§
Sir Arthur Wellesley
rose and said—Before I proceed, sir, to consider the financial state of India, which is more properly the subject for discussion this night, I shall advert to the political subjects which have been referred to by other gentlemen. The hon. gent. opposite (Mr. Francis) has asked, what right Scindeah had to the fortress of Gwalior, and the territory of Gohud, which have been ceded to him by the late treaty concluded by sir G. Barlow? The hon. gent. must recollect that, subsequently to the treaty of peace concluded by Mr. Hastings with Mandajee Scindeah (the predecessor of Dowlut Rao Scindeah), that chieftain attacked the Rajah of Gohud, and deprived him of all his territories. The family of Scindeah had remained in possession of those territories, and of the fortress of Gwalior, from that time, until the war which commenced in 1803; when the fort of Gwalior was taken, and the country of Gohud fell into the possession of one of the detachments under the orders of the commander-in-chief, lord Lake.—Under the 9th article of the treaty of peace which I was the instrument of concluding with Doulut Rao Scindeah, at the end of the year 1803, the territory of Gohud and the fortress of Gwalior, were to remain in the possession, and at the disposal of the British government. This will be obvious to any man who reads that article, or the conferences in the negociations of the treaty, which are published; and indeed the operation of the 9th article upon this territory was acknowledged by Scindeah's ministers. The governor-general, lord Wellesley, however, having adverted to the situation in
1061
which Scindeah was placed by the treaty of peace in relation to other powers in India, and particularly in relation to his rival Holkar, had deemed it proper to take into consideration the expediency of restoring to Scindeah the territory of Gohud and the fort of Gwalior. I was of opinion, that Gohud and Gwalior ought to be restored to that chief; and I believe that the instructions to the resident with Scindeah upon this subject have been laid before this house. The reason for which the cession was not made until the conclusion of the late treaty by sir G. Barlow, is referable to the state of Scindeah's councils from the middle of the year 1804, until a late period in 1805. The cession was a matter of favour from the British government to Scindeah, and was to be so considered. The committee will observe, that it is so considered by sir G. Barlow. But Scindeah's councils were so badly composed, and their conduct was so suspicious, from the period before mentioned, that no concession could be made to Scindeah, without incurring the risk of having it attributed to motives, which never ought to influence the conduct of the British government in India. For this reason the cession was not made by lord Wellesley. The hon. gent. seems to think the fortress of Gwalior important, as a defence of the company's territories in that quarter. The fortress of Gwalior would defend and cover nothing, excepting itself: the company's territories are not to be defeaded by fortresses, but by armies in the field. Fortresses are useful as points of support, and as magazines to these armies; and in this point of view Gwalior would be useful, if the object of the company was, or was likely to be, the invasion of Scindeah's territories in Malwah. But it is of no use with a view to the defence of the company's territories, unless garrisoned by a large body of troops, which body of troops would be more profitably employed in the field.—Upon the whole, the committee will observe, that I consider sir G. Barlow's treaty with Scindeah to have been consistent with the spirit of that which I was the instrument of concluding at the close of the year 1803; and that the late gov.-gen. lord Wellesley, intended to have carried into execution that part of its stipulation which refers to Gwalior and Gohud.—Upon a former night I explained to the house, that I did not consider it to be a treaty of peace, as, in point of fact, we had never been at war with Scindeah since
1062
1803. It is a treaty to amend and explain some articles of the former treaty of peace; and I conceive, that every article of it deserves approbation.—In respect to the treaty with Holkar, I do not conceive that there can be any objection to it. The hon. gent. (Mr. Francis) has asked, whether sir G. Barlow was not obliged to conclude that treaty by the financial distresses of the government. Approving, generally, of the treaty, and not knowing the instructions from home under which sir C. Barlow acted, I do not conceive it necessary to look for the cause of his concluding that treaty, in any necessity arising from the state of the finances. The hon. gent. knows well, that when war has been carried on for 3 years in India, it is not very easy to procure money on loan; and I certainly do not mean to extenuate the financial difficulties and distresses which existed in the year 1805, as represented by the noble lord (Morpeth), and by the papers on the table. These difficulties certainly existed; but in possession of such a revenue as is enjoyed by the British government in India, at the present moment, and in command of such large resources, I do not conceive that any temporary embarrassment, or difficulties of a pecuniary nature, could exist to such a degree, as to induce sir G. Barlow to conclude a treaty of which lie himself did not approve, and of which he should not think that his superiors in England would approve.