revenue to fluctua 11. Further, in the lapse of time, vicissitudes take place. One portion of the country Power given up of under the influence of new lines and facilities of traffic, becomes prosperous; another, by re-adjusting the the desertion of old routes and modes of communication, sinks in the national scale. The tions of agricultural latter cannot now bear the revenue demand which it formerly discharged with ease; the condition. former has a surplus of profit greatly disproportionate to the standard at which its settlement was framed. The adaptive character of our present system enables us here to balance periodically the burdens of the State. Those who have prospered through the force of circumstances are assessed (according to the known and essential conditions of their tenure) at a moderate proportion of their increased profits, and from the same source the Government is enabled to remit a suitable proportion of the heavy assessments which may be bearing down the less fortunate tracts. Where the assessment is perpetually fixed, it will be impossible to afford the relief which such vicissitudes render imperative without a clear loss to the Government. Instead of periodical equalization of uneven assessment, there will be the hazard of remissions being required with no fund of equivalent increase from which to meet them. 12. This is a point Mr. Keen has laid much stress upon as an argument for postponing Preface, page ii. the permanent settlement in these parts, for he says that we are in a state of transition, and that when new lines of traffic, new emporia of trade, and new systems of irrigation have declared themselves, "we may then admit that the time has come for a permanent settlement." But it appears to me that this argument, if pressed to its legitimate limit, would defer to so indefinite a future the whole question, as to be virtually a negative of a permanent settlement altogether. 13. So also with the question of prices. It would be impossible at any future period to say that prices had reached a limit beyond which they will not rise. In certain quarters, indeed, such as Jubbulpore, which are at present far removed from any general market, it may be a question whether the demand should be made perpetual until the effect of the opening of the new commmunications now under construction, has fully told upon the prices of its agricultural produce. But in respect of the greater portion of these provinces, it may be doubted whether the tendency will not be rather in the opposite direction; for districts at present remote, will, by the extension of railways, be brought into nearer competition with its markets, and the effect will be to lower prices. So far, then, as this argument likewise is concerned, its legitimate conclusion is not so much to postpone a permanent settlement as practically to reject it. 14. The only remaining point for consideration is one which may be thought too recondite and theoretical for any practical weight. But the Government, before it irrevocably commits itself, is bound to keep in its view all the contingencies and possible future effects, however remote, of a step which will affect so large a portion of its existing revenues. is quite possible, then, that silver may in a future age greatly fall in value.* The prices of all other commodities would correspondingly rise, and the expenses of Government, both in its general expenditure and in the salaries of all its employés, would be increased in a similar proportion. Meanwhile, the income derived from the land revenue would remain stationary, or rather, it would suffer an actual deterioration measured by the fall in the value of the metal in which it is paid. Supposing the fall of value to be one-fourth, then, for every 100 rupees of revenue as originally fixed, Government would receive the value of only 75 rupees. The effect would be the same as if the proportion of profit assigned to proprietors were increased 25 per cent., or if the proportion of produce representing the share of Government were decreased by that amount. So far as the discharge of liabilities arising from the existing Government debt is concerned, there would be no inconvenience, as these, being contracted in the same currency, would suffer an equal depreciation. But in other respects any great revolution of the kind contemplated might prove embarrassing to the Government of the day. It 15. Under the principle of temporary settlements, it would be always in the power of Government to re-adjust its demand, either by the addition of a per-centage corresponding to the altered value of the currency or otherwise. How far the advantage of being able to exercise this power would warrant any practical action, will be further considered below. 16. Advantages of a Permanent Settlement-I pass on now from the objections against a permanent settlement to the advantages which it offers. Possible fall in the value of silver. 17. First, as respects the directly financial results, there would be the saving of the very Expense of material expense incurred by the Government in the periodical revision of its demand. To periodical re-settleenforce any satisfactory equalisation of the assessinent, a detailed field measurement from ment saved. time to time becomes necessary; and this process is especially required in all those tracts in * "Nobody can say that some day silver may not also undergo a great fall, brought about by a production which should be distinguished by the two following characteristics of being much greater in comparison with the employments to which it had hitherto been applied, and of being produced under more favourable circumstances; that is, at less cost per kilogramme for the metal obtained. There are strong reasons for thinking that, if the United States annexed Mexico, and penetrated further into the regions of Central America, this event would not be of tardy accomplishment, under the auspices of a race so industrious and so enterprising as the Anglo-Saxons. Nevertheless, fall of silver is an event to be anticipated, an event even probable at no very distant date."