u PAPERS RESPECTING THE NEGOCIATION BETWIXT HIS MAJESTY'S GOVERNMENT ANB THE EAST INDIA COMPANY, FOR A RENEWAL OF THE EXCLUSIVE PRIVILEGES THAT COMPANY HAS ENJOYED. Ordered to be printed i^th April 1812. / 31 LIST OF PAPERS. No. I. Minute of a Secret Committee of Correfpondence, the 5ih Oftober i8o8. No. II. Letter from the Right Honorable Robert Dundas to the Chairman and Deputy Chair- man, dated the 30th September 1808, referred to in the preceding Minute. No. III. Minute of a Secret Committee of Correfpondence, the 12th October i8c8, and Letter from the Chairman and Deputy Chairman to the Right Honorable Robert Dundas» dated the fame Day. No. IV. Minute of a Secret Court of Direiflors, held on Wednefday, the 7th December 1808. No. V. Minute of a Secret Court of DireAors, held on Friday, the 16th December 1808, and Letter from the Chairman and Deputy Chairman to the Right Honorable Robert Dun- das, dated the fame Day. No. VI. Minute of a Secret Court of Dire£lors, held on Friday, the 13th January 1809, aad Letter from the Right Honorable Robert Dundas to the Chairman and Deputy Chair- man, dated the 28th December 1808. No. VII. Minute of a Secret Court of Dire£tors, held on Tuefday, the 1 7th January 1 809. No. VIII. Letter from the Chairman and Deputy Chairman to the Right Honorable Robert Dundas, dated the 13th January 1809, noticed in the preceding Minute. No. IX. Minute of a Secret Committee of Correfpondence, the 38th February 1809, r ' No. X. Minute of a Secret Committee of Correfpondence, the 5th December 1809. ^ No. XI. Letter from the Chairman and Deputy Chairman to the Right Honorable Rober^ ^ Dundas, dated the 5th December 1S09, noticed in the preceding Minute. No. XII. Minute of a Secret Court of Directors, held on Friday, the 3d January 1812. No. XIII. Letter from the Right Honorable Lord Vifcount Melville to the Chairmun and Deputy Chairman, dated the 17th December 181 1. No. XIV. Minute of a Secret Court of Diredors, held on Friday, the 28th February 1812. No. XV. Minute of a Secret Court of Direftors, held on Saturday, the 29th February iSi 2. ^ No. XVI. Minute of a Secret Court of Direclors, held on Monday, the 2d March 181 2. No. XVII. Letter from the Chairman and Deputy Chairman to the liight Honorable Lord Vifcount Melville, dated the 4th March 1812, with Enclofures, marked A, B, C, D, and E, noticed in the preceding Minute. No. XVIII. Minute of a Meeting of the Deputation, the 3d March j 8 12. No. XIX. Minute of a Secret Court of Diredors, held on Friday, the 6th March 18 12. No. XX. Hints approved by the Committee of Correfpondence, and fubmiited to the Con- fideration of the Right Honorable Lord Vifcount Melville, noticed in the preceding Minute. No. XXI. Minute of a Secret Committee of Correfpondence, the i8th March 18 12. No. XXII. Correfpondence with the Right Honorable Lord Vifcount Caftlereagh, noticed in the preceding Minute, viz. Letter from the Chairman and Deputy Chairman to the Right Honorable Lord Vifcount Caftlereagh, dated 3d December 1803. (59-) A 2 Letter 270654 1^ •a: ( 4 ) Letter from the Right Honorable Lord Vifcount Caftlereagh to the Chairman and Deputy Chairman, dated the 20th December 1803. Letter irom the Chairman and Deputy Chairman, to the Right Honorable Lord Vifcount Caftlereagh, dated 7th July 1804. Letter from the Right Honorable Lord Vifcount Caftlereagh, to the Chairman and Deputy Chairman, dated the I2th September 1804. JHo. XXin. Minute of a Secret Court of Diredors, held on Wednefday the i8th March i8iz. No. XXIV. Letter from the Deputation to the Right Honorable Lord Vifc9unt Melville, dated the 18th March i8i3, noticed in the preceding Minute. No. XXV. Letter from the Deputation to the Right Honorable Lord Vifcount Melville, dated the 19th March 18 12, alfo noticed in the preceding Minute. No. XXVI. Minute of a Secret Court of Diredors, held on Tuefday the 24th March 1812. No. XXVII. Letter from the Right Honorsible Lord Vifcount Melville, to the Chairman and Deputy Chairman, dated the 21ft of March 18 12, noticed in the preceding Minute. No. XXVIII. Obfervations on the Hints fuggefted by the Deputation of the Court of Direc- tors, the 3d March 18 13, adverted to in the foregoing Letter. No. XXIX. Letter from the Right Honorable Lord Vifcount Melville to the Chairman and Deputy Chairman, dated the 23d March 1812, alfo noticed in the Minute above- mentioned. PAPEES, &c. No. I. At a Secret Committee of Covrefpondence, the 5th Odober 1808. T>EAD a letter from the Right Honorable Robert Dundas to the Chairs, dated No. I. the 30th September, defiring to afcertain the opinion of the Court, as to the propriety and expediency of bringing forward, in the next feflion of Parliament, the Secret Committee, lubject of renewing the Company's Charter. ^ ^^- '^°^ The Committee having deliberated thereon, agreed on the fubllance of an anfwer» tc be further £onfidered at their next meeting. ■» Mr. Dund»s*» Letter. No. II. Letter from the Right Honorable Robert Dundas to the Chairman and Deputy Chairman, noticed in the preceding Minute. Gentlemen, _ _ Melville Caftle, 30th September 1808. No. II "nr^HE propriety and expediency of applying to Parliament for a renewal of the pri- vileges of exclufive trade enjoyeti by the Eafl India Companv, with fuch modi- fications as may be deemed neceiiary, and for the continuance of the fyftem of go- vernment in the Briiilh Territories in India on its prefent bafis, but with fuch amendments, alfo, as the experience of its eiFeds may appear to demand, having lately been the fubjed of frequent confideration and difcuflion, you will probably concur with me in opinion, that it is advifeable now to afcertain, whether the Court of Direftors are defirous of agitating the queflion at prefent, and of fubraitting it, in all its details, to the early confideration of ParJiament. I haye the honour to be, Gentlemen, Youi* moft obedient and humble fervant, (Signed) ROBERT DUNDAS. To the Ghairman and Deputy Chairman of the Eafl: India Company. No. in. At a Secret Committee of Correfpondeitce, the isthOdober i8o8. ^^GREED to the following Draft of an anfwer to the letter of the 30th ultimo, Nc m, from the Right Honorable Roba-t Dnndas. ' Sscret Committee, (.Secret.) 12 Oft. 1808. Sir, Eaft India Houfe, 12th Odober 1808. chairman and WE now propofe to do ourfclves the honour of replying to your letter Deputy'* Ltuer. of the 30th of iaft month. From the communications we have at different times had with the Members of the Coui t of. Direct- .rs, we are well affured it is the general fenfe of that bodv, that it will be for the intereft of the Public and the Companv, that the Charter fliould be (59) B early No. III. •Chairman and Deputy's Letter. ( 6 ) early renewed. Convinced that this is their opinion, and apprehenfive left incon- venience might be produced, by fetting this important fubieft afloat before it -was in fome degree matured, we havt not tlioiight it neceflary formally to relort to the Court for a declaration of their judgment upon the queftion you are pleafed to propofe to us ; but we have, in order to obtain Ayhat we conceive to be, with the knowledge we before pofl'eiTed, fufficient warrant to us to give an anfwer to your preliminary enquiry, laid your letter before a Secret Committee of Correfpondence : and we are authorized to ftate it to be their opinion, as .it is our own, not only that the interefts of the Public, as well as of the Company, will be beft confulted, by continuing the prefent fyftem of Indian adminiflration, but that it is material the Charter fliould be fpeedily renewed. With refpeft to any modifications which you or His Majefty's Government may have it in contemplation to propofe, we Ihall be happy to be made acquainted with them, and to bring them under the moft ferious conlideration of this Houfe. We can at prefent only flate, that we trull there will be no difpofiiion to introduce any .change, that would alter or weaken the main principles and fubftance of the prefent fyftem, which, in the opinion of the Company, is eliential to the due management and prefervation of Britifli India; and that, with refpeft to minor pohits, as far as they may be realiy compatible whh thofe effential objefts, the Court will not be influenced by any partial views to withhold from them the fair confideration due to them. Glad that you have feen it proper to bring forward this weighty fubjeft, and defirous to be favored with your further communications upon it, as foon as may fuit your convenience. We have the honor to be, Sir, Your moft obedient humble fervants, (Signed) EDWARD PARRY, The Right -Honorable Robert Dundas, CHARLES GRANT, SiC. cic. &c. No. IV, At a Secret Court of Direflors, held on Wednefday, the 7th December 1808. No. IV. T^HE Chairman laid before the Court Minutes of a Secret Committee of Corre- Secret Court, 7 Dec. 1808. fpondence, held the 5th Oftober laft Letter from the Right Honorable Robert Dundas to the Chairs, dated the 30th September laft, referred to in the Minutes above-mentioned ; Minutes of a Secret Committee of Correfpondence, held the 1 2th Oclober laft 4 and Draft of a Letter from the Chairs to Mr. Dundas, dated the fame day. It was then, on a motion, refolved unanimoufly. That this Court approve the pro- ceedhigs of the Secret Committee of Correfpondence, of the 5th and 1 2th October, and the Letter to the Right Honorable Robert Dundas of the laft-mentioned date. No. V, At a Secret Court of DireGors, held on Friday, the i6th December 1808. No. v. JVJiNUTES of the 7th inftant were read and approved. Secret Court. Draft of a letter from the Chairman and Deputy to the Right Honorable Robert /6 Dec. 1808. Dundas, offering fome fuggeftions of a general nature, as the principal foundations on which a new agreement between the Public and the Eaft India Company may i>e placed, was read and unanimoufly approved, being as follows, viz. SiA, ( 7 ) Sir, Eaft-India Hou'e, the i6th DeccmbenSoS. IN confequcnce of a conference which wc lately had the honor to No. V. hold with you, we had hiid before the Court of Direftors the letter which you were pleafed to write to us, under date the 30th September laft, on the fubjeft of renewing Chairman and ■the Company's Charter, tof!;ether vvith tlie aniwer which we returned to that letter, '^"^^ * "'"' on the 12th Odober following ; and we are now intruded by the Couit to Rate to you, that they approve of that anfwer, and are ready to enter with you, through the medium of their Committee of Correfpondence, into a confideration of the va- rious objeds to which it may be proper to attend, and bringing forward fo im- portant a meafure. At the prefent momeni: it would, in the opinion of the Court, be premature in them, to proceed to any detailed ipecification of tJiofe objefts, to which it may- be proper, on the part of the Conipany, to attend, or to anticipate any difcuflions, which it may be the wifii of His r-.lajefty's Minilters to propofe ; but the Court beg leave to offer fome fuggeftions of a general nature, as the principal foundations on which a new agreement between the Public and the Eaft-lndia Company may be ;|)laced. iff. The fyftem by which the Legiflature has continued to the Company the government of the territories acquired by it in the Eaft, with regulated monopoly of the trade, has been held iy the mofl; eminent perfons converfant with that quarter and its affairs, to be the moft expedient, both for the toreign and domeltic interests of this country. Under it thofe territories have been improved, and the fecurityand ■happinefs of the vaft population they contain have been fignally increafed. It is alfo a fyftem which eftablifhes falutary checks for the excrcife of the authority lodged in this country over the Indian adminiftration, and for all the local details of that ad- miniftration, in its politic:'!, judicial, financial, and commercial departments ; and provides with fmgular ielicicy for a fucceffion of a body of able and honorable European fervants, who yield in general charader and utility to no clafs of public funfti'jnaries under the Empire. In Hke manner, the conftitution of the Indian army has proved itfelf calculated to produce a body of officers of high mihtary fpirit, and of very diftinguifhcd fkill and conduft. The Court, therefore, trufls that no riaterial chivnge in this fyftem ; — no change which would afFe£l its principles or ini- pdir its efficiency, will be propofed. 2d. In this cafe, it will be unnecefTary to enter into any difcufTion of the right of the Company to the territorial pofTeffions ; a right which they hold to be clear, and muft always maintain, as flowing from their acquifition of thofe territories, •under due authority, and after long hazards and vicifTitudes, and great expenfe, 3d. The fituation of the Company is, at this time, very different from what it was at the laft renewal of the Charter, in 1793. European war, with hardly any incermiffion, through the whole of the period that has fince elapfed, has exceedingly encreafed the expenfes, and reduced the profits of the Company at home ; and has likewife enlarged the fcale of expenfes abroad ; where, nioreover, wars with the Native Powers have been repeatedly carried on, to the vaft accumulation of the Indian debt, now advanced from eight million ftcrhng, at which it Itood in 1793, to about thirty-two millions. Without meaning at all to advert, in this place, to the quef- tion concerning the policy of ibme of thofe wars with the Princes of India ; it is fafe and proper to affirm, that they were not, in any degree, direfted by the Executive .Body of the Company, but proceeded from caufes which that body could not con- trol. As, in confequence of all the events which have happened fince the vear J 793, the benefits intended to the Proprietors of Eafl-India Stock, by the Charter then paffsd, have not been realized ; fo the Court truft, that in the formation of a new C.hajter, due care will be taken to fecure their proper ihare of advantage in any future amelioration of the Company's affairs, and elpecially that no meafure will be adopted, which can have the effect of reducing the value of their capital ftock. The dividend on that ftock, which is only equivalent to the legal intereft of monev, is all that the Proprietors have ever received from the united fources of Indian revenue .and Indian commerce, whilfl the country has been enriched by the long contiiiued influx of private wealth, and raifed in the fcale of nations by the poll ical importance of the Indian empire. 4th. The No. v. Deputy'* iicUer. ( S ) 4th. The Hquiddtion of the Indian debt is, on all hands, agreed to be a mea- fure of indifpcnfable neceflity. From the magnitude to which the debt has now rifen, and the circumftances of theprefent unexampled time, the aid of the Public will pro- bablybe neceflary to the attainment of this moil defirable objeft. For the aid that may thus be afforded, the Court conceive that fufiicient means of reimburfement from the Indian territory and revenue may be found ; and the arrangement of a plan, forthefe purpofes, might, as the Court conceive, form a very material part of the yrovifions of the new Charter. 5th. To apportion duly between the Public and the Company the militaiy ex- ■penfes of the Indian empire, is another meafure now become unavoidable. For wars ■growing out of the Indian fyftem, or out of fources purely Indian, the revenues and •other means of the Company were long made to fufifice, including even the charges of occafional attacks upon the Indian fettlements of Eurorean nations ; but the in- fluence of European war has, in the prefent protradted period of hoflility, extended itfelf more and more to India, occalioning the expenfe of various diftant expeditions, and the encreafe of the military eftabhihment, particularly in the European troops of his Majelty, which, from being twenty years ago only a very few regiments, now amount to above twenty thoufand* men, and thofe of the molt expenfive defcription of troops compofmg the military force of Britifli India : nor is at all improbable, that from the avowed defign of France to invade our Indian pofleflions with great armies by land, it may be neceffary iUU largely to augment our European force in that quarter. For a war of this defcription the Indian revenues, it unincumbered with debt, would be very inadequate. It would be an European war for European objects ; a ftruggle between Great Britain and France, on the foil of India, for the main- tenance and fupport of their power in Europe. For fuch an objed, to which the national funds only are commenfurate, the national funds undoubtedly ought to pro- vide^ .and as we know that, in this, we (late only what your own mind has already perceived and approved, we the more confidently hope, that in a new Charter proper attention will be paid to the due regulation of fo important a concern. 6th. As the early renewal of the Charter will ferve to flrengthen the hands of the Company in the ti-anfacfion of their affairs, and improve their credit, fo its renewal, for the like period as the prefent one run, and from the Time of its expiration, would conduce to the fame ends ; and the Court are not aware of any objection to the propofition of this term. We have the honor to be, Sir, Your moft obedient humble fervants, (Signed) EDWARD PARRY, The Right Honorable Robert Dundas, CHARLES GRANT, &c. &;c. he. No.VL Secret Court, 13 Jan. 1809. Mr. Diindas's Letter. No. VI. At a Secret Court of DireSors, held on Friday, the ijth January 1809. Letter from the Right Honorable Robert Dundas, dated the 28th December lad, to the Chairman and Deputy, in reply to their letter of the i6th December, was read, viz. Gentlemen,- Downing Street, 28th December i8o8« IN fubmitting to your confideration fuch obfervations as have occurred to me on your letter of the 16th inftant, it is neceffary that you fhould undeiftand them to be merely preliminary., in contemplation of future difcuiiions, and by no means as the refult of any plan or projefted fyftem, matured in concert with His Majefty's confidential Servants. It will depend on the judgment which the Court of Directors may form on the propriety or neceffity of adhering to the prefent fyftem of their Indian trade and adminiftration in all its parts, whether 1 fliall be enabled to hold out to them any expeftation,- that their application to Parliament for a renewal of the Company's Charter will meet with the concurrence of Government. Ilhall Mr. Unndai's Lei It r. ( 9 ) lihall follow the order adopted in your letter, in rcfped to the fubjefts which you No. VI, have particularly mentioned, and Ihall offer fome additional remarks on any other important branches of the prefent fyfteni, in which alterations may probably be deemed indifpenHibly necelTary. ift. Concurring in fubfrance with the propofition contained in the firfl: article, I fiiall not enlarge upon its details. I have not yet heard or read any arguments againrt the continuance of the fyftem under which the Britifli Pofleffions in India are governed, of fuffieient weight to counterbalance the practical benefits which have been derived from it, in their increafed and increafmg profperiiy, and the general fecurity and happinefs of their inhabitants. It is polTible that the fame efFetts might have been produced under a government immediately dependent on the Crown ; but for the attainment of thofe objedts, the experiment is, jit Icaft, unneceffary, ;md it miglit be attended with dangers to the Conftitution of this Country, which, if they can be avoided, it would be unwife to uncounter. Any alteration, therefore, which may be fuggefied in tliis part cf the fyftcm, will probably be only in its details. It may, however, be deem.ed advifable, to extend the controuling authority of the Board of Commiilioners to fuch proceedings of the Court of Directors in England, as are im- mediately conneiSled with the govenuTient or revenues of the Company's territorial poflellions in India, more efpecialiy, if the fuggeflion contained in your fourth article fhould be adopted. 2d. In the view which I have already taken of the propofition contained in the pre- ceding articie, it is certainly unneceffary to difcufs the qi-ie'lion of the Company's ' right to the permanent poflefiion of the Biitifli territories in India. It is impofllble- ■ that this right fliould be relinquiflied on the part of the Public, or that a ciaiin can be' admitted en the part of the Company, to the extent which has fome times been main- tained, and to which you feem to have adverted in the fecond article. 3d. It is equally impoflible to acquiefcein all the reafoning, though I am perfe£lljr. " , wilhng to concur in the conclufion deduced from it in the third article. I think!' it very defirable, that ro meafure fhould be adopted, in the renevv.Tl of the Charter^ which would have the effect of reducing the value of the capital ftock of the Eafl-^"* India Company, and that due care fliould be taken to fecure their proper Oiai-e of advantage, in any future ameliorauon of their affairs ; but as the law has regulated rhe mode in which thofe affairs, at home and abroad, fhould be admiailtered, I cannot enter into tlw; ditlinction which is ftated in this article, and which I have met with on other occafions, as to the equitable claim of the Company to any remuneration from the Public, or other benefit, on account cf wars, or other* events which, as reprefented in your letter, did not origin-ate in " the Executive " Body of the Company, but proceeded from caul^es wliicii that Body couid not *' contruul." It would he permature, in this flage of the difcudion, to enter into any details, as to the proportion of benefit to be derived by the Company or the Public, refpec- tively, from ar.y future amehoration in the fla'.e of your finances ; and any contingent expectation of that nature mufl, at all events, be poltponed, till a large portion of the Indian debt has been difcharged. 4th. The liquidation of that debt is undoubtedly a meafure of indifpenfable ne- cefTity, not only to the Coriipany but to the Public. If wc were now called upon to difculs the ri^^ht of the Public to the territorial revenues v.'hich have been obtained in India, either by cefhon or conqucfi, it would be impoflible to relieve the queflion from the fair claims of the Company and their creditors to a reimbuifcment of the expences which have been incurred, and the difcharge of the debts which have been contrafted, in the acquifition and m.aintenance of thofe pofTcfiions. Entertaining, that opinion, and convinced that the liquidation of the Indian debt, in the molt fpeedy and effectual mode, would be a merfure of mutual intercft and advantage, I do not fuppol'e that your fuggeflion in the .fourth article would be objeded to by Government, provided the necefTity, or at leafl the expediency of fuch an inter- Tor .that pmpofe. 1 need not remind you, however, that any fuch aid from the (590 C Public { 10 ) NoAl. Public will be ahavailiflg, and the relief afforded by it will be temporary and deluTive, , unlefs by the zealous exertions of your Governments abroad, and the minute and T t't'-r ^ * detailed invefligation and unremitting attention of the Court of Diredors, the or- "" ' dinary expenditure in India, including the interefl: of debt, fliali be brought within the limit of your annual income. The mofl: fanguine expeclafions of a refult even more favorable, and of a large furplus revenue above your ordinary expences in time of peace, have recently been conveyed to you by Lord Iviinto; but I trufl; that the Court of Directors will not be induced by thofe hopes, however well founded, to relax in their exertions. Every item of thofe, or any other eflimates, which the Court may exhibit, muil be llriclly fcrutinized and compared with the actual refuhs of former years, and with the deiailcd account of any reductions which may have been ordered or carried into effedt. ^.t'ii,.5th. I can have no hefitation in acceding, with fome limitations, to the principle for which you contend in your fifth article. It is abfiu'd and unrcafonable to fuppofe, that the Eafl India Company, out of tbtir own revenues, can long maintain a contefl againll: the power of France, aided by the greater part of Europe and a large portion ot Afia. If the principal theatre of the war between European nations is to be transferred to Hindoit;ni, it mufl be fupported, to a confiderable extent, by European refources ; and if our empire in India is an objeft worth preferving, this country muft contribute to its defence, againft any attack of the defciiption which we have been taught to expeft. The extraordinary expences incurred in the iiecelfary preparations for fuch a warfare, or in the adiual contefl, ought not, in {uilice, to be impofed as a burthen on the Company alone, even if they were able to .fu (lain it. 6tb. lam not aware of any reafon for extending the duration of the Charter beyond fuch a limit, as, with the unexpired term, will be equal to the period £;ranted in 1703 ; but I ilate this merely on the firfl confideration of the fuhjccl ; and if the general queftion is to be dilcuffed, I fliall pay due attendon to auy fuggeflions which the Court may think it right to offer on that particular point. Having thus adverted, at greater length perhaps than was neceffary, to the various topics introduced into your letter, I fhall proceed to itate fuch oblervations as appear to me neceffary to be fubmitfed to the confideration of the Court of Diredors, for the purpofe of enab!J!;g them finally to decide, whether, under the circumdances of the prefent fituation of the Company's affairs, and of the ex- pectations which will probably be entertained by the Public, and fandioned by Government, they will adheie to their intention of applying now to Parliament for a renewal of the Company's Charter. It will readilly occur to the Court, that whenever an opportunity is afforded of deciding in Parliament on the propriety of continuing in the Company any privi. Jeges of a commercial nature, it will be important to confider, whether the I'yftein Citabliihed by the Ad of 179';, for the trade of private individuals between Britain and India, has anfvvered the eXpedations, or fulfilled the intendons of the Legiflature. It is wholly unneceiTary for me, at prefent, to enter into any detail of the various difcuflions which have taken place on that fubjed. The arguments on both fides of the queftion mufl be familiar to the Court, and the opinions of thofe perfons who have turned their attention to it have, in all probability, been long fince 'fixed and fettled : it is fit, ther€fore, that the Court fhould now underltand dilHndly, that I cannot hold out to them the expedation, that His Majefly's Minifters will concur in an application to Parliament for a renewal of any privileges to the Eall-India Company, which will prevent liriti& merchants and manufadurers from trading to and from India, and the other countries within the prefent limits of the Company's exclufive trade (the dominions of the Empire of China excepted), in ihips and veffels hired or freighted by themfelves, inflead of being confined, as at prefent, to ihips in the fervice of the Company, or licenfcd by the Court of' Diredors. la the detail of any legiflative provifions which it might be expedient to enad on this fubjed, it would be abfolutely necefl'ary to guard againll the abufes which would arile, f om facilities thus afforded to perfons attempting to fettle and refide in the Britilh territories, without a licenfe from the Company_, or without the fandion or knowledge of the local Governments. There ( " ) There are vai-lous other points to which it would alfo be neceffaiy to pay due No. VI, attention, not only as being important to the Company and to the general trade , of the country, but elFential to the fecurity and eafy ■ colleflion of the publfc Mr.Dundat'g revenue. It would obvioufly, however, be piemature on this occafion to enter into any further detail, and I have confined myi'elf to a mere fetement of the general propofition. - •'': ■ Another point, which would probably be deemed indifpen fable, is an altera- -tion in the military fyltem in India, for the removal of thofc jeaioufies and divifions, •which have unfortunately been too prevalent, between the ditl'ercnt branches of the '-military fervice in that quarter, and which mult, at all times, be highly prejudicial to the public interefl ; and for the correction of the anomalous fyftem of divided refponfibility, which prevails at prefent iu this country, in every thing that relates to .the military defence of India. The only eiJeftual remedy for thcfe evils will, pro- bably, be found iji arrangements for confolidadng your Indian ai-niy witii the King's troops, four. Jed upon the plan fo ftronTly recommended by Lord Cornwallis, with fuch nicdificalions as the actual conllitution ofyt)ur fervice may render ex- pedient or neceflai-y. Thefe arrangements need not be attended wiih any altera- ■ tion in the fyftem of promotion now in operation among the officers of the native branch of the fervice, or with any diminution (they might more probably • produce an increafe) of any other profeflicnal advantages which thofc officers now enjoy; neither would they, in any degree, interfere with the general authority now poHefled by the Court of Directors and the Governments in India over all His Majefty's forces ferving in thofe parts, or with their controul over ail difburl'ements ■of a military nature. I am, moreover, not au'are of any reafon againft continuing in the Court of Direftors the nomination of all cadets deftined to hold commiffions .• -in the Indian armv. Having thus ftated to you, for the confideration of the Court of Diredors, the .principal points to which I was defirous of drawing their attention upon this occa- sion, I have only to alTure you, that it will be the earnefl defire of His Majefly's Government, to fugged to Parliament fuch a fyftem only, as fhall be conformable to the principles on which the regulations of 1784 and 1793 were founded, as will fecure to this kingdom all the benefit that can pradicably be deiived from its trade with our poiTeihons in India, and to the natives of thofe countries a •government, and an aJminiilration of laws, fuited to their cuftoms, habits, and prejudices, and confiftent with the Britilh character, and which fliall atfo be ilrong and efficient, without adding unneceifarily to the authority of the Execu- tive Government at home, or increafiug, to any dangerous extent, the influence of the Crown. I have the lionour to be, Gentlemen, Your moft obedient humble fervant. To the Chairman and Deputy Chairman (Signed) ROBERT DUNDAS. of the Eaft-India Company. Draft of a propofed letter, in reply, prepared by the Committee of Corre- fpondence, was alio read, Refolved, That the faid draft be taken into confideration on Tuiffdar hext, th^ 17th Inftant. ■*■-'. ^f .r ' No. VII. At a Secret Comt of Dire-Slors, held on Tuefday, the 17th January 1809. n^HE draft of a propofed letter to Mr. Dundas, which was read the 13th inftant. No. VII. being again read ; ' Refolved unamioufly, That • this Court approve the faid letter fj'jIn.^.'S No. VIII. ( 12 ) No. VIII. Letter from the Chairman and Deputy Chairman to the Right Honor- able Robert Dundas, noticed in the preceding Minute. Sir, Eaft India Houfe, 13th January 1809. ^° rn-Aj^E letter which you did us the honor to addrefs to us, on the 28th of lafl Chairman and month, on the important fubjeft of a renewal of the Company's Charter, Deputy's Letter, has received the mod ferious confideration of the Court of Direftors, and we are, by their unaminous relolution, inftruded to fubmit to you the following anfwer to It. The Court having, in the letter which we had the honor to addrefs to you on the 1 6th of laft month, thought it fufficicnt to fl^etch the outlines of thofc prin- ciples and propofitions which fnould, in their opinion, form the bafis of a new Charter, and the reply you have been pleafed to make to it, declaring the fame intention of dating obfervations merely preliminary, and '• not the refult of any " plan, or projeded fyftem, matured in concert with His iMajefty's confiden- " tial Servants," our prefent letter will abftain from any difcuflion of minor points, thnfe efpecially relating to the proceedings of the Court of Dire6lors with fervants of the Company returned from India, to which article your letter is underftood to allude ; and likewife from feme other points, connefted with the exercife of their authority at home, which may be found to require revifion and modification. Neither can it be neceifary to go now into the fubjeft of Indian Expenditure, although it is impoflible, after the notice taken of it in your letter, to omit faying, that the Court feel with the livelieft folicitude, how indii- peufable it is to reduce that article far below the income, and are determined to ad accordingly. The attention of the Court will, tlierefore, be confined, at prefent, to two propofitions ol the highefl im.portance, contained in your letter ; the one fuggeif ing fuch an enlargement of the trade of individuals with Briiilh India, as Ihall admit into it indifcritninately the merchants and the fliips of this country ; and the other the transfer of the Company's Indian army to His Majefty. If thefe propofitions had not been accompanied by the declaration with which your letter concludes, they -would have filled the Court with the deepeft concern ; but you are pleafed to clofe the whole of your obfervations with an aifurance, '• that it will be the earneft defire " of His Majefly's Government to fugged to Parliament fuch a fyftem only, as Ihall *' be conformable to the principles on which the regulations of 1784 and 1793 were *' founded, as will fecure to this kingdom all the benefit that can prafticably be derived *' from its trade with our polfeiTions in India, and to the natives of thofe countries a *' government and an adminillration of laws, fuited to their cufloms, habits, and " prejudices, and confident with the Britifli charafter, and which fhall alfobedrong " and efficient, without adding unnecefiarily to the authority of the Executive *' Government at home, or increafing, to any dangerous extent, the iiifluence of " the Crown." Satisfied, by this declaration, that His . JVIajedy's Government underdand the intereds of this country and of Britifn India too well, to intend any alteration that would fubyert or endanger the fydern by which thofe vail polTeflions have been acquired, governed, and improved, and by which alone they can be held, to the mutual benefit of their immenfe population and of the paramount ftate, the Court mud, of courfc, believe, that the propofitions whicii have jud been quoted, are fuppofcd to be compatible with the continuance of that fydem, or reducible to a confidency with it. Thefe fuppofitions the Court are now called upon to examine, and they will endeavour to do lb with the rcfpecl: due to the authority with which they have to ticat, with the duty which they owe to their condituents, and with that regard for the intereds of their country, which they do not intend, nor feel them- lelves required to fink, in fupporting the integrity of the prefent Indian fydem. If either of the two propofitions, refpeSing the Indian trade and the Indian army, were to be afted upon, in the fcnfe which the terms of it feem obvioufly to convey, the Court have no hefitation in declaring their decided convidion, that it would ellec^ually fuperfede and dedroy, not merely the rights of the Ead India Company, ( »3 ) Company, but the fyftem of Indian adminiftiation, eflablinied by the Acts of 1784 No. VIII. and 1793 ; and with refpccl to the latter propofuion, for the transfer of the native ■ army, it appears to be incapable of any modification, which would not dill make the Chairm-.n and overthrow of the prefent fyftem the certain confequence of it. The Court will take ^^P^'X" ^'^^'^f- the liberty to flate the rcafons on which thefe opinions are founded, with as much fulnefs as the bounds of a letter, and the difpatch neceffary at this period, will permit, premihng only, that in the time and fpace to which they muft now confine themfelves, many things, belonging to the confideration of ooth iubjefts, muftbe omitted. With refpeft to the Private Trade, the Company are not governed by narrow confiderations of commercial profit or commercial jeaioufy ; and, in faft, the Indian trade, as rai objefi of gain, has gradually ceafed to be of importance, either to the Company or to individuals. Fhe admiflion into it already accorded to Britilh rcfidents in India, with the prodigious increafe of the cotton manufactures of Europe, the changed circumilances of the European Continent, and the almofl incefTant wars which have prevailed for the la[l fixteen years (warsflill without any near profpect of termination) have reduced the value of that trade to a very low point. The Court are actuated by a thorough perfuafion, that the unlimited freedom, for which fome perfons have, of late years, contended, would have political confequences more inju- rious to the power of this country and of Britilh India, than the advantages anticipated by fanguine minds, from an enlargement of the commerce, could compcnfate, if thofe advantages vvere to be realized ; and tliat, moreover, the expeclation of fuch advantages is unfounded, refulting from general prefumptions, which are contradiifted by the nature of the Indian people, climate, and produtlions, and by the experience of more tlian two centuries. In any fcheme of intercourfe, purely commercial, between this Country and India, the leading objects mult be to export as many as poffibleof our home manu- faftures, and to import thofe commodities, which would either beneficially fupply our own confumption, or the demand of other countries, European or Tranfatlantic: iind it is, no doubt, imagined by many perfon?, that if the trade to India were per- fectly free, thefe objeds could be attained, in a degree extending far beyond its prefent fcale. The ardour of hidividual enterptize, it will be thought, could find out channels, which the fettled routine of a C'onipany cannot explore, and carry on commercial operations more economically and expeditioufly than I'uits with the habits of monopoly, whillt our moit active rivals in the Indian trade would thus be beft counteratted. The prefent times, it will alfo be faid, peculiarly demand new attempts and difcoveries in commerce, and His Majefty's Government may very naturally .vvifl], at fuch a crifis, to procure for the country every polhble facility for the Ex- ertion of its commercial fpirit, and the employment ot its commercial capital. But before a change in its principle altogether novel, and obvioufly connefted with .national mterelts 'of the highelt importance, is adopted, it ought to be feen, not only on what rational grounds the expectation of advantages entertained from it reftj, but to what confequences fo material a change might expofe the country and its Indian dependencies. Now, with refpe£t to the benefits fuppofed to t>e derivable from opening the trade with India, it is, in the firft place, to be obferved, that no material enlargement, if any enlargement at all, is to be expelled in the exports of our manufattures to that quarter. The records of the Company, for two centu-ies, are filled with accounts of their endeavours to extend the fale of Britifh products in India, and of the little fuccefs which has attended them. The French, Dutch, and other European nations tiading thither, have equally failed in introducing the manufactures of Europe there. This was not owing to their trading chiefly in the form of Companies : the Americans, who within the lait twenty years have entered into the Indian commerce, and traded largely, not as a Company, but by numerous individuals, each purfuing his own fcheme in his own vi^ay, in which courfe no part of the Eaft is left unexplored, carry hardly any European m.anufaclures thither, their chief article for the purchafe of Indian goods being filver ; and fuch has been the ftate of the trade from Europe to India fmce the time of the Romans. This ftate refults from the nature of the Indian people, their climate, and their ufages. The articles of firft neceinty their own country furnifhes, more abundantly and more cheaply than it is poflible for Europe (59.) D . to ( 14 ) No. VIII. to fupply them. The labour of the gre:\t body of the common people only enables •— them to fubfilt on rice, and to \vear a flight covering of cotton cloth ; they, there- Chiirman and {q^q^ cjin purchafe none of the fuperfluities we offer them. The comparatively few Deputy s Letter. .^ better circumftances, reftrifted, like the reft, by numerous religious and civil cuftoms, of which all are remarkably tenacious, find few of our commodities to their tafte, and their climate fo diffimilar to ours, renders many of them unfuitable to tlieir ufe ; fo that a commerce between them and us cannot proceed far upon the principlo of fupplying mutual wants. Hence, except woollens, in a very limited degree, for mantles in the cold feafon, and metals, on a fcale alfo very limited, to be worked up by their own artizans for the few utenfiis they need, hardly any of our ftapic com- modities find a vent among the Indians ; the other exports which Europe fends to India being chiefly confumed by the European population there, and fome of the defendants of the ear'ly Portuguefe fettlers, all ot whom, taken coUeQively, form but a fmall body, in view to any quellion of national commerce. What is here faid does not relate only to thofe parts of India where the Company liave fettlements or fa£tories,but to all the (hores that embrace the Indian Seas, from the Gulfs of Perfii and Arabia to the Eaflern Archipelago. Many advocates for a free trade may fuppofe, that in fo vaft a range, numerous pofitions, favourable for the vent of European commodities, are ftill unexplored ; but they are not aware, that in the Britifh Settlements, which thcmfelves extend on the weft to Cambay, and on the €aft to China, there are a number of merchants, native and European, who carry on what is called the coafting trade of India, with great fpirit, fending their fnips to every mart, infular or continental, where any profitable commodities can be either fold or bought. At all thofe marts, European CDmmodities have been tried by the enterprize of individuals. The little demand that has been found for them has been fupplied ; and refidents, fettled in India, can carry into fuch parts the trade in European commodities, which it is now open to them to receive from this country, with mote facility and advantage than merchants fettled in England. To thefe facls and obfervations, arifing from the nature and circumftances of the people and countries of India, one remarkable argument may be added, furniflied by our own experience at home. In the Charter of 1793, provifion was made for the export of Britifh nianufaftures to India, by any individuals who might choofe to em.bark in that trade. The Company were required to find them tonnage to a certain extent, which has always been allotted at a rate of freight cheaper outward, as well as for the returns, than the Company themfelves pay, or as the Court think, than private fliips could furnilh it. But, in all the time that has elapfed fince, very few applications, and thefe 10 a finail extent, have been made, for leave to export the woollens, metals, and other ftaples of this country, on private account, the chief applications having been for the freight of wine, for the confumption of Europeans : and this is not properly a Britifli production, nor is it fo much an increafe in the trade, as a transfer of it to I'nc private merch mts from the commanders and officers of the Company's Ships, parr of whofe advantage ufed to arife from being the carriers of this commodity. All thefe circumftances, to which other corroborations might be added, the Court truft will fully evince, that the entire opening of the Indian trade to the mer- chants of this country would not, in reality, extend in any confiderable degree, if at all, the confumption of Britilh manufaftures. Let it be inquired, in the next place, whether the adoption of fo great a change in our Indian fyftem, would be followed by the difcovery of fuch new and valuable produdions of the Eaft, as v/ould ferve materially to augment the trade of this country with the Continents of Europe and Ameiica ; for, with regard to the fupply of our home confumption of Indian commodities, it cannot be aflerted, that the im- portations already made by the Company and individuals do not abundantly fuffice for it, or nny not, at any time, be extended to the exigencies of the market ; in which, it m?.y be noted, that a preference is given to the cotton and filk manufactures of our own country, and to fome of the tropical produftions brought from our Weft Indian Colonies. Nor can it be aflerted, that new adventurers in the Eaftern trade, fitting out from Great Britain, could, with any profit to themfelves, furnilh the home confumption on cheaper terms than it is now fupplied ; for both the Com- pany, ( 15 ) pany, and Britifli individuals refident in India, muft: have an advantage over fuch No. VIII. adventurers in the provifion of goods there (Britifh refidents in the Freight alfo), and yet, of lare, the great Indian ftaple of cotton piece goods has been a lofing d^ utX Lcuer article in this country. Now, as to the produ£tions of India valuable for foreign commerce, the trade of Europeans, of different nations, to all parts of it, in the courfe of the laft three cen- turies, may well be prefumed (o have left little for difcovery in that way. The Por- tuguefe, who, in their early time, ipread themfelves along all the fliores of the Eaft, explored every confiderable part of it, and they were followed by the Dutch, Englifli, and French Companies, with their numerous eftabiiihments, fome of which extended inland to the Upper India. But the modern European merchants, refident in the Eaft, who have long been the chief navigators and adventurers in what is called the coalting trade, have become well acquainted with the commercial capacity of every region walhed by .tl-.e Indian feas ; fo that many countries fuppofed here to be little known, becaufe little vifited by the (hips of Europe, are iamiliar to them, and whatever Articles thofe countries furnifh, valuable for the commerce of the Welfj are already conveyed, through the medium of private or foreign trade, to Europe. The chief commodities fuited to the European market, which India has hitherto been found to produce, are fpices, pepper, drugs, fugar, coffee, raw filk, faltpetre, indigo, raw cotton, and above all, cotton manfacfures of fmgular beauty and in cndlcfs variety. Thefe hft have, as already intimated, formed, from time immemo- rial, the grand ftaple of India ; but from the rife and excellence of fimilar manu- fadfures in Europe, particularly in our own country, and from the general impo- verifhment which wars and revolutions have brought upon the Continent of Europe, with the Obflrucfions oppcfed, in much the greater part of it, to our Commerce, the Confumption of the fine Fabricks of India has confiderably decreafed, and_ it .- is not likely that it can be reltored to its former ftandard. Spices, fugar, and coffee,' have been furnifhed chiefly from the Moluccas and Java, Dutch iflands not in our poffefTion, nor, in a commercial view, worth the expenfe of conquering and keeping them. The cinnamon of Ceylon, now ours, may be brought, in fufficient quantity for the fupply of all Europe, in one or two of the Company's lliips. Pepper is a very lofing article. Sugar has been of late imported from our territories ; but the neceffary expenfe of conveyance from fo great a diftance, prevents it from being profitable, and it can be much encouraged only at the expenfe of our Weft India colonies. Raw filk and indigo, now produced in great pcrfeftion in Bengal and its dependencies, have been brought to that ftaie, by the expenfe incurred, and the fupport afforded by the Company. Both are articles occupying little fpace, in pro- portion to their value. The factories where the former is coUedfed and prepared are in the hands of the Company, who have, in the courfe of many years, eflabhfhed them with great labour and expenfe. They can furniih not only all the raw filk this country requires, but much for the confumption of the Continent, if it was poffiblc to bring it there into competition with the raw filk of Italy, and the tonnage already employed by the Company is quite fufhcient for its importation from India. The indigo produced in Bengal and the adjacent Provinces isequal, probably, to three- fourths of the demand of all Europe, and may eafily be raifedto the whole demand ; but the manufatlure of this article is entirely, and the trade in it chiefly, in the hands of individuals, who need and require no Ihipping from this country, except v/hat the Company provide, to convey to Europe, all that Europe can confume of it. Salt- petre, furnifhed only from Bengal, is, for political reafons, prohibited to foreigners, and exported exclufively in the fliips of the Company ; for the fame realons, it could never be prudent to allow the private {hips of this country to carry it away at pleafure. Where then is the fcopefor the admiffion of new fliipping and new adven- turers, without limitation, into the trade of India with Great Britain ? In general, it may be obferved, that the commodities which have hitherto come from that coun- try, in a ftate prepared for ufe, fuch as the great ff aple of cotton piece goods, being articles of luxury, can have only a limited confumption, arid that the demand for them could not be encreafed at all in proportion to the number of new competitors that lliould enter into the trade. The lame niiiy be faid of all kinds of fpices and drugs, which, from their nature, have a limited confumption ; and, with regard to the important articles of raw filk and indigo, which require a further preparation before ( i6 ) "No. Viri. efore they are ufed, there is already abundant provlfron made for their impor-tation, -; to the utmoft extent of demanc'. Chairman and • JDcputy's Lciter. There remains then to be confidered, of all the commodities above enumerated, only the raw material of cotton ; and to this may be added another of high importance, which India is in time likely to produce abimdantly, namely, hemp. Now, with refpedt to the former of ihefe, the Company have formerly imported it, and per- jnitted private merchants to do fo ; but it was found, that the cotton of hidia could not enter into competition with that produced nearer home, in the Brazils, the Weft Indies, and North America. Of late, fmce the interrupdon of our trade with the laft mentioned country, the Company have themfelves commiflloned cotton •from India, and have been willing to encourage individuals to export it from thence ; but that it can fupport a competition with the cotton of Georgia, when the Ameri- can embargo is taken off, or become an article of extenfive demand in this country, ■fupplied with it fi-om fo many nearer quarters, is not very likely. The culture of hemp .in India is yet in its infancy. A change in the circumftauces of Europe may check it ; but if it is not checked, years mult elapfe, before the quantity produced can form a confiderable article of exportation. And with regard to both thefe commodities of cotton and hemp, it is to be obferved, firft, that cargoes for Europe cannot be compofed of them only, fome other, more ponderous for its bulk, being neceffary for dead weight, and fugar, almoft the only article of this nature that India can fupply, muft generally be rather a loling one : fecondly, it is to be ob- ferved, that the private fliips ready to be employed in India, mult be abundantly Sufficient for the fupply of ail the tonnage that can be required for thefe articles, which could hardly abforb any very large amount of capital. Thus, then, it is alfo ap- parent, that the country and produ'ilions of India aflbrd no new field of importance for the commercial enterprize of the merchants of Great Britairu But were it indeed othervi'ife, where, in the prefent circumftances of the European Continent, could new commodities, imported into this country from India, find a vent, when many of thofe already made, and of articles which the Continent ufed to take off, remain in our warehoufes .'' And hence may appear the inapplicability of that argument, which has lon;etimes been urged in favour of enlarging, or rather opening the Indian trade to individuals, " that they fiiould be allowed to bring " home the furplus produce of India v/hich the Company did net require." There can be no room lor additional importations, vvhtn the ordinary fcale proves too large. But in the ufe of this plaufible plea, refpetting furplus produce, there was always a great fallacy. It ftcmed to imply, that there was a ftock of commodities in India which continually remained undilpoicd of, whereas nothing is more evident, than that the produfliioas of any country will be regulated by the demand, and that no agiicalturifts or minufadurers will go on from year to year to produce that ior which they have no fale. The term, as connefted with the Company, might alfo convey the idea, that they were the only purchafers in the country ; whereas, at that very time, Britifli refidents and foreign nations had the privilege of exporung goods to the weftern world, and there was a great coafling and internal trade from one part of India to another. But the argument tor permitting individuals to export the furplus produce, included fully, though not profeffedly, the principle of tranfplanting Bridffi capital to India, in order to raife produce there ; a principle which, it may be thought, this country has already carried fufficiently far in its other diftant dependencies, "and which could not be appacd to India without poli- tical cocfequences. But it has been alledg d, that the refufal of the Company to make a conceffion, which appeared to them to be claimed on unfound preinifes, and to be pregnant with danger, threw that trade, which might have been brought into the Thames, into the hands of foreigners, particularly the Americans, whofe great progrefs in the Indian trade, of late years, has been charged to an erroneous policy on the part of the Company. Nothing can be more miftaken than the whole of this ftatement. Several European nations having from the native fovereigns of India the right of pofl'elhng fettlements and carrying on trade there, a right which we had confirmed, we could not interrupt the exercife of it whilll they remained at peace with us ; nor, therefore, divert from them whatever portion of the trade their means enabled t.hem to embrace. And, .with refpeft to the Americans, they owe their advance- ment- ( »7 ) ment and fuccefs in the Indian trade to the treaty made with them by our Govern- No. VIII. nient in 1794, to the belligerent ftate of Europe fince that time, and, above all, to ~ the neutral charafl:er they poflefled, which enabled them to navigate more cheaply, jv*'^."^'^*"i /„ ^ more expeditioufly, as well as more fafely than our merchants or the Company ^* could, and to fupply many parts of the European Continent and of South America, to which our fhips had no accofs. I'hefc, with tlie increafe of tlie cf)nfumption of eaftern commodities among themfelves, are the true caufes of the growth of the American trade with India ; and even the abolition of the Company's privileges would not have transferred the fliare they acquired of it to our merchants, becaufe it could not have Icfiened the advantages under which the Americans then carried it on, nor have gained us either the fupply nf their internal demand, or admiffion to many ports which Vv'ere open to them. What ths Company could do, in the way of regulation, to reduce the inequality between the American traders and our own iperchnnts, you know, Sir, was cflefted, as fcon after the expiration of the treaty of J 794 as His Majefty's Government thought expedient. Among the fpeculations of the prefent day, the idea may perliaps be fuggefted, of carrying the produftions of India directly to the porrs of Portuguefe and Spani(h America ; and eagernefs for relief from the prefl'ure which our commerce now feels, may be ready to make fo j/reat a facritice of the naviojation lav/s. But fuch ^•^„u „ •- w^ — ...», ..„..^^ meafure would eilentially exclude the mother country from being the meJium and emporium of our Indian trade ; and whiKt it ferved to enrich Imlia, rather than Britain, would facilitate the progrefs of the former to independence. If, however, fo dangerous an innovation were not adopted into our commercial code, it is alto- gether probable that EnoliOi fliips, admitted without hmitation into the Indian S-^as, would take the liberty of failing to thofe markets which woukl be thought the molt promifing ; fo that, in effeft, the opening of the Indian trade v/ould be not folely or chiefly for this countiy alone, but for other, perhaps for all parts of the world. Having thus fhev/n, that the opening of the Indian trade to the fubjeds of Great Britain could not materially increafe, either the export of the manufadlures of this country, or its commerce in the produ£tions of India, it will next be proper t& confider, what the effefts of the propofed change would be upon the Ealt India Company and upon Britifh India. And, in the firft place, it would, in fubftance and in form, entirely abolifh the qualified monopoly which the Company (till enjoys of the Indian trade. The ad- miflion of all private merchants, at their pleafure, and of their Ships, into the trade, would make it as perfedly free as the trade to our American or Weft Indian colo- nies. There would, as to India, be an end of all exclufive privilege of trade. This would not be any modification of the A& of 1703, but ai^ effential departure from it. That a£l permitted only the export of Britifh manufadtures, and intended only to provide for the returns to them, and for the remittance, in goods, of Britifli fortunes fi'om India ; both on the fhips of the Company. The propofed meafure muft, in the nature of it, make the trade from India not merely a vehicle for the remittance of fortunes acquired there, or the produce of BridOi manufaftures, but a general trade; and what is a ftill more radical change, inftead of a limited amount of tonnage not incompatible with the Company's fyftem, it admits all fliips, without any iinntation, or opdcn on the part of the Company : it throws all India open to thofe /liips, and thus fets afide the Company from being the fole channel and medium of the trade, through their own {hipping, or fliipping engaged by them, which completely divefts them of the lalt remnant of exclufive privilege in that trade. It would be no argument to fay, that in a trade, by which they now^ gain little, they might admit, without much facrifice, the reft of the commercial world to fliare. The lofs of the Indian monopoly, fuch as it was left by the A61 of 1793, would lead, by no flow procefs, to the entire fubverfion of the Company, both in their commercial and political capacity, and of that fyftem which the Legiflature has ap- pointed lor the government of Britifli India, of v.hich fyftem the Company forms an integral and effential part. If the Indian trade were thrown <"pen, fhips would, at firft no doubt, fwarni into it, and there would be a ruinous competition in the markets, both abroad and at (59.) E home. ( i8 ) 1^0. ^in." home. Gootls would be enhanced in cod there, as well as deteriorated in quality: the felling prices at home, already too low, reduced ftill lower, and the market Chairman and Qverflocked. '1 his was the effeft, in ferae nieafure, produced by throwing open the OJeputy s citer. ^^^^^ .