the time in India, and he was blamed for not taking more effectual measures to restrain his subjects from assisting the enemy. But in such matters even an Amir's power is limited, and there is no reason to doubt that he was friendly to us throughout and did all that he could.

IV. THE NORTH-WEST FRONTIER.

The most important events during 1908 were the expeditions against the Zakka Khels and Mohmands, which were admirably planned and carried out by General Sir James Willcocks and the force under him, and were crowned with complete success. The raids by the Zakka Khels, which had given much trouble in the latter part of 1907, were repeated in January, 1908. On February 3, General Willcocks was informed by telegraph that a punitive expedition had been sanctioned by the Secretary of State for India, and the mobilisation and preparations for it were made with such secrecy and celerity that when the force left Peshawur on February 14 and entered the Bazar Valley by three separate routes the Zakka Khels were completely taken by surprise and could offer but little organised resistance. By February 17, the three columns had united at Walai, which was made the headquarters of the force, and from there flying columns were despatched in all directions to destroy towers and disperse any force which the enemy might collect. On February 27, a Tribal Jirgah of all the Afridi clans, including 300 Zakka Khels, came into China with flags of truce, and in a public Jirgah held next day they promised to punish individual leaders and to be responsible for the good behaviour of the Zakka Khels generally. As a guarantee of their good faith they deposited fifty-three rifles of English manufacture. As these terms more than complied with the demands of the Government of India they were accepted. As soon as the agreement was signed orders were issued for the withdrawal of the troops. The evacuation of the valley commenced next morning and by March 2 the troops had returned to Peshawur.

Whilst the expedition against the Zakka Khels was in progress the Mullahs were exciting the Mohmands to come to their assistance. A considerable number of them collected for this purpose; but, before they could do anything, the Zakka Khels had submitted. The Mullahs, however, continued their agitation, and towards the end of April a body of some 7,000 Mohmands assembled on the British border, and even crossed it. They were repulsed without difficulty, but an expedition to punish the tribe generally became clearly necessary. On May 12, a force of three brigades under General Sir James Willcocks assembled at Shabkadar and passing through the western valley occupied by the Gandao Halimzais, who were friendly, entered the country of the hostile Mohmands by the Nahakki or eastern pass. The whole of the Mohmand territory was overrun, and

forts and towers were destroyed. On May 22, whilst a portion of the force was preparing to attack the strong position of Lakarai Kotal, ten miles north of the Nahakki Pass, the tribesmen submitted and accepted General Willcocks' terms. The British force returned by the eastern valley and the Swat River, shelling on the way a gathering of Utman Khels who still maintained a threatening attitude. Peshawur was reached on May 31, and the expeditionary force was at once demobilised. Although there had not been much serious fighting, the difficulties the troops had to contend with can only be realised by those who know what the country is like at the end of May.

In August there was a somewhat serious raid on the Peshawur border by some of the Mohmands, believed to be Utman Khels. A Jirgah of the tribe generally at once proceeded to Peshawur to express their regret to the Chief Commissioner and to repeat their assurances that they would do their utmost to stop raids and punish the offenders. The difficulty of doing this arises from the fact that the friendly Mohmands who occupy the territory lying along the border are the weakest and least warlike sections of the tribe.

Early in January a most daring raid was made by a party of Mahsud Waziris on the village of Dial, which is only six miles from the cantonment of Derah Ismail Khan, where there is a force of some 3,000 men. The raiders had to cross some fifty miles of British territory; and so rapid and secret were their movements that they were able to do this without being intercepted. There was no reason to suppose that the general body of the Mahsuds were implicated in the raid. In June three raiders were killed in an attack on a post in South Waziristan, one of whom was identified as Mianji Abdurrahman, a notorious raider who had been expelled from his tribe.

V. BRITISH INDIA.

(1) FINANCE.

