(Reprinted from the "Evening Star")

The following interesting letter on "India, her Wheat and Railways," by Major-General Fulton, has been presented to the Dunedin Chamber of Commerce, with permission to publish it:—

The 'Nineteenth Century' for February, 1884, has, under the above heading, an article showing the extraordinary development in the export trade of wheat from India during the decade 1873 to 1883. As wheat is one of our principal New Zealand products, and the shipment of it to England one of our main commercial undertakings, it may not be out of place to endeavor to trace the subject a little further, to see how we are likely to be affected by the Indian trade. Many things have of late years combined to produce the present state of wheat cultivation in India.

British rule, by putting an end to internecine wars, has not only forced large numbers to take to agriculture as a means of livelihood, but the immunity from plunderers has encouraged a better style of farming and an increase in the area cultivated. It is easy to understand that when a man ploughs with his sword by his side and his shield and matchlock slung over his back, he is not likely to cultivate more than is absolutely necessary, or give that consideration to his farming that he would have given under more peaceful conditions. Given the peaceful condi ions under British rule, and the improved cultivation has followed to such an extent that in some cases the land revenue has had to be remitted, as, owing to the glut in the local market, farmers have been unable to realise on their produce, and had not the wherewith to meet the Government demand. War murder, rapine, infanticide, and suttee being stopped, or at least checked, the population has rapidly increased, and although there have been more mouths to feed, there have also been more haods to till lands which have long lain idle; hence increased production for both home and foreign consumption.

Irrigation has long been practised in India, but it is only of late years that the British Government have come to recognise its real benefits. Not many years ago famine used to stalk the land, striking down whole provinces at one time. The aged and weakly used to lie down and die, whilst the stronger members of the community fled to more prosperous localities. To meet such a condition of things Government introduced "famine protective works" in the forms of irrigation and railways. The first canal opened by the British Government was the Western Jumna, in 1819; the last was the Sirhind, into which water was admitted by the Viceroy on the 24th of November, 1882. Between these two dates the following have also been completed:—The Eastern Jumna, Ganges, Lower Ganges, Soane, Agra, Baree Doab, besides all the inundation canals and those of Rohilcund, Bengal, Madras, Scind, etc. Projects are now in hand for a canal from the Chenab River to water an enormous tract of land between the Chenab and Ravee. The Betwa and Surda Canals are also progressing. The principal sources of supply for the canals of Northern India—the great wheat-growing land—are the eternal snows of the Himalayas. The Rivers Indus, Chenab, Ravee, Sutlej, Jumna, and Ganges all take their rise in the northern barrier of India, and are, therefore, practically speaking, unfailing, and the canals drawn from them are called permanent cana s, in contradistinction to the inundation channels, which flow only when the rivers are in flood during the monsoons. Besides these there are the different tanks or storage reservoirs, where the waters of the rainy season are collected and impounded for distribution during the drier months. Some of these works are of enormous extent, and confer immense benefits. Lastly, there are the wells, which are constantly increasing in number as Government make money advances for their construction; for so long as the water is within 25ft to 30ft of the surface it pays the Native cultivator to irrigate from his well.

In India there are two crops per annum; the spring crop, cut about April or May; and the autumn crop, cut in September or October. Wheat, barley, oats, gram, mustard, etc., belong to the spring crop; whilst rice, maize, millet, cotton, etc., are the autumn. Where possible, the land cultivated during one crop is allowed to he fallow during the next; but the rule is far from absolute, much of the land being cropped twice annually. There is an outside market for wheat and rice, whilst there is none for maize or millet; the people, therefore, though they prefer wheat as the most sustaining, nourishing cere l, sell their wheat and rice, and content themselves with that for which there is less demand. The opening of the Suez Canal and the development of the railway system through India have, without doubt, placed a profitable market within reach of the Hindoo trader; who has not been slow in taking advantage of it.

Of the lines in hand, it is expected that 1.103 miles will be opened daring the year, leaving 1,864 miles for completion at a later date. Long be ore they are done fresh projects will have been sanctioned, for Indian railways pay, after deducting accumulated interest during construction, the handsome return of 4.6 per cent. Wheat is carried at exceptional rates along all the Indian lines, as it is the policy of the Government to foster the export trade. As India can borrow any amount of money in England at 4 per cent., and the railways are paying 4 6 per cent., it will be seen that there is still a considerable margin left to be devoted to the reduction of carriage of wheat to the seaboard.

