use of the subject races; we make none: it is the jealousy of the middle-class Briton, the hungry Scot, that wants his salary, that shuts out all Native aspiration. . . . The consequences will be terrible.'

Morally, because of the literally besotted conceit which, in plain daylight view of innumerable facts to the contrary in recent past history and in present experience, under our own eyes, has determined that there is nothing good in Indian character, that there is nothing beneficial in present-day administration, which does not owe its being to us; and, because of our insular national pride, we are not willing to share our rule and governance with a dark-skinned people. Dark face-black heart. Dark skin-necessarily mental inferiority; dark skin-nobility of character and self-sacrifice, with other of the higher qualities of soul and mind, impossible; dark skin-business energy, commercial forethought, wholly wanting, else, it is argued, the development of India would be ensured with Indian capital. The last is a particularly cruel and stupid thrust, since we have 'drained' the country of all its spare capital.

These are among the reasons why India is poor, and, being poor, is-by the standard of the age-necessarily and irredeemably inferior.

Long prior to the time when five millions sterling represented the total amount of trade between England and India, the drain,' as its inevitable consequences were realised, was the subject of adverse comment. At that time 'India' meant the Lower Provinces of Bengal, several towns on the Coromandel coast, including Chinnapatnam (Madras), with much of the Hinterland, and the island of Bombay with surrounding territory and a few centres of trade such as Surat. The Bombay districts were acquired later-from the Marathas and others. When sovereignty was assumed in Eastern and Southern India the question was considered: 'In what Manner it

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may be most expedient to exercise it for the permanent Benefit of the governing Power.' The 'Manner' would be to commit

'the internal Administration to one or more considerable Moormen; the Moormen chiefly should be employed in the Offices of Government; the cultivation of the soil should be left with the Gentoos, whose Property it is, and the Revenue fixed for ever'; ... the governing Power should stand paramount, and hold the Sword over the rest, watching the Administration of every subordinate Department, content with a gross but moderate Tribute proportioned to their necessary Expense, and guarding the Country from being ruined in Detail by Europeans. On these Terms the Natives should be left undisturbed in the full Enjoyment of their own Laws, Customs, Prejudices, and Religion. On these Terms they would as readily submit to our Dominion as to any other, nor could it ever be lost but by foreign Conquest.'

This was the highest wisdom of the eighteenth century concerning England's connection with India. It was very high wisdom indeed. Those dozen lines are the quintessence of a policy by which alone one country can successfully and prosperously hold rule over another, if, indeed, the achievement, at any time and in any circumstances, be even approximately possible. It is the policy which prevails in the Australian Commonwealth, the Dominion of Canada, the Colonies generally, with this exception-from none save from India is a Tribute exacted. Only as we go back to that ideal for India and realise it to the full will prosperity ever return to that country.

The easy conquest of Hindustan by the Muhammadans is accounted for by the Moderation of the Tribute imposed and the Simplicity of their Method of collecting it.' 'In general, they introduced no Change but in the Army and in the Name of the Sovereign. With Respect to the Collection of the Revenues, the System of the present

1 This extract (p. 915), and subsequent extracts, are from the 'Reports from Committees of the House of Commons,' vol. v., 1781-82. Printed 1804. The capital letters and the italics are those of the Parliamentary publication.

Government is upon Principle directly the reverse of what it ought to be, and I believe, such as never was adopted by any other Government.' I

Then, as now, the eye of prophecy looked backward.' To properly forecast the future the writer glanced at what had happened before his time. 'It cannot be disputed,' he said, 'that Bengal was in a much more flourishing State during the last Century than it has ever been under the English Establishment.' The principle on which Akbar secured his conquest' was to conciliate the Minds of the native Hindoos, and to unite them as much as possible to his Person and Government: some he employed in the highest Offices of the State; with others he connected himself and his Family by Marriage.' When the East India Company took charge of Bengal as a governing power it was after

a quick Succession of Wars and Revolutions, a Foreign Influence prevailing both in Matters of Government and Commerce, the drain of large Sums of Money carried away by Individuals, or by the Company.' In such a state of poverty and decay, 'instead of Imports of Treasure from Europe, a Tribute was actually required from hence. Large sums in specie were actually sent out.'

