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Full text of "Two speeches on our home and colonial affairs, our national resources, their present and probable future condition; and The British colonies, their present condition and future prospects"

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The Right Honourable VISCOUNT SANDON, 

of the $oarb of fcrabe. 


Believing that no small ignorance existed as to 
the National Resources of the United Kingdom, and also as 
to the condition of the British Colonies and Dependencies, I 
resolved to give to my fellow-townsmen of Dundee sunn- 
information on those subjects by delivering the two follow- 
ing Discources; and, having been requested to publish them. 
and having myself derived much advantage and instruction 
from the studies which I had undertaken as to our Imperial 
Resources, I agreed to comply with the request as early as 
circumstances would allow. I now submit my humble 
efforts to the judgment of the public at large; and, with 
your permission, I have much pleasure in dedicating the 
following pages to your Lordship. 

In the subjects discussed, there is plenty of room for 
wide divergence of opinion, and great danger of falling into 
error in matters of fact. Therefore, I take this opportunity 
of stating that the opinions and statistics were propounded 
with the greatest care ; that the end I had in view was a 
truly national, not a partisan object; and that th< whole 


responsibility for the contents of this pamphlet rests entirely 
, upon my own shoulders. If I succeed in dissipating some of the 
gross errors as to our recent prosperity and present depres- 
sion in trade and agriculture, I shall accomplish one of 
my chief objects in delivering, and in my now publishing 
the first speech. If I shall be able to raise the minds of 
my fellow-townsmen of Dundee perhaps fellow-citizens in 
other places to the vast extent, the gigantic resources and 
magnificent future of our colonies and dependencies, I shall 
consider my labour on the second discourse to be amply 

I am convinced that a grand future awaits our Colonies, 
and that there is no ground for present serious alarm in 
regard to the future resources of the British nation. 

Sincerely thanking your Lordship for the honour you 
have conferred upon me by kindly authorising me to dedi- 
cate my humble efforts to spread reliable information as to 
the state of our affairs at home and in the British Colonies, 

I have the honour to be, 

Your most obedient Servant, 


X4th March 1880, 



5 to 54. 

Scope of Address. Population of United Kingdom. Pauperism. 
Primary education. Area and cultivation. Import of corn. 
Taxes on food. Free trade enormously increased our commerce and 
responsibilities. Other food imports increased. Agricultural imports 
permanent. Tea, coffee, and sugar imports and exports. Imported 
spirits. Excise duty on spirits. Imported wine. Tobacco imported. 
Our commerce supreme. Towns as centres of industry. U nparallel- 
ed growth of commerce. Imported and exported cotton. Indian 
duty on cotton goods. Wool imported and woollen goods exported. 
Jute imports and exports. Most advantageous trade. How success 
to be attained. Silk imports and exports. Our position in textile 
fabrics. Imports and exports of iron. Vigilance and skill needed to 
retain commercial prosperity. Export trade in coal. Imports and 
exports of leather. Imports of wood. Miscellaneous exports and 
imports. Total imports and exports. No alarm at imports exceed in -_r 
exports. Late prosperity largely from excessive speculation. Our 
fiscal policy is based on free trade. Home trade. Mercantile marine. 
^Railways. Conclusion. 



Pas/eg 59 to 124. 

Colonization by Greece and Rome Early modern colonization 
Advantages of colonies Modern colonization first conducted by 
monopolist companies. From their beginning, the English colonies 
had all the elements of a great future Modern policy aimed at an 
exclusive colonial trade English colonies had many signal advantages 
Modern colonies became Asylums from political and religious per- 
secutions General outline of Address First group : Canadian domi- 
nions Early history, area, population, and encouragement to 
agricultural colonists French Canadians Trade Frequent bank- 
ruptcies Shipping and railways Pacific Railway scheme Russia in 
the Pacific Constitution, revenue, and expenditure Forces and 
loyalty of dominion. Second group : African Present war not to be 
discussed Dangers arising from masses of savages on borders The 
Zulus and their chiefs African sources of wealth Need of immi- 
grants Splendid future Cape and Natal colonies As to African 
colonies three questions arise : Peace, burden of present war, and con- 
federation. Third group, Australian : Large British investments in 
Australian colonies Area, population, trade, and constitution, &c., of 
New South Wales, Victoria, Queensland, South Australia, Western 
Australia, New Zealand, and Tasmania As to Australian colonies 
three questions arise : Commercial policy, defence, and confederation. 
Fourth group : West Indian colonies and minor dependencies (1.) 
West India colonies Climate Trade Coolie emigration Sources 
of sugar supplies (2.) Ceylon : Area and population Trade 
Mercantile system predominates Constitution (3.) Hong Kong : 
Area, population, trade, and constitution General considerations as 
to the whole of our Colonial empire are immigration, commercial 
policy, defence, and confederation Conclusion, 






Scope of Address. Population of United Kingdom. Pauprri.-ni. 
Primary education. Area and cultivation. Import of corn. 
Taxes on food. Free trade enormously increased our commerce and 
responsibilities. Other food imports increased. Agricultural imports 
permanent. Tea, coffee, and sugar imports and exports. Imported 
spirits. Excise duty on spirits. Imported wine. Tobacco imported. 
Our commerce supreme. Towns as centres of industry. Unparal- 
leled growth of commerce. Imported and exported cotton. Indian 
duty on cotton goods. Wool imported and woollen goods exported. 
Jute imports and exports. Most advantageous trade. How success 
to be attained. Silk imports and exports. Our position in textile 
fabrics. Imports and exports of iron. Vigilance and skill needed to 
retain commercial prosperity. Export trade in coal. Imports and 
exports of leather. Imports of wood. Miscellaneous exports and 
imports. Total imports and exports. No alarm at imports exceeding 
exports. Late prosperity largely from excessive speculation. Our 
fiscal policy is based on free trade. Home trade. Mercantile marine. 
Railways. Conclusion. 





We meet under the gloom of a great 
and lamentable disaster. The Tay Bridge has 
given way ; and, in a moment, between seventy 
and eighty of our fellow-creatures have instan- 
taneously been hurled into eternity. This is 
neither the time nor the place to give any opinion 
as to the terrible calamity which has overtaken 
us ; but there can be no doubt that a most search- 
ing public inquiry as to its cause is absolutely 
required, and will unquestionably be made. 

Six years ago, I intimated that, as opportunity 
arose, I would endeavour to explain my views as 
to public affairs both at home and abroad. What 
great changes have since occurred! A givat 
European war, involving vast consequences, has 
been waged arid brought to an end. A great wa \ v 
of bad trade has swept over the world. I have 
already discussed that war and its results ; and 
I now appear before you, my fellow-townsmen, to 


lay before you my views as to " Our national 
resources : their present and probable future 
condition/ 7 

We have many things, contributing to our 
wealth, happiness, and refinement, for which we 
ought to be thankful. We possess a moderate 
climate. At home we have a rich and fertile 
territory, intersected by splendid rivers for 
navigation ; and abroad we have abundance of 
prolific virgin soil in our colonies for our surplus 
population. Surrounded by the ocean, we have 
a great highway to all the important centres of 
commerce in the world, and, by means of our 
rivers, we have an easy access to every district in 
our own country. We have canals, bridges, and 
railways all over the country to aid us in trans- 
porting all kinds of merchandise from one place 
to another for home consumption or foreign 
commerce ; and, by means of our gigantic 
mercantile navy, we have surpassing facilities 
for supplying ourselves and foreign nations with 
all the necessaries, conveniences, and luxuries of 
life. We have also a free, rich, and prolific 
literature to spread abroad intelligence to every 
city, town, and hamlet of the kingdom. Great 
and wealthy institutions have been dedicated to 
]the advancement of literature, science, and art. 
( Museums, galleries of art, and public and private 
libraries have been spread all over the country, 
and are effecting a grand and noble work in con- 
tributing to the information, the refinement, and 
the civilization of the people. Schools, colleges, 
and universities are educating the best spirits of 
the nation up to a higher standard of excellence 


than has ever yet been known. Within the 
limits of order im<l morality, all opinions may be 
expressed without fear or danger of punishment. 
Thought is here, in this land of freedom, ;is five as 
the air we breathe. The telegraph also ihishrx 
our lightning-sped messages to every part of the 
kingdom, and almost to every part of the globe. 
In the style of living, not only of the nobility, 
but of the commercial classes, there is great 
splendour. Nay more, the dwellings of the poor, 
deficient as they may be in many things, indicate 
a great recent advance in improvement and 
comfort. What a wonderful progress has lately 
been made, in all the great towns of the kingdom, 
in all that appertains to civilization. Truly, 
the subject upon which I am to speak this even- 
ing is far too great for one single discourse. 

The total population of the United Kingdom 
is 34,000,000 : of England and Wales, 26,000,000 ; 
of Scotland, 3^ millions ; and of Ireland, 5^ 
millions. In 1840, the total population was 26^ 
millions ; and that of England and Wales was 
15f millions ; of Scotland, 2 millions ; and of 
Ireland, 8 millions. Hence, in less than 40 years 
the population of England and Wales has 
increased about 10 millions, and of Scotland 
1 million, and the decrease in Ireland has been 
almost 3 millions. Famine and emigration have> 
depopulated Ireland ; and again the cry of im- 
pending famine is heard in that unfortunate and 
unhappy country. Idleness, absenteeism of 
landlords, and political agitation have a great 
deal to do with the penury and distress of 
Ireland. But this is not the time to condemn. 


iThe cry of real distress has gone forth in many 
(parts of Ireland, and that cry will not, I feel 
Nsure, be raised in this country in vain. 

The total amount of the national debt is 
778,000,000 ; and the yearly interest amounts 
to 28,000,000. All this debt has been of 
modern creation does not go further back than 
the reign of William III. and has chiefly been 
incurred in the prosecution of wars. Jealousy 
and aggrandisement are the chief mainsprings of 
war. Wars beget debt ; and debt involves the 
pledging of the national resources for payment of 
the principal and interest. A national debt such 
as ours is a serious burden upon the people, and 
a great restraint upon our productive energies. 
I am in favour of a large yearly reduction of the 
national debt, and I think that a considerable 
sum should be annually set aside in the Budget 
for that purpose. 

Our population is large, our wealth great ; 
but throughout the United Kingdom the cost of 
pauperism is on the increase. No doubt, pauper- 
ism, as tested by numbers, has lately been on the 
decrease in England and Scotland. Since 1849, 
the greatest total number of paupers for England 
and Wales was attained in 1871, which was a 
year of great prosperity ; and the lowest point 
was reached in 1878, and since then the tendency 
has been in an upward direction. In actual 
public relief of the poor, there were spent in Eng- 
land and Wales 5| millions sterling in 1849, and 
above 7i millions sterling in 1878. What is the 
condition of legalised pauperism in our own part 
of Kingdom ? Till 1845, the poor of Scotland were 


maintained, for the most part, by the Kirk-ses- 
sions of the Established Church, by voluntary 
contributions, and without the imposition of any 
public rate. In 1846, the amount of rates col- 
lected was 300,000, and the amount has gra- 
dually risen till it was trebled in 1878. In 1864, 
the total number of paupers and their dependents, 
exclusive of casual poor, in receipt of Parish relief 
was 120,705 ; and in 1878, was reduced to 94,671. 
Again, take the numbers for Ireland. The num- 
ber of paupers in receipt of Union relief in 
Ireland was 68,135 in 1864, and 91,807 in 1879. 
Thus, the paupers have been on the increase, 
and, strange to say, in an exactly opposite direction 
to the pauperism of England and Scotland ; that 
is to say, out-door relief is on the increase in 
Ireland, and on the decrease in Great Britain. 
The total amount expended in 1878 for the relief 
and management of the poor in Ireland was 
one million pounds sterling. 

What do you think has been the total amount 
spent in the United Kingdom for the relief and 
management of the poor since 1840 ? More than 
400,000,000, which is a larger sum than the half 
of the national debt. How does it happen that, 
in the richest and most industrious countiy of 
the world, there is so much wretchedness and 
poverty ? Because our fiscal system is wrong 
in raising so much of the national taxation 
from customs and excise, and because a bad 
system of Poor Law administration breeds, 
sustains, and nourishes large masses of the people 
in idleness, improvidence, and vice. 

With such misery around us, what, let me 


ask, have we done to remove ignorance, and to 
instil the youth of the rising generation with the 
seeds of knowledge, the elements of primary 
education ? For Great Britain alone, there was 
an average attendance of children at the primary 
schools of a quarter million in 1851 ; and of two 
and a half millions in 1878. Hence, the average 
attendance has been very largely increased during 
the last quarter of a century. But, of course, the 
national expenditure on this head has also been 
very largely augmented. The Parliamentary 
grant for Great Britain alone has risen from 
164,312 in 1851 to 2,750,000 in 1879. Asyou 
are aware, the expense of the national primary 
schools is defrayed fromfees and imperial and local 
funds. For this divided responsibility the reason 
is indefensible. Doubtless the time will come 
will soon arrive when the whole cost will be 
paid out of the national exchequer, and primary 
education will be free and compulsory through- 
out the kingdom. 

Gentlemen, we cannot live by education, nor 
by political institutions, however excellent. We 
must do something to earn our daily bread, buy 
clothes, and provide homes for ourselves and our 
families, or be dependent upon others for the 
supply of those absolute necessaries of life. 
~, the soil is the primary source of all wealth, 
and, notwithstanding the widely spread and 
gigantic nature of our commerce, its cultivation 
gives rise to the greatest industry in the country. 
What a pity it is that we do not direct more 
attention to this source of wealth. Had we in- 
vested the capital we have lost by lending our 


money to foreign nations, we wolild have greatly 
developed the fertility of our own soil, and we 
might almost have been independent of foreign 
supplies of food. The value of British agricul- 
ture, it is said, on good authority, could be 
doubled ; and the nation seems indifferent to the 
loss the enormous loss we sustain by not fully 
utilizing the means at our disposal for obtaining 
the indispensible necessaries of life. People must 
wake up to this great national loss. They must 
be taught that, without serious neglect, wealth 
cannot be thus left ungathered. Much has been 
done to enrich the soil and make it more prolific. 
Let us press on the leaders of the nation that the 
soil ought to be cultivated to the highest degree, 
and that measures should be taken to encourage, 
and if necessary enforce, the cultivation of the 
soil as a duty, as well as a right. 

The total area of the British Islands is 
76,000,000 acres, of which 26,000,000 are moun- 
tain pasture and waste, and 50,000,000 acres are 
in grasses, meadows, permanent pasture, woods, 
and forests. Since 1869, the acreage of wheat 
in Britain has been diminished by about 
150,000 acres ; the acreage of green and various 
crops is pretty nearly the same ; and that of 
permanent pasture has been increased nearly by 
2,000,000 acres. The live stock of Britain has 
also been increased since 1867. With regard to 
Ireland, the falling off in the corn crops is greatrr 
than in Britain, and shows a decrease of 300,000 
acres, of which 100,000 acres were in wheat and 
200,000 in oats. The green crops also show a 
falling off to the extent of 100,000 acres, and the 


acreage under flax has been diminished, more 
than 100,000 acres since 1867. But, on the 
other hand, the acreage under grasses has been 
increased about 300,000 acres, and permanent 
pasture is very much the same as it was in 1867. 
The live stock of Ireland has, on the whole, 
diminished. The general result is that there 
were 400,000 acres less under corn crops in the 
United Kingdom in 1878 than in 1867 ; that 
there were 100,000 acres less under green crops ; 
that the grasses and permanent pasture had 
been increased by 2,000,000 acres. The live 
stock was very much the same in 1878 as in 

The extension of pasturage and the diminu- 
tion of arable land are not subjects for con- 
gratulation. In a national point of view, the 
cultivation of arable land is more advantageous 
than an extension of pasturage. More labour is 
required in the former than in the latter, and 
less dependence on foreign nations exists when 
arable land is cultivated rather than pasture. 
Suppose we were dependent on our enemies for 
a considerable portion of our food or of our raw 
material : we might be instantly brought face 
to face with famine and all its attendant horrors, 
or the loss of our trade and commerce, with all 
its attendant evils of loss of wealth, loss of power, 
and loss of people by emigration. The Dutch 
were the richest people in the world in the 17th 
century. They were thrifty and simple in their 
mode of living, but a time came when, during a 
war waged with England and Prance, there was 
a difficulty in procuring a sufficient supply of 


bread. Wages rose, the cost of production of all 
Dutch commodities increased, her manufactures 
were adversely affected, and ultimately destroyed 
by this country, and have never recovered the 
shock of the last century. 

The condition of the agricultural interest in 
this country is far from being satisfactory ; but, 
for the first time in our history, the food of 
the people is cheap and abundant. What re- 
medies will be suitable for agricultural distress 
will be most conveniently discussed after the 
Royal Agricultural Commissioners, lately ap- 
pointed to inquire into the causes and remedies 
for that distress, have submitted their Report to 
Parliament. For the present, I would ask your 
attention to an important feature in our national 
existence, namely, the continually increasing 
quantity and value of the food brought to us 
from other countries for home consumption. 

Of corn namely wheat, barley, oats, maize, 
and all kinds of flour the total number of cwts. 
imported into the United Kingdom was 15J 
million cwts. in 1840, 31 i million cwts. in 1849, 
75 J million cwts. in 1870, and 132 million cwts. 
in 1878, and the values for 1840 were 9J millions 
sterling, and for 1878, 59,000,000. Hence, 
within 40 years, the total importation of corn 
has increased nine times in quantity and six 
times in value. Our exportation of corn is 
small. Therefore, it is clear that we are largely 
dependent on other countries for one of the 
prime necessaries of life. Not only so, but I 
may add further, that our present agricultural 
produce could not supply one-third of the popu- 


lation of the United Kingdom with the neces- 
saries, far less many of the luxuries, of life. 

Almost without exception, no customs duty is 
imposed on articles of necessary or useful food. 
The exceptions are cocoa, coffee, currants, raisins, 
and tea. As to all these articles, except the 
last, there would be no difficulty, and con- 
siderable advantage in adopting an absolutely 
free trade policy. With the exception of the 
duty on tea, the revenue received is insignificant, 
and the percentage of duty on the value is high. 
Tea brings 4,000,000 into the national ex- 
chequer, and the percentage of duty on the value 
is upwards of 40 per cent. 

Since 1870, the last remnant of the import duty 
on corn was repealed. Most fortunately is this the 
case; for,ata time when, under the old corn laws, we 
would have been paying a high price for a limited 
quantity, we have an abundant and cheap supply. 
The importance of a cheap and abundant supply 
of corn indeed, of all food, clothing, and lodging 
for the nation cannot be exaggerated. To aid 
in obtaining this supply is one of the primary 
duties of Government ; and to cheapen the means 
of living, to free agricultural-products and manu- 
factures from all shackles of taxgatherers, and to 
enable useful commodities of all kinds to circulate 
freely, are principles which lie at the foundation 
of all just and equitable taxation. Whatever 
taxation makes the poor contribute more to the 
national exchequer than the rich, which strikes 
at the sources of the poor more than those of the 
rich, or which restricts the natural movements of 
commerce, is unjust and pernicious. Provided 


we can get foreign countries to give us their 
corn for our manufactured goods, the large and 
increasing importation of corn is neither alarm- 
ing nor unsatisfactory. Still, it is clear, we must 
have markets for our goods before we can have 
a bare supply of the necessaries of life. We 
must, therefore, be prepared to prosecute and 
defend our commerce in every part of the world. 
Free trade is a grand system ; is theoretically the 
true system of political economy ; but its whole 
advantages cannot be reaped till there is less 
jealousy and suspicion, and more justice and 
freedom in the world than now exist. Free 
trade has enormously increased our commercial 
relations. Still, do not forget that it has also in- 
creased, and will still further increase, our arma- 
ments and expenditure, naval and military. 

The importation of all other kinds of food has 
also been lately increased. Oxen, bulls, cows, 
and calves were prohibited in 1840 ; but they 
were allowed to be imported a few years after- 
wards. As you are also aware, a large and 
increasing trade is carried on in imported 
butcher meat. 

The number and value of live animals 
have been gradually increasing, and last 
year 1,000,000 cattle and sheep, and pigs, 
valued at 7 millions sterling, were im- 
ported. In 1840, about 6,000 cwts. of bacon 
and ham, valued at about 15,000, were im- 
ported ; in 1878 there were 4^ million cwts., 
valued at nearly 8| millions sterling, imported. 
In 1840, about million cwts. of butter, valued 
at nearly 1 million sterling, was imported ; and 


in 1878 there were 1| million cwts., valued at 
nearly 10 millions sterling, were imported. 
Eggs have also become an important item in 
our imports, and between 1840 and 1878 rose 
from 96,000,000, valued at less than 1,000,000, 
to 783,000,000, valued at 2 millions sterling. 
Kice has also been increasing in favour with the 
public within the dates chosen for our review. 
In 1840, the importation of rice was fully 
million cwts., valued at close on a \ million 
sterling ; and in 1878 was fully 6,000,000 cwts., 
valued at nearly 3 millions sterling. The value 
of dead meat and provisions imported in 1878 
has been estimated at 29 millions sterling. 

Our imports thus appear to be enormously 
swollen by agricultural produce, corn, cattle, 
&c.,and certainly do not reach a much smaller sum 
than 100,000,000 annually; while, on the 
other hand, the value of our home agricultural 
produce has been estimated at 260,000,000, 
The importations of corn and animals, and other 
agricultural produce, must, for all practical pur- 
poses, be dealt with as a permanent and increas- 
ing factor in all our calculations as to the future 
condition of the country, e.g. rent, &c. ; and in all 
probability it will go on increasing in quantity as 
regards corn and animals, and as regards all of 
them in value. To re-impose a protective tariff 
on corn is downright madness. It would cause 
a revolution. The loss of the farmers has lately 
been great, and there is no immediate appear- 
ance of any improvement. A lowering of rents 
is therefore an absolute necessity. Eents rose with 
the national prosperity ; they must fall in the days 


of adverse fortune. Commerce and agriculture arc 
inseparably linked together. The prosperity 
of the one means the prosperity of the other, and 
the adversity of the one the adversity of the 

Moreover, landlords and farmers must direct 
their attention to what will pay. Russia and 
Hungary have been beaten out of our corn mar- 
ket, and the United States have taken their place. 
Our transatlantic brethren in the States might 
become the greatest food producers in the world ; 
but they will have keen competitors in Canada, 
Australia, and British India. 

Of tea, there were imported in 1840 about 
28,000,000 Ibs., valued at 3^ millions sterling ; 
and in 1878, close on 205,000,000 Ibs., valued at 
13,000,000. Thus the quantity has been in- 
creased seven-fold, and the value has only been 
increased four-fold. As a rule, the greater the 
production of any commodity, the cheaper it is. 
Increased demand enables greater improvements 
to be made in production, and most of all in 
manufactures, but less, though yet considerable, 
in all agricultural products. The importation of 
coffee has also been greatly increased both in 
quantity and value since 1840, but its value has 
been somewhat proportionately increased. Thus, 
in 1840, there were 70,250,000 Ibs., valued at 
less than 2,250,000 imported ; and in 1878, 
there were 1 million cwts., valued at 6,000,000, 
imported. Cocoa and chocolate are also in 
greater demand than ever before. 

Sugar is largely imported into this country, 
and the importation is increasing. In 1840, 


there were imported 4^ million cwts. of sugar, 
valued at nearly 10,000,000 ; and in 1878, 
19,000,000 cwts., valued at 21,000,000. Com- 
paring the years 1840 and 1878, the importation 
of refined sugar has been almost increased 20 
times in quantity and value, and was even 
greater in 1877. The importation of raw sugar, 
for the same years, has been nearly doubled in 
value, and trebled in quantity. 

The home sugar refiners have been alarmed 
at the results of foreign competition in their in- 
dustry during the last few years, and complain 
and justly that their trade is being injured by 
an artificial system of bounties given by foreign 
countries on exported sugar. Practically, we 
are getting sugar in this country at less than it 
can be had in France. The amount paid out of 
the national exchequer of France alone as 
bounties on exported sugar is 1,000,000 a year. 
This state of matters might be all very well if it 
were to last for ever ; but as, in the meantime, 
our own sugar refiners are, or where till lately, 
working at a great loss, and a large body of 
workmen are in danger of being permanently 
driven out of their employment, and our own 
trade may be utterly ruined, a Parliamentary 
Inquiry has been ordered. Whatever the Com- 
mission may propose as a remedy, we ought 
certainly to insist upon obtaining our rights 
under treaty with foreign powers. 

Retaliatory duties, or, if you prefer, counter- 
vailing duties, may sometimes be effective in 
bringing about an adjustment of international 
fiscal duties ; but they are not always con- 


venient, and must be imposed with a deliberate 
and well ascertained object. Remember the 
end of such duties is to bring about a just 
equality in international taxation ; and, when 
this object cannot be attained, they arc worse 
than useless. The French and English followed 
the Dutch to India, monopolised the Eastern 
trade, and imposed heavy duties on Dutch 
goods coming into their Indian territories. 
The Dutch, however, did not impose heavy 
port and customs dues against them. Why ? 
Because they had few natural sources of wealth ; 
because they were dependent on other countries 
for the raw materials of their manufactured goods ; 
and because a taxation on those articles would 
have been imposed on themselves. To beggar 
yourself is not the way to become rich ; to 
beggar your neighbour is neither just nor 
honest. I see no objection, on principle, to 
retaliatory duties ; but I see many practical 
difficulties in carrying out the scheme with 
success. Such a policy is, e.g., sure to cause 
a good deal of ill-will ; and may involve retali- 
ation, to be followed by retaliation without end. 
To impose retaliatory duties, in order to convert 
protectionists from their errors, should be the 
last resort of the advocates of free trade. 

We have also an export trade in sugar, and, 
notwithstanding the outcry raised against foreign 
bounties, and the alleged threatened extinction 
of the sugar industry in this country, the Parlia- 
mentary returns show a continuous and almost 
uninterrupted increasing export trade in refined 
sugar. In 1864 the refined sugar exported did 


not exceed 120,000 cwts., valued at 200,000 ; 
and in 1878 there were exported 1,042,000 
cwts., valued at nearly 1J million sterling. 
Hence it appears that the real complaint is 
not that the export trade is being destroyed by 
foreign competition, but that the home trade has 
been, and is still being injured by foreign sugar 
refiners. The import duty on sugar was finally 
abolished in 1874. 

The importation of spirits, rum, brandy, and 
other foreign and colonial spirits next demands 
our attention. In 1864, it was llf millions 
proof gallons, valued at 2J millions sterling ; 
and in 1878, 12^ millions proof gallons, valued 
at fully 2J millions sterling. During the last 
14 years, the importation was highest in 1876, 
when the quantity was 21,000,000 proof gallons, 
and the next highest point was reached in 1870, 
when it was 17^ millions proof gallons. The 
revenue derived from the customs duty on 
foreign and colonial spirits was nearly 3,000,000 
sterling in 1864, and was fully 5| millions ster- 
ling in 1879. 

The quantities I have just given do not, of 
course, show the quantity of spirits upon which 
excise duty was paid, and was retained for home 
consumption, nor of spirits exported. In 1864, 
duty was paid on nearly 52,000,000 bushels of 
malt for home consumption, and on a regularly 
increasing quantity up to last year, when duty 
was paid on 64 million bushels. Duty was also 
paid on 20 million gallons of spirits for home 
consumption, and on a regularly increasing 
quantity up to last year, when the quantity was 

PRESENT AND PRoiiAiiLi-: i'i Tt:i;i; CONDITION. 21 

30,000,000 gallons. What all this malt, and all 
those million gallons of spirits arc ns miicles in 
the hands of consumers, 1 do not know, and dare 
not guess. Certainly the total quantity must be 
something astounding. The exri>r duty paid 
on spirits and malt in 1864 amounted to 15f 
millions sterling, and on spirits, malt, and su^;u 
used in brewing in 187J), amounted to 22f 
millions sterling. 

Foreign countries complain of our high tariffs 
on intoxicating liquors, and complain that, what- 
ever the cause, the tariffs are prohibitive. Thus, 
the Germans complain of our high duties on 
spirits, and the Spaniards and Portuguese of our 
high duties on their wines. Our answer is that 
those high duties have been imposed for revenue 
and not protection, and that the import duty has 
been affixed to a graduated scale of alcoholic 
strength by way of compensation to the excise 
duties on alcohol made in this country. We 
must not, however, conceal from ourselves that 
all high duties are bad in their very nature, and 
impose restraints on free trade. 

The wine imported into this country, I need 
scarcely say, is very great. We imported 15^ 
million gallons of wine, valued at 5,000,000, 
in 1864; in 1869, fully 17,000,000 gallons, 
valued at 5^ millions sterling ; in 1874, 18 J 
million gallons, valued at fully 6f- millions 
sterling ; and in 1878, nearly 16^ million gallons, 
valued at 6,000,000. These data are instruc- 
tive ; for they are a clear proof of the recent 

rosperity and present depression of our affairs. 

eople who had large incomes a few years ago 


have been greatly reduced in their circumstances. 
Their means of spending on luxuries have been 
diminished. The importation of wines has, 
therefore, been a good deal lessened. Bad trade 
in 1878 brought down the importation of wine 
three quarters of a million sterling in value as 
compared with the prosperous times of 1874. In 
contrast with this result, I would call your atten- 
tion to the increase in the excise duties on malt 
and spirits in 1878. I believe the causes of this 
were twofold, namely, spirits and beer have 
taken the place of wine to a certain extent, and 
the habits of frugality and self-restraint are not 
so highly developed in the great mass of the 
people as in those who are better educated, have 
better homes, more extensive means for recrea- 
tion and amusement than they. The customs 
duty paid on wine in 1864 was 1 millions 
sterling ; and in 1878, nearly 1 millions 

Our export trade in British spirits has been 
diminishing in quantity and value since 1864, 
when the quantity was 4 million gallons, and the 
value half a million sterling ; and in 1878, the 
quantity was 1 i million gallons, and the value 
395,000. The export of beer and ale has also 
been on the decrease, but not to the same extent 
as British spirits. In 1864, the value exported 
was fully If millions sterling, and was slightly 
less in 1878 than in 1864. The year 1874, 
when the value was 2 millions sterling, is the 
highest for the exports of beer and ale during 
the last fourteen years. Therefore, however much 
we may be drinking the liquors of other 


countries, foreigners are evidently not taking 
kindly to the use of our beverages. 

Tobacco is another article largely imported 
into this country. The quantity of the manufac- 
tured article has been decreasing since 1864, and 
the quantity of the unmanufactured article has 
been increased by one-third. Taking the manu- 
factured and unmanufactured tobacco together, it 
appears that, in 1804, the quantity imported was 
(>7^ million Ibs., valued at 3?, millions sterling ; 
and, in 1878, 1)4 million Ibsf, valued fully at 3 
millions sterling. Thus it would seem the Philipic 
against the use of tobacco, written by King 
James, has not had much influence on the sub- 
jects of his successors. The customs duty paid 
on tobacco and snuff was 6,000,000 in 1864, 
and 8J millions sterling in 1879. 

I now wish to direct your attention to 
another branch of our subject. We are supreme 
in the arts of industry and the pursuits of 
commerce. Our pre-eminence has been the 
result of many important circumstances. 

From the end of last century, we took 
the lead of all nations in commercial greatness. 
Two periods greatly favoured British commerce : 
First, the war of the Spanish succession 
from 1702 to 1713, concluded by the peace of 
Utrecht ; and, secondly, the seven years war 
between 1756 and 1763, terminated by the 
treaty of Paris. At the beginning of this cen- 
tury, the estimated annual value of iron manu- 
factured was insignificant. The annual total value 
of coals and iron produced in the United King- 
dom now amounts to 65,000,000. The cotton 


trade was creeping into importance towards the 
latter end of 18th century, when the inventions 
of Arkwright, Hargraves, Oompton, and Cart- 
wright gave it an impetus which it has felt ever 
since. In fact, inventions and discoveries in 
the last century greatly augmented our indus- 
trial progress. Watt alone, by his application 
of steam as a motive power, has vastly increased 
our productive capacity ; and numerous in- 
ventors have also conferred incalculable benefits 
on our industrial capacity. Take a single in- 
stance of what has been achieved in one of our 
great industrial employments. In 1741, a Ib. of 
coarse cloth, half cotton and half linen, cost 4s. 6d. ; 
now the same article can be had for 2d. The 
greatest sources of our commercial prosperity- 
what, above all things, give us our supremacy 
in industrial pursuits are our immense stored- 
up capital, our highly organised division of 
labour, our wonderful mechanical skill, and our 
great practical ability in superintending and 
managing our stupendous workshops and com- 
mercial undertakings. Another source of our 
commercial prosperity is the wide extent of 
our markets, and the wealth of our colonies 
and dependencies, affording us ample scope for 
our industrial energy, and enabling us to get, in 
exchange, from every quarter of the globe, the 
richest and choicest articles of the world's best 
and rarest things for food, for use, for ornament. 
Our conquests in the East and West have, indeed, 
supplied us with an extensive area for our ener- 
gies in commerce as well as in the power to 
govern. America, Africa, Australia, and our 


numerous colonies ;m<l dependencies all over the 
world have also afforded us ample scope for the 
restless energy of our race in siilxluing the uncul- 
tivated and unknown places of the earth, and in 
opening up markets for our products in exchange 
for the corn, wool, and cotton which our hardy 
pioneers of civili/ation produce in their hoiiic 
far away across the sea. 

Beyond all doubt, we are ti ivstlos, ener- 
getic, and intrepid people, deeply enibued with 
the love of freedom, and with habits of industry 
and enterprise. We are also great and opulent 
above all the other nations of the earth. With 
commercial greatness as our aim, we have 
become the greatest conquerors of the world. 
Our policy of conquest and acquisition has gone 
on for three centuries. Let us be on our guard 
against the mad thirst for conquest, which was 
the proximate cause of the downfall of several 
great and powerful ancient Empires. Strange as 
it may seem, we have made our greatest and 
most permanent conquests since we entered on 
our career of commercial supremacy. Those 
who are now so loud in crying out for retrench- 
ment would do well to consider, amongst other 
things, the origin, progress, and foundation of 
our commercial greatness. Do not let us forget 
that we have the most powerful reasons for keep- 
ing open and extending the markets for our 
trade and commerce ; and that, at the present 
time, some of the greatest European States are 
deliberately pushing our goods away from them, 
and have entered upon a career of protection, 
and even prohibition. 



During the last forty years, the growth of our 
commerce has been unparalleled ; and of this 
great industrial activity the towns are, of course, 
the great centres. 

