PART I.

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THE WORKS

OF

THE RIGHT HONOURABLE

EDMUND BURKE

IN TWELVE VOLUMES

VOLUME THE EIGHTH

[Illustration: Burke Coat of Arms.]

LONDON

JOHN C. NIMMO

14, KING WILLIAM STREET, STRAND, W.C.

MDCCCLXXXVII

CONTENTS OF VOL. VIII.

NINTH REPORT OF THE SELECT COMMITTEE OF THE HOUSE OF COMMONS ON

THE AFFAIRS OF INDIA. JUNE 25, 1783.

OBSERVATIONS ON THE STATE OF THE COMPANY'S AFFAIRS IN INDIA 3

CONNECTION OF GREAT BRITAIN WITH INDIA 41

EFFECT OF THE REVENUE INVESTMENT ON THE COMPANY 56

INTERNAL TRADE OF BENGAL 75

SILK 83

RAW SILK 88

CLOTHS, OR PIECE-GOODS 99

OPIUM 116

SALT 142

SALTPETRE 170

BRITISH GOVERNMENT IN INDIA 173

ELEVENTH REPORT OF THE SELECT COMMITTEE OF THE HOUSE OF COMMONS ON

THE AFFAIRS OF INDIA. WITH EXTRACTS FROM THE APPENDIX.

NOVEMBER 18, 1783 217

ARTICLES OF CHARGE OF HIGH CRIMES AND MISDEMEANORS AGAINST WARREN

HASTINGS, ESQUIRE, LATE GOVERNOR-GENERAL OF BENGAL: PRESENTED TO

THE HOUSE OF COMMONS IN APRIL AND MAY, 1786.--ARTICLES I.-VI.

I. ROHILLA WAR 307

II. SHAH ALLUM 319

III. BENARES

PART I. RIGHTS AND TITLES OF THE RAJAH OF BENARES 327

PART II. DESIGNS OF MR. HASTINGS TO RUIN THE RAJAH OF

BENARES 339

PART III. EXPULSION OF THE RAJAH OF BENARES 354

PART IV. SECOND REVOLUTION IN BENARES 380

PART V. THIRD REVOLUTION IN BENARES 386

IV. PRINCESSES OF OUDE 397

V. REVOLUTIONS IN FURRUCKABAD 467

VI. DESTRUCTION OF THE RAJAH OF SAHLONE 484

NINTH REPORT

OF THE

SELECT COMMITTEE OF THE HOUSE OF COMMONS

ON

THE AFFAIRS OF INDIA.

June 25, 1783.

NINTH REPORT

From the SELECT COMMITTEE [of the House of Commons] appointed

to take into consideration the state of the administration of

justice in the provinces of Bengal, Bahar, and Orissa, and to

report the same, as it shall appear to them, to the House,

with their observations thereupon; and who were instructed to

consider how the British possessions in the East Indies may

be held and governed with the greatest security and advantage

to this country, and by what means the happiness of the

native inhabitants may be best promoted.

I.--OBSERVATIONS ON THE STATE OF THE COMPANY'S AFFAIRS IN INDIA.

In order to enable the House to adopt the most proper means for

regulating the British government in India, and for promoting the

happiness of the natives who live under its authority or influence, your

Committee hold it expedient to collect into distinct points of view the

circumstances by which that government appears to them to be most

essentially disordered, and to explain fully the principles of policy

and the course of conduct by which the natives of all ranks and orders

have been reduced to their present state of depression and misery.

Your Committee have endeavored to perform this task in plain and popular

language, knowing that nothing has alienated the House from inquiries

absolutely necessary for the performance of one of the most essential

of all its duties so much as the technical language of the Company's

records, as the Indian names of persons, of offices, of the tenure and

qualities of estates, and of all the varied branches of their intricate

revenue. This language is, indeed, of necessary use in the executive

departments of the Company's affairs; but it is not necessary to

Parliament. A language so foreign from all the ideas and habits of the

far greater part of the members of this House has a tendency to disgust

them with all sorts of inquiry concerning this subject. They are

fatigued into such a despair of ever obtaining a competent knowledge of

the transactions in India, that they are easily persuaded to remand them

back to that obscurity, mystery, and intrigue out of which they have

been forced upon public notice by the calamities arising from their

extreme mismanagement. This mismanagement has itself, as your Committee

conceive, in a great measure arisen from dark cabals, and secret

suggestions to persons in power, without a regular public inquiry into

the good or evil tendency of any measure, or into the merit or demerit

of any person intrusted with the Company's concerns.

[Sidenote: Present laws relating to the East India Company, and internal

and external policy.]

The plan adopted by your Committee is, first, to consider the law

regulating the East India Company, as it now stands,--and, secondly, to

inquire into the circumstances of the two great links of connection by

which the territorial possessions in India are united to this kingdom,

namely, the Company's commerce, and the government exercised under the

charter and under acts of Parliament. The last [first] of these objects,

the commerce, is taken in two points of view: the _external_, or the

direct trade between India and Europe, and the _internal_, that is to

say, the trade of Bengal, in all the articles of produce and manufacture

which furnish the Company's investment.

The government is considered by your Committee under the like

descriptions of internal and external. The internal regards the

communication between the Court of Directors and their servants in

India, the management of the revenue, the expenditure of public money,

the civil administration, the administration of justice, and the state

of the army. The external regards, first, the conduct and maxims of the

Company's government with respect to the native princes and people

dependent on the British authority,--and, next, the proceedings with

regard to those native powers which are wholly independent of the

Company. But your Committee's observations on the last division extend

to those matters only which are not comprehended in the Report of the

Committee of Secrecy. Under these heads, your Committee refer to the

most leading particulars of abuse which prevail in the administration of

India,--deviating only from this order where the abuses are of a

complicated nature, and where one cannot be well considered

independently of several others.

[Sidenote: Second attempt made by Parliament for a reformation.]

Your Committee observe, that this is the second attempt made by

Parliament for the reformation of abuses in the Company's government. It

appears, therefore, to them a necessary preliminary to this second

undertaking, _to consider the causes which, in their opinion_, have

produced the failure of the first,--that the defects of the original

plan may be supplied, its errors corrected, and such useful regulations

as were then adopted may be further explained, enlarged, and enforced.

[Sidenote: Proceedings of session 1773.]

The first design of this kind was formed in the session of the year

1773. In that year, Parliament, taking up the consideration of the

affairs of India, through two of its committees collected a very great

body of details concerning the interior economy of the Company's

possessions, and concerning many particulars of abuse which prevailed at

the time when those committees made their ample and instructive reports.

But it does not appear that the body of regulations enacted in that

year, that is, in the East India Act of the thirteenth of his Majesty's

reign, were altogether grounded on that information, but were adopted

rather on probable speculations and general ideas of good policy and

good government. New establishments, civil and judicial, were therefore

formed at a very great expense, and with much complexity of

constitution. Checks and counter-checks of all kinds were contrived in

the execution, as well as in the formation of this system, in which all

the existing authorities of this kingdom had a share: for Parliament

appointed the members of the presiding part of the new establishment,

the Crown appointed the judicial, and the Company preserved the

nomination of the other officers. So that, if the act has not fully

answered its purposes, the failure cannot be attributed to any want of

officers of every description, or to the deficiency of any mode of

patronage in their appointment. The cause must be sought elsewhere.

[Sidenote: Powers and objects of act of 1773, and the effects thereof.]

The act had in its view (independently of several detached regulations)

five fundamental objects.

1st. The reformation of the Court of Proprietors of the East India

Company.

2ndly. A new model of the Court of Directors, and an enforcement of

their authority over the servants abroad.

3rdly. The establishment of a court of justice capable of protecting the

natives from the oppressions of British subjects.

4thly. The establishment of a general council, to be seated in Bengal,

whose authority should, in many particulars, extend over all the British

settlements in India.

5thly. To furnish the ministers of the crown with constant information

concerning the whole of the Company's correspondence with India, in

order that they might be enabled to inspect the conduct of the Directors

and servants, and to watch over the execution of all parts of the act;

that they might be furnished with matter to lay before Parliament from

time to time, according as the state of things should render regulation

or animadversion necessary.

[Sidenote: Court of Proprietors.]

[Sidenote: New qualification.]

The first object of the policy of this act was to improve the

constitution of the Court of Proprietors. In this case, as in almost all

the rest, the remedy was not applied directly to the disease. The

complaint was, that factions in the Court of Proprietors had shown, in

several instances, a disposition to support the servants of the Company

against the just coercion and legal prosecution of the Directors.

Instead of applying a corrective to the distemper, a change was proposed

in the constitution. By this reform, it was presumed that an interest

would arise in the General Court more independent in itself, and more

connected with the commercial prosperity of the Company. Under the new

constitution, no proprietor, not possessed of a thousand pounds capital

stock, was permitted to vote in the General Court: before the act, five

hundred pounds was a sufficient qualification for one vote; and no value

gave more. But as the lower classes were disabled, the power was

increased in the higher: proprietors of three thousand pounds were

allowed two votes; those of six thousand were entitled to three; ten

thousand pounds was made the qualification for four. The votes were thus

regulated in the scale and gradation of property. On this scale, and on

some provisions to prevent occasional qualifications and splitting of

votes, the whole reformation rested.

[Sidenote: The ballot.]

[Sidenote: Indian interest.]

Several essential points, however, seem to have been omitted or

misunderstood. No regulation was made to abolish the pernicious custom

of voting by _ballot_, by means of which acts of the highest concern to

the Company and to the state might be done by individuals with perfect

impunity; and even the body itself might be subjected to a forfeiture of

all its privileges for defaults of persons who, so far from being under

control, could not be so much as known in any mode of legal cognizance.

Nothing was done or attempted to prevent the operation of the interest

of delinquent servants of the Company in the General Court, by which

they might even come to be their own judges, and, in effect, under

another description, to become the masters in that body which ought to

govern them. Nor was anything provided to secure the independency of the

proprietary body from the various exterior interests by which it might

be disturbed, and diverted from the conservation of that pecuniary

concern which the act laid down as the sole security for preventing a

collusion between the General Court and the powerful delinquent servants

in India. The whole of the regulations concerning the Court of

Proprietors relied upon two principles, which have often proved

fallacious: namely, that small numbers were a security against faction

and disorder; and that integrity of conduct would follow the greater

property. In no case could these principles be less depended upon than

in the affairs of the East India Company. However, by wholly cutting off

the lower, and adding to the power of the higher classes, it was

supposed that the higher would keep their money in that fund to make

profit,--that the vote would be a secondary consideration, and no more

than a guard to the property,--and that therefore any abuse which tended

to depreciate the value of their stock would be warmly resented by such

proprietors.

If the ill effects of every misdemeanor in the Company's servants were

to be _immediate_, and had a tendency to lower the value of the stock,

something might justly be expected from the pecuniary security taken by

the act. But from the then state of things, it was more than probable

that proceedings ruinous to the permanent interest of the Company might

commence in great lucrative advantages. Against this evil large

pecuniary interests were rather the reverse of a remedy. Accordingly,

the Company's servants have ever since covered over the worst

oppressions of the people under their government, and the most cruel and

wanton ravages of all the neighboring countries, by holding out, and for

a time actually realizing, additions of revenue to the territorial funds

of the Company, and great quantities of valuable goods to their

investment.

[Sidenote: Proprietors.]

But this consideration of mere income, whatever weight it might have,

could not be the first object of a proprietor, in a body so

circumstanced. The East India Company is not, like the Bank of England,

a mere moneyed society for the sole purpose of the preservation or

improvement of their capital; and therefore every attempt to regulate it

upon the same principles must inevitably fail. When it is considered

that a certain share in the stock gives a share in the government of so

vast an empire, with such a boundless patronage, civil, military,

marine, commercial, and financial, in every department of which such

fortunes have been made as could be made nowhere else, it is impossible

not to perceive that capitals far superior to any qualifications

appointed to proprietors, or even to Directors, would readily be laid

out for a participation in that power. The India proprietor, therefore,

will always be, in the first instance, a politician; and the bolder his

enterprise, and the more corrupt his views, the less will be his

consideration of the price to be paid for compassing them. The new

regulations did not reduce the number so low as not to leave the

assembly still liable to all the disorder which might be supposed to

arise from multitude. But if the principle had been well established and

well executed, a much greater inconveniency grew out of the reform than

that which had attended the old abuse: for if tumult and disorder be

lessened by reducing the number of proprietors, private cabal and

intrigue are facilitated at least in an equal degree; and it is cabal

and corruption, rather than disorder and confusion, that was most to be

dreaded in transacting the affairs of India. Whilst the votes of the

smaller proprietors continued, a door was left open for the public sense

to enter into that society: since that door has been closed, the

proprietary has become, even more than formerly, an aggregate of private

interests, which subsist at the expense of the collective body. At the

moment of this revolution in the proprietary, as it might naturally be

expected, those who had either no very particular interest in their vote

or but a petty object to pursue immediately disqualified; but those who

were deeply interested in the Company's patronage, those who were

concerned in the supply of ships and of the other innumerable objects

required for their immense establishments, those who were engaged in

contracts with the Treasury, Admiralty, and Ordnance, together with the

clerks in public offices, found means of securing qualifications at the

enlarged standard. All these composed a much greater proportion than

formerly they had done of the proprietary body.

Against the great, predominant, radical corruption of the Court of

Proprietors the raising the qualification proved no sort of remedy. The

return of the Company's servants into Europe poured in a constant supply

of proprietors, whose ability to purchase the highest qualifications for

themselves, their agents, and dependants could not be dubious. And this

latter description form a very considerable, and by far the most active

and efficient part of that body. To add to the votes, which is adding to

the power in proportion to the wealth, of men whose very offences were

supposed to consist in acts which lead to the acquisition of enormous

riches, appears by no means a well-considered method of checking

rapacity and oppression. In proportion as these interests prevailed, the

means of cabal, of concealment, and of corrupt confederacy became far

more easy than before. Accordingly, there was no fault with respect to

the Company's government over its servants, charged or chargeable on the

General Court as it originally stood, of which since the reform it has

not been notoriously guilty. It was not, therefore, a matter of surprise

to your Committee, that the General Court, so composed, has at length

grown to such a degree of contempt both of its duty and of the permanent

interest of the whole corporation as to put itself into open defiance of

the salutary admonitions of this House, given for the purpose of

asserting and enforcing the legal authority of their own body over their

own servants.

The failure in this part of the reform of 1773 is not stated by your

Committee as recommending a return to the ancient constitution of the

Company, which was nearly as far as the new from containing any

principle tending to the prevention or remedy of abuses,--but to point

out the probable failure of any future regulations which do not apply

directly to the grievance, but which may be taken up as experiments to

ascertain theories of the operation of councils formed of greater or

lesser numbers, or such as shall be composed of men of more or less

opulence, or of interests of newer or longer standing, or concerning the

distribution of power to various descriptions or professions of men, or

of the election to office by one authority rather than another.

[Sidenote: Court of Directors.]

The second object of the act was the Court of Directors. Under the

arrangement of the year 1773 that court appeared to have its authority

much strengthened. It was made less dependent than formerly upon its

constituents, the proprietary. The duration of the Directors in office

was rendered more permanent, and the tenure itself diversified by a

varied and intricate rotation. At the same time their authority was held

high over their servants of all descriptions; and the only rule

prescribed to the Council-General of Bengal, in the exercise of the

large and ill-defined powers given to them, was that they were to yield

obedience to the orders of the Court of Directors. As to the Court of

Directors itself, it was left with very little regulation. The custom of

ballot, infinitely the most mischievous in a body possessed of all the

ordinary executive powers, was still left; and your Committee have found

the ill effects of this practice in the course of their inquiries.

Nothing was done to oblige the Directors to attend to the promotion of

their servants according to their rank and merits. In judging of those

merits nothing was done to bind them to any observation of what appeared

on their records. Nothing was done to compel them to prosecution or

complaint where delinquency became visible. The act, indeed, prescribed

that no servant of the Company abroad should be eligible into the

direction until two years after his return to England. But as this

regulation rather presumes than provides for an inquiry into their

conduct, a very ordinary neglect in the Court of Directors might easily

defeat it, and a short remission might in this particular operate as a

total indemnity. In fact, however, the servants have of late seldom

attempted a seat in the direction,--an attempt which might possibly

rouse a dormant spirit of inquiry; but, satisfied with an interest in

the proprietary, they have, through that name, brought the direction

very much under their own control.