—I have already said, that I was not disposed to dispute the financial statements made by the noble lord (Morpeth), as exhibited in the papers upon the table; but it must be recollected, that these statements refer to a period of most extensive warfare, which was carried on in all parts of India at the same time, and for which the preparations and exertions made were on a scale superior to any ever made upon any former occasion. There was not an officer in command of any detachment, who could prove, to the satisfaction of government, that any addition to the means already in his power would increase his capability of performing service, who did not immediately receive orders to make the increase which he required: and it will be found, that the service performed was proportionate to the expense incurred. With this recollection in our minds, it will not appear that a surplus charge, amounting, upon an average, to about two millions sterling, is very large for such a period, and for
1063
such exertions.—The subjects which require explanation in the state of the Finances of India, are—the Deficiency of the Revenues, in comparison with the Charges (including the Interest of the Debts)—and the great magnitude of the debts. My wish is, to shew 1st the real situation in which the Finances of India will be in time of peace; 2d, the real state of the Indian Debt in April 1805, (at the close of lord Wellesley's government,) and in April 1806; and, 3dly, to compare the debt with the assets, and shew in what manner it has been incurred.—It appears by the account No. 2, presented on the 3d of June, 1806, page 94, that the revenues of India, for the year 1805-6, were estimated at 14,279,533l.; the charges at 14,645,844l.; the interest of the debt at 1,823,040l.; the commercial charges, not added to the invoices, at 199.806l.; the supplies to Prince of Wales's Island, Bencoolen, and St. Helena, 266,800l.; making a total of charge int 169,354,900l.; and leaving a deficiency to be provided for by loan, of 2,655,957l. It must be observed, however, of this estimate; 1st, that the revenues are not stated to be so high as they really are; and 2dly, that the charges are for a period of war, in which it must be acknowledged, that they would be higher than in a period of peace. If this be the fact, it cannot be ,supposed to be a very unsatisfactory state of affairs, that the charges of a great empire, such as the British empire in India undoubtedly is, should exceed the revenues and resources by 2,700,000l. sterling in one year, in a period of very extensive warfare. This will be observed more forcibly, if the financial state of Great Britain, or of any other country in Europe, is adverted to.—But the duration of war ought not to be calculated upon; intelligence of peace has already been received, and the finances in
Estimate of the late Acquisitions in India, from Conquest and Subsidy, taking the Revenues at the lowest possible scale. |
REVENUE. |
Gross Revenue. |
Net Revenue |
In Sonat Rupees. |
IN THE DOAB |
— |
— |
— |
Etawa |
13,91,818 |
|
|
Furruckabad |
6,30,084 |
|
|
Seharunpore |
3,42,351 |
|
|
Ditto under Moradahad |
2,99,015 |
|
Ditto under the resident at Delhi |
5,50,273 |
|
|
|
35,13,541 |
|
|
Deduct Tasseeldary, and other allowances, .pensions, mofussil charges,—and balances irrecoverable, estimated altogether at 20 per cent. |
7,02,708 |
|
|
|
28,10,833 |
|
|
Sumroo Begum's Jagheer |
10,00,000 |
|
|
1064
India must be viewed in reference to the state of affairs which must exist in consequence of the restoration of tranquillity.—In endeavouring to form an opinion of the financial state of India, in a period of peace, it is necessary to ascertain what will be the revenues in peace, and what the charges. In the year 1802–3, the company were in possession of all the territories which they possess at present, excepting the territories acquired by the treaties with the Guickwar, and by the treaties of Bassein, and of peace concluded with the Mahrattas, in Dec. 1803. The produce of that year will form the fairest datum from which an estimate may be formed of the probable future resource. An average of any number of years cannot be taken; because, in 1801, the provinces in Oude were not in the company's possession: because, in 1803-4, there existed a drought in all parts of India, which affected particularly the produce and revenues of the ceded provinces in Oude, and in some degree those of the provinces ceded by the Nizam on the Toombudra and Kistna rivers, and those in the Carnatic;—and because, in 1804-5, the revenues of the ceded provinces in Oude must have been affected by the incursion of Holkar's armies.—The amount of the revenues in 1802-3 will afford an estimate of what they will be in future in time of peace; although there is reason to believe, that they will considerably exceed that amount.—The Revenues in India in the year 1802–3, as appears by the accounts before parliament, were 13,464,537l. To this sum, in forming an estimate of the future probable resource of the government in India, must be added the new subsidies, and the revenues of the British territories gained by the company since the year 1802-3, of which I will read an estimate:
1065
WEST OF THE JUMMA |
|
|
|
Agra, exclusive of the Pergunnahs, Dholepore, &c. at first reserved to Scindeah, and now ceded to the company |
|
10,64,255 |
|
|
Districts settled by the resident at Delhi |
4,25,594 |
|
|
Syer of Delhi, &c. |
1,83,689 |
|
|
Districts unsettled, suppose |
4,25,000 |
|
|
|
20,98,538 |
|
|
Deduct 20 per cent. as above |
4,19,707 |
|
|
|
|
16,78,831 |
|
In Hindustan rupees of sorts |
|
54,89,664 |
52,70,076 |
CUTTACK |
13,51,405 |
|
|
Deduct 20 per cent. as above |
2,70,281 |
|
|
Arcot rupees |
|
10,80,124 |
10,37,879 |
BROACH |
10,00,000 |
|
|
Deduct 20 per cent. as above |
2,00000 |
|
|
Estimated equal to Sonat rupees |
|
8,00,000 |
8,00,000 |
Total of Revenue of rupees of sorts |
73,70,788 |
|
|
Ditto in Sonat rupees |
|
|
71,07,955 |
Sicca rupees |
|
|
66,81,478 |
Or, pounds sterling |
|
|
835,184 |
SUBSIDIES. |
|
Gross Revnue. |
Net Revenue. |
In Sonat Rupees. |
FROM THE GUICKWAR. |
|
— |
— |
— |
Free gift |
|
|
2,00,300 |
|
Subsidy |
|
|
6,97,275 |
|
Syer Revenue in the Attaweesy |
|
60,000 |
|
|
—in Guzerat |
|
66,000 |
1,26,009 |
|
FROM THE PEISHWAR. |
|
|
|
|
Bundlecund Gross Revenue |
|
15,72,974 |
|
|
Deduct 20 per cent. as above |
3,14,595 |
|
|
|
Stipend to Shumsheer Bahadur |
4,00,000 |
7,14,595 |
|
|
In rupees of sorts |
|
8,58,379 |
|
|
In Sonat rupees |
|
8,24,047 |
|
|
Subsidy in the Attaveesy |
|
6,50,300 |
|
|
Ditto in Guzerat |
|
1,72,300 |
|
|
Syer Revenue in the Attaveesy |
|
1,10,000 |
|
|
Ditto Guzerat |
|
8,000 |
|
|
In rupees supposed equal to Sonats |
|
|
9,40,000 |
17,64,047 |
ADDITIONAL SUBSIDY. |
|
|
|
— |
From the Rajah of Travencore |
|
|
|
|
3,48,000 |
Total Subsidies Sonat rupees |
|
|
|
31,35,322 |
Or Sicca Rupees |
|
|
|
29,47,203 |
Or, Pounds Sterling |
|
|
|
368,400 |
Total Revenues Pounds Sterling |
|
|
|
1,203,584 |
ABSTRACT. |
|
|
|
|
ACQUISITION |
Sonat Rupees. |
Sicca Rupees. |
Pounds Sterling. |
Total £. Sterl. |
In Revenue |
71,07,955 |
66,81,478 |
835,184 |
In Subsidies |
31,35,322 |
29,47,293 |
368,400 |
1,203 584 |
This will make the future revenue of British India amount to 14,668,119l.—In the commencement of the year 1802-3, a revision was made of all the establishments under the governments of India, with reference to a state of peace. It does not appear, however, that the establishments of European troops in particular, were reduced to a lower scale than that on which
1066
they ought to be left at all times, and on which they exist at present. Neither does it appear to be necessary to increase the number of European troops, beyond the number which were in India in the year 1802-3, in consequence of the additional territory acquired since that year. The native military establishments were fixed upon a scale, in the year 1802–3, cal
1067
culated for the existence of peace in India; and the continuance of the war in Europe, under the circumstances in which the enemy stands in respect to his marine, does not appear to render necessary any addition to these establishments. The actual charges of the year 1802-3, were higher than the amount at which they were estimated and fixed, with a view to peace.—In Oct. 1802, Holkar gained the victory at Poonah over the troops of the Peishwah and Seindeah, in consequence of which the government of Fort St. George immediately thought it necessary to assemble the troops acting under that presidency, which afterwards marched to Poonah early in 1803.—The army at Bombay was likewise placed on the war establishment; part of it in the field; and both armies were considerably augmented.—My noble friend (lord Castlereagh) has calculated the extraordinary expenses, in the last six months of 1802-3, at 500,000l. above the charges of the peace establishment; and in forming an estimate of the future charges of India, in a period of peace, upon the actual charges of the year 1802-3, it is proper to strike off 500,000l. of that amount. With this sum subtracted from them, the actual charges of the year 1802-3, together with those rendered necessary on account of the treaties of peace and subsidy, and by the acquisitions gained since that period, may be deemed fair data on which an estimate may be formed of the probable future charges of British India in time of peace.
The actual Civil Charges in 1802–3 were |
£4,599,372 |
The actual Military Charges were |
6,360,614 |
From which subtract |
500,000 |
Remains |
5,860,614 |
supplies for Bencoolen, &c. |
*196,848 |
Making a total of charge in 1802–3 |
£10,656,834 |
To this must be added the additional civil charges to be incurred in consequence of the late acquisitions, of which I shall also read an estimate.