Nor need we go far away from home to see 
what our commercial success has effected. What 
a difference there is between what our own town 
is, and what it was at the beginning of the 
present century. Its population has increased 
with great rapidity. Its wealth has been augu- 
mented to an incredible degree. Its people, its 
merchants and wealthy burghers, and skilled 
workmen, have made wonderful advancement in 
their modes of living, their houses, their material 
comforts, their public and private buildings, their 
moral, intellectual, and social well-being. Think 
for a moment of the splendid streets opened, the 
grand buildings erected, the magnificent private 
houses built, the spacious docks formed, the splen- 
did Esplanade constructed, the gigantic Bridge 
which but lately spanned our magnificent river- 
all within the last few years and you will, at 
once, understand how great has been the progress 
made in our own midst in the last quarter of a 

Other causes than those I have mentioned 
have, no doubt, contributed to our industrial pros- 
perity. Thus, freedom of trade has had no small 
has had a very great share in establishing our 
commercial greatness. Freedom of trade is as 
yet a modern principle even amongst ourselves, 
and is in no great favour with many powerful 
nations abroad, and is even in disfavour with 
some of our own colonies. Still I believe that 


the principle is destined to be accepted by all 
the civilized nations of the world. As men 
grow (Veer and more enlightened, and are less 
governed by the crushing force of military des- 
potism, it will be accepted by men as the best 
guarantee of peace, happiness, and prosperity. 
Whatever the immediate destiny of this prin- 
ciple, there can be no question about its having, 
up till now, given us a great advantage over pro- 
tectionist countries. Its adoption has effected 
an entire revolution in our customs and excise 
duties, and the result is that there are very few 
articles imported upon which any tax is im- 
posed, and several of these duties are assessed 
merely as countervailing taxes on articles falling 
under our own internal excise. Amongst many 
other beneficial effects of free trade, one has un- 
questionably been te^p^^t'S^the predominant 
influence in the motets of ttte\ world. As yet, 
where there is fr^Pcompetitio%Vjwe can sell all 
the chief article!* of ^our ^taflp industries as 
cheaply as, nay nWje^ cheaply than, any people 
in the world. For t^fi^^j#ty-live years of the 
present century, our ilffp6rts did not exceed 
50,000,000 a-year, nor did the real annual 
value of our exports exceed 48,000,000. Now, 
the imports are valued at 368,000,000, and the 
exports at 245,000,000 a-year. Let me now 
descend to the arena of particular articles, and 
thus give you, in a reliable form, some details as 
to our position in the rank of industrial nations. 
I take the cotton trade first. In 1864, nearly 
8,000,000 cwts. of raw cotton, valued at 78 
millions sterling, were imported ; and, in 1869, 


nearly 11,000,000 cwts., valued at slightly less 
than 57,000,000 ; in 1874, almost 14,000,000 
cwts., valued at 46J millions sterling ; and in 
1878, 12,000,000 cwts., valued at 33 millions 
sterling. These quantities and values are re- 
markable, because they prove a very gradual 
diminution in value, and an unequivocal increase 
in quantity of the raw material of one of our 
principal staple trades. Last year, raw cotton 
was nearly four times as cheap as it was in 1864. 
In 1840 the quantity of raw cotton imported 
was about 5,000,000 cwts., and was nearly treble 
in 1878. Let me now give you the exports in 
cotton goods. In 1864, there were exported 
nearly 75| millions Ibs. of cotton yarn, valued at 
9,000,000 ; and, in 1878, fully 250^ millions 
Ibs., valued at 13,000,000. Thus, comparing 
1864 and 1878, the exported cotton yarns have 
been fully trebled in quantity, and have only in- 
creased in value by half, and a comparison insti- 
tuted between 1874 and 1878 would show^ more 
unfavourable results. Rightly to understand 
these remarkable facts, we have to remember 
that raw cotton imported from abroad had 
greatly fallen in value ; that the cost of produc- 
tion in this country had been considerably 
diminished ; and that a lucrative trade for some 
years had attracted capital to the cotton trade, 
and caused over production, and brought about 
an almost ruinous reduction of price. Doubt- 
less manufacturers kept on producing after the 
trade had ceased to be profitable, and, rather 
than lessen production, worked, in many in- 
stances, at a loss. 



As to cotton piece goods, the total exported 
in 1864 was 1,752 million yards, valued at 45f 
millions sterling ; in 1869, was 2,868 million 
yards, valued at 53 millions sterling ; in 1874, was 
3,606 million yards, valued at 59| millions ster- 
ling ; and in 1878, was 3,616 million yards, valued 
at 53 millions sterling. Hence, in 14 year-. 
the cotton manufactured goods exported has been 
doubled in quantity, and only increased one-fifth 
in value. Here again the considerations which 
were suggested as to cotton yarns apply to 
manufactured cotton goods ; and will explain 
why the values have not held pace with the 
increased exported quantities. I do not pretend 
to say that the disproportion is satisfactory. On 
the contrary, I think it is not. Still, the expla- 
nation as to the causes of the disproportion ought 
to allay the alarm which some people have 
displayed in speaking of our ruined cotton trade. 
Improved machinery necessarily diminishes the 
cost, and, therefore, value on exportation ; and 
the questions which arise are : (1) Can we be 
deprived of our cotton markets ? (2) Can we 
manufacture cheaper than any other country ? 
(3) Are the profits enough to satisfy manu- 
facturers ? and (4) Are wages high enough to 
satisfy the workers ? On all these points, I 
think, we are at least, for the present, more 
favourably situated than any other country. 

An important and pressing question here 
demands a passing notice. For certain classes 
of cotton goods, India has long been, by far, our 
largest customer. But, generally speaking, our 
whole exports to India have lately been inflated to 


a very great extent, by public and other loans, and 
by a huge system of credit. Without borrowing, 
our trade to India cannot be further increased 
to any large extent, or, what is much the same 
thing, India cannot pay us for a large and in- 
creasing supply of our exports. If we are to 
keep our Indian trade, even as it is, we must 
make very large and sweeping alterations in our 
Indian financial policy. As regards the Indian 
import duty on cottons, I think it ought to be 
repealed without delay. It is not a benefit to 
the natives of India, and it is certainly an injury 
to the cotton trade of Manchester. 

In the importation of raw wool, we have the 
same result as in the importation of raw cotton : 
namely, importation increasing in quantity and 
diminishing in value. Of raw wool of all kinds 
there were imported in 1864, 206 million Ibs., 
valued at 15 millions sterling ; and in 1878, 
400 million Ibs., valued at nearly 23| millions 
sterling. Thus, within 14 years, the quantity of 
raw wool imported has been doubled, and the 
value has been increased by a half. The increase 
in the importation of Berlin wool and yarn used 
for fancy purposes is even more remarkable. 
During the same period, it has been increased 
nearly sixfold in quantity, and slightly more 
than fourfold in value. Still further, the 
quantity of woollen yarn imported for weaving has 
been increased from nearly 4 million Ibs., valued 
at 1,000,000 in 1864, up to close on 11 J million 
Ibs., valued at nearly 1^ millions sterling in 1878, 
and exceeded 13,000,000 Ibs. in 1873 and 1874. 
Thus, the imported woollen yarns for weaving 


have been more than doubled in quantity, and only 
been increased one-half in value. 

How stands the export trade of woollens? 
Here the first thing to be noticed is that, of 
late, both in quantity and value, there is a 
diminishing export trade in raw wool. Of 
sheeps' and lambs' wool there were exported in 
1864, 7i million Ibs., valued at 673,000 ; and 
in 1878,. fully 6J million Ibs, valued at 548,000. 
A partial explanation of this phenomenon is that 
the direct trade between some of our wool-grow- 
ing colonies and some foreign countries is on the 
increase. On the other hand, the quantity of 
woollen and worsted yarn was substantially the 
same in 1878 as in 1864, and the value had con- 
siderably fallen in 1878 as compared with 1864. 
For 1864, the exported woollen and worsted 
yarns amounted almost to 31,000,000 Ibs., valued 
nearly at 5 millions sterling ; and for 1878, fully 
31,000,000 Ibs., valued almost at 4 millions ster- 
ling. Hence the difference in value in 1864 and 
1878 was 1 millions sterling, for a larger quan- 
tity in the former year than the latter. The fall 
in value is partly to be explained by the low price 
of the raw material, and the loss must have fallen 
partly on the home and partly on the foreign 
graziers. The greatest quantity of exported 
woollen and worsted yarns took place in 1871, 
when it was 43| million Ibs., and a falling export 
trade continued till 1878, when a rise of 
4,000,000 Ibs., and a proportional rise in price 
took place. 

The exported woollen and worsted manu- 
factures are distinguished as cloths, coatings, 


&c., unmixed and mixed ; 2d, flannels, blan- 
kets, blanketing, and baizes ; 3d, worsted 
stuffs, unmixed and mixed ; and 4th, carpets 
and druggets. Of the first class there were 
exported in 1864 fully 29^ million yards, 
valued at 4 millions sterling, and in 1878, 
43 million yards, valued at 6^ millions ster- 
ling. Here the state of our export trade 
appears to be in a satisfactory condition ; for the 
exports are increasing in quantity, and the 
values are also proportionally increasing. In 
the second class, the exports have fallen off 
by one-sixth in 1878 as compared with 1864, 
and the values have fallen in a greater ratio. 
These facts, being continuous, indicate a fall- 
ing trade ; and their explanation seems to be 
that some of our old customers are supplying 
themselves, or are being supplied by a nearer or 
cheaper market. We cannot hope to have a 
monopoly of the trade of the world in everything. 
The number of yards of the second class ex- 
ported was, in 1864, 18,000,000 yards, valued 
at 1 millions sterling ; and, in 1878, 15 million 
yards, valued at 1 million sterling. The third 
class, when compared in 1864 and 1878, gives us 
an article increasing in quantity and diminishing 
in value, and showing considerable oscillations. 
Of the third class, worsted stuffs, there were ex- 
ported, in 1864, 187J million yards, valued at 
lOf millions sterling ; and, in 1878, 192 million 
yards, valued at nearly 7 millions sterling. The 
quantity steadily rose till 1872, when it reached 
the enormous quantity of 345,000,000 yards, and 
has as steadily declined till it reached, in 1878, 


almost the sanw point as it started from in 1864. 
The effect has been disji>tn>us to all engaged in 
this branch of industry, and we have had the 
usual concomitants in the falling away of what 
was once a highly flourishing and lucrative 
trade, namely, over-production, diminished pro- 
fits, and lowered wages. Up to 1872, thN 
branch of trade must have been highly profit- 
able to all concerned ; but since then it has 
been most unprofitable. In 1872, the quan- 
tity exported was double what it was in 
1864, and the value was proportionally high. 
From the former date, the quantity has been 
continually falling, and the value even in a 
greater ratio. This is exactly what we might 
expect. Large profits urge people to invest 
their capital in highly remunerative concerns ; 
the new investments augment productive power; 
over-production follows ; and diminished profits 
and lowered wages follow as certainly as the 
night follows the day. The lucky are those who 
get the start in the race, and the unlucky those 
who think they can win at a canter when the 
race is well nigh finished. 

The fourth class of woollen goods compre- 
hends carpets and druggets. In 1864, of this 
sort there were exported 6,000,000 yards, valued 
at 870,000 ; and, in 1878, fully 6 million 
yards, valued at 20,000 less. Here the 
highest point w^as reached in 1872, when the 
quantity was nearly 12,000,000 yards, and since 
then the fall has been steady ; but, on the other 
hand, the price has, roughly speaking, been pro- 
portional to the variation either way, whether in 


decrease or increase. Besides those four classes 
of woollen goods, we exported other sorts of 
woollen goods to the value of almost 1,000,000 
in 1864, and here the rise in value has been as 
much as one-third during the last fourteen years. 

The grand total values of our exported woollen 
and worsted manufactures, which, next to cotton, 
is the highest in value of any of our industries, 
were For 1864, 18 millions sterling ; for 
1869, 21J millions sterling ; for 1874, nearly 
23 millions sterling ; and for 1878, 16| millions 

I now wish to direct your attention to the 
linen industry. First, let us see what the 
imports are ; and, secondly, what the exports. 

In 1864, fully If million cwts. of flax and 
tow, valued at fully 5 \ millions sterling, were 
imported ; and, in 1878, slightly more than 1 \ 
million cwts., valued at 3 millions sterling. Of 
hemp there were imported, in 1864, 1,000,000, 
valued at If million sterling ; and, in 1878, 1^ 
million cwts., valued at fully If millions sterling. 
Thus, both flax and hemp were somewhat 
cheaper in 1878 than in 1864. I turn aside to 
the exported linen goods. Here there is an 
unmistakeable decrease in quantity and value. 
In 1864, there were exported of linen yarn 
40,000,000 Ibs., valued at 3,000,000 ; and in 
1878, 18^ million Ibs., valued at 1^ millions ster- 
ling. Roughly, while the diminution in quantity 
is undeniable, the ratios throughout between 
the values are nearly proportional. Further, the 
total yards of piece goods exported were, in 1864, 
2104 millions, and, in 1878, 161 millions. Thus, 


there is a large diminution in the quantity of 
exported linen goods since 1864. The total 
number of Ibs. exported of thread* for sewing was, 
for those years, respectively 4 millions and fully 
2 1 millions. As a grand total in value, we have, 
for those years, 8 millions sterling and 5 millions 
sterling. Here I have not the means of institut- 
ing a minute comparison between the fall in 
quantity and value ; but, comparing 1864 and 
1878, I think I am not far from the mark in 
saying that the fall in both is nearly propor- 
tional, and that the reason of the fall does not 
arise from excessive competition cutting down 
prices, nor a glutted market inducing manufac- 
turers to export at a loss, but is to be explained 
by the assumption that another article has been 
substituted for many purposes for which linen 
was formerly used, and also partially from 
foreign competition. The article substituted is, 
I believe, cotton, and, indirectly perhaps, also in 
some degree, jute. This brings me to the con- 
sideration of our great staple trade. 

How stands our trade in the import of raw 
jute, and the export of jute-manufactured goods ? 

Of raw jute there were imported in 1864 
above 2 million cwts., valued at close on 2 
millions sterling ; and, in 1878, 4| million cwts., 
valued at close on 2 millions sterling. Roughly, 
therefore, the quantity of jute imported has been 
doubled, and the price has fallen nearly a half 
within the last 14 years. The diminished value 
and the increased quantity of imported jute 
have, as I have already indicated, a most im- 
portant bearing in arriving at an exact know- 


ledge of our export and import trade. One 
effect of this state of affairs is that we, in this 
country, can sell a larger quantity of goods for a 
smaller price. What about the exports ? 

In 1864, there were exported of jute yarns 
5 million Ibs., valued at 111,503 ; in 1869, 
8 million Ibs., valued at 126,691 ; in 1874, 
15| million Ibs., valued at 245,784; and, in 1878, 
12^ million Ibs., valued at 181,076. Hence, 
the jute yarns exported were more than doubled 
in quantity, and only somewhat more than in- 
creased by a half in value in 1878 as compared 
with 1864 Thus we have an unmistakeably 
increasing demand for jute yarns at a reduced 
price, and pre-eminently is this the case between 
1874 and 1878, or at a time coincident with 
diminished profits and low wages in this town 
and neighbourhood. The raw material being 
cheap in those years, the loss to us is not so 
great as the Parliamentary Returns would, per- 
haps, appear, at first sight, to suggest. How far 
the diminished value is consistent with a healthy 
trade is not within my province to determine. 
On this subject, anything I could say would be 
wide of the mark, and, therefore, I leave it to the 
decision of those who are able to weigh all the 
facts. But, with your leave, I would ask your 
permission to point out that an increased export 
trade in yarns is not such an advantageous trade 
to the town as an increased trade in manu- 
factured goods ; because, in the former case, 
our workpeople, manufacturers, and merchants 
enjoy a smaller share of profits and wages than 
in the latter. It is better for us to sell jute 


yarns than raw jute, mid still better to sell the 
fully made article than the yarns of which it i- 
composed. (Jencrally, it is belter for a manu- 
facturing country to sell the article partially 
finished than the raw material, and the finished 
article than the partially finished. Let us see, 
then, how we stand as regards our fully manu- 
factured jute goods. 

Here the increase N something astounding. 
In 1864, there were exported of jute manu- 
factures 14 million yards, valued at 356,764 ; 
in 1869, fully 50 million yards, valued at 
742,801 ; in 1874, nearly 113 million yards. 
valued at 1,679,266 ; and, in 1878, 123 million 
yards, valued at 1,588,901. Thus, in fourteen 
years, the jute manufactures have increased ten- 
fold in quantity, and fully fourfold in value. 

Have we a flourishing trade in jute goods ? 
No one, who knows anything about your affairs, 
can, for a moment, doubt that you, above all those 
who have engaged in the jute trade, have been 
exceedingly prosperous. The question comes to 
be, Will your prosperity continue ? For a time, 
you had a monopoly of the jute trade. You 
have this no longer. For a long period, you 
reaped great profits, and received high wages ; 
but those profits and wages have attracted other 
and no less energetic competitors than yourselves 
into the field. Coincident with the hey-day of 
prosperity of the jute trade, as disclosed by the 
Parliamentary Returns for the United Kingdom, 
many, in this town, accumulated large fortunes ; 
but the monopoly being gone, such instances of 
good luck are not to be expected. What is the 


result, and what is to be done to maintain your 
hold on the trade ? Do as you have done before. 
Improve your machinery, encourage inventive 
skill. Work all together harmoniously, both 
employers and employed, as persons engaged 
in a common undertaking. Trade disputes will 
cause you to lose the trade as certainly as it 
has, in several instances, driven away long- 
established and lucrative industries from other 
places. Want of strict attention to business 
will ruin the merchants and manufacturers ; 
and too great inclination to rest on your oars 
and to be content with your past achievements, 
will end in your having empty machine shops, 
silent spinning jennies, useless weaving looms, 
deserted streets, empty docks, and ruin 
and destitution staring you in the face. My 
friends, let me urge upon you, when differ- 
ences arise, to act in a friendly and amicable 
spirit towards each other. Workmen, remember 
that capital is essential to industrial prosperity ; 
and capitalists, remember that a steady, indus- 
trious, intelligent body of workers is of the 
utmost value in maintaining your position. To 
me it was most gratifying to learn, the other day, 
that, in consequence of the improved state of the 
local staple trade, the wages had been voluntarily 
| raised ; and, if business continued to be favour- 
able, was again to be shortly raised. 

The silk trade, although far from being in a 
flourishing condition, still gives work to a good 
many people; and the importation of silk, both raw 
and manufactured, forms a very important item 
in our national accounts. The quantity of raw 



silk imported in 1864 was 5 million Ibs., valued 
at 6J millions sterling ; and in 1878 was only 
slightly more than 4,000,000 Ibs!, valued at fully 
3 millions sterling. Thus, the importation of 
raw silk, in quantity and value, has largely dimi- 
nished. The regularity of the fall, during the 
last fourteen years, clearly leads to the inference 
that the silk manufactures are in a decaying 
state. On the other hand, the importation of 
manufactured silk has gone on increasing con- 
temporaneously with the decline of raw silk 
imported, and is rapidly increasing. These facts 
are exactly what, considering the great wealth of 
the country, might have been expected. In 1864, 
the imported silk broad stuffs were valued at 
4 millions sterling ; and in 1878, close on 7f 
millions sterling. Of ribbons, in 1864, the 
value was close on 2 millions sterling ; and, in 
1878, 2.J millions sterling ; and other silk 
manufactures, close on 1J millions sterling in 
1864, and 2 millions in 1878. 

I turn to the other side of the account, namely, 
our export trade in manufactured silk. Of broad 
piece goods the quantity exported, in 1864, was 
2|- million yards, valued at half a million sterling ; 
and, in 1878, close on 5 million yards, valued 
at fully three-quarters of a million sterling. Of 
other kinds, the values alone are given in the 
Statistical Abstract, and, for the years I have taken 
for comparison, they were close upon 1 million 
sterling, and fully 1 million sterling. The total 
silk exports amounted, in 1864, to fully 2 millions 
sterling ; and, in 1878, to 2 millions sterling ; 
and the price of broad piece goods 


out of all proportion to any improvements 
introduced into the manufacture, lower. Of 
course, we ought to recollect that the value of 
the raw material had fallen in 1878 as com- 
pared with 1864. 

What is the conclusion which we ought to draw 
as to our chief textile industries ? Justly, as I 
think, we have a right to say that we have undis- 
puted supremacy in the aggregate extent of the 
textile industries. Our potential power consider- 
ably exceeds that of all our competitors combined. 
We have lost nothing in our former excellence 
of workmanship, quality, colour, or finish, and 
we have no present indication that our textile 
fabrics will be vanquished by foreign compe- 
tition. We have, in a word, all the essential 
elements for ascendency in this department of 
industrial pursuits. We have cheap capital ; 
we have a rich inheritance in the administrative 
faculties of our great commercial leaders ; we 
are endowed with great enterprise in the manage- 
ment of immense commercial undertakings ; and, 
lastly, we possess high and many excellent 
qualities in the workmanlike capacity of our 
operatives. Here we have nothing to fear in a 
fair and honest competition with any country in 
the world. All we need is a fair field, and no 

I now ask your attention to another branch 
of our trade, namely, in minerals. 

1st, Asto iron. For iron in bars, the value of the 
imports, in 1864, was nearly the same as in 1869 ; 
and a slightly increased quantity imported was, 
in 1874, valued at close on double the values of 


1809, and a fourth Ijirirrr quantity was valued, 
in 1878, at the same amount as the total quantity 
imported in 1874. The quantity of iron and steel 
wrought or manufactured imported, during the 
last fourteen years, is well worthy of your atten- 
tion. It appears that the quantity and value 
were much the same in 1864 and 1869 ; were 
treble in 1874 what they were in 1864 ; and 
sixfold in quantity and fourfold in value in 1878 
what they were in Ib64. 

The export trade in iron and steel has also, 
during the last fourteenyears,been subject to gi cat 
oscillations. The climax was reached in 1872, 
when the direction became steadily downward. 
Pig iron stands highest in the class of iron and 
steel, railroad-iron follows, bar-iron succeeds, and 
then come hoops, &c. It also appears that the total 
tons of iron and steel imported in 1 864 were 1 
millions, valued at 15 millions sterling ; in 1869, 
were fully 2 millions, valued at 22 millions 
sterling ; in 1874, were nearly 2 millions, valued at 
31 millions sterling; and, in 1878, were 2millinns. 
valued at 1 9 millions sterling. Those data afford 
much food for reflection. The first epoch 
between 1864 and 1869 was one of satisfactory 
and progressive trade ; the second between 
1869 and 1874 of wild and reckless specula- 
tion ; and the third between 1874 and 1878 
was the natural rebound. 

It is, gentlemen, to the consideration of facts 
such as these that you must give your attention. 
No fixed price can be predicated for any commo- 
dity ; and, therefore, there is no fixed ratio of 
profits or of wages. As a rule, people go 


where they can get the best article at the 
lowest price ; and, if we cannot satisfy these 
conditions, some other nation will get our cus- 

Let me here submit to your consideration 
some facts as to the trade closely related to the 
iron manufactures of this country. Thus, both 
in number and value, our exports of railway 
carriages have been on the decrease since 1864. 
Again, the value of exported implements and 
tools of husbandry since 1864 indicate a very 
slowly increasing trade, and is probably retarded 
by the industrial activity of the United States in 
the manufacture and export of this class of goods. 
On the other hand, our export of machinery has 
been on the increase during the last 14 years. 
Indeed, the value of exported machinery has 
nearly doubled since 1864, and had actually been 
doubled in 1873-74 and 75 ; that is to say, 
after the years of highest inflation in our recent 
days of prosperity. The downward tendency 
was unmistakeable in 1874, and has continued 
ever since. 

Arms and ammunition were exported to the 
value of 1 million sterling in 1864 ; and very 
nearly 1 million sterling in 1878. The highest 
points were reached in 1870 and 1875, when the 
values were 2 millions sterling ; and, in 1871, 
when they approached 2 millions sterling. 
You will, at once, observe, I hope, that, in this 
class of goods, the exports were highest in time of 
war 1870 and 1871 coinciding with the French 
and German war, and 1874 and 1875 coincid- 
ing with the preparations for the Turkish- 


Russian war. A primary law of political 
economy, namely, supply follows the demand, 
finally determines the direction of human energy. 
The subsequent stages are easily indicated : 
Increased supply follows ; thence follows over- 
production ; then reaction, with diminished 
profits, and low wages. The only other cl:t I 
can here notice consists of hardware and cutlery, 
which have fallen since 1872, when the value was 
5 millions sterling. Hardware and cutlery, I may 
observe in passing, sprung up into a great trade 
in Birmingham and Sheffield by the invention of 
the puddling furnace by Cost in 1783. 

Our export of coal has been keenly sensitive 
to all the progressive and retrograde movements 
of our commerce for the last fourteen years. In 
1864, there were exported of coal, fuel, and 
cinders, nearly 9 million tons, valued at 4 
millions sterling ; in 1869, lOf million tons, 
valued at fully 5 millions sterling ; in 1874, 
close on 14 million tons, valued at 12 millions 
sterling ; and, in 1878, 15^ million tons, 
valued at 7| millions sterling. Thus, the 
export values in 1864 and 1869 were prac- 
tically the same for the same quantities, 
and the value in 1874 was nearly double 
what it was last year. With the excep- 
tion of the year 1873, when there was a fall in 
the exported quantity of half a million tons as 
compared with the previous year, the increase of 
exported coal was progressive ; but the largest 
quantity was exported in 1876, when it was 16 
million tons, and was sent abroad in a falling 
market. The highest value was reached in 1873, 


and since then the value has been falling, and 
the quantity, except in 1877, increasing every 
year. Further, the state of the coal trade is 
even still worse than our exports would appear 
to make it ; because coal enters into all home in- 
dustries, which were slack and unremunerative 
during the last period. Nay more, steel rails, 
manufactured by a new process, were substituted 
for iron rails, and greatly depressed the demand 
for coal at home. Previously, every ton of iron 
rails required 3 or 4 tons of coal, but this new 
process requires little or no coal at all. 

An old adage affirms that there is nothing 
like leather. Whatever the truth contained in 
this saying, most assuredly our import and 
export trade in this article has been largely 
developed. Of hides, there were imported, in 
1878, fully 1 J million cwts., valued at 6 millions 
sterling ; and of sheep and lamb, seal and goat 
skins, there were imported, in the same year, 
nearly 20 millions, valued at 2 millions sterling. 
Our exports of leather, including boots and shoes, 
saddlery and harness, amounted, in 1878, to 
fully 3 millions sterling in value. 

Our foreign trade in wood and timber almost 
entirely consists of imports, which, in 1864 and 
1869, amounted to about 13 millions sterling ; in 
1874 to 22 millions sterling ; and in 1878 to 14 
millions sterling. Most of the wood imported 
is needed for home consumption. Our export 
trade in furniture is small. 

The miscellaneous exports have been more 
than doubled between 1864 and 1878, and last 
year were 1 6 millions sterling in value. The mis- 


cellaneous imports have also been fully doubled 
within the same period, and mi died 39 millions 
sterling in 1878. 

To give you some idea of our -lupendous 
foreign trade, and its recent increase, I must now 
trouble you with some more figures. In 1864, the 
total imports from foreign countries and British 
possessions were valued at 275 millions sterling ; 
and, in 1878, at 368f millions sterling ; and the 
total exports to foreign countries and Brit Mi 
possessions, in 1864, were valued at 212$ millions 
sterling, and, in 1878, at 245$ millions sterling. 
During the last fourteen years, the total imports 
were highest in 1877, when they reached the 
grand total of 395$ millions sterling ; and the 
exports reached their highest point in 1872, 
when they amounted to fully 314$ millions 
sterling, and the latter have since fallen on an 
average of 10 millions sterling a-year. The great 
excess of our imports over our exports has 
caused great alarm in the minds of some. For 
such alarm there is no good foundation. The 
exports give no assurance of the satisfactory 
condition of a country, and may be a strong 
evidence of its decay. On the other hand, the 
imports afford the best proof of the growing 
wealth and resources of a country in the same 
way, and for the same reasons, as I or you or 
any one is rich in proportion to what we receive, 
and not in proportion to what we are obliged to 

The causes of this excess of imports over 
exports deserve more than a passing notice, but 
I have not time to discuss them at length. All 


I can say is, that one of the main causes is that 
large payments have to be made to this country 
by foreigners and British colonists as interest and 
in repayment of the debs due by them to us. 

With regard to the enormous development of 
our trade in 1871 and 1872, I have to observe 
that it arose from a wild and over-speculative 
spirit which spread, with great rapidity, over 
the Continent and in America. Companies were 
formed in Austria and Germany for all sorts of 
business, and ended in tremendous losses. Rail- 
ways were extended in the United States beyond 
what prudence dictated, prices in coal and iron 
rose to a great height, a wild paroxysm of 
gambling took the place of legitimate business, 
a reaction was bound to come, and came with 
a vengeance. Much, not all, of our seeming 
prosperity was deceptive and ruinous, because 
it was built up on a system of credit which had 
no substantial foundation. This system of trad- 
ing on credit is more than ever to be guarded 
against. Between 1866 and 1875, 30,000 miles 
of railway were constructed in the United States, 
and largely by British capital. The collapse 
came in 1873, and we suddenly woke up to 
the fact that we were constructing unproductive 
railways out of our own pockets for the im- 
mediate advantage of a gang of reckless specula- 
tors, and only for the advantage of our American 
cousins and ourselves at some indefinitely dis- 
tant period ! The Governments of Turkey and 
Egypt have taught us the same lesson. Both 
spent our capital in a most reckless fashion, and 
the unfortunate creditors, as well as debtors, 


suffer the consequences of excessive prodi- 

Gentlemen, the prime cause of the last sus 
pension of our industry, and the temporal*] 
exhaustion of our resources, was the reckless 
misapplication of labour and capital, involving 
inflation of prices, over production, unwholesom< 
and fictitious trade, and fraudulent speculation 
The recent depression in trade was not caused by 
the late war between Russia and Turkey, and was 
not to any great extent increased by it. Our 
commerce is as wide as the world, and the depres- 
sion has been general, not local. It is chiefly to 
be explained by the deplorable commercial and 
agricultural condition of our own and all foreign 
countries. For years previous to the present | 
lull in trade, our commerce was carried on to a 
large extent by means of a gigantic system of] 
credit. When this system came to an end, our 
fabulous trade began to shrink. We made the 
world our debtors by our loans, received a portion 
of the capital in the form of high interest, lost 
the balance through gamblers on the stock ex- 
change, and by swindling dealers in foreign trade, 
and thought, for a while, that we were becoming 
amazingly rich. The failures of 1875 and 1878 
prove what I am now asserting. 

After all, when the quantities and values of ' 
our export trade are duly weighed, there is no 
evidence of our having lost any great or lucrative 
trade we once enjoyed. What are the facts ? 
Our goods have not been driven out of any im- 
portant market in any appreciable degree, and no 
other country can yet successfully compete with 


us in those articles which form the staple industries 
of our people. Bearing in mind the protective 
and even prohibitory tariffs of Continental coun- 
tries, of the United States, of the Canadian domin- 
ions, and of some parts of Australia, we have good 
cause to be proud of our industrial achievements. 
Those high tariffs abroad will yet have to be re- 
pealed, as the high tariffs had to be repealed in 
this country ; but they will not be so until greater 
enlightenment exists amongst statesmen and 
peoples as to the grand truths of economic science. 
Between all nations, exchange should be as com- 
plete as between different counties in the United 
Kingdom. Necessary taxation should be raised 
internally from the subjects of a country, according 
to their respective incomes and means of living. 

We are advised by a certain class of poli- 
ticians to have nothing to do with Continental 
disputes, and devote our whole energies to home 
affairs. When we adopt this craven-hearted 
policy, the greatness commercial and political 
of our country will not be of long duration. 
Wherever we carry on trade, there we must have 
influence ; and as with individuals, so with nations, 
our commerce will be most successfully conducted 
where our power is greatest and our reputation 
for greatness is beyond dispute. Truthfulness, 
honesty, and fair dealing must be at the basis of 
commercial success ; but we cannot safely trust 
to these qualities alone. Let our prestige be once 
lost, and we would soon be driven from all our 
commercial stations and nearly all of our colo- 
nies and dependencies, and our trade would 
be ruined. 


What shall we say as to our external trade 
with the British possessions ? Undoubtedly, that 
there, at least, we have a great field for our 
capital, industry, and enterprise. In 1878, 
the imports from the British possessions 
amounted to nearly 78 millions sterling, and 
the exports to them to 72 millions sterling. 
With one single and important exception, 
all the British possessions evince an increas- 
ing ability to take our goods and a will- 
ingness to pay for them. That exception is 
British India. In 1864, the value of the imports 
from India amounted to 52J millions sterling, 
and the exports to 20f millions sterling ; and 
both the exports and imports steadily fell until last 
year, when the imports were 27 millions sterling, 
and the exports 24 millions sterling. Though 
falling now and again, the exports to India have 
been comparatively steady. 

Whatever may be the ultimate effects of pro- 
tection upon our trade with foreign countries, and 
whatever the backsliding tendencies of some of 
our own colonies, we have, I believe, good reason 
for saying that our trade with the British pos- 
sessions is in a satisfactory condition, is advancing 
with rapid strides, and will still further advance 
with greater rapidity in the future. Let us, by all 
means, give free scope to our commercial relations 
with every part of the British Empire. By 
acting on this principle, we will increase the happi- 
ness and prosperity of every portion of Her 
Majesty's widespread dominions, and secure for 
ourselves the most enduring and most lucrative 
sources of our commercial greatness. With India 



and the Colonies as our allies and customers, we 
are strong in all that forms a great country and a 
powerful state in all that contributes to the 
greatness and power of a mighty empire. 

Under existing circumstances, what ought to 
be our fiscal policy ? Freedom of trade has at- 
tracted to our shores the wealth, the comforts, 
and the luxuries of the world. Indeed, all experi- 
ence has taught us that the freer trade is, the 
larger and more profitable it is ; and the more 
restricted, the smaller and less profitable it is. 
Restriction, sprung from the time of the Common- 
wealth, when the Navigation Act was passed, and 
when heavy import duties were imposed to en- 
force self-reliance and home production, has been 
fostered by many subsequent adventitious circum- 
stances at home and political events abroad, and 
has merely crippled industry and our mercantile 
marine ! Subsequent restrictions were imposed in 
France and England in the 17th and 18th cen- 
turies ; and, while a favourable balance in gold and 
silver, under the mercantile system, was aimed at, 
a diminished trade, in the real wealth of the nation, 
was the result. The aggressive wars of the 18th and 
19th centuries have led, by an absolute necessity, 
to the adoption of heavy import duties by most 
of the nations on the Continent, and left them 
poorer than ever. We, on the other hand, have now 
adopted a free trade policy in recent times, and have 
gone on removing obnoxious import duties of all 
kinds until there are only a very few articles upon 
which any import duties are imposed, and these 
almost exclusively as countervailing duties to those 
payable under our own Excise. 


Free trade, although adopted by Huskisson, 
was really inaugurated by Sir Robert Peel in 
1846, and has largely contributed -to our commer- 
cial supremacy. Peel was of opinion that the best 
way to compete with hostile tariffs was to en- 
courage free imports. We have, for some time past, 
acted on this principle, and \ve have surpassed all 
our greatest epochs of former prosperity. I then - 
fore submit that our general policy should be 
(1) to cultivate imports and leave exports to cul- 
tivate themselves ; and (2) to regard the benefit 
of the consumer as the paramount object to be 
attained in our commercial policy. 

As you must have already perceived, I have 
intentionally omitted to lay before you any details 
as to our home trade. Our trade at home far 
exceeds our foreign commerce. Thus, the food 
we import is almost exclusively for the home 
trade, and amounts to about 150 millions sterling 
a-year in value, and exceeds the value of the food 
imported in 1840 by no less a sum than 100 mil- 
lions sterling. Again, the imports of raw cotton 
and wool, the British produce in agricultural com- 
modities, and the coal and metals produced in 
the United Kingdom, are largely consumed at 
home. These products are of very great yearly 
value. All figures are difficult to understand 
when millions of pounds, or cwts., or tons, are 
involved. I won't try to give you any notion of 
our trade for home consumption in this fashion. 
The best idea I can suggest to you of this part of 
our subject is to ask you to remember that our 
home trade deals with all that is necessary to 
feed, clothe, and lodge 34 millions of people ; to 


supply most of them with the comforts of life, 
and to bestow its luxuries on a larger number 
of persons than in any previous time in our 

To aid us in doing this, we have enormously 
developed our resources by two things, amongst 
many more, namely : first, the supremacy we have 
attained in the bulk of the carrying trade of the 
world ; and, secondly, the vast railway system which 
has been developed in all parts of the country. 
The British shipping is equal to the combined 
mercantile marine of the world ; and our steam 
vessels have given us a greater pre-eminence in 
the carrying trade than ever. Success in this 
branch of industry is a sure indication of high 
personal qualities of mind and body in our people. 
Our sailors are brave, daring, and skilful ; have 
carried our commerce through many and serious 
difficulties ; and have maintained the honour of 
the British flag in all parts of the world. 

