Making a total advanced in India, up to 1804,

In making up the account of the sums advanced in India, on account of the home concern, the following must be added: Advances for Ceylon,

Making a total advanced for the home concern, up to April, 1804

£.11,829,542

1,182,472

£13,012,014

The total actual amount of the supplies received in India, by the sale of goods, in bullion and stores, and for bilis drawn on the directors in the same period, appears to be

The balance is

for which London is indebted to India.

£9,864,086 3,147,025

It may be said, that the company had a right to expect aid from the territorial resources of India; that the revenues have increased since April, 1798; and that the financial distresses which existed at that period were very soon removed.

The events which have occurred since April, 1798, must be recollected. The first of these, in point of time, was the war against Tippoo Sultaun; at the same time that a large army was put into the field on the frontiers of Oude, to oppose Yemaun Shah. The army of Fort St. George did not return to its quarters till the month of December, 1799; and in the month of May, 1800, the army of Fort St. George was assembled again, and put down the rebellion of Doondeah Waug. Before this service was completed, an expedition was fitted out against Egypt; and, in a very few months after the troops had returned from Egypt, the armies of Fort St. George and Bombay were assembled and increased, in consequence of the disturbances in the Mahratta empire.

Besides all this, the pay of the King's and the company's troops, serving under Fort St. George, was increased; and the civil and judicial establishments, under that government, were placed on a more just scale than they had been before.

During these great and extensive military operations, a variety of others were necessarily carried on in different parts of the peninsula, each of which had a tendency to increase the military charges.

According

According to this statement, it appears, that a very con siderable proportion of the debt in India had been incurred at different times by the purchase of investment. If the account between the revenue of India and the company had been kept in the form of a merchant's account, or inthe manner in which the East India Company keep their account against the public, the interest upon each sum borrowed for the commerce of the company would have been carried to account against them from the moment at which such sum was borrowed.

In this view of the case, the interest, at 10 per cent. upon 2,858,2067., being the amount laid out in India BEYOND Supplies from England, and surplus revenue previous to 1798, would be annually £. 285,820 2,126,560

And for eight years, to 1806,

The interest upon the sums borrowed since 1798, each for their respective number of years to 1806,

Making a total of

633,005

£. 2,759,565

It is evident that all these sums have been charges upon the revenues, and of course have contributed to swell the amount of the existing debt.

There is also in the amount of the debts incurred during Lord Wellesley's government, as before stated, a sum of 1,200,000/. on the revenues of the Carnatic, with interest; which debt was incurred previously to Lord Wellesley's arrival. The mode in which this debt was incurred is as follows: The registered creditors, under the act of 1784, had a right to certain portions of the annual payments made to the company by the Nabob, under the treaty cons cluded with that prince by Sir Archibald Campbell.

In the year 1791, Lord Cornwallis assumed the Nabob's countries, and applied all the revenues to defray the civil and military charges of the Company. The creditors applied to the Company, and the decision was not passed upon the subject, till after the year 1798; when the principal which had been due in 1791, with interest calculated to that period, was added to the Company's bonded debt of Fort St. George.

But there is another view which may be taken of the debt of 27,722,5917., which is supposed to be due in India, on the 30th of April, 1806; 16,669,7451. of which have been incurred since the 30th of April, 1798.

The

The assets in India, in April, 1798, were

In April 1806, supposing them the same as in
April 1894, they were

Increase of assets in that period is

Subtract the increase of assets from the amount

of the increased debt since 1798, and the remainder will be

(which is the net increase of debt)

£. 9,922,903

17,252,903 7,229,899

9,440,252

3,147,725

Set off against the net increase of debt, the sum of being the sum applied to investment, to supplies to China, aud to his Majesty's and to the Company's chartered ships, beyond the amount of the exports and supplies from Europe, and the result will be, that the debt incurred in India, on account of civil and military establishments and services. of all descriptions, including the Egyptian expedition, is 6,292,5271.* in eight years, from April, 1798, to April, 1806.

