increasing, the land tax alone remains stationary. In a fiscal point of view, then, there can be no fear for the success of a measure which would, while restricting the land tax, cause all other taxes to rise. Again, it is quite true that the value of the money will continue falling, and that prices of produce will rise more and more throughout these provinces. Thus the agriculturists will, in a short time, receive much more for their produce than they ever did before. On the other hand, the price of labour will rise, and that will greatly enhance the State expenditure. All the salaries and the establishments of the lower grades, at least, will be gradually raised, and the cost of the public works will be greatly enhanced. There might appear to be some risk then, if Government, while anticipating increased expenditure, were to limit the land tax, the main source of revenue. But it will, in reality, be quite safe to trust to increase of other taxes. It was declared, quite irrespectively of the Permanent Settlement, in the Joint Report of Colonel Elliot and Mr. Temple, that "it is rather from the miscellaneous taxes than from the land tax that increase of resources is to be expected."

4. A Permanent Settlement, then, so far as it can be introduced, will be, firstly, good for the people, and secondly, good equally for the State. The questions

remaining are-To what extent could it be applied? And When could it be introduced? Now, it is to be ever remembered that in these provinces the railways, the roads, and the navigation will certainly work great changes, while similar results are not here to be expected from irrigation. But this prospect exists here, in common with the rest of India, neither more or less. If, then, the prospect of material improvement does not bar the concession of a Permanent Settlement elsewhere, neither should it have that effect here. So far, then, as railways, roads, and navigation are concerned, the Central Provinces seem as much entitled to the advantage of a Permanent Settlement as other provinces of India. But further, it is

to be borne in mind that the amount of culturable waste in these provinces is enormous, and though this condition may exist more or less everywhere, it is peculiarly prevalent here. Not only are vast tracts of culturable waste vaguely claimed by parties with doubtful title, but within the legitimate boundaries of many, even perhaps the majority of estates and villages throughout these provinces, there is a large proportion of culturable waste. Now, although the inducement held out by a Permanent Settlement to reclaim the waste is one of the cardinal benefits of that measure, still it is but fair to the State that this privilege should be kept within moderate bounds. It would be right to allow every estate permanently settled a just margin of waste as a field for extending cultivation. But it would not be right to allow a Permanent Settlement to an estate which might include a large or indefinite area of waste, at present quite beyond the means of the owner to reclaim, but capable in the future of being rendered valuable by a variety of contingencies.

"5. Thus in these provinces there are many estates and villages, many entire tracts, and some entire districts, where a Permanent Settlement could not at present be properly introduced. Such districts are Raepore, Belaspore, Sumbulpore, Sironcha, Bhundara, Mundla, Seonee, Chindwara, Baitool. All these districts are in a transition state; and influence will, it is hoped, sooner or later, be brought to bear, which shall change the entire face of them.

"6. On the other hand, there are some districts in each of which a Permanent Settlement might be introduced into parts, but not the whole, with as much benefit and as much reason as into the other parts of India. And into these the introduction of the measure has been recommended. These districts are Nagpore, Chandah, Natchengaon (Kowta), Jubbulpore, Saugor, Dumoh, Nursingpore, Hoshungabad. All these districts (excepting Saugor and Dumoh) have large portions of their area

continuously and highly cultivated and subject to the same kind of development as the rest of India. The Saugor and Dumoh districts are more rugged, and do not possess long strips of cultivation like those just named; but in other respects their position is the same. As regards past assessments, some have been too high and others too low, but this circumstance is not peculiar to these districts, and is but too common everywhere. the other hand, for the Jubbulpore, Saugor, Dumoh, Nursingpore, and Hoshungabad districts, there are the fiscal data year by year during thirty-five years of British rule. For the Nagpore, Natchengaon, and Chandah, besides the British assessment, there are the data of the assessments made during the Regency exercised by Sir R. Jenkins and his officers.