Without our railways, we could not carry on 
our present traffic. Railways were originated in this 
country, and have been largely developed through- 
out the world by the British people. They are 
the great overland highways of nations ; and, in 
some countries, form part of the national public 
property. In 1878, there were 17,335 miles of 
railway opened in the United Kingdom ; and of 
these England had 12,230, Scotland 2,845, and 
Ireland 2,260 miles. The total paid-up capital in 
1878 was 700 millions sterling, and, therefore, 
closely approached the total amount of our 
national debt. 

I must bring this long address to a close, and 


a few practical observations are all I now intend 
to make. 

To advance the technical education of the 
people is a high national duty, which cannot be 
neglected without great loss of time, capital, and 

To secure freedom to all, whether capitalists 
or workmen, to pursue their own interests, is es- 
sential to all material progress and social well- 
being. Let us, in the words of Adam Smith, 
support, with all our might, the unrestricted free- 
dom of labour and the unrestricted exchange of 

The Government should also be urged to take 
a more energetic and practical interest in the 
industry, commerce, and agriculture of the country 
than it has ever done. Information, not interfer- 
ence, is all that is required. 

We have at? last reached, I believe, the lowest 
point of the present deplorable and long- 
continued depression in trade, and, let us 
hope, in agriculture as well. Still, Gentle- 
men, let us remember that material prosperity 
is nothing more than the means to an end. To 
attain the highest possible human improvement, 
physically, morally, and intellectually, ought ever 
to be the goal of all our endeavours after per- 
fection. We are rich in stored-up capital, and in 
the qualities of mind and body of our people. 
Let us take care that we do not injure them. Let 
us do all we can to improve them. 

Let us also learn wisdom by the experience 
of the past, and invest our immense yearly savings 
immense even now nearer home than we have 


lately been in the habit of doing, and in the 
development of our own soil, and in that of our 
colonies and dependencies, and in works of a 
national character. We have, I think, much need 
to be on our guard against the seductions of large 
and speculative adventures. A moderate and 
sound trade is better than a doubtful and specu- 
lative business. 

Gentlemen, if we are only true to ourselves, 

\ if we would only remember that idleness produces 
j poverty and weakness, and industry brings wealth 

< and power, we have nothing to fear as to our 
future commercial or agricultural condition, or the 
future happiness, welfare, and prosperity of the 
^British people. 






( n NT E N T v 

Colonization by Greece and Rome Early modern colonization 
Advantages of colonies Modern colonization first conducted by 
monopolist companies. From their beginning, the English 
had all the elements of a great future Modern policy aimed at an 
exclusive colonial trade English colonies had many signal advantages 
Modern colonies became Asylums from political and religious per- 
secutions General outline of Address First group : Canadian domi- 
nions Early history, area, population, and encouragement to 
agricultural colonists French Canadians Trade Frequent bank- 
ruptcies Shipping and railways Pacific Railway scheme Russia in 
the Pacific Constitution, revenue, and expenditure Forces and 
loyalty of dominion. Second group : African Present war not to be 
discussed Dangers arising from masses of savages on borders The 
Zulus and their chiefs African sources of wealth Need of immi- 
grants Splendid future Cape and Natal colonies As to African 
colonies three questions arise : Peace, burden of present war, and con- 
federation. Third group, Australian : Large British investments in 
Australian colonies Area, population, trade, and constitution, &c., of 
New South Wales, Victoria, Queensland, South Australia, Western 
Australia, New Zealand, and Tasmania As to Australian colonies 
three questions arise : Commercial policy, defence, and confederation. 
Fourth group : West Indian colonies and minor dependencies (1.) 
West India colonies Climate Trade Cooley emigration Sources 
of sugar supplies (2.) Ceylon : Area and population Trade 
Mercantile system predominates Constitution (3.) Hong Kong: 
Area, population, trade, and constitution General considerations as 
to the whole of our Colonial empire are immigration, commercial 
policy, defence, and confederation Conclusion. 





Colonization has been attempted 
by all energetic nations, and has been forced 
upon the less active as a dire necessity. 

The Greeks were great colonizers, and spread 
their name and race in the Levant and the 
Mediterranean, in Africa and India, in Italy 
and Sicily. Syracuse and Agrigentum in Sicily, 
Ephesus and Miletus in Asia Minor, were Greek 
colonies, and in all of them philosophy and 
poetry, eloquence and the fine arts, were estab- 
lished and cultivated to the highest degree. The 
Romans also founded colonies in many regions 
of continental Europe, and laid the foundations 
of modern free institutions in France and Spain, 
Germany and Britain. The Roman colonies had 
not such a brilliant career as the Greek ; but 
some of them, for example, Florence, attained 
great power and refinement. 

The Greek colonies were entirely independ- 


ent of the parent state ; the Roman colonies 
were held in strict subjection to the Imperial city. 
The former usually enjoyed the favour and 
assistance of the cities from which they sprung, 
but were under no obligation to obey the com- 
mands of the parent state. They, in fact, settled 
the Government, enacted laws, elected magis- 
trates, and made peace or war as independent 
nations. The latter were invariably the pos- 
sessors or occupiers of the territory conquered 
by the Imperial army. They could enact bye- 
laws for their government, and were not inde- 
pendent of Rome, but dependent upon it, and 
were subject to its jurisdiction and authority. 

After the destruction of the Roman empire, 
Europe was over-run by the fierce and lawless 
hordes who settled down on the plains and along 
the shores of what formerly had been the terri- 
tories of the Roman empire. The luxury, vice, 
and corruption of the Romans gave way to the 
hardihood, bravery, and energy of the modern 
rulers of Europe. At last, peace and order arose 
out of the war and disorder of the dark ages ; 
and civilization and refinement began to advance 
at a rapid pace. 

Venice became the centre of a great and in- 
creasing commerce with all parts of the known 
world. The great profits she enjoyed in her 
overland trade with Hindostan tempted the 
cupidity of the Portuguese, who, in the fifteenth 
century, undertook several perilous voyages by 
sea, and were rewarded by discovering Madeira, 
Guinea, and the Cape of Good Hope. At the 
Cape, the Dutch made a settlement, because it 


afforded them a convenient place halfway lx -t \\ < < -i 
Europe and their East Indian possessions, an< 
at which ships might call in going and rclin nin; 
from the East. Subsequently, in 1497, Vai 
de Gamo sailed from Lisbon in search of 
oceanic highway to the East; and, ai't< T 
voyage of eleven months, arrived on the coasl 
of Hindostan. Previous to this voyage, in 
1492, Columbus, a native of Genoa, thoroughly] 
believing in the existence of a western oceanic, 
highway from Europe to Hindostan, induced! 
Isabella of Spain to help him to undertake an 
expedition to the East. After an absence of 
two or three months, he discovered Behama or 
the Lucyan Islands and St Domingo. Under 
the belief that he had arrived at the banks of 
the Ganges, he called the newly-discovered terri- 
tory by the name of India, and his mistake had 
afterwards to be rectified by designating those 
islands on the coast of America as the West 
Indies. He subsequently arrived at Terra Firina 
and the Isthmus of Darien. 

Thus, a project for reaching the East Indies 
by sea led to the discovery of America and the 
West Indies. Filled with insatiable thirst for 
gold, the Spaniards neglected the cultivation of 
the soil and the pursuits of useful industry, and 
perpetrated the most abominable cruelties on 
the natives of Mexico and Peru. The thirst 
for gold has played an important part in all 
European colonization, and led to an appropria- 
tion of our own Australian colonies ; but the 
pursuits of agriculture and manufactures have 
always been ultimately found to confer tin- 


greatest rewards, and the most enduring bless- 
ings. Gold is only one form of wealth, and by 
no means the most valuable. The acquisition 
of waste or sparsely occupied fertile territory 
rapidly increases the wealth and greatness of the 
colonists of a civilised people ; because, although 
labourers are not easily obtained, no rent has to 
be paid to a landlord, and the taxes payable to 
the State are necessarily low. 

The discovery of America by Columbus, and 
of the Cape route to the East Indies by Vasco 
de Gamo, have very materially influenced the 
subsequent history of Europe. Two worlds were 
opened up to European industry; and their pro- 
ducts and manufactures have been exchanged in 
Europe with great and increasing advantage 
to all the world. 

In the early progress of modern colonization, 
companies were established by the various 
aspirants to Colonial empire. Their rights ex- 
cluded others from the newly-discovered country, 
and their main object was the extension of 
trade, and the reaping of profit. Thus, St 
Thomas and Santa Cruz were colonized by the 
Danes, and placed under the exclusive control 
of a company of merchants ; in the East and 
West Indies, companies were established by the 
Dutch ; in Canada and St Domingo, exclu- 
sive companies were founded by the French ; 
and, in the vast regions of North America, the 
Hudson Bay Company was established by the 
English. Such a form of colonization was far 
from successful ; and, considering that gain is 
the main object of mercantile ambition, it could 


not very well be otherwise. As laid down by 
Adam Smith, it is the interest of a sovereign 
to open the most extensive markets for the pro- 
duce of his country, and allow the most perfect 
freedom of commerce to increase the number 
and competition of buyers, and thru-fore to 
abolish not only all monopolies, but all restraint- 
on production at home, all restrictions on \ 
carriage of goods from one district of the count ry 
to another, or on the exportation and importa- 
tion of goods to or from one country to another. 
The interests of the sovereign and people are 
always identical. Those of the sovereign and 
the mass of the nation are antagonistic to those 
of exclusive mercantile companies. A Govern- 
ment based on purely mercantile principles is, 
perhaps, the worst form of government. 

All monopolies are baneful, and ought to be 
swept out of existence. They cripple business, 
they lessen industry, they diminish wages, they 
destroy the parsimony of the merchants, they 
engender the baneful opinion that the sober 
virtues are superfluous, and that extravagant 
and expensive luxury are compatible with public 
and private prosperity. " Light come, light go," 
is a true and sensible proverb as to their general 

This monopolist aim was carried out with 
such a reckless indifference to the interests of 
the Colonists as to be highly reprehensible, and 
ultimately brought about the war between the 
States of the American Union and the mother 
country. It compelled the Colonies to sell all 
their goods to us, and to make all their purchases 


from us. The monopoly of the Colonial trade 
was once the sole object of the Colonial policy of 
the whole of Europe ; and, when the insurrection 
of the North American States was imminent, 
our merchants thought they saw ruin and dis- 
aster for themselves, and our workmen thought 
they saw a great loss of employment, in the war 
that was then about to break out, by their total 
exclusion from their trade with the Colonies. 
Then, the exports to the United States were 3J 
millions sterling, and the imports from them 
were about 1 million sterling a-year ; and now 
the former are 17 \ millions sterling, and the 
latter 89 millions sterling. The total declared 
value of British and Irish produce exported 
from the United Kingdom to the United States 
amounts to 14 millions sterling. 

Than the English colonies in North America, 
subsequently erected into the United States, 
none were more successful. They had plenty of 
good land and ample liberty to manage their 
own affairs, and they had political institutions 
far more favourable to the improvement and 
cultivation of land than the Spaniards, the 
Portuguese, or the French. In the English 
American colonies, the most imperative obliga- 
tion was the cultivation of the land, and its 
neglect was punished with forfeiture. In some 
of the provinces, as Pennsylvania, land as well 
as movables were equally divided among all the 
children of a deceased proprietor ; and, in all the 
English Colonies everywhere, land was held by 
freehold tenure, and its alienation was facilitated 
to the utmost possible extent. Plenty and cheap- 


ness of good laud give rise to rapid prosperity ; 
and its cultivation affords the most valuable 
produce to society. 

Very odious and unjust restrictions on free 
interchange were imposed on the -n-ar, iron, and 
woollen industries of the Colonies ; but these 
violations of one of the mo>i sirred rights of 
mankind, imposed for the advantage of the 
merchants and manufacturers of the mother 
country, have long been abrogated. So far as 
we are concerned, the Colonial trade is now 
absolutely free, and is allowed to flow in it> 
natural channels. 

England acted generously towards her Colo- 
nies by conferring many great and signal benefit > 
upon them by means of bounties and differential 
duties, and by drawbacks on the re-exportation 
of Colonial produce. Except as regards trade, 
the British colonist had as full and complete 
liberty as his fellow-countryman at home, and 
enjoyed even more equality in his new home 
than in the old country. As to the administra- 
tion of justice, he was, in all respects, on an 
equality with his highly-favoured fellow-subject 
in England. 

Still, neither in the British, nor, indeed, in 
any of the European Colonies, was personal 
freedom universal. Almost in every European 
Colony, the dark spot of slavery was to be found. 
This foul pollution long contaminated the 
national life in one of its fountain heads, and 
blighted the fair fame of our own otherwise 
blameless conduct towards the native and inferior 
races which have come under our sway. 


Another feature of modern Colonial life was 
the refuge it afforded to the wretched and 
miserable, to the poverty-stricken and down- 
trodden, and to the political and religious refugees 
of all nations. The English Puritans fled from 
our shores, and settled in four of the provinces 
of New England. The English Quakers settled 
down in Pennsylvania, and the English Catholics 
in Maryland. The Portuguese Jews fled to 

The spirit of adventure and enterprise did 
not burn feebly in the breasts of our ancestors. 
Drake, Raleigh, and Cook, immortalized our 
country, and conferred lasting blessings on the 
human family by the success which attended 
their dauntless bravery in their search for new 
regions in which to plant the hardy, energetic, 
and industrious Anglo-Saxon race. 

To attempt to give a history of our various 
colonies is no part of my present design. The 
object I shall endeavour to attain on this occa- 
sion is very much more humble, but not, I 
hope, altogether without interest or advantage. 
Combining all our colonies and dependencies 
into four groups, namely, the Canadian dominions, 
the African colonies, the Australian colonies, and 
the West Indian colonies and minor dependencies, 
I shall glance at the origin of their connection 
with our country, and then proceed to determine 
the positions and areas, the products, the 
population and races, the education and religion, 
and, lastly, the revenue, expenditure, and debts 
of the various groups. I shall then conclude my 
sketch of these matters by drawing your atten- 


tion to several points of great national as well 
as colonial importance. 

My first group is, as I have said, composed 
of the territories known as the British Canadian 

Nearly three and a half centuries ago, in 1534, 
Jacques Cartier, in command of two or three 
French vessels, sailed up the Gulf of St Lawrence, 
and made known to the nations of Europe the vast 
region now called Canada, which was held by 
France for a century and a halffrom 1608 to 
1750 and has since belonged to Britain. 
General Wolfs capture of Quebec, a place of 
great importance as a commercial depot and a 
military stronghold, is one of the most heroic 
seiges in the record of British military triumphs. 
Torn by the revolutionary struggles a century 
ago, and unconquered in the war waged in 1812 
between the United States of America and this 
country, Canada has developed a hardy people, 
full of pluck and vigour. An insurrection in 
1837 drew the attention of the mother country 
to a new and rising community, and ultimately 
brought about the establishment of a free local 
legislature. Subject to the acknowledgment of 
the sovereignty of Britain, all the privileges of 
an independent state have been conferred upon 
it. These rights were followed by the confedera- 
tion of the British Colonies in North America 
in 1867. 

The dominion of Canada consists of the pro- 
vinces of Ontario, Quebec formerly known as 
Upper and Lower Canada Nova Scotia, New 
Brunswick, Manitoba, British Columbia, and 



Prince Edward Island. Newfoundland refuses to 
enter the Confederation. The territory of 
Canada is enormous, and consists of the northern 
half of the North American Continent ; but the 
half of it is absolutely useless for cultivation. 
The extent of Canada, inclusive of British 
Columbia, covers a superficial area greater than 
that of the United States, and comprehends 
586,225 square miles suitable for growing wheat, 
and 928,000 square miles well adapted for grow- 
ing coarser grains and grasses. Hence, while the 
total area of Britain and Ireland amounts to fully 
120,000 square miles, and of France to 202,000 
square miles, and both France and this country 
combined feed, clothe, and maintain about 
80 millions, the Canadian territory capable of 
feeding, clothing, and maintaining inhabitants 
extends to upwards of one million and a half 
square miles, or five times the combined area of 
the whole of France and the United Kingdom of 
Great Britain and Ireland. On the land now 
covered with vast forests, and in the boundless 
prairies of Canada, there is ample space for the 
peaceful energies of hundreds of millions of men I 
It was only recently that the whole of the 
Canadian territory was explored, and its vast 
interior is still undeveloped. Immense tracts of 
land are as yet covered with forests, which only 
need to be removed to make them suitable for 
cultivation. Such a rich territory which is only 
at such a distance from Ireland as to deprive one 
of the sight of land for six days and a half could 
not fail, and did not fail, to attract large numbers 
of immigrants from all parts of the world. A 


century ago, the population was 150,000 ; and 
now it is nearly four millions, or as great as the 
population of Scotland. The increase of popula- 
tion has chiefly arisen from iimniirnition, The 
great flow of immigration has been towards the 
western parts Ontario, the new provinces <>i 
Manitoba, and the territory of the North-West ; 
but it has been steadily increasing in all the 
provinces at a fair ratio. At the same time, there 
can be little doubt that many immigrants have 
returned from Canada grievously disappointed. 
That they should have done so is not at all sur- 
prising, and is easily explained. A new country 
does not present an unlimited supply of vacant 
situations. Capital is needed for industry in 
Canada as anywhere else, and the dominion can 
supply itself with all the clerks, shopkeepers, and 
the like, whom it requires. For agricultural 
labourers and skillful artizans, there is abundant 
room. To those who are able to follow the 
plough and tend cattle, build houses, or make 
useful articles of daily life for a country chiefly 
agricultural, great advantages, and bright pros- 
pects of independence, are offered. Hardy and 
thrifty men, accustomed to rural life, can hardly 
fail to be far more successful in Canada than 
at home. 

We must not, however, close our eyes to an 
ominous factor in the political situation of 
Canada. The population is far from being 
homogeneous in origin, religion, or sympathy. 
In the province of Quebec, situated between the 
maritime and interior provinces of the dominion, 
there are one million and a quarter of inhabit- 


ants, or nearly one-third of the whole popula- 
tion, alien in race, language, religion, and laws. 
These are of French extraction. Between them 
and the other Canadians there are no signs 
of approaching political unanimity. Even now, 
the French Canadians live the primitive life of 
their ancestors of three hundred years ago. 

No State Church exists in the Canadian 
dominions, and the religious denominations are 
mainly Eoman Catholics, Presbyterians, Angli- 
cans, Wesleyans, Methodists, and Baptists. In 
the province of Quebec alone, there are upwards 
of a million Roman Catholics. A system of 
common schools is widely spread throughout the 
whole of the Canadian dominion, and is sup- 
ported by the Government, by local rates, and 
sometimes by the payment of small fees ; and, 
on the whole, is making fair progress, and, in 
some provinces, as Ontario and Nova Scotia, is 
in successful operation. Schools of a superior 
kind are also to be found in a fair proportion. 

The trade and industry of Canada are very 
considerable, and the facilities for the transport 
of goods has lately been wonderfully developed. 
Railways, ships, canals, and telegraphs have 
recently been largely augmented. Nearly the 
whole of the Canadian imports were formerly 
sent from this country. In 1864, the imports 
from the North American colonies were close 
on 7 millions sterling, and the exports 
were 6| millions sterling, and the combined 
imports and exports for the last six years have 
amounted to 20 millions sterling ; and, in 1878, 
the imports 9 millions sterling, and the 


exports 7 millions sterling. Great commercial 
activity exists between the Canadian dominions 
and (jreat Britain, the West Indies, and the 
United States. The greater part of the exports 
are sent to the United States. The staple export - 
are bread stuffs and timber. In 1875, Canada 
exported corn and flour to the value of upwards 
of 3 millions sterling, and wood and timber t<> 
the value of nearly 4 millions sterling In the 
same year, the British produce imported stood 
thus : Iron, wrought and unwrought, nearly 2 
millions sterling ; apparel and haberdashery, 
1^ millions sterling; woollen manufactures 1 
millions sterling ; and cottons, upwards of 1 
million sterling. 

Still, in the business relations of the Canadian 
dominions, there must be something radically 
wrong. Failures in business are frequent. "Why 
is this ? Because trade has over and over again 
been inflated by reckless credits, and not by an 
honest profitable business, and importation in 
excess of the available means of the people has 
taken place. Trade has also been stunted and 
crippled by a misapplication of the national 
resources. Free trade has been sorely pressed 
in Canada, and its life almost extinguished. 
Heavy taxes, under the plea of public necessity, 
but practically creating large monopolies in 
favour of its home manufactures, have been 
imposed. The energies of the people have been 
diverted from agriculture, the natural and pri- 
mary interest of ali-ryo^ng communities, and 
have been direct^w^^sindustrial pursuits, 
which can be /Carried onofar more advan- 

/.. f ~. -r-A 


tageously in old countries, with long established 
manufactures, with large stores of realized 
capital, and with the newest machinery. The 
divergence of commercial policy between this 
country and Canada and some other British 
Colonies ought to be removed to the utmost ; for 
it cannot fail to cause a good deal of heartburn- 
ing between those who ought to be on the most 
friendly terms. 

The shipping of the Canadian dominions is 
also very great ; and, in 1875, was composed of 
nearly 7,000 vessels, with a tonnage close on 1^ 
million. In 1878, Canada had nearly 6,000 
miles of railway, and 2,000 in construction. 

Here an important point demands our atten- 
tion. I refer to the construction of a railway 
crossing the whole of the Canadian territory, 
and passing over vast plains and through a 
sparse population. This great work, which is 
known as the Pacific Eailway Scheme, and 
would join the Atlantic and the Pacific Oceans 
by Railway, must be viewed as imperial as well 
as Canadian, as one involving important issues 
as between the Canadian dominions and the 
British Empire in all its parts. This scheme, 
if carried out, would open up a nearer road to 
Australia and also to India, and would also 
largely develop the resources of the British 
Canadian dominions. I think this Pacific Rail- 
way ought to be undertaken. Ontario, from a 
commercial point of view, is at present at the 
mercy of the United States. To make this great 
wheat-growing country independent of the 
United States is a matter of vital importance to 


the future welfare of Canada. Where the in- 
terests of a people lie, t hither their hearts 

Moreover, far away to the west of British 
Columbia, and bordering on the Pacific Oce;m. 
was a great power, with different interests and 
aspirations from our own. Previous to the 
Crimean War, the nearest military post of 
Russia, in 1850, was 2,300 mile- distant from 
the seaboard of the Pacific. In 1851, a Russian 
post, Nikolai vsky, and, in 1854, a Russian 
military station up the Amoor River, were 
established. Russia has now Saghalien, and 
1,500 miles of seaboard exactly opposite Van- 
couver's Island. She has also pushed railway- 
from St Petersburg towards the Amoor, and 
constructed a telegraph line from the Russian 
capital to Nikolaivsky. Were hostilities to break 
out between Russia and this countiy, where could 
we find a reliable basis of defence for British 
Columbia ? This Pacific Railway is of the very 
greatest consequence in a systematic defence of 
Britain and her Colonial dependencies ; for, 
unless the British Colonies in this quarter of the 
world can be defended, the Australian Colonies 
would be in great peril. Hence, I say, this 
railway, which would knit together important 
land centres, and would keep up our base of 
operations in the Canadian dominions, in the 
Pacific Ocean, and in Australia and India, ought 
to be constructed as early as possible. 

Canada, placed at the door of a powerful and 
ambitious neighbour, with whom she is now on 
the best terms, but against whom she has been 



arrayed in order of battle, and may, of course, be 
so again, and may also be involved in the con- 
sequences of a European war between ourselves 
and some other power, as she has been before, 
has taken a calm view of the situation, has 
carefully prepared for it, and has taxed her- 
self to hold her proper place as one of the 
greatest dependencies of the British Empire. 
Canada has always nobly responded to the 
national wishes of the mother country. And, in 
any struggle hereafter, it may be in a death-and- 
life struggle of the British Empire, whether the 
contest shall take place in Canada, in India, or 
on the shores of the Mediterranean, we may feel 
assured that neither we, nor the Canadians, will 
be slow to acknowledge the high duty devolving 
upon us of maintaining the honour and the in- 
tegrity of the British Empire, and the glory of the 
British name. The Dominion forces for this 
year consisted of 45,000 officers and men, and 
the reserve militia comprised 655,000, rank and 
file, for the same period. Besides these local 
forces in Canada, there were 2,000 men located 
at the imperial military station of Halifax. 

The constitution of the Canadian dominions is 
similar in principle to that of the United King- 
dom. The executive power is vested in the 
British Crown, and is exercised by a Governor- 
General and a Privy Council. The legislative 
power is exercised by a Parliament composed of 
two Houses, the Senate and the House of Com- 
mons. The Speaker and Members of the House 
of Commons are paid. For 1878, the total 
revenue was 4 millions sterling, and the total 


expenditure nearly 4| millions sterling, and 
the estimates for 1878 and 1879 show very 
considerable deficits. As to the revenue, 
there appears to be a gross blunder made 
in treating money, derived from the sale of 
the State land, as income. It ought to be treated 
as capital. It is to be feared that in Canada, as 
in the United States, and also in some of the 
Australian Colonies, much of the State Land is 
absolutely squandered. In 1877, the public 
debt, which has been incurred chiefly for public 
works, amounted to 27| millions sterling. 

This much as to the Canadian dominions. 
Let us consider the position of our Colonies in 

On the present occasion, I do not propose to 
discuss the policy of the war now waged in South 
Africa ; because it does not fall within the scope 
of the object I have in view, and because we do 
not have sufficient materials to enable us to form 
a just conclusion. But I do most strongly pro- 
test against the criticism which condemns the 
acts of the British rulers in South Africa as gross 
blunders, as bloodthirsty and wicked, and as 
reckless aggrandisement, and as utterly at vari- 
ance with truth and justice. 

The position of this country as to our South 
African possessions is one of extreme difficulty 
and grave peril. This difficult and grave 
position is not of recent date. It has long been 
in existence, and as to which no clear, wise, or 
prudent line of policy has been applied. The 
treatment of the natives involves consequences 
of stupendous magnitude ; for all our African 


colonies have swarms of warlike savages hanging 
around our borders. The dangers arising from 
large masses of Kaffirs crowded together, and 
allowed to squat down in the neighbourhood of the 
white races, and no serious attempts being made 
to bring them within the restraints of civilized life, 
have often been pointed out. All endeavours to 
improve them have been neglected ; money has 
been squandered in repressing them; and the 
necessity for improvement has become greater 
than ever. 

A few particulars as to the Zulus may, at the 
present moment, not be without interest. 
Ketchwayo, king of the Zulus, with whom we 
are now at war, is as warlike and bloodthirsty 
as his uncle Chaka, who, from 1800 to 1828, 
was the great native ruler of South Africa, the 
terror of the Cape, and the destroyer of South 
Africa up to the border edges of Cape Colony. 
From 1856, Ketchwayo, in the lifetime 
of his father, who succeeded Chaka, was 
virtually king. In 1872, he was crowned, 
or acknowledged as the native sovereign, 
by the representative of Britain. Whether 
the ceremony involved subjection to the 
British sovereign or not, certain promises were 
then made to the British representative by 
Ketchwayo for the better government of his 
people. These promises have been ignored by 
Ketchwayo. From 1877, Ketchwayo, with his 
300,000 or 400,000 people, and his military 
forces of 30,000 or 40,000, appeared on the 
horizon of our South African possessions, and 
forboded no good to us, or to African peace or 


European civilization. To the Transvaal he 
was also a standing menace, and a ]><T|M 'tual 
source of danger. In 1878; Ketchwayo and 
another native 4 chief, King Kreli were l>elieved 
by the British officials in South Africa to be the 
mainspring of our trouble with the natives. 
Kreli was subdued and his forces rotted, and 
Sir Bartle Frere afterwards determined to Milxlue 
Ketchwayo. How far Frere's policy will receive 
the approval of his fellow-countrymen at home 
is bitterly contested. But that he was bound 
to secure the safety and the future peace of South 
Africa is beyond all dispute. That he in- 
tended to fulfil his duty to the best of his ability, 
and, as he thought, in the interests of hi> 
country, which has ever been regardful of the 
happiness of the nations with whom our foreign 
possessions have brought us into contact, is 
equally certain. To Frere's general policy, sill 
the chief men of the British South African 
possessions agreed in all material points. For 
the present, I need not say more as to the pre- 
sent war in South Africa. 

Our South African colonies were not, in the 
first instance, peopled by the English. For 
150 years the Dutch held the Cape of Good 
Hope ; and, to this day, the majority of the 
Europeans in South Africa are of Dutch origin ; 
and, in the Transvaal, all the Europeans are 
Dutch. This state of affairs has involved us in 
a great deal of trouble ; and, coupled with 
frequent bickerings with the natives, has led to 
a gradual extension of the British power in 
Africa. The north Transvaal and the colon io> 


of Natal and the Cape embrace a territory as 
large as France and Germany combined. Much 
of this territory is uninhabitable, and much of it 
is pastoral. But, in the vicinity of the coast, and 
in the valleys along the banks of the rivers, 
there are splendid tracts of agricultural land 
capable of the highest cultivation, and well 
adapted to the cultivation of every semi- 
tropical product. African produce consists of 
food and raw materials, such as wool for manu- 
factures. Africa, has no coal or iron ; and, for 
generations, is not likely to develop manu- 
factures of her own. The discovery of diamonds 
in Griqualand gave a great impulse to her 
prosperity within recent times. The great 
Kimberley mine alone has furnished 12 millions 
sterling worth of diamonds. 

The continent of Africa is, indeed, teeming 
with rich sources of wealth ; and, if inhabited by 
the vast population which it is capable of sustain- 
ing, would, on the one hand, bring into existence 
great sources of agricultural wealth, growers of 
corn, and raisers of animal food ; and, on the 
other hand, would, in exchange, bring into our 
markets large purchasers of our manufactured 
goods. The Cape and Natal Colonies have not 
yet entered the lists as competitors with America 
in the supply of butcher meat, corn, or cotton ; 
but there is no reason, in the nature of things, 
why they should not do so in each of these 
articles. They are as favourably situated as 
America for the contest ; and, in butcher meat or 
corn, are more so than Australia. They have a 
magnificent coast line, and the geographical posi- 


tion of the Cape, jis <>nr <>f the great centres of 
our highway to India, has always been, and, the 
Suez Canal notwithstanding, will always be <t 
vital importance to us in our political and com- 
mercial intercourse with the East. The Cape 
commands the eastern route to India SUM! 

With a favourable climate, with rich tracts of 
soil, with immense plains if judiciously tilled, 
irrigated, and planted with trees capable of 
being raised to the highest degree of fertility, with 
vast mines of immense wealth in copper ; with 
splendid harbourage ; and with a magnificently 
central position, there is good reason for believ- 
ing that a splendid career is in store for South 
Africa. To attain this end, emigration must be 
established on an extensive scale, and the 
country reduced to peace and order under 
British rule. The greatest want of our South 
African possessions is a large supply of emigrant s 
acquainted with agricultural pursuits, or able 
to supply agricultural wants, that is to say, 
masons, joiners, carpenters, smiths, shepherds, 
and ploughmen, men with a little money, or 
what is as good as money in Africa, knowledge 
and handiness in agricultural and cognate in- 
dustrial pursuits. 

The first European colony in Africa was 
founded by the Dutch about 1652. The colony 
was taken by the British in 1796 ; was given up 
to the Netherlands in 1803 ; and, since 1806, 
has been permanently occupied by the British. 
Since our permanent occupation, it has been very 
largely extended. British Kaffraria was an- 



nexed in 1866 ; Bastutoland, at the head of the 
Orange River, in 1868 ; and the vast unexplored 
districts of Fingoland, Nomansland, and Griqua- 
land in 1875 and 1876 ; and the Transvaal in 
1877. The total area of the Cape Colony in 1877 
was 348,000 square miles, and the population 
was nearly 1 millions, of whom the Cape had 
721,000 inhabitants ; Fingoland and Nomans- 
land 140,000 ; and the Transvaal 300,000. 

The European inhabitants consist partly of 
the British authorities and the English colonists ; 
but the majority of them are of Dutch, German, 
and French extraction, and mostly descendants 
of the original settlers. The coloured people are 
Hottentots and Kaffirs, and the remainder are 
Malays and Africanders or half-casts, born of 
European and African parents. 

There are sheep farms of immense extent, 
often ranging from three to fifteen thousand acres. 
The tillage is yet small. Until this state of 
matters is changed, none of our African colonies 
can attain any high degree of power. No great 
nation can be merely pastoral. The graziers and 
proprietors of the soil pay small quit rents to the 
Government. In 1875, the cattle in the colony 
numbered 692,514, and the sheep 9,830,065. 

The importation in 1871 amounted to 2J 
millions sterling ; in 1873, to nearly 5J millions 
sterling ; in 1875, to of millions sterling ; and, 
in 1877, to fully 5 millions sterling. The ex- 
ports of the same years respectively were nearly 
3 millions sterling ; 4 millions sterling ; fully 
4 millions sterling ; and fully 3 millions ster- 
ling. The commercial intercourse of Cape Colony 


is almost entirely carried <m with the United 
Kingdom. Wool is the great article of export, 
and forms !)-10ths of the Cape Colony exports 
Copper ore is exported to the value of million 
sterling ; feathers, chiefly ostrich, for which there 
are large farms established, fully of i million 
sterling ; and sheep skins of nearly i million 
sterling. The British imports are apparel and 
haberdashery, cotton manufactures, and wrought 
and unwrought iron. 

The constitution and government of the Cape 
Colony was, in its present form, introduced in 
1853, and was amended in 1872, when a repre- 
sentative system of government was established. 
The executive power is entrusted to a Governor 
and a Council appointed by the Crown. The 
revenue, chiefly derived from import duties, 
which are very light, averaged, from 1869 to 1873, 
about million sterling per annum, and has 
since been largely increased. For 1878, it 
slightly exceeded 2 millions a-year. The expen- 
diture has kept pace with the revenue, and ex- 
ceeded the revenue of 1873, and is now 2 millions 
sterling. The large increase in the revenue has 
largely arisen from loans, and the increase in the 
expenditure has been for public works. The 
Cape debt in 1878 amounted to 10 millions 
sterling. Thus, Cape Colony has not escaped the 
tendency of all modern governments to get into 
debt. There are 580 miles of railway in the colony, 
and 450 miles in construction. Much requires 
to be done in laying down railways, and inter- 
secting the country with good, substantial waggon 
roads or highways. Till roads are constructed, 


a country can only be very imperfectly developed. 
This, both from a commercial and military point 
of view, is the experience of all times, and of 
all countries. There are 3,380 miles of tele- 
graphs, which have been constructed at the ex- 
pense of the government. 

Natal, the land of the nativity, and so called 
because it was first seen by the Dutch on Christ- 
mas-day 1487; was discovered by Yasco de Gamo. 
It was long considered of little consequence by 
Europeans. In the early years of the present 
century, it was laid waste by Chaka, the founder 
of the Zulu nation, and the terror of Kaffirland. 
Dutch emigrant farmers, driven out of Cape 
Colony by the British, invaded Natal in 1839, 
and entered into a Treaty of Alliance with 
Duigan, Chaka's brother. Soon afterwards, a 
band of English adventurers at Durban lodged 
a complaint with the British authorities against 
the oppression to which, under the rule of the 
Dutch Boers of Natal, they were exposed ; and, 
about thirty years ago, Sir George Napier an- 
nexed the colony of Natal to Britain. The 
British flag was subsequently hoisted at Pieter- 
maritzburgh, and has since waved unchallenged 
in Natal 

The Boers have not much to cause them to 
love us ; for we drove them beyond the English 
pale. They were first driven out of the Cape, 
and afterwards out of Natal. They then settled 
down in the Transvaal, where they are likely 
enough to give us no small trouble. Many com- 
plications on our own frontiers have already 
taken place, and our dealing with the natives 



have often been hampered by our relations with 
the Boers, whose isolation 1ms produced gross 
ignorance and moroseness of temper. 

