
 enemies must admit will be full compensation. One objection to this 
 proposal is that it is almost wholly novel in European countries, at 
 least where the art of taxation has been most carefully studied, and is 
 least of all fitted for a country in the circumstances of England. Mr, 
 Mill has apparently in view the ideal of the Fonder taxes on the conti- 
 nent, in which the process is for the State at a certain date to impose 
 a lump charge on the whole land of the country in proportion to its 
 estimated value, and then apportion this charge among the various 
 localities and parts of soil in the country, by a carefully arranged 
 Cadastre. But there is nothing more tedious in fact than the comple- 
 tion of a Cadastre, or unequal when it is completed. Even in France, 
 which has set the example in these Fonder taxes, the new Cadastre, 
 which was commenced forty years ago, was only completed the other 
 day, and while it was being put into operation the value of the whole 
 land subject to it was changing. It is hardly possible to imagine that 
 even if in England we could give that attention to the nice adjust- 
 ment of competing qualities of land or property, which could alone 
 make the basis of French direct taxes endurable, we should be content 
 to await the slow development of a pretentiously perfect, but really 
 imperfect, Cadastre for a period of 40 years. It is a still more fatal 
 objection that such taxes do not appear to draw. It is officially 
 estimated in France that the annual value of real property has increased 
 since 1821 from £64,000,000 to £160,000,000, which is quite com- 
 parable with the increase in England. But while the rates have 
 risen in England from about £10,000,000 to £17,000,000, the special 
 land tax of France has only risen from £11,720,000 to £12,280,000, 
 including the additional hundredths imposed for local purposes, as 
 well as the ' principal ' of the tax. The special tax of England is 
 thus more elastic and effective than the special tax of France, which 
 is proposed as a model. Besides, if these objections could be got over, 
 if it could be shown that an improved Cadastre is easily possible, 
 and is capable of frequent renewal, there would remain the objection 
 that such a tax, so imposed, might interfere with the enjoyment of 
 private pi'opei'ty in an inexpedient manner. It would bo very difficult 
 to re-assure individuals against the operations of the tax assessors.
 
 ccxliii 
 
 Every ftJw years they would foresee a demand of an indefinite amount, 
 depending on many points of taste and opinion, and they would only 
 have the alternative of paying or surrendering their property to the 
 State. Careful as Mr. Mill is to suggest safe-guards, the essential 
 nature of the transaction would be such as to destroy confidence in the 
 continuity of private right in some particular plot of land. The 
 apprehensions might in the main be unfounded, but their existence 
 would be a public calamity, unless the theory is admitted that the 
 abolition of private property would be beneficial, which in some 
 localities it might be. 
 
 '' Turning from this suggestion, I think there is much to be said 
 in favor of our present special taxes on land, imperfect as we have 
 shown them to be. They have permitted the growth of an immense 
 mass of value in the hands of individuals only, and at a very recent 
 date there was a sudden reduction of the burden, by which a small class 
 received a considerable gain. But with all their imperfections, they 
 have the merit of elasticity. They are set apart for the discharge of 
 certain branches of expenditure ; and, without fl.uctuating so widely as 
 to disturb property rights, they may be increased matei'ially, and so 
 reserve for the State some portion, however insignificant it may be, of 
 the augmenting value of property. This is no small merit, especially 
 when compared with the model of the continental land taxes, which 
 have no such capacity of expansion. It is an additional convenience, 
 that, as the branches of expenditure which are thrown specially on this 
 property are local, local administration and local taxation can be asso- 
 ciated. In this view, the rates are, in fact, a happy English invention, 
 by which different and unconnected advantages are obtained in a rough 
 practical fashion, and as it is a familiar system we have another obvi- 
 ous reason for trying to make the most of it. Could not something 
 more be made of it ? It will be of some use perhaps if the discussion 
 of the principles on which the burden is imposed makes it clear that 
 no injustice is now committed — that the support of a cei'tain burden 
 of expenditure is a condition of the enjoyment of the property which 
 the State may properly impose. Every one knows the condition 
 beforehand, and as it is quite a calculable one, notwithstanding the 
 loud talk of the increase of rates and the addition of new rates, there 
 is no inexpediency in it as a too heavy restriction on the enjoyment of 
 private property in land. But the discussion, I think, may do more, 
 and justify the imposition of new charges which are convenient for 
 local administration. As the tendency of the functions of local 
 Government is to increase, and the additional expense has not yet 
 proved commensurate with the increase of the value of property, we 
 have a security in the recognition of this principle, both for the 
 reservation to the State of a part of that value — though, I fear, a 
 most inadequate part — and for the safety of private property against 
 any great disturbance. If I might venture to make a suggestion, 
 there is one new charge which escapes notice, and which might very 
 properly be treated as a branch of local expenditure ; the army for 
 home defence ought to be locally maintained. For many reasons it is 
 important that a good deal of local management and self-government 
 should be associated with the organization of our militia and volun- 
 teers and the charges might very properly fall on the rates. This
 
 ocxliv 
 
 would not only relieve the Imperial army estimates of a lieterdgeneous 
 charge, but by really associating localities with the work, would contri- 
 bute much to the strength and vitality of our home system of defence. 
 There is another way in which something more could be made cf the 
 present system. Under the hap-hazard methods and want of principle 
 which have hitherto prevailed, the local rates have gradually been 
 relieved of a large portion of the burden which properly falls upon 
 them. On one pretext or another the Imperial exchequer has been 
 drawn on for ' grants' amounting annually in England to a million and 
 a quarter, by which the growth of the local burden has been retarded 
 — or in other words, the individual landowner has been permitted to 
 retain a larger share than otherwise he would retain of the augmenting 
 value of land. Good reasons, I think, have been furnished for putting 
 a stop to this system, if rates continue to be the form of our special 
 tax. The proper course would now be to institute a mode of discon- 
 tinuing the grants by degrees, according to a defined scale, and so 
 reimpose on property a burden which it has escaped/' * 
 
 (4) Statistics showing the amount of taxes on land in various countries 
 and its ratio to total agricultural production (extracted from 
 " MulhaU's Statistical Dictionary ") . 
 
 r, . ■ m Agricultural 
 '^'o^^*"^^- I T^^^^- production. 
 
 Tax 
 percentage. 
 
 England 
 Scotland 
 Ireland ... 
 
 United Kingdom 
 France ... 
 Germany 
 Austria Proper 
 
 Italy 
 
 Belgium 
 
 Holland 
 
 Egypt 
 
 India 
 
 Millions £. 
 16-2 
 1-9 
 
 2-7 
 
 Millions £. 
 157 
 40 
 54 
 
 10-3 
 
 4-8 
 5-0 
 
 20-8 
 21-8 
 12-7 
 8-6 
 14-2 
 1-53 
 1-08 
 4-89 
 23-4 
 
 251 
 
 460 
 
 424 
 
 175 
 
 204 
 
 55 
 
 39 
 
 35 
 
 400 
 
 8-3 
 
 4-8 
 3-0 
 4-9 
 70 
 2-8 
 2-8 
 14-0 
 5-8 
 
 109-0 
 
 2,043 
 
 5-4 
 
 In the United Kingdom the taxes on agriculture are distributed as 
 follows : — 
 
 Taxes. 
 
 England. Scotland., 
 
 Ireland. Total. 
 
 Tithes 
 
 Rates 
 
 Income-tax 
 
 Land-tax 
 
 Duties and stamps 
 
 Millions £. 
 4-05 
 8-30 
 1-20 
 1-05 
 1-60 
 
 Millions £. j Millions £. 
 
 i-40 2-10 
 •20 -25 
 ■05 
 •25 -35 
 
 Millions £. 
 4^05 
 11-80 
 1-65 
 110 
 2-20 
 
 16-20 
 
 1-90 2^70 
 
 1 
 
 20-80 
 
 * Note. — It should be remembered that Mr. Giffen's remarks in the concluding portion 
 of the above extract were made in 1871, before the present agricultural depression and 
 the great fall in the reut-value of lands had set in, in England.
 
 ccxlv 
 In Finance the taxes levied in 1874 were distributed as follows : — 
 
 Millions £. 
 
 National 4-8 
 
 Departmental ... ... ... ... ... ... 4'8 
 
 Indirect ... ... ... ... ... ... 8'6 
 
 Roads, &c. ... ... ... ... ... ... 3'6 
 
 21-8 
 
 The rental of land in France was estimated in 1874 at 158 millions £. 
 
 (B). — Tenure of Ryots in Zemindabies. 
 
 (1) Extracts from the remarks of the Madras Board of Boyvemte 
 on the relative rights of Zemindars and. Tenants. 
 
 In Proceedings^ dated 2nd December 1864, No. 7843, tlie Board 
 reviewed the history of the relative rights of Zemindars and ryots 
 and arrived at the following conclusions, viz. : — 
 
 " That in the earliest times of which we have record, the right of 
 the State to a share in the produce of the land was limited, and that 
 this limit was such as to leave a sufficient margin for the growth of 
 a valuable property in the land appertaining to the occupant, whose 
 right to retain possession on payment of the limited share was in- 
 violable and hereditary ; 
 
 '' That a fixed limit was equally maintained by the Muhammedan 
 conquerors ; 
 
 " That the origin of the Zemiudar^s office was comparatively a 
 modern one, and that whatever its origin, the Zemindars derived their 
 rights from the State, which could not confer more than it had 
 possessed and exercised ; 
 
 ^' That the State asserted, and often in later times exercised, the 
 power of resuming the exercise of its rights from the Zemindars 
 without thereby altering the terms and conditions of the ryot's 
 tenure ; 
 
 " That any increase in the rate of the Zemindar's demand on the 
 ryots was only justified by the Zemindar on the plea that the State 
 had raised its demands on him, although this ground was by no 
 means a sufficient foundation for any increase in the rate ; inasmuch 
 as the State share collected by the Zemindar could be legally increased 
 by extension of cultivation, and its value enhanced by improve- 
 ments in the cultivation, and when the superior kind of crops were 
 grown, and as the State demand on the Zemindar was not fixed, 
 though his percentage of the State share of the produce might have 
 been so ; 
 
 '' That the notorious prevalence of excessive receipts by the 
 Zemindars from the ryots induced the Nazims of the Empire to 
 raise the State demands on the Zemindars, which measure again 
 excited the Zemindars still further to exact from the ryots, till the 
 latter were ground down to penury, or exasperated to resistance. 
 Heuce the Zemindars were themselves impoverished, so long as, and 
 where the officers of the Empire were able to maintain their authority
 
 ccxlvi 
 
 over them ; or they fattened on extortion where the influenue and 
 authority of the Empire or its lieutenants had grown weak. In 
 neither case was the State benefited ; 
 
 " That the object steadily kept in view by the framers of the Per- 
 manent Settlement was to remedy these crying evils by re-adjusting 
 matters ; in order to which they proposed to relinquish to the Zemin- 
 dars an ample allowance for their personal benefit, out of the average 
 State demand in past years on the Zemindari, and to fix the Zemin- 
 dar^s payment unalterably for ever, leaving to him all the benefits 
 derivable from extension of cultivation and improvements in the 
 culture of the lands, but to restrict his demands on the ryot to the 
 rate or share established for Government by prescription, which rate 
 was to be registered in the village by ofiicers appointed for the pur- 
 pose ; while the actual demand on the individual ryot was to be 
 recorded in a puttah or written engagement in accordance with this 
 established rate or share, which puttahs when granted not ' without 
 limit of time ' but ' for one year/ should be renewable at its close, 
 or be in force till renewed ; 
 
 " That a limited time (six months) was allowed to each Zemindar 
 after the Permanent Settlement of the State demand on his Zemindari, 
 for the necessary arrangements with the ryots, after which time he 
 became liable to fine if he failed to grant puttahs to ryots on demand ; 
 
 " That when disputes arose regarding the rates to be specified in 
 those puttahs, whether of assessment in specific quantities of grain or 
 sums of money for a specified extent of land, or of shares in the 
 produce^ they were to be determined with reference to the rates in 
 force in the particular case in the year jpreceding the Permanent 
 Settlement of the State demand, or where that was not ascertainable, 
 then according to the rates in force in the case of neighbouring land 
 of similar quality ; 
 
 " That no ryot can be ejected from his holding, so long as he 
 pays, or is willing to pay, this established rate ; 
 
 '^ That the Collector has summary powers to give decisions in 
 such cases in a q^uasi judicial capacity, and may refer them for the 
 decision of Punchayet when the parties agree ; 
 
 '' That appeals lie by regular suit to the Courts from the Collector's 
 decisions, but that the Punchayet^s decision is final where unimpeach- 
 able on the ground of corruption." 
 
 (2) Note on Judicial decisions affecting the rights of Zemindari Ryots. 
 
 It is noteworthy that the decisions of the Madras High Court 
 which really jeopardized the status of Zemindari ryots were not passed 
 with reference to Zemindari ryots, but with reference to Government 
 ryots. The decisions in Chockalinga Pillai versus Vythilinga Pandara 
 Sannadi and Mrs. Jessie Foulkes versus Eajarathna Mudely (YI 
 Madras High Court Reports, pages 164, &c., and 175, &c.) are sup- 
 posed to have rendered the tenure of Zemindari ryots precarious. 
 In the fifst case, the tenant on whose behalf occupancy right was 
 claimed was a porakudi and the landlord was a Government ryot 
 entitled to kudivaram and not melvaram. In the second case, the so- 
 called puttadar was the lessee of the melvaram rights of a mittadar.
 
 ccxlvii 
 
 In neither case, therefore, was there a presumption in favor of perma- 
 nent occupancy right according to the common law of the country. 
 This has been laid down in subsequent decisions of the Madras High 
 Court. In the case reported in Indian Law Reports, V Madras, page 
 345, the High Court observe : " It has never been the law in any part 
 of India, of which we. have experience, that a mere farmer of revenue 
 or proprietary right acquires a right of occupancy." Both in this 
 case aud in the case reported in Indian Law Reports, VII Madras, 
 page 374, the High Court further hold that iirimd facie porakudis 
 are tenants from year to year, and that a claim on the part of pora- 
 kudis to hold land permanently should be proved to have originated 
 either in grant or prescription. The case in which the permanent 
 occupancy right of ryots was called in question was Fakir Maham- 
 med versus Tirumala Chariar (Indian Law Reports, I Madras, page 
 205) decided by a Full Bench composed of Sir Walter Morgan, Chief 
 Justice and Messrs. Holloway and Innes, Judges, Mr. Innes dis- 
 senting. The decision was that an ordinary puttadar under Govern- 
 ment is merely a tenant from year to yeai', and that the rules of the 
 Board of Revenue asserting the contrary did not constitute rights 
 enforceable at law. Mr. Innes pointed out the true state of the case, 
 viz., that the ryot does not dei'ive his title from the puttah, but from 
 occupation of the land and registry of his name in the registers of 
 landed property kept under Regulation 26 of 1802 ; that puttah is not 
 a lease but merely a memorandum showing the revenue payable for 
 each year on the holding with reference to changes in the extent of 
 land newly taken up or relinquished, and remissions of revenue 
 granted on account of loss of crop, &c. ; and that by the common law 
 of the country, a ryot holding land under this tenure is entitled to 
 hold it as long as he pays the regulated assessment, or is evicted in 
 due course of law for default. In a subsequent case reported in 
 Indian Law Reports, IV Madras, page 174, decided by Messrs. Muthu- 
 sami Aiyar and Tarrant, it was ruled that it was incumbent on the 
 Mittadar to show that the kudivaram right as well as the melvaram 
 right vested in him, so as to entitle him to eject the ryots in the 
 mittah on notice, as tenants from year to year, and that there was 
 nothing to show that the Mittadar was the proprietor in the sense 
 that the kudivaram right belonged to him. Again in Subraya Mudeli 
 versus Sub-Collector of Chingleput (Indian Law Reports, IV Madras, 
 page 303), Sir Chai-les Turner observed that a puttah issued by 
 Grovernment will, unless it is otherwise stipulated, be construed to 
 endure so long as the ryot pays the revenue he has engaged to pay. 
 Mr. Innes laid down that the right of Government is only a right to a 
 charge on the land, and a right to forfeit, by due course of law, the 
 title of the person who does not pay the charge. In the Secretary of 
 State versus Nunja (Indian Law Reports, V Madras, page 163) decided 
 by Sir Charles Turner and Mr. Muthusami Aiyar, they stated " we 
 see strong reason to doubt whether the view of the majority of the 
 Court in that case (Fakir Mahammed versus Timmala Chariar) was 
 right and when an occasion arises, we should propose that the ruling be 
 reconsidered by the Full Bench." It is difficult to say whether the 
 principle involved in the dictum of Sir Charles Turner that a puttah 
 issued by Government, unless otherwise stipulated, will be construed 
 to endure so long as the ryot pays the revenue he has engaged to pay
 
 V 
 
 coxlviii 
 
 will be applied to Zemindari ryots. In Venkatagopal versils Ran- 
 gappa (Indian Law Reports, VII Madras, page 365) decided by a Full 
 Bencli, the Madras Higb Court review the legislation in regard to 
 landlords and tenants, but do not afford any indication of what their 
 decision would be on the above point. The High Court in their 
 judgment state that the permanent settlement regulations of 1802 had 
 placed the rights of Zemindari ryots on an assured basis, and Regula- 
 tions IV and V of 1822 jeopardized these rights. The statement 
 seems to reverse the facts. The intention of the Regulations of 1822 
 undoubtedly was to prevent any doubt being cast upon the rights of 
 the ryots by the provision in the permanent settlement regulations 
 which declared Zemindars to be " proprietors of the soil.^^ Further 
 in this case, the High Coui^t presumed an '^ implied contract " for the 
 payment of a money-rent for the simple reason that the ryot had paid 
 a money-rent at a certain rate for 14 years, though he objected to the 
 payment of the money-rent as being excessive, and stated that he was 
 prepared to divide the crop with the mittadar at the usual rates of 
 varam. This he was entitled to do under clause 3 of section 11 of 
 Act VIII of 1865. If the money-rent I'epresented the money value of 
 the mittadar^s share of the crop at certain assumed rates, the clause 
 gives the option to the ryot of rendering the rent at the rates 
 demanded or of falling back upon a division of the crop when the 
 parties could not agree to its future money valuation. The fact that 
 for 14 years it suited the ryot to pay the money rates demanded, 
 owing to the prices of produce then prevailing, would not show that 
 he impliedly contracted to pay at the same rates when prices had 
 fallen and were expected to fall further. In Polu versus Ragavammal 
 (Indian Law Reports, XIV Madras, page 52) the High Court followed 
 the ruling in Venkatagopal versus Rangappa, but in this instance it 
 was the landlord and not the tenant that claimed payment of rent in 
 kind. 
 
 (3) Extract froon the Re'fjort of Mr. Forbes on the condition of the 
 Zemindari Ryots in the Ganjam district. 
 
 Mr. Forbes writing in 1866 as Collector of Ganjam says, ''I will 
 now add a few words on the comparative merits of the ryotwari and 
 Zemindari tenures as regards the condition of the tenants. In Ganjam, 
 the assessment on ryotwari lands held under Government is light, 
 and a series of years of very remunerative prices had enabled the 
 ryots to accumulate substance ; they had begun, prior to the famine, 
 to achieve an independence before unknown to the class and to 
 hold their own with the sowcar, in bargains for produce ; had it 
 not been for this circumstance, we should have had to choose between 
 agricultural depopulation and the alternative of maintaining the 
 whole class, as we have already maintained more than 20,000 souls. 
 
 ''The Government ryot in Ganjam pays a light rent, and his 
 interests are cared for by the preservation of the existing sources of 
 irrigation. 
 
 '' The 13 Oorya Zemindars of Ganjam are, with few exceptions, the 
 most grasping landholders and the least enlightened proprietors in 
 the world ; they take 50 per (;ent. of the crops and lay out little or 
 nothing in improving or even in maintaining irrigation works. They
 
 ooxhx 
 
 rack-rebt their villages to middle-men, and the under-tenants are con- 
 sequently deprived of all chance of accumulating capital, and are 
 little better than serfs of the soil ; the bulk of the ryots in Zemindari 
 estates would hail a change to Government management with joy. I 
 limit these remarks to the Zemindari system as it is worked here. 
 There may be liberal native landlords in other districts, whose policy 
 produces different results ; but in the Ganjam Zemindaries, the profits 
 of the soil are divided between the ryot, the Zemindar, the renter and 
 the Government. In the Government taluks, the ryot and the Govern- 
 ment divide the produce, the ryot taking by far the larger share. There 
 can be no question which class lives under the more favorable con- 
 ditions, and in fact, when the famine fell upon Zemindari estates, the 
 misery and mortality were far greater than in Government taluks." 
 
 (4) Extract from the Report of Mr. Cotton on the condition of the Ryots 
 in the Kalahasti Zemindari, in the North Arcot district, quoted 
 by Mr. W. Dighy in his Memorandum on private relief in the 
 Madras Famine 1877, p. 129, Appendix I, to the Report of the 
 Famine Commission. 
 
 " The Maderpauk division is the southern portion of Kalahasti 
 Zemindari of the North Arcot district. The division contains 178 
 villages, not including hamlets ; the population of which in 1871 
 amounted to 73,085 ; half to two-thirds of these are ryots, or people 
 who earn their livelihood by agricultural pursuits. The greater 
 number of the ryots, of whom the population chiefly consists, are 
 always exceedingly poor, much more so, than in villages belonging to 
 Government, for the following reasons : — The ryot who ploughs and 
 cultivates the land has no real right of occupancy, and hence has no 
 interest in improving his land by sinking wells and manuring it. The 
 effects of this system can be seen at once by comparing the Inam vil- 
 lages of the Zemindari, with those directly under the Zemindar's 
 control. In the fields of the former there are wells, the land is manured, 
 and the owner consequently gets good crops and is generally well to 
 do, living in a good substantial house. In the fields of the latter, there 
 are no wells ; and the fields having no fixed occupants are not manured, 
 and give but a poor return to the labour expended on their cultivation ; 
 the villages [sic in origine) attached to the lands bear invariably a 
 poverty-stricken look. 
 
 '' The Zemindar, Venkatappa Naidu, O.S.I., collects his revenue, 
 not in money, as is done in Government villages, but in kind. The 
 Zemindar is supposed to receive one-half of the outturn of the crop 
 and the cultivator is supposed to receive the other ; but he rarely gets 
 more than a quarter, the other quarter generally going to the subordi- 
 nate Zemindari officials. What remains to the cultivator, after paying 
 everything, is hardly sufficient to keep him and his family in food till 
 the next harvest ; so that, it is a case of living from hand to mouth. 
 If the crops fail for one year for want of water or other causes, most of 
 the cultivators are left absolutely destitute ; and not only the culti- 
 vators and their families, but also the coolies, who, though not actually 
 cultivating themselves, earn their livelihood by working for those that 
 do. The cultivator, when his crops fail, has to use the seed, that he 
 had put by for sowing, as food ; when this is exhausted, he sells his 
 
 1 1
 
 ool 
 
 bullocks, &c., and having spent the money received from these, he is 
 without any resources. He is unable to raise money on his fields from 
 the sowcar, as he has no rights of occupancy ; therefore his last hope 
 is to get an advance from the Zemindar ; failing this, he leaves his 
 village and seeks work as a cooly elsewhere. This is what happened 
 last year. In November we had excellent rain^, but owing to the 
 exhaustion of the cultivators, the fields remained uuploughed- The 
 Zemindar gave no advances, or to such a small extent that they were 
 useless. Many ryots had already left their villages, and others were 
 preparing to do so ; roofless houses were seen in all directions and 
 some small villages were entirely deserted." 
 
 (5) JBxtraci from the Administration Beport of the Puduhota State j or 
 188L-82 hy the Dewan-Regent Mr. A, Sashiah Shastriar, G.8.I., 
 describing the evils of the system of collecting the Government 
 assessment on land in hind hy a division of the crops raided. 
 
 *' I have already remarked that the prevailing revenue system 
 was the ' amani/ A very large portion of the lands under cultivation 
 and believed to be of the best kind were held under this system. The 
 property in these lands icas vested in the sirkar. The ryots were in 
 most cases tenants-at-will and theoretically could be turned out with- 
 out their consent. The transfer or sale of such lands was void at law. 
 The crop raised by the ryot (at his own expense generally, and at 
 times assisted with seed-grain from sirkar) was shai'ed half and half * 
 between him and the sirkar. He moved his share to his own house 
 and carried the sirkar share to the granaries provided for the purpose, 
 and if there were none, kept it in his own house either in trust, or 
 under the lock and key of the responsible sirkar village officers. 
 These were the main features of the system, and to one who knows 
 no more, they must appear on their face to be very just indeed. 
 What could be moi'e fair ? The ryot and the sirkar, by sharing* the 
 crop equally, share equally the vicissitudes of season and market. 
 
 2. " During a life-long career of service, I have had opportunities 
 of watching closely the evils of the sharing system in all its varied 
 forms in many districts of the Madras Presidency, as well as in 
 Travancore, and my experiences have been of an interestingly sad 
 kind. To tell the whole tale would occupy more space than would 
 be justifiable in this place. I shall, therefore, content myself with 
 stating briefly what is the case in this State. 
 
 3. '^The system is saturated with evils and frauds of a grave 
 nature. 
 
 (a) "■ The ryots having no heritable or transferable property never 
 cared to cultivate the amani lands in due season. If you saw a bit of 
 cultivation at the tail-end of the season, the chances are it is ' amani.' 
 Ryots prefer infinitely to cultivate other lands held on different 
 tenures, such as inam, jeevithem and mouey assessed lands. To 
 prevent this, a penal agreement is forced from them to the efl^ect that 
 they would not faif to cultivate the 'amani' lands first. 
 
 * This is the prevailing proportion, but it varied in special cases, sometimes two- 
 fifth and sometimes half and so on,
 
 coll 
 
 (h) /' As soon as the ears of the grain make their appearance, an 
 army of watchers called kanganies (literally eye- watchers) is let loose. 
 As they get no pay for the duty and are for the most part the/)ld 
 militia of the country, on whom this kind of work is imposed since 
 fighting time had departed, and get a grain fee on the crop they 
 watch, their watch is at best often lax. 
 
 (c) " When the crop arrives towards maturity, it is the turn of 
 sirkar village officers and the village headmen (called mirasidars here) 
 to go round the fields and note down estimates of the crop. That 
 there is considerable wooing and feeing at this stage goes for the 
 saying. As in other matters, so in this, the race is to the rich and 
 woe to the poor. 
 
 (d) " As soon as the village officers have done and reported the 
 first estimate, down come special estimators from the taluk cutcherries 
 to check the first estimate. Their demands have equally to be 
 satisfied. Then comes the business of obtaining permission to cut 
 and stack the crops. Here again another stage, where much feeing 
 and grudge-paying take place. If permission is delayed just two 
 days, an adverse shower of rain irreparably damages the crop on the 
 field, or over-exposure to the sun renders the grain unmarketable. 
 
 (e) ''Then comes the threshing and division of the grain on the 
 threshing-floor. What takes place then may be imagined. If the 
 outturn is less than the estimate, the ryot is made responsible for 
 the difference without any further ado. If it is more, woe be to the 
 estimators. The result in the latter case is often that the difierence 
 is made away with and shared half and half between the ryot and the 
 officers concerned. During all this time the unpaid army of the 
 watchers continues on duty. 
 
 (/) " Now the sirkar grain is removed to the granaries. Is all 
 danger over now ? By no means. A fresh series of frauds com- 
 mences. The granaries have neither impregnable walls, nor are their 
 locks Chubb's patents. The half-famished vettiyan, the hereditary 
 watchman of the village, mounts guard, and he and the village head- 
 men are personally held responsible for any deficiency which may 
 occur on the re-measurement of the grain out of the granary. It 
 often happens the poor vettiyan, stung by hunger, is driven to certain 
 deeds much against his conscience. Scaling over the mud walls or 
 forcing open the too easily yielding village locks, he helps himself from 
 time to time to what his urgent wants may dictate. It is not often he 
 is able to replace, even if he was so minded, what he has appropriated 
 before the day of reckoning comes. This comes sometimes soon and 
 sometimes late, depending on the time when the paddy is required for 
 sirkar purpose, or for sale to purchasers. When it does come, there 
 is crimination and recrimination without end, the vettiyan charging 
 the mirasidars, and the mirasidars the vettiyan. The sirkar officials, 
 to vindicate its robbed rights, come down heavily on both, and often 
 both are ruined. If the misappropriation is made in very small 
 quantities, the way of replacement is very ingenious ; a quantity of 
 chali" or a quantity of loose earth or a quantity of big-grained sand is 
 put in to make up the measure. 
 
 ig) " Time passes and the months denoting favorable markets 
 come round. There now remains the business of disposing of thg
 
 bolii 
 
 sirkar grain from tlie granaries. Simple as it may appear, enormous 
 difficulty is experienced, and we have to face another series of frauds 
 now on the part of the taluk or superior officers. Tenders are invited, 
 but only a few come and bid low. Tenders are again invited but to 
 no better purpose. At last come upon the scene a set of unscrupulous 
 fraudulent tradesmen or relatives or friends of those in authority, or 
 mere speculators professing to give security, which is really worthless. 
 These men bid higher prices and take up the grain in lots they 
 require. They remove the grain, but make no payment down, but 
 enter into promises to pay value in eight instalments and profess to 
 give due security for the fulfilment of the promise. It not unfre- 
 quently happens that the purchaser decamps and his surety is found 
 to have followed suit or found to be hollow. The money due on the 
 sales to the relatives and friends of the officers outstands the longest. 
 If, to avoid these troubles, the grain is taken direct to the nearest 
 market to be there sold outright for cash, few could be induced to 
 pay the market price, the sirkar grain being notoriously bad crop and 
 unscrupulously adulterated. 
 