As to the general authority of the Court of Directors, there is reason

to apprehend that on the whole it was somewhat degraded by the act whose

professed purpose was to exalt it, and that the only effect of the

Parliamentary sanction to their orders has been, that along with those

orders the law of the land has been despised and trampled under foot.

The Directors were not suffered either to nominate or to remove those

whom they were empowered to instruct; from masters they were reduced to

the situation of complainants,--a situation the imbecility of which no

laws or regulations could wholly alter; and when the Directors were

afterwards restored in some degree to their ancient power, on the

expiration of the lease given to their principal servants, it became

impossible for them to recover any degree of their ancient respect, even

if they had not in the mean time been so modelled as to be entirely free

from all ambition of that sort.

From that period the orders of the Court of Directors became to be so

habitually despised by their servants abroad, and at length to be so

little regarded even by themselves, that this contempt of orders forms

almost the whole subject-matter of the voluminous reports of two of your

committees. If any doubt, however, remains concerning the cause of this

fatal decline of the authority of the Court of Directors, no doubt

whatsoever can remain of the fact itself, nor of the total failure of

one of the great leading regulations of the act of 1773.

[Sidenote: Supreme Court of Judicature.]

The third object was a new judicial arrangement, the chief purpose of

which was to form a strong and solid security for the natives against

the wrongs and oppressions of British subjects resident in Bengal. An

operose and expensive establishment of a Supreme Court was made, and

charged upon the revenues of the country. The charter of justice was by

the act left to the crown, as well as the appointment of the

magistrates. The defect in the institution seemed to be this,--that no

rule was laid down, either in the act or the charter, by which the court

was to judge. No descriptions of offenders or species of delinquency

were properly ascertained, according to the nature of the place, or to

the prevalent mode of abuse. Provision was made for the administration

of justice in the remotest part of Hindostan as if it were a province in

Great Britain. Your Committee have long had the constitution and conduct

of this court before them, and they have not yet been able to discover

very few instances (not one that appears to them of leading importance)

of relief given to the natives against the corruptions or oppressions of

British subjects in power,--though they do find one very strong and

marked instance of the judges having employed an unwarrantable extension

or application of the municipal law of England, to destroy a person of

the highest rank among those natives whom they were sent to protect. One

circumstance rendered the proceeding in this case fatal to all the good

purposes for which the court had been established. The sufferer (the

Rajah Nundcomar) appears, at the very time of this extraordinary

prosecution, a discoverer of some particulars of illicit gain then

charged upon Mr. Hastings, the Governor-General. Although in ordinary

cases, and in some lesser instances of grievance, it is very probable

that this court has done its duty, and has been, as every court must be,

of some service, yet one example of this kind must do more towards

deterring the natives from complaint, and consequently from the means

of redress, than many decisions favorable to them, in the ordinary

course of proceeding, can do for their encouragement and relief. So far

as your Committee has been able to discover, the court has been

generally terrible to the natives, and has distracted the government of

the Company without substantially reforming any one of its abuses.

This court, which in its constitution seems not to have had sufficiently

in view the necessities of the people for whose relief it was intended,

and was, or thought itself, bound in some instances to too strict an

adherence to the forms and rules of English practice, in others was

framed upon principles perhaps too remote from the constitution of

English tribunals. By the usual course of English practice, the far

greater part of the redress to be obtained against oppressions of power

is by process in the nature of civil actions. In these a trial by jury

is a necessary part, with regard to the finding the offence and to the

assessment of the damages. Both these were in the charter of justice

left entirely to the judges. It was presumed, and not wholly without

reason, that the British subjects were liable to fall into factions and

combinations, in order to support themselves in the abuses of an

authority of which every man might in his turn become a sharer. And with

regard to the natives, it was presumed (perhaps a little too hastily)

that they were not capable of sharing in the functions of jurors. But it

was not foreseen that the judges were also liable to be engaged in the

factions of the settlement,--and if they should ever happen to be so

engaged, that the native people were then without that remedy which

obviously lay in the chance that the court and jury, though both liable

to bias, might not easily unite in the same identical act of injustice.

Your Committee, on full inquiry, are of opinion _that the use of juries

is neither impracticable nor dangerous in Bengal_.

Your Committee refer to their report made in the year 1781, for the

manner in which this court, attempting to extend its jurisdiction, and

falling with extreme severity on the native magistrates, a violent

contest arose between the English judges and the English civil

authority. This authority, calling in the military arm, (by a most

dangerous example,) overpowered, and for a while suspended, the

functions of the court; but at length those functions, which were

suspended by the quarrel of the parties, were destroyed by their

reconciliation, and by the arrangements made in consequence of it. By

these the court was virtually annihilated; or if substantially it

exists, it is to be apprehended it exists only for purposes very

different from those of its institution.

The fourth object of the act of 1773 was the Council-General. This

institution was intended to produce uniformity, consistency, and the

effective coöperation of all the settlements in their common defence. By

the ancient constitution of the Company's foreign settlements, they were

each of them under the orders of a President or Chief, and a Council,

more or fewer, according to the discretion of the Company. Among those,

Parliament (probably on account of the largeness of the territorial

acquisitions, rather than the conveniency of the situation) chose Bengal

for the residence of the controlling power, and, dissolving the

Presidency, appointed a new establishment, upon a plan somewhat similar

to that which had prevailed before; but the number was smaller. This

establishment was composed of a Governor-General and four Counsellors,

all named in the act of Parliament. They were to hold their offices for

five years, after which term the patronage was to revert to the Court of

Directors. In the mean time such vacancies as should happen were to be

filled by that court, with the concurrence of the crown. The first

Governor-General and one of the Counsellors had been old servants of the

Company; the others were new men.

On this new arrangement the Courts of Proprietors and Directors

considered the details of commerce as not perfectly consistent with the

enlarged sphere of duty and the reduced number of the Council.

Therefore, to relieve them from this burden, they instituted a new

office, called the Board of Trade, for the subordinate management of

their commercial concerns, and appointed eleven of the senior servants

to fill the commission.

[Sidenote: Object of powers to Governor-General and Council.]

The powers given by the act to the new Governor-General and Council had

for their direct object the kingdom of Bengal and its dependencies.

Within that sphere (and it is not a small one) their authority extended

over all the Company's concerns of whatever description. In matters of

peace and war it seems to have been meant that the other Presidencies

should be subordinate to their board. But the law is loose and

defective, where it professes to restrain the subordinate Presidencies

from making war without the consent and approbation of the Supreme

Council. They are left free to act without it _in cases of imminent

necessity_, or _where they shall have received special orders from the

Company_. The first exception leaves it open to the subordinate to judge

of the necessity of measures which, when taken, bind or involve the

superior: the second refers a question of peace or war to two

jurisdictions, which may give different judgments. In both instances

cases in point have occurred.[1] With regard to their local

administration, their powers were exceedingly and dangerously loose and

undetermined. Their powers were not given directly, but in words of

reference, in which neither the objects related to nor the mode of the

relation were sufficiently expressed. Their legislative and executive

capacities were not so accurately drawn, and marked by such strong and

penal lines of distinction, as to keep these capacities separate. Where

legislative and merely executive powers were lodged in the same hands,

the legislative, which is the larger and the more ready for all

occasions, was constantly resorted to. The Governor-General and Council,

therefore, immediately gave constructions to their ill-defined authority

which rendered it perfectly despotic,--constructions which if they were

allowed, no action of theirs ought to be regarded as criminal.

Armed as they were with an authority in itself so ample, and by abuse so

capable of an unlimited extent, very few, and these very insufficient

correctives, were administered. Ample salaries were provided for them,

which indeed removed the necessity, but by no means the inducements to

corruption and oppression. Nor was any barrier whatsoever opposed on the

part of the natives against their injustice, except the Supreme Court

of Judicature, which never could be capable of controlling a government

with such powers, without becoming such a government itself.

There was, indeed, a prohibition against all concerns in trade to the

whole Council, and against all taking of presents by any in authority. A

right of prosecution in the King's Bench was also established; but it

was a right the exercise of which is difficult, and in many, and those

the most weighty cases, impracticable. No considerable facilities were

given to prosecution in Parliament; nothing was done to prevent

complaint from being far more dangerous to the sufferer than injustice

to the oppressor. No overt acts were fixed, upon which corruption should

be presumed in transactions of which secrecy and collusion formed the

very basis; no rules of evidence nor authentic mode of transmission were

settled in conformity to the unalterable circumstances of the country

and the people.

[Sidenote: Removal of servants.]

One provision, indeed, was made for restraining the servants, in itself

very wise and substantial: a delinquent once dismissed, could not be

restored, but by the votes of three fourths of the Directors and three

fourths of the proprietors: this was well aimed. But no method was

settled for bringing delinquents to the question of removal: and if they

should be brought to it, a door lay wide open for evasion of the law,

and for a return into the service, in defiance of its plain

intention,--that is, by resigning to avoid removal; by which measure

this provision of the act has proved as unoperative as all the rest. By

this management a mere majority may bring in the greater delinquent,

whilst the person removed for offences comparatively trivial may remain

excluded forever.

[Sidenote: Council-General]

The new Council nominated in the act was composed of two totally

discordant elements, which soon distinguished themselves into permanent

parties. One of the principal instructions which the three members of

the Council sent immediately from England, namely, General Clavering,

Colonel Monson, and Mr. Francis, carried out with them was, to "_cause

the strictest inquiry to be made into all oppressions and abuses_,"

among which _the practice of receiving presents from the natives_, at

that time generally charged upon men in power, was principally aimed at.

Presents to any considerable value were justly reputed by the

legislature, not as marks of attention and respect, but as bribes or

extortions, for which either the beneficial and gratuitous duties of

government were sold, or they were the price paid for acts of

partiality, or, finally, they were sums of money extorted from the

givers by the terrors of power. Against the system of presents,

therefore, the new commission was in general opinion particularly

pointed. In the commencement of reformation, at a period when a

rapacious conquest had overpowered and succeeded to a corrupt

government, an act of indemnity might have been thought advisable;

perhaps a new account ought to have been opened; all retrospect ought to

have been forbidden, at least to certain periods. If this had not been

thought advisable, none in the higher departments of a suspected and

decried government ought to have been kept in their posts, until an

examination had rendered their proceedings clear, or until length of

time had obliterated, by an even course of irreproachable conduct, the

errors which so naturally grow out of a new power. But the policy

adopted was different: it was to begin with _examples_. The cry against

the abuses was strong and vehement throughout the whole nation, and the

practice of presents was represented to be as general as it was

mischievous. In such a case, indeed in any case, it seemed not to be a

measure the most provident, without a great deal of previous inquiry, to

place two persons, who from their situation must be the most exposed to

such imputations, in the commission which was to inquire into their own

conduct,--much less to place one of them at the head of that commission,

and with a casting vote in case of an equality. The persons who could

not be liable to that charge were, indeed, three to two; but any

accidental difference of opinion, the death of any one of them or his

occasional absence or sickness, threw the whole power into the hands of

the other two, who were Mr. Hastings and Mr. Barwell, one the President,

and the other high in the Council of that establishment on which the

reform was to operate. Thus those who were liable to process as

delinquents were in effect set over the reformers; and that did actually

happen which might be expected to happen from so preposterous an

arrangement: a stop was soon put to all inquiries into the capital

abuses.

Nor was the great political end proposed in the formation of a

superintending Council over all the Presidencies better answered than

that of an inquiry into corruptions and abuses. The several Presidencies

have acted in a great degree upon their own separate authority; and as

little of unity, concert, or regular system has appeared in their

conduct as was ever known before this institution. India is, indeed, so

vast a country, and the settlements are so divided, that their

intercourse with each other is liable to as many delays and difficulties

as the intercourse between distant and separate states. But one evil may

possibly have arisen from an attempt to produce an union, which, though

undoubtedly to be aimed at, is opposed in some degree by the unalterable

nature of their situation,--that it has taught the servants rather to

look to a superior among themselves than to their common superiors. This

evil, growing out of the abuse of the principle of subordination, can

only be corrected by a very strict enforcement of authority over that

part of the chain of dependence which is next to the original power.

[Sidenote: Powers given to the ministers of the crown.]

That which your Committee considers as the fifth and last of the capital

objects of the act, and as the binding regulation of the whole, is the

introduction (then for the first time) of the ministers of the crown

into the affairs of the Company. The state claiming a concern and share

of property in the Company's profits, the servants of the crown were

presumed the more likely to preserve with a scrupulous attention the

sources of the great revenues which they were to administer, and for the

rise and fall of which they were to render an account.

The interference of government was introduced by this act in two ways:

one by a control, in effect by a share, in the appointment to vacancies

in the Supreme Council. The act provided that his Majesty's approbation

should be had to the persons named to that duty. Partaking thus in the

patronage of the Company, administration was bound to an attention to

the characters and capacities of the persons employed in that high

trust. The other part of their interference was by way of inspection. By

this right of inspection, everything in the Company's correspondence

from India, which related to the civil or military affairs and

government of the Company, was directed by the act to be within fourteen

days after the receipt laid before the Secretary of State, and

everything that related to the management of the revenues was to be laid

before the Commissioners of the Treasury. In fact, both description of

these papers have been generally communicated to that board.

[Sidenote: Defects in the plan.]

It appears to your Committee that there were great and material defects

in both parts of the plan. With regard to the approbation of persons

nominated to the Supreme Council by the Court of Directors, no

sufficient means were provided for carrying to his Majesty, along with

the nomination, the particulars in the conduct of those who had been in

the service before, which might render them proper objects of

approbation or rejection. The India House possesses an office of record

capable of furnishing, in almost all cases, materials for judging on the

behavior of the servants in their progress from the lowest to the

highest stations; and the whole discipline of the service, civil and

military, must depend upon an examination of these records inseparably

attending every application for an appointment to the highest stations.

But in the present state of the nomination the ministers of the crown

are not furnished with the proper means of exercising the power of

control intended by the law, even if they were scrupulously attentive to

the use of it. There are modes of proceeding favorable to neglect.

Others excite inquiry and stimulate to vigilance.

[Sidenote: Proposition to remedy them.]

Your Committee, therefore, are of opinion, that for the future

prevention of cabal, and of private and partial representation, whether

above or below, that, whenever any person who has been in the service

shall be recommended to the King's ministers to fill a vacancy in the

Council-General, the Secretary of the Court of Directors shall be

ordered to make a strict search into the records of the Company, and

shall annex to the recommendation the reasons of the Court of Directors

for their choice, together with a faithful copy of whatever shall be

found (if anything can be found) relative to his character and

conduct,--as also an account of his standing in the Company's service,

the time of his abode in India, the reasons for his return, and the

stations, whether civil or military, in which he has been successively

placed.

With this account ought to be transmitted the names of those who were

proposed as candidates for the same office, with the correspondent

particulars relative to their conduct and situation: for not only the

separate, but the comparative merit, probably would, and certainly

ought, to have great influence in the approbation or rejection of the

party presented to the ministers of the crown. These papers should be

laid before the Commissioners of the Treasury and one of the Secretaries

of State, and entered in books to be kept in the Treasury and the

Secretary's office.

[Sidenote: Appointment of Counsellors, &c.]

[Sidenote: Macpherson's appointment.]

[Sidenote: Stables's.]

These precautions, in case of the nomination of any who have served the

Company, appear to be necessary from the improper nomination and

approbation of Mr. John Macpherson, notwithstanding the objections

which stood against him on the Company's records. The choice of Mr. John

Stables, from an inferior military to the highest civil capacity, was by

no means proper, nor an encouraging example to either service. His

conduct, indeed, in the subaltern military situation, had received, and

seems to have deserved, commendation; but no sufficient ground was

furnished for confounding the lines and gradations of service. This

measure was, however, far less exceptionable than the former; because an

irregular choice of a less competent person, and the preference given to

proved delinquency in prejudice to uncensured service, are very

different things. But even this latter appointment would in all

likelihood have been avoided, if rules of promotion had been

established. If such rules were settled, candidates qualified from

ability, knowledge, and service would not be discouraged by finding that

everything was open to every man, and that favor alone stood in the

place of civil or military experience. The elevation from the lowest

stations unfaithfully and negligently filled to the highest trusts, the

total inattention to rank and seniority, and, much more, the combination

of this neglect of rank with a confusion (unaccompanied with strong and

evident reasons) of the lines of service, cannot operate as useful

examples on those who serve the public in India. These servants,

beholding men who have been condemned for improper behavior to the

Company in inferior civil stations elevated above them, or (what is less

blamable, but still mischievous) persons without any distinguished civil

talents taken from the subordinate situations of another line to their

prejudice, will despair by any good behavior of ascending to the

dignities of their own: they will be led to improve, to the utmost

advantage of their fortune, the lower stages of power, and will endeavor

to make up in lucre what they can never hope to acquire in station.

