The way in which the expenses were arrived at was to ascertain, separately, what extent of wet land and what of dry could be, under the ordinary conditions of the district, cultivated by one plough and one pair of bullocks.

The method of calculation varied according to the description of crops grown and of culture, as well as according to the practice of making the various payments in the district. In some these are made in grain, in others in money, and in some in both grain and money. The payments made in grain were converted into money at the commutation price adapted for the settlement.

The cost of bullocks and of the implements of husbandry was distributed over the number of years during which they were estimated to be serviceable, and the other items were calculated for each year. Suppose the commuted money value of the gross produce per acre of land was Rs.27 9a.

A sixth of this (= Rs.4 9a. 6p.) was deducted to compensate for vicissitudes of the season;

leaving Rs.22 15a. 6p.;

from which again was deducted Rs.11 for cultivation expenses; leaving the net value of Rs.11 15a: 6p.;

of which half (= Rs.5 15a. 9p.), or say Rs.6, was taken as the

Government share.

The present practice of the Settlement Department is not to work out separately the cultivation expenses for each district dealt with, but to adopt those arrived at for the neighbouring districts.

July 9, 1901.

If any reader has omitted to peruse the foregoing most valuable documents, and this paragraph should catch his attention, I beg him to turn back the pages and read them. Their intrinsic interest is so great, they throw so clear and vivid a light upon the Indian Governments as practical land stewards, as well as exhibit the actual position of the cultivator, that no one, wishing to really understand the ryot's position, may pass these 'human documents' by unread and unpondered.

THE NEW YORK PUBLIC LIBRARY

ASTOH, LENOX AND TILDEN FOUNDATIONS.

Total Income of Country: S, + S2 + S3 — S4.

Money Value of Crops not Accurately Obtainable in India.
Therefore Government Revenue (its Ratio Ascertained) Made

the Basis of Calculation.

Reply to a (possible) Rigorous Critic as to How so Many
People Still Continue to Survive, the Average Visible
Income being Below Maintenance Line.

The chapter which follows, the longest in this work, consists mainly of an estimate of the whole income of India in an ordinary year. From the estimate thus made the average income of every Indian is obtained, and, as the Government of India professed to take a like course twenty years ago, a comparison between the results of to-day and of 1882 is made. A pending discussion, in certain English reviews, on a cognate subject affecting the detailed income of the United Kingdom, which is proceeding whilst these pages are passing through the press, indicates the desirability of my stating explicitly the principle upon which my calculations are made. It appears that there are in use two or three mutually exclusive methods of reckoning a nation's income. The great point of difference seems to be this: Ought income derived from stocks and shares earning dividends in the same country, and from professional and clerical services, to be added to the total value obtained from the products of the soil-surface-planting or growth and mining—and from the value imparted to those products by agricultural and industrial labour? In the opinion of the present writer the answer is in the negative. Those incomes ought not to be included, seeing that they are paid from ✔ the respective products described. To include them would be to reckon a portion of the total income twice over, and thus vitiate the result.

The diagram and explanation which face this page are