But there remains the vast dominion of India, which falls neither into the one category nor into the other. Though there are many primitive and backward elements among its vast population, there are also peoples and castes whose members are intellectually capable of meeting on equal terms the members of any of the ruling races of the West. Yet during this age, when self-government on the amplest scale was being extended to the chief regions of the British Empire, India, the greatest dominion of them all, did not obtain the gift of representative institutions even on the most modest scale. Why was this?

It was not because the ruling race was hostile to the idea, or desired merely to retain its own ascendancy. On the contrary, both in Britain and among the best of the British administrators in India, it was increasingly held that the only ultimate justification for the British power in India would be that under its guidance the Indian peoples should be gradually enabled to govern themselves. As early as 1824, when in Europe sheer reaction was at its height, this view was being strongly urged by one of the greatest of Anglo-Indian administrators, Sir Thomas Munro, a soldier of distinction, then serving as governor of Madras. 'We should look upon India,' he wrote, 'not as a temporary possession, but as one which is to be maintained permanently, until the natives shall have abandoned most of their superstitions and prejudices, and become sufficiently enlightened to frame a regular government for themselves, and to conduct and preserve it. Whenever such a time shall arrive, it will probably be best for both countries that the British control over India should be gradually withdrawn. That the desirable change contemplated may in some after age be effected in India, there is no cause to despair. Such a change was at one time in Britain itself at least as hopeless as it is here. When we reflect how much the character of nations has always been influenced by that of governments, and that some, once the most cultivated, have sunk into barbarism, while others, formerly the rudest, have attained the highest point of civilisation, we shall see no reason to doubt that if we pursue steadily the proper measures, we shall in time so far improve the character of our Indian subjects as to make them able to govern and protect themselves.'

In other words, self-government was the desirable end to be pursued in India as elsewhere; but in India there were many and grave obstacles to its efficient working, which could only slowly be overcome. In the first place, India is more deeply divided in race, language, and religion than any other region of the world. Nowhere else is there such a medley of peoples of every grade of development, from the almost savage Bhil to the cultivated and high-bred Brahmin or Rajput or Mahomedan chief. There are sharp regional differences, as great as those between the European countries; but cutting across these there are everywhere the rigid and impermeable distinctions of caste, which have no parallel anywhere else in the world. The experience of the Austro-Hungarian Empire, whose confusion of races is simplicity itself in comparison with the chaos of India, affords a significant demonstration of the fact that parliamentary institutions, if they are established among deeply divided peoples, must almost inevitably be exploited for the purpose of racial ascendancy by the most vigorous or the best-organised elements among the people; and a very ugly tyranny is apt to result, as it has resulted in Austro-Hungary. This consequence would almost certainly follow the establishment of a full representative system in India. In the cities of mediaeval Italy, when the conflict of parties became so acute that neither side could expect justice from the other, the practice grew up of electing a podesta from some foreign city to act as an impartial arbiter. The British power in India has played the part of a podesta in restraining and mediating between the conflicting peoples and religions of India.

But again (and this is even more fundamental), for thousands of years the history of India has been one long story of conquests and tyrannies by successive ruling races. Always Might has been Right, so that the lover of righteousness could only pursue it, like the mediaeval ascetic, by cutting himself off from the world, abjuring all social ties, and immolating the flesh in order to live by the spirit. Always Law had been, in the last resort, the Will of the Stronger, not the decree of impartial justice. Always the master-races, the predatory bands, the ruling castes, had expected to receive, and the mass of the people had been accustomed to give, the most abject submission; and these habits were difficult to overcome. 'In England,' says Sir Thomas Munro, 'the people resist oppression, and it is their spirit which gives efficacy to the law: in India the people rarely resist oppression, and the law intended to secure them from it can therefore derive no aid from themselves. ... It is in vain to caution them against paying by telling them that the law is on their side, and will support them in refusing to comply with unauthorised demands. All exhortations on this head are thrown away, and after listening to them they will the very next day submit to extortion as quietly as before.' How could representative institutions be expected to work under such conditions? They would have lacked the very foundation upon which alone they can firmly rest: respect for law, and public co-operation in the enforcement of it. Thus the supreme service which the government of India could render to its people was the establishment and maintenance of the Reign of Law, and of the liberty which it shelters. In such conditions representative government would be liable to bring, not liberty, but anarchy and the renewal of lawless oppression.

But although the extension of the representative system to India neither was nor could be attempted in this age, very remarkable advances were made towards turning India in a real sense into a self-governing country. It ceased to be regarded or treated as a subject dominion existing solely for the advantage of its conquerors. That had always been its fate in all the long centuries of its history; and in the first period of British rule the trading company which had acquired this amazing empire had naturally regarded it as primarily a source of profit. In 1833 the company was forbidden to engage in trade, and the profit-making motive disappeared. The shareholders still continued to receive a fixed dividend out of the Indian revenues, but this may be compared to a fixed debt-charge, an annual payment for capital expended in the past; and it came to an end when the company was abolished in 1858. Apart from this dividend, no sort of tribute was exacted from India by the ruling power. India was not even required to contribute to the upkeep of the navy, which protected her equally with the rest of the Empire, or of the diplomatic service, which was often concerned with her interests. She paid for the small army which guarded her frontiers; but if any part of it was borrowed for service abroad, its whole pay and charges were met by Britain. She paid the salaries and pensions of the handful of British administrators who conducted her government, but this was a very small charge in comparison with the lavish outlay of the native princes whom they had replaced. India had become a self-contained state, whose whole resources were expended exclusively upon her own needs, and expended with the most scrupulous honesty, and under the most elaborate safeguards.

