\60\ 
 
 I An Abstract Narrative of t 1 e 
 .5 Papers on the Trade of India,,. 

 
 UNIVERSITY OF CALIFORNIA 
 AT LOS ANGELES
 
 ABSTRACT NARRATIVE 
 
 OF THE PAPERS ON THE 
 
 iATELY PRINTED BY THE DIRECTORS OF THK 
 
 HONOURABLE EAST-INDIA COMP1NT, 
 FOR THE USE OF THE PROPRIETORS. 
 
 LONDON ; 
 
 BYC. CAWTHORN, BRITISH LIBRARY, NO. 131, STRAND j 
 
 BOOKSELLER AMD PRINTER TO HER ROYAL HIGHNESC 
 
 THE PRINCESS Of WALES. 
 
 1801.
 
 
 
 *
 
 PREFACE. 
 
 THE Author of the Abstract Narrative 
 now submitted to tbe Public, feels the importance 
 of the subject he has endeavoured to simplify: 
 that those who have not leisure or inclination to 
 wade through a voluminous mass of matter, may 
 skim the cream of the argument, or rather take 
 
 it ready skimmed. 
 
 Impartiality, the leading and most popular fea- 
 ture of our envied Constitution, has been his 
 study ; being well aware that on a subject where 
 such honourable, and enlightened characters are 
 at variance, he may safely state with a distin- 
 guished Writer, 
 
 " Much may be said on both sides ! !'* 
 
 AN INDEPENDANT PROPRIETOR, 
 
 - ;t5484l
 
 TRADE 
 
 BETWEEN 
 
 INDIA ANT) EUROPE. 
 
 T, HE Papers on this important subject, 
 a subject which has so long been floating in 
 the minds of the commercial people, not 
 only of this country, but in those of Europe 
 at large have lately been printed for the use 
 of the Proprietors of East India Stock; as 
 their distribution must naturally be limited 
 the Author of the subsequent ABSTRACT 
 NARRATIVE has endeavoured to simplify the 
 subject, and by producing it in its present 
 .shape to render it accessible to that part of the 
 Public who, though not Proprietors of East 
 India Stock, ar_ yet " tremblingly alive" v to 
 the interests of those Possessions which form
 
 .the brightest and most valuable jewels of the 
 Imperial British Diadem. 
 
 These Papers forming a considerable 
 
 volume, consist of Six Numbers, viz. 
 
 
 
 No. I. A Letter from the Right Hon. 
 Henry Dundas to the Chairman, dated the 
 2d of April, 180O. 
 
 II. Report of the Special Committee, to 
 whose consideration the Letter from Mr. 
 .Dundas was referred. 
 
 III. Minutes of the Court of Directors of 
 the 4th of February, 18O1, containing the 
 Resolutions of the SpecialCommittee, adopted 
 by the Court. 
 
 .... t 
 
 IV. A Letter from the Right Hon. Henry 
 
 Dundas to the Chair man, dated the 21st of 
 
 ^ 
 
 March, isoi. 
 
 V. A Letter from the Governor-General 
 
 / 
 
 to the Court of Directors ; dated Fort Wil-
 
 liam, the 30th of September, 1800, and re- 
 ceived over-land the 2d of March, 1-801. 
 
 VI. Second Report of the Special Com- 
 mittee. 
 
 There are besides a variety of Documents 
 not printed, left for the perusal of the Pro- 
 prietors in the Secretary's office, forming an 
 APPENDIX to the printed volume. 
 
 I have taken some pains to bring the whole 
 of the printed Papers into that kind of com- 
 pressed state,which often is figurately and ap- 
 propriately enough termed, lying in a NUT- 
 SHELL, it will afford me infinite gratification 
 should the circulation of the ABSTRACT NAR-^ 
 
 RATIVE prove, that the Public find my NUT 
 worth cracking. Without further Preface I 
 proceed . /* 
 