^ ^^^ ^.^^^ ^^ Oliver Cromwell, who, after the experience of a few years, revived the Company. The fame efleft follov/sd from die collilion of the Old and New Companies, in the beginning; of the lail century, which forced them to unite, and their union received the fanilion of government. It is not fufficient to fay, on this head, that increafed demand abroad will produce increafed fuppiy, and the diminilhecl price of goods at home increafc the fales, fo that things will, at length, in both countries, hud their due level. From the nature of the Indians and their divifion into cades, it is not lb eafy among them, as in Europe, to meet an increafed demand bv increaied production ; and it is flill lefs eafy when they can fubfid by furnifuing things of low or ordinary quality, to make them aim at excellence, which the fuppofition of increafed fales at hi^ne would require. But of fuch an increafe, in tile prefent and profpective ilate of the trade in Indian imports, enough has been above faid to (hew the improbability ; and before that i'uppofition could, in any cafe, be realized, the ruin of the parties immediately embarked in the trade (a trade fo diftant, requiring large capitals, and making flow returns) might be completed, with the ruin alio of the Company, whofe edablifliments would have been deranged by this great change. If the change itfclf did not ocrafion the fall of the Company, the difappointmcnts which the private adventurers could not fail to experience would, by them, be charged to the influence of the remaining privileges of the Company, a-nd they would not reft until the whole were extinguifhed. But it may be ob- terved here, and it is an obfervation which might be urged more formally and fully, that although the Company have the juflefl claim to thofe territories, which the powers veiled in them by the laws of this land, the ability of their fervants, and the hazards they have encountered, have enabled them to acquire, and that this right was never quedioned, until the acquifitions, and confequently the merit of making them, became great ; yet that, in a more peculiar fenfe, all the principal marts and fadories of Britilh India are their property, acquired in their purely commercial period, either with their money or by grants from the native princes of the country, and that the power of admittiiTg fettlers and traders to them itriftly belongs to the Company. One part of the prefent fydem, and a beneficial one for all parties, is to have only one place of fale for Indian goods, that is London ; to make all fales by public auction at dated periods, and thefe fales to be regulated and conduced by the Company. With the propofed enlargements, it would feem hardly pofhble to continue that praftice. Dilferent tov/ns would have their own fales, at their own times. Individuals might frequently chufe to difpofe of their goods by private bargain. The general refort of buyers which the fales were wont to bring to London, a refort often produttive of other commercial, fpeculations, would thus be at an end ; and the benefit derived from public auftion, when that was'the fole mode, would be lodj in the midd of many private fales and competitions : but to difpofe of the goods of the Company by private negociation, might open a door to many abufes, which would render that mode totally unfuitable for their bufinefs. The Company, with fuch a competition, could not go on to purchafe the goods of India. With the ceffat ion of their Indian trade, their Indian fubordinate faftcries, which have been reared in the courfe of more than a century, and which are the feats of the bed manufaftures produced in the country, mud be abandoned, and all the commercial branch of their civil fervants be thrown out of employ. Their pur- chafes of goods at home, for the Indian market, mud alfo ceafe, with the circula- tion of money which has enabled them to fupport their credit in England, and to provide for the payment of bills, which it has been long and necellarily the pratticc to draw on them from India ; a prafticc which, under fuch a change of circum- fiances, could not be conthmed : and, in general, the great aid which the political affairs of Britifh India have, at all times, derived from the commercial credit and, refources of the Company, with the reciprocally beneficial co-operation of the dif- ferent parts of the Company's fydem, mud thus be deRroyed. In like manner, the Company mud ceafe to employ the numerous clafs of excellent ihips they have engaged for the Indian trade, fhips condruded for warlike defence as well as for commerce, and rendered expenfive only, by being neceffarily dedined and fitted for the ( 19 ) the performance of political fervices. Thofe fliips the Company have contrafted to No. VIII. employ for the terra of their duration : there is a large capital embarked m them, ■- and they can be employed in no other way than in that for which they were built. ^ ''^'^"J^" ^^""^ When they can no longer be kept up, the means of conveyance they have hitherto "^^ '^ lo well afforded for troops, and the large fupplies of naval and military (lores an- nually fent to India, muit be loft. But there is no reafon to believe the evils would end here. The monopoly of the China trade, which it is propofed to continue, would not be fafe ; Britifli Ships, when permitted to range at pleafure through the Indian Seas, however interciifted from that trade, would attempt to participate it in either by reforting to it as the country Ihips do, under color of carrying on the coafling trade,forby other means obtaining teas, and the other produftions of China, at the moft convenient Indian ports. Love of gain, difappoiutments in other ways, the hope of impunity would ftitnulate their conductors to break through reftrictionsimpofedin this country. Britifii fubjeds, who now navigate the Indian Seas, fail from fome one of our eftabliflied fettlements there, and are amenable to the laws of it : it would not be fo with men hav- ing no domicile in India. In ranging the numerous iflands and coate of the Eaftern Seas, where they would be unknown, and whence they could not be follovv-ed to England by complaints, the probability of impunity might tempt them to commit upon the weak natives accuftomed to repofe conlidence in Engliftanen, atts of in- juftice and licentiouinefs, which v/ould wound the national charafter, raife complaints throughout India, and fet the people again ft us. In this manner the Portucuefe formerly rendered themfelves odious in the Eaft, and contributed to the downfall of their own power. In China, where the efl'ccts of fuch a fpirit would be moit to be feared, we could exercife no authority, furlicient to controul men not within the reach of the Indian Governments, or to defeat their fchemes and affociations for elud'ng the laws. Pradice would emboldem them, and time increafe their numbers. It is hardlv conceivable they would not venture upon irregularities which would offend the ChiuLfe Government, who, whilft the delinquents efcaped to England with im- punity, would doubtlefs take fatisfaflion of the national factory, and the pride and jealoufy of that Government, alarmed by repeated inftances of this nature, from the defultory vifits of a new order of Engliflimen, iniubordinate to the reprefentatives of the nation, might determine to difmifsthe whole together. If this extreme cafe be not fuppo'ed, which however is too probable and too momentous in its confequences to be hazarded, can it be doubted, that whilft the duties on tea continue at even the fourth part of v/hat they are at prefent, private Englilh fhips adventuring to the Eaft- ern Seas will not, by means of country veffels and intermediate ports, if by no other means, procure teas, and revive the practice of fmuggling them into this kingdom.'' The confequence feems inevitable, and the fliips of our own country, efpecially if allowed to chufe their port of difcharge, as the propofed change feems to require, would -have facilities, which thofe of foreign Europe or i^merica could not command. Inthefeways, the China monopoly of the Company, reduced in its profits, would be rendered likewife infecure, and in the end untenable ; an .i the noble fleet of Ihips, employed in that trade by the Company, muft be alfo laid afide. Flow the immenfe revenue, now derived by Government from the very high duties on tea, could, under fuch circumflances, be realized, or a fubftitute found for them, may be an im- portant, and, to all appearance, a moft difficult fubjecl of enquiry. But a more ferious confequence than ail thefe woidd ftill remain. A free trade to India would, unavoidably, draw after it the refidence of numerous and continually increafing Europeans there, whatever prohibitions might, at flrft, be oppoied to thejr fettling in the country. When all reftraint to the importation of fhips and goods i s taken oft', men mult be allowed to follow their property, and to remain at the place where they land it, till they have difpofed of it ; they muft be allowed to navigate the Indian Seas, and to return to the fame place when their bufmei's calls them ; they will thus, infenfibly, and with hardly reafonable grounds for oppofition, domiciliate themfelves; nor would an unfuccefsful trade prevent them, but many would feek to indemnify themfelves on fhore for their loffcs by the voyage. The inftances of fuch fcttlem.ents will be numerous, and it will be impoffible lor any police to follow up the cafes of individuals, and continually to exercife a rigorous fyftem of e.xciufion. This has not hitherto been done, though attended ( 20 ) Is'o. VIII. attended with comparatively little difficulty ; and the attempt would foon, under the ~. new order offhin;;s, be abandoned as hopelefs. Colonization muft, in fuch cafe D^putv^s LeUtr. f°Jl*^^^'- Large conininnities ot Europeans will Urug^h for popular rights : new feelings with refpect to the mother country, new inferefts and. attachments will then fpring up ; and in a region fo. remote, fo rich and populous, and fo aceuftomcd to yield to the afccndancy of the European charadler, the tendency and proccfs of thefe things cannot be difficult to conceive. With the profpc^ of all thefe confequences, commercial and political, before the Court, it is impoffible that they, as faithful guardians of the interefts committed to their care, or as men truly folicitous for the welfare of their counti-y, which they • profefs themfelves to be, can advife their conftituents to feek a renewal of their Charter, on conditions v/hich would defpoil it of all its foiid advantages, deprive the Company of their moft valuable privileges, and incapacitate them from performing, for themfelves and tne nation, the part hiiherto afligned to them in the Indian fyftem. Such a further enlargement of the Indian trade, in favor of individuals, as may be compatible with the prefervation of thefe effential objects, the Court will, in prefent circumftaitces, certainly be difpofed to reconnnend. 'I'hey will be ready to enter into a.fcrious inquiry concerning the conceflions which may be made, without trenching ■iipon the principles edr.bhihed by the Ad of 1793 ; and they truft that the juftice iind wifdom of His IVIajelty's Minifters will not require the Company to make jeffential facrifices, for th.e lake of giving to the public what would, after all, be more an idcrd than a real benefit, and be, in other relpefts, productive of incalculable difad vantages. The other important propofition which is next to be confidered, is the transfer oT the Indian Army to the King. The reaibns afligned for this propofition ax"e, ■that an end may be put to the jealoufies and divifions which have too much prevailed, between the officers of His Majefly's army and thofe employed by the Company, and tlxat the refponfibility in the country, of providing for the military defence of India, may be afcertaiaed and flrengthened. The Indian army is the main inftniment by which the Company have acquired and retained the territorial pofleffions they have added to tliC Britifh Empire. The people of thofe countries lubmitted more eanly to an authority exercifed by means pf a body formed from among themfelves. We fought battles and governed pro- vinces as the native powers did ; and our new fubjecfs, undifgufled with the fight of a foreign conquering army, fuppofed the government to continue fubilantially the fame, and the principal change to be in the individuals who exercifed it. The con- ftitution and character which this Indian army his acquired, have been the fubjeft of jufl. admiration. Thefe have been owing, efientially, to the h.ippy mixture of bravery and generofity, of firmnefs and kindnefs, exerciled towards the Sepoys by their European officers. The fuperior lights and energy of the European charafter have directed the powers and conciliated the prejudices of the native troops ; bu; it was becaufe the officers knew the people and their prejudices well. Thefe officers had been trained up among them from an early age : the nature, the ufages,, and the language of the natives, u'ere become fan.iihar to them; and the natives, remarkably the creatures of habit, in return, from being accuftomed, became attached to them. Without fuch knowledge, however, on the part of ihe officers, they might eveiy day have revolted the minds of io peculiar a race, and have alienated them f;om our ifervice and government. An Indian military education, from an early age, is effential to the formation of a good Sepoy officer; and gradual rife in the fervice by feniority, is no lefs indifpen- iable. . In this way, the hulian army has been conftituted and rendered eminently efficient ; and all meainres, tending to' change or weaken the conllituent parts of this fabrick, arc. to be deprecated. When, excepting a few regiments of European artillery and infantry, the whole military force of Britifh India was compofed of Sepoy corps, the ofEcers of that aimy, of courfe, pofTeifed entire the emoluments .and advantages which the fervice afforded. The intruduftion of European troops ■from His Majefly's army into India altered this ftate of things. Young officers, of jio Indian experience, who had obtained their commiffions by purchafe, took rank of men of long and tried fervice:- the King's officers were thought to come -in, alfo, ... for ( 21 ) for too large a fhare of employments and advantages- To redrefs the complaliits Ko. VIII. which the Company's officers made of fuperceffions and partialities, and to give them a better fliare of the benefits of the fervice, was the leading object of Lord Coinwullis's /''''»"''^3" '"'^ Military Plan of 1794, and with him a pi-incipal motive for propofing to transfer the "'" ^ * Indian army to the King, no other prafticable means having then occurred to him. But the objed: was, in fubftaiice, attained by the Military Regulations of i 796, paflld in concert with His Majefty's Government, without that transfer, of which hisLordfhip did not revive the idea on his lalt return to India, thofe regulations having given in- creafed rank and retiring pay to the officers of the Company's army. 'Ihe caufes of complaint, however, did not entirely ceafe. To avoid the collifion of authorities, the Company had adopted the nfage of appointing the Commander in Chief of the King's troops, alfo their Commander in Chief ; and one confequence of this has been, that the Companv's officers, refident from early youth in India, poffeffing little influence in Eng- land, unknown to officers ot high rank inHisMajefty's fervic?, have thought themfclvts treated with lefs favour and diftinclion, than younger officers of that fervicft recently arrived, but better patronized. You know, Sir, that there have been indances of this fort, which the Court, with the fanftion of your Board, have interpofed to reprefs : but as long as the Britifh force in India is made up of two armies, fo differently conflituted, with fo large a portion of King's officers, the whole commanded by generals of His Majefty's fervice, there will, probably, be real or apprehended ground for the like complaints. They do not arife becaufe one army has the honour to belong to His Majefty and the other ferves the Company, but becaufe the conltitution of the two armies are radically different, and muft continue fo, whether the armies are under one head or two. The Indian army cannot be maintained without officers attached to it from an early age, and rifmg by feniority. Frequent changes of King's regiments ferving in India, and the confequent frequent arrival of young men, promoted in them by purchafe, cannot be avoided : the former clafs will be comparatively un- known to the King's commanders, the latter will have among them the connetl:ions of thofe commanders, or of men of influence in England. It is not difficult to fee, therefore, to which fide the cxercife of military patronage will lean ; and to prevent caufes of complaint, and to keep the balance even, raufl be an important objeft in the Government of India. It does not feem the way to effeft this, to put the. Indian army wholly in the power of the Commander in Chief. It is of the partiality of '• that ftation of which the Company's officers have fometimes complained; and the Court fee no reafon whatever to fuppofe, that their jealoufy and diifatisfadion would" be removed, by putting them entirely under its control : and, indeed, by placing two armies, of fuch different races and fo differently conflituted, under the fame mafter, it would feem difficult to avoid attaching the idea of permanent inferiority to that which was Indian. Nor is it a thing to be taken for granted, that the Sepoys, fo much, as already obferved. under the influence of habit, would chufe to be tranf- ferred from that fervice to which they have been always accuftomed, to one of wliich they have little experience, and that experience not always of a conciliatory kind. To place the officers of the Indian army wholly under that authority of which they have hitherto complained, does not certainly appear to be the way to render them eafy. It might, on the contrary, lead to ferious difcontent ; and though the Court would be far from countenancing that fpirit among their officers, or yielding to anv irregular exertion of it, yet it muft be faid, on the other hand, that thofe officers are a body of men who have defcrved too well of the Company and their country, to have real caufes of difcontent ; and that it would be impolitic to adopt any fyftem, likely to generate iuch caufes, either among them or the men they command. With regard to the other reafon affigned for the propofed change, the Court I 'eg leave to obferve, in the firft place, that they do not perceive the neceffary connedion between the inconvenience which is alleged, and the remedy fuggelled for it ; fince, if it were true that the queftion of refpoufibility in England, refpecting the appoint- ment of Commander in Chief, lay under obfcurity and uncertainty detrimental to the public fervice, it does not appear to follow that the Indian army ought to be tranf- ■ ferred to the King, to remedy this defect. But, in the humble apprehenfion of the Court, no oblcuniy hangs over that queftion. The appointment ot Commanders in Chief of the Kmg"s lorces there refts with His Majeiiy, and the officer chofen by him will, by virtue of his coniniillion, generally command the Com.pany's army on fer- vice. The appointment of Commanders in Chief for the Company's army is placed, (59-; F^ by.. ( i2 ) No. VIII. by law, in the fivti inftanec, in the Court of Directors, bur w'nh a power veftcd in IHs Majcfly to annul Inch appointments. This neceiTarily points to an aereenient Chaiiir.an and between His I\l;ijeily's Governn-.ent and the Court of Diredois, in refpcd to thofe Deputy'. Letter, appointments, and the Couit are not aware, that they have, on any occafion, ufed the fliare of power left to th.eni by t!n» arrangement, for the exerciil* of which they feel that they are refponfiblc, to the prejudice of the public fervice. Ihey mull, at the fame time, humbly cxprefs their opinion, that the law, as it now Hands, is wifely conceived, fince it d:es not halve the refponfibiliiy, but double it, making both His Majedy's Government and the Court of Directors fully anfwerable for the appointment cf the Company's Commanders in Chief: and if it fhould ftill be faid, that, in point of fafl:, the ftleclion of a Coinniander in Chief for His Majefty's forces maybe rendered difficult, by reluftance, en the part of the Court, to accept of the lame officer for the command of the Company's army, it may be juftly replied, that they make a facrifice to the public intercft, in agreein^■ that the Commander in Chief of His Majefi.'s {hail alfo be the Company's; and when he is not only to command their army, but expeds to be made a Member of their civil and political Government, it cannot be deemed unreafonable, that they Ihould poffefs the right of fatisfying themfelves as to his competency for filling thofe high offices : neither is it, as they think, to be (hewn from theoretical reatoning, or by an appeal to facts, that the Icrvice will fuffer, or has fullered, by their alfertion of this right. But the flrongefl: objedions of the Court to the propofed transfer arife from political confiderations. They conceive the continuimce of the Indian army in the hands of the Company to be effeniial to the adminiilration of the civil, financial, and political affairs of Britifli India, according to the prefent fyftem. The Company's Government has hitherto been refpefted, both by its own fubjefts and foreign powers, becaufe it poffeffed a great mihtary force. Organizing this force, enlarging or reducing it at pleafure, appointing its officers, rewarding merit, puniffiing the unworthy, providing for the comfortable retirement of the veteran foldier and officer, and, in fhort, exercifing all the funftions of a governing power over a very numerous body ot men of high mihtary fpirit, it has poiVeffed all the refpeftabihty and the benefit of their attachment and fidelity. Looking upon the Members of the civil Government and the body of civil fervants as belonging to the fame mafter with themfelves. and as the fiilt order in the Itate, they have paid a wiHing obedience to their authority, and have thereby upheld their internal adminiilration and their con- iequence abroad. The introdudion of certain King's regiments has been under- ftood, as ii was interided, to be merely in fupport of the public interefl under the exiiliijg fyftem; but if the Company were to be diverted of the whole of their military force and power ; if they were to be no longer mart ers of a fingle re- giment, Tio longer capable of entertaining any foldiers nor of giving one fubaltern's commiffion ; if the immenfe body of men, who have fo long looked up to them, were to be transferred from them, the people muft confider their power as fallen and di-avving rapidly to a clofe. Continuing llill to their Gr-vernments a general controul over the employment of the army, and to t'neir civil fervants the internal adminiftration of their affairs, would give the people no affurance to the contrary. Thofe ervants, in the dil'charge of their different funclions of judges, magillrates, colletlors, could not exptcl the fame refpect and fupport, either from pubhc opinion or the attachment of the native troops, as when all looked to the fame head for protecficn, patronage, and reward. Indeed, to make fo wide a reparation of the military from the civil power ; to take away the organization, the interior regulation, and with thefe, the patronage of the army, from the local Government ; to place all thofe powers in the hands of the Commander in Chief, fubjed only, in the exercifc of them, to an authority at the dillance of half the globe, v.'ould throw the means and the temptation of a dangerous afceudancy into the fcale of the military department, which conftituted by His Majefty, might eafily be led to flight the . civil fervants of a meaner mafter, and their chance of difla it reJrefs Among the. natives of India it has been ufual to confider the military power, and thofe . ■poffeiling it, as pre-eminent ; and they fee, in fome examples of the prefent day, that power, under the idea of affifling the civil and political adminiftration, actually controuling it. The Company's Government, in fhort, lowered and over- fliadowed m this way, would not, in the opinion of the Court, continue to poffefs . the authority nec!.ffciry For the proper adminiftration of the affairs of that great empire J ( 23 > empire; and it might then be conceived, that a further change only could fupply No.VIIL what was defedive. ' . CKairman and But this is not the only way m which the meafure in queltion appears to the Deputy"* Letter. Court to be pregnant with danger. It propofes to place in the entire difpofal of the Crown, a regular army, amounting to one hundred and forty thoufand men, commanded by above three thoufund European ofEcers, having a great variety of places of honor and emolument ; and ail the vafl: patronage attaching to fuch an .ariny (faving the nominati.^n of cadets) would, mediately or immediately, be under the influence or controul offomeof the Members of His Majefty's Government. This would be a fignal departure from the fpirit and letter of the Ads of 1784 and 1793, a profeffecl principle of which was, that the Indian patronage, civil and military, fliould be kept entirely out of the hands of the fervants of the Crown. It is not for the Court to enlarge upon a propofition Co momentous ; but they beg leave, with the utmoll deference, to ftate, that they would deem it a dereliction of their duty, to which no confideration could induce them to fubmit, to recommend any meafure of this defcription to the adoption of their conflitucnts. Knowing however. Sir, your concern for the promotion of the public interclt, a concern which we have frequently witneffed, the Court ftill flatter thcmfelves, that the con- fideration of the renewal of the Company's Charter, a meafure which they believe to be for the intercfl of the nation as well as of the Company, will go on without your infifiing on this propofition, or any further on the other which has been above dii'cuiled, than may be really compatible with the prefervation of the prefent Indian fyflem. We have the honor to be. Sir, Your moil obedient humble fervants, (Signed) EDWARD PARRY, The Right Honorable Robert Dundas, CHARLES GRANT. &c. &c. &c. No. IX. At a Secret Committee of Correfpondence, the 28th February \Sog. n[^HE Chairman and Deputy Chairman reported to the Committee, than in confe- No. IX. quence of an invitation from the Prefident of the Board of Commiflioners, they had yeflerday an interview with him, in which he difcourfed with them on the prefent Secret Committee, ftate of the negotiation for the renewal of the Company's Charter. He inquired, i?o9> in the firft place, whether the Company would have occafion to apply to the Public for pecuniary aid in the courfe. of the prefent year. 'I'o this inquiry the Chairman and Deputy anfwered, that from an eflimate lately made up of the Company's re- ceipts and payments, till the month of January 1810, it appeared probable they might be able to do without any public afliuance till that period ; but that this could not be pofitively affirmed by the Chairs without further and more certain invef- tigation. Mr. Dundas then faid, that if the Company were not under a neccffiry ot coming to Parliament this feflion on the fcore of their finances, he thought it would be expedient to delay the agitation of the fubjeft of the Chu; ;er in Parliament tiil next feiLon, becaufe the Committee of the Houfe of Commons for inquiring into the ftate of the Company's affairs, recently re appointed, being about to examine into all the great branches of thofe affairs, which would neceffarily engage the public atteiuion on the renewal of the Charter, it would be expcfted by the Houfe, that the reports of that Committee fliould be fubmitted to them, before the queftion of the renewal was brought forward, and from the number and weight of the fubjeds to be invefligated, it would be inipraff-licablc to report upon them, foon enough to afford fuificitnt time to the Houfe to go through the confideration of them in the r^maii.der of the fcflion : it was,, therefore, Mr. Dundas's opinion, t!:at it would be advifable to poffpc.ne the agitaiion of the queftion until next ftilion ; but before he fixed his determination, he wilhed to receive the fcntiments of the Chairs and;, i the; r 24 ) Jvo. IX. the Committee of Correfpondence on this important point, and thofc fentiments would — ■- probably influence him in fliaping his anfwer to the lafl letter of the Court, dated Secret Compiittee, j^^jj January i5og, on the renewal of the Charter. The Chairman and Deputy 18 F«b, iivc9. (Chairman beg leave to ftate, that they, in reply, exprefled their opinion to be clearly in favor of proceeding with the bufinefs ot the Charter this fefiion, if it fhould be praflicable for the Committee of the Houfe to make the reqiiifite reports in due time. The Committee having deliberated on this communication, are of opinion, firft, that it will be neceffary to form as accurate an elfimate as poflible of the home finances of the Company for the current year ; fecondly, that it is very defirable the renewal of the Company's Charter fliould be brought forward in Parliament this fellion, even if the Company ihould ftand in need of no pecuniary aid ; but, thirdly, that if the Select Committee cannot prepare their reports in due time, and His Majefty's Miniiters deem it proper to wait till next feffion, the Court muif, of courfe, acquiefce ; yet in the wifh and hope, that if any circumflances fhould occur in the courfe of the prefent feffion, favorable to the agitation of the meafure, it may flill be brought forward ; and if not in this feffion, as early as poflible in the next } to which end the Committee will be very ready to proceed with the Prefadetit of the Board of Commiflioners in the difcuffions already commenced. • No. X. At a Secret Committee of Correfpondence 5th December 1809. No X T?^"'^^ ^^^ approved draft of a letter to the Right Hon. Robert Dundas, propofmg '_J_ . that the difcuffions between him and the Court, on the fubjeft of the Charter, Secret Committee, be refumed. from the point at which they were left by the letter from the Chairman 5 Dec. 1809. ...and Deputy, dated J3th January laft. ■."»?: No. XI. No. XL Letter from the Chairman and Deputy Chairman to the Right Honorable Robert Dundas, noticed in the preceding Minute. (Private) Sir, Eaft India Houfe, 5th December 1809. "pROM the conference the Chairs had the honor to hold with you on the 13th of February, on the fubjeft of a renewal of the Company's Charter, we were given Chairman and to underftand, that although His Majefly's Miniflers did not deem it expedient to Deputy's Ltticr. bring that fubjeft under the confideration of Parliament in the feffion then pre- ceding, it might, in their opinion, be proper to prepare for tlje agitation of it in the • next following one. We now, therefore, by the Authority of the Committee of Correfpondence, whom the Court of Diredors have empowered to condud the details of negocia- tion on the fubjeft in queftion, beg leave to ftate to you, that, in their ophiion, it is defirable the difcuflion concerning the renewal of the Charter fliould be brought on in the enfuing feffion, both on account of the general fituation of the Company's affairs, and jdfo on account of the particular prellure on their finances (arifing chiefly from the transfer of certain fums of the India debt to England; which we have already had the, honor to reprefent to you and to Lord Harrowby , and which renders neceffary fuch an application for public aid, as may of itlelf, be e.xpeded to lead to a general confideration of the Company's affairs. We ( 25 ) • • We .thet'efore take the liberty to propofe, that the difcufllons between you and the Court, on the fubjed of the Charter, be refunied, from the point at which they -were lefc by the letter the Chairs addrcfled to you, under date the i ith January laft. We have the honor to be, Sir, Your moft obedient humble fervants, (Signed) CHARLES GRANT, The Right Honourable Robert Dundas, WILLIAM ASTELL. &c. &c. &c. No.Xr. Chairman a id Deputy'* Lcltcr. No. XII. At a Secret Court of Directors, held on Friday the 3d January i8i;. n^HE Chairman laid before the Court, a copy of a letter from Lord Melville to the Chairs, dated the 17th of lail month, upon the fubjeft of continuing to the Eafl India Company, for a further term, their privileges of exclufive trade and the government of the Britifh territorial poffeflions in India, in which his Lordlhip adverts to his letter addrefled to the Chairman and Deputy Chairman, on the 28th December 1H08, and to their reply, dated the 13th January 1809, ^""^ adds, that If theCourt ofDiredors are willing that the (hips, as well as goods of private merchants, may be admitted into the trade with India, under fuch reftriftions as may be deemed neceffary, he fliall be ready to difcufs with the Chairs all the other details of the fyllem: and his Lord (hip alluding to two points of confiderable importance, adverted to in the above mentioned letters, viz. the (irft relating to the transfer of the Company's army to the Crown, upon which fubjed circumftances may poflibly fuggeft the ex- pediency of adopting other meafures, for promoting the difcipline and efficiency of the army in India ; and the fecond point, being the Indian debt, upon which fubjeO: his LorcKhip obferves, that the period he (hould hope is arrived, for providing, out of the Company's own refources, without any pecuniary aid from the Public, the means of enabling them to fatisfy all the Claims of their Indian Creditors. Ordered, That it be referred to the Committee of Correfpondence, to confid^r what reply it may be right and proper to make to the letter from Lord Melville, now- read ; and to report their opinion thereon to the Court. Ko. Xll. Secret Court, 3d Jai!. 1811. No. XIII. Letter from the Right Honorable Lord Vifcount Melville to the Chair- man and Deputy Chairman, dated the 17th December 181 1, noticed in the preceding Minute. Gentlemen, India Board, 17th December 18 11. UNDERSTANDING from you, that it is the wi(h and opinion of the Court of Direftois, that a propofition (hould be fubmitted to Parliament in the courfe of the next feinon, for continuing to the Eaft-India Company, for a further term, their privileges of exclulire trade and the government of the Britilh territorial po(re(Iions in India ; it will be nece(rary, before I can proceed with you to the difcu(rion of that queftion in all its details, that certain preliminary matter fliould be again brought under your confideration. In a letter which I addreffed to the Chairman and Deputy Chairman, on the 28th December 1808, the outlines of fuch a fyftem, in regard to the trade between this countiy and the Eafl Indies, were (tared, as His Majelty's Government at that time were willing to propofe to Parliament. In a reply to that letter, dated the 13th January 1809, detailed reafons were urged, for the Court of Direftors declining to " advife their conftituents to feek a renewal of their Charter, on conditions whicJi" (59-) G (as No. XIIL Id. Melville'* Lrlter. Ld. Melville's Letter. ( 26 ) No, XIII. (as afferted by the Chairman and Deputy Chairman) " would defpoil it of all its " foliJ advantages, deprive the Company of their rnoft valuable privileges, and in- " capacitate them for performing for ihemftlvcs and the nation, the part hitherto '' alhgned to them in the Indian fyftem." I do not feel it requifite, in this ftage of thebufinefs, to enter upon a minute ex- amination of the arguments from which that couclufiou was drawn. Many of them have reference to poflible dangers, which might arife from a fyllem of trade wholly unreftrifted ; againft which liangers, however, it was exprefsly admitted in my letter, that it would be eifentially neceffary to guard. A confiderable portion of their reafoning, alfo, would lead to the inference, as a general propofition, applicable to all cafes of foreign and dillant trade, that a monopoly was more beneficial to both countries than an unreftrained commerce ; and that the facilities intended to be af- forded to private trade with India, by the Aft of 1793, were inexpedient and im- politic. There are (everal ftatements in the letter, in which I fully concur ; but it is unneceffary to advert to them at prefent, becaufe if the Court ot Dire£tors adhere to the above mentioned determination, I cannot hold out to you the lead expedia- tion, that His Majelly's Government will be difpofed to depart from the propofal contained in my letter, or that they will concur in any application to Parliament, for the continuance of a fyRem of trade, conducted under all the reltraints now impofed upon it, and for the permanency of which the Court of Direftors have fo flrenuhufly contended. If they are willing, on the other hand, that the fhips as well as goods of private merchants, may be admitted ijito the trade with India, under fuch reRriftions as may be deemed neceffary, 1 Ihall be ready to difcufs with you ail the other details of the fyftem. There are two points, however, of confiderable importance, which are adverted to in the above-mentioned letters, and oa which it may be advifable that 1 fliould liatp.to you fhortly whatocoiu sto me. ■ I'he firfl: relates to the transfer of 'the Company's army to the Crown ; a meafure which has been frequently fuggelted by perfons iutimately acquainted with the mili- tary concerns of the Company, and whofe opinions are entitled to great confideration. It is ■ impoffible; however, not to admit, that feveral weighty objeftions to fuch a change are iiattd iii the Letter cf the i 3th January 1809. Events which have fince occurred, mufl:, alio, have an iniluence in deciding this queftion, and may poffibly fugged; the ex;pediency of adoptini^ other meafiu'es for promoting the difcipline and efficiency of tlie army in India. Further difcuflion on this fubjed may be deferred till a future opportunity, and any- arrangements which may be deemed proper can be carried into eiTecl, without having recourfe to fpecial legiflative enaftments. The other point to which I allude, is the propofition for enabling the Company to meet the heavy demands which were then expected, and which, to a certain extent, have fince come upon them, by the transfer of their Indian aebt to this country. All uncertainty, as to the poffible amount of thofe demands, is now removed ; and the period, I Ihould hope, is arrived, to which, during Ibme years, we have looked forward with anxiety, for providing out of the Company's ovm refources, without any pecuniary aid from the Public, the means of enabling them to fatisfy all the claims of their Indian creditors. Tlie {anciion of Parliament will probably be necef- fary for cahying into effe£l: any arrangement for that purpofe ; and if the Court of Direftors are willing that thefe difcuflions, on the renewal of the Charter, fliall pro- ceed, in fo far as releites to the queftion of the trade, on the principle to which 1 have adverted, I fhali be ready to receive from you any fuggeftions you may have to offer on the fubjecl of the debt, and on the mode by which you propofe that funds for its liquidation ila;ill be provided. I have the honor to be, Gentlemen, ^our mofl obedient humble fervant. The Chairman and Deputy Chairman (Signed) MELVILLE, of the Eafl-Indir. Company. No. XIV ( 27 ) No. XIV. At a Secret Court of Diredtors, held on Friday the 28th February 1S12. TTHE Chairman from the Committee of Correfpondence laid before the Court the draft of a reply to Lord Melville's letter of the 17th of December laft, which was read : Ordered, that the fame be taken into confideration to-morrow. No. XIV. Secret Court, 28 Feb. 1812. No. XV. At a Secret Court of Directors, held on Saturday the 29th February 181 2. 'T'HE Court proceeded to take the propofed draft of a reply to Lord Melville's letter into confideration. No. XV. Secret C'Hirt, ap Feb. 1813. No. XVI. At a Secret Court of Direilors, held on Monday the 2d March 1812. 'TpHE draft of the propofed reply to Lord Melville's letter, of the 17th December ■*- laft, was unanimoufly approved. Refolved, 1 hat a Deputation of this Court be appointed to wait on His Majefty's Minilters, in coafequence thereof ; and that the laid Deputation do confift of the Chairman, Deputy Chairman, Charles Mills Efq. the Honourable William Elphin- ilone, and Edward Parry Efq. No. xvr. Secret Court, 2 March 181Z. No.XVil. Letter from the Chairman and Deputy Chairman to the Right Honor- able Lord Vii'count Melville, with its Enclofures, noticed in the pre- ceding Minute. My LoRi), Eaft India Houfe, 4th March 18 12. ''E duly received and laid before the Court of Directors your Lordfliip's letter of the 17th of December laft. We truft that the great Importance of the Matter contained in it will explain, in a fatisfadtory Manner, to your Lordftiip aiid to His Majefty's Government, why an Anfwer has not been prepared at an earlier Period. By that. letter \ve think it is to be underftood, that His Majefty's Minifters have made up their minds, not to hold out to the Eaft India Company an Expeftation of theia- being difpofed to concur in an offer to Parliament of any propofition for the continuance of the prefent fyftem of trade with India, at the clofe of the term limited by the Act of 1793, which is now nearly expiring, without a previous confent, on the part of the Eail India Company, as the bafis of fuch concurrence, that the trade with India ftiall be extended to the ftiips, as well as goods of private merchants, under fuch rellriclions as may be deemed neceffary ; but that His Majefty's Minifters are of opinion, with refpeft to the fabjed cf the Indian army, that the idea which was hild out in your Lot dfliip's letter of the 28th of December 1S08, relative to the transfer of the Company's army to the Crown, will not be contended for ; and that, upon thefo grounds of underftanding, your Lordfliip will be prepared to receive from the Court of Dire6lors any fuggeftions which they may have to offer on the fubjefl: of the Co.iipany's debt, and upon the mode by vvhic'n the Court propofe that funds for its liquidation fliould be provided. From the terms in which the firft propofition, refpc£ting the trade with India, has been brought to the notice of the Court, they conceive that it is intended, on the No. XVII. Chairman and Deputy's Letter. ( 2S ) No. XVII. the part of His Majcfty's Government, to preclude the Court from any further agitation of a qucftion already fo fully difcuffed. The Court, indeed, cannot avoid Cliairir.an and coufidering this as the obvious interpretation of your Lordfhip's letter refpeding a Deputy I Letter. pgjjj[-^ upon wliich, perhaps, it might be out of their power to offer any arguments, not contained in the letter of the Chairs to your Lordfhip of the 13th of January 1809. Whatever opinion, therefore, the paft experience and daily obfer\'ation of the Court may have jullly induced themjto form upon this fubjecl:, or however incontro- vertible they may believe many of the arguments to be, that are made ufe of in the letter of the Chairs to your Lordfliip, to which they have referred, they think it their duty to ftate, that if this alteration be made an indifpenfable condition, on the part of His Majefty's Minifters, of -their propofing to Parliament, the renewal of the Company's privileges, the Court v.ill, though reludiantly, ofi'er this meafure to the coniideration of the Proprietors, with whom alone the power refls of confenting to fuch a fundamental change in the conilitution of the Company. But they mud, at the fame time, beg leave, in the mofl unequivocal manner, to declare their con- viftion, that though this alteration may, and probably will, be attended with many ferious inconveniences to the whole frame oi that Government, which, whatever opinion may h^ve been formed of its imperfections, has, beyond all difpute, acquired and maintamed for Great Britain a paramount, and almoft undifputed fovercignty in the Eaft, it will not give to the nation thofe commercial advantages, which it has been the habit of many of the commercial interelts of this Country to con- lemplate^ . The Court, however, hope it will be underflood by your Lordfnip, that they have entertained this opinion, not upon the narrow, and now juilly exploded ground, •which they are forry to fee has been imagined by your Lordfliip to exift, that the Company have ever confidered a monopoly to be more beneficia', in all cafes of " foreign and diftant trade, than an unreftrained commerce," but upon the con- vi<51ion v/ith which they have been imprefled, that an exclufive trade with India is 'the only one really applicable to the maintenance of the public interefts with that country, interwoven as that trade is with the very frame and integrity of thofe pof- feflions, and refting, as it does, upon many highly important confiderations, which are, in no wife, applicable to other commercial eitabliihments. • . In fupport of thefe opinions, the Court beg leave to enclofe abftraft copies of the Accounts (A and B), which have been called for, and laid before the Committee of the Honorable Houfe of Commons upon Eaft India Affairs, eftablifhed in iSoS,and .continued to the prefent time, which they imagined will afford a fair reprefentation of the trade in bullion and in goods carried on with India, as well by individuals as by foreign nations ; and thefe accounts will, they truft, eftablifli, in a con- clufive manner, the corredlnefs of the fentiments entertained by the Court refped- ing this trade. In communicating, however, thofe fentiments of reluflance, by which the determina- tion of the Court to fubmit the propofition in queflion to the proprietors of Eafl India Stock is accompanied, the Court hope it will be clearly underllood, that this determination arifes from a prefumption, that fuch military powers as are now veftcd in the Company will be left unimpaired, which can alone induce them to entertain an expeftation of their being able, in a manner fatisfactory, either for the Company or the Public, to perform the part which has hitherto been alTigned to the Company in the government of a diftant empire ; and alfo, that fuch regulations will be adopted, as will prevent the highly dangerous intercourfe of Europeans with the Eail ; and that fuch arrangements will be made, in refpeft to pecuniary matters, as will enable the Company to meet with confidence the prefent flate of their affairs. The Court alfo hope, that in the extenfion of the trade which the Company now enjoy, His Majcfty s Minifters h,ave not had in view the hazardous experiment of diirperfing, over all the ports of England and Ireland, a trade now brought, with fo much ad- vantage, both to the Company and the Public, to the fmgle port of London. If the private intercourfe with India fiiould, in future, be extended, it may natu- rally be expefted, that upon the return of peace, a number of Britifh feanien will be thrown oiit of employ ; and the Court are apprehenfive that fuch an uitercourle, carried C 29 ) carried on through the medium of Indian ftiips and Indian failors, relaxing as it No. XVII. would do the fpirit of the navigation laws, which have always been confidered to be • the bafis of the maritime flrength of this country, may be viewed by the nation Cliairman :ii.J with extreme alarm, and will probably give rife to many diforders. The Company's 1^'T"')''« I-'"*''- papers and offices might furnifli material information, by which the relation of the Indian trade with the navigation lyflem could be appreciated, and the Court, if. it Ihould be thought likely to be of public utility, are ready to have that information collected ; but without fuch call, and without prefling their reafons at length, either upon your Lordfhip or the other Members of His Majeity's Government, they will content themfelves with the declaration thty have already made of their opinion upon this fubjeft. The Court arc defirous of taking this opportunity to offer fome remarks, and to anfwer, in a curlbry manner, part of thofe put;lic accufations, which have been fo af- fiduoufly urged againft the Eall India Company, and agaudl the further continuance of a fyftem, which, they hope, will appear to reft, not upon the grounds of individual intereft, but upon the firm bafis of national advantage. Whatever opinions the Court may deliver, upon a fubjefl: in which they are maiii" fellly interefted, will doubtlefs be received with circumfpedion; but the Court think, that they may be allowed, and widi juiUceupon the prefent occafion, to sffcrr, that the leading difpofition of their minds is, to preferve the empire obtained in India to t!ie parent flate. The firft, and the mofl: prominent of the charges, which have, at various times, been brought againit ihe Company, is the repeated calls which they are accufed of having made upon the public, tor money for the profccution of ruinous concerns ; as if they had diffipated large fums in ufelels and improvident undertakings. Upon this head it may be fuflicient for the Court to obferve, that their commercial affairs (and to thofe alone was the Company's management reftriifced) have been invariably attended with fucctfs, as they are prepared to fhew, if the proof fhould be called for; and that thcfe advantages have been fufficient to allov.' of a mode- rate dividend to the Proprietors of Ea(t India Stock. Over and above this dividend, a furplus fum has been applied, arifmg from this fource, towards the extenficn of that territory, the acquifition of which has been under the immediate diredion of His Majefty's Minifters. But the Court are perfuaded, that the magnitude of the afi'airs which the Company have had to manage, has been little known and little attended to, otherwife it would, at once, have been feen, that one of the principal difficuhies with which the Company have had to contend, is a capital, not in any refpect equal to the great extent, variety, and importance of thofe affairs. The diflaurfement of the Company upon the fingle article of com- merce in goods and wares, &c. or of articles necefTary for its management, a difburfement of fums going from and returning to the Company, from one moment to another, was, at the clofc of the year 18 1 1, not lefs than about - - - ^£14,847, 678 To this muft be added, the amount of advances in India and at home, for Stores of various kinds, applicable to the purpofes of Go- vernment, and in conftant ufe for military equipments, &c. ; of cafli, arms, &c. ; and of debts due to the Company from various ftates and princes, Sec; and other articles, making at the clofe of the Indian year 18 lo, about .... 21,282,279 If to thefe fums be fubjoined the abfolute expenditure made by the Company, for the acquirement of a territory, with forts, am- munition, &c. and the aftual purchafe of many taiStories and territories, building of docks, purchafe of forefls, &c. including a confidorable fum which has been paid by them, at various times, to the Public, or difburbed for expeditions, and the maintenance of captures afterwards furrendered up to the enemy, ws. - - 15,052,170 They form altogether an aggregate of - ^■'51,182,127 (59-) " The Deputy's Letter. ( 30 ) No. X\Mr, Aggregate diiburfements brought forward - • 5^51,182,127 ~ The capital ol" the Company is :— Demi't™!" ^nt ^" money advanced by the adventurers, about - ^7,780,000 And they receive from the aid of bonds at home - 7,000,000 And from other contingent credits, at home and abroad, about » ... - 7.787»953 Together 22,567,953 Leaving a balance of - ^28,614,174 Conftituting at this raoment a permanent debt in India and in Europe. (See C.) This aggregate of ^i; 1, 1 82, 1 2 7, a part of which fum only has been employed upon the territorial acquifitions of the Company, forms an outlay, beyond the capital of the Company, of fo large an amount, as to make it more matter of wonder, how the Company have hitherto been able to carry on the concern at all, than to rendei- it extraordinary that they ihould have been conftrained, refpeclfuUy and at various times, to reprefent the urgency of their affairs, and to prefs upon the Public for the mere return of thofe funis, which had been fairly expended by the Company abroad for the public fervice ; a return which has never yef been granted to the Company, to the extent to which, in juftice, it ought to have reached. In every war which has taken place fince the Company became poffeffed of the territorial acquifitions, large fums of money have been expended in capturing the fettlements of the French, Dutch, and Danes, and heavy expenfes incurred in keeping the fame, till the political views of the Public occafioned thefe fettlements to be reftored, in return for other objeds, in which the Company had no particular intereft. The Company have alfo been compelled to pay part of the expence of capturing and maintaining an ifland, afterwards referved for theexclufive benefit of the Crown ; to difburfe a confiderable fum for a force, of which the Public have derived all the benefit at home ; and even to contribute to the Egyptian expedition, the whole of which expenfes the Company have always thought ought to have fallen upon the State. This large and neceflary outlay, in faft, now conftitutes the fource of the Company's embarraffment. A confiderable part of the money railed in India upon periodical loans, to meet this outlay, has (as your Lordfliip well knows) by the terms of thefe loans, which made them payable, if required, in England, and in confequence of a general reduction of intereft from eight to fix per cent, been at once thrown upon the Company for immediate payment in Europe ; a fum which, without the aid of Parliament, it is impoffible for the Company to difcharge. Of this large expenditure, fanftioned, and in many cafes fpecificaliy directed by the Minifters of the Crown, it may with juftice be afked, what part ha^ been in- curred for the partial or exclufive advantage of the Company ? — It is evident, that the whole concern has been begun and continued by private exertions alone ; nor have the Proprietors received, by any means, an adequate recompence for thofe ex- ertions ; they have fcarcely derived more benefit than the common intereft of money. And if India be an objedi: of regiu-d to the world, the Company may have the fatis- faftion of thinking, that they, at their own rifk and expenfe, have refcued it from contending Nations, and may claim the merit of having land it at the feet of their country ; acquired and preferved, it is true, at a great pecuniary £xpenfe, and by fuch abilities and fuch exertions, both civil and military, as not only to reflefl the hlgheft credit upon the Eaft-India Company, but alfo to raife, as the pageof hiftory •will teftify, the national charafter. They venture to hope, that when all the great political lelations of this acquifition are confidered, the price paid for it will not be deemed as out of proportion to its intrinfic value. The wifdom of Parliament will, the Court make no doubt, be applied to pre- ferve what has been fo acquired, and finally do juftice to thofe, at whofe rilk it has been obtained ; and net be induced to barter pofitive, and very large immediate advantages, againft fpeculalive notions and theoretical plans. In the fecond place, it has been often urged, that the Company have been favoured -during thefe exertions, with an exclufive trade, and that the nation has thereby loft an opportunity of extending their commercial enterprizes over a large quarter of ( 3» ) of the globe. It is true, that the Company have been f.ivoured with this cxcUifive No. XVU. trade ; but it may fairly be afked, would India have belonged to Great Britain if this exclufive trade had not exifted ? That this trade would have been of greater ^'i*'™*™ ««"' magnitude in the hands of individuals, is yet a matter that remains to be proved : '"'^ * ''*^"^'' but it is obvious, that during part of the above period, viz. from the year iy68 to 1812, the Public have received, in direct contributions from the CompaHV, a funi not falling Ihort of .i^'5,135,319, as will appear by the accompanying Account (D.) With refped to the immediate produce of this trade to the Public, the Court believe it will bear a compariibn with that arifing from any other diftant pofleflion. It pro- duced lad year to the Public the large fum of _4^4,2i3,425 (E), viz. in culloiu «^759>595' ''"^ '" excife -^3,453,830 ; and though this return to the Public be larger, as the Court have reafon to think, in refpeft to the capital employed, than the return from any other trade, it has at the fame time, been colkfted with a facility unknown to other concerns ; an advantage which has been obtained, oartlv by the progreffive enadment of regulations the fruit of many years experience, and partly by the concentration of the trade in a fingle port, and the prevention of fmuggling, which has been the confequence of it. But what has never yet been fairly eftimated in the exiftence of the Ea.l-India Company is, that the whole of thefe returns have been brought into the exchequer of the Public, without the Public having been called upon lor any direct contribu- tion for the prefervation of the fource from whence they have had their rife, w^j;ilil the pofTefiions of the Crown, in every quarter of the globe, have drawn fron; theiu a confiderable fum for their fupport in troops. What has been faved to the State has thus, the Court conceive, been gained by the Public, and would amount, as the Court are fatisfied, in only twenty years, to a fum of a very great magnitude. From the Navy, indeed, the Eail-India Company have received important afiiitance ; but fuch afiiitance, it mufl be recolieded, has been afforded to them only in com- mon with the reft of His Majefty's fubje£ts. That the trade of the Company has been highly beneficial to the Public, In afford- ing a nurfery for feamen in time of war, and employment for them in tiine of peace, and that the Company's m.aritime fervice has contributed materially tov/ards thofe benefits, cannot, the Court apprehend, be doubted ; nor that the fortunes of indi- viduals, acquired either in the fervice of the Company, or by their indultry and exertions under the Company's protedtion, have gradually contributed to the accu- mulation of that public btcck of national weslth, which has enabled this country to Hand, almoft alone, againft the uiuted exertions uf nearly all Europe. Having offered thefe curfory obfervations upon matters of fuch obvious impor- tance, we are direded by the Court to ftate, that as the pecuniary arrangement? neceffary for the fupport of the Company cannot, with propria ty or with effed, be made the fubjett of correfpondcnce, they beg to refer tin fe poiiits, ,is well as all thofe of inferior detail, of which there are a great many, to a perlbrial conference between your Lordlhip and the Deputation of the Court, which had the honor to wait on your LorJihip this morning. » We have the l;onor to be, My Lord, ; Your Lordfiiip's moft obedient humble fervants, (Signed) JACOB BOSANQUEl", HUGH INGLIS. The Rijjht Honcurrfble Lord Vifcount Melville, kc. Siz. &c. : ^vN No. XVII. Chairman and Dt-puty's Letter. ( 32 ) A. AN ACCOUNT, fhewing the Total Amount of the Official Value of the Bullion and Merchandize imported into, and exported from Britifh India (Bengal, Madras, Rnd Bombay) to London, America, and Foreign Europe, for Six Years, viz. from 1802-310 1807-85 both inclufive. London : By the Eafl India Company By Commanders and Officers of the Company's Ships By Britifli Private -Traders Americans - - - Foreign Europeans Total Imports and Exports £ Total of the Imports into India. Total of the Exports. Bullion. £ Sterling. 