Circular N. 4142 of the Territorial Department Revenue from the Officiating Secretary to the Government at Bombay Castle, Charles Edward Fraser Tytler, to the Resident in the Persian Gulf [‎20v] (30/44)

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any circumstance Government must suffer loss, as it could not expect to obtain the drug so
cheap as individuals.
37. Mr. Pringle's proposition necessarily involved the entire abandonment of two, and
the partial relinquishment of the third, of the objects for which the restrictions on the opium
trade were originally imposed. Instead of checking the inordinate use of the drug, consump
tion was to be encouraged by a considerable reduction of price ; and instead of deriving
revenue, a positive loss was to be incurred in effecting that reduction of price. With respect
to the third, or the protection of our opium monopoly, by preventing Malwa opium being
clandestinely exported to China, our means for accomplishing this wer^ obviously diminished
by concentrating, as the Revenue Commissioner suggested, our efforts to prevent exporta
tion at the outports. Nevertheless, the Government of 1843, fully appreciating the diffi
culties which existed in maintaining the restrictive system, concurred in Mr. Pri ngle's
views. It was observed that the attempt to restrict the retail sale of opium to what is derived
from the Government Stores must fail, and that the idea of deriving a revenue from such
sale must prove fallacious, and if so, ought to be abandoned ; and it was admitted that the
attempt to check consumption in a country where our villages are so much intermixed with
those of Native States must also be equally useless. Thus abandoning the two first objects
of the restrictive system, the Government observed, that in regard to the third, and perhaps
the most important, on the protection of the Bengal monopoly, it must be obvious that if
Malwa opium were allowed free access to the districts in the immediate vicinity of the
outports, we could not. prevent its reaching China. The attainment, of this object, therefore,
was incompatible with the abolition of the restrictions on sale for internal consumption, but
Government were disposed to favour the plan of allowing opium to be imported under
permits from the adjacent foreign villages to he retailed by license, but with a prohibition
against its transit to the coast for exportation. Under this plan the Government depots
might be abolished, the licensed venders obtaining their supplies from the places where it is
produced. The views of Government were communicated to the Revenue Commissioner,
(letter dated the 6th May 1844.) with instructions, unless any objection occurred to him, to
prepare a plan under which Government might withdraw altogether from the supply of the
retail trade, means being at the same time provided against opium imported for internal
consumption being afterwards exported. I have not been able to discover on the records of
Government any reply from the Revenue Commissioner to this communication.
38. That Government was disappointed in its object in deriving a revenue from supply
ing the retail trade in opium is established by a report, dated the 9th August 1844, from the
Accountant General, exhibiting the actual result of our opium transactions for fives years,
namely 1839-40, 1840-41, 1841-42,1842-43, 1843-44. During this period the Government
sustained an aggregate loss in the four Collectorates of Gnzerat, (Ahmedabad, Kaira, Broach,
and Surat,) and in Kattiawar, of Rs. 47,654-13-5, and to this must be added the sum of
Rs. 42,948-2-6, the actual amount of loss incurred very lately in the resale of a quantity of
opium of bad quality purchased by the Opium Agent in Bombay for the depot at Ahmedabad.
(Vide letter from the Collector of Customs, dated the 8th May 1848.)
39. An alteration, therefore, in the present system of providing opium for internal con
sumption, seems necessary on financial grounds ; and the only question which arises is, how this
can be effected without giving an impetus to the illicit trade, which there is too much reason
to believe is already very great? On this point a few remarks may be'useful. The existing
checks against smuggling are very defective. Mr. Hamilton, the Resident at Indore, has no
doubt of the existence of an extensive contraband trade. (Letter dated the 22nd August
1844.) The average quantity of opium annually produced in Malwa is estimated at 30,000
chests, of which about one-half was in 1844 exported under passes, and between 4,000* and
5,000 smuggled. To check the contraband trade, the Resident proposed to subject all opium
exported from Malwa to an uniform rate of duty, and to establish a cordon to enforce the
♦ The difference of 10,000 chests is unaccounted for. Is it consumed in Malwa?