troops in India were 45,522; by the last returns they were 91,590. The Native troops on the 1st of January, 1857, were 232,224; by the last returns they were 243,956. So that the European forces in India have been doubled, and the Native troops, notwithstanding all that has taken place, have been of necessity rather augmented than diminished. But it is necessary to say that many thousands-I am not prepared to state the precise number-who appear as part of the Native army, are local levies, raised to meet the emergency of the moment, and should not be considered as forming a portion of our permanent force. Sir, I come now to an important branch of my subject-the present state of the Indian debt, and the manner in which it has been affected by late events. I may mention, for the sake of being intelligible, that, when I speak of the Indian debt, I include not only the home debt of India, but all debts bearing interest for which the revenues of India are liable. It is common to hear of the rapid increase of the Indian debt, and perhaps the House may not be aware that, however great the increase of that debt absolutely considered may be, yet relatively-which is a fairer way of testing it to the amount of the revenue upon which it is a charge, there has been, up to the year 1856-7, no increase whatever since the beginning of the century. That can be shown by a few plain figures. In 1800 the debt was £16,600,000, and the revenue £9,200,000. In 1810 the debt was £29,200,000, and the revenue £16.600,000. In 1820 the debt was £37,000,000, and the revenue £21,300,000. In 1830 the debt was £45,000,000, and the revenue £21,900,000. In 1840 the debt was £33,800,000, and the revenue £19,500,000.* That reduction of debt was due to the application of the commercial assets of the Company, for the purpose of paying it off. In 1850 the debt was £51,900,000, and the revenue £25,800,000; while in 1856-7 the debt was £55,900,000, and and the revenue £33,300,000. The House will see that only once in all that series of years has the debt exceeded the amount of two years' income. It was below that amount at the be *The decrease in the revenue observable between 1830-31 1840-41 is nominal, arising from the use of high rates of exchange in calculating the Indian currency at the former period, and the adoption in the Parliamentary accounts of a lower rate, equal to 1s. 10d., on the introduction of the Compauy's rupee. ginning of the century; it was below it in 1856-7; and it is remarkable to see, generally speaking, how nearly the proportions of the two remain the same. Since the late outbreak the state of affairs has become altered. The Indian debt, including every liability, bearing interest, of which up to the present time we are aware, but not including an item to which I shall refer by-andby, is £74,500,000. Of that amount the home debt is £15,000,000, and there has been raised in India £59,500,000. The amount so raised in India is held by Natives in the proportion of two-fifths to three-fifths held by Europeans. From the total amount of the debt I have omitted the item of deposits, amounting to £7,000,000, because these bear no interest, and part of them will never be claimed. I may advert here to a measure, sanctioned in the course of last year, for allowing the payment in England, by bills upon the Government of India, of the interest of the Indian debt. That measure was adopted at the instance of the Chamber of Commerce in Calcutta, and of mercantile bodies here. It was recommended to us in strong terms by the Government of India, on the ground that it would tend to in. crease the value of our securities. Now, when that measure is criticised, it is common to say that it will have the effect of enabling the Natives more readily to get rid of their investments in our debt, and inducing Europeans to take their place, and that thus the Government of India will lose the hold which it at present possesses upon the interests and fidelity of Native capitalists. I do not believe that, even as a matter of argument and theory, that criticism is well founded. I rest my answer to it upon this-that whatever brings the competition of Europeans into the Native market necessarily has the effect of raising the general credit of the Government, and therefore of increasing the value of its securities to the Natives who hold them. Nothing will induce Natives to lend their money freely to the Government so much as seeing that Englishmen resident in this country have confidence in Indian securities, and the contrary opinion would undoubtedly proBut, duce distrust in the Native mind. to turn from theory to what has actually happened, we find that, though the time during which this measure has been in operation has been very limited, the pro portion of Native subscriptions, so far from diminishing, has rather increased. Between the 2nd of June and the 21st of December last, a period of about seven months, the European subscriptions amounted to £3,229,000 and the Native to £2,412,000, a good deal more than the general proportion which has hitherto existed-namely, two-fifths for Natives to three-fifths for Europeans. I may here mention the total amount of debt incurred by the Government of India since the 1st of May, 1857; in other words, since the outbreak of the mutiny. There has been raised in India by the 5 per cent loan £8,712,000, the home bond debt has produced £3,105,000, and the debenture loans £7,997,000, giving a total of £19,814,000. Now, reverting from the present to a period more remote, it is worth notice how materially, in the course of the present century, the credit of the Indian Government has improved. In 1800, upon the comparatively small amount of debt which then existed, the Indian Government had to pay 8 per cent. The average amount now paid upon the whole of the present debt is little more than 4 per cent. It ought to be remembered, when we are considering the question of the future solvency of the Indian Government, that its