The Opium Monopoly

Part 4

Chapter 43,767 wordsPublic domain

OPIUM. The region in which the poppy was cultivated in 1916-17 for the manufacture of "Bengal opium" comprises 32 districts of the United Provinces of Agra and Ouhd. The whole Department has, with effect from the 29th September, 1910, been under the control of one Opium Agent, with headquarters at Ghazipur. At Ghazipur there is a Government factory where the crude opium is manufactured into the form in which it passes into consumption. The cultivation of the poppy and the manufacture of opium are regulated by Act XIII of 1857, as amended by Act I of 1911, and are under the general control of the Lieutenant Governor and the Board of Revenue of the United Provinces, and the immediate supervision of the Opium Agent at Ghazipur. The possession, transport, import and export of opium are regulated by rules framed under the Indian Opium Act. Cultivation is permitted only under licenses granted under the authority of the Opium Agent. The area to be cultivated is fixed by the license, and the cultivator is bound to sell the whole of his production to the Opium Department at the rate fixed by Government.... Advances, on which no interest is charged, are given to licensed cultivators at the time of executing the agreement and from time to time (though ordinarily no more than two advances are given) until final delivery. In March, April and May the opium is made over to the officers of the Department, and weighed and tested, and as soon as possible afterwards each cultivator's accounts are adjusted, and the balance due is paid him. After weighment the opium is forwarded to the Government factory at Ghazipur, where it is manufactured in 3 forms--(a) opium intended for export to foreign countries, departmentally known as "provision opium"--(b) opium intended for consumption in India and Burma, departmentally known as "excise opium" and (c) medical opium for export to London. Provision opium is made up in the form of balls or cakes, each weighing 3.5 lbs., and is packed in chests, each chest containing forty cakes, weighing 140 1/7 lbs. It is generally of 71 deg. efficiency. Excise opium is made up in cubical packets, each weighing one seer, 60 of which are packed in a case. It is of higher consistency than the "provision opium." Medical opium is made up into cakes weighing 2 lbs. Provision opium is sold by public auction in Calcutta. A notification is published annually, generally about the month of June, stating the number of chests which will be put up for sale in each month of the next calendar year, and the quantities so notified are not altered without three months notice. Sales are conducted month by month by the Bengal Government; 7,000 chests were notified for sale in 1917 for shipment to non-China markets. The number of chests actually sold was 4,615. In addition to this, 4,500 chests were sold to the Government of the Straits Settlements, 2,200 to the Government of Netherland Indies, and 410 to the Government of Hongkong. The duty levied by Government on each chest may be taken to be the difference between the average price realized and the average cost.

The following facts are taken from "Statistics of British India. Financial Statistics, Volume II, Eighth Issue," to be found at the New York Public Library:

AREA UNDER POPPY CULTIVATION

Acreage: 1910-11 362,868 1911-12 200,672 1912-13 178,263 1913-14 144,561 1914-15 164,911 1915-16 167,155 1916-17 204,186

In the hey-day of the China trade, 613,996 acres were under cultivation in the years 1905-6, consequently this is a drop in the extent of acreage. But, as we have said before, the closing of the China market simply means that other outlets must be found, and apparently they are being found, since from 1914 onwards, the acreage devoted to poppy planting is slowly increasing again.

The opium manufactured in the Government factory is of three kinds--provision opium for export; excise opium, for consumption in India, and medical opium, for export to London. It is this latter form of opium which, according to Mr. MacDonald, in his "Trade Politics and Christianity in Africa and the East" is being manufactured into morphia by three British firms, two in Edinburgh and one in London, which morphia the Japanese are buying and smuggling into North China.

The "Statistics of British India" shows the countries into which Indian opium has been exported: we will take the figures for the last five years, which show the number of chests sent out.

_1912-13_ _1913-14_ _1914-15_ _1915-16_ _1916-17_

China 19,575 4,061 1,000 734 500

Straits Settlements 5,098 1,537 755 605 239

United Kingdom 11 115 498 199 0

Mauretius 10 19 23 65 120

Ceylon 50 105 80 65 80

Cochin-China 805 875 2,690 2,035 3,440

Java 3,010 3,265 2,650 1,835 1,965

Other countries 2,815 1,929 3,160 3,248 2,366

Total 31,374 11,906 10,858 8,786 8,710

In some countries we see a falling off, as in China. Cochin-China, the French colony, shows a considerable increase--the little Annamites, Tonquinese, Cambodgians and other inhabitants of this colony of the French Republic being shown what's what. Mauretius, a British Colony five hundred miles off the coast of Madagascar, in the Indian ocean, seems to be coming on. The falling off in shipments to the United Kingdom may possibly have been due to the war and the scarcity of ships. "Other countries" seem to be holding their own. With the end of the war, the increase in ships, and general trade revival, we may yet see compensation for the loss of China. With the increase of drug addicts in the United States, it may be that in time America will no longer be classed under "other countries" but will have a column all to itself.

