INDIA ON THE EVE OF CROWN GOVERNMENT 67
carried on by persons of small capital must be absolutely prevented. The rich merchant can afford to pay the utmost demand likely to be made upon him, because a considerable douceur will not fall heavy on a large investment, and because his rank and wealth secures him from any outrageous extortion. But to the petty trader, a moderate fee would consume the probable profit of his adventure, and he has little or no security for moderation,
“Hitherto the attention of the authorities at home, and of the mercantile body generally in England, would appear to have been directed chiefly to the object of finding a market for the manufactures of the United Kingdom. They have consequently looked more to the import than to, the export trade of India. The duties prescribed by Regulation IX of 1810 have accordingly taken off a great number of articles sent from England hither : while of the exports only indigo, cotton, wool and hemp have been made free, and this more with a view, I apprehend, to English than to Indian objects.”
It would be profitable to read what Lord Ellenborough has to say regarding these inland transit duties:
“While the cotton manufactures of England are imported into India on payment of a duty of 2additional duty upon the manufactured article of 2of Inida are subjected to a duty on yarn of 7 12 [ per cent, the cotton manufactures ] 12 [ per cent to an ] 12 [per cent, and ] finally to another duty of 2 12 [ percent, if the cloth should be dyed ] after the Rowana (pass) has been taken out for it as white cloth. Thus altogether the cotton goods of India (consumed in India) pay
17 12 [ per cent]
“The raw hide pays 5 per cent. On being manufactured into leather it pays 5 per cent more ;. and when the leather is made into boots and shoes, a further duty is imposed of 5 per cent. Thus in all there is a duty of 15 per cent (on Indian leather goods used in India).
In what manner do we continue to treat our own sugar ? On being imported into a town it pays 5 per cent in customs, and 5 per cent in town duty, and when manufactured, it pays, on exportation from the same town 5 per cent more, in all 15 per cent (on Indian Sugar used in India).
“No less than 235 separate articles are subjected to Inland Duties. The tariff includes almost everything of personal or domestic use, and its operation, combined with the system of search, is of the most vexatious and offensive character, without materially benefiting the revenue. The power of search, if really exercised by every custom-house officer, would put a stop to internal trade by the delay it would necessarily occasion. It is not exercised except for the purpose of extortion.”
Added to this was the lack of uniform currency in India.
All these were a means to kill Indian industries.