Nearly a century has now elapsed since, by the battle of Plassey, British power was established in India, and from that day local action has tended to disappear, and centralization to take its place. From its date to the close of the century there was a rapidly increasing tendency toward having all the affairs of the princes and the people settled by the representatives of the Company established in Calcutta, and as usual in such cases, the country was filled with adventurers, very many of whom were wholly without principle, men whose sole object was that of the accumulation of fortune by any means, however foul, as is well known by all who are familiar with the indignant denunciations of Burke.[64]
England was thus enriched as India was impoverished, and as centralization was more and more established.
Step by step the power of the Company was extended, and everywhere was adopted the Hindoo principle that the sovereign was proprietor of the soil, and sole landlord, and as such the government claimed to be entitled to one-half of the gross produce of the land. "Wherever," says Mr. Rickards, long an eminent servant of the Company,
"The British power supplanted that of the Mohammedans in Bengal, we did not, it is true, adopt the sanguinary part of their creed; but from the impure fountain of their financial system, did we, to our shame, claim the inheritance to a right to seize upon half the gross produce of the land as a tax; and wherever our arms have triumphed, we have invariably proclaimed this savage right: coupling it at the same time with the senseless doctrine of the proprietary right to these lands being also vested in the sovereign, in virtue of the right of conquest."—Rickards's India, vol. i, 275.
Under the earlier Mohammedan sovereigns, this land-tax, now designated as rent, had been limited to a thirteenth, and from that to a sixth of the produce of the land; but in the reign of Akber (16th century) it was fixed at one-third, numerous other taxes being at the same time abolished. With the decline and gradual dissolution of the empire, the local sovereigns not only increased it, but revived the taxes that had been discontinued, and instituted others of a most oppressive kind; all of which were continued by the Company, while the land-tax was maintained at its largest amount. While thus imposing taxes at discretion, the Company had also a monopoly of trade, and it could dictate the prices of all it had to sell, as well as of all that it needed to buy; and here was a further and most oppressive tax, all of which was for the benefit of absentee landlords.
With the further extension of power, the demands on the Company's treasury increased without an increase of the power to meet them; for exhaustion is a natural consequence of absenteeism, or centralization, as has so well been proved in Ireland. The people became less able to pay the taxes, and as the government could not be carried on without revenue, a permanent settlement was made by Lord Cornwallis, by means of which all the rights of village proprietors, over a large portion of Bengal, were sacrificed in favour of the Zemindars, who were thus at once constituted great landed proprietors and absolute masters of a host of poor tenants, with power to punish at discretion those who were so unfortunate as not to be able to pay a rent the amount of which had no limit but that of the power to extort it. It was the middleman system of Ireland transplanted to India; but the results were at first unfavourable to the Zemindars, as the rents, for which they themselves were responsible to the government, were so enormous that all the rack-renting and all the flogging inflicted upon the poor cultivators could not enable them to pay; and but few years elapsed before the Zemindars themselves were sold out to make way for another set as keen and as hard-hearted as themselves. That system having failed to answer the purpose, it was next determined to arrest the extension of the permanent settlement, and to settle with each little ryot, or cultivator, to the entire exclusion of the village authorities, by whom, under the native governments, the taxes had uniformly been so equitably and satisfactorily distributed. The Ryotwar system was thus established, and how it has operated may be judged from the following sketch, presented by Mr. Fullerton, a member of the Council at Madras:—
"Imagine the revenue leviable through the agency of one hundred thousand revenue officers, collected or remitted at their discretion, according to the occupant's means of paying, whether from the produce of his land or his separate property; and in order to encourage every man to act as a spy on his neighbour, and report his means of paying, that he may eventually save himself from extra demand, imagine all the cultivators of a village liable at all times to a separate demand in order to make up for the failure of one or more individuals of the parish. Imagine collectors to every county, acting under the orders of a board, on the avowed principle of destroying all competition for labour by a general equalization of assessment, seizing and sending back runaways to each other. And, lastly, imagine the collector the sole magistrate or justice of the peace of the county, through the medium and instrumentality of whom alone any criminal complaint of personal grievance suffered by the subject can reach the superior courts. Imagine, at the same time, every subordinate officer employed in the collection of the land revenue to be a police officer, vested with the power to fine, confine, put in the stocks, and flog any inhabitant within his range, on any charge, without oath of the accuser, or sworn recorded evidence of the case."[65]
Any improvement in cultivation produced an immediate increase of taxation, so that any exertion on the part of the cultivator would benefit the Company, and not himself. One-half of the gross produce [66] may be assumed to have been the average annual rent, although, in many cases it greatly exceeded that proportion. The Madras Revenue Board, May 17th, 1817, stated that the "conversion of the government share of the produce (of lands) is in some districts, as high as 60 or 70 per cent. of the whole."[67]
It might be supposed that, having taken so large a share of the gross produce, the cultivator would be permitted to exist on the remainder, but such is not the case. Mr. Rickards gives [68] a list of sixty other taxes, invented by the sovereigns, or their agents, many of which he states to exist at the present day. Those who have any other mode of employing either capital or labour, in addition to the cultivation of their patches of land, as is very frequently the case, are subject to the following taxes, the principle of which is described as excellent by one of the collectors, December 1st, 1812:—
"The Veesabuddy, or tax on merchants, traders, and shopkeepers; Mohturfa, or tax on weavers, cotton cleaners, shepherds, goldsmiths, braziers, ironsmiths, carpenters, stone-cutters, &c.; and Bazeebab, consisting of smaller taxes annually rented out to the highest-bidder. The renter was thus constituted a petty chieftain, with power to exact fees at marriages, religious ceremonies; to inquire into and fine the misconduct of females in families, and other misdemeanours; and in the exercise of their privileges would often urge the plea of engagements to the Cirkar (government) to justify extortion. The details of these taxes are too long to be given in this place. The reader, however, may judge of the operation and character of all by the following selection of one, as described in the collector's report:—'The mode of settling the Mohturfa on looms hitherto has been very minute; every circumstance of the weaver's family is considered, the number of days which he devotes to his loom, the number of his children, the assistance which he receives from them, and the number and quality of the pieces which he can turn out in a month or year; so that, let him exert himself as he will, his industry will always be taxed to the highest degree.' This mode always leads to such details that the government servants cannot enter into it, and the assessment of the tax is, in consequence, left a great deal too much to the Curnums of the villages. No weaver can possibly know what he is to pay to the Cirkar, till the demand come to be made for his having exerted himself through the year; and having turned out one or two pieces of cloth more than he did the year before, though his family and looms have been the same, is made the ground for his being charged a higher Mohturfa, and at last, instead of a professional, it becomes a real income tax."[69]