The temporary appointment by Parliament of the Supreme Council of India

arose from an opinion that the Company, at that time at least, was not

in a condition or not disposed to a proper exercise of the privileges

which they held under their charter. It therefore behoved the Directors

to be particularly attentive to their choice of Counsellors, on the

expiration of the period during which their patronage had been

suspended. The duties of the Supreme Council had been reputed of so

arduous a nature as to require even a legislative interposition. They

were called upon, by all possible care and impartiality, to justify

Parliament at least as fully in the restoration of their privileges as

the circumstances of the time had done in their suspension.

But interests have lately prevailed in the Court of Directors, which, by

the violation of every rule, seemed to be resolved on the destruction of

those privileges of which they were the natural guardians. Every new

power given has been made the source of a new abuse; and the acts of

Parliament themselves, which provide but imperfectly for the prevention

of the mischief, have, it is to be feared, made provisions (contrary,

without doubt, to the intention of the legislature) which operate

against the possibility of any cure in the ordinary course.

In the original institution of the Supreme Council, reasons may have

existed against rendering the tenure of the Counsellors in their office

precarious. A plan of reform might have required the permanence of the

persons who were just appointed by Parliament to execute it. But the act

of 1780 gave a duration coexistent with the statute itself to a Council

not appointed by act of Parliament, nor chosen for any temporary or

special purpose; by which means the servants in the highest situation,

let their conduct be never so grossly criminal, cannot be removed,

unless the Court of Directors and ministers of the crown can be found to

concur in the same opinion of it. The prevalence of the Indian factions

in the Court of Directors and Court of Proprietors, and sometimes in the

state itself, renders this agreement extremely difficult: if the

principal members of the Direction should be in a conspiracy with any

principal servant under censure, it will be impracticable; because the

first act must originate there. The reduced state of the authority of

this kingdom in Bengal may be traced in a great measure to that very

natural source of independence. In many cases the instant removal of an

offender from his power of doing mischief is the only mode of preventing

the utter and perhaps irretrievable ruin of public affairs. In such a

case the process ought to be simple, and the power absolute in one or in

either hand separately. By contriving the balance of interests formed in

the act, notorious offence, gross error, or palpable insufficiency have

many chances of retaining and abusing authority, whilst the variety of

representations, hearings, and conferences, and possibly the mere

jealousy and competition between rival powers, may prevent any decision,

and at length give time and means for settlements and compromises among

parties, made at the expense of justice and true policy. But this act of

1780, not properly distinguishing judicial process from executive

arrangements, requires in effect nearly the same degree of solemnity,

delay, and detail for removing a political inconvenience which attends a

criminal proceeding for the punishment of offences. It goes further, and

gives the same tenure to all who shall succeed to vacancies which was

given to those whom the act found in office.

[Sidenote: Provisional appointment for vacancies.]

Another regulation was made in the act, which has a tendency to render

the control of delinquency or the removal of incapacity in the

Council-General extremely difficult, as well as to introduce many other

abuses into the original appointment of Counsellors. The inconveniences

of a vacancy in that important office, at a great distance from the

authority that is to fill it, were visible; but your Committee have

doubts whether they balance the mischief which may arise from the power

given in this act, of a provisional appointment to vacancies, not on the

event, but on foresight. This mode of providing for the succession has a

tendency to promote cabal, and to prevent inquiry into the

qualifications of the persons to be appointed. An attempt has been

actually made, in consequence of this power, in a very marked manner, to

confound the whole order and discipline of the Company's service. Means

are furnished thereby for perpetuating the powers of some given Court of

Directors. They may forestall the patronage of their successors, on whom

they entail a line of Supreme Counsellors and Governors-General. And if

the exercise of this power should happen in its outset to fall into bad

hands, the ordinary chances for mending an ill choice upon death or

resignation are cut off.

In these provisional arrangements it is to be considered that the

appointment is not in consequence of any marked event which calls

strongly on the attention of the public, but is made at the discretion

of those who lead in the Court of Directors, and may therefore be

brought forward at times the most favorable to the views of partiality

and corruption. Candidates have not, therefore, the notice that may be

necessary for their claims; and as the possession of the office to which

the survivors are to succeed seems remote, all inquiry into the

qualifications and character of those who are to fill it will naturally

be dull and languid.

Your Committee are not also without a grounded apprehension of the ill

effect on any existing Council-General of all strong marks of influence

and favor which appear in the subordinates of Bengal. This previous

designation to a great and arduous trust, (the greatest that can be

reposed in subjects,) when made out of any regular course of succession,

marks that degree of countenance and support at home which may

overshadow the existing government. That government may thereby be

disturbed by factions, and led to corrupt and dangerous compliances. At

best, when these Counsellors elect are engaged in no fixed employment,

and have no lawful intermediate emolument, the natural impatience for

their situations may bring on a traffic for resignations between them

and the persons in possession, very unfavorable to the interests of the

public and to the duty of their situations.

Since the act two persons have been nominated to the ministers of the

crown by the Court of Directors for this succession. Neither has yet

been approved. But by the description of the persons a judgment may be

formed of the principles on which this power is likely to be exercised.

[Sidenote: Stuart and Sulivan's appointment to succeed to vacancies.]

Your Committee find, that, in consequence of the above-mentioned act,

the Honorable Charles Stuart and Mr. Sulivan were appointed to succeed

to the first vacancies in the Supreme Council. Mr. Stuart's first

appointment in the Company's service was in the year 1761. He returned

to England in 1775, and was permitted to go back to India in 1780. In

August, 1781, he was nominated by the Court of Directors (Mr. Sulivan

and Sir William James were Chairman and Deputy-Chairman) to succeed to

the first vacancy in the Supreme Council, and on the 19th of September

following his Majesty's approval of such nomination was requested.

[Sidenote: Mr. Stuart's situation at the time of his appointment.]

In the nomination of Mr. Stuart, the consideration of rank in the

service was not neglected; but if the Court of Directors had thought fit

to examine their records, they would have found matter at least strongly

urging them to a suspension of this appointment, until the charges

against Mr. Stuart should be fully cleared up. That matter remained (as

it still remains) unexplained from the month of May, 1775, where, on the

Bengal Revenue Consultations of the 12th of that month, peculations to a

large amount are charged upon oath against Mr. Stuart under the

following title: "_The Particulars of the Money unjustly taken by Mr.

Stuart, during the Time he was at Burdwan._" The sum charged against him

in this account is 2,17,684 Sicca rupees (that is, 25,253_l._ sterling);

besides which there is another account with the following title: "_The

Particulars of the Money unjustly taken by Callypersaud Bose, Banian to

the Honorable Charles Stuart, Esquire, at Burdwan, and amounting to

Sicca Rupees 1,01,675_" (that is, 11,785_l._),--a large sum to be

received by a person in that subordinate situation.

The minuteness with which these accounts appear to have been kept, and

the precision with which the date of each particular, sometimes of very

small sums, is stated, give them the appearance of authenticity, as far

as it can be conveyed on the face or in the construction of such

accounts, and, if they were forgeries, laid them open to an easy

detection. But no detection is easy, when no inquiry is made. It appears

an offence of the highest order in the Directors concerned in this

business, when, not satisfied with leaving such charges so long

unexamined, they should venture to present to the king's servants the

object of them for the highest trust which they have to bestow. If Mr.

Stuart was really guilty, the possession of this post must furnish him

not only with the means of renewing the former evil practices charged

upon him, and of executing them upon a still larger scale, but of

oppressing those unhappy persons who, under the supposed protection of

the faith of the Company, had appeared to give evidence concerning his

former misdemeanors.

This attempt in the Directors was the more surprising, when it is

considered that two committees of this House were at that very time

sitting upon an inquiry that related directly to their conduct, and that

of their servants in India.

[Sidenote: Mr. Sulivan's situation at the time of his appointment.]

It was in the same spirit of defiance of Parliament, that at the same

time they nominated Mr. Sulivan, son to the then Chairman of the Court

of Directors, to the succession to the same high trust in India. On

these appointments, your Committee thought it proper to make those

inquiries which the Court of Directors thought proper to omit. They

first conceived it fitting to inquire what rank Mr. Sulivan bore in the

service; and they thought it not unnecessary here to state the

gradations in the service, according to the established usage of the

Company.

The Company's civil servants generally go to India as _writers_, in

which capacity they serve the Company _five years_. The next step, in

point of rank, is to be a _factor_, and next to that a _junior

merchant_; in each of which capacities they serve the Company _three

years_. They then rise to the rank of _senior merchant_, in which

situation they remain till called by rotation to the _Board of Trade_.

Until the passing of the Regulation Act, in 1773, seniority entitled

them to succeed to the _Council_, and finally gave them pretensions to

the _government of the Presidency_.

The above gradation of the service, your Committee conceive, ought never

to be superseded by the Court of Directors, without evident reason, in

persons or circumstances, to justify the breach of an ancient order. The

names, whether taken from civil or commercial gradation, are of no

moment. The order itself is wisely established, and tends to provide a

natural guard against partiality, precipitancy, and corruption in

patronage. It affords means and opportunities for an examination into

character; and among the servants it secures a strong motive to preserve

a fair reputation. Your Committee find that no respect whatsoever was

paid to this gradation in the instance of Mr. Sulivan, nor is there any

reason assigned for departing from it. They do not find that Mr. Sulivan

had ever served the Company in any one of the above capacities, but was,

in the year 1777, abruptly brought into the service, and sent to Madras

to succeed as Persian Translator and Secretary to the Council.

Your Committee have found a letter from Mr. Sulivan to George Wombwell

and William Devaynes, Esquires, Chairman and Deputy-Chairman of the

Court of Directors, stating that he trusted _his applications_ would

have a place in their deliberations when Madras affairs were taken up.

Of what nature those applications were your Committee cannot discover,

as no traces of them appear on the Company's records,--nor whether any

proofs of his ability, even as Persian Translator, which might entitle

him to a preference to the many servants in India whose study and

opportunities afforded them the means of becoming perfect masters of

that language.

On the above letter your Committee find that the Committee of

Correspondence proceeded; and on their recommendation the Court of

Directors unanimously approved of Mr. Sulivan to be appointed to succeed

to the posts of Secretary and Persian Translator.

[Sidenote: Mr. Sulivan's succession of offices.]

Conformably to the orders of the court, Mr. Sulivan succeeded to those

posts; and the President and Council acquainted the Court of Directors

that they had been obeyed. About five months after, it appears that Mr.

Sulivan thought fit to resign the office of Persian Translator, to which

he had been appointed by the Directors. In April, 1780, Mr. Sulivan is

commended for his _great diligence as Secretary_; in August following

he obtains leave to accompany Mrs. Sulivan to Bengal, whence she is to

proceed to Europe on account of her health; and he is charged with a

commission from the President and Council of Fort St. George to obtain

for that settlement supplies of grain, troops, and money, from the

Governor-General and Council of Bengal. In October the Governor-General

requests permission of the Council there to employ Mr. Sulivan as his

_Assistant_, for that he had experienced (between his arrival in Bengal

and that time) the abilities of Mr. Sulivan, and made choice of him as

_completely qualified for that trust_; also requests the board to

appoint him Judge-Advocate-General, and likewise to apply to the

Presidency of Madras for him to remain in Bengal without prejudice to

his rank on their establishment: which several requests the board at

Madras readily complied with, notwithstanding their natural sensibility

to the loss of a Secretary of such ability and diligence as they had

described Mr. Sulivan to be.

On the 5th of December following, the President and Council received a

letter from Bengal, requesting that Mr. Sulivan might be allowed to keep

his rank. This request brought on some discussion. A Mr. Freeman, it

seems, who had acted under Mr. Sulivan as Sub-Secretary whilst his

principal obtained so much praise for his diligence, addressed the board

on the same day, and observed, "that, since Mr. Sulivan's arrival, _he_

[Mr. Freeman] had, _without intermission_, done almost the _whole_ of

the duty allotted to the post of Secretary, _which it was notorious Mr.

Sulivan had paid but little attention to_; and neither his inclination

or duty led him to act any longer as Mr. Sulivan's deputy."

Here your Committee cannot avoid remarking the direct contradiction

which this address of Mr. Freeman's gives to the letter from the

President and Council to the Court of Directors in April, 1780, wherein

Mr. Sulivan is praised for his "diligence and attention in his office of

Secretary."

The President and Council do not show any displeasure at Mr. Freeman's

representation, (so contrary to their own,) the truth of which they thus

tacitly admit, but agree to write to the Governor-General and Council,

"that it could not be supposed that they could carry on the public

business for any length of time without _the services of a Secretary_

and Clerk of Appeals, two offices that required personal attendance, and

which would be a general injury to the servants on their establishment,

and in particular to the person who acted in those capacities, as they

learnt that Mr. Sulivan had been appointed Judge-Advocate-General in

Bengal,--and to request the Governor-General and Council to inform Mr.

Sulivan of their sentiments, and to desire him to inform them whether he

meant to return to his station or to remain in Bengal."

On the 5th December, as a mark of their approbation of Mr. Freeman, who

had so plainly contradicted their opinion of Mr. Sulivan, the President

and Council agree to appoint him to act as Secretary and Clerk of

Appeals, till Mr. Sulivan's answer should arrive, with the emoluments,

and to confirm him therein, if Mr. Sulivan should remain in Bengal.

On the 14th February, 1781, the President and Council received a letter

from Bengal in reply, and stating their request that Mr. Sulivan might

reserve the right of returning to his original situation on the Madras

establishment, if the Court of Directors should disapprove of his being

transferred to Bengal. To this request the board at Madras declare they

have no objection: and here the matter rests; the Court of Directors not

having given any tokens of approbation or disapprobation of the

transaction.

Such is the history of Mr. Sulivan's service from the time of his

appointment; such were the qualifications, and such the proofs of

assiduity and diligence given by him in holding so many incompatible

offices, (as well as being engaged in other dealings, which will appear

in their place,) when, after three years' desultory residence in India,

he was thought worthy to be nominated to the succession to the Supreme

Council. No proof whatsoever of distinguished capacity in any line

preceded his original appointment to the service: so that the whole of

his fitness for the Supreme Council rested upon his conduct and

character since his appointment as Persian Translator.

Your Committee find that his Majesty has not yet given his approbation

to the nomination, made by the Court of Directors on the 30th of August,

1781, of Messrs. Stuart and Sulivan to succeed to the Supreme Council on

the first vacancies, though the Court applied for the royal approbation

so long ago as the 19th of September, 1781; and in these instances the

king's ministers performed their duty, in withholding their countenance

from a proceeding so exceptionable and of so dangerous an example.

Your Committee, from a full view of the situation and duties of the

Court of Directors, are of opinion that effectual means ought to be

taken for regulating that court in such a manner as to prevent either

rivalship with or subserviency to their servants. It might, therefore,

be proper for the House to consider whether it is fit that those who

are, or have been within some given time, Directors of the Company,

should be capable of an appointment to any offices in India. Directors

can never properly govern those for whose employments they are or may be

themselves candidates; they can neither protect nor coerce them with due

impartiality or due authority.

If such rules as are stated by your Committee under this head were

observed in the regular service at home and abroad, the necessity of

superseding the regular service by strangers would be more rare; and

whenever the servants were so superseded, those who put forward other

candidates would be obliged to produce a strong plea of merit and

ability, which, in the judgment of mankind, ought to overpower

pretensions so authentically established, and so rigorously guarded from

abuse.

[Sidenote: Deficiency of powers to ministers of government.]

The second object, in this part of the plan, of the act of 1773, namely,

that of inspection by the ministers of the crown, appears not to have

been provided for, so as to draw the timely and productive attention of

the state on the grievances of the people of India, and on the abuses of

its government. By the Regulating Act, the ministers were enabled to

inspect one part of the correspondence, that which was received in

England, but not that which went outward. They might know something, but

that very imperfectly and unsystematically, of the state of affairs; but

they were neither authorized to advance nor to retard any measure taken

by the Directors in consequence of that state: they were not provided

even with sufficient means of knowing what any of these measures were.