Estimate of the Annual Increased Civil and Military Charges incurred in India since the Year 1802–3. |
PENSIONS AND JAGHEERS. |
|
Rups. of Sorts. Son. Rups. |
Scindeah and his family |
8,00,000 |
Royal family at Delhi, including the expence of irregular corps |
17,00,000 |
*These charges are greater by 19,662l. than those stated by lord Castlereagh, in his speech of the 19th of July, 1804; (see vol. 2. 1151)
1068
|
Rups of Sorts. |
Son. Rups. |
Begum Sumroo |
10,00,000 |
|
Total in Rupees of Sorts |
34,00,000 |
or 32,64,000 |
CIVIL ESTABLISHMENTS. |
Salary and establishments of seven judges and magistrates |
3,92,000 |
|
Ditto of six collectors |
2,23,200 |
|
Residency at Delhi |
1,44,000 |
|
Civil charges at Bombay |
40,800 |
|
|
— |
8,00,000 |
Total of civil charges, &c. in St Rs. |
40,64,000 |
|
Ditto in Sicca Rupees |
|
38,20,160 |
Total of Ditto in Pounds Sterling |
|
£477,520 |
MILITARY CHARGES. |
IN BENGAL. |
|
|
Two regiments of native cavalry, at 20,000 rupees per month |
40,000 |
|
Seven ditto of native infantry, at 30,000 each per month |
210,000 |
|
Horse artillery |
2,000 |
|
Extra cattle to the increase |
10,000 |
|
Off-reckonings |
17,000 |
|
Wear and tear of two regiments of cavalry |
5000 |
|
Military stores,contingencies, buildings, &c. not fixed in the amount |
25,000 |
|
Per month |
3,09,000 |
|
Per month |
|
37,08,000 |
FORT ST. GEORGE. |
One regiment of native cavalry, including off-reckonings |
22,100 |
|
Four regiments of native infantry, at 29,000 each. |
116,000 |
|
Off-reckonings |
6,400 |
|
Military stores, and other charges |
15,000 |
|
Wear and tear of horses for one regiment |
2,500 |
|
Per month |
1,62,000 |
|
Per ann. |
19,44,000 |
|
BOMBAY. |
One regiment of infantry |
29,000 |
|
Off-reckonings, &c. |
1,600 |
|
Per month |
30,600 |
|
Per ann. |
|
3,67,200 |
Total increase of the military charges in Sonata Rupees |
|
60,19,200 |
Ditto in Sicca Rupees |
|
56,40,000 |
Ditto in Pounds Sterling |
|
£705,000 |
ABSTRACT. |
Civil Charges, Pensions, &c. |
Sonant Rupees. |
Sicca Rupees. |
Pounds Sterl. |
Total £ Sterl. |
40,64,000 |
38,20,160 |
477,520 |
Military Ditto. |
|
1,182,520 |
60,19,200 |
56,40,000 |
705,000 |
1069
The increase of the military establishments required in India, and which I have now estimated beyond those of 1802-3, are two regiments of native cavalry, and seven regiments of native infantry, in Bengal; one regiment of native cavalry, and four regiments of native infantry on the establishment of fort St. George; and one regiment of native infantry on thr establishment of Bombay.—In the general distribution of the armies in India, which was made subsequently to the treaties of peace, concluded at the end of the year 1803, it was settled, that the army of Bengal supply the troops required for the subsidiary force to serve with Scindeah (being six battalions), and the subsidiary force to serve with the ranah of Gohuo, (being three battalions), as well as troops for the company's territories under the presidency of Bengal, including the acquisitions in Bundlecund, those made from Scindeah in the Doab and in Hindustan, and the province of Cuttack.—By the same distribution the government of fort St. George was to supply, as it had formerly done, the troops to serve with the Nizam; and all those required for the southern parts of the Peninsula, including the garrisons and provinces on the coast of Malabar (with the exception of Goa), and one regiment of cavalry for the Peishwah;—and the government of Bombay was to supply six battalions for the subsidiary force to serve with the Peishwah, three battalions to serve with the Guickwar, a garrison for Bombay, a garrison for Goa, and troops to occupy the territories ceded by the Peishwah and the Guickwar in Guzerat, and in the neighbourhood of Surat.—The establishments in the year 1802-3 having been formed on the lowest scale, compatible with the tranquillity and security, and with a view to external peace, it stands to reason, that they could not supply the additional troops required from them, without some additions. The establishment of Bengal required an addition of six battalions to serve with Scindeah, and three to serve with the ranah of Gohud.—The smallest number that could be required for the protection to be given to the cities of Delhi and Agra, to the person of the king, and to the territories in the Doab, in Hindustan, and in Cuttack, is two regiments of native cavalry, and five battalions of native infantry; which numbers complete the augmentation (viz. fourteen battalions) made to the Bengal array since 1802-3.—By the late arrangements made
1070
in India with Scindeah, it appears that the subsidiary troops for that chieftain, and for the ranah of Gohud, will not be required for those services; and if it had been intended to make a more favourable statement of the finances in India, than their situation warrants, it would have been possible to strike off from the estimate of increased military charges, (amounting, as I have already shown, to upwards of 60 lacks of Rupees,) the expence of four regiments of native infantry, at least: but it is apprehended, that the service of a portion of these troops will be required in. Bundlecund for some time; and, at all events, that the number of two regiment of native cavalry, and five battalions of native infantry, is scarcely sufficient to perform the additional services which will be required from the Bengal army, in consequence of the additions made to the territories under the Bengal government, by the treaties of peace concluded at the end of the year 1803.—In consequence of the distribution made in the year 1804, the duties of the provinces, on the coast of Malabar, which, in 1802-3, had been performed by the army of Bombay, tell to the lot of the army of Fort St. George. These duties had always required eight battalions; and, when, in consequence of the distribution which I have noticed, it had become necessary to remove the Bombay troops from those provinces to the northward, an augmentation of the army of the Fort St. George, to the amount of four regiments, became necessary. The regiment of cavalry to be supplied to the peishwah, also required that a regiment should be added to the establishment of Fort St. George. The duties which fell upon the Bombay army by the distribution of 1804, required for the subsidiary force with the peishwah six battalions, for the subsidiary force with the guickwar three battalions, and garrisons for Bombay, Goa, Broach, Surat, and troops to occupy the territories of Guzerat and in the neighbourhood of Surat, ceded by the peishwah, and the guickwar, and conquered from Scindeah; the detailed number for each of which services, it is not necessary to mention. It will be observed from this statement, that the additional services required from the armies of Fort St. George and Bombay, in the year 1804, and at the present moment, beyond those required in the year 1802-3, exclusive of the garrison for Goa, are one regiment of cavalry, and six battalions for the peishwah, three bat