This view is liable to the same exception as the former, on account of the errors in the accounts of the assets; but the error is not of very great magnitude. In this account of debt, supposed to have been incurred on account of political expences, is included the amount of supplies to Bencoolen and St. Helena, which, in the six years, from 1798 to 1804 only, amount to £.1,096,736.

Upon a review of the accounts which have been laid before Parliament, at different times, it appears, that large sums have been expended in India, for services chargeable to his Majesty's government; the Egyptian expedition was carried on at the expence of the Company; and expences have been incurred in India on account of expeditions against the Danish settlements, and of their capture; for all of which expences the Company have a claim upon the public.

But as these expences have been incurred in India, and kave been a charge upon its revenues, the amount allowed

* Increase of debt as above, for service in India Deduct Egyptian expedition

Carnatic debt, with interest, as stated in Lord
Castlereagh's printed Budget

1,800,000

2,702,861

Remains for the net debt incurred on account of
Indian Expences, during eight years

£.3,589,666

VOL. III. 1805-6.

4 F

for

for them, and paid, or to be paid, to the Company, ought fairly to be set off against the amount of the debt, as well as the sums advanced to his Majesty's ships, and for the government of Ceylon already noticed.

There are other sums also which now constitute a part of the debt in India, the value of which the Company have received in England.

The total charge of the Molucca Islands, during the time they were in the possession of the British government, ought to be carried against the home concern in the analysis of the debt in India; as nearly the whole of the produce of the Moluccas was sent home, and sold for the benefit of the East India Company.

After this view of the debt, it is to be hoped that its amount, considering all the circumstances which have contributed to raise it, will not prove that the Company's affairs have been managed in an improvident manner; and that the public will see, in the general situation of the Company's finances, ample means of reducing this debt to any amount that may be deemed advisable,

If the mode proposed of drawing a proportion of the debt to England be adopted, and the saving of interest, which will be the result of this operation, be added to the annual interest, calculated to amount to 250,000. upon the principal now in the hands of the commissioners for the redemption of the debt, this revenue alone will make an impression upon the debt, which must soon reduce it to the level to which every body wishes to see it reduced.

Notwithstanding the large amount of the debt, and he embarrassments occasioned in India, at different times, by the great demands for the various services which were in progress, the Company's credit was improving from the mo ment of Lord Wellesley's arrival in India, to the moment of his departure.

On the first of June, 1798, the 12 per cent. paper in Bengal bore a discount of toper cent. ; on the 29th of July, 1805, the 12 per cents. were all paid off, and the 10 per cent. paper bore a premium of 4 per cent. In June, 1798, the 8 per cent. paper was at a discount of from 121⁄2 to 15 per cent. ; in the beginning of 1805, the 8 per cents were at par, and would have continued so, if it had been possible to send out specie from England at an early period in the season. In July, 1805, they were at a discount of from 34 to 34 per cent.; in June, 1798, the 6 per cent.

paper

paper was at 21 per cent. discount: in 1805, the 6 per cents bore a discount of only 84 per cent.

This improving state of the credit is to be attributed to the public confidence gained by the regularity and publicity of all the financial operations of the government; by the measure of establishing funds at Fort St. George and in Bengal, for the redemption of debt; and by the judicious measures adopted for the improvement of the re

venue.

The amount in possession of the commissioners for the redemption of the debt, on the 30th of April 1805, as appears in page 90 of the printed accounts, is 3,151,0647. which sum, at 8 per cent. interest, will give nearly 250,0007. per annum for the reduction of the debt.

The improvements effected in the revenue during Lord Wellesley's government also deserve notice. Exclusive of the increase of revenue, by territorial acquisitions, and by subsidies, it appears, that every branch of the revenue of 1798, under the Bengal government, which, in the five preceding years, had decreased to the amount of 234,5197. was improved, under Lord Wellesley's government, as follows:

The total increase of revenues during ley's administration, in different parts

4 F 2

Lord Wellesof India, is £.6,608,239 Th