-Chevalier on the Fall of Gold, p. 128. Zemindars and ryots Disadvantage from want of periodical survey and record of rights. Permanent settlement will remove the check to agricultural improvement occurring towards the close of a settlement. Permanency of settlement will en courage investment of capital. Investment of capital discouraged under the present system. in which it is contemplated to assert the right of Government to an enhanced revenue based on the extension of agriculture. This operation, and the measures attendant on it, cannot be carried on without considerable expenditure of the public money. In the present year it is estimated that between four and five lakhs of rupees will be spent by Government on this object, and an equal, if not greater amount, will probably be required for many years to come, before the 30 years' settlement now expiring shall have been revised. 18. A permanent settlement once introduced would free the Government for ever from this expenditure; and the saving may be taken, so far as it goes, as a set-off against the potential increase of revenue under the present system, which will be abandoned. 19. In a similar manner, the people themselves will be saved from the expenses, exaction, and oppression to which at every re-settlement they are liable. I cannot regard this a light advantage. Let our settlement officers be never so active and vigilant, the subordinate agency at their disposal is, like all other native agency, generally speaking, venal and corrupt. They have opportunities of misrepresentation to injure the zemindars and ryots, and to favour one party or class at the expense of another; and they are not slow to turn their opportunities to account. Their time is short and they make the most of it. This species of tyranny is, I believe, in no case, wholly absent; and in most settlements falls heavily on the people. It would be totally swept away by permanent assessment, to the great relief of all classes. 20. It may be urged, on the other hand, that the pre-ent advantage of a periodical detailed survey, and the ascertainment and record of all landed rights as they stand, will be lost, to the inconvenience of the people and the detriment of the public administration. The outlines of possession are liable to alter greatly in the course of 30 years: the limits of cultivation vary, and changes occur in the distribution of property and of the rights of occupancy. Without a new field measurement no full and complete registration of these can be compiled; the rapid variations arising in the lapse of time soon leave the old record behind; it no longer corresponds with existing facts, and, becoming obsolete, loses its value. That some benefits of convenience and usefulness may be thus given up is possible; but the loss, whatever it may be, can in some degree be repaired by requiring of the Putwarees that their annual record shall keep pace with the changes of the year. And if care be taken at the final settlement (which I presume will precede any measure of perpetuity) to make the survey and record of occupancy and rights very complete, I do not see why these documents should not be kept up in a manner sufficiently perfect for all practical purposes. But, giving the objection its utmost weight, it will go but a short way to counterbalance even the minor advantages of a permanent settlement referred to in a previous paragraph. 21. Looking now to the benefits which may be anticipated in the improvement of property, I notice first the periodical check which the prosperity of the country receives under the present system, whenever a settlement approaches near its termination. As the assessment of the coming settlement is to be fixed in reference to the extent of cultivated area and value of the produce, it is the natural object. of every proprietor to make these appear as small as possible. Hence, not only is the expenditure of capital on new improvements stayed, but the state of existing prosperity is actually depreciated. The proprietor refrains from cultivating the usual breadth of crop; he narrows the area of land under irrigation; he postpones the sowing of valuable staples. It is quite natural that he should do so. The present sacrifice will be amply made up, if even a small diminution of the Government demand is thereby obtained. Penalties are threatened for such procedure. But so long as human nature is what it is, penalties will be fruitless, and every fresh settlement upon existing assets will tend to this result. 22. Leaving out of view the few last years of a temporary settlement, it must be admitted that the effect of a determination of the assessment for 20 or 30 years has been found eminently beneficial in insuring improvement. Colonel Baird Smith's Report bears ample testimony that it is so; almost every district in these provinces is an unequivocal witness to the same truth. The security of a long settlement stimulates industry and encourages the expenditure of capital, for the profits of the period are certain to replace the capital, and to yield a handsome return besides. But it is also certain that the inducements to investing capital in the improvement of the land would in most cases be very greatly strengthened, by fixing the demand in perpetuity. When any large disbursement is now contemplated, it is perfectly natural for the proprietor to hesitate. He will reflect whether it is, after all, worth his while to sink 1,000 rupees, say, in a well, which shall add 200 rupees to his rental, seeing that, in consequence of this increased profit, he may be sure that at the next settlement 100 rupees will be added to the assessment of his estate. Had the settlement been permanent, there would in such a case have been no doubt about the matter; where the settleinent is temporary, the project is in all likelihood cast aside. 23. The inexpediency (if not, under some circumstances, injustice) of such a course has not escaped notice. The late Court of Directors ruled that a liberal consideration was to be "Despatch dated 13th August 1851.