Hints on the Present State !|>f the Question Between His Ma- :|jesty's Ministers and the Court !l)f Directors Kelative to the Re- iiaewal of the -Cast-India Company's Charter UNIVERSITY OF CALIFORNIA AT LOS ANGELES HINTS ON THE PRESENT STATE OF THE QUESTION BETWEEN HIS MAJESTY'S MINISTERS AND THE COURT OF DIRECTORS RELATIVE TO Henetoal OF THE EAST- INDIA COMPANY'S CHARTER. LONDON t Printed for BLACK, PARRY, and CO. Leadenhall Street. 1813. - LmcolnVInn-FieWs, london. HINTS, &c. 2 THE question respecting the East-India Com- L-J pany's exclusive privileges appears to be confined to one point ; which is, whether certain of the CO Outports of the United Kingdom shall be al- lowed to import goods therein from the East- Indies. o The China monopoly is not disturbed, his * Majesty's Ministers having stated their willing- 3 ness to recommend to Parliament, the continua- o tion of this most important trade entirely to the Company. The Company, it also appears, have agreed to a trade from the Outports of the United King- dom to India, on condition that the returns of such export trade shall be brought into the port of London only. So that from this it seems to B follow, 2 follow, the Company are willing to allow both import and export to the port of London ; and it is presumed to be their intention, that the returns to the port of London should be housed and sold by the Company as at present. Presuming the above to be a just statement of the question on the part of the Company, the real matters at issue are the following: The greater injury the Company's sales will suffer from the sales of similar goods in different parts of the United Kingdom, such sales not being subject to the Company's general arrange- ment, than those sales would suffer in the event of opening the trade to London only and conti- nuing the sales on the present system. And the injury the Company would suffer in their tea trade, by the expected introduction of teas in the ships importing Indian goods into the Outports; as it is contended by the Court, no regulations whatever could prevent the illicit traffic in teas under such circumstances. As the Company have agreed to abate their monopoly of the Indian trade, in conceding an open open trade to the port of London, it is clear the question between the Company and the Out- ports turns on the validity of the above objections. And indeed these objections contain in them matter for such serious apprehension as to the future management of the home finances of the Company, that it cannot have caused any surprize to find it asserted, in the printed corre- spondence, that without the import of Indian goods being confined exclusively to the port of London, it is impossible for the Court of Di- rectors to look forward with any confidence to the fulfilment of the important part assigned them in the Indian system. But the Ministers lav it down as an undeni- / able maxim, that the subjects of this country have an undoubted right to as much liberty of trade as they can enjoy, without injury to any other important national interest ; therefore the Ministers contend, the Outports and others have a full right to a participation in the trade to and from India, the Company's exclusive privileges therein not being considered by the Ministers B 2 sufficiently sufficiently important to the nation to continue such exclusion in the Company's favour. If from the operation of the circumstances stated, the sales of India and China goods should be materially affected, it may be justly asked ; how are the Company to meet the very large pecuniary demands lately brought, and expected to be annually brought in future on their home funds ? Now if the argument is sound from which is deduced the conclusion that there is no probabi- lity of any material increase, if indeed any in- crease at all, of the late average, total sales of Indian goods in England, it then clearly follows, that whatever part of the future consumption of Indian goods is supplied by the imports into the Outports of the United Kingdom, must operate as a deduction in the amount of the Company's sales; and of course, in the proportion of the value supplied through the Outports, deduct from the Company's means for meeting the heavy charges above noticed. This part of the question is not so much a question, question of profitable trade, as a question ef mere remittance. For it must be evident to every one conversant with Indian affairs, that if the Company have to pay in England a large annual sum on the proper account of India, in, addition to the former payments on that account, further means must be supplied from India, to enable the Company to meet such additional demands, as the profits on the present trade are already absorbed, in the payment of the dividend on the capital stock, and other fixed and per- manent charges. India is, or ought to be, able to furnish the necessary funds to enable the Company to fulfil these obligations on the account of India. But in what way are these funds to be made avail- able in England for that particular purpose ? The trade, it is contended, cannot be increased, and if any part of the present trade remaining to the Company, after admitting the Port of London to a participation, is occupied by the Outports, it then seems clearly to follow, that the funds ac- cumulated in India for remittance to England, through through the medium of the Company's commerce, to discharge the Indian debt and other Indian expences transferred to England, must either re- main in India, useless as far as this particular and urgent purpose is concerned, or those funds must be returned to England in bullion. India cannot be expected to furnish this bullion from its own currency, as part of a regular and general system of remittance ; because, as India possesses no mines within itself, its currency can only be replenished from without, to make good its own peculiar drains, without adding a new and constant drain for the supply of the funds of the Company in London. Hitherto the In- dian circulation has been supplied from the same sources whence the currency of Europe has