The colony has many climates, and iN winter 
begins in mid April and lasts till September, and 
its summer begins in November and culminates 
in March. If Natal had emigrants of a good 
stamp, experienced in agricultural affairs, it 
would become one of the most flourishing pro- 
vinces of South Africa. Its great wants are 
roads, railways, and labourers. Recently a s 
tern of free emigration was carried on by govern- 
ment assistance, which has been stopped for the 
present ; but which, I think, ought to be renewed 
with increased vigour and liberality. English, 
Scotch, and Irish emigrants would do well to 
settle in Africa. 

The estimated area of the colony of Natal is 
18,000 English square miles, and there is a sea- 
board of 150 miles. The population in 1877 
consisted of 350,000 coloured people, and 20,000 
persons of European descent. Coolie emigration 
to this colony began in 1859, and has been of 
great advantage in the cultivation of the soil. 
The Coolies are mostly natives of India. As 
there is undoubtedly an element of bondage in 
the Coolie immigration, the Government has 
done all in its power to prevent the introduction 
of slavery, in any form, into the colony. No 
slave, no matter for what reason he may be 
needed, can be permitted to exist in any part of 
the British dominions. 

The greatest difficulty with which this colony 
has to contend arises from the large infusion of 


the natives within its borders. Thirty years ago 
there were not 70,000 Kaffirs in Natal, and now 
there are 350,000. They are refugees who have 
fled from the cruel, bloody, and detestable rule 
of their native chiefs, and have come to nestle 
under the shadow of our own mild, just, and 
humane government. Unless, in so far as re- 
pugnant to the principles of humanity, they live 
under their own laws, manners, and customs. 
They are massed in certain localities in the 
neighbourhood of Natal, and, as they did ages 
ago, live the easy life of savages. 

The commerce of the colony of Natal is 
almost wholly carried on with Britain. The 
staple exports of the colony are sheep-wool, 
meat, sugar, ivory, and hides. Within the last 
thirty years, the exports and imports have been 
enormously increased. In 1846, the imports were 
valued at 41,598, and, in 1877, at fully 1 million 
sterling ; and the exports were respectively 
17,142 and 690,000. 

Natal was erected into a separate colony in 
1856, and is ruled by a Governor, who is assisted 
by an Executive and Legislative Council. Its 
public revenue for 1878 w r as 370,000, and its 
public expenditure 387,000. The total debt of 
the colony is nearly 2 millions sterling. 

With regard to our African colonies, three 
points require to be noticed. These are 
peace, the burden of the present war, and inter- 
colonial confederation. 

A serious war is now being waged in Natal 
against the Zulus. To bring it to a satisfactory 
conclusion is an imperative necessity. No alter~ 


native is open to us, with a due regard to the 
safety of our African possession^, unless by the 
subjugation of Katchwayo and 'also of Secoconi, 
and utterly and for ever breaking their military 
power, and by the substitution of the authority 
of the Queen in the place of those native chiefs. 
When the honour of our flag has been vindi- 
cated, and the consequences of the disaster at 
Isandula wiped away, we will be in a position 
to dictate the terms of a lasting peace, and bring 
about a reconciliation amongst the discordant 
elements of a barbarous native government. We 
must substitute the blessings of our own civiliza- 
tion for the barbarity of the African chiefs. We 
must conquer the opposition of the natives to 
our rule by justice, mildness, and generosity. 
To the utmost of our power, we must strive to 
preserve the wretched, ill-used Zulus and the 
native tribes, who will now come under our rule, 
from destruction at the hands of cruel and blood- 
thirsty native rulers. We should take due care 
that the tribal lands of the natives are preserved 
to them. We must also guard against the per- 
petration of injustice upon the natives by our- 
selves, our colonists, or any of the Europeans 
under our control. 

Who ought to bear the cost of the present 
war ? Clearly those who get the benefit of its 
operations. Who are they ? According to my 
opinion, the whole of the British colonists in 
Africa, and especially those of Natal. For their 
protection, the war has been undertaken ; for 
their advantage and safety, the British troops 
have been sent to the field of battle ; and I'm- 


their future prosperity, the blood of our soldiers 
has been poured out. True, these colonists are 
under the sacred guardianship of the British flag, 
and are entitled to its protection ; but the Afri- 
can colonists make no contribution towards the 
general expense of the Imperial army, and are 
not so poor as to be entitled to ask the mother 
country to pay for what has been done exclu- 
sively, or, at all events, primarily, for their ad- 
vantage. Let us, by all means, deal liberally 
with our fellow-citizens in Africa ; but, on the 
other hand, let them deal in a fair and honour- 
able spirit towards us. If they cannot afford to 
pay the whole cost of the war, let us fix the 
amount they can easily contribute, and let the 
amount be paid by them according to their wishes, 
and in due regard to their necessities. For the 
future, they must abandon their supine ease and 
indifference to their own defence, and take upon 
their own shoulders the duty of effectively secur- 
ing themselves against the recurrence of wars 
which have already cost us no small amount of 
money, and the lives of not a few brave men ; and, 
acting like free men, take upon themselves the 
responsibility for all future disturbances with 
the natives of Africa, unless in great emergencies, 
when we will always stand by their side, with 
all our power, to defend them from harm, and 
maintain their and our own just rights. 

After peace has been attained, the future 
government of the South African colonies will 
necessarily engage our attention. 

The greater part of South Africa is under 
British rule, and administered by British officials. 


The Orange Free State is alone independent. 
The aggregate population of the European settle- 
ments and native states under our government 
may be approximately given at 2 millions; 
and, in a few years, the European population 
will be largely increased along with the increase 
of prosperity of the colonists. 

Some people, well entitled to give an opinion 
on this intricate question, are strong advocates 
of an immediate Confederation co-extensive with 
our African possessions ; and others, perhaps no 
less well qualified, are strongly opposed to such 
Confederation. Perhaps, as is usually the case, 
the best and safest policy lies between these ex- 
treme opinions. To force confederation upon 
the African colonies would be the greatest folly. 
To be lasting, union between states, as between 
individuals, must be based not only on common 
interests, but on a common feeling of interest. 
Almost all are agreed that confederation must 
come sooner or later. Let confederation, there- 
fore, be one of the goals towards which we ought 
to strive. Almost all are agreed that we must 
maintain the presently existing forms of repre- 
sentative government in Africa, and give a 
helping hand to its further extension. Let this 
also be another object aimed at in our general 
policy. In a lasting confederation, in a new 
state like Africa, equality must be the basis of 
the whole structure. Let us, therefore, start edu- 
cational and such-like institutions, so as to bring 
about the indispensible necessities of all free 
governments, namely, enlightenment, truth, 
justice, and honesty. The inhabitants of our 


African possessions are not homogeneous. On 
the contrary, they are widely opposed in many 
aspects, and are neither reconciled to our 
sovereign authority, nor prepared to act justly 
towards one another. Let us, therefore, keep a 
firm hold of the supreme power, so as to prevent 
all contests, all quarrels, all heartburnings, and all 
senseless endeavours to throw off allegiance to the 
British crown. All of you can easily understand 
that our Eastern possessions would not allow us to 
permit any other power, opposed to us in our 
general policy, to hold the Cape, or in any way 
endanger the Eastern route to India and Aus- 
tralia. While all the colonists and provinces of 
British Africa may be allowed ample time to 
arrive at a common understanding, we would be 
false to our own interests, and, I believe, their 
own as well, if we failed to impress the British 
colonists in South Africa with the imperative 
duty of consolidating their power upon the just 
and firm basis of a federative union, based on per- 
fect equality. Combined, the British colonists in 
Africa would speedily become a mighty people; 
and, for ages to come, might stand forth to the 
world as one of the greatest monuments of 
British sagacity and power. 

I turn aside from the coast of Africa, and 
have to call your attention to the state of our 
affairs in Australia, in the South Pacific. 

The Australian group of Colonies is com- 
posed of New South Wales, Victoria, Queensland, 
South Australia, West Australia, New Zealand, 
and Tasmania. I propose to treat each separately, 
and then make some observations applicable 


to the whole group. But ;i llw |nvliminury 
observations may be here; interposed. 

Australia owes her origin and much of 
her prosperity to English capital. Strange as it 
may appear, Australia, like all new count m--, 
has not realized capital of its own to carry on its 
industrial activity to any great extent, and tli< i 
interest of money there is therefore high. A- a 
matter of fact, I may tell you that the capital <>t 
the Australian and New Zealand Banks, whose 
capital is estimated at 9 millions sterling, ha- 
been found in this country. The Australian 
mining adventures, of any magnitude, are also 
carried on by English capital ; and an estimate 
has been made, by which it appears that no less 
a sum than 20 millions sterling of English money 
has been embarked by English Finance- Com- 
panies in the internal development of the 
Australian Colonies. If we were to add the 
amount advanced by private capitalists, this 
large sum would, at least, be trebled. Besides, 
it is notorious that loans to an enormous extent 
are made by the banks at home on Australian 
produce, and even on Australian land. Doubt- 
less, a crash will come by-and-by, and the usual 
stagnation in trade, and liquidation of bankrupt 
concerns will follow. Doubtless, the effects of the 
collapse will speedily pass away, and the colonies 
become more prosperous than ever. In the mean- 
time, the business of the Australian Colonies is 
conducted with no small vigour. Still, our 
immense loans to the Australian and other 
colonies, although they, on the one hand, give 
rise to prolific production, and bring us large 


supplies in food and raw materials for manu- 
factures, are undoubtedly a source of future 
danger to us. To be much dependent on others, 
or on investments placed beyond the limits of 
personal supervision, must always involve the 
danger of serious inconvenience and loss. Be- 
tween 1848 and 1876, emigrants remitted about 
20 millions sterling to their friends to be invested, 
and made available in our spending power. 

Formerly, nearly all the Australian colonies 
imported every manufactured article from this 
country. Now, they import less and less of such 
articles ; and, henceforward, we will be fortunate 
if we retain our trade with them in cottons, 
woollens, and hardware. 

All the Australian colonies are endowed with 
free, 'constitutional, and representative govern- 
ments. Each colony has a Parliament consist- 
ing of two houses, namely, a Legislative Council 
and a Legislative Assembly, by which the legis- 
lative power is exercised. The Council is ap- 
pointed by the Crown, and the Assembly by the 
people. The representatives of the people are 
paid for their services. The executive power is 
entrusted to a Governor appointed by the Crown, 
and the Governor is assisted by a responsible 
Ministry in the discharge of his duties. The 
Ministry is responsible to the Legislative or 
popular Assembly for its actions. 

I begin my details as to the Australian group 
of Colonies by, first of all, asking your attention 
to the Colony of New South Wales. 

It was discovered by Captain Cook in 1770, 
and was colonized by convicts in 1788. It con- 


tains 323,437 English square miles. Its greatest 
length is 900 miles, and breadth 850 miles, and 
its average length and breadth are 500 miles. 
Its population in 1810 was 8,293 ; ;md in 1877, 
exclusive of aborigines, was 662,000. A system 
of free immigration, by which 41,794 people 
were settled in the colony, existed from 1829 to 
1840, when the colony was released from the 
necessity of receiving transported convicts from 
this country. 

This colony is very prosperous. It has 
splendid mineral resources of great value, and 
is rich in coal. Its gold mines cover a vast 
area. The export of gold dust and bars and 
coin in 1873 amounted to 2\ millions sterling, 
but has been largely on the decrease for the last 
few years. It has also valuable copper mines. 
Such rich mineral wealth could not fail to attract 
thousands of immigrants, and, as we all know, 
actually did attract them, and largely swelled a 
population which had afterwards to devote their 
energies to agricultural and ordinary industrial 

It carries on a direct trade with India and 
China ; and the direct trade with Asia is likely 
to increase. It largely supplies itself with 
many articles originally imported from|*this 
country. It remains true to the principle of 
free trade, and its customs duties are light. Its 
trade was more than quadrupled between 1850 
and 1864, was on the decline between 1864 and 
1870, and has since been on the increase. Its 
imports in 1870 amounted to 7f millions ster- 
ling, and in 1878 to 14| millions sterling ; and 


its exports in these years amounted respectively 
to close on 8 millions sterling, and nearly 13 
millions sterling. Fully a third of the exports 
and of the imports are sent to and from the 
United Kingdom, and the remainder chiefly to 
and from the British possessions. The staple 
export is wool, and the British imports are 
notably textile fabrics and iron. 

There are millions of acres of magnificent 
land entirely desolate in the colony, and the 
greatest want is population so as to bring the land 
into cultivation. In 1876, it had 24,500,000 
sheep, fully 3,000,000 horned cattle, 358,000 
horses, and 190,000 pigs. The total area under 
cultivation is 297,575 acres, of which 154,000 
acres are under wheat. The total number of 
freeholders and leaseholders has been estimated 
at 31,272. 

The revenue of the colony is chiefly derived 
from customs, of which one half is received from 
the import duty paid on spirits. The other 
revenue receipts are derived from the sale and 
the rent of Government land. Including loans, 
the revenue, in 1870, was 2^ millions sterling ; 
and, in 1878, nearly 5 millions sterling ; and the 
expenditure, including public works, was, for 
1870, 2\ millions sterling ; and, for 1878, 4| 
millions sterling. The public debt, in 1860, was 
close on 4 millions sterling ; in 1870, was fully 
9 millions sterling; in 1875, was nearly 11 
millions sterling, and is now 15f millions sterling. 
The debt has been incurred chiefly for railways 
and public works. In 1878, nearly 700 miles of 
railway were open, and fully 8,000 miles of 


telegraph wires had been laid. The dangers 
arising from too great railway extension are not 
to be overlooked; because they involve heavy 
taxation for what may be, for years, an unre- 
raunerative investment. 

Victoria is the next colony in order. Its 
first colonists settled in 1835. It \v:is known as 
the Port Philip district, and was disjoined from 
New South Wales, and erected into a separate 
colony in 1853. It has an area of 88,198 English 
square miles. The total area of the colony is 
556,447,000 acres, of which 16,000,000 acres 
were alienated in 1874, and 12,500,000 acres 
were occupied in 1875. Not much more than 
1 ,000,000 acres were then under cultivation. The 
cultivation of the vine has become a great 
thriving industry of this colony. In 1875, 
there were 38,500 holders of land. The 
total estimated population of the colony in 1 879 
was 888,000, and in 1836 was only 224. The 
increase of the population was greatly aided 
by a system of assisted immigration at the ex- 
pense of the government. The immigration 
greatly declined as soon as the government aid 
was withdrawn. In 1 863 when there were 8,622 
aided either wholly or partially immigration 
to this colony reached its highest point. 

In all the Australian colonies, the alienation 
of the State lands has been reckless, and huge 
tracts have been rented to squatters under the 
reserved power of selecting portions of the land. 
This system of sale and lease has led to the pur- 
chase of vast tracts, at low rates, by capitalists, 
who can do nothing except feed sheep and cattle. 


It prevents farmers or selectors from obtaining a 
foothold in the country. Already the cry has 
gone forth to have these huge States broken up ; 
and there can hardly be any doubt that, in 
anew country like Australia, this system of land 
alienation will lead to serious disturbances, per- 
haps bloody revolutions, in the colonies. 

In 1875, there were in the colony 196,184 
horses, 1,054,598 horned cattle, 11, 749, 5 32 sheep, 
and 140,765 pigs. 

In 1867 and in 1878, the revenue amounted 
respectively to 3 millions sterling and 4J millions 
sterling; and the expenditure to 3^ millions ster- 
ling, and fully 4^ millions sterling. The public re- 
venue is derived, for the most part, from customs, 
chiefly derived from duties imposed on wines, 
spirits, and tobacco ; and the largest portion of the 
expenditure has been made upon public works. 
The public debt of Victoria for 1878 was 20 mil- 
lions sterling, of which the greater part has been 
expended on railways and other public works. 
The railways formed in 1878 comprehended 1,000 
miles. Of telegraphs, there are 3,000 miles 

The colony of Queensland has a vast area, 
which is estimated at 669,520 English square 
miles, or 44,428,492,800 acres, which is equal to 
one-fifth of the whole of Europe. It has a 
seaboard of 2,250 miles. The earliest British 
settlement was founded by the transporta- 
tion of convicts in 1825. It was regularly 
opened to settlers in 1842, and had a total popu- 
lation of 8,575 in 1851, and, in 1878, of 210,510 
persons, of whom 13,269 were Chinese. No 


reliable information ex UN us to the numbers of 
the aborigines. Formerly, the emigrants went 
from the United Kingdom ; now they are chiefly 
obtained from China and the South Sea Islands. 
This change of the nationality of the emitrnmN 
to Queensland may have most important results 
in the future development and progress of tlii^ 
colony. The large invasion of Chinese colon 
may considerably modify its present Briti-h 

Queensland has followed the footsteps of Vic- 
toria rather than of New South Wales. The 
colonists have directed their energies to mining, 
and not, as the first settlers of such a colony as 
Queensland ought to have done, to the feeding 
of the people by the products of the soil. It 
contains coal and also gold. Of the former, the 
produce was 31,000 tons in 1876 ; and of the 
latter, it was 1,306,431 in 1877. Queensland 
is essentially a pastoral colony, and contains 
great sheep farms. Indeed the block, or great 
run system, was carried out to such an extent 
that, in 1872, an Act was passed to remedy the 
evil, and enforce a partial stocking and occu- 
pation. In 1876, the live stock consisted of 
130,289 horses, 2,000,000 horned cattle, and 
7| million sheep. The cultivation of cotton and 
sugar-cane has been attempted. 

The growth of the colony has been very rapid. 
In 1871, the imports exceeded 1 millions ster- 
ling, and, in 1877, they were 3J millions sterling; 
and the exports for these years were 2| millions 
and fully 3.] millions sterling. The COIIIIIKT- 
cial intercourse of this colony is with the sister 



colonies of Australia, and the United Kingdom. 
The staple exports are wool, hides, tallow, pre- 
served meats, and minerals ; and, in all these 
things, this colony has to contend against a 
strong competition. The British produce im- 
ported is chiefly apparel, haberdashery, and 
wrought and unwrought iron. Several hundred 
miles of railway have been constructed, and 
there are about 5,000 miles of telegraph. 

The public revenue and expenditure was 
nearly trebled between 1866 and 1875. In 
1866, the income was under half a million ster- 
ling ; in 1878, it was \\ millions sterling ; and 
the disbursements were respectively half a 
million and 1 millions sterling. The taxation 
of the colony is not high, but is badly distri- 
buted. The greater part of the revenue is 
derived from customs duties, and from the sale 
and rent of public lands. The chief expenditure 
has been upon works of general utility, and upon 
Government aid to immigration. In 1878, the 
public debt was 10 millions sterling. Large 
numbers of immigrants have been settled on 
Government claims, and to some extent by 
Government money. This fact may involve the 
colony in another financial crisis like 1866 ; for 
it is always dangerous for a Government to have 
its people reduced to a semi-pauperised condition 
by State aid. When people have everything 
done for them, they never exert themselves as 
they ought. 

The colony of South Australia has made con- 
siderable progress, and has not, in any way, 
endangered its prosperity. Its total area is 


calculated at 903.690 English square miles. In 
1866, there were 739,714 acres under cultiva- 
tion ; and, in 1876, there were 1,444,586 acres, 
of which there were 898,820 acres under wheat 
that is to say, the acreage under cultivation was 
more than doubled in 10 years. This colony 1ms 
many natural advantages, and much valuable 
soil for grain and flour, for grapes of fine quality, 
and for every description of semi-tropical or 
other fruits. None of those sources of wealth 
have been neglected. It is, however, subject to 
great drought ; and, although the farming is not 
high, the yield of wheat is 11 bushels per acre. 
Great loss was sustained by the colonists on 
their harvest of 1877. 

It was first colonized by emigrants sent out 
from England under the auspices of the South 
Australian Colonization Association, which, in 
1835, obtained an imperial charter of the Colon- 
ial lands, under the condition of selling the land, 
and of giving aid to agricultural labourers. In 
1844, the population was 17,366, and, in 1876, 
212,000. The aborigines are not included in 
those numbers ; and, in the settled districts, 
they were found to be 3,369 in the year 1871. 

The famous Burwa-Barra copper mines were 
discovered in 1845, and thence copper became 
the third article of importance in the exports of 
this colony exclusive of bullion and specie an 
exclusion which applies to all the Australian 
colonies. The imports in 1871 were fully 2 
millions sterling, and in 1878 were 5f millions 
sterling ; and the exports of the corresponding 
years were 3 millions sterling and fully 5| 


millions sterling. The imports into the colony 
are articles of general consumption, such as 
textile fabrics, British colonial produce, and 
principally drapery goods. Wool, wheat and 
flour, and copper are the three staple articles 

In 1871, the public revenue amounted to f 
of a million sterling, and in 1878 to 1^ millions 
sterling, and the expenditure for the correspond- 
ing years to f of a million sterling, and nearly 1^ 
millions sterling. The greater part of the revenue 
is obtained from very moderate customs duties, 
and from the sale of the Crown lands. The main 
portion of the expenditure has been paid away 
for public works. The public debt, which was 
incurred for reproductive works in the colony, 
namely railways, telegraphs, and harbours, was 
incurred between 1852 and 1876, and amounted to 
almost 6 millions sterling. In 1875, this colony 
had 252 miles of railway, and 4,000 miles of 

The colony of Western Australia is next in 
order, and has an area of from 1,600 miles from 
north to south, and of 1,000 miles from east to 
west, and a total area of 1,057,250 English 
square miles. It was first settled in 1829, and 
in 1871 had a population of 25,353. Its agri- 
cultural prosperity is great, and its live stock of 
horses, cattle, and sheep considerable. Its ex- 
ports are almost entirely of wool and lead ore. 
Between 1871 and 1875, its imports and exports 
have both almost been doubled. For the present, 
all I need say as to this immense territory, which 
is eight times larger than the area of the United 



Kingdom, is that here there is ample room for 
the growth of several mighty kingdoms. Like all 
the Australian colonies, it has all the advantages 
of a representative form of government. Like 
them it will, I believe, grow up in a love of the 
blessings of just and equal freedom, conferred 
upon all the Australian colonists by the mother 
country. How soon this colony may start up 
and become a rival of her sister colonies, who 
can tell or who venture to predict ? 

The colony of New Zealand is most assiduous 
in developing its resources, and yet is in a more 
dangerous position than Queensland. It is not 
40 years old, and is already in debt to the extent 
of 22 millions sterling. It has expended vast 
sums on public works, and especially on rail- 
ways. Had her resources been husbanded, a 
splendid, unbroken future was in store for her. 
But her trade is almost certain to encounter 
serious obstructions as soon as no more money 
can be borrowed. Public extravagance has 
necessitated high tariffs ; but poverty will, 
doubtless, induce thrift, and thrift will bring 
about their abolition. The bitter fruits of 
rejecting the lessons of experience are mostly 
taught to mankind by some terrible misfortune. 

Sir Julius Vogel has given a brilliant picture 
of the great prosperity of the colony he repre- 
sents in this country. He says people are still 
eager to buy land, and the influx of immigrants 
is continuous. He also contends that the colony 
of New Zealand is not burdened with debt, 
and that, for financial purposes, the railways 
constructed ought to be regarded as ordinary 


V J& 


roads. He is, no doubt, right in the main. But 
a colony, like a private individual, may, and 
often does, find out, when too late, that too much 
capital expended on gigantic improvements, do 
not pay in time to replace the investment of 

New Zealand was first visited by the Dutch 
navigator, Tasman, in 1642. It was surveyed 
by Cook in 1769, and consists of three prin- 
cipal islands, and has a coast extending 3,000 
miles. The whole group is 1,000 miles long, and 
200 miles broad ; and the area has been esti- 
mated at 105,000 English square miles, of which 
two-thirds are admirably suited for agriculture 
and grazing. It has no less than 12,000,000 
acres of virgin soil suitable for cultivation, and 
50,000,000 acres, if cleared, for pasture. The 
yield of wheat is from 31 to 32 bushels per acre. 
Exclusive of aborigines, its population in 1851 
was 26,707 and in 1879 was 414,412. At the 
census of 1871, there were 49,152 persons at the 
gold diggings ; and, in 1874, the native Maoris 
numbered 45,470 souls, while, in 1857-8, they 
were 55,970. The savage races with whom 
Europeans have come into contact have, as a 
rule, not only receded before the white man, but 
have ultimately perished. 

The colony of New Zealand has carried out 
an extensive system of colonization by means of 
Government aid, and the surplus immigrants 
over emigrants, in 1874 and 1875, were 38,000 
and 25,000 respectively. Of course, the Colonial 
Government did not pay the whole of the cost 
involved in this surplus immigration ; but, in 


1875, it did pay a portion of the cost of 20,000, 
and from 1866 to 1873 it paid for an average of 
8,000 persons a-year. From 1871 to 1876, this 
colony assisted 78,495 immigrants, and received 
and housed them on their arrival. As might 
have been anticipated, and ought to have been 
foreseen, many of the artizan class of immigrants 
suffered considerable temporary hardship. Still, 
persons with a little capital, and with agricultural 
knowledge, and with habits of frugality and self- 
denial, are, before long, sure to succeed in New 
Zealand. In this colony, there is ample provision 
made for education, free, secular, and compulsory, 
and for the best pupils being educated at 
advanced schools. 

The trade of this colony has increased with 
great rapidity. It has been increased twenty- 
fold between 1856 and 1878. Between these 
years, the imports rose from half a million 
sterling to 8f millions sterling ; and the exports 
from a quarter of a million sterling to 6 millions 
sterling. The staple exports are wool, corn, and 
meat, and the British imports mainly comprise 
iron, textile fabrics, apparel, and haberdashery. 
Gold was discovered in the colony in 1857, and 
in the year 1877 it was exported to the value of 
1^ million sterling. The total value of gold ex- 
ported from 1857 to 1877 was 34J millions 
sterling. Such vast mineral wealth gave, of 
course, a great impetus to immigration ; and, in 
fact, as you all know, the people were seized 
with the gold fever, and rushed to the gold 
diggings to become, in some instances, very rich, 
and, in most cases, to learn that gold digging 


was not the shortest way to fortune, but the 
broad way to ruin. However, out of evil came 
good, and the people betook themselves to agri- 
culture and grazing, and improved the colony, 
and enriched the world. 

The public revenue is derived from two great 
sources ordinary and territorial. The chief 
ordinary revenue is obtained from customs duties 
on imports, and forms three-fourths of the 
whole ; and the territorial, from Crown lands, 
departuring licenses and assessments, and export 
duties on gold and silver licenses. The total 
revenue for the year 1866 was nearly 2 millions 
sterling ; in 1870, it fell to 1 million sterling ; 
in 1874, it rose to 3 millions sterling ; in 1875, 
it fell to 2| millions sterling ; and, in 1878, was 
fully 2 millions sterling. The expenditure 
for these years was respectively nearly 2 millions 
sterling, 1 millions sterling, 3 millions sterling, 
2| millions sterling, and 4 millions sterling. 
The colony has an extensive system of railways, 
constructed at the expense of the Government ; 
and, in 1878, it had 3,170 miles of telegraph. 

New Zealand is a large customer of the 
mother country ; and has, I believe, a great 
destiny before her; but her public men and 
private citizens ought to adopt a wise and 
prudent policy in their financial affairs. Such 
changes in her finances as the figures I have 
given ought to raise caution to the rank of a 
public virtue of the highest order amongst 

I now arrive at Tasmania, which is the last 
of the Australian group of colonies. 



Tasmania, formerly Van Dieman's Land, is a 
beautiful country, full of natural riches, and only 
needs a large and enterprising people to develop 
great wealth. It has all the elements of a great 
and solid prosperity. Its physical features are 
full of variety, and combine all the elements of 
good scenery, grandeur, picturesqueness, and 
beauty. Its atmosphere is bright and clear. 
The cost of living in the island is cheaper than 
in England. Of the old convict days, wild 
stories are still rife amongst the colonists. The 
soil is rich in coal and iron ore, and gold has 
also been found in the colony. 

It was discovered by Abel Tasman, a Dutch 
navigator, in 1642. Tasman was in love with 
the daughter of Anthony Van Dieman, who was 
Governor of Batavia, and he called the island he 
had discovered by the surname of his lady-love, 
and the name stuck to the island for two cen- 
turies. It was thought to be the extreme point 
of New Holland ; but, in 1798, it was proved to 
be an island. It was afterwards partially ex- 
plored by Cook, and was made an English penal 
settlement in 1803. The transportation of con- 
victs ceased in 1853. 

The area of Tasmania is estimated at 26,215 
English square miles, or 16,778,000 acres, of which 
15 i million acres are in Tasmania proper, and 
the remainder in small islands in the vicinity. 
The total number of acres sold in 1874 was close 
on 4,000,000, and not quite 1,000,000 acres were 
under cultivation. In 1878, 348,841 acres were 
cultivated, and the remainder was composed of 
arable land and pasture. In the same year, there 


were 22,195 horses, 126,882 cattle, 1,831,125 
sheep, and 55,652 pigs. 

Since 1820, there has been a constant stream 
of immigration. In 1824, there were 12,000 
whites ; in 1870, there were 99,328 ; in 1875, 
there were 100,613 ; and, in 1877, there were 

From 1868 to 1875, the emigration was 
greater than the immigration. The reasons for 
this are not far to seek. The Australian colonies 
are competitors against each other in the labour 
market, the facilities for changing from one 
colony to another at the expense of the colonies 
are considerable, and the inducements to forsake 
agriculture for the gold fields, if not wise, are 
perfectly natural in simple hunters for rapidly 
acquired fortunes. All men believe in their own 
luck, and in their being the special favourites of 
good fortune. 

The imports for 1871 were f of a million ster- 
ling, and, for 1878, fully 1 millions sterling ; 
and the exports for these years were f of a mil- 
lion sterling, and fully 1 J millions sterling. The 
commerce of this colony is almost wholly with 
the United Kingdom, and the neighbouring 
colonies of Victoria and New South Wales. The 
staple export is wool. 

For 1 871, the public revenue amounted to \ of 
a million sterling, for 1875 to 340,000 ; and for 
1878 to 386,060 ; and the expenditure for these 
years was much the same as the revenue. The 
public debt, in 1878, amounted to If millions 
sterling, and had been incurred in the prosecu- 
tion of public works. The railways are insignifi- 


cant, and telegraphs have been laid in the settled 

Generally, as to our Australian colonio. ;i 
few remarks may not be amiss. I shall confine 
myself to three points, namely, commercial 
unanimity between them, the necessity of de- 
fence, and of federative union. 

I consider a commercial policy for the whole 
of Australia as a very pressing requirement. But, 
us the several colonies have full power to adopt 
any fiscal policy they please, I think we ought 
not to be too energetic in pressing this necessity 
upon our Australian fellow-subjects. As between 
the Australian colonies themselves, the abolition 
of all customs barriers would largely develop 
the resources of each colony, and would also put 
an end to the present costly schemes of rivalry 
in affording dangerous facilities for settling in 
one colony and not in another. A continuance 
of the present Victorian policy of protective 
taxation will be highly injurious to the Vic- 
torians themselves ; and, if adopted by other 
British colonies, may lead to unfortunate 
quarrels between our colonists and ourselves. 
From a general point of view, to be under 
the necessity of defending the Australian 
colonies, or to have our home policy influenced, 
or largely determined by their connection with 
us, and yet be treated as aliens in all matters 
of commerce would be unendurable, and would 
not be tolerated by any enlightened or sensible 
Ministry of the British crown at home. Such 
a contingency would effectually involve either 
legislative union with the mother state, or 


the concession of complete independence to the 
Australian colonies. I do not wish to raise 
difficulties ; I wish merely to have a clear 
policy for the future, for the near future. The 
progress of the Australian colonies has been 
rapid and surprising. It is destined to be still 
greater ; and, although this may not involve 
an increased proportional demand for our manu- 
factured goods, we ought to see that the com- 
mercial policy of all parts of the British empire 
is fair, just, and in harmony with correct 
economical principles. 

The Australian colonies are utterly defenceless 
against any great aggressive power which chose 
to attack them, and would be an easy prey to the 
first sturdy marauders who penetrated the south- 
ern seas with hostile intentions against them. 
In particular, they are, in their present condi- 
tion, utterly defenceless against any great 
European power with which we might, for any 
reason, European or Asiatic, commercial or 
political, be at war. As an example of what I 
mean, I beg leave to say that the late Russo- 
Turkish war might easily have led to a great 
European conflagration, in which Russia and 
France might have been on the one side, and 
Turkey and Britain on the other, and Austria 
and Germany, at least for a time, neutral. Such 
a combination, if accompanied by an insurrection 
in British India, or even by threatened hostilities 
on the north-west frontiers of India, might 
temporarily have taxed the energies of this 
country to the utmost. To overlook such con- 
tingencies may, for a time, be very convenient 


for certain parties in the State, but implies a 
want of political foresight, and a reckless dis- 
regard of the possibilities of 'the future. With- 
out delay, all the Australian colonies ought to be 
earnestly urged to provide for their defence on 
some common basis. As yet, the Australian 
colonies will not look at the matter in this light, 
and are quite content to live on the beggarly 
policy of "sufficient for the day is the evil 
thereof." They must be roused from their 
lethargy ; and, like ourselves, be compelled to 
look the difficulties of the future in the face, and 
prepare for them with prudence. 

A union after the fashion of the United States 
would be capable of organizing a military and 
naval force quite sufficient to cope with all but 
the most aggressive powers ; and, if attacked by 
any such power, the colonies ought to be certain 
of being amply and timeously protected by the 
parent state. Such a union would involve con- 
siderable expense both here and in the colonies ; 
but, as a system of isolated defence is inadequate, 
it ought to be abandoned for a union which 
would give perfect strength and safety. New 
South Wales and Victoria alone have any local 
forces. But their military and naval arrange- 
ments would be of little avail in any serious 
contest with a foreign foe ; because they are not 
welded into any uniform system. The cost ought 
not to prevent a complete system of defence 
being organized. The Australian colonies are 
well able to pay for their protection from 
external aggression as well as from internal 
disorder. True, armies and navies cripple 



the powers of competing traders, but they 
also protect trade, and secure liberty and 
just laws to those who are free, and are re- 
solved to maintain their freedom. Hitherto, 
the whole expense of upholding the peaceful re- 
lations of all the colonies at the different Courts 
in Europe and Asia, and at the innumerable com- 
mercial ports throughout the world, and of 
defending the whole empire, has almost invariably 
been defrayed by the British people at home. 
This ought not, in fairness, to remain so for ever, 
and justice demands that a change ought to be 
made without delay. Whatever measures may 
be adopted for defraying the expense, I have no 
doubt, in my own mind, as to the absolute 
necessity for concerting measures for the defence 
of our Australian colonies. 

