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for feudatory, and non-feudatory, than the machinery that keeps the peace, hinders robbery by land and sea, and protects the capitalist and the producer. But the cost is enormous, and it falls exclusively on British subjects. A quarter of the gross expenditure, at least, goes to the two heads of "Marine" and "Army." The total strength of the latter force is 218,805 officers and men, of whom nearly a third consists of Europeans, and this relatively small army involves a yearly cost of about twenty millions (Rx.) Another very heavy item of expenditure is due to what are known as "home-charges," estimated at sixteen millions (sterling); and this, having to be made good in depreciated rupees, involves a great and increasing cost in what is called "loss by exchange." The home-charges are composed, partly at least, of sums paid for services past and present, such as civil and military pensions, the charges incurred for the India-Office and the purchase of stores, interest on loans, and private remittances: all these being represented by the Secretary of State's bills, bought in London by mercantile men, who want to send money out to India, and paid for at the current exchange of the day. The rest of the value of her excess-imports India receives in treasure; a sum which averages ten krors--or millions of Rx.-part of which is hoarded, but which is, to a great extent, coined and added to the currency, in which form it goes to stimulate production.

revenue.

These items may be taken to form an aggregate of nearly forty millions of Rx., which happens to be about the equivalent of the actual taxation of British India, including the land The rest of the administration, Civil, Public Works, Education, etc., (the Post Office just paying its own outlay) is maintained out of other sources of Revenue, such as Opium, Railways, Canals, and receipts not derived from the taxpayer. But, as we see, the people of India pay, in taxes or in rent, the Loss by Exchange.

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Army, etc.

21,000,000

Excess exports.
16,000,000

2,250,000

cost of their protection and general relations to the mastercountry, and are entitled to do all that they fairly can to get full value for their money. In answer to such a claim, the present Government can point to a rate of wages, which if it be still too low, has risen threefold since the days of Akbar; to a taxation which the bulk of the people can almost wholly escape; to a fixed, if inexorable, charge upon the land. And it is a distinct gain, if, in spite of some rise in prices, articles of decent comfort, such as piece-goods for wearing apparel, are still easily to be procured.

This on the whole, must be allowed to be a good record. The troubles above mentioned are a drawback which will yield to time and knowledge, being mainly due to the fact of the administration being, we need not say "too good," but inspired by ideas to which the people have not as yet quite attained. As the rate of increase in population diminishes, (which it has already shown signs of doing,) as education improves and extends, the benefits of peace and order will be more appreciated, and more reasonable ideals will take the place of much that is still unsocial and backward. If we look back at the misgovernment of the Mughals and the anarchy that followed, we shall see the justification of such hopes. An able Russian publicist has stated this in terms which it might have seemed ungraceful for an English writer to employ :

"In reality," wrote the late Michael Katkoff in the Moscow Gazette, "in reality the English have been the saviours of India. During whole centuries the history of India presents one continued spectacle of murder and devastation. The bloody era

terminates with the Conquest of India by the English, whose Government has been more mild, humane, and just than all the Governments under which the Hindus have ever lived."*

Katkoff (died 1887) has been called the apostle of Russian ideas, and the representative of his country's Chauvinism. At least he was a favourer of ideas not usual amongst Englishmen, and that is just what gives his testimony the greater value. The date of the above extract has been unhappily mislaid.

[The subjects summarised in this Section are treated in detail in the reports of "Moral and Material progress" presented to Parliament yearly, and especially in Sir W. Hunter's "Indian Empire," London, 1893, an able and exhaustive review of past events and present conditions. The works of Sir G. Birdwood and Sir A. C. Lyall cited on the margin are also worth a reference, though some of the conclusions in the text are at variance with those of the last-named.

