i2£( 



The sale of opium -was, till 1880, unregulated, chiefly 

 because it was not generally consumed except for medicinal 

 purposes in the greater portion of the Presidency. , Its use, 

 however, was all along pretty general in the hill tracts of the 

 four northern districts and on the Nilgiris, the drug being 

 considered to be a prophylactic against malarial fever. The 

 poppy plant used to be cultivated, to a small extent, in the 

 hill tracts, but the cultivation has been prohibited since 

 1880. As now a duty is levied on the transport and retail 

 sale of opium in addition to the excise duty, the price of the 

 drug has been considerably enhanced and its consumption 

 has been much restricted. The total quantity consumed 

 throughout the Presidency is only 77,000 lb., of which 

 68,000 lb. forms the consumption of the four northern 

 districts. Of the total number of shops licensed, viz., 1,050, 

 no less than 716 are situated within these districts. 



The total revenue from the excise on spirits and drugs 

 since the beginning of the century has been as follows : 



Million Rx. 



Average of ten years ending 1809-10 ... •06 



It will be seen thab the revenue has risen enormously 

 especially during the last decade, the causes for the increase 

 being, as already explained, not any extension of consumption 

 but the enhancement of taxation. The excise on intoxicating 

 liquors and drugs, from an economic point of view, is a 

 very desirable form of taxation, for whereas all taxes are 

 objectionable, because they restrict production and consump- 

 tion, the objection does not apply to this tax, the restriction 

 of consumption being the very object aimed at in regulating 

 the traffic and the revenue derived being obtained, as it were, 

 incidentally and not being in itself the object. To some 

 extent,^^ the increase in the revenue is an index to the 



^^ The total revenue in this Presidency from excise is 1"2 million Ex. and the 

 total expenditure on drinking may be taken at about twice that sum or 2"4 million Rx. 

 In England the expenditure on drink is enormous, being estimated at 180 milliona 

 sterling. The consumption per head is '96 gallon of spirit, '36 gallon of wines and 26'80 

 gallon of Veer. In this Presidency the consumption per head may be roughly estimated 

 as follows : Spirit "044 gallon ; wines '0001 gallon ; toddy '25 gallon ; beer -025 gallon. 

 In the estimate given above imported liquors are assumed to have been consumed 

 within the Presidency, whereas large quantities of them ar^ exported to Native States, 