On

"7. Such being Mr. Temple's views on this question, I am further to state that he sees no reason why they should not be applied in the course of the settlement now in progress. The state and circumstances of the operations connected with that settlement were reported at some length in my No. 111 of 30th ultimo; it is, therefore, unnecessary to enter into great detail on this point. The Officiating Chief Commissioner would merely submit that, should his Excellency the Viceroy in Council be pleased to approve, firstly, the general principles of the question as above laid down; and secondly, the application of them at once to such of the districts in the Central Provinces as are advanced enough to receive them, then he would solicit that sanction be accorded to the following specific

measures:

"8. (i.) That, when in the course of the present settlement it shall appear to the authorities engaged in making the settlement that an estate is, in the sense explained above, fitted for a Permanent Settlement, in such estate the assessment be made in perpetuity.

"9. (ii.) That one of the chief conditions of fitness for 1 To Government Foreign Department.

this boon be that at least three-fourths of the culturable area is under cultivation.

"10. (iii.) That it be competent for Settlement Officers to hold out a promise, in certain cases, that on estates attaining that advanced state in which three-fourths of the land is under cultivation a revised assessment be made and declared permanent.

"II. Thus, if a permanent assessment be really desired by the people, then this system would induce every landholder to increase his cultivation so as to secure the boon, and thus the greatest possible stimulus might be imparted to agricultural industry."

SETTLEMENT OF 1863-67.

While the question of a Permanent Settlement continued the subject of debate for many years, a new Settlement of the Central Provinces was commenced in earnest. The principles of this Settlement had been laid down, as long ago as 1854, by a Proclamation issued by the Government of the North-Western Provinces, for the Sagor and Narbada Territories which were then under that Government. No action had been then taken. It was after the formation of the Central Provinces in 1861 that the old Proclamation of 1854 was taken as the basis for a Settlement of the Land Revenue throughout those Provinces.

The main principle laid down by this Proclamation, and afterwards accepted for the Central Provinces generally, was the recognition of proprietary rights in the Malguzars or revenue-payers. This has often been described as the conferring of a new gift; but it was a new gift only in so far as it admitted, in theory, a right which was enjoyed by the Malguzars in practice. "I do not know," said Mr. Chisholm, one of the ablest Settlement Officers of the time, "any rights appertaining to landed property which the Malguzar individually, or he

and his sharers jointly, did not exercise, except the power of sale and mortgage. He could not transfer his village, merely because the Native Government, from a shortsighted policy, declined to recognise any absolute right in land; but while he remained in possession, he was absolute as regards all the internal arrangements of the villagesettling cultivators, dispossessing them, increasing rent, planting groves, constructing tanks-in fact wielding all the authority in the management of the village which appertains to holders elsewhere under the most indisputable titles."

Nevertheless it was a great gain when this right, which had been exercised in practice, was expressly admitted; and when power was also given to the Malguzars to sell or mortgage their property. "It is now the intention of Government," said the Proclamation of 1854, "to make another twenty years' settlement, and to confer the Zemindari right on such persons as may appear to have the best right to such a gift." And it was added in the same Proclamation: "Every proprietor shall enjoy the free right of transfer or division." It was the pleasant duty of Richard Temple to carry this principle into operation in the Settlement which he carried through.

The proprietary rights of Malguzars having been recognised, the next question was: What portion of their rental should be claimed as Government revenue? The Saharanpur rules had laid down that, in Northern India, the land revenue should be limited to one-half of the rental; and this rule had been extended to the Sagor and Narbada Territories. But what was the rule for Nagpur which now formed the larger portion of the Central Provinces ?

For Nagpur, the Government of India had sent directions 2 to leave the Malguzars from 35 to 55 per cent. of the gross rental. And it was added that "the Governor

1 By N.W.P. Government Order, No. 74, dated February 16, 1855. 2 By Letter No. 2279, dated June 28, 1860.

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