In consideration of this transfer, Maharaja was to pay 75,00,00 lacks of rupees and “to present annually to the British Government one horse, twelve perfect shawl goat of approved breed (six male and six female) and three pairs of Kashmir shawls .” According to the Article X of the treaty of Amritsar, Maharaja Gulab Singh was a vassal of the British and in acknowledge of their supremacy had to pay a token tribute of the British Empire.
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Owing to its extreme inaccessibility and the undoable difficulties of weighty transport, was always liable to sudden famines owing either to failure of the rice crops or the cornering of the grain market.
In order to meet this situation the Maharaja established a rigid monopoly of rice and had it sold at a fixed price to the people.
The valley of Kashmir, as it was officially designated now, different from other states, it was totally independent in its internal affairs. But he had hardly any time left for sitting up an administration, though he makes a few changes.
Gulab Singh’s first problem was to suppress local crime ruthlessly and ordering public execution to deter offenders, and to maintain law and order with a stern hand .
Order was restored every part of the country and every efforts were made to render trade and commerce safe for all. Nicholson notes as fallows in his Diary on the 19th November 1847.
Had some conversation with party of Kabul merchants taking tobacco and snuff to Kashmir whence they intend returned with pattoo and tosh, which last fetches a very high price in Kabul.
Their fields, their crops, their streams Even the peasants in the vale They sold, they sold all, alas! As Huttenback observes, “the final act of the Drama was to be played in Kashmir itself; Gulab Singh still had to defeat the Sikh Governor, who was unwilling to surrender the province” .
With the help of a small force lent by the East India Company, defeated out the Sikh governor, Sheikh Imam-ud din from the province and took possession of it, after subduing the Sikh Governor Sheikh Imam-ud-din who opposes Gulab Singh’s take-over, with the help of British troops.
Fortunately, these qualities were present in an abundant measure in the new ruler of Kashmir, Maharaja Gulab Singh.