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HISTORICAL VIEW

OF PLANS,

FOR THE

GOVERNMENT OF BRITISH INDIA,

AND REGULATION OF

TRADE TO THE EAST INDIES.

AND

OUTLINES OF A PLAN

OF FOREIGN GOVERNMENT, OF COMMERCIAL OECONOMY,
AND OF DOMESTIC ADMINISTRATION,

FOR THE

ASIATIC INTERESTS

GREAT BRITAIN.

LONDON:

Printsd roi J. SEWELL, Cornhill; and J. DEBRETTi Piccadult,

M.OCC.XCUI,

7 7 i5 14

...... ;.

53'

1^ -^3

PREFACE.

x\S the Leginature are about to deliberate and de-
cide on the Afiatic interefts of the Empire, every
information, upon this great national fubje£^, will be
received with candor and perufed with impartiality.

However important India affairs have become,
the ftudy of them has been, in a great meafure, con-
fined to the Dire<9:ors and Company's fervants ; to the
Minifters to whom His.Majefty has affigned the public
duty of connecting the political and commercial
proceedings of the Company, with the general in_
terefts and profperity of the Empire ; and to Parlia-
ment, to whom both the Directors and the Executive
Power are refponfible.

It hai now, however, become neceffary to lay
before the Legislature and the Public, the eyents
and circumftances from which a plan for the future
government of the Britilli territories in India, and

regulation

vi PREFACE.

regulalion of the trade to the Eall-Indies muft pro-
ceed ; and with a \\e\v to this object, the following
work has been compiled.

In the Introduftion, the leading events in the
Pliftorv of Hindooftan and of the Eaft-India Com-
pany are explained, as the fource from which the
fuccelTive plans upon the fubje£l of Indian affairs
have proceeded, as well as the fyftem upon which
the Britilli intcrefls in the Eail are at prefent admini- '
llered. •

In Part I. a digeft of the plans from the conquefts
of the Company till their affairs came to be placed
under the controul of the State, and from that period
to the prefent times, is brought under review, that
the political and commercial principles, which muft
direft in tlie future adminiftration of Indian affairs,
might be fully perceived. ^,

In Part II. the outlines of a plan of foreign go-
vernment, of commercial oeconomy, and of domeftic
adminiftration are fubmitted to examination. The fo-
reign government is deduced from the Hiftor\'- of

Lidia,

PREFACE. vli

India, and from the mixed tenure of conquefls and of
treaties by wliicii Great Britain holds its pofledions.
The judicial, financial, and military powers required
to adrainifier this government with eiTeft, are ex-
plained, in their relation to both of thcfc fources of
information.

The connexion of the Eaft-India trade with the
revenues of the provinces, and with the revenues of
the nation, is next examined; and fuggeftions- for
the improvement of the export trade, of the circuit-
ous trade within the Company's limits, and of the
import trade " are fubmitted to confideration. A
fketch of the conftitution of the Courts of Directors
and Proprietors, and of the Board of Commiilioners
for the Affairs of India, concludes this review.

The authorities upon which the whole of this
detail refts, have been obtained either from the re-
cords of the Company and from the archives of the
State, or from the communications of thofe wliofe
official and local knowledge qualify them to aid their
country upon this important occafion.

O N T E N T S.

Iktrodution . ;, . Pao-e i

PART 1.

HISTORICAL VIEW OF THE PLANS WHICH HAVE BEEN OFFERED
FOR THE GOVERNMENT OF THE ASIATIC TERRITORIES OF
GREAT BRITAIN, AND REGULATION OF TRADE TO THE
EAST-INDIES; WITH THE POLITICAL AND COMMERCIAL
PRINCIPLES WHICH SEEM NECESSARY TO BE RECOLLECTED IN
FORMING A PLAN FOR THE FUTURE ADMINISTRATION OF
INDIAN AFFAIRS.

CHAP. I.

Review of the Plans which were fuggefted for the Govern-
ment of the Afiatic Territories of Great Britain and Re-
gulation of Trade to the Eaft-Indies, previous to the Efta-
blifliment of the Board of Commiflloncrs for the Aflairs
of India, - - - Page 46

C FI A P.

[ ^ ]

CHAP. ir.

Review of th^ Memoirs and Plans for the future Adminl-

fliation of the j^ritifh Pofilllions in India, and Recrulation

of the Trade to tlic Eaft-In lies, which have been pro-
pofcd fince the Eilabliflimcnt of the Board of Commif-
fioners for the Affairs of India, - Page 165

CHAP. III.

Commercial and Pohtical Principles arifing out of the
Nature of the Trade to the Eaft-Indies, and of the Hif-
tory of the Countries within the Company's Limits, -which
fceia neceflary to be recoheded in forming a Pla:i for
the future Adminiftration of Indian Affaas, - Page 267

PART II.

OUTLINES OF A PLAN OF FOREIGN GOVERNMENT, OF COM-
MERCIAL OECONOMY, AND OF DOMESTIC ADMINISTRATION,
WHICH SEEMS TO BE CALCULATED FOR THE PRESERVATION
OF THE BRITISH POSSESSIONS IN INDIA, AND IMPROVEMENT
OF OUR TRADE TO THE EAST-INDIES.

CHAP.

C ^i ]

CHAP. I.

Plan of Government for Britifli India, with the Judicial,
Financial and Military Powers required to fupport it.

Sect. i.

Of the Plan of Government required for Brhijl)

India, - - - - Page 351

Sect. 2.

Of the 'Judicial Power required under the precede

Ing Plan of Government, » • 383

Sect. 3.

Of the Financial Power required under the pfe-

ceding Plan of Government, - - 459

Sect. 4.

Of the Military Power required under the pre-
ceding Plan of Government, - - 493

CHAR

[ ^^'^ J

CHAP. 11.

Obfcrvations on the Trade to the Eafl-Indles, in Con-
nexion with the preceding Plan of Government, Page 527

CHAP. III.

Idea of the domeftic Adminiftration which, in coincidence
with the preceding Plans of foreign Government, and of
Eafl-India Trade, appears to be practicable and expedient
for rendering the Britifli Provinces in Afia and Trade to
the Eaft-Indies more efficient Branches of the Empire,
and of its Refources, - - - Page 591

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH INDIA, Sec.

INTRODUCTION.

CONTENTS.

Indian Affairs, an important National Subjcdl — A Plan for the
Direaion of them required— Objea of it— Difficulties arifng from
the Diverfty of Opinions refpedling it,— from the CharaSlers of
our Indian Provinces, as Branches of the Britifj Empire,— from
the Circumjlances which have attended the Rife of the Britifh
Power in Hindoofan, and the Dijlance of our Indian Provinces
from the Seat of Government— Origin of Jfatic Commerce, —

B . frj

OF THE BRITISH GOVERNMENT

frjl Afpccl of it among the Europeans — Difcoveries and
Conquejis of the Portuguefe, — of the Dutch, — of the French.— ~
Rfe of the London Eajl India Company — FffeSts of the Revolution
1 6 8 8 , o« this Company's Rights — Union of the London andEnglijh
Companies — Spirit of their Charter, and Sketch of their Progrefs —
Situation of the United Company at the Peaceof Aix la Chape lie, —
at the Peace 1 763, — at the Peace 1783 — Parliamentary Enquiries
into the State of Indian Affairs inflituied — Refult oj them, leading
to general Plans, for the better Govc-iiment of our Indian Interefs
Specific Plan of i 784, which pajjed into a Law — New Ar-
rangements of the Company* s Bufmefs introduced by the Com-
mijftoners under this Act — Beneficial Effects of them — Bill required
to explain the Extent of this ASl, in 1 788 — Events which led to this
Bill — Obje^ions made to it — Thcfe Objections removed — Farther
Amendment of the A^ 1784, in 1790-91 — EffeSl of thefe hu'
provements on the general ^ef ion refpecting Indian A fairs — The
Bill by which they are finally to be arranged tnujl be one of Sy ft em
—Importance of this fubjecl — Claims of the Eaji India Com-
pany, — oJ the Nation — Both muji be lifened to by the Le-
gijlature, — and not clogged with Speculations — Means already
pojfeffedby the Public for examining the Subject. — Farther Infor-
mation required to enable the Public to fulfil its Intentions refpeSiing
India, viz. — The leading Events^ in the Hifiory of Hindooflariy.
—of China and of the Eafiern IJlands, — of the EaJi India
Company, — Hi ft or y of the Plans which have been formed for tht
Government of Britiff India, and Trade to the Eaft Indies.-^
References to thefe Sources of Information the Objetl of this Work,
and the proper Foundation for a Syfiem of Indian Affairs,

AND TRADE IN THE EAST INDIES.

XTlS the period has now arrived, when the prefent plan introd.
upon which Britifh India is governed and the trade to the i^^i^^ aftairs
Eafl-Indies regulated, muft either be continued or altered, ^" important

° . national fub-

it becomes neceflary to lay before the Legiilature and the jeft;
Public, every fpecies of authentic information which feems
calculated to affift the nation in deciding upon a fubje6t
of fuch general importance.

Parliament having given Notice to the Eaft-India Com-
pany (agreeably to the terms of its Charter) that its exclu-
iive rights and privileges expire in March, 1794, a plan, for
the future government of our Afiatic dominions and regu-
lation of our trade to the Eafl-Indies, muft be devifed and
carried into effect.

a plan for
the dircftion
of them re-
ciuifcd—

If formerly our Indian dominions and trade were diredted ^''J^'^ °f 'f>
and controuled by regulations only, becaufe we were
ftrangers to the political fituation of thofe dominions, the fame
difficulties no longer exift ; for we have had the advantage of
experience, from the application of thefe regulations, and are
prepared to judge of the value of each of them, and, of
confequence, to form a fyftem arifing out of the nature of
our acquifitions in Hindooftan, and of our trade to the coun-
tries within the Company's limits. The objedt of fuch a

B a fyftem

4 OF THE BRITJSM GOVERNMENT

IN'TROD. fyftcm is fimple— It mufl be calculated for the prefervation
of the Brltifh dominions in India, and for the extenfion and
improvement of our domeftic and foreign trade.

S'"'"fiom Every man of obfcrvation mud be fatisficd, in the firft
the diverfity place, that the opinions of the Public are far from being;

of opinioiii , _ ' _ 1 1 r

rcfpectuig it, in unifon, as to the fyftem which ought to be adopted for
the future government of Britilh India, or for the regula-
tion of our Afiatic commerce ; — that much is due to the en-
terprifc and merits of the Eaft-India Company, to whom
Britain originally was indebted for valuable dominions, and
an important branch of its trade, and that care muft be
taken to continue with them fuch privileges only, as are
confiftcnt with our general commercial profperity, and yet
to place the adminiitration of Indian affairs on fuch a foun-
dation, as not to bias from the center upon which they turn,
any of the component parts of our happy Conftitution.

Fmmthccha- It ouglit, in the next place, to be recoIle6led, that the
imtian^'pio- ^'^'^^^^^''^ Comprehended in the Britiili Indian empire are
Tinccs— of various and diftindl charadlers, and that the regulations
to be propofed for their future government mufl be reconcile-
able to the manners, to the kinds of religion, and to the va-
rious territorial or commercial refources of the people for
whom they are intended. Our dominions inHindooftan, it
mufl be remembered, fpread over a country almofl equal ta
Europe in extent, and arc inhabited by nations as different
from each other, in origin, in feelings and in habits, as all
of them are from Europeans.

6 Therk

ANDTRADEINTHEEASTINDIES. 5

There can be no difference of opinion, with refpe6l to INTROD.
the adminiftration required by the fpirit of the govern- as branches
ment, for Britain itfelf, where the executive has been con- "^''l^ Bmifh

' _ ' empire,

troled by the legiflative power ; and where both have been
refined by the mild adminiftration of our laws. Circum-
ftances, however, both local and accidental, have rendered
the extenfion of our free government and mild laws to
our foreign and diftant dependencies, difficult and in fome
inflances impradlicable. The remote fituation, and the
various defcriptions of our dominions, in the Eaft-lndies,
have made the full communication of the privileges of Bri-
tifh fubje6ls to the natives, an obje6t rather to be defired
by the liberality of the nation, than to be reconciled to the
a6lual adminiftration of our affairs.

It ought, ir» the third place, to be remembered, that Fromthccir-
the relation of Great Britain to its Afiatic dominions is of which'ha"e
a mixed and novel kind. It betran with commerce ; it was ^"^"^^,'^ '''5

^ _ _ _ rife 01 theBn-

reared up by arms ; it has terminated in the acquifition of t'fl» power in.
territories, by treaties and by conquelts. An immenle
army of the natives trained in the modern art of war and
commanded by European officers, and a large body of re-
gular Europeans in the King's and Company's fervice, have
been required to maintain thofe poiTcfTions ; while great po-
litical wifdom, refulting from the experience of the Directors
and of Parliament, has been called for in the adminiftration
of our power, and in finding out channels for the circui-
tous commerce, by which the furplus revenues might be
made to flow home, for the benefit of the Proprietors and
gf the Public at large.

Thf.

OF THE BRITISH GOVERNMENT

INTROD.
« >, '

And the dif-
i.iiKc ut our
1,1^. ..n pro-
viiic'i from
the feat of go-
vernment.

The relation fubfifling between Great Britain and its
Afiatic dominions is thus a new event, in the hiftory of
mankind. As a political phoenomcnon it has been the
wonder of foreigners, more particularly when they adverted
to the circumftances, that the feats both of our Eaftern
dominions, and of our trade, are diftant from us nearly
half the circumference of the globe, and that we have
difcovercd the j->olitical fecrct of maintaining our fovc-
reignty, by an adminiftration that is local, difcretionary
and prompt ; and yet of engrafting by it, on Afiatic infti-
tutions, degrees of the mild maxims of Britifh govern-
ment and laws.

Origin of
Ali.itic com-

In order to explain the fourcc of the Britilh power
in Hindooftan, we fliall have, in a particular manner, to
advert to the events out of which it has arifcn.

In ancient times, the commerce between Europe and
Afia was carried on, partly by land, partly by the courfe
of great rivers and a clogged coafting navigation. ^ The
Eaftern fdks, fpices and aromatics, and precious ftones,
were in the higheft eftimation, among all the nations of
antiquity ; but the conquefts even of Alexander, in India,
were limited, while thofe of the Romans never led their
legions beyond the Banks of the Euphrates.

Firft afpc.^ of At thc time when the modern Europeans began to aflume

tj'roneansV^ a civilized character, they alfo imbibed a tafte for the

luxuries of Alia. Thc iliips of the Italian free ftatcs, for

2 this

AND TRADE IN THE EAST INDIES. 7

this end, took up the Indian goods, which by means of ^^'^T'^QP^
caravans and the navigation of rivers, had reached the
fhores of the Mediterranean, and difFufed them over Lhe
Northern kingdoms of Europe.

Towards the clofe of the fixteenth century, the minds -^

of the Europeans, in general, began to take an adventu-
rous turn. This bias was ftrengthened by the difcoveries
which had been made in thofe natural fciences, that are
fubfervient to the creation and improvement of the ufeful
arts, and it terminated in exciting a general dcfire, to
make difcoveries and to encourage trade.

In this new and bold career, Spain and Portugal, unex- Difcoveries
pe61;edly took the lead : both courts patronized fchemes ot-'Jhc'ponu-
for exploring, not only thofe parts of the world, which S"efe,
hitherto had been concealed from the Europeans, but for
finding out tra6ls, which fliould be better fuited to the
purpofcs of trade, than thofe which had hitherto been
purfucd.

Under this impreffion, Columbus fought a new route to
the Eaft-Indies ; but, by an accident, was driven to the
Continent of America, there to rear a new pillar of the
world, on which the crown of Spain was to lean.

Vasco de Gama, foon afterwards, on the original plan of
Columbus, of finding a paflage to the countries in the Eafl:,

which

OF THE BRITISH GOVERNMENT

INTP.OD. which had been defcribed by Marco Polo, doubled the Cape
of Good Hope ; failed along the coaft of Africa, and reached
the great peninfula of Afia. Gama, by this difcovery, gave
to Portuc:al a trade, more valuable than that which Co-
lumbus had conferred on Spain, though he could not
annex to his country, either territories fo extenfivc, or a
trade fo immediately produ6live.

The Fortuguefe conquefts in the Eaft, in a fliort time,
were of the moft fplcndid kind. The riches which the
fliips of this nation brought to Europe, enabled Emanuel,
its Sovereign, in fome degree, to balance the power of his
mightier neighbour ; while the "fame of his conquefts, in
the ihort fpace of tv.enty-four years, confirmed the general
propenfity to commercial enterprize, which already had been
taking root among the European nations.

Portugal, foon after this period, became a dependency
of the crown of Spain. The Eaftern Portuguefe, upon
this event, confidcred their relation to the mother-country,
to be, in a meafurc, diflblved. It was during this ftate of
their feelings, that Philip, with an impolitic feverity, pro-
hibited his Afiatic, from having any intercourfe with his
revolted fubjects in the Netherlands.

—of the The Dutch bad already thrown off their dependence on

'*'*^ ' the crown of Spain, and were ftruggling to eftablifh their

civil and religious freedom. Thefe new republicans had

motives to induftry of every kind; they poflefTed a country

which

AND TRADE IN THE EAST INDIES. 9

which did not afFoid provifions for a third part of its in- introd.
habitants, and they had no other refource, but in their in-
duftry and maritime fkill. Patient in their tempers and
perfevering in their pnrpofes, trained too in a country,
whsre maritime, if not the only, was certainly the principal
purfuit ; they catched, at once, the fpirit of enterpiize,
becaufe it promifed them, at the fame time., power and
ample gain. For thefe purpofes they fent their armed iLips
to the Eaft, eftabiifhed fa6lories, became the rivals and
fupplanters of the power and influence of the Portuguefe ;
and, at laft, erected their feveral, but connected Eaft-
India Companies.

France was then governed by Henry IV, who had for r;"^ ^^^
his minifter the Due de Sully. Though occupied, at this
jun£lure, in oppofmg the fchemes of the Empire, France,
in a fliort time, caught a degree of the prevailing fpirit of '
adventure, and became one of the rivals, which the Portu-
guefe, the Dutch and the Englifli had to meet, in the
eaflern markets. It does not, however, appear, that France,
during the greatefl part of the feventecnth century, under-
flood the principles upon which a foreign and diftant trade
could be eftablilhed, or that its mercantile oeconomy was as
3^et ripened for any thing beyond a narrow trade with its
European neighbours.

The Englifh nation had, during thefe events, neither i^ireoftbe

been infenfible to the value of this commercial objedl, nor India Com-

jQow in its efforts to extend its trade and navigation. Pof- ^■"^•^'

C fcffcd

10 OF THE BRITISH GOVERNMENT

IN'TROD. feficJ of more national ardour and yet equally perfevering
vith the Dutch, emerging too from civil and religious
thraldom, it determined to participate with the Portuguefe
and Dutch commercial adventurers, in the profits of the
trade to the Eaft-Indies.

It was not to be expedted, in this early flage of trade,
that the ftock of any one individual could be equal to the
expences, or to the rilk of fuch a fcheme. A Company,,
therefore, was formed, which united the floci^s of indivi-
dual merchants ; and, by a royal grant, was made a body
corporate, capable not only of acquiring property, but of
holding a territory under the Crown.

As the trade to the Eaft increafed, the London Eafl-India
Company obtained additional privileges from a fucceffion
of fovereigns ; wdio, in return, received confiderable fums
of monev, and an increafe of revenue.

^vof'iion*'^ The period, however, approached, which gave a fixed
1688 on this chara6ler to the Briti(h conftitution, and queftions now

Company's . . ro- 1

rights. began to be mltituted in courts or law, reipecting the nature

of exclufive privileges of trade, and rcfpeiSling the titles of
the Sovereign to grant them. As the decline of the abfolute
power of the Crown was drawing near, and the nation were
preparing for a precife and defined Bill of Rights, the decifions
on thefc queftions, in the different courts of law, were gra-
dually taking a more liberal form; till, at laft, the revolu-
tion of 1688 took place, and the diftin6lion between a
3 fimple

AND TRADE IN THE EAST INDIES. n

fimple right of the Crown and a charter from the Sovereign, introd.
proceeding on an agreement with parhament, for a valuable
confideration, was fully and accurately defined.

An accident, foon after this memorable a^ra, brought this Umon of the
principle to maturity. Parliament had entered into an Engiimcom-
agreement with a new trading aflbciation, to be deno- i'""'"-
minated the EngliJJj Eajl-India Company, and had inconfi-
derately transferred to it the rights, which could not be
taken from the Old or Londofi Company, without violating
the 13th article of the Bill of Rights, as well as the ef-
tabliflred laws of England. The oppofition of two India
Companies, oi the fame country, to each other's progrefs, was
too violent to be lafling. It was found, that the profperity
of both, was incompatible, and that the continuance of
their oppofition to each other could only terminate in their
common ruin. An union, therefore, of their interefls,
appeared to be the obvious and neceffary means, both for
preferving and encreafing the Britifli commerce to the Eaft,
and for enabling the nation to meet, with fpirit and eft'edl,
the fuperior advantages poffcffed by the Dutch.

'The United Company of Merchants Trading' to the Eafl- Indies, Spint of their
was therefore eftablillicd. To it were transferred the pri- Charter, and

• flcctcli oUheir

vileges which the London Company had got by fucccfllvc progrcfi.
grants from the Crown, and the Rights, whicli the Englifh
Company had acquired from the Sovereign, npcn the bafis of
the 13th Article of the Bill of Rights. PofTcffed of a flock,
proportioned to the magnitude of their fchcmcs, and aiSt-

C 2 ing

12 OF THE BRITISH GOVERNMENT

INTROD. ing under a Charter of Rights, which refted on the bafis
of the Conftitution, the feats of their commerce multiplied,
their exports foftered our rifing domeftic arts and manu-
fai5lures, and their imports gave raw materials to both,
added to our public revenue, and raifed our commercial im-
portance in Europe.

For many years the territorial acquifitions of the Eall-
India Company mufl be viewed in the back ground of their
commerce ; but during the laft thirty years, their commerce
has become a fubordinate obje6t to their territorial pof-
feffions.

During the war which terminated in 1748, France began
to form the bold fcheme of becoming one of the fovereign
powers in Hindooftan. The nature of this undertaking,
and the probable fuccefs of it, with reafon alarmed the
Englilh company, who now faw that the feats of their
ancient commerce in the Eaft were in danger of falling
into the hands of an European rival; and that thofe pro-
fits, which they had for fo many years drawn from their
trade, might, in a moment, be fwept away from them
by the united arms of their Indian and French enemies.

Siniation of TiiESE alarms were, in appearance, difpclled by the peace
CoJpany'^at of Alx hi Chapellc , in 1748, which rcflored their Indian
til pcacr of factories to the French and Eiio-lifli nations. It was

Aix \i Cha- rr 1 1

pcUc— impoflible, however, that cither of thefe powers could be in-

different

AND TRADE IN THE EAST INDIES.

»5

INTROa
.^ '

different to a prize of fuch value as a territory in Hindooftan, ^
which might afford a revenue fufficient ta fupport the force
required to defend it, and a furplus fum for the purchafe
of inveftments for the European market. Both countries
had armies on the Coaft of Coromandel, and the officers,
who condu6led each of them, had formed alhances with
the native princes and flates, with the concealed obje6t of
renewing the wars, which were to terminate in rendering
one of thefe European nations paramount in India.

The diflreffes and embarrafTments, which this fituation
of affairs brought on the French and Englifli companies,
induced the rei"pe6live Directors of each to apply to their
Sovereigns, praying them to interpofe their power, and
to fix on fome folid bafis the Rights and Privileges of their
fubje6ls in India. Terms of accommodation were, in a
meafure, agreed on by the two Courts, v/hen the war,
1756, uuexpededly took a decided and declared form.

If, in this war, the fuccefs of Great Britain in North At the peace
America, brought that large Continent within the widen- '^ ^'~~
ed circle of her power ; her viiStories and acquifitions in
Afia, fecmed rather to be a chain of miracles, than a fuc-
ceffion of real events..

Britain now became foverelgn of the rich provinces of
Bengal, Bahar, and Orilfa, of the Noithern Circars, and
of part of the Carnatic; while ihc not only retained her
ancient poffcfTions on the Coaft of Malabar, but laid the

found.-

OF THE BRITISH GOVERNMENT

INTROD. foundations of a more cxtenfive commerce in the gulf of

' ' ' Pcrfia. FIcr influence, too, over her allies, the Vizier

of Oude and the Nabob of Arcot, and over the difl:ri6ls

depending on them, if it did not amount to a fovereignty

in name, has, in the event, become one in reality.

At the peace TwENTY years had only clapfed from this memorable
''^^' xra, when Great Britain had to contend with France, with

Spain, with Holland, and with her own revolted Colonies.
The pride of a great people will lead them to wi(h, that they
could drop the curtain (and for ever) over the events of
this fatal war ; for the'fake of thefe natural and honorable
feelings, we fliall fuppofe the memory of it to be obli-
terated, and rather look to the Eaft, where Britain was
ultimately fucccfsful.

Whether we ought to refer the prefervation of our Afiatic
empire to accidents, or to the talents and wifdom of the
fervants of the Eaft-India Company, it is not onr province
to decide. The fact admits not, happily, of any doubt.
If, in the Weftern world we had provinces to relinquilh,
if at home, we had debts of an alarming magnitude to dif-
charge ; our dominions and trade in the Eaft Hill remained
entire, and had even been encreafed. The nation, there-
fore, looked to the Eaft-Indies, as the moft important
foreign dependency it poflcfled ; by its trade to A Ha it
hoped to revive its arts, difFufe its manufaiSlured produc-
tions, rcftore its revenue, and, once more, to give fplen-
dor to its empire.

India

AND TRADE IN THE EAST INDIES.

»5

India had, previous to and during the war, become the
fubjedl of pubhc attention, and the conduct of the Company,
of Parhamentary difcuflion. The Houfe of Commons, fatis-
fied that information refpe6ling the true flate of the Britilh
dominions in the Eafl was wanting, had appointed fuc-
cefiive Committees compofed of members of acknowledged
probity and talents, who, with great impartiality and ability
have given, from evidence. Reports on the condu6t of the
fervants of the Company, in the different wars which had
been carried on in Hindooftan ; on the nature, value and
extent of the Britilh dominions in the peninfula of India ; on
the revenues which they could yield ; and on the expcnfes
requifite for fupporting the civil and military eftablifli-
ments neceflary for their prefervation and profperity.

INTROD.

'^ . '

Paillamen-
tary enqui-
ries into the
ftate of In-
dian affairs
inftltuted-.

The refult of thefe Reports, however, feems upon the Refuit of

... them leading-

whole, to have been the formation of a general opinion, to general

that the interefts of the Company, and of the nation, had, bettTrgo-*^*
in many inftances, been mifunderllood, and, in fome cafes, ^e'njnsnt o^

■' ' ' ' • ' our Indian

loft in thofe of individuals ; that the Company, though interefts.
qualified, from their cbara6lcrs and purfuits, to be mer-
chants, were not competent, (at lead on difficult emer-
gencies) to be fovereigns. A fyftem, therefore, was now to
be brought forward, the objc£t of which, in the firft place,
fhould be to remedy the evils arlfing /rom the mal-adminif-
trationof the Company's fervants abroad, and, in the next
place, to render India itfelf a produdlive branch of the Britilh:
empire.

The

i6 OF THE BRITISH GOVERNMENT

INTROP TiiK cflablifliment of thcfc p;enei"al opinions, both in the
minds of the nation and of tlic Icgiflaturc, produced the
plans of affording the protection of the laws of England
to the natives of India, who are fubjedls of our govern-
ment; of taking meafures for rendering the fervants of the
Company abroad more obedient to the orders of the
Dire6tors at home ; and of fubjedling the Diredlors to the
luperintcndence and controul of the executive branch of
government. Thcfe fchcmes, by degrees affumed a
more defined afpc6t ; but what rendered them difficult of
execution was, that the public, in general, were as yet
ftrangers to the true (late of our Indian affairs, though difpo-
fed, from their prejudices, to cenfure and condemn the Com-
pany's fervants, for the peculation and crimes, which, it was
alleged, they had committed ; and ready to fecond the
meafures by which a reformation of thefe abufcs was recom-
mended. Under thcfe impreffions, fpecific plans were pro-
pofcd to parliament in 1783-4, by Mr. Dundas, Mr. Fox,
and Mr. Pitt, which, from the circumftanccs of the times,
were laid afide, but will be brought under review, in this
work, to enable the Public, by drawing from every fource,
to devife a fyftem fuited to the actual ftate of our Afiatic
intcrefts, and founded on experience and pra6licc.

Specific plan The nation however were fully fatisfied, that fome plan for
"V^',^"*' n- . new modcllinc: the adminiftration of our Indian interefts,

whicli p^ilTca ^

into a law. muft bc dcvifed and adopted ; one of the firftadts, therefore,
which paffcd in the late parliament, was, " A bill for the
better managment of the Eaft-India Company at home, and

AND TPvADE IN THE EAST INDIES.

in their diflerent fettlements abroad.'" It proceeded upon the
principle of confirming the Chartered Rights of the Com-
pany, and of introducing the authority of the State to
controul all operations and concerns relative to the civil
*and military affairs of the Company in India.

This bill was profelTedly one of experiment, not of fyf-
tem ; for the Legiflature and the Public were now fully
convinced, that they had not acquired information
fufficient to enable them to form a fyftem, upon this
great national concern. Care, however, was taken in
the body of the bill, to check future peculations or
crimes in the Company's fervants ; and to give efficacy to
the orders of the Directors, by making difobedicnce to
them cognizable by a court of judicature, and a mifde-
meanor. That the power of the Gov^ernor-general might
be prompt and efficient, his decifions were rendered fu-
preme, over all the Company's fettlements; our Indian pof-
feffions thus became, though indircdlly, more fully under
the fuperintendence of the executive branch of the Confli-
tution, while the exifling rights and privileges of the India
Company were left entire.

One of the firfl circumftances which attracled the no- Ncw ar-

tice of the Commiffioncrs appointed under this adl was, that ^f Vhe'co""

the Direflors, in the difcharge of the executive powers P='"y!^ b"'"'-

vvhich had been entrufted to them, had, from a want of duced by the
authority, been unable to enforce their own orders, and

that in each of the Prefidencies, an irregularity and evafion ^^"' ^^

D of

Conimiffi-
oners under

i8 OF THE BRITISH GOVERNMENT

INTROD. of the inflru6lions, which had been fent out to them, had
prevailed. The fii ft of thefe evils was remedied (as has al-
ready been obferved) by the a6l having rendered difobedicnce
a mifdemeanor ; the fecond of them was done away, by the
introduclion of a regular plan of bufincfs, into the admini-
ftration of the different Prefidencies. This lafl meafure, His
Majefty's CommifTioners carried into effect, by dividing the
bufineis among fourdiftinct Boards, tov,\tyt\\QBoardofCoun-
cily the MUitary Board, the Board of Revenue, and the Board of
Trade. The tranfactions of the whole were to be under the
management and controul of the Governor-general and
Council, or Prcfident and Council, who alone were to cor-
refpond with the Diredtors. The bufincfs of each Prefidency
was thus reduced to departments. In the Public Deparinieni
the Governor and Council had already had the cognizance
of all the letters, which were not of a political nature, as
tranfmitted to them by the fubordinate Settlements. They
had fiiperintcnded all commercial tranfadtions with the
Company's fa6tories in China ; they had ifTiicd their orders,
in whatever regarded trade and lliipping ; they had received
and anfwered all perfonal applications ; and had regulated
the duties of the fubordinate offices of every defcription.
In their charader of a Secret Department, they had confined
themfelves to fubjc6ts of a political nature, whether thofe
which came dire6tly from the fubordinate Settlements, or
thofe which were tranfmitted to them by the Company's
refidents, in the dependant provinces, or at the courts of
the native princes and (tates. In this capacity, alfo, they
had dirc6ted all tranfa6tions with foreign nations, hav-
ing

ANDTRADEINTHEEASTINDIES. 19

inff fa(5lones or cflablifiiments in India, and had iflued the introd.

orders, for the movement or employment of the troops.

The bufinefs, however, was now ftill more accurately fub-

divided. To that part of it, which regarded tranfa6lions

with the native powers, was given the name of the

Political Department ; and to that which referred to the tranf-

a6lions with European powers, having interefts in India,

of the Foreign Department ; with thele amendments, the

bufmefs of the Public Department became fimple and defined,

and in a fhort time, checked that evafion or irregularity in

the correfpondence with the Diredlors, which had formerly

prevailed ; to the Military Department was committed every

thing which regarded either the conftitution or the tranf-

adlions of the army. Whatever had a reference to imports

and exports, was entrufted to the Commercial Department.

The management of the rents of lands, the colle6lion of

the duties ; (and, in Bengal, the government of Benares)

were ailigned to the Revenue Department.

In confequence of thefe meafures, the adminiftration Beneficial
of our Indian pofTefiions and trade has become regular and '^f^'*^ °*
efficient ; the credit of the Company has encreafed ; the
price of India flock rifen higher than the moft fanguine
of the Proprietors could have expe6led ; the trade of the
Company has been almoft doubled ; the duties paid by
them to the Public been augmented ; tranquillity for
a courfe of years maintained ; and a war, not lefs neceffary
than politic, fupportcd with dignity, and happily termi-
nated with fuccefs and honour.

D2 But

20 OF THE BRITISH GOVERNMENT

i.s'TROD. But Mhile improvements were thus introducing into the
. , aJminiftration of our Afiatic dominions, an event occurred in

Bill required

toexpiaiiithe the pohtical fituation of the European nations, which ap-

extentutihis , i i • i • • l^

aa ill 1788. pcared to augur a general war, and which, as it might
rcplungc India in anarchy and calamities, rendered it ne-
cclVary to explain, more fully, the extent of this a6t.

Evcntswhich A FACTION had long been forming in the United Provinces
bill. of the Netherlands, the objcdl of which, avowedly, was to

overturn the eftablifhed government of that country. The
leaders of this afTociation had been firfl: fecretly, and now
were openly patronized by the minifters of France. Great
Britain and its allies, upon this occafion, found it neceflary
to interfere, becaufe the prefervation of the balance of
power in Europe required, that our ancient allies fliould
not become the dependants of our declared rivals. The
Eaft-India Company on this occafion were naturally alarmed
for the fafety of their foreign poflcflions, and therefore pe-
titioned His Alajcfty, for a reinforcement of European troops,
as the only means of defending them from the attacks
of the native powers, aflifled by France. With his ufual
paternal care. His Majefly gave orders for raifing a certain
number of regiments for this fervice.

Nations frequently owe their prefervation to the impro-
vident meafurcs of their enemies. By an impolitic inter-
ference with our American provinces, France reflecSted not
that, in giving our Colonifts independence, the viper
which it had warmed into life, to dedroy a rival, might

turn

AND TRADE IN THE EAST INDIES.

turn on the fource of its re-animation, render it fickly,
and haften on its fate. It faw not, that there was a
danger of introducing and habituating the minds of its
own fubjc6ls to principles, as advcrfe to the duration of
the monarchy, as they have proved to the happinefs of
the people. This Court, when it was too late, began to
difcover the confequences of its improvident condu6t — in no
condition to fupport the faction it had raifed in the United
Provinces, it acquiefced in the terms which preferved and
confirmed the eftabliflied government of the Netherlands.

INTROD.

^^ ^— '

The moment that the alarm from the profpe(5l of a ge-
neral war had fubfided in Britain, it was made a queftion
in the Courts of Dire(?tors and Proprietors, whether the
regiments intended for India ought not to be diibanded,
and the recruits taken to fill up the thinned ranks of their
own battalions. The King, however, to give a proper im-
preflion, both to the European powers and to the native
princes and ftates, of his intention to fupport and maintain
the dominions of Great- Bjitain in Hindooftan, ordered the
troops to be embarked and fent to India^ It had, while this
affair was depending, been made a queftion by the lawyers of
the Company, " how far the Bill of Regulation of 17S4,
conveyed to the Commiflioners for Indian Affairs, an a6tivc
controul over the revenues of the Company in India ?" and
" whether or not the confent of the Proprietors and Di-
jc6lors had not been implied in the fpiiit of the acl ?"
The terms in the ait, it was agreed, had not been fuffici-
ently explicit, though it could not be doubted, that the

6 aa

Objeflions
made to it.

Theft (jbiec-
tions rcmov-
cJ.

,, OF THE BRIT ISII GOVERNMENT

INTROD. z£i itfelf intended to convey to the executive government,
the power of judging of the meafures which might be
deemed expedient for preferving our Indian poffefTions. A
Ihort bill, therefore, paflcd in 1788 to explain a point which
it was impofl'iblc to allow to remain a matter of doubt. To
remove every poflible objedlion againfl this bill, a claufe
was infertcd in it limiting the number of troops to be fent
out to India, and reftricting the Commiffioners from au-
thorizing any cncreafe of the eftablifhed falaries and emolu-
ments of any office there, unlefs fuch additions fliould be
firft propofed by the Diredlors.

Farther
amendment
of the acl
1784, in
1790-91.

The general government of the Company's affairs has
continued under thofe regulations to the prefent time, except
in the accidental circumftances when it became neccflary,
in confequence of the war, to fend out to India an additional
number of HisISIajefly's forces (during the Seflion of Parlia-
ment 1790-91); and alfo, to explain more fully, than the
A61 of Regulation 178+ had done, the powers of the
Governor-general when any exigency might require his
prefence in a fubordinate prefidency.

^ , Viewing then the pro2:refs of Indian affairs, either in a

V-Onlcquen- i o '

ccsofrhefc political or commercial light, the Adminiflration of the

improve- r • - ■ n~ • i

mcnts on the Court of Due6lors and Board ot Commiluoncrs, which has

non^efpca-" been happily in unifon, has had the mofl beneficial ten-

in| Indian dency, and prepared both of them to meet the great queflions,

— Upon what principles ought the ftate to govern its Indian

polTef-

AND TRADE IN THE EAST INDIES. 23

pofTeffions ? and Under what regulations ought the trade to introd.
the Eaft-Indies to be in future condu6tcd ?

The bill now to be propofed to Parliament for the fettle- The bin by
ment of thefe great national concerns, cannot be one of rre'h'naily^o
experiment, but mufl: be one of fyflem. Formerly the beairanged,

mult be one

rights of the Company, under their charter, were to be pre- of fyftem.
ferved ; and yet their poffeflions to be put indirecSlly under
the adminiflration of the executive government. Now the
charter is about to expire, and the quefbion is not only
what fyftem will be moft proper for the future government
of BritiOi India ; but, under what regulations can the trade
to the Eaft-Indies be carried on, fo as to increafe the induftry
of our artizans and manufadturers, and the general circuit
of our trade ?

The public and the commercial importance of this great imBonance
national queftion will readily be admitted. To the public, jea.' ^
it is of importance to preferve an extenfive and valuable
foreign dominion, to keep up a great and increafing revenue,
to continue and extend their navigation, and to maintain a
fuperiority over the other European nations trading to the
Eaft. To commerce it is of importance, as India is one of the
markets for the fale of our manufa6l:ures ; as it furniflies
the requifite materials for the fupport of others ; and as
it enables us to fell Eaftern commodities in Europe, in ex-
change for money, crude materials, and manufa6lurcd ar-
ticles, which are again to pafs into the circle of exchange.
On the whole, as it contributes, in an important degree, to

give

24 OF THE BRITISH GOVERNMENT

INTROD. give to Lii cat-Bi itain the balance of trade both in value and
in price.

Claims of the BESIDES thcfc Dublic and Commercial ends, political confe-

haft- India ' . ...

Company— qucnccs, HOt Icls momentous, are involved m the wife and
liberal difcuflion of this fubjecl. The Company, on the one
hand, will plead that though their right to an exclufive
trade is about to expire, they will ftill be entitled to remain a
body corporate, with a right to trade to the Eaft-Indies. on
their joint (lock, that they hold feveral of their pofTcfTions,
fuch as the ifland of Bombay, &c. in right of property, on
paying a fixed fum to the Crown ; that many of their other
pofleflions have accrued to them by purchafe ; and that all
of them are engaged as fecuritics for their debts; that thefe
debts, in many inftances, have been contra6led in wars for
their own defence, and all of them on legal grounds ; and,
on the whole, therefore, that it would be contrary to equityy
and the rights of Britilh fubjects, to deprive them of their
property, without allowing them, at leaft, its full value ;
and contrary to /^a*, to deprive them of the means which
they pofTcfs for difcharging, with honour, the claims of their
creditors.

Ofthcnation; The nation, on the other hand, may infift that the
rights of the Company were always undcrftood to be for
the term of their charter ; that undoubtedly being a body
corporate, they may continue to trade to the Eaft-Indies, on
their joint ftock, in common with his Majefty's other fub-
jccls ; that however ncceflary monopolies may be, in the

infancy

AND TRADE IN THE EAST INDIES.

infancy of a trade, in order to afford encouragement to en-
terprize and remuneration for the fervices done to the
public, they are prejudicial when trade has attained its
vigor; for then they check the fpirit of general induftry
among a people, and enrich a few at the expenfe of the
whole ; that no doubt, after viewing the profits of the Com-
pany fmce they obtained their different grants, as well as the
riches which they have acquired from the purchafcs they
have made under their charter ; and after confidering the
expenfes of their forts and military eftablilhments, and of their
fucojfTive wars, the public will allow them a rcafonable
compenfation ; but that this a6tof juflice cannot in any way
be argued as a reafon for including in this eftimate the value
of their conquefts, becaufe by the laws of the realm, whatever
the fubject, under the authority of the Sovereign acquires by
arms, or conqueft, becomes and is the patrimony of the
ftate ; that, on the whole, the queflion is not 7iq'1v what
rights the Company hold under their charter, (for this is
fuppofed to be expired, or at leaft the notice of its expira-
tion to have been given,) but what compenfation injuftice
is due to the Proprietors ? and what fyftem for the future
government of our Indian poffeffions and for the maintain-
ing of the trade of Great-Britain to the Eaft-Indies, will be
moft wife, praflicable and permanent ?

INTROD.

These claims of the Company and of the nation mufl Theci;iiins

be liflencd to with candor and impartiality, and decided of [^"ccW""'*

upon with forefight and fyftem. No reafonin2;s from what beiiftcned to

may happen are required to lliew, that the Icgiflature muft giiiatiuc,

E take

26 OF THE BRITISH GOVERNMENT

IN T ROD, faj^e caic that the commerce of Great Britain to the Eafl-
Indiesbe maintained in full vigor, neither curbed in its fpirit
nor diverted into a foreign channel ; nor are any reafonings
necefTary from principles to eftablifh, (what experience has
fo fully evinced) that the patronage of Indian trade and re-
venue ought to be fo placed, as neither to interfere with the
prerogatives of the Crown, nor with the privileges exercifed
by the reprefentatives of the people. Though fuch obvious
inferences rife from the moft general view of this great na-
tional queftion, it ought to be remembered, that whatever
bill may be introduced into parliament, in order to fettL the
interefts of the India Proprietors and of the nation, it muft be
adapted to the prefent ftate of Indian affairs. The rights of
the Company, if they are to be vefbed with a new Charter,
muft be defined, and our Afiatic poireffions muft, as far as
the nature of them will admit, be incorporated with the
Britifli empire. The queftion then will be, what fyftem
may be moft proper, not only for the future government
of India, but for connefling with its profperity, induce-
ments fufBcicnt to call forth the induftry of our artizans
and manufacturers, the confidence of our merchants and
a liberal fpirit of general commerce ?

and not clog- The Public, no doubt, will have difficulties to furmount ia

gfj Willi fpc-

cuiaiions. folving this queftion, from political fpeculators who may be
intercfted in thcdecifionforor againft the continuance of the
Charter to the Company ; thefc fpeculators may run into the
extremes of reafoning on commerce and on revenue. On
the one hand, it will be aflcrted, that the idea of profits from

abroad

AND TRADE IN THE EAST INDIES. 27

abroad and general trade to India, is chimerical, fince the
greateft profpcrity of that trade has been owing, not only to
the relation which it bears to the Indian revenues, but to the
confidence which the natives, both of India and of China,
have long had in the knowledge and commercial honor of the
prefcnt India Company ; and that if the trade fliould be open-
ed to new focieties or to iiadividuals, the information of nei-
ther refpe6ling it, nor their credit would be equal to the un-
dertaking. And hence a danger would be incurred not only of
reducing the home revenues of cufloms and duties, which
the Public are daily receiving from the Company's imports,
but of throwing the trade into the hands of foreign and
rival European nations.

On the other hand, it may be maintained, that though
the territorial revenues are great, yet that their value is di-
minilTied to the nation, under the pretext of large inci-
dental expenfes in the different civil and military efta-
blifliments, by mifmanagcment in the purchafe of in-
veftments, and the manner of conducing the trade; and
that although a furplus is held out, the debts of the Com-
pany are flill immenfe and mufl remain fo, till fuch time
as the revenues of the Indian provinces become entirely a
part of the refources of the Public, and be annually ad-
jufled by Parliament.

To obviate the imprefllons that may thus be attempted
to be made upon the minds of the Pubhc, and to enable

E a them

IKTROD.

OF THE BRITISH GOVERNMENT

I\TROD.
' . *

Menus al-
reaJy poflcfl"-
eJ b. the
Public for
examining
ihe fubjcd.

tncm to form a jufl: idea on the fubjeft, they have the in-
formation, which for a ferics of years has been gradually
brought before them, together with the experience of the
feveral meafurcs which have been a6lually adopted for the
government of India, and of the benefits which have ac-
crued to the Nation from the Company's trade.

Parliament has employed fuccefTive Committees, as
has already been mentioned, to invcftigate the true date of
the different branches of our Indian affairs, and the refults,
in the form of Reports, have long been open to infpection
and examination. His Majefly's Commiffioners for Indian
affairs have annually laid before Parliament, accounts of
the revenues, expenfes and ftanding debts of the Com-
pany : in dating the particulars of which, not only the public
documents officially communicated by the Directors, have
been refted on, but every information which could be de-
rived from the local knowledge of men of ability and in-
tegrity has been procured and brought forward.

Further in-
formation re-
quired, to
enable the
Public to
i'ultil its in-
tentions re-
fpccling In-
dia.

Notwithstanding the inferences which have been
drawn from thefe materials, and the general information
they contain, the liberal views of the Britilh nation refpecSt-
ing their Indian poffcflions require a variety of particulars
to be more minutely enquired into, before it will be poflible
to realize the whole into a fyllem.

The

AND TRADE IN THE EAST INDIES.

Tim prevailing opinions rcfpecting the future govern- introd.
ment of India and regulation of trade to the Eafl-Indies,
feem to meet in the following defcription. —

— That a fyflem (hoiild be formed, which fhall pre-
ferve as much as poffibly can be done, their inftitutions
and laws to the natives of Hindooflan and attemper them
with the mild fpirit of the Britilh government :

— That this fyftem fliould veil in the (late its jufl
rights of fovcreignty over our territorial poffeiTions in India,
of fuperintcnding and controling all matters of a financial,
civil and military nature :

—That it lliould preferve the trade to the Company, in
all its branches, but give to the executive government a
proper authority to regulate their proceedings, bounded by
a pofitive refponfibility to Parliament.

In order to facilitate the accomplilTiment of thefe impor-
tant purpofcs, it may be proper fhortly to ftate the leading
fafts and events in the hiftory of the countries in which the
Britilh fettlements in India have been eftablhhcd, together
with the principal occurrences which have taken place in
the countries connedted with the Company's trade to the
Eaft-Indies and to fubjoin to the whole a fuccincSl view of
the changes which the trade of the Eaft-India Company
has experienced.

The

OF THE BRITISH GOVERNMENT

INTROn.

' — . — '

The leading
events ill the
hillor)' of
Hinduoilun.

The tuft of thcfc fubjciSls will bring forward the real
fcenes in which we have been engaged, whether in arms,
in politics, or in trade ; — the fccond, thofe in which we have
been engaged in trade only, — while the laft will lay open
the progrclhve fituation of the greateft trading aflbciation in
the world. Upon fuch foundations the Public will be
enabled to examine the plans, which have been at different
times under confideration, for the government and regula-
tion of the Britifli intcrcfts in the Eaft, and to compare them
with the fyftem afterwards to be fubmitted to their candor
and judgment.

Two leading events will explain to us the chronology
of India, in the prefent relation which that country bears
to Great Britain, viz. The fall of the Mogul Empire; The
Company becoming one of the powers that arofe out of its
ruins; and, poflcfling, for upwards of thirty years, pro-
vinces yielding a revenue fubfcrvient to the purchafe of
inveftments for carrying on their trade.

The Peninfula of India was, anciently divided among
a number of independent fovereigns or ftates. The inhabi-
tants, at that time, were in the ftage of civilization, when
wars are undertaken for plunder, — not with the object of
making permanent conquefts. The natural indolence of the
Hindoos, and the fuperftitious prejudices by which they
have been guided, have rendered them an eafy prey to a
fucceflion of invaders. The firft inroads of the Moguls
were temporary ;— by degrees, they fixed their power, and
s became

AND TRADE IN THE EAST INDIES.

became fovereigns. The eftabllfhment of their empire was introd.
owing to the accidental talents and fuccefs of a few ambi-
tious and able leaders, who reduced many of the Soubahs to
the ftate of conquered provinces.

The means by which thefe diftritSls were fubdued, as
well as kept in fubje<5lion were arms, attended with the
vicious propenfity of promulgating a barbarous fuperflition,
and with the relentlefs fury of perfecution.

When the Mogul Empire was at lafl: eftablilTied, thefe
calamities, inftead of terminating, were again preparing to
break out, and with greater horrors. There was no right
of fucceflion among the fons of an Emperor, but that of one
of them poflefling fuperior talents^ for war and political in-
trigue. He flopped only, with the murder or imprifonment
of all, who had, or could have been his rivals: fcarcely,
however, was he feated on the throne, when the fame tra-
gical fcenes were to be a6led anew. His Tons, as they rofe
to manhood, were to become commanJcrs of armies and
governors of provinces; and then to turn tl:ie force of the
one, and the wealth of the other, into inftruments of new
rebellion. Hence the Emperor was frequently imprifoned,
or murdered, and his family fell before that one of his
defcendants, who was the fuccefsful ufurper.

AuRUNGZEBE, was the lafl of the great Mogul monarchs.
Adventurers, who had been firfl Haves, or foldiers of for-
tune, and then governors of provinces, raifed armies and

made

32 OF THE BRITISH GOVERNMENT

IXTROD. made themfelves independent princes : became rivals to
each other, and in the end, called in the Perfian and Tar-
t?ar plunderers, overturned the power of their Sovereign,
and were thcml'clves, in fucceffion, dethroned, afTaflinated,
and fuccccdcd by their murderers.

By thefe caufes the unwieldly Empire of the Moguls fell;
and Hindooftan, reduced by perpetual civil wars, to per-
petual miferics, prefented only a Icene of political anarchy

In viewing India, from the fall of the Mogul Empire to
the eftablilhment of the territorial power of Great-Britain
in the Eaft ; events only, which, after fuch a revolution,
might naturally have been expected, will be found to have
taken place, unlefs it was the fingular one, of a commercial
Company, having become a fovereign power. The fitu-
ation, however, of the ufurpers in the different provinces,
opens to view the fources of this political wonder.

These new Sovereigns, or their families, continued to
reign wdiiie talents and resources continued to them, or
till fome new adventurer found opportunities and means
to dethrone them. But the name of the Emperor was
ftill in the defcendants oiJiinur, and their unavailing phir-
maunds were given to thole who could purchafe or com-
mand them.

Many of the new ufurpers either had real or forged

phirmaunds ; for the Mahomcdan inhabitants flill retained

* that

AND TRADE IN THE EAST INDIES.

thatveneration for the name and authority of the Mogul introd.
which prejudices had taught them, and which arms found
it difficult to cxtinguiili.

Amid thefe revolutions, the defcendants of the ancient
Hindoos retained, and had, from fufferings, as well as re-
ligious prejudices, a deep rooted hatred againft the Moguls.
They had, even during the vigor of the Mogul Empire,
aficrted degrees of their power, particularly in the pro-
vinces of Moultan, the feat of the Rajpoots; and, in
the inacceflible parts of the Peninfula. They now began
to entertain the hope of recovering their independence,
if not of expelling the conquerors. Under thefe circum-
ftances the Mahrattah empire was formed. The enterpriz-
ing fpirit of Sevajee, and of his immediate fucceflbrs, in a
fliort time extended it over almoft half the Peninfula. The
feeds, how^ever, of new civil wars grew up with their fove-
reignty ; for the officers of the firft Mahrattah Rajahs reduced
the authority of their defcendants to merely a name, which
the prejudices of that people might revere, but which was
rendered as inefficient, as the power of the Mogul had now
become.

It was in this fituation of the Indian nations, that the Eu-
ropean Commercial Companies found their fadories or feats
of trade threatened with ruin, about the middle of the prefent
century ; fome of thefe fa61ories they had obtained from the
Moguls, before the fall of their empire : others, from the firft
ufurpers of the Mogul power. Prefents and new tributes

F w^ere

OF THE BRITISH (GOVERNMENT

iN'TROu. wcicnow to be alnioft daily repeated, to every new ufurper
whole armies required I'upplics, or whofe power could levy
contributions. The force, which had been kept up to
"■uard the failTiories, was of neccflity encreafed. In num-
bers it was infignificant, but in military fkill, it was fuperior
to the native foldicrs.

France, on the Coromandel coaft, was the European
nation which firft faw the impoi tant and valuable acqui-
fitions that might be made by the fuperiority of the Euro-
pean military art, and therefore, began to encreafe its force
at Pondicherry. That nation fcarcely had difcerned this
obje6l, when it became a matter of aflonillimcnt that
fuch a prize had fo long been unnoticed. After a train of
intrigues, and after fome accidental advantages gained over
the numerous armies of the country powers, the French
obtained from them fcveral valuable diftridts, the re-
venues of which defrayed the charges of their European
army. They next levied a few battalions of natives, to be
difciplined in the European art of war, commanded by Eu-
ropean oflicers, and fupported by revenues from their con-
quefts. This meafurc foon gave a decided fuperiority to their
Allies. France thus was admitted to rcprefcnt a branch
of the Mogul empire; and, in a fliort time, became an
Indian Sovereignty.

Had the French, at this period, found no opponent but the
native ftates and princes, the fuperiority of the European
military difcipline would have led them to the fudden ac-

quifition

AND TRADE IN THE EAST INDIES.

qulfition of an empire in the Eaft. Great Britain had, iNTRoa
however, at this important crifis in Indian affairs, troops
in all its fettlements, nearly equal in number to thofe of
France, and commanded by officers, whofe abilities in the
field, and talents for political adventure, may have fometimes
been equalled, but feldom excelled. Thefe officers now
faw the line the rival nation of their country had taken,
and made the India Company fully fenfible, that, the_ac-
quifition of territory was but one of the fchemes of France,
another, and the principal, was the expulfion of the Englilli.

The two nations therefore engaged in the purfuit of the
fame objedf ; and both faw, that the fecurity of their trade
depended on the fuperiority they might obtain in the fields
■of Indian wars and politics. The armies of Great Britain
prevailed, and at the conclufion of the memorable war in
1763, the French power was narrowed to the ancient feats
of their trade, while Britain, whether viewed as one of
the many ufurpers in India, or as having made lawful and
honourable conquefls, found itfelf polTelTed of the prin-
cipal feats of its prefent empire in the Peninfula.

In viewing India from the eftablifhment of the power of
Great Britain, to the prefent time, a very different fcene
prefents itfelf.

The Eafl-India Company, which hitherto could only be con-
fidered as merchants, with the requifite authority over their
fervants, who were ftationed at their feveral factories, now be-

F 2 came

OF THE BRITISH GOVERNMENT

INTROD. came the delegated Governors of rich provinces. Com-
"^ ' rnanJins; an army, equally well app.)inted and as numerous
as that of the mcther country, empowered too to form
alliances in India, provided they ihould not be inconfiftent
^vIch thole which Britain had contracted with the Eu-
ropean nations having interefl jn the Eaft, and pofTefling
from thclc circumftanccs a patronage rich and extenfive,
they became, in fact, a fovercign power, amenable only
to the ftacc, by which they haJ been conftituted and were
protected.

Th-is power, the Company had neither been habituated
to feel, nor trained to exercife. The narrow fyftem, which,
was fitted for the management of their fa6tories, was by-
no means calculated for the government of rich and exten-
five kingdoms. The temptations held out to their firft Go-
vernors and Oificcrs, to intrigue and make war in India,
were irrefiftible ; and the rewards which they obtained
from thcfe fchemes and wars were princely. Hence, the
general bent to bring about revolutions, to become the ally
of a country ix)wcr, and to obtain a part of the territories,
or tributes of its opponent. And hence the political em-
barraflmcnts in which fuch fchemes plunged the affairs of
the Company, as well as the meafurcs of the (late.

The Indian powers, who had experienced the fupei iority
of the European difciplinc, were now determined to copy it.
Men of talents always appear amid the ftruggles of nations.
Hydcr Ally, a loldier of fortune, and the ISIahrattah Chiefs,

AND TRADE IN THE EAST INDIES.

iii a lefler degree, began to adopt the European art of war.
From local fitLiation and from fineile in charaaer, they fooii
became our rivals in arms and in pcjlitics. The former, like
another Hannibal, was determined to extirpate the new maf-
tersof theludian world; and the latter, who had war fof
their national lefource, wilhed equally to crulh *tiis ufurper
and the fli angers.

It was natural for France to take meafurcs for recovering
its power in the Eafl: ; and by intrigues and military aivls to
fecond the efforts of the Indian enemies of the Englilh.

Scarcely had the peace 1763 been proclaimed in Indin,
when the agents of France again wrought themfelves into
influence with Hyder Ally and with the Mahrattahs. This
ambitious court, though it could not yet fee the immediate
means, by which it was to rekindle a war in India, yet was
decilive in its choice of the inflruments to be employed in it.
Hydcr Ally, feconded by his fon, was forming the jilan of
becoming Nabob of the Carnatic, and negotiated with the
French for afliftance to fecure to him a fovereignty, in
which, he flattered them, they were to participate. The
train of negotiations and of wars which followed, were un-
favorable to the Engliih interefts-, and in the imprcflions
which the iflfue of them made upon the native powers of
India, we di:covcr the iources of the general combination,
which they lormed, in connection with Fr,.nce, for extir-
pating the Engliih from the Peninlula. The war and
the negotiations which foUov/cd, though chequered with

^ mif-

INTROD.
, »

r i '

^'^^3a

-8 OF THE BRITISH GOVERNMENT

iN'iROi>. niisfoi tunes, yet ultimately left us in poflelFion of our domi-
nions, loaded, indeed, with a large debt and divided by
jiarties in each of the Prcfulencics, but under circumftances,
which called for tlie interference of I'arliament, and that
led to an arrangement of Indian affairs, to which pofterity
will look back, with approbation.

The idea that the Indians, anterior to the cftablilhment
of the Britiih power, had lived in that golden age, in
which Nature fpontaneoufly dropped her (lore into the
hands of the innocent defencclcis natives, is not lefs fa-
bulous than that all their miferies have arifen from the
■wars, opjucflions and cruelties of the Englilli. This pre-
judice is contradicted by fatls, which evince, that the
provinces acquired by Great Britain and the territories of
its allies have enjoyed a profpcrity formerly unknown in
Hindoollan. The hiftory of that country proves that the
Mogul empire was founded on violence and perfecution ;
that the fpirit of its government was abfolute and oppref-
iive, from its rife to the period of its fall; that the de-
grees of its inftitutions which continued in pradlice among
the new fovcreignties that fprung up out of its ruins, had
an equally oppreflive tendency ; that the tranlmigration of
its effence into the adminiftration of the independent Hin-
doo foVereignties, corrupted their ancient purity and free-
dom ; that the portion of its policy introduced by the con-
querors of the Britiih Indian provinces, was a meafure
diftatcd by a new and unknown fituation : that, in fine,
the gradual manner in which it has been moulded down

into

ANDTRADE IN THE EAST INDIES. 39

into a milder fyftem under the Britilh government, laws in^TROD.
and police, is to be afcribed to the character of a fiee>
though conquering people. The whole of thefe particulars
taken into one broad view, will prepare the Public to judge
of the queftion, " How far th fpirit of our government,
" laws and ufages can be engrafted on Afiatic inftitu-
" tions?"

In the next place, in giving a view of plans which have Of China and
been propoled for the regulation of our Afiatic interefts, iiiandsr' '^
we mufl refer to the Political and Commercial Hiftory of
China, and of the Eaftern Iflands. But in this branch of
the fubje6l, we are not, as yet, pofTcfTed of adequate
documents or evidence. Neither China nor the illands ori
its coafts, to which the Company's limits extend, are, after
all our commercial intercourfe with them,, fufHciently
known to us. The materials for a Hiftory of China are
flill dejiderata in the annals of nations. We know little
more of this fingular people, than what the mutilated re-
ports of mifllonaries and voyagers furnilli. The records of
the Company's conne6lions with China, in few inftanccs,
go beyond the accounts of their {hipping, profits and lofles
of trade. The embaffies of the Mogul and of the Per-
fian monarchs which have been fent to China for the pur-
pofe of opening a political and commercial communication
with that empire, have proved as unfucCefsful In their r.e-
gociations, as ihofe from the European commercial ftates
have been unfortunate. When, indeed, it is confidcred,
that the vicinity of the Mogul empire to China rendered

. ' cautioa

40 OF THE BRITISH GOVERNMENT

iSTRon. caution a ncccfTarv principle with tlie Chincfe, and that
the bullion anJ exports of the European nations placed them
in the inferior rank of merchants, though able, from their
naval power, to diftrefs the coafls and ihipping of China,
■we Icarcely can be furprifed, that this I'ecluded nation, con.
fcious, perhaps, of the fuperiority of the Grangers, em-
braced the narrow policy of prohibiting them from an eafy,
or an open intercourfc in their country.

It was not till Great Britain found it expedient, in con-
fequcnce of the enlarged trade to China, to open a
more extenfive commerce from its Afiatic dominions to
that empire, that it projedled the plan of a political com-
munication with China. The fituation and refources of
that country, made the Company and the executive power
equally anxious to try, whether it was pra6licable to open
new markets for Britilh produce in the interior of it, or to
obtain imports from it on cafier and more liberal terms. The
death of the firft honourable conductor of this fchemc cut
off the profpedt, for a time ; but the progrcfTive fpirit of
our improvements has again pointed out the propriety of
the fame experiment to the nation. Till the refult Ihall
be known, we muft limit our obfervations on the plans
for the China trade, to what the experience of the Eaft_
India Company can afford us. Should the prefent effort
lucceed, we may then hope to unfold the nature of the
Chincfe government and commercial refources, and be able
to decide how far that country may become a field, in which

the

AND TRADE IN THE EAST INDIES. 41

the commercial induftry of the Britifli nation can reap its Jntr od.
reward.

If we are better informed refpe6ling the Eaftern iflands
conne<5lcd with China, in confequence of our own and
the intercourfe of the Dutch with them ; and if fince
the pafling of the commutation a6t, we have acquired
the greateft part of the trade between Europe and China ;
yet ftill we are to learn what is the political and com-
mercial relation fubfifting between thefe iflands and China,
and, of courfe, what the value of both may be in our
Afiatic concerns. In bringing forward, therefore, this
branch of a plan, for the regulation of the trade to the
Eaft-Indies, we muft proceed on the Company's Records
alone, till the evidence fhall be obtained upon which a
fyftem for it can be rendered more perfe6t.

In the third place, we mult, in examining former fchemes, pf, the Rail-

^ ' - ^ ' India Com-

and in fuggefl:ing a plan for the future management or pany;
Indian affairs, refer to the leading events in the hiflory
of the Eafl:-India Company, in order to form practicable
regulations for the continuance and improvement of our
trade. The Company affumed different afpe6ts at dif-
ferent periods. Our firft traders to the Eaft-Indies were
only an affociation of adventurers, each depending for
his credit upon his own Itoclc. From the ftrugglc which
they had to maintain againft the other European com-
panies, they were foon obliged to combine the ftocks
of individuals to fupport their credit as a Company.

G Scarcely

42 OF THE BRITISH GOVERNMENT

iNTRon. Scarcely had tliis effort been maJc, when they were em-
bar raffed by opponents at home, more dangerous thanthofe
abroad againfl whom they had united. Licences were
granted by the Crown to individuals, and a new affo-
ciation was authorized to trade within the London Com-
pany's limits. At length, after a variety of political and
legal difcuffions, the important event of the union of the
two Engl ilh Companies took place. From this period the
commerce of Great ]5ritain to the Eaft-Indies, was con-
duclcd on nearly the fame footing with that of the
Dutch ; that is, exporting treafure and manufa6tured pro-
duce, and importing, either dire6lly from India or China,
or circuitoufly from the former and the latter country,
Afiatic produce for the Europe market. The dominions
which the Company afterwards acquired, in India, arofe
not from any defire of conqueft, but from the neccfiity
their fervants were under of oppofing the fchemes of
France. The rendering the revenues of thofe territories
fubfcrvient to inveflments was a neceffary confequence
of the acquifitions being made by a commercial Company,
and of the diftance of the Indian provinces from the feat
of government. From this jundure the fcene becomes
new, equally to the hiflorian and to the ceconomift ;
to the hiflorian if he is to explain the political fituation
of the provinces from which a- revenue was drawn that
was to purchafe the inveflment for China or for Eu-
rope ; to the oeconomifl, if he is to examine the pro-
greffive effedts of this new fyftem of trade upon our
manufactures and domeflic credit.

4 IX

AND TRADE IN THE EAST INDIES. 43

It could not be expected cither that the Public or the INTROD.
Legiflature, or even that the Company who managed this
concern, could, at once, become judges of the extent of it.
All men of oblcrvation were fatisfied, that nothing: more
than experiment and regulation were pra6licable. The
Company leaned on the protection of the ftate, and the
flate as it gave this protedion gradually found it ne-
celTary to place Indian affairs under the control of the
executive power, fubje6t to the review of Parliament. In
this way alone the Legiflature (if we decide from expe-
rience) can render the Afiatic dominions and trade of
Great Britain to the Eaft, efficient branches of the Em-
pire and of its refources.

In the laft place, the Public have not yet been in- Hlflon- of the
formed of the plans which, from time to time, have been h!f,"cbecu^
devifed and recommended for the better [rovernment of fo'''"<^J *"<"•

•-' the govcrn-

our Afiatic dominions, and regulation of our trade to ment of bH-
the Eaft-lndies. Before the acquifition of our territories, trade" to 'the
the plan of condu6ting the Eafl India trade was uniform E^^^"'^'"'
all over Europe. Facftories, with a guard to protect them,
and a marine to ferve as convoys to trading vcfTels, or
to balance the naval efforts of the native or European
powers, conftituted the foreign fyltem. The domefbic
iyftem was merely commercial, and a fubje6t only of
parliamentary obfervation, in fo far as it contributed to
the revenues or exigencies of the ftate. After, how-
ever, the Englifli Company had obtained the delegated
ibvereignty of rich provinces in the center of India and

G 2 on

OF THE BRITISH GOVERNMENT

IN'TKOD."'

on the Coromandcl coafl, and while it was grafjMng at
finiilar poflcffions on the Weft of the Pcninfula, its fer-
vants, who had contributed to this aggrandizement of their
country, naturally began to fuggeft plans to their fupe-
riors for the government of thofe dominions and the en-
largement of their trade. Thcfc plans, at firft, proceeded
from the local knowledge of individuals; by degrees they
were extended and reafoned upon by men of (peculation
in Britain : at lafl: they came to be fubjccls of difculTion
in Parliament, and finally the fubjecl of a Bill of Re-
gulation, by which Indian affairs were placed under the
control of the Executive Power. Since that period the
foundations of them have been more minutely examined
by evidence, collcdled from the local information of in-
dividuals, refpecling the political fituation of India, the
fources of its trade, and the practicable means of improving
its revenues.

Rcfcrencej
to thcfc
fources of in-
formation,
the object of
this work,
and a proper
lounJ:uion
for a (yllcm
of Indian af-
fairs.

The review of thefc plans feems to be the proper
foundation upon which to reft a fyftem for the future go-
vernment of our Afiatic dominions and trade to the Eaft-
Indies, and will become the firft obje6l of this work. It
will lead forward to the fecond, or to the outlines of a
plan for thefe national fubjcct", drawn from the re-
cords of the Company, and from the archives of the
ftfttc. In this \\iay we may be able to dcvelope, from
the Hiftory of India and of our commercial conne6tion
with China, not only the fyftem of government and
of trade which our pofTeflions will admit of, but the
5 mode

AND TRADE IN THE EAST INDIES.

mode of engrafting a foreign dependency on the Britifli IKTROD.
conftitution. By fuch an explanation of the plans for
Indian affairs, plaufible or impra6ticable fchemes may
be checked, and the attention of the Pubhc fixed on
. the only foundations upon which a fyflem for India
affairs feems to reft. With this preparatory information,
the Public will be afhfted in examining and deciding upon
the greateft queftion, in commercial and political oecono-
my, that has occurred in the annals of civil fociety.

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH I N D I A, &c.

P x\ R T I.

HISTORICAL VIEW OF THE PLANS WHICH HAVE BEEN OFFERED
FOR THE GOVERNMENT OF THE ASIATIC TERRITORIES OF
GREAT BRITAIN, AND REGULATION OF TRADE TO THE
EAST-INDIES; WITH THE POLITICAL AND COMMERCIAL
PRINCIPLES WHICH SEEM NECESSARY TO BE RECOLLECTED
IN FORMING A PLAN FOR THE FUTURE ADMINISTRATION
OF INDIAN AFFAIRS

CHAP. I.

REVIEW OF THE PLANS WHICH WERE SUGGESTED FOR THE
GvOVERNMENT OF THE ASIATIC TERRITORIES OF GREAT
BRITAIN, AND REGULATION OF TRADE TO THE EAST-
INDIES, PREVIOUS TO THE ESTABLISHMENT OF THE BOARD
OF COMMISSIONERS FOR THE AFFAIRS OF INDIA.

CONTENTS.

General ^cjlion refpetlhig the Go'vernment of India, and
Trade to the Eajt-Tudies ', — Difficulties and Prejudices arifmg

from the Novelty of the Subject ; — progrejfive Views of it
taken by the Public ; — general Objects of the frft PLms re-

fpecting it. — Reajonings of the Company upon thfe Plans;— '
of the La\v}'ers ; — of the Political Oeconomifts. — General
Source of thefe Plans. — The Plan of Lord Clive, the firfi and
tnofl interejling of them. — His Ideas rejpeciing the Caufes of
the Anarchy which prevailed in the Britifj Pofficjfions in the
TLaji. — ^efion, arifng out of his Examination of them. — His
Notion of the Home Syflem for Indian Ji fairs. — His Notion of

the

4S OF THE BRITISH GOVE PvNMENT

il-e Foreign Syjiem for Indian Affairs. — His Reafons for re-
commending thefe Syjlems \—for increajing the Stock and fixing
the Dividends on it ;—foT recruiting the Army,— for efa-
hliping a Naval Force in India^ equal to the Defence of
our Ut t lenient s ', — Political Meafures of the French in India.
His Idea of fccuring to Great Britain, the Balance of Power
in India. — His Opinion on the Lnprovements competent in the
Judicial Power — Inferences from this revieiv of Lord dive's
Plans, — refpecling the Revenues and Trade, — refpeSliiig the
Peculations, l£c. in India; — refpecling the Refources and the
Alliances required for the Company, — refpeEling a Naval
Force in India \-^refpecting the Military Power in India; —
refpecting a Judicial Power in India. — I^he Defects in the
Home Syfem of Indian Affairs, the Source of Corruption in
the foreign Adminflration of them ; and this, in its Turn,
the Source of the numerous and oppofite Plans for 7iew model-
ling and improving the Whole — Thefe Plans reduced to the
Form of a Digefi, by Mr. hijid; and the Subflance of them
fated under a Succejfion of ^tefions. i . Sluejlions, — Upon
what Political Principles can the Indian Provinces
be held by Great Britain ? — Opinion of Mr. Francis. —
Opinion of Mr. Chambers. — Objections to this lafi Opinion, by
Mr. Francis. — Opinion of Sir Elijah Impey. Remarks of Mr.

Lind

AND TRADE IN THE EAST INDIES.

Lind upon the J J ''hole of thefe Opinions. 2. ^lejiion, — In
whom is to be vefted the executive Power in India ? —
Opinion of Mr. Chambers. — Opinion of Sir John Clwcering. —
Remarks by Mr. Lind upon thefe Opinio7is. 3. ^ejlion. Un-
der what Relhictions is the Power of fubordinate
Legiflation to be exercifed? Opinion of Air. Chambers;
—Opinion of Mr. Hafings ; — Opinion of Sir Elijah Impey ;
— Mr. hind's Obfervations on thefe Opinions. 4. ^cflion^
Under what Title, and in what Manner ought the Ter-
ritorial Revenues to be collc6led ? Hiftorical Fa^s
upon which Air. Francis and General Clavering formed
their Opinions ; — Remedies propofed by them ; — Opinion of Air.
Hajlings ; — Obfervations of Air. Francis on it ; — Obfervations of
Mr. Lind on the Whole. 5. ^eflioti. How are the other
Revenues to be collected ? Opinion of Mr. Ha!iings\ — Ob-
jedlion to it, by Sir John Clavering ; — State of Alonopolies in
the Bengal Provinces at this Time ; — Air. Lind's Remarks on
fhis Subject. 6. Sluefiion, By what Courts ought the Judi-
cial Power to be admlniftcred in the Britilh Provinces in
India ? Opinions of Mr. Hafings and of Air. Barwell ; — Opinions
of Mr. Francis and of General Clavering ; — Air. Hafings\ SyHem
of Civil Jurifdiclion, founded on his Plan of Government of
1772 ; — his Syfem of Criminal JurifdiSlion on the fame Bafis ; —
of Police for Calcutta ; — Improvements on both propofed by
Sir Elijah Impey ; — his attempt to reconcile thefe Sj,fems to each
other ; — oppofte Syjlems of Sir John Clavering, Air. Francis,
and Colofiel Alonfon ; — Opinion of Mr. Lind, on the Whole of
thefe Syfems of Jurifdiclion and of Government. Principles
upon which Mr. Hafings and Air. Barivell formed their Plans

H of

OF THE BRITISH GOVERNMENT

of Government and Jurifiii^ion ; — Sir Elijah Impeys Bill
founded on them \ — Inferences fuggeded by the IVhole of theft
Opinions and Syjlenis ; — tending to fix our Notions of the Govern-
ment ftti ted to Brilif) India ; — tending to fix our Notions re-
fpecling the Rights of Great Britain to its Afiatic Provinces \ —
tending to fi< the Kind of Jurifdiction required in them.
Air. Dundas's Bill, propofed in 1783. — 'The part of it which
regarded the Syfiem of Government fuited to our Poffejfions in
India ; — the part of it which rciy.rded the Situation in which
the Natives were to be placed under the Britifj Government ; —
the part of it which regarded the immediate Settlement of the
reciprocal Claims of the Company and of the Native Powers, on
each other : — general Tendency of this propofed Bill. Mr. Fox's
Bills propofed in 1783. — His propofition which regarded the Ar-
rangement of the Domefiic Affairs of the Company ; — Objections
made by the Eafi- India Company againfl its pajjing into a
Law ; — His Propofition ^vhich regarded the Arrangement
of the Foreign Affairs of the Company ; — Objedlions made by
the Eafi- India Company againfl its pafiing into a Law\
— F^ffect of thefe Objections upon the public Opinion. Mr. Pitt's
Bill propofed in 1784. Objections made againfl its paffing
into a Law ; — Anfwers made to them ; — Effect of the IVhole on
the public Opinion,

AFTER

ANDTRADEINTHEEASTINDIES. 51

CHAP. I.

N . •

jf\. F T E R the Eafl-India Company had become delegated
fovereiirns in Hindooftan, their traniadlions, in this new ^

° _ _ General que-

charadler, were made fubjccls of parliamentary attention iVion rcipca-

and enquiry, and the queftion prefented itfelf to the Public, veniment of

Upon %vhat plan ought the BritiJJj pojfelJions in India and trade to ,,'.jde'tu'tiie

the Eaji- Indies to be condu5ledf E^ft-Indies.

The novelty of the event of a Company of merchants ad- Difficulties
miniflering the political and financial interefts of rich and dices'^anii'ng
extenfive provinces, and of being vefted with a portion of the ^1°^, ol"the°"
executive power of the ftate, was a circumflance, in itfelf, f^bjca.
fufficient to render any anfwers, which could at that time be
given, vague and unfatisfaclory. The hiflory of Hindooftan,
in which the provinces were fituated, was, at this juncture,
new to the moft intelligent of the Company's fervants.
In England, little more of it was known than the Names
of a few of the late Emperors, or thofe of the ufurpers, who
were erroneoufly confidered to be native Princes, with ri^^hts,
which had defcended to them from the moft remote anti-
quity. The hiftory of the Eaft-India Company was, al-
moft, as little known, as that of the countries to which
their fliips had reforted : — the Public had been attentive
only to the fums which they could pay on the renewal of

H 2 t heir

52 OF THE BRITISH GOVERNMENT

CHAP, i.^ their exclufive privileges ; or to the duties, which their
trade had yielded, as one of the national refources. All
men, however, were flruck with the magnitude of their
acquifitions, and thofc who beheld, only, the great for-
tunes, which their fervants brought to Europe, comparing
them with their own narrow pofleflions, liftened with pre-
judice and credulity to the magnified accounts, which were
publilhcd of their injufticc, violence, and depredations.
Though the Englifli nation may fometimes be deceived,
and, from the love of Juflice by which it is diftinguilhed,
be too hafly in vindicating its national honor ; a little time
foon brings forward facts and events, to its notice, and,
upon them, it uniformly has decided, with dilcernment
and with equity.

Progreffivc In no inflauce has this national chara6ler been more

taken by 'the ^""'^^y iHuftfatcd than in the opinions which have been
Pubiu:. formed, fliiftcd from, and new modelled upon the fubje6t

of Indian affairs. At firft, the Public called for the pu-
nifliment of Indian delinquents, but ftarted back from the
infliction of it, till evidence could be obtained. It then
called for plans of regulation ; but foon difcovered, that
unlefs the rule was adapted to the cafe, the wifdom, or
apparent comprchenfivencfs of it wrs of no value. It next
liftened to fpeculations on the good and bad eftccls of
cxclufive privileges of trade ; but, after examining them,
difcovered that the authors had been reafoning about a few
fafts, in ftead of coUeding the evidence from which a folid

judgment upon the fubjeft could be deduced.

The

ANDTRADEINTHEEASTINDIES. 53

The general review of the hiftory of India, and of the CHAP. i.
Eaft-India Company, with which this work has been in-
troduced, is fufficient to fhew the gradual manner in which
opinions upon this great national fubjc6l have been formed,
and to put the Public on their guard againft adopting ralh
or improvident fchemes in the future regulation of it.

In order to fimplify the fubject of Indian affairs, it Genevafob-
will be of advantage to confider the plans and opinions plans refpedl.
which have been propofed or recommended for the '"^"'
management of them, both by referring to the fpecific
objects of each plan and fcheme, and to the chronological
fucceffion in which they have been fubmitted to the Pub-
lic, or to the executive Power.

The two great objects of confideration in the mofl early
period of the enquiry were, — The rights of the Company,
and the rights of the State. The proprietors and fervants
of the Company naturally reafoned with a view to efta-
bliili the former ; the lawyers and political osconomiRs,
to afcertain the latter.

The Company reafoned, that the territories were an ac- Rdfonings
ceflbryto their trade; that they had an exclufive right to pany^upoT
them, during the term of their Charter ; that the irregu- ^'"'^'^ i'^""S'
larities which had prevailed among their fervants, in IndJ;i»
were nothing more than what the fuddcnnei's of the con-
quefl:, and the want of a fyftem for governing the pro-
vinces

OF THE BRITISH GOVERNMENT

CHAP. I. vinccs had produced ; that witli time and experience, and
further powers from the (tare, thcle evils would be re-
medied ; and that the Company had a right to expect,
from tlie Hate, further powers t > goveru a country which
they had added to the Britilh empire.

—of the The Lawyers, in general, on the other hand, argued, that

when Subjects accpne territories in a war, they acquire them
for the ftate ; that to fuppofe our Indian pofleflions to be an
^cc<^ory of the trade, \^as reafoning from the principles of
municipal law on a cafe that could only be examined on
thofe of the law of nations ; and that even fuppofing the
right of the Company to the produce of their territories to
be a perfe6t one, flill the confcquence could not be, that
the ftate was not to interfere in the adminiftration of a
dependency of the empire. Oppofite pofitions to thefe were
laid down by the Lawyers of the Company ; who held, that
the territories having been acquired under the Charter giving
an exclufive privilege, belonged to the Company. The only
inference which can be drawn from the perufal of thefe
voluminous difputes is, that the event has given the right
of adminiftration to the ftate, and left the territories to
the Comj)any, with the charges of maintaining them during
the period of their exclufive privilege.

r.fthc oUti- '^"^' rcafonings of the political oeconomifts, tended, ge-

r;>i cctuno- nerally, to cllablilh the right of the ftate to participate in

the profits of our Indian pofTefllons, and the propriety or

impropriety of continuing the exclufive privileges of the

Com-

AND TRADE IN THE EAST INDIES. 55

Company. Two circumftances, at this jun6lui"e, render the chap, i.^
reafonings of this clafs of writers uninterefting to us. hi
the firfl: place, the queftion is not now, whether the Public
have a right to difpofe of theur Indian poflcfTions and trade ^
but whether it will be expedient to continue the exclufive
privilege to the Company, or not. In the fecond place,
the reafonings themfelves are fo warped with the prejudices
of the times in which they were offered, that to bring them
forward to notice now, would tend only to revive an un-
neceflary and ufclefs difcuffion.

While Parliament were employed in enquiries into the General
adual ftate of the Britilh interefts in the Eaft-Indies, a va- JZ'""^'^'*^
riety of plans were brought forward and fubmitted to the
confideration of Government. Some of them came from
the fervants of the Company who had been a6live in ac-
quiring our Afiatic pofTeffions ; others of them were fug-
gefled by men of political knowledge, in Europe, with
the objcdt rather of difcuffmg particular points, than of
eftablilliing a general fyflem.

The following plan has been afcrlbed to Lord Clive ; The plan of
and the review of it will afford fatisfa^toiy information of the' firit'a^'d
the prevailinc: opinions, at the time when Parliament were f"°^ inteiciu

. , : . . . ing of them.

carrying on their enquiries to difcover the value of our In-
dian poffeffions, and when they were deliberating M'hether
this, diftinguillied conqueror was to receive the ccnfures
or the thanks of his country*.

*■ This Mitnufcript is dated the 24th of November, 1772.

3 His-

56 OF THE BRITISH COVER >:ME NT

CHAP. I. His Lordfliip fcts out with obferving, that the fituation of

His idcns ic- thc Eaft-lndia Company's afFau's, had become fo involved, as

fomcc^oi'lhe ^° ^""^^^ awakened the attention of the miniftcis of the

aniirchy Kiurr excitcd fear and defnondency in thc Proprietors and

ubich pre- . ^ ' . ■' ^

vaiicJ in thc DirecStors, and a general alarm in the Public. The whole
iHit.sin'thc ' diftrcfs, however, he confiders to have arifen from the
^'''^' improvident participation of the Duannce revenues between

the Public and the Company. With the view of illuflrating
this fource of confufion, he compares the ftate of the Com-
pany before they became pofielTcd of the territories in India,
with what it was in 1772. The refult of the comparifon,
his Lordfliip concludes, would be thc cftablilhment of the
following fadts :

I ft. That from their not having a place of fecurity in In-
dia, and a military force not exceeding one thoufand Euro-
peans, the civil fervants of the Company, including thofe
who had licences to remain in India, were encreafed to about
two thoufand ; the mihtary fervants (black and white) about
fixty-five thoufand, of which number nearly ten thoufand
were Europeans. That the Britilli pofTeflions were more
extenfive than the kingdoms of France and Spain united ;
that the inhabitants, who might be termed Britilh fubje6ls,
amounted to about twenty millions; and the revenue was
little Iliort of fix millions ftcrling.

2d. That thc qualification to vote, w^as then* too fmall,
being only ^500 flock. That exertions had been made by
the Dircclors, beyond their a6lual wealth, to purchafe

votes. That thc fervants of the Company had often re-
turned

6 * Th.1t is, in 177^.

AND TRADE IN THE EAST INDIES.

turned with fortunes, to obtain protcaion by purchafing CHAP. i.
votes in the Court of Proprietors— That thefe votes were at
the difpofal of the Directors, Avho, in return, abfolved their
fervants from the charges brought againft their condu6t,
and fent them back to new places of trufl: in India.

3d. That the principal fervants of the Company abroad,
had entruftcd the management of the revenue to junior
fervants; who, in their turn, had afligned this duty to
black agents : hence general extortion on the one hand,
and the fradulent receipt of money on the other.

4th. That the expenfes of fortifications, cantonments,
and, indeed, of ev^ry thing which regarded the army, had
been abfurdly extravagant.

Upon thefe grounds Lord Clive ftated the following ge- Q_ucftion a-
neral queflion : Can the Charters which were granted for the !?;'!"1.°^!L°^
guidance of a Umited Company of Merchants, be adequate to the ^'^" "' ''^'^'"•
government of an extenfve empire ? After deciding, in the moft
pofitivc terms, on the inefficiency of them, he propofcs
the following new fyftem for Indian affairs, both at home
and abroad.

The home fyftem to be as follows : The Dne6lors to be f*" notion of

r . , J . . „ ^ the home fv(-

twenty-rour in number, and to continue in ottice, ieven, temforiucLn
five, or, at leaft, three years ; the falary of the Chairman to
be jT. 1560 per annum; that of the Deputy, jT-iooo per
annum ; that of each Diredtor, f.yso ; but that no pcrfon,
being a member of the Court of Directors, fliould have any
other gratification, and (liould be declared incapable of buying
or felling India (lock, while holding this truft. The quali-

I ficatiou

53 OF THE BRITISH GOVERNMENT

CHAP. I. fication of a voter to be ^.i coo ftock held by him, as his on-n
property, for fix months. In the event of a vacancy, ia
the office of Dire(5lor, it ought to be filled up by the Court.
When the general elcdVion of Direflors ihould happen,
the Proprietors ou2:ht to chufc a new lett, and not to have
the power of continuing any of the former Diredlors in ofiice.
The Proprietors ought not to have the power of difmifllng
tiny Director, after his firft nomination, without the content
of Parliament.

His notion of The foreign fyftem Lord Clive recommended to be as
fyftera fcH"in. follows : Tlic Court of Dire6tors to have abfolutc power
dian affairs, ^^.gj. j-j^cir civil and military fervants abroad. The Court
of Proprietors to have a coiitrouling power over the receipts
and difburfements at the different prefidencies. The Court of
Directors to have the right of forming, from their own num-
ber, a fecret committee, confi fling of the Chairman, Deputy
Chairman, and three DireiStors, for the adminiftration of
political and military affairs only. The Committee of Cor-
refpondence to be diminillied, being too numerous to be en-
truftcd with the fecrets of adminiftration. The firft nomina-
tion of the twenty-four Directors to be in the King or Parli-
ament; but all future nominations to be in the Proprietors.
The Governor-general of Bengal to have ;/C20,ooo per ann.
falary, and alio the expenfes of his table, and enfigns of ho-
nor, defrayed. The members of Council to have each ^Ti 0,000
falary, and ^^5°°° P^^ annum for the expenfes of
their table, and other incidents. Bengal to be the ftation of
the Governor General and Supreme Council, and all orders
from it to the other prefidencies and councils to be implicitly
obeyed, unlefs countermanded by fpecial orders from the

♦ Court

AND TRADE IN THE EAST INDIES.

Court of Directors. The mode of reformation, by temporary
fupervifors, (he obferves) having been found inexpedient, the
rank of the Governor-general and Supreme Council ought to
be fixed, to prevent thefnbordinate Prefidencies from acting
with any other object, than for the prefervation of Ben-
gal, the center of the Britifh dominions, in India. The
commercial affairs, in India, to be placed under a council
of eight, in which the Governor-general, or a member of
the Supreme Council, ought always to prefide. The fala-
ries of this council, as well as of all the civil fervants
(writers excepted) and thofe of field-officers, and of fur-
geons of the army, to be fettled by fhares in the fait trade
only.

CHAP. I.

Such is the outline of the home and foreign fyftems for In-
dian affairs, propofed by Lord Clivc. With the view of re-
commending them to the Public, he fubjoins fome very in-
terefting remarks on the fubjc6ls, which, at that time, were
occupying the attention, both of the Company and of Par-
liament. As the fubflance of thefe remarks will throw con-
fiderable light on the early flage of our Indian intercfts,
they may be digefted in the following order :

His realona
for recom-
mending
thefe fyftems.

I. The fubfidiug act of parliament* which bound the Forincreaf-

Company to pay _^4oo,ooo per annum to the Public, at ^'n j a^"; ^°'^''*

the time the propr!ctoi"s were receiving 12,^ per cent, ought the dividend
to be repealed. The dividend ought to be lowered to 9 per
cent, on the public faith being pledged, that Parliament

on It.

* Sec yih -.ind otU Ceo. III.
1 Z

would

6o OF THE BRITISH GOVERNMENT

CHAP. I. would make no claim on the Company fo long as the dividcncl
did not exceed 9 per cent. The lowering of the dividend,
however, Ihould not be fuch as to bring diftrefs on the Pro-
prietors, whofe fortunes might be embarked in India ftock.
The Company ought to be allowed to encreafc their flock
from ;^3, 200,000 to ^^4, 000, 000, and the fubfcribers to.
the new jTSoOjOoo flock to pay jTsoo for every jTioo capital
ftock, which they fubfcribed. The dividend, upon this
new fubfcription, for the firft year, to be lo per cent, but,
after the fir ft year, the new and old ftock to be confoli-
dated, and the dividend on the whole to be 9 per cent,
which would amount to ^("360,000 per annum. In the
fubfcription the prefent ftockholders ought to have the
preference, and in proportion to the ftock which they
held ; — by this meafure, he concludes, that the Company
would always be able to pay a dividend of 9 per cent, and
that a furplus would always accrue, both from the trade
and from the revenue, one-third of which ought to be ap-
plied to difcharge the debts of the Company, and two-thirds
ought to be paid to Government. With the view of
fecuring this laft obje6l, it might be proper, he adds,
that two Directors ftiould be nominated by the King, and
that they ftiould be members of all committees at the In-
dia-houfe, but precluded from filling any of the chairs.
This, on the one hand, (Lord Clive thought) would pre-
vent abufes in the executive Government ; and on the
other, would be more conftitutional than the appointment
of a controuling power on the part of the State.

2. That

AND TRADE IN THE EAST INDIES.

2. That there ought to be a regiment of the Company,
flationed in England, by the authority of an a6l of parha-
ment ; — drafts both of officers and of men might be made
from it, as the fervice required. This eflabhlhmcnt his Lord-
fliip had recommended fo early as 1 764, but the bill intro-
duced into Parliament for that purpole, was rejected in 1770.
Such a corps, he thought, would always afford drafts to
fill up a garrilon of 600 men for Bombay, a ftation of the
ntmofl importance to the Britiili iTiipping. Had the French,
he fays, poflcflcd a retreat for their fhips, in the war 1756,
the ruin of their intcrefls in India might have been averted >
he concludes, 'that Bombay would be the place the moft
open to an attack, if ever France fliould again attempt to-
acquire a fuperiority by fea, in the Eaft-Indies.

CHAP. I.

For recruit-
ing the
mniy ; —

merits.

3. Two-thirds of the Company's fliips fliould be able to for eftabiifh-
carry 70 guns each, or be armJe enjiute', by this meafure they '"s^ naval
would be able to oppofe any fudden attack made by the "^i^. equal to
French, and to defend our fettlements till a reinforcement of our fettle-
fliould come from England. Three fail of the line affiftcd
by eight of tlie French Company's fliips, withftood the at-
tack of Sir George Pocock, with nine fail of the Britifli line.
Thefe 70 gun fliips would be the niofl: proper for convey-
ing men and military flores upon any expedition ; they
would be fufficicntly flrong to take under their convoy the
remaining third, which ought to be continued of the pre-
fent fizc, as fit for the riv^r Hooghly. Should we, at any
time, fays he, allow the French to get the fuperiority at
fea, in the Eafl:-Indics, the confequcnccs would be, the
<• lofi

OF THE BRITISH GOVERNMENT

OHAr. I.

' — . — »

lofs to England of about 66 fail of Eaft-India ftiips, which
ni!2;ht be turned into a marine by our natural enemy, and
thus give France a decided naval and commercial fupe-
riority *. France, befides, he adds, has about 10,000 men
at the iflands, though a garrifon of 600 men would be
equal to the defence of them. This force they have fent
to India in the Qiips armce en flute, each fhip generally,
has 200 afTigned it, but could eafily take in 400, and thus
give them an army of 20,000 Europeans. Pondicherry had
been made almoft impregnable, and if this force iliould
march from it, aflifted by 40,000 native troops, either le-
vied by the French, or obtained from Hyder Ally, they not
only could drive us out of our pofTeffions, but add Hin-
dooftan to the French empire. It has been erroneoufly
luppofed, he fays, that Nadir Shah had left no riches to
be gleaned up by a future conqueror ; for fuch a force as
has now been alluded to, could eafily collect what would
defray the expenfes of a war in India, and leave the
conquerors either to be fovereigns of the Peninfula ; or to
retain the native Princes as their tributaries. That Ame-
rica (his Lordiliip obferves) will, fooner or later, become
independent, there can be no queftion ; and if France fhall
be able fo to dupe Spain as to induce it to give the Americans
afliftance, then France might add to our Eaflern, our Ame-
rican lofs, and reduce us to become an infignificant power

* Lord Clive fuppofcs the Dutch, Danes, Swedes, and Portug-ucfe to Jiarc about
igS iail of trading vcllcls to and in the Eall-Indies, and concUidcs, that they too
would fall a prize to the French, if that power flioulJ be able to drive the Englifti
from the Eail- Indies.

ANDTRADEINTHEEASTINDIES. 6j

in Europe. The ceffion^ indeed, of New Orleans, by chap, i.^
France to Spain, he thought was a meafure obvioufly calcu-
lated to keep up the jealouly between that kingdom and
England ; and was intended to prevent the latter from any
ambitious defigns on South America.

In illuftratlon of thefc ftriking remarks, the following
obfervations and directions, witli refpe6t to the conduct of
Great- B4itain, are fcattered over this irregular but malterly
memoir.

mea-

The late treaty (1763) reftored France to her compfoirs Political
in the fituation they were then in — The diftridt round Pon- ^""^ of the

/ ^ i rench in

dicherry did not yield a revenue of jT. 5000 per annum — The India.
prime coft of all her trade upon the coaft did not exceed
3(^.60,000 per annum; and yet fhe was erecting fortifications
at the expenfe of half a million, and had a garrifon main-
tained at more than the expenfe of all her Indian revenues
and prime coft of her eaftern trade.

The French iflands, he obferves, lie out of the tradt
of cur (liips. Tranfports, with 500 men on board, fteal
out from them without the pofhbiiity of our knowing it,
till they are landed at Pondicherry. France was extending
her fettlements at Madagafcar, and could draw from them
any quantity of provifions. The inference was obvious, that
France was preparing for a vigorous efibrt to recover her fu-
periority in the Carnatic,

IlYDEte

64 OF THE BRITISH GOVERNMENT

CHAP. T. HvDER Ally, he adds, is difrofcd to fecond the vi:\vs of
France, and is in a condition to do fo. Turning then the
eye from Cape Comorin (the fouthern point of Himlooftan)
to Cattack. and Ballaforc, and from this Cape to Nellore,
the fea coaft is fo much under our influence, that there
exifts no power on it capable of giving adiftance to the
French but Hyder Ally. From Nellore to the northern
provinces, which extend as far eaft as Ganjam (the Soubah-
dar of the Deccan excepted) there is no power within 150
miles of the fea able to fecond them. The country of the
Berar Mahrattahs begins on the northward of Ganj?.m, and
ftretches along the coaft to Cattack and Ballaforc, from
whence the Bengal provinces may be entered. The boun-
daries of the Mahrattas extend northward to the Caramnafla,
the limit between us and Sujah Dowlah's country. Through
the whole of this laft fpace, there is no other power .within
600 miles of the fea, from which France could derive ef-
fectual aid.

HisiJcaof If then the objecl of Government is to render the Com-

Grcat"irit!iiii pany's poffefllons permanent, the following political and
the balance of military meafures are obvious. There fliould always be, in

power jn In- •' _ _ ■'

<iia. the treafury of Bengal, ready for any emergency, not lefs

than 100 lacs; and, in that of Madras, not lefs than 50
lacs of rupees, agreeably to the plan of Mr. Verclfb.
Whoever can pay an Indian power has its afllftance.
Hyder Ally {hould be ofllred almoft any terms to de-
tach him from the French intereft, and if he lliall re-
fute to accept of them, we ought to crulh him entirely, and
at all events. A body of the Mahrattahs fhould be taken

into

AND TRADE IN THE EAST INDIES. 65

into pay, (and they can at all times be bought for a fum of S}^^"}^
money) to fccond our plans; this meafure would prevent
the French from obtaining a hold of that intereft. The
condu6t of France, at Pondicherry, fliould be narrowly
watched, to prevent their giving to that place the appear-
ance of fuch confcqnencc to the country powers as might
induce them to prefer an alliance with its pofTefTors to one
with England, and might check the efforts of our rival in
forming Indian alliances. The northern provinces fhould, at
all events, be fecured ; fo that, if the French lliould attempt
to carry the war into the Carnatic, they might not be able
to ufe Hyder Ally as the ladder by which to climb to a
fovereignty in India. With this view, Cattack fliould have
been obtained from the Mahrattahs, and the Englith would
then have pofTeflcd the fea coaft from Bengal to Cape Co-
morin. At all events, the fortifications of Pondicherry Ihould
be kept in fuch a flate as to be at our mercy, the moment
that a war is declared. If this were done, it would be im-
poflible for the French to raife, or difcipline an army of
natives, or to fit out a field train and equipage. If, on the
contrary, Pondicherry be allowed to become fufficiently flrong
to refill us, or if we wait quietly till a war fliould be declared,
and till Hyder Ally can be brought to the affifl:ance of our
enemies, our deflr nation would be inevitable. Should France
ever be able to land a body of Europeans (and the cafe
may be put) fufficient to meet our forces in the Carnatic,
a battle ought always to be avoided. An enemy rendered
defperate, may overcome difficulties that appear infur-
moun table. An enemy, too, that attacks, always fights

K with

f.6 OF THE BRITISH GOVERNMENT

CHAP. I. ^vith more fpirit and refolution than an army that de-
fends, and has the pofTibility of a retreat. If the French were
fuperior in Europeans they ought to be oppofcd by a body of
light infantry, and artillery, and by fuch number of cavalry a»
we could afford to pay ; the main body fhould be perpetually
haraffed ; their detached parties cut off; and death be made
the immediate confequcnce of any of the natives fupplying
them with provifions. However formidable their num-
bers might be, and fupported by whatever fquadron, this
conduifV, on our part, would ncceffarily and foon oblige
them to reimbark. Should France attempt an attack on
Bengal, and even could it land 10,000 men in that
country, unaffifted by the natives, the projedl would be
fuperlative madnefs. If it even were fuppofed that they could
reach Calcutta before the climate had effected their def-
tru6lion ; if they even fhould make themfelves mafters of
that Fort, the Englifh would have the obvious refource of
fending the inhabitants (black and white) up the country,
with their riches and effefts; and, by haraffing the parties
which the French mufl fend out for provifions, could foon
render it impoffible for them to maintain that ftation. To
provide again ft fuch an emergency, however, parties ought
to be ffationed on both fides of the river, at proper diftances
from each other : this would make it impoffible for the
enemy either to furprize us, or to bring us to a general
a6tion. Had Sujah Dowlah, in 1757, purfued this condu6l,
avoided a general adlion, and refufed to conclude a treaty,
neither our army nor our fleet could have remained three
weeks at Calcutta.

4. The

AND TRADE IN THE EAST INDIES. 67

4. The judicial powers exercifed by the Company in chap. i.
their ncAv fettle merits required to be completely new mo- uu opinion
delled. The town of Calcutta, alone, comprehended from proUments
three to four thoufand inhabitants, fiibjeas of the Eaft- C'jr.,pctcnt on
India Company; law-fuits were numerous and endlefs, power.
and condu6led by ignorant, petty-fogging attornies, who
were fcandal to their country, and a difgrace even to
their own profeffion. Numbers of them had been originally
ferjeants in the &rmy, or purfers to fliips ; and yet many
of thefe wretches cleared ;^2ooo per annum by their bufinefs.
To remedy this evil, Lord Clive recommended, that the
Company fhould be authorized to fend out an Attorney-
general, with fome able lawyers, for the purpofe of new
modelling and regulating the courts of juftice. With the
afTiftance of the Governor-general and Council, thefe law-
yers might be directed to form their opinions on the courfe
of juftice proper for our fettlements, and to point out the
defedls, as well as proper remedies, that the Legiflature
might, with proper information, form the whole into a
fyftem. He concludes, with obferving, " that the attempt
" to introduce the EngliiTi laws, throughout our poifef-
" fions, in India, would be abfurdand impradlicable."

On this interefting memoir, confidcred, either, with re- infccmej

ference to the time at which it was written, or to the ^rwotLoi'd

events which have happened fmce that period, the fol- Ciivc's plans,
lowing obfervations rife naturaly to view ; —

K 2 1. The

68 OF THE BRITISH GOVERNMENT

CHAP. I. I. The home fyjlem^ which Lord CHvc propofed, pro-
'•ffpcrtingihe cecdcd fioiTi his convicSlion, that a connexion mufl: be
Revenues and ff^ji^ej bctwccn the Couit of Directors, and the cxecu-
tivc Government ; as the former M'as not competent to the
pohtical meafures which the fafety of our new dominions
required ; and the latter was not qualified for the manage-
ment of the commerce which was torender our acquifitions
profitable to the Public. The revenues, he held, to be fo
interwoven with the credit and trade of the Company, that,
even in their then fituation, it would have been imprafli-
cable to have deprived them of the one, without deftroy-
ing the other ; the Company being the Proprietors, the
Directors ought to be left in the management of theij?
commercial tranfa6lions.

rcfpertingthe 2. The Govemors, Mcmbcrs of Council, and principal fer-

fourccs ol pe-
culation, ijic. vants ihould have fixed allowances, and ought not to be in-

n la, tlulged in perquifites of any kind. It was from their having

certain perquifites, that all the peculations and frauds, in

India, had arifen ; and it was from the independency of one

of the Prefidcncies of the other, that each purfued its own

interefts, and none regarded the intcrefts of their employers.

Hence the anarchy, in India, became general. His opinion,

therefore, of rendering the other Prefidencics dependent on

Bengal, may be confidered as the fourcc of the prcfcnt fyf-

tcm of Indian adminiftration.

icfpeflingthe

rcfourctsand o. Thc mcafurc, which he recommended, of having a

alliances re- . . . '-'

nuirtdforthc luttd HI the trcafuncs of ^Bengal and Madras, equal to any
' exigency,

AND TRADE IN THE EAST INDIES. 6*9

exigency, in India, difcovers to us the fituation of our'fct- CHAP, i.^
tlements, at that period, and his notions of the alliances,
which we ought. to form, and of the enemy we ought to
crulli, almoft feem prophetic of our prefent fituation, and
to be the rudiments of our prefent political fyftem.

4. The plan of rendering the Company's {hips a marine, refpet^ing a

1 1 r r r 1 1 i i • naval force

equal to the repulle or any ludden attack, has in a great iaiudia,
meafure been fmce adopted, by employing lliips of much
larger fize, carrying a fufficient number of guns for defence.

5. The plan of having a corps belonging to the Company, refpcaiag the
in England, was, certainly, at the time, the only pra6ticable powcriniu-
meafure by which recruits could have been procured for '^'

that fervice, and might have prevented the complaints,
which have been frequently made of the deficiencies of our
European corps. Events have fhewn the neceffity of keeping
up a large European force, in India. It might be impof-
fible, from circumllances, to fend reinforcements, at a pro-
per time to fo diftant a poffeflion. It might be lofl beforo
they could arrive. " The minifter, (fays Lord Clive) who.
*' could fee a force colle6ting upon the coaft of France, and
*' yet delay preparations for war, till that country had de-
*' clared it, would be unequal to the truit repofcd in him."

6. The hints thrown out, on the neceffary reformation rcfp?a;n" a.
which ouzht to be made in the courts of iulticc, in Ben- J"*^"-''-'!

o J ' _ _ po-.vcr 111 Iii-

gal, difcover to us, that, however fimple the principle of tiia.
natural juftice may be, and however pKrfedly it may have

been

7°

OF THE BRITISH GOVERNMENT

CHAP. I.

been copied, in the laws of England; yet, it was impracti-
cable, to introduce thofc laws as the mcafures of right and
wrong, in Hindooftan. The laws of that country, as well
as the courts of juftice, proceeded from a government per-
fe6lly oppofite, in its fpirit, to that of England, and the
application of them, had become familiar to the people,
through cuftoms not lefs diflimilar to ours : time has fliewn
us, that wc may improve on, but cannot alter, the Indian
JLirifprudence. Though the laws of Rome furnillied a fine
I'yftem of written jurifprudence, to our anceftors, they
prefered their own common law to this model ; and yet,
the one had fprung from the refined maxims of the Stoics,
and the other, from the military eftablifliments of the
Goths.

The dcfcc'ls
in the home
I'yftcm ot In-
dian ufTuirs,
the fourcc of
corruption in
the foreign
adminiftra-
tion of iheni ;
and this, in
its turn, the
fource of nu-
merous and
oppofite plans
fir new mo-
(iclling and
improTing
tilt whole.

Soon after the Company acquired the fovereignty of the
territories in India, their inability to punilli their Servants
for difobedience of orders, otherwife than by difmifiing them
the fervice, and ordering them to be fent to Europe, rendered
their authority unequal to the prevention of abufes. Under
fucceflive adminiftrations the power was fo divided, by party
fpirit, and perfonal animofities, that little obedience was
paid to the orders of the Dire6lors ; nor was any benefit
derived from the remedies propofed. Scarcely had the fu-
preme power been given to the prefidency of Bengal, and
the fuprcme court of judicature been eftablilhed, when par-
ties, in that fettlcment, took a decided form *. Whatever

was

* Though the parties, in the other councils, were not eqnally violent with thofe
of Bengal during the early period of this new fyftcm for India ; they became fo fome

3 year*

AND TRADE IN THE EAST INDIES".

was propofed by one, was oppofed by the other; we Ihall cii.\i\i.
fuppofe from the bcfl motives ; but, it muft; be allowed,
with the worfl eft'e6ls. Thefe circumflanccs, however,
have had one ufe ; each party was fuggefting plans for the
better government of India, and regulation of our trade
to the Eaft-Indies ; and all were fending them home as
proofs of their zeal in the fervice, and of the local in-
formation which they had acquired. As yet, the know-
ledge of Indian affairs Avas not fufficiently difFufed to
enable thofe who were entitled to judge of them, to pro-
nounce, on what was the beft for the public intereft.

These propofitions have been collected and methodized,
under the feveral queftions which were propoicd to be exa-
mined. We lliall therefore flate thefe queftions, in the order
of the fubjedts, rather than in that of chronology ; fubjoin
the remarks of Mr. Lind, who examined them ;* and compare
the whole with the events, which, fmce that period, have
afforded fuller information of Indian affairs.

Thefe plans
di^cfted, by
Mr,Lind,and
the fiibjcfts
of them ftated
under a fuc-
ceffioii of
{jueftions..

I. On what political principles can Bengal, Bahar, and Orijj'a
be held by Great Britain ?

years afterwards, and thus haftened on the adivc interference of Parliament in in-
troducing a controul of theftate over Indian affairs.

* Mr. Lind, a counfellor at law, was employed to examine thefe plans and opi.
nions, with dircdions to reduce them to order, and to ftatc the rcfultof the whole.

7. Queftiiin,
upon what
political prin-
ciples can the
Indian pro-
vinces he
held by Great
Britain r

72 OF THE BRITISH GOVERNMENT q

cu.w. I. As the Committees of Parliament were, at this iundlure,
carrying on their enquiries to afcertain the value of the
Britilh territorial acquifitions in the Eafl:, and to dilcovcr
the extent of the errors into which the different Governors
and Councils had fallen ; the attention, of all parties, was
turned to the general point of fixing the principles upon
which our eaftern dominions could be rendered efficient
parts of the empire. All the plans agreed in the following
particulars : that the diftiniSlion between Nizamut and
Duannce fliould be abolilhcd ; that there fliould be but
one Supreme Government in the Britilh pofTeffions in India j
that the fovercignty of the flate, over the whole, fliould
be declared; and Bengal, Bahar, and Oriffa made Britifli
provinces. The difference in opinion chiefly arofe on the
mode of afcertaining the claims of tr,e Company upon thefe
provinces. In the difcufTion of this fubje6t the moft op-
pofite opinions were given.

Opinnnof Mr.Francis thought, that the Company, by its con-

" "• '^•'"<^'S' ftitution, was unfit for the exercife of the fovereign power

in the Eaft ; but as it was queftionable how far this power

could be held in the name of the King, it would be better

to keep it in the name of the Company.

Opinion of Mr. CHAMBERS* tliought, that the Company fliould hold

bcrs. "'"' their poffefTions of the King, but not of the Mogul; that,

at the fame time, their engagements with the Mogul (hould

* Now Sir William Chambers.

AND TRADE IN THE EAST INDIES.

be declared to be valid, in a provifo of an Acl of Parliament,
and that a compcnfation fliould be made to the Mogul for
the lofs of the revenue which the Company had ftipulated
to pay to him. If this plan could not be followed, he
was of opinion, that the King might confider the country
as a conquered one, and that the Company had held it in
confequence of an agreement with his Majefty and the Par-
liament. In this cafe, the treaty of the Company with
the Mogul mufl be declared to be founded in error, and
that the nation, as fuch, was not engaged to fulfil this
treaty, nor to pay a tribute for their poflefTions to a foreign
prince. The whole of thefe principles he recommended to
become the fubje6l of parliamentary difcuflion; and, to
facilitate their coming to a decifion upon them, he thought
that the Soubahdar would be contented with fome honorary
diftindlion, and with a pcnfion equal to what he received
from the Company.

CHAP. T.

Francis.

To this propofition Mr. Francis obje6led, that the na- Objections to
tives confidered the Mogul to be their lawful king that we had ^j'^ I'ly Mr!
colleded the revenues and coined the money in his name .
that it was difficult to conceive how he could be diverted
of privileges, acknowledged, in the fubfifting treaties be-
tween him and the Company, unlefs fome negociation fhould
be opened, by which he would agree to cede his rights
to Great Britain ; and the King and Parliament, in return,
to form for him a refpe6table dominion. Thefe opinions
he illuftrates by obfcrving, that though the rank of the
Soubahdar had become titular ; yet, as juftice was admi-

L niftercd

OF THE BRITISH GOVERNMENT

CHAP. I. nldcred in his name, by the Naib-Soubahdar, the rank
mufl ftill be kept up ; that the Company had guaranteed
thefc rights to the late Soubahdar, his heirs and lucceflbrs,
and had flipulated to pay him a penfion of 32 lacs of rupees,
fmce that time reduced to 16 lacs ; that many of the firft
families depended on the Soubahdar and his Naib for their
penfions ; that the Fouzdarry courts comprehended all the
offices in which Muflulmen could be employed. Notwith-
ftanding thcfe remarks he, however, thought that the
fovcrcignty of the King, if declared, would entitle his Ma-
jefty to aflume the Soubahdarry.

Opinion of

SirErijahlm-

pcy.

Sir Elijah Impey propofed vefting all the territories in
the King ; but that the Act fhould have a number of faving
claufcs in favor of the Nizam, the Indian Princes, the fo-
reign factories, &c. &c. which would have left the fo-
vcrcignty as complicated as it found it.

Aions.

Remnrks of UpoN thcfc oppofite opinious Mr. Lind makes the follow-
on'^'th^'"vhX ing obfervations : That as, by the conftitution of Great
of thefe opi- jgiitain, the territories bclono-ed to the crown, the preamble
to the bill fhould flate the claims of the Company, and of
the native princes, on the conquered territories ; that the
bill fliould declare the fovereignty to be in the King, and
fpecify the fituation of the natives, who are become our
fubjecls, but not to be governed by the laws of England ;
that it fhould vefl the Governor General with power to
treat with the Mogul for his rights to the provinces, and
grant penfions to the Soubahdar, &c. as compenfations for

the

AND TRADE IN THE EAST INDIES. 75

the refcinded treaties between them and the Company ; chap. i.
that the Company fliould funendcr, by a deed in Chancery,
their poffeffions, and former charters; that His Majefly
fliould accept of them, and grant a new charter, conform-
able to the fpirit of the bill, veiling him with the fove-
rcignty ; that the privilege of the exclufive trade fliould be
continued to the Company for fifty years; and that they
fhould be furnilhed with fuch fums for their inveflments
as might be necefTary, upon their giving their bills, pay-
able in England, into the Exchequer, twelve months after
fight. If this fyftem fliould be rcjefted, and the fovereignty
ftill be exercifed, through the medium of the Company,
then, that His Majefly fhould be empowered to grant them
their pofTefTions, for a certain time, and their exclufive
trade, renewable only by Parlimcnt ; in return, that the
Company fliould lend the Public two millions, without in-
tcreft ; that an account of their receipts and difburfements,
in England, fhould be annually laid before Parliament; and
that out of their profits realized, a per centage on their
capital flock of ;r3,2oo>oco ilioukl be paid into the ex-
chequer, at the difpofition of Parliament ; the fame pro-
portion on the faid fum to be paid to the Proprietors as a
dividend ; that the revenue fliould be divided, one moiety
to be paid into the exchequer, another to be applied to
the difcharge of their bond debts ; after the reduction
of which, a moiety fhould be lent to the Public, at a low
intcrcfl : and that accounts of the revenues and charges,
civil and military, abroad, fhould be annually laid before
Parliament.

L 2 z. In

76 OF THE BRITISH GOVERNMENT

CHAP. I. 2. In 'whom h to he vejled the Supreme Executive Power f

ad. QueilJon,

J" ^'^'',':'^^ J The anfwers to this queftion brought forward difcufllons
the executive oil the conflitutioii of Great Britain, and Mr. Lind places

power u» , . , ^ ,, . ,

Jndia ? them in the following order :

»i^r"ch°*^ Mr. CiiAMDERs was of opinion, that, for the purpofes

bers. both of war and of peace, it would be expedient to give

the fame powers to the Governor- general and Council,
which are veiled in the King, when he a6ls by the confent,
and with the advice of his Privy Council ; but that this
power ought to be guarded, with certain provifoes, viz*
Such governors fliould have none of the exemptions or im-
munities incident to the royal character ; none of the rights
which arife to His Majefly, from his prerogative of ancient
poflcfTion ; none of thofe which are propofed to be given
to the Supreme Court of Judicature ; no power of pardon-
ing criminals, condemned according to the forms of the
Englilli law ; no power of conferring any rank, known in
Britain, except on their own officers ; but a right to give
the rank of Rajah to a Hindoo, and of Nabob to a Maho-
medan. There were certain ancient executive rights of the
Crown, which were aboliilred, at the time the conftitution
of Great Britain was fettled ; and it might be expedient,
to revive them in favour of the Governor-general and
Council. Such were the powers of fecuring fufpe6led per-
fons ; the power of obliging them to quit our territories,
unlcfs they belonged to fome European prince, or ftate,
to whofe factories they ought to be fent ; the power

AND TRADE IN THE EAST INDIES. 77

to guard the limits between the Britifh and the neighbour- chap. i.
ing provinces, and between one Britifh province and ano-
ther. He propofed alfo, in certain cafes, to give to the
Governor-general a negative voice on the adts of the Coun-
cil ; fuch as, in determining on the means to be ufed in
quelling a fedition, or for repelling an invafion. In general,
that his powers fhould be fimilar to thofe polTefled by the
Dutch governor at Batavia, with a refponfibility for the
manner in which he might exercife them.

Sir John Clavering, in his correfpondence of 1776 and Opinion of
1777, advifed, that the Governor-sieneral fhould have the SirjohnCia-

. .. . vei:ng.

power of entering a noli profequi, and of fufpending capital
punilhiments, till his Majefty's pleafure fliould be known ;
that he Ihould have the power of profecuting fufpe6led per-
fons in the Supreme Court of Judicature, provided that they
were not natives ; that he fhould have the power of laying
on an embargo, of imprefling men, and fhips, of forming
a militia, and, above all, that whatever powers were con-
ferred on him, they Iliould be dift;in6tly defined and mark-
ed out.