been supplied. Whether those supplies have found their way to India direct from South America, or through Europe in the first instance, or in the second from Europe and America through China. Little indeed, comparatively speaking, can now l>e expected direct from Spanish America, owing to its own troubles, and to the disturbed state of Old Old Spain, which together have very much im- peded the usual influx of bullion to Europe. Still less can be expected through the United States, as it has been stated by their Finance Minister, since their declaration of war against England, that no revenue whatever is calculated from the import of goods from India and China : and if no goods are to be imported, there will not be sent from the United States to India or China, any bullion for the purchase of return cargoes. From this it seems to follow First; that during hostilities between England and the United States, no bullion finding its way, as heretofore, thence to India and China, and the disturbed state of Old Spain and its possessions cutting off the like usual supply through Ma- nilla, &c. it will be impossible for India to re- mit bullion to England to meet the payment of sums transferred from India to England. And second That as, from the participation of the outports in the present trade between India and England, the funds of India cannot be in- vested in commerce to meet the demands on England, England, the Company must be brought to a stand ; not from the want of funds, but from the absolute want of a remittance of those funds ; and that at a season too, when, owing to the par- ticular exigencies of the times, the Company require every aid, to enable them to fulfill their own engagements, and also to contribute to the general welfare of the kingdom at large. To whatever degree the China trade may be affected, by the increased facilities for smuggling tea, which conceding the import of Indian cargoes to the Outports will cause, in the same degree will the Company's sales in that most important, and to them, in fact, staple article, be affected : so that, what with the deficiency in the amount of sales, together with the want of a remittance through any other channel, the Company are exposed, not to the possible only y but in fact to the probable hazard, of being compelled in a short time to cease their operations altogether. It may be objected a that the concession supposed in favour of the port of London will bring the same difficulties on the Company, as are expected from the supposed further concession to the Out-* ports. But to this it may be replied, that by in- creasing the number of ports for importation, the quantity taken from the Company's imports .will be increased in a greater degree than if the, port of London only interfered ; and also, that by confining the import to London only, no further danger is to be apprehended on account of any defalcation in the sales of tea, from smuggling t which is not likely to be increased, if the Indian, trade is not removed from the port of London. In the discussion, however, which has been* carried on respecting these important points, it has l>een incidentally stated by His Majesty's Ministers, that if matters should proceed to a- crisis between them and the Company, means may be devised for conducting the administration of Indian affairs, without having recourse to the Court of Directors as the organ of that adminis-, tration. As this observation evidently involves the assumption of the revenues of India by tha Crown, a brief statement is now entered into, to, shew what would be the pecuniary burthen c brought TO brought upon the British public/ by transferring from the Company to the Crown the territorial possessions and revenues of India. ?'* Without, however, going into any enquiry oA the question of right to, or permanent interest in> the soil or the revenues, comprehended in the grants made to the Company previous to the yea? i76'5, it may be presumed a perfectly intelligible principle, that as Parliament has recognised the Company's claim to an interest in, those grant** sand to the subsequent acquisitions of territory and revenue in India, Parliament cannot entertain a proposition so obnoxious to every principle of British justice, as to deprive the Company of the benefit of those acquisitions, without remune-. fating them, for the expences actually incurred in obtaining the Indian territory and revenues* Neither can it be supposed, that Parliament would withhold from the Proprietors of East-India Stock that farther remuneration, to whieh they have been encouraged to consider themselve* Entitled. 1 Parliament did,, in the Act 33d George III, j-'- recognize reognige th'e fclairii t>f the Proprietofs of East* India Stock to at least 200 per cent, on theiij capital, in the event bf the Public participating in the then expected surplus proceeds from the* Indian territorial revenues. I ri several subsequent Acts, this principle has been admitted and con4 firmed. Now it may be presumed, if the admi- nistration of the revenues of India should ^.be taken from the Company, and as the necessary.; and absolute consequence thereof, the prospect 9! this reimbursement to the Proprietors should rbe altogether destroyed, that the least remuneration) which the Proprietors could claim, and the Jeas% also that Parliament would grant, wheixitiscofi^ sidcrcd that to the Company is to be prindipall/i ascribed th acquisition and maintenance of .the Indian Possessions, would be the repayment of the capital stock at 200 per centum; If Parliament deprive the Company of their, exclusive privileges as a trading corporation^ ane^ also deprive them of the Indian revenues^ it h* |he same thing as closing the operations of the* East-India .Company altogether.; ;And W t&i* c 2 case case it is clearly equitable, if the Parliament open' the trade to the British public, and assume th* Indian revenues, that the British public should take also upon themselves all the debts, engage- ments, and incumbrances, which the Company have come under on account of the trade and revenues of India. These engagements (such