 '' Such is a brief resume of the beauties of the ^ amani ' system. 
 Complaints against the system on the part of the poorer ryots were 
 rife. The State was ringing with the news of the plunder practised 
 every day. Honest-minded higher officers found themselves helpless 
 to apply a remedy. The evils in all their realities came home to me. 
 To knock the system on the head was the only remedy possible, and 
 to this I had to apply myself as soon as I had ascertained the wishes 
 of the people and had the leisure to begin. A beginning was made to 
 substitute money assessments. It met with success and would have 
 been carried through but for the unfortunate character of the season 
 which deterred the ryots from entering into immediate arrangements. 
 The plan adopted will be described in the next report.'^ 
 
 (6) Suggestions as to amendments to he made in the law of landlord 
 
 and tenant in the Madras Presidency . 
 
 The following are the matters for which provision should be made 
 in a law regulating the relations between Zemindars and ryots. The 
 two main interests in the land are the melvaram and the kudivaram ; 
 and the two classes of land are " ryoti " or aiyan or peasant land, and 
 pannai or kamar or private or domain land. In the former, the 
 Zemindar has the melvaram right alone, and in the latter, he has both 
 the melvaram and the kudivaram right. The distinction is well known 
 throughout the Presidency, and is recognized by the common law of 
 the country. Advantage should be taken of the distinction, and the 
 relative rights of landlords and tenants should be defined on this 
 basis. There would then be 4 classes of persons to be dealt with, 
 viz., Ist, melvaramdar or the superior holder next after Government; 
 2nd, tenure holders or persons who have interests carved out of the 
 melvaram; 3rd, the ryot proper or the possessor of the kudivaram 
 right ; and 4th, sub-ryots or persons holding under ryots interests 
 carved out of the kudivaram. The second and fourth classes do not 
 require any specific protection, and their rights may be left to be 
 defined by contracts and the operation of the general law of prescrip-
 
 coliii 
 
 tion, tliere being uo presumption in their case according to the 
 common law in regard to acquisition of permanent occupancy rights, 
 except by grant or prescription. What the proposed law has to do is 
 to define the relations of ryots proper to the melvaramdar immediately 
 above them- The provisions to be made in their case are these : — 
 
 I. As regards fixity of tenure, (i) All lands to be presumed to be 
 ryoti unless the contrary is shown; (ii) continuous possession as tenant 
 of land, for 12 years, originally private, to convert it to ryoti land ; 
 (iii) all occupants of ryoti land to be considered to have permanent 
 occupancy right in it ; (iv) no occupant of ryoti land to be evicted 
 except by a decree of court; (v) waste lands to be granted by the 
 melvaramdar to the resident ryots in the first instance and failing them 
 to strangers, on ryoti tenure on terms applicable to lands of similar 
 description and quality in the village ; (vij ryots and melvaramdars to 
 be entitled to apply to the Collector for a measurement of the holdings 
 and determination of the classification of lands as ryoti or private ; 
 (vii) the melvaramdar to be entitled to apply to the court for permis- 
 sion to enclose waste land and add it to private land for the purpose 
 of forming plantations, or growing jungles, and the application to be 
 granted after giving notice to the ryots and hearing their objections 
 in the manner provided in the Forest Conservancy Act, and making 
 sufficient allowance for bond fide increase of cultivation and pasturage 
 requirements of the ryots ; (viii) Government to have power to order 
 the survey of any estate whenever this may be deemed necessary 
 in the interests of public peace, to determine once for all what lands 
 are 7'yoti and what jjrivate ; the cost to bo charged to the melvaramdar 
 and the ryots in defined proportions determined by the Collector with 
 reference to the relative values of the interests of the melvaramdar 
 and the ryots in the lands, and payable in instalments not exceeding 
 10 per cent, -of the rent payable to the Zemindar ; (ix) in private 
 lands, the melvaramdar^s rights to be governed by the ordinary laws 
 of property and contract. 
 
 II. As regards enhancement of rents and right to make improve- 
 tnents. (i) Occflpants of ryoti land not to be compelled to pay more 
 than the customary rate of rent whether in money, grain or share of 
 the crop, and not more than a " fair and equitable " rent in any case, 
 i.e., a rent which leaves to the ryot enough to reimburse him for the 
 cost of labour and cultivation together with a fair farming profit ; (ii) 
 the rent paid during the last 3 years to be considered ^' fair and 
 equitable " unless the contrary be shown ; (iii) the occupant of ryoti 
 land to be at liberty to adopt any mode of cultivation he thinks fit, 
 provided he pays a rent determined with reference to the standard 
 rrop of the village ; (iv) he is to have the prior right to make perma- 
 nent improvement to the land, and failing him, the melvaramdar is to 
 have the right ; (v) where the value of a ryoti holding becomes enhanced 
 by the ryot's improvement he is to have the whole benefit of it ; (vi) 
 where the value becomes enhanced by the melvaramdar's improvement^ 
 the melvaramdar is to have the whole benefit, due allowance being made 
 for any increase of 'cost of cultivation and for fair profit on such cost ; 
 (vii) where the increased value of the holding is due to water supplied 
 by Glovernment and the charge for water is directly paid by the ryot, 
 the latter is to have the whole benefit ; and if the Zemindar under-
 
 ccliv 
 
 takes to pay for the water, the additional charge leviable from the 
 ryot to be fixed under general rules as regards the collection of water 
 rate fixed by Government ; (viii) where there is an increase in the 
 productive powers of land by natural causes, increased agricultural 
 skill and knowledge, discovery of cheap chemical manures, &c., the 
 benefit is to be enjoyed by the ryot ; (ix) when there is an increase 
 in the money value of the holding due to enhanced prices of standard 
 produce, the melvaramdar is to be entitled to claim additional rent 
 not exceeding two-thirds of the proportionate increase in the rent, the 
 remaining third being intended to defray the increased cost of culti- 
 vation, &c., due to increased price of produce; (x) enhancement by 
 voluntary agreement not to exceed 2 annas in the rupee or 12| per 
 cent., whether in money or grain, the agreement to be in writing 
 and registered : (xi) rent once enhanced by voluntary agreement or 
 decree of court not to be liable to be enhanced again fpr 15 years ; 
 (xii) the court to be authorized to decree that increased rent to which 
 the melvaramdar is entitled shall be imposed by gradual increments to 
 prevent hardship to the ryot ; (xiii) the ryot to be allowed abatement 
 of rent for deficiency in the area of holding and also for loss of pro- 
 duce by natural causes in cases in which he is entitled to remission 
 according to usage ; (xiv) melvaramdar or the ryot to be entitled to 
 apply to the court for the conversion of grain rents into money- rents ; 
 (xv) Government to frame rules and make arrangements for fixing 
 the standard produce with reference to which rent is to be regu- 
 lated and for periodical publication of lists of prices of produce, and 
 (xvi) the above provisions not to apply to " private lands " of the 
 melvaramdar. 
 
 III. As regards the right to transjer or sub-let Jioldings. (i) Right 
 of transfer to be freely allowed to occupant of ryoti land, but the 
 Zemindar to have a prior lien on the land transferred for unpaid 
 balance of rent next after Government revenue, the balance, however, 
 exceeding 3 years^ rent not being enforceable against the land. 
 Tenants of private land not to have any transferable right ; (ii) 
 sub-letting not to be allowed for more than 9 years at a time ; 
 (iii) melvaramdars to maintain a register of ryots paying rent to them 
 and to register transfers of holdings by decree of Court or private 
 contract, the transferor to continue liable for rent till the transfer is 
 registered. 
 
 IV. As regards the remedies to he provided for the recocery of remits. 
 (i) Landlord to be authorized to proceed nnder the .special law for 
 the recovery of rent only in cases in which he has tendered a puttah to 
 the tenant such as the latter is bound to accept; (ii) the landloi'd's 
 right to distrain to be limited to ungathered products or gathered 
 products stored on the farm or the threshing-floor; (iii) an occupancy 
 ryot not to be ejected for non-payment of rent but his interest in the 
 land to be sold, the sale being free of encumbrances on the kudivai'am 
 right, not created with the landlord's consent ; (iv) a tenant of 
 private land to be liable to ejectment; (v) Government to be em- 
 powered to invest any officer of Government witt the powers of a 
 court under the special law. 
 
 V. As regards the duties of landlords, (i) Landlord not to levy' 
 any unauthorized cesses or dues in money or labor beyond what may
 
 cclv 
 
 be spetJified in the puttah ; (ii) landlord to keep irrigation works in 
 order and liability to be enforced on complaints from ryots by carrying 
 out the necessary repairs and levying the cost from him ; (iii) village 
 establishments within the landlord's estate to be maintained in a 
 state of efficiency. 
 
 (7) Extract from Sir He nr If Maine's speech oit the Pcmjab Tenanrtj Bill 
 before the LeyisJatlvc Coiotnl of India in October 1868. 
 
 As regards the hardship of requiring strict proof in a court of 
 justice of the existence of customary rights and privileges under con- 
 ditions which preclude settled authority and regular government, and 
 the necessity for inferring the existence of such rights and customs 
 from the facts ascertained as regards whole tracts of country, and not 
 in individual cases, the following extracts from Sir Henry Maine's 
 speech on the Panjab Tenancy Bill before the Legislative Council of 
 India in October 1868 may be usefully consulted. 
 
 " Property in land which had little or no value before annexation 
 (of the Pacjab) has now a very great and distinct value, and the real 
 struggle obviously is whether, in the case of occupancy tenants, the 
 new profits shall be divided between them and the landlords, or shall 
 wholly go to the landlords. The position, therefore, of the two par- 
 ties to this contention iu the Settlement Courts was this : on the 
 one side, you had very ignorant men, asked very difficult questions as 
 to indistinct ideas of old date. On the other, you had witnesses, a 
 shade better educated, more thoroughly aware of the matter in hand, 
 but under the sti'ongest temptation to adapt their testimony to their 
 interests 
 
 "I observe, for example, that in a great number of cases the 
 persons under examination, whether landlords, tenants or witnesses, 
 were asked whether a particular person had a right to do a particular 
 thing, and the point was frequently put for decision to the committees 
 who acted as referees. 1 do not mean to say that the word ' right ' 
 was invariably used, but the questions constantly implied the notion 
 of a right, or some shade of it. Now, every body who has paid even 
 a superficial attention to the subject is aware that there is no more 
 ambiguous term than ' right,' and no idea less definite. I do not 
 suppose that in the Oriental patoi>< in which the questions were asked, 
 the word is less equivocal than in the cultivated European languages, 
 and yet in Europe it is only the strictest and severest jurists who 
 speak of rights with accuracy. Prima facie, when you ask whether a 
 class had rights of a particular kind, you mean Jegal rights ; but legal 
 rights imply a regular administration of fixed laws, and there was 
 confessedly no such administration under Sikh rule. Yet I find 
 Settlement Officers enquiring about rights of eviction or enhancement, 
 without explaining (and apparently without being conscious of the 
 need o* explaining:) whether the rights in question were of the nature 
 of legal rightB, or whether moral rights were meant, or whether what was 
 intended was merely the physical power of the stronger to do what he 
 pleased with the weaker. And these difficult and ambiguous ques- 
 tions — questions which in reality sometimes involved highly refined 
 abstractions — questions which I do not hesitate to say that, even if I 
 had been cognizant of the facts, I could not myself have answered
 
 colvi 
 
 without fuller elucidation of their meaning — were put to ignor'ant and 
 uneducated men, to men, therefore, who, like all ignorant men, are 
 capable only of thinking in the concrete and in connection with actual 
 facts, and were put, moreover, with reference to a state of facts which 
 ceased to exist twenty years ago. Perhaps, Sir, it may be said that 
 the rights about which enquiry was made were customary rights — 
 rights arising under a custom. But here, so far from having my ideas 
 cleared, 1 find myself in greater difficulties than ever. For it appears 
 to me, that in the papers relating to the recent Panjab yettlement, 
 the word ' custom ' is used in a sense certainly unknown to jurispru- 
 dence, and I believe also, to popular usage. A custom is constantly 
 spoken of, as if it were independent of that which is generally, if not 
 universally, considered to be the foundation of a custom. According 
 to the understanding of lawyers, and I should have said according to 
 the understanding of all men, barbarous or civilized, the foundation of 
 a custom is habitual practice, a series of facts, a succession of instances, 
 from whose constant recurrence a rule is inferred. But the writers of 
 these papers perpetually talk of customs of eviction, or of enhance- 
 ment, or of rack-rent, and in the same breath admit the non-existence 
 of any practice of the kind alleged. Some broadly state that there 
 never was an instance of the customary right being exercised ; nearly 
 all allow that its exercise was as rare as possible, nor do they attempt 
 to show that the rare instances of its exercise were not simple acts 
 
 of violence I do not pretend to have an exhaustive 
 
 acquaintance with the voluminous literature of Indian revenue settle- 
 ments ; but I know something of it, and I think I can see that the old 
 investigators of Native customs proceeded on a mode of enquiry which 
 is perfectly intelligible. They enquired for the most part into prac- 
 tices and into facts, not into vague opinions. They inferred a rule 
 from the facts they believed themselves to have discovered, and then 
 they stereotyped it. No doubt they may have made mistakes. They 
 may have generalised too rapidly, may have neglected local exceptions, 
 and may have made a usage universal which was only general or even 
 occasional. ^^ 
 
 N.B. — The occasion for the above speech was the following : 
 Soon after the Panjab was annexed, there was a revenue settlement of 
 the Province and in the course of it, large numbers of tenants were, 
 after enquiry, declared to possess permanent occupancy rights. Twenty 
 years later, there was a revision of settlement, in which it was alleged 
 that a mistake was committed in declaring the tenants to have occu- 
 pancy rights, and that further enquiry showed that they were merely 
 tenants-at-will, and it was proposed that those who had been recog- 
 nized as permanent tenants should be transferred to the. latter class. 
 Sir Henry Maine protested against the injustice of the proposal and 
 pointed out that the results of the earlier enquiry were likely to be 
 more correct than those of the later. 
 
 (8) Extract from Sir Frederick Pollock's *' English Land Laws." 
 
 As regards the successive steps by which '' common land," held 
 as separate property not by individuals but by communities, became 
 saleable and marketable property, Sir Frederick Pollock remarks 
 in his '' English Land Laws " as follows :
 
 cclvii 
 
 ''In old times it could not be disposed of by the holder, but 
 a custom gradually arose of alienating it by will, and perhaps by pur- 
 chase^ within the limits of the family. Freedom of alienation became 
 greater as the bonds of the village community or township and of the 
 family were loosened. The order of the steps would be of this 
 kind : — First, no alienation but only inheritance ; then, alienation 
 within the family^ but with the consent of the possible heirs as well as 
 the community ; lastly^ the consent of the community would become a 
 mere form. Where a lord of the manor had acquired the powers 
 of the community, he probably acquired among them the veto on 
 alienation which in historic 'times he certainly possessed. In this 
 later shape also, the restriction became a formality, but not an empty 
 one. The lord's consent to alienation could not be refused if the 
 accustomed dues and fines were paid.'' 
 
 The steps in the transition of common to individual property have 
 been the same in India, except that freedom of bequest is an idea 
 quite foreign to Hindu law and has come into existence within a very 
 recent period. 
 
 As regards the English " copy-holder/' Sir F. Pollock states that 
 he is a tenant of a manor^ who is said to hold his tenement " at the 
 will of the lord according to the custom of the manor." This means 
 that the tenant's rights are nominally dependent upon the will of the 
 lord ; but the lord is bound to exei'cise his will according to the 
 custom, so that the tenant is really as safe as if he were an absolute 
 owner. The tenant's title is evidenced by the records of the lord's 
 court. The tenant cannot cut timber or open mines, and he has to 
 pay a heriot on succession, — give the best beast or the best chattel. 
 
 As regards the origin of the copy-hold tenure Sir F. Pollock 
 observes '' Blackstone's account is ' copy-holders are in truth no other 
 than villeins, who by a long series of encroachments on the lord have 
 at last established a customary right to those estates which were held 
 absolutely at the lord's will.' It would be nearer the truth to say 
 that by* a long series of encroachments and fictions the lords and 
 lawyers acting in the interest of the lords got people to believe that 
 the lord's will was the origin of those ancient (mstomary rights which 
 before were absolute." 
 
 The following is the account given of the manner in which the 
 English law of landlord and tenant was developed : — 
 
 *' The truth is, and it may as well be stated at this point, that 
 the law of landlord and tenant has never, at least under any usual 
 conditions, been a law of free contract. It is a law of contract 
 partly express, partly supplied by judicial interpretation^ and partly 
 controlled by legislation, and sometimes by local custom. So far 
 as the terms and conditions are express, they are in the vast 
 majority of cases framed by the landlords or their advisers. The 
 tendency of judicial interpretation has also been, until lately, to incline 
 the scale of presumption in favor of the landlord on doubtful points ; 
 and the same may be said of the ruling tendency of legislation down 
 to the middle of the present century. The allowance of local cus- 
 toms, which might have done much to redress the balance if taken 
 up betimes, depends on the tendency of the judges. When special 
 
 K K
 
 colviii 
 
 customs were looked on as a kind of natural enemies of tlie common 
 law, and strict proof of them was required, they got little help in court. 
 Probably many tenants in past times failed to establish customary 
 rights, or have been discouraged by the failure of others from asserting 
 them, in cases where the decision would now be the other way.'^ 
 
 As regards the rights of the lord of the manor to the waste. Sir 
 F. Pollock says, **" the waste of the manor is, in modern legal theory, 
 so much of the lord^s land as his predecessors have not found it worth 
 while to take into cultivation on their own account or to let out to 
 tenants/^ The tenants enjoyed various privileges over these lands, 
 and these liberties have ripened into rights. This theory reverses the 
 facts, but not without some qualifications. " A great many of the 
 manors, now or formerly existing, represent ancient communities in 
 which, little by little, the authority of the community was engrossed 
 by the most considerable man in it, until he became the. lord and 
 the other landholders became his dependents. But a manor might 
 also be formed without going through the earlier stages at all. 
 Free dependents and emancipated serfs might gather round a lord 
 until they formed a community comparable in size to the old free 
 township. Under such conditions we should expect usages to spring 
 up imitated from those of the old communities, and modelled as far as 
 possible on them; but these usages would, in such a case, really owe 
 their force to the permission and consent of the lord, as they were 
 feigned to do by the theory of the lawyers in the case where the lord 
 was only an overgrown member of the township. Thus we have 
 a possible class of cases in which the theory to some extent answers 
 to the real facts." 
 
 (9) Note on the discussions in the Madras Presidency as regards the 
 preferential rights of Mirasidars and resident ryots to cultivate 
 waste lands in their villages as against strangers and the final 
 settlement of the question. 
 
 Mirasi claims were cropping up continually in the first half of the 
 century and produced quite a literature of their own which will be 
 found collected in Mr.. Huddleston^s compilation, entitled " Papers on 
 Mirasi Right." These claims were troublesome to deal with for seve- 
 ral reasons. In the first place, the traditional feelings of the early 
 English administrators, derived from the state of landed property in 
 their own country, was opposed to the recognition of such claims, 
 incompatible as they seemed with the right of Government to claim a 
 large share of the produce of land, which was denominated rent and 
 which entitled it, according to English notions, to be regarded as the 
 absolute proprietor of land. There was much also in the state of the 
 country to favor such an impression. These Mirasi claims were of a 
 pronounced type only in a few districts and in others, they were vague 
 and undefined, and in some to all appearance, hardly a trace of them 
 had been left. In some of the southern districts, notably in Chingle- 
 put and Tanjore, the Mirasi right was in full operation ; in several 
 other districts it was in various stages of decay, although a traditional 
 feeling in regard to it still existed ; in others again, especially in the 
 Northern Circars, even this traditional feeling had become effaced. 
 Wherever by previous mis-government and heavy assessments, land
 
 oclix 
 
 had lost all saleable value and the greater portion of arable land was 
 out of cultivation, and the efforts of the officers of Government were 
 directed towards saddling the ryots with more land than they could 
 cultivate, as was the case under the Dittam system in the dry dis- 
 tricts, Mirasi rights would rather be a burden than a privilege ; and 
 the longer this state of things continued the less would be the chance 
 of the ryots asserting their rights. In the few favorably circum- 
 stanced districts in which land had some saleable value, these rights 
 would be clung to with great tenacity. This was exactly what hap- 
 pened. The result was two schools of writers on Indian land tenures, 
 one asserting that land was the property of Government and the ryots 
 merely cultivating tenants, and the other, that the ryots were proprie- 
 tors of the land they cultivated. The Government of the day was 
 Called upon to decide between these two conflicting theories and a 
 discussion was kept up for nearly 40 years. There was one incident 
 of the Mirasi tenure which almost all engaged in the discussion were 
 unwilling to admit (viz., the absolute right of the Mirasidars to waste 
 lands), as being inconsistent with the right of Government to levy its 
 share of the crop as revenue. The Mirasidars claimed the right to 
 keep the waste lands uncultivated themselves and to prevent Govern- 
 ment from finding other ryots to cultivate them. Such a right, in the 
 interests of revenue and of the general public, the Government (jould 
 not acknowledge. The Government was willing, however, to acknow- 
 ledge the right of the Mirasidars to hold the lands they cultivated so 
 long as they paid the assessment ; nay more, it was willing to concede 
 the same right even to new cultivators and it reduced the heavy 
 assessments wherever it was necessary to create a substantial interest 
 for the ryot in the soil. As regards waste lands whenever there was 
 any demand for them it was willing to acknowledge the rights of the 
 Mirasidars so far as to give them the refusal, before granting them 
 to strangers, but in this respect it would treat the old Mirasidars and 
 the new puttadars in the same way. Government recognized mirasi 
 rights only to this extent, but if the Mirasidars had any further 
 rights they were to establish them before the judicial tribunals. In 
 the language of the Board of that day, by this decision the question 
 of Mirasi rights was " set at rest.^^ The following quotations from 
 " Papers on Mirasi Right " establish this position : — 
 
 In their Despatch, dated 28th July 1841, the Court of Directors 
 stated that '^ without entering upon a discussion of the respective 
 rights of Government and the Mirasidars over the waste lands (a point 
 still under tbe consideration of the superior tribunal to which the 
 case has been appealed), it will be enough for us to state our opinion 
 that it is desirable that in all cases where Payacarries propose to culti- 
 vate the waste lands of a Mirasi village, their proposal should be in 
 the first instance communicated to the Mirasidars, to whom, in the 
 event of their being willing to cultivate, or to give security for the 
 revenue assessable on the land, the preference should be given. We 
 consider that the Government has a clear right to the revenue to be 
 derived from the conversion of waste lands into arable, but we, at the 
 same time, think it preferable that this object should be obtained, 
 whenever practicable, without the intrusion of strangers into the 
 village community.'^
 
 ccix 
 
 In their Proceedings, 11th. November 1841, the Board remarked as 
 follows : — " Under this view of the case, it is not considered exj)edient . 
 to raise abstract questions of the extent of the Mirasidars' rights in 
 regard to the village waste. No opinion on these points would be 
 binding upon any court of law in which the questions might be mooted 
 by parties dissatisfied with the dictum of the Revenue authorities, 
 and it seems quite unnecessary to raise the question with a view to its 
 solution by the highest legal authorities, unless it could be shown that 
 under the existing practice the interests of Government are compro- 
 mised or injured. 
 
 " Mr. Kindersley's first question is whether in default of means or 
 desire of Mirasidars to exercise their right of cultivating the waste, 
 their consent is necessary before the Government can grant the land 
 for cultivation to a stranger. To this the Board can only reply, that 
 it is the custom generally to give the option of occupation to the 
 Mirasidars -and to the kadeem ryot where no Mirasi exists, in prefer- 
 ence to a stranger. It matters not what the law may be on this 
 point ; much of the revenue practice is founded on custom, and the 
 practice is both, the Board believe, favorable to Government and in 
 accordance with the feelings and sentiments of "the people. 
 
 " The second question is to the effect whether the offer of strangers 
 can be accepted by Government if more favorable than that of the 
 Mirasidars ? To this the Board answer, most unquestionably it cannot. 
 The admission of such a practice would virtually set aside the prescribed 
 remission of assessment on the redemption of waste existing in every 
 Province. 
 
 '' The Board cannot conceive a case in which the interests of 
 Government can suffer materially by the continuance of the system 
 that now prevails. If the Mirasidars can, by themselves or through 
 others, undertake the cultivation of all the reclaimable lands of their 
 village and pay the established dues of Government, no loss is sustained 
 by the State. If they cannot do this or if they neglect to do it, then 
 the rule is to give the land as well as the Toondoovarum thereon to any 
 stranger who chooses to undertake it. Thus the right of Government 
 which is simply the right to claim the authorized assessment is abundantly 
 protected. 
 
 " The only possible profit or advantage that Government could 
 derive in assuming the right to dispose of waste laud for cultivation 
 without reference to the Mirasidars or ancient cultivators would consist 
 in the sums they might derive, over and above the legitimate annual 
 land-tax, by selling to the best advantage the right of occupancy, as 
 the ryots now do in some instances. The assertion of such a right, 
 even if it vjas upheld by judicial decision, would lead, it is believed, to 
 much discontent and dissatisfaction, and be powerless in the main as a 
 means of raising revenue." 
 
 In the Despatch of the Court of Directors, dated 3rd July 1844, they 
 remarked " from the perusal of the decree of the Provincial Court, it 
 appears to us that that tribunal has declared the law to be in accord- 
 ance with what, in para. 55 of our Despatch, dated 28th July 1841, we 
 desired might be generally adopted in practice in similar cases, viz., 
 that when proposals were made by Porakudi ryots for waste lands in
 
 colxi 
 
 Mirasi villages, they should, iu the first instance, be communicated to 
 the -Mirasidars, to whom in the event of their being Avilling to cultivate 
 or to give security for the revenue assessable on the lands, the 
 preference should be given. 
 
 " In the case which has now been brought under discussion, this 
 course was not adopted by the Collector, and it would appear that the 
 question still remains undecided, whether Government possesses the 
 right, in the event of the Mirasidars refusing to cultivate or to give 
 security for the revenue, to alienate waste lands in Mirasi villages to 
 Porakudi cultivators either for a term or in perpetuity. We trust, 
 however, that on all occasions care will be taken that the just rights of the 
 Mirasidars shall be respected." 
 
 ^In Q-.O., dated 1st March 1849, Government said, '' The Right 
 Honorable the Governor in Council has only to obsei've, in reference to 
 the foregoing Proceedings of the Board of Revenue, that the principle 
 which the Honorable the Court have laid down for the guidance of this 
 Government, in the disposal of waste lands, is, that the ryots of 
 the village in which the waste land is situated should invariably have 
 the option of holding it for cultivation on certain terms. If they refuse, 
 the Collector is justified in giving such land to strangers." 
 
 The Court of Directors in their Despatch, dated 17th December 
 1856, remarked as follows : — 
 
 " In para. 27 you have referred to the rights of Mirasidars over the 
 waste lands of their villages, and you observe that ' under moderate 
 assessment ' land ' will become valuable, the rightful holders will 
 occupy it themselves, sub-letting it or part of it, and will no longer 
 quietly submit to its being given away to those who have no rightful 
 interest in it.' 
 
