304 



viz., 5 lakhs of rupees for tlie purpose of agricultural improve- 

 ment cannot be considered extravagant, and the whole of this 

 amount will not be required at the outset. Again, during the 

 last fifteen years, the revenue from excise on country spirits 

 and drugs has risen by nearly 60 lakhs of rupees, and this 

 revenue is drawn from the poorest classes of the population. 

 The object in maintaining the excise duty is not so much a 

 fiscal as a moral one. In these circumstances it is right and 

 proper that a fixed percentage of this revenue should be de- 

 voted to the mental, moral and physical improvement of the 

 classes who contribute it and be expended in the promotion 

 of elementary and technical education and the improvement 

 of sanitation. So far as education is concerned, the expen- 

 diture from Provincial funds has increased within the last five 

 years from 12 to 18 lakhs of rupees and this is so far satis- 

 factory. But in view of the rapid increase of population and 

 the necessity for improving the intelligence of the people and 

 the standard of comfort amongst them, the further advance 

 of education should be recognised as pressing and provided 

 for in the manner above pointed out. 



105. A question that is frequently discussed in connection 

 Encouragement of in- ^ith the encouragemcnt of diversity of 

 dustries by the imposi- occupatious is tlic iostcring of mauufac- 

 tion of protective duties. ^^^^.-^^^ industries by the imposition of pro- 

 tective duties. This measure has often been recommended 

 more especially in connection with the depression of the hand- 

 loom industry which has seriously suffered by the competition 

 to which for several years it has been exposed from the 

 machine-made goods of Manchester. I do not wish to enter 

 into any elaborate discussion regarding this question, but will 

 briefly state whether, and to what extent, the arguments usu- 

 ally advanced in favour of a policy of protection are applicable 

 to the circumstances of this country. It is acknowledged on 

 all hands that from the point of view of indi^^dual consumers, 

 protective duties, if they are to serve their intended object, 

 must enhance the cost of the protected product to such con- 

 sumers, but it is contended that it may be to the interest 

 of a nation to incur this sacrifice temporarily with a view to 

 enable a struggling industry to establish itself on a firm basis, 

 and that when this has been accomplished, the artificial sup- 

 port afforded can and should be withdrawn.. The sacrifices 

 incurred during the period referred to would, in fact, be tanta- 

 mount to an outlay on an industrial undertaking made by the 

 nation, for which an adequate return would be received in due 

 time. Among other arguments for protection, the most cogent, 