1071
talions for the gwickwar, and troops for the conquered and ceded territories in Guzerat. Accordingly, the addition made to the military establishments, the expences of which are included in the estimate of 60 lacks, are one regiment of cavalry and four regiments of native infantry for Fort St. George, and one regiment for Bombay; making, in the whole, ten battalions. No reductions of these establishments can, in my judgment, be made with safety. The total of charges, therefore, for a future peace establishment, including the charges of 1802-3, and adding the civil and military charges occasioned by treaties of subsidy, and by the consequences of the Mahratta war, will stand thus:
Charges of 1802–3 |
£10,656,834 |
Additional civil charges, rendered necessary by treaties of subsidy, peace, &c. |
477,520 |
Additional military charges |
705,000 |
Total future charges |
11,839,054 |
The revenues, as before stated, will be |
14,668,119 |
Leaving a surplus revenue of |
£2,328,765 |
From this sum must be deducted the interest of the debt, as stated in the account, No. 2, page 93, 1,823,040l.; to which sum must be added the interest on the sum to be borrowed to supply the deficiency in the year 1805-6, viz. 2,655,957l., being at ten per cent. 265,595l.; making the total interest of the debt, in 1806, 2,088,635l.; and the actual surplus, alter providing for every demand, will be 740,150l. In calculating this surplus, no credit is taken for any augmentation of revenue beyond 1802-3; although it is certain, that some branches, such as salt and opium, must be, and have been already augmented; the revenues of the provinces gained by the peace, will also produce more than they have been estimated at. The actual Debt in India, in April 1805, was, according to account, No. 1. p. 90, 28,197,498l., including arrears of establishments, debts not bearing interest, and demands upon the company of every description. To this debt must be added the deficiency of resource, as stated in page 93, for the year 1805-6, being 2,655,957l.; and the total gross debt, on the 30th of April, 1806, will be 30,873,455l. From this sum ought to be subtracted 3,151,064l., (being the amount in possession of the commissioners for the redemption of the debt, on the 30th of April, 1805,) and the balance will give 27,722,391l., for the net debt of India, on the 30th of April, 1806; of which sum, the
1072
amount bearing interest, appears to be 24,250,824l.—When this debt, however large, is compared with the assets in India, and with the value of the forts, houses, warehouses, &c. in India, (valued in No. 23, p. 78, at 9,994,208l., all necessary for carrying on government, which have cost money, and would cost money to the company's successors, whoever they might be, supposing the transfer of the territory ever to take place,) and when to these sums are added the amount of the company's claims upon government for money expended in India, on account of the public, it may fairly be stated, that the actual value of the property of the East-Indite company in India, exceeds the amount of their debts.—I am aware of an error in this statement, as in this view of the debts and assets, the amount in the possession of the commissioners of the sinking fund ought to be subtracted from the amount of the quick stock, on the 30th of April, 1804. But there is an error also in the assets. The quick stock is estimated only to April 1804, and is stated, in p.72, to amount to 17,252,399l. But in the calculation of these assets, there is an omission of 12,48,600 pagodas in the cash at Fort St. George. It appears by the paper, No. 19, p. 63, that the balance remaining in the different departments at Fort St. George, on the 30th of April, 1804, was 57,19,605 pagodas; whereas credit is given in the account of the assets to the same period, for only 44,71,005 pagodas. The difference between these sums ought to be credited to the assets in April 1804, viz. 12,4.8,600, or 500,000l.—The additional sum in the hands of the commissioners of the sinking fund, on the 30th April, 1805, ought likewise to be added to the assets calculated to that period. The sum stated, in p.48, to be in the hands of the commissioners for the reduction of the debt on the
30th of April, 1804, is |
Ct. Rs. 2,80,00,563. |
On the 30th of April, 1805, it is |
Ct. Rs. 3,15,10,648 |
Difference to be added to the assets calculated up to April 1805 | 35,10,085 |
In estimating the assets to April 1806, it is proper to add to them the sum which will be in the hands of the commissioners of the sinking fund in April 1806, viz. |
|
Interest upon the sum of 3,15,10648 current rupees, for one year, from April 1805, to April 1806, at 8 per cent., is about |
25,00.000 |
1073
To the assets then, as they stood in April 1804. viz, | £17,252,399 |
Must be added the sum at Madras omitted |
500,000 |
The additional sum stated to be in the hands of the commissioners of the sinking fund, in April 1805 |
351,008 |
The interest upon 31,510,648, Rs. or £3,151,064, for one year to April 1806 |
250,000 |
And the total of the assets, in April 1806, will be | £18,353,407 |
This view of the Debt and assets of different descriptions, however, is taken only as a general one, and not by any means to be relied upon. Measures undoubtedly ought to be taken to reduce the amount of the debt; but if, from circumstances, those means should be impracticable, this general statement will serve to shew, that in case of the transfer of the territory, upon the conclusion of the charter, there is value in India to the amount of the debt. But it may be contended, that this statement is no justification of the amount of the debt, which, from 1793, when it was 7,362,190l., has increased to be, in April 1806, 27,722,391l.; of which sum, 16,669,745l. have been incurred since 1798, under the administration of the late gov.-gen. marquis Wellesley. In order to understand the mode in which this debt has been incurred, it is necessary to advert to the state of the company's affairs, in the year 1798.