The question of federation as between the 
colonies of Australia is one surrounded with 
enormous difficulties ; and, although it does not 
involve impracticability, it is not one to be 
lightly dealt with. The Australian colonies are 
still in a nebulous condition. They came re- 
cently into life. They are still undergoing the 
elemental processes of political existence. They 
are separated from one another by wide dis- 
tances, which are as yet undisturbed wilder- 
nesses, and interpose all the hindrances arising 
from isolated intercourse, unless by the sea. As 
yet, they have no central rallying point, conse- 
crated by the heroism of noble acts done in 
defence of their new homes, or ennobled to 
them by the patriotic deeds or the sacrifices 
of their fellow-citizens in their national cause, 


or endeared by emotions arising from similarity 
of origin. Unless in the mother country, they 
have no central point of attraction. New South 
Wales and Victoria are both rivals for the 
leadership; and all the colonies individually 
have grown up to have aims and interests of 
their own. The interests of the different colonies 
are by no means identical ; and those interest- 
which are common to them are not yet in a con- 
dition to be easily modified by a powerful, over- 
whelming sentiment of general interest, or com- 
mon danger. To bring about a lasting union 
between the Australian colonies will tax the 
efforts of the most enlightened Colonial Secretary ; 
and to succeed in effecting their permanent union 
will rank as one of the highest efforts of benig- 
nant statesmanship in the history of the British 

With your permission, I now proceed briefly 
to speak of our West Indian colonies and minor 
dependencies, which, inasmuch as they are 
worked almost solely for the advantage of their 
owners, ought properly to be called estates. 

The West Indian colonies consist of Jamaica, 
the islands extending southwards, and British 
Guiana, all on the north seaboard of the South 
American continent. They have very distinctive 
and varied climates, and are all within the region 
of the tropics. They are refreshed by the cool 
sea breezes or the trade winds, and are exempt 
from violent changes of unbearable heat or un- 
endurable cold. The nights there are clear and 
brilliant, the air serene, and a soft tranquilitv 
pervades all nature. 


The staple exports are sugar and coffee, but 
have to compete with the continental protection 
of the sugar industries. That protection is carried 
out in France and Holland by means of ostensible 
repayments of duty on importation, but, in reality, 
by means of bounties on exportation, paid to a 
few rich people in support of a monopoly, which 
imposes a great burden on the national ex- 
chequers of our foreign competitors, raises the 
price on their own consumption, gives refined 
sugars to the consumers of this country at a 
much less price than they would otherwise be 
able to obtain them, and endangers an extensive 
trade in our midst by artificial and unjust com- 

From 1822 to 1827, the average total amount 
of imports and. exports of the "West Indies was 
15 millions sterling ; but, whatever advantages 
have been conferred on the West Indian colonies 
by the emancipation of their slaves, and, from a 
moral point of view, these are, beyond all ques- 
tion, very great, their material prosperity has 
been seriously injured, and their productive 
capacity and their ability to pay for goods 
from this country have been considerably 
diminished. In 1830, the total amount of im- 
ports and exports was 12^ millions sterling ; and, 
in 1850, it had fallen to 8 millions sterling. 
However, there are now signs of a revival of 
prosperity ; for, in 1870, the combined imports 
and exports amounted in value to 15 millions 
sterling. This favourable state of matters does 
not, I am sorry to say, prove that the labour 
question in the West Indies has been satisfac- 


torily settled by Ilio demon tinted superiority of 
free labour. The truth is, that the revival of 
these colonies is coincident with and depend- 
ent on the imported labour of Indian coolies, 
Chinese, and Negroes, whose condition, how- 
ever advantageous to the poor, miserable, nearly 
famished labourers, is a form of personal servi- 
tude for a term of years. This system of im- 
ported labour is a serious difficulty, and involves 
an exclusion of the natives from competition for 
home labour. I think there ought to be esta- 
blished in the West Indian plantations a large 
and generous scheme of bestowing farms on free 
negroes who, after the term of their covenanted 
service has expired, chose to settle down 
in the islands to which they had emigrated. 
British Guiana has paid a of a million sterling 
for coolie immigration. 

Jamaica and Demerara, Trinidad and British 
Guiana, are of the utmost importance to us. 
Jamaica and Demerara have long been the source 
of our supplies of sugar and rum ; and, if these 
islands did not belong to us, France would have 
beaten us out of the sugar market, and obtained 
a monopoly of the trade. With fair competition 
in the sugar trade, and with our present sources 
of supply, we will hold our own in the sugar 
market either at home or abroad. 

All these islands are fairly prosperous, and 
they have had their success increased by the 
war which has, for some time, existed between 
Spain and her colony Cuba. The trade of the 
West Indies ought to be valuable to us ; for the 
West Indian Islands send us exports to the value 


of 5 millions sterling a-year, and buy goods from 
us to the value of half that amount. Jamaica 
alone yearly exports 1 millions sterling worth 
of produce. Guiana is the point d'appui of our 
trade with the inland region of the north Amazon, 
and with South Venezuela. Were these coun- 
tries opened up to European commerce, our 
trade in that part of the world would be greatly 
increased. Trinidad is useful to us in connection 
with North Venezuela and the Valley of the 
Orinoco. There a large transit trade is conducted 
with the United States, Canada, and several 
European countries. Without these footholds, 
we would have no chance of successfully coin- 
petiting against the United States for the trade 
of South America. 

The island of Ceylon was first settled in 1505 
by the Portuguese, and was taken from them by 
the Dutch in the early part of the following 
century. In 1795-6, it was seized by the 
English Government, and annexed to the British 
Indian Presidency of Madras ; and, in 1798, was 
erected into a separate colony. In 1815, war 
was declared against the native Government of 
the interior ; and, after the defeat of King 
Kandyan, the whole island was placed under 
British rule. Its extreme length is 266 miles ; 
its width is 140 miles ; and its area comprises 
15 million acres. Its population is nearly 2| 
millions, of whom, in 1876, there were 2,000 
belonging to the military establishment. Of the 
total population, there are nearly 5,000 British, 
14,000 other wliites of European descent, and 
the rest are coloured people. In 1871, the census 


showed a total population of 2 millions, of 
whom 1 millions were Buddhists, and half a 
million worshippers of Sives. . About a quarter 
of a million were Christians, and all of them were 
of European descent. 

In 1871, the imports amounted to 4$ millions 
sterling ; and, in 1878, to 5 millions sterling : 
and the exports of these years were fully 3 
millions and 4 millions sterling. The commer- 
cial intercourse with Ceylon is mainly with the 
United Kingdom and British India. The staple 
of Ceylon, coffee, was exported, in 1878, to the 
value of 2 millions sterling. British manufac- 
tured cottons to the value of a quarter of a million 
sterling were imported in 1878 into Ceylon, and 
of twice that value in 1875. Of the total trade 
of the island, England alone has from 4 millions 
to 5 millions sterling, which are absorbed by 
English merchants, manufacturers, and planters, 
and become a great source of wealth in this 
country. Here, however, as in India, our suc- 
cess has borne hard upon the native people, who 
are almost wholly engaged in the service of the 
Europeans in growing coffee to enrich the 
English coffee planters, and, if you will, to bring 
wealth into this country. In Ceylon, there is 
no native middle class, and no fusion of the Por- 
tuguese, Dutch, and English races, who have 
successively conquered and retained the country 
for their own special advantage. Here our 
riches are placed on a treacherous foundation ; 
for the great bulk of the people are always 
hanging on the verge of starvation. Gain is the 
prominent aim of the mercantile principle of 


government, and the people and everything else 
must be subordinated to this primary object, 
the dictates of humanity become darkened, the 
eternal ideas of justice become warped by a 
narrow sense of worldly interests, and the ruler 
as well as his subjects become degraded. Than 
the exactions of a modern trade policy of govern- 
ment, nothing can be more severe, nothing more 
unjust, nothing more tyrannical. In Ceylon, 
there is neither the debt, nor the discontent, nor 
the misery which we find in our colossal Indian 
empire ; but the natives of Ceylon, the Singhal- 
ese, the Tamuls, and the Malays, are exactly 
what they were in the time of the Dutch and 
Portuguese governments. We certainly do not 
allow the natives to be so cruelly treated as they 
used formerly to be by their previous conquerors ; 
but we have done little or nothing to raise them 
from the misery in which we found them, and we 
have had no influence whatever upon their inner 
life and conscience. Neither the Mauritius, nor 
Ceylon, nor the West Coast settlements, have 
much for which to thank us. 

The present constitution of Ceylon was 
established in 1831 and 1833. A Governor is 
appointed by the Crown ; and, aided by the 
Executive Council, carries on the administration 
of the island. In 1867, the public revenue 
amounted to less than 1 million sterling, and, in 
1878, was fully 1 millions sterling ; and the 
revenue for the corresponding years was under 
1 million sterling, and 1 millions sterling. The 
principal sources of revenue are customs duties, 
licenses, sales, and rents of public land. The 


expenditure i& chiefly for the judicial estublish- 
inent and contribution to the imperial ex- 
chequer for military expenditure. The public 
debt was, in 1878, reduced to 350,000. 

Hong Kong is the last of the minor depen- 
dencies to which I can direct your attention, 
which, I am afraid, I have almost wearied 
beyond the hope of pardon. 

It is situated on the south-east coast of Chin; i. 
at the mouth of the Canton river, and about 40 
miles east of Macao. It was formerly an integral 
part of China, and was ceded to Great Britain in 
1841. It is mainly used as a factory for British 
commerce with China, and as a British military 
and naval station. Its length is 11 miles, and 
its breadth from 2 to 5 miles, and its area is 
29 English square miles. Its total population, 
in 1876, was 140,000, of whom 6,000 were 
Europeans, 2,600 Indians, and 115,000 Chinese. 
Of the Europeans, 869 were British, and 1,367 

The trade of Hong Kong is virtually part of 
the commerce of China, and is chiefly carried 
on with Great Britain, the United States, and 
Germany. Its chief article of export to Britain 
is tea, and the British imports are chiefly textile 
fabrics, especially cottons for China. 

The administration is conducted by a Gover- 
nor appointed by the Crown, and he is aided by 
an Executive, and also by a Legislative Council. 
In 1871, the revenue was 176,000, and, in 
1878, was 189,526 ; and the expenditure, 
respectively, 187,000 and 182,104. The 
Government of Hong Kong pays the British 


Home Government 20 000 a-year as a military 
contribution to the national exchequer. 

This much, which is very little, must suffice 
for what I have to say as to the minor colonies 
and dependencies of the British crown. 

I now wish to direct your attention to some 
points of great national as well as colonial 
interest in connection with our gigantic, wide- 
spread, and heterogeneous Colonial empire. All 
the points which I am to notice refer to the 
consolidation of our Colonial empire, and are 
comprised under the heads of emigration, com- 
mercial policy, defence, and confederation. Al- 
ready, in regard to the three great groups into 
which, as I think, our Colonial possessions 
naturally fall, and into which they will naturally 
gravitate, I have made several observations ; but, 
having concluded my treatment of these different 
groups, I wish to bring my remarks on this great 
question to an end by considering these points 
very briefly from a general or imperial point of 

Emigration is an absolute necessity of our 
existence. We have a superabundant popula- 
tion, and our territoryat home is too narrowfor us. 
Land in this country does not receive, and is not 
likely to receive, that increase of capital requisite 
to enable it to feed our whole population. Our 
commercial prosperity ebbs and flows, and confers 
great wealth on some ; and, while increasing the 
general welfare, leaves many who can depart for 
a wider sphere of activity than they have at 
home, and many who would go abroad were they 
able to afford it, in a worse position than before. 


The existence of the former class explains why 
emigration is more active in prosperous times, and 
of the latter suggests the necessity of something 
being done by the state for their benefit. The good 
cultivatable land of the British colonies is un- 
limited. The certainty of arriving at a moderate 
competence, and the probability of reaching con- 
siderable wealth, in the British colonies are 
unquestionable. For example, we have only 
78,000,000 acres of cultivatable land in the 
United Kingdom ; New South Wales has more 
than 800,000,000 acres. We have a population 
of 34,000,000 ; New South Wales has 600,000. 
Again, the area of cultivation in Australia is 
10,000 square miles out of a total of 3,000,000 
acres, and in the Cape of Good Hope there are 
1,000 square miles out of a total of 1,000,000 acres. 
I have thus indicated the object and the means I 
have in view in pressing upon you the import- 
ance of emigration to relieve the labour market 
when overstocked at home. In the absence of 
more efficient means than exist at present, I 
think that, for carrying out that object, a regular 
system of state emigration to the British colonies 
at the expense of the nation is absolutely 
essential. Such a national system would involve 
the choice of an appropriate situation, and of 
funds to carry on operations in the new home of 
the emigrants till they were able to maintain 
themselves. How far my object can be carried 
out by private associations, maintained at the 
cost of wealthy citizens of the mother country, or 
of the colonies, I leave the rich and the benevo- 
lent to decide for themselves. What I do know 


is this : If any one says I am advocating a 
system of pauper relief, I beg leave to say 
that relief to the needy to enable them to help 
themselves is far better and more economical 
than to sustain the destitute in perpetual poverty, 
and leave them an everlasting burden upon the 
industrious portion of the community, and a 
curse to themselves and everybody connected 
with them. 

The truest system of political economy is to 
open up the means of employment and usefulness 
for all, and to guide the people towards that 
employment. Men, as well as bales of cotton, or 
machinery, have a real marketable value ; and, 
if they are induced to settle elsewhere than in 
our own colonies, we are very likely to be so 
much the poorer by the loss of their service. 

The commercial policy of the empire should 
be uniform. For my part, I see no reason for a 
different commercial policy by us as regards the 
colonies, or by the colonies as regards us, than I 
do as regards the commercial relations of 
England, Scotland, and Ireland. 

Free trade should be the commercial policy 
adopted by the colonies as well as maintained 
by ourselves. We have gained immeasurably 
by the adoption of and adherence to that policy, 
and the colonies would reap as great benefits 
from the adoption of the policy of free trade as 
we have done. 

The defence of the colonies is a pressing 
necessity, and cannot safely be neglected, or left 
in its present condition. Defence against what ? 
Not against internal disorder, not against one 


another, not ;ir;iinst the mother countiy. But 
against the possible aggressions of the external 
foes of the empire at large. The responsibility 
of the mother countiy to maintain its full rights 
in every quarter of the globe, where its rights 
are endangered, or its subjects ill treated, or its 
general policy thwarted by ignorance, envy, 
malice, or covetousness, is great, is greater than 
is generally supposed. Yet the British nation 
can allow no act of injustice to be perpetrated 
against its honour, or against its meanest citizen, 
in any part of the world. How is this exalted, 
this grand, this beneficent policy, to be executed ? 
By our army alone ? No. By our naval power 
alone ? No. But by the truthfulness, the justice, 
the fairness of our demands ; and by the resolution 
and energy with which the national policy is 
supported by the whole of a great, free, and 
energetic people. Let us not neglect the art of 
war, nor the qualities which enable us to main- 
tain our rights ; but let us, above all things, 
remain steadfast in those firm, just, and equitable 
principles, which we have received from our 
ancestors, and which have made our country the 
home of freedom, and the centre of the commerce 
of the world. 

How are we most effectually to do so ? By 
a wise and prudent forethought as to our rights 
and duties. We are supreme at sea. But 
some dire calamity might, in a moment, over- 
whelm our fleet with destruction, or some point 
in the general line of defence might be neglected 
and seized by the enemy ; and thus our own 
homes, and all our colonies, might fall as 


speedily, and, for a time at least, and perhaps 
for ever, as the power of Spain on the destruction 
of the Armada, or of the Dutch on the capture 
of St Eustatius. 

A power in possession of Sydney, or New- 
castle, and also of King George's Sound, would, 
I believe, hold the whole of the continent of 
Australia in its iron grasp. Mare Island, used 
as an arsenal of the United States, is 6,400 miles 
from Sydney ; and Vladivostock, a Russian base 
of operations in the North Pacific, is 5,000 miles 
from Sydney. What do these two facts warn us 
to do ? Prepare for war against the United 
States or Russia ? Not at all. They show us 
if you will examine the map that Vladi- 
vostock is 8,000 miles, and Mare Island 7,000 
miles, nearer Sydney than Plymouth ; and also 
that, in the event of our being suddenly involved 
in war with either of those powers, we would be 
placed at a great disadvantage in defending our 
Australian possessions. Since the Crimean war, 
in 1854, Russia has advanced her military forces 
not less than 3,000 miles nearer our possessions 
in Australia. Widely-extended empire has its 
advantages, but it also has numerous and heavy 
responsibilities. To allow the colonial harbours, 
which afford the best foothold for our trade and 
commerce, to be taken out of our hands would 
be an irreparable national disaster which cannot 
be exaggerated ; and to allow them to remain in 
the hands of another power would very much 
diminish our external trade and commerce. 

Those who think we live in or near the age 
of universal peace are living in a fool's paradise. 


Those who think we have nothing whatever to 
fear from the quarrels of European nations would 
do well to study the history of Europe for the 
last century, and the true significance to be 
attached to the vast armaments in France and 
Germany, Austria and Russia. Those who think 
we can afford to be indifferent to what is pass- 
ing around us in the neighbourhood of our own 
possessions are blind, blind guides, and are cer- 
tain to land into the ditch all who trust in them, 
and to inflict some terrible calamity, some in- 
famous disgrace upon our name and character. 
Unless the whole power of this country, material 
as well as moral, is clearly and unequivocally 
placed on the side of general peace, I look for- 
ward to a great European conflict, at no distant 
period, as an absolute certainty. 

Federation was the last point to which I was 
to call your attention on the present occasion. 
I have already partially dealt with this subject; 
and, in so far as they fall into natural groups, the 
proposal to join the colonies into something like 
legislative unity, has my most entire approval 
and cordial sympathy. The confederation of 
which I have now to speak is a very different 
matter, and involves consequences of much greater 
moment than that of which I spoke at an earlier 
part of the evening. I am quite alive to the 
grandeur of imperial confederation ; but I have 
no faith in its fitness to contribute to the welfare 
and happiness of the people throughout Her 
Majesty's wide-spread dominions. Were the 
confederation of a legislative kind, in the same 
sense as the Union between the United King- 


dom of Great Britain and Ireland, the colonies 
must send representatives to both Houses of 
Parliament ; must send to this country, as their 
representatives, men who could not possibly be 
able to deal with our multifarious objects of par- 
liamentary concern ; must send representatives 
who would be utterly out of place, so far as prac- 
tical utility was concerned, in either House of 
the British Parliament ; and must find them- 
selves helplessly crushed by the overwhelming 
power of the representatives of the mother 
country. Whatever may be in the distant future, 
there does not appear to me to be, under present 
circumstances, the slightest advantage in at 
tempting to consolidate the empire by a legis- 
lative union of all its parts in one great Parlia- 
ment of the whole. 

Is there any other form of confederation ad- 
vocated ? Yes, there is another ; but, to my 
mind, it does not appear to be confederation at 
all. It consists of a Council, whose president 
would be the British Colonial Minister, and 
whose ordinary members would be representa- 
tives from all the different colonies. The pro- 
posal is utterly impracticable ; and, even though 
practicable, is utterly useless. On the first point, 
the colonies have not asked for any such council, 
and they could never agree as to the amount of 
representation each ought to have were it to be 
created. On the second point, as a consultative 
council, the whole advantages of the proposal 
are already obtained by the establishment in 
London of Residential Agents of all the great 
colonies, by the constant intercommunication 


which takes place between these agents and the 
Colonial Secretary, and by the easy access 
which every Residential Agent has to the 
members of both Houses of Parliament, and 
to the general public, with the view of 
bringing the demands or complaints of their 
constituents before the legislature of the United 
Kingdom, the press, the people at large, and the 
whole world. Further, and on the supposition 
that a deliberative council is intended to be con- 
stituted, I believe, that either the Colonial 
Secretary would become the mere puppet of such 
a council, or he would be the sole ruling spirit of 
such an assembly. In the former case, the affairs 
of the empire would suffer ; and, in the latter, 
the council is unnecessary. 

Gentlemen, the rapid growth of the British 
colonies is something wonderful, and is un- 
paralleled in the history of the world. Let us 
give full scope and freedom to this growth. Let 
the colonies expand, in their own way, as much 
as possible. Let us avoid all attempts to restrain 
them in the swaddling clothes of infancy ; but 
let us give them, as our favourite offspring, all 
the advantages, as far as we can, of our experi- 
ence, our enterprise, and our wealth. Let 
us encourage emigration to our own colonies 
rather than to other countries. Let us, in a 
firm yet kindly spirit, do all we can to 
encourage our fellow-subjects in the colonies to 
become great, powerful, and free as we ourselves 
have become great, powerful, and free. Let 
us establish a full and complete line of de- 
fence for our whole empire in a broad and 


prudent spirit, and capable of resisting all the 
possible contingencies of the present century at 
least. Let us encourage all our colonies to 
walk in the footsteps of equal freedom and just 
laws. Let us urge upon them to join in such 
groups as their position, necessities, and 
common interests demand. Finally, let us, at 
all times, in all seasons, and in all parts of the 
world, be prepared to act our part as the parent 
state of a fraternity of free, independent, self- 
governing communities, which do not require 
confederation in order to be placed on a footing 
of political equality, but already enjoy all the 
advantages of such equality as integral parts 
of the British empire, united together in the 
strongest of all unions, namely, of a common 
origin, common language, and common interest. 



















ecretaru of <State for Inbin. 


Having attentively watched the course of recent 
events in the East, I, sometime ago, resolved to give my fellow 
townsmen in Dun.dee a brief outline of the External Eelations 
and Internal Condition of British India. I accordingly 
delivered the Speeches contained in the following pages. How 
far some of my views, enunciated several months ago, are in 
harmony with the Foreign Indian policy of Her Majesty's 
Government will easily be seen by aD, who take the trouble to 
to compare my first Speech with the latest information com- 
municated to Parliament, without the necessity of my pointing 
out the coincidences, or the discrepancies. Where there is 
discrepancy, I naturally feel sceptical about my own opinion ; 
where there is coincidence, I naturally feel confidence in my 
own conclusion : because Her Majesty's Government are, 
beyond all doubt, in a far better position to arrive at a just 
and prudent determination than any private individual can 
possibly be. 


For the great favour your Lordship has conferred upon me 
by kindly acceding to my request that my two Speeches might 
be dedicated to your Lordship, I beg to tender you my most 
sincere and hearty thanks. Allow me, however, to avail myself 
of this opportunity to state, as in honour I am bound to do, 
that your Lordship is in no way, and ought not to be held, 
responsible for a single statement or opinion expressed in this 
pamphlet. I make this timely, although perhaps unnecessary 
acknowledgment, lest your Lordship should be accused of 
opinions which ought to be solely imputed to me. 

Thoroughly convinced that impartial history will approve 
of the Eastern policy of Her Majesty's Ministers, and that 
none of your predecessors in the high office you now hold 
hold with the approbation of the country at large ever took 
a deeper interest in the welfare and prosperity of British India 
than your Lordship, 

I have the honour to be, 

Your most obedient servant, 


22nd August 1879: 



Pages 1 to 39. 

Europe has passed through critical period. Late war closed by 
International Treaty of Berlin. Intimate relations between Dundee 
and India. Unless Ottoman Government reformed, momentous changes 
impending. Britain must have future policy clearly defined. She 
is determined to defend India. External danger to India from 
Russia alone. Britain must defend freedom of trade and navigation 
and maritime supremacy, guard interests in Egypt, and promote good 
government in Asia. Reasons for acquiring Cyprus. Asia-Minor 
important to us in regard to sympathetic influences, and to overland 
route to India. Britain's duties under Anglo-Turkish Convention. 
Nature of tribes in Central Asia, and of their territories. Russia's 
advance in Central Asia should not alarm us, but should be 
attentively watched. India impregnable except on North-west 
Provinces. Past measures adopted against dangers of British and 
Russian territories being coterminous in Asia have failed. Nature 
of tribes and territories on North frontier. Four phases of British 
policy towards Afghanistan. Attitude towards Sheri Ali condemned. 
Vindication of late Afghan war. General principles for a peace 
with Afghanistan. British policy towards Persia expensive, and 
doubtful in results. Persia will probably be absorbed by Russia. 
Burmah causing excitement, but does not call for British inter- 
vention. Further annexation of Burmah should not be encouraged. 
Duty .>!' r.ritain u> wards India. 



r<t0eg 41 to 85. 

Statistics of India and different Provinces. Sanitary Improve- 
ments. Condition of people of India. National system of 
Education. Indian Press. Missionary enterprise. Government 
Officials. Local Government. Military forces, cost, and reduc- 
tion. Finances. Indian Communications. Land Revenue of Pro- 
vinces. Salt monopoly. Opium monopoly. Loss by exchange. 
Administration of Justice, Agricultural produce, food, cotton, jute, 
rhea, silk, tea, coffee. Irrigation. Trade and Commerce. Cotton 
exports and trade, seed, rice, jute and jute trade, tea, wheat, 
coffee. Suez Canal. Indian trade might be developed in Afghan- 
istan, Turkestan, and Tibet. Policy advocated towards India. 





No one, who, for the last two or three years, 
has attentively watched the course of events in the 
East, can deny that Europe has passed through a very 
critical period of its history. Indeed, since the revolt 
of the Bosnians and Herzegovinians against the 
Ottoman rule, and still more since the Czar declared 
war against the Sultan in 1876, the peace of the 
whole of Europe has, several times, trembled in the 
balance, and the greater part of the civilized world 
has been on the brink of a frightful and gigantic war. 
The truth is that Russia has long been intriguing to 
paralyse our influence in European and Asiatic Turkey, 
and on the shores of the Mediterranean ; and in 
executing her schemes, she has been availing herself 
of her influence in Central Asia in such a manner as to 
demand our most serious attention. We must, there- 
fore, keep our eyes open as to what is happening in 


Europe and in Asia. Since Russia became mistress 
of Georgia, she has had the keys of Armenia 
in her hands, and, with the keys of Armenia, the 
sources of the Tigris and the Euphrates, which open 
up Turkey in Asia to the blighting influence of her 
spurious humanitarianism. With Roumania and the 
new Bulgarian State under her power, the next great 
effort of Russia will be the expulsion of the Ottoman race 
as rulers from European Turkey ; and with her frontiers 
continually approaching nearer and nearer the ter- 
ritories of British India, we have, at no distant period, 
the certain prospect of being called upon to settle, for 
some generations, what is to be the form of govern- 
ment, and who are to be the rulers, at Constantinople 
and its surrounding territory, and what the future 
relations and possessions of Russia and Britain in 
Asiatic Turkey and Central Asia. At the present 
moment, no two powers in Europe can be said, in the 
proper sense of the word, to be allies. The interests 
of the great Western Powers in the future govern- 
ment of European Turkey or Asiatic Turkey are 
by no means identical ; and those of Asiatic Turkey 
and of Central Asia are almost exclusively Russian 
and British. We must, therefore, as of old, be pre- 
pared to look after our own affairs ; and, if necessary, 
to defend the interests of the British Empire. 

Happily, by the efforts of European statesmen, 
the deplorable and calamitous effects of war, for 
the present, have been confined to the Turks and 
the Slavs. Happily, the interests of the contending 
parties, and of Europe in general, have been definitely 
settled by an international treaty, which, whatever its 
imperfections, will, at all events, secure the peace of 


Europe for some years to come. At several important 
junctures during the recent war, I thought it my duty 
to express my views in a public manner upon the late 
war as regards our own and European interests ; and 
I am glad to know that my humble efforts to keep the 
real questions involved clearly before the minds of some 
of my former fellow townsmen have not been altogether 
useless. The time has now arrived, as it seems to me, 
to lay before you some information as to the external 
relations of that mighty Eastern Empire which has 
had, and must always have, no small effect in defining 
our foreign policy, and in determining our attitude 
towards both of the parties lately carrying on 
war against one another. The general ignorance 
which exists in our midst on Indian affairs will doubt- 
less extenuate, if not excuse, my well - meant 
efforts to do something to dispel misapprehensions 
which might lead to grave consequences, and might 
ultimately compel us to make a stupendous effort to 
repel the open or insidious attacks of an astute foe, 
or to maintain our supremacy in India against internal 

Considering the intimate commercial relations 
between this great and industrious town and India, 
the source whence you obtain the raw material for 
your great staple trade, and considering the great 
interests involved in our national connection with 
India, I am justified in asking your serious attention 
to that part of my subject upon which I am to 
speak to you on this occasion. My subject falls 
naturally into two portions namely, the external 
relations of our Indian Empire ; and secondly, the 
internal relations. To-night, I have to ask your kind 


attention to the first portion, and, on a subsequent 
occasion, I hope to have the honour of addressing you 
on the second. 

While I am firmly persuaded that the Treaty 
of Berlin will be carried into execution, I have not 
the slightest doubt that momentous changes as 
to the Ottoman Empire are hidden in the womb 
of futurity. Turkey has got her last chance of setting 
her house in order. She has lost many large and 
rich provinces, and her power as a great and en- 
during empire is seriously endangered. She is upheld 
by the bayonets of foreign powers, and her hereditary 
foe will renew his intrigues to effect her downfall. 
Permanently to retain the Turkish Sultan at Con- 
stantinople is an utter impossibility, and, sooner or 
later, the Mohammedan ruler must give way to a 
Christian sovereign, seated on the throne in the great 
city on the Bosphorus. But, whatever may happen 
in the future, the great Western Powers of Europe 
will oppose, and, if need be, the powerful countries 
of Austro- Hungary and Britain will prevent, by all 
means at their command, the conquest of Constan- 
tinople and the surrounding territory by the Russian 
people. The opinions of the great statesmen of 
Western Europe are almost unanimously in favour 
of this view, and have been endorsed by the several 
countries which sent representatives to Berlin to bring 
about a peace on a European basis. Diverse as the 
interests of the different European States were as 
regards the so-called Eastern Question, there is not the 
shadow of a doubt that, if Russia had obtained pos- 
session of the Turkish capital, and had insisted upon 
the full rights of a conqueror, a great European war 


would have been inevitable, and the British and 
Austrian forces would have fought, side by side, on 
behalf of the Ottoman empire, till victory crowned 
their efforts in defence of their 'own interests, and 
of the interests of Western civilization, and of 
the world at large. On this point, there ought 
to be no room for doubt or mistake. To be under 
any misapprehension on this subject may lead to 
grave disasters and terrible calamities. Observe to 
what the permanent conquest of Constantinople by 
the Czar would necessarily lead. As regards Austria, 
it would raise the ambitious aspirations of Pansclavonic 
dreamers, endangering the stability of the Austro-Hun- 
garian monarchy. Do you imagine that the statesmen 
of Austria would calmly allow these aspirations to be 
realised ? As regards ourselves, it would place Russia 
in a situation to control our passage to India by the 
Suez Canal, and to extend her dominion over Asia- 
Minor, and to hold possession of one of the great 
highways, and, perhaps, at no distant period, the 
most important and speediest approach, to our mighty 
Empire in the East. Do you suppose that any con- 
siderable body of our countrymen would have 
allowed such a position to be held by the only foreign 
power which, so far as human eye can foresee, can 
ever endanger our supremacy in our Indian dominions ? 
As regards the general interests of Western Europe, 
it would have brought a strong military, semi- 
barbarous people into the very heart of Europe, and 
would have led to pretensions as preposterous and 
absurd as they are wild and chimerical, and to contests 
which would have been as fierce, bloody, and destruc- 
tive as the wars carried on, in early times, by the 


barbarous hordes which arose to power on the ruins of 
the Roman Empire, and, for many generations, involved 
Europe in the most horrible cruelties, and the blackest 
midnight. Were these considerations likely to escape 
the most enlightened statesmen of our time ? 
Under such circumstances, Her Majesty's Ministers 
were wisely on the alert to prevent any possible 
danger arising against the British Empire ; 
and they would have been justly condemned 
to eternal infamy had they neglected to take 
precautionary measures for the defence of the 
high interests committed to their charge. How they 
have fulfilled their duty, future history will best show ; 
but, I believe, they richly deserve the honour and 
the confidence which the nation, as a whole, has be- 
stowed upon them. For the present, at all events, 
European interests need not further give us any cause 
for serious alarm. But, on the other hand, Asiatic 
interests must earnestly engage our attention, and to 
the consideration of these I now proceed. 

As to these matters, we must endeavour to reach 
ome clear and well-defined principles, and, at the 
same time, attempt to lay the foundations of a prudent, 
just, and yet flexible policy, in defence of our Indian 
dominions and our Indian fellow -subjects. 

My fundamental proposition is that we have 
undertaken the sovereignty of India, and are deter- 
mined to defend it. The sovereignty of India was not 
undertaken when, in 1876, the legislature authorised 
the Queen to assume the title of Empress of India in 
all matters directly concerned with the government of 
I India. It was taken in hand by the people of this 
I country as far back as 1773, when the greatness of the 


East Indian possessions compelled the British legisla- 
ture to interfere directly in the government of the East 
India Company's affairs as regards matters political. 
It has been, for more than a century, sanctioned by the 
clearly-defined and unequivocal action of the nation by 
its public acts, and, for long years, by the conduct of 
its responsible statesmen. It was finally and irrevo- 
cably undertaken when the possessions, jurisdiction, and 
authority of the East India Company passed into 
the hands of Her Majesty by an act of the British 
legislature in 1857. To change the nature of all these 
public acts is impossible ; and to attempt to do so 
would be the strongest possible evidence of the ap- 
proaching decrepitude of the British Empire. The 
power of ^^tajr^pr^ec^s^njiiaLfrom internal disorder 
and external aggression ; and I humbly believe that 
it is the umversaTwish and the fixed resolution of the 
people of this country to fulfil their obligations to India 
and its people. Nay more, I feel assured that, if, 
directly or indirectly, our power in Asia were to be 
assailed, the whole of Her Majesty's subjects would 
rally round the throne, and defend British India 
against any and every aggressor who attacked, or 
even menaced, or seriously threatened to endanger, 
our supremacy in Hindustan. 

But not only is our national reputation involved 
in our relations with India, we have large 
pecuniary and material interests in India, interests 
which we are not likely to be foolish enough to allow 
other people to manage for us. We have spent 
millions upon millions of money in securing our 
Empire in the East, in developing its trade, and in 
improving its communications. These sums are a 


portion of our national wealth, and to allow them to 
be under the control of any invader would be an 
instance of transcendental generosity of which the 
world has as yet never had any experience. 

We are told, it is true, that there is no one seek- 
ing to invade India or likely to do so ; and, if any 
attempts were made to invade it, disaster would 
necessarily befall our foes. I am convinced that, in 
the present generation, there is no known power 
capable of overthrowing our authority and dominion 
in India. But I am not prepared to believe that 
threats or feints may not be made by Russia, either 
for the purpose of keeping us in a state of alarm 
and agitation, or with the view of paralysing our in- 
fluence in the councils of Europe. Besides, Russia is 
the only great power which can really endanger our 
peace in the East ; and her rapid advance into Central 
Asia, her intrigues with the late Ameer of Afghanistan, 
and her recent efforts to strengthen her position in Asia- 
Minor, all go to prove the necessity of being on our 
guard against her in Asia. Our Indian Empire rests 
on a European basis. We would therefore be mad to 
close our eyes as to what is taking place in the Black 
Sea, on the Bosphorus. and in the Mediterranean. 
But we would be infatuated were we to overlook the 
long-cherished aspirations of a large and influential 
portion of the Russian people, who believe, and 
publicly assert, that any loss of our prestige in 
India would bring us face to face with a hostile Asiatic 
league with Russia at its head, and, at all hazards, 
are ready to make no inconsiderable sacrifices to 
endanger our position in the East, and are fully 
persuaded of the certain and inevitable victory of the 


mission of Holy Russia in Asia, and even within the 
principal dominions of British India. In Russia, 
there are large numbers of the people who look upon the 
fertile and extensive plains of India as a kind of pan i- 
dise, in which all the good things of this world 
are to be obtained by defeating the small British 
armies in India, and by taking possession of what to 
them would be a land flowing with milk and honey. 
Hitherto our main object has been to stop the progress 
of Russia in Europe, and uphold the Turkish Empire 
both in Europe and Asia as a barrier to Russia ; but, 
within the past few years, we have been roused into 
great activity by the rapid advances of Russia in the 
direction of Herat and Cabul, and we have now no other 
alternative than to allow Russia to hold Afghanistan, 
or to take political control of it ourselves. From 
1814 to 1830, we never dreamed of Russian interference 
in Indian affairs, but, for more than a quarter of a 
century, not a few have seen that, on a suitable 
occasion, such interference was not improbable. 

