Our trade

were despatched to the East by the Company, with £62,490 in precious metals and £28,508 in goods; the proceeds, brought back in a single ship, were sold for £108,887. The English made no great advance in trade during the 17th century. By the massacre of Amboyna (1623) the Dutch drove us out of the Spice Islands, and the period of great establishments (aurangs) for weaving had not yet commenced in India. Early in the 18th century, our affairs improved. During the advances, twenty years ending 1728, the average annual exports from 1700-64. England of the East India Company were £442,350 of bullion and £92,288 of goods. The average imports were valued at £758,042, chiefly consisting of calicoes and other woven goods, raw silk, diamonds, tea, porcelain, pepper, drugs, and saltpetre. In 1772, the annual sales at the India House reached the total value of 3 millions sterling; the shipping owned by the Company was 61,860 tons. From 1760 onwards, the Custom House returns of trade with the East Indies are given in Macpherson's History of Commerce. But they are deceptive for comparative purposes, as they include the trade of China Statistics as well as of India. In 1834, when the Company's trade for 1834 with China as well as with India ceased, the total exports from India were valued at £9,674,000, and the imports at £2,576,000. Shortly after that date, trade was freed from many vexatious restrictions. Inland duties were abolishedin Bengal in 1836, in Bombay in 1838, and in Madras in 1844; the sugar duties in 1836, and the cotton duties in 1847; the navigation laws were repealed in 1848. The effect of these reforms, and the general progress of Indian commerce, may be seen in the table on the next page, which exhibits the foreign trade of the country and its chief items, in millions sterling, for each of the eight quinquennial periods between 1840 and 1879.

Inland duties abolished, 1836-48.

Before, however, entering on the items of Indian trade, I ought to explain the method which I have adopted in dealing with them. Many of them may be regarded as agricultural productions, as manufactures or native industries, and as articles of export or internal trade. In such cases I have deemed it best to deal with them in each of these aspects, even at the cost of repeating myself. Thus cotton is treated of alike in the agricultural section, and in the trading and manufacturing sections. In so doing I have not shrunk from repetitions which might be convenient to those who wish to consult the individual sections, without the necessity of reading the whole book.

FOREIGN TRADE OF INDIA FOR FORTY YEARS, CLASSIFIED ACCORDING TO QUINQUENNIAL PERIODS, IN MILLIONS STEKLING.

of its

The preceding table shows a rapid and steady growth, Steadiness which only finds its parallel in the United Kingdom. The growth. exceptional imports of silver from 1855 to 1859 were required to pay for the Mutiny; those from 1859 to 1864 represent the price of the cotton sent to Manchester during the American war.

statistics

Before examining in detail the history of some of the chief Indian staples of trade, it may be convenient to give in this place trade the statistics of a single year, 1877-78, which was a year of for 1878. inflation, despite the incidence of famine in Southern India. In 1877-78, the total sea-borne trade exceeded 126 millions sterling in value. The transactions on behalf of Government, such as stores, equipments, and munitions of war, show an import of £2,138,182, and an export of £36,615. The imports of merchandise were £39,326,003, and of treasure £17,355,460; total imports, £56,681,463. The exports of merchandise were £65,185,713, and of treasure £2,155,136; total exports, £67,340,849. These figures exhibit an excess of exports Excess of over imports amounting to £10,659,386; and an excess of exports. treasure imported to the amount of £15,200,324. By far the larger share of the total trade, amounting to 61 per cent., is conducted with the United Kingdom; next comes China, with 13 per cent. ; and then the following countries in order: -France, Straits Settlements, Ceylon, Italy, United States, India's Mauritius, Austria, Persia, Arabia, Turkey, Egypt, Australia, chief Aden, East Coast of Africa. The total number of vessels that entered and cleared was 12,537, with an aggregate of Indian 5,754,379 tons, or an average of 459 tons each. Of the shipping.

customers.

Trade in 1880.

total tonnage, 76 per cent. was British, 7 per cent. British Indian, and 15 per cent. foreign; American, Italian, and French being best represented in the latter class.

In 1880, the total sea-borne trade exceeded 122 millions sterling. The imports included 41 millions of merchandise, 11 millions of treasure; total imports, 52 millions sterling. The exports consisted of 67 millions of merchandise, and 2 millions of treasure; total exports, 691 millions sterling. Surplus of exports above imports, 16 millions sterling.

The following tables give the principal items, together with the totals, of import and export for 1877-78, showing the quantities wherever possible, as well as the values. I shall then examine in detail some of the chief articles of import and export; although in so doing I shall have to travel over ground already entered on, in the agricultural sections of this volume. FOREIGN TRADE OF BRITISH INDIA FOR 1877-78.

imports.

IMPORTS.-As regards the imports, the first thing to notice Analysis is the enormous predominance of two items-cotton goods of Indian and treasure. During the last forty years, cotton goods form 33 per cent., or exactly one-third of the total, and treasure an additional 30 per cent. Next in order come metals (copper, which is largely used by native smiths, slightly exceeding iron); Government stores, including munitions of war, boots, liquor, and clothing for soldiers, and railway plant;

History of

cotton

goods trade:

Manchester, 1641;

Cotton

liquors, entirely for European consumption; coal, for the use of the railways and mills; railway plant for the guaranteed companies; provisions, machinery, and mill-work, and manufactured silk. It will thus be seen that, with the single exception of Manchester goods, no articles of European manufacture are in demand for native consumption, but only for the needs of our civilised administration; and no raw materials, except copper, iron, and salt.

England's export trade to India thus mainly depends upon piece-goods. In the beginning of the 17th century, the industry had not been introduced into England. The small British demand for cotton - goods or calicoes was met by circuitous importations from India itself, where cottonweaving is an immemorial industry. In 1641, 'Manchester cottons,' in imitation of Indian calicoes and chintzes, were still made of wool. Cotton is said to have been first manufactured in England in 1676. To foster the nascent industry, a succesintroduced sion of statutes were passed prohibiting the wear of imported 1676. cottons; nor was it until after the inventions of Arkwright and others, and the application of steam as a motive power, had secured to Manchester the advantage of cheap production, that these protective measures were entirely removed. In the present century, Lancashire has rapidly bettered her instructors. During the five years 1840-45, the annual import of cotton manufactures into India averaged a little over £3,000,000 sterling. In each subsequent quinquennial period, there has been a steady increase, until in the year 1877-78 the import reached the unprecedented total of £20,000,000 sterling, or an increase of more than sixfold in less than forty years.

Cottongoods imports,

1840-78.

Imports of

treasure.

The importation of treasure is perhaps still more extraordinary, when we bear in mind that it is not consumed in the using, but remains permanently in the country. During the same period of forty years, the net import of treasure, deducting export, has reached the enormous aggregate of 319 millions sterling, or more than £1, 6s. 6d. per head of the 240 million inhabitants of the peninsula. By far the larger portion of this was silver; but the figures for gold, so far as they can be ascertained, are by no means inconsiderable. During Proportion the ten years ending 1875, when the normal value of silver of gold to as expressed in gold was but little disturbed, the total net

silver.

imports of treasure into India amounted to just 99 millions. Of this total, 62 millions were in silver, and 36 millions in gold, the latter metal forming more than one-third of the whole. On separating the re-exports from the imports, the