as are of a pecuniary nature only are now under consideration), may- be briefly stated as follows, ^* 1st. In India. The whole interest of the In- dian debt which the governments in India have made payable in England, and to which the Ministers of the Crown have assented : the : annual amount of which is about ^1,500,000. The Company are also bound to the payment in England of pay on furlough and retirement, to the officers of their Indian army ; and to the payment of the demands on account of King's troops serving in India, amounting together to* about j50Q 3 QOO per ann., which charges would be borne by the public in the event of the Indian administration being transferred to the Crown* c There* There are further sums payable in. England en account of India, for which the Company have hitherto provided the necessary funds, and which sums will continue to be required in Eng- land, whether the administration of the Indian revenues remains with the Company or should be transferred to the Crown; these sums may be taken at the annual amount of about ^400,000. There is further to be provided for, the inte- rest and sinking fund on the loan of ^2,500,000 from the public, amounting to ^242,820 per ann., which must be paid, whatever becomes of the Indian revenues, or by whomsoever they ^re administered. These sums together, therefore^ on account of India, payable in England, amount annually to about , . . , ........... ,2,650,000 3d. In England. What owing on securities pf the Company's bonds and annuities and for bills from India, say about <9,5OO',OOO, and tne amount of the capital stock at 200 per cen- Jum, as before stated, ,000,000 j 12,OOO,OOQ, making together an aggregate ef * ....... . . . . . . . . . . . . .^S l,500,QOQ r From which should be deducted, the available assets in England, being r -, 7 ^he goods in warehouse Unsold, and the value of goods, after deducting - : ^ : - charges* which may be expected tc* arrive in England in the current * year; together With the amount remaining due from government for annuities, which would not be pay- able to the Company, in the case - Supposed .... . * . < . c ' *> 1 0,5OO,00$ ,11,000,000 This remaining sum, if funded on the most reasonable terms, cannot be supposed to require* a less interest than' <5 'per cent., Which would constitute an additional annual charge in Eng- land to the amount of 50,000 ; making with the sum supposed annually payable in England '. .i I . . . , ^ . . ;'^ ,; on account of India, the aggregate of^S, 200,000, as the charge "brought upon the public by the presumed f. >\ '. _ * 15 presumed change in Indian management ; with* out including any charge for remuneration ta uch of the Company's officers, owners of *hip% tradesmen, &c. &c. as may materially suffer from ihe loss of emolument in some instances, and from the loss of employment altogether m iptbersbr\ In return for this great annual charge, brought Upon the British public by the transfer supposed, that public would obtain in India, the revenue* ivith all the Company's present property there, together, with the cargoes afloat oix their voyagQ thither ; a very small part of which can be turned into available funds. And in England, the East* India House, warehouses, and all other appurte* nances, which are equally unavailable with iimilar property in India. \ In the event of the supposed change taking place, it may be considered, at least, doubtful; whether the public would derive an amount of clear annual revenue in Egland from the India and China trade, equal to that which now flows through the Eastrlndia Company into the King!* Exchequer, yf 16 Exchequer. But important as this considers* tion is, when the present amount of that reve* ue is contemplated, viz. more than > 4,OOO,OOO per annum, there is another consideration con<- nected with the subject, which is of importance, by no means inferior to the question of revenue consisting of duties of custom and excise and which now requires to be noticed. . The Company have no other means of pro- viding for the large sum annually payable in England, than by the sale of their investments from India and China ; and it is clearly de* monstrable, since the interest on the Indian debt has become payable in. England, that the amount of that interest so payable in England not being demanded in India, should be applied^ in the first instance, to the provision of invest^ ment for the London market. This encreased application of funds in India for the purchase of investments, would necessarily induce, so long as the sales of Indian produce in England do not materially increase, a corresponding reduction itt the value of exports hitherto furnished from England 17 England for the purchase of investments in India. The operation of these circumstances would, to- gether with other changes flowing from this al- teration in the course of affairs, enable the Compa- ny to provide for all the demands brought upon their home funds, by the interest on the Indian debt and other Indian charges payable in England. But if the trade is laid open to the public, and the revenues be administered by the Crown, it becomes a question of much moment, as to the manner in which the King's Ministers are to render the Indian revenues available in England, for paying the annual sum of ^3,200,000 before mentioned. It is an unquestionable fact, that India has ab- sorbed a very large portion of the bullion sup- plied from the mines of the western world, probably not much less than three millions sterling annu- ally on an average of the last eight or nine years; but although this is the fact, it by no means follows, that India is capable of furnishing from its circulation, any considerable part of this annual importation, in payment of the demands D transferred 1 transferred from India to England. Indeed, when it is considered that this absorption of the precious metals in the East has been going on for a long course of years, it is most probable, even under ordinary circumstances, that India could not be expected to do more than to furnish on a pressing emergency, two or three millions sterling