 ( No. I. 7 
 
 Mr. Dundas, in his Letter to the Chair- 
 man on the question of Private Trade and 
 India-built Shipping, courts a decision
 
 has been unanimously approved by the ablest 
 servants in India, and nothing has prevented 
 its adoption but the great quantity of un- 
 employed shipping sent out by the Company. 
 The investment and shipping ought to be sys- 
 tematically conducted, and a discretion left to 
 supply accidental deficiencies, with the ship- 
 ping to be found in India ; the regular ship- 
 ping from this country should bear an exa6l 
 proportion to the expected investment . It 
 was pri this principle three thousand tons of 
 private trade were appropriated in 1793, at 
 the renewal of the charter, though experience 
 has proved its inadequacy ; that clause in the 
 a6l ought therefore to be repealed, and a 
 power granted in lieu to employ India-built 
 ships, which 'ships might be contra61ed for 
 by Government, and re-freighted to the in- 
 dividuals thiswould not operate} against the 
 regular shipping. The only eflfecl: of its not 
 being adopted, Would be to benefit the trade 
 of other nations, but not to render any ad- 
 dition to the regular shipping of the Com- 
 pany, It may be also considered, how far
 
 it is consistent with the national interests, 
 that so much ship-timber of this country 
 ought to be appropriated to its commercial 
 concerns: it has been asked, why should 
 not the subjects in Great Britain have the 
 same indulgencies with those contended for 
 in India ? 
 
 The answer is plain, a MATERIAL NATIONAL 
 
 INTEREST, the EXCLUSION of FOREIGNERS C 
 
 Such an indulgence to English merchants 
 might tempt them to withdraw the capital 
 of the country to a trade less profitable to 
 themselves and less beneficial to the public, 
 introducing a rival capital in India against 
 the remittance trade of the Company, and 
 the individuals sheltered under its wing. 
 The export trade to India can never be pro- 
 portionate to the wealth and population of 
 the Indian empire ; not but the exports, 
 which have been increasing, may be consider- 
 ably increased, but the prospecl must be a 
 limited one. A difference of opinion has pre- 
 vailed to what places in India private trade
 
 C 12 D' 
 
 > 
 
 should be allowed. But there does hot ap- 
 pear grounds for any particular "restriction 
 
 with regard to agency at home ; there.is not 
 
 ^ ' ' ^> 
 
 cause for any interference of the Company, 
 
 provided the great point is observed, that 
 every thing comes through the Company's 
 sales and warehouses. 
 
 NouII. 
 
 -The Special Committee in their report oh 
 Mr. Dundas's Letter, speak of it as^ con- 
 taining the outlines of Indian policy, traced 
 
 O ^ , i J 
 
 with equal energy and 'justness, and with a 
 liberality which must command respect and 
 'applause. 
 
 The Committee then proceed to take a 
 
 short retrospect of the -privileges already 
 
 / 
 conceded to the individual Trade of India ; 
 
 the claims now advanced ; the consequences 
 to which they lead ; the commerce of British 
 India with Europe and America, its amount 
 and distribution ; the Indian Capital appli-
 
 C 13 D 
 
 cable fo it ; the. nature of the ability which 
 British India possesses for extending its pro- 
 .duce and exports, and the policy of promo- 
 ting such an extension ; and lastly, the true 
 principles of policy by which the dependency 
 of India on Great Britain should be main- , 
 tained, and the intercourse between the two 
 countries preserved ; and conclude much 
 elaborate investigation by the following Pro- 
 positions : 
 
 ' " That the Company shall , themselves 
 ;iirnish whatever amount of tonnage may be 
 wanted for bringing home private trade, in 
 ships either wholly destined for that purpose, 
 or if not so destined, at least not applied to 
 political or warlike purposes ; but sail from 
 India direct to London, at fixed periods most 
 convenient for the fair-weather season. 
 
 ' 
 
 "That the rate of freight during war, 
 
 shall be as low as that at which the Indian 
 ships arrived here in the jpresent season are
 
 chartered to the Company, and the peace 
 freight proportionately reduced. 
 
 " The commodities to be 'warehoused and 
 shipped, and brought to the Company's 
 sales in the spirit of the existing regulations, 
 and with every fair attention to the interest 
 of the private trader. 
 