And this imperfect information, together with the want of a direct call

to any specific duty, might have, in some degree, occasioned that

remissness which rendered even the imperfect powers originally given by

the act of 1773 the less efficient. This defect was in a great measure

remedied by a subsequent act; but that act was not passed until the year

1780.

[Sidenote: Disorders increased since 1773.]

Your Committee find that during the whole period which elapsed from 1773

to the commencement of 1782 disorders and abuses of every kind

multiplied. Wars contrary to policy and contrary to public faith were

carrying on in various parts of India. The allies, dependants, and

subjects of the Company were everywhere oppressed;[2] dissensions in the

Supreme Council prevailed, and continued for the greater part of that

time; the contests between the civil and judicial powers threatened that

issue to which they came at last, an armed resistance to the authority

of the king's court of justice; the orders which by an act of Parliament

the servants were bound to obey were avowedly and on principle

contemned; until at length the fatal effects of accumulated misdemeanors

abroad and neglects at home broke out in the alarming manner which your

Committee have so fully reported to this House.[3]

[Sidenote: Proceedings in India not known to Parliament.]

In all this time the true state of the several Presidencies, and the

real conduct of the British government towards the natives, was not at

all known to Parliament: it seems to have been very imperfectly known

even to ministers. Indeed, it required an unbroken attention, and much

comparison of facts and reasonings, to form a true judgment on that

difficult and complicated system of politics, revenue, and commerce,

whilst affairs were only in their progress to that state which produced

the present inquiries. Therefore, whilst the causes of their ruin were

in the height of their operation, both the Company and the natives were

understood by the public as in circumstances the most assured and most

flourishing; insomuch that, whenever the affairs of India were brought

before Parliament, as they were two or three times during that period,

the only subject-matter of discussion anywise important was concerning

the sums which might be taken out of the Company's surplus profits for

the advantage of the state. Little was thought of but the disengagement

of the Company from their debts in _England_, and to prevent the

servants abroad from drawing upon them, so as that body might be

enabled, without exciting clamors here, to afford the contribution that

was demanded. All descriptions of persons, either here or in India,

looking solely to appearances at home, the reputation of the Directors

depended on the keeping the Company's sales in a situation to support

the dividend, that of the ministers depended on the most lucrative

bargains for the Exchequer, and that of the servants abroad on the

largest investments; until at length there is great reason to apprehend,

that, unless some very substantial reform takes place in the management

of the Company's affairs, nothing will be left for investment, for

dividend, or for bargain, and India, instead of a resource to the

public, may itself come, in no great length of time, to be reckoned

amongst the public burdens.

[Sidenote: Inspection of ministers has failed in effect.]

In this manner the inspection of the ministers of the crown, the great

cementing regulation of the whole act of 1773, has, along with all the

others, entirely failed in its effect.

[Sidenote: Failure in the act.]

Your Committee, in observing on the failure of this act, do not consider

the intrinsic defects or mistakes in the law itself as the sole cause of

its miscarriage. The general policy of the nation with regard to this

object has been, they conceive, erroneous; and no remedy by laws, under

the prevalence of that policy, can be effectual. Before any remedial law

can have its just operation, the affairs of India must be restored to

their natural order. The prosperity of the natives must be previously

secured, before any profit from them whatsoever is attempted. For as

long as a system prevails which regards the transmission of great wealth

to this country, either for the Company or the state, as its principal

end, so long will it be impossible that those who are the instruments of

that scheme should not be actuated by the same spirit for their own

private purposes. It will be worse: they will support the injuries done

to the natives for their selfish ends by new injuries done in favor of

those before whom they are to account. It is not reasonably to be

expected that a public rapacious and improvident should be served by any

of its subordinates with disinterestedness or foresight.

II.--CONNECTION OF GREAT BRITAIN WITH INDIA.

In order to open more fully the tendency of the policy which has

hitherto prevailed, and that the House may be enabled, in any

regulations which may be made, to follow the tracks of the abuse, and

to apply an appropriated remedy to a particular distemper, your

Committee think it expedient to consider in some detail the manner in

which India is connected with this kingdom,--which is the second head of

their plan.

The two great links by which this connection is maintained are, first,

the East India Company's commerce, and, next, the government set over

the natives by that company and by the crown. The first of these

principles of connection, namely, the East India Company's trade, is to

be first considered, not only as it operates by itself, but as having a

powerful influence over the general policy and the particular measures

of the Company's government. Your Committee apprehend that the present

state, nature, and tendency of this trade are not generally understood.

[Sidenote: Trade to India formerly carried on chiefly in silver.]

Until the acquisition of great territorial revenues by the East India

Company, the trade with India was carried on upon the common principles

of commerce,--namely, by sending out such commodities as found a demand

in the India market, and, where that demand was not adequate to the

reciprocal call of the European market for Indian goods, by a large

annual exportation of treasure, chiefly in silver. In some years that

export has been as high as six hundred and eighty thousand pounds

sterling. The other European companies trading to India traded thither

on the same footing. Their export of bullion was probably larger in

proportion to the total of their commerce, as their commerce itself bore

a much larger proportion to the British than it does at this time or has

done for many years past. But stating it to be equal to the British,

the whole of the silver sent annually from Europe into Hindostan could

not fall very short of twelve or thirteen hundred thousand pounds a

year. This influx of money, poured into India by an emulation of all the

commercial nations of Europe, encouraged industry and promoted

cultivation in a high degree, notwithstanding the frequent wars with

which that country was harassed, and the vices which existed in its

internal government. On the other hand, the export of so much silver was

sometimes a subject of grudging and uneasiness in Europe, and a commerce

carried on through such a medium to many appeared in speculation of

doubtful advantage. But the practical demands of commerce bore down

those speculative objections. The East India commodities were so

essential for animating all other branches of trade, and for completing

the commercial circle, that all nations contended for it with the

greatest avidity. The English company flourished under this exportation

for a very long series of years. The nation was considerably benefited

both in trade and in revenue; and the dividends of the proprietors were

often high, and always sufficient to keep up the credit of the Company's

stock in heart and vigor.

[Sidenote: How trade carried on since.]

But at or very soon after the acquisition of the territorial revenues to

the English company, the period of which may be reckoned as completed

about the year 1765, a very great revolution took place in commerce as

well as in dominion; and it was a revolution which affected the trade of

Hindostan with all other European nations, as well as with that in whose

favor and by whose power it was accomplished. From that time bullion was

no longer regularly exported by the English East India Company to

Bengal, or any part of Hindostan; and it was soon exported in much

smaller quantities by any other nation. A new way of supplying the

market of Europe, by means of the British power and influence, was

invented: a species of trade (if such it may be called) by which it is

absolutely impossible that India should not be radically and

irretrievably ruined, although our possessions there were to be ordered

and governed upon principles diametrically opposite to those which now

prevail in the system and practice of the British company's

administration.

[Sidenote: Investments.]

A certain portion of the revenues of Bengal has been for many years set

apart to be employed in the purchase of goods for exportation to

England, and this is called the _Investment_. The greatness of this

investment has been the standard by which the merit of the Company's

principal servants has been too generally estimated; and this main cause

of the impoverishment of India has been generally taken as a measure of

its wealth and prosperity. Numerous fleets of large ships, loaded with

the most valuable commodities of the East, annually arriving in England,

in a constant and increasing succession, imposed upon the public eye,

and naturally gave rise to an opinion of the happy condition and growing

opulence of a country whose surplus productions occupied so vast a space

in the commercial world. This export from India seemed to imply also a

reciprocal supply, by which the trading capital employed in those

productions was continually strengthened and enlarged. But the payment

of a tribute, and not a beneficial commerce to that country, wore this

specious and delusive appearance.

[Sidenote: Increase of expenses.]

The fame of a great territorial revenue, exaggerated, as is usual in

such cases, beyond even its value, and the abundant fortunes of the

Company's officers, military and civil, which flowed into Europe with a

full tide, raised in the proprietors of East India stock a premature

desire of partaking with their servants in the fruits of that splendid

adventure. Government also thought they could not be too early in their

claims for a share of what they considered themselves as entitled to in

every foreign acquisition made by the power of this kingdom, through

whatever hands or by whatever means it was made. These two parties,

after some struggle, came to an agreement to divide between them the

profits which their speculation proposed to realize in England from the

territorial revenue in Bengal. About two hundred thousand pounds was

added to the annual dividends of the proprietors. Four hundred thousand

was given to the state, which, added to the old dividend, brought a

constant charge upon the mixed interest of Indian trade and revenue of

eight hundred thousand pounds a year. This was to be provided for at all

events.

By that vast demand on the territorial fund, the correctives and

qualifications which might have been gradually applied to the abuses in

Indian commerce and government were rendered extremely difficult.

[Sidenote: Progress of investments.]

The practice of an investment from the revenue began in the year 1766,

before arrangements were made for securing and appropriating an assured

fund for that purpose in the treasury, and for diffusing it from thence

upon the manufactures of the country in a just proportion and in the

proper season. There was, indeed, for a short time, a surplus of cash in

the treasury. It was in some shape to be sent home to its owners. To

send it out in silver was subject to two manifest inconveniences. First,

the country would be exhausted of its circulating medium. A scarcity of

coin was already felt in Bengal. Cossim Ali Khân, (the Nabob whom the

Company's servants had lately set up, and newly expelled,) during the

short period of his power, had exhausted the country by every mode of

extortion; in his flight he carried off an immense treasure, which has

been variously computed, but by none at less than three millions

sterling. A country so exhausted of its coin, and harassed by three

revolutions rapidly succeeding each other, was rather an object that

stood in need of every kind of refreshment and recruit than one which

could subsist under new evacuations. The next, and equally obvious

inconvenience, was to the Company itself. To send silver into Europe

would be to send it from the best to the worst market. When arrived, the

most profitable use which could be made of it would be to send it back

to Bengal for the purchase of Indian merchandise. It was necessary,

therefore, to turn the Company's revenue into its commerce. The first

investment was about five hundred thousand pounds, and care was taken

afterwards to enlarge it. In the years 1767 and 1768 it arose to seven

hundred thousand.

[Sidenote: Consequences of them.]

This new system of trade, carried on through the medium of power and

public revenue, very soon produced its natural effects. The loudest

complaints arose among the natives, and among all the foreigners who

traded to Bengal. It must unquestionably have thrown the whole

mercantile system of the country into the greatest confusion. With

regard to the natives, no expedient was proposed for their relief. The

case was serious with respect to European powers. The Presidency plainly

represented to the Directors, that some agreement should be made with

foreign nations for providing their investment to a certain amount, or

that the deficiencies then subsisting must terminate in an open rupture

with France. The Directors, pressed by the large payments in England,

were not free to abandon their system; and all possible means of

diverting the manufactures into the Company's investment were still

anxiously sought and pursued, until the difficulties of the foreign

companies were at length removed by the natural flow of the fortunes of

the Company's servants into Europe, in the manner which will be stated

hereafter.

But, with all these endeavors of the Presidency, the investment sunk in

1769, and they were even obliged to pay for a part of the goods to

private merchants in the Company's bonds, bearing interest. It was plain

that this course of business could not hold. The manufacturers of

Bengal, far from being generally in a condition to give credit, have

always required advances to be made to them; so have the merchants very

generally,--at least, since the prevalence of the English power in

India. It was necessary, therefore, and so the Presidency of Calcutta

represented the matter, to provide beforehand a year's advance. This

required great efforts; and they were made. Notwithstanding the famine

in 1770, which wasted Bengal in a manner dreadful beyond all example,

the investment, by a variety of successive expedients, many of them of

the most dangerous nature and tendency, was forcibly kept up; and even

in that forced and unnatural state it gathered strength almost every

year. The debts contracted in the infancy of the system were gradually

reduced, and the advances to contractors and manufacturers were

regularly made; so that the goods from Bengal, purchased from the

territorial revenues, from the sale of European goods, and from the

produce of the monopolies, for the four years which ended with 1780,

when the investment from the surplus revenues finally closed, were never

less than a million sterling, and commonly nearer twelve hundred

thousand pounds. This million is the lowest value of the goods sent to

Europe for which no satisfaction is made.[4]

[Sidenote: Remittances from Bengal to China and the Presidencies.]

About an hundred thousand pounds a year is also remitted from Bengal, on

the Company's account, to China; and the whole of the product of that

money flows into the direct trade from China to Europe. Besides this,

Bengal sends a regular supply in time of peace to those Presidencies

which are unequal to their own establishment. To Bombay the remittance

in money, bills, or goods, for none of which there is a return, amounts

to one hundred and sixty thousand pounds a year at a medium.

[Sidenote: Exports from England to India.]

The goods which are exported from Europe to India consist chiefly of

military and naval stores, of clothing for troops, and of other objects

for the consumption of the Europeans residing there; and, excepting some

lead, copper utensils and sheet copper, woollen cloth, and other

commodities of little comparative value, no sort of merchandise is sent

from England that is in demand for the wants or desires of the native

inhabitants.

[Sidenote: Bad effects of investment.]

When an account is taken of the intercourse (for it is not commerce)

which is carried on between Bengal and England, the pernicious effects

of the system of investment from revenue will appear in the strongest

point of view. In that view, the whole exported produce of the country,

so far as the Company is concerned, is not exchanged in the course of

barter, but is taken away without any return or payment whatsoever. In a

commercial light, therefore, England becomes annually bankrupt to Bengal

to the amount nearly of its whole dealing; or rather, the country has

suffered what is tantamount to an annual plunder of its manufactures and

its produce to the value of twelve hundred thousand pounds.

[Sidenote: Foreign companies.]

[Sidenote: Consequences of their trade.]

In time of peace, three foreign companies appear at first sight to bring

their contribution of trade to the supply of this continual drain. These

are the companies of France, Holland, and Denmark. But when the object

is considered more nearly, instead of relief, these companies, who from

their want of authority in the country might seem to trade upon a

principle merely commercial, will be found to add their full proportion

to the calamity brought upon Bengal by the destructive system of the

ruling power; because the greater part of the capital of all these

companies, and perhaps the whole capital of some of them, is furnished

exactly as the British is, out of the revenues of the country. The civil

and military servants of the English East India Company being

restricted in drawing bills upon Europe, and none of them ever making or

proposing an establishment in India, a very great part of their

fortunes, well or ill gotten, is in all probability thrown, as fast as

required, into the cash of these companies.

In all other countries, the revenue, following the natural course and

order of things, arises out of their commerce. Here, by a mischievous

inversion of that order, the whole foreign maritime trade, whether

English, French, Dutch, or Danish, arises from the revenues; and these

are carried out of the country without producing anything to compensate

so heavy a loss.

[Sidenote: Foreign companies' investments.]

Your Committee have not been able to discover the entire value of the

investment made by foreign companies. But, as the investment which the

English East India Company derived from its revenues, and even from its

public credit, is for the year 1783 to be wholly stopped, it has been

proposed to private persons to make a subscription for an investment on

their own account. This investment is to be equal to the sum of

800,000_l._ Another loan has been also made for an investment on the

Company's account to China of 200,000_l._ This makes a million; and

there is no question that much more could be readily had for bills upon

Europe. Now, as there is no doubt that the whole of the money remitted

is the property of British subjects, (none else having any interest in

remitting to Europe,) it is not unfair to suppose that a very great

part, if not the whole, of what may find its way into this new channel

is not newly created, but only diverted from those channels in which it

formerly ran, that is, the cash of the foreign trading companies.

[Sidenote: Of the silver sent to China.]

Besides the investment made in goods by foreign companies from the funds

of British subjects, these subjects have been for some time in the

practice of sending very great sums in gold and silver directly to China

on their own account. In a memorial presented to the Governor-General

and Council, in March, 1782, it appears that the principal money lent by

British subjects to one company of merchants in China then amounted to

seven millions of dollars, about one million seven hundred thousand

pounds sterling; and not the smallest particle of silver sent to China

ever returns to India. It is not easy to determine in what proportions

this enormous sum of money has been sent from Madras or from Bengal; but

it equally exhausts a country belonging to this kingdom, whether it

comes from the one or from the other.

[Sidenote: Revenue above the investment, how applied.]

[Sidenote: Allowance to Nabob of Bengal.]

[Sidenote: How reduced.]