 " The question involved in this para*, is one of very considerable 
 importance and it would appear that you now propose to deal with it 
 in a manner at variance with the practice which has hitherto prevailed. 
 We desire that in the disposal of waste land you will be guided by the 
 principles laid down in para. 55 of our Despatch of the 28th July 1841, 
 3rd July 1844, &c. 
 
 "■ We see no reason to change the opinions respecting the rights of 
 Mirasidars which we entertained when these paras, were written. 
 Whenever, as in Tanjore, any remains of Mirasi right have survived to 
 the present time and have actual existence, we do not desire that it 
 should be interfered with, but where, as in the greater portion of your 
 Presidency, it has fallen into desuetude, and has only been known in 
 name ever since we have obtained possession of the country, we think 
 that it would be unwise and inexpedient to make any attempt for its 
 revival. 
 
 '' When applications for waste land are made by strangers, they 
 should be communicated to the resident ryots of the village, whether 
 claiming to be Mirasidars or not, and the option should be given to 
 them of engaging for it, finding security for the payment of the assess- 
 ment. Should they or any of them think fit to do so, they would of 
 course be at liberty either to cultivate the land themselves or sub-let 
 it ; but the payment should be strictly enforced, in order, on the one 
 hand, to prevent transactions in the nature of land jobbiu^^ aii,d on the
 
 cclxii 
 
 other, to deter the villagers from engaging for land merely for the 
 purpose of excluding others who might be desirous of holding it direct 
 from Government^ but who objected to take it as their sub-tenants. 
 In cases where the resident ryots should refuse to engage for the waste 
 lands of their village. Government may exercise the right of granting 
 them to the persons applying, who would then hold the same position 
 and possess the same rights in all respects as the other ryots of the 
 village.'^ 
 
 InG.O., 5th June 1857, Government remarked '' we apprehend that 
 the views on this subject recorded by Sir Thomas Munro would be 
 generally acceded to, viz., that Mirasidars had no rights over lands 
 reclaimed by others without their agency, and that their rights in 
 regard to immemorial waste were good against strange ryots but not 
 against the Government ; and it was the established rule, prescribed 
 by your Honorable Court, that waste land in a village was not to be 
 given to a stranger until it was first offered to and refused by the 
 resident ryots or Mirasidars/^ 
 
 The Board in their Proceedings, dated 15th July 1857, observed as 
 follows : — " The Board trust that as regards the provinces, the question 
 is now so far set at rest by the decision of the Court of Directors, as to 
 guide the Revenue officers and that when the old residents of a village, 
 whether they call themselves Mirasidars or not, decline to cultivate 
 (or else pay for) waste land, the usual puttahs may be given to dur- 
 khastdars without forcing them to become sub-tenants of the old resi- 
 dents, and that the influence which the so-called Mirasidars have 
 hitherto exercised in keeping much land out of the occupation of 
 others though not occupying themselves, may be put an end to." 
 
 The above extracts make it clear that the Court of Directors told 
 the ryots somewhat as follows : — 
 
 '' You claim a lot of things under the description of Mirasi rights. 
 We cannot find out what they exactly are and how far you are justly 
 entitled to them. There is one thing we gladly recognise ; it is your 
 right to hold the land you cultivate. There is another thing also we 
 will concede ; it is that whenever we receive an offer to cultivate 
 waste land in your village, we will give you the option of taking it 
 up yourselves, should you be willing to do so. We mean to concede 
 this right not only to you who call themselves Mirasidars, but to ryots 
 of all descriptions, for we do not know what your mirasi means, and 
 we are not going to be bothered with any further discussions on that 
 subject. We wish to see all puttadars, whether belonging to the 
 class of ancient Mirasidars or recently created, placed on an equal 
 footing so far as it is in our power to do so ; and certainly the prefer- 
 ential right which we wish to give them is not only in accordance 
 with long standing custom but also public policy. You must clearly 
 understand that we will not indulge your' dog-in-the-manger spirit of 
 neither cultivating the waster lands yourselves nor allowing strangers 
 to cultivate them, thus preventing extension of cultivation and increase 
 of onr revenue. If you think you can establish such a right you may 
 do so before the Court of Justice." 
 
 This is no doubt a rough and ready solution of a much vexed 
 question, but it has been acted upon and acquiesced in for the last 30 
 years and has now become a part of the common law of the country,
 
 colxiii 
 
 even if it was not so before. The rule was passed in the spirit of 
 compi'omise allowing to Mirasidars such rights as they possessed if 
 they were found not to be inconsistent with good policy, and the same 
 policy required that all puttadars should be treated alike to put an end 
 to interminable disputes as to whether a puttadar was an ancient 
 occupant or a Payacari, The well-known work of Sir Henry Maine 
 on Village Communities has established the fact that throughout the 
 whole of India^ and probably throughout the whole of the ancient 
 world, property in land was vested in yillage communities whose 
 rights extended not only to cultivated lands, but also to the waste 
 lands of the village, and customs and forms of property derived from 
 this tenure survive to this day in the greater part of India. Regard- 
 ing waste lands Sir H. Maine writes as follows : — " The waste or 
 common land of the village community has still to be considered. 
 One point of difference between the view taken of it in the East and 
 that which at all times seems .to have been taken in Europe deserves 
 to be specially noted. The members of the Teutonic community 
 appear to have valued the village waste chiefly as pasture for their 
 cattle, and possibly may have found it so profitable for this purpose as 
 to have deliberately refrained from increasing that cultivated portion 
 of it which had been turned into the arable mark. These rights of 
 pasture vested in the commoners are those, I need scarcely tell you, 
 which have descended but little modified to our own day in our own 
 country -, and it is only the modern iinprovements in the methods of 
 agriculture which have disturbed the balance between pasture and" 
 tillage, and have thus tended to multiply Inclosure- acts. But the 
 vast bulk of the natives of India are a grain and not a flesh eating 
 people. Cattle are mostly regarded by them as auxiliary to tillage. 
 The view, therefore, generally taken (as I am told) of the common-land 
 by the community is that it is that part of village domain which is tempor- 
 arily uncultivated, but which will some time or other be cultivated and 
 merge in the arable mark. Doubtless it is valued for pasture, but it 
 is more especially valued as potentially capable of tillage. The effect 
 is to produce in the community a much stronger sense of property in 
 common -land than at all reflects the vaguer feeling of right which, in 
 England at all events, characterises the commoners. In the later 
 days of the East India Company, when all its acts and omissions were 
 very bitterly criticised, and amid the general re-opening of Indian 
 questions after the military insurrection of 1857, much stress was laid 
 on the great amount of waste land which official returns showed to 
 exist in India, and it was more than hinted that better government 
 would bring these wastes under cultivation, possibly under cotton 
 cultivation, and even plant them with English colonists. The answer 
 of experienced Indian functiionaries was that there was no waste land 
 at all in India. If you except certain territories which stand to India 
 Proper much as the tracts of land at the base of the Rocky Mountains 
 stand to the United States — as for example, the Indo-Chinese province 
 of Assam — the reply is substantially correct. The so-called waste, 
 lands are part of the domain of the various communities" which the 
 villagers, theoretically, are only waiting opportunity to bring under 
 cultivation. Yet this controversy elicited an admission which is of 
 some historical interest. It did appear that, though the Native Indian 
 Government had for the most part left the village communities entirely 
 to themselves on condition of their paying the revenue assessed upon
 
 cclxiv 
 
 them, they nevertheless sometimes claimed (though in a vague and 
 occasional way) some exceptional authority over the wastes ; and 
 acting on this precedent, the British Government, at the various 
 settlements of land revenue, has not seldom interfered to reduce 
 excessive wastes and to re-apportion uncultivated land among the 
 various communities of a district.'^ 
 
 This extract makes it clear that the waste lands are not unre- 
 servedly at the disposal of Government. They in the first instance 
 belong to the ryots in common, but the State occasionally interferes 
 for the pi'otection of its rights. In the present case, it has done so by 
 ruling that the land will be given away to a stranger if the resident 
 villages are not willing to cultivate it. 
 
 The passages quoted from Sir H. Maine's work are almost identi- 
 cal with G.O., dated 27th May 1856, No. 667, in which it is stated :— 
 '^ The waste land in this country in the villages of the plains at least^ 
 is certainly not the property of Government or the State in the 
 absolute sense in which the unoccupied land in the United States and 
 some of the British Colonies is so. The village communities claim an 
 interest in it and that interest has been universally admitted though not 
 accurately defined. To put up the waste to sale, entirely ignoring that 
 prior right of the village communities, would be to introduce a totally 
 new practice; and it would certainly be regarded hij the common feeling 
 of the countr// as an invasion of existing rights." 
 
 In former times, if the Government thought that waste lands 
 remained uncultivated through the fault or negligence of those entitled 
 to cultivate them, the offending parties would have been coerced to do 
 their duty. Menu says " If land be injured by the fault of the farmer 
 himself, as if he fails to sow it in due time, he shall be fined ten times 
 the king's share of the crop, that .might otherwise have been raised ; 
 but only five times as much if it was the fault of his servants without 
 his knowledge." Under the present regime of personal freedom, the 
 coercive power which can no longer be applied is transmuted into a 
 power to declare the right to cultivate the lands forfeited, when an 
 oflfer is made by a stranger to cultivate such lands, and the Mirasidars 
 after due notice are unwilling to cultivate them and pay the revenue 
 assessed thereon. 
 
 (10) Extract from the speech of the Honorable Mr. Ilbert in the Legisla- 
 tive Gouncil of India on the Bengal Tenancy Bill in 1885. 
 
 " The Bengal ryot is not the same thing as the English farmer ; he 
 is something widely different from him. But he presents many curious 
 and instructive points of resemblance to the English customary tenant 
 of some six or seven centuries ago. The .rights and powers claimed 
 by the Zemindar are not unlike those once claimed by the feudal lord 
 of the manor ; the privileges, duties, liabilities of the ryot resemble in 
 some important particulars those which once belonged to the English 
 customary tenant and which were gradually developed into the status 
 either of the free-holder or copy-holder. In the phrase which is still 
 technically applied to the English copy- holder, viz., that he holds 'at 
 the will of the lord according to the custom of the manor,' we discern 
 echoes of the controversies which once raged round the customary 
 tenant of the English manor and which still rage round the position of 
 the Bengal ryot — controversies in which the assertion of high pro-
 
 cclxv 
 
 prietary rights on the part of the landlord is set against the assertion 
 of strong customary privileges on the part of the tenant. If we were 
 to pursue the investigation further we should find equally suggestive 
 analogies. The bewildering multitude of tenures with local variations 
 of nomenclature and incidents finds its parallel in the multitude of 
 subordinate interests in land which are recorded in the Domesday 
 Survey, the English record of rights in the 11th century. Again it is 
 well known that there is no point in English legal history which is 
 more obscure than the question of extent to which and the circum- 
 stances under which alienation of land was legally recognised and 
 actually took place before the 13th century. But in the midst of this 
 obscurity, one fact is clearly established, viz., that such alienation as 
 took place assumed the form not of sale but of subinfeudation or sub- 
 letting, and the extent to which this sub-lotting was carried was 
 distasteful to the superior lords. We know that at the instance of the 
 great lords a famous statute was passed to stop sub-letting ; we know 
 that while the intention of the statute was to stop sub-letting, its 
 etfect was to legalize free sale, that it enabled the fee simple tenant to 
 alienate his interest without consulting his lord and that it has since 
 become the foundation of modern English law of the sale of land. If 
 there had been a Hansard in the days when the statute " Quia Emp- 
 tores " became law, he might pei'haps have supplied us with additional 
 arguments for and against the comparative merits and demerits of 
 sub-letting and free sale. 
 
 '' However, I do not intend to weary the Council with any elabo- 
 rate historical disquisition. My object in touching on these analogies 
 between the past and the present is not to demonstrate — what has been 
 demonstrated to satiety — that the application of the modern English 
 landlord and tenant law to the relation of Zemindar and Ryot would 
 be both an anachronism and a political blunder ; but also to illustrate 
 some of the exceptional difficulties which suri'ound any attempt either 
 to declare or to amend the law bearing on those relations. For to say 
 that the Bengal ryot is still living in an age which to us Englishmen 
 has become an age of the past is to present only one side of the picture ; 
 there is another side to it. Side by side with the landlord who exer- 
 cises, and is content to exercise, his old customary rights so far as they 
 are compatible with the modern system of Government, we have the 
 auction purchaser who has bought his rights as a commercial specula- 
 tion, and thinks only how he can turn them to the best advantage. 
 Side by side with the hereditary tenant, cultivating and living on his 
 land, we have the enterprizing planter who has got his lease and wishes 
 to work it so as to extract from the land the greatest possible profit in 
 the smallest possible time. The modern theory of competitive rents 
 is jostling the old practice of customary rates ; the new fashion of 
 terminable leases is threatening to displace ancient occupancy rights. 
 The 13th century is being brought face to face with the 19th and is 
 striving with more or less success to understand and accommodate 
 itself to its ways. The cultivator for subsistence is giving way before 
 or developing into cultivator for profit ; those who have walked in the 
 dim twilight of custom are emerging into the hard and fierce glare of 
 law as administerd by the Courts. The ideas, habits and customs of 
 widely different ages and widely different civilizations are being thrown 
 into a common crucible and are assuming new and strange forms. We 
 
 LL
 
 cclivi 
 
 cannot arrest this process of change ; we cannot predict with' certainty 
 the rate at which it will progress or the direction which it will take if 
 left to itself. All that we can do is to endeavour by such means as 
 are at our disposal to guide it in the right direction, to ease off the 
 abruptness of the transition from the old to tho new, from an age of 
 feudalism to an age of industrialism ; to bridge over the gulf between 
 status and contract, to prevent custom from being too violently ousted 
 by competition ; to see that rules based on commercial transactions 
 between hard and keen men of business are not applied to the ignorant 
 and unlettered peasant, when he is unable to understand them or to 
 use them. 
 
 '' Can we afford to stand aside and let things drift, trusting that 
 they may somehow come out right in the end ? Such may be a policy 
 which would commend itself to some of the influential classes in the 
 country, to men of the strong hand and the long purse ; but such is not 
 the policy which the British Government has ever ventured or ever can 
 venture to adopt ; such is not our conception of the duty which we owe 
 to the millions whom Providence has confided to our care. We are 
 responsible for the introduction into this country of forces, which 
 threaten to revolutionize its social and economical system ; we cannot 
 fold our hands and let them work in accordance with nature's blind 
 laws. We must, to the best of our ability, endeavour to regulate and 
 control their operations, and in so doing it is inevitable that we should 
 occasionally interfere in a manner and to an extent which, to those whose 
 institutions have not for long ages undergone the strain imposed by 
 foreign conquest or foreign immigration, may not unnaturally appear 
 difficult to justify or explain. 
 
 " That in so doing we should be charged with ignoring or violating 
 the laws of political economy is a matter of course. We do not violate 
 or ignore those laws ; on the contrary, the whole of our action as a 
 State in legislation of this kind is based on a recognition and appre- 
 ciation of the laws which regulate the production and distribution of 
 wealth, just as the whole of our action as a State in dealing with 
 famine is based on the recognition and appreciation of the laws, so far 
 as they are discoverable, which regulate the occurrence of famines. 
 We do not ignore these laws ; but we proceed on the view that their 
 operation is capable of being modified and controlled by human 
 action. 
 
 " Assuming, then, that interference is justifiable and necessary, 
 what kind of interference is possible and expedient ; what kind of 
 legislation is suitable to the circumstances with which we have to 
 deal ? Must we not admit, are we not always being compelled to 
 admit, that it is a legislation of opportunism ? For a transitional 
 period final legislation is neither appropriate nor possible. What we 
 have to do is to establish a modus vivendi, a working arrangement not 
 merely between conflicting interests but between the customs, habits, 
 ideas and ways of different ages and different forms of civilization. 
 Our legislation must contain much that is in the nature of expedients, 
 adjustments, compromises ; it will inevitably contain provisions which 
 will be to political economists a stumbling block, and to lawyers — I 
 will say even to law-lords — foolishness — but which for all that may 
 be based on good, sound common sense.^'
 
 cclxvii 
 
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 cclxxii 
 
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 cclxxiii 
 
 (4) The following account of the methods of business adopted by firms 
 of Nattukottai Chetties established in Kariir (Coimhat ore District) in 
 lending money to ryots has been furnished by the Sub-Registrar 
 of Kariir. 
 
 There are twelve firms of Nattukottai Chetties established at Kariir 
 for lending money. Of these firms, four are wealthy and have dealings 
 to the extent of a lakh of rupees each. The investments of others vary 
 from about Es. 10,000 to Es. 50,000. The richest of them has banks 
 in Rangoon, Madm'a and Madras^ and it is from one of his agents that 
 the information given below was obtained. 
 
 When a ryot applies to the Chetties for a loan, which is not done in 
 writing, his name is noted down, and careful inquiries are made as to 
 whether the property owned by him will be sufficient security for the 
 loan. Villagers known to be respectable, and having transactions with 
 them, supply the Chetties with the necessary information on the point. 
 Village officers are consulted in cases of doubt, and all deeds relating to 
 the property upon which his claims rest are demanded and examined. 
 The Chetties are more ready to advance money on the secmity of lands 
 in the actual possession and enjojTiient of the ryot by right of purchase 
 or mortgage, than on the security of inherited property, as there are 
 chances of claims being disputed in the latter case. Encumbrance 
 certificates from registration offices are very rarely, if ever, required. 
 (There has not been a single application for general search in this year 
 on this account.) The Chetties and their agents have made themselves 
 thoroughly acquainted with the condition of the ryots living in the 
 viciDity of Karur. The help of the village officer is sought only where 
 reliable information cannot be had from other available sources. As a 
 rule, a ryot who has already had transactions with the bankers intro- 
 duces the applicant, and, if necessary, becomes his surety. The applicant 
 has not to wait for more than a week unless the amount is large, say 
 Es. 1,000. Promissory notes and simple bonds are accepted only when 
 the applicant is a well known and respectable man. Mortgage deeds 
 with personal security are the rule. 
 
 The Chetties do not keep any treasury in their banks, and there is 
 never more than a thousand rupees in reserve in the richest firm. They 
 are supplied with money according to requirements by their brethren in 
 Madras, with whom they keep accounts current. When a loan is 
 applied for, clients already owing are pressed hard and the advance is 
 made from recoveries ; when this is not possible, or when there is a like- 
 lihood of a longer delay than a week, money is obtained from Madras. 
 
 There are forty Nattukottai Chetties in Madras who supply their 
 brethren in the mofussil with sums of money whenever required, bearing 
 rates of interest which vary every month. These sums the mofussil 
 Chetties are at liberty to return without any restrictions as to time of 
 repayment. But, as a rule, all debts recovered are remitted at once to 
 Madras, vmless there is demand for fresh loans. The Madras Chetties 
 belong to one and the same sect and place as those in the mofussil, and 
 are therefore acquainted with the character and solvency of the latter 
 to enable them to judge as to how much can be safely advanced. The 
 rates of interest charged by the Madras firms on their mofussil bankers 
 vary according to demand every month. About the first of every
 
 r- 
 
 ■ 
 
 
 > 
 
 1890. 
 
 1891. 
 
 1892, 
 
 A. P. 
 
 A. 
 
 p. 
 
 A. P. 
 
 15 3 
 
 13 
 
 
 
 13 3 
 
 14 
 
 12 
 
 
 
 12 6 
 
 11 9 
 
 10 
 
 6 
 
 11 3 
 
 10 6 
 
 9 
 
 6 
 
 9 6 
 
 8 
 
 7 
 
 6 
 
 
 8 
 
 7 
 
 6 
 
 
 8 
 
 7 
 
 6 
 
 
 8 6 
 
 8 
 
 
 
 
 10 6 
 
 10 
 
 
 
 
 13 
 
 12 
 
 6 
 
 
 14 
 
 15 
 
 
 
 
 14 
 
 14 
 
 3 
 
 
 cclxxiv 
 
 Tamil month the forty Chetties meet in their temple and resolvfe as to 
 what rate should be adopted for the month. This is generally done by 
 a reference to the rates that prevailed in the same month in the previous 
 year. The actual rates charged during the last three years are given 
 below : — 
 
 Rate of interest charged. 
 
 Chittirai (April and May) 
 Vaiyasi (May and June) 
 Ani (June and July) ... 
 Adi (July and August) 
 Avani (August and September) 
 Purattasi (September and October) . , 
 Arpisi (October and November) 
 Kartigai (November and December) 
 Margali (December and January) .. 
 Tai (January and February) ... 
 Masi (February and March) ... 
 Panguni (March and April) ... 
 
 The balances outstanding to the credit of the Madras firms bear 
 interest month by month according to the rates then prevailing and not 
 according to any fixed rate. The average interest" for a year under 
 these calculations will be about 8 per cent. Every seven months the 
 interest is added to the balance and compound interest according to 
 rates as above stated is calculated. The mofussil Chetties take care, 
 therefore, to keep no account unpaid for more than seven months. This 
 is the main reason for the terms of repayment in their stipulations with 
 ryots being always short. One of the Chetties here gets money from 
 liangoon occasionally, but the rate of interest being higher there it is 
 not preferred to Madras. Remittances are made by currency notes, and 
 hundis where possible. 
 
 The establishment of each banker consists only of an agent or 
 kanakapillai (accountant) who does much of his business. Most of the 
 Chetties remain in Karur for about eight months in a year and transact 
 their business in person. During their absence the kanakapillais are 
 empowered to make loans and recover debts subject to conditions dilBEer- 
 ing according to the character and experience of the men. The richest 
 bankers have agents of their own class and do not stay in Kar6r long, 
 the agents doing all their business. No securities are taken from them. 
 
 who is the richest pays his agents Es. 500 a year each besides 
 
 undergoing their boarding expenses. Kanakapillais get from Es. 10 to 
 Es. 20 a month and keep their accounts in cadjan leaves. Their services 
 are availed of in writing documents, and they have also to go about the 
 villages collecting interest due. Debtors do not pay interest every 
 month, though in the documents they agree to do so ; generally once 
 in every three months or so it is collected. The profit and loss are 
 determined once every three years with some ; with others the periods 
 vary. 
 
 There is no particular season in which debts are recovered. During 
 the harvest seasons the ryots are pressed for payment, but they prefer 
 to keep what is harvested and sell the produce during the dearest season 
 to obtain a larger price. The payments are made throughout the year 
 according to individual convenience.
 
 cclxxv 
 
 The loans granted under the special well rules at a small rate of 
 interest were mostly in the months of March, April and May last, when 
 a Deputy Collector was specially deputed to this taluk for the purpose. 
 That these loans have affected the transactions of Nattukottai Chetties 
 will be clear from the number of documents executed and registered in 
 their favor in those months. The number of documents executed in 
 favor of five of the important Chetties in the three months in 1891 and 
 1892 have been compared, and it is found that while the total number 
 registered in 1891 was 88, the number has fallen to 30 in 1892. The 
 rates of interest have not, however, shown any decline. The sums lent 
 amounted in a large number of cases to from lis. 100 to Rs. 500, and 
 in very rare instances to Rs. 1,000. The average rate of interest for the 
 former class is Rs. 1-4-0 or 15 per cent, per annum. Deducting the 
 interest which the Chetties have to pay to theii' bankers in Madras, there 
 is a net gain of about 7 per cent. This does not, however, express the 
 full extent of theu' profit as some of them have invested funds with the 
 Madras bankers and share their profits also. Moreover it is not always 
 with remittances from Madras that they carry on their business. Sums 
 of Rs. 1,000 or Rs. 2,000 are got from their private funds at Devakota 
 in the Madura district, the central seat of Nattukottai Chetties. A deed 
 for Rs. 1,800 in May 1892 bears rate of interest at 12 annas per 
 mensem, the rate chargeable in Madras being about 14 annas in the 
 month ; this at first sight seems inexplicable. But as the interest is here 
 levied throughout the whole term at a fixed rate, and as the high 
 rates in Madras are payable only for two or three months, the same sum 
 bearing about 9 annas rate in July and August, the profit at the close 
 of the term will be large. 
 
 (5) The account given by Mr. Warden, Collector of Malabar in 1801, 
 of usurious money-lenders in Pdlghat. 
 
 " The cultivating ryot is obliged at the end of the year to borrow 
 money to purchase seed for the ensuing year's cultivation. To obtain 
 this money, there being no one else to lend him, he is driven to the 
 necessity of applying for it to a Putter (P41ghat Brahmin), the greedy 
 nature of whose disposition is beyond anything I ever knew or heard 
 of. That your Board may be able to form some idea of it, I shall 
 here beg leave to state the hardships to which a ryot borrowing money 
 from one of these Putters is frequently subjected. 
 
 " Let it be supposed that a ryot borrows from him 50 fanams at 
 the latter end of the year to purchase seed for sowing. The price of 
 batty (paddy) at this time is generally about 1\ parahs the fanam, at 
 which rate he will get 75 parahs. He then passes a note to the Putter 
 (who will not otherwise lend him a kaas) promising to return his 50 
 fanams within four months at 3 per cent, interest per mensem, in batty 
 on his reaping the first crop at the price at which it may be then 
 current. This current price is never less than 3 parahs, and sometimes 
 3^ and 4 parahs the fanam — let it be reckoned at 3. At the expira- 
 tion of the four months the loan of 50 fanams with interest will amount 
 to 58 fanams, the value of which in grain at 3 parahs the fanam will 
 be 174 parahs. The ryot at this period has to pay the Sircar revenue,
 
 cclxxvi 
 
 and is at the same time dunned by his Brahmin creditor whom the 
 proportion of the produce will not allow to satisfy in full. The Brah- 
 min, however, is content with receiving two-thirds of his grain, which 
 will be 116 parahs, and for the remaining one-third or 58 parahs he 
 will exact a new bond from the ryot (who will pass it to avoid a civil 
 prosecution with which his creditor threatens him) promising to pay 
 the value of the grain in a specified month at the latter end of the 
 season (with the same usurious interest as above said) in money at the 
 rate at which grain may be then selling. The price, as I have above 
 mentioned, is about 1^ parahs the fanam. Thus allowing six months' 
 interest, the sum to be paid in lieu of 58 parahs will amount to 47 
 fanams, so that in the course of about ten or twelve months, for the 
 loan of 50 fanams or 75 parahs of paddy, although the ryot has paid 
 116 parahs, he does not return his debt in a greater sum than 3 fanams 
 or 4^ parahs of paddy. Oases of this nature have come before me, 
 when the poor ryot has been driven to the extremity of distress, and at 
 last prosecuted with all the severity imaginable by his avaricious and 
 unrelenting creditor.'^ 
 
 The following particulars have been furnished by the Sub-Kegistrar 
 of Pdlghat as to the nature of usurious money-lending transactions 
 carried on by Moplahs at present : — 
 
 " Usurious transactions of the nature described by Mr. Warden 
 continue to be carried on in Pdlghat and some other parts of the 
 Malabar district. 
 
 " The people taking such loans are agriculturists of very small or 
 almost of no credit who eke out a struggling existence by cultivating 
 other peoples' lands for a season. Mr. Warden's account describes a 
 transaction from the beginning and traces it through two stages. The 
 documents now obtainable in regard to such transactions evidence only 
 a certain stage in the progress of the loan operation and the deficien- 
 cies in them have to be supplied by oral statements. Translations of 
 two subsisting bonds are appended ; of which one marked A evidences 
 a transaction entered into for the first time between the parties and 
 the other marked B relates to a loan in the second stage of its progress 
 and forms the note passed by the debtor to the creditor for the balance 
 found due after a settlement of the account in regard to a loan of 80 
 parahs of paddy made in Edavam (May- June) 1066. The loan in its 
 original stage is stated to have carried interest at 4 parahs for 10 
 parahs a year. In neither of the documents is seen any provision 
 made for interest after default of payment. In all such cases, however, 
 it is a recognized rule to get a stipulation made for the return of the 
 paddy in money when the price of paddy is at a maximum. (In 
 Pdlghat the price of paddy has in these two years ruled at a parah the 
 fanam in the harvest season ; and at the latter end it varied from 5f to 
 6j edangalies the fanam). " 
 
 A, — Document executed by A to B. I have this day borrowed 
 from you in cash Rs. 1 ; and I promise to pay for this amount 35 
 parahs of paddy within the 30th Tulam 1068 (November 1892), at a 
 parah the fanam ; and shall thereupon take back this document, dated 
 the 9th Mithunam, 1067 (July 1892),
 
 celxxvii 
 
 B. — Simple mortgage executed by A to B. — In settlement of 
 previous accounts you find myself indebted to you in 57 parahs 
 6 edangalies of paddy. This 57 parahs 6 edangalies of paddy I shall 
 return to you before the 30th of Vrischikam, 1068 (December 1892), 
 with interest at 5 parahs for every 10 parahs of paddy (i.e., 50 per 
 cent.) and shall take back this document, dated the 7th Mithunam, 
 1067 (14th July 1892). 
 