 " That this particular class of ships shall 
 be built by the Company, manned with Eu- 
 ropeans, armed equal to the best of the In- 
 dian ships arrived in this ' country ; and till 
 such are built, proper ships to be sup- 
 plied ; 
 
 " That if at any time the provided tonnage 
 shall riot be sufficient, it shall be allowable 
 for the Governments abroad to freight 
 Indian ships to supply the deficiency. 
 
 "That no person shall embark in this 
 trade without the Company's licence for re- 
 siding in India."
 
 No. III. 
 
 Contains fifteen unanimous Resolutions of 
 the Court, giving effect to the Propositions 
 above stated, viz. 
 
 1. That the present system is the best 
 calculated for the benefit^ of the Nation, 
 and that an open Trade would be subversive 
 of its rights. 
 
 . That it is the interest of the Company 
 
 Nation to guard against any indefinite 
 
 enlargement of the present system. 
 
 o 
 
 and 
 
 3. That the maritime exports from India 
 of all nations in amity with Great Britain, 
 exclusive of those for the Company are 
 greater than at any former period. 
 
 4. 'Acknowledges the impolicy of 
 eluding other European Nations from a 
 proper share of Indian Commerce.
 
 5. Asserts that the regulations of, 179 3 
 for extending the exports of England to 
 India, and bringing home its commodities, 
 have not been evaded by the Company, and 
 that all charges against them on that head 
 are unfounded, 
 
 6. That the clandestine trade from Ben- 
 gal has rather diminished than increased, 
 not exceeding on an average of four years 
 ending with 1798-9, twenty-five lac of rupees 
 per annum. 
 
 7. That, therefore, it may safely be con- 
 A^cluded that the trade of Foreigners is a bona 
 
 fide one with specie jmported and which 
 sound policy demands to be permitted. 
 
 8. That the trade with Europe frenvthe 
 Indian Settlements of the French, Dutch, 
 and Spaniards, could not have been depressed 
 by any other measures within the Company's 
 power.
 
 9. States the wish of the Company to en- 
 courage their Indian Subjects in agriculture 
 and manufactures, and adverts to their li- 
 beral encouragement of several valuable ar- 
 ticles on private account, viz. SUGAR and 
 INDIGO. 
 
 10. That ,the capital of British In- 
 dia for an Export Trade to Europe, exclu- 
 sively of that senjt home, by bills on the 
 Company, can never exceed half a million 
 sterling, per annum. 
 
 11. Points out the danger of adding the 
 capital of private residents in Great Britain, 
 
 transplanted to India for the purpose of 
 forcing the productions of that country be- 
 yond the ability of its oyvn means. 
 
 12. That as the alledged difficulties of 
 conveying goods by the Company's ships*, 
 have not prevented the disposal of all the 
 produce which the capital of the country 
 raised, the plea so often urged by persons
 
 L !3" 3 
 
 interested in the Private Trade, that the 
 Company should permit the SURPLUS PRO- 
 
 THE COUJITJLYL TO BE EXPORTED, 
 
 % J. 
 
 13. Conveys the Propositions of the Com- 
 mittee already stated, in the form of R'tfso- 
 LUTIONS. 
 
 14. Contains reasons against the propo- 
 sitions urged by Mr. DUNDAS. 
 
 15. Concludes by proposing a full discus- 
 sion of the subject with Mr. DUNDAS. 
 
 No. VI. 
 
 Mr. DUNDAS on the, 2ist of March, in a 
 second Letter to the Chairman states his sen,*- 
 timents on the Court's preceding Resolu- 
 tions. 
 
 Upon the First, Second, Third, Fourth, 
 Ninth, Tenth, Eleventh, and Twelfth, his 
 opinion accords with the general principles 
 and he pauses upon the Fif th,. Sixth, Seventh,
 
