the Government apply to the situation even the drastic remedies contemplated by this Bill. I do not know if we shall succeed in overcoming the evil altogether. Even if it lies dormant for a time, there is much in the situation itself which will constantly tend to stir it into fresh activity. I have already said that several causes have combined to bring about the present state of things. It is of course impossible to go into all of them, but one of them may be mentioned-it is the writings in a section of the Anglo-Indian Press. My Lord, I doubt if many Englishmen realise how large a share these writings have had in turning so many of my countrymen against British rule. The terms of race arrogance and contempt in which some of these papers constantly speak of the Indians and specially of educated Indians cut into the mind more than the lash can cut into the flesh. Many of my countrymen imagine that every Anglo-Indian pen that writes in the Press is dipped in Government ink. It is an absurd idea, but it does great harm all the same. My Lord, I feel bound to say that this Bill by itself cannot achieve much. It is even possible that the immediate effect of its passing will be to fill the public mind with a certain amount of resentment, And unless the powers conferred by it are used with the utmost care and caution, the evil which they are intended to combat may only be driven underground. Force may afford temporary relief, but it never can prove a permanent remedy to such a state of things as we have in this country. It is only in the co-operation of all classes and the steady pursuit of a policy of wise conciliation on the part of Government that the best hopes of thoughtful men on both sides for the future of this land must lie.

INDIAN TARIFF (AMENDMENT) BILL.

[On 4th March 1910, the Hon'ble Sir Guy Fleetwood Wilson, Finance Member of the Government of India, presented the Report of the Select Committee on the Indian Tariff (Amendment) Bill, and His Excellency Lord Minto, who was in the chair, having suspended the rules of business, the Report was taken into consideration immediately. The debate that followed was opened by Mr. Gokhale with the following speech :-]

My Lord, before the Council proceeds to a consideration of the several amendments of which notice has been given, I would like to make a few observations on the general financial situation which in the opinion of the Hon'ble the Finance Minister has necessitated the imposition of fresh taxation. Hitherto fresh taxation has been associated in our minds with war or famine or a sudden increase in military charges or a falling exchange. This is the first time, so far as I am aware, when it is proposed to levy additional taxation in a normal year, free from any specially disturbing factors. The Finance Minister has told us that opium and East Bengal are responsible for the new burdens sought to be imposed upon the country. He expects the opium revenue for next year to fall short of the amount realised during the current year by £872,000 or about a crore and thirty lakhs; and he is called upon in addition to find an extra quarter of a million, or thirtyeight lakhs, to relieve the embarrassment of the Government of East Bengal and Assam. In the Finance Minister's opinion, therefore, the principal share of the responsibility for the present difficulty falls on opium. Now, my Lord, I think it is necessary to protest against this view. Even assuming that the estimate of opium revenue for next year is not an under-estimate, we still find that the net receipts budgetted for under opium are 3 millions sterling which was precisely the amount of the net opium revenue realised in 1907-08, when there was no

deficit and when the policy of gradually extinguishing the opium revenue in ten years was laid down. In announcing that policy, His Honour Sir Edward Baker, who was then Finance Minister, expressed himself as follows:

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Twenty years ago or even less, the prospect of losing a revenue of five and a half crores a year would have been a cause of very grave anxiety. Even now, if the whole or a great part of the revenue should be struck off at a blow, the dislocation of our finances would be serious and might necessitate recourse increase of taxation But if, as we have a clear right to expect, the transition is effected with a due regard to our convenience and spread over a suitable term of years, the consequences may be faced if not with equanimity, at least without apprehension,

And again :-

The point which I wish to emphasise at present is that there is no need for despondency and that if all goes well, there is nothing worse to fear than the absorption for a few years of the means of affording further relief to the taxpayer and of incurring useful expenditure for the development of the country.

