148 NOTE TO CHAPTER. [Part VII. 



NOTE TO CHAPTEE. 



THE FISH-TAX IN CEYLON. 



In a report -wliich I framed in 1846, on the finances and revenue 

 of Ceylon, I adverted to the characteristic incident alluded to 

 at p. 131, in connection with the fish-tax, to illustrate the 

 caution which it behoves us to exercise in relying on European 

 tlieories when dealing with the habits and customs of an Oi'iental 

 people, whose energies seldom respond to encouragement, and 

 whose apathy prevents the realisation of our most familiar 

 maxims of political economy. In the instance above alluded to, 

 the abolition of the fish-tax had failed to supply a motive for 

 increased activity on the part of the fishermen ; it secured no 

 advantage to the public, whose supply of fish diminished, v:hilst 

 the Bost ivas more than doubled; and it failed to benefit the 

 revenue, since the receipts from the tax fell off nearly one-third. 

 In proof of this I showed, that on an average of four years from 



1830 to 1833, whilst the tax was one-fourth per cent., the 

 average amount of duty was 7389/. From 1834 to 1837, when 

 it was reduced to one-sixth, the average was 6694/., and from 



1831 to 1840, whilst the duty was but a tenth, the receipts fell 

 off to 4821/. 



My report, when laid before Parliament in 1847, was accom- 

 panied by the comment of a Committee, to whom it had been 

 referred by Earl Grey, consisting of Sir Benjamin Hawes, the 

 Eight Honourable H. Tufnell, Mr. J. Shaw Lefevre, and Mr. 

 Bird. On this passage they remarked that my inference was 

 " an obvious mistake," the amounts of revenue as given above, 

 " pro\dng not that there is an3'thing peculiar in the Ceylon 

 fishermen ; but that their trade follows the usual course of all 

 other trades, since with a duty of 25 per cent., the value of the 

 fish taken was - _ > _ _ £29,556 



With a duty of 16 1 per cent. do. - - - 40,164 



do. 10 "do. _ . - . 48,210 



The "obvious error" is, however, in the criticism, and not in 

 my statement, which is strictly correct. Had " the usual course 

 of all other trades" followed the several reductions of the fish -tax, 

 the result would have been an increased demand, creating an in- 



