79 



of general administration ; and (5) f million on account of 

 miscellaneous charges including cost of stationery and stores 

 purchased in England for the Government of India. 



(b) The total debt of India amounted at the end of 1889-90 

 to 201 millions, of which 98 millions were in sterling and 

 103 millions Ex. in rupees. The whole of the sterling debt 

 and about 75 per cent, of the rupee debt are held by Europeans. 

 Of the total sum of 201 millions, 122 millions have been 

 incurred for the construction of productive works — 95 millions 

 for railways and 27 millions for irrigation works — the remaining 

 79 millions being incuiTed for the purposes of general admin- 

 istration, principally wars and military defence works. The 

 Government of India has further guaranteed an interest of 5 

 per cent, on capital amounting to 71 millions invested by certain 

 railway companies in railways in India. 



(c) The total outlay on railways in India, whether classed 

 as productive or not, was up to the end of 1890, 213 millions 

 Rx. The mileage open was 16,277, and 2,272 miles were 

 under construction. The net receipts from railways amounted 

 to about 10^ millions Ex. which is 4*8 per cent, on the capital 

 cost. The loss to Government on this account is about 1*8 

 millions Ex., and this is chiefly due to fall in the rate of 

 exchange. During the last 10 years there has been rapid 

 progress in railway construction, the mileage open having 

 increased from 9,000 to 16,500 or by 83 per cent. Eailways 

 cannot be expected to commence ^- to pay until some time 

 after they have been completed, and, as already stated, there 

 is a mileage of nearly 2,500 yet to be completed. Moreover, 

 many of the lines have been undertaken not as paying con- 

 cerns, but for purposes of military defence and famine protec- 

 tion of backward and inaccessible tracts which trade cannot 

 reach when the bullock power of the country for draught 

 becomes paralyzed during times of severe drought. Notwith- 

 standing these drawbacks, the railways as a whole mostly pay 

 their way, and they would fully meet their charges and leave a 

 surplus profit to Government but for the loss by exchange. 

 If the traffic improves within the next 5 or 10 years by 25 per 

 cent., which is not an improbable result, the resulting gain will 

 be such as will repa}^ the entire cost of construction in the 

 course of 50 years and leave to the country a large revenue 

 unencumbered with any charges on account of interest. 



** In 1881, the Government of India laid down that productive public works to be 

 undertakeii'by Government should, if railwaj'S, pay their expenses including interest on 

 capital cost within five years. For irrigation works the period fixed was ten years. 



