whether the contract for such loan be made or carried into execution within or beyond the territories under the Government of the East-India Company, that in either case the contract of the house would be void, and that the European-born partners would be liable to be prosecuted for a misdemeanor.

These opinions were communicated by the Court of Directors to their Government in Bengal in April 1823, who were desired to make the same public.

In the month of June 1825, the Marquis of Hastings obtained permission to bring in a bill for the purpose of amending and explaining the 13th Geo. III, as to the rate of interest in India. The second reading took place on the 22d of June, when Lord Hastings stated, that the object of the bill was to define the scope of the enactment, which limits the rate of interest to be taken on money lent in India; and to declare that the clause adverted to did not extend to persons residing within the territories of the native sovereigns. His Lordship accordingly proposed, that the following question should be put to the judges, on the East-India Company's Affairs Bill :

"Whether, according to the true construction of the 30th "section of an act passed in the thirteenth year of the reign of "his late Majesty, entitled, An Act for establishing certain "Regulations for the better Management of the Affairs of the "East-India Company,' the same limits the rate of interest to "be taken for loans of any monies to twelve pounds for one "hundred pounds by the year, such loans being made, or "advanced, within the dominions of a native independent so

66

vereign by British subjects domiciliated and residing within "such dominions."

The question was answered in the negative on the 27th June, when the bill submitted by the Marquis of Hastings to the House of Lords was read a second time, beyond which stage no farther proceeding has taken place upon it. The opinion of the judges was communicated to the Bengal Government by the Court of Directors in August 1825. The existing laws are contained in the acts of 1773 and 1797.

LAWS.

No Person to take Interest above Twelve per Cent. per Annum.

take on loan of

offence treble the

LAWS.

1773.

13 Geo. 3,

No person shall (1) And be it further enacted by the authority aforemonies above the said, that no subject of his Majesty, his heirs and sucrate of £12 per cessors, in the East-Indies, shall, upon any contract cent. per annum. which shall be made from and after the said first day c. 63, § 30. -Persons by covin accepting of August, one thousand seven hundred and seventyloans, &c., shall four, take directly or indirectly, for loan of any monies, forfeit for every wares, merchandize, or other commodities whatsoever, value; one above the value of twelve pounds for the forbearance moiety to go to of one hundred pounds for a year; and so after that the Company, and the other to rate for a greater or lesser sum, or for a longer or the prosecutor. shorter time; and that all bonds, contracts, and assurances whatsoever, made after the time aforesaid, for payment of any principal or money to be lent or covenanted to be performed upon, or for any usury whereupon or whereby there shall be reserved or taken above the rate of twelve pounds in the hundred, as aforesaid, shall be utterly void: and all and every such person or persons whatsoever who shall, after the time aforesaid, upon any contract to be made after the first day of August, one thousand seven hundred and seventy-four, take, accept, and receive, by way or means of any corrupt bargain, loan, exchange, shift, or interest of any wares, merchandizes, or other thing or things whatsoever, or by any deceitful way or mean, or by any covin, engine, or deceitful conveyance, for the forbearing or giving day of payment for one whole year, of and for their money or other thing, above the sum of twelve pounds for the forbearing of one hundred pounds for a year, and so after that rate for a greater or lesser sum, or for a longer or shorter term, shall forfeit and lose, for every such offence, treble the value of the monies, wares, merchandizes, and other things so lent, bargained, exchanged, or shifted, with costs of suit, one moiety whereof shall be to the said United Company, and the other moiety to him or them who will sue for the same in the said Supreme Court of Judicature at Fort William, in Calcutta, or in the Mayor's Court in any other of the said United Company's settlements where such offence shall have been committed, by action of debt, bill, plaint, or information, in which no essoin, wager of law, or protection, shall be allowed; and in case no such action, bill, plaint, or information, shall have been brought and prosecuted with effect within three years, that then it shall and may be lawful to and for the party aggrieved to sue and prosecute for recovery of all sums of money paid over and above such rate of interest. (2) And be it further enacted, that no informer or plaintiff shall or may compound or agree with any person or persons that shall offend, or shall be surmised

Persons making compositions contrary to the

meaning of the

§ 31.

LAWS.

1773.

13 Geo. 3,
c. 63,
§ 31.

1797.

c. 142,

$ 28.

discretion of the

to offend, against this act, for any offence committed, act, liable to be
or pretended to be committed, before answer made in imprisoned at the
the said Supreme Court, unto the information or suit in court.
that behalf exhibited or prosecuted, nor after answer, but by the order
or consent of the said court, on pain that if any person or persons
shall offend in making of any composition or agreement, contrary to
the true intent and meaning of this act, or shall, by colour or pretence
of process, or without process, upon colour or pretence of any matter
of offence against this act, make any composition, or take any money,
reward, or promise of reward, for himself, or to the use of any other,
without order or consent of the said court, that then he or they so
offending, being thereof lawfully convicted, shall, for every such
offence, be liable to be fined and imprisoned, at the discretion of the
said court.

