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CONSIDERATIONS 
 
 RELATIVE TO THE 
 
 RENEWAL 
 
 EAST-INDIA COMPANY'S 
 
 BY 
 
 WILLIAM SMITH O'BRIEN, Esq. M. P. 
 
 Agitor salus sociorum atque amicorum, pro qua multa majores 
 vestri magna et gravia bella gesserunt ; aguntur certissima populi 
 Romani vectigalia et maxima, quibus amissis, et pacis ornamenta, et 
 subsidia belli requiretis ; aguntur bona multorum civium, quibus est 
 a vobis, et ipsorum, et reipublicae causst, consulendum. — Cicero. 
 
 A spice portus 
 Et plenum magnis trabibus mare, plus hominum est jam 
 In pelago ; veniet classis quocunque voctlrit 
 Spes lucri. — Juv. 
 
 LONDON: 
 
 J. M. RICHARDSON, 23, CORNHILL, OPPOSITE 
 THE ROYAL EXCHANGE. 
 
 1830. 
 
LOAN STACK 
 
 LONDON: 
 
 MARCHANT, PRINTER, INGRAM-COURT. 
 
• HfHSt 
 
 f: 
 
 ttOi 
 
 PREFACE. 
 
 The object of the following pages is to 
 offer to those who wish to form an opinion 
 upon the expediency of renewing the Charter 
 of the East-India Company, a summary view 
 of the past and existing relations between 
 that body and the public. So much mis- 
 conception prevails upon the subject, that 
 every attempt, however imperfect, to afford 
 information affecting a question, the decision 
 of which involves the happiness and pros- 
 perity of a large portion of the human race, 
 carries with it its own apology. 
 
 It has been the habit, of late, to discuss 
 this question solely with reference to the in- 
 terests of trade ; yet it is evident to every 
 disinterested observer, that, of the conside- 
 rations connected with it, there are many to 
 which that of the extension of commerce is 
 subordinate. This precedence is claimed, 
 in the first place, by a regard to the welfare 
 of the natives of India ; in the next, by a 
 care for the security of the British power ; 
 and, lastly, by the demand for justice to 
 the East-India Company itself. To recon- 
 
 A 2 
 
 521 
 
PREFACE. 
 
 cile and unite these important interests is 
 the duty of a wise and impartial Legislature ; 
 and is the end to which all the reasonings 
 and conclusions of this work have been 
 directed. 
 
 To form a just idea of the nature of the 
 British dominion in India, it is necessary to 
 be in some measure acquainted with the 
 manner in which it was acquired. A rapid 
 survey has, therefore, been taken of our 
 conquests, accompanied by a general view 
 of the present extent of the British terri- 
 tories in India ; a brief outline of the con- 
 stitution of the East-India Company has 
 been traced, in order that we may determine 
 its aptitude as an instrument of government. 
 After touching upon the controverted ques- 
 tions relative to the Free Settlement of Eu- 
 ropeans, and the Freedom of the Press in 
 India, I have proceeded to examine the 
 reality of those dangers which are supposed 
 to menace the stability of our Indian empire. 
 A statement of the territorial revenue and 
 commercial profits of the Company, has been 
 deduced from the accounts and papers which 
 have been laid before Parliament, and a 
 variety of facts respecting the trade of the 
 East have been drawn from the same source, 
 to enable the reader to appreciate the diffe- 
 rent arguments used by the advocates and 
 adversaries of a Free Trade. 
 
CONSIDERATIONS, 
 
 ETC. ETC. 
 
 The first East-India Company was formed in 
 the year 1600; and invested with a corporate 
 capacity and exclusive privileges by a charter 
 from Queen Elizabeth. In 1609, the charter 
 was renewed, and made perpetual. During the 
 civil wars, the trade became interrupted, and 
 fell into the hands of private unprivileged mer- 
 chants, who were termed interlopers. In 1661, 
 a new charter was^ conferred; and, in 1669, 
 Bombay, which had been received from Portugal, 
 as part of the marriage-portion of the Infanta, 
 the wife of Charles the Second, was granted to 
 the Company. The fourth charter was given in 
 1677, and renewed in 1683 and 1686, with 
 enlarged powers, and a confirmation of former 
 privileges. The next renewal is dated in 1693. 
 The Company having made default in the pay- 
 ment of five per cent, on its capital stock, imposed 
 by the 4 & 5 William and Mary, it became 
 a question whether the charter was not thereby 
 forfeited. The act of 1693 restored the incor- 
 porated rights of the Company, and made 
 several regulations for the internal management 
 of its concerns. 
 
6 CHARTERS. 
 
 These charters gave the Company power to 
 make peace and war ; to conchide treaties ; to 
 appoint governors and judges ; to coin money ; 
 to carry on exclusive trade between the Cape of 
 Good Hope and the Straits of Magellan; and 
 to seize interlopers : in short, all the functions 
 of sovereignty ; the sovereignty itself being 
 alone reserved. 
 
 In 1698, a new Company was formed, and 
 permitted to trade with the East Indies, in 
 consideration of an advance made by it to 
 Government of two millions sterling, at eight 
 per cent. In 1702, a compromise took place 
 between the new and old Companies ; and their 
 union was completed in 1708, by a formal sur- 
 render, on the part of the latter, of all its 
 charters. Thenceforward, they became one 
 Company. 
 
 By the 8th Anne, c. 17, their exclusive trade 
 was prolonged till 1726; and, after that time, 
 three years' notice was to be given by Parliament 
 before their privileges could be resumed. This 
 renewal of the charter was purchased by the 
 further advance to Government of £1,200,000, 
 free of interest. These loans to Government 
 formed the foundation of the Company's capital 
 stock, upon which the dividend was made. 
 Various pecuniary arrangements subsequently 
 took place between the Public and the Company, 
 which it would be tedious to enumerate. In 
 1788, the Company's capital stock amounted 
 to £4,000,000; in 1789, it was increased to 
 £5,000,000; and, in 1793, to £6,000,000, its 
 present amount. 
 
PROGRESS OF BRITISH POWER l]g INDIA. 7 
 
 By the 3d Geo. 11. c. 14, the exclusive trade 
 was continued till 1736, with three years' notice, 
 as before. The charter was again renewed in 
 the 17th Geo. II. and continued till 1780. The 
 next renewals are dated in 1781 and 1793. In 
 1813, the charter was again renewed, upon 
 terms which will be minutely stated hereafter. 
 
 During the first century of the Company's 
 existence, its affairs were much mismanaged, 
 both at home and in the East. A few factories on 
 the coast, and in the eastern isles, constituted 
 the whole of its territorial establishment. The 
 Dutch were, at this time, the predominant 
 European power in the East ; and, during the 
 inglorious reign of Charles II. harassed the 
 trade, and attacked the settlements of Great 
 Britain. It was not till the middle of the last 
 century that the British power acquired a cha- 
 racter of importance in India. The progress of 
 the British arms cannot be clearly understood 
 without a general survey of the political condition 
 of the several native powers at the time when 
 our conquests commenced. The following 
 outline will give an idea of their relative im- 
 portance. 
 
 The authority of the Mogul Emperors had, 
 at this period, sunk into insignificance. The 
 viceroys of the different provinces had thrown 
 off obedience to their nominal head, and esta- 
 blished independent sovereignties. Among these, 
 the nabobs of Bengal, of Oude, and of the Carnatic, 
 and the Nizam of the Deccan, were the chief 
 Mahometan princes who had founded their 
 power upon the ruins of the ancient monarchy. 
 
NATIVE POWERS. 
 
 In the Peninsula, Hyder Ali was in possession of 
 a large kingdom which had been acquired by 
 usurpation, and extended by conquest. The 
 whole of the western side of the Deccan, with 
 central India, and many of the northern parts 
 of Hindustan had been subjugated, and were 
 governed by the Mahrattas — a race of Hindoo 
 warriors, who had shaken off the Mahomedan 
 yoke and avenged the previous subjection of 
 their country. 
 
 The Paishwah, who held the person and ex- 
 ercised the power of the Rajah of Sattarah, the 
 legitimate head of the Mahrattas — and the fa- 
 milies of Scindia Holkar, the Guicowar Rajah, 
 and the Rajah of Nagpoor, or Berar, were the 
 most powerful chiefs of this confederacy. 
 
 The dissensions of Europe first converted a 
 company of merchants into warriors and con- 
 querors. 
 
 The French having formed settlements in the 
 vicinity of the English, the wars which were 
 carried on in Europe between England and 
 France, naturally led to hostile encounters be- 
 tween their subjects in the East. In 1746, Ma- 
 dras was captured by the French. It was restored 
 at the peace in Aix-la-Chapelle. In the succeed- 
 ing wars of 1756 and 1778, Pondicherry and 
 other French settlements were taken by the 
 British, and the conflict was finally terminated 
 by their total reduction, after the revolutionary 
 war had placed the two nations in hostility to 
 each other. Many of the French, however, en- 
 tered the service of the native princes, and, by 
 their intrigues, and by the effective assistance 
 
PROGRESS OF BRITISH POWER l-S^ INDIA. \) 
 
 which they rendered, continued to instigate 
 aggression, and form combinations against the 
 British, and their allies. In an early stage of 
 these contests the native powers had become in- 
 volved either as the allies or enemies of the con- 
 tending parties. The Company acquired a per- 
 manent influence in the Carnatic by defeating 
 the pretensions of a competitor for the dignity 
 of Nabob, who was supported by the French, 
 and by placing in the government of that pro- 
 vince, the Nabob Mahomed Ali, the friend and 
 ally of the British interests. This connection 
 eventually became one of dependence on his 
 part, and of protection on the part of the Com- 
 pany. 
 
 The Rajah of Travancore was also an early 
 confederate of the British. In 1765, the nor- 
 thern Circars, a tract of country which extends 
 along the eastern coast, was ceded, by the 
 Nizam, to the Company, with the sanction of 
 the Mogul Emperor. The rancorous and inve- 
 terate hatred of Hyder Ali, and of his son, 
 Tippoo Saib, to the European name, threatened, 
 during a long period, the existence of the British 
 power in southern India, and the subsequent 
 fall of this dynasty was among the chief causes 
 of its extension. From the middle to the close 
 of the last century, war was waged against the 
 Company by these princes, interrupted only by 
 intervals employed in forming new combinations 
 for its more advantageous renewal. After a 
 succession of combats, in which the British 
 suffered frequent reverses, Tippoo's power was 
 at length broken by the vigorous measures of 
 
10 PROGRESS OF BRITISH POWER IN INDIA. 
 
 Lord Cornwall is, and a treaty was dictated 
 under the walls of his capital. This humiliation, 
 however, was not able to extinguish his ambi- 
 tion, or to mitigate his animosity; and it was 
 reserved to Lord Wellesley to complete, in 
 1799, the overthrow of his power, by the capture 
 of Seringapatam. Since that event, the whole 
 Peninsula has enjoyed tranquillity, under the 
 protection of the British shield. The hereditary 
 princes of Mysore have been restored to their 
 ancient dominions, and the other territories of 
 Tippoo have become the prize of the conqueror. 
 The court of the Nizam had heartily co-operated 
 in the destruction of Tippoo, and, having since 
 remained faithful to its engagements with the 
 Company, still enjoys the independent sove- 
 reignty of a very extensive territory. 
 
