for the further development of our
railway system to _bona fide_ private enterprise, aided, perhaps,
where circumstances required it, by Government, but not to the
extension of Government guarantees. Unguaranteed companies cannot get
money while guaranteed companies are competing with them as borrowers.
Therefore, if we intend to encourage the former, we must let
capitalists know that a limit will be put on the operations of the
latter.

[Sidenote: Seat of Government.]

As to the seat of Government question, I am strongly of opinion that
the proper thing to do at present is to give practical effect to the
provision in the Indian Councils Act, which authorises the Governor-
General to call his Council together in other parts of India besides
Calcutta. This would give to the Supreme Government a more catholic
character than it now possesses, and perhaps in some degree diminish
the jealousy of Calcutta influence which obtains so extensively.

I do not see my way towards recommending the entire abandonment of
Calcutta. It is an important place, and has certain traditional claims
which it is not quite easy to set aside. Moreover, although the
Calcutta community may have its faults and wayward tendencies, it is
an influential element in our body corporate and politic, and a
Government which knows its duty may effect a great deal of good, and
derive no little benefit, by coming into contact with it For the
present, therefore, I think that Calcutta should continue to be the
headquarters of Government; but that we should meet from time to time
at other places for Legislative purposes, so as to qualify Calcutta
local associations with other local associations. This plan will be
attended of course with some trouble and expense. I intend to make
some inquiries to ascertain what the latter is likely to be. I do not
see why we should not legislate in camp, if there be difficulty in
providing house accommodation.... I should like, if possible, to hit
upon a plan which would give us a sufficient range in choosing and
varying our places of meeting. More on all this hereafter.

* * * * *

_To Sir Charles Wood._

Roorkee: March 19, 1863.

[Sidenote: Value of training at headquarters.]

I confess I think it very important that the heads of the local
Governments s