In another table we find a comparison as to the number of chests of provision or export opium and of excise opium, or that intended for consumption in India. Thus:

_Provision Opium_ _Excise Opium_

1910-11 15,000 chests 8,611 chests 1911-12 14,000 9,126 1912-13 7,000 9,947 1913-14 12,000 8,307 1914-15 10,000 8,943 1915-16 12,000 8,391 1916-17 12,000 8,732

Each chest contains roughly about one hundred and forty pounds.

REVENUE

The revenue of India is derived from various sources, and is classified under eight heads. Thus: for 1916-17.

I. Land Forest Tribute from Native States Total L25,124,489 II. Opium 3,160,005 III. Taxation: 1. Salt 2. Stamps 3. Excise 4. Customs 5. Provincial rates 6. Income tax 7. Registration 32,822,976 IV. Debt Services 1,136,504 V. Civil Services 2,364,985 VI. Military Services 1,575,946 VII. Commercial: 1. Post 2. Telegraph 3. Railways 4. Irrigation 51,393,566 VIII. Miscellaneous Receipts 1,221,497 Grand total L118,799,968

Out of these eight classifications, opium comes fourth on the list.

But in addition to the direct opium revenue, we must add another item, Excise, which is found under the third heading, taxation. In the "India Office List for 1918" we find "Excise" explained as follows: Page 383: "Excise and Customs: Excise duties in India are levied with the two fold object of raising revenue and restricting the use of intoxicants and narcotics." In the same book, on page 385, we also read: "Excise and Customs Revenues: The total of the excise and customs revenues on liquors and drugs in 1915-16 was in round figures ten million pounds. This total gives an average of rather more than ninepence a head on the whole population of British India as the revenue charge on drink and drugs during the year."

These excise duties are collected on spirits, beer, opium and intoxicating drugs, such as ganja, charas, and bhang, all forms or preparations of Indian hemp (Cannabis Indica), known in some countries as hashish. In 1917-18 there were 17,369 drug shops throughout India. The excise duties collected from these sources was pretty evenly distributed. Excise revenue for a period of years is as follows:

_Excise_ _Opium_ _Total Revenue_

1907-8 L6,214,210 L5,244,986 L88,670,329 1908-9 6,389,628 5,884,788 86,074,624 1909-10 6,537,854 5,534,683 91,130,296 1910-11 7,030,314 7,521,962 97,470,114 1911-12 7,609,753 5,961,278 100,580,799 1912-13 8,277,919 5,124,592 106,254,327 1913-14 8,894,300 1,624,878 105,220,777 1914-15 8,856,881 1,572,218 101,534,375 1915-16 8,632,209 1,913,514 104,704,041 1916-17 9,215,899 3,160,005 118,799,968

The "Statistics of British India for 1918" has this to say on the subject of Excise (page 218): "Revenue: During the ten years ending with 1916-17 the net receipts from Excise duties increased ... at the rate of 47 per cent. The receipts from opium (consumed in India, not exported) being at the rate of 44 per cent. The net receipts from liquors and from drugs other than opium ... the increase at the rate of 48 per cent. This large increase is due not merely to the expansion of consumption, but also to the imposition of progressively higher rates of duty and the increasingly extensive control of the excise administration. The revenue from drugs, (excluding opium) has risen in ten years ... the increase being at the rate of 67 per cent."

A national psychology that can review these figures with complacency, satisfaction and pride is not akin to American psychology. A nation that can subjugate 300,000,000 helpless people, and then turn them into drug addicts--for the sake of revenue--is a nation which commits a cold-blooded atrocity unparalleled by any atrocities committed in the rage and heat of war. The Blue Book shows no horror at these figures. Complacent approval greets the increase of 44 per cent of opium consumption, and the increase of 67 per cent in the use of other habit-forming drugs. Approval, and a shrewd appreciation of the possibilities for more revenue from "progressively higher rates of duty," knowing well that drug addicts will sell soul and body in order to procure their daily supply.

XI

TURKEY AND PERSIA

Next to India, the greatest two opium-producing countries in the world are Turkey and Persia. The Statesman's Year Book for 1918 has this to say about it. On page 1334: "The principal exports from Turkey into the United Kingdom ... in two years were:

_1915_ _1916_

Barley L156,766 L49,413 Raisins 127,014 34,003 Dried fruit 375,519 540,633 Wool 36,719 143,216 Tobacco 149,100 3,711 Opium 262,293 48,090"

These are the only articles mentioned in this list of chief exports. There are others, doubtless, but the Statesman's Year Book is a condensed and compact little volume, dealing only with the principal things exported. In 1915 we therefore notice that the opium export was second on the list, being exceeded by but one other, dried fruit. In 1916, the third year of the war, the opium export is decidedly less, as are all the other articles exported, except dried fruit and wool--which were articles probably more vital to the United Kingdom at that time even than opium.