-This laid down that "although settlements must be formed with reference to the value of the land at the time," still a liberal consideration was to be "given for the improvements attributable only to the efforts of the tenant himself, and especially with regard to such as are of a comparatively recent date, and with regard to which he has reaped the advantage only for a short period under the old settlement." be given for all improvements effected at the expense of the occupant, especially recent improvements, "with regard to which he has reaped the advantage only for a short period." The 37th Rule for re-settlement, issued in 1854, contains a still stronger injunction to make allowance for the expenditure of capital, and to assess a correspondingly moderate jumma. But it is evident that the principle prescribed by the late Honourable Court is of too vague a character to effect any certain results; and even the rule issued by the Board must prove practically inoperative, so far as security to the landlord is concerned. It would be a matter not of exact calculation, but of mere speculation, what portion of increased productiveness was attributable to the investment of capital; and generally the assessment of an estate is affected by so many considerations, and depends so greatly on the opinion of the settlement officer, that the rule, as a ground of confidence in the future, could afford to proprietors no practical satisfaction, and is not calculated to diminish that uncertainty of reaping the full results of labour and capital, which is the bane of all temporary settlements. 24. Some parts of the country, as those regions in Bundlecund which are incapable of irrigation, may be less affected by this consideration than others; but even their advances must be expended for the settlement of new cultivators, the digging of wells for drinking water, the provision of seed, and other conditions necessary for founding fresh hamlets and extending cultivation. There is probably no part of these provinces in which the impulse imparted by a permanent settlement would not be felt, where investment of capital would not be materially quickened. nent settlement will 25. It is true that great allowance must be made for the habits of the people. Motives of How far the induce this kind will have their full and legitimate influence upon European settlers; but the ments of a permaNatives of India are disposed "to leave well alone," and to keep to the old ruts which the tell on the native usage of ages has sanctioned. Accordingly, we do not find such great difference in the community. progress of the four permanently settled districts in these provinces as we might have looked for, although the inducements to invest capital, from the limitation in perpetuity of the Government demand, have been for more than half a century in full force there. Nevertheless, even if we take into our account the prescriptive indifference and immobility of the national character when ordinary motives are concerned, it would still be against reason, and against the experience of other parts of the country, to hold that so vital a change as the fixing for ever of the present shifting assessment should not produce the most important results. 26. For it is not doubted that the value of property would be vastly increased by such a Increased value of measure. Nasir Ally Khan Bahadoor (who, being a resident of Jounpore, is a good autho- land caused by per rity on the subject) assures me that an estate would sell in a permanently settled district at manency of the from two to three times the value it would fetch, though in every other respect similar, if under temporary settlement.+ Where the superior value of a permanently settled estate is so decidedly recognised by the people themselves, it is against all analogy to suppose that the disposition to invest capital in its improvement will not likewise exist in a corresponding degrec. Therefore, I do not doubt that a great and accelerated improvement of property would result from a permanent settlement of the revenue. assessment. 27. The political benefits, moreover, to be looked for from the measure are not small. A Political benefit of degree of contentment and satisfaction will be diffused over the land which it is not easy to contentment. estimate. 23. Opinions, indeed, on this head have been sometimes expressed in extravagant terms. The comparative immunity of Bengal from revolt in 1857-58 has, by some, been attributed in part to this cause. Experience refutes the conjecture. Experience refutes the conjecture. In these provinces, the quarter in which the people continued longest and most persistently to oppose our Government, was that of Ghazeepore, a permanently settled district. The truth is, that the inducements to revolt were to a great extent local in their character; they were brought to bear in their full strength on hardly any part of Bengal; but where they were brought to bear, as in the case of Shahabad, the permanent settlement was as powerless to hold them in check as the temporary settlement. 29. But though by no means inclined to attribute any such magical effect to a settlement in perpetuity of the land revenue, I am well assured that the measure would be hailed with intense satisfaction by the landowners in these provinces. I was not aware till lately how strong is the popular feeling on the subject. Indeed, it is only of late that the attention of the landowners has (I suppose in consequence of its discussion, during the last two or three years, "In villages the cultivation of which has been much extended since the settlement by the breaking up of new land, or the per-centage of irrigation increased by the sinking of new wells or other improvements, the expenditure of capital must be allowed, and a moderate jumma assessed.”