 C 19 3 
 
 and Eighth, from not having before him the 
 particular documents on which they were 
 founded. But it is to the PRINCIPLE and BASIS 
 of the measure he differs : a RADICAL DIF- 
 FERENCE, the more to be regretted because 
 the grand object of solicitude to both parties 
 is precisely the same. If any thing can en- 
 danger the monopoly a monopoly - even 
 more important to the political interests of 
 the State, than to the commercial interests 
 of the Company, it is an unnecessary ad- 
 herence to points not essential for its exist- 
 ence. Mr. DUNDAS then refers to a letter 
 of the SOth of September last, from the Go- 
 vernor-General, supporting with clearness 
 and perspicuity, the grounds of every opi- 
 nion and principle formerly adduced by 
 the Right Honourable President, who con- 
 cjudes with intreating .thafc if his reasoning 
 and judgment, or the reasoning of the Go- 
 vernments abroad, has not the effect of 
 varying the opinion of the Court, that they 
 will not delay acting upon the principles de- 
 tajled in their Resolutions ; as the worst re-
 
 suit that can arise from the discussion, is any 
 further delay in coming to a decision upon 
 it. 
 
 No. V. 
 
 The GOVERNOR-GENERAL in a letter 
 dated 30th of September 1800, received 
 over-land 2d of March, 1801, states, that 
 having thought it his duty to revert, during 
 the present season, to his plan of the 5th of 
 O6tobe,r 1798, viz. for the encouragement of 
 the private Trade between India and Lon- 
 don : he shall add the reasons which he 
 hopes will induce the Court to sanction his 
 proceedings by a regular and permanent 
 system founded on similar principles. 
 
 The Court's orders of the 25th of May, 
 1798, were not received till the private Ton- 
 nage of 1798-9,. had been already provided 
 under terms of advertisement, on the 5th of 
 October, 1798 but the Court's orders in 
 the year 1799-1800, were strictly adhered
 
 to, although his convidtton remained unal- 
 tered with regard to the expediency and 
 justice of his plan of the 5th of October, 1798. 
 Disappointed in receiving the Court's or- 
 ders, he was compelled to adopt a Resolu- 
 tion \vhich his duty and inclination would 
 have induced him to delay, the more especi- 
 ally as the expected amount of the Tonnage 
 of 1800-1, is inadequate to the demand in 
 India, and a large proportion of the gruff 
 goods belonging to the Company at Calcutta, 
 and nearly the whole of the private goods, 
 for which the Company is bound by Law to 
 furnish Tonnage, cannot be shipped for 
 England unless Indian built ships are em- 
 ployed. The question is therefore no 
 longer that of expediency or liberal policy, 
 the MODE of OBTAINING Tonnage is all that 
 remains. 
 
 The result is that the whole of the pri- 
 vate goods of this season, must be 
 on INDIAN Shipping,
 
 U. . _> 
 
 Exclusively of two ships recently en- 
 gaged, and provided with cargoes to the 
 amount of 1500 tons, the port of Calcutta 
 contains above 1OQOO tons built in India 
 this Tonnage has been actually tendered. 
 Marquis WELLESLEY proceeds to state the 
 reasons which satisfied him that the plan of 
 hiring ships on the part of the Company, 
 and of re-letting them to the Proprietors of 
 ships, leaving the Proprietors of ships, and 
 the Merchants at liberty to settle the terms 
 o freight, was more advantageous to both 
 parties than the arrangement adopted by the 
 
 ourt T s order's of May, 1798. 
 
 These orders were considered by the 
 tytejchantSj particularly the Proprietors of 
 heavy goods to be extremely prejudicial to 
 their interest also to the Proprietors of 
 ships. Both parties appearing equally ad- 
 verse to the intervention of the Company's 
 Agency. 
 
 Under the Governor-General's plan of 
 October, 17g8, while the owners were en-
 
 abled to afford freight at _ a reduced rate, 
 they derived a greater profit. To the Mer- 
 chant this plan affords the most important 
 advantages a reduclion in rate of freight 
 a power to settle his engagements with the 
 owner, previous to purchasing goods, 
 those goods accomodated to the existing 
 rates- of freight -afad the regulation of every 
 consignment and ctraft forr^ rata to the 
 
 **- 
 
 quantum of Tonnage to the period of ex- 
 portation from India, and expected arrival 
 in England the Merchant whilst depending 
 on the Company for Tonnage, is left in 
 great embarrassment. 
 
 The private Tonnage from "Bengal, sub- 
 sequent to the a6l of 1?93, exclusive fc of 
 goods sent in privilege, stands thus ; 
 
 Tons. 
 