PERSIA

The same authority, the Statesman's Year Book for 1918, gives a table on page 1162, showing the value of the chief exports from Persia. The values are given in thousands of kran, sixty kran equaling one pound sterling.

_1914-15_ _1915-16_

Opium 41,446 kran 41,732 kran

Since the war, both Turkey and Persia are more or less under control of the British Empire, which gives Great Britain virtual control of the world's output of opium. With this monopoly of the opium-producing countries, and with a million or so square miles added to her immense colonial Empire, one wonders what use Great Britain will make of the mandatory powers she has assumed over the lives and welfare of all these subject peoples! Will she find these helpless millions ready for her opium trade? Will she establish opium shops, and opium divans, and reap half the costs of upkeep of these newly acquired states by means of this shameful traffic?

XII

MAURETIUS

Another British colony is Mauretius, acquired by conquest in 1810, and formally ceded to Great Britain by the Treaty of Paris in 1814. This island is in the Indian Ocean, 500 miles east of Madagascar, with an area of about 720 square miles. The population is about 377,000, of which number 258,000 are Indian, and 3,000 Chinese. Opium appears to be sold in the colony, since the Blue Book mentions that licenses are required for opium sellers. As far as we can discover, by perusal of these Government Reports, the sale of opium is not conducted by the Government itself, as in India, the Straits Settlements, Hongkong, etc., but is carried on by private dealers who obtain licenses before they can open opium shops. A part of the revenue, however, is derived from opium; thus, according to the Blue Book for the Colony of Mauretius for 1915, page V 73, we read that the imports of opium for the year amounted to 1,353 kilos, with a duty collected of 54,126 rupees. The Blue Book for 1916 shows a gratifying increase. Thus, the import of crude opium from India amounted to 5,690 kilos, with a duty collected of 227,628 rupees. (See page V 64.)

_1915_ _1916_ Imports of opium 1,353 kilos 5,690 kilos Duty on opium 54,126 rupees 7,628 rupees

Total duty on all imports 3,765,677 rupees 4,143,085 rupees

Statistics for British India, Eighth Issue, gives these figures:

OPIUM EXPORTED TO MAURETIUS

1912-13 10 chests 1913-14 19 " 1914-15 23 " 1915-16 65 " 1916-17 120 "

This is a poor little colony, but has its possibilities. The consumption of opium appears to be increasing steadily in a most satisfactory manner. Congratulations all round.

XIII

BRITISH NORTH BORNEO

British North Borneo occupies the northern part of the island of Borneo. Area, about 31,000 square miles, with a coast line of over 900 miles. Population (1911 census), 208,000, consisting mainly of Mohammedan settlers on the coast and aboriginal tribes inland. The Europeans numbered 355; Chinese 26,000; Malays, 1,612; East Indians about 5,000 and Filipinos 5,700. The number of natives cannot be more than approximately estimated, but is placed at about 170,000. The territory is under the jurisdiction of the British North Borneo Company, being held under grants from the Sultans of Brunei and Sulu (Royal Charter in 1881).

Like many other British colonies, opium is depended upon for part of the revenue. The Statesman's Year Book for 1916 observes on page 107: "Sources of revenue: Opium, birds' nests, court fees, stamp duty, licenses, import and export duties, royalties, land sales, etc. No public debt."

In this frank manner, our attention is called to opium, which appears first on the list of sources of revenue.

Going over the files of the Government reports, we will begin with the "Supplement to the Official Gazette for British North Borneo. Administration Report for the Year 1910." Published June 1, 1911. On page 3 we read: "Customs and Trade: The import and export trade of the state shows a healthy expansion.... It is interesting to note that imports show an increase at every station. Out of the 47 headings of Tariff, there are only 7 which show decreases.... The largest increases appear under cloth, $147,106; opium, $132,692, and iron ware, $118,620.... The general all round increases ... are of course due to the demand for supplies of all kinds in connection with the opening of rubber estates."

The Supplement to the Official Gazette, Report for 1912 (published in December, 1913) is also a report of general prosperity. Page 4: "Trade: The volume of trade for the year 1912 was $11,139,122, giving an increase over 1911 of 18 per cent.... Imports: As in 1911, all stations show an increase of imports. Out of 47 headings, 33 show increases, 12 show decreases, and 2 remain stationary. Increases: There was an increase under rice, flour and grain ... the increase under other headings include sundries, opium, machinery, etc."

The next Government Report is not so happy. Opium imports show no "healthy expansion." Thus, the Supplement to the Official Gazette, Report for 1913 (published 1 February, 1915) says on page 4: "Other decreases in imports were opium, $109,180. The decrease in opium was due to the abolition of the Opium Farm, which also held the Labuan Farm, and opium was therefore no longer imported from Labuan for use in the West Coast and the Interior."

