Vol. 12 · pages 81–85

60 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES which is not so much in advance of the rates of goods as by increase of the bulk of trade.” 1 By 1600 A.D. the merchantile class had become so powerful that “but for the hostility of the city, Charles I could never have been vanquished, and that without the help of the city, Charles II could scarcely have been restored.” 2 India contributed or rather was made (to)* contribute to the prosperity of England in many ways. Trade as the augmentation of wealth must be placed in the forefront. Stock quotation is a barometer of business conditions applying the same criterion we will see how much Indian trade was valued in England. “Throughout the (18th) century the Company’s stock was always at premium. In 1720 it was quoted as high as £450, but by 1755 it fell to £148. This figure represented much more nearly its real value. Even supposing the dividend of 10% to be average, this would only mean interest at the moderate rate of about 5 1 3 % on the cost price. It continued to fall until 1766, when the prospect of profit from the revenues of Bengal caused an artificial boom, which inflated the price to £233. This was followed by a fall of 60% as a result of war in the Carnatic. From 1779 to 1788 the price was much more reasonable. It averged about £150, although at the crisis of 1784 it fell as low as £118.10 s. 0 d. After Pitt’s Act prices improved and by 1787 it was quoted at £185.10 s. 0 d. Subsequently the fluctuation’s laregely decreased. The Company was now a sovereign ruler than a trading Corporation. It paid a fair interest to its shareholders and its stock was quoted at a price which represented the capitalized value of its profits. There was no further scope for speculation. Its balance-sheet began to resemble the Indian Budget of later years.” 3 Dividends paid to the share-holders will also indicate how much India contributed to the wealth of England. “Before the union of 1709 the trade, though subject to great fluctuations, always showed a great profit. In 1682, the dividend reached the enormous figure of 160% but at the end of * Inserted—ed. 1. “Discourse of trade” (1775), pp. 8, 9, 10. 2. T. B. Macaulay, “History of England” , Chap. III. 3. F. P. Robinson—“ East India Company”, p. 161.

61INDIA ON THE EVE OF CROWN GOVERNMENT the century, things were very different. In 1709, after the union, it was only 8% rising, in 1710 to 9% and two years later to 10%, the average rate during the century would work out at about 9% and it only rose above from 1768 to 1771. In 1723 a slight fall was caused by the competition of the French Company, and a further fall of 1% followed an increase of capital and the foundation of the Swedish Company in 1732. In 1744, it rose again to 8% and continued at this rate for eleven years in spite of the continual war both in Europe and in the Carnatic. In J 755, the unsettled condition of the affairs at last had effect and a fall of 2% resulted. In 1760, the cession of Burdwan and other provinces increased the working costs of the Company, and kept the dividend at 6%, so that the sum distributed annually was £1,91,644. In 1767, in consequence of the acceptance of the territorial sovereignty of Bengal, the dividend was raised to 10% and the amount distributed reached £3,19,408. This rise was quite unjustifiable and was largely due to the exaggerated estimate of the prosperity of India. The increased dividends declared in anticipation of large profits which were never fully realized, were paid by means of loans raised at exhorbitant interest. For five years the Company hung on in the hope of better days but in 1772 the crash came and the dividends fell from 12 1 2 % to 6%. Lord North then intervened and, for the future, the Company’s dividend was subject to ministerial control. The Regulating Act was followed by revenue prosperity and the dividend continued to rise slowly. In 1792 me conclusion of the peace with Tipoo, whereby the Company received a revenue of £2,40,000 and an indemnity of £l ,600,000, was followed by a further rise of 2% and in 1802, the dividend reached 11%.” 1 Besides this, “the sums of money paid to the (English) public by the United Company of Merchants of England trading to the East Indies, for their privileges, etc.,” “between the years 1798 to 1803 have been estimated by Mr. Macpherson at £25,343,215.” 2 Not only India has helped England in her war with America by taking the harden of £3,858,666 but has helped towards the furtherance of Education in America for Mr. Yale founded the Yale College after his name from the money earned exclusively in the Indian Trade. 1. F. P. Robinson—“ East India Company”, pp 159, 160, 161. 2. cf.. “European Commerce with India” (1812), Appendix No. II.

