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No. 2.

GOVERNOR THE RIGHT HONORABLE SIR WILLIAM GregoRY, K.C.M.G., to THE EARL OF CARNARVON.

(No. 16.)

(Received February 20, 1877.)

Queen's House, Colombo, Ceylon,

January 12, 1877. MY LORD,

WITH reference to my Despatch, No. 15 of 9th instant, I have the honour to forward for your Lordship's information the enclosed copy of a resolution by the Executive Council.

The Right Honorable the Earl of Carnarvon,

I have, &c.

W. H. GREGORY.

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like, the letters and newspapers from which all this information is gathered. The planters voted by proxy against Mr. Wall's motion, and of course it was defeated. I fear the selfishness of colonists blinds them to the sufferings of the natives.

The food of the people of Ceylon, or rather half of it, is imported from India. Half the needs of 24 millions of people is adding to the burthen of Southern India, already unable this year to feed its own people. In the interest of India as well as Ceylon, and in accord with the true policy of Governments, I ask you to take decided steps to remove what Sir Henry Ward calls "a blot on the escutcheon of England." Pardon me, and believe me to be yours very truly,

THOMAS B. POTTER.

In Ceylon as in Malta you will have to act yourself, for the powers of resistance to changes are so strong in ignorance and prejudice.

&c.

&c.

&c.

PUBLIC RECORD OFFICE

Reference:

mi

C.O. 882

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

4 PUBLIC RECORD OFFICE, LONDON

Enclosure in No. 2.

EXTRACT from the MINUTES of a MEETING of the EXECUTIVE COUNCIL held at the Queen's House, Colombo, on Thursday the 11th January 1877.

PRESENT:

His Excellency the Right Honorable Sir W. H. Gregory, K.C.M.G. The Honorable Major-General J. A. Street, C.B.

The Honorable A. N. Birch, C.M.G.

The Honorable R. Cayley.

'The Honorable W. D. Wright.

The Honorable A. Y. Adams.

The Executive Council having read His Excellency's Despatch, No. 15 of the 9th instant, are of opinion that the tax on imported grain, and that on grain grown in the island, must stand or fall together; that a reduction on the former would not reach the consumers, and that it would be in the last degree inexpedient and prejudicial to the interests of those whom it is sought to benefit, to sacrifice the revenue accruing from these taxes. They are further satisfied that the only possible substitute for these taxes is a general land tax, and that there are such difficulties in the way of imposing an equitable general land tax and of collecting it, that however commendable it may be in theory, it would be wholly impracticable, and likely, according to the opinion of the best informed natives, to cause general and serious discontent.

With regard to the evils incident to the present system of levying the tithe, they consider that a remedy should be sought for these by encouraging commutation, or where the villagers are unwilling to commute, by offering facilities to them to purchase their

own rents.

The Governor and the Executive Council, however, consider that important informa- tion is likely to be obtained from a Commission about to be appointed to inquire into the custom duties on grain and on the paddy tithe, and that it is possible therefore that in some respects this resolution may be modified.

January 15, 1877.

"True extract.'

»

GEO. T. M. O'BRIEN.

No. 3.

T. B. POTTER, Esq., M.P., to COLONIAL office.

DEAR LORD CARNARVON,

Reform Club Chambers, 105, Pall Mall, S.W. August 17, 1877.

As in duty bound, considering your kind consideration towards me, I send you the first step in my campaign against the paddy tax in Ceylon. 10,000 slips, copies of the enclosed, will be distributed shortly amongst Members of Parliament, noble lords, and the general public, and I really think you should read it. I will send you, if you

• No. 1.

The TAXES on FOOD in Ceylon.

(From the "Sheffield and Rotherham Independent" of August 16th, 1877.)

London, Wednesday, August 15th. A batch of letters from politicians in Ceylon to politicians in London, together with reports of speeches in the island, and other information, on the burning question of the rice taxes and the restrictions on the growth of the food of the people, have been placed in my hands, with a view to the enlightenment and direction, of public opinion in this country on the subject.

The first item is a letter from Mr. George Wall, an eminent merchant of Colombo, addressed to Mr. T. B. Potter, M.P., the hon. secretary of the Cobden Club. Mr. Wall, speaking of the exertions which he and others have made at various times to better the condition of the depressed "paddy" (rice) growers, says that no success has attended those labours so far as they have been directed to the remission of the food taxes, or the abolition of the renting or "farming" of the taxes on home-grown rice. The only success he can record is in the restoration of irrigation works; but he hopes that with the aid of the Cobden Club in England, who have taken up this question, the actual state of the case, and the extent of the mischief of the system will be made known and receive attention in the mother country and in Parliament. One of the peculiarities of the case which Mr. Wall explains is connected with the temporary periodical importation of labour into the island. The planters at harvest time have to attract coolies at such wages as will enable them to buy food, &c., and to save a little to carry back to their own country. When the price of food rises considerably, the planters find it necessary to supply the coolies with food at the normal price, at an apparent loss to themselves. This leads to the statement commonly made that the tax is paid by the planter, and not by the consumer. There are two leading difficulties in the way of the repeal of those taxes, which Mr. Wall explains thus :-"First, the dread of any change on the part of the poor, ignorant native, whose only experience or idea of change is from bad to worse;" and no wonder, if he thinks at all, that the poor native should imagine that a Govern- ment which subjects him to the treatment which he now receives is capable of anything except kindness and relief. So he has a simple dread of some worse things befalling him. In this vague feeling that something terrible might follow an attempt to alter the existing state of things, the unthinking part of the general public and the more intelligent part of the native community agree. Then there is a general idea that the natives are "used" to the present state of things, and acquiesce in it, and that it is therefore a pity to disturb it. The reply to this is that the people, unhappily, have become used to it (as many

of them at least as the system has not already destroyed), and there is neither knowledge in them enough to suggest, nor spirit enough to carry out any plan of agitation. Their acquiescence is that of their helplessness, as a man acquiesces in the removal of his goods by a bailiff. Secondly, there is the difficulty of substituting a tax to take the place of the food taxes. A land tax has been proposed, or at least suggested; and this seems to have been met by universal disapproval. It is evident that a great many of its opponents knew nothing about it. It has, in fact, been made a bogie of by designing people, and a vague dread of it has been but too successfully inspired. It is as clear as day that our success must depend on our being able to substitute a practicable means of raising the revenue, and it is therefore to this subject I am directing my atten- tion. I think I see my way, but the question is not quite ripe for my scheme. I see that the idea of a forced or compulsory commutation of the paddy tax is growing into

A. 614.

F