—Rule 37. + I'give the following rates from him as those which are notoriously current :The calculation is based on the average net surplus profits remaining after the Government demand and all other expenses have been paid. Under temporary settlement, a property yielding 12 annas per mensem of such profit (that is, nine rupees per annum) would fetch 100 rupees, or a little above 11 years' purchase. Where the permanent settlement prevails, the same price would be given for a property yielding four, five, or six annas per mensem; that is, 3, 34, or 4 rupees per annum, being at the rate of from 22 to 33 years' purchase. It is remarkable that the greater the proportion of surplus profit to the assessment, the higher the market rate per cent. Ahmud Buksh, an intelligent landholder of Futtehpore, confirms this statement, and adds, from his experience as vakeel in the Sudder Court, that there is a corresponding superiority in the value attached even to a cultivating tenure in the permanently settled districts. Recapitulation of benefits. Saving of revenue establishments. Advantages of a permanent settlement weighed against the disadvantages. Relinquishment of prospective enhance ment of the land revenue will be compensated in direct returns from increased prosperity. + Pamphlet before quoted, page 27. years, in the public prints) been recalled to it as a measure at all likely to be introduced. But (in the Lower Doab at least) they have quickly become accustomed to the idea, and are prepared to welcome the boon whenever it may be conceded. 30. To resume the benefits to be expected from a permanent settlement are— 1st.-Saving of the expenditure now occasioned by the necessity of periodical assessment. 2d.-Deliverance of the people from the vexations prevalent at every resettlement. 3d.-Freedom from the tendency to depreciation of property towards the close of each temporary settlement. 4th.-Prosperity arising from increased incentive to improvement and expenditure of capital. 5th.-Greatly increased value of landed property. 31. To these it has been suggested to add the saving to Government from the decrease of expenditure in the subordinate establishment required to collect the revenue. The revenue will certainly be realised with greater ease; yet I doubt if much direct saving of salaries can be anticipated from this cause. The tehseeldar and his staff will have more time to devote to their judicial and other duties. Indirectly, also, savings in the higher branches of the service may be facilitated by the measure. For example, when the settlements preliminary to the act of perpetuity have all been completed, a single officer may probably suffice to conduct the duties of this Board. 32. Let us now revert to the objections brought against a permanent settlement, and see how they stand in comparison with the advantages: 33. First: the net surplus of revenue to be looked for at each revision from the growing prosperity of the country, after adjusting all necessary fluctuations, is abandoned for ever. I do not estimate the prospective revenue which will be sacrificed from this cause at any very large figure. The opinion of our Board in the Administration Report for 1859-60, that the amount of land revenue is not likely to vary to any great degree from its present amount, is, I believe, correct.* 34. This estimate, however, was formed on the supposition that the Government would retain the power of periodical readjustment, and would be able to reimburse itself for reductions arising from calamity and deterioration, by levying an increase where it was justified by increase of assets. The calculation will of course be affected by the relinquishment of that power. Any variations which may become necessary under a perpetual assessment will be only on the side of reduction. 35. But neither do I calculate reductions from this cause at any very serious amount, if the precaution be taken (which I will endeavour to show below is necessary) of a careful revision of the existing settlement before it is declared to be perpetual. 36. The special cause of increased productiveness arising from Government works of irrigation I reserve for further consideration. 37. There remains the contingency of a future fall in the value of silver. This contingency might be met, as well as other objections above urged (according to some authorities), by a very long settlement, say for 50 or even 100 years, which would secure many of the benefits of perpetuity, and yet leave the Government free to assert its rights, shou'd it deem it expedient, in a future generation; or a legislative enactment might reserve and except the contingency of the fall of silver from the guarantee of perpetuity. The merits of such expedients will be treated of in a future part of this paper. Supposing, however, that no such expedients are found to be feasible, I do not think that the remote risk contemplated from this cause can be allowed to weigh against the immediate benefits to be expected from a per manent assessment. 38. Although no increase of income from the land tax will for the future be possible, yet other branches of the revenue will not fail eventually to share largely in the benefits flowing from the accelerated progress and increased prosperity of the country. This is a sufficient reply to the objection that "those who call upon the Government of India to forego the power of raising, without oppression, an elastic description of revenue, are bound to indicate the sources whence it could be made good."+ It must be remembered that no present loss of revenue is incurred (that is, if a careful revision precede the measure); the loss is one which it is apprehended will happen some 30 or 40 years hence. But by that time we may fairly look for a far greater enhancement of the revenue from the indirect return caused by the vastly improved resources of the country, than could have been obtained from the taxation of a portion of the increased rental anticipated from the extension of agriculture. 