 " At Ottapdlam, a station on the Railway, the business is said to 
 be very briskly carried on by the Moplahs and the following case is 
 adduced in illustration of the terms of the business t — 
 
 " A ryot, in order to furnish himself with a stock of paddy for 
 paying the wages of his laborers, borrows of a Moplah in Mithunam 
 (June-July) 50 parahs of paddy which for the borrower is then priced 
 at Rs. 25, on the condition that wlien the first crop is harvested in 
 Kanni (September-October) he will repay the principal and the interest 
 at 2 per cent, per mensem in paddy at 4 edangalies in excess of the 
 market rate. Under the terms of this agreement, in Kanni, when 
 paddy sells at 12 edangalies the fanam, the borrower has to pay for 
 
 the 27 rupees which then becomes due, -.^^ ''^ or 151 parahs 2 edan- 
 galies of paddy. The borrower whose gross produce at the time is not 
 more than 250 parahs is not able to pay and the lender is not really 
 anxious to receive the whole amount of the debt. But the creditor 
 being the person to be on the spot first, and his demand being more 
 inperious than that of the landlord, the ryot gives him 100 parahs at 
 once and agrees to pay the remainder in money calculated on the price 
 that may be found to be current in the succeeding Dhanu when the 
 price of paddy rises to 8 edangalies the fanam. In Dhanu, thus, the 
 ryot finds himself indebted to the Moplah in — ^^ — or 64 fanams, 
 
 which is 18|- rupees. At that part of the year he has neither money 
 nor paddy with which to discharge the debt ; and he then makes a 
 third promise that for the 64 fanams he will give paddy on the har- 
 vesting of the Makaram crop when the price of paddy falls to a parah 
 the fanam. In Makaram the ryot's indebtedness amounts to 64 fanams 
 which he is unable to clear simultaneously with his paying his rent in 
 full. Being anxious to retain his land for the next year's cultivation, 
 he now desires to keep himself in the good graces of his Jenmi and so 
 hands over to him the greater portion of his produce. The land which 
 the ryot is assumed to cidtivate is capable of sowing 25 parahs and the 
 gross produce that the land brings in to him is estimated at 250+ 200 
 or 450 parahs. He has to pay as rent 200 parahs for the year. With 
 this produce he is unable to meet in full the demands of either the 
 Jenmi or the Moplah, and to both of them he finds himself indebted. 
 Supposing the ryot to conciliate the Moplah by paying him 32 parahs 
 at once and agreeing to pay money for the balance at 8 annas the parah 
 in Mesham, the result to the ryot is that after paying the Moplah 132 
 parahs for the original loan of 50 parahs, he finds his original debt 
 reduced at the end of the year by only 9 rupees. The Jenmi may 
 occasionally remit the balance, but the Moplah never does. 
 
 " The above account is given by one well acquainted with the place 
 and the people and vouched to be correct and represents transactions 
 of but a milder type."
 
 cclxxviii 
 
 (6) Extract from Buchanan's " Jomney through Mysore^ Canara 
 and Malabar, 1801." 
 
 The following is the account given by Dr. Buchanan as to the 
 terms on which advances were usually made by merchants on the sea 
 coast to ryots in the interior on account of commercial produce to be 
 delivered after harvest : — 
 
 *' Farmers of prudence and substance, such as the Moplahs mostly 
 are, receive no advances for pepper ; but when their pepper is fit for 
 market, sell it to the best advantange and deliver it at the seaport at 
 from E.S. 120 to Ks. 125 a candy of 640 lb. The case is, however, 
 different with most of the Hindus, who, in Malabar, are as remarkable 
 for a thoughtless profusion as in other parts they are penurious. 
 Between 12th of June and of 13th September, the Mussulman traders 
 come from the coast and enter into written engagements with those 
 who are willing to receive advances. The cultivators agree to deliver 
 a certain quantity of peper for which the trader pays down immedi- 
 ately from 13 to 15 fanams a tulam or from Rs. 65 to Es. 75 a candy. 
 Should the cultivator, at the crop season, be unable to deliver the 
 quantity for which he contracted, he must pay for the deficiency at the 
 market price, which is generally Rs. 120 to Rs. 125 a candy. As he 
 is seldom or never able to pay this in cash, he gives a note of hand, 
 engaging to deliver pepper for the amount of the price of the deficiency, 
 at the rate of 1 tulam for 13 to 15 fanams ; but no interest is charged. 
 Indeed the profits of the trader are immense ; as for an advance of 15 
 fanams for six months, he gets a profit of 10 ; and it is evident that 
 the risk is very small. Should a merchant not consent to receive the 
 pepper on account of its being bad, the cultivator may sell it to any 
 person that he pleases and give the proceeds to the merchant. Should 
 these not amount to the market price, he gives a note of hand for the 
 balance, which is considered as part of the advance for next year. It 
 is evident that the interest of the merchant is to keep up a high 
 nominal price, even should he, in selling the pepper to foreigners, be 
 obliged to allow a large discount ; for all the balances due by the 
 farmer are paid in, what is called, the market price. The present 
 market price is Rs. 125 a candy or £2-1-5 a cwt. It is sometimes as 
 low as Rs. 100, and at others rises to double that sum. 
 
 '' The cultivators, when questioned concerning the reason that can 
 induce them to take up money on terms so disadvantageous, attribute 
 it entirely to the land tax ; for every evil in Malabar is ascribed to 
 
 that as its source At length, I found that the real cause of ' 
 
 the Hindus disposing of their pepper at this low rate is a festival called 
 * Onam,' which is celebrated in the month of Singham. At this, the 
 Hindus expend in drinking and finery everything which they can 
 raise." 
 
 As regards the arrangements now usually entered into by mer- 
 chants with cultivators in regard to the delivery of commercial produce, 
 such as pepper, cocoanuts and coffee, the Registrar of the Tellioherry 
 district, in which these crops are extensively grown, reports as 
 follows : — 
 
 " About fifty years ago it was the practice for Moplahs on the sea 
 coast to go to the interior and advance money to tenants at Es. 60 or
 
 cclxxix 
 
 Rs. 70 a candy, when pepper was selling at Rs. 120 m the town. It is 
 also true that they were made to pay for the deficient quantity at the 
 market rate or to give a note of hand engaging to deliver pepper at the 
 next harvest for the amount settled at Rs. 60 or Rs. 70 a candy. This 
 mode of advance has become changed for various reasons. Formerly, 
 there were no cartable roads in the district and the facility of 
 communication between the coast, where the merchants generally lived, 
 and the interior, was wanting. Further, Moplah traders were not 
 many and money was also scarce. Now the state of things is quite the 
 reverse. As the advance of time has brought on so many changes, it 
 must have reacted on the old practice which was ruinous to tenants. 
 They have now grown more intelligent and dualized. They now 
 freely go to towns and learn the market price daily. The present 
 method of advance, as described below, must have been brought on by 
 natural course to suit the convenience of the purchaser and seller. It 
 is a well known fact that tenants in Malabar have no proprietary 
 right in the soil and cannot therefore give sufl&cient guarantee for the 
 money advanced. In cases of non-fulfilment of engagements, merchants 
 must have found considerable difficulty in recovering the amount. On 
 the other hand, tenants must also have seen their own ruin in such 
 bargains. 
 
 " I made careful enquiries among merchants who deal extensively 
 in pepper and coffee. They borrow large sums from the banks and 
 hand them to various middlemen (Moplahs generally) who live in the 
 interior and have moderate means. The rate of interest charged by 
 the bank is generally 12 per cent, per annum or even less. These 
 middlemen are charged at 24 per cent, by merchants and agree to give, 
 for principal and interest, pepper at market rates. They go to different 
 pepper gardens in their neighbourhood, estimate the crops on pepper 
 vines and purchase them for ready money from tenants who are in 
 need of it. Pepper is generally plucked from vines from 15th January 
 to loth February. One would be able to judge the quantity and 
 quality of the crop from September forward. The middlemen com- 
 mence to purchase the crop from August and September. The more 
 it grows to maturity the higher its price rises for two reasons. The 
 merchant has not much to lose in the shape of interest on the sum paid 
 beforehand. Secondly, he will be in a better position to see the state 
 of the crop. He is always shrewd enough not to lose and makes a net 
 profit of 20 per cent, on his borrowed capital in four or five months. 
 He, first of all, estimates the crop by edangalies (nearly equal to Madras 
 measures). For every 100 edangalies of undried pepper, he agrees to 
 pay Rs. 9 or Rs. 10. Seven hundred edangalies of undried pepper, if 
 dried, will be a little more or less than a candy, according to the quality 
 of the crop. He has to bear all charges for plucking and other 
 incidental expenses required for drying and taking it to the market. 
 The rate of purchasing raw pepper on the vines will vary according to 
 the nature of the market in seaport towns and the demand of wholesale 
 merchants. While petty merchants make a clear profit of not less than 
 20 per cent, on their outlay in five months, big merchants in the town 
 have a profit of 1 per cent, per mensem on their borrowed capital from 
 the bank. The middlemen, about the end of February, deliver pepper 
 to wholesale merchants for the amount borrowed and for its interest at
 
 cclxxx 
 
 24 per cent, at market rates. If they fail to do so, the contract is 
 enforced with a small additional amount calculated at a certain rate 
 per candy for the disappointment caused. Even the loss of 20 per 
 cent, on a sum expected in a few months is ruinous to a tenant. Why 
 he foregoes this amount will be explained further on. 
 
 " Coffee. — It should not be supposed that Europeans alone have coffee 
 gardens in Wynaad. Jenmies and small farmers rear coffee plants on 
 their parambas and waste lands according to their means and circvmi- 
 stances. The soil is virgin and fertile and the climate congenial to 
 their growth. The petty jenmies and tenants are in need of money 
 like those who farm pepper gardens at the foot of the hills. The 
 middlemen first estimate coffee crops and purchase them for a price 
 which would give them not less than 20 per cent, profit on their outlay. 
 The expenses of plucking, &c., are borne by them. The wholesale mer- 
 chants in the town purchase coffee for the market price, from petty 
 traders who have received advance, in adjustment of principal and 
 interest which is generally not less than 24 per cent. The processes of 
 purchasing and selling coffee are similar to those detailed above for 
 pepper. The above method is not applicable to European planters 
 who generally borrow large sums from the bank directly for expenses 
 of cultivation and for the payment of coolies in their gardens. 
 
 " Cocoanut. — The process is the same. But it is purchased by the 
 thousand. If 1,000 cocoanuts are expected to be sold at Es. 25 in 
 January, the pre-payment for the same quantity is Rs. 15 to Es. 17 in 
 September. In this case the petty traders' profit will be about 30 per 
 cent, on the outlay. Their risk is greater and they are almost entirely 
 at the mercy of the tenants who generally have nothing and often- 
 times not even the trees to pledge. Hence under this head advances 
 to tenants are not made for large sums. In cases of failure to fulfil 
 the engagement, legal steps are taken to enforce the contract according 
 to the penal rates stipulated therein. 
 
 " I do not mean to say that the old practice of advancing money on 
 pepper, coffee and cocoanuts has died out entirely. It has almost gone 
 out and there may be rare occurrences in the interior parts. By the 
 new method the connection between petty traders and tenants ceases 
 and is renewed annually. While the latter are not much harassed the 
 former do not lose their profit largely. It is found convenient to both 
 parties." 
 
 As to the question why small farmers and tenants receive advances 
 on crops on disadvantageous terms instead of harvesting the produce 
 and selling it on their own account when the price is high, the Regis- 
 trar remarks that the reason for this is not to be found in the heaviness 
 of the land tax or extravagant expenditure during the " Onam" feast as 
 suggested by Dr. Buchanan, but in the great poverty of the lower 
 classes of the cultivators due to the system of landholding under the 
 Marumakattayam law. It is not to the interest of the karnavan or 
 the head of a Malabar family who is uncontrolled in regard to the 
 disposal of the income of the property to invest money either on 
 improvements to property or in helping tenants with advances. The 
 tenants are, as a rule, rack-rented and have to pay heavy renewal fees 
 whenever kanom mortgages are renewed. The Nairs, as a class, do not 
 engage in trade which is almost entirely in the hands of the Moplahs,
 
 colxxxi 
 
 (7) Extract from a report on the indebtedness of the agricultural classes 
 furnished hy the Acting Registrar, South Arcot District. 
 
 1 . Rjots (or those that are engaged in agriculture) are divisible into 
 three classes ; farm servants, farmers and proprietors. The first class have 
 no credit except wdth their emploj-ers to a very limited extent. They 
 tUl the soil for the landlords either for monthly grain wages, for kalam 
 (that which is left in the threshing ground, after it is imperfectly 
 swept), partly for kalam and partly for grain wages, or for kalam and 
 a small share (of grain harvested). They can get advances from their 
 employers to the extent of the wages they are likely to earn in the 
 course of the year, or an advance for marriage of about Es. 20. This 
 latter sum is not repaid, nor is interest charged upon it, when the 
 servant leaves his masters' service. It is difficult to dismiss him with- 
 out forfeiting the advance unless the servant transfers his services to 
 another master in the same village, when, by mutual understanding 
 among the villagers, he is required and enabled to refund the sum 
 advanced. 
 
 The credit of the farmers is nearly co-extensive with their annual 
 profits and that of the proprietors with nearly 70 per cent, of the value 
 of their property. The so-called farmers are persons of very little 
 means, possessing only a paii' of cattle, a plough and a hut. Their extra- 
 ordinary expenses are generally defrayed from their savings. The 
 large borrowing class are all proprietors of land and their credit has 
 considerably improved during the last twenty years omng to the rise 
 of prices. In the sub-district of Panruti, and, I believe, also in the 
 whole district, the last class only are numerous. ..... 
 
 2. In the neighbourhood of Panruti, cumboo, paddy and ground- 
 nut are raised, the first two for home consumption, and the last almost 
 wholly for export. The money-lenders chiefly live at Pam'uti. They 
 make advances from time, to time, but, specially before the Kartiga 
 festival of Tiruvanndmalai, for buying cattle. The advances are in 
 small sums by account-current, but when they reach a respectable 
 figui'e, a stamped bond or mortgage-deed is obtained. The conditions 
 are that the advances should be repaid within a year or two ; that the 
 price should be the lowest prevailing at the commencement of the 
 harvest season ; and a highly penal rate of interest from 2 to 6 j per cent, 
 per mensum be paid for default. No interest is charged for repayments 
 in time. It is said that the penal interest is not always exacted, except 
 when the claim has to be enforced in a Court. This is the practice of 
 the petty, though numerous, class of money-lenders. Comparatively 
 large but temporary loans are also granted upon jewels, indigo, paddy, 
 &c. The rate of interest in these cases is between 6 and 12 per cent. 
 Loans on personal credit are allowed only to traders and to customers 
 of goods. No interest is charged on such loans so long as they remain 
 account debts. Larger proprietors make loans of grain to petty farmers 
 about July or so, repayable at the harvest time with profit or interest 
 at one-fourth of the principal. Allusion to this custom is found in the 
 reports of the Sub-Eegistrars of Chidambaram and Tindivanam, and 
 I also find it prevalent in the Chingleput district. Monej^ loans are 
 also granted upon, what is called, paddy interest, i,e.y at so many kalams
 
 cclxxxii 
 
 per Rs. 100, irrespective of tlie price of paddy at the time it is paid. 
 Compound interest is very unusual in any case. 
 
 3. Result of the system. — Much misapprehension prevails as to the 
 character of money-lenders or as to the result of borrowing. Human 
 nature is the same at all times and at aU places, and where there is a 
 difference it is wholly due to the influence to which it is subject. A 
 capitalist will willingly pay a premium to pm-chase a 4 per cent. 
 Government security ; but is very reluctant to lend money at 12 per 
 cent, to a near relation. He is not capricious and it will not be diflB- 
 cult to know his motive. The much-abused Marwadies risk their 
 money on personal credit, and interest cannot be the same where the 
 risks are not. Professional money-lenders have no longing for lands, 
 because their avocation is not agricultural. When they buy, they do 
 so against their will for want of other buyers, and sell them when they 
 can. The position of the agricultural borrowers has greatly improved 
 and that of the professional money-lenders has deteriorated during the 
 last quarter of a century. The value of money having fallen or that 
 of the agricultural produce risen, the money lent is returned when it is 
 not worth as much as when it was given. The value so far is trans- 
 ferred from the one class to the other .... * This will show that 
 the money-lender has been a blessing instead of a curse, and he has 
 been improving, unconciously though it be, the position of the agricul- 
 turists in his own district. I have experience of two or three districts, 
 and I am able to state that the improvement is marked and perceptible 
 to all unprejudiced observers. Nearly half of the huts that existed 
 twenty-five years ago have disappeared, and tiled houses have taken 
 their places. Houses which were tiled then have changed their 
 dimensions and appearance now. So in clothiag and other comforts. 
 Agriculturists have in their turn become money-lenders and have learnt 
 to dispense with the aid of the professional money-lenders to a very 
 great extent. The improvement in material prosperity can be easily 
 gauged by the fall in the interest, which was then 12 per cent, at least 
 (then called charitable or ^trLneuiLt^-)^ is now nearly 6 per cent. Time 
 has come when ryots are able to take advantage of any help that may 
 be rendered to them to organize a system of mutual credit on the lines 
 that will hereafter be explained. Farm servants are a diminishing class. 
 Their ambition is to become farmers. By getting a small loan for 
 purchasing one bullock or two, by industry and economy, they become 
 in time proprietors of a plough and a pair of cattle and are able to 
 maintain themselves independently. As farmers, they are able to repay 
 their loans which, as servants, they were not. By dint of exertion and 
 thrift, they are even able to purchase a small piece of land and attain 
 the status of proprietors. Rich landlords, on the other hand, have been 
 losing ground. The sons by partition get only a fraction of their 
 patrimony, while their family and expenditure are, in many cases, equal 
 to, or greater than, those of their parents. They involve themselves in 
 debt and have ultimately to part with their lands. They become poor 
 and by hard necessity imderstand their position and try to lift themselves 
 with those who were originally poor. The lands are passing from 
 
 * This seems to be too high an estimate.
 
 colxxxiii 
 
 them to vakils and Q-overnment officials. Of the four systems of credit 
 here alluded to, the result of lending money, at so much per cent., is 
 very advantageous to the borrower. Grain interest is demandable by 
 small capitalists who have to purchase paddy for their consumption . 
 It is generally favorable to the lender and is not had recourse to, except 
 in an emergency. Vasi or Nanji (the latter means one-fourth share), 
 apparently very disadvantageous to the borrower, is not really so. The 
 grain is advanced in June or July and is repaid in February or March. 
 The duration of the loan is about nine months and the interest, if the 
 value and condition of paddy be the same, is nearly 3 per cent. We 
 have, however, to allow for the difference in the price which itself is 
 sometimes nearly 25 per cent, in favour of the borrower. We have 
 also to allow for the dryage of the paddy at the time of repayment. 
 This comes to nearly 15 to 20 per cent.* The ryots prefer this kind of 
 payment to money payment. The only advantage to the lender is that 
 there is no excuse for putting off the payment when the harvest is 
 realized. 
 
 " Repayment in kind^ at the time of harvest without interest, is 
 apparently advantageous to the ryot and sometimes is really so. He 
 gets as much for his grain as he would otherwise have if he sold the 
 crops when they are gathered. His gain consists in the interest on the 
 money borrowed for the period between the date of the loan and that 
 of the harvest. In consideration of this, he has to abstain from sell- 
 ing his grain to others and from selling it at a time when it would 
 fetch the best price. Taking into account his necessitous condition, the 
 sacrifice is nominal. The lenders can buy paddy at the time of the 
 harvest and pocket the difference if they can. That they are not able 
 to do so indicates the real position. The lenders have to pay simply to 
 purchase a custom and this is no doubt proof that the ryots are able to 
 dictate their own terms and money is easy."t 
 
 {8) Tenant right in Java : extracted from an article from one of the 
 English Newspapers quoted in the ^^ Indian Economist,^' 1870. 
 
 " W^e can very well understand the excitement created in Holland 
 by the passing of the Agrarian Bill for the Dutch Indian possessions ; 
 and there can be little doubt its conservative opponents are right 
 in proclaiming it the precursor of a social revolution. It seems to 
 decide the question, which has been so long and hotly debated in the 
 Parliament at the Hague and signs the death-warrant of the Dutch 
 Colonial System. Independently of the radical changes introduced in 
 that system by the bill, the very fact of foreign witnesses being invited 
 behind the scenes — of the working of Dutch Colonial policy being laid 
 bare to public opinion — seems to make the inevitable revolution in it 
 merely a question of time. That that revolution must have come 
 sooner or later was certain. Its advocates had all the arguments 
 
 * This seems to be too high an estimate. 
 
 t This is somewhat too broadly stated. It is necessity that makes ryots part with 
 their grain soon after harvest and the lenders make a profit out of this. The ryota 
 in general, however, are now better able to hold out for a price than they were before.
 
 oolxxxiv 
 
 on their side except utilitarian ones. The telling and hitherto' conclu- 
 sive reply of their opponents has been that their present system 
 pays and pays enormously. Not only is there no difficulty whatever in 
 establishing an equilibrium in Javanese budgets, but Javanese labour 
 and taxation contribute immediately to the home treasury. Now the 
 new measure not merely introduces the wedge — that was done some time 
 ago, when free labour was admitted on the new railway works, — but 
 drives it home into the very roots of the system ; one or two blows more 
 must follow in local sequence and it will be rent into fragments. The 
 two leading features of the Dutch system are the ownership by the 
 State of all the lands in the island, and forced labour. With regard to 
 the former, the Dutch, on their occupation, found the native princes 
 enjoying all over the soil of their dominions what resembled much 
 more nearly actual ownership than a bai'e feudal superiority. Stepping 
 into their places and rights, they pensioned these local magnates, and 
 governed or oppressed from behind their names. The Dutch Resident 
 drew the lion's share of the gains : the native prince had a handsome 
 commission and the whole unpopularity for his share. If he were slack 
 in turning the screw, he abdicated under pressure in favour of some 
 member of his family, with an hereditary claim equally unimpeach- 
 able with his own. All the island is administered on this footing, 
 with the exception of a couple of quasi-independant states, ruled by 
 puppets under the eyes of a Dutch garrison. The whole population 
 is not only bound down to the soil, but limited rigorously as to the 
 productions to be raised upon it. Over certain districts the cultivator 
 cannot exercise his discretion, but must satisfy Government inspectors 
 on their periodical visits that he grows a certain number of trees of a 
 certain kind. His produce is brought into Government markets, and 
 bought at Government prices, and the margin between the sums it 
 fetches in Java and at Amsterdam is always great and often fabulous. 
 Then, in one form or another, Javanese labour is absolutely at the 
 service of the State, and the marvellous prosperity of the island — 
 regarding the matter from a Dutch, not a Javanese, point of view-p- 
 dates from the impulse given to this principle by General Yanden 
 Bocsh. Be it observed, it is a system highly practical and profitable, 
 but essentially vicious ; and, with this radical defect in it, that if 
 you once subject it to criticism you invite its condemnation in all its 
 parts. Modification can only lead on to annihilation. We presume 
 the party who has canied the measure in the House will have the 
 power and the will to see that it is carried out in the colonies, although 
 we may well imagine the local officials will offer it all the opposition 
 they dare. It is not pleasant seeing nearly absolute power tempered 
 down to constitutional authority, the rich salaries and allowances pass- 
 ing into the crucible of reform. A paradise as the island is, in some 
 ways, it wants strong counter-inducements to the climate to make life 
 in Java an enviable thing ; and if the Dutch residents have had to 
 work and think, and turn night to day, hitherto at least they have 
 lived in the license and luxury of Oriental despots, and enjoyed the 
 sla\'ish reverence of their subjects. Now if the revenues dwindle to or 
 below the point at which they stood before Vanden Bocsh set to work 
 on them with his rough and ready finance system, officials will find 
 themselves the victims of their economical home Government ; and,
 
 oolxxxv 
 
 moreover, the proposed changes will probably suggest a very material 
 reduction in their numbers. 
 
 " Article 62 provides that land leases may be granted for periods 
 not exceeding 75 years. It invites, in fact, to the immigration and 
 colonization which for so long have been studiously discouraged. It 
 assures extreme hxity of tenure, and offers every facility for con- 
 verting occupation into permanent property. It admits and confirms 
 the strange principle of native ownership, and permits, under certain 
 restrictions, that land shall vest in foreigners, or be rented by them. 
 Holland, in short, throws open to all the world the ricli garden she has 
 hitherto made a close monopoly of, and renounces the right of the crown 
 — a right at once shadowy and substantial — to all the lands cultivated 
 by the natives. There can be no doubt the conservatives are right in 
 saying it will annihilate the present system of cultivation, and it will be 
 hopeless to think of maintaining the Government monopoly of markets. 
 No European colonist would dream of farming, subject to the condition 
 that some three- fourths of his fair profits should become legally the 
 property of the State — that he should have to sell for half a dollar in . 
 Java what the telegraph informed him was selling for foiu' in Holland. 
 And although the natives have hitherto been treated and have regarded 
 themselves as an inferior caste, it would be impossible to attempt to 
 make distinctions on a point on which they are sure to be so sensitive 
 as the pocket. The Government system must go, and with it the 
 Government profits. How far land leases and taxation may replace 
 them is another question, and one that, when we contrast results from 
 the British and the Dutch Indies, cannot be answered \ery hopefully 
 for the Dutch treasury. We are told the Dutch conservatives are 
 uneasy as to the advent of English adventurers and its consequences. 
 We have no doubt the restrictions referred to have been naturally 
 arranged so as to impose some check on that. It would be contrary to 
 human nature, and to. Dutch nature especially, to suppose that all of a 
 sudden they should push free-trade and self-aWegation to sentimental 
 lengths. But, in any case, of all the climates in the East, the climate 
 of Java is among the most trying to Europeans ; and that consideration 
 alonp, we should fancy, would operate against any such influx as the 
 Dutch affect to apprehend. That the bill will endanger their hold on 
 their colonies we do not believe. On the contrary a weak State always 
 does wisely to shelter itself behind ' the principles of eternal justice ;' 
 and daring filibusterers, or even acquisitive Governments, have lost an 
 excellent chance of having public opinion in their favour in a crusade 
 against the task-master of tlie Malay race. And "for Malays, when the 
 islands have ceased to be closed colonies, the Dutch may venture to 
 turn their tardy attention to raising their Eastern subjects in the social 
 scale. Hitherto they have not merely been neglected, but degraded as 
 a matter of policy ; for an enlightenment among the population was 
 absolutely incompatible with the system of serfdom and corvee on 
 which they were governed. It is impossible to deny that Holland may 
 have legislated away her splendid colonies' income ; but we have every 
 reason to believe she has strengthened her hold on her colonies. Better 
 perpetuate a connection that must always be profitable than continue a 
 scandal of civilization, and gains as insecure and uncertain as great 
 speculative profits generally are. [The truth seems to be that the
 
 oolxxxvi 
 
 system of semi-slasrery has broken down and that a change is absolutely 
 necessary. Why should the Dutch fear an influx of English planters ? 
 They would soon make the mountains of Java what the mountains 
 of deylon are, to the detriment not of the Dntch but English Colony]/' 
 
 (9) Description of a Swiss Land Credit Banlc. 
 
 An extract from a paper reid to the Statistical and Social Inquiry Society of 
 Ireland, hy Mr. M. O^Brien, i^rinted as Appendix A to the Third Report of 
 the Royal Commission to inquire into the depression of Trade and Industry 
 (1886). 
 
 The demand for legislation to facilitate the lending of public money 
 on small plots of land in Ireland makes a description of the constitution 
 and operation of a Continental Land Credit Bank of some interest. 
 
 Mr. H. D. MacLeod, in his lectures on credit and banking, says — 
 ' ' Many banks in Central Europe have been founded for the purpose of 
 making advances to cultivate land, and a very large portion of the advance 
 in agriculture during the last 130 years has been due to them." 
 
 The provisions of the French Civil Code, the principles of which 
 have been adopted in many other countries, make land a suitable 
 security for bankers' loans, which it is not under English law. 
 
