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HIS FINANCIAL REFORMS
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be taken as the charges of establishing the British Power in India, and 50 millions as the price of reconquering and reorganising the Empire after the Mutiny of 1857. The 102 millions represented, however, not alone the cost of wars and conquests. For the English in India had to construct for themselves the whole fabric of a civilised government. That material fabric included roads, public offices, barracks, courts, jails, schools, hospitals; and this vast outlay explains in part the frequent financial deficits to which I shall presently refer. The other debt of 91 millions represented the cost of constructing 4265 miles of opened railway, and of defending great tracts from famine by canals[1]. The two debts aggregated a capital of 193 millions sterling laid out in conquering, establishing, and organising the British India of 1869-70, the first year of Lord Mayo's rule. The revenue amounted to 509 millions of rupees, then equivalent to over 46 millions sterling: namely 33½ millions of taxation from the people, or about 3s. 4d. per head, and 12½ millions from opium, public works, &c., not of the nature of actual Indian taxation[2].

  1. To facilitate reference by the reader I take the above figures as given in the Parliamentary Abstract, Twenty-third Number, 1889, p. 300. But in the subsequent and more detailed statements (except in direct quotations from State Papers), I convert the rupee for the sake of accuracy at 1s. 10d., its value at the time. Where my figures seem to differ from those in certain of the Blue Books, the explanation usually is that the Blue Books take the rupee at its nominal value of 2s.
  2. For details of this calculation, see my larger Life of Lord Mayo, vol. ii, p. 6: 2nd Ed., 1876.