Political and Literary essays, 1908-1913

by Earl of Evelyn Baring Cromer

The land-tax has always been the principal source from which Oriental potentates have derived their revenues. For all practical purposes it may be said that the system which they have adopted has generally been to take as much from the cultivators as they could get. Reformers, such as the Emperor Akbar, have at times endeavoured to introduce more enlightened methods of taxation, and to carry into practice the theories upon which the fiscal system in all Moslem countries is based. Those theories are by no means so objectionable as is often supposed. But the reforms which some few capable rulers attempted to introduce have almost always crumbled away under the régime of their successors.[19] In practice, the only limit to the demands of the ruler of an Oriental State has been the ability of the taxpayers to satisfy them.[20] The only defence of the taxpayers has lain in the concealment of their incomes at the risk of being tortured till they divulged their amount.

Nevertheless, even under such a system as this, the wind is tempered to the shorn lamb by the fact that Oriental rulers recognise that they cannot get money from a man who possesses none. If, from drought or other causes, the cultivator raises no crop, he is not required to pay any land-tax. The idea of expropriation for the non-payment of taxes is purely Western and modern. Under Roman law, it was the rule in contracts for rent that a tenant was not bound to pay if any vis major prevented him from reaping.

The European system is very different. A far less heavy demand is made on the cultivator, but he is, at all events in principle and sometimes in practice, called upon to meet it in good and bad years alike. He is expected to save in years of plenty in order to make good the deficit in lean years. If he is unable to pay, he is liable to be expropriated, and he often is expropriated. This plan is just, logical, and very Western. It may be questioned whether Oriental cultivators do not sometimes rather prefer the oppression and elasticity of the Eastern to the justice and rigidity of the Western system.

Various palliatives have been adopted in India with a view to giving some elasticity to the working of the Land Revenue system. In Egypt, where the administration is much less Anglicised than in India, and where, for various reasons, the treatment of this subject presents relatively fewer difficulties, it is the practice now, as was the case under purely native rule, to remit the taxes on what is known as Sharaki lands, that is to say, land which, owing to a low Nile, has not been irrigated. It is not, however, necessary to dwell on the details of this subject. It will be sufficient to draw attention to the different points of view from which the Eastern and the Western approach the subject of fiscal administration. The latter urges with unanswerable logic that financial equilibrium must be maintained, and that he cannot frame a trustworthy Budget unless he knows the amount he may count on receiving from direct taxes, especially from the land-tax. The Eastern replies that he knows nothing of either financial equilibrium or of budgets, that it has, indeed, from time immemorial been the custom to leave him nought but a bare pittance when he had money, but to refrain from any endeavours to extort money from him when he had none.

Another instance drawn, not from the practices of fiscal administration, but from legislation on a cognate subject, may be cited.

Directly Western civilisation comes in contact with a backward Oriental Society, the relations between debtor and creditor are entirely changed. A social revolution is effected. The Western applies his code with stern and ruthless logic. The child-like Eastern, on the other hand, cannot be made to understand that his house should be sold over his head because he affixed his seal to a document, which, very probably, he had never read, or, at all events, had never fully understood, and which was presented to him by a man at one time apparently animated with benevolent intentions, inasmuch as he wished to lend him money, but who subsequently showed his malevolence by asking to be repaid his loan with interest at an exorbitant rate.

Here, again, many palliatives have been suggested and some have been applied, but many of them sin against the economic law, which provides that legislation intended to protect a man against the consequences of his own folly or improvidence is generally unproductive of result.

In truth, no thoroughly effective remedy can be applied in cases such as those mentioned above, without abandoning all real attempt at progress. Civilisation must, unfortunately, have its victims, amongst whom are to some extent inevitably numbered those who do not recognise the paramount necessities of the Budget system, and those who contract debts with an inadequate appreciation of the caveat emptor principle. Nevertheless, the Western financier will act wisely if, casting aside some portion of his Western habit of thought, he recognises the facts with which he has to deal, and if, fully appreciating the intimate connection between finance and politics in an Eastern country, he endeavours, so far as is possible, to temper the clean-cut science of his fiscal measures in such a manner as to suit the customs and intellectual standard of the subject race with which he has to deal.

The question of the amount of taxation levied stands apart from the method of its imposition. It may be laid down as a principle of universal application that high taxation is incompatible with assured stability of Imperial rule.[21]

The financier and the hydraulic engineer, who is a powerful ally of the financier, have probably a greater potentiality of creating an artificial and self-interested loyalty than even the judge. The reasons are obvious. In the first place, the number of criminals, or even of civil litigants, in any society is limited; whereas practically the whole population consists of taxpayers. In the second place, the arbitrary methods of administering justice practised by Oriental rulers do not shock their subjects nearly so much as Europeans are often disposed to think. Custom has made it in them a property of easiness. They often, indeed, fail to appreciate the intentions, and are disposed to resent the methods, of those whose object it is to establish justice in the law-courts. On the other hand, the most ignorant Egyptian fellah or Indian ryot can understand the difference between a Government which takes nine-tenths of his crop in the shape of land-tax, and one which only takes one-third or one-fourth. He can realise that he is better off if the water is allowed to flow periodically on to his fields, than he was when the influential landowner, who possessed a property up-stream on the canal, made a dam and prevented him from getting any water at all.