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this House, that, if I occupied the position which I have the honour
to hold as President of the Board of Control, I would submit a
statement to Parliament respecting the finances of India, and, at the
same time, would give a general explanation of the progress of
India since the subject was last under discussion in this House. In
order to enable me so to do, I propose to follow the precedent set in
former years—though it is now only two years short of half a
century since an Indian budget was last presented to the House of
Commons—and to move certain Resolutions on the subject of the
finances of India. Those who have referred to what took place on
former occasions will be aware that many of the Resolutions then
moved (though some relating to the commercial receipts of the
India Company and to their transactions as manufacturers would be
inapplicable to the altered state of circumstances) referred to the
income, expenditure, and surplus of the Indian revenue, and they
will be Resolutions similar to those which, before I sit down, I shall
have the honour of proposing. The Resolutions referred first to the
revenue and expenditure of the several presidencies, next to the
revenue of India generally, and lastly, to the ultimate surplus, after
defraying the whole of the charges payable out of the Indian
revenues. The Resolutions which I shall submit are in truth, as on
former occasions, nothing more than assertions of matters of fact,
deducible from the accounts laid on the table of the House, whether
those prepared in the old fashion, according to Acts of Parliament,
or those framed in a different manner, which I moved for in the
course of the Session, and which are now in the hands of hon.
Members. The principal advantage, of course, which I anticipate
from the present discussion, is not so much the eliciting the
opinions of the House on the finances of India, as that it 1437will
enable Government to lay before the House a general view of the
state of the Indian empire, and also afford an opportunity to hon.
Gentlemen to make such observations as they think fit on the
subject, or to seek for further information connected with that most
important part of the British dominions, which, so far as I am able
to give it from any documents in my possession, I shall be anxious
to afford. I do not know that I need say much more on the general
character of the Resolutions, but before I go further into the
statement, I wish to say a word or two respecting the form of the
Indian accounts in the hands of Members. Under Act of Parliament,
accounts made up in a particular manner are annually laid on the
table of the House. I did not think, when I had time to turn my
attention to these matters, that the accounts presented in that
shape afforded as much information as it was desirable should be
laid before Parliament, and accordingly I desired accounts to be
framed very much on the model of the finance accounts of this
country, giving very full information on the subjects of the Indian
revenue, income, and expenditure. These accounts hon. Gentlemen
have had now in their hands for some time, and will be therefore
able to express an opinion with respect to them. They were framed
with very great care by a gentleman attached to the India
Company's establishment in the City, and were submitted to
another gentleman of the highest character in our financial
department, the chief clerk of the revenue room in the Treasury.
They afterwards underwent careful revision by myself, and I think
they may be considered satisfactory as regards their form, and the
character of the information they give. I am quite aware that they
exhibit some defects, which I hope to remedy before presenting
them to the House in another year, but for a first attempt to give
full information to the House, I trust they will be regarded as a very
great improvement on the present form of account. I also take this
opportunity of saying that I was anxious to present at the same
time to the House accounts similar to the trade and navigation
accounts of this country; but I found that, in consequence of the
accounts of the different presidencies not being kept in the same
form, or not being brought up to the same time, it would be difficult
in this year to produce complete accounts of this description.
Instructions were sent out in the course of last autumn to
the 1438different presidencies, desiring that the accounts might be
framed upon a new model, and I hope next year to be able to lay on
the table Indian accounts corresponding with the trade and
navigation accounts of the United Kingdom. I will only make one
further preliminary observation with respect to the time to which
these accounts are brought up. It is with very great regret that I am
unable to lay before the House accounts—that is to say, complete
accounts—up to a period later than the 30th of April, 1852. Those
which have been laid on the table of the House pursuant to Act of
Parliament, framed on the old model, I believe it would be easy to
present at an earlier period. But I have been unwilling to make any
change in this respect, because, though I might get the accounts
presented two or three months sooner, I should not be satisfied,
considering the accelerated means of communication with India,
until I gained a whole year, and produced in the month of May or
June complete accounts up to the end of the previous year.
Instructions have been sent to the Governments of the different
presidencies to expedite the transmission of the accounts as much
as possible; and I hope, before a couple of years elapse, that I shall
be able to effect the result I have stated. The general purport of the
Resolutions which I shall move—following former precedents—will
set forth the income and charge of each presidency, the income and
charge of India payable in India, and the difference between the
income and the charges. At the same time, it is true that the
accounts will not give an exact representation of the charges of the
separate presidencies, because there are some general charges
included in the revenues of each presidency, and some, which ought
to be divided among the several presidencies are charged to one.