 On the western side of India, the Bombay 
 Government had become involved in hostilities 
 with the Mahrattas, by espousing the cause of 
 Ragobah, whose pretensions were opposed by 
 Scindia and the other Mahratta chiefs, and who 
 was accused of having murdered his nephew, 
 the young Paishwah, with the expectation of 
 succeeding him. The results of the war which 
 followed were the conquest of Salsette, Baroach, 
 and Gualior; but, the Supreme Government 
 having disapproved of the connexion with Ra- 
 gobah, his cause was abandoned, and a treaty 
 was concluded at Salbye, in 1782, by which 
 these acquisitions were restored, and Madhoo 
 Row, the son of the murdered Paishwah, recog- 
 nised as his legitimate successor. After the 
 death of Madhoo Row, in 1 797, Scindia made him- 
 
PROGRESS OF BRITISH POWER VS INDIA. 11 
 
 self master of the person and influence of Bajee 
 Row, the young Paishwah ; but, upon the defeat 
 of Scindia's army, and the capture of Poonah 
 by Holkar, Bajee Row fled to the British for 
 protection. A treaty was concluded at Bassein, 
 in 1802, by which it was stipulated that the 
 Company should undertake the defence of the 
 Paishwah's kingdom, leaving him absolute 
 master of its civil government. A similar ar- 
 rangement had been formed, in 1780, with the 
 Guicowar, the faithful ally of the British. The 
 Company having been forced into a war with 
 Scindia, Holkar, and the Rajah of Berar, the 
 campaigns of 1803 and 1804 reduced the former 
 to submission, annihilated the army of Holkar, 
 and compelled the Rajah of Berar to accept a 
 subsidiary force as a guarantee of his future 
 amity. No further hostilities took place between 
 the Mahrattas and the British till the year 1817. 
 In that year, Lord Hastings having made prepa- 
 rations for the employment of the British army, 
 in the suppression of the Pindarries, a horde of 
 freebooters, whose ravages had spread desolation 
 throughout the whole of the central parts of 
 India, the Paishwah and the Rajah of Berar 
 took this opportunity of breaking their engage- 
 ments with the Company. They attacked the 
 British subsidiary forces stationed at Poonah 
 and Nagpoor, their respective capitals, and at 
 the same time the Company's troops were drawn 
 into a combat with the army of Holkar, at Ma- 
 heidpore. 
 
 In every instance, the triumph of British skill 
 and valour was complete. The faithless Paish- 
 
12 PROGRESS OF BRITISH POWER IN INDIA. 
 
 wall was deposed, and his dominions now form 
 one of the provinces subject to the direct go- 
 vernment of the Company. The power of the 
 Rajah of Berar has been much curtailed ; and 
 Holkar has forfeited a considerable extent of 
 territory, and has been deprived of his armed 
 force. 
 
 It remains to take a review of the acquisitions 
 of the Company in the presidency of Bengal. 
 In the reign of William III., Calcutta, which 
 now, probably, contains 600,000 persons, was a 
 small village ; and, until the year 1756, the land 
 annexed to it, scarcely extended beyond the limits 
 of the town. In that year it was taken by 
 Surajah Dowlah, Nabob of Bengal ; and its cap- 
 ture is memorable, as well on account of the 
 cruel fate of the English who suffered on that 
 occasion, as of the important consequences to 
 which it gave rise, and the severe retaliation 
 which it provoked. In the following year, 1757, 
 Lord Clive fitted out an expedition at Madras, 
 retook Calcutta, and, at the battle of Plassey, 
 totally defeated the forces of the Nabob, who 
 lost, at the same time, his throne and his life. 
 Meer JafEer, having purchased the aid of the 
 British, by a large gift of treasure and territory, 
 was appointed his successor ; but not being found 
 sufficiently pliant, he was deposed in favour of 
 his son-in-law, Cossim Ali. The new Nabob, 
 after a protracted dispute with the Company's 
 servants, respecting the internal trade of his do- 
 minions, attempted, but without success, to 
 disengage himself from his imperious allies. 
 Being defeated at the battle of Geriah, he was 
 
PROGRESS OF BRITISH POWER IN INDIA. 13 
 
 compelled to fly for protection to the Nabob of 
 Oude ; who, taking up arms in his defence, was 
 himself defeated at the battle of Buxar. Meer 
 Jaffier was reinstated in his pageant dignity ; till 
 at length, in 1765, the Dewannee, or entire ad- 
 ministration of the revenues of Bengal, Bahar, 
 and Orissa, was surrendered by the Nabob, and 
 granted by the Mogul Emperor to the Company. 
 Since that time these provinces have remained 
 unmolested in possession of the Company. 
 
 After the defeat of the Nabob of Oude, the 
 Company continued to exercise a commanding 
 influence at the court of that prince, and a corps 
 of British troops was entertained for the defence 
 of his kingdom. Among other arrangements, 
 the principality of Benares, which had been tri- 
 butary to Oude, was transferred to the British 
 government. The Rajah of Benares was soon 
 after driven into a revolt, by the exactions of 
 Mr. Hastings, deposed, and his territories con- 
 verted into a province, directly subject to the 
 Company. Rohilcund, Corah, and Allahabad 
 were, about the same time, conquered by the 
 British, and sold to the Nabob of Oude; but 
 were resumed in 1801, under a new arrangement 
 of Lord Wellesley. The Nabob has since taken 
 the title of King, and retains the civil govern- 
 ment of his dominions, but is dependent upon 
 the Company for military protection. The vic- 
 tories of 1803 released the Mogul Emperor from 
 the hands of Scindia, and gave to us the pro- 
 vince of Delhi, with the care of the Emperor's 
 person. 
 
14 PROGRESS OF BRITISH POWER IX INDIA. 
 
 The aggressions and encroachments of the 
 warlike Ghorkas, who possess the kingdom of 
 Nepaul, on the northern frontier of Hindustan, 
 compelled Lord Hastings to take up arms in 
 defence of the honour and safety of the Company's 
 dominions. In 1814, a British force entered 
 Nepaul; and, in 1815, a sharply-contested cam- 
 paign terminated in the total defeat and entire 
 submission of the Ghorka government. This 
 success was followed by the cession of a large 
 tract of country. 
 
 The last enlargement of our empire had its 
 origin in a similar cause — the unprovoked hos- 
 tility of ambitious neighbours. After a succes- 
 sion of injuries on the part of the Burmese, for 
 which, notwithstanding urgent and repeated 
 complaints, no redress could be procured, it 
 became evident that this warlike nation meditated 
 nothing less than the invasion of Bengal. Ran- 
 goon was, in consequence, occupied by a British 
 force ; and, in 1826, after a protracted warfare, 
 the Burmese submitted to the terms imposed by 
 the conquering army ; by which the Company 
 has become possessed of nearly the whole line of 
 sea-coast which previously belonged to that 
 empire. 
 
 The following, then, is a succinct review of 
 the political relations existing between the Com- 
 pany and the several native powers of India. 
 Of the Mahratta Chiefs, Scindia, alone, retains 
 the full military, as well as civil government of 
 his territories. The courts of Holkar, of the 
 Guicowar, the Rajah of Berar, and of the smaller 
 
THE NATIVE GOVERNMENTS. 15 
 
 principalities, still enjoy all the functions of 
 royalty, except tlie possession of an armed force. 
 They have each, by the cession or conquest of a 
 part of their territories, purchased military pro- 
 tection from the Company. The Rajpoot Chiefs, 
 who occupy the north-west frontier of Hindustan, 
 are tributary, either to the Company, or to the 
 States of Scindia and Holkar. Of the Mahome- 
 dan Governments, the King of Oude, the Nizam, 
 the Rajahs of Mysore and Travancore, and the 
 Nabob of Bhopaul, are the principal states whose 
 civil independence is still recognised by the 
 Company. From their defenceless condition, 
 however, they are virtually dependent upon the 
 British Government, and have no other security 
 for the continuance of their sovereignties, than 
 its equity and forbearance. 
 
 The territories over which the Company exer- 
 cises direct and absolute sway, are, in the pre- 
 sidency of Calcutta, the provinces of Bengal, 
 Bahar, Orissa, Benares, Allahabad, Delhi, Agra, 
 and the districts ceded by the Kings of Oude 
 and Nepaul, and by the Nabob of Ferruckabad. 
 In the presidency of Madras, the Circars, the 
 Carnatic, Malabar, and the countries ceded by 
 the Nizam. In the presidency of Bombay, all 
 the dominions of the Paishwah, except that part 
 which has been granted to the Rajah of Sattarah, 
 with the cessions from the other Mahratta Chiefs 
 in the Deccan, Malwah, Guzerat, and Cutch. 
 The provinces ceded by the Burmese are, Arracan 
 and Tenasserim, with their dependencies. The 
 Island of Penang, or Prince of Wales's Island, 
 
16 EXTENT OF THE BRITISH EM PIKE. 
 
 forms an incorporated settlement, subordinate to 
 the East-India Company.* 
 
 The only colonies which now belong to otlier 
 European nations, are, Pondicherry and Chan- 
 dernagore, to the French ; Goa, to Portugal ; 
 Tranquebar and Serampore, to the Danish Go- 
 vernment; and Chinsurah, to the Dutch. 
 
 The population of the territories directly sub- 
 ject to Great Britain has been estimated at 
 80,000,000 of souls ; while the population of 
 those states which enjoy civil independence, but 
 have been deprived of a military force, has been 
 computed to amount to 40,000,000. The British 
 territory extends over an area of 585,000 square 
 miles ; and the total territory dependent, directly 
 or indirectly, upon the Company, amounts to 
 about 1,180,000 square miles. Such is the 
 mighty empire, for the government and interests 
 of which Parliament is now called upon to 
 legislate. Our first obvious duty is, to inquire 
 into the administration and capacity of that body, 
 under whose auspices it has swelled into such 
 vast dimensions. If the Company has performed 
 well the trust reposed in it, justice requires that 
 its functions should be continued ; and, unless it 
 can be made clearly evident, that a change would 
 ensure improvement, it would be alike inexpe- 
 dient and unjust, to transfer them elsewhere. 
 
 That the extension of our dominions in the 
 East was not a work of deliberate design, on the 
 
 * The British Colonies of Ceylon, and the Mauritius, being 
 subject to the administration of the Colonial-office, an account 
 of their conquest does not fall within the scope of this work. 
 
CIRCUMSTANCES WHICH LED TQ CONQUEST. 17 
 
 part, either of the Company, or of the Govern- 
 ment at home, is testified by the language of 
 every despatch, and of every code of instructions 
 which were forwarded to the local administration 
 in India.'* But at such a distance, control was 
 necessarily imperfect ; and necessity, justice, or 
 expediency, were never wanting as pretexts or 
 excuses for disobedience. 
 
 Invested with power, almost unlimited, the 
 Governors and Commanders in India listened 
 too often to the suggestions of avarice, of glory, 
 or of their zeal for the interests of the Company ; 
 and whatever might have been the previous 
 wishes or instructions of the Directors, they 
 seldom failed to approve the successes which 
 brought wealth into their coffers, — enriched their 
 dependants, and enlarged their possessions and 
 influence in India. Still, however, although the 
 course of our progress was occasionally stained 
 by acts of oppression and injustice, yet in the 
 general character of our proceedings, there was 
 neither a want of fidelity to engagements, nor 
 an inordinate desire of usurpation ; our situation 
 became like that of ancient Rome, and the re- 
 mark of the historian exactly describes it : — 
 AugendcE dominationi causam atque materiam prce- 
 buit, potius i7iconsulta hostium atque emulorumpra- 
 vitas, quam illius ambitio. Our march towards 
 supremacy was such as must always take place 
 
 * The following remarkable declaration forms part of the 
 preamble to the enactments of Mr. Pitt's bill, in 1784 — " To 
 pursue schemes of conquest and extension of dominion in 
 India, are measures repugnant to the wish, the honour, and 
 the policy of this nation." 
 
 B 
 
18 BOARD OF CONTROL. 
 
 when strength comes into collision with weak- 
 ness, and skill with ignorance. Wantonly attacked, 
 the Company defended itself, formed alliances 
 with native powers, was victorious, and added 
 to its acquisitions, or divided amongst its allies, 
 the territories of the conquered. In other in- 
 stances it occurred that feeble states, with which 
 the Company had formed engagements, being 
 assailed by their more powerful neighbours, 
 called upon it for assistance, and agreed to 
 assign portions of their revenues for the support 
 of British subsidiary troops, in lieu of their own 
 armies. The danger being passed, they repent 
 their dependance, a revolt takes place, European 
 discipline and energy are again victorious, and 
 the revolted people are converted from dependant 
 allies into subject provinces. 
 
