For nearly a century the inventions of Hargreaves, of Crompton, of Cartwright, and of Watt, enabled Lancashire to supply Bombay and Calcutta with fabrics, as, in the seventeenth century, Surat and Calicut had supplied London, and this superiority appeared assured until Orientals should acquire the momentum necessary for machinery. One effect in Europe was the rapid increase of a population congregated in towns, and bearing a marked resemblance to the “humiliores” of Rome in their disinclination for war. True to their instincts, the adventurers ever quickened their movements, ever extended the sphere of their enterprises, and, finally, just as the Second Empire verged upon its fall, they opened the Suez Canal in 1869. The consequences of this great engineering triumph have probably equalled in gravity the establishment of the gold standard, but the two phenomena had this marked difference. The producers saw their danger and resisted to the utmost the contraction of the currency, whereas the Canal was a case of suicide. Thenceforward grain, raised by the most enduring labour of the world, could be thrown without limit on the European market, and, agricultural competition once established, industrial could only be a question of time. The Canal made the importation and the reparation of machinery cheap throughout Asia.

From a period, perhaps, as remote as Clive’s victories, the Hindoos had experienced a certain impulsion from contact with the British, but it was not until the building of railroads, under Lord Dalhousie, that the severer phases of competition opened among the inhabitants of India. Lord Dalhousie became Governor General in 1848, and, that the acceleration of the next nine years culminated in a catastrophe seems certain, for nothing can be plainer than that the Mutiny of 1857 was an outbreak of a martial Mohammedan population crushed under an intolerable pressure.

The locality of the disturbance alone is enough to demonstrate the accuracy of this inference. Dalhousie’s last act was the annexation of the Kingdom of Oude. Of this province Lucknow is the capital, and while Lucknow was one focus of the insurrection, Delhi, the capital of the ancient Mogul empire, was the other. Once subdued by the British, and reduced to an economic equality with subtler races, the old Moslem gentry rapidly disappeared. Since 1857 these families, which had maintained themselves for six or seven hundred years, have rapidly fallen into ruin, and their estates have been bought by their creditors, the rising usurer class.

Under immemorial native custom the money-lender, generally speaking, had no forcible means of collecting debt; he relied on public opinion and conducted himself accordingly. On the other hand, unrestricted alienation of land was not usually incidental to proprietorship, and thus the tenant for life, as he would be called in English law, could only pledge his crops; he could not sell the succession. With centralization came full ownership, and with it summary process for debt. Following her immutable law, nature, having changed the form of competition, proceeded to select a quality of mind to correspond with the new conditions of life. She demanded improved vents for her energy. Forthwith, under the pressure of accelerated movement and advancing consolidation, the trammels of caste relaxed, the population fused, and a new aristocracy arose, composed of the strongest economic types culled from all the peoples who inhabit the plains south of the Himalayas. This aristocracy is a strange mixture of blood, an amalgam of the most diverse elements, of Parsees, Brahmins, Bunniahs of different races, with gifted individuals from other castes, like the leather-workers or the goldsmiths; but among them all the most ruthless, the corruptest, the most hated, and the most successful, are the Marwaris, who have been thus described by a British commission:—

“The average Marwari money-lender is not a pleasant character to analyze; his most prominent characteristics are love of gain and indifference to the opinions or feelings of his neighbour. He has considerable self-reliance and immense industry, but the nature of his business and the method by which it is pursued would tend to degrade and harden even a humane nature, which his is not. As a landlord he follows the instincts of the usurer, making the hardest terms possible with his tenant, who is also his debtor and often little better than his slave.”[372]

The effect of the selection of such a type as a dominant class must be destructive to a martial population, whether it be French or English, Mohammedan or Hindoo. The social revolution which swept over Oude after its annexation has been referred to, but the fate which overtook the famous Mahratta nation is even more tragic and impressive.

