210 



administration and, with it, of local taxation. The develop- 

 ment of local taxation will also enable Government to call 

 upon Zemindars who have largely benefited by the increase 

 in the value of landed property throughout the country to 

 contribute towards the performance of duties to their 

 tenantry which, it was intended at the time of the perma- 

 nent settlement, they should discharge, but which have 

 now practically devolved on Government. The funds raised 

 by local taxes will probably in no way fall short of the 

 additional revenue obtainable from periodical revisions of 

 assessment at long intervals, while the taxes themselves 

 would be imposed according to the exigencies of each case 

 after full discussion. 



11 . I will now proceed to state the arguments telling 

 against a permanent settlement. When 



Arguments against a ,1 i (• • i. z ' j. 



permlnent settlement. ^^^ schemc tor mtroducmg a permanent 

 settlement throughout the whole of India 

 under the orders of the Secretary of State issued in 1862 

 was abandoned in 1871, the Government of India was influ- 

 enced chiefly by the consideration that the enormous rise in 

 prices and the consequent increase in the rents of the land- 

 holders which had taken place in the decade ending 1870 

 would continue. During that period, while the silver prices 

 of commodities had risen in India, there was no appreciable 

 change in the relative values of gold and silver. After 1870 

 there was a re-action and prices fell considerably. More 

 than 20 years have since elapsed and prices which now rule 

 are still 15 per cent, below the average of the decade ending 

 1870, notwithstanding that the price of silver in terms of 

 gold has fallen by more than one-third. If it were not 

 for the de-monetization of silver in Europe, prices would 

 probably have been 50 per cent, below the average of the 

 decade ending 1870. This shows that the anticipation of 

 continued increase in the rental owing to the general progress 

 of the country has not so far been realized, and, that but for 

 the fall in the price of silver, owing to causes specially affect- 

 ing that metal in its relation to gold, the land-tax would have 

 had to be considerably reduced. The objection to a perma- 

 nent settlement on the ground that it involves a needless 

 sacrifice of certain increase of future revenue has not there- 

 fore much weight; and, as already shown, the additional 

 funds found necessary for meeting the increased cost of 

 adviinistration can be raised by developing the system of 

 *o<\ witMxation. The real objection is that a 'permanent 

 set>d out,'->t of the land revenue will be altogether one-sided. 

 The tuture as regards the value of silver is entirely uncertain 