On thefe opinions, Mr. Lind has made the following re- Remarks of
marks ; that in viewing the hiftory of the revenues of |)pon^,hefe
Bengal, &c. as far back as the reign of Acbar, in 1573, the opinions.
rent-roll had amounted to 1,49,61,482 rupees; thatfrom
the accounts of the Company, Bengal hail furniflied one
million two hundred thoufand pounds, annually forinveft-
ments, after defraying all civil and military charges ; and
. 6. that

-S OF THE BRITISH GOVERNMENT

CHAP. I. that the northern circars, and our poflcflions on the Co-
' romandel coaft, maybe cxpe<5led to furnilli half a million

more; that while the importance of thefe poflcflions, may-
lead us, on the one hand, to adopt the ftrongcfl meafures,
thefe meafures, on the other, ought only to be fuch as will
accord with the cuftoms and prejudices of the inhabitants ;
that the government of the Hindoos had been abfolute,
while that of the Mahomedan conquerors had been ftill
more fo, and yet, that both had preferved the rights of the
Zemindars and of the Ryots ; that fo far were the Ryots
from confidcring this fpecies of government to be an evil, that
they looked up to it as the only one which could prote<St
them againfl: the oppreflTions of the Zemindars, and inferior
Mufl'ulmcn oflicers ; that, therefore, any immature plan
of reformation, foreign to the characters of the people,
might have the tendency of depriving Great Britain of its
new dominions. On thefe accounts, he recommended, that
the executive power, to be given to the government of
Bengal, Ihould approach nearly to that of the ancient Sou-
bahdars, and Ihould not be defined by the Governor and
Council, but by the Governor in council, and that he
fliould be ftyled His Majcfty's Lieutenant Governor-general
and Captain-general of all India, receive his inftruction,
under the fign manual, or from the Lords of the Treafury ;
and be afliflcd by feven Counfellors to be appointed by the
King. In the event of the death of a Governor, he pro-
pofed, that the fenior member of council ihould preflde, till
His Majefty's pleafure lliould be known ; that a fecretary
fliould be appointed by His Majcfl:y; who, in the event of
£ his

AND TRADE IN THE EAST INDIES.

his mifbehaviour, might be fufpended, or removed by the chap. i.
Governor-general and Council. In the event of the death
or refignation of the fecretary, that another might be named
by them, till His Majcfly's pleafure could be known. He
thought the counfellors Ihould be bound, by an oath, to
attend to their duty diligently, not to divulge fecrets, nor
the advice which they may give to the Governor-general ;
the fame oath, he thought, ought to be taken by the
fecretary, who, in particular, was not to divulge fecrets,
unlefs required fo to do by a6l of parliament.

Mr Lind recommended, that the Governor-general
fliould have the power of fummoning the Council ; but
not that of making war or peace, with any Indian Prince,
nor of laying on an embargo, nor of doing any public act of
Government, till he fhould firft have aflembled the Council*
and communicated the fubftance of it to them. That three
of the members of Council fliould be prefent, on fuch an occa-
fion, and fign the minutes of their proceedings, and that the
copies and extracts fhould be authenticated by the fecretary;
that all orders fhould be carried into execution in the name
of the Governor, with the advice of the Council, and be
figned by him ; that if any difference of opinion Ihould arife
in the Council, each member ihould have the right of
giving his kntiments, in writing, fliould fign it, and have
it recorded ; that copies of fuch opinions, authenticated by
the fecretary, fhould be tranfmitted, with the refolu-
tions, to which they referred, to the Lords of the Trea-
fury and to the Court of Directors. If it fliould fo happen,

that

8o OF THEBRITISH GOVERNMENT

CHAP. I. tiijit the Governor-general flioukl propofe any refolutioii
from which a majority, or the whole of the Council dif-
fentcd, then-, that he fhould require the reafons of fuch
dill'cnt to be given in writing, and to be figned by the dif-
fcntient members ; that the Governor flioukl, then, difmifs
the Council, but fummon it to meet in twenty- four hours,
taking care, if any member of the Council fliall have
been abfent, to fummon him, and to furnifli him with a
copy of the refolution, which had been diflented from ;
that when the Council re-affembled, the Governor fliould
order the refolution to be then read, and call upon the
youngefl: of the dilfenting members, again, to give his opi-
nion. If he, and the other members called upon, accord-
ing to their feniority, fliould flill continue to diflent, or
if one of the members, together with the Governor, fliould
afTcnt (luppofmg three members and the Governor to be
prefcnt) or if two fliould affent, fuppofing the number pre-
fent to be four or five ; or if three fliould aflent, fuppofing
the number to be fix or feven ; then the refolution fliould be
carried into immediate effe6t. If, however, it fliould fo
happen, that the whole Council fliould differ in opinion,
from rhe Governor, after he fliould have heard, and ordered
the reafons of the diifent to be recorded, then, if he flill con-
tinued of the fame opinion, he might ftand up in his place,
with his head covered, and laying his right hand on his
breaft, declare, that in his judgment and confcience (or if a
peer, upon his honor) it would be for the good of His Majefly's
fervice, the fafety of the Hate, and the welfare of the King's
dominions, that the refolution propofed, lliould be carried

LltQ

AND TRADE IN THE EAST INDIES. «i

into execution. The refolutlon ought, then, to be recorded by CHAP, i,
authority of the Governor, and become as valid and binding
as if it had paffed with the advice and confent of the Coun-
cil. Four copies of the refolution ought immediately to be
made out, and figned by the Secretary, two of which fhould
be fent to England, by different routes, over-land ; another
by an exprefs vefTel, and the fourth, by the firft chartered
fhip, to the Lords of the Treafury ; and, along with each,
copies of the reafons of diffent, as they had been given into
Council, by the different members.

Mr. Lind thought, that it fliould be enacted to be law-
ful for the Governor and Council, in His Majcfty's name,
to declare war, or to conclude treaties of peace, to enter
into treaties of commerce and alliance with Indian Princes
-or ftates, to levy and difcipline troops, and to order them
on fervice againfl: any of His Majefty's enemies.

He was of opinion, that the Governor General ought to
be entitled to dire6l the Attorney General to enter a noli
profequi, in cafes prejudicial to His Majcfty's fervice, or to
the intereft of the Company. The Governor, alfo, ought to
have the power of fufpending capital punilliments, till His
Majefty's plcafure ftiould be known. He ftiould be authorized
to feize on, and fecure fufpeded perfons ; and, upon exa-
mination,- after finding that his fufcipions were fupported by
evidence, to oblige them to quit the Britifti territories. It
would be expedient, alfo, that the Governor fliould have
the power to ftop and examine all perfons who are not

M poffeifed

X)F THE BRITISH GOVERNMENT

CHAP. I. nofTcfTcd of proper pitffports ; it Ijcing iindciftood that this
' ^ power Ihould not extend to officers who may have the King's
commifTion, to the members of the Board of Trade, nor,
in general, to the covenanted fervants of the Company ;
nnlcfs, upon information, fupported by credible witnefles,
they fhould be accnfcd of crimes, to be tried in the Supreme
Court of Judicature. He thinks the Governor-General ou^ht
not to be Hablc to be proceeded again ft, by indiclment, in
any Court in Bengal : but if charged with trcafon or felony,
and the charge fupported by the oaths of two or more
credible witnefles, that then he lliould be fcnt to England,
to be tried in the Court of King's Bench, The more fully to
euard ao-ainft the mal-adminiftration of the Governors, in
the different prefidencies, they ought to have ample fala-
ries, and to be prohibited, under the fevereft penalties,
from having any concern in trade, in loans, or in con-
trails.

3d Qncftion.

Under w hat ... _

rcibktions is ^d. By whut Perfons, and under ivhat KefirlSllons is the Po'Vi'cr
fubnidiBate of Jubordhiate Legijlation to be exercifed?

legitlaiion to
be c.xcrcifed ?

Opinio') of ^^^' Chambers was of opinion, that though no incon-

Mr. Cham- ycniency had hitherto arifen in Bengal, &c. from the powers
exerciied by the Governors and Councils, of making bye-
laws ; yet that it might be expedient to form a General
Afl'embly with legiilative power. That this affembly ought
to confift of three diftincT; parts, viz. the Governor-ge-
neral, the Supreme Council, and the Supreme Court of

Judicature;

AND TRADE IN THE EAST- INDIES. 83

Judicature; that it llioiild have the power of enabling laws ^^H^P. i.^
for Natives and Europeans, and of enforcing obedience to
them by capital or other penal fan6lions, provided Inch laws
Ihould not be contrary to the authority of the King and
Parliament ; nor contrary to any eftablifhed law in England.
The confent.of each of thefe conftituent parts ought to be
obtained before any law can be deemed valid : it ought
then to be tranfmittcd to England, in the fame manner as the
fubfifling bye-laws had been, for His Majcfty's approbation
or difallowance.* He propofed that the Governor ftiould
be vefted with the power of convening, proroguing, or
adjourning this affembly. In all matters of public con-
cern, its members ought to deliberate together, but to
give their votes as feparate bodies. Referving to the Judges
the liberty of retiring to any other place, and deliberating
apart. The a6l of the majority of any one branch to
be confidered as its voice ; and no a6t of the legiflation to
pafs unlefs there Ihould be prefent, befides the Gover-
nor-general, three members of Comicil, and tzvo of the
Judges. For the purpofc of recording the proceedings of
this aflembly, there ihould be a clerk, to be chofen and
removeable by the aflembly ; and it would be expedient
that this clerk fliould alfo be fecretary of the revenue
branch. In cafe of any divifion in the council, it
would be proper that the Governor fliould have a ne-
gative on their refolutions ; and if their votes were equal,
the calling vote.

* Agrc£;ibly to ftatute 13 Geo. jd. cap. by fee. 37.

M 2 Ma.

S4 or THE BRITISH GOVERNMENT

CHAP. I. Mr. Hastings embraced the fame opinion ; but propofej,
o jniun of ^^^^^ ^^^^ Aflembly Ihoukl confifl: of two branches only, viz.
Mr.Huiliiigs. the Governor-general and Council, and the Supreme Court
of Judicature ; and that, jointly, they Ihould form a Su-
preme Court of Revenue, under the title of Sudiier Duannee
Aiiaulct. — That, in this capacity, the Aflembly ought to
meet weekly, without fummons, or oftcner, if bufmcfs
fliouki require it, upon the fummons of the Governor.

Opinion of SiR Elijaii Lmpey adopted and explained more fully this

Si^rEUjahlm- ^^^^^^^ ^^ ^^.^ ;Haftings, and propofed to give to the Af-

fcmbly, fo conftituted, the powers of enacting laws, and
of enforcing the obfervance of them by capital or other
punidiments ; of regulating the police and taxes in Cal-
cutta ; of laying duties on export, import, and traufit trade ;
of enacting rules for the practice of courts of juftice ; and
of eredting new courts of juftice, with fuch authority as
the fituation of the different diftridts might require. — That
the exercifeof thefe powers might not be abufed, he thought
no law ought lo pafs unlefs three members of the council,
and two of the judges were prefent. And that a majority
of the voices of each, lliould be requifite to give their de-
cifions the force of law That fuch law iliould not be in force
till thirty days after it had been regiftered, and Englilh and
Perfian copies of it been affixed in the Court-houfe of Calcutta,
and in the inferior courts. That it lliould not be competent to
the Aflembly to introduce any punilliment for dimes commit-
ted by His Majefty's European or Armenian fubje6ts, that was
unknown in England, nor to infl:itute any criminal profecu-
tion agamfl; them, unlets by a jury, in the Supreme Court,.

AND TRADE IN THEEASTINDIES. S5

or m couvts of ^/ijrUr'SeJiofi, held by a jufticc of the peace. CiiA?. i.
From thefe privileges, however, he wilhed to except the
clafs of Banditti, called Dekoits. That the Judges ihould
tranfmit the laws pailed in this AlTembly to the King and
Council, and that the Governor-general, lliould tranfmit co-
pies of them to the Diredlors. After His Majefty's approba-
tion, or difallowance of the law lliould be returned to Cal-
cutta, he propofed, that it lliould be publilhed in the fame
manner as the law originally had been, and that every perfon
might have the power of appealing from a law fo palled
within fixty days after its publication in Bengal, and within
the fame number of days after its publication in England.

Mr. Lind makes the following obfervations npon thefe Mr. Lind's
opmions. He thought that no inconveniency had anlen in on thefe opU
Eengal, &c. from the Governors and Councils, &c. not hav-
ing legiflative powers ; and that parliament was not called
upon to ena6t laws for a new colony, but only to grant more
extenfive regulations for a people, who had long had a cour-
flitution of their own ; that the Eritilli fubje6ts in Hindoo-
ftan having been habituated to law courts, correfponding to
thofe in England, they would have no confidence in any le-
giflation, but that which was known in the mother country.
That laws eftabliOied by this new body might be inconfiflent
with the manners, cuftoms, and intcrefts of the natives.
That, by thefe propofitions, many of the fame laws might be
applied to His Majefty's European, Armenian, and Native
fubjedf s. Of the two firft of thefe clafles numbers rcfided
within the Ditch at Calcutta, and very few without it ; and

nions.

t56 OF THE BRITISH GOVERNMENT

» . '

cirM\ I. of the lad clafs, many were far removed from the feat of
fovcrnmcnt, and could not be made to comprehend the
meaning of the laws to which they were to be fubjccled.
He thought it a fpecies of alifurdity, that men, who were
flrangers to a people, fliould be vcfted with the power of
making alterations in their laws, particularly in the criminal
branch of them, and more fo in the fanclions by which
thefe laws were enforced. He conceived that, in this opinion,
he was fupported by the diftinclion which Sir Elijah Impey
propofed, between the punifliments applicable to His Ma-
jefty's European or Armenian fubjecls, and to the Natives *;
and, upon the whole, that the obje6ls of this kgiflatioii
ought to be few and fmiple, and luch as might fafely be
entrufted to the Governor and Council, who ihould be in-
vefbed with power to make and iffue rules and regulations
for the good order and civil government of the provinces,
and colle£lion of the revenues ; leaving the laws of England,
as the rule for His Majcfty's fubjeds, and the laws of the
country for the natives. He faw no impropriety in giving the
Governor-general and Council, the power of making affeff-
ments, and levying taxes within the town of Calcutta, to
fuch an amount as might be neceflary for the maintenance of
the police; nor did he think it inexpedient that they fliould
have the power of proportioning the duties on import, export,

* In a note, Mr. Lind fupports his opinion by the eafc of Nundcomar, about which
theie has been fo much controveify ; and by a cafe mcntionrd by Mr. Francis, where
an Indian having caught his wife in adultery, puniflicd her, agreeably tathe cndoms
of the country, by cutting off her nofe, and yet was tried for this deed by the laws of
England, and hanged.

and

AND TRADE IN THE EAST INDIES. 87

and tran fit trade ; but that the rules in this cafe, ought chap, i.^
tobcdehberatelyeftabhflied, by being read at three diflercnt
meetings, and then figned, and approved of by the Governor.
He concludes, that the judges ought to have no voice
in the Legiflative Council, in uhich they fliould be called
iipon, to give advice only, and be affifted by the Roy-
Royan, fuperintendant of the Khalfah, Chief Canongoe,
Chief Pundit, and Chief Moulavie. Whatever regu-
lations misiht be ena6led, he agreed, that they ought to be
firfl: publilhed, a certain time, before they were in force ;
and next tranfmitted to England for His Majefty's appro-
bation or difallowance. 4. Quefilon,

■under what
title, and in

4. Under ivhat title, and in what manner ouc^ht the territorial ^^^^tt ma"ne"

~ ' '~> ought the

reVeflUeS to be CoUe5lcdf territorial re-

venues to be
colleded ?

Mr. Francis and General Clavering agreed, in con- Hiftoricai
fidering the anfwer to this queftion, as involving in it all which^Mr.
the circumflances upon which the prefervation of our In- Gcn^ima-
dian poffeiTiOns depended. Mr. Francis thouo;ht that the ^'^'■"s fo""-
Company had been m an error, both m confidermg the nions?
Mogul, to be the proprietor of the foil, and in making this
principle, the foundation of exa6lions, which, though
calculated for the exigencies of the moment, muft: ulti-
mately produce the ruin of the country. From the records
of the Khalfa, from other authentic documents, and from
the information of the oldeft fervants of the Company, the
progrefs of the revenue had been as follows : In 1573, Acbar
conquered the Bengal provinces and Rajah Toorcl Mull
6 formed

X? OF THE BRITISH GOVERNMENT

cii.xr. i. formed the jummabundy, or rent-roll, for the empire.
He let the lands to the Zemindars, on a moderate quit-rent.
The jumma, for Bengal, including the Circars of OrifTa,
was 1,49,61,482 — i^. 2. rupees. This fum differs little from
the rent raifed by Sujah Chan, in 1728, but is a crore Icfs
than the lands were afTefled at in 1775. The record of this
jumma was called turmar ; tunnar-jumiua then meant the
rent-roll, and was alfo called ^z//?/ or the original y«w;«^. On
this, a tuckfeem, or divifion account of the foubah was
formed, fliewing the proportion which each zemindary, per-
gunnah, village, &c. was to bear. The hereditary office of
Canongoe was then eftabliQied. This officer was to keep the
accounts of the turmar and tuckfeem. In all transfers the
turmar-jumma regulated the new grant. The jaghires of the
IMunfubdars were portions of this jumma, and the fees of the
Canongoes are flill calculated upon it. The limits of pro-
perty again were divided, by reference to the tuckfeem, and
the mode of collection was funple. The Zemindar paid
the rent at the treafury ; if he did not, a temporary attach-
ment of the lands took place. It is not known, whether
the Zemindars were required by Government to give pottahs,
or leafes, to the Ryots ; but it is certain, that the aujU, or
ground-rent, was the firfl thing fpecified in fettling the pro-
portion of the tuckfeem, to be paid by a particular tenant,
and that upon it, alfo, all other taxes, whether permanent
(Aboab) or occafional (Muthote) were proportioned ; and
that the Ryot could not be difpoflefled, fo long as he paid
his quit-rent. Such were the rules, till the termination of
the power of Sujah Chan, in 1739 or 1740. Though the
Soubahdar frequently extorted fums from the Zemindar,

* by

AND TRADE IN THE EAST INDIES. 89

by way of a free gift, the jumina v/as invariable. In the
time of Aliverdi, who cut off the fon of Sujah, the Zemin-
dars were fo rich that they aflifted him, during his wars with
the Marhattas, with a crore and a half of rupees. He and his
fucceffor Surajah Dowlah were the firfl who added the aboah
or occafional taxes to the jumma, and by that encreafed the
ground rents; and hence all temporary taxes of this natuie
began to be made permanent. The jumma under Sujah Chan
was 1,01,38,006 rupees ; under Surajah Dowlah 1,38,12,443
rupees; under Cofim Ally 1,86,59,720 rupees. The nett
rent propofed in I'jjd-'j was ^ ■,'] " i'} 2iill S I'upces. The fum
a£lually colie6ted was 1,36,88,614 rupees. When the
Duannee was ceded to the Company, the ancient eftablilh-
ments had been overthrown by Coffim Ally, the Zemindars
difpofleffed of their rights, and reduced to beggary, and
wealthy families brought to ruin. The amount, however,
demanded for revenue and for inveftments was daily made
greater, and men of low rank and defperate fortunes em-
ployed as aumils to colled it. After the crop of the Ryot
was on the ground, a new muthote was laid on, and the
improved made to pay for the deficiency of the unimproved
land. Thofe emoluments which many of the natives had
drawn from offices, in their di(l:ri61:s, were feized on, and
fines impofed upon them, which went into the general
fund. The decline of refourccs, neceflarily refulting from
fuch oppreffions, were pointed out both by Mahomed
Reza Chan, and by the moft intelligent of the Com-
pany's fervants. Supervifors were, therefore, appointed to
make accurate ftatements of the profits of the Zemindar,

N Farmer,

go OF THE BRITISH GO VERNM EN r

cir.\;'. I. Farmer, &c. all was fwept into the trcafury ; and the fu-
pcrvifors, inflcad of being a relief, laid the foundation of
new opprefTions from having proceeded upon a valuation
of the whole rents, including the profits of the Zemindar,
Farmer, &c. Nor was this evil (iays Mr. Francis) remedied
by the committee of circuit, appointed to fucceed the iu-
pcrvifors; for by letting the revenue to adventurers, they en-
crcafcd the nominal rent, but the encreafe was only nomi-
nal, for a balance remained due from 1772 to 1776 amount-
ing to at leaft a crore of rupees. From thefe obfervations,
he concluded, that the Company had levied higher rents
than the country could pay; and that, from the leafes be-
ing uncertain, and taxes encreafed, as land was cultivated,
all incitement to induflry or improvement had been taken
away ; the Zemindar rendered defperatc ; and the leafes of
the Ryots, from this confufion, had become unintelligible^

Remedies Tq remedy thefe evils, Mr. Francis pronofed that the

propofcd by . •' i r

»hem. jiimvia, or rent-roll, fhould be fixed, recorded as unalter-

able, and publilhcd to the people. That the whole de-
mands upon the country, including Ghazipore, iTiould be
founded upon an eftimate of the civil and military expenfes,
the amount of invcftments and of contingencies *. That

* Mr. Lind, in a note, refers to two eftlmates where an unappropriated balanc*
vould remain of 37)99,043.15 rupees, for unforefccn events ; but General Clavcring-,
thought that many of the articles for fervice were calculated upon too narrow a fcale
and therefore he was againft the rcmiffion of 10 per cent, on the colledioa. Mr.
Lind obfcrvcs, that the cfiimatc of charges for the civil cAabliflunent was too

every

AND TRADE IN THE EAST INDIES. 91

every pofTible relief Hiould be given to the renters of the criA?. i.
Duannce lands, both on account of the diftance of them
from the capital, and of the poverty of the inhabitants.
With the view of illuftrating thefe jiropofitions, Mr. Francis
thinks, that the medium receipts, of the lafh three years,
ought to be taken as the rule for affeiTment, and that all
temporary contributions ought to be abolilhed. That the
iuckfeeiny ought to be formed, and a copy of it given to the
cutcherry of each diftridf. That regularity of payment
Ihould be made the tenure upon which the Zemindar was
to hold his leafc. If this tenure fliould not be fulfilled,
then that a part of the zcmindarry fliould be fold for pay-
ment of the rent, and the balance paid back to the pro-
prietor. That in all fuch fales, a preference ought to be
given to the next heir of the Zemindar, but if fuch heir
did not appear, or claim, then that a temporary duan, or
fteward, ihould be appointed ; but, at the fame time, be
declared to be incapable of becoming the purchafer. That
the law refpecling the inheritance of zemindarrics ought
to be altered, in fo far, that when a zcmindarry was more
in value than two lacs, Government might divide it among
all the fons of the late proprietor ; when lefs, vcfl it in
the eldeft ; but, in this lafl cafe, oblige him to grant allow-
ances for the maintenance of the younger fons.

Mr. Hastings agreed with Mr. Francis in thefe lafl pro- Oinnionof
pofitions, but General Clavering thought, that the adoption ^lf« '^^'l'"g*'
of them would be a dangerous experiment, and at all events,
a fruitlefs one, becaufe it would be in oppofition to the

N 2 ancient

OF THE BRITISH GOVERNMENT

CHAP. I.

ancient cufloms of adopting fons, from which the Zemin-
dar never would, willingly, recede. To obviate this ob-
jection, Mr. Francis thought, that a court of wards might
be inftitutcd ; but this General Clavering confidered to be
an expedient not lefs hazardous than the preceding one.
Mr. Francis was for flopping the fums allowed by Zemin-
dars, upon the reftoration of their rights, and that an en-
quiry lliould be inftituted into the foundation of the whole
of their rights, and a term of prefcription fixed on, after
which, all lands held as charity lands might be refumed.
Sir John Clavering confidered the refumption of charity
lands, to be a fubjecFt of great delicacy.

Obfcrvatioiis
ot" ]Mr. I'ran-
cis OH it.

With refpe»Sl to the Ryots, Mr. Francis thought, that
Government lliould prefcribe a form for the pottahs, or
leafes, which the Zemindar gave to his tenant, and that
in it, he (hould be obliged to grant fo much for every
cultivated beegah, varying the fum according to the value
of the foil or fituation, without any reference to the aboab.
That the fuperior of the diflrift ought to fee this pottah
properly authenticated, by affixing to it, firfb his own fig-
nature, then by having it recorded by the Canongoe, or
the officers of the Cutcheiry, and that the Ryot ought to
have a figned account of his jummabundy, for every year's
rent, with a releafe annexed on compleating his payments.

Obfcrvat'ions Mr. Lind obferves, upon the whole of thefe propofitions

of ^Tr. Lind ,..-,., , , • l i

«n the whole, and opinions, that, in theory, they may be unexceptionable,
but that, in pra6tice, they are not poffible. He therefore

advifes

AND TRADE IN THE EAST INDIES. 93

advifes, either that the Zemindars and Ryots fhould be re- chap. i.
flored by a6l of parliament ; or that an a€t fliould pafs
empowering the Governor-general and Council to reftore
them. If neither of thefe propofitions ihould be adopted, he
recommends, that His Majefly fliould give it in inftruction
to the Company to adopt this laft falutary meafure.

5. Queftion.

5. Hozv are the other Revenues to be colleSied? other reven-

ues to be
collected ?

The moft valuable part of the revenue comprehended in Opinion of
this indefinite defcription, was that which arofe from the ^'-^^"'"S*-
fait works. Upon this fubjedl Air. Haftings was of opinion,
that till fuch time as a fettlement of the lands could be
made, no pra£ticable plan could be formed for rendering the
revenue from the fait works producStive. The itate of this
monopoly, in 1781, he fays, was as follows: The Com-
pany, under the preffure of heavy demands, diredled
their fervants to take the fait works out of the hands
of private perfons, and to refume them for the benefit of
the Company ; expecting, from this meafure, to draw a
revenue of jT.i 20,000 per annum. The contrails, in con-
fequence, were put up at audlion ; and the produce, du-
ring the two firfl: years, amounted to 32,54,706 rupees.
The redu6lion of the revenue, in fublequcnt years, he
fays, was owing to the external caufe of the importation
of coaft fait ; and to the internal one, of want of experi-
ence in managing this branch of the revenue. He there-
fore propofcs feveral ways by which the fait might be con-
verted to the profit of Government. — i. By authorizing a
free fale of fait, fubjedt only to a duty,— 2. By entrufting

9 +

or THE BRITISH GOVEPvNMENT

CFJAi'. I. to the Zemindars the property of the cotteries, lying within
their zemindarrics, and take the payments in fait. — 3. To
receive the payments, duties included, on the fame plan, in
money.— 4. To let the fait mahals by diftincl contract, in-
dependent of the Zemindars, and to take the payment in fait.
— 5. To take the payments, upon the fiime plan, in monc)'.
He preferred the 3d of thefe methods, both becaufc it would
fecurc a greater amount to Government, and becaufc it
would remove many difficulties in managing bufmefs.*

Objection to SiR JoHN ClAvering reprobated the putting the lands
cil'vcri:."^ "^ and the contrafls for fait into different hands, and faid
that the importation of foreign fait arofe from the mono-
poly in 1767; tracing, by evidence, that the importation
had been greater or lefs, in proportion as the monopoly had
been granted or prohibited. He propofed, therefore, to
rcftore the lands and fait farms to the Zemindars, and to
put an additional rent on the lands for the fait works,
leaving to the Zemindar, without any interference of the
officers of cuftoms, to manufaclurc as much fait as he plcaf-
ed, and to fell it where he could; concluding, that this
would produce more than jT. 100,000 per annum of revenue ;
reduce the price of fait to the inhabitants ; and prevent the
exportation of coin, and the importation of coaft fait. Mr.

* Mr. Lind, in a note, refers to a paper entitled, " An Abftrafl of the Prime Coft
of Salt for the Years 1772, 1773, and 1774.." In the firft of thefe years (according
to this paper) the profit was 18,51,952. 14. rupees; in the next, 14,02:753. 2. 6-
rupees; but the ftatemcnt for the laft t«o of thefe years being ntade, partly, by efti.
mate could aot bc_dcpcndcd upon.

AND TRADE IN THE EAST INDIES. 05

Francis, who had formerly preferred the firft fchcmc of chap. i.
Mr. Haftings, afterwards agreed in this opinion of General
Clavernicr.

State of mo-
nopolies in

The three great monopohes, at this jun6lure, were that
of fait, that of opium, and that of faltpetrc : we have al- the Bcagai

• • 1 r /-L c 1 r T» T provinces..

ready given the opmions upon the hrlt or thele, Mr.
Francis was for aboLilhing the fecond, and fubje6ling opium
to a duty of thirty ficca rupees per maund ; and he was for
abolilTiing the laft, as the only means of lowering the
price. In general, he gives it as his opinion, that if there
is one great monopolift, then a number of individuals muft
be precluded from employing their little capitals; and if
this monopolift fhall be under the authority of Government,
in cafe of a difpute, there is no impartial tribunal to
which to apply for juftice. He therefore concludes, that if
the Company are to be merchants, all their inveftments
ought to proceed from contra6ts, till fuch time as improve-
ments in the manufactures will admit of ready money pur-
chafers. Sir John Clavering agreed with Mr. Francis in
his general ideas againft monopolies, but held thofe of
opium and of faltpetre to be exceptions ; and that the quan-
tities of thefc articles required for the inveftments mult be
purchafcd, at the Prefidency, by the Company.

Mr. Lind concludes, on the whole of thefe opinion?, Jir. Lind's
that from every part of the evidence, the fait works ought d^is^i'itl"^.
to be let together with the lands, and leafes to be granted to
the Zemindars. That the inveftments ought to be pro-
vided

OF THE BRITISH GOVERNMENT

CHAP. I.

6th Qocftion.
Bv wliat
courts ou.c;ht
the juciici;il
power to l;e
ndininiftrrcJ
in the BiMtifii
provinces in
India ?

Opinions of
Mr. Hallings
anil Mr. B?.r-
well.

viLlcd forby contra6ls,asfoonas theflate of the manufa6lurcs
will admit of it; and that it would be of cflcntial fervice to
the Company if they made their purchafes AVith ready
money.

6. How, and by iv/.mt Courts Jljould Jujiice be admlnijicred in
the Eril'iJ]} Provinces in India ?

Mr. Hastings and Mr. Barwell propofcd, as an an-
fwer, that the jurifdiclion of the Supreme Court fliould be
extended over all the provinces without hmitation. That
the ancient courts of Nizamut and Duannee flioukl
be continued ; but that a controul over them fhould be
vefled in the Supreme Council and the Judges ; and that
the Provincial Councils fliould be vefled with judicial au-
thority, in the internal diftrifls, as well as become courts
of revenue. It was upon this plan that Sir Elijah Impey
drew up the heads of a bill.

Opinions of
Mr. Francis
and General
Clavciing.

Mr. Francis and General Clavering blend their views
of the judicial power with their general fyflem for govern-
ment ; the form which they propofed approached to the
ancient Afiatic. In it, the MulTulmen chiefly were to be
inverted with offices of trufl, while the cultivation of the
foil was to be left with the Hindoos, whofe property it had
been. They propofed to fettle the duties at fixed rates ; and
thought that the Company, like other merchants, fhould be
obliged to go to market, to purchafe their inveftments, and
that the natives fliould be left with their cufl:oms, laws,

5 and

AND TRADE IN THE EAST INDIES. 97

and religions : concluding that in this way the Moguls go- chap, i.^
verned their conquered Hindooftan.

Mr. Hastings taking, as the ground of his reafoning, Mr. Haft-
a plan of government which he had propofed in council, of^civii juiif-
in 1772, recommended the eftablilhment of the following Jii'^^^'J^Jp'Ja^
courts of juftice. The firft court was to be the Sudder of govern-
Duannee Adatikt, which (liould confift of the Governor-gene-
ral, the Chief Juftice and other Judges, the Roy Royan, and
the chief officers of the Khalfa : three of thefe were to com-
pofe a court, one of Avhom muft be a member of Council,
and one a member of the Supreme Court of Judicature.
Though this court was to be a court of appeal, it was, at the
fame time, to have the power of receiving new exhibits,
and of examining new witnefles. It was to decide on per-
fonal property, above the value of a thoufand rupees, and
on all cafes of malguzary lands, or lands paying a rent to
Government, and was to fit once a week, Mr. Chambers
objedled to the name of this court, as implying that the
diftindlion between Nizamut and Duannee had not been
abolillicd.

Mr. Hastings, fecondly, propofed to eftablifh provincial
Courts, to confift of the provincial Councils, at their ufual
meetings, affifted by the provincial Duans, Canongoes,
Moulavies, and Pundits. Thefe courts were to hear and
determine on the complaints of the inhabitants, or remit
them to the inferior courts, from which this was to
be confidered as a Court of Appeal. Thefe provincial

O courts

98 OF THE BRITISH GOVERNMENT

CHAP. I,

courts were to keep regular records, extracts from which,
were to be held as evidence, when the cafe was brought by
appeal to the Sudder Duannce Adaulet. Mr. Chambers, to
produce thefe ends, propofed to divide Bengal, Bahar and
OrifTa into eight zillas ; of which Bahar was to be divided
into fouth and north. He thought the jurifdiclion of thefe
courts iliould be confined entirely to revenue cafes.

Mr. Hastings, thirdly, propofed a court of Adaulei
Duiwuee Zillajaut, to be fuperintended by one of the members
of the Provincial Council, in rotation, affifted by the Provin-
cial Duan, Canongoe, and one Moulavie, and one Tundit, to
be named by the Governor General and Council. In this
court the complaints of the inhabitants were to be heard,
in the firfl inftance, and appeals from it might be carried
to the Provincial Council. It was to fit three times a week,
in the principal town of each divifion, and copies of its pro-
ceedings, with abfl:ra6ls, were to be fent before the 5th
day of every month, to the Provincial Council, to be by
them forwarded for record in the Supreme Court. Sir
Elijah Jmpey propofed that the Judge of this court fhould
be a fenior fervant of the Company, and be continued in
his ofBce quamdiu fe bene gejfer'it. In oppofition to this opi-
nion Mr. Chambers did not think it neceffary that the Judge
iliould be one of the fervants of the Company.

The fourth court, propofed by Mr. Haftings, was that

oi yldatdet Duafinee MofuJJel, or fubordinate Country Revenue

Couit, to fit in diflrids where no Court of Adaulet Duannee

5 Zillajaut

ANDTPvADE IN THE EAST INDIES.

Zillajaut was ufually held. This inferior court was to con- cha?. i
fift of the Naib, the Canongoe, one Moulavie, and one Pun-
dit, to be chofen by the Goveraor-general and Council, and
to be held four times a week, or oftener, in the principal
Cutcherry of each diflricl:. From the decifions of this court
appeals might be made to the Provincial Courts.

With the object of removing the difficulties which might
arife in eftabliihing thefe courts, Mr. Haftings propofed that
all the forms and rules obfeived by the late government fliould
be held to be legal. That the Roy Royan and Superinten-
dant of the Khalfa records, fliould, when required by the
Governor-general and Council, or by the Supreme Court of
Judicature, or by an individual, have the power of ilTuing
warrants, and of fummoning witncfles, but not that of in-
fli6ting punifhments, or of detaining parties or witnefles
longer than 48 hours, or no longer than lliould be neceflary
for their examination. He thoughf, alfo, that they iliould
have the power of apprehending any fan-ner, or fub-farmer,
againfl: whom complaints had been entered in the Provincial
Council, and of fending him before it. In his exercife
of this power, however, the Judge ought to be poffeflcd of
the letter of the Provincial Council, fjiecifying tiic caufe for
which the warrant was required, and that the letter
ought to be recorded. To guard againft every fpecies of
oppreffion, the party ought to have a right of com-
plaint to the Supreme Court, againft the Provincial Council.
On this laft article, Mr. Chambers preferred the mode of in-
didment to that of a6tion ; but Mr. Haftings propofed giving

O 2 to

loo OF THE BRITISH GOVERNMENT

CHAP. I. to the Supreme Court, not only the power of fending down
cafes to the inferior courts, but of evoking any can fc which
fliall be pending before fuch court.

Thcfj-ftcm The Criminal Jurifdiclion, Mr. Haftings propofcd to

jui]idi"''ion lodge in two courts ; the Nizamtit Stidder Adivdet, and the
baiit^ '"""^ Foujdary Adatikt : both to be formed upon the bafis of that fyf-
tem of government which he had fuggefted in Council, in
1772. To the Darogah of the Niz,amut Sudder Adaulet,
Tinder the title of Naib Nazim, he propofcd to give the
power of confirming or mitigating the punilhments decreed
in the Futwah, or fentcnce of t]\e Ni^amut, and of ilfuing
warrants for execution ; but thefe to be fubje6l to the revi-
fion and confirmation of the Governor-General and Council.
He was of opinion, that the Foujdary Adaulet (hould have
more extenfive powers than it was anciently vefted with,
particularly, that the Judges of it ihould not be liable to any
a6lion or punifhmcnt, for what they might have done, in the
regular difcharge of their duty, and fliould only be made ac-
countable to the Nizamut Adaulet, which was to be under the
controul of the Governor-general and Chief Juftice ; upon
this laft point. Sir Elijah Impey was of opinion, that the
power of the Darogah fhould be transferred to the Governor-
general and Chief Juffice, with a provifo, that they were
not to encreafe any punilhment to capital, unlcfs the offence
fhould be felony in England without benefit of clergy. Mr.
Chambers was for prohibiting capital punifhments, unlefs
for fuch crimes as the general Aflembly fliould adjudge
to be worthy of death.

AND TRADE IN THE EAST INDIES. loi

In addition to thefe Courts of Juftice, Mr. Haftings brought .^"-^P- ^\
forward a plan for the pohce of Calcutta, in which he propofed of Police fm-
to divide the city into eight diftri(51:s,each to be under a Cut-
wall to be nominated by the Governor-general and Council,
fromamongthc fefi which formed the majority of the inhabi-
tants in each divifion. Thefe Cutwalls were to be fubje6l to a
Superintendant of Police. They were to have the power
of imprilbning for twenty-four hours, and of ordering a
punifliment to the extent of twenty lallies with a rattan.
They were every day to make their reports to the Superin-
tendant, who might encreafe the number of lafhes to fifty.
Sir Elijah Impey was of opinion, that the fame plan ought to
be extended to the other towns within the Britifli provinces.

With the view of rendering the whole of this judicial fyf-
tem efficient, Mr. Hajlings thought, that there fhould be
an Advocate of the Company, for the management of fuits,
in which they were, dirc6tly orindire6lly, parties ; and an
Advocate for the Crown, who, upon information, fliould
prolccute offender? in all cafes in which His Majefty's inte-
refts were concerned.

SvcH are the outlines of the plan, on which Sir Elijah Impiove-
Impcy drew up a bill, though he introduced into it fomc al- boVhproJofcd
terations, viz. he propofed to extend the jirifdicflion of the imp^ey.^''^"^
Supreme Court over all the countries that were, or might
become fuijod to the Company: and to veR; it with
Admiralty Jurifdidion; giving to it the power of trying

accelTaries,

102 OF THE BRITISH GOVERNMENT

CHAP, i.^ acccflaiies, when the principal was not within the Com-
pany's territories. He thought it ihould pofTefs the power
of granting probates, and letters of adminiftration to the
heirs of perfons leaving cflecls within its jurifdi6lion. To
diminilh the expenfe of law fuits, no depofitions fliould be
reduced to writing, unlefs in cafes which might be brought
by appeal to the King in Council. When cafes were referred
to arbitration, thedecifionsofthe Arbitrators might be made
Rules of Court, and punilliments inflidled on them when
they a6led in a corrupt manner. He propofed empowering
this court to decide in all fuits, of a civil nature, between
the Company and His Majefty's fubje6l:s, European and
Armenian, or between thel'c fubje6ls and thofe of other
nations, within the BritiQi provinces, cither when the cafe
exceeded the fum of five thoufand current rupees, or when
the Juftices fliould certify, that it was requifite for the cafe
to be tried in that court. In general, he thought, that the
Supreme Court ought to have a controul over all other courts,
in the fame "manner as the Court of King's Bench has in En-
gland, except over the Sudder Duannee Adaulet, of which
the Judges were themfelves members. He propofed, that all
Judges of the inferior courts fliould be amenable to the Su-
preme Court ; and that Sherifl's ought to be appointed, with
power toifTue writs, to hi executed in the diflant provinces.
That the Provincial Councils fliould be empowered to take
andjuftify bail, and that the Supreme Court ihould have
the right of appointing Commiflioners to ftate interrogato-
ries, as is done in the Court of Chancery, in England ; and
that the refult ought to be held as legal evidence.

ANDTRADEINTHEEASTINDIES. 103

To conciliate this fyflem, with the ufages of the natives, chap. i.
Sir Elijah Impey propofcd, that Pundits, Moulavies, Canon- His attempt
goes, &c. the Roy Roy an, and fuperintendant of the Khalfa [j^e'f"f!ftgm3
records, fliould attend the co\irt of Sudder Duannee Adaulet, tu each other.
be confidered as ofiicers of it ; and that a copy of the Hindoo
laws, and the decifions of the Pundits upon them, fhould
be depofited in the Supreme Court, and held as authority
in all queftions in which the natives of this clafs were parties.
He was of opinion, that the clerk of this court fliould
have powers fimilar to thofe exercifed by the clerks of the
Court of King's Bench. That he fhould be entitled to
fue for fines and forfeitures, which were to be at the
difpofal of His Majefly ; but that part of thefe fines, till
difpofed of, might be employed in fupporting fuch fuits
of the natives as came before the court, in forma pau-
peris. The fums fo arifmg, to be placed out at intereft,
and the clerk of the court to receive and be anfwerable
for fuch intereft, 'till the ift day of every January,
when it fhould be lodged in the hands of the Go-
vernor and Council, for the public fervice. Sir Elijah
Impey was farther of opinion, that the Supreme Court
fliould be vcftcd with power to try cafes of trcafon, and
that it, as alfo the inferior courts, Ihould be entitled
to appoint their refpedtivc ferjeants and officers. To
prevent all undue influence, in criminal cafes, the members
of the Foujdary courts flrould be prohibited from hav-
ing any communication with the parties, except in court,
and from receiving any prefents or gratuities of them,

• To

104

OF THE BRITISH GOVERNMENT

CHAP. I.

To facilitate the recovery of fmall debts, he propofcd giv-
ing to the head farmer of every pergunnah, the fame kind
of jurifdiclion, which Courts of Confcicnce have in Lon-
don ; bnt, in Calcutta, to veft that power in the Court of
Requefts ; he thought it might be expedient to appoint a
Coroner for Calcutta, and that he, and in general all the
officers of juftice, fliould be obliged to take the oaths of
allegiance and of office. As the Company came to the pof-
feffion of their territories in Auguft, 1765, that period
might be fixed upon, as the epoch a, from which prefcrip-
tion ihould be reckoned. To protect the Ryot from op-
preffion, it Ihould be ftrictly enjoined, that no demand
fliould be made upon him, beyond the amount of his pottah
or leafe ; nor fliould any taxes be impofed which had been
jibolillied by the Company. Farther, to prevent oppreffion,
he recommended taking away all private authority from
the creditor of imprifoning his debtor ; and to prevent
•ufury, intereft fliould not, in any cafe, be allowed to exceed
12 per cent. As great injuftice had arifen from Europeans
flying from the Company's dominions it ought to be declared,
that no European, who had refided in the Britilh provinces,
fliould be permitted to enter into the ferviceof any Indian
Prince, without firft receiving a licence from the Governor-
general. And on the whole, that this a6t fliould be pub-
lifhed in the Supreme Court, at a meeting fpecially held for
that purpofe, and in one month after fuch publication, all
courts, except thofe appointed under this a6t, fhould ceafe
and determine ; and that fuch cafes, as might be pending in
thefe courts, fliould be transferrablc to thofe which were to

4 be

AND TRADE IN THE EAST INDIES. 105

be fubflitnted in their place. If the Governor-general, with CHAP, i,
the powers given him by this a6t, fliould refufe to appoint '

Iheriffs, &c. the appointments might take place by a Man-
damus from the Supreme Court.

Sir John Clavering, Mr. Francis, and Colonel Mon- Oppofite fyf-
SON propofed very different views both of government and jo'hnciavcr-
of jurifdidtion, from thofe recommended by Mr. Haftings Fianci^and
and Sir Elijah Impey. They confidered the eflablifliment of £°'°"''i

. , -, 1 r r Monfou.

provincial councils to be a mealure fundamentally wrong;
that there ought to be but one deliberative council, and that
all powers delegated by it, fhould be declared to be purely
official. Mr. Francis, in particular, held it to be abfurd, that
any government Ihould have in the fame branch of it both
executive and deliberative powers ; fince in the exercife
of them, it could not plan with wifdom, nor difpatch with
celerity; he therefore prefered giving the fundlions of the
council, as a Board of Revenue, to fupervifors a6ling
under a commiflTion, and with a falary. He thought,
however, that the power of the fupervifors lliould be only
temporary, and that, at all events, it Ihould continue no
longer, than till the Zemindars could be re-eftabliflied,
the Ryots receive their pottahs, and the rents be in the
courfe of regular payment to the Khalfa ; that the power
of thefe fupervifors might be efficient, he propofed, vefting
them with a particular fuperintendence over the Duannee
Adaulet Zillajaut ; that they Ihould be attended by the
foujdary ofliccrs, and by men learned in the laws of Hin-
dooftan. In particular, that they fhould have the power

P of

,c6 OF THE BRITISH GOVERNMENT

c HAP. I. of checking monopolies, and of removing vexatious impe-
diments to trade : The eftabhfliments of the Company's fer-
varits would, by thefe means, be diminilhed, and their
receipts and payments brought into the fimple forms of bu-
finefs. Before difmifling the provincial councils, he recom-
mended, that they fhould be required to give, r. Anexa£t
regifter of the landed property. 2. A table, fpecifying the
three laft years receipts. 3. A characSter of each Zemindar
and the fituation of his family. It was by the foujdary ju-
rifdiction that in the ancient conftitution, the Zemindar be-
came bound for the peace of his diftri6t, and to make good the
damages done by offenders in it. To this duty the Zemindar
was compelled by the 'foujdary, and the taxes levied frona
his exercile of it, formed an article of revenue, termed
Aboah Foujdary. The Zemindar ought to be not merely
the collc6tor of the revenue, but a fubordinate inftrument
of civil adminiflration. On his reftitution, therefore, he
ought to be required to keep up the ancient ufages, fuch,
as the reparation of roads and of bridges, the infpe6tion.
of plantations, &c. It was, upon the whole, his, and the
deliberate opinion of the gentlemen who a6led with him,^
that Bengal, &c. could not be held by Great Britain, if its
inhabitants fhould be fubjc^led to the Britilh laws only ; a
conclufion which he fupports by a reference to Mr. Verelfl's
obfcrvations. It was in vain to think of rendering the Du-
annee Courts, till the Zemindars iliould be reftored, ade-
quate to the purpofes for which they were inftituted. In
their then ftate, the moft powerful of the parties in a
revenue caufe, was ill effect in the Judge, nor could the

fyflem

ANDTRADEINTHEEASTINDIES. 107

fyftem which he himfelf recommended, be made efficient CHAP. i.
in the hands of an Englilliman, unlefs he was affifted by
perfons inll:rn6ted in the laws of the Hindoos, and of the
Mahomedans ; had a falary that made him independent ;
took the oath of office ; was made removeable ad culpam^
and made refponfible to the Governor and Council.
Juflice, in this way, might be accommodated to the
manners of the people, and to their ancient inftitutions ;
but the delays and expenfes of the Englifli law would
ill fuit the fnnple manners of the natives; and, at all
events, thefe lafl Ihould never be left to the mercy of
attornies and lawyers.

Mr. Lind obfeives, in general, upon thefe different opi- Opinion or

1 . • • 1 •.. 1 • , 11 • • , Ml. Lind on

nions, that it is an admitted point, by all parties, and by the whole of
all writers, that the laws and ufages of Hindooftan ought offuriSiai"m
to be continued in force, and that the Supreme Court of anJofgo-

. *- vernment.

Judicature would require aids from them, in the adminiftra-
tion of juftice. If this be the fa6V, in fo far as regards the
Supreme Court, wheie fuits muft terminate ; it certainly
cannot be lefs fo in the Subordinate Courts, in which the na-
tives are almofl: in every cafe the parties. The ancient ufages
may have been perverted, amid the revolutions, which Hin-
dooflan has experienced ; but it certainly is more practica-
ble to reform thefe laws, than to introduce a fyftem, fo-
reign to the manners of the people. In criminal cafes, the
ufages of the Englilh law, in particular, in takhig a perfoa
into cuftody, would deprive a Hindoo of the privileges of
his caft, and difgrace him for ever; and it certainly would

V z be

io8 OF THE BRITISH G OVERNMENT

CHA P. I. \)Q the higheft cruelty to expofe the natives to the expenfes
of Englifh law-fuits, when they could not benefit by the
ifTuc. Wc may offer them the benefit of our laws (fays he)
but we ought not to force them to accept of it.

From the whole, he draws the following chain of in-
ferences ; that the jurifdiction of the Supreme Court ought
to be limited, in criminal cafes, to the Europeans, or Ar-
menian fubjedls of the King, and to their defcendants ;
that, in civil cafes, this jurifdicSlion fliould be limited to
parties of the fame defcription, or to cafes where the
parties, in the contraft, have (lipulated an appeal to the
Supreme Court of Judicature ; that an appeal might
be made from the Mayor's Court to the Supreme Court ;
that the Supreme Court ought to have admiralty jurif-
di6lion ; that it ought to have the power of trying ac-
ceffarics, of granting probates, letters of adminiftration, &c.
of preventing the reducing depofitions to writing, unlefs
the cafe Ihall admit of an appeal to the King in Council,
and of rendering all fubmifTions to arbitration, a rule of
court ; that the King^s advocate, or attorney, ought to have
the power of bringing inferior officers of juftice before the
Supreme Court ; and individuals, the power of preferring
indi6tments for a6ts of corruption, againft the judges of
the inferior courts, referving to the Governor-general the
right of entering, by the Attorney-general, a noli profequi ;
that the judges of the Supreme Court ought to make an-
nual circuits, and the clerk of it to have the power of fuing
for fines, the amount of which fliould be paid to a receiver
6 appointed

AND TRADE IN THE EAST INDIES. 109

appointed by the Governor-general and Council ; that a CHAP. I>
Coroner (hould be appointed for Calcutta, and in the
principal town of every diftrid, and an Advocate-general
for the King; that hard labour fhould be inftituted as a
punifhment, in place of banifliment ; that the Hindoos
ought to be tried by their laws, and the Mahomedans by
their laws : As the power in the Supreme Court of exer-
cifing controul, in revenue cafes, had fometimes diftrefled
the inhabitants, and impeded the coUeftions ; that therefore
a Supreme Court of Appeal in revenue cafes Ihould be infti-
tuted ; fuch a court ought not to confift of the Governor-
general and Council alone, for then the moft powerful party
would be the judge ; nor of the Governor and Council and
Judges, for then there would be a perpetual diverfity of opi-
nion: but fhould be compofed of feven judges, nominated by
the Governor-general and Council, three of them to be of
council, one of them fele6led from the puifne judges of the
Supreme Court, and three of them, European fubje6ls of the
King. This court ought to fit once every month, or oftcner,
be affifted with the advice of the principal officers of the
Khalfa, decide by a majority of votes, and the fcnior mem-
ber, prefent, have the calling vote. The decrees of this
court to be final, and, after decifion, that it fliould not be
entitled to receive frefli exhibits, or examine new witnefics*.
Tc prevent corruption, adequate falaries ought to be given
to the members of it ; that in petty, civil, or criminal cafes,
between the natives, the jurifdiflion of the Zemindars ought

* In a note u is obferved, that this wouKl be a departure from the Englifli juiil-
prudence without reverting to that of Hindooflan.

no OF THE BRITISH GOVERNMENT

CHAP. L to be refloied to them, leaving to the parties the right of ap-
peal from their decrees, to the Duannee or Foujdary Courts.
That in each dilhici, there ought to be aMofuilel Duannee
Adaulet, to take cognizance of civil cafes, and a Foujdary
Court to judge of crimes and mifdemeanors, and that both
of thefe courts fliould be affifted by the members of the coun-
cil ; that the power of the Darogah fliould be continued
under the controul of the Governor-general ; that the Cut-
wall, or fuperindant of the police, fhould not be permitted
to inflicl punirtiment on European or Armenian fubjc6ls ;
but only have the powei; of fending them before a juftice
of the peace ; that judges, of every defcription, (pending the
fuit) fliould be prohibited from convcrfmg with the parties
out of court, or receiving prefents of any kind ; or having
any concerns in trade ; that they fliould take the oath of
allegiance and of office ; that courts fliould be inftituted
for the recovery of fmall debts; that the interefl: of money
fltiould be legally fixed, and upon an annual fettlement, when
due, that ic fliould be added to the principal fum on open-
ing a new account ; that Sir Elijah Impey's plan for the
publication of the acSt fliould be followed ; that the Court
of Dircdiors fliould be obliged to deliver to the Lords of the
Treafury, exaft and unmutilated copies of all their advices
and difpatches ; for, fmce the Company have become a fpe-
cies of intermediate fovereigns, the Proprietors, in a Gene-
ral Court, cannot be competent judges of the foreign poli-
tical tranfa6lions of their fervants ; that the powers of the
Proprietors fliould be limited to the following, viz. of
fleeting Diicdtors, of making Bye-Laws, and of fet-
tling

AND TRADE IN THE EAST INDIES. nr

tling their Annual Accounts ; that the Diredtors fliould chap. i.
have the qualification of two thoufand pounds flock,
fliould be chofcn annually, and be reduced to fifteen ; that
the King fhould have the power of appointing the Chair-
man and fix of the Directors ; and the Company of ap-
pointing the Deputy Chairman, and the remaining number
of the Direflors.^

Though it was neceflary, in flating the different opi- of the piin-
nions of the fervants of the Company, upon the fyftems Haftincrs and
of government and of iurifdi6lion fuited to our Indian do- Mr.BaineH's

o J plans or go-

minions, to bring the whole under the particular fubiedls vemmcntand

,.,, ., , /1-111 iurildiiition»

which they exammed, and to contrail with them the
opinions which were offered by a man of ability, when he
was digefting them into order, we (hould not furnifh the-
Public with a full review of thefe interefting memoirs, if
fome attention was not paid to Mr. Haftings's plan of 1772..
As a fervant of the Company, he certainly had the beft
opportunities of information : he had paffed through all
the gradations of office, up to the rank of Governor-generaL
In this ftation. he difcovered uncommon a6livity and po-
litical talents. It is for his judges and for poflerity to pro-
nounce whether his meafures were right or wrong.

In a letter from Mr. Haflings and Mr. Barwcll to the
Court of Dire6lors, dated the i8th of January 1776, they
inform them, that they fend them a plan for the better
adminiftration of juftice in the provinces of Bengal, &c.
as they are of opinion, that the late act infringed on

3 the

112 OF THE BRITISH GOVERNMENT

CHAP. I. the rights gTanted by Parliament to the Governor-
general and Council ; and that it had become an im-
pediment to the current bufmefs of the revenue. After
paying a compliment to the moderation and wifdom of
the Judges, they obfervc, that the undefined characters
of the courts which had been eftablilhed, required a re-
form, and then offer the following fyftem.

The principles upon which this plan proceeded were —
That the government in India fhould be made an intire one ;
the powers which it is permitted to exercife lliould be legally
annexed to it ; the di{lin6tions of Nizamut and Duannee
iTiould be abolifhed ; the Britifli fovcreignty, through what-
ever channel it may pafs, fliould be fupreme ; the a(5ts of
Government fhould be fecure againft interruption from
warrants and writs, iffued by the Supreme Court of Ju-
dicature.

Mr. Hastings had flated mofl of thefe principles in Coun-
cil, in Auguft 1772. They were, afterwards, examined and
improved upon, and the Provincial Councils were eftablilhed
in December 1773. In January 1776, he propofed (as has
been already noticed with his explanations) the following
Courts of Juftice for civil cafes, viz. i. The Sudder Duannee
Adaulet, or Superior Court. 2. The Provincial Councils.
3. The Courts of Adaulet Duannee Zillajaut, or Provin-
cial Duannee Courts. 4. The Courts of Adaulet Duannee
MofulTcl, or Subordinate Duannee Courts. In the pre-
ceding comparifon of opinions, the nature of thefe propofed

courts

ANDTPvADE IN THE EAST INDIES. nj

courts has been delineated. He alfo propofed to cftablifh, chap, i.
as Criminal Courts — i. The Nizaraut S udder Adaulct.
9,, The Courts of Foujdarry Adaulet.

To accommodate thefe courts to the aclual fituation of
Hindooftan, Mr. Haftings and Mr. Bar well propofed to give
a fpecies of legiflative power to the Governor-general and
Council together with the chief Juftice and Judges, af-
fembled in the Duannee Court, for the purpofe of forming
fuch rules and ordinances as they might think neceflary
and expedient for the good government of the country,
and the welfare of the natives ; fubje6l:, however, to revifion
by His Majefty, agreeably to the A6t 13th of His reign.
In examining the preceding opinions, the nature of this
legiQative power has been already detailed.

Sir Elijah Impey, by direction of the Council, drew up sir Elijah im-
a bill, with the obje6l: of confolidating thefe judicial and fjjpj.j",
legiflative powers in our Afiatic provinces. Though the tiiem.
grcateft part of the particulars comprehended in this bill,
have already been recited, it may be proper, in this place,
to ftate the principles upon which it was founded, and to
fubjoin the recommendation of it by Mr. Hafl:ings and
Mr. Barwell.

The preamble ftates, that the fole fovereignty of the
Britilh provinces in the Eaft-Indies, at prefent, fubje6t
to the government and controul of the Company, Ihould be
veiled in His Majefty, and his heirs, &c. icferving to the

Q^ Indian

114 OF THE BRITISH GOVERNMENT

CH.\p. r. Indian Princes the rights which they now enjoy, or which
have been fecured to them by treaty with the Company ;
and that the Company fliould retain the privileges which it
exercifes, either under the authority of acts of parliament,
or under its exifting charter. After recapitulating the 13th
of the King, for eftabliiliing a Supreme Court of Judica-
ture, and fpecifyjng the other kinds of jurifdiclion, fuch
as thole of admiralty, &c. already taken notice of, it con-
cludes, that the Supreme Court ftiould have the lame
powers, privileges, and prerogatives which are enjoyed by
His Majefty's Courts of King's Bench in Great-Britain ; and
that for the natives, courts of jufticc in conformity to the
arrangements of Mr. Haftings and Mr. Barwell ought to be
conftituted. The principal deviations, in this bill, from
the whole of the preceding plan, they fay, confift in " the
" jurifdidlion refpeclively afligned to the Provincial Coun-
*' cils, and to the Courts of Adaulet Duannee Zillajaut.
" The former are reftridled to the cognizance of fuch
" caufes only as had an immediate relation to the public
" revenue ; the' latter are intirely freed from dependence
" on, and connection with the Provincial Councils; and
*' inverted with a jurifdiction, in all cafes, which do not
" appertain to the revenue ; and even in the trial of
*' complaints from the Ryots againft the inferior agents
" of the collections, for exadions not warranted by their
*' pottahs or leafcs. For although thefe, as matters of reve-
" nue, fliould be properly cognizable by the Provincial Coun-
*' cils, yet from innumerable inftances of this kind of op-
" prefllon, which, we apprehend, will occur whenever

" the

((

ANDTRADEINTHEEASTINDIES. 115

the Ryots fliall have a refource, provided for their re- CHAP, i.^
drefs, they vi^ould prove too heavy a charge upon the
** Provincial Councils, and encroach too much upon the
*' time, which they ought to befliow on the receipt and
*' management of the larger collecSlions."

** We prefume not, he concludes, to look beyond our own
local knowledge ; but we dare venture to pronounce, that
it will be impoffible to govern the people of this country,
by the fixed rules of law and juftice, under any fyftem, how-
ever judicious, which fliall not have the fandlion of fove-
reign authority, efpecially with courts which are toexercife
a concurrent jurifdi6lion, with the high powers granted by
Parliament to the Supreme Court of Judicature ."*

Though this plan, and the bill which arofe out of it, are inferences
merely articles in the hiflory of opinions refpe6ling India, thPn'hoie of
hints may certainly be drawn from them, which may be ufe- t''e'fop''i'0"s
ful to the public, and to the legiflature, in judging of the
fyftem required for the government of our Eaftern paflef-
fions ; from the comparifon of them the following inferences
may, perhaps, be drawn —

I. It will occur, that the government \\'hich had —tending to
fubfifted in Hindooftan, anterior to, and at the time ons of the go-
when Great Britain obtained its pofrelfions, was a fubjeft f"t"d^"^Bn.
perfedly new to thofc who attempted to decide on it : nor ^iib indi.u

* Letter fioin ]\Ir. Haftings anJ ]Mr. B.irwcU to tlic Dirciftors, dated 30th Ajinl,
1776.

0^2 was

OF TH^ BRITISH GOVERNMENT

CHAP. I.

was the portion of the Mogul fyftem retained by the fub-
vcrtcrs of that empire, lefs a novel and myfterious fubjedl.
Under fuch circumftances, it is eafy to account for the
cppofitc opinions of the mofl; intelHgent fervants of the
Company : one clafs of them recommending the continuance
of the Mogul fyftem, and another, the abolition of the treaties
tinder which we held our fettlemcnts. One clafs of them
jnfifting, that the Zemindars had original and a fpecies of
fovereign power in their diflricts ; another afTerting, that
this power, though often hereditary, was merely official
and contingent ; one clafs of them wifliing to extend the
Englilh laws and law courts, to a people who could not un-
derftand the one, or have confidence in the other ; and thid
liberality, oppofed by the other clafs, from the expediency of
retaining the mixed jurifprudence, to which the natives had
been habituated. On the whole, therefore, it follows, that
the fpecies of government which the Company at firft adopt-
ed, arifing out of the nature of territories, acquired partly
by conqueft, and partly by treaties, was the only one prac-
ticable at the time. Events alone could conciliate the na-
tives to their new mafters ; and experience alone could re-
concile them to inftitutions, the fuperiority of which they
could only perceive, in the fafety and profperity enjoyed
under them. Parliament, therefore, did wifely in the
enquiries which it inftituted to difcover the real ftate of our
Indian pofTeflions, and a6led for the public intereft, in its
refolution to engraft as many of the prejudices of the natives
on the delegated fovereignty of the Company, as circum-

ftances

AND TRADE IN THE EAST INDIES.

117

fiances would admit of; at the fame time, it was proper
to allow to the natives the benefit arifmg from an im-
proving fyftem of government. Had Parliament, inftead of
this prudence, annihilated the power of the Company, the
natives niuft have looked on their recent conquerors, as they
did on Alliverdi, and held them to be the a6lors of a day :
nor could" it have been explained to them, or could they
have been made to comprehend, how a Conqueror could
experience the vicilTitude of being reduced to nothing, by a
written mandate from a diftant land ; or conceive, but that
the power which had fent fuch mandate, might have been
equally fleeting and diflblving in its charadler..

CHAP. I.

2d. It will next occur, from the whole of the opinions on
the general, as well as on the particular qucftions, refpecSt-
ing the government of our Eaftern pofieflions, that the re-
fpe6live rights of the Company, and of the nation, were not,
at this jun6lure, either developed or underftood. The law
queflions, whether the Company, a6ling as a delegated fove-
rcign, could hold the provinces of the Mogul ? Whether
the King, confiftently with his dignity, could afTume the
chara6ter of a feudatory dependant of the Mogul ? Whe-
ther it might not be expedient for the King to chufe fome
native to hold the provinces of the Mogul, but to be ac-
countable to the State ? tended to no end, unlcfs it was to
furnifh fubje6ts for the cafuiftry of the Civilians. At this
jun6ture, the Mogul was a dethroned monarch, maintained

— tending' fo«
fix OLU noti-
ons refpefting
the rights of
Great Britain
to its Ailatic
provinces. —

iiS OF THE BRITISH GOVERNiMENT

^^^'' ^' as the penfioned ally of the Eaft-India Company*. Pri-
vileges obtained from him were abfurd, becaufe he had no
power to fulfil the conditions to which he might bind
himfelf, and yet fuch grants ferved the purpofc of con-
ciliating the natives to our government. Privileges derived
from the inferior princes (fome of the leffer Rajahs excepted)
were (till more unavailing, becaufe all of them were ufurpcrs
of yefterday, and had no other confequence than what arofe
from grants, extorted from their fallen fovereign, or given
to them by the accidents of talents and good fortune, feconded
by that of power. And yet, fuch was the line of thinking
in India, that even privileges obtained from thefe newly
eftabliflied fovereigns, conciliated the natives to the autho-
rity of the Company. All, therefore, that Parliament could
do, was to prefcrve in force as many of the forms of the
fallen empire, conveyed to the Company either in a diredl
or indire6l manner, as were required to maintain that rich
acceflion to the Britilh Empire.

—tending to 3^- It will laflly occur, from the whole of the opinions
*'^. '^^.^'".'^ which we have detailed, on the fcheme of introducinjr the

ot luiudiction ' !^

rct)uired in Englilh laws into Hindooftan, that the plan was rather libe-
ral than prafticable. The laws of a people arife, not from
fcientific perceptions of ditlributive juftice, but from the prin-
ciple of juftice being gradually developed and accommodated

* This, though not esadly a parallel cafe, was fome'.vliat fimilar to the mode of
government adopted in all the new fovcrcignties in Hindoorian. The Rajah ot the
Mahrattahs was but the political engine of the Peifliwah, as the Rajah of Myforc
was of Hyder Ally.

AND TRADE IN THE EAST INDIES. 119

to a6lual life. What nations term their ancient ufages^ are only chap. i.
the frequent application of this principle to events, gradually
forming rules for their praflice. Hence, the partiality of a
people for their ufages, is in fa6t nothing moi-e than the firfl:
rudiments of their public education. Their eftablillied fu-
perftition tends to imprefs the value of fuch rules upon their
minds ; fo that laws become as local as manners. In Eng-
land, it is the hiftory of a law which explains its charadter
and its tendency to promote the intercfts of the people ; and.
it is their acquaintance with this hiftory which gives them
confidence in their Courts of Juftice. To have at once
transfercd the Englifli law to our Indian fubje6ts, would
have been a violent obtrufion of foreign ufages on a really
vanquiflied, though nominally allied people. We have gra-
dually been obliged to ihift, fince the firfl introdudlion of
the Court of Judicature, from Provincial Councils to the for-
mation of Courts of Juftice, proceeding upon the principles
of the laws, to which the natives had been habituated ;
and been compelled to admit the propriety of eftablilliing a
diftinition between the fubjedls, who are under the Britilli,
and under the Native Courts. Even at this improved mo-
ment in the knowledge of Indian affairs, and after we are
better acquainted with the fyftems of Hindoovee and Maho-
medan laws, and with the pra6lice of their Law Courts, it,,
probably, will be found expedient to continue the mode of
improving the judicial power in our Afiatic dominions, ra-
ther by accommodating it to the cuftoms of the natives, than
to make the attempt of fubftituting, at once, the laws of
England in the place of the laws of India,

T20 OF THE BRITISH GOVERNMENT

CHAP. I. At tiie clofe of the war in 1 783, fuch were the impreflions
Ml. Dun- of the public, refpc6ting the adminillration of Indian affairs,
propoiciiin ^y ^^^^ Company, that a general dcfire feemcd to prevail,
•783- for fome mode of regulation for our foreign fcttlements

in Afia, which might be better calculated to render them
cHicicnt parts of the empire ; and that fomc method might
be devifed, by which the proceedings of the Dircvftors flioukl
be made more coincident with thofe of the flatc. Men
of moderation, however, forcfaw, that differences of opi'
nion, upon this fubjcct, might ariie in both houfes of
parliament, and it was to be apprehended that great
oppofition would be given to any bill propofed upon
this national concern. As a plan, however, for Indian
affairs was looked for from thofe particularly, who had
taken an active lliare in conducting the enquiries of the
houfe of commons upon this fubjcct, Mr. Dundas, then His
Majefty's Advocate for Scotland, and who had been chair-
man of one of the committees, came forward with the
following plan, in the form of a bill, for the confideration
of the houfe of commons.

The part In thc preamble, this bill proceeded upon the privileges

rcdlrded^he which the charters of the Eaft-India Company had conveyed

fyrtemofgo- fo thcm, in virtuc of different acts of parliament, and in

fuitcdforour particular, on the regulations fpecified in the 13th of His

poflcffions in i , . ^

India. Majelty.

The firft branch of it regarded the foreign govern-
vients. It fet out with propofing, that there Ihould be ap-
pointed

AND TRADE IN THE EAST INDIES. 121

pointed one Governor-general and Captain-general of all chap, i.^
the Britifh fettlements in India ; that he iliould be veiled
with the fupreme power over the prefidency of Fort Wil-
liam, and over the other prefidencies and fettlements in India,
together with the chief command of all the forces, fubjecSt
only to fuch orders and infl:ru£lions, as he might, from
time to time, receive from the Court of Dirc6lors ; that all
the deeds of this Governor-general and Captain-general,
fhould be certified under the feal of his office. In the
exercife of thefc extenfive powers, however, (except in the
cafes of laying on an embargo, or arrefting fufpecled perfons)
he was to fummon the council, (which was to confift of four
members) to communicate with them, and to hear their opi-
nions on any a6l of hoftility, which he might order, on any
treaty he might alter or conclude ; or, in general, upon
any a6l of government, which he might have in view :
The records of the proceedings of the council were to be
made up by the fecretary, one copy of which was to be
tranfmitted to the Court of Dire6lors, and one to His Ma-
jelly's Principal Secretary of State : All a6ls of Govern-
ment were to be ilTued in the name, and under the feal of
this Governor-general : If any difference of opinion fhould
arife between him and the members of council, the fecretary
was to enter on the records, the opinion or advice of each
member prefent, with the rcafons afTigned for it, fubfcribed
by fuch member, and to tranfmit them, with the records of
council, to the Court of Directors and to His Majefly's
Principal Secretary of State. If the Governor-general Ihould
differ in opinion from a part, or from the whole of the

R council

,22 OF THE BRITISH GOVERNMEN T

CHAP. I. council prefent, then he was, if the cafe would admit of delay,
to adjourn the deliberation for, at leaft, the fpace of twenty-
four hours, to iffue a fummons to each of the members for
their attendance, and, when re-aflcmbled, he was to begin
with reading the queflion, and then to allc the opinions of
the members, bcnjinning with the youngeft. If a majority,
or the whole of the council, flrould ftill differ from him,
upon the fubjecl under difcuffion, and he continue of opinion,
that the mcalure would be for the fafcty of the State, and
for the interefl: of the Company, then he might, after hear-
ing and ordering the opinions of each of the members to be
entered upon the records, take an oath, and declare, that
he, in his confcience, thought the meafure was expedient,
and for the Public intereft. Which being done, the refo-
lution fhould become valid, and he might command it to be
carried into immediate execution : He was then to direct
the fecretary to fend four copies of it, and of the reafons
"urged by the feveral members for or againft it, over land,
by two different meffengers, each of whom was to carry one
copy for the Court of Dire6lors, and one for His Majefly's
Principal Secretary of State : Two copies were alfo to be
fent by an exprefs veffel for the fame purpofe ; and two
ctliers by tlie firft chartered Ihip of the the Company.

The bill, in the next place, propofed, that the Governor-
general fliould have the power of negotiatmg and concluding
treaties, of ordering hoftilitics againft any Indian Prince, and
of defending the poffeflions «.;f Indian ftates, of which the
Company, by treaty, were guarantees; of levying troops, ap-
pointing

AND TRADE IN THE EAST INDIES. 125

pointing commanders, of making war, or concluding peace ; cuw. i.^
fubjedl, however, to fuch orders as, from time to time, he
might receive from the Court of Dire(Slors. Tliat, under
his hand and feal, he might iffue warr^fhts for detaining or
fecuring perfons fufpecled of ilHcit commerce, or of keeping
up a correfpondence with any of the country powers ; but
exceptions were made in favor of His Majefty's commanders
of fhips, and officers under them ; alfo of the members of
council ; of the members of the Supreme Court of Judi-
cature ; of the members of the Sudder Duannee Adaulet
of the Company's fervants in general, and of any licenfed
trader, unlefs on information, by credible witnefles, upon
oath ; that he Ihould have the power to fufpend the
execution of the fentences of the Supreme Court, in
which the puniihment was to be capital, for fuch time, as
he might think proper, or till His Majefty's pleafure (liould
be known ; and, if fuch fentence affecSled a native of India,
he might grant a pardon, abfolutely or conditionally, with
the advice and confent of the Council. That he might
alfo enter a no/i prcfeqiu in a criminal procefs, if carrying
on againft a fervant of the Company for any official act.
To render this lyftem more fimplc, the Governor-general
was to have the fiipreme controuling power in civil and mili-
tary affairs, over the other prefidencies in India, all whofc
acts were to be tranfmitted to him, fubject to his ratification
or rejection. If any commotion Ihould arifc, or mil manage-
ment be difcovered in the fubordinate prefidencies, he was to
be empowered, (taking with him his fcal of office and any
of the mcml)crs of Council he might think fit and the Se-

R- - crctary

124 OF THE BRITISH GOVERNMENT

CHAP. I. crctaiy) to repair to the place, enquire into the caufes of
the commotion or milmanagemcnt, fufpcnd, amove, and
commit to cuflody, fuch perfons as fliould refufe obedience,
and could not find fecurity for quitting the fettlement, and
to appoint others to their offices until the pleafure of the
Directors fhould be known. During the temporary abfencc
of the Governor-general, the adminiftration was to be
veiled in the Council, fubjedl to fuch orders as they iliould.
receive from him.

The bill, in the third place, propofcd, that the Go-
vernor-general and Council Ihould be named in the a6t,
and be amoveable by an order from His Majefty, under
his fign manual, c'ounterfigned by one of his principal Se-
cretaries of State. This order was to extend to the fub-
ordinate prefidencies, and a copy of it fent to the Chair-
man or Deputy Chairman, within fourteen days after
being figned. That in the event of a vacancy, the Court
of Directors were to appoint a fuccefTor to the Governor-
general : the appointment, however, to be fubje6t to
the approbation of His Majefty. That if the Directors
fhould refufe to make fuch appointment, then His Majcfly
was to nominate a pcrfon. In this manner the Governors
and Members of Council, in general, were to be appointed.
That the Directors were to have the power of nominating
perfons, provifionally to the fuperior offices, fuch nomina-
tion to be fubmitted for His Majefty's approbation, within
fcven days after the apjiointmcnt had taken place. None of
the Directors were to be appointed either by His Majefly or by

the

AND TRADE IN THE EAST INDIES. 125

CHAr. L

> „ — ^

the Company, to thefe offices, till fuch time as they (hould
have been out of the direction for the fpace of four years. In
the event of the Court of Directors becomino; dilTatisfied with
any of their Governors or members of Council abroad, that.
they were to be empowered to repreTent the circumflance to
His Majcfty ; and that they were to follow fuch meafures as,
in his royal wifdom, he fliould think fit to prefcribe to them.
Such reprefentations, however, were not to be allowed to be
revifed or refcinded by the Court of Proprietors. That the
fenior member of Council was to be Lieutenant-governor ;
and, in cafe of a vacancy, to act as Governor till another
fliould be appointed, or till he himfelf Ihould be pro-
moted ; tranfmitting always information of the vacancy by
the fpeedieft means. In cafe of a vacancy in the council,
the Governor-general might appoint to it, till the pleafure
of the Directors lliould be known. That upon the arri-
val of the Governor-general, in India, he was to iffue his
proclamation ; then to take an oath to His Majcfly and
to the Company, before the chief juftice or a puifne judge,
and all the members of Council ; and then to be held as
fully inverted with his office. After which, the members of
the Council and the Secretary were to take the fame oaths,
administered to them in his prefence. This new fyflem
was to take effe6l from the time of the arrival of the Gover-
nor-general, and his ifTuino; his proclamation^ '^'^.'^ p^'"''

° 01 of It which

regarded the
, . iri'1'11 11 fitiiation in

The other great branch of this bill legarded the na- whichthena-
tivcs, and proceeded upon the principle of preferving to i,'J"iaccTun^
them their laws, ufagcs, and reliirions. With this objedl '^5'" ''^'^ ^'"•

- ' "^ w J tiili govern-

nient.

ii6 OF THE BRITISH GOVERNMENT

CHA P, ij jt propofed, j?)/?, that a fubordlnate legiflative body (hould
be formed, in which the Governor-general was to a(5t, by
the advice and with the confent of the Council, and of the
Chief Juftice and other Judges of the Supreme Court. That
this fubordinate legiflative body was to enatt fuch rules and
ordinances as they fhould deem to be neceflary and juft,
and for the good government of the Britifh polTefTions ; for
the collection of the revenues ; for aflefiing and levying
fuch taxes upon the houfes and lands of Calcutta as might
be required to maintain the internal police of that place ;
for fixing and recovering the duties on export, import, and
tranfit trade ; for infli6ling and recovering reafonable fines
and forfeitures, &c. Thefe regulations, however, were not
to operate on His Majcfty's natural born fuhje61:s, in any
way repugnant to the laws of England. As intended alfo
for the natives, fuch rules were not to be in oppofition
to the religions, laws, and cuftoms of India. The fanc-
tions annexed to them were not to be capital, for the for-
mer, unlefs they were made lb by the laws of England; nor,
for the latter, unlefs they were fo by the laws of the coun-
try ; and particularly that a Hindoo was not to be deprived
of his caft, unlefs he would have forfeited it by the laws
of Hindooftan. In the enatlment of rules or ordinances,
each member of the legiflative body was to have an a(flive
as well as a deliberative voice. The rule, after having
been propofed, was to undergo three dillcrcnt readings;
then to pafs by the majority of votes, and be approved of
by the Governor-general ; but not to be valid till thirty
days after it had been regiftered in the Supreme Court of

Judi.

AND TRADE IN THE EAST INDIES. 127

Judicature, and till twenty day? after copies of it fliould have CHAP. i.
been made in the Englilh, PeiTian, and Bengal languages ;
and been afHxed in the place where this court was com-
monly held. That the clerk of this court was to tranf-
mit copies of thefe rules to the inferior, civil and cri-
minal courts. To affifl the Governor-general, &c. in form-
ing theie rules, the Roy Royan, Superintendent of the
Khalfa, Chief Canongoe, Chief Pundit, and Chief Moula-
vie, refident at Calcutta, were to be fummoned to the
meeting, to explain and to give advice. That copies of
all fuch rules were to be tranfmitted to the Court of Di-
redtors, the Chairman of which, within fourteen days from
the receipt of the difpatch, was to fend them to His Ma-
jefty for his approbation. Appeals to His Majefty alfo
were to be allowed againfl fuch rules and ordinances within
fixty days ; who, with the advice of his Privy Council,
might declare them to be valid, or to be null and void.
Any fuch regulation was, however, to continue in force
till forty days after its annulment, made on the part
of His Majefty, fhould be publifhed, as the rule had
originally been.

The bill next propofed, that the Governor-general fhould
be allowed a falary of ^(".25,000 per annum, and each of the
Members of Council a falary of ^.10,000 per annum.
Thefe fums were to be in lieu of every other advantage ; for,
the Governor, &c. were to be prohibited from receiving gifts
or prefents ; and were not to be engaged in any but in the
public fervice. The other fervants of the Company were to
4 be

128 OF THE BRITISH GOVERNMENT

CHAP, i.^ te fubjcct to the like conditions, with the exception of fees
paid to lawyers, phyficians, and chaplains. That if any
fervant of the King or Company fhould be proved to have
taken a gift from any Indian Prince, or from the natives,
he was to be made liable to pnnifhment by the Supreme
Court ; and on conviition, to forfeit double the value re-
ceived, one moiety of which was to be paid to the perfon
informing, and the other to the Company. That in particu-
lar, fuch of the fcrvants of the Company who might be em-
ployed in the collection of the revenue, were to be prohibited
from carrying on any private trade on their own account,
under the pain of forfeiting the goods and treble their value.
That the interefl; of money was to be fixed at 12 per cent.
and an offender, againft this regulation, was to forfeit treble
the amount, and the informer was not to be perriiitted to
compound, or to agree with the party againft whom his in-
formation had been lodged. That if any fervant oY the
Company fliould rcfign, or be difmiffcd from the fervice in
India, it lliould not be lawful for him to carry on any com-
merce in India, except for the difpofal of his ftock in hand ;
and if accufed of breach of trufl, upon convi6lion, lliould
be fent home to England, unlefs he could find fecurity to re-
move within a fpecified time ; and no fentcnce of this kind
to be compounded for.

The bill propofed, in the third place, that the fubordi-
nate prefidencies of Madras, Bombay, and Bencoolen, flioukl
each have a Governor and a Council confiding of four mem-
bers. That the Governors of fuch fcttlcmcnts fliould have ^
6 ncga-

AND TRADE IN THE EAST INDIES. 129

negative, but not the power of a6ling againft the majority chap, i.^
of the members of their councils. That they were to be fubje6t
to the fame rules of appointment, fuccefTion and recall, with
the Governor-general, &c. ; and that they, and the Com-
pany's Agents or Minifters at the Indian Courts, were to
carry on a regular correfpondence with the Governor-gene-
ral, and to receive and obey his inflruftions or orders. That
the Governor-general, Councils, and Judges, and the Go-
vernors and Councils of the fubordinate prefidencies were
to have the powers of Juftices of Peace, and of holding
Quarter-fefTions ; and if they lliould be guilty of any of-
fence againft this a6l, it was to be tried in His Majcfty's
Court of King's Bench, in the fame manner as if the oftence
had been committed in Middlefcx. That in cafe an indict-
ment or information, Ihould be lodged in the Court of King's
Bench, of crimes committed in India, upon fending a writ
of mandamus to the Supreme Court of Judicature or to any
Mayor's Court in India, thefe courts were to examine evidence
•viva vocCf to tranfmit the refult, to give copies to the agents
of the parties; and that this evidence was to be held to be
the fame, as if it had been taken in the Court of King's
Bench. That if the mandamus iliould be direfted againft
a member of the Supreme Court, the Governor-general and
Council were to examine the cafe, take the evidence, and
fend the proceedings to England. That in the cafe of fuch
offences being committed in India, as were cognizable by
parliament, the Chancellor, or Speaker of the Houfe of
Commons were to be empowered to ilTue their warrants to
the Governor-general and Council, and Judges, to cx-

S amine

130

CHAP. I.

OF THE BRITISFI GOVERNMENT

amine witnefles, and to make a report, which report was
to be held as legal evidence ; and thefe proceedings were to
remain in force, though parliament iliould be prorogued
or diflblved.

With regard to the tenures of land in Hindooftan, it was
propofed in this bill, that in fo far, as the good govern-
ment of the fettlcments would admit, the Rajahs and Ze-
mindars fliould be re-inftated ; pottahs given to the Ryots
at reafonable and fixed rates, enquiries made and the moft
expedient method adopted for making fuch refloration, fet-
tling the quantum of tribute, modes and days of payment :
and, to protect the Ryots from extortion, the Courts were
to be empowered to inflict punifliments proportionate to the
offence.

The pxrt
which re-
garded the
immediate
fcttlcnient of
the reciprocal
claims of the
Company and
of the native
powers on
each other.

Besides thefe general obje6ls, it w'as farther propofed to
take meafures for fettling the rcfpective claims of the
Company and of the country powers ; in particular, for
adjulling and liquidating the debts of the Nabob of
Arcot and Rajah of Tanjore, in fuch a way as might ena-
ble them to fulnl their engagements with the Company,
and to contribute to the defence of their refpc(ftive ter-
ritories. For thefe ends, the Governor-general and Coun-
cil were to tranfmit the rel'ults of their enquiries, on the
fubje6t of the debts of the Nabob of Arcot and Rajah of
Tanjore, to the Dire6tors, and to His Majcfty's Principal
Secretary of State ; as alfo, accurate lifts of the civil and
military eftablilliments and emoluments of the Company's
fervants in India, that meafures might be taken for re-
trenching

AND TRADE IN THE EAST INDIES.

^31

trenching expenfes, and leftoring profperity to the Com- chap. i.
pany's affairs.

This bill evidently was founded upon the general idea, General ten-
th at during the term of the Company's charter, the admi- piopofed biu.
niftration of their affairs required the a6live interference
of the executive government, and, in this point, the opi-
nions in Parliament, for and againfl the bill feem to agree**
On the one hand, it was allowed, that a government which
fliould have energy and extenfive powers, in India, was re-
quired ; and, on the other, that a refponfibility more de-
fined than in the a6l of the thirteenth of the Kins:, was
neceffary. The principle of the bill, therefore, was al-
lowed to be proper, and the only difference of opinion,
was, refpedling the checks which it might be expedient
to have over this controuling power, in its operation*
Without entering upon queftions which events have fully
explained, it will be fufEcient to obferve, that out of this
plan arofe the fyftem, which has fmce that time been
adopted, in vi^hich the controul of the ftate over Indian
affairs has been eflablilhed ; the fubordination of the other
Prefidencies to that of Bengal, clearly marked out, the
rights of the natives to their lands, &cc. put in the train
of being afcertained, and, ultimately fettled on equitable
terms ; and the points in difpute between the Company, the
Nabob of Arcot, and the Rajah of Tanjore, adjufted.

^ Sec Debates — Parliamentary Regifter, 17S3.

■ S 2 The

132 OF THE BRITISH GOVERNMENT

CHAP. I. TuK expenfes incurred during a long and general war,
in India, having brought the Company's affairs into fuch
diflrefs, that immediate relief was required, Sir Henry
Fletcher, while this bill was pending, moved for leave to
bring in a bill to grant to the Company a further time,
to recover from the lofles, which they had fuftained, and
for a delay in the payment of certain fums due, by them,
to the Public. The plan for the government of India, of
which we have given the outline, was loft in the dilputes
about this more immediate concern.

Mr. Fos's The fame impreffion which had led to the preceding

biiispiopofcd i^^ f^iji continued with the Public, and brought forward

m. 1703. -i ' o

Mr. Fox's bills, for the better regulation of Indian affairs,
domeftic and foreign. We lliall, therefore, take them, in
their order, ftate the principles upon which they proceeded,
the propofitions contained in them, and the arguments ad-
duced by the Company againft their being adopted by the
Legiflature.

Hispropofiti- The bill which had the domejlic arrangement of the Com-
garded'thear- p^uy's affaits for its obje6t, fcts out with the preamble, that
ningement of clifordcrs of an alarminsr nature and macrnitude had lone

the nomcltic "^ => O

aftairsofthc prevailed in the adminiftration of the territorial poffeffions.

Company. -,.,., •it-.oti-

revenues, and commerce or this kingdom in the Eaft-Indies ;
that, in confcquence of them, the natives had been re-
duced to diftrefs, and the public interefts in India, in dan-
ger of being ruined. A remedy, therefore, had become

abfolutely

AND TRADE IN THE EAST INDIES. i-.

abfoliitely neccflary, and the following was propofed, viz. CHAP. i.
That all the powers which were exercifed by the Directors
and Proprietors of the Eaft-India Company fliould be dif-
continued, and the Company no longer entitled to hold Spe-
cial or General Courts ; any charter, ufage, law, or ftatute, to
the contrary, notwithftanding — That, therefore, feven per-
fons, named in the A61:, were to be appointed Diredlors or
Commiflioners, conflituted members of the Company, and
veiled with the powers of the former Dire£lors and
General Courts of Proprietors. — That to thele Diredlors
was to be committed the management of the territorial
poffeiTions, revenues, and commerce of the Eaft-India
Company ; and to enable them to difcharge their duty
with effect, they were to be put in pofTcflion of the lands,
warehoufes, books, records, charters, fhips, goods, mer-
chandizes, money, and fecurities for money belonging to
the Company; and to adminifter the whole for the be-
nefit of the I^roprietors— That they might be enabled to ma-
nage the commerce, nine Aflitlant Directors, named in the
a6t, were to be appointed from among the Proprietors who
fhould be poflefTed of ;(C. 2,000 capital (tock ; thefe Sub-direc-
tors were to be bound, from time to time, (and as often as they
fhould be required) to render an account of their tranfactions
and proceedings to the Directors ; and to obey whatever or-
ders they might receive from them ; That the Dire6tors were
to take an oath, " to be indifferent, and equal to all man-
*' ner of pcrfons, and to give their belt advice and aflifl-
** ance, for the fupport and government of the Company,.
" and for the good management of the territorial poflclhons,
" revenues, and commerce of this kingdom, in the Eaft-

" Lulics.'"

,,4. or THE BRITISH GOVERNMENT

CHAP. 1. " Iiulics."* That the AfTiftant Dire6lors were alfo to take
' an oath, " that they would be indifferent and equal to all

" manner of perfons, and that they would carry on, ma-
" nagc, and improve the trade and commerce of the Eaft-
*'• India Company, to the beft of their Ikill and under-
" il:anding."t That if a vacancy fl-iould happen, among
the Dircdors, by death, refignation, removal, or otherwifc,
it lliould be filled up by his Majefty, by an order under his
fign manual; that if a vacancy lliould take place, among
the Afliftant Diredors, it fhould be filled up by the Pro-
prietors as qualified in the a6t, the thirteenth of the King.
The Proprietors, in this eledion, were not to vote by bal-
lot, but in open court, fpecially fummoned for that pur-
pole, where they were to fubfcribc their names, under the.
name of the perfon for whom they voted. That, if upon
enquiry, five of the Directors fliould, at any meeting, find
that any of the Affiftant Dire6lors had been guilty of neg-
lect or of mifdemeanor, in executing the duties oWiis office, or
of wilful difobedicnce to any of the orders of the Directors,
then they were to be removed and difplaced ; and the Di-
redlors were to enter in their journals their reafons re-
fpccliveiy for fuch removal, figned with their names : That
two of the Dircvflors, named in the a6t, were to the Chair-
man and Deputy Chairman ; and the Deputy was to fucceed
of courfe, in cafe of the death or removal of the Chairman ;
if a vacancy happened in the office of Deputy Chairman,

* See the Aft as printed for the Houfc of Lords.
+ Ibid. 3

the

ANDTRADE IN THEEAST INDIES. , i

the Dire6tors were to fill it up, from amonfr their own chap. i.
number ; that the Chairman and his Deputy were to have
the power of fummoning extraordinary meetings of the
Direftors, and of laying the bufipefs before them; the Di-
reftors were to give their votes openly, and when any of
them jliffentcd from the refolutions of the Board, they were
to enter their reafons on the journals ; that no perfon furnilli-
ing the Company with fliipping, military ftores, or any arti-
cle of inveftment outwards, was to be capable of being either
a Dire6tor, or Affiflant Director ; nor any perfon againft
whom authenticated charges, on the records of the Com-
pany, fliould have been made (within two years before the
time of his nomination) of peculation, or of opprelTion in
India, until the Directors, or three of them, ihould have
examined the charge, and declared the perfon not to have
been guilty ; and, that no fervant of the Company llioiild
be eligible, as Dire6tor, or Afllftant Director, within two
years after his return to Europe. It was propofed far-
ther in fpecifying the duties of the Dire6tors to the
Public, that they were to lay before the Proprietors, in a
General Court, to be for that purpofe affcmbled once in
every fix months, an exa6l (late of the debts and credits of
the Company, the lirfl coft and charges of their inveft-
ment, outward and inward, and the fums in India applicable
to iiiveftment, with an account of the (hipping and of the
produce of the fales, and the ftate of the warchoufes at home
and abroad ; that the Proprietors were not to have the power
of fummoning a General Court more than once in evciy
three months, which court, at the fame time, nuift be af-
fcmbled.

1.6 OF THE BRITISH GOVERNMENT

' J

CHAP. I. fembled, or called, by the Dire6lors, or three of them ; but
it was to be lawful for any nine, or more of the Proprietors,
to apply to the Dire6tors (each of thefe Proprietors being
poflfcfled of £500 capital fjock) tofummon a General Court
within ten days after fuch demand ; or in default of the Di-
rectors, or any of them, refufing to fummon fuch General
Court, that then fuch nine Proprietors, or a greater number
upon ten days notice,to be given in writing, and fixed up in the
Royal Exchange, were to have the power of fummoning and
holding a General Court of Proprietors. That the Di-
re6lors were, twenty days after the commencement of each
Seflion of Parliament, to lay before the Commiflioners of the
Treafury, to be by them laid before Parliament, an account
of the territorial and other revenues of the Company in
India, eftimatcs of the civil, naval, and military cftablilh-
ments there ; an account of the bond and other debts in
India, fpecifying what belongs to each Prefidency ; w^ith a
ftate of the trade as laid before the Proprietors at their laft
General Meeting. The Directors were to have the farther
power of fufpending, difplacing, or appointing perfons to
offices, civil or military, in the fervice of the Company,
either within this kingdom or in India: that when any charge
of corruption, peculation, breach of orders, &c. which (hould
be exhibited before any of the Prefidents and Councils abroad,
was tranfmitted to the Court of Directors, they were within
twenty days after receiving fuch information, to enter on
the examination of the charge; and if they fliould not
think prepcr either to recal the perfon, or to order a pro-
fee ut ion

AND TRADE IN THE EAST INDIES, 137

> '

fecution againft him, they were to enter their reafons, in CHAP. i.
writing, upon their journals, and to proceed in the fame
manner, in complaints made by any of the native Princes,
dependant upon, or under the protection of the Company,
againft their fcrvants abroad.

That if any charge (hould appear upon the Company's
records againft any of their fervants, they were not to be
permitted to return to any part of India, or to be employed in
any office in the fervice of the Company, till the Directors
fhould have made a full and particular examination into the
conduct of fuch perfons, relative to fuch charge ; and if they
fhould permit them to return, they were to enter their rea-
fons upon their journals. That in cafe of any difputes between
the Governors and Councils, or between the fubordinate
branches of the Company's eftabliftiments, the Directors
fhould, within twenty days after receiving official infor-
mation, enter upon an examination and enquiry into the fub-
ject, and either decide on it within three months, or enter
their reafons for delay upon their journals, figned with their
refpective names. That they were to be bound, within three
months after their receipt of the requifition of any of the
prefidencies abroad, relative to any difpute fubfifting among
them, to return an anfwer, opinion, and direction, entering
on their journals their reafons figned with their refpedive
names. That if any Indian Prince fliould complain of a breach
of treaty, or of an injury or wrong done to him, by any of the
Company's civil or military fervants, the Directors were to
examine the cafe as fpeedily as might be, and to do jnftice

T for

138 OF THE BRITISH GOVERNMENT i

«■ .. '

CHAP. I. for fuch breach of treaty, wrong, or grievance ; that
they were not to have the power of puniihing the
breach of any bye-law, unlefs the penalty annexed to it
fliould be approved of by a majority of the Proprietors,
having jT. 1,000 of capital ftock. That three of the
Directors were to form a board, and that the Chair-
man (or Deputy Chairman, in his ablence) was to have
two voices, or the cafting voice. That the Secretary to the
Board of Dire6lors was to fign all difpatclies to the fettlements
abroad, and that the accounts already fpecificd, which were
formerly to be figned by a particular number of Directors,
were now to be figned by three of thefe Directors. That the
Directors and afliftant Directors were to be declared incapable
of holding any other office, in the fervice of the Company, or
any place of profit from the Crown during pleafure. That
the Dire6lors were to be removeable, upon an addrefs of
either of the Houfes of Parliament to the King. Thefe Di-
rc<5lors were not to be difqualified, under the provifion of
the act of the fixth of Queen Anne, from fitting in the Houfe
of Commons. That each of the Afliftant Directors were to
be allowed a falary of ^^.500 per annum, during the time of
their holding the office, and to be difqualified, in confe-
quence of holding it, from fitting in the Houfe of Com-
mons ; and (hould fuch Affiftant Director be elected, and
take his feat, that he ftiould forfeit for every day fo fitting,
jr.500 to the peifon fuing him. That this act was ^o take
effisct, on receiving the Royal Afient, and to continue in force
for four years*.

* Fr«ra the copy of ^Ir. Fox's bill, as printed by the Lords.

Though

AND TRADE IN THE EAST INDIES. 139

Though this propofition for the domejlic regulation of the CHAP. i.

Company's affairs, was intimately connected with that which objeaions

was brought forward for the government of x\^€\x foreign Eaft-Tudil'^

pojfejjions, the arguments which were adduced by the Com- ^^ahlft'thi

pany againft this bill paffing into a law, ought to be propoCtion

ftated apart. a law.

I. The Company admitted, that diforders had prevailed
in their fettlements abroad, which were of an alarming:
nature and magnitude, but faid, that inflead of originating
in the Court of Directors, they might be traced either to the
want of power in that Court to enforce obedience to their
orders, or to the ambition and interefted fchemes of indivi-
duals among their fervants abroad, who knew that the Com-
pany had no power to punifli them, in any other way, except
by difmiffing them from the fervice. That in the year 1767,
the Company had alked to be vefted with the power of pu-
nifhing their fervants abroad, for difobedience of orders, but
it was not thought expedient, at that juncture, to confer it
on them. To their want of power, therefore, to controul the
conduct of their fervants, had been owing the confufion
in their councils abroad, and that animofity among their
fervants, which had worked them up into contending fac-
tions. That the diforders of a public nature, had arifen
from the war in Europe extending to India, for this had
aflfbrded the French an opening for cabal and unfair inter-
ferences, and enabled them to engage the country powers
in a general combination, for the cxpulfion of the Englifli
from their different fettlements. Thefe were facts univer-

T 2 fally

I40

CHAP I.

OF THE BRITISH GOVERNMENT

ially known and admitted. If the war, then, did not origi-
nate with the Company, but in events of which they
were not the authors, the difordcrs which had prevailed in
India during the progrefs of that war could not be wholly
afcribed to them. The enormous debt which they had
been obliged to contract, in confequcnce of this war, might
be an argument for granting them relief, but could not,
furely, be a reafon for depriving them of any of the privi-
leges they enjoyed under their charter.

2. The Company next defended themfelves, by flating,
that it could not be alledged againft them, that they had,
in any degree, ncgle(?led to carry the Eaft-Indian commerce
to its utmoft extent, and produced accounts of their exports,
imports, number and tonnage of their fliips, and duties paid
to the ftate, anterior to the war, and during its continuance,
adding the profpe6ls which peace was now offering to them
ofreftoring their affairs. Whether their fervants had ac-
quired fortunes honeflly or diJ}:oneJlly they held to be out of
the queftion ; if honejlly^ there could be no blame in taking
up money from them, for bills on England, to fupport the
war ; and if dlponejlly^ it could not be fuppofed, during fo
trying an exigency, that they could enter into any exami-
nation of the fad, more particularly, when they had no
other power, than that of difmilTmg the delinquents from
their fervice ; if they had refufed to accept of this money,
it would neceffarily have paffed through foreign companies
to Europe, and indiredtly might have been made a refource

AND TRADE IN THE EAST INDIES. 141

to our enemies. The debt was now contraded, and it mud chap. i.
be paid.

3. The Company pleaded, in the third place, that as a
body corporate, they ought not to be deprived of any part of
their privileges, unlefs they had violated fome of the condi-
tions in their charter ; and even if they had violated thefe con-
ditions, that they ought to be put on their trial ; if a trial
was denied them, then it would eftablilTi as a principle,
that a royal charter, proceeding upon an agreement with
Parliament, might be annulled by another adl of Parlia-
ment ; and that the propcrry ^t fuch body corporate might
be put into the hands of truftees not accountable to its
owners, but to the Public. I'he thirteenth article of the
Bill of Rights had confirmed charters?, as folemnly as it
had done the other lights of Englithmen ; what, therefore,
the fituation of the Ealt-India Company would be, with re-
fpedt to their charter if this bill palTed, might become that
of any other chartered body 111 Britain.

4. The Company argued, in the fourth place, that the
fituation of rhc Aifidant Diieclors, v\'ho were to manao-e
the trade, muft preclude them from that freedom, which
was required to carry it on virji fpirit ; that the new
Directors, though conftituted members of the Company,
were not inquired to be Proprietors, and had not been
bred or cocu domed to commercial afi'airs. To be a
merchant, required fludy and practice ; and though the
truft might be managed with the mofl; pure and patriotic

inten-

142 OF THE BRITISH GOVERNMENT

CHAP. I. intentions, it could not be managed well by perfons un-
acquainted Avith commerce. Should the revenues be af-
fumed by the Public, and a compenfation be given to the
Company, for the remainder of their term, they might then
complain of a hardlliip, but could not of an injuftice ; and
that, at all events, if they were to be held as unfit to manage
their own affairs, and thefe to be put into the hands of
truflces, it would be but reafonable, that thefe truflees>
fliould be made ultimately accountable to the Proprietors.

5. The Company infifled, in the lafl place, that by
putting the management of their affairs into the hands of
the new Dire(5lors, a kind oi fourth ejlaie in the realm
would be formed, able to check the energy of the execu-
tive, or the deliberations of the legiflative branches.
Thefe new Directors, they afferted, would not be under
controul, as the refponfibility was not to be removed from
the Secretary of State, and their continuance in office,
for four years, might give them an undue influence in the
elections for the fuccceding Parliament.

These arguments had the effecl to create an alarm,
which terminated in an opinion, that the propofitions had
not arifen out of a proper view of the chartered rights of
the Company, and that they did not comprehend regula-
tions, calculated to introduce a better fyftem for the admi-
ftration of Indian affairs.

Thb

AND TRADE IN THE EAST INDIES. 143

Company,

The bill which had the arrangement of the Company s fo- chap. i.
reign affairs,, for its obje£l, was introduced with the fol- Hispropofi-

1 • ' 1 r • 1 IT Ml tion which

lowing oblervations, " that great dilorders had prevailed regarded the
*' in the Britifh territorial poffefTions in India, and that orthSlgn
** the laws of this kingdom had not been obeyed, by many 1*^'"" °^ '^^^
*' of the fervants of the Company of Merchants trading to
" the Eaft-Indies." To remedy thcfe evils, the bill propo-
fed to declare ; that there was not, nor had been granted
any privilege or authority, pre-eminence or jurifdi6lion, by
the 13th of His Majefty, to the Governor-general and
Council of Bengal, or to any other perfon, in the fervice
of the Eaft-India Company, which did, or fhould exempt
them from a flrift and faithful obedience to the orders of
the Directors, or of the CommilTioners, to be named
and appointed, under this aft, to govern and manage
the affairs of the United Company. It then propof-
ed to declare, that all the general and fpecial orders of
the Court of Direftors, for regulating the condu61: of the
Governor-general and Council, or of any perfon in the
fervice of the Company, fliould be implicitly obeyed,
until notice Ihould be given, by the Commiffioners, of
any alteration, revocation, or repeal of them. It next
ftates, that the claufe in the a6t of the thirteenth of
His Majefty, had been conftrued to refer to certain forts
and factories only, and not to every part of the pro-
vinces of Bengal, Baliar, and Orifla; but that, it did,
and Ihould be underftood to refer to all the rules, ordi-
nances, and regulations, iffued by the Governor-general
and Council, relative to forts and factories, or other fubor-

^ dinate

,44 OF THE BRITISH GOVERNMENT

CHAP. I. dinatc places, and to extend over whatever clafs or defcrip-
tion of pcrfons thefe ordinances were to operate. That fuch
rules flioLild be regiftered and piiblilhed in the Supreme Court
of Juftice, and the fubftance of them tranflated into the
Perfian and Hindooftan languages, and affixed in fome
proper place, in each and every provincial court within
the provinces of Bengal, &c. or within the territories to
which they related. It farther propofed to declare, that the
powers of the Governor-general and Council, and Prefi-
dents, and Councils, lliould, on no occafion, be delegated
to fuch Governor alone, or to any perfon or perfons what-
foever. And in cafe the Governor, or any other perfon
fhould be employed in the execution of any fpecial commif-
fion, a full report fliould be firft made to the Governor-
general and Council, refpe6lively. The bill then ftates
that all correfpondence fliould, in future, be addrefTed to
the Governor-general and Council, and that all letters from
perfons in offices of truft, addrefled to the Governor-gene-
ral, or any Member of Council, or to their Secretaries, fhould
be laid before the Council, when the fame fhould be received.
The Governor-general was alfo to have the power of pofl-
poning or adjourning anyqueftion, that might come before
the Council, for a certain number of .days. The Governor
and the Council, as well as the Prefidents and Councils,
were to be prohibited from ceding to, or exchanging with
any native prince or flate whatever, any territory which
was in the poffeffion of the United Company, or of any of
the dependent Princes or States, or to accept of any acqui-
fition from them, to the territories of the Company,

4. with-

AND TRADE IN THE EAST INDIES. 145

without orders from the new Board of CommiflTioners. That chap. i._
the Governor-general Ihould not have the power of invad-
ing or entering, with an armed force, into the territory of
any native independent Prince or State in India, except
"upon intelligence (the credibility and importance of which
ihould be allowed by a majority in Council, declared by
them in their minutes, and fubfcribed by each member
compofing fuch majority) that fuch Prince or State was
about to make war on the territories of the Company, or
on the Princes or States dependent upon them. That the
Governor-general and Council, were not to be permitted to
enter into any ofFenfive alliance for the purpofe of dividing
or fharing any country between the Company and any native
Prince, without orders firfl: received from the Commiflioners ;
nor to hire out to any Native State or Prince, any part of
the Company's Britilli or Native troops, nor to enter into
^ny treaty for keeping up a body of fuch troops, in the coun-
try of any independent Prince or State. That none of the
governments were to employ in any office, any perfon, Na-
tive or Britifh, who fhould have been removed from an office
or ftation, for any mifdemeanor, or other offence, without
authority firft obtained from the Commiffioners. That the
Governor, &c. and the Company's fervants in general, were
to be prohibited from renting or letting any farm, or land,
or any property whatever, to any Banyan or Native Steward ;
and if fuch a cafe fhould occur, the farm, &c. was to be
deemed to be for the principal, who was to be obliged to
account for the profits to the Company ; that all monopo-
lies, or rights of pre-emption and preference of any com-

U modities.

146 OF THE BRITISH GOVERNMENT

CHAP. I. modities, in any of the Company's fettlcments, wove to
be declared, contrary to law, and void ; that no debt,
abo\e a fixed amount, incurred by an advance for the
fupport of any manufaiflure, or for the purchafe of mate-
rials ; or to any hufbandman for any raw commodity,
Ihould be recoverable in any court, or by any action or
fuit at law, after a certain time ; nor fliould it be lawful to
imprifon any perfon, whatever, for or by reafon of any fuch
advances. Thatprefents, gratuities, &c. ha\ing been taken
contrary to the true intent of the act, the thirteenth of the
King, and the receipt of therA defended, by pretending that
they were for the ufe of the Company ; it was, therefore,
propofed, that if fuch prelent fliould not have been cor-
ruptly given, to obtain any place, or other object, to which
the perfon giving the fame Ihould not be entitled, it fhould
be redelivered to him, or to his reprefentatives according to
the cuftoms of the country, and that fuch perfon ihould
be entitled to recover the amount by an adtion at law.
If a prefent were corruptly given, to obtain any place,
or other obje6t, relating to the Company's fervice, then
the perfon giving it fhould not be intitled to recover ; but
the amount fliould be recovered for the ufe of the Com-
pany ; if neither the perfon giving, nor the Company,
fhould fue for the amount, then any perfon might fue for
it, and receive it for his own benefit. If any perfon
directly or indire*^ly, Ihould receive prefents from any In-
dian Prince, or native, upon any account or pretext what-
ever, and be clearly convidted thereof, in the Supreme Court
of Calcutta, or Mayor's Court, or Court of competent Ju-

♦ rifdiction

AND TRADE IN THE EAST INDIES. 147

lifdidlion in England, then he fliould be liable to certain chap. i.
penalties*.

The rents paid by landholders to the Company having
been raifcd, lands farmed out at new rates, and ancient far-
mers and proprietors having been difpoflefled, it was propofed,
that all lands, within the provinces of Bengal, Bahar, and
Orifla, or in territories under the adminiftration of the
Company, ihould be deemed to be the eftates of the native
landholders or farmers, who had formerly held them, unlefs
they had been difpofleiTed of fuch lands, by the judgment
of fome competent court, for fome crime, mifdemeanor, or
iiegledt of payment ; and thefe lands were to be held by them,
according to the cuftoms of the country without any molef-
tation or difturbance from the Company or their fervants.
It was, however, to be untlerftood, that this claufe was
not to deprive the Company of the rent or tribute, which
might be due to them from fuch native landholders, or
their defcendants, nor to prevent them from taking any means
confiflent with the laws and ufages of thefe countries, for
recovering or obtaining payment of fuch rent or tribute.
With the object of quieting the minds of the native
Princes, and preventing corrupt pra6tices, on the part of
the Company's fervants, the rents were to be fixed
and permanent, at an amount which had been paid, or
agreed to be paid by the native landholders, in fome pre-

* In the bill, as printed, for tht ufe of the Commons, the penalties to this claufe are
not annexed.

U 2 cedin

14S or THE BRITISH GOV ERN'MENT

CHAP l.^ ccdir.g year to be fpecifietl, and no other charge or payment
was to be exacted. On thel'e terras the farms were to be
reflorcd to the former landholder"^; but if they, or their
heirs, or defccndants, fliould prefer tl;e penfions they had
been accuftomed to receive, in lieu of their lands, the fame
fliould be continued to them without any diminution. It
was further propofed, that the native Princes or States in
India, having the management of their own revenues, but
engaged by treaty to keep up a body of troops for the fer-
vice of the Company, fliould be declared to be under the
protedion of His Majcfly.

As the preamble of this bill had fet forth, that unwar-
rantable adls had been committed in, and relative to
the territories and revenues of the native Princes and
States, the Commiffioners were to be empowered to bring
the Company's fervants, w^ho might be guilty of fuch
a6ls, before courts of juftice, both in India and in Great
Biitain, for trial. None of the Company's fervants, civil
or military, were to be permitted to be agents to, or to
farm the lands of any protected Prince or State in India. If
any fervant of the Company, civil or military, fliould invade,
or make war on the territory of any native power, with-
out having an order, in WTiting, under the hands of
the Governor-general and Council, upon his being con-
victed, before the Supreme Court of Judicature, or Mayor's
Court, or Competent Court, in an inferior fettlement, he
was to be liable to a penalty *. No prote6ted native Prince

* The penalty is not fpecificj ia tie bill.

was

ANDTRADEINTHEEASTINDIES. 149

was to be permitted to have Princes dependent on him or ^^2i^\__^

engaged for payment of tribute, or for furnifhing him with

quotas of troops, otherwife than fuch dependent Princes flood

chargeable, at a period to be fpecificd ; thefe fupphes of

troops w.re not to be required of them, without the orders of

the Governor-general and Council of Bengal, or Prefident

and Council of any other principal fettlement. The fuccef-

fion to the territories of thefe protecled native Princes was

to be regulated, according to the laws of the country, and

to the faith of treaties. No prote6led native Prince was to

be permitted to rent, or to take any leafe of lands from the

Company ; nor were they to be permitted to refide, for more

than a limited time, in any of the Company's fettlements,

unlefs, when expelled from their own dominions, they took

refuge in thof^ of the Company,

None of the Company's fervants, civil or mihtary, were
to be permitted to borrow or lend money, or to farm iands
or revenues, or to be concerned in any tranfadlion of com-
merce, with any prote6ted or other Prince or State, and if
convicted of fuch offence, to be liable to a penalty*. No
prote£led native Prince, or State, was to be allowed to dif-
pofTefs any fubordinatc Prince, Zemindar, or Land-holder,
or to encreafe the rent, or tribute paid by them, beyond
what had been paid at a year to be fpecified. All dilpofleirei
native Princes or Sovereigns were to be reflored. Neither
the Nabob of Arcot, nor the Rajah of Taujore, nor any

* This penalty is not fpecificd* 3,

Other

,5o OF T H E B R I T I S H G O V £ R N M E N T

CHAP. I. other prote6led native Prince in India, were to be permitted
to afTigii or mortgage or pledge, his territories, or the pro-
duce or revenue of them, to any Britilh fubje6t ; and if fuch
affignments had been made, they were to be recovered by fuch
native Prince from the perfon who had received them, or
from his reprefentatives : nor was it to be lawful for any
Britifh fubje6l, to take any kind of payment from a na-
tive Prince, for a debt then due, (except fuch debts had
been confolidated, in a year to be fpccified, allowed by the
Direi?lors, and ordered to be recovered) until proof ihould
be brought to the fatisfaclion of the Commiflloncrs, that
the debt was fairly and bond Jide contracled. The Com-
miflioncrs were enjoined to enquire into the foundations
of the dilputcs between the Nabob of Arcot and the
Rajah of Tanjore, that they might be fettled upon the
bafis of the treaty 1762, and to tranimit orders to that
cfFe<ft to the Governor-general and Council, and to the
Prefident and Council of Fort St. George. The Polygars
were to be reflored. The controuling power of the Gover-
nor-general, &c. over the other Prefidencies, confercd by
the thirteenth of the King, was to be confirmed, and to ex-
tend to all negociations and cafes whatever, with powers to
fufpend the members of thefe Prefidencies, and to tranfmit
the cafe, with the reafons, to the Commifhoncrs. Even,
in a cafe, where a doubt might aiife, refpefting the ex-
tent of this power, the fubordinate Prefidencies were to fub-
mit to it ; a refervation, however, was made in favor of
Madras and Bombay, in the event either of hoftilities being
commenced by the Mahrattahs, or other neighbouring na-
tions,

ANDTRADEINTHEEAST INDIES. ir

tions, or of imminent danger being apprehentled from them. chap. t.
In fuch cafes, powers were to be given to thefe Frefidencics to
commence hoftiiities, or to make alliances witii Indian
Princes, for the purpofcs of warding off the d?.nger ; but even
in fuch event, arefervation was to be made, that aliiancesfo
formed (hould be approved of by the Governor-geuerHl and
Council. No fervant of the Company, from the Governor-
general downwards, nor any Agent of the Company, nor the
Agent of any native Prince was to be eligible as a Member
of Parliament, 'till a certain fpecified time after he had
quitted the Company's fervice, or 'till fuch time as it fhould
be declared that no profecution could be commenced againfl:
him. If fuch profecution had been commenced, it was
to be terminated in a limited time, unlefs it Ihould ap-
pear, that the delay had been at the requeft, or through
the default of the party profecuted. All crimes and
offences againfl; this a<5t, were to be matters of profecu-
tion in the Supreme Court of Calcutta, or in the Mayor's
Court, or in the Court of King's Bench, or in any court in
this kingdom, which might be efl:ablillied for the cogni-
zance of any fuch crimes or offences committed in India ;
and, in cafes where the punilliment fliould not be fpecified by
this a6l, the courts in which the conviction fhould take
place, were to have the power of appointing fuch fine or
imprifonmcnt, or both, as they might think proper (the
utmofl: extent of Avhich, however, was to be fpecified), and
they might fuperadd the fentence of incapacity of ferving
the United Company.

i5i OF THE BRITISH GOVERNMENT

CHAP. I.

01>|Cflioil5

As it fccmcd proper, when bringing under review the
propofitions, which regarded the domcflic arrangement of
niiife by the tlic Company's affairs, to ftate the objc6lions which the
Conijiilny"* Company made to their pafling into a law, the fame method
;ir,3ir.a tiufc may be followed in flatinii thofc which they offered acainlt
I'aiii.ig iiuoa the propofcd adminiltration of their foreign affairs.

I. The Company, in the firft place, admitted, (notwith-
flanding all the regulations in the A6t, the thirteenth of the
King,) that ffill numerous defedts might be difcovered in
the exifling fyftem of their foreign governments in India;
but maintained at the fame time, that thefc evils could
only be remedied, during the period of their charter, by new
and more efficient regulations ; and to thefe, they would
be ready to pay the moft implicit obedience. However pro-
per, they contended, the propofed fyftem might be, upon
the fuppofitions, that our Indian provinces had been
acquired by an abfolute conqueft, and not obtained by
treaties founded on fuccefs in war ; or upon the fuppofi-
tion, that the provinces were inhabited by colonies fent
from this country ; it certainly would be inexpedient, if not
impracticable, to eflabliili it, when the a6lual relation of
Great Britain to the natives of India, was taken into con-
Cderation.

If the armies of the Eaft-India Company had gained vic-
tories, their foreign governments had found it expedient to

pntcr into the moft folcmn treaties with the nominal and

fubfi fling

AND TRADE IN THE EAST INDIES. 153

fubfifting powers in India ; and had not only in thefe trea- chap, i.^
ties, but by their fubfequent condu6t, pledged the honor
and faith of the Britifli nation, to maintain the eftabliflied
fyflem of Mogul government, and to preferve their ancient
inftitutions to the natives. Some of the Sovereigns, as the
Mogul himfelf, had nothing to convey to us, but the pre-
judices of the people ; others of them had diftri6ls to
yield to us, and others of them had Sovereignties
which they had lately affumed or ufurped, to participate
and to divide with us. Though the fabric of the Mogul
government had fallen, ftill the powers of all thefe defcrip-
tions were (heltering themfelves among its venerable ruins,
and, with filent, but watchful feelings, looking upon them
as ramparts, behind which, lliould we do more than make
them our tributaries, they were ready to expire. Would it
then (faid the Company) be prudent to force upon na-
tives of India afyftem which they could confider in no other
light, than as didtated by a conqueror ? and would it be prac-
ticable, both to allow their ancient forms to remain, and
yet to fubjedt them to foreign inftitutions, which, how-
ever excellent in themfelves, they could not underftand ?
This fyftcm, they aflerted, was to make the ordinances and
regulations of the Governor-general and Council, after hav-
ing been tranflated into the Perfian and Hindoovee lan-
guages, the fupreme law for the natives *; it went to pro-
hibit the dependeiit native Princes from levying duties be-

* See claufes 4th aad ;th.