4,939,128 179.756 1,167,460 4,543,662 2,051,093 Goods and Stores £ Sterling. 5.547.501 2,640,000 1,83^,980 667,654 1,072,960 Total. £ Sterling. 10,486,629 2,819,756 3,000,440 5,211,316 3,124.053 Of Goods only. £ Sterling. 8,108,897 1,939,000 5.6^1,740 4,803,283 2.437.752 12,881,099 11,761,095 24,642,194 22,970,672 Memorandum. — There has been a fmall quantity of Bullion exported from India to Europe and America, to the extent of Sicca Rupees 1,75,316, but which is not material to the prefent account. Note. — The value of the Company's Imports into India is taken from the invoices of the fliips as they arrived in India, with the addition of ten per cent, upon the in- voice price outwards. The value of the Britifli Private-l'rade, as alfo the Ameri- can and Foreign European, is the Indian official value, and which appears to cor- refpond pretty nearly with the market prices in India. In order to make a juft com- parifon between the amount of the Company's and the Private or Foreign Trade, the goods fhouH be exaftly reduced to the fame denomination of value ; but this is not ftriftly pradticable. Errors excepted, (Signed) ROBERT WISSETT. iaft-India Houfe, 4th March 1812. B. AN ACCOUNT, (hewing the Amount of the Official Value of the Bullion and Mer^ chandize imported into, and exported from Britifli India (Bengal, Madras, and Bombay) to London, America, and Foreign Europe, on an average of Six Years, viz. from 1802-3 to 1807-8, both inclufive. »■ the £ .'Annual average of the Imports into India. Aimual average of the £.xports. London -. By the Eaft-India Company By Commanders and Officers of Company's Ships By Britilh Private Traders Americans Foreign Europeans Bullion. £ Sterling. 823,188 29,959 '94,576 757.277 341. «49 Geodscnd Stores. £ Sterling. 924,5»3 440,000 305.496 111.275 178,826 Total of Imports. £ Sterling. 1,747.771 469,959 500,072 868,552 520,675 Mercliandize only, £ Sterling. 1.351,483 323.167 946,956 800,547 406,292 Total average Imports and Exports 2,146,849 1,960,180 4,107,029 3,828,445 The Proportions of which are Exported to England Ditto to America Ditto •sVo, or upwsrds of 4ths. 3-5^, or let's than -Jths. to Foreign Europe Vo^ or lefs than ith. The ( 33 ) The exports of individuals from Britain are : No. XVII. Bullion jf 194,576 Goods 305,496 Chairman and • 500,072 Deputy's Letter. The imports of ditto into Britain - - - . 940,956 Difference, per annum - - ^^446,884 being not a trade but a remittance, dedu£ling the amount of the profit on exports. Errors excepted, Eaft India Houfe, (Signed) ROBERT WISSETT. 4th March i8ia. OUTLAY, Commercial and Territorial, of the Eafl; India Company at Home and Abroad, made up in rcfpeft to the Indian Accounts, to the 30th April 1810, the Home Accounts to the 1 ft March 1 8 1 1 . COMMERCIAL OUTLAY. No. I, Cafh ^460,738 Value of goods fold and unfold - 5,053,417 Vrdue of goods afloat - - 3>379j3^9 Houfe and warehoufes - - 1,207,090 Balance of property at China and Cape of Good Hope _ _ _ 1,240,65a ■ 'Cafli, goods, and debts, commercial department India _ . _ 3,071,637 .€14,412,923 Balance of Property at Bencoolen and St. Helena: the outlay at thefe places being of an anomalous nature, it is ftated fcparately - - - 434>755 Total Commercial Outlay - .€14,847,678 TERRITORIAL OUTLAY, INDIA, viz. Ho. II. Cafh in the feveral departments, 30th April 1810 . Bengal, S. R. 4,11,38,439, at 2s. per C. R. - - - €"4,772,058 Madras, Pags. 1,16,24,307, at 8s - 4,649,723 Bombay, B. R. 53,58,932, at 2s. 3d. 602,879 €"10,034,660 Debts owing to the Company : Bengal, S. R. 1,33,49,444, at 2s. perC. R. - €'1,548,535 Madras, Pags. 94,93,034, at 8s. - - 3,797,214 Bombay, B.R. 54.01,917 at 2s. 3d. - - 607,716 Stores, Kc. : Bengal, S. R. 97,82,1 14, 1 at 2s. per C. R. - €'1,134,725 Madras,Pags,33, 16,927, at 8s. - - 1,326,771 Bombay, B.R. 3 8, 3 1,083, at 2s. 3d, - - 430,997 2,892,493 8,845,958 Balance of property at Prince of Wales's Ifland - 224,406 Indian territorial outlay - - - . €19,095,024 T£RRlTORL\L OUTLAY AT HOME, ill .vlarch 1811. Debt due from Government, the balance of the original debt of €■"4,200,000 _ - . €"1,207,560 Debt due from Government, the ba. lance of the account for troops, iS9-) I ftorei, ( 34 ■) Ko.XVII. Chairman and Deputy's Letlur. Brought forward j^*!, 207,560 19,095,024 ftorcs, fupplies, &:c. - - 960,000 Advances to feveral perfons in India, to be repaid - . _ - 19,695 7,187,255 Total territorial outlay - , _ No. III. The expenditure at home and abroad, for the acquifition of terri- tory, he. being the balance of the flock account, iftMirch 1811 Sum total of capital neceffary to carry on the concern 14,847,678 ^^21,282,379 ■=^36,i29>957 i5>o52»»70 ^€51, 182, 137 No. IV. The capital advanced by the Adventurers The capital raifed by bond _ _ . Other capita!, being a floating debt generally due on various accounts : Borrowed of the bank - - j€'70o,ooo Edimated commercial floating drafts 6oo,coo Sundry fums owmg to individuals in England - - - - 2,155,922 -Debts, depofits, arrears of interelt, and allowances and loans, not bearing intereft : Bengal . - - ^'2,843,134 Madras - _ _ 1,017,238 Bombay _ _ _ 408,792 •=£7,780,000 7,000,000 Debts in India, commercial 4,269,164 62,867 Total of capital, without the Bond debt of India, No. V. Difference 5 being the balance neceffary to remain in permanent loans, for the purpofe of carrying on the concern Eaft' India Houfe, 4th March 1813. Errors excepted, (Signed) 7.787.953 ^"22,567,953 38,614,174 .5^5 1, 1 82, r 27 CHARLES CART WRIGHT, Accountant General. D. STATEMENT of the Contributions from the Eaft India Company to the Public, from the Tear 1768 to the Year iSia Paid from 1768 to 1775, ''^ confequence of an agreement concerning the territorial poffeffion, ^7. Geo. III. cap. 57, and 9 Geo. Ill, cap. 24.) Paid from 1769 to 1773, for indemnity on tea - - • Paid in 1779, bounty for feamen raifed for the fervice of Government Paid in 1780 and 1781, three fliips of the line prefented to Government Paid in 1781 and 1787, per agreement for a new charter in 1781 Paid in 1789 and 1790, for victualling the navy, and charges of His Ma- jefty's troops in India _ _ - _ _ Claim of the Company for fubfiftence of French prifoners of war, and other expences incurred by the Company on account of Government, written off in 1793 per Atl of 33 Geo. III. cap. 52, fee. 127. Paid in 1793 and 1794, for participation, purfuant to the Charter AG. of 1793 - - - - - - Paid in 1795 and 1796, expence of 3,000 feamen raifed for the fervice of Government _ _ _ _ _ Paid in 1803 and 1804, armed fiiips, hired for the fervice of Government, and employed in defence of the country Lofs, from 1793 to 181 1, by faltpetre fuppiied t6 Government at lefs than prime coft, as per obligation of the Charter ^3,169,399 483,050 - 13.653 95.349 400,000 5c®,ooo 443.632 500,000 57,000 67,330 405,906 Eaft India Houfe, 4th March 1812. •^'5.135.319 Errors excepted, (Signed) CHARLES CART WRIGHT, Accountant General. ( 35 ) E. AN ACCOUNT of the Duties of Cuftoms and Eiclfe received on Goods imported and exported by the Eaft India Company, in the Year ending January iSu. Cuftoms on Tea - - ^2r9,322 — Other Goods - - 498,901 Export Duty - - ^li^SS Tonnage Duty - 23,719 Excife Total Cuftoms - - 7,59i59J Total Cuftoms and Excife j^4,3 13,425 Eaft India Houfe, 4th March 18 13. Errors excepted, (Signed) CHARLES CARTWRIGHT, Accountant General. No. XVIII. Minute of a Meeting of the Deputation, the 3d March 1812. npHE Deputation appointed by the Court to confer with the Prefident of the Board" of Commiflioners for the Affairs of India ailembled this day, in confequence of their appointment of the 2d inftant ; The Chairman bid before the Deputation, Minutes of a conference which the Chairs had with Lord Melville, on the 20th February, and alfo with his Lordlhip, Mr. Perceval, and Mr. Long, on the 24th of February ; likewile feveral Accounts, fliewing the prefent and profpeclive fituation of the Company's pecuniary affairs. The Chairman then fuggefted certain propofitions, as hints to be fubmitted to Lord Melville, which after full deliberation the Deputation refolved to adopt, and to wait upon his Lordlhip to-morrow, at half paft ten, for the purpofe of offering them to his confideration. No. XVIL Chairman and Deputy's Letter No. XVIII. Minute of Deputation. Chairman and Deputy's Letter. No, XIX. At a Secret Court of Diredors, held on Friday, the 6th March 1812. 'pHE Chairman acquainted the Court, that the Deputation appointed the 2d inftant had waited on Lord Melville, with a paper containing hints for his Lordfliip's • confideration, which had been approved by the Committee of Correfpondence. rence The Chairman gave fome general explanations, as to what paffed at the confer- ice; and added, that Lord Melville's opinion, on the various propofitions fub- mitted to him by the Deputation, would be ftated by his Lordflilp in writinc-, and IhoulJ be communicated to the Court as early as poffible. "' No. XIX. Secret Court, 6th March 1S12. No. XX. Hints approved by the Committee of Correfpondence, and fubmitted to the Confideration of the Right Honorable Lord Melville, noticed in the preceding Minute. 'J^HAT the renewal of the Charter fliall proceed upon (hebafis of the Ad of 1707, and that no greater extenfion of the trade fhall be granted than what was allowed oy that Act} but the Deputation are ready to recommend to the Court of Directors, and No. XX. Hinu ^Htnt^ C 36 ■) No. XX. and ultimately to the Court of Proprietors, to admit fuch modifications as may be deemed neceffary to give greater facilities to the private trader. I ft. No Britifh or Indian fliip to fail, direftly or circuitoufly, from a Britifii port in Europe to China. ad. No Britifh fubjeft to be permitted to refiJe rn China, without the Com- pany's licence. 3d. No goods, the growth or produce of China, to be imported into any of the ports of the United Kingdom, except l>y the Eafl India Company. 4th. The power of levying duties in India upon Britifh fubjeas, and the i fubjects of foreign nations, to be continued to the Company, upon the footing ■on which it at prefent exifls ; and the fame power, with refpeft to Britifh fubjecls, to be extended to the diflrids within the jurifdi^tion of the courts of Calcutta, JVIadras, Bombay, and Prince of Wales Ifland. . .. 5th. Saltpetre to be confidered as a political article, and to be confined exclu- ■fively to the Company. 6th. The whole of the Indian trade to be brought to the port of London, and the goods fold at the Company's fales, and to be, as at prefent, under the Company's mana-jement. 7lh. The three per cent, now paid to the Company by the private traders, for the warehoufing and management of the private trade, to be increafed to five per icent. 8th. No private fliip to be permitted to fail for India, except from the port of London. 9th. No fhip to be permitted to I'ail, except under a Licence from the Eafl India Company. Ships obtaining this licence, to deliver one copy of their journals at the Eafl India Houfe ; and the licence to contain fuch claufes, as may be likely to prevent an unlimited or unproper inlercourfe of individuals with India. loth. Fire-arms, military and naval flores, to be prohibited articles. I I th. Exifling reflridions, with refped to the article of piece goods, to be continued. 1 2th. It being defirable, as well for the Public as for the Company, that the quality of the filk grown in India fliould not be deteriorated, it is fubmitted that this article be confined to the Company. 13th. The fhlps of private perfons to be fubjeft to the fame regulations, in refpeft to convoys, &:c. as thole belonging to the Company. 14th. No private fhip to be permitted to fail, either from Great Britain to India, or from India to Great Britain, of a lefs burthen than four hundred tons. 1 5th. The Company to be fubject to no obligation with refpect to Exports to India, except in comnvm with the private traders. 16th. The Lafcars and Chinefe failors brought home in private fhips, to be placed under proper regulations. Not, upon any account, to be fulfered to wander about the ftreets of London. Good treatment to be fecured to them, and the Company to be enabled, by fome funnnary procefs, to recover the expences to which they fliall be fubjeded, in the event of negled on the part of the owners of fuch fhips in thefe refpefts. 17th. The Company to be indemnified for their unexpired engagements for extra ihipping, provided for the accommodation of the private traders. i8th. An unrcflrained intercourfe with India to be prevented, and the exifling -reflriiSlions, with refpeft to reiidence in India, to be continued. 19th. The number of His Majefly's forces in India to be in future maintained by the Eafl India Company to be now fixed, and any troops fent beyond that number (except at the exprefs requifition of the Eafl India Company) to be at the charge of the Public. 20th. The Hinls. ( 37 ) loth. The Company to be releafed from any future accouftt with the Pay Oftlcc, No. XX. and to be henceforward charged, either fo much per regiment of a given force, or fo much per man. a I ft. The prefent heavy current and poflponed demands of the Pay Office againft the Company to be arranged upon fome footing of general equity, and fome adver- tance in fettling this account made to the (hare which the Company have been obliged to bear in foreign captures not retained by them, and to their iiaviiig been conftrained to maintain anEuropean and native force, larger than what was required for the defence (jf the Peninfula, and other heavy expences. 22d. The Proprietors to be fecured, as at prefent, in the receipt of their dividend of ten and a half per cent., upon the faith of which dividend the capital in 1793 was raifed. 23d. The v/hole of the furplus of the Eaft India Company to be appropriated to a diuihiution of their debts, until the debts be reduced to the fum of ten millions llerlino;. a4th. The funis required by the Eaft India Company to liquidate tlie debt tranf- ferred from India to Europe, and becoming payable in 1812 and 1813, to bcfunded by the Minifter, the intereft of which fhall be regularly paid into His Majfcfty's Ek- chequer by the Company, together with iuiy fuch per centagc, for tlie gradual liqui- dation of tlie capital or redemption of the fund, as fl:iall be deemed proper by His Majefty's Minifters. The I'wcnty -fifth article did not form a part of the propofitions fubrtiitted to Lord Melville, but is nov/ introduced by the Committee of Correfpondence, and is as follows, viz, 25th. That, in order to give the utmoft poffible extenfion to the commerce of private merchants, and at the fame time to fecure the Company's exclufive trade to and from China, private fliips be not permitted to go farther eaftward than Point •Romania, at the entrance of the China Seas, and to the northward, not beyond the equinoftial line. N. B. Should it be the intention of Government that private traders fhall be excluded f om the Spice Iflands, the limits ought then to be for them not to go to the eaftward of the Straits of Bally, nor to the northward of the Line. No. XXI. At a Secret Committee of Correfpondence, the i8th March iSie. fyHE Chairman acquainted the Committee, that the Deputy and himfelf had No. XXI. yefttrday waited on Lord Melville, and that his Lordihip had appointed to- -morrow, at one o'clock, for a conference with the Members of the Deputation. Secret Committee, 18 March l8i3. The Committee agreed to recommend to the CoQrt to-day, that the Quarterly General Court, to be held on Wcdnefday, the 25th inllant, be made fpecial, for the purpofe of laying before the Proprietors the Communications which have taken place between His Majefty's Government and the Court of Dire>Sors, rofpeding the renewal of the Company's Charter. It was alfo refolvcd. That the Papers containing the faiJ communications he printed for the information of the Proprietors, and under the fuperintendance of the Affiftant Secretary. Draft of a Letter to Lord Melville, to be figned by the Members of the Deputation, requefting that a longer term than that which was fixed in 1793, may be granted for [he lenewal of the Company's exclufive privileges, was read and approved. The Chairman calling the attention of the Committee to the correfpondence which had paffed between Lord Caftlereagh and the Chairs at a former period, as to re- (.59-) i^ lieving 270654. '^ iS starch iSj J. ( 38 ) No. XXI. licvirtg the Proprietors of Eall India Stock from the payment of the Income-tax oa their dividends, Sfcret Co™mj"«. The fame was read, viz. Letters from the Chairs to Lord Cadlereagh, dated the 2d December 1803 and 7th July 1 S04 ; and. Letters from his Lorddiip to the Chairs, dated coth December 1803 and 1 2th September 1804. Draft of a letter to be figned bv the Deputation and addrefTcd to Lord Melville upon that fubj eft ; and alio fuhmitting to his Lordfiiip's confideration, the expe- diency of providing that the adciitional dividend of ten fliillings per cent, paid on the Company's ftock under the Aft of the Thirty-lhird of His prefent Majefly, cap. 52, fee. 124, may be paid out of the general profits of the Company. No. XXII. CORRESPONDENCE wiih the Right Honourable Lord Vifcount Caftlereagh, noticed in the preceding Minute. No. XXII. Letter from the Chairman and Deputy Chairman to the Right Honourable ■ Lord Vifcount CalUercogh. Correfpondence t- n t v t with Lord My Lord, Ealt India Houfe, Dec. 2d, 1803. CaiUereagh. TV-^ ^^"^^^ waited until we had obtained a diftinft legal opinion from the Company's liw advifer, with refpeft to the power poiTeffcd by the Company of paying the Property-tax out of the Profits t;f the Company, previous to the declaration of a divi- dend to the Proprietors of Eaft-India Stock. But that opinion having been lately returned to us in a fhape unfavourable to our hopes and expeftations, we have received the injunftions of the Court of Direc- tors to fubmit this opinion to your Lordlhip's confideration, and, at the fame time, to exprefs their hopes, that your Loidfliip and the refl of His Ma,- jefly's Miniflers will think it juft and aJvifeable, that the power to which we have above referred fhould be granted to the Company by fome legifiativc provifion. Upon this cccafion we have to obferve to your Lordfliip, that as the law at prefent ftands, the Company are obliged to deduft the full amount of the tax in queftion from all the dividends payable to foreigners or other pcrfons, however finall the amount of their capital flock may be ; although it is fairly queflionable, how far the former is legally chargeable to this tax, in refpeft to thofe profits that may be prefumeJ to arife from the Company's foreign pofTeiiions, and whether the latter, in ibme cafe*:, may not be entitled to a partial, and in others to an entire return of the tax fo retained, in refpeft of the finallnefs of the proprietors incomes. We mufl alfo fubmit, that as the greater part of the other public Companies poflefs the power, and, £s we underftand, are difpofed to exercife the means of difcharging this tax out of their furplus pre fits, it mull appear doubly irkfome to the Proprietors of Eaft- India Stock tafeem an almoft folitary exception to this general praftice, particularly when they advert to the difpofition which has, at all tunes, been evinced by them, cheerfully and voluntarily, to come forward for the fervice of the State, even when their own immediate interelfs have thereby been placed at flake. We feci the more freedom in prefTing this point, becanfe we, in common with your Lordfhip, have entertained an expeftation, that the public (after a w.4r which has exifled almoft fince the lad renewal of the Company's exclufive tradej would have been placed in pcfl'eflion of the fhare of the Company's profits, fecured to them by the aft of 1793, ifthe enormous taxes which the neceffities of the State have ren- dered i" nec(.(Iiiry to impofe upon teas and the other articles of the Company's Trade, and the inevitable expences of another war, had not placed a bar to thofe expectations, which we think might otkerwife reafonably have been formed. Wc ( 39 ) We tha-efore venture to exprefs a fanguiite hope, that under a proper cpnfidcra- No. XXII. tion of all the circumftances of the prefent cafe, under a review of the very large Sums annually paid to Government out of the Company's trade, amounting °J|t^hTord"" tonotlefs than ;f. 3,200,000, as appears by the enclofed account, and which, in faft, c«(lleTMgh. ought in part to be confidered as an anticipated partition of the Public out of the Indian revenues, fince nothing fhoit of a furplus in India would, we conceive, have enabled the Company to fupport them to the extent they are now impofed ; — that, under a due attention to the benefits which even the Public themfelves, (when we advert to their intereft, in the ukiinate profperity of the Co;npany) may derive from an increafed value to the price of the Company's Stock, which may be affixed by fuch a meafure, in cafe a commerce, extended beyond its prefent amount (an event not at all improbable), fhould hereafter demand additional funds to carry that commerce on; — and, finally, that under a confidtration of what is due to the known and experienced liberalitv of the Company's efforts in t'ne pub- lic ferviee, your Lordihip's interference, with the re!l of His Majelly's Minillers, will be given, to ailiil what, we hope, may be confidered in the li;^htof the neither unjuft or the unreafonable pretenfions of the Court of Directors, in behalf ot the body they reprefent upon the prefent occafion. We have the honor to be. My Lord, Your mod obedient humble fervants, (Signed; JACOB BOSANOUET, JOHN ROBERTS. The Right Honorable Lord Vifcount Caftlereagh, ice. Sec &c. Letter from the Ri^ht Honorable Lord Vifcount CaRlereaoli to the Ld.CnAIc-cagS't •^ ^ Letter. Chairman and Deputy Chairman. ul I Gentlemen, Whitehall, 20th December i8oj'. HAVE to acknowledge the honor of your letter of the 2d inftant on the fubjeft of which I have had a very full and deliberate difcullion with Mr. Addington. We {hould both feel an:tioufly difpofed to lend our aid to the accompiilhment of any meafure which had a tendency to accommodate the holders of Ea(t India Stock, but under all the circumftances of the prefent cafe, regard being had to the exifling appropriations under the aft of 1793, the degree in which the funds at home and abroad may be. aflecled by the peculiar circumllances of the prefent year, :*nd the difHculty that muii necdiariiy attach to the propofition, whether it be con- fidered in the light of relieving Irom the tax a particular delcriplion of income arifing from property, by throwing the fame on other funds, or in that of a temporary and fpecial increafe of dividend to the Proprietors, we do not feel ourfelves warranted in advifmg the Court to fubmit a bill for this purpofe to Parliament. . We are further of opinion, that the relief fought by the meafure is not of that magnitude, which fhould induce the Company to folicit this indulgence from Par- liament, under the diinculties above fiated ; nor are we perfuaded if, in point of ■faft, other corporate bodies have fo relieved themfelves from the tax, that the pro- ceeding, on their part, however warranted by law affords a precedent, which in principle, the Eaft India Company, witrt an enlarged view to their own interefts, ■ Ihould be foliciious to follow. 1 have the honor to be, Gentlemen, Your molt obedient fervant. The Chairman and Deputy Chairman (Signed) CASTLEREAGIL Of the Eaft India Company. Letter . No. XXIT. Letter from t1ie Chairman and Deputy Chairman to the 'Right Honorable .^ ■ ; v: ■■. ' Lotd Vifcount Caftkreagh. Deputy'* Letter, My Lord, Eafl: India Houfe, the 7th July 1804. tT is in conlVquence of the inflrudlions of a General Court of Proprietors which ^ lately affcmbled co take into confidcration the tax levied, in virtue of the 43d of . the King, on the dividends payable on Eaft India flock, that we now lake the liberty to addrefs your Lordfliip again on that fubjeil. Notv/ithftanding the anfwer returned by your Lordlhip to the application which our predeceflbrs in office made to you, under date the 2d December laft, for the aid ot His Majelly's Minifters, in order to relieve the holders of the Company's flock from the payment of the Property-tax out of their dividends, the Proprietors ftil! think, that whether regard be had to the defign and fpirit of the Aft of 1793, to the general ftate and circumflanccs of the -Company, or to the peculiar fituation of the ■Stock-holders, thcv are a'j:grieved by the operation given, in their cafe, to the A'ft impofmg a tax on property. ' ^ sd^ ^'; It -was after a full coniideration and adjuftment of the intereft of all parties, the . Public, the Company, and individuals, that on the renewal of the Charter, the dividend of the 8lock-holders was fixed at ten and a half percent, per annum. The law then made, in allowing it to rife to that rate, forbade it to go higher ; and the reduction of it below that rate was left to the diicrclion of the Proprietors ihem- ■ felves. /I'his was, therclore, underltood to be the fixed certain income ailigned to the Members of the Company, out of al! its funds, territorial and commercial.' Aird hence we think it may fairly be argued, that fuch a deliberate formal fettlvrmeiif cannot juftly bedifturbed, but by a proceeding equally diredt and appropriate ; and that no mere meafure of taxation, having only a general aim, without any cog- nizance of the ptculiar circun'iftances under v^'hich this arrangement was concluded, ought to defeat it, becaufe if the contrary principle be once admitted, whilft the Public is ftill imnienfely benefitted by Indian revenue and trade, and all the ether ■clafles of fubjedts connected with them continue to derive the advantages provided for them, the Proprietors of that flock, which has been the foundation and fupport of the whole, may abfolutely be divefted of all the dividend they were to receive from it. We think, therefore, it may be contended, that conformably to the fpirit of the Act of 1793, the Property-tax fhould not operate upon the dividend, but be acharge upon the general funds of the Ccmpany, This will appear more reafonable, if it be confidered that very many of the Pro- prietors of India Stock, who have held that flock long, receive no more on the coft of it than the common interefl of money, namely live per cent, whilil: their property is expofed to the influence of ail the adverfe contingencies to which the Company's affairs are liable; and whilft the Company, that is to fay, thofe Proprietors in theif coUedtive capacity, ferve as the channel, or medium by which immenle advantages are diifufed through the natioii, in its commerce, its revenues, and the wealth of all the fucccffive races of Britifli fubjeftr-, employed in or connected with their teiri- toj-ics and affairs. Thefe juil obfervations acquire now a peculiar force, when, in duties and cuftoms alone, the Eallern commerce pays to the State ;^3,226,opo per annum, and when the receipts of the Company, for the lalt twelve months, are di- miniihed near a million flerling, in confequence of the nev.' and czcelfive duties im- pofcd on their trade. We are unwilling to urge the liberality vvhich the Company has on all occafions manifefted, to aid, according to its means, the exertions of the State > but the duly impofed on us by our Conilituents requires that liberality fliould be noticed on the prefent occafion. By fubfcribing for two millions of the Loyalty Loan in 1797, the Company loft the fum of ;^ 206,000. The three compleat and effe£tive regiments of volunteers, which they have maintained for a number of yeais pail, have cofl them very large fums ; and the lafl aid given by them in {hipping, on the particular fuggefllon of Government, is a new inftance of the promptitude and alacrity, with which they devote their funds to the fupport of the public interell. After all thefe contributions, it has appeared ungracious to the Proprietors, that, y/hillt other public bodies, which had not given fo largely to the wants of the State, were ( 4t ) were allowed to defray ttie Property-tax out of their general funds, the Proprietor j No. XXII. of EalUIndia Stock were required to charge the modicum they received for the ufc of their own money, and for being the agents in fuch vaft couGerns, with a tax hard Cluirmin tnJ upon them though unimportant in its amount, to the Public, and from which they ^■'P"7'' -Lctwr. conceive the Act of 1793 ought to protect the dividend then accorded to them. When our predeceflors in office mentioned a reference to Parliament, they pro- bably had no mora in view than fome fuppofed neceflity of a modification of the Pro- perty-tax ; but we humbly apprehend that, in order to exonerate the Proprietors, individually from the payment of the tax, no fuch reference is neceffary, fince for engaging in the Loyalty Loan, for forming the three regiments of volunteers, and for the late aid of fhipping, it was thought fufficient that His Majefty's Minillers fliould content to the defraying of the charges arifmg from thefe meafui'cs, out of the general funds of the Company. _ Wifhing. to flate nothing upon this fubjeft, but what appears to us naturally to grow out of it, we fliall only add, that the effect of the impofed tax upon the value of the Company's Itock muft be very obvious, fmce the dividend receivable upon any public fund is, in fa£t, the meafure of its value in the market, and every de-- duction, by whatever means, effefted in the produce of any ftock, is in reality a re- duction in the worth of the capital ; and, accordingly, we find that the flock of the , India Company,, compared with that of the Bank, fells at a price difproportionably low. Upon all thefe grounds, with thofe which have been before urged, we cannot but reqtieft and hope, that as the determination of the point which our ConltituentSjr not from intereft only, but from various other motives, have fo much at heart, feems not to depend upon any revifionary proceeding of Parliament (which however, if neceflary, we firould ilill urgently defire) but upon the scquiefcence of His Ma- jerty's Miuiilers. we cannot but f:arneftly requefl and hope, that it will feem ex- pedient to your LordOiip to add your own recommendation to this reprefentation, and that you will have the goodnefs to fubmit both to the Chancellor of His Ma- jcllj's Exchequer. We have the honor to be, My Lord, Your moft obedient humble fervants, (Signed) W. F. ELPHINSTONE. CHARLES GRANT. The Right Honorable Lord Vifcount Caftleveagh, &c. &c. &c. Letter from the Right Honorable Lord Vifcount Caftkreagh to the j^^^^ Chairman and Deputy Chairman. Caftlereaa-h'« Gentlemen, India Board, lath September 1804. IN compliance with the defire of the Court of Proprietors, as exprcflk-d In your letter of the 7lh July laft, I have reconfidered, with the moft earneft difpofition at all times to promote their wifhes, the opinion which I before prefiuned to exprefs, on the propriety of their dividends being difcharged from any deduction on account of the late tax upon property, by caufing the fame to be paid out of the general funds of the Company, and 1 have alfo communicated with Mr. Pitt on this fubjeft. Notv^ithftanding the very ingenious reafoning contained in your Letter, we are clearly of opinion, that a payment of this nature, diredled to the individual emolu- ment of the Proprietors of India Stock, and not in any refpect to the public fervice of the Company, cannot be ifl'ued, under the exifting appropriations affcding then- funds, without the exprefs fanclion of Parliament. Had the tax been directly Impofed on income, as under the former law, we appre- hend it never would have fuggefted itfelfto the Court of Proprietors, that income de- rived from the dividends of the Company ftiould enjoy any partial exemption. The policy of the Legiflature has recently been, to apply the tax to the fources of income, rather than to levy it, as formerly, upon the llatement of the poifelTor. It does not appear to us, that this change in the mode of alfelTment can juflify a claim to (59.) L perfonal Letter. No. XXII. ( 42 ) Perfonal relief from the tax itfelf. If not, the propofuion refolves itfelf either into — Sn encreafed dividend, or into a new appropriaiion of the net proceeds, enabling Lord Caftlercagh's ^j,g Company to charge the tax on their funds generally, as fome other Corporations ^'■""' have done, who are fnle proprietors in fuch funds. This opens fo large a queftion in principle, and for fo fmatl an object, either as it affefts the intereft of the Public or .the individual Proprietors, that I fhould conceive, under all the circuniftances, tlie Court will not feci difpofed to prefs it at fuch a moment upon the attention of Parliament. 1 have the honor to be. Gentlemen, Your mofl: obedient humble fervant, (Signed) CASTLEREAQH.,, The Chairman and Deputy Chairman of the Ealt-India Company. No. XXIII, Secret Court, iSMarch j8i2. No. XXIII. At a Secret Court of Direftors, held on Wednefday, the i8th March 1812; n^HE Chairman from the Committee of Correfpondence laying before the ■ -*■ Court draft of a letter to Lord Melville, to be figned by the Deputation, re- quefting that a longer term than that which was fixed in 1793 may be granted fdr the renewal of the Company's exclufive privileges, the fame was read and approved.; as was alfo, Draft of a letter to his Lordfnip, to be figned by the Deputation, fubmitting to his confideration the expediency of providing, that the additional dividend of ten {hillings per cent, paid on the Company's ftock, under the aft of the 33d of His prefent Majefty, cap. 52. fee. 124, may be paid out of the general profits of the Company ; and alfo, that authority may be given to make the Property-duty on the dividends a charge on thofe profits. No. XXIV. Depuration hetuu No. XXIV. Letter from the Deputation to the Right Honorable Lord Vifcount Mel- ville, noticed in the preceding Minute. My Lord, Eafl-India Houfe, 18th March 181 2. A LTHOUGH we are aware that this may not be confidered the proper time to difcufs the term of years for which the exclufive privileges of the Company Ihould be renewed, yet, under the profpefl; of your Lorufhip's fcon leaving the India Boaidj we are anxious to avoid any delay, in requefling your Lordlhip's attention to that point. On reference to the negociations in 1793, we obferve that the principal ground on which the company founded their application for a renewal of their pnvileges for a long term, was that fufficient time might be allowed for the liquidation of their debts at intereft in India, the amount of which, at that period, was feven millions fterling. The term then granted was twenty years, from the 1 ft of March J 794, including the ufual notice of three years, this term being confidered adequate to the objeft: in view. The Company's debts at intereft in India are now fuppofed to amount to twenty- five millions fterling, exclufive of the debt in Europe ; we truft, therefore, it will be evident, that a longer terni than that which was granted in 1793 ^^ indifpenfable, to admit of the gradual reduction of the prefent debt, and the effedtual operation of any xneafures which may be determined on for thatpurpofe. "Without mentioning any particular term, we take the liberty of referring your Lord- fliip to the Ad of the 3d cf George li. cap. i4, to fhew that a longer perioJ than that ( 43 )' tfiat 'gfalntedin 179^ has been conceded ; and as, under every view of the fubjed. No. XXIV, confideiinp; the contingencies of war, or other interruption, we are convinced of the — ■ncceflity of a more extended teim, for the purpofes of hquidating dtbls of fuch I^-'P"'-*""" i-^ti*""- niaf^nitii le, and of reftoring the Company's afi'airs to that Hate of profpenty, which is efTenticil both to them and the Public. We rely with confidence on your Lordlhip's concurrence in the opinion we have fubmitted. We have the honor to be, with the greatefl: refpeft, Your Lordfliip's mod obedient, humble Servants, , . (Signed) JACOB BOSANQUET, , , ■ HUGH ING1.IS, Thc-'kigh'tHon. Lord Vifcount Melville,. W. F. ELPHTNSTONE, &C.&C. &c. • EDWARD PARR y. No. XXV. Letter from the Deputation to the Right Honorable Lord Vifcount Melville^ No. XXT.- alfo noticed in the preceding Minute. I My Lord, Eafl: India Houfe, 19th March 1812. N addition to the fubjedt on which we had the honor to addrefs your Lordfhip yefterday, there are two points to which we are very defirous of calling youratten- tion before your Lord Ihip leaves the India Board. The firft point, which is mentioned in the hints fubmitted to your Lordfh'p on the 4th inltant, is the diviile)iil of ten fhiliings per cent, paid to the Proprietors, under the Ad of the 33d of His prefent Majeily, cap. 52, fee. 1 24, iVom the feparate fund of the Company. .i. When it was in contemplation to increafe the capital flock of the Company iri 1797, it was found that the payment of this dividend to the Proprietors of the new {lock would have exhaniied the feparate fund, previous to the expiration of the prefent term of the Company's exclufive trade. To guard againfl this, a claal'e was inferted in the Aft of 37th of His Majefty, cap. 31, authorizing the payment of a dividend of ten fhiliings per cent, to the proprietors of the increafed flock, from the annual profits of the Company's trade. The additional flock has not been raifed, and the feparate fund has been found adequate to the payment of the dividend of ten fliiUings per cent, upon the ex- illing capital hitherto, and will continue to be fo until the year 1819, when it will be nearly exhaufted. As the Proprietors have derived from the dividends little more than five per cent, on the capital, it appears to us, that, on the renewal of the Company's pri-- vileges, they may entertain a reafuiiable expeftation of conrinuing to receive this addition of ten fliillings to the ufual dividend of ^"'lo per cent. ; and as the feparate fund will not, as flated above, be fuflicient for the purpofe, during any probable term, for which the renewal m.ay be granted, v.'e take the liberty of fubmitting to your Lordfliip's confideration the expediency of providing for the additional dividend, out of the general profits of the Company. The other point to which we requeft your Lordfhip's attention is, the payment of the Property Duty on the dividends. The Court of Direclors and Proprietors have always confidered it a hardfhip, that this duty was not allowed co be paid from the profits of the Company ; we have the honor to enclofe copies of letters on this, fubjeft, which were addrelfed to Lord Caftlereagh in 1003 and 1804. and we flatter ourfelves that the arguments they contain will induce your Lordlhip, when the queftion of renewing the privileges of the Company is under difcufhoii, to recom- mend that authority may be given to make the Property Duty on the dividends a charge on the general profits of the Company. As the profits of the Company were fpecifically appropriated by the Act of 1793, fome difficulty may pofTibly, from that circumitance, have occurred in conceding this Dcputa:ion Letter. No. XXV- . Oepaiatioa Letter. ( 44 ) this point ; but,3s, in any tjew arnnojement, the fubjpfl: of appropriation will necef- farily undergo confiderable modification, we fhouli hope that the objedion formerly lu-ged may eiifily be obviated. If it fhould be finally deterinined, that the funender of any confiderable propor- tion of the exci\ifive privileges of theCompany is to be made, it appears to be the more neceflai-y, that fonie boon fhould be held out to the Proprietors, in alleviation of tb'i facrifices to which theirconfent may be required ; we hope, ihereforcj we may be permitted to indulge a confident expe£tation of your Lordfhip's favourable confidera- tion of the points now fubraitted. We have the honour to be. My Lord, Your Lordfliip's moft obedient humble fervants, ' ^ (Signed) JACOB BOSAN^UET, The Righ t Hon . " HUGH ING LIS , Lord Vifcount Melville, W. H. KLPKINSTONE, "&c". Sic. 8cc. EDWARD PARRY, CHARLES MILLS. Ko. xxvr. Secret Coiiitj 24 March 18 la^ No. XXVL At a Secret Court of Direftors, held on Tuefdi?y]the 24th of March 1S12.- 'T^HE Chairman from the Committee of Correfpondencc laid before the Court a ■*■ letter Irom Lord Melville to the Chairman and Deputy, dated the 2i{l inftant, ftating his fentiments in reply to their letter of the 4th inftant, and enclofing A paper containing " Obfei^ations on the Hints fuggefled by the Deputation of the « Court of Direftors, 3d March 1812." ' The Chairman alfo laid before the Court a letter from Lord Melville to the Chair- man and Deputy, dated the 23d inftant, in reply to the two letters which the Depu- tation from the Court of Directors addrelfed to his Lordfiiip on the il>th and jgth inftant. The fame were read. The Chairman then moving the Court, Ordered, That the feveral papers now read, together with the other correfpond- encc, which has paffed, refpefting the negociation for the renewal of the Company's exclufive privileges, be laid before the General Court to be held to-morrow, and printed, as fpeedily as poffible, for the information of the Proprietors. No. XXVII. Ld. Mclvilk's Leuer. No. xxvir. Letter from the Right Honorable Lord Vifcount Melville to the Chairman and Deputy Chairman, noticed in the preceding Minute. Gentlemen, India Board, 21ft March 1812. I HAVE delayed anfwering your letter of the 4th inftant (received the 6th) until I could tranfmit to you, at the fame time, replies to the feveral propofitions brought forvirard by the Deputation of the Court of Diredors, at our conference on the 4th Inftant. In fubniitting to you thefe obfervations, however, I beg to be diftin5:ly underftood, as conveying to you only the prefent fentiments of His Majefty's Government on the feveral points to which the propofitions relate. Public diCcuffion on fuch an import- ant queftion, may poffibly produce an aiieration of opinion on fome of the details j and though the fubjeft has been fully confidered, it may be deemed necefiary, in the further progrefs of the meafure, topropofe, on fome points, legulations of a dif- ferent defcription from thofe which are luggefted in the cnclofed obfervations. The ( 45 ) The Court of Directors are pcrfeftly correifl in fiippoflng thiit it Is no\v, as It h:'3 ^■o• XXVI!. been for a confiderable time palL the iixed intention of His Maieftv's Governnienr, to ■" withhold their concurrence from any propofition which might be fubmitied to Par- La-.Mfiviue» liament for continuing to the F'afl: India Company their privileges of exclufive trade on their prefent footing. It is unneceflaiy now to liifcufs, whether the provifions of the Aft of 1793 (by which the Company's monopoly was fo far relaxed, as to adnxft the goods of private merchants to be conveyed in the Company's (hips) have in anv degree fulfilled the expccLations or intentions of the Legillature. It will not be denied that the facilities granted by that aft have not been fatisfaftory, at lealt to the mer- chants, either of this coiintry or of India. They have been the iouice of conllant difpute, and they have even entailed a htavv expence upon the Company, without afibrding to the Public any adequate benefit from fiich a facrifice. You will do me the juliicc to recolleft, that in all our difcufllons on this fubjeft, both recently and on former occafions, the admiirion of the (hips of merchants in this countrv into the trade of India, In concurrence with thofe of the C No. XXVII. be opened to all Britiih flilps, jn tlie manner already pointed out, there feems tobe no fufficient veafon for breaking in upon the fyflem of our navigation laws, by per- Ld.Melvrk's nutting any other than Biitilli (liips, with a due proportion of Britiih feamen, to ^^*^''' import colonial produce into the United Kingdom. I have not thought it requifite, in this letter, to trouble you with any obferva- tions on fevera! points adverted to in your's of the 4th inftant, which are alfo no- ticed in the enclofed paper of hints and of replies to the feveral propofitions. I ihall abflain, aifo, from any lemaik.s on the cdculations detailed in your letter, and which are introduced more with the view, as I conceive, to vindicate the Company in their pafl nianagement of the exclufive trade to India and the government of their territorial poflefTions, than to any praftical rjfults to be derived from your flatement, in relation to the matters at prefent in difcui!ion between His Majedy's Government and the Court of Directors. The Committee of the Houfe of Com- mons on Eall India Affairs have already fubmiited to the Houfe detailed ftatements on that piirt of the fubjecl, and in any further reports which they may prefent they will probably complete the inveftigation. '■ .- ' I am. Gentlemen, Your moll obedient humble fervant. To the Chairman and Deputy Chairman (Signed) MELVILLE, of the Eaft-lndia Company. No. XXVIII. Obfervations on the Hints fuggefled by the Deputation of the Court of Directors, 3d March 1812, adverted to in the foregoing Letter. N XXVIII *^5 2d, and 3d. IT is deemed advifeabie, with a view to the fecurity of the " ' revenue and to other objeds connefted with the trade to China, to leave it on its Obfervations prefent footing, and toguard by proper regulations, againfl any encroachment on that on Hiiiu. brar.ch of the Company's exclufive privilege. ^ 4th. This propofition ought to be acceded to ; with the refervation, however, that the Governments in India ought to be reftrifted from impofing new duties, with- out the previous fandion of the authorities in England. 5th. The Company are underftood to have, in fome degree, the power of re- gulating the inteiT.al trade of faltpetre in India ; it appears, therefore, to be fcarcely nectflarv to mpofe any other reftric'tions on the exportation of faltpetre from India, than fuch as may be deemed expedient for political objedls, efpecially in time of war. 6th, The adoption of the regulation fuggeded in this propofition, will probably tend to the fecurity and advantage of the public revenue, in collefting the duties on all articles imported from the Eaft Indies and China, as well as other countries to the eaftward of the Cape of Good Hope. 7th. The Company ought at leafl to be indemnified from the cha-ges incurred by this management. Sth. There does not appear to exiil any fufficient reafon for preventing fhips- from clearing out for the Lad Indies from oilier pons of the United Kingdom bo- fides the port of London. 9th. It will be neceffarv, either by the regulations fuggefled in this propofi- tion, or by others of a fimiiar defcription, to guard againll the evil therein de- fcribed. loth. It will probably be necelTary to regulate the exportation of military (lores to the Eail-lndies, and alfo of naval (lores in time of war. 1 ith. It is underftood that the objeft of this propofition is to fecure to the manu- fafturers of piece goods in India the continuance ot regular and conllant employment, under the fame fyflem of local management, for their benefit, which prevails at pre- fent. If that objeft is likely to be attained, without continuing the reflridions men- tioned ( 47 ) Obfervatioiii on lIJQtt tioncd in this propofition, it certainly would be defirable that they fiinuiii ccHfe, No. XXVIII except in fo far as it may be neceiTary to regulate the importation of Indian piece goods, with a view to the protedion of Britiih manufadures. 12th. As no fuch reftriftlon exifts at prefent in the importation of filk by private merchants, and as the reafons which have hitherto been adduced, on the part of the Court of Direftors, for eftablifliing fuch a regulation, though entitled to much -i confideration, do not appear to be conclufive, it will fcarcely be deemed expedient ' to agree to this propofal. 13th. This fuggeftion appears to be perfectly reafonable. 14th. It is underflood, that this propolition is founded on a principle of guard- ing againfl: the dangers to which veffels of lefs burthen than four hundred tons would be expufed on a voyage to the Eafl-lndies, and alio of providing for the fecuritv of the revenue, which nught be affefted by permitting importations in inialler vellcls, Thefe reafons, though entitled to due confideration, do not appear to be fufHcientlv ' ftrong to jullify the propofed reftridion, or the making a ciiftincUon, in that refpect', between fhips trading to the Eaft-Indies and to other countries. 1 5th. This feems to be reafonable. t6th. It will be neceflary to provide, by proper regulations, for the care and maintenance of thefe perfons, and for their return to the Eaft-Indies. 17th. This propofal would be wholly inadmiffible, unlefs it were limited to fuch unexpired engagements as do not extend beyond March 1 8 1 4, when the Company's prefent term of exclufive privileges will expire ; but the Public may fairly look to the Company to bear this burthen, as a compenfation, to a certain extent, for the continuance of the exclufive trade to China. 1 8th. It will be indifpenfably neceffary, for the purpofe of guarding againft the inconvenience herein alluded to, that the exiding reftrictions fhall be continued, with fuch alterations as may be requifite, in the new fyflem of trade. 19th. The number of His Majefty's forces to be maintained by the Eafl-India'^ Company may, without inconvenience, be limited, as herein fuggefted. It will be neceffary, however, in confequence of the increafed extent of the Britifli territories in India, fince the pafling oi the A& by which the number is at prefent regulated, that a confiderable addition fhould be made to it. , ' fi 2cth. It will be neceffary, that the prefent fyftem of accounting between the Eaft-India Company and the Paymafter General (liould be abolifhed, and new regu- biions enaifted. 2 1 ft. Thefe demands mufl neceffarily be arranged on the principles fuggeR^d by the Cuinniittees ot the Houfc of Commons, who have reported upon the fubject 0^ the accounts herein referred to. ]f it were neceffary or proper, in difcuffmg the futur^ regulations which it may be deemed advifable to eftablilh, refpefting the atlairs of the Eaft India Company, there would be no difEculty in demonflrating. that the amount of force maintained in India has not gone beyond what was requifite for the defence and fecurity of the Company's poffeffions, and for other operations, intimately and in- feparably connected with thofe objects. 2 2d. The Proprietors ought to be fecured, as at prefent, in their dividend of ten and a half per cent. 23d. The whole of the furplus funds of the Eaft India Company, at home an"d abroad, ought to be applied, in the firfi: inftance, to the reduction of debt, till it is reduced in India to the fum of ten millions, and the bond debt at home to the fum of three millions, after providing for a proportionate encreafe of the capital ftock of the company, if they Ihall think fit to avail themfelves of the power now vefted in them by law to that effeft. 24th. It is intended to i'"ubmit to Parliament a propofition to that effed, or fimilar in fubftance. 25th. If the objed adverted to in this propofiiion can be obtained by exclufion from the dominions of the Emperor of China, and a prohibition to import the pro- duce of that country without licence from the Company, it will be preferable to the mode herein fuggefted. Ihere feems to be no reafonfor excluding the private trade from the Spice Iflands. No. XXIX, Lelter, C 43- > " No. XXIX. Letter from the Right Honorable Lord Vifcount Melville to the Chair- man and Deputy Chairman, alio noticed in the Minute above- mentioned. Gentlemen, India Board, 23d March 1812. No. XXIX. T Have had the honor to receive the two letters which the Deputation from the ^ Court of Direftors addreffed to me, on the 18th and 19th inflant. Ld. Mtlville'* ]f jg undoubtedly reafonable, that the further term now propofed to be granted to the Eaft India Company of their privileges of exclufive trade and the jj;ovfcrnment of the Britilh territorial poffeffions in India, fhould be for fuch a period, as may be fufficient, if unforefeen contingencies do not arife, to produce a confiderable reduction of the debt, both in India and at home. The experience, however, of the laft twenty years, has fufficier.tly demonlfrated, that it is impoffible to calculate, with any degree of accuracy, on what may be the ftate of the Company's affairs in India at the expiry of another period of the fame duration. If they are profperous, the iame term as was granted in 1793 will be fufficient for the purpofes defcribed in your letter of the iSth; but if untoward events fhall occur, and the Company fhall be again engaged in expenfive wars, it will be defirable that Parliament fhould have the opportunity of reconfidering the fubjeft, and of making fuch new provifions as the cafe may appear to require. Under thofe circumdances, I do not think it will be advifable to propofe a longer term than what was granted by the Act of 1793, viz. twenty years from the expiry of the exiifing period, with three yeras previous notice. I have no hefitation in admitting that the fuggcftion in your Letter of the !9th inflant, relative to the continuance of the dividend of ten fliillings per cent, on the cxi.