-M.
 
 esrc- 
 
 THE LIBRARY 
 
 OF 
 
 THE UNIVERSITY 
 OF CALIFORNIA 
 
 LOS ANGELES
 
 SUBSTANCE 
 
 OF A 
 
 S P E E C 
 
 DELIVERED BY 
 
 Mr. HENCHM4N, 
 
 AT THE 
 
 GENERAL COURT 
 
 OF THE 
 
 EAT INDIA COMPANY, 
 
 HELD ON 
 
 The ad NOVEMBER, 1796, 
 To take into confederation the following queftion ; 
 
 ." That an application be made to Parliament, for leave to encreafe farther the 
 Capital Stock of the Company, Two Millions, at fuch times and at fuch 
 rates as the Courtof Directors may fee proper, with the confent of the Lords of 
 hisMajefty's Treafiiry; and that the Power veiled in the Company to iflue 
 bonds fliall he reduced, as the Capital Stock fliall be increafed, that is to fay 
 if the Company fliall have occafion to add One Million of Capital to their ftock, 
 the power of iffuing Bonds on the part of the Company fliall be reduced from 
 Three Millions to Two Millions, and fo on in proportion." 
 
 PRINTED FOR T. CHAPMAN, FLEET-STREET. 
 1796.
 
 IPS 
 
 SUBSTANCE 
 
 OF A 
 
 SPEECH, &c. 
 
 IVlR. HENCHMAN rofe, and began by declaring that he 
 rooft readily admitted the general profperity of the Eaft India 
 Company, as it appeared from the account of quick ftock per 
 computation now before the Court ; it muft be a great fatis- 
 faaion to every proprietor to kaow that within thefe ten 
 years the fituation of the Company was fo much improved, 
 that the balance againft them at prefent was little more ihau 
 one million i whereas at the former period it amounted to 
 upwards of feven millions ; the debts of the Company abroad 
 had alfo been confiderably reduced in the fame priod : peace 
 then reigned throughout all the Britilh poflellions in India } 
 fo that the fituation of affairs generally was bartering, and 
 upon every occafion of late the Company's trejfury at home 
 had been reprefented and confidered to be killer than ufual f 
 that he confefled this call upon the proprietory for an ad- 
 ditional capital of two millions of ftock came upon hinr, fo 
 unexpeaedly, fo entirely unlocked for, that he couid not 
 avoid viewing it with uncommon furprife and aitoniftmen;. 
 'He had refleaed upon the cafe, (and for the opportuity he 
 t hanked the chairs who fo readily acquiefced in the con- 
 fideration of the fubjea being adjourned to this day) he ha d 
 
 attentively
 
 r 2 ) 
 
 attentively perufed the eftimates, and upon the maturcft con- 
 fideration, he faid, he could not fee caufe fuflicient to agree 
 in the prefent important propofition ; his reafons as they had 
 occurred tohim, he would take the liberty of (ubmitting tothe 
 Court. He had on moft occafions of late had the pleafure to 
 agree with the chairmen, whom he believed to be men that 
 a&ed on the moft honourable principles ; he was extremely 
 forry he differed from them at prefcnt, but that being the 
 cafe, as it had always been his rule and practice in that Court 
 to deliver his opinion without referve, and without perfonal 
 confiderations, he would do the iame that day ; and he was 
 fatisfied that he (hould not give offence to any liberal 
 mind, as long as he conducted himfelr", (which he hoped he 
 always fhould do), with the manners of a gentleman ; and 
 whilft he obferved a proper refpeft, wherever refpeft might 
 be due* Mr." Henchman faid he could not after a review o 
 the accounts, confider the ft ate of the Company at home fo 
 low, and their credit fo defperate as to make fo extraor- 
 dinary a ftep as the prefent indifpenfably neceffary. Gentle- 
 men mult recoiled what the fituation of the company was 
 ;U the clofe of the American war; how deeply they were; 
 indebted both at home a.nd abroad ; and jet no fuch remedy 
 as this was ever brought forward : and no wonder, for the 
 Arguments in his mind againft it were fo firongjtbat nothing 
 but the laft neceffity, nothing fhort of every other mean* 
 being inefficient or improper, could reconcile him to a mea- 
 fure that would injure the pub^ick, would injure the Com- 
 pany, and would injure every individual proprietor in his pro- 
 perty; however differently Come gentlemen might make their 
 calculations, upon the idea that they would have the fcrip j 
 and of courfe as upon moft loans, that they would put apiq- 
 iit of four or five per cent, immediately into their pockets. 
 Here was the danger ; gentlemen he hoped would be cau- 
 tious j h was a/raid Loo many would look ao further than to 
 
 this>
 
 ( 3 * 
 
 this, and if fo the queftion might find too eafy a paflage 
 through that Court; but as it was in many points of view of 
 the higheft importance, he trufted it would undergo a fair> 
 candid, and thorough inveftigation. 
 
 Mr. Henchman faid in confidering the fubjeft, he fhould 
 divide it into two parts. 
 
 ift. He fhould confider, whether it was good pblicy in 
 the Eaft India Company to go before Parliament for fuch a 
 purpofe, and if fo, whether the prefent was a proper time. 
 
 adly. Whether the neceffity of increafing the capital was 
 inevitable, or whether other means could not be found to re- 
 move theprefemdiftrefs of the Eaft India Company. 
 
 On the firft point, Mr. Henchman faid, he knew the Pro- 
 prietors would agree with him, and he had often heard it from, 
 behind the bar, that it was bad policy in the India Company 
 at any time to put themfelves before Parliament ; that the 
 Company always came out of Parliament, worfe than they 
 went in; there was always fome advantage taken of their 
 diftrefs. They might get temporary relief, it was true, but 
 it was with fuch fevere and expenfive conditions, either in 
 purfe or privelege, that it was, he might almoft fay, the ge- 
 neral voice of the Proprietors and Directors never to apply 
 to Parliament, if it was within poffibility to do without it.-> 
 Was the Company reduced to that neceffity at prefent? Mr. 
 Henchman faid he could not perfuade himfelf that they were. 
 Bur, faid he, what reafon can the India Company have to flat- 
 ter themfelves, that they will be confidered with more favor 
 and forbearance by the legislature at prefenC than upon for- 
 mer occafions ? there can be none. And if the Company 
 is frt rich, as has been reprefentcd, and this additional Capi- 
 tal is to be the means of bringing that circulating wealth 
 
 z into
 
 ( 4 ) 
 
 into the Company's treafury, will not his Majefty's miniftef s 
 after being repeatedly difappointed of the promifed 500,000!. 
 
 . / per anh. fall upon fome means or other, when the oppor- 
 tunity is fo fairly offered, to bring that money with more 
 certainty and more regularity into the Exchequer in future. 
 Is it good policy to furrender the Charter fo lately obtained 
 
 V as I793> to fuch alterations as the neceffities of minifters 
 may fuggeft ? may it not be faid with fome plaufibility, that 
 if the Company has all thefe riches, means ought to be taken 
 to apply a portion of them to the neceffities of the pub- 
 lick, as early as poflible ? That if the Company comes to afk 
 a further favor, the publick have a juft right to a further 
 confideration for granting that favor. 
 
 Mr. Henchman faid, he forefaw the danger of the moft 
 valuable parts of Compact of 1793 being entirely fetafide; 
 that the Guarantee fund and the feparate fund, might both 
 be attacked; and that the Company would again be as 
 much at the mercy of Parliament as if their Charter was 
 
 expired. Could it be expelled, that government would 
 
 ./ allow the Guarantee fund to extend to fixteen million, in- 
 ftead of twelve ; before the publick came into thofe advan- 
 tages which the prefent agreement held out to them, as foon 
 as the fmaller fum was realized ? It was, Mr. Henchman 
 faid, very problematical whether even twelve million Gua- 
 rantee would ever be realized, but fome part no doubt might 
 be, unlefs very unforefeen impediments occured ; what then 
 is this Court about to do ? Neither more nor lefs then to 
 give a plaufible occafion for government to infift upon a 
 pofitive advantage for the publick ; whilft there is only a 
 portability of benefit to the Company by the extenfion of the 
 amount of the Guarantee ; and this at the particular expence 
 of the prefent Proprietors, becaufe in this arangement the 
 holders of the two million new flock, muft be put on an equal 
 
 footing
 
 (-5 5 
 
 Tooting with them ; and whatever the Guarantee fund raay 
 amount to muft be divided among the holders of eight mil- 
 lion inftead of fix. The feparate fund alfo would be made 
 fubject to the payment of one half per cent. -per ann. dividend^ 
 to the new Proprietors, by which means the dividend 
 on India ftoclc would be the fooner reduced again to ten 
 per cent, inftead of ten one half, as it is at prefent. Let 
 it be fhewn, if it can, how the Proprietors are to be- * 
 nefit by this extenfion of their capital ; do they expert 
 their dividends to be fuither augmented by the addi- 
 tional trade they are to carry on? if it is with China, it may 
 yield fome advantage ; but after all that has been, or can be 
 faid, Mr. Henchman declared, he was able to prove, when- 
 ever required, that the trade with India was not capable of 
 producing any profit at all*. If four capitals are required, 
 the intereft on that account, and the charges Merchandife in 
 India, which are not included in the invoices, more than 
 counterbalence any profit that may be imagined by eftimate. 
 Mr. Henchman next aflced, if it was good policy to open to 
 
 difcuflion. 
 