debt of £74,500,000 has been incurred in what has been little else than one constant series of wars. There was the war in Mysore, at the close of the last century; there were the Mahratta campaigns; there was the Pindarrie war; the war in Nepaul; the first Burmese war under Lord Amherst, which alone cost £15,000,000; the Affghan expedition, said to have cost £20,000,000; the wars in Scinde and Gwalior, the two Punjab campaigns, a second Burmese war, and now we have the present insurrection. I shall not go into the question how far all of these wars were inevitable; but I say that, when we compare the amount of liability incurred in India, in consequence of that almost uninterrupted succession of wars, with the financial difficulties of almost any European State, after half a century of peace, our only wonder will be, not that the Indian debt has reached its present amount, but that it is not a good deal larger. Let me now, Sir, call attention to a topic which ought to be considered in connection with this subject-the position of the English Exchequer in regard to Indian debt. I am aware that the uniform policy of the Parliament and the Government of this country has been to decline all responsibility in regard to the debt of India, and to hold it as a charge only on the Indian Exchequer. Dealing with the present state of affairs, I may say at once that I am not going to recommend any change in that policy. I know well the alarm which any such proposition would create, and I know the refusal which it would inevitably receive. But this is a question which will recur again and again, and which will have to be considered in the future as well as in the present. Observing, then, that I do not speak with any reference to practical action at present, I would ask the House seriously to consider how far, looking at the fact that more than £50,000,000 has been contributed in aid of the Indian Government by English capitalists, it would be morally possible for this country altogether to repudiate the Indian debt without shaking its own credit? I would likewise ask the House to bear in mind that, if ever the time should come when the established policy of Parliament in this respect should undergo a change, and when an Imperial guarantee should be given for these liabilities, that guarantee would operate to reduce the interest paid upon the Indian debt by not less than £750,000, or even £1,000,000, which, formed into a sinking fund, would go far to pay off the whole. At present, India on the one hand is paying a great deal more in the way of interest than with the assistance of this country she need pay; and we, on the other hand, are apt to consider that, as we have nothing to do with it, the amount is indifferent to us, though, after all, it is a matter of doubt whether practically we are so entirely free from all responsibility as we suppose. I will ask the House now to consider what is the amount of burden to which the people of India and the people of England are relatively subjected by their debts. You may take two tests by which to ascertain that. You may take first-and probably it is the fairest test-the ratio which the interest paid bears to the total revenue. That interest in India is about £3,500,000 on an income of £33,000,000, or little more than ten per cent. ; in England the proportion of interest on debt to the gross revenue is nearly two-fifths, or forty per cent. comparison is taken, too, at a most unfavourable time, when England has been enjoying an almost unbroken peace of fortyfive years; whereas in India there has been nothing but a series of wars. Looking at This it in another light-the pressure on the population-while the amount per head on the 130,000,000 of people included in the area of our Indian taxation is not more than 143., in England it is £28 per head. I do not mean to compare the material resources of the two countries; I know well the difference between them; but, looking to the future as well as the present, wherever you have what you have in India, a fertile soil and an industrious people, I say you have there the material out of which national wealth is produced. Therefore, when we are told of the comparative poverty of the Indian people, it is a fair question to ask whether the continuance of that comparative poverty is ne cessary. I wish now to show how far at the present time, and for some time past, the development of the material resources of India has proceeded, and I cannot but think that upon that subject the public mind is not well informed. I take the last twenty years, beginning from 1837, and I divide them into periods of five years each. Taking the aggregate imports and exports for that time, I find that, in the first period of five years ending 1842, the aggregate imports into India were £43,500,000; in the next period, ending 1847, £62,500,000; in the next period, ending 1852, £69,500,000; and in the last period, ending 1857, £101,500,000. That estimate is taken before the commencement of the insurrection, so that it cannot be affected by the import of increased supplies for the large reinforcements of European troops which have lately been sent out. Taking next the aggregate exports from India, I find that they were, in the five years ending 1842, £63,200,000; in the five years ending 1847, £83,378,000; in the five years ending 1852, £91,000,000; and in the five years ending 1857, £112,700,000. We have, therefore, these plain general results, that within the last twenty years the exports from India have nearly doubled, and the imports into India have more than doubled. I have not been able to ascertain as exactly as I could have wished the comparative rate of increase in the exports and imports of the various European nations, but I believe I am not wrong in saying that the increase in the case of India during the last twenty years is in a greater ratio than that of any European nation except England and France. It would not be just to compare India in this