Still more bad news as to opium, in the report for 1914, (published 1 February, 1916). All imports drop. Page 4 records "Decrease in imports.... Railway and telegraph material, rice, flour, grain and opium." In this year the opium imports only amount to $58,464. This general falling off in all imports may have been due to the war. But the opium situation was apparently growing serious. On page 17 of this same report we read that "Thirty-two ordinances were passed by the Council and became laws during the year. Among them the Opium and Chandu."

The brevity and meagerness of these official reports often leave one puzzled as to their meaning. The Supplement to the Official Gazette for 1915 (published October, 1916), shows still more discouraging news as to opium. Imports that year amounted to only $31,299. But, in spite of this discouragement, hope still remains. The same report shows optimism under the head of Excise. "Excise: $627,225, against $467,078, an increase in the net revenue of $160,147, due to Government taking over the sole control of the sale of chandu (smoking opium) and the collection of other Excise duties, formerly farmed."

This explains the Ordinance passed by the Council the preceding year, regarding Opium and Chandu. Since the Government has taken over "sole control of the sale of chandu" and will collect the excise duties systematically and thoroughly, we may still hope for some future report which will show once more a "healthy expansion" in the opium revenue.

XIV

BRITISH GUIANA

Situated in South America. Area, 89,480 square miles. Population at census of 1911, excluding aborigines in the unfrequented parts of the colony, 296,000. The Statesman's Year Book, which gives us these brief facts, has very little to say about this British colony in our Western Hemisphere, and gives no dates or information as to how and when it was acquired. The Government reports are also meager and unsatisfactory, and there is no wealth of detail as to exports and imports. The country, however, is rich in gold, mining having commenced in 1886. Diamonds have also been discovered.

The chief sources of revenue, however, are customs, excise and licenses. With the word "excise" we have come to have unpleasant associations. From "The Statistical Abstract for British Self-Governing Dominions, Colonies, Possessions and Protectorates" we find a table showing the imports of opium into the various countries under British rule. The opium imports into British Guiana are as follows:

1910 1,251 pounds sterling 1911 1,270 1912 2,474 1913 4,452 1914 5,455 1915 4,481

These figures would seem to indicate that even on the Western Hemisphere the taste for opium may be cultivated. It need not necessarily be confined to the Oriental peoples. The population of much of South America is a mixed lot, the result of mixed breeding between Spanish settlers, Indians, native tribes of all sorts. All this jumble, including the aborigines referred to, might, with a little teaching become profitable customers of the Opium Monopoly. Time and a little effort, given this fertile field, ought to produce a "healthy expansion" in the opium trade.

And that this insidious habit is indeed taking hold, in at least one more country in South America, one may infer from the following paragraph which appeared in the New York Times, 4 October, 1919:

DRUG EVIL IN ARGENTINA

Buenos Aires Opens Fight on Use of Narcotics

The city government of Buenos Aires, Argentina, has begun a determined fight to wipe out the drug evil by the enactment of stringent laws governing the sale of narcotics. This step was taken after an investigation by the authorities had disclosed that not only was the narcotic habit strong among the poor, but that it was spreading throughout virtually every class in the city.

Until the passage of the laws druggists were permitted to sell cocaine, morphine and opium to any purchaser. The new laws forbid the sale of these drugs except in filling prescriptions prepared by registered physicians. The city also has established dispensaries for the treatment of drug addicts.

XV

HISTORY OF THE OPIUM TRADE IN CHINA

In a vague way, we are familiar with the "opium evil" in China, and some of us have hazy ideas as to how it came about. The China Year Book for 1916 has this to say on the subject: "The poppy has been known in China for 12 centuries, and its medicinal use for 9 centuries.... It was not until the middle of the 17th century that the practice of mixing opium with tobacco for smoking purposes was introduced into China. This habit was indulged in by the Dutch in Java, and by them taken to Formosa, whence it spread to Amoy and the mainland generally. There is no record to show when opium was first smoked by itself, but it is thought to have originated about the end of the 18th century. Foreign opium was first introduced by the Portuguese from Goa at the beginning of the 18th century. In 1729, when the foreign import was 200 chests, the Emperor Yung Ching issued the first anti-opium edict, enacting severe penalties on the sale of opium and the opening of opium-smoking divans. The importation, however, continued to increase, and by 1790 it amounted to over 4,000 chests annually. In 1796 opium smoking was again prohibited, and in 1800 the importation of foreign opium was again declared illegal. Opium was now contraband, but the fact had no effect on the quantity introduced into the country, which rose to 5,000 chests in 1820; 16,000 chests in 1830; 20,000 chests in 1838, and 70,000 chests in 1858."