^.in"- capital of the Eafl-India Company, after the feparaie fund fhall be exhaufled, is reafonable, and that it will be proper to comply with it. Your propofition, in regard to the payment of the Property Tax, requires much more confideration, and I cannot, at prefent, bring myfelf to concur in the expediency t)f agreeing to fuhmit it to Parliament. A confident expeftation may be entertained, from the ffate of the Company's revenues in India, and from the reduftion of expenfe vshich has already taken place, or v.hich may flill be efieded, both at home and abroad, by means completely within your power, that a large annual furplus will be available towards the reduction of debt ; but when it i« recolleded, that though the amount of the debt in India has recently been confiderably di- rainifhed, it has been proportionably encreafed at home, and cnfidering, alio, that proviiion muff be made, for the poffible contingency of the Company having to pay, in this country, the intered, not only of their large debt at home but alio of the whole debt of India, I do not think that it would be wife or prudent, at leafl till after the exprrience of a few years, to make an addition to the perman nt charges of the Company -at home, to the- amount of the Property Tax upon their dividends. lam, Gentlemen, Your mofl obedient humble fervant, The Chairman and Deputy Chairman (Signed) MELVILLE- of tlie Eaft India Company. •^^^g'^^^ COPIES of the CORRESPONDENCE that has taken place between The Prefident of the Commlflioners for the Affairs of India, and the Chairman and Deputy Chairman of the Court of Diredtors of The Eafl India Company; — together with the Minutes of the Court of Dire6lors of the faid Company ; — refpedling the Renewal of their exclufive Privileges : As laid before the Proprietors of E all India Stock, at their feveral General CouitSj fubfequent to the 25th of March 1812. R At a Secret Committee of Correfpondence, the 31ft March 18 12. E A D again, and confidered. Letter from Lord Melville, dated the 2 1 ft March ; and his Lordfiiip's Obfervations on the Hints. AT a General Court of the United Company of Merchants of England trading to the Eaft Indies, held on Thurfday the 2d April 1812 ; — MINUTES of the laft Court, of 25th ultimo, were read. The Chairman acquainted the Court, that it was aflembled for the purpofe of taking into con- fideration the Papers which were laid by the Court of Directors before the General Court on the 2 i;th ultimo. It was then moved ; and, after a mature deliberation, Refolved unanimoufly, Th^at this Court, having perufed the Papers laid before them at the laft General Court, defire to exprefs the high fenfe which they enter- tain of the great ability, zeal, and fidelity, with which the Diredtors have main- tained the intereft of the Eaft India Company. They return them thanks for the powerful and convincing arguments by which they have fliown the danger which would await the Briiifh Empire from opening the Trade of India, and the immenfe advantages which the nation has derived, in ftrength, revenue, territory, and charafter, from the capital and the exertions of this corporation. That although this Court will feel it their duty, on all occafions, to bow to the determination of the Legiflature, they cannot but obfcrve with extreme concern,, that no propofiticn is fuggefted of an increafed or further dividend, either now or hereafter, or advantage of any kind whatever, to the proprietors of Eaft India ftock ; notwithftanding the negotiation for the renewal of the Charter in 1 793 begun with a propofal for an increafe of dividend of two per cent, which Charter opened the trade but in a limited and partial degree ; and notwithftanding that while fuch great and progrelFive advantages have been obtained for the public at large, the proprietors themfelves have made little more than common intereft of their money. That now to be called upon to part with an undefined proportion of a trade thus eftabliftied, and maintained hitherto at their fole expenfe, without any confideration for the fame, feems to them to be wholly inequitable. Under thefe impreffions, this Court confides to the Honourable Court of Dire£lors the care of its interefts in the further negotiation for a new Charter, trufting to the (3 2. J A juftice 2 CORRESPONDENCE between PRESIDENT of INDIA BOARD juftlce of their fellow citizens, as well as to His Majefty's Government and to Parliament, that they Ihall receive that liberal treatment which they regard them- felves as fo eminently entitled to at the hands of their Country. And that the Direftors be requefted to report their proceedings from time to time to this Court. That this Court cannot contemplate the effential change propofed in the con- futation of the Company, by an unreftrained trade to and from India, without great concern and apprehenfion ; not fo much on account of the injury to which it will fubjeft the Company in their commercial privileges and profits, as on account of the tendency which fuch a change muft have to affeO: the fyftem eftablifhed by the Legiflature, for the civil and political government of the Com- pany's territorial poffelTions, whilfl it is not at all likely to afford to the commercial interefts of this country the advantages expefted from it. Should, therefore, the opening of the trade to India, be the ultimate deter- mination of Parliament, this Court cannot but exprefs its hope that all due care will be taken to accompany the enlargements which fhall be given to individuals in thsTndian trade with fuch regulations as Ihall moft effectually guard againfl the dangers to which thofe enlargements might expofe the exifting fyflem of Indian adminiftration. Draught of a Petition to the Honourable Houfe of Commons was then read, being as follows : To the Honourable the Commons of the United Kingdom of Great Britain and Ireland in Parliament affembled ; The humble Petition of the United Company of Merchants of England trading to the Eaft Indies ; Sheweth, THAT, by an Aft of Parliament made and paffed in the 33d year of the reign of His prefent Majefty, intituled '•' An Aft for continuing in the Eaft India Com- pany for a further terra the poffeffion of the Britilh Territories in India, together with their exclufive trade, under certain limitations ; for eftablifhing further re- gulations for the government of the faid territories, and the better adminiftration of juftice within the fame ; for appropriating to certain ufes the revenues and profits of the faid Company, and for making provifion for the good order and government of the towns of Calcutta, Madras, and Bombay ;" reciting, that it was expedient that the exclufive trade of Your Petitioners, within the limits of their Charter, which, by an Aft made in the 21ft year of His Majefty's reign, for eftablifhing an agreement with Your Petitioners, and other Purpofes, was continued to them for a terra thereby limited, fhould be further continued to them and their fucceffors, under certain limitations and reftriftions, for a term of twenty years, to be computed from the ift day of March 1794, liable to be dif- continued at or after the end of fuch period, upon three years notice previoufly given by Parliament for that purpofe ; and that during the faid further term all the territorial acquifitions obtained in the Eaft Indies, which, by an AA made in the 7th year of His Majefty's reign, for eftablifliing an agreement for the payment of a certain annual fum, for a limited time, by Your Petitioners, in refpeft of the faid acquifitions and the revenues thereof, and by fubfequent Afts, were continued in the poffeffion of the faid Company, together with the territorial acquifitions then lately obtained there, with the revenues of the fame refpeftively, Ihould remain in the poffeffion of Your Petitioners, without prejudice to the claims of the public or of Your Petitioners, fubjeft to fuch powers and authorities for the fuperintendance, direftion, and controul over all afts, operations, and con- cerns which related to the civil or military government or revenues of the faid territories, as had been then already made or provided by any Aft or Afts of Parliament in that behalf, and to fuch further powers, and under and fubjeft to fuch other rules, regulations, and reftriftions relating to or concerning the faid civil government, and the appropriation of the faid revenues, as fhould be then made and provided by the authority of Parliament ; it was thereby enafted, that the faid territorial acquifitions in the faid former Afts mentioned, together with the territorial J and CHAIRMAN, kc. of The EAST INDIA COMPANY. 3 territorial acquifitions then lately obtained in the Eall Indies, with the revenues thereof refpedively, fhould remain and continue in the pofTeflion of Your Peti- tioners for and during the further term by that Ati granted to them in the faid exclufive trade ; fubjeft neverthelefs to the feveral regulations and provifions in that Act contained ; and by tlie faid A£t His Majefty was empowered to nominate, conftitute, and appoint, during His pleafure, fuch Members of the Privy Council, of whom the two Principal Secretaries of State and the Chancellor of the Ex- chequer for the time being fhould always be three, and fuch otiier two perfons as His Majefty ihould think fit to be, and who Ihould accordingly be and be lliled Commiffioners for the Affairs of India ; and the faid Board of Commif- fioners were by the faid A6t invefled with fuch full power and authority to fuper- intend, dire£t, and controul all a£ts, operations, and concerns which in any ways fhould relate to or concern the civil or military government or revenues of the faid territories and acquifitions in the Eaft Indies, fubjed neverthelefs to fuch direc- tions, rules, regulations, and reltrictions, and to fuch appropriations of the faid revenues as were by that Act made, provided, and eftablifhed ; and it was further enafted, that Your Petitioners and their fucceffors ihould have, ufe, and enjoy, and fliould continue to have, ufe, and enjoy the whole, fole, and exclufive trade and traffick, and the only liberty, ufe, and privilege of trading, trafficldng, and exercifing the trade or bufinefs of merchandize in, to, and from the Eaft Indies, and in, to, and from all the iflands, ports, havens, coafts, cities, towns, and places between the Cape of Good Hope and the Straights of Magellan, and limits in an Adt made in the 9th year of the reign of King William the Third, or in a certain Charter of the 5th Day of September, in the i oth year of the fame King, menrioned, in as ample and beneficial manner as Your Petitioners could thereby or otherwife lawfully trade thereto, fubjeft neverthelefs to the feveral Umita- tions, conditions, and regulations in that Aft contained, and alfo fubjeft to the provifo therein-after contained for determining the fame, any former Aft or Afts, matter or thing to the contrary notwithftanding ; and it was funher enafted, that Your Petitioners fhould at all dmes thereafter (fubjeft as aforefaid) have, hold, and enjoy, and be endtled unto all and lingular the profits, benefits, and advan- tages, privileges, franchifes, abilities, capacides, powers, authorities, rights, remedies, methods of fuit, penalties, forfeitures, difabilides, provifions, matters, and things whatever, which by any former Aft or Afts of ParUament, or by any Charter or Charters founded thereupon, or by any claufe or claufes in thefjiid Afts or Char- ters contained, were enafted, given, granted, provided, limited, eftablifhed, or declared, to, for, touching, or concerning Your Petitioners, either by the name of " The General Society endtled to the Advantages given by an Aft of Parlia- " ment for advancing a Sum not exceeding Two Millions for the Service of the " Crown of England," or the Body Politic and Corporate called by the name of " The Englifh Company trading to the Eaft Indies," or the Body Politic and Corporate called by the name of " The United Company of Merchants of Eng- " land trading to the Eaft Indies ;" and not by that Aft, or any other Aft then in force, repealed or altered, according to the tenor and true meaning of the faid Afts and Charters, and of that Aft, freed and difcharged from all provifoes and conditions of redemption and determination in any former Aft or Afts contained, and the fame and every of them were and was thereby ratified and confirmed, and to continue to be held and enjoyed, and be praftifed and put in execudon by Your Petitioners and their fucceifors, for the better or more eifeftually fettling and fecuring to them and their fucceffors the whole, fole, and exclufive trade to the Eaft Indies and parts aforefaid, and for the preventing trade thereto contrary 10 the true intent and meaning of that Aft, and for fecuring alfo their poffeflions, eftates, and effefts, and governing their affairs and bufinefs in all refpefts as fully and effeftually as if the fame profits, benefits, advantages, trade, privileges, fran- chifes, abilities, capacities, powers, authorities, rights, remedies, methods of fuit, penalties, forfeitures, difabilities, provifions, matters, and things were feverally repeated and at large re-enafted in the body of that Aft, fubjeft neverthelefs to fuch reflriftions, covenants, and agreements as were contained in the faid Acts or Charters then in force, and not therein or thereby repealed, varied, or altered, and lubjed alfo to the feveral enaftments, conditions, Umitations, and provifoes in that 4 CORRESPONDENCE between PRESIDENT «/ INDIA BOARD that A& contained ; and it was thereby further enacted, that at any time, upon three years notice to be given by Parliament after the ifl: day of March, which would be in the year of our Lord i8ii, upon the expLration of the faid three years, and upon payment made to Your Petitioners of any fum or fums which, under the provifions of any Act of that prefent Seffion of Parliament, fliould or might, upon the expiration of the faid three years, become payable to Your Peti- tioners by the public, according to the true intent and meaning of fuch Aft, then and from thenceforth, and not before or fooner, the faid right, title, and intereft of Your Petitioners to the whole, fole, and exclufive trade to the faid Eaft Indies and parts aforefaid fhould ceafe and determine ; and it was thereby farther enafted, that nothing in the faid provifo lafl therein-before contained, or in any provifo in the faid Aft of the 9th year of King William the Third, or in the faid Charter of the 5th day of September in the loth year of his reign, or in any other Aft or Charter contained, fhould extend, or be conftrued to extend to determine the Corporation of Your Petitioners, or to hinder, prevent, or preclude Your Peti- tioners or their fucceffors from carrying on, at all times after fuch determination of the right to the fole, whole, and exclufive trade as aforefaid, a free trade in, to, and from .the Eaft Indies and parts aforefaid, with all or any part of their joint flock in trade, goods, merchandizes, eftate, and elFefts, in common with other the fubjefts of His Majefty, His heirs and fucceffors, trading to, in, and from the faid parts or limits ; and by the faid Aft it is enafted, that for and during fo long time as Your Petitioners fhould be entitled to the whole, fole, and exclufive trade and traffick in, to, and from the Eaft Indies and other places within the limits of their Charter, fubjeft to the provifions, regulations, and limitations in that Aft con,, tained, the clear profits arifing from the faid territorial acquifitions and revenues in India, after defraying the charges and expences of collcfting the fame, fhould be applied and difpofed of to the ufes and purpofes therein mentioned and expreffed ;, and alfo that, during the continuance of the exclufive trade to Your Petidoners,. the net proceeds of their fales of goods at home, with the duties and allowances arifing by private trade and all other profits of Your Petitioners in Great Britain, after providing for the payment of bills of exchange then already accepted by Your Petitioners, as the fame fhould become due, and for the current payment of other debts, intereft, and other outgoings, charges, and expences of Your Peti- tioners, their bond debt always excepted, fliould be applied and difpofed of in the manner therein mentioned as by the faid Aft, reladon being thereunto had, may more at large appear ; that the notice required by the faid Aft of Parliament hath been given by the Speaker of Your Honourable Houfe, for determining the exclu- five trade of Your Petitioners on the loth day of April 1814 ; and that, fince the faid Aft was palTed, further territorial acquifitions, yielding a large revenue, have been obtained by Your Petitioners, and fuch acquifitions have been annexed to the feveral governments of Your Petitioners in the Eaft Indies, and fundry debts, to a large extent, beyond what are mentioned in or referred to by tlie faid Aft, have been incurred by Your Petitioners, in the defence and proteftion of the Bri- tifh poffeiTions in India, and by reafon of wars in which the Bridfli Nation has been engaged with European powers ; that fuch debts bear intereft, and fome of them are due in the Eaft Indies, and others of them have been difcharged by Your Petitioners, by means of money raifed on their credit in this country, under the authority of Parliament ; and that, by virtue of the terms of the obligations for other part of fuch India debt, further fums, to a large amount, will be payable fhortly in this country, for which purpofe it will be necelTary for Your Petidoners to raife a further fum of money here ; that the fyftem eftabli/hed by the faid Aft, for the government of the territorial acquifitions in the Eaft Indies, for the ma- nagement of the revenues thereof, and for the general conduft of the affairs of Your Petitioners, hath been approved by experience ; but by the appropriations made by the faid AQi of the profits arifing from the territorial revenues in India, and of the profits of Your Petitioners at home, appear to Your Petitioners to be inapplicable to the prefent ftate of the Indian debts and refources, and of the concerns of Your Petitioners ; that Your Petitioners believe that it is undeniable that the exclufive trade carried on by Your Peduoners has been a great pofidve advantage to the nation ; and although they do not prefume to ftate, as an incon- trovertible and CHAIRMAN, &c. of The EAST INDIA COMPANY. 5. trovertible fa£t:, that greater public benefit would accrue from its being continued in its prefent ftate tlian from its being any further opened, yet Your Petitioners do venture humbly, but confidently, to aifure this Honourable Houfe, that the trade with China could not be opened in any degree without extreme danger ; that if it fliould not be feen lit to enlarge the term now held by Your Petitioners in the whole of the trade whicli they now enjoy without qualification, Your Peti- tioners are ready to fubmit to fuch regulations as fhall be juit, a!ul as Parliament in its wifdom fhall enact, for the condud of the commercial intercourfc of His 3T:'.iefl:y's fubjeds with thofe places which are within the exclufive limits granted to Your Petitioners ; that on account of the length and variety of the matters neceflarv to be confidered and prepared in relation to the fubjevil of this Petition, Your Peti- tioners were unable to prepare a Petition, praying leave to bring in a Bill or Bills relative to the Indian territories and trade, until the time limited for p: eientino' petitions for private bills was expired ; Your Petitioners th-jrefore muil humbly pray, that leave may be given to Your Petitioners now to prefent a petition to this Honourab! ? Houfe, praying that leave may be given to bring in a Bill or Bills for continuing the pofl'eifion, government, and management of the territorial acquifii tions in the Eaft Indies in Your Petitioners, fubjed to regulation, and for altering the appropriations of the profits arifing from the Indian revenues ; and for enabling Your Petitioners to raife fuch fums of money, or to contract fuch pecu- niai-y obligations as their affairs may require, in refpe£t of the payment in this country of debts originally contrafted in India ; and for fettling the trade to the Eaft Indies and China, and other places, from the Cape of Bona Efperanza to the Straights of Magellan ; or that Your Petitioners may have fuch other relief as their cafes may require. And Your Petitioners, as in duty bound, fhall ever pray. It was then moved ; and on the queftion, Refolved, That this Court do approve the above Petition. The Court then, on the queftion, adjourned. AT a Meeting of the Deputation, the 4th of April 1812. THE Chairman ftated, that himfelf and the deputy had a conference yeflerday with the Prefident of the Board of CommifTioners. Read again, and confidered the hints and obfervations on them. AT a Secret Committee of Correfpondence, the 6th April 1812. THE Chairman ftated to the Committee, that the Chairs had a conference yederday with the Prefident of the Board of CommilFioners. Letter from Lord Melville, dated the 2ifl March, was read and further confidered. AT a Court of Diredors, held on Monday the 6th April 181 2. On a motion, Ordered, That the Company's feal be affixed to their Petition to the Honourable Houfe of Commons, which was approved in Court, and in the General Court on the 2d inftant ; alfo, to a Petition for leave to prefent the fame ; and that fuch members of this Court as are members of the Houfe of Commons, be req^aeiled to prefent the fiiid Petitions. AT a Court of Diredors, held onThurfday the 9th April 18 12, On a motion, Refolved, That agreeably to the Court's refolution of the 2d ultimo, appointing a deputation of Directors to confer with His Majedy's minifters on the fubjcct of a renewal of the Company's exclufive privileges, the under-mentioned gentlemen be appointed for that purpofe ; viz. The Chairman, the Deputy Chairman, the Honourable William Fullarton Elphinflone, Jacob Bofanquet, Efquire, Charles Grant, Efquire, George Smitii, Efquire, Edward Parrv, Efquire, William Aflell, Efquire. (32-) ' B AT & CORRESPONDENCE bttit'een PRESIDENT of INDIA BOARD AT a Meeting of the Deputation, the i ith of April i8ia. THE Chairman dated, that the deputy and himfelf had a conference with the Earl of Buckinghamfliire, on Tuefday laft. Read again the hints and obfervations, and deliberated thereon as far as article twelve. And adjourned to Monday next at two o'clock. AT a Meeting of the Deputation, the 13th April 18 12. Proceeded in deliberating further on the hints and obfervations, And adjourned to Wednefday next. AT a Meeting of the Deputation. Draught of a letter to the Prefident of the Board of Commiffioners was read and approved. And the Chairman was requefted to fubmit the fame to the Court of Directors this day. AT a Secret Court of Directors, held on Wednefday the 15th April 18 12. THE Chairman from the Committee of Correfpondence, fubmitting to the Court draught of a letter to the Prefident of the Board of Commiffioners for the affairs of India. The fame was read, and unanimoufly approved. My Lord, Eaftlndia Houfe, 15th April 1812. THE correfpondence between the Prefident of the Board of Conimiflioners on the part of His Majefty's government, and the Court of Direftors of the Eaft India Company, on the fubje<5l of the renewal of the Company's charter, having been laid before the General Court of Proprietors, we now, in confequence of the refolutions of that body, propofe to ourfelves the honour of continuing the correfpondence with your Lordfhip, and efpeciaily to reply to the letters of the late Prefident, dated the 2 ill: and 23d of March, and to his obfervations accom- panying the former of thefe letters. In the firfi: place, however, permit us to offer fome remarks on the outlines of the negotiation, as far ss it has hitherto advanced, and on the oppofition which has begun to fhow itfelf to certain propofitions refpefting the neceflity and importance of which His Majefly's Government and the Eaft India Company appear to have entertained fimilar fentiments. It is manifeft from the letters written on the part of the Court of Directors, that they have contemplated, with the utmoft reluctance, fuch an enlargement of the trade to India as feemed to be defired by His Majefty's Minifters, becaufe they believed that the commercial advantages expected from it to this country would not be realized ; and feared that it might eventually endanger the fecurity of the Bvitifti poflc-ffions in the Eaft. We muft defire on the part of the Court of Diredtors, diftinctly, and in the face of the country, to ftate this opinion, not as advanced without convitStion, to ferve a caufe, but as the genuiiie refult of fuch knov/ledge and e?:perience as the Court pollefs, upon a fubjefl: refpefting which they have better means of information than any of thofe affociations who are nov/ eager to take full pofi'effion of the Eaftern trade, and upon which alfo it is certainly material that the public ftiould form juft ideas. We have, indeed, yet feen no arguments advanced in anfwer to thofe reafons which the Court have offered againft the opening of the trade, and particularly againft the expectiaion of the great increafe to be produced by fuch a meafure in the exports from this country to India, and the imports thence. Lord Melville has fignificd his concurrence with the Court iu thinkmg that the public and CHAIRMxVN, Sec. of The EAST INDIA COMPANY. 7 public will be difappointed, at leafl at firfl, in this expeiflatlon ; and though his Lordlhip has laid that " the Court do not appear to have liicceeded in ellablUh- " ing the propofition, that any detriment will arifc to the public intorcll:, either " here or in India, or ultimately even to the intcrefl: of the Company tlicmfelves, " from the introduction of jirivate adventurers," we mull beg leave to obferve, firft, that we cannot doubt " the introduftion of private adventurers," which his Lordfliip had in view, was iefs extenfivr than is now likely to be contended for by fome portions of the public, and was connected in Iiis mind with limita- tions and reftridions in the conduft of the trade, which thofe who claim the largeft opening of it exclude ; and fecondly, that feveral reafons which the Court have urged, to fhow that much detriment woultl arife from a general opening of the trade, remain unanfwered, either in his Lordfiiip's letters, or in any of the public refolutions we have yet feen. Until of late the general language held on the fubjett of the Indian trade was rather that the merchants of Great Britain fhould be allowed to apply their induftry to I'uch branches of it, and to fuch ports of the Indian feas, as the commerce of the Company did not embrace, than that they fhould invade the portion of the rrade which the Company carried on. But now little is faid about the advantages to be derived from adventures to the unexplored parts of India ; and the objefts likely to be moft warmly contended for, are not new acceflions of commerce to the nation, but a transfer of much of thofe branches of trade already carried on by the Com- pany in London to individuals in the out-ports. The large conceilions at fu'ft required from the Company by His Majefty's Government appear only to have encouraged the merchants of the out-ports to make Itill further demands, regard- lefs, as it would feem, of the political confequences that might enfue from a compliance with them, and apparently unaware too that the corporate capacity of theEafl India company is perpetual, and cannot be annulled, even if the qualified monopoly they have enjoyed, were to ceafe. We are confident, my Lord, it was not the intention of His Majefty's Minifters that the Eaft India Company fhould be broken down and dil'poiled of thofe faculties neceffary to enable it to perform the important part afligncd to it by the Legiflature, in the government of the Britifli Empire in the Eaft ; a part which, probably, it will be allowed to have performed well, and with more fafety and advantage to the mother country than any other fyftein hitherto thought of could have done. The benefits accruing to that government by the reciprocal aids of revenue and commerce, the powers of which are united in the conftitu- tion of the Company in a way peculiar to it, have been often feen and fully acknowledged, and were it neceffary, it would be eaiy to enlarge upon them. Thefe powers have now become fo incorporated that it is impoflible to feparate them without effentially endangering the whole of a fyftem that has proved in praftice eminently ufeful ; if, therefore, the commercial part of that fyftem were now to be deftroyed, the political fundtions exercifed by the Company would be fo weakened as necefl'arily to bring into view qucftions of the laft importance to the fafety of the Britifli Empire in India, and of the Britiih Conftitution at home. We hence affuredly rely, that the wifdom of parliament and the good fenfe of the nation in general, will refift thofe rafli and violent innovations upon the fyftem of the Company which the merchants of different towns, proceeding upon theoretical ideas, and overlooking mofl: material fates, nov.- appear to intend, without any certainty, even of extending the commerce of this country, but to the unavoidable detriment of its political interefts abroad, aiid its financial interefts at home. It was ill contemplation of dangers, Iefs immctiiate and alarming than the defigns nov/ avowed threaten, that the Court lb earneftly propoled that the renewal of the Charter fhould proceed, with certain modifications, upon the bafis of the Aft of 1793, which made the Company the medium of the enlargements of private trade ; but having been forced to depart from this preliminary principle, which, they ftill maintain, confults the true policy of this country, and the facrifice of which, they may obferve by the way, inflicts great injury upon all the Obfer- 8 CORRKSPONDENCE between PRESIDENT of INDIA BOARD the private interells and parties cnn- fideration will (hev/ the other to be yet more neccffary. — If private bargaining and trafficking with individuals, and from day to clay, were allowed in the fales of the great imports of the Company, how many doors would be open for collu- fion, impofiiion andabufe! It would be impoffible the bufmefs could go on in that way ; and the very liability of it to fufpicion would be enough to deliroy the confidence of the proprietors and the public— --Befides, the im.portations of the Company coming in fleets at ftated feafons, it fuited the convenience of all parties that the fales ihould alfo be only at ftated feafons, and pubhc, which would afford the opportunity to buyers to reibrt from all parts, foreign as well as domeftic, to thofe fales. In the ninth and tenth years of King William the Third, the legiflature inter- pofed to prohibit fale of Eafl India goods othcrwirc'than by public auftion, and in the next year of that Prince it was enafted, that E:lft India goods fhould be fold only in London, Thus the law at prefent ftands. The immediate objeft of the legiflature in thefe enaftments appears to have been the fecurity of the revenue, then appointed to be derived from the cuftoms laid on Indian goods imported. r . And nothing fo effeftual could be devifed for that fecurity' tb bring the imports to one place ; to have them lodged under the keys of government officers ; to have them fold publicly in the prefence of thofe officers ; and, finally, to have the duties, thus carefully afcertained, coUefted through the medium of the company, with hardly any charge : the whole of this pradice is the moft complete provifion that can be imagined, againft defecl, fraud, or expenfe, in realizing this branch of revenue to the public. • . • ■ -. But if this was material in the time of King William, when perhaps the revenue from Eafl India goods, including china, did not exceed .5^^100,000, how efTential mufl it be at prefent to the ftate, when that revenue exceeds four millions. With all the care now taken, and when London is the only lawful place of Importation, it is well known that teas, fliav/ls, filks (prohibited for the encou- ragement of our own manufactures), and other articles, are at the prefent time, to fome extent, fmuggled on fliore from the Eafl India fliips, notwithltanding the penalties of the law ; and when, in addition to the legal penalties, the oflending parties, if the Company's fervants, are liable to farther fines and ntultls on all illicit trade. But the hope of evading the heavy duties will ever continue to operate on perfons who look no farther than their own immediate profit or convenience. Every deviation from the eflablifhed ufage would fo far deflroy its fimplicity and efliciency, and open the way to abufes. Suppofe the importations to be allowed to go only to one out-port, a new ellablilhment, new expenfe, new trouble, would be created, and a channel opened for finuggiing, fraud, and abufe. What would it be, then, if feveral out-ports were opened for the landing and fale of Indian and Chinefe goods ? (32.) C But to CORRESPONDENCE between PRESIDENT 0/ INDIA BOARD But this ftili fuppofes the Company, either for itfelf, or for private traders, to be . the only medium of importation. If, however, all individuals were to be allowed to import, and into all the ports of the United Kingdom, elpecially if it were allowed to employ fhips of fmall burthen, which drawing little water could run into obfcurc parts in the remote parts of England, Scotland, and Ireland, where would be the prafticability of any fafe control ? Legions of Cuftom-houfe and Excife officers muft be appointed, at a very great expence ; and after all, where the duties are fo high as they are, efpecially on the articles of tea, filk, and fine mullins, fmuggling without end muft be expected. If private fliips were allowed to go to the Eaftem iflands they could find means to procure tea ; and if alfo allowed to return to the out-ports, fmuggling in that article would be by faf the moft gaining trade. At prefent, the duties upon Eaft India goods are colle£ted and paid in London, at a very fmall expenfe to Government, and to the full extent to which they ought to be paid. This follows becaufe the value of the goods is afcertained by competition at the Company's fales. Were every port to have its India Houle, where would be this general competition ? The fame goods which pay the duty ad i-alorem, would be liable to one amount of duty at Fowey, to another at Dub- lin, to a third at Port Glafgow ; all differing from each other, and from that paid at London. There would be no remedy for this inconvenience, whatever may be faid by interefted perfons to the contrary. The endtefs variety of Indian commo- dities renders it impoffible that they Ihould generally pay what are called rated duties, of fo much per piece or fo much per yard. Pepper may pay a fixed fum by the pound, and fugar by the hundred weight ; but the ftaple article of piece-goods, and many others, muft ever be rated by the value, quantity being no juft criterion. It therefore follows from what has been above obferved, that were the trade to be carried to the out-ports of the United Kingdom, the revenue drawn from Indian goods muft be greatly diminiftied, and the charges of collecting it greatly increafed. Let it be next inquired. What would be the efteft of fuch a charge on different interefts ; the perfons already poffeffed of valuable property employed for the Indian trade ; the exporters of Indian commodities from this country ; and on the Eaft India Company iti'elf? The City of London, in their corporate capacity, as confervators of the Thames, and all claffes of perfons in the metropolis, who are engaged in the building and out-fit of fliips, in the carriage, warehouling, forting, buying, and felling of the Company's goods, have alfo a dired intereft in the prefent dif- cuffion. The Eail India Dock Company have hkewife a very great and obvious intereft in keeping the Indian trade in the Port of London. "vVlth refpedl to the re-export trade in Indian commodities, at leaft three-fourths of the imports from India have hitherto been for the fupply of the continental markets. The foreign buyers repofe confidence in the regularity and publicity with which the Company's fales are conduced. When the trade was folely in the hands of the Company the particulars of their cargoes were publiflied imme- diately on the arrival of the Ihips, and diftributed all over the continent ; notices of the quantities to be fold, and periods of fale, were alfo publiftied for the like (liftribution. 1 he fales of each defcription of goods were made at ftated periods, twice in the year ; the buyers of courfe knew the ftate of the market at the time of coming to theflile, and the purchafes were made under an affurance that no more goods of fuch defcription would be difpofed of before the next fale; hence they had a certainty of the market for fix months. This eftabliflied a folid con- fidence, which very much benefited the fales ; fuch confidence has, no doubt, been much weakened fince 1793, when private perfons were partially admitted into the trade ; the chief objedt of the private trader being, as it always muft be, to obtain prompt fales to meet the payment of bills ; Eaft India goods are frequently re-fold while they remain in the Company's warehoufe, merely by a transfer of vouchers. The goods when fo fold will produce from five to ten per cent. .f ^nd CHAIRMAN, &c. of The EAST INDIA COMPANY. i : cent, more than when in the hands of individuals ; this is particularly (he cafe as to drugs, which are fubject to great adukcration. The confidence that has been entertained of the Company's regularity and fair dealing has been fuch, that the foreign buyers have given their orders to their correfpondents in London, on the faith merely of the defcriptivc marks ; anJ goods, on their arrival on the continent, frequently pafs ihrough various hands before they are finally unpacked. By the mode propofed it is to be feared the foreign buyer will ceafe to be at any certainty as to his purchafes, and the quality of the commodities ; and th's may eventually lead foreigners to look direftly to India for the fupply that has hitherto been furnifhed through the medium of this country. To fpeak now of the eflFedts of the propofed change upon the interefts of the Company : and firft, with refpe£l to the Eaft India trade, properly fo called, as contra-diftinguifhed from the imports from China ; — If the mode of private (lile of Indian goods in every town in the kingdom were introduced, would not the ftated and the public fales, to which the Company are reftrided, be continually anticipated, and confequently the fupply of the foreign markets befo alfo ; though on the whole thefe markets could not take off" more ? Could thefe fales, then, fecure a general affemblage of buyers ? Could it be reckoned upon, that the Company's goods would go off as they ufually have hitherto done at the fales ? Could the prices be expefted to indemnify the Company, when the market fliould be lowered by the neceffity or impatience of private importers ? Could the reali- zation in money of the Company's Indian imports be depended on — that realiza- tion fo neceflary to the finances of the Company ? and if not, how could the cur- rency of their affairs be preferved ? How could they pay for exports to India ? How could they maintain the fleet of fliips they now employ in their Indian Com- merce, a fleet fo neceffary for the tranfportation of troops and ftores and warlike fervices in India ? And if the Company's Indian commerce failed, and fo much of the Indian imports were transferred to out-ports, what niuft become of many of the Company's wharfs, warehoufes, and other articles of dead fl:ock, formed at a vaft expenfe in confequence of this Indian trade ? And where would be the benefit to the nauon by the change? Would it be any thing elfe but transfer- ring to Briftol, Liverpool, Glafgow, and Dublin, that which London now has ? Would it be really any acceffion of benefit to the empire at large ? And what, to look towards India, would be the effed of an unlimited trade from the out-ports of Great Britain and Ireland to all thofe regions? Would it be poflible to en- force the regulations which His Majefty's minifters think abfolutely neceffary for perventing an uncontrolled intercourfe with the Eaft, and for averting the evils that would enfue from it. Thefe queftions, to add no more, ouglit to be very clearly and fatisfaclorily anfwered, before fo great a change is attempted 5 before an order of things that has fubfiftedTo long, and done fowell, is fubverted and deftroyed. If great and fudden mnovations ought at all times to be regarded with caution and diftruft, furely ought thofe in pardcular which are propofed by men for their own imme- diate advantage. But what are the arguments with which the merchants of the om-ports may be fuppofed to enforce their claim ? Natural right ; the freedom of trade ; allowing every man to carry on his own bufinefs in his own way ; the odium of the prin- ciple of monopoly ; the advantage with which ihey would carry on the trade if they were obliged to bring back their Ibips to London, inftead of their own ports j the difadvantage to the country confumers. To all this it may be replied, that fuppofing the whole true, are thefe arguments of weight and value fufficientto overturn the prefcnt long-eftabliflied fyftemof the Company, and to endanger fo large a portion of the public revenue ? As to the arguments for natural right, &c. fuch arguments muft always be limited by con- fiderations of practical good. The only praft'cal argument that occurs in favour of the out-ports is the advantage to the merchants themfelves and to the country confumers. 12 CORRESPONDENCE beiween PRESIDENT of INDIA feOARD confumers. Now what is the amount of this advantage ? Let it not be forgotten that at prefent it is problematical, at lead, whether any great Indian trade can be eflabliflied bv the private mercliants ; that at any rate the chief part of Indian goods imported into England is intended for re-exportation ; that London is the fitted port and mart for the foreign trade, efpecially (ince the warehouling ad ; that there is realiy little confumption of Indian goods in the interior of this country ; and that if no great acceffion of trade fliould be brought to the country by the private merchants, then they will have facrificed the exifting fyftem without even attaining the objed for which the facrlfice was made. It may, perhaps, be faid, that the Hudfon's Bay Company has public fales, and that yet there are liiles on account of individuals of the fame articles the Com- pany import. But this will form no parallel cafe as to companies ; nor is there any great queftion of revenue concerned. The only article imported b\ the Hudfon's Bay Company is Furs. The fales of this article on private account are alfo by auftion ; and, it is believed, confined to London. I'he wiiole is compara- tively a fmall affair, and can be of no weight in the prefent queftion. Upon the whole, therefore, it feems moft certain, that on fuch (lender grounds with refpeft to advantage (an advantage as before mentioned, only to be taken from London for the out-ports) with fo little certainty of eflabllfhing any great trade to or from India, with fuch imminent hazard to the Eaft India Company and to the Revenue, it would be contrary to the prudent poHcy which this Nation has generally obferved, and moft unwife in itfelf to venture upon fo great an innovation, fome of the efFeds of which were pointed out to the Prefident of the Board of CommifTioners three years ago (Printed Papers, page 30,) efFefts which by his fdence he feems to have admitted ; and in a word, it may be appre- hended that they would amount to the deftruftion of the Company's Indian trade, their Indian commercial eftablifnments, their Indian {hipping, and finally leave the China monopoly fo infulated and unfupported as to bring that alfo at length to its fall, and with it the whole fabric of the Company, and the great revenue now fo eafily realized through its medium ; nor can it be at all doubtful that in fuch cafe the China trade would alfo be loft to the Nation. It is not irrelevant to this fubjefl: to advert to a paflage in the hiftory of the Dutch Eaft India Company, under the year 1602. " The plurality of Eaft India partnerftiip or focieties at this time formed in Holland creating much diforder and clafiiing in that commerce, the States General fummoned before them the diredors of all thofe companies, and obliged them to unite for the future into one, to which united company the States granted the fole commerce to Eaft India, for iwenty-one years, from the 20th March 1602." They had in coni'equence, feve- ral chambere of Eaft India commerce in Holland, as Amfterdam, Middleburgh, *^""- vations &c. but thev wefe all under one united Diredion *. 7. 7. In the time of King William the Company were allowed five per cent, on the private trade. ,^ 8. 8. Many remarks made upon the fixth article will alfo apply to this which might have properly formed a part of it. We need thereiore only obferve here, that the permitting of fliips to fail from the out-ports will go very materially to injure the intereft of thofe who w'ere let into the Indian trade by the Ad ot 1793 ; to increafe the danger of colonization abroad, and of injury to the revenues by fmuggling at home, as well as another danger to be noticed in the next article. so. lo. It is not only to all our Indian pofleftlons that the exportation of military ftores ought always to be prohibited, but alfo to the numerous iflands in the Eaftern feas, inhabited by a vindidive race of people who may be ready not only to buy v.-arlike ftores, but to engage Europeans in their quarrels \ and the failing of (hips v/ill certainly increafe the danger of thefe evils. II. SI. The exifting laws as to piece-goods enables the Company to confine the im- portation of that article to themfelves ; they have never availed thonfelves of Obfer- • See Anderfon'i Comraerct, and Macpherlon's Annals of Commerce, under idzz. this 14- 14- nnd CHAIRMAN, &c. of The EAST INDIA COMPANY. 13 his privilege; but yet it may be proper to continue it, becaufe " the reji^ular and conftant employment of mnnufr.ftun r-; und^r the exifting fyflcm of local management," is a matter of conl'tquence not likely to be otherwife fo well guarded ; and that great importations of piece-goods would operate againft the q,,c^_ home manufaftures, whilll a fuudler feleft importation would be ufeful. "'""" v^tion.v There is a new reafou for the fame rcflric^ion in favour of the Company in the 12. 12. article of raw filk, becaufe fuch a general competition is now to be opened againlt them, and becaufe they have at great expenfe in a long courfe of years, by means of their own eflabliflimcnts, brought the raw filk of Bengal, wliich they export, to a hi'^h fhue of pprfeclion ; and ii .Iiat article is left to the compotition or individuals, who will o'ten have to refort to the agency of indolent natives, the quality of the article n)av be expefted materially to fall, and the filk manufactures of this country to be much worfe fupjjlied than they are at prefent. It is proper to add on this fubjeft, that the reftriction in favour of the Company in the article of piece-goods is by no means of the value it was at firft, the demand for that Indian ftaple being now greatly diminifhed in this country. Lord Melville has obferved, on the reafons which he apprehends had influenced the Court in propofing that fhips of lefs than four hundred tons (hould not be allowed to fail to India, that " though entitled to due confideratiou, they do not " appear to be fufficieutly flrong to juftify the propofed reftriction, or the making " a diftin<^ion, in that refpefc, between fliips trading to the Eafl Indies and to " other countries ;" it is therefore deemed necelTary to difcufs die propofuieu more at length. In examining the fubjecl of the fixth propofition, the facility which fmall fliips would afford to fmuggling were the out-ports opened for the difpofal of the homeward cargoes, has already been confidered. In further fupport ot the fourteenth propofition, refpedling the lead fize of fliips that fliould be permitted to go to India on account of individual?, the practice of the India Company in the early part of their intercourfe with the Eaft might be adduced, for they foon dropped the fmaller clafs of ihips for one of five hundred tons ; but as this country in its improved ftate of navigation and commerce has few fliips of that burthen, except thofe employed by the Eall India Company, the limiting of fhips to be now employed in the private trade to India to four hundred tons was fuppofed to afford facility to the mofl: refpectable houfes to benefit by the pro*- pofcd enlargement ot the trade. Every one will admit that there is more of refpeftabllity in the larger clafs of fliips, and this circumllance fiiould not altogether be loft fight of with the in- habitants of India. The impreihons of the fuperiorlty of our maritime ftrength to that of other nations, and particularly to the Americans, who fpeak the fame language, and who navigate very fmall velfels to and from the ports of the Eaft fliould be kept alive, and, as a rcafon of ftate, fliould have its due weight in the confideranon of this fubjeft. It is not only the refpeclabillty of thefiip that fliould be attended to, but there is alfo a degree of refpectability and refponfibility attached to the charafter of the commander and of the officers (of whom there is a greater eftablifhment in the larger fliips). Their information is pre-eminent, particularly in thofe eifential articles of nautical fcience, the variation and the lunar obfervadons in the navi- gation of the Indian feas, and to and from thence, by fuch men. A better dif- ciphne is eftabHlhed in thofe larger fliips which fuit them ; the fliips are alll> better armed, and lefs liable to capture than veffels of the fmaller clafs. The length of voyage requires not only fuperior equipment and a ftouter velfel, but in order to guard againft contingencies of every kind, fubordinate officers and their afliftants are indifpenfable^ becaufe in the event of the death of the principal officers the knowledge and fkill requifite to fupply their places, ef- pecially in cafes of emergency, could be derived from no other quarter. Small veflTels cannot have thefe neceflfary advantages j an obfervation which applies- (32.) D more 14 CORRESPONDENCE beiv:een PRESIDENT of INDIA BOARD more particularly to fuch petty oflicers, as carpenters and caulkers, in refpeft to matters that concern the hull of the lliip, and to medical men in refped: to the crew. It has been fdimd bv experience that larger fhips can be navigated at a Icfs rate per ton than fmall ones ; hence, one of four hundred tons will require lefs rate of freight than two of two hundred tons ; a point of economy in the con- veyance of goods, which is not to be difregarded even in a national view. As India is concerned, the fmaller veflels v.ili multiply a defcription of perfons in the ports, and tliroughout the country, whofe coadad may have ferious effects on the peace and quiet of the Afiatic govermnents, from the caufes before mentioned. The minor ports throughout the country will admit of an inter- courfe and conne>^tiou bct\\ccn Europeans and the Natives, which the vigilance and power of our governments cannot dil'cover nor controul. The fnips employed in private trade lliould be conilrained to navigate with a certain number of Europeans outward, fo as to prevent as much as poffible the introduction of native feamen to this country j and hence, for the fake of humanity, a furgeon becomes a neceifary perlbn, the employment of whom may well comport with the fize of Ihiprf of iour hundred tons or upwards, but not with thofe of two hundred and fiftv, or lefs. If the health and lives of feamen be thought of confequence to the Itate, the larger clafs of fhips fhould certainly be preferred. If the prefent fuperior clafs of Weft India fliipping are of four or five hundred tons, where the paflage is not more than fix weeks, it appears at leail as reafonable that thofe employed in an Eaft Indian voyage, which may lafl many months, fliould be equally competent and formidable as the running fhips, and not ftand on a fcale beneath thofe of the firft clafs upon Lloyd's books, fo that the premium of infurance upon the goods fliipped may be kept at the loweft poilible rate. Whenever fuch enlargements as may induce the fubjeiSts of this country to embark very large property in the Indian trade fhall be opened to them, it muit be highly expedient that, for fuch time at leaft as may be fufEcient for the return of one voyage, the utmofl pofTible fecurity which the Legiflature can devife fliould be provided, in order to check fuch hazardous adventures as might otherwife be carried on in any defcription of velTel, or under the conduft of characters not fufficiently refponfible, and at the riflv or coft of the underwriter. ■ If an honourable commercial intercourfe wfth India be the object, fuch whole- fome regulations will promote it ; but if fpeculations of mere chance outward, and fmuggling homeward, fliould be in the contemplation of any adventurers, proteftion to the fair trader, to the Eaft India Company, and to the revenue, can only be fecured by fome efficient law relpefting the fize of the fnips, and their confequent equipment in ftqres and force, under the conduct of able and refpon- '^'""- vations fible commanders and crews. J 6. 1 6. The regulations propofed with refpeft to Lafcars- are only intended for a time of war. No Lafcars fhould be brought to this country in a time of peace. i8, i8. The exifting regulations as to ingrefs and fettlcment of unlicenfed Europeans into the Company's eltablifhmehts and territories to be continued. No Britifh fubjefts to be allowed to fettle in any country within the Company's limits, and not under the government of the Company. 19. 19. The King's forces maintainable by the Company in India not to exceed fifteen thoufand men in all, and this number to be reduced as may be found pradicable» 20. 20, If the propofition made by the Company, to be henceforth charged fo much per regiment of a given force, or fo much per man, be not adopted, we fhall be glad to receive any fpecific propofition for putting upon a clear and equitable footing the adjuftment of accounts between the Pa)-ofIice aud the Company. By any fuch arrangement we gannot doubt that at leait the intricacies of the prefent mode of fettlement, utterly unfatisfactory as it is to the Company, will be got rid of, even if the expenfe fliould not be diminilhed ; but will it, for example, admit of any queflion, whether, when the Company have been charged, as they really have end CHAIRMAN, &c. of The EAST INDIA COMPANY. 15 have been, with the expence of an entire recruiting company at home as con- ftantlv raifing recruits ; and whilft, in many inltances, the recruits fo raifed have been fent, not to India but to other quarters, the recruiting company having alfo been at all times available for internal fervice, it can come within the equity of the 127th claufc of the Aft ot 1793, or ever could have been intended to charge the expenfe of fuch company to the Indian territories ; or is it juil, that the ex- penfe of the colonel of a regiment employed either at home or on the Continent, or perhaps on a furlough ftaft' appointment, fiiould be partly charged to the Eaft India Company, and his pay be drawn from them ? As all parties therefore agree oiftr- in the propriety of an alteration, the fooner it is made the better. '" '' *"'«"»• The Court of Directors have already objefted, and mufl ever objeft, to the 21 • 21. arbitrary mode adopted by a Committee of the Houfe of Commons in 1805, for the feltlement of the demands of the Company on Government. We think it a clear and equitable principle that the expenfe of captures made and not retained by the Company, but transferred to His Majefly, or by His Majefly reftored to the enemy, fhould be charged to the public. The ordinary pay of the Company's troops employed on fuch fervices, and efpecially in places out of the fphere of India, as in Egypt, fliould alfo be placed on account of the public. On thefe grounds we beg leave to propofe, that the balance of demands now made by the Pay Office on the Company be fet off by the funis which they are yet unpaid for, the capture of Cieylon, and the Moluccas, and for the expeditioii to Egypt. Even then the fettlement will be greatly to the advantage of the public, as the Company have made good to the Pay Office a fum exceeding two millions ; in addition to which they have fnice the year 1797 been charged for King's troops beyond the number for which the law obliged them to pay, at the average annual rate of about three thoufand firelocks, befides the officers and ferjeants requifiLp.for that number of men. As afupplement to this article, the Court cannot help again fubmitting to con- 22. 22. fideration the earneft defire and hope of the Proprietors to be exonerated out of the general funds of the Company from the payment of the property tax. The dividends of other pubhc companies are thus exempted ; and it is but a fmall con- fideration in the immenfe concerns of the Company, from which the proprietors have, on the whole, yet derived only the ordinary mterell of money in return for all the hazards their property has run. The debt of which the Court of Diredors meant to fpeak in the twenty-third 2^. 2', propofition was the whole of the Indian debt, part of which, to the amount of about feven millions, has been transferred to England. The obfervation of Lord Melville will coincide with this propofition ; and the Court of Direttors can have no material objedion to his Lordfliips provifo refpefting the I'eduQion of the bond debt at home to three millions ; but experience has fhcwn the inconvenience of contining within narrow limits, by parliamentary regulation, the amount of this debt. Confidering how probable it is that private adventurers will defire to obtain a ^r. 25. fupply of the article of tea, m order to be fmuggled into this country, and to foreign parts, and confidering alfo the importance of not endangering the com- mercial intercourie now permitted by the Chinefe to the Britiih nation through itS long-eftabliffied organ the Eaft India Company, it is obvious that effectual provilion ought to be made in fome mode or other for preventing both thefe evils ; and we fhall be glad to hear any propofitions which wer^i in Lord Melville's contemplation, or may be in your Lordlhip's, as more likely to fuit that end than the fuggeftion we have offered. In the mean time, we feel it incumbent upon us to requeft your Lordfhip's attention to fome remarks on the queftion of admitting private fliips to the Spice Iflands. The demand of all Europe for the fpices of the Moluccas is fo limited, that one or two of the Company's fhips may import a fuf- ficient quantity for the fupply of it ; the divifion, therefore, of this fupply among the Ccnipany and the merchants in general of this country, will leave fo little to the i6 CORRESPONDENCE betioccn PRESIDENT of INDIA BOARD *he individuals of the latter clafs, as to form no object worthy of long and diilant enterprizc. not to mention that fpiccs are now rifing up in other parts of the eaft, which renders thefe iflands lefs important limn they have been. The maintenance of the Molucca Iflands, which produce no valuable co. .modify but fpices, occafions to the Company a heavy cxpciife, and can only be compejifated by a monopoly of their trade ; and if private merchants are to participate in that trade, they ought alfo to hear a proportionable fhare of the charge of eftablifliment in thofe iflands. But the fpice trade is not the moft infercfting confideration belonging to this queftion. If m any of the ifiands of the Ivaltern Seas not belonging to the Com- pany, Britifii fubjefts were to fettle, (a thing which the Company, even if armed with legal powers, would find it dllTicult to prevent after th')fe leas fliould be open to all the ihips of this country), it would fecm impoffible to hinder them from obtaining, by one means or other, a fupply of the teas of China, for the purpole of being fmuggled into Europe. That objcft alone might be tempting enough to induce a fettlement, where no other circumltancc was fufiiciently inviting ; and if from this motive, or a concurrence of others, which might be fuppofed, a num- ber of Engliflrmen were once to unite themfeives in that quarter, whither nev/ individuals might continually refort, and whence again they might repair to all the ports of the Indian continent, it would fecm fcarcely prafticable to preferve the efiiciency of regulations formed either here or by the Indian governments, for the exclufion of unlicenfed perfons from their territories. Such would be the danger efpecially of any Britifn fettlement in the Eaftern Archipelago not fubjefted to the governinent of the Company, a danger very ferioufly to be deprecated ; and even in thofe held by them, as the Moluccas, if they were open to all Britiih fhips, it may well dePerve confideration, whether there might not be fwine liability to danger of I'he fame kind. On all thefe grounds it really feems advifable that Britifti fhips from Europe fhould not have accefs to the Spice Ifiands. HAVING concluded our remarks upon the " Propofitions" and " Obfervations'' hitherto brought under difcuffion, we next beg leave to fuggeft fome other regu- lations growing out of the general fubjed now under confideration, and of our pafl correfpondence. Thefe, we truft, will be found fo obvioufly proper and neceflary as to require no enforcing argument. 26th Propofition : — That no fhip fliall go from any Britiih colony to the Eafl Indies or China without the fpecial licence of the Company. 