respect with the United States, or with the larger British colonies, because you have there a constant increase of population due to emigrants from Europe. Take another indication of commercial progress in India the tonnage of vessels entered inwards and cleared outwards at the various ports of that country during the same period. I find that this aggregate tonnage in the five years ending 1842 was 10,700.000 tons; in the five years ending 1847 it was 12,700,000 tons; in the five years ending 1852 it was nearly 16,000,000 tons; and in the five years ending 1857 it was just 19,000,000 tons; showing an increase of nineteen to ten, or nearly double, in the twenty years. These returns, I may add, include the coasting trade. I select another test, not so general and comprehensive in character, but selected because it bears upon a question upon which a great deal is said at present, the amount of cotton sent from India to England. In the five years ending 1842, the amount was 352,000,000lbs.; in the next five years, 358,000,000lbs.; in the next five years, 494,000,000lbs. ; and in the five years ending 1857, 863,000,000lbs. ; showing an increase of export in that very item of cotton about the deficiency of which so many complaints are made, in a proportion not less than five to two. Going a little more into detail, and taking a more limited and recent period, the annual average increase of imports in the last five years into the Bengal Presidency has been £956,000, and of exports £445,000. During the last five years the annual average increase of imports into the Bombay Presidency has been £959,000, of exports £518,000. Taking the town of Calcutta alone, and this perhaps is the most remarkable instance, I find that the imports there were in 1852-3, £6,387,000; and in 1856-7, £13,959,000. The imports into the town of Bombay have increased from £7,000,000 in 1852-3 to £11,732,000 in 1856 7. Summing up this part of the case, and taking all the tests together, I find that the trade of one capital has more than doubled in five years, and that of the other increased by one-half. The cotton supply has increased at a ratio of five to two: the tonnage and the exports have nearly doubled, and the imports have more than doubled. With these results, therefore, we are justified in saying that the producing and mercantile interests of India have not been so entirely neglected under the Company's administration as it has been sometimes the custom to assert. has been paid up; that the total amount of interest for which we shall become liable is £2,000,000, and that at preNow, Sir, from the question of past in- sent the interest paid is £1,000,000. crease in trade, I proceed to consider what But I do not believe that those liabilities is to be done for the development of the can be regarded in any sense as burdens future trade of India, and first of all I shall upon the Government of India. Setting notice the extent to which, and the system aside entirely the enormous indirect adunder which, public works are being carried vantages which will eventually accrue on in India. We are often asked when we to the Government from opening up the speak of an average annual expenditure of country, I believe it will be found that on £2,000,000 upon these works, what result the working of the lines themselves there have you to show? In some degree the will be rather a gain than otherwise. figures which I have quoted will supply Lord Dalhousie, the author of the railan answer to that question, but with re- way system in India, to whose energy and gard to the much larger portion of these talent it owes its development, has reworks we are in the position of the culti- corded his opinion that, when once a line vator at this period of the year-the seed is finished, the Government will probably is sown, but the crop is not yet above not in any case be called upon to pay ground. Not only has Government ex- interest upon these guarantees-that is pended of its own revenue £2,000,000 to say, his estimate is that, in every yearly for many years past, but it has case, the profit upon these lines will exceed encouraged private enterprise on an even 5 per cent. I have endeavoured to ascergreater scale. To deal first with that tain what materials we possess for forming a class of works upon which the largest conclusion upon the subject from the exexpenditure has been incurred, I will perience we have. Those materials as yet give you a few figures with regard to are very scanty. In the Bengal Presidency the railways. The length of lines pro- 121 miles of railway, which are open from jected and sanctioned is 4,847 miles; Calcutta to Raneegunge, pay 7 per cent. the length in course of construction, By the last returns the traffic upon that 3,038 miles; and the length opened for line has nearly doubled since 1856, though traffic is 559 miles. In the course of the it must be admitted that that increase year, there will be 747 additional miles is in great measure due to the conopened; in 1860, 279 miles more; in veyance of troops and military stores. 1861, there will be in addition 2,076 In Bombay, upon 88 miles of the Bombay miles opened thus, in three years more, and Baroda railway, which have been if our calculations are verified, which opened, the returns are 4 per cent. I have no reason to doubt, more than With respect to the Presidency of Madras I 3,600 miles of railway will be open. I do not know what the returns are; but it think that this state of things, show- is fair to bear in mind that we are not at ing as it does that, for every mile present in a position to judge of what the of railway open, there are six miles receipts may ultimately be; because, when under construction, justifies the state- only a small section of a line is finished, ment which I made to the House the and it ends abruptly, perhaps, in a jungle, other night, that we are now arrived just instead of having an important town for at that very point of time, when the its terminus, we