No Person to lend Money to Native Princes, without Consent of the
Court of Directors or Governor in Council.

Directors or the

meanor.-Secu

(3) And whereas the practice of British subjects From Dec. 1, 37 Geo. 3, lending money, or being concerned in the lending of 1797, no British subject to lend the same, or in transactions for the borrowing money any money, or be for, or lending money to the native princes in India, concerned in raising any for has been productive of much mischief, and is the native princes, source of much usury and extortion: and whereas the without consent wholesome orders of the Court of Directors of the of the Court of United Company of Merchants trading to India, have governor in not been sufficient to restrain and repress the same: council; and any person doing so and whereas it is highly desirable that such practices may be prosecutshould be prevented in future; be it therefore enacted, ed for a misdethat, from and after the first day of December next, rity for money no British subject shall, by himself, or by any other lent contrary person directly or indirectly employed by him, lend hereto to be void. any money or other valuable thing to any native prince in India, by whatever name or description such native prince shall be called, nor shall any British subject, either by himself, or by any other person directly or indirectly employed by him, be concerned in the lending any money to any such native prince, nor shall any British subject be concerned either by himself or by any other person, either directly or indirectly, in raising or procuring any money for any such native prince, or as being security for such loan or money, nor shall any British subject lend any money or other valuable thing to any other person for the purpose of being lent to any such native prince, nor shall any British subject, by himself or by any other person, either directly or indirectly, for his use and benefit, take, receive, hold, enjoy, or be concerned in any bond, note, or other security, or assignment, granted or to be granted by any such native prince, after the first day of December next, for the loan, or for the re-payment of money, or other valuable thing, without the consent and approbation

approbation of the Court of Directors of the East-India Company,
or the consent and approbation of the governor in council of one of
the said Company's governments in India, first had and obtained in
writing; and every person doing, acting, or transacting, or being
concerned in any actings, doings, and transactions, contrary to this act,
shall be deemed and taken to be guilty of a misdemeanor at law,
and shall and may be proceeded against and punished as such, by
virtue of this act, before any court of competent jurisdiction; and
all bonds, notes, assignments, or securities for money, of what kind
or nature soever, taken, held, or enjoyed, either directly or indirectly,
for the use and benefit of any British subject, contrary to the true
intent and meaning of this act, shall be, and the same are hereby
declared to be null and void to all intents and purposes.
On complaint (4) And be it further enacted, that when and so
to the govern-
often as any information shall be given, or complaint
ments in India
made to any of the Governments of the said United
Company in the East-Indies, of any person having
acted contrary to the provisions of this act, such Go-
vernments shall forthwith lay the case before the Com-
pany's law officers at the settlement where it arises,
who shall take the same into their consideration, and
report their opinion thereupon, whether the same is a
proper case for prosecution (together with their reasons
for the same), which report shall be transmitted home to the Court
of Directors by the first convenient opportunity.

for acting contrary to this act,

the case to be laid before the law-officers, whose report shall be transmitted to the

Court of Directors.

LAWS.

1797.

S7 Geo. S, c. 142,

$ 28.

§ 29.

MILITARY FORCES-KING'S AND

COMPANY'S.

THE military force in India is composed of King's regiments serving in that country, and of the Company's European and native troops. Irregular corps have been raised and disbanded, from time to time, according to the exigencies of the public service.

The legislative enactments, under which a King's force is stationed in India, will be first noticed.

King's Troops.

Prior to 1781, the expense of sending King's troops to India was borne by the public. In that year the negotiations took place which led to the territorial possessions and revenues, with the exclusive trade, being vested in the Company till the year 1793.

On the 25th June 1781, twenty-two propositions were approved by the General Court of Proprietors, and ordered to be submitted to Lord North as the basis for an arrangement. The eighth proposition provided for the payment of two lacs of current rupees per annum by the Company on account of every regiment, consisting of one thousand men, sent or to be sent by his Majesty to India, on the requisition of the Company, so long as they possessed the territories of Bengal, Bahar, and Orissa, which provision was incorporated in the seventeenth section of the act of 1781, 20th Geo. III, cap. 65.

A correspondence between the Board of Commissioners and the Court of Directors took place in 1785, respecting the European forces, and with the Chancellor of the Exchequer, Mr. Pitt, in 1786, as to the demands against the Company on account of the expenses of the King's troops; but it was not till 1787 that those measures were adopted which led to the declaratory act of the following year. In the latter In the latter part of