27th Propofition : — Private fliips going from the United Kingdom to India, to fail direft from that kingdom thither, and from India to that kingdom, without purfuing any circuitous route. a 8th Propofition : — Ships going from this kingdom to India not to engage in the coaiting-trade of India, but to be permitted to go from one port of delivery of the original cargo to another, for the full difcharge of it. We have the honour to be, my Lord, Your Lordfhip's moft obedient humble Servants, (Signed) Hugh Ingus, Charles Grant, RouERT Thornton, Edward Parry, The Right Honourable Jacob Bosanqukt, William Astell, the Earl of Buckinghamfhire, W.F. ELrniNSTONE, George Smith. &c. &c. &c. AT aiid CHAIRMAN, &c. of The EAST INDIA COMPANY. 17 AT a Secret Committee of Correfpondence, the 17th April 1812. THE Committee took into confideration the flate of the negotiation for the renewal of the Company's exclufive privileges, and deliberated maturely upon the feveral points connected therewith. At a Secret Committee of Correfpondence, the acth April 1812. The Chairman .laid before the Committee minutes of a converfation held yefterday evening, between the Prefident of tiie Board of Commiflioners and himfelf. k was unanimoufly agreed, that the fame be fubmitted to the Court of Direc- tors to-day, together with a minute thereon, now read and unanimoufly approved, being as follows ; viz. Lord BuckinghamOiire dated, that it had been determined to preferve the mo- nopoly of the tea trade to the Company, but to permit the private traders to fill up and aifort their cargoes with nankeens and other articles, the produce of China,, which they would procure in India. His Lordfliip then ftated, that it was the determination of His Majefhy's Mi- nifters to recommend to Parliament, to permit private fhips to clear out from any port of the United Kingdom, but that they fliould only be permitted to import into thofe places where the warehoufing fyftem exifted. Sir Hugh IngHs ftated it as his opinion, that the Court of Directors in the firfl: inllance, and the Court of Proprietors, when laid before them, would refill by every means in their power a meafure fo fatal to the vital interefts of the Company and to the public revenue, as would be the meafure of allowing the (hips of individuals to import into any place but the Port of London ; and that fituated as he was, he ihould confider it his duty to refill:, and recommend to the Court of Direftors, and ulti- mately the Proprietors, to refill the propofition. AT a Secret Court of Dire£lors, held on Monday the 20th of April 1812: TFIE Chah-man from the Committee of Correfpondence, laying before the Court minutes of a converfation between the Prefident of the Board of Commif- lioners and himfelf, held yeflerday evening ; — The Court after deliberating thereupon, agreed unanimoufly to the following minute ; viz. The Chairman having in a fecret Court of Directors, communicated the minute of a converfation which he held laft night with the Prefident of the Board of Commiliioners, the Court learn from thence with very great concern, that it feems to be the prefent difpofition of His Majefly's Minifters to extend to the merchants of this country the privilege of importing goods from India into all the out-ports of the United Kingdom to which the warehoufing aft extends, which ports are in number : — The Court have from the beginning of the negotiation declared their firm conviftion, that if the import trade from India were not confined to the port of London, the fyftem of the Company's public fales, their trade to and from China, the dividend, depending chiefly on that trade, and the political funflions which, aided by thofe privi- leges, they exercife for the benefit of the nation in the government of the Indian empire, would be deflroyed, as well as the revenue of this country (by the ex- tenfive practice of Imuggling, which would inevitably follow the propofed altera- tion) be effentially injured. The Court having never before received from His Majelly's Minifters any intimation that they differed with the Court upon this point — having Rated their opinion, with the realbns for it, to their conftituents and the public, — having feen no argument advanced in oppofition to it, — >and remaining flill perfuadcd of its truth, they feel it impofhble, as men of integrity, invefted with public trull and refponfibility, to recommend to their conftituents to abandon the propofition for reftrifting the import trade to London;, and would moft earneltly requeft His Majeity's Minillers to re-confider the com- (32.) t municatioiv. i8 CORRESPONDENCE ^^/w^^«- PRESIDENT 0/ INDIA BOARD inunication made to the Chairman by the Earl of Buckinghamfliirc, and to give the Chairs, or a deputation of the Court, an opportunity of waiting on them, before any final refolution. adverfe to the Company is adopted on this very im- portant head. AT a Secret Committee of Correfpondence, the 24th April 1812. THE Committee deliberated on the feveral points at iffue in the prefent nego- tiation with His Majefty's Miniflers. AT a Meeting of the Deputation, the 28th April 1812. READ and confidered, a Letter from the Right Honourable the Prefident of the Board of CommilTioners for the Affairs of India, dated the 27th inftant. AT a Secret Committee of Correfpondence, the 28th April 181 2. THE Chairman laid before the Committee a Minute of a Conference held on Saturday laft, which was read and approved ; and the Chairman was defired to lay the fame before the Court. Mem. — This Minute is contained in the fucceeding Minutes of the Court, No. 54. AT a Secret Court of Diredlors held on Tuefday, the 28th April 1812. THE Chairman froin the Committee of Correfpondence reports to the Courtj that in confequence of the requefl contained in the Minute of the 20th April, which was communicated to Lord Buckinghamlhire, the Chancellor of the Exchequer and his Lordfliip favoured the deputation with an interview on Satur- day the 25th inftant, at which Mr. A^allace was alfo prefent. At that meeting various points belonging to the prefent negotiation were touched upon, but the difcuffion majnly turned on the important queftion of per- mitting the Clips of private merchants generally to import goods from India at the out-ports of the United Kingdom. The deputation urged every thing which occurred to them in fupport of the propofition of the Court upon this fubjecl:, as involving the eflential interefts of the Company ; but they found with regret, that the impreflions which His Majefty's Government had received refpeding it, fmce the date of Lord Melville's letter of the 2ift March, were not in confonance with the fentiments of the Court of Directors. The Chancellor of the Exchequer, however, and Lord Buckinghamlhire, esprelled their intention of communicating in writing the judgment they had formed on the fubjefl; in queftion, and Lord Buckinghamftiire having accordingly addrell'ed a letter to the Chairman, and Deputy Chairman, dated the 27th inftant, that letter is now laid before the Court. Gentlemen, India Board, April 27th 1812. IN communicating to you the fentiments of His Majefty's Government, after a full confideration of the feveral points which have been brought under their view, in confequence of the conferences and explanations I have had with you and the deputation, fmce I had the honour of receiving your note of the 3d inftant, it is unneceflary for ine to enter upon the difcuffion of the hints and ob- fervations which Iiave been the fubjedl of the correfpondence between the late Prefident of the Board of Control and yourfelves, as far as thofe hints and obfervatlons have been fanftioued by the general Court. It was to have been expeded that upon a queftion involving the various inte- refts of fo large a body as the merchants and manufaclurers of the United King- dom, as v.-ell as of the Eaft India Company, that confiderable differences of opinion fliould arife, and that reafons fliould be alleged of fufficient weight to fuggeft the propriety of revifmg any plan which might originally have been coii- certedi Under mid CHAIRMAN, &c. p/ The EAST INDIA COMPANY. 19 Under fuch an impreffion, Lord Melville, in his letter of the 2 ifl: ultimo, defireJ it to be diftinftly underftood, that public difcuflion in the further progrefs of the meafure might poffibly produce an alti'ration in fume of tlic details, as well as regulations, of a diflerent defcription ironi thofe which were then fuggeded. You would therefore not have been wholly unprepared for the communication made by me to the Chairman at a perfonal interview, where he was informed that the reprcfentations which had been brought before His Majefty's Government, fince the publication of the Correfpondence already referred to, had led them to entertain an opinion, that they would belt confult the public intereft by not con- fining the import trade from the Eaft Indies to the port of London. The arguments adduced by you and the other members of the Deputation, and which had been urged with much ability, and at confiderable length, in your letter of the 1 5th inflant, have received the moft ferious attention of His Majefly's Government ; but I have to acquaint you, that although they think that the great intereft of policy and of revenue, as well as of tlie Eaft India Company, will ren- der it their duty to propofe to Parliament that the exifting reftraints refpefting the commercial intercourfe with China fliould continue, and that the exclufive trade in tea fhould be preferved to the Company for whatever term the charter may be renewed, yet that they remain of opinion, that the import trade from the Eaft Indies fhould not be confined to the port of London. They are not, however, infenfible to the danger and mifchief which the revenue, as well as the Eaft India Company, might fuffer, if under the cover of that trade an illicit commerce of tea were to be fuccefsfully carried on ; but they conceive, that regulations both in India and at home may be fo framed as to guard againft that danger, and to protect the Company and the revenue, whofe interefts in this refpeO: equally require fuch protection from the eftefts of it. In fubmitting therefore the propofitions to Parliament in this fhape, the Government are perfuaded, that whilft they would be fupporting interefts juftly entitled to public confideration, they would at the fame time be purfuing a courfe eflential to the colleftion of a revenue of nearly four millions fterling, without breaking in upon that fyftem under which the falutary provifions of the Commutation Act fecui-e the people of the United Kingdom againft any failure in the regular ajid conftaut fupply of an article which has become a neceflary of life. In confidering the terms propofed for the renewal of the charter, as they would ftand, ftould the fuggeftions I have conveyed to you in this letter be adopted, you will be fenfible of the high importance of bringing to a conclufion an arrange- ment, in which the interefts of the Company and the nation at large are fo deeply implicated, with as httle delay as may be deemed compatible with a mature con- fideration and fatisfaftorv adjuftment of the feveral claims and pretenfions of the parties concerned. I have the honour to be. Gentlemen, Your moft obedient humble Servant, To the Chairman and Deputy Chairman (Signed ) Buckinghamjhire. of the Court of Diredors. AT a Secret Committee of Correfpondence, the 29th April 18 12. READ a letter from the Right honourable the Prefident of the Board of Com- miffioners, dated the 27 th inftant. Read alfo, and approved, draught of letter to the Prefident of the Board of Com- mifTioners, in reply. AT a Secret Court of Diredors, held on Wednefday the 29th April 1812. THE letter from the Right honourable the Prefident of the Board of Commif- fioners, dated the 27th, and read in Court the 28th inftant, was again read. 10 The 20 CORRESPONDENCE bcttoecn PRESIDENT of INDIA BOARD The Chairman from the Committee of Correfpondence laid before the Court, draught of a propofed letter in reply thereto , — And the fame was read, and unanlniouily approved. My Lord, Eaft India Houfe, 29th April 1812. THE letter which the Chairman and Deputy Chairman had tlie honour of receiving from your Lordfhip on the 27th inflant, was the day following laid before the Court of Direfiors, and engaged their moil fcrious attention ; it has again been confidered by them this day ; and we have now to fubmit to your Lordlhip the anfwer which they have inftrufted us to make to it ; an anfwer, which, from having before v/ell reflected on the principal fubject of your Lordfhip's letter, delivers their mature opinion ; and, as they prefume to hope, in the leafl time poflible, being fenfible, with your Lordfhip, that in the prefent critical period of the negotiation all unneceflary delay is to be avoided. It IS with extreme concern the Court find, that fmce the publication of the correfpondence between the Prefident of the Board of Commiflioners and the Court of Direftors, on the momentous queftion of the renewal of the Company's charter, His Majefty's Minifters have been led by the reprefentations which have been made to them, " to entertain an opinion that they would befl confult the " public intereft by not confining the import trade from the Eafl Indies to the " port of London," and that they ftill hold this opinion. Not having been made acquainted with the particulars of thofe reprefentations,. and having urged various arguments which remain unanfwered, againft the meafure of" opening the out-ports to the trade from India, the Court under the difadvantages of fuch a fituation are imperioufly called to the confideration of the circumllances in which the Company are now placed, and in which, according to the beft judgment they can form, the Company would be placed, if the new charter fhould open the out-ports of the United Kingdom to the returns of the Indian trade. Whatever may be thought, my Lord, by the merchants of this country, of their right to enter into the poifefTion of a trade acquired and maintained through long ftruggles and viciffitudes, at immenfe expenfe, by the Eaft India Company ;• a trade ftill intimately connefted with the f'ecurity of the vafl empire which the fame Company have gained, and adminifter for the benefit of the nation at large j. the Court of Directors are of opinion, that the facrifices they agreed to make of that trade to the public feeling, or, if they may be permitted to exprefs their ideas more accurately, the public prejudice, were very large ; and they yielded to them, undoubtedly, under a firm belief, not at that time difcouraged by Hi^ Majefty's Minifters, that the importations from India would be confined to London, as well as that the exclufive privilege of the China trade would be carefully fecured to the Company. But the conceflions frankly made by the Court of Directors and Proprietors, who regard themfelves aKvays as a part of the public, and wiih as much as poffible to be lin unifon with it, have, it appears, only encouraged further demands ; and if the tide of prejudice, of popular clamour, of moft extravagant expectation, and unbounded pretenflon, which have been more induf- trioufly than fairly excited, were now to determine the public Councils, not a veftige would remain of that great fabric which has been reared in the courfe of two centuries, uniting v.ith commerce an imperial dominion, which would be fhaken to its foundation by the deftruftion of that fyitem which ha.-> acquired and prefer ved it. It is no furprife, my Lord, to the Court, though it is undoubtedly a great confolation, that His Majefty's Minifters unite with the " great interefts of policy, " and of revenue," thofe of the Eaft India Company ; and that it muft hence be their objeft to continue the political functions of tlie Company, and the means^ which are necefiarv for the maintenance of thofe fundions. On this bafis the Court are happy to have the honour of meeting His Majefty's Minifters, and to continue the prefent difcufTion. It is perfe6l:iy known, that for a feries of years paft, fmce the Indian territory has been loaded with an immenfe political debt, the Company have derived no- furplus end CHAIRMAN, &c. of The EAST INDIA COMPANY. 2 1 furplus from the revenues ; they have carried on the currency of tlieir home affairs, they have even aided the political concerns of India ; and above all, they have made good the dividends to the proprietors from the profits on their commerce ; and of late years thefe profits have been derived chielly from the China trade. From the flill exillina; territorial debts of tlie Company, and the fcale of their Indian expenditure, after all endeavours to reduce it, the Court of Direc- tors have no profpeft of pecuniary acquiiitions, except through the fame medium of commerce, for many years to come ; and, as already intimated, it is the com- mercial profits of the Company which enable them to difcharge the political fundions afligned to them in the management of the Indian empire. Without this refource, or fome equivalent one not within their power, the dividends could not be continued, the value of the llock would diminilh, and the Company be brought to a Hate of diffolution. ■^Cl It is the extinftion or material diminution of the commercial profits, arifing chiefly, as we have faid, from the China trade, that we apprehend from the opening of the out-ports to the returns of the Indian commerce. If this extinc- tion or diminution were to take place, your Lordfliip will doubtlefs agree with the Court in admitting, that the fatal confequences they contemplate would follow ; and that after going on a few years on the new plan, the Company would be fo impaired in its refources, as to be inadequate to the important part allotted to it in the fyftem of Indian adminiftration. When the Court of Directors thus view the confequences of opening the out- ports, His Majelty's Minillers will not blame the anxiety with which they re- fpecttully contend againft that meafure. The duty they owe to their conftituents, to their own charafters, and to the public, requires them in fuch a cafe to aft with the greateft circumfpeclion, in order to obtain a reafonable affurance that the terms of the new Charter will be fuel) as will enable the Comp:my to go on efficiently in the performance of the political fundions it has hitherto dif- charged. We do not apprehend, my Lord, that there is any difference in principle oa thefe points between His Majefty's Minifters and the Court of Diredors j the main difference in refpecl to the queflion of opening the out-ports is, as to the practical effects of that meafure. It appeared in the conference we had the honour of holding with the Chancellor of the Exchequer and your Lordfliip, to be his opinion that checks could be devifed to prevent an indefinite extent of fmuggling Tea, ruinous to the Company, which we fear from opening the out- ports to the Indian trade ; we have already given many reafons for thinking that the practice of fmuggling would, in fuch cafe, be uncontrollable. Thofe- reafons, which need not to be repeated here, we believe it will be difficult for the parties molt adverfe to the Company to refute ; but the fubjecl being fo im- portant in the prefent dilcuffion, we beg leave to add a few more obfervations on it. It is a fact notorious, tliat tea has been fmuggled by the way of India into this country, even when the duty was comparatively finall, when the Indian import trade was confined to eight or ten Company's fhips, and to the river- Thames. How much more, then, is fmuggling beyond all bounds to be ex- pefted when the fhips fhall be unlimited in number and fize, and may refort to the out-ports of England, Scotland, and Ireland ? This pracHce would be much facilitated, becaufe in the numerous Eaftern iflands not fubject to any European powers, where we have faid tea might be brought for Englifh fhips rom China, there is no uiage of clearing out veffels, or giving them papers or manifefts. It would thence be eafy for them to break bulk in the paffage home, and as they approached the coaits of Britain and Ireland, to put tea, as well as other articles chargeable with duty, on board of Ihips and cutters deftined either for the ports of the continent, or the remote coafts of Scotland and Ireland, on which for an hundred miles together, every where acceflible from the fea, there is fcarcely a cuftom-houfe, and where cuftom-houfes could not be fufficiently multiplied. Veffels of very fmall fize being allowed in the Indian trade, they could enter into ports and bays little frequented, and run (32.) E goods. 22 CORRESPONDENCE hcttueen PRESIDENT of INDIA BOARD goods to be carried inland, and there difperfed. In feme of theNorthern and Weflern ports of the United Kingdom we have heard that collufive praftices between the revenue officers and the fmugglers are not unufual ; if this is the cafe in refpeil to articles which pay a comparatively fmall duty, what would it be where the articles of tea and Indian goods were in quellion ? Ships might flop at intermediate ports for orders, and there fmuggle, as thofe bound to the Weftern coail, at Cork and Falmouth ; thofe to the Eaftern coaft, at Falmouth and the Downs ; thofe goinjr North-about on the Irifh and Scotch coails. Ships having feveral ports of difcharge would thereby obtain facilities in fmug- gling, and the Itate of rehtions between this country and parts of Northern Europe may be fuch as to afford the means of running goods into thofe parts which from their proximity may again be able to fmuggle the goods into our remote ports. In a word, we are led to appreheiul that the means and tempta- tion of fmuggling tea, when an unlimited trade is permitted to India and the Eaftern iflands, mull be in a very great degree uncontrollable by any checks which His Majefty'^s Government can in fuch circumltances interpofe ; nor is it to be overlooked, that a cluls of Indian goods, flyled in the revenue language, fro}ytbited, becaufe excluded altogether as interfering with the manufadures of this country, will by all the openings which the new trade will produce, be every where unavoiclably brought into ufe. It is true, that even if the return of India were confined to the channel, as we propofe, fmuggling might be expeded, but certainly not in our opinion at all to the fame extent ; and had we conceived otherwife, the fame objeftion we now advance againft opening the out-ports, would have been urged againft that enlargement of trade in which, the Court have acqtnefced, and for the fame reafon, to prevent the ruin of the Company, which, did His Majefty's Minifters apprehend, they would doubtlefs in either cafe have a defire to prevent, even by retufmg the required conceflions to the Britifli merchants. With thefe views, my Lord, deeply impreffed on the minds of the Direftors, acting as they are in a molt refponfible iituation, is it too much for them to ex- peft and to requeit, that they may be honoured with the knowledge of thofe means which His IMajelty's Government may think would be effectual to prevent the practice of fmuggling, under the new circumftances, to any ruinous or great extent ? Could they have a rcafonable perfuafion of the pradicability of fuch prevention, that would undoubtedly fo far leifen their fears, and the arguments on which they now feel it their duty to infift. They hope not to be mifunderftood in this propolition, Alfured both of the defire of His Majefly's Minifters, as well on account of the Company as of the revenue, to prevent fmuggling, and of their belief of the prafticability of doing fo ; feeling alfo, as the Court do, the delicacy of fceming to interfere in any of the revenue regulations of Government, they are yet fo circumftanced in the prefent critical conjuncture as to find this inquiry mofl interefting to the caufe of the Company. It is^ indeed true that the Public appear to have a greater concern at flake here than the Companv. The Public may lofe the greater part of a revenue of four millions per annum, whilfl the Company can have only to the extent of one million at hazard. But then this one million is all the Company's certain income; if they lofe that, they lofe the foundation on which their efficiency reffs, unleis in the new arrangements fome other rcfource fliould be provided which fliould fecure the dividend to the proprietors, a provifion which undoubtedly would alio ma- terially affect the views the Court of Diredors now entertain from contemplating the dangers of the Company's China trade. And fuller us, my Lord, lince the atfailants of the Company's privileges are fo loud in reprefenting their intereib as thofe of the nation at large, to add this remark concerning the nadonal in- tereft in the prefent quefHou, that if the revenue of nearly four millions, now fo eafily collected from tea, fliould fail, or fail to the extent of only two millions, other taxes muft he laid upon the public to compeniate for that lofs ; and whether the nation will gain fo much crtherwife by the propofed enlargements of trade, may be a ferious queflion with thofe who have to decide on this momentous concern J with us it is none. It may deferve alfo to be recoUetted, that with the and CHAIRMAN, &c. of The EAST INDIA COMPANY. 23 the fall of the Company's China trade will fall the exports of woollens and metals to the extent of a million annually, by which the profperity of the counties of Cornwall, Devon, Somerfet, Dorfet, and Gloucefler, and Norfolk in fi)nie mea- fure, have been upheld during the arduous flruggle of eighteen years in which the country has been engaged ; the excellent fleet of fliips employed by the Company, with all the long details of interefl conncfted with them, mufl decay, whillt the nation will lofe that certain and regular fupply furniflicd by the Company of the article of tea, an article, as your Lordfliip juftly obferves, now- become a neccflary of life. Before we difmifsthis topic, may we be allowed to bring under your Lordfhip's infpeftion a fuccind view of the capital and interefts concerned in the Indian and China trade from the port of London. There are about fourteen hundred commanders and officers belonging to the fhips of the Ea(l India Company, befides the feamen, who may be about eight thoufand ; the tradefmen engaged in the fupply of the Company's (hipping In the river Thames are about twelve thoufand, and the labourers employed in their warehoufes are about three thoufand ; all thefe, with their families and depend- ants, making an aggregate of upwards; of thirty thoufand perfons, would, by the removal of the Indian trade from the port of London, be generally reduced to great diftrefs, and many of them become burthenfome to their parifhes. The capital now employed in the Indian trade may be moderately computed as follows : The Company's Capital Stock of ^6,000,000. at the price at which many Proprietors purchafed, will amount to - • af 10,800,000 Capital in Warehoufes - - . _ . 1,000,000 Capital in Ships - . . _ . ^ 3,800,000 Capital in Docks . _ . . . 400,000 Capital of individuals in the Metropolis may be moderately eftimated at - - . _ . . 5,000,000 .5^21,000,000 The trade in which this large capital is employed produces, as we have had occafion repeatedly to obferve, an annual revenue to Government of more than four millions fterling ; and the net faving to Government from the prefcnt mode of colleding the duties may, we conceive, be fairly eftimated at .^i 50,009. per annum. By means of direft and indireft taxation, the capital itfelf and the profits upon it, yield a further lum of large amount to Government ; but the produ<5tive- nefs of the capital in this refpect depends wholly upon the folidity of the bafis on which it refts. Thefe, my Lord, are the fentlments and obfervations which we are directed to communicate to your Lordfhip. The refleiflion upon them has, we truft, been mature, though the expreffion of them, In the fliort time allowed for the prepa- ration of this letter, may require indulgence. But we are further fpeciaily direfted to add, that this is a concern of too great moment for the Court to truft to its own judgment, or to aft on Its own refponfibllity ; the Directors have therefore fummoncd a general Court of Proprietors to meet on Friday next, when the cor- refpondence with your Lordftiip, Including this letter, will be laid before them for their confidcration. We have the honour to be, My Lord, •v" Your Lordfhip's moft obedient humble fervants, (Signed) Hugh Inglis, Edward Parry, Robert Thorntox, Charles Grant, The Right Honourable Jacob Bosaxuuet, George Smith, the Earl of Buckinghamfliire, W. F. Eli'Hinstone, Wm, Astell. &c. ^*^c. &c. AT 34 CORRESPONDENCE between PRESIDENT c/ INDIA BOARD AT a General Court of the United Company of Merchants of England, trading to the Eafl Indies, held on Tuefday the 5th May 1812: MINUTES of the laft Court of the ift inflant were read. The Chairman acquainted the Court, that it is met by adjournment for the purpofe of taking into further confideration the papers which were laid by the Court of Directors before the General Court on the ift inftant : And the Court having confidered the fame accordingly, It was, on a motion, Refolved unanimouily. That this C.ourt has learnt with deep concern and fur- prize,that His Majeily's Minifters have been induced to change the view they firft entertained of the propriety of contining to the Port of London the returns of the trade to India now to be permitted to all Britifli fubjecls. That the meafure of opening the out-ports to veiTels of all defcriptions from India, comprehending in that term the Eailern lilands, appears to this Court to be fraught with conl'e- quences ruinous to the Company, and all the long train of interedis connected with it, by removing from the Port of London the greater part of the Indian trade which it has hitherto enjoyed — by rendering ufelefs many of the expenfive eftabliihments formed there for the merchandize and fliipping of that trade, and throwing out of bread many thoufands of perfons who now derive conftant em- ployment from it — by deranging the practice, and frulf rating the end of Ifated public fales, which are ufeful and Important, both to the country and the Com- pany, who arc neceilarily reftrifced to this practice ; but above ail, by affording facilities for the fmuggiing of teas into the ports and harbours of England, Scot- land, and Ireland, to an extent unlimited, and, as this Court apprehend, uncon- trollable. That the coufequence of this muft be the.deftruftion of the Company's China trade, their beil fource of commercial p.roht — the faihu-e of their dividend — the depreciation of theii" flock ; and, unlefs a fund is provided from fome other fource for the payment of the dividend, inability on their part to condnue to per- form the funftions alTigned to them in the government of Britifli India : That if the conftitution by which the Indian Empire is now adminiflered Ihould thus be fubverted, the excellent i'yftem of civil and military fervice formed under the Company, and maintainable only by fuch a body, will be broken down j the tranquillity and happinefs of the vaft population which that empire contains ; the interells of this country in Afia, ?jid its conftitution at home, will be imminently endangered. That the profeiTed objeft for which thepropofed changes are to be made, and fuch innnenfe flicrifices hazarded, namely, the increafe of the commerce of this kingdom, cannot be in any great degree attained, there being no prafticability of extending, materially, the uie of our manufaftures among the Indian people; the tonnage allotted by the Company, or afforded by Indian fliips in the management of intlividuals, for fuch exports, not having been fully occupied. Neither does it appear prafticable largely to augment the importation of profitable commodities from thence, of all which the example of the American trade to the Eaft is a proof. Britifh maimfactures which they could eafily have procured, making no part of it, nor their returns exhibiting any new articles ol importance. That therefore the trade novv' enjoyed by the Company, and individuals, will be the only certain trade to which new adventurers can have recourfe. And this will be no addition to tlie commerce of the country, but only a transfer from one fet of hands to another ; lb that old eltablifhments will be fubverted without fubftituting any thing equally good in their place, and to all appearance with great detriment to the Nation, particularly in the defalcation of a large part of the duties now coUedted on tea to the amount of four millions fterling per annum ; for all which defalcation, whether one, or two, or three millions, new taxes mult be laid on the people. That the caufe of the Company has been deeply injured by prejudice, ignorance, erroneous affumptions, and of late by extenfive combinations, and by unfair roprefentation,. and CHAIRMAN, &c. of The EAST INDIA COMPANY. 25 reprefentation, canvafs, and intimidation, in all which the merits and rit^hts of the Company, the political intcrefts of Britifla India, and of this country as con- nected with them, have been left out of fight ; and the fingle object of the exten- fion of commerce, an objed too only of fpeculation in oppofition to pad expe- rience, is the governuig principle. This Court, however, confidently hope that Parliament will not decide the fate of the Company on the reprefentations and demands of private intereds, but on juft and comprehenfive views of national policy ; and the Court muil alfu believe that His Majefty's Miniflers are too enlightened and equitable finally to adopt any meafnre calculated to deftroy the commercial profits of the Company, and thereby to difable them from performing their political fundions ; this Court, therefore, entirely approving both of the firmnefs which their Directors have {hewn in main- taining the interefts of the Company, and of the manner in which they have in t!ie papers now produced by them defended thofe interefts, doth recommend it to ihem to perfevere in the negotiation with His Majeity's Miniftcrs upon the fame principles, affured of the determination of this Court to fupport them to the utmoft in maintaining the permanence of the Company, and the national interefts which are involved in their ftability. Refolved unanimoufly. That the thanks of this Court be given to Randic Jack- fon, Efq. for his very luminous and excellent fpeech this day ; for the great zeal, ability, and induftry, he has on various occafions, and particularly on this, dif- played for the honour and advantage of this Company. Refolved unanimoufly, That the warmeft thanks of this General Court be offered to the Chairman, Deputy Chairman, and Court of Directors of this Com- pany, for their very able conduit in the negotiation with Government for the renewal of the Charter, ahke evincing the molt luminous ideas of the bed interefts of this Company, and their mod honourable condud in the management of fo important a concern. The Court then on the Ouedion adjourned. AT a Secret Committee of Correfpondence the 27th November 1812. THE Chairman reponed to the Committee, that he and the Deputy Chairmart had this morning a conference with the Prefident of the Board of Commiflioners, on the fubjed of the renewal of the Company's Charter ; at which his Lordfliip; declared it to be the intention of His Majedy's Miniders not to abandon the pro. pofition they had made for allowing adired trade between India and the out-ports of the United Kingdom ; but that the propofition might be modified, by confining the ports to which fhips fiiall be allowed to import goods from India, to a number lefs than that to which the Warehoufing Ad now extends. Lord Buckingham- fhire, however, was defirous, before refuming the correfpondence relating to it, that the Comnnttee of Correfpondence Ihould hold a conference with Lord Liver- pool and himfelf upon the fubjed. The Chairman further dated, that in reply to Lord Buckinghamdiire the Deputy Chairmain and himfelf declined making any obfervation at prefent, but dated their intention to communicate the fubdance of his Lorddiip's remarks to the Committee of Correfpondence ; and alfo exprefled their wi(h, that the Committee might have the honour of waiting upon his Lordfliip, previouHy to the propofed conference with Lord Liverpool, to which Lord Buckinghamdiire confented. The Committee in confequence refolved to ademble at eleven o'clock on Tuefday next, for the purpofe of deliberating upon the fubjed of the above communication, previoufly to waiting upon Lord Buckinghamlhire at the hour of two on that day. My Lord, Ead India Houfe, 28th November 1812. WE have the honour to acquaint your Lordlhip that we have communicated to a Secret Committee of Correfpomience the fubdance of the converfation which we had yederday the honour of holding with your Lordfliip, INIr. Wallace and (32.) G Mr. ib CORRESPONDENCE I'efween PRESIDENT ef INDIA BOARD- Mr. Sullivan, and in which it was notified to us, that the opinion of Hi& Majefty's Government remains unaltered regarding the expediency of not confining the import trade from the Eaft Indies to the port of London. The Committee received this communication with the deepefl: concern and regret ; its members unanimoufly concurring with us in opinion, that fliould the propofed extenfion of the trade, even to a fmall number of the out-porta of the kingdom, be fanftioned by the Legiflature, the meafure will be highly preju- dicial to the public revenue, injurious to the Eail India Company, and; detri- mental to the profperity of the merchants, manufafturers, traders, and other numerous bodies intereited in the commerce with India, as now carried on through the channel of the river Thames. The Committee being flill defirous-of an opportunity of renewing their reprefentations to your Lordfliip upon this important queftion, before any communication is made to the Court on the fub- jeft, have direcled. us to requefl the honour of a conference with your Lordfhip for that purpofe. Should it be perfeftly convenient to your Lordfliip to receive the Deputation on Tuefday next at two o'clock, we Ihall be able to lay the refult of the conference before the Court on the following day. We have the honour to be, my Lord, The Right honourable Your Lordfliip's moft obedient the Earl of Buckinghamfhire, humble fervants,. &c. &c. &c. (Signed) Hugh Inglis. Robert Thornton. Sir, India Board, 28th November 18 12. I HAD the honour of receiving your letter of this day, propofing that the Secret Committee of Correfpondence fliould wait upon me at this Board on Tuef- day next. I fliall be happy to have the honour of feeing them ; but as I am defirous that Lord Liverpool, and other members of the Board, fhould be prefent at the in- terview, and as I find that twelve o'clock will be more convenient to them than two, you will, I hope, have no objedion to make the appointment for the former hour. I have the honour to be. Your mofl obedient and faithful humble fervant, Sir Hugh Ing'lis, Bart. (Signed) Buckinghamjhire. kc. Sec. &c. AT a Secret Court of DIreftors held on Wednefday the 2d December l8l2. THE Chairman acquainted the Court, that a meeting took place yellerday at the Board, between feveral of His Majefty's Minifters and the Committee of Correfpondence, upon the fubjecl of the renewal of the Company's exclufive privileges, when it was agreed that no minutes fhould be then taken, in order to afibrd the moft unreferved mode of carrying on the difcuilion, at the conclu- fion of which it was underftood, that His Majefty's Minifters would communi- cate in writing their fentiments upon the whole of the fubjeft. AT a Secret Court of Diredors held on Tuefday the 15th Decem- ber 181 2. MINUTES of the 2d inftant were read and approved. The Chairman ftated, that two conferences between His Majefty's Minifters and the Committee of Correfpondence had taken place fince the 2d inftant, viz. on the 5th and 12th inftant, but that he had nothing further to communicate, to the Court in confequence. AT end- CHAIRMAN, &c. of The EAST INDIA COMPANY. 27 AT a Secret Court of Diredors held on Wcdnefday the 16th Decem- ber I Si 2. THE Court adverting to the ftatcment which the Chairman had, with their approbation, made to the General C'ourt to-day as to the late conferences with His Majefty's Minifters, upon the fubjeft of renewing the Company's exclufive privileges ; and this Court deeming it a proper mark of refpeft to His Majeily's Minifters that they ihould bo apprifed of the fome as early as poflible : The Chairman and Deputy Chairman were requefted to wait on the Prefident of the Board of Commiflioners for the Aifairs of India to-morrow, to communi- cate to his Lordfhip what had paffed in the General Court this day, and to ftate to his Lordfliip, that the Court of Direftors continue decidedly to entertain the opinion which they have formerly exprefled to His Majefty's Minifters as to the ruinous confequences of admitting the imports from India to the out-ports of this kingdom ' o AT a Secret Court of Direftors held on Friday the i8th December l8l2. THE Court having refolved itfelf into a Committee of the whole Court, And being refumed, the following report from the Committee of the whole Court was read : " The Committee taking into confideration the prefent ftate of the negotia- " tion with His Majefty's Minifters for the renewal of the Company's exclufive " privileges, deem it to be highly important that the fentiments of the Court of ** Diredors, upon the propofition brought forward for admitting the imports ** from India to the out-ports of this kingdom, fliould be unequivocally known " The Committee therefore recommend to the Court to pafs a refolution' " ftating, that the propofition in queftion is, for various reafons already fet forth " in the Court's writings, pregnant with ruin to the affairs of the Company, " inafmuch as it would render them incapable of performing the functions allotted *' to them, as well in their commercial as in their political capacity ; and that the *' Court cannot, therefore, confiftently with their duty to their conftituents, re- " commend to them the adoption of fuch a propofition." And it was, on the queftion, Refolved unaniinouily, That this Court approve the faid report. And the Chairman and Deputy Chairman were requefted to wait on the Ri"-ht Honourable the Prefident of the Board of Commiftioners for the Affairs of India, and to communicate to his Lordftiip the above proceedings of this day. AT a Secret Court of Direftors held on Tuefday the 22d December 1812. THE Chairman acquainted the Court, that in obedience to their refolution of the 18th inftant the Deputy and himfelf, on Saturday laft, waited on the Right Honourable the Prefident of the Board of Commiffioners for the Affairs of .India, with a copy of the minutes of the Secret Court of the 18th inftant. AT a Secret Committee of Correfpondence the aSth December 1812. Read a letter from the Right Honourable the Prefident of the Board of Commiffioners for the Affairs of India to the Chairman and Deputy Chairman, dated the 34th inftant ; and Paragraphs propofed to form part of the draught of a Letter to his Lordfhip, in reply. AT ^8 CORRESPONDENCE bet%ueen PRESIDENT of INDIA BOARD AT a Secret Court of Directors held on Monday the 28th Decerabei 1812. MINUTES of the 15th, i6th, 18th, and 2 2d inflant, were read and approved. Read a letter from the Ri^ht Honourable the Prefident of the Board of ConimiiTioners for the Affairs of India to the Chairman and Deputy Chairman, dated the 24th inflant ; alfo. Paragraphs propofcd to form part of the draught of a Letter to his Lordfliip, in reply : Gentlemen, India Board, 24th December 1812. THE conferences held at this Board with the Committee of Correfpondence, having had for their objecl the mod vmreferved and candid difcuflions upon points of the greatefl importance, with refped to the renewal of the Eafl India Company's Charter, and it having been underftood that no further fteps fhould be taken upon the fubjeft until a communication was made by me, in an official fhape, to the Court of Direftors, it was not without fome furprife that the copy of their refolution of the 18 th inflant was received by His Ma- jefty's Government, becaufe that refolution, adopted under fuch circumftances, appeared to them to have for its objeft an abrupt termination to all difcuffion. They cannot, however, confider it the lefs incumbent upon them, through you, as the proper official channel, to bring before the Court of Directors the princi- ples upon which the opinions I have to apprize you have been formed, in order to prefent to the Proprietors and the Public a corred view of a fubjed to which fo much importance is attached. I {hall, therefore, convey to you the fentiments of His Majefty's Government precifely in the terms I fhould have done if no intimation had been made of the refolution of the Court of Direftors of the i8th inflant ; and with that objeft I proceed to inform you, that with regard to thofe points to which the attention of the Committee of Correfpondence has been chiefly direfted at the conferences held at this Board, the principle uniformly maintained as the bafis of any arrange- ment for the renewal of the Eafl India Company's Charter, viz. that the mer- chants of this country have a fubflantial claim to as much liberty of trade as they can enjoy without injury to other important national interefts, cannot be departed from. It was in the hope that the opening T)f the export trade with India to the mer- chants of the City of London and of the out-ports, whilfl the import was con- fined to the Port of London, might not be found inconfiftent with this principle, that a difpofition was felt by the Government to propofe an arrangement to that cff"ea. In confequence, however, of the promulgation of fuch an intention, feveral perfons interefled in the commerce of the out-ports reprefented hi the flrongeft terms, that the propofcd limitation of the import trade from India, rendered the extenfion of the export of no value to them ; and they declared themfelves prepared to maintain that this limitation was not called for by any adequate motive of public interefl. They urged their claim to an equal participation in the general trade to India, and their conviftion, that the ground upon which the exclufion in favour of the Port of London was defended, viz. the additional danger of fmuggling, could not be fupported ; and they were fatisfied that the alleged danger might be obviated by revenue regulations. They alfo entered largely into the fubject of the China trade, contending ftrenuoufly againfl the renewal of the Company's exclufive Charter, and ftated their reaibns for believing, that meafures might be adopted by which that trade could be open, without injury to the revenue, and without liazarding the continuance of the intercourfe with the Emperor of China's do- minions. The importance attached to thefe reprefentations induced His Majefty's Go- vernment to revife the arrangement which had been in contemplation ; and although they did not fee caufe, under all the circumftances bearing upon this queftion, -oKt/ CHAIRMAN, &c. of The EAST INDIA COMPANY. 39 queftion, to alter the opinion they had entertained of the propriety of continuing the cxifting rcftrictiong upon the commercial intorcourfe with China, and of pre- ferving to the Company the monopoly of the tea tra.de, they neverthelefs felt that the merchants belonging to the out-poits had eftablillied a claim againfl an ab- folute reftriction-of the import trade to the Port of London. Under this impreflion I addreflfed my letter to you on the 27th of April ultimo. The obfervations made by the Committee of Correfpondence, in their reoly of the 29th of the fame month, did not fail to engage the ferious attention of His Majelty's Government ; but after the beft examination of thole obl'ervations, aided by all the information they have obtained from the Boards of Culloms and Excife, they are not enabled to concur in the opinion, that the propofed exten- fion of the import trade from India would be produclive of any great increafe of fmuggling, and certainly not to the extent flated by the Court of Dircdors. It is conceived, that the apprehenfions entertained on this account might be obviated by various regulations, fach as confining the trade to thofe ports which are, or may be, fo circumftanced as to afford fecurity to the due colledion of the revenue, by the limiiation of it to veffels of four hundred tons burthen ; by at- taching the forfeiture of the ihip and cargo to the difcovery of any illicit articles on board ; by an extenfion of the Manifeft Aft ; by regulations for checking the praflice of fmuggling in the Ihips of the Company ; as well as by other provi- fions too minute to be entered into at prefent, but which will of courfe be at- tended to in difcuffing the details of the fubjefl:. I am perfuaded it will not efcape your obfervation, that from obvious confider- ations the Englifli Channel mull at all times, efpecially in time of peace, afford facihties and inducements for fmuggling, which do not occur elfewhere to the fame extent, on account of the clandefline traffic already eilablifhed, and the ready communication with the oppofite fhore. But with refpefl: to the whole of this part of the queftion, it is impoffible to lofe fight of the deep interefl which the Government mull feel in the prevention of fmug- gling. The interefts of the Company are no doubt involved in it, but thofe of the Government are ftill more concerned ; and it cannot be fuppofed ihat they would bring forward any propofition which appeared to them likely to endanger a revenue of from three to four millions, or that, if a defalcation fhould unex- pectedly arife, they would not immediately take meafures for applying a remedy. 1 Jip Company have therefore an ample ground of confidence, not only in the difpofition of Government, but in their effeftual co-operation on thofe points on which the Court of Directors appear to feel the greatell anxiety, and on which they urged their ftrongeft objedions to the propofed arrangement. The fcveral articles which may be imported from the countries within the limits of the Company's Charter, and which are charged with an ad valorem duty, al- though, with the exception of tea, they bear a very fmall proportion to the whole of the revenue collecled from the trade from India and China, are neverthelefs of fufficient importance to demand the attention of Government, as the quellion may affed the interefts of the Eafl India Company, as well as thofe of the public revenue. With this view, it will be neceffary to confider, whether, with refped to fome of them, a rated duty might not be fubftituted ; and whetlier regulations may not be made for the fecurity of the duty, ad valorem, on thofe articles which Ihall continue to be fo charged, and which at the fame time fliall prevent their being purchafed at a price likely to operate injurioully to the manufadurers of tliis country. The juftice of the obfervations refpeding the additional number of Europeans that vv'ould find their way to India in confequence of the extenfion of the trade, luuil be admitted to a certain extent ; but it is obvious that this danger would arill- from the extenfion of the export trade to India, and would fcarcely be leffened by confining the import trade to the port of London. Every individual during his refidence in India would of courfe be fubjed to the exifting regulations of the local governments. (32.) H • The 3© CORRESPONDENCE bei-ioem PRESIDENT cf INDIA BOARD The fituatlon of Lafcars, who arc occafionally employed in the navigation of fliips from India to this country, would demand the humane interpofition of the Legiflature ; and there can be no doubt that effectual provifion for their mainte- nance while in England, and for their return to India, will be made. Having gone through the principal points to which our recent conferences have related, it may be proper for me to apprize you, that His Majefly's Govern- ment are of opinion, that the eflabliniment of King's troops, which may be requifite for the prefervation of the peace and fecurity of the Britifli pofleffions in India, muft depend upon circumftances that it would be difficult to anticipate ; but as thefinanrial fituation of the Company may render it neceflary that the numbers to be maintained at their charge fhnuld be limited, there can be no obje£lion to propofe to Parliament to fpecify that number by legiflative enaft. ment. I have thus endeavoured to bring the fentiments of His Majefty's Government before you, with the fame candour that has been evinced in our recent difcuflions ; and I can venture confidently to aflure you, that my colleagues, as well as myfelf, are moll anxious to promote fuch an adjuftment between the Public and the Court of Proprietors as may be fatisfadory to all parties. The expediency of adhering to that fyftem by which the government of India has been adminiftered through the intervention of the Company is ftrongly felt by His Majefly's Government ; but it mufl not be fuppofed that there are no limits to that expediency, or that there are no advantages which might refult from a different courfe. It is for the Court of Proprietors to decide, whether their own interefls, as well as thofe of the numerous perfons depending upon them, both at home and abroad, can befl be preferved by their rejeftion of, or acquiefcence in, thofe conditions, upon which alone, confiftent with their public duty, His Majefly's Government can fubrait a propofition to Parliament for the renewal of the charter. You, gentlemen, muft be aware, that from its approaching expiration, provifion muft be made, without delay, for the future government of India, and that His Royal Highnefs the Prince Regent, in his fpeech at the opening of the prefent feffion, has called upon Parliament to make fuch provifion. I have the honour to be. Gentlemen, Your moft obedient and faithful humble Servant, (Signed) Buckinghawjhire. The Chairman and Deputy Chairman of the Court of Directors. AT a Secret Committee of Correfpondence, the 30th Dec. 18 12. DRAUGHT of a letter to the Prefidcnt of the Board of Commiffioners, in reply to his Lordfhip's letter of the 241!! infiant, was read and unanimoufly approved. AT a Secret Court of Direftors, held on Wednefday t!ie 30th December 1812. DRAUGHT of a letter to the Prefidcnt of the Board of Commiffioners, in reply to his Lordfhip's letter of the 24th inftant, was read and unanimoully approved. My Lord, Eaft India Houfe, 30th December 181 2. WE were honoured on the 25th inftant with the letter wliich your Lordihip was pleafed to addreis to us on the preceding day, and have laid it before the Court ot Direftors. We are inftrufted by the Court to acquaint your Lordfliip, that a General Court of Proprietors of Eaft India Stock has been fummoned, for the fpecial purpofe of taking into confideration the important fubjefts treated of in your Lordfliip *s letter ««i CHAIRMAN, &c. 0/ The EAST INDIA COMPANY. 31 letter ; and we fhall lofe no time in fubmitting to your Lordfliip the refult of the deliberations at that meeting. In reference to the firfl: paragraph of your Lordfliip's letter, in which the refo- lution paffed by the Court on the i8th inftant is ftated to have caufed fome fur- prife to His Majefly's Government, as appearing to Iiavc for its objeft an abrupt termination to all difcuffion, we are defircd by the Court of Direftors refpedlfuliy to offer the following explanation : Your Lordiliip is aware, that at the commencement of the recent conferences on the fubje*;;!: of the renewal of the Company's Charter, it was agreed between your Lordfhip and the Deputation from the Court, that no minutes fliould be taken of what pafled in converfation ; accordingly no particular communication was made prior to the receipt of your Lordfhip's letter of the 24tii inftant, of the refult of thefe conferences ; but an earneft defire having been exprefled by thofe gentlemen in the Direction, who are not membeis of the Committee of Correfpondence, to be informed whether the diilerences of opinion formerly known to exift on fome important points between His Majefty's Governnient and the Court were in a train of reconciliadon, and the general anfwer which we thought ourfelves bound in duty to give not having tended to afi'ord them the fatisfadlion they expefted, they deemed it proper that the fenfe of the Court refpefting the queftiou of the Out-ports fliould be formally notified to your Lordfhip, and in confequencc- the unanimous refolution of the i8th was tranf- mitted. Had the Court perceived that that proceeding admitted of the interpretation which has been put upon it by His Majefty's Government, they would alfuredly have taken pains more effectually to guard againll fo great a mifconception of the real intention, which was no other than to mark their adherence to the opinions they have uniformly entertained on the difputed queftion, of extending the import trade from India to the out-ports of this kingdom, which had formed the principal fubjed of difcufliou between the members of His Majefty's Go- vernment and the Committee of Correfpondence. It was certainly defirable for the members of that deputed Committee, and it was thought that it might not be unacceptable to your Lordfliip to know that the fentiments which they had expreffed in the courfe of difculfion were fanftioned by the unanimous con- currence of the body by whom they were delegated. The mode in which the- refolution was adopted was conformable to the ufage of the Court of Directors on iblemn occafions, namely, after a report from a Committee of the whole Court, which always requires fignatures, and which in the prefent inftance was fubfcribed by every Direftor. We truft, my Lord, that this explanation of the meafure alluded to will prove fatisfaftory to your Lordfhip and the other members of His Majefty's Govern- ment ; and while we return our fincere acknwlcdgemenis for the attention v/ith which. our reprefeiitations have been liftened to, in the various interviews with which we have been honoured by your Lordfhip and His Majefty's Minifters who attended, we hope, at the fame time, to ftand perfe6lly acquitted of any defign, eit'ier to prevent or embarrafs a full and deliberate difcuftion of the great interefts at ftake. It is matter of deep concern to us to find that His Majefty's Minifters feeni' ilill to adhere to the principle of opening the out-ports of the United Kingdom to the importation of commodities from India. We have already, in our letters of the 15th and 29th April laft, fully ftated the dangers that muft refult to the Company from fo great an enlargement of the privilege in Eaftcrn commerce to Britifh merchants. We prefume to think our objections to that enlarge- ment have not been adequately anfwered ; and we have to exprefs the concern felt by the Court, that no communication has yet been made to them, of thofe reprefentations which firft led His Majefty's Minifters to entertain, and which induce them ftill to adhere to the opinion, that the public intcrefl will be beft confulted by not confining the import trade from the Eafl Indies to the port of London. 