The latest financial report, dated Calcutta, March 23, shows an estimated deficit for the year 1892-93, of over one million Rx. The fall in exchange below the rate originally taken as a basis of calculation has caused an addition to the expenditure, without which there would have been a small surplus.* A similar deficit is looked for in 1893-94, and from the same cause; and it is explained that the fall in exchange has, in two years, added Rx.4,142,400 to the expenditure, or an increase of ten per cent. on the net outgoings annually. The Government declares that India is solvent, but evidently regards with anxiety the increasing home-charges and the decreasing value of the Rupee.]

By recent regulations the Indian mints have been closed to free coinage and a governmental rate has been affixed to the rupee. But the difficulty, though thus temporarily evaded, cannot be regarded as finally solved.

END OF VOL. II.

APPENDIX I.

THE GENESIS OF THE FIRST AFGHAN WAR.

By the courtesy of the India Office in allowing access to the despatches of the period-never before published, or only in an imperfect form the whole facts of the case are now, for the first time, forthcoming.

The earliest symptom of the movement appears in the Secret Committee's Letter of 25th June, 1836, when the Foreign Office was under Lord Palmerston, and Sir J. C. Hobhouse was President of the Board of Control. The Secret Committee was-it must be remembered-obliged to send out to India whatever instructions might be ordered by His Majesty's Government for the time being. The year 1836 was the last year of the reign of King William the IV., and the easy going Lord Melbourne was nominally head of the Ministry. These things being premised, it will hardly be too much to assume if we attribute the origin of the instructions to the Foreign Secretary.

In the letter above cited there is clear evidence that the information from Persia was beginning to cause apprehension in Palmerston's mind, that the new Shah of that country was being pushed forward to the line of the Indus by Russian instigation, which it was desirable to counteract, yet not to directly oppose. It states that from information, supplied by Mr. Ellis-who was about to resign his mission in Persia-it appeared that, so early in the year as the month of February, overtures had been received by the Persian Court from Dost Muhamad, relative to a conquest and partition of the territories on the border then held by Kamran, the head of the Popalzai clan.* The Khan of Khiva was also understood to be entering into engagements with the Government of the This most improbable story-resting on mere gossip-was completely at variance with all that subsequently came out.

*

Czar. The Governor-General was therefore enjoined to watch affairs in those quarters, and to counteract the progress of Russian influence, either by a political or commerical mission, as in his discretion might seem best. He would also hear from the new British Minister at Teheran-Mr. McNeill, to whom the Government in London would communicate their instructions.*

Doubtless, this was the original ground of Auckland's frigid letter to the Dost when, on assuming charge of the Government, in India, he received that potentate's application for advice and assistance in his controversy with Ranjit Sinh, the Maharája of Lahore. Failing to obtain satisfaction from the Governor-General, Dost Muhamad turned to the Sháh of Persia for aid against the Sikhs. In July, 1837, the Sháh advanced upon Herát; but by that time Burnes was well on his way to Cabul, and had received letters of welcome from the Dost, informing him of the arrival at Cabul of a Russian envoy, and promising to pay no attention," to him until Burnes should make his appearance. Burnes also heard from McNeill that he had intercepted correspondence between the Russian Minister at Teheran and the Dost's rebellious brethren at Candahar.

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The next important stage in the instructions sent to India through the Secret Committee is a letter dated 10th May, 1838; in which the Governor-General is informed that, in consequence of the receipt by the Dost of a letter from the Emperor Nicholas, Burnes is to be ordered to withdraw from Cabul unless the Dost will give up all comunication with Russia. At the same time he is warned against doing anything calculated to lead to controversy with the Court of St. Petersburg. [This despatch was one of the two London letters included in the Blue-Book of 1859.]

On the 22nd of the same month, Auckland reported the withdrawal of Burnes from Cabul, and enclosed his Minute of the 12th, with copy of his instructions to Macnaghten for the negotiation with Ranjit and Sháh Shuja, which resulted in the Tripartite Treaty. The Governor-General admitted that the "emergency” and the "rapid march of events," might compel him to act without awaiting instructions from London.

This letter is cited in the Governor-General's despatch of 13th August, 1838 as the foundation of his subsequent action.

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