X yond

154 OF THE BRITISH GOVERNMENT

CHAP, i.^ yond a fixed amount, or to farm any land for more than
the f-jin it had been let for at fomc preceding period*; it
was to controul thcfe dependent native Princes in the ex-
ercife of their authority over their own inferior depen-
dents, and yet it was to make the Zemindars and Polygars,
in a meafure, independent of their fuperiors;t it was to pro-
hibit the native Powers to affign any territory, or produce,
or revenue from it, in payment of debts to BritiiTi fubjects ; j
and not to allow them to refide in a Britilh province, unlefs
driven from their own dominions, they came to take refuge
in ours ;§ it was to prohibit the dependent native Princes
from making offenfive or defenfive alliances with other na-
tive Princes, or from ceding pofl'cffions to, or receiving
pofleflions from the Company, without orders from Eng-
land, and it was to preclude the native dependent Princes
from difpofing of their fovercignties by will, according to
the cuftoms of the country ||: It was, in one word, they
added, to retain the names and forms of the Mogul go-
vernment, and yet totally to alter its Ipirit and arrange-
ments.

Upon this fubjedl of foreign government, the Company
farther argued againft the general tendency of thefe pro-
pofitions ; that this fyftem would place the Zemindars in a
fituation to make an immediate refiftance to the native

Sec claufe 2Stlj. f See claufcs 23d, and 25th.

J Claufe 26th. § Claufe 34th. || Claufcs 8th, 9th, 14, ij, 23d.

Princes

AND TRADE IN THE EAST INDIES. 135

Princes their fuperiors; and, in a fliort time, perhaps, Chap. i.
enable them ^o attack the Company : It was to give an
apparently exccnfive power to the Governor-gem ral, and
yet, in the event of war, apj^earing ncccflary, to allow
the council, to clogg or Itop the wheels oi" his adminiftra-
tion : It was to vcfl the fuboidinate prefidents with like
powers, and yet to introduce refervations in whatever trea-
ties they might conclude, which, upon all occafions, would
have rendered the very entrance upon thefe treaties im-
pra£licable.t

2. The Company, in the fecond place, obje6led to thefc
propofitions ; that the fyftem which would arife out of
them, would render the executive powers given to the
Governor-general and Council, and Prefidents and Coun-
cils, inefficient; and the commercial truft repofed in the
affiftant Dire6lors and Proprietors, nominal. It was to pro-
hibit them from keeping up, or hiring out any Britiih or
native troops to ferve in the countries of the independent
Princes; without the confent of the Commiflioners ;|, and
thus to leave the impreffions made upon the minds of the
inhabitants, by our firfl conquefts, as the fole means of jire-
ferving their fubordination to us, or their adherence to the
moft folemn treaties. It was to check the Court of Pro-
prietors in the exercifing of their judgment in any com-

f Claufcs 3 id, 33d, 34th, 3Sth.
X Claufe gtk

X z mercial

OF THE BRITISH GOVERNMENT

"icrcial plans, which might l-e offered to them, and to
alter even the line of conducting bufinefs with the Indian
maniifat'T:iirer , and thus, give an opportunity to the
ether European companies to participate in a trade, of
which England had, now, almoft an exclufive pof-
feflion.*

3. The Company, in the laft place, objefled ; that their
fervants were to be divefted of a part of their rights as
Britiih fubje6ls. By this fyftem, thefe fervjvnts might,
upon accuiation, be tried for crimes committed in India,
though thefe crimes were charged to have been done out
of the Company's limits ; and yet the kind of evidence
which was to acquit or to convidl them, was not fpeci-
fied ;t they were to be excluded from a feat in parliament,
till they had been at home a fufficient time to perform a
moral quarantine, though not prohibited from having a
vote on the ele6lion of a member of Parliament^. Such
circumftances would, in future, render the fervice of the
Eaft-India Company diflionourable ; though, in its annals
would be found fome of the moft diftinguiflied foldiers of
the eighteenth century.

Effeaofthefc WHETHER thefe obje6lions to the propofitions contained

objeftions jj^ |^q|.|^ ^^le bills, and whether the reafonings in fup-

upon the ' o i

PubUcopi. port of them were well or ill founded, time has enabled the

nion.

* Claufe 12. t Claufe 21.

* Claufe 36, 37.

Public

AND TRADE IN THE EAST INDIES. 157

CHAP. I.

*■ n o ■ , .;

Public to judge. At the period, however, when they were
made, they had their effect, as both bills were laid afide.
The rife and tendency may eafilybe accounted for, from the
general impreflion which the Public at that time felt, that
ffrong and decifive meafures were required in the admini-
Ilration of our Indian affairs.

A VERY fliort time only had elanfed, when a plan was Mr. Pin's

, , . ~ bill propoled

brought forward by Mr. Pitt, with the general object of in 17S+.
continuing to the Company the rights which they held
under their charter; and, at the fame time, of intro-
ducing fuch regulations as lliould more directly connect
the adminiftration of Indian affairs with the executive
government. The propofitions comprehended in his plan,
are i^ Produced with the obfervation, that they were in-
tended for the better government and fecurity of the
territorial poflc-lTions of this kingdom, in the Eaft-Indies.
For this purpofe he propofcd, that a Board of Commif-
fioners for the ofFaus of India fhould be eitabliflied, to
confif' of His Majefly's Principal Secretary of State for the
home deparrmcnt, the Chancellor of the Exchequer, and
a certaivi number of the Privy Coujicil, removeable at His
Majeffy's pleafure : of this Board the Secretary of State fhould
be prclldent, in his abfence the Chancellor of the Ex-
chequer, or, in the abfence of both, the fenior Com-
miflicntr; that the I'refident fliould, upon a divifion, have
the cafting vote ; that this Board ihould have full authority
and power, from time to time, to check, fuperintend,
4 and

15^ OF THE BRITISH GOVERNMENT

fiiAP. I. j^iitl controul, all act?, operations, and concerns, relating
to the civil and military government, or revenues of the
territories and pofrcfhons of the Eaft-Inuia Company ; that
it Ihould be attended by a fecretary, to be named by the
Secretary of State, and fubje6l to difmilTion at the plea-
fure of the Board ; that the duties of this fecretary (hould
be, to enter on the records all proceedings whatever of
the Board ; that the Cominiflioners fliould take an oath
to " give their befl advice and afiiflance for the good
*' government of the Britifli poflefllons in the Eaft-In-
" dies; and to execute the feveral powers and trufts
'• repofed in them, according to the beft of their fkiU
" and judgment, without favor or afFedlion, prejudice or
" malice, to any perfon whatfoever." That the Com-
miflioners Mere to be informed, by the Directors, of all the
tranfa6lions of the Company, ia refpedl to the management
of their concerns in the Eafl-Indies ; to have accefs to all
papers, and to be furnillied with fuch extrafls or copies,
as they might from time to time require. That the
Directors were to fnrnifh to the CommifTioncrs, copies of
their minutes, orders, and refolutions ; and copies of the
orders and proceedings of the general and fpecial courts
of Proprietors, within a certain number of days after the
holding of fuch courts, They were alfo to furnilh the
Board with copies of all difpatches received from their
fervants in India, and with copies of all letters, orders,
and inftru<5lions relating to the civil or military govern-
ment, or revenues of the Britifli pofTcflions, propofed

, to

AND TRADE IN THE EAST INDIE?. is<t

to be fent either to His Majefty's or tlic Company's iervants Ciiap. i.
in the Eaft-Indies, a certain number of days (to be fpe-
cified) before fending off thefe difpatches. That the Di-
rectors were to be governed and bound by fuch orders as
tliey Ihould receive from the Board, touching the civil and
military government and revenues in India. That the Com-
miflioners were alfo, within a fpecified time, to fignify their
approbation of difpatches propofed by the Directors, or to
affign the reafons of their difopprobation ; and that the Direc-
tors were to fend off the orders and inltruflions, fo approved
or amended, to their fervants in India. No orders or in-
ftru6lions were to be difpatched, by the Dire6lors, to India,
until they had been communicated to the Board. If the
Board lliould at any time fend any orders which, ia
the opinion of the Dire6lors, did not relate to the civil
or military government, or to the revenues, that then
they might apply to His Majcfty in council, vvhofe deci-
fion was to be final and conclufive.

That, in the event of a vacancy in the Council of Fort
William, the Directors fhould not fill it up; but, after this
bill had pafTed, the fupreme government fhould confift of
a Governor-general, and a fpecified number of counfellors
only ; and in like manner the prefidencies and fcttle-
ments of Fort St. George and of Bombay. That the
Governor- general and Prefidents ftiould be in the nomi-
nation of tlifi Court of Dire6lors, fubje6l to the approba-
tion of His Majefty. If fuch approbation fhould not be
given, then the Court of Directors fhould proceed to no-
minate

,6o OF THE BRITISH GOVERNMENI

CHAP. I. rniiiate and appoint fomc other perfon to thefe offices. If,
•within a time to be fpecified, the Court of Dire1:ors ihonld
not fupply fuch vacancies ; *hat then His Majefty, under
his fign manual ihould have the power of nominating and
appointing to them. That His Majefty fliould have the
power of nominating and appointing the commanders in
chief in the different prefidencics and fettlcments, or of
appointing fucccflbrs to them, and alfo the power to re-
move or recall the Governor-general, or any member of
council, or the governors and members of council of the
fubordinate prefidencies, fignifying the fame to the Court
of Dire6lors, to the intent that a new nomination might
take place. That the commanders in chief in the prefi-
dency of Fort William, and in the f<ittlements of Fort St.
George and Bombay, fhould have a voice and precedence
in council, next after the Governor-general and Prefidents ;
that in the event of a refignation of the governors, mem-
bers of council, or commanders in chief, it lliould not be
deemed to be legal or valid, unlcfs made by an indrument in
writing, under the hand and feal of office of the perfon
refigning.

That no order or rcfolution of the Court of Pro-
prietors fliould be available, to revoke or refcind any
order of the Directors, after fuch order fliall have received
His Majefly's approbation. That all claules in preceding
a6ls of Parliament, or charters of the Company, contrary
to the propofitions in this bill, fliould be difcontinucd, and

that

AND TRADE IN T H P: EAST INDIES. i6i

that this a£t fliould be in force for a number of years, to chap. i.
be fpecified.*

As the propofitions in this bill originated in refolntions Objcaious
which had been approved of by the Court of Proprietors, pairing into
no objections were made to it by the Company. It left * '^"'
their commerce entirely under their own management, and
introduced only a controul over whatever refolutions they
might take refpecting the civil and military powers in In-
dia, and the management of a revenue that was connected
with their trade. The only objedlions which were offered
to it were, that the plan in itfelf would be inefficient, as it
left the whole power in the hands of the Company's fer-
vants abroad ; that it had made no provifion for the nativ'es,
and in particular, none for refloring their pofTeffions to the
Zemindars ; and that it threw too great a degree of influence
into the lianas of the executive power, by giving to it the
right of appointing to the firft military, and of approving
the appointments to the firft civil offices.

In anfwer to thefe objections, it was faid, that it was Anfwtrs
impoffible to give a greater degree of efficiency to the "^'^^ ^^
foreign governments, without infringing on the privileges
which the Company held under their charter, and that all
that was pra6ticable, \V2,s regulation, not a newfyjlem; that
with refpe6t to the tenures of the Zemindars, we were not,
as yet, lufficiently apprized of the nature of them, to pre-

* Sec the bill as printed for the ufe of the Commom.

Y tend

i62 OF THE BRITISH GOVERNMENT

CHAP. L tgfjj to lay down any abfolute rule ; and that an enquiry
was intended to be inftituted for that end, the refult of
which would lead to a bill for finally arranging their claims.
That fo far from throwing an unconftitutional influence
into the hands of the crown, it gave no more than was
abfolutely necelTary for the public fafety : for, it ought to
be recollected that, it left the patronage in the Com-
pany, provided they exercifed it in a manner confonant
to their chartered rights, and only veiled the Kiiig
with authority to delegate the chief military power for de-
fending the Britilli poffelTions, to perfons whom, in his
wifdom, he might think the beft qualified to difcharge that
important truft.

Effea of the Though the pronofitions contained in this bill were

whole on the _ ' '

Public opi- laid afide by the Commons, and though the reafonings
upon them are now only of importance, in fo far as they
may enable the public to form a broad and permanent
fyflem for Indian affairs, they had the eff^ecSt to eftablilh
the principles ; that an agreement made with Parliament,
for a valuable confideration given to the public, upon
which a charter had been granted by the King, transfers
real rights to the holders,- which mufl: continue to be
good, and cannot be taken away, unlefs the conditions
upon which the contract had proceeded fliould have been
violated; that an acceffory to the property, which fuch a
charter had conveyed, muft continue with the holders of

that

AND TRADE IN THE EAST INDIES. 165

that charter during their term ; but if fuch acceffory fhould cha p, i.
be territory, whether acquired by treaty or by conqueft, it is,
by the laws of this reahn, the property of the pubhc, and
the holders of it, in their adminiftration of fuch property,
may be placed under the controul of the executive power,
refponfible to Parliament.*

* Parliamentary Regifter 1783-4. vol. 12, p. 637.

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH I N D I A, 8cc,

CHAP. II.

REVIEW OF THE MEMOIRS AND PLANS, FOR THE FUTURE
ADMINISTRATION OF THE BRITISH POSSESSIONS IN INDIA,
AND REGULATION OF THE TRADE TO THE EAST- INDIES,
WHICH HAVE BEEN PROPOSED, SINCE THE ESTABLISHMENT
OF THE BOARD OF COMMISSIONERS FOR THE AFFAIRS OF
INDIA.

CONTENTS.

AbJlraH of the A£l 1784, ejlablijinng the prefent Regulations under
which Indian Affairs are adminijlered. — Alterations and Im-
provements introduced by fubfequent Adls — Various Memoirs

fuggepd

i66 OF THE BRITISH GOVERNMENT

fuggejled for improv'mg this Syftem. — Mode of arranging
them — Principles admitted in all of them.— Previous ^ejlion
refpeSling the Rights of the Company as temporary^ and in per-
petuity. — Opinions fuggejled refpe£iir,g the Expediency of em-
bracing a new Syftem of Indian Affairs. — Application of the
preceding Principles to the Eftablifment of a Plan of Indian
Government conncSJed with Trade. Firfi Objeclion to the Adop-
tion of this Plan, arifngfrom the fubfifling relation between the
controuling Power and the Directors, with the reafoning offered to
remove it. — Second Objettion, arifing from the Difficulty of
deviling a Mode of Government , after the Relation of the Trade,
with the Revenues, ffould be diffblved; ivith the Reafonings
offered to remove it. — Third Obje^ion, arifing from the Diffi-
culty of arranging the Patronage, with the Reafonings offered
to remove it. — Fourth ObjeSlion, arifing from the adlual State of
the Company's Debt, with the Expedients fuggefed to remove
it. — Meafures recommended to be taken by the Company, and the
State, for carrying this Plan of Government into Effect. — Appli-
cation of the Principles upon which this Plan -was founded, to the
future Regulation of the Trade to the Eaf -Indies. — General
CharaEiers of this Trade ; — particular Character of the Indian
Trade ; — Firf ObjeSlion to this Plan, arifing from the Check it
might give to the prcfent Exports of Britiff Manufactures by
the India Company ; with the Reafonings offered to remove this
ObjeSfion. — Second ObjeBion, arfing from the Injury which the
Britip Manufactures, that depend on the Raw Materials im-
ported by the Company, might fujlain, if their Imports Jkould be

* checked I

AND TRADE IN THE EAST INDIES. 167

checked', ivith. the Me a fur es by which it was propofed, to
remove the force of this ObjeSlion. — Third QbjeSlion^ arijing from
an apprehended Lofs of theprefent Revenue, paid to the Public by
the Company; with the Meafiires propofcd for fecuring to it the
fame Amount — Scheme for continuing the exclufive Privilege of
the Company to the Trade to China ; — Reafons for embracing
this Scheme, ariJing from the 'Mature of the 'Trade, and
from the Character of the Chinefe ; — from the Injury which
the Britifh Trade to China might fufain, if the "Efforts making
by the Company, to render the Circuit of their Trade wider ^
fhould be fopped. — Conclufion for a Monopoly in the China
Trade. — Plan propofed to be fubmitted tz Parliament, for the
Efabllfment of thefe Syjlems of Government and of Trade, —
Principles upon •which this Plan proceeded \ — Propoftions com-
prehended in it ; — Opinion fug gejled in the conclufon of the Me-
moir. — Application of thefe Principles to a propofed Syjlcm of
Revenue and Finance', — general ObjeSl of this Plan.'—AbfraSl
of the Amount of the Revenues at home and abroad as ap-
plied to the Claims of the Company on the Public. — Subfiance
of the Obfervations made on the Amount of the Revenue at
home; — Opinions of the Authors on this Subject. — Remedies
propofed by them to remove the Difficulties which might
occur in the fnal Arrangement of their Plan. — Abjlra£l of the
Amount of the Revenues abroad, as applicable to the Claims of
the Company on the Public. — EjVnnated Extent of thefe Claims —
Refult of the Whole of thefe Obfervations, fuggejii?ig ; — Fir/i,
a Doubt refpcBling the Propriety of feparating the Revenue

from

^68 OF THE BRITISfl GOVERNMENT

from the Trade ; — Second, a Doubt refpe£ling the Effect
of this Separation on the Conflitution of the Britip Go-
vernment ; — Third, a Doubt refpeSling the future Prof
perity of the Trade, if f if ted from the prefent Plan ; (Con-
fequence arifing from examining the Foundations of this Lift
Doubt;) — Fourth, a Doubt whether, upon this Plan, the Debts
of the Company could be difcharged, and the cxpedled Com-
fenfation given ? — Termination of thefe Doubts in a Plan for
vefing the State with the Territories, and leaving the Trade,
under an exclufive Privilege, to the Company. — Preliminary
Sluefion refpedling the Buildings which would be required for
Government, and ihofe which muf be retained for the Trade,
with the Anfwer. — Remark upon the Anfwer given to this
^efion. — Second ^ejlion refpecting the Sum which ^vould be
required to purchafe thefe Buildings from the 'Company, with
the Anfwer. — Third ^eliion rcfpedling the Sum which the
Company would afh, as the Value of their Military Stores, with
the Anfwer. Fourth ^eftion refpeSling the Offices to be held
under Government, and under the Company, with the Anfwer, —
Remark on this Anfwer. — Fifth ^lefion, refpcciing the Num^
ber of Civil and Military Supernumeraries, with the Anfwer. —
The Refult of thefe Enquiries was, that tbis Plan, in the
prefent Circumftances, was impradli cable. — The laf Plan, which
has been propofed, was, to renew the Company^ s Charter,
and to render the controuUng Power more ejicient. — General
Reafons affigned for adopting it. — Variations from the pre-
fent Syfem propofed, viz. — To nezv model the Court of Direc-
tors ; — to open the export Trade to India ; — to new model the
' Army ;

ANDTRADEINTHEEASTINDIES. 169

Army ; to fix and define-, mo'reprecifely tbePowers of the India Com- CiiAP. Ti.

m'lfiloners, a7%d of the Court oj Directors. — Remarks on the probable

Effect ivhich thefe Alterations -would have on the Rcfponfibility

of the Court of Directors ; and^ on the propofed Duties of this

Court. — Remarks on the propofiti on for opening the Export Trade

to India. — Remarks on the propofed Arrangement of the Army. —

Remarks on the propofed Cotwection bciivcen the Executive

Government, and the Court of Directors, as it might affect

the Cofifiilution of Great-Britain, or the Inter efis of the Coni'

pany. — The End propofed in this Review of PLvis,

As the public attention had been direfted to the confideia- Abfl'-aftof

• , . the Act 1784,

tion of Indian affairs, by the fucceflive plans which had eftabiiiiiin-
been offered to the Lcgillature, for introducing order and regulations,
fyftem into the adminiftration of the Afiatic interefts of Great y'^K"'" "»-'""''

J incuan attairs

Britain, one of the firft afts which pafled in the Parliament ^''^ -''^minif-

' _ -i tcred.

that met in May 1784, was, " An h&. for the better regu-
*' lation and management of the affairs of the Eaft-India
" Company and of the Britilh Poffeffions in India, and for
*' eftablilTiing a Court of Judicature, for the more fpeedy
" and effeftual trial of perfons accufed of offences com-
" mitted in the Eafl-Indies."

As this A61, with feme few amendments, conflitutcs
the prefent fyftem of Indian affairs, it may be proper to

Z point

\fo OF TPIE BRITISH GOVERNMENT

CHAP. 11. point out the principle upon which it pioceeJeJ, and the
regulations which it cftablilhed, that we may moie fully
diicover the I'ources of thofe improvements which have
been fuggeflcd as neceffary and expedient, when the fubject
of the Company's Charter fliall come under the review
of theLegiflaturc.

The principle upon which this bill proceeded, was, that
during the remaining years of the Company's Charter,
Parliament, for the general advantage of the empire, fliould
have the power of fuperintending and controuling the ma-
nagement of their all'airs in ti.e Eaft-Indies, but leave
with the Directors and the Proprietors the enjoyment of
their exifting privileges. With this object, His Majefly is
empowered to appoint fix Privy Counfellors to be Commif-
fioners for the affairs of India, of which, one of the Secre-
taries of State is Prefident, and in his abfence, the Chan-
cellor of the Exchequer, and in the abfence of both, the
fenior of the Commiffioners, according to the date of his
appointment. Three of the Commiflioners conftitute a board.
This board is empowered to fuperintend, direft, and controul
all ads, operations, and concerns, relating to the civil or mi-
litary government, or revenues of the Britifh territorial pof-
feflions in the Eafl-Indies. The Commiffioners hold their ap-
pointments during His Majefty's pleafure. The Secretaries
and other officers of this board, are in the nomination of the
Prefident. The Commiffioners take an oath to "give their
" beft advice and afliflance for the good government of the
" Britifh poffeflions in the Eaft-Indics ; and to execute the

i feveral

AND TRADE IN THE EAST INDIES. 171

*' feveral trufts repofed in them, according to the beft of cu.w. 11.
*' their fkill and judgment, without favor or affection, pre-
** judice or malice, to any perfon whatfoever." The offi-
cers of the board are to take fuch oath of iecrecy as the Com-
miflioners ihall direft. The acceptance of this truft does not
difquahfy the Commiffioners, or tiie Secretary, from being
Members of Parhament. They havui;:; accefs to all the records
and papers belonging to the Eaft-lndia Company ; and the
Court of Diredlors are required to deliver tc ^hem copieb of
all refolutions, oiders, minutes and proceedings of their own,
or of the Court of Proprietors, in fo far as relates to the
civil or military government and revenues of the Britilh
territorial pofTeffions in India, within eight days after the
holding of fuch courts ; copies alfo of all the difpatches
which the Dire6lors, or the fecret Committee may receive
from their fervants '.n the Eafl: -Indies, are fent to the Com-
miffioners immediately after the receipt of them. Copies in
like manner of all letters, orders and inflruftions propofed to
be fent to their fervants in India, are laid before the board,
who are to return the fame within fourteen days, fubfcribed
by three of the members, fignifying their approbation, or
fuch alterations as they think expedient, with their reafons
for fuch alterations. Thefe orders are forthwith diipatched,
in their amended and approved form, to the Company's
fervants in India, who are to pay obedience to them. The
Court of Dire£tors are not to lend any orders to their fer-
vants in India, without the approbation of the Commif-
fioners. And if the Commiffioners fend orders or inflruc-
tions to be uilpatched for India, or alter thofe propofed by
the Diredtors, fuch orders are to be forwarded forthwith,

Z 2 unlefs

172 OF THE BRITISH GOVERN MExNT

^CHAr. II. unlcfs, upon arcprefcntation, the board fliall think.it expe-
dient to vary or to change fuch inflrudions. It is rcferved,
however, to the Dirc6lors, on receiving orders not connect-
ed with the civil and military government and revenues,
to appeal to His Majefly in Council. In all matters
requiring fecrecy, fuch as levying war or making peace,
treating or negotiating with the native Princes or States
of India, the orders of the Board may be addrelfcd to the
fecret Committee of the Court of Dire6lors, who, without
difclofing them to the Court, are to forward them to the
Go\ernments or Prefidencies abroad. In return, thcfe
Governments fend, under their leals, their anfwers to the
fecret Committee, which are forthwith communicated to
the Commiflioners. The fecret Committee is eflablilhed as
a part of the domeftic government of the Company, and
confifts of three members of the Court of Directors. The
duties of this Committee are to tranfmit the orders above
fpccified to the governments in India, with duplicates and
orders figned by themfclves, to carry the fame into effect.
The Commiffioners do not nominate any of the fervatns of
the Company.

Having thus fpecified the manner in which the executive
powers, formerly veiled in the Company, are exercifed
jointly by the Diredors and by the Commiflioners, the
act proceeds to new model the foreign governments : That of
Bengal confifl:s of a Governor-general and three Counfellors;
the Commander in Chief of the Forces was to have prece-
dence in Council next after the Governor-general. The go-
vernments of Madras and Bombay are each veiled in a Pre.

fident

AND TRADE IN THE EAST INDIES. 173

fident and three Connfellors, appointed by the Diredors. p^-^r *. ir.
The Governors in each Prefidency have the cafling vote.
His Majefty, by a writing under his fign manual, or the
Direftors, by a writing under their hands, may recall any
Governor-general, or other officer civil or military, from
India; intimation of fuch recall, when made by his Ma-
jefly, being given within eight days, to the Court of Di-
rc6tors. Vacancies arc filled up by the Dire6lors from the
covenanted fervants of the Company, except in the offices
of Governor-general, Prefident of Fort St. George and of
Bombay, or of Commanders in chief; to which the Di-
rectors are at liberty to nominate any other of His Majefly's
fubjeds. The Commanders in chief, however, do not
fucceed to the office of Governor-general or Prefident, at
Fort William, Fort St. George, or Bombay, unlefs fpe-
cially appointed to the fucceffion by the Directors. If
the Directors neglc6t to fupply fuch vacancies. His Majefty
may do it; but, in this cafe, the power of recall is in
His Majefty only. It is left with the Dire6lors to appoint
eventual fucceflbrs to the members of the different govern-
ments, or to the Commanders in chief, under the
preceding limitations. In cafe of the members of coun-
cil being reduced to two, the fenior fervant of the Com-
pany fucceeds, till a nomination is made by the Dire6lors.
The refignation of thefe officers muft be communicated in
writing. The orders of the Dire6tors, upon this and other
fubjedls, when approved of by the Board of Commiffioners,
cannot be revoked by the Court of Proprietors.

Thr

,74 -OF THE BRIT ISH GOVERNMENT

ci-iAr. II. The Governor-general and Council of Fort William,
have a controul over the other governments belonging to
the Company, in all points that relate to the country
powers, or to war or peace, or to the application of re-
venues, or tofuch other points as may be fpecially referred
by the Court of Directors to them; and, in general, their
fuperiutendance extends to all cafes, except when a fub-
ordlnate prefidciicy may have received pofitive orders or
inftructions from the Directors, or from the Secret Com-
mittee, repugnant to the orders or inflruclions of the
Governor-general and Council.

The bill next contains rules for the condu6l of the feve-
ral Boards abroad. They are firft to proceed to the con-
fideration of fuch qucftions and bufinefs as may be propofed
by the Governor-general or Prefidents, and then of fuch
matters as may be propofed by the members of Council.
The Governor and Prefidents may poftpone or adjourn the
diicuUion of bufinefs for forty-eight hours, but not more
than rwice, without the confent of the Council, or of the
member by whom the queftion has been brought forward.
The Governor-general and Council are prohibited from
declaring war agauift any Indian ftate or Prince, without
the exprefs authority of the Directors or Secret Committee,
except when hoflilities have been commenced, or preparations
adtuaily made for the commencement of them, either againft
the ijritiih nation in India, or againft dependants or allies
of whofc territories the Company have become guarrantees.

AND TRADE IN THE EAST INDIES. r

In cafe of hoftilltics being commenced, war Is not to be de- CHAP, ii.
Glared againft any other Indian power than the aggreflbr ;
nor is the Governor to enter into a treaty for guarrantee-
ing the pofTeflions of any other flate, except fuch ftate en-
gage to aflift the Company in repelling fuch hoflilities. In
thefe events the Governor-general and Council are to com-
municate full information of the fame to the Court of Di-
redors, by the mofl expeditious means, ftating their motives
and reafons at laro-e. The Prefidents of the fubordinate fet-
tlements are to a6l in like manner, with rcfpetl to the levy-
ing war or entering into treaties, except in cafes of urgency,
or where they have received ordersfrom thcGovernor-general
of Fort William, or from the DireiSlors, or from the Secret
Committee* All treaties, however, made by the fubordi-
nate Prefidencies, are to be fubje6t, if poflible, to the rati- ■
fication or rejedfion of the Governor-general and Council.
For difobedience of fuch orders, thefe Prefidents and Mem-
bers of Council may be fufpended by an order from the Go-
vernor-general and Council, to whom they are to tranfmit
copies of all adls in Council, with advice and intelligence
of all tranfadlions or matters which it may be material for
the Governor- general and Council of Fort William to be
inftruded in.

Thf a6l then proceeds to give direftions for invefligating
and adjufting the debts of the Nabob of Arcot, in fuch man-
ner as fhould be confident with the rights of the Company
and honor of the Nabob ; as alfo for fettling the claims
between this Nabob and the Rajah of Tanjore ; and further

directs,,

176 OF THE BRITISH GOVERNMENT

CHAP. II. clirecls, that an enquiry be inftitutcJ into all cafes where
complaints had been brought ot the natives having been dif-
pofleflcd of their lands, or opprelTed, that cffeclual re-
dicfs might be afforded to them ; and that methods might
be dcvifed for fettling the tributes and rents, upon the
principles of juftice and moderation; and, in fine, that the
proportion which the landholders iTiould pay to the Com-
pany, Ihould be fixed according to the laws of India. The
Directors are then enjoined to adopt meafures for retrench-
ing expenfcs, regulating promotions according to feniority,
and ordered annually to lay before Parliament lifts of all
offices in India, with the emoluments annexed to them.
The age at which writers or cadets may be appointed,
is fixed to be, from fifteen to twenty-two.

The regulations for the Courts of Juftice follow thofe
for the internal arrangement of the fettlements. All Britifli
fubje6ls are declared to be amenable to juftice for acts done
in India, by fubjecting them to Courts of Law% either in
India or in Great-Britain. Servants of the Company, and
Britifti fubje6ls, in general, are prohibited, under certain
penalties, from receiving prefents from the natives. Dif-
obedience to the orders of the Directors is declared to be a
mifdcmeanor at law, of which, making a corrupt bargain
to obtain any ofiice in India, is deemed to be an example.
The Company cannot compound with, or releafe perfons
convi(Sled of extortion or other mifdemcanor in thefe courts,
nor reftore them to the fervice.

The

AND TRADE IN THE EAST INDIES. 177

The bill then lays down regulations refpeding the re- CiiA?. 11.
Venue officers, who are to take an oath to difcharge their
duty faithfully, and not to accept of prefents, &c. The
Governor-general or Prefidcnts are authorized to iffue war-
rants, for I'ecuring perfons fufpe(!:l:ed of illicit correfpondence,
for committing them and bringing them to trial in India, or
to fend them to England for trial. Precautions are next
pointed out, for detefting perfons returning to Europe with
fortunes illicitly obtained. Officers, civil or military, after
the period of five years refidence in Europe, are not to return
to India without confent of the Proprietors, except the ex-
cufe of ficknefs has been admitted by the Diredors and
Commiffioners.

The mode of forming a Court for trying Indian delin-
quents is next defined. The aft requires, that within
thirty days from the commencement of every Seffion, the
Houfe of Lords fhall chufe, by ballot, twenty-fix or more
members of their body, and the Houfe of Commons forty,
or more, of theirs. The Speaker of each Houfe is to
tranfmit fuch lift to the Clerk of the Crown in Chancery.
Whenever a commiffion is to be iffued under the great ftal,
thefe lifts are to be delivered to three Judges of the different -

law courts, who, if the lifts Ihall contain more than the above
number of twenty-fix and forty, are to draw by lot within
three days that precife number of each. They are then to give
notice to tbc members fo chofen, to the party accufcd, and
to the Attorney-general, or other profecutor, of the time
and place of drawing, by lot, the names of the members

A a to

1^8 OF THE BRITISH GOVERNMENT

CHAP. IT. to be conftituted commiflTioners for trying the informa- i

tion.

The names of the Members of either houfe returned, who
fhall not attend, in confeqnence of notice, are to be tranf-
mitted to the Speakers, and the defaulters arc to forfeit /'.500
each. T he fenior Judge prefent is to act as Prefident of thefe
Commiflloncrs. No pcrfon holding a civil office under the
Crown during pleafure, or who fliall have been a Director of
the Company, or have held any employment under it, can
be of this Commiffion. The party to be tried has the liberty
to challenge, or make exceptions to any thirteen of the
Peers, or twenty of the Commoners, and the profecutor has
the like liberty to challenge any of the names, upon his
affigning fatisfaclory rcafons to the Judges, or to the ma-
jority of them. The firft four names of the Lords, and
the firft fix of the Commoners not challenged by either
party, are to be returned to the Lord High Chancellor, to
be infcrtcd witli thofe of the three Judges, in a fpecial com-
• miflion. The perfons fo appointed are to meet within ten
days, and to take an oath, that they will try and deter-
mine the cafe, to the be ft of their judgment, and according
to evidence. And in cafe the number of names fo drawn out,
be reduced by challenges to lefs than four Peers and fix
Commoners, then the Judges fhall certify the fame to
the refpedive Houfes of Parliament, who fhall proceed
afrefli to ballot the names to be inferted in the new com-
miffion, in the fame manner as in the original one.

The powers of the Commiflioners are to hear and deter-
mine every information, and to pronounce judgment ac-
cording

ANDTRADEINTHEEASTINDIES, 179

cording to common law, for extortion or other mifdemeanor, chap. ii.
and to declare the perfon convifted incapable of fcrving the
United Company. Seven Commiffioners to make a quorum, to
have the power of appointing a regifter, of iifuingfubpoenas
for the attendance of witnefTes, of fending for perfons,
papers, and records, of punilTiing prevaricators, of binding
to recognizance all the goods of the principal party, at the
time of entering into the fame; and if the party be found
guilty, and adjudged to pay a fine, the Attorney-general is to
exhibit interrogatories before the Court of Exchequer, as to
his eflate and effeiSls and if he refufe to anfwer, his whole
eftate, &c. fhall be forfeited, and himfelf imprifoned at the
difcretion of the Court. To remove the difficulty of ob-
taining evidence, witnefles may be examined in India, by a
writ of Mandamus, and their evidence tranfmitted to the
Court of King's Bench, to be delivered by the Chief Jul-
ftice of the Kincc's Bench, or one of the Judges, to the Lord
Chancellor, during fome one of the three ordinary terms ;
dcpofitions fo taken and received are to be held by the Com-
miffioners as legal evidence. Writings alfo received by the
Court of Dire6tors from India, and copies of writings fent
by this Court to their fervants in India, relative to the charge
in the information, may be admitted by the Commiffioners
as evidence. At the prayer of the profecutor, the Court
of King's Bench may order an examination of witnefTes upon
interrogatories. Such trials, however, muft commence
within three years after the return of the party from India.
The aft concludes, that nothing contained in it fliall affi;6t
the rights or claims of the Public or of the Company, to
the territorial revenues and acquifitions in India.

A a 2 Such

i8o OF THE BRITISH GOVERNMENT

CHAP. II. Such is the outline of the aft of parliament, under
Alterations which, Indian affairs have been adminiftered fince 1784.
irlc'rirm-' It ""i^y eafdy be fuppofed, that a bill of regulation on fo
liuccdbyfub- cxtenfivc a fubiciSt, would require alterations and im-
provements, as cafes occurred, Avhich could not either
be forefcen or provided for, when the Commiffioners were
firft entering on the difcharge of fuch important duties.
It was experience alone which could point out cither to
the Commiffioners for the affairs of India, or to the Court
of Dire6lors, the changes neceffary to accommodate this
new fyfteni to pradice, or to bring it to maturity. The
intercourfe between the Secret Committee and the Board
of Commiffioners, and the new arrangements in the
different boards, among which the bufinefs of the Prefi-
dcncies in India was divided, led to a correfpondence
on the aftual ftate of the civil, military, financial, and
political branches of Indian affairs, and to inveftigations
refpedling the relation which the Britifh provinces bear
to the Indian powers which furround them. The re-
fult neceffarily was, that alterations were required in many
of the claufes of the bill 1784, particularly in thofe which
regarded the politics in India, and in thofe, which pre-
fcribed the mode of proceeding in the trial of Indian delin-
quents at home.

t The principal improvements on the regulations for the

foreign government were introduced in 1786, of which

the following is an outline.

True

AND TRADE IN THE EAST INDIES. iSi

The fervants of the Company, whether in India or not, cha p, ii.
at the time of their nomination to be members of Council,
are acquired to have been for twelve years refident in India, in
the civil line of the Company's fervice. The claufe refpect-
ine the fucceffion of the fenior fervant to a feat in Council,
fhould it he reduced to two, including the Governor, was re-
pealed, and the Governor or Prefidents vefted with the power
offeleding from the fervants of the Company of twelve years
Handing, perfons to fucceed to fuch vacancy, if no pro-
vifional fucceflbr had been nominated by the Dire6lors. The
Commanders in Chief, in the different Prefidencies are not,
by virtue of fuch office, to have a feat in Council, though.
the Dire6tors may appoint fuch Commanders to be Go-
vernors, Prefidents, or Members of Council. The Go-
vernors or Prefidents are to have the power of carrying
any meafure into efFe6t, though the Members of Council
fhould dilTent ; but after the reafons of their diffent have
been heard and recorded, fuch Members are to fign the
orders of the Prefident, for the purpofe of giving them full
validity. The refponfibility, however, in fuch cafes, is in
the Governor-general and Prefidents, when they exercife
this power. This power is not to be exercifed by the fuc-
cefTors of Governors or Prefidents, unlefs they have been
provifionally nominated by the Diredlors. Exceptions are
made in the exercife of it, that it fliall not extend to judi-
cial cafes, to the fufpenfion of general rules or orders, or to
the impofing of taxes or duties. All orders and proceedings
are to be exprelTed, as made by the Governor-general in Council,
or by the Governors or Prefidents in Council, 1 he orders of the

Governors

l82

OF THE BRITISH GOVERNMENT

CHAP. II. Governors or Prtfidcnts in Council are to be figned by the
\ principal Secretary, or by his Deputy. Vacancies (under the
degree of Counfellor) are to be filled up in the following
manner. No office, the falaiy and emoluments of which
ihould exceed jC-500» i^ ^° ^^ conferred upon any fervant,
who has not been refident three years in the fettlement. For
offices above jT. 1500 per annum, fix years refidence is
required, of ^.3000 nine years, of ^T. 4000 twelve years ; and
to guard this arrangement (till farther, no perfon is to have
two offices, which, together, Ihall exceed the above pro-
portions, but under the like reftrictions.

To render the orders of the Commiffioners more effi-
cient, when communicated to the Secret Committee, the
aft concludes with defining more precifely the duties of its
members ; they are each to take an oath *' not to difclofe or
" make known the orders or inftru6lions given them, favc
*' only to the members of the Committee, or to fuch perfons
*' as fliould be employed in tranlcribing or preparing the
" fame," who in like manner were to take an oath of
fecrecy.

By another act of the fame year, the Directors are vefted
with the power of nominating the Governor-general and
Council, upon their own authority.

It was, at the fiime time, found necefTary to introduce

a bill for explaining and improving the conflitution of

the Court of Commiffioners for trying Indian delinquents.

By this adl each Peer may deliver a lift of tAventy-fix

* Peers,

ANDTRADEINTHEEASTINDIES. 183

Peers, and each Commoner a lift of forty Commoners, to chap. ii.
the clerks of parliament, to be opened in prefence of
their refpeflive fpeakers. Thefe- lifts are to be referred
to a Committee of each Houfe, who are to report the names
of fuch Lords and Commoners as are found in ten or more
of the lifts. If fuch names ftiall not amount to twenty-fix
Lords and forty Commoners,' new lifts are to be delivered
in for fupplying fuch deficiency, upon the fame principle
with the original lift, till the number is compleated.
Pcrfons holding offices under the Crown during pleafure,
perfcns being or having been Commiftioners for the affairs
of India,, or perfons being or having been Dire6lors, or
fervants of the Company in India, are excluded from being
nominated Commiffioners. The party to be tried, and
the profecutor, may challenge thirteen Peers and twenty
Commoners. The firft five names of the Peers, and the
firft feven of the Commoners,,which fliall not be challenged
by either party to be returned by the three Judges to the
lord Chancellor, and tobeinferted, with thofeof the Judges,
in a fpecial commifllon, and to take an oath " that they will
*' diligently attend the trials and hear and determine to
*' the beft of their judgment, according to the evidence
*' which lliall be given." Ten Commiffioners, atleaft, are
required to try the information, and the majority are to
decide. If the number be reduced to lefs than ten, a new
commiflion is to be awarded. Provifions arc then made in
cafe any of the Commiffioners ihall be ablent ; the Com-
miffioners are vefted with the power of adjourning, and of
appointing. clerks and officers of court; a Judge is autho.-

tized,

iS4 OF THE BRITISH GOVERNMENT

CHAP. II. ilzcJ, ckirins: the reccfs of Parliament, to award an attach-
mcnt again It a defendant, who alfo may furrender to a Judge
out of court. A defendant not attached or not furrendcr-
jng, may be profecuted to judgment. After notice is given
in the Gazette, judgment may be pronounced in his ab-
fence. The Commiffioncrs are empowered to commit a
defendant, till judgment is pronounced ; as alfo pcrfons
for contempt or difturbances in court. Judgment is to be
carried into effect by authority of the Court of King's
Bench, and is not revcrfible by writ of error. Informations
and pleadings are to follow the ordinary pra6ticc, until
iffue Ihall be joined ; but the party is not to be deprived of
any right he is entitled to by law. Informations may be
entered in the Court of King's Bench, and fines recovered
from the property of the parties in the Eaft-Indies, when their
eflates in Britain are infufficient. Examinations, in India,
before Courts of Juftice, are to be fealed up in thefe courts,
given to the agents of the parties, and delivered to the clerks
of the Court of King's Bench. Perfons refident in India are
made amenable to the Courts of Judicature there, and civil
and criminal jurifdiction given to the Governor and Coun.
cil of Fort St. George, in the Courts of Oyer and Ter-
miner, and to the Mayor's court at Madras. Pcrfons re-
turning from India are not to be required to deliver inventorie
of their eflfedls. Ofl'ences againft the laws for fecuring the
exclufive privileges of the Company, may be tried in the
Eaft-InJics. The powers veiled in the Governors and Pre-
fidents of feizing unlicenfed perlons and Ihips are confirmed
and defined ; bonds executed in the Eaft-lndics are to be

held

AND TRADE IN THE EAST INDIES. 1S5

held as evidence in Britain, and bonds executed in Britain, CHAP. ii.
reciprocally in the Eaft-Indies.

From the fituation of affairs in Europe, in 1788, it be-
came neceflary to explain more accurately the powers of the
Commiffioners refpeding the extent of the European mili-
tary force, which they might order to be fupportcd by the
revenues of India.

An a6t, therefore, paffed, by which the executive power
was authorized to defray, out of the revenues, the ex-
penfes of a fpecified number of European forces, but re-
ftriding the Commifiioners from making any encreafe of
the eftabliflied falaries and allowances of any office in the
fervice of the Company, unlefs fuch encreafe fhall be fpe-
cified in fome difpatch, propofed by the Dire6tors, and the
reafons be laid before parliament, thirty days before fuch
difpatch (hall be fent out. This encreafe to be added to
the next lift of eftablifhments laid before Parliament by
the Dire6lors. The Directors, within fourteen days after
the firft of February in every year, are to lay before •
Parliament an account of the produce of the revenues,
the annual difburfcment of each fettlement, the amount
of the bond and other debts, and the interclt paid on
them.

In confcquence of the war with Tippoo Sultan, an a6l
pafled in 1790-91, empowering the Commiffioners to fend

B b an

iS6 OF THE BRITISH GOVERNMENT

CHAP. IT. an additional number of European troops under fimilar re-
' fl:ricl:ions. And in the fame year an ail palled to enable Lord

Cornwallis, as Governor-general, or his fucceflbr in thatofRcc,
to conclude treaties with any of the Indian powers, or to
ilTue orders to the Governors and Councils of Fort St.
George and Bombay, iii the fame manner as he could do in
Council, at Fort William. The exercife of this power is
limited to a fpecificd time, after the termination of the war;
and is revokable by the Court of Diic61:ors, with the ap-
probation of the CommifTioners for the affairs of India.

Such is the prefent fyflem of Indian affairs ; of which,
the adminiftration is veftcd in the Direclors, and in the
Commifiioners refponfible to Parliament; and the com-
merce, farther than in its conne6lion with the revenues,
in the Diredlors ; while a prompt and a difcretionary
power is given to the Governor-general and Council, re-
fponfible, for their own and for the proceedings of the
fubordinate Prefidents and Councils, to the Directors and

Commifiioners.

•

It may eafily befuppofed, under this fyftem, and as the

Vailoiis me- .. ,-1^ 11 ' 111^

iiioirs fug- expiration of the Company s charter approached, that

provfn!"' this men with local information abroad, and in the adtual dif-

fyftem. charge of offices under the Company, and that men who were

conneded with Indian affairs at home, would direct their

attention to the formation of plans, calculated to improve

the government of our Indian provinces and to place the

s trade

AND TRADE IN THE EAST INDIES. 187

trade to the Eaft-Indies upon a new bafis. The oppoitu- chap. ii.

nities afforded the fervants of the Company in India, by

the conneftions of the different prefidencies with the Afiatic

powers; the enquiries which were carrying on by the refi-

dents at the native courts, to flrcngthen our alliances and

extend our trade ; the opinions which were forming upon

thefe fubjedls in England ; and the prevailing fpecula-

tions on Eaftern commerce ; all tended to fuggeft plans

for new modelling the fyflem of Indian government and

trade.

To bring the whole of this information into a flmple Mode of ar-
order, we may, in the firfl: place, ftate the principles in them'."^
which the whole of the memoirs, containing thefe plans
and fchemes, feem to agree ; and next make a digeft of them,
in the order of time and of the fubjecfts.

It feems to have been generally admitted, that the r, . . ,
Public have a pofitive right to difpofe of the territorial mitted in all
poiTeffions in India, and of the trade to the Eafl-Indies,
at the expiration of the prefent Company's term. That
the Indian revenues can only be realized in Britain through
the medium of the trade ; that the Company mufl be
left in a fituation to difcharge their debts; that it will
have a claim upon the Public for the loffes it may fuftain
in relinquilhing its fettlements ; that in the event of the
territories being affumed by the Public, the Company will
remain a body corporate, entitled, as well as His Majefly's

B b 2 other

iS8

OF THE BRITISH GOVERNMENT

CHAP. II. other fubjefis, to carry on a trade to the Eaft-Indies, and
^""""""^ ' upon a joint flock : that all the fubfifting treaties which
the Company have entered into with the nalivepowcrs, muftt
be confiJercd as the afts of the nation, and be ftrictly obferv-
ed and fulfilled ; and that the covenanted fervants of the Com-
pany muft not be left in a worfe fituation than that in which
they may be found at the expiration of the Company's
charter.

Previous Eefore wc procccd to givc an account of the manner in

qucftion^rcj ^yhich thcfc principles have been applied to the fubje6ls of
rights ot the Indian government, trade, and revenue, it may be proper
temporary to advert to the difliii(5lion in theCompany's rights, which has
tui'ty" '"^^^'" been pointed out by the lawyer?. They have alked the quef-
tion, IVhat rights are the Company actually vejied with? In
examining this fubjeft, they introduce a diftinclion between
the rights which are temporary, and thofe which the Com-
pany hold In perpetuity.

The temporary rights, they fay, are chiefly thofe to the
revenues which the Company draw from the territories that
have been acquired either in war, or by treaties with the
native powers ; the exclufive privilege of trading to India
and China to March 1794 ; to have the fums due to them
by the Public repaid ; and to adminiflcr their own affairs
both in India and in England, during the continuance of
their charter.

The

AND TRADE IN" THE EAST INDIES. 189

The rights which the Company hold in perpetuity^ are CHAP. n.
chiefly the following : To be a body poliiic and corporate,
with perpetual fuccefTion, and confequently to have a title
to piirchafe, acquire, or difpofe of property for value ; to
the poffefllon of the iflands of St. Helena and Bombay, con-
veyed to them by the London Company, under parliamen-
tary faith, and a royal charter ; to their fatftories and (tore-
houfes on the peninfula of India, and in fome of the iflands
in theEaftern leas ; to the towns of Madras, Calcutta, &c.
and to the difl:rl6ls around th.em, purchai'ed or acquired
under the like fandion and for the purpofes of procuruig
the neccflary provifions for the maintenance of their fer-
vants ; to Fort Marlborough, in the ifland of Sumatra, and
to the rents of the difliricl; round it; to build fortifications
for protecting their factories, to raife, pay, and employ land
and fea forces, within the limits of their trade ; and to carry
on a trade on their joint fl:ock, though their cxch/Jive privi^
lege fhould ceafe and determine.

Though there can be no obfl:acle from rcafonings on the
temporary rights of the Company, to any fyfl:em of govern-
ment, which may be propofed ; their rights in perpetuity, if
good, would render it difficult for the Public, cither to inft-
itute a new Commercial AflTociation, or to lay open the
trade to the nation at large, with any effe6t. A new trad-
ing Aflbciation might be excluded from the principal feats of
trade, by the Company cxercifiug thofe rights ; and thence
be forced to have recourfe to the Public for new feats of

trade

190

OF THE BRITISH GOVERNMENT

CHAP. II. trade, which could not be eflabliflied but at an immenfe ex-
penfc. Individual merciiants might, for a like rcafon, have
the fame recourfe to the Public, which, in this cafe, muft alfo
be at the charge of more eftablilhments. This difficulty
however, it is prefumed, is not infurmountable. When the
Company acquired its territories, it does not appear that
it fuppofed itfelf to be poffeffed of fuch r'.ghts ; at leaft,
there is no evidence upon record, that the froprietors
entertained fuch an opinion. When, in 1766-7, the Com-
pany made an agreement with the Public, no pretenfions
to any fuch rights were advanced. The very fame filence
upon the fubjetl: prevailed, when the Company made their
agreement with the Public in 1773. It appears, however,
that the Houfe of Commons were aware of thefe legal
difl:in6lions : for, in 1767, when they were forming their
refolutions refpedting the righis of the Eafl-India Com-
pany, they proceeded, upon the opinions of Mr. Yorke,
then Attorney-general, and of Mr. Pratt, then Solicitor-
general, " that all acquifitions, territories, &c. made by
*' arms, or by treaty, by the fubje6ls of this realm, do,
*' of right, belong to the ftate."

Opinions fug-
gefted re-
fpcdting- the
expediency
of oiibfating
a new fyfteni
of Indiun af-
fairs.

Though the adoption of this opinion by the Houfe of
Commons, may be confidered to have done away the difficulty
refpefting the queftion of right between the Public and the
Com.pany, it by no means is calculated to decide the more de-
licate queftion of expediency ; how far it would be proper
in the ftate, to exercife this right, or pradicable to do fo,

and

AND TRADE IN THE EAST INDIES. 191

and yelKj-^nder the revenues, which muft pafs, through the chap. ii.
medium of trade, produftive in Britain ?

On the firfl view of this fubje6t, the authors of different
memoirs thought, that the territories and revenues ought to
be taken into the hands of government, the amount be
apphed to defray the civil and mihtary charges, and the refi-
due remitted to Britain, through the medium of trade. On
a more full confideration of the fa6ts, however, it was
found, that the revenues and the trade, were fo intimately
blended with each other, that the credit which fup-
ported the lafl, would be weakened, if the influence,
arifing from the management of the firft, (hould be remov-
ed from the Company.

Upon the bafis of this conclufion, as well as of the pre- Application
ceding principles, it was propofed to introduce a fyftem ceding pHn-
which Ifiould have for its obietSt, a better plan of eovern- cipi"tothe
ment in India, than that which at. prefent fubfifts, and yet ofapiaaof
fliould conne6l it with the trade. In this plan the followino- vernmenT'
method of fettling the government was fuggefted ; that Par- witrfmde.
liament fliould declare His Majefty's fovereignty, over all
the Britifh pofTefhons in the Eaft-Indies ; that the ad-
miniftration of them {hould be vefted in the executive
government, with a refponfibility to Parliament ; that the
Crown Ihould have the power of ai)pointing the Go-
vernor-general, and Supreme Council, the Prefidents and
Councils in the fubordinate fettlemcnts, the Commanders

,02 OF THE BRITISH GOVERNMEN T

CHAP. II. ill Chief in each of the PrcfiJcncics, the Supernumeraries
for the civil and military departments, and particularly Offi-
cers in the revenue branch ; that the Supreme Government
fliould continue in the Prcfidency of Bengal, to which the
other Prefidencies fhould make reports, that the whole
might be one great eftablillimcnt ; that all the forts, garri-
fons, military ftores, &c. lliould be declared to belong to the
Crown, a reafonable compcnfation being allowed to the
Company for the value of them ; that the revenues, in India,
fhould be under the adminiftration, and at the difpofal of
the controuling power, in Britain, with a refponfibility
to Parliament, as it would be abfurd to place the revenue
in any other hands, than thofe to which the fovereignty
was to be entrufted; that the Company fliould be relieved
from their debts, beyond the fair amount of their aflets,
and be entitled to pay off one million of their bond debt,
out of the profits of their trade; that the dividend, upon
the- capital flock of the Proprietors, fliould be eight
per cent, annually; that an eafy mode fliould be devifed,
by which the Creditors of the Company abroad might raife
money on their fliares in the debt of the Company, which
was to be funded ; that a mode not lefs fimple and advan-
tageous fliould be devifed for enabling the fervants of the
Company to remit their fortunes to Britain ; that on the
bafis of the 22d of Geo. II. and 26th Geo. III. the fecurity
of the annuity paid, by the Public to the Company, fliould
reft on the faith of Parliament, as pledged for it.

AND TRADE IN THE EAST INDIES.

193

In illuftration of this plan, and to remove the ol^jectlons chap. ir.
which might be made to it, the fubflanceof the obfervations
oifered to illuftrate this plan, is nearly as follows :

I. It may, in the fiift place, be difficult to fay, whe-
ther the plan of controul by a Board of Commiflioners,
is, in itfelf a perfedt one; and in the next place, to find
upon a general view of all the circumftances of the cafe,
(viz. the trade, the revenues with which that trade is con-
n€6led, the effe6t which thofe revenues have had on the cre-
dit and influence of the Company, the danger of weaken-
ing the one, or diminifliing the other) whether any, but
the plan of controul, be pra6ticable.

Firft objec-
tion to the
adoption of
this plan,
arifuig from
the fubfifting
relation be-
tween the
controuling
power and
thcDirertors,
with the rea-
foning offered
to remove it.

A SINGLE fa6l is confidered to be decifive upon this fubjedl ;
that the revenues of the Indian provinces can only be realized
inBritain, through the medium of commerce. If the controul-
ing power is to continue to be refponfible, it ought to be
made active and abfolute : to give it either of thefe cha-
ra6ters, the revenues mufi: be placed under the fole manage-
ment of the Board of Commiflioners, and the furplus of
them afforded to the Company, for the purpofes of their
invefliment ; in return, the Company ought to give bills
on England for the amount. If this fyfliem be embraced,
then the correfpondence on the fubje6l of revenue,
and that on the fubje6t of trade, ought to be placed
under two difl:in6l bodies; the former fliould be entrufted
to the Commiflioners for Indian affairs ; the latter, to the
Court of Diredors; the Commiflioners fliould be under no

C c oblifra-

194 OF THE BRITISH GOVERNMENT

CHAP. II. obligation to communicate, or to explain the reafons of
their condud to the Court of Directors; and the Diredors
ought to be veiled with no title, to remonftrate or pro-
tefl againft the proceedings of the Commiflioncrs. It cer-
tainly would be imprudent, in many cafes, to communicate
the meafures which Government may think it expedient,
or neceflary to adopt, to a body fo numerous as the Court
of Dire6lors; and much more fo, to a body fo perfectly un-
qualified to judge of them, as the Court of Proprietors ; at
the fame time, it is rcafonable and proper, that both fhould
have every kind of fecurity, and all the information which
can with propriety be given of the meafures which Govern-
ment may think it expedient to adop>t. For thefe purpofes.
His Majefly might be veiled with the power of felecling,
annually, three, four, or five, from among the Directors,
to acl as Affeflbrs to the Board. Through them all the
political meafures, which in any Avay might affe6l the in-
terells of the Company, ought to pafs.

In any corftmunications, however, to thefe Affeflbrs, the
Board ought to be entitled to dire6t itfelf, by its own dif-
cretion, without any title in the Affeflbrs, either to remon-
ftrate, or to protefl:. In particular, the Board ought to
have the power of communicating fuch parts only of the
difp^tches, as they may think necellary and requifite foi»the
AflelTorsto know, for their inftruction, in the management
of the commercial part of the Company's concerns propofed
to be left to the Directors.

3 With

AND TRADE IN THE EAST INDIES. 195

With the view of fimplifying this plan, the political CHAP.ii.
correfpondence, or in general, whatever regards the civil
and military eflablilhmcnts abroad, and the management
of the revenues, ought to be placed, entirely, in the Com-
miffioners; while the commercial correfpondence ought to
be left, wholly, with the Court of Diredlors. If it ihould
be faid, that the abfolute controul, propofcd to be given
to the Board of Commiflioners, would be introducing a
principle repugnant to that upon which the adlsof 1784
and 1788 proceeded; the anfwer is obvious; the cafes are
different. Before the expiration of the Company's chatter,
they were veiled by an a6t of Parliament and a royal charter,
with the management of their territories and revenues, and.
could not have been deprived of them without a breach of
juftice, and of parliamentary faith : after it, the Company
will remain a body corporate, with the privilege to trade
to the Eaft-Indies upon their joint flock ; but it will be in
the wifdom of the Legiflature to determine, whether it will
take the revenues into its own management, or, again, en-
truft the adminiflrationof them to the Company, or whe-
ther it will again grant the Company the fame exclufive
privileges.

It cannot, however, admit of any doubt, that' if the
CommifTioners for India affairs are to be continued, the more
adive the controul given them, the more refponfible will
they become to the Public; and it can admit of as little
doubt, that the Dire6lors, who are to become AfTeffors,

C c 2 will *

1^6

OF THE BRITISH GOVERNMENT

CHAP. II. ^vill form a fufficient check, upon any encroachments, which
the Board might make upon the commercial proceedings of
the Company.

Many queftions will occur, relating both to the inter-
nal politics of India and to the relation which our poflef-
fions bear to thofe of the other European powers, having
intercfts in the Eaft, which it would be unwife and im-
provident to (late to the Directors ; more particularly, when
(according to this plan) through their Afleflbrs they would
become poflefled of every fpecies of information, which
could, in any way, promote their commercial proceedings.

Second Ob-
iection, ari-
fing from the
difficulty of
devifing a
mode of Go-
vern inent,
after the rela-
tion of the
trade with
the revenues
Ihould be dif-
folvcd ; with
the reafon-
ings offered to
iiniovc it.

2. It may be difficult, in the fecond place, to fay what
plan for the internal government of our Afiatic poficflions
ought to be adopted, upon the fuppofition, that the poli-
tical administration of them fhould be disjoined from the
management of the trade. Upon this fubject the fubftance
of the obfervations offered in illuftration of the general
plan, fecms to be nearly as follows:

In 1 78 1, it was the intention of .government to aflume
the territories as the immediate patrimony of the Public
and to place the management of the revenues under the
executive government. This idea was fuggefted, in con-
fequence of tjie opinion which has been already fbated,
refpe6ting the rights of the Public to territories acquired
by the Company. In order, therefore, to accommodate
the plan which has been fuggefted to this legal principle,

AND TRADE IN THE EAST INDIES. 197

it was faid, that it might be proper to confider the treaties chap, ii.^
which the Company had entered into with the Moguls, Sou-
bahdars, and other native ftates, ^s fraudulent and colourable
only. His Majefly's rights remaining unprejudiced.

If this hne of condudt lliould be adopted, then an un-
divided fovereignty ought to be afTumcd, and the diftinc-
tions of Ni%amut and Duannee aboHflied. This might be
a fimple, but, in the opinions of the moft informed of the
Company's fervants, as detailed in the preceding chapter,
it would be a hazardous experiment. If the name of
King was to be fubftituted for that of Mogul, or, even for
that of Soubahdar, an opinion would naturally arife among
the Hindoos and Muffulmen, that fomething more violent
was meant than a mere change of names. The characters
of the natives require the mod delicate attention, and no
feature in them is fo flrong as their attachment to their
eftablilTied opinions. Thefe muft neither be fliocked nor
trodden down ; for, in Mr. Hallings's language, " the
*' touch of chance, or the breath of opinion, might clif-
" folve the Bntiihi power in India."

Presuming, therefore, that this will be admitted as a
principle, the author of the plan, which has now been
(ketchedout, recommends; that, inconfiftency with it, the
Governor-general ought to be vefted with abfolute power in
India, and pofitive refponfibility at home; that even if the
fovereignty of the King Ihould be declared, the name of His

Majefty

igS OF THE BRITISH GOVERNMENT

CHAP. II . Majcrty ought never to be iifed in criminal proceedings,
as luch a circumftance would, naturally, appear a very
violent intrufion on the rights which had been Iccurcd to
the natives by treaties Avith the Company : that it
would be more prudent, in this particular cafe, to employ
the name of fomc of the natives themfelvcs, who might
*■ be raifcd to a proper rank by the Governor-general ; that

it might be expedient, in the fame way, not to ufe the
name of the King, in proceedings in the civil courts of
juflice, as in thefe a Hmilar mode of meeting the opinions
of the natives might be adopted. Still farther to conciliate
the natives to this plan, the authors recommend, that,
with the declaration of the fovereignty of the King,
a declaration of a general toleration in religion fhould be
publirhed ; and that the natives fhould be left under the
prote6lion of their own laws, and not have the right
to claim the benefit of Britilli fubjedls, nnlcfs they rcfided
within the jurifdi(5lion of the Supreme Court of Judicature.

Besides thefe more important confiderations, the opinion,
in thefe memoirs, is, that it would have a beneficial tendency,
if the Governor-general (hould be vefted with power to gratify
either the vanity or ambition of the natives, by conferring
on them ranks known and efteemcd in the country, and
in a way that {hould, at the fame time, give them im-
preflions, both of the liberality of the fovereign, and of the
intereft which he himfelf took in rewarding: their fervices.
The Governor might be empowered, for example, in

the

AND TRADE IN THE EAST INDIES. 199

the King's name, to confer the title and dignity of Rajah CHAP, ii.^
upon a Hindoo f and of Nabob upon a Mujfulman,

3. It might be difficult, in the third place, it was fug- Third objec-

gelled, fo to arrange the patronage abroad, as to prevent from the dif-

jealoufies or complaints of the abufe of power. The Sngin/thr

fubflance of the obfcrvations on this fubie6t, is as p--^'ronage,

. with the rea-

follows. The plan itlelf had propoied, that His Majefty lonings offer-
fhould be vefted with the power of nominating the Gover- u. ° ""'**"^
nor-general, Prefidents, Councils, and Commanders in
Chief ; and that all the other offices ought to be attained
by feniority. To prevent the inconveniences which might
arife from perfons being entitled to fucceed to offices of
truft, for which they might not be qualified, it is recom-
mended, that His Majefty Ihould, in future, have the nomi-
nation of fuch young men as may be required to fupply
vacancies in the civil and military departments, and that
they fliould be deemed fervants of the King, and have their
ranks as fuch preferved to them. That the Company fhould
have the nomination of all fupernunieraries in the com-
mercial department, and that fuch fupernumeraries Ihould
have a diftin6l rank affigned to them. That the fervants
appointed by the King, fhould be paid by government, and
have the fame allowances as they would have received, if
they had continued in the fervice of the Company. That
the Direftors fhould be left to determine for themfelves, as
to the number and pay of the fervants whom they may em-
ploy in the commercial department. As the pay to be allow-
ed

200 OF THE BRITISH GOVERNMENT

CHAP. II. eil to the covenanted fervants of the Company in general,
might not be adequate to their fnppoit, and to promote the
fpirit of commerce, it might be expedient, to give them the
privilege uf trading inward and outward, on their own ac-
count. That it might be proper alfo, that the engagements
of the civil and military fervants Ihould ceafe, in the hues in
which they have been employed, the moment they come
to be feleded to fill an office in the political department.
That the term cadet might be continued for the military
fupernumerary, but thatfome term, more defined than that
of writer, ought to be adopted for civil fupernumeraries.
Confiderable inconveniences having arifen from the negledt
or mifcondudt of the Commanders of the Company's fhips,
in conveying difpatches abroad, or in bringing them home,
and alfo from charging unreafonably for the paflage of re-
cruits to the different fettlements, it might be proper
to fix fome regulation, by which to place Commanders of
fhips more immediately, in thefe refpects, under the orders
of the Commiffioners.

Fourth ob- 4. It might be difficult, in the fourth place, to determine
irfm°"the''rc^- ^hat compenfation the Company may be entitled to from the
tuai ftate of Public, on account of the debt with which they are loaded,

the Compa- _ . _ .

ny'i debt, and of the necefiity there is for placing them in a fituation
pedicnts^fug- to difcharge it. Upon this fubject, the fubftance of the
nme^t? '" obfervations is, as follows :

That the debts of the Company amounted, at this pe-
riod, (exclufive of feveial large floating debts) to upwards

6 of

AND TRADE IN THE EAST INDIES. 201

of;^. 1 5,000,000, for the paymeut of which, the Company CHAP. iL
muft be permitted to eftabliih a fund at home, and funds in
their foreign Prefidencies. It was therefore propofed that
fubfcriptions ihould be received into their foreign funds, by
way of loan, at eight per cent. That the outftanding paper
of the Company ihould be accepted from the fubfcribers,
at par, and the books in India kept open till fix crores of
rupees, or fix millions fterling fliould have been fubfcribed.
That the current revenues in India fhould be the fecurity
to the fubfcribers in thefe funds, for the regular payment of
their annual interefl, which ought to be difcharged, in
preference to every other demand, except the military
charges, and the expenfes of colle6ling the revenues. If
the exigencies of an exifting war fliould, at any time, ren-
der the payment of the intereft impra6licable, in fuch a
cafe, from the time it became due, it fhould be held to
be (lock, bearing the fame intereft with the principal
from which it had accrued; and, upon this plan, it might
be expedient, that the government in India lliould be vefted
with the power of redeeming this ftock, at par, upon
giving three months public intimation to the holders of
it. With the objecl of connediing this foreign fund, with
the one which was fuggefted to be eftabliihed at home,
it was propofed, that fubfcriptions fliould be taken into
this lait, at lour per cent ; and that a trial might be made,
whether fubfcriptions might not be procured to it in India,
by granting bills on the Company in London, at three hun-
dred and fixty-fivc days fight. The authors of thefe nie-
iTioirs feem to have perceived, that an unfavorable im-
preflion might be made upon thofc, who would otherwifc

Dd be

202 OF THE BRITISH GOVERNMENl

CHAP. II. be difpofcd to lend their money to the Company, by the
feparation of the revenues from their commercial funds ;
but are of opinion, that if we abflracl from the aggregate
amount of the invgftments abroad, the fums received for bills
and certificates on England, and from the fale of goods ex-
ported from Europe, and the amount paid for (lores and
troops at home, we fhould difcover, from the remainder,
what fums had been applied to inveftments out of the
revenues; or, at all events, whether the Company were
gainers or lofers by the connexion between the revenues
and the trade. In Mr. Smith's account, formed in 1781,
he fays, that in fourteen years, from 1766 to 1780, the
fum contributed out of the revenues, for the purchafe
of inveftments, amounted to ^ 3,622,969, of which
;^.2, 169,400 was paid into the Exchequer, on the agreement
of 1767, leaving to the Company jT. 1,453, 569. Againft
this was placed ^(".5,069, 684, expended by the Company, in
the fifteen years war, from 1750 to 1765, fo that in 1780,
the revenues of India ftood debtor to the tradejC.3,616,215*.
An account of this nature, accurately brought down to the
lateft period, it is fuppofed, would fliew to what amount the
revenues were then indebted to the Company, and whether
it would be more or lefs than their available aflets would
fall fliort of making fatisfa6lion for their debts and ca-
pital ftock ; if more, then the deficiency ought to be funded ,|
on the credit of the revenues ; if lefs, then the Com-
pany would have no reafon to complain that the profits of -\\^
their trade fhould be united with their revenue in the pay-

* S«e more full oblervations upoo this fubjeft in Chap. Ill,

ment

'■ll

AND TRADE IN THE EAST INDIES. 203

ment of their creditors. Allowing all the weight to the CHAP. ir.
obje<Slions which Mr. Haftings had made, againft funding
the debt at the period at which his obje6lions were offered,
the memoir concludes, that Mr. Haftings could not know,
at that time, either the magnitude of the Company's debt in
India, or forefee the difficulty which was afterwards 'expe-
rienced in procuring bills, at a fair rate of exchange, on the
Company at home. It was admitted, however, that the re-
commendation which Mr. Haftings gave, of opening the
Company's treafury for the receipt of money, in exchange
for bills on Europe, was proper and that this meafure would
have enabled the different Prefidencies proportionably to have
extended their inveftments. The reafons which are affigned
for this opinion, are, that theBritifh fubje6ls would be induced
to lend their money to the Company, when making up their
inveftments, inftead of lending it to foreigners ; and that the
natives would be induced to lend their money to the Com-
pany, inftead of placing it upon an infecure mortgage, for a
monthly intereft. This laft circumftance would be another
hold upon their allegiance, while pundluality in the pay-
ment of the intereft would convince them of the ftrength of
the fecurity, draw their hidden trcafures into circulation,
and might tend, gradually, to incorporate them with the
Britifli traders. If it fliould be faid, that this method of
fettling the debt of the Company, might prove a dangerous
means, in the hands of a weak, or of a corrupted adminiftra-
tion, becaufe they might abufe their power of funding debts
in India ; the obje6lion might be obviated, by reftridt-
ing their power of funding to a limited fum. If it fliould
alfo be objc6lcd, that it would be difficult to fix the

D d 2 rate

X04 OF THE BRITISH GOVERNMENT

CH\p. 11, rate of transferring, ftock in India, to the books at home ,'
this might be removed, by taking the rate, which the
Company, at the time, allow for money in exchange for
bills on Europe. Having obtained this ftandard, it is recom-
mended, that the interefi of the two funded debts Ihould bo
made payable, at the fame half-yearly periods ; that the
transfer iliould be made to the Governor-general and
Council, and the certificate be granted by the proper officer
of government. The intcreft paid in India would thus be
Icllencd by every transfer made to the fund in England,

As not only the fecurity for their money fliould be undcr-
flood by the holders of flock, but the progrefTive manage-
ment explained to them ; it was farther propofed, that regular
accounts lliould be exhibited of the fums transferred home ;
that books fiiould be kept open at the India Houfe, to receive
fubfcriptions, at four percent.; the furplus profits of the
Company'^s trade, and the furplus revenue in India, declared
to be the fecurity for the payment of the intereft, as well as
of the principal ; and government fliould become a col-
lateral fecurity for the payment of the intereft, during the
time that India fliould remain in the pofTefTion of
Great Britain. In this home fund, as well as in the
foreign one, the Company fliould be vefl:ed with the
power of redeeming the ftock, at par. If, at any time.
Government advanced money to the Company, to en-
able them to difcharge the current intereft on the
home fund, it would be expedient to ena6f, that the
lum, fo advanced, fliould be replaced out of the profits

\iii

AND TRADE IN THE EAST INDIES.

20:

of their firft fale, and before they lliould be entitled to
make any dividend on their proprietary flock ; and, that
this repayment to Government ought to precede their di-
vidend, by, at lead, three months. In the event of the
debts in India being difcharged, it was rccomonended, that the
prefidencies of Bengal and Madras fhould be obliged to
advance to the commercial Boards of the Company, what-
ever fums could be fpared from the revenue, after defraying
the civil and military charges; and, in return, that bills
fhould be granted, without intereft, and payable atfuch dates
as the inveftmcnts might be fuppofed to be turned into cafli,
in England. That thefe bills fhould be tranfmitted to a
Treafurer, at home, who fhould become an officer under the
controuling power ; his duties fliould be, to get thefe bills
accepted, and then to depofit them in the Bank, in truft
for the Public. That whatever fums might remain after
the funded debt, at home, fhould have been paid off, they
ought to be confidered as an additional fecurity for the
payment of the funded debt abroad, and of its interefl".
The Company, by this arrangement, would afiumc the
charadler of merchants only; receive, from the King, a
protcdtion fuitcd to the purpofes of their trade ; and the
King, from his territorial revenues in India, as a franchife
of the Crown, would defray the civil, military, and other
public charges, without interfering with the Company's
profits on their trade.

CHAP. II.

Having thus removed the difficulties which it was Mcafarcs re.

apprehended might ftand in the way of eflabiiihing this to be tlkcn

,^1^ bv the Cuuv-

plan, -

io6 OF THE BRITISH GOVERNMENT

CHAP. II. plan, it was propofcd, that the following fteps ftiould
panyandthe hc taken to Carry it into effect: That the Company
State for jhould iiHTender to His Maicfty, for the ufe of the

carrying this •> •' ^

plan of go- Public, all their forts and territories ; but retain poffefllon
to effort. of their fa6lories and warehoufes, for che purpofes of

their trade ; that, as the fettlement of Bombay is of the
utmofl: importance to the naval interefts of Great-Britain,
the Public fhould be at the expenfe of maintaining it.
That with the deed, by which the Company furrender
their pofleflions to the Public, they fhould relinquifh the
titles which they have held to raife and to mufter
forces, to appoint commanders and officers, to make war
and conclude treaties of peace with the native Powers,
to nominate Governors, Councils, &c. That the trade,
though feparated from the revenues, and left to the ma-
nagement of the Dire6lors, Ihould, at the fame time, be
declared to be under the care and prote6tion of the Board
of Commifiioners. In particular, that the dividends fhould
be limited at 8 per cent ; unlefs, upon application to the
controuling power, in the event of the debts of the Company
being reduced to two millions, the Commiffioners Ihould
think that it would be expedient to grant permifllon to the
Dire6lors to encreafe it beyond that amount ; that the Direc-
tors Ihould be bound, annually, to lay before Parliament a
flateof their affairs, and of the aids which they have derived
from the executive powers in India and in Britain. In
the event of the Dire6lors obtaining permiffion to encreafe
their dividends, that the finking fund fliould be equally

4 benefited

AND TRADE IN THE EAST INDIES. 207

benefited with the ftock holders ; that if this advantage CHAP^il
fhould be fecured to the Proprietors, then, the value of
their forts and flores iTiould not be taken into the ac-
count of their aflfets, but fliould be deemed appendages
of the territory, and transferred with them.

II. Having thus applied the principles upon which the Application

of th

e pnna-

authors of thefe memoirs grounded their propofed fyf- pies upon
tern of government, in connexion with that of the trade '^,^"^" '^'^

t> ' plan Was

to the Eaft-Indies, it may be proper to lay open the views foun'ied, to
of trade which they embraced, and then to bring forward regulation of
the plan which they propofed for the final fettlement of |Jg eSid"
the government of our Afiatic pofTefTions, and trade to ^■^^■
the Eafl-Indies.

In examining the views which they have taken of the General cha-
trade, wc fliall confider, firft the fyftem which -.hey pro- ,"3^°^'^"
pofcd for the trade to India; and next, that which they
confidered to be expedient for the trade to China; fta-
ting with their opinions on both fubje6ls, the obje^lions
which they foiefaw would be made to their fchemes, and
the reafonings which they offered to remove them.

The fubflance of the obfervations on the trade to India, Particular
is nearly as follows : The trade to India and China has, ^hc'i'ndiln °^
hitherto, formed one great commercial fyftem. It has '"ti^*
been condu6led by a Company, protected by Government ;
fiipported by exclufive privileges, and maintained on a joint
ftock. It has pafled through a variety of viciflitudes, in

confequence

2c8 OF THE BRITISH GOVERNMENT

CPAP. II. confcquencc of oppofition from the other European com-
panies, trading to the Eaft- Indies, and has rilen to its pre-
lent height, both from the accidental circumftance of
havine; been c.onnc6led with territorial revenues, and of
having received a fucccfTion of aids from the Public. The
queflion now comes to be, whether the trade to India
and China iLould Hill continue one great commercial con-
cern ? or whether, in confequence of the connexion be-
tween the revenues and the trade to India, this trade
ihould b • confidered as one branch of the Britilh jn-
tcrtfts; and the trade to China a?iother.

In thefe memoirs, the authors are of opinion, that the
trade to India and to China, refts upon perfectly diftindt
V principles ; and that the trade to India Ihould be an open

trade.

Firftohjcflion

ro this plan, -pj ^^ obicaion which they forefaw to this fcheme,

arifing from J •' '

the check it arifcs from the check which it might give to the quantity

thejrefcnt of Biitifli manufadurcs exported by the Eail-India

JBrnififnitnu- Company; being, according to the conditions on which

failures by their chartcr proceeds, to the amount of one-tenth of their

the India >■

Company, capital ftock. In ani'wer to this obje6lion, they have recourfe
rollings offer- to the faOs, and fay, that if the exports of Britilh manu-
ttis'obxdiTn. faaures, made by the Company, from 1750 to 1785 Ihould
be examined, it would be found, after deducing from them
the articles of foreign merchandize, and of warlike flores,
that they did not exceed in value -(r.250,000 annually.
That the common objedl, both of the Diredors and of their
governments abroad, during the laft twenty years, l:as been,

not

AND TRADE IN THE EAST INDIES. to?

not fo much to encreafe the export of Biitifli manu- CHAP. ii.
fadtures, as to abforb the furplus of their revenues, and to
bring homo the fums which their fervants had acquired
in India, either from the conqueft or from the internal
trade of the country. That though the Dire£lors had
fent out repeated inftru6lions to the different prcfidencies,
to promote, as much as poffible, the fale of Britifh manu-
fadures in India ; and even gone fo far as to have come to
the refolution, to continue the export, as long as the goods
could be retailed without a lofs ; yet that their governments
abroad had repeatedly informed them, that the principal
confumpt of Britifli manufa6lures, was by their own] fer-
vants, and by the other European inhabitants of the pro-
vinces ; that even this demand had become lefs in confe-
quence of the exports in private trade, and by Britifli
merchants, trading under foreign colours. To fo great
a height had this evil arilen, that there was even a dan-
ger of the demands upon the Company, for Britifli ma-
nufactures being totally at a Hand. From tliefe circum-
ftances they concluded, that if the expenfe of the prime cofl;
of Britifli goods, the charges incurred by carrying them
to India, and the profits arifmg from the fale of tliem, fliould
be compared, it would be found, that the Company had
gained very little on their exports of Britilh manufacture ;
and that an open trade to India, would both have the eftcd to
encreafe the demand for Britifli manufadures, and to bring
this trade into the hands of the fair trader.

(ii.il„Pe, 2. The

2 10

OF THE BRITISH GOVERNMENT

CHAP. II,

V . '

Second oh-
jeflion, arif-
ing fioiii tlif
injury which
the Britifh
manufadtures
that ciepcud
on the raw
materials im-
ported by the
Company,
might fultain,
it their im-
ports fliould
be checked ;
with the mca-
fiircs, by
which it was
propofed, to
remove the
force of this
ubjeftion.

2. The fecond objcdlion, which it was apprehended,
might be made to an open trade to India, was, " that the
quantity of raw materials imported by the prefent Eaft-
India Company, upon which fo many of our home manu-
fa6turcs depend, would of courfebe diminilhed, and therefore
the price both of the materials, and of the produce of the
manufa6lurcs would be raifed." In fupport of this objec-
tion, recourfe would probably be had to the prefent flou-
rifhing fituation, at which the cotton manufa6tures of every
defcription had arrived, and to the efforts which were
making in France, to rival us in this branch of our trade.
The anfwer, which has been given, refers, in the firft
inftance, to the complaint, which the manufacturers have
brought againft the Eaft-India Company, of having fmce
the cotton manufadlures had been encrcafed at home, en-
larged their imports of piece goods, with the view of rival-
ling, if not of bearing down our home produce in the market.
The reply of the Company to this complaint, inftead of re-
moving it, may, in the opinion of the authors of thefe
memoirs, be held to be merely evafive. The Company ad-
mit, that they have encreafed their imports of piece goods,
and give as a reafon, the demands which have been made for
them in the foreign European markets, adding, that a con-
fiderable part of their profits depends upon the re-expor-
tation of them. If, however, the quantity of raw materials
required by the Britifh manufa6turer could be obtained, and
the price of them diminifhed, then a confiderable part of
the demand, in the foreign markets, would be for our
home manufactures, not for Indian piece goods. An open
trade to India was, therefore, recommended as the obvious

means

AND TRADE IN THE EAST INDIES.

£11

means of obtaining this obje6l ; becaufe, in the fiift place,
a rivalfhip would take place in the importation of cotton ;
and, in the next place, the India Company, as a body
corporate, trading on an immenfe flock, would find it
their intereft to enter into this rivalfhip, either to bear
down the private merchant, or, at all events, to draw to
themfelves the greateft fhare of the trade ; in either cafe
the Public would be benefited ; for the price of the ma-
terials would become low, and, of courfe, the attempt
of the French, to deprive us of this valuable trade, would
prove abortive. The conclufion drawn from this reafon-
ing was, that it would be for the benefit of our home ma-
nufadtures, if the exclufive privilege of trading to India
fliould be taken from the Company.

CHAP. II.

3. The laft obje6tion, which the writers of thefe memoirs
have confidered, againft opening the trade to India, was,
*' that the Public, at prefent, receive a large revenue from
the India trade, and that it would be a dangerous expe-
riment to hazard the lofs of this revenue, for the un-
certain profpe6l of a greater, from an open trade ; or,
that this fcheme might materially injure public credit."
The anfwers offered, to remove this obje6lion, confifl, firft
of a reference to the a6lual amount of duties paid by the
India Company to the Public; and next, to a fet of re-
gulations, by which an equal amount might be infured
to it. From looking into the accounts of the Com-
pany's falcs, as laid before Parliament, and of the duties
paid on them, it is laid, that the lum received is great,
in appearance, but not in reality ; for, if the duties upon

E z coffee

Third objec-
tion, aiiling
from an ap-
prehended
lofs of the
prefent reve-
nue paid to
the Public by
the Compa-
ny, with the
mcafurcs pro-
pofed for fe-
curing to it
the fame a-
mount.

312 OF THE BRITISH GOVERNMENT

CHAP. II. coffee and pepper be excepted, fcarccly a third of what
remains, finds its way into the Exchccjucr, as two-thirds
of the whole are funk in cxpenfes, and in drawbacks. If
then, the operv trade was put under proper regulations, a
• i'um equal to that which is aftually received, would cer-
tainly accrue to the Public. The regulations propofed arc
as follows; that the fliips to be cleared outward for the In-
dia trade ihould be of a certain fpecified tonnage; that a
fixed number of officers and men fliould be allowed to each
of them ; that each ihip (liould have a licence for- the trade
from Government ; that no paflengers lliould be allowed
without a licence from Government, in which their names
and their bufinefs, in going to India, fliould be defcribed ;
that, unlefs in the event of ficknefs, no pcrfon belonging
to the crews of the fhips, fhould be left in India, and a cer-
tificate of this fa£t ihould be brought home from the proper
officer of the port ; that the owners and commanders of the
fhips fhould be made refponfible to Government for the
good behaviour of their crews, at any port in the Eaft, at
which a ihip might touch ; that the commanders ihould be
ftriitly prohibited from carrying out warlike ftores of any
kind, except fuch as may be authorized in the licence to be
necefiary for the fhip itfelf, or to be on account of Govern-
ment ; that the whole of the cargo fhould be loaded in
the port of London, and be fubjeft to fuch rules as the
CommifTioners of Cufloms may, from time to time, pro-
mulgate; that the imported cargoes fhould be lodged in
the King's warehoufes, till the time of fale, and that rules
for condudling the fales, for the payment of the duties,

and

AND TRADE IN THE EAST INDIES. 413

and for the re-exportation of fuch goods as may be prohibited CHAP, i?.
from being fold for home confumption, fhonld be diftindlly
laid down. The refults drawn from thefe rcafonings and
regulations are, that the traders of Great Britain would be-
come the fole exporters of our manufactured goods ; and the
fole importers of the raw materials, upon which our manu-
fa6lures depend, in exclufion of the Portuguefe, Swedifli,
Danifh, and Dutch fhips, which, at this time, furnifh acon-
fiderable part of them; that a fum much greater than one-
fourth part of the prefent apparent duties would be paid into
the Exchequer, and confequently, that the public reve-
nues, from the Indian trade, would be greater than thofe
derived from the prefent monopoly of the Company.

It feems proper to leave thefe plans and the reafonings Sciiemefor

on them, refpedting the trade to India, till we have fol- the exciufne

lowed the authors of thefe memoirs through thofe which Jhe^Com a^

they have offered refpefting the trade to China. ^" j^c Cfaina

On the fubje6l of the trade to China, upon viewing the
whole circumftances of the cafe, they are of opinion, that
it muft continue a monopoly, and be carried on upon a
joint ftock.

The reafons affigned for a fcheme of trade to China, fo Reafons'foi
oppofite to that which had been propofed for India, are; tTL fbhTme,
that in India we pofTefs faftories and privile2;cs; in China, anfing from

^ 1 t3 ' 'the nature of

no privileges; that, in India, our fubjefts are protedted the trade, and
either by our own laws, or by thofe of the native States, rafter of the

confidering ^^''''^''

21+ OF THE BRITISH GOVERNMENT

CHAP. II. confidering US as neighbouring Sovereigns. In China, and
even in the river Canton, wc are obhged to fubmit to th*^
laws of that empire only, and have experienced from its officers
the moft humiliating inl'ults, as well as the mofl: unprovoked
feverities. Neither ignorance, nor inadvertency have here
been admitted as excufes for an offence againft local or unin-
telligible cufloms; and non-compliance with either would
bring deftrudlion both upon the trade and the fubje£ls of
any country.

■''u'rTwa'^idl"' ^^"^ fuppofmg thefe circumftances could be altered, and
the Britiih that WC could trade to China, Avith the fame fafety as we

trade to Chi- r i r • • i i

na might fui- could do to the ports of othcr foreign nations; the ground
efforts'mak!ng upon which this trade mufl reft is peculiar, and the com-
bv the Com- niodities brouo-ht home through it, ofeflential benefit to the

pany to rcn- " ^ o '

cicrthecir- rcveuue. A fum, in bullion, not lefs than 1,000,000 fler-
trade wider liug, aiinually, had for many years been fent from this
iToppcd.'^^ country to purchafe the teas, required for our home con-
fumption. The efforts which had hitherto been made to
diminilh this quantity of bullion, have had but a partial
fucccfs. The obvious meafurc was to widen the circuit of
commerce towards the eaftern iflands, by carrying BritilTi
or Indian produce firft to them; and then fuch produce
from them as would be received in the China market ; ex-
periments are making in this way, but the refults do not, as
yet, entitle us to infer abfolute and full fuccefs ; for, firfl,
fome of thefe attempts have failed, as in the cafe of the fct-
tlements attempted to be t\)rmed in 1778 and 1779, on the
ifland of Rhio; and, next, that which has been effected on
4 the

ANDTRADE IN THE EAST INDIES. 215

the ifland ofPinang, at an expence of about JT. 2 ^,000 per cu.w. 11.
annum, had not yet afforded us fufficicnt experience of its
utility. If finiilar attempts fhould be made, it would only
furnifli a reafon for thinking, that in progrcfs of time the
balance of the trade from China, may turn in favour of
Britain, and that the export of bullion may become Icfs ne-
ceiTary.

But fuppofing that thefe circumftances in the China
trade did not fo ftrongly recommend the continuation of the
cxclufive privilege of the Company, as they in faft do ; the
advantages which we derive from their eflablillied commercial
character, would render its continuance a matter of expe-
diency. In the firft place, the prejudices of the Chinefe
in favor of the Company, are founded upon having been
long accuflomed to tranfad with their fa6lors ; next, upon
a certainty of a large demand from them ; and, laflly, upon
that punftuality of payment which the Company's extenfive
credit has enabled them to make. In none of thefe refpeds,
could any ftranger enter into competition with the Com-
pany ; nor are thefe general advantages the only ones which
they would poflefs over the private merchant. They have
fervants regularly bred to the bufmefs of colleding quantities
of opium, gold duft, filver, lead, ivory, with a number of
lefler articles fitted for the Chinefe trade. Thefe fervants
have been accuftomed to the traffic in the iflands, are ac-
quainted with the languages of the people, and are furnillicd
with a number of fmall veffels, by which to carry the articles
coUefted to fome depot, at which the China lliips can touch
with fafety, or to convey them diredly to the Company's

factory.

e,5 OF THE BRITISH GOVERNMENT

CHAP. II. factory in China. A conftant correfpondencc has been kept
up between the perfons employed in this traffic, and the Supra-
cargoes at Canton, Avhile a hke correfpondencc has been
maintained by the Company's Agents, with the Chiefs in
thcfe iflands, that they may be fupphed with fuch articles as
they ftand moft in need of. The private trader, on the con-
trary, would, in the bed view we can take of his credit, be
but in the fituation in wliich the Company were placed at
their firft inftitution, that is, he would have bullion to ex-
port, credit to cftablilli, chara6ler to acquire, and gradually
to find out and become pofTcfled of means for rendering
his trade profitable.

^ , r Taking then the whole of thefe circumftances into con-

Conciunon,

lot- a mono- fidcration, thefe memoirs conclude, that though opening
China trade, the trade to India might be a wife and beneficial fcheme, the
opening the trade to China would be hazardous and impro-
vident. It might not only expofe the individual trader to
deflru6lion, and the parties concerned in the adventure to
a bankruptcy, but, from the odd, yet fixed chara6ler of
the Chincfe, exclude the Company continuing to trade on
their joint ftock, from entering into, or clearing out from,
the river Canton. Leaving then the advantages which the
Public derive from the tea trade entirely out of view, the
market from which we bring fuch materials for our manu-
fadlures, as raw filk, ivory, &c. might be fhut againfl us,
and yet open to the other European nations, and, at all
events, the encreafe which the China trade has received from
the regulations wliich have reduced the prices of China

goods

AND TRADE IN THE EAST INDIES. ai?

^oods to a rate that has given us a fupcriority in the trade, chap, ii.
misht be loft.

Having thus taken a review of the memoirs, which have Pianpropofed

. to be lubrRit-

fuggefted plans for the future government of our Afiatic ted to Paiii-
poflcffions and regulation, of trade to India and to China, the cftabiirti-
it may be proper before we apply the principles, upon which |yft"mfof^go!
they have proceeded, to the eftablftimcnt of the fyftem of vernmemand.-
revenue, with which it was propofcd to connect them, to
give an outline of a plan, drawn up, about this period, for
connedino: the revenues with the trade.

This plan is introduced with the following preliminary ob- Principles
fervations; that Parliament on repayment or j(^. 4,200,000, this plan pro«-
may, or may not, continue the exclufive pr vilege of the
Eaft-India Company, after March 1794*. That though
■Parliament iliould take away the privilege of exclufive trade,
the Company ftili would remain a body corporate, entitled
to trade to the Eaft-Indies upon their joint ftock. That
the pofleflion of their territories and revenues is a right of
the Company, during the remaining period of their char-
ter +. That the bond debt in 1787 being jT. 2,000,000, the
capital ftock /^. 4,000,000, the annuities fold, or intended
to be fold, abforbing the intereft due to the Company by
tlie Public, the expenfes of the late war about £. 10,000,000,

* See 2ift Geo. 3. chap. 65. fcift. 5. in colleiftion of ftatutcs relative to India, by
Erancis Ruffel, Efq.

f , See, feft. 8 of the preceding a£t.

E£ . ^ could-

/■

4i8 OF THE BRITISH GOVERNMENT

CHAP. 11. could be paid off, within the remaining term of their cx-
clufive trade; that the a6ls 1773, 1779? 1780, and 1781, have
reftrided the Company from accepting bills of exchange be-
yond JT. ^00,000 per annum, -without leave, firft obtained,
from the Treafury; that the territorial revenues not
affording aid for ^the payment of their foreign debts, (as
being fcarccly adequate to the burthen of the peace
eftabliflimcnts and to the commercial inveftments,) there-
fore they had obtained leave of the Treafury to bring them
home by bills on the Directors; that the profits on
their revenues and trade have been united and made into
one fund, and after payment of the current charges, and
intereft of the bond debt, are to be appropriated as follows*;
to pay 8 per cent, dividend to the flockholders ; to
reduce the bond debt to ^.1,500,000; to pay bills of ex-
change drawn on, or to be drawn on the Court of Direc-
tors; that after the redu6tion of the bond debt, and pay-
ment of the bills, the profits of the revenue and trade
are to be appropriated in the payment of the 8 per
cent, dividend, and as a fund, of which one-fourth is to
belong to the Company, and three-fourths to the Public.
On the bafis of thefe principles, the plan, after dcfcrib-
ing the characSters of the original and continued charters
of the Company, the right of the King to territories, ac-
quired by his fubjeds, either by arms or by treaties ; and
after makins: references to the different a6ts, which have

A(fts 21 Geo. 3. chap. 65 and 23 Geo. 3. chap 83. fcc^. 8 and 9.

made

AND TRADE IN THEE A ST INDIES. 219

made conditions and flipulations with the Company, pro- CHAP. ii.

pofes, that the following arrangement ihould take

place.

That His Majefly flioukl be declared to have the fole rig-ht ^"^P°^'^°^-

, . . , ° comprehend-

to the Britilh territories in India, and to the revenues arifmg; ^d ink.

from them, for the ufe of the Public. That His Majefly alfo
(hould be vefled with the executive power in thefe territories,
to be exercifed, in future, in the fame manner as in the
plantations and other foreign fettlements of the Crown.
That the natives and other inhabitants in the Briti{h pro-
vinces in India, Ihould be declared to be the fubje61s of the
King, and under His protedion ; but that they fhould be
governed by their own laws and cuftoms, and not be en-
titled to the franchifes of Britilh fubjeds, unlefs by refidence,
connexion in trade, or fervitude, they fhould become ame-
nable to the laws of England. That the powers and authori-
ties which have been granted by former ads, for the good
government of the feveral provinces in India, fhould remain
in force, except in fo far as they may be refcinded in this or in
future Ads of Parliament. That the Governor-general, the
Prefidents, Councils, Judges, and Officers of revenue,
fhould, in future, be in the nomination of the King ; but that
the prefent appointments fhould be continued till His Majefly's
pleafure fhould be known. That the duties at prefent exercifed
by the Governor-general, Prefidents, Councils, &c. fhould
continue, except in that part of them which enjoins the officers

F f 2 to

• 20 OF THE BRITISH GOVERNMENT

.CHAP. ir. to pay obedience to the Court of Direftors. That 'he fala-
rlcs of the Governor-general, Prefidents and Judges, fliould
be chargeable on the civil eftablilliment, and paid from the
territorial revenues in India ; but that a power Ihould Le
given to the India Board to vary or alter the amounts of thcfc
i'alaries at plcafurc. That all the fubfifting treaties which the
Eaft-India Company have entered into with the native
Princes or States in India, fhould be declared to have the
fame force as if thefe treaties had been made with His Ma-
jefty. That the fervants who might be employed in the
revenue department, fhould be prohibited from entering
into any commercial engagements, and fhould take an oath
not to accept of prefcnts of any kind or defcription. That
the afts which have obliged the Company to defray the ex-
]:)cnfes of His Majefty's forces fen'ing in India, or of His
fleets defending its coafts, fhould be, by this aft declared
to be repealed*. That the powers which have been
granted in different charters, and by different a6ts of
Parliament, to the Eaft-India Company, to raife and to
difcipline troops, and to equip and to employ fhips of
war, fhould be no longer in force f' That the Governor-
general, Prefidents, &c. in the different fettlements fhould
be vefled with the poAver of appointing to fuch fubordi-
nate civil or military offices as may become vacant ; but
that the promotion fhould go on, upon the principles effa-
bliflied in the fourteenth and fifteenth fedions of the

* Viz. 21 Geo. III. cap. 65. fed. 17.

,f Viz. 27 Geo 11. cap, 9. I Geo. III. cip. 14. 13 Geo. III. cap. 65.

26 Geo,

AND TRADE IN THE EAST INDIES. m

26 Geo. III. That the Company's fervants now m India, CHAP. IL
fhould be entitled to the fame rank, which they would have
obtained from the Company, but, in future, deemed fer-
vants of the Crown. That the Company's army in India,
fhould be declared to be the King's, but with th.e fame line of
promotion and difliii61: rank as formerly. That the executive
power (hould be limited, in the number and age of the iuper-
numeraries to be fent out to India to fill up the civil offices,
and that thofe on the prefent lift, {hould have the preference,
when vacancies happen. That the powers which have been
granted to the Governor-general, Prefidents, and Councils, to
feize on illicit traders, fhould be continued ; and, in profecu-
tions againft them, that the courts of juftice fhould have
cognizance and authority over the party, although he fhould
refide without the ordinary limits of their jurifdidion, if he
fhould be found within the hmits of the Company's exclu-
five trade. Perfons convifted of fuch offences, fhould be
made liable to imprifonment, till they could be fent home
by an order from the Governor-general, or Prefidents and
Councils*. That the Company, in the exclufive privilege
propofed to remain v/ith them, fliouid be authorized to grant
* licences to fuch private traders, as may be approved of by the
controuling Power ; and declared abfolute proprietors of
fuch houfes and lands as may be neceffary for the purpofes of
their trade. That the Company fhonid be fupplied with the
furplus revenue for their inveftment, except in the time of
war, when this fupply fhould be limited to a certain fum.

* Aa zb Geo. III. cap. if.

That

22a OF THEBRITISH GOVERNMENT

CHAP, II.

That for the fum received, they fhould grant bills on the
Court of Dire6lors, at eighteen or t^venty months date, but
that no intereft fliould be paid on thefe bills, till after they
fhould become due ; and this to continue to be the pradice
while the Company remained accountable for the profits of
their trade. After, however, the payment of the foreign
debt, and the redu(5lion of the bond debt at home, to
^. 1 ,500,000 ; that the bills Ihould carry^a reafonable intereft,
after fix or eight months. That while the foreign debt
fhould remain unpaid, the holder of a bill of exchange from
India, after it fliould have been accepted by the Diredtors,
fhould carry it to the Accountant-general of the India
Company, who, after adding to it whatever intereft might
be due, fliould cancel the bill, and grant his certificate for
the whole amount to the Directors of the Bank, which certi-
ficate fliould entitle him to a transferable ftock, equal to the
value of the w'hole of his debt in a new fund, to be named
the Indian 5 per cent, annuities. That the intereft on this
ftock fliould be paid at the Bank, in equal portions, at
Midfummer and at Chriftmas, from the fums to be paid into
it, out of the furplus of the territorial revenues, and the
Public fliare of the profits of the trade. That diftin6^
accounts of thefe payments Ihould be kept at the Exchequer,
and whatever might remain, after paying the half-year's inte-
reft, fliould be employed to pay off 10 per cent, on the prin-
cipal or ftock, which, from time to time, might remain due.
If any fum fliould remain, after fuch payment, that it fliould
be employed, in confequence of an order from the Lords of
the Treafury, towards fatisfadion of the funded debt, till the

whole

AND TRADE IN THE EAST INDIES. tij

whole of it fliould be extlnguiflied. That, after every fuch chap, ii.
payment, new books of transfer fliould be opened, contain-
ing accounts of the reduced and unfatisfied ftock ; that a
difcrctionary power be given to the Lords of the Treafury,
authorizing them to advance, out of any unappropriated
Public monies in the Exchequer, a fum fufhcient for the
payment of the annuities, when the proper fund, from any
circumftance, might not be equal to the payment of them.
This advance, however, at no time, was to go beyond the
amount of interefl:, due in any one year, and, when made,
bills of exchange fliould be given by the Directors for the
amount. That thefe bills fliould be difcharged, or the amount
of them paid into the Exchequer, either from the firft re-
mittances from India, or out of the profits of the trade ; the
whole to make a part of the annual reports to be made to
Parliament. That the Dire6lors, alfo, fliould be allowed to
difcoHUt, at the Bank, fuch bills as might be drawn in their
favor, from any of the Prefidencies, to fuch an amount, as
Avould yield a fum fufficient to pay the annuities when due.
That the Dire6lors of the Bank fliould have paid to them,
out of the fund provided for the India 5 per cent, annu-
ities, fuch a reafonable allowance, for their trouble, as the
Lords of the Treafury might direft. As the debt alfo had
been contraded in defending territories acquired for the Britifli
empire by the India Company, that it fliould be underftood,
that if thefe pofTeflions fliould be wreiled from Britain before
fuch debt thould have been paid off, fome other fund fliould
be pledged for the fecurity of the fl:ockholders. That the
* - Company

224 OF THE BRITISH GOVERNMENT

CHAP. 11.^ Company fliould be bound to pay the Intcrcfl of their bond
debt out of the whole of their profits of trade, and alfo a di-
vidend of 8 per cent, per annum on their capital flock,
charging the fame as items of difburfement. That three-
fourths of the remainder fliould be paid into the Exchequer,
to be under the orders of the Lords of the Treafury, firft,
for reducing the bond debt to ^T. 1,500,000, and next to pay
off the principal and intercfl: of the funded debt. That
the Dire6tors fliould be obliged to render to the Commif-
fioners of the Treafury, in tlie month of April, an exad fliate-
ment of the nett profit and lofs of their trade from Feb-
ruary to February annually. Thefe fl:atenients to be given
on the oaths of their accountants, and attefl:ed by three of
the Dire6tors. That a duplicate of thefe ftatements fliould
be laid before Parliament, if fitting, if not, within fourteen
days, after the opening of the feflion. That the claufe
for the redemption of the debt due by the Public to the
Company, fliould be repeated, with a provifo, that fuch re-
demption might take place, on three years notice. That in
the event of the flatement of profit and lofs on trade not
being rendered by the Diredors, or of their not paying into
the Exchequer the fpecified proportion of the profits of
their trade allotted towards the fund for the difcharge of
their debts. Parliament fliould have the power of determin-
ing their exclu five privilege of trade, on one year's notice.

©pinion fug- Leaving the obfervations which it may be neceflliry to

g«^

flkd in the

eonciuiion of rnake upon this bill, and upon the plans and principles on
which it proceeded, till fuch time as we have confidered the
3 fclienie

'.<i

1, ji

ANDTRADEINTHEEASTINDIES. 225

fcheme of the revenue, with which the whole was to be con- CHAP. IL

S 111- ^ I -'

nefted, it is I'ufficient to obferve, on this plan, that the author
of it concludes with the remark, that after all the know-
ledge which had been obtained of Indian affairs, flill we
were not prepared to bring forward a fyftem upon this na-
tional fubjeft, and that his intentions went no farther, than
to propofe a bill of experiment.

III. Having brought into view the plans of government ^/'thefr'rb-
and of trade, offered in thefe memoirs, it only remains to c'pies to a

• 1 1 1 1 • r n ^ r propofcd fyf-

conneft With them, the regulations luggelced for the ma- temofreve-

r ^^ nue and fi-

nagement or the revenues. nance.

It may be neceffiiry, in introducing this fubje61:, to pre- General ob-
mife,that the general object in the whole of thefe fchemes feems phn.
to have been, rather the liquidation of the Company's debt,
and the improvement of their commerce, during the re-
maining period of their cliarter, than to fettle the quan-
tum of revenue, or the mode of levying it in our Afiatic
territories. The hints which were given, refpe6ling their
plan of government, feem to have been confidered as fufficient
for thefe fubjefts. It appears, indeed, through the whole
of the obfervations, ^^hich we have detailed, and it will be
made obvious, from thofe which are to follow, that it
was held to be a defideratum, that the Company's
debts fhould be difcharged, if pofiiblc, by March 1794,
and that their poficffions fliould then fall into the hands
of the Public, as landed property does, into thofe of
its owner, on the termination of a Icafc. If fo defirable

G g an

226 OF THE BRIT I SFI GOVERNMENT

CHAP. II. an end could be obtained, they augured, that then, the Le-
giflature might difpofe of the property of the PubHc, in the
way that might be moft beneficial to the intercfts of the
Nation, and connedl with this final fcttlcment, the fyftcms |

for an open trade to India, and for continuing an exclufive
trade to China, iyith the Company.

^c^-imoum Keeping therefore, this general line of thinking in

of the revc- vicw, we fhall /f/y? offcr an abfl:ra6i: of the opinions of thefc

mies at home - . , ^ i • i i

andabroaJ.as autliors, refpcfting the fums which the Company might be
cfanMo'f'the expe61ed to realize at home; and alfo, refpe6Hng the fums
ulTpubiic"" which they might be fuppofed to realize abroad ; and laflly,
fubjoin the inferences from both, as applicable to the claims
which the Company may have on tht Public, and to the
compcnfation which they may cxpeft to Fcceive when their
exclufive charter fhall have expired.

Subftance of j '^he fubftancc of the obfervations made on the fums,

the oblcrva- i- i i • r 11 »-r-ii

tions made on expeftcd to be realized, at home, is as follows : That the
oHhrrc""'- profits on Britifti manufaftured goods, exported to India and
Bue at home, c^jj^^^ h^j ^Qt, on an average of the preceding ten years,
exceeded 2^ per cent, of dividend, on the old capital flock
of j^. 3,200,000. That the profits on the import trade
from India and China, on a fimilar average ; and for a fimi-
lar period had produced only a dividend of about 5I per
cent, on the capital of £. 3,200,000. That from the eftimate
of the amount of the Company's falc of goods imported from
India and China, for the then current year, the amount was
calculated at ^.4,546,000, and for future years ^.4,700,000.

That

AND TRADE IN THE EAST INDIES. • 227

That to furniili goods, for an annual fale, to the amount of p^'^^- ";
^(■.4, 700,000, it was computed that jT.i,! 10,000 muft be em-
ployed in providing inveftments in India, from which a nett
profit of ^.90,000* wasexpeded, being after the rate of about
8 per cent, on the prime coft. That £. 1,500,000 muft be em-
ployed in providing an inveftment in China, from which a
profit was expeded of j^". 375,000+5 being 25 percent, on
the prime coft. That the remainder of the fale, beyond
the prime coft, was abforbed in freight, demorage, duties,
and charges on merchandize. That the commercial fund
of the Company was compofed of thefe profits, and of
about £. 70,000 per annum of duties on private trade, of
JT. ^6,226, on the unfold part of their annuities; and fup-
pofing neither a profit nor a lofs on the export trade in

* Eftlmated fale of India goods - - ;£■. 2,160,000

Prime Coft - - £• 1,110,000

Charges of freight, cuftoms,

and merchandize - - 960,000

— 2,070,000'

Eftimatcd profit £. 90,000

f Eftimated fale of China goods - - /'. 2,540,000

Prime coft - - £■ 1,500,000

Charges of freight, cuftoms,

and merchandize - - 665,000

■ — — — 2,165,000

Eftimatcd profit /". 375,000

G ^ z future

22S , OF THE BRITISH GOVERNMENT

^CHAP. II. future, fuppofini^ their fales to amount to £ 4,700,000, their
commercial revenue mitrht be fct down as follows:

Profit on India trade £_. 90,000

on China trade - 375,000

on private trade - 70,000

Annuities unfold by tlic Company 36,226

jr.57i'-26*

In forming thefe eflimatcs, the charges of freight
are taken at the reduced rates, payable in the time of
peace, and no allowances are made for the hazard of fcas
or enemies ; for the expenfes of recruits, and for penfions
to fuperannuated officers and fcrvants, which might be fet
down at jr.40,000 per annum ; nor for the amiual interefl of
;^. 2, 1 00,000 of India debt, at that time transferred home,
amounting to ^.105,000. It is thence argued, that
adding this jT. 105,000 to the ^(".40,000, and then taking
into view ^.128,000 annual interell, on the bond debt of
jr.3, 200, 000, and jT. 400,000 for an 8 per cent, dividend
on the capital ftock of jr.5, 000, 000, the whole would amount
to j^. 673,000 per annum, exceeding the eftimated commer-
cial fund by jT. 101,774. If even the intereft of the tranf-
ferred debt (hould be fubtracted, as not conflituting, pro-
perly a charge on the commerce, the fund would then only

* Thefe computations were mndc in 1789, from the accounts of preceding years;
but the trade has been improved fince the period to which thefe accounts refer.

exceed

ANDTRADEINTHEEASTINDIES. 229-

exceed the outgoing, by ^.3,226. It is thence ftated, that to CHAP. Ii.
fupport the Company's credit, their outgoings muft be regu-
larly paid, though the fund at the fame time would be expofed
to fuch contingencies as the power or inability of the foreign
prcfidencies to provide invefl.ments at th# eftiraated prices ;
proi'perous or unfuccefsful voyages ; profitable or unproduc-
tive fales; moderate or high rates of freight and demorage.
If, however, independently of fuch accidents, the com-
mercial fund lliould be found barely fufficient to anfwer its
own current and fixed payments, it was evident, tl-sat fome
method muft be found out to continue the progrefs of the
trade. The following facts, it was contended, would Ihew this
neceflity. Though the duties on private trade are rated at
jT. 70, 000 yet on an average of the two years 1786 and 1787,
they amounted only to jr.55, 675. The India inveftment of
1786-7, coft ^.1,121,670, a profit was received of ^(".136,250;
In 1787-8, the Indiainveftmeht coft ^(".1,128,123: but hiltead
of a profit, there was a lofs /.7,oi i. In 1788, the private
adventurers, in coaft piece goods, did not realize more in
Britain, on their fales, than about feven fhilhngs and two-
pence or feven fhillings and four pence per pagoda on the ex-
change, owing to falling off in the demand for fuch goods
in London.

•

■ Under thefe circumftanccs, it is concluded, that the Opinions of

(■ r ■ ''**^ authors

only means for fupporting a commercial fund, equal to on this fub-
the charges, would be to lower the then rates of freight; ^'^'"
to employ fuch parts of the furplus revenue from Bengal,
as could be fpared from the China and Bencoolen invcft-
ments, to be applied to buy up, at the marketable dilcount,

the

•■^o

OF THE BRITISH GOVERNMENT

CHAR II.

the Company's paper, carrying high intcreft ; and to con-
tinue this appropriation 'till the demands for India goods
at home iliould produce a more profitable return.

Remedies
propnied by
them to re-
move the dif-
ficulties
which misjht
occur in the
final arrange-
ment of their
plan.

The authors oP thcfe memoirs feem to have been fully
fenfible, that thele meafures could not be carried into cfFe6t,
unlefs fome remedy could be devifed, by which to remove the
contraband trade, fo diftrefling to the Company's export and
import trade. For this purpofe they propofed, that penal
laws iTiould be ena6tcd, to affe6t fuch Britiihi fubjecls as remit
their fortunes from India to Europe on foreign bottoms ;
and that the moft rigid meafures fhould be adopted to deter
fmugglers. In illuftration they ftate, that in 1786, a profit
of about 12 per cent, was derived from the inveftments from
India. In 1787, a lofs was incurred by them. In 1789, the
future profits from the inveftments were eftimated at about
8 per cent, and if the moderate term of eighteen months
fhould be allowed, from purchafing the goods in India to
realizing the amount of the fales in London, the profits
would be reduced as low as about 5 per cent. Comparing,
therefore, with thefe fads and eftimates, the intereft which
the Company pay on their paper in India, from 8 to 9^
per cent, and intereft, on this intereft, when the pay-
ment was with-held beyond the year, and then taking into
view, that they themfelves might buy up this paper as foon
as it was iftlied, at a difcount, varying from 4 j to 1 2 per cent,
it was evident, that the exifting fyftcm required improve-
ment, even during the remaining period of their charter,
in order to bring their commercial fund into that ftate in
'^ which

AND TRADE IxM THE EAST INDIES.

231

which it would be able to fupport the trade. The meafures ^iap. ti^

above recommended, it was fiippofed, would have this

cffea-.

The fubftance of the obfervations, in thefe memoirs,
refpefting the fums expedlcd to be realized by the Company
abroad, during the remaining period of their charter, is
as follows : That the furplus revenue, applicable to in-
vcflmcnt, had been eflimated at about jT. 650,000, or
jT. 700,000 per annum ; but, by the Governor-general's
letter, of the 12th of March, 1789, this furplus, after
deducing jT. 50, 000 for Bencoolen, amounted to jT. 1,184,120;
with this furplus was compared the ftate of the debts

in India, which, on the 30th April, 1788,

including

the amount transferred home, amounted to j(". 10,007,410.
The affets in India, confiding of cafh in the treafuries,
bills receivable, ftores, import and export goods on hand,
had been valued at about jr.2,712,161 ; and the debts due
to the Company, were about j(". 2, 174,837, which, together,
amounted tOjr.4,886,998. It was next ftated, that the debt
at home, on 31ft January, 1789, amounted to ^^.i 1,048,490,
in which was included an unadjufted claim of Government,
of ^-500,000 for troops, &c. That the price of the capital
ftock was, about that period, at ^.i']^ per cent, which, on
jC.4,000,000, amounted to jr.6, 960,000. The debts therefore,
and the value of the capital flock, were ^T. 18,008,490, and
that the goods, credits, and efFe6ts at home and afloat out-
ward, were eflimated, in January 1789, atj(". 12, 109,832. Af-
ter combining the accounts at home and abroad, it appeared

that

Abftraa of
the aijwunt
of the reve-
nues abroad,
as applicable
to the claims
of the Corn-
pan V on the
Public.

232 OF THE BRITISH GOVERNMENT

CHAP. II. ti^at the Company's aflets fell fliort of their debts and
value of their (lock, by ^^.i 1,019,070, a deficiency which,
it was obfervcd, might be augmented by any excefs in the
eflimate of aflets, beyond what could be realized from thcin,
and it was thence fuppofed, that as many of the debts on
the quick, ftock might come under this defcription, the
deficiency might be taken at jT. 12,500,000.

It came, therefore, to be a matter of enquiry what
the furplus revenues of India, from 1788 abroad, and
1789 at home, to 1794, with the favings of intereft
might amount to ; and what debts might be fuppoleJ
to be difchargcd, by that period. The furplus revenue
was taken at ^.900,000 per annum, for fix years, and
it was calculated, that if this furplus was to be applied to - h

India only, for lefTening the debts at par, ^^ ith the favings 9M

of intereft, it would only difcharge ^(".6, 500,000. If then, '''I

jr.6,ooo,ooo fhould be made to follow the revenue, and the
aflets of the Company abroad and at home, fhould be taken
at the eftimates made of them at this period, the whole
would be juft equal to their debts, and to the value of
their capital ftock, at j^. 174 per cent. It is added, how-
ever, that the whole of this reafoning depends on the
profits of the trade after defraying the dividends and other
cxpenfes, being equal to the difcharge of the intereft
on debts to be transferred home, during the period of their
charter. '

Having

AND TRADE IN THE EAST INDIES, 153

Having thus given the fubftance of the obfcrvations CHAP. ir.
made in thefe memoirs, on the fubject of revenue and
profits on the trade, as applicable to the difcharge of the
Company's debts at home and abroad : We have only to fub-
join the opinions on the claims which the Company may
make on the Public, and on the compenfation which they
may expeft to receive from it, at the expiration of their term*

On the fubjecEt of their claims, the Company might pro- ^n""f*'^r''"
bably bring forward a demand of nearly ^(".5, 000,000, for claims.
money laid out by them, in acquiring and defending the pro-
vinces. They might alfo, probably, expedt intereft on
this fum, which would more than double it. They might
further flate the great lofles which their trade had fuf-
tained, fmce the acquifition of the Duannee, from the
neceflity which their commercial Boards had been under
to enlarge their inveflments, as the only means of bring-
ing home the revenues ; and add, that from this circum-
flance, the price of goods in India had been encreafed, and
the fale value of them, in Europe, lefTened by the large
quantities brought into the market. In this way, they
might ftate a charge on the revenues in India, for a fum
beyond the fix millions, which they had been calculated
to yield from 1788 to 1794; or a fum that would be equal
to yield to every ftock-holder, after the rate of 1 74 per cent,
as the laft fubfcription to the capital ftock was made at
that rate.

234

OF THE BRITISH GOVERNMENT

CHAP. II.

* .. '

On the fiibjed of compenfation, thefe memoirs fuggeft,
what they apprehend would place the Company in a
fituation to dilchargc their debts, before or at the period
when their charter is to expire; and enable the Public to
adopt the fyftems of government and of trade which were
recommended. For this purpofe, according to eftimates
then formed, it appeared, that a relief vv^ould be wanting
of j(".8oo,ooo in March 1791 ; of _^\6oo,cco in March
ly^^'y and jT. 250,000 in 1794; thefe fums, with a furplus
revenue of ;^'.65o,ooo per annum, inverted in goods, would
enable the Company to difcharge the intcreft, as well as
the principal of jr.4,000,000 of transferred debts. It would,
it was apprehended, be equally inexpedient and dangerous,
when fix years only of the Company's term were to run,
to allow them to raife this fum by a further augmentation
of their capital ftock, or by an encreafed bond debt, or to
allow them to fell the annuity.