32 CORRESPONDENCE beiwccit PRESIDENl" of INDIA BOARD London. It would occafion much flitlsfaflion to the Court fliould fuch a com- munication have the clFect of obviating their objections, even in part, to a mea- fure, which the mofl imperative confiderations alone could have influenced them to oppofe ; and were it unfortunately to fail in producing this effeft, it is never- thelels defirable that the Court of Diredors fiiall have an opportunity of renew- ing the queftion with all the intelligence that can be brought to bear upon it. Your Lordlliip has, indeed, been pleafed to favour us with a brief fummary of fome of the arguments ufed by the merchants on this fubjeft. Arguments, we muft own, not in the leaft convincing to us ; and we affure ourfelves, that in adverting to them your Lordfhip does not mean that the Company fhould be concluded, or their fate determined, by what thofe who oppofe their interefts choofe to advance, although their reprefentations appear to have fo far influenced His Majefty's Minifters as to lead them to think that the merchants " have a *' claim to as much liberty of trade as they can enjoy without injury to other *' important national interefts." In thofe interefts, we may prefume, are com- prehended both the confideration of the public revenue, and the maintenance of the Eaft India Company. But what that extent of trade is, " which can be " granted with fafety to thofe interefts," is ftill a queftion undetermined. We confefs, that the regulations contemplated by His Majefty's Minifters, ib far as your Lordftiip has been pleafed to explain them to us, appear by no means calcu- lated to remove our fears. The comparative intereft which the Public and the Company have in pre- venting the fmuggling of tea was defcribed in our Letter of the 29th April ; and though it be true, as your Lordihip obferves, that the ftake of the Public in this concern is numerically greater than that of the Company, yet the im- portance of the Company's inferior ilake is to them infinitely greater than would be to the Public the importance of the lofs the revenue might fuftain : becaufe, as matters now ftand, the Company have no certain dependence but the China trade for refources eflential to their fubfiftence. We do not the leaft queftion that His Majefty's Minifters would be thoroughly difpofed to frame additional regulations to prevent fmuggling tea, ftiould thofe now in contemplation be tried and be found infufficient. But, befides that we ex- tremely diftruft the prafticability of preventing fmuggling to a large extent, where the temptations would be fo great, we muft entreat your Lordfhip and His Majefty's Minifters ferioufly to confider, what would be the fituation of the Company if they obtained a charter upon no better terms than thofe now propofed, and upon trial it fhould be found that their commercial income failed, and that their dividend ftiould be unprovided for or lowered : their ftock would im.mediately fall j their credit would be diminifhed ; the currency of their aflfairs, in their paynients particularly, v.'ould be impeded ; general alarm and diflatisfadtion in all parties connefted v.-ith this great eftablifhment would be felt ; and there would be a neceffity for going to Parliament again, when evils great, perhaps irretrievable, would have been experienced. It is the duty of the executive body of the Company to carry their views forward to fuch contin- gencies, and to feek provifion againft them ; and we muft beg leave to add, that whatever rights the merchants may claim, or the nation be pleafed to beftow on them, it cannot be equitable to make conceftions to them which fhould deftroy the Company who acquired the Indian empire, and who are as much the ov\Tiers of the chief feats of European trade in that empire, as they are of their freeholds in London. With refpedl to the refort of Europeans to India, if we do not mifunderftand the fcope of your Lordfliip's obfervation, it feems to imply that their numbers might be in propordon to the export trade from this country. If indeed they were to be regulated by this fcalc, our apprehenfions would be the lefs ; but we have no difficulty in acknowledging, that in addition to all our other arguments againft admitting importations to the out-ports, we think that the granting of this privilege would increafe the fpirit of rafli fpeculation from Great Britain and Ireland, and thereby the number of adventurers in fearch of fortune in India ; for md CHAIRMAN, &c. cf The EAST INDIA COMPANY. 33 for It is to be remembered, that thofe adventurers would naturally feek for new eflablifliments, even out of the Company's territories, and there endeavour to acquire real property. But, my Lord, this is only one of many points which require particular regu- lations ; and at the ftage at which we are now arrived in the negotiation we cannot but (late to your Lordihip the anxious \vMi of the Court to be made ac- quainted with the whole plan which His Majeliy's Government mny have it in contemplation to recommend to Parliament for a renewal of the E-afl India Com- pany's Charter, including fuch amendments in the fyftem of the Company's ter- ritorial government, and adniiniftration as pad experience may have indicated ; the regulations deemed necefiary for promoting the dil'cipline and efficiency of the Indian army ; the amount of force which His Majefty may be empowered to maintain in India at the expenfe of the Company, and the proviiions that may be thought requifite for fettling the relative powers of the Board of Commiflioners and the Court of Directors. Though thefe topics were fpecifically mentioned in the letters from Lord Melville to the Chairs of the 30th September 1808, and the aifl March 1812, the Court arc fiill, in great mealure, uninformed ot the arrangements in regard to them, which His Majefty's Government may have in view to propofe ; and we entreat alfo, that your Lordfliip will enable us to lay before the Court of Diredors, and ultimately the Proprietors, in any fliape that you may judge fit, the information, additional to that of tlie . merchants already folicited, on which the determination of His Majefty's Minifters refts, as to the extenfion of the trade to the out-ports, and their intentions upon the other parts of the arrangement to which we have now adverted. The requefts we now make appear to us the more reafonable, from the weighty intimation conveyed in the concluding part of your Lordfhip's letter. It brings into view, (to repeat an expreflion ufed in our letter of the 15th April,) " quejiions of the lajt importance to the fnfety of the Britif} Empire in India, and ^•' of the Brit'rfh Confiitution at home." This is a folemn fubjeft for the Country, as well as the Company, if indeed it fliould ever come under actual difculhon. , We have that confidence in the equity and wifdom of the nation, that, notwith- ftanding all prefent clamours, they will wi(h to do the Company jufticc, and to guard all the other great interefts which muft come into queftion ; but prepared as we fhall be, if forced into this fituation, to maintain the rights and claims of our conftituents, we muft yet exprefs our hope, that the Company will not be reduced to the hard alternative of thus having to contend for all that is dt^ar to them, or to accept a Charter on terms which will not enabk them to execute the part hitherto affigned to them in the Indian fyftem. We have the honour to be. My Lord, The Right honourable Your Lordfhip's molt obedient the Earl of Buckinghamftiire, humble Servants, &c. &c. &c. (Signed) Hugh Inglis, Robert Thornton, AT a Secret Court of Dircftors, held on Tuefday the 5th January 1813. THE Chairman laid before the Court, a letter from the Right honourable the Prefident of the Board of Commiffioners for the Affairs of India, dated the 4th inftant, which was read. Gentlemen, India Board, 4th January 1813. I HAD the honour to receive your letter of the 30th ultimo, and proceed to convey to you the fentiments of His Majefty's Government, as far as it would feem advlfable under prefent circumltances, to continue the difcuflion. •.^(32.) I With 34 CORRESPONDENCE heiwem PRESIDENT of INDIA BOARD With refpeft to your obfervation, that the reprefentations which induced His Majefty's Government to form their opinions upon the fubjeft of the er, in confequence, to enter into the confi- deration of the Petitions above referred to ; Ordered, That the faid Petitions be laid before the Committee, AT and CHAIRMAN, &c. of The EAST INDIA COMPANT. 43 AT a Court of Dire£lors, held on Wednefday the loth February 1813. A REPORT from the Committee of Correrpondenee, dated the 9th inflant, being read, detailing at confiderable length their obfervations and opinions on the arguments urged in the Petitions from the Outports,— that the Ea(l India Trade may be thrown open ; — and the Committee alfo fubmitting draft of a Letter to the Earl of Buckinghamlhire, tranfmitting a copy of the faid Report for his Lordfliip's information : Refolved unanimoufly. That this Court approve, the faid Report and Draft of the Letter therewith fubmitted, and that the faid Letter and Report be tranfmitted to the Earl of Buckinghamfliire, for his Lordfhip's information ; accordingly, draft of a Petition to the honourable Houfe of Commons, praying a renewal of the Company's exclufive privileges of trade, was read, and unanimoufly approved ; whereupon. The draft of an Advertifement, giving notice that a General Court will be held at this Houfe on Wednefday next, the 17th inftant, for the purpofe of taking into confideration the faid Petition, was read and approved. REPORT of the Committee of Corrcfpondence, dated the 9th Febru- ary 1813 ; noticed in the preceding Minute. THE Prefident of the India Board having, in his recent Letter of the 4th January, referred the Court to the petitions prefented to Parliament, in the courfe of laft Seffion, from the Merchants and Manufacturers conneded with the Out- ports, for fuller infoiTnation than had been then imparted to the Court, concern- ing the reprefentations which had induced His Majefty's Miniflers to be of opinion that the Import Trade from the Eaft Indies fliould not be confined to the Port of London, Ypur Committee determined on examining thofe Petitions as they fiand recorded in the Votes of the Houfe of Commons. But in going into this talk, your Committee found that it involved a review of all the Petitions lately preferred againft a renewal of the Company's Charter, becaufe the arguments in favour of the Outports were interfperfed through them. The whole of thofe Petitions have therefore been perufed ; and one remark which immediately prefents itfelf on that perufal, a remark entitled, in the opinion of your Committee, to particular atten- tion — is, that thofe arguments in behalf of the Outports are, in a very material degree, the arguments which are direftly urged for the abolition of the whole of the Company's exclufive commercial privileges ; and the claims of the Outports are contended for, as a part of the entire freedom in the Eaftern trade, which is demanded for ail the fubjefts of the empire. The places efpecially which are ftridly Outports, proceed, in their Petitions, upon principles which arraign every fpecies and degree of monopoly ; and it is chiefly from thofe principles that they deduce as a confequence, the right of the Outports to a free participation in Indian imports. But as, in the deliberate and jufl: opinion of His Majefty's Minifters, thofe principles and arguments are not valid for the main claim of the Petitioners, it is to be prefumed, that neither can they in the fame opinion be valid for the fubordinate claim of the Outports, fo far as it is refted on the fame foundations ; which, however, are the foundations built on by the generality of the Petitions. The few remaining arguments on this queftion, relate principally to the facility and certainty with which the revenue may be collefted at the Outports ; and to the fafety with which the honourable men compofing the commercial clafs of this Country, may be admitted to all the fettlements and countries of the Eaft. But thefe are mere aflertions of opinion, to be clafled with the " untried theories" of the time, and, as far as the light of experience goes, oppofed by it. If they were even proved, which they are in no degree, they would not by any means fatisfy all the great interefts abroad and at home, which are involved in the queftion of the Outports i 44 CORRESPONDENCE between PRESIDENT of INDIA BOARD Outports ; and therefore your Committee are entirely at a ]ofs to difcover how the arguments in favour of thofe ports, ns they Ihiud in the Petitions to Parliament, refting chiefly on principles which His MajeRy's Government do nut admit, have fo prefented theiul'clves to the Minifters, as in their view " to edablilh a claim " againft an abfolute reftri£tionof the Import Trade to the port of London;" or how, from the ^;if/>(7r/i? reprefentations of thofe Petitions, which proceed on the demand of an entire liberty of trade to India and China, a demand refifted by His Majelly's Government, any clear definitive idea is to be obtained of that degree of " liberty of trade, which the merchants may enjoy without injury to " other important national interells." And hence your Committee humbly con- ceive, that this problem, fo important in its nature, namely, the meafure of fur- ther liberty which may be fafcly granted, ftill remains to be folved, and requires deliberate and accurate inveRigation. Thefe remarks may perhaps receive fome confirmation from the fuccinct view which your Committee, enlarging fomcwhat their firfl defign, are now about to fubmir, of the principal matters contained in the Petitions for the abolition ol the Company's commercial privileges, and of the anfwcrs to which they are obvioufly liable : Although the fame allegations which are thus urged have often been com- bated, it may be proper, en account of the channel in which they now come for- ward, and of the publicity of the prcfent difcuffion, to give fome diHinft reply to them, which will at leaft further evince the difpofition of the Court to fhrink from no charge, and to fhun no inquiry. All the material objecllons which appear in thofe Petitions to the renewal of the Company's Charter, may be comprifed under the following heads : ift. That Commercial Monopolies, efpecially if extenfive and long continued, are in their nature and according to the experience of paft ages, inexpedient, im- politic, and unjuft ; and that the monopoly of a joint flock Company muft be managed with negligence, wafte and prodigality, unlikely to be pradifed by pri- vate Merchants ; (fome of the Petitions admit that monopolies may be tolerated in the beginnings of trade,) 2d. That the monopoly of the Eaft India Company has been injiirlous to the nation, great evils having refulted from it : that it is inadequate to an extended trade ; has locked up national capital ; has retarded improvement ; has not ad- vanced trade, nor carried it to many countries within the Company's limits ; that it cools the ardour of generous and liberal compeution '; has deprived the Woollen manufafturers of Gloucefter, Wiltfhire, Exeter, Shrewfbury, and the manufac- turers of other places; fome, of fupplying an immenfe population ; others, of preparing articles for China, on lower terms than the Company allow ; others, of carrying on trade with India and the countries north of it ; others, of receiving orders, infinitely beyond what they now obtain from the Eaft India Company : that it is (particularly in the opinion of the Staffordfhire potters) unfavourable to the introdudfion of new articles : that its exports to the Eaft do not amount to a fifth of the exports of this country to America: that all ideas of participationin the profits of a monopoly trade, by payment into the Exchequer, ever will be vain and illufory ; of which the difappointmtnt of the nation, in regard to the Company, is a complete illuflration: that the intention of opening the trade will be fruftrated, by leaving the Company any controul over Private Trade : that it is proved, by undeniable documents, that if the trade be allowed to remain under its prefent reftridions, it will languifh, decay, and pafs into the hands of other ftates ; that it muft, if continued, diminiih the fources of private wealth and na- tional revenue: that the real'onings in favour of the monopoly proceed from narrow partial views, have been demonftrated fallacious, and will apply equally to every other branch of Britifli Commerce : that it is humiliating to individuals, degrading to the national chara£ler, and a national grievance. 3d. That notwithftanding the incrcafc of the Company's territories, their trade has decreafed, though proteded from enemies and hoftile rivalry ; that fmce the renewal of the Charter in 1793, they have added greatly to their debt ; that the pecuniary and CHAIRMAN, &c. e/TPIE EAST INDIA COMPANY. 45 pecuniary participation held out to the country In 1793 has not been realized, but has been converted by the Eaft India Company into repeated claims on the public purfe and credit for enormous funis to fupport their eftabliflnnents ; and that fur- ther and ftill greater pecuniary afliftance is now required, to avert cmbarraffments in which they may be foon involved. 4th. That a full and free right to trade to and with all countries and people in amity with His Majefty, and more particularly thofe countrits acquired and main- tained by the efforts and valour of the forces of His Majejly^ is naturally the un- doubted birth-right and inheritance ot the people of this empire, of every fubjeft of it, and every port in it, and that the unreftraincd exercife of that right is cflcn- tiaily neceflary to the maintenance of the manufacturer?, and profperity of the commerce of this country ; that the confinement of the Eaftern trade to the port of London would be a violation of that right, at once unneceffary, unjufl, and impolitic — unneceffary, becaufe the duties may be collected with greater eafe and lefs lofs by pilferage in the Outports, the taxes on Weft Indian and American produce being now colleded with known fafety — unjuft, becaufe every mercantile place in the United Kingdom is entitled to the fame privileges — and impolitic, be- caufe the fuperior economy and difpatch that prevail in the Outports, are requifite to fecure an equality with foreign nations. In thcfe claims for the Outports, there is a general concurrence in the Petitions from Plymouth, Glalgow, Paifley, Dundee, Arbroath, Leith, Edinburgh, Belfaft, Briftol, Liverpool, and Hull ; of v/hich three laft-mentioned places, Briftol and Liverpool ftate, that they have, in con- templation of the opening of the trade to India, enlarged their docks ; and Hull, that there fhould be no reftraint as to the fize of veffels to be admitted into the Indian trade. 5th. That no fatisfaSory reafon can be affigned, why the tirade to China fliould not be opened ; that the difficulty apprehended in coliedting the Tea duties is ideal j that the Britifli charafter forbids injurious fiafpicions as to inconveniences in India and China from opening the trade : — that, in the avowed opinion of one fet of Petitioners, the merchants of this country fhould be allowed to trade direftly from the Eaft to the Britilh Weft Indies ; and another fet claim, that the products of the Eaft fiiall, without being firft landed in this kingdom, be tranfported to the Britilh Weft Indies, the American Colonies, and all other Countries fouth of Cape Finif- terre, and within the Mediterranean. 6th. That the exifting monopoly has, contrary to reafon and juftice, led to a fingular peculiarity, the conceffion of privileges to foreign nations in amity with His Majefty, which are rigorouily denied to merchants of the Britifh Empire ; or according to others, that the trade is open to all tbt u'cr/if except Britifti merchants : that the American States have long enjoyed this trade at the expence of our own people, employing Britilli capital and compelling the Company to fhrink from competition ; that they have engroffed a great part of this trade and alfo of that to China, which the Company formerly poffeffed ; that the American merchants being unfettered, have underfold the Company in the markets of Europe, have deprived them of thofe markets, and alfo the markets of South America, the Weft Indies, the Mediterranean and Malta, whilft the Englifti trade has become lefs extenfive and profitable ; that the example of the citizens of the United States, who have evinced the fuperiority of individual induftry, when oppofed to the negligence and prodigahty of a joint ftock Company, and the delays and abufes of their concerns, proves the competency of Britifh individuals to cany on an extenfive commerce to the Eaft Indies, China, and other countries within the Charter of the Company : that the monopoly is favourable to foreigners, injurious to Britifli Subjefts, and its abolition neceffary, to enable Britlfti merchants to meet neutrals and other foreigners, in fair competition, with the prod ads of the Eaft, in their own mar- kets : or at leaft, according to others, that Bi-itifh fubjecls fhould be put on a foot* ing with foreigners in this trade. 7th. That the diftreffes and privations of the manufacling and trading claffes (diftreffes aggravated, fay fome, by the monopoly of the Eaft India Company) under the Continental fyitem of Buonaparte, the difputes with America, the ex- (3a.) M cluficn 45 CORRESPONDENCE belweeti PRESIDENT of INDIA BOARD clufion from ufual markets, the ftagnation or decline of trade, are grievous ; that the mercantile, man ufa during, and (hipping interefts all fufFer ; that the country- is burthened with great naval and military eftablifliments; and that under fuch hardfhips, prefTures, and exclufions, every poflible relief is wanted, and new fources of trade ouc;ht to be looked for ; and that on account of the exifting war, .and for the maintenance of our naval fuperiority, and the prefervation of our com- mercial, maritime, and financial interefts, an open trade is neceffary. 8 th. That it is a well-afcertained faft, that during the time of the Proteftorate, there were men who boldly violated the Company's Charter, and carried on the trade with fuch fuccefs, that they were able to fell the commodities of the Eaft, ia the different markets of Europe, on lower terms than had ever been known ; and at this day individual merchants have traded to India with profit, even under all the difficulties, delays, and taxes impofcd upon them by the Company ; that the Private Trade has continued to increafe, although fettered with many reilriftions, but that thefe reftrictions deter people unacquainted with India, and refiding at home, from engaging in the trade ; that a free Trade to the Eaft would be a mea- fure admirably calculated for removing prefent evils, would be a fubftitute for the lofs of European commerce, an equivalent for all other markets, and would necef- farily open new and extenfive markets, a field greater than any other country offers, and beyond the grafp of the enemy ; a field to Britilh fldll, induftry, and enter- prize, and to capital otherwife ufelefs, whiift the national refources are ftunted ; — that ihouf'.nds who are now reduced to idlenefs and poverty, might be actively engaged ; that the capital, fpirit and knoivkclge of Bvitifh merchants are unbounded ; —that a free Trade to India would turn the wealth acquired by the foreign merchant, into the pockets of the fubjedts of this Country ; would excite a fair emulation to bring all the produce of the Eaft to its proper level in the home market, to the g»eat benefit of this country ; would enable our manufafturers with more advantage' to exert their Ikill and induftry to produce new articles of trade, and to give full employment to the operative claffes of the community ; would cir- culate the trade, now confined to London, through every part of the United King- dom ; would be the means of increafing our maritime ftrength, our financial refources, and the wealth and glory of the Britifli empire. Such is the general tenor of the Petitions on this head ; but the language of the one from Sheffield is fo animated and fanguihe, that it may not be improper to tranfcribe a part of it :— ■ *' The Petitioners are fully perfuaded if the trade to the Eaft Indies were thrown "open to all His Majefty's fubjefts, fuch new and.^abundant markets would be ■*' difcovered and eftabldhed, as would enable them to fet at defiance every eftbrt '" to injure them, by that fworntcnemy to the profperity and the peace of Europe, " the prefent unprincipled P..ii4er of France ; and that the Petitioners doubt not, *' if the trade of this United Kingdom were permitted to flow unimpeded over *' thofc extenfive, luxuriant and opulent regions, though it might in. the outfet, " like a torrent repreft arid fwoUen by obftruftion, when its fluices were firft " opened, break forth with uncontrollable impetuofity, deluging, inftead of fup- " plving the diftricl bel'ore it ; yet that very violence which at the beginning might " be partially injurious, would in the ifl"ue prove highly and permanently benefi- " cial ; no part being unvifited, the waters of commerce that fpread over the face " of the land, as they fubfided would wear themfelves channels through which " they might continue to flow ever afterwards, in regular and fertilizing flreams; *' and that to the wealthy, enterprizing, honourable, and indefatigable Britifh " merchant, conducing in perfon his own concerns, no obftacle would prove in« " furniouniable, no prejudice invincible, no difficulty ditheartening ; wants where *' he found them he would fupply ; where they did not exift he would create them, *' by affording the means of gratification." 9th, That the imagined hardlhip of depriving the Company of the only lucra- tive branch of their trade, that to China, will be alleviated by the wealth, influ- ence, knowledge, and experience, which in their united capacity they will ftill be enabled to oppofe to the unaffifted efforts of private merchants : — that if, indeed, the Company can carry on trade to greater advantage than the private merchant, ■they have nothmg to fear, they v/ill reap their merited reward by the benefit of competition j end CHAIRMAN, kc. r/ The EAST INDIA COMPANY. ^ 4^ cempetition ; and without competition neither would commerce have rifen to its prefent ftandard, nor will it increafe to bear the incceafing expenccs of the nation, ^nd with refpeft to the danger of exccfiive fpcculation, it is faiil by Glafgow to be imaginary, becaufe the enteiprize of individuals is uniformly limited by their means and fuccefs ; becaufe any evil of this nature is temporary, and checks itfelf ; and that the -very uorjl ihat can cccur in the event nf the abandonment of the trade by the Public, would be, that 7iuiitcrs luould again return to their prefent Jiate. On all the grounds, therefore, flated in the Petitions, they in general require a full and entire freedom of trade tj the Eaftviird of the Cape of Good Hope, including China, and all the countries within the Charter of the Eall India Company ; and for the means of indemnifying or remunerating, the claims of the Company, one peti- tion propofes, " a fair and equal impofi on the trade in quefiion.'" Your Committee having thus fubmitted an abftracl:, under different heads, of the contents of the petitions, in which abftrad they are perfuaded nothhig mate- rial is omitted, will now proceed to offer fome obfervations on each of thofe heads. And firft. With regard to the doftrine of monopolies in general, yoiu' Com- mittee do not conceive that they are much called upon to enter jnto any difcuffion of it ; becaufe what is termed the monopoly of the Eafl India Company is, as it now exifts and has long exiited, an inftitution of a fmgular nature, formed upon principles peculiar to itfelf, not merely or chiefly for the purpofes of trade, and muff be examined with reference to the ends of its inftitution, and the importance of thofe ends, which will be the fubjeft of the next article. In the mean time, it may be obferved upon this firft head, that the ablefl writers upon political economy, and the moft ftrenuous againft monopolies, have not con- demned them fimply and univerfally, as moft of the Petitions now in queftion do. Even Dr. Adam Smith acquiefces in the eftablilhment of the Chartered Banks :of England and Scotland, which are a fpecies of monopoly; and he praifes the AQ. of Navigation, which is founded on the principle of exclufive privilege. He admits alfo the propriety of a temporary monopoly of new machines and new books ; and what is more immediately to the prefent purpofe, he grants, in agreement with Montefquieu and others, as fome of the petitioners feem alfo can- didly to allow, that " when a Company of Merchants (to ufe his own words) " undertake, at their own rilk and expenfe, to eftablifli a new trade with fome *' remote and barbarous nation, it may not be unreafonable to incorporate them *' into a joint ftocls. Company, and to grant them a monopoly, in cafe of their *' fuccefs, for a certain number of years. It is the eafieft and moft natural way " in which a State can recompencc them for hazarding a dangerous and expen- " five experiment, of which the Public is afterwards to reap thfe benefit." But, even in this propofition, it may be obferved, that the interefts of the two parties, the Company of Merchants and the Public, feem fcarcely to be equally cared for. The privilege given by the State, is a privilege for its own benefit, which is to coft it nothing, fhould the experiment fail ; and of which it is to enjoy the permanent advantage, if the experiment fucceed. It is fafe from lofs ; and, befides its fiiarc of what prefent advantage there may be, is to have ultimately the fee fimple of all the gain that may refult. Undoubtedly, in this cafe, tiie term cf enjoyment .by the merchants, after .all the feafon of hazard and viciffitude is paft, fliould be ample ; and it were to be wilhed, that thofe who are now fo eager to take gra- ■ tuitous poffeffion of all the commercial eftabliihments formed at fuch immenfe rifks and expenfe by the Eaft India Company, would confider more equitably than the language of their petitions docs, the fair claims of a body, even if re- :garded merely in a commercial light, who have hitherto been working, through .a long feries of time, of difficulties and dangers, to the vaft benefit of the nation, .^hilft their own fair compenfation yet remains to be obtained. Secondly, With refpeft to that fpecies of exclufive privilege, called the Eaft India Company's monopoly, your Committee cannot begin their remarks upon, the accufations brought againft it, without lamenting the furpriCng want of infor- mation which the generality of the petitioners difcover reladve to the Company's fyftem, conduft and affairs ; and your Committee are compelled to add, a morti- 7 fy'ng 48 CORRESPONDENCE between PRESIDENT of INDIA BOARD fying defedt of nttention alfo regarding things that could not poflibly be unknown to the petitioners ; they trei t the whole queftion of the monopoly, as if it were purely a commercial queftion ; as if it involved no high queftion of policy ; as if it flood unconneded with the acquifition, the government and the prefervatioii of a great Indian Empire ; and as if, from its political relations, the queftion concerning it had no bearing on the Britifti conftitution. Thus, fay fome of the petitioners, " the reafonings in favour of the monopoly proceed from narrow *' partial views, demonftrated to be fallacious, and which will apply equally to " every other branch of Britifh commerce ;" whereas it is abundantly obvious, that the exclufive commercial privileges enjoyed by the Company in the Indian trade (liowever well entitled they are to them on other accounts) are contended for by them, and have been continued by the Legiflature, mainly becaufe deemed to be neccffary for the political government of India, and not at all on account of any pecuniary participation, which one of the petitions erroneoufly affumes to be now in queftion. The fame caufe alfo was underftood to require the continuance of the China monopoly, though that privilege ftaiids upon other irrefragable grounds, as the unlimited admillion of Britifti ftiips into any quarter of the Eaftern Seas could not be thought compatible with the fyftem adopted for the fecurity of our Eaftern territorital poffelfions. The commercial monopoly therefore is, in a word, an inftrument in the hands of the Company, for the political govern- ment of India. Such it has been maintained by them, and admitted by Minifters in the difcuflions refpedting the Charter to be ; but this great truth, either as a fadt or as a principle, is unnoticed in the petitions. Some of the petitioners are indeed fo juft as to recolledt that the India Company have territorial rights, and to fay that it is not their wifh to trench upon them ; but they do not feem to be aware, that thofe rights can be enjoyed only through the medium of commercial privileges, or that any provifion can be made for fecuring them compatibly with their own claims for an univerfal opening of the Eaftern trade. The petitioners proceed, not only as if the renewal of the privileges in the Indian trade were merely a queftion of commerce, but as if it were a queftion of ftridl monopoly, fuch as was agitated in King William's time. To the admillion given to Private Merchants into the Indian trade, by the Aft of 1793, enlarged by the arrange- ment of 1802, and in pradice occafionally ftill further extended (not to fpeak of the confiderable privileges enjoyed by the commanders and officers of the Company's ftiips) the petitioners do not advert, except to blame the Company for ihe alleged inefficiency of all thofe conceflions, which in reality greatly relaxed the monopoly, and made it what the late Lord Melville called a regulated or qualified monopoly. In thus cenfuring the Company, the petitioners refort to fome reprefentations formerly brought againft them, and fufficiently anfwered on their part ; except in refpeft to the irregular difpatch of the extra ftiips from India, a matter originating with the governments there from the political circum- ftances of the times ; but that controverfy is now paft, and quite irrelevant to the prefent ftate of things : for another point to be held up to particular atten- tion is, that the Company have lately acquiefced in vaftly larger conceflions, that is, in a general trade between the United Kingdom and India, through the port of London. Yet this new and great change in the Indian fyftem, the petitioners too generally overlook. That it has ever attracted their notice, is only to be in- ferred from their contending that the trade fliall be general to all the ports of the Kingdom ; but, in their attacks upon the Company, they aft as if the whole ori- ginal ftrufture of the monopoly were ftill ftanding and obftinately defended ; and when the Company acquiefce in large relaxations, the petitioners neverthe- lefs perfift in charging them with all the evils of the moft rigid monopoly, for the purpofe as it would feem of aggravating the cafe againft the Company in the eyes of Parliament and of the Public, and ftrengthening the prejudices •which fo much pains have been taken to diffufe. Thus the political pai't of the Company's fyftem and its intimate connexion with commerce, is left entirely out of fight ; and the prefent ftate of the Company's commercial privileges is not accurately 1 eprefented, nor the aftual ftate of the queftion concerning the future meafure of thofe privileges fairly brought into view. But and CHAIRMAN, &c. of The EAST INDIA COMPANY. 49 But it ought to be again and again prefTed upon the public attention, thai th e firft and great objed in any new arrangement for India, is not commercial, but political ; and that the fafe and beneficial adminillration of that empire, is a con- fideration paramount to all others. No one has denied, cither that the Company have conducted and do coiulud the adminillration to the great improvement of the fecurity and happincfs of the vaft population that empire contains, or that the government of it fhould remain with them, and confcqucntly that the means requi- fite to enable them to continue to execute fo great a truft, fliould alfo be afforded. The nature and extent of thofe means form, therefore, the precife quedion now at illue ; but on this important point, as has been already intimated, the petitions in general are quite filent, and the propofitions contained in them go to deprive the Company wholly of thofe m3ans, particularly the monopoly of the China trade, the reafons for continuing which will be explained in a fubfequent head. With regard to the effects of the monopoly on the manufaitures, trade, and other interefts of this country, if any thing faid in thefe days to the difcrcdit of the Company, could occafion furprile, it would be the reprefentatiojis given in the petitions on that head. The Company are accufed of obftructing the export of the manufaftures of this country, even by fome (v/ith an honourable exception of the reft) of thofe Woollen manufadurers who have owed their chief employ- ment to the Company's commiffions, continued for the benefit of the nation, under a certainty of deriving no profit from the exported article. Of thofe " undeniable documents," by wiiiehone of the petitions in an autho- ritative ftyle affirms, '•' it is proved, that if the- trade be allowed to remain under " its prefent reftrittions, it will languifh, decay, and pafs into the hands of other " States ; that the monopoly mud, if continued, diminifli the refources of pri- " vate wealth and of national revenue j" your Committee have never heard, and they cannot conceive that any fuch documents exift. It is more probable that the petitioners have put their own fenfe upon the ftafements of the Company, which furnifli the moft authentic materials in this cafe, and if fairly examined, with a reference to other relative circumftances, will lead to conclufions diredly oppofite. The fubjefl: of the American trade to India, which feems chiefly al- luded to, will be difcuffed in the fequel. That trade, as will hereafter more fully appear, has owed its incrcafe effentially to the ftate of war in which this nation has been placed for a long feries of years part. If the American trade with India were ftill going on, a much eafier and jufter remedy for the alleged evils of it could be found, than the extindion of the Company's remaining commercial privileges. But thefe heavy forebodings are pronounced, when America and every European nation (the diftrcffed one of Portugal excepted) are actually wholly excluded from the Indian feas. There feems to be a general and deplorable delu-Hon refpeding the pradica- bility of a vaft extenfion of the lale of the m.anufadures of this country, in India and China, and of-jhe produtlions of thofe countries here. This queftion will be the immediate fubjeft of a following article ; but your Committee may, in the mean time, confidently fav that the Company have, in a long courfe of years, made more numerous, perfevering, coftly experiments, in attempting to pufh the vent of Britifh commodities, particularly woollens and metals, in the Eafl, than the means, the refources, the fafety of private merchants, are likely to enable them to make. The correfpondence of the Company with their fervants abroad at different periods, on this interelling concern, would fdl many volumes. That the Eafl India Company, far from impeding the profperity of the country, as the petitions, in oppofition to hiftory and experience, allege, have by means of their monopoly effentially contributed to its wealth and its greatnefs, it will be much more eafy to fliew, than to difcover accurately, where the limit of the advantages refulting from their inftitution is to be fixed. They gave a very early impulfe to the manufactures and trade of this country ; they opened a new commerce, not with the Eaft only, but, by means of their returns from thence, with foreign Europe ; they foon increafed the fhip-building and improved the navigation of the kingdom, both which they have, in latter times, carried to a degree of ad- (32,) N vancement so CORRESPONDENCE between PRESIDENT of INDIA BOARD vancement that has made their fleets fcrviceable in the wars of the nation, and the commanders fuccefsful in adding to the naval glory of their country. Againft the jealous rivalfliip of the Portuguefe and Dutch, they, through a long courfe of hoftilities from a fuperior force, raaintained for this nation a fliare in the India trade ; they preferved it from being totally loft, amidft all the convulfions of the civil wars ; they outlived even the more dangerous innovations of fubfequent periods ; they upheld in India the national intcrefts againft the ambitious defigns of European enemies, and the defpotic violence of Native powers ; and in a long and arduous ftruggle, maintained, with little exception, at their own expenfe, they acquired a territorial empire for the Mother Country, which exalted its rank in the fcale cf nations. They have, fmce, expelled every European nation, except our ally of Portugal, from the Indian continent and ocean, and they have given a better government to an immenfely extended empire, than the EaO: ever faw before. In all this progrefs, not the ability and wifdom of their civil fervants only have been confpicuous, but the talents and valour of their military officers have figiially added to the glory and renown of the Britifli nation. By thofe officers, a grand army has been formed of native troops, in difcipline, attachment and efficiency, a juft fubjeft of admiration ; and from the time of the firft Clive downward, the exploits performed by the Company's military fervants in India, equal in bril- liancy thofe recorded in any period of modern hiftory. To all thefe public benefits is to be added, the dired wealth with which the Company have been the means of enriching the nation. The amount of thefe contributions, confifling in the profits of manufacturers, fiiip-builders and tradef- men, fhip-ovvners and officers, fervants and labourers, miners, re-exporters of Eaftern productions to foreign parts, and other defcriptions of perfons gaining by the Company's trade, in dividends to proprietors, payments to Government, and the influx of private fortunes acquired in India, efpecially in the lafl fifty-five years, may perhaps be moderately eftimated at one hundred millions fteriing. Such are the injuries, the grievances, the evils, fiich the degradation, which the Eafl India Company have brought on the country. Thirdly, The charges under the third head are nothing more than groundlefs accufations, calculated to render the Company unpopular, and, except the firft article, which is new, have been often anfwered ; as to this article, it is not true that, on the whole, the Company's imports have decreafed, although the fales have in fome years, fallen off, by the exciufion of Britifli commodities from the European continent ; an evil common to all the merchants ot this country, but now the occafion of a charge againit the Company. And what virtue can the expulfion of enemies and rivals from the Indian Seas have to increafe trade, if, when merchandize is brought to Europe, there is only a tardy and diminiihed lale for it ? Again, is it a thing of courfe, that recently acquired provinces, im- poveriflied, unfetiled, containing a people every way diffimilar to us, Ihould pur- chafe our commodities, when the inhabitants of other parts of Kindoitan, where U'e have been fettled for ages, have flill fo little relifh for them ? The ftipulation in the ACl of 1793, for a pecuniary participation by the Public, was a conditional fiipulation, depending on a contingency, which has rever become a reality but in one year, that immediately following the laft renewal of the Charter. The long war in which, with hardly any iutenniffion, this country has been engaged ever fmce 1793., has, by increafing the Company's expenfes beyond the moit ex- travagant fuppofition that could have been previoufly formed on that head, al>- forbed all the expected fources of accumulation. Of this, every Adminifiration, fince 1794 has been fenfible ; but the fame utterly groundlefs charge continues to be repeated. " This promifed participation," fay fome of the petitions, " has " been converted by the Company into repeated claims on the public purfe, and " credit for enormous fums, to fupport their eftablilhoients :" a moft unfounded ftat^ment. The Company have never had occafion to apply for aid to fupport their eftablilhments ; their applications to Parliament have either been in confe- q^uenge of levies -by Goverivnent qo the fcore of participation in the territorial ierenues^ and CHAIRMAN, &c. of The EAST INDIA COMPANY. 5 1 revenues, or for reimburfement of immenfe fiims expended for the State in mili- tary expeditions — funis very tardily acknowledged, and not yet fully paid ; or to enable the Company to meet the transfer of Indian territorial debt to this country, a debt not increafcd by their order, or according to their wiih, though the pe- titions charge the increafe to them, but fanftioned by His Majcfty's GovcrnuiL-nt and by Parliament ; a debt which, every intelligent perfon knows, it never was or can be pofTible, in the nature of things, to difcharge out of the Company's commercial funds, and therefore nioft unjuftly made a ground of accufation againft them. Fourthly, The claim to a full and free Trade, as the right by birth and inhe- ritance of every fubjeft in the realm, and the arguments in favour of extending it to the Outports, are contained under the fourth head. With regard to the general pofition on which the arguments are founded, little need be faid. It is an obvious principle, that men, living in fociety, mul^ fub- mit to the laws of the fociety and to reftraints upon their natural liberty, when the public intereft, in the opinion of the legiflative authority, requires it. The Indian monopoly was at firft e'labUfhed, becaufe it was thought beneficial to the com- mercial interefts of the country. It was long continued on the fame principle ; now it is more a political than a commercial queilion. It may be (hated thus : — whether it be more for the intereft of the nation to maintain the Indian empire, under the fyftem which has hitherto preferved and improved it, — a fyftem greatly relaxed as to the trade with India, and which has alfo preferved a lucrative commercial intercourfa with China, — or to adopt a fyftem of entirely free com- mercial communication with both countries at the hazard of lofmg that empire and the China trade, or of rendering the tranquillity and retention of the one, and the enjoyment of the other, lefs fecurc. Until this qneftion, or one reduced to ftill lower terms, namely, whether it would be prudent, for the fake of the obj.e6t: in yiew, to run any hazard where the ftake is fo great, is folvcd in favour of an open trade, the plea of natural inherent right has no title to be heard. No fuch folution has yet been produced. It has, on the contrary, been fliewn, that dangers and difadvantages, both in the Eaft and at home, would attend the opening of the Trade ; but it has not been fliewn, that any meafures which have been fuggefted as preventives, would be at all eflectual. No adequate provifion, therefore, againft thofe dangers and difadvantages is yet propofed ; hence it may fairly be prefumed, none has been found. But, until fuch a remedy is difco- vered, the prefent fyftem ought not to be overturned. The opening ol the Out- ports would, according to the unanfwered reafonings of the Court, have this effect. The opening of a part of the Outports would lead to the fame effeft, though, perhaps, by a fomewhat flower progrefs ; for it would immediately re- duce and derange the periodical public fales of the Company, which is the mafter wheel in the mechanifm of their Import Trade. His Majefty's Minifters, in not propofing to open all the Outports, botli admit the contingency of danger from fuch a meafure, and fet afide the argument of univerfal uiherent right ; but it remains utterly unproved, that danger would not refult from opening even a few Outports, efpecially if the Export Trade is allowed to all J and that after any had been fo privileged, which would be in effecl a monopoly againft the reft, thofe others would never be quiet, until they alfo were admitted ; fo that the whole of the danger will follow from the firft flep, and ought to be contemplated accordingly. It may juft be obferved, that the quality afcribed to certain coun- tries, as giving the petitioners more particularly a right to a free Trade with them; the quality of having been " acquired and maintained by the efforts and valour " of the forces of His Majefty," properly appertains neither to Hindoftan nor to China, and that the ta-ritories held by the Company were acquired by undue ^xclufive powers and privileges received from the legiflature. Upon the fame ground of natural inherent right, and of the necefTity of the €xercife of that right, as effential to the maintenance of the manufactures and commercial profperity of the country, is placed the clainr of the Outports to a iiree importation of goods from India and China. Under the fourth bead, there- fore, 5 a CORRESPONDENCE ktic-een PRESIDENT of INDIA BOARD fore, your Committee have colleiSVed the ftrength of the arguments contained in the petirions in. fupport of this claim ; arguments to which the Prefident of the India Board was pleafed to refer the Court. The argument of inherent right has been ah-eady confidered : the other arguments, which maybe given in the words of the Giafgow petition, are, " That the confinement of the Indian imports to *' the port of London would be unnecefl'ary, impolitic, and unjult : unneceffary " becaufe, firft, the ideal difficulty of collefting the taxes is fully obviated, by the ." known fafety with which the duties are levied on articles of Wefl; Indian and " American produce : and fecondly, becaufe the duties may be collefted with " greater eafe and lefs lofs from pilferage in the Outports ; unjuft, becaufe every '• mercantile place in the kingdom is entitled to the fame privileges ; and im- '' politic, becaufe the fuperior economy and difpatch that prevail at the Outports " are requifite lo fecure an equality with foreign nationSi" On the fecond of thefe three arguments it may be obferved, that the claim of all the Outpoi-ts to a participation in the Indian trade, as matter of equal right, (lands upon the fame principle as the claim 6f all individuals, which has jufc been confidered, and muft be determined in the fame way and order; it therefore demands no farther notice here. If it fliall be judged, that no larger inrereft than that of the Outports oppofes their claim, then, and then only, will it be entitled to attention. The firft argument is ; the known fafety, and greater facility, with which duties are collected at the Outports Whether that facility be, in fact, greater or not, it is needlefs to examine. If it were indeed fo, it would ftill leave undecided a much more important queltion ; the danger of fmuggling. On that danger the Court have enlarged in their Letters to the Prefident of the India Board, of the 13th January 1809, and 15th and 29th of April 181 2. Your Committee can- not but hope, that thefe Letters will be perufed by Members of Parliament, as their contents are material to a juft confideration of the fubjeft. The Court have refpeftfully ftated to Lord Buckinghamihire, that no adequate anfwer has been given to thefe letters : his Lordfhip, in addition to what he has himfelf faid, has referred the Court to the petitions. The argument jufl: quoted, is the mofl dired and indeed the only one to the point v.'hich your Committee have difcovered in all the petitions. But it does not meet the main objections of the Court, taken frorri the danger of finuggling ; they remain untouched and unnoticed. Thofe dangers were contemplated, upon the fuppofition, that only the opening of the Indian trade v/as in queftion ; and in this way your Committee will now eonfider them, referving to a future article fome remarks on the ftill greater danger of fmuggling, which would follow, if the China monopoly were abo- Hfhed ; and which would be experienced, whilft our merchants were permitted to Vifit China at all. It is from the facilities of fmuggling tea, that fliips cleared out for or from India, would find in the Eaftern Iflands, in the voyage home, and on the coafts of Scotland and Ireland, that the Court have apprehended the chief dangers would arife. In the Eaftern lilands there are no Cuftom-houfes, clear- ances, or manifefts. There are great ranges of coafts in the remoter parts of the United Kingdom, where there is no Cuftom-houfe : bulk might be broken, and no detedion follow where the fiiip fliould afterwards be regularly entered. It does not in the leaft follow, that thefe evils might not happen, though it fliould be true, that rhe taxes on Weft Indian and American commodities are fafely col- lefted ; for thefe comm.odities come generally in very large unwieldy cafks or packages, are, in proportion to their bulk, of much lefs value than Tea, which is alfo packed in fmall portable cafes, and they come from countries abounding with regular Cuftom-houfes, whence they cannot fail without manifefts and clear- ances ; yet with all thefe fafeguards, your Committee are credibly informed, that th? Am.erlcans find means to fmiiggle Tea into this country. But, even fuppofing fhips came direft to an Outport, without having broken bulk, what comparifor^ is there between the collection of duties at any port, provincial or metropolitan, and the collection of tea duties with perfedl certainty, facility, and a very trifling expenfe, at the India Houfe ? The objeQions ftated at large in the Court's letters, your Committee b.eg leave to repeat,, remain without any found anfwer j and it is and CHAIRMAN, Sec. of The EAST INDIA COMPANY. ^i, Is extremely material to obfervc, tliat file opinions maintaiiirtl in them, on this fubjeft, are corroborated by the reports which the Boards of Cullonis and Excife have made to His Majelly's Minilters, refpcding the danger that would arife to the revenue from the adoption of the new fyltem j a danger v.hich, in their judgment, would be inevitable. The third argument urged in the petitions, is taken from the necefiity of fe- curing an equality with foreigJi nations, which, it is faid, the fuperior economy and difpatch at the Outports will do. If this alleged advantage of the Outport.s were admitted, it would, in the opinion of your Committee, weigh but little in the general queflion. The diiterence cannot be mat .