To give an account of his Government at large, would be to write the history of an empire during five years, and space cannot here be afforded for such a task. Again, to do justice to all the coadjutors who helped him, would be to set forth at least parts of the careers of many eminent men, and that, too, is beyond the limits of this work. All that is possible, then, is to analyse or sum up briefly the main heads of his policy and achievements, with the proviso that, what for the sake of brevity is attributed to him nominally, is really attributable to him with the Councils, both Executive and Legislative, the extensive Secretariat, the Presidencies, and the provincial Governors or Administrators. These heads may be arranged in the following order:—the army, the works of material improvement, the sanitation, the finances, the landed settlement, the legislation, the public service, the national education, the state ceremonies, the foreign policy; and to each of them, as respecting him particularly, a short notice will be afforded.
In the military branch, he had not much to do with the reorganisation of the army for India. That had been done during the interval since his departure from India in 1859. Some changes had been made, against which he had protested from his place in Council at Whitehall, but now he had loyally to accept the accomplished facts, and to make the changes work well through good management. Keeping his eye ever fixed on the national finance, he rejoiced to find the Native Army reduced in numbers, and the overgrown levies (which had been raised during the War of the Mutinies) now disbanded throughout the country or transferred to the newly-organised Police. The strength of the European troops varied from seventy to seventy-five thousand men: which was, in his judgment, the minimum compatible with safety in time of peace. He never forgot what his Native advisers used to drop into his ear during the Mutiny—namely this, that in India the European soldier is the root of our power. Knowing how hard it would be for the English Government to provide, and for the Indian Government to bear, the cost of a larger number, he bent himself to make the European soldiery as effective as possible by improving their life and lot in the East. Everything that pertained to their health, recreation, comfort, enlightenment, employment in leisure time, and general welfare, moral or physical, he steadfastly supported. At the basis of all these improvements lay the question of constructing new barracks or re-constructing old buildings, on reformed principles sanitary as well as architectural; and for this he was prepared to incur an outlay of several millions sterling. Protracted discussions ensued in his Executive Council in regard to the situations for the new barracks, causing delay which distressed him. He insisted that the buildings should be placed in those centres of population, and those strategic points, where old experience had shown that the presence of European soldiers was necessary. So after a while the work of barrack-building went on to his satisfaction. Criticism, even objections, were soon levelled against these operations, and the barracks were styled “palatial,” under the notion that they were extravagantly good; but he was not thereby at all turned from his purpose.
In active warfare operations were undertaken near the Trans-Indus Frontier on two occasions; the first of these, which has already been mentioned at the moment of his arrival in India, was known by the name of Umbeyla, the second was remembered as that of the Black Mountain. Otherwise he thankfully observed the pacification of that difficult Frontier, which had successfully been effected by the policy of himself and his brother from 1849 onwards, as set forth in a previous chapter. One little war, indeed, he had which was from first to last hateful to him, but which he turned to excellent account for British interests, as the event has subsequently proved; this is known to history as the Bhûtan campaign. On his arrival he found that a mission had been already despatched to that semi-barbarous principality in the eastern Himalayas over-looking Bengal, and that the British envoy had been insulted and even maltreated. Redress was demanded, and this being refused, he had resort to arms; and during the course of these operations in a wild, wooded, malarious and mountainous country, a small British force in a hill-fort was cut off from its water-supply by the enemy’s devices, and had to beat a somewhat disastrous retreat. The disaster was soon retrieved by the recapture of the place, and full preparations were made for a decisive advance when the enemy sued for terms; whereon he laid down the British conditions of peace. These being accepted, he was glad to save the lives of a miserable foe from destruction, and the British troops from inglorious warfare in an unhealthy country. The main point in the conditions on which he concluded peace was the cession by Bhûtan to the British of a rich sub-Himalayan tract called the Dûars, on his agreeing to pay a certain sum annually to the Bhûtanese. He felt the value of this tract to the British, as was indeed manifest then, and has been proved by subsequent experience. He knew that the payment of this small subsidy would just preserve the Bhûtanese from that pecuniary desperation which leads to border incursions, and would give us a hold on them, as it could be withheld in event of their misconduct in future; and in fact they have behaved well ever since. But the terms were by the European community at Calcutta deemed inadequate and derogatory after all that had happened; and he was subjected to much severe criticism, which however did not move, though it doubtless grieved, him at this stage of his career.