 At the general Court the a6th Oct. 1796, the Chairman in giving an 
 account of the profits of the Company's trade faid, The Bengal inveftment 
 * in the years 1794 and 1795 exceeded in coil the average of the former feven. 
 " years and yeilded thirty feven one half per tent, on the invoices being eightone 
 * half per cent, more profit than produced in the former feven. When he fjioke 
 " of per ctntfge, he muft obfeve that it was on the old valuation of Indian 
 " coins which are overrated in that valuation about twelve per (tnt. of courfe 
 < the per centage in the ftatement which he now give them was twelve/*/- 
 " ctitt lefs than it fliould be. 
 
 ' In 1793 the profit on Teawaj . 469*763 
 
 " 1794 6*5,054 
 
 " *795 - 833,421 
 
 " On the general "mveftments from India and China the profit hid beea 
 
 ' In 1793 59 8 >77 
 
 " '794 94*>97 6 
 
 *' 
 
 In order to examine this ftatement of Mr. Scott's and to fee wi^h preciGon the 
 pwfic on the ladian umfanents, if any, it is firft ^ecelTafy to deduct the profirs
 
 J 
 
 ( ,6 ) 
 
 difcuffion, and alteration the arrangement which had been 
 fettled for the participation account with government? By 
 the prefent a& of 1793, the Company can export to any 
 amount, and the participation account is annually charged 
 with the whole. Will not his Majefty's Minifters fay, this 
 muft be corrected, it is almoft impoflible the Public {hould 
 ever participate, if the Directors are at liberty to invert every 
 additional 100,060!. they rind coming into their treafury in 
 Bullion or Manufactures, and immediately export it to China 
 and India. They will fay, this muft be remedied, the partici- 
 pation account muft in future ftate the exports at a fixed fum, 
 one million or 1,200,000!. not but what the Company may 
 export to as great an extent as they think proper beyond it, 
 
 on Tea from the general profits as above, and the profits on Indian invefhnents 
 will then ftand as fo lows : 
 
 10 1793 ' 9 S >94* I m8d5Bra profit of to 
 
 1794 - 3*3.9" ( 3 yean is 209,1031. 
 
 * 7 9S 2,c6;54 5 J 
 
 In which years the amount cf the Invoices from India were as follows : 
 In i79 2 -3 Cur.Rup. i59,3,2oo . 1,593,020 
 
 1793-4 59> 2 9>549 i59*954 
 
 1794*5 1,97,97,006 1,979,700 
 
 It is fur.her prorer to remark here that the Commercial changes in India not 
 added to the Invoices, but which ought to be, to determine the profits, were ftateJ 
 in the printed documents as follows : 
 
 In 1793 Cur. R^f. 13,53,000 or . 135,300 
 
 1794 I, ,85,210 148521 
 
 1795 9>*M74 i9 8 .4'7 
 
 It may be faid that the goods fold in any one year in Europe are not the goods 
 fpecified in the invoices of any one year, but part of the invoices of one ye..r anc part 
 another j but it mud be allowed on an average the Company fell annually as much 
 as the invoices from Ind : a amount to, if fo, 1,590,000!. is what we have to take 
 s the i. voice amount f govi s fold in the year and 209,800!. li the profit, a, 
 abve, but it" we deduct the charges merchandize in India as ftated, that is 1 50.000!. 
 (to avoid fractions) there remains 59,800!. profit on a year's Indian inveftment of 
 i,59o,ool. and this trifle is without any allowance for intereft of money. Let 
 this ftatemcnt fp>ak for itfslf. It confirms the aHertbn, that there is no profit 
 on India Lvedwejits* 
 
 but
 
 ( 7 ) 
 
 but not to operate as it does now, to the exclufion of the Pub-' 
 lie from their (hare of advantage from the Eaft India poflef- 
 fions. Gentlemen mull admit, there is equity in the argu- 
 ment, and no doubt it will be made ufe of, whenever an op- 
 portunity is given to alter the terms of the prefent agreement. 
 Mr. Henchman next afked, whether it would be good policy 
 in the prefent proprietors to afk for the increafe of capital 
 for the paltry confuieration on the fcrip ? for that was the 
 lure; when an infallible confequence muft be, that fo much 
 moreftock coming into the market wcuid reduce the price of 
 flock generally more than the whole of that Btmus. Did 
 gentlemen confider the impolicy of borrowing fo large a fumon. 
 a temporary emergency in a manner that made it a perpetual 
 charge upon the Company as lang as the charter exifted ? At 
 what rate was it to be fubfcribed; not more than 170!. per 
 joo ftock ; and this to be guaranteed at aOQ; fo that the 
 firft operation fadJled the Company with an expence of 
 600,000!. but this Mr. Henchman faid, was the 
 leaft part of the charge. The intereft to be paid annu,-, 
 aJJy for the money at this rate was not lefs than 
 61. s. 6d. per cent, whereas bole's had uniformly circulated 
 during peace at 4 per cent, per annum, and always been much 
 in demand; the difference was 2!. 35. 6. per cent, and upon 
 the fum of 3,400,000^. amounted to 73,950!. per annnnt 
 this taken to the ed of the Charter, (18 years) would make 
 an expeuce of 1,331,100!. fo that the pofitive lofs of raifing 
 two millions of itock at this time would ultimately be very 
 near two millions of money. Or, it may be imagined* fince 
 there is fo much wealth belonging to the Company fome- 
 wher. or other, th'at in more aufpicious times, the Company 
 may be enabled to do withuot this additional ftock; if fo, 
 (and- Mr. Henchman (aid, he fincercly thought they might), 
 as the annual dividends upon it would be 220.OOol. every 
 man could calculate how much the Company would lofe in 
 
 the
 
 the courfe of ten, fifteen, or eighteen years. Mr. Hench- 
 man faid, the propofttion appeared to him highly impolitic, 
 on account of the extravagant expence attending it, as well 
 as the dangers to which it would expofe the prefent valuable 
 privileges of the Company. Mr. Henchman in the next 
 place urged very ftrenuoufly the unfuitablenefs of the times. 
 The proprietors had heard much of the inconvenience of war 
 freight?, that they weighed down the Company; was it then 
 Confident with the prudence of Merchants to extend their 
 commerce, whilft fuch an obftacie to advantage exifted ? or 
 was this the moft proper time to enter into more extenfive 
 mercantile fpeculations, when the nation was involved in a 
 war of the moft ferious nature ; and when it was allowed by 
 the Directors themfelves, that the merchants could not pay 
 regularly for what they bought at prefent ? if the prefent war 
 continued, Mr. Henchman faid, the opportunities of fale he 
 (hould think, would be ftill fewer; and if peace was obtain- 
 ed, it could not be expected that the Englifh would be allowed 
 to retain to themfel ves the whole trade of Afia. Would it 
 not be more confiftent with the characters of Merchants to 
 eftablifh a fyftem of ceconomy* and afcertain how the inte- 
 
 refls 
 
 * It is a little fingular that Mr. Henchman fliould have made die follow- 
 ing remark only the day preceding the call upon the Proprietors for an in. 
 creafe of capital. 
 
 Mr. Henchman faid, when will the Company eftablifli a fyftem of oecono- 
 my? It feemed to him abfolutely neceflfary, or what would avail their great 
 pofleflions. When a moft .iberal Aim had been granted, why go beyond it? 
 (referring to the grant to the Captains of Ships) Mr Hencnman, faid gentle- 
 men might be more inclined to attend to him if he fliould fliew, and that he 
 found necefTary to do, that imnoenfe fumshad been granted within thefe three 
 years by the Courts cf Dir.&ors and Proprietors; a very large additional bur- 
 then had been brought on the Company : he did not mean to fay that thefe 
 grants have bien lavifh or unneceflary, they might be quite othsrwife, he 
 Relieved they were; but the charge wai immenfe, it was rot lefs than two 
 Biii ions ftcrhng (here many cried out, no, no}. R'r. Henchman faid, he did 
 
 not
 
 ( 9 ) 
 
 refts of the French and Dutch were to be adjufted at a gene* 
 ral peace than to involve the Company in a more extenfive 
 
 not fpeak jightly, he^was not given to advance any thing which he was not pre- 
 prtpared with materials to fupport. He would particularize thefe fums. (Tfy, 
 #, Jfealc only prrsralfy was faid by feveral Prcpriotors) then Mr. Henchman 
 faid his prem fes were admitted, two millions had been very recency voted away 
 (.Nil, no, was again repeated) Mr. Henchman then faid, he muft if contradicted 
 go into the particulars. (A Proprietor faid, it d'd not relate to the queft'ion, 
 and defired Mr. Henchman to keep to the queftion,) Mr. Henchman faid, it 
 did relate to the queftion to mew that occonomy was neceflary, and -as it wat 
 denied to be the faft by feveral, both before and behind the bar, and the parti- 
 culars were no fecret, he muft beg to enumerate them ; every man might be 
 aware of them, but no man had yet taken the Double of putting them together ; 
 they were all additional expences to the ufual eftablifhments of the Company. 
 
