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Extracts, at some length, will now be given from the report of Earl Grey's Committee, and from a subsequent report of the Lords of the Treasury, and of a despatch of Lord Grey transmitting both reports to Ceylon, because Lord Torrington's financial policy was, undoubtedly, founded upon them, and because they furnish, in effect, the text on which Mr. Wodehouse's minutes were the commentary; and this part of his case has been supposed to turn mainly on the agreement or discrepancy between these minutes and his evi- dence and also because the extracted documents tend to show how far his "free agency" might be either controlled or influenced by them.
The Committee, after discussing the plan pro- Report posed by the Committee of the Legislative Council of Ceylon in 1841, to relieve the rice consumer by improving roads, rather than by reducing the import duty on rice, decided against this plan, and in favour of Sir E. Tegnent's suggestion to reduce the duty from 7d. to 4d. per bushel on rice, and from 3d, to 2d. per bushel on paddy.
The Committee also agree that the assessment on rice and paddy cultivation "is most objectionable in principle, and ought to be abolished as soon as it may be possible to substitute for it a general land- tax, based on a mixed calculation of the price now paid for paddy and rice lands, and the amount to be paid for other lands in the colony.”
On the question of the cinnamon export duty, after noticing that the propriety of reducing, or altogether abolishing this duty, has been repeatedly under consideration, and that the Treasury have constantly refused their sanction to such a measure, on the ground of the loas to the revenue, they say, “The time, however, has now arrived when a final settlement of this question can no longer be post- pome:1." They “doubt whether the present export duty on Ceylon qinnamon can safely be main- taimed;" and conclude thus:
We have already stated, with sefareneo to the tax now mised on fields cultixated in ripe and paddy, that we
• This refers to a report made by a Select Commition of the The Committee consisted of six; the Legislative Council. names of Ave members are appended to the report. Mr. Woda- house was a member, but his name is not appealed.—-Bagers, of Earl Grey's Committes, April 18, 1847, page 109.
Evidence 1850.- 4551.
Vide suprà, page 2.
of Earl Grey's Committee
April 13, 1847.
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PUBLIC
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April 13, 1847.
Report of Earl Grey's Committee, approve of the substitution for that tax, of a general or special land-tax, as the case may be, calculated on the amount now paid for that description of cultivation, and on the burthens imposed on other lands in the colony. We think that the same course should be adopted in regard to cinnamon; and we shall hereafter explain the measures necessary for the previous survey of the cinns- mon gardens, and the amount of tax to be imposed on them. At present it is sufficient to observe that, as by the regulations in force, a notice of ten months is required before any alteration can be made in the cinnamon duties, it would, under any ciroumstances, be impossible to apply the change of system to the present crop, and the delay thus necessarily interposed will, we trust, afford sufficient time for arranging the details of that change; but, if these arrangements cannot be completed within that time, we think that the abolition of the emport duty should be post- poned, and that, under any circumstances, the abolition of that duty, and the substitution for it of the land-tan, should be simultaneous.
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As to the abolition of the duty on all exports besides cinnamon,—
We concar in Sir J. E. Tennent's recommendation; but, as in the case of cinnamon, it would be necessary that the export duty on coffee should be maintained until the necessary arrangements for levying the tax to be substituted før it shall have been completed,
*
As to the import duties, other than on rice, they
agree in the propriety of equalising the duties on
British and Foreign goods;" but cannot recommend
that this should be done by any addition to the
existing duties on British goods.
As to the Commissariat Department, the Com- maittee
Think it would be desirable at once to discontinue the civil branch of this department.
To the tax on Koenoor to keep arms we offer no objes- tion; but before any conclusive step in talen, the Govern- ment should, we think, institute an inquiry as to its probable effect.
The tax on carriages and horses appears to the Committes more open to question.
to
The Committee then explain their views “ the description and amount of tax to be imposed on all lands in the solony." With respect to the agency by which the measure is to be completed, they---
Strongly recommend that endeavostra should be made to obtain the service of one or two of the civil servants of the East India Company, who have been' employed in the
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conduct of the settlement lately completed for the north- Report of Earl Grey's Committee. west provinces of Bengal.
In respect to the roads we would limit their functions (that is, of proposed municipal bodies], in the first instance, to the construction and maintenance of the subordinate lines of communication.
April 19, 1847.
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