'The Wealth formerly enjoyed by the Natives, and diffused by an equal and constant Circulation through the Country, was engrossed by Foreigners, who either exported it directly, or, by supplying the other European Factories, made it necessary, even for them, to import Bullion, for providing their Investments.'2 Other portions

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'Instead of leaving the Management to the natural Proprietors of the Lands, and demanding from them a fixed Portion of the Produce, we take the Management upon ourselves, and pay them a Tribute: Government stands in the place of the Zemindar, and allows him a Pension.'

2 Philip Francis, the author of this valuable State paper, exceeded in value by few—if any-State papers written concerning India, was not alone in the views he expressed. Many others wrote in a similar strain. Notably in a communication to the President of Council seven years before Francis wrote, it was remarked: 'It must give Pain to an Englishman to have Reason to think that, since the Accession of the Company to the Dewannee, the Condition of the People of this Country has been worse than

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of this powerful exposé of the situation in Bengal indicate special clearsightedness. But the policy was too wise for adoption. After consideration, with one exception, other counsels were followed. That exception was the establishment of a Permanent Settlement in Bengal. This brought some measure of prosperity to these regions. In all other respects that was done which has caused lasting injury to India and has brought discredit upon English fame.

The Investment was continued. Even if Bengal, before our Accession to the Dewannee, did suffer somewhat from the diversion of a portion of its revenues to the Mogul Emperor, it appeared that the Company have levied higher Rents from this Country whilst [it was] labouring under the greatest disadvantages, than it ever paid to the Emperors in its most flourishing Condition, when the Principal Part of the Revenues were spent within the Provinces, and the Remainder went no farther than Delhi.' It was equally apparent that, under our Administration, the Desire of Increase, invariably and inflexibly pursued, is the Ruin of the Country, and, ere long, will be found the worst Economy.'

Ten years later, the greatest panegyrist of British rule in India-and, at the same time, himself the worst disparager of the Indian people known in British-Indian literature-Charles Grant, of the India House, was constrained to admit: We apply a large portion of their annual produce to the use of Great Britain.'

it was before; and yet I am afraid the Fact is undoubted; and I believe has proceeded from the following Causes: the Mode of providing the Company's Investment; the Exportation of Specie, instead of importing large sums annually; the Strictness that has been observed in the Collections; the Endeavours of all Concerned to gain Credit by an Increase of Revenue during the Time of their being in Station, without sufficiently attending to what future Consequences might be expected from such a Measure; the Errors that subsist in the Manner of making the Collections, particularly by the employment of Aumils: These appear to me the principal Causes why this fine Country, which flourished under the most despotic and arbitrary Government, is verging towards its Ruin while the English have really so great a share in the Administration.'

That there is any drain' from India to England is, as I have shown in preceding chapters, frequently denied to-day. It was, honestly enough, recognised when, in its earlier stages, it was a comparatively small matter (to us, but to the men of that day great). There seemed then to be no special desire to hide unpleasant truths under a guise of fair-seeming.

The material drain' has robbed India of the capital which hitherto had been available for the promotion and strengthening of industry. Without capital no industry, on other than the most primitive of bases, can exist. Two passages from Mill's Political Economy,' vol. v., will suffice for the present argument:

While, on the one hand, industry is limited by capital, so, on the other, every increase of capital gives, or is capable of giving, additional employment to industry, and this without assignable limit.'

'What supports and employs productive labour is the capital expended in setting it to work and not the demand of purchasers for the produce of the labour when completed. Demand for commodities is not a demand for labour.'

Indian imports and exports are, elsewhere in this work, set out in detail and subjected to a more or less searching analysis. They need not be repeated here in aught but total amounts :

Or, Three Hundred Millions of Rupees-more than
One Rupee per Head from All India.

That is the balance, in slightly varying amounts, of