He rejoiced in the opportunity afforded by the expedition to Abyssinia for helping his old friend Napier to collect an effective force from India, to be equipped for very active service and to be despatched from the Presidency of Bombay.
In respect to material improvement, he pressed onwards the construction of railways and canals. There had been by no means an entire, but only a partial, suspension of these works during the War of the Mutinies, and the period of disturbance which followed; but now as peace reigned throughout the land, he prosecuted these beneficent operations with more energy than ever, and at no previous time in Indian history had progress been so systematised as now. This could only be done by establishing a capital account for the State, according to the principle which, as already mentioned, had been working in his mind when he recently landed in India. The cost of these works having heretofore been defrayed from current revenue, their progress had been precarious, but he would place their finance on a sure basis by treating the expenditure as capital outlay and raising loans for that purpose. The interest on these would be defrayed from current revenue, as he would have no such thing as paying interest out of capital. For the due calculation of the demand to be made on the money-market for the loans, he caused a forecast to be made of the canals and railways recommended for construction during a cycle of years. He proposed that the future railways should be constructed not by private companies with guarantee by the State of interest on outlay, but by the State itself. With a view to lessening the capital outlay in future, he leaned towards the introduction of a narrower gauge than that heretofore in use. The introduction of the capital account into Indian finance has not only stimulated, but also regulated and ensured the material development of the empire; and this is a prominent feature in his administration.
Besides the ordinary arguments for accelerating the construction of railways, there was the necessity of perfecting our military communications, in order to obtain a tighter grasp of the country than heretofore. The lesson of 1857-8 had taught him how much this hold had needed strengthening. Again, beyond the usual reasons for excavating canals of irrigation for agriculture in a thirsty land, he felt the obligation to protect the people from the consequences of drought. No warning, indeed, was required by him in this behalf, otherwise it would have been furnished by the experience of the Orissa famine in 1866-7. In that somewhat inaccessible province the drought occurred one year and the people bore it, but it continued during the second and even the third year, reducing their straitened resources to starvation point; then towards the end of the third year heavy downpours of rain caused inundation to submerge the remnant of the crops; thus, in his own expressive words, “that which the drought spared the floods drowned.” He had been very uneasy about the prospect of the famine, but the province was under the Government of Bengal subject to the control of the Governor-General, and he was bound to consult the local authorities. He accepted for the moment the assurance of the Lieutenant-Governor of Bengal, who had proceeded to the spot to make personal inquiries, to the effect that the precautions taken to prevent mortality from famine were sufficient. Still he remained anxious till further tidings came, and these were bad. Then he caused the most strenuous efforts to be put forth but they were too late to save life, and their efficacy was impaired by a still further misfortune, because contrary gales kept grain-laden ships tossing about within sight of the shore and unable to land their cargoes. Though he was not to blame in all the circumstances, still this disaster cut him to the quick, and he fretted at the thought of what might have been done to save life had he himself been wielding the executive powers locally as in former days, instead of exercising only a general control as Governor-General. The loss being irreparable, all he could now do was to make the strictest inquisition regarding the failure in foresight which delayed the relief in the first instance, to take additional precautions by the light of this melancholy experience, and so to prevent the possibility of its recurrence. Thus under him from that time a new era of development, and especially of canal-making arose happily for Orissa.
