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 that the Native Governments do, in point of fact, realize by such extra cess a large revenue in this way.

Besides it would only be thus that Government could place bounds to an indefinite expansion of the cultivation. And the license would probably also be needed to check smuggling by the cultivator selling the drug to others than licensed manufacturers.

39. Seventh.—The danger from smuggling; how similar danger is met on the Bombay Coast; and what precautions would be required if the pass system were introduced on this side. The possession of opium above a certain quantity, uncovered by a pass or license, would necessarily remain penal as at present; and some additional provision would probably be required for securing the drug while in transit from the cultivator to the manufacturer, and from the manufacturer to the Government scales.

40. The new system would of course be substituted gradually for the old. The Government would thus be able to retire without sacrificing any interest in its outstanding advances, and the market would not be unduly contracted before private capitalists had time and opportunity for supplying by degrees the place of Government. Any sudden change might be followed by disastrous effects upon interests that have grown up on both sides of India under the present system, and which must be respected. Government might withdraw district by district. It might, for example, from the present season, stop advances in the district of Cawnpore and westward. This would be intimated to capitalists, who would thus have the power to enter the field with advances to the cultivators in anticipation of the following year's crop. Meanwhile the Bengal Board would be calling in the out-turn of the crop from the districts in question, raised upon its advances. Thus no risk would arise while the ground was occupied by private speculators pari passu with the retirement of Government. In some districts it is possible that capitalists might be found to take over the lien on the crop by repaying to Government the amount of its advances.

41. The manufactories would be under license, and surrounded by the necessary safeguards. The only weighing office required at first would be at Allahabad, where on payment of the pass duty the export stamp would be affixed.

42. I may mention that when the subject was discussed in 1858-59 by Mr. James Wilson at Allahabad, in personal conference with the Board, the chief objection urged by him was that opium without the guarantee and stamp of the Government would be likely to lose its value in China. But this has not been found the case with Malwa opium, which now bears a higher price in the Chinese market than that manufactured by the Bengal Government. It is true that the opiate in the Malwa drug is slightly stronger than the Bengal standard. Still the fact remains that, without any check or guarantee on the part of Government, the private article succeeds in maintaining its place. Indeed, under an export duty, fixed, and not ad valorem, the manufacturer must have every motive to secure the highest possible excellence of what is exported.