 In the firft place he mould notice the Imbafly to China, which he 
 
 ' much underated at - .7 5,00* 
 
 > X-ord Cornwallis'spenfion 5000!. per ann. ioo,oo 
 
 Mr. Haftingi's ditto. 4000!. forjS years - 112,000 
 
 Ditto Xaw expences - 30,000 
 
 3000 Seamen for his Majefty's ferrce 65,009 
 
 Volunteer regiments - 70,000 
 
 Sundry other penfions, at leaft 2000!. per ann. 44,000 
 
 New buildings, India Houfe and wareb.ou.fes 150,00* 
 * Military arrangement in India taken at ioo,oooL per ann. 
 
 for 12 years is i,Zoo,coo 
 Andlaftly, the propofed remuneration to the Captains of 
 
 "fliips ... 348,00* 
 
 Making - .2, 124,000 
 
 Mr. Hanchman intreateJ of the Court to attend to his ftateaient, faying that 
 the day of oeconomy muft come ; hs trufted tlierefore that his propofiton 
 would meet with fupport j the Court was engaged in an acl of liberality, but the 
 liberality even of the India Company muft have bounds. 
 
 t 
 
 * Mr. Henchman was wrong in this point, it is faid to be 400,000!. per ann. 
 and if fo, mould be calculated for the time of the Charter that is 18 years, 
 and makes an expence of 7,200,0*0' but tills arrangement was never before] 
 be General Court, which accounts for his not having it correct. 
 
 C
 
 fyftem of Commerce immediaely ? a part of which the natfon 
 may very fhortly he obliged again to relinquifh. Indeed 
 (said Mr. H.) it is impoflible this Company can engross the 
 whole commerce of India, without continual and very serious 
 disputes with most of the other nations of Europe. Bur, faid 
 Mr. H. can this be a proper time to call on the Proprietors for 
 fo large a fum of money as 3 million and a half when the Go- 
 vernment is fo much diftrefled to find refources for carrying on 
 the War. Look at the state of the funds, and of Navy and 
 JExchequer Bills, .'confider the distreffes of the Mercantile 
 world ! Can any man say that when the public at large require 
 y the aid of every (hilling that can be brought into circulation 
 the Eaft India Company do well in apprdpriating fo large a fum 
 to their own ufcs j and thofe not ufes dependant upon the pre- 
 lent fcale of their commerce, but with a declaration of intend- 
 ing frill further to extend that commerce. A time of War, 
 Mr. H. observed, was never yet thought a proper time for in- 
 crenHng the company's capital, altho their diftrefTes had been 
 much greater than . at prefent other means of afliftance had 
 been found, and he trufted they would yet be found again. In 
 case of Peace it had been admitted that this additional flock 
 would not be wanted, increafing fales and decreafing expen- 
 ces in all probability would make good the deficiency; in freight 
 
 /only the Company will fave one Million per annum \ is the 
 hour of temporary diflrefs the proper time to make a perma- 
 nent addition to the capital ? certainly not. Mr. H. faid, he 
 yet hoped thefe arguments might have fome effeft ; efpecially 
 if he could fhew, which he fliould in the 2d place now at- 
 tempt to do, that the neceflity was not inevitable, but that 
 other means of relief might be found. He faid in coming 
 forward with this opinion he knew he flood in opposition 
 to the unanimous vote of the Court of Directors, but he 
 thought it more manly 19 acknowledge that difference, and 
 give his reafons for it, than to fit filent, and by that fi- 
 Jcn.ce have it imagined that he agreed with them, when in
 
 ( II ) 
 
 and in truth he did no fuch thing. Mr. Henchman 
 thought no fuch imperious neceffity exifted ; the Company V 
 had in his opinion means fufficient in their own hands, no- 
 thing but a different arrangement was neceflary, and a refo- 
 lution to limit their trade at prefent to a fcale not quite 
 fo magnificent as the honourable Chairman would recom- 
 mend. This Court had known the Company in a flate 
 of bankruptcy during the American war, and yet other means 
 of relief were found, and adopted j and if they would now 
 only make ufe of their own credit, all thefe difficulties 
 would vanifh j if this money was wanted only for commer- 
 cial exigencies, and Mr. Henchman faid, he trufted to the 
 the Chairman's declaration it was fo, nothing appeared to !/ 
 him which could juftify raifing fo much flock, at the enor- 
 mous expence of near two million of money, for fuch a pur- 
 pofe ; it were better to forgo any expected benefit j that all 
 the trade of India and China together could promife. Look, * 
 faid Mr. Henchman to the modes of relief in former times * 
 are they totally unfuitable to the prefent day? govern- 
 ment had on a former occafion refpited duties from 100,000!. 
 
 to 
 
 The following reliefs were granted to the Company at the periods luble- 
 qtyntly dated. 
 
 J 3th George 3d. Exchequer Bills .1,400,000 
 
 aid George 3d, Payment poftponed due to the Govern* 
 
 mer -t 100,009 
 
 Duties poflponed - 396,000 
 
 23d George 3d. The above debts and more duties poftponed, 
 
 the latter amounting to . . a -, o oca 
 
 Company allowed tocncreafe their bond debt from one million and a half (6 
 
 two million. 
 
 Debt for cuftoms and other accounts entreated, and further pofcpOnsd. Tj* 
 yublic at the fame time lend the Company 300, cool. 
 24th Geooge 3d, all the above incumbrances poftponed to May 1784. 
 Fy another aft in the firne year, thedsbt.for Cuftoms increased to 913, occ] 
 
 and all d.bts whatfoever poftpuncd to January 1786. 
 
 *6:h George 3d the Company were empowered to feU their annuities and to 
 ia rcafe their fiock to four millions ftcrli.ng.
 
 ( 12 ) 
 
 to upwards of 900,000!. government had furniChed the 
 Company with exchequer bills, and had remitted fums 
 the Company was under engagement to pay them ; was all 
 or any part of this impoffible to be done again ? Bonds had 
 alfo circulated :o a large amount during the whole of the 
 American war, but now it is (aid they will circulate no longer, 
 although the difcount upon them is only fiteen Shillings. Mr. 
 Henchman faid this was impoffible ; they might, it was true, 
 be paid in at the fales, but that was only after they had been 
 in circulation fix months: and the Company might, if they 
 pleafed, make the tenor twelve months. Now the navy 
 and exchequer bills were about to be taken out of the market,, 
 the bonds would find eafier circulation, and if the difcount 
 was five pounds inftead of fifteen fliillings, what would be 
 the expence to the Company ? On two millions it would be 
 100,000!. per ann. -and that wiMiJd be at an end, as foon as 
 by the attainment of peace, the Company's fituation was 
 ameliorated. Gentlemen furely would give this their con- 
 federation, and it wa% he repeated, impoflible that the re- 
 fpEclabie KBerchants whom he faw around him, fliould con- 
 cur in opinion, that India bonds would not circulate becaufe 
 they were at the prefent trifling difcount. It muft aftonifh 
 every prudent man on the Royal Exchange, to hear that the 
 Eaft India Company had applied to parliament to relinquifh 
 ihe, power of ifluing bonds, becaufe they were at fifteen (hil- 
 lings difcount, and at the very fame time petitioned for 
 authority to raife ftock at thirty per cent difcount. Sir, faid 
 Mr. Henchman, this cannot be done upon any merchantile 
 calculation'whatever. Which is moft to the difcredit of the 
 Company ? one is infinitely fo, the other not at all. 
 
 Mr. Henchman faid," he would now proceed to examine 
 the eftimate of receipts and payments, as it had been fiib- 
 mitted to the Court, and he would take the liberty particu- 
 larly 
 
 * See Fftiinat?, p; ai.
 
 ( 13 ) 
 
 larly to point out under -each article, what alterations might 
 probably be effc&ed ; and which in his opinion, would fur- 
 nifli all the means the Company couW ftand in need of.* 
 The e&imate ftafed a deficiency of 1,028,000!. by tfee firft 
 of March next. The firft article he fhould notice m aid f 
 this deficiency was the Cujloms ; la-ft year they amounted to 
 only 81 i,oool. and the fales were 6,500,000!. whereas this 
 year the fales were only 6,380,000!. yet the duties were 
 rated at 1,110,000!. Mr. Henchman faid, he was aware 
 that the goods imported might differ, and thofe fubjeft to 
 the higheft duty might be imported this year in the largeft 
 quantities, and therefore the duties might 'be more in propor- 
 tion, but he thought the difference here ftated fo great, that 
 there was a probability of its turning out at leaft 150,000!. 
 in favour of the Company. 
 
 The Sales were alfo eftmtated at I20>o0ol. lefs than laft 
 year, at which he faid he was furprifed, afterfo much -had 
 been faid at different times toimprefs that Court with an idea 
 that they would continue to increafe. [ 
 
 freight and Demurrage was ftated at ttear two millions 
 of money, Mr. Henchman fuggefted, that a part of 
 this might furely be paid in bonds ; not in any degree to 
 the prejudice of the fhip owners ; "but upon a fair agree- 
 ment to make the'fe bonds equal with them to money, 
 by fucb a difcount as the times might require ; and moft 
 
 certainly 
 
 *Mr Headinian conceives that the atgwmcnt here urged will receive fome addi- 
 ^ioiul force, v.Len the Frqprletors are informed, that the eftimate of receipts jni 
 payments for the years 17.95-6, laid before parliament ftated a deficiency, or ba- 
 lance againft the Company of . . . -17 l $lt 
 
 Whereas upon the conclufion of the year, it appears by the ac- 
 count of aflual receipt and payments for the years 1795 6, 
 that there was a balance in favor of the Company of . 459>397 
 
 Making together a difference m favor of the Company of . 31,235
 
 ( 14 ) 
 
 certainly it was iu the power of the Dire&ors always to 
 ^ agree in future, that they fhould have an option of 
 paying a proportion of this expence in paper, allowing as 
 he had juft obferved the difcount of the day : a fourth, a 
 fifth, afixth part of this large dffburfement might always be 
 lo paid ; at prefent he would only reckon upon 250,000!. 
 