 In the report of the Eoyal Commission of 1857 on registration of 
 titles, the following sentence (p. 46) occurs, and is applicable to land as 
 banking security : — 
 
 " It has been well said that the greatest condemnation of the existing 
 system of lending money on land is the reluctance which bankers, the natural 
 traders in loans, have to lend on mortgage or judgment. The security which 
 they refuse, careless trustees, ignorant people who have savings, and widows 
 and others who have, some small provision, are advised to accept, and in 
 this way the whole risk of bad security is thrown on the classes least able to 
 bear it." 
 
 The Land Credit Bank of the State of Vaud {Caisse hypothecaire can- 
 tonate, Vaudoise) was established for the purpose of granting advances 
 on the security of real property to the agricultural classes. As the 
 entire canton is owned and occupied in very small parcels, the advan- 
 tages of the bank extended to the whole community. The control and 
 management of the bank is in the hands of the following three 
 bodies : — 
 
 (1) A council of 20, of whom 10 members are named by the 
 
 executive government and 10 are elected by the bank 
 shareholders with a President, who must be a member of 
 the G-overnment ; the council meets at least once in six 
 months. 
 
 (2) A committee of supervision, consisting of the President of 
 
 council, and 4 members named by the council, meeting 
 at least twice a month. 
 
 (3) A directorate, consisting of a chief director^ 2 managers, 
 
 and 2 assistants ; they meet at the chief office at least 
 three times a week, and must not be related to each other. 
 The Secretary of the bank is selected by the Grovernment 
 from among the permanent officials of the State.
 
 cclxxxvii 
 
 The following figures are taken from the report of the bank for the 
 year ending 31st December 1883, and are given in round numbers : — 
 
 The resources of the bank consisted of — 
 
 £ 
 
 (1) Paid up capital in £20 shares (the State must be 
 
 the proprietor at least of 1,000 shares) 380,000 
 
 (2) The funds obtained by the issue of debentures 
 
 in amounts of £20, £40 and £200 ... ■ ... 790,000 
 
 (3) The funds of the State Savings Bank, on which 4 
 
 per cent, interest is guaranteed 835,000 
 
 (4) Sundry convertible securities, cash, &c. ... ... 80,000 
 
 According to the constitution of bank, loans can only be made on 
 real or quasi-veal property, and by preference on agricultural and pas- 
 toral properties. The following classes of loans are made : — 
 
 (1) On real estate, for terms varying from 9 to 53 years, repay- 
 
 able by a sinking fund, varying according to the term, 
 from 10 per cent, to ^ per cent., the interest being calcu- 
 lated at 4| per cent. 
 
 (2) On real estate for not less than five years ; but without 
 
 sinking fund repayment ; at the expiration of this time 
 repayment cannot be required unless a year's notice has 
 been given. 
 
 (3) On assignment^ of mortgage debts and deposit of the bankers 
 
 own debentures. 
 
 During 1883, 4| per cent, interest was charged on loans with a com- 
 mission of from i to J per cent. ; £12 is the smallest amount lent. 
 
 Four per cent, is paid, the debentures issued and outstanding deben- 
 tures issued at 4J and 4^ per cent, are being paid off. 
 
 At the ending of 1883, the bank had 17,533 debentures of the 
 aggregate value of £790,000 in circulation, and had 9,087 loans out- 
 standing of the aggregate value of £1,899,400. 
 
 During 1883 its chief operations were the issue of 1^026 new loans 
 amounting to £219,500 ; and the cancelling of loans repaid amounting 
 to £162,183, the issue of 1,264 new debentm-es at 4 per cent., and 
 the paying off of 588 4 J and 4^ per cent, debentui-es of the value of 
 £39,700. It had property of the value of £60,000 in liquidation, and 
 during the year had disposed of £18,880 worth of these estates. The 
 realization of such property is, the directors report, the most difficult 
 part of their work, requiring great care and watchfulness of the market, 
 lest by too many sales in any locality they should increase the depres- 
 sion which had now for some years prevailed in the market for land. 
 
 The bank pays 4 per cent, for the Savings Bank funds ; a trifle 
 over 4 per cent, on the whole on its debentures and 4 per cent, on its 
 paid up shares ; after providing for these fixed charges, three-fifth of 
 the net profit is divided among the shareholders, and the remaining 
 two-fifth between the bank's officers and the reserve funds. 
 
 For 1883 the bank had a net profit of £7,304, which was disposed 
 of in the following manner : —
 
 cclxxxviii 
 
 One per cent, to the holders in addition to the £ 
 
 fixed interest of 4 per cent. . . . . . . 3,800 
 
 To the reserve fund . . . . , , , 1,638 
 
 To a special reserve for depreciation of property 
 
 in liquidation , . . . . . . . , . 1,200 
 
 Bonus to the bank officers ^ . .. , . 620 
 
 Carried forward . . . . . . . . . . 46 
 
 Total .. 7,304 
 
 Management expenses amounted to £2,500, taxes and sundries to 
 £1,100. 
 
 In round numbers the bank handles about £2,000,000, and on this 
 sum earns about 10.s\ per £100, The shareholders are content with the 
 modest return of 5 per cent. The business can scarcely be called very 
 remunerative, but is ke-pi up for the public convenience by the counte- 
 nance of the State, its credit, and partial guarantee, and by special laws 
 to facilitate operations. The receivers of taxes throughout the canton 
 act as agents for the bank and the Savings Bank. 
 
 Even the modest return of 5 per cent.- could not be earned were 
 it not for the facility and certainty with which loans can be charged 
 upon land. Imagine the Solicitor of an English county making 1,000 
 investigations of title each year and the cost of such investigations and 
 of the mortgage-deeds in case the loans were made. 
 
 The term " mortgage " is not properly applicable to loans secured 
 upon land under the system prevailing in countries subject to the 
 principles of French Civil Code, for the legal estate in the land is not 
 conveyed to the lender as under the English system ; but as the word 
 "mortgage" and hyjiotheque are almost exclusively used in connection 
 with loans upon real property, it is convenient to treat them as equiva- 
 lent, although the legal ideas underlying the two words are different. 
 The description given by Mi*. Jenkins, Assistant Agricultural Commis- 
 sioner, of the system of transfer and mortgage in France, Belgium, the 
 ISIetherlands and Denmark is equally applicable to most of Switzerland. 
 
 " The transfer of landed property is done by means of a system of book- 
 keeping, coupled with an official map on which every plot of land is marked 
 and numbered ; a registration office exists in each district ; and an intending 
 purchaser can ascertain in a short time the official acreage of any particular 
 field ; the name of the registered owner, the amount and nature of any 
 mortgage or other charges upon it. No transaction connected with the land 
 is authentic (in other words legally execiited) unless it is duly registered at 
 the district office. The proceeding is perfectly simple and effective." 
 
 In Yaud the following books are kept for each commune in connec- 
 tion with the official maps : — 
 
 (1) A register of parcels (registre Fonder). 
 
 (2) A register of owners and their properties {registre cadastrale 
 
 or cadaHtre), 
 
 (3) A register of loans of land {controle des hypotheques). 
 
 (4) A register of rights, easements, temporary interests {controle 
 
 des charges immohiUeres).
 
 colxxxix 
 
 If an owner wishes to borrow, say, 100 francs or £40, and charge 
 his property mth that amount, he furnishes with his application to the 
 bank his title, consisting of an extract from the Cadastre, and certificate 
 endorsed thereon by the Registrar of Loans and Charges. .The expense 
 of obtaining this would not usually exceed 2s. The loan having been 
 agreed to, an acte would be drawn by a Notary for 5 francs to the effect 
 that the borrower admits his liability, and charges his land with the 
 amount in favour of the lender. This is represented to the Registrar, 
 and the charge recorded against for a fee of from Is'. to 2«. The charge 
 can be fully or partially erased when paid off in full or in part or can 
 be assigned to a person for similar trifling fees. 
 
 Special laws, in addition to Vaudois Civil Code, have been recently 
 passed in order to facilitate the obtaining of loans on land, and in these 
 laws the interests of borrowers have been preferred to those of lenders. 
 
 The preamble of a law {Loi concernante I'obligation hypothecaire d 
 terme) passed in 1874 recites that the wants of the country require that 
 greater facilities should be given for obtaining loans upon land, and this 
 law legalized a new and special form of hypotlieque for a term of years 
 not less than five. At the expiration of this term, or at any subsequent 
 period, the lender cannot require repayment, except after a year's 
 notice ; the borrower may pay off the loan or any part, being not less 
 than one-third of the original loan, on giving three- months' notice. 
 Instead of making repayment when legally demanded, the debtor may 
 require the creditor to assign his right of action to any other person 
 who may be willing to take it up. These loans may be paid ofi' by 
 a sii^king fund not exceeding 10 per cent, annually on the loan. 
 
 The 16th section of this law promised the establishment of a Land 
 Credit Fund, and, in fulfilment of this promise, a special decree reorgan- 
 ized a previously existing loan fund and constituted the present Land 
 Credit Bank. 
 
 The bank is restricted to make loans on real estate, preference is to 
 be given to, and the greater part of the bank's resources lent on, rural 
 and agricultural properties. Loans must not be made for more than 
 two-thirds of the capital value of vineyard land, where the growing 
 vines constitute a considerable portion of the value, and are capable of 
 removal or deterioration ; in other cases three-fourths value may be lent. 
 In case of unpunctual payment, interest at the rate of 6 per cent, is 
 charged on the overdue annuity. 
 
 The general council of the bank, on which the executive govern- 
 ment has a preponderating influence, is charged with the duty of laying 
 down each year the general lines on which business is to be carried on, 
 fixing the rates of interest and providing that the greater part of the 
 loans shall be made on rural properties and repayable on the sinking 
 fund system. 
 
 The land debenture {obligation fonciere) is one of the chief instru- 
 ments used by these land credit banks, and the Yaudois Bank derives 
 nearly half of its resources from the issue of these debentures in ex- 
 change for deposits. They are issued in amounts of £20, £40, and 
 £200, with' interest coupons attached, payable to particular persons and 
 transferable by endorsement or payable to bearer and transferable by 
 
 og
 
 ccxo 
 
 delivery ; they are repayable at par after three years on three riionths' 
 notice being given to the holder. 
 
 They are recommended as safe and suitable investment for persons 
 of small means, municipalities and friendly societies. The law permits 
 trust moneys to be invested in them, without application to any legal 
 tribunal. The security for these debentures is the whole amount of 
 property mortgaged to the bank and the paid-up share capital of the 
 bank on which the State guarantees 4 per cent, interest. The numer- 
 ous mortgage debts of various amounts due to the bank, and each 
 secured on a certain special property are, as it were, converted into 
 stock and issued in amounts found to suit the convenience of the public. 
 
 The whole amount of the bank's transactions may seem small ; but 
 it is to be remembered that its operations are confined to a district and 
 population which are not as large as some counties in Ireland. The 
 county of Antrim, exclusive of the borough of Belfast, is about the 
 same size and has about the same population as Canton de Vaud. 
 
 The success of this bank earning for its shareholders the modest 
 dividend of 5 per cent, is due to the countenance and guarantee of the 
 State not so much as to the system of land transfer and registration of 
 charges, without which its operations could not be carried on at all. 
 
 The effect of the State aid extends its operations and keeps the rate 
 of interest charged somewhat lower than it otherwise would be. The 
 State aid would be of little avail if the general law was not adapted to 
 the needs of the country, making transfer and registration charges so 
 easy, that price of the land is quoted by the yards and sales are rnade 
 with quite as much facility and with same certainty as to costs as sales 
 of shares and stock in this country. 
 
 Transfer of land by deed in comparison with transfer on the record 
 of title system seems as antiquated and cumbrous as the use of metal in 
 bulk in place of coin. In the one case the metal must be assayed and 
 weighed at every transfer ; in the other its quality and weight are 
 known at sight. 
 
 Under a perfected system of recording titles it is seldom that the 
 title cannot be kept written up. Its state and ownership can be ascer- 
 tained at a glance, and a legal certificate can be obtained in a few minutes. 
 The delays and uncertainty of the other system are only too familiar to 
 persons in this country who have had dealings with lands. 
 
 Another Swiss Land Credit Bank, the " Banque Fonciere de Jura,^' 
 without any State aid or guarantee, also pays 5 per cent, on its paid-up 
 capital. Its head-quarters are at Delemont, the most prosperous part 
 of the Canton of Berne. This Bank, however, charges from 4f to 5 
 per cent, for most of its loans and pays from 4j to 4^ on all its deben- 
 tures. Money is obtained on its debentures so easily that it has 
 abandoned a contemplated increase of its paid-up capital. In their 
 report for 1883, the directors say that the interest and annuities due 
 have been satisfactorily paid and that notwithstanding the great depre- 
 ciation in the value of land, not only in the Jura, but throughout the 
 whole of Switzerland and adjoining countries, they have been enabled 
 to sell properties on their hands without loss and sometimes at a profit. 
 
 Mr. H. D. MacLeod, in his Lectures on Credit and Banking, claims 
 for the system of cash credits, as practised in Scotland, similar advan-
 
 COXOl 
 
 tages to those of the Continental Land Credit Banks. There is, how- 
 ever, a very great difference, wh'ch is duo to tlie superior system of 
 transfer and mortgage under the Continental codes of law. The 
 " Cash credit " is given on personal security and for a short term. In 
 the case of the Continental hi/potheque the land is the security ; the 
 loans can be made for long terras and at a lower rate of interest. 
 
 Although 5 per cent, may appear to be a very small return for a 
 banking business as compared with the earnings of English and Irish 
 banks, it is in reality a very good return for an investment on the secu- 
 rity of real estate, and must be considered in this light when contrasted 
 with earnings of a speculative business, such as an ordinary bank. 
 
 Mr. Thorold Rogers says it has been estimated that conveyance of 
 real estate in the United Kingdom is mulcted in law charges, exclusive 
 of taxes, to the extent of £12,000, 'JOU annually : — 
 
 " Such charges are not only a present loss, but the sj'stem under which 
 they are permitted bi'ings about and perpetuates an insecurity Irom which 
 properly registered titles would be free." 
 
 Whether the estimate of £12,000,000 be correct or not, there can be 
 no doubt that the legal charges on the conveyancing and charging of 
 lands are enormous, not in proportion to the work done, for the evil con- 
 sists in there being so much work, such cumbrous method of performing 
 what might be done, and what is done in other countries, so much more 
 simply, certainly, expeditiously and cheaply. 
 
 The repr^rted failures of the many attempts at reform in Ireland by 
 means of " purchase clauses '^ may not be considered universally due 
 to the want of a simple system of transfer and charging. 'J'ransfer of 
 land ownership from one class to another may be elfected on a large 
 scale by a liberal system of State loans ; but it is essential to the success 
 of the system sought to be established thnt the laws relating to transfer 
 and loans on lands should be radically changed. Under those at present 
 in force, loans of small amounts on land are unsafe ; they are made on 
 a bad security, no matter how much the value of the land may exceed 
 the amoant of the loan, for the security can neither be sold or charged, 
 nor can loans be recovered without delay, and great and uncertain 
 expense. 
 
 (D). — Decay of Domestic Industries, Absence of Diveesity of 
 
 Occupations, &c. 
 
 (1) Extracts from a Eepli/ published in tlie Madras Mail of Ihe 7th and 
 9t/i febrnary 1893, to cert'un criticisms contained in an article 
 published in the CalcutXiA Revip:w for January 1893, headed 
 " Agricultural History in Madras, and What it teaches us" 
 
 I. Why was a period of 40 years tali-en for gauging the progress 
 made ? — The reviewer sees some deep design on the part of Lord 
 Connemara in having proposed that a memorandum should be pre- 
 pared famishing materials for forming a judgment as to the results 
 of the last 40 years of British administration on the economic condi- 
 tion of the Presidency. The reviewer agrees with me, however, in
 
 ccxeu 
 
 tliinking that " there can be no two opinions as to the ver^ great 
 advance made by the country " during this period, but supposes that 
 no one in his senses ever asserted the contrary. To this it is perhaps 
 sufficient to reply that there are persons — intelligent and well-meaning 
 persons too — who, mainly because they have not had facilities for 
 studying the question in all its details, have asserted the contrary for 
 the last 20 years and more ; and an inquiry as to whether there is 
 any, and, if so, what truth in their statements is by no means super- 
 fluous. The reviewer's idea is that, having regard to the effects of 
 improved and cheaper internal and external communications which 
 should have stimulated enormously its greatest industry, viz., agricul- 
 ture, a much shorter period should have been taken for review, and 
 that no more suitable period could be found than the last 20 
 years. It is, of course, easy to object to any period that might be 
 taken, either on the ground that it is too long or too short ; but the 
 reasons for taking a period of 40 years are sufficiently obvious. For 
 one thing, a period of 20 years is far too short to gauge the effects 
 of economic forces in operation, of new laws, institutions, methods of 
 Government and administrative measures in any country, and it is 
 emphatically so in a country in which a great famine occurs once in 
 1 00 yearSj and scarcities of greater or less intensity every 12 years 
 or so, and in which the institutions and the habits of the people change 
 slowly. The reviewer admits that the disastrous famine that occurred 
 7 years after the commencement of the period which he contends 
 should have been taken for review was the severest known during the 
 present century, that it threw back the Presidency " to an enormous 
 extent," and that such a visitation is not ascribable to the defects 
 of British administration. Barely 13 years have passed since this 
 catastrophe occurred, and it would clearly be absurd to select this 
 period specially for gauging the effects of British rule on the condition 
 of the population. The middle of the century, on the other hand, is a 
 suitable starting point in every way for the pm*poses of a comparison 
 such as that proposed to be instituted. During the first quarter of the 
 century the efforts of the British Grovernment were directed towards 
 introducing order and tranquillity in the territories newly acquired and 
 in carrying out land settlements. The second quarter witnessed the 
 acute agricultural depression, — due, in the main, to the substitution of 
 a regime of cash payments for one of barter and the insufficiency of the 
 currency to meet requirements under the altered condition of things, — 
 the effects of which I have endeavoured to describe in the Memoran- 
 dum. The East India Company was at its wit's end to find the where- 
 withal to carry on the administration of the country and the wars 
 which were undertaken under the pressure of necessity or otherwise for 
 the consolidation of the Empire ; the initiation of improvements on an 
 extensive scale during this period was, therefore, out of the question. 
 It was about 1850, then, that almost every species of reform and 
 improvement had its commencement — the construction of railways, 
 roads, anicuts and canals, the establishment of schools and Universities, 
 the constitution of Legislative Councils and the enactment of Codes of 
 Laws, the reorganisation of the Police and the Magistracy, the revision 
 of revenue establishments, the abolition of restrictions on trade, the 
 settlement of lands held on favorable terms but uncertain or doubtful 
 titles, the alleviation of burdens on land, and a host of other reforms ;
 
 ccxeiu 
 
 and within 8 years after the commencement of this period the 
 direct Government of the ; Indian Empire was transferred fi-om the 
 East India Company to the Crown. The gold discoveries in California 
 and Australia, of com^se, made the carrying out of these reforms pos- 
 sible, by stimulating foreign trade, causing an influx of the precious 
 metals, and replenishing an insufficient currency. From 1850 to 1870 
 under the stimulus of the exceptionally high prices of commodities 
 which ruled, the causes of which I have explained in my Memorandum, 
 there was enormous expansion of cultivation and trade, and the period 
 was one of unexampled, if inflated, prosperity. After 1870 prices 
 suddenly fell and gave a check to cultivation, and the famine that 
 followed was one of appalling severity and strained the resources of 
 the country to the utmost. From a national point of view, the first 
 period comprised the " fat '' years and the second the " lean " ones, 
 and in a country where the " fat " and " lean " years come in almost 
 regular succession, the proper method to adopt in estimating the 
 normal advance made is not to take either period by itself,^but to take 
 the combined period as a whole. This is what I have done! 
 
 II. Rerieicer's analysis of the statistics of the acreage of holdings. — The 
 reviewer's procedure in taking a period of 20 years for gauging 
 the general advance made by the country under British administra- 
 tion is about as reasonable as the conduct of a man who, to estimate 
 the advance in general health made under a course of hygienic treat- 
 ment by a patient subject to periodical attacks of fever which occasion- 
 ally assumes a malignant form, compares the state of his health when 
 it was at its best with the state at which it is a short time after he has 
 suffered from one of the most malignant of such attacks. For the 
 more limited purpose of finding out how far the country has, under the 
 impetus given by good administration, been enabled to recover from 
 the disastrous effects of the late famine, a comparison for a shorter 
 period would doubtless be legitimate, but in that case the period 
 taken should not be the last 20 but the last 10 years. If such a 
 comparison be made, it will be found that the country is rapidly 
 recovering from the effects of the late famine. In 1875 the ryotwar 
 holdings amounted to 20 [million acres, of which IG-J millions con- 
 sisted of unirrigated and 3'7 millions of irrigated land. The famine 
 which commenced in 1876 lasted till 1878, while its immediate after- 
 effects continued do^vn to 1882. By 1882, the accounts were cleared 
 of holdings which had been entered in the names of ryots who had 
 deserted or died, and the total area was reduced to 18*8 millions of 
 acres, of which 15 millions of acres consisted of lands classed as unirri- 
 gated and 3"8 millions of lands classed as irrigated. In 1890, the 
 acreage of holdings had increased to 21 millions — 16"9 millions of 
 unirrigated land and 4"1 millions of irrigated land. The advance 
 made in 8 years was ir7 per cent. — 12'6 per cent, in unirrigated 
 and 8 per cent, in irrigated land. These figures have doubtless to be 
 discoiinted on account of excess of area found in holdings over and 
 above the area entered in the revenue accounts according to the old 
 measurements in districts resurveyed subsequent to 1882 ; but this 
 excess area is very small. The only districts in which the new survey 
 areas were introduced between 1882 and 1890 were portions of Cud- 
 dapah, South Arcot, Madura and Ganjdm, the Wynaad and the whole 
 of the North Arcot district except one taluk, and Vizagapatam.
 
 CCXCIV 
 
 I have not with me ready to hand exact statistics showing the 
 excess area discovered by remeasurement in the tracts, but there can 
 be no doubt that it cannot exceed 300,000 acres, or about one-seventh 
 of the increase in the area of holdings. Against this has to be set off 
 the extent of lands cultivated but not included under holdings for 
 various reasons ; the excess of such cultivation in 181)0 over 1882 in 
 the 7 districts greatly affected by the famine was 240,000 acres, or 
 300,000 acres for the whole Presidency. The increase of population 
 during the 8 years at the rate of lo per cent, per annum was 12 
 per cent., and taking the yield of irrigated lands to be between four 
 and five times that of unirrigated lands on an average, the increase in 
 production as measured by the area of holdings has proceeded, so far, 
 as fast as the increase in population. In the Kistna and the Goddvari 
 deltas there was an increase of nearly 250,000 acres, or 30 per cent., 
 in the area irrigated both in Grovernment taluks and zemindari tracts, 
 during the last 8 years, and this means an enormous addition to the 
 food production of the country. 
 
 The same result is arrived at by an examination of the statistics 
 returned of acreage actually cultivated. In 1882 the area of unirrigated 
 cultivation was 12'3 million acres, of irrigated cultivation 3*5 million 
 acres — total 15 '8 million acres. For 1890, the figures were 14 million 
 acres unirrigated, 3"9 millions irrigated — total 17'9 million acres. The 
 increase in 8 years was 13*8 per cent, in unirrigated, and 11 per cent, 
 in irrigated cultivation, subject to the allowance already referred to on 
 account of the excess area found on remeasurement. There is, how- 
 ever, a large exfent of cultivation not brought to account in the register 
 of holdings, and the acreage of this cultivation has increased in later 
 years. There is, besides, extension of second crop cultivation and of 
 cultivation with the aid of well irrigation to be taken into account. It 
 most further be remembered that daring the period in question tbe 
 taking up of poor lands thrown out of occupation during the late 
 famine has been discouraged in two ways, viz., first by the imposition 
 of substantial assessments on the lowest class of lands instead of the 
 nominal pepper-corn assessments that used to be levied under the old 
 settlements ; and, secondly, the large extent of lands taken up by the 
 Forest Department for fuel and fodder reserves. About 200,000 acres 
 were taken up in the Bellary and Anantapur districts alone. Large 
 extents of lands have similarly been reserved in other districts. 
 
 Apart from the cardinal objeotion already stated to comparing 
 the statistics of holdings in 1890 with those of 1870, the revieAver has 
 overlooked many important considerations and committed several errors 
 in carrying out his analysis. Taking the Presidency as a whole, with 
 the exception of South Oanara, the nominal area of ryotwar holdings, 
 as shown in the accounts, increased from 19*6 millions of acres in 1870 
 to 21 millions of acres in 1890, i.e., 7 per cent, (not 12 per cent, as 
 stated by the reviewer). The values of irrigated and unirrigated 
 lands differ so enormously that we should be drawing very erroneous 
 conclusions from these figures if we do not consider the increase in the 
 irriga*-ed and unirrigated areas separately. For instance, in 1890, the 
 16'9 millions of acres of unirrigated lands comprised within holdings 
 were assessed to the revenue at only 174*6 lakhs of rupees, while 4*1 
 millions of acres of irrigated land were assessed at 205' 7 lakhs of 
 rupees, or in other words, acre for acre, irrigated, land is worth nearly
 
 ooxov 
 
 6 times ' as much as unirrigated land, supposing that the assessment 
 bears a uniform ratio to the rental, which, of course, can be taken to be 
 true only as a very rough approximation. The increase in the unirri- 
 gated area was from 16 millions to 16'9 millions, or o'6 per cent, and 
 in the irrigated area from b'rt millions to 4'1 millions of acres, or by 
 14 per cent. The increase thus shown has to be discounted on account 
 of excess area found in holdings only in districts which have been 
 surveyed between 187U and l«yO, and districts which have not yet 
 been surveyed, or which were surveyed prior to 1870, remain untouched 
 by this consideration. These latter districts are the Goddvari, the 
 Masulipatam portion of the Kistna district comprising the Kistna 
 delta, Tanjore, Trichinopoly, Malabar, Bellary and Anantapur, the 
 larger portion of the South Arcot and the Karnool districts, i.e., they 
 include nearly all the districts in which the tracts commanded by the 
 great irrigation systems are situa,te(^, or in which areas classed as wet 
 largely predominate. The survey increase in the remaining districts 
 may, on a rough calculation, be estimated at 160,000 acres in irrigated 
 and 800,000 acres in unirrigated land. The real increase in the unirri- 
 gated land is thus reduced to 100,000 acres or "6 per cent., and in the 
 in'igated land to 340^000 acres, or 10 per cent. If the two classes of 
 land be reduced to a common denomination by taking o acres of unirri- 
 gated land as equal to an acre of irrigated land, the increase in hold- 
 ings in the 20 years amounts to 5 per cent., while the increase in 
 population during the same period has been 14 per cent. 
 
 The course of prices. — A most important consideration, which the 
 reviewer entirely overlooks in his examination of the pressure of popu- 
 lation on the land, is the course of prices. In the 10 years ending 1870, 
 the prices ruled highest, this result being due to the fact that the 
 quantity of precious metals received into the country as the value of 
 merchandise exported and as the proceeds of loans raised in England 
 for carrying out railways and irrigation works, was largely in excess 
 of the requirements of this country for purposes of currency. The 
 average price of second sort paddy during this period was Es. 172 
 per garce. After 1870, the price suddenly fell, and the average for 6 
 years prior to the famine of 1877 was reduced to Es. 141. During 
 the famine, of course, prices rose enormously and the average price for 
 the whole decade reached the level of that of the previous decade. The 
 prices for the decade ending 1890 have, however, averaged only Rs. 
 142. The prices during the last 2 years have been higher, but this is 
 due to the drought which has prevailed over large portions of the Pre- 
 sidency and the consequent failure of crops. What is stated above as 
 regards the price of paddy is more or less true of other food-grains, for 
 the prices of these food-grains move in sympathy with those of paddy, 
 subject to the qualification that as their consumption is confined to special 
 tracts, the rise or fall in their prices in years of scarcity or plenty, as 
 the case may be, is in a greater ratio than the rise or fall in the price 
 of paddy. Now increased pressure of population can only mean the 
 inability of the supplies of food to overtake the demand and the rise 
 of the price of food as a consequence. The prices of food- grains have 
 not risen in normal years above the level of the years immediately pre- 
 ceding the famine. So recently as 1887, the price of paddy, seooncl
 
 CCXCVl 
 
 sort, went down as low as Rs. 128 per garce, the lowest point it had 
 reached during the previous 30 years. If the purchasing power of silver 
 had risen, this result would be consistent with increased pressure of 
 population; hut the purchasing value of silver has really fallen by 
 more than one-third, or nearly 35 per cent., as compared with gold, 
 and absolutely by at least 20 per cent. This being so, supposing other 
 things were equal, the prices of food-grains should have risen in the 
 same ratio. When, however, we find that there has been in recent 
 normal years no rise in the prices of food-grains at all, the conclusion is 
 irresistible that the increased pressure of the population on the means 
 of subsistence is so far a mere tigment of the imagination. 
 