The revenues at that time were |
£8,059,580 |
The charges, including supplies to Bencoolen, &c. |
765,654 |
The interest of the Debt was |
603,926 |
Leaving a deficiency of resource or a surplus net charge, of |
194,700 |
The Debt in 1798 was |
11,032,645 |
The assets in India were |
9,922,903 |
This state of the resources in India had been occasioned by a laudable desire to increase the investment as much as was possible, which will be seen by a review of what had passed between the years 1793 and 1798.
In April 1793, the revenues of India were |
£8,294,399 |
The charges, including Bencoolen, &c. were |
6,155,968 |
The interest of the Debt was |
526,205 |
The Debt was |
7,362,190 |
The assets were |
8,834,538 |
The surplus revenue, after providing for all charges, exclusive of receipts for sales, &c. was |
1,612,226 |
In the course of the five years between 1793 and 1798, the following events occurred to increase the charges in India: there was war in Europe; an expedition
1074
was fitted out against Mauritius; and another against Manilla; Pondicherry and Cochin were taken; and maritime expeditions were sent against Ceylon, Malacca, and the eastern islands. It was necessary to keep up large establishments in the conquests made; and salaries were paid to the civil and military servants of our enemies who became our prisoners. During the same period of time, the company's military establishments in India were new-modelled, and this occasioned an increase of expense. The civil and judicial establishments in Bengal were fixed on the just scale on which they exist at this day; which at that time occasioned an increase of annual expense to a very considerable amount. Accordingly it appears, that the actual charges of the civil and military establishments in 1798, exceeded the actual charges of the civil and military establishment in the year 1793, in the amount of 1,372,209l., and the supplies to Bencoolen, &c. of 1798, exceeded those of 1793 in the amount of 102,477l. But the efficient cause of the state in which the finances were found, in the year 1798, was the continuance to send borne investment at the high rate at which it had been fixed in the year 1793, notwithstanding that the charges of India had necessarily increased, and the revenues had decreased to the amount of 234,519l. By reference to the accounts, it will be found, that in the five years between 1793 and 1798, the cost and charges of investments sent home to
Europe, was |
£9,898,794 |
Supplies to China |
339,444 |
Amount advanced in India to the king's and company's ships during the same period, was |
551,952 |
Making a total disbursed on account of London, of |
10,784,190 |
The amount of supplies received from Europe,in the same period, for bills drawn, stores, merchandise, export sales, and bullion, was |
3,744,425 |
Leaving a balance of |
7,039,765 |
against London. |
|
It appears, by what is above stated, that the charges in India, between 1793 and 1798, had increased considerably; but there was, upon the 5 years, a surplus of receipt of revenue, beyond the charges, amounting to 4,181,559l.; which, being deducted from the balance, before stated against London, leaves the sum of 2,858,206l., which must have been borrowed in India, at high interest, for the purchase of investment.—It will be found, that the debt incurred in the 5
1075
years, from 1793 to 1798, was |
£3,665,455 |
The increase of the assets in those 5 years was |
1,088,365 |
Those in 1793 being |
8,834,538 |
Those in 1798 being |
9,922,903 |
And the actual increase of the debt, in comparison with the assets, was | £2,557,090 |
In a minute which lord Wellesley recorded in June 1798, he reviewed the state of the Finances in India; and pointed out the real cause of the increase of Debt in the following words: "From that paper it appears, that, allowing for a supply in the course of the year 1798-9, to Fort St. George, of 75,00,000 sicca rupees, or 937,500l., and to Bombay, of 25,00,000, or 312,500l., the deficiency for which provision must be made, in order to meet the expected demands at the three presidencies respectively, will be, in Bengal, 1,28,68,360; Madras, 43,45,351; Bombay, 41,67,611. The total deficiency, therefore, at the three presidencies, together, will amount to sicca rupees, 2,13,81,321, Or 2,672,655l. The immediate causes of the estimated deficiency, will appear obvious from the annexed accounts. By account No. 27, the sums appropriated, in India, to the purposes of investments and commercial charges, in the years 1796-7 and 1797-8, amounted to 4,96,15,165 current rupees; having been, in 1796-7, 2,30,70,125, and, in 1797-8, 2,65,45,040; and exceeding the amount of bills drawn upon the Court of Directors from India, within the same Period, by the sum of 3,83,39,263 current rupees; the bills drawn on the Court of Directors having been, in 1796-7, 79,88,699, and, in 1797-8, 32,87,203; and by account No. 3, it appears, that the proposed investment, for 1798, from all our India possessions, including the supply promised to Canton, amounts to 2,40,88,000 current rupees.—But the accounts Nos. 4, 5, and 6, shew, that the total sum applicable to the purchase of investment from the revenues in India, and produce of sales of imports from Europe, was, in 1796-7, 81,43,858; in 1797-8, 96,44,550, and is estimated to be, in 1798-9, 78,20,133. This annual demand, for the purpose of investment, upon a scale so far exceeding the annual means of the three presidencies, is the principal cause of the present deficiency.— The comparative view which I have taken of our expences and receipts, in examining the causes of our actual distress, sufficiently proves, that many of
1076