This state of things clearly points out what we 
ought to do. It shows us what our European interests 
involved are the maintenance of freedom of trade 
and navigation, and our maritime supremacy ; and 
that our Asiatic interests are bound up with the 
present and future destiny of the Ottoman Empire, 
and its subordinate dependency Egypt ; and with 
the happiness and prosperity of the inhabitants of 
Asia-Minor, Central Asia, Persia, and Afghanistan. 

As the freedom of trade and navigation depends 
upon, and has its life-blood from, our maritime su- 
premacy, I would merely observe that we must ever be 
ready to make great sacrifices for the purpose of 


keeping our naval forces in a perfect state of efficiency, 
and that thus, and thus alone, so long as the great 
continental powers maintain their huge armies, can we 
hope to be at peace, and in full possession of our wide- 
spread dominions, and our liberties both at home and 

As regards the maintenance of the Ottoman Em- 
pire, the Treaty of Berlin will sufficiently guard it 
from present serious hostile attacks ; and as regards 
Egypt, and its reckless ruler, we may trust to a French 
and British arrangement being sufficient to bring 
matters at Cairo to a satisfactory termination. Let us, 
therefore, see what are the direct effects of recent 
events in the East upon our affairs, and what effects 
they will probably have upon our future conduct. 

By our possession of Malta and Gibraltar, we have 
a predominating influence in the Mediterranean. 

What, then, were the reasons for acquiring posses- 
sion of the Island of Cyprus ? They were (1.) that, 
in the event of the Sultan being unable to pacify and 
rule his subjects in Asia-Minor in harmony with the 
enlightened views of Western Europe, he must give 
way to a power which can satisfy the requirements of 
justice and good policy ; and (2.) that the possession 
of Cyprus will greatly enable us to fulfil our obligations 
to the interesting peoples who occupy the countries 
which are on the border edges of the Mediterranean. 
Believing, as I do, that we have as much territory as 
we can well wish to hold, or hope to govern with 
success, I hope that the Sultan and his Ministers will 
be able to govern Asia-Minor to the entire satisfaction 
of Europe ; but, well knowing the weakness and 
corruption of the Ottoman Empire, I shall not be 

ITS i:\Ti.i;\.\L RBtATtOa 1 1 

surprised if the Sultan will, in the end, and before 
long, be obliged to confess that he has not the power 
to carry his wishes as to Asia-Minor into execution. 
In the meantime, our intervention cannot fail to be very 
useful to the Sultan, and afterwards, if his failure 
should be complete and acknowledged, cannot fail to 
be of vast service to us in the future government of 
Asia-Minor. Cyprus was not acquired by us on 
its own account. It was taken over by us in 
consequence of our fear that, at some future yet not 
distant period, we would be obliged to undertake 
the government of Asia-Minor. If this fear should 
turn out to be unfounded, Cyprus can be handed back 
to the Sultan, or some new arrangement can be made 
in regard to that Island, so as to secure its prosperity 
and future welfare. If, on the other hand, we are obliged 
to see to the welfare of 4#P=^Iifc^and its various 
peoples, we will, by our^^session oMJvprus, hold an 
advantageous situation/jjfmch will eila-lble us to act 
with more power and celerity than we could otherwise 
have done. Therefore, mose who object/to our occupa- 
tion of Cyprus on grouncn^&culiar to the Island itself, 
must raise their minds to amgher subject than the 
Island itself, and must endeavour to see its connection 
with our probable future relations to Armenia and the 
neighbouring country. In Asia-Minor, as in every 
part of the Turkish Empire, it is the duty of all the 
co-signatures of the Berlin Treaty to enforce security 
of person and property, the impartial administration 
of justice, and the abolition of unjust and irregular 
taxes. For this end, an effective police force, and a just 
administration of the laws already in force would have 
the most beneficial results throughout eveiy part of the 


Ottoman Empire. Moreover, as far as we can, we 
especially ought to advance the interests of free and 
constitutional government in Turkey, and above all 
things prevent Asia- Minor from falling into the 
hands of any despotic power. Our obligations under 
the Convention of June 1878 are clear and un- 
ambiguous. If the Sultan performs his duty to 
his Asiatic subjects, we are bound to aid him with all 
the strength of the national resources ; but, if he fail 
to do so, we must find some other means than the 
Ottoman power to obtain the primary rights of 
political union for the inhabitants of Asia-Minor. 

As regards India, the importance of Asia- Minor 
is twofold : 1st, Disturbances in Asia-Minor are apt to 
be propagated towards India, and dangerously to excite 
our fellow-subjects in our Eastern possessions ; and, 
2ndly, Asia-Minor affords great facilities for 
railway communication between India and this 
country, which must always be the centre of 
national policy and military power of our Indian 

On the first point, I need merely remind you of 
the subtle influences of alarm and panic so common 
amongst Eastern people, and of the invasions of 
Asia, originating from the neighbourhood of Asiatic 
Turkey of the invasions of Alexander the Great and 
of the Mohammedan conquerors, and, in later times, 
of the rapid southern advances of the Hussian people. 
The last war between Russia and Turkey having 
endangered the permanent existence of the Sultan's 
power in Europe, and the Asiatic provinces being 
hostile to Ottoman rule, we were brought face to 
face with the alternative of Russian conquest, or 


British supremacy, in Asia-Minor. Between these 
two, no other alternative, in a few years, would have 
been open to us. Which alternative, then, were we 
called upon to adopt ? Which alternative do you 
think ought to have been adopted ? Between British 
supremacy and Russian conquest, whether we 
consider the human rights involved, or the rights and 
capacity of the two greatest Asiatic nations to govern 
alien peoples, or the advantages to the peace of 
the world at large, I, at all events, have no difficulty 
in making my choice. As the friends of free and 
constitutional government throughout the world, we 
ought to guard against the possibility of Asia-Minor 
falling into the hands of a despotic sovereign, or a 
semi-barbarous people, alien to it in race, language, and 
religion, and we ought, by all lawful means, to 
do all we can to extend the inestimable advantages 
of free and enlightened government to this portion of 
the world, rich in natural resources, and full of 
highest promise to the welfare of the human race. 
Our position in India makes us deeply concerned in 
the happiness of the inhabitants of Asia- Minor ; and 
if, by a policy of selfish isolation, we neglect the duty 
which clearly devolves upon us in regard to them, 
we will be blind to our own highest interests, and will 
reap a bitter harvest for our weakness and pusillanimity. 
Our duties as to Asia-Minor do not arise from the Con- 
vention of June 1878. They spring from the nature of 
our Empire in India, and they are merely formulated, 
not originated, by that much maligned instrument. 

Let us not be alarmed at the supposed enormous ex- 
tent of our duties as they are disclosed before our eyes. 
What are they? To cause the rights of property to be 


respected, to enforce security of life and members, to see 
to the just administration of the laws, and to compel all 
unjust and irregular taxes to be abolished. Are these 
objects worthy of our Empire, worthy of our high 
character in the history of the world as leaders in the 
foremost ranks of civilization and progress ? Yes, 
they are highly worthy of us ; and, doubtless, when 
the time comes, if come it should, for the enforcement 
of these primary rights of mankind, no public man 
will refuse to lend a helping hand in the restoration 
of an industrious and peaceful people, in the 
development of the great capacities for trade, 
commerce, and agriculture of one of the most 
favoured places of the earth, and in the introduction 
of Western ideas and practices into that once happy 
and smiling region. 

With regard to the second point to which 
I referred, I have to say that, whatever may be 
the route which the future Asiatic Railway will 
take, whether the route by the Tigris and Euphrates 
or by some modifications of that course, Asia-Minor 
will be the territory from which it will start from the 
shores of the Mediterranean. Probably, before the end 
of the present century, the Cape and the Suez Canal 
routes to India may be abandoned as the main high- 
ways of our intercourse with India, and a great 
central Asiatic Railway will still further abridge the 
distance between ourselves and our great dependency 
in the East. If such a railway is to be undertaken, 
it will involve a vast outlay, must be national in its 
character, and must not be undertaken until after the 
fullest inquiry, and most ample consideration. With 
such high duties before us, with such mighty and 


beneficent works in contemplation, I believe that we 
have an ample defence for our recent conduct as 
regards Cyprus and Asia-Minor ; for, in thus defending 
the interests of our Indian Empire, we are not opposing, 
or acting in a hostile spirit to, the general interests of 
Europe, or of the world, but acting in the highest 
interests of civilization and of human progress. 

Let us now approach somewhat nearer the frontiers 
of India, and endeavour to get some idea of the con- 
dition of Central Asia. Here we come into contact 
with huge tracts of territory occupied by rude, 
barbarous, pastoral, warlike, and predatory hordes in 
a state of almost incessant conflict with each other, 
and frequently attacking and plundering the peaceful 
subjects and the caravans of civilized nations. The 
dangers of this condition of things are self-evident, and 
have compelled us to chastise the marauders, and in- 
duced Eussia to annex large tracts of Asiatic territory. 
With this territory, or these tribes, we have no desire 
to have any greater concern than we can help. By 
themselves those people can do us no serious harm ; 
and, at the utmost, can only compel us to maintain 
larger bodies of armed men than at present to watch 
and defend our frontiers, and protect our own subjects 
and merchandise from their hostile incursions. Still, 
we are deeply concerned in their absorption by any 
great, compact, and warlike European power. Russia 
is such a power, and no one, even slightly acquainted 
with the history of Central Asia for the last half 
century, and especially since the Crimean War, can 
iliil to observe that the advance of Russia into Central 
Asia has been great and incessant, and that the 
advantages which she has derived therefrom are 


extremely small. Her ostensible aims in Central 
Asia are to protect her ever advancing frontiers, and 
to establish commercial relations with the Asiatics. 
Her real aim is the reduction of Persia, and of all 
the tribes intermediate between her present 
boundaries and the British frontiers, and, if possible, 
to annex Merv and Herat. 

Now, with this condition of things before us, with 
this advance indubitably placed beyond the shadow 
of a doubt, I beg leave to say that I do not think the 
advance of Russia is likely, within any determinable 
period of time, to endanger our supremacy in India, 
nor do I look upon such advance with anything like 
alarm or disapprobation. I believe that a still further 
progress of Russia in Central Asia than at present 
will contribute to the civilization of that part 
of the world, and that, even although her 
territories were coterminous with our own, as sooner 
or later they certainly will be, we have no need to be 
afraid of her immediate proximity to our Indian 
Empire. But, let it be remembered, that this latter 
contingency is to be kept fully in sight with the object 
of enabling us to see what is our duty in regard to 
the safeguarding of our own possessions in the East. 
Let us, by all means, welcome Russia in her mission 
of civilization in Central Asia ; but do not let us be so 
blind to our own interests as to throw away the best 
and most effectual means to preserve the bonds of 
peace and goodwill between Russia and ourselves. 
To wish those engaged in a good work God-speed is a 
duty we owe to ourselves, our neighbours, and 
humanity. But to neglect measures of defence against 
almost certain perils is unwise and absurd. Russia 


still advances, and inevitably annexes the territory 
she conquers. The progress of Tamerlane and his 
barbarous hordes was swift and destructive, and 
speedily came to an end. That of Hussia is quite 
different. Russia does not advance her forces in 
Asiatic Turkey and Central Asia, overturning, 
plundering, or devastating the country, and then 
withdraws her forces. No, she retains her conquests, . 
introduces her own administrative machinery, her laws, 
and her civilization. 

Not desiring to weary you with details, let me 
simply ask you : What are the territorial results of 
her recent conquests ? The territory and tribes of the 
Caucasus have been subdued by Russia since the 
Treaty of Paris in 1856. The annexation of the 
Caucasus has opened the whole of the north of 
Persia, and the eastern provinces of Asiatic Turkey, to 
Russian invasion and Russian commerce. There has 
also been a great advance of the Russian frontier to 
the east of the Caspian Sea in the last twenty years. 
In Central Asia, the Russian conquests began in 1848, 
when Russian fortresses were erected in the heart of 
Kirghese Steppe, and the old Russian frontier was 
connected with the long-coveted line of the Jaxartes. 
So long as Russia remained on the north side of the 
Oxus, we had nothing to fear, nothing of which to 
complain ; but this new condition of things brought 
her into contact with the three Khanates of Bokhara 
Khiva, and Kashgar. Our relative positions were thence 
entirely changed. The march on Khiva in 1873 gave 
rise to much distrust, annoyance, and alarm in India 
and in this country ; and, as it was evidently part 
of a general scheme, the explanations offered to us 


by the Russian Government were not believed 
by those who best knew Russian statesmen, 
their plans, and even their necessities. The Russian 
scheme was believed to be, and I believe was, 
to advance to Khiva, then to Merv, and then to 
Herat. Khiva has been vanquished ; will Merv and 
Herat fall under a similar fate ? The former stands 
in an oasis of the desert, is of great consequence from 
a strategical point of view, and is inhabited by a 
numerous and brave race of mountaineers, who might 
be converted into a powerful cavalry force. It is 
situated amidst steppes and sandy deserts, and is 
defended by several hamlets, whence an invader 
will find his advance extremely tedious and 
dangerous. From this region, the brave but barbarous 
Tekinze direct their hostile forays, by crossing the 
Oxus in boats, and plundering the territory of Khiva 
and Bokhara, and sometimes bursting into the fair 
and rich Persian province of Korasan. The Tekinze 
are cattle lifters and men-stealers, and all attempts 
hitherto made by the Russians, or Persians, to punish 
them have disastrously failed. Other and greater 
attempts will soon be made ; and, if successful, will 
speedily bring Russia to the border edges of Afghan- 
istan. To oppose Russia in punishing those robbers 
would be unjustifiable ; and to oppose her in annex- 
ing their territory, I believe, unwise. But, with the 
conquest of Merv clearly before our eyes a conquest 
which will give Russia full control over the whole of 
the Turkoman tribes, whose territories extend along 
the frontiers of Afghanistan, from Kojah Saleh on the 
Oxus to the Persian frontier we must have Herat 
completely under our control. With that town 

ITS I:\TI;I;V\L i;i;i. \T1ONS. 19 

in our possession, or in the hands of a faithful nlly, 
we can ;t to look upon the Russi.-.n annexation 
of Merv with supreme indifference. Herat is, by its 
position, the north-western key oi" Afghanistan ; and 
to prevent it from falling into the hands of Russia is, 
I believe, all that we need attempt to do. In our 
arrangements with Afghanistan, when peace comes to 
be made, Herat must be placed at our disposal. Let 
us make no mistake on this point. Herat is the key 
of Cabul, and Cabul of India. 

How far, in what way, and when, the Russian 
plans will be worked out is uncertain ; but how far 
we should be prepared for every contingency 
ought not to be doubtful. Russian conquests 
in Central Asia have not been so easy or rapid 
during the last twenty years as formerly. 
Still, they have been considerable, are all of them in 
the direction of British India, and Russian forts have 
been erected at all the most important strategic 
points to protect the newly acquired territory, and 
will, of course, if necessary, be made the basis of future 
hostile operations. As I have said, the march on Khiva 
gave rise to alarm and distrust. Explanations were 
asked, given, and disbelieved. No annexation, we 
were told, was contemplated, and yet, all the same, 
annexation took place. Before long, the same or 
similar things will be done in the same region. Let 
us neither be deceived nor alarmed, nor caught unpre- 
pared. We must be prepared with some clear, 
well-defined plan, and unhesitatingly act upon it. 
A beggarly policy of temporary expediency is 
unworthy of our country, is unsuitable to our 
Indian Empire, and will, if persisted in, end in 


disaster and disgrace. We must guard against the 
coming danger being exaggerated, and also against 
measures of defence being adopted on sudden im- 
pulses. Thus, we must very soon determine where 
our permanent frontier in Central Asia is to be fixed. 
Was it to be the Hindu Kush, or the Sufed Koh, 
the Suleiman range, and the mountains round about 
Quettah ? If the former, we must defend Herat 
and the Persian Gulf as strategic points of the utmost 
importance ; and, if the latter, we must fix our eyes 
somewhat nearer the present frontiers of British 
India, and defend Jellalabad, Candahar, and Quettah 
as the defensive outposts of our Indian Empire. This 
is a great problem, and can only be wisely solved by 
military and political considerations which demand 
the highest efforts of military genius and states- 
manship. The decision of such complicated matters 
by the popular voice, is one of the wildest fancies, 
which could possibly enter the most disordered brain. 
Our Indian dominions are impregnable, except on 
the north-west frontiers, which are situated close to 
the mountains through which India has been invaded 
from the earliest ages. In the Punjab, lying at the 
foot of these mountains, we have long had, and must 
always have, a considerable military force ready for 
any emergency ; and, at the points where the Kyber 
and Bolan passes open into the plains of the Punjab, 
strong outposts are placed to protect us from surprises, 
and from the predatory incursions of the neighbouring 
hill tribes. Burmah on the East can give us no cause 
for permanent alarm. Supreme at sea, possessor of 
the most powerful navy in the word, we need not fear 
invasion from the West or the South. 


To provide for the security of India against the 
probable dangers of the Asiatic territories of Britain 
and Russia being coterminous, various methods, 
which may, at the time, have been sufficient, have 
been adopted ; but, in the present condition of 
affairs, all of them have been, or must be, abandoned 
as unsuitable. 

The maintenance of the independence of the 
Khanates of Kashgar, Bokhara, and Khiva was one of 
those methods. It has utterly broken down, and 
these three Khanates are under the authority and 
dominion of Russia. Nothing else could have been 
expected. In Central Asia, the causes for war 
between rude and uncivilized tribes and a strong, 
energetic European power are inevitable, and annexa- 
tion follows as certainly as daybreak emerges out of 
the gloom and the blackness of midnight. Another 
favourite scheme with some of our Indian states- 
men, was the establishment of a neutral zone. The 
suggestion was somewhat rudely exposed, and its 
failure predicted by Russian statesmen and others ; 
but it was accepted by both parties for a time, and 
has since been cast into the limbo of past temporary 
and untenable expedients. Another favourite, and 
certainly more permanent plan, was the independence 
of Afghanistan. How it has crumbled to pieces is 
matter of history, and its destruction will be a necessary 
result of the present war between India and Afghan- 
istan. It will, however, be advantageous, and 
it is highly desirable that I should indicate the 
nature of the whole of our northern Asiatic frontier, 
and the character and strength of the tribes in 
that neighbourhood, and then trace the origin of 


recent events in Afghanistan, and inquire what must 
be our future policy in regard to that important 
frontier country of India. 

A group of Indo-Chinese tribes, with Chinese or 
Burmese affinities, forms a fringe round the Govern- 
ment of Bengal. It comprises Nepaul, Sikkim, 
Bhutan, Kuch Bahar, and the neighbouring hill 

The state of Nepaul lies among the deep ravines 
and ridges of the Himalayas, and is separated from the 
plains of India by a belt of pestiferous forest called 
the Terai Luckhimpur. An English-resident is 
settled at Katmandu, but we have practically little 
influence over this frontier kingdom. On the eastern 
border of Nepaul is the small Himalayan state of Sik- 
kim, which lies under the shadow of the loftiest moun- 
tain peaks in the world. On the east of Sikkim is the 
state of Bhutan, where the mountains are inhabited by 
a turbulent race in close connection with Tibet, and the 
Bhuteas, and their frontier neighbours. Indeed, all 
the inhabitants from Bhutan to Burmah are 
wild and lawless tribes, who have been very 
difficult to manage. They have involved us in many 
petty wars, and sometimes serious contests ; and, 
although vanquished or driven back from their hostile 
raids of blood and plunder, have received money from 
us in lieu of the black-mail which they levied from 
the people whose persons or goods they seized in their 
predatory excursions. Mutual intercourse and an 
effective police force have here considerably advanced 
the interests of peace, and our own happiness. Left 
unknown in the obscure hills and jungles, there is no 
security against their raids ; but, when inter- 

ttfi !.\ I I ': . M- HI- 1 \ Tl>\>. 23 

course is established, these niuiint.-iiiieers soon become 
amenable to our authority. 

Next, the Afghan and Biloch tribes occupy the 
land beyond the Indus. These border tribes were 
long exceedingly troublesome ; and, until recently, 
have been a source of disquietude and anxiety to 
the Indian Government. Between 1849 and 1855 
there were fifteen expeditions against these robber 
tribes, and seven between 1856 and 1864. They 
occupied territories on our frontier from Kaghdn, at 
the north- west of Kashmir, to the confines of Sinde, 
extending to the length of about 800 miles. In 
the same region, are the Hasanzais, on the left 
bank of the Indus ; the Swats, the Momands, and 
the Afredis, and many other small yet brave clans. 
The Afredis occupy the territory in the neighbour- 
hood of the Kyber pass, are desperately 
fickle, treacherous, and cunning ; and, although 
long paid by us for keeping the Kyber 
pass open, have, on several occasions, cut our 
men to pieces. They are fine, tall, athletic high- 
landers, lean but muscular, with long gaunt faces, 
high noses and check bones, and dark com- 
plexions. The different clans are often at feud with 
each other, but some of them have always been our 
allies. The Waziris tribe is one of the largest and 
most important tribes on this frontier ; for it holds a 
pass through which much of the traffic between India 
and Central Asia is conveyed. It has 43,900 fighting 
men. The Waziris owed no allegiance at Cabul, and 
hold the Gomul pass, and other parts of the Suleiman 

The Biloch frontier tribes, further south, including 

24 or 11 INDIAN EMPIRE: 

the Kasranis, Bozdars, Khutraris, Kosahs, Lagharis, 
Gurchanis, Murris, and Bugtis, number about 130,000 
fighting men. These tribes are always, more or 
less, at enmity with each other, are very debased, and 
are often guilty of robbery and cattle stealing. 

As to Afghanistan, our policy has, in the 
present century, passed through four phases namely, 
supporting Persia against Afghanistan, maintaining 
the exiled Ameer Shah Soojah on the throne of 
Afghanistan against the wishes of the Afghan people, 
inactivity during the reigns of Mahmood and Sheri 
Ali, and declaring war against the latter. 

The first phase of our policy was eminently success- 
ful. It was adopted and carried out when our northern 
Indian frontier was the River Sutlege, and when the 
danger of an irruption into the Punjab was very con- 
siderable ; for then the Punjab was not conquered by 
us, and Afghanistan made pretensions to certain 
portions of Sinde. The next phase was one of blunder- 
ing and disaster, and ended by our army being cruelly 
and- treacherously butchered in 1842. One man 
alone escaped this terrible disaster ; and he, wearied, 
maimed, and almost dead, carried the sad tale of 
our miserable failures to our countrymen at Jellalabad. 
Afterwards, under the gallant and heroic Sale 
and Pollock, an army of retribution soon entered 
Cabul, took vengeance on the Afghans, destroyed a 
large portion of their capital city, and, subsequently 
withdrawing their forces into British India, left 
Afghanistan and her rulers to themselves. 

Thereafter, a period of indifference was the main 
characteristic of our Afghan policy. This lasted thirty 
years, and ended with the ultimatum sent by the 

ITS I:.\TI:I;\.\L i;i:i. \TI .\8. 25 

Viceroy of India to Sheri AH in 1879, demanding 
satisfaction for the insult cast upon the Indian 
Government by the Ameer's refusal to allow our friend- 
ly mission to proceed to Cabul to confer with him on 
matters of common and international interest. 

Previous to this insult upon our national honour, 
two attempts were made to bring about a cordial 
state of relations between the authorities of British 
India and the Ameer of Afghanistan. The results of 
these attempts are recorded in the British State 
papers as to the conferences at Amballa and Peshawar. 
The Amballa conference between the Viceroy and 
the Ameer appeared to be highly satisfactory ; but, 
after all, was really nothing more than a good 
illustration of the truth that the real intentions of 
an oriental Court are not to be discovered by the 
use of the glowing language of eulogium, but from 
the character of the actions of the Sovereign and his 
people. On the other hand, the conference at 
Peshawar plainly disclosed the real nature of the 
complaints and objects of the Ameer. His 
ambassador complained that we had interfered with 
his just rights over his son Yacoob Khan, and with 
the hill tribes lying between the Afghan and Indian 
frontiers. He was told every thing would be done 
to remove all just grounds of complaint, but that the 
sine qua non of the conference namely, the residence 
of a British Officer in Afghanistan must be first 
accepted, and that the British Government in India 
could no longer be satisfied, with the unreliable 
character of the information transmitted by the 
native British Agent at Cabul. The conference 
ended abortively, and both parties continued in the 


same condition of dissatisfaction, resentment, and 
distrust, in which they had been for some years 

We now approach the last or present phase 
of our Afghan policy. Under the influence of 
Russia, a storm had long been gathering in the 
East, and a war with Afghanistan became 
inevitable. As far back as 1870, letters had 
been addressed to the Ameer by Russian officers. 
When an explanation of this undoubted breach of a 
distinct understanding was demanded from the 
Russian Government at St. Petersburgh, all knowledge 
of such communications was denied, and when proof 
was adduced, a feeble effort was made to explain 
them on the ground of courtesy. Afghanistan had, by 
mutual consent, been placed by the supreme Govern- 
ments of Russia and Britain beyond the sphere of Rus- 
sian influence, and the explanation offered was in 
direct contradiction to the terms of the letters them- 
selves. Again, in 1875, preparations were made for 
sending a Russian Mission to Cabul ; and subsequently, 
in 1878, a Russian Mission, under the General of Samar- 
cand, reached the Afghan capital. The Ameer thought 
he had been meanly treated by the Indian Government ; 
he thirsted for revenge ; and, at a time when peace 
between Russia and this country was in great 
jeopardy, he ostentatiously received the Russian emis- 
saries, whose object was to gain the Ameer to the side 
of Russia in the event of hostilities between Russia 
and Britain. There was no longer room for a policy of 
procrastination. The Russian advance in Central 
Asia during the last quarter of a century, and the 
then critical state of European affairs, clothed the 


Ilnssian Mission with an importance which had never 
attached to any previous communications between 
Russia and Afghanistan. Inaction would have left 
Afghanistan as much under the influence of Russia 
as the Khanates of Central Asia. Afghan neutrality 
could no longer be depended upon. Our north-west 
frontier must, therefore, be secured against all possible 
attacks. Thus, we reach the justifiable object of the 
present war. It was to gain the control of the three 
great highways which connect Afghanistan with India. 
With these great highways in our possession, our 
Indian Empire is invulnerable from without. We 
have no wish to destroy the sovereignty of Afghan- 
istan ; but we must have a strong, just, and merciful 
government in Afghanistan under a wise and just 
prince, who will allow his foreign policy to be guided 
and determined by that of the British nation. Russi.-i . 
or Britain, must be supreme at Cabul ; and, in any 
future war with Russia, we must be prepared to 
defend India on the north from Russian attacks. 
Here was a serious juncture, which had to be met by 
boldness and great prudence, and met it was with 
becoming dignity by Her Majesty's Ministers. 

During the epoch embraced by the reign of 
Mahmood, who succeeded Shah Soojah, and of Sheri 
AH, who was Mahmood's successor, cordial relations 
can hardly be said to have ever existed between the 
Indian Government and the people of Afghanistan. 
The Afghan people bitterly resented the injuries 
inflicted on them by the British army of retribution ; 
and their princes and chiefs, usually treated with 
disdain by the British authorities in India, were not 
in a mood to accept assistance from us unless forced 


upon them, or to be inclined to help us in any way 
unless in a purely selfish spirit, that is to say, exclusively 
from the value they attached to our power, or to the 
benefits they were likely to receive from us, or the 
fears they entertained of an attack being made on 
the independence of their country either by Eussia 
or ourselves. As we all know, Sheri Ali became 
positively hostile to our country ; and, had we, last 
year, been involved in war with Russia, as we almost 
were, he would undoubtedly have become the ally of 
Eussia, and have endeavoured to create a diversion of 
our forces by making, or threatening to make, an 
incursion into our Indian territories. 

Our conduct towards Sheri Ali was blind, per- 
nicious, and indefensible. As soon as he was in full 
possession of the throne of Afghanistan, and had 
vanquished all his competitors for the Afghan crown, 
we ought to have made an offensive and defensive 
aliance with him, and, without injuring his sovereign 
rights, done all in our power morally, and, if need be, 
physically, to bring his subjects under his sovereign 
authority; or we ought to have left him entirely to 
himself, and given him no assistance whatever in the 
government of his kingdom, in his relations with foreign 
states, or in his pecuniary difficulties. We should 
either have taken up the position that his country was 
most important to our Indian Empire, and generously 
treated him as a useful ally ; or, that Afghanistan was 
of no consequence to us, and left him to make what 
alliances he pleased, and receive assistance from what 
sources he could. Instead of this, our policy was 
marked by fear, weakness, imbecility, and impru- 
dence. We gave him arms and money which were 


used against ourselves ; we treated his well-founded 
dread of Russia as the dream of an over-heated brain. 
He acted towards us in the day of possible danger 
exactly as might have been anticipated, and, accord- 
ingly, insulted us in the face of the world, and hoped 
to escape the recklessness of his conduct by the help of 
his Muscovite ally. Vain delusion! The ministers 
in power would not allow the national representatives 
to be treated with such contumely. The great body 
of the British people held that the condition of affairs in 
Afghanistan was no longer bearable. The British 
forces entered the enemy's country to compel satis- 
faction to be given for a shameful act of contumely 
inflicted on us, and in order to place our relations on a 
new basis, by which insecurity would be replaced by 
security, a chronic state of unfriendliness by a 
complete state of goodwill, indifference by active mea- 
sures against all foreign interference in Afghan affairs. 
We have thus arrived at the present condition of our 
relations with Afghanistan, and we have great 
hopes that we will soon enter upon another, and more 
satisfactory phase. 

The vindication and purpose of the present war 
with Afghanistan are well and truly expressed by the 
Viceroy in his address to the Princes of India at the 
commencement of the war. He said: "The supreme 
Government would be unworthy of the loyalty of its 
subjects, and its noble allies, were it unable, or unwill- 
ing, to punish an unprovoked insult, or effectually to 
protect from foreign menace the peace and prosperity 
which it was endeavouring to promote within its 
borders." The vindication of our national honour 
from the contumely of the late Ameer of Afghanistan, 


and the defence of our own territories and of our own 
subjects were the causes of the war, and indicate the 
principles upon which the war ought to be terminated. 
We are now happily in possession of all the 
important passes by which India has been invaded 
from the north, and from which we have the greatest 
cause to look for any future attempt at invasion. 
So far as these are required for defensive purposes, we 
will certainly keep them, and thus prevent them from 
falling into the hands of our enemies at any future 
time. We have also obtained possession of a large 
tract of territory in the Khost Valley, and we 
have already virtually annexed it to our territories 
by the military proclamation of the officer in com- 
mand in that district. How far, and to what extent, 
further annexation will take place is a question upon 
which I am not qualified to give any opinion. This 
is a matter which can be decided best of all by 
military men who are on the spot, who are intimately 
acquainted with the geography of those regions, with 
the inhabitants, their habits and condition, and who 
are well informed as to the past history and present 
aspirations of that part of the world, and conversant 
with the general policy of the supreme Government 
of India. Let me state, however, one or two prin- 
ciples which, I think, ought to guide the public 
authorities towards a right solution. We ought, 
above all things, to secure a government which 
will satisfy the wishes of the Afghan people. In the 
next place, we ought not to annex any more of the 
Afghan territories than will give ample security to 
our own frontiers. And, lastly, we must now put an 
end, once and for ever, to any foreign intervention by 


any foreign power in the national policy of Afghanistan. 
Good government, security of frontier, and non-inter- 
vention must be the essential conditions of our future 
policy in tli;tt w.-irlikc. dangerous, ;m<l hitherto hostile 
country. Beyond this, and outside of Afghanistan 
proper, and between Afghanistan .md British India, 
we must adopt a policy of conciliation and friendli- 
ness towards the Afredis, and other border races, 
who are almost wholly independent of the Prince of 
( ';it>ul, and we must do our utmost to wean them 
from their savage habits, and accustom them to the 
manners and practices of civilized nations. Unless 
we act in this spirit towards these border 
tribes, we will be involved in a perpetual state of 
warfare. We must be prepared to tame and civilize 
the wild tribes with whom our new, advanced outposts 
will bring us into contact. Acting thus, we will obtain 
peace on our own border, advance the cause of 
civilization, and be able to watch and guide the 
course of events so as to diminish every chance of war 
on our north-west frontier, and, at the very least, be 
prepared, if such a war is inevitable, to defend our- 
selves and our possessions with the greatest hopes of 
success. Let us hope that the present Afghan Wai- 
will be speedily brought to a safe, just, and honourable 

The relations of Persia to British India must 
now engage our attention. Upon these, all I 
luive here to say 'will be in answer to this question : 
What is the real abstract value of Persia to our 
Indian Empire? This question will be best 
answered by briefly considering what has taken 
place between British India and Persia, 


Our first connection with Persia began towards 
the end of last century. The Shah of Persia 
was then hostile to India, and he was subsidised 
by the East India Company in order to restrain the 
Ameer of Afghanistan from giving any assistance to 
Oude, with which the Company was then at war. 
In 1799, Futteh Ali Shah, accordingly, took the field 
to conquer Candahar and Herat, and reduce them to 
his power. The Shah's movements prevented the 
Afghan chief from following up his projected conquest 
of India, and the expulsion therefrom of the 
Feringese or English. India also indirectly felt the 
terrible throes of the first French Revolution ; and 
revolutionary France and conservative Britain were to 
be pitched against each other in battle array, and 
both, as will always happen, endeavoured to 
do each other as much harm as possible in order to 
obtain the victory. British prodigality gained the 
the day, and we, not France, secured Persia, 
for a time, as our ally. This happened when 
European menace against our Indian Empire was 
expected to arise in the Persian Gulf, at the instiga- 
tion of the French Republic, and not from the Russian 
Cossacks on the shores of the Caspian. But the time 
arrived when Persia gradually gave way before the 
arms of the Czar, who joined Mingrelia, Ganjeh, 
Sheki, Shirivan, and Korabagh to his territories, and 
totally defeated the Persians at Erivan in 
1804. The Shah soon afterwards refused to lend us 
any aid against Russia, and the French star, then 
allied to the Russian eagles, rose in the ascendant. 
This took place in 1807, and both the Home and the 
Indian authorities began to perceive the rising of a 

ns K\ I ERNAL RKt \TloN3. 

new danger. Whatever may be the specific direc- 
tions of the will of Peter the Great, there can be no 
possible doubt as to what was one of the great objects of 
the famous conference between Czar Alexander and the 
Emperor Napoleon at Tilsit. It was the division of 
the East between France and Russia. Moveover, 
that Napoleon seriously entertained the idea of 
contesting our Indian supremacy is beyond all doubt. 
He even innde some proposals, which turned out to 
be abortive, with the view of getting the authority 
of the Sultan and of the Shah to allow him to carry 
his army to India through Constantinople, Asia- 
Minor, and Persia. 

