Modern India. Curtis William Eleroy
and a vast amount of suffering is inevitable. But the recuperative power of the empire is astonishing.
Although a famine may extend over its total length and breadth one season, and require all the resources of the government to prevent the entire population from perishing, a normal rainfall will restore almost immediate prosperity, because the soil is so rich, the sun is so hot, and vegetation is so rapid that sometimes three and even four crops are produced from the same soil in a single year. All the people want in time of famine is sufficient seed to replant their farms and food enough to last them until a crop is ripe. The fact that a famine exists in one part of the country, it must also be considered, is no evidence that the remainder of the empire is not abounding in prosperity, and every table of statistics dealing with the material conditions of the country shows that famine and plague have in no manner impeded their progress. On the other hand they demonstrate the existence of an increased power of endurance and rapid recuperation, which, compared with the past, affords ground for hope and confidence of an even more rapid advance in the future.
Comparing the material condition of India in 1904 with what it was ten years previous, we find that the area of soil under cultivation has increased 229,000,000 acres. What we call internal revenue has increased 17 per cent during the last ten years; sea borne foreign commerce has risen in value from £130,500,000 to £163,750,000; the coasting trade from £48,500,000 to £63,000,000, and the foreign trade by land from £5,500,000 to £9,000,000. Similar signs of progress and prosperity are to be found in the development of organized manufactures, in the increased investment of capital in commerce and industry, in dividends paid by various enterprises, in the extended use of the railways, the postoffice and the telegraph. The number of operatives in cotton mills has increased during the last ten years from 118,000 to 174,000, in jute mills from 65,000 to 114,000, in coal and other mines from 35,000 to 95,000, and in miscellaneous industries from 184,000 to 500,000. The railway employes have increased in number from 284,000 to 357,000 in ten years.
A corresponding development and improvement is found in all lines of investment. During the ten years from 1894 to 1904 the number of joint stock companies having more than $100,000 capital has increased from 950 to 1,366, and their paid up capital from £17,750,000 to £24,500,000. The paid in capital of banks has advanced from £9,000,000 to £14,750,000; deposits have increased from £7,500,000 to £23,650,000, and the deposits in postal savings banks from £4,800,000 to £7,200,000, which is an encouraging indication of the growth of habits of thrift. The passenger traffic on the railways has increased from 123,000,000 to 195,000,000, and the freight from 20,000,000 to 34,000,000 tons. The number of letters and parcels passing through the postoffice has increased during the ten years from 340,000,000 to 560,000,000; the postal money orders from £9,000,000 to £19,000,000, and the telegraph messages from 3,000,000 to 5,000,000 in number.
The income tax is an excellent barometer of prosperity. It exempts ordinary wage earners entirely–persons with incomes of less than 500 rupees, a rupee being worth about 33 cents of our money. The whole number of persons paying the income tax has increased from 354,594 to 495,605, which is about 40 per cent in ten years, and the average tax paid has increased from 37.09 rupees to 48.68 rupees. The proceeds of the tax have increased steadily from year to year, with the exception of the famine years.
There are four classifications of taxpayers, and the proportion paid by each during the last year, 1902, was as follows:
The last item is very significant. It shows that nearly 60 per cent of the income taxpayers of India are supported by miscellaneous investments other than securities and joint stock companies. The item includes the names of merchants, individual manufacturers, farmers, mechanics, professional men and tradesmen of every class.
The returns of the postal savings banks show the following classes of depositors:
The interest allowed by the savings bank government of India is 3-1/2 per cent.
Considering the awful misfortunes and distress which the country has endured during the last ten years, these facts are not only satisfactory but remarkable, and if it can progress so rapidly during times of plague and famine, what could be expected from it during a cycle of seasons of full crops.
During the ten years which ended with 1894 the seasons were all favorable, generally speaking, although local failures of harvests occurred here and there in districts of several provinces, but they were not sufficient in area, duration or intensity to affect the material conditions of the people. The ten succeeding years, however, ending with 1904 witnessed a succession of calamities that were unprecedented either in India or anywhere else on earth, with the exception of a famine that occurred in the latter part of the eighteenth century. Those ten years not only saw two of the worst famines, but repeated visitations of widespread and fatal epidemics. It is estimated that during the ten years ending December, 1903, a million and a half of deaths were caused by the bubonic plague alone, and that the mortality from that pestilence was small in comparison with that caused by cholera, fever and famine. The effects of those epidemics had been to hamper trade, to alarm and demoralize the people, to obstruct foreign commerce, prevent investments and the development of material resources. Yet during the years 1902 and 1903 throughout all India there was abundant prosperity. This restoration of prosperity is most noticeable in several of the districts that suffered most severely from famine. To a large measure the agricultural population have been restored to their normal condition.
It is difficult in a great country like India where wages are so small and the cost of living is so insignificant compared with our own country, to judge accurately of the condition of the laboring classes. The empire is so vast and so diverse in all its features that a statement which may accurately apply to one province will misrepresent another. But, taking one consideration with another, as the song says, and drawing an average, it is plainly evident that the peasant population of India is slowly improving in condition. The scales of wages have undoubtedly risen; there has been an improvement in the housing and the feeding of the masses; their sanitary condition has been radically changed, although they have fought against it, and the slow but gradual development of the material resources of the country promises to make the improvement permanent.
The chief source of revenue in India from ancient times has been a share in the crops of the farmers. The present system has been handed down through the centuries with very little modification, and as three-fifths of the people are entirely and directly dependent upon the cultivation of the land, the whole fabric of society has been based upon that source of wealth. The census gives 191,691,731 people as agriculturists, of whom 131,000,000 till their own or rented land, 18,750,000 receive incomes as landlord owners and the remainder are agricultural laborers. The landlord caste are the descendants of hereditary chiefs, of former revenue farmers and persons of importance to whom land grants were made in ancient times. Large tracts of land in northern India are owned by municipalities and village communities, whose officials receive the rents and pay the taxes. Other large tracts have been inherited from the invaders and conquerors of the country. It is customary in India for the landlord to receive his rent in a part of the crop, and the government in turn receives a share of this rent in lieu of taxes. This is an ancient system which the British government has never interfered with, and any attempt to modify or change it would undoubtedly be resisted. At the same time the rents are largely regulated by the taxes. These customs, which have come down from the Mogul empire, have been defined and strengthened by time and experience. Nearly every province has its own and different laws and customs on the subject, but the variation is due not to legislation, but to public sentiment. The tenant as well as the landlord insists that the assessments of taxes shall be made before the rent rate is determined, and this occurs in almost every province, although variations in rent and changes of proprietorship and tenantry very seldom occur. Wherever there has been a change during the present generation it has been in favor of the tenants. The rates of rent and taxation naturally vary according to the productive power of the land, the advantages of climate and rainfall, the facilities for reaching market and other conditions. But the average tax represents about two-thirds of a rupee per acre, or 21 cents in American money.
We have been accustomed to consider India a great wheat producing country,