 In 1773 an act was passed for defining and 
 regulating the powers of the governments in 
 India, on such terms as were rendered necessary 
 by the great extension of dominion which had 
 recently taken place ; but it is not until Mr. 
 Pitt's act, in 1784, that we can date the first 
 great improvement in the management of the 
 affairs of India. By that act the Board of 
 Control was created, and such a system of 
 check introduced, as to render mis-govern- 
 ment almost impossible, except with the concur- 
 rence of the ministry at home. The present con- 
 stitution and duties of the Board of Control, as 
 modified by acts for the renewal of the charter in 
 1793, and in 1813, may be described as fol- 
 lows : — His Majesty appoints Commissioners for 
 the affairs of India, of whom two Secretaries of 
 
BOARD OF CONTROL.^ 19 
 
 State, and the Chancellor of the Exchequer are 
 ex-offido members — the President is the re- 
 sponsible officer of the Board, but the assistance 
 of two other Commissioners is necessary to 
 render its proceedings valid. The Board is in- 
 vested with a control in all matters relating to 
 the government of India, whether civil, military, 
 or financial. It has access to all records and 
 may require abstracts and statements respecting 
 all affairs not strictly commercial. No de- 
 spatches relating to government or revenue can be 
 forwarded to India without its approval. It 
 may even originate instructions, and the Court 
 of Directors, though they may remonstrate, can- 
 not alter them. All despatches received from 
 India must be immediately submitted to the 
 Board ; nor can any public disclosure of their 
 contents take place, except under its authority. 
 No war can be undertaken in India without its 
 sanction. It may grant licenses to individuals 
 to reside in India, and to ships to trade, 
 when such licenses have been refused by the 
 Directors. So extensive, indeed, have been the 
 powers committed to it that whatever may have 
 been the completion of the Company's measures 
 in India, their responsibility is shared by the 
 Board of Control, and through it by the king's 
 ministers at home. 
 
 The following is a brief analysis of the constitu- 
 tion of the Company in London and in India. The 
 Directors are elected by the General Court of 
 Proprietors, who meet four times a year, and to 
 whom it belongs to declare the dividend ; to 
 appoint a committee to frame by-laws, to con- 
 
 B 2 
 
20 CONSTITUTION OF THE 
 
 trol all grants above a certain amount ; and to 
 receive reports from the Directors respecting the 
 general state of the Company's concerns. No 
 proprietor is entitled to a vote unless he be pos- 
 sessed of ^1000 East-India stock ; and the 
 qualification for a Director is ^£2000 stock. 
 There are twenty-four ^Directors, six of whom go 
 out annually in rotation, so that four years is the 
 period of service for each Director ; no Director 
 can be re-elected until he has been out of the 
 direction for at least one year ; thirteen Directors 
 form a Court, and the presence of that number 
 is necessary to give effect to all orders and in- 
 structions which do not emanate from the secret 
 committee. The business of the Company is 
 chiefly conducted by committees and sub-com- 
 mittees, to which are permanently allotted certain 
 defined duties, and which are composed of Direc- 
 tors appointed in the order of their seniority. 
 
 Such is the constitution of the Court of Di- 
 rectors, who, in concert with the Board of 
 Control, enjoy an unlimited command over all 
 proceedings in India. The administration of 
 each of the presidencies of Calcutta, Madras, 
 and Bombay is vested in a Governor and Council, 
 consisting of three members. The Commander- 
 in-Chief may be a Member of Council, without 
 regard to the term of his residence ; but no civil 
 servant of the Company can become Member of 
 Council until he has served ten years in India. 
 The Government of Calcutta is supreme over 
 the other governments in matters relating to 
 peace, war, and revenue. Under the Act of 
 1773, all measures were decided in Council by 
 
EAST-INDIA COMPAN^y. 21 
 
 a majority of votes ; but, during the administra- 
 tion of Warren Hastings, so much inconvenience 
 was found to arise from difference of opinion 
 between the members, that it was enacted, by 
 the 26 Geo. III. c. 16, that, in future, the Go- 
 vernor-General should be allowed to act upon 
 his own responsibility, in extraordinary cases, 
 without the concurrence of his Council. All 
 the proceedings of the governments in India 
 must be recorded by minutes, with a statement 
 of the reasons upon which they have been 
 founded : and it may be supposed that this 
 practice acts as a very useful check upon mal- 
 administration. The governments of India are en- 
 trusted with the entire control over the army, and 
 with the imposition of taxes, in all the dominions 
 of the Company, except the towns of Calcutta, 
 Madras, and Bombay ; and their regulations have 
 the authority of law until reversed by instructions 
 from home. The Governor-General is empowered 
 to apprehend all suspected persons, and either 
 to send them home, to be tried in England, or, 
 having forwarded copies of all depositions in 
 their case, to retain them for judgement in 
 India. Except in case of invasion, or of the 
 most urgent necessity, the Governor- General is 
 restrained from declaring war until the sanction 
 of the Directors and of the Board of Control 
 has been received. The commercial and financial 
 concerns of the Company in India are superin- 
 tended by a Board of Trade and a Board of 
 Revenue. The collection of the revenue is 
 conducted by British collectors, aided by British 
 assistants; but all the inferior business of this 
 department is transacted by natives. 
 
22 company's government in INDIA. 
 
 There are three diiferent classes of Courts of Jus- 
 tice in India. In the first, are the King's Courts, or 
 Supreme Courts of Judicature, whose jurisdiction 
 extends to all British-born subjects residing in 
 the provinces, but, in suits between natives, is 
 limited to the immediate vicinity of the presi- 
 dencies. The Courts which administer justice 
 in those cases in which the natives are con- 
 cerned, are of two kinds, — civil and criminal. 
 The Supreme Civil Court is called the Sudder 
 Dewannee Adawlut. The Courts of Circuit are 
 the next in gradation ; and the lowest Courts in 
 which Europeans preside are the Zillah, or 
 District Courts, including the Court of the 
 Register, who is also an European. The inferior 
 civil judges are natives, under the titles of 
 Sudder Ameens and MoonsifFs ; and their juris- 
 diction is limited to a certain amount, with an 
 appeal to the European judge. The Supreme 
 Criminal Court is the Nizamut Adawlut, and 
 the Criminal Circuit Courts are called Fouzdarry 
 Adawluts. The next in gradation is the Zillah, or 
 European Magistrate's Court, and the lowest Court 
 of Criminal Justice is that of the Daroga, whose 
 functions resemble those of a police officer. 
 In these Courts, justice is administered according 
 to the Mahomedan law, modified by a regard to 
 Hindoo usages, and by the regulations of the 
 British Government. The natives have lately 
 been rendered capable of sitting on juries, and it 
 may be hoped that the introduction of this insti- 
 tution will be attended with the happiest eflfects, 
 in curbing that disposition to pervert justice 
 which is the great political vice of the East, and 
 in supplying the deficiencies, under which an 
 
PATRONAGE OF INDIAN SERVICE. 23 
 
 European judge must always labour, in weighing 
 the evidence of a people with whose habits and ideas 
 he can be only partially acquainted. It is an insti- 
 tution by no means alien to the practice of 
 Indian justice, as there is a slight though very 
 imperfect resemblance to our jury trial in the 
 native Punchayet Courts. 
 
 The whole patronage of India, civil and mili- 
 tary is vested in the Court of Directors, with the 
 exception of the appointments of bishops, and of 
 the judges of the Supreme Courts of Judicature. 
 The Governors in India, and the Commander-in- 
 Chief, are named by the Company, but their ap- 
 pointment must be sanctioned by his Majesty. 
 The King also possesses the power of removing 
 any civil servant from his office in India. 
 
 Having thus become acquainted with the his- 
 tory and constitution of the East-India Com- 
 pany, we may proceed to inquire into its ade- 
 quacy as an organ of government. And, in the 
 first instance, it is but justice to premise that 
 the concurring testimony of all writers, whether 
 hostile or friendly to the Company, bears wit- 
 ness that no part of the empire has produced 
 more able statesmen, or more skilful generals, — 
 and that no where have public functionaries 
 during the last fifty years been less guilty of 
 abuse of the powers committed to them, or have 
 been less open to the imputation of corrupt or 
 unworthy motives. The whole of those vo- 
 lumious records which have been laid before 
 Parliament testify the very general desire which 
 has existed, as well on the part of the Directors 
 at home, as of their servants in India, to frame 
 
24 CHARACTER OF THE 
 
 such a system of judicial, financial, and political 
 arrangements, as should secure the happiness of 
 the people entrusted to their charge. It is a 
 poor enconium upon the Company's government 
 to say that it excels those which it has sup- 
 planted; but, on the other hand, it is not less 
 unreasonable to condemn it, because it has not 
 yet attained that standard of perfection to which 
 it is the desire of all, and of none more than of 
 public men in India, to exalt it. Though not 
 strictly in the way of argument, yet, as an illus- 
 tration of the spirit which animates the Indian 
 administration, it may be not uninteresting to 
 transcribe a government notice, which appeared, 
 last February, in all the Calcutta papers, signed 
 by the Governor-General's private secretary. 
 Notice, " The Governor-General invites the com- 
 '* munication of all suggestions tending to pro- 
 " mote any branch of national industry, — to im- 
 '* prove commercial intercourse by land and 
 *' water, — to amend any defects in existing es- 
 " tablishments, — to encourage the diffusion of 
 " education and useful knowledge, and to ad- 
 ^* vance the general prosperity and happiness of 
 " the British empire in India. This invitation 
 " is addressed to all native gentlemen, land- 
 " holders, merchants, and others ; to all Euro- 
 " peans, both in and out of the service, in- 
 " eluding that useful and respectable body of 
 " men, the Indigo planters, who, from their un- 
 " interrupted residence in the Mofussil, (in- 
 '* terior,) have peculiar opportunities of forming 
 " an opinion upon some of these subjects. The 
 *' Governor-General, after his return from his 
 
company's governme^^t. 25 
 
 " intended voyage, will give private audiences 
 " to native gentlemen, and natives of respecta- 
 " bility, who may wish to see him." 
 
 The present constitution of this sovereign 
 power wears, undoubtedly, a most anomalous 
 appearance, yet it may be doubted whether it 
 would be possible to devise any other system 
 better qualified to answer all the ends of good 
 government. There are many weighty objections 
 against transferring to the King's Ministers the 
 functions at present performed by the Court of 
 Directors. Cabinet arrangements are so fluc- 
 tuating and uncertain, that if the government 
 of India were immediately and solely dependant 
 upon a ministerial office, there would be some 
 reason to fear that its administration would want 
 uniformity and consistency. The total dissimi- 
 larity of Indian institutions to those of England 
 requires a peculiar education, and a long course 
 of study and experience, which it would be 
 scarcely fair to expect, and certainly most diffi- 
 cult to find, in any but a body specially and 
 permanently appointed as the guardians of 
 that empire. Again, there is the constitutional 
 question, whether the power of the Crown can 
 be safely increased by the vast patronage of India, 
 or whether, if vested in the Crown, less regard 
 might not be paid to merit and capacity than to 
 connection and parliamentary influence. The 
 scene is so remote, and so much beyond the 
 range of public opinion, that neglect, if not mis- 
 management, might possibly be the consequence 
 of the absence of any check or restraint : on the 
 other hand, the very tenure by which the East- 
 
26 FITNESS OF THE COMPANY 
 
 India Company holds the sovereignty of India 
 is itself no trifling security against this misrule. 
 The period returning, after short intervals, at 
 which it must render an account of its steward- 
 ship, and when its delegated authority may be 
 resumed, it naturally endeavours to establish 
 such a character as may found a claim for the 
 renewal of its trust. The Directors are persons 
 recommended to their situation by large connec- 
 tion with India, or by having distinguished 
 themselves in the various departments of Indian 
 adventure. They bring to the execution of their 
 office the experience of a life. In the distribu- 
 tion of patronage they are naturally actuated by 
 the same motives which influence the rest of 
 mankind, but such is the delicate nature of In- 
 dian administration, and so responsible is the 
 character with which they are invested, that 
 abilities and integrity form a first and essential 
 requisite, and are recommendations paramount 
 to all other claims. 
 