When, toward the close of the last century, the British were pushing their conquests inland, the most formidable enemy they met were the Mahrattas; and, perhaps, the most renowned battle, next to Plassey, ever fought by Europeans against natives, was Assaye, where Wellesley defeated Sindhia in 1803. These Mahrattas were tribes of Hindoo farmers, who inhabited the mountainous country about one hundred miles to the east of Bombay; a territory of which Poona has always been considered the capital. Mounted on their hill ponies, these bold and hardy spearmen were always ready to follow their chiefs to battle, and, in the eighteenth century, became the terror not only of the Mohammedans of the Deccan, but of the Mogul himself, at Delhi. Even the English respected and feared them, and only subdued them in 1818 after desperate fighting. Then they were disarmed and subjected to the combined action of peace and English law.

Soon after this conquest an inflow of Marwaris began. As early as 1854, in Dalhousie’s administration, Captain Anderson stated that “two-thirds of the ryots [were] in the hands of the Marwaris, and that the average debt of each individual [was] not less than Rs. 100.”[373] Competition continued unchecked as time flowed on, and in 1875 disturbances broke out in certain villages near Poona, serious enough to cause the government to appoint a commission of inquiry. After full investigation this commission reported that up to 1872 or 1873 the peasantry had seemed relatively prosperous, but that afterward “prices fell quickly,” and that this fall had been accompanied by a rise in taxation of somewhat more than fifty per cent.[374] Under this double pressure the peasantry had rapidly sunk into insolvency, and the whole real estate of the Deccan was passing into the hands of usurers, while the farmers had become serfs toiling on the soil they had once owned, to satisfy an inextinguishable debt. Precisely like the colonus, the delinquent was not evicted, but remained, “recorded as occupier of his holding, and responsible for the payment of revenue assessed on it, but virtually reduced by pressure of debt to a tenant-at-will, ... sweated by his Marwari creditor. It is in that creditor’s power to eject him any day; ... and if allowed to hold on, it is only on condition of paying over to his creditor all the produce of his land not absolutely necessary for next year’s seed grain or for the support of life. He is indebted on an average to the extent of sixteen or seventeen years’ payment of the government revenue. He has nothing to hope for, but lives in daily fear of the final catastrophe.”[375]

Since Assaye three generations have passed away, and the Mahratta spearmen have vanished. The Western Ghats are now tilled by a sluggish race whom the British officers deem unworthy of their cavalry, and in the place of those renowned and daring chiefs Sivaji and Holkar, stands the Marwari under whom no ryots can prosper save those “who having received some education are able to combat the sowkars with their own weapons, fraud, chicanery, and even forgery.”[376] Apparently the same destiny awaits every people which requires more than the minimum of nutriment, or which is not gifted with the economic mind,[377] for the “money-lenders sweep off the crops as soon as harvested, only leaving with the ryots barely sufficient to eke out a subsistence till the following year.”[378] That allowance, in the Deccan, is estimated at about a dollar a month in silver—too little to sustain any but the most tenacious organisms, even among Asiatics. Consequently, though the population of India is increasing rapidly, the increase lies chiefly among the aboriginal tribes who form the lowest castes, or in other words among the non-martial or servile races. Men who, though enslaved by the Aryan invaders of prehistoric times, and who have always been subjected to extremest hardship, have been gifted, like the Egyptian fellah, with an endurance which has enabled them to survive.[379]

Herein, likewise, may be plainly perceived the destructive effects of the policy of the Western usurers upon the population subject to them. By enhancing the value of their own money they have nearly doubled the intensity of this Asiatic competition. In India, silver has substantially retained its purchasing power, therefore the ryot now, as in the days of Captain Cunningham, can exist on two rupees a month, but he cannot live on less. Accordingly, the severity of his competition with Europeans must be measured by the value of his wages when reckoned on the European scale. In 1854 the ryot’s two rupees were worth one dollar; now, through the appreciation of gold, they are worth about sixty cents, and the effect is the same as though the tenacity of life of the Asiatic had been increased four-sixths. Everything the Indian or Chinese peasant produces with his hands, whether on the farm or in the factory, has been reduced in price, in relation to Western peoples, in the ratio of six to ten.