HL Deb 14 March 1901 vol 90 cc1512-5
LORD SANDHURST

My Lords, I beg to ask the Under Secretary of State for India if he can give any information as to scarcity prevailing in some parts of India; and whether the stability of the rupee has yet had any effect in aiding the introduction of capital in India. Perhaps the noble Earl could also inform me whether or not an inquiry is now being held in Gujarat as to the way in which the assessment is collected by certain natives. I understand there was an intention of holding such an inquiry, certain serious allegations having been made. I should also like to know whether the noble Earl considers that the food supply of India is sufficient. That was the opinion held up to a year ago, but the continued scarcity which has prevailed may possibly have caused other conclusions to be arrived at. With regard to my question, whether the stability of the rupee has yet had any effect in aiding the introduction of capital into India. I am not quite certain if sufficient time has elapsed to enable any definite opinion to be at the disposal of the noble Earl; but in view of the immense importance of the question from an economic standpoint any statement which the noble Earl can lay before the House will be received with considerable interest.

*THE UNDER SECRETARY OF STATE FOR INDIA (The Earl of HARD-WICKE)

The noble Lord asked me whether I could give him any information with regard to certain charges that have been made against subordinate revenue officers at Gujarat, and whether an inquiry is being held. I can inform the noble Lord that an inquiry is taking place, but we have no official information as to what has transpired during the inquiry. The only information we have is the information gathered from the Indian press. In a few weeks that inquiry will, no doubt, be concluded, and we shall then have official information on the subject. The noble Lord asked whether experience has shown that India is in a position to produce sufficient food to feed her inhabitants. That is, of course, a big question, and it would occupy considerable time if I were to explain all the intricate matters connected with it; but, generally speaking, the experience of last year has shown that India, even in time of famine, can produce sufficient food to feed her people. In spite of the fact that more than a quarter—probably a third—of the food supply failed, the loss financially being estimated at £50,000,000, yet by railway communication even the districts that were absolutely without crops were able to be supplied with food. I may mention in this connection that America sent four ships containing wheat to Calcutta in December, 1899. Two cargoes were disposed of, but the other two ships had to leave Calcutta and go to South Africa to dispose of their cargoes. I think that shows pretty clearly that sufficient food was available in India if it could only be conveyed to the districts where it was required.

The latest information regarding the food supplies and harvest prospects of the country is contained in the following telegram, which was received yesterday from the Viceroy— In Burma, Bengal, North-West Provinces, Punjab, full average out-turn of rice and other autumn crops has been obtained, and, notwithstanding damage caused by rain and blight, an average spring crop is expected there. Population 150,000,000; food grain area 120,000,000 acres. In Madras, harvest all round below the average by about 20 per cent. Population 36,000,000; food grain area 28,000,000 acres. In Bombay, Central Provinces, and Berar with population 31,000,000 and food grain area 38,000,000 acres, autumn harvest was poor, and area sown below the average. Spring crops prospects are disappointing in Central Provinces and Berar, and bad in large portion of Bombay. Prospects fair to good in Mysore, Central India, and Rajputana, with population 27,000,000; poor in Baroda and in great part of Hyderabad and Bombay States, with population 22,000,000. We anticipate that Burma, Bengal, and Upper India will have surplus food for those provinces and states where crops are poor. Prices of wheat and other spring grains are high, especially in Bombay and Central Provinces, and it is possible that they may not fall much until next rains. Maize and millets are locally cheap in Upper India and also in Gujarat, and in part of Central Provinces. The food stocks of the country are believed to be smaller than usual, but will be replenished by coming harvest. With regard to the latter part of the noble Lord's question—namely, whether the stability of the rupee has yet had any effect in aiding the introduction of capital into India—I do not wish to anticipate the figures of the annual financial statement which will be submitted to the Viceroy's Council next week; but I may state generally that one of the most important results of the steadiness in the price of the rupee— it has not been lower for some time than 1s. 3⅞d., and has constantly been at 1s. 4d.—has been to retain capital in, and to attract capital to, India. A few-years ago great anxiety and uncertainty prevailed, and dividends, earnings, and savings were hurriedly remitted to England in the fear of a further decline in the value of the rupee. That state of uncertainty, I am glad to say, is now over, and people are not afraid to remit money to India to their friends and relations, feeling secure, as they do, that there is no fear of any material fall in the price of the rupee. There has been an increase, too, during the last few years in the number of factories, the hands employed, and in the capital invested in the country. Then, again, there has been a large addition to the fleet of ships which trades between this country and India, which is, I think, an indication that capital must have gone to India.

But the most striking and significant sign of the confidence that has been re-established in the financial system of India is to be observed in the railway statistics. In 1893 the capital invested in Indian railways was 155 millions; in 1900 it had amounted to 200 millions. During those seven years the mileage had increased from 17,200 to 24,600 miles, or an average of 1,000 miles a year. The first Indian railway was opened in 1853, and the railway revenue accounts for 1899–1900 showed for the first time during these forty-seven years a net profit of £76,000. That is in no sense a paper profit; but is arrived at after allowing four per cent, interest on all capital expenditure during all these years. I believe the returns for 1900-1 will show a similar increase. If the noble Lord has any fears as to the influx of capital into India. I believe those fears are groundless. I think, if India is only spared the burden of plague and famine, that in the near future there is every prospect that she will enter on a new era of commercial prosperity.

LORD SANDHURST

I am very much obliged to the noble Earl for the information he has given us. But I would like to ask one further question, namely, whether in Gujarat the cattle have suffered so severely as is rumoured? I saw it reported that about seventy per cent, of the cattle were dead.

THE EARL OF HARDWICKE

I regret that I have no information with regard to cattle.

House adjourned at twenty minutes before Six of the clock, till To-morrow, half-past ten of the clock.