 To the Court of Directors the Government of 
 India is a primary object. To the Ministry 
 it would be a secondary. The whole undi- 
 vided attention of the Directors is engaged 
 by the empire which they govern. They 
 stand, in fact, in the same relation to India that 
 the colonial legislatures hold to the other British 
 dependencies, with the superior advantage of 
 being exempt from local influence, and of enjoying 
 a more rapid and direct communication with the 
 general government at its fountain-head. Many 
 years must elapse before there will exist in India 
 materials fitted for the construction of represen- 
 
TO GOVERN IN INDIA. 27 
 
 tative assemblies, whose duty it would be to pro- 
 vide for local wants, appropriate the revenues, 
 and check the possible abuses of the executive 
 authority ; and, until this time shall arrive, we 
 shall find it difficult to discover a better substitute 
 than the Court of Directors. Whether, there- 
 fore, we regard abstractedly the constitution of 
 the East- India Company, or measure the pro- 
 bability of obtaining a better instrument of go- 
 vernment, or look to its past conduct and cha- 
 racter, I think we shall be brought to the con- 
 clusion that it would be alike unwise and unsafe 
 to divest it of an authority which it has exercised 
 so much to the advantage both of Great Britain 
 and of India. 
 
 Among the prerogatives with which the Com- 
 pany is at present invested, there is none which 
 has been considered more objectionable than the 
 power of denying to British subjects permission 
 to reside in India. By the 53d Geo. III. c. 155, 
 heavy penalties are imposed upon any British 
 subject who shall proceed to India without license 
 from the Directors or Board of Control. The 
 local governments are also empowered, if they see 
 fit, to send home any European residing in that 
 country, even though in possession of a license. 
 It is also enacted that no British subject shall 
 reside in the interior, at a greater distance than 
 ten miles from the presidencies, without a certifi- 
 cate of leave from the local authorities. Till a 
 very late period, no European was allowed to 
 hold lands either as proprietor or upon lease. By 
 a recent regulation, however, of the present Go- 
 vernor-General, the indigo-planters have been 
 
28 COLONIZATION IN INDIA. 
 
 permitted to take leases of lands from the natives 
 for the cultivation of that plant. The following 
 is a summary of the arguments used by the ad- 
 vocates for the Free Settlement of Europeans in 
 India : — 
 
 It is said that nothing can be more alien to the 
 principles of natural liberty than to shut out the 
 whole of a vast region from the enterprise and 
 industry of persons who own allegiance to the 
 same crown as that to which it is subject. That 
 the whole European community in India, exclu- 
 sive of those who are in the service of the Com- 
 pany, does not exceed three thousand persons, 
 and that the number of British settlers must, 
 under any circumstances, be so small, that it is 
 perfectly ridiculous to apprehend any danger 
 from a body which bears so trifling a proportion 
 to the mass of the population. That the indivi- 
 duals who would be likely to settle in India 
 would be of the most respectable class, as none 
 others would either find it their interest to pro- 
 ceed to a country in which all the lower depart- 
 ments of labour are paid at a rate much inferior 
 to that of England, or, if so inclined, would not 
 be able to bear the heavy expenses of such a dis- 
 tant voyage. That the English settler, mingling 
 with the inhabitants on terms of familiarity, 
 which the dignity of office will not allow to the 
 Company's servant, and establishing a mutual 
 dependence in the business of life, would accus- 
 tom them to English habits, and gradually in- 
 troduce the advantages of western civilization. 
 That more particularly the languishing trade and 
 imperfect cultivation which now render the pro- 
 
COLONIZATION IN INDIA. 29 
 
 ductions of India, — its silk, cotton, tobacco, and 
 other staples, — inferior to those of other countries, 
 would be invigorated and improved by the appli- 
 cation of British skill, capital, and energy. In 
 support of this position, they appeal to the success 
 of the experiment in the case of indigo, which, 
 since its production, has been aided by British ca- 
 pital, has been raised to a quality superior to that 
 of any other that is grown elsewhere, and has be- 
 come a source of great wealth both to the natives 
 and to the European planters. 
 
 On the other hand, it is contended that the 
 free admission of settlers would be inimical 
 both to the safety of the empire and the 
 interests of the Hindoos. That Englishmen, 
 wherever placed, clamour for rights, which 
 it would be impossible to extend to the na- 
 tives, and that thus either a spirit of disaffec- 
 tion would be raised, or civil distinctions, and 
 an ascendancy engendered, which it might be 
 most difficult, at a future period, to counteract. 
 That the Hindoos are a timid race, who would 
 bend before the oppressive and domineering spirit 
 of an European settler ; and that, even if they 
 resisted, the courts of justice are, from necessity, 
 so framed, that a native cannot procure adequate 
 redress against an European without great ex- 
 pense and difficulty. That they are tenacious of 
 a thousand observances, and entertain a variety 
 of prejudices connected with religion and caste, 
 which are respected by the Company's respon- 
 sible servants, but which might be trifled with 
 and insulted by men who have no interest in the 
 preservation of the country beyond the period of 
 
30 FREEDOM OF THE PRESS. 
 
 a temporary speculation, and that thus the minds 
 of the natives might be alienated from our rule. 
 It is difficult, perhaps, to determine, with con- 
 fidence, a question which requires a knowledge 
 of the native character and of the practical ope- 
 ration of our government, to be obtained only 
 by a long residence in India; but I confess it 
 appears to me that these fears are imaginary, 
 and that no necessity, sufficiently urgent, has 
 been shown for depriving men of their natural 
 right to seek their fortunes in whatever country 
 offers the fairest prospect to their enterprise. At 
 the same time it may be doubted whether, in the 
 existing state of India, the government can be 
 safely divested of the power of deportation. 
 There is a certain description of conduct which, 
 though not actually within the cognizance of 
 the English law, might produce the greatest 
 danger to an empire constituted as ours is in 
 India. This prerogative would be a restraint 
 upon turbulent and seditious characters, whilst 
 the outcry which would follow any abuse of it, 
 both in Parliament and in the country, would 
 operate as a sufficient check upon its capricious 
 exercise. 
 
 The question of a free press is, also, one 
 which has produced much discussion. By 
 those who are best acquainted with India, it 
 seems to be considered incompatible with the 
 nature of our dominion in that country, and 
 even those statesmen who have gone out with 
 the strongest prejudices in its favour have been 
 compelled to allow the necessity of curbing its 
 excesses. If it be admitted that we hold the 
 
FREEDOM OF THE PRESS. 31 
 
 sceptre of India, on the basis of absolute power, 
 and that our sway is still endangered by adverse 
 interests and hostile prejudices, which it will 
 require time to conciliate, the arguments against 
 a free press seem to preponderate. The press, if 
 unrestrained, is a power superior to that of any 
 government, and where the embers of discontent 
 exist, it never fails to fan them into a flame. In 
 England, the press controls the government, but 
 the interests of the ruling authorities are so 
 much blended with those of the people, that its 
 operation is scarcely perceived. But, in India, 
 it would be otherwise. All the ancient authorities 
 which have been displaced may be supposed 
 hostile to our power. The natives are at present 
 excluded from all the higher situations in the 
 army, in the collection of the revenue, and in 
 the administration of justice. That this exclusion 
 is beneficial to the mass of the people will not 
 be doubted by those who know the universal 
 corruption, extortion, and oppression which cha- 
 racterise eastern functionaries ; but, in a country 
 so situated, it is evident that there must be a 
 strong current of feeling opposed to the executive 
 authority, which, if aided by the great accession 
 of force derived from a disaffected press, might 
 overwhelm the bulwarks of our power. It will 
 be said, perhaps, that the ruling body of every 
 country ought to be responsible to the people 
 subject to its sway; that, if it studies their wel- 
 fare, it will be supported by their affection, and 
 that, when it fails in this duty, their allegiance 
 is justly weakened or withdrawn. But, with the 
 notions of liberty prevalent in the east, it is idle 
 
32 STABILITY OF THE 
 
 to talk of responsibility to the people. They are 
 not in a condition to exact it. At the same time, 
 though it may be necessary to reserve the power 
 of restraining the press, a wise and liberal 
 government will be lenient in the exercise of it. 
 
 As the uncertainty and instability of our power 
 in India is the common basis of every argument 
 against the introduction of change and improve- 
 ment in the moral, social, or political condition 
 of that country, it is of some importance to 
 examine upon what foundation this alarm rests. 
 With that class of politicians who look upon 
 colonies and dependencies as a burden instead 
 of an advantage, and would circumscribe our 
 national greatness within the precincts of our 
 own isle, this is not a fit occasion to contend. 
 But many, who admit the advantage which Great 
 Britain derives from administering the affairs of 
 a great empire, still think that it is folly to 
 trouble ourselves about a country which we 
 cannot hope to preserve. The supposed danger 
 presents itself under the twofold form of external 
 invasion, and internal revolt. As to the former, 
 it is impossible to predict what events are in the 
 womb of time; but it is not too much to say that 
 there seems, in the circumstances with which 
 India is surrounded, less reason to apprehend its 
 subjugation, by foreign arms, than to expect the 
 conquest of Great Britain itself. With regard 
 to internal revolt, the whole course of history 
 proves with how much difficulty and reluctance 
 the links are broken which bind together subjects 
 and their rulers. A long course of misgovern- 
 ment, or a complete decay in the political body, 
 
BEITISH POWER IN INDIA. 33 
 
 are the only causes which produce the internal 
 dissolution of empires. Of neither of these 
 diseases does the British Government offer any 
 symptom. In India, the desire of conquest is 
 considered the legitimate ambition of an enter- 
 prising prince; and the title which is founded 
 in conquest has so often been recognized by 
 nations who have frequently changed their mas- 
 ters, that submission is less tardy and reluctant 
 than our experience in Europe would lead us to 
 believe. The condition of the natives, under 
 their own governments, was so wretched that 
 the great mass of the people yield an obedience 
 founded upon gratitude for the blessings of our 
 rule. They are now protected from foreign 
 enemies, and secured from internal rapine. For- 
 merly, extortion was not limited to ministers or 
 favourites, but was practised by every subordi- 
 nate agent of government. The taxes are now 
 defined and certain. Formerly, the interference 
 of the judge was only to be procured by bribes ; 
 at present, the administration of justice is pure 
 and impartial at its fountain-head, if not in all 
 its minor ramifications. The government is 
 mild, beneficent, and humane, anxious to pro- 
 mote the extension of such habits and principles 
 as shall qualify the natives to exercise the privi- 
 leges of British citizens. Even that portion of 
 the community who seem to suffer most from our 
 ascendancy have every cause for gratitude. Those 
 Nabobs and Rajahs who, in mercy to their sub- 
 jects, have been deposed, would have been long 
 ago swept away by the invaders and usurpers 
 against whose intrusion they sought refuge under 
 
34 STABILITY OF THE 
 
 the Company's protection. They now enjoy 
 splendid incomes, sufficient to support a state 
 similar to that which is maintained by the first 
 class of English noblemen. From those native 
 princes who still possess independent sovereign- 
 ties little is to be feared, for they have all been 
 disarmed, and the success of their past attempts 
 has not been such as to encourage a rash effort 
 to regain their power to injure us. The de- 
 pendence of the British sway upon a native 
 army is another source of anxiety and alarm. 
 Without dwelling too much upon that singular 
 fidelity which has been so uniformly exhibited 
 by the soldiers of India, and which has shone 
 most conspicuous upon the most trying occasions, 
 it is to be remembered that that army is com- 
 posed of men differing with each other in lan- 
 guage, manners, interest, country, and religion. 
 It is said that above thirty nations contribute to 
 the supply of our native military force, and 
 it is almost impossible that any considerable por- 
 tion of an army, so composed, should be engaged 
 in a common design, or conducted by a common 
 leader. All the superior officers are British, and 
 we know how little formidable is even an armed 
 force when deprived of those to whom it has 
 been accustomed to look for direction and com- 
 mand. The religious prejudices of the Hindoos 
 form, in the opinion of many, an insuperable 
 impediment to the introduction of change. Yet 
 it appears, from the testimony of those who have 
 recently visited India, that the distinctions of 
 caste are rapidly disappearing, that a very general 
 desire of knowledge prevails, that European 
 
BRITISH POWER IN INDIA. 35 
 
 manufactures are freely consumed, (a thing once 
 pronounced very improbable,) and that there is 
 a striking disposition in the natives to conform 
 to all the habits and even fashions of their 
 European rulers. This is, in fact, the nat\iral 
 progression of an intelligent people, under a 
 inild and enlightened government. Nor can it 
 be a matter of doubt that, as education becomes 
 generally diffused, the impure rites and extrava- 
 gant doctrines of a debasing creed will give 
 place to the pure morality and exalted spirit of 
 Christianity. Let us proceed boldly, but not 
 rashly. Whatever may be the dangers of our 
 present situation, ignorance and slavery v^ill 
 form no security. To take away that foreign 
 character which our government wears, and to 
 plant it in the affections of our eastern subjects, 
 we must teach them to feel as British citizens, 
 by extending to them the rights and immunities 
 of the English constitution. Above all things, 
 education will tend to perpetuate our reign. In 
 learning our language, and reading our books, 
 the natives of India will imbibe their spirit, and 
 exchange the feelings and ideas of Asia for the 
 juster notions and more elevated principles of 
 jEurope. 
 
