Page:The Evolution of Provincial Finance in British India.djvu/29

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THE IMPERIAL SYSTEM
7

therefore seems to be that they forwarded the copies of their proceedings to the Government of Bengal for information rather than for orders. At any rate, such seems to have been the view taken by the Government of Bengal itself, for, though it had the power to issue orders and compel obedience to them it had in practice confined its supervision and control "to pointing out an irregularity and requesting that it be not repeated." More than this was thought inadvisable[1] and it is doubtful[2] whether it would have been constitutional.

The Imperial system of Government was necessarily accompanied by the Imperial sj'stem of Finance. Before fhe inauguration of the Imperial system of Administration rhe several Presidencies were like separate clocks each with its own mainspring in itself. Each possessed the powers of sovereignty, such as the legislative, the penal, and the taxing powers. They were independent in their finance. Each was responsible for the maintenance of services essential for peace, order and good government ivit fin its jurisdiction and was free to find money by altering or levying taxation or borrowing on credit to meet its obligations. For their ways and means they often drew upon the resources of one another, not, however, because their exchequers were not distinct, but because they were parts of a common exchequer belonging to the East India Company. All this was changed by the Act of 1833, which vested the revenues and the government of the different territories in the Governor-General of India in Council. The revenues and the services became by law the revenues and the services of the Government of India. The provinces became the collecting and the spending agencies of the Government of India. They ceased to levy any new taxes

  1. Cf. Min. on the Constitution of the Indian Government by the Governor-Genera1, Lord William Bentinck, dated September 14, 1831. Aldo Memorandum re the same by the Secretary to the Government of Bengal accompanying the despatch of Lord Canning dated December 9, 1859, published in H. of C. Return 307 of 1861.
  2. Cf. the despatch of the Court of Directors to the Government of Bengal No. 44 dated December 10, 1834, original draft in the India Office Records.