 Actual cultivation and holdings. — Further instances of the re- 
 viewer's unfair and inconclusive reasoning are found in his remarks on 
 the proportion borne by the area of actual cultivation to the acreage 
 of ryotwar holdings, the increase of the land-tax, and the sub-divisions 
 of holdings. Prior to the famine of 1877—78, the ratio of the area 
 of cultivation to holdings was 88*2 per cent, on an average, and in 
 1890 the ratio was 85'2 per cent. The fall in the ratio is taken 
 by the reviewer as indicative "of a decided retrogression in the 
 ability of the ryots to carry on the cultivation of their holdings." To 
 ordinary minds, a fall in the ratio in normal years would be proof of 
 the fact of the pressure on land having been lightened and not increased, 
 for, were the latter the case, the land-owners who were unable to cultivate 
 portions of their holdings would relinquish such portions, and increasing 
 difficulty would be felt in realising the Q-overnment dues, leading to 
 forced sales for the recovery of arrears of revenue. This is not only not 
 the case, but the very opposite of it is true. The area of land sold for 
 arrears of land-tax has been constantly diminishing during recent years, 
 while the revenue itself is collected with the greatest punctuality. The 
 area sold in 1890 was 23,615 acres out of a total area of holdings of 21 
 million acres ; more than half of this area consisted of valueless land 
 on the margin of cultivation taken up or relinquished by the ryots 
 according to the exigencies of the season, and was pui'chased by Grovern- 
 ment for nominal prices averaging less than 2 annas per acre. The 
 true reason, however, for the fall in the percentage is the fact that prior 
 to 1874 the statistics of acreage of cultivation included portions of 
 demarcated fields left waste which are now excluded. In 1871 the 
 extent of portion of fields left waste amounted to 325,000 and in 1872 
 to 500,000 acres or 1^ and 2^ per cent., respectively^ of the total area 
 of holdings. In the calculations given in my Memorandum, I accord- 
 ingly made an allowance of 2 per cent, on this account. The reviewer, 
 who has not thought it necessary to take the trouble of investigating 
 the question fully, has summarily rejected my estimate as " without 
 justification." 
 
 IV. PrcsHure of population. — What then are the actual present 
 position and immediate future prospects as regards pressure of popula- 
 tion ? I have dwelt at some length in my Memorandum on the various 
 considerations bearing on the question, but as the reviewer has ignored 
 most of them, confining his attention almost exclusively to the single 
 consideration of the extension of the area of cultivation, it is desirable 
 even at the risk of repetition to consider the question as a whole. The
 
 COXCVll 
 
 first point requiring consideration is the normal rate of increase of 
 population in this country. ' In the decade ending 1890 the population 
 increased by 15 per cent, or 1'44 per cent, per annum, but the increase 
 dui'ing this period was obviously abnormal. The mortality caused 
 .by the famine of 1876-78 fell heaviest on the very old and the very 
 young, and birth-rates for the time received a check. The result was 
 that in the surviving population the proportion of aged and juvenile 
 persons was abnormally low, and that of persons of what may be called 
 reproductive ages correspondingly high. Now the increase of popula- 
 tion is due to the exoess of the births over the deaths. The births 
 during the decade were abnormally high because of the abnormally 
 high proportion of persons of reproductive ages left in the population, 
 and the deaths were abnormally low because the proportion of aged and 
 juvenile persons among whom the death-rate is the liighest was ab- 
 normally low. The combined effect of both the causes was to enhance 
 the rate of increase of population for a short period far beyond what 
 it would be under normal conditions. The disproportion, however, 
 soon rights itself, and the rate of increase of population resumes its 
 normal level. It is clear, then, that the I5 per cent, rate is one which 
 is maintained for a brief period shortly after the population has been 
 reduced very considerably by frightful mortality such as that of the 
 famine of >876-78. This high rate may also be maintained when 
 there is extraordinary accession of prosperity resulting from exceptional 
 circumstances such as the " boom '^ in the decade ending 1870. In 
 either case, however, the effects must be merely temporary ; and I 
 mention this to show that it would not be right to treat the H per cent, 
 rate as if it were normal, and to expect that population would go on 
 increasing at this rate. In the Census Report of British India for 
 1881, the normal rate of increase was estimated at '6 per cent, for 
 districts liable to frequent failures of crops and '8 per cent, for the 
 remainder of the Presidency. Between 1870 and 1890 the population 
 increased by 14 per cent., or '6Q per cent, per annum, and as such a 
 frightful famine of 1877 is not likely to occur except once in a century, 
 1 per cent, per annum may be safely taken to be the normal rate of 
 increase for this country. 
 
 The second question for consideration is: Is the production of the 
 country per head of the population lower now than it was in 1870 ? 
 If it is, it would not necessarily show that the country, notwithstanding 
 the temporary check received by" it, is not economically progressing in 
 the right direction, and this for two reasons, viz., first, 1870 marks the 
 end of a period of abnormal prosperity, when, owing to the American 
 war and consequent demand for Indian cotton, the Indian produce had 
 trebled in value, and large areas devoted to the production of food- 
 crops were cultivated with cotton crops, and inferior soils were taken 
 up for the cultivation of the former under the stimidus of high prices ; 
 and the season in 1870 itself is described in the Grovernment records to 
 have been " conspicuously favorable for agricultural operations ; " and, 
 secondly, in about the middle of the period the country was afflicted 
 with a terrible famine which caused a mortality of nearly four millions, 
 and a loss of revenue of 1*2 crores of rupees and entailed on the State 
 an expenditure of Q^ crores of rupees in dispensation of relief to the 
 suffering population. Let us, however, see what the actual facts are. 
 The population increased during the 20 years by about 4^ millions^
 
 COXOVUl 
 
 or 14 per cent. The increase in the area of holdings, allowing 'for the 
 superior productiveness of irrigated as compared with unirrigated land, 
 and taking into account the survey excess, may be estimated, as we 
 have already seen, at 5 per cent. Is the inference to be drawn (as the 
 reviewer has done) that the income per head of the population is about 
 10 per cent, less than what it was in 1870, and that the established 
 standard of living has to that extent deteriorated ? A little consider- 
 ation will show that such an inference is opposed to fact. As I have 
 already stated, prices fell from the inflated level they had attained in 
 the sixties so that for the five years preceding the famine of 1876-78 
 they were 30 per cent, less than the average of the previous decade. 
 Prices now, excluding the last 2 years in which a drought prevailed 
 over considerable portions of the Presidency, are not much above that 
 level. In the year preceding the famine of 1876-78, or, in other words, 
 before 1874, the rate of exchange was at par. Of late years the rate 
 of exchange, that is the value of silver expressed in terms of gold, has 
 fallen by as much as 35 per cent. This divergence in the values of 
 gold and silver is known to be, in the main, due to the fall in the 
 general purchasing power of silver ; and taking the latter to be even 
 as low as 20 per cent., the prices in this country, other things being 
 equal, should have risen at least in a corresponding ratio. Prices have 
 not risen appreciably and certainly not in anything lij^e a ratio of 
 20 per cent. Increased pressure of population means increased demand 
 for food and the rise in prices in consequence ; and a consideration of 
 prices, therefore, shows that the pressure has not increased, but, on the 
 contrary, has been lightened. Another gauge of the pressure of the 
 population is the change in the standard of living of the higher and 
 middle classes of the population and also the change in the real wages 
 of the labouring classes as estimated by the quantity of food-grains 
 which the wages, when paid in money, would purchase. No one who 
 has had the least experience of the country will deny that the standard 
 of living has considerably risen during the last 20 years. I have 
 collected together in my Memorandum a large body of evidence on this 
 subject, and my subsequent inquiries only go to show that I under- 
 stated the real position in this respect. As regards wages of labouring 
 classes, since I wrote my Memorandum, I have obtained information 
 from all parts of the country. Nearly 8,000 contracts for labour 
 registered in the various Registration offices of the Presidency have 
 been examined, and the result goes to show that in no instances have the 
 old customary rates suffered reduction ; that in tracts where custom 
 is persistent, the perquisites and extras now given are considerably 
 higher than they were ; that in some places grain wages for harvest 
 work have almost doubled, and daily wages have increased, though not 
 to the same extent ; that notwithstanding the depressed state of the 
 weaving industry, there is no redundancy of labour as compared with 
 past years ; that the complaint among landholders is that it is difficult 
 to get labourers either to work with zeal, or full time for the old rates 
 of grain wages, which is proof of the fact that there is a struggle going 
 on for the re-adjustment and enhancement of the old customary rates 
 of wages ; that during the off season when agricultural work is sus- 
 pended, labourers find other employment to a greater extent than was 
 the case in the past, and that the condition of labourers, except in 
 remote and secluded parts, is owe of decided improvement. I have 
 heard it sometimes asserted that while the higher classes and the lowest
 
 CCXCIX 
 
 classes have improved, the middle classes have deteriorated. Such an 
 assertion carries with it its own refutation. There is no sharp division 
 between the several classes in this country, and the gradations rise or 
 fall by imperceptible degrees, and when there is improvement in the 
 higher and lower strata it stands to reason that it extends all along 
 the line. The classes which work neither with the head nor with the 
 hands have, of course, suffered under the present regime. Persons 
 belonging to the middle classes who have .not been able to rise to the 
 requirements of the times and keep up with their fellows have also 
 had to sink relatively to a lower position, much to their chagrin and 
 discontent. Barring individual exceptions, that the middle classes as 
 a whole have risen along with the higher and lower classes, there 
 cannot be the slightest doubt. 
 
 The question ariseSj if the condition of the country as a whole has 
 not deteriorated since 1870, but, on the contrary, has improved, and if 
 the area of cultivation has not increased in proportion to the increase 
 in population, how is the additional wealth obtained ? The sources of 
 this additional wealth are (1) improved cultivation in tracts of country 
 where the conditions admit of it ; (2) extension of cultivation of valu- 
 able commercial products ; (3) the substitution owing to extension of 
 communications of cultivation of soils in tracts hitherto inaccessible for 
 cultivation of poor soils in tracts which have had all along the 
 advantage of good communications ; (4) additional value obtained for 
 commercial produce by reduction in the cost of transport by sea 
 and land ; and (5) the saving in the cost at which imported mer- 
 chandise is obtained both on account of the reduction in the cost of 
 production in the country whence the articles are obtained, and the 
 cost of transport. That these causes have diminished the pressure of 
 population will be seen from the fact that it is in the prosperous 
 districts— Tan j ore, Trichinopoly, Malabar, Madura, Tinnevelly and 
 Coimbatore — that the increase in the area of holdings has fallen much 
 short of the increase in population. In Tanjore, though cultivation is 
 not as careful as it ought to be, it is certainly much more careful than 
 it was in times past ; manure is made use of to a greater extent than 
 formerly. In the Shiyali taluk, I understand, owing probably to the 
 example set by the late Mr. Krishnasamy Mudelliar, more efficient 
 cattle power is employed for ploughing and the cattle are better fed 
 ■ and less liable to epizootics. In the dry districts the improvement in 
 agriculture has taken the form.of extension of well cultivation, which 
 is undoubtedly advancing by rapid strides when the expense and the 
 risk involved in finding suitable sites for wells are taken into account. 
 Manures are also applied to a considerable extent to market garden 
 produce in the vicinity of towns. Mr. Benson, in his analysis of the 
 agricultural statistics of the Kurnool district, notes : " For the irri- 
 gated lands near Nandyal, the whole country is swept to find manure. 
 Indigo vat refuse is brought from as far as 20 or 30 miles for use there, 
 and prices varying from Annas 8 to Rs. 5 a cart-load are paid for it. 
 The ryot no doubt appreciates such manures as are known to him, but 
 the number he uses is limited, and above all others, he does not appear 
 to understand the conservation of them. This is perhaps not surprising 
 when it is remembered how modern is any knowledge of the subject.^' 
 The bats' dung in the Bella Surghum caves is, it appears, collected and 
 carried away by men from Cuddapah, The extensiQn pf the cultivation
 
 OOC 
 
 of indigo and of sugar-cane has already been referred to. Gl-roundnut 
 cultivation lias brought a considerable accession of wealth to the South 
 Arcot and Chingleput districts and parts of North Arcot, Tan j ore and 
 Trichinopoly. The returns of this cultivation are very great and the 
 ryots, especially in the Shiyali taluk of the Tan j ore district, are using 
 considerable quantities of manure to prevent possible deterioration of 
 the soil by over cropping. As regards the effect of the extension of com- 
 munications in the way of bringing fertile soil in remote situations 
 under cultivation, it is a familiar truth not needing demonstration. 
 This fact to some extent acts as a counterpoise to the necessity for 
 poorer lands being taken up for cultivation as population increases. 
 As the Grovernment revenue assessed on lands depends upon the rent 
 value, which again is affected conjointly both by the productive power 
 of the lands and the facilities for taking the produce to market, the 
 fact of fertile lands in remote tracts having been taken up for cultiva- 
 tion could not be discovered merely by a comparison of the revenue 
 rates of the old years with those of recent years. As regards the in- 
 creased value realised by ryots for commercial produce and the low cost 
 at which imported articles are obtained, the following facts may be 
 noted. Within the last 20 years the value of the foreign sea-borne 
 trade of the Presidency has increased from 10*2 to 18'2 crores of rupees, 
 the increase in the imports being from 4"1 to 6'6 crores and in the 
 exports from 6*1 to ITS crores. The development of railways in this 
 country has greatly reduced the cost of transport of goods by land, and 
 the opening of the Suez Canal, the extension of telegraph lines, the 
 improvements and economies effected in the construction and working 
 of steamers have immensely diminished the cost of carriage by sea and 
 the incidental charges. An idea may be formed as to how great the 
 saving is from the fact that the cost of carriage of Cawnpore wheat 
 taken to Calcutta and shipped there to London was reduced between 
 1879 and 1886 by 9 shillings a quarter, a reduction of 22 per cent, on 
 the value of the wheat in London, viz., 42 shilling a quarter in 1881. 
 The value of the staple imported articles — cotton goods and metals — 
 has greatly fallen, the value at Calcutta being now one-third less than 
 in 1873, although during this period the value of silver has fallen 
 enormously. For more detailed particulars the paragraphs of the 
 Memorandum bearing on the subject should be referred to. 
 
 The next question we have to consider is whether there is any 
 immediate danger of the increase of population outstripping the increase 
 of production and causing a deterioration in the standard of living. 
 The population, as already observed, may, under normal conditions, 
 be assumed to increase at the rate of one per cent, per annum in 
 this country. T-he late Sir James Caird was of opinion that " it is 
 possible to obtain such a gradual increase of production as would meet 
 the present rate of increase of population for a considerable time. One 
 bushel per acre gained gradually in 10 years, in addition to a moderate 
 reclamation of cultivable land, would meet the demand of the present 
 growth of population ; considering the generally fertile nature of the 
 soil and that, in most parts of India, two crops can be got in the year, 
 this would seem to be a possible result. By these two methods wisely 
 combined, the increase of population may be safely provided for several 
 generations." The experience of the past 20 years to my mind 
 shows incontestably t^at, extraordinary and unforeseen calamities
 
 COCl 
 
 of sucli magnitude as the famine of 1.877 apart, there is no reason 
 to doubt that by the combined effoi-ts of the G-overnment and the 
 people, the modest estimate put forward by Sir James Caird would be 
 realised, if not exceeded. The Grovernraent has already done so much, 
 both directly by the construction of irrigation works and indirectly 
 by the extension of communications, that the tendency of increased 
 pressure of population has been counteracted without imposing on the 
 people the necessity to resort to the cultivation of poorer lands to any 
 considerable extent — a fact which, the reviewer, most erroneously, in 
 my opinion, takes to be evidence of the deterioration of the economic 
 condition of the population. The railway and irrigation projects still 
 under execution — the Tank Eestoration Sclieme, the Periyar and the 
 Eushikuliya irrigation projects, and the East Coast Eailway will 
 immensely develop what are now backward districts and add to the 
 food production not merely of particular tracts but of the country as a 
 whole. The reviewer has very curious ideas about the effect of irriga- 
 tion works on tracts of country other than those in which they are 
 actually situated, as he remarks tautologically regarding the Kistna 
 and the Goddvari anicuts that they affect " strictly localised areas," 
 ignoring the fact that the Groddvari and Burma rice are being sold at 
 Negapatam in the centre of the Cauvery delta, while considerable quan- 
 tities of Tan j ore rice are exported to Madura and Tinnevelly districts. 
 We have also seen that the real value of food-grains, «.^'., the price 
 taking into- account the change in the purchasing power of money in 
 terms of which it is expressed, has so far fallen and not risen. On the 
 part of the ryots the improvements effected by them have consisted 
 chiefly in the extension of cidtivation by wells and,- to some extent, in 
 the cultivation of commercial crops and the adoption of improved 
 methods of cultivation as regards crops for which there is a fairly 
 constant demand in foreign markets, for instance Tinnevelly cotton. 
 As regards cultivation by wells, I have made inquiries in all directions, 
 and there is not the least doubt that it is extending rapidly in Coim- 
 batore, Salem, Madura, Tinnevelly^ Chingleput and Trichinopoly 
 districts. Mr. Nicholson, I believe, found that, in some villages in the 
 Tinnevelly district, wells had enormously increased during the last 
 decade. The increase in the Coimbatore district is well known. In one 
 of the zemindaries in the Madura district for which I have information, 
 themmiber of wells has doubled during the same period. 20,000 wells 
 have been dug within the last 2 years alone with the aid of loans 
 obtained from G-overnment to the extent of upwards of 30 lakhs of 
 rupees, and a very recent inspection of these wells by the Settlement 
 Commissioner showed that they are in good condition and calculated 
 to be of great benefit to the tracts where they have been excavated. 
 The increase of produce due to application of irrigation to land whe- 
 ther the water is obtained from channels, tanks, or wells, must have 
 increased the average rate of outturn per acre and it is absurd on the 
 part of the reviewer to contend that this is not quite as legitimate an 
 increase in the average outturn as the additional produce obtained by 
 the adoption of improved methods of tillage, and of rotation of crops, 
 and by the application of expensive manures. Though there has been 
 some improvement in the latter respects also, it is on too small a scale 
 to be striking.
 
 cccu 
 
 The reasons why the improvement has taken the form of extension 
 of irrigation either by means of water provided by Q-overnment or 
 obtained by the ryots at their expense from wells are not far to seek. 
 Cultivation in this country is dependent on supply of water, while in 
 England the main problem connected with agriculture is drainage. 
 The extreme variations in the quantity of rainfall and the times when 
 it comes down make every other consideration of far less importance 
 than the supply of water in the quantities and at the times required 
 for cultivation. The first great requisite of successful agriculture 
 except in black cotton soils, which are extremely retentive of moisture 
 and yield abundant returns in spite of scanty rainfall, is therefore 
 storage of water or the tapping of subsoil springs. The application of 
 irrigation to crops increases also the produce so enormously in pro- 
 portion to the cost of the water that no other mode of raising additional 
 produce from land can compete with it. In the case of lands for 
 which means of irrigation are not available, the produce fluctuates 
 greatly from year to year according to the quantity and seasonableness 
 of the rainfall. This great uncertainty operates as a bar to the in- 
 troduction of improved methods of cultivation, rotation of crops, &c., 
 except in the case of commercial crops for which there is a fairly 
 constant demand in f.oreign countries, because in the case of a rotation 
 of crops for instance, the year in which a light restorative crop is 
 grown might be one in which the season is very favorable and the 
 year in which the main crop is grown might be one of drought. 
 Again, deep ploughing, which is of great assistance to the crop in 
 times of drought, is not required in times of comparatively good rain- 
 fall. Similar considerations apply to irrigation by means of wells. I 
 have found from inquiry in the Coimbatore district that garden cul- 
 tivation by means of wells cannot be carried on successfully unless the 
 cultivator has some acres of dry land attached as an adjunct to his 
 " garden " lands. The reason for this is the following. The labour of 
 lifting water is great and the cultivator has to employ all through the 
 year hired labour and bullocks for the purpose. If the rainfall be 
 abundant in any particular year the cultivation can be carried on to a 
 great extent without lifting water, and in such cases both human 
 labour and cattle power will have to be kept idle, i.e.y wasted, unless it 
 is employed in dry cultivation thereby enhancing the cost of culti- 
 vation by wells. In dry seasons, on the other hand, when the culti- 
 vation has to be carried on mainly with the aid of water baled from 
 wells, the whole labour and cattle power is concentrated on the 
 " garden " lands, and the dry fields are left uncultivated. The profits 
 of cultivation in both the years are nearly the same as the value of 
 produce in the dry season would be higher than in the favorable 
 season, notwithstanding that the area under cultivation in the former 
 year was considerably less than in the latter year. In the same way 
 the proportion of crops, pulses for instance, to cereals, is to some 
 extent determined by the extent to which pulses enter into the diet of 
 the population. These considerations are specially applicable to pro- 
 duce grown for home consumption. As foreign dem^jud is developed 
 owing to extension of communications there will be greater room for 
 regulating the kinds of crops grown so as to obtain the largest out- 
 turns from the land. I have alluded to these considerations merely
 
 CCClll 
 
 to show why there is so much difficulty in putting into practice the 
 principles of agricultural science under a given set of conditions, and 
 that it is not reasonable to expect any marked improvement in agri- 
 cultm-al methods unless there is a change in these conditions. At the 
 same time, foreign demand for agricultural produce is changing the 
 conditions so as to enable the cultivators to cultivate the soil in the 
 manner calculated to. make it yield the largest return ; and in this 
 way while, on the one hand, foreign trade carries off the ingredients 
 of the soil, it also, by placing more wealth in the hands of cultivators, 
 and by making improved methods of cultivation, by which the waste 
 is repaii'ed, possible, works its own cure. 
 
 It is at this stage — a stage to which the country is tending — that 
 Government has to adopt all possible measures to ensure that the 
 ryots do not fall below the requirements of the situation. The chief 
 requisites in the ryots can only be very briefly indicated here. These 
 are (1) enterprise or readiness to seize hold of advantages within their 
 reach ; (2) knowledge of agricultural principles and practices ; and (3) 
 capital. The first want can be supplied only by education — both high 
 and elementary, high for the richer classes who must be the pioneers 
 in agricultural improvement, and elementary to the poorer classes who 
 must imitate and successfully carry out the improvements demon- 
 strated to be practicable by the former. The second want must be 
 supplied by the establishment of Agricultural Schools and Model 
 Farms at various centres in the country. It would not do to look for 
 any immediate results from the establishment of these schools and 
 farms, any more than from measures for imparting elementary edu- 
 cation, but the knowledge acquired in these institutions when it 
 becomes diffused would bear fruit in time so soon as the conditions of 
 any particular tract allow of its practical appKcation with profitable 
 results. The third want must be supplied by the establishment of 
 Agricultui'al Banks. The poorer ryots are unable now to obtain 
 small sums of money required for various purposes connected with 
 their calling except at rates varying from 12 to 18 per cent, even 
 when they are able to offer unexceptionable security for the loans, and 
 this means that they are debarred from making improvements other 
 than those which yield large returns for a small outlay ; and this 
 circumstance must, of course, greatly limit the scope for improve- 
 ment. Moreover, one of the effects of the present regime is to diffuse 
 wealth among the mass of the population and not to concentrate it 
 in a few hands in a form easily available for industrial purposes. 
 Unless measures are adopted by Government, by the provision of 
 banking facilities of a character which commands the confidence of the 
 people, to collect these savings in one mass and make them available to 
 persons in need of money for various industrial enterprises at reason- 
 able rates of interest, the material progress of the country will be 
 greatly retarded. None of these measures, it is almost needless to say, 
 will by itself suffice ; they should all go hand in hand and when the 
 external conditions favorable to agricultural improvement come into 
 being, those who are expected to move in that direction will be enabled 
 to seize hold of the opportunities presented. It must further be 
 remembered that agricultural improvement after it has set in cannot go 
 on indefinitely and that real progress must come from continual 
 improvement in the standard of living, which implies the gradual re-
 
 CCCIV 
 
 adjustment of social usages and institutions that conduce to the increase 
 of population beyond the limits imposed by such standard. It may 
 be that there is no prospect of such a transformation taking place in 
 the near future, but as, at the same time, there is no immediate danger 
 of the increase of production not keeping pace with the increase of 
 population, there is, so far as I can see, no reason to despair that the 
 transformation will take place in due time. Meanwhile, the Govern- 
 ment will, b}^ educational agencies — -both for the richer and the poorer 
 classes — have to make unremitting efforts to quicken the intelligence 
 and promote habits of enterprise and forethought among the people. 
 
 V. The remedial measures proposed bi/ the revieicer. — The reviewer, 
 however, does not consider that the remedies for the evils of the present 
 economic position lie either in the institution of Agricultural Banks, 
 or in spreading a knowledge of agricultural principles broadcast 
 through the land. He believes in tlie necessity for intensive farming, 
 and to render progress in this direction possible in the near future, he 
 considers it necessary, in the first instance, to attack certain problems 
 of rural economy. The particular remedies he recommends are the 
 following : First, to check the inordinate increase in the number of 
 pauper ryots and to endeavour to turn the tide the other way, so that 
 the pobuper ryot may become a solvent labourer ; secondly, to encourage 
 and enforce the consolidation and enclosure of all holdings, so that 
 cultivation may become economical, and the individual may reap the 
 fruits of his labour ; thirdly, to teach the ryot to be self-dependent for 
 the support of his cattle and thus gradually to lead up to the improve- 
 ment of the tilling power by the rejection of the worthless ; fourthly, 
 to encourage the capitalist, instead of the speculative pauper, to embark 
 in agricultural pursuits ; and fifthly, to check the export of the raw as 
 contrasted with the manufactured or half-worked produce of the land. 
 I have given the suggestions in the reviewer's own words, as it is very 
 difficult to attach any definite meaning to them. What precise mea- 
 sures Grovernment should take to secure the first of the objects aimed 
 at the reviewer does not explain, but the suggestions sometimes put 
 forward in this connection are that an upset price of say not less 
 than ten times the Government revenue payable should be put upon the 
 land taken up for cultivation, to prevent its being worked in a racking 
 manner and thrown up when exhausted, and that sub-division of hold- 
 ings below a certain minimum limit should be prevented by legislation. 
 The futility of the proposed restrictions will be apparent on the slightest 
 consideration. Waste lands are now sold in the Bombay Presidency, 
 but no remarkable results have beeu achieved and no capitalists full of 
 the spirit of agricultural enterprise have come forward to bid for them. 
 In the dry districts, there are lands of little or no value and nobody 
 would pay for them ten times the Government assessment ; and capital- 
 ists can have no difficulty in getting any quantity of land if they 
 want it. The occupation of the poorer lands has, to some extent, been 
 discouraged by the imposition of substantial assessments on the lowest 
 classes of lands, and large extents of lands in a great many districts 
 have been taken up for fodder and fuel reserves under the Forest Act. 
 The objection to raising the assessments of the lowest classes of lands is 
 the great distress and impoverishment it would cause to existing holders 
 of lands. For instance, if a cultivator owns 80 acres of lands assessed 
 at 4 annas per acre, and if the assessment be raised to Re. 1 per acre he
 
 cccv 
 
 will be feimplj ruined ; ho will be turned, in faot, from perhaps a poor 
 ryot into not a solvent labourer, but into a landless labourer without any 
 means or opportunities for procuring subsistence. 
 
 The suggestion to fix a minimum limit to sub-division by legislation 
 is equally impracticable. There is no means of enforcing such a 
 striction, and wherever it has been imposed it is found that the law is a 
 dead letter. The Government might, no doubt, refuse to recognise the 
 sub-division for the purpose of recovery of its revenue, but this does not 
 prevent the holding being practically sub- divided for purposes of cul- 
 tivation, while remaining undivided for purposes of revenue collection. 
 Even if it were thought proper for Government to insist on the holding 
 being the exclusive property of some one of the sharers, and the Gov- 
 ernment granted it away arbitrarily to him, it would be of doubtful 
 advantage to the favored individual who would be burdened with the 
 liability to pay the other sharers the value of their shares ; and the 
 tendency of the legislation would be to compel the sharers to continue 
 as members of a joint family even when they found it advantageous to 
 divide. There would be difficulty also in fixing the minimum limit 
 with reference to the requirements of the several classes of lands, e.g.^ 
 lands in the vicinity of towns, employed in raising market garden 
 produce, which are highly productive and held in small plots. 
 