39. Allowing * After referring to several instances of extensive reduction on the one hand, and of large enhancement in Goruckpore on the other, we wrote: "In the resettlements of Saharunpore and Boolundshuhur it is probable that the net result will be a small gain to the Government; but in many of the districts which in a few years will become open to revision, it is likely that the application of the liberal rule of settlement at half the assets will, to some considerable extent, affect the revenue. Against this, however, may be placed the general tendency of the revenue to advance from the lapse of maafee tenures and the settlement of confiscated jagheers. Upon the whole, then, it is not expected that the land revenue of these provinces will materially vary from its present amount."-Revenue Administration Report for 1859-60, paragraph 20. It is to be observed that the benefit to the revenue from lapse of rent-free tenures would not, of course, be affected by a permanent settlement. 39. Allowing, then, the widest scope and fullest consideration to all the objections which can be urged against departing from the established system of temporary settlements, the advantages of a settlement in perpetuity appear to me vastly to outweigh them all, and I most decidedly advocate the measure. 40. So much for the general question. I pass on to notice several special points which Details involved in will require consideration, supposing that the Government decides in favour of a permanent carrying out the settlement. These relate 1st. To the time when the measure should be introduced. 2d. The manner of its introduction. 3d. Whether there should be any and what, exceptions. 4th. Whether any special arrangement is called for in the case of irrigation from Government canals. measure. 41. The sooner a measure of such beneficial tendency is carried out the better, with due I.-Time when it advertence to the moderation and uniformity of the assessment to be thus irrevocably fixed. should be introduced. Any hasty or premature determination which should stereotype existing inequalities would injure the interests of the people as well as of the Government. Almost fabulous tales of extreme variation in the pressure of the perpetual assessment of Bengal reach these provinces, and that not arising so much from subsequent improvement as from original inequality; a rental of several thousands of rupees is said sometimes to yield to Government but 10 or 20. On the other hand, there are not wanting instances of excessive severity, and of revenue sales as the consequence. We have in our own permanently assessed districts not infrequent examples both of undue pressure and of inordinate profit. To relieve the former, the Government is occasionally put to some loss. There have also been cases where, from the unequal distribution of an otherwise just demand on the component parts of a joint property, similar results have occurred. 42. Now, although we had advantages in the settlement under Regulation IX. of 1833 which Bengal had not, and the assessments were framed with an approach to uniformity, yet that object was often very imperfectly gained, and we have now opportunities far superior to what then existed for making an equable assessment. 43. Further, the development of resources in various degrees, caused by the long limitation of demand during the currency of the settlement now expiring, bas occasioned diversities of condition and pressure even in assessments originally tolerably uniform. These have been often due as much to natural advantages as to increased industry. It is no departure from the principles above advocated, to say that such improvements, having occurred under a settlement avowedly temporary, should be taken into account in fixing the perpetual assessment. 44. The permanent settlement will give far greater satisfaction to the people generally if it is preceded by a careful revision, and all are allowed a fair start together in the race of future improvement. Such is the opinion of all the native gentlemen whom I have consulted. They deprecate any hasty process by which present inequalities should be stereotyped as unjust and inexpedient. 45. Any premature measure of this kind would further involve the Government in considerable loss. There are quarters where it is well known that the Government revenue presses too heavily, and we are only waiting for their turn of resettlement to grant in them the necessary relief. In the course of resettlement this will be done probably without any loss, upon the whole result, to the Government; otherwise an unnecessary defalcation is sure to arise. * DISTRICT. II.-Permanent settlement should be preceded by a careful revision. Date on which Settlement under Regulation IX. of 1833 expires. 46. The perpetual settlement, then, should be introduced into each district so soon as a careful revision can be effected. The work of resettlement is already going rapidly forward in one district it may be said to have been completed; in three others it is in progress. The other settlements can be taken up in the order of their falling in.' The latest term extends to 1874, and the interval will not be too long for a careful revision. But there would be no objection to commence work in anticipation of the expiration of any existing settlement, provided a sufficient number of qualified officers are available. Saharunpore Boolundshuhur 47. It appears to me that every previous effort should be re- Furruckabad doubled for securing a strictly equal and impartial assessment, seeing Budaon that any inequalities which may now be admitted will soon be beyond Azimghur Bijnore our reach to remedy. Especially the European staff for settlement Bareilly purposes should be advanced to its utmost possible strength, so that Shahjehanpore as little temptation may be left as practicable to native officials for Allyghur corruption. The inducements offered to secure favour in a settle- Mynpoory ment known as about to be a perpetual one will be immense, and Cawnpore it is not in the generality of native officials to resist such induce- Futtehpore ments. Allahabad Etawah Muttra 48. Extraordinary arrangements, if calculated to secure this object, Agra ought not therefore to be rejected simply because they are irregular or Humeerpore Banda expensive. An officer, for example, whose standing entitles him to the 164. · July 1857 (new settlement nearly completed) 1859 99 1859 ditto in progress. |