for the relief of the home Treasury. But in the present situation of the Western world, it is to be apprehended, so far from India being able to afford bullion for the relief of England, that India itself will suffer some dis- tress and embarrassment, from the failure of those annual supplies which have hitherto been furnished, through the commerce of the Ignited States, and from the remittances through Old and New Spain, Portugal and foreign Europe. It appearing then that India cannot transfer any eonsiderable portion of its revenues to England, by annual supplies of bullion, so as to meet effectually the sums on account of India made payable in England^ it would seem therefore to follow, that the mode for completing this neces- 19 sary transfer in future years, must be the same which has obtained in former years which is through the medium of a regular and well conducted commerce. But if the East-India Company, according to the supposed case, are? not to become the channel for this most impor- fant commerce ; on whom, it may be fairly asked, is this duty to devolve? Is ittobe presumed that Parliament would sanc- tion so novel and extraordinary a procedure, as to allow the King's officers in India, advancing from the public revenues there, funds to resident mer- chants, or to the supra-cargoes of merchants residing in England, for the purchase of goods for the English markets? But were a measure of this sort to be adopted, the sums so advanced in India could only be returned into the King's Exchequer, on the sales of those cargoes in En- gland. And in this case, how many difficulties must be overcome in India in the commencement of the plan ; and how many more must be en- countered in England to render such a plan efficient here ! How many new offices must be D 2 instituted 20 instituted both in India and in England; and after all, where will be found the security for the money advanced, and for its repayment in Eng- land, so as to meet the charges for which those sums are appropriated in India? Will the Crown take the risk of the seas,- are its officers to examine into the sea-worthiness of the ships or to exercise any controul, or judgment, res- pecting the loading or departure of the ships ? Is the appropriation of the sums advanced in India to be left altogether to the discretion of the merchants or their supra-cargoes, applying for those advances? And is this large annual amount to be placed altogether beyond the reach or management of the servants of the Crown in, India ? And again, in respect to management in Eng w land the cargoes will be secured in bonded warehouses. In the case of home consump- tion, are the sales and deliveries to be left alto- gether to the discretion of the importers ? And in the case of exportation, how is the amount Advanced on such cargoes, or parts of cargoes, to 21 to be secured, and the advances returned ? Will officers of the Crown be appointed to secure such a sale value of the cargoes sold, as will be suffi- cient to indemnify the Crown for the advances, and also to prevent the deliveries of the goocjs till such advances are repaid ? It is clear, that if some efficient checks, controul and regulations, are not established on all these points, both in India and in England, there will be no security whatever for the due return of the sums advanced in India. And if such efficient controul is effected, what is to become of that liberty of trade, for which it appears so many are anxiously seeking ? It is indeed too probable, the trader, under such circumstances, would find himself more crippled in all his operations, than has been stated by those, who have complained of the vex- ations and difficulties, to which they have been exposed under the Company's present regulations. These are some of the difficulties which present themselves, on a very cursory review of the con- /sequences of that change, which is supposed tq be be meditated by thbSe who affc hostile to the Company's wish, to keep the import trade of India to the port of London alone. It is unnecessary to state the actual uncertainty of any real increase of the trade by the change supposed ; indeed, some of the most strenuous advocates for the participation of the Outsorts argue their right to a share of the present trade, if it should be de- monstrated that trade cannot be increased ift any decree Whatever. It may be considered sufficient to request that a due attention be paid to the several points which have been very briefly stated. Considering on the one hand the real advantages of the present system, or of that to which the Company have assented, viz. giving the Port of London free import and export to all parts of India, through the Company's several establish- ments abroad and at home, together With a free export to India from the Outports, and leaving the private merchant to employ his own tbiiiiage and to regulate the sailing of his own ships according to his own discretion, arid taking irito account, bri ' the other hand, the airiest certain ruin of the Company 23 Company and its various establishments, together with the addition of a large annual sum to the public taxes in England as before stated. It is therefore hoped, these plain and cursory hints will induce that serious reflection on the whole of this momentous subject, as to cause a patient reconsideration of all the points which have been brought into discussion, that at length the whole question may be finally settled, with the full concurrence of His Majesty's Ministers, the satisfaction of the just expectations of the East-India Company, and to the real benefit of the merchants and manufacturers and the British public in general. London, the 2~th March 1813. Printed by Cox and Baylis, Great Queen Street, Line oln's-lnn-Field. UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. ABB fctttt* OCT 21 A.M. 7|a|9lio!Uji2 FEB REC'D LD-URL JW2673 41911 flEC'D LD- RU URL to 12 975 ,wvi* APR 4 J373 REC'D LD-UR AUG05198 Form L9-32m-8,'58(5876s4)444 DESK 964 P.M. .21 8 14jjli . UNIVERS1T \LJFORNIA AT LOS ANGELES LIBRARY UC SOUTHERN REGIONAL LIBRARY FACILITY AA 000001453 o