"Were we to take this revenue, which the Rajahs now enjoy, in tribute for the maintenance of public establishments concentrated at distant seats, all these local establishments would of course be at once disbanded; and all the effectual demand which they afford for the raw agricultural produce of distant districts would cease. The price of the produce would diminish in proportion; and with it the value of the lands of the districts around such capitals. Hence the folly of conquerors and paramount powers, from the days of the Greeks and Romans down to those of Lord Hastings and Sir John Malcolm, who were all bad political economists, supposing that conquered and ceded territories could always be made to yield to a foreign state the same amount of gross revenue they had paid to their domestic government, whatever their situation with reference to the markets for their produce--whatever the state of their arts and their industry--and whatever the character and extent of the local establishments maintained out of it. The settlements of the land revenue in all the territories acquired in central India during the Mahratta war, which ended, in 1817, were made upon the supposition, that the lands would continue to pay the same rate of rent under the new, as they had paid under the old government, uninfluenced by the diminution of all local establishments, civil and military, to one-tenth of what they had been; that, under the new order of things, all the waste lands must be brought into tillage; and be able to pay as high a rate of rent as before tillage; and, consequently, that the aggregate available net revenue must greatly and rapidly increase! Those who had the making of the settlements, and the governing of these new territories, did not consider that the diminution of every _establishment_ was the removal of a _market_--of an effectual demand for land produce; and that when all the waste lands should be brought into tillage, the whole would deteriorate in fertility, from the want of fallows, under the prevailing system of agriculture, which afforded the lands no other means of renovation from over cropping. The settlements of the land revenue which were made throughout our new acquisitions upon these fallacious assumptions, of course failed. During a series of quinquennial settlements, the assessment has been everywhere gradually reduced to about two-thirds of what it was when our rule began; and to less than one-half of what Sir John Malcolm, and all the other local authorities, and even the worthy Marquis of Hastings himself, under the influence of their opinions, expected it would be. The land revenues of the native princes of central India, who reduced their public establishments, which the new order of things seemed to render useless, and thereby diminished their only markets for the raw produce of their lands, have been everywhere falling off in the same