-rial in itfclf, and its effed Uttle, in a trade fo unlikely to become of any magnitude. There are, however, other confiderations of great weight belonging to the quef- tlon of opening the Outports, to which the petitions do not advert. One of thefe is, the immcnfe interelts which the port of London, with all its defcriptions of merchants, tradefmen, tea' dealers, factors, brokers, dyers, packers, callen- derers, infpeclors, labourers, fliip builders, fliip chandlers, rope makers, fliip owners, manners, and all their train of eltabliHuncuts, warehoufes, wharfs, docks, yards, premifes, fliipping, formed in the courfe of two centuries, in which the Company's privilege, and the law of the land, have made the metropolis the fole feat of the Ealfern commerce ; all thefe interells, v>'iih the Corporation of London, have reprefented to Parliament, the ruin in which they would be involved by the opening of the trade to the Outports. The Cornnany's periodical public fales, on which fo much of the order and fuccefs of thtir bufmefs depend, would b^ interfered v/ith, and their very large property in warehoufes ami other buildings deteriorated ; in fhort, all the inftitutions, public and private, of the capital, for carrying on the EaRern trade, would be fhattercd or broken down. The removal of the trade would effeft this, although the new Ipeculations and enterprizes would eftablifh nothing equivalent in other places, far lefs compenfate t! i: lofles of the fupplanted parties. Your Committee cannot go into this fubjed fufficieutly to give a jufl fenfe of the magnitude and importance of it: but they may fe-- rioufly afk — Is the cafe equal between the people of London and thofe of the Out-ports ? Would it be right to expofe to privation and ruin one fet, by with- drawing from them what thev have long enjoyed, in order to add to the com- fortable provifion the other fet already poflefs ; and this only to lave them the flight inconvenience of bringing their Indian imports to the port of London. Let it never be forgotten too, that the Indian people are concerned in this queftion ; the Court have already in their letters to Lord Melville and Lord Buck- inghamfhire flated their apprehenfions, that the opening of the Outports to im- ports from India, might increafe the refort of European adventurers to India. It has been advanced in return from fome quarters, that the police of India is fo excellent, as to obviate every danger of this kind : your Committee are forry to obferve, that they find in the records of the Bengal government, informations concerning the police, which do not warrant them to conclude quite fo favour- ably of it ; for in fact, with all the progrelTive improvements in the fyflem of the government there, they have not yet been able to bring the pohce into a flate of perfect efficiency. The Fifth Report of the Committee of the Houfe of Com- mons has entered much into this lubjcft, and one quotation from the conclufion of it, may fuffice to juftify this obfcrvation : — " It does not, therefore, appear to " have been from any want of information in regard to the imperfect ftates of " the police, that the Government was unable to prevent its becoming worfe ; *' but rather, as your Committee fliould fuppofe, from the difficulties which pre- " fenteu themfelves to the application of an efficacious remedy." Fifthly, On the China monopoly. Befides the connexion already noticed of the China monopoly with the policy of our Indian fyltem, the uniting of this trade under one head is neceflary, both on account of the extreme caution re- quired in the conduct of our intercourfe with fo jealous and inflexible a govern- jnent as the Chinefe, and of the fecuritv of the large revenue derived by the (32.) O ' Britifli 54 COR RESPONDENCE hekoean PRESIDENT of INDIA BOARD Brlrifh public from the branch of commerce. The habits of the Chinefe nation ar3 known to be as fixed as tiicy are peculiar ; their government is a pure defpot- ifm,- jealous of the fmalleft tendency to infubordination or innovation ; the people are i^uided by a principle of implicit fubmiflion to their faperiors ; and both government and people hold all diforderly conduct in the utmofc abhorrence. FojTfign trade is held in low eflimation, and the commerce which Europeans have been permitted to carry on is fubjefted to manifold and rigorous reflriftions, intendea to prevent the intermixture of ftrangers with the natives, and to guard . againft their entrance into the interior ef the country, and hazard of their be- coming, in any way, troublefome to the government. The fiiips of European nations are allov.'ed to refort to only one port in an empire of fo vaft extent ; and there even, no ftranger is permitted a conftant refidence without credentials from the fovereign of the ftate to v/hich he belongs. When a faftory is efta- biifhed, for which one fpot is fixed, the factors are confined to very narrow precinfts around it ; they dare not make an excurfion beyond thofe precinfts into the open fields, nor enter into the clofely adjoining city of Canton. The go- vernment of China does not allow to its own fubjects freedom of trade, or unre- flrained intercourfe with foreigners : both are interdifted ; and the relfriftions impofed, together with the fumptuary laws in force, oppofe the ftrongefl: obftacles to any great extenfion of the fale of our manufactures among the Chineie. The trade with Europeans is given in monopoly to a company of ten or twelve • Chinefe merchants, ftyled the Hong ; and thefe merchants become refponfibie to the government for the conduft of the foreigners with whom they deal. After the fhips are difpatched lor the feafon, the factors are obliged to witlidraw to the Ifland of Macao, a low Portuguefe fettlement, till the fliips of next year arrive. And with refpeA to the fliips, they are, whilil in harbour, under the controul of the Chinefe officers, who are empowered by law to take the cuflody of their guns. And if, in the intercourfes, and consequent frays, between the natives and our Englifli failors, one of the former happens to meet his death, by accident, from an unknown hand, it may produce, the mod ferious confequences ;, for the Chi- nefe government has been known, in fuch a cafe, to claim the life of an Euro- pean in expiation ; and for an occurrence like this the Company's eftabhfhment is held refponfibie, and their trade liable to be flopped. With a government fo abfolute in requiring implicit conformity to its peculiar law and ufages, and fo marlced with pride, fufpicion, and defpotilm, Britifli fubjects have the utmoft dif- ficulty to act ; and the Company's agents frequently fubmit to caprices and hu- miliations, to which the honour of a Sovereign would not allow any reprefentative of his to yield. Is it therefore in the leaft probable, that the Chinefe would tolerate the indifcriminate ingrefs of numberlefs unconnefted, unaccredited Eu- ropeans ? or, if they did give them admiffion, that their multiplied, irregular, deiultory vifits and intercourfes with the natives, would not be attended with diforders ; with violations of Chinefe ufages (with fmuggling for inftance. a high offence in China), which would foon end in the utter expulfion and exclufion of thefe ftrangers, or in fuch injuflice and humiliating punifliments, on the part of the Chinefe government, as might call on the honour of this country to demand redrefs ? The fplendid embaify which His Majefty fent by Lord Macartney to the Emperor of China, had, with all its impofing attendant circumftances, and all the fkilful addrefs of that nobleman, no influence to induce the Chinefe go- vernment to relax from their rigid reftridtions on tile commerce and intercourfe of Britifli fubje£ts with its territories ; and it may be fafely concluded, that all which that government mufl have lince heard refpefting the revolutions in Eu- rope, will make it adhere fiill more obllinately to its jealous precautionary fylteni. To all thefe probable dangers, the petitioners oppofe nothing but the honourable charadter of Britons, and the example of the American adventurers to China. Frail dependence ! — Britiih failors carry to every fhore their habits of excefs, as is too often found in the Company's fliips, notvv^ith Handing the flrifl: difcipline eflabliftied in them. The American feamen are a much more fober and quiet clafs of people, and the adventurers of that nation have derived in China a fanc- tion I 0nd CHAIRMAN, &c. oflht EAST INDIA COMPANY. S5 tlon from the pre-crtablifliment and credit of the Englifli faflory, to which, from their language and manners, they appeared to be related. It is, hideed, by the prudent refpeflable conduft of the Company's reprefentatives there, in the ma- nagement of their own truft, and the controul cxercifed by them over other Britifli fubjects ; it is by this means, and by the extent and regularity of the Company's dealings ; by their probity now fo famed, as to pafs the bales which have their mark, without infpcftion, through the Chinefe empire, that this jea- lous and fuperciiious people have been at length greatly coik, :liated : but the Company's eftablifliment could not, on the principles new propofed, retain either its credit or pofition. To expofe a trade of fuch value and importance to the nation and the revenue, to hazards fo great ; to break down the prefent fyftem, with the immenfe eftablillimenls and property connedted with it, particularly the China fleet of the Company, a thing unparalleled in the commercial annals of the world, would therefore, in every view, commercial, financial, and political, be utterly unwifc ; and if this defperate rifk were run, further evils would av.ait the new fyltem at home. Upon the fuppolition of a general refort of Britiili iTiips to Ciiina, how would it be pofiible to prevent the fmuggling of Tea on the coalls of England, Scotland, and Ireland, with the facihty which exifts of receiving that article on board in many of the Eaftern Iflands, where there are no Cullom-houfes, and with the temptation of evading a duty of ninety-five per cent, at home ? The petitions offer not the leafl fatisfattion on this point ; a point highly interefting, as has already appeared, if the queftiou were only about opening the Indian trade to the Outports ; but yet more inte- refHng in refpeft to the propofal for laying open the China trade, which is, at the beft, a propofal to incur the moft imminent rifk of lofing that trade, and the great revenue arifmg from it, merely in order to change the hands through which it fhall pafs ; for fupiwfing it to be prcfcrved to the nation, there is no reafonabie ground to think that it could be increafed, becaufe the Chinefe now take our Woollens onlj in barter for Tea, and- the prefent importations of Tea are as large as the ccuntry reqtiircs. Sixthly, On the complaints of the fuperior advantages enjoyed by neutrals, particularly the Americans, in the Indian trade. The veffels of the American States fir it appeared in the Indian feas about the year 1785. At that time feveral European nations poiifefTed fettlements on the continent of India, in vn-tiie of grants from the native fovereigns, recognifed by this country, after the Company obtained territorial dominion. It had not then been difputed, that thofe fettle- ments might receive other European flags as well as their own (though the Com- pany have within thefe few years properly held, that the original grant gave a right ot trade only for the fhips of the nation to whom the grant was made) ; therefore the Bengal government thought it politic to admit the American fliips into the Britifli ports, rather than oblige them-, by refiifal, to carry their cuftom to the French, Dutch, and Danes. This was, however, merely a gratuitous li- cence, revokable at pleafure. But in 1794, the government of this country, induced by the polincal circumflances of the time, gave to the United States, by treaty, a right to a direft trade between their own ports and thofe of Bridfli India, on the terms of the mofl: favoured nation; and in 1797 the privilege of free ingrefs to the Britifli ports in India was conferred on all friendly nadons. By the long condnuance of the: war which followed the French revolution, thefe conceflions proved of unforcfeen high advantage to the fubjetis of the American Stat-es, The fettlements on the Indian continent, of the French, and of the Dutch and Danes, who had fallen under French influence, were fucceflively captured by the Englifli. The Portuguefe and Americans were then the only neutrals who frequented the Indian feas ; and the troubles of Portugal at length left the neutral trade very much in the hands of the Americans, who fucceeded in elTeft to the excluded traders of foreign Europe, and fupplied their wants, as well as thofe of the increafing population of the United States, and the demands of Spanifii America. The fubjefts of thofe States, undoubtedly, abufed the privi- leges conceded to them by His Majefly's Government, in the Indian trade ; they 8 were 56 CORRESrONDENCE bctv}cen PRESIDENT of INDLi BO;\RD Tvere by treaty reflncted to a direct trade between America and India ; but they "vifited the ports of foreign Europe going and returning, and became the general carriers. They even fupplied our own Weft Indian and North American co- lonies witli Enilern commodities, and they entered aftlvely into the China trade, deriving a facihty of admiftion there, from being viewed as a caft of Er.ghflmien ; perhaps alio, a fanftion from the countenance of the Britifli cfta- bhfliment there. For feveral years after the appearance of the Americans in the Indian Seas, they were, no doubt, affifted by Britifn capital ; partly by that which wanted a remittance to Europe, but to no very great amount. They exported from Bengal in ten years, through which their trade on the whole was confiderably progrtf- five, and which ended with 1804-5, goods to the amount of ficca rupees 3,71,50,029 (^4,643,575), or ^464,357 per annum ; and they imported, to the amount of ficca rupees 3,12,48,544 (^''3,906,068), or ^390,606 per aimum. The excefs of exports above the imports, being in ten years ^737,507, or ^£^73,750 per annum, may be fuppofed to be the property ot Britifli relidents in Bengal, remitted by the way of America. Whether they were furniflied with Britifh capital from London, and to what amount, it is difficult to afcertain ; but it appears evident, that as they proceeded in the trade, their imports to Bengal more nearly equalled their exports, which fliews they were better able to do with- out Indo-Britifh afliftance, and probably it was the fame as to European* afhflancc. Upon this trade, however ofTenfive to our private merchants, and in fome vievi'S alfo to the Company, it may be juftly obferved, that it was favourable to Britifli India. It carried feafonable and large fupplies of bullion to that country, from year to year ; not above a feventh of its imports being in goods, and thefc chiefly wines and other articles for the confumption of Europeans ; it alfo carried the commodities of India to foreign Europe, to Spanilh America, and other places to vvhich Britilh (hips, on account of the war, could have no accefs ; and when, by the policy and hicreafing power of Buonaparte, the produce of this country and its colonies were nearly Ihut out from the Continent, the Americans ftill conti- nued to introduce the commodities of India there, and with the returns of their adventures they probably purchafed Englifli manufactures to carry to the Ame- rican continent ; io that this country alfo eventually benefited by their Indian trade ; and, however much their large participation of that trade became a matter a33 4,882,836 Exports - ditto - 6,901,269 35,696 6,916,965 5>i07'3'8 9.625 5.ii7>443 belligerents aiid CHAIRMAN, &c. cf The EAST INDIA COMPANY. sj belligerents are fliut out, enables them to navigate more cheaply, eafily and expe- ditioufly ; and it may be taken as a certainty, that whenever war ceafcs, all their advantages will ceafe with it, and their power of entering into competition with us in the trade of our own fettlemcnts, be very greatly reduced. The cry that has been raifed and continued againft the Company on this account, confelFedly with the view of obtaining a general admiflion of Indian fhips into England, is therefore altogether unfair. If a circuitous trade in Indian commodities, from Biitainto foreign parts, has been prevented by the rivalfhip of the Americans, the Company have fuffered as well as individuals. They have fuffcrcd alfo by the fmuggling of Eaflern articles from America, into our Well Indian and North American colonies. They were anxious to check, the abufes of the treaty of 179^., and when it expired, they obtained the confent of His Majcfly's miniflers to impofe a double duty on the neutral trade with India, which then applied almofi; folely to the Americans ; but if the complaints againft the rivalfnip cf the Americans in the Indian trade had been well founded, what was the natural and proper remedy ? Was it, that the Company, part of whofe own trade had, during the war, paffed into American hands, fliould facrifice the rcfl of their exclufive privileges, and, by the extinc?lion of them, endanger the territorial pofredions ? Or was it not obvioufly, that the Americans fhould be excluded from a trade fuppofed to be carried on ac the expenfe of Great Britain ? Yet this cry is flill unaccountably kept up, even v^'hen v.e are at war with America, and the flag of the United States dares not be feen in the Indian feas. Nay, it is kept up to injure the caufe of the Company, after they have atlually agreed on enlargements of the trade to England, greater than ever were contemplated, even by the pri- vate merchants of India, before the prefent negotiation ; and, if enlargements could effeft the objeft, more than fufficient to bring the whole Indian trade of the Americans to the port of London. It is fmgular that the party who complains of the large fliare that has been en- groffed by the Americans of the Indian trade, Ihould be the fame party who com- plain alfo of the large fhare which the Americans, in a ftate of neutrality, enjoyed of the Britifh trade between Great Britain and foreign nations. It is well known that previoufly to the rupture between England and the United States, it was urged as a grievance, that though America exported from this country to the amount of twelve millions flerling annually, the country was not benefited to the utmoft poffible extent from this export trade, becaufe the Britifh merchants and manufafturers were, by the intervention of America, deprived of the carrying and of the fecond felling profit upon the manufaclures. America, it was alleged, bought from us to a great extent, and Great Britain was to a certain degree, a gainer to the extent of the American purchafes ; but becaufe America fold our goods at fecond hand (to the Spanifh Americans for example) it has been alleged, that had it not been for the intervention of the North American States, we (hould have fupplied Spanilh America, and in addition to the profits we have received, would have engroffed all the advantage which has accrued to the merchants of the United States from the carrying and circuitous trade. But may it not, on the other hand, be argued, that if the Britifli manufacturers, in an open trade and during a flare of war, have found the alTiftance of Americi necefl'ary to the cir- culation of their own manufaflures, the fame affiftance was wanted by the manu- facturers of India to the circulation of their produdions ; that the large exports from India, as well as the large exports from Great Britain, by the Americans, were owing to their neutral character ; that if the trade between India and Eng- land had been as open as is now contended for, the quantity of Indian goods, circulated through the world, could not have been greater than it has been, under the competition that h?.^ aftually exifled between the merchants of the United States, and the Eafl India Company ; and that a greater fhare in the export trade from India could only have been obtained for the free Britifh traders in one of thele ways, either by America abandoning, or Great Britain returning to her pacific relations with other countries. If a free trade has the virtue that is imputed to it, why, under complete freedom of trade, has this country been rendered tributary to America for a rent to the produce of Britifh induflry .? and C32O P if 58 CORRESPONDENCE bet^.mn PRESIDENT of INDIA BOARD if the pacific relations of flate=; pafs for no account; in fuch a queftioii, whence the conj^a-atulations we fo ofien hear upon what we have gained, and may yet gain, by the rupture with America ?* Seventhly, That the diflrefles of the manufafturers, the exclufion of our trade from the continent of Europe and from North America, its confequent great de- cline and the fupport of the war, require new chaimels of enterprife, and there- fore an open trade. * The followine Ktatcment, which has been receivetl from an intcllitrent merchant who refidcd a number of years in America, (hews the advantages under which the trade of that country was car- ried on, in a Itate of peace. The advantages which Americans, as fhip-owner?, enjoyed in a ftate of neutrality, are obyious ; uot only from their free communication with belligerents, but from oilier caufes. Their firlt rate vefTols do not coft one half what thofe of the fame tonnage built in Britain gene- rally cofl; ; hence the capital employed is one half leis, and one half the infurance is fulficient to cover the property at flake. The premium of infurance of an American neutral from Britain to America, was lefs than half what was given ou an Englilh veiTel for the fame voyage ; on Americans, the premium was from two to two and a half per cent., on Englilh velFels from five to fix per cent. The countervailing duties in America, induced fhippers always to give a preference to American veffels. Goods arriving in America, paid twelve and a half to fif'.een per cent, duties, whilft the fame goods, by a Britifh veflel, not only paid the fame rate of duty, but an additional ten per cent, on the amount of thofe duties, which is one and a quarter to one and a half per cent, increased duty. The freight of goods from America to England, in American bottoms, was never, in the bed times, higher than one fhilling and fixpence per foot ; and many times the whole freight of an home- ward-bound American of three hundred tons (that is to fay, an American fgoing from this country) couid have been had for jCjoo. or £400. The cargoes of three fourths ot Americans homeward, confifted either of crates of ware, fait, or coals ; which are well known to yield but a very finall freight indeed, taking the whole difference betwixt th; purchafe and fale, as freight. The provifioning a fhip in America, did not certainly cofl more than one half thai provifioning the fame fhip in Britain would have colt ; bread at 16s.; beef at 304. to 36 j. ; pork at 45 s. to 50 i. ; rum at 2 s.; I believe will not be more than half the Britifh prices for tlie fame articles; and thefe were the current rates in 1800 to 1805. Upon a calculation of all thefe advantages, it will be found that an American, in war time, could make a faving voyage from any of thefe ports to this country and home, when an Englifh vefTel ■would inevitably have brought her owner into debt ; and that an American could actually import 'roods into the United States from this country, and fell them, at their average wholefale import?,. tion profit, to others as low as a Briiilli merchant could fend them to America in a Britilli (hip, and deliver them over to be Iranfliipped without any profit at all. The American (hips being of a lighter conflrudlion than ours, they fail with at lead one third fewer hands. The following Statement will better ehicidate thefe remarks. An American of 250 tons is em- ployed in a voyage to Britain and back ; her value, as a firll-rate vcffel for that trade, is .i'a.ooo. ; and the voyage occupies five months. A (liip of 230 tons woidd carry 3,000 barrels of flour, at gs. which was the ordinary freight - _ . . £1,350 The average freight home of fuch vefTels could not exceed - - Ooo .€1,950 AMERICAN CHARGES Infurance out and home i/ajOOO at 4I per cent. 8 men 5 months, at £^. Captain and mate, £\o. each 2,400 lbs. bread, at 16 y. Beef, 10 barrels, at 32^. Pork, 10 di). at 50 i. 150 gallons rum Interetl of .t2,ooo. 5 months s. £ s. d. 9S - 200 - 100 - 19 4 — - 16 — — - 25 - 16 17 — - 4' 13 4 J? 5'3 -4 4 BRITISH CHARGES. Infurance out and home, vefTel v due J at ^'4,000. at 9 percent. 11 men five months, at .t'5. Captain and mate 360 lbs. of bread for 14 people 5 months, at 52 s. 13 barrels of beef, at .£''4. 15 do. pork, at 90J. 220 gallons rum, at 5^. Intercll of ^'4,000. 5 months - £ s. d. 360 — — 300 — — 100 — • 57 12 60 — — 67 10 — 55 — «3 6 8 1,083 8 8 Thefe are not to be underflood as the total charges on the voyage, but are thofe which flicw the adrantajjes which Americans have enjoyed. Every and CHAIRMAN, &c. of The EAST INDIA COMPANY. 59 Every Britifli heart niuft I:iment tlie obflruclions to whicli our ctiminerce lias been fubjedled, muft willi fur the removal of all continental excUifions as well as of our diil'erences with America, and that commercial freedom and aftivity may be reftored. It is alfo extremely defirable that new fourccs of trade fliould be difcovered, and natural for thofe who arc now fuflcrin;^ under privations and hardOiips, to catch eagerly at the flattering profpects and promifes fo confidently held out to them from opening the trade with the Eait. But can the Court of Dirciflors, thoroughly convinced as they are, that all fuch expedations are groundlefs and dclufive, — that thofe who (hould art upon them, if the trade were opened, would be fure to experience ruinous Icifs and difappointment, and that the abolition of the Company's commercial privileges would be in eilett the ex- tinftion of the whole of -the prefent Indian fvdem ; — can the Court, with thefe conviclicns, lend themfelves to promote a dangerous deception, already too pre- valent, at the facrifice of fo much individual intereft, and of that public interclt, the' care of which is intruded to them ? If it were, indeed, probable, that by a flow procefs the commercial intercourfe between this country and the Eall could be enlarged, the efiect would be far too diftant to relieve prefent prellures, and the firfl: adventurers be more likely to plunge the trading world into frefh diffi- culties ; as proved lo be the refult of the general rufli into the trade of Buenos Ayres, where it was eafy to fend exports, but difficult to find fale or return. It vvill, perhaps, now be faid, that the trade with Buenos Ayres has become a re- gular one ; but it can be a regular one only to a very limiteJ extent, being, indeed, partly what fubfifted with Lilbon, before it was turned into a different channel ; it may not, in a long time, replace the vafl; fums at firfl lofl there ; anil at any rate, it diiplaced no important fyflem exifling before. From the late very favourabie change in the affairs of Europe, a better profpeft of relief now appears ; from the Eafl, it will be found, that no hope of any can be rationally entertained. Eighthly, That a free Trade to the Eaft would be a fubflitute and cure for all prefent connnercial evils : would open an unbounded field to Britilh manu- fadures, Britifli capital, fkill, enterprife and knowlege, which would not fupply the wants of the vafl population of the Eafl, but create wants where they did not exiil. The praclicabllity of extending, in any great degree, the commerce of this country with the natives of the Eafl, in Exports and Imports, is undoubtedly a viial queilion on the Vv'hole of the difcuftlon refpeding the renewal of the Charter ; for if no iuch exlenlion be indeed pradicable, to what end fliould the prefent fyftem, with all the eflablifliments which have grown out of it, be deftroyed ? The ISritiih merchants appear to entertain the moft extravagant ideas of a new world for com- mercial enterprife ; ideas upon which they are ready to rifle their own property, and to facrifice all the interefls of the exifling Indian fyflem. The Company, backed by the great niafs of Britifh fubjecls now in Europe, who are acquainted with the countries of the Eafl, maintain, in direct oppofition to all fuch imagina- tions, that it is not now poflible greatly to extend among the inhabitants of the Eafl, the confumption of Britifli productions, or in this country, the fale of Afiatic commodities. On the fide of the merchants, there is in truth nothing but a fan- guine theory ; on the fide of the Company, there is the experience of all the nations of Europe for three centuries ; there is the ten:imony of ancient hifcory ; there are the climate, the nature, the ufages, tafles, prejudices, religious and political infliitutions of the Eaftern people. If the difcovery of the paffage by the Cape of Good Hope, and the account of the firfl Europeans feni by that route to the fliores of India, were only jufl; announced to us, fome explanation might be given of the enthufiafm with which the hope of unbounded commerce thither is entertained ; but that, after all the knowledge' which fucceflive ages have afforded upon this fubjed, men of general intelligence and cultivation ihauld, ia oppofition to the ufual courfe of human affairs, adopt the fond idea of entering at once into the enjoyment of a nev/ world of commerce, is a mofl: rt;riking inllancc of cre- dulity, and of tlie power which interclt and imagination united, have to impofe upon 6o CORRESPONDENCE between PRESIDENT of INDIA BOARD upon the underftanding. The theory of Dr. Adam Smith did not anticipate any fuch fudden burft of new commerce when he pronounced that the " Eafl Indies " offered a market for the nianufadures of Europe, greater and more extenfive " than both Europe and America put together." Eminent as Dr. Smith certainly ■was in the fcience of poHtical economy, he was not infallible ; his information re- fpeding India was very defeftive and erroneous ; his prejudices againfc the Eaif India Company extreme, and his prognoftics concerning their Indian Government ■wholly miltaken. In the period wiiich has elapfed, of nearly forty years, fmce he firlt publifhed his work on the IVealtb of Nations, the endeavours ol all Europe and America have made no difcovery of that immenfe market for European ma- nufadures which, he faid, was offered by the Eaft Indies ; yet the fame doftrine feems to be flill in the minds of fome of tlie Petitioners, who made it a ferious charge againfl the Company, that its exports to the immenfe regions of the Eaft do not amount to a fifth of the exports of this country to North America. But as well might it be a matter of charge againfl the merchants of England, that their exports to the great continent of Africa, which contains fo many millions of inhabitants, lefs influenced by religious prejudices, and more inclined by tafte and manners than the people of the Eafl to ufe our productions, do not equal their exports to our remaining American colonies. The reafon is obvious in both cafes ; all the North American colonics are the fiime people as ourfelves ; live under a climate nearly fimilar, and have a variety of commodities valuable to us, to ex- change : the Africans live under a tropical fun, are poor, and have little means of purchafing even fuch of our manufactures as they would like to ufe. It has been already noticed that the Americans have been in the habit of carrying our commodities into other countries. A profound obferver of human affairs, thePrefident Montefquieu, had, before the time of Dr. Smith, who, however, overlooks his opinion, realoneJ more agree- ably to nature and experience on this fubjeil. '-Although," fays he, " commerce *' be liable to great revolutions, it may happen that certain phyfical caufes, fucii " as the quahty of foil and climate, fhall for ever fix its charafter. In the cora- *' merce which we carry on with India, in modern times, the export of money " thither is indifpenfable. The Romans carried to India, every year, about fifty " miWions oi frfferces. That money, as ours now is, was exchanged for goods, *' which they brought back to the Weil. Every nation which has traded to India ■•' has uniformly carried the precious metals thither, and brought back goods in *' return. Nature herfelf produces this effeft. The Indians have their aits, which *' are adapted to their manner of life. Our wants iu-e elfentially different from *' theirs ; and what is luxury to us, never can be fo to thetn. Their cdmate neither " requires nor permits the ufe of almoft any of our commodities. Accuflomed '" to go almoft naked, the country furniflics them with the fcauty raiments they " wear; and their religion, to which thty are in abfolute lubjedion, infills into " them an averfion to that fort of food which we confume ; they, therefore, need *' nothing from us but our metals, which are the iigns of value, and for which " they give in return, the merchandize that their frugality, and the nature of the " country, fupply in abundance. Ancient authors, who have writren upon India, " reprel'ent the country precifely fuch as we now find it, as to police, to m-anners, " and to morals. India always has been, and India always will be, what it " now is ; and ihofe who trade to India, will carry money thither, and bring '* none back." As the Court have, in their Letter of the 13th January 1809, to the Prefident jof the India Buard, given the fame views and in fome detail, on this fubjedf, not deriving their opinion from any fingle authority, but from the broad page of hif- tory and practice, it is unneceffary for your Committee again to enlarge upon it : but may not the attention of the manufafturers of woollens, metals, cctton fabrics, and potteries, be ftill called to the habits of the Indian people, the bulk of whom live all their days upon rice, and go only half covered with a flight cotton cloth ; the rice and cotton both produced by their own foil ? The earnings of the common labouring claffes., and confequently their expenceS;, may be eftimated, on an average. avd CHAIRMAN, .\c. -/ The EAST INDIA CC^IMPANY. (n average, not to exceed* j^4. los. per man, per annum. They arc indolent by nature, frugal by habit, under in;mi(old religious rcllridions : What demand oi" the inanufaChires from Europe is to be expefted from thefe ? Of the better claffcs few are rich, unlefs thofe conneded with Europeans; and even t/jrfc, during a courfe of nearly three centuries, in which they have lived in European fetllements, have adopted none of our tafles or falhions ; unkfs, perhaps, in a few articles of jewellery and hardware, looking-glafles, and carriages, with the ufe of a mantle of broad-cloth in the cold feafon. As to the North of India, though the climatt- there be lefs diflimilar to ours, the people are extremely fo ; and in poor ill- governed countries, where property is infecure and concealed, what hope can there be of a vent for fireign luxuries ? The perfons who now imagine that region to prefent a great field for commerce, have no conception of the ditliculty of carry- ing goods there from the fea ; the delays, expence, and infecurity that muft be experienced, when the boundaries of the Company's Government are paflfcd ; and in finding and bringing back returns, if the European commodities could be dif- pofed of. With refpect to China, it is not denied tiiat it might, in all probability, take off many of our manufaclures, if the Chinefe Government would allow the free dilfemination of them. I'he jealous reftridions of that Government, how- ever, which, though they have been already ftated, it may be proper to notice again here, prevent their own fubjeds in general from any de^dings with Euro- peans ; and it has been feen, that the magnificent ftyle of Lord Macartney's emhaffy, which befpoke the grandeur of the Britifli Sovereign, with the refined diplomatic talents of that nobleman, which even ifruck the Chinefe Courtiers, were incapable of moving the Government to depart in the fmalleft degree from its ellablilhed policy. If inftead of the regulated, long experienced organ for European trade, the Company's Canton eftabhlhment, under whole refpedability, in fad, the Americans were admitted, a fwarm of unconneded private traders weie to be let loofe upon that country, it is altogether probable, that the Chinefe would either iliut their doors entirely upon them, or contrad even the prelcat narrow entrance. If fo many proofs of want of knowledge on Indian fubjeds did not crowd on your Committee, they might cxprefs furprife at finding any perfons flill fo unin- formed, as to hold up the trade carried on by individuals in the time of Cromwell as gahiful to the parties, and ufeful to the nation. The fad is now afcertained to have been notorioufly otherwife. The competition of the traders led them to underfell their exports in India and their imports in England : The Public, indeed, for a little time, got Indian goods remarkably cheap, but the adventurer could not go on ; and Cromwell, induced by the reprefentations made to him, in which leveral of thofe very adventurers joined, reftored the Company, in order tofave the Indian trade to the nation. Parliament is now told by the Petitioners, that the Private Trade, to which in- dividuals were admitted by the Ad of 1793, enlarged by the arrangement of 1802, has fucceeded, and produced a profit, even whilll the Company have been trading to a lofs. The Court have very fubftantial reafons to believe, that although fomc arncles of Private Trade may at certain times have fold to a profit, yet that large importations of other articles, both into India and into England, have repeatedly fold to a lofs, or have remained long on hand for want of lale. The nature of this trade fhould be confidered ; the numerous commanders and officers of the Company's fliips (a very fuperior clafs of nautical men) have no adequate provifion from dired pecuniary allowances ; their compenfation has been in the privilege of trade, and a certain allowance of tonnage, freight free. This has generally made them traders ; and as they are to look to trade for their emolument, (for but tew, comparatively, make money by pailengers,) they con- * In a late ftatidical account of Dinagepore, a province of Bengal, there are ftatementj of tlie nrnual expenfcs of different clafTes of fociety ; and among them, one of the expcnfes of a labouring man with a wife and two children. The amount is only Ritjiees 2;. 10. 1 1. or near .t3 per annum ; being at the rate ot fifteen (hillings per head. The article of clothing, for this family of four perfons, ie only fix {hillings per anuum. (3?.) Q tinued 62 CORRESPONDENCE between PRESIDENT c/ INDIA BOARD tinued to adventure, though often with little fuccefs ; and your Committee are affured, that though they pay no freight nor commiffion, being tl.elr own agenrs, they ftill find it, on the whole, a precarious unproductive bufinel's. Now, if thefe men do not fucceed, it can hardly be expefted that thof<; who have freight and commiflion to pay can fare better. But it -will be faid that other individuals do, neverthelefs, embark in this trade. To this it is to be ahfwered, that the manufacturers of Indigo iu Bengal, (an ar- ticle originally promoted and always foflered by the Company,) generally fcnt their produce to England ; and this is a matter of necefiity ; becaufe the great bulk of the article cannot otherwife be difpofed of. Again, there is a certain annual amount of acquifition by Europeans in India ; and as this, (doubtlefs a large amount in all,) is in one way or another to be remitted to England, merchants in India may find their account tolerably well in taking up fuch money in India ; in- verting it in goods, and granting bills, at a rate favour ble to the drawer, payable from the fales in this country. A fort of new tranfit capital ariles in this way ■every year, and men may be tempted, occafionally, to feek to make an advantage of it, who would not regularly fix a capital of their own in the trade. There is alfo a third fort of trade Irom India, which men of large capital fpeculate in when favourable occafions feem to offer ; and in this way fometiraes cotton piece goods, fometimes cotton wool, fometimes indigo and raw filk have been adventured in- But your Committee fuppofe it to be an undilputed faft, that thefe larger adven- tures have repeatedly been attended with heavy loffes to individuals, particularly the very great importations of piece goods, exceeding in value two millions fler- ling in 1802 ; the large importations of Cotton, and even of Indigo, fince that time ; and what may be fufficiently decifive on this head is, that very large quanti- ties of thofe have remained long in the Company's warehoufes without a faie, or uncleared after fale. The following abflract account will fufficiently exhibit thefe fads: Value of PRIVATE GOODS fom India, remaining in the Company's Warehoufes, On I ft January 1809 1810 1811 181 2 1813 Of the Sold Goods remaining in Warehoufes ift January 1813. 246 Bales Cotton Wool have been in Warehoufe ten years - .t'2,460 112 - Do. ... five - - 1,120 6, Coo - Do. - - four . . 6,600 30,000 - Do. - - three . 300,000 6,000 - Do. - - two - - 58,930 Sold. Unfold. Tot.il. £ 1.576,185 1,370,958 2.513. 761 2,547,668 2,411,259 £ 81 5,000 1,057,760 IjOOJ,000 1,002,932 1,008,000 £ 2,391,185 2,428,718 3,518,761 3,550,600 3.4 '9.259 42,958 Bales Cotton Wool, value - 71 Chefts 722 - 424 - 23a - .-5,12 1 of I. Do. Do. Do. Do. digo remaining feven ye fix five four three - 1.593 - 9,080 Do. Do. - - two one 4,82 s 49,096 28,83* 15,640 358,228 io8,,3i4 613,838 £ 428,519 17,241 Chefts Indigo, value . - . . .€1,178,786 1,607,296 Piece Goods, imported in iSiOj, 1804, and 1S05. Remained i.T Warehoufes in 1809 - - A^ 276,784 Do. - iSio - . 153,891 Do. - i8u - - 132,094 But it will ftill be faid, the Private Trade between Europe and India has greatly increafed fince the enlargement of 1793 was granted. To ami CHAIRINUN, c^c. c/The LAS I INDIA COMPANY. c;, To explain this it is to be reintmbcreil, firfi, that as aheady ilarcd, the com- manders and ofiicers of the Compan) 's iliips, are in a manner obh'ged to be tra- ders, and that they have greatly increafed in number fince 1793: they are forced to carry out goods, and therefore to bring goods bac!; ; becaiife in gohral fpecie would be a lofing remittance. Secondly, that the number of Kuropcans in India has been very greatly increafed in India fince 1793. Kvery clafs has increafed : the civil, miliravy, and medical lervants of the Company ; the King's Troops, from a few regiments to twenty thonfand men ; the naval lervanis of the Crown ; ladies, lawyers, free merchants, free mariners, and the mixed race of European dei'cent, now become a great multitude, who imitate, as far as they can, the talliions of their fathers. For all thefe delci iptions of pirfons, every thing required for ufe or luxury is fent from this country-: thus the exports are ncceflarily en- hanced ; and exports being made, returns for them, in the commodities of the country, become necelTary, v/hcther they are fure to anfwer or not. A brief view of the ftate cf the Private Trade between England and India may here be given from the Indian regifters of external commerce, commencing with 1795-6, when the A£b of 1793 began to operate in India, to the year i3io-i i. But it is to be remarked, that only the Bengal regilters commence in 1795-6 : thofe for Madras and Bombay not till 1802-3. Statement of the PRIVATF. TRADE beuvreii LONDON and BENGAL, from the year i79j-6 to 1801-2, both years inclufive. EXPORTS IMPORTS INTO BENGAL. from BENGAL. MerciianiJize. j Bullion. 'I'otal. Merchandize. S» R'. S^ R«. S'' R''. S' R\ 1795-6 17,91,623 4.81.538 22,73,161 84,08,800 1796-7 15^49,906 2,33^°9'' 17,83,002 50,79,310 1797-8 11,^8,04.3 3.+fJ. 176 15.J4.2-9 69,71,529 I79S-9 10,13,105 7,30,209 17.43.314 41.07,834 1799-1800 31,50,696 16,36,405 47. 87. lot 67,66,649 1800-1801 40,98,360 3,74.112 44.72.472 ^4,87,336 1801-1802 36,51,650 3,24,019 39,75,669 1,31,97,430 1,64,43,383 41.25.555 2,05,68,938 5,3.>i8,878 Statenu-nt of the PRIVATE TRADE between LONDON and BRITISH INDIA, from the year 1802-3 ^" 1810-11, both years inclufive. IMPORTS. EXPORTS Stores aiiJ Murchaiidize. Bullion. Total. A'lerchandize. Bullion. Total. Bengal, ill nine years, "j from 1802-3 r to 1810-1 1 J Madras Bombay- 8= R^ 3.35.33.4-13 1,14,96,21s 1.48,03,575 S-' R'. 52,19,768 5=,t 7.839 29,65,079 8' R'. 3.87.53.2" 1,65,14,057 1,77,68,65:, S» R». 7.62,87,574 93.72,303 93. '8,775 S ' R^ 2,540 5.867 53.644 S-> R«. 7,62,90,1 li) 93.78.170 93,72-<'9 Total 5.98.33,236 1,32,02,686 7,30,35,922 9,49,78,653 62,051 9,50,40,70,7 This is the comparative ftatc of the Private Trade with Bengal and India, in former periods, beginning with 1795-6, and at the prefent time ; but the increafe is by no means to be conceived as merely the refult of the enlargement given by the Aft of 1793, or afterwards. It is (let it be again ob erved; niuit materially to be afcribed to the increafe in the number of the Company's comm-mdei-s and offi- cers, to the necefiity of making returns in goods from India for their exports, to the great increafe of Europeans and their defcendants in India, to the vaft increafe In the culture of indigo, cherifhed by the Company, and permitted to come in their fhips before the Act of 179J ; and wliat the enlargements of that Ad, and fublequeat 54 CORRESPONDENCE between PRESIDENT of INDIA BOARD fubfequent meafures have opened the way for, has been occafional large fpecula- tion in cotton, piece goods, raw cotton, and indij^o ; which fpeculations have more often failed than fucceeded. Bat the great co}aclufion to be derived from the ac- count of the trade fince 1793, is this ; in all the period of nearly twenty years, from that tinie to the prefent, in which, undoubtedly, facilities and enlargements never enjoyed before, have been given for private enterprize and adventure, in which the Private Trade has confiderably increafed, and on the whole a very ample experiment has been made, not one new article for the confumption of the natives of India has been exported; and little perceivable ditTerence in the few arti- cles of metals and woollens, of which they participated before. This is a very remarkable faft, and ought to make a deep imprellion on all perfons who in any way interefl: themfelves in this fubject. Let us not hear of that unfair charge fu often repeated, that the Company's refliridions have prevented perfons from avail- ing themfelves of the privilege held out by public regulations. Would the com- manders and officers not reflrained by high freight, or any uncertainty of getting tonnage, not have carried out articles for the ufe of the natives, if they had found that any fuch were faleable ? Would not European refidents in India, keen merchants, and acquainted with the difpofitions and taftes of the natives, have commiffioned for fuch articles, if they had feen any vent for them ? Would not native merchants, who buy and fell European commodities, have recommended the importation of things for the natives, if they had feen any chance of a fale ? Yet of 54,000 tons allotted for the Private Trade fince 1793, only 21,806 tons have been aclually ufed by private merchants, and thcfe filled wholly with com- modities for the ufe of Europeans. On the whole then, this may be pronounced a decifive experiment, a decifive proof that there is no opening, nor any material opening to be expefted, for the fale of European articles for the ufe of the natives of India. Of the Import Trade from India on private account, fince 1 793, after what has already been faid, it may be fufficient to prefent the following Abltracl : — IMPORTS FTIOM INDIA IN PRIVILEGE TRADE. 1793-4 - Piece Guods. Raw Silk. Cotton Wool. Indigj. Sv.gar. Saltpetre. Pepper. Drugs. A!l other Articles. Tcial. £ 83,439 34,938 £ X ' 47,038 12,465 X X 3,830 £ X 181,710 ■794-5 - 296,098 17,069 li,C54 1 '-''5,346 6,286 32,706 . 1,320 - 469,879 1-95-6 - 134,046 3,058 5,693 235,013 8,610 13,084 - 10,283 - 409,787 1796-7 - 319,053 3,315 30,148 273,654 15,525 17,169 - 19,885 - 678,749 1797-S - 167,210 3,684 67,674 283,893 77,594 33,527 - 13,200 - 642,782 1798-9 - 214,616 - 38,109 440,275 105,200 13,168 - 61,484 8,810 881,66: 1799-800 295,65s - 445,413 782,449 94,959 - 18,077 102,804 7,779 1,747,139 iSco-i - I9",7J2 53,009 395,37:: 491,472 222,118 12,483 40,041 130,009 24,736 1,566,972 i8c!i-i - 394,890 36,660 i4;,4Sn 636,046 36,171 62,326 70,400 151,-354 193,889 1,724,217 i8oj-3 - 861,87: 37,588 180,915 789,314 41,424 ioi,87x 1:0,673 206,054 246,870 2,586,581 1803-4 - 884,467 44,963 67,006 602,582 44,643 18,495 37.488 142,858 18,232 1,860,734 1804-5 - 673.787 65,218 93,242 811,214 65,391 11,220 33,718 92,479 6,781 1,853,050 1805-6 - 63.! ,9 n 12,184 lS,20I 939,861 - - 1,376 111,875 5,564 1,722,972 1806-7 - 164,111 165,839 122,072 549,871 - - 572 24,230 2,067 1,028,762 1807-S - 69,314 178,128 125.636 1,434,238 9,171 - 19,918 90,506 4.774 X.93 1.685 i8o8-9 - 18,199 89,085 158,032 510,406 - - - 19,372 2,: 35 797,229 1S09-10 - 64,918 11,780 208,190 764,2^3 - _ — 62,491 16,826 1,129,408 i8io-ii - 48.043 85,498 550,078 1,382,767 • 10,827 1,982 38,533 58,791 21,813 2,199,332 1811-JI - Total - 149,0:9 90,335 257,545 425,074 20,924 89 19,921 178,366 27,690 1,169,013 5,670,445 993.351 »,9i6,86o 11,504,716 77I:,^09 318,120 400,717 1,481,191 588,966 =4085,673 IMPORTS and CHAIRMAN, &c. of The EAST INDIA COMPANY. IMPORTS FROM INDIA IN PRIVATE TRADE OF COMMANDERS AND OFFICERS. 65 > 793-4 - Piece Goods. Raw Silk. Cotton Wool. Indigo. Sugar. Saltpetre. Pepper. Drugs. .\ll other -Articles. ToeiL 98,190 £ £ 37,921 218,841 £ 5.054 £ £ 5.280 £ 76,640 3 £ 441.9*9 •794-5 - 162,967 - - - 140,974 9.834 - ■ - - 60,093 - - J73.868 I79J-6 - 117,146 . . J02,2l8 3.807 29 2,593 «ti,823 915 458j4« 1796-7 - 55.303 - - - 148,659 •.324 - - 11,163 57.453 910 274,811 1797-8 - 25i»54 - 21,740 141,506 499 - - - - 96.389 7.772 193.^6'> 1798-9 - 29.499 • ",334 266,176 6,197 - - i,76S ii«U37t 3.7 '5 448,061 1 799-800 40,077 ',034 IC.538 226,708 4,140 3.060 8,041 64,990 12,220 jT'^SoS iJoo-i • 91.3S7 46,615 8,889 280,886 17.332 - - 4,378 50,222 36,710 546.419 i8oi-a - 34.965 274 - - 168,588 7,211 97 12,501 41.326 J»*65 268.427 iSoa-3 - 207.799 - 8,151 89,261 827 - - 18,367 102,530 29,117 456.05* 1803-4 - 174,848 11,164 - - 100,052 924 - - 8,388 »8,4Il i>5'6 315.303 1804-5 - 180,034 6o,*33 593 269,926 - - 1,058 7.471 5.819 45,85* 570.986 igoj-6 - 138,089 3^.044 7,636 452.997 - - 144 7.395 84.445 5.360 7*8,110 1806-7 - : 36.401 86,231 19,485 224,515 135 •4 980 47,529 9.558 424.846 1807-8 - 42,229 74,901 18,104 419.5*0 - - 377 - - 45.960 16,724 617.87^ 180S-9 - 47,334 12,696 35.420 300,152 '- - 48 27« 83,503 41.379 5*0,603 1809-10 - 11,646 90.433 22,021 231,735 - - •156 4,762 66,414 5,108 433,»75 1810-11 - 76.335 121,6,15 7,626 360,180 1,602 •94 I7,t64 91,678 13,422 690,396 1811-12 - Total - 51. 'I* 148.867 - - 47.637 - - 28 1.398 60,494 •9 309.555 1,631,615 686,188 209,258 4,290,59' 58,886 5,205 112,420 1.315.09I 233.773 8,543.027 SHORT ABSTRACT; Total Privilege Private Trade Which contained Indigo Cotton All other Articles ^11,504,716 4,390,591 2,916,860 209,258 ^ i5.795>307 3,126,118 .€14,585,673 S.543.027 X33, 128,700 13,931.423 14,207,275 It may be proper to point out to attention the great proportion which the articles of indigo and cotton bear to the whole ot thefe import.'; ; and, likewiie, to refer to the great quantities of thefe two articles, which, it has already appeared, re- main flill in the Company's warehoufes, either unfold or uncleared. Of the prac- ticability of enlarging the imports into this country, of Indian produdion, fit for the European market, it was formerly ftated by the Court, that the diligence, not only of the different EaR India Companies of Europe, but of individual Europeans trading through the whole extent of the Indian Seas, has been excited during three centuries, to difcover articles which might be profitably exported to Europe ; and after all the experience thus acquired, particularly in the prefent day, when the foafting and internal trade of India has been greatly enlarged, it is not reafonable v-.-!-j(32.) R to ^66 CORRESPONDENCE betitxen PRESIDENT of INDIA BOARD to be affumed, upon merely theoretical ideas, that there is any fource of materials raw or manufadured, in India, yet undifcovcred, by which the imports from India into this country can be profitably augmented ; and with refpeft to thofe articles which may now be confidered as the flaples of India ; namely, curton piece goods, raw filk, indigo, raw cotton, and fugar ; the demand for the fi< u Js reduced and limited, by the vaft growth and excellence of the cotton manufaSures of Britain and Europe ; the fiecond, to whatever extent demanded, can be bTougi;t home in the fliips of the Company ; the third, already imported to an extent that nearly fupplies the confumption of Europe, may alio eafdy be carried home in the fame channel ; and the anicle of raw cotton, brought from a great diftance, at an unavoidably high freight, which renders It incapable, when this country is engaged in war, and North America and Portugal at peace with us, of entering into competition with the cottons of Georgia and Brazil, both fuperlor in quality, and brought to this market moreexpeditioully, to meet the fluftuations of price and demand, and at a far cheaper rate of freight. As to fugar, if It could be imported to this market, fo as to rival the produce of our Well India colonies, which it cannot be in time of war, furely this is not a trade which could be, on the whole, profitable to the nation ; and no other great article of Indian produce has ever been thought of, except hemp, of which the culture is ftiil In an early ftage in India, not capable of ftanding a competition with RutTia, •whenever our intercourfe with that country is open. It is in this flate of things, when the Company cannot find vent for more exports in the Eaft ; when their warehoufes are filled with goods from the Eaft, for which there is no demand ; and when they fuffer from the continental reftriftions In common with all His • Majefty's fubjefts, that the Petitioners, whofe chief complaint Is of general flag- nation of trade, cenfure the Company for not enlarging theirs. Ninthly- The demand of a full and entire freedom of trade to the Eaft ward of the Cape of Good Hope, including China and all the countries within the Charter of the Eaft India Company. Such are the views of the Petitioners, profeffedly no lefs than a complete fub- verfion of the fabric of the Eaft India Company, and all the great commercial eftablifliments connefted with It ; involving alfo the hazard of the political interefts of the Britlfli empire, Indian and European. Certainly, it muft beprefumed, the Petitioners exped fuch advantages to follow from all thefe changes, as (hall com- penfate for the immenfe facrifices which they require ; but your Committee hope it has fufEciently appeared, from the preceding difcuflion, that all fuch expefta- tlons are illufory and vain. If, however, they are not Indeed the offspring of fan- guine theories, but the refult of fober rational confideration, might not the fame fobriety of thought be expecled to pay an equitable regard to the ruin which would be inflifted on exifting interefts, and to look to fome fuitable provlfion againft the poflible contingency of final difappointment. Yet thefe Important objects feem to iiave received no adequate attention. Againft the alledged danger of exceffive fpeculation, (a danger which Is in fad, a public concern), It is argued, " that the " enterprife of individuals is uniformly limited by their means and fuccefs." But if they involve all their friends, and fink in their attempts, and this fliould be the cafe of many, would not the refult be a general calamity ? The argument of the Petitioners aflumes, that the new trade will be finally fuccefsful ; but the foregoing review deprives them of all right to go upon this fuppofition. For the deep injuries which all the London eftablifliments connefted with the Eaftern trade would receive, there is abfolutely no relief or reparation of any kind adverted to. And for the Company, they are told firft of their wealth, knowledge, and experience (all of which have been before difparaged), as enabling them to oppofe, unaflifted, private efforts ; that if they can carry on trade to greater advantage than individuals they have nothing to fear, and that they will reap their reward in competition. All this is particularly applied to the China trade, which is not a new trade, nor, as has been (hewn, either fufceptlble of increafe, or likely to be preferved at all as a general trade. The transfer of it to other hands would add nothing to the nation, whilft the entire benefit of It i» Bfice&ry and CHAIRMAN, &c. o/Thit EAST INDIA COMPANY. 67 neceflaiy for the fupport of the political interefts of the Company. Secondly • it is propofed, that for indemnifying and remunerating the claims of the Com- pany, they " (hall have a fair and equal impqll on the trade in queflion." If the trade and rate of impoft were both likely to be confiderable, which your Commit- tee fee no reafon to fuppofe, the idea of an indemnification for the whole br giving afterwards a part (and probably a fmall part), can hardly be treated as a ferious idea. But for the detriment which the Company in their political capacity might fuf- tain, for all the ill confequences that might enfue to the government and immenfc population of India, no provifion whatever is propofed. And againft an entire failure of the vail profpeds now fo fanguinely entertained, this confolation is at laft adminiftered, that *' the very woril that can occur, in the event of" the abandonment of the trade by the Public, would be, that matters might "■ return " again to their prcfent Jlate" But can it be ferioufly fuppofed, that after the fabric of the Company and its immenfe dependent and connefted ellablifliments in England, in India and China fhould have been fet afide and left to decay and ruin ; when India (hould have been laid open, and the China eftablilhment fuperfeded, and fo much capital funk, that things could be brought back to their former ftate. The poffibility of fuch a mighty convulfion, and the eafe with which it is contemplated by the Petitioners, may be fufficient to excite a falutary fear of the rage of theory, fpecu- lation and innovation, may fuggefl the prudence of (topping Ihort of the precipice to which they would conduct us ; of at leaft refting at fome point, fo far fafe, as not to expofe the whole of the empire, Indian and European, to the terrible alter- native here brought into view. A great extenfion of the trade to or from the Eaft, the objed for which fuch dangers are to be run, is fhewn in the preceding pages to be impradicable ; and it has been alfo fliewn, that in the profecution of the attempt to obtain it, the interefts of Britifti India, and of the finances of this country, would be endangered. But if an experiment is ftill required to be made in the vaft continent of Hindoftan, and its adjacent iflands, (for to pu(h the Expe- riment into China, would be to rifle the trade of that country and all its advantages, without the chance of any benefit), the means of making a large ample experi- ment, in which the whole nation may participate, through the port of London, are now offered ; means which fliall give the faireft opportunity to afcertain the prafticability of extending the trade, without breaking down prefent eftabliih- ments, or cxpofing the Empire, in cafe of failure, to the moft difaftrous confe- quences. At the fame point, therefore here defcribed, your Committee humbly hope the wifdom of His Majelly's Minifters and Parliament, will ftill fee fit 10 reft. (Signed) Hugh. Inglis. RoBT. Thornton. Jacob Bosanquht. Wm. F. Elphinstone, Theophilus Metcalfe. Joseph Cotton. Charles Grant. Georgi Smith. Edward Parry. sweney toone. William Astell. LETTER. -68 CORRESPONDENCE between PRESIDENT of INDIA BOARD LETTER, from the Chairman and Deputy Chairann, to the Right honourable the Earl of BuckinghamfliirCj alfo noticed in the precedmg Minute. My Lord, Eaft India Houfe, loth February i8 13. BY the defire of the Court of Directors of the Eafl India Company, we have the honeur to fubmit to your Lordfliip a Report of the Committee of Correfpon- dence, and refpeflfully to entreat your ferious attention to it. It contains an anfwer to the matter of the Petitions which were laft feflion prefented to the Houfe of Commons againft the renewal of the Company's Char- ter, and particularly to thofe arguments to which your Lordfhip was pleafed to refer us in fupport of the claims of the out-ports to be opened to the import trade from India and China; it alfo enters into a re\'iew of all the principal queftions of a commer<:ial nature which have been agitated by thofe perfons who demand the abolition of the Company's exclufive privileges ; and in this Minute, my Lord, the Court hope you will find the following pofitions, among many ethers, well edablifhed. Firfl, That the Petitioners have not correQly defcribtd the prefent flate and effects of the Company's exclufive privileges and trade, nor at all appreciated the evils, political and commercial, which would refult from withdrawing thofe pri- vileges, but have arraigned the monopoly, as if it retained all the flridnefs given to it a century ago, as if no confiderable relaxations had been made in it within the la ft twenty years, and as if ftill larger relaxations were not now acquiefced in by the Company. Secondly, That the clamours which have been raifed againft the Company, on account of the trade of neutrals, particularly the Americans with India, are wholly unjuft ; that no fuch trade, unlefs with the Port uguefe, now exifts, and that the .prevention of injury from it is eafy. Thirdly, That the Petitioners have by no means obviated the objeftions ad- vanced by the Court againft the opening of the out-ports, nor in the leaft proved the expediency or fafety of that meafure ; and that the adoption of it would be attended with thofe dangers which the Court have in their former letter* defcribed : And, Fourthly, That all the former reafonings of tlie Court againft the pradlicabi- -lity of enlarging the confuniption of Britifh manufaQures in India or China, or of extending profitably the imports of thofe Countries into Britain, are confirmed •by the refult of the large experiment which has aftually been made by private Merchants and Traders in the courfe of near twenty years paft, from which ex- periment accurately recorded, it appears that not one new article for the confumpiion .of the natives of the Eajt, has in all that time been fent from Great Britain. And from this very important faft, new perhaps to your Lordfhip and the public, though long exifting in the records of the Company, the Court of Di- reftors join with their Committee of Correfpondence, in hoping that as the views of the Petitioners are unlimited, going in the fiift place to the fubverfion of all the exifting ellablifliments in the India and China trade ; as this ruin would be im- menfe, and the compenfation which would be due for it, would be immenfc alfo ; as the political evils which would thence follow, as detailed in the former letters of the Court (evils ftill to be pre-eminently regarded) would fatally afteft the interefts of the whole Empire ; and as the means are now offered of making the fullelt and faireft further experiment of the pradicability of enlarging the trade to and trom India, upon fo great a fcale as fhall admit the whole nation to par- ticipate in it ; as this is an experiment which may be made without breaking .down the prefent fyftem and all its cftablifhments, as it affords a method of afcer- taining all the good that is attainable, without hazarding the dreadful evils that are othcrwife to be apprehended ; we fay, my Lord, the Court of Direftors do, under thefe jnomentous circumllances, earneftly hope that His Majefty's Minifters will and CHAIRMAN, Sec. o/The EAST INDIA COMPANY. 