But that the greatness of all these drains, and their effects, may be

rendered more visible, your Committee have turned their consideration to

the employment of those parts of the Bengal revenue which are not

employed in the Company's own investments for China and for Europe. What

is taken over and above the investment (when any investment can be made)

from the gross revenue, either for the charge of collection or for civil

and military establishments, is in time of peace two millions at the

least. From the portion of that sum which goes to the support of civil

government the natives are almost wholly excluded, as they are from the

principal collections of revenue. With very few exceptions, they are

only employed as servants and agents to Europeans, or in the inferior

departments of collection, when it is absolutely impossible to proceed

a step without their assistance. For some time after the acquisition of

the territorial revenue, the sum of 420,000_l._ a year was paid,

according to the stipulation of a treaty, to the Nabob of Bengal, for

the support of his government. This sum, however inconsiderable,

compared to the revenues of the province, yet, distributed through the

various departments of civil administration, served in some degree to

preserve the natives of the better sort, particularly those of the

Mahomedan profession, from being utterly ruined. The people of that

persuasion, not being so generally engaged in trade, and not having on

their conquest of Bengal divested the ancient Gentoo proprietors of

their lands of inheritance, had for their chief, if not their sole

support, the share of a moderate conqueror in all offices, civil and

military. But your Committee find that this arrangement was of a short

duration. Without the least regard to the subsistence of this innocent

people, or to the faith of the agreement on which they were brought

under the British government, this sum was reduced by a new treaty to

320,000_l._, and soon after, (upon a pretence of the present Nabob's

minority, and a temporary sequestration for the discharge of his debts,)

to 160,000_l._: but when he arrived at his majority, and when the debts

were paid, (if ever they were paid,) the sequestration still continued;

and so far as the late advices may be understood, the allowance to the

Nabob appears still to stand at the reduced sum of 160,000_l._

[Sidenote: Native officers.]

The other resource of the Mahomedans, and of the Gentoos of certain of

the higher castes, was the army. In this army, nine tenths of which

consists of natives, no native, of whatever description, holds any rank

higher than that of a _Subahdar Commandant_, that is, of an officer

below the rank of an English subaltern, who is appointed to each company

of the native soldiery.

[Sidenote: All lucrative employments in the hands of the English.]

Your Committee here would be understood to state the ordinary

establishment: for the war may have made some alteration. All the

honorable, all the lucrative situations of the army, all the supplies

and contracts of whatever species that belong to it, are solely in the

hands of the English; so that whatever is beyond the mere subsistence of

a common soldier and some officers of a lower rank, together with the

immediate expenses of the English officers at their table, is sooner or

later, in one shape or another, sent out of the country.

Such was the state of Bengal even in time of profound peace, and before

the whole weight of the public charge fell upon that unhappy country for

the support of other parts of India, which have been desolated in such a

manner as to contribute little or nothing to their own protection.

[Sidenote: Former state of trade.]

Your Committee have given this short comparative account of the effects

of the maritime traffic of Bengal, when in its natural state, and as it

has stood since the prevalence of the system of an investment from the

revenues. But before the formation of that system Bengal did by no means

depend for its resources on its maritime commerce. The inland trade,

from whence it derived a very great supply of silver and gold and many

kinds of merchantable goods, was very considerable. The higher provinces

of the Mogul Empire were then populous and opulent, and intercourse to

an immense amount was carried on between them and Bengal. A great trade

also passed through these provinces from all the countries on the

frontier of Persia, and the frontier provinces of Tartary, as well as

from Surat and Baroach on the western side of India. These parts opened

to Bengal a communication with the Persian Gulf and with the Red Sea,

and through them with the whole Turkish and the maritime parts of the

Persian Empire, besides the commercial intercourse which it maintained

with those and many other countries through its own seaports.

[Sidenote: And the trade to Turkey.]

During that period the remittances to the Mogul's treasury from Bengal

were never very large, at least for any considerable time, nor very

regularly sent; and the impositions of the state were soon repaid with

interest through the medium of a lucrative commerce. But the disorders

of Persia, since the death of Kouli Khân, have wholly destroyed the

trade of that country; and the trade to Turkey, by Jidda and Bussorah,

which was the greatest and perhaps best branch of the Indian trade, is

very much diminished. The fall of the throne of the Mogul emperors has

drawn with it that of the great marts of Agra and Delhi. The utmost

confusion of the northwestern provinces followed this revolution, which

was not absolutely complete until it received the last hand from Great

Britain. Still greater calamities have fallen upon the fine provinces of

Rohilcund and Oude, and on the countries of Corah and Allahabad. By the

operations of the British arms and influence, they are in many places

turned to mere deserts, or so reduced and decayed as to afford very few

materials or means of commerce.

[Sidenote: State of trade in the Carnatic.]

Such is the actual condition of the trade of Bengal since the

establishment of the British power there. The commerce of the Carnatic,

as far as the inquiries of your Committee have extended, did not appear

with a better aspect, even before the invasion of Hyder Ali Khân, and

the consequent desolation, which for many years to come must exclude it

from any considerable part of the trading system.

It appears, on the examination of an intelligent person concerned in

trade, and who resided at Madras for several years, that on his arrival

there, which was in the year 1767, that city was in a flourishing

condition, and one of the first marts in India; but when he left it, in

1779, there was little or no trade remaining, and but one ship belonging

to the whole place. The evidence of this gentleman purports, that at his

first acquaintance with the Carnatic it was a well-cultivated and

populous country, and as such consumed many articles of merchandise;

that at his departure he left it much circumscribed in trade, greatly in

the decline as to population and culture, and with a correspondent decay

of the territorial revenue.

Your Committee find that there has also been from Madras an investment

on the Company's account, taking one year with another, very nearly on

the same principles and with the same effects as that from Bengal; and

they think it is highly probable, that, besides the large sums remitted

directly from Madras to China, there has likewise been a great deal on a

private account, for that and other countries, invested in the cash of

foreign European powers trading on the coast of Coromandel. But your

Committee have not extended their inquiries relative to the commerce of

the countries dependent on Madras so far as they have done with regard

to Bengal. They have reason to apprehend that the condition is rather

worse; but if the House requires a more minute examination of this

important subject, your Committee is willing to enter into it without

delay.

III.--EFFECT OF THE REVENUE INVESTMENT ON THE COMPANY.

Hitherto your Committee has considered this system of revenue

investment, substituted in the place of a commercial link between India

and Europe, so far as it affects India only: they are now to consider it

as it affects the Company. So long as that corporation continued to

receive a vast quantity of merchantable goods without any disbursement

for the purchase, so long it possessed wherewithal to continue a

dividend to pay debts, and to contribute to the state. But it must have

been always evident to considerate persons, that this vast extraction of

wealth from a country lessening in its resources in proportion to the

increase of its burdens was not calculated for a very long duration. For

a while the Company's servants kept up this investment, not by improving

commerce, manufacture, or agriculture, but by forcibly raising the

land-rents, on the principles and in the manner hereafter to be

described. When these extortions disappointed or threatened to

disappoint expectation, in order to purvey for the avarice which raged

in England, they sought for expedients in breaches of all the agreements

by which they were bound by any payment to the country powers, and in

exciting disturbances among all the neighboring princes. Stimulating

their ambition, and fomenting their mutual animosities, they sold to

them reciprocally their common servitude and ruin.

The Governor-General, Mr. Hastings, and the Council, tell the Directors,

"that the supply for the investment has arisen from _casual_ and

_extraordinary_ resources, which they could not expect _always_ to

command." In an earlier minute he expresses himself still more

distinctly: he says, "If the internal resources of a state fail it, or

are not equal to its _occasional_ wants, whence can it obtain immediate

relief but from _external_ means?" Indeed, the investment has not been

for any long time the natural product of the revenue of Bengal. When, by

the vast charge and by the ill return of an evil political and military

traffic, and by a prodigal increase of establishments, and a profuse

conduct in distributing agencies and contracts, they found themselves

under difficulties, instead of being cured of their immoral and

impolitic delusion, they plunged deeper into it, and were drawn from

expedient to expedient for the supply of the investment into that

endless chain of wars which this House by its resolutions has so justly

condemned. At home these measures were sometimes countenanced, sometimes

winked at, sometimes censured, but always with an acceptance of whatever

profit they afforded.

At length, the funds for the investment and for these wars together

could no longer be supplied. In the year 1778 the provision for the

investment from the revenues and from the monopolies stood very high. It

was estimated at a million four hundred thousand pounds; and of this it

appears that a great deal was realized. But this was the high flood-tide

of the investment; for in that year they announce its probable decline,

and that such extensive supplies could not be continued. The advances to

the Board of Trade became less punctual, and many disputes arose about

the time of making them. However, knowing that all their credit at home

depended on the investment, or upon an opinion of its magnitude, whilst

they repeat their warning of a probable deficiency, and that their

"finances bore an unfavorable aspect," in the year 1779 they rate their

investment still higher. But their payments becoming less and less

regular, and the war carrying away all the supplies, at length Mr.

Hastings, in December, 1780, denounced sentence of approaching

dissolution to this system, and tells the Directors that "he bore too

high a respect for their characters to treat them with the management of

a preparatory and gradual introduction to an unpleasing report: that it

is the _only substantial_ information he shall have to convey in that

letter." In confidence, therefore, of their fortitude, he tells them

without ceremony, "that there will be a necessity of making a large

reduction, or possibly a _total suspension_, of their investment;--that

they had already been reduced to borrow near 700,000_l._ This resource,"

says he, "cannot last; it must cease at a certain period, and that

perhaps not far _distant_."

He was not mistaken in his prognostic. Loans now becoming the regular

resource for retrieving the investment, whose ruin was inevitable, the

Council enable the Board of Trade, in April, 1781, to grant certificates

for government bonds at eight per cent interest for about 650,000_l._

The investment was fixed at 900,000_l._

But now another alarming system appeared. These new bonds overloaded

the market. Those which had been formerly issued were at a discount; the

Board of Trade was obliged to advance, therefore, a fourth more than

usual to the contractors. This seemed to satisfy that description of

dealers. But as those who bought on agency were limited to no terms of

mutual advantage, and the bonds on the new issue falling from three to

eight, nine, and ten per cent discount, the agents were unable to

furnish at the usual prices. Accordingly a discount was settled on such

terms as could be made: the lowest discount, and that at two places

only, was at four per cent; which, with the interest on the bonds, made

(besides the earlier advance) at the least twelve per cent additional

charge upon all goods. It was evident, that, as the investment, instead

of being supported by the revenues, was sunk by the fall of their

credit, so the net revenues were diminished by the daily accumulation of

an interest accruing on account of the investment. What was done to

alleviate one complaint thus aggravating the other, and at length

proving pernicious to both, this trade on bonds likewise came to its

period.

Your Committee has reason to think that the bonds have since that time

sunk to a discount much greater even than what is now stated. The Board

of Trade justly denominates their resource for that year "the sinking

credit of a paper currency, laboring, from the uncommon scarcity of

specie, under disadvantages scarcely surmountable." From this they value

themselves "on having effected an _ostensible_ provision, at least for

that investment." For 1783 nothing appears even ostensible.

By this failure a total revolution ensued, of the most extraordinary

nature, and to which your Committee wish to call the particular

attention of the House. For the Council-General, in their letter of the

8th of April, 1782, after stating that they were disappointed in their

expectations, (how grounded it does not appear,) "thought that they

should be able to spare a sum to the Board of Trade,"--tell the Court of

Directors, "that they had adopted a _new_ method of keeping up the

investment, by private subscribers for eighty lacs of rupees, which will

find _cargoes for their ships_ on the usual terms of privilege, _at the

risk of the individuals_, and is to be repaid to them _according to the

produce of the sales in England_,"--and they tell the Directors, that "a

copy of the plan makes a number in their separate dispatches over land."

It is impossible, in reporting this revolution to the House, to avoid

remarking with what fidelity Mr. Hastings and his Council have adhered

to the mode of transmitting their accounts which your Committee found it

necessary to mark and censure in their First Report. Its pernicious

tendency is there fully set forth. They were peculiarly called on for a

most accurate state of their affairs, in order to explain the necessity

of having recourse to such a scheme, as well as for a full and correct

account of the scheme itself. But they send only the above short minute

by one dispatch over land, whilst the copy of the plan itself, on which

the Directors must form their judgment, is sent separately in another

dispatch over land, which has never arrived. A third dispatch, which

also contained the plan, was sent by a sea conveyance, and arrived late.

The Directors have, for very obvious reasons, ordered, by a strict

injunction, that they should send _duplicates of all_ their dispatches

by _every ship_. The spirit of this rule, perhaps, ought to extend to

every mode of conveyance. In this case, so far from sending a duplicate,

they do not send even one perfect account. They announce a plan by one

conveyance, and they send it by another conveyance, with other delays

and other risks.

At length, at nearly four months' distance, the plan has been received,

and appears to be substantially that which had been announced, but

developing in the particulars many new circumstances of the greatest

importance. By this plan it appears that the subscription, even in idea

or pretence, is not for the use of the Company, but that the subscribers

are united into a sort of society for the remitting their _private

fortunes_: the goods, indeed, are said to be _shipped on the Company's

account_, and they are directed to be sold on the same account, and at

the usual periods of sales; but, after the payment of duties, and such

other allowances as they choose to make, in the eleventh article they

provide "that _the remainder of the sales shall revert to the

subscribers_, and be declared to be _their property_, and divided in

proportion to _their_ respective shares." The compensation which they

allow in this plan to their masters for their brokerage is, that, if,

after deducting all the charges which they impose, "the amount of the

sales _should be found_ to exceed two shillings and twopence for the

current rupee of the invoice account, it shall be taken by the Company."

For the management of this concern in Bengal they choose commissioners

by their own authority. By the same authority they form them into a

body, they put them under rules and regulations, and they empower them

also to make regulations of their own. They remit, by the like

authority, the duties to which all private trade is subject; and they

charge the whole concern with seven per cent, to be paid from the net

produce of the sales in England, as a recompense to the commissioners:

for this the commissioners contract to bear all the charges on the goods

to the time of shipping.

The servants having formed this plan of trade, and a new commission for

the conduct of it, on their private account, it is a matter of

consideration to know who the commissioners are. They turn out to be the

three senior servants of the Company's Board of Trade, who choose to

take upon them to be the factors of others for large emoluments, whilst

they receive salaries of two thousand pounds and fifteen hundred pounds

a year from the Company. As the Company have no other fund than the new

investment from whence they are to be paid for the care of their

servants' property, this commission and those salaries being to take

place of their brokerage, they in effect render it very difficult, if

not impossible, for them to derive advantage from their new occupation.

As to the benefit of this _plan_: besides preventing the loss which must

happen from the Company's ships returning empty to Europe, and the

stopping of all trade between India and England, the authors of it

state, that it will "_open a new channel_ of remittance, and abolish the

practice, by precluding the necessity, of remitting _private fortunes_

by _foreign bottoms_, and that it may lead to some _permanent mode_ for

remittance of private fortunes, and of combining it with the regular

provision of the Company's investment,--that it will yield _some_ profit

to the Company without risk, and the national gain will be the same as

upon the regular trade."

As to the combination of this mode of remittance with the Company's

investment, nothing can be affirmed concerning it until some

satisfactory assurance can be held out that such an investment can ever

be realized. Mr. Hastings and the gentlemen of the Council have not

afforded any ground for such an expectation. That the Indian trade may

become a permanent vehicle of the private fortunes of the Company's

servants is very probable,--that is, as permanent as the means of

acquiring fortunes in India; but that _some profit_ will accrue to the

Company is absolutely impossible. The Company are to bear all the charge

outwards, and a very great part of that homewards; and their only

compensation is the surplus commission on the sale of other people's

goods. The nation will undoubtedly avoid great loss and detriment, which

would be the inevitable consequence of the total cessation of the trade

with Bengal and the ships returning without cargoes. But if this

temporary expedient should be improved into a system, no occasional

advantages to be derived from it would be sufficient to balance the

mischiefs of finding a great Parliamentary corporation turned into a

vehicle for remitting to England the private fortunes of those for whose

benefit the territorial possessions in India are in effect and substance

under this project to be _solely_ held.

By this extraordinary scheme the Company is totally overturned, and all

its relations inverted. From being a body concerned in trade on their

own account, and employing their servants as factors, the servants have

at one stroke taken the whole trade into their own hands, on their own

capital of 800,000_l._, at their own risk, and the Company are become

agents and factors to them, to sell by commission _their_ goods for

_their_ profit.