Thus, the charges of the Government of India are defrayed out of
the revenues of Bengal; the charges of batta are paid out of the
revenues of Madras, and of the Indian navy by Bombay, though
these charges ought fairly to be distributed between the different
presidencies. In like manner, the retired pay and furlough allowance
for the whole of India are put into one general sum, though a
portion belongs to each of the presidencies. I mention this
circumstance to show that in the statement we are able to make out
we do not accurately get the separate charges of the respective
presidencies, nor the general charges of 1439the Indian Government as
distinguished from the local payments. Whether in another year it would be desirable to continue the
accounts in this form is a subject for consideration, but at present I will only repeat that this is a first
attempt to give information as fully as possible with respect to Indian finance. The information furnished
in the statement I am about to make is principally derived from the Parliamentary papers on the subject
under the heads in those papers, Nos. 12, 13, and 29. The first Resolution states the amount of the
revenue of the Presidency of Bengal, including some districts attached to it, and the local charges
thereon, exclusive of the military charge.
1441
§MR. KINNAIRD
said, that after the House had been sitting for ten hours, and after a
speech from the President of the Board of Control which had
occupied two hours and a half in its delivery, it would ill become him
to trespass at any length upon the House. He wished, however, that
the right hon. Baronet would take into consideration the propriety of
sending out instructions, that the accounts should not be made up
to April, but that they should be closed in December. The accounts
would then reach this country in June, and the right hon. Baronet
would not have to make his next speech to a House, the number of
whose Members varied from eleven to thirteen, as had been the
case tonight. He greatly regretted that this very important
statement had been put off until the very close of the Session. He
trusted that the public works for the benefit of the people would be
continued, and he would suggest to the right hon. Baronet that the
Governors of the four presidencies of Madras, Bombay, Bengal, and
Agra, and the officer at the head of the administration of the
principalities of Scinde, Pegu, and the Punjab, should be instructed,
at the close of each year, following the example of the Earl of Elgin
in the case of Canada, to draw up a Report of the progress which
had been 1472made in the departments of civil and criminal justice,
the state of the finances, and the condition of commerce, the
improvement in police, in roads, bridges, and internal
communication, and also the progress that had been made in the
education of the people, so as to give a distinct view of the position
and prospects of the respective provinces. If such Reports were laid
upon the table annually at the time of the Indian Budget, they
would be of incalculable good. They would create a wholesome and
a generous emulation among the Governors, and infuse a spirit of
greater zeal into their operations. The annual account would enable
Parliament, the press, and the public to compare the success of the
measures of one period with another, and test the real progress of
India. He believed that the government of India by this country had
tended upon the whole to the benefit of the inhabitants, and he
thought Parliament might boldly invite th criticism of the world upon
it.
MR. HUME
said, that the Reports upon the state of the different provinces of
India, which his hon. Friend (Mr. Kinnaird) wished for, were
regularly forwarded to the Court of Directors. [Mr. KINNAIRD: But
not to Parliament.] That was because the superintending officer of
the Government in that House had never done his duty by calling
for them. If the hon. Member would look at the Reports by Colonel
Sykes, he would find that there were better Reports accessible to
him of India than of England. It was not information that was
wanted, but publicity. He believed that the Directors of the East
India Company had determined to give greater publicity to their
proceedings than hitherto, not only here, but in India, where the
greatest mystery and secresy had been observed. He was
disappointed in the speech of the hon. Member for Devonport (Sir E.
Perry), from whom he had expected a statement of what he had
seen in India, and what he proposed to do for the people of that
country. With regard to the accounts, if they were made up to the
30th of April, as at present, ample time would be afforded for
having them correctly laid upon the table; and he thought,
therefore, that no alteration was required in the date to which they
were made up. He believed that the Government had taken the
proper course for ascertaining the requirements of so large and
diversified a class as the people of India, and he hoped the interest
taken in that people1473would continue to increase in future. He
felt the greatest gratification at the speech of the right hon.
Gentleman the President of the Board of Control. He had begun his
administration well, and he (Mr. Hume) trusted that from this time
forward we might expect to see an annual improvement in the state
of our Indian empire. He did not himself wish for many of the
alterations in the details of administration which had been referred
to by previous speakers. What he desired was, such measures as
would improve the condition of the Natives. And an excellent
commencement in that direction had been made in the despatch
which had just been sent out, directing the establishment of a
system of education. That despatch proceeded upon the right
principle of leaving the details of the scheme to be settled in India.