69 will flill fee fit to flop at a fafe point, which will give the utmoft reafonahle con- ceffions to one fet ol' men, whilil it will prelerve the intercfts of Britifh India, of all piirties now connected with it, and of the Empire at large, from ihe difallrous confequences ot unbounded innovation. We have tlv^ honour to be, my Lord, Your Lordlhip's moft obedient humble fervants, f Signed) Hu^h Jnglis. Robert Thornton. The Right Hon. the Earl of Buckinghamfhire, &c. &c. &c. AT a General Court of the United Company of Merchants of Eng- land trading to theEall Indies, hdd on Wednefday the 17th Fe- bruary 1813. MINUTES of laft Court of the 26th ultimo, were read. The Chairman acquainted the Court, that it is aflembled for the purpofe of taking into confideration the draft of a Petition to the honourable Houfe of Com- iTions, refpecHng the renewal of- the Company's exclufive privileges. The faid Petition was then read- The Chairman alfo acquainted the Court, that the Court of Direftors had pre- ■ pared the Draft of another Petition to the honourable Houfe of Commons, for ■payment of a debt due by the public, and for relief by way of loan. The fame was alfo read ; and. The Court proceeding to take the above-mentioned Petitions into confideration. It was moved, and, on the queftion, Refolved, That the further confideration of tlie faid Petitions be adjourned till 'Tuefday next. The Chairman then acquainted the Court, that the Petitions will lie at this houfe for the perufal of the proprietors. The Chairman further acquainted the Court, that the Committee ofCorref- pondence had prepared a Report on the Subjed: of the Petitions prefented to Par- liament during the laft Seffion againft the renewal of the Company's Charter, which Report was laid before the Court of Directors, and unanimoufly approved by them on the i oth inftant, and that the faid Report is now printing for the information of the proprietors. The Title of the Report was then read, as was alfo 'Draft of a Letter to Lord Buckinghamfhire, tranfmltting Copy of the above mentioned Report, and Leuer from Lord Buckinghamfhire in reply. The Court then, en the queftion, adjourned. Gentlemen, India Board, 15th Februaiy 1S13. I HAD the honour of receiving your Letter of the 10th inftant, enclofing a Report of the Committee of Correfpondence, to which you defire my ferious at- tention ; and you may be afTured that the Report will receive that ferious and -'deliberate attention which has been given to every part of the important fubject to which it relates. I have the honour to be. Gentlemen, Your obedient and fmthful humble fer\'ant, (Signed) Buckinghamjhire. The Chairman and Deputy •Chairman of the Eaft India Company. ;.- (32.) S ■ AT 70 CORRESPONDENCE between PRESIDENT of INDJA BOARD AT a General Court of the United Company of Merchants of Eng- land trading to the Eaft Indies, held on Tuefday the 23d Februaiy 1813. ■MINUTES of lafl: Court of the 17th inftant, were read. The Chairman acquainted t!:e Court, that it is met by adjournment, for the ;.purpofe of taking into further confideration the drafts of the Petitions to the ho- nourable Houfe of Commons, which were laid by the Court of Diredors before the General Court on the 17th inftant. The draft of the Petition, praying a renewal of the Company's exclufive :privileges, in which fome amendments have been inferted, as propofed by the Court of Diredors fince the laft General Court, and now fubmitted to this Court, ■was read. To the Honourable the Commons of the United Kingdom of Great Britain and Ireland, in Parliament aflembled ; The humble Petition of the United Company of Merchants of England trading to the Eall Indies j Sheweth, That youT Petiuoners, in approaching this Honourable Houfe with an appli- cation for a continuance of the fyftem by which the relation between Great iBritain and the Eaft Indies is now regulated, hope they may be permitted to fhate the outlines of the Hiitory of the Eftablilhment of your Petitioners, as well as their prefent fituatiou as to their property and rights, their fundions and obli- gations. That the firft Adventurers in a Trade from England to the Eaft Indies, by the •way of the Cape of Good Hope, were incorporated by Her Majefty Queen Eli- zabeth, by her Royal Letters Patent, bearing date the 31ft day of December 1601,' by the ftile of " The Governor and Company of Merchants of London *' trading into the Eaft Indies," to whom, by the fame inftrument, the excluftve right of trading to that Country was granted by her faid Majefty for a term of fifteen years from Chriftmas then laft paft. That the Corporate capacity of the faid Governor and Company of Merchants of London trading into the Eaft Indies, with the privilege of the exclufive Trade, was renewed, revived and confirmed to them in perpetuity by feveral Charters or Letters Patent, granted refpedtively by their Majefties King James the Firft, King Charles the Second, King James the Second, and King William and Queen ^ Mary, fubjeft neverthelefs to a provifion, that, if the continuance of any of their Char- ters, in the whole or in pan, ftiould not be profitable to the Realm, that, upon three years warning to be given to the faid Company, all the faid Charters lliould ceafe, determine, and be void. ' That the faid Governor and Company were empowered by their Charters to eftablifli Fadories and Settlements in the Eaft Indies, •* to have the Government of fuch Fa6lories and Settlements, and to appoint Governors with a judicial Power to equip and maintain military forces by lea and land for the defence of their Settlements, with the power of making peace and war with any Princes or people who were not Chriftians, within any places of their trade, to make reprifals from thofe perfons, in thofe parts, from whom they lliould fuftain any lofs or injury, to ered caftles, fortifications, forts, and ganifons, and alfo to coin Indian money. ^ ' Printed Charters, jj.to Edition, page 3. » Ibid. 3ill May 1609 page ay ; 3d April i66f, page 54 ; 5th Oftober 1677, page 108 ; 9th Aiiguft 1683, page 116 ; 12th April 1686, page 125 ; /th Oftober 1693, page 141 ; inh Nov. i6(jz- page J52. ' Ibid. aSth September 1694, page 181. 1 Ibid, jd April, 13th Charles II. i66l, page 54. 5 Ibid, ctli Oaober, 28th Charles II. 1677, page in. That, and CHAIRMAN, &c. o/The EAST INDIA COMPANY. 71 That, by virtue of thcfe Powers, the faid Governor and Company made Settle- ments, and built Forts and Factories, at different places in the Eall Indies, at a very great expenfe, which Settlements, Forts, and F..^1:ories, with ibme territory annexed to them, were purchafed from the native Piir.ces of the Countries within their limits ; the fovereignty remained with their refpective Chiefs, but the imme- diate Governmenr yf thofe acquifitions was exerciftd by the Company under the powers which are before mentioned to have been granted to them by Charier ; and the laid Company alfo made a Settlement in the Ifland of St. Helena, on its being abandoned by the Dutch, about the year 1651. That the property and fovereignty in and over the Port and Ifland of Bombay having been ceded by the King of Portugal to His Majefty King Charles the Se- cond, as part of the dowry of the Infanta of Portugal, on her marriage with King Charles, His faiJ Majefty, by his Royal Letters Patent, bearing date the ^j\.\\ day of March 1669,' granted and conveyed unto the faid Governor and Company, their fucceflbrs and afligiis, t!ie property thereof, with all the rights, profits, terri- tories and appurtenances, and conftituted them the true and abfoluto lords and proprietors of the Port and Ifiand, in the moft unlimited manner, faving to His Majefty, his Heirs and Succeffors, his Royal Sovereignty of and over the in- habitants there ; but His Majefty granted the authority of immediate Civil and Military Government of the place to the Company ; and Saint Helena having been taken from the faid Company by the Dutch in the War of 1674, was re-taken by a force belonging to King Charles the Second, who, by his Royal Letters Patent, bearing date the 16th day of December 1674,' re-granted that Ifland, with all the rights, piofits, territories, and appurtenances whatfoever, unto the faid Governor and Company, their Succeifors and Afllgns, and His Majefty conftituted them the true and abfolute lords and proprietors thereof, faving the allegiance due to His Majefty, His Heirs and Succeifors ; and the faid Charter contained powers and authorities for the government and defence of the faid Ifland. That by an A6t of Parliament pafled in the 9th Year of the Reign of His late Majefty King William the Third,"* for raifmg a fum of two millions by loan for the Public Service, it was enacted, that all the fubi'cribers to the faid loan fhould be intitled to traffick and ufe the trade of merchandize in fuch places, and by fuch ways and palfages as were then already frequented, found out, or difco- \'ered, or which thereafter fliould be found out or difcovered, and as they feverally fhould efteem to be fitteft or beft for them, into and from the Eaft Indies, in the Countries and Parts of Afia and Africa, and into and from the iflands, ports, havens, cities, creeks, towns, and places of Afia, Africa, and America, or any of them, beyond the Cape of Bona Efperanza to the Streights of Magellan, where any trade or traffick of merchandize was or might be ufed or had, and to and from every of them ; and, by the faid Aft, ' His Majefty was empowered to incorporate any of -the Subfcribers who fhould defire it, to trade with a joint ftock ; and it was enacted, '" that at any time, upon three years notice, after the 29th day of September 171 1, upon repayment by Parliament of the faid fum of two millions, or fuch part thereof as (hould be advanced, all the corporations to be created in purfuance of that A£t, and the benefit of trade thereby given, fliould abfolutely ceai'e and determine ; and it was enafted " that all fuch perfons as fliould have a right of trading by virtue of that A£t, fhould have the fole and exclufive Trade within the limits before mentioned. That the faid Sum of two millions was fubfcribed within the time limited by the faid Aft ; and thereupon, by a Charter bearing date the 5th day of Septem- ber 1698," His faid Majefty was pleafed to incorporate the larger part of the Subfcribers to the faid loan, by the ftile of " The Englilh Company trading to " the Eaft Indies ;" and, by the faid Charters, powers of makiiig Settlements, ' Printed Charters, page 80. < Ibid, page 96. * 9 & 10 William III. cap. 44. fcft. Ci. " Sect. Gi. " Se^. 70 " Sea. ax. '^ Printed Charters, page 1S8. aad yt CORRESPONDENCE bei'-Mcn PRESIDENT of INDIA BOARD asui governing them, and maintaining military forces for their defence, were j?;ranied to the Englifh Company, fmiilar to thole which are before ftated lO have been granted to the old Company, fmce diftinguilhed by the appellation of The London Company ; the fovereign right, power, and dominion, over all the Set- lliiaenis to be made, being referved to His fp.id Majefty. lliat the above Adi of Parliament and Charter would have operated to have extingnifhed and determined the corporate capacity and privileges of the London Company, but the Aft contained a provifion that they fhould have liberty to trade till the 29th of September 170 1, and the London Company having fub- fcribedthe fum of ^315,000. towards the fum of ^2,000,000. to be raifed, became entitled to trade in refpect of it ; and therefore, by an Ad of Parliament palied in the i 2 th year of the Reign ot His faid Majefty King William the "^ Third, their corporate capacity was continued to them, fubjeft, neverthelefs, to be deter- mined upon the redemption of the fund eftabliihed by the faid Ad of the 9th of His faid JVkjefty's reign. That the faid Englifh Company acquired and fettled feveral Fadories m the Eaft Indies, -at a very large expenfe."'' Thaf previous to the Eredion of the Englifli Company, the London Company had carried on their I'rade with the Eaft Indies in competition with the Portu- guefe and Dqtch and French Companies, and alfo in competition with unlicenfed adventurers from Great Britain who traded there, notwithftanding the exclufive grants which the London Company was in poffeffion of, and which unlicenfed adventurers, at times, acquired confiderable afcendancy amongft the Native Powers, '^ and, -after the incorporation of the Englifti Company, they became alfo competitors in the faid Trade.; and no European nation having then acquired any confiderable territorial dominion, the whole of the trade by Europeans was car- ried on. entirely at the defpotic will and fuflerance of the Native Princes of the Mogul Empire ; the Government and Officers of which almoft conftantly Ihevved their favour and protedion to fuch of the competitors from whom they could obtain the largeft prefents ; and in proportion as they proteded one of them, they opprefled tiie others ; as an inftance of which, your Petitioners {how, that the fervants of the Englifti Company in India, by means of corrupt influence with the minifters and fervants of the Mogul, procured all the principal Officers and Members of the Prefidency of the London Company at Surat, then the chief feat of their trade in India, to be imprifoned for feveral feafons, and wholly to inter- -rupt their commercial tranfadions.'* That .the London Company .and the Englifh Company, finding, that if their competition had continued, ruin muft have enfued to both, agreed, about the .year 1702, to unite together: the union was effeded by force of two feveral In- dentures, dated refpedively the 22d day of July 1702, one being an indenture tripartite, made between her late Majefty Queen Anne of the firft part, and the faid London Company of the 2d part, and the faid Englifli Company of the third •part.; '' and the other being an indenture quinquepartite, made between the faid London Company of the firft part, the faid Englifh Company of the fecond part, and certiiin perfons, Truftees of Property belonging to the London Com- pany, of the third, fourth, and fifth parts, '* and by force of an Ad of Parlia- ment, pafTed in the 6th year of the reign of Queen Anne, '" and of an Award of the Earl of Godolphin, the Lord High Treafurer of Great Britain, dated the .29th day of September 1708. By the terms of the Union, all the property and rights belonging to both Companies, at home and abroad, including the fettlements, forts, fadories, and ■3 Private Afts, 12 William III. cap. 28. '"' Indenture quinquepartite, page 316, They were made over to the United Company for ^£70,000. 'i See Annals of the Ealt India Company. '^ Annali, vol. iil. pages 519. 54.3, 563. '? Printed Charters, page 243. '* J'rinted Charters, page 316. "» 6th Anne, cap. 17. territories.. and CHAIRMAN, 8:c. of The EAST INDIA COMl'ANY. y^ territories, vvliich thcv had acquired as is above ftated, were vahie 1, and in confide- ration of the value of the property of the Loudon Company being paid or al- lowed in account to them, they, by proper legal inflrumcnts, transferred and made ov2r all their property to the Englifli Company, and the KngiilTj Company we-c allowed, in account, the value of their property ; and the property and rights of both Companies were thenceforth veiled in them, for the beneiic of the united conce.n ; and the London Company having- completed the transfer of its property, furrendered its corporate capacity ; and from thenceforth the Englifi-» Company took the ftyle of " The United Company of Merchaiiis of England *' trading to the Eaft Indies ;" which is now the llyle of your Peiiiioners. Your Petitioners crave leave to draw the attention of the Houfe to fome part of the fubjeds of which the property of your Petitioners conllfted at the time of the union of the two Companies in 1702, and which they derived by transfer from them, with the ccgnifance and fanftion of Her Majelty Queen Anne, and of the Parliament ; amongfl: other things your Petitioners were then entitled to and poiTefled of the iflands of Bombay and Saint Helena, the fovercignty of which was vefted iii the Crown of Great Britain ; they were entitled to and pof- fefled of the Fadories of Surat, Swally, Broach, Amadavad, Agra, and Lucknow ; on the Coaft of Malabar, they were entitled to and poffeffod of the Forts of Carwar, Telllcherry, and Ongengo, and the Faiftory of Callicut ; on the Coaft of Coromandel they were enlilled and poffeffed of the Fort Saint George, with the Caftle, Fortifications, and Territory thereto belonging, on which a large City called Madras was built, the houfes of which belonging to and paid rent to your Petitioners ; Fort Saint David, being a ftrong fort and fadory, and about three miles compafs of the circumjacent country, on which feveral fmall towns and villages were erefled ; the Factories of Codolore, Porto Novo, Pettipoiee, Mado- pollam, and the Fort and F.iftory of Vizagapatam ; in Bengal, your Petitioners were entitled to and poflefled of Fort William and the Town of Calcutta, with a large territory thereto belonging ; the Fadories of Balhrore, Coiliutbuzar, Dacca, Hughly, Maulda, Rajamaul, and Patna, all thefe poflefTions were fubjed to the fovereignty of the Great Mogid ; on the Illand of Sumatra., your Petitioners were entitled to and poffefled of York Fort at Bencooien, and a Faftory with a territory of about five miles thereto belonging, and a Fadory at Indrapore. That after the union of the two Companies, your Petitioners conduded them- felves fo as to conciliate and acquire the confidence of the natives of India, and for a confiderable period ol time they had no occafion to ufe the right which they enjoyed of maintaining a military force, except for purpofes little beyond thofe of police, and as guards of their fortifications agaiuft furprife ; but near the middle of the lafl century it became necelTary for your Petitioners to enlarge their military force, and to exercife the power of war, and of making political engagements wuh fome of the Native Powers, to fupport the Britifli interefts in India, and in order tu counterad the intrigues of the French, who had become auxiliaries to other Native Powers, with the defign of driving your Petitioners out of the Eaft Indies, and of excluding tiie Britifh nation wholly from Afiatic commerce; but by means of the forces raifed and maintained by your Petitioners, 'and at their fole expenfe, your Petitioners completely defeated thofe objeds ; fo that, at the conclufion of the war which ended in the year 1763, the French were left without cne fmgle fettlement, and almoft whiiout i.-.fluence, in any part of Afia. In the year 1797, the Nabob of Bengal permitted your Petitioners to eftablifli a Mint at Calcutta ; " and in the fame year the faid Nabob made over to your Petitioners the property in certain lands in Bengal, generally called the Twent)'- fom' Purgunhas, " and the Saltpetre Lands of the whole provinv-e of Bahar ; "" and in the year 1758, your Petitioners obtained a grant from the fiiid Nabob for the free tenure of the Town of Calcutta, difcharged from the rent to which, ^ Printed Treaties, page 9, ;" Ibid, page to. " Ibid, page 12. (32.) T to 74 CORRESPONDENCE beh::'cn PRESIDENT o/INDIA BOARD to that time, it h:ui been fubjetl: ; '-' in the year 1759, the Souhah of the Decan made over to your Petitioners thf^ vhole of the Circar of Mafuhpatam, with eight diflricfls, as well as the Circar of Nizampatam and the diftrifts of Condavar and Wacahnanner ; "'•* in the year 1763, the Nabob of A'cot made over to your Peti- tioners feveral diftrids of land furrounding Madras, ""^ which lands have been fince called the Jaghire of your Petitioneis ; and fuch transfer was confirmed in the year 1765 by the faid Nabob, and alfo by the Great Mogul ; ^'' in the year 1764, the Mogul made over to your Petitioners the Country of Gauze-poor and the reft of the Zemindary of Rajah Bui want Sing ; ''' in the year 1765, the Great Mogul granted to your Petitioners the country called the Northern Circars; "' and in the loUowing year fuch grant was acceded to by the Soubah ; ^^ and in the ye:ir 176^, the Great Mogul appointed your Petitioners, in perpetuity, to the office of Dewan of the Provinces of Bengal, Bahar, and Oriffa, fuch appointment being made as a free gift ; '° and by virtue ot fuch grant your Petitioners, in the execution of the office, acquired the tight of colleftion ot all the revenues of the faid provinces, for their owii ufe, free from any account thereof to be rendered. Your Petiiioners crave leave to remark, that no part of tlie property in any of the forts, faftories, or territories, which became veiled in your Petitioners at the time of the union of the two companies, nor any of the territories nor rights lailly herein before mentioned to have bef.n granted to your Petitioners, were acquired by coriqueft, but by purrhafe, by means of pecuniary payments, or by fervices rendered to, or other confidcrations moving the Grantors. That about the year 1767, a claim was made on the part of the Public to the beneficial intercft in the territorial acquifitions and revenues then lately obtained there, and thereupon agreements have been made from time to time that the poifeffion of fuch acquifitions and revenues ftiould remain with your Petitioners upon a participation of the profit of the revenue between the Public and your Petitioners, as mentioned in feveral Afts of Parliament made and pafled at diffe- rent times fince 1767,^' without prejudice to the claims of the Public or of your Petitioners. That, previous to the year 1773, the Government of the fettlements and acqui- fitions in India was conduced under the uncontrouled diredion of your Peti- tioners, by virtue of the powers of Government which they derived from their Charters ; but, ever fince the year 1773, the mode of the immediate Government of India has been regulated by Parliament, ^^ and from that time, to the year 1784; in purfuance of diredlions of Afts of Parliament, the Lords Commiffioners of His Majefty's Treafury, and one of His Majefiy's Principal Secretaries of State, in their feveral departments, were made acquainted with the Correfpondence and Orders fent to and received from India by your Petitioners, in any way relating to the management of the revenue, or civil or military affairs and government of your Petitioners in that country; and from the year 1784 to the prefcnt time, all ads, operations and concerns, which in any ways have related to or concerned the Civil or Military Government or Revenues of the territories and acquifitions in the baft Indies, have been placed under the fuperintendence and controul of certain Commiffioners appointed by His Majefty, in purfuance of Ads of Parlia- ment palfed for that purpofe ; " and your Petitioners have been reftrained from giving any orders or dire£tions relative thereto, without the concurrence of the faid Commiffioners ; and in cafes in which the ftud Commiffioners have been of opinion that the fubjeft matter of any of their deliberations, concerning the levying war or making peace, or treating or negotiating with any of the native Princes or States in India, communicated in Orders to any of the Governments in India, 'i Printed Treaties, page 23. ^^ Ibid, page 347. '^ Ibid, page 348. =" Ibid, page 362. ^7 Ibid. p:ige 37. ^* Ibid, page 361. '9 Ibid, page ^67. ^o Ibid, page 43. 3" 8 Geo. 3d. cap. 17 ; 9 Geo. 3d. cap. 24 ; 13 Geo. 3d. cap. 64 ; 19 Geo. 3d. cap. 61 ; 20 Geo 3d. cap 56 ; 21 Geo. 3d. cap. 65 ; 33 Geo. 3d. cap. 52. 3^ 13 Geo. 3d. cap. 63. 33 24 Geo. 3d. cap. 25 ; 28 Geo. 3d. cap. 8 ; ji Geo. 3d. cap. 10 ; 33 Geo. 3d. cap. 52. have and CHAIRM.VN, &c. 0/ The EAST INDIA COMPANY. 75 Iiave been of ?. nature to require fccrecy, fuch Oi^krs have been Pent ihrou'^h the inedium of a 8ecr,it Committee of three of the Court of DiroilDrs of your Peti- tioners, accordiniT to the provifions in that cafe maJc by Parliament, without any privity of your Petitioners, or of their Court of Directors, and without any dif- cretionary authority on the part of the members of fuch Secret Committee. That between the period when fuch claim as herein-before mentioned was firft made, on the part of the Public, to the territorial acquifitions in the Kail Indies,, and the Year 1793, a further acquifition of territory was made in India. ■ That the Term heretofore granted to your Petitioners in the eyclufive trade to the Eafl: Indies, being about to be redeemed in the year 1794, an Ail of Parlia- ment was made and pafi'ed in the 33d year of the reign of His preiViut '■' M.,j::l}y ; wherebv it was enafted, among other things, that the territorial acquifuious iit certain former Afts mentioned, together with the territorial acquifitiuns then lately obtained in the Eaft Indies, with the Revenues thereof refpedively, fhould con- tinue in the pofleiTion of your Petitioners during the further term by that Act granted in the faid e.xclufive Trade ; and that '^ your Petitioners fhould have the exclufive Trade within the limits mentioned in t'.e faid A61: of Parliament pafle;! in the 9th year of the Reign of King William the Third, fubjecf neverthelcfs to fuch right of trading as is thereby given to individuals, to be carried on ia the manner therein mentioned, and fubjedl to a provifo to determine fuch right at any rime, upon three years notice to be given by Parliament, after the n't; day of March 181 1, upon the expiration of the faid three years, and upon payment made to your Petitioners of any fum or funis which, under the provifions of any Aft of that Seffion of Parliament, fhould or might, upon the expiration of the faid three years, become payable to your Petitioners by the Public, according to the true intent and meaning of fuch Aft ; but it was enafted,^' that nothing in that provifo, or in any provifo in the faid Aft in the 9th year of King William the Third, in the faid Charter of the 5th of September, in the loth year of his reign, or in any other Aft or Charter, fhould extend to determine the Corpora- tion of your Petitioners; and, by the faid Aft," certain appropriations were made of all the profits arifmg from the Territorial Acquifitions and Revenues in India, and alfo from the fale of goods, and all other profits of your Petitioners in Great Britain, during the time of the exclufive Trade thereby granted to your Petitioners. That the notice required by the lafl mentioned Aft hath been given by the Speaker of your honourable Houfe, for determining the exclufive Trade of your Petitioners on the loth day of April 1814. That fince the pafTmg the faid lail mentioned Aft, a further acquifition of Ter- ritory and Revenue in India has been made, and is now in the pofTefTion of your Petitioners ; and your Petitioners alfo fhow that they have taken all the Forts and Faftories which belonged to the French, Dutch, and Danes in Hindoflan ; and your Pedtioners are now in pofiefTion as well of the Territories mentioned in the faid laft-mentioned Aft of Parliament as of thofe which have been fince acquired, and the Britifh Dominions in India, without a rival, or any enemy, now confifl of a very large proportion of the Peninfula, befides very extenfive Pro- vinces in the Noith of Hindoftan, and contain, as it is fuppofed, above fifty mil- lions of inhabitants, and have been acqtiired wholly at the expenfe and rifk of your Petitioners, without any charge whatever to the Britifh Exchequer, for, though land forces belonging to His Majeftv have been emploved, in conjunftion with the forces raifed by your Petitioners, yet the whole of tl ■ expenfe of fuch forces of His Majefty, whilft they have been employed in fuc'i fervice, as well as for their paffage out and home, and in recruiting, has bee- defrayed by your Peti- tioners ; befides which, for a confiJerable length of tine, your Petitioners fur- nifhed or paid for viftualling and ftores for the ufe of His Majefl;y's fhips of war in the Eaft Indies. 3« 33 Geo. 3<1. cap. 51, feift. i. " Seift. 71. J* Sea. 74. " See Sea. 107. to II J. Your 7«6 CORRESPONDENCE between PRESIDENT 0/ INDIA BOARD Your Petitioners beg leave humbly to reprefent, that the welfare and happinefs of the inhabitants of the Countiies which have come under the care of your Pe- titioners have been their chief object, and they have reafon to hope and believe that the amelioration of the condition of the people is nioft eminently confpicuous, when Hindofl?.n was firft vifited by Brilifh Traders, and long i.fter the union of the two Companies before-mentioned, when the oppofition, not only ot Britilh Subjed againft Britidi Subjei^, but of European againft European, and the corrupt and impolitic attempts which were conftantly made by one party to raife the defpoilc power of the Indian States againft other parties, had in fome meafure ceafed, the chara61er of the Native governments, as well as of the Native indivi- duals, remained unchanged, the ill uHige which they had received from individual and aflbciated Europeans roaming about without refoonfibility or controul, raifed a jealoufy and animofity againft every ftranger W'ithout Gil!.in61:ion, and the in- ternal ftate of the Country, where juflice and injuftice were equally articles of traffic to be bought and lold, left the rights of perfons and property entirely at hazard. Your Petitioners found the Country divided into many different States, all feudatory to the Mogul, who v*as confidered the fole proprietor of the whole ; thefe States were again divided among Zemindars and Chiefs, with other defigna- tions, under whom there were fub-infeudations, down to the Ryots, who were the adual cultivators of the foil, and no man held any land, and fcarcely a crop, but at the will of another of fuperior power ; there were no efleclual means of refort for the fupport of any right, or the avenging any wrong, and the will of the ftrongeft was the only praftical rule of condud which was eftabliflied ; under the management of your Petitioners, the fcene has been entirely changed ; by fixing certain permanent and invariable rents, a new and valuable property has been, as it were, created to the Natires j-by the eftablilhment of Courts of Juf- tice, and the appointment of liberal emoluments to thofe who devote their lives to the ftudy and adminiftration of Laws adapted to the ufages, cuftoms, and reli- gions of the inhabitants, they have removed temptations to corruption, and have provided the means for the inhabitants to be infured in the enjoyment of property thus created for them ; Courts of Criminal Judicature have alio been univerfally eredled, which have effeftually provided for perfonal liberty and I'ecurity ; by the alterations which have taken place, the praftical means ot foreign Commerce, of Traffic from port to port and internally, have been facilitated, very greatly to its increafe. That it may not be fuppofed that your Petitioners have affumed merits which they are not endtled to, they beg leave to refer to the Fifth Report of the Sclecl Committee of this Honourable Houfe on the Affairs of the Eaft India Company, which was prei'ented to this Honourable Houfe on the 28th day of July lafl. Notwithftanding ihe ameliorated condition of the Natives of India under the Government of your Petitioners, to which they have been accuflomed, yet the tranquillity of the Country is not maintained by a phyfical force, but chiefly by moral influence, and in a great degree even by prejudice ; any change would alarm them, and their fubmiflion to Britifh authority would be greatly endangered by an unreftrained refort of Europeans in fearch of wealth, either by Commerce or other means, at diffances from the principal feats of Governnient. or in fuch numbers at thofe feats as to be beyond the controul of the Governors, and by the relort of perfons who may not have fuch connexion with (and intereft to uphold) the authority of the Ruling Power, as will infure the utmolt care in their condudt, not only not to irritate, but pofitively to concihate the Natives with whom they may have dealings. Your Petitioners beg leave to reprefent, that their Military EftabliQmients, Ar- tillery, and Marine, have been of other moil important advantages to this nation, in as much as, in the feveral European Wars in which this Society has been en- gaged fince the Peace of Aix la Chapelle, the Forces of your Petitioners alone, or in conjundion with the Forces of Ilis Majefly at th& expenfe of your Peti- tioners, have taken all the Settlements belonging to the Europeans on the Continent of and CHAIRMAN, kc. ^fTHE EAST INDIA COMPANY. jj of India with whom this Nation has been at war, and fuch captures have formed part of the price of National Peace, without any compenfation to your Petitioners; and that, upon the fuojgeftion of His Majefty's Minilters, your Petitioners fent a large Force fro'nv India into Egypt, by the Red Sea, to co-operate with His Ma- jelty's Forces againll the French, in the year i3oi ; and, in the prefent War, by expeditions equipped from India, aH the Poffeirions of the French, Dutch, and Danes, in the Fall, have been conquered ; and though, as to fuch of thofe expe- ditions the accounts of which have been fettled, your Petitioners have been •allowed confiderable fums on the part of the Public, yet fuch allowances were calculated to reiinburfe only a part of the vafl: expenditure aftually advanced by your Petitioners for thofe great national objefts. Your Petitioners humbly hope they will be found to have been as attentive to, and as fucctfsful in, the cultivation of the Trade with China as they have been w ith refpe£t to the concerns in India ; the peculiarities of the Chinefe, and the delicacy attendant upon any intercourfe with them, mufl be too well known as matter of hiftory to every Member of this Honourable Houfe, to require any flatemcnt of it in this Petition ; it will be fufficient to inform this Honourable Houfe, that it is but little more than one hundred years fince any trade whatever has been carried on between this Country and China ; and that at this time about 46,000 tons of fhipping are employed by your Petitioners therein, and that your Petitioners entertain in China, for the purpofes of that trade, a regular eftablifh- ment of fervants called Supra Cargoes, and others of inferior ranks, whofe bufi- nefs it is to keep up a connedion with the few merchants, or more properly mer- cantile officers of the Chinefe Government, who are deputed to manage on the part of the Chinefe all the commercial tranfaftions between Great Britain and China ; by this means the trade has been cheriflied and preferved through, and notwithftanding many perils arifing from circumftances apparently trivial, and the fatal confequences of which could only have been averted by the moft delicate condu(^l:, and by the whole commercial concerns of the Britifli Nation being con- fided to one united authority. Your Petitioners feel it incumbent upon them to fubmit to this Honourable Houfe, an abftraft of their financial operations fince the arrangement contained in the above mentioned AQ; of the 33d year of the reign of His prefent Majefty was made ; at that time the capital ftock of your Petitioners amounted to the fum of ^€"5,000,000 ; fince that period, in purfuance of an Aft paffed for that purpofe, the capital ftock has been encreafed by the fum of .i^i, 000,000 contributed by the fubfcribers at the rate of ^200 per cent. At the time when the Aft of the 33d of His Majefty ^^ was paffed, fundry debts incurred in the defence and proteftion of the Britifh pofleffions in India, bearing intereft, were then due and owing by your Petitioners, amounting to j^7,ooOjOoo fterling, or thereabouts ; fmce that period the faid debt has been very much iu- creafedfor the fame piurpofe, and great part of fuch increafed debt was raifed upon loans, by the terms of which the creditors were intitled to the option of being paid off in India or by Bills of Exchange to be drawn upon London, and upon fuch obligations becoming due, your Petitioners have been obliged to provide out of their funds and credit at home the means of paying Bills of Exchange drawn upon them fince the year 1807, to the amount of j^i 0,902,924 fterling, ih dif- charge of Indian debt, and the debt contrafted for political purpofes, now remain- ing due in India, according to the lateft advices from thence, amounts to the fum of ^"26,000,000 or thereabouts, over and befides the fum of ^3,000,000 reduced three per cent, annuities, and the fum of ^1,400,000 confolidated three per cent., annuities, on which the fum of .^^2, 500,000 fterling was raifed, in purfuance of an Aft paffed in the laft Seffion of Parliament, to enable your Petitioners to pay Bills of Exchange, which had been drawn upon them from India, in part difcharge of the Indian debt, as hercin-before mentioned, and alfo over and befides the fum i' 33d Geo. 3d. cap, 52. fed. 108. (32.) U of 78 CORRESPONDENCE between PRESIDENT of INDIA BOARD of jf«, 202,000, or thereabouts, now owing by your Petitioners upon Bills of Ex- change not yet due, but payable in London, which have been drawn in India, hi further part difcharge of the faid Indian debt. That the revenues of the territorial acquifitions in India, in the pofleflion of your Petitioners, in the year 1793 amounted to the annual fum of ^8,000,000 or thereabouts, and by the latelt account and eftimates received from the Ead . Indies, the revenues of the territorial acquifitions now in the pofleffion of your Petitioners, amount to the annual fum of ^16,000,000 or thereabouts, but the civil and military expences of the Government have proportionably increafed. That the profits of the trade carried on by your Petitioners fines the year 1793, to the lateft period to which the accounts can be corredly eftimated, have amounted to the fum of ^'6,289,405, over and above the commercial charges of your Peti- tioners, and beyond the payment of intereft on their Bond Debt in England, and befides the dividends from time to time paid on the Capital Stock of your Peti- tioners, according to the direclions of the faid Aft, paffed in the 33d year of the ^ reign of His prefent Majefty. That in 1793 a Bond Debt in England of your Petitioners amounted to the fum of ££"3,200,000, or thereabouts, fmce which, by an Aft paffed in the year 1797,3' they have been empowered to raife money by increafmg their Capital Stock, by the amount of jf 2,000,000 ; but your Petitioners have not availed themfelves of that refource, but, under the authority of feveral Afts of Parliament,"" they have raifed money upon bond, and their Bond Debt in England now amounts to the fum of ^5,409,325, but your Petitioners are entitled by law to iffiie bonds to the amount of jf 7,000,000 in the whplf. That the annual intereft upon ^he prefent amount of the Indian Debt now amounts to the fum of ,^1,600,000, or thereabouts, and as by the terms of the loans on which fuch money was raifed, the creditors are entitled to receive their intereft by payment of money in India, or by bills of exchange to be drawn and made payable in London, at rates favourable to the holders, and judging from the amount drawn within the laft half year,' your Petitioners eftimate that the annual fum of .^1,500,000, or thereabouts, wilt be neceflary to be provided annually in London for the payment of fuch intereft, befides which, although the feveral fums of money payable in refpeft of the Reduced and Conlblidated Annuities, (on which the faid fum of ^£'2, 500,000 was raifed by virtue of the fiiid Aft of the laft SefTion of Pai-liament) for Intereft and Sinking Fund attendant thereon, amounting altogether to the annual fum of ^242,820, are cxprefsly charged upon the revenues of the territorial acquifitions in the Eaft Indies, yet your Peti- tioners are bound by the faid Aft, at all events, to pay fuch fums of money into the Bank of England, in manner in the faid Aft mentioned ; and your Petition- ers will alfo be obliged to provide, in London, the intereft and other charges which may be attendant upon any further Loan which may be neceiTary, in con- fequence of the faid further fum of .^^2,202,000, part of the Indian debt, for which Bills of Exchange, drawn upon your Petitioners, are now outftanding j and it is eftimated that political charges (including payments to be made to the Creditors of the late Nabobs of the Carnatic) coniequential upon the Indian ter- ritory, to the annual amount of ,^910,000, or thereabouts, will be to be defrayed in England ; and as, from the beft eftimates which can be made, there appears but little reafon to expeft (without a coiifiderable reduftion of the military expences of your Petitioners in India) that there (hould be any fufficient furplus revenue to be remitted for thofe Purpofes, your Petitioners apprehend that the punftual difcharge of the pecuniary obligations of your Petitioners in relation thereto, as well as the payment of the intereft upon their Bond Debt in England, and the Divicifnds on their Capital StocL, will depend moft eiTentially upon the trade to be carried on by your Petitioners. 39 27 Geo, 3. cap. 31. "t" 340^0. 3. cap. 4; ; 47 Geo. 3. cap. 41. feft. 2. 51. That, and CHAIRMAN, &c.- of The EAST INDIA COMPANY. 79 I'hat, in purfuance of feveral Afts of Parliament fince 1807/' your Petitioners have increafed their Bond Debt in England by the funi of i^2. 409,-^25 ; and in purfuance of an Aft of Parliament pafled in the 50th year of the Reign of His prefent Majefty, your Petitioners have borrowed Exchequer Bills of the Public to the amount of ^^i, 500, 000 ; and by virtue of an Aft pafled in the laft Seflion, as herein-before mentioned, your Petitioners raifed on Loan, by way of Reduced and Confolidated Annuities, the fiim of ^^3, 500,000 ; and all fuch fums of money, together wiih the faid fum of ^6,289,405, which has arifen from the fur- plus profits of the trade carried on by your Petitioners, as herein-before mentioned, have been abforbed by payment of debts and expences incurred in refpeft of the territorial acquifitions in India. That in the expeditions on the part of the Britifli Nation againft the European Enemies of His Majefly, and by advances tor His Majefty's Navy and other pub- lic fervices, your Petitioners have incurred very large expences, which they fub- mit they are entitled to be reimburfed by the public ; and your Petitioners com- pute, that after allowing fuch fum as your Petitioners are indebted to the public for the loan of Exchequer Bills, to the amount of j€'i, 500,000, as herein-before mentioned, purfuant to an Aft for that purpofe, paflTed in the lafl Seflion of Par- . liament,"" and after allowing fuch fums as your Petitioners are indebted to Hfs Majefliy for troops in India and for recruiting, the fum of ££"25294,426, at the .leaft, will be found due to your Petitioners. Your Petitioners have now exhibited, they hope, with candour, the real fitua- tion of their affairs, and of the Britifli trade and relations with the Eafl; Indies and China ; your Petitioners do not prefume to offer an opinion whether any other arrangements than thofe which have taken place would have led to refults equally or more advantageous than have arifen to their Country, but they apprehend it to be quite undeniable that the privileges entrufted to your Petitioners have pro- 'duced a large quantity of pofitive benefit to the Britifli Empire, and they fubmit that any material change in the Indian fyfliera would be. matter of experiment, for •which there can be no fufiicient data from which its fuccefs can be calculated j your Petitioners feel it to be their duty to exprefs to this Honourable Houfe their Tincere opinion that the public interefl: cannot be better confulted than by continuing your Petitioners, as the fole organs and channel both for the trade with and the 'Government of India, upon the principles' efl:abliflied by the Aft of the 33d year of His Maiefl:y's reign, with fuch variations as to the financial appropriations, and ;n fonie other points of detail, as prefent circumftances require, and experience has pointed out ; your Petitioners aik not for an exciufive Trade upon the narrow principles of monopoly, for the mere purpiife of commercial gain ; they have under their care interefts of a much more extended and liberal nature, which it is xheir duty to attend to; your Petitioners are ready to become parties to any ar- rangement which fliall be confiflent with the rights of your Petitioners, and the fecurity of Britifli India, and which will not deprive your Petitioners of the means of fulfilling their pecuniary engagements with the public and individuals, or the performance of the fuiiftions which may be continued or allutted to them ; they nope they will not be deemed prefumptuous in humbly fubmitting their opmion, ccnfidered and re-confidered, that the opening the Trade with China in any degree would endanger its exiftence akcgether ; and your Petitioners iiave at no time con- templated any alteration even in the Export Trade to the Eaft Indies without con- fideralle doubt and hefitation ; but your Petitioners are firmly of opinio;', that the unreflirr.ined liberty of importation from that Country, otherwife than through the medium of the Efl;abliflmients of your Petitioners in London, would produce effefts which every well-wiflier to his Country mufl: deprecate, and which would put to extreme hazaid any pledge on the part of your Petitioners for the good government of India, or the performance of their obligations ; your petitioners ■*• 47 Oeo.3. cap. 41. feft. 2 ; 51 Geo. 3 ; 52 Geo, 3. cap. 135. ♦^ ^o Geo. 3. cap. 135 ; ^1 Geo. 3, fubmit 8o CORRESPONDENCE between PRESIDENT cf INDIA BOARD f'lbniit that they would not be juflified in becoming parties to any fyflem which, on confideration, (hould appear to them likely to prove an illufion. As your Petitioners do not venture to anticipate what may be the determination of this Honourable lioufe upon the queftion hereby fubmitted to its decifion, your Petitioners hope that they will be excufed for humbly Itating what, in the event of the diffolution of the prefent fyflem, they conceive would be found to be the Tights of your Petitioners, as well aa their fair pretenfions upon the jufiice and liberality of Parliament ; the abfolute right of your Petitioners, for their own ufe, to a confiderable part of the Forts, Towns, Iflands, Territories, and Rights ■which they have acquired abroad, never has been queftioned, and your Petitioners believe it to be unquedionable ; and, notwithftanding the claim made for the Public to other parts of the territorial acquifitions and revenues of your Petition- ers, they entertain a ftrong hope that the property, as well in thofe parts which were acquired by conqueft under the powers of Peace and War lawfully exercifed by your Petitioners, as in thofe parts which were otherwife acquired, would be found to belong to your Petitioners, in the fame way as any other property within His Majeily's Dominions belongs to the owners thereof, fubjed to the fovereignty and allegiance due to His iVIajefty ; but even fuppofmg it ihould be determined contrary to the fenfe and expeftations of your Petitioners, touching their rights, that thofe places were not the property of your Petitioners, your Petitioners fubmit, that in that cafe, if the poifeflion were to be affumed on the part of the Public, your Petitioners would have a juft right to reimburfement of the Expences •which they have incurred in acquiring and maintaining them, and in making the Fortifications, and Civil and IMilitary Buildings and Works, vi^hich your Petition- ers have ere6led and improved upon them, with a compenfation for the fervices and rilk of your Petitioners during the long time which they have had the poflef- fion and government of fuch Territories, under the confirmation of Parliament, and all other charges incurred by your Petitioners relative to fuch Territories ; thefe expences and charges amount to many millions of money ; your Petitioners alfo fubmit, that they have a juft claim to be reimburfed all the fums they have paid in difcharge of debts contrafted on account of the Territories, and to be in- demnified againft all other debts in refpe£t of them, and which now remain un- dilcharged. Your Petitioners do not queftion, as an abftradl principle, the right of any of His Majefty's fubjeft s to trade with any part of His Majefty's dominions ; but they humbly fubmit, that it cannot be contended that any perfons can have a right, except with the confent of your Petitioners, to ufe the Settlements, Fadories, and Seats of Trade, or to avail themfelves of the means and facilities, moral and phyfical, which your Petitioners, at a great expence and rifk, have created or acquired, and now at great current charge maintain, for the purpofes of coni- merce and civil intercourfe. Your Petitioners therefore moft humbly pray that this Honourable Houfe will take the premifes into its confideration, and make fuch provifion, as in its wifdom it {hall fee fit, for continuing the Government of the territorial acquifitions in the Eaft Indies in your Petitioners, and for fettling the Trade to the Eaft Indies and China, and other places, from the Cape of Good Hope to the Streights of Magellan, according to the prefent fyftem ; or that your Petitioners may have fuch relief in the premifes, as their cafe may require. And your Petitioners, as in duty bound, will ever pray, &c. It was then moved to amend the faid Petition, by leaving out the following words, viz. " Your Petitioners fubmit that they would not be juftified in becoming " parties to any fyflem, which, on confideration, fhould appear to them likely ta " prove an illufion." And the queflion being put, that the words propofed to be left out, ftand part of the Petition, the fame was carried in the afSrmative.^ It and CHAIRMAN, &c. o/The EAST INDIA COMPANY. 8 1 It was then moved, and, on the queflion, Refolved, That this Court approve the above Petition. The Draft of the Petition to the Honourable Houi'e of Commons, for payment of the debt due from the Pubhc to the Company, and for other pecuniary relief, in which Petition fundry amendments, as alfo propofed by the Court of Directors fince the laft General Court, and now fubmitted to the General Court, was read. To the Honourable the Commons of the United Kingdom of Great Britain and Ireland, in Parliament aflembled ; The humble Petition of the United Company of Merchants of England trading to the Eaft Indies j Sheweth, That loans of very large fums of money have heretofore been raifed in India on the credit of your Petitioners, for the defence and protection of the Britifli pof- feflions there, by the terms of which loans the creditors were entitled to the option of being paid off in India, or by Bills of Exchange to be drawn upon London, and upon and in confequence of fuch obligations becoming due, bills to the amount of i€'i3, 104,924. have been drawn, fince the year 1807, upon your Peti- tioners, payable in London; and the fum of ^£10,902,924. part of the fum of if 13,104,924. has been diicharged by your Petitioners ; and ^2,202,000 refidue thereof, now remains outftanding ; and the larger part of the bills drawn for the fame will become due previous to the month of March 1814 j that, for the pur- pofe of enabling your Petitioners to pay the faid Bills of Exchange which they have fo difcharged, to the amount of iPi 0,902,924. they borrowed Exchequer. Bills of the Public to the amount of .^1.500,000. in purfuance of an Aft of 50 Geo. HI. fbr granting to His Majefty a (um of money to be raifed by Exche- * quer Bills, and to be advanced and applied in the manner and upon the terms therein mentioned, for the relief of the United Company of Merchants of Eng- land trading to the Lilt Indies ; and your Petitioners alfo raifed a fum of i^2, 500,000. upon Reduced ^'j. per centum Annuities and Confolidated £t^. per centum Annuities, refpedively transferrable at the Bank of England, in purfuance of an Aft of 52 Geo. III. for advancing ^2,500,000. to the Eaft India Company, to enable them to difcharge part of the Indian Debt. That, by another Aft of 52 Geo. III. to amend an Aft of 50 Geo. TIL for granting a fum of money to be raifed by Exchequer Bills to be advanced and applied in the manner and upon the terms therein mentioned, for the relief of the United Company of Merchants of England trading to the Eaft Indies, it is enafted, that it Ihall be lawful for the Commiffioners of His Majefly's Treafury, or any three or more of them, to carry to the credit of your Petitioners, in re-payment of the lums advanced under the provifions of the faid Aft of 51 Geo. Ill, any fum or fums ot money which fhould have been advanced or difburfed by your Petitioners in the Eaft Indies, for His Majefty's Navy, or any public fervices. That your Petitioners compute, that after allowing, in account, fuch fum as your Petitioners are indebted to His Majefty for the loan of the faid Exchequer Bills, that the fum of ^2,294.426. at the leaft is now due to your Petitioners, in refpeft of money which has been advanced or difburfed by your Petitioners, in the Eaft Indies, for His Majefty's Navy and other public fervices. That by virtue of an Aft of 37 Geo. III. to enable the Eaft India Company to raife money by further increafing their Capital Stock, and to extend the Provifions now exifting refpefting the prefent ftock of the Company to the faid increafed Ifork, your Petitioners are now authorized to raife money by increafing their capital ftock by the fum of .^2,000,000 ; but your Petitioners have not raifed any money in exercife of the powers contained in the faid Aft. That your Petitioners are now authorized by law to raife money in England, upoa Bonds, to the amount of .^7,000,000 j and they have iflued Bonds to the C33-) X amount 82 CORRESPONDENCE between PRESIDENT of INDIA BOARD, ^c. amount of ^5,409,325. and are at liberty to iffue further Bonds to the further amount of ,^1,590,675. and by an Ad of 51 Geo. III. to enable the Eafl; India Company to raife a further fum of money upon Bond, inftead of increafing their capital ftock, and to alter and amend an A£l of 47 Geo. III. rekitive thereto, it is provided, that when your Petitioners fhall have railed, under and by virtue of the faid Att of T^y Geo. III. and of the faid Aft of 47 Geo. III. and of that Adt, fuch fums of money as together Ihould amount to the fum of ^4,000,000. fterling ; from thenceforth it Ihould not be lawful for your Petitioners to raife any further fum of money upon Bond ; and all money, which from thenceforth Ihould be raifed by increafe of Capital Stock, under and by virtue of the faid firft-mentioned Ad, fhould be applied in difchargc of the faid Bond Debt, until the faid Bond Debt created by virtue of the faid AS. of 47 Geo. III. or of that Ad, together with the money to be raifed by increafe of Capital as aforefaid, fhould be reduced to the fum of ^4,000,000. flerling. That, upon an eflimate of the probable receipts and payments of your Petitioners in England, including, amongfl the receipts the faid fum of ^€"2, 294, 426, fo due from the Public to your Petitioners, as herein-before mentioned, it appears that it will be advantageous and neceflary to the concerns of your Petitioners, that they fhould be authorized to raife the fum of ^2,500,000 on Loan, in a ditFerent manner from that in which they may now raife money, for the purpofe of enabling them to difcharge the faid Bills of Exchange, to the amount of ^2,202,000, drawn in liquidation of the Indian Debt, to provide for their other current pay- ments, and to enable your Petitioners, as circumftances may render it advifeable, to reduce the amount of their Bond Debt, without increafing their Capital Stock. Your Petitioners therefore moft humbly pray, that this Honourable Houfe will be pleafed to dired the payment of the faid fum of ^2,294,426. fo due by the Public to your Petitioners, as herein-before is mentioned, and to grant to your Petitioners fuch relief, in the premifes, as to this Honourable Houfe fhall feera meet. And your Petitioners, as in duty bound, will ever pray, &c. It was then moved, and, on the queflion, Refolved, That this Court approve the above Petition. Drafts of Petitions to the Honourable Houfe of Commons, for leave to prefent the above Petitions, were alfo read and approved. And it was, on a motion, Refolved, That the Company's Seal be affixed to fair tranfcrlpts of all the faid Petitions, and that they be prefented to the Honourable Houfe of Commons accordingly. The Court then, on the queflion^ adjourned. UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE UNIVERSITY LIBRARY This book is DUE on the last date stamped below ®^^ 3 1 1952 KECE ! 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