To enable your Committee to form some judgment upon the profit which may

accrue to the Company from its new relation and employment, they

directed that an estimate should be made of the probable proceeds of an

investment conducted on the principles of that intended to be realized

for 1783. By this estimate, which is subjoined,[5] it appears to your

Committee, that, so far from any surplus profit from this transaction,

the Bengal adventurers themselves, instead of realizing 2_s._ 2_d._ the

rupee, (the standard they fix for their payment,) will not receive the

1_s._ 9_d._ which is its utmost value in silver at the Mint, nor

probably above 1_s._ 5_d._ With this certain loss before their eyes, it

is impossible that they can ever complete their subscription, unless, by

management among themselves, they should be able to procure the goods

for their own account upon other terms than those on which they

purchased them for their masters, or unless they have for the supply of

the Company on their hands a quantity of goods which they cannot

otherwise dispose of. This latter case is not very improbable, from

their proposing to send ten sixteenths of the whole investment in

silk,--which, as will be seen hereafter, the Company has prohibited to

be sent on their account, as a disadvantageous article. Nothing but the

servants being overloaded can rationally account for their choice of so

great a proportion of so dubious a commodity.

On the state made by two reports of a committee of the General Court in

1782, their affairs were even then reduced to a low ebb. But under the

arrangement announced by Mr. Hastings and his colleagues, it does not

appear, after this period of the servants' investment, from what fund

the proprietors are to make any dividend at all. The objects of the sale

from whence the dividend is to arise are not _their_ goods: they stand

accountable to others for the whole probable produce. The state of the

Company's commerce will therefore become an object of serious

consideration: an affair, as your Committee apprehends, of as much

difficulty as ever tried the faculties of this House. For, on the one

hand, it is plain that the system of providing the Company's import into

Europe, resting almost wholly by an investment from its territorial

revenues, has failed: during its continuance it was supported on

principles fatal to the prosperity of that country. On the other hand,

if the nominal commerce of the Company is suffered to be carried on for

the account of the servants abroad, by investing the emoluments made in

their stations, these emoluments are therefore inclusively authorized,

and with them the practices from which they accrue. All Parliamentary

attempts to reform this system will be contradictory to its institution.

If, for instance, five hundred thousand pounds sterling annually be

necessary for this kind of investment, any regulation which may prevent

the acquisition of that sum operates against the investment which is the

end proposed by the plan.

On this new scheme, (which is neither calculated for a future security

nor for a present relief to the Company,) it is not visible in what

manner the settlements in India can be at all upheld. The gentlemen in

employments abroad call for the whole produce of the year's investment

from Bengal; but for the payment of the counter-investment from Europe,

which is for the far greater part sent out for the support of their

power, no provision at all is made: they have not, it seems, agreed that

it should be charged to their account, or that any deduction should be

made for it from the produce of their sales in Leadenhall Street. How

far such a scheme is preferable to the total suspension of trade your

Committee cannot positively determine. In all likelihood, extraordinary

expedients were necessary; but the causes which induced this necessity

ought to be more fully inquired into; for the last step in a series of

conduct may be justifiable upon principles that suppose great blame in

those which preceded it.

After your Committee had made the foregoing observations upon the plan

of Mr. Hastings and his colleagues, transmitted to the Court of

Directors, an extract of the Madras Consultations was a few days ago

laid before us. This extract contains a letter from the Governor-General

and Council of Bengal to the Presidency of Fort St. George, which

affords a very striking, though to your Committee by no means an

unexpected, picture of the instability of their opinions and conduct. On

the 8th of April the servants had regularly formed and digested the

above-mentioned plan, which was to form the basis for the investment of

their own fortunes, and to furnish the sole means of the commercial

existence of their masters. Before the 10th of the following May, which

is the date of their letter to Madras, they inform Lord Macartney that

they had fundamentally altered the whole scheme. "Instead," say they,

"of allowing the subscribers to retain an interest in the goods, they

are to be provided entirely on account of the Company, and transported

_at their risk_; and the subscribers, instead of receiving certificates

payable out of the produce of the sales in Europe, are to be granted

receipts, on the payment of their advances, bearing an interest of eight

per cent per annum, until exchanged for drafts on the Court of

Directors, payable 365 days after sight, at the rate of two shillings

per current rupee,--which drafts shall be granted in the proper time, of

three eighths of the amount subscribed, on the 31st of December next,

and the remaining five eighths on the 31st of December, 1783."

The plan of April divests the Company of all property in Bengal goods

transported to Europe: but in recompense they are freed from all the

risk and expense, they are not loaded with interest, and they are not

embarrassed with bills. The plan of May reinstates them in their old

relation: but in return, their revenues in Bengal are charged with an

interest of eight per cent on the sum subscribed, until bills shall be

drawn; they are made proprietors of cargoes purchased, under the

disadvantage of that interest, at their own hazard; they are subjected

to all losses; and they are involved in Europe for payments of bills to

the amount of eighty lacs of rupees, at two shillings the rupee,--that

is, in bills for eight hundred thousand pounds sterling. It is probably

on account of the previous interest of eight per cent that the value of

the rupee on this scheme is reduced. Mr. Hastings and his colleagues

announce to Lord Macartney no other than the foregoing alteration in

their plan.

It is discouraging to attempt any sort of observation on plans thus

shifting their principle whilst their merits are under examination. The

judgment formed on the scheme of April has nothing to do with the

project of May. Your Committee has not suppressed any part of the

reflections which occurred to them on the former of these plans: first,

because the Company knows of no other by any regular transmissions;

secondly, because it is by no means certain that before the expiration

of June the Governor-General and Council may not revert to the plan of

April. They speak of that plan as likely to be, or make a part of one

that shall be, _permanent_. Many reasons are alleged by its authors in

its favor, grounded on the state of their affairs; none whatever are

assigned for the alteration. It is, indeed, morally certain that

persons who had money to remit must have made the same calculation which

has been made by the directions of your Committee, and the result must

have been equally clear to them,--which is, that, instead of realizing

two shillings and twopence the rupee on their subscription, as they

proposed, they could never hope to see more than one shilling and

ninepence. This calculation probably shook the main pillar of the

project of April. But, on the other hand, as the subscribers to the

second scheme can have no certain assurance that the Company will accept

bills so far exceeding their allowance in this particular, the necessity

of remitting their fortunes may beat them back to their old ground. The

Danish Company was the only means of remitting which remained. Attempts

have been made with success to revive a Portuguese trade for that

purpose. It is by no means clear whether Mr. Hastings and his colleagues

will adhere to either of the foregoing plans, or, indeed, whether any

investment at all to that amount can be realized; because nothing but

the convenience of remitting the gains of British subjects to London can

support any of these projects.

The situation of the Company, under this perpetual variation in the

system of their investment, is truly perplexing. The manner in which

they arrive at any knowledge of it is no less so. The letter to Lord

Macartney, by which the variation is discovered, was not intended for

transmission to the Directors. It was merely for the information of

those who were admitted to a share of the subscription at Madras. When

Mr. Hastings sent this information to those subscribers, he might well

enough have presumed an event to happen which did happen,--that is,

that a vessel might be dispatched from Madras to Europe: and indeed, by

that, and by every devisable means, he ought not only to have apprised

the Directors of this most material change in the plan of the

investment, but to have entered fully into the grounds and reasons of

his making it.

It appears to your Committee that the ships which brought to England the

plan of the 8th of April did not sail from Bengal until the 1st of May.

If the change had been in contemplation for any time before the 30th of

April, two days would have sufficed to send an account of it, and it

might have arrived along with the plan which it affected. If, therefore,

such a change was in agitation before the sailing of the ships, and yet

was concealed when it might have been communicated, the concealment is

censurable. It is not improbable that some change of the kind was made

or meditated before the sailing of the ships for Europe: for it is

hardly to be imagined that reasons wholly unlooked-for should appear for

setting aside a plan concerning the success of which the Council-General

seemed so very confident, that a new one should be proposed, that its

merits should be discussed among the moneyed men, that it should be

adopted in Council, and officially ready for transmission to Madras, in

twelve or thirteen days. In this perplexity of plan and of transmission,

the Court of Directors may have made an arrangement of their affairs on

the groundwork of the first scheme, which was officially and

authentically conveyed to them. The fundamental alteration of that plan

in India might require another of a very different kind in England,

which the arrangements taken in consequence of the first might make it

difficult, if not impossible, to execute. What must add to the confusion

is, that the alteration has not the regular and official authority of

the original plan, and may be presumed to indicate with certainty

nothing more than that the business is _again_ afloat, and that no

scheme is finally determined on. Thus the Company is left without any

fixed data upon which they can make a rational disposition of their

affairs.

The fact is, that the principles and economy of the Company's trade have

been so completely corrupted by turning it into a vehicle for tribute,

that, whenever circumstances require it to be replaced again upon a

bottom truly commercial, hardly anything but confusion and disasters can

be expected as the first results. Even before the acquisition of the

territorial revenues, the system of the Company's commerce was not

formed upon principles the most favorable to its prosperity; for,

whilst, on the one hand, that body received encouragement by royal and

Parliamentary charters, was invested with several ample privileges, and

even with a delegation of the most essential prerogatives of the

crown,--on the other, its commerce was watched with an insidious

jealousy, as a species of dealing dangerous to the national interests.

In that light, with regard to the Company's imports, there was a total

prohibition from domestic use of the most considerable articles of their

trade,--that is, of all silk stuffs, and stained and painted cottons.

The British market was in a great measure interdicted to the British

trader. Whatever advantages might arise to the general trading interests

of the kingdom by this restraint, its East India interest was

undoubtedly injured by it. The Company is also, and has been from a

very early period, obliged to furnish the Ordnance with a quantity of

saltpetre at a certain price, without any reference to the standard of

the markets either of purchase or of sale. With regard to their export,

they were put also under difficulties upon very mistaken notions; for

they were obliged to export annually a certain proportion of British

manufactures, even though they should find for them in India none or but

an unprofitable want. This compulsory export might operate, and in some

instances has operated, in a manner more grievous than a tax to the

amount of the loss in trade: for the payment of a tax is in general

divided in unequal portions between the vender and consumer, the largest

part falling upon the latter; in the case before us the tax may be as a

dead charge on the trading capital of the Company.

The spirit of all these regulations naturally tended to weaken, in the

very original constitution of the Company, the main-spring of the

commercial machine, _the principles of profit and loss_. And the

mischief arising from an inattention to those principles has constantly

increased with the increase of its power. For when the Company had

acquired the rights of sovereignty in India, it was not to be expected

that the attention to profit and loss would have increased. The idea of

remitting tribute in goods naturally produced an indifference to their

price and quality,--the goods themselves appearing little else than a

sort of package to the tribute. Merchandise taken as tribute, or bought

in lieu of it, can never long be of a kind or of a price fitted to a

market which stands solely on its commercial reputation. The

indifference of the mercantile sovereign to his trading advantages

naturally relaxed the diligence of his subordinate factor-magistrates

through all their gradations and in all their functions; it gave rise,

at least so far as the principal was concerned, to much neglect of price

and of goodness in their purchases. If ever they showed any

extraordinary degrees of accuracy and selection, it would naturally be

in favor of that interest to which they could not be indifferent. The

Company might suffer above, the natives might suffer below; the

intermediate party must profit to the prejudice of both.

Your Committee are of opinion that the Company is now arrived at that

point, when, the investment from surplus revenue or from the spoil of

war ceasing, it is become much more necessary to fix its commerce upon a

commercial basis. And this opinion led your Committee to a detailed

review of all the articles of the Indian traffic upon which the profit

and loss was steady; and we have chosen a period of four years, during

the continuance of the revenue investment, and prior to any borrowing or

any extraordinary drawing of bills, in order to find out how far the

trade, under circumstances when it will be necessary to carry it on by

borrowing, or by bills, or by exportation of bullion, can be sustained

in the former course, so as to secure the capital and to afford a

reasonable dividend. And your Committee find that in the first four

years the investment from Bengal amounted to 4,176,525_l._; upon

2,260,277_l._ there was a gain of 186,337_l._, and upon 1,916,248_l._ a

loss of 705,566_l._: so that the excess of loss above gain, upon the

whole of the foregoing capital, was in the four years no less than

519,229_l._

If the trade were confined to Bengal, and the Company were to trade on

those terms upon a capital borrowed at eight per cent Indian interest,

their revenues in that province would be soon so overpowered with debt,

that those revenues, instead of supporting the trade, would be totally

destroyed by it. If, on the other hand, the Company traded upon bills

with every advantage, far from being in a condition to divide the

smallest percentage, their bankruptcy here would be inevitable.

Your Committee then turned to the trade of the other factories and

Presidencies, and they constantly found, that, as the power and dominion

of the Company was less, their profit on the goods was greater. The

investments of Madras, Bombay, and Bencoolen have, in the foregoing four

years, upon a capital of 1,151,176_l._, had a gain upon the whole of

329,622_l._ The greatest of all is that of Bencoolen, which, on a

capital of 76,571_l._, produced a profit of 107,760_l._ This, however,

is but a small branch of the Company's trade. The trade to China, on a

capital of 1,717,463_l._, produced an excess of gain amounting to

874,096_l._, which is about fifty per cent. But such was the evil

influence of the Bengal investment, that not only the profits of the

Chinese trade, but of all the lucrative branches taken together, were so

sunk and ingulfed in it, that the whole profit on a capital of

7,045,164_l._ reached to no more than 684,489_l._, that is, to

189,607_l._ less than the profit on the Chinese trade alone,--less than

the total profits on the gainful trades taken together, 520,727_l._

It is very remarkable, that in the year 1778, when the Bengal investment

stood at the highest, that is, so high as 1,223,316_l._, though the

Chinese trade produced an excess of gain in that year of 209,243_l._,

and that no loss of moment could be added to that of Bengal, (except

about 45,000_l._ on the Bombay trade,) the whole profit of a capital of

2,040,787_l._ amounted only to the sum of 9,480_l._

The detail of the articles in which loss was incurred or gain made will

be found in the Appendix, No. 24. The circumstances of the time have

rendered it necessary to call up a vigorous attention to this state of

the trade of the Company between Europe and India.

INTERNAL TRADE OF BENGAL.

The internal trade of Bengal has next attracted the inquiries of your

Committee.

The great and valuable articles of the Company's investment, drawn from

the articles of internal trade, are raw silk, and various descriptions

of piece-goods made of silk and cotton. These articles are not under any

formal monopoly; nor does the Company at present exercise a _declared_

right of preëmption with regard to them. But it does not appear that the

trade in these particulars is or can be perfectly free,--not so much on

account of any direct measures taken to prevent it as from the

circumstances of the country, and the manner of carrying on business

there: for the present trade, even in these articles, is built from the

ruins of old monopolies and preëmptions, and necessarily partakes of the

nature of its materials.

In order to show in what manner manufactures and trade so constituted

contribute to the prosperity of the natives, your Committee conceives it

proper to take, in this place, a short general view of the progress of

the English policy with relation to the commerce of Bengal, and the

several stages and gradations by which it has been brought into its

actual state. The modes of abuse, and the means by which commerce has

suffered, will be considered in greater detail under the distinct heads

of those objects which have chiefly suffered by them.

During the time of the Mogul government, the princes of that race, who

omitted nothing for the encouragement of commerce in their dominions,

bestowed very large privileges and immunities on the English East India

Company, exempting them from several duties to which their natural-born

subjects were liable. The Company's _dustuck_, or passport, secured to

them this exemption at all the custom-houses and toll-bars of the

country. The Company, not being able or not choosing to make use of

their privilege to the full extent to which it might be carried,

indulged their servants with a qualified use of their passport, under

which, and in the name of the Company, they carried on a private trade,

either by themselves or in society with natives, and thus found a

compensation for the scanty allowances made to them by their masters in

England. As the country government was at that time in the fulness of

its strength, and that this immunity existed by a double connivance, it

was naturally kept within tolerable limits.

But by the revolution in 1757 the Company's servants obtained a mighty

ascendant over the native princes of Bengal, who owed their elevation to

the British arms. The Company, which was new to that kind of power, and

not yet thoroughly apprised of its real character and situation,

considered itself still as a trader in the territories of a foreign

potentate, in the prosperity of whose country it had neither interest

nor duty. The servants, with the same ideas, followed their fortune in

the channels in which it had hitherto ran, only enlarging them with the

enlargement of their power. For their first ideas of profit were not

official; nor were their oppressions those of ordinary despotism. The

first instruments of their power were formed out of evasions of their

ancient subjection. The passport of the Company in the hands of its

servants was no longer under any restraint; and in a very short time

their immunity began to cover all the merchandise of the country. Cossim

Ali Khân, the second of the Nabobs whom they had set up, was but ill

disposed to the instruments of his greatness. He bore the yoke of this

imperious commerce with the utmost impatience: he saw his subjects

excluded as aliens from their own trade, and the revenues of the prince

overwhelmed in the ruin of the commerce of his dominions. Finding his

reiterated remonstrances on the extent and abuse of the passport

ineffectual, he had recourse to an unexpected expedient, which was, to

declare his resolution at once to annul all the duties on trade, setting

it equally free to subjects and to foreigners.