For it was utterly impossible for any set of men here to point out the
precise measures required for each district of a continent so
diversified in character as was Hindostan. It was, however, requisite
that that House should be kept informed of what was done, in order
that it might be able to guard against any neglect. It was much to
the credit of the Government that they proposed to give education
to all without distinction of sect or creed. He hoped that in the next
Session of Parliament the President of the Board of Control would
lay on the table of the House the Resolutions which he intended to
move some days before he made his speech. The Resolutions might
have been a mere matter of form this year, but it would not be so in
future. He could not agree with the right hon. Gentleman that it was
impossible to improve the revenue of the Presidency of Madras. On
the contrary, he thought that Colonel Cotton had conclusively
proved that, by the introduction of improved means of
communication, the condition of the people might be much
improved, and consequently the revenue materially augmented. Let
them consider what our facilities of communication had done for
England. Well, he believed that India presented capabilities for
equal improvement. Looking to the market which Australia would
now afford for Indian produce, he was much mistaken if the large
outlay on roads and canals which the Government had authorised
would not be attended with a most beneficial effect both upon the
credit of the country and of the revenue. In order, however, to
attain this end, it was very desirable that more attention should be
paid to irrigation than had 1474been done for some time past, and
that the Natives should be relieved from vexatious imposts like the
Moturpha tax, the payment for water, and the tax on the sinking of
wells. With regard to the military establishments of India, the right
hon. Gentleman had correctly pointed out that the Native troops
were numerous, and the British troops few. But he must press upon
the Government the necessity of doing justice to the former troops,
and to the 5,000 or 6,000 European officers who commanded them.
They had at present much cause to complain that very little
attention was often paid to their just claims. He must, in the most
emphatic manner, express his dissent from the doctrines laid down
by Lord Dalhousie with respect to the acquisition of provinces now
under the rule of Native princes. We had now a great and important
empire in India; we had 150,000,000 of people under our sway;
and he (Mr. Hume) wished to see our measures directed to the
improvement of the condition of our present subjects—to making
them rich and happy—rather than to the acquisition of further
territory. And more than that, he desired to see the Native princes
of India following our example, and improving the condition of their
dominions by the same measures which had been already
successful in ours.
said, there were many topics in the speech of the right hon. Baronet
the President of the Board of Control which called for observation,
but at that late hour he would only detain the Committee by
adverting to one or two of them. He admitted the great
improvement which had been made during the last twelve months
in the government of India, which in a great measure was due to
the influence and exertions of the right hon. Baronet. His minute on
education would be received with approbation from one end of the
country to the other; but, at the same time, he could not help
telling him that, with regard to the salt tax and the supply of salt to
India, he took an exceedingly erroneous view, and must have been
greatly misinformed upon this branch of the subject. He differed
from the right hon. Gentleman as regarded the state of the people
of Bengal, which he had been told by well-informed persons was as
bad as Madras. One great fact had come out from the statement of
the right hon. Gentleman, namely, that there was a deficit of
800,000l., and, therefore, it would be necessary to press upon
the 1475Government of India the necessity of retrenchment. One of
the most obvious ways in which this reduction of expenditure could
be effected, would be by making the regular cavalry irregular, which
would diminish the cost by one-half. The regular cavalry was quite
inefficient; and the only reason why it was kept up was, that the
Directors might have the opportunity of giving away the
commissions. The patronage of the Directors had been diminished;
but it had now to be divided amongst fewer persons, so that each
had more than fell to his share before the Charter Act of last year.
So bad was the Madras regular cavalry, that out of eight regiments
there was only one that had not mutinied or shot its officers. The
right hon. Gentleman should press the Directors to adopt the policy
of Sir Robert Peel, and to reduce or wholly abolish taxation upon the
chief articles of consumption of the great mass of the population.
§MR. J. G. PHILLIMORE
said, he must complain that the officers of the Queen's service were
by the existing rules placed in a most injurious and degrading
position. He could understand why a preference should be given to
officers in the Company's service; but this was not a matter of
preference, but of absolute monopoly. An officer in the Queen's
service might be a most able and distinguished man, but he was
shut out from all the honours and emoluments of his profession, as
long as there was any Company's officer that by any possibility
could be presented to them. The true remedy would be to
amalgamate the two services; for he thought that there should be
but one service, and that the Queen's.
1477
§House resumed.