Karl Marx in the New-York Tribune 1857

British Incomes in India

Source: New-York Daily Tribune, September 21, 1857;
Transcribed: by Tony Brown.

The present state of affairs in Asia suggests the inquiry, What is the real value of their Indian dominion to the British nation and people? Directly, that is in the shape of tribute, of surplus of Indian receipts over Indian expenditures, nothing whatever reaches the British Treasury. On the contrary, the annual outgo is very large. From the moment that the East India Company entered extensively on the career of conquest – now just about a century ago — their finances fell into an embarrassed condition, and they were repeatedly compelled to apply to Parliament, not only for military aid to assist them in holding the conquered territories, but for financial aid to save them from bankruptcy. And so things have continued down to the present moment, at which so large a call is made for troops on the British nation, to be followed, no doubt, by corresponding calls for money. In prosecuting its conquests hitherto, and building up its establishments, the East India Company has contracted a debt of upward of £50,000,000 sterling, while the British Government has been at the expense, for years past, of transporting to and front and keeping up in India, in addition to the forces, native and European, of the East India Company, a standing army of thirty thousand men. Such being the case, it is evident that the advantage to Great Britain from her Indian empire must he limited to the profits and benefits which accrue to individual British subjects. These profits and benefits, it must be confessed, are very considerable.

First, we have the stockholders in the East India Company, to the number of about 3,000 persons, to whom tinder the recent charter there is guaranteed, upon a paid-up capital of six millions of pounds sterling, an annual dividend of ten and a half per cent, amounting to £630,000 annually. As the East India stock is held in transferable shares, anybody may become a stockholder who has money enough to buy the stock, which, under the existing charter, commands a premium of from 125 to 150 per cent. Stock to the amount of £500, costing say $6,000, entitles the holder to speak at the Proprietors’ meetings, but to vote he must have £1,000 of stock. Holders of £3,000 have two votes, of £6,000 three votes, and of £10,000 or upward four votes. The proprietors, however, have but little voice, except in the election of the Board of Directors, of whom they choose twelve, while the Crown appoints six; but these appointees of the Crown must be qualified by having resided for ten years or more in India. One third of the Directors go out of office each year, but may be re-elected or reappointed. To be a Director, one must be a proprietor of £2,000 of stock. The Directors have a salary of £500 each, and their Chairman and Deputy Chairman twice as much; but the chief inducement to accept the office is the great patronage attached to it in the appointment of all Indian officers, civil and military — a patronage, however, largely shared, and, as to the most important offices, engrossed substantially, by the Board of Control. This Board consists of six members, all Privy Councilors, and in general two or three of them Cabinet Ministers — the President of the Board being always so, in fact a Secretary of State for India.

Next come the recipients of this patronage, divided into five classes – civil, clerical, medical, military and naval. For service in India, at least in the civil line, some knowledge of the languages spoken there is necessary, and to prepare young men to enter their civil service, the East India Company has a college at Haileybury. A corresponding college for the military service, in which, however, the rudiments of military science are the principal branches taught, has been established at Addiscombe, near London. Admission to these colleges was formerly a matter of favor on the part of the Directors of the Company, but under the latest modifications of the charter it has been opened to competition in the way of a public examination of candidates. On first reaching India, a civilian is allowed about $150 a month, till having passed a necessary examination in one or more of the native languages (which must be within twelve months after his arrival), he is attached to the service with emoluments which vary from $2,500 to near $50,000 per annum. The latter is the pay of the members of the Bengal Council; the members of the Bombay and Madras Councils ... receive about $30,000 per annum. No person not a member of Council can receive more than about $25,000 per annum, and, to obtain an appointment worth $20,000 or over, he must have been a resident in India for twelve years. Nine years’ residence qualifies for salaries of from $15,000 to $20,000, and three years’ residence for salaries of from $7,000 to $15,000. Appointments in the civil service go nominally by seniority and merit, but really to a great extent by favor. As they are the best paid, there is great competition to get them, the military officers leaving their regiments for this purpose whenever they can get a chance. The average of all the salaries in the civil service is stated at about $8,000, but this does not include perquisites and extra allowances, which are often very considerable. These civil servants are employed as Governors, Councilors, judges, Embassadors, Secretaries, Collectors of the Revenue, &c. — the number in the whole being generally about 800. The salary of the Governor-General of India is $125,000, but the extra allowances often amount to a still larger sum. The Church service includes three bishops and about one hundred and sixty chaplains. The Bishop of Calcutta has $25,000 a year; those of Madras and Bombay half as much; the chaplains from $2,500 to $7,000, beside fees. The medical service includes some 800 physicians and surgeons, with salaries of from $1,500 to $10,000.

The European military officers employed in India, including those of the contingents which the dependent princes are obliged to furnish, number about 8,000. The fixed pay in the infantry is, for ensigns, $1,080; lieutenants, $1,344; captains, $2,226; majors, $3,810; lieutenant colonels, $5,520; colonels, $7,680. This is the pay in cantonment. In active service, it is more. The pay in the cavalry, artillery and engineers, is somewhat higher. By obtaining staff situations or employments in the civil service, many officers double their pay.

Here are about ten thousand British subjects holding lucrative situations in India, and drawing their pay from the Indian service. To these must be added a considerable number living in England, whither they have retired upon pensions, which in all the services are payable after serving a certain number of years. These pensions, with the dividends and interest on debts due in England, consume some fifteen to twenty millions of dollars drawn annually from India, and which may in fact be regarded as so much tribute paid to the English Government indirectly through its subjects. Those who annually retire from the several services carry with them very considerable amounts of savings from their salaries, which is so much more added to the annual drain on India.

Beside those Europeans actually employed in the service of the Government, there are other European residents in India, to the number of 6,000 or more, employed in trade or private speculation. Except a few indigo, sugar and coffee planters in the rural districts. they are principally merchants, agents and manufacturers, who reside in the cities of Calcutta, Bombay and Madras, or their immediate vicinity. The foreign trade of India, including imports and exports to the amount of about fifty millions of dollars of each, is almost entirely in their hands, and their profits are no doubt very considerable.

It is thus evident that individuals gain largely by the English connection with India, and of course their gain goes to increase the sum of the national wealth. But against all this a very large offset is to be made. The military and naval expenses paid out of the pockets of the people of England on Indian account have been constantly increasing with the extent of the Indian dominion. To this must be added the expense of Burmese, Affghan, Chinese and Persian wars. In fact, the whole cost of the late Russian war may fairly be charged to the Indian account, since the fear and dread of Russia, which led to that war, grew entirely out of jealousy as to her designs on India. Add to this the career of endless conquest and perpetual aggression in which the English are involved by the possession of India, and it may well be doubted whether, on the whole, this dominion does not threaten to cost quite as Much as it can ever be expected to come to.