Owing to changes in the mode of keeping the accounts, which were explained in detail by the Financial Member of Council, and to the omission from them of the income and expenditure of local and district boards, the figures in the statements presented to the Council in March, 1907, underwent a considerable change, and the figures for the three years dealt with in the statements presented in March, 1908, were as follows:—

Accounts for 1906-7.-The actual Surplus was 164,5367. in excess of the Revised Estimate. The Revenue was 49,0881. less

than had been anticipated, owing to a falling off in the receipts from Land Revenue, Excise, Forests and Postal Services, but there was a considerable increase under the heads of Opium, Salt, Customs, and Army. The increase under Salt was due to large clearances in the last twelve days of March, owing to the further reduction in the duty, which took effect from March 20.

Revised Estimate for 1907-8.-By the Revised Estimate the Surplus of 774,600l. anticipated in the Budget was reduced by the famine to 235,400. The Revenue decreased by 1,510,8007., the Expenditure by 971,600l., of which only 462,500l. was a real decrease, the rest being due to the change in the method of keeping the accounts. In the Revenue Receipts there were increases under Opium, Salt, Stamps, Customs, Assessed Taxes, and Mint, and decreases under Land Revenue, Forests, Miscellaneous and the net earnings of Railways. The estimated price per chest of Bengal Opium was Rs. 1,250; that actually obtained was Rs. 1,350, and this increased the Revenue by 45 lakhs. There was also a revival in the Malwa opium trade, which gave a further increase of 10 lakhs. The increase under Salt was only 46,9007.; it would have been greater but for the clearances mentioned above. The reduction of the duty has caused a marked increase in consumption, for whilst between 1897-8 and 1902-3, when the duty was Rs. 24 per maund, the increase was only 24 lakhs, between 1903-4 and 1907-8, during which period it had been gradually reduced to R. 1 per maund, the increase was 74 lakhs. But the reduction has been costly; in 1902-3 the Salt Duty produced 6,184,400l. and in 1907-8 it only produced 3,336,900. The Customs Revenue was 55 lakhs in excess of the Budget Estimate and nearly 92 lakhs in excess of the actual receipts of 1906-7. The imports of cotton piece goods were unprecedentedly large and produced 15 lakhs more than the Estimate, whilst the excise duty on cotton goods manufactured in India amounted to 32 lakhs, the highest figure on record. The great decrease of 1,750,000l. in the Land Revenue was of course due to remissions and suspensions on account of the famine. Down to October, 1907, the Railways did extremely well, and the net receipts were more than 94 lakhs in excess of the Estimate. But from November the scarcity and high prices in Northern India produced an almost complete stoppage of the export of wheat, and although it was still hoped that the gross earnings would exceed the Estimate, the working expenses had been unusually heavy and the net earnings were expected to fall short of the Estimate by 54,4007.

Of the expenditure, the increase under interest, so far as it was real, was due to the fact that the sterling loans raised during the year aggregated 8,500,000l. as compared with the forecast of only 3,500,000l., while the rate of interest was 3 per cent. instead of 3 per cent. For the direct relief of famine only a little more than 9 lakhs was provided in the Budget, but in the Revised Estimate this sum had to be increased to 771⁄2 lakhs.

Of the large saving of 758,600l. under Army, 256,000l. was chiefly due to a decrease in the sum payable to the War Office in England. The rest arose from the postponement of various schemes connected with the reorganisation of the Army, including the re-armament of the Horse and Field Artillery, some because they were not ripe for execution and some merely to effect a saving. It was estimated that the cost of the Bazar Valley expedition would be 50,000l. falling within the year 1907-8, and 6,7001. in the following year.

Budget Estimates, 1908-9.-The total revenue was estimated at 73,438,9007, yielding a surplus of 571,500l. The whole of the Estimates were framed on the expectation that the monsoon would be normal. It was thus assumed that the Land Revenue would be 1,435,2001. in excess of the Revised Estimate for 1907-8 and a little more than the amount actually collected in 1906-7. It was similarly assumed that the net earnings of the railways would no longer be affected by the famine, and that they would amount to 800,100l. more than the Revised Estimate of 1907-8, the figure taken, 13,729,500l., being only slightly in excess of the Budget Estimate for that year. The net revenue from opium was estimated at 503,29 lakhs as compared with 534 lakhs. in 1907-8, the average price per chest being taken at Rs. 1,300. To assist the Government of China in its efforts to check the opium evil the Government of India agreed to limit the export of Bengal opium to 61,900 chests in the calendar year 1908, and further to reduce the number by 5,100 chests in each of the two succeeding years. In furtherance of this agreement the area under poppy cultivation in the Bihar and Benares Agencies was to be reduced from 845,000 to 800,000 bighas (about 400,000 acres). What further steps will be taken after 1910 will depend on whether China in the interval has effected a proportionate reduction in its own production of opium. A normal development was allowed for under Salt, Stamps, Excise, Customs, Assessed Taxes, Post Office, Telegraphs and Civil Departments generally.