 Exports to the value of i ,200,000!. was the next article. 
 Mr. Henchman faid he was in the hearing of fome of the 
 moft refpe&able merchants of the City of London, and he 
 would take the liberty of afking them, whether they would 
 ^j not think they had made an excellent bargain, if they were 
 to be paid upon an engagement, feventy-five/w cent, in cafh 
 and twenty- five percent, in India bonds. If the tranfaclions 
 pf the royal exchange could be revealed to that Court, he was 
 convinced this was better payment than fell to the lot of 
 ninety-nine merchants in a hundred he would therefore ftate 
 the difference in this at 300,000!. 
 
 Bullion is next ftated to the value of 400*000!. to be ex- 
 ported to China, although fo late as the i8th of October in 
 a ftatement before the Houfe of Commons this was not cal- 
 culated upon. China inveftments had often been made with- 
 out this affiftance, and in times of diftrefs- at. home, it had 
 been fent from India; at other times, fupplies had been fur- 
 nifhed by individuals, and the Chinefe merchants had fre- 
 quently been known to give the Company credit if required; 
 befides which, if he was not much mifinformed, it would be 
 difficult for the Company at prefent to get fo much bullion: 
 and furely it would be impolitic to encourage fo large an ex- 
 port of what is wanted fo much at home. Mr. Henchman 
 feid, after ftating thefe circumftances, he might be allowed 
 to calculate under this head on 200,000!. 
 
 Charges
 
 Charges Merchandize. This article flood at the immenfe ' / 
 fum of 903,747!. Gentlemen might be ftariled at fuch an 
 cxpence. It was unparalleled, and it was but juft to fay, 
 that in this was included an advance to Mr. Haftings of v 
 92,000!. which might have been paid in bonds; and J54;OooK, \ 
 for buildings, which probaly might be fufpended without ; 
 much inconvenience. There was alfo 70,000!. to be paid ; 
 as commiflion to the China fupercargoes. Gentlemen now 
 at Canton, and who could not have immediate occafion for 
 the money; might not that be paid in bonds? And Mr, 
 Henchman faid, obferving the great inereafe within thefe few 
 years under this head, which in 1784 was 2oo,oool. in 179? 
 was 401,000!. and 1796-7, 903,000!. he trufted he might 
 be allowed to fuggeft the probability of fome other articles 
 being leflened or deferred to the value of 20,000!. fo that 
 altogether an accommodation might be here found of 
 150,000!. 
 
 Cujloms po/iponed. In former wars and times of diftrefs 
 with the Company, government had frequently adopted this 
 mode of giving relief. In the American war, when minifters 
 were as much diftrefled as at prefent, cuftoms had been poft- 
 poned at firft for 100,000! . and from time to time until the 
 amount was upwards of 900,000!. Under this head, Mr. H. 
 faid, he fliould ftate an accommodation of 250,000!. 
 
 Dutch Prize Goods. Gentlemen were aware, he con- 
 cluded, that as a matter of regulation this Company was 
 appointed by a& of parliament, to bring to fale all Eaft India 
 cargoes, captured or detained from the Dutch, and the V 
 amount ofthefales was to be difpofed of as the Crown or Par- 
 liament might determine. Mr. Henchman would not pre- 
 fume to judge whether the whole amount ought or ought not 
 to remain for the prefent with the Company ; but as it 
 
 amounted
 
 ( 16 ) 
 
 amounted to near 8oo,oool. 250,000!. might not be called 
 for immediately. 
 
 Captains of Jhips worn out. The amount of 90,000!. 
 ftated to be due to them was clearly a miftake, becaufe they 
 were to be paid in bonds at long and diftant periods. 
 
 Government for troops, I3c. This was ftated at 200,000! 
 whereas Mr. Henchman faid he had reafon to think that the 
 account muft be in an unfettled ftate, and the amount due 
 to government fo uncertain, that half of it at leaft would 
 not be authenticated by next March, if ever it was. 
 
 Mr. Henchman faid, he would juft enumerate thefe feveral 
 article?, to (hew their total amount, viz. 
 
 Cufloms may be lefs - 150,000 
 
 Sales if the fame as laft year {hould be more 120,000 
 
 Freight and demurrage may be paid in bonds 250,000 
 
 Exports one quarter may be paid in bonds 300,000 
 
 Bullion to China may be leflened - - 200,000 
 
 CHARGES MERCHANDIZE. 
 Buildings may be deferred - - 6o,coo 
 Supercargoesin China may be paid in 
 
 bonds - 70,000 
 
 Other expences leflbned or deferred 20,000 
 
 i 150.000 
 
 Cuftoms portponed, as in former wars - - 250,000 
 Dutch prize goods may be poftponed - - 250,000 
 Captains of {hips worn out, are not to be paid 
 
 in cafh .---.._ 90.000 
 Government for troops, &c. cannot be afcer- 
 
 tained and fettled this year - - - 100,000 
 
 Making a total of 1,860,000
 
 ( V -) 
 
 Mr. Henchman obfcrved that the candour of the Dire&ors 
 would allow Tome probability to this ftatement, fince they 
 themfelves had been fo much in eerror reflecting the receipts 
 and difburfements between this and next March, that in 
 the account which they laid before Parliament only a fort- 
 night fmce, (i8th Oa.*) tbe expefted receipts were ftated 
 to exceed the expected difburfements 118,848!. and by the 
 account upon which this Court was now to decide, in- 
 flead of that balance in favour of the Company, a balance 
 ;s made againft them of 1,028,000!. Mr. Henchman faid 
 to meet this unexpected deficiency, he had brought articles 
 of retrenchment, arrangement and accommodation to up- 
 wards of i,8oo,cooL fo that there was ample room for gen- 
 tlemen to ftrike off whatever they could object to ; befides 
 which it was proper to remark, thatamongft thefe particulars 
 there were bonds only to the amount of 620,000). whereas 
 the Directors had upwards of two millions now out of circu- 
 lation, which he again infifted might be made ufe of. Befides 
 which, he faid, he would venture to fuggeft, that fome ac- 
 commodation might be expected from the Bank of England. 
 It was he acknowledged, prefumption almoft in any man to 
 judge the conduct of that great and iifeful body : he knew at 
 the head of it, the moft worthy, intelligent, and refpeclable 
 characters of the city; he knew the.vaft benefits diffufed 
 throughout the nation by that eftabliOiment ; and he knew 
 how delicate a fabric fuch a fyftem of credit was ; he thought 
 great confidence indeed ought to be placed in the Directors 
 of fuch an inititution ; but he might at the fame time a(k, 
 whether under any circumftances the Eaft India Company, 
 which at this hour had 350,000!. balance of cafh upon 
 their account, and often had fix, fcven, 800,000, and fome- 
 
 * It was ex; lained by authority, that thofe accounts were only cop'es of ac- 
 counts tha; hid been laid before Jie ja'.e Parliament in Apri Jail.
 
 times pet haps a million of money in cafli at the bank, were 
 henceforward to be totally excluded from all accommodation 
 whatever. This bufmefs between the bank and the Eaft 
 India Company, was the fame as between every individual 
 in whofe hearing he was fpeaking and his private banker ; 
 and he made no doubt, although the Direflors had ftated the 
 whole amount due to jhe bank to be paid off, that further 
 accommodation would from time to time be given, as was 
 ufual between mercantile parties ftamJing in the relations to 
 each other, which, the bank and the Raft India Company in 
 this cafe did. 
 
 Mr. Henchman concluded, by faying that he had taken 
 the liberty of ftating his opinion very much at large, becaufe 
 he thought the proportion was likely to involve fome of the 
 moft valuable rights of the Eatt India Company ; and if 
 carried into effect, io be attended with ah expence to the in 
 that was very far indeed beyond any advantage they could 
 obtain from it. He did not intend to offer any amendment 
 himfelf, he was fatisfied time would juftify the opinion he 
 had given, and he fhould at prefent fay no more : he would 
 only repeat that the expence would be enormous, and that 
 the neceffity did not appear to him to be fo imperious as it 
 bad been reprefented ; but that there were means fafficient 
 within the power of the Directors, if they would but make 
 ufe of them. Mr. Henchman was therefore againft the pre- 
 fent queftion. and with fome alteration would rather agree 
 with the amendment. 
 
 Towards
 
 ( '9 ) 
 
 Towards the conclufion of the debate, Mr. iTenchmart 
 fpoke in reply as follows : Mt. Henchman begged he might be 
 allowed a few words in reply to an honourable proprietor on 
 the other fide the Court, who faid, if he underftood him 
 right, that bonds could and did return upon the Company in 
 payment for goods as foon as they were iflued. The hon- 
 ourable Proprietor perhaps did nut reoollc-6l that by the prefent 
 tenor of them, they could not be offered in payment in lefs than 
 fix months : and there was no law that prevented the Court 
 of Directors from altering the terms of their bonds in any 
 mannerthey found more convenient, fo as to make the 
 accommodation to the Company for any term they pleafed. 
 