 1795-6 - 5,34.6 
 
 1796-7 4,659 
 
 1797-8 - - - 3,787 
 
 1798-9 - 6,223 
 
 1 7S9 - 1800 7,74.8
 
 The correspondence of the Board of 
 Trade affords abundant proof* that the 
 above Tonnage \vould have increased parti- 
 cularly in 1799-ieoo, if adequate encourage- 
 ment had been given to Indian built ships- 
 and the preceding account shews that Ben- 
 gal alone has exceeded by 200O tons an- 
 nually on an average,, the Amount of Ton- 
 nage allottecHSy law for all India. 
 
 In the present season, the Trade con- 
 veyed in foreign bottoms, if left unrestrained 
 promises to increase even beyond the rapid 
 progress of last yea*v The port of Calcutta 
 
 * The Americans obtain Indian goods so much cheaper, 
 by a direft intercourse with India, than they could through 
 the circuitous route of Europe, that they will probably con- 
 tinue to deal largely, even on their own capital, with India. 
 It is now the ordinary practice of the Americans, under the 
 last treaty of commerce, to ship cargoes in India for 
 America, to touch at some port in America, and without 
 trans-shipping or umloading the goods in America, to pro- 
 teed direftly to Europe, and to dispose of their Indian car- 
 goes in an European port. This practice is, unquestionably, 
 to the treaty of commerce with America.
 
 C 25 3 
 
 containing about 8,5OO tons of shipping 
 under American, Portuguese, and Danish 
 Colours ; this Trade is conducted with all 
 the advantages of economy and celerity ; the 
 voyage from America to Calcutta performed 
 in less than four months ; some Americans 
 have disposed of their imports, purchased 
 another cargo, and left Calcutta within 
 twenty days from the date of their arrival. 
 Were the British Merchants in India per- 
 mitted to provide their own tonnage, London 
 would be the universal mart for the produce 
 of Asia. The extra tonnage engaged in 
 England, ean never be a practicable channel 
 through which the British Private Trade of 
 India can contend with Foreign adventure. 
 
 The state of perfection which ship-build- 
 ing has attained in Bengal, supported by 
 rapid and increasing supplies of timber; 
 large and thriving plantations of TEAK 
 spreading over the whole province, renders 
 tonnage to any amount always attainable.
 
 L 
 
 - large proportion of this valuable trade 
 is already in the hands of foreign nations. 
 The trade of America and Portugal* with 
 .the part of Calcutta alone in 1799-iSOO, 
 amounted 
 
 In Imports Sa. Rs. - - - 81,81,005 
 Exports __-_,- 7 1, .50,372 
 
 being an increase compared to the three pre- 
 precedirig years. 
 
 In Imports ofSicca Rs. - - - 63,98,678 
 Exports - - - -. - - 43,92,76$ 
 
 Whilst the Imports of the British subjects in 
 1199-isoo amounted only to Sicca R's. 
 
 .* l"he Portuguese and Americans pay only one per cent 
 on Indian produce imported and re-exported. By the 
 warehousing act lately passed in Great Britain, callicoes pay 
 2|, muslin 7- per ceitf, on the sales if sold for expoi'tatiqn ^ 
 all other goods, (excepting cotton, spices, bullion, &c. 
 diamonds, precious stones, which pay no duties) pay tWo 
 .per cent, exclusive of the convoy duty, payable by the iiji- 
 porters. A reduction of those duties in England is abso- 
 lutely necessary, -to complete the system of drawing thepri- 
 vate trade of India to the Port of London,
 
 r 27 i 
 
 47,87,101, and the Exports to 67,66,64- 
 The sales in England must necessarily be af- 
 fected by the quantity of Indian goods thus 
 passing into foreign markets, and the profits 
 of the private British merchant proportion- 
 ably diminished. 
 
 Every facility should be given to the 
 British merchants in India, to enable them 
 tfb enter into a competition with those trading 
 in similar manufactures provided by foreign 
 capital, and the Company will reap a pro- 
 portionate advantage: its saving by the 
 conveyance of gruff yards in Indian built" 
 ships, this season, amounts to 20,0001. 
 