Education has opened the minds and enlarged the views of the people of Hindostan. Telegrams from the Corn Exchange in London keep the trading class of Natives throughout the country accurately posted as to the state of the European grain market. The old slow modes of water and land carriage have been discarded, so far as wheat is concerned, and railways only are used, for they have awakened to the fact that time is money

The general classification of wheat in India, though often obscured by local terms, is fourfold, according as the grain is hard or soft, red or white. Soft white wheat, which commands the highest price in the European markets, is grown to perfection in Northern India and Rajpootana—a rich loam soil, well manured and irrigated, and a moderate severe winter, are its favorite conditions. Next in value come soft red wheats, which are often sown in Upper India, intermixed with barley or gram. One especially valuable species known as "pissi" comes from the Nerbudda Valley. White hard wheats are much prized by the Natives, and are found in the Deccan and South Mahratta count y. This species is more delicate than the hard red, and requires careful culture. Hard red wheats form the predominant species in the central provinces, Rajpootana and Bombay. The European demand for soft wheats appears to be effecting a considerable change in the local estimation of the various sorts. There is a difference of some 5s per quarter in the price.

The area under wheat cultivation in British territory is reckoned at about 20,000,000 acres, and the yield about 6,000,000 tons. The area in Native States would give an additional 6,000,000 acres, with a yield of 1,250,000 tons. In British territory the Punjab heads the list with 7,000,000 acres—6,250,000 in the north-west provinces. Then follow the central provinces with 4,000,000, Bombay with 1,500,000, and Behar with 850,000 acres. Of the Native States, the Central India Agency and Rajpootana Agency have 2,500,000 of acres apiece; Hyderabad 750,000. The average yield per acre is estimated at ten bushels in the Punjab, thirteen in the North-west, nine in Bombay Presidency, and eight in the central provinces. These, of course, are only averages struck on whole areas and on lands irrigated and unirrigated. We should say fifteen bushels was nearer the actual average after eliminating failures, etc. We have seen as much as forty bushels bagged on good soil well irrigated.

The average cost of production is estimated at 1s per bushel, or, including rent, at 1s 6d, or 12s per quarter. The carriage from, say Delhi, which is the chief wheat mart of Upper India, comes to about 9s 4d per quarter to Bombay Agency charges amount to nearly 8d. Freight by last advices was 38s per ton, or say 8s per quarter. From the above it will be seen that Indian wheat can be landed at Home for 40s per quarter.

Daring the last six months of 1883 the price has declined very considerably, and lowered the average. It is evident, then, that unless the cost of production and carriage can be reduced in some way, the margin of profit for the Indian cultivator will be very small. Fortunately for India, the cost of railway carriage can be reduced very considerably. The great expense on the line to Bombay has been the price of fuel. The opening up of the Wurdah and other new coalfields will reduce this to a very great extent; in fact, reductions have already taken place, though the figures are not at present to hand.

England annually consumes 25,000,000 quarters of wheat, and produces less than 10,000,000. The sharp competition for the custom of the English market will stimulate to the utmost the endeavor to reduce both cost of production and carriage. The Government Department of Agriculture and Commerce, of which Mr E. C. Buck is the head, is constantly introducing new implements, new kinds of seeds, new stud stock; giving money prizes at shows, advancing money for purchase O' seed or stock, ana fostering in every way agriculture, the great mainstay of Indian revenue.

The climate of India is so far favorable to wheat in that there is never any fear of the crop not ripening. If the wheat can be grown either by natural rainfall or artificial irrigation, it will ripen to perfection; so that the grain, unless wetted from without, will not discolor or spoil in transit. The soil, as we have shown, is fairly fertile, yielding from eight to forty bushels per acre. The cost of labor in Hindostan is so cheap that no country can on that score compete with it. The area fit for wheat cultivation is practically unlimited. There are millions page break of acres available, only waiting till means of irrigation and transport shall make it profitable to break them up or substitute wheat seed for millet. Everything tends to show that, in spite of Mr Gladstone, Egypt and the Suez Canal are being forced upon England. Freight from here to England is 35s per ton, whilst from Bombay, though only half the distance, it is 38s. The reduction of the Canal dues would at one enable Indian wheat to take the lead in the European market.

Mr Fowler, in his article, shows how the Indian wheat trade has steadily risen from 19,000 tons in 1873 to nearly 1,000.000 tons in 1882. What is to check its further progress? Nothing that we know of short of a Russian invasion.