 Mr. Menchman next adverted to what had fallen from his 
 honourable friend (Alderman Lulhington). Surely he did 
 not mean to infift, that becaufe the Company would again 
 difburfs the money which might be fubfcribed for the ftock, 
 therefore it was a benefit to circulation, and a convenience 
 to the pubiick inftead of any embairafment. If this was 
 juft reafoning, he confefTed it was new to him* The more 
 the Calls which were made upon any capital, whether great 
 or fmall, the lefs in his opinion, would be the accommoda- 
 tion to all parties. It might as well be faid, that from every 
 additional loan the minifter brought forward, the pubiick 
 muft fincf greater circulation; and if fo, whence arofe trie 
 prefent diftrefs of all defcriptions of men, both pubiick and 
 private? Mr. Henchman faid, he was fatisfied this call 
 upon the Eaft India Proprietors would make it more difficult 
 for the minifter to find money for pubiick purpofes, it would 
 accommodate him in no way, unlcfs he was to have a {hare 
 in it, and that they were folemnly adored he was not. 
 
 Mr. Henchman faid before he fat down, he would juft no- 
 tice what had fallen from an honourable Proprietor near him 
 
 fMr.
 
 ( 20 ; 
 
 (Mr. Smith) he had faid much very deferring of attention, 
 but what he particularly wifhed to notice was refpecting the 
 application of this new ftoclc to the payment of the Com- 
 /pany's debts. The aft of 1793 expresfly fettled a regular 
 V progreffive mode of liquidating thefe debts at the rate of 
 500,000!. per ann. and after paying fo much annually, go- 
 vernment came in for* their participation ; whereas, if the 
 Company extended their capital two millions, or 3,400,000!. 
 in money, it muft follow of courfe (if not immediately, at 
 leaft as foon as peace return) that a great part of that 
 amount would be applied to the liquidation of debts either at 
 home or abroad ; and the Company's debt would thereby be 
 cxtinguifhed fomuch the earlier, by which government would 
 the fooner fucceed to the benefit intended them. Or if this 
 was not fufficient for fuch purpofe, how much more eafy 
 would it be to come again, when a peace may have improved 
 the flocks, and have a farther encreafeof capital, fo that the 
 Company's debt fhould be extinguifhed as far as would fatisfy 
 the law ; when in truth the only difference \vcu!d be, that 
 it had changed hands j the Proprietors having taken it upon 
 themfelves, by converting it into ftoclc. If the bill fhould 
 be brought in, he trufted a cJaufe would remedy this obv 
 jedlion. 
 
 F I N I jS.
 
 * Corrected eftimate of receipts and payments, from 
 the ift. of March 1796, to the ift of March lypyj 
 containing the aftual Receipts and Payments, from 
 the i ft. of March to the ift. of September 1796; 
 and continued by Eftimate to the ift. of March 
 
 Cafli Jn the Treafnry, 1st 
 March 1796, (Morning) 
 exclufive of Duty on Tea 459 397 
 Company's Goods fold, 
 
 Cuftoms - - 
 Freight and Demorage - 
 Goods ar'd Stores exported 
 Indian debt . 
 
 i no 3281 
 i 218 877 
 
 r 2 4 *r* 
 
 and to be fold - - 6 380 300 
 Honorable Board of rd- 
 nance, for Saltpetre de. 
 livered . - 60 coo 
 Private Trade, and Dutch 
 Goods fold - - - - i 508 488 
 Charges and Profit on pri- 
 
 Bills of Exchange, from 
 India and China - 
 Bonds granted to the regif- 
 lered Creditors of the 
 Raj ah of Tanjore 
 Bullion exported, and Cafh 
 advanced for India 
 
 5 39 
 74S 97* 
 
 43 S 1 ^ 
 458 186 
 
 vate Trade, and Dutch 
 Goods fold, teSep; 1796 154430 
 Cuftoms on ditto . - 61 956 
 Freight on ditto - z6 628 
 
 Purchafc of Tens, Sec. . 
 Charges on Merchandife, 
 including *upra Cargoes, 
 Commiflion, and Inter- 
 
 20 144 
 
 One Year's intereft, at 3 
 
 eft on Loans and Money 
 
 
 per cent per annum, on 
 i 207 559: 15, the 
 
 advanced t* Mr. Haftings 
 Alms Houfcs a: Poplar 
 
 933 747 
 
 Company's /hare ot the 
 
 L>ividends on Stock and 
 
 i 294 
 
 Annuities, transfered to 
 the Bank, agreeably to 
 Adi of Parliament - 36 226 
 
 Intereft on Ilond : - . 
 Bonds advertifed to bc'paid 
 off 
 
 707 677 
 
 Perfons returned from India 44700 
 Government, for Stores 
 and Supplies, tohisMa- 
 
 Frop-ietors of private Trade^ 
 Balances of Dutch Goods, 
 fold under the Al of 
 
 # SJ 
 
 jeftiy's Troops, &c. - 351 510 
 
 Money borrowed of the 
 p 
 
 34th George 3d Chap. 80 
 Puycrs of Tea returned 
 
 778 43 
 1 160 
 
 ai - - - 250 coo 
 Chinfurah caufe 59 307 
 
 Warrants pafled the Court 
 unpaid - .... 
 
 74 6ao 
 
 9 37 94 * 
 Balance agamft - j 028 275 
 
 Seamen for the ufe of Go- 
 vernment - . - - 
 Chinfurah Caufe - . 
 
 15 6c8 
 165 
 
 JQ 401 117 
 
 Captains, whofe Sh;ps will 
 be worn- out - - 
 
 90 ooo 
 
 
 Money boorowed, paid the 
 
 
 
 Bank - - . 
 
 150 coo 
 
 
 Government for Troops, 
 
 
 / 
 
 &Ct ' 
 
 20O OOO 
 
 
 10 401 zir
 
 15, 1796. 
 
 Continuatian 9 ftating the part taken by Mr. HENCFJ- 
 MAN in refpeft to the LOAN to Government. 
 
 Mr. Henchman^ finding that the part he has taken in fome 
 of the late General Courts of the Eaft-India Company has 
 been mifreprefented, and that the grants of money in ^ 
 aid of the public fervices have more engaged general atten- 
 tion than what the Company Have applied to parliament for 
 liberty to raife on their own account, thinks it incumbent on 
 him here to ftate the part which he really took in the debates 
 upon that important fubjer.. 
 
 Much converfation occurred, during the month of Novem- 
 ber, relative to the mode which his Majefty's minifters might 
 adopt for raifmg the fupplies for the enfuing year, and public 
 fubfcriptions were talked of, to which Mr. Henchman always 
 declared himfelf a friend. 
 
 On the 28th of November the Chancellor of the Excho- 
 querfent his general plan to the Directors of the Eaft- India 
 Company, but fuggefted that it might be more fujtable for / 
 the India Company to furniih two millions on different V 
 terms. 
 
 On the 2d of December the General Court met to difcufs 
 this queftion. The day preceding, the Directors had con- 
 fidered it among themfelves, and came to a Relolutioa " To 
 recommend to the General Court to lend two millions 
 fterling to Government, on the conditions propofed in the 
 plan of the Right Hon. the Chancellor of the Exchequer, 
 communicated to the public by the $ ;nk of England, for 
 raffing the iupplies fur the enfuing year.' 1 
 
 E
 
 Before the General Court met on the 2d inftant, the Direc- 
 tors held an early meeting, and came to a further refolution 
 of " recommending to the Proprietors to agree to pay the 
 intereft on the two millions into the Bank, for the ufe of the 
 public, during the term of the Company's charter." 
 
 Thefe Refolutions having been read by the clerk, fome time 
 was taken up in fettling a point of order relative to the quef- 
 tion which was adjourned from the 2fth of November, and 
 which refpe&ed the application to parliament for liberty to 
 increafe the Company's capital ftock two millions for their 
 own commercial purpofes, and in which was a claufe that 
 went to the eftablifhment of a Sinking Fund to redeem this 
 additional ftock; which claufe had been made part of 
 that queftion on the motion of Mr. Henchman *. 
 
 As the bufmefs before the General Court on this day (the 
 2d of December) confifted of both the increafe of capital for 
 the Company's ufe, and the grant of two millions fterling to 
 Government, the adjourned queftion of the 25th of Novem- 
 ber was by general confent withdrawn, that the whole fubjcdl 
 
 * Copy of the motion as amende-i ; 
 
 That this court approve the petition and bill now read for enabling the Com- 
 pany to increafe their capital ftock. But as it is the opinion of this court that 
 it will be highly conducive to the prefervation of the public credit of this Com- 
 pany, and to the fecurity of the prefent ftockbolders under it, that there fhould 
 be eftabli/hed a Jinking fnnd arifing from the annualfurp'.us of its revenues and 
 commercial profit^, in ord^r to repurchafe from t : me to t me certain proportions 
 of the propofed additional ca; ital of two millions ftock, in cafe the bill for 
 raifing the fame ftioufd pafs into a law. And as this court is further of opinion 
 that it will bs expedient to inveft the faid proportions of the faid furplus for that 
 purpofe, inperfons to be chofen by and out of the Eaft-India Company, upon 
 the principle of an aft palled in the 26^ year of his prefent Majefty (cap. 31.) 
 intit'.ed an act for in-effing certain fums in comrnifiioners at the end of every 
 quarter of a year, to be b/ *&iem applied to the reduction of the national debt. 
 That a claufe to this effect be iafcrted in the. bill beftrt .it be preferred to par-, 
 liamtat. 
 
 might
 
 ( 3 ) 
 
 might be at the free difpofal of this Court, which was very 
 numeroufly attended. 
 
