India has every requisite for the production of unbounded wealth—for the employment of untold capital. How is it then that, with all the advantages it possesses, its industries languish and struggle for bare existence, and in many cases die out altogether? How is it that, with all its material advantages, it does not enjoy unbounded prosperity? I have no doubt that you will point to the increased exports and imports of India, and claim this as an instance of unbounded prosperity due to Free Trade. I contend that it is wholly due to extension in railways, improvement in facilities of transport, and that with these improvements its prosperity ought to have been enormous. If it be prosperous, why do we have essays on the Poverty of India?[98] Why do Viceroys dwell on the subject of its poverty?[99] Why do its industries languish and die out?
India has untold wealth, and wonderful natural resources, whether agricultural, mineral, or industrial, but they are to a great extent dormant.
It has coal of an excellent character, and inexhaustible in quantity; it has fine petroleum, large supplies of timber and charcoal; it has iron, of a purity that would make an English iron-master’s mouth water, spread wholesale all over the country,—in most places to be had by light quarrying or collection from the surface; it has chrome iron capable of making the finest Damascus blades; manganiferous ore; splendid hematites in profusion. It has gold, silver, antimony, tin, copper, plumbago, lime, kaolin, gypsum, precious stones, asbestos. Soft wheat, equal to the finest Australian; hard wheat, equal to the finest kabanka.[100] It has food grains of every description: oilseeds, tobacco, tea, coffee, cocoa, sugar, spices, lac, dyes, cotton, jute, hemp, flax, coir, fibres of every description; in fact, products too numerous to mention. Its inhabitants are frugal, thrifty, industrious, capable of great physical exertion, docile, easily taught, skilful in any work requiring delicate manipulation. Labour is absurdly cheap; the soil for the most part wonderfully productive, and capable of producing crop after crop without any symptoms of exhaustion.
The present yield of wheat is about 26,500,000 quarters, or about 9,500,000 quarters in excess of the total imports of wheat into England; and in the Punjab alone there is cultivable waste land sufficient to produce 12,000,000 quarters, besides enormous parts in Burmah and other parts of India, only requiring irrigation or population to bring them under the plough.[101]
England imports annually commodities to the value of about £148,500,000 under six heads alone,[102] a large portion of which might be diverted to India by simply adopting a preferential tariff slightly favorable to her dependencies. Take, for example, wheat. If England be determined to persist in the endeavour to ruin its agricultural industry for a political whim, a slight tax on American and Russian wheat would suffice to turn the whole of the wheat import trade to India and Australia. Such a tax would, I believe, tend to lower, rather than raise, the price of wheat, because India would steadily go in for the production of wheat, if its calculations were not liable to be disturbed by a slight fall in the price of wheat in America or Russia, which may throw back a quantity of wheat on the hands of the Indian producers or dealers.[103]
Again, India suffers from a tax which prevents the export of rice except on a tariff which is sometimes as high as 14½ per cent. on the value of the rice. This not only handicaps India in its exports when compared with other countries, but it drives the natives to grow less remunerative crops of oilseeds for export, and the result of this is that, when famine arises, there is no surplus food which might be retained from exports, and thus prevent the painful scenes of starvation and distress that India has witnessed of late years. To take off the tax would prevent depletion, for no foreign country could compete with the demand which failure of crops in any part of India would inevitably cause.
There is about £32,000,000 of English capital invested in Indian manufacturing industries, of which £18,000,000, or more than one-half, is invested in indigo, tea, coffee, jute, cotton, sugar, coal and iron industries, and how are these thriving? Everywhere throughout Bengal you see the ruins of English Indigo factories.
Coffee and tea are struggling hard for existence. Planters are ruined, and their estates bought at depreciated rates in times of depression. This enables the industries to survive with some show of prosperity in good times. Agricultural industries, such as coffee or tea, draw off surplus population, and employ them on land that would otherwise be uncultivated. Coal is doing fairly, but not nearly so well as it might do if our manufacturing industries prospered.
Cotton manufacture sprung up under a protective tariff, and appeared to be prospering; but selfish Manchester called aloud for the sacrifice of the industry. The tariff was removed, and the industry is left to struggle for life, or perish, as it may. Several capitalists who have embarked capital in cotton manufacture on the faith of this tariff, have lost their money. Everywhere in India, you may see evidences of native iron manufacture crushed out by Free Trade, with nothing but slag heaps remaining to testify to former prosperity. The splendid native iron being superseded by cheap worthless iron of English manufacture. Many attempts have been made by English capitalists to revive, or start, fresh iron industries, but they have one and all been crushed out for want of a little fostering protection. The latest attempt nearly succeeded, but the modest request for a little help was sternly refused:—What!!! Foster your industry? What sacrilege to advocate the violation of every principle of Jugernāth!!! and so the helpless babe was thrown under the relentless wheels of Jugernāth. There was a crunch,—a faint moan from the ruined shareholders,—and then all was over. Hurrah for Jugernāth!! Pereat India!!!