those causes are of an absolute permanent nature, and that most of them must be expected to continue for a considerable time; that the investment, at once the most powerful cause of our temporary distress, the main spring of the industry and opulence of the people committed to our charge, and the active principle of the commercial interests of the Company, is more likely to be increased than to be diminished in any future year; and, consequently, that the embarrassments of our finances must be progressive, if some means be not devised for aiding the resources of this presidency, which must now be considered as the general treasury and bank of our Indian empire, furnishing supplies for the services of all our other possessions in India, as well as a large and increasing proportion of the capital employed in the trade to Europe and to China.—The mode of supplying this assistance, which I would recommend, has already been suggested by the accountant-general, and seems to unite several advantages with relation to the interests both of India and Great Britain: it is comprised in the following propositions.—That it be respectfully recommended to the hon. the Court of Directors, to take the earliest occasion of sending out supplies to India to the amount of 85 lacs of rupees, or 1,062,500l. in addition to their usual consignments, by an increase of their annual export of British manufactures and produce to Bengal and Bombay, to the full extent of the indents from Bengal and Bombay respectively; and by an annual supply of silver bullion to Bengal, to the amount of 50 lacs, or 625,000l. The supply of bullion to be provided in part, by a proportinate reduction in their usual consignment to China.—The increase of the export of British manufacture and produce to Bengal and Bombay will, probably, afford considerable relief to the finances of this government; as, by reference to the account of sales of imports from England, it appears, that the averrage profit upon the imports from England sold in Bengal, in ,1796-7, has been above twenty per cent., and at Bombay thirty-five per cent., and that the demand is increasing. This measure would, at the same time, obviously become highly beneficial to the interests of Great Britain.—The export of silver to Bengal would be more advantageous to the Company than
1077
the payment of bills, at the present high rate of exchange; a rate which will probably continue for a considerable period of time. Such a stock of silver would be a relief both to public and private credit, and would invigorate all the financial operations of this government. From this resource, supplies might easily be furnished to Canton, through the medium of the trade in opium.—If the sale of British manufactures in Bengal, and at Bombay, should equal the general expectation, an additional supply of near a crose of rupees, 1,250,000l., would accrue to this presidency, from the combined result of the two proposed measures. This supply would be nearly equal to the probable amount of the permanent deficiency of our resources.—Nothing would be more just, than to appropriate a proportion of the profits arising from the sale amount of the investment in Europe, to the augmentation of the Funds necessary for the purchase of investment in India. Unless some such plan be adopted, or some other means devised of furnishing aid to the resources of Bengal from England, it is evident, that a reduction, in the amount of the Indian investment, will soon become inevitable; for it cannot be denied, that a very large proportion of the capital, which has passed into Europe, through the medium of Indian commerce, for these last two years, and is about to pass in the present year, has been, and must be, created by loans of money raised in India under every circumstance of disadvantage. The increase of the investment, therefore, during the period described, must be viewed as representing, not the surplus revenue, but the increased debt of India. The circulating capital of India, which is known to be very inconsiderable, in proportion to the productive and commercial powers of the country, cannot supply so large a drain for any long period of time, even in the event of peace; but if the war in Europe should continue, the difficulty of raising money for the public service, by loans to be negotiated in India, must become nearly insurmountable.—At that early period of time, the governor-general earnestly urged the company to provide for the provision of investment, by increasing the amount of the supplies sent from Europe. They were still continued, however, upon a scale much too low for the amount of the investment,
1078
notwithstanding the efforts which were undoubtedly made by the noble lord who, at that time, presided at the board of controul, and by my noble friend lord Castlereagh), and by the Court of Directors, to send out larger sums.—By a reference to the papers before this house, it will be found, that the total amount of the sums laid out in investment, from
April 1798, to April 1804, was |
£9,619,348 |
Supplies to China |
1,761,263 |
Of advances to the King's and to the Company's chartered ships, in the same period |
448,931 |
Making a total advanced in India, up to 1804 |
11,829,542 |
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 |
1,182,472 |
Making a total advanced, for the home concern, up to April 1804 |
£13,012,014 |
The total actual amount of the supplies received in India by the sale of goods, in bullion and stores, and for bills drawn on the directors, in the same period, appears to be 9,864,086l. The balance is 3,147,725l. for which London is indebted to India. 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 Zemaun Shah. The army of Fort St. George did not return to its quarters till the month of Dec. 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 disturbance in the Mahratta empire.—Besides all this, the pay of the king's and 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
1079
of which had a tendency to increase the military charges.—According to this statement, it appears, that a very considerable proportion of the debt in India had been incurred at different times, by the purchase of investment. If the account between the revenues of India and the Company had been kept in the form of a merchant's account, or in the 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 2,858,206l., being the amount laid out in India beyond supplies from England, and surplus revenue previous to 1798,
would be, annually |
£285,820 |
And, for eight years, to 1806 |
2,126,560 |
The interest upon the sums borrowed, since 1798, each for their respective number of years, to 1806 |
633,005 |
Making a total of |
£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 1,200,000l. on the revenues of the Carnatic, with interest; which debt was incurred in a former period, 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 concluded with that prince by sir A. 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 for payment 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 27,722,391l., which is supposed to be due in India, on the 30th April, 1806; 16,669,745l. of which have been incurred since the 30th of April, 1798.