 The Court firft came to a refolution approving of the pe- 
 tition to parliament, and of the bill for increafing the capital 
 which had been laid before them, with this alteration, that 
 the Company ftiould retain the power of ifluing bonds to the 
 extent of two millions. 
 
 Mr. Alderman Lujhington then took up the fubjeS of the 
 loan to Government ; and after much obfervation made the 
 following motion: " That this court do agree to lend to his 
 Majefty's minifters the fum of two millions fterling, to be 
 paid by inftalments of , free of all intereft, on 
 
 the following conditions : That the Company (hall be allowed 
 to augment their capital by fuch further additional ftock as 
 {hall be neceflary to make the propofed loan to Government, 
 provided that the whole capital ftock (hall not exceed nine 
 millions : And that the whole of the Company's ftock fo 
 augmented (hall be guaranteed at the value of 200 per cent* 
 by the territorial pofleflions of India, in addition to all other 
 fecurities heretofore eftablifhed by parliament, and that the 
 acceptance of fuch a guarantee {hull not be conftrued to the 
 prejudice of the Company's claim to the fole right of pof- 
 ieffing the faid territories in India." 
 
 Mr. Henchman contefted the arguments of Mr. Alderman 
 Lumington, and concluded by offering the following amend- 
 ment to the Alderman's motion ; after the introduaory words, 
 * Refolved that this Cturt concur in the Rejolutlon of the 
 Court of Direflors to lend two millions Jlcrling to Government 
 en the conditions propofed in the plan cf the Right Hon. the 
 Chancellor of the Exchequer, comrmmicated to the public by the 
 Z 2
 
 ( 4 ) 
 
 Bank of England^ for raifm* the fuppllcs fir the enjulng 
 year." 
 
 This amendment was adopted by the Court and paffed into 
 a Refclution. The majority of the Proprietors prefent think- 
 ing that they had done fufficient, or perhaps gone rather 
 beyond it, fince they had agreed to advance two millions, 
 whilft the Bank of England only advanced one; and with this 
 further and material difference, that the Bank was able to 
 make their advance without any call whatever upon their 
 Proprietors; whilft the Directors of the India Company 
 -confefled that they had no fuch means in their hands, but 
 muft make a call upon the Proprietors of India flock to in- 
 creafe their capital to the extent of the whole fum. 
 
 The Refolution which the Directors had come to in the 
 morning, recommending the -payment of the intereft, came 
 next under corfideration, and an inclination appeared in the 
 minds of many Proprietors in fome degree to come into this 
 meafuie. Mr. Henchman was one among others who fup- 
 ported the idea, obferving that he wifhed the Eaft-India 
 Company on all occafions to ftand foremoft in public fpirit, 
 and to fatisfy the nation that they were always ready to go 
 even beyond what commercial prudence might fuggeft in 
 fupport of his Majefty's government, and the conftitution of 
 the country. But to extend this Refolution for paying the 
 intcreft to the end of the charter was thought fo much beyond 
 the ability of the company, that many Proprietors obje^ed 
 'to it ; and after a long difcuffion it was propofed and carried 
 by a very decided majority, if not unanimoufly, that the 
 'Company ihould pay the intereft of the two millions, they 
 fubfcribedto the loan, into the Bank of England, during the 
 war, and for four years after the conclufion of a general 
 
 peace.
 
 ( 5 ) 
 
 peace. 'Many of thofe.moft fanguine and earneft to go the 
 greateft lengths in favour of government confeffed they were 
 well fatisfied with the bufmefs of this day. 
 
 It is here well deferving of remark, that the Proprietors 
 were told in the courfe of this debate, by one of the Direc- 
 tors, that the Refolution for paying the intercft on the two 
 millions to the end of the charter had met with much oppofi- 
 tion in the Court of Directors, and had at laft been carried 
 i>y ballot of only ten to eight. 
 
 On the morning of the yth of December, to the furprize 
 of many, the following Advertifement appeared from the 
 India Houfe in all the public papers : 
 
 Eaft-India Houfe, Dec. 6, 1796. 
 
 * { THE Court of Directors of the United Company of 
 Merchants of England, trading to the Eaft-Indies, do here- 
 by give notice, That a General Court of the faid Company 
 will be held at their houfe in Leadenhall-ftreet on Friday next, 
 the gth inftant, at n o'clock in the forenoon, for the pur- 
 pofe of taking into confider-ation the following unanimous 
 Refolution of the Court of Directors, viz. 
 
 * At a Court of Directors, the 6th of December, 1796. 
 
 " Refolved unanimouflj', That it be recommended to the 
 General Court to extend from four years after the definitive 
 treaty of peace, to the end of the charter, the payment of 
 intereft into the Bank on the two millions voted on loan to 
 Government on the ad inftant, or until fuch periods as the 
 principal may be repaid, the fame to be paid during -the pre- 
 fent war from the general fund j but at any future period, in 
 the poiHble event of the funds of the Company being at any 
 time unequal to the payment of fuch intereft after the .divi- 
 dends on the Company's ftock, and the other charges which 
 precede the participation of the public, then the intereft to 
 become a charge on Government, it being understood that 
 at the expiration of the Company's prefent charter the terri- 
 torial poffeffions in India (hall become a pledge and guarantee 
 
 to
 
 ( 6 ) 
 
 to- the Proprietors of Eaft-India ftock, to the extent of eight 
 million* of capital ftock, and at the rate of 200 per cent, and 
 -' ; ^ v/sthout prejudice to the Company's prefent claims 
 thereon. 
 
 " WILLIAM RAMSAY, Sec." 
 
 On Friday the gth of December* 
 
 As foon as the General Court was affembled, the Chair- 
 man ftated, that the Court had been called for the purpofe of 
 taking into confideration a Refolution of the Court of Direc- 
 tors, originating from a converfation which had been held by 
 the Deputy Chairman and himfelf with Mr. Pitt, on the fub- 
 jet of the Refolution of the laft General Court, and from a 
 letter written by that gentleman to the Dire&ors on the fub- 
 jeK That the Directors had been UNANIMOUS in this refo- 
 lution, from a conviction that the remiffion of the intereft 
 on the loan of two millions, to no longer a time than four 
 years after the war, would not be of efTential fervice, and 
 would not prevent permanent taxes being put on to the amount 
 of that intereft. 
 
 The Refolution as above was then read, and alfo a letter 
 from Mr. Pitt, dated 5th inftant, ftating, That he faw 
 with pleafure the Refolution which had been entered into by 
 the Proprietors for a fubfcription of two millions, and for 
 the repayment of the intereft on thisjoan to the Bank for a 
 certain period. That, however, confidering the peculiar 
 intereft that the Company had in the event of this war, as 
 well as their common intereft as fubjeds, he fubmitted to 
 them whether the Refolution they had entered into would be 
 competent to anfwer their own intentions in making it j that 
 the burthen of taxes would thereby only be fufpended for a 
 fhort period, and therefore muft now be permanently pro- 
 vided for." 
 
 The
 
 ( 7 ) 
 
 The Chairman obferved, that in providing by the prefent 
 Refolution for the Public making good any poffible deficiency, 
 he meant to throw no fufpicion upon the profperous ft ate of 
 the Company's concern?, but merely to provide for a poffible, 
 though highly imprc bable contingency, fuch for inftance as 
 India being loft to this country. The Company muft then 
 have recourfe to Government, rfe hoped the matter would 
 fuffer no delay by any objection to the want of legal form, as 
 there would be time enough before the Bill could pafs, for 14. 
 days notice to be given in conformity to the By-law. 
 
 Mr. Alderman Lujhlr.gton made fome objections to parti- 
 cular parts of the refolution ; but approved and fupported the 
 fubftance of it. Several other gentlemen fpoke for, as well as 
 againft, the queftion. After which 
 
 Mr. Henchman faid, in confequence of what had fallen 
 from the chair, he in the firft place beg'd to call the attention 
 of the Court to their own laws. He ' faid that much irregu- 
 larity had been fallen into at the laft Court by its not having 
 been afcertained whether the proceeding of that day was con- 
 fiftent with the By-laws of the Company. Mr. Henchman laid 
 hedidnotwifti an hour's delay, if the Court was proceeding 
 legally } and he trufted the Court would agree with him, that 
 it was incumbent on them to refpe<5t their own conftitution, 
 and to be fatisfied that they were proceeding in a manner 
 confident with it before they proceeded at all. 
 
