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PUBLIC RECORD OFFICE

Reference :-

C.O. 882

4 PUBLIC RECORD OFFICE, LONDON

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with regard to the interest of the subject appointed by of under the instructions of the revenue agent."

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And it is noteworthy that by the 17th clause" All other duties or taxes whatsoever are abolished." It may be said that Government has power to set aside a treaty of this kind by legislative enactment. I must admit that such is the fact. The Sinhalese people, think that a Government like this, which is only a grade better than their old despotism, which is called a "mild despotism," has the power to override treaties. I would rather agree with what has been said by a learned financier, who has considered the proposal of Sir Emerson Tennent, and whose opinions are entitled to much weight. He says: "It is not politic to innovate upon a general and immemorial usage, or to " alter laws possessing much of the force of treaty. It is a matter of the most serious moment in a political or legal point of view to consider whether it is just or right, by "the removal of one class of taxation on the Kandyans under the treaty of 1818, to impose a new tax." Again, "the Government is not entitled in law to make radical changes, sui mero motu, in the fundamental stipulations of what is political convention as well as law." Thus, as regards the Kandyan Provinces, this difficulty stares us in the face, that a general land tax is out of the question. Cui bono. If, too, a land tax were imposed the taxes would have to be taken off toddy, arrack, plumbago, &c. I have travelled fast in making these remarks, which embody my views against the land tax, which would send the cultivator "out of the frying-pan into the fire." What then is the remedy? Farming is utterly indefensible, all are agreed on this point, and I shall not, for obvious reasons, pause to argue the matter. The relief that is to be given should be by commutation. Since that ordinance of Sir Charles MacCarthy's was never brought forward the people have been entirely at the mercy of the Government agents. There is no rule existing to guide them in this matter, I may be asked, "Why do you not commute ?" I will tell you why. The Government agent asks much more than the actual value of the paddy. Say, for instance, I go to the Government agent for the Western Province and tell him I want to commute, and ask him at what rate this is to be done. He makes inquiry, finds paddy is selling in the Colombo market at 3s. 6d. bushel, and says, "At this rate the commutation must be made." Very likely the value per of paddy at that time in the district where commutation is asked for is only 18. 6d., and 500 bushels could be bought at that rate only a few weeks before the rise in the market by the failures in India. (Mr. Wilson: Hear, hear.) And yet we are asked, in the news- papers and elsewhere, why we do not commute? What, then, is the mode devised to give relief? (1.) All lands, Crown lands, to which people have a right of cultivation, and upon which a higher rate than one tenth is leviable, should be sold at easy rates to the people, who might be permitted to pay by instalments. (2.) The duty being equalized, "the Government," in the words of the same great financier, to whom I have already referred," whilst it stands in law upon its right to one-tenth of the gross produce, might "instruct its officers to assess the tax in point of fact on that proportion of the surplus pro- "duce or rent [i.e., the excess over the 1-10th] or even in a lower proportion in the "first instance. In this and other ways the appearance of harshness might be avoided, " and an incentive supplied to the landowners to make speedy composition with Govern- "ment for a term of years, rather than run the risk of tempting and provoking it by recusancy and suspense to insist on its full legal demand by a direct official visitation, or by the still more cogent agency of a farmer." And, again, "In order to obviate "all risk of encroaching on native rights a broad margin of waste, though always well "defined, might be conceded at a nominal tax to every cultivated estate or settled village. The rights of common and pasturage might also remain on their present footing, provided no claim to large timber and proprietary right in the land was "involved in them." This equalization of duty could be arranged by carrying out the principles laid down by Manu, by Boyd, and by Bertolacci. (3.) Where the cultivator loses his crops we ought to do what done in India. Here I quote again from the authority already cited: "Bad and unequal seasons and epidemics affecting man and "beast act in a similar manner. The landowners or cultivators may be poor, improvi- dent, and unable to pay for each year the average of several years. It may be easier "for them to pay nothing in bad seasons and a great deal in good, than to answer a rigid demand for a fixed yearly contribution, be it ever so moderate. In these cases, happily exceptional, the Government in India stands by or reverts to its common law "right of a share of the actual produce." (4.) Under such terms compulsory com. mutation may not be felt; the loss and gain will be equally borne by the Crown and the cultivator, while a great incentive would be given to industrious habits. (5.) Among exemptions from taxation should be hill paddy, which will be no great loss after the