Sir Edward Baker was thus prepared three years ago to face the loss of a tenth part of the opium' revenue of 1907-08 every year without having recourse to extra taxation, if the circumstances of the country continued normal. And the Government should have been prepared to-day to part with three-tenths of three and a half millions, that is, about a million sterling. Instead, however, of the net opium revenue being only 2 millions sterling, the Hon'ble Member has actually budgetted for 3 millions for next year, and yet he throws on opium the main responsibility for his additional taxation! No, my Lord, if fresh taxation has really become necessary, which I, for one, venture to doubt, we must look for an explanation deeper. It is true that Eastern Bengal is now to have 38 lakhs a year more from the Imperial Government, which means that the partition of Bengal is now going to affect the whole country materially as it has already done politically. But as our normal growth of revenue is about a crore and twenty lakhs as once estimated by Sir Edward Baker, it is clear that the increased allotment to Eastern Bengal and Assam need not by itself have led to extra taxation. understand what has really brought about a deterioration

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in the financial position of the country, we must go back to the year 1907-08, and compare the figures of revenue and expenditure for that year with those in the budget proposals for next year. Taking both receipts and charges net, as given in statement E-and that is the best thing to do for purposes of a real comparison-I find that the total net receipts under major revenue heads for next year are estimated at 3 millions sterling more than for 1907-08-the opium receipts being the same for both years, namely, 3 millions, but land revenue being two millions more for next year and there being a total increase of another million under other heads. I also find that as against this increase of 3 millions, there is a deterioration, under railways of over a million, an increase of no less than 101 millions under net charges of civil departments, nearly half a million under military services, and over half a million under interest, telegraph, minor and other heads. To my mind, therefore, it is clear that the main responsibi lity for our present difficulties rests on the shoulders of the civil departments and the Railway Board. My Lord, I cannot help saying that an increase of nearly 2 millions sterling in the net charges of the civil departments in three years is a phenomenal increase and needs explanation. I will not say that I am much surprised, for during the last few years there was hardly ever a day when we did not hear of higher scales of pay being sanctioned for the superior officers of some civil department or other. The operations of the Railway Board, too, which called forth a sharp remonstrance from His Honour the LieutenantGovernor of Bengal last year, have had the inevitable effect of throwing on the resources of the Government a steadily increasing burden of working expenses. In addition to these two causes, I am of opinion that the prevalence of high prices in the country is bound to affect the Exchequer adversely in two ways. First, the Government, ast the largest purchaser in the country, has to pay more for its purchases, and secondly, the pressure of high prices on the resources of the people tends to diminish the revenue contributed by them to the Government under several heads. I think, my Lord, that all these questions need a careful investigation. I had hoped, from the observations

made by the Finance Minister in his Financial Statement last year, that he would not turn to fresh taxation until at least a policy of severe retrenchment had been carried out in all departments. It appears, however, from the present Financial Statement, that the Hon'ble Member has almost given up the unequal struggle. The forces that make for economy in this country are extremely weak, while those that make for continuous increases on expenditure in different departments are enormously strong, and one of the greatest needs of the country is to devise measures which will effectively safeguard the interest of economy.

My Lord, the proposed enhancements of duty under the Tariff Bill are expected to bring in an extra million sterling or a crore and a half of rupees, half of which will be contributed by tobacco and liquors and the other half by silver and petroleum. Now, I strongly hold that there is really no need for this extra taxation. In the first place, if the circumstances of the country continue normal, the estimates for the next year framed by the Hon'ble Member will be found to be too cautious. Under salt, for instance, I am confident that the increase will be considerably more than what has been budgetted for. Again, those who are well acquainted with the conditions of the opium trade are clearly of opinion-my Hon'ble friend Sir Sassoon David is a recognised authority in regard to that trade and he strongly holds the view-that in view of the special circumstances of the Chinese market, the rate of Rs. 1,750 per chest of opium which has been taken for next year is much too low and that Rs. 2,000 a chest will be a safe estimate. Lastly, I wish to draw the attention of the Council to the fact that a sum over three-fourths of a million sterling has been provided in the budget for the redemption of railway debt out of revenue. My Lord, I consider that this is an amazing thing to do, absolutely unjust to the tax-payers, when the Finance Minister comes forward with proposals for extra taxation on the ground that the money that will otherwise be raised will be insufficient for current purposes. Railway debt is productive debt. Even now, in spite of the fact that the Railway