62 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES Some of the direct and indirect advantages to England from India may be noted in the words of St. George Tucker who says:— (1) “The East India Company have, at different periods, drawn, a surplus revenue from their territorial possessions to the extent of a million and a half sterling per annum after paying the interest of the territorial debt and this surplus was evidently a direct tribute from India to England.” (2) “About four-fifths of the territorial debt being held by European British subjects, a large proportion of the annual interest, amounting to near two million sterling may be regarded as an indirect tribute paid by India to the mother country.” “This indirect or private tribute” including the savings, the profits of commerce, etc., Tucker estimates at “three million sterling per annum at the present period” (i.e., about 1821). (3) “The Shipping of India (that is, the India built ships which are employed in carrying on the trade from port to port in the (eastern Seas) forms no inconsiderable portion of the whole tonnage of Great Britain. (4) “The possession of India furnishes a most convenient outlet for the present overflowing in one class at least of the community, for whom it is found difficult in all countries, and in none more than our own, to make a suitable provision……. The service of India alone opens a field in which they can be employed largely with the prospect of benefit to themselves and to their country.” These do not by any means exhaust the ways by which India contributed to the prosperity of England. Besides these indirect ways, England adopted more direct and drastic measures to harm India. This was effected through the protective system. England was in no way able to compete with Indian goods and as a manufacturing country, India was England’s superior. To destroy the competition of Indian goods which in spite of the cost of transportation ousted the. English goods from their home markets, England adopted a strong protectionist policy. The following figures will indicate how high the tariff against Indian goods was :— Alocs duty p.c. .. 280 Oil of Cinnamon .. 400 Assafoefida .. 622 Mace .. 3,000 Benjamin .. 373 Nutmegs .. 250 Borax .. 102 Olibanum .. 400

63INDIA ON THE EVE OF CROWN GOVERNMENT Cardemoms .. 266 Pepper (black) .. 400 Cassiabuds .. 140 Pepper (white) .. 266 Cloves .. 240 Rhubarb (common) .. 500 Coculus Indicus .. 1,400 Rice (Java) .. 150 Coffee .. 373 Rum (Bengal) .. 1,142 Cubebs .. 320 Sago pearl .. 100 Dragon’s blood .. 465 Sugar (Bengal white) .. 118 Gamboge .. 187 Ditoo (Hudding 128 Gum Ammoniac .. 466 white). Myrph .. 187 Ditoo (low and 152 Nux Vomica .. 266 brown). Oil of Cassia .. 343 But England did not stop with this high tariff. She went a step further and made an invidious discrimination against Indian goods which (bore)* import duty much higher than that on the same goods from other parts of the world. This will become manifest by the import duty figures given by M’Aclloch’s Commercial Dictionary respecting the goods from the East Indies and West Indies and other colonies. Articles East Indies West Indies, etc. £ s. d. £ s. d. Sugar per Qnt. .. 1 12 0 1 4 0 Coffee per Ib. .. 0 0 9 0 0 6 Spirits, Sweetend per gallon .. 1 10 0 1 0 0 Spirits not Sweetened per gallon 0 15 0 0 8 6 Tamarinds per Ib. .. 0 0 6 0 0 2 Succades per Ib. .. 0 0 6 0 0 3 Tobacco per Ib. .. 0 3 0 0 2 9 Wood—teak under 8 inches square 1 10 0 0 10 0 per load. Wood—not particularly enumerat- 20 per cent 5 per cent ed, ad valorem. The English tariff on Indian goods was not not only discriminating but differed with the use to which they were put to in England, as will be seen from the following answers of * Inserted—ed.

64 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES Mr. John Ranking to the questions of the committee of House of Commons in 1813 :— Q.—“Can you state what is the ad valorem duty on piece-goods sold at the East India House ?” A.—“The duty on the class called Calicoes is £3 6s. 8d. per cent upon importation, and if they are used for home consumption there is a further duty of £68 6 s. Sd. per cent”. “There is another class called Muslins, on which the duty on importation is 10 per cent, and if they are used for home consumption, of £27 6s. 8d. per cent. “There is a third class, coloured goods, which are prohibited being used in this country (England), upon which there is a duty upon importation of £3 6S. 8d. per cent; they are only for exportation”. “This Session of Parliament, there has been a new duty of 20 per cent on the consolidated duties, which will make the duties on calicoes….. used for home consumption, £78, 6s. 8d. per cent upon the Muslim for home consumption ;. £31, 6s. 8d.” This much for the Parliamentary Exactions, direct and indirect. The Exactions of the Governors and Governor-Generals were by no means small. It is necessary to recall here the words of Sir W.W. Hunter who, describing the morale of the European people, when they came in contact with India, says, “Europe just emerged from mediaevalism, was then making her first experiments in Asiatic rule. Mediaeval conceptions of conquest imposed themselves on her exploitation of the Eastern world : Mediaeval types of commerce were perpetuated in the Indian trade. Portugal, Spain, Holland established their power in Asia when these conceptions and types held sway. The English ascendency in India came later and embodied the European ideals of the eighteenth century in the place of the European ideals of the sixteenth. It was the product of modern as against semimediaeval Christendom. Yet even for England it was difficult to shake off the traditions of the period… of monopoly in the Indian trade, and of Indian Government for the personal profit of the rulers.” 1 “Self-interest certainly swayed the corrupt and oligarchic legislature, and politics were always discussed on plane from which principles were banished... Men faught avowedly for the most material objects only. Gold ruled the aspirations of the greatest, and India afforded many examples of its fatal power at the time.” 2 1. W, W. Hunter, “A history of British India”. Vol. 1, p. 6. 2. G. B Hertz, “The old colonial system”, p 4.