Never was a method of defeating the oppressions of monopoly more

forcible, more simple, or more equitable: no sort of plausible objection

could be made; and it was in vain to think of evading it. It was

therefore met with the confidence of avowed and determined injustice.

The Presidency of Calcutta openly denied to the prince the power of

protecting the trade of his subjects by the remission of his own duties.

It was evident that his authority drew to its period: many reasons and

motives concurred, and his fall was hastened by the odium of the

oppressions which he exercised voluntarily, as well as of those to which

he was obliged to submit.

When this example was made, Jaffier Ali Khân, who had been deposed to

make room for the last actor, was brought from penury and exile to a

station the terms of which he could not misunderstand. During his life,

and in the time of his children who succeeded to him, parts of the

territorial revenue were assigned to the Company; and the whole, under

the name of residency at the Nabob's court, was brought, directly or

indirectly, under the control of British subjects. The Company's

servants, armed with authorities delegated from the nominal government,

or attended with what was a stronger guard, the fame of their own power,

appeared as magistrates in the markets in which they dealt as traders.

It was impossible for the natives in general to distinguish, in the

proceedings of the same persons, what was transacted on the Company's

account from what was done on their own; and it will ever be so

difficult to draw this line of distinction, that as long as the Company

does, directly or indirectly, aim at any advantage to itself in the

purchase of any commodity whatever, so long will it be impracticable to

prevent the servants availing themselves of the same privilege.

The servants, therefore, for themselves or for their employers,

monopolized every article of trade, foreign and domestic: not only the

raw merchantable commodities, but the manufactures; and not only these,

but the necessaries of life, or what in these countries habit has

confounded with them,--not only silk, cotton, piece-goods, opium,

saltpetre, but not unfrequently salt, tobacco, betel-nut, and the grain

of most ordinary consumption. In the name of the country government

they laid on or took off, and at their pleasure heightened or lowered,

all duties upon goods: the whole trade of the country was either

destroyed or in shackles. The acquisition of the Duanné, in 1765,

bringing the English into the immediate government of the country in its

most essential branches, extended and confirmed all the former means of

monopoly.

In the progress of these ruinous measures through all their details,

innumerable grievances were suffered by the native inhabitants, which

were represented in the strongest, that is, their true colors, in

England. Whilst the far greater part of the British in India were in

eager pursuit of the forced and exorbitant gains of a trade carried on

by power, contests naturally arose among the competitors: those who were

overpowered by their rivals became loud in their complaints to the Court

of Directors, and were very capable, from experience, of pointing out

every mode of abuse.

The Court of Directors, on their part, began, though very slowly, to

perceive that the country which was ravaged by this sort of commerce was

their own. These complaints obliged the Directors to a strict

examination into the real sources of the mismanagement of their concerns

in India, and to lay the foundations of a system of restraint on the

exorbitancies of their servants. Accordingly, so early as the year 1765,

they confine them to a trade only in articles of export and import, and

strictly prohibit them from all dealing in objects of internal

consumption. About the same time the Presidency of Calcutta found it

necessary to put a restraint upon themselves, or at least to make show

of a disposition (with which the Directors appear much satisfied) to

keep their own enormous power within bounds.

But whatever might have been the intentions either of the Directors or

the Presidency, both found themselves unequal to the execution of a plan

which went to defeat the projects of almost all the English in

India,--possibly comprehending some who were makers of the regulations.

For, as the complaint of the country or as their own interest

predominated with the Presidency, they were always shifting from one

course to the other; so that it became as impossible for the natives to

know upon what principle to ground any commercial speculation, from the

uncertainty of the law under which they acted, as it was when they were

oppressed by power without any color of law at all: for the Directors,

in a few months after they had given these tokens of approbation to the

above regulations in favor of the country trade, tell the Presidency,

"It is with concern we see in _every page_ of your Consultations

_restrictions, limitations, prohibitions, affecting various articles of

trade_." On their side, the Presidency freely confess that these

monopolies of inland trade "were the foundation of all the bloodsheds,

massacres, and confusions which have happened of late in Bengal."

Pressed in this urgent manner, the Directors came more specifically to

the grievance, and at once annul all the passports with which their

servants traded without duties, holding out means of compensation, of

which it does not appear that any advantage was taken. In order that the

duties which existed should no longer continue to burden the trade

either of the servants or natives, they ordered that a number of

oppressive toll-bars should be taken away, and the whole number reduced

to nine of the most considerable.

When Lord Clive was sent to Bengal to effect a reformation of the many

abuses which prevailed there, he considered monopoly to be so inveterate

and deeply rooted, and the just rewards of the Company's servants to be

so complicated with that injustice to the country, that the latter could

not easily be removed without taking away the former. He adopted,

therefore, a plan for dealing in certain articles, which, as he

conceived, rather ought to be called "a regulated and restricted trade"

than a formal monopoly. By this plan he intended that the profits should

be distributed in an orderly and proportioned manner for the reward of

services, and not seized by each individual according to the measure of

his boldness, dexterity, or influence.

But this scheme of monopoly did not subsist long, at least in that mode

and for those purposes. Three of the grand monopolies, those of opium,

salt, and saltpetre, were successively by the Company taken into their

own hands. The produce of the sale of the two former articles was

applied to the purchase of goods for their investment; the latter was

exported in kind for their sales in Europe. The senior servants had a

certain share of emolument allotted to them from a commission on the

revenues. The junior servants were rigorously confined to salaries, on

which they were unable to subsist according to their rank. They were

strictly ordered to abstain from all dealing in objects of internal

commerce. Those of export and import were left open to young men without

mercantile experience, and wholly unprovided with mercantile capitals,

but abundantly furnished with large trusts of the public money, and with

all the powers of an absolute government. In this situation, a religious

abstinence from all illicit game was prescribed to men at nine thousand

miles' distance from the seat of the supreme authority.

Your Committee is far from meaning to justify, or even to excuse, the

oppressions and cruelties used by many in supplying the deficiencies of

their regular allowances by all manner of extortion; but many smaller

irregularities may admit some alleviation from thence. Nor does your

Committee mean to express any desire of reverting to the mode (contrived

in India, but condemned by the Directors) of rewarding the servants of

an higher class by a regulated monopoly. Their object is to point out

the deficiencies in the system, by which restrictions were laid that

could have little or no effect whilst want and power were suffered to be

united.

But the proceedings of the Directors at that time, though not altogether

judicious, were in many respects honorable to them, and favorable, in

the intention at least, to the country they governed. For, finding their

trading capital employed against themselves and against the natives, and

struggling in vain against abuses which were inseparably connected with

the system of their own preference in trade, in the year 1773 they came

to the manly resolution of setting an example to their servants, and

gave up all use of power and influence in the two grand articles of

their investment, silk and piece-goods. They directed that the articles

should be bought at an equal and public market from the native

merchants; and this order they directed to be published in all the

principal marts of Bengal.

Your Committee are clearly of opinion that no better method of purchase

could be adopted. But it soon appeared that in deep-rooted and

inveterate abuses the wisest principles of reform may be made to operate

so destructively as wholly to discredit the design, and to dishearten

all persons from the prosecution of it. The Presidency, who seemed to

yield with the utmost reluctance to the execution of these orders, soon

made the Directors feel their evil influence upon their own investment;

for they found the silk and cotton cloths rose twenty-five per cent

above their former price, and a further rise of forty per cent was

announced to them.

SILK.

What happened with regard to raw silk is still more remarkable, and

tends still more clearly to illustrate the effects of commercial

servitude during its unchecked existence, and the consequences which may

be made to arise from its sudden reformation. On laying open the trade,

the article of raw silk was instantly enhanced to the Company full

eighty per cent. The contract made for that commodity, wound off in the

Bengal method, which used to sell for less than six rupees, or thirteen

shillings, for two pounds' weight, arose to nine rupees, or near twenty

shillings, and the filature silk was very soon after contracted for at

fourteen.

The Presidency accounted for this rise by observing that the price had

before been _arbitrary_, and that the persons who purveyed for the

Company paid no more than "what was _judged_ sufficient for the

maintenance of the first providers." This fact explains more fully than

the most labored description can do the dreadful effects of the monopoly

on the cultivators. They had the _sufficiency_ of their maintenance

measured out by the judgment of those who were to profit by their labor;

and this measure was not a great deal more, by their own account, than

about two thirds of the value of that labor. In all probability it was

much less, as these dealings rarely passed through intermediate hands

without leaving a considerable profit. These oppressions, it will be

observed, were not confined to the Company's share, which, however,

covered a great part of the trade; but as this was an article permitted

to the servants, the same power of arbitrary valuation must have been

extended over the whole, as the market must be equalized, if any

authority at all is extended over it by those who have an interest in

the restraint. The price was not only raised, but in the manufactures

the quality was debased nearly in an equal proportion. The Directors

conceived, with great reason, that this rise of price and debasement of

quality arose, not from the effect of a free market, but from the

servants having taken that opportunity of throwing upon the market of

their masters the refuse goods of their own private trade at such

exorbitant prices as by mutual connivance they were pleased to settle.

The mischief was greatly aggravated by its happening at a time when the

Company were obliged to pay for their goods with bonds bearing an high

interest.

The perplexed system of the Company's concerns, composed of so many

opposite movements and contradictory principles, appears nowhere in a

more clear light. If trade continued under restraint, their territorial

revenues must suffer by checking the general prosperity of the country:

if they set it free, means were taken to raise the price and debase the

quality of the goods; and this again fell upon the revenues, out of

which the payment for the goods was to arise. The observations of the

Company on that occasion are just and sagacious; and they will not

permit the least doubt concerning the policy of these unnatural trades.

"The amount of our Bengal cargoes, from 1769 to 1773, is 2,901,194_l._

sterling; and if the average increase of price be estimated at

twenty-five per cent only, the amount of such increase is 725,298_l._

sterling. The above circumstances are exceedingly alarming to us; but

what must be our concern, to find by the advices of our President and

Council of 1773, that a further advance of forty per cent on Bengal

goods was expected, and allowed to be the consequence of advertisements

then published, authorizing a free trade in the service? We find the

Duanné revenues are in general farmed for five years, and the aggregate

increase estimated at only 183,170_l._ sterling (on a supposition that

such increase will be realized); yet if the annual investment be sixty

lacs, and the advance of price thirty per cent only, such advance will

_exceed the increase of the revenue by no less than 829,330l.

sterling_."

The indignation which the Directors felt at being reduced to this

distressing situation was expressed to their servants in very strong

terms. They attributed the whole to their practices, and say, "We are

far from being convinced that the competition which tends to raise the

price of goods in Bengal is wholly between public European companies, or

between merchants in general who export to foreign markets: we are

rather of opinion that the sources of this grand evil have been the

extraordinary privileges granted to individuals in our service or under

our license to trade without restriction throughout the provinces of

Bengal, and the encouragement they have had to extend their trade to the

uttermost, even in such goods as were proper for our investment, by

observing the success of those persons who have from time to time _found

means to dispose of their merchandise to our Governor and Council_,

though of so bad a quality as to be sold here with great difficulty,

after having been frequently refused, and put up at the next sale

without price, to the very great discredit and disadvantage of the

Company." In all probability the Directors were not mistaken; for, upon

an inquiry instituted soon after, it was found that Cantû Babû, the

banian or native steward and manager to Mr. Hastings, (late President,)

held two of these contracts in his own name and that of his son for

considerably more than 150,000_l._ This discovery brought on a

prohibition from the Court of Directors of that suspicious and dangerous

dealing in the stewards of persons in high office. The same man held

likewise farms to the amount of 140,000_l._ a year of the landed

revenue, with the same suspicious appearance, contrary to the

regulations made under Mr. Hastings's own administration.

In the mortifying dilemma to which the Directors found themselves

reduced, whereby the ruin of the revenues either by the freedom or the

restraint of trade was evident, they considered the first as most rapid

and urgent, and therefore once more revert to the system of their

ancient preëmption, and destroy that freedom which they had so lately

and with so much solemnity proclaimed, and that before it could be

abused or even enjoyed. They declare, that, "unwilling as we are to

return to _the former coercive system_ of providing an investment, or to

abridge that freedom of commerce which has been so lately established in

Bengal, yet at the same time finding it our indispensable duty to strike

at the _root_ of an evil which has been so severely felt by the Company,

and which can no longer be supported, we hereby direct that all persons

whatever in the Company's service, _or under our protection_, be

absolutely prohibited, by public advertisement, from trading in any of

those articles which compose our investment, directly or indirectly,

except on account of and for the East India Company, until their

investment is completed."

As soon as this order was received in Bengal, it was construed, as

indeed the words seemed directly to warrant, to exclude all natives as

well as servants from the trade, until the Company was supplied. The

Company's preëmption was now authoritatively reëstablished, and some

feeble and ostensible regulations were made to relieve the weavers who

might suffer by it. The Directors imagined that the reëstablishment of

their coercive system would remove the evil which fraud and artifice had

grafted upon one more rational and liberal. But they were mistaken; for

it only varied, if it did so much as vary, the abuse. The servants might

as essentially injure their interest by a direct exercise of their power

as by pretexts drawn from the freedom of the natives,--but with this

fatal difference, that the frauds upon the Company must be of shorter

duration under a scheme of freedom. That state admitted, and indeed led

to, means of discovery and correction; whereas the system of coercion

was likely to be permanent. It carried force further than served the

purposes of those who authorized it: it tended to cover all frauds with

obscurity, and to bury all complaint in despair. The next year,

therefore, that is, in the year 1776, the Company, who complained that

their orders had been extended beyond their intentions, made a third

revolution in the trade of Bengal. It was set free again,--so far, at

least, as regarded the native merchants,--but in so imperfect a manner

as evidently to leave the roots of old abuses in the ground. The Supreme

Court of Judicature about this time (1776) also fulminated a charge

against monopolies, without any exception of those authorized by the

Company: but it does not appear that anything very material was done in

consequence of it.

The trade became nominally free; but the course of business established

in consequence of coercive monopoly was not easily altered. In order to

render more distinct the principles which led to the establishment of a

course and habit of business so very difficult to change as long as

those principles exist, your Committee think it will not be useless here

to enter into the history of the regulations made in the first and

favorite matter of the Company's investment, the trade in _raw silk_,

from the commencement of these regulations to the Company's perhaps

finally abandoning all share in the trade which was their object.

RAW SILK

The trade in _raw silk_ was at all times more popular in England than

really advantageous to the Company. In addition to the old jealousy

which prevailed between the Company and the manufactory interest of

England, they came to labor under no small odium on account of the

distresses of India. The public in England perceived, and felt with a

proper sympathy, the sufferings of the Eastern provinces in all cases in

which they might be attributed to the abuses of power exercised under

the Company's authority. But they were not equally sensible to the evils

which arose from a system of sacrificing the being of that country to

the advantage of this. They entered very readily into the former, but

with regard to the latter were slow and incredulous. It is not,

therefore, extraordinary that the Company should endeavor to ingratiate

themselves with the public by falling in with its prejudices. Thus they

were led to increase the grievance in order to allay the clamor. They

continued still, upon a larger scale, and still more systematically,

that plan of conduct which was the principal, though not the most

blamed, cause of the decay and depopulation of the country committed to

their care.

With that view, and to furnish a cheap supply of materials to the

manufactures of England, they formed a scheme which tended to destroy,

or at least essentially to impair, the whole manufacturing interest of

Bengal. A policy of that sort could not fail of being highly popular,

when the Company submitted itself as an instrument for the improvement

of British manufactures, instead of being their most dangerous rival, as

heretofore they had been always represented.

They accordingly notified to their Presidency in Bengal, in their letter

of the 17th of March, 1769, that "there was no branch of their trade

they more ardently wish to extend than that of raw silk." They

disclaim, however, all desire of employing compulsory measures for that

purpose, but recommended every mode of encouragement, and particularly

by augmented wages, "_in order to induce manufacturers of wrought silk

to quit that branch and take to the winding of raw silk_."