Refult of the
ivhoic of
thefe obfer-
vations ;
fuggeding,

It is impofllble to withdraw from the interefting fub-
je6ts treated of in thefe memoirs, and not to remark the
very gradual manner in which the knowledge of Indian
affairs has been attained. One touchftone will try the
whole of thefe queft ions, viz. the aftual fituation of India,
and the aftual (late of the Company's affairs at the time.
Allowing the utmoft latitude in fuggefting political im-
provements, thefe may not be applicable to the (late of In-
dia, and giving to a fyftem of trade its mofl: entenfive charac-
ters, fuch a fyflem may not be reconcilcable to the flate of
the Company's concerns at the time. It certainly would have

been

AND TRADE IN THE EAST INDIES. 235

been as improvident to have made any violent innovation cha p, ii.
in the government which had been undcrftood and was
eftabhihed in India, as it would have been hazardous to
ftrike out a new line of commerce, while the old one had
been found produ6live. Without prefuming, therefore, to
decide on the merits or demerits of the preceding opinions,
we fhali only ftate doubts refpe6ting the pra6licability of
the innovations propofed.

I. In the firft place, it maybe afked, Whether the de- Fiift, adoubt

-.._ TJ- r lefpeLtlngthe

daring the fovereignty of His Majelty over our Indian pol- propriety of
feffions, would not have created an opinion among the na- reven'llcTom
tive States, that an oppofition had arifen between their for- t^^« "*''«•
mer allies, or mafters, the Company, and the Sovereign,
under whofe prote6lion, they had been told, that very
Company governed ? Could thefe native States or Princes
have been made to underftand the European ideas of bo-
dies politic and corporate, trading on a joint flock, and
exercifing a fpecies of delegated fovereignty for a certain
time? Or, if they could bave been made to comprehend
the meaning of a charter can we fuppofe, that they
would have entered into commercial connexions, or have
brought their money out of the fecuritics or concealments,
in which they had placed it, that they might veft it in
the new India fund, when they would at once have fecn
that this fund was under the management of an executive
power in Britain, not of the commercial body to which
they had been habituated ? It is concluding, therefore,
folely from paO; experience to fay, that this propofed fyftem

H h 3 of

236 OF THE BRITISH GOVERNMENT

CHAP. II. of government does not fccra to liave been fuited to our
Afiatic dominions, nor to be rcconcileable to the inftitutions
which the natives undciftood. It is not lefs proper, taking
experience as a teft, to infer, that (as the value of India
to Britain depends upon the trade through which the re-
venues had been brought home) the government muft be
engrafted upon the trade, in order to render the one effi-
cient, and the other productive.

Second, a 2. In the fecond place, it is left for confideration, whether

fin"^Ve'cf"' *^^ degree of power which the preceding plans propofed to
fc£t of this give to the executive government in Britain, might not have
the conftitu- bccomc a fubjc^t of political jealoufy to the other parts of the
Britifli go- conftitution. It is true, that refponfibility to Parliament is
vcri-ment. connctlcd, in thefe plans, with the exercifc of this executive
power ; but it is a fundamental principle in the Britilh
conftitution, that the executive, Ihall, at no time, be paf-
fcfTed of means of influencing the legiflative power. But even
fuppofmg that no grounds of political jealoufy would have
fubfifted under this fyftem, the arrangements propofed by
it might have been objefted to, judging from paft events
in the progrefs of Indian affairs. It propofes an entire fe-
paration between the political and the commercial bran-
ches. His Majefty is not only to be vefted with the fove-
reignty of India, but Avith the nomination to all offices of a
military and of a civil nature, from the Governor-gene-
ral to the fupernumerary ; and if the Company Ihould be
continued, the commercial fupernumeraries alone were to

AND TRADE IN THE EAST INDIES. 137

be in its appointment. What, perhaps, will be confi- CHAP. II.^
dered as lefs pia6ticable, the King's civil and military fer-
vants, were to have a fuperior rank to the Company's com-
mercial fervants, and to receive their allowances from the
new civil Indian government. Experience has (hewn the
neccflity of veiling in the King the power of appointing
Commanders in Chief; and, perhaps, the promptitude and
refponfibility required in a Governor-general and Council,
or Ptefidcnts and Councils, and the independence of cha-
ra6lei-, fo necellary to judges, might juftify the appointment
to thefe offices being given to the executive power. The
mihtaiy department alfo, might, perhaps, be transferred
to His Majefty, that an end might be put to the jealoufies
which have I'ubfifted between King's and Company's troops;
but to carry the feparation of the political and commercial
branches farther, might render the adminiftration in the
different Prefidencies, more complicated than it is at pre-
fent, and to eftabliih the diftindlivc ranks of King's civil
and military fervants, and Company's commercial fervants^
receiving emoluments and proteclion from different fupe-
riors, could not fail of producing perpetual animofities, as
well as become the fource of actions, tending to promote
oppofite interefts. If thefe remarks have their foundation in
the adtual ftate of affairs, the fydem of government mult
admit, more than thefe plans fuggeft, of the original tenures
upon which we acquired our dominions, and have (though
now it may be lefs necelTary) continued to pofTefs them ;
while to maintain our commeice, it muft be allowed to

remain

238

OF THE BRITISH GOVERNMENT

CHAP. II. remain conne6lcd with the revenue, as the trade is the only
chain \shich connects India with Great Britain.

Third, a 3. In thc third place, it may be objeded to the plan of

wtingThe an open trade to India, and of a trade under exclufive
future pio- privileges, to China, that, at thc time when it was

fpcnty ot the i => ' ' ' _

trade, if niift- ofFcrcd, the ftatements, upon which it relied, did not fup-
prcient plan, port it. The obje6l of the plan, was to break the line
of commerce between India and China, fo that the trade
to India was to reft upon itfelf alone, and the trade to
China upon itfelf alone. The iffue on the queftion will
wholly dej^end upon the amount of the revenue which the
plan propoicd to pay to the State.

According to thc ftatements upon which this plan pro-
ceeded, the export trade to India had yielded but incon-
fiderable profits; and, upon fevcral occafions, had been
attended with a lofs. From the ftatements alfo, it was
inferred, that the import trade from India had often afforded
but a fmall profit *. And hence, only a trifling intereft (if the
circumftance of the Company being their own inlurers be
brought into the argument) would have accrued to the
Proprietors on the lams employed in the trade.

Taking thefe as admitted refults from the ftatements,
let us fuppofe that the trade to India had been laid open.

* The profit was cfliinatcd at about ;f.go,ooo upon an inveftment of upwards of 3
million. 6

and

AND TRADE IN THE EAST INDIES. 439

and that the trade from it had been disjoined from the reve- ^CHAP. ih
nues. In this cafe the Company, as a body corporate, would
have been entitled to trade on their joint flock, and though
poflefled of the exclufive privilege of trading to China, would
have been nearly on a footing ^nth the other merchants, who
might have engaged in the trade to India. Placed in fuch
circumftances, they would have had no inducement to con-
tinue the export trade, but that of its yielding them a
profit, and no motive for engag'aig in the import trade (for
they now would have had no furplus revenues to bring
home) but that of its yielding them an adequate profit. Had
they employed the fame fum in any commercial fchcme in
Europe, which they employed in purchafing export goods
for India, they would probably have received a more pro-
fitable return. In this fituation then, the Company would
have had little temptation to continue the export trade to
India, to the fame amount that they did at the time,
and no great inducement to continue the import trade
to fo large an extent, unlefs in fo far as it might have
aided them, in turning to an advanage the exclufive pri-
vilege of trading to China, which this memoir propofed to
leave with them.

If we fuppofe the plan of an open trade to India to have
been adopted, at this time, two queffions of a public na-
ture would have arifen out of the meafure. In the firfl
place, Would the exports to, and imports from India, have
been as great as they had been in the hands of the Com-
pany?

K40 OF THE BRITISH GOVERNMENT

^CHAP.IL In the next place, Through what hands could Govern-
ment have brought home the furplus revenues?

On the firfl of thefe queflions, it will be admitted, that
the exports would have been regulated by the price which
Europe goods could have been fold for, in India. Had
thefe prices fallen lower, the exports mufl: have been
abridged, till the fcarcity of goods in the India market
had again brought the price to the flandard, at which it
would have yielded a profit to the merchant. The fame
reafoning applies to the import trade; for if the exports
either yielded little profit, or had been attended with a
lofs, then the private merchant, or Company of Merchants,
mud either have fcnt bullion or found credit in India, to
purchafe goods for the Europe market. Had matters been
brought into this fituation, the private merchant, no
doubt, from connexion with perfons who wiflied to remit
their fortunes to Europe, might have purchafed Indian
produce on credit. This expedient, however, would have
been precarious, and, at all events, expofed to diftant and
uncertain payments, fo that the India goods imported to
Britain (and thefe pay the duties and cuftoms toGovernment)
would have decreafed in their quantity, and the trade of fo-
reign Companies upon a joint ftock, have enabled them to
fupply the Europe markets with Indian commodities, inftead
of thefe markets, receiving them from the Englifh.

If we put the cafe, that the prefent Company, continu-
ing to trade on their joint flock to India, fhould have be-
come

AND TRADE IN THE EAST INDIES. 241

come the mod confiderable merchant in the miport trade, chap. u.
ftill it might have rapidly dechned, bccaufe competitions
with the private merchant, and with foreign Companies
would neceflarily have lowered the price of Indian goods
at the Company's fales.

Here the fecond queftion prcfents itfelf : Through what
hands, upon this plan, could Government have brought
home the furplus revenue? That this furplus muft be
realized in Britain, through the import trade, and that it
can pafs through no other medium, is an admitted and
eftablifhed fa6t. The fubje^l, therefore, for the con-
fideration at the time, muft have been, through what
channel, upon the plan of an open trade, could the fur-
plus have been brought home for the benefit of the Public.

If the furplus had been entrufted to the credit of the
private merchant, what fecurity could Government have
obtained, that the amount would be realized in the trea-
fury in Britain ; or what fecurity could individuals
have given, that they would bring the goods to Eng-
land, pay the duties to Government, or that they
Avould not have carried them to foreign markets, to
evade the payment of thefe duties. Had the furplus
of the revenue been entrufted to fuch merchants, they
would have had it in their power to make their own
terms, and might have reduced the value to the Public, either
by offering a depreciated rate of exchange, or by demanding

I i an

242 OF THE BRITISH GOVERNMENT

CHAP. H. an niueafonable length of credit. The inevitable confe-
qucnce would have been a decreafe in the carrying trade
of Great-Britain, and a diminution of the home duties and
cuftoms. If a preference had been given to the Company,
flill a fimilar depreciated rate of exchange and length of
credit might have been demanded ; and admitting their
ability to pay the poition of the revenues, which they
had taken credit for, their trade might have been unequal
to the purpofe of bringing home the whole furplus, and
they might have made their own terms, for the amount
which it might have fuitcd them to take,

Confcquence These hints go no farther than to fix attention on the

cxumming Commercial efFeft, which the open trade to India might

on^ofthi^s'i^ ^^^^ ^^^■> upon the means by which the revenues of the

doubt. provinces form a part of the refources of Great Britain.

There was, at this time, an opinion, that an experiment

might be made of an open trade to India. This experiment^

however, it was forefeen, might have had dangerous-

confequences, for while the revenues from the Indian

provinces can only be realized through commerce, it is

problematical whether any but the trade of a Company,

and upon the prefent fyflcm, could have given fecu-

rity to the Public, that the furplus would be brought

to Britain.

It is admitted, that the trade to China mufl remain a
monopoly, and in the hands of the prefent Eaft-India Com-
pany ;:

AND TRADE IN THE EAST INDIES. 243

pany ; and it is proved, in the preceding plans, that India chap. ii.
has, at leafl:, partially, and at times, contributed, in a
certain degree, to the China inveftment. It has been
flated alfo, that the Company have been making effoits
to widen the circle of their commerce from India to China,
fo as to diminifh the quantity of bullion required in that
market, where it is for ever to be loft to circulation. Would
it then have been expedient to weaken the credit of the Eaft-
India Company, by withdrawing from them the India part
of their exclufive privilege ? Would it have been prudent to
ftop the partial aids which India gives to the China inveft-
ments ? Would it not check the general fpirit of commer-
cial enterprize, if the efforts of the Company to extend the
circle of Afiatic commerce were difcontinued ? Would it not,
upon the fuppofition that the India trade had been, upon the
whole, alofmgone to the Company, have been hazardous to
take it from them ; and yet to leave the China branch in
their hands, when it is the connection of both branches
which has rendered the whole a profitable concern ? Would
it, in fine, have been advifcable to leave with them, what is
confefledly profitable, and yet to have withdrawn from them
what their immenfe ftock and eftabliflied credit alone could
fupport ? Could we have riiked, merely on fpeculation, what
we pofTefred in pra6lice, both as a national refourcc, and as
one part of our political importance ? Arts, manufa6tures,
and trade, grow not out of plans : they fpring from accidental
events; and from political wifdom, foftering and bringing
th-efc events into a confolidated fyltem. If we are to de-

I i 2 cide

a44 OF T H E B R I T I S H G O V E R N M E N T

CHAP. II. cide from the hiftory of mankind, we fliall find fuch
'" fyflems rapidly to have difappeared, -whenever the ancient
channels through which the trade has run have either been
fliut up, or when the ftreams which have pafled along thefe
channels have been abforbed or made to feek their way
over trails where they might be divided or obftructed in
their progrcfs.

Fourth, a a j^ the laft place, it is left for confideration, whether,

doubt whe- . ■^

tiier upon cven if the debts of the Company could be difcharged by

debts' of the^ the time at whicli their charter expires, and whether, even

cmlw^be dif. ^f ^ compcnfation could be given to them, for all the rights

charged, and which tliev mav funpofe themfelves to relinquifh to the

the cxpeif^cd . . , ,

compenfation Public at that period, the State could adopt any other
fyflemof Indian affairs, than that of leaving the coUedlion
of the revenues with a Company, granting to it an ex-
clufive privilege of trade, within the fame limits, as the
prefent ; and retaining a controul over the appropriation
of the revenues, and exercifing a refponfiblc executive
power in India and in Britain ? If the event could ac-
tually take place, that the Company's debts fliould be
paid off" by March, 1794, and that the Public fliould be
able to make them a realonable compenfation for all their
claims, one of two confee]uences muff: follow ; either the
adoption of fome fuch plan of government and trade, as we
have been confidering, or entering into a new agreement
with the Company, to prolong their exclufivc privilege
for a fpecified number of years, upon their paying an
adequate fum to the Public. From the aduai ftate of their

debts

•riven.

AND TRADE IN THE EAST INDIES. 245

debts, at the period thefc plans were fuggefled, the liquida- CHAP. ii.
tion of them, by the term referred to, could not take
place ; and from the war, in which neceffity and policy lately
involved the Company, this confummaiion is ftill more
diftant. It is, therefore, unneceflary to reafon on an
hypothefis, becaufe fuch reafonings can be of no pra6lical
utility ; let it fuffice to remark, in concluding thefc obfcr-
vations, that, it is for the intereft of the Public, fuch mea-
fures fhould be devifed, for enabling the Company to dif-
charge their debts, or, at leaf!:, for putting them into the
progrefs of being jiaid off, as may give frefli fpirit to the
trade, and enable them to continue their efforts for enlarg-
ing the circuit of it. No meafures feem better calculated
for producing thefe ends, than feme of thofe which have
been propofed in the preceding plans. The intereft of the
Company muft go hand in hand with that of the Public,
which ought to participate with its tenants in the profits
of the revenues. This end may, perhaps, be effedted, by
inferting among the conditions of a new agreement with
the Company, that they fliall pay certain fums to the
Public, at fpecified periods of their term, if Parliament,
upon confidering the reports to be made by the Commif-
fioners for Indian affairs, fliall be of opinion, that the ft ate
of their funds is equal to the difcharge of fuch payments.

The obfcrvations which we have made on the preceding Temunatlori
plans, will have lliewn, that, near as the approaching expi- doubt^s.*^
ration of the Company's term was, ftill many fubjefts

required

2^ OF THE BRITISH GO VP:RNMENT

CHAP. IT. j-equired to be more fully examined, before any plan could
be formed, fo as to meet the wilhcs of the Public, refpe6t-
ino; Indian affairs.

— inapianfor Among the enquiries which were inftltuted, and the
vciVmg the opinions which were formed, from the refults of thefe en-

Siatc with the 1

tciiitorics, quirics, the prevailing idea Icems ftill to have been, " that

and leaving ^, i i , • • i ■ • i

the trade un- Government (hould take mto its management, the territorial
live^ritilcge polTemons of Grcat Britain in India, but leave the Com-
totheCom- pany with their exclufive privilege of trade for a fpecified
number of years."

With a view to introduce a plan upon this principle,
the following queftions have been afked.

Preliminary I. " What buildlugs, of cvcry dcfcription, would be

iPctingthe' required by the Company, for the purpofes of trade? and
buiiaings what buiklinsrs would be required by Government for the

winch woiiid _ . . . . -

br- required purpofcs of the civil, military, and revenue departments r"

mcnt, nnd To this a general anfwer has been given with refpecl to

i-lbere'-^ Bengal. Here, it was thought, that all the buildings

rained for the j^ the Old Fort and at Diamond Harbour, all thofe at

i::- j'ai-.vcr. the Bankfaul, and all the dwelling houfes and warehoufes

at the different commercial refidencies and aurungs, which

are, at prefent, the property of the Company, would be

required for the pnrpofes of trade. That all forts, barracks,

magazines, florehoufes, and all buildings not included in

thisdefcription, but which are, at prefent, public property,

would

AND TRADE IN THE EAST INDIES.

247

would be required for the purpofes of civil, military, and chap. n.
revenue bufincfs.

frtcr given »0'
this tiueftion.-

Upon this queftion, and the anfwers to it, it is to be Remark up-
oblerved, that the right of the Company to its pub'ic pro-
ferty, is admitted, though, as a part of their dead Jlock^ it
has a reed, different from its nominal value. It, perhaps,
would be impoffible to refund to the Company, the fums
which they have paid for many of the buildings required for
the military fervice alone, fuch as the cantonments at Ber-
hampore and Dinapore ; but it might be lefs expenfive to
give a reafonable compenfation for them^ than to build
others. If the Company are to be merchants only, they
could have no ufe for military cantonments. If thofe
which they have built, fhould be abandoned, it might,
perhaps, be dangerous, with refpe6l to the natives, who
might feize on them, and if allowed to fall into ruins, it-
would fcarcely be equitable wath refpeil to the Company..

2. A SECOND queftion, connedled with the preceding;
was, what fum would be required to purchafe the claims
of the Company on the buildings neceffary for the civil,
military, and revenue departments ; and to what fum would
the building of others, for the fame purpofes, amount ?
In anfwer, it was ftated, that thefe buildings could not
be eftimated without public meafuremcnts and furveys,
which, in themfelves, would be expenfive; and that, at
all events, as dead Jlocky it would be impoffible to calculate

theiD

Second qnefi
tion relpect-
ing the fum'
which would
be required-
to purchafe
thcfe build-
ill;^ s fVoni the
Conipaii)-, .
with the an*
fwer.

248

OF THE BRITISH GOVERNMENT

CHAP. II.

their value, cither from what they originally coft, or from what
the materials of them would, at prefent, bring; but that
military barracks, in every refpeft, preferable to them, might
be confl:ru6leJ for half the amount of the value which
would be put upon the folid contents of the mafonry and
timber in the old buildings.

Third quef-
tion iclpeft-
injj the funi
which the
Company-
would alk, as
the value of
their militaiy
ilores, with
the anfwer.

3. It was alked, in the third place, " what might be
the fum which the Company would expedl for their mili-
tary flores ?" To this an anfwer was given, " that the
eflimatc, in the books of the military board, was current
rupees, 52,30,000, or ^(".523,000, and that this had always
been ftatcd under the head oi quick Jfock." It is, perhaps, un-
neceffary to make any other obfervation upon this particular
fubjcd, than to fay, that if the value of the military ftores
was to be paid for, under the propofed fyftem of leaving to
the Company the management of their commercial concerns
only, they certainly would have an equal claim to the
value of their fortifications, allowed to be public property,
though, from the mode of keeping their accounts, the
value of thcfe could not be fo nearly afcertained, becaufethe
fums laid out on them, had always been included under the
head of Jeiui Jiock *.

* There is this difference between the value of ftores and fortifications, that
the former is eftlmated on the quantity adually in the ftorehoufes for ufe, whereas
the value put on the latter, confifts not only of the original coft, but alfo in that of the
repairs which have been annually made upon them.

5 4« Ix

AND TRADE IN THE EAST INDIES.

249

ic an-

4. It was made a fourth queflion: What offices come chap. 11.
under the defcription of civil, mihtary, revenue, and com- Fourth ^u,c
mercial departments ? and what are the alJowarfces annexed F'°" ''^''pe'a-

* ing the offices

to each office? The anfwer with refpe6l to the Bengal Pre- '\eid under
fidency was, in fubftance, that the mililary offices would andm!deTthc
appear in the returns. The offices in the revenue depart- ^°th''th"^'
mentf are thofe belonging to the Board of Revenue and ^"^'■•
the Khalfa ; thofe fubfervient to the collection o^"
the cuftoms, to the fait branch, to the fuperintend-
ence of the opium manufafture, to the adaulets, and, in
general, to the collection of duties or rents of every kind.
The offices in the commercial department^ are thofe of the
Board of Trade, thofe for the management of the import
and export Warehoufes, and thofe of commercial Refidents
or Agents. The offices, under the head of Civil Department^
comprehend all the Company's civil fervants who are not
included in the two preceding departments. With refpeft
to emoluments, that the books of the Military Auditor-
general, and Civil Auditor, would, at once, fhew the al-
lowances of every office, except the advantage which com-
mercial agents may derive from private trade.

According to the fyflem, with a reference to which this
queftion was flated, the civil revenue and military depart-
ments were to be placed under the executive government at
home, and the commercial department was to remain under
the Company. Government, of courfe, would fix the duty
to be paid on any article of trade, while the commercial

K k board

Remark on
thii anfwer.

250 OF THE BRITISH GOVERNMENT

CHAP. ir. board Avould be, from the nature of the cafe, making fre-
quent rcmonftrances againft fuch duties, as incompatible
with the fuccels of trade. If the duties on trade were to be
impofed by the commercial board, as fervants of the Com-
pany, the trufts repofed in them would be at variance,
for they would be both impofing and paying. The links
in the chain are revenue and profits of trade, applied
to fupport the civil and military efi:ablifliments, to pur-
chafe inveftmcnts, to pay off debts, and to afford divi-
dends on the capital ftock. To keep them connected, the
offices mufl be either entirely in Government, or entirely
in the Company under the controul of Government. No
fuch difficulties could occur with refpe6t to the military
offices ; the army being only the coercive inftrument of the
civil power.

Fifth quefti- 5- It was ftated, as a laft queftion, What number of
on refpefting fupemumeraries would be wanted annually for the civil and

the number x ■'

of civil and rcvcnue departments ; and how many Cadets and Enfigns

military fu- , , , • i n ,- i • • i

pcrnumera- would be fcquircd annually, to lupply vacancies in the
ar^Hxr"^^^'' military department? The anfwer, for Bengal, was that
about fix writers would be annually required, the number
for the fubordinate Prcfidencies, might be fuppofed lefs.
That eftimating, by the average number of Enfigns, who
have been brought upon full pay, for three years after the
late peace eftablifliment was arranged, about fixteen Enfigns
would be annually required for Bengal. It is eafy to form a
conje6tuie, from the Madras and Bombay military eftablilh-

* meats.

AND TRADE IN THE EAST INDIES. 251

ments, compared with that of Bengal, what number would cha p, ii.
be neceffary for each of them.

Upon looking back to the principal difficulties in the The refuit of

. . theie enqui-

preceding plans which have been detailed, it muft at once rios was, that
occur, that the queftions were calculated to dilcover whe- [hc^Llnt "*
ther fuch difficulties were real or not, Thefe anl'wers have circumihn-

ces, was im-

obvioLifly the tendency to remove from the public opinion* practicable.
the apparently politic, but really impra6ticable fcheme of
vefting the civil and military power with the adminiftration
of the revenues in the State, and leaving the commerce
alone to the Company. In theory, this might be good,
in pra6i:ice, the anlwers to thefe queflions Ihcw, that it
would be hazardous. The Indian provinces have been
acquired and made of effedlual lervice to Britain through
commerce, and through it alone, perhaps, can they either
be preferved to the empire, or made part of its produdivc
refources.

These confiderations brought forward the following: plan, The laftpkn

, „ ,^ r r r X , r "hich has

VIZ. to renew the Company s term ror a Ipecihed number of beenpropofcd
years, to continue them in the management of the pro- thc'compa-^
vinces, but. to fender the controulins^ power more efficient, ">''^ charter,

° ^ ' and to render

than the reglating a6l of 1 784 had done. the controui-

ing power
more effi- '

The obfervation with which the propofer of this plan

, . . ,. r .... , , General rea-

introduces it to notice, dilcovers his opinions to have been ions a%nea
the refuit of ftudy and of local information. Many weighty i*;." '"'^"^''"^
reafons (he remarks) occur againft the plan of feparating

K k 2 the

2_52 OF THE BRITISH GOVERNMENT

CHAP. n. the revenues from the trade, and no folid advantages could
be derived from placing the ci\il and revenue depart-
ments under thefole direction of the executive power. If,
on the one hand, the foftering aid and protection, and (what
is of equal importance) the check of the governments
abroad were withdrawn from the commercial department,
the Company would not long enjoy a new charter, but
foon be reduced to a flate of bankruptcy ; and if, on the
other, the commerce was not connedled with the reve-
nue, the befl: meafures which could be devifed for the
management of it, would not render it produclive.

Vaiiations The alterations propofed, are chiefly on the following

ftnrfvftcm ' fubjedts, viz. on the conftitution of the Court of Diredtors;
pmpoieU in ^^^ j.^g iilans upon which the commerce is in future to be

«, VIZ. ' '

conducted ; on the conftitution of the Indian army ; and
on the connedlion to be eftabliihed between Government
and the Company.

To new 1110-

FiRST, the author of the plan is of opinion, that the
del the Court numbcr of the Directors is too great to manage bufmefs which
requires fecrecy and political difcretion, and that this Court
cannot be made refponfible. To remedy thefe evils, it is pro-
pofed, that the number fliould be reduced to twelve, or per-
haps to nine. That they ihould have ample falaries, but be
prohibited from having any intereft in, or conne(5lion with
the contrails of the Company, or indeed any intereft in the
Company's affairs, as individuals, diftinft from their fhares
in the capital ftock entitling them to be Directors, becaufe
5 this

AND TRADE IN THE EAST INDIES. 253

this would interfere with the duties of their office. That CHAP. 11.
the Dire6tors ought not, in future, to have the power .
of appointing Governors, Members of Council, or Com-
manders in Chief; but that in the choice of the Mem-
bers of Council, the' executive power fhould be limited
to Company's fervants, of at leafl twelve years {landing;
afllgning as a reafon, that the fafety of the provinces, as
well as the fervice of the army and of the fleet in India,
require that thefe offices {hould be filled by perfons con-
verfant in Indian affiiirs, as well as immediately an-
fwerable to Government. That the Dire6tors, however,
fhould have a circumfcribed management of the whole
of the Britilh interefts in India ; that is, they {hould be
allowed to frame regulations for the appointment to offices
in India, and to check and controul every article of expendi-
ture in the Prefidencies : the greateft attention ought to
be paid to the reprefentations of the Direftors, refpeding
the condu6l of the Governors, Commanders in Chief, and
Members of Council. If, after fuch reprefentations, redrefs
of a grievance complained of, fliould not be given to the
fatisfa6lion of the Dire6lors, that then they fliould be vefted
with the right to infill on the recal of fuch Governors, &c.
and to inftitute profecutions againft them before the Court,
which has been eftabliilied for the trial of Indian delinquents.

Second, he is of opinion, that there is no obje^ion to To open the
opening the export trade from Britain to India ; but that to'Tndi^* ^
the principal articles in the import trade from India to
Britain, fliould be confined to the Company. This lafl

raeafurc.

J34 OF THE BRITISH GOVERNMENT

CHAP. II. rneafuie, he confiders as neceflaiy, becaufe, without it, it
nppeais doubtful, how far it could be pra6licable to remit
the furplus revenue by bills of exchange ; or poffible to pro-
vide for the inveftments of the goods which pay the home
duties to the ftate, and which bring foreigners to the Britiili
market. He contrafts this plan with the obfervations which
have been made in the preceding plans on the Company's
trade, and with the fituation to A\hich their commercial
fervants would be reduced, if a feparation of the revenue
and the trade fhould take place. To fay, that when the
Company wei;e merchants alone, they were richer than
at prcfent, and that they would again become fo, if re-
duced to be merchants only, is to forget that circumftances
are totally changed. The Europeans, who at that time
refided in India, were few ; at prelent, they are numerous.
Then, there exifted no competitors to the Company ; now,
they are to be found in every aurung. Under fuch"a change,
the Board of Trade could not make up mveilments ;
no man of credit would remain in the Company's iervice,
and thofe who would replace them, would be held to be
of an inferior rank to the fervants a6ling under His Ma-
jefly's appointment. The contempt with which the Com-
pany's fervants would be treated, would foon become
obvious to the natives, fo that whatever abilities they
might poflefs, or however liberally they might be re-
warded, they would foon become of no ufe to the Company.
To thefe confiderations, perhaps, bethinks, might be added,
that if the Company were confined to commerce only,
jobbing at the India-houfe would encreafe to fuch a de-
gree, as to produce a bankruptcy. 1 he more extravagant
fchemc, of throwing open the trade, would have the ob-
vious.

AND TRADE IN THE EAST INDIES. 255

vious efFe6l of encouraging fpecnlations, debafing the CHAP. Ii.
quality of the goods imported from India to Great Britain,
and, might occafion the lofs of this valuable branch of the
trade. What he confiders as an infurmountable objection
to fuch a fcheme is, that if the relation between the Go-
vernment and the trade of India fhould be dilTolved, the
Britifh provinces would be over run by defperate fpecu-
lators, from all parts of the Britiih dominions; indeed,
from every part of Europe, v/ho would purchafe goods of
any quality ; ruin, of courfe, the quality of the Indian
manufactures; and, by fending the produce of them,
indifcriminately, to all the European markets, foon put
a period to our trade. No man, therefore (he con-
cludes) acquainted with the manners of the natives,
and with the internal flate of India, would ferioufly pro-
pofe to throw the export trade from India entirely open, if,
in forming his judgment, he took into confideration
the importance to the natives, of preferving their manu-
factures ; and no man who had traced the relation which
thefe manufactures bear to the revenue, and which both
bear to our home refources, would think of a fepa-
ration, that would render it impracticable for the Com-
pany to make up their inveftments, or to continue their
trade.

Thirdly. He is of opinion, refpeClIng the conflitution of To new mo"

1 1 1 ■!-> ,T 1 1 11 1 1 1 del the army.

the army, that the European troops mould all belong to the
King, fince experience has fliewn it to be impracticable for
the Company to find recruits for keeping up a refpeCtable

military

.56 OF THE BRITISH GOVERNMENT

CHAP. II. military eftablilliment in India. That, however, it is highly
expedient, that the native troops fliould belong to the Com-
pany, and that the officers deftined to ferve in thofe corps,
iTiould continue to be in their appointment. The cadets for
thefe corps ought to befentout at an early period of life, and
Ihould confider thcmfelvcs to be entirely devoted to this parti-
cular fervice. Without a perfedl knowledge of the language,
and a minute attention to the cuftoms and religious preju-
dices of the Sepoys, it would be impoffible for their officers to
gain their confidence and attachment, or to command them
with effe6l. A practice too, would, of courfe, be intro-
duced, if the Sepoy officers could exchange into the King's
army, of felling their commiflions to ruined officers in
England, who, ftrangers to. and unfit for this foreign fer-
vice, would be held in contempt by their inferior officers,
and in abhorrence by the native foldiers. As laws can-
not be made to bind the King's prerogative in the exchange,
or in the promotion in His army, it therefore would be the
fafefl meafure to make the Sepoy fervice diftinft from the
European, and to leave the patronage of it with the
Dire6tors.

To fix and

Fourthly. The obfervations on the conneflion which
define, more ought tofubfift between Government and the Company, are
at prefent, in fubftauce as follows : that the powers to be left with the
the^indiT° Court of Dire6lors, and thofe to be given to the Commif-
Commiffion- fioners for Indian afi'airs, fhould be clearly and diftinctly

ers, andotthe J ■'

Court of Di- defined, not only as to their extent, but as to the mode of
exercifing them. That the Court of Diredlors Ihould have

the

AND TRADE IN THE EAST INDIES. 257

the appointment of writers for the civil branches of the fer- chap. ii.

vice, and of Cadets for the native troops ; and alfo the

right to make fuch regulations (fubjedi:, however, to the

approbation of the controuHng power) as may, from

time to time, be thought necefl'ary for every part of the

foreign govermnent. That the Commiflloners for India

affairs flwuld be vefted with the right of inf[5e6f ion and con-

troul over every branch of the Company's concerns, without

excepting their commerce. That the Dire6lors fhould

not have the power of appointing or of recommending any of

their fervants to fucceed to fubordinate offices in India ; but

that this power fhould be entrufted to the governments

abroad. Such appointments have often been the confe-

quences of intrigue and of folicitation at home, and always

have been produ6live of fa6lion and of anarchy abroad. They

have uniformly had the tendency to weaken the authority of

the governments in India ; fo that while the Prefidents and

Councils w^ereapparently vefted with power andrefponfibility,

they were frequently checked in the exercife of the one, and

could .not, of courfe, be called upon for the other. That it

would be equally improper, to veft Government with the

power of appointing to fuccelhons in the fubordinate offices

in India, as this might have fimilar inconveniences, and

would weaken the authority which this plan propofed to

give to the foreign Prefidcncics.

Such is the outline of this plan, with the reafons *

offered for the alterations which it recommends. The
cbfervation with which it concludes, " that it is caficr

LI to

258 OF THE BRITISH GOVERNMENT

CHAP. II. to point out defects in any plan, than to fubflitute another
good one in its place," is an apology for fubjoining the
following remarks upon it.

Remarks on FiRST. On the alterations to be made in the conftitution

wiiich thefe of the Court of Directors, it is doubtful ho\v far the re-

wmiTa'Tave du(5iion of their number would render them more refpun-

?" ^]!t-!-^' fible ; or how far refponfibility, to the Public, is com-

fponfibility ...

of the Court patjble with their chara6ler. To the Proprietors, indeed,
who ele6l them, they are anfwerable for their conduct
in the difcharge of that truft which has been repofed in
them ; but the Proprietors, in themfelves, form a fmall
part of the Public, and can only be fuppofed judges of
V the profits which the trade yields, not of political

meafurcs. Indeed, if the controuling power be to extend
over every part of the Company's concerns, the refpon-
fibility ought to be in it alone. In this way, it would be
perfectly in coincidence with the principles of the con-
ftitution, as eftablifhed and underftood by the nation
at large ; and could, agreeably to this fyftem, be made
efficient, when reports on Indian affairs were made to Par-
hameut.

—and on the It is doubtful, in the next place, on the propofed con-
powe°'s of ftitution of the Court of Diredlors, how far it would be
expedient to give them the right of infilling on the
recal of Governors, Commanders in Chief, or Members of
Council, in the event of complaints againft them, not
being redrcffed to their fatisfaclion : and it is farther

3. pro-

powers
this coui t.

AND TRADE IN THE EAST INDIES.

259

problematical, how far it would be proper to give to the chap. 11.
Direftors a power of inftituting profccutions againft fuch
Governors, Commanders, or Members of Council, in the
court for the trial of Indian delinquents. Might not fuch
rii;ht put it in the power of an individual, if of a reftlefs or
vindi6live difpofition, to bring forward reprefentations
againft the firfl and beft men in India ; recal them, at a
time, when, perhaps, their fervices were of the utmoft im-
portance to the prefervation of the provinces ; and diftrefs
them with a profecution, which though ultimately found
to be groundlefs, might, from the expenfcs attending
it, ruin fervants of the Company, who had merited
rewards ?

On the fubje6t of the export trade to India, the propo- RcnLnkson
fition, however fpecious to the manufadluring intereft effefts'^of\he
of this country, would be extremely difficult in pradlicc. "p*:" '^'^p^''

■; ' _ -' _ 1 trade on In-

Without entering into the qucftion, how far it would be dia.
pofTible for the Company to render the Indian revenues
produ6live in Britain, if the export branch of their privilege
iliould be taken from them ; the difficulty is to find out,
how the open export trade could fupport itfelf, unlefs the
import trade alfo Ihould be entirely laid open. The ihip
of an exporter mull, upon this fyftem, return either
wuth the produce of his cargo, in coin, or in fuch ar-
ticles as might be allowed, which, from the competition
that would naturally arife, would foon. yield little or
no profit. If the expedient fliould be propolcd of al-
lowing fuch traders to find a cargo in other countries

L 1 2 within

z6o

OF THE BRITISH GOVERNMENT |

CHAP. II. within the Company's limits, they would, of courfe, re-
fort to China and to the iflands ; and as it v/ould be im-
pofTible to prevent their difpofing of cargoes, procured at
either, before they returned to Britain, the foreign markets
might be fupphed with China goods, independently of the
Company's fales, and confequcntly the revenue aiifing from
the imports would be abridged, if not entirely loR. It
is indeed difficult to fay what mcafures ought to be adopted,
which, at the fame time, would encreafe the exports and
yet prevent thefe confequences^

Remarks on On the fubje6l of ncw modelling the army, it will be
arran''-cmcnt Jidmittcd, that the inconvenienccs which have arifen from the
of the army, circumftanccs in which the Company are placed, with refpedt
to raifmg recruits, muft be totally removed, and that fome
cffe6tual mode muft be devifed for doing away the jealoufies
between the King's and the Company's troops. If the Eu-
ropean troops are to be the King's, the difficulty of finding
recruits will no longer exift, becaufe it has totally arifen
from the prohibition, under which the recruiting offiicer of
the Company is placed, toenlift men in the fame open man-
ner with the recruiting officer of the King. If, however,
the Company are to remain with the fubordinate manage-
ment of the whole of their Indian interefts, it will come to
be one of the principal fubjedts of confideration for Parlia-
ment, — How the Indian army can be modelled, in fuch a
way, as to become a perfedly diftinft eftablifhment from the
Britifli ; and how the European and native corps are fo to

■\

AND TRADE IN THE EAST INDIES. 261

be arranged in point of rank, that no caufes of jealoufy chap, ir.
between them fliall in future exift. There can be little diffi-
culty in declaring the European army in India, a diftindl
eflablillimcnt from the home army : nothing more is required
than to enadl, that the officer who enters into the one, and
acquires rank in it, cannot exchange with the officer who
has entered into the other, and acquired rank in it ; and to
fix the promotion in the Indian army upon perfe6lly diftindt
principles from thofe, upon which it proceeds, in the Britiih
army. It naturally, however, will become a fubjedt of dif-
cuffion for the Legiflature, whether feniority, at pre-
fent the principle of promotion in the Company's army,
fhould continue to be the principle of promotion in the
King's European military eftablifhment in India. The
great difficulty will be to adjuft the rank between
the Sepoy officer, who, under this fyftem, is propofed
to be left in the appointment of the Company, and the
officer in the European corps, who is to be nominated
by the King. The decifion upon this fubje^lmuft evidently
proceed from a review of the events, out of which our
military eflabliftiments in India have arifen.

To an accidental fuperiority in the art of war, the Eu-
ropeans owed their conquefts and their poflcffions in India.
Such fuperiority could be temporary only; for, in pro-
portion as the natives have had opportunities to obfcrve,
and to copy this art, we may prefume, they would be dif-
pofed to adopt it. Few of them have, as yet, copied it
with effi;(St; and, perhaps, the fafety of the Britiih pro-
vinces

26i OF THE BRITISH GOVERNMENT ^

CHAP, n, vinccs depends upon the continuance of the prejudices
of the natives, in favor of their ancient method of carry-
ing on war. In the fingle inftance in Vvhich any native
Prince has laid thefe prejudices afjdc, we have had expen-
five proofs of the difiiculty of refilling him. Monfieur
Bufly made hisconquefts with a corps lefs numerous than
the vanguard of our army in the late war in the Carnatic ;
Colonel Coote oppofed Hyder Ally, in 1763, with an army
lefs numerous than Colonel Baillie's ill-fated detachment.
It was with difficulty that the fame General, at the head
of 10,000 men, could repel the incurfions of Hyder Ally
in the war of 1 783. Our ideas of the timidity of the Sepoy
corps, have now turned into admiration of their fteady
difcipline and valour. As we cannot keep up a numerous
cavahy to oppofe the Indian Princes, our armies muft now
Z&. in great bodies. So fenfible were Hyder Ally and
Tippoo Sultan of this circumstance, that their leading
object, in their late wars, was to cut off our detached
parties, and to avoid general engagements. The inference
is obvious; a large military force muft be kept in India;
only a very fmall part of it can be compofed of Europeans,
the greateft number mud neceffarily be native troops,
commanded by European officers. According to the plan,
we have been confidering, the Cadets for the Sepoy corps
are to be in the nomination of the Company, and their
fervices are to be limited to that corps. It will, therefore,
be for the confideration of the Lcgiflature, to devife an
arrangement by which the ranks of King's European, and
Company's Sepoy officers may be equalized; particularly

after

AND TRADE IN THE EAST INDIES.

263

after either have attained to field rank, when the queftion of
command muft often occur, and when preference to the
one or to the other, would have the efFe6l of continuing;
jealoufies detrimental to the fervice, like thofe which,
at prefent, fubfifl between the King's and the Company's
armies.

CHAP, IT.

On the fubjefl of the connexion propofed to be efta-
blifhed, between the executive government and the Com-
pany, much delicacy will be required. It is now perfe6tly
underftood, in Britain, that no greater fliare of patronage
ought to be vefted in the executive power, than is required
to exercife that power with effe61:, and with advantage to
the Public ; and that the refponfibility to which the execu-
tive power is conftitutionally bound, is a conftant check
upon the improper ufe of it. It is alio underftood and
admitted, that unlefs the perfons to be employed by the
executive power, are fubje6t to its perpetual controul, it
would be impofliblc to make the CommifTioners for the
affairs of India refponfible for the meafures tliey may fol-
low. Though then, this plan certainly furnithes many of
the greater lines for a fyflem of Indian affairs,, it leaves
the lelTer ones to be filled up, and thefe will become matters
of not lefs difficult arrangement. The appointment of
Governors, Councils, and Commanders in Chief, by His
Majcfty, from whom they are to receive their inflruc-
tions, and to whom they are to be anfwerable, in the
firft inflrnce, may, at ibme future period, be a meafure of
policy. The declaring the whole European corps, ferving,

iii-

Remaiks on
the propofed;-
connexion
between the
executive
Government
and tlie Court
of Direcilors,
as it may af-
feft the con-
ftitution of
Great Biitain
or the intc-
refts of the
Company.

264 OF THE BRITISH GOVERNMENT

CUM'. II. in India, to be an eflablilliment, under His Majeflv, dif-
tinct from the Briti(h army, would be a meafure calcu-
lated to fupply the Indian army with recruits, and to
terminate difTcnfions among the officers. Whether, after
the firfl nomination of a Cadet, either by the King or by
the Company, promotion fliould go on by feniority, at
Icaft, as far as the field rank ; and whether, after that
point Ihall be reached, the promotion may not be left
with the Commander in Chief, in India ; are queftions of
expediency, which can only be folved, by a full confi-
deration of the nature of the fervice and of the afpects
Y/hich, from time to time, it may affume.

As by this plan, the nomination of CaJets to the
Sepoy corps is to be left with the Company, the patronage
of the executive power is limited, in the only article, re-
garding the military department, in which it admits of
limitation. It will readily be allowed, that as the Sepoy
Cadets are to devote their lives to a particular fervice,
become acquainted with the language, cufloms, and re-
ligious prejudices of the foldiers, every encouragement
which their country can give them, or the fervice can
afford, fhould be paid as a debt due to merit. As by this plan
alfo, the nomination of the writer, or civil fupernumerary, Cj

is to be left with the Dire6tors, they would retain the au-
thority which they are beft qualified to exercife. It will,
however, become a queftion, in the final arrangement of
this part of the fubjecl:, whether, even upon this plan,
the Sepoy officer ought not, upon his attaining the field

5 rank,

AND TRADE IN THE EAST INDIRS.

26.5.

rank, tobevefted with a King's commiffion, and entitkd, CHAP.il.
in common with the officer of the European corps, accord-
ing to his (landing, and merit, to be entrufled with a
command.

Having thus taken a view of the progreflive plans which
have been offered for the government of our Indian pof-
feffions, and regulation of trade, to the Eaft-Indies ; and
having narrowly watched the approaches, which, in each
of them, have been made to the a6lual flate of Indian affairs, ;
having alfo fuggefted, in illuftrating thefe plans, the refcrcn--
ees which muff, on all occafions, be made to the mixt tenure
of conquefl and of treaty, upon which we acquired and ftill
continue to hold our dominions, and to the relation which
the revenue bears to the commerce, as well as to the
domeftic refources and trade of Britain, we have colle6led
the information, from which the Legiflature may either
form a plan, or examine fuggeftions leading to one, upon:
this great national fubjeft. To the natives of India, a
government muft be given which ihall accord with;
their prejudices and characters ; to the Proprietors of India
ftock fecurity for the value of their property ; to the Directors-
regulations accommodated to the duty they owe tp the Pro-
prietors ; to the State the means of more fully uniting z.-
foreign dependency with the empire; to the commercial
intereft, imports and exports, which fliall furnilh materials
for the fkill and induftry of the manufacfturer ; and to the
nation an extending navigation, and a revenue which fhall
at once add to its power and to its credit.

The end pro»
j3ofed in this
review, is 10
prep:ire the
Public to
form, 01" to-
adopt :l fyf-
tem for In-
dian affairs,
founded on
the evidence
ofcxpcricivce,.

M rn.

With?

266 OF THE BRITISH GOVERNMENT, &c.

CHAP. II. With the objedt of reconciling thefe feemingly various,
but really conne6ted interefts, we may now, with propriety,
draw into notice the outlines of a plan for the foreign go-
\ ernmcnt and trade of Britilh India, and for the domeflic
regulation of Indian affairs, that fliall reft on the folid evi-
dence of experience. The probity and good fenfe of the
Public will examine every propofition in it, and adopt a part
or the whole, as they may be coincident with the fpirit of
the conftitution, and calculated to preferve and to promote
the commercial eminence of Great Britain.

:.i

HISTORICAL VIEW

OF PLANS

FOR THE GOVERNMENT AND TRADE OF

BRITISH I N D I A, &c.

CHAP.

IIL

COMMERCIAL AND POLITICAL PRINCIPLES ARISING OUT OF
THE NATURE OF THE TRADE TO THE EAST-INDIES; AND
OF THE HISTORY OF THE COUNTRIES WITHIN THE COM-
PANY'S LIMITS, WHICH SEEM NECESSARY TO BE RECOL-
LECTED IN FORMING A PLAN FOR THE FUTURE ADMINI*
STRATION OF INDIAN AFFAIRS.

CONTENTS.

Importance of the Br'itiJJ^ PoJJeJfwns and 'Trade in the Eaji-Indies.

— Eve?its and C'lrcwnjlances upon zvhich the Plan to be adopted

for ibefe national fubjech mujl rc.p— Commercial and poUtical

Principles to be rccolle&ed in deviJitigaPlanfor Indian Afairs.'-^

I. The Legiflature may difpofe of the Britifh PoiTcl-

llons in Hindooftan, and Trade to the Eaft-Indies.

lUuf ration from the progrejive Grants and Charters given by the

State to the Eaji India Cotnpany. Refult.—Oppo/ite Argu-

mejits which have been maintained up07i this Rcfult. II. The
Eaft-India Company, as a Body Politic, mufl either
have its Charter renewed, or be enabled to difpofe of its
Property, difcharge its Debts and realize the Value of
its Stock.— Il/ujl ration from the Nature of the origina/
Conjlitution of the Company— from the Nature of their quick
and dead Stock Abroad and at Home— from the Title which
they have to interfere with Britifh Merchants trading to the EaJi-
Indies \— from their Obligation to dfcharge their Debts',-—
and from their Claim to the Value of their Proprietary Stock.
III. A Syflem for the Eaft-India Trade muft arife out
of the Nature of that Trade, which might be loft to
Britain by any Attempt to turn it into a new Chan-
nel.-— ///«/?rfl//o«,—-/rw« the Sources of the Trctde^— which
'Originated in accidental . Events,— that were improved on by
political Meafures.—Firf Dcjiination of the Eajl-India Com-
pany s Ships. — Progrejfive Lines of their Commerce, till the

Acquiftion

270

OF THEBRITISH GOVERNMENT

Acqu'ifitlon of 'Territories.— Change produced in it by the
War of ij^6.—It no^.v affumes two diftincl Afpccls. i. Trade
to China.— Ex/o/Zx from Britain , to China in Bullion and in
Goods, previous to the pqfftng of the Commutation A£l.—
Exports from India to China in Bullion and in Goods ^ pre-
vious to pafjing that A^.— Bills draivfi on the Directors
from Canton. ---Pritne Coji of Imports from China to Bri-
tain.-— Amount of Sales.— -Commercial Principle upon xvhich>
the Commutation Acl ivas founded.— -Remote and immediate
Circumflances which reduced this Principle to Pra£fice.—Com~
mutation Acl explaijied.—Effecls of it when paffed into a Law.
'—On the Exports from Britain to China.— -On the Amount
of Bills from China.— On the Prime Cojl of Imports on the
Amount of Sales at Home.— -Effect of the Commutation Acl
on foreign Companies ,— and on the home Revenue.— Efforts
cf the Company to extend the Circuit of their 'Trade with
China.— Rcfult of the whole of thefe FaEls and Events.
2. India TrAde.— Bullion fent to India fince the Acquifttion
of the Territories.— Exports— Imports— Connexion of the In-
dia Trad: with the Revenues.— -Progrcjfive amount of the
Revenues. — Objecis to which the Surplus was originally to be
applied.— Sources of the E)ebi of the Company, as contraBed
upon the whole of the Revenue and Trade.— Progreffive Amount
of the Debts.— Refult. Hueflion, Whether the Trade has a
Claim on the Revenues.— Colle&ive J'^iew cf the Advantages
(f the Eafl-India Trade to the Proprietors and to the Public,—

6 in

'\\

»i

''A

AND TRADE IN THE EAST INDIES. 271

in 'the Sums paid on the Renewal of their exclujlve Charter f—-
m the Amounts of home Duties afid CuJIoms from the Eaji-
India 'Trade,— in the Dividends received by the Proprietors.—
Amount of the Charges cf Freight and Merchandize.-— Ge-
neral Inference eflabliOoing the Principle upon which the Brittjh
Tirade to the Eaji-Indies mufi proceed. IV. The Government
for Britifli India miift accord with the Charadters of
the Natives, and with fubfifting TxQz.tiei.—IlluJiratioHs
from the Hijiory of Hindoof an.— Ancient Government of India
monarchical,— became more abfolute on the EJiablifjment of
ihe Mogul Empire,-— and Jim more fo, when the Mogul Go-
vernment took a regular Form.— T" he Spirit of the Mogul Go-
vernment fuitcd to the Situation oj the dependent Princes, —
continued after the Subverfion of the Empire ,— became fill
more abfolute iindcr the Ufurpers,— Inference from this Review
of Government in Hindoof an.-— T'he internal Adminif ration
of the Empire coincident with the Chara&er of the Go-
vernment ,-— was more rigid m the Provinces than at the Seat
of Empire.— T^he judicial Power accorded voith the Spirit of
the Government ,— and the fnancial Syfem with both. 'The-.
Eaf -India Company acquired their 'Territories, as the Officers
or Allies of thcfe abfolute Princes.-— Britain cannot, in Con-
fifency vjith fubfijiing Treaties, recede from this T^'wwrr, — but
muf as the Bcfis of natural Faith and Expediency continue it.
— Difficulty of engrafting difant Provinces upon a free Confi'
iution.—Refult.

OP THE BR.ITISH GOVERNMENT

orfhTB^hifli -Having, in the introduaioa to thefe fketches, broiighC
pofleiiions under review the leading events in the hiftory of Hindooftan^
t"he Emi. ^ connexion with the general progrefs of the Eaft- India
inditi. Company, both before and fince the period when the

commerce was conneded with the Indian revenues ; and
having detailed the feries of plans, which have been offered
to the Legiflature, or been fuggefted by thofe, whofa local
knowledge abroad, or whofe opportunities at home, quali-
fied them to give opinions upon the f}'ftem by \\ hich Indiaa
affairs are regulated, we may now proceed to fubmit to con-
fideration the commercial and political principles, which muft
enter into any plan, that may be devifcd, for the future ad-
miniflration of them..

The importance of the government and revenues of the
Britifh pofleflions^ in Afia, will readily be admited, if we
conCder either the extent of the Britifli provinces, the
number of the inhabitants, or die aftual amount of the reve-
nues. The importance of tlie trade will become obvious, if
we advert to the tonnage which it employs, to its forming
one of the moft confiderable branches of our foreign naviga-
tion, to the quantity of Britifh manufactures ex-ported to the
Eaft, to the relation between the revenues of India and. the
trade, to the materials which the imports afford to our ma-
^ nufa(5tur€9,.

AND TRADE IN THE EAST INDIES. 273

nufa6lures, or to the duties and cuftoms which the Public chap. hi.
derive from the imports. Hitherto the Legiflatiire have been
making experiments to prepare the nation for a plan of
government, of jurifdidion, and of commerce fuited to
the diverfified charafters of the Britifh fubjeds in India, '

and to thofe of our dependents and aUies; and yet, on the
renewal of the Company's privileges, or upon any plan
which the Legiflature may devife for the government of the
Afiatic provinces of Britain, as there muft occur opportu-
nities for further regulation and improvement, it will be
difficult to confolidate the whole into one great fyftem.
Hitherto, in the fame manner, we have been making
experiments on the mode of rendering, through the Com-
pany, the trade to the Eaft-Indies more extenfively ufeful
to the nation ; at firft, obliging them to fend out Britilh
produce proportioned to a certain amount of their capital
ftock, then enforcing this meafure by regulations, as a na-
tional one; then trying to introduce a more profitable ex-
change with the Chinefe, upon the bafis of a commercial
treaty ; and laftly, fpeculating upon the queflion, whe-
ther the quantity of Britifh exports would become greater if
the trade were opened, or if it be not already, as large as the
demand will admit. After all the information obtained
upon this fubje£l, ftill it will be an important confideration
how far the nature of the cafe will allow deviations
from the eftabliflied pra6tice, or the admiffion of a new
plan.

N « Upon

274 OF THE BRITISH GOVERNMENT

CHAP. Ill, Upon thefe national fubje>fls the hiftory of the countries

Events and whicli wc goycrn, or to which the limits of the Company's

upon wWch^' trade extend, and the nature of the trade itfelf viewed in

a plan for || jj-g ma2:nitude, muft fugceft circumftanccs calculated to

thcic national t> ' oo

fubjeas muft fix tlic attention of thofe who are intitled to iud2;e of

left. . °

what is praflicablc, and to pronounce on what is merely
fpeculative. The progreHivc grants and charters given to
the Company, when recollc6ted, will fuggefl the politir
cal principle upon A\hich either their claims or their
rights, as a body corporate, can be admitted or rcjedled.
The magnitude of the Eaft-India trade, and the immenfe
property veiled in it, with the neceffity of preferving and
invigorating the whole, will fuggeft the commercial prin-
ciple upon which opinions may probably turn. We are
not to confider the Eaft-India trade upon the narrow idea
of a monopoly, calculated to enrich a few Dire6lors and
Proprietors ; but upon the facls, that the commerce is con-
ducted upon a large capital, that the fharers in India ftock
are as numerous as they would be in an open trade; that
the Proprietors are entitled to give their opinions upon
every mcafure, which regards the Company's intercft ;
that for a fum of a leflcr or a greater magnitude, not
only Britifli fubjecls, but foreigners, can veft their pro-
perty in this trade; and thus, that it draws, as to a centre,
large portions of the wealth of our own, and of other na-
tions ; that it extends and nouriihes our navigation;
that it affords a profitable dividend to the holders of
ftock, whether othcrwife engaged in trade, or not, that
« it

AND TRADE IN THE EAST INDIES. 275

it gives to the artift: and to the manufa6lurcr oppor- CiiAi'. iii.
tnnities to difpofe of the produce of their fl-iill and of their
induflry, and to the merchant a field forhisenterprize; that
thoufands receive a livelihood from the Company, either
from employment in England or in their fliipping, who>
upon the plan of an open trade would be left in afituation,
the diftrcfles incident to which we may conjecture, but could
not relieve; that, in one word, the Eaft-India Company
may be confidered as the Britifli nation trading to Afia,
bringing home the furplus revenues of provinces in a man-
ner which enfures the duties and cufloms to the Public,
and that Britain has obtained a weight in the trade
which other European nations can neither balance nor bear
down.

The events which firft led the Legiflature to inilitute en-
quiries into the aftual ftate of Indian affairs, and the gradual
manner in which thefe enquiries terminated in ellablifliing
the controul of Government over the political and finan-
cial concerns of the Company, the improvements ^vhich
the experience of the executive power has introduced, as
circumflanccs required, the knowledge which has been ob-
tained of the manner in which this luperintendence can be -
exercifed with fafety to the conllitution, will unite in fug-
gefling the political principle npon which the domeftic
adminiftration of Indian affairs muft necclTarily reft,

N n 2 It

276

OF THE BRITISH GOVERNMENT

CHAP. III. It may therefore tend to facilitate the formation of a plaa
Commercial for the futiue admlniftration of Indian affairs, if commer-
^"•'^ •''fe's'to' ^^^^ '^"^^ political principles, iiluftrated by the events, out
berecoiiedied of which they have arifen, and by the documents and
plan for lu- accounts which form the authenticated exidence of their
an a uiu. jy^^j^,^ ^nd propriety, fhould be brought forward to the

notice and recollection of thofe, who are to decide on this

national fubjedt.

I.TheLcgif-
lature may
difpofe of the
Britidi pof-
feffions in
Hindooftan,
and trade to
the Eall In-
dies.

Illuftration,
—from the
progreffive
grants and
charters
given by the
State to the
Eaft-India
Company.

First. T'he territorial pojfejjions of Great Britain in Hindooftan
and its dependencies, and the rig/jt of difpofing of the trade to
India, the Eajlern IJlands, and to China, •will belong to the Public
in March 1794, and the State may then re- grant them, by a
new charter, to the prefent Eajl-India Company, (-which ivill
remain a body corporate, intitled to trade to the Eaji-Indies, on a
joint flock,) or it may retain the territories and revenues, to be at
the difpofal of the Public, and lay open the trade to all the fubjs£is
of this realm*

Queen Elizabeth, by charter, dated 31 ft December 1600
(the 43d of her reign), eredled the London Eaft-India
Company into a body corporate and politic, to have fuc-
ceflion, entitled to purchafe lands, and to be under the
management of a Governor, Deputy-governor, and twenty-
four perfons, to be called Committees, who, jointly, were to
have the power of direfting voyages, to have the provifion of
fliipping and merchandize, and, in fine, the adminiftration of
whatever might belong to the Proprietors. Thus defined,
the Company were empowered " to trade into the countries

4 of

AND TRADE IN THE EAST INDIES. 277

of Afia, Africa, and America, or into any of them, beyond CHAP, ill,
the Cape of Bona Elperanza, to the Streights of Magellan,
where any trade or traffic of merchandize might be ufed,
in fuch manner as fliould, from time to time, be agreed on
at any public aflembly, or Court of the Company. This
firft charter contains alio the proviio, " That in cafe thefe
pri\'ileges were hereafter to appear not to be profitable to the
Crown and Realm," then, upon two years notice to the
Company, the charter was to ceafe and determine; but if
profitable, then the Queen promifes, at the end of fifteen
years, upon the Company's fuit, to grant them a new
charter for fifteen years longer.

On the 21ft of May 1609, James I. renewed the deed of
corporation with fucceffion and perpetuity, confirmed the
Company's conftitution, and referved the power in the
Crown, to relume its rights on three years notice.

On the 3d of April 1661, Charles IL renewed their
charter to the Company, upon the fame principles, with the
additional powers of exercifing civil and criminal jurifdidion
in their fadlories, &c. according to the laws of England ; of
exporting warlike ftores, of making war and peace, of for-
tifying their fettleraents, and of ieizing interlopers. The
Prefidents and Councils, in their fadories, were farther
allowed to puniih offences, according to the laws
of England. In 1669, the fame fovereign granted
them the ilia nd of Bombay, and, on the i6th of December

278 ■ OF THE BRITISH GOVERNMENT

CHAP. iri.^ 1674, the i Hand of St. Helena, to be held in as ample a
manner as it came to the Crown. Bombay was to be held
mfoccage, at ^. 10 per annum rent, but without any power to
alienate any part of the ifland, except to the fubjefts of the
Crown of England. The Company alfo were allowed to efla-
blifli Courts of Juflice in thefc iflands, cxercife martial law,
and further, the powers granted for the ifland of Bombay,
were made to extend to the other fettlcments of the Company.
Thefc privileges were again confirmed by a new charter, dated
6th Oclober 1677, with the additional right of coining money
in India. By another charter, in 1683, the Company were
again inveftcd with the government of their forts, the power
of making peace and war, of muftering forces, of cxcrcifmg
martial law, and of erefting Courts of Judicature, referr-
ing to the King his fovereignty. James II. afterwards con-
firmed thefe privileges by anew charter of the 12th April
1686, ratifying this power of enforcing martial law, of
appointing Admirals and Captains, of making war on
Indian Princes, &c.

Upon the Company's non-payment of the duty of 5 per
cent, which had been impofed on their flock by the 4th
and 5th of William and Mary, thefe charters were for-
feited, but rcfl:ored by a new one, in which the Com-
pany were bound by two afts of regulation, to conform
to fuch orders as the King, with the advice of his Privy
Council, might exprefs and direft.*

* The deeds of regulation are dated nth November 1693, and 28th September 1694,
snd were carried into effedt.

The

AND TRADE IN THE EAST INDIES. a^p

The opinions of the Public, at this junftnre, were much CHAP. ill.
divided refpeding monopolies, and the value of the Indian
trade ; as well as refpefting the condu6l and management
of the London Company in particular. In confequence of
this ftate of public opinion. Parliament liftened to the offer
made, by a new affociation, of a loan of jT. 2,000,000, at
8 per cent. ere6ted the EngUfi TLaJl-Ind'ui Company^ and tranf-
ferred to them privileges which, it was foon found, were
incompatible Avith thofe that the Bill of Rights had con-
firmed to the old Company. Hence arofe the neceflity of
uniting the two Companies, and of forming that one which
at prelent exifts.

This event took place in the year 1702; after paffing
through the forms of a refignation to the Crown. The whole
privileges of the London Company, from royal grants and
licences, and the whole rights of the EngliJJj Company, from
the charter 1698, were confirmed to the United Company of
Merchants trading to the TLaJl-Indies,.

By an a£l-, the loth of Que^n Anne, the claufe for de-
termining the exclufive privilege, after three years notice,
from the 25th of March 1726, was repealed. The debt
due, by the Public to the Company, was encreafed to
^.3,200,000; the annuity on which was fixed at ^. 160,000;
and their term prolonged to 1733.

By the 3d of Geo. II. upon the Company's giving
jT. 2Qo,ooo to the Public, and agreeing that tlicir annuity

fliould .

tSo

OF THE BRITISH GOVERNMENT

CHAP. irr. flif^ulJ be reduced to £. 128,000, their term was prolonged to
' one year's notice, after the 25th of March 1736.

Matters remained nearly in this fituation till 1 744; when,
by the 17th of Geo. II. upon the Company's agreeing to
advance ^. i ,000,000 further to the Public, at 3 per cent,
(which raiied the debt due by Government to them to
;^. 4,200,000) their term was extended to 1780, and by
23 Geo. II. the intertft on the whole debt to the Cc.mpany,
was fixed at 3 per cent, making the annuity ^.£26,000.

In 1767, the Company agreed to pay ,{^.400,000 an-
nually, to the Public, for two years, as a ipecies of quit-
rent of the tcrr.torial acquifitions, which their forces, in
conjun6tion with thofe of the King, had, during the war,
acquired for the nation ; and, in return, had their territories
granted to them for two years.

By the 9th of Geo. III. the annual payment of j(". 400,000
was continued to the Public, for five years, after 1769, by
half yearly payments of ^T. 200,000 each; and the territorial
acquifitions confirmed to the Company till 1774.

By the 13th Geo, III. the Public advanced jT. 1,400,000,
to be applied for the relief of the Eall-India Company, and
poftponcd the pa-ment of their quit- rents, .&c. eftablifhcd the
Supreme Court of Judicature, and the iuprcmacy of the go-
vernment of Bengal. The 19th of Geo. III. continued the ter-
ritorial acquifitions to thcCompany, tiil the 5th of April 1 780.

AND TRADE IN THE EAST INDIES. 281

CHAP. 111.

By the 20th of Geo. III. the loan of 1773 having been
repaid by the Company to the Pubhc, and the bond debt
reduced to ;^. 1,500,000, the territorial acquifitions were
continued to them till 5th April 1781.

By the 21 ft Geo. III. the exclufive privilege and territorial
pofTefTions were confirmed to the Company, on payment of
j^. 400,000 to the Public, till March 1791; when, upon
three years notice, to be given by Parliament, their exclufive
priviclge of trade was to ceaie and to determine. This ad,
however, in the terms of all the preceding grants and a(Sts,
Specified, that the Company, even after the expiration of
their term, were to continue a body politic and corporate,
entitled to trade to the Eaft-Indies on their joint ftock.

Upon thefe a£ls the Eaft-India Company have continued,
not only their chara6lers of merchants and delegated fo-
vercigns, but their property is now of two perfetSlly dif-
tinft kinds, viz. the fums employed in trade, and the amount
of the revenues annually tierived from the territorial polTcf-
fions. The fir ft may be confidcred as abfolute property
belonging to them as merchants ; tlic fecond, as property
to \\'hich their charter, from the Public, gave them a legal
claim till their term Ihould expire.

Taking then the original charter of the Company from Rcfuit.
Queen Elizabeth, as the bafis of all the fubfequent grants
and charters, doA\'n to the union of the London and EfigliJJj
Companies, into one view, and then confidering all the

O o charters

282 OF THE BRITISH GOVERNMENT

CHAP. III. charters that have proceeded upon a£ts of parliament, before
and fince the Company acquired the territories into ano-
ther, it is evident ;. in the jirji plirce, that the whole rights
of the Eaft-India Company have been conveyed to them by
the flatc, for the purpofes of promoting and encouraging
trade, within certain defined limits : In the next place, that
the privileges of ading as delegated Sovereigns have been
given to them^ in confequcnce of a fucceflion of political
and commercial events ; and, therefore, by law, ceafe and
determine, at the expiration of their exclufive charter.
Judging, therefore, of the right of the ftate to difpofe of the
Britiili trade and territories in the Eaft-Indics, from all the
circumftanccs which have attended the progrefs of the Eaft-
India Company, and from the motives which have actuated
the Legiflaturc, the inference is obvious ; that the ftate has
the right both to difpofe of the trade within the prefent
Company's limits, and of the territorial pofTeflions which
have accrued to it, in the manner tliat it fliall deem the
moft beneficial for the Britiili nation, the Company ftill
retaining a right to trade on their joint ftock.

Oppofite ai- Though the right of the ftate has been admitted, upon
which^have ^^^ opinious of the firft lawyers of Great Britain, it has
been main- been made a queftion, and will naturally occur in the mo-
ihis icfuit. ment of difcufllng Indian affairs, how far the Public, in
equity, ought to avail themfelves of that right. The
rcafonlngs upon this fubje6t may be divided into thofe of the
political ceconomifts, and thofe of the lawyers. The former
have alkcd, on the one hand,— Is it proper to have a Com-
pany

AND TRADE IN THE EAST INDIES. 28

pany of Merchants, acting as Sovereigns, when they them- CHAP. iii.
felves arc only fubje6ts? Is it prudent to have a lefler
wheel turning on a different centre from the greater wheels
of government ? Has not the ftate, by law, a right to what
the fubjeds acquire by arms, or by treaties ? And, ought it
not to aflume this right, and declare to its Afiatic fubjeds,
the immediate relation fubfifting between them and the
Britifh fovereignty ? They have alked, on the other hand, —
Have not the territorial pofTefiions been controuled by the
executive government, refponfible to Parliament ? Have not
the territories of the Company been acceflbries to the char-
tered rights of the Proprietors, acquired by the fkill, the
induitry, the bravery, and the good fortune of their fer-
vants abroad ? Would it be proper to deprive them of the
territories, or would it be confiftent with a liberal interpre-
tation of the charters under Avhich they acquired them ?
If, even upon the ground of public expediency, the Com-
pany were to be deprived of their exclufive privilege of trade,
or of the revenues which have miniftered to its fupport and
profperity ; would they not be entitled to a compenfation
equal to the fums which have been rilked in carrying on
the one, or in acquiring the other? Would they not be
entitled to the prefent value of both, and to the probable
profits on the amount which they have expended ? Ought
not, in fine, the Company to have a reward for the exer-
tions and induftry, which have placed our Indian empire
in its prefent ftate of profperity ?

O o 2 The

£84 OF THE BRITISH GOVERNMENT .

CHAP. Ill, T' jiE opinions of the lawyers on this fubjcdl have
been different with refpeft to the general refult. On the
one hand, they fay, that whatever fubjeds acquire by trea-
ties, or by conqucfts, they acquire for the flate ; and
they fupport this conclufion, with the rcfpcclabie opinions
of Chancellor York and Earl Camden, and the reiblution
of the Houfe of Commons in 1773. On the other hand,
they aflcrt, that though this principle of law be admit-
ted, yet it docs not apply to the novel cafe of the Eaft-
India Company. The purchafes which it has made fmce its
firft inftitution, and the phirmaunds and funnuds, by which
thcfe purchafes or acquifitions have been confirmed, have
all aril'en out of the fpirit of the fuccefTive char-
ters, which made the Company a body corporate, A\ith fuc-
cefilon and perpetuity, and gave them a right, not only to
make thefe purchafes, but to difpofe of them to the fubjedls
of this realm. The conquefts too have been made under
public authority ; and, as a private Ihip of war has a right
to her prize, fo the Eafl-India Company, being authorized
to arm, make reprifals, conquefts from, and treaties with
Indian powers, has a virtual right to its acquifitions. It
is true, that in 1794, in confequcnce of the notice given
by Parliament, the exclufive right of trade may be taken
from the Company : but ftill it is admitted, that it wilj
retain a right to be a body corporate, and to difpofe of
its legal property. It will therefore be extremely difficult
to give to it a compenfation, upon a liberal view of all
the circumftances.

ANDTRADEINTHEEASTINDIES. 285

It remains then with Parliament to judge, whether it chap, iir.
will be moft for the advantage of the Public, to con-
tinue the trade with the prefent Eaft-India Company,
in connexion with the revenues of our Afiatic poflef-
fions ; or whether it will be expedient to affume the
revenues and pofTeiTions, and to place them under the
immediate direction of the executive power, continuing
the exclufive privilege of trade with the Company, or
laying it open to all the fubjeds of this realm.

Second. That the prefent TLajl-lndia Company, from the n. TheEaft-

tenor of all its charters, having a right to remain a body ps- pany, as a

litic and corporate, and to trade to the Eaji-Indies on its joint ^^^ politic,,

ftock, miift either have its charter renewed for a limited time, have its char-

or if its exclufve privilege fiall ceaje and determine, it mufi or he enabled

have the liberty of difpofing of its property, be enabled, under it" propeny"

the circumfances in which it may be filiated, at the expira- ^'k''"'°'ii"*

iion of its charter, to difcharge its jujl debts, and to realize the- ^''^'^ t^e va-

, ,- . . n 1 '^'^ "f its

value oj its proprietary Jtock. itock.

The review which we have taken (in the preceding iiiurti-ation,
article) of the charters which originally conftituted, and ^Im'-'o^^he
have, through a long feries of years, fupported the Eaft- "''S''.'-'' '^°"-

"■^ *-" J ' >. \. liitLition of

India Company, as well as the fads and events which have theCompany.
marked their progrefs, leave no doubt of their legal exifLciKc,,
even fuppofing their exclufive privilege to be taken from
them. This being admitted, the queftions which will
naturally come to be anfwered, before an affent can be given
to the principle now announced, will be, in the firit place,
3 What

2S6 OF THE BRITISH GOVERNMENT

CHAP. III. What compenfation will be due to the Company ? In the

next, What inconveniences will it be in the power of

tlie Company, trading upon a joint (lock, to bring upon

* other merchants who may engage in the commerce to

the Eall-Indies ?

— fmm the There Can be no doubt, that, as a legal body, the Com-

thci'r'qukk P^uy havc a right to difpofe both of their quick and dead

ftocklb^tad -fi^^^^ ^^ home ; and there can be as little doubt, that they

aiiil at home, will have a title to difpofe of their quick Jlock abroad. It

win however, be a matter of difcuflion, how far they

are entitled to difpofe of their forts, fa6tories, or feats of

trade, or, in general, what is termed their dead Jlock abroad ;

or what compenfation they might expe6t for this flock, if

it fliould be aflumcd by the Public.

It appears, that the Company obtained the iflands of
Bombay and St. Helena, infoccage, from the Crown, the latter
for a quit-rent of jT. lo per annum ; and that thefc iflands were
to be held by the fame tenure as the manor of Eafl Greenwich.
And that if the Public did not grant them the {ame de-
fined legal rights to the other feats of their trade, or to the
diflrifts round their factories, which they had acquired by pur-
chafe, and for quit-rents to the country powers, anterior to
their conquefts, that it was becaufe fuch grants from the
Crown of England were not necefTary to them as a body poli-
tic, or bccaufe thefe grants could not be given by a power
which had not a right to difpofe of that property, as it had

ANDTRADEINTHEEASTINDIES. 2S7

of Bombay and of St. Helena, of Calcutta and of Fort 2il!l!5
St. George ; but had only the right to authorize the Com-
pany to make purchafes, and to acquire or to difpofe of
fuch a property, &c.

Though no queflion, rcfpeding the territorial acquifi-
tions, to be derived from conquefts or from treaties (as the
Company reprefented the nation), could then be inftituted,
a new difficulty certainly prefented itfclf when thatfpecie of
property had been obtained. It may therefore be expeded
that the Company fhall afcertain what part of their dead
ftock tl"i€y got by purchafe, or for a quit-rent from the
Country powers ; and what property they have acquired
by conqueft, or authorized treaties. That they have
a right to the firft of thefe kinds of property, or to the
original purchafe money given for it, or to its prefent value,
may be admitted. That they have no right to their con-
quefts, or to the cefiions made to them by the country
powers, the law has eftablifhed. It is, therefore, for the
Legiflature to pronounce, whether their holding from
country powers, gives them claims of any kind.

Supposing then that the Public have formed a decided —from the
opinion on this fubje6t, and that it has given to the prefent they hae to-
Eaft-India Company that compenfation for their foreign dead merch.lntr'
Jlock, which, in juftice, is due to them, and which the £aft,if^^''^*
equity and liberality of the EnglilTi nation will chearfully
pay, ftill a difficulty will arife with refpe6l to the interference
in trade, to which the Company will be entitled^ either with

any

aS8 OF THE BRITISH GOVERNMENT

CHAP. Ill

'^- any new body of merchants, or with private traders to the
Eaft-Indies. With the former, the interference would brine:
on that competition, Avhich, from the nature, both of the
China and India trade, could not but terminate in the
bankruptcy of the one or the other. With particular adven-
tures, the interference would not only have this tendency
more quickly, but, in the China trade (from the political
maxims of the Chinefe), might expofe all the fubje6ts of
the King, trading to that country, to perlbnal danger, and
their property to confifcation, and might ultimately throw
the trade into the hands of rival European companies.

It will therefore be for the wifdom of Parliament to
devife, in what manner the Company are to be prevented
from interferences, either with a new mercantile aflbciatiou
(if it fhould be conflituted) or a\ ith individual traders, if the
commerce fhould be thrown open.

—from their SUPPOSING then, that both of thefe difhculties could be
°odii-char"ge Tcmoved, viz. the fatisfy-ing of the Company for their fo-
thfir debts, reign dead flock, acquired by purchalb and treaties; and
the preventing their interference, in their corporate capacity
and with their joint ftock, with any new mercantile afToci-
ation, or with the free traders, it will next come to be con-
fidcred, in what manner are the debts of the Company to
be difcharged ? and how are the Proprietors to recover the
value of their flock ?

According

AND TRADE IN THE EAST INDIES. 2^9

According to the accounts made up at home of the debts chap, iir,
of the Company, for the ift of March 1793, they amount
^including the transfer debt) to the fum of ^.15,601,069.
If we exclude from the amount of this debt, firft, a fum
equal to the debt due by Government to the Company,
(jC- 4, 200,000) leaving it to be fet off againft the annuity due,
or that may be fold by the Company ; next, if we leave
out the capital due to the Proprietors of Eaft-India ftock,
amounting t0;(".5,ooo,ooo, and fuch floating debts as occur in
the common courfe of their bufinefs, amountingtOjT.z, 454,579
{becaufe an equivalent for both thefe will be found in the
aflets of the Company at home, afloat, and abroad, amount-
ing to ^.12,913,854, exclufive of the debts owing to the
Company in India), ftill the debt at home is ^^.3, 946, 490.
It is impoflible, at prefent, precifely to afcertain what the
amount of the debts in India, bearing intereft, was at
the conclufion of the late, war. According to the lateft
accounts received, the debts in India, bearing intereft,
amounted, on the 31ft January 1792, to ;(C'^'933'943»
and the floating debts to jT.Z, 150,607, being in the total
<C'9»o8j.,55o.

It is difficult to fay, what may have been the total expenfcs
of the late war, in which Great Britain has been engaged
jn India. But, whether, on adjufling the accounts abroad,
it fhall be foimd, that the Company's affairs are better or
worfe than the above ftatement, it aftedts not the principle,
that they muft be enabled todifcharge their debts.

Pp It

290 OF THE BRITISH GOVERNMENT

CHAP. Ill If will likewife be admitted, that the Proprietors of India

And from ftock have an equitable claim to the fair value of that ftock;

Ihc'vakror and, though it would be difficult to fay, at what fum the

*ur-ftocr' P"^^^^ ought to fix this value, yet it certainly ought to be

at a fum that would yield (from legal intereft) an equivalent to

the 8 per cent, on the jT.ioo, ftock, which the Proprietors

now actually draw. The Proprietors, as has already been

ftated, have a right to their original fubfcriptions ; and, it

A\ ill alfo be admitted, that they entertain a reafonable ex-

peftation either of being allowed to continue their trade,

or to receive fome compcnfation, if deprived of the profits

which they at prefent draw from it.

From, then, the political character of the Company, as a
body corporate, and from the right which it pofleffes (even
fuppofing its exclufive privilege to ceafe and determine),
to continue to trade to the Eaft-Indies, on its joint ftock,
and confequently to interfere with any new body of
Merchants to which the Public might transfer the
exclufive privilege, or with individual merchants, on the
fuppofition of an open trade ; from the condition in which
the Public muft leave the prefent Company to difcharge its
juft debts, and from the reafonable hope of the Proprietors to
recover the equitable value of their proprietary ftock ; it will
remain for the wifdom of Parliament to pronounce, whether
the prefent fyftem of Afiatic commerce ought to be continued,,
or whether it is to dcvife a new plan, that ftiall be adapted
not only to the preceding purpofes, but calculated to give
frefh vigor to this important branch of our trade and navi-

3 gatioa

AND TRADE IN THE EAST INDIES. 291

gation, and to render that trade, inits conne6tion with our chap. iir.
Afiatic provinces, a produdlive rcfource of the Britifli
empire.

Third. The Jyjiem which is Jilted for the prefervation of 3- Afyf-

the Britijh JLaft-India tra,dc, mufl arife out of the nature of that Eail-india

trade, and can only be e/labll/hed on the events which have ""v^ ™"*<:

' y u J arile out or

brouicht the trade to its prefent extent and ma^tiitude. If anv ^'^^ nature of

,/7/j7 7 1 ■ ■ ■ ■ ' ;■ rr r tl'^'t fade,

plan fjould be adopted, originating m fpeculative fchemes of which might

commerce, the permanency of our prefent Ajiatic commerce might be stitab by

endansicred, and the balance of profit, arifing: from it, with the '^"-^' ^'"f'lipt

" . .... to turn It into

benefits which the refources of Great Britain receive, might pafs •' new ch'in-
into the hands of rival European Companies.

t ration

the

In order to illuftrate this principle, we have firfl, iHuftr

1 ir ri-nn from V..^

llightly, to advert to the general lources or the Eait- fourcesoftha
India trade ; next, to refer to the fources and extent "'^'^'^~'
of the China trade ; and, lafly, to the fources of the
India trade, both before we had territories, with which to
conne(5l it, and fince that event has made the trade, the
means by which the revenues from thefe territories can
be reahzed in Britain. A few fa6ls, without any rea-
fonings on them, will illuftrate the principle, which has
been announced, or eftabliili it as an inference from ex-
perience.

In a preceding part of thefe fketches, wc reforted to the — wluch or;,

principle in commercial oeconomy, that trade arifes not out c^jcmai'"'^^*

of plans or fyftems, prcvioully laid down, for creating or im- events;

P p 2 proving

192

OF THE BRITISH GOVERNMENT

CHAP. III. proving it. The Britifh trade to the Eaft-Indies, will
iJluftrate it. The accidental difcovery of the paflage
by the Cape of Good Hope, fliut up the ancient route
of the trade between the Eaft and Europe; this event hap-
pened to coincide, in time, v»'ith the general fpirit of ad-
venture, which prevailed on the decline of the feudal fyftem.
England, in common with the other nations of Europe,
felt and cheriflied this difpofition, and the wifdom of the
politic Elizabeth perceived, that the natural refource of
her kincfdom cciafifted in manufa£tures and commerce;

—that were The Portuguefe had already difcovercd the navigation
by political to the Eaft-Indies by doubling the promontory of Africa,
meaiures, ^^^ j^^j created to tliemfclves an empire and a trade in
thofe parts of Afia which hitherto had not been vifited
by the Europeans. The Dutch, now flruggling for inde-
pendence, acquired a (hare in the commerce, as well as in
the eaftern dominions of the Portuguefe. Great Britain,
at this jun6ture, was but commencing her commercial
career ; the ufeful arts, in England , were as yet few; the
fuperior value of our produce was not yet known ; and
the credit of our merchants but beginning to gain ground,
and unequal to great commercial enterprizes.

— m imitati- ^T ^^Yi therefore, be eafily inferred, that when England-
onof thole of entered upon the Eaft-India trade, it was an adventure, in

rortugal arid -t

of Holland, imitation of the Dutch; like them, the London Company
coUedcd bullion in Europe, carried out fmall quantities of

■woollens

AND TRADE IN THE EAST INDIES. 293

woollens and other manufa6lnred produ6lions, and thought CHAP. Til.
of nothing beyond the profits which the Tales of their
imports from the Eaft would produce.

By degrees, however, the EnglilTi trade to the Eaft- tions of th^"
Indies began to afTume diftindl forms : fome of the Com- ^*^-i"^"*,

o Company 8

pany's iTiips were fent to the Eaftern Iflands ; others of them ^'P'-
to the Peninfula of India. As the Portuguefc and Dutch
had fet the example of fixing feats of trade, with guards
to them, in India and in the Iflands, and houfes of trade
(being all that was allowed to them) in China; the
London Company eftablilhed faftories, adding to the num-
ber, as their commerce and their importance in the Eaft
encreafed. Some of the Company's fliips went to India,
and returned with cargoes to Britain : others of them went
from India to the Spice Iflands and to China, with the obje6l
of compleating their cargoes, and, after a circuitous voyage,
returned to Europe, to be rewarded by the profits from the
fale of them.

It appears, that when the Eaft-India Company traded Progredive
upon fliares, not upon a joint ftock, their trade wasfcarcely cmnuwce,"^
able to fupport itfelf ; for they divided very fmall profits, fi|{on^o7^e''
compared with thofe which the Dutch drew at the fame ntories.
period. No fooner, however, had they imitated that na-
tion, by trading on a joint ftock, than their commercial
importance began to increafe, and the demands for Britifli

^ expoFtSy

294 ^^ THE BRITISH GOVERNMENT

CHAP. III. exports, confifting chiefly of woollens, lead, tin, copper, &c.
to become greater.

Several circumftances will enable us to trace the lines
of their pro2;refs, viz. the gradual manner in which they
were permitted to export bullion ; their exports of goods
and ftores ; the bills drawn on the Court of Directors ;
and the amount of their fales in Europe, down to the pe-
riod when they became poffeflcd of the Duannec. In the
Company's firfl charter they were allowed to fend yearly,
;{".3o.ooo in foreign coin or bullion, 'provided ;^.6,ooo flioukl
firfl; be coined in the Queen's mint. This fum varied till
1616, when the advantages of trading upon a joint flock were
fully perceived, and this fyflem adopted by the Company.
In the following year they were permitted to carry out
foreign coin to the amount of j^. 100,003, and afterwards,
by fimilar grants allowed, in cafe they could not make up
the requifite quantity of filver, they were allowed to ex-
port j(". 30,000 in foreign gold. For a confiderablc time
after this period, the quantity of bullion exported was
left indefinite. Apprehenfions, however, began to be felt
by the Public, refpe6ling the pernicious confequences of
draining the coin in circulation from the kingdom. Hence
the reafon why the Company were obliged to import,
within fix months after the voyage, at leaft as much filver
as they had carried out in that voyage.

By the union of the London and Englifli Companies, the
cap'tal and the trade were greatly encreafed. The trade, how-
ever, continued to be carried on chiefly by the exportation of

bullion,

AND TRADE IN THE EAST INDIES.

'9$

bullion, of which the quantity fent, on an average often years, chap. hi.
1700 to 1 710, was aboutjC.30o,ooD per annum. As the trade
encreafed, the quantity of bullion exported encreafed, and, on
an average of ten years, 1721 to 1731, the amount was about
j^.5 50,000 per annum. In order to place the progreffive ftate
of the trade in an obvious pokit of view, we have only to
fubjoin a flatement of the funis paid for bullion exported,
for goods and ftores exported, and for bills drawn on the
Court of Dire6tors, and the amount of fales from 1732,
(when the Company's annual accounts became regular) to
1767, at which period, befides their conquefls, they were
in full polTeflion of the Duannee.

Paid for Goods and Bills drawn
Bullion ftores ex- ontheCourt Sale of
exported, ported. of Directors. Goods.

From 1731 to 1741, average of loyears, /■.464,574 152,609 167,410 1,700,67;

1741 to 1747, 6 years, 567,238 189,411 230,914 1,907,105

1747 to 1757, 10 years, 767,057 267,730 164,482 2,143,459

1757 to 1767, 10 years, 121,287 428,707 432,891 2,315,573

The largeft quantity of bullion, exported in one year,
was in 1753, when the amount of ^.667,923 was fent to
India, and £-2y6,233 to China, making ^.944,256. The
largeft average is from 1747 to 1757, being ^^.767, 057, of
which ^(".564, 423 was fent to India, and ^T. 202,634 to China.
The Company's conquefts in India, at this junfture, rendered
it unnecefTary to continue the export of bullion thither, and
accordingly of the average amount ;^. 121,287 from 1757
to 1767, jr.97,074 was fent to China, and the remainder ta
Bencoolen, St. Helena, &c^

Tae,

zg6 OF THE BRITISH GOVERNMENT

CHAP. III. The fources of the trade to the Eaft-Indies, not-

•^ V — ' ...

Change pro- withftanding the revolutions on the peniniula of India^
by the war Continued to be nearly the fame, till the ambitious
»' '75^' fchemcs of France, on the Coromandel Coalt, farced the
Eaft-India Company to take up arms. With the afiiftance of
His Majefly's fleets and armies, they became (under their
charter) delegated fovereigns of rich provinces. This
event, of courfe, gave a new charatSfer to the trade. The
obje6t in the India branch of it was now, not only to
continue the commerce, but to bring the furplus revenues of
the conquered or acquired provinces to Biitain. The ancient
objeft in the China branch of it remained, as well a> the com-
petition in that market with the other European nations. It
was now, however, expedlcd that the fuperiority of the
Englilh would be fully eflabliihed, in conlcquence of the
command of Indian produce and bullion, to be exported to
China. It was expetled alfo, that the exports of Bri-
tifh produce would be confiderably augmented, both by
diffuhng them over the provinces, which had fallen to us,
and among the nations of India, to which our political in-
fluence extended. How far thefe expedations were fulfilled,
will appear from the account of the China trade, and from
comparing the following ftatement with that already given. ,

Paid f jr

Gooils and

Bills drawn

Bullion

florcs ex-

on the Court Sale of

exported.

ported.

of Diredors. Goods.

'767 to

'777.

average of 10 years, /". 110,042

489,081

458,768 3.313, 5£6

1777 to

'784,

7 ycr.rs, 5,653

500,089

761,425' 3,134,964

1784 to

1790,

5 years, 617,930

635.145

1,551,985 4-572,466

1790 to

17931

— 3 years, 466,893

935.776

668,366, 5,103,094

Though

AND TRADE IN THE EAST INDIES. 297

Though thefe averages fliew the ft ate of the trade in CHAP. iii.
general, and the variations it has undergone in being brought it now af-
to its prefent extent, it is neceflary to confider the two j-^nyaf-
branches of the trade to China and India feparately, in order V^^^^-
to point out the circumftances which have afFefted each.
It appears, that immediately after the acquifitlon of the
territories, the Company's fales rapidly increafed, that dur-
ing the war which terminated in 1783, they decreafed, and
that fmce the pafling of the Commutation Adt, they have
far exceeded the amount at any former period*. In con-
fidering the refpe6live branches of the trade, we fliall advert
more particularly to thefe variations, beginning with the
China trade, which has continued to be carried on upon
the fame principles, as it anciently was, except in the rela-
tion which it now bears to India, as a circuitous means
of bringing home the furplus revenues ; and then exa-
mine the India trade, both in its relation to China and to
Europe.

In treating of the China trade, before and after the i. Trade to
acquifition of the Britiih territories in India, we fhall refer ^'^"'^"
to the bullion fent to China, to the exports of Britifli manu_
fa6tur,ps, to the imports from that country, and laftly, to

* The large amount paid for bills between 17S4. and 1790, which far exceeds the
proportion of the other periods, wa^ principally occafioned by the great number of
bills drawn from India about the clofe of the war. lu the preceding ftatement of
the fales of goods, the amount received of Government for ftltpetre to 1784, is
omitted: including that amount, the average, from 1767 to 1777, would be
/.3,s68,:97, and fiom 1777 to 1784, ^.3,049,670.

Qq the

19S

OF THE BRITISH GOVERNMENT

CHAP. III. the amount of the fales at home, in order to llicw the ftate
of the trade, when it was carried on upon the general
principle of exporting goods and bullion, and importing
China produce, either as raw materials for our manufac-
tures, or as articles for home coivfumption, or for re-exporta-
tion ; and alfo the flate of it fmce any confiderable aid has
been afforded to it, from the rcfources of India.

Exports from

BriMl!! to

China, in
bullion and
in goods,
previous to
the pafTing of
the Commu-
tation Act.

The quantity of bullion exported by the Company ta
China, on an average of ten years, 1747 to 1757 was
^((".202, 634 per annum, and from 1757 to 1767 was j^. 97, 074
per annum, from 1767 to 1771 ^(".222,002 per annum ; in.
1776, the amount was ^(".88,574, but in other years none,
until the pafling of the Commutation A(5l.

It was not until the Company became pofleflTed of terri-
tories in India, that their exports of Britifh manufadure,
arofe to any confiderable amount. On the average of five
years 1762 to 1767, the goods exported by the Company
to the fa»5lory at Canton, amounted to only £.6^,6^S per
annum; from 1767 to 1777, tojr.128,235 per annum; on
the average of feven years, from 1777 to 1784, to jT.i 14,178,

Exports from The trcafurc obtained from the conquefls in India, ena-

India to Chi- 1111 ^ 11

iia, in bullion bled the govcmmcnts there to make large remittances
P?cvious°t"o'' ^° China, to purchafc the inveftment for the fales at home.
panning that jn the four years, 1765 to 1769, about ^.246,815 per ann.

was remitted in bullion, and ^\47, 422 in bills and goods.

But the exigencies of thofe governments foon rendered their

refources

aft.

AND TRADE IN THE EAST INDITlS.

299

refources inadequate to continue the fupply to this ex- chap, iir
tent, fo that, on the average of the next fixtcen years, or to
the conclufion of the war in 1784, not more than ^.58,151
per ann. and that chiefly in goods, was remitted on the
Company's account, from India to China. The Company,
however, have always rehed on this relource, as one of
the funds for their China inveftments.

Another refource for providing the China inveftment, has Bills drawn
been by bills on the Court of Diredors, payable at fpecified °e'i^{oi^s?roia
dates in England. Thefe bills have in part contributed to keep Camon.
up the connexion between India and China ; for, they have
been generally granted to individuals who traded from In-
dia to China, and paid the produce of their merchandize
into the Company's treafury at Canton, at fixed rates of ex-
change. Previous to the pafling of the Commutation Acl,
the money brought in this way to Canton was one of the
principal fupports of the foreign Companies, who, by offering
higher terms than the- Company, obtained large fums by this
means, and were enabled to trade without any confiderablc
capital of their own. On an average of four years 1762 to
1766, the bills drawn on the Company from China amounted
to ;^.2i,8do per annum. The large remittances from India,
from 1766 to 1769, rendered it unnecefTary for any bills to
be drawn on the Company from China; but during the
ten years following, to 1778-9 the average was^T-i 53, 125 per
annum. In the fix years following, that is, from 1778-9 to
1 784-5 while the revenues of India were abforbed by the war,
X'3^6,^6^ per annum, was obtained by bills and certificates.

Q q 2 It

300

OF THE BRITISH GOVERNMENT

CHAP. III.

It appears that the prime cofl of goods annually import-
Pi imc coft of cd from China to Britain, from 1762 to 1765, amounted,
cTnrto"'" on an average, to £.221,701'' ^om 1765 to 1779, on an
Bmain. average, to ^.501,137; from 1779 to 1785, on an average.

Amount of
fales.

The amount of the Company's fales of China goods
from 1762 to i7^'7, on an average, was ^.1,046,816 ; from
1767 to 1777, on an average, j^. 1,305, 444 from 1777 ^° ^7^-^x
on an average, jC'^'3°9'5+5*

Commercial SEVERAL cvcnts and circumftanccs, after the re-efta-

upon which blillimcnt of peace, contributed to bring forward the

ration Xr^"' pi'Jnciple in commerce. That the profits in trade do not

is-as founded, depend fo much on the price given for any commodity, as

upon the quantity of it brought to maiket, being fuch, as

to throw the balance of the trade into the hands of the

merchant.

Remote and
immediate
circumrtan-
ccs which re-
duced this
principle to
pra6lice.

In the firfl place, the Company appear to have re-
lied on refources from India, as one of the funds for the
China inveftment. In their Report laid before Parliament in
J 784, they computed on about ^(".250,000 to be remitted
from India to China, either dire6tly to Canton, or indi ectly
through the medium of commerce with the Eaftern IllanJs,
but the exhaufted ftate of thofe provinces rendered tire
governments in India unable, at that time, to fend any luch
lupply.

In the next place, the expenfes incurred in fupporting

the general war which terminated in 1783, required new and

* , large

AND T p. A DE IN THE EAST INDIES. 301

large fupplies to bring the credit of the nation to its prefent chap. in.
profperity. Parliament, to lefTen this burden, were led
to think of every poflible means, by which the Public might
realize the exifting home revenues. This was the true and
only expedient by which Parliament could bring the new
taxes to be laid on the Public, within the narroweft
poflible bounds. Under this imprelTiGn, in December
1783, a committee was appointed to enquire into
the illicit means pra6lifed in defrauding the reve-
nue. They found, that in 1767, 2687 men were re-
quired for His Majefly's Ihips and veflcls, employed in re-
flraining the fmugglers upon the coafts of Britain and
Ireland; to fupport whom, there was expended an-
nually, jT. 139, 724; that in 1783, not lefs than 4235 men
■were employed in the fame fervice, to fupport whom, there
was required jT. 2 20,220. One of the principal articles
fmuggled into Britain, was tea, upon tlie legal importation
of which the duties of cuftoms and excife amounted, on the
lowefl: kinds, to more than 'cent, per cent, on the prime coft ;
and, upon other kinds of tea, on an average, to- 'j^ per cent.

It appeared from flatements of the difFefent kinds of tea^
fold by the Company and in private trade, on an average
of ten years, to July 784, that lb. 4,889,392 were fold
for home confumption ; and lb. 1,468,752 for re-exportation,
making in the whole lb. 6,338,144* of all kinds of tea fold

* Of this were fold en the Company's account, - - lb. 5,927,388

Private trade of tlic Company's officers, ... I3C,40J

Priic tea, during the war, per cftimate, - . . 29i>354

lb. 6,35.8, 144

per

30J OF THE BRITISH GOVERNMENT

CHAP, ri. per aim. In an eflimatc referred to by the Commiflioners
of excife, it was ftatcd, that the quantity brought to
market by ilHcit importation, was about fcven millions of
pounds; and by an account from the Eaft-India houle it
appeared, that the amount might be eftimatcd at lb. 7,500,000.
The quantity bcfides of fadlitious tea manufa£lured from
floe, liquorice, and a(h tree leaves, in different parts of Eng-
land, was fuppofed to have amounted to more than
lb. 4,000,000 annually. Thefe different flatements tended
to prove, that the annual confumption of tea was upwards
of fixteen millions of pounds.

It was, therefore, a natural inference, that if the duties
could be recovered, upon the whole quantity confumed in
Britain and Ireland, the revenue would not only be en-
creafed, but one of the mofl profitable articles in the cargo
of a fmu2:sler, from the fmallnefs of its fize, and the fa-
cility with which it could be concealed, would be cut off.

Commutatl- These data were fuf^icient to induce Parliament to com-
i>iained. mutc the tax, from the commodity to the houfe of the

fuppofed confumer ; taking care, that this tax fliould not
reach thofc orders of people, who, from their poverty,
might be fuppofed not to make any demands upon an ar-
ticle of luxury. The number of exempted cottages has
been computed at 600,000 ; the number of houfes which
had ten windows or lefs, 520,025; each of which, rt was
computed, might confume from two to fix pound weight of
inferior tea ; the number of houfes which had more than
$ ten

AND TRADE IN THE EAST INDIES.

303

ten windows, and lefs than twenty-five, was 160,051 ; the chap. iir.

number of houfes which had twenty-five windows and

upwards, 31,835, of which thofe having fifty windows

and upwards, were about 5385* ; and though it was impof-

fible to give a probable eflimate of what might be confumed

in thefe two clafTes of houfes, ftill, from the grofs amount

of the teas fold for home confumption, whether fmuggled

or manufadlured in Britain, the inferences were obvious,

that the fales of the Eaft-India Company would be encreafed,

if the duties Ihould be lowered in fuch a degree as to enable

them to underfell the fmuggler; that the commodity, itfelf,

would be of a better kind ; that the people would not pay fo

much by a tax on their windows, as they had paid to the

fmuggler; and that a great body of men, employed in the

fmuggling fervice, would be recovered and become ufeful

fubjeds to their country.

The Commutation A61 according pafTed, and the event Effeas of ;t
almoft immediately juflified the principle upon which it i"j['o"^^^y^'^
proceeded, as will appear by a comparifon of the following
flatements of the China trade, with the flatement which
we have exhibited of it in the preceding period.

The bullion exported in the firft year, after paffmg the — Ontiicex.

_, • A o. ^ r 11 ports from

Commutation Act, amounted to ^Z^. 704, 253; and on the Britain to
average of the feven years, from 1785, the amount was

;^.5i2,49i per annum; in 1790, no bullion was exported to

* The principle of the Commutation Aft eftabliflied by fafts, by F, Baring, Efq.

China,

Chiiip..

304 OF THE BRITISH GOVERNMENT

CHAP. III. China, and it is not cxpeftcd that any will be required
for the prefent feafon. Since pafllng the Commutation A6t,
in 17S4, the quantity of Britilh manufa6lures export-
ed to China, has annually encreafed, and on the ave-
rage of the laft four years, has amounted to ^.496,713;
in the lafl: year, the exports amounted to jT. 574, 001, and in
the prefent' Icafon are eftimated at ^(".626,100.

The remittances made either direftly from India to
China, or through the mi dium of commerce with the eaftern
iflands, appear to have been as follows : on the average of
the four years, from 1786 to 1789-90, the amount of remit-
tances was j(". 195,99 5 annually ; and m 1790-91, ^(".276, 863.
This method of bringing home the furplus revenues of
India, has been of conliderable afliftance to its commerce ;
for a great part of the fums fo fupplicd, is advanced to
the country Meichants in India, who engage to repay the
amount into the Company's treafury at Canton ; and a part
is fent in cotton, &c. in the Company's fliips, from India
to China.

—On the The bills and certificates from China, on the Court of

bills from Directors, on the average of the feven years, 1785 to 1792,
have amounted to jr.603,659. per annum.

China.

—On the The prime coft of goods, annually, imported from China

P""'^.J°^ °^ to Britain, by the Company, on an average of feven years,
from 1785 to 1792, has amounted to ^^.i, 61 1,692.

The

ANDTRADEINTHEEASTINDIES. 305

The fales of China goods, on an average of nine years, chap, iit .
from 178410 1793, have amounted to jT.a, 576, 89 1 perann. —On the
Within twelve months after the a6t took place, the faUsathome.
Company fold of tea, lb. 16,152,670, or, including private
trade tea, lb. 16,307,433, which, if compared with the
quantity formerly fold, annually, viz. lb. 6,358, 144, there
remained to be fupplied by the fmuggler and manufac-
turer, from liquorice and afh leaves, nearly ten millions of
pounds.

The quantity fold from that period to the prefent, includ-
ing private trade, has been, on an average, lb. 16,455,376
per annum*, which, compared with the former fale of
lb.6,358,144, gives an encreafe of lb. 10,097,232 perann.
and nearly agrees with the computation previoufly made
of the quantity of fmuggled and manufadured teas.

1784, to !

September

1785,

i6,307)43J

1785, to

—

1786,

1 5-093.952

1786, to

■ — -

1787.

16,692,4.26

1787, to

1788,

'5'959.339

1788, to

1789,

16,003,784

ijSi), to

—

1790,

15,856,160

1790, to

— —

'79'.

16,989,748

1791, to

i792»

17,294,201

1,792, to

March
Years,

»793»
8| lb.

9.673>657

'39.870,700

? Average per annum, lb. 16,455,376

Of this, it appears, that about lb. ;,ooo,ooo per annum were for cxportatioa.

Rr The

5o6

CHAP. III.

OF THE BTs^ITISH GOVERNMENT

The large demand which immediately took place at the
Company's lales, after pafTmg this adt, cxhaufted their ftock
in warehoufe : As it was impoflible to import a fufficient
quantity, in time, from China, the Company were obhgcd to
have recourfe to foreign Companies, and, in the next and
following years, purchafed lb. 16,756,537 of tea 'on the
Continent. With this temporary aid, tliey were enabled to
keep up their faJes Until the arrival of the large importation
from China, encreafed their ftock to the full amount required.
The quantity imported from September 1784 to March
1793, has amounted to lb. 134,305,747, this, together with
what was in the warehoufes in September 1784, and imported
from the Continent, has fupplicdthefalesof lb. 139,870,700,
as already ftated, befides the teas which have been loft, da-
maged, and deftroyed, and there remains in w^arehoufe a ftock
of lb. 22,3 10,535, or more than one year's confumption.

The fums paid by the purchafers to the Company for the
lb. 139,870,700 of teas, amounted to jC'2i?339-.736, and
the duty, payable to Government, to ^(".2, 773, 621, making
the total of coft and duty jT. 24,113,357. According to the
prices at which teas were fold at the Company's fales, in-
cluding the duties before the Commutation Act pafled, an
equal quantity of teas, of the fame qualities, would have coft
the buyerSj^.46,987,101. The difference is jr.22, 873,744,
or j(^.2, 690,794 per annum, \\ hich the confumers muft have
paid, if they had ufed the fame quantities of teas under the
old regulations of this trade, or have continued the illicit
pradicc of fmuggling, and hence have thrown a large ftiare

AND TRADE IN THEEAST INDIES.

of the wealth and navigation of this countiy into the
hands of foreign Companies. The encreafe our naviga-
tion has received from this meafurc, appears from the
tonnage of lliips arrived annually from China, which, on
an average of eight years, 1776 to 1784, amounted only
to 6,059 tons per annum, but, on the average of feven
years to 1793, amounted to 18,153 tons, or about three
times the tonnage formerly employed in this trade.

The great difficulty which the Eaft-India Company expe- e^-^^ ^f ^ j^g
rienced in eftablifhine themfelves in the China trade, arofe 9°'"'""^'''

1 /- • -1 1-1 """ Aft on

rrom the almoft exclufive privileges which the Portuguefe the foreign
and Dutch had acquired in that market. This difficulty, '''"P'""*^*
after long and reiterated efforts, was at lafl: furmounted by
the pundluality of the Company's payments, by their honor
and good faith as merchants, the quantities of goods which,
from the fuppreffion of fmuggling, the fupra-cargocs at
Canton were enabled to purchafe, and by an uniform atten-
tion to the prejudices and habits of that fingular people.

Foreigners are computed to have imported from
China, on an average of ten years, from 1772 to 1782
lb. 13,050,948. Of this quantity, feven and a half mil-
lions were, on an average, fuppoled to have been annually
fmuggled into Britain and its dependencies. In the three
following years to 1785, the quantity imported by foreigners
from China, is ftatcd to have amounted to lb. 1 7,074,000,
the greatell part of which was fmuggled into this country^
This illegal traffic was carried on by money raiied in

R r 2 Great

3o8 OF THE BRITISH GOVERNMENT

CHAP. III. Great Britain, from which it mufl: have drawn upwards of
one million flcrling per annum to the Continent. By this
means the balance of trade, as well as a confiderable fhare
of the profit, and the greateft {hare of the navigation, were
throMH into the hands of foreigners. Since the pafling of
the Commutation Aft, the teas imported by foreigners into
Europe, have annually decreafed, and in the laft feafon,
amounted only to about lb. 4,600,000. The quantity im-
ported from China for America, was fomcwhat leis than two

millions of pounds*.

* Though the arguments agalnft the Commutation A<ft had an influence upon the
public opinion, before experience had proved the utility of themeafure, the knowledge
of them can only be ufeful at picfent in guardintj us againft the fchcmes which
fpeculators are, at all times, ready to llate in oppfuion to cftabliflied pradice.

Firil. It was fald, that tea being an article of luxury, Injurious to the health of
the labouring part of the people, the plan of cncreafing the fale of it, was a public
evil. In a commercial nation, it was anfwered, that whatever is in common ufe, is
a necelTary of life : that tea was confumed by the very lowcll orders of mankind ; that
they purchafed it chiefly from fmugglers, or from the illicit manufadurer, who had
adulterated it by mixtures of other herbs ; and that the injury to health was greater
by the old than by the new trade. That the money bcfidcs which purchafed the
fmugglcd tea, was drawn from the circulation of Britain, fcnt to the Continent,
to go out as foreign bullion to the China market, with the objeel of purchafing
new cargoes, to be brought to Europe, and fmuggled into the Britifli Iflands ; that
thefe could not be a ftronger illuftration of this fact, than the debafenient of the
filvcr coin of Britain. That the crown pieces of money were carefully collecfled and
carried abroad, bccaufe ihc fmuggler received js. 8d. for them as bullion ; for the
halfcrownj about is. qd. and aboiH is. id.| for the new fliilling. That the
cargoes purchafed with this bullion, were profefledly to the injury of the revenue, and,
from the temptations to perjury, of the morals of the people. That the cargo of
a fmuggling velTel was made up of tea and foreign fpirits: the tea was the lead
bulky, the moft valuable, and the moil eafily fmuggled part of it; for when landed,

AND TRADE IN THE EAST INDIES.

309

nue.

It appears, that the amount of the revenues of cuftoms CHAP. ill.

and exciie paid upon the tea fold by the Company, for five And on the

years, previous to the paffing of the Commutation A61 ^°"^^ "''*^"
(drawbacks deducted), was j(". 720,674, and that the reve-

it was difficult to feize it in quantities, becaufc it could be conveyed to places of
concealment in bags. That the fmuggler alfo proceeded upon the calculation, that
if of his cargo the tea cfcapcd the revenue officer, the profits of the voyage
were fecured; and if the fpirits could be fafely landed, that the adventure would
yield him cent, per cent. It was therefore aiked, has the health of the people fuffcred,
or have the public burdens been encreafed, by rendering the tea trade a fair one,
fince the fame quantity of wholefome tea is now confumed in Britain and its
dependencies, which was formerly done of Cnuggled or manufactured teas ?

Second. It has been faid, that the tax upon windows has been burthenfome, becaufc
it has obliged the inhabitants, in general, to pay for a luxury which formerly it was
in their choice, to ufe or not, and that the whole fcheme was merely to fupport
the Eaft-India Company, from whom the Public was to receive no return. Mr.
Baring has eltabliftied the following fads : That the lower orders of the people pay no
part of this tax, and yet can purchafe the tea from the licenfed retailer at a lefs price
than they formerly did from the fmuggler : that the difference of price upon the
quantity of tea confumed in the fmallcfl houfes which pay the tax, is more than fuffi-
cient to defray it, and that the quantity of tea confumed in houfes which have more
than ten windows, by fervants, &c. to whom it is univerfally allowed, is more
than fufficient to difcharge the amount of the additional tax. That the fcheme was
intended to fupport the Eaft-India Company's credit is certain, and was avowed. It
was impoffible for them to carry on the China trade (and this was known to be
a very valuable branch of their privilege), while the duty on tea was fo high
as to induce the fmuggler or manufafturer to bring near lb. 10,000,000 into the
fliops of the retailers. The quantity fold by the Compan}', at an average,
before the paffing of the Commutation Aft, was about lb. 6,000,000, and this was all
that did pay duty. The average quantity fold by the Company fince the paffing of the
Commutation Aft, has been about lb. 16,000,000, fo that the I'ublic have been bene
fitcd by duties having been paid on about lb. 10,000,000 of tea, by having acquired
a decided fupeiiority in the Chinefe market, and by a proportional encreafe of their
Clipping, exports, &c.

nucs

j,o OF THE BRITISH GOVERNMENT

CHAP. III. nues from tea, and the commutation tax on windows paid
fince the pafling of tliis ad, have been iibout ^'.800,000
per annum.

Eftortsofthe NoR havc the cfFoits of the Company been wantmj; to
cxtin'd tiie extend the circle jf their trade in i's coiuiexion with China.
thcir'traJe ^^ ^^'^^ cxpenfc of about j^. 100,000, they have made an efta-
wth China, bhfliir.cnt on the ifland of P.nan^\ with the object of its be-
coming a depot for fuch g'oods, as the iflands could furnifh
for the China market ; and, thout^h it is difficult, at pre-
fent, to pronounce on what the value may be of the attempts
to create a trade from Nootka Sound to China, yet from
the trials which have been made, there is reafon to expert
that it may become a ufeful branch of the commerce.

Iicfuit of ihc Such are the fads with refpecSt to the China trade, fimply,

whole of . . ^ . , , ..... . ,

thcfe farts lu its lources ; in the means by which it is carried on;

and even:?. j^^ jj^^ balance of trade which has been thrown into the
hands of Great Britain; in the encreafe of our navigation
which it has produced, illuftrated by the events which have
brought it to its prcfent magnitude and profperity. The
inferences, fo far as regards the China trade, therefore are,
that the flock of the private merchant cannot be fuppofed
equal to it ; for, however profitable a fingle voyage might be
to himfelf, in his competition, either with the Eaft-India
Company (who ftill would remain a body corporate, en-
titled to trade on their joint flock) or with the other Eu-
ropean Companies, trading on their joint ftocks, his per"
feverance might bring on his bankruptcy or his ruin*

That

AND TRADE IN THE EAST INDIES.

That the credit of the Company, with the Chinefe, has chap. in.
been eftablifhed and known to that people for upwards of
a century ; and that fince the pafTing of the Commutation
Act, whole foreign Companies have failed, while we have
obtained a preference in the Chinefe market. The Com-
pany are infl:ru6led in the manners of tlic mercantile Chi-
nefe, and polleffcd of their confidence, and therefore tlie
beft. qualified to carry on the trade either with profit, or with
fafeiy to the Britifli fubje6ls. A finglc a6"t of imprudence
in a private adventurer might not only expofe himfelf to
ruin, but bring that ruin upon all who fpoke the fame
language with him-j-^

The principal facts thus to be judged of by the Public,
and the Legiflature, in forming a lyftem for the China
trade, and the events which have brought it to its prefent
magnitude, all tend to prove the neceffity of continuing it
with the Company. To venture upon ipecuLitions in the
mode of condudling this trade might deprive the Public of
the revenue arifing from this commerce, throw the ba-
lance of it into the hands of other European Companies,
and withdraw from Great Britain an extenfive and ufeful
branch of its navigation.

f The waddins; of a gun fired, upon fomc fcftival, from an India fliip, hap-
pened to kill a Chinefe in the river of Canton, a demand was made for the innocent
gunner to be deliveued up, with a threat that in cafe cither of delay or non-
compliance, not only the fervants of the Company at their faftories, but all who-
fpoke the fame language (ho u Id be puniflied^ The Captain offered every compcnfation,
and even to punilli the man himfelf, but was obliged ultimately to comply, and to.
deliver him over to whatever death the Chinefe thought proper to inflift.

3 The

trade.

5ii OF THE BRITISH GOVERNMENT

CHAP. III.^ The fecond afpea which the trade to the Eaft-Indles
II. India prefents, is ihai to the peninfula of India, in which Great
Britain had originally feats of trade only ; but where, within
thefe laft thirty years, it has acquired territories, yielding
revenues, the furplus of which has been brought home
through the medium of its commerce.

The Eaft-India Company, on their firfl: inftitution, fent
fliips to the different coafts of the peninfula of India. By
means of bribes and of tributes, they obtained from the
Moguls, Soubahdars, and native independent Princes- and
States, permiffion to eftablifli fa6lories or feats of trade ;
in which they placed guards to protect their property, and
the lives of their civil fervants. In progrefs of time, they
got poffeflion of Bombay, the harbour of which, as well
as its natural fituation, on the weft coaft of India, enabled
them to eftablifli a marine fufficicnt to balance the naval
force of the Mofruls and Mahrattahs then contending; for
empire in that quarter of India. Though the trade to
India, even at this period, was, in many inftances, dlre^
from and to Britain ; it was, in others, circuitous to the
Iflands, to China, and to Europe.

With the objeft of bringing forward the fadls and events
upon which a plan for the future regulation of our India
trade can be founded, we ihall Jirji confider the fubjedl in
a commercial light only ; fecondly, in the connexion which
has been eflabliihed between that trade and the revenue;
thirdly y in the relation wliich the debt that the Company

5 have

AND TRADE IN THE EAST INDIES. 313

have contracted for the defence of thofe provinces, bears to chap, iir
both of thefe fources; and lajlly^ in a coll eftive view, from
the fums paid by the Company to the Public on the renewal
of their charter, from the amount of the duties and cuftoms
received by the Public, and of the dividends received by
the Proprietors.

Previous to the acquifition of territories in India, the Bullion fent
principal part of the trade of the Company was carried the acquif"
on by the exportation of bullion, and by bills drawn on the "°". °^ ^'^'^
Court of Dir^dlors, as the exports in Britiih manufa6lures
formed but a fmall part of the refources, by which the
inveftments in India and China were procured.

The treafure obtained during the war, in which our pro-
vinces were acquired, lefTened the exportation of bullion
from Europe to India ; at the fame time, by extending
the circuit of our commerce in India, the demands for
European goods were encreafcd. The fortunes acquired
by individuals, in that country, which they remitted to
Britain, became alfo a refource for providing the inveft-
ment, by enabling the Governments abroad to draw bills
to a larger amount on the Court of Dire6lors.

The termination of this war left the Company in pofTef-
iion of large and fertile provinces ; their trade rapidly
encreafcd, the additional amount requifite for the purchafe
of the enlarged inveftments, was fupplied by the revenues
realized from thofe territories, by bills on the Court of Di-

S s rc6tors.

314 OF THE BRITISH GOVERNMENT

CHAP. iir. redlors, or by the produce of the greater quantity of goods
received from Europe ; and, befides tViefe, confiderabl©
fupplies were fcnt to China, cither directly or circuitoufly
through the commerce of the Eaftern Iflands, for the pur-
chafe of the inveftments at Canton. Under this fyftem,
■ the trade to India has been conduced for upwards of thirty
years; and although it may be confidered as a feparate
branch from the trade to China, yet both have formed but
one great concern, connefted in fome relpcfts, by open
and direft channels of reciprocal fupport ; in others, by
thofc indiredl and almoft imperceptible flreams by which
the trade of diftant nations palTcs, in a circuitous com-
merce, through various intermediate countries.

Os the average of the ten years, from 1747 to 1757,
^.564,423, in bullion, was exported to India ; but after
the year 1757, bullion was no longer exported thither,
except to the amount of about _^. 20,000 per amium, to
Bencoolen, and Saint Helena, &c. From this period
alfo, the export of bullion to China very confiderably de-
creafed, and it was only fent out occafionally after the fup-
plies from India failed.* This circumftance is explained in
almoft every letter lent by the Direclors to their fervants

* From r;6o to 1764, only /.33,775 per annum, was exported both to India and
China. In 1764 and 1765 /.300,967 per annum was exported to China; in the
two following years only ^.473 per ann. in the next loaryeais £ 252,002. From that
i;eriod to the pafling of the Commutation Adt, none was exported to China, except
in 1776, when the amount was ;^88,574. In the 28 years from 1762 to 1790,
^^.17,260 of bullion, on an average, w.ii exported to Bencoolen, &:c.