The British authorities in India, therefore, nego- 
tiated a preliminary treaty in 1809 with Persia for 
the purpose of settling our relations with the Shah and 
his people. This treaty lies at the bottom of all our 
relations with Persia. It imposes on India the 
burden of subsidising Persia with arms, ammunition, 
officers, and artificers to be employed against Russia, 
the supposed common enemy of both countries. It 
was adopted by Lord Minto as Governor-General of 
India. This was an entirely new attitude for us, in 
conjunction with Persia, to assume against Russia. 
Hitherto our relations with Persia had been based on 
two principal objects : the establishment of a counter- 
poise to the power of Afghanistan ; and, 2ndly, the 
neutralisation of French ambition in the councils of 
the Shah. Both objects, as you will easily perceive, 
had immediate reference to the defence of our Indian 
Empire. The English contingent in Persia was with- 
drawn in 1812, and the weakness of the Persian forces 
became apparent. Persia was seen to be utterly 


worthless, except with the guiding intelligence and 
physical power which naturally spring from the 
more hardy nations of the north, and from 
none more than ourselves, who are, on all 
hands, acknowledged to have the power, vigour, 
and talents of a conquering and ruling race. Another 
treaty was made, two years later, in 1814. It 
was abrogated by the Persian war of 1856, and its 
abrogation has facilitated the progress of Russia to 
Khiva, Kashgar, Bokhara, and Samarcund. Its main 
clauses were to this effect : Persia shall not allow any 
European army to proceed towards India ; Persia 
shall be subsidised by the British ; the spontaneous 
acts of Russia against Persia shall be considered as 
demonstrations against India. As I have said 
already, this treaty must be looked upon as abrogated 
by the war of 1856; but, I think it worthy of 
notice, that this treaty of 1814 still rules our general 
policy as regards Persia to this day. Thence spring 
the understanding with Russia as to the independence 
of Persia, and the maintenance of our military and 
naval station at the head of the Persia Gulf. 

In 1826, the utter worthlessness of the Persian 
forces against Russia was again disclosed, and we speedily 
negotiated a release from a subsidy which was absolutely 
thrown away. Russia, at that time, acted at the 
Court of Teheran with the most irritating and con- 
temptuous arrogance, and looked at the absorption of 
Persian territory north of the Arras as a question of 
time, and as absolutely essential to the geographical 
boundaries of her Empire. The Indian officials, at last, 
awoke to a sense of the utter worthlessness of Persia for 
defensive purposes connected with our Indian 


Empire, and saw, with panic and dismay, that their 
proteges, upon whom money, arms, ammunition, and 
instruction had been largely bestowed, were utterly 
helpless in the presence of the hostile attitude of 
Russia ; and, in a word, that Persia existed only at 
the will of her colossal northern neighbour. A panic 
was the result. Another panacea must be dis- 
covered for their misfortunes. Attention was, 
accordingly, directed to the territory lying between 
Persia and India. How this scheme has also failed, 
I have already had occasion to observe when speaking 
of Central Asia. 

Here, however, I may still further notice that the 
Khivan expedition of 1832, led by Persia, was the 
germ out of which sprang our first Afghan War. 
That Persia was instigated by Russia to undertake 
this movement is certain ; but what were the real 
motives for the expedition has been much doubted by 
historians. Whether Russia wished to urge Persia 
forward into Asia as her own pioneer, or simply to 
estrange British statesmen from Persian interests, 
the result is the same ; for Russia has gained the 
advantages of the plot, and doubtless intends to keep 
them to herself. 

Passing over the large supply of officers and men to 
Persia in 1832-3, and the motives which instigated the 
supply, I come to a very important event, which 
happened in 1834. In that year, diplomatic notes 
passed between Russia and tins country, that the 
integrity of the Persian Empire would be respected 
and maintained by them. What is the exact bind- 
ing force of diplomatic notes it is difficult to say, 
but I venture to doubt if the integrity of the 


Persian Empire will much longer exist. The main- 
tenance of the Shah's Empire is, I am afraid, practically 
under the power of Russia. Persia has long been 
upheld by the opposing pressures of her powerful 
neighbours. She is passive, not active, in her national 
life. She is periodically subjected to dangerous 
national convulsions. She is utterly deficient in 
moral confidence. She is, and has long been, verging 
on the decrepitude which precedes dissolution ; and 
Russia, or Britain, must eventually absorb her ter- 
ritories into their own. Which will absorb them ? 
As we do not wish them, the ancient monarchy of 
Persia will, by-and-bye, perhaps, before many years, 
disappear, and be incorporated as an indissoluble 
part of the territories of the Czar. Had we meant 
to oppose this result, we should have taken another 
course than we have done. How to protect our- 
selves against such a contingency has already been 
indicated, and will be most effectually secured by 
keeping our highways to the Mediterranean open, by 
maintaining our maritime rights in the Persian 
Gulf, by protecting our overland route to India 
by the Tigris and .the Euphrates, and by secur- 
ing the power and the friendship of the Afghans 
to ourselves. 

Before I conclude, let me say a few words as to 
Burmah, which lies on our eastern frontier. Its 
condition is at present exciting no inconsiderable 
degree of attention. Former wars with Burmah have 
given us her best provinces ; and entire annexation, 
although favoured by a large class in India and British 
Burmah, is not at all desirable from an Imperial point 
of view, which must comprehend the effects produced on 

tTB I:\TI. i;.v\i. I;I:L. \TIM.VS. 37 

our whole relations with other nations, particularly 
China and Russia. ;md with Burmah itself. We did 
not enforce our strict rights of war wjth Burmah in 1 826 
and 1852, because we did not find those rights advan- 
tageous to the Empire at large. The immediate cause 
of our present concern in Burmah arises from one of 
those deplorable massacres of the King's relations which 
occur on almost every accession to the throne. That 
frightful and abominable cruelties have been per- 
petrated by a Ruler who seems to be little else than 
a drunken madman, whose actions are the sport of 
scheming flatterers, whose chief object appears to 
be to rouse up this modern Caligula against the 
British Empire, in the vain and futile attempt of re- 
gaining the territories which were taken by us in the 
wars in which former Burmese Sovereigns were 
conquered, is too clear. As yet, the King's acts do 
not call for warlike interference from British India. 

How far the infatuated King of the Burmese 
Empire has been influenced by the tidings he has 
received of what has passed lately in Afghanistan, I 
am unable to say ; but not improbably the Afghan 
War and the Russian-Turkish War have not been 
without some influence upon his conduct. How little 
they ought to have influenced him, he will bitterly 
learn should he compel Lord Lytton to march 
against him. In the meantime, British forces have 
been sent to Rangoon, and these will doubtless 
help to allay any uneasiness in the minds of our 
Burmese fellow subjects, who are unquestionably 
entitled to our protection -from massacre, plunder, or 
any other injury to themselves, or their property. We 
may well hope and expect that the speedy despatch of 


those troops will have a tranquillising effect upon the 
young tyrant's warlike propensities ; and, although the 
Governments at home and in India have every con- 
fidence in the able resident at Rangoon, we cannot 
help feeling a high degree of satisfaction in the 
determination of the Home Government to allow no 
war to be undertaken against King Theebau, unless 
for purely defensive purposes, until the approval 
of the Home Government has been first of all 
obtained. We will guard and defend British Burmah 
at all hazards; but we will not easily be tempted 
to extend our territories at the expense of the 
Burmese people. If we are forced into a third 
Burmese War, annexation would inevitably be the 
result. We must have no more Burmese Wars after 
the next ; and, whatever may be our own loss by 
the annexation of Burmah to British India, the Burmese 
people, at all events, will have no cause to complain that 
their conquerors were ignorant of the rules of humanity, 
morality, justice, and mercy. Upon the wicked rulers 
alone, we must inflict summary and condign punish- 
ment ; upon the helpless and cruelly-treated subjects 
of the King, let us deal, according to our custom, with 
kindness, justice, and mercy, 

Gentlemen, I fear I have detained you too long. 
But, with so great a subject before me, I deeply feel 
that I have omitted many things which I ought to 
have noticed, and treated many much too briefly. 
Be that as it may, I must now bring my present dis- 
course to an end. 

Gentlemen, we have put down disorder, anarchy, 
and confusion in British India, and conferred upon all 
its diverse races the blessings of civil and religious 


freedom. British India is no longer the estate of a 
few British subjects. It is an integral portion of the 
British Empire. We are therefore bound to defend 
it from external aggression by all the strength of the 
Empire. Let us not be faithless to the high duty 
which devolves upon us by our connection with our 
great Indian dependency, whose history is intertwined 
with the grandest epochs of pur national existence. 
Let the Government of India and of Britain be laid on 
the firm basis of our common interests, rights, duties, 
and obligations, and on the eternal principles of justice, 
equity, and truth. Let us endeavour, by all the means 
in our power, to advance the best and highest interests 
of our Indian fellow-subjects. Acting thus, we will 
secure the happiness and prosperity of the people of 
India, and erect the most powerful bulwark, which 
human ingenuity can invent, for the defence of our 
mighty Empire in the East. 





I am sure I express the sentiments of 
all present when I say that I am glad to see my 
friend Colonel ALISON here this evening. He has, 
as you all know, taken up his headquarters in 
London; but he still keeps up his connection with 
the old town, in which he has so many friends. 
Knowing how ready he was to assist in any work, 
which promised to be useful to the community, I asked 
him to take the chair on this occasion, and at some 
personal inconvenience, he, at once, agreed to my 


Mr Chairman, Ladies and Gentlemen : In a former 
address, I confined myself to the foreign relations of 
British India. On this occasion, I propose to direct 
your attention to its internal progress and condition. 

British India comprehends a population exceeding 
240,000,000, composed of different races, who 
speak a great variety of languages, and are in 
very diverse stages of civilization. Not long ago, for 
example, infanticide and human sacrifices were not 
uncommon in many districts of India ; misgovernment 
reigned supreme in several states, which we have been 
obliged to annex ; and bands of armed robbers, such 
as the Pindaris, the filthy dross of a corrupted and 
savage people, ranged, with fire and sword, from one 
end of Malwa to the other. Of this huge population, 
the Hindu and Mohammedan elements are the most 
powerful. Of the total population of British India, 
190,000,000 are directly subject to our rule, and more 
than 50,000,000 are governed by native sovereigns, 
who acknowledge the British power as paramount in 
India. Some of the protected native states merely 
acknowledge our supremacy, some agree to act 
on our advice, and some pay tribute, or provide 
a contingent of soldiers in time of war. Several 
of the native states are large and prosperous 
kingdoms. Thus, the Nizam of the Deccan in the 
province of Bengal rules over a population of nearly 
11,000,000, has a territory of 95,000 square 
miles, and an army of 30,000 men. The total 
area of British India is 900,000,000 square miles, 
and of the native states 610,000 square miles. What 
an immense territory ! What a large population to 
be under the Government of such a numerically insig- 


niiicant people, whose most powerful centre is 
almost situated at the opposite end of the world 
from India itself! 

Till the census of India was nearly completed in 
1871, there was no accurate information as to the 
growth and rate of increase of the population, the 
sufficiency of the food supplies, the incidence of taxation, 
or the spread of education. The census has entirely 
changed the common ideas as to the population of 
British India its distribution in different regions, its 
races, arid its religions. 

In the provinces of Bengal, the population in 1871 
was close on 67,000,000, of whom 2,000,000 
belonged to the tributary states. The population of 
Calcutta was 447,000. Some parts of Bengal 
are amongst the most densely populated districts 
of the world. In the food producing area, the 
average density is not less than 650 souls per square 
mile, or one for every half acre. The country occupied 
by this swarming population exports grain in seasons 
yielding an ordinary crop ; but suffers the most ter- 
rible miseries when a single crop proves a failure. Of 
the population in Bengal, two-thirds are agriculturists ; 
and, in the central and eastern portions, one-half are 
Mohammedans; and, in some districts, the Moham- 
medan population largely predominates. These pro- 
vinces contain 21,000,000 Mohammedans, or more than 
any other country in the world, and they are probably 
on the increase. 

The census for the north-west provinces was 
taken in 1872, embraced an area of 81,400 
square miles, and gave the population as 
30,750,000. There were 378 inhabitants to the 


square mile. The densest district, exceeding any 
even in Bengal, was Benares, where there were 
797 souls to the square mile ; in Agra, 575 ; in 
Allahabad, 501. The vast majority of the 
inhabitants are Hindus. The latter are 
26,500,000 ; the Mohammedans fully 4,000,000 ; 
and the native Christians nearly 8,000. More 
than one -half of the Mohammedans live in 
the district of Rohilcand. They are called by the 
name of Sheikhs, or supposed descendants of Arab 
invaders of India a title generally assumed by 
all Mohammedans who do not come under the 
other three classes, namely, Saiads, Moghuls, and 
Pathans. Of the Hindu castes, the Brahmans number 
3,250,000, congregating chiefly in Benares, Allaha- 
bad, and Agra. The Nakurs, or Rajputs, number 
250,000; the Baniyas, 1,000,000; and thirty 
other inferior castes nearly 20,000,000. The agri- 
cultural population includes 56 per cent, of the 
whole. The inhabited villages number 90,600 ; 
and of the towns there are 204 with a population 
above 5,000, and 13 where the inhabitants 
exceed 50,000. Benares is the most populous 
city in these provinces, numbering 174,000 souls. 
Agra has 149,000 inhabitants, and Allahabad, 

The last census of the Punjab was taken in 1868, 
when the population was 17,500,000. It is now 
roughly estimated at 19,000,000, or 173 to the square 
mile. According to the last census of Oude, taken 
in 1869, the population was 11,250,000, or 459 to 
the square mile, 

The last census of the Central provinces was taken 

ITS PBOOBEBfi \M> <<>M'moN. 45 

in 1872, and proved the total population to be 
9,250,000, over an area of 113,800 square miles, or 
8 1 to each square mile, and showed a sparsely peopled 
region, with abundant room for future increase. 
The bulk of the population dwell in small scattered 
villages. Included in the total population of the 
Central provinces are 1,000,000 inhabitants under 
feudatory chiefs. The agriculturists form 64 
per cent, of the population, and about 2,000,000 are 
hill tribesmen. The Hindus are 71 per cent., the 
Mohammedans nearly 3 per cent, of the population, 
and the Christians are said to be 10,500. 

The last census of the Madras Presidency was 
taken in 1871, and gives the population as 
31,500,000. The most densely peopled district was the 
fertile, rice producing region of Tanjor, where there 
were 540 souls to the square mile. Then followed 
Malabar with 376, South Arcot with 360, and Trin- 
chinapolli with 341. Besides a few Uriyas in the 
northern extreme of Ganjam, the population is divided 
into four races, speaking branches of the Dravidian 
group of languages. In Kurnul, Kadassa, part of 
Balari and Nellor, are the Telugu speaking people, 
numbering 11,500,000. The Tamils, spread from a 
few miles north of Madras to Cape Comorin along the 
east coast, count 14,750,000 souls. The Kanarese, 
in part of Balari, Mysore, Coimbator, Salem, and 
North Kanara, number 1,500,000 and the Malaya- 
lum speaking people of Malabar, Cochin, and Travan- 
core number 2,250,000. The distribution of caste 
and religion in the Madras Presidency is particu- 
larly interesting, because it indicates the extent 
and relative completeness of the successive waves of 


invasion. For instance, the 1,000,000 Brahmans 
in the Presidency are chiefly found in the northern 
districts. The Chetties, or merchants, number 
714,000; the Vellala, or agricultural caste, count 
7,750,000, who acknowledge Siva, but worship their own 
village gods. There are 1,750,000 of the shepherd 
class, 750,000 of the artizan, 1,000,000 of the weaver, 
250,000 of the potter, and nearly 4,000,000 of the 
Vannia, or labouring caste. The outcasts, i.e. the 
Shanars, or toddy drawers in the far South, exceed 
1,500,000 and the Pariahs are 4,750,000. There are 
nearly 29,000,000 Hindus, or 92 per cent, of the whole 
population ; about 2,000,000 Mohammedans ; and 
490,300 native Christians, of whom 103,000 are 
natives of Tinnivelly. The Moplahs, who are in- 
dustrious but fanatical Mohammedans of Malabar, 
somewhat exceed 1,500,000. The population of the 
city of Madras in 1871 was 397,000. 

The census of the Presidency of Bombay was 
taken in 1872. The whole area, excluding native 
states, is 125,000 square miles, and the population 
16,250,000, or 131 to the square mile. About 76 per 
cent, of the population are Hindus, 17 per cent. 
Mohammedans, and nearly 4 per cent, aborigines. 
In Sinde alone is the majority of the population 
Mohammedan, being in the proportion of four to one. 
The population of the city of Bombay is 644,000, 
and therefore, with the exception of London, is the 
largest population in any city of the British Empire. 

The census of Mysore was taken in 1871, and 
gives the population as fully 5,000,000 or 187 to the 
square mile, of whom 4,800,000 are Hindus, 209,000 
Mohammedans, and 25,676 Christians, 


Of late sanitary improvements have been largely 
introduced into Indi;i. ;uid the effect of those mea- 
sures is wonderful; for, in a Ilcj.urt made to the Indian 
Secretary of State in 1872, the decrease of mortality in 
five years had been from 20,000 to 1 0,000 a year. "Yet 
if the facts are considered, this result is not surprising. 
Fifteen years ago, there was no drainage at Calcutta. 
The filth of the city rotted in the midst of the 
population in pestilential ditches, or floated backwards 
and forwards with every tide. The inhabitants drank 
the loathsome water of the river, which was not only 
the receptacle of filth, but the chief graveyard of 
the city, or else they resorted to the still filthier 
contents of shallow tanks. Now, Calcutta is drained, 
and possesses a water supply far better than that of 
London, and as good as that of Glasgow." I take 
this extract from the masterly Government Keport 
for 1872, and beg leave to make another from the same 
source : " The climate and sanitary condition of India 
give rise to pestilences, which periodically carry desola- 
tion over the country, while disease in its worst forms 
is never absent. Hospitals, richly endowed and 
admirably regulated, supported by Government as well 
as by private munificence, exist in the large towns ; 
and great efforts are constantly made to bring the 
benefits of medical skill and knowledge within the 
reach of the poorer classes." 

Much of the disease in India is due to bad water 
and bad drainage. As regards rural towns and 
villages, improvements must mainly be the work of 
the people themselves. In the cities of Madras and 
Calcutta, a new supply of water has had a marked 
influence on health ; and, in various directions, science, 


art, and experience are working wonders on the habits 
of the people. Fever is, by far, the most prolific 
cause of death in India ; and, unless cholera is raging, 
carries off more people to the grave than all other 
diseases and accidents put together. At least 
1,500, 000 die annuallyfrom fever, and one-half of them, 
it is said, might be saved by selling the febrifuge alka- 
loids, such as quinine or chinchonidine, to the people at a 
price within their reach. These fevers cause a great 
loss to the imperial treasury, diminish the value of 
land, and reduce the people to the utmost depths of 
misery and destitution. The cholera is very seldom 
absent from India, and is a terrible scourge to the 
people. Since vaccination has been rigidly enforced, 
smallpox has steadily decreased. 

An extraordinary feature of Indian life is the 
number of human beings destroyed by wild beasts. 
Death by snake bites is very frequent, and caused 
the death of nearly 15,000 persons in the year 
1869. Further, in 1871, the total deaths caused by 
dangerous animals of all classes amounted to 18,000. 
A systematic organised destruction of these wild 
animals these terrible enemies of India should be 
undertaken by the Government. 

I shall now attempt to give you some idea as 
to the actual condition of the Indian people, and 
the extent to which they enjoy life. 

The condition of the Bengal ryots is miserably 
abject, and shows much suffering and even a want of the 
absolute necessaries of life. In the North-west Provin- 
ces, the wages of the agricultural labourer have hardly 
varied since the early part of this century. These 
labourers only taste salt two or three times a week, and 


many of them live on a coarse grain called kesari, which 
is most unwholesome, and produces loin palsy. The 
small tenant farmers are hardly better off, except 
that they can have salt daily. This extreme poverty 
among the agricultural population makes any im- 
provement in farming and cultivation almost an 
impossibility. In the Bombay Presidency, wages are 
much higher than in the North-west Provinces. A 
skilled labourer receives from 2/- to 8d. a day, and 
an unskilled labourer from about 6d. to 3d. ; and the 
average price of exported husked rice in 1877 was 
about 6/6 per c wt. About half a century ago, an account 
of the labourers of the Bombay Presidency was given, 
and is still perfectly accurate as to their condition and 
mode of life. The clothes of a man cost about 12/- and 
the furniture of his house about 2 ; and his food 
consists, not of rice, but of dry grains, such as bajri 
and jawari, with pulses and salt. The people of 
Mysore and most of those in the Madras Presidency 
also live on dry grains and pulses. Throughout India, 
the cultivators receive advances from money lenders 
to carry on their farming operations, and, every now 
and again, rebel against the exorbitant demands of 
their oppressors. 

As regards the morals of the people, whatever 
may be said of those of the larger towns, those who live 
in villages are no better, and no worse, than the same 
classes elsewhere. As a rule, the people of British 
India are temperate, chaste, honest, peaceful, singularly 
docile, easily governed, and patient. Of course, there 
is as great variety of temperament and character as 
there is of physical appearance in the different latitudes 
over which our rule extends. 


Let me now ask your attention to the state of 
education in India. 

A complete system of national education for the 
people of India was inaugurated in 1854, and was in- 
tended to provide first-class education for the wealthier 
classes, and instruction for the great masses of the 
people. The language to be used as the medium of 
instruction was that which was alone understood by the 
people; the improved arts, the sciences, and the philo- 
sophy of Europe were to be widely diffused among 
them ; and the teaching of English was to be carefully 
combined with the study of the vernacular languages. 
More than 1,000,000 is spent on education by the 
imperial, provincial, and local governments. 

The whole machinery has been in admirable 
working order for several years, and a great and 
successful system of education has been developed 
in India, exactly on the principles laid down 
in 1854. For the higher education, universities 
have been established at Calcutta, Bombay, and 
Madras to test the qualifications of students, and 
grant degrees on the same plan as the University of 
London in arts, law, medicine, and civil engineering. 
The Indian Universities were incorporated in 1857 ; 
that is to say, were calmly founded in the regular 
way of routine during the worst times of the Mutiny, 
when our power was at its lowest ebb. This was 
conduct befitting us, and worthy of the great name 
we have in the world as conquerors and as rulers. 

Colleges are affiliated to the universities. Below 
them are Zillah, or middle-class schools, to prepare 
students for the colleges, and for the entrance exami- 
nations at the universities. " The high schools supply 

ITS I'KOMILSS AM; >M>111<>.\ j 1 

the candidates for the entrance examinations at the 
universities, and also furnish training for natives 
who seek employment in the higher grades of the 
civil service." The system has scholarships at- 
tached to it, by which the best pupils may be led up 
from the Zillah schools to the colleges, and thence to 
university degrees ; and grants in aid are given by 
Government to private schools. 

In the rural elementary schools, the vernacular is 
taught, and the course of instruction includes elemen- 
tary arithmetic, bazaar accounts, reading, and writing. 
" As the primary village schools supply instruction 
to the children of the poorer agricultural classes, so 
the middle-class schools provide for the education of 
the children of the shopkeepers and other dwellers 
in towns, and for that of the young men who fill the 
lower grades of the public service." Some provide 
instruction in English, others teach only in the ver- 
nacular. These classes combine primary instruction 
with a higher standard in their upper classes. 

Female education receives much attention in all 
parts of British India. It is of the simplest kind, 
and a system has been organised at Calcutta for 
teaching hundreds of girls in the Zenanas, or private 
houses. But, as yet, there is no real demand for the 
education of women and girls among the natives. 
" Progress is very slow in all Eastern countries, and 
the dead slumber of ignorance still shrouds the women 
of India." 

Schools of art and museums, as powerful instru- 
ments in the spread of education, have been established 
at Calcutta, Madras, and Bombay. The first school 
of art in India was established in Madras in 1850. 


Another important influence is largely contri- 
buting to the intellectual movement which is 
making rapid marches in India. I mean the 
number and character of the published books and 
newspapers. Whether these Indian publications 
are considered as regards their number or their 
character, there is no room for doubt that they exer- 
cise very considerable power in India. Some of 
them treat the Government with great freedom ; 
and, although the native press is loyal, and 
frankly admits the advantages of British rule, it often 
contains acrimonious attacks on particular measures, 
and on the conduct and actions of individual officers 
of the Government. Last year, at a critical period, 
very extensive powers were conferred on the Viceroy, 
and the executive powers in India, for the suppression 
of publications issuing from the native press, and un- 
justifiably libelling the Government and its officers. 
I believe that, at the time, these measures were 
necessary ; but, seeing the crisis has passed away, I 
hope that the Government of India will abrogate its 
exceptional legislation as to the freedom of the native 
press, and leave the criticism of its conduct to the 
ordinary course of the common law. To allow public 
writers to poison the minds of the people is neither 
just nor prudent, but to put fetters on the free dis- 
cussion of public affairs is a dangerous remedy, and 
can only be justified, in a free country, by very excep- 
tional circumstances. 

Another subject, which has a most important bear- 
ing on the intellectual advancement of the people of 
India, namely, the missionary enterprise, deserves to 
be here noticed. 


In 1873, the Protestant missions of India, Burm.ili 
and Ceylon were carried on by 35 missionary societies 
in addition to local agencies, and employed the services 
of GOG foreign missionaries, of whom 551 were ordained. 
This large body, composed of various denominations of 
Christians, heartily co-operate with each other in all 
good works. ' ' Apart from their special duties as public 
preachers and pastors their printing presses, their male 
and female schools, and their training colleges are in a 
flourishing condition, and are effecting great changes 
amongst the natives of India." Within the last 
1 i,i If century, several religious movements have deeply 
affected the religious attitude of the natives of India, 
and have left powerful impressions in all directions 
throughout the Indian Empire, and especially on the 
populations of the rural districts rather than on those 
of the towns and cities. In the provinces of Tinne- 
velli and Travancore, where the aboriginal population 
has not been much affected by the Hinduism of 
Southern India, the Christian missionaries have exerted 
a powerful and lasting influence ; and amongst the Shan- 
nar tribes, and their kindred, the advance of Christianity 
has been most gratifying. Schools have been established 
for the people, and training schools for schoolmasters 
and native teachers. The districts of the Shannari 
are dotted over with flourishing villages and Christian 
churches, and there are hundreds of native teachers 
employed amongst them. Order and peace rule 
amongst these simple communities ; large tracts of 
country have been brought under cultivation ; and the 
peasantry generally enjoy a larger share of material 
comfort than in days gone by. 

The native Protestant converts exceed 250,000 ; 



the Roman Catholic native converts must be thrice that 
number ; and recent events show that the number of 
native Christians is greatly increasing. The benign 
influence of the Christian teachers, and of their people, 
cannot fail to strengthen and uphold the power of Bri- 
tain in India, and bestow on the people of India one of 
the greatest blessings which can be conferred on them. 

Let us approach another branch of our subject. 

Since the days of Pitt, the Government of India 
has been under the absolute control of the Government 
at home. In this country, the Secretary of State for 
India is entrusted with the direction of our diplomatic 
intercourse with the neighbouring foreign powers, and 
with all the dependent chiefs and princes of India. 
He is also the medium of communication between the 
Home Government and the Viceroy of India, and is 
the Minister responsible to Parliament for the Govern- 
ment of India. In India, the supreme Government is 
conducted by the Viceroy, who is Governor- General of 
Bengal, and by the Governors of the two Provinces of 
Bombay and Madras. Besides those three high offi- 
cials, there are the Lieutenant-Governors of Bengal, of 
the North-west Provinces, and of the Punjab, and 
also the Chief Commissioners of Mysore, of the Cen- 
tral Provinces, of Sinde, and of British Burmah. All 
the Governors, Lieutenant-Governors, and Commission- 
ers are more or less subordinate to the Viceroy of India. 
The three Governors of Bengal, Madras, and Bombay 
are assisted by legislative councils in making and 
amending laws for their several Presidencies. These 
legislative councils are composed of civil and military 
officers ; are appointed by the Government at home or 
in India ; and are not, in the least degree, responsible 

ITS PR<M,lM-:ss \\D CONDITION. 55 

to the people of IIK li.-i forthdiration& As yet, British 
India knows nothing of Constitutional Government. 
In the different Provinces directly under our rule, the 
functions of Government are entrusted to officials ap- 
pointed by thejparamount power; and, in the tributary 
and subordinate native states, the functions of Govern- 
ment are discharged by the native princes and their 
own officials, and the duty of superintendence alone 
belongs to the British Government. 

Lately, the principle of local self-government has 
been largely introduced into the public affairs of India, 
and, I am glad to say, with marked success. Local 
self-government in India has its origin, in modern 
times, from various legislative acts which have been 
passed since 1840 ; but it was not extensively applied 
till within recent times. Without doubt, it will be 
extended till the whole country is covered with a net- 
work of local self-governing bodies, which are the most 
effective instruments with which I am acquainted for 
the preservation of the lives, liberties, and estates of 
a nation. 

The local self-government of which I am speaking 
must not be confounded with the old village com- 
munities, which sprung into existence in the earliest 
ages of Hindu society, and of which I shall here give 
an example. "In the North-west Provinces, the 
village communities have only been partially pre- 
served ; but in the Punjab, including the Delhi district, 
all the village communities are very perfect, each with 
a cultivating body, and a complete internal system of 
management. Each man has land to correspond to 
his share of his own separate management, and the 
grazing ground is common to all. Certain sums were 


always set apart from the revenue for the remunera- 
tion of village officials." 

Thus, derived from ancient and modern times, 
we have the primary elements of the free insti- 
tutions which will be the best guarantees of good 
government in India in future ages, and which we 
ought to foster, strengthen, and develop to the utmost 
of our power. From this source will arise the repre- 
sentative government which, sooner or later, will exist 
in British India. Neither external foes, nor internal 
dissension, can stop the march of events in India to- 
wards a free system of Constitutional Government. 

But, let me here ask : What is the basis of our 
present power in India ? It is purely military. We 
must not deceive ourselves on this head. We have 
conquered India by the sword ; and, for a long time 
at least, we must maintain our authority in that 
mighty dependency by our own right hands, and 
by the prestige which belongs to our arms as the 
result of many hard-fought battles. 

The military force of British India ordinarily 
numbers 200,000, of whom two-thirds are native, and 
one-third British soldiers. Thus, in numbers, the 
native soldiers largely predominate over the British. 
Whether or not the present ratio between the British 
and native forces should be maintained is a difficult 
problem. Certain it is that, without our native Indian 
army, we could never have acquired our mighty Em- 
pire in the East ; nor, without its assistance, could 
we retain it for a year. To doubt the fidelity of 
our native Indian army is to doubt our power to rule. 

The cost of the Indian army was estimated for 
1878 at 17,000,000 sterling; and, for the 

ITS HIOUKKSS AM) ( <>M>ri H'.V 57 

present year, is put <lu\vn at 18,250,000, or 
nearly 1,250,000 greater than last year. How 
far this enormous sum can be safely reduced is 
a matter upon which I am not qualified to 
give an opinion ; but, even in times of absolute peace, 
there does not appear to be any reason to 
suppose that the ordinary cost of the Indian 
army can, for the future, be estimated at less 
than 15,000,000. We must bear in mind the 
wide distances of the points liable to attack 
from without, and also the large armies kept up by 
the native princes. Of the defence of our Indian 
frontiers, I do not intend to say anything here ; but, 
when I tell you that there are 300,000 native forces 
scattered through the subordinate native states of 
India, you will, at once, perceive that the reduction 
of the Imperial army is not such a simple matter as 
some would appear to imagine. 

Till the armies of the native princes are greatly 
reduced, or, in some way, absorbed in the British 
army, there is not much chance of the Imperial 
army being reduced below the ordinary peace 
footing, which, in consequence of our success in 
Afghanistan, will soon be attained. 

The great expense of our Indian army was the 
subject of severe animadversion by Mr. John Bright 
in London last week. He looked upon it as sufficient 
to show that our government of India was an absolute 
failure. With all submission, I do not agree with 
him in his sweeping condemnation, or in the opinions 
he expressed as the necessary consequences to 
which he was led. To give up India would be to 
involve our Indian fellow-subjects in the wildest 


anarchy and confusion, and would inevitably lead 
to its absorption by some great European power. 
I, for one, am not prepared for this result ; nor, as I 
think, are you, nor any great portion of the British 
people. Strange that such a great man, as Mr Bright 
undoubtedly is, should be so completely led astray 
by pecuniary results, and should lay out of sight the 
far more important advantages which we have bestowed 
on the people of British India, and the honour, glory, 
and even pecuniary advantage which we ourselves 
derive from our connection with that mighty de- 

Let us now endeavour to obtain some idea of our 
financial position. Much has lately been said as to 
the finances of India, and a great deal yet requires 
to be said. All I can attempt to do is to give you 
some vague notion of its vast magnitude. The ex- 
penditure for the year 1877 amounted to 62,500,000 
sterling, and the revenue to 59,000,000. Thus there 
was an excess in the ordinary expenditure for the year 
of 3,500,000. Besides this deficiency, there was a 
capital expenditure on productive public works to the 
extent of 4,750,000. Hence, the total excess in 
the year's expenditure was 8,250,000. Looking at 
these sums in the light of the rent of land, the cost 
of labour, or the expense of necessaries, we may well 
be astonished at the magnitude of the national 
resources of our Indian Empire ; for, on such a basis 
as I have indicated, the revenue would be treble or 
even quadruple the national revenue of the British 
Government at home, calculated on a similar basis, 
and, of course, all the particular items of the Budget 
would be increased in the same ratio. You will be 

ITS tbOGk&Sfi AND roNMTioN. 59 

pleased to keep in mind that these vast sums are 
wholly connected with the Imperial Government, and 
do not include local and provincial taxation, nor the 
taxation on inland transit, payable to the native 
princes in their own dominions. What the latter is, 
I do not know. But, according to the Budget 
estimates for 1879, the provincial revenue is estimated 
at fully 9,000,000 and the local at 2,500,000 ; and 
the provincial expenditure at 13,250,000 and the 
local at 2,725,000. The difference between the 
provincial expenditure and revenue is provided for, by 
the supreme Government, from funds appropriated to 
provincial purposes, which include large sums for law, 
justice, police, and public works. During the current 
year, the Government will lose about 500,000 for 
the maintenance and construction of the Indian rail- 
ways ; and, by the same cause, enormous losses have 
been sustained for several years past. The reasons 
for this are that the railways in India have, for the 
most part, been constructed by, or under the guarantee 
of, the Government ; and that many of them are 
purely military,- and not required for the ordinary 
traffic of the country. 

In India, the main system of railway communica- 
tion is nearly completed, and the railways yet to be con- 
structed are chiefly required to supplement the existing 
trunk lines. About 6,000 miles of railway have been 
constructed in India, at a cost of about 100,000,000. 
We have also repaired or constructed a complete 
system of roads intersecting the whole of India, and 
have undertaken and completed most stupendous 
works, at an immense cost, for improving the water 
communications and the harbours of India. Such are 


the Grand Trunk Road leading up the Ganges Valley 
and parallel to the East Indian Railroad, the South- 
western Trunk Road from Calcutta to Ganjam, and 
the Harbour Works at Kurachi. The Electric Tele- 
graph has also been in working order along every line of 
railway for years, and connects every place in India ; 
and, since 1870, nothing on the score of rapidity and 
correctness, in our Telegraph communications with 
India, remains to be desired. Nearly 4,000,000 
sterling have been expended by private companies 
and by Government in connecting Europe with India 
by Telegraph; and large sums have also been expended 
in constructing Telegraph Cables between India and 
China, Australia, and the far East. 

Let me give you, in round numbers, two or three 
items from the Indian Budget of 1879. The Land 
Revenue brings to the Imperial exchequer 22,000,000 
and involves an expenditure of 3,000,000 ; salt yields 
7,000,000 and causes an expenditure of 400,000 ; 
and opium is expected to yield 9,000,000 and to in- 
volve an expenditure of 2,500,000. The net loss by 
exchange, expected to be sustained by the national ex- 
chequer for the current year, is put down at 3,500,000 
sterling. The interest of the National Debt of India for 
the current year, is nearly 6,000,000 sterling. Inas- 
much as the revenue from land, salt, and opium, and 
the loss by exchange are peculiar to India, allow me 
to give you some facts about each of them. 

The Land Revenue of India is intimately con- 
nected with the daily life of the people, and has im- 
portant political as well as fiscal bearings. " The 
welfare and contentment of the people depend upon 
the wise adjustment of the demand on the produce of 


the land ; and difficult questions relating to land 
revenue have always had the most close and careful 
attention from Indian statesmen." 