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prohibition of chena cultivation. And (6) provision for payment in all cases should be I have thus shown, Sir, that a land tax is impolitic, and also the grounds upon which relief may be given. These are some of the matters which I submit might be inquired into by the Commission, and if, in addition, seeing how much it is bound up with this subject, the unpaid headmen can be taken hand, great good would result. I do not think the recommendations of the Commission are likely to result in loss to the revenue of this island, but that it will be conserved, while the position of the people will be improved.

The Hon. D. Wilson seconded the motion. The hon. and learned gentleman had spoken to him some weeks ago on the subject, and had said he was anxious to bring forward a motion about the paddy tax. He (Mr. Wilson) replied that he had long wished to bring forward a similar motion, but he did not know how to get at the ins and outs He therefore of the question. He knew there was great discontent on the subject.

was quite ready to say that if a motion for appointment of a Commission of inquiry were made he should be glad to second it. As to the land tax it would be objectionable, and probably cause a disturbance; it would be opposed by natives in every part of the island. Commutation ought to be made easy and tempting to the people, instead of their being driven away from it, as was now the case.

The Hon. Mr. Mitchell said the subject was one in which he felt a great deal of

it. interest, and he should like to speak upon He would therefore ask that the subject might be adjourned till the next meeting of Council. Important papers had been pro- duced which had only been in the hands of hon. members for a few days, and, for his own part, he had been so much occupied with the Supply Bill report that he had not been able to make himself acquainted with the subject as he wished. There was a large number of notices on the order of the day, and be thought it would be desirable if the motion were postponed.

H. E. the Governor: I must remind the hon. member that we are now only consider- ing the appointment of a Commission, we are not inquiring into the details of the subject. As the hon. member is not prepared to discuss the question now, and we are only dealing with it in its initiatory stage, we need not trouble ourselves to-day so much about general principles. The subject will have to come on for very full discussion when the report of the Committee is brought forward,

The Colonial Secretary said he was prepared to leave it to the sense of the Council as to whether an adjournment of the discussion on this motion should or should not take place. As His Excellency had remarked they were not now dealing with, or rightly discussing, the principle of a land tax, or other alternative mode of raising revenue. The question now before the House was that a Commission be appointed. Allowing that a Commission would be appointed and its report was presented to this Council, hon. members would then be in a position to deal with the matter in its entirety. Then, rather than the present time, was, in his opinion, the right occasion to discuss the question. Government was quite willing to grant the Commission, and he (the Colonial Secretary) had no doubt it would be the means of eliciting most valuable information.

Such being

the case, he thought further and full discussion should be left till the report was before hon. members, and that an adjournment at this stage was quite unnecessary.

The Hon. Mr. Mitchell said on that understanding he would withdraw his suggestion for adjournment, and reserve his remarks until the report of the Commission was before the Council. He was glad Government had agreed to a Commission as he thought the question should be inquired into and fully considered.

The Hon. Sir Coomaru Swamy said if he refrained from speaking on the motion just made, possibly he might be considered as being indifferent to it. That he took a deep interest in it was evident from the motion made by him on the 4th of October this session in the following terms :--

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"That returns and reports from Government agents and others on the subject of the commutation of the paddy tax, and on the evils of the renting system, and the expediency. ^\

of perpetuating a system of commutation, be laid upon the Council table.”

It was his intention, as he then expressed, to have discussed the subject, after the papers called for by that motion were produced. There was, however, some delay in doing this (they were laid on the table only to-day), and his hon. and learned friend naturally took alarm at it and gave notice of this motion, with the view of discussing it before the session He was glad of this, as it showed that it was a matter affecting all classes of the community, and that it was not a crotchet of any individual member of this Council He was also happy to have learnt from the Colonial Secretary that the Government will accept the motion. It seemed to him that the points for the consideration of the Council C. 4

was over.