Having thus found means to draw hands from the manufacture, and

confiding in the strength of a capital drawn from the public revenues,

they pursue their ideas from the purchase of their manufacture to the

purchase of the material in its crudest state. "We recommend you to give

an _increased price_, if necessary, _so as to take that trade out of the

hands of other merchants and rival nations_." A double bounty was thus

given against the manufactures, both in the labor and in the materials.

It is very remarkable in what manner their vehement pursuit of this

object led the Directors to a speedy oblivion of those equitable

correctives before interposed by them, in order to prevent the mischiefs

which were apparent in the scheme, if left to itself. They could venture

so little to trust to the bounties given from the revenues a trade which

had a tendency to dry up their source, that, by the time they had

proceeded to the thirty-third paragraph of their letter, they revert to

those very compulsory means which they had disclaimed but three

paragraphs before. To prevent silk-winders from working in their private

houses, where they might work for private traders, and to confine them

to the Company's factories, where they could only be employed for the

Company's benefit, they desire that the newly acquired power of

government should be effectually employed. "Should," say they, "this

practice, through _inattention_, have been suffered to take place again,

it will be proper to put a stop to it, which may _now be more

effectually done by an absolute prohibition, under severe penalties, by

the authority of government_."

This letter contains a perfect plan of policy, both of compulsion and

encouragement, which must in a very considerable degree operate

destructively to the manufactures of Bengal. Its effect must be (so far

as it could operate without being eluded) to change the whole face of

that industrious country, in order to render it a field for the produce

of crude materials subservient to the manufactures of Great Britain. The

manufacturing hands were to be seduced from their looms by high wages,

in order to prepare a raw produce for our market; they were to be locked

up in the factories; and the commodity acquired by these operations was,

in this immature state, carried out of the country, whilst its looms

would be left without any material but the debased refuse of a market

enhanced in its price and scanted in its supply. By the increase of the

price of this and other materials, manufactures formerly the most

flourishing gradually disappeared under the protection of Great Britain,

and were seen to rise again and flourish on the opposite coast of India,

under the dominion of the Mahrattas.

These restraints and encouragements seem to have had the desired effect

in Bengal with regard to the diversion of labor from manufacture to

materials. The trade of raw silk increased rapidly. But the Company very

soon felt, in the increase of price and debasement of quality of the

wrought goods, a loss to themselves which fully counterbalanced all the

advantages to be derived to the nation from the increase of the raw

commodity. The necessary effect on the revenue was also foretold very

early: for their servants in the principal silk-factories declared that

the obstruction to the private trade in silk must in the end prove

detrimental to the revenues, and that the investment clashes with the

collection of these revenues. Whatsoever by bounties or immunities is

encouraged out of a landed revenue has certainly some tendency to lessen

the net amount of that revenue, and to forward a produce which does not

yield to the gross collection, rather than one that does.

The Directors declare themselves unable to understand how this could be.

Perhaps it was not so difficult. But, pressed as they were by the

greatness of the payments which they were compelled to make to

government in England, the cries of Bengal could not be heard among the

contending claims of the General Court, of the Treasury, and of

Spitalfields. The speculation of the Directors was originally fair and

plausible,--so far as the mere encouragement of the commodity extended.

Situated as they were, it was hardly in their power to stop themselves

in the course they had begun. They were obliged to continue their

resolution, at any hazard, increasing the investment. "The state of our

affairs," say they, "requires the utmost extension of your investments.

You are not to forbear sending even those sorts _which are attended with

loss_, in case such should be necessary to supply an investment to as

great an amount as _you can provide from your own resources_; and we

have not the least doubt of your being thereby enabled to increase your

consignments of this valuable branch of national commerce, even to the

utmost of your wishes. But it is our positive order that no part of

such investment be provided with borrowed money which is to be repaid by

_drafts upon our treasury in London_; since the license which has

already been taken in this respect has involved us in difficulties which

we yet know not how we shall surmount."

This very instructive paragraph lays open the true origin of the

internal decay of Bengal. The trade and revenues of that country were

(as the then system must necessarily have been) of secondary

consideration at best. Present supplies were to be obtained, and present

demands in England were to be avoided, at every expense to Bengal.

The spirit of increasing the investment from revenue at any rate, and

the resolution of driving all competitors, Europeans or natives, out of

the market, prevailed at a period still more early, and prevailed not

only in Bengal, but seems, more or less, to have diffused itself through

the whole sphere of the Company's influence. In 1768 they gave to the

Presidency of Madras the following memorable instruction, strongly

declaratory of their general system of policy.

"We shall depend upon your prudence," say they, "to discourage

foreigners; and being intent, as you have been repeatedly acquainted, on

bringing home as great a part of the revenues as possible in your

manufactures, the outbidding them in those parts where they interfere

with you would certainly prove an effectual step for answering that end.

We therefore recommend it to you to offer such increase of price as you

shall deem may be consistently given,--that, by beating them out of the

market, the quantities by you to be provided may be proportionally

enlarged; and if you take this method, it is to be so cautiously

practised as not to enhance the prices in the places immediately under

your control. On this subject we must not omit the approval of your

prohibiting the weavers of Cuddalore from making up any cloth of the

same sortments that are provided for us; and if such prohibition is not

now, it should by all means be in future, _made general, and strictly

maintained_."

This system must have an immediate tendency towards disordering the

trade of India, and must finally end in great detriment to the Company

itself. The effect of the restrictive system on the weaver is evident.

The authority given to the servants to buy at an advanced price did of

necessity furnish means and excuses for every sort of fraud in their

purchases. The instant the servant of a merchant is admitted on his own

judgment to overbid the market, or to send goods to his master which

shall sell at loss, there is no longer any standard upon which his

unfair practices can be estimated, or any effectual means by which they

can be restrained. The hope entertained by the Directors, of confining

this destructive practice of giving an enhanced price to a particular

spot, must ever be found totally delusive. Speculations will be affected

by this artificial price in every quarter in which markets can have the

least communication with each other.

In a very few years the Court of Directors began to feel, even in

Leadenhall Street, _the effects of trading to loss_ upon the revenues,

especially on those of Bengal. In the letter of February, 1774, they

observe, that, "looking back to their accounts for the four preceding

years, on several of the descriptions of silk there has been an

_increasing loss_, instead of any alteration for the better in the last

year's productions. This," they say, "threatens the destruction of that

valuable branch of national commerce." And then they recommend _such

regulations_ (as if regulations in that state of things could be of any

service) as may obtain "a profit in future, instead of so considerable a

loss, which _we can no longer sustain_."

Your Committee thought it necessary to inquire into the losses which had

actually been suffered by this unnatural forced trade, and find the loss

so early as the season of 1776 to be 77,650_l._, that in the year 1777

it arose to 168,205_l._ This was so great that worse could hardly be

apprehended: however, in the season of 1778 it amounted to 255,070_l._

In 1779 it was not so ruinously great, because the whole import was not

so considerable; but it still stood enormously high,--so high as

141,800_l._ In the whole four years it came to 642,725_l._ The

observations of the Directors were found to be fully verified. It is

remarkable that the same article in the China trade produced a

considerable and uniform profit. On this circumstance little observation

is necessary.

During the time of their struggles for enlarging this losing trade,

which they considered as a national object,--what in one point of view

it was, and, if it had not been grossly mismanaged, might have been in

more than one,--in this part it is impossible to refuse to the Directors

a very great share of merit. No degree of thought, of trouble, or of

reasonable expense was spared by them for the improvement of the

commodity. They framed with diligence, and apparently on very good

information, a code of manufacturing regulations for that purpose; and

several persons were sent out, conversant in the Italian method of

preparing and winding silk, aided by proper machines for facilitating

and perfecting the work. This, under proper care, and in course of time,

might have produced a real improvement to Bengal; but in the first

instance it naturally drew the business from native management, and it

caused a revulsion from the trade and manufactures of India which led as

naturally and inevitably to an European monopoly, in some hands or

other, as any of the modes of coercion which were or could be employed.

The evil was present and inherent in the act. The means of letting the

natives into the benefit of the improved system of produce was likely to

be counteracted by the general ill conduct of the Company's concerns

abroad. For a while, at least, it had an effect still worse: for the

Company purchasing the raw cocoon or silk-pod at a fixed rate, the first

producer, who, whilst he could wind at his own house, employed his

family in this labor, and could procure a reasonable livelihood by

buying up the cocoons for the Italian filature, now incurred the

enormous and ruinous loss of fifty per cent. This appears in a letter to

the Presidency, written by Mr. Boughton Rouse, now a member of your

Committee. But for a long time a considerable quantity of that in the

old Bengal mode of winding was bought for the Company from contractors,

and it continues to be so bought to the present time: but the Directors

complain, in their letter of the 12th of May, 1780, that both species,

and particularly the latter, had risen so extravagantly that it was

become more than forty per cent dearer than it had been fifteen years

ago. In that state of price, they condemn their servants, very justly,

for entering into contracts for three years,--and that for several

kinds of silk, of very different goodness, upon averages unfairly

formed, where the commodities averaged at an equal price differed from

twenty to thirty per cent on the sale. Soon after, they formed a regular

scale of fixed prices, above which they found they could not trade

without loss.

Whilst they were continuing these methods to secure themselves against

future losses, the Bengal ships which arrived in that year announced

nothing but their continuance. Some articles by the high price, and

others from their ill quality, were such "as never could answer to be

sent to Europe at any price." The Directors renew their prohibition of

making fresh contracts, the present being generally to expire in the

year 1781. But this trade, whose fundamental policy might have admitted

of a doubt, as applied to Bengal, (whatever it might have been with

regard to England,) was now itself expiring in the hands of the Company,

so that they were obliged to apply to government for power to enlarge

their capacity of receiving bills upon Europe. The purchase by these

bills they entirely divert from raw silk, and order to be laid out

wholly in piece-goods.

Thus, having found by experience that this trade, whilst carried on upon

the old principles, of whatever advantage it might have been to the

British manufacturers, or to the individuals who were concerned in it in

Bengal, had proved highly detrimental to the Company, the Directors

resolved to expunge the raw silk from their investment. They gave up the

whole to private traders, on condition of paying the freight, charges,

and duties,--permitting them to send it to Europe in the Company's ships

upon their own account.

The whole of this history will serve to demonstrate that all attempts,

which in their original system or in their necessary consequences tend

to the distress of India, must, and in a very short time will, make

themselves felt even by those in whose favor such attempts have been

made. India may possibly in some future time bear and support itself

under an extraction of measure [treasure?] or of goods; but much care

ought to be taken that the influx of wealth shall be greater in quantity

and prior in time to the waste.

On abandoning the trade in silk to private hands, the Directors issued

some prohibitions to prevent monopoly, and they gave some directions

about the improvement of the trade. The prohibitions were proper, and

the directions prudent; but it is much to be feared, that, whilst all

the means, instruments, and powers remain, by which monopolies were

made, and through which abuses formerly prevailed, all verbal orders

will be fruitless.

This branch of trade, being so long principally managed by the Company's

servants for the Company and under its authority, cannot be easily taken

out of their hands and pass to the natives, especially when it is to be

carried on without the control naturally inherent in all participation.

It is not difficult to conceive how this forced preference of traffic in

a raw commodity must have injured the manufactures, while it was the

policy of the Company to continue the trade on their own account. The

servants, so far from deviating from their course, since they have taken

the trade into their own management, have gone much further into it. The

proportion of raw silk in the investment is to be augmented. The

proportion of the whole cargoes for the year 1783, divided into sixteen

parts, is ten of raw silk, and six only of manufactured goods. Such is

the proportion of this losing article in the scheme for the investment

of private fortunes.

In the reformed scheme of sending the investment on account of the

Company, to be paid in bills upon Europe, no mention is made of any

change of these proportions. Indeed, some limits are attempted on the

article of silk, with regard to its price; and it is not improbable that

the price to the master and the servant will be very different: but they

cannot make profitable purchases of this article without strongly

condemning all the former purchases of the Board of Trade.

CLOTHS, OR PIECE-GOODS.

The general system above stated, relative to the silk trade, must

materially have affected the manufactures of Bengal, merely as it was a

system of preference. It does by no means satisfactorily appear to your

Committee that the freedom held out by the Company's various orders has

been ever fully enjoyed, or that the grievances of the native merchants

and manufacturers have been redressed; for we find, on good authority,

that, at that very period at which it might be supposed that these

orders had their operation, the oppressions were in full vigor. They

appear to have fallen heaviest on the city of Dacca, formerly the great

staple for the finest goods in India,--a place once full of opulent

merchants and dealers of all descriptions.

The city and district of Dacca, before the prevalence of the East India

Company's influence and authority, manufactured annually to about three

hundred thousand pounds' value in cloths. In the year 1776 it had

fallen to about two hundred thousand, or two thirds of its former

produce. Of this the Company's demand amounted only to a fourth part,

that is, about fifty thousand pounds yearly. This was at that time

provided by agents for the Company, under the inspection of their

commercial servants. On pretence of securing an advantage for this

fourth part for their masters, they exerted a most violent and arbitrary

power over the whole. It was asserted, that they fixed the Company's

mark to such goods as they thought fit, (to all goods, as stated in one

complaint,) and disposed of them as they thought proper, excluding not

only all the native dealers, but the Dutch Company, and private English

merchants,--that they made advances to the weavers often beyond their

known ability to repay in goods within the year, and by this means,

having got them in debt, held them in perpetual servitude. Their

inability to keep accounts left them at the discretion of the agents of

the supreme power to make their balances what they pleased, and they

recovered them, not by legal process, but by seizure of their goods and

arbitrary imprisonment of their persons. One and the same dealer made

the advance, valued the return, stated the account, passed the judgment,

and executed the process.

Mr. Rouse, Chief of the Dacca Province, who struggled against those

evils, says, that in the year 1773 there were no balances due, as the

trade was then carried on by the native brokers. In less than three

years these balances amounted to an immense sum,--a sum lost to the

Company, but existing in full force for every purpose of oppression. In

the amount of these balances almost every weaver in the country bore a

part, and consequently they were almost all caught in this snare. "They

are in general," says Mr. Rouse, in a letter to General Clavering,

delivered to your Committee, "a timid, helpless people; many of them

poor to the utmost degree of wretchedness; incapable of keeping

accounts; industrious as it were by instinct; unable to defend

themselves, if oppressed; and satisfied, if with continual labor they

derive from the fair dealing and humanity of their employer a moderate

subsistence for their families."

Such were the people who stood accused by the Company's agents as

_pretending_ grievances, in order to be excused the payment of their

balances. As to the commercial state of the province in general, Mr.

Rouse represents it "to be for those two years a perpetual scene of

complaint and disputation;--the Company's agents professing to pay

higher rates to weavers, whilst the Leadenhall sales showed an heavy

loss to the Company; the weavers have even travelled in multitudes to

prefer their complaints at the Presidency; the amount of the investment

comparatively small, with balances comparatively large, and, as I

understand, generally contested by the weavers; the native merchants,

called _delâls_, removed from their influence, as prejudicial to the

Company's concerns; and European merchants complaining against undue

influence of the Company's commercial agents, in preventing the free

purchase even of those goods which the Company never takes."

The spirit of those agents will be fully comprehended from a state of

the proceedings before Mr. Rouse and Council, on the complaint of a Mr.

Cree, an English free merchant at Dacca, who had been twice treated in

the same injurious manner by the agents of Mr. Hurst, the Commercial

Chief at that place. On his complaint to the board of the seizure of the

goods, and imprisonment of his agents, Mr. Hurst was called upon for an

explanation. In return he informed them that he had sent to one of the

villages to inquire concerning the matter of fact alleged. The impartial

person sent to make this inquiry was the very man accused of the

oppressions into which he was sent to examine. The answer of Mr. Hurst

is in an high and determined tone. He does not deny that there are some

instances of abuse of power. "But I ask," says he, "what _authority_ can

guard against the conduct of individuals? but that a _single_ instance

cannot be brought of a general depravity." Your Committee have reason to

believe these coercive measures to have been very general, though

employed according to the degree of resistance opposed to the monopoly;

for we find at one time the whole trade of the Dutch involved in the

general servitude. But it appears very extraordinary that nothing but

the actual proof of a _general_ abuse could affect a practice the very

principle of which tends to make the coercion as general as the trade.

Mr. Hurst's reflection concerