Lord Canning did not remain long at Simla. His Council in Calcutta was about to lose its President, Sir James Outram, who was leaving India on account of failing health; and as the suggestion to impose an income-tax was creating a good deal of agitation, the Viceroy hurried back to Calcutta, deeming it expedient to be on the spot.
The measures necessary for the suppression of the Mutiny had emptied the Government coffers; and although a large loan had been raised, the local authorities found it impossible to cope with the increased expenditure. Lord Canning had, therefore, applied to the Government in England for the services of a trained financier; and Mr. Wilson, who had a great reputation in this respect, was sent out. He declared the only remedy to be an income-tax, and he was supported in this view by the merchants of Calcutta. Other Europeans, however, who were intimately acquainted with India, pointed out that it was not advisable to ignore the dislike of Natives to such direct taxation; and Sir Charles Trevelyan, Governor of Madras, argued well and wisely against the scheme. Instead, however, of confining his action in the matter to warning and advising the supreme Government, he publicly proclaimed his opposition, thus giving the signal for agitation to all the malcontents in India. Lord Elphinstone, the Governor of Bombay, followed Trevelyan’s example, but in a less pronounced manner, and these attacks from the minor Presidencies proved a serious embarrassment to the action of the Government. In spite of all this antagonism, the income-tax was passed, and Sir Charles Trevelyan’s unusual procedure led to his recall.
Lord Canning left Simla for his long and trying journey in May, about the hottest time of the year. On my taking leave of him, he told me that Sir Hugh Rose, then commanding the Bombay army, had been appointed to succeed Lord Clyde, who had long been anxious to return to England, and that Sir Hugh, though he intended to go to Calcutta himself, wished the Head-Quarters of the Army to remain at Simla; a question about which we had been rather anxious, as it would have been an unpleasant breaking up of all our plans, had I been ordered to Calcutta.