AND TRADE IN THE EAST INDIES. 315

at Madras and Bengal, wb.ich contained inftru£lIons to CHAP. iir.
them to colled as much bullion as they poflibly could, to- "
be ready for the lliips which iliould come out for Madras
andCh.'na; and by the anAxers to thefe letters, fpecifying
the quantity lent by the different veflels. The large
^rain of bullion from India (particularly from the Bengal
provinces) in confcquence of this mercantile, but im.politic
meafure, had the unhappy effedt of producing a decline
in Indian arts and manufactures. This evil has, perhap.s,
been improperly referred to the opprefllons of the Com-
pany's governments.

The exports of BritilTi produce to India were greatly en- Expons.
crealed by the acquifition of the territories. On the ave-
rage of five years 1762 to 1767, the amount of goods and
ftores exported to India was ^(".386, 310, which wasjT.i 18,580
per annum more than had been exported in the ten years,
1747 to 1757, both to India and China, Although during
this war, the rifks which the Company's fliips ran of being
captured, would tend to lefifen the profits on the goods
exported, and of courfe, to have reduced the quantity ; yet
the encreafed demand for naval and military ftores for the
defence of thole provinces and their coafts, counterbalanced
any decreafe arifing from the caufes ; and on the whole, the
total value of exports was greater than it had been before
the war commenced.

Upon the reftoration of peace, thofe circumftances which
had kept up the export trade during the war, had a neceflary
tendency to encreafc it, if not to carry it beyond that degree

S s 2 in

3i6 OF THE BRITISH GOVERNiMENT

CHAP III. In which the profits from it would give the expefted return.
The Company's fer\ ants, civil and military, in the firft place,
required large fnpplies of European produce; next the na-
tives, reltored to their former tranquillity and induftry,
took proportions of them, both for ufe and for fale;
and laftly, an opportunity was given, and fchemes confe-
quently formed, to ftrike out new branches of trade in the
countries of thofc nations through which our armies had
pafled, and given, perhaps, for the firft time, a rclifh
for European produ£lions. Fa61s have juftificd thefe
conjedurcs; Britifli manufadtures were not only carried
out in large proportions on the Company's lliips, and in
thofe of foreign Companies, but immenfc exports were made
by private Biitifh merchants under the Imperial flag.
The market of courfe was overftocked; Britifh pro-
duce fold below prime coft; and the Dire6lors began to
complain, without adverting to the true caufe of the decline
of their export trade. That decline will appear from the
following averages, compared with what we have already
ftated. From 1767 to 1777, the value of goods and ftores
exported to India, was, per annum, ^.371,840, From
1777 to 1784, ^.364,746, and from 1784 to 1790,
yr.357,764. If, however, the exports, by the Company, to
India from thefe caufes, at this latter period, declined, the
export trade to China was confidcrably cncreafed, and by
the exertions which have been lately made, the export trade
to India has been greatly improved, fo that on the three
years average, 1790 to 1792 inclufive, the value of export
goods was jr.41 5,264 per annum, which exceeds the amount
of any former average. In

AND TRADE IN THE EAST INDIES. 317

In order to difcover the true ftate of the Company's chap, iil
export trade, and whether any further meafures could be
adopted for enlarging it, a report was made, in 1792,
by a Sele6l Committee of the Court of Directors, on the
quantity and value in England of the feveral articles exported
by the Company to India, and the profit or lofs on the fale of
thofe articles in that country. It appears, that in fix years
to 1789-90, they fold woollens to the amount of ^.576,051,
the prime colt of which, in England, was ^(".520,120; and
metals in the fame period to the amount of ^T. 1,010,01 1,
the prime cofl of which was ^.760,169; the charges on
which, of freight, intereft on the prime coft, &c. appear
to have abforbed the profits, and a lofs on the whole
is ftated, at jr.4,652 per annum. The exports in private
trade, are eflimated at jT. 126,680 per annum, befides naval
and militaiy ftores, and thefe appear to have been profitable
articles, a circumftance which has given rife to the new
regulations laid down, for the private trade allowed to the
Commanders and Officers of the Company's iTiips, In the
fequel we fhall advert more fully to this lubje6t; it is fuffi-
cient, at prcfent to obferve, that the market is returning
to its proper level, and confequently that the demands for
Eritifh exports mud become more certain, and yield a
moderate profit.

The prime coft of goods imported from India, on the Com- impan*.
pany's account, from 1761 to 1766, when they became
poffeffed of the Duannee, amounted on an average to
^549,712 per annum. On the average of the next five

^ years

iS OF THE BRITISH GOVERNMENT

CHAP. Ill, years to 1771, jr.941,187 per annum; and on tlie average
oi the following eight years to 1779, jT. 1,243, 17S. ^^ ^^^'^
period the importation of goods from India was con-
fidcraMy IcfTencd by the war, in which Britain was then
engaged with the different powers of Europe ; and on the
average of the next three years, the prime cod of cargoes
ihippcd from India, was only jr.803, 356 Pcr annum. This
diminution, together with the loiTes from the capture of
fliips, &c. occafioncd the warehoufes at home to be ex-
hauflcd of India goods, and in March 1784, only fome
faltpetre and drugs, to the amount of jT 94,085, remained.
In 17S2-3, goods to the amount of jT. 1,174,139 were
exported from India for England. In 1783-4, a large
amount was raifed by loans in India, for biUs on the
Court of Directors, for the purpoie of procuring an
inveftment to fupply the exhaufted warehoufes at home,
and goods to the amount of ^.2,098,609 were fliipped
for England in that year. The extraordinary quantity-
imported in 1783-4, (confifting chiefly of goods from
Bengal) occafioned a decreafe in the lubfec^uent years, but
taking an average, for feven years, from 1782-3 to 1788-9
the coft of the goods annually fhipped for Europe, amounted
to jr.1,222,832. On the average of the laft three years to
1791, the coft of India goods imported, was jT. 1,1 70, 225*.

* In all thefe ftatements the current rupee is valued at is. 3d. the Bombay rupee
at 2S. 6d. the pagoda at 8s. and dollar 5s. According to the prefent rate of ex-
change, this valuation, with rcfpedt to the rupees, is ^th too much ; but as all the ac-
counts were formerly made up at thefe rates, it feemcd proper to continue it here, in
•rdcr that the different periods might be compared,

2. We

AND TRADE IN THE EAST INDIES. 319

2. We have^ in the fecond place, to trace the connexion CHAP. in.
which has been eftabhlhed between the trade and the reve- Conneaion
nue. The defence of the feats of trade firft obliged the Com- °lf^lS''
pany to employ their armies ; the vidorics of thcfe armies ^'^"^ revenues.
gave to Britain rich provinces ; a part of the revenues were
to be applied to keep up a force for defending the acquifi-
tion ; and the furplus was to be realized in Britain through
the trade ; the right of the Public to the territories was ad-
mitted, and explained by Parliament, in its having accepted
quit-rents for one or more years, and by the Company becom-
ing veiled with a delegated authority, and afting under a leafe
for a fpecified time. The trade then was confidered as necef-
iary for rendering the furplus revenues of utility to the
Public. Such are the fa6ts and events which explain the
connexion between the trade and the revenue.

The revenue, from our firft conquefts to the acquifition Piogrcdive
of the Duannee and the Northern Circars, amounted an- thTrevauies.
nually to about ^^.146, 584*; the revenue from 1766-7,

* The dlftricls which the Company polTeffed in India, before 1757, ^'C ft;ued
to have produced the following revenues;

Cuftoms, &c. at Bengal

—

jf .23,583 per annum

Madras

—

64,14+

Bombay

—

S6,5<^7

13encoo!eii

2. '45

320 OF THE BRITISH GOVERNMENT

CHAP. III. at ^vhich the Public may date the full poflcfiion of the ter-
" rltories, to 1768-9, amounted, on an average, to about

j(".4, 1 00,000 per annum. The fubfidies afterwards agreed to be
paid by country powers for military aid, &c. and the bringing
the fait and opium revenues under the diredion of the Com-
pany confidcrably encreafed the revenues and exj-enfes. On
an average of three years, 1776-7 to 1778-9, the revenues
amounted to j(. 5, 304,352 per annum ; at the peace of 1 784,
on three years average, to 1786-7, ^.6,245,605.; on an
average of the three )cars 1787-8 to 1789-90, j^. 6,901, 310.
The civil and military expenfes, at the fevcral Prefi-
dencies, were nearly as follows : Before the acquifition of
the Duannce and the Northern Circars, from 1750 to
1755, they amounted to £-2os^55^ P^^' annum; but in
this, it muft be obferved, that part of the expenfes of the
war, of which the acquifition was the iflue, is included.
The civil and military expenfes, on the three years average,
1766-7 to 1768-9, amounted to jC-3-4^3 7^2 per annum ;
on an average, 1776-7 to 1778-9, to jC.4,341,725 ; from
1784-5 to 1786-7, ^(".5, 9:0, 269 ; on the average of three
years 1787-8 to 1789-90, ;^.5, 368,788 per annum*.

Although the revenues and charges, at different times,
are here dated, by way of illuflration, the articles which
are included in the latter periods, and not in the former,

* The intcrcft paid on the bond or otiicr debts in India, is not included in thefe
ftatements. The amount of civil and military charges here flateJ, is the total paid
in each year, under thofe heads, no accounts having been made of the expenfes
annually incurred.

prevent

AND TRADE IN THE EAST INDIES. 321

prevent any compaiifon being drawn. The fales oF fait, CHAP. Iir.
opium, &c. and the advances to the manufa6lurers,
&c. form now a very confiderable article of receipt and ex-
penditure, which formerly did not belong to the Com-
pany.

It is immaterial, in illuflrating the principle upon which Objev^s to
the trade refts, to enter into a minute detail of the par- furpiis wL
ticular applications of the Indian revenues at any one pe- h"|'"^i'j.^ "*
riod. It will be fufficient to advert to tlie original pur-
pofe to which the furplus was intended to be applied, viz-
the purchafe of ifivejirnents for the trade, and then to bring
forward the circumftances which, at times, have prevented
this appropriation, and brought the trade, in its turn, to
contribute to the deficiencies of the revenue.

The principal part of the furplus has, upon a general
view of the revenues and expenfes of the Company's
territories, arifen from Bengal. It is, indeed, true, that Ma-'
dras, before the war ending in i 784, yielded in fome years
from ^(".50,000 to jT.aoOjOoo per annum ; but fince that pe-
riod, neither the revenues of it, nor of Bombay, nor of Bcn-
coolen have, at any time, been equal to the charges of thefe
fettlements. Hence, in one view, thefe fettlemcnts have
been a charge upon Bengal; but, in another, as commercial
depots, they have been neceflary and profitable: as mili-
tary ftations they afford a check to the entcrprizes of the
powers on the eaflern and weftern fides of India, and thus

T t become

322

OF THE BRITISH GOVERNMENT

CHAP. III.

become equally a fafeguard to Bengal as the forces aflually
in that Prefidency. The conclufion, therefore is, that the
revenues from India could only be realized through the trade,
and that the whole of the Company's concerns is made up of
parts mutually fupporting each other, and incapable of
being reduced to the mercantile idea of a diftind profit
and lofs from each tranfa6lion.

Sources of
the debt of
the Compa-
ny, as con-
traifted upon
the whole of
the revenue
and trade.

3. We have, in the third place, to examine the relation
which the debt of the Company bears both to the revenue and
to the trade. The wars from 1747 to 1765 (for we can
fcarcely confider the temporary convention with France in
1754-5, as an interruption to our contefts in India) obliged
the Company to incur an annual expenfe, greatly beyond
what the revenues, during the war, could be fuppofed to
yield. Confiderable fums were alfo laid out on fortifica-
tions, &c. (what the Company have termed their dead
ftock) in order to put their acquifitions in a flate of de-
fence, either againft the attacks of the native ftates, or of
their European enemies. Thefe expenfes, of necefTit}', ac-
cumulated during the war which ended in 1784, in which
the Company had to defend itfelf, not only againft a general
combination of the native powers, but againft the attacks of
the European enemies of Great Britain, both in India and
on their outNvard and homeward bound fhips.

Progp-efliTe The whole of thcfc circumftances, taken together, afford

^e''dc"bt5°^ us a progreflive view of the feveral fourccs of tlie debts, which

the

AND TRADE IN THE EAST INDIES. 523

the Eaft-India Company have been obliged to contra6l. The CHAP. IIL
amount of debts, inckiding the capital flock of j(". 3, 200,000,
and annuities of jC.2,992,440, flood at home, in June 1764,
at _^. 1 1,294,640; and in India, the bond debt was jC.220,235,
making together ^.11,514,875. The obtaining pofTefTion of
the Duannee, &c. occafioned fome encreafe of debt, which
was afterwards paid off; as alfo was the debt contradled
during the war with Hyder Ally, in 1769 and 1770, fo that
previous to the war which ended in 1784, the debts flood
as follows: at home, in Jauuary 1779, ^.10,726,337, and
in India, at the clofe of the year 1777, £.S5^'5^4-> making
together ^.11,282,861.

When the accounts were made up and fettled in 1786-7,
after the conclufion of the war, the debts at home and
abroad, including the capital flock, then of jT. 4,000,000,
amounted to ^(".25, 908, 334;* or, if the ^^.440,000 raifed in
addition to the nominal capital of jT. 800, 000, were to
be confidered as borrowed to pay off the debts, the total
would be jr.26, 340,000.

In 1790-91, the debts amounted to ^.23,198,721, includ-
ing the capital flock of ^(".5, 000, 000. This fum, dedu6led
from the amount of j[-2^,^oS,22A7 ^s before flated, would

* Detts at 31ft January 1787, ;C. 15,4+3,349 — 1 ft March 1791, ^^.13,978,436
In India, 30th April 1786, 9,954,144 — 30th April 1790, 7,029,253

China, 38th February 1 7 86, 510,841 — 14th Feb. 1790, ^ 1,696

Transferred dcbttrom India 2, 189,336

^25, 908,334 .

■ ;C-23»'98,72i

T t 2 make

324 OF THE BRITISH GOVERNMENT

CHAP. Ill , make a redu6lion of jr,2, 709,6 13, bcfides which, there had
been paid in this period ^200,000, of a debt owing pre-
vious to 1787, for His Majefty's forces ferving in India.
Towards thefe payments, £.y ^0,000 \\ as railed by the fub-
fcription of i 74 per cent, to the new capital of one million,
allowing for which, the aduai diminution of the debt is up-
wards of t^vo millions.

The war in which the Company have lately been engaged in
India, has undoubtedly encreafed the amount of their debts;
but as the accounts for making up a (late of their affairs, in
this refped, at the termination of the war, have not yet been
received, it is impofllble to afcertain, with prccifion, what
that addition may be.

It has been already ftated, that the revenues contribute to
the whole trade, and that the trade is now neceflarily con-
neded with them. The debt, therefore, has been contracted
in protedting the one, and in acquiring and defending the
other.

Refult. From the flate of the Company's affairs at the conclufion of

the late war, compared with their prefent fituation, it appears,
" That their capital ftock, paying a dividend of ^.S per
" cent, fold for lao per cent.; that their bonds, then bear-
" ing ^.^ per cent, intereft, were negociated at £.4. difcount ;
" that their bonds and certificates at Bengal and Madras,
•' bore from 18 to 40 per cent, difcount, at Bombay 50 per
" cent. ; and that orders on the ti'eafury there fold tor 65
6 *' per

AND TRADE IN THE EAST INDIES. 325

♦' per cent, dilcount." In a little more than four years after chap, iii.^

the peace, their debts were reduced upwards of two millions,

and about as much more was employed in extending their

trade. *' Their capital flock fold for 174 percent, and has

*' fmce been upwards of ^.200 ; they have negociatcd their

" bonds, reduced from 5 to 4 per cent, interefl, at ^.5 r'js.

'* premium; their paper at Bengal, in 1789, bore a pre-

" mium, and their certificates in that fettlement, when

*' the late war, in India, broke out, were beginning to be

" negociated at half the legal intereft of the country*.'*

The amelioration in the ftate of the Company's affairs^

has arifen from the improvements which have been made

both in the financial government abroad, and in the

management and extenfion of the trade ; and it goes to

prove, that the debts of the Company ought to be con-

fidered as a burden both upon the revenues and the trade*

Indeed the plans which the Company have laid down, to

liquidate their debts, and the meafures which government

have purfued for the fame end, eftablilh this inference.

Though it is impofllble to queflion thefe fa61s, feveral cir- Qucflion,.
cumftances may occur to induce thofe who are to examine n-.JehaVa^
Indian affairs, to form different opinions refpedine: them : '^'*'"' "" '***

•T -f^ o ' revenues..

and, on the prefent fubjeft, in particular, it has been
argued with difcrimmation, that the revenues are indebted to
the trade, or, in other words, that the trade has contributed
to the defence of the provinces, confequently, that the

* General View ot the Affairs of the Eaft-India Company, by G. Anderfon, A. M.

Company,

326 OF THE BRITISH GOVERNMENT |.

CHAP. III. Company, in any fettlement, with Government, have a
claim to the amount.

Mr. Nathaniel Smith (late Cha-rman of the Court of
Dire6lors), has furniiheJ the Public with very inte-
refting ftatemcnts, to prove, that the revenue is debtor
to the trade to a large amount, and that the Public could
have- no title whatever, in the firft place, to (hare in the
profits of the trade, further than it contributed, through
the medium of duties, to the home revenue; and, in the
next place, that the Company were entitled to a reimburfe-
ment of every expenle which had been incurred on their
trading property, in the acquifition and proteftion of the
Indian provinces. Thcfe propofitions he illuftrates, by
fhewing, that as no part of the Indian revenues can be
realized in England, but through the inveftments from India
and trade from Cliina, the expenles, both at home and
abroad, which the Company's trade has paid to protect the
provinces, ought to be reimburl'ed to them, before the Public
can participate in the revenues.

In fupport of thefe opinions, he ftates, that during the
fifteen years war, from 1750 to 1765, and from that period
to 1780, the revenues from the provinces in India, flood
debtor to the trade jT ^5,616,215. By a fimilar account, it
appears, that this debt was cncreafed on the ift of March
1790, to nearly ;i(". 5,000,000. If any meafurcs, tending to
feparate the trade from the revenues, ihould be propofcd
or adopted, the Proprietors would confider thcmfelves as

4 entitled

AND TRADE IN THE EAST INDIES. 327

entitled to be repaid this amount, as well as other fums
which, to a very confiderable amount, the Company have
paid for debts transferred from India and towards defraying
the expences of the late war. Befides thefe fums, it would
be expelled that the debts which have been incurred for
the defence of the territories in India, Ihould be charged
againll: the revenues.

Claims of this magnitude would require the moft minute
invcft gacjon of the various particulars of which they are
compo ed, and of the reciprocal advantages which die
trade has derived from the Company being pofTefl^d of
the territories to which they traded, and the territories
from the tiade. It would then remain for the eq uty of
the Leg (l.sture to decide upon thofe claims, and on the
means of reimburfing the Proprietors for the fums they
have advancf:d, and cnablmg them to dilcharge the debts
they have mcurred, at Lhe rilk of their capital, in fupport-
ing and defending the Britifh territories in India-

In the adlual flate of the trade and of the reve-
nues, however, all reasonings on the fubjeft feem un-
necefiary, farther than 10 fix our attention on the fa6l,
that thele claims of ihe Proprietors, are an additional
realbn for continuing the prefent union between the trada
and the pvenues, and for granting the Company fuck
terms as fhalJ enable them to difcharge the debts which,
they have contracted in defence of the Indian provinces and
of their trade, and to realize the value of their ftock.

Having

CHAP. III.

V /

«28

OF THE B ?s. I T I S M GOVERNMENT

CHAP. III.
« . '

di.i trade to
the Proprie-
tors and to
the Public.

Having thus given a general ftatement of the fonrces
CoUcciive ^"^ extent of the trade of the Eaft-India Company to
view of the c^jna and to India, on the averaees of feveral periods,

advantages or ^ '■

the E;.ft-in- which appeared fufficicnt to illuftrate the progrefs of the
trade to each of thofe countries, and the events which have
brought it to its prefcnt flate ; we have next to examine
the benefits which the Pubhc have derived from the Com-
pany's trade to the Eaft-Indies, and from the revenues of
the territories in India. As the funis which the Company-
have lent or paid to Government have been for the whole
of their privileges, and as the dividends on their capital
flock are made from the whole of their trade, we Ihall con-
fider this part of the fubje6l in a collective point of view,
ftating the fumf which they have paid on the renewal of
the charters,- for their exclii five privileges, the amount re-
ceived by the Publ c, in duties and cufloms, on their trade
in general, the dividends received by the Proprietors, and
the amount paid by the Company, under the general head
of charges of freight and of merchandize, to the perfons em-
ployed ni the ordinary courfe df the trade.

—in the fwns
paid on the
reiiRWal O;
their csclu-
five charter.

The Company, as has been already flated, have lent to
the Public, at ditFerent periods, from 169S, ;^. 4, 200, 000 at
ditlcrent rates of intercft ; but which now bears only 3 per
cent. And they have paid to the Public, as a price for their
exclufive privilege of trade, or, as a fpccies of quit-rent,

for holding the territories in India, jC-2,y6g,2g^.'*

The

* On the renewal of their charter, in 1698, the Company lent ;f.i,coo,ooo to the
Public, at 8 per cent. In 1707, ;£'.!, 200,000 at ; per cent, and agreed that the

intercft

AND TRADE IN THE EAST INDIES. 329

The funis which the State has. received from the duties chap. iii.
and cuftoms on the Eaft-India trade, have of courfe va- —in the a-

ried according as the extent of that trade has varied, and ho"me diities
as higher or lower duties have been laid upon the feveral and cuiioms
articles of which it has been compofed. The amount of inXaVrade.' '
the cuftoms and duties on goods from India and China,
including the excife on teas, &c. as near as can be efti-
mated, was, on the average,

From 1750 to 1757, £• 908,642 per annum.

1757 to 1767, ^.1,067,604

1767 to 1777, jr.1,356,841

1777 to 1784, ^.1,311,409

tntercft on the former loan ftiould be reduced to 5 per cent. In 17 12, the charter was
renewed without any new terms being rctjuired. In 1729 the renewal was' for thirty
three years, and a right granted to remain a corporate body for ever, on paying to
the Public — — — — £• 200,000

And agreeing that the intereft on their loan fliould be reduced to 4 per

cent.
In 1744 the charter was renewed on lending the Public ;f.i, 000,000 at

3 per cent.

In 17JJ the intereft on the former loan was reduced to 3 per cent.

In 1767 and 1769, inconfequenceof their holding pofleffion of the terri-
tories in India, the Company agreed to pay the Public ^f .400,000 per "
annum, and under this agreement paid — — — — ;C'2»i69,399

In 1781, on tlfeir charter being renewed to 1791, and three years notice

•(as tifual) they agreed to pay the Public — '- £• 400,000

U u In

330 OF THE BRITISH GOVERNMENT

CHA P. III. In 1784 the Commutation A61 pafied, and the Juties on
tea were lowered from the very high rates at which they
before flood, and a tax on windows Avas laid to compenfate
for the deficiency which, it v/as apprehended, might thence
arife in the amount of the pubhc revenue.

The circumflances which led to this meafure, and its
beneficial conlequcnces, have been already explained. We
fhall therefore only remark, that the great increafe which
has been made to the Company's trade, has nearly compen-
fated for the redudion of the duties on tea. On the ave-
rage of eight years 1784 to 1792, the cuftoms and du-
ties on Eall India goods have amounted to ^^.964,238 ;
and if the year 17S4 be omitted, in which the meafure
could have but a partial efFedt, the average would be about
^.1,000,000. *^r

It is, however, to be obferved, that the whole of the
cuftoms and duties, above ftated, has not been really paid
to the State, the greateft part of the cotton goods, as
callicoes and muflins, is re-exported ; as is alfo fome part of
the tea, of the drugs, grocery, filk, &c. fold at the Com-
pany's fales, on which a confiderable drawback is allowed.
The drawback on the India and China goods, fo exported,
has, in fome years, amounted to a third of the whole duties
paid ; but confidered, in a general point of view, it is pre-
fumed, that whatever drawbacks are allowed, or bounties,
granted on goods exported, the country is benefited, on the
whole, more than the fums Jfo drawn from it's revenue.

♦ By

AND TRADE IN THE EAST INDIES. 331

By this means Britain is made the grand emporium for Afiatic CHAP. Iir.
produce, that produce is imported in Britilh fhips, navi-
gated by Britifh failors to and from Afia, and is re-exported,
in the fame manner to the Continent, from whence other ar-
ticles, paying duties, are brought in exchange. By the re-
fort ahb of foreigners to purchafe Eaft-India goods at the
Company's fales, large circulations of trade are kept up,
and the commerce of the country, in other articles, is confi-
derably invigorated.

Such has been the participation which the Public have
received of the trade and revenues of the Company, arifing
from fums lent at particular rates of intereft, or paid as
quit-rents for the territories in India, and for the exclufive
privilege of trade, or as derived from the cuftoms and du-
ties levied on the goods imported from the Eaft-Indies to
Great Britain.

The next point of view in which we are to confider the -ri" '''^ ^^■
trade of the Eaft-India Company, refpefts the amount of ceivedbythe
the dividends on the capital ftock, which it has yielded ^'"i'""*"^'
to the Proprietors. At the union of the two Companies,
the dividend was only five per cent, it immediately rofe to
eight, foon afterwards to nine, and in lefs than three years
to ten per cent. From this rate it varied, as circumftanccs
afFe6led the trade, to eight and to feven per cent, until the war
in Europe and in India reduced the dividend to fix per cent,
in 1756. Taking the forty-feven years from 1709 to 1756,
the average amount of the dividends on the capital of

U u 2 jiC.3, 200,000

332 OF THE BRITISH GOVERNMENT

ciiAr. HI. _^.3, 200,000, for that period, is eight and a quarter per cent.*
During the next eleven years to Chriftmas 1766, when
the Company became fully polTcflTed of the territories in
India, the dividend was only fix per cent. In 1767 it rofe
to ten, next to eleven, then to twelve, and to twelve and a
half per cent. In 1772 it was reduced to fix ; in 1 777 it rofe
to feven ; in 1 778 to eight per cent, at which rate it has con-
tinued to the prefent time. In 1786, the capital was raifed
from ;^.3, 200, 000, to ^.4,000,000, and in 1 789, to^^". 5, 000,000.
If we take the nineteen years and a half, from 1767 to Mid-
fnmmer 1786, when the firft addition was made to the ca-
pital flock, the dividend, on an average, amounted to eight
and five twelfths per cent.t On the whole, therefore, the
Company's dividends from the acquifition of the territories in
India to the time at which it was found expedient to extend
their capital, have fomewhat exceeded the average rate before

* The dividends during this period were as follows :

years

Chriftmas 1708 to Lady-dny 1709 5 at
Lady-day 1709 to Michachnas 1709 5 at

; per cent.

1709 to 171 1 2 at
1711 to Midfummcr 1722 io| at

9
to

1722 to 1732 10 at

1732 to 1743 II at
»743 to Clmftmas 1755 12| at

+7 years, average 8J per rtnt.
The next eleven years, from 1755 to 1766, the dividend was 6 per cent.

■j- The dividends during this period were as follows:

Chriftmas 1766 to 1768 2 years, at 10 percent.

1768 to 1769 I at 1 1

1769 to 1770 I at 12

1770 to Midfummer 177; if at i2|
Midfummer 1772 to 1776 4 at 6

1776 to Chriftmas 1777 i| at 7

From Chri{lmas 1777 to the prefent time 8

that

AND TRADE IN THE EAST INDIES. 355

that event. But if the eleven years from 1756 to 1767, chap. 111.
while they were acquiring thofe pofleffions, be taken into
the account, the reduced rate for that period would bring
the average below its former amount.

Before we conclude this part of the fubje6l refpecSling Amount of
the general flate of the Company's trade, it fcems proper, oHrelghtaud.
in order to fhew flill farther the importance of it, to ftate of merchant

dize>

the fums which have been paid from it for the freight of
fhips, and for the charges of the warehoufes, falaries of the
Company's fervants at home, and other expenfes in this
country, which are claflcd under the general defcription of
charges of merchandize.

Paid for Forchargesof
freight. merchandize.

From 1749 to 1757, average of 8 years, 277,432 107,306

1757 to 1767, — 10 39^5498 i49>658

1767 to 1777, — 10 490^2.59 209,115

1777 to 1785, — 8 5675754 241,124

1785 to 1793, — 8 ii67,833 356,979

These charges arifing principally in the ordinary courfc
of the Company's trade, fupport no inconfiderable part of
the navigation of this country, and maintain a great num-
ber of its inhabitants, employed, in various fituations, to
manage their commercial and other concerns.*

After

* As thcfe obfervation* relate particularly to the Company's trade, we have not

adverted to that part of the trade to India and China, which is carried on by the

Commanders and Officers of fliipson a proportion of tonn-.ije allowed by the Company.

Individuals, in India, alfohavc been admitted to fend goods to Britain on paying cer-

S t;iin

354

OF THE BRITISH GOVERNMENT

CHAP. in.
« — . — '

General in-
ference erta-
blifliing the
principle
upon which
the Britiflj
trade to the
E.ift-Indies
iliould be
condutfted.

After a review of the fafts and events accompanying the
rife, progrefs, and prefent ftate of the Eaft-India trade,
after eftablifliing, by evidence, that the China trade (of
which we are, at prefent, almofl in exclufive poflfeffion)
muft remain with the prefent Company ; and after having
proved that the India trade derives its fupport and its utihty
to the Public, from the fame credit which fupports that to
China; the inference is, that the prefent fyftem of Eaft-India
trade ought to remain, as the only one, which fads and
events have fhewn to be beneficial to the Public. If any
other Ihould be propofed or adopted, the balance of profit
arifmg from the whole of the Eaft-India trade, and the
benefits which Great Britain, at prefent, receives from it,
might pafs into the hands of foreign European Companies.

IV. The Go-
vernment for
Britifli India
muft accord
with the cha-

inj treaties.

Fourth. The Afiatic fuhjecls of Great Britain muji have a
government that is coincident ijcith tlxir characters and ufages, and
that accords nvith the treaties 'which the Eajl-India Company have
concluded with the native Princes and States in India. The
governments abroad muJi be Jo conjlituted as to prefcrve to Britain
rafters of the tjjg haUince of poiver in India; and the adminijlration of Indian

natives and ■/./ ■• r >

<vithfubrift. affairs at home ejlablijioed upon principles conformable to the
fpirit of the conftitution,

tain rates of freight. The exports of Britifli inaaufaftures, &c. to India and China,
in this private trade, is eftimated to be nearly equal, in value, to the Company's ex-
ports, as before ftated ; but the amount cannot be afccrtained. The goods imported
from India and China, in this manner, and fold at the Company's fales, befides thofe
fold on their own account, ftated in page 296, amounted, on an average.

From 1762 to 1767 — ^ ^'•184,315 per annum.

1767 to :777 — — 170.3' +

1777 to 1785 — — ^10,520

1785 to J793 — — — 7SS'757

Whoever

AND TRADE IN THE EAST INDIES. 335

Whoever has fludied the hlftory of civil fociety, mud chap. 111.
have obfervcd, that there is a kind of government which is niuftrations
adapted to the particular chara61ers of a people. In early H°ftory or
ages, it generally confifts -of a few fimple rules, which ^'"'^°°^^^'^-
accidents and events have di61ated and brought into prac-
tice. Thcfe rules commonly go no farther, than to point
out the power of the governing and the duties of the
governed ; that is, of the civil and military officers and of
the fubjedts. Thefe diftindions are, however, peculiar
and local, and, in fa6t, are, according to circumftances,
nothing more than the employment of reafon and expe-
rience, to form fuch rules for the fafety and proteftion of a
people, as their fituation requires. The mofl: wife nations
have, therefore, been fatisfied, that this is the only philo-
fophy that is pra6licable in a6tual life, and have always
prefered improvements on eftabliilied government, and
laws, to refinements which are as impracticable as they have
proved ruinous. Hence the univerfal method of corre6ting
ufages and cuftoms, infl:ead of introducing extravagant
fchemes. The Greek Lcgiflators improved on the ufages of
their country, and only reduced its laws to order, or to a
written fyftem. The Romans, when they imitated the
Greeks in their jurifprudence, only methodized their own
laws, by reducing them to the fixed and fimple principles of
the Greeks. TheLegiflators, in neither of thefe nations, fup-r
pofed, that the people for whom they afted could lay afide
their prejudices, or that they could lay afide their own. Uto-
pian fchemes uniformly have produced anaixhy, and, in no
inftance, could they be more dangeroufly attempted, than in
forming a plan of government for the dominions of Great
Britain in Hindooflan*

CIIAF. III.
< — -,, '

Ancient ^o-
vnnniem of
Lidia monar-
chical.

OF THE BRITISH GOVERNMENT

In the hiftory of India ^ve diicover, that the inhahitants
(in ancient times) were fubjected to Chiefs, who had
the power of leading them into the field, but who evi-
dently muft liave been controuled by the mild fuperftition
and manners, which uniformly have prevailed in that happy
climate. We are not able otherwife to account for the im-
proved ftate of the arts fubfervient to utility and to luxury,
in the early ages of that people, or to explain the progrefs
of their raanufaclurcs of every kind, which made Hindooftan
fo tempting an object of invafion to its barbarous neighbours.

Became more
ablblute on
the clkbhfii-
meiit of the
Mogul em-
pire,—

The term barbarous may, with propriety, be applied to
the Perfian, Afghaniftan, and firft Mogul conquerors,
whofe original object was to colle6l plunder, and carry off
flaves to labour for them, in the countries from whence
their armies had iffued. The latter Mahomedan conquerors
were actuated by different motives; the eftablilhment of a
feat of empire, and the promulgation of a new fuperftition.
If Timur relinquilhed the greateft part of his Indian con-
quefts, he laid the foundation for the re-afTumption of them
by his defccndant Baber. This Emperor, after he had
fixed the feat of his empire at Delhi, and introduced a
military force to overawe the vanquished Hindoos, and to
compel them to embrace the Mahomedan faith, eflablillied
a government that was abfolute in its fpirit, and fevere and
perfecuting in its practice. Hence the confufions which
took place during the reigns of his immediate fuccefTors ;
and hence the value and importance of the wife and mild

ijiftitutions,

AND TRADE IN THE EAST INDIES.

337

inftltutions, which, diftinguifhed the reign of the virtuous CHAP, iii .
Acbar.

Still, however, the government of the Mocruls was — a"^, ^'ii

. r . Ill- 1 more fo when

abfolute, and from its bemg periecutmg, held m abhorrence the Mogul
by the Hindoos. The Moguls had now become Sovereign fookTr^gu*.
Lords, or Lords Proprietors of the foil, and though in many ^^i^fo™*
inftances they continued, its ancient mafters, yet as fupe-
riors, they frequently exercifed the power of remoying them.
It was tb preferve this prerogative that they entrufted
the armies, in the different divifions of the Empire, to
foldiers of fortune, attached to them from intereft and re-
fembhng them in ambition. Under adventurers of this
defcription, they commonly placed new adventurers, as fe-
conds in command ; who, from the hope of fuccceding to
the principal truft, became fpies on their immediate fupe-
riors, and were ready by fecret, or by open means, upon a
hint, or a mandate from the Sovereign, to imprifon, or to
put them to death. A fyflem of obedience was thus infufed
into the army, and it had the tendency to ftrengthen alle-
giance to the Mogul.

It has already been obferved, that the Moguls frequently -phc fnintof
allowed the Raiahs, or Hindoo Princes, to retain a dep;rec of '^'^ Mogul

... . . government

foverignty in their diftridts, upon their becoming bound to f^^''f«4 to the
pay a larger tribute than the Mahomedan Officers could have the depcn-
levied. The government of thefe Rajahs, from this circum- ^'^ i"""^"''
fiance, became more abfolute than it had anciently been, when
they were independent chiefs, though they a^ted as officers of

X X a Sove*

338 OF THE BRITISH GOVERNMENT

ciiAr. III.

y a Sovereign, who was able to crufli them, in any attempt
to rcfift his power.

Had Acbar defined the principle of fucceflion to tlie Mo-
gul throne ; the civil wars among his defcendants, which
difturbed the reigns of Jehanguire, Shah Jehan, and even
Aurungzebe, would probably never have taken place. It
was this error which contributed to the fubverfion of the
empire, for it gave opportunities to the native Hindoo
ftates, on the Malabar fide of India, and to the north of
Delhi, to aflert and to eilablifli their independence.

th« empire —

—continued When thc Mogul cmpirc fell, and the new fove-

atter the . . . ° '■ ^ ^

fubverfion of rcigutics which, at prefent exift in India, arofe out of
its ruins, the government became flill more abfolute in
its chara61er than it had been, even, under Aurungzebe.
The officers who ufurped power in the provinces, in which
the Britifh dominions are fituated, being thcmfelves ad-
venturers, had no other refource but that of a continued
oppreffion of their new fubjedls. Their example encou-
raged the Mahrattah ftates, though they retained a miKler
fyilem of internal adminiftration, to exercife a power that
was ablolute, in the countries which they fubdued, Sevajee,
who firft aflerted, and Sambajee who eftablilhed the in-
dependence of the Mahrattahs, were as ablolute, in their cha-
racters, as Aurungzebe, or the Nizam-ul-Muluck had been
in theirs.

AND TRADE IN THE EAST INDIES. 339

So general had the fpirit for ufurpation become, both in CHA P, iir.
thofe provinces which had . compofed the Mogul empire, — becamcftiit
and in thofe countries which had never been wholly fob- i^teu"der"tiie
jugated by the Moguls, that in the lliort fpace of fifty uWcr**
years after the death of Aurungzcbe, there fcarcely re-
mained, in the whole of the peninfula, a fmgle defcendant
either of the firft Mahomedan, or Hindoo ufurpcrs, fo-
vereigns in the countries, over which their fathers had
ruled. The Deccan Avas torn from the family of the
Nizam, and divided among a number of nev/ adventurers.
Aliverdi and the Vizier of Oude, divided the central pro-
vinces ; and, in their turn, their defcendants were de-
graded or rendered tributaries. The Mahrattah and Myfors
Rajahs, in like manner, became the prifoners and political
engines of their minifters, while the reprefentative of the
houfe of Timur was forced to fly to the camp of the Euro-
pean ftrangers, there to feek protection again ft his own
rebellious officers, though ftill ruling in his name.

There can, therefore, be no queftlon, but that, from ^"ference
the earlieft times, the natives of Hindooltan have been ha- Tiewofgo-
bituatcd to a government, lefs or more abfolute, and that tiiTdoXn!*
an inftitution, of any other defcription, would be repugnant
to their notions of fubordination, and to the kinds of re-
ligion in which they believe, fo that, relatively to them, it
would be foreign and unintelligible. The internal

admipillniti-
on of the cm-

The internal arrangements of the Mociul empire an- ^"■'=' <^"'"'-■'•

/..,.„ ^ ^ ^ u-iu null the

pear, from its hiltory, to have taken the fame arbitrary chamdcr of

X z characters,

lucnt.

340 OF THE BRITISH GOVERNMENT

CHAP . III. characSlers, with the general fpirit of the government. Acbar
divided the empire into foubahs or provinces ; fixed the
quantum of revenue, and the quota of troops to be fur-
niflied by each; he made the Soubahdars, his Viceroys,
and gave them abfolute power in every thing but what
regarded the collection of the revenues. This duty was
afligned to the Duan, whofe oflice it was to collect and
remit the revenues to Delhi. As the Duan thus divided the
power .with the Soubahdar, the animofities of thcfe officers
either ruined the one or the other, or their agreement dou-
bled the oppreffion upon the inhabitants : The Duan, from
his office, was intended to be a check upon the S;)ubahdar,
or an honorable fpy of the Court : hence the fource of a
two-fold fpecies of oppreffion ; the Duan levied more money
than the flipulated revenues, and fecretly paid the Sou-
bahdar for winking at his extortions ; and the Soubahdar
levied contributions on thofe articles which were not taxed
by the Mogul. Each thus purfued his own meafures, that
each might be able to bribe the Court for a prolongation
of his power, and fecretly to attach to himfelf foldiers of
fortune, who, in the event of its frowns, might awe it into
compliance.

—was more
rigid in the
pro'. i .ces

Nor was this fyflem confined to the Soubahdars and Duans
only, for it was pradil'ed by the Nabobs and Hindoo Rajahs
fc^toit^- (^^'ho had been continued fuperiors of their diftricfls) not only
P''«- with refpect to the Soubahdar, who had appointed them,

but with refpe6l to their own officers, that they might ac-
quire fums fufficient to influence the Vizier, or Prime Minifler,
4 at

ANDTRADEINTHEEASTINDIES. 341

at Delhi, for a proteclion and a licence to levy fmall addi- CHAP. III ,
tional taxes, but which on that account, were more bur-
deniome. In the fame manner, the Naib-Nabobs, and Na'b-
Rajahs, fuperiors often of only a few Purgunnahs, and the
Zemindars, or fnneriors of a few farms of thofe Purgunnahs,
bribed, opprcffed, became rich, and often independant.

The laws of any countiy are only regulations, deduced The judicial
from the fpirit of the eftablifhed government. The laws corded with
which prevailed in Hindooflan Avere, of courfe, arbitrary in ll^ govern-
their fpirit, and frequently partial and corrupt in their appli- ""^'^''
cation. The fimple and equitable maxims of the Hindoo
code of laws, and the apparently rigid Mahomedan jurifpru-
dence, would, at firft fight, lead us to fuppofe, that the dif-
tribution of juflice in India had been equitable or ftern ;
but in the amials of that countiy, we difcover the courts of
law pronouncing dccifions, in almoft every cafe, in favor of
the party who could buy them ; and the natives entertaining-
no other idea-^, ingoing to a court of la^v, but thofe of being
fupported by the friends thf y had bought, under the fpecious
refinement of giving prefents, to mark their refpedl for the
Judge. The only exception, perhaps, was, in ca^'es where
the rel'gious cuitoms of the country flood in oppofition to the
pra6tice of thefe baffed or cormpt proceedings.

The revenues of the country, wh'ch confined In the rents —Andthefi-
of lands, in a heavy taxation on the Hindoos, and in arbi- "em"vi'th^'*
trary impofts upon indullry, were levied, :ndeed, according to ^°'^'
fixed aflefTmcnts, but always by means of an irregular armed

foice ;

345

OF THE BRITISH GOVERNMENT

ciTAP. iir. fo;-ce . this miliiia the Son'^rrhdar led aj-ainn: the Nabob"? or
■ ...

R;:jahs,^\hohad been backward in their payment?; and th.y,

in rhcir tiim, aga!r.(l their inferiors. Evciy Zemndcr had a

band of fuldicrs, proportioned to the txrent of the dirtr 61 he

fuperintcnded ; and, as he ^\•as ahb a k"nd of mag'ilra^e, and

often a6ted as an officer of police, as well as a collector of

revenue, he was, in faft, a fpecies of petty Prince.

The general fpirit thus of the government, was not only
arbitrar}'-, but, in the adminiftration of its offices, it refembled
more a militar}' than a ci\'il inftitution.

TheF.aft- If fuch was the fituatioH of Hindooflan, both when the

pany acquit- Eaft-hidia Company began to purchafe their feats of trade,
e<3 their tci- y,[i\-^ narrow diftri(5ls around them, and after the acquifition

nrories, as '■

the officers of cxttnfive provinccs, it is evident, that their titles were
thcieabfo- fouuded on agreements and treaties W'ith the eflablifhed
unccs. pQ^^.j^j-g . that they acceded to the ufurpations of the Soubah-
dars. Nabobs, and Rajahs ; and that, in fact (taking in
the general tenor of all the treaties with the country powers,
the Sunnuds which they obtained from them, and the
Phirmaunds, which they purchafed or extorted from the
fallen Mogul), they have engrafted only die portion of the
Britifli Government, which had been delegated to them,
within their limits, upon the Mogul fyflem, and yet have
pledged the faith of the Britiih nation, as its reprefentatives
in India, to become, in the Bengal Provinces, the Duans of
the Mogul, and in thofe on the- Coromandcl Coaft, his
officers.

A SOVE-

AND TRADE IN THE EAST INDIES. S43

A SOVEREIGN may refufe to ratify the deed of his Am- chap, iir .
baffador, becaufe he may fay his agent has exceeded the Britain can-
powers entiaifted to him. If, however, after a treaty has "iftjncy'with
been ratified by a Sovereign, he fhall refufe to abide by the ''u*'^'!^'"^

JO' J treaties, le-

tcrms upon which it proceeded, he violates the great prlnci- ccJe from

tills tenure*

pies of national law, viz. Public Juftice and Public Faith.
The cale is flronger even than this, between Great Britain
and the native Princes of Hindooftan : for, in the firft place,
the powers given to the Eafl-India Company, were greater
than thofe given to an Ambaffador ; and, in the next place,
the people with whom the Company entered into treaties,
had no other idea of the Company's power, than that of the
Britilh nation. Great Britain thus, in fa6l, though not in
name, has contrafted, in the moft folemn manner, with the
country powers. In fome cafes, we hold our territories of
Nabobs, Rajahs, and Soubahdars ; in other cafes, we have
obtained them by becoming the officers of thefe Chiefs;
and, in others, have held them dirc6lly of the fallen
Mogul. In the firft of thefe cafes, judging by the notions
of public honor entertained in the countries where the trea-
ties have been concluded (and this is the fole criterion). Great
Britain holds by a lefs ; in the fecond and laft, by a wort*
defined tenure.

By the political fy ft em of Hindooftan, Great Britain might
fet afide the tenures from Soubahdars, Nabobs, &c. and
obtain from the Mogul himlclf, a Phirmaund, by treaty or
by arms, and hold its pofllfllons immediately of him \. but»
in the firft place, we have made treaties ^ith thefe fubordi-

3 iiate

;44

OF THE BRITISH GOVERNMENT

CH.\P. III. nate Princes ; in the next, the ufurpcrs who portioned out
the Mogul dominions, pofTefled the only power to give
grants ; and, in the lafl: place, the defcendants of the Mo-
guls have as few rights to confer, as the Rajahs of Poonah
and Myfore now poffefs.

—But muft,
on the biilis
of national
faith and
expediency,
coatinuc it.

As the Britifli pofTcflions then have been conveyed to the
Company by treaties with ihe countiy powers and with the
Mogul ; and as thefc treaties alone are intelligible to our
Afiatic fubjefts, who hitherto have viewed us as the officers
or reprefcntatives of their fallen Sovereigns, and ftill confider
us as proceeding upon Ibmething like their ancient lyflem of
government, we can only expe6l to preferve the allegiance
of the natives, or to hold the balance of power in India,
by conforming to the treaties w'hich we have made ; — trea-
ties, from which we have acquired, and, at the prelent mo«
ment, hold our poffelTions. The ufages and manners of the
people require this from us as a law of nations, deviations
from it would not be underftood by them, more particularly,
if we were to infringe on cuftoms which they underftand
and venerate.

Difficulty of
engrafting
dillant Pro-
vinces, iipoQ
a free con-
ilitution.

It becomes, however, a nice political queflion, by what
method can dominions thus acquired, and thus to be held,
be rendered ufeful to the Britilh empire ? When we come
to fubmit propofitions on this branch of Indian affairs, this
fubje6t will be found to require much political difcuffion.
A diftant province may be cafily incorporated with an ablo-
lute government, for it is only adding to its power and re-

fources ;

AND TRADE IN T f I R EAST INDIES. 345

fources ; but to engraft a remote dependency upon a free cha p, hi .
government like Britain, requires a delegation of po^^'er,
which feems to be incompatible with its fpirit, and which
uniformly becomes a fource of jealoufy in itfelf, and in the
exercife of it. The more alive the fubjedts of a free govern-
ment are to the value of the conftitution ^\■hich they them-
felves enjoy, the more unguarded do they become, in their
fpecidation, about extending the privileges of it to the dif-
tant dependencies on their power. The political characters
of the center, and of the extremities of an empire, are
different and di(liu6t fubje6ls. The privileges, which are
the A itals of the one, would, if conveyed to the other,
iieceflarily cut afundcr the connexion. Rome retained its
Icgiflative and executive powers, and only gave its protection
and its lav s to^ the provinces. Great Britain has acquired
provinces in the Peninfula of India, and its fovereignty in
them can only be preferved by extending the prote6lion, and
the laws of England to the fubjecls of the King (including the
Armenians and others who have been confidered as Britifli fub-
jecl:s) — by affording to the natives protection ; and, by introdu-
cing fuch improvements upon their laws, as their habits of
thinking, and of tranfa6ting with the Company, will allow.

To render then our Indian pofTefTions and the ti^ade con-,
ncdted with them an uleful part of the empire, and of its
refources, the governments abroad muft be vcfted in
oflkers, with full, prompt and difcretionary powers. With.
Inch powers, their adminiftration Avill be underitood
by the natives, bccaufe refcmbling thofe which their

V y ancient

346 OF THE BRITISH GOVERNMENT

CHAT. III. ancient Soubahdars pofTefled ; in cxcrcifing them, an cafy
and open communication with the country Princes and
flates, on political or commercial fubjedls, may be maintained ;
and the balance of power in India, remain in the hands
of the Company, confidcred as a branch of the Mogul
empire.

It is, perhaps, a flill more difficult political arrangement
to fix the fourcc of this power in Britain, in fuch a man-
ner, that by its weight it may not deftroy the equilibrium
of the eftates of Parliament. The influence, which the
management of a rich domain might give to the executive
or legiflative powers fhould not exceed the proportion
which the one or the other ought to hold, by the fpirit of
the government ; for it would be as dangerous an extreme
to give the whole of the Indian patronage to the one, as
it would be unwife to afiign it, without controul, to the
other.

The example of the moft free nation of antiquity is fol-
lowed in the fyftem by which India, at prefent, is governed.
"Rome made its Proconfuls abfolute in the provinces, but
refponfible to the Senate and People. Britain, in like man-
ner, has made its Governor-general of India as abfolute, ap-
parently to the natives, as the ancient Soubahdars were, but
refponfible to the Dire6lors, and to the controuling power,
and both refponfible to Parhamcnt.

The

AND TRADE IN THE EAST INDIES. 347

The fyftcm then to be adopted for the future government chap, iil
of our Afiatic dominions, and regulation of our trade to the lleiuit.
Eaft-Indies, muft arife out of the chara£lers and ufages of the
people. It muft be modified by the treaties, which the Eaft-
India Company have concluded with the native Princes and
States ; and while we are to delegate a power that is prompt,
difcretionary, and fuited to the cafe, or to the adminiftratioii
of our interefts in India, we muft take care, that the exercife
of that power, fhall not be made the means of biafmg the
Legiflature ; nor, of conveying to the executive govern-
ment any degree of influence beyond that, which the fpirit
of the Britifli conftitution has afligned it.

Yyz

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH INDIA, &c.

P A R T II.

■I

CHAP. I.

PLAN OF GOVERNMENT FOR BRITISH INDIA, WITH THE
JUDICIAL, FINANCIAL AND MILITARY POWERS, REQUIRED
TO SUPPORT IT.

SECT. I.

OF THE PLAN OF GOVERNMENT REQjnRED FOR BRITISH INDIA.

CONTENTS.

^ejlions on which a Plan of Government for BrJttJJi India, feetns
to reft. — Fa5ls upon "which the Arfwers depend. — Refuit, point'
ing out the Propriety of renexving the Privilege of the Com-
pany. — Trade and Revenue to be granted for the fame
Period. — Plan of Government required under this Arrange-
ment; — Mufl accord with the Charadlers of our Afiatic Siib-
jeSiSj and with the Revenues they can pay. — AfpeSl of Go-
vernment in Hindoojlan, under the Moguls — Under the Sou-
bahdars. Nabobs, and Rajahs; — Utider the later Ufur per s ; —
Under the Eaf -India Company, when they acquired their
'Territories; — Under the fuccejjive Prefidencies. — Thefe Afpedls
of Subordination, in Hindoofan, require one Supreme Governor,
— who mufl be abfolute in the Opinion ' of the Natives, but re-
fponfible in Britain; — Should be the Reprefentative of the
Britifh Nation in India ; — but remain in the Nomination of
the Directors. — Bengal to continue- the Seat of Government,
Madras and Bombay to be Dependencies on it. — All the other
^ ' Settlements

352 OF THE BRITISH GOVERNMENT

Settlements to be Rcfidencies. — T^he Sekdl'ion of a MiUtiry or
Civil Gcvernor-gefieral and PreJiJents, to be in the Govern-
ment at Home. — Duties of the Governor general and Prefdciits.
— Reports to be made to him from the fubordinate Prefdencics,
•with his Powers cf judging and deciding on them. — Salary
of the Governor-general , ^c. — Offices and Duties of the Coun'
cils — Changes required in this Part of the Government. — The
Councils to be /elected from Company s Servants of twelve l^ears
flanditig. — Duties of the Members ofC'Mncil. — Divifon of the
A dminif ration among fepar ate Boards — Coiftitution and Duties
of the Board of Council. — Conjlitution atid Duties of the Board
of Revenue. — Cofijiitution and Duties of the Board of Trade. —
Confituiion and Duties of the Military Board. — Reports from
ihefe Boards to be made monthly ; — from the fubordinate Prefr
dencies quarterly., to be tranfmiiied to Britain.-' Office and
Duties of the Secretaries. — ^lejlion whether the foreign Govern-
ments fjonld have the Power to make temporary Regulations for
the internal Admiiif ration of the Provinces. — Refriciions under
which this Power ought to be placed, — RefriHions to be laid on
the Executive Power at Home, refpecling it. — Degrees of
it expedient in the fubordinate Pref dencies. — Conjlitution of the
Judicial, Financial and Military Pozvers required in the Brit if j
Dominions in India.

Having

AND TRADE IN THE EAST INDIE-S.

iriAVlNG brought into view principles, arifing out Queftlons.on
of the hiftory of Hindooftan, and of the Eaft-India of gtem-"'
Company, and fhewn, that from the nature of the cafe, ■"'^"jf"': Bii-

f. ^ t'fi India,

a fy Item of government for the Afiatic poffeflions of Great fecmstoreii.
Britain, in their connexion with the trade to the Eaft-In-
dies, mufl: neceflarily reft on them ; and having pointed out,
that the ftate has a right to difpofe both of the Eaft-India
poflefTions and trade, in the manner, that it may deem
moft advantageous for the Public intereft ; two queftions
neceftarily come forward, viz. Upon what plan is the
Legiflature to difpofe of this valuable branch of the empire
and of its refources ? And, fuppofmg it to veft them in
the Eaft-mdia Company, What fyftem of government
will be beft fuited to the prefervation and improvement of
both ?

When the Legiflature fliall examine the firft of thefe ^.^r^. ^. ,„
queftions, it will have to take into confideration the circum- "''''^'' ''*=

„ r 1-11 1- • 1 I • , . antwers ds«

nances rrom which the political and commercial princi- pend,
pies already treated of are obvious inferences, viz. That
land and induftry in the Brithh provinces in India, ought
to be afleffed and the revenues colledled upon a plan that
Ihall ftrcngthen the attachment in the natives to the Britifli
Government ; but that this plan ought to be calculared to
invigorate and more fully to eftablifti our Afiatic commerce.
Part II. Z z and

5S4

OF THE BRITISH GO\'ERNMENT

CHAP. I.
> . ^

and to render the provinces and trade a refourcc to the
Public: that the Company, by whom the territories have
been acquired, and the trade brought to its prcfent extent
and magnitude, fliould (if their exxlufivc privilege is to
ceafe and determine) be left in a fituation, after having the
debt due to them by the Public repaid or liquidated, to
recover the value of their home quick and dead flock, and
a compcnfation for their foreign dead ftock ; and that they
ihould be enabled to dilcharge all their lawful debts, and
to recover an equitable value for their proprietary flock.

^'^'^^'^',V^',*v!^'* Upon a general view of all the exiflincr circumflances, and

ing" out ine o o ^

propriety of of tlic confcGuences whicli might be experienced from any

renewing the , -^ , '-' ^ . , _ •'

pnviiege of alteration of the eftablillied fyflem of Indian affairs, it may
\iy. °'"^'^' be fit and expedient, that the Company's charter fliould be
renewed to them, under certain conditions and regulations
to be fpecified in the a6l, from which the prolongation of
their privileges is to proceed, and upon fuch terms as fliall
enable the Public to receive an equitable confideration for
the grant.

Trade and
revenue to
be granted
for the fame
period.

It is Impofhble to fay, with any precifion, to what num-
ber of years it may Jje expedient to extend the new exclufive
privilege of the Company; but it will be equitable in the
Public to grant, and in the Company to accept of fuch a term
as may, with proper management, enable the one to re-
alTume its right of difpoftng of the territorial poflefTions in
India, and the privileges of trade, at the expiration of that

period ;

,?3

AND TRADE IN THE EAST INDIES. 535

period ; and the other to imp^o^■e the revenues from the SECT. i.
territories, in fuch a manner, as to introduce and eftabhlli
under the eontroul of the executive power, (refponfiblc to
Parhament) a fyftem of finance, fuited to the nature of the
countries entruftcd to their adminiflration; and a fyftem of
trade vvhich fliall, progreffively, invigorate the domcftic
manufaflures and commerce of Great Britain.

For thefe purpofes it may become neceffary for Parlia-
ment to declare, that the territorial acquifitions of Great
Britain in the Eaft-Indies, with the re^'enues accruing from
them, iTiall remain with the Eaft-India Company, during
the term to be granted them of an exclufive privilege of trade.

Supposing that this fhould be the refolution of Parlia- P'^'^ °^ &'■*-

vernment re-

ment, the other queftion, refpecting the plan of government, quired unde

will call for equal deliberation and wifdom to rcfolve it. If

the privileges of the Company are to be continued to them,

Parliament will have to devife and prcfcribe a government

for our Indian provinces, fitted to preferve a valuable part

of the empire, and a not lefs valuable branch of our trade

and navigation.

A PLAN for Indian affairs muft neccfTarily be addrefTed
to thofe who have ftudied the fubjc6f, and to thofe who
have only taken a general view of it. To the former, many
parts of this work, as well as many of the regulations intro-
duced by the Diredor?,and in A6ls of Parliament, may apj^ear
unncccfTary repetitions. To the latter, thefe minute particu-

Part II. Z z 2 lars

tiiii urrange-
mciit.

356 OF THE BRITISH GOVERNMEXP

^ CHAP. I.^ lars may be of importance, as foundations upon which they
will have to reafou and to form their opinions. That we may
then meet the general objedls and wilhes of the nation^
reljiccting our Afiatic dominions and trade, we muft fuppofe
the fubject to be a new one, and bring forward the plan,
iQ detail, leaving the particular articles, regarding each-
branch, to be examined, adopted, or rejedcd, as the wifdom..
of Parliament may deem expedient.

—muft ac- The kind of government which fcems to be adapted to the.
chiS'rVS Britilh poffeffions in Hindooftan, mufl arife out of the
cur Aiiatic leading fa6ls in the hiftory of that country. It has been.

iubjerts, and .

with the found from experience, that, however perfe£l a fyftem of

revenues

they can govemmcnt may appear, in fpeculation, unlefs it ihall accord
'"^* with the manners and prejudices of the people for whom

it is intended, the attempt to reduce it to pradlice, haSt
uniformly met with oppofition, and frequently ended in.
the deftrudion of thofe who have endeavoured to eftablifh.
it. In every age, and among every people, opinion and
prejudices have been an overmatch for arms : hence, the,
moft wife Legiflators of antiquity found it expedient to ac-
commodate government to the ufages of a people, rather
than to attempt the accommodation of their ulages to.
a fyftem of fubordination^ though apparently more perfect
in its charader. The Britilh. government in India then
muft take its chara6ler from the kind of fubordination.
which the natives underftand, and to which they have
been habituated..

AND TRADE IN THE EAST INDIES. ^^y

It has appeared in illuftrating the principles out of which sect : t.

a fyftem for the foreign government of the Britifh provinces Afpedofo-o^

in India muft arife, that the Moguls eftabliflied their power Hi'.'^j"^"/^),''

bv force of arms, that their adminiftration was rather of a uiuierthe.

'.,. , -.., Ill • 1 Moguls^

mihtary than or a civil nature, and that they communicated to
their Soubahdars, or Governors of provinces, the fame abfolute
authority which they themlelves exercifed at the feat oi'
Government, without forefeeing, th^t they tlius laid the feeds
of decline, in the very trenches they had dug out for the
foundation of their empire. It has appeared, as the fruit of
this original error, that a Soubahdar, though, at firft, a
meer Commander, raifed by a Mogul to the government of
a province, often became a kind of Sovereign, on the one
hand, warding off, by bribes, or by an army of attached
followers, the danger of being removed from his fituation
by his Prince ; and, on the other, portioning out among his-
own immediate Officers, whether Mahomedans or Hindoos,,
diftrifts in his province, and by a fimilar tenure with his own.^
That thefe inferior Officers followed the fame fyftem, un-
dermined the power of the Soubahdar by whom they had been
appointed, or allowed to retain their ancient portion of
power; that by ftrcngthening themfelves in their refpe6live
diflri6ls, or by forming an intereft at Delhi, they frequently
counterbalanced the power of the Soubahdar,. though they
leaned on the fame center from which he had derived his
authority. In this way they became independent of him^
as he had done of the Emperor. In theirr turn, thefe Nabobs
(the term for Mahomedan Officers) and Rajahs (the term.
Part II. fot ■

JJ)'

OF THE BRITISH GOVERNMENT

CHAP, I. for Hindoo officers, continued the fuperiors of dilhidls), ikk

divided their authority, and by the fume rule, among theii"
Naibs, or deputies, and thus carried on a complicated lyflem
of oppreflion.

From the conquefts of the firll Moguls to the eftablifh-
ment of their empire, and from this period to its fall,
the government introduced and underftood in Hindooftan,
has been an abfolute monarchy, in which the Sovereign was
held to be, if not the Proprietor of the foil, (what was equi-
valent to it,) its Lord Superior, to whom the natives looked
up for prote6tion againft the arbitrary proceedings of Soubah-
dars. Nabobs or Rajahs ; or, to the Soubahdar, the Nabob
or the Rajah, when opprcfled by Zemindars, Talookdars, &c.

—Under the It has appeared in the next place, that the Soubahdars
Nabo'bsj and ^nd Nabobs, who became Sovereigns in the provinces, of
Rajahs. which they had formerly been Governors, embraced the

fame abfolute fpecies of fubordination with the Moguls
againft whom they had revolted, and whom they had de-
graded. That they continued to rule in the name of the
Mogul, though they had thrown off his authority, and
overturned his empire ; and that this line in politics, accorded
with the prejudices of the people from the fupport which
they gave to vicious and unprincipled rebels.

—Under the It has appeared, in the third place, that when the

cVs! '^ ^ firft ufurpers were degraded by others, the fame kind of

political chain had only new links added to it. The new

5 ufurper

AND TRADE IN THE EAST INDIES.

OJV

ufurper continued the name, firft of the old one, and next SEC T, i.^
of the degraded Mogul ; a proof, that even arms cannot
command the prejudices, though they may thefervices of the
vanquillied. Nor were the Hindoo States Icfs abfolute in
their principles and conduft. If the Nizam, and Aliverdi
dethroned and expelled the Mogul from the provinces of
which they had been Governors, they continued to rule in
his name, fo did the Peilhwah and Hyder Ally, the Rajahs
of the Mahrattahs and of My fore, and if thefe Rajahs really
live, the ufurpers rule in their names, though the unfor-
tunate chiefs are immured in the folitude of a prifon.

It has appeared, in the fourth place, that the firft Britilli —Under the

n 1 • 1 • 1 11 Eafl-lndia

conquerors were in cnxumitances, which induced them Company
to take the fame ground with the ufurpers who had pre- ac^uVed*^
ceded them. In this meafure, they indeed had no choice: '^'="■ tenito-

ncs.

for they knew, that the fudden panic in the natives, which
had yielded an cafy viftory to the Company's armies, would,
from the nature of that deprefling paflion, quickly eva-
porate : and that it was better to reconcile the natives to new
and foreign Mafters, by accommodating power to their in-
flitutions and habits of thinking, than to take from them
partialities, which human nature, on no occafion, has been
willing to relinquifh. To this forefight and to this poli-
tical wifdom in Lord Clive, Great Britain is more indebted
for its Afiatic dominions, than to his viiStory at Plafley.

It has appeared, in the laft place, that, after the Britith —Under the
powTr had been introduced, the divifionof authority among piemen cie,-.
Part II. the

6o OF THE BRITISH GOVERNMENT

CHAP. I. the Governors and Councils, not only was the fourcc of
wcakncfs and of want of energy in their adminiftration, but
of the corruption A\hich made and unmade Nabobs, for the
fole purpofe of accumulating fortunes to mercantile and
ambitious politicians. E\cn the fallen Mogul muft be
brought forward, and his name viedf as an authority, for
^anfiioning mealurcs, to which the natives were compelled
to fiibmit. Who were in the right, or in the wrong, in
paiticular cafes, is not now the queftion: but that the whole
( f the fyflem of go\ernment \vas wrong, even the par-
tial information which Parliament had then received, fuffi-
ciently evinced. Hence, the remedy which it wifely devifed,
of fixing the fupreme Government in Bengal, and render-
ing the Prefidencies of Madras and Bombay dependent upon
that government ; and hence, after fuller information had
been procured, the wifdom of rendering the Governor-
general independent of the Councils, and refponfible only
to the Dire6lors and to the State.

Thcfeafpeas From the kind of fubordination then, which prevailed,
"illi'l'^rn Hin- during the vigor of the Mogul empire ; from the imita-
dooftan, 1-c- ^.j^j^ (jf j.]^g Mogul policy, by the fucceffive ufurners in the

<liiirc one (u- . , ^ _ .

piemc Go- different provinces ; from the confufion which took place,
in the Brit^lli Prefidencies, in confequcnce of divided au-
thority among Go. crnors and Councils, from the forefight of
Parliament, in changing this fyftem, which might be pro-
per for a commercial Company, though not for a delegated
Sovereignty ; and, in fine, from the experience of the be-
neficial efFeds of placing the Provinces more immediately
? under

AND TRADE IN THE EAST INDIES. 361

under the coutroul of the executive government at home, sect. i.
it is demonftrative, that the plan of government for our
Eaftern poirelTions, is that of one fupreme Governor, who
fhall have full authority over all the provinces, afllfted by
fuch Councils as he may advife with; but without any right
in them to check the exercife of his power in India, for
which he is to be made refponfible in England.

The Governor-ffeneral fliould 'appear to the natives to 7~^Y|}° "'"^

° . ^ * . be abfolute

be abfolute, in the degree in which their Soubahdars were, in the opinion
though limited by the ufages which regulated thefe officers; but' refponfi-
and, to the Britilh fubjeds, ferving the Company, or refi- bieinSntain
ding under its protedlion, to have the lupreme power in India,
though refponfible in Britain. It would be dangerous,
with refpecl to the former, if we attempted to alter a fyftem
of government to which they look up for protection : we
have recently feen, in the downfal of the moit confolidated
and polifhed monarchy in Europe, the evils and fatal con-
fequences of innovation. It would be impolitic, with refpett
to the latter, becaufe it might again introduce thofe cabals
among the JVIembers of the different Councils, and thofe
unfair proceedings in trade, in India, which it has been the
objeft of Parliauicnt to correal, punifli and prevent.

The mode of civil government then, which the nature -.fiiouid be

of the cale, and which experience points out for India, is tadvc*^of th'

that of a F/ce-roj'j or Governor-General over all the fettlcments Bntiiii .wtiou

Part II. A a a and

OF THE BRITISH GOVERNMENT

and interefts of G:eat Britain in the Eaft-Inclies. It is,
at all times, much more wiie to found upon the bafis of
an old and eftablllhed fyftem, than to lubftitute, in its
place, the mcft plaufible but untried theory.

lii^'irinthe -^^ ^^^ Governor-general is, from his rank, both the re-

flominationof prefcntativc of the ancient Soubahdar of the Moguls, and
of His Majelty, it will be expedient that he mould be veiled
with the dignity, as well as with the Powers of office. Jn
this way his fituation will be accommodated to the ideas of
the natives, refpefting their Sovereigns, and, at the fame t'me
to the fpirit of the Britifli conftitution, which admits of
the delegation of fuch power to the reprefentatives of the
King, but makes them refponfiblc for the exercife of it.
The nomination, however, of the Governor -general and
Prefidents, may remain with the Company, a6ling with the
approbation and under the controul of the executive power.

Bengal to To prevcHt cvcry appearance of change which might

feaTorco-^ either unhinge the prefent foreign fyftem, or alarm the
Madra?Ind natives (fubjefts of Great Britain) or the Indian States and
Bombay to be Princes ill alliance with us, the prefent divifion of the
•/k? ^"'^'^ Prefidencies ought to be continued. Bengal, both from the
magnitude of our pofTeflions, in the center of India, and
from the eftablifhed pra6lice in public tranfa6lions with the
native States and Princes, ought to remain the feat of the
fupreme government. The Prefidencies of Madras and
Bombay, ought to continue fubordinate to it. The Go-
vernors of either fliould, in their particular fettlements, derive

their

AND TRADE IN THE EAST INDIES. 363

their appointment from the fame fource with the Governor- sect. i.
general, and under the Uke connexion with the executive
power. They fhouid be vefted with a fimilar authority in
their refpedive Prefidencies, with tiiat which the Governor-
general exercifes in Bengal, under the exception, that in fo far
as regards their adminiftration, they fhouid be underftood,
both by the natives and by the Britifh fubje6ts, to be under
the controul of the Governor-general, and amenable to him
for every part of their condud. This dependency of the
fubordinate Prefidencies upon the fupreme government,
cannot be rendered fo obvious to the natives, or fixed
in ifelf, as by continuing the late powers given to the
Governor-general, of being fupreme in any of the Company's
fettlements, in which the ftate of the public affairs may
require his prefence.

In the cafe of a vacancy happening in the oflSce of
Governor-general, (who is alfo Governor of the garrifon
of Fort William,) or in the office of Prefident and Go-
vernor of Fort St. George or of Bombay, thefe offices
ought to be fupplied by the Company, under the reftric-
tions already pointed out. His Majefty, however, as at pre-
fent, iliould have the power of recalling fuch Governors
or Prefidents, the recal being firfl fignified to the Court of
Dire6tors, by an inftrument in writing, under His Majefty's
fign manual, counter-figned by the Prefident of the Board
of Commiflioners for the affairs of India,

Part IT. Aaa 2 Experience

i^4

OF THE BRITISH GOVERNMENT

CHAP. I.

Experience has fhewn the inconvenicncy 6f having ia
All the other Prcfident and Council at Fort Marlborough in the Ifland
f -tticircnta to of Sumatra ; and that the adminiftration of affairs in India

be relidcc-

eies. has been fimplified, by reducing it to be a Refidency, de-

pending upon Fort William. Confiderahle faving has
been made in the cxpenfes of maintaining it, as a Refi-
dency only. It ought therefore to remain in this fubor-
dinate fituation, and in cafe of any new eftabliflimcnts
being made within the Company's limits, they lliould be
rcfidencies only, fubje6l (according to local fituation and
other accidental and expedient circumftances) either to
the Bengal, or the Madras, or the Bombay prefiden-
cies.

Thefcieftion To prevent, as much as pofTible, jealoufies or difputes

or ci'vilGo^ from arifmg between the civil and military power, it ought

Jai'nnJ Prefi- *° ^® ^^^' *° ^^^ Government, at home, to confer the ap-

dents, to be pojntments of Governor-general and Commander in Chief, or

111 the JJO- "^

vernmciitat Prcfidcnts and Commandcrs in Chief, in the fubordinate
fettlcments, on the fame or on different perfons, as circum-
ftances may rec^uirc the union or feparation of their duties.
There ^^'as nothing which, during the firft period of our
power in India, appeared more unintelligible to the na-
tives, than that an officer, at the head of an army, could,
be controuled by, or could pay obedience to a Civil Gover-
nor. Both, therefore, on account of the prejudices of the
natives,, and to prevent jealoufies or embarraffments in the
fervice, it may be proper, at one time, that the Governor-
's general.

AND TRADE IN THE EAST INDIES. 365

general fliould alfo be a military officer, and one of reputa- sect, i-
tion and of experience; at another time, as events may oc-
cur, a Civil Officer, whofe knowledge and local experience
may point him out to be the moft proper perfon upon
fuch an oecafion. The executive refponfible government,
at home, can alone judge of thefe occafions. In the event,.
however, of a Civil Governor-general being appointed,,
the Commander in Chief ought to be held refponfible only>,
for the execution of the orders he may receive from his fu-
perior, the Civil Governor.

Though the duties of the Governor-general, and Prefi- p^,-, ^^ ^j^^
dents of the fubordinate fettlements, have been pointed ^"vcmor-

S^encrul ;ii)d

Gutbythea6t 1784, and more fully defined by fubiequent PaiiJcuts.-
a6ts, and by the arrangements introduced by the Commii-
fioners for the affairs of India, it will be proper to ex-
plain them in detail, as the firft and moft important branch
of this plan. The duties of the Governor-general and fub-
ordinate Prefidents, ought to confift in receiving and anfwer-
ins: all letters from the Dire6lors and from the executive go-
"vernment at home. In matters of a public concern, the
Governor-general fhould continue to addrefs his letters to-
the Secret Committee, and in matters of a commercial nature,
to the Chairman of the Court of Diretlors. In either cafe,
the Court ought to be bound, forthwith, to comaiunicate-
the contents to the CommilTioners for the affairs of India.
This arrangement has had the effedl of rcnderins; the Com-
miffioners more pofitively refponfible to Parliament, and the
Part UL Dircc-

366 OF THE BRITISH GO VFRNMENT

CHAP. I. Directors to the Proprietors. The Governor-general, asPre-
fident of the Supreme Council, ought to ha\ e the power of
conl'ulting with the Members of Council, and of ordering
the confultations to be engroffed and reported. He is to
fummon Councils, at fpecified times, as public or com-
mercial bufinefs may require He is to lay before the
Council reports from the fubordinate Boards, and, in
fine, whatever matters of expediency he may think require
their advice and afliftance. He is to have the option, how-
ever, of deciding for himfelf, or of deciding by the majority
of voices in the Council; but, in both cafes, he alone is to
berefponfible. He is to have the right of afTigning his rea-
fon=, or not, to the Council, for whatever opinion he may
adopt; and, if he think it expedient, he may order the
opinions of the Members of Council, firff, to be reduced to
writing, next, to be recorded, and, laftly, to be fent
home with his own decifion. He is not to be obliged to
difclofe the reafons of his opinion to the Council, farther
than may be neceflary for carrying the bufinefs, upon which
it is formed, into execution. He is, however, in all cafes, m
to communicate it to the D^edlors and to the Executive ™
Government at home. He is always to prefide in the
publx department, whether, when it is judging of the
reports from the different ftations in the Prefidency, under
his immediate charge, of the intelligence he may receive
from the Refidcnts at the Courts of the countn- powers, or
of the interferences which the Britifli nation may have in
India with the European Powers. g;

- From

AND TRADE IN THE EAST INDIES. 567

JFrom the fupremacy of the government of Bengal, all sec t, i.^

reports refpe<Sling th^ n-.eafures adopted, or propo.'ed to be Reports tobe

adopted, in the iubordinate Frefidencies of Madras or Bo;n- ^^m die^d^b-

bay, are to be made to him. In fuch cafes, he is to difciofe ordinate I'l-c-

the contents or the difpatch to the Council, and to require withhispow-

J.-1. ■ • • ^1 1 , r 1 • r ni ■ cre of judging

their opmions on them ; but, on account of his refponfibi- a id deciding^
lity, he is to be left at liberty to form a refolution for him- °" ''^^"'
felf, and to explain his realons, or not, to the Council, as
he may think it expedient He is always to fend home,
with fuch decifions, copies of the correlpondence, with the
fubordinate Prefidencies, as well as copies of the recorded
opinions of the Council, on the lubjc6ls of them, that the
Dircflors and the executive government may have the
fulleiL information refpcv^ling the meafure uhich has been
adopted. That the whole bufmefs maybe as much in unifon
as pofTible, he is to tranfmit alfo a copy of his own decifion,
not only as fent to the Prefidency which had applied for it,.
but to the other Prefidency, with his order for its conforming
to his commands, in fuch manner as Ihall the moft effectually
fecure the execution of them. In cafes where it may
be of advantage to have the opinion of the natives, on any
matter, either of politics or of commerce, it has been re-
commended, that the Governor-general fliould have the
power of calling upon fuch of the natives, as may have been
ufeful to the Britifli nation, and of giving them fuch allow-
ances, as the nature of the fervice may require, or of con-
ferring on them fuch honors or titles, as may tend more effec-
tually to enfurc their allegiance.

Part II. The

56S . OF THE BRITISH GOVERNMENT

CHAr. i.^ The falary of the Governor-general may be fixed, as at

S;.iaiy cf ihc prcfcnt, Ht j^.25,ooo per annum. He is to take the oath of
*^encrar'i;c fi'-^^l^^y* ^"'■^ againft receiving prefcnts or gratuities, eli-
rettly or indirectly. Tn cafe of a breach of either oach,
he is to be liable for a mifdemcanor, and punilhable bv the
Committee of Parliament, appointed for trying Indian delin-
quents. The evidence may f\v([ be taken in India, and next,
tranfmitted by the fupreme Court of Judicature to Britain,
that the accufed may be brought to trial within a fpeci-
ficd time.

o.r;c« and Having thus defined the rank and duties of the Gover-
CouHtUs, nor-gcncral and of the Prefidents of fubordinate fettlements,
it will next be neceffary to defcribe, the offices and duties of
the Councils ; it being always underftood, that the powers
given to the fupreme Council for Bengal (allowing for dif-
ference of circumftances), are the lame \\hich are to be
exercifed by the Councils in the fubordinate Prefidencies.

Chanjrcs re- SEVERAL circumflanccs, which experience has pointed
qiurcdintins j. ^^.-jj j-^j^jp^- [^ expedient to make fome changes in this

p.-.Tt or the '1 -J

government, branch of the government. In the firft place, the politi-
cal fituation of India, fince Great Britain became pof-
felTcd of territorial dominion?, requires, that the Councils
fliould be compofcd of men converfant in public affairs, as
well as in Afiatic commerce. Neither the fpecies of educa-
tion, which many of the Company's writers may have
received, nor the opportunities of improvement, which
their fubfcquent habits of bufinefs may have afforded them,

can.

AND TRADE IN THE EAST INDIES. 371

can, in many cafes, qualify tliem (if fiiccefllon is to pro- sect. i.
ceeJ.by knioiity alone) to judge 'of the political interefts of
India, or of the conneclion which now fubfills between Great
Britain, as an Afiatic power, and the European nations
having commercial and political interefts in the Eaft. It is
ncceffary, therefore, that the Council (hall be compofcd of
men fully qualified for their ftation, and not made up
of thofe, to whom the accident of feniority, in the Com-
pany's fervice, might aflign a feat in it. Seniority furely
cannot form the Financier, nor the Statefman : both of
thcfe characters however muft be found in the Councils of
our Afiatic Prefidencies, to which the Governor-general
or the Prefjdents are to refort for advice in his or in
their adminiftration. Such characters may have arifen
■among the Members of the fucceilive Councils in India;
hut thefe events can have no weight in the formation of a
fyftem, an4 can only be confidered as contingent or fortu-
nate. In the next place, it is evident, that no Council can
be properly compofed, without including in it Members, who
have had long praftice and local experience in India, both
in the novel fubje£l of Indian politics and in the fingular
one of trade conne6led with the revenue. On this
accc'Unt, the Directors, in concert with the Executive Go-
vernment at home, ought to have the power of feleCting
Members for the different Councils, from the Company's
fervants, of twelve years ftanding and employment in the
country.

Part II. B b b That

37-

OF THE BRITISH GOVERNMENT

CHAP. I. That the conftitution of tlic Councils may embrace the
TheCoun- whoIc of thcfc iclcas, it ought to confifl of a fpecified num-
ciis to be fc- Ij^j. Qf Members, befules the Governor-ffeneral. They

Iccttd from _ ° ■'

Company's ought, ffom thc iiatuTC of their daties (to be immediately

fervams of , . . , . i • i • ■ r ^ -r^.- n

twelve years dcicnbcd), to Lc 111 the nomination or the Directors,
an i"s- ailing in concert wi;h the executive power, and feleded from
fuch of the Company's fervants as may be judged the beft in-
flrueled in thc politics and commerce of Europe and of
India. It may be proper that they ihould have been twelve
years refident in the fettlement to which they are appointed.
The pover of recalling them ought to proceed upon the fame
principle with that of recalling Governors or Prcfidents.

Duties of the fjjg ^mies and offices of the Members of Council fhould

Members oi

Council. be as follows. They ought to alfifl the Governor-general,
or Prefidents, with their advice, and to fanclion the reports
from the fubordinate Boards, in the manner that {hall be
immediately pointed out ; they ought to fliare in all the
fun6lions of the executive government, whether in matters
of political concern, in thediftribution of juftice as members
of the Nizamut Adawlet, &c. in the regulation of police, or
in the diie(?lion of commerce; and in whatever cafes the
Governor-general, or Prefidents, exercifing the executive
power, may require their afliftancc.

Dlvlfion of Supposing the Governors and Councils to be eflabliflied

the Adininif- i • i t i ^ /-

tratloa upon this plan, the bufinefs ought to be conduced (as at

rate^ilLuds! prcfent) by four difl:in6t boards; the Board of Council, the

Beard of Revenue, the Board of Trade j and the Military Board,

I. The

AND TRADE IxN THE EAST INDIES. 373

I. The Board of Council ought to confift of the Go- sect. I.
vcrnor-general, and the Members of Council : to this Conftiuitiou
Board ha^'e been affio;ncd thoie branches of bufincfs, which ■'^"'^ 'jl"'"-? "f

t> ' the lioanl of

are comprehended under the general title of the Public Council.
Department, viz. the correfpondence with the Directors and
with the Secret Committee ; the correfpondence with the
fubordinate Prefidencies ; the examining and judging of
all plans that may regard the internal adminiftration of
the provinces, whether fuch as relate to the condu6l of
civil or military officers, the improvements or altera-
tions required in matters of taxation, the employment
of the army, or the eftablilliment and diredtion of the
police.

2. The Board of Revenue ought to be compofcd of that Couftitution

•^ . " ^ ^"d duties of

Member of Council, as its Prefident, who has been feledted the i^oard of
from among the Company's fervants, on account of his
local knowledge and experience ; fuch Prefident fhould al-
ways be one of the Company's fervants who has been
trained in this particular department or been employed in
it, at leafl, twelve years. He ought to be made refponfi-
ble to the Governor-general for whatever mcafures he niay
advife, or whatever orders he may give to the civil fervants
placed under him, in the various delegations of his trull. He
ought to examine and fanction the reports from the fupcrin-
tendents of the different diftridls, rcfpedling all matters of re-
venue that come immediately under his diredtionandcontroul.
In the difcharge of this office, he ought to be affifted by the
Part II. B b b 3 Receiver-

evcnue.

oi-

OF THE B R I T 1 S H G O V E R N M E N r

'i'raJe.

Conftiuition 4. TiiE M'llitary Board ought to be compofed of the Com-
fhe Mlutaor mandcr in Chief (even fuppofing him to be the Governor-
Bomi. general)

CHAP. I. Rcceiver-cicncral of land rents, the Colle6lor-2;eneral of
-cuftoms, and the CoUedor-general of inland duties.
Each Member of this Revenue Board (it fhould be un-
dcrltood) is to be refponfible to it, in the firft inftance,
for the management of that particular branch of the bufmefs^
^vhich is more immediately committed to his charge.

Conftitution 3. The Board of Trade ought to be compofed of that
t'he Board of Member of Council, as its Prefident, who has been appointed, *

''''^''' to this department on account of his capacity and expe-

rience in commercial affairs. It has already been fpecifi'ed, ^

that he ought to be of twelve years ftanding in the fervice ;
perhaps it may be expedient, that his (landing lliould be
in this particular line. He Ihould be affifted by a number
of fenior fervants correfponding to the commercial refi-
dencies in the fettlement. Each of the Members of this
Board {liould have the charge (in fubfervience, however,
to the orders of. its Prefident) of that part of the bufinefs \

which, in his quality of Refident or Fa6lor, had formerly \

been under his direftion ; and, in a particular manner,
ought to be refponfible for the fales, of imports from Eu-
rope ; for the quality and price of the goods provided in
India; for the home or foreign markets; and, in general,
for every thing that relates to the commercial interefts of
the Company.

AND TRADE IN THE EAST INDIES. S75

general) the fecond in command ; the Chief Engineer ; SECT. I. ^
and the Commandant of Artillery. Each Member ought
to have the duty of managing and reporting to the
Board, that part of the bufmefs of the army for which
he is profeffionally quahfied : that is to fay, the Com-
mander in Chief (hould dired in all matters relating to
the general conftitution and ftate of the Company's Eu-
ropean, or Native troops. It, perhaps, might not be im-
proper to affign, to the fecond in command, the more im-
mediate fuperintcndence of the native Sepoy corps : to the
Chief Engineer all matters regarding fortifications, military
roads, &c. and to the Commandant of Artillery, whatever
relates to the military ftores, &c. required in that impor-
tant part of the fervice in which his corps is more imme-
diately called to aft.

It might be proper that the reports of thefe Boards, Reports from-
fisned by their Prefidcnt, fhould be made monthly in ''"=''^ Boards

t3 J ' . ■' -^ to be ni;ule

Bengal, to the Governor-general, in the fubordinate fet- monthly;
tlements to their refpe6tive Governors; that each, upon
taking a review of the whole bufmefs in his particular fet-
tlement, might be enabled to adopt meafures calculated to
promote the commercial and political intercft of the Com-
pany.

The Prefidents of the fubordinate fettlcments 0U2;ht to — ''on/th?

^ uibordinate

tranfmit to the Governor-general, quarterly, the ftate of incikicncies

each of the departments in the fettlcments more imme- betrani-'' ^°

Part II, diately "]^'[;'^'°^"'

3j6 OF THE BRITISH GOVERNMENT

CHAP. r. dlatcly under their charge. This would have the effect of
placing, conftantly, under his eye, the a6lual ftate of affairs
in all the fettlements, and would enable him to make up
quarterly reports on them, to be tranfmitted to the ex-
ecutive Government and Court of Dire61ors, at home.
One copy of thcl'c reports ought to be fent over-land;
one by a packet velTel every three months ; and one by
the firfl: of the Company's chartered fliips that might fail
after the preceding difpatches had been fent off.

—Office and There fliould bc, as at prefent, one principal Secretary
SlaaiLs?* at each of the fettlements, ta whom all difpatches fliould
be delivered, and by whom all difpatches ihould bc fent
off. Under his infpc6lion, all deeds, ads, and records,
fhould be made up for the perufal and approbation of the
Governor-general and Council ; and, in the fubordinatc
fettlements, of the Prefidents and Councils. The Secretary,
at the principal feat of Government, fhould have the duties
of tranfmitting the letters of the Governor-general to the
Dire£lors and Secret Committee, and to the Prefidents and
Councils ; and of receiving and communicating the dif-
patches or anfwers which may be received from either.
Allowing for difference of circumftanccs, the duties of the
Secretaries, at the fubordinate Prefidencies, muftbeofthe
fame kind and extent. The Secretary, at the feat of go-
vernment, fliould be allowed one or more Under-fecre-
taries, with principal and fubordinate clerks, (felefted
i from

AND TRADE IN THE EAST INDIES.

377

from the Company's covenanted fervants) according as the sect. i.
extent of the bufinefs may require. Thefe clerks ought
to be in the nomination of the Governor-general or Pre-
fidents; fubjecl, however, to confirmation in Britain.

The fiilary of the Secretary ought to be fixed, and he
ought to take the fame oaths of fidelity, fecrecy, and againft
receiving prefents, as thofe which have been taken by the
Governor-general, Prefidents.and Councils. If it be found
that the Secretary, or his Sub rdinates, betray ih trufls
repofed in them, or receive bribes or prefents, the Go-
vernor-general, and Prefidents, ought to be vefted with
the power of indituting an enquiry into the charges which
may be exhibited, and of fending the perfons home,
with the proofs, for trial, in his Majefty's courts of juftice
in Great Britain.

At the feat of Government, it has already been hinted,
that there (hould be, in the office of the Secretary, one
or more Subordinate, or Under-fecretaries ; the duties of
the firft may be to manage that part of the public depart-
ment which regards the native States ; the correfpondence
with the fubordinate Prefidencies, and the making up the
reports from the revenue, commercial and military depart-
ments. The duties of the fecond may confift in the manage-
ment of that part of the public department which regards
the European powers having intercfts in India, and the

Part II. preparation

3P-

OF THE BRITISH GOVERNMENT

CHAP. I. preparation of the dilpatches for the Government at home.
In the fubordinate Prefidencies, the whole of thcfe duties
might be afligned to one Undcr-fecietary.

It might here alfo be fuggeftcd, that each of the Boards
^vhich aheady have been defcribed, ought to have a particular
officer, under the Hkc conditions of fidelity, fecrccy, and
purity of condu6l with the Secretaries, and that his
duty lliould be to make up the reports of the particular
Board to which he belongs, which, when figned by its
Prefident, ihould be tranfmitted to the Governor-general,
or Prefidents, and held as official records.

— Queftion
whsthcr tlic
foreign Go-
vcnmit-Mits,
fliould have
the power
to make tem-
poiaiy regu-
lations for
the internal
adminiftra-
tion of the
Provinces.

Having thus marked out the Government, and admi-
nlftration which feem to be required for the mixed
political and commercial intercfts of Great Britain, in
India, a queftion of fome political delicacy and difficulty
prefents itfelf : How far would it be proper to ve/l the Go-
vernor-general and Council, or Prejidents and Councils, with
a fubordinate power, to make regulations affecling the in-
terefls of the feitlemenis committed to their charge, as events,
and the exigencies of affairs might require? That fome
fuch power muft be authorized, the diftance of India
from Britain, and the diverfified characters and inte-
rcfls of the natives, feem obvioufly to require. That
the conferring of it in fuch a manner, as neither to
allow of the poffibility of its infringing on the rights of
the natives, fubjects of Britain, whom we are bound
f, ' to

ANDTRADEINTHEEASTINDIES. 379

to protect by every tie of national honor, and by the faith SECT. I. ^
of treaties, is obvious. That it ought not to encroach upon
either the executive or legiilative powers of this country, is
not lefs fo. To define its nature and limits, will call
for the moft cool diicuflion, and experimental wifdom of
Parliament. It is fubmitted, therefore, to the confideration
of the Legiflature, whether it might not be proper to veil
the Governor-general and Council with the power of making
fuch rules and ordinances, particularly in matters of re-
venue, juftice, and police, as events or exigencies may re-
quire. It being, at the fame time, underftood, that fucli
regulations or ordinances are to be temporary only, and to
be in force no longer than (agreeably to the preceding plan
of tranfmitting difpatches) the pleafure of his Majelly, in
Council, fliall be known.

To the end that the King, in Council, may have the Reftiic-
fullefl: information, upon a matter of fuch importance to "hich"hir
the general interefts of His empire, it ought to be under- P°V"' ?"Sj'

=• ^ . . - to be placed.

ftood, that, in fuch cafes as will admit of delay, the pro-
pofed regulations are to be fent home, to receive the
King's fanction. In fuch cafes, again, where this delay
might be injurious to the general interefts of His dominions,
that copies of the regulations fliould be fent home by the
firft opportunity, fpecifying the nature and obje6l of the re-
gulation which has been enadcd; the reafons that have
induced the Governor-general and Council to form it; and
accompanied with the different opinions Avhich have been
given by the Members of Council on the fubjc<51. If the
Part II. C c g rcgula-

380

CHAl'. I.
t i

OF THE BRITISH GOVERNMENT

icf^ulaLion has a6liialiy been in force, they ought to add an
account of the effect which it may have had, during the
time it has prevailed, that His Majefty may be able to form
an opinion of the propriety and expediency of contmu-
ing it.

Reftiic-
tioiis to be
l.iid on the
executive
government
at home le-
fpc'cting it.

It may alfo be proper, that the Dire(5tors and Commif-
fioners fliall be bound (within fourteen days after receiving
fuch difpatch) to lay the whole bufinefs before His Ma-
jefty, in Council, to be either confirmed or reverfed by his
authority. If itfliouldbe confirmed by the King, in Council,
then the regulation is to be held as fixed and eftabliihed,
unlefs it fliall, upon a future reprcfcntation, be His pleafure,
in Council, to difallow, or to abrogate it. If the affair
iliould be of fuch magnitude as to call for the general wifdom
of the Legiflature, the Parliament may requeft His Ma-
jefty to vary, modify, or to annul it. In all of thefe cafes,
it is to be underftood, that the regulation is to be in force
till fuch time as the King's pleafure fliall be known, or
till orders, in confcquence of fuch alterations, by Parliament,
fliall be received in India.

Degrees of

it expcdieut
in the fubor-
ilinate Prcli-
dencics.

The Prefidents and Councils of Madras and Bombay
ought, upon the fame principles, to be vefted with fimilar
powers, with this diftincStion, that the regulation which
they may think neceflary or expedient to enadt, fliall, in
the firft inftance, be propofed to the Governor-general and
Council, who, after confidering the cafe, may cither au-
thorize it or not, as they may apprehend it to be for the

general

AND TRADE IN THE EAST INDIES.

381

general interefts of the fettlements. If they fliall authorize it,
then the regulation is to be held to be in the fame predica-
ment as if it had originated with themfelvcs. If they flial'^
prohibit it, then, after the fubordinate Prcfidcncy fliall have
received fuch prohibition, the regulation is to ceafe to be
in force. In fuch cafes the Governor- general lliould be
obliged, with the firft opportunity, to fend home the whole
cafe, with the reafons which have induced him and the
Council to form their opinions ; that the whole may come,
in the manner which has already been dcfcribed, before His
Majefty in Council, or may become afubjecl for the delibera-
tion of the Legiflature.

SECT. I.

It is, perhaps, unneccflary to repeat, and yet is proper
dift:in6tly to fpecify it, that the fame kind of fubordination
which is propofed to be eftabliflied for the government-
general of Bengal, may be made the model which, allowing
for different local circumftances, ought to be adopted in the
Prefidencies of Madras and Bombay.

Having thus marked out the kind of fubordination
which fcems to be fuited to the Afiatic fubjc£ls of Great-
Britain, we have next to afcertain the judicial, financial,
and military powers required to perfed the eflablifhmcnt of
it. Upon this intcrcfting fubjedt, certain leading circum-
flances will direct us. The fervants of the Company and
thedicenced inhabitants will require the Laws and law courts
to which they have been habituated to appeal in Europe,
while the natives will look for the continuation of the

Part II. C c c 2 inllitutions

Conflitution
ot the- jiuii-
dial, financi-
al, aiui mili-
tary powers
recjuired in
the Britifli
dominions in
India.

382 OF THE BRITISH GOVERNMENT, Sec.

CHAP. I. inftitntidns and the jurifdiction which they underiiand, and
to which they are, from education and prejudices, attached.
The Britilh fubjedts, in the fame way, will expect fuch
a fyftcm of revenue as can be rendered fabvervient to the
maintenance of the Britilli fovereignty, and yet be
accommodated to the trade by which tiie furplus revenue
is to be realized in Europe. The natives will look back
to the fyftcm of taxation underftood in their country, and
give their confidence to their European fuperiors, in pro-
portion as the ancient financial fyftem feems to remain.
This fyftem may become more, fixed in its characlers, and
more mild in its praclice, than that to which they or their
anceftors have been fubjedled by gradually introducing
into it the mild maxims of the Government of Britain ;
but as a fyftem it cannot be wholly relinquiftied or aboliftied.
The BritiQi army, in like manner, will expedl a military ar-
rangement coincident with that upon which the Company's
originally formed it; while the natives, who have hitherto
looked up to the European art of war, as taught them by the
Englifli, and to a fubordination with which they have been
familiarized in a feries of campaigns, will expe6f , under it, fi-
tuations in which their allesiiance and their valour can be ob-
ferved and rewarded. Such are the judicial, financial, and
military powers, by which that kind of government required
for Britifli India, muft be fupported ; and from which it
may be expeded to derive energy and value.

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH I N D I A, &c.

CHAP.

S E C T. II.

OF THE JUDICIAL POWER REQUIRED UNDER THE PRECED-
ING PLAN OF GOVERNMENT.

CONTENTS.

Nature of the Judicial Pozver, and Circutnjlances with which its

Progrefs is univerfally blended. — Afpedt of it in the Hindoo

Laws ; — in the Mahomcdan haw ; — and during the Period

from the Pall of the Mogul Empire to the EftablifJmient of the

Britifh Power in India, — Progrefs of the Judicial Po%vcr under

Part. II. ih&

384 OF THE BRITISH GOVERNMENT

the Eajl-India Company — in their ancient FaBories — after the
Supreme Court cf Judicature was eJlahUped. — Fouzdary
Courts for Criminal Cafes revived. — Nlzamut Ada%vlut Infil"
tuicd. — Changes made In the Confilution of the Nizamut jldaw-
lut In 1775 , — In I 7 8 1 , — In 1 787. — Subfequent Changes and new
Confitutlon of this Court. — Efabllfloment of Courts of Circuit,
and of Courts — ofMaglfracy. — Exlflng Defebls in the Judicial
Power In Brltlfh India, — ^^''fi'S f'^^^ ^^^^ Confitutlon cf the
Courts of yufllce—from the Ohfcurlty In -which the Prlhflples of
the Law Courts have been Involved— from the Courts of Civil
and Criminal furlfdlcllon being Incorporated with thofe of Reve-
nue and of Police— from the Attempts to engraft the Engllfj
Jurlfprudcnce on that of Hlndoofran. — Meajures calculated to
remove ihefe Dcfe31s. — Gefieral Ale i hod of applying them. —
Proportions refpe£llr.g the authority of the Judicial Power. —
Supreme Court of Judicature to be co?itlnued ; but the Limits of
its Civil, Criminal, and Revenue Jurlfdlcllon to be dflhi^ly
afcertalned. — Subordinate Courts, with the Power of Appeal to
remain. — Court of Admiralty to be vefed with more enlarged
Powers. — Confitutlon afid Station of the Supreme Court of Judi-
cature. — Procedure In the Supreme Court of Judicature acting In
its Civil and Criminal Capacities. — Parties ivho may feek
Judgment in the Supreme Court. — Efabllfment of a Court of
Rcqucfs. — Efabllfment of Courts for the Natives, SubjeSls of
Great Britain. — Natives, Subjects of Great Britain, defined.
Ihe Mahomedan Law, fubjettto Modifications by the Governor-
general and Council, to be the Rule of Conduct In the Native
Courts. — The Nlzamut Adawlut to be fatlonary at the Prefiden-
ciesj with its Confitutlon and Powers. — To have a Reglfer, or
6 AJJlfiant

AND TRADE IN THE EAST INDIES. 385

JJJJiant Officer of Court.— Duties of the Regifer.—furifdk-
tion of the Nizmiut Adawlut, as a Civil Court. — Jurifdiciion
of the Nizamut Adawlut when ailing as a Criminal Court. —
Jurifdidtion and Confitution of the Duati's Court) or Court of
Revenue,— under the Eafl- India Company, -when they firfl
obtained the Duannce. — Remedies fuggefed for improving it. — -
Conftitution and Jurifdiition of the Courts of Circuit —
Limits of their Jurifdiciion. — The puifne Judges, or Deputies,
to be appointed in their Place, to prefide in. the Courts of Circuit,
— both to take the Oath of Office, and /or the fait hf id Dif-
charge of their Duty — To be liable to Penalties Jor Breach of
it. — Courts of Circuit ought to have a Regifer, with Cauzies
and Mufties. — Periods of the Circuits. — Procedure in Civil
Cafes. — In Criminal Cafes — to report their Proceedings. —
Executions to be conformable to the Religion and Ufages of
the People. — Confitution of the Provincial Courts of Re-
venue — The fame Principles of Law to direSl the Pro^
ceedings of thefe Courts, as ihofe which form the Rule of
Judgment in the Nizamut Adawlut. — Conflitution atid Jurif-
diciion of the Inferior Courts of Magifrates. — Principles and
Forms upon which thefe Courts, in their different Capacities, are
to proceed. — The Collectors to be the Judges in the Courts of
Magifracy, under certain RefriClions. — Magifrates to have
a Deputy. — Extent of the Jurifdiciion, and Duties of Ma-
gifrates. — Proceedings of Magifrates to be Matters of Re-
cord. — How Magifrates are to proceed againf Zemindars, tic.
Refult of the Whole of this Syfem of Judicial Power. — A Syfcm.
of Police required for our Afatic Pojfeffions. — Separate Objects
Part. II. and

86 OF THE BRITISH GOVERNMENT

and Principles of Police and of La'-ju. — T/je Officer of Police
to have the Power of dcteHing or preventing Wrongs or Crimes^
but not of trying orptini/hing them.— The diver/if ed Ranks andPri'
vi leges of the Inhabitants require, that a Police, under Modifica-
tions, fl:ould be made efficient. — Progrefs of Police in Hindoofan
— Among the Hindoos — Ujider the Mogul Government —
Under the Eaji-India Company. — Police Pflablifmient of
1 7^2- — Police Efiablifjtnent of 1784. — Recent Improve-
ment upon this -Police. — Plan of Police propofed by the
Governor-General, Cs'c. in 1788. — Afiijiances expe^ed in
realizing this Plan, from new modelling the Court of
Requefs. — From an Afl for the Relief -of Infohent Debtors.
Objections. — Mode of ejlablifhing Regulations of Police, coin'
cident with the Plan of Government, and of Courts of fufiice.
— Propofed Confiitution of Courts of Police, for all the Afiatic
Pojj'ejfions of Britain. — Means of defraying the Charges of Police.
— Objects and Duties of the Officer of Police. — Forms of Proce-
dure in the Courts of Police. — Mode of connecting this Plan
of Police, with that known to the Native Princes. — Coincided
•with the preceding Plan of Government and ofjurijdi^ion. —
Connection of the foreign Judicial Power with, the Court for
the Trial of Indian Delinquents in Britain.

AND TRADE IN THE EAST INDIESv 387

SECT. IL

1 N every country the judicial power arifes from the ap- Nature of the

plication of the fimple precepts of juftice, to the rights of powe,''a„(i

life and property of the fubje£ls which it comprehends ; c'es^^vifh'*"*

and in the hiftory of every people, we difcovcr thcfe pre- which in

, , . , ... . . 1-11 • progrefs i»

cepts mmgled with religious opinions, and with the acci- uniformly
dental events which have given a particular caft: to their ''"' ^ '
charafters and manners. Hence it has always been difficult
to alter, and impra6licable totally to change courts of
law.

The laws which have prevailed in Hindooflan have been Afpert of ir
of two diftin(Sl defcriptions ; thofe of the Hindoos, and '" the Hm-

'■ ' doo laws.

thofe of the Mahomedans : both of thefe fpecies of laws
were intimately blended with the religion of thofe two
orders of people, fo that an attempt to encroach on the
one would be as much felt, as a violation of the other would
be refifted.

The laws of the Hindoos, from Mr. Halhed's trnnflation
of them, appear to be a colleiSlion of fimple maxims of
juftice, applicable to the obje6ts of a primasval and original
people. In pradicc, however, the judges feem to have
been uniformly influenced by the rites and cuftoms of their

Part II. D d d fuperftition.

388 OF THE BRITISH GOVERNMENT

CHAP. I. fuperflition, though their conduct mull have been con-
tiouled by fucceflive conquerors.

In the Ma-
homcdan law.

Under the Mogul empire the principles of the Maho-
medan law, taken from its relation to the Koran, have
been explained by the fedts into which the lawyers were
divided. Mr. Hamilton, in his traflation of the Hedaya,
informs us, that the MulTulman, conquerors of India
eftablifhed, with their religion and form of government,
rules of pra61ice for their courts of juftice ; that though
they in general made the Koran their rule of judgment
in the conquered countries, yet that they allowed the
Hindoos, in fpiritual matters, where they alone were par-
ties, to appeal to their own Pundits. The Hindoos thus
enjoyed an indulgence with regard to their ancient
courts, except in cafes refpedling property, in which
a Mahomedan was a party. Here the decifion always
proceeded upon the Mahomedan law. This lad circum-
ftance may, perhaps, be confidered as the fource of the
prevailing corruption of the Mahomedan law courts, in
which the decifion was generally the refult of a barg^iin
between the Magiftrate and the party who could pay the
hieheft bribe. Thefe abufes, however, did not alter the
fpirit of the law, which, in its cftei>fjble operation, con-
tinued to be invariable. In criminal cafes, the Mahomedan
courts alone decided ; and, as has already been hinted, in
cafes of property where one of the parties was a Muflulman.
Appeals, however, could be made to the Hindoo lawyers
(for this clafs of people had no regular courts of juftice)

AND TRADE IN THE EAST INDIES. 389

in cafes where the Mahomedan law had made no provifion, sect. ir.
or in which a Mahomedan had no intereft.

In Hindooftan feveral events occurred which materially
affected the progrefs of the judicial power. When the Mo-
guls entered upon their conqueft, as well as after they had
laid the foundations of their empire, they were animated
with the ftrongeft zeal for the propagation of their religion;
and, among other advantages which they expected to de-
rive from its becoming the eftabliiTied faith, in their new
empire, were the introdudlion of laws, and of law courts,
which were to be looked up to as perfect, becaufe they
were believed to be facrcd. The nature and extent of the
conqueft, however, required that the military eftablitli-
ment fhould be large and permanent ; and that the Em-
peror himfelf, as fovereign, fhould delegate, in the pro-
vinces, his judicial as well as his military powers. Hence
the reafon why that part of the law which regarded re-
venue, came to be placed under a particular officer (the
Duan) who was made independent of the Governor of the
province, remitted the produce of the revenues to the feat
of the fovereignty, and was amenable only to the Emperor
or to his vizier. And hence, too, the reafon why the Go-
vernors of the provinces endeavoured to corrupt the civil
and criminal courts ; becaufe this was the beft method of
being independent of the Duan, and a productive means
of enriching themfelves, during the uncertain period of their
government. It could not, however, from the magnitude
of the conqueft, but happen, that fome of the ancient

Part II. D d d 2 Chiefs

390 OF THEBPvITISH GOVERNMENT

t^"-^^ ^; Chiefs would be allowed to continue in their fovereignties,
though they were now to be fnbjefted to a fpecies of feu-
dal dependence, and pa}Tnent of a quit-rent to a new
mafcer. No more of the Mahomedan inftitutions were in-
troduced into thefe diftrids, than was fufficient to enable
the Rajahs to raife that quantity of revenue which, in the
firft place, could afford the tribute to be paid to the Mo-
gul; and, in the next place, enable them to fupport their
own authority. Hence the ancient Hindoovce civil and
criminal inftitutions remained in thefe diftricls, though
modified by an intermixture of Mahomedan law, and by
fuch events as gave rife to new decifions upon the fpirit of
that jurifprudence. One of the circumftances, which en-
crcafed the degree in which the Mahomedan inftitutions
prevailed, was the relation which, in all conquered coun-
tries, muft fubfift between police and revenue : the exercifc
of the one being conftantly required to- enfure the payment
of the other.

^And dur- Such, in general, feems to have been the fituation of the

incf the pc*

riod from the Judicial Power during the vigor of the Mogul Govern-
Mog'ui'era- nient. The ufurpers, who contributed to the fall of this-
''n'Ll^n'''^ empire, were either its officers, or Mahomedan foldiers of
oftheBritiih fortune; and as they had no idea of any otlier government
dia. ' but of one refembling the monarchy which they had over-
turned, they, of courfe, imitated it in their political
arrangements. Like the Mogul, they had their Duans
depending on them ; and like him they made police fub-
fervient to the revenue laws ; under them, as under the
3 Mogul,

AND TRADE IN THE EAST IxNDIES. 391

IMogul, civil and criminal courts were ufeil, as inflruments sect. ii.
for confirming the power of the new Sovereign, or for giv-
ing authority to the officers, to whom he entrufted the
different porrions of his territory.

Such of the Rajahs as became Feudatories of thefc ufur-
pers, continued the degree of Mahomedan Jurifprudence,
which has ah-eady been lliewn to have been introduced inta
their governments ; while thofe of them, who became
abfolutely independent, continued nearly the fame degree of
it, as the moft cfFe<5lual means which they could employ, to
obtain refources for fupporting their fovereignty.

In this fituation, Great Britain found the judicial power, Pi-ogrefsoF
in the provinces which fell to it, not as an abiblute con- Lwe^/under
queft, but under treaties authorifmg the Eaft- India Company t^e Eart-in-
to afTume the rank of officers of the Mogul, or of allies, and
partakers of power wdth native Princes and States.

The events which attended our conquefts and the eflablilh-
ment of our power, were of that kind, which prevented the
Company's Officers and Governors from even thinking of
innovations on the judicial power. It was time only, and
the circumftances which necefifarily occurred between con-
querors dire6led by merchants, influenced chiefly bycom»-
merc'al ideas, that pointed out the expediency of intro-
ducing the laws of England, as a better means of regulating
the judicial power, than the Mahomedan laws i'eemed to
afford. Several circiunftances contributed to favor this inno-

Part II.. vatic iXi,,

.^2 OF THE BRITISH GOVERNMENT

CHAP. I. vation. Formerly, the Company's agents were dependents
on the country powers, and obi ged to purchafe decifions in
their law courts at a high price ; now, they were mafters,
and could dirc6t thci'e law courts in the maimer of the chiefs
from whom they had wrefted the authority. Hence, one
"^reat fource of the oppreflions of which the natives com-
plained, as well as of the vindication which the fervants of
the Company offered of their condu6l, by faying, that it,
was agreeable to the eftablilhed judicial procedure in the
provinces.

—In their ANTERIOR to the conqueft, we have already feen, that

ancient fac- Govcrnmcnt had vefted the Comi^any with the powers of

tones ; _ _ . .

cxercifing civil, criminal, and martial law, in the feats of
their trade ; that Mayor's Courts had been erected at their
different Prcfulencies ; and that to thefe, they reforted, both
in fuch cafes as occurred between their own dependents, and
in cafes where the nature of the fuit enabled them to bring
the natives into court. It was, therefore, an obvious expe-
dient with the Company, to extend this kind of judicial
power over the provinces m hich had fallen to their arms.
If the Hindoos had detcfted and execrated the Mogul
jurifprudence, ftill they had been inured to it ; and if the
Mahomcdans had reludantly admitted the EngUlh to par-
ticipate in the fovcreignty, ftill they had confidered the ihare
of it which they retained, as entitling them to prefen^e the
law courts, that had originally marked ^heir government,
and to which they had been habituated to appeal. Such
circumftances made the inhabitants in general reludlant to

admit

AND TRADE IN THE EAST INDIES.

39^

admit the change, and more difpofed to value an evil which SECT. U.
they knew, than to augur good of one which they could
not comprehend. The Englifli, befides, by afTuming the
chara6ter of officers of the Mogul, and fupporters of the
Nabobs, in whofe names they admlnlflered juflice, in the
very attempt to alter the chara(5tcrs of the judicial power,
were obvioufly counterading the prejudices of their depen-
dents and new fubje6ls. We can, therefore, eafily account
for the flow degrees and difficulty with which their new
judicial proceedings advanced ; and why an intermixture of
Mahomedan and Englifh laws has been adopted in our
Afiatic provinces.

When the Supreme Court of Judicature was introduced, —After the
it was found calculated for the purpofes of correcting defeds Court of ju-
in the practice of the Mayor's Courts (already known in the eftabimwd.^^
provinces), and of deciding all cafes between Britifh fub-
je6ls, or thofe comprehended under that defcription of in-
habitants. In thofe cafes, however, in which the natives
were parties, neither its procedure nor its decifions met
their prejudices or their notions of law. Hence the
origin of the regulations which were introduced in the law
courts for the natives ; and hence the changes on this fub-
je6l, from one fyftem to another, during the lalt thirty years.

j'cvivcd.

In 1772, Fouzdary Courts*, for the trial of criminals, f°"'<l'>y

■ A- 1 • 1 r r m courts for

were inuituted m the feats of the collectors in the different criminnkafes

provinces,

* " Fouzdar, the Chief Magiftrate of a large Jiftriift, who has charge of the police,

and takes cognizance of all criminal matters ; alfo a Commander of the foldicrs.

5 Sometimes

394

OF THE BRITISH GOVERN RfENT

CHAP. I. pro\inccs, who were directed to fuperintend the proccedinc^-s
of the officers of thcic law courts ; and ordered to fee th?.t
the neccflary witnefTes were fummoned and examined ; and,
in fine, to take care that the dccifions were fan- and im-
partial.

~-K;zamut That this plan might gradually ripen into a more perfe6l

Aiiaulct infti- <-,. - • ' 1 r ■ • i • tj-o.- n.

iQtcd. practice, a lupenor court or criminal juriidiction was elta-

bliihed, under the denomination of Nizamut Adawlet^, for
revifing the proceedings of the provinci;d criminal courts;
while a fimilar controul over this court was lodged in the
chief and council of Moorflicdabad, as has already been
fpecificd, to have been vcfled in the collectors, over the
provincial courts. This laft meafure was foon found to be
inadequate, and was abolillied. The Nizamut Adawlut,
of confequence, was removed to Calcutta, and placed under
the immediate charge of a Darogha§, fubjed to the controul
of the Prefident and the Council, who, by this innovation,
were enabled to revife the fcntences of all the criminal courts
in capital cafes.

Sometimes it is one who receives the rents from the Zemindars, and accounts with
the Goveramcnt lor them. The diftricl of lands under his jurifdidion, is called
Chuckla." Indian Vocabulary.

•{•"Nizamut, the office of a Nazim ; that is, the firft officer of a province, in
whofe hands the executive power is lodged, ufually ftiled the Nabob.

** Adawlet, a Court of Judicature foj; the trial of caufes refpeifting property."

Indian Vocaeclary.

§ " Darogha, a fuperintendant." ^ Mr. Gladwin.

This

AND TRADE IN THE EAST INDIES. 395

This arrangement, with a few alterations, contihucd SECT. 11.
till 1775, when the N.zamut Adawlut was again efta- d^an-gg •
blifhed at Mooriliedabad, under the fupcrintcndence of made in the

, ^^ ., -^ . , conftitution

the Naib Nazim*, by whom Fonzdars were appointed in the of the Ni a-
feveral diftricls for apprehending and bringing to trial ail 111",; m 77^5—
offenders againft the public peace.

This fyftem was adhered to till 1781, when the -1111781 —
eftabiifliments of Fouzdars and Tannadars + were abolifhed,
and in lieu of them, the civil judges, being Company's
coAcnanted fervants, were inveftcd with power, as
magiftrates, of apprehending dekoits§, and perfons charged
with the commiffion of wrongs or crimes, or a6ls of vio-
lence, within their refpe6live jurifdi6lions, and of fending
them for trial to the nearefl Fouzdary Court, remaining upon
its ancient eflablifhment. To enable Government to watch
over this mode of adminiflering juftice, there was eflablilli-
ed, under the controul of the Governor-general, afeparate
branch of this department, at the PrefKicncy, to receive
monthly returns of the fentences paflcd in the Fouzdary
courts, with a Remembrancer, whofe duty it was to a6l as
afliftant to the Governor-general in difcharging this impor-
tant truft.

* Naib Nazim, Deputy Nazim.

-}• " Tannadar, a Commander of a fmall fort."

§ " Cecoyt, a Robber.

•

Part II. E e e It

%9^

CHAP. r.

V . '

OF THE BRITISH GOVERNMENT

It vras foon, ho\vever, found, that this plan was infuffi-
cicnt for the purpofes intended by it. The authority of the
Englifh magiftrate was, on many occafious, evaded by the
Zemindars, and principal land-holders. This obliged thefe
magiftrates to deliver over the perfons, charged with breaches
of the peace, to the Darogah of the Fouzdary court,
where, for petty crimes, they often remained in prifon for
years, and where, to obtain relief, they were under the
neceflity of ufmg every means to evade juflice, and toefcape
from punifliment.

— inijS;— To remedy this evil, in 1787, the magiftrates were
veflcd with authority, to hear and decide on petty cafes of
affray, fuch as giving abufive names, and the like ; and to
inflift corporal punilhments ; or impofc lines on the
offenders. To render the authority of thefe magiftrates
more complete, they were made collc6tors of the revenues
in their refpedlive difti"i6ts.

court.

— fubfcqucnt ^"^ "^^'^^ ^^^"^ found, from the reports of thefe colleflors
changes, and j-q ^\^q Govcmor-general and Council, that even this im-

new conllitu- . ° „ . , ^ . .

tionofthis provement was mlurhcicnt, and that courts or circuit were
required to infure a more prompt and impartial adminif-
tration of criminal law. In the firft place, the Governor-
general refumed the fupcrintendcnce of the adminiftration
of criminal juftice; removed the Nizamut Adawlut, or
chief criminal court, from Moorfhedabad to Calcutta,
direding that it fhould confift of the Governor-general and
Members of the Supreme Council, afliftcd by the Cauiy ul
5 Cozaat

AND TP.ADE IN THE EAST INDIES.

397

Cozaat, or head Cauzy* of the provinces, and two Muf- SECT, ii,

tiesf ; That it fhould meet once a week, or oftener, as

bufmefs lliould require ; and exercifc all the powers lately

vefled in the Naib Nazim, as fuperintendent of the Niza-

mut Adawlut ; That it fliould leave the declaration of the

law, as applicable to the circumftances of the cafe, to the

Cauzy ul Cozaat and the Mufties ; That it fhould have a

PvCgiiter, or an officer to direft the executive bufinefs of the

Court, who, A\'ith the lawyers, were to take the oaths,

that they would decide with impartiality andjuftice. The

decifions of this court were to be regulated by the Maho~

medan law, according to the dodrine of Yuzef and Muhum-

mud. Perfian copies of the proceedings in all criminal cafes,

tried by the courts of circuit, were to be referred to this

court for decifion. When it pafled final (entjence, a copy of

this fentence, with a figned warrant, certifying the manner

in which it was to be executed, was fent to the judges of the

court of circuit, that they might fee it put into execution.

In the next place, courts of circuit were inftituted for the — F-'tabUdi-
trial of criminal caies, three for the province of Bengal, and Couts of
one for Bahar, viz. courts at Calcutta, Moorihedabad, Dacca, "<^'"'—
and Patna. Each court of circuit was to be fuperintended by
two covenanted fervants of the Company, affifted by a Cauzi
and Mufti. The judges were to take the oath, that they

* " Cauzy or Kazzi, a Mahomedan Judge."

t " Mufty, a High Pricft. It fignifies properly au Interpreter of the Law.
He is under the Cauzy."

Part II. E e e 2 would

39'

OF THE BRITISH GOVERNMENT

CHAIM. would decide with integrity and impartiality, and were to
have a Res-ifter who (hoidd take the fame oath. The Cauzies
and Mufties were to be in the nomination of the Governor,
general in Council, to take the moft folemn oath, before the
Nizamut Adawlut, and to repeat the fame, every fix months, in
the circuit court, viz. on the ift of January, and ift of July.
Thefe circuit courts were to be held twice in their refpeclive
divifions each year, fctting out on the i ft of March and ift of
October ; and, on their return to Moorfliedabad, Dacca, and
Patna, to proceed to try all perfons committed by the Ma-
giftratcs of thefe cities. In the charge againft the prifoner,
his confcffion was to betaken with caution. The Cauzy and
Mufti were to explain the futwah or law, as applicable to
the circumftances of the cafe, and to atteft their opinions
Avith their feals and fignatures. The judges were to pafs
fentence, in the terms of the futwah, and to ifTue their war-
rant to the magiftrate, for the fame to be carried into exe-
cution, without delay, except in cafes where death or per-
petual imprifonment were to be inflicled ; which, if the
judges fliould fee caufe to difappove, either on the ground
of the trial, or of the futwah, the whole was to be reported
to the Nizamut Adawlut ; the final fentence of which, was
to be awaited for, before the futwah could be carried into
eife6t. The doftrine of Yuzef and Mohummud, in refpecl
to trials for murder, was to be the general rule, for the
officers of the court; and the dodrine of Aboo Huneelah,
which referred to the inftrument with which the crime
was committed, and not to the intention, was to be no
longer in force. The relations, in future, Avere to be de-
barred

AND TRADE IN THE EAST INDIES.

barred from pardoning the offender. The judges were to
report to the Nizamut Adawkit every inftance in which the
Cauzies or Mufties had been guilty of mifconduft in the dif-
charge of their duty. The judges were to vifit the goals,
and to fee that the treatment which the prifoners received
was proper, and to Report to the Nizamut Adawlut the in-
ftanccs of mifconduft in magiftrates ; they were alfo to re-
port to it, fuch propofitions as might appear to them
calculated for the better regulation of the trials of prifo-
ners, and for the improvement of the police of the country.
In cafes where they fhould be of different opinions on thefe
fubjects, the fenior judge was to have the calling vote.

399

SECT. I.

In the laft place, the Colle6lors in the different diftrids, ~='"'^ °^

^ . , courts of

were to be conflituted magiftrates within the limits of their magiitracyj
colledorfhip. The fubflance of the regulations laid down for
their condu6l was, as follows : the jurifdi6lion of the ma-
giftrate was to extend over all places within the limits of his
coUedorfliip, excepting thofe fituated within the limits of
the cities of Moorfliedabad, Patna, Dacca, and Calcutta ; the
three firft of which were to be allowed diflincl jurifdidlions,
the laft was to be fubje6t to the fupreme court. The magif-
trate was to take an oath, that he would aft with impartiality
and integrity. His duties were to be, to apprehend mur-
derers, robbers, thieves, houfebreakers, and to commit them
to take their trial before the court of circuit : He was to
iffue his warrant for apprehending perfons charged with
thefe crimes, upon information being made to him, on oath
and after examining the party, either to difcliarge him, or
Part II. to

403

Ol' TFIE BRITISH GOVERNMENT

CHAP. I.

to commit him for trial : He was not to admit to bail, pcr-
lons, againft whom there was probable evidence of murder,
robbery, theft, and houfebreaking : He was to try petty
offences, fuch as abufive language, affrays, &c. and, after
proof, to infli6l a corporal punifhment, not exceeding fif-
teen rattans, or imprifonment, not exceeding the term of
fifteen days. If the charge lliould be found groundlefs, he
was topuniili the accufer, in the prececding proportions, or
to impoie upon him a fine of fifty rupees, where the party
lliould neither be a Zemindar, Chowdrie, or Talookdar,*
paying a revenue of 10,000 rupees annually, nor a pofieffor
of ayma landj-j- paying a rent to Government of 500 rupees
per annum, nor of free land of the value of 1000 rupees :
but this fine was not to exceed 200 rupees, and the exact
f um was to be left to the difcretion of the magiftrate. The
magiftrate was alfo to give public notice to the Cauzy and
Canongoc§ of each Pergunnah, in his diflrift, of the in-
tended arrival of the court of circuit at the ftation ; to de-
liver to the judge of it, a l.'ft of all the perfons committed
to prifon, or held in bail, for trial, with copies of the
charge preferred againfl them, the lifl of witneffes, &c. and
after fentence iliould be pafTed, upon receiving a warrant

* Zemindar, a peifon who holds a traft of land immediately of Government, oa
condition ot paying the rent of it. He is firfl in rank among the landholders. Chow-
drie, an inferior Zemindar or landholder. Talookdjir, the proprietor of a fmall
zemindary, who pays his rent fometimes to Government, and fometimes to the Ze-
mindar or Chowdrie.

f Ayma Land. Land granted by the King, in feme places fubjccSl to a fmall
quit-rent. It is hereditary.

§ Canongoe, a p'erfon fent by the Nabob to furvey the diftrifls granted to the Com-
pany. Alfo Regifter of the Suba or Province, who holds his commilfion from the
Emperor. Literally, a fpcakcrof the law.

from

AND TRADE IN THE EAST INDIES. 401

from the iudees of the court of circuit, to fee it carried sect. i.
into execution : He was alfo to fubmit to the judges of the
courts of juflice, hfts of all perfons whom he might have
apprehended and difcharged : He was to vifit the goals, at
lea ft, once a month, and to fee that feperate apartments
were affigned to prifoners under fentence of death; one lund
of apartment was to be allowed to perfons fentenced to impri-
fonment by the court of circuit; another, to perfons com-
mitted to take their trial before it; and a third, to perfons
under fentence for petty offences : He was in the event of
any European Britifh fubjedt, becoming amenable to juftice,
to fend him to be tried in the fupreme court of judicature,
whither he was to repair himfelf, and take meafures, or give
fecurity for the attendance of the witneffes in the trial. In
cafes where the witneifes, from inability or poverty, fhould
not be able to defray the charge of the journey, he was to re-
port the fame to the Nizamut Adawlut-for its determination.
All Europeans, not Britilh fubje6ls (French fubjedls excepted,
who were to be treated as Britilh fubje^ts) were to be equally
amenable with the natives to him within his diftri6l, and to
be tried in the court of circuit. When it {hould become
neceflary to commit a Zemindar, or Landholder, he was to
notify the fame to the Governor-general. When the court
of circuit fhould dired a pecuniary compenfation to a party
injured, the magiftrate was to fee the decree carried into
execution ; all complaints, with the orders upon them, were
to be recorded in the magiftrates office, both in Englifli and
Perfian, and monthly to be forwarded to the Nizamut Adaw-
lut ; returns were to be made fpccifying the names of the
perfons apprehended, and date of their apprehenfion, with
Part II. lifts

402 OF THE BRITISH GOVERNMENT

CHAP. I. lifts of prifoners, cjnfined under fentence; ofpcrfons on whom
fcntence had been nafted in the court of circuit ; and of pcrfons
tried and their caufcs referred to the Nizamut Adawlut*.

ExlftingJe- It appears from this hiftory of the judicial power in the
^^^\ch\ ^^^ center of the Britilh provinces (and allowing for the difFer-
power in ^j^qq of fituation and circumftances of our fettlements on

Biitidi India, n i ,- i - •

the Coromandcl coaft, the lame oblcrvation may be made
on judicial procedure in them) that the experiments
which had hitherto been made, did not produce the be-
neficial effects which were intended by them ; and the rea-
fons are obN'ious.

— Aiifing In the firft place, the law of the country, as exift:ing

ftUutionor* during the period of the Mogul power, was mixed in its
^r'^fti""' fourccs, and rendered obfcure by the interpretation of
the lawyers. Tllbugh the Mahomcdan jurifprudence was
appealed to iii the law courts which the Moguls infli-
tuted, yet it was neccflary, from the nature of the cafes
on which they decided, (to wit; the rights of the land-
holders, many of whom were Hindoos, and the quantum of
revenue to be paid in -the progrelTion from the Peon to the
Farmer and to the Zemindar) to give fome attention to
the original tenures by which fubjecls were allowed to hold
their property, as well as to the circumftances attending
the new duties which were impofed upon them. This creat-
ed an intermixture of Hindovee ufages, and of Mahomedan

* See Regulations for the Adminiftration of jufticc in the Fouzdary, or Criminal
Courts. Calcutta, 1791. Page 18, 21.

6 j""f-

AND TRADE IN THE EAST INDIES. 405

jurifdi6tion : many, too, of the Rajahs of an inferior order SECT. Ii.
were allowed to retain the ufagcs in their different diftricls ; of
confequence their ancient pra6lice remained in force, while
they copied feveral of the forms of the Mahomedan law courts,
particularly for the purpofes of police, and for levying the
duties which they paid as quit-rents.

In the next place, after the fall of the empire, the di- tJ''°'." ^!"^

r ' I ' obfcunty in

flin6tion between the Duan's courts and the Nabob's, was which the
by no means preferved. The neceffities of the new fovcreign thciawcouits
(to fay nothing of the rapacity of a low adventurer exercifmg inVo^iveT^
power) led to great irregularity in jurifdiftion of every
kind ; fo that when Great-Britain came to be in poffelTion
of the provinces, it found the law courts of the natives
highly corrupted, and the principles to which they appealed
fo involved in commentaries, as to be fcarcely intelligible,
particularly to foreigners. Of this we have a ftriking proof
in the reports lately made refpefting the flate of law courts
in Bengal, where it has taken not lefs than thirty years to
decide on the queftion, whether, in trials for murder, the
do6lrine of Yuzcf and Mohummud, who made the inten-
tion the criterion of guilt, or whether the do6trine of Aboo
Huncefah, who made the manner or inflrumcnts with
Avhich the crime was committed, the rule for determining
the punifliment, was the do6lrine in the futwah or law ?

In the third place, there exifled an original defe61 in the in-

ftitution of law courts in Hindooftan, which, in itfelf, mull

Part II. F f f have

404

OF THE BRITISH GOVERNMENT

CHAP. I. have rendered them unequal to the purposes for which they

— FVmn the were intended, and open to great corruption, viz. That the

vi'uud'crr-'' civil and criminal laws were intermixed, and that the re-

mimiijuaf- vcnue laws and u^aecs for police were blended with both,

dioioii, being' ^ '■

incorporated and with cach Other. Wherever this has taken place the

with thole of J r J • r ■ ,-l.

revenue and Hghts Or property arc undenned, cnmes may elcape puniln-
o poict. ment, and breaches of the peace may become frequent. It
is owing to the defined limits between the civil and the
criminal laws of England, that they fo nearly approach
to the perfe(5lion or the law of Nature ; and it is owing
to the revenue laws being diflind from both, and the
police fubordinate to the whole, that* the liberties and
fafety of the fubjedl are fo cxadlly afcertained and generally
underflood.

In the laft place, the experiments which have been made

. — From the ^ ^ . .

attempts to to engraft the laws and pra6lice m England upon the ju-
Kngiifliiu-"^ rifdi6tions in India have proved to us, that the mo'ft laud-
nfprudcnce ^^^^ eftorts which we have been able to 'make ftill have not

on that ot

Hindooftan, anfwcred the beneficial ends they were intended to pro-
duce, though tlie Supreme Court of Judicature has been
found adequate to all the purpofes of prote6ting Britifli
fubjeds, or thofe of the inhabitants who are included
in that dcfcription : hence the fliiftings from fouzdary
courts, in different diftricts, under colledlors who' were
Company's covenanted fervants, and the cftablifliment of
theNizamut Adawlutat Moorfhedabad, under the controul
of the Chief and Council of that city : hence the removal of

AND TRADE IN THE EAST INDIES. 405

it to Calcutta, under the charge of a Darogah, fubjeft to SECT . 11.
the controul of the Prefident and Council : hence its being
again eftablilhed at Moorlliedabad, un/Jcr the fuperinten-
dence of the Naib Nazim, by whom Fouzdars were ap-
pointed in the feveral difl:ri6ls ; and hence the adminiftra-
tionofit being again brought under the controul of the
Governor-general, and the eftablifliment of colle6lors as
magiftrates within their refpe6live diftri6ls : hence the recent
regulations which have fixed theNizamutAdawlut at Calcut-
ta, under the Governor-general and Council, &c. and hence
the inftitution of judges of circuit and magiftrates of diftrids.
All thus has been experiment, not yet fufficiently full to
allow of any other opinion, but that wc ifiuft go on gra-
dually to improve on the courts of juftice known in that
country, till time and habits lliall give them fuch degree of
perfeftion, as the prejudices and manners of the people
will admit. Though the attempt to do more might be
perfedlly agreeable to the liberality of the Britifh nation, it
would only tend to diminilli, inftead of foftering the alle-
giance and attachments of the natives, looking up for our
prote6lion.

Two obvious meafures feem to prefent thcmfelvcs in ^^eafures

. . 1 • 1- • 1 • calcuhucd to

forming plans for nnprovmg the judicial power ni our lemovi; tUeic
Afiatic proviaccs ; firft, that the Engliili law fliould be
continued as the rule of condu6t for Britifli fubjects, or
for thofe who have been included in that defcription ; next,
that the diftinct objeds of law, viz. property, life, reve-

Part II. F f f 2 nue.

ilelects.

4o6 OF THE BRITISH GOVERNMENT

CHAP I. jiiie, and the prcfcrvatlon of the public peace or police
fliould direct in an arrangement of the native law courts.
The abufes in the law courts of the country might thus
gradually be done away, viz. the intermixture of civil and
criminal cafes, with cafes refpefting revenue, and the pre-
fervation tf police. In police the magiflrate has to prevent
or deteft irregularities or crimes, the judges of the pre-
ceding defcriptions try and punifli them.

General SUPPOSING thcfe mcafurcs admitted, we may, on the bafis

pKin° them,' °^ them, fuggcfl fome general propofitions, calculated to
eftablini, firft, the judicial power, as it is intended to
prote6t the lubje6ls of Great Britain in India, and fuch
of the inhabitants as have been brought under that def-
cription ; and next, propofitions which it may be expe-
dient to adopt for preferring to the natives the gradations
and forms of their own law courts, in the manner they
have been new modelling by the humane and equitable
jurifprudence of Great Britain. In bringing forward both
of thefe kinds of propofitions, we muft keep in view
the diftin£t objedls of law courts, viz. property, life, and re-
venue ; and conclude, by treating q{ police, as diftinguiihed
in its nature from law, though the only means of ren-
dering law courts ufeful and refpe6Led, and the govern-
ment which eftablillies them, the fource of protection to
the natives of India.

Upon

AND TRADE IN THE EAST INDIES.

407

Upon thefe principles of arrangement, the following pro-
pofitions are fubmitted on the fubjed of the law courts in-
tended to proted the property and lives of the inhabitants
of our Indian provinces ; that is, of thofe who have been
comprehended in the general defcription of Britifh fubje£ts.

SECT, 11.

Propofirions
refpectiiigtue
authority of
the judicial
power.

First. It ispropofed, to continue the Supreme Court of
Judicature ; but, by degrees, more clearly to define the li-
mits of its proceedings, when a6llng in its civil and cri-
minal capacities ; and when a6ting in aid of the Governors
and Councils judging of matters of revenue. That, as
at prefent, all Britifh fubje6ts, whether Armenians or
French, (the fubje6ts of France, by the treaty concluded at
Verfailles in 1787, were included in that defcription) iliould
be under its protection.

Supixme
Court of Ju-
dicature to
be continued,
but the li-
mits of its
civil, crimi-
nal, and re-
venue jurif-
diclion, to be
diftinftly af-
certaii4ed»

Second. It is propofed to continue the fubordinate courts Subordinate-
of juftice, which, at prefent, exift in the Britiili fettlements, the po'wev'of
for trying leffer cafes by the Englilh law ; and that, from thefe |^*'|"' '° '"'
courts, appeals may be made to the fupreme court, in matters
of property, as in England ; but not in cafes where parties
have been found guilty of petty larcenies, in the manner to
be hereafter fpecified.

Third. It is propofed,, that the Supreme Court of Judi- Courts of

cature, fliould be more fully vefted with the powers of acting bc'^"!'/(ie7 ^

as a Court of Admiraltv; or the GoAernor-2;eneral, of an- ^'•^l^ '""'■<=

... enlarged

pointing Admiralty Courts, upon the fame principles with powers.
Part II. 6 thofe

4oS O K T H E B R rr 1 S 1 1 G O \' E R N M E N T

CHAP. I. thofc in England, and in the manner to be hereafter pointed
out.

The natural fituation of the Britiih provinces prefcnts
■ys with an extent of lea coaft, as well as of navigable rivers,
and the commerce with ihefe provinces, whether European
or internal, requires a Court of Admiraty : it might be
proper therefore to eftablifli one to take cognizance of all
cafes at each of the Prefidcncies. The objects of thefe courts
ought to be defined, viz. to judge and try cafes of murder,
piracy, felony, crimes, trefpaffc^, and mifdemeanors com-
mitted on the feas, within the Company's limits between
the Streights of Magellan and the Cape of Good Hope:
and alfo, to try all pleas of contradls, debts, exchanges of
policies of infurance, accounts, charter-party agreements,
loading of fliips, contracts relative to freights or ihips hired,
tranfport money, maritime ufury, or bottomry ; and, in
general, all trefpafles, injuries, complaints, demands, and
matters, w^hether civil or maritime, between merchants,
owners, or proprietors of fhips employed within the Com-
pany's limits, or done on public rivers, in ports, or harbours,
belonging to their territories ; and, in general, to fubject
the paitics to the fame fines and punifhments, as in
England.

Conftitution FouRTH. It is propofcd, that the Supreme Court of

the sJp°ren?c Judicature Ihould be flationary at Calcutta ; and that it

Court otju- fhould confifl of a Chief Tudcre and four puifne Tudees ;

the whole to be in the appomtment of His Majefty, with

5 adequate

AND TRADE IN THE EAST INDIES.

409

adequate falaiies ; to take an oath, &c. as fpecified in the
Act of the thirteenth of the King and fubiequcnt A6is,
eftablilhing their jurifdiJlion ; and to be hable, upon
charges exhibited before the Governor and Council of their
having a6ted with partiaHty or corruption, to be font
home for trial, before the Committee of Parliament infli-
tuted for the trial of Indian delinquents.

SECT. II.

re in

capacities.

Fifth. It maybe expedient, that the line of proceedings Procedu
in the Supreme Court, acling either in its civil or criminal c^u^t" o7hf.
capacity, be declared to be as in England, when the parties di'-^ature, aci-

' . . " '■ inginits civil

are Britiln iubjects ; but to vary, when one or the parties is and criminal
a native, or when both parties are natives and appeal to it.
In the former cafe, the laws of England ought to be the
rule of judgment, but the court to be obliged to call in a
certain number of the judges of the native courts, to inter-
pret the procedure to the natives, with the reafons of the
decifion. In the latter cafe, after the trial has proceeded
upon the fame forms, it may be left with them to accept or
not, of the prote£lion of the Britiih laws ; if one or both
of the parties fliould decline this prote6tion, then the court
ought to be vcfted with the power of pledging itfelf pub-
licly, that, in fo far as the cafe will admit, the parties, as
they have appealed to the general juftice of the Supreme
Court, fliould have a decifion agreeable to their own laws,
as interpreted by their own judges, who fhall be pre-
fent to declare what their decifion would have been ; but
that it fhould be pronounced by the court itfelf, to imprefs
Part II, parties

410 OF THE BRITISH GOVERNMENT

CHAP. I. parties of this defcription with proper ideas of the autho-
rity as well as of the purity of tl:ie Court.

In the fupreme court there ihould be, as at prefent, an
Advocate-general of the Company, whofe province it is to
a6t for the Company's intcrcfts, \\ hether the court is fitting
as a civil or criminal court, or affifting as a court of re-
venue, or judging in cafes that come under the gene-
ral defcription of treafon or of mifdfmeanor, in which
the Public may be intcrcfted- It ought, however, to be
underftood, that this officer fliould have no po^\'er to in-
ftitute a fuit, unlefs he fliould previoufly have received a
warrant for this efFe6>, under the hand and feal of the Go-
vernor-general, or, in his abfcnce, of the fenior member of
council, a6ting as Governor-general ; and that the appli-
cation for fuch warrants, with the reafons for granting
them, be always recorded as part of the public tranf-
adions.

Parties who SixTH. It is propofcd, that, as at prefent, all cafes be-
mayfeek twcen Britilh fubieds, or others who have been admitted

judgment in J '

the fupreme Under that defcription, or of natives appealing, in the firft
inftance to the protedlion of the Britifh laws, fliould be
triable only in the fupreme court. It being however un-
derftood, that if the natives, being parties, fhould have
firft appealed to the courts in which their o^^'n laws are
confidered in whole, or in part, to be the rule of judgment,
then they muft: abide by the decifions of thofe native
courts.

Seventh.

court.

AND TRADE IN THE EAST INDIES. 411

Seventh. It is propofed, to eftablilh with more exten- SECT. il.
five jurifdi6lion, than it at prefent fcems to poflcfs, a Court Eftabiifliment
of Requefts ; that is, a court for tryiiip; Icfler cafes of a civil °'"'* court of

^ _ / o rccjuclh.

kind, and witli the power to a6l for the relief of infoh^ent
debtors. As a court of requefts, it may retain its
prefent conftitution ; but, as it frequently happens,
that debtors, for petty fums, have been confined to prifon
for a long time, by the decree of this court; and as
the nature of the climate renders fuch confinement
almoft equivalent to a condemnation to death, it might be
proper that the fupreme court fhould, annually, in the
month of January, require an alphabetical lift of the pri-
foners for debt, from the preceding July, with the names
of the profecutors who have detained them in prifon ;
that the gaoler of the different prifons ihould take an
oath, that the lifts of the prifoners are correct ; that the
debtors fhould have the privilege of making application
to the court for being delivered from prifon, and, in their
petition to this eff^cdl, fpecify their readinefs to make oath,
as to the amount of their real, or perfonal property in-
India, Great Britain, Ireland, or elfewhere ; a fchcdule of
which ftiould be delivered to the fupreme court, a certain
number of days previous to the 7th of January, to be pub-
liflied in the Gazette, or authorized paper at the feat of
Government, that all the creditors of the prifoner may have
due notice of the application, and may make objedlions, if
any they have that are reafonable or lawful, againft the
liberation of the faid debtor, and that thcfe obje6lions lliould
^'' Part II. G g g be

;'j

OF THE BRITISH GOVERNMENT

CfTAP. I be j'itigecl of by the court; that the court fhould then order
a conveyance of the eftates or effects of the prifoner, a3
vcftcd in ihcir prothorotary, to be divided and paid to the
creditor or creditors of the prifoner. It Ihould be underftood.
that the creditors may inftitute any objections of a vaUd.
or legiil nature againft fuch dividends before the fupreme
court, who fliould have power to delay the fale of the effe£ts
or the eftates, or to new arrange the dividends, in the man-
ner that may appear to them to be juft and legal. It is
alfo to be underftood, that the debtors fo petitioning, if
they {hould be intitled to any copyhold or cuftomary eftate
in Great Britain, Ireland, or elfewhere, do affign over their
rights thereto, to the prothonotary of the court, to the full
amount of their debt ; fuch aflignment, however, ought not
to preclude the payment of any inortgages that may already
have been legally made upon the faid eftates. And as it
may frequently happen, that the gaolers or ofEcers of
court may be liable to corruption, either by receiving
bribes from the debtors or the creditors, it will be neceflary
to fix the fee due to them, at a fpecificd moderate fum,
to be paid by order of the court, before the dividend fliould
take place ; the fee of the gaoler not to exceed one rupee^
and that of the other officers in propoition ; and that upon
breach of trull, or upon extortion of any defcription, either
from the debtor or the creditor, they be made liable to the pe-
nalties for perjury, and to fuch fines as the fupreme court may
think it nccefTary to levy for preventing fuch offences.
When an order of court fliall have difcharged fuch debtors,
any eftate or property which may accrue to them within
^ ' „ three

AND TRADE IN THE EAST INDIES. 413

three years after their difcharge, ought to be made liable SEcr. ii.^

for the amount of the debt ; it being, however, undcr-

ftood, that no pcrfons, who may have any fhare in thefe

eftates, fhall be hable to have their proportion affected

by this demand. And as the diftrefling of fuch difcharged

debtors might have the effe6l of. driving perfons, exercifing

ufeful arts, out of the Briti(h provinces into the provinces

of the native ftates, or fa6lories of the European powers,

it ought to be eftabHflied, that no fuit can be inftituted

againft them, till after petition to the Supreme Court,

and with proofs and reafons for prefenting it, it fliall

appear that no fraud is intended. The court upon being

fatisfied on this point, may iflue its warrant, authorizing

the fuit to be commenced.

Having thus pointed out the eflablilliment of the fupreme Eftabiifh-
court of juftice, in fo far as it is intended to aft for the com ts^for the
proteftion of Britilh fubjefts, it will next be proper to S's' "'o^l'fa'
detail the gradation of courts, where the law muft be Bm;dn.
mixed, by taking principles from the Mahomedan infti-
tutions and forms, and improving on them (as much as
the nature of the cafe will admit) by the intervention of
the government of Great Britain and the application of its
milder laws and pradice.

On this fubjecl, it is to be underftood, that the parties N.nives

are natives and not fuch as can, in any refpe6t, be com- [jl^i'^^Brf.

prehended within the preceding defcription of Britifli fub- ''*'" Jeti"tii.

Part JI. G g g 2 jeds ;

414

OF THE BRITISH GOVERNMENT

CHAP. I.
« . '

je£ls ; and that all Europeans rcfiding within the Biitifli
provinces (the French fubjects only who by the treaty
1787 are to be held as Britifli fubjects, excepted) fliould
be confidered as natives, and fubje6t to the mixed jurifdic-
tion of the courts of law, eftablilhed by the joint authority
of Great Britain and of the native Princes its allies and
dependents.

The Maho-
medan law
fubjedt to
modifications
by the Go-
vernor-gene-
ral and
Council, to
be the rule of
conduct in
the native
•ourte.

First. It is propoftd, that the Mahomedan law fhall,
in general, be held to be the rule of condudt for all the
authorized native courts ; but fubje^l to fuch modifi-
cations and improvements as the Governor-general and
Council may, upon the application of the native judges and
lawyers, think it expedient to adopt and authorize ; fuch
as the dodtrine of Yuzef and Mohummud in all trials for
murder; and the debarring the relations ot the profecutor
from pardoning the offender. Thefe improvements, how-
ever, muft be introduced agreeably to the preceding plan of
government, in the form, of regulations, and be matters
of approbation or dil'allowance in England,

The Kiza-
inut Adawlut
to be rtation-
arj- at the
Prefidencies,
with its ccn-
ftitution and
powers.

Second. It is propofed, that the Nizamut Adawlut
fhould be eftabliflied at Calcutta; and, allowing for
differences of circumftances, at the refidcncies of the
Governors and Councils in *the fubordinate prefidencies:
that, at Calcutta, it fhould confift of the Governor-general
and Members of the Supreme Council, affiiled by the Cauzy
ul Cozaat, or head Cauzy of the provinces, and two Mufties :

♦* that:

A^^D TRADE IN THE EAST INDIES. 415^

that it lliould be veiled AVith all the powers held by the SECT. ii.
Naib Nazim, or- fuperintendent of the Nizamut Adawlut ;
but that in the declaration of the law, as applicable to the
circumftances of the cafe, the Cauzy ul Cozaat, and the
Muftics, Ihall pronounce agreeably to former pradlice :
that the court do meet once in every week, or as often
as the ftate of bufinefs fliall require; and that a regular
diary be kept of all its proceedings: that the Cauzy ul
Cozaat and the Mufties, (after the Governor-general and
Council have taken the oaths) fhould alfo take the moft
folemn oaths prefcribed by their religion, to adminifter
juftice. As perjury is, in many cafes, an expiable crime by
the Mahomedan inftitutions, the oath fhould be of that
kind which is held to be inexpiable, and the forms in taking
it fliould be repeated every fix months, publicly and in
open court, that the imprefTions from the obligation may
not only be made the moft ftrong that is poffiblc, upon the
minds of thefe judges themfelves, but in the opinion of
fpedlators. The oath, on entering on the office to be as fol-
lows : " I Cauzy (or Mufty) of the court of circuit
for the divifion of folemn ly fwear, that I will
truly and faithfully perform the duties of Cauzy (or Mufty)
of this court, according to the beft of my knowledge and
ability ; and that I will not receive, dire6Uy or indiretlly,
any prefent or nuzzer, either in money or in efte6ls of any
kind, from any party in any fuit or profecution, or from any
perfon whomfoever, on account of any fuit or profecution,.
to be inflituted, or which may be depending,, or has been.
Part IL. decided;

4l6

OF THE BRITISH GOVERNMENT

S^^i\ dcciiled in the court of circuit of which I am Cauzy
(or Mufry) nor will I clireclly or indireclly derive any
profit from my offic:, except fuch as the orders of Govern-
ment do or may authorize me to receive." The oath at
tl-.e expiration of every fix months to be as follows :
" I Cauzy (or Mufty) of the court of circuit

for the divifion of folemnly fwear, that from

the to the I have truly and faithfully-

executed the duties of Cauzy (or Mufty) of this court,
according to the bed of my knowledge and ability ; and
that I have not received, diredly or indire6lly, any prefent
or nuzzer, either in money or in effects of any kind, from
any party in any fuit or profecution, or from any perfon
whomfoever, on account of any fuit or profecution, which
has been, or is to be inftituted, or is depending, or has
been decided in the court of circuit of which I am Cauzy
(or Mufty) nor have I dire<5lly or indiredly derived any
profit from my office, except fuch as the orders of Govern^
ment have authorized me to receive."

To have a
l\f;'ifter, or
afliflant offi-
cer of court.

In order to condud the bufinefs of the court with effect,
it may be neceffary to appoint a Regifter, with the official
appellation of Regifter to the court of Nizamut Adawlut;
and that he take fimilar oaths of fidelity, and of integrity
in the difcharge of his duties with the Cauzy ul Cozaat
and the two Mufties. It will be expedient alfo to ena6l,
that the Cauzy ul Cozaat and the Mufties, be required to
meet at the office of the Regifter three times in every week,

AND TRADE IN THE EAST INDIES. 417

or oflencf, if the ftate of bufinefii fliall require it; and that sect, ir.^
the Regifttr fnbm't to them the Pcrfian copy of the pro-
ceedings, in all trials, which may come by appeal, from
the inferior courts, to be immediately fpecificd ; that, after
confuiering the lame, they fhould give in wridng, at the
office of the Regifter, their opinion, Avhether the futwah
or fentence of the law which has been appealed from, is
confiflent with the evidence, and conformable to the Ma-
homedan law, as modified and improved on, in the maiv-
ncr pointed out in the preceding propofition.

After this progrefs has been gone tlirough. It fliould be Hunesofthe
the duty of the Regifter to lay the relult before the Niza-
mut Adawlut at their next meeting, that it may pro-
nounce, or pafs a final decree upon the cafe; the Regifter
is then, within three days after pafling fuch degree, or fen-
tence, (or earlier, if the ftate of bufinefs will allow) to
tranfmit a copy, attefted with his official fignature, and un-
der the feal of the Nizamut Adawlut, to the judges of the
court of circuit, who are forthwith to iffue a warrant to
the magiftrate of the diftri6>, from which the cafe has come,
to fee that the fentence be carried into execution. Tlie
magiftrate is to be bound to return the \\ arrant to the court
of circuit, with an endorfement, attefted by his official feal
and fignature, verifying the manner in which the fentence
has been executed, and the judges of circuit are to forward
this endorfement, with the warrant, to the Nizamut
Adawlut.

Part IL It

4i8

OF THE BRITISH GOVERNMENT

CHAP. I.

It rauft frequently however happen, in the diftri-
bution of juftice within the hmits immediately under
the jurifdiction of the Nizamut Adawlut, that cafes may
be brought before it in the firft inftance. In this event,
the Cauzy-ul Cozaat and the Muftics, aihfted by the
Regifter, ought to be empowered to take the evidence, in
prefence of one of the European members of the Nizamut
Adawlut, then to declare, under their fignatures and feals,
what the law is, as applicable to the cafe, and to report
the fame to the court, at their firft meeting, for its de-
cifion.

Jurifdic-
tion of the
Nizamut
Adawlut, as
a civil court.

Third. It is propofed, to explain more fully the
capacities, in which the Nizamut Adawlut may a£l, as a
civil and as a criminal court. When aifting as a civil
court, and judging in matters of property (the fole fubjeft
for the judgment of fuch a court) the Mahomedan law un-
der the preceding reftrictions, and pronounced on in the
preceding manner, fhould be the rule of conduct. It being,
at the lame time, underflood, that the application of this
law muft vary, if one of the parties fliould be a native,
and another included in the preceding defcription of Britifli
fubjefls. In a cafe of this laft kind, it will become ncccflfary
to advert to the manner, in which the property litigated is
claimed, by what we term the plaintiff; and detained, by
what we term the defendant. If it is land, or heredita-
ments which have been conveyed by the tenures under-
ftood m the Mahomedan law, then, that law muft be held

AND TRADE IN THE EAST INDIES.

419

court.

as the rule of judgment. The fame principle will apply ,^^-^"^- ^^\
to obligations or bonds. If a Britifli fubjcdt has acquired
his property by the ellabliflied law of the country-, then
he can only reft his coinplaint or his defence upon
that law. If, on the other hand, he has acquired it
according to the forms prefcribed by the law of Enoland,
the cafe will naturally be referred to the fuprenie couri:
of judicature for its decifion.

When the Nizamut Adawlut ads as a criminal court, jurircne-
if the party accufed lliall be a native (ac;reeably to the de- L'!"." °^ ••'«
Icription given of the mhabitants, to be included under that Adawiut,
term) then the Mahomedan law, with the regulations which TsTalrnhfai
have been pointed out, flriould become the rule of trial and
of judgment. It is however, tobeunderftood, that though
the Cauzy-ul-Cozaat and Mufties are to give their opinions
on the law and on the evidence, yet that the decifion or
fentence fiiould be pronounced by the prefident of the court,
to imprefs not only the parties, but tha native judges who
have directed the forms of the trial and interpreted the law,
with ideas of the authority, as well as purity of the Britiih
•Government, In this cafe too it niight be proper to enadt,
that the Regifter of the court repeat the decifion or fen-
tence, explain it to the parties, and, (though all ideas of
Jiorture or cruelty which formerly prevailed in the country
fliould be exploded) yet that the execution of the criminal
iliould always be in conformity to the cuftoms of the Ma-
homedans, if he be a Mahomedan ; and according to the
Part II. H h h cuftoms

420

OF THE BRITISH GOVERNMENT

< . '

CTJAr. I. ciifloms of the Hindoos, if he be of their religion. It has
I'requently happened, from not giving due weight to this
circLimftance, that the fpedtators, inftead of having the
proper imprefTion made upon them, on feeing a criminal
punilhed, have, on the contrary, been fo offended at the
manner in which he was put to death, that, forgetting his
crime, and the defence of their rights by the fan6lions of the
law, they have felt their religious prejudices infulted, and
themfclves difgraced.

furifdiaion FouRTH. It is propofed to feparate, as much as the
^•"'^ orth'e"" nature of our acquifitions will allow, the jurifdidion rc-
Duan'scourt, qyiiej in mattcts of revenue, from that which has been

or court ot ^ ......... ^

revenue;— pointed out as proper m civil and m criminal cafes. It
was, perhaps, one of the greateft defeds in the Mogul
government (though it was one infeparable from the
nature of their conqucft) that they not only blended
the regulations by which they levied duties with their
civil and criminal* laws, but that they gave to the col-
le61ors of the revenue, in many inftances, the power of
a6ling as civil and criminal magiflratcs: the confequences

-have been, that from the Duan, down to the Zemindar and
Chov. drie, opportunities for opprelTion were frequent.

—Under the When tlic Eaft-Iudia Company were veftec^ with the
Company ofuce of Duau, that i?, with the office of apportioning
when ihev ^j^^j levviu"; the duties, whether rents of lands or im-

fint obtained / o '

thcDuannce. polls on trade, they found it impoflible, from being

2 ft rangers

AND TRADE IN THE EAST INDIES. 4^1

flrangers to the cufloms of the country, to n<St in any ![^'^^' ^^^
other way than by Deputies or Naib Duans. The con-
fequences were, that thcfe Deputies, prcfuming upon the
ignorance of their new maflers, introduced a feries cf
opprcffions, and not only themielves praclifed them, bui:
allowed their lowefl fubordinate officers to do the fame.
As there was no means of redref?, the Naib Duan himfclf
being the judge before whom the compla nt was com:.'etcnt,
he had it in his power to opprefs the natives, who there-
fore fought in evading payment of revenue a more
probable advantage than they could expedt to derive from
an appeal to the law. It may eafily be fuppofed, that the
Naib Duan and his officers would find out effe6tual means,
in prefents and bribes, of preventing the Company's fer-
vants from making complaints to the Governor and Coun-
cil, who now w^ere the real Dnans ; and that when the
complaints of the natives at laft reached them, the blame
would be thrown from the Company's fervants upon the
Naib Duan and his officers, who either were to be removed
from their ftations, or to be continued in them, bccaufe they
could give more valuable prefents or larger bribes.

It may therefore be expedient in all, matters of reve- Remec'ics
nue, that the Governor-general and Council, aflifted by im^vW^ir.
a certain number of native judges and officers, fliould a6t
as a fupreme court of revenue ; that the ancient revenue
Jaws, corrc6lcd and regulated (in the manner which has
already been pointed out for the improvement of the
civil and criminal laws) fliould be formed into a fyf-

Part II. Hhh 2 tem.

422 OF THE BRITISH GOVERNMENT

CiiA i '. T.^ tern, and held to be the rule of judgment in the Court ;
that it lliould be competent for this court either to judge im-
mediately of cafes of revenue within the limits of the feat of
government, or of appeals from the Refidencies of the dif-
ferent collectors. This arransiement would have the moil
manifcfl: advantages : it would prevent the Naib Duan, or
his fubftitutcs, from oppreffing the people ; it would pre-
vent the Company's fervants from corrupting or being
corrupted by the native colle6lors who atft under them ;
and it would obviate the otherwife almoft infurmountable
objection againft the Company's fervants officiating as
judges of diftri61s, or magiftrates of police, at the fame time
that they were colle>5tors of revenue. It feemfi, indeed, to
be hardly poflible, by any other means, to root out the in-
herent evil in the Mogul fyftcm of government (and no
other plan fcems to be prafticable by us), of making the
colle6lor of revenue a judge either of life or of property.
Though this arrangement refers to the Bengal provinces,
it may be introduced into our pofleffions on the Coromandcl
coaft, and, more eafily ftill, into the Northern Circars..

Corilitu- Fifth. It is propofed to eftablifh courts of circuit upon'

tiuri and jll- ■> r • • i • i 1 r

riidktion of the lame principles with the lupreme court, viz, courts
ci'^uC"''^ which (hall aft in the diftinft capacities of civil and
criminal : that for the Bengal provinces, the circuits
Ihould be four, three for the province of Bengal, and one
for the province of Bahar. The Bengal divifions to be deno-
minated the courts of circuit for the divifions of Calcutta,
5 Moor-

AND TRADE IN THE EAST INDIES. 423

Moorfliedabad and Dacca : that for the province of Bahar, ^sect. il
the court of circuit for the divifion of Patna.

The Calcutta divifion might comprehend the difl:ri6ls Limits ot
under the colleftors of Nuddea, Berbhoom, Ramghur alaion""*"
(thofein Bahar excepted), Bardwan, Midnapore, the Salt
Diftridls, the Twenty-four Pergunnahs, Jeffore, and the
diftri6ls under the collector of the town of Calcutta, not
within the jurifdi6lion of the fupreme court of judicature.

The Moorfliedabad divifion might comprehend the city of
Moorfliedabad, and the difl:ri(51:s under the colle6lors of
Moorfliedabad, Boglepore, Rajefliahee, Purneah, Dinage-
pore, Rungpore, and the Commiflloner at Cooch-Bahar,
exclufive of the independent territories of the Rajah of
Cooch-Bahar.

The Dacca divifion might comprehend the city of Dacca
and the difl:ri6ts under the colle6tors of Sylhet, Dacca, Jelal-
pore, Mymenfing, Tiperah, and Chittagong.

The Patna divifion might comprehend the city of Patna,
and the diftricts under the colle6lors of Bahar, Shahabad,
Sarum and Firhoot, and the diftricts in Bahar under the
collector of Ramgur.

It might be proper, for the more efFedlual diftribution of

juftice, and to imprefs the natives more ftrongly with the

Part II, impor-

4^4 ■ O^ 1'HE BRITtSH GOVERNMENT

cruF. I, irTiportaBCc of thefe courts of circuit, that one of the puifii'C
The- purfivc j'^'^'^g'^s of thc luprcme court conducled and prefidcd in
juJ-e*. or them, tosether w'lih two covenanted civirl fervnnts of the

tl< jjjrtcs to ' o

be iipp-iiitcd Company, who had at leall: attained the rank of junior mer-
pliicf, to chants, aflifted by a Cauzy and a Mufti, If the judge
*our« u'a^'- lho»'^ "o^ fn^ni his duties at the Prefidcncy, be at all
**^ times able to make the circuit, that the fenior covenanted

iei'vant of the Company fo appointed ihould act as his
deputy ; but that one of the judges flioul d always be
named for this duty, and the reafon of his not difcharging
it be given to, and admitted by thc fupreme court of judica-
ture. The nomination of the covenanted fcrvants of the
Company, who are to a6l as judges of circuit, to be in the
Governor-general in Council, and a proper annual allowance
for this duty to be given them.

Koth to The judge of circuit or the deputies ought to be re-

take the oath . , i i r 11 • 1 i • 1 •

of office and quited to take the rollowmg oath upon his or their appoint-
fui difcSrge "^ent : " I folemnly fwcar, that I will truly and

©rtheirduiy; <t faithfully cxccutc the dutics of fenior (or junior) judge
" of the court of circuit for the divifion of

that I will adminifter juftice to thc beft of my ability,
knowledge and judgment, without fear, favour, pro-
mife, or hope of reward ; and that I will not receive,
dire6lly or indiredfly, any prefent or nuzzer, either in
money, or in cifects of any kind, from any party in any
fuit or profecution, or from any perfon whomfoever, on

*' account

*.<

AND TRADE IN THE EAST INDIES. ^-5

" account of any fuit or profecution to be inftitutcd, or ,f^^jj^

" which may be depending or have been decided in the

" court of circuit under my jurifdiftion ; nor will I, know-

*' ingly, permit any perfon or perfons under my authority,

■" or in mv immediate fcrvice, to receive, direftly or indi-

*' redly, any prefent or nuzzer, either in money or in

" efFe6ts of any kind from any party in any fuit or profe-

*' cution, or from any perfon whomfoever, on account of

*' any fuit or profecution to be inftituted, or which may be

** depending or have been decided in the court of circuit

*' under my jurifdt6tion ; nor will I, diredlly or indire*5lly,

"" derive any profits from my ftation, except fuch as the

" orders of Government do or may authorize me to receive^

«(

So help me God."

In the event of a breach of this oath, the judges of cir- To be ira-
euit ought to be liable to the fame penalties,, after trial: Jjlf^'^f^r"''^'
and fentence by the fupreme court, that the judges of the breach of ir.
fupreme court are, upon their being tried and found guilty
in England, by the committee of Parliament appointed for
the trial of Indian delinquents.

■In the courts of circuit there ought to be a^ Rcgifter Courts of
or an officer, to have the fame duties affigned. him, and to ^,',"^'i'J,.j"f,'^
take the fame oaths as have been enjoined for the Re- K'^s'^cr,
gifter of the Nizamut Adawlut.

Part IL Iir

426 OF THE BRITISH GOVERNMENT

CH.\r. I. It may be necefTary alio, that the Cauzles and Mufties,

—with Cau- aifling in thcfe courts of cu-cuit, fhould take the fame

ti'".*"'' ^^"^' folcmn oath that has already been dcfcribed to be proper

for the Cauzies and Mufties officiating in the Nizamut

Adawlut ; and that they (hould be renewed, as in that cafe,

every fix months.

Periods of j-^ j-j-j^y ]^q propcr that thefe circuits ftiould be made

the cuciiitj. •' ' ■■

every fix months, viz. that they commence on the ifl of
March and i ft of October in each year ; and that they
fhould proceed to the places of refidence of the mag ftrates
of the leveral diftricts within their jurifdiction; and re-
main, at each ftation, until all perfons committed, or held
to bail for trial by the magiftrate of that ftation, ftiall
have been tried and judgment given ; that is, till there
Ihall have been a complete gaol delivery.

Procedure In all cafcs of a civil nature, or in fuits for property, not

in civil cafes; exceeding the value of looo rupees, the decifion ihould be

final. In cafes of property above that value, appeals

ihould be open to the Nizamut Adawlut.

—in cviml- In cafes of a criminal nature, not amounting to felony,

«ai ca es. ^-^q fentence of the court of circuit ftiould be final, but when

amounting to felony, the cafe ought to be carried by

reference, to the Governor-general in Council, with powers

to him to pardon or to order execution.

AND TRADE IN THE EAST INDIES. 427

In thefe appeals or references, and in the decifions on sect. 11.

them, it ought always to be underftood, that the decree To report

iliould make a part of the quarterly reports which are to 5|'^'>"P'"0'-';^'l-
be fent to the Dire6lors and the executive government
in Britam.

When the Governor-general and Council, vefted Avith Executionsto
thefe powers, confirm the fentence and return it to the abietothr"
magiftrate of the diftrift, for execution, then the fame ufa^g's Vtifc
refpe6t fhould be paid to the religion of the criminal people
as has already been pointed out ; and, indeed, in the pro-
vinces, this will be more particularly neceflary, in order to
enfure the .obje6l for which the p.uniiliment is to be in-
flicted. ::-i- ■ " - i r ' ;

In order to keep- up the diftin6tion between the objects Conftitution
of civil and criminal courts, the Company's covenanted vinchi courts
fervants afting as inferior judges may be empower- °^''^^^""*-
ed, in the diftin6t capacity of revenue judges, after the
conclufion of the other bufmefs of the court of circuit, to
hear and decide on all matters of revenue which come by
appeal from the magiftrates courts in the different diflridts to
be immediately defcribed. In thefe provincial courts, two or
more of the native officers of revenue ought to be annually
appointed by the Governor-general, to a6l as afTefTors di-
refting and condudllng the fuit. The decifions of this
court ought to be ultimate, in all matters not exceeding
500 rupees ; but, in cafes above that value, the party
Ihould have the power of appealing to the Duan's court.

Part II. I i i It

ciS-

OF THE BRITISH GOV ERNKIEICT

CHAP. I.
' . — '

The fame
piiiioipli'i ot
la A to di'.ct^
die procced-
inj;s of thefe
courts, as
thofc which
form the rule
of judgment
in the Niza-
imit Adaw-
U:t.

It may be proper, that the fame rule ot law, and die
fame praf^licc in the a}:)pliciition of it be obferved in the
coui'ts of circuit, as already fpecified,. to be required ia
the Nizamut Adavvlut ; and it may be expedient, that
the j-udges of circuit be enjoined to report,, at the con-
clufion of each term, to the Nizamut Adawlut, the in-
flances itt \vhich the Cauzies or Mufties have been guilty of
mifconduct in the difcharge of their duty -y. that, as judges,
of ciicuit alfo, they fhould vifit the gaols at each ftation,
direct the magiftratcs to eive proper treatment and accom-
modation to prifoners, and report to the Nizamut Adaw-
lut every inftance in which it may appear to them that
the magiftrates have been guilty either of neglect or mif-
conduft. A part of the report ought alfo to confift of fuch.
propofitions as thefe judges of circuit may think calculated
for the better diftribution of juftice. If they fliall differ
in opinion, upon any one fubjedt, then the fenior judge
ought to have the cafting vote; and if, from ficknefs or
other accidents, one or more of thefe judges fhould not be-
able to make the circuit, in fuch cafe the duty fhould
devolve upon the remaining one^

Conftitiition
and jurif-
dii'tion of
the inferior
courts of ma-
jilt rales.

' It is propofed, in the lafl places to efbablifli inferFor
courts of magiflrates in the diftridts into v. hich tlie col-
lc(5lions of the revenue are divided. It is hardly pof-
fible to fix upon any other rule of marking out the limits-
of fuch inferior jurifdi(ftions, than tlie limits of the coU

^ k6torihips>

AND TRADE IN THE EAST INDIES. 449

leclorfliips, except in thofe places which have ah'eady been ^ECT. !i.
fpecified as the feats of the courts of circuit, \iz. Moor- '

fliedabad, Patna, Dacca and Calcutta.

The fame rule of law which is obferved in the Niza- P''"9?'<^*

. . and tonus

mut Adawlut, ana in the courts of cnxuit, ought necef- upon which
farily to become the rule of condu6t in thefe inferior or in"^thc'ir"dif-
provincial courts. It is more difficult, however, to chalk *':'■''■''' '''*^^'

•T . ' ' Cities, are <a

out a conflitution for thefe^ petty courts, than it was for F"»-"C'-J-
either of the fuperior courts. It may be laid down as
a fixed principle, that thefe inferior courts fhould a6t in
the feparate capacities of civil and criminal, and as a
branch of the Duan's court, or a court of revenue, and it
may be underftood, that in all cafes where appeals are
competent, from the courts of magiftracy adling in the
two former of thefe capacities, to the courts of circuit,
or ading in the lad of thefe capacities to the Duan's
court, that the fame procedure and forms fliould be
obferved, as in the fupreme courts; that is to fay, the
rules and forms in civil and criminal cafes, as in the
Nizamut Adawlut, and the rules in cafes of revenue, as
in the Duan's court.

A DIFFICULTY hctc occurs as to the perfons who may be '^^^ '•o'-

, -r, T-. 1 . , , ledors to be

competent to become magiltrates: rrom the mixed cha- the judges in

rader of the inhabitants, from the mixed nature of the fo- mayibacy,"*

vereignty, and from the real power being in the fervants of "'\^'-:v;^"»'n
the Com})any, it may be impradicable to find any but their
Part II. ' I i i 2 fer\ ants,

430 OF THE BRITISH GOVERNMENT

CHAP. I. fervants, who can be veflcd with the office of inferior magiC-
trates. All, therefore, that can be done, in order to make
the plan of jurifdiction in the courts of magiftrates, as
much in unifon with that in the fupcrior courts, as the
nature of the cafe will admit, is to enact, that every Com-
pany's fervant, who fliali attain the office of a collector,
muft have been of a certain Handing in the fervice, viz.
have acquired the rank of a fa6tor or junior merchant, and
it may be made a qualification of office, that he fliould
have attained a competent knowledge of the regulations,
which have already been pointed out to be the proper
rule of condu6t in the courts of circuit, and in the Duan's
court. It is not indeed to be fuppofed, unlefs a colle6tor
fhall have attained to fuch competent knovvrledge, that he
would chufe to come under the obligation to which his
taking the neceffary oath would fubjetSl him. The form

of the oath is as follows : "I A. B. collc<5tor and judge of

and entrufted as magiftrate with

fouzdary jurifdidtion, do folemnly proraife and fwear,

that I will exert my beft abilities for the prefervation

of the peace of the diftri6ls, over which my authority

extends, and will a6t with impartiality and integrity,

** neither exacting or receiving, directly or indirectly,

*' any fee or reward in the execution of the duties of

** my office, other than fuch as the orders of Governr

'' ment do, or may, authorize me to receive. So help me

" God.'V

Though

AND TRADE IN THE EAST INDIES. 431

Though it is propofed, that the colleclor fliould him- SECT. 11.
felf act as judge or magiftrate, it will be neceffary for the Maglftrates
uninterrupted diftribution of juftice, that the fenior civil toJ»aveade.
fervant of the Company, a6ling under the colIcvStor, fliould
be his deputy, and that both fliould be vefled with powers,
fomewhat analogous to thofe of a juHice of peace and
fheriff in England ; that a fimilarity in confl:itution to
the fupcrior courts may be preferved, it will be expedient
that a Canongoe and a Pundit be appointed, with firailar
powers and duties with thofe enjoined them in the fuperior
courts, and under the like correfponding oath, agreeably
to their religion, with thofe v/hich have already been
marked out for the Cauzies and the Mufties. As the duties
of the magiftrate will require inferior officers to enable
him to difcharge them with cfteft, the rule of condu6t for
thefe officers will be the regulations fpecified for the
adminiftration of juftice in the fouzdary, or criminal
courts."*

The duties of a colleclor or magiftrate feem to be as Exfentof
follows : In his civil capacity he is to judge of all mat- lioVand du-
ters of property under one hundred rupees, without ap- "esofmagif^
peal ; and if required he is to report the appeal with
the reafons of it, to the court of circuit, Ihould the pro-
perty be above that value. In his criminal capacity, he is to
ifTue warrants for apprehending murderers, robbers, thieves^

* See Regulations page 11 — 19. Calcutta i/gfc.

Part II. houfe-

431 OF THE BRITISH GOVERNMENT

CH.^J*. I. honfebrcakers, and other difturbers of the peace; whcu a
complaint is preferred to him again ft a pcrfon for any of
thele crimes, he is to oblige the party complaining to make
oath as to the fact, before he iffue his warrant; when the
prifoner is broi'ght before him, he is to examine the
circumftances of the cafe, without oath; if it Iliould then
appear to him, that the complaint has been groundlefs,
he is to order the immediate enlargement of the priibner;
if it appear to him on the contrary, that, from circum-
flances, the crime charged has been committed, then he is
to commit the accufcd to priion ; and if it be a petty lar-
ceny, not cognizable by the court of circuit, he is to bring
on the trial at the next regular meeting of his court; after
hearing the accufation, he is to direct the Canongoe or
Pundit to adminiftcr the oaths to the witnefles, according
to the forms of their religion, and then decide agreeably to
the regulations which have already been fpecified; if the
offence with which the prifoncr is charged Ihould be
abufive language, calumny, petty aflaults, or affrays, he
may decide from the circumflances of the cafe ; and, in
his capacity of a juftice of the peace, order a coporai pu-
nifhment, not exceeding fifteen rattans, or* imprifonment
not exceeding the term of fifteen days. In all cafes of this
defcription, regard ought to be had to the religious preju-
dices of the people,

•

Every magiftrate, upon receiving information from
the judges of the courts of circuit of their intended arri-
val at his ftation, lliould give public notice of the fame

AND TRADE IN THE EAST INDIES. 4J3

in all the dii'tri^b under his charge, by a written publica-
tion, a copy of which iTioulJ be forwarded to the Cauzie or
Canongoe of each Pergunnah, with orders to have it affixed
in fomc public place, in two of the principal towns or vil-
lages in his diftri6f ; and he fliould require all perfons
difcharged upon bail, and all profecutors and Avitnefles to
appear, and to attend at the date fixed for the arrival of
the court of circuit, under pain of forfeiture of their recog-
nizances. The provincial magiftrate ought alfo to be in
readinefs to deliver to the judges of circuit, upon their
arrival at the place of his refidence, a lift of all the perfons
committed to prifon, or held to bail for trial, with copies
of the charges preferred againft them, thfi depofitions of
the witnefTes, the proceedings previous to the commitment
of the prifoners, or holding them to bail, and an accouiit
of the execution of the fentences which have been recom-
mitted to him by the court of circuit. It might be proper
alfo, that this laft part of the report fliould fpecify, that
fuch executions have been done, with a due regard to
the religious prejudices both of the criminal and of the
fpedators. In order to render the information of the court
©f circuit as full as poffible, it may be proper that he fliould
make a report of the cafes, in which, from want of evi-
dence, he has been obliged to difcharge prifoners.

It muft frequently happen both from- the characters of"
the lower orders of the people and from the animofity fo.
prevalent in India among the natives, from difference of

Parx II.. religion.

SECT. U.
« . *

434

OF THE BRITISH GOVERNMENT

CHAP. I.

religion and ufages, that complaints of a groundlefs and
vexatious nature may be brought before a migiftrate. It
is therefore neceflary, that he fliould be veiled with power
to punifli the perfons who may bring forward a falfe
accufation, by a fine or imprifonment, or by corporal pu-
nilhment, proportioned to that which the accufed would
have fufFered, if he had been found guilty of the offence
with which he had been charged.

Complaints before the courts of magiftrates mufl fre-
quently be made by natives, agalnft Britifh fubjects. If,
from the circumllance of the cafe and from evidence, the
magiflrate fliould find them to be founded, he ought to be
empowered, by his warrant, to fend the perfon or perfons
to the Prefidency, for trial before the Supreme Court of
Judicature. But if the complaint fliould be made by one
native again fl another, and the breach of the peace be
fuch as to lequire a punilliment greater than by the
preceding reflriCtion he may be authorized to inflict, he
may then commit him for trial before the next circuit
court.

Procecd-
inq;s of magif-
t rates to be
matters of
recofd.

In regulating the proceedings of fuch courts of magif-
tracy, all trials (thofe of a petty kind, which have already
been fpecified, excepted) fliould be matters of record both
in Perfian and Englilh, and be forwarded monthly to the
Regifler of the Nizamut Adawlut, fpecifying the name of the
perfon, the date of his imprifonment, and the iffue

•* whether

AND TRADE IN THE EAST IxVDIES. 4;^

whether the perfon has been fcnt for trial to the court of ^sect. u.^
circuit, or puniflied by the authority of the magiftrate him-
felf. The form for this report may be taken from the regu-
lations already jeferred to ; or may be a report, fpecifying
a lift of prifoners confined under fentence; of perfons on
whom fentence has beenpaffed by the couit of circuit ; of
prifoners tried, and their caufes referred to the Nizamut
Adawlut in former months, and in the preceding month ;
of the fentences of the Nizamut Adawlut carried into
effect in the preceding month upon former references ;
and of prifoners under the magiftrates charge, and who are
left for trial. With this lafl; it may be proper that the
magiftrate fhould fend a particular report of his having
vifited the gaols, at leaft once every month, and redreffed
all complaints of ill treatment which may be preferred to
him by the prifoners againft the gaoler, and other officers
having the charge of them ; with the ftate of the gaols
themfelvcs, in refpeft of cleanlinefs, feparate apartments for
prifoners under fentence of death, for perfons fentcnced to
imprifonment by the court of circuit, for perfons committed
to trial before this court, and for perfons under his own
fentence for petty offences; with a certificate from the fur-
geon of the ilation upon the whole of thefe lafl fubjecls.

It muft frequently happen to thefe provincial magiflrates, Hon- ma-
that complaints maybe brought before them agiinft Zc- To proceed"
mindars, Chowdries, &c. and the Subordinates allowed to ^f-'"?'^^'^,'

inmuars, kc.

aft under them by the preceding plan of government.
Part II. K k k In

436 OF THE BRITISH GOVERNMENT

CHAP. I. In cafes of this kind, the mode of apprehending the Zemin-
dar, &c. the quantum of fine which can be levied upon him,
and the kind of punifliment which his rank or cafl will admit,
will require to be minutely fpccificd. In the fpecification
the preceding rule of fubjecting the falfe accufer to the
puniflimcnt which theacculed, if found guilty, would have
fuffered, may be held as an expedient meafure ; that is to
fay, the fine not to exceed 50 rupees, where the party is
neither a Zemindar, Chowdry, nor Talookdar, paying an
annual revenue of 10,000 rupees; or a polTcfTor of ayma
lands paying a rent to Government of 500 rupees per ann.
or of free land yielding an annual produce to the value
of 1000 rupees ; and the fine, on the feveral perfons, de-
fcribed under this exception ought, in no inftance, to ex-
ceed 200 rupees. In apportioning thefe fines, tlie magiftrate
ought to be left to judge, from the nature of the offence
and the quality and wealth of the offender.

From the nature of their office of collectors, thefe pro-
vincial magiftrates muft neceffarily a61; as judges in matters
of revenue. In this cafe, as little room fhould be left, as
polTible, for oppreffion or injuftice ; and it might be expe-
dient to introduce a diftinclion between the revenue cafes
which cannot, and which can be appealed from by the parties.
In cafes below 50 rupees, the decifion of the colIe6tor
might be made final, but he ouglit to be obliged to make
fpecific reports of fuch decifions to the Governor-general,
acting as Duan. In matters above 50 rupees an appeal ought
^ to

AND TRADE IN THE EAST INDIES. 437

to be competent to the Duan's court, with powers to It, ^sect. ir.
upon confidering the reafons, either to decide immediately,
or to order the party to bring on the trial.

Such feems to be the line of judicial procedure fuited to Result of the

•* . ' _ ^ _ whole of thii

the Bengal provinces, and allowing for difference of cir- iVftem of ]-a-
cumftances, the fame plan may be extended to our fettle-
ments on the Coromandel Coaft, or to our recently acquired
dominions on the Malabar Coaft. Such a judicial po^^er
feems neceffary for the eftablilhment of the fovcreignty of
Britain in India, the natives are entitled to it by the mod
folemn treaties ; they underftand it, and have been habituat-
ed to hold it as perfe6t. Were we to take from their ac-
knowledged chiefs all apparent judicial power, we, in fa6t,
fhould diveft them of the moft ufeful branch of their
remaining authority : whereas, by leaving to them the re-
commendation of the native judges, who are to officiate
in the Nizamut Adawlut, or in courts of circuit, we con-
tinue their princes, in the eyes of the natives, as their
natural protectors a6ling in concert with the BritiHi Go-
vernment, for the general fafety and happinefs of the
inhabitants.

Though the preceding obfervations feem to comprehend ^ p^''" '«-

. . . - quired tor

the general regulations which the eftablifliment of the judicial our Afiatic
power in India feems to require, both by keeping in view the
precife objects of law, viz. property, life, and revenue ; and
though they have been accommodated to the practice of the
Part II. K k k 2 feparate

poflelfions.

,Q OF THE BRITISH GOVERNMENT

CHAP. I. feparate courts, which are to judge of cafes of each of thefc
' ' ^ kiiuls, there ftill remains a very interefting fubjedl ; the
introckiction of a pohce, which (liall be conformable tO'
the chara6lers of the Britilh or native iubje6ls ; and yet
fhall quadrate with the plans of government and of juril-
diaion, which have been dchneated in the preceding
Iketches.

It is a fa6V, in the hiftory of jurifprudence, that degrees
of the intermixture of law and of police, which takes
place in the early periods of civilization, have among po-
lifhed nations been allowed to continue, after laws and law
courts have reached their grcateft ftate of perfection. It i$
obvious however, that unlefs the diftinft objeCls of police
and of law be marked out, the one may be a fource of
oppreffion, and violence be poffible to the other.

The obie6l of police is to dete6l and prevent the commif-

Separate •' ^ r i • • l • i

objcfts and fion of wrong : the object of law is to examine, by evidence,
poUce^andof whcu a wrong or crime has been committed ; and by pu-
'^"'' nifhing the offender, to iraprefs the fubjects of any country

with ideas of the fafety which they derive from the jufticc
as well as the power of their fovereign. Police then refers
to the manners of a people ; law, to their rights whether
of life or of property. The principle of the one is juftice;
that of the other is propriety; or that rule by which
good order and decorum are kept up in the intercourfe of
civil fociety.

i Taking

AND TRADE IM THE EAST INDIES. 43-^

Taking then the principle of propriety as the bafis upon sect. if.

•^^hich every plan of police ought to reft, and particularly a The ofKccr

plan for our Afiatic provinces, the firft pra6tical rule which h^^,.^"''" ^"^

we can draw from it is, that the officer of police in India po«frot pie-

fhould only have the power of watching over the condudl detecting

of the Britifli or Indian fubjefts towards each other, lb as crlmeT but

to prevent anarchy or iniuftice, but not the title to judge of ""^°* Vf"S

■* . J ° or pimilhing,

wrongs, or to punifh them. If he lliould have the power them.
of judging of wrongs, he immediately becomes the accufcr,
as well as the judge ; and if his decifions fhould not be
directed by any rule, but his own fenfe of propriety, that
fenfe might, in ibmc inftances, neither be very vivid in it-
felf, nor very pure in the pradice to which it mi'ght lead.

The next practical rule Is, that the police muft extend The diver-
over all the Britilh fettlements. This rule arifes from the ^''^^'J""'^.'

and pnvi-

a<5tual ftate of the inhabitants in the Britifli provinces, and leges of the

from the intercoufe which the different claffes of people requires, that

muft have one with another. The inhabitants confrft of the 2erm«dUkTu

Hindoos, or the aborigines of the country; of theMahomedans 1'°"'' "'""''*

° . ■' be made cni—

who conquered it fome centuries paft ; of the emigrants from "ent.
the different eaftern countries, who ftill conftitute dift'n£l:
orders or claffes of men (fuch are the Armenians, Malays,
&c. the defcendants of the firft European adventurers, par-
ticularly of the Portuguefe, Dutch, &c. fpeaking a language-
of their own) ; of the fervants, civil and military, of the Eaft-
India Company, cxercifmg commercial and fovereign powers ;
of the free Britifli inhabitants; of the fervants of the other
European companies in factories in the bofom of our iettlc-
Pajit II. mcnts,

440

OF THE BRITISH GOVERNMENT

CMXP. I.

mcnts, and with a right to obfcrve the laws of their o\Vn
countr'es in the!'e factories; and, laflly, ihe motley group of
deferters from the trading vcflels of Europe and America,
who come out under no protcftion and cannot be preiumcd
to be regulated by any other notions than thofc of felf-inte-
refl and of efcaping with booty.

It mufl occur from the very lift of the names of fuch
different clafies of mankind, oppofite to each other in their
original prejudices of rehgion and of manners, oppofite in
the powers which they poflefs, and in the interefls which
they purfue ; and oppofite, coniequently, in the fenfe of
character which they may be induced to afTume, that ir-
regularities and the defire of doing injuftice to each other
muft be frequent, if not general. In vain then will the
Britiih Icgiflature ena61: laws, and eftablilh law courts, with
the objects of promoting the fatety and happinefs of our
Afiatic fubjefts, if it docs not at the fame time introduce
fome plan of police, which might render an appeal to law
courts lels frequent, and' for that very reafon more effectual
and refpe«5lcd by the inhabitants.

Progrefs of
police in
Hindooilan
among the
Hindcos ;

The laft rule which we have to obferve on this fubjcd
is, that we muft accommodate police to the cuftoms of the
natives. This rule arifes from the hiftory of police in Hin-
dooftan, both before we acquired our territories, and fince
we have made fome efforts to improve upon the ufages of the
people. Under the Hindoo government it appears, that the
Zemindar was an officer of police, but that it was only when
Part l.I he

AND TRADE IN THE EAST INDIES. 441

he exercifed jurifdiction as a part of the zemindary cut- SECT. ir.
cherry, that he adted as a magiftrate inflicSling punilhment ;*
the meaning of which feems to be, that he had the
power of preventing affrays, of compelling the inha-
bitants within his di(lri6l to conform to the eftabhfhed
cuftoms ; and, in cafes of difobedience, of bringing them
before him, or of carrying them before a higher law court,
to be tried and punilhed as violators of the peace.

Under the Mahomcdan government, it appears, that the —Under the
Darogah had power to imprifon, when he a6led in his ca- vemmenfr
pacity of a police officer, but not to punilli. Aurungzebe
directed that the Darogah might make peace between the
parties ; but, if he could not fucceed, that he fhould make
afooruthall, and carry the cafe before the Fouzdar, the
Nazim, or the Emperor himfelf f

When the Eaft-India Company eflablithed themfelves —Under the
as participating in the fovercignty of the Bengal provinces. Company!
one of the firlt circumftanccs which required the attention
of the Prefidency of Fort William was, the neceffity of
eflablifliing fome rule or ordinance for the better manage-
ment of the police in the town of Calcutta, and in the
diftricls included within its limits. From the encreafe of
the Company's trade in this capital, as well as from the
prote6tion which the Englilh Government atfordcd it, the

* Lord CornwaHis's Letter, 6th March, 1788.
-j- Bengal General Confultat'ions, iSitli Dec. 1785.

Part II. , influx

i^<r'

OF THE BRITISH GOVERNMENT

tww. \.

InfluK of inhabitants from all parts of Hindooflan hai
become very confiderable. As many of thefe ftrangcrs had
merely gone to India as adventurers, and without any plan
of excrcifing their indufbry — murders, robberies, burglaries^
^vith the crimes of ftealing and fwindling had become fre-
quent, and required the interference of the fovere'gn power.
In particular, the facility with which jewels, gold, filver,
plate, and indeed all commodities of a fmall bulk, could be
dilpofed of, had made the temptations to commit thefe
crimes fo ftrong, that the interference of the police was uni-
vcrfally called for.

Pnlire efta-
bliflinient of
'773'

The Governor and Council, therefore, upon the au-
thority of the aft 1773, eftabliflied an officer, under the
name of Superintendent of police, and placed under him
a Mailer of markets and a proper watch or guard. This
Superintendent was to have a falary, was to make his tranf-
a£lions matters of record, and to fubmit them to the Go-
vernor-general and Chief Juftice ; he was to have the
power of bringing before him, by his officers, perfons
charged with felonies, committing them for trial, and of
judging immediately, by himfelf, of petty larcenies under
the value of 10 rupees, or of fimple alTauIt and battery
where no great injury was fuftained, and of puniQiing by
imprifonment for one month; of ordering the culprit to be
placed in the flocks, or to be beat with a rattan, or to
be ftruck with a flipper, to the extent of thirteen ftrokcs.
He was limited, however, in the punifhment of Dekoits,
whom he was only to imprifon, and who were to be tried

ANDTRADEINTHEEASTINDIES. 443

by a court cf criminal jufllce. He was to enter his tranf- sect. ir.
anions into a book and to lay them before the Governor-
general and Chief Juftice, annually, on the ift of May and
I ft of November; he was to give a lift of the Europeans
and fliop-keepers refident in Calcutta, obHging the latter to
keep day books, into which they were to enter fales and pur-
chafes, particularly of watches, jewels, &c. He was to pre-
vent their melting down or defacing gold or filver till after
it had been a month in their pofTeflion ; and to have the
authority to profecute them as receivers of ftolen goods, if
either their lifts were imperfecSt, or if gold, jewels, Sec.
fhould be found for fale without his licence, or defaced
with a fraudulent intention ; he was to be vefted with the
power of levying fines for breaches of the peace, and in cafe
the diftrefs which he decreed did not enable him to recover
the fine, he was empowered to commit the offenders to
prifon.*

The confequence of this ordinance was, that the Su-
perintendents of the police a6led in an oppreffive manner ;
complaints were brought againft them before the Supreme
Court of Judicature, this court condemned their proceed-

* It appears from a minute of the Governor-general, that the Prefident and Council,
on the 21ft Auguft, 1772, found y^at the Fouzdary courts, eftabliflied in each diftrift,
had always intermixed the exeicife cf their criminal jurifdi£lion with their tranf-
aftions as officers of police ; a circumftance which gave them an opportunity ofop-
preffing the inhabitants.

Part II. L 1 1 ings ;

444 OF THE BRITISH GOVERNMENT

CHAP. I. ings ; and His Majcfty, upon the ordinance and its effeds
being reporled to him, difallowed the whole.*

Police efta- Though this fvftcm "^vas laid afide, it was found expis-

bhflimentof . . ■" . . '^

1784. dient to eflablifli another. The formation of it was recom-

mended to the Governor-general and Council, who were
enjoined not to exceed the fubordinate powers of legiflatiort
with which they were vefled ; and to take care that no
unwarrantable power fliould be given to the Superintendent.
Accordingly a regulation of police was publithed in the
Supreme Court of Judicature, on the 3d of May 1784, and
a rate laid upon fliops, lands, &c. for the fupport of Com-
miflioners of police ; the produce was to be applied to the
improvement of roads, paffages, &c. Surveyors for this end
were named, and the' Superintendent of police, his Deputy,
and Subordinates, prohibited from exading fees contrary
to the rates allowed in the ordinance t-

Still, however, this plan of police was found dcfeclive,
and improvements from time to time have been propofed

* Bengal General Confultatlons, 17th June, 1785, in which a copy of Hij
Majcfty 's warrant of difallowance is inferred.

-j- Extrad of Bengal Confultations, 26th July and iid Aiiguft, 1784. It is
prefumed, that the power of the officers in Eiigfand muft have been foniewhat of
this kind, as the common law gave him no authority of Judging or punifhing ; aJ-
though a juftlce of the peace has in more modern times been vefted, by ftatute, with
authority in fome particular cafes, and for fome petty crimes, and ' upon the accufa-
tion ot others, to determine and punifh the offence by Rae or imprifonmcnt to a liaiited.
extent.

for

AND TRADE IN THE EAST INDIES. 445

for corre6ting them; fuch as, a regulation that fervants sect, ii-
were not to be permitted to leave the fcrvice of a maf- Recent im-

•1 •• c ^ • n- -iri-i provcnient

ter without receiving rrom him a teltimonial or their cha- ii})..nthii

racter; a regulation to fpecify the rate of wages, &c. and ^""'*'

yet, after all, it was the opinion of Sir William Jones, in

a cafe brought before liim for oppreffion by the police?

*' that the power ofpunifliing, excrcifed by the fupcrui-

" tendent of the police, was a deformity in the government,

*' and that the fuperintendents of police ought only to have

*' the power of apprehending ofiendcrs, not of punilliing

"■ them."*

These circumflances open to us the reafons which' in- pia„ of police
duced the Governor-general and Council, in 1788, to at- I'^F''"';'' by
tempt the providing of fome fuitable remedy for the defects norgenerai,
of the police of Calcutta and its limits. They found that
farther powers mufl: be veiled in them, folely or in con-
junction with the fupreme court of judicature, for the
purpofe of bringing about an end of fuch public impor-
tance ; and after fpecifying that the prefent fyfbem of a
fuperintendent had been infufficient to protect the in-
habitants in their pcrlons or in their property, and that
the evil might be traced to the old jurildiction of the
Zemindarj'-Cutchery, which exercifed a power of hearing-
and deciding, fummarily, caufes both of a civil and criminal
nature, and tliat this practice was contrary to the laws of Eng-

* ExtraiSt of Bengal General Confultations, 26th IMarch, 1785, and 13th Ja-
t\uary, 1786.

Part II. Lll 2 land,

&c.ia 1788.

446 OF THE BRITISH GOVERNMENT

CHAP. I. Jand, and could only be juftiiied upon the principle of necef-
fity; and (hewing, that this neceffity arofe from the fmall
number of magillrates, who, under the prefent law, were
able to fulfil the duties of police officers; and pointing out
the incompetency of the court of requcfls to difcharge the
duties required of it; they fuggcft, as an obvious and natural
remedy, the cncreafe of the number of magiftrates, and the
extenfion and emendation of the inftitution of the court of
requefts. If the former meafure Ihould be adopted, they
gave it as their opinion, that courts of criminal jurifdidlion
fhould be oftcner held, and the interpofition of the legal
power of a juftice of the peace be daily and regularly re-
forted to. If the latter fiiould be complied with, and com-
petent falaries be allowed to the members of the court of
requefts, the inhabitants in general would have eafy accefs
to juftice, in caufes of a trifling value, and not be burdened
with the expenfe of fuits in the fupreme court of judi-
cature.

AMances ' The Governor-general and Council therefore, propofed
reliHntThis ^^ limit thc powers of diftributing juftice in the court of
plan, from jenuefts to cafes under one hundred ficca rupees ; — that

new model- ■'■ ' , .....

ing the court it ftiould take cognizance of contracts and civil injuries,
ot requc s. .^^j^gj-g ^]^g demand did not exceed three hundred ficca ru-
pees, in a way fimilar to what is called trial by civil bill,
by the juftices of aflize in Ireland ; but that, in thcfe cafes,
one of the judges of the fupreme court fhould prefide in ro-
tation. They next propofed an alteration upon the ftatutc

1 6 Geo. III. cap. 63, in order to enable them to form regu-
^ lations

ANDTRADEINTHEEASTINDIES. 447

lations applicable to the police of Calcutta, though fuch SECT. il.
regulations might not be perfc6lly coincident with the laws '

of England. They propofed alfo, that the juftices of peace
fhould be fele6ted from the principal inhabitants of Cal-
cutta, and not nominated in England ; that a power
fhould be given to thel'e juftices, of regulating and licenf-
ing houfes where liquors are fold in retail, and of
lupprefTmg thofe which fell fpirituous liquors to the
detriment of the inhabitants ; that a coroner fhould be
appointed for Calcutta, and that the limits of the town
of Calcutta fliould be extended, agreeably to a plan
which they tranfmitted ; that the admiralty jurifdic-
tion granted by His Majefty's charter of 1774, fliould
extend over Bengal, Bahar, and Orifla, the iflands belong-
ing to them and their dependencies, and be applicable not
only to the fervants of the Company, but to Britilh fubje6ts^
in general ; that the admiralty court lliould have the power
of infli61ing death, as well as of levying fines, fince the
interpretation of the charter, 13th March, 1761, had, in.
fo far as regards the trial of piracies, been a matter of
difficulty and doubt. To remedy thefe evils efFe6luaIly, they
recommended, that a power fnould be given by a6t of parlia-
ment to the fuprcme court of judicature, to try all treafons,,
murders, piracies, &c. and all fuch offences as are ufually
puniflicd by maritime law : and of giving judgment and pro-
ceeding to execution in maritime capital cafes; and that
this power fliould extend to all places within the Com-
pany's limits. It would be expedient alfo, they concluded.
Part. II. to

^^8 OF THE BRITISH GOVEP^NMENT

CHAP. I. to authorize it to judge in prize caufcs, though this power
would require lome alteration in fubfifting treaties.

— iVomanaa, TiiE Governor-general and Council, in recommending this
for the relief fyftem, poiut out thc neceflitv of obtaining a law for the relief

ofinfolvcnt J ^ I J ^

<^.ebtorj. of infol vent debtors. As the law flood, an obdurate creditor

might retain a perfon in prifon for life; they therefore recom-
mended that the fupreme court of judicature fliould be veded
■\^ith a power, concurrent with that of the court of re-
quefts, for difcharging infolvent debtors. To the whole
of thefe obfcrvations they fubjoined, propofitions refpefting
the adminiftration of juftice in Prince of Wales's Ifland, or
in fuch fettlemcnts as may hereafter be made dependencies
upon the Company's poHlfTions, where the law ought to
apply to the whole inhabitants *.

— ol.jeaions I'^ muft, at firft view, occur, that a fyftem of police
maJe to the f^iould havc no dependence upon any of the branches of

principle 01 1 1 y

this bill, jurifdi6lion; but, on the contrary, IhouKl be Separated en-
tirely from them and kept to its proper obje<51, viz. the pre-
vention of the wrongs or crimes of which the civil or cri-
minal courts of a fupreme or fubordinate kind are to take
cognizance. It mufl occur alfo, that, in foreign and dif-
tant fettlements in which the Company's fervants and Bri-
tifli fubjc6ls, in general, form but a very fmall number of the
inhabitants, and yet have the exercife of the fovereignty

* General Letter from the Govcrnor-genei-al and Council to the Court of
Divcdtors, dated 6th of March, 1788.

5 delegated

.AND TRADE IN THE EAST INDIES. 449

delegated to them, it would be difficult to find peifons SECT. n.
capable of exercifing the duties of police officers, who did
not, at the fame time, fill the office of magiflratcs in the
inferior courts. The fundlions of thefe different offices
might be fpecified, and the duties of them completely fepa-
rated. This, perhaps, is all that can be done, in a fitua-
tion where the inhabitants have fuch oppofite chara6lcrs
and prejudices, and yet are intimately connedled together
by the nature of the government to which they are fubjeded.
If the Company's fervants, from the commercial bufinefs
which is put under their management, and from the neceffity
of their a6ting as magiffrates, within the limits of their dif-
ferent colleftions, have neither time nor opportunities fuffi-
cient to enable them to exercife the duties of police officers ;
and if the free Britilh inhabitants, or even the natives of
chara6ter and credit might be entrufbed with the fubordinate
offices of police, then officers of police could eafily be found.
Upon the idea that the whole of the police was under the
immediate controul of the Governor-general and Council,
and that a Company's covenanted fervant under their ap-
pointment, was to a6l as a juftice of the peace, it might
be expedient, and, perhaps, for the general advantage of
the fettlements, that the inferior officers of police lliould
be natives. The propriety of this meafure \y'\\\ totally depend
upon the feparation of police courts from law courts, and
affigning to the one the prefervation of the peace, as its fole
object, and to the othei», the trying andjudging of wrongs or
crimes, as then" proper duty.

Part II. Taking

45^

OF THE BRITISH GOVERNMENT

CHAP. I.
^-z — '

Mode of cila-
blifluag re-
giiianons of
police, coin-
cident with
the plan of
government
and of courts
of jufticc.

Taking, therefore, the advantage of the whole of this
information, it is propofed, in the firfl place, that a plan
for regulating the police of our fettlcments lliould be efla-
blifhed, by the joint authorities of the Governor-general,
reprefentlng His Majcfty, and of the native Princes ading
as our allies or our dependents; this meafure might take
place upon the fame principle with the regulations which
have been fuggeftcd for the improvement of the judicial
power. Upon this fyftem, all regulations of police fliould be
fubmittcd by the Governor-general and Council, or Prefidents
and Councils, to the fupreme court of judicature, with the
conlent of which, after they have been promulgated twenty
days, at the feats of government, and fixty days in the pro-
vinces, they (liould be held to be in force, liable only to revi-
fion and to approbation or difallowance by the King in
Council.

Propofed
conilitution
of courts of
police, for
all the Allatic
pafletCont of
Britain.

It is propofed in the fecond place, that at each of the
feats of government, there fhould be a Superintendent-ge-
neral of police, to be nominated by the Governor- general at
Calcutta, and the Prefidents at Fort St. George and Bom-
bay ; that he fhould have under him a Deputy, Regifler,
&c. and a Deputy at each of the feats of circuit, viz. Moor-
fhedabad, Dacca, and Patna, &c. that the Deputies fhould
have power to appoint in each of thefe places, with his
approbation, from among the principal inhabitants, whe-
ther Britifh or Native, fubftitutesof police and conftables to
aid in preferving the peace.

AND TRADE IN THE EAST INDIES.

451

It is propofed, in the third place, that a certain rate sect. ii.
fhall be paid by houfeholders, in proportion to their rents. Means of
for the fupport of this pohce eftablifhment ; and that all ^^1?/^"^/'''
fines or forfeitures, which may be levied on parties for po^'"-
breaches of the peace, fhould be paid into the fame fund •
as the rates above fpecified, viz. to the Superintendent-
general of the police, who fhould make monthly reports
of the amount to the Governor-general or Prefidents and
Councils, Out of this fund the Governor- general, or the
Prefidents, fhould have the power of paying the falaries to
the magiflrates of police, and allowances to officers em-
ployed in the prefervation of the peace ; that the Superin-
tendents of police fhould take an oath of truft, and againlt
receiving prefents or bribes under any fpecies of defcription,
and be liable for a breach of this oath to a profecution for
perjury.

It is propofed, in the fourth place, that the obje6ls and — Objefts
duties of the Superintendents of police, and their Subor- the officers of

dinates, fliould be, to make up lifls of all flrangers, whether
European or Afiatic, and to give an account of the manner
of life, trade and conduct of each ; to regulate the markets,
in the cities, towns, or diftricts, under their jurifdi6lion,
with the view of preventing all fchemes of forcftalling or
engroffing the neceffaries of life ; to receive information re-
fpe6iing any theft, murder, robbery, or other crime, which
cither may be apprehended or actually committed, and to
bring the parties into fafe cuftody ; to quell all affrays or tu-
mults, and to fecure the principals or ringleaders, that they
Part II, Mmm may

police ;

.45i OF THE BRITISH GOVERNMENT

^CH\p. i.^ inj^y be brought before a court of juflice ; to prevent all
\iolent interferences between the" followers of the different
religions, authorized and tolerated in the Britilh provinces ;
and particularly to prevent every fpecies of infult, or abu-
five treatment by the Britifh fubjeifls (in the fenfe of that
word, already explained) being given to tlic natives while
exercifing their religious ceremonies and forms, whether
thofe of the Hindoos, Mahomedans, or other tolerated
fefts ; to hear all complaints for abufive language, batteries
or affaults, and to take the parties into cuftody ; to di-
re£l at all executions in aid of the executive officers of the
courts of juflice ; and, in fine, to watch over and to con-
troul the inhabitants in the intercourse which they
may have in the affairs of trade, commerce, &c. in par-
ticular, to check, as much as pofTible, all frauds, Iwind-
ling, &c.

In the exercife of thefe duties, the police officer ought
to have the right, (in cafe it may be neccfTary to exercifb'
it,) of calling in the affiflance either of the Company's
troops, or of thofe of the Nabobs, or native Princes ; but
ihould be anfvverable for the orders he may give to the officer*
or commanders of fuch parties, who are only to carry them,
into efFefl. '

— Formsof It is propofcd, in the fifth place, that the conflitution,
fhTcoiutsof forms of procedure, and powers of the courts of police-
^''"' fliould be, as follows : the Superintendent, his deputies, or

their fubftitutes, fhould ifllie warrants for feizing perfons

AND TRADE IN THE EAST INDIES. 453

guilty of a breach of the peace ; thefe warrants lliould SECT, 11.
authorize the officers of the police to biing the party be-
fore the Superintendent or his deputy, who, after examining
the circumftances, (without oath) lliould make his report
to the mag^ftrate, eilher that the party merits a punilli-
ment not exceeding fifteen days imprifonment, or twenty
rattans in the pubHc market-place ; or that the offence or
crime , which has been committed, is fuch as to be cog-
nizable by a court of juflice. In order more completely to
render the court of police efficient, the confirmation of the
magiftrate, upon the preceding report, fliould be held to
be final, and the punifhment be infli(5led accordingly ; or
his commitment of the party, for trial, before a court of
juftice, fhould be deemed equivalent to a gaol delivery, of
fuch prifoners as may be, ftridly ipeaking, in the cuilody of
tire police.

It ought, under this branch of the fub^'ed, to be an
eflabliflied rule, that the fubftitutes, in the different dif-
trids, fliould make monthly reports of all affairs of po-
lice to the deputies, to whom the police may l)e committed,
within the limits of the courts of circuit, and to the deputy
of the Superintendent-general, in the feats of government ;
and that the Superintendcnis fhould make quarterly reports
to the Governor-general or the Prefidents, that the actual
Hate of the country may be known to them, ami the
improvement of their regulations of police become a part
of thofe duties for \\hich they are refponlible to the
government in Britain.

Part II. Mmm 2 It

454

OF THE BRITISH GOVERNMENT

CHAP. I.

« — . — '

Mode of
conneAing
this pbn of
police with
that known
to the native
princes,

It is piopofed, in the fixth place, that fuch fliare in the
management of police, as is confiftent with the preceding
fyftem, flioulJ be left with the native powers, whofe names
are ftill ufed in the government. The diftinclion which was
I'uijgcfted in arranging the judicial power will nataially come
to be obferved in accommodating this inftitution of police
to the remains of their fovcreignty. The difficulty will be
lefs, perhaps, upon this laft fubjeft, and more eafily fur-
mounted, than that which occurred in the firft, fmce it
has been found that under the Hindoo and Mogul efta-
blifliments, the officers of police were fubordinate to thofe
ofjuftice. By a fpecies, therefore, of agreement with thele
Princes, the regulations for accommodating the ancient
to the new plan of police might be adjuited, and the
reports, which ufed to be made to the native Princes, be
reo-ularly communicated through their officers, to the Go-
vernors or Prefidents, that both might feem to take that
fhare in the internal government of the country, which
would mark to the whole inhabitants a common intcreft in
their fafety and profpcrity.

—coincided
with the
preceding
plans of go-
Ternmcnt and
of juril'dic-
tion.

By this arrangement the difpofitions and condudl of
the natives, with refped to the Englilh nation ; and reci-
procally, the difpofitions and condu6t of the Britifh fub-
je^ls, with refpecft to the natives, would be fully known ;
and the firft fymptoms of revolt in the former, or of
opprefTion in the latter, from being matters of daily dif-
covery and of daily punifhment, would create in each of
*, them

AND TRADE IN THE EAST INDIES. 455

them that mutual confidence which would attach both to sect. ii.
the Britifli e:overnmcnt.

It is propofed, in the lafl place, with the objca of STreiga"^
more fully conne61in<^ the judicial power in India with jutiiciai

... .^,.,_, power with

the court eUablilhed in Britain, for the trial of Indian delin- the court, for
quents, that the acls 1784, and the improvements in the a6l indian'dtiia-
1786, fliould continue. Upon this particular fubje6l, it is ^".ft"-,n"^
to be obferved, that if the conne£ting a foreign dependency
with the Britilh government is difficult in iti'elf, the efla-
blifhing a law which is to punilhi injuftice done by the Bri-
tifh fubjecls in India is not lefs fo. If the Britilh fubjecls
who have rcfidcd in India have been made amenable to a
court in England, it is to be recolle61ed, that the crimes
or mifdemeanors, for which they were to be tried, have
been committed in India ; and that the Legiflature could
not forefce the means which might be thought of, for
evading the intentions with which the law had been made :
experiment and time alone could difclofe them. Hence, in
this, as in all Acts of Parliament, where claufes mufl be
introduced, pointing out not only the method of applying
the law, but of preventing the evafion of it, we have a
proofof the fuperiority of that rule which arifes from the
experience of ages, over that one, which, however excel-
lent, has either been untried, or is not accommodated to
every cafe. With the obje6t then of rendering this court
fully adequate to all the purpofcs for vvhich it was inlli-
tutcd, the following additional claufes may be ufcful:

Parx II» That

435 OF THE BRITISH GOVERNM ENT

ctfAP. T. That the defendant, in the trials brought into court
upon an information preferred againft him, iliall not be al-
lowed to avail himfelf of ariy defe6l, or want of form in the
information, or in the fubftance of it, except upon demurrer,
Avherein fuch defect lliall be fpecially affigncd and fet forth,
in the manner of demurrer; and ihat in all cafes, prior to
the ultimate judgment to be given rpon fuch information,
it (liall be in the dirediion of the Court to grant leave to
mend it; and if judgment ihall be given againft the de-
murrer, the defendant fliall not be permitted to plead over
to the information ; but the judgment (liall be conclufive,
(as in demurrers in ether criminial cafes,) fubjecl only to
a writ of error. If this writ of error fliall not be obtained
within twenty days, after judgmcnt'is given upon a demurrer,
or the writ of error difcontlnucd, or the judgment on the
demurrer affirmed, then the decifion iliall be delivered
to the Lord Chancellor, or Lords Commiflioners of the
Great Seal, who fhall iffue a comniifiion under the Great
Seal, for conftituting a fpccial court of judicature, agree-
ably to the exiting flatutes, for pronouncing final judg-
nicnt on the cafe. This judgment is not to be quedion-
able in any other court, by writ of error, appeal, or any
other form of proceeding. The court is to caufe their
judgment or fentence to be executed by warrant, or to re-
mit it to the Court of King's Bench, for execution or for
poroceedJng to outlawry, in the manner directed by former
atls of Parliament.

ANDTRADEINTHEEASTINDIES. 457-

If any defendant flia-ll not have furrendered, agreeably SECT. 11.
to 26th of the King, and proof be made, by affidavit
or otherwife, to fatisfy the Court of King's Bench that
the defendant is beyond fea, or cannot be found in this
kingdom, to anfwer the charges brought againft him;
then the court may order a rule, diredling the defendant
to furrender himfelf in court, or to the chief juftice, or to
one of the other judges thereof, at a certain day, at the
difcretion of the court ; a copy to be (within twenty days
after making the rule) three times inferted in the London
Gazette, and affixed upon fome public place in thg
office of the Eaft-Lndia Company, in the city of London,

If the defendant fhall not furrender himfelf accordins: to
fuch rule, then, on proof being made of the publication of
it, the court are required to give judgment, in default,,
againfl him, purfuant to thea6t the 26th of the King,

If the defendant fhall have entered into any recog--
nizance or bail, purfuant to the adls the 24th and 26th
of the King, and purfuant to the laile above defcribed, then.
the Court of King's Bench are required to give judgment
by default, and procefs of outlawry may be iffiied thereon.
In no cafe where judgment Ihall be entere«l or given by
default, Ihall imy writ of error be allowed; but the record,
of fuch judgment ihall, at the option and requeft of the
profecutor, either be retained by the Court of King's Bench, ,
for final fentence, or be delivered to the Lord High Chan-
cellor, or Lords Commiflioners for the Great Seal, who-

Part IL ' ilialL

458 • OF THE BRITISH GOVERNMENT

CHAP. I. fliall thereupon iflue a commiflion under the Great Seal,
conftituting the Court of Judicature for the trial of Indiaa
delinquents, who fliall pronounce final judgment and fen-
tence thereon, with proceedings for the execution of the
fentence or outlawry. ^

Refuit. Such fcems to be the judicial power required for the Bri-

tifh poflefTions in India, and the amendments in the exifting
a6ts, regarding the trial of Indian delinquents, in England,
which experience has pointed out to be necefTary for uniting
this diftant dependency, and the government eftablifhed in
it, with the government of Great Britain.

HISTORICAL VIEW

OF PLANS,

TOTs. THE GOVERNMENT AND TRADE OF

BRITISH I N D I A, Sec.

C H A P L

SECT. III.

OF THE FINANCIAL POWER RECiyiRED UNDER THE PRECEDING
PLAN OF GOVERNMENT.

CONTENTS.

Nature and Progrefs of the Financial Power — is the mojl com-
plicated Branch of Political Ocjonomy — ta - -/ // in Hin'
doojlan under the Moguls — became more opprejjlve in its Pradlicc
Part II, N n n under

460

OF THE BRITISH GOVERNMENT

under the Ufurpers in the Provinces of their Empire — Sources
of Revenue in the Britifh Provinces in India — Progrefs and
Rcfult of the Invejligations to afcertain the Nature and Extent
of it under the Moguls — under the Ufurpers, and under the
Company in the central Provinces — lLffe£i of the Acquiftion
of the Duannee, on the- Financial Power — Ineffectual Regular
tions for the Revenue propofcd by the DirecJors-r-FirJl Par-
liamentary Interferences to correal the Abufcs of the Financial
Power — Refult of them — Expe3lations of the Directors from
the calculated Amount of the ancient Revenues. — Decline of the
Revenue— from the Uncertainty rfpecting Zemindary Rights —
from the erroneous policy and reafoning of the Company s Ser-
vants—from the Failure of a Demand for the Produce of In-
dujlry by the Fall of the Court of Delhi, and Courts of the Sou-
bahdars, £?r. — This lafl Evil in part removed by the Demands
from Europe — Confequences of the Company s Acquiftion of Ter-
ritories on the Rife and Fall of Revenues — Refult of the late En-
quiries on this Branch of Indian Oeconomy in a permanent
Settlement of hand Rents — in fixing the Rates of Duties
and of Cujloms—fimilar Invejligations, the Means of giving
a fixed Character to the Financial Power over all the
Eajlern Dominions of Britain. if. Propofal for ajfeffing
and collecting the Revenues through the Boards of Revenue,
2d. Propofal^ to fix the Rents of Lands in general, ^nd
7ender Leafes permanent, ^d. Propofal to fix the Duties
on the Produce of Indufiry and the Cuftoms on Trade. i,th. lyo-
pofal to hold out Encouragements to Indu/lry and Trade among
the Natives, our Subjects — Appropriation of the Indian Reve-
5 nues

AND TRADE IN THE EAST INDIES. 46^

fines ajfejjed and levied upoithefe Principles, i. Propofal, to ap-
propriate the Revenues to the Military, Marine, and Civil
Charges. 2. Propofal, to appropriate them to the Payment oj the
Company's "Debts, — either by funding them in hidia ajid in
"England, — or by cnablmg the Company to encreafe their Ca-
pital. This lafl, the mofl immediate Means of difcharging
the Debt. 3. Propofal, to appropriate the Revenues to the
Suppoj-t of the Compafiys hivefment. 4. Propofal, Appropri-
ation of the Surplus to an eficreafe of the Dividend from eight
to ten per Cent. — and to an annual Participatio7i of the Rcfidue
isoith the Public — Encreafe of Surplus to be the Company'* s—
Contingencies upon which all thefe Appropriations may depend.

I SECT III

N every State the financial power fignifies that exercife of ^ . ' . / V

the fovcreignty by which it fcts apart vahie, to be apphed NTntureand
for maintaining the officers employed in the adminiftration P'"sr«''5 «/

" / ^ _ the niuncial

of civil affairs, and for levying and paying the armies power,
or fleets required to defend its fubjefts againft the at-
tacks of neighbouring or foreign nations. This value, or
public property, varies in its nature and amount with the
progreffive ftages of civilization. In rude ages it is either
the produce of a portion of the original foil, or in the event
of a conqucft, a proportion of the acquifition whether
Part Hi N n n 2 confifting

462 OF THE BRITISH GOVERNMENT

CHAP. I. confifting of plunder or land paid to the chief or condu<'3or
of the expedition, or it confifts of temporary contributions
levied by this chief, acting for the prefervation and pro-
te6lion of his followers. After arts and commerce have
begun to create a fpecics of property, which does not
feem to arife from territory, but from the wealth acquired
by the ingenuity and induftry of the inhabitants, the
fovereign power begins to confider, that a portion of this
■wealth alfo ought to be paid for the proteftion afforded
the artifan, the manufadurer and the merchant, again ft
the violence of individuals or of external enemies. This
affeflment on induftry bears a kind of indefinite propor-
tion to the former tax paid from lands, and is the cir-
cumftancc which firft gives a complicated afpecl to reve-
nue.

— istTiemoft To define this financial power, has, under every fpecies
bniTch''or of government, been the moft difficult branch of political
political occo- cQconomv. It varies in its chara6ler, and in the mode of

nomy. •'

exercifing it, according to the fituation and circumftances
of any people.

Stiteofitin In no nation has the fources of this power, and the
^n'-erlhc"' cxcrcife of it, affumed more complicated afpeds than in
isioguis, Hindooftan, whether we trace them from the rife to the

cftablilhment, or from the cllablifhment to the fall of the

Mogul empire.

3 When

AND TRADE IN THE EAST INDIES. 4^5

When the Mosnls firft invaded Hindooftnn, it was with SECT. ill.
the objcft of levying contributions rather than of founding
an empire. The vefliges, however, of this firft violence
remained, after the conquerors had fixed a feat of their
power, and divided their dominions into diftind foubahs or
provinces ; hence the cuftom of levying temporary contri-
butions to anfwer the real or pretended exigencies of the
fovcreign. Baber and even Acbar pradlifed this meafure,.
though the latter Emperor fixed the jumma, or tax roll,,
for the aflelTment of lands, and the duties or cuftoms on the.
induftry of his people.

This prerosrative of the Moguls did not ceafe with the —became

I ° • /- - • 1 more oppref'

fall of the empire. It was exercifed by the ulurpers in the five in its

different provinces, and copied, in many inftances, by the {I'ndeinhe

Hindoo ftates, who took| advantage of the revolution, to ",ij'''rovin-

eftabhlli their own independence. ces of their

empire.

The financial power in India was. In this fituation, at
the period, when the conqucfts of Great Britain were made,.
and when the Company became officers of the fallen Moguls,
allies or mafters of the ufurpers in the richeft provinces,
or allies and fupporters of fomc of the Hindoo ftates, for
the purpofes of carrying on trade.

To have a view then of the financial power in the Britifli Sources of

1 T T n rL • -1 revenue ii>

provmces m Hmdooftan, we mult revert to its particular thcBritini
charav5ter among the Moguls, and connect this with the [,i2i ""■" "*
circumftances which have led the Company to adoj:)t
Part II. the

464

OF THE BRITISH GOVERNMENT

CHAP. I. the Mogul fyftein, or to change it. In this way we fhall
difcover the fource of our own revenues in India, and be
able to judge of the appropriations which have been made
of them. The revenues in the Bengal provinces, (and,
allowing for local differences, in the other provinces) arofe
from land rents, from duties on the produ6lions of the arts,
and from cuftoms levied on trade. The Bengal provinces
being the principal of the Company's pofTeflions, and thofe
by which not only the other Icttlements have been fup-
ported, but by Avhich the Company have been aided in
purchafing inveftments, claimed the firft attention of the
Diredors, and afterwards of the Legiflature.

Progrcfs and
rtfult of the
jnveftiga-
tions to afcer-
ta'in the na-
ture and ex-
tent of it
under the
Moguls.

The financial power of the Moguls, from the very na-
ture of their conquell", was blended with the judicial, be-
caufe the objecSl of the invaders was to build a fyflem of
civil adminiftration upon a military arrangement. An
annual colle£):ion was made from the produce of the lands,
of this the Sovereign had one part, the cultivators another,
and out of this laft \\ as taken the expenfe of colle6lion.
The fame method of afleffment and colle6lion was employed
in levying duties and cuftoms on the produce of arts and
manufadures, and on trade, inland, tranfit or external.
Hence the colle£lor of land rents, duties or cuftoms, often
gave the Zemindars opportunities of levying additional fums
for their own ufc. If they paid the Prince, the oppreffion
was overlooked in proportion to the low rank and remote
fituation of the cultivator, artizan or trader. The fum paid

AND TRADE IN THE EAST INDIES. 465

by the different provinces varied according to the extent and sect. in.
fertility of each province. This appears from the propor-
tion at which the different provinces were affeffed by Acbar.
Thefe proportions were encreafed by his fucceffors, and ftill
more fo by the ufurpers pf his empire. The Duan paid the
proportion for the province allotted to him into the trea-
fury at Delhi ; he was checked by the Soubahdar, but both
Soubahdar and Duan frequently united in the plan of raifmg
contributions from the fubjecls, for the purpofes of flrength-
ening their own power, and of encreafing their particular
riches ; they of courfe winked at, or authorized the fame
iniquitous practices in the Zemindars, who, from the acci-
dents of birth or arbitrary nomination, were the collectors
of revenue, the fubordinatc judges, and the officers of po-
lice in the dirtri6ts into which a province was divided. In
their turn thefe Zemindars portioned out the like powers
among their inferiors, fo that the ryot or cultivator of the
foil, though he was confidercd to have a right to remain
on it, and to cultivate it for his fupport, and for the pay-
ment of the rents to the Zemindar, was, in fa6t, expofed
to an opprcffion that encreafed in proptntion to the number^
and orders of the officers, who a6ted between him and his
Sovereign.

In this fituation the Eaft-India Company received the Ben- Under the
gal provinces, retaming the Nabobs or Rajahs in them, in undeTlhc
whofename this corrupted Moo-ulfyftemwas carried on; and *^'°'"i""y'"

L c> J ' the ccntnil

having, together with the Nabob, a Duan, nominally ac- provinces,
countable to the Nabob, but really the inftrument of op-
Part II. prcffion

466 OF THE BRITISH GOVERNMENT

CHAP.I. prcxllon in the hands of the Company's fervants, who ufed
* * him as the broom by which they were to fwecp togetlier

weakh to be tranfpurted to Europe.

Efivarfthc /^Y \^a Lord Clive obtained the Duanncc, and though

acquilitiou of i i y^ ?

the Duannee he did Hot, by this, render the Company more powerful
ciai^pow'cr."" than they had been, after his viiStory at i-laffey made them
deleiiated foverei<rns, he rendered the Governors and Coun-
cils more accountable for their conduct to their fuperiors
the D;re6tors, and gradually brought forward, by this re-
Iponfibility, the fubject of Indian revenue to notice, exami-
nation, and regulation by the legiflature.

Before the acquifition of our territories, the only reve-
nues which the Company pofleflld in India, were the rents
paid by the little diftri(fls, which they had obtained round
their faftories or feats of trade, and the cuftoms which they
levied at thofe ports, which the guards of their fa6tories
could command ; thefe rents and duties were, in general,
affefTed agreeably to the cuftoms of the country, and levied
according to the terms of the grants, which had been ob-
tained from the Moguls, or from the Chiefs who were the
immediate fuperiors of the diftridts.

When the conquefts of Lord Clive gave the Company
■dominions, they adminiftered their revenues upon the fame
principle with the ufurpers of the Mogul power; that is,
upon the principle of the Mogul government. The con-
fequences were, that the natives complained of the admini-

ftration

AND TRADE IN THE EAST INDIES. ifi^

ftration of the Company, and the Company's fervants of SECT, ill ,
each other. The former faid, that the tenures upon which
they had held their lands were done away, and that they
were unable to pay inland duties upon trade, when the
Company's fervants paid none, either to the native princes or
to their Mailers. The latter either appealed to the privileges
which the Company had obtained from the Mogul and
Nabobs, but which the Diredors did not underftand, or
offered apologies to the court, each laying the blame upon
another,, to exculpate himielf. At laft all men were fatisfied
that the conflitution, which was fuited to a mercantile
aflbciation, was by no means calculated for the management
of a financial power in ex ten five provinces.

In confequence of this opinion, the Diredlors and Pro- ineffeaLial

1 111 1 • r 1 f regulations

pnctors endeavoured to lay down regulations tor the nnan- forthereve-
cial power in India ; but from the very conflitution of thefe ",v^ihe,i)i'r'eV
courts and from the novelty of the fubje6l, the propofed '"''^•
regulations were imperfect in themfelves ; and from the
iiifluenc.e which the Company's fervants, who had re-
turned from India with large fortunes, and become Pro-
prietors of India flock obtained, by making and unmakino-
Diredlors ; the regulations (fuppofing they had been per-
fect \\\ themfelves) were eafily evaded in their application.

Such were the circumflances which alarmed the Public, Firftpariia-

and called for the interference of the Legiflature. It ap- "eifc''cnce'to-

pears upon the reports of the Houfe of Commons, that the abu'ii-fofYhc

r^veniics :n cur Indian provinces principally arolc from the ^"""^'•''''^

power.

Paut II, O o o rents

468 OF THE BRITISH GOVERNMENT

^£ii/\iM. rents of land; that the tenures by which thcfc lands had
been held, Mere feudal in their fpirit, but local in the cir-
ciimllance of the holder beinsr removeable at the pleafure of

P
the Prince; that the Zemindar paid his rent to the Collector

or Duan of the province ; that the Chowdrie and a few of

the Talookdars, might have held their lands immediately of

the Mogul, but that the great body of the Talookdars held

of the Zemindar and paid their rents to him; that though

the ryots or cultivators of the foil had, as fuch, original

rights, yet, that they were liable to oppreflions, proportioned

to the number of their fupcriors, fince the farmers of the

revenue contracted with the Zemindars, Talookdars and

Farmers ; and thus, if they levied the quantum to be paid

to the ftatc, they might with impunity extort money for

themfclvcs.

Rcfutt of When the produce of the revenue thus was to pafs

'^""' through fo many hands, opptefiions began with the lowefl

perfons in office and rofe in a cruel progrcflion to the
higheft. The Zemindar might be opprcfled by the imme-
diate Colle6tor of Government; he, in his turn, by the
Nabob ; and he, in like manner, by the Duan, who re-
mitted the ftipulated revenue from the province to the ca-
pital. Nor were the oppreffions confined to thofe exercifed
upon the cultivators of the ibil, fince the revenue arofe,
not froni the rents of land alone, but from the duties
which were impofed upon induftry and trade. If a farmer
improved his fields, the Zemindar affelTed him according
to the fuppofcd profits Vv^iich his improvements would
yield ; if an artizan improved or extended a manufafture,

a funi

ill

AND TRADE IN THE EAST INDIES.

469

a fum was levied on his computed flock and profits ; if a SECT. in.

merchant bought goods and carried them to market, he

paid a duty on them where they were purchased, he paid

road duties and river duties as he went along with them

for fale, he paid a duty at the aurung where he was to ex-

pedt his profit ; fo that, till they came into the hands of

the confumer, the payment of duties did not ceafe. Under

the ancient government, indeed, thefe taxes had fome

check, arifing from the laws impofing them being under-

flood ; but when the fovereignty pafled into the hands of

the Company, to be excrcil'ed in the name of the Nabob,

even this check was done away.

The Dlre6lors, ftruck with the magnitude of the re-

Expe('\ation«
of the Direc-

venue, as remitted to Delhi, thought of nothing beyond toi-stVomthe
realizing it ; and the firfl: governments, after the acquifition

of the Duannee, thought of nothing beyond gratifying the
demands of the Dire6tors ; unlefs it was, fheltering themfelves
under this authority to exercife their power for interefted
or private ends.

amount of
the ancient
revenues.

The fources of the revenue, &t lafl, began to be dried
up, and yet the Direftors required the fame amounts.
Eager to prefcrve their power, their foreign fervants ftrained
every nerve to keep up the revenue, and to coUeft the
money in circulation, for fupplying the China inveftments.
In the firft of thefe opprefllve plans, we difcover the true
caufc why Nabobs were degraded, made and unmade ; and
in the fecond, the caufes which contributed to the decline

Part II. O o o 2 of

Decline of the
rcrenue.

OF THE BRITISH GOVERNMENT

of ao-riculture and of manufactures. In the union of both,
the fources of the fudden change of a rich domain, into
(what threatened to become) an impoverilhed and defolated
wade.

It was now that thefe evils were feen in all their magni-
tude, and that enquiries were inftituted to afccrtain what the
rights of the Zemindars and Landholders had been, under
the Mogul government, and what were the real fources o£
the decline of agriculture and of manufadtures.

■ — from the

■uncertainty

icfpefting

zcniindary

iighrs.

On the fubje6l' of the rights of the Zemindars, the rea-
fonings continued for years, in extremes. On the one hand,
it was aflerted, that the Zemindar had been merely an
officer or colle6tor of revenue ; on the other, tliat he had
been a feudatory Prince of the empire. It has required the
mofl laborious inveftigation to difcover the fa£l, viz. that
the Mogul was the Lord fuperior, or proprietor (terms equi-
valent in their meaning) of the foil ; thaj; the Zemindars
were officers of revenue, juftice, and police ia their diflridts,.
where they alfo commanded a kind of irregular body of mi-
litia ; that this office was frequently hereditary, but not ne-
ceffarily fo ; that, on the failure of payment of the rents,
or of fulfilling the other duties of his office, he could be fuf-
pended or removed from his fituation, at the pleafure of the
Prince ; that the rents to be paid to him were not fixed, but
afTeffed, at the will of the Sovereign ; and that the ryot
or cultivator of the foil, though attached to his poflcf-
fion and with the right to cultivate it, yet was fubjedted

AND TRADE IN THE EAST INDIES. 47^

to payments, varying according to particular agreements SECT, iii.^
and local cultoms ; that, in general, he continued on the
fpot, on ^vhi■ch his labors were dire6tcd to raife the means
for his own fubfiftence, but that the proportion to be paid
to the flatewas to be judged of by the Zemindar; that the
rights of the ryot had been gradually abridged, and the pro-
portions he paid encreafed, during the fuccefiive revolutions
through which his country had to pafs, before and after
the fall of the Mi-gul empire.

On thcfources of the decline of agriculture, and of ma- — fromthe

" _ erroneous

nufadlures and trade in Hindooflan, the reafonings, though policy and
they have not been fo much in extremes, as on the fubjeft of the Com-
land rents; yet have, by no means, been full or fatisfa6tory. ^,:|"f/ ^^'■*'
On the one hand, it has been faid, that the oppreffions of ^gj

the Company's fervants alone produced the decline of the arts
and of trade ; on the other, that but for the quantities
taken off by the Company, or by the Europeans in general,
arts and trade would have more rapidly declined than they
aftually did. This evil, hoAvever, may be traced to fources
diftindt in themfclves, though encreafed more or lefs by
thefe events. Jn the Mogul lyflcm of policy we can fee
their origin, and, in the exercilb of this policy, by the Ben-
gal prefidency, their completion. By the former, the duties
on the prodadions of arf, and the cuftoms on trade were im
the hands of Soribahdars or Nabobs and their Duans,. or in
thofe of their Subordinates, the Zemindars ; by the latter,,
the powers which all of thcle Mogul officers had cxcrcifed„
were confidered to have pafled into the hands of our Pre-
Part II. fidents,

+7^ OF THE BRITISH GOVERNMENT

CHAP. 1. fidcnts and Councils. We have already adverted to the
cucuinflance, that the amount of the revenue was to be
kept up, while the money in circulation was to be carried
off to a foreign market. If to this immediate caufe of the
decline, we add, that the richcft portions of the foil
were often let to the Company's fervants, while the lefs fruit-
ful were to pay an encreafed tax ; that the Company's fer-
vants pleaded an exemption from duties and cuftoms on
trade, while the Mahomedans were fubjedled to heavy
payments of them, and the Hindoos to heavier ftill ;
that the lands which had been laid wafte, were to be culti-
vated at the Company's expence, and their fervants to be
paid for the fuperintendencc of this cultivation, while
the inhabitats on thefe lands werefubjectcd to heavy duties
and to cuftoms ; we can be at no lofs to account for the
decline of agriculture, of arts and of trade. Inftead of
equalizing rents, or duties and cuftoms, the ancient policy
was continued ; the Zemindar was made a tenant at will, and
the leafes or pottahs to the farmer, when he was unable to dif-
charge his rent, frequently given to ftrangers and to adven-
turers, whofe ftock and credit were foon to pafs through
the like vicifiitudes.

— fiomthe Connected with thefe circumftances was the mercantile

failure ot a

demand for fituation of the nativc artizan, the manufa^urer, and the
oAnduftry merchant. After the fall of the court of Delhi, and of the
Shewurtof'^ courts of the Soubahdars and of the Nabobs, the demands

Delhi and -which had been made for the iModuclions of art, as mi-
courts ot the , ' rr -1

Soubahdars, niftcring to the luxury ot magmncence, necellarjly ceaied ;

'> demands

AND TRADE IN THE EAST INDIES. 473

demands too, which, from their nature, returned their SECT, iir-

value through the merchant to the manufa6lurer, through

him to the artizan and the cultivator of the foil, and by this

current, not only kept the money in perpetual circulation in

the countiy, but gave a conflant ftimulant to exertion ax^d

to induftry. Inftcad, therefore, of afcribing the decline

of the arts and of trade to the Eaft-India Company alone,

a61ing upon the policy of the Moguls, it is almoft certain,

that had not an outlet for Indian produ6tions been afforded

by the European companies, the fall of Eaftern arts and

manufa6lures, and the confequcnt diflrefs of the natives,

would have been more fudden and general.

It ought not alfo, upon this fubje6l, to be forgotten, This laft evil,
that the demand for Eaftern piece and wrought goods in moved 'by the
Europe was, from their novelty, greater, during the firft Eu"ropc! ^°"^
period after we acquired our territories than during a later
period, when that novelty had ceafed. The tafte in them
had continued the fame in the Eaft, becaufe no Eaftern
court remained to give them fafliion. In Europe, the imi-
tations of the fabric of Eaftern piece and wrought goods
began to gain ground, and our tafte in the form or falhion
of them to change and to improve. The demand, of courfe,
decreafed, though it has, in fome degree, been reftored by
the imitations of the European tafte, which have been intro-
duced into the Indian manufactures.

If then, we bring the whole of thefe circumftanccs to-
gether, viz. that no imperial court exifled in the peninfula.
Part II. ta

-^7*

OF THE BRITISH GOVERNMENT

CHAP. I. to take off or to give fafnion to the prodn6lions of the
Confequen- attizaii oi' manufacturer, or profits to the merchant and
cesouhe trader: that the money in circulation was withdrawn, to

Compan 's ■' , . . . ,

aoquiCtion of be Carried to a diftant market ; that the nnitation of Eaftern
the rife ind arts was Icflening thc demand for the produce of them in
bum!,* '^**^" Europe; we difcover, at once, the caufes of the failure of
that part of the revenues, which arife from duties and
cuftoms. Hence the merit of the Directors and of the exe-
cutive power in introducing regulations, tending to give
the landholder encouragement, by confirming him in his
property, upon payment of a fixed rent ; and hence the
propriety of the meafures which have been devifed for en-
couraging thc artizan, the manufacturer and the merchant,
in our Afiatic provinces.

Refult of tlie
late enquiries
on this
branch of In-
dian cecono-
my, in a
permanent
Settlement of
land-rents,

With the objecl of introducing this liberal policy, the
enquiries of the intelligent fervauts of the Company have
been directed to inveftigate the hiilory of the revenue, and
to afcertain the prefent itate of the diftridts in the Bengal
provinces. For thefe purpofes, the changes through which
they have palTed, the impofts to which they have been
fubjedted, and the cuftoms peculiar to each diftri<5t have
been inveftigated. In this way the ancient rights of the
different orders of the landholders, and of the tenants,
have been unfolded ; a diftribution of the provinces into
colleclorfhips introduced ; the amount of the rent to go-
vernment from each divifion fixed; and the inferior occu-
pant, and the immediate cultivator of the foil, fecured in the
enjoyment of their property, upon payment of a moderate

^ and

AND TRADE IN THE EAST INDIES. 475

and known fum to the principal landholders. Till thefe ends SECT. ill.
could beeffefted, it was impoflible to know the perlonswith ' ' '
whom a fettlement could be made, to come to any decifion on
the claims of the Zemindars, to make out a permanent aflefT-
ment of rents, or to devife regulations for ievyino^ them.

It was now that the Mogul financial principle of colled-
ing continually upon the a£tual produce of the land, and
of dividing this produce between the fovereign and the im-
mediate cultivator, was perceived in all its pernicious con-
lequences, of concealment, fraud, and the muItipHcation
of the immoral artifices by which the charafters of men of
every rank had been debafed. It was now that the changes in-
cident to the fituation of the Zemindars, their fraudulent
alienation of lands, and the mifmanagement of the revenue
fervants of the Company, during the firft years of the
Duannee, were dete6led and explained. For this valuable
information the Company are indebted to the adlivity and
integrity of the Board of Revenue; and, on this infor-
mation, have proceeded the regulations which have been
devifed, for doing away former abufes and rendering the
financial power precife and refponfible.

After all, however, that has been done, and with all
the accumulation of records of revenue, flill time and ex-
perience will be required to afcertain the aftual value of
all the diflri6ts in the provinces. Enough, however, has
been obtained to juftify the introduiSlion of a fixed rule of
taxation, that lliall be fimple and invariable in its cha-

Part II. P p [i racier.

476 OF THE BRITISH GOVERNMENT

CHAP^ rafler. To this the example of the Decennial fettlemenf
with the contingency of becoming perpetual in Bahar, ne-
ceflaiily led. The objecls in making the perpetual fet-
tlement were, to confer on the landholder the poflefiion
of the diftri^t which he occupies, on a fixed and moderate
rent ; to deprive him of the power of interfering with the
fituation of the Ryots, in the fums they pay to the ftate,
under the pretext of making any addition to the revenue ;
and to leave to the fovereignty its right to excrcife, from
time to time, its authority in making fuch regulations, as may
fecure the ryot in his poflefllon, and prevent his being
loaded with unwarrantable exactions. Nor is this mealure
more political and wife, than it is liberal : it has not pro-
ceeded from any pofitive title in the natives to their
lands, but has been a conccffion from the Britifli govern-
ment to the Zemindars and to the Ryots, which they never
had been able to obtain under the mildefl adminiftration
of their native Princes.

—in fixing The fixt afiefTnient of lands, however, would have been

d'Ji^iM and of ^'-"^ ^" incffcdlual relief, had not the power of eftaWilTiing
cjftcnis. Gunge Haut and Buzar, or market duties, been vefted in the

fovereignty alone, and had not the claim of the Zemindars
to impofe duties or cufloms, in their diftricts, been done
awav. Many of thefe Zemindars a\ ill polTefs extenfive dif-
triclis, which, with fuch rights, might have endangered the
public fafety.

Having

AND TRADE IN THE EAST INDIES.

477

Having thus pointed out the fources of revenue in the
central provinces, with the mcafures which have been de-
villed for afTefling and collecting its various branches, it
is reafonable toexpedl, from the adivity of the Company
and of the executive power, that the like mcafures (allow-
ing for difference of fituation and of inftitutions) will be
followed up, in the Britifh dominions on both coafts of the
peniniula of India. For this public end, however, invefli-
gation and experience will be required, and the following
propofitions in connexion with the fyftem of government
which has been fuggefted, as fuited to our Afiatic poflefTions
feeni calculated to become the bafis of this improvement.

SECT. in.
yr-v '

Similar iiivef-
tigations, the
means of giv-
ing a fixed
character to
the. financial
poner, over
all the Eaf-
tcrn domi-
nions of Hu.-
lopc.

First. It is propofed, that the financial power for our In- i. Piopof.a
<3ian revenues Ihall, in its conftitution, rcfl upon the fyitem and coUe'a?
of government, which we have attemiited to point out as '"gtheieve-

D 1 r nucs through

expedient and praclicable for our Eaftern dominions of every the Boards of
defcription. As the prefent Boards of Revenue in India,
originated in this plan of government, and accord with it,
in its moft improved afped, it will be expedient to con-
tinue them, prelerving their relation, at the fame time, with
their refpective prefidencies, and with the fupreme poAver
in India ; and the relation eftablillied between it and tiie
Court of Directors, and the executive pov^^er in Britain.

Second. It is propofed, that the rents of land fliall, ingc- 2. Proin.f.ii

neral, be fixed, and the leafes made perpetual, upon the rentsofiands,

plan which the inflrudlions from the Court of Diredlors in anlrender

J 786, Lord Cornwallis's judicious arrans:enicnts, and the '"'" peinu-

Part II. P p p 2 fyftem

478

OF THE BRITISH GOVERNMENT

CHAP. I.

fyllem which has been detailed, have pointed out ; that Is
to fay, that the Zemindars, or Hereditary Proprietors,
fliall have Icafes of their lands on a fixed rent, that thefe
leafes fhall not entitle them to impofe any new burdens
upon the farmers and cultivators of the foil, under the pre-
text of tributes to the flate; and that they fhall be under
the fole condition of fulfilling the articles, which have
been ftipulated with them by the fovereign power. Such
a mcafure will recommend itfelf to the natives, as being an
impro\ement upon the fyftem of Acbar, and of Jaffier Chan,
and at the fame time, it muft become an additional bond
of their allegiance and attachment to the Britilh Govern-
ment.

5. Propofel
to fix the
duties on the
produce of
indullry and
the cuftoms
on trade.

4. Propofal
to hold out
encourage-
ments to in-
duftry and
trade umong
the natives,
our fubjefts.

Third. It is propofed to fettle the duties upon tiade, and
indeed, upon all the fubjedls of induftry at fixed and rea-
fonable rates, and totally to do away the power of the
Zemindars, Chowdries, Talookdars and Farmers, of im-
pofing or levying arbitrary impofts. The right which the
Zemindars had of keeping in their pay a fort of mihtia, to
aid them in colle6ling the rents and duties under the former
fyftem of government, muft, of courfe, be taken from them j
the military eftablilliments, imder the order of the civil
power, being deemed fufficient for ail the purpofes of fane*
tioninsr the eftabliflied laws.

Fourth. It is propofed, with the object of improving the
Indian revenues of all the preceding defcriptions, to give
everv poffible encouragement to the natives, who may di-

rea

AND TRADE IN THE EAST IxNDIES.

479

re6t their induftry to the produ6tion of the raw materials sect. hi.
required in the Britifli manufactures, or to the manufadlured '"'

Indian produce in demand in Europe. The encourage-
ment of the former will obvioufly be for the mutual ad-
vantage of India and of Britain ; the encouragement of the
latter, muft turn upon the principle of not checking our
home manufactures, which are imitations of the Indian, and
yet not abridging the Company's fale of Indian manufac-
tured produce, either at home, or for re exportation to fo-
reign markets.

Having thus fuggefled propofitions on the fubjeclof afTeff- Appiopria-
ing and collc6ling the rents and duties in our Afiatic pro- india°n leve-
vinces, we have in the next place to mark out a line for the """; ^.^^J^^^

i and levied

appropriation of them. upon thefe

principles.

It is to be recolle6led, that the property of the Company
confifts of two diflincl kinds, viz. their capital flock, goods
and other effects in Britain, which may be confidered as the
original bafis of their trade, or as their home property ; and
the articles of their trade, debts due to them in India, and
the revenues arifmg from the provinces, which may be con-
fidered as their foreign property. It is alfo to be recollected,
that till the effects of the late peace can be fully and expe-
rimentally known, it will be impracticable to fay what
appropriation to the fupport of the eflablilliment of our
new dominions may be required. Tliefc, however, are con-
tingencies infcparable from the nature of the Afiatic domi-
nions and trade of Great Britain.

Part II. On

4So

OF THE BRITISH GOVERNMENT

CHAP. T.

On the average of three years preceding the war, the re-
venues of Bengal, Madras and Bombay, amounted to
^yT. 6, 897, 730 per annum, and the charges incurred in the
civil and military eftablifliments to ^(".5,233,717 per annum,
leaving a net revenue, after allowing ^.50,000 per annum
for the cxpenfes of Bcncoolcn and Pinang, of ^.1,614.013.
In an eftimatc lately drawn up by the Court of Directors,
the countries ceded to the Company by Tippoo Sultan at
the termination of the war, are ftatcd to produce _yr.3po, 000.
In this eftimate, the total revenues of the Britiih provinces
in India are computed at ^^.6, 963, 625, and the future civil
and military charges at jT. 5, 238, 125, leaving a net revenue
of ^.1,725,500, out of which the intereft payable on the
debts in India is ftated to be ^.56 1,923, which would leave
a net furplus of j^^-i 5163,577, or, allowing for commercial
charges (j^. 104,450) the net amount to be realized at
home through the medium of trade, or to be applied to the
liquidation of debts in India is ^. i ,059, 1 27.

i.Propofal to
appropriate
the revcnvics
to the mili-
tary, marine,
nnd civil
charges-

First. It is propofed, that a preferable appropriation
fhall be made to the payment of the military and other necef-
fary charges required to maintain the foreign fettlements of
the Company. From the nature of our military power in
India (to be afterwards defcribedS as confifting of European
and native troops, large fupplies mult frequently be necef-
fary ; and thefe, from the dillance of India from Europe,
could not be fent in the rcquifite time. Suppofing then
that the arrears to the European branch of our torce could be
allowed to run up to a large amount, by our depending on

the

AND TRADE IN THE EAST INDIES. 481

the innate love of their country fo decidedly a part in the SECT. iii.
chara6ler of Britifh foldiers and failors, it would be dan- * " '
gerous to make the fame fuppofition refpe6ling the natives.
In every age and amid all the revolutions in Hindooftan,
immediate payments have attra6led the natives to or drawn
them from the ftandard of their leaders. Though their no-
tions of the punftuality and honor of the Britiih nation have
confirmed in them, (during the fucceflive wars from 1778 to
1792) a belief in the credit due to the Englilh, fcarcely
compatible with the Indian chara6ter, yet this cannot always
be depended upon. Credit may be Ihaken by the breath of
opinion, or by the infidious artifices of enemies. The
attachment of an Indian loldier may waver with either, and
Ihift from a BritilTi General as it did from their own 'Empe-
rors, or from one of the fons of thefe Emperors to another,
or from the ufurper of the power of to-day, to the ufurper
of the power of to-morrow. It is but juftice, however, to
fay, that if promifes and payments are fulfilled and made,
the natives of India are as little deficient in their attach-
ments as they have proved themfelves to be in their courage :
but if promifes Ihall be broken and payments with-held,
a doubtful or a difaftrous campaign might diilblve their
allegiance and annihilate their confidence. The appropria-
tion therefore of the revenues to the charges of the mili-
tary and marine eftablilhments, muft, in the moment of
war, fupcrcede every other payment, and during peace, the
fupport of fuch military eftablilhments mufl be pro-
vided for, as may be requifite for the defence of our fettle-
ments, and may imprefs the natives with the bejief of our
Part II. 5 power,

^82 OF THE BRITISH GOVERNMENT

ciiAl'. I. power, not onlv to overcome any confederated force in India,
but to render aids to our enemies, from a rival power in Eu-
rope, hopclefs and impracticable. Under this propofition
will alfo come to be included the payment of the civil
charges. On this fubjed, it may be proper to keep in view
the nature of an Indian civil eftabliiliment, viz. that it
confifts not only of an executive power, but of offices for
the adminiftration of jufbice, and faftories for the purpofes
of trade. In all of thele views, the appropriation may,
from the character of the officers, be employed, and of the
duties required of them, will fafely admit of a longer delay
of payment in confequence of the known credit due to the
Company and to the nation, than the appropriation to de-
fray the charges of armies or of a marine.

2. Piopofai Second. It is propofed, with the objedt of invigorating

atcTile^rcvc- the Credit of the Company, that a plan Ihould be formed

payiVcntof foJ" enabling them to difcharge their debts. Two meafures

the Com- fuggeft themlelves for this important purpofe^ viz. that the

Company Ihould be empowered to fund their debt abroad

and at home, or that they fhould be empowered to encreafc

their capital flock. Both meafures require explanation,

that the plan, which will moft immediately produce the end,

may befeleded and adopted.

— either by The mctliod of fimding their debts we have treated of

ffiSlnnr in delineating the plans which have been fuggefted for the

ia England; future management of Indian aflairs, fmce the period at

which the- controuling power over them was introduced

6 by

AND TRADE IN THE EAST INDIES. 48^

by Adl of Parliament. Should this plan be adopted, it sect. iir.
muft be ena6ted, that the different Prefidencics of Fort
William, Fort Saint George and Bombay fhould have
power to take in fubfcriptions by way of loan, at a rate of
intereft not exceeding 8 per cent; that the outfta-nding
paper fhould be accepted of, at par, in payment of thcfe fub-
fcriptions ; that the money received in the treafuries of each
Prefidency fliould be applied to take up the outftanding
fhares or paper not fubfcribed for ; that the limit of the fub-
fcription fhould be afcertained by keeping open the books in
India, until a fum equal to the exifling debts of the Com-
pany abroad, bearing intereft, fhould be fubfcribed for, and
that this fhould be termed the Fot-eigtt bidian Fund; that the
current annual intereft fliould be made payable half yearly,
at the refpedlive treafuries of Fort William, Fort Saint
George and Bombay ; that, in fpecific and unqualified
terms, the revenues of all the Britifti pofTefTions in India
fhould be the fecurity to the fubfcribers ; and, that the regu-
lar payment of the intereft, free of all taxes, fees or gratui-
ties fhould be preferable to every other demand, the mili-
tary and marine charges of the Prefidencies alone excepted.
To correfpond with this foreign fund, it fliould alfo be
ena6ted (with the object of accommodating fuch perfons in
India as may wilTi to realize their fortunes in Britain, and
with the objed of encreafing the fund for inveftments), that
the Company fhould be empowered to open books, at the
Eaft-India Houfe, for a fublcription at 4 per cent, on the cre-
dit of the profits of the Company's trade and of the furplus
revenues of India ; that the fubfcribers to the foreign fund
Part II. Qj| q fliould

484 OF THE BRITISH GOVERNMENT

CHAP. I. fhouM be permitted to have fliares transferred andAvritten off,
from the books abroad to the books at home ; that the rate
of exchange, at which transfers are to be made, fhould either
depend on a fpecial agreement with the Governor-general
and Co ncil, and Prefidcnts and Councils, and the party
transferring; or be determined by the rate which the Com-
pany, at the time, allow for money in exchange for bills on
Europe, and that the amount to be thus transferred from
India to the books at home, lliould conftitute what might be
termed the Home Indian Fund.

It is obvious, that this plan of a foreign and a home In-
dian fund would ultimately produce the end of enabling the
Company to liquidate anddifcharge their debts, and not lefs
fo, that any contingencies which might interrupt the pro-
grefs of the Company, in carrying this meafure into eft'ecl,
might be provided againft. Should, for inftance, a war
break out in India with any of the native Princes, or fliould
hoftilities commence between Great Britain and any maritime
European power, which might have the cffedl of preventing
the regular payment of the intereft on the ihares of the foreign
Indian Fund, then, the intereft might immediately become
principal, and carry the fame rate of intereft as the fund itfelf
did, from the day at which each half yearly payment of the
intereft on the ftiares of the ftock fhould become due. It is
alfo obvious, that in the event of the holders of Ihares, in
the foreign fund, wifhing to transfer their money to the
home fund, the Governor-general and Council, and the
Prefidents and Councils might be vefted with the power of
4. tranf-

AND TRADE IN THE EAST INDIES. 485

transferring fuch {hares, and the certificates of the proper SECT. in.
officers entitle the party to an equivalent ftock in the fund
at home^ If it fhould happen that transfers of this kind
ftiould not be required by the holders of the foreign ftock,
the Governor-general in Council, or Prefidents in Council,
might.be empowered to transfer a part of the foreign to the
home fund, by borrowing money in India, the lender of
which fliould be entitled, on the day of the loan, to a value
in ftock in the, home fund, equal to the advance he had
made in India ; the. price of the ftock depending on the
market price of the ftock at home, on the day on which
the transfer had been made abroad : by this means the
party lending would be entitled to intereft, as if a fhare had
been placed, in his name, on the books at home,"] on that
particular day, it being eafy to declare the intereft on the
fums, fo borrowed and transferred, to be payable at the fame
half-yearly periods as the intereft of the funds in India. In
the event of the Company being in a fituationto redeem the
whole of the fums fubfcribed abroad, or transferred to the
home fund, they might be empowered to do fo by inftal-
ments, of not lefs than a tenth part of the amount exifting
in both funds, upon giving three months public notice to the
holders of fliarcs, and paying up the intereft to the day on
which the ftock is actually redeemed. It ought, in this
cafe, to be underftood, that the amount redeemed ftiould
be equally divided among all the fubfcribers, without pre-
ference. Such a meafure would cftablifti an equilibrium in
the credit of the Company in India and in Great Britain, in
fo far as resiards the funded debt abroad and the debt tranf-
Part II. Qji q 2 ferred

486 OF THE BRITISH GOVERNMENT

CHAP. 1. fcrrcci home. The amount of the intercfl payable abroad
would thus be lefTened by every exchange or transfer front
India to Leadenhall Street. An eafy mode would, by this
mcafure, be opened of remittance to the Company's fer-
vants and BritiLli inhabitants in India, and, in general, to
the European inhabitants in Hindooftan, having interefts
or trade, of remitting their money to Europe, through a
medium in itfelf more certain than pofllbly could be held out
to them by the other European Companies, who neither have
pofleflions nor trade, conne6ted with revenues, in the Peuin-
fula of India.

--orbyenab- The fecond method of enabling the Company to di£-
paiiytocp.^ charge their debts, is to veft them with power to encreafe
creafc tneir their Capital to a certain fpecified amount. To underftand.

capital. ■"■ _ '■

this plan, it is only necefTary to advert to the amount of
the debt abroad and at home, and to confider vi^hether this
would not be the moft eflfeclual means of fpeedily liqui-
dating and difcharging it.

From the Company's accounts it appears, that the debt
in India in January, 1 792, amounted to jr.9,084,550, and the
debt at home, includmg the transferred debt from India ua-
to £. 10,601,069, that a furplus on the whole of the trade
and revenues will remain, of ^.739,241*, after difcharging an-

* Eftlinate of the probable revenues and cliarges of India on a peace eftablininient,
reported to the Court of Directors by a Committee of Accounts, 15th Februaryy

1793-

♦ nually

AND TRADE IN THE, EAST INDIES. 4S7

««,

nually, ^^.500, 000 of Indian debt, and after paying charges sect. hi.
of cuftoms, freight, and of merchandize, dividends upon
ftock, and every other burden at home. By the annual
payment of ^.500,000 the debt abroad would be rapidly
(and perhaps more fo than the creditors would wifh) re-
duced to three millions, which fum, it would be ehgibic
and convenient, Ihould remain a debt in India.

After alowing firft, a fum equal to the amount of the
debt due by Government to the Company, leaving that ta
be fet ofFagainft the annuity due, or that may be fold by
the Company, and after leaving out the capital due by the-
Proprietors of India flock, amounting to ^.5,000,000, and
fuch floating debts as occur in the common courfe of the
Company's bufmefs, (becaufe a full equivalent for botb
of thefe will be found in the aflets of the Company at
home, afloat and abroad, amounting by lad ftatement to
jr.12,913,854, cxclufive of the debts owing to the Com-
pany in India) the debt at home, including the debt
transferred from India, would not exceed jr.4,Qoo,ooo»
Taking this as the amount, and fuppofing that the Com-
pany would not think of reducing the amount of bonds
in the market, lower than jT. 1,500,000, the debts for which
provifion is to be made, would be J^. 2,500,000. This debt
may be fpeedily extinguifhcd by enabling the Company to
encreafe their capital flock jT. 1,000, qoo ; for, from the llate
of the furplus (as will appear in a fubfequent propofition)
the Proprietors ought to have a dividend of ten inflead of

Part 1I» eight

48 S

OF THE BRITISH GOVERNMENT

CHAP. I.

eight per cent, on their capitvil ; this would enable the
Company, upon the encreafed capital of jT.r, 000,000 to
raife ^.2,000,000 ; becaufe the fublcribers to this additional
capital, whether they be the prefent Proprietors, or a. new
fet of Subfcribers, would receive the fame dividend with
the Proprietors of the old ftock.

This laft the
moft imme-
diate means
ot difchaig-
insr the debts.

This method, therefore, of encreafing the capital fccms
to be preferable to that of funding the debt, becaufe it
would more immediately produce the great end of a rapid
liquidation and difcharge of the debt, and raife the Com-
pany's credit by an encreafc of. the dividend upon their ca-
pital ftock".

3. Propofal
to appropri-
ate the reve-
nues to the
iupport of the
Company's
iment.

Compr
inveuii

Third. It is propofed, to appropriate a fum to the
fupport of the Company's inveftment. From the cxtenfive
fale of Indian goods, this fum, including the fupplies to be
fent to China, ought not to be lefs than a crore of rupees,
or a million fterling annually, befides the amount which
may arife from the fale'of European goods. In this appro-
priation, the invellment lliould be annually encreafed, (as
there is little doubt but it may be) in the proportion that
the debts in India are reduced, either by the liquidation of
them there, or in Europe.

4. Prcpofai, Fourth. Having pointed out the mode of aflefling,
onh°c*'fiT-°" colle6ling and appropriating the Indian revenues, upon
plus, the fuppofition of a permanent ftate of peace and of com-

mercial

AND TRADE IN THE EAST INDIES. 489

mercial exertion, a lurplus may be expected to arife from SECT. IIL
the whole concern. From the preient ftate of affairs, as de-
duced from the Company's accounts, it appears, that after
annually difcharging jT. 500,000 of the Indian debt, and
after paying charges of merchandize, dividends upon (lock,
and every other burden at home, there will remain a furplus
of jr.739,241, even taking the trade in an unfavourable light,
and without bringing into the account the improvements, of
which it is fufceptible, or the diminution of exifting ex-
penfcs.

It is therefore propofed, that the Proprietors fhould — to an in-
have a dividend of 10 in (lead of 8 per cent, upon their ca- diviaen°d/roai
pital; fmce on a retroipedtive view of their affairs, 8 per ^.|°'°p"
cent, is rather lefs than the commercial dividend was, upon
an average, before they obtained poffeflion of the territorial
revenues. This encreafe of the dividends is the more rca-
fonable, if we take into confidcration the many wars in
\vhich the Company have been engaged, and the rifks which
their poffeffions and trade, and, of courfe, their capital has
experienced.

It is alfo propofed, from the Public having a legal —and to an
light to the territorial revenues which have been obtained tidpadon of
in India by ceffion or conqueft ; from the adminiflration of withlhe Pub.
the revenues being permitted to remain in the hands of ''*■>
the Company? without any furrender of the right of the
nation to difpofe of them ; from continuing the remittance
Part II. of

4yO

OF THE BRITISH GOVERNMENT

CHAP. T.
» _ '

of the furplus, through the medium of the Eaft-Tnclia Com-
pany ; and from the advantages which the trade has re-
ceived by the Commutation Aft, that an annual partici-
pation of not lefs rhan ^.500,000 of the furplus (if that
fum fhould remam after aniwering the other claims) iliould
be made with the nation.

— increafc
furplus to
the Com-
pany's.

of
be

WiiATEVEii further furplus may accrue, from an improved
ftate of the revenues and of the trade, ought to be appro-
priated as a fecurity to the Proprietors for their capital (lock;
if, from any acciiieut or unforefeen calamity, either the
capital itfelf {hould be affe6led, or if there ihould not be
means of keeping up the dividend on the capital to the
amount above fpscified. This vvdl tend to preferve the
credit of the Company's flock, and protc6l the Proprietors
from the danger, which the uninformed and unwary among
them might be expofed to, by any fudden or unexplained
flu6tuatiGn in the price.

Contingen-
cies upon
which all
thefe appro-
prijfions may
(iepeiid.

Upon taking a general view of the financial power re-
quired for our Indian dominions, in connexion with the
trade of the Eafl-India Company, it will be readily ad-
mitted, on leaving thefe proportions for confideration, that
though it is not difficult to difcover the foundations upon
which this financial power mufl refl, yet it is impofTible to
forefee the thoufand contingencies upon which the appro-
priations may depend. On the progrefs, for example, of
agriculture, arts and commerce in India ; on the perma-
nence

AND TRADE IN THE EAST INDIES. 491

nence of peace In India ; on the rapid or flow liquidation SECT, iii .
of the debt of the Company; and on the military or civil
charges in our old or in our new dominions. Let events, how-
ever, happen as they may, hnce they cannot alter the
principles upon which a plan of government for our Afiatic
dominions muft reft ; neither can they, the chara6ler of
the financial power required to make that government
pradicable in India, or produ6tive in Britain.

Part II. R r r

HISTORICAL VIEW

OF PLANS,

FOR THE GOVEPvNMENT AND TRADE OF

BRITISH INDIA, &c.

CHAP. I.

S E C T. IV.

OF THE MILITARY POWER REQUIRED UNDER THE PRECEDING
PLAN OF GOVERNMENT.

CONTENTS.

Nature and Objeds of the Military Power. In Hiftdoofan

it was coincident with the Nature of the Mogul Go-
vernment.— In Governments like Britain, it is difficult to con-
Jiitute it as it becomes a Subje5l of political fealoufy.— In India

Part II. R r r 2 //

494

OF THE BRITISH GOVERNMENT

// muji accord ix;} I h the Govermiient required to fecttre the Allegiance
(f the Natives.— Hijlorical Sketch of the Eaji-Lidia Army
and Marine. Opinion of Lord Clive, after he had new-modelled
.the Army. Conjiitution of it on the EJ}abl'fhme7it of the ter-
ritorial Pozver of the Company. ---Chafiges which have taken
Place in the European and Sepoy Corps f nee that Period.— Stale
of the Militarv Eflahlifhmcnts in India, at the Conchifion of the

War, 1785-4. State of the Military EJiabliJhneiits in India

at the opening of the late IVar.—EJlimate of the Military

Charges at this Period. Defciencies in the Company s

Armies, in point of Recruits, in the Difcipline of the

Europe^an Corps, /;; the Confnfmi which has arifen in

adjufing the refpe^ive Ranks of the King's and Company s
'Troops.— I'he Arrangemetit of the Military Power, to be a
Subject of future Confideration.—Suggeflions on this Subje5l.-—
\Jl Suggefiion. The Indian Army to be an Eflablifhment
diflinB from the Britijh.—zd Suggejlion. The Appointment of
the Commanders in Chief to remain with the Company.
—^d Suggefiion. General Army Promotion to continue by
Seniority.— ^th Siiggcfi ion. The Appointment of Cadets to be in
the Court of Director s.— c^th Suggejlion. The Company to have

the fame Privilege of recruiting as the King's Army.

()th Suggejlion. Proportion of Recruits required annually.

7//6 Suggejlion. I}iJJribution and Subordination of the Com-
pony's Marine.— %th Suggefiion. Code of Military -Regulations
for India.— General Inference from the Whole of this Mi-
litary Syjlcm. *

THE

AND TRADE IN THE EAST INDIES.

495

SECT. IV.
^.-...^ *

1 H E military power in every government fignifies that Nature and
force which the Sovereign employs to defend his dominions military
from the attacks or encroachments of neighbouring nations, ^°^^'^'^'
or which he dire6ls to aid the magiflrate in carrying into
efFe6l the laws, by which the rights and privileges of his
fubje6ls are maintained and prote£ted.

In an abfolute government, both the conftitution of the ^'^Hmdoof-

o ' tan, It was

military power, and the rank of thofe who are to exercife coincident

, J jA^j rr-ii o • with the na«

It are enfily defined and underliood. The Sovereign here tureofthe
forms an army to be the inftrument by which he is to vemmcnfj"
render his government efficient, and, of courfe, he adigns
to it the firft and moll honorable rank among his fubjecSts.
Of this kind was the military power of the Moguls on their
firft: efliabllfhment in Hindooftan, and during the period
of their empire ; under them the Vizier or firft: Miniftcr
could afTume the command of the army, or he could en-
truft: this command to the Buxflii, who (properly fpeak-
ing) was a military officer only. Under this arrange-
ment it frequently happened that adventurers from Perfia,
Afghaniftan and Tartary, and fomc times from among the
Part II. Maho-

496

CHAP. I.
« >. '

OF THE BRITISH GOVERNMENT

Mahomedan inhabitants of India, had a rapid promotion in
the army, and had provinces allotted to them, of which
they fometimes became the Soubahdars. During the vigor
of the empire, thefe officers were removable at the plea-
fure of the Sovereign, bnt as its fall approached and the
energy of the adminill ration at Delhi became enfeebled, the
Governors of provinces began to attach the army to their
particular views and interefts, paid them by illegal extortions
from the inhabitants, and thus paved the way for ufur-
pation and a declaration of independent power. Events of
this kind, more than any other caufe, contributed to the
fall of the government ; for the moment the military power
in an abfolute monarchy begins to have any fource, but iii
the Sovereign, his authority is haftening on to its decline
and extin6tion.

In free and well ict^fulated governments, the conflitution

*—in govern- **>-■». o o '

ments like pf (-j^g military power is fubjedl to none of thefe contino;en-

Britain, it is /• i -r • • i t i i i "c «

difficult to cies, becaufe thofe who exercile it neither hold the firlt

asSecomcs rank among the fubjefts, nor have opportunities of render-

^oi'incaref- """S ^^^^^ authority dangerous. The military is here fub-

loufy ; ordinate to the civil power, and the army a perpetual fub-

je6t of jealoufy and of political reftraint. Out of thefe

circumflances has arifcn, in every free government, the

difficulty of rendering the military power equal to all the

purpofes of defence, and, at the fame time, of giving to it

.an energy and a confiftent arrangement.

AND TRADE IN THE EAST INDIES.

497

It is a military power of this laft defcription, which, SECT, iv.^
after the experience of a century, has been eflablifhed in
Great Britain, and it has required all the wifdom of the
Legiflature to define it in fuch a manner that it fliould
not become dangerous to the fubje6l, and yet fhould be
equal to all the purpofes of defence againft domeftic com-
motions or foreign enemies.

It may eafiiy be fuppofed, under fuch circumflances, that ^u^^g^f* j''
much difficulty will be experienced in forming a military with the go-

r ■ , A r ■ 1 • • r^^^ t-rr- . vernmeiu re-

power, luited to our Aliatic dominions. This dimculty quired to fe-
arifes from our notions of a military power in Britain, be- g^and^'of'the"
ing different from the chara6ter it muft poffefs in India; natives.
that fuch a power, however, muft be eflablifhed in India,
is obvious; that it muft accord with the government re-
quired for the natives and with the judicial and financial
powers in that government, will readily be admitted. That
it will require the full eft deliberation of Parliament to
give to it all its requifite charaders, and yet to accommo-
date it to the fpiritof the Britifli conftitution, is not lefs cer-
tain ; it muft confift of an army and a marine, equal to the
exigencies of war in India, whether againft native States and
Princes, or againft European nations having interefts or
trade in the Eaft, and to the vigorous fupport of the civil
and commercial eftablifliments ; it muft be formed in fach
a manner as not to throw an unconftitutional weight into
the executive or legiflative branches of the conftitution ;
and it muft be arranged upon principles fo fimple and de-
fined, as to prevent jealoufics either refpe6ting rank or cmo-
Part II. luments

4^S OF THE BRITISH GOVERNMENT

CHAP. I. luments among the different orders of men who are to
compofc it, or to direct it.

Upon the moft general view of thcfe requifites, in the
conftilution and eharadler of a military power in India, it
mufl- appear to every impartial judge, to be that branch in
the plan for the future government of our Afiatic domi-
nions, «pon v.hich men will be moft apt to form oppofite
opinions. The Company will naturally prefer the mili-
tary power Vvhich has eventually grown up under their ad-
miniftration, and procured its Afiatic ilominions to Great Bri-
tain ; and argue that it is experimentally the beft. The flate
will look back to the exertions which have been made, in a
fucccffion of ^\ ars, in fupporting the Company with aimies
and with fleets; and, from the public confidence to which
both arc entitled, confider that the military force ought,
conflitutionally, to be placed under the controul of the
executive government. The officers of the Company's ar-
mies will vvith reafon think, after they have devoted their
lives to a fervice of the mofl material importance to their
country, and weathered all the dangers to which an un-
friendly chmate and hard fervice have expofed them, that
both from their acquired knowledge of their duty, and
well-earned fame, they are entitled to the gratitude of their
maflers, and to participate in the rank and honors which
may be affigned to the Britiili military eftablilhment in
India.

Under

AND TRADE IN THE EAST INDIES".

499

marms».

Under fueh oppofite, but equally reafonable expc6la- SECT, iv,

tions, it is impoflible that the Legiflature or the Public can Hifto.icai

come to a decifion, by any other means than by reviewing Eaft'i "jVa °

the fa6ls in the intercfting IVlilitary Hiftory of Great Britain ^'''">' ^"'^

*^ ^ J . mart 11**.

in India.

The London Eaft-India Company when they fii ft eftablifh-
ed tlieir factories or feats of trade,,found it neceflary to fend out
military force to protect their civil fervants from European
depredators, as well as to guard their property from the vio-
lence and avarice of the country powers. The number of
thefe guards of fa6lories were gradually encreafed, and the
power of fabje6ting them to military difciplineand law
confered upon the Company by fuccefTive grants and char-
ters. The ftate was convinced, at an early period in the
Company's progrefs, that the mercantile plan of purchafc
and fale, without a force to prote6l the merchandize,
would be unintelligible to the natives ; and that the trade
to the Eaft-Indies muft be relinquillied, unlcfs the feats of
it could be protected. A power was accordingly given to the
Eaft-India Company to exercife martial as well as civil law
within their limits. The ftate was alfo fatisfied, that it muft
authorize the Company to purchafe from the Moguls or
their officers, permillion to fortify the feats of their trade^
and to defend the circumjacent diftricSts which furnilhed
provifions to their fervants. Hence the fource of the
powers of the Company to make war or peace v/ith the
country powers, to eftablifli a marine, to embody an army,
and by it to fecond their commercial enterprizes..

Pajrt IL S s s Thk;

5C0 OF THE BRITISH GOVERNMENT

CHAl\l. The London Company had to ftruggic not only with the
power of other European companies, and to ward off the
attacks of the native powers ; but it had alfo to rcfifl: the
interlopers who, under the authority of hcences from the
crown, were endangering almoft the exiftence of the trade.
It may eafily be fuppofed, that the Company's garrifons, at
this juncture, would be compofed of the very dregs of the
people, and be commanded by officers who neither hadknow-
ledge fufficient to diicipline foldiers, nor the feehngs of
honor eflential to the miHtary chara6lcr. Hcnee. even at
Bombay (the principal feat of the Company's ancient mi-
litary power) nothing but the fenfe of fafety kept the
troops to their duty. In feveral inftances, they were as
ready to join the interlopers, as to fupport the madcrs to
whom they had taken the oath of fidelity. The marine
of the Company, at that fettlem-ent, from an imitation
of the difcipl'ne in the Britifh navy, vras better conflitutcd
than the army, and of more eflential fervice ; though ftill
it was not equal to the wars in which this prefidency were
involved. Hence the afllflance of the King's flnps became
neceflary in the expedition againft the pirate Angria, and
in that for obtaining the Tanka of Surat ; and this, ^ven,
after the commencement of the war which terminated in
the acquifition of our territories.

The troops which the Company kept at Calcutta, as
well as the marine on that P^ation, were inferior to thofe
of Bombay ; for it was not till France had begun to carry
into efFeft its ambitious fcheme of becoming an Indian power

AND TPvADE IN THE EAST INDIES. 501

on the coaft of Coromandel, and had fet the example of sect. iv.
embodying regiments of natives, to be commanded by Eu-
ropean officers, that the Company thought of forming cither
military or naval eftablifhments equal to the defence of their
fettlements.

Such were the events and circumftances which firfl led the Opinion of
Company to encreafe their European and Native troops, ^fter he'had
and to procure for them the privilege of fharing in the ■newmodciied
booty or prizes taken in war, in common with His Ma-
jefty's navy and forces, by which they had been affifted.
A fhort time, and brilliant fuccefles, enabled the Company
to fupport military eftablilliments, proportioned to the fer-
vices required in their new dominions ; and led Lord Clive
to the companion, " that formerly the Company's troops
*' confifted of the refufe of our gaols, commanded by an
'^ officer feldom above the rank of lieutenant, and but in
*' one or two inftances with that of major; without order,
*' difcipline, or military ardor : that now" (meaning the
period after our acquifitions in Bengal and on the Coro-
mandel coaft) " the Company's armies were equal to thofe
*' of any European monarch, in number, difcipline, and
"fkill."*

It becomes, therefore, neceffiary, to ftate the circum- Conftitu-
ftances which marked the formation of our Indian army, the eLbfifl""
which, with thofe that led to the eflablilhment of the Com- '"e";°fthe

' terntonal

power of the

Company.
* MS. in the poneluon of the Right Hon. Henry Dundas.

Part II. S s s 2 pany's

502 OF THE BRITISH GOVERNMENT

CHA?. I. pany's marine, will lay open the nature and extent of both,
and enable us to judge of the alterations which it may be
proper to introduce into either department. After the
Company acquired its pofleffions, large military eftablifli-
mcnts were formed in Bengal, and on the coall of Coro-
mandel ; and a confiderable army and marine kept up on
the Malabar coaft, though our pofleffions, in that quarter,
had as yet extended little beyond their ancient limits. Each
of thefe eftablilliments was diflinil from the other, in the
military fcnfe of dillindtion, viz. the cadets, who v/ere fent
out to thefe feparate fettlements, took tlieir rank in the
army of each of them, rofe by feniority from the lovveft to
the higheft commiffion, and could not be transferred from
one eftablilhment to another, without the confent of the
Direclors. When the troops of thefe fettlements a6ted in
a body, however, the command devolved upon the officer
of either, whole feniority in rank entitled him to afTume it. In .{

each fettlement too, there was a corps of engineers, and of f

artillery, the officers of which had obtained both regimental
and army rank.

Changes It was impofliblc that this force could be compofed en-

txkt^n place in tiicly of Europeans, though both the Company and Go-
andsrov"" vernment, at that period, were of opinion, that a body of
co.ps, iince them lufficicnt to lead on and to encourage the Sepoy corps,
was required from the nature of the fervice. Hence the
permiflion which the ftate gave after the peace 1748, and the
peace 1763, to the foldiers of the King's regiments return-
ing fi om India, to enlifl; in the Company's fervice ; and
•* hence

thv.t period.

AND TRADE IN THE EAST INDIES. 303

Iience the encouragements which were held out to the SECT. iv.
K'ng's officers to accept of commiiTions in the Company's
armies and marine*. European regiments, of confequencc,
were formed in each of the Prefidencies, and a flill larger
proportion of Sepoy battalions embodied, to be d^fciplinedaud
commanded by European officers. No dift:in6lion, however
was introduced between the officers of the European regi-
ments and the European officers of the Sepoy battalions j
on the contrary, the cadet was placed in either, as a
vacancy upon his arrival required his fervicc. His rank
went on in the army by feniority, and his promotion was
made as vacancies happened in the rank to which he was
entitled. By thefe means an officer often pafifed from the
command of a Sepoy to that of an European battalion, and
from his habits and knowledge of the language of the
country, as well as of the routine of the fervicc, was equally
fitted for either ftation.

Tt is here to be adverted to, that though the European
officers difciplined and commanded the Sepoy battalions, thefc
corps had alfo their native officers, accountable to the Euro-
pean Commander, for the conduct of the foldicrs under
them. Hence, when any crime was committed by a Sepoy
foldier, he was tried by the military law, in prefence of the
native officer, to whom was affigned the infli6tion of the
punlfliment he had deferved. It was by this meafure, as
well as by the fenfe of intcreft, that the Sepoy corps became

* Company's correfpondence at both of thefe periods.

Part II. attached

;o4 OF THE BRITISH GOVERNMENT

CHAP. I. attached to a fervice, in which a proper regard was paid to
the prejudices and pecuharities enjoined by their ulages and
rehgions. Attention ^yas alfo given to excite emulation
among them, as well as dependence on the European officer,
by having one-half of the battalion compofcd of Hindoos,
and the other half of Mahomedans.

The regular fupply of cadets from Europe, and the wife
inftitution of Lord Clive, of giving to each battalion its pro-
per proportion of field officers, and of forming the military
force, in each fettlcment, into one or more brigades with their
proportion of field officers, in a fhort time produced a very
material change upon the difcipline of the Sepoy corps,
and upon the lentiments of the officers with respect to the
command of them. It now became an objc6t not only of ambi-
tion, but of intereft, to be removed from the command of an
European regiment to that of a Sepoy battalion, till in later
times it has been a rule of the fervice, for the youngeft
officers entitled to command a battalion, to have the Euro-
pean corps affigned to them. This circumftance had the
effe6l of giving to the Sepoy corps the oldeft and moll ex-
perienced officers ; men who had conducted a variety
of expeditions, and who united in their characters the
habits of military obedience, as well as the capacity to com-
mand. It had alfo the cffe6l of rendering the Sepoy batta-
lions equal, if not fuperior to the European, in diiciplijis
and in military ardor, illuftrating thus the maxim,, in the
a:t of modern war, that diicipline will make men, in every
fituation, capable of acquiring excellence in it. Nor has
the fa6l been found contrary to this theory ; fince one Sepoy

■♦ corps

AND TRADE IN THE EAST INDIES. 505

corps crofTed the' Continent of India, while the Bombay SECT, iv.
army, with its proportion of Europeans, were unable to
refift the Mahrattah power; and another had the fteady
difcipline to receive on their bayonets and to dilperfe the
French infantry at Cuddalore, So great were the exigencies
of the fervice, during this war, that the Governor-general
and Council were obliged to have recourfe to the dangerous
expedient of forming a native corps of artillery, whofe
fervices, in the celebrateti expedition of General Goddard,
were publicly acknowledged and rewarded.*

Such have been the circumflances which have marked
the rife and progrefs of the Company's military eftablifh-
ments down to the conclufion of the war 1784.

At the end of this war, the Bengal eftablilhment con-
fiftedof aresiiment of artillery, of 1000 privates, and 8 c offi- ^'*f^ °^^^^

'=' _ ■' ' . . -^ military efta-

cers, with an independent corps of native artillery compofed briiiimcius ia
of two hundred Golandauze; each of the battalions (into which concUifioa of
this regiment was divided) had their proportion of Lafcars+. Lgw?
On the Bengal eftablilTiment alfo, was a corps of engineers,
confifting of fourteen officers, three regiments of European in-
fantry, confifting of 1000 men each, with yy officers,
making in the whole 3531 effi;6live men. Upon this efla-
blifliment alfo, were ^6 regiments of native infantry, and
one of light infantry, each compofed of 1050 men, with

* The rjon commiffioncJ officers and pi ivates of this corps, upon their return to
Bengal, had filver medals prefeuted to them by the government, and lands affigned
thcin as a retreat.

f The Lafcars fcrvirrg with the artillery as a body of natives, trained to take the
laborious parts of this duty. At the conclufion of the war, they amounted to about
5000, bt t arc not included in the fubfcquent returns of the army.

13 officers

5ot

OF THE BRITISH GOVERNMENT

CHAT. I. 13 officers to each, making in the whole 481 European
' ' officers, and 38850 natives. The cavahy on this eftablifh-

ment confided of four regiments, each compofed of 14 Eu-
ropean officers, and four non-commiffioned officers, with
534 natives, making in the whole 72 Europeans, and 2136
natives. Befides this regular army, in the year 1782-3^
fome battalions were raifed at Chittagong and Buxar, which,
with the militia, confifted of 59 European officers, 12 non»
commiffioned Europeans, and 8296 natives; to this force
may be added, a company of European rangers, compofed
of deferters, chiefly from the French fcrvice, amount-
ing to 114 privates, and four European officers, a fmall
body of European cavalry, and the Governor's body
guard, confifting of fix Europeans and 108 natives. The
whole cftablilliment in 1782, thus comprehended, of Euro-
peans, 938 officers, and 4446 non-commiffioned officers and
privates, with 49390 natives, or about 54774 men.

At the fame period, the Madras ellablifhment confifted
of a battalion of European artillery, compofed of 66 officers
and 800 privates, with the proportion of Lafcars. A corps
of European engineers of 14 officers, two regiments of Eu-
ropean infantry, having 67 officers and 1 134 privates eachj>.
making together 134 officers and 2268 privates. A troop
of cavalry of three officers and 58 privates ; 29 battalions
of native infantry, confifting of 11 officers, 87 non-com-
miffioned officers (Europeans) each, with 908 natives. A
battalion of light infantry, with tlie fame number of Eu-
ropean officers, and 782 natives, making in the whole 54a

Europeans

AND TRADE IN THE EAST INDIES. 507

Europeans and 27140 natives ; to this force may be added, sect. iv.
23 independent companies, with 23 officers and 23 non-
commifTioncd European officers each, and 1794 natives;
fix battalions of Sibbendy corps, compofed of 24 offcers
and 120 non-commifTioned officers (Europeans), and 6000
natives ; a militia with two officers and 15 non-commiffioned
officers (Europeans) and 2 151 natives. The regular Madras
eftablirtiment, thus, was compofed of 596 officers 3494 nou"
commiffioned and private Europeans, and" 37085 natives*.
At the fame period, the Bombay eftablilliment confifted of
one battalion of European artillery, of 34 officers and 416
privates, with its proportion of Lafcars ; a corps of engi-
neers compofed of 13 officers; one battalion of European
infantry, comprehending 78 officers and 1448 men, 16
battalions of native infantry, each confifting of 7 officers,
II non-commiffioned officers (Europeans) and 854 na-
tives, making 112 officers, 176 non-commiffioned officers,
and 13,664 natives; one battalion of native Portuguefe,
compofed of 6 European officers, and 465 natives ; to this
force m.ay be added, a corps of irregulars, at Tellicherry,
amounting to about 267 natives. The Bombay eftablilliment
at this jun6ture (1782) thus, amounted to 243 officers^
2040 non-commiffioned and private Europeans, and 14396
natives.

* Though fuch was the regular Madras eftabllrtimcnt m 1782, there was, during
the war, an additional force of four regiments of cavalry, taken from the Nabob's
into the Company's pay ; a battalion of native infantry was likewife raifcd, during
that peritxl, confifting of eleven officers, eleven non-commiflioncd offieexs, Europeans,
and eight hundred Natives.

Part II. T 1 1 ' Thk

5o8 OF THE BRITISH GOVERNMENT

CHAP. I.^ The whole of the Company's military eftablifliment,
then, at the conclufion of this war, may be calculated at
1 12628 men, to which, if His Majefty's troops, then ferv-
ing in India, fhall be added, the whole of the Britifli force,
fei'ving in India, may be calculated at 124000 men.

The expenfes of fupporting fuch'a force (if an allowance
fliall be made for the batta, or double pay, given to the
troops in the field) with the charges for the King's troops,
may be calculated at about ^.4,000,000 per aimum.

This will appear from the following return of the army

Calculated
Total. Expenfes.

54j774 C- i,945o'I4

41.175 55i>i92

16,679 255,490

for 1782.:

Europe

ans.

Natives.

Officers.

Privates.

Bengal - 938

4.446

49.390

Madras - 596

3.494

37.085

Bombay 243

2,040

14.396

1.777 9.9S0 100,871 112,628 J^.2,732,196

To this force may be added, ten of His Majefty's regi-
ments fent out from Great Britain and Ireland to India, in
the courfe of the war, and two Hanoverian regiments, th«
eftabhdmient of which amounted to 9024 Britifli

2164 Hanoverian

11,188^

This eftlm.'tte is exclafive of officers.

The

AND TRADE IN THE EAST INDIES. 509

The total of the military expenfes in 1782-3 appear, SECT. iv.
from the accounts laid before Parliament, to have amounted
to ;/r.4,ooo,ooo flerling per annum.

Though peace was rcflored in 1784, and it was necef-
fary to keep up a reipectable force in India, it became ex-
pedient, for the purpofe of reducing the expenfes, to new
model the \\ hole of the military expenfes.

Before mentioninc: the returns of the army in 1788-0, Stateofthe
or the amount or the expenses, will be proper to recollect biiihment in
the ftate of Europe, at this jundlure. The defence of our openin^oV*
Afiatic poflefllons required a reinforcement of four regi- 'he Luc iv.u-.
ments of foot. Upon their arrival in India the King's troops
amounted to nine regiments of foot, and one of cavalry,
confifting in thev^holc of 387 officers, 56 ftafF, and 7602
nqn-commifiioned officers and privates. Thefe troops were
not allotted to any particular fettlcmcnt, but intended for
fuch general fervices. as might be required from them. The
regiment of cavalry and fix regiments of infantry were con-
tinued at Madras; a circumftancc which enabled that prc-
fidency to reduce their native infantry from 36 to 30 bat-
talions ; two regiments were ftationed at Bombay, and one
at Bengal. The general ftate of the military force in India
in 1788-9, will appear in the following return of the
army :

Part II. T 1 1 2 BENGAL.

OF THE BRITISH GaVEKNMENT

BENGAL.

]

tUROPEANJi

NATIVK3,

Officers.

Non-Commif-
StafT. iioned and
Privates.

r ■■ *

Artillery, 3 battalions

12 1,110

European Infantry,
6 battalions - - -

162

30 3,696

Engineers - . - -

Native Cavalry, 2 regi-
ments - . - .

£ 2:

468

Native Infantry, 36 bat-
talions- r " " "

336

72 288

23,040

609

116 5,096

23,508

MADRAS.

Artillery, 2 battalions

European Infantry, 2 dit

Engineers - -^ - -

Native Cavalry, 5 regi-
ments _ ~ - .

Native Infantry, 30 bat-
talions - - - -

to loS

2,464

22.

2,460

280

103

240

19,200

499

3.474

21,660

BOMBAY

AND TRADE IK THE EAST INDIES.

511

SECT. IV.

BOMBAY.

EUROPEANS.

1 1*

NATIVEir

Officers.

N
Staff. i

on-Commif-
loned and
Privates.

r ^

Artillery, i battalion

370

Engineers - . - .

European Infantry,
2 battalions - - -

1,232

Native Infantry, 12 bat-
talions - - - -

112

96
1,698

7,680

205

7,680 Total.

Total Company's troops
Total King's troops -

i>3i3
387

1,700

257

3'3

10,268
7,602

17,870

, J

52,848 64,686
8,045

52,848 72,731

Total Europeans - -

19,883

Upon the approach of the late war with Tippoo Sultan,

it became necclTary to make additions both to the King's and

to the Company's troops. One troop was added to the

Kmg's regiment of Cavalry, and two companies to each of

the regiments of Infantry. A detachment alfo of the Royal

Artillery was fent out, under a field officer, confiftingof 245

effecftive men. By thefe additions, the number of King's

troops ferving in India, was about 10721. For the fame

reafon the Company were obliged to encreafe tbcir Sepoy

corps from eight to ten companies in each regiment, which

has made an addition, of about 12870 efl'edives.
Part 1L Thk

312 ■ OF THE BRITISH GOVERNMENT

CHAP. I. The charges of To large a mllitavy edablillimcnt, agrcc-

Eftimatcot ably to the flatemcnt laid before Parliament ia 1788-9

diargesat"^^ (including military contingencies and the cxpenfe of inva-

this period. jjj^^ &c.), might amount to about ^.3,900,000 per annum.

In this charge, however, the expenfes of the King's troops

are included as the Company have defrayed the charges of

thofc fent out fmce the late war, and paid to the Crown

2 lacs of rupees or (at 2s. id.) yr.20,833 for every regiment

of 1000 men. The Company alio defray the contingencies.

Deficien- UpoN a general view of fo larjre a military force in India,

cies in the t) r> .' '

Company's it Certainly might be deemed equal to the purpofes df pro-
tc£linc: the Britifli fcttlements from the attacks of the Eu-
ropean or of the native powers, as well as for thofe of fup-
porting the government in the different Prefidencies.
Several embarralling circumftances, however, have occurred,
both during the war and fmce the peace 1784, which have
experimentally proved, that the military arrangements in
India arc deficient, and that they require amendment and
reform.

— iiipomtof It has, in the fii'fl: place, been found, that the European

recruits, corps in the Company's fervice have been deficient both in

men and in difciplinc, and fcarcely fitted for any but gar-

rifon duty. The fource of the deficiency requires to be

explained. 1

The Company have hitherto been precluded from re-
cruiting with the fame ad\antages w hich tlie King's troops

s «"joy ;

AND TRADE IxV THE EAST INDIES. 513

enjoy; and, at a great cxpenfe, have been compelled to sect. iv.

icek their men from the refufe of the capital and of jails, or

to accept of defcrters from the King's regiments. Neither

in morals nor in conflitution could fuch men be fuppofed

qualified for military lervice, much lefs for one in a climate

which requires youth and vigour to habituate the European

to its varieties.

In the fecond place it has been found, that the mofl: — inthcdir-
experienced officers, in the Company's fervice, have been ^p''"*^ °^ ^^^
promoted to the command of the Sepoy corps, inftead of being ^°'^Ph
attached to the European regiments. If, originally, the com-
mand of an European battalion was the obje6l of ambi-
tion to the Company's officer, now, that of a Sepoy re-
giment attracts his wiflics : in this fituation, he knows, that
he has the beft chance to obtain a feparate command, as
well as the fairefl profpe6l of acquiring a fortune. When a
vacancy, therefore, takes place in a Sepoy battalion, it
is filled up by the oldefl officer commanding an European
regiment ; and the officer promoted, from the inferior
rank, takes his place. Hence the reafon why Lord Corn-
wallis found, *' that the European regiments were inferior
in difcipline to the Sepoy corps." The embarraffinent al-
ready referred to, under which the Company are placed ia
recruiting, fufficiently explains the difficulties which they
have experienced in finding a fufficient number of fcrviceable
men. Both of thefe circumftances may be illuftrated by
his Lordfliip's report of the artillery, which he pronounced
*•' to be equal to any in Europe." From thi§ regiment the
Part. II. officer

ifr^ OF THE BRITISH GOVERNMENT

CHAP. I.
' . '

officer has no opportunity of fh if ting to a Sepoy battalion ;
of courfe, his attention is fixed on the diicipline of his
own corps only. This regiment has, befides, a choice
from all the recruits which arrive from Europe, leaving the
refufe to the infantry battalions. It would, therefore, be ha r(h
to lay the blame of a deficiency in the European infantry,
upon the Company, when the circumftances are explained,
that tl^e moft experienced officers, in the line of their fervice,
are promoted to the Sepoy regiments, and that under the re.
ftraints of recruitmg in Europe, it is impradticable for them
always to find ferviceable men.

_.^ ^ In the third place it has been found, tl-iat jealoufies of

fufion which a daugcrous kind havc fubfiflcd between the King's troops,

adjuiHngthe fctving in India, and thofe of the Company. The King's

ran'T^fof'thc officers havc complained, that the Company's regiments

Kino's and were better paid than they were, and that all the profitable

Company » '■ ■ '■

troops. flations had been affigned to them. The Company's offi-

cers havc complained, that the King's, though they had only
ferved, in many inftances, for two, three, or four years,
yet, from their rank, were placed over them, after afervice
of twenty or thirty years, and with local knowledge, of
which it was impoffible the King's officers could be pofleiTed;
that it was a well kown fadl, to the Generals who had led
the Company's armies to viftory, that the Company's armies,
particularly thofe on the Bengal eftablilhment, were familiar,
from long habits and fervice, with the languages, the
ufages, and the prejudices of the Sepoys, whether Maho-
medans or Hindoos ; that thefe circumftances had induced

the

AND TRADE IN THE EAST INDIES. 515

the natives to follow them over all the countries of India, sect. iv.
in which they had diftinguiflied themfelves by a zeal and
a fidelity as honorable to the commander as to the foldier ;
and that this was an important and a public end, which a
ftranger, however inftrudted or able in the military art,
neither could hope for nor command.

Such are the circumflanccs under which the military
power in India is placed. On reviewing them, Parliament
may experience difficulties in introducing an arrangement
which on. the one hand, (hall be fuited to the preferva-
tion and protcftion of dominions almofl: encircling the pe-
ninfula of India and extending over the richefl provinces in
its center; and on the other, which fhall, by its charac-
ter, neither add unconftitutional vv-cight to any of the bran-
ches of the government at home, nor excite in an army
compofed of fuch diverfified orders of men jealoufy or op-
pofition of each others interefts.

It may be expedient under all the exiftingcircumftances, Thearran!!:e-
that the final arrangement of the Indian army ihould re- Zlilt^ry
main as a fubjedl for future difcuffiion. For this delay f^""|,'|!^"ff,^.''
there is a precedent in the Hiflory of the Britilli Military turecontidc-
Power in India. It was not till the return of Lord Clive and
of General Laurence (and they were the officers who firft
formed the army and acquired our dominions) that the
Court of Dire6lors gave the prefent arrangement to the
military eftablifliments of the Company. — Lord Cornwallis,

Part II. Uuu ^Vho

ration.

5i6 OF THE BRITISH GOVERNMENT

CHAP. I.^ ^yj^Q }^as brought the Indian army to its prefent improved
ftate, and confolidatcd that empire of which Lord CHve
laid the foundation?, merits the like attention from the
Diie(5lors and the Lcgiflaturc ; even if the difficulty of
fixing this important part of the Indian fsfteni, did not
call for his talents and experience.

It may be proper, however, upon renewing the Com-
pany's charter, that the Legiflature iliould have as fiibjeds
for their confideration the fuggcftions which have, from
time to time, been afforded by his Lordfhip, and the officers
who have diflinguifhed themfelves in the late fuccefsful
war.

Firftfuggef- First. It has been fuggefted, that the whole army,
indUn army European and Native, Ihould be declared to be a foreign
biifliment diV- eftablifhment, diftinct from the Britifh ; and that it fhould
Br"i2ih.°'""'' confift, as at prefent, of the Bengal, Madras, and Bombay
departments. That each of thefe departments fliould be
compofed of European and Sepoy branches : the European
branch, in the Bengal and Madras prefidencies, fhould
confift of cavalry numbered ift, 2d, &c. regiment, with a
fimilar corps for Bombay (if cavalry Ihall be required to
defend our new dominions on the Malabar coaft) of Eu-
ropean infantry numbered ift, 2d, &c. regiments ; of a
regiment of European artillery, for each prefidency, com-
prehending one or more battalions, in proportion to the
number of troops required for the proteftion of each fettle-
ment, and of a diflind corps of engineers for each. That

the

AND TRADE IN THE EAST INDIES. 5,7

the Sepoy branch fliould confift, in the fame manner, of sect. iv.
regiments of cavahy and of infantry, proportioned to the *'~^

extent of the territories, and to the nature of the fervice in
each prefidency. That the army, on each eftablifhment,
fhould continue to be fubdivided into brigades, with tlieir
requifite field officers.

In iUuftration of thefe opinions, it has been thought,
that a complete feparation muft be made between the Indian
eftablifliment and that of Great Britain ; and that this
feparation fliould be complete, in the military fenfe of the
word ; that is, the officer belonging to the Britiih army,
fhould not be allowed to exchange his rank, or be entitled to
promotion in the Indian, and vice verfa. Though this may
appear to be a hardfhip, it has become abfolutely neceffary ;
becaufe it will prevent an unconflitutional augmentation
of the military eflablifhmcnt at home, and fix the Indian
army in that flation where its fervices are required ; be-
caufe the revenues of India iTiould be fpecifically appro-
priated to the fupport of the force which is to protedl
and defend India ; and becaufe it will give a proper en-
couragement to men who have devoted their lives to a
foreign fervice and experienced the dangers incident to
foldiers in a trying climate. The very nature of the In-
dian fervice, indeed, requires that this feparation fliould
be confirmed ; otherwife exchanges might take place, be-
tween the officers of the Britiih and Indian army, totally
incompatible with the good of this laft fervice. When an '

Part II, U u u 2 Indian

.,8 OF THE BRITISH GOVERNMENT

(.'ii-xr. I. Indian officer had acquired a fortune, he would be difpofcd
to return to Europe and to exchange with a Britilh oiFxer.
By fuch a traffic, men who had ruined their circumftanccs
or conftitutions in Europe, and who mufl be flrangers to
an Indian campaign, would have an opportunity to ac-
quire a rank in that army, and fupercede or ftop the pro-
motion of thofe whoTe conilitutions had become naturalized
to the country,. To this private might probably be
added a public evil : fmce thefe exchanges would generally
be made by Britifli officers \\ith field rank, who neither
in conftitution nor mihtary habits could be qualified for
the important commands to which this rank would entitle
them in India.

Second fug-
geftioii. The
appointment
of the com-
manders in
chief to re-
main with
the Com-
pany.

Second. It has been fuggefled, that the Commanders in
chief whether they fliall, at the fame time, be the Governors
or not, Ihould, as at prefent, be in the nomination and
appointment of the Direi5lors, adling in concert with the
executive power, more particularly as His Majefty is legally
veiled Avith the power of recalling them. The realons
offi^red to fupport this fuggeftion are, that the Dire6tors
having the territories, under the control of the Commif-
fioners^for the affairs of India, entrufted to them, ought
to have a feleftion of officers, who from capacity and ier-
vice, may be qualified for thefe important ftations. Pro-
motion to a firft command, by fcniority alone, might often
be inconfiftent with the public fcrvice, and, in many cafes
repugnant to the exertion and ambition fp efTential in the
military charader.

Third.

AND TRADE IN THE EAST INDIES.

S^9

Third. It has beenfuggefVed, that general promotion by SECT. iv.
fenioriy, fliould continue in the aimy, but under certain mo- Third fug-
difications. Seniority, perhaps, is the only line pra6licable ncraUrmy °'
in an army, removed at lb trreat a diftance from the feat of P'on'otion to

. ■' _ o continue by

fovereignty, as India is from Briain, and ferving in a Seniority.
climate where every encouragement, particularly that of cer-
tain promotion, is required. At the fame time, this principle
will require to be modified in its application. It has been
recommended, that the commanders in chief, on the fpot,
who are the beft judges of claims for promotion, fhould
be veftcd with the power of fclecling officers, entitled by
their rank and character to feeondary commands.

Fourth. It has been fuggefted, that the nomination of Fourth fu^-
the cadets for the army fhould continue in the Direcflors : ^'^%"- ^"^"^

•' _ ' appointment

that the date of a cadet's appointment fliould decide his f>t c^'J^ts to

. - . A 1 -I- /- be in the

rank m the lervice. As, however, upon military fupe- Court of Di-
riority the fafety and profperity of our Indian pofTeflions and '^^^ '^"*
trade muft depend, it has been thought, that the Court
fliould be limitted in their choice of the cadets for the artillery
and engineer corps, either to fuch young men as have been
trained in the Royal Academy at Woolwich, or to fuch as
may fubjedt themfelves to an examination by it, before their
appointments can be held as complete. And it has been
recommended that the Commander in Chief and the Military
Boards, at each Prefidcncy, fliould be empowered to feleft
fuch of the cadets for the European or Sepoy fcrvice, as
they may deem the beft qualified, to fill up vacancies

Sto OF THE BRITISH GOVERNMENT

.CHAP. I. in either; but that being attached to one of thefe -corps,
tlie cadet ought to continue in them as long as the regular
line of promotion will admit.

Fifth fu.^gef- Fifth. It has been fuggefted, that the difficulty under
Compaify w which the Eafl-lndia Company (fuice the firft eftabliihrnent
have the fame of their army) have been placed in raifmsr recruits, (hould

privilege of •* ' ^ ^

recruitini;, be removcd and done away. However much Government
army! "^ * ^^^ been difpofed to encourage the recruiting fervice of the
Company, the mealures which have been devifcd have
been found inefFe6tual. By the feparation of the Indian
European army from the Britifli army, the recruiting orders
for the former might, as for the latter, be immediately
iflucd by the King's authority. The recruiting officer would
thus be entitled to enlift men from all the Britilh European
dominions, and to have them attefled before a magiftrate in
a legal and public manner.

Upon this fubje6t, different plans have been thought of,
with the general objed of conferring this neceffary privilege
on the Company, and yet rendering it neither an incon-
veniency to the Public, nor the means of draining the
Britifli dominions of ufeful inhabitants. Thefe plans have
had fpecific objecls : fome of them have had in view to aid
the police, by employing i'uch ufelefs and dangerous perions
as have been found difturbing the public peace : others of
them, for relieving the Public of fuch perfonsas lor petty
crimes may have expofed themfelves to puniOiments, v.hich
though neceffary for the good of the community, yet are not,

AND TRADE IN THE EAST INDIES. 521'

in many cafes, proportioned to their crimes. In both of SECT. iv.
thefe plans the general intention has been merciful, from
their agreeing in refcuing from puniihment youth, who,
without parents or refource of any kind, may have become
immoral from neceffity, or vicious from imitation.

Upon this fubjeil, it might be expedient that the age of
a. recruit (hould be fixed, in time of peace, from 12 to 22.
The age from 12 to 15, however, ought to be the general
rule. At this period the conftitution is in that flage when <
the dilcafes that originate in vice can fcarcely befuppofed to
have debilitated it; and even fuppofnig the health to be
partially impaired, when it may, in almoft every cafe, be
reftored. The conftitution befide^;, at this period, will
eafily accommodate itfelf to the varieties of climate ; for the
pradice of labor of any kind has not as yet given to it
that caft, the turning from which commonly brings on
putrid difeafes. It is a known fa6t, that the deaths which
happen among the motley affemblage of recruits fent out by
the Ccmpany, chiefly take place among thofe who either
have lived long in the habits of vice, or who having been
habituated to a trade of a fedentary kind, fuffer, from the
hardlliips incident to a foldier's duty.

It might alfo be expedient, that a depot for the recruits
deftined for the Indian fcrvice, fhould be allowed to the
Company, and placed under the direcftion of officers who had
fervcd in India (not invalided officers, who will naturally
come on half pay) and who having come home to Europe

Parx II. for

y_2 OF THE BRITISH GOVERNMENT

CHAP. I. for the recovery of their health, might continue to receive
their emolun:ients, and in return, train men for a fervice
to which they are ihemfelves to lead them. At this place
offers might be held out to indigent and helplefs youth, of a
comfortable I'ubfiftence and of honorable employment. Cir-
cumflances which would produce the immediate effeft of
drawing to it the thoufands of deftitute young men that
fwarm in the capital and in all our large towns. To fuch an
afylum they would rcfort with the confent of their parents,
or if they had none, would feck refuge in it, of their
own choice. It perhaps might not be improper to
give fuch po%\ers, as the law will «ilow, to magiftrates
and juftices of the peace (or under the late police eftabliili-
ment in London and Wcftm^nfter to the jufticcs of police)
to offer this retreat to boys of the preceding age and de-
fcription, who beiiig too y/ung to become proper objcdts
of punifliment, for the petty irregularities to which their
indigence may have expol'ed them, might thus be rendered
ufefui fubjecls to their country. The very crcumftance
of the infamy attached to their puailhment being removed,
by their being blended with others in a fervice of credit,
would have its effe6t, in recommending it to their choice, and
could not fail of bringing numbers to embrace it ; nor could
they in the fituation now fuggefted, have opportunities of
returning to their fprrncr couri'e of life.

AND TRADE IN THE EAST INDIES. szy

It might alfo be expedient, that proper mafters fliould sect. iv.
be appointed at the depot, to inftrii6l them in thofe branches
of education which carry a foldier up to be a non-commif-
fioned officer ; that they fliould be taught, on their ar-
rival at the depot, the military exercifes and be accuftomcd
to the ordinary regimental duties in the army; and it
might be a general rule, when the demands in India would
admit of it, that the recruit Ihould remain for the fpacc
of one year in England, before his embarkation; this
time and that required for his paffage to India would fit
him for immediate fervice, and of coufequence render the
army in that country conftantly effeiSlive*.

One of the great obje6lions which may be made to an
open recruiting privilege, for the Indian army, will arife
from its interference with the recruiting fervice for the
Britifli army; but, in the firft place, the age at which it is
propofed to take the recruits for India, is, upon the whole,
below that which qualifies a recruit for the home army ;
in the next place, in the time of peace, there will always
be afufficient number of this defcription to fupply the In-
dian army ; and, in the laft place, in the time of war in
Europe, it might be made lawful for the Company to pro-
cure fuch Swifs, German, or other foreigners for the Indian
depot, of the fpecified age, as could be obtained by a com-
munication with the Continent, where the Britifli fervice
and pay would at all times attra6l a fufficient number.

* It was upon a fyftem fimilar to this, that the French recruited for the regiment
Jfi Cokmei, and kept it diftind i'loin their EuropjHn military cft.ibliilimeiu.

Part II. X x x As

Of THE BRITISH GOVERNMENT

CHAP. I. ^\s the artillery fervice in India is that upon which our
fupcriority in the art of war depends, and as the army*
for the defence of our Afiatic dominions, though it remains
with the Company, is under His Majefty's proteftion, it
, may be expedient, that this corps be fupplied, either with

fuch recruits from the depot as may be found from capa-
city, education and fize, fitted for that fervice, or with
fuch volunteers from the Royal Artillery at Woolwich, as
the Board of Ordnance can with conveniency fpare. This,
inftcad of being an injury to that regiment would, on the
contrary, open a new objcdt of ambition to the Matrofl'es
w ho ferve in it, and procure an ample and full i'lipply of
recruits.

Sixth fiK^ref- Sixth. It has been fuggefted, that it ihould be left with the
tion. Pro- Commauders in Chief, at the different fettlcments, to place

portion ot . .... ,. ^

Recruits re- the rccruits upon their arrival, (and by the prccedmg fyf-
iluaUv. "' tem, 2500 may be annually fent out in the Company's ihips)
in the different corps where their fervices are required.*
This would have the effe<5l of preventing difputes among
the commanders of regiments, and leave it entirely in the
power of the refponfible officer, to account for the flate of
the regiments in the army under his command.

Seventh fug- SEVENTH. It has been fuggcfled, that the marine be-
jjeibon. Dif- longing to the different Icttlements lliall continue, as at pre-

)ubordin:ition

of the Com- r,. ,-, ,. . , , . ,

panv's ma- * The Company's ufual licence has been, to fend out 2500 recruits annually.

lent.

AND TRADE IN THE EAST INDIES. 52.

fent, under the direcliGn of the Governors and Councils', fub- SECT- iv.
ject-as hitherto, to the orders of the Diret'^lors at home and of
His Majefty's Commiflioners for Indian affairs ; and abroad,
in time of war, to the commanders of His Majefty's fleet,
after they have received an order from the prefidencies to
which the marine belongs. Tiie prefent marine efl:ablilli-
ment of the Company on the Bengal ftation, confills
of 12 pilot veffcls and four budgero\A'S, which, with the
dock charges, cofl: the Company about ^(".57,004 per
annum. The Bombay marine confifls of 19 vcflels, carry-
ing from 6 to 18 guns, the charges of which amount to
about ^,76,230 per annum; the marine charges, on tliQ
average of 1777-8 to 1789-90, amounted to X-^33'234
annually.

Eighth. It has beenfuggcfl:ed, that a code of military re- Eighth fug-
gulations fhould be dravv^n up for the army in India, and that Codeofmiiu
it Ihould confift, firft, of thofe which are obfervcd by the liousSa-'
Britilh army, and next of fuch additional articles as may '^'■^
have been found necelTary or expedient for the Indian armv.
Under this laft article may be fpecified the line of promotion
and the line of duty in the different fettlemcnts, the mode
of conducing courts-martial in the Sepoy corps where the
natives are parties, particularly in cafes where the native
officers are to be tried either for mutiny or defertion. Tranf-
lations of this part ought to be made into the Perfian
and Native languages, or language beft underffood in each
prefidency, and read by the native officers thcmfelvcs, in

Part II. X x x 2 the

^>6 OF THE BRITISH GOVERNMENT, &c-

CHA?. I. the prefence of the commanding European officer, atftated
times in each year, and at the head of the native regiments *.

Inference
from the
whole of this
military f\ 1-

Having thus fuggefted the kind of government for
our Afiatic pofTcffions which the characters of the inha-
bitants, the agreements and treaties which we have entered
into with the native States or Princes, and the fafety of
the Biitifli conftitution in its connexion with India, feem to
authorize; and having marked out the degree of delegated
fovereignty, with the judicial, financial, and military powers
which it will be ncceflary to authorize, for theadminiftration
of it ; the wifdom of Parliament may adopt, alter, or im-
prove the whole, or any of the parts of this fyflem, as
they may think the maintenance of the Britifh dominions
in Hindooftan, and the improvement of the trade to the
Eart-Indies, fhall require, during the propofed prolongation,
of the Company's term.

* Though there has been ar» eAabllflied pradice in condu(EUng courts-martial ii»
the Sepoy corps, this practice is not generally underllood ; it would be of ijnportange^
therefore, that regulations for fuch courts fliould be explained.

HISTORICAL VIEW

OF PLANS:

FOR THE GOVERNMENT AND TRADE OF

B. R I T I S H I N D I A, &c.

CHAP. IL
SECT. I.

CONTENTS.

Commerce a- difficult and important Branch in a Syjlem of
Indian Affairs ;•— Reference to the Principles upon ivhich the
Syjlem rf JLaJi-Jndia trade mujl rcjl\—'the prejent Syjlem may

Part IU he

J28 OF T H E B R I T I S H G O V £ R N M E N T

be continued, ivith MotVifcations and Improvements fu'tied to
the actual State of our Indian Affairs ',—ILmbarraffments to
he expe&ed from different Claffes of Opponents to the prefetit
Svjlem.— Argument of thofe ivho iiijh tO' become Adventurers
in the Eajl-India I'radt'.— Examination of this Argument, by
an Appeal to the Circumjlances under ivhkh the private Ad-
venturer and the Company ivould carry on the Tirade to India
and China;— by the Kecefitv of bringing home the Revenue
through the 'Trade;— -by the Loffes which the Public would
fujlain, if the Revenue was to be brought home through the I'rade
of the private Merchant.— The Experiment of an open 'Trade
equally dangerous at this Time, as when it was made by
Croimvell. — Embarraffments to be expected from Stock-jobbers
and Party -men. — Thefe removed, by References which have
been made to the actual State of the Compa?iy^s Revenues and
'Trade.— Embarraffments to be expeEled from Speculators in
BritfJj Manufadlures .—Plaufible Reafonings of this Clafs of
Men,— thefe obviated by the Reports of the Direclors ; firfl
on the State of their Exports to India from 1784 to 1790.
—Obfervations upon this Report fuggejled by the atlual State
of the Trade to India. 'The Obje£iions of the Speculator in
the Bntifj Manufa6iures obviated by the Report of the
Directors on their Exports to China from 1784 to 1790.---
Ohfervations upon this Report, orifing from the actual State

AND TRADE IN THE EAST INDIES. ' 529

of the 'trade to C/mia.—T'he Ohje6l\ons of the Speculator hi
our Manuf azures, further obviated by the 'Third Report of
the Directors, on the Export trade to Japan and Perfa.—
Ohfcrvations upon this Report, arifing from the Hifory and
aEiual State of the trade to fapan and Perfa, and to the
Iflands in general.— Ohje&ions to be expe Bed from the Agents and
JLmiJfaries of foreign Companies.— Confequence of lifening to
them \-—thefc Objedlions afford an additional Reafon for conti-
nuing the exclufve hut modified Privileges of the Company. —
the Whole of the Eafi-India trade divifible into Exports,

circuitous Exchajige ivithin the Company'' s Limits, and Im-
ports to Europe, &c. Export Trade. to open through

the Company s chartered Ships, the Export trade to the pri-
vate Merchant and Manufadiurer , on their own Rifk. Cir-
cuitous Trade. 1. the Company to employ their Ships in

carrying Indian Produce to the Countries within their Li7nits.

Cafes in which Country Ships may be employed in this

'trade. 2. to efablifh fuch intermediate Stations of trade

hi the Countries within the Company s Limits, as the trade to

them can afford. Import and Re-exportation Trade.

I . Encouragements to be give^i to the Culture of raw Mate-
■ rials for our Manufa£lures, and of Articles of Confumpt in

China, &c. and in Britain. 2. the Company to furnifh the

Part II. private

5jt5 OF THE BRITISH GOVERNMENT

CHxrAT. private Ma chant 'vo'ith Shipping for byingitrg home raw Ma-
terials in return for his Exports, or to grant him Bill .

5. ^he Duties on imported India and China Produce to be
modified. 4. lU'icit T'rade to the Eafi-Indies, by Britijh Mer-
chants trading wider foreign Flags, to be checked, 5. T'he

Compa/ty's Sales to be further improved. RefuU of the il'hale

of this commercial Syficm.

Commerce, xHE eftabliihment of a commercial fyflcm, more par-
aJiflxuitand fj^yij^j-iy ^^hen it is to make an eflential part of a poll-
bran.-hina i-j^-^i arranccmcii t, is obvioufly a delicate branch of pub-

fyUem c.t In- ^ ,r i i • c i i • •

diau affairs, lie ceconomv- If the regulativon ot trade, where it is
fimple, that is, where one nation fends money and commo-
dities to obtain, in return, the money and commodities of
another, that a profit may be drawn from the whole of the
t^lnfa£lior^, requires political prudence •, how much more
muft this be the cafe with the Britifh trade to the Eaft-
Indies ? Though this trade might have been fimple in its
origin, it has gradually become mixed, and within thefe laft
thirty years, has been the medium through which the
revenues of conquered provinces were to be rendered one
of the refources of the nation, as well as part of the
reward of the Eaft-India Company.

AND TRADE IN THE EAST INDIES.

S5^

CHAP.

II.

trade rauft
reft.

In ftating the principles upon which the Legiflaturc may
probably think, it expedient to prolong the term of the Eaft- Reference to
India Company's cxclufive privileec, we have found, that thcpnnci|.u.s

i- ■' I o ' ' upon which

the trade has been carried on upon a joint flock ; that it has tiieiyftemof

111 • rill rt Eafl-India

required nearly the experience or tAV"o hundred years to eita-
blifli it; that it has needed all the advantages which the
Company poflefs over the private merchant, from their trad-
ing upon a capital, for which, it does not appear, they pay
much, if any intcrefl ; that they have proceeded upon the
fullcfl confidence in their credit among the nations with
whom they traded, and upon experimental knowledge of
their characters and prejudices ; that for many years the
furplus revenues of the provinces hav^e paflfed home through
the medium of their trade, in return for the expenfes of the
various wars in which they have been engaged ; that, in
fine, it has called for the control of the Executive Power
and of Parliament to fupport their credit, and to render the
Britifh intercfts in Afia, whether commercial or political,
efficient branches of the empire and of its refources.

Upon a fair view of this national fubjeft, and under no
impreffions but thofc of fuggefting propofitions for the
general intcrefl: and honor of the Britilh trade and empire,
and propofitions too, arifing out of the chara6l;er of the
natives, our fubje6ts in India, and out of the charadter of
the inhabitants of the countries to which our Afiatic com-
merce extends in connexion with the J experience of
the Eaft-India Company, and of the executive power
controling their proceedings, it fecms to be a necefTary infer-

Part II. Y y y efice,

The prefent
fyftem may
be continued
with modifi-
cations and
improve-
ments, fuited
to the adual
ftate of our
Indian aft
fain.

531

OF THE BRITISH GOVERNMENT

^CHAP. II. ence, tliat the fyftem of trade, as at prefent carried on, with
fuch modifications and regulations as the preceding plan of
govern me nt'and recent events -vvill admit of, is the only one
that is fitted for the mixed commercial intcreftsand territorial
poiTeffions of Great Britain in the Eafl-Indies.

Embarraff-
mentsto be
expecftcd
fromdiflercnt
clalFcs of op-
ponents to the
prefent
fyfiem.

Argument of
thofc who
wifli to be-
come ad-
venturers
in the Eaft-
India trade.

In continuing and improving on the prefent fyftem of
Afiatic commerce, the Public and the Legiflature have to
meet a variety of embarrafTments. Men who \\'\{h to become
adventurers in Eaftern trade ; men who are to draw their
fortimes from flock-jobbing, or to derive confequence from
the views of Indian affairs, which, in conne6bion with poli-
tics, they may obtrude on the Public ; men who may wifh
tofpeculatc in our manufactures, and the emifTaries of foreign
Companies, who have been our rivals, will fuccefTively
attempt to bias the public opinion and judgment. Though.
the Proprietors and Diredors, and the Executive Govern-
ment controling Indian affairs, are fully equal to the talk of
examining and dete£ling the erroneous accounts, which men
of thefe various defcriptions may offer, it becomes a duty to
the Public, to free it from the influence which fpecious pro-
pofitions might have, leaving to the candor and judgment of
Englillimen, unfettered in their decifions, to examine and to
pronounce on the future regulation of fo valuable a branch
of their trade and navigation.

In the firfl place, men who wifli to become advcnturcis
in the trade to India or to China, will fiiy, that monopolies
of every kind are deftrutStive of all commercial enterprize ;

tliat

AND TRADE IN THE EAST INDIES. 533

that however proper fuch monopolies may be in the early chap, ii.^
ftages of a diflant and expenfive trade, as an encouragement
to individuals to fubfcribe to the flock required to carry it
on, they are unnecefTary and impolitic, when the value of
that trade has become generally underflood, and when the
profits from it ought to be laid open to the Public at large :
that the Eaft-India trade has reached this point, and that the
wealth of individual merchants would be profitably employed
to themfelves and to the nation, if they were permitted a
liberal competition in Afiatic commerce. In this way (they
will fay) not only the general export of Britifli produce
would be encouraged, but the import oC the materials upon
which fo many of our home manufa6lures depend, would
become a new fpring to the induftry of the European and
Afiatic fubje6ls of Great Britain. Before we compare the
trade, fuppofing it to be in the hands of the private mer-
chant, or in thofe of the Company, we fliould diflinguifli
between a monopoly, when it fignifies an exclufive title in
its pofleffor to bring into, or to with-hold from the market
any commodity, and the exclufive trade of the Eaft-India
Company, where a body of merchants engage in a concern,
of which any one may become a partaker, by buying a
greater or a lefler fhare in their ftock, and where the fale
of the imports is open and legally authorized, and the trade
fo regulated by the Legiflature as to give to the nation a
fuperiority over foreign and rival Companies. In the hands of
the London Company, the India trade might perhaps be de-
nominated a monopoly, but in thofe of the United Company,
Part II. Y y y 2 it .

534

OF THE BRITISH GOVERNMENT

CHAP. II. it muft be confidercd as the Britifli nation tradine UDon a
large capital to the Eaft-Indies*.

Examination Howevcr fpecious tliefc opinions in commerce may be in
mentby an" their general afpe6ls, it is the application of them alone that
appeal to the c^n determine their value ; and, in the prefent cafe, a few

circiini

CCS undei- Icadm? fafis will be lufficicnt to ijomt out the impradticability
which the - , ^ . , ^ ^ ''

private ad- 01 adopting them.

venturer
and the Com-

c.'rry on"he The trade of the Eaft-India Company differs from that of
*'•']''= '°^,1'^'^ otlipr merchants in the foUowine circumftances : The indi-

flod to China. • , i i - .

vidual merchant, when he employs a fum in any branch of
trade, confiders what interefl he can draw from his money,
independently of the rilk of trade, dedufts this from what
he has realized beyond the prime cofts and charges, and then
fets down the remainder as his profit ; or if the interefl of
his money would have exceeded the fum fo realized, he con-
fiders the difference as a lofs. The Company again may be
faid to trade on a capital partly furnifhed by others, fince,
firfl, all that they pay intereft for is their capital ftock and'
bond debtf? and (confidered in one point of view) the bills
of exchange from India and China : their outflanding debts
to individuals, however, bear no interefl, and the amount
of them is ver)' confiderablc, as well as the profit on

* See this fuhjeft treated of, upon the principles of law and of trade, in a " ShoU
ifjftory of the Eaft-lndia Company." (1793) chap. 6, p. 26.

•J- The loan from the Bank being for the mortgagp of annuities, the interefl is pro-
vided for, cxclufive of the trade.

privaet

AND TRADE IN THE EAST INDIES.

53 i

private trade, that is, the duties paid by the private trader CHAP. il.
to the Company. The Company thus may be faid to trade
fo far on a capital furnifhed by others. Hence the difficulty
under which the individual merchant would engage in the
eompetition with them ; and hence the danger of any attempt
to divert from the Eaft-India Company into any other chan-
nel, a commerce that has proved fo very beneficial to the
intereft of Great Britain.

Another circumftance in which the trade in the hands — Bythene-
of the Company differs from that of the private merchant bringing
18, that they have employed large fums in inveftments, from '!"J,"Jg^'^^ ""
the revenues of India. The private merchant muft fhip a through the
quantity of goods from Great Britain, and, from the fale
of them, purchafe produce in India; and, after paying all
charges, realize a certain amount in Britain. If the amount
realized (hall exceed the intereft of the money employed,
the trade would be profitable on the whole ; but if it
fhould not yield the intereft on the capital, the trade is
a. lofing one. The homeward cargoes of the Company,
again, are furnilhed partly by the revenues in India, partly
by bills drawn on England, and partly by the falc of ex-
ports. The profit or lofs, therefore, with them, becomes
divided into export and import trade; and in the proportion
that the one or the other is burdened with a larger or lefTer
degree of the charges, the profit or lofs is encreafed on
cither. The revenues, however, it muft be remembered, are
to be brought home through trade, and through a trade
immediately under the public control..

Part II. A third

53^6 OF THE BRITISH GOVERNMENT

CHAP. 11. A THIRD circumftance in which the trade of the private

— Bytheiof- merchant and of the Company differs is, that it would be

Tubiicwouid almofl: impraclicable to give the advantage of bringing

furtain, ifthe i-^ofi;^g j-hc rcvenucs through the private trader, fo as to al-

to be brought low him the fame advantages which the Compan}- pofTefs

home - , . ,_, . f, 1

through the m thc circuit of their commerce. The nlks to be run by
J.'.'iTate mer- the Pubhc, in cntrufting portions of the revenue to the
ehant. merchant, who was to depend on the profits of an un-

certain export trade to and import trade from India ; on the
profits of an uncertain trade from India to China, allowing
the profits from China to be certain, would be fo great,
that it might affe6t the national object of realizing the
revenues of India in England. That the meafurc of cn-
trufting the revenue to the Company, to pafs through their
trade to England, has been found, from experience, to be
pradicable and produ6live, and therefore, the only one
which the Public can rely on. If the exports have not
always brought a profit, ftill the weight of the revenue
has enabled the Company to continue the import trade with
advantage to themiblvcs ; and even granting that the exports
from India to China have not always contributed equally
to the China invcftments, ftill, judging from the number
of country fliips under the Company's prote6tion, employed
bctu een India and China,* as well as ot the Company's char-
tered

* The articles chiefly fent from India to China arc obtained on the Malabar Coaft,
Tiz. pepper, fandal wood, 8cc. Formerly the Company not only had competitors in
obtaining them, in the European companies, but thc prejudice! of thc Myfore
government againil thc Englifli to ftruggle with. Our recent conqueft of this coun-

4 try

AND TRADE IN THE EAST INDIES.

537

wclL

tered fhips, the conne6i:ion of the two trades mufl: be continu- CHAP. ii.
ed, and the revenue t>f India be more certainly reahzed in ' '

England through the circuitous commerce of the Company,
than if this circuit fhould be opened to the private mer-
chant.

But fuppofing thefcfadls and the reafonings from them Theexperi-
not to be conclufive, againft the fpecious reafoning of the opTn trad"
private adventurer wilhins; to deprive the Companv of ^'i"^".^' '•^":

•■^ . - . . . ^ ■' geroiisatthis

their excluliv^e privilege, the hiftory of our Eaft-India trade time, aswhea

r • n r -1 ^ 11^/11 't "'•''5 made

Turnifhes an argument or more weight. Cromwell, itruck bvCrom-
with the reafonings againft monoplies, laid open the Eaft-
India trade. In three years, its decreafe, and the dimuni-
tion of the home revenue fatisfied him, that though the ar-
guments againft monopolies were fpecious, the Icheme of
an open trade to the Eaft-Indies was not practicable ; and
that it was expedient to reftore their privileges to the Eaft-
India Company. He faw, with mortification, the fudden en-
creafe in the Eaft-India trade of the Dutch Company : he
was alarmed leaft his rafti and imperious fcheme might
abridge the revenues of the nation, and though there then
exifted no revenues to be brought home through the trade,
this circumftance now exifting, is fufficient to check us in
the experiment of opening the trade, fmce the refult might

try will, of Gourfc, facilitate this br.-inch of nhe trads, and by placing it under the
Company's management, enable the executive power and parliament, to afcertain th»
value of the acquifitlon, and improve the trade for the intcrcfl of the Public.

Part II. be

538

OF THE BRITISH GOVERNMENT

CHAP. II. be more dangerous in the end]of the eighteenth, than it was
in the end of the feventeenth century.*

Embaiian"-
nents to be

from llock
jobbers and
party-men.

In the fecond place, the opinion of the Pubhc, as well
as the dehbcrations of the Legiflature, have to meet em-
barralTmcnts from Stock-jobbers and party men. The ob-
je6l of the one clafs will be to profit from the fluctuations
in the price of India flock, &c. — that of the other, to ac-
quire political influence, in confequence of their furnilhing,
from time to time, fpecious views of Indian affairs to the
Public.

Thefe re-
moved by re-
ferences

which have
been made to
the aftiial
Hate of the
Company's
revenaei and
trade.

It would be impracticable, and indeed ufelcfs, to follo\r
either of thefe clafles through the intricacy of their ftate-
ments, or to examine the motives from which they may
have written ; it will be lufficient to point out the general
obje6ls with which they did write. Thefe obje6ts were
to bring out flatements of Indian accounts, different from
thofe which the records of the Company furnifli ; or to infti-
tute a train of arguments to prove, that the particular plan
they recommended, would be better than the prefent fyftem.
The Pubhc, however, always derive profit from fuch con*

* " When Cromwell's plan of laying open the trade to the Eaft-lndies was know a
in Holland, a general alarm prevailed that this mcalurc would ruin their Eafl-India
Company.— Thurloe's State Papers, vol. 3, p. 80." Hift. and Chron. Ded. of th«
Origin of Commerce, vol.2, p. 431. This meafure of the Protcftor took place in
1654-5, and it was propofcd the experiment fliould be made for four years, but in
three years time, he was obliged to reeftablifli tlic Company with all its former
privileges. Ibid.

» troverfies,

AND TRADE IN THE EAST INDIES. S59

troverfies, though they cannot reft upon any information, CHAP. ir.

with confidence, but upon that of authorized accounts and

their vouchers. A man who wilhes to miflead the Pubhc,

on any queftion, will reafon ingenioufly from a few or

from prefumed fa6ls. He, who is in pofTcffion of the real

fads, will leave them, without reafonings, to have their

efFe6t on the good fenfe and judgment of the nation.*

In the third place, the opinion of the Public, as well as Embarrad-

. . . . merits to be

the deliberations of the Legiflature, will have to meet em- expected
barraffments from fpeculators in our manufactures, who tLrriifcr!-*
will hold out the plaufible arguments, that if the trade to |i[l'„""""''"'"
the Eaft-Indies fhould be laid open, the demands for the
exports of Britifh produce would be encrcafed, and the
import of raw materials become fo great, as to give a new
fpring to the Britilh induftry; and that the manufacturer
would, with fuch advantages, be enabled to work at a
cheaper rate, and, of courfe, to fell at a lower price.

In all cafes where the fafts lie removed from common piaufibierea-
obfervation, nothing is fo eafy as to offer a fpecious opi- [hh'dafsof.
nion, and nothing fo common as to be duped by it. This n^^"*
is remarkably the cafe in the prefent inftance. It is to
be recoUeded, that the Britifli exports, in fo far as they
regard the Eaft-Indies, may be divided into two kinds :

* See this obfervation iUuftrated in the anfwer tx) ftatemenfs of this deftription,
given in " A General View ot the Variations which have bet:n made in the Aftairs
of the Eaft-InJia Company fince the Conclufion of the War, 1784." by George An^
deifon, A. M.

Part 1L Z z z Such

5^ OF THE BRITISH GOVERNMENT

Cl^^T. ir. Such as are manufactured from materials furnillied iii
BiitJiin, as hardware, woollens, &c. and fuch as arc ma-
nufa^urcd fioin materials chiefly brought from the Eaft-
Indlcs, as from cotton and raw-filk. Having derived great
profit from the demand;; of the Eafl-India Company for
hardware, &c. the manufac^lurer concludes from his
pafl gains alone, and overlooks the injury he might fuftain
if the demand on his ingenuity and induftry fliould b«
leflcned. In this ftage of his felf-deception, he looks for-
ward to the profits he might reap if this demand could
be encrcafed. He thinks, judging from his pall profits,
that if the materials which are brought from the Eaft-Indies
could be obtained at a lower price, then he could exercife
his Ikill and induftry with a double profit to himfelf ; for
he ftill could keep up the former price of his mauufadured
produce, and thus accumulate wealth, with the fame fa-
■cilit}', that he can imagine the enjoyment of it. If, on the
one hand, it would be improper in the executive go-
vernment, in a commercial country, to overlook or to
check thefe expectations ; on the other hand, it would be
a breach of duty not to prevent the ruinous indulgence of
them. On a reference, accordingly, from the Committee
of Privy Council for trade and plantations, to the Court of
Directors for inforjnation on the fubject of their export
trade, three diftindt reports were prepared, the fubftance
of which, better than any reafoning, will meet and put
down the plaufible fchemes of fpeculators.

Thk

AND TRADE IN THE EAST INDIES. 541

The Court of Directors of the Eaft-India Company, flated ^hap. 11.^

in their firft report, what were the quan'-ities and value in Thcie obvia-
ted by the
England, of the feveral articles exported by the Company reports ot the

to India, and the profit or lofs on the fale of thofe articles fi,'ft^ oTt'hT

in that country ; and the refult is, that in fix years, from ^f^^°^ ''^'"^

1 783-4 to 1 789-90, there have been fold in India, woolLns to i'";''^- f'"°'*^-

the amount of ;(r.576,048 the firft cod of which in England 1790.

was jr.520,120 ; and metals fold in the fame period to the ^

amount of ^(".1,010, 008, the firft coft of which was^

jC.760,169 ; to the firft coft the committee add ; per cent.

for charges in England ; intereft of money two years, at

^.4 per cent, per annum ; infurance 3 per cent, fre'ght '

jT.io per ton; charges of the import warehou'es in India,,

3 per cent., at Bengal, 5 per cent, at Madras, and 2 per

cent, at Bombay. By thcfe different charges a lofs appears

on woollens, in the fix years, of jC-37'79°' '^^^ ^^^ S'^^^ "^^
metals, only :^'95875, making an average lofs, on the
whole, of -^.4,653 per annum. It is to be remarked,, how-
ever, that the current rupee is here valued at 2Sw at which
bills have been lately drawn from Bengal ; but in the firft
three years of the above period, the bills were at 2s. id.
if that rate were taken there would be a profit inftead of a..
lofs.

In the fecond place, they have given fuch information^
as they could procure refpedling the exports in private
trade, allowed to the commanders and officers of the Com-
pany's fhips, and the particular articles which compofe
that export ; and the refult is, that, on the average of the
laft fevcn years, thcfe exports have amounted to ;^. 126,687

Part II. Z s z z per

5V-

OF THEBRITISH GOVERNMENT

CHAP. n. per annum; befides, probably, a large amount of naval
and military ftores.

In the third place, they have given as much information
as they could procure refpecting illicit trade; that is, goods
exported on the Company's fliips ^vithout ibeir orders, and
on private {hips without the licenfe of the Company. But
of the annual amount, they had no materials to enable
them to form an eftimate ; a confiderable part of it con-
fided of naval and military ftores.

In the fourth place, they have fuggefted the befl means
they could devife of computing the tonnage unoccupied in
the Company's fhips on their outward voyages ; and the
refult is, that upon the average of feven years (1784 to 1790)
the tons carried were 16,068, and the tons chartered 19,800
fo that the tons chartered exceeded the tons carried 3,732
tons annually.

In the fifth place, they have given an account of their own
endeavours to encrcafc and extend the confumption of Britifh
manufactures in the Eaft-Indies, and fuggefted fuch new-
exports as might be tried, with the probable degree of their
fuccefs, and the refult is, that the demand for Britilh manu-
factures is fo limited in India, that almofl: every attempt to
extend the fale of them has failed of fuccefs, from the mar-
kets becoming overftocked ; and that but little encreafe of
demand can be cxpe6ted from our intercourfe with the native
powers*.

^ * See Firft Report.

Admitting

AND TRADE IN THE EAST INDIES.

545

Admitting this report of the Dire6lors to be the (late of CHAP. ir.
the cafe, and they certainly have the information which Obfcrvadoni
arifes from pra6lice and experience, the attempts of the port" fuggef-
private fpeculator in our manufactures, might produce the luti^ftateV/'
pubhc evil of diminifhing the quantity of exports at prefcnt the trade to
fending out by the Company.

In the firft place, it is to be recollefled, that the Com-
pany, from the tonnage required for their import trade,
have every inducemeht to export Britilli produce in their
chartered (hips, even if the fales fliould be attended only
with no lofs. They have a chara6ter underftood in India
and relied on by the natives to fupport ; they have the ex-
ports of other European Companies or illicit Englilli traders
from Oftend, &c. to check, and, if poffible, to abridge.
It is their intereft, in one word, to keep the export as well
as the import trade in their own hands. The private adven-
turer is under none of thefe obligations, at leafl:, he is not
under them in the fame degree with the Company. He can-
not be prefumed to have a chara6ler and a credit already
eftabliflied among the natives. As his object can only be
that of rapidly amafiing a fortune, he might take out Britilh.
produce of an inferior quality, on the idea that the efta-
bliflied reputation of it in India, would enfure him a fale ;
the preference given to our manufadlures over the other
European produce, might thus be lefTened. The prefent
demands for it by the agents of foreign Companies to enable
them to meet our fale in the Indian markets, might thus be
done away ; manufadtures might rife among the European

♦ nations,

5^4.

OF THE BRITISH GOVERNMENT

CHAP. II. nations, which might fuinifli produce equal at lead to the
kind fent out by the private adventurers. Time and prac-
tice, and profit, might eftablilh manufactures on the Con-
tinent, to rival thofe of Britain. If the manufaiSlures of
England arofs from one accident, they might fall by
another ; nor is it an improbable event, that after the prc-
fent delirium among the French fhall fubfide, and that
•country be again under a regular government of any kind,
they may, as on former occafions, attempt to allure our
artizans and manufatftur.ers to fettle among tlicm, and thus
Great Britain, duped by an idle fpeculation, might lofe that
fuperiority in its produ6lions, which it has coft ages to
acquire, and which we now fo profitably poflefs. The poli-
tical imprudence then of liflening to fpeculation might de-
prive us in pradicc of an ad^•antage we could never recal.

If then, on the one hand, we muft paufc and ferioufly
refledl before we take the export trade from the Company,
we fhould not, on the other, fuppofe that it is not in their
hands fufceptible of improvernent. If, notwithflanding the
refult of the preceding report of the Dire6tors, the
merchants, or rather the manufadlurers of this country,
fhould flill be under the delufion of its being for their advan-
tage, that the export trade fhould be laid open, and yet the
Legiflafurc be ftill of opinion, from the evidence before
them, that no intelligent merchant would embark deeply in
it upon his own capital, and that it would be unfafe for the
Public to divert this trade from a channel in which it has
proved lo beneficial to the manufacturer j it does not thence

, follow

A N D T R A D E I N T H E E A S T I N D r E S. 545

follow that fomc means may not be adopted for allcJwing the CH.\r. 11.
merchant, at his own rifk, to try the experiment, and yet
preferving and invigorating the trade of the Company. The
pnrpofes to be accomplifiicd arc to encourage the export
trade of our manufaflure to India to the utmofl: extent the
demands of that country will admit of, and to cncourarc
the importation of the raw materials, which the foil and
climate of India afford for our manufafiures. An experi-
ment, therefore, may be made without any danger to the
Public, by obliging the Eafl-India Company to find fiiij.^-
ping, at a rcafonable rate of freight, for carrying out, at the
rifk of the exporter, the manufactures of Great Britain and
Ireland, fuch exporters giving notice, within a time fpeci-
fied, of the tonnage they require. In like manner, that the
manufacturer may have every encouragemerit to cbhge the
Company to find {hipping in India, at a reafonable rate of
freight, for importing the raw materials he can purchafe,
and, at his own rilk, in return for the manufa^lurcs he has
exported. If this meafure (hall be analized, it will be found
liable to no obje6lion, either by the Company or by the
manufa6lurer. If it be true that the former export as much
of the manufadures of Britain and Ireland as the demands of
India require, the individual exporters can have no tempta-
tion to enter into the competition with them ; and if it be
not true, the individual exporter will have an opportunity
of filling up the chafm in the trade now carried on in foreign
bottoms, and an opportunity alfo of bringing home fuch
quantity of raw materials for his manufaflurc as the fale of
his exports can purchafe ; befides he will have the advan-
Part II. tage

rj'j OF THE BRITISH GOVERNMENT

CHAP. ii. tage of fliipping, at a moderate freight, without, upon his
individual capital, being obliged to purchafe and fupport that
hazardous and expenfivc part of the concern. The Com-
pany will have the export trade left in their hands as well as
the import of materials for the manufactures, and will be
compelled to carry on both to the utmoft: extent, that the
dem.ands of India cr the demands of Europe will bear. A
dangerous fpcculation will thus be checked, which, if
allowed to be carried into praclice, might deftroy the intrinfic
value of the Bri'.ilh produce, upon ^^hich the preference
given to the Company in the Eaftern market obvioufly de-
pends ; and yet the great objedl in commercial ceconomy
will be gained, of extending the trade and navigation of
Great Britain to the Eaft-Indies to the utmofl point to
W'hich it can be carried with fafety to the refources and reve-
nue of the nation.

On a minute examination then of the particulars referred
to, in the report of the Directors on the export trade, the
advantages to be derived from it may be traced out in the
following fimple ftage of the bufinefs. Firft, a fum of
money is employed to purchafe woollens (for example) in
England, as an article of export for India ; to this fum muft
be added, the charges of freight, &c. Second, thefe woollens,
when fold in the India market, will produce a greater or a
lefs fum, according to the market price. Third, this fum
fo produced is laid out in purchafing Indian goods for the
China or Europe markets. In this ftage of the bufinefs, it
15 to be recolle6ted, that the rupee may be taken cither as

bullior^

AND TRADE IN THEEAST INDIES.

547

bullion, when it becomes an article of export for China or chap. ir.
for Europe, or it may be valued according to the rate of
exchange, between India and China, or between India,
China and Europe. Fourth, the fum which can be ob-
tained for the woollens in the India market, applied to
purchafe goods to be fold in China, or exchanged for China
produce to be fent to Europe, mud be eftimated by the
profit which either India or China produce will yield at the
Company's fales in Europe. In a commercial view then,
the original fum laid out on woollens pafles through a long
circuit of exchange, in each flage of which, we have to
confider the profit or lofs on it, and not to bring the ad-
vantages or difadvantages of the export trade, in the man-
ner of the report, under any one of tliem in particular. We
mud deduct them from the whole, viz. from the exports fil-
ling up the Company's tonnage from Europe to India ; from
the fum arifing from the fale of the woollens in the India
market; from the difference of the value of filver in Europe,
in India and in China ; and laflly, from the profits which
the Company draw, in the whole of this line of exchange,
in connexion with the privilege of fending home the fur-
plus revenues, and of being able to obtain money from
individuals in India and in China for bills, at one or more
year's fight, without intereft ; that is, from their obtaining
money v.diich is to pafs through their trade, without any
other rifk, till it can be realized at their fales in England,
but that of being their own infurcrs.

Part II. 4 A The

548 OF THE BRITISH GOVERNMENT

CHAP. II. The Dire6lois in a fecond report, dated the 29th De-
Thciiyc- cember, 1791, after recapitulating the lubftance of the firft

lions lit ilic ,- r 1 (■ 1 • .

fpccuhtor report, propole to connne thcmielves to a particular ac-
maauSJs ^ount of the trade with China. On this fubjecl they fet
next obviated out with givinc; a view of the quantity and value of the Com-

by the report do i. j ^

of the Dircc- pany's cxports to that country, and of the profit and lol's on
export* to*^ this ccncem. To render this fubject obvious, they point
J^i'+'jo*'"'" ^"^ ^^^"^ particulars of the Company's exports to China, au-
»79=' thcnticated by the proper officers, and illuflrate this by the

rate of exchange, eftimated at 6s. 8d. per tale, and then
ftate, that the lofs on woollens from 1781 to 1791 inclufive,
amounted to jr.82,516, and on metals, during the fame
period, to £. 108,401. They next proceed to give an ac-
count of the private trade, allowed to commanders and
officers ; and, after obfening, that the Court of Diredlors
had, for the year 1791-2, extended the privilege of com- '
manders and officers, in private trade, from 87 to 92 tons
per fhip, and diflinguilTiing what articles of exports in pri-
vate trade, or what proportion of them was to be fent to
China, notice, that thefe officers have confined themfelves
chiefly to the trade in Ikins and furs, having fince the Ame-
ricans begun to trade to the Eaft-Indies, dropped the ar-
ticle of ginfeng, and conclude, that the only other articles
of export confift of jewelry, toys, watches, cuttings of
cloth, a very few woollens, fome cutlery, hardware, and
filver; the article of quickfilver having for fome time been
abandoned.

^ TlIEY

AND TRADE IN THE EAST INDIES. 549

They proceed, in the third place, to report refpe<5ljng chap. ii.
illicit trade, and obferxe, that thofe articles of it which
form the chief demand in India, viz. naval and military
ftores, and copper, do not anfwer for the China market.
That it is with difficulty the Company's Ihips are allowed
to keep the neceflary guns and ftores on board, and that
the Chinefe are fupplied a\ ith copper from Japan.

They mention, in the fourth place, the fubjeft of
tonnage, and refer to their firft report.

They proceed, in the fifth place, to report on their endea-
vours to encreaie and extend the confumption of Britifh
manufaclures and produce in China, and mention the
refult of their attempts to add new articles to this trade.
On this fubjecl they obferve, that though almoft all the
European commercial nations have had intercourfe with
this empire, either by fea or land, yet ftill we are ignorant
of its internal commerce ; that the merchant can derive no
affiftance from the publications of miflionaries and others ;
and that all experiments of trade, proceeding upon them,
have been injurious to the Company's commerce. What-
ever credit may be given to the juftice of the public edidls
of the Chinefe, and whatever rel'pedl maybe due to the good
character of the prefent Emperor, that ftill there remains
to be difcovered, in what manner a free communication
with his empire is to be obtained ; or in what way his or-
ders for redrefs of grievances in trade can be enfured.
Though the Company, they fubjoin, upon a complaint of

Part II. 4 A 2 an

530 OF THE BRITISH GOVERNMENT

CHAP. II. an a6t of injuflice on the part of the Chinefe, obtained an order
for redrefs, and though a command was given to difplace the
Mandarin who had committed the violence, the pecuniary im-
pofitions on the commerce were made equal tothe reftitution
which was ordered ; nor do their fervants abroad find that the
other European nations are in a better fituation than the Eng-
lifh. The obftaclcs to trade arife from tl:ie arbitrary nature
of the Chinefe government : it confines the European trade to
Canton, though tea is produced to the northward of that
place. The principal conlumption of furs and woollens, evi-
dently is in the capital of China ; they could be purchafcd at
a much cheaper rate if our Ihips were permitted to proceed
to a pt<rt in the north of China, from which,. however, they
are excluded by the jealoufy and fufpicion of the govern-
ment. It thus becomes impofiiblc, they conclude, to dif-
cover the fituation and defcription of people in China, who
either do, or would be likely to confume Britifli produce and
manufa6ture ; woollens and furs would evidently be confumcd
in the northern parts ; tin, for fuperftitious purpofcs,
Avould beconfumed everywhere ; jewelry, toys, watches, &c.
would be bought by the affluent of every defcription.
The report, therefore, concludes, that the only mode of
encreafing and extending the confumption of Rritilh pro-
duce in China, mull be by the ufual and frequented chan-
nels of trade now open ; and that any endeavour to proceed
by new channels would be produ£live of bad con'equences.
The committee illuflratc this obfervation by remarking,
that the principal article from which profit could be ex-
pedted would be woollens, and yet fcruple not to pro-
nounce,

AND TRADE IN THE EAST INDIES. 551

nounce, that the mofl: beneficial method of carrying on the chap, ii.
trade with China from Europe is, by the export of bulhon ;
explaining this opinion by the profits obtained by the Swe-
dilh Company, anterior to the Commutation A6t, which
had the efFe6t to transfer thefe profits to Britain. Means,
howe^'er, they fubjoin, have not been left untried to encreafe
the export trade to China. It has been repreiented to that
people, that Great Britain could not continue to receive teas
to fuch an immenfe value, unlefs the Chinefe would facilitate
and encourage the fale of our produce and manufadfures in
return ; and that the commercial profits to the Chinefe
would attach equally to the import and export trade. The
confequence has been an encreafe of the demand for wool-
lens, and yet the lofs to the Company, as appears from
authenticated accounts, has been continued. With the
obje6l of illuftrating this facl, the report flates the quan-
tities of manufa6ture and produce remaining on hand, at
the clofe of the feafon ; and in what manner the indents
received from China have been complied with. They
argue nothing from the years 1781 to 1784 inclufivc, but
ftate, that fince 1784 the warehoufes of the Company have
been conftantly cleared, and when the balance of cafh in
the treafury at Canton, at the clofe of a feafon, has amounted
to jT. 500,000, there has not been a fingle piece of woollen re-
maining in the warehoufe. The account of tin, lead, and
woollens, indented for, and exported to China, from 1785
101791 inclufive, affords the following refult : tin indented,
tons 1 187; exported 3238. Lead exported, tons 10,200^
Cloth indented, cloths 28.987; exported 33,483. Long
Part II. cUs

5ja OF THE BRITISH GOVERNMENT

CHAP. IL ells indented, pieces 660,200 ; exported 724,380. Camblets
indented, pieces 4840 ; exported 6609. The report con-
cludes this account with a comparifon of the Company's
export trade in the laft century (from 1652 to 1674) Avith
the amount of it, from feafon 1781 to leaion 1791 inclufive.
During the former period they exported, in bullion,
j(".i,i3i,653 ; in produce and manufa6lures to the amount
of jr.286,584. In the years 1655 and 1656, when the trade
was laid open by Cromwell, the Company made no ex-
ports. During the latter period, the amount of exports to
India, China, &c. has been as follows : the total of mer-
chandize to India was _^.i,i79,342 ; metals, £-i,s^^'^4-^ i
ftores, £'i^-55i-S9- The total of merchandize to China
was ;/r.2, 842,904; metals, £-S3h^^T^ ftores, jr.52,782 ;
bullion, jr.4,352,021. To explain thefe exports they ob-
ferve, firft, that the quantity of filver fent will de-
pend on the encreafcd export of other metals, and of ma-
nufa6lures ; and next, that any redudtion of the Com-
pany's export trade to China would be an irrecoverable lofs
to the Public.

obfervations In Order to form an opinion of this report, either from

port\nfi'ng the cvidence upon which it refts, or from fuch evidence as

luTftMcof* thofe who have been converfant in the China trade have

the trade to afforded, fmce the report was drawn up, we muft recur

China.j ^ 1 • 1 • 1 1 T

to the commercial principle upon which, it has been lnewn»
the China trade muft reft, viz. that it requires a large ilock
to engage in it ; that long experience of the character of
the Cliincfe, and of the competitions with the other Eu-
ropean

AND TRADE IN THE EAST INDIES.- 553

ropean companies in that trade, is demanded to engage in CHAP. 11.^
it with profit; and, that the relation which tlie India trade
and revenues, and the China trade bear to each other muft
be preferved, to fupport and render the one produdive,
or to give a decided fuperiority in the other. Conne6ling
this principle with the fubftance of the report, we muft
diftinguifli the nature of the two trades. In the India trade
we have revenue and political influence ; in tlie China
trade we have neither the one nor the other. In confider-
ing this report, therefore, we muft diftinguilli the China the
trade firft, as a fimple export and import bufincfs with
fadlory at Canton; next, as an enlarged export and import
bufincfs with China, iTiould the obje6t of the prefent embafly
of opening a trade mto the interior of that empire be effeded ;
and, lafi^ly, in the relation which the India trade has born,
or may, from our late acquificions, bear to that of China,
whether by fending to it thofe Indian articles which hi-
therto have been imported into Canton alone by the Eu-
ropeans in general, or as related to it by the encrcafcd fur-
plus which inay be expeded to arife from the new fyftem
of finance introduced in our former, and propofed to be in-
troduced into our recently acquired dominions.

On the firft of thefe fubjecSls, it appears by this report^
that the Company have exported BritiHi produce, to China,
fully equal to the demand in that m.arket. The demand for
furs from America or from Nootka Sound, muft be confi-
dered as foreign exports, not Britifii. In this view of the
fubjedl, then, we have only to compare the fituation of the

Part II. • private

554

OF THE BRITISH GOVERNMENT

CHAP. II.

private merchant and of the Company, entering into a fair
competition of trade. Tlie private merchant employs a fum
to purchafe exports, as hardware, woollens, tin, &c. for the
China market. To the intereft on this fum muft be added,
that on the charges of freight, infurance, &c. he muft
carry this cargo to Canton, fmcc the Chinefe, as yet, admit
the Europeans into no other port : here it muft be fold for
fuch prices as the Chinefe, bargaining with the other Euro-
pean traders, "will be difpofed to give. If the report of the
Dire6tors fhould be taken as the criterion, there would fre-
quently be a lofs on this fale, though fometimes a cop.fider-
able gain ; that is, fometimes the profit on feveral voyages
would not be confiderable. The Company, in this branch
of the competition, would ha^'e every advantage. In the
fhips which go dire6l for China, the exports fill up part of
the fpare tonnage ; that is, they carry out Britifh produce
without any other charge, except the intereft of the money.
From their large ftock, they can fell it at a lofs, fince their
profits depend on their imports, not on their exports, and
fince they pay no infurance. Jn this firft ftage of the bufi-
nefsthen, the private merchant would be ruined by the com-
petition, and the Company's exports would ncccflarily be
leflened. It is here to be recollected, that it is not in the
exports the Company have rivals from Holland, Sweden
and Denmark, but in the imports, for which thefe nations
chiefly carry out bullion. Suppofing, however, that the
export trade, in the hands of the private merchant, would
aff^()rd him a profit, after paying infurance and charges of
every kind, it comes next to be afked, what fccurity would
5 the

AND TRADE IN THE EAST INDIES.

55:

the Public have, that the China goods would be imported CHAP. ir.
into Britain (and upon this depends the duties and cuftoms) ' " '
if the trade fhould be entrufted to the private mer-
chant? In this cafe the private merchant could not be tied
down by a clearance from Canton ; for, as yet, we have no
fuch privilege. But fuppofmg that he could be bound to
clear out from that port to Britain, and even that the obli-
gation of an oath cowld be added, experience has not
proved, that confcience is always a match for fclf-intcrcff.
He might become a fmuggler if he could reach the Britifli
dominions without being vifited by the revenue officers ; or
if this could be rendered impra6licable, he might carry the
China produce to foreign markets, and thus, not only evade
the payment of the duties on it, but, on a Britilh capital,
enrich a rival European nation. Suppofing, however, that
he had the probity of a good and adlive citizen, it would be
unpardonable rafhnefs to open the trade to China to him, as
a private merchant could not carry on this trade with the
fame profit to himfelf, or with the fame advantage to the
revenue, that the Company have done, if we judge from
their own report, even fuppofmg them to have had no aids
from the relation fubfifling between Indian revenues and
trade, and the trade to China.

Tim fecond afpe6l of the export and import trade to
China proceeds upon the idea, that the embally, for enlarg-
ing the commercial intercourfe with the Chinefe empire,
fliould fucceed. Admitting the probability of this event,
it would be a rafh meafurc to \ary froai. the prefent

Part II. a B line

556 OF THE BRITISH GOVERNMENT

CHAP. II. line of conducting the China trade upon a probability
only, more particularly when the fa6l is adverted to,
that fince the pafling of the Commutation A6t, the Britilli
imports from China have been doubled, while the trade
of the foreign Companies from Canton has been gra-
dually on the decrcafc *. Any innovation therefore, on the
prefcnt fyftem, might leflen the opinion which the Chinefe
entertain of the Englifh credit and demands for China pro-
duce ; and, upon the prefumption that the embafly lliall
fuccced in all its obje6ts, a fmgle irregularity in condu(5t,
or in payment by an individual adventurer, might not only
deprive us of the preference vve at prefent polTefs, but induce
the fovereign to retra£t the privileges he may grant, before
the Company could have an opportunity of proving the
reciprocal advantages of a commercial intercourfe between
the Chinefe and the Britilh nations t-

The

* The Danifli Company have only been able to fend in this fcaibn 179 1-2, a fingle
fliip to Canton.