 In drawing up a statement of the Finances of 
 the Company it may be useful to recapitulate the 
 following provisions of the 53 Geo. III. c. 155, 
 which regulate the appropriation of its territorial 
 revenues and commercial profits : 
 
 c2 
 
36 FINANCIAL SITUATION OF THE COMPANY. 
 
 Section 55. The revenues arising from terri- 
 torial acquisitions in India are to be applied — 
 
 1 . In maintaining forces. 
 
 2. In payment of the' interest of debt. 
 
 3. In defraying the expenses of establish- 
 ments, civil and commercial, 
 
 4. In liquidation of the territorial debt, and 
 of the bond debt at home ; or, for such other 
 purposes as the directors and board may think fit. 
 
 Section 56. A sum equal to the payments 
 made in England from the commercial funds, on 
 account of territorial charges, may be advanced 
 out of the revenue in India, for the expenses of 
 the investment. 
 
 Section 57. The commercial profits of the 
 Company are to be applied — 
 
 1. In paying bills of exchange accepted. 
 
 2. In providing for the current payment of 
 other debts, (the principal of the bond debt ex- 
 cepted,) with their interest, and of the commer- 
 cial outgoings, charges, and expenses. 
 
 3. In payment of a dividend of 10 J per cent. 
 
 4. In reduction of Indian debt, or bond debt 
 at home. 
 
 Section 58. The profits are not liable to terri- 
 torial charges, till after the dividend has been 
 provided for, except to bills and certificates for 
 value received in India. If the home funds are 
 insufficient, after the dividend has been paid, to 
 discharge the bills drawn for interest of Indian 
 debt, the deficiency is to be paid as Parliament 
 shall direct. If in any year the commercial pro- 
 fits are insufficient, the dividend may be made 
 good out of the surplus territorial revenue. 
 
FINANCES OF THE COMPANY. 37 
 
 The gross revenue received from the territorial 
 possessions in India amounted, in the year 1 826- 
 1827, to £23,383,497. Supposing the popula- 
 tion, from which this revenue was levied, to 
 exceed 80,000,000 of persons, the average amount 
 of tax paid by each individual, would be little 
 more than five shillings. In England each per- 
 son pays, on an average, in government taxes 
 alone, nearly £4. The principal source of revenue 
 is a tax of about one-fifth of the gross produce 
 of the land. This tax was, in its origin, a sort 
 of rent, the property of the soil being supposed, 
 under the Hindoo and Mahomedan monarchs, to 
 belong to the sovereign ; and the Zemindars, who 
 have been considered, by our regulations, as the 
 proprietors, being originally nothing more than 
 collectors of the revenue. Besides the land- 
 revenue, there are customs, or transit duties, 
 stamps, licenses, and judicial fees. The mono- 
 poly of salt and opium is also a productive source 
 of revenue. It has been our policy to frame the 
 revenue system as much as possible in conformity 
 with the ancient practice, in every thing except 
 uncertainty and extortion. 
 
 The expenditure amounted, in the same year, 
 to £21,574,111, exclusive of £1,749,068 paid 
 for interest on the debt. Of the items which com- 
 pose this charge, the expense of the military 
 establishment is by far the most considerable. 
 The judicial charges are, also, very great ; and 
 the stipends paid to deposed princes amount to a 
 very large sum. 
 
 The total amount of territorial debts in India 
 was, in the same year, £42,870,876, of which 
 
3S FINANCES OF THE COMPANY. 
 
 not more than £34,796,836 bears interest. The 
 total territorial assets were not less than 
 £21,562,989; so that the excess of debts above 
 assets was only £21,307,887, a sum trifling 
 when compared with the revenue, and which, in 
 a political view, may be of great utility, in ren- 
 dering a large class of persons interested in the 
 continuance and stability of the British power. 
 
 There is always, according to one of the pro- 
 visions above cited of the act of 1813, a floating 
 account between the Company at home, and the 
 territorial branch in India, in consequence of the 
 advances furnished by the latter for the purchase 
 of the investment, and of the payments at home 
 for purposes chargeable on the territorial revenue. 
 These purposes are — payment of bills of ex- 
 change from India, for principal and interest of 
 India debt — purchase of military stores — pay of 
 officers on furlough and retired^^ — freight and 
 demurrage on political account — payments on ac- 
 count of King's troops serving in India, which 
 are maintained at the Company's expense ; with 
 other political charges. The total balance due 
 to the commercial branch (rf the Company's 
 affairs for payments of this description, since 
 1814, after setting off the advances in India from 
 the territorial revenue, on account of the invest- 
 ment, was estimated to amount, in May, 1829, 
 to the sum of £4,731,230. Within the same 
 period there had also been set apart, from the 
 surplus commercial profits in England, the sum 
 of £4,923,020, towards the liquidation of India 
 debt, in conformity with the provision above 
 cited, for the appropriation of the commercial 
 
FINANCES OF THE COMPANY. 39 
 
 profits. Without including either of the above 
 advances, the commercial assets of the Company 
 at home are computed to amount to £12,521,153. 
 The commercial debts at home are £1,284,533, 
 exclusive of the home bond debt, amounting to 
 £3,795,892, at 3 per cent., which has not been 
 specifically charged to either branch of the Com- 
 pany's affairs, it not being determined to what 
 extent the debt had its origin in political causes. 
 — The commercial assets in India are estimated 
 at £2,827,779 ; while the commercial debts 
 amount to only £113,655; so that, if the Com- 
 pany, as a commercial concern, were to be imme- 
 diately dissolved, there would remain surplus 
 assets to the amount of £13,940,744, to cover the 
 capital stock. 
 
 The commercial profits of the Company are 
 chiefly derived from its monopoly of the trade in 
 tea. The following statement shows the diffe- 
 rence between the prime cost of tea at Canton 
 and its price at the East-India sales in London, 
 from which an estimate may be formed of the 
 profit on this article. 
 
 Tea purchased at Canton,^ 
 
 
 
 Prime cost. 
 
 Average price per 
 
 Years. 
 
 lbs. 
 
 £ 
 
 
 lb. 
 
 
 1824-25... 
 
 -28,697,088.. 
 
 ..1,900,866.. 
 
 ..l5. 
 
 4c?. r 
 
 learly. 
 
 1825-26..' 
 
 ..27,821,121.. 
 
 ..1,729,949.. 
 
 ..l5. 
 
 3|c?. 
 
 >> 
 
 1826-27... 
 
 ..40,182,241.. 
 
 ..2,368,461.. 
 
 ..Is. 
 
 2d. 
 
 » 
 
 1827-28... 
 
 ..33,269,333.. 
 
 ..2,086,971.. 
 
 ..Is. 
 
 3rf. 
 
 >> 
 
 * All the numerical statements given on this and future oc- 
 casions are taken from returns and accounts which have been 
 laid before Parliament. 
 
40 COMMERCIAL PROFITS. 
 
 Sales in England, 
 
 Sale price. Average price per 
 
 Years. lbs. £ lb. 
 
 1825-26. ...27,803,668.. ..3,572,685. ...2s. \0d. nearly. 
 
 1826-27 .... 27,700,978 .... 3,485,092 .... 2s. Qd. „ 
 
 1827-28 .... 28,120,354. • . • 3,358,955. ... 2s. 5d. „ 
 
 1828-29. . . . 28,230,383. . . . 3,286,272. . . . 2s. 4irf. „ 
 
 It may be proper here to state that the Com- 
 pany is bound to keep a stock of tea in its ware- 
 houses equal to one year's consumption, esti- 
 mated on the sales of the preceding year. There 
 are, also, regulations with regard to the quantity 
 to be put up for sale annually, in order to pre- 
 vent the market from being under-stocked. The 
 quantity put up for sale, and refused by the 
 buyers, in 1828, was 1,317,920 lbs. The Com- 
 pany's exports to China consist almost entirely of 
 woollens ; and it is said that this branch of its 
 trade is wholly unproductive of profit. The in- 
 voice value of imports into China from England 
 was as follows in the undermentioned years : — 
 
 Years. £ 
 
 1824-25 688,059 
 
 1825-26 912,939 
 
 1826-27 764,418 
 
 1827-28 709,261 
 
 The Company has lately sent little merchandize 
 to India except military stores, which, being 
 charged to the territorial account, do not enter 
 into a statement of the commercial profits. It 
 imports, however, to a considerable amount, from 
 that country, raw silk, indigo, and other articles. 
 The following is a return of the prime cost of all 
 cargoes purchased by the Company in India and 
 
COMMERCIAL PROFITS.. 41 
 
 shipped for Europe, in the undermentioned 
 years : — 
 
 Years. £ 
 
 1824-25 1,637,794 
 
 1825-26 1,646,590 
 
 1826-27 1,822,924 
 
 It is also said that, by this branch of trade, the 
 Company gains nothing. The accounts laid be- 
 fore Parliament are drawn up in such a manner 
 that it is difficult to determine, accurately, the 
 profit or loss. 
 
 In addition to the profits on its trade, the Com- 
 pany is entitled to a certain duty upon goods 
 imported by the private and privileged trade, 
 warehoused and sold, through its medium. From 
 the gross profits arising from the trade a large 
 deduction is to be made for the expenses of 
 freight and demurrage. The commercial freight 
 and demurrage amounted, in the following years, 
 to the undermentioned sums : — 
 
 Years. £ 
 
 1826-27 692,817 
 
 1827-28.' 783,759 
 
 1828-29 662,964 
 
 After paying all the other expenses of the 
 commercial establishment, interest on the bond 
 debt, &c. the dividend remains to be provided 
 for. The capital stock of the Company is 
 £6,000,000 ; so that, at 10|^ per cent, it requires 
 a net profit of £630,000 per annum to pay the 
 dividend. In the Appendix will be found an 
 official statement of the Company's finances, ter- 
 ritorial and commercial, brought down to May, 
 1829. 
 
