In 1827-8 No. 25, of papers, &c. presented by H. M. command, Feb. 1830.

Or, to use the words of Mill, "a balance of legitimate claims "which there is nothing whatsoever in the shape of property to meet." -Mill, Vol. III. p. 724.

In the three last periods of this statement, it will be observed, that the capital stock is rated at 7,780,000l., being the amount actually subscribed and paid in. But if the Company are to make good the capital stock, as prescribey in 33 Geo. 3. cap. 52. s. 115., at the rate of 2001. for every 1001. stock, it will of course encrease their debt in proportion, and consequently make the deficiency in each period, 4,220,000l. more.

CHAPTER V.

STATE OF THE COMPANY'S FINANCIAL AFFAIRS FROM 1792-3 TO 1828-9.

On the principle of surplus revenue and territorial debt being utterly incompatible, the contents of preceding chapters (unless indeed the official documents in print are fallacious or imperfect) can scarcely, I presume, leave a doubt as to the position here contended for, viz., that the Company's debts at home and abroad are wholly chargeable to commerce up to 1792-3; in other words, that sums equivalent to the loans and surplus revenue together must have been absorbed by commercial losses and expenditure; since it is clear they were not required for territorial purposes, or would not have been required, had the disbursements of territory been confined to her own exclusive wants, and not mixed up with supplies to sustain the broken down fortunes of a bankrupt associate. With the establishment of this fact, the remainder of our task will be

easy; as, from this period, we are furnished with authentic accounts, annually laid before Parliament, the results of which, as far at least as regards the revenue or political concerns admit of no misconception.

Although this highly important fact had escaped the notice of the principal authorities in England, the affairs of India, subsequent to the acquisition of the Dewanny, would seem to have attracted considerable attention on the part of the legislature. Mr. Moreau informs us that, from the year 1765 to the peace of Paris in 1783, almost every session of parliament was productive of new laws intended to secure the due appropriation of the Company's annual receipts; to simplify their government abroad by establishing a proper subordination between their different Presidencies; to guard their commerce against the illicit practices of their own servants, by subjecting them to a stricter responsibility; and by rendering them amenable to the courts at home, as well as the tribunals specifically appointed for the administration of justice abroad.* But these statutes contain a great deal more than is here adverted to, as will be noticed presently.

The series is continued in Russell's volume of East India Acts; but in a more complete state, and down to the latest period, in Tyrwhitt and Tindal's Digest of the Statutes. Still in no part of the parliamentary proceedings do we find any specific enquiry, or attempt made, to ascertain the origin, or real cause of the Company's debts.

In 1793, Mr. Dundas's eloquence, or rather, as Mill observes, his "confident assertions, "so potent in men of influence and power to

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captivate the general mind with a prospect "of Indian prosperity, had generated a belief "that a great fountain, whence a perennial "stream of wealth would flow upon the British

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nation, was by the wisdom of its rulers se"cured to that nation in India. Estimates "were formed with all the care of accuracy, "or rather of moderation, by which it was "made to appear that the surplus, exhibited by ihe accounts of the year immediately passed, would, in future years, rather encrease than diminish. And with profound solemnity an appropriation, as if for perpetuity, was proposed of a large superabounding sum which would, it was said, be annually received from India. The eyes of men were successfully dazzled; and when Mr. Dun"das called out to them, Will you stop the

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"tide of so much prosperity for untried theo"ries?' those who knew but little either about "the theory, or the prectice of the case, that "is, the greater number, were easily made to believe, that there was a great certainty of securing what they were told was the actual influx of wealth, if they persevered in the present course; a great danger of losing it, "if they allowed themselves to be drawn, by "delusive prospects, into another.” *

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Under these solemn assurances, and the general belief of their being well founded, it was easy to persude parliament, that it became their duty to make a just distribution of this "perennial stream" which seemed to promise an inexhaustible harvest of fruits. It was accordingly provided, that the surplus revenue— after defraying all charges of a military nature, the interest on debt, and the civil establishments—should be appropriated to provide investments to the amount of one crore of Rupees annually at the least, with liberty to encrease the said investments, in proportion as Indian debt should be redeemed, discharged, or transferred from India to Great Britain; and lastly, in payment of debts in India, or for other purposes; whilst