The assets in India, in April, 1798,were |
£9,922,903 |
In April 1806, supposing them the same as in April 1804, they were |
17,952,299 |
1080
Increase of assets in that period is |
7,229,493 |
Subtract the increase of assets, from the amount of the increased Debt since 1798, and the remainder will be |
9,440,252 |
Which is the net increase of Debt. Set-off against the net increase of Debt the sum of |
3,147,725 |
being the sum applied to investment, to supplies to China, and 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 6,292,527l. 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 expenses, is included the amount of supplies to Bencoolen and St. Helena, which, in the six years from 1798 to 1804 only, amount to 1,096,736l. 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 expense of the company; and expenses have been incurred in India on account of expeditions against the Danish settlements, and of their capture; for all of which expenses, the company have a claim upon the public.—But as these expenses have been incurred in India, and have been a charge upon its revenues, the amount allowed 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 Co.—After this view of the Debt, it is to be hoped that its amount, considering all the circumstances which have con-
1081
tributed 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 250,000l., 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 the 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 moment 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 ¾ to ¼ per 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 front 12½ to 13¼ per cent.; in the beginning of 1805, the 8 per cent. were at par, and would have continued so, if it bad 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 3¼ to 3¾ per cent.; in June 1798, the 6 per cent. paper was at 21 per cent. discount; in 1805, the 6 per cents. bore a discount of only 8¼ 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 revenue.—The amount in possession of the commissioners for the redemption of the Debt, on the 30th of April, 1805, as appears in p. 90 of the printed accounts, is 3,151,064l., which sum, at 8 per cent. interest, will give nearly 250,000l. 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
1082
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 234,519l., was improved, under lord Wellesley's government, as follows:
|
1798 |
1803-4 |
Increase. |
|
S. Rupees. |
S. Rupees. |
S. Rupees. |
Mint. duties |
64540 |
68042 |
3502 |
Post Office |
140398 |
248127 |
147729 |
Stamp duties |
92416 |
547137 |
454721 |
Licenses for sale of spirituous liquors |
47531 |
138209 |
90678 |
Fees and Fines |
6606 |
96049 |
89443 |
Provincial police |
427928 |
456217 |
29289 |
Land revenue |
29825983 |
31805421 |
1979438 |
Salt |
10302783 |
15374223 |
5071440 |
Opium |
2084184 |
3989200 |
1905016 |
Customs |
1251469 |
3228865 |
2023396 |
Increase of the old revenues of Bengal during lord Wel lesley's government |
Sicca Rs. 10794652 £ Sterl. 1,349,331 |
The total increase of revenues during lord Wellesley's administration, in different parts of India, is 6,608,239l.; the revenues having been, in 1798, 8,059,880l.; and those estimated by me for the future, 14,668,119l. The general commerce of the country is improved equally with the revenue. It appears, by the public documents before this house, that the commerce of India is now able to supply the China market so effectually, as nearly to preclude the necessity of sending bullion to China; and large stuns in specie are now imported into India from that country.—After the view which I have taken of the general situation of the affairs of the East-India Co. in India, I hope that it will be found, that their debt, although large, and certainly pressing in a very great degree upon their prosperity, and upon the attention of those who have the management of their affairs, is not of a magnitude to create any danger; that it appears, that there are means of reducing it, at no very great distance of time, to a moderate amount, and that, under the auspices of the noble lord (Morpeth), by a just attention to the system of economy which he has recommended, and by reverting to the system and scale of establishments fixed in 1802-3, with such augmentations as the change of affairs has rendered necessary, and as I have already described, the revenues of that great empire will be found to afford ample means. of restoring the finances.