In truth, no thoroughly effective remedy can be applied in cases such as those mentioned above, without abandoning all real attempt at progress. Civilisation must, unfortunately, have its victims, amongst whom are to some extent inevitably numbered those who do not recognise the paramount necessities of the Budget system, and those who contract debts with an inadequate appreciation of the caveat emptor principle. Nevertheless, the Western financier will act wisely if, casting aside some portion of his Western habit of thought, he recognises the facts with which he has to deal, and if, fully appreciating the intimate connection between finance and politics in an Eastern country, he endeavours, so far as is possible, to temper the clean-cut science of his fiscal measures in such a manner as to suit the customs and intellectual standard of the subject race with which he has to deal.
The question of the amount of taxation levied stands apart from the method of its imposition. It may be laid down as a principle of universal application that high taxation is incompatible with assured stability of Imperial rule.[21]
The financier and the hydraulic engineer, who is a powerful ally of the financier, have probably a greater potentiality of creating an artificial and self-interested loyalty than even the judge. The reasons are obvious. In the first place, the number of criminals, or even of civil litigants, in any society is limited; whereas practically the whole population consists of taxpayers. In the second place, the arbitrary methods of administering justice practised by Oriental rulers do not shock their subjects nearly so much as Europeans are often disposed to think. Custom has made it in them a property of easiness. They often, indeed, fail to appreciate the intentions, and are disposed to resent the methods, of those whose object it is to establish justice in the law-courts. On the other hand, the most ignorant Egyptian fellah or Indian ryot can understand the difference between a Government which takes nine-tenths of his crop in the shape of land-tax, and one which only takes one-third or one-fourth. He can realise that he is better off if the water is allowed to flow periodically on to his fields, than he was when the influential landowner, who possessed a property up-stream on the canal, made a dam and prevented him from getting any water at all.
These principles would probably meet with general acceptance from all who have considered the question of Imperial rule. They are, indeed, almost commonplace. Unfortunately, in practice the necessity of conforming to them is often forgotten. India is the great instance in point. Englishmen are often so convinced that the natives of India ought to be loyal, they hear so much said of their loyalty, they appreciate so little the causes which are at work to produce disloyalty, and, in spite of occasional mistakes due to errors of judgment, they are in reality so earnestly desirous of doing what they consider, sometimes perhaps erroneously, their duty towards the native population, that they are apt to lose sight of the fact that the self-interest of the subject race is the principal basis of the whole Imperial fabric. They forget, whilst they are adding to the upper story of the house, that the foundations may give way.