As a result of the direct British rule over India the public debt of the country rose from £51,000,000 in 1857 to £200,000,000 in 1901. The agricultural class of India, moreover, the backbone of national prosperity in a country whose main occupation is agriculture, had become so poor that in one district in 1900 85% of the land revenue was directly paid to the Government officials by money-lenders, the landowners being wholly unable to meet their obligations. It was estimated by the leading medical journal of the world (The Lancet, June, 1901) that during the last decimum of the nineteenth century nineteen millions of British Indian subjects had died of starvation, and one million from plague. And yet at the beginning of the twentieth century according to the financial arrangements of the country half of its total revenue was sent out of India to England each year. This included the upkeep of the India office in London, pensions to retired officials residing in England, and interest on public debts.[44]
With these facts in mind the reader will not wonder that India is poor. Place any other country in the world under the same conditions. Let her government be carried on by a foreign power with the complete exclusion of the sons of the soil from positions of responsibility; let her fiscal policy be determined by the parliament of a rival commercial nation without a single representative of the governed nation sitting in its councils; let its industry be crippled or destroyed by a malicious use of political power by its foreign rulers; let its agriculture be subjected to a heavy and uncertain land tax; let half its total revenue be carried away annually to a foreign land; and you will not be surprised if the most prosperous nation in the world sinks in the course of a few years to the lowest depths of poverty and degradation.[45]
A nation prospers if its government is wisely administered in the interest of the people, if the sources of wealth are widened, and if the proceeds from taxation are spent for the uplift of the people and among the people. It is impoverished if its government is carried on by an outside power for the purpose of exploitation; if the sources of its wealth are narrowed from the crippling of its industries, and if its revenues are largely remitted out of the country without an economic return. Americans stand in awe before the single monopoly of the Standard Oil Company. They are appalled by the magnitude and tyranny of its power. They should remember that the Standard Oil monopoly is a pigmy before the British monopoly of India. England has exercised for nearly two hundred years exclusive and undivided control over the affairs of India. She has had power to shape the destinies of three hundred million people according to her will, being responsible to no one but herself. She has held not only the government of India, but its commerce, its finances, and its industry. In conclusion let us repeat the poignant remark quoted earlier, “The national wealth of India did not sprout wings and fly away. It had to be carried away.”
FOOTNOTES:
[35] Quoted from R. C. Dutt, Economic History of British India.
[36] Quoted from R. C. Dutt.
[37] Quoted from R. C. Dutt.
[38] Prosperous British India.
[39] From The Government of India.
[40] Quoted from R. C. Dutt.