•j- The confidence which the Chinefe have in the Company, cannot be more flrong.
ly proved, than by their having been in the cuflom of accepting of the ftainps, or
marks which the Company put upon their different exports, as evidence of the fmenefs
and value of the goods, while they examine thofe of every other nation. This confi«
dence is the more extraordinary, when it is adverted to, that the Chinefe, when they
deliver their goods to the Faftory at Canton, fubmit to have them examined. This
circumftance arifes not from a high fenfe of their oun probity and fair dealing, and
can only be explained by their confcioufncfs of a propenfity to commit frauds, and by
the frequent deteftion and difcovery of them. It was not uncommon with their
merchants to cover the furface of a cheft of tea with the fineil kind, while the lower
part was filled, either with coarfe tea or with rubbifli. The woollens, camblcts, &c.
having the Company's marks upon them, they accept of,, without examining the bales.

Tia

ANDTRADEINTHEEASTINDIES. 557

The laft afpecSt in which we can view tlie report of the p^^'^'^- ";
Dire6lors, takes in the relation which the whole circle of
Eaft-India trade bears to China. ' It is not the export of
Britifh produce, or of Bullion only, merely to fill up the
fpare tonnage of the {hips that go dire<£l from Britain to
China, which fupports the trade; nor is it the imports from
China (profitable as they have been) that give us a fair view
of the fubje6t, we muft confider Canton as the center, in
which a great part of the exchanges meet. If the fur-
plus revenues cannot always come through the Indian im-
ports ; if portions of them muft frequently pafs through
the cargoes of country fliips trading from India to China ;
if the different prefidencies muft often give bills on the trea-
fury at Canton, to enable it to provide the China in veft-
mcnt ; if individuals, in India, whether Company's fervants
or other Europeans, frequently advance money for bills on
Canton, that, in this way, the money may pafs through the
China trade to Europe, bearing no intereft during the time
that this refpondentia looking bufinefs is going on, till it

Tin irv pigs, though a recent export, they accept of without weighing, if they have
the Company's ftamp on them, a proof that the confidence is habitual. Metals,
brought by individuals, arc always weighed. The fame confidence which is given
to the quality of the Britifli exports is not experienced by the Faftories of the other
European companies. The Company exported in 1791, 930 tons of tin, which, by
the advices received in November laft, fold for 16 tales per pecul. The exporters
of the Cornwall tin, thus, hare profited from this confidence which the Chinefe have
in the Company, whether we judge from the quantity, or from the facility with w hich
the article is fold. If the trade was open to the private adventurer, the rifle would
be great, and the market might be fliut againft the Englifli. This intcrcfting circum-
ftance can be beft verified by the fupra-cargoes lately returned from China.

Part II. 4 B 2 may

558

OF THE BRITISH GOVERNMENT

CHAi'. II. may be fuppofcd to place the value in the Company's trca-
' ' fury in Leadenhall-ftrect ; it follows from the whole of the

tianfaclions, that we cannot eftimate the profits or lolTcs on f

the China trade, by the mere exports and imports between 'tj

Britain and China; that is, we cannot from them judge of
the value of the China branch of the Company's trade, but
mult obfcrvc the difterent ftreams which feed it, nourifh.
ing equally, as they ran along, the export and import trade
of India, the export and import trade of China, and carry-
ing with them the public concern of bringing home the fur-
plus revenues of our dominions. As our new dominions on
the Malabar Coaft produce the pepper, fandal wood, &c.
fo niuch in demand in the China market, the furplus re-
venue from thence mufl: be encreafed in value, by fending it
through the trade to China ; that is the commercial connexion
between Lidia and China mult become ftronger by this link
between it and India. Hence the neceflity of allowing the
China trade to remain under the exclufive privilege of the
Company.

As with India, however, fo with China, all the advantages
of an open trade may be given to the individual merchant
upon his own riik, and yet none of the difadvantages either
to the Company's credit, or to the home I'evenue be incurred.
The Company may be obliged to furnilli fuch individual
merchants o: manufacturers, as chufc to rilTc their capitals
in the export trade to China, or in the import of the raw
materials from it, required for our home induftry, with Ihip-
ping, at a moderate rate of freight: by this expedient the ad-
venturer will find a more profitable and certain opportunity
6 of

ND TRADE IN THEEAST INDIES. 559

of proving, whether his fpeculations were good or not, than Cha p. I!.^

he could have obtained, if he had embarked in- it under all

the charges incident to a diftant navigation; and, at the

fame time, the Company be compelled to the commercial

jpxertjon of encreafmg the exports and imports to the n*^mofl.

In this way the Public will be enabled to fulfil whatcvej-

promifes may be made to the Chinefe, Ihould they allow us

a trade to the interior of their empire, and in this way enfure

not only the fuperiority which we hold in this market, but

the duties and cuftoms which the nation receives, or may

receive from the China trade.

The Diredors, in a third report to the Committee of the The otyec-
Privy Council appointed for all matters relating to trade fpccuiatorin
and to foreign plantations, ftate the meafures which have o'-"'i^-]."u'="^-

01: ' tures, riu'tnei"

been, at ditierent times, adopted by the Company, for ex- obviated by

. ^ . . the third le-

tending the trade or Great Britam to Japan and to Perfia. port of the
This report had been called for, becaufe the Committee had the export""*
been iblicited to open new channels of export trade to the f"^''=toJ^-

i i pan aad I'er'.

countries fituated eaftvvard of the Cape of Good Hope, par- ''■'•
ticularly to Japan, and to the lliorcs of the Pcrfian Gulf.
To prove that the Company had not been deficient in their
efforts to extend the export trade to all the countries
with'n their limits, the Diredors introduce their report with
a reference to the encouragement which they have given to
men of cftabliihed reputation for their publications on Indian
hiilory, geography and navigation to the expenfive efta-
blilhment of botanical gardens in Calcutta, Madras and
Part II. Saiat

360

OF THE BRITISH GOVERNMENT

CHAP. II. Saint Helena; to the means they have employed for Im-
proving the culture of filk, indigo, and fugar ; to the
prote(5lion they ha\'e afforded a public fociety inftituted
with the objedl of cncreafmg the knowledge of Indian lite-
rature, arts, manula6tures and commerce ; fubjoining,that
no place to the eaftward of the Cape of Good Hope, hi-
therto difcovered, and where, it was prefumed, commerce
might be practicable, had been left untried by their fervants ;
but that it was impoflible to make new and expenfive efta-
blifhments, unlefs the appearance of trade was promifmg
enough to create in them the belief of a return.

After thefe preliminar}' obfervations, the report dates,
that attempts had been made to open a trade with Japan
in 1613, 1616, 1620, and 1623, at which laft period, it was
determined to abandon the fcheme as impracticable, firft, be-
caufe the articles proper for fale in Japan confifted chiefly of
Indian and China manufaftures, viz. Silks and raw filk,
fpices, drugs, fandal wood, hides, &c. with a very fmall pro-
portion of Europe articles ; Second, becaufe their plan of
opening a connexion with China, through Japan, and of ex-
tending the circuit of trade from India to China and Japan
was imprafticable ; Third, becaufe all their endeavours to
form connexions with China, through Japan, (and thefe
were tried at a much later period in 1673) had proved unfuc-
cefsful. Whether the want of fuccefs was owing to the In-
terferences of the Dutch eftabliflied at Tywan, or to the
political confufions in Japan itfelf, it is difficult to fay, but
that thefe attempts coil: the Company near ^(".50, 000, is on
* their

AND TRADE IN THE EAST INDIES. 561

their records. After ftating in ^vhat the cargo of a Dutch CHAP. ii.
fhip from Japan, confifted, viz. copper bars, camphire
wax-works, filic-flufrs, china-ware, fome tea, Fingofa rice, Sec.
they conclude that this market would afford but an unpro-
fitable return for Britifli produce. The report then ftates,
a propofal made to the Company in 1782, to revive the
trade with Japan. It appears in this propofal, that a fhip
of 800 tons would be required, 200 of which would be fuf-
ficient to flow the merchandize from Europe, eftimated at
about ^(".7,000 flerling, and confifting of fomc broad cloth,
ferges, tortoife Ihells, quickfilver and faffron, &c. with
about _^. I5O00, to be inverted in prefents for the Japanefe ;
and of India goods, confifting of Bengal filks, pepper, &c.
the whole of the cargo valued at jT. 2 6,000 (lerling, for which,
in return, might be had refined copper, 7500 peculs, at
i33^1b. per pecul, Englifh weight, in camphire, 700.
peculs.

From the whole of this evidence, the report concludes,
that the export trade to Japan, neither can be an objedl of
attention to the manufacturers or merchants of Britain, nor
of material corifequence to the merchants of India. Sup-
pofing, fay they, that woollens, lead, &c. were fent from
Britain to Japan, to the amount of j^.8,ooo (and this is the
extent of the probable demand) there could only be ob-
tained, in return, about ;C.3o, 000 or ^^"32,000 value, in cop-
per, an article to be found in Britain, and whic-h if brought
from Japan, to be difpofed of in India, muft be to the prejudice
of our home mines ; fo that while we were gaining only

Part II. jC-8>ooo

362 OF THE BRITISH GOVERNMENT

CHAP. II. ^.8,000 of exports of one kind of our produce, wc fliould

be lofing;jr.32,ooo of another. Quickfilvcr, the onlv r)ther J

article of the propofed export, can be obtained at a cheaper

rate in China, and of courfc the exchange of it could brini; i

nn i-pl-nrn frfim Tannn. Thp vcnnrf flien^fore infers, thnt "■

no return from Japan. The report therefore infers, that
an export trade to that ifland may be calculated, for the
commerce from one part of India to another, but would not
promote the exports of Britilh manufacture.

The report next proceeds to examine, upon evidence, the
probability of an export trade to the Coafts of the Gulf
of Perfia. It flates, that no country appears to be better
calculated for trade than the coafts- of this fca ; on the
one fide is Arabia, at the one extremity Buflbra, communi-
cating with Bagdad and with RulTia by means of the
Cafpian Sea, and on the other fide, what formed the
Pcrfian dominions, connecfled inwards ■with rich countries,
and ftretcliing downwards to the Indus, by which, it
might be fuppofed, a trade might be opened through
Lahore and Moultan to the counti'ies bordering on the great
Peninfula of Afia. During the reign of Nadir Shah, they
obferve, that attempts were made to open a trade with this
part of the ci all, but the woollens were leized by the Chiefs,
and the promifcs of redrefs never performed. From the
death of this conqueror to the cftablilhment of the power of
Carem Chan, the whole of this part of the Perfian empire
was plunged in thedcepeft diftrefs and confufion. No pro-
tection could be obtained from the Chiefs, who ufurped the
power in the countries bordering upon the Gulf, and though

during

AND TRADE IN THE EAST IxXDIES. 563

during his fhort reign, commerce had a promifmg afpect, yet,
that fince his death, in 1779, every thing has been confufion
and oppreflion, till the acceffion of his nephew Jafficr Chan.
The aflafTmation of this Chief in 1789, put an end to the
profpe6l of trade, and there is only a probabihty, which
cannot be calculated on, of renewing it under his fuccefTor.
That if wefurvey the country round BufTora, a dependency
on Bagdad and a part of the Turkilh Empire, the diffi-
culties of carrying on trade will be found equally infur-
mountablc, owing to the perpetual changes and anarchy
in the government : that Buflbra itlelf, (though fitu-
ated near the jundion of the Tigris and Euphrates and
the obvious flat. on for trade between India and the coun-
tries that ftretch towards Europe) is cxpofed equally to the
oppreflions of the Turks, and to the piratical depredations
of the Shaiks on the Coafts of the Gulf: that the Com-
pany have been obliged to abandon the commercial ftations
at Ormus, Gombroon, Bufliire, and Bundareck; that at
the defne of Carem Chan, they re-eftabliihed the ftation
at Bufliire, yet that on the whole the profits of the trade in
the Gulf have never anfwcred the expenfes : that when pat-
terns of the Norwich and Manchefter manufactures were
fent to BufTora and Bulhirc in 1788, of qualities and colours
fuited to the tafle of the Perfians, the invoice price was fo
high that the goods were returned : that from a fucceffion
of wars, Pcrfia has been drained of gold and fdver, and
that for a long feries of years the inhabitants have eflablillied
manufactures of coarfe cotton and other articles for common
wear, as ith which the fouthern parts of Perfia are at prefent
Part II. 4 C fup-

CHAP. II.

364 OF THE BRITISH GOVERNMENT

CHAP. II. fupplied : that notwithftanding thefc obftru6lions, Euro
pcan articles (and woollens in particular) would fell in
Perfia ; but that to judge of the trade, we muft take into view
the profit and Ids on the whole, the means which Pcrfm pof-
feffes of payii>g for the goods, and the competitions to be
expe6lcd from European foreigners, with the cxpenfes of
maintaining the eftablifl^iments at BufToraand BuiTiire,

The average amount of the annual lofs at Bufibra is
jT. 5,406 be fides jC. 2,311 for fupplies furnifhed the Bombay
cruifers and the charge of receiving and forwarding packets
to and from Europe. The average amount of the lofs at
Bufliire is £. 1,498 befidcs £. 340 per annum to the Bt:)mbay
cruifers, equally neceffary for the protc61ion of the trade to
both ports. The calculation of the freight for a Europe
cargo to the Gulf is jC-io per ton, exclufive of other charges
A\hich would be incurred by individuals. The reafons
which have induced the Company to maintain the ftations
of BufTora and Buihire were, . the impracticability of form-
ing an eftablifliment on the borders of the Red Sea where
no protection could be given them ; the poflibility
that Arabia and the "interior parts of Turkey and Perfia
might come under a more regular government, in which
event, thcle ftations are the beft for trade. If preferved,
the Company's fcrvants on the fpot would obtain the
beft intelligence, and the cxpenfes of a new cftablilh-
ment be faved. It is here (they add) to be rccolle6ted,
that the proceeds of the goods fold, muft be inverted
in the produce of the country, and that the prices at

which

AND TRADE IN THE EAST INDIES. 565

which goods mufl be fold, would be below the nominal C'H.\p. n.
courfe of exchange. If individuals were to receive gold or
jfilver in Perfia or Turkey, inftead of produce, the lofs
from the fcarcity of the precious metals, would be ftill more
confidcrable ; if Perfian produce then, fhould be taken in
return for European articles, what is this produce? Silks,
brocades, carpets, &c. * Thefe are not in demand in Eu-
rope. The imports from India, to Buflbra and Pcrfia,
confifl: of Bengal piece goods, chintz from the Coaft,
&c. t 3nd a confiderable part of thefe are got off in Arabia
and Turkey as well as Perfia. Firft, thefe exports are
not Britifii produce and would be taken in thofe coun-
tries in preference to woollens and other European articles ;
next, the Perfian produ6ls are not fuited to the Indian
markets 'and much lefs for Europe. Hence, the Indian
goods muft be paid for in Perfia by gold and filver.
To procure this bullion, the goods mull be fold at a

* To which the report adds, manufaifturcs of fteel, fword blades, fpcnr heads
•3-uii-barrels, glafs, rofe water, otter of rofes, cotton, cloths, fome fliawls, flicep (kins
dreflcd in a very fuperior manner, raw-filk, fome indigo and tobacco, rhubarb, irak,
drugs of different forts, dried fruits, cotton, mines of iron and copper, wool of the
Kerman flicep in fmall quantities, wines, marble, and fome trifling articles ; to whii-Ji
oiuft be added, Perlian and Turkilli coins, Venetiaa chequins, ijermaii<:rowns, and
gold and lilver in barj.

•j- To which the report adds, longcloth, Porto Novo blue clotli, IMalabar, Surat
and Guzcrat piece goods, cuttannees, cambay, chunders, broach and feindy cotton,
cotton yarn Ihawls, bamboos. China-ware, fugar, fugar candy, pepper, ginger, car-
demoms, cloves, nutmegs, cinnamon, calfia flowers, muik-lack, camphire, turmeric,
indigo, tutenague, red lead, coffee, tobacco, Brilifli woollens, iron, lead, ftccl, tin,
and a variety of drugs.

Part 1L 4 C 2 low

566 OF THE BRITISH GOVERNMENT

CHAP. II. ]o\v price ; the gold and filver of PeiTia, bcfides, are drained
independently of trade by the annual refort of 10,000 pil-
grims to Kubelly and Mecca. If under the whole of thefe
circumftances, the report fubjoins, the trade between India
and Perfia is a forced one, ho^Y much more would it be fo
to the European merchant, carrying Britilli produce to
Pcrfia to procure what gold and filver it could bring.
The importer could not, in India or elfewherc, find a pro-
fitable market for the produce of Perfia. Having examined
thefc fubjefts, the report concludes with ftating the compe-
tition between the Turkey and the Indian Companies in
the fale of woollens in this market, at a period when the
Perfian goods did bring a price in England, fuch as filks,
carpets, &c. Even at an early period in 1681, the Com-
pany only continued this traffic, bccaufe they were com-
pelled by their charter to fend out woollens to the Eaft-
Indies, and carried part of them up the Gulf to prevent a
total lofs. As however, the filk manufa6tures of Perfia
have never been an obje6l worthy of the attention of the
Britifh government, as the duty on the importation of
raw-filk from Perfia has prevented our manufa6lures from
gaining ground on thofe of foreign European nations,
as France in particular, has been fupplied with it from-
Marfeilles in return for its woollen manufactures, and as
Perfian filk finds its way in large quantities to Mofcow, the
conclufion is, that the export of Britifli produce and manu-
fa6lurcs to Perfia, by fca, cannot be cncreafed either by the
Company. or by Individuals, while that country and thofe

adjoin-

AND TRADE IN THE EAST INDIES.

S^7

adjoining to it remain without a regular and well ellabliili- ^^^a p. ir.
cd government.

From this report it appears, in the firfl place, that the
political fituation of Japan renders a commercial eftablilh-
ment on it impra6ticable. The natives are, as yet, ftran-
gers to the principles of trade, and difpofed to plunder
the Europeans wifhing to. fupply their wants and to par-
ticipate in their comforts. If a fpeculator were to carry
Britifli woollens to Japan, and, in return, to take copper,
he refleifts not, that he might have carried, the fame article
from Britain to the India market, and have fold it to the
Indians at a lower price. But fuppofing the adventurer to
be allowed an open trade to Japan, and that upon a little
capital, and in a fmall fhip of 200 or 300 tons, fuch as the
Americans fent to India, he could try the experiment of
trading in woollens, &c. and of bringing copper, &c.
from that illand, which might or might not fell in India;
it is doubtful whether the profit would pay the charges, and •
whether he could repeat the voyage, and not lefs fo,
whether he would be flattered by imitators. It is rea-
fonable, however, to conclude that he would not obtain
the fandlion of the Legiflature for the expedition ; becaufe
by giving it, they would deprive the Eaft-India Company
of the profits (fuppofing the natives to become mo recivilized
than they are) which the Proprietors of India flock are
entitled to draw, to reimburfe them for their laudable and
cxpenfive efforts, to find a market in Japan for the exports
of their country.

Part H. From

Obfcrvations
upon this
report, ari-
iing tiom the
hillor and
aftuailbtcof
the trade to
Japan and
Pcrfia, and
to the Iflands
in gcncraL

•^6S OF THE BRITISH GOVERNMENT

CHAP. 11.^ Fro.m this report it appears, in the next place, that the
pohtical anarchy on the coafts of both Gulfs, have ren-
dered trade almoft impracticable in cither. In proof of this
obfervation the Direttors might have reforted to their com-
mercial hiftory, and added, that the Company have at-
tempted to form an eftablidiment at Tatta and to carry
the falc of Britifli produce, particularly woollens, up the
Indus, through Lahore into Candahar and the adjacent
king.loms; but that after many trials, and after giving
confidcrable bribes to predatory Chiefs, they could
only obtain grants, which were receded from as foon as
given : tliat though this ftation furniilied feveral articles in
demand in the China market, and, in particular, falt-petre
of a fuperior quality for the Europe market, yet that it
could not be maintained without a naval and military
force, and that of courfc they were compelled to reli;iquili
it : That they had attempted fettlements at Ormus and Gom-
broon, but had been driven from both of thefe places, and
that though they had aided Carem Chan, and the Shaik
of Bafliire, alternately with the Turks, by their Bombay
marine and troops, 3-et that they could neither recover the
prizes which the pirates from the ports of thefe Chiefs
had taken, procure re-imburfemcnt from the Bafhaw of
Bagdad, the Mufaleem of BulTora, or the Grand Seignior,
the fuperior of both, nor the expcnfes incurred by the
fleets and forces which had defended their pofreffions
againfl: the Chaub and Shaiks. That they could not
even, when thele juft claims had been receded from,
obtain privileges of trade at Buflbra, which could balance
s the

ANDTRADEINTHEEASTINDIES. 56^

the profits, drawn by the French and other Europe- chap. ii.
ans from their overland commerce by Bagdad to Buf-
fora : that, in fine, though poffefTed of thofe Indian pro-
vinces which yielded the piece goods, opium, &c. fought
after by the Arabs on the fliores of the Red Sea, and though
admirals of the Mogul, for the Guzerat, and carrying pil-
grims from Suratto Judda; yet, that, without a force which
the profits of the trade to the Red Sea could not pay,
they neither could procure the coffee and the other arti-
cles of Arabia fought by the Perfians and the Turks, nor
bring thofe articles home in quantities fuflicient to lower
the price to the purchafer in Britain, or on the continent
of Europe; much lefs, in fuch quantities as could in any
degree, enable them to meet in the market the low price,
to which the Weft-India cofTee had been reduced in Eu-
rope. Speculation, thus, in trade, if it is the fpring of In-
duflry, may alfo be its bane ; for, like Ambition, it is
an objedt of admiration only, when it is guided by Reafori
and Experience.

To cut ofl", however, every caufe of complaint from
the private merchant, the Company, as in the India
and China trade, may be obliged to furnilh him with (hip-
ping at a reafonable rate of freight. In this cafe, how-
ever, from the danger and uncertainty of" the trade to the
iflands and to the Gulfs of Perfia and Arabia, it will be
reafonable, that not only in the exports and imports fuch
merchant fliall proceed fblcly on his own rifk, but that
fuch fhipping fhall be at his fole expenfe, unlets the Com-

Part 11, pany

57°

OF THE BRITISH GOVERNMENT

cu.\r. II. pany fliall find it expedient to renew the meafurc of fending
lliips to thefe fcas on their own account.

objeaionsto In the fourth place, the opinion of the Public, as well

beexpedcd , , ,., • V i -n -hi

from the ES the deliberations of the Legiflaturc, will have to meet
cmimiriesot" embarraflments from the agents or emiflaries of foreign
toreign com- European Companies. While the trade to the Eaft-Indies

panics. i i

was carried on by the other European nations, and by the
Englilh, merely as a trade, no other difference exifted be-
tween them but the prices Avhfch the exports of each
would bring in the Eaftern markets, and the quantities
of Afiatic produce which each could difpofe of at
their Europe fales. During this period, the balance of
trade vibrated between Holland, France, and Britain, with
the weight which the companies of Denmark and Sweden
could throw into the fcale. The contraband trade from
Holland, Sweden and Denmark, chiefly operated againft
Britain, and did little if any injury to the India trade of
France. From the period, however, at which Britain
acquired its territorial polTcffions, and could not only
throw the furplus revenue into its trade, but by the
magnitude of its concerns, bear down thofe of its former
rivals, a natural jcaloufy of its commercial and politi-
cal influence in the Eaft united foreigners in the com-
mon meafures of countera6ting our progrefs. Hence the
plans in France, after the peace 1763, of opening the
trade to India ; and, when this expedient failed, of re-efta-
blifhing their Eafl:-India Companies with new privileges.
Hence the queftions which had nearly led to a war with
4 Spain,

AND TRADE IN THE EAST INDIES. 571

Spain, upon the Company's endeavouring to carry their chap. ii.

trade to new corners of their hmits ; hence the efforts of

the Dutch and French to exclude the Company from a trade

on that part of tlie Malabar Coaft, which has recently

been added to the Britifh empire ; and hence the practice

of an illicit commerce to the Eaft under the Swedilli, Da-

nifli and Imperial flags.

To prove, that foreigners have beheld the encreafe of the
Britifli power and trade in the Eaft, with envy, requires only
our recollecting the general combination which was formed
among the Indian powers during the war 1784; that the
fcheme did not entirely ceafe at the peace of that year,
needs only for proof an appeal to the fource of the late
war with Tippoo Sultan, and of the promifes he obtained
from France of afliftance, in difturbing the tranquillity of
the Carnatic. Though the politics of Europe have taken an
unexpected turn, and though no forefight can conjecture the
iflue, ftill Britain will have to confolidate its power in the
Eaft, and to expe6t the fecret oppofition of rival nations.
Should the credit which the joint-ftock of the Englifli Com-
pany, and the relation v/hich Indian revenue bears to the
trade be interrupted, foreign companies might employ por-
tions of their joint-ftock to bear down our trade in China
and in India. With credit greater than that of the private
merchant, if they could not obtain a fuperiority in the
Indian commerce in -which our power or influence might
check their machinations, they might foon acquire a de-
cided fuperiority in the trade to China. Already known

Part II. 4 D in

57Z OF THE BRITISH GOVERNMENT

cn AP. u. jii that market, foreign companies v.'ould, in fuch circum*
fiances, endeavour to excite jealoufies of the Englifh. A
fmgle irregularity in the Britifli private trader, would give
their opponents a preference in it, and thus, if our recent
conqucfts have any vakie, from putting in our hands the
commodities fitted to ftrengthen the commercial intercourfe;
between India and China, we might, by affording foreigners
the means of counterafting us, deprive ourfelves of one of
the moft profitable ways of realizing the Indian revenues
in England.

It cannot, therefore, remain a queflion, that the agents
and emiflaries of foreign nations, wifhing to participate with:
us in the India trade, will lecrctly endeavour to prevent the
renovation of the Company's charter, in the hope that, as
foreigners, they might draw part of the trade to themfelves^
or as adventurers connected with Englilli merchants, might
carry it on partly on Britifh capitals. It is to be recolle6ted,
that if the exclufive privilege fhould be taken from the
Company, and the revenues be placed entirely under the
management of the executive po\\'"er, it is doubtful whe-
ther any controul over the India Company's trade could
be continued, any more than it is exercifed over the
trade of any other commercial Company in this country^
It is obvious, however, that the Company would ftill con-
tinue a body corporate, entitled to trade on a joint flock ;
that foreigners, by becoming purchafers of (lock, might
acquire an undue influence in Leadenhall Street, and that
this influence might be ufed to divert the imports from the
i Eaft

AND TRADE IN THE EAST INDIES.

573

Eafl: into foreign ports, to the detriment equally of our CHAP. ii.
home cuftoms and duties, and of the general navigation of
Britain. The number of ihips employed in the import trade
as well as the tonnage occupied by the re-export trade,
might, by fuch a mcafure, be diminiilied or loft^

Supposing, however, thefe evils to be imajrinary only, Con^<:q.u«»-
there is one confequence of depriving the Company of its ingtothem.
exclufive rights, of which foreign nations muft obvioufly
avail themfelves. In the event of Britain beins; involved in
a war, either in Europe or in India, and our trade to the
Eaft, at the fame time, being laid open, not only foreigners
as merchants, but the private Britilli trader, who had rilked
his capital in the trade to India or to China, in fhips under
foreign flags, would ilielter hirafelf under a neutral flag and
become poflcfled of the greateft fliare of the trade. Neutral
powers in Europe could, in fuch circumftances, carry on the
trade both export and import, vrithout any but the common
rifles in peace, while either the Company continuing to trade
on their joint flock, or the private Britifli merchant, in the
capacity of a fair trader, would be expofed to all the con-
tingencies of war. The balance of profit, of courfe, would
be in favor of foreign countries, or of the illicit Britilli
trader under their flags, while the Company and fair private
trader neither could fupport a competition with them, nor
the expenfes of a long circuitous voyage. They could not,
were even this objection unfounded, defray the charges of
an encreafed infurance, nor bear up under the lofles of cap-
ture by an enemy. If then foreign nations, from a naiural

Part II, 4 D 2 rivailhip.

574 OF THE BRITISH GOVERNMENT

CHAP. II. rivalfliip, will endeavor, by their agents, to fnatch from the
Englifh Company the privileges which it enjoys, and if, as
the mod fnccefsful means of bringing about this end, they
would fccretly inftigate the Britilh adventurer to unite with
them in meafurcs, the tendency of which, from a natural
love of his country, he probably does not forefee, nor if he
did, would be induced to fupport, it is the duty of the
Englifli nation, about to decide on the greateft commercial
queftion which has ever been fubmitted to their candor and
judgment, and for the Legiflature, in a particular manner,
to be on their guard, againft the infidious fchemes of its
foreign, fecret, or avowed enemies.

ThefeObjec- Having thus pointed out the probable means which

tions afford • /, , i • ta /i

an additional men who wilh to bccome adventurers m Ealtern trade,

condiuiing which mcu, who are to draw their fortunes from flock-job-

b!u modifild '^^"S ^^ "^^'^° ^^^^ ^^y ^^ engraft, on Indian affairs, their

privileges of domeftic political ambition, and which men, who are to i'pe-

the Com- '- , . „ . ^

pany. culatc in our manufactures, and the emmancs or agents of

• foreign companies may refort to ; and having endeavoured
to guard the Public againft their plaufible, but infidious
fchemes, by ftating the probable conlequence of adopting
them, we have now only to recur to the principle, upon
which it has appeared expedient to renew the charter of the
Eaft-India Company, and to bring forward propofitions
for the future regulation of the trade. Thefe propofitions,
it is obvious, mud accord with the nature of the govern-
ment required for Britiih India, and of the judicial, finan-
cial, and military powers under this government. They

mufl:

AND TRADE IN THE EAST INDIES.

575

muft alfo be calculated to invigorate the trade which binds chap. ii.
India to Britain, and have, as the leading objeft, the mu-
tual benefit of the Eafl-Indxa Company and of the Public.

There are three difl:in6l afpefts of the Eaft-India trade, The whole of
the exports from Britain; the exports from India cir- d^at^adedu
cuitouflv to the Iflands, to China, and to Britain ; and the ^'''i'^'« '"'<>

- _ ' J V. exports, cir-

imports, in general, from the Eall Indies to Britain, con- cu'tousex-
fifling of Indian and Chincfe manufaclured produce, raw in the Com'."
materials for our manufadlures, and the re-exportation of andhiipon^'
the former to European or other markets. ^-' E"™F-

Upon the fuppofition that the exclufive trade (hall be '
conferred by the Legiflature upon the Company, for a
further term, it is to be recollecled, that though the ma-
nagement of the trade will neceffarily be in the hands of
the Diredors and Proprietors, (till it is to be a regulated
trade, and in its principle and progrefs to be under the con-
troul of the Commiffioners for the Affairs of India, and of
Parliament. The following fuggeftions, therefore, on the
branches into which the trade divides itlelf, viz. Exports
from Britain to the Eaft, circuitous trade within the Com-
pany's limits, and imports to Europe, with which is con-
nected the re-expnrtation trade from Britain to His Ma-
jefty's European dominions, or to the dependencies of the
Britifh empire, are fubmitted for confidcration.

First. It is fuggefled, on the fubj<fi: of the export trade,

and with the obje6t of removing every objedtion a^ainft the

Part II. exclufive

576 OF THE BRITISH GOVERNMENT

CHAP. u. exclufive privilege of the India Company, that the ex]7ort

j-'\pc,i Trn<!c. of Biitifli Produce lliould be opened to the individual mer-

tnro^il^h t!,e chant or manufacturer, upon his own rifk ; that is to fay.

Company's ^^-idX the Company ihould fmd lliippins; at a moderate rate

fiiips, the ex- ... 1 I »

port trade to of freii^ht, to the individual merchant or manufaflurcr,
merchant .md who may chufc to cxport produce from any of His Majcfly's
on thdfown European dominions to ports or places within the Com-
""'• pany's limits, intimation being firft given by fuch exporters,

(at a time to be fpecified) fome months, at leafl, before the
commencement of the feafon, at which the Company's iTiips
leave Europe, of the quality and quantity of the goods he
intends to fend, and fecurity that the goods arc to be ready
for reception into the Company's warehoufes by a fpecified
day. By this expedient the individual exporter will have
e\"ery advantage, which he could propofe, from an open
trade to the Eafl-Indies, and yet the Public will have fecu-
rity, that the preference which the Britilli produce has
had in the Eaftern markets, fhall continue upon the folid
bafis of the intrinfic value of the goods. The great national
obje6l thus will be gained, viz. that of extending the ex-
port trade as far as the demands for our produce, crude or
manufactured, will bear*.

Second.

* In illuftration of this propofition, it is to be obferved that thefc exports confift
of fiich articles as are manufactured from materials which are Britifli, luch are
woollens, hardware, lead, tin, copper, &c. and of fuch articles as depend upon
materials brought from the Eaft-Indies, fuch are wrought cotton, filks, &:c. The
export ot both kinds fliould be of a quality that will preferve the eftimation in which
BritiHi nianufa(^ured produce is held in the Eaftern markets. It is alfo to be ob-
fened, that the Britilli mines can furnifh lead, tin, copper, &:c. of an equal fineuefs
and at a lower price than thefc articles can be had, either from the Continent of
Europe, or from the Eaftern lli;inds. The Court of Directors hare liftened to this

propoUrion

ilND TRADE IN THEEAST INDIES. 577

Second. It fuggefted on the fubjc6t of the circuitous chap. u.

trade, ift. That it ihall be recommended to the Com- Ciradtous

pany to lay down fuch regulations for their foreign govern- ui'eCompuny

ment as may tend to encreafe the exports from India to ^° «"?p'oy

' , ihips in car-

China and the Iflands, and to the Gulfs of Pcrfia and rying indiai>

Arabia. Foi- this purpofe they might annually fend out Ihc diffcren't
a certain number of their Ihips, before the time at Avhich ^^^'i't'i'^i^'t^hc;,;
the fhipsof the feafon ufually leave England, or at Icaft, as i""'''--
early as the nature of the voyage will admit of their fail-
ing, for Coaft and for China, for the purpofe of taking on
board, on the Company's account, fuch parts of the pro-
duce furnifhed by oair former, or by our new acquifitions, as
are in demand in the Iflands, in. China, or at the Company's
feats of trade upon the Coafts of the Gulfs of Pcrfia and Ara-
bia. It might be left to the refpe6live prefidencies, to judge
from the price thefe articles will bring at the different
markets, what quantities of Indian produce will find a falc^
fufficient to defray tiie encrcafcd cxpenfcs of the voyage.

In illuftration of this plan, it may be obferved, that by
fuch an expedient, the profits of the trade abroad woul d
be confiderably encreafed, and the exports from India, of
the foreign European companies to China, diminiflied.

propofition with a Uberality that lefledls honor upon their proceedings, in their
** Obfervations upon a Letter from the Right Honorable Henry Dundas, dated the
l.6th February 1793," they propofe to furnifli, every feafon, four (hips for Bengal,
two for Madras and two for Bombay, of 80Q tons each, or tonnage equivalent thereto,
for the purpofe of receiving any of the manufadlures of Great Britain or Ireland, at the
freight oi £.10 per ton, weight or mcafurcment (recruits in time of war excepted), if
the fame fliall become ncceffary. Page 15 of " Papers rcfpeifting the Ncgoclation for a
" Renewal of the Eafl-India Company's ExcluTivc Trade.'^

Part IL Many

57S OFTHEBRITISH GOVERNMENT

CHAP. II. Many of the productions of India, find a profitable market
in China, from the eircumftancc of Engli(h pro:>crty being
veiled in that trade, as carried on by foreigners. It has
been common with the Company's fer\^ants, and other li-
cenfed inhab;tants, to advance a fum to the private mer-
chant in India, on a rcfpondcntia bond. With this fum
the merchant purchafcs India goods, (for example) for
the China market, and having fold them at Canton,
he is enabled to purchafe China produce for the European
markets. The bond is payable in London, by the ow ncrs of
fuch lliips, and fent for acceptance, either to agents of foreign
companies in England, or to the Danifli and Swedilli compa-
nies. An intereii of about 9 per cent, is paid on the bond,
from the time it is fuppo^ed the original cargo has been fold
in China, or the China goods in Europe ; that is, 6 or 9
months intercft is drawn, at the fame time that the prin-
cipal is paid off, and that generally about t^\elve months
alter the arrival ot the Ihip in Europe ; in other words,
when the borrower of the money has realized the whole
profits of the voyage. In this way, foreigners have- been
enabled to trade upon a capital that is Britilh, to the detri-
ment equally of the circuitous trade in India, and of the
Company's fales in London.

It may alfo he obfcrvcd upon this mcafure, that not only
our ancient poflelTions, from the nature of the produce they
afl'ord, but our recent acquifitions, in a particular manner,
are calculated for this circuitous commerce. From an au-
thenticated account of the Company, it appears that the
cotton imported at Canton from India, from 1775 to 1784
6 inclufive,

AND TRADE IN THE EAST INDIES. 579

inclufivc, amounted on an average in Company's lliips, CHAp.il

ton? cwt. tons cwt.

to 673 15 in country fliips to 930 lo annually. The

tens cwt.

average by foreign (liips annually, 260 5 and that the
average price for 10 years, was 168 tales per ton. Judg-
ing from this fingle example, and from the general ac-
counts of the private traders from India to the Iflands or
to China, or to the Coalls of the Perfian ajid Arabian
Gulfs, it would be advantageous to the general intercfts
of England to carry on the trade from India to China, as
far as poflible, upon the Company's credit and account ;
for fuppofing the former minutenefs of their concern in this
way to have arifen from the difficulty of making up an
aflbrtment of Indian produce for thefe markets, that diffi-
culty is now done away by our late territorial acquifi-
tions. We have now no longer a native po'\\'er, like Hydcr
Ally or Tippoo Sultan, to reftrain and opprefs the Com-
pany in procuring the pepper, fandal wood, &c. on the
Malabar Coaft, but are, in fact, the Proprietors of the
country which produces thele articles. Hence, if the fur-
plus revenues from all our pofleffions can pafs more profit-
ably to Europe by a circuitous trade to China (and this muft
be the cafe from the profits on refpondentias already referred
to), it is of importance, that this branch of the Company's
trade fliould be under a regulation proceeding immediately
from the Direftors themfclvcs.

In the event of the non-arrival of the Company's fliips Cafcs in
deftined for the fervice, it may be for the confideration of the ^'''"chcoun-

' •' tiy fliips in;iy

Dire(!:tors, whether they ought not to authorize the Prcfidents !'= f'npioyej

T» -rr T, . ""this trade.

Part II. 4 E and

5So OF THE BRITISH GOVERNMENT

CHAP. II. and Councils of Bengal, Madras and Bombay, to prepare
cargoes of Indian produce for thcfe markets, and to take up
country fliips at a reafonable and dated freight, and fend
them with India produce dired to Canton, or to fuch ports
of China, into which (in the event of the embafly fucceed-
ing) the Britifh fliips may find admiffion. It is obvioufly
for the intereft both of the Company and of the private
merchant, tliat none of the contingencies, incident to a long
navigation, fhould impede the returns expcclcd by the one
or the other.

Should the prefent embafiy fucceed in their attempts to
open a trade into the interior of the Chincfe empire, the
exports, both from Britain and India carried to the China
markets, would then be lowered as much as pofiible in price
in that niarket and augmented in quantity. The fadories
in China would of courfe be able, at all times, to have goods
ready to be exchanged for what quantities of the China
produce the Company may require, to bring down the prices
in the Europe market, below that at which the European.
Companies can fell, whether fuch articles as are for im-
mediate confumpt, as teas, &c. or fuch articles as miniiier
to our own manufadures, as raw-filk, &c. or may be in
demand for re-exportation to the foreign European markets,
as teas, porcelain, &c.

j.Tocftablifli

diateftatiTns' SECOND. It is fuggclled for promoting this circuitous
ot trade m tj-adc, to eftablifli as many intermediate Nations between

the countries ' •'

within the India, the Iflands, China, and the two Gulfs'us the trade

CoHipany's , \ r -m n. ■

rmiio:asthe will admit of. On this lubjedt, we mult tor illultration

can afford. •^^^^

AND TRADE IN THE EAST INDIES; 581

have recourfe to the experiments aheady made, or to thofe CHaP. n.
making by the Company. From the report of the Direc-
tors upon the trade to the Gulfs of Perfia, it appeared, that
Indian is better fuited than European produce for that
market, and that if Perfia has httle to return. but its hmited
quantity of gold and filver, at inch an unprofitable ex-
change, as has hitherto made the trade with it, rather a
forced one, lliill that this commerce mud chiefly be carried
on between India and Perfia, rather than between Europe
and Perfia. It has been found too, that though the Iflands
will accept of many European articles, yet that the Indian
produce will find a better fale in them. It has been found
alfo that thefe Iflands furnilh many articles which they give
in return for European and Indian produce, and that arti-
ticles will be accepted of in the China market, as elephants
teeth, coral, &c. in particular, that the new trade to
Nootka Sound furniflies articles in general demand in the
north of China, as furs, and that, upon the whole, though
the plan of eftablifliing new ftations in the countries within
the Company's limits may be an expenfive . one, yet, that
the Company alone can carry it into effe6l, and ought to be
encouraged in forming them. In this way, the returns to
Europe will neither depend upon our exports alone, nor
upon the weight which the furplus revenue pafllng to
Europe, neceflarily throws into the general trade of the
Company : The profits of a trade it mufl be remembered,
do not fo much depend upon the price which any one
commodity will bring, as upon the number of profit-
able exchanges which can be introduced into the circle of it.
Part II. 4E 2 Third.

3S2 OF THE BRITISH GOVERNMENT

CHAP. II. On the fubiecfl of import and re-exportation, it is for the
LctriflatLire to confider in what way this important branch

t.xfx>riatio:i of thc Eaft-India trade may be improved. In fubmitting ob-
fervations upon this iubjecl, it ought to be prcmifed, that dur-
ing the laft twenty years the Britiih manufadurers have, out
of materials brought from the Eaft, imitated mofl: of thc pro-
dudions of the Afiatic arts, and w ith fo much fuccefs, as
not only to have divided the profits with the Company,
but to have, by their progreiTive fkill, checked thc encou-
ragements required for reftoring internal profperity to the
induftrious artizan and manufacturer in India, To curb
thc Britifh manufacturer, on the one hand, would be
unfair, to ruin thc India manufacturer would be unwife;
the profperity of an empire depends upon an equal diflribu-
tion of advan.tagcs to all the parts of it. The Legiflature, of
courfe will ha% e to take care that neither thc Afiatic ingenuity
and indulhy (liall fail of its reward in thc Eaftern and Eu-
ropean markets, nor thc European ingenuity and induftry
be in want of materials on which they can be exercifed;
thc markets of the world may be opened to both, and the
competition of the diltant parts of thc fame empire become
the fourrc of their common profperity.

1. Encou-
ragements to First. Upon thefe fubjecls, it may be fuggcfted, in connec-

thecLiitureof tloH With thc icttlemcnt of the rcnts of lands, and duties and

tbrou'rTna-^^ cuftoms upou arts and commerce in India, as marked out when

nufartuies trcatincc of the financial power, to hold out to our native

and aniclcs . ,

ofconfumpt fuhjcds iu Hlndooftau every pollible encouragement for
and iu Bn'- ' railing and exporting fuch raw materials, as cither arc \ifed

fain. L„

5 tty

AND TRADE IN THE EAST INDIES. 5S3

by our home manufa6lurers or are in coiifumpt in our home chap. ii.
markets; of the former kind are cotton, raw-filk, &c. of
I the latter k!nd are, ind'go and fugar from the Bengal

Provinces, and pepper and cinnamon from our new acquifi-
tions on the Ma'abar CoaO:. The in ft of thefc kinds of
produce comprehends articles not only in demand in Bri-
tain, but in China, lb that while the encouragement to
raifrng cotton (for inftance) will cheapen the price of that
ufcful article at home, it will alio ferve as a profitable ar-
ticle of export to China, there to bring a price to be in-
verted in the produce of that country of a crude kind,
as raw-filk for our home manufactures, or articles of lux-
ury, as teas for the Company's fales. It has, in illuftratinga
variety of points on this fubjccfl:, been already obfcrvcd,
that the Indian produce ,fuch as pepper, fandal-wood, &c.
are in demand in the China market, lo that the encourage-
ment in raifine; them will tend to the common advantage
of our Afiatic dominions, and of the trade which is to
conne6t them circuitoufly in remitting the furplus revenue
to Europe. The latter of thefe claflTes of produce, or arti-
cles for the confumpt in Europe, fuch as indigo, fugar, &c.
while the culture of them will reflorc internal profperity
to the Indian provinces, it will have a material efFett upon
the home manufaflures and market. The culture of indigo ''

for example, a\ ill bring the price of it fufficicntly low, to pre-
vent combmatlons among the Weft-India planters for keep-
ing up the price of that neceffary article in the woollen manu-
fadure, and thus enable the merchant to export with more
ad\antagc the ftaple of this country. The culture of fugai"
will be equally advantageous to the Indian farmer and trader.
Part 11. by

5S4 OF THE BRITISH GOVERNMENT

CHAP. II. by enabling him to difcharcjc the rents on a property no\y
made perpetual to him, and it will tend to throw a fuffi-
cient quantity into the market at home, of an article which
has now become aimoft a neceflliry of life, and intimately
connected with the coniumpt of the imports from China,
while it will prevent th ■ combinations of which the pub-
lic have, with lo much rcafon, comphtined. By liefe
combinations the Weft-hidia merchants have raifcd the
prices in the home n^aiket, and at the fame time, enriched
thcmfelves by drawbacks on the re-exportation.

a. The Com- Second, It is fujiErefted in connexion with the plan of

pany to fur- . . ^'^ r • n n ■ ■ •

niiiithepii- obliging the Company to furnifh flii))pmg at a realonable
chant with I'^tc of freight, to the private merchant, for the export of
bmmn^*°' Britifli ptoducc, to require them to find ihipping, at a like
home raw rcafonablc rate, for fuch imports of law materials from the
return forhis Ealt-Iudics for our homc manufa6lurcs, as the fale of the
grant" hiii/° cxports Can purchafe, or to dire(5l the prefidencies abroad
bills. jQ gj^.g them bills for the proceeds of their exports, upon

fuch terms as may encourage the export trade from Britain,
and afford a fufficient compenfation to the private merchant
for making the return by bills, in place of doing it by an
homeward cargo. This indeed is but the necellary link,
in the chain of exchange, by which, without any rifk to
the homc revenues, the trade can be opened. For the
Company, on the one hand, if they do not import
materials fufficient for the home manufacturer, and at
fuch price as he can work with profit, will have no rea-
fon to complain of thcfe materials being brought home
at the rilkjof another, particularly when they are to have

4 freight

AND TRADE IN THE EAST INDIES. 5S5

freight on the import ; and the private merchant or manu- <-''HAP. ii.
fa6lurer will have as little reafon to complain, fincc he, by
this expedient, will have an opportunity of fjjeculadng to
the ntmoft extent of his capital, without being cxpofed to
the temptation of defrauding the public revenue, by carry-
ing Eaft- India imports to foreign markets, and without
being expofed to the charges of (hipping and infurance, be-
yond a reafonablc rate, cither on his export or import
trade.

Third. It is fuggefted to modify the duties upon the im- 3. Thcdutie*
ports of Eaa-India produce, on the following principle. Upon Zl\^'^Z't
the import of manufaftured produce in the proportion that 9*^""^ P""*^*
will keep up a fair competition of ingenuity and mduftry modified.
between His Majefty's Britifli and Indian fubjefts ; upon raw
materials, in the proportion that will give a decided fu-
periority to the Britifh manufadurer over the maaufacSturer
of the fame articles* among foreign European nations ; upon
the Eaft-India articles for confumpt, as indigo, fpices, &c.
from our own fettlcments, teas, &c. from China, as fhall
enable the purchafers at the Company's falcs, to buy with
greater advantage than they can do at thofe of foreign
companies, and, as in the cafe of teas (fince the pafling of
the commutation a6l,) to give to His Majefty's European
kingdoms the balance both of trade and of profit againft
foreigners, who, from not having Afiatic dominions nor /
fuch large, inveftments, muft neceflarily lofe in the com-
petition.

Third.

5S6 OF THE BRITISH GOVERNMENT

CHAP. ir. Third. It is fuggeflcd, that the 9th Geo. I. which cda-

4. Illicit tr:ide bllllicd ccrtaiii penalties againft tliofc concerned in the

iiuics i)y Oltcnd Eaft-India Company, (liall be explained and amended.

cham!\rad- Though this Company was abohllied by a treaty, fublc-

inj; under quent to that iicriod, the trade has, of late years, affumed

*01flj;ll flags, ^ ^ _ , •' _

tobL-thctk- anew and formidable alpe^t. It has been a pradice
with private adventurers in London, to purchafc old
Lidia lliips ; after giving them a thorough repair, thefe
iliips arc fcnt to Oflcnd, and loaded with goods from
Holbnd, the Aufliian Netherlands, and France, with a
fmall (quantity of Britifh produce, fuch as the Company
fend out, but chiefly with military ftores, to be difpoled of
to the country powers. On a Britifli capital, in this man-
ner, and with a Britiih fupra-cargo, though with a nomi-
nal foreign captain and under a foreign flag, the vefTels
employed in this trade have rcforted to India and to China.
Such part of their cxpoi ts as are Dutch, French or Ger-
man, as fpirits, wines, &:c. give advantages in the In-
dian markets to foreign nations, and check the Company
in their fales of the fame articles. Did their exports of Bri-
tifli produce confifl: of Britifli woollens, hardware, &c.
only, there might be a reafon for encouraging them ; but
as they chi fly confill of military and naval flores, to be
difpofed of among the native powers ; allowing thefe ar-
ticles to be furniflied by Britain, the trade is only calculated
to injure the Britifli provinces in the ports in which thefe
nominal foreigners, but really Britifli fubjeds, find pro-
tection.

AND TRADE IN THE EAST INDIES. 587

te6lion.* Upon the return of the vefTel from India or from chap. it.
China, under pretext of touching at Britain, one part of
the import cargo is fmugglcd, and another part has been
carried to Oftend, either to be difpofed of in Flanders, Ger-
many, and the North of France; or to. be kept in ware-
houles to be fmuggled as part of a contraband cargo of
European goods into Britain or Ireland, or to be fent to
our American and Weft-India dependencies. Such arc the
fa(5ls, and it is for the wildom of Parliament to devife ex-
pedients for remedying this growing evil. It will be al-
lowed, that it is contrary to the faith of treaties to interfere
with the flag of a foreign power ; but it has been not lefs
contraiy to the good underftanding fubfifl:ing between the
Brithh and Imperial courts, for the latter to afford its pro-
tedlion to the fubjecfls of the former in a commerce ob-
vioufly tending to abridge our revenues. Laying afide,
however, reafoning on the faith of treaties, or the honor
of nations. Parliament may declare the trade to be illicit;
and upon proof that the fhips, goods, and crews are Britifli,
confifcate the two firft before the fhips leave the Thames,
and outlaw the laft. Parliament may alfo fubjeif the fale
of the cargoes in the Britilfi ports in India, though it
cannot in China, to duties amounting to a prohibition.
If the exclufive privilege of trade is to be renewed to the
Company, upon the principle, that this is the moft expe-

* It has of late been a practice with the owners of thefe fliips, to purchafc French
woollens at Abbeville, and French imitations of the Britifti haiJware for this tiaiic,
at a lower price, and of an inferior quality, than they can find them in Britain.

Part II. 4 F dicnt

^83 OF THE BRITISH GOVERNMENT

CHAP. II. dient for the nation, the Lcgiilature w'Al, of courfe, extend
its prote6lion to them in every pofllblc way.

The Com- FouRTH. It is fiiggeftcd, that means ihould bedevifedfor
pany's faies fimplifyln'r the Company's fales, and doino; away the com-

to be lurther . . . is J

impioved. plaints which have, (perhaps improperly) been made on
this fubjeft. The retailer has complained that the lots have
been too large, and the private confumer that they have been
inacceflible to him, from the fame caufe. The retailer, in
the diftant towns of Britain itfelf, and much more thofe^
who purchafe Eaft- India goods by commiflion, to be re-ex-
ported to the Britifli dependencies and to foreign countries,
have complained, that the expenfes of agency and of car-
riage have raifed the price they can fell at, fo high, that
they frequently are unable to meet the fmuggler or the
illicit trader in the market, at lead with the fame advan-
tages that the retailers can do in London. If, on the one
hand, it would be difficult and perhaps dangerous, to inno-
vate on the prefent pradtice at the Company's fales, of which,
for their own intereft, the Directors and Proprietors are the
beft judges ; on the other, it is certainly for the advantage
of the Company, that fuch meafures fhould be adopted, as
iliall do away all manner of reafonable complaint in the
purchafers, foreign or domeftic, among whom the confump-
tion and diffufion of Eaft-India imports to Britain depend.
Leaving then the fales with the Directors alone, as at pre-
fent, it is fuggefled, that it be recommended them to make,
from time to time, fuch regulations for extending the be-
nefits of their fales to the individual, the retailer, and the
* re-exporter,

AND TRADE IN THE EAST INDIES. 589

re-expoiter, as may tend to remove complaints upon this chap, ii;
fubjc6t, and that thcfc regulations be communicated to the
Commiflioncrs for the affairs of India.

Such feems to be the plan, upon taking a general view of Refuitofthe
all the circumftances, which appears to be calculated for commercial'*
maintaining and invigorating the trade of Great Britain in *>^*^'"'
the Eaft-Indies, in connexion with the political arrange-
ments required for our dominions in Hindooftan and its
dependencies, during the propofed prolongation of the
Company's term.

Part II. 4 F a

HISTORICAL VIEW

OF PLANS,

FOR THE GOVERNMENT AND TRADE OF

BRITISH INDIA, &c.

CHAP III.

IDEA OF THE DOMESTIC ADMINISTRATON, WHICH, IN CO^
INCIDENCE WITH THE PRECEDING PLANS OF FOREIGN
GOVERNMENT, AND OF EAST-INDIA TRADE, APPEARS TO
BE PRACTICABLE AND EXPEDIENT FOR RENDERING THE
BRITISH PROVINCES IN ASIA AND TRADE TO THE EAST-
INDIES MORE EFFICIENT"' BRANCHES OF THE EMPIRE, AND
OF ITS RESOURCES.

CONTENTS. .

^he Relation cf the foreign Dependencies of an ahfAute Govern'
ment, difficult to be maintained. — the Relation of foreign
Dependencies to a free Government^ a perpetual Subject of
Part II. political

591 OF THE C R I T I S H G O V E R. N M E N T

political Jealcufy. — The prefent Syjlem of Adin'inlfiration of
Indian Affairs modified and regulated, has ell the Advantages
of JLxperieJice in its Favor, and none of the Dangers incident to
untried Theories. — Recapitulation of th". Principles "which re-
quire, that this Syfcem ffould he continued. — The D'ineflic
Governmetit of Indian Afairs divided into two BrancheSt
that of the Courts of DireBors and Proprietors, and that
of the Indian CommiJJioners. — Sketch of the Confliiution
of the Courts of Directors and Proprietors. — Manner in which
the Bufinefs of the Diredlors is portioned out among regular
orfanding Committees. — Fir (I Clafs of the regular or fianding
Committees. — Second Clafs of regular or fianding Committees. —
Third Clafs of regular or fianding Committees. — Improvements
tvhich have been fuggefied on the Confi itution of thejc regular
Conifniitees, by the Directors. — Origin and Efiablifimient of the
Secret Committee,- — of the Committee of Secrefy. — ift. ^uggefiion^
refpeSls the Capital Stock, and the ^Salification to vote, and to
be ele^led into the DireStion. — zd. Suggcfiion, refpeSts the Court
of Proprietors. — ^d. Suggefiion, rej feels the Court o/ Directors .
—4th. Suggefiion, re/pe^s the Powers of the DireBors to appoint
Committees. - ^th. Suggefiion, refpecls the executive Powers €n~
trufied to the Secret Committee. — bth. Suggefiion refpedls the
Appointment of Writers by the Dirediors, and the Line oj Promo-
tion in the Civil Department — '^th. Suggefiion, rejpects the
Appointment of Cadets. — S/A. Suggefiion, rejpects the Manage*-
inent of the Trade. — Confiitution of the Board of Commiffioners
for the Affairs of India. — Circumfiances which led to the efla-
blifimient of it. — \fi. Suggefiion, refpects the Confiitution of the
Board. — id. Suggefiion^ reflects tl:dr Powers. — ^d. Sugge/lion,

refpects

AND TRADE IN THE EAST INDIES.

refpects the Bu/i?iefs of the Board. — /\th. Suggejlion, refpecis the
Powers of the ConuniJJloiiers and Directors in for mhig Plans for
the Improvement of Indian Jffairs. — Refult of thefe Plans.

S'il

X H E engrafting a diflant and dependent territory, upon chap. hi.
an ablblute monarchy, is only adding another degree of * "~~^
power to a body, the ftrength of which encreafes with of the foreign
its magnitude. The difficulty, in this cafe, is to find the ofSfoulc
means of preferving the allegiance of the officer, to whom f^a^'^l'"'^"!'
this fliare of power is to be delegated. The temptations maintained.
which a fituation, remote from the feat of empire, afford
him, of afferting and eftabalifliing his independence, have
frequently been found to be irrefiftible. Aflailed by them
he betrays the truft repofed in his allegiance, and yields to
them in proportion as the fpirit of a government becomes
defpotic. Thefe circumftances feduced from their duty the
Proconfuls of the provinces of Imperial Rome, and they
made rebels of the Mogul Omrahs who were Governors
in the diftant Soubahs. Both oppreflcd the fubjedls and
both amafled the wealth with which they were firft to hire
followers, and next to dethrone their mafters. The one pre-
pared the empire of the Weft for the inroads of the Goths, the
other that of the Eaft for the Perfian, and Afghan fpoilers.

In monarchies of a defined charadler, allegiance is more
pofitive in its nature, and the relation of the diftant ter-
ritory to the fovereignty more fixed. While the French

Part II. monarchy

594 OF THE BRITISH GOVERNMENT

(HAP. in. monarchy was in its vigor, a fcnfe of honour di61ated fide-
lity in the Governors of" its foreign fettlcments, and " a
" proud fubmiflion" to its monarch, infpired a zeal in
its officers for the gloty of their country. M. Duplcix,
■with all the vanity ^nd levity of his nation, fought only
to give to France an empire in Afia, that fhe might curb
the trade of Britain in Europe ; with the example of the
Omrahs before him, he dreamt not of imitating their
rebellion. The allegiance of the fubjecl, in this cafe, was
as honorable, as it was ultimat ely unrewaided. Even the
mifcondu6l of his fucceflbrs, which lolt to France that
prize which the bold defign of Dupleix had grafped at, re-
mains a proof of the facility, with which the fpirit of the
monarchy would have enabled France to have retained, had
it acquired an Afiatic empire.

ThfiTiation In governments, agahi, which have a free defined con-
otf.Hfigndc- ftitution, like Great Britain, the difficulty of prefcrviuir the

pendencies to ' J l in

a free go- relation between diftant provinces and the fovercgnty anfes

icinnK nt, a .

prrpeiuai folely ffoui the political arrangements required to main-

liiicli jcu-^°' tain them. From the nature of the Britifh conftitution

iou:y. ^^|g j-^|a.tion mull invariably be a fubjedt of political jealoufy.

Should the officer, to a\ hom the power is delegated, on the

one hand, be at the command of the executive power, then the

legiflativc power might apprehend, that he could become

an inftrument fitted to abridge the privileges of the fubje^t.

Should the fame officer be entirely in the nomination, and

under the controul of the Legiflature, then the executive

Power might be deprefTed below its conllitutional chara(5lcr,

, and.

AND TRADE TO THE EAST INDIES.

595

and, in the event of a war, could not be exerted with the chap. hi.

energy or promptitude neceflary for the fafety of the State.

It is a domeftic government between thefe two extremes,

in delegating power, which points out the fyftem required

for Britilh India. It mufl: give to the Governors abroad,

the authority required to preferve a diflant poffeflion,

and yet it mud limit them in the excrcife of it, by the

reftraint of the approbation or difapprobation of the

Legiflature. A fyftem of this kind cannot arife from theory

alone, for though the theory might be perfecl in defcrip- •

tion, it would be without the experiments which fit it

for pra6tice, or that could reconcile it to the progrcffive

a6tual ftate of affairs.

The prefent domeftic fyftem of Indian government will
fully illuftrate thefe principles. At firft view it may
appear extravagant, that a Company of Merchants either
ought to be entrufted with the adminiftration of ex-
tenfive provinces, or that they could have exercifed
this privilege, {o as to have prcfervcd them to their
country. It muft appear not lefs extravagant, when the con-
troul of this power was entrufted to the executive govern-
ment, under a refponfibility to Parliament, that the Com-
miflioners for the affairs of India fhould have been clogged
in their operations, by the interferences of a commercial
body, conftituted upon fo vague a principle, as the pur-
chafe of a fhare of proprietary ftock. Events, however,
have fhewn, that thefe apparent incongruities in the do-
meftic government of our Afiatic poflefTions have, in fadt,

Part II. 4 G been

The prefent
fylicm of ad.
miniftration
of Indian af-
fair;:, modi-
fied b\' new
regulations,
has all the
advantages
oi experience
in its favor,
and none ot
the dangers
incident to
untried the-
ories.

596 OF THE BRITISH GOVERNMENT

CHAP. iiL \)Qcn the fource of their profperity. The Company, thougji
their conquefts were unexpected, had acquired the habits
of- adminiftering the government of them, in connexion ,
with the trade which was to bring home the revenues for
the benefit of the Proprietors and of the i ublic at large*
Allowing for all the errors which indi\iduals among the
Directors may be fuppofed to have committed, ftill the
Court was acquainted ^\ ith the nature of our Afiatic poflef-
fions and trade, and when placed under the controul of the
executive power and of Parliament, has been diftinguilhed
by a beneficial management of both. The India Conimif-
fioners mufl, at fiiit, have been comparatively flrangers to
the events which could guide them, in the adminiftration of
Indian politics aifd finance, and more particularly fo, to the
exchanges required by the fpirit of the trade which brought
the furplus revenues to be realized in Britain. Without
therefore the opportunities to draw knowledge from the
Dire6lors, the moft enlarged and liberal principles of go-
vernment might not have been applicable to the political
fituation of India, and the fmeit theory of commercial
ccconomy, might not have fuited the a6lual ilage of trade
in which the Company were proceeding. If, on the
one hand, without the knowledge of the geneial interefts
of the empire, the Direclors might have involved the Com-
pany and the nation in political evils ; on the other, with-
out the information which the Directors could give, on the
relation which the trade bore to the revenues, adminiftra-
tion could not have brought the Indian interefts of the
nation to the ftatc in which we happily fmd them. It

will

AND TRADE IN THE EAST INDIES. 597

will be allowed, that the Commiffioners for the affairs chap, hi

of India may have often been obftru6led by the remonftran-

ces of the Dire6lors, but this circumftance has rendered th

orders of this Board more coincident with the political fitua-

tion of the Eaft, and more beneficial to the Company ;

and it will be admitted, that the Direftbrs may have had

their commercial enterprises modified by a neceffary caution

in the executive power. Thefe circumftances, however,

have been the fource of profperity to the Company and

to the nation. To this mixed fyflem then, of admini-

flration, combining in it the experience of the Company

in trade and in Indian affairs, and the knowledge and

exertion of the executive power, ftimulated by their re-

fponfibility to Parliament, we muft afcribe tlie beneficial

arrangements which have been introduced into our foreign

pofftffions in Afia, and the plans which have been devifed,

at home, for maintaining and invigorating the trade to the

Eaft-Indies. The conclufion is neceffary, that, in coincidence

with the preceding fyftems of foreign government and of

trade, it will be more wife to continue the prefent fyftem of

domeftic Indian government, founded upon the bafis of old

and ellabliflied pra6lice, than to adopt any plaufible theory,

merely for the fame of a new or fplendid experiment.

In continuing the fyffcm of domeftic government on
its prefent bafis, with luch alterations and modifications as
the enlarged limits of the Britilh Indian empire require, and

Part II. 4 G 2 the

598

OF THE BRITISH GOVERNMENT

CHAP. III. the improved ftate of the Biitifli navigation and trade may
lugged, the Public will loie none of the prel'ent advantages
which it pofleirts, and yet can fuperadd to them luch im-
provements, as leem calculated tu render the Afiatic concerns
of Britain more diffufed and produ6live. The Proprietors
and the Directors will not loie any of the privileges which
experience has ihewn to be requifite for the profpenty of
their affairs, and the Public will retain in its view thofe
checks upon the executive power in the adminiflration of
Indian affairs, which at once are the offspring and the
nurle of the conflitution.

Recapitula-
tion of the
principles
which re-
quire that
tiiiifyftcm
Jliouid be
continued.

Before bringing forward an Idea of the fpecies of domeflic
adminiflration, which, in coincidence with the preceding
plans of foreign government and of Eafl-India trade, appears
to be practicable and expedient for rendering the Britilh
provinces and trade to the Eaft-Indies beneficial to the
empire and one of its refources, we mufl: flightly recur to
the principles upon which it has appeared, that a I'yftem for
Indian affairs mufl proceed.

We have found that the Lcgiflaturc, after the expiration
of the prefent charter of the Eaft- India Company, has a
right to diipofe of the Indian provinces and trade to the Eaft-
Indies, in the manner which it ihall deem raoft advan-
tageous to the Public interefl, but that the Company, which
will remain a body corporate, entitled to trade to die Eaft-
Indies, upon a joint ftock, muit be left in a fituation to
difcharge all its juft debts, and upon the fuppofition of its

exclufive

AND TRADE IN THE EAST INDIES.

599

exclufive privileges being taken from it, have the fair value chap, iii .
of its foreign property and capital flock ; thar the govern-
ment abroad muft be fuited to the characters of our Indian
fubje6ts, in the political, financial and military powers re-
quired to adminifler it with effed : that the exclufive trade
to China muft be continued \\ith the prefent Eaft -India
Company, and that the connexion between India and Clxina
ought to be improved, as the beft means by which the reve-
nues can be realized in Britain. If thefe are refults from
the hiflory of India and of the trade to the Eaft-Indies ; and
if it fliall be deemed expedient to renew the Company's
charter, as the mofl certain means of preferving and invi-
gorating the public intercfts, the prefent divifion of domeftic
government between the Company and the executive power
muft remain, but with fuch modifications and improvements
as ihall be calculated to render the adminiflration of the one
as beneficial to the Proprietors as pofTible, and of the other as
refponfible to the Public, as the conflitution requires.

In giving an idea of the domeftic government for The domeftic
our Indian affairs, we fhall take advantage of the divifions onnd'ia"''af-
on this fubicct which the prefent plan of regulation affords .*''" '^'^'^'e'l

rrLriin-r * into two bran-

and treat firft of the domeftic fyftem for the Dire6tors and cius, thatof
Proprietors, and next of that which it may be expedient to and iVopriT-*
continue in the executive power. After we have viewed the of'the "ind^^'
progrefTive afpe6ts of both, we may then fubmit fuggeftions Commif-
for the future arrangement of each.

Part II. I. The

tors.

600 OF THE BP. ITISII GOVERNMENT

CHAP, iii^ j_ 'j-]ic union of the proprietary flock of the Com-
Skctchotthe panv, it not the principle upon which their commercial and
ot the Courts pohtical exutence began, loon became that upon which it
" ui I'r'ouac. I'cftet-l. Every thing, which events in the trade and in the
acquifition of territory has given them, has been held as
acceflbrics to this original bond. The Proprietors fince
the firfl: inflitution of the London and union of it with,
the Englifli Company, have enjoyed the privilege of
affembling at ftated times to give their voices upon all
matters relating to the Company's affairs- The ordinary
admiiiiflration has been vefled in twenty-four Directors. In
feledting them from among the Proprietors by ballot, the
titles to vote and to be clc>5ted a Dire6lor have varied at
different times. Every Proprietor, under the prcfent regu-
lations, poffeffed of ^^-500 ftock, may give his advice and
vote by holding up of hands ; but to vote by ballot requires
^.1,000 ftock. ;^. 3,000 entities to two votes, jr.6,ooo to
three votes, and jT. 10,000 to four votes, which is the greateft
number that any Proprietor is allowed to poflefs*, A Pro-
prietor muft be poffelfcd of his ftock for tw^elve months be-
fore he can give his vote by ballot. This check was either
devifed from the opinion, that time is required to render a
Proprietor a judge of his own interefts, or to prevent
Proprietors from diftributing their capital among their de-
pendents in fuch a way as to acquire an undue influence.

* See Short Hiftory of the Eaft-India Company, (1793) page 2ft When a Pro-
prietor votes by ballot, he t.tkes an oath, that the property is his own, and not held
by him in truft for another,

A Director

AND TRADE IN THE EAST INDIES. 6oi

A Director, at the prcfent time, mufl: be poffefled of CHAP. iii.
jT. 2,000 flock to entitle him to be elected. The ele<5tion
is made at a fpecified period of , the year (the mcmth
of April), and the votes are given by ballot. Upon
the prmciplc that thole who have held the Direction, have,
from their fituation, Lad the beft opportunity of knowing
the Proprietors who are qualified tofucceed them, a " Houl'e
Lift" is handed about to the Proprietors for their adoption,
leaving them to alter the names acccrding as their feelings
or judgment refpecting their own intereft may prelcribe.

The bufinefs of the Court of Dirc6lors has been divided Mannerin
among a certain number of Committees, of which the buiincisof
Chairman and the Deputy-Chairman are always members, ^^^ i^'ieftors

i •' ■> ' IS portioned

viz. the Committees of Correfpondence, of Law Suits, for the out among

— rc^u lixr or

Military Fund, ofTreafury, of Warehoufes, of Accounts, of ftanding
Buying, oftheHoufe, of Shipping, of Government Troops °'"'"'^'"'-
and Stores, of -Private Trade, and for Preventing the Growth
of Private Trade ; but the decifions of thefe feveral Commit-
tees arc ful)je6t to the revifion and confirmation of the
Court.

The firft clafs comprehends the Committees of Corrcf- FLftdaf»of
pondence, of Law Suits, of the Military Fund, and of £3'''"°^

Treafury. Committees,

The bufinefs afiigned to the Committee of Corref-
pondence, is by much the moft extenfive in the whole
of the Company's adminiftration. This Committee has

Part II. to

Sol of the BRITISH government

CHAP. III. to examine the advices from India, and to prepare and
draw np the anhvcrs for the confideration and approba-
tion of the Direvflors. It has to report to the Court, the
number of fliips which may be required for the trade in each
feafon, and the ftations to be affigned to them. It reports
the number of civil and military lervants neceflar}' for keep-
ing up the eftabhlliments abroad, and the apphcations of all
civil and militar}' fervants for leave of abi'ence, or to return
to their refpective ftations. It examines and determines, in
the firft inftance, on the application for redreis of grievances
or pecuniary demands on the Company. It fubm ts all ap-
pointments neceflaiy to the Secretary's, Examiner's and
Auditor's offices, and of thofe officers who manage the
Military Fund and Treafury, to the Court of Directors for
their approbation.

The Committee of Law Suits, as its name imports, diredls
profecutions and defences in all fuits, in which the Company
are parties, and, in general, whatever may become the fubjedl
of litigation at home or in India. In the difcharge of this truft,
this Committee communicates with the other Committees,
in whofe department the fubje6l litigated may originate.
All bills of law charges, in che firft inftance, are examined
by this Committee, and reports made on them to the Court
of Dire6lors.

The Committee for the management of the Military

Fund, which is applicable folcly to the Company's in-

5 valided

AND TRADE IN THE EAST INDIES. 605

validcd officers or foldiers, or to the fupport of the \vl- chap , iii.^
dov> s of fuch as may have fallen or died in jtheir fervicc'
If the Company fhould have no military force in their
a<?tual pay or fervice, in the Eaft-Indies, then the fund
is to be appHed, in the fame manner, to the fupport of
the invahded marine fenants, or of the widows of thefe
fervants ; and if the Company fhould ceafe to employ
troops or a marine, then the fum out of which the fund
originally arofe, reverts to the reprefentatives of the donor.*
The duties of this Committee are, to inveftigatc the cafes of
the invalided officers and foldiers, the claims of the widows of
jthe military fervants who have died in the Company's fer-
vice; and to admit, as penfioners, fuch as come within the
defcription of the deed, eftabliOiing this fund between the
Company and the late Lord Clive.f

The bufmefs affigned to the Committee of Treafury is
divided into different branches ; this, provides, agreeably
to the orders of the court, for the payment of dividends
and of the intereft on bonds ; and it negociates whatever
loans the Company's credit may at any time require. It
purchafes, for exportation, the bullion or foreign coins,

* The fund confiAs of ^f. 62, 833 capital, from Lord Clivc
of 37)70o from Syf-ul-Dowlah
of 24,128 from the contingent fund.
The whole of this Fund carries an intereft of 8 per Cent.

f The deed it dated, 6th April, 1 770.

Part II. 4 H and

6o4 OF THE BRITISH GOVERNMENT

CHAT. III. znd fuperintenJs the weighing and packing of it. It has
the duty of«affixing the Company's feal to the counterparts
of charter-parties, fupra-cargoes, fadors and writers cove-
nants ; to bonds to be given at the Cuftom-houfe ; and, in
general, to whatever bonds or inveftmcnts the court may
authorize. It examines, monthly, or oftencr, the feveral
fpecies of which the balance of cafh confifts. It judges, in
the firft inf^ance, of all apphcations, on the lofs of bonds
or other money tranfa6lions, on the delivery of unregiflered
diamonds, bullion, &c.

SfconJciaf. Thc fccoud clafs comprehcnds the Committees of Ware-
ft!mdfnl"°' houfcs, of Accounts, of Buying, and of the Houfe.

Coinmiitees.

The bufinefs allotted to the Committee of Warehoufes^

is in general, the management and luperintendence of

the Company^s commercial concerns, but particularly of

their imports. To this Committee a variety of branches in

the trade are entrufted ; fuch are, arranging and fuiting

the orders fent abroad to the ftate of the markets at home ;;

the controul of the fervants employed in afcertaining that

the articles procured are of a proper quality, and obtained

at fair rates of coft ; devifing means for conveying thefe

articles to England ; providing for landing them and put-

tino- them in the warehoufes ; arranging thc order of falcs ;

and collciSling and digefting the opinions of experienced

buyers with the objeft of forming proper future provifioii

for the trade.

The

AND TRADE IN THE EAST INDIES. 605

The bufinefs of the Committee of Accounts is very ex- CHAP. iir.
tenfive. I'his Committee has to examine ^\hatcvel• relates
to bills of exchange, and certificates granted in Ind'a or
China, at AUeppo, or in countries in any way conneile.l
with the trade; to compare advices with bills, &c. when
presented for acceptance, and to examine the eflimates and
a6tual accounts of cafh or of ftock formed for the ufe of the
Court of Diredlors, of the Lords of His Majcfly's Trea'ury,
and of Parliament. To this Committee is immedia'ely fab-
fervient the Accountants Office, with its dependencies ; and
the Transfer Office, in which the foreign Letters of At-
torney for the iale and transfer of the Company's flock and
annuities, are inveiligated.

Tire bufinefs allotted to the Committee of Buying, chiefly
relates to the purchafe of certain fpecified articles, of export,
fuch are lead, woollens, &c. This Committee fettles conti atts
with the dyers, appoints tradefmen, gives direftions rcfpc6ting
cloth and long ells, which are brought in their white ftate,
to pafs through the procefs which fits them for the market.
It gives orders for the examination of them ia their white
ftate, and after they are returned from the dyer, and for their
being fine drawn, plained, prcfled, and properly packed for
(hipping. This Committee has fimilar duties rcfpeding the
long ells ; it directs that they be properly dyed, fet, fine
drawn, calendered, prefled, and packed up. It likewife
iflues orders for the different goods being fenton board the
feveral ihips, and audits the tradefmen's accounts.

Part II. 4 H 2 Tut

6o6

OF THE BRITISH GOVERNMENT

CHAP. III.

The bufincfs afTigned to the Committee of the Houfe,
(as the name imphes) is very limited. It iffues orders
for the neceflary repairs and alterations required at the
India-houfe ; it forms regulations for the attendance of the
feveral officers and clerks ; it appoints the inferior fer-
vants of the Houfe, &c. and examines the Secretary's quar-
terly accounts of difburfements, tradefmen's bills, &c.

Third ciafe Tu^ third clafs comprehends the Committees of Shippinc:^

of reijular or t rr fc>»-

itandin? of Government Troops and Stores, of Private Trade, and

for pre\ enting the growth of Private Trade.

To the Committee of Shipping, are affigned feveral per-
fe6lly diftin6l kinds of duties. This Committee has the
purchafe of the Company's exports in general; fuch are
articles for the voyages, (lores for the civil, the marine
and military departments (the articles lead, woollens,
and bullion excepted, with which the Committee of Buy-
ing are cntrufled). It has to fettle terms with the owners
of fre'ghted (hips, and to examine the qualifications of the
commanders and officers. It has the diftribution of the
outward cargoes, fuperintends the raifing and allotting the
recruits to be fent to India ia each fhip, fixing the pafTage
money and provifions for them ; examining and paffing
cadets and affiftant furgeons for the army, and volunteers.
for the marine. It direds in the agreement for and pay-
ment of ieainen's wages, outward and homeward. It fuper-
intends the rcgLiiatiun and allowance of private trade out-
ward >,

AND TRADE IN THE EAST INDIES. 607

ward to the commanders and officers of the Company's CHAP. iii.

fhips. It authorizes indulgences for the export of wine,

&c. to the Company's fervants in India. It ifTues orders

for building, repairing and fitting out the fliips, packets,

&c. of which the Company are proprietors ; and it provides

for the embarkation of His Majefty's troops, when ordered

on fervice in the Eaft- Indies »

To the Committee of Government Troops and Stores,
is affigned the duty of adjufling and liquidating the
accounts with the offices of Government, refpecting the
fupplies for vi6tualling His Majefty's naval and land forces
employed in the Eaft- Indies ; of examining and fettling
the claims of the King's officers on the Company, whe-
ther in their individual or in their public capacity (the
allowances to naval officers, while ferving in the Eaft-
Indies, excepted). That part of the correfpondence, alfo,
which refpecls fuch inftru6tions as may appear neceflary
to be given by the Company to the King's forces icrving
in India, and the drawing up of anfwers to the addreflbs-
of thefe officers, is entrufted. to this Committee.

To the Committee of Private Trade is allotted the duty
of adjufting the accounts of freight of goods carried out
on the Company's chartered ftiips, and of the demorage
payable on their failing from England ; of examining the
commanders on their arrival from their refpe6tive voy-
ages, to afcertain whether they have complied with the.
orders and inftrutflions given them by the Court of Direc-

Part II. t'^rs,

6o8 OF THE BRITISH GOVERNMENT

CHAP. III. tors, and by the Company's fcrvants abroad ; of deter-
mining on the claims of the owners of chartered ihips,
in refpcct to the " earnings" of freight and demorage; ad-
jufting the accftunts, between them and the Company, and
ordering the payments to be made to them ; of regulat-
ing the indulgences in private trade hon.eward ; of com-
paring the accounts of private trade home, with the quan-
tities and fpccies allowed and manifeflcd, in order to
difcover, \\hcther the cftablilhed regulations have been
complied with ; and of confidcring and determining on the
feveral applications ^\hich may be made on private trade,
exceeding the allowances, or not duly manifefted.

To the Commi'tee for preventing the Growth of Private
Tiadc, is affigned the duty of inveftigating and deter-
mining upon luch bufincfs, as may arife in confequence of
the orders and regulations for preventing the allov^ances
pf trade to commanders and officers of the Company's
Ihips, being exceeded. The duties of this Committee are fo
interwoven with thofe of the Committee of Private Trade,
that references have, of late, frequently been made to it,
in which cafe this laft Committee has examined and pafTed
the accounts of the private trade of the commanders, and
in moft calcs, has regulated the indulgences which come
properly under the cognizance of the Committee for pre-
venting the Growth of Private Trade.*

* From a ftatcment of the buGiiefs allortcJ to the feveral clalTes of Committees of
the Court of Diictlors, officially tranlniittcd to the Board of Cominiffioncis for the
Affairs of India.

This

AND TRADE IN THE EAST I N D I E 5. 609

This review of the manner in which the domeftic ad- chap. iii.
miniflration of the Directors is pprtioned out among regular
or (landing Committees, furnifhes a curious and interefling
afpe6f of the progrefs of the Company's affairs, and leads
directly to the improvements which have occurred on the
fubjedt to the Diretfkors themfclves.

Soon after the inftitution of the Board of Commifiioners, improve-
and the introdu6lion of a new arrangement of bufkiefs into hlf^"ebecn"^'*
the foreio;n Prefidencies, fome of the moll intelligent of '""sseftcd on

... - . . . theconlHtu-

the Dire6lors leem to have been of opmion, that it would tion of theCe
be neceflary to new model the whole of their home fyftem mutec's. "^
of adminiftration. The principle upon which all of the
plans, fuggeflcd on this fubje6l, proceeded was, that the
Committees at home lliould correfpond with the depart-
ments abroad. For this purpofe it was propofed, that the
whole of the Committees fliould be reduced to three. To the
firft was to be given the names of the Committee of Infpec-
tion of Civil and Revenue Affairs : To this Committee was
to be affigned the duties of examining all accounts, fuch
were thofe of the expenfes attending the civil government
ef the different perfidencies in India, thoie of the Company's-
revenues and- charges, thofe of the collection and realiza-
tion of them in England. A Committee, with the like
powers, and under the fame name, it was fuggcfted, might
be cftablilhed at each of the prefidencies of Bengal, Fort
Saint George, and Bombay, the duties of which fliould be
Part II. rcftridcd

6:o OF THE BRITISH GOVERN MENT

riMP. ifi. icilricted to the civil and revenue department, and to the
correspondence with this Home Committee.

To the fecond it M-as propofed to give the name of the
Committee of hifpe<5tion for Mihtary Affairs, with the du-
ties of attending to the Mihtary Eftablilhment, viz. to the
number of troops, Native and European, required in each
fcttlement, to the returns of the eft'eflive and non-effeclive
branches 4)t' the army, whether in garrifon or in the field ;
to the military charges in general, whether of troops, for-
tifications, or hofpitals ; and to the correlpondence with
a Committee of the fame name, at each of the three fettle-
ments of Bengal, Madras, and Bombay.

To the third Committee, it was propofed, to give the
name of the Committee of Infpeclion for Commercial
Affairs, with the duties of fuperintending the Company's
Trade in England, as Avell as in hidia, keeping an account
of the quality and charges of the articles for the Europe in-
veftment, the increafe or diminution of the feveral articles
which compo'e it, whether in India or in China, the tx-
penfes of tranfportation of the goods to England, the fales
at home and abroad, the improvement of mrnufattures in
India, the purchafe and management of the exports from
England to all countries within the Company's limits, and
the correfpondence with a Committee of the fame name, at
each prefidency.

These

AND TRADE IN THE EAST INDIES. 6ii

These three Committees at home and abroad, it was chap. ii.
propofed, fhould confift of five members, three of whom
fbould be a quorum, to meet once a week, have a Secretary
to keep minutes, as records, to have the power of inflituting
inveftigations into the a6lual ilate of the Company's interefts
at home, under the controul of the Dire6lors, and abroad
of inflituting Hke invefligation, in the prefidencies, and
to communicate all proceedings, from time to time, to the
Direftors ; the minutes of thefe Committees, at home and
abroad, were to lay thirty days before their immediate fupe-
riors for confidcration and approbation, but the correfpon-
dence to be carried on between the foreign and the home
Committees of thefe fpecificd defcriptions *.

When this plan came to be deliberated on, a fccond
was offered, as an improvement on it. In this it was
propofed, that inflead of abolilliing the old Committees,
the number of Dire6lors compofing them fhould be dimi-
nifhed, and the Committees formed into clafTes, among
which the bufmefs, at prefent, entrufled to the ftanding
Committees fliould be divided ; this, it was thought, would
be more coincident with the encreafed nature of the Com-
pany's concerns t«

These plans had fcarcely been compared, when it was
propofed to abolifli the fubfifling arrangement of Com-
mittees and to introduce the following:

* This plan is dated the 23d March, 1785.
•j- This plan is dated the 5th of April, 1785.

Part II. 4 1 ift.APo-

6'2

OF THE BRITISH GOVERNMENT

CHAP. III. I ft. A Political Committee, to confift of fix Directors,
and to be fubdivided into two departments, one for Bengal,
and one for Fort Saint George and Bombay. 2d. A Mili-
litary Committee to confift of four Dire6lors. 3d. A Com-
mittee of Shipping to confift of five. 4th. A Commercial
Committee to confift of feven. The fame duties were to be
afiigned to the three laft, as in the preceding plan, but
the duties of the Political Committee were upon this occa-
fion more fully defcribed, viz. Be fides the management of
whatever related to the civil government, revenues, and
courts of juftice, it was thought that to this Committee
might be entrufted the management of whatever regarded
the Company's proceedings with the native or European
powers connected with each prefidency. The difficulty of
bringing forward any new arrangement in the India-Houfe,
feems to have been fully perceived. Each of the ftanding
Committees have a certain degree of patronage annexed
to them, which they would unwillingly relinquiih. To
remove tliis, it was propofed to divide the patronage among
the Dirc6tors, according to feniority, giving the greateft
portion of it to fuch of them, as were in the fourth year
of their direction, a lefs degree to thofe who were in their
third year, a ftill Icfs to thofe in their fecond, and the
leaft fliare to Dire6tors in their firft year. This meafure,
it was conceived, would call forth profeflional knowledge,
by confining the Directors to the bufinefs for which they
were beft qualified, and yet would aftbrd to each his merited
degree of influence*.

* This plan is dated the mli April, 1785.

Not-

AND TRADE IN THE EAST INDIES. 613

Notwithstanding thefe propofals, which refledt much chap. in.
honor on the capacity and zeal of incl'viduals, the old ar-
rangement has continicd to the prefcnt time, with the
fingle variation of the (landing Commitlecs having been re-
duced to the clafles under which wc have detailed their
conftitution and duties.

When the Company's concerns began to affume the Origin and

J r n. r i r • i r • eltabliflinient

mixed alpects or commerce, and ot revenue lublervient to ot the secret
inveftment, it became difficult to affign to any of the ftand- ^°"^"'""-
ing Committees, either the political interferences Avith the
Indian Princes, of whofe fovereignties their foreign govern-
ments had become lliarers or allies, or to manage the poli-
tical connexion which the Company now neceflarily had
with the executive government. As early as the peace
1748, and while the political ftruggle, between the French
and Englifh on the Coromandel Coafi:, v/as obvioufly the
harbinger of a war, a Secret Committee was appointed, and
began to take an important lead in the Company's domeftic
and foreiirn affairs. We find a reference made to this Com-
mittee, in the proje6l for extirpating the pirate Angria from
the Malabar Coaft*. As this war between England and
France afTumed a more ferious afpeit, the Secret Commitec,
befides its firft character, was cntrufted with the condu(5l
of the Company's military and naval affairs; had the charge
of providing for the fafety of their chartered and trading
fliips, and authority to enter into fuch treaties and alliances

* Minutes of Secret Committee, 2d March, 1754.

Part II, 4 I 2 with

6!4 OF THE BRITISH GOVERNMENT

CHAP. III. with the Indian powers as might be thought rcquifitc for
the prefcrvation and protccliou of the faclories, or the dif-
tricls depending on them*. Thefe powers of the Secret
Committee were renewed and enlarged during the whole
courfe of this wart* extending now not only to the fettle-
TTients on the Peninfula, but to their eftabliiliments making
on the weft coafl of Sumatra, for the purpofe of promoting
commerce in that quarter of the Company's limits X- While
the arms of Britain were making rapid acquifitions, parti-
cularly towards the clofe of this war, the Secret Committee
began to be inverted with more fpecific powers, viz. thofe
of conferring with the King's Miniflers, on the proper and
efFe(5lual plans for feconding the eflbrts of Government, in
reducing the Manillas § ; of foliciting the Admiralty for con-
voys CO the Company's fhips |1, of opening fuch packets, as
might be addreflcd to the Committee only, and communicat-
ing the contents to the Court of Direclors, or not, as they
might deem it prudent that the contents fliould be known ;
andof confulting with miniftry on the meafures foi' fecuring
the Company's polTefTions and privileges of commerce, in the
treaty of peace which now appeared to be approaching**.
To this Secret Committee alfo, upon the fame principle of

* Minute, 14th February, 1755.

f Minutes, 30th July, 1755; '4*^^ April, 1756; 7th April, 1757; Jth April,
J758; 6th April, 1759; 3d April, 1760; and loth April, 1761.

i Minute, 30th November, 1757.

§ Minute, 30th December, 1761. ' || Minute, 8th April, 1762.

** Miautes, agth July, 1761, and aift July, 1762.

fecuring

AND TRADE IN THE EAST INDIES. 615

fecuring to the Company their recent acquifitions, were CHAP. in.
confided the duty of Iblicituig the afliftance of the executive
power, to enable the Company to retain the poflcflion of
Mafulipatam, as ceded by Salibet Jung f. Similar powers
with thefe already referred to, of opening packets which
might be addrefled to them, and of laying fuch parts only
of them before the Court of Diredlors, as it misrht be
thought prudent to divulge, were renewed to this Com-
mittee for feventeen fucceflive years +. During this period,
however, inftances occurred, in which the Dire6tors wiflied
to limit the Scledl Committee, at their feveral prefidencies
in correfponding with the Secret Committee, and to confine
the powers of the Secret Committee itfelf, to matters which
required communications with the King's Minifters§.

As the late general war approached, the powers of the
Secret Committee ^\ere, in a meafure, limited to the
Chairman and Deputy Chairman only||, who were veiled
with the whole executive authority of the Company, that
they might a\ atch over the general fafcty of their dominions
and trade.** From 1778, till the paffing of the regulating
aft 1 784, the bccret Committee alone communicated with
the Kmg's Minifters on the political interefls of the Com-
pany. In the a6t of regulatien 1784, it was declared to be

■{■ Minutes, 22 J September, 1762.

J Minutes for tlic month of April, from 1763 to i78aineUifive.

§ Minutes, 8ih May, 1764. 21ft July, 1769. 28th Nov. 1770.

II Ditto 7th December, 1770.

**' Minutes, 27th March, and gih April, 1778, 23d June, 1779. 31(1 May, 1780^

Part II. a fLxed

6i6 OF THE BRITISH GOVERNMENT

CHAp.iii. ^ fixed part of the domeftic cftabliflimcnt of the Company,
and that it fliould be lawful for the Court of Diiedlors
" from time to time, to appoint a Secret Committee, to
*' confiftof any number of the faid Diredors for the time
*' being, not exceeding three, which Secret Committee
" fliall, from time to time, upon the receipt of any fuch
" fecret orders and inftru6lions concerning the levying of
" war, or making of peace, or treating or negociating ■with
*' any of the native Princes or States of India, from the
*' Commiflioners for the affairs of India, as are herein-
" before mentioned, tranfmit to the refpe6live govern-
•' ments and prefidcncies in India, a duplicate or duplicates
" of fuch orders and inftru6lions, together with orders in
" writing, figncd by them the members of the faid Secret
" Committee, to carry the fame into execution ; and to all
*' fuch orders and inftructions fo tranlmitted, the feveral
" governments and prefidencies in India are hereby required
" to pay the fame obedience as if fuch orders and diredtions
'* had been ifTued and tranfmitted by the Court of Di-
** redlors of the faid United Company."

Of the Com- Almost in name, and in fome degree in bufinefs ap-
«ecy!°^^^* preaching to this Committee, is that of Secrecy. The duties
afhgned to it, are thofe of foliciting the Admiralty, in the
name of the Dire6lor5;, when war is approaching or carrying
on, for convoys to the Company's ihips; of devifing and
taking fuch precautions as this Committee may deem ne-
cefTary for their fafety ; fuch are ordering fignals, opening
all packets that may be addrcfled to them individually, or
3 as

AND TRADE IN THE EAST INDIES. 617

as a Committee, and of laying before the Court, fuch part chap, iii
only of the contents as.it may be prudent to divu'ge.

Such is the domeftic government of the Eaft-India Com-
pany. The queftion with the Legiflature upon this fubjeft
will ofco'.irfe be, whether they will think it neceffary to
confirm the prefent adminiftration of Directors and Com-
mittees, or whether they will veft the Dire6tors and Pro-
prietors with powers, to form one for the Company, fiiited
to the magnitude of their bufmefs, and calculated to render
the home adminifltratioii in unifon with the departments
abroad.

Having thus fketched out the progrefs of the domeflic
government of the Company, the following fuggeftions,
upon renewing their exclufive privilege, are lubmitted to
confideration.

First. It is fuggefted, that the proprietary ftock fhall i^- Sugger-
be encrealed j(,. 1,000,000, upon the prmciple pointed out, the capital
where treating of the financial power, to enable the Com- qualification'^
pany to liquidate their debt, but that the conftitution of the '° h^^^\''f^A
capital ftock, transfers, &c. ihall continue on the prefent into the du
fyftem, fubjedf to the regulation of the Du'cilors, and to
fuch encreafe as i'arliament may judge, fiom time to time,
to be expedient. That the qualification for a Proprietor to
vote fhall continue at ;^. I ocQ capital ftock, and the quali-
fication to be elected a Director at j(". 2000 capital liock,
and that before fuch vote can be given, or fuch elcclioa

Part II. become

6i8 OF THE BRITISH GOVERN iMENT

CHAP. in.
« . '

become legal, the holder fliall have been poflclTed of his
flock for one year ; though each Proprietor of ^T.joo flock
fliould, as at prefent, be entitled, from the time of his
making the ]5urchafe, to give his opinions and advice upon
matters regarding the Company's interefls, all which he may
chufe to bring, or that may be brought before the Court of
Proprietors. That the oath which fpecifies that the flock is
the Proprietor, has been held by him for twelve calendar
months, and not in truft for another, or collufively obtained,
flvall continue to be adminiflercd to the Proprietors and
Directors in its prefent form-
ad. Suggef- Second. It is fusicrefled, that the Courts of Proprietors

tion, rclpefts _ ^° '

the Court of fliali, as at prefent, be held quarterly; and that it fliall
lopiie ors. j.(,j^^jj^ jj^ j-j-^g power of nine Proprietors to apply to the

Court of Direftors, to fummon, on extraordinary occafions,
a meeting of the Proprietors, -the bufmefs to be laid before
them being fpecified to the Court, and exprefTed in the
fummons tranfmitted or publifhed for their meeting.

3d. Suggef- Third. It is fuggefled, that the Court of Dircdlors fhall
t'heVoVrrot" confill, as at prefent, of twenty-four; but that it may be
left to the Proprietors and Directors, with confent of the
controuling power, to diminifli that number, if it fliall
appear that fuch diminution would tend to fimplify and
facilitate the adminiflration of the Company's affairs.

Upon this fubje£l a variety of opinions have, from time to

time, been entertained. On the one hand, it has been thought,

* that

Diredtors.

AND TRADE IN THE EAST INDIES. 6i^

that by le/Tening the number of Directors to twelve or even Citap. iil^
to nine, and by dividinf^ the bufinefs among them, with
poAver to report their proceedings to the Court, a greater
degree of difpatch and refponfibility could beenfured, tliaii
has been experienced when the bufinefs is referred to
Committees. On the other hand, it has been faid, that
the magnitude of the Company's concerns entrufted to the
Committees, affords a fufficient charge to each of the Mem-
bers of them, and that if the great branches of the bufinefs
were entrufted to one or to two Dire6tors only, with the
Chairman and Deputy Chairman, the whole would fooa
pafs into the hands of the officers of the Court, inftead of
going through thofe of the Directors. That thus the
le/Tening the number of the Director?, inflcad of encreafing
the refponfibility, would, in fa6t, introduce an adminiftra-
tion which, from its nature, would render fuch refponfibi-
lity of no avail. A fubje6t of this kind can only be judged,
of from experience; and although, perhaps, fome dimi-
nution might be expedient, it is difficult to fay what that
diminution ought to be. It may be proper, however, that
the Directors, of whatever numbers they may confift, Ihould
have fuch falaries as may be a compenfation to them, for the
time which they give to the dilchargc of their duties to the
Proprietors.

Fourth. It is fuggefted that the bufinefs of the Court Fourth fug-
of Diredlors fhould,as at prefent, be divided among feparate ^^^s'i'iie"^'
Committees; and that this divifion, as well as the portion PT"^'^"^'f'e

' I UirciTors to

of the bufinefs to be allotted to each Committee, may take app">'itCom-
Fart II. 4 k place

620 OF THE BRITISH GOVERNMENT

CHAP, III. place, without any claufe in an a6l of Parliament, and by
an internal regulation of the Court, with the approbation
of the Court of Proprietors.

Upon this fubjedl it may be obferved, that the prefent
plan of Standing Committees does not correfpond wkh the
arrangements introduced in the foreign fettlements, and
that it would fimplify the whole of the adminiftration of
the Court of Directors, if the Committees were formed
upon fuch a plan, that to one might be afligned the duty
of preparing the correfpondence for the foreign Boards of
Council ; to another that for the Military Boards ; to a third
that for the Boards of Trade ; and to a fourth that for the
Boards of Revenue, leaving to each of thefe Committees the
power of forming themfelves into clafles, affigning to each,
particular branches of the bufmcfs, and keeping the minutes
of each as a diftinft record, to be fandtioned by the Directors.

Fifth fuegef. Fifth. It is fuggefted that the political branch of the
tion, refpefts bufmefs, whether resrarding; tranfadions with the native

the executive . , , r ■ r t r , -iro

powersen- Prmccs, or With the lupenors or the lettiements or with racto-
SecretCom- Hcs of European ftates having territories in India, or trade to
mittee. jj^g Eaft-Indies, fhall pafs immediately through the Secret

Committee (confifting of the Chairman and Deputy Chair-
main only) to the Board of Commiflioners for the Affairs
of India; that this Committee iliall form a part of the
domeftic government of the Company, as defined and au-
thorized in the Regulating A6t 1784, but with fuch modi-
fications and under fuch reftri6tions, as fliall pofitively

enfuie

AND TRADE IN THE EAST INDIES. 621

enfure fecrecy in all political matters regarding either the chap. iii.
interefts of the Company or of the Empire ; that is to fay,
that this Committee, inflead of being annually fele6ted
from among the Dire6tors, fliall confift of the Chairman and
Deputy Chairman only, a<5ling as fuch Committee officially ;
that the Chairman and Deputy Chairman lliall imme-
diately after being elected to thefe offices, and as conftituting
the Secret Committee, take the oath of fecrecy to the Court
of Dire6lors ; that they (hall forthwith communicate what-
ever difpatches they may receive from the different pre-
fidencies abroad, to the Commiffioners for the Affairs of
India ; that, upon the receipt of orders or inftru6tions from
the Board, upon the political interefts of the Company or of
the ftate, (viz. levying of war or making of peace, treating or
negotiating with any of the native ftates of India) they Ihall
fend a tranfcript of them figned, and afterwards a duplicate
or duplicates, in writing, to the refpe6tive governments and
prefidencies abroad, enjoining them to carry fuch orders into
immediate effe6l; that the Prefidents and Councils, in India,
and fuperiors of refidencies or fa6lories, fhall pay the
fame obedience to the orders of the Secret Committee, as if
thefe orders had been tranfmitted to them by the Court of
Dire6lors ; that the orders fo given and fent to the Secret
Committee by the Commiffioners for the Affairs of India,
Ihall be tranfmitted to the refpeftive prefidencies without
delay, in the manner the Committee fhall deem the molt
fafe and expeditious, within a time to be fpecified by the
Board ; that this Committee fliall communicate only fuch
parts oT the orders authorized by the India Board to the
Part II.' 4 K 2 Court

622 OF THE BRrXISH GOVERNMENT

orAP.iii. Court of Dire£lors, as may be pointed out and allowed b}"-
' ' the Board, for the purpofe of giving confiftency to the

whole of the political and commercial tranfactions of the

Company.

Upon this branch of the domeftic government of Indian
affairs, the opinions of thofe who are mofl converfant with
them have differed more widely, than upon any other fub-
ject.

On the one hand it has been faid, it is pofliblc, notwlth-
flanding the precautions taken by the Board and by the
Committee, that the meafures of government may tran-^
fpire, from their paffing through different hands ; that fuch
difcoveries would obvioufly be prejudicial to the interefts
of the Company and of the State ; that, therefore, it would
be for the general interefts, if the communications upon
all matters of a political kind, were to be made dire6l
between the executive government and the prcfidencies
abroad ; and that this change would not be contrary to the
fpirit of the a6t 1784, by which the Secret Committee
receive the orders of the Commiflioners, who are alone
refponfiblc for thefe orders. In fupport of this opi-
nion, it has been argued, that if the appointment of
the Prefidents and Councils, as welt as the power of re-
calling thtm, had been in the King, the refponfibility
of the executive govermnent would have been more de-
fined J that this would have been no innovation upon the

prefent

AND TRADE IN THE EAST INDIES. fej

prefent mode of admin iflering Indian affairs, in fubftance, CWAp. iil
but only in form, ftncc the fundlions of the Secret Com-
mittee have not, under the prefent fyftem, been dehbera-
tive but official ; that the refponlibility of the Commiffioners
would, by this truft, become diredl and guarded ; di-
re£l, beciiure it would bring the difpatches from India im-
mediately to the Board, or carry difpatches from it to the
Governors, Councils and Commanders who are to execute
theie orders ; guarded, becaufe it would' prevent the orders
pafling through a number of hands at the India Houfe and
at Whitehall, where, it is poflible, the obje6ts of a difpatcb
might be difcovered by a foreign rival of the Company or of
the nation.

Ok the other hand, it has been thought, upon a review
of the relation fubfifting between the commerce, the re-
venues, and the i^olitical interefts of the Company, thaS
the continuance of the Secret Committee is required to give
confillency to the whole of the Company's tranfa6lions.
If the management of the commerce and of the revenues
is to be left with the Diredors, and yet the bufmefs of
the Secret Committee to be wholly in the executive power,,
the plans which the Directors might adopt for trade, might
not accord with the political or coercive racafures deemed
expedient by the State, and thus a difcord?mcy in the ad-
miniftration of Indian affairs, might arife, at a time when
a41 the parts of them ought to meet, in carrying into cffeil
the inftru£lions given for the prefervation or profpcrity of

Part IL thjc

ei4

OF THE BRITISH GOVERNMENT

CHAP. iir. the Indian provinces and trade. Bcfides, that the conti-
nuance of the Secret Committee is an indulgence due to
the Proprietors, whole confidence in the manai^ement of
their interefts mufl, in the firft inftance, be placed in their
own Dircdors ; and, in the next, encreafed by the check
eftablilhed over their proceedings by a refponfible execu-
tive power.

On a fubjedl of this delicate nature, where the interefts
of the Public and the Company hold the balance in a kind
of equipoize, for or againfl: the continuance of the Secret
Committee, it is for the wifdom of Parliament to decide, by
examining how far the propofition fubmitted to them
feems to be calculated to remove the obje6lions againft the
Secret Committee ; and yet to continue the prefcnt fyftem
without the inconveniences which have been apprehended
from totally disjoining the political from the commercial ad-
miniftration of Indian affairs.

Sixth fuggef-
tion, refpcdts
the appoint-
ment of wri-
ters by the
Diredors,
and the line
of promotion
in the Civil
department.

Sixth. It has, when treating of the foreign governments,
been fuggefted, that the writers for the different fet'dements
ihall remain Iblely in the appointment of the Court of
Directors. It is here only, as a part of the domeftic go-
vernment, farther to be fuggefted, that the prefcnt re-
ftriclions fhould continue ; that is, the perfons named
muft have attained the age of i6, and not have paffed that
of 22 ; that upon their arrival in India, they {hall be
entitled only to a promotion that is gradual ; that is, the
writers are to be employed in fubordinate duties only, to

♦ have

AND TRADE IN THE EAST INDIES.

625

have a p^pgrcflive fervice before they are admitted to be CHAP, in.
fadors ; inferior offices of truft to be given to fatlors, thofe
of greater truft and extent to be affigned to junior mer-
chants of a fpecified number of years ftanding in the fervice ;
the general departments of the bufinefs to be under the
fuperintendence of the fenior merchant, alfo of a fpecified
number of years ftanding in the fervice ; and the Boards,
under which the management of the whole of the Com-
pany's interefts are placed, to be filled up according to
this line of promotion, by civil fervants of a fpecified
rank. It may be left, however, to the Governors and
Councils to fele6l thofe of this defcription whom they
may think entitled to a feat at any of the Boards, ac-
cording as their fervices may be thought important or be-
neficial. The refponfibility thus of the Governors and Coun-
cils, in all civil matters, to the Dire6tors afting in con-
cert with the executive power, will be pofitive ; the mo-
tives to exertion in the civil fervice, judged of and rewarded
by thofe on the fpot who can beft eftimate probity and
merit, and the patronage left with the Company, in every
refpeft, in which the exercife of it does not interfere with
the general fafety of the empire.

Seventh. It is propofed, that the cadets for the mlli- Seventh fug-

r c ' geltion, ic-

tary eftablilhments in India, fhall be left folcly with the fpefts the ap-
Diredors. In treating of the military power in India, cadets!^"
the line of promotion has already been pointed out, as
well as the rewards due to men, who are to ftruggle with
Part II. an

gi^ OF THE BRITISH GOVERNMENT

CHAP. ITT. Kn nnfavorable climate, and to devcte their lives to duties
^vhich remove them at a dlftancc from therr country.

EiRiithfur- Eighth. It is propofed, that the whole fuperintendcncc
fpeasthcma- and management of whatever regards the commerce of the
thfua^'e. "^ Company, fnall remain as at pre'ent with the Direaors ; that
they ihall have the power, agreeably to the preceding plan for
the Committees, to fubdivide the bufinefs, whether regard-
ing the {hipping, the charges of them, their officers and
the allowances to thefe officers, the purchafe of exports, the
inftriidiors for the fa!e of them at the foreign markets, the
provifion or purchafe of imports, the fuperintendcncc of
falcs, Sec. In the exerc.le of this power, however, it may
be proper, that the Court of Directors, in the name of the
Eaft-India Company, do within the firft 14 fitting days after
the 31(1 of March, in each year, continue to lay before
Parliament, an account niade up, according to the latcfl
advices, of the annual produce of the revenues of the British
territories in India, difi:inguifliing thefe accounts under the
fcparate heads of the feveral prefidencies or fettlements
abroad, the amount of lales of goods and ftorcs within
the limits of their exclufive trade, and, in general, the
diffiurfcments made in the countries within their li-
mits, diflinguiihed in the fame manner under the titles
of the different prefidencies, or refidencles and factories ;
that, along with thefe, an account fhould be pro-
duced of the amount of their debts abroad, with
the rates of intcreft they refpci^ively carry, the annual
3 amount

AND TRADE IN THE EAST INDIES. 627

amount of the intercft payable on their debts, at each pre- chap, hi,
fidency or principal fettlement, the flate of cafh remaining
in their treafuries in each prefidency, a lift of their fevcral
eftablifhments abroad, with the falaries or allowances pay-
able to their fervants, and, in general, accounts exhibit-
ing the ftate of their financial and commercial intercfts.

II. In conne6lion with the conftitution of the Court Conftitution
of Dire6lors and Proprietors, is that of the Board of Com- otCommiV-
miflioners for the fuperintendence and controul of the aft^hs^on^'''
affairs of India, eftabliflied by the regulating act of 1784. ^'a-
It remains, therefore, to make a reference to the conftitu-
tion of this branch of the home government, as defcribed
in a preceding part of this work,* and to fuggeft fuch altera-
tions and improvements as may be coincident with thofe
required in the adminiftration of the Court of Dire6lors.

The principle upon which the Board of CommifTioners circumfta -
was eftablilhcd, was that of eivino- to Government the *^^' "■''''^'' '='■1

.^ ° . totlieclta-

fuperintendencc of Indian affairs, even while the exifting Midmicnt of
charter of the Company entitled the Dire6lors to fliare in it.
It is to be recolle6ted, in the firft place, that for many years
the Diredors exercifed, under a variety of Charters and Adfs
of Parliament, the executive power in the fettlements of Great
Britain in the Eaft. It was only upon difficult occafions
where the Company required aids from Government, or
where interferences with the European nations, having

* See Part I. Chap. II. page lOg & feq.

Part II. 4 L interefts

It.

62S OF THE BRITISH GOVERNMENT

CHAP. III. intercfts in the Eaft, required the interpofition of the Srate,
that the King's Minifters or Pailiament took an active part
in the forcir^n tranl actions of the Company; as in the in-
itances, where the conquers of the French, on the Coro-
mandcl coaft, called for the aid of Government to fecond
the efforts of the Company's arms, and where the incffeclual
expeditions to obtain fcttkments and a trade on the Coafts
of the Gulf of Perfia, required a fulpenfiun of the Com-
pany's powers, and the appointment of an officer, by His
Majeffy, to retrieve and to rc-eftablilli them. It is not im-
probable, indeed, that had not the Company made con-
qucfts in the center and on the Eaft of India, but remained
only fuperiors of fadories, the original executive powers
delegated to the Company, would have continued in their
Directors. After, however, the conqucft of provinces,
after the abufe of power, by the foreign fervants of the
Company, in the different Prcfidencies, had called for the
attention of Parliament, and after the report of its Com-
mittees, had unfolded the actual fituation of Indian affaiisj
it was found neccffary to eflablilh a controuling power, with
more defined authority, than the general one formerly exer-
cifed by the Secretary of Sta.te. The authority vefted in
this new branch of the executive government having already
been defcribed, the following fuggeflions are thrown out for
rendering it more efficient, and connecting its power with
that of the Court of Directors, in fuch a manner as may
fully conciliate the commercial with the political interefts of
Great Britain in the Eaft.

e First.

AND TRADE IN THE EAST INDIES. 629

First. It is fuggcfted, that upon the bafis of the acb CHAP. iir.
1784, the controuling powers of the Commiffioneis for the Firftfusgef-
afl^hirs of India, fliall be continued ; that the Board fliall the coniiitu-
confift of the two Secretaries of State and the Chancellor of B""rdof^'^
the Exchequer, tofiether with three or four other Members, Commii-

^ . , . lioiicis.

whom His Majclly may think fit to appoint, by a commif-
fion under the Great Seal ; that they iliall, as at prefent, be
denominated the CommifTioners for Affairs of India, and
hold their appointments during His Majcily's pleafure ; that
thefe Commiffioners ihall be veiled with authority to direct
and controul all a6ls, operations and concerns, which relate
to the civil and military governments, or ndminiflration of
the revenues of the Britifli poficffions in India, lubject,
however, to fuch regulations and reftridlions as Parliament
may think it expedient to provide for. '

Second. It is fuggcfled, that the firfl: named Commif- Second fuj;:-
fioner of the Board iTiall be Prcfident, and be vefted with ipeaTt'iicu"
the executive powers of Government in all matters refpect- P°"''^''-
ing India : that the Prefident and two of the Commif-
fioners fhall form a Board ; that he fliall be authorized to
fummon the Commiffioners to meet as matters of importance
may require ; that in his abfcnce, the next named perfon in
the commiffion ihall be vefted with the powers of the Pre-
fident ; and that as the Prcfident will, from the nature of
his fituation, be one of His Majefty's confidential fervants,
to him ought properly to belong that intercourfe between
Government and the King's fervants abroad, now exercifcd
by the Secretary of State for the home department.
Part II. 4 L 3 Third.

6'o OF THE BRITISH GOVERNMENT

CHAP. III. Third. It is fuggeflcd, that the powers veftcd in the
ThirdAipeef- Commiflloners for affairs of India, by the a6t 1784, of ap-
th"' bu'ifinfrs * po'nting and removing the officers of the Board, fhall con-
of the Board, tinue in the Prefulcnt and CommifTioners ; that the princi-
cipal Secretary fhall not, from holding fuch office, be dif-
qualified, any more than the Commiffioncrs are, from hav-
ing a feat in Parliament.

Upon this particular branch of the fubjed, without enter-
ing into an enumeration of the magnitude of the bufmefs
entrufted, by the Board, to its officers ; it will be fufficient
to obferve, that thcfe officers have (under the orders of
the Board) the charge of all communications with the
Court of Directors, whether regarding the domeflic admi-
nillration or foreign governments of India affairs ; that they
have to preferve and arrange the records of the Board, as
archives of the State, to which the other branches of the
executive power may refort ; that they have to make up
reports on all cafes of law regarding the inteiefts of the Com-
pany's fcrvants or the Public, as conncdled with the Com-
pany ; that they have to prepare ftatements of the Company's
trade, revenues, debts, &c. to be laid before Parliament ;
and that they have to engrofs into the minutes of the Board
all difpatches received from or fent to India, and to convey
the communications of the Board to the Court of D.rectors.

^ofti^on ^rfi^ Fourth. It is propofcd, in order more fully to conne6t
peftsthe ^■\^Q political and commercial branches, that the Board

powers ot the '■

Commif- lliall be empowered to lay before the Court of Diredors,

5 whatever

AND TRADE IN THE EAST INDIES. 631

whatever plans may be thought expedient^ for the meli- CHAP, iii
oiaiion c f the Company's affairs, and that the Dire61ors and rireftors
Ihall have the privilege of making anfwers or reports to the j^IaSo'^fhe
B ard upon fuch fubjeas. That the Dire^ors {hall alfo JI'^PXT"'*
have the privilege of laying before the Board, fuch propo- affairs.
fitions as they may confider it would be for the intereft
of the Proprietors iTiould be adopted, leaving it to the
Commiffioners to examine them, and to give their opinions
and dccifions. Thefe propofitions might come either from
the Dirc6lors, or from the Chairman and Deputy Chairman,
a6ling as a Secret Committee.

These outlines of the conftitution of the Court of Di- J^eruitof

tliefc plans.

reftors, and of the Board of Commiffioners for Affairs of
India, in connexion with the plan of government fuggefled
for the prefidencies, and of trade for the Company, are
fubmitted to the confideration of thofe who are entitled
to deviie or cftablilh a fyflem of Indian affairs, calculated
to render our Afiatic provinces and commerce to the Eaft-
Indies efficient branches of the empire, and of its refources.
The whole of this detail has proceeded upon authenticated
records ; upon fyftems which have been propofed, but
from circumftances not adopted ; upon mcafures which
have been recommended, bv the intcllio-ent fervants of the
Company at home and abroad, with the obje6l of improving
the political and commercial interefts of Great Britain in
the Eaft ; and upon a compadfon of the exifting fyflem of
India affairs, with thefe various fources of inform.ation.
As a plan, it vefts that power in the governments in
Part II. , India

631 OF THE BRITISH GO V ER N M EN T, &c.

^^lllf' ^^^' ^'"''■^''^ which the nature of our territories feems to require ;
it leaves to the Proprietors and to the Dire6lors their
trade and their revenues, appropriated in fuch a manner
as to enfure to them tlie value of their privileges ; and
it arranges the powers of the Company and of the Execu-
tive Government, upon p/finciples required by the charaders
of our Afiatic fuhjects, and by the fpirit of the Bntifli
Conftitution.

THE END.

ERRATA.
Preface, page 6 line 1 2, for come, read came.

Page. Line.

II 15 after hoih, dele the comma

16 ult. yir managment, r<-(r(^ management

62 20 a/?fr Peninfula, for ; r. ,

67 18 yi>r were fcandal, r. were a fcandal

73 20 after King, r. ;

7S i6 /or Parliment, r. Parliament

St. 25 y^r fufcipions, r. fufpicions

110 10 for fuperintendant, r. fuperintendent ,

119 2 yir are, r. is

122 24 /ir the the Company, r. the Company.

^34 23 y*'' '° '^^» '■• were to be the

172 21 yir fervatns, r. fervants'-

181 3 for acquired, r, required

184 25 for inventoric, r. inventories

239 20 for advanage, r. advantage

281 10 for privielge, r. privilege

297 In the note at bottom, yor;^.3, 268, 297 r. ;f.3, 329,136

for 3,049,670 f. 3,185,556

337 ^\ f""' foverisfnty, r. fovercignty

38a 5 for fubvervient, r. fubfervient

Ibid. 12 after more, dele ,

Ibid. 18 for Company's, r. Company

388 8 after Muffulman, dele ,

3^8 21 for difappove, r. difapprove

401 6 for feperate, r. feparate

418 ult. dele for •

432 22 for coporal, r. corporal

440 1 7 for fafety, r. fafety

457 9 fo'' 3t =* certain day, r. on a certain day

467 10 for blaim, r. blame

472 15 for inhabitats, r. inhabitants

485 8 for received in the treafuries, r. received into the treafurie*

487 9 for alowing, r. allowing

495 3 for fovereignty, r. fovereign

J 14 ^^ for kown faft, r. known fail

C19 io for liinitted, r. limited

593 iz for eftabalifliing, r. eftablifhing

605 5 for AUeppo, )-. Aleppo

615 ^\ for regulaticn, r. regulation

617 II for adminltltration, r. adminiftration

6t8 9 for Proprietor, r. Proprietor'*

7745 X 4

.ii>-»-

JtHH

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