Under expenditure there was a large increase of 995,2001. for the Civil Departments. Of this 301,100l. was for police to enable the Local Governments to carry out the recommendations of the Commission as sanctioned by the Government of India; the greater part of the increase of 280,000l. under "Medical" consisted of the special grant of 30 lakhs made to Local Governments. to improve the sanitation of large towns as a protection against plague; there was also an increase of 183,2007. in the grant for education. For Famine Relief a provision of 132,07 lakhs was made. The expenditure on public works was to be reduced by 224,700., chiefly in Bengal, Burmah and the Punjab. The Estimate for military charges was 233,9007. in excess of the Revised Estimate of 1907-8, but 524,700l. less than the Budget Estimate of that year and 831,7007. less than in 1906-7. This reduction was chiefly due to the restriction of the grant for

special" expenditure on improvement of the Army to 2 crores with no regrant for lapses. In the ordinary cost of the Army there was an increase of 130,000l. on account of the high prices of food.

Military Expenditure.-Out of the 23 crores or 1,666,700l. provided for "special" grant, about two-thirds will be required for recurring expenditure on measures already brought into effect, and the provision for new expenditure on measures for the improvement of the Army is therefore limited to 1,000,000l. The bulk of this sum will be required for work already in progress and the amount available for new works will therefore be but small.

Railways. On March 31, 1907, the length of open lines was 29,303-37 miles. To this 985 16 miles were added in 1907-8, and it was hoped that 921-35 more would be added in 1908-9. The amount provided for construction in 1907-8 was originally 9,000,000, to which another million was added on the recommendation of the Railway Finance Committee. For 1908-9 10,000,000l., has again been provided. The Secretary of State has appointed a Committee in London to consider the best mode of raising money for Indian railway construction and extension. As stated with reference to the Revised Estimate for 1907-8 the net earnings of the Railways were greatly reduced by the famine in Northern India, and a strike on the East Indian Railway in November, 1907, is estimated to have caused a loss of 15 lakhs. The return on the capital at charge amounts to 5:17 per cent., as compared with 5:38 per cent. in 1906-7 and 5.56 per cent. in 1905-6.

Irrigation. On March 31, 1907, there were open 55,928 miles of main and branch canals and distributing channels commanding 50,000,000 acres of cultivable land. It was expected that on March 31, 1908, the miles open would be 56,882 and the area commanded 50,195,000 acres. The Revised Estimate of 1907-8 showed a profit of 194 lakhs on productive works, and a net return of 8-17 per cent. on the capital outlay.

Capital Account.-For expenditure not chargeable against revenue the requirements of the Government of India were: Railways, 10,000,000l.; Irrigation, 1,000,000l.; Discharge of Permanent Debt, 950,400l.; Loans to Local Bodies, 207,2001.Total, 12,157,600l. To meet this the funds available were the surplus of 571,500l.; out of the sterling loan of 5,000,000%. raised in England in January, 1908, 746,000l.; the net receipts of the Post Office and other Savings Banks, 453,500l.; the net receipts under Deposits and Remittances, 523,8007; profits on rupee coinage, 666,700.; to be raised by Railway Companies, 4,900,000l.-Total, 7,861,500l. This left a deficiency of 4,296,100, which it was proposed to cover by raising a loan of 3 crores of rupees or 2,000,000l. in India and 500,000l. by temporary India Bills in England, the remaining 1,796,1007. being met by a reduction in the cash balances, which were expected to stand