,000. Now let us examine for a moment the nature of these two
remittances. The Government remittance is mainly for the payment of home
charges--namely, those charges in England which are normally met from
revenue. These charges, in the three years to which I have referred,
averaged L18,250,000, made up in the following manner:--Interest on
debt, L9,600,000; payments for stores, ordered and purchased in this
country, which cannot be manufactured in India, L2,500,000; pensions and
furlough pay to civil and military officers, L5,000,000; and
miscellaneous, L1,250,000. It will thus be seen that alter deducting
L5,000,000 for pensions and furlough pay, the bulk of the remittance
represents interest for railway developments and other matters with
which the interests of the peoples of India are intimately bound up.
Besides the home charges proper, certain sums were remitted to England
by the Government to defray capital charges. These bring the Government
remittances to the total of L21,200,000 already mentioned. Now let us
turn for a moment to the supposed commercial drain of L40,000,000 per
year, which, as I have endeavoured to show, is in reality L2,700,000,
being the difference during the period referred to between the private
remittances from India, representing private profits, savings, &c., sent
home to England, and the private remittances to India representing the
transmission of English capital to that country. We can therefore say
definitely that whatever India may have sent to England within the three
years, she received from England as capital a sum falling short of that
amount by L2,700,000 a year; and perhaps I might incidentally remind the
House that at the end of 1907 the capital outlay on railways alone in
India amounted to L265,000,000 sterling, the bulk of which is British
capital, but by no means represents the full amount of British capital
invested in India, which has taken its part in commercially developing
its resources and providing employment for the masses of people in that
great continent. Hon. members who have followed a recent discussion in
the pages of the _Economist_ as to whether L300,000,000 or L500,000,000
was the amount of British capital invested in India for its commercial
and industrial development and for providing employment of the people in
that land, will agree that the sum could not be placed lower than
L350,000,000."

NOTE 23

THE SECRETARY OF STATE AND THE VICEROY.

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