 Mr. Henchman faid, he could not agree in the opinion given 
 at the laft Court by the learned counfel (Mr. Rons,) for he 
 thought theleitar, and more particularly the fpirit, of the By-law 
 required 14 days public notice to be given before any queftion 
 on a grant of money could be entertained or difcufled by the 
 
 Ge-
 
 a 3 
 
 General Court, and that the larger the grant, the more impe- 
 tive'the law fliould be confidered, But as the queftion of this 
 day differed in fome degree from that at the laft meeting 
 Mr. Henchman begged to put the following queftion to the 
 learned counfel. " Does he think that the letter, or the 
 fpirit of the By-law* requires 14. days notice to be given be- 
 fore the queftion now offered can be proceeded upon by the 
 General Court?" the harned counfel then gave his opinion 
 ** that he thought the Court might now proceed," and afligned 
 his reafons, but he acknowledged, be gave this opinion with 
 more doubt and hefuation then he had done before. 
 
 After a conversation which engaged the Court a confider- 
 able time, it was propofed by the honourable Chairman, that 
 the fubjecl might be difcufled with an underftanding that 
 it fliould be decided by a ballot, at the expiration of fourteen 
 days. By this means a deference was paid to the By-laws 
 of the company ; whether fufficient or not, every member 
 muft decide for himfelf ; it clearly eftabliflied a pre-cedent in 
 a certain degree favouiable to the abfent Proprietors. 
 
 This point being acceded to, Mr. Henchman proceeded 
 as follows : 
 
 He faid he fliould be exceedingly forry, that he was for a 
 moment confidered as a man that felt the leaft difmclination 
 to the Company giving the utmoft aid to government ; that 
 their circumftances would admit, or that their duty could re- 
 quire j but Mr. Henchman fad, he was much furprized, he 
 
 * The following is, copy of the By Law, t( That no motion fliall in future be 
 made in a General Court ; to make any grants of any fums of money, out of 
 the company's caih without notice being given in writing by the perfons propofing 
 the fame, and publi/hed by the Court of Dire&ors, at laaft. fourteen days pr- 
 vious-to the holding of fuch General Court." 
 
 confeflcd
 
 confefled to hear his honourable friend, Alderman Lufhington, 
 comeforward to fupport a Refolution to the purport of the pre- 
 fenr, when almoft every gentleman in Court might recolledt 
 that only three fliort years fmce, the honourable magiftrate, 
 had looked upon the conduct of the very fame minifters in the 
 adjuftment of the terms of the prefent charter as bearing ex- 
 tremely hard upon this company indeed ; had he not faid, / 
 that he faw no traces of candor or liberality in the minifter, / 
 for India with regard to that negociation, and that his con- * 
 duel with refpedl to the Company had been uncandid, unjuft 
 and oppreffive ? The honourable Alderman he well recollected 
 had then done jnftice to the private character of Mr. Dundas, 
 by admitting that he poflefled that opennefs and candor 
 which had been afcribed to him ; but with refpeft to the 
 India Company he had made a hard and oppreffive bargain, 
 by mere dint of power. Sir, faid Mr, Henchman, after ' 
 entertaining fuch an opinion of the terms of the prefent char- 
 ter, and after well knowing that the conditions of it in be- 
 half of government have never yet been fulfilled j for the 
 500,000!. had never been paid, but in the firft year, and that 
 was under a fpecial claufe of the ac\ and not becaufe the 
 Company had aflets to do it according to account, and bear- 
 ing in mind what was done here only laft week, he was 
 aftonifhed to hear the honourable alderman give his powerful 
 fupport to the prefent propofition, which went to make an ^ 
 additional free gift of 112,000!. per annum ; and which to the 
 conclufion of the charter would make a fum of one million 
 and four hundred thoufand pounds, over and above what had 
 been already voted. Mr. Henchman afked, where were the 
 means ? he thought it right and proper that the Proprietors 
 fhould underftand what in duty, they were bound to do ; and 
 he concluded they would go with him in admitting that they 
 did all which duty could require of them, if they came for- 
 ward in due proportion with the other great capitals of the 
 
 F nation
 
 ration. Had gentlemen refle&ed where their Situation wat 
 amongft thefe capitals ; poffibly he might fhew that it wa 
 , lower than many imagined, and that they had already far ex- 
 ceeded what could in any cafe be equitably required of then% 
 Mr. Henchman faid among thefe capitals, he had firft to ftate the 
 landed interest) producing an annual rent of thirty millions, 
 and at twenty years purchafe only, making a capital of fix-hun- 
 dred millions. 
 
 He fhould next ftate the perfonal property ; it was 
 by very good authority efrimated, that the moveable pro- 
 perty in 4 london only amounted to 170 million : if fo no one 
 would deny him, that the perfonal property of the kingdom, 
 exceeded the landed, yet he would ftate it only at the fame, 
 600 million and an Intereft an it of 5 per cent, (infteadofa 
 commercial profit) that is 30 million more. 
 
 Mr. H. next ftated the funded property 350 million and the 
 ir.tereft 12 million. 
 
 The next in confequence might be the Weft India 
 Capital; generally rated at more than 75 million and 
 poffibly might be 100 million, and the retjrn from it was well 
 afcertained to be upwards of 6 million of which 3 million was 
 clear to the proprietors, after dedu&n jail duties, charges and 
 expences whatever, which went to the Govemmnent, the Weft 
 India Merchant?, and others. 
 
 The next Capital was the Bank of England Ij,6co,COCj 
 and the intereft upwards of SoOjCOOl per annum* 
 
 There were others of great magnitude, but he believed 
 the Eaft India Company might ftand next, and their capi- 
 tal was well known to be only 6 million and their annual 
 dividends only 6oc,ocol : So that this great company from 
 which fo much was expected ftood very low indeed among the 
 argeft capitali of the nation. 
 
 Mr. H. faid he had enumerated capitals that amounted to 
 
 1667
 
 ( II ) 
 
 r66y millions, and that afforded an annual return of al. 
 
 moft So millions : 
 
 Among thefe the Eaft India Company ftood at the trifling 
 
 fum of 6 m llions, giving an intereft of only 6o,ocol : 
 
 Mr. Henchman faid- he muft confider that the taxes 
 already in force were laid with as much impartiality 
 as pofllble on the people at large, and therefore that the 
 whole nation fhould come forward upon the prefent oc- 
 cafion in juft and fair proportion according to their poffef- 
 fions and income ; if fo, where will the Eaft-India Proprie- 
 tors ftand ? if the minifter required an aid of 100 million 
 the due proportion of the India Company would not exceed 
 one million j yet, Sir, faid Mr. H, he was one among many 
 who had agreed to advance 2 million ; when the Minifter only 
 wanted 18 : and net content with doing that, fo much bey- 
 ond any juft proportion, the fame meeting had refoh-ed to 
 lend it without intereft during the war and for 4 years after : 
 thereby fetting an example of public fpirit, which had not yet 
 been followed by any one, and amounting to a free gift of up- 
 wardsof half a million more. Mr. Henchman faid, he contend" 
 ed, that the Eaft India Company had in this done the utmoft 
 t hey ought ; that they had not aflets to do fo much ; and were 
 obliged to increafe their Capital for the exprefs purpofe : which 
 he very much apprehended might tend to difcredh their ftock 
 in the market to an alarming degree. 
 
 Mr. Henchman faid after all this had been done, under 
 fuch circumftances of difficulty, another letter comes from c 
 the Chancellor of his Majefty's Exchequer, ftating tha 
 this is not fufficient; and the Court of Directors in confe- 
 quence of tbat letter recommend UNANIMOUSLY that this 
 Court fhall entail upon the Company to the end of their 
 charter, an annual expence of 112,000!,* Mr. Henchman fafd 
 
 * Daring the whole of the debate, not one Director attempted to prove that the 
 Company was or would be able to make this payment.
 
 ( 12 ) 
 
 he could not reconcile this to his mind, when at the laft 
 meeting only it was admitted, and the participation 1 account 
 prove it, that the Company was unable to fulfil their 
 prefent engagements with the public j and there was then alfo 
 a further account laid before them, under the fandion of the 
 Court of Directors, and authenticated by the officers of the 
 Houfe, proving, that they would not be able to pay any thing 
 to government beyond the 500,000!. in time of peace ; if 
 they were able to do fo much. Mr. Henchman faid he held 
 the account in his hand, it was an eflimate of receipts and 
 payments in one year of peace ; and although the produce of 
 fales was rated in it half a million higher than the prefent year, 
 (whilft fome gentlemen thought they would be lower); yet this 
 account /hewed that in a year of peace, the company will 
 have only a ballance of . 51 1,000, out of which -.500,000 
 will be due to government ; fo that there will remain only 
 . 11,000 in hand, and yet it was recommended to the 
 Court to pledge themfelves to a payment of . 112,000 per 
 annum in perpetuity. Mr. Henchman faid he refpe&ed what- 
 ever came from behind that bar, and he could wifli more parti- 
 cularly to be able to rely on the data that were from time to 
 time given in order to regulate theProprietors in the difpofal of 
 the Company's money, but it was a paradox that required ex- 
 planation, how the fame men could at one and the fame time 
 recommend to the Proprietors to pay . n 2,000, per annum, 
 and (hewn them by an official voucher that in their opinion 
 they would not have the means of difcharging the obligation. 
 