 Under the above serious impressions;, 
 Marquis Wellesley concludes, with adverting 
 to the plan he has adopted for sending home 
 Indian-built -ships, by which means a tem- 
 porary restraint is applied to the foreign 
 trade; and ardently hopes, that the Court 
 iri their wisdom, may approve and perpetuate 
 the policy which dictated his orders of the
 
 C.28 3 
 
 Sth of Oclober, 1798, and 19th of September 
 18OO. 
 
 No. VI. 
 
 The Special Committee in their second 
 Report, enlarge on the references made to 
 them of the Letters from Mr. Dundas and 
 Marquis Wellesley, both on the important 
 question of enlarging the trade of British 
 Subjects between India and this country; 
 they compliment Mr. Dundas highly on his 
 candour, in admitting that the whole -dis- 
 cussion between himself and the Court, has 
 not been a controversy abput their respective 
 powers; but rather an argumentative in- 
 quiry. 
 
 On the single point on which Mr. Dundas 
 differs, viz. Indian Shipping );he Committee 
 still maintain their original ground, and con- 
 tend that the probability only of .great 
 danger is a sufficient objection to - the pro- 
 posed innovations ; the Committee then
 
 f '. t ^ 3 
 
 proceed. ta animadvert on- Mjfr^is Welles- 
 ley's Letter, and they particularly advert to 
 that part of it where, to shew that it is not 
 probable any increase of x Private British 
 Trade in India, would ./necessarily produce 
 a proportionate augmentation in the number 
 of British Agents; resorting thither. He ob- 
 serves, that British Merchants there, would 
 be" likely to-be employed by persons en- 
 gaged in commercial concerns at home, who 
 might, easily- conduct their operations with 
 India/' They state this to be a grand and 
 even an essential difference in judgment be- 
 tween ( the Marquis on the one side, and the 
 Court and Mr. Dundas on the other ; and 
 add, that it must be useless to debate about 
 subordinate details, if this great point be not 
 settled they urge the high improbability 
 of excluding, for any length of time, British 
 Ships and Owners, and Merchants resident 
 in Britain, from the privilege at first con- 
 ceded only to India Ships, and Residents in 
 India ; and that if the proposed change (not 
 within the scope of the A61 of i793,) were 
 
 E
 
 admitted, such exclusion would be impos- 
 sible. 
 
 1 Although the Committee cannot allow the 
 present state of the Foreign Trade to be of 
 preponderating importance in the vast ques- 
 tion under consideration, they yet confess, 
 that at a seasonable moment it may require 
 the interposition both of Government and 
 the Company. The circuitous Trade of the 
 Americans with foreign Europe is a vio- 
 lation of the Treaty of Commerce, little me- 
 rited by the great privileges given them in 
 that quarter. The Indian Duties on exports 
 and imports require modifications in favour 
 of the London Trade. 
 
 The Committee have not a doubl that the 
 effects of the privileges required would be 
 very great upon the existing system of Indian 
 intercourse and connection, and gradually 
 change the character of that intercourse. 
 
 o 
 
 Many things would conspire to antiquate the 
 present establishment, and the genius, in a
 
 C si 3 
 
 word, of the Commerce thus carried on, 
 would tend to an unrestrained and a colonial 
 
 system. 
 
 In concluding this momentous subjecl, 
 the Committee very feelingly describe the 
 delicacy of their situation as Directors ; 
 called upon to resist Private and Personal 
 Interests and add, that in their opinion the 
 question involves in it ultimately the perma- 
 nence or the gradual supercession of the pre- 
 sent system of Indian Policy. 
 
 FINIS. 
 
 ^PRINTED BY CtORGE CAWTHORK, STRAND.] 
 
 r
 
 UNIVERSITY OF CALIFORNIA LIBRARY 
 
 Los Angeles 
 This book is DUE on the last date stamped below. 
 
 8E8T) 
 
 JUL30J986 
 
 , PR 2 6 2007 
 
 Form L9-32m-8,'58(5876s4)444 
 
 UNIVERSITY OP CALIFORNIA 
 
 LOS ANGELES
 
 UC SOUTHERN REGIONAL LIBRARY FACILITY
 
 
 Unive 
 
 So 
 
 L