In 1845, 18,792 chests of opium were sent from Calcutta to China, and nearly the same number of the Malwa opium from Bombay and Damaun. The total production of India exported to China, in 1844, was 21,526 chests from Bengal, and 18,321 from Bombay, in all 39,847 chests. The number of persons in China given to the consumption of opium was estimated, in 1837, at three millions, and the average quantity smoked by each individual is about 17½ grains a day. The consumption of Indian opium (independent of Turkey opium) in China has gradually increased from 3,210 chests in 1817, to 9,969 chests in 1827, and about 40,000 chests in 1837, valued at 25,000,000 dollars. Now it has reached 50,000 to 60,000 chests. Notwithstanding severe penalties, imprisonment, temporary banishment, and even death, the number of those who smoke opium has multiplied exceedingly, and the contraband trade in the drug is carried on to so large an extent, that it is to be feared the practice will become general throughout the empire.

According to Mr. E. Thornton's statistics, the production of opium in Bengal has increased cent. per cent. in the last ten years:—

Chests.
1840-4117,858
1841-4218,827
1842-4318,362
1843-4415,104
1844-4518,350
1845-4621,437
1846-4721,648
1847-4830,515
1848-4936,000

The chest is about 140 lbs., so that the production in 1849 was 5,040,000 lbs.

According to the statements annexed to the statistical papers relating to India, the income from the opium monopoly is obtained by two principal means, namely, by a system of allowing the cultivation of the poppy by the natives of British India on account of Government, and by the impost of a heavy duty on opium grown and manufactured in foreign states, but brought in transit to a British port for exportation. The former system obtains in Bengal, the latter in Bombay. According to the statements published, Bengal opium yields a profit of 7s. 6d. per lb., whilst the duty derived in the Bombay presidency is only equal to a surplus of 5s. 8d. per lb. By these means the total revenue realised by the opium monopoly, in Bengal and Bombay, in the year 1849-50 yielded £3,309,637.

Lest objection should be taken to this large annual revenue derived from the cultivation of a drug, the unnatural consumption of which would be suppressed under any other European government, the Court of Directors is very anxious to show the benefit which the country derives from this monopoly; they say "that as the price of opium is almost wholly paid by foreign consumers, and the largest return is obtained with the smallest outlay, the best interests of India would, appear to be consulted." Nobody at all acquainted with the financial resources and the capabilities of any country, would hazard such an assertion. By paying cultivators for the restricted growth of the poppy a price hardly yielding more than the average rate of wages to the common laborer, I do not see in what way the best interests of India are consulted, nor is it clear that the population derives any benefit by being prohibited altogether from manufacturing a drug, which may be brought from another country in transitu on the payment of a heavy duty; unless indeed the Court of Directors are of opinion that in the event of the abolition of the monopoly, the people of the country would have to make up for the loss of the revenue by submitting to some other mode of direct or indirect taxation. There is an inconsistency in the statements of the Court of Directors, which is absolutely amusing. "The free cultivation of the poppy," say the Directors, "would doubtless lead to the larger outlay of capital, and to greater economy in production; but the poppy requires the richest description of land, and its extended cultivation must therefore displace other products." How very considerate on the part of the Directors, but how strongly at variance with facts, since all the fear of displacing other products, and all this appropriation of the richest description of land for other purposes has not prevented the Indian Government, within less than ten years, from more than doubling the cultivation of the poppy and the manufacture of opium. The Directors tell us that the heavy transit duty charged at Bombay is to discourage production, but they do not say whether that discouragement applies, as one would imagine, to those foreign districts which have to pay the transit duty for their production. If so, the assertion is again at variance with facts, because in a subsequent statement they say, "It is stated that neither the price of opium, nor the extent of cultivation in Malwa, has been affected by the great enhancement of the pass duty, which has taken place since 1845."

The following will show that the Company loses no opportunity of applying the screw:—

The subjugation of Scinde afforded opportunity for the levy of a higher rate. Down to the period of that event, a large portion of the opium of Malwa had been conveyed through Scinde to Kurrachee, and thence onward to the Portuguese ports of Diu and Demaun. That route is now closed, and it was reasonably expected that an advance might be made in the charge of passes without the risk of loss to the revenue from a diminished demand for them. The rate was accordingly increased in October, 1843, from 125 to 200 rupees per chest. Upon the principle that it was desirable to fix the price at the highest amount that could be levied, without forcing the trade into other channels, a further increase was made in 1845. when it was determined that the charge should be 300 rupees per chest. Under the like views it was, in 1847, raised to 400 rupees per chest.

The company was perfectly correct, for though the quantity of opium did not increase, the revenue did; and whilst in 1840-41 16,773 chests yielded an income of only 22,046,452 rupees—16,500 chests brought in 1849-50 actually 72,094,835 rupees into the coffers of the Government of Bombay. But the people of India earned not a pice by it, and those richest descriptions of land, which it was so desirable to reserve for other produce than the poppy, remained barren.