A permanent settlement of the Land Revenue was 
made in 1793 as to Bengal, Bahar, and Orissa, and 
the assessment was close on 3,000,000. From various 
CM uses, this assessment has been increased by 600,000, 
and of this sum Bahar alone yields 400,000. In 
this settlement, the Government made terms with the 
Zemindars, or great landlords, and secured the rights 
of the tenants, or ryots, and provisions for leases at esta- 
blished rates, and fixity of tenure as long as the 
ryots paid their stipulated rents. Most of these 
great landowners have disappeared in consequence of 
their mismanagement, and the result has been a great 
increase in the number of owners, and a corresponding 
diminution in the average area of the estates. 

Various settlements of the Land Revenue have 
been made in the North-west Provinces, which became 
British territory in 1802. The last great revenue 
scheme was completed in 1842, and was fiscal, admini- 
strative, and judicial in its character ; for it aimed at 
fixing the annual revenue payable to the Imperial 
treasury, arranging by whom, and in what way, the 
people were to be ruled and the taxes paid, and also 
determining the rights of every individual in the soil. 
The proprietors recognised were not always village 
communities, or brotherhoods. The most common 
tenure is in that in which a village belongs to a 
family, and the cultivators are its tenants. The land 
settlement of 1842 included 80,800 townships, and an 
area of nearly 72,000 square miles, and fixed the 
annual revenue at 4,054,000. For the year 1876, 


the Land Eevenue collected in the North-west Pro- 
vinces amounted to nearly 4,300,000. 

As to Oude, a settlement, village by village, was 
made after its annexation in 1856; and the actual 
occupants of the soil, called village zemindars, or 
proprietory copartners, were alone to be dealt with. 
The Government determined to have nothing to do 
with middle-men ; and, in many cases, deprived the 
old landed aristocracy of undoubted rights in the 
property of the soil. The policy of confiscation was 
ultimately abandoned, and the talukdars were con- 
firmed in possession of everything they held at the 
time of the annexation, and the rights of the subordi- 
nate proprietors were confirmed as regards all they 
held at the same period. The Land Revenue collected 
in Oude in 1876 amounted to 1,403,843. 

Into the Punjab, on its annexation, was introduced 
the land system of the North-west Provinces. An 
essential difference, however, exists between the con- 
dition of things in the North-west Provinces and in 
the Punjab ; for, in the latter, the bulk of the pro- 
prietors are actual cultivators ; while, in the former, 
they are not. The whole area of the Punjab covers 
105,000 square miles. Out of 32 districts, there are 
returns of the land tenures for 29, which have an area 
of 90,400 square miles. In these there are 29,500 
villages held by close on 2,000,000 cultivating pro- 
prietors, and only 1,300 villages held by 3,500 
proprietors of the landed class. The great mass of 
the land is held by small proprietors who culti- 
vate their own land ; and the owners are associated 
together in village communities with joint interests 
and responsibilities. The organization of the pro- 


prietors of land into village communities has existed 
from time immemorial, and is the work of the people 
themselves. Each Punjab village undertakes the 
payment, through its representative council of Elders, 
of the revenue assessed upon it, and the payment is 
distributed among individual members of the com- 
munity in proportion to the land held by them. The 
revenue is punctually paid, and sales of land are 
unknown. The Land Revenue of the Punjab for 1872 
was upwards of 2,000,000. 

In the Central Provinces is to be found almost 
every form of land tenure existing in India, namely, 
feudal, zamindari, and tahutdari tenures. The nature 
of the last is permanency of tenure by subordinate 
holders and by village communities. The prevailing 
tenure is called malguzari, and exists where the estate 
is managed by a single proprietor, and the land is held 
by cultivators whose rents are thrown into a common 
stock. " Profits are divided, or losses shared, with 
reference to the respective shares of the different pro- 
prietors." In 1872, the Land Revenue of the Central 
Provinces amounted to upwards of 250,000. Out of 
an area of 36, 000, 000 acres, a little less than one-third is 
cultivated, and about another third is cultivable. 

The prevailing system of Land Revenue in the Mad- 
ras Presidency is the ryotwar, which is a system based 
on a settlement made yearly with each ryot or culti- 
vator, and not with a proprietor or village community. 
It was introduced between 1818 and 1827, and has 
the great advantage of bringing the Government and 
the great body of the cultivators into direct com- 
munication with each other. A maximum rent is 
fixed on each field ; and if the crops fail, the rent is 


reduced. During the year 1854, reductions were made 
on the Land Revenue to the extent of more than 
250,000 sterling, and a considerable increase 
in the area of cultivation took place. This 
increase is a clear proof that the people had been too 
heavily taxed. Taxation may diminish the area of 
cultivation, or the production of some industrial em- 
ployment, and may even extinguish either of them 
altogether. The Land Revenue of the Madras Presi- 
dency for 1872 was upwards of 4,500,000. The area 
of cultivated ryotwari land was 17,250,000 acres, of 
which fully 3,000,000 acres were irrigated, and 
14,000,000 acres unirrigated. 

Until a comparatively recent period, the Bombay 
Presidency did not comprise any considerable territory- 
subject to a demand on the land. But, in 1847, the 
present ryotwar system was introduced, and was based 
on a rent settlement fixed on each field for a period 
of 30 years, and not, as in Madras, on an annual 

Having the means of judging of the results of the 
settlement made on land 30 years ago, we may con- 
fidently say that they have been eminently satisfactory 
by increasing the area of cultivation, the wealth, and 
consequently the material well-being of the people, 
and also by augmenting the amount of Land Revenue 
payable to the Government. The Land Revenue of 
Bombay, including Sinde, which became a part of 
British India in 1843, was, in 1871, close on 
3,500,000, and had risen to 3,750,000 in 1872. 

Having discussed the land system of British India 
as far as circumstances would allow, I propose to make 
a few observations as to the taxation raised from salt. 

IT- PBOQBE88 AM> to.M'iTiON. 65 

It is an absolute necessary for life in India, both 
for human beings and for cattle. It has given rise to 
a Government monopoly ; and salt agencies have been 
established for the production of salt ; and, contrary to 
all true rules of national finance, widely different rates 
of duty on salt existed in different provinces. The 
equalisation of these rates, and the abolition of an ex- 
tensive Inland Customs line, have long been desired 
by the Indian Government. With the most satis- 
factory results, both objects have, at last, been almost 
effected. The Customs line was nearly 2,300 miles 
in length ; and, at an annual cost of about 162,000, 
was guarded by 12,000 men and officers. The bene- 
ficial effects of this financial change are these : An 
expensive and vexatious internal barrier was abolished 
on 1st April last ; at the end of July last year, the 
duty on salt in the North-west Provinces and in 
Bengal was almost equal ; and, even although the 
cost has been increased to 47,000,000 of people, it has 
been reduced to more than 130,000,000 of their 
fellow subjects. 

To carry out this much needed fiscal reform, agree- 
ments have been made with the native princes in 
whose territories salt mines exist. By those agree- 
ments, the whole manufacture of salt will substantially 
pass into the hands of the British Government ; and 
the right to transit duties, imposed by these native 
princes upon commodities passing through their ter- 
ritories, is surrendered in several instances. 

From the sale of opium, according to the Indian 
Budget of 1879, the Government expect to receive a 
revenue of 9,000,000 sterling. Opium is another 
Government monopoly. It is grown by the British 


Government in Bengal, and can be raised in Malwa 
by the native princes of Bahar at a much less cost 
than in Bengal. Therefore, in order to place Bengal 
and Bahar opium on a footing of equality in the 
market, compensatory duties are imposed on the Malwa 
opium. " This has been effected by levying a heavy 
duty on Malwa opium at Bombay, its sole legal port 
of export. Up to 1842, the duty was only 125 rupees 
per chest, and the quantity of opium exported from 
Malwa was equal to that exported from Bengal. The 
object has since been to equalize the duty in two ways: 
first, by increasing the quantity and lowering the 
price of Bengal opium ; and, secondly, by raising the 
duty on Malwa opium. It is now '1872-3' 600 
rupees per chest." 

Thus, the revenue from opium is raised according 
to a most objectionable principle ; and whether Indian 
financiers like the prospect or not, they will be obliged 
to remove the protective duty imposed on Malwa 

The next point which demands our attention 
is the enormous losses arising from exchange. The 
loss borne by the Indian Exchequer under the 
head of exchange is an important element in our 
transactions with India, and must be paid by the 
tax payers of India. But I venture to predict that 
no process of temporary loans will sensibly diminish the 
losses which will yet be sustained ; because they 
naturally arise from the balance of trade being against 
us, and from the yearly remittance of vast sums from 
India to this country as the direct consequence of our 
connection with India as its rulers, and as its largest 
creditors for extensive public and private works con- 

ITS rttoeMfle .\vn CONDITION. r>7 

structed in India by means of British capital. Till 
we have a recurrence of great commercial prosperity, 
and thus be enabled to pay India by means of our 
imported commodities, or by the remittances of the 
merchants of this country to those of other countries, 
owing money to India, the loss by exchange will not be 
sensibly altered from what it now is. The imports of 
commodities from India to Great Britain are greatly in 
excess of the exports of commodities from Great 
Britain to India, and the amount of the excess must 
be paid to India in some way. To remit large sums 
from India for public purposes, or . for private invest- 
ment here, at a time when the balance arising from the 
ordinary commercial relations of the two countries is 
already against us, has the necessary effect of raising 
the exchange against the Indian Government. Let 
me point out to you one or two singular facts as to 
this loss by exchange. By lessening the remittances 
from India to this country for public purposes, or by 
increasing the remittances from this country to India 
for permanent investment, we would diminish the 
loss sustained by the Indian Treasury by exchange. 
Formerly, large payments had to be made to China for 
excess of exports from China to England, and also by 
China to India for the opium and other imports received ; 
but, for sometime past, our home trade with China has 
dwindled down to nothing, and the loss by exchange 
as against India has been considerably, and as I think 
necessarily, increased to an enormous extent. When 
a great trade was carried on between this country and 
China, the loss by exchange was reduced to zero. 
Thus we have the wonderful result that the badness 
of our trade with a foreign country has caused great, 


and still increasing loss to the Indian Government. 
On the other hand, if India had not been joined to 
this country as it has been, neither the exports nor the 
imports of India would have reached their present 
magnitude. I would only further observe that 
merchants carrying on business with India are also 
great losers by exchange on their remittances from 

By the light of the most reliable information, 
I now propose to show how far an effective admini- 
stration of civil and criminal justice is attained in 
British India. And, in the first place, let us see 
what is the state of India as to crime. 

In Bengal there were, in 1872, 72,800 arrests, and 
36,800 convictions, and of 394 murders there were 
only 160 detected. In this province, professional cri- 
minals, embracing thugs, dacoits, and men who make a 
trade of poisoning and robbery, scarcely exist; and yet 
it is said that, compared with the amount of actual crime, 
the convictions are insignificant. 3,550 persons were 
flogged, or one for every eight persons imprisoned ; 
and, after confirmation by the High Court, 78 capital 
sentences were carried into execution. 

In the North-west Provinces, as everywhere else, 
poverty and crime are seen to be very closely related. 
During the year 1872, food was dearer than usual, 
and there was a consequent increase of crime. The in- 
crease was chiefly in petty thefts. The same state of 
things existed in Oude. For 1872, there were 20,000 
convictions, or 69 per cent, of the accused, and in the 
preceding year the ratio was 70. 4,600 persons were 
flogged, of whom 780 were boys, and 74 capital sen- 
tences were confirmed. To the police of the North- 

rrs taooRBSfi AND <<>M>rnoN. 

west Provinces are entrusted the supervision of the 
hereditary thieves and the suppression of infanticide. 
Strange as it may appear, various tribes in the Punjab, 
the North-west Provinces, and Oude systematically 
carry on theft and robbery. They live quietly in 
their own districts for a part of the year, and spend 
the rest in wandering about the country to rob and 
plunder, and, according to a fixed rule, divide their 
gains. By establishing reformatory settlements, 
and allowing the predatory tribes to hold land at a 
cheap rate, the Government is doing its utmost to 
change the habits of those tribes and to induce them to 
lead honest lives. Since 1870, very stringent rules have 
been enforced for the suppression of infanticide, and 
there can be little doubt that this abominable practice, 
which in the North-west Provinces extends to the de- 
struction of females only, will eventually be entirely put 
down. In the province of Bombay, the crime of 
infanticide is little known ; and there arrangements to 
remove the motives for murdering daughters have 
been voluntarily made by the people themselves. 
These measures contemplate the reduction of the ex- 
pense of the marriage ceremony. The causes which 
have given rise to the crime of infanticide are very 
obscure. Possibly the crime is now mainly attribut- 
able to hereditary custom. Whether this is so or not, 
it will most assuredly be extinguished by stringent 
measures for its eradication. 

In the Punjab, out of 358 murders in 1872, there 
were 140 sentences of death. This is an improvement 
on the previous year. 

In the Bombay Presidency, a new system of Police 
was created a few years ao-o. and there \vas ^ivat need 


\< */ 


of it ; for crimes were increasing at an alarming rate. 
In 1872, the convictions bore a small proportion to 
the crimes being only 39 per cent, or 2 to 5 and 
68 capital sentences were confirmed as against 66 in 
the previous year. 

As an example of the good effects produced by our 
rule in India, I hope you will allow me to give you 
an account of two semi-military police forces in 
Bombay. They are known as the Khandesh Bhil 
Corps, and the Gujrat Bhil Corps. The Bhils were 
the aborigines of Khandesh, a fierce mountain tribe, 
dwelling among steep rocks and pestilential jungles, 
and practising robbery as a business. They were 
the object of mingled terror, contempt, and detestation 
to the people of the plains ; and, in their sudden 
forays, spared neither age nor sex. I take my infor- 
mation from the Statement for India for 1872 : "In 
1818, Khandesh was ceded to Britain; and, in 1826, 
Mountstuart Elphinstone conceived the idea of estab- 
lishing the Bhils in agricultural colonies, and organising 
a Bhil regiment. The agricultural colonies were con- 
fided to Captain Ovans ; and to Lieutenant Outram was 
assigned the dangerous task of disciplining these law- 
less barbarians ; while Dr Willoughby established 
order and peace among the wild Bhils of Rajpeela. 
Outram commenced by attacking the Bhils in their 
mountain retreats, at the head of a single detachment, 
and compelled them to sue for mercy. Having con- 
vinced them that their rocky defiles were not impreg- 
nable, he sent back his troops, and throwing himself 
among his recent foes, unarmed and unattended, he 
claimed and received a reciprocity of the confidence 
he reposed in them. He accepted their hospitality, 


listened to their wild legends, taught them many 
simple mechanical devices, dressed their wounds, pre- 
scribed for their ailments, accompanied them in the 
pursuit of tigers, and won their admiration by showing 
his superiority in those very qualities which they most 
valued in themselves. In less than a year he had 
formed a Bhil Corps, which, when Outturn gave over 
its command in 1835, consisted of GOO well disciplined 


But this digression has almost been too long. I 
turn for a moment to the administration of civil 
justice, and shall merely advert to two matters closely 
affecting the well-being of our Indian fellow subjects. 

The registration of deeds and other documents 
in India plays an important part in our Govern- 
ment. To the former class belong deeds connected 
with land. For example, the number of wills registered 
in 1872 was 1,200, or 300 more than in the previous 
year. This points to a revolution in the ancient Indian 
law of succession, which is being gradually superseded 
by the English doctrine of freedom in testamentary 
disposition. Again " in the North-west Provinces, in 
1872, there was an enormous increase in the registration 
of deeds for sale or mortgage of immovable property 
from 86,400 to 102,700. This is an alarming sign. 
But it is uncertain whether the increase is in deeds 
executed or in deeds brought for registration ; and 
whether, if the former, the increase is due to the 
poverty and embarrassment of the landed class,- or to 
the rising price of land tempting men to sell." Tins 
is a matter requiring the gravest consideration of the 
Indian Government and the people of this country ; 


and its gravity is not lessened, but rather increased 
by the most recent information on the subject. 

Such meagre particulars must serve for our expli- 
cation of the administration of justice and police in 
India. Agriculture must next engage our attention. 

India is peculiarly an agricultural country ; but 
unfortunately it is frequently visited by great droughts 
and terrible famines. " The harvests of India, even 
in years when they fail within certain areas, are 
abundantly sufficient to feed the people. The preven- 
tion of famine will eventually be achieved through the 
increased well-being of the cultivators, improved agri- 
culture, a more perfect system of communication, and 
an effectively organised meteorological department." 
These periodical devastations impoverish the country, 
involve the whole of India, and even the British 
Empire, in stupendous financial losses, slay millions of 
people, and leave the survivors in extensive districts 
permanently weakened. India also presents, in its 
different regions, extreme modifications of climate and 
geographical features. 

Rice forms the principal food grain in Bengal. In 
Bahar rice is also the staple food ; but, where 
the fields are high and dry, one of the two daily meals 
of the cultivators is usually of wheat, maize, or pease. 
Rice is, however, the favourite food ; and the food of 
the ordinary cultivators is one-half of rice and one- 
half of cereals, millets, and pulses. In Patna and 
Shahabar maize is largely used. Potatoes are chiefly 
found in Assam and the hill districts. In the Upper 
Provinces, the people are less dependent on rice, and 
use other cereals in its place ; and in the Madras and 


Boml>jiy Presidencies, the dry grain cn>|>.^ t>nu tin- 
staple food. 

Almost from the commencement of British rule in 
India, the Government has recognised the duty of 
making advances, called takavi, to owners and occupiers 
of land, for the purpose of promoting the construction 
of minor works of agricultural improvement. 

For aiding improved agriculture in India, agricul- 
tural societies have been established ; and, acting as 
pioneers of a higher agriculture, have been fairly use- 
ful. Moreover, the Horticultural Societies have 
introduced several new vegetables to the notice of the 
natives, e.g. potatoes, cauliflower, and pease. But, 
however valuable these and such like institutions, the 
native cultivators know a great deal more than the 
Government officials give them credit for. The reason 
of this is not far to seek. " The processes of the 
natives are the results of most careful empirical ex- 
periments, carried on for several thousand years." 

In the Bombay Presidency, at least in the Dharwar 
district, the introduction of American cotton has been 
a complete success. Among the crops raised for sale 
and export, the most important commercial staple, as 
regards Bengal, is jute, which yields a soft fibre 12 
feet long. Twenty years ago, it was cultivated by the 
ryot for his own use on any spare piece of ground ; and, 
in 1872, was the second article of production in 
Bengal. The cultivation of jute has improved the 
condition of the ryots, and has not injuriously affected 
the supply of food. I shall again refer to this article 
when I consider the trade and manufactures of India. 

Another fibre, the rhea, is vastly superior to jute, 
and yet has failed to become an object of profitable 


cultivation. The rhea fibre of India is the same as 
China grass, Boehmeria nivea, and is a stingless nettle 
with a perennial root, whence rise nine or ten straight 
slender stems to about six feet, and from the exterior 
of which the fibres are extracted. Fresh sets of stems 
will yield four or five harvests a year, but the manual 
labour of extracting the fibres is too great to make 
the cultivation on a large scale profitable. When 
properly manipulated, the rhea produces one of the 
strongest known vegetable fibres, and is three times 
as strong as the best Russian hemp. All attempts to 
develop the trade in this fibre have, as yet, failed, 
because of the absence of suitable mechanical ap- 
pliances for the separation of the fibre and the bark 
from the stem. Large prizes have been offered by 
Government for a sufficiently economical machine ; 
and, although hitherto in vain, perhaps success will 
attend the efforts now being made to obtain the 
necessary article. Some day the machine will 
be made, and the lucky inventor will make 
his fortune, and establish a new industry for 
large numbers of his fe] low-countrymen. I submit 
these observations, as to the possibility of availing 
yourselves of this fibre as an article of trade, to your 
serious consideration. 

Sericulture has been largely developed in India 
since our connection with India. The East Indian 
Company took great pains to foster the production of 
silk ; and since the Company ceased its trading opera- 
tions in 1833, and the trade has been carried on by 
private individuals, the average quantity of silk ex- 
ported has greatly increased, and the price very much 
enhanced. Indigo is cultivated in Bahar and in 


Bengal, and one-half of the produce exported in 1872 
was from Bahar, and almost entirely from the districts 
on the north side of the Ganges, Tirbut, Champarum, 
and Saran ; and in 1877 the whole quantity exported 
from India was worth 3,500,000 sterling. 

The mountainous districts of India yield valuable 
crops of coffee and tea. Hundreds of acres have been 
cleared in the hill districts, and rows of tea and coffee 
plants have taken the place of tall forest trees and 
tangled underwood. The extension of coffee cultiva- 
tion in the hill districts of Southern India has been 
very remarkable. Begun experimentally in the 
Wynaad in 1840, there were 9,900 acres under coffee 
cultivation in 1862 in that district alone. In 1872 the 
total number of acres in India under coffee cultivation 
was 29,600. The exports in 1860 amounted to 100,000 
cwts. and has gradually increased to 300,000 cwts. in 
1877. Hence, coffee has become an important and 
increasing source of wealth to India. Tea cultivation 
is carried on in Assam, Cachar, Silhet, Chittagong, 
Darjiling, and Kanara. This industry has sprung up 
within living memory. It began in 1826, and was 
long carried on by Government and private enterprise 
at great loss. But its prospects are now brighter than 
ever before. 

It was my intention to describe some of the irriga- 
tion works undertaken by the Indian Government ; but 
I find time will not allow me to do so. Some of 
these works surpass anything undertaken in any other 
part of the world. To such a country as India, the 
importance of a complete system of irrigation cannot 
be exaggerated. 

I now come to the consideration of Indian trade 


and commerce, which is the last point upon which 
I intend to touch. 

A memorable feature in the trade of India consists 
in this, that only a small part of it is represented in 
the returns from the great seaports. This arises from 
the bulk of the production being consumed in India 
itself, and the value of the foreign trade being only 
a fraction of the internal coast trade combined. Of 
the home trade there are no complete statistics ; but of 
the trade from port to port, there is proof of a steady 

The value of opium exported in 1874 was fully 
11,000,000 sterling; and it steadily increased till it 
reached 12,500,000 in 1877. 

On the other hand, the value of raw cotton ex- 
ported from India has steadily fallen from 15,250,000 
in 1874 to 9,250,000 in 1877. Coincident with this 
fall in the export of raw cotton, the quantity of twist 
and yarn exported has been increased five times, and 
the value quadrupled. The decrease in the quantity 
of raw cotton exported is mainly due to American 
competition, low prices, and to some extent to an in- 
creasing demand for the cotton manufacture of India. 

A large quantity of cotton is worked up in India ; 
and the Indian duty on imported piece goods fostered 
and encouraged the home manufacture. But the aboli- 
tion of this protective duty will place the British 
manufacturer in a better position to compete with the 
home manufactured cotton goods of India. In the 
Bombay presidency, the most important industry is 
the manufacture of cotton cloth and yarns. This 
manufacture has always existed there in nearly every 
village. The cotton is cleaned and spun into threads 

PTB PBOGRESfi ANI r<M>moN. 77 

by all classes of the people. ;md there are weavers and 
dyers in every town of the province. 

Printed goods have also long been manufactured, 
especially in the large towns of Gujrat, stronger and 
more durable than European goods. But it is only 
within the last 18 years that steam-spinning and 
weaving have been introduced. They are largely 
extending their operations. In Bengal, the Punjab, 
the Central Provinces, and Mysore, large quantities 
of cotton goods are manufactured for home consump- 
tion. Notwithstanding all this, and exclusive of 
cotton thread, twist, and yarn, the value of imported 
cotton price goods for 1877 was 17,500,000 sterling, 
of which goods to the value of 1,000,000 were re- 

The local cotton mills have almost annihilated the 
English trade in low class cotton goods and yarns. 
The produce of the Indian mills find a ready sale at 
paying prices, and India gains by saving the cost of 
sending its raw material to Europe, and having it re- 
turned in a manufactured shape from a country in 
which the price of unskilled labour is much greater 
than in India. Even in Aden and Sinde, the cotton 
cloth of Bombay can, on equal terms, compete success- 
fully with the English cottons. The effect of the 
abolition of the protective cotton duties may, there- 
fore, not be so beneficial to the English manufacturers 
as some of them expect. The secret of the loss of 
the Indian market by the Manchester manufacturers 
is much deeper and more virulent than even protec- 
tion itself. It is to be traced to a shamefully dis- 
honest practice of introducing moisture into the 
English cloth, and of using an excessive quantity of 


size, to produce weight. This evil was so general in 
1872 that 75 per cent, of the entire stock of these 
cloths at Shanghae were unsaleable as sound goods. 
Does this shameful practice still exist ? Do not let us 
deceive ourselves. In business, as in everything else, 
honesty is the best policy. If English manufactured 
goods are inferior in excellency of pattern or durability 
to the manufactured goods of India, or, under a 
system of free competition, even of foreign countries, 
we will ultimately and permanently be driven from the 
Indian market in this as in all other articles of trade. 
If we are to maintain our commercial supremacy, 
we must sell our merchandise cheaper than any 
of our competitors, and must find out the most 
advantageous markets for our commerce. 

Seeds are third in the list of Indian exports, and 
show an increasing and flourishing trade. In 1874, 
the quantity exported was 6,000,000 of cwts. and in 
1877 it was doubled, and the value between 1874 and 
1877 rose from 3,250,000 sterling to nearly 7,500,000 

The next great article of export is rice. For the 
foreign trade alone, the quantity exported during 1877 
was 18,500,000 cwts. worth nearly 7,000,000 
sterling. Of rice exported from Madras, Ceylon 
receives the most. 

The most valuable special article of export from 
Calcutta is jute. The quantity of jute exported in 
1828 was 364 cwts., worth 62. The Russian war of 
1854 destroyed the supply of Russian flax, and the 
demand for jute rapidly increased. From 1858 to 
1863 the average importation of jute from Calcutta 
was 967,700 cwts.; from 1863 to 1868 it had risen to 


2,028,000 cwts. The quantity of raw jute exported 
in 1872 was 7,080,900 cwts., worth 4,142,500. 
Since 1873, the export of jute fibre has greatly 
diminished, and of manufactured jute largely in- 
creased. During 1873-4, the jute fibre exported was 
6,127,279 cwts., valued at 3,436,015. In the follow- 
ing year, the quantity and value exported were, in 
consequence of over production, still farther dimini- 
shed; in 1875-6, the quantity exported was increased; 
in 1876-7 was diminished ; in 1877-8 was increased; 
and this year the quantity will be considerably larger 
than in any previous year. Those who hold the Con- 
servative Government responsible for the present de- 
pression of trade would act more wisely by examining 
the dates and the causes of that depression. Of 
Indian raw jute, by far the largest quantity nearly the 
whole has, until within the last few years, been 
converted into cloth and yarns in Dundee and 
its neighbourhood ; and the jute trade has enabled 
several in this large and important community 
and neighbourhood to acquire enormous fortunes. 
Lately, however, a great change has taken place, and, 
although evident signs of a revival of our staple trade 
have made their appearance, demands the most careful 
investigation by all who are concerned in the prosperity 
of the staple trade of Dundee. 

Large steam mills have been established for 
spinning and weaving the jute fibre under European 
management in India. Women and boys are em- 
ployed in the spinning, winding, and sewing, and men 
in weaving ; and just as the cost of living in India is 
very much less than here, so are the wages of the com- 
mon jute workers proportionately less there than here. 


The work is practically confined to making gunny 
bags and cloth. The value of manufactured jute ex- 
ported was, in 1874, 250,000; in 1875, 500,000; in 
1876, 750,000; and for the last few years, a large 
and increasing export trade has been carried on between 
India and Egypt, China, Australia, and California, in 
manufactured goods. 

The Indian import trade in coarse jute cloth has 
thus received a severe and permanent check ; and 
the export trade has enjoyed a great and steady 
increase. For us to compete either in the Indian 
or the neighbouring markets with India in the 
manufacture of coarse jute cloth is hopeless ; but to 
do so in the finer qualities, where improved machinery 
and skilled labour can be usefully introduced should, 
I humbly suggest, be one of the chief objects of our 
local manufacturers. Here, unless I am misinformed 
and greatly mistaken, lies the secret of the future 
development of the local jute trade, upon which your 
prosperity and happiness may to a large extent 
depend for years to come. Of course, I do not here 
speak of the Continental or American trade, as to 
which different considerations apply. 

There has been a great increase in the export of 
tea, of which 17,750,000 Ibs. were exported from India 
in 1872, worth 1,500,000 sterling, and the quantity 
exported rapidly increased till it reached 33,500,000 
Ibs., worth 3,000,000 sterling. 

Wheat has also become a great article of export. 
In 1874, the quantity exported was 1,000,000 cwts., 
worth 500,000 sterling; and in 1877, 6,250,000 
cwts., worth nearly 3,000,000 sterling. 

The special product of the Madras Presidency, 


besides cotton, is coffee, the great mass of which is 
brought down from the hill districts of Mysore, Curg, 
Wynaad, and the Nilgiris, to be shipped from the 
Malabar ports. The whole quantity exported from 
India in 1874 was 300,000 cwts., worth 1,250,000 
sterling; and in 1877 somewhat less than 300,000 
cwts., worth 30,000 more than the quantity exported 
in 1874. 

The chief present interest in the sea-borne traffic 
of India lies in the development of the transport of 
merchandise by the Suez Canal. In 1872, out of the 
total value of the trade of India with Europe and 
America, about 40,000,000, or 60 per cent, passed 
through the Suez Canal, and the value is annually in- 
creasing. A trade has thus sprung up with the 
countries bordering on the Mediterranean. The ex- 
port trade in that region in 1872 was worth 
1,000,000 sterling, but India received less than 
200,000 worth of imports in return. There has 
been a great decline in the trade with Genoa, and, on 
the other hand, Austria, Syria, and Sicily appear, for 
the first time, as direct customers of India. 

In addition to the sea-borne commerce of India, 
there is the land traffic through the passes of the 
Himalayas, which lead from Sinde and the Punjab to 
the lofty plateaux of Afghanistan, Turkestan, and 
Tibet. In 1862 the trade beyond the mountain 
frontier was estimated at 1,000,000 sterling, and it 
has considerably increased during the time which has 
since elapsed. 

The trade of the Lohani merchants, called Provin- 
dahs, or runners, who are the channels of communica- 
tion between India and Central Asia, is a very old 


one. Only militant merchants of this description 
could have made a profit out of a commerce which 
had to traverse difficult mountain ranges, through 
tribes of savage robbers, and the countries between 
them seamed with the customs' lines of greedy and 
shortsighted chiefs. But the Provindahs banded them- 
selves together in large caravans to resist exactions that 
would render their trade impossible ; and, by bribing, 
cajoling, bullying, and defying their enemies, twice a 
year, did these hardy traders fight their way from the 
deserts of Bokhara, the defiles of Paropamisus, the 
Ghilzi plateau, and the passes of the Suleiman range, 
across the Indus to the Punjab. Much of this is now 
changed for the better, and with the natural result a 
vast development of trade. Once across the Indus, 
the merchant finds himself in absolute security. 
Were the rest of the route made safe, and the duties 
in Afghanistan fixed at a moderate ad valorem rate, 
the Provindah merchants might make four journeys 
instead of two a year, and the value of the trade 
would assume still larger proportions than heretofore. 
Before the interference of the Russians in Central 
Asia, English cloth and tea were exported from Bok- 
hara to Samarkand, Khokand, and Tashkand, but the 
Russians have prohibited the English trade in order 
to establish a monopoly for themselves. 

The commercial traffic between British India, and 
Eastern Turkestan, across the Himalayas, only dates 
from 1867. This trade might be largely developed by 
British merchants. Kashgar is only 390 miles from 
Ihilam in the Punjab ; and as the cost of transit is 
less between England and Eastern Turkestan than 
between Moscow and the latter country, it is plain 

ITS PBQOBiBa AND roM>riioN. 83 

that we could sell our goods cheaper than Russia, 
whose great ljr<-t is to keep us out of this market by 
all means in her power. All that requires to be done 
is to send suitable goods to the market, and study 
the tastes of the buyers. A treaty of commerce was 
entered into between India and Kashgar and Taskand 
in 1874. 

In the Eastern Himalayas, there are trade routes 
from India to Tibet by Nepal and Sikkim, and by the 
country of the Tawang Bhutias. The prohibition of 
trade between India and Tibet is solely due to orders 
from Peking. The local officers in Tibet would gladly 
facilitate a direct trade with us. Here is another 
opening for our commerce in the course of time. 
Various exploring parties have made considerable pro- 
gress in acquiring a knowledge of the roads to Tibet 
from India. 

The statistics which I have submitted to you as to 
the trade of India, and the few facts which I have 
mentioned as to the possible new markets for the goods 
of this country, and perhaps of this town, are, 
I submit, not unworthy of your serious consideration. 

Ladies and Gentlemen : I have sincerely to thank 
you for the attention which you have so kindly ac- 
corded to me. The Conquest and Government of India 
by Britain surpasses everything of a similar nature in 
the history of the world. Therefore, while we are 
justified in looking upon our position in India with no 
small pride, at the same time, we must ever remem- 
ber that exalted station involves great responsi- 
bilities. India is seldom wholly exempt from the 
terrible calamities of famine and destitution, and its 
population, in many regions, dangerously approaches 


the verge of chronic poverty. Moreover, it is a country 
essentially different from our own in all that pertains to 
modes of life, its customs, its laws, and its religion. 
It is also liable to the subtle influences of wild 
paroxysms of religious hatred and fanaticism. It is 
also the blissful paradise of a semi-barbarous and 
great military and almost neighbouring people, who, 
under the influence of almost uncontrollable im- 
pulses, and, in numerous and not improbable circum- 
stances, may, at no distant period, endeavour to 
paralyse our authority in Asia in order to carry 
out their schemes of ambition and aggrandisement 
in Europe and in Asia. In our midst, some men of 
great weight in the management of public affairs 
pretend to ridicule this danger ; but they are 
dangerous leaders at the present crisis of the history 
of Europe. We must, therefore, be on the alert 
against external foes as well as on our guard against 
certain blind guides at home. We must have clear 
ideas as to what the present and the future demand 
of us, and act accordingly. A policy of supine in- 
action, or of sublime confidence in the absolute recti- 
tude of foreign statesmen, will not suffice to protect 
us from disaster, and is unsuited to the age in which 
we li ve. Success, honour, glory are the rewards of the 
prudent, the active, and the bold. Keeping our eyes 
open, ever remembering tha,t we are subjects of the 
British Empire, we have no cause to be afraid of the 

Let tis study the past history of our country, and 
especially of its connection with India, and we will 
unquestionably arrive at a just and prudent course of 
action. We must develop the boundless resources of 


India to the utmost of our power. We must give it 
the benefit of the most approved commercial, and 
economic, and financial system. We must carefully 
cut down unnecessary or extravagant expenditure in 
all branches of the public service. We ought to look 
upon India as affording unlimited scope for the profitable 
investment of British capital, energy, and science. 
We must, as far as consistent with the maintenance 
of our paramount authority, avail ourselves of the 
talents of the natives for imperial and local govern- 
ment. We must also endeavour to keep down the 
size and the cost of the military force in India, and 
be ready to defend our Indian Empire from all dangers 
within, or insidious attacks from without. Let me not 
be misunderstood. If we would escape unspeakable 
calamities, we must have no hesitation about the 
preservation of our Indian Empire as an essential part 
of our dominions. Let justice, mercy, and truth inspire 
and guide our public conduct at home and abroad, 
and we have no cause to be afraid of what may happen 
either in Europe or in Asia. May peace, security, and 
honour be the watchwords of our Indian policy ! 








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