 Mr. Henchman faid he much wifhed to fubmit to the Cour^ 
 an obfervation or two on the letter of his majefty's minifter, 
 which had been read this morning. Mr. Pitt was pleafed to 
 expecl more from the Company, on two grounds, viz. the 
 peculiar Inter eft the Company had In tfre tffue of the war> and 
 their common intertjl as fubjetff. Mr. Henchman faid, he 
 
 conceived
 
 ( 13 ) 
 
 conceived, nay he knew, that many Proprietors had already 
 fhewn their zeal as fubje&s, and fubfcribed largely at the 
 Bank, in behalf of the common intereft they held ; and he 
 did not fee, how gentlemen were to be called on in a Court 
 of Eaft-India Proprietors, where their particular intereft, as 
 flock-holders was the object for their guidance, to come 
 forward, and manifeft zeal according to their common in- 
 tereft as fubjech; if fo, fome men might make a wonderful dif- 
 play of public fpirit at a very fmall rifque and expence indeed. 
 In refpect to the peculiar intereft the company had in 
 the iflue of the prefent war,J Mr. Henchman begged gen- 
 tlemen would a little attend to this, he did not think it had 
 fufficiently been reflected on by many. An honourable pro- 
 prietor near him, (Mr. Moore) had began to read a lift 
 of conquefts made in India, and he had checqued himfelf 
 before he came to the end of it, becaufe he poffibly thought it 
 too long to trouble the Court with. If thefe conftituted the pe- 
 culiar intereft which the Eaft India Company has in the iflue 
 of the war, Mr. Henchman faid he would try to explain that 
 intereft. He had read, he had heard, and he had witnefled 
 what had been the fituation of the India Company, in re- 
 fpecl to their conquefts in former wars ; every man knew 
 that fuch conquefts had been reftored by every fucceeding 
 treaty of peace, ad 'that in the American war, they 
 had been a confiderable make-weight in the fcale to ac- 
 complifli the pacification of 1783. It was very fit and proper 
 it fliould be fo, and this Company would not perform a very 
 eflential part of their duty towards the public, if they did 
 not exert themfelves to the utmoft in India, to diftrefs the 
 National enemies : but, Mr. Henchman faid, he contended 
 that thefe would not now, any more than they had formerly, 
 be of any folid advantage to the Company : and he could 
 
 wifh that there were laid upon the table j an account of the 
 
 expences
 
 cxpences Incurred by the Eaf^-India Company in India, du- 
 ring the prefent war, in troops and (hips, and ftores, and in 
 civil eftablifhments, for the reduction and for the mainte- 
 nance of the conquefts they had made from the French and 
 Dutch. It would exhibit a very long, but very creditable 
 account for this Company, in further proof of their loyalty 
 and public fpirit, for all the affiftance that had been given 
 by the nation in thefe inftances confifted only of a few fliips 
 of war. And what will be the event of all thefe conquefts ? 
 cc Every man was fatisfied injiis mind, that they would be num. 
 bered among the conceffions, that were to obtain peace: nay 
 perhaps at the very moment he was fpeaking ; Lord Malmf- 
 bury was in the aft of offering the furrender of them to the 
 Directory of Paris ; and then what benefit remained to the 
 India Company ? They will have the fatisfa&ion of knowing 
 that they have rendered a great National Service ; and they 
 will have a long bill to fettle with his Majefty's Government ; 
 which bJl will, like former bills of the fame nature, remain 
 unadjufted until the renewal of their charter 18 years hence* 
 aud then it wiil be fet off, as charges to a great amount were 
 in the year 1793, for the Manilla expedition, for mainte- 
 nance of French Prifoners in India, &c. &c. 
 
 Mr. Henchman faid he would venture to predict that the 
 Company would not benefit at all by the late conquefts ; 
 the utmoft that he could difcern was, that they might be 
 indulged with pofleflion of the Cape of Good Hope, if it 
 (hould be retained on the adjuftment of the terms of peace; 
 and the confequence of that would be, that the Company 
 would be burdened [inftead of benefited] with a further an- 
 nual charge of 4, or 500,000!. for he knew from very good 
 authority, that the^ Cape had coft the Dutch 200,000!. 
 per annum, of courfe it would coft the Englifh 400,000!. 
 
 4t the leaft. 
 
 Gentlerma
 
 ( 'S ) 
 
 Gentlemen fhould ferioufly confider that this Com- 
 pany had incurred a very heavy expence abroad in ad- 
 dition to what they have fo lately done at home ; and they 
 will then probably be of opinion, that they have done all that 
 their duty could require of them. 
 
 Mr. Henchman faid, he trufted he might be admitted to 
 make one remark more on the part of the minifter's letter 
 in which he fays, tofurnijb tht inter eft for fojhori a time, can- 
 not anfwer the purpoft prtbably intended, as the burden if only 
 for a certain time fufpended, but mujl be permanently provided 
 for. If nothing but a 'permanency of U2,OOol. per annum, 
 will fuit the minifter, this company have it not in their \t 
 power ; their charter is only for a limited time (18 years) 
 therefore this grant mutt be limitted, whether for 4 years 
 after a peace, or longer : but furely it is a confiderable ac- 
 commodation to the public, that for fome years to come [fay, 
 4, 5, or 6 ;] the nation need not be taxed for the intereft 
 of two millions capital. 
 
 Mr. Henchman next faid, he had a remark to offer, en 
 the terms of the prefent Refolution j it ftated that during the 
 prefentwar the inter ejl jhould be paid from the general funds of 
 tfthe Company, that was, if he underftood it rfght, that it 
 fhould be paid whether the Company were equal to the pay- 
 ment or not. On this Mr. Henchman remarked, that on 
 the 2d inftant, the Court had unanimously agreed to pay 
 this intereft, but if the Company's funds were at any time 
 unequal to V, tlen it JhcuU become a charge on the public. 
 The difference was clear j one was a contingent expence, 
 the other is pofltive. 
 
 Mr. Henchman faid, it was right to obferve further, that 
 when there was the leaft likelihood of the Company being 
 unable to make the payment, tha* is in peace, then words 
 were inferted declaring, that the burden fhould fall on the 
 public ; fo that it poutively requires payment (in war) when? 
 the company mud be the leaft able; but at any future period 
 
 (after the war) when it has been ftated that it is almofl im 
 
 ' .-I v*j a o
 
 poffible, the Company fhould not be in condition to pay 
 then it provides for a contingency, not admitted to be within 
 the fcale of probability. 
 
 Mr. Henchman faid he had remaining, only to trouble 
 he Court for leave to aft one queftion of the Chair, and 
 that was refpecling the order in which the payment of this 
 intereft was intended to be placed ; the Refolution fays after 
 the dividend, and the other charges which precede the par- 
 ticipation, then this intereft is to be paid. Mr. Henchman 
 faid, this was not to his mind perfectly explicit ; becaufe there 
 . were 500,000!. of biils from India to be paid annually. 
 Was it meant that thefe were to he firft provided for ? in- 
 ; deed, that every expence was firft to be difcharged, that pre- 
 ; ceded the 500,000!. in the participation account ? (the an- 
 1 fwer Mr. Henchman received was, yes). Mr. Henchman 
 * (aid he was fatisfied, and he concluded with remarking, that 
 the mortgage on the Indian territory, which was offered was a 
 J mere chimera, the fee fimple would not produce two year pur- 
 chafe j and that the annual net revenue was only 1,200,000!. 
 fo that he could eafily imagine a cafe in which this mortgage 
 would be of no value at all. Suppofe another war to hap- 
 pen for the five laft years of the charter, the Company would 
 be at great expences, poflibly fubjedl to fome misfortunes : 
 their deficiency might be feven or eight millions, the Pro- 
 prietors of that time might not fee any thing fo encouraging 
 as to make them wifli to renew their charter: they might 
 rather wim to refer to government under this mortgage to 
 make good the deficiency ; and to admit them to fettl e 
 their affairs. Can any man think the nation would then 
 confent to pay eight millions, No : they would fay, the 
 Company may be left in pofleifton, the public do not wifli at 
 
 fuch an expence to take the Indian territory into their own 
 hands. 
 
 Mr. Henchman faid the Company had as good a fecuri- 
 
 ty at prefent, and fliould not weaken their right, by ac- 
 ceding
 
 cepting fuch *n unprofitable ofFer, which was conve- t 
 nient becaufe it would never be thought off from this time \ 
 for thefe eighteen years to come ; and was capable of being 
 made fuch ufe of only, as the minifter of that day might 
 think fit. No, Mr. Hertthman faid, the only fecurity was at 
 SINKING FUND; that would have its effeft immediately /\ 
 and conftantly -, it would be working the restoration, and 
 fafety of this company daily and hourly, and the good con- 
 iequences would be clear to the public, by the rifing credit 
 of their (lock, and by every fucceeding account of the flats 
 of their finances ; whereas if this Refolution pafled, adieu; 
 to the guarantee fund, adieu indeed to all fecurity whatevejj 
 for fuch Propofitions might be repeated, as often and to stij 
 large an amount s Mifli^ers thought proper.
 
 .LOS /vngcics 
 This book is DUE on the last date stamped below. 
 
 5 J985 
 
 Form L9-25>/t-9,'47(A5618)444 
 
 
 
 AT 
 
 LOS ANGKLS8 
 LJBRAKT
 
 H38s Substance of a 
 
 speech deliver ed_ 
 
 by Mr. Henchman. 
 
 000 965 831 1 
 
 DS 
 
 465 
 H38s
 
 r ^s .