CHAPTER VI
Lord Mayo's Financial Reforms
The financial history of Lord Mayo's Viceroyalty divides itself into two parts. The first narrates the resolute stand which, at the outset of his administration, he found himself compelled to make against deficit. The second records the measures by which, after grappling with the immediate crisis, he endeavoured to reform certain grave defects in the financial system, and to bring about a permanent equilibrium between the revenue and the expenditure of India.
When Lord Mayo received charge of the country the financial position stood thus. The conquests and accretions of a century had left behind a British Indian Empire nearly equal in size to all Europe less Russia, with a population of close on 200 millions in our own Provinces, and 50 millions in the Feudatory States. The cost of creating that Empire was represented in 1869-70 by a Public Debt of 102 millions sterling; together with another debt of 91 millions sterling expended on the guaranteed railways and other productive public works. Of the Public Debt, aggregating 102 millions, about 52 millions may
