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To Sir Charles Wood.
Roorkee: March 19, 1863.
[Sidenote: Duty of officials in missionary matters.]
The religious question is, no doubt, a very difficult one; and I am glad that you approved of the course which I took with reference to the great missionary gathering at Lahore. I spoke to Sir R. M—— on the subject when I met him at Delhi. He seemed to think that it had done more harm than good to the missionary cause, as the presence of high officials was sure to raise suspicions in the minds of the natives. I told him that as regarded the acts of officials in such matters, my opinion was this:—If an official says to me, 'I think that I may, with perfect propriety, in my character of official, do so and so, or take such or such a part in furtherance of an object which I believe to be right,' I am quite ready to meet him on this ground, and to join issue with him if I differ from him on the particular point raised. But if he says to me, 'I know that it would be wrong in me to do this as an official, but I do it in my private character,' I can have no discussion with him; because I deny that it is possible to establish any such distinction in the East, and I am inclined to distrust either the honesty or the intelligence of the man who proposes to act upon it.
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To Sir Charles Wood.
Simla: March 19, 1863.
[Sidenote: Financial credit.]
I am as desirous as you can be, perhaps even more desirous, to give no excuse for the charge of cooking accounts, or making things look pleasanter than they ought, because I am quite confident, that if we can keep the peace and show an unimpeachable balance-sheet, we shall soon have more capital sent to India than we know what to do with. I could not help giving, a few days ago, a hint concerning my Canadian experience on this point. When I was appointed to Canada, the first Canadian official to whom I was introduced was the Finance Minister, who was walking about the streets of London with £60,000 of Canadian 6 per cent. debentures in his pocket, which nobody would take. In 1849, two years later, the Montreal merchants drew up an elaborate address recommending annexation to the United States, alleging as one of their principal reasons that so long as they remained colonists, they could obtain no credit in England for public objects, and citing, in proof of this allegation, the fact that in the United States several thousand miles of railway had been constructed, in Canada only thirty miles. Within three years from the date of this address, we had 2,000 miles of railway in Canada in course of construction, and our Government debentures (6 per cent.) were selling in London at 119, higher than those of the United States Government; in fact, we had more credit than we could always employ properly. Now, how was this change effected? Simply by showing a good balance-sheet, an improving country, and a contented people, and leaving capitalists to draw their own inferences from these phenomena. I do not despair of seeing a similar state of things in India; and it was with the view of giving an impulse in this direction that I stated publicly, at Benares the other day, that we must look for the further development of our railway system to bonâ fide private enterprise, aided, perhaps, where circumstances required it, by Government, but not to the extension of Government guarantees. Unguaranteed companies cannot get money while guaranteed companies are competing with them as borrowers. Therefore, if we intend to encourage the former, we must let capitalists know that a limit will be put on the operations of the latter.