They were expended, moreover, especially during the later part of this period, largely in equipping her with the material apparatus of modern civilisation. Efficient police, great roads, a postal service cheaper than that of any other country, a well-planned railway system, and, above all, a gigantic system of irrigation which brought under cultivation vast regions hitherto desert—these were some of the boons acquired by India during the period. They were rendered possible partly by the economical management of her finances, partly by the liberal expenditure of British capital. Above all, the period saw the beginning of a system of popular education, of which the English language became the main vehicle, because none of the thirty-eight recognised vernacular tongues of India either possessed the necessary literature, or could be used as a medium for instruction in modern science. In 1858 three universities were established; and although their system was ill-devised, under the malign influence of the analogy of London University, a very large and increasing number of young graduates, trained for modern occupations, began to filter into Indian society, and to modify its point of view. All speaking and writing English, and all trained in much the same body of ideas, they possessed a similarity of outlook and a vehicle of communication such as had never before linked together the various races and castes of India. This large and growing class, educated in some measure in the learning of the West, formed already, at the end of the period, a very important new element in the life of India. They were capable of criticising the work of their government; they were not without standards of comparison by which to measure its achievements; and, aided by the large freedom granted to the press under the British system, they were able to begin the creation of an intelligent public opinion, which was apt, in its first movements, to be ill-guided and rash, but which was nevertheless a healthy development. That this newly created class of educated men should produce a continual stream of criticism, and that it should even stimulate into existence public discontents, is by no means a condemnation of the system of government which has made these developments possible. On the contrary, it is a proof that the system has had an invigorating effect. For the existence and the expression of discontent is a sign of life; it means that there is an end of that utter docility which marks a people enslaved body and soul. India has never been more prosperous than she is to-day; she has never before known so impartial a system of justice as she now possesses; and these are legitimate grounds of pride to her rulers. But they may even more justly pride themselves upon the fact that in all her history India has never been so frankly and incessantly critical of her government as she is to-day; never so bold in the aspirations for the future which her sons entertain.

The creation of the new class of Western-educated Indians also facilitated another development which the British government definitely aimed at encouraging: the participation of Indians in the conduct of administration in their own land. The Act of 1833 had laid it down as a fundamental principle that 'no native of the said territories ... shall by reason only of his religion, place of birth, descent, or any of them, be disabled from holding any place, office, or employment.' The great majority of the minor administrative posts had always been held by Indians; but until 1833 it had been held that the maintenance of British supremacy required that the higher offices should be reserved to members of the ruling race. This restriction was now abolished; but it was not until the development of the educational system had produced a body of sufficiently trained men that the new principle could produce appreciable results; and even then, the deficiencies of an undeveloped system of training, combined with the racial and religious jealousies which the government of India must always keep in mind, imposed limitations upon the rapid increase of the number of Indians holding the higher posts. Still, the principle had been laid down, and was being acted upon. And that also constituted a great step towards self-government.

India in 1878 was governed, under the terms of a code of law based upon Indian custom, by a small body of British officials, among whom leading Indians were gradually taking their place, and who worked in detail through an army of minor officials, nearly all of Indian birth, and selected without regard to race or creed. She was a self-contained country whose whole resources were devoted to her own needs. She was prospering to a degree unexampled in her history; she had achieved a political unity never before known to her; she had been given the supreme boon of a just and impartial law, administered without fear or favour; and she had enjoyed a long period of peace, unbroken by any attack from external foes. Here also, as fully as in the self-governing colonies, membership of the British Empire did not mean subjection to the selfish dominion of a master, or the subordination to that master's interests of the vital interests of the community. It meant the establishment among a vast population of the essential gifts of Western civilisation, rational law, and the liberty which exists under its shelter. Empire had come to mean, not merely domination pursued for its own sake, but trusteeship for the extension of civilisation.

The period of practical British monopoly, 1815-1878, had thus brought about a very remarkable transformation in the character of the British Empire. It had greatly increased in extent, and by every test of area, population, and natural resources, it was beyond comparison the greatest power that had ever existed in the world. But its organisation was of an extreme laxity; it possessed no real common government; and its principal members were united rather by a community of institutions and ideas than by any formal ties. Moreover, it presented a more amazing diversity of racial types, of religions, and of grades of civilisation, than any other political fabric which had existed in history. Its development had assuredly brought about a very great expansion of the ideas of Western civilisation over the face of the globe, and, above all, a remarkable diffusion of the institutions of political liberty. But it remained to be proved whether this loosely compacted bundle of states possessed any real unity, or would be capable of standing any severe strain. The majority of observers, both in Britain itself and throughout the world, would have been inclined, in 1878, to give a negative answer to these questions.