For sanitation, he acted on the view which had opened out before him on his way from England for India. The Sanitary Commission appointed by him made searching inquiries and followed these up with suggestions professional or practical. He sanctioned expenditure by Government on drainage, water-supply, open spaces, and the like, in the stations or around the buildings which belonged to the State. In all the places which were made under municipal institutions he encouraged the local corporations to do the same. Through his precept or example a fresh impulse was given to these beneficent works at every capital city, industrial centre, or considerable town, throughout the Bengal Presidency—more than half the empire—and a general quickening of municipal life was the consequence. His influence could not under the constitution of British India be equally direct in the Madras and Bombay Presidencies but there also it was felt as a practical encouragement. Thus though he may not be called the originator of Indian Sanitation, yet he was the founder of it on a systematic basis, and he established it as a department of the State administration.
The finances caused him trouble from the first even to the last day of his incumbency. The scheme for housing and lodging the European army in India, according to humane and civilised plans, was to cost ten millions sterling (for, say, seventy-five thousand men), and out of that he caused five millions to be spent during his five years of office. He was most unwilling to borrow for this purpose, holding firmly that the charge must be defrayed from current revenues, and so it was. But then it caused some difficulty in the finances, and he had to devise additional means for making the income balance the expenses. Always having a heart for the poor, and believing that their resources were not at all elastic, he was resolved to avoid taxing the masses of the population any further. On the other hand he thought that the rich escaped paying their full share. So he proposed to renew the income tax, which had been introduced in 1860 by James Wilson (the economist and financier sent out from England) and remitted in 1862. He was unable to obtain, however, the necessary concurrence of his Council. Then he reluctantly consented to a proposal of the Council that duties should be imposed on certain articles of export which, in the economic circumstances of the moment, were able to bear the impost. The ordinary objection to export-duties was urged in England and even in Parliament, so these were disallowed by the Secretary of State; and thus he suffered a double annoyance. His own proposal had been refused by his Council, and their proposal, to which he agreed as a choice of evils, had been rejected by the Secretary of State. The following year he induced his Council to accept a modified income-tax, under the name of a License-Tax. This was, he knew, inferior to a scientific income-tax, inasmuch as it failed in touching all the rich; still it did touch the well-to-do middle class, heretofore almost exempt from taxation, and that was something. This plan was passed into law by the Legislative Council at Calcutta, but the passage met with embittered opposition from outside in the European as well as in the Native Community; he stood firm, however, and this time was supported both by his Council in India and by the Secretary of State in England. But he knew that this measure, though much better than nothing, was insufficient, and he ceased not from urging the imposition of the income-tax proper. Indeed during his fifth and last year he laid the foundation and prepared the way for that tax, which was actually imposed after his departure, and which during several succeeding years saved the finances from ultimate deficit.
During his five years, however, there were five and a quarter millions sterling of deficit, and two and three quarter millions of surplus, leaving a net deficit of two and a half millions. This deficit was, indeed, more than accounted for by the expenses of five millions on the barracks; but it would never have occurred, had he been properly supported in the sound fiscal measures proposed by him. The financial result in the end, though fully capable of explanation, did indeed fall short of complete success; but this partial failure did not at all arise from any fault of his. Indeed it occurred despite his well-directed exertions. He left India with somewhat gloomy anticipations regarding its financial future. He feared lest his countrymen should fail to appreciate the standing difficulty of Indian finance. He knew that the Natives may have more means relatively to their simple wants than the corresponding classes in European countries, and in that sense may not be poor. But he thought that their power of paying revenue down in cash was very small according to a European standard, and that their fiscal resources were singularly inelastic.
In connection with finance he was much troubled by the failure of the Bank of Bombay. On his arrival in India the American Civil War, then at its height, was causing a rapid rise in the value of cotton in Western India, and an excessive speculation in consequence. On the cessation of the war in 1865 he saw this speculation collapse, and became anxious for the fate of the Bank of Bombay which was a State institution. He did his utmost to guide and assist the Government of Bombay in preventing a catastrophe. But despite his efforts the Bank fell, and its fall was keenly discussed in England generally and in the House of Commons. Then a commission of inquiry was appointed, which after complete investigation remarked upon the steadiness and carefulness displayed by him at least, while it distributed blame among several authorities.