 Mr. Henry W. Wolff in an article on peasant properties contributed 
 to the Contemporary lieview for May 1891, makes the following remarks 
 on the failure of legislative attempts to regulate the minimum limit 
 of farms in Germany : " Under the modern Saxon law — similar laws 
 exist in other countries — a ' peasant property ' is not divisible beyond a 
 certain minimum area. It is a foolish regulation as the result has 
 shown. For the small plots and the 'rolling' — i.e.^ detachable — portions 
 fetch throughout the highest prices. Protection, after its wont, has 
 inj ured the interest which it desired to benefit. Following in the foot- 
 steps of the Hanoverian Government, most German Governments have 
 introduced what they call a Hoeferolle, a register, i.e., in which peasant 
 owners may inscribe their properties in order to ensure, in cases of 
 intestacy, undivided descent to one heir. That law has in most countries 
 remained a dead letter. One agricultural Minister related to me with 
 glee that he had done better than his short-sighted colleagues. They 
 had left the presumption on the side of division. He had put it on the 
 side of intact descent. But his shrewdness does not appear to have 
 materially altered the result. The fact is that the proprietors know 
 their own interests far better than do })aternal Governments. Theyfind 
 it more to their advantage to curtail their holdings, and to sell at a good 
 price in plots than to retain large showy estates at a loss. Foiled in 
 respect of the HoeferoUe the advocates of larger properties now openly 
 propose such preposterous measures as these — enforced devise of un- 
 divided properties at much less than their real value, a provision securing 
 mortgagors against notice of repayment except by a sinking fund 
 (spread over many years) , and partial exemption from rates and taxes ! 
 Could there be a more complete confession of failure ? These wise 
 people have been fighting very hard against common sense and Provi- 
 dence. Both alike point out very clearly the way in which a plethora 
 of population can and should relieve itself. They know better. But 
 once more the sea has held its own against meddling Canute." In 
 Germany, as in France, the farms appear to be of very small size. 12|
 
 CCCVI 
 
 acres are taken to yield, for a family consisting of 5 persons, corn 
 necessary for subsistence and for seed. 77 per cent, of tlie holdings 
 are under that average and of this again 58 per cent, are under 5 acres. 
 In Wurtemburg the average size of separate properties is stated to be 
 about three-quarters of an acre. Mr. Wolff quotes the following testi- 
 mony of a German official in regard to the beneficial effects of small 
 holdings on the industry and thrift of the labouring classes : " The 
 unmistakable advance in productive farming observable in the plain of 
 the Rhine — the district principally affected by the (sab-dividing) Lan- 
 drecht — stands in the closest possible relation to the growing sub-division. 
 The advantage afforded by the fact that every day-labourer in the 
 country may acquire a small plot of land, may, by industry and thrift, 
 add to his modest holding, and eventually raise himself to the position 
 of an independent Bauer, cannot be rated too highly ; for the prospect of 
 making himself economically independent is one of the most powerful 
 incentives to the exercise of economical virtues. The smallness of the 
 proprietary plots in the plain of the Ehine is accordingly no evil, but 
 rather a direct advantage. Rach one of these small cultivators makes 
 it his endeavour to raise from his soil, by the cultivation of ' trade- 
 plants,' of vegetables and the like, the most remunerative crops, and to 
 employ the surplus of his working power as profitably as he can at some 
 trade, at paid day-work or otherwise." 
 
 As regards the second of the remedies suggested by the reviewer, the 
 idea that Government can '* enforce " the breaking up of the village 
 system and the substitution of homestead farms without a change in 
 rural conditions is entirely chimerical. The proposal evidently owes its 
 origin to a misapplication of the teachings of English Agricultural 
 History to the conditions of rural life in India. There is a good deal 
 of misapprehension as to the nature of the ryots' cultivation which is 
 oftentimes likened to the open field or champion system as it prevailed 
 some centuries ago in England. The last remnants of this cultivation 
 were swept away by the partition of Samudayam lands in the Chin- 
 gleput district, and no ryot is now hampered in the cultivation of his 
 holding to the best advantage, though the villagers, owing to their 
 poverty, need each other's assistance in connection with the various 
 incidents of rural life. The enclosure and consolidation of holdings were 
 brought about in England by social and economic causes and the Legis- 
 lature, in so far as it interfered at all in the matter, did so with a view 
 to arrest a -too rapid transformation. The leading facts as regards the 
 conditions under which development of English agriculture took place 
 may be very briefly noted. During the middle ages, England had a 
 monopoly of the wool trade, so much so that the revenue required for 
 carrying on the continental wars was derived almost wholly from an 
 impost on wool, the rate levied in emergencies being as high as 100 per 
 cent, ad valorem. The trade was a most profitable one and common 
 lands were extensively enclosed and holdings consolidated and turned 
 into sheep-walks, with the result that where hundreds of ploughmen 
 were employed their places were taken by a few shepherds. In the 
 beginning of the sixteenth century thousands of agricultural labourers 
 were thrown out of employment and reduced to a condition of the 
 greatest misery. The Legislature strove to stem the tide by insisting 
 on landlords maintaining a certain proportion of the area of their estates 
 under tillage and the necessary farm buildings, but without effect. Mr.
 
 OCCVll 
 
 Protiiyro, in his book on the Progress of English Farming, mentions 
 that a " Petition in the reign of Henry VIII, states that 50,000 ploughs 
 had been put down. Each on the average maintained 13i persons. 
 Thus 675,000 persons were thrown out of work when the whole popula- 
 tion of the country did not exceed 5 millions." The diflScultios of the 
 situation were immensely aggravated by the enormous rise in the price 
 of provisions due to the discovery of the American silver and gold mines 
 and the influx of the precious metals into England ; the price of wheat, 
 which in the latter half of the sixteenth century and the first half 
 of the seventeenth averaged 9s. 2d. per quarter was 47.s. bd. a quarter 
 or more than 5 times as much in the latter half of the seventeenth 
 'century. Rents rose very high and landlords accumulated great wealth 
 at the expense of the working classes and the wages were kept 
 down by stringent labour laws. Laws were enacted also to put down 
 vagrancy, to compel the able-bodied vagrants to work and to provide 
 relief to the impotent poor. Under these regulations, " all people who 
 used subtle, crafty, and unlawful games and plays, or who feigned 
 a knowledge of physiognomy and palmistry, all those who had no 
 apparent means of support and who were fit for work, all fencers, bear- 
 traders, jugglers, pedlars, tinkers, petty chapmen, and strolling players, 
 all unlicensed scholars or shopmen who were caught begging were 
 considered to be rogues and sturdy beggars." To this period is to be 
 referred the beginning of the system of poor relief which has developed 
 to such enormous proportions in England. In the seventeenth century 
 some schemes for the reclamation of swamps were undertaken and the 
 way was prepared for the introduction of improved methods of agri- 
 culture, but the agricultural practices themselves did not undergo any 
 material alteration. The ^sturbed relations caused by the depreciation 
 of the precious metals and the consequent increase of prices had settled 
 down ; capital had accumulated ; the eflficiency of human labour had 
 increased ; the horse was substituded for the ox in ploughing ; and the 
 extension of pasture farms and cattle farming had provided increa-sed 
 manure for arable lands. In the beginning of the eighteenth century, 
 there was a rapid advance in agriculture. Several improvements were 
 adopted which, aided by good seasons, increased greatly agricultm'al 
 production. The wages and the standard of living of the labouring 
 classes rose, and wheat became a necessary article of diet in the place of 
 inferior grains. During the latter half of the eighteenth century the 
 popidation increased enormously and the progress of manufactures 
 caused a diversion of labour from agriculture to manufactures. Wars 
 and bad seasons had increased prices of food-grains and the enclosure of 
 commons and consolidation of holdings proceeded with redoubled speed. 
 At the end of the eighteenth century prices rose so high as 115s. a 
 quarter, with the result that land-owners increased their standard of 
 living, which they were unable to keep up when the prices reached a 
 normal level. The small owners suffered severely and they found it 
 profitable to sell their holdings to large owners and to seek employment 
 for their capital in manufactures, which were assuming large proportions. 
 This diversion of a large part of the population to manufacturing 
 industries rendered it necessary to grow a larger quantity of food with 
 a diminished quantity of human labour and thus materially aided the 
 introduction of machinery. The rapid changes which were taking 
 place, and principally the substitution of machinery in manufactures
 
 CCCVUl 
 
 r 
 
 together with a faulty administration of the poor law, had induced 
 a great amount of pauperism ; but the enormous growth of manufactures 
 during the first three-quarters of the century soon gave employment to 
 the surplus population. The use of animal food became general, and 
 the tendency was to convert arable into pasture land and the price of 
 wheat was maintained at a high level. High farming and intensive 
 cultivation were assisted by the high price and the large proportion of 
 lands under pasture. During the last 15 years, however, the price of 
 both wheat and meat has fallen owing to foreign competition, the 
 former from about 485. to about 32s., and the complaint is now general 
 that high farming does not pay in England. 
 
 These being the facts connected with the progress of English 
 agriculture — and I have given a very imperfect sketch alluding only 
 to such facts as bear on the question on hand — is there any analogy 
 between the conditions under which large farms became profitable in 
 England and the conditions which exist in this country ? In England, 
 it has been calculated that while only 53 men can be supported per 100 
 acres on a dairy farm, 250 can be maintained on the same acreage of 
 wheat and 683 on a like acreage of potatoes ; and yet out of 50 million 
 acres of arable and pasture land in 1880, 25 millions of acres were under 
 permanent pasture, and 11 millions under com crops in the United 
 Kingdom. In India, it was pointed out by Dr. Buchanan as early as 
 the beginning of the century, that " the religion of the natives is a power- 
 ful obstacle in the way of agriculture. The higher ranks of society 
 being excluded from animal food, no attention will, of course, be paid to 
 fattening cattle; without that, what would our agriculture in England be 
 worth ? We could have no green crops to restore our lands to fertility, 
 and a scanty manure to invigorate our crops*f grain." As to the intro- 
 duction of machinery, the low value of human labour stands in the 
 way. It has been found that at the present value of labour, no water- 
 pump can compete with the Picottah in lifting water from wells. Again, 
 Sir James Caird has pointed out that a square mile of land in England 
 cultivated gives employment to 50 persons in the proportion of 25 men, 
 young and old, and 25 women and boys, and that if four times that 
 number or 200 were allowed for each square mile of cultivated land in 
 India, it would take up only one-third of the people. What is to 
 become, then, of the surplus human labour, if economical methods are 
 extensively employed. Manufactures are not growing on an extensive 
 scale to afford employment to the surplus population, and how are the 
 " pauper " ryots to be transformed into " solvent " labourers ? Is the 
 Grovernment to undertake the duty of finding work for the ryots 
 deprived of land or of feeding them at the public cost in normal seasons 
 as it does during famines, or is the surplus labour to be swept away as 
 so much " human rubbish ?" The possibility of high farming paying 
 depends on economic conditions, and so long as the conditions are absent, 
 no direct interference of Grovernment for bringing about large farms 
 and consolidation of holdings can be other than mischievous. Large 
 farms arc suitable to a country like England, which has to raise food 
 for a population, the bulk of which is engaged in manufacturing indus- 
 tries ; and agricultural improvements in this country should obviously 
 follow on lines adopted in European countries where peasant properties 
 prevail, by giving security of tenure, by the diffusion of education 
 among the peasantry, by the establishment of credit Banks, by Agri-
 
 CCClX 
 
 cultural Exhibitions and demonstrati(>ns, by the introduction of cottage 
 industries to give employment to the peasant population during the spare 
 time at their disposal, and such other measures as were pointed out by 
 Mr. Nicholson in the admirable preliminary note written by him as 
 Secretary to the Madras Agricultural Committee. European capitalists, 
 with their plethora of capital looking out for opportunities for invest- 
 ment, would not have been slow to embark in the business, if they 
 saw that they had the least chance of competing with native culti- 
 vators by adopting intensire methods of cultivations ; and I myself 
 personally know some intelligent native landlords, with command of 
 capital, who would be glad to invest a considerable amount in high 
 farming, if they could have a reasonable assurance that the capital 
 laid out would fetch 6 per cent, interest. And we have, in the 
 f ailui'e of the . Saidapet model farm to achieve profitable results, an 
 impressive warning against extravagant expectations being entertained 
 from intensive farming under present conditions. The model farm 
 was started in 1871 and after 5 years' trial was found to have been 
 worked at a loss of Es. 6,000 {vide Mr. Nicholson's " Pi-eliminary 
 Note," paragraph 42). There is undoubtedl}^ considerable scope for 
 improvement by the introduction of deep-ploughing, better conservation 
 of cattle manure, somewhat better treatment of cattle, and utilisation 
 of inexpensive waste products as manures not now known or suspected 
 to have manurial properties ; but such improvements can only come in 
 very gradually. The Grovei-nment has already, by the reservation of 
 large areas as fuel and fodder reserves, put a check on the taking up of 
 the poorer lands for cultivation and made intensive cultivation to meet 
 the requirements of the growing population to some extent necessary, 
 and it is difficult to see what further steps can be taken in this direc- 
 tion without causing great hardship at present to the great body of the 
 ryots. It should also be remembered that the proposal to encourage 
 the consolidation and enclosure of farms with a view to the introduc- 
 tion of intensive farming would go against the proposed legislation to 
 confer securifj^ of tenure on zemindari ryots, wldch is recognised on 
 all hands to be a pressing necessity in the present situation. 
 
 The reviewer's third suggestion is not intelligible. If it is intended 
 that grazing farms should be maintained for the support of cattle 
 required for agricultural purposes, it would hardly pay the ryot to do 
 this, seeing that cattle are not fattened in this country for meat, and 
 that it would be profitable to obtain the cattle required for ploughing 
 and draught from professional breeders. If the ryots require a better 
 description of cattle than they now use, and are willing to pay the proper 
 price, doubtless such cattle would be bred in larger numbers than at 
 present. It has been calculated that 5 acres of lantl have to be kept 
 under grass to feed a single head of cattle properly, and if this estimate 
 is at all correct, it is obvious that it would be ruinous to breed cattle of 
 this description, as 5 acres now produce corn sufficient to feed three 
 human beings. The fourth suggestion is without any special signi- 
 ficance, and it is connected with the first and second suggestions already 
 considered. . It is not clear what measures the reviewer intends should 
 be taken for carrying out the fifth suggestion, viz., to check the export 
 of raw, as contrasted with the manufactured or half- worked produce of 
 the land. If it is intended that this result should be obtained by the 
 levy of heavy export duties, it would simply destroy the foreign trade of
 
 cdcx 
 
 the country as imports must he paid for hy the exports. In f&ct, it is 
 time wasted, considering seriously such crude proposals which violate 
 the most elementary economic considerations. 
 
 Concluding Remarks. — I have found no small difficulty in ascertain- 
 ing what precisely are the reviewer's conclusions as regards the progress 
 made by the country as his reasoning is full of inconsistencies. He 
 admits that there has been '* very great advance " during the last 40 
 years and that the first half of this period was one of " marked and 
 unchecked progress." As regards the second half, he asserts, however, 
 that there is no evidence to show that the production of food is much 
 ahead of the demand, although it has increased during the period. He 
 admits,, at the same time, that about the middle of the period occurred 
 " the severest famine known in Southern India during the present 
 century " and that this visitation threw back the Presidency "to an 
 enormous extent." Notwithstanding the rapidity with which the 
 Presidency has recovered from the effects of the famine, he calls the 
 period one of agricultural " stagnation," if not of retrogression. The 
 reason assigned for characterising the period as one of stagnation is the 
 fact that the area of ryotwar holdings has not increased in the same 
 ratio as the population. The reviewer in the same breath asserts that 
 the liberty accorded to pauper ryots to take up lands of the poorer 
 qualities which alone now remain unoccupied, or in other words, 
 extensive cultivation, is at the root of the evils of the present economic 
 position, and that the occupation of such lands should be checked. He 
 considers that the effects of improved and cheaper internal and external 
 communication during the last 20 years should have stimulated enor- 
 mously its greatest industry-— agriculture — where the products are so 
 bulky and difficult to move. It does not occur to him that the cheapened 
 cost of production and transport due to these causes might have 
 obviated the necessity for falling upon the poorer soils for production, 
 as indeed will be seen to have been the case, when the facts connected 
 with grain wages of the labouring classes, the prices of food-grains, and 
 the standard of living, are taken into account, and that it is a satisfac- 
 tory feature that the internal and external trade of the country should 
 have increased in the manner it has notwithstanding what he calls 
 the " throwback " of the famine. As the best means of stimulating 
 agricultural production, he recommends that " the export of the raw, as 
 contrasted with the half -manufactured produce of the land " should be 
 checked. Again, for the purpose of diminishing pauperism, he advo- 
 cates the enforcement of the enclosure and consolidation of holdings, 
 forgetful of the fact that the advantage of large farms consists in the 
 economising of labour, that this economising of labour on any large 
 scale cannot be carried out without much suffering unless there are 
 alternative occupations ; that in a country where the labourer himself is 
 the cheapest of machines and manufactures are non-existent, any 
 sudden or great displacement of labour must induce a frightful amount 
 of pauperism and reduce the condition of the lower classes, bad as it 
 is, to a still lower level ; that large farms which will deprive the vast 
 majority of the population of all interest in the soil, must necessitate 
 the maintenance of a very costly system of poor relief with all its 
 demoralising features, and that a system of large holdings can be 
 introduced only pari pas.sH with the development of industrial occupa- 
 tions, and that for a country where opportunities for employment not
 
 CCOXl 
 
 connecled with agriculture are so few, a syetem of peasant properties is 
 the best suited. Those who, in common with the reviewer, believe 
 that Government can, by adopting a few measures of a drastic charac- 
 ter, pull by main force the teeming millions of the popidation out of 
 their accustomed grooves determined for them by the economic condi- 
 tions under which they have to work, and set them going in this or 
 that direction which is considered desirable, will doubtless feel disap- 
 pointed at the slow rate at which the country has progressed. Those, 
 on the other hand, who take note of the difficulties to be surmounted 
 in raising the economic condition of the population which was as bad 
 as bad could be but 40 years ago ; the liability of most parts of the 
 country to the extremes of plenty and dearth alternately — a state of 
 things conducive to careless habits of life and inimical to the forma- 
 tion of habits of steady industry, the tendency of every increase in 
 production to be absorbed in mere increase of numbers unless there is a 
 rise in the standard of comfort; the necessity for the readjustment 
 of time-honoured, religious and social usages for effecting any perma- 
 nent change in the standard of comfort, and the impossibility of 
 effecting such a change by coercive methods which do not touch the 
 intelligence of the people, will, when they compare the state of things 
 at present with what it was in the past, be gratified to see that the 
 improvement has been so substantial ; and will further see more 
 " consolatory signs of decided and vigorous progress " in the future than 
 the reviewer has been able to detect. While recognising that every 
 step in improvement adds to the duties and responsibilities of Grovern- 
 ment and requires wiser statesmanship than even in the past for guid- 
 ing the country through the period of transition, and for meeting new 
 evils by methods and measures calculated to influence the growing 
 public intelligence, they will see no reason in the experience of the 
 past to despair that either the Grovernment or the people wQl rise 
 to the requirements of the future. 
 
 (2) Note on the progress of Education in the Madras Presidency between 
 1870-71 and 1890-91 by S. Seshaiyar, Esq., B.A., Professor of 
 Kumhahonam Oollege. 
 
 During the past twenty years the Madras Presidency has made 
 indeed a vast progress in education. The most noteworthy features 
 of that progress are (1) the enormous expansion of higher or collegiate 
 education, (2) the rapid diffusion of elementary or primary education 
 among the bulk of the population, and (3) the strong stimulus given 
 to female education. 
 
 Prior to 1850, there were few or no English schools in the 
 mofussil. The only institution in the Presidency in which a liberal 
 English education was given was the Presidency College in Madras. 
 It was in 1853 that Government started its first schools for in- 
 struction in English at Zillah or Provincial stations. Kumbakonam, 
 Eajahmundry, Calicut and Cuddalore were among the earliest centres 
 chosen for the experiment. The University of Madras was constituted 
 in 1857 and held its first examination for the degree of Bachelor of 
 Arts in 1858. From 1858 to 1871 inclusive, the number of young men
 
 cccxu 
 
 who passed the examination for the degree of Arts was 199. *In the 
 two decades that followed including 1891, it rose- up to the astonishing 
 fio-ure of 2,552. The Bachelor of Arts degree represents the ordinary- 
 collegiate course taught in an Indian College, and may, for all practical 
 pur]30ses, be regarded as marking the highest general culture received 
 by the youth of the country. The studies that one pursues after pass- 
 ing the B.A. Examination are either special and technical, such as 
 those pertaining to Law, Medicine, Engineering, &c., or the advanced 
 branches of Mathematics, Philosophy, and the like, to qualify oneself 
 for the higher degree in arts. It is but a small fraction of those who 
 receive the B.A. degree that go up for examination in Honours. The 
 number of those who qualify themselves for the special studies men- 
 tioned above must necessarily be limited by the demand of the learned 
 professions for specialists. At present the most crowded of them is 
 Law. Teaching likewise absorbs in its service a large number of the 
 alumni of the University. The technical colleges now in existence are 
 all maintained by the State ; and they are the Law College, the College 
 of Civil Engineering, the Medical College, the Agricultural College, 
 and the Teachers' College. Looking into the statistics for 1890-91 we 
 find that there were 35 Arts Colleges in the Presidency — First and 
 Second Grades together — with an attendance of 3,200 scholars. These 
 figiu-es indicate a great advance as compared with those of 1870-71 when 
 the number of colleges was 12 with an attendance of only 385 scholars. 
 Again 548 candidates appeared for the B.A. Examination in 1891 as 
 against 65 in 1871 ; the number of candidates for the F.A. Examination 
 was 531 aud 2,052 for the earlier and the later years respectively. These 
 figures are sufficient to show the rate of expansion of collegiate education 
 during the interval under notice. One very satisfactory feature of this 
 development is that learning is no longer the monopoly of any one 
 section of the Indian community. The desire for English education is 
 spreading among all classes. Of the 3,200 students in attendance 
 at the Arts Colleges in 1890-91, 38 were Europeans and Eurasians, 
 244 Native Christians, 46 Muhammadans, 2,208 Brahmins, 658 non- 
 Brahmin Hindus, and 6 other classes. Nor has the alleged difficulty 
 of findiiig suitable openings in life for educated men had as yet any 
 appreciable effect on the growing demand for English education. Look- 
 ing to the efficiency of public service alone, there would yet seem to be 
 open a large field for educated talent. There are indications too that the 
 education given in our colleges is fostering in its recipients a spii'it of 
 self-help and manly enterprise. The number of young men who have 
 in recent years taken to commercial pursuits, or have crossed the sea 
 for service in Burma, afford evidence of the new spirit. Nor would there 
 seem to be any foundation in fact for the^ opinion that the Indian 
 Colleges are rearing up a body of disaffected young men. Those who 
 have had the best opportunities of watching the progress of education 
 in the country and its results are almost unanimous in holding that its 
 influence for good has been marked, considering the short period during 
 which it has been at work. 
 
 Equally satisfactory has been the development of what is called 
 secondary education, which comprises a course of studies, extending over 
 six years, in English and in one of the vernacular languages of the 
 country, as also in the elementary portions of History, Greogi'aphy, 
 Mathematics, Physics and Chemistry. The Matriculation Examination
 
 CCOXlll 
 
 of the 'Madras University constitutes the final test of the work of 
 what may be designated Anglo- Vernacular schools. The number of 
 candidates who went up for this examination in 1891 was 7,002 as 
 against 1,358 in 1871, The number of pupils under instruction in 
 1890-91 in all the Anglo- Vernacular schools of the Presidency was 
 nearly 80,000. 
 
 One of the recommendations of the Educational Commission was 
 that Grovemment should gradually retire from the field of higher 
 education. So far as the Madras Presidency is concerned, that recom- 
 mendation has already been carried out in the main. Of the 35 arts 
 colleges existing in 1890-91, 30 were private and aided institutions, 
 and of the 556 secondary schools for boys, only 26 were maintained by 
 Grovemment. Whether the highest or collegiate education could safely 
 be left wholly to private agency might be a question. There are various 
 reasons why it should not be, even if private agencies were financially 
 equal to the task. But experience shows that private effort with some 
 aid from Government is quite equal to the call of secondary education. 
 In this connection, we are bound to mention the incalculable service 
 rendered to the cause of Indian education by European Missionary 
 Bodies. They should justly be regarded as the pioneers of modern 
 Indian civilization. But how long this foreign help might be relied 
 upon is problematical. In the meanwhile, it is satisfactory to note that 
 native communities, Hindu and Muhammadan, are learning the lesson 
 of self-help in education as in other things and may, when the time 
 should come for it, be able to occupy the field that may be vacated by 
 Christian Missions. Another satisfactory feature in connection with 
 educational progress is the steady rise in the fee receipts in colleges 
 and schools. High and middle schools, in most parts of the Presidency, 
 are nearly self-supporting and need only a small percentage of grants 
 from provincial or local funds. Even in colleges the fees cover an 
 appreciable proportion of the total expenditure. In the Grovemment 
 College at Kumbakonam, which is one of the cheapest colleges in the 
 Presidency, the income from fees met in 1890-91 a third of the total 
 cost of the institution. In recent years a considerable share of educa- 
 tional work has devolved on Municipalities and Local Fund Boards. By 
 this means it has become possible to keep up middle and high schools 
 at stations away from capitals of districts where private agencies have 
 not sprung up. 
 
 The most striking feature in the history of education between 
 1870-71 and 1890-91 is the great diffusion of elementary knowledge 
 among the masses of the population. A numerous agency is at work, 
 whose special mission is to carry the rudiments of vernacular education 
 to the simplest villager. Village schools have been organised in nearly 
 all parts of the country and are periodically visited and examined by 
 the inspecting staff of the Educational department. In the Educational 
 Eeport for 1890-91, Dr. Duncan remarks : " Of the lower primary 
 schools, 2,558 with 140,422 scholars were situated in municipal 
 towns. Omitting them, 19,470 schools with 503,472 scholars were 
 located in non-municipal towns and villages, which, according to the 
 census of 1881, numbered 52,592. Most of the small towns and large 
 villages contain more than one school each. But in many villages 
 the population is too small to maintain a- separate school. In view of 
 these facts, only one village in three can be said to be provided with
 
 COOXIV 
 
 a school." Going back to 1870-71, we find that primary edflcation 
 was then in its infancy : only 1,606 schools had been registered in the 
 official returns for the whole Presidency, and these, with an attendance 
 of 42,299 pupils, earned a grant of Es. 60,332 from Government. It 
 is clear then that since 1870-71 primary education has been rapidly 
 extending under the combined exertions of Government, Municipalities, 
 and Local Fund Boards. By far the largest share of the financial cost 
 of primary education is now borne by Municipalities and Local Boards. 
 According to the returns for 1890-91 it was no less than five-sixths of 
 the total charge. The most pressing question in connection with primary 
 education is, of course, the question of finance. While there seems to be 
 almost an indefinite scope for the extension, and the improvement in 
 quality, of village schools, the agencies, who now mainly contribute 
 towards their upkeep, are beginning to feel the pressure of cost and 
 complain that they have already gone far enough, in justice to other and 
 more pressing demands upon their resources. 
 
 Perhaps the most hopeful sign of the intellectual and moral progress 
 of the country is the encouragement given in recent years to female 
 education. In 1870-71, there were no girl-schools to speak of, except 
 the few that had been started by Christian Missionaries in Madras and 
 a few other stations. In 1890-91, according to the report of the Director 
 of Public Instruction, there were no less than 87,715 girl-pupils under 
 instruction. The number that has gone through the higher courses of 
 school and collegiate study is, as may be expected, very limited ; but 
 there are hopeful indications that increasing numbers will soon go up to 
 the higher stages of education. Only two women have as yet taken the 
 degree of Bachelor of Arts in the local University. Sixty- three female 
 candidates went up for the Matriculation Examination in 189 0-91, of 
 whom 37 were successful, while 278 candidates appeared for the Higher 
 Examination for Women, of whom 160 passed and obtained certificates. 
 It is a significant fact that even the most conservative classes of the 
 Indian community are coming under the influence of this new education — 
 which^ as it spreads wider and wider, would doubtless prepare the way for 
 those much-needed social reforms, for which our reformers are fighting 
 so hard, but now without the support of those who constitute the 
 real strength of Hindu homes. 
 