 By the Act 53 Geo. III. c. 155, the trade to 
 
42 TRA]:)E TO INDIA. 
 
 India (exclusive of China) was thrown open to 
 private merchants, but was still, in some measure, 
 impeded by enactments which required that all 
 ships passing to the eastward of the Cape of 
 Good Hope should exceed 350 tons of burthen, 
 and which rendered it necessary to procure a 
 license to trade from the Court of Directors, or, 
 upon their refusal, from the Board of Control. 
 This act also provided that certain articles of 
 Indian produce should be brought to the port of 
 London alone. British ships were still prevented 
 from trading between ports without the kingdom, 
 and places within the limits of the East-India 
 Company's charter. These restrictions have been 
 much relaxed by the 4th' of Geo. IV. c. 80. The 
 export of military stores to India, the monopoly 
 of tea, and the exclusive trade to China, are still 
 reserved to the Company, ]but ships without limi- 
 tation as to burthen may clear out, without li- 
 cense, for any place eastward of the Cape of 
 Good Hope, except for minor ports between the 
 Indus and Malacca. A license is still necessary 
 to proceed to any other except the four principal 
 settlements — Calcutta, Madras, Bombay, and 
 Prince of Wales's Island, within these limits. 
 Vessels returning from India may now be ad- 
 mitted to entry in any of the warehousing ports 
 of Great Britain, and trade is permitted between 
 foreign ports, and places within the limits of the 
 Company's charter. This Act does not, however, 
 repeal the provisions of the Act of 1813, re- 
 specting the resort of individuals to India without 
 license, or residence in that country without a 
 certificate of leave. 
 
EFFECT OF OPENING THE TRADE. 43 
 
 The effect of opening the trade to India has 
 been greatly to increase its amount. The highest 
 value of goods exported to India in any year 
 between 1 792 and 1 8 11 did not exceed £2,475,987 
 (the exports of 1808). It will be seen, hereafter, 
 that this amount falls very short of the annual 
 value of the present exports. The increase has 
 chiefly taken place in the export of cotton-manu- 
 factured goods. Previous to 1813, the amount 
 of cotton goods exported to India was very 
 trifling. They now fall very little short of 
 ^2,000,000 in value annually. This augmen- 
 tation may, however, in great measure be attri- 
 buted to the extraordinary improvement which 
 has taken place in our manufactures, attended by 
 a great reduction of price, and to the extension 
 and consolidation of the British power in India. 
 Of the operation of the former of these causes, 
 we shall be enabled to judge by comparing the 
 prices of British calicoes in 1813, with their 
 prices in 1828. 
 
 Prices in October, 1813. Prices in October, 1828. 
 
 s. d, s. d. 
 
 f Cambrics 12 yards* '20 per piece •• 8 6 per piece 
 
 Do ...27 do. 11 9 do. 
 
 Do 39 do. 16 6 do. 
 
 I Shirting 1 2|per yard • • 6 per yard 
 
 Do 1 11 do. 10 do. 
 
 Do 2 4 do. 1 2 do. 
 
 Note, — The goods in 1828 are ten per cent, better. 
 
 It is but fair to state, however, that it was 
 doubted by many of the most enlightened of the 
 Company's servants whether the natives of India 
 would ever be brought to consume largely Euro- 
 
44 IMPORTS FROM THE EAST INDIES ANDCHINA. 
 
 pean manufactures, and that the Company's ex- 
 ports to China have declined rather than increased 
 under the same favourable circumstances. 
 
 The following statement shews the amount of the 
 exports to India and China from England, 
 
 By the Free Trade to India, 
 Years. Total to Indiaand China. and Privileged Trade to 
 
 China. 
 
 £ £ 
 
 1825 3,918,071 2,574,660 
 
 1826 4,468,883 2,625,888 
 
 1827 5,201 ,599 3,903,006 
 
 1828 5,212,353 4,085,426 
 
 Exports, by the East-India Company, to India 
 and China. 
 
 Years. Merchandize for sale. Stores. Total. 
 
 £ £ £ 
 
 1825-26 754,832 501,518 1,256,350 
 
 1826-27 826,055 907,833 1,733,888 
 
 1 827-28 494,922 807,354 1 ,302,276 
 
 1828-29 636,441 462,369 1,098,810 
 
 The greater part of this merchandize was sent to China, the 
 stores to India. 
 
 It remains to the exhibit the state of the import 
 trade, and it is to be observed that the increase 
 of the imports produced by the opening of the 
 trade to India has not been quite proportioned 
 to that of the exports. 
 
 Imports into Great Britain from the East Indies 
 and China, 
 
 Years. Produce of India. Produce of China. Total. 
 
 £ £ £ 
 
 1825 6,118,468 4,435,949 10,554,417 
 
 1826 6,394,287 4,294,582 10,688,869 
 
 1827 5,552,288 5,110,450 10,662,738 
 
 1 828 6,923,908 4,296,668 11 ,220,576 
 
COUNTRY TRADE OF BRITISH INDIA. 45 
 
 The following statement shews the proportions 
 respectively imported by the Company and the 
 Private Trade. 
 
 
 
 By the Free and Privi- 
 
 
 fears. 
 
 By the Company. 
 
 leged Trade. 
 
 Total. 
 
 
 £ 
 
 £ 
 
 £ 
 
 ^R1^, . 
 
 . . .. fi "^7^ 409 .. 
 
 ,....'» 178 ^1^ 
 
 . 10,554,417 
 . 10,688,869 
 . 10,662,738 
 . 11,220,576 
 
 189fi. • 
 
 • , ,, ^ n7fi "^fio- . 
 
 , . . . . 'i fil9 '^OQ.... .. 
 
 1897. . 
 
 . . .. fi 148 077. . 
 
 . . . .4 /^l/t fifil 
 
 1828.. 
 
 ....5,576,905.. 
 
 ....5,643,671 
 
 It will be seen, from the above returns, tbat not 
 only is the trade to India free, but that the ex- 
 port trade to India is almost wholly conducted 
 by private merchants, and that of the import trade 
 a much larger proportion is carried on by private 
 traders than by the Company. 
 
 This survey of our Eastern trade will not be 
 complete without noticing the commerce called 
 the country trade, which is carried on between 
 the different ports of India and China. The 
 following is an account of the quantity of ton- 
 nage, employed annually in the country trade, 
 between the different Ports of India and Canton. 
 
 Ea'ported from the Ports of British India for 
 Canton, 
 
 Years. Ships. Tonnage. 
 
 1824-25 53 37,870 
 
 1825-26 48 30,010 
 
 1826-27 75 49,113 
 
 Imported from Canton to the Ports of British 
 India, 
 
 Years. Ships. Tonnage. 
 
 1824-25 46 20,074 
 
 1825-26 43 21,748 
 
 1826-27 52 26,424 
 
46 EXCLUSIVE TRADE TO CHINA. 
 
 The value of the cargoes imported into Canton 
 on the tonnage employed in the country trade 
 was as follows : — 
 
 Years. Dollars. 
 
 1824-25...^ 11,024,559 
 
 1825-26 15,700,878 
 
 1 826-27 15,709,232 
 
 1 827-28 15,845,643 
 
 Note. — ^The privilege trade of the commanders and offi- 
 cers of the Company *s ships is included in this statement. 
 
 The above cargoes consisted chiefly of opium 
 and cotton. The value of the opium imported 
 into China in 1827-28 was not less than 
 11,243,496 dollars, (10,271, chests). The value 
 of the cotton was 3,480,083 dollars. 
 
 The trade of the United States with India is 
 inconsiderable. The ships and tonnage which 
 cleared out from ports in India for America were 
 as follows, in the undermentioned years : — 
 
 Years. Ships. Tonnage. 
 
 1 824-25 11 3,087 
 
 1825-26 20 5,743 
 
 1826-27 8 2,389 
 
 The Island of Sincapore, with the adjoining 
 country of Malacca, was ceded to the Company 
 in 1824, by the Dutch, in exchange for Bencoo- 
 len. It was incorporated with Prince of Wales's 
 Island and has become a most flourishing 
 settlement. The value of its imports and ex- 
 ports, in 1827-28, amounted to little less than 
 £3,000,000. 
 
 We now come to the consideration of the 
 exclusive trade to China, that part of the Com- 
 pany's privileges which is supposed to be most 
 
EXCLUSIVE TRADE TO CHINA. 47 
 
 injurious to the trade and manufactures of Great 
 Britain. 
 
 The following are the arguments most com- 
 pionly used in favour of a free trade with China : 
 That the present monopoly of the tea- trade en- 
 hances the price of tea to consumers in England 
 to a very great extent, and that a heavy tax is 
 thus levied upon one of the most essential ne- 
 cessaries of life. That while the exports to In- 
 dia have gradually increased since the liberation 
 of the trade, there has been no corresponding 
 increase, but on the contrary, a considerable di- 
 minution in the amount of merchandize exported 
 by the Company to China. That our experience 
 with regard to India, assures us that the con- 
 sumption of British merchandize, by the Chinese, 
 may be augmented to a much greater amount 
 than it has yet reached, when the activity and 
 enterprize of private adventure shall have sucr 
 ceeded in opening new channels of intercourse, 
 and when competition shall have reduced the 
 price of commodities in their market. That at 
 present the markets of Europe and of the world 
 are supplied by other commercial nations with 
 tea, and all articles of Chinese production, and 
 that the Americans even export to China British 
 manufactures to a considerable amount, which 
 might be exported with greater profit and ad- 
 vantage by British merchants, if they were not 
 excluded from this trade. To these arguments 
 it is replied, that the monopoly of the tea-trade 
 is, in fact, the only peculiar advantage which 
 the Company, as a commercial body, enjoys, and 
 that, without the profit arising from this mono- 
 
48 EXCLUSIVE TRADE TO CHINA. 
 
 poly, it would be impossible to provide for the 
 payment of the dividends. That these dividends 
 have repeatedly received the guarantee of Par- 
 liament, and that it would, consequently, be a 
 breach of faith to take away the only source 
 from which their payment is derived. That the 
 tax imposed upon the consumer by the mono- 
 poly is in fact insignificant, and that the reduc- 
 tion of the price of tea, if any should take 
 place, would be scarcely felt, inasmuch as the 
 high price of that article is chiefly owing to the 
 enormous duty levied upon it by Government. 
 That the consumption of tea in all parts of the 
 world, except Great Britain, its colonies, and 
 the United States of America, is inconsiderable ; 
 that although it is true, that in some parts of 
 Europe, tea has been sold at a price below that 
 of the teas sold by the Company, still this is by 
 no means universally the case ; and that on many 
 parts of the Continent, and particularly in Rus- 
 sia, teas are sold at a much dearer rate than the 
 teas of the same quality in England : and, lastly, 
 That, from a comparative view of the American 
 trade with China, it does not appear, although 
 the trade is perfectly unrestrained, that there has 
 been any such increase of the exports and im- 
 ports as is predicted to be one of the infallible 
 consequences of throwing open the trade to 
 China ; and that with respect to the export of 
 British goods by Americans, it would clearly 
 be their interest, under any circumstances, to 
 carry out English productions rather than to go 
 out with empty vessels, and that such an export 
 is highly advantageous to British manufacturers. 
 
SUPPLV OF FOREIGN MARKETS. 49 
 
 The following facts are brought forward in sup- 
 port of the preceding arguments : — 
 
 The duty upon tea amounts to 96 per cent, on 
 its sale price, if sold under 2^. per lb. ; and 100 
 per cent, upon all tea sold at 2^. per lb. and up- 
 wards. The total amount of revenue received 
 upon the article of tea, in the year 1828, was no 
 less than £3,448,814, and in former years this 
 receipt has been exceeded. A pound of tea, 
 therefore, bought at the India sales at 2^. 6d. per 
 lb. (the orninary price for good black teas,) be- 
 comes immediately taxed with a duty of 2^. 6d, 
 and, if to this sum be added the charges of 
 brokerage, and the retail profits, the pound 
 which was sold by the Company at 2^. 6d. can 
 now scarcely be sold under 6 or 7 shillings. 
 It is evident that nothing can be more unjust 
 than to charge to the East-India Company the 
 difference between this price and the price of the 
 same article in a neighbouring country, which, 
 but for the tax, would probably vary little from 
 the original cost at the East- India sales. From 
 the following returns we shall be enabled to per- 
 ceive the proportion which the foreign trade in 
 tea of the Americans bears to the supply afforded 
 to foreign countries through the East-India Com- 
 pany. The quantity of tea re-exported from 
 Great Britain was as follows, in the years 1826, 
 1827, and 1828. 
 
