There is nothing to choose between the records of the two great political parties at home in their treatment of England's financial and fiscal relations with India, and English Tariff Reformers have as a rule shown little more disposition than English Free Traders to study Indian interests. In fact, until Mr. M. de P. Webb, a member of the Bombay Legislative Council, published under the title of "India and the Empire" an able exposition of the Tariff problem in relation to India, very few Tariff Reformers seemed even to take India into account in their schemes of Imperial preference. I hope, therefore, to be absolved from all suspicion of party bias in drawing attention to a question which is, I believe, destined to play in the near future a most important--perhaps even a determining--part in the relations of India to the British Empire.
One of the first things that struck me on my return to India this year--and struck me most forcibly--was the universality and vehemence of the demand for a new economic policy directed with energy and system to the expansion of Indian trade and industry. It is a demand with which the great majority of Anglo-Indian officials are in full sympathy, and it is in fact largely the outcome of their own efforts to stimulate Indian interest in the question. There is very little doubt that the Government of India would be disposed to respond to it speedily and heartily on the lines I have already briefly indicated. Will the Imperial Government and the British democracy lend them a helping hand or even leave a free hand to them? If not, we shall assuredly find ourselves confronted with an equally universal and vehement demand for Protection pure and simple by the erection of an Indian Tariff wall against the competition of imported manufactures. I need hardly point out how the rejection of such a demand would be exploited by the political agitator or how it would rally to the side of active disaffection some of the most conservative and influential classes in India. For if, as those Englishmen who claim a monopoly of sympathy with the people of India are continually preaching, we must be prepared to sacrifice administrative efficiency to sympathy, how could we shelter ourselves on an economic issue behind theories of the greater economic efficiency of Free Trade? If we are to try "to govern India in accordance with Indian ideas"--a principle with which I humbly but fully agree--how could we justify the refusal to India, of the fiscal autonomy for which there is a far more widespread and genuine demand than for political autonomy?