cannot expect that the outlay on these works is the greatest, traffic will be anything like what it will and the return upon them is the least. become when the line is finished from end Now, let us see what is the amount to end, and great inland markets are by its of liability incurred by the Govern- means connected with the coast. On the ment of India on account of railways. The land is given by Government, and a guarantee of interest in almost every case, at the rate of 5 per cent, is also granted. The total capital guaranteed is £39,731,000. Of that amount £19,221,000 has been paid up. We may say in round numbers, therefore, that the total amount of our liabilities for these guarantees is nearly £40,000,000, and that one half East Indian line, the cost of construction has averaged £11,500 per mile, which is about one-third of the English average; but then the land has cost nothing. When this system of railway communication which is now being carried out shall be completed, we shall have four great arterial lines of railway, opening up the whole of India. One from Kurachee to Hyderabad will connect the Indus with the sea, opening up the Punjab and Central Asia to trade, period for completing which is spread over and will continue from Mooltan, where three or more years; fourth, plans have navigation ceases, to Lahore. Another been directed to be prepared for improving will descend from Lahore, through the the harbour of Sedashevaghur, south of North-West Provinces, down to Calcutta, Goa, and connecting it with the country and on eastward to Dacca. A third, inland; fifth, a plan for rendering the traversing the centre of the continent, Godavery navigable for a distance of 300 will link Calcutta with Bombay; and a miles, is referred, with recommendation, fourth, with many branches, will unite to the Government of Madras; and, Madras and Bombay, and thus open up sixth, there has been a considerable the entire south. I have stated before outlay upon small steam cargo-barges that it is more important for the Govern- and tugs for the navigation of the ment of India to complete the under- Ganges and the Indus-fifteen vessels in takings which they have commenced than all. I do not mention smaller undertakings, to embark in new ones. But upon new which, though of local importance, are of works something, although not much, no general interest; but there are two has been done. Last July a branch line plans which have been taken in hand by was sanctioned, connecting Bangalore with the Government which are of so important Madras. Bangalore is an important mili- a character that I am bound to call attentary station; it stands on high table land; tion to them. One is the establishment of the climate is healthy, and it opens large telegraphic communication between this and attractive tracts to settlers. In No- country and India. After the failure of vember also a guarantee was given for the the experiment with the Atlantic cable, it formation of a line from Calcutta to Mat- was impossible not to feel that the underlah, a distance of only 25 miles, which will taking presented a greater amount of diffi give to Calcutta a new port, and will effect culty and a greater risk of failure than had a considerable saving in time in getting to been at first anticipated. But, whatever the sea. Surveys also are being com- the difficulty or the risk of failure, still the menced for trunk lines through Oude and object appeared to the Government to be Rohilcund by the Oude Railway Company. one of so much importance, and the saving A line from Coringa to Berar also has been that would be effected in every way so great, projected, and is referred to the Govern- that we thought it to be our duty to incur ment of India. It will open up the that risk, and the consequent expenditure. cotton districts; the only objections to A guarantee of 4 per cent upon a capital it are, that it will be a competing line of £800,000 was accordingly given, and with the navigation of the Godavery, operations were begun at once. I am told and that the district through which it that the cable is nearly ready, and the propasses will be opened to the Bombay side moters anticipate that they will be able to by another line. I mention these because lay it as far as Aden by June next. Bethey are the principal works which have yond Aden, where the line touches the been brought under the consideration of the southern coast of Arabia, which is inGovernment for some time back, and to habited by wild tribes not under any show that what could be done has been done recognised government, the difficulty of to facilitate the advance of works already in the undertaking is materially increased. progress. But any difficulty that there may We have, however, communicated with the be in that respect does not rest, I appre- Bombay Government, and directed them to hend, with the Government, but with the offer all the assistance in their power. But companies, who do not find it easy, in the we do not rely upon a single line. present state of the market, to obtain Turkish Government have initiated a line the necessary funds for carrying on their of their own from Constantinople to Busworks. With regard to other public works, sorah, and, either the Indian Government not railways, I will mention the most im- on its own account, or some private comportant lately sanctioned: First, the pany assisted by it, will undertake the Madras Irrigation Company has received a completion of that line on to Kurrachee. guarantee of 5 per cent upon £1,000,000; In this way the risk of interruption will be second, at Madras a pier has been ordered reduced to a minimum, a duplicate line at a cost of £103,000, which is to be com- being established throughout. The other pleted in two and a-half years; third, at scheme to which I have referred, and Kurachee, works costing £140,000 are which has received the sanction of Governsanctioned for improving the harbour, the ment, relates to the supply of civil en The |