 During the period under review, steps were also taken for encour- 
 aging education among Europeans and Eurasians, Muhammadans and 
 other classes who, by reason of their poverty or other cause, were slow 
 to avail themselves of the ordinary facilities for education afforded by 
 the State. On the 31st March 1891 there were 94 schools for Europeans 
 and Eurasians with an attendance of 3,855 boys and 3,152 girls, and 
 936 schools for Muhammadans with 39,089 pupils under instruction. 
 Municipalities and Local Fund Boards now pay special attention to the 
 education of the backward sections of the community, such as weavers 
 and other handicraftsmen. Night schools have also been started for 
 the sons of these classes, so that those who cannot spare time in the day 
 may be instructed for an hour or so after sun-set. According to the 
 return for 1890-91, there were no less than 609 night schools with an 
 attendance of 11,706 pupils. Schools for Pariahs specially are few as 
 yet : but under the order of Government recently issued, they will soon 
 come into existence.
 
 cccxv 
 
 One of the most important questions for the consideration of Govern- 
 ment is technical and scientific education bearing on arts and industries. 
 How the existing arts and industries of the country may be improved 
 or what new ones may be introduced are questions that demand the 
 early attention of Government. At present there exist but a few schools 
 for the benefit of those who seek instruction in arts and industries. 
 The foremost of such institutions is the School of Arts in Madras, in 
 which the attendance in 1890-91 was over 400 pupils, who received 
 instruction in some of the ornamental arts and higher . industries. 
 Schools have also been opened in some of the larger trading towns in 
 the mofussil, such as Eajahmundry, Kumbakonam, Negapatam, Guntur, 
 Madura and Nazareth, in which drawing, carpentry, and a few other 
 industries are taught. Industrial sections have also been attached to 
 Government Normal Schools in the mofussil. All these appear, however, 
 to be crude and imperfect attempts, pending a satisfactory solution of 
 the question as a whole — beset, as that is, with great difficulties, finance 
 being not the least of them. 
 
 In the sketch above given nothing more has been attempted than 
 the barest outline of the progress of education during a period of twenty 
 years, beginning with 1 870-71 and ending with 1890-91, the last official 
 year for which statistics were available. Enough, it is believed, has 
 been said to show that education has spread far and wide in the coimtry, 
 and that nearly all classes of the community have come under its influ- 
 ence. There cannot be any doubt that this spread of education will 
 have an important effect on the future economic and moral condition 
 of the people.
 
 OCOXVl 
 
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 COCXVlll 
 
 (F). — Local Fund and Municipal Administration, &c. 
 
 •Extracts from the reTnarks of Sir Alfred Lyall in regard to the political 
 inexpediency of Government relinquishing its right to control the manage- 
 7nent of religious institutions in this country {Sir Alfred LyalVs 
 " Asiatic Studies "). 
 
 Sir Alfred Lyall has pointed out that from a political point of view 
 it was a mistake for the Indian Q-overnment to have relinquished its 
 right to control religious endowments. The following are extracts 
 from his remarks : 
 
 " In India they have no conception of the animosity against 
 Establishment which has been fostered in England by Acts passed'to 
 enforce unity of religious profession and uniformity of clerical teach- 
 ing, by the old attempts to drive wandering sects like sbeep into one 
 fold under one official shepherd. -A.s there rias never been one nation 
 or one religion in India, so a national church establishment, excluding 
 all others, has never been imagined. That the Sovereign should provide 
 decently for his own persuasion is regarded as natural and decorous ; that 
 he should distribute revenue allotments (or continue them) to every 
 well-defined religious community is thought liberal ; that he should 
 administer to all religious properties and interests is right and proper ; 
 that he should ignore them all and provide not even for his own faith . 
 would be a policy comprehensible only by those who had studied 
 English polemics, and one without precedent in Asia '^ 
 
 " It has been said latterly, and with some reason, that the English 
 Q-overnment acted prematurely, and upon incomplete knowledge of all 
 the considerations involved, when it resolved to sever the ancient chain 
 which bound the religious institutions of each province round the feet 
 of the Government which annexed them, and when we thus, in liberat- 
 ing ourselves from being plagued with old-world fancies, threw away 
 the repute and leadership which accrued to the Sovereign of India 
 from being universally recognized as the authority whose conge cVelire 
 was required, or whose arbitration was accepted, in all nominations and 
 successions to important religious office or estate. In the Madras 
 Presidency the superintendence of ' no less than seven thousand six 
 hundred Hindu establishments had hitherto been vested in the officers 
 of Government ; and this was more than a nominal superintendence ; 
 the people regarded the district officer as the friendly guardian of their 
 religion. ' Speaking of the aversion of the people to the abandon- 
 ment by Government of the management of a famous pagoda (Tiru- 
 pati) in North Arcot, the district magistrate wrote : ' No persuasion 
 or reasoning could effect a change in the resolution they had taken ; 
 the management of this pagoda, they said, had been in the hands of 
 the ruling power for ages back ; the innovation proposed was contrary 
 .to established custom, and if persisted in, religious worship in their 
 temple would cease. . . . ' 
 
 " At first we were over-careful to conciliate native prejudices by 
 showing official respect and deference to rites and ceremonies of a 
 nature largely repugnant to European habits of thought in such 
 matters ; and we were far too anxious to prove that we had no notion 
 of giving umbrage to powerful creeds by favoring Christianity, which
 
 , COOXIX 
 
 had n*o political importance. This overshot the mark, and naturally 
 displeased European opinion ; so we gave way to a strong re-action, 
 and at one time we borrowed from the religious politics of Grreat Britain 
 to an extent which laid us open to complaints that the English Govern- 
 ment in its endeavour to assume an impartial and irresponsible attitude 
 towards all religions, had not sufficiently regarded the material interests 
 of the native creeds and rituals, or their prescriptive claims upon the 
 ruler, whoever he may be, of their country. . . . 
 
 " In England an assurance of neutrality would probably mean that 
 the Grovernment had determined to have nothing whatever to do with 
 the affairs, temporal or spiritual, of any sect or creed ; in India, the 
 declaration is generally taken to convey a welcome guarantee that the 
 Queen will not favor one religion more than another; but it is not 
 SO' welcome if it is found to mean the complete renunciation by their 
 governors of all direct authority or headship over the management of 
 the temporal interests of their religions. Such a course of action is 
 foreign to all historic experience of the relations between secular and 
 ecclesiastical authorities throughout Asia. It may be the only course 
 now open to the English in India ; nevertheless another might be 
 learned from observing the organization of all great Asiatic Grovernments, 
 and from the example of every ruler over divers tribes and nationalities 
 — namely, that in certain conditions of society the immediate authority 
 and close supervision of a monarch over the powerful religious interests 
 with which he has to reckon at every step, is a matter of political 
 expediency, not an affair of doctrine or opinion, but a recognized duty 
 of the State. To relinquish this position is to let go at least one real 
 political advantage which accrues to us from our attitude of perfect 
 neutrality, that of enabling us to superintend and guarantee the reli- 
 gious administration of all sects with entire impartiality, and with the 
 confidence of our subjects. There is no reason whatever to regret the 
 abolition of the old regime under which public officers were literally 
 agents and managers for religious institutions ; that system was rightly 
 condemned. But to cut away all the historic ties between Church and 
 State, to free Asiatic religions from every kind of direct subordination 
 to the executive power, would be to push the principle further in India, 
 where it is not understood and has no advocates, than has as yet been 
 attempted even in any«country of Europe, where it is supported by a 
 large and increasing party."
 
 GOYEENMENT OF MADEAS. 
 REVENUE DEPARTMENT 
 
 Read — the following letter from Diwan Baliadur S. Srinivasi 
 Raghavaiyengar Avergal, to the Secretary to Govern- 
 meut, Revenue Department : — 
 
 Adverting to your demi-official communication of the 5th 
 March 1892, i have the honour to submit a complete copy of 
 my " Memorandum on the Progress of the Madras Presi- 
 dency during 'the last Forty Years." 
 
 2. The collection aud reduction of the necessary statistics 
 and the preparation of the second part of the memorandum 
 took up more tiuie than 1 had anticipated, and 1 was able to 
 complete the work only last May notwithstanding that I 
 took privilege leave for three months in the beginning of 
 this year for the purpose. 
 
 3. I should be wanting in ray duty if T did not brino- 
 to your notice the valuable assistance rendered to me by 
 M.R. Ry. C. kSarvothama Row, b.a., travelling clrrk of my 
 office, and M.R.Ry. R. Saminathaiyar, b.a., head clerk in the 
 Revenue Secretariat. The heavy work of compilation and' 
 reduction of statistics under my directions and the correction 
 of the proofs devolved on Sarvothama Row, and but for 
 the assistance cheerfully afforded by him at all times I 
 should have found it impossible to do ' this special work 
 along with my official duties. R. Saminathaiyar made ab- 
 stracts of official and other papers required for the earlier 
 portions of the memorandum, and I have utilised his high, 
 mathematical attainments and sound knowledge of economic 
 principles in getting some of the intricate calculations 
 ohecked. 
 
 Order — dated 20th October 1893, No. 915, Revenue. 
 
 Miccellaneous. 
 
 With the foi-egoing letter Diwan 
 Bahadur S. Srinivasa Raghavaiyen- 
 gar, (J. I.E., submits to Government, in 
 a complete form, his "Memorandum on the Progress of the 
 Madras Presidency during the last Forty Years of British
 
 administration." Although bearing this modest title, the 
 work is indeed a compendious history of the period to which 
 it relates, compiled with great industry and care mainly from 
 official records, but embodying also the results of independent 
 inquiries. The task which the author at the request of His 
 Excellency the then Governor Lord (Jonnemara undertook to 
 perform, and' which, in the opinion of His Excellency the 
 Governor in Council, he has very successfully accomplished, 
 was " to examine whether the economic condition of the 
 Madras Presidency, and especially of the agricultural classes, 
 has improved or deteriorated during the last forty years, and 
 whether, if there has been improvement, it is proceeding on 
 right lines." 
 
 2. After describing briefly the state of the country and 
 the condition of the people in former centuries, and, from 
 the information available, drawing the conclusion that the 
 government of former rulers was generally oppressive, the 
 author proceeds to consider the state of the Presidency at 
 the end of the eighteenth century, when most of the pro- 
 vinces of Southern India were acquired by' the British. The 
 position at this time is described thus : " Jn the .earlier 
 centuries, although the country had suffered from frequent 
 wars, it had, with some intervals of anarchy, the advantage 
 of a more or less settled governmeut. In the eighteenth 
 century, however, the completest anarchy prevailed, and the 
 position of the people was miserable in the extreme. In 
 the Zemindar and Poligar countries the only limit to the 
 exactions to which the ryots were subject was their ability 
 to pay; the customary share of the produce, belonging to 
 Government was nominally half, but additional taxes were 
 levied on various pretexts, reducing the share enjoyed by 
 the ryots to one-fif«th or one-sixth." Such was the state of 
 the country when the government thereof was assumed by 
 the Enghsh : the condition of the agricultural classes, who 
 formed the bulk of the population, is said to have been 
 
 'abject and demoralized to the last degree. 
 
 3. The next section is devoted to a description of these 
 classes under British administration during the first half of 
 the present century. Efibrts were made on all sides to 
 improve the position of the ryot, but frequently without 
 success. The substitution of payment of Government dues 
 in money for the former system of payment in kind, led to 
 much inconvenience and hardship owing to the insufficiency 
 of the currency to meet the increased '* duty " thrown upon 
 it by the change, and prices steadily fell. The period of 
 20 years from 1834 to 1854 was one of great agricultural
 
 (iii) 
 
 depression on account of tlie low prices of grain, and, during* 
 
 ■ the 30 years which preceded this period, progress was retarded 
 by five successive famines. During the early years of the cen- 
 tury metalled roads were unknown, and- wheel-traffic, except 
 for short distances, did not exist. Trade was hampered by 
 want of communications and the means of transport and was 
 confined to the narrowest local limits. The general improve- 
 ment of communications throughout the country may be said 
 to date from the report of the Public Works Commission 
 issued in 1852. 
 
 4. The author then proceeds to review the principal facts 
 
 bearing upon the condition of the 
 agricultural classes from the middle 
 of the century to the present time. About the year 1854 
 the period of agricultural depression came to an end and a 
 time of great prosperity bes:an. The demand abroad for 
 Indian commodities largely increased — the result of several 
 * causes, such as the discovery of gold in'Australia and Cali- 
 fornia, the Crimean war, and, above all, the Civil war in 
 America which increased enormously the demand for Indian 
 cotton. Exports, which in 1840-41 amounted to only 13-^ 
 millions sterling, rose in 1864-65 to 68 millions. Silver 
 flowed into the country and large loans — especially for the 
 construction of railways and other public works — were raised 
 in England, of which it is calculated that about one-half was 
 expended on wages in India. The result was that the 
 currency was replenished and the prices of Indian produce 
 rose to three times what they had been in the years immedi- 
 ately preceding 1850. During this period, moreover, many 
 administrative reforms were introduced. The police was 
 organised upon a new footing ; the Settlement Department 
 was constituted for the purpose. of alleviatmg the heavy 
 burthens on land and of removing inequalities in assess- 
 ments ; the revenue and magisterial establishments were 
 revised and village accounts were simplified ; and, above all, 
 an enormous impetus was given to the construction of public 
 works, notably works of irrigation. With increased demand, 
 tLe wages of labour rose in proportion to prices. 
 
 5. The period of high prices continued till about 1870, 
 when a re-action, took place. At this time several new and 
 unfamiliar forms of taxation were resorted to, chiefly of a 
 "local" character, and, while still suffering from the effects" 
 of faUing prices, the country was visited by the terrible 
 
 ■ famine of 1876-78. The cost of this calamity, in(?luding 
 revenue remitted, amounted to 8 millions sterling and the 
 loss in population was nearly 4 millions.
 
 ( iT) 
 
 6. Having reviewed the condition of the agricultural 
 
 classes before and after the establishment of British power, 
 
 ^ . the author proceeds,* by the help of 
 
 statistics, to examine what progress 
 
 has been made during the last 40 years, and he divides the 
 
 subject into the following heads : — . 
 
 (a) population ; • 
 
 (b) area of cultivation ; 
 
 (c) prices of produce ; 
 
 (d) improvement in the processes of production and in 
 
 communications ; 
 
 (e) foreign and domestic trade; 
 
 (f) taxatioT2 ; and , . . • • 
 
 (g) the standard of living of the different classes of the 
 
 population. 
 
 The figure? of tKe census of 1891 show that during the 
 last decade the population of the Presidency increased by 4^ 
 millions or by 15*6 per cent.; and assuming — as seems reason- 
 able — that no such famine as that of 1876-78 will, recur 
 within a century, the author calculates the normal increase of 
 population under pl'esent conditions to be not much less than 
 1 per cent, per annum. That the bulk of the population is 
 not devoid of the means of subsistence is the necessary infer- 
 ence from this high rate of increase. Upon the question 
 whether the advance in area cultivated has been equal to the 
 inciease in population, the author finds, upon the data availa- 
 ble, that since 1852 the increase in area cultivated has been 
 25, 41, and 138 per cent, of dry, wet, and well lands -respec- 
 tively, and that the increased pr(iduction has been very con- 
 siderable. In regard to prices, the conclusions arrived at 
 are that from 1828 to 1853 prices rapidly declined until they 
 were 25 per cent, below those which ruled in the early years 
 of the century ; that between 1853 and 1865 they rose till they 
 were twice as high as at the begfinning of the century ; that 
 from this level they declined by about 20 per cent, after 1870 ; 
 and that the average prices of the five years previous to 189P 
 show a slight increase over those of the lustrum ending with 
 1874. The author gives some interesting statistics showing 
 the vast improvements which have been made in communica- 
 tions and the effect produced thereby upon trade and prices, 
 especially in the levelling of prices in times of local scarcity. 
 By the development of communications the abolition of tran- 
 sit dulPieg and of customs duties, trade, both internal and 
 external, has advanced by enormous strides, in illustration of 
 thig statement the port of Tuticorin is cited. The value (;>f the
 
 ( T ) 
 
 trade of this port has risen from 23 lakhs in 1830 to 282 lakhs 
 in 1889-90. In regar"d to taxation the incidence (including 
 land revenue) per head of the population has risen from Rs. 
 1-14-6 in 1852-53 to Rs. 2-10-8 in 1872-73 and Rs. 2-14-3 
 in 1889-90, i.e., by 51 per cent, since 1852;. but of the 
 increased revenue raised a large proportion has been laid out 
 on works of public utility, such as communications, edu- 
 cation, irrigation, and medical relief. In considering the 
 standard of living, the author has roughly divided the popu- 
 lation into four classes, viz., the agricultural classes, non- 
 agricultural labourers, professional and mercantile classes, and 
 artizans and small traders. He calculates that one-fifth of the 
 ryotwari land revenue is contributed by agriculturalists who 
 are primarily labourers, but who supplement wages by culti- 
 vating small holdings ; about one-third is contributed by 
 peasant proprietors, who,- for the most part, till their own 
 land ; one-third by farmers who employ hired labour ; and 
 the remainder by the class who can afford to let their lands 
 and generally do so. With a holding of 8 acres of ordinary 
 dry land it is calculated that a ryot should be able to support 
 •his family, not indeed in luxury, but according to the stand- 
 ard of living which obtains among the rj'^ot population. 
 The. average money value of the food of an adult labourer is 
 estimated at Rs. 20 per annum and the remfineration of a 
 permanent farm servant at twice the cost of his feeding and 
 clothing expenses. So far as the non-agricultural class of 
 labourers is conceimed, it admits of no question that their 
 condition has greatly improved. With the development of 
 trade the members of the mercanxile and" professional classes 
 have largely increased and these are in a prosperous -condition. 
 The wages of artizans, in spite of the decline of some native 
 handicrafts, have greatly risfn, and the demand for luxuries, 
 which are provided by the skill of the brass-smiths, goldsmiths, 
 carpenters and masons, is increasing directly with the wealth 
 of the country. In considering the standard of living, the 
 author quotes the opinions of a number of gentlemen who have 
 had exceptional opportunities of observation and concludes 
 that there is ample evidence that the standard has risen. 
 Tiled and terraced houses are rapidly taking the place of 
 thatched roofs ; metal utensils are largely superseding earthen 
 vessels even among the lower classes ; better and more 
 clothes are worn, and considerable sums are now spent upon 
 the education of their children by persons of small means; 
 and althou'i'h it is true that every one feejs that his means 
 are inadequate to satisfy his wants, it is not that his wealth 
 has not increased, but that his wants have increased more
 
 (vi) 
 
 rapidly still. That the standard of living generally has 
 risen very con'siderably during the last 40 years, must indeed 
 be patent to every impartial observer, and the Government 
 fully concurs with the conclusions at which the author has. 
 arrived. Ih discussing the pressure of population upon the 
 soil, the author points out that it is precisely in those districts, 
 such as Tan j ore, where the population is most dense, that 
 air classes, not excepting the lowest, are the most prosperous, 
 and he calculates that the area at present under cultivation is 
 ample for the maintenance of the population and that the 
 area still left for extended cultiva-tion is very considerable. 
 He quotes Sir James Caird that " it is possible to obtain such 
 a gradual increase, of production in India as would meet the 
 present rate of increase of population for a considerable 
 time." Here, however, the author wisely remarks that the 
 increase of production has its limits, and for a permanent 
 improvement in the standard of living- and the general condi- 
 tion of the masses a change in the habits of the people in 
 regard to early marriages is a necessary requisite. The next 
 question discussed is " one which, for some time past, has 
 engaged public attention, viz., "whether the greater portion 
 of the population suffer from a daily insufficiency of food." 
 Upon this question, after inquiring in this connection how much 
 is sufficient, thfe author, who finds that as to certain broad facts 
 there can be no doubt, states his conclusions as follows :^— 
 (Ij the great majority of the population is very poor when 
 judged by a European standard ;' (2) compared with the con- 
 dition of the people fifty years ago there has certainly been 
 improvement in the material condition of the population, the 
 advance consisting mainly of a rise in the standard of living 
 of the upper strata of society and a reduction in the percen- 
 tage which the lowest grades bear to the total population ; (3) 
 the very lowest classes . still live a hand-to-mouth existence, 
 but, not being congregated . in towns, they have a better 
 physique than one would expect to find in them, considering 
 their resourcelessness and the frequency of crop failures, on 
 which occasions they have to pick up a scanty subsistence as 
 best they can; and (4) the economic condition of the country, 
 as a whole, though improving, is at. best a low one and is such 
 as to tax the energies and statesmanship of Government to 
 the utmost in devising suitable remedies for .its amelioration. 
 From these conclusions the Government is by no means 
 disposed to dissent ; they recall, however, the recorded obser- 
 vations of Sir Thomas Munro, made nearly a century ago, 
 whereby he cautions the governing authorities of that day 
 against expecting to effect in a generation a revolution in the
 
 ( vii ) 
 
 habits of the people of India which in European countries it 
 took centuries- to accompUsh. This part of the volume con- 
 cludes with a valuable comparison between the economic condi- 
 tion, of India and that of European countries and closes "with 
 the. hope that, having regard to the wonderful improvement 
 which has taken place in England'during the last three centu- 
 ries, a similar advance in prosperity may be attainable here. 
 
 7. In the next place •the author proceeds to consider* 
 ^„ . ^rr ■ certain alleajed evils in the present eco- 
 
 * Section VI. . ". , '■ 
 
 nomic position and to suggest • certain 
 remedial measures. Prominent among the suggestions here 
 made are .those which relate to the principles recently enunci- 
 ated for the revision of land assessments in future years. The 
 author points out that while it would be impossible to have 
 rules regarding revisions of a.ssessment conceived in a more 
 liberal spirit than those at present in force, yet these rules 
 are not generally known and that it is very necessary that 
 they should be widely published. Before doing so, how^ever, 
 he considers it essential that the initial standard schedule of 
 prices, with reference to which future revisions- of assessment 
 are to be regulated, should be fixed. He shows that the 
 commutation prices adopted for the existing settlements have 
 been calculated in dififerent ways and should not therefore be 
 taken as the standards for the future revision of assessments 
 with reference to prices. He suggests that the average 
 prices of a definite period prior to each settlement should be 
 taken as' the initial stcindard, and that the prices thus arrived 
 at should be compared with those of a like period preceding 
 any future revision. His Excellency the Governor in Council 
 regards this suggestion, as well as that which would- ensure 
 the publication in the official Gazettes of the rules regarding 
 the revision of assessments, as sound and practical, arid 
 proposes to take action in the direction indicated without loss 
 of time. The Government consider^, however, that there is 
 no need for legislation in this matter. 
 
 8. The proposals to improve the position of zemindari 
 tenants on the one hand, by the amendment of the law of 
 land-lord and tenant, and on the other to arrest the rapid 
 dismemberment of zemindari estates have -been anticipated 
 by Government. A draft Tenancy Bill and a draft Encum- 
 bered Estates Bill have been recently drawn up and will be 
 introduced into the Legislative Council at a very early date. 
 
 9. The remarks regarding the advantages of 'banking 
 facilities are of a practical character. The question of estab- 
 lishing what are known as Agricultural Banks has been
 
 ( ^iii ) • . . 
 
 r 
 
 under the consideration of Government for some time past, 
 a special officer, Mr. INicholson, bavingi" been deputed to 
 make inquiries concerning the constitution and working of 
 such banks on the continent of Europe and to report) to 
 Government upon the subject generally. Similarly as re- 
 garas Agricultural education, which has engaged the earnest 
 attention of the Madras Government for the last 30 years, 
 His Excellency the Governor in CQuncil hopes soon to be in 
 a position to determine what further steps should be taken 
 for its -extension, the- action of the Government having been 
 held in abeyance for some time past pending the disposal 
 by the Government of India of Dr. Voelcker's report. The 
 Educational Department will be requested to consider the 
 
 observations and sus^^estions on the 
 
 .* Sections 104 and 105. ,. , . p& . , 
 
 subject or 'technical education. * it 
 may, however, be remarked that Government is at the pre- 
 sent time in communication with the Director of the Geo- 
 logical (Survey of India with a view to the deputation of a 
 special officer to inquire into the mineral resources of the 
 Presidency, and it is probable that work will be begun at an 
 early date in the district of Salem. Doubtless the fish- 
 curing industry is susceptible of development, but the author 
 is hardly correct in supposing that it is at present altogether 
 in the hands of the poorest classes. Having examined under 
 the head of " costliness of justice" the system under which 
 justice, civil and criminal,. is admiiiistered, the writer con- 
 cludes with a chapter upon "Local and Municipal adminis- 
 tration and Legislation affecting local usages." Although 
 the idea of combination for public purposes of persons 
 belonging to different castes and creeds is a new one in this 
 country, it must be admitted that considerable success has 
 attended the efforts made to introduce an efficient system of 
 self-government in local affairs by the constitution of District 
 and Taluk Boards and Municipal Councils. With a view to 
 the further development of the usefulness of these bodies 
 the author makes several suggestions which are worthy of 
 Consideration. The proposal that to secure for the office of 
 Chairman in Municipalities persons trained in public business 
 the Government should lend the services of Deputy Col- 
 lectors, Tahsildars, &c., to the Councils for employment in 
 that office, seems to His Excellency the Governor in Coun- 
 cil to be a step of a somewhat retrograde character, and, 
 although in exceptional nases, the suggestion might,, perhaps, 
 • be adopted, the Government is not disposed to accept it as a 
 general rule. On the other hand the. Government fully con- 
 curs with the author in considering that further advance in
 
 ■ • • ( ix )• 
 
 the direction of local self-government is to be looked for only 
 by entrusting to local-bodies more and more of the work of' 
 real administration, and the suggestions as to the manner in 
 which these bodies might be utilized in advising the Govern- 
 ment in regard to legislation upon social matters, appear to 
 His Excellency the Governor in Council to be of much 
 practical value. In the last paragraph of this chapter the 
 question of legislation for the control^ of native religious 
 endowments is mooted.* Upon this it is only necessary to 
 observe that the manner in which -these institutions are now 
 administered has lono- been acknowledsfed to be unsatis-: 
 factory and that the Government has at present under its 
 consideration a .draft Bill to provide for the more eflBcient 
 control of such endowments. 
 
 10. The author concludes his valuable "Memorandum'* 
 with soine " general remarks in regard to the considerations 
 to be borne in mind in estimating the value of the results 
 achieved." He points to tlie condition of the country at the 
 beginning of the century "devastated by wars, famines and 
 bands of plunderers," and rightly observes that to under- 
 stand the full significance of the change which has come over 
 the country, one has to contrast what he sees at present, 
 unsatisfactory as it may appear from some points of view, 
 with the state of things, described above, and, having indi- 
 cated some of the evils which are inseparable from progress, 
 records his opinion, that " what remains to be done is 
 gradually to widen the foundations of Local Government and 
 make it strike deeper roots into society, so as to enable it t© 
 adjust its institutioiis to its needs as they arise, without 
 weakening in any way the power of the Central Government 
 to maintain a due balance between rival interests and creeds 
 and for interfering effectually when there is danger of such 
 balance being disturbed," and, referring to the change which 
 has taken place in' the feeling of the educated classes, who 
 are now apt to complain that progress does not proceed 
 fast enough, states his conviction that "the progress which 
 has been made under the new regime during the short time 
 it has been in force^fifty years is a brief interval in the 
 life of* a peopla— is httle short of marvellous." With this 
 conclusion His Excellency the Governor in Council fully 
 concurs-. 
 
 11. Having thus noticed the salient features of this valu- 
 able work and expressed his general concurrence with the 
 conclusions arrived at by the author. His Excellency the 
 ■Governor in Council desires to record his high appreciation
 
 
 (x ) 
 
 of the very efficient manner in wliich Mr. Srinivasa Raglia- 
 raiyengar has accomplished a difficiilt and arduous task. 
 That he has been able, without interruption of his duties as 
 Inspector- General of Registration, to compile this volume 
 and to collect the statistics comprised in. the appendices is an 
 indication not only of indefatigable industry but also of the 
 keen interest with which he has pursued his investigations. 
 Above all the thanks of Go^ ernment are due to him for the 
 valuable suggestions for imp-OVing the future administration 
 of the Presidency with ' which the] author concludes his 
 interesting/' Memorandum." The Government also notes 
 with approval the valuable assistance afforded to the author 
 by M.R.Ry. R. Swaminathaiyar and M.R.Ry. C. Sarvothama 
 Row. 
 
 (True Extract.) 
 
 ■(Signed) E. GIBSON, 
 
 Ag, Secretary to Governments 
 
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