The last item is very significant. It shows that nearly 60 per cent of the income taxpayers of India are supported by miscellaneous investments other than securities and joint stock companies. The item includes the names of merchants, individual manufacturers, farmers, mechanics, professional men and tradesmen of every class.

The returns of the postal savings banks show the following classes of depositors:

Number.
Wage earners352,349
Professional men with fixed incomes233,108
Professional men with variable incomes58,130
Domestics, or house servants151,204
Tradesmen32,065
Farmers12,387
Mechanics27,450

The interest allowed by the savings bank government of India is 3-1/2 per cent.

Considering the awful misfortunes and distress which the country has endured during the last ten years, these facts are not only satisfactory but remarkable, and if it can progress so rapidly during times of plague and famine, what could be expected from it during a cycle of seasons of full crops.

During the ten years which ended with 1894 the seasons were all favorable, generally speaking, although local failures of harvests occurred here and there in districts of several provinces, but they were not sufficient in area, duration or intensity to affect the material conditions of the people. The ten succeeding years, however, ending with 1904 witnessed a succession of calamities that were unprecedented either in India or anywhere else on earth, with the exception of a famine that occurred in the latter part of the eighteenth century. Those ten years not only saw two of the worst famines, but repeated visitations of widespread and fatal epidemics. It is estimated that during the ten years ending December, 1903, a million and a half of deaths were caused by the bubonic plague alone, and that the mortality from that pestilence was small in comparison with that caused by cholera, fever and famine. The effects of those epidemics had been to hamper trade, to alarm and demoralize the people, to obstruct foreign commerce, prevent investments and the development of material resources. Yet during the years 1902 and 1903 throughout all India there was abundant prosperity. This restoration of prosperity is most noticeable in several of the districts that suffered most severely from famine. To a large measure the agricultural population have been restored to their normal condition.

It is difficult in a great country like India where wages are so small and the cost of living is so insignificant compared with our own country, to judge accurately of the condition of the laboring classes. The empire is so vast and so diverse in all its features that a statement which may accurately apply to one province will misrepresent another. But, taking one consideration with another, as the song says, and drawing an average, it is plainly evident that the peasant population of India is slowly improving in condition. The scales of wages have undoubtedly risen; there has been an improvement in the housing and the feeding of the masses; their sanitary condition has been radically changed, although they have fought against it, and the slow but gradual development of the material resources of the country promises to make the improvement permanent.

The chief source of revenue in India from ancient times has been a share in the crops of the farmers. The present system has been handed down through the centuries with very little modification, and as three-fifths of the people are entirely and directly dependent upon the cultivation of the land, the whole fabric of society has been based upon that source of wealth. The census gives 191,691,731 people as agriculturists, of whom 131,000,000 till their own or rented land, 18,750,000 receive incomes as landlord owners and the remainder are agricultural laborers. The landlord caste are the descendants of hereditary chiefs, of former revenue farmers and persons of importance to whom land grants were made in ancient times. Large tracts of land in northern India are owned by municipalities and village communities, whose officials receive the rents and pay the taxes. Other large tracts have been inherited from the invaders and conquerors of the country. It is customary in India for the landlord to receive his rent in a part of the crop, and the government in turn receives a share of this rent in lieu of taxes. This is an ancient system which the British government has never interfered with, and any attempt to modify or change it would undoubtedly be resisted. At the same time the rents are largely regulated by the taxes. These customs, which have come down from the Mogul empire, have been defined and strengthened by time and experience. Nearly every province has its own and different laws and customs on the subject, but the variation is due not to legislation, but to public sentiment. The tenant as well as the landlord insists that the assessments of taxes shall be made before the rent rate is determined, and this occurs in almost every province, although variations in rent and changes of proprietorship and tenantry very seldom occur. Wherever there has been a change during the present generation it has been in favor of the tenants. The rates of rent and taxation naturally vary according to the productive power of the land, the advantages of climate and rainfall, the facilities for reaching market and other conditions. But the average tax represents about two-thirds of a rupee per acre, or 21 cents in American money.

We have been accustomed to consider India a great wheat producing country, and you often hear of apprehension on the part of American political economists lest its cheap labor and enormous area should give our wheat growers serious competition. But there is not the slightest ground for apprehension. While the area planted to wheat in India might be doubled, and farm labor earns only a few cents a day, the methods of cultivation are so primitive and the results of that cheap labor are comparatively so small, that they can never count seriously against our wheat farms which are tilled and harvested with machinery and intelligence. No article in the Indian export trade has been so irregular or has experienced greater vicissitudes than wheat. The highest figure ever reached in the value of exports was during the years 1891-92, when there was an exceptional crop, and the exports reached $47,500,000. The average for the preceding ten years was $25,970,000, while the average for the succeeding ten years, ending 1901-02, was only $12,740,000. This extraordinary decrease was due to the failure of the crop year after year and the influence of the famines of 1897 and 1900. The bulk of the wheat produced in India is consumed within the districts where it is raised, and the average size of the wheat farms is less than five acres. More than three-fourths of the India wheat crop is grown on little patches of ground only a few feet square, and sold in the local markets. The great bulk of the wheat exported comes from the large farms or is turned in to the owners of land rented to tenants for shares of the crops produced.

The coal industry is becoming important. There are 329 mines in operation, which yielded 7,424,480 tons during the calendar year of 1902, an increase of nearly 1,000,000 tons in the five years ending 1903. It is a fair grade of bituminous coal and does well for steaming purposes. Twenty-eight per cent of the total output was consumed by the local railway locomotives in 1902, and 431,552 tons was exported to Ceylon and other neighboring countries. The first mine was opened in India as long ago as 1820, but it was the only one worked for twenty years, and the development of the industry has been very slow, simply keeping pace with the increase of railways, mills, factories and other consumers. But the production is entirely sufficient to meet the local demand, and only 23,417 tons was imported in 1902, all of which came as ballast. The industry gives employment to about 98,000 persons. Most of the stock in the mining companies is owned by private citizens of India. The prices in Calcutta and Bombay vary from $2.30 to $2.85 a ton.