 Years. lbs. 
 
 1826 279,070 
 
 1827 254,944 
 
 1828 259,493 
 
 Exclusive of this export, the Company sup- 
 
 D 
 
50 TRADE OF THE UNITED 
 
 plied the Cape of Good Hope and the North 
 American Colonies with the following quan- 
 tities : — 
 
 North American Colonies. Cape of Good Hope. 
 
 Years. lbs. £ lbs. £ 
 
 1825-26.. 512,314.. 74,085 120,172- 20,033 
 
 1826-27.. 723,081.. 82,645 104,545- .17,361 
 
 1827-28.. 941,794.. 109,635 90,538- .14,573 
 
 The value and amount of tea re-exported from 
 the United States in 1826 and 1827, were as 
 follows : — 
 
 Years. Dollars. lbs. 
 
 1826 1,308,694 2,804,753 
 
 1827.... 772,443.... 1,626,417 
 
 But, as it is probable that much tea was car- 
 ried directly from China to the foreign market, 
 we must refer to another statement, which shows 
 the amount destined for European consumption, 
 upon its export from China. By consulting this 
 account we find that there has been a gradual 
 decline in the amount of tea exported from Can- 
 ton by the Americans, with a view to foreign 
 consumption. 
 
 It was in 1819-20 3,318,156 lbs. 
 
 1825-26.... 1,360,800 
 1826-27.... 357,966 
 
 The returns given in the Appendix will show 
 how great a decline there has been in the total 
 exports and imports of the United States to and 
 from China. These facts are stated not with the 
 intention of denying that a considerable increase 
 of trade might result from the destruction of the 
 Company's monopoly, or that some reduction 
 might take place in the price of tea; but, in 
 
STATES WITH CHINA,. 51 
 
 order to show that the experience of the United 
 States justifies no very sanguine expectation of 
 an extended commerce. 
 
 The papers relating to the trade with India 
 and China, which were laid before the House 
 of Commons, in the last session, contain much 
 curious information, collected by the consuls 
 abroad, respecting the consumption of tea and 
 its price, in the different countries of Europe. 
 It all tends to show that the difference between 
 the prices of tea, on the continent and in Eng- 
 land, is not so great as is commonly imagined, 
 and that the whole consumption of Europe, in 
 this commodity, is so inconsiderable as to make 
 it a very unimportant article of trade. 
 
 It appears, from these papers, that the 
 whole annual consumption of Russia is about 
 5,I87,4961bs. which is entirely supplied by over- 
 land trade from China; its import is prohibited 
 in all the Russia ports in Europe, except Odessa. 
 The following is given as a list of ordinary 
 prices at St. Petersburgh :— 
 
 Black Teas. 
 
 Common Tea (lowest price) 5s. lOd. per lb. 
 
 Bohea 6s. 9d. ,, 
 
 Losana ososka • • • • . 1 7s. 6d. ,, 
 
 Rose Tea 29s. 2d. „ 
 
 Green Teas. 
 
 Common 6s. 9|c?. „ 
 
 Superior Green, called Tschin Tschay 14s. 7c?. „ 
 
 Losana Bouquette (highest price) .... 38s. lO^d. „ 
 
 The consumption of Hamburgh, which is the 
 great emporium for this article in the north of 
 Germany, is not supposed to exceed, annually, 
 
 D 2 
 
52 CONSUMPTION AND PRICE 
 
 l,650,300lbs.; and it is stated that the prices 
 have been much reduced in consequence of the 
 market being overstocked. The following is a 
 list of prices ; they are certainly much lower 
 than the price of corresponding teas in England, 
 and it is said lower, in some instances, than the 
 cost price at Canton : — 
 
 Bohea ....•.••Os. 5d. to ^s.l\d. per lb. 
 
 Souchong Os. 5d. ,, Is. 3^r/. ,, 
 
 Young Hyson. •• •Os. 9fZ. ,, Is. 4|c^. ,, 
 
 Pekoe 2s. lOfrf. „ As. Id. 
 
 Gunpowder • • • • 2s. 4i-cZ. „ 2s. 9|c/. „ 
 
 The consumption of tea, in France, averages, 
 annually, only 220,053lbs. The prices current 
 are nearly the same as at the Company's sales ; 
 but the comparison is somewhat in favour of the 
 cheapness of tea in France. The quantities of 
 tea imported into Italy and Trieste are perfectly 
 insignificant : — 
 
 Tea imported into Naples, 3,4191bs. year 1827 
 ,, ,, Venice, 2 cwt. per annum. 
 
 ,, ,, Trieste, 5 cwt. „ 
 
 „ ,, Leghorn, 353 chests ,, 
 
 Prices at Dantzic are as follow : — 
 
 Congou 2s. 6rf. to 3s. A^d. per lb. 
 
 Hyson 3s. lOc^. „ 4s. lOd. „ 
 
 Gunpowder .... 7s. 8^c?. „ 9s. 8c?. „ 
 
 Pekoe 7s. M. „ 13s. 6d. „ 
 
 These prices are much higher than the current 
 price at the Company's sales. The price of tea, 
 at Frankfort, is also greater than its price in 
 London. The consumption was, in 1828, 1 12cwt. 
 
OF TEA ON rUE CONTIj^ENT. 53 
 
 The yearly consumption of tea, in Denmark, is 
 about 129,000lbs. The quantity of tea imported, 
 annually, into the United States, is very con- 
 siderable : — 
 
 Years. 
 
 lbs. 
 
 Value, in Dollars. 
 
 1826... 
 
 ...10,098,900.. 
 
 3,752,281 
 
 1827... 
 
 ... 5,875,599.. 
 
 ....1,714,850 
 
 It is entirely imported in American vessels. 
 
 The annual consumption of tea, in the Ne- 
 therlands, is computed to amount to about 
 2,500,000lbs. The following is given as a list 
 of prices at Rotterdam : — 
 
 per lb. 
 
 Bohea Os. 
 
 Sd. 
 
 to Is. 7d. 
 
 Congou Is. 
 
 lid. 
 
 „ Is. U^d. 
 
 Souchong ...'Is. 
 
 Hd. 
 
 „ 3s. Sid. 
 
 Hyson 2s. 
 
 5d. 
 
 „ 3s. 2d. 
 
 Gunpowder* • • • 3s. 
 
 Od. 
 
 „ 4s. 6d. 
 
 Pekoe 3s. 
 
 Ud. 
 
 „ 6s. Od, 
 
 As the duty is very trifling, a comparison may 
 be made between these prices and those of the 
 India sales. The following is the price current 
 of the September sales in 1829: — 
 
 Bohea* Is. 6d. to ]s. lid. per lb. 
 
 Congou 2s. Id. ,, 3s. 3d. ,, 
 
 Souchong 3s. 4<Z. ,, 4s. lie?. ,, 
 
 Hyson Skin ..•.2s. 2d. „ 3s. 7d. „ 
 
 Hyson 3s. Sd. „ 5s. Ad, ,, 
 
 Gunpowder ''"Ss. 2d. „ 5s. 10c?. ,, 
 
 Pekoe Ss.lOd. „ 4s. lid. 
 
 After balancing the conflicting arguments, and 
 the facts by which they are supported, I think 
 
54 OPINION RESPECTING THE TRADE TO CHINA. 
 
 we may conclude, that the liberation of the trade 
 to China would be an undoubted advantage to 
 the trade and manufactures of Great Britain. 
 Except in the article of tea, the Company would 
 suffer little from the participation of private 
 merchants in the commerce of China, as its 
 import of other commodities is very inconsider- 
 able. With respect to tea, it is a question of 
 convenience alone, whether the Company shall 
 still retain the monopoly. 
 
 To its capacity as a sovereign body, the com- 
 mercial department of the Company's affairs has, 
 evidently, become subordinate ; and it is probable, 
 that its establishments are on a more costly scale 
 than becomes the frugal character of private 
 trade. For this reason, a slight reduction might 
 be expected in the price of tea, if the trade were 
 carried on by private merchants. At the same 
 time, it is necessary to consider, whether any better 
 resource can be found for the payment of the divi- 
 dend on India stock, and of the interest on the India 
 bonds. The public faith is as clearly engaged in 
 the discharge of these obligations, as in that of 
 any other of the public funds ; for, from the time 
 that Parliament interfered in the commercial 
 concerns of the Company, and fixed the divi- 
 dends at a certain rate, it virtually, and m equity, 
 became guarantee of their eventual payment. 
 It has determined, that the surplus commercial 
 profits shall be applied to purposes with which 
 the Company, as a commercial body, has no 
 concern ; and it has also provided, that, even on 
 failure of sufficient profits, there shall be no 
 
CONCLUSIOX. ,: 55 
 
 diminution in the rate of the dividend. The 
 present holders of East-India stock, therefore, 
 have purchased it, at a price computed upon 
 the certainty of its producing a perpetual interest, 
 equal to that which it at present bears. Under 
 these circumstances, it becomes a question, whe- 
 ther it is not better to provide for this charge, by 
 a slight enhancement of the price of tea, than 
 by throwing it upon the other public burthens. 
 Add to this consideration, the great loss and 
 inconvenience to be sustained in breaking up an 
 old commercial concern, involving a thousand 
 vested interests, for which it will be necessary to 
 provide compensation ; and, I think, we shall 
 find, that the balance will be found to prepon- 
 derate in favour of the expediency of continuing 
 this monopoly in the hands of the Company. 
 
 In conclusion. The reader will perceive, that 
 the opinions to which he has been conducted, by 
 the reasoning and facts set forth in this book, may 
 be recapitulated as follows : that it would be 
 highly impolitic to disturb the present system of 
 governing India, as that system is, upon the 
 whole, better qualified to promote the happiness 
 of our Indian subjects, than any other which we 
 could substitute : that the free settlement of 
 Europeans, should be encouraged, without, how- 
 ever, depriving the Government of the power of 
 removing turbulent and seditious individuals ; 
 that the strictures of the press upon political 
 questions should be restrained, but not silenced : 
 and, lastly, that the trade to China, except in 
 the article of tea, should be thrown open to pri- 
 
56 CONCLUSION. 
 
 vate merchants, and liberated from all unneces- 
 sary restrictions and impediments. 
 
 In contemplating this vast empire, won by the 
 most undaunted valour, and the most consummate 
 skill, aided by a course of uninterrupted good 
 fortune, which has no parallel in the history of 
 any country, it is impossible not to glow with 
 exultation at the glorious prospects which its ac- 
 quisition has opened to Great Britain. To the 
 statesman, it presents a field, in which the happi- 
 ness T)f one-tenth of the whole human race may 
 depend upon his exertions. To the merchant it 
 has afforded a wide scope for commercial enter- 
 prise, and pours a rich tide of wealth to swell the 
 resources of his country. The scholar has been 
 furnished with a new and unopened source for 
 the pleasures of scientific research and gratifica- 
 tion of literary curiosity. It invites with an 
 irresistable call the missionary labours of the 
 Christian philanthropist, and holds out as the 
 reward of his pious endeavours, the dethrone- 
 ment of a benighted religion, and the propagation 
 of a pure and sublime faith. Fortunately we live 
 in times in which there is little to obstruct the 
 realization of the most sanguine hopes. There is 
 now no combat to be fought with bigotry, or 
 prejudice, or self-interest. Even those whose 
 power and interests are at stake, ask no more than 
 impartial inquiry, and a just award. We may 
 feel assured, that they will receive an equitable 
 decision from the verdict of an enlightened public, 
 at the tribunal of a firm administration, and an 
 intelligent Parliament. Whilst, on the other 
 
CONCLUSION. , 57 
 
 hand, as much concession will be made to the 
 commercial spirit and liberal policy of the age, 
 as is consistent with the security of the British 
 empire in India, and the well-being of its im- 
 mense and varied population. 
 
APPENDIX. 
 
60 
 
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 65 
 
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66 
 
 APPENDIX. 
 
 EAST-INDIA TRADE. 
 
 Return of the Number of Ships cleared out from the different 
 Ports in the United Kingdom, for British India, in each 
 Year, from 1801 to 1828, both inclusive; specifying their 
 Tonnage, the Number of Seamen employed in navigating 
 them, whether British or Indian, and distinguishing* the 
 Ships belonging to or chartered by the East- India Company, 
 from those of Private Merchants. 
 
 
 Total Number of Ships 
 
 Ships belonging to. 
 
 
 cleared out from the Ports 
 
 or chartered by, the 
 
 
 of the United Kingdom. 
 
 East-India Company. 
 
 
 Ships. 
 
 Tons. 
 
 Men. 
 
 Ships. 
 
 Tons. 
 
 Men. 
 
 In the Year 1801 
 
 1 . . 
 
 . 
 
 - - r 
 
 32 
 
 26,141 
 
 2,859 
 
 1802 
 
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 - - 
 
 43 
 
 34,736 
 
 3,852 
 
 1803 
 
 . - 
 
 - 
 
 - - 
 
 50 
 
 33,516 
 
 3,437 
 
 1804 
 
 - - 
 
 . 
 
 - . 
 
 44 
 
 35,403 
 
 4,111 
 
 1805 
 
 *rhe Books containing 
 
 42 
 
 32,216 
 
 3,462 
 
 1806 
 
 the Accounts for these 
 
 39 
 
 33,668 
 
 3,819 
 
 1807 
 
 > Years, were destroyed •<{ 
 
 39 
 
 28,476 
 
 3,062 
 
 1808 
 
 in the Fire at the late 
 
 36 
 
 31,737 
 
 3,646 
 
 1809 
 
 Custom House. 
 
 41 
 
 32,408 
 
 3,300 
 
 1810 
 
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 - 
 
 . - 
 
 46 
 
 37,070 
 
 4,103 
 
 1811 
 
 - - 
 
 - 
 
 - - 
 
 43 
 
 35,311 
 
 3,823 
 
 1812 
 
 . . 
 
 . 
 
 _ . 
 
 42 
 
 34,223 
 
 3,731 
 
 1813 
 
 . . 
 
 . 
 
 - . 
 
 29 
 
 28,001 
 
 2,975 
 
 1814 
 
 52 
 
 39,141 
 
 4,342 
 
 36 
 
 34,819 
 
 3,524 
 
 1815 
 
 121 
 
 79,980 
 
 8,610 
 
 26 
 
 29,177 
 
 2,603 
 
 1816 
 
 166 
 
 99,936 
 
 9,412 
 
 26 
 
 26,063 
 
 2,894 
 
 1817 
 
 195 
 
 106,847 
 
 8,543 
 
 22 
 
 22,326 
 
 2,305 
 
 1818 
 
 186 
 
 104,692 
 
 8,210 
 
 32 
 
 29,245 
 
 3,048 
 
 1819 
 
 106 
 
 66,525 
 
 5,606 
 
 35 
 
 27,419 
 
 2,546 
 
 1820 
 
 109 
 
 69,265 
 
 5,731 
 
 22 
 
 23,473 
 
 2,425 
 
 1821 
 
 96 
 
 68,155 
 
 5,811 
 
 25 
 
 29,468 
 
 2,859 
 
 1822 
 
 102 
 
 73,102 
 
 6,267 
 
 25 
 
 24,928 
 
 2,504 
 
 1823 
 
 111 
 
 68,468 
 
 5,951 
 
 24 
 
 26,484 
 
 2,699 
 
 1824 
 
 117 
 
 79,283 
 
 6,973 
 
 25 
 
 27,580 
 
 2,819 
 
 1825 
 
 139 
 
 81,103 
 
 7,095 
 
 32 
 
 33,205 
 
 3,188 
 
 1826 
 
 150 
 
 88,700 
 
 7,443 
 
 26 
 
 28,985 
 
 2,675 
 
 1827 
 
 194 
 
 98,479 
 
 7,929 
 
 35 
 
 37,699 
 
 3,708 
 
 1828 
 
 209 
 
 109,155 
 
 8,574 
 
 39 
 
 41,388 
 
 3,929 
 
 Note. — The above account includes the trade with China, as vessels 
 whose ultimate voyage is to that country, usually clear out for the 
 East Indies also. 
 
 * The distinction in the account is supplied from documents trans- 
 mitted by the directors of the East-India Company. 
 
 Office of Register General of Shipping, 
 
 Custom-House, London, 
 
 5th May, 1829. 
 
 T. E. 
 
 WiLLOUGHBY, 
 
 Reg. Gen. 
 
APPENDIX. , 67 
 
 EAST-INDIA TRADE. 
 
 RETURN to an Order of the Honourable the House of Commons, 
 dated 6th February, 1829;— /or 
 
 ACCOUNTS, 
 
 Of all Goods exported from Great Britain to the 
 East Indies and China; of the Value of all Articles, 
 being the Growth or Manufacture of the United 
 Kingdom, exported by the East-India Company; of 
 all Goods exported from Great Britain to the East 
 Indies and China, specifying the declared Value of 
 the principal Articles ; of all Goods, being the Pro- 
 duce of the East Indies and China, imported into 
 and exported from Great Britain ; and of all Goods, 
 the Produce of the East Indies and China, imported 
 into Great Britain, specifying the Value of the prin- 
 cipal Articles; for the Year ending 5th January, 1829. 
 
68 
 
 APPENDIX. 
 
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74 
 
 APPENDIX. 
 
 Value of all Imports into Great Britain from the East Indies and 
 China, together with Mauritius — Year ending 5th of January, 1829. 
 
 SPECIES OF MERCHANDIZE. 
 
 Borax, refined , 
 
 unrefined , 
 
 Camphire, unrefined 
 
 Canes, Ratlans not ground 
 
 Cassia Lignea 
 
 Cinnamon 
 
 Cloves 
 
 Coffee 
 
 Cotton Wool , 
 
 Cotton Piece Goods, viz. White Calicoes and 
 Muslins 
 
 Ebony 
 
 Elephants' Teeth 
 
 Galls 
 
 Ginger 
 
 Gum^ Animi and Copal 
 
 Arabic 
 
 Lacdye 
 
 Shellac 
 
 Hemp 
 
 Indigo 
 
 Mace 
 
 Nanquin Cloths.. . . 
 Dyed Cottons.. . . 
 
 Mother of Pearl Shells, rough, 
 
 Nutmegs 
 
 Oil, Castor 
 
 Olibanum 
 
 Pepper 
 
 Rhubarb 
 
 Rice 
 
 Rice in the Husk or Paddy. 
 
 Safflower 
 
 Sago 
 
 Saltpetre 
 
 Silk, raw , 
 
 Silk Manufactures, viz. Bandannocs, Romals 
 
 and Handkerchiefs 
 
 Crape in pieces 
 
 Crape Shavpls, Scarfs, 
 
 Gown Pieces, and Handkerchiefs 
 
 -' Taffaties, Damasks 
 
 and other Silks, in pieces 
 
 Sugar, unrefined 
 
 Tea 
 
 Tin 
 
 Tortoiseshell, rough 
 
 Turmeric 
 
 Other Articles . . . . 
 
 Total Value of Imports into Great Britain "j 
 from the East Indies, China, and Mauri- ( 
 tius, in the Year ending the 5th January, ( 
 1829 3 
 
 By the 
 
 EAST INDIA 
 
 COMPANY. 
 
 65 
 20,587 
 
 89,487 
 
 53,011 
 
 43,8ti5 
 910,389 
 
 44,018 
 
 6,812 
 
 131,582 
 
 3,646,800 
 
 ,576,905 
 
 Free Trade 
 
 including the 
 
 Privilege 
 
 Trade. 
 
 £ 
 
 315 
 
 683 
 
 28,007 
 
 20,674 
 
 24,614 
 
 118,119 
 
 46,759 
 
 153,366 
 
 585,774 
 
 9,670 
 
 92,083 
 
 58,945 
 
 5,411 
 
 16,398 
 
 5,231 
 
 6,067 
 
 7,221 
 
 3,060 
 
 94,765 
 
 17,528 
 
 13,473 
 
 2,194,702 
 
 7,373 
 
 7,738 
 
 10,897 
 
 7,562 
 
 5,522 
 
 80,376 
 
 1M83 
 
 105,215 
 
 5,213 
 
 8,388 
 
 5,308 
 
 196,821 
 
 368,279 
 
 107,779 
 
 842 
 
 13,041 
 
 14,896 
 
 718,787 
 
 206,567 
 
 6,866 
 
 57,143 
 
 11,406 
 
 181,107 
 
 0,643,671 
 
 Inspector General's Office, Custom 
 House, London, 25th of April, 1829. 
 
 WILLIAM IRVING, 
 
 Inspector General of Imports and Exports. 
 
APPENDIX. - 
 
 75 
 
 Total Value of Imports into, and Exports from the Port 
 of Canton by the United States. 
 
 At4s. 4(f. per 
 
 
 
 
 EXPORTS 
 
 Dollar. 
 
 IMPORTS INTO CHINA. 
 
 FROM CHINA. 
 
 Years 
 
 Sale Value of 
 
 Number of 
 
 
 
 
 Merchandize. 
 
 Dollars. 
 
 Total Value. 
 
 Total Value. 
 
 
 Dollars. 
 
 Dollars. 
 
 Dollars. 
 
 Dollars. 
 
 1815-16 
 
 605,500 
 
 1,922,000 
 
 2,527,500 
 
 4,220,000 
 
 1816-17 
 
 1,064,600 
 
 4,545,000 
 
 5,609,600 
 
 6,703,000 
 
 1817-18 
 
 1,475,828 
 
 5,601,000 
 
 7,076,828 
 
 6,777,000 
 
 1818-19 
 
 2,603,151 
 
 7,414,000 
 
 10,017,151 
 
 9,041,755 
 
 1819-20 
 
 1,861,961 
 
 6,297,000 
 
 8,158,961 
 
 8,182,015 
 
 1820-21 
 
 Value 
 
 not stated 
 
 this 
 
 year. 
 
 1821-22 
 
 3,074,741 
 
 5,125,000 
 
 8,199,741 
 
 7,058,74J 
 
 1822-23 
 
 2,046,558 
 
 6,292,840 
 
 8,339,398 
 
 7,523,492 
 
 1823-24 
 
 2,217,126 
 
 4,096,000 
 
 6,313,126 
 
 5,677,149 
 
 1824-25 
 
 2,437,545 
 
 6,524,500 
 
 8,962,045 
 
 8,501,121 
 
 1825-26 
 
 2,050,831 
 
 5,705,200 
 
 7,756,031 
 
 8,752,562 
 
 1826-27 
 
 2,002,549 
 
 1,841,168 
 
 3,843,717 
 
 4,363,788 
 
 Number of Vessels belonging to the United States which 
 have cleared out from their Ports for Ports beyond the 
 Cape of Good Hope. 
 
 Years. 
 
 Numbers. 
 
 Tons. 
 
 1814 
 
 5 
 
 1,995 
 
 1815 
 
 73 
 
 23,650 
 
 1816 
 
 106 
 
 35,253 
 
 1817 
 
 122 
 
 39,169 
 
 1818 
 
 118 
 
 36,586 
 
 1819 
 
 76 
 
 23,249 
 
 1820 
 
 85 
 
 25,098 
 
 1821 
 
 86 
 
 25,905 
 
 1822 
 
 73 
 
 23,714 
 
 1823 
 
 80 
 
 24,459 
 
 1824 
 
 66 
 
 20,724 
 
 1825 
 
 87 
 
 27,322 
 
 1826 
 
 67 
 
 19,070 
 
 1827 
 
 55 
 
 17,078 
 
 1828 
 
 46 
 
 14,112 
 
 THE END. 
 
LONDON : 
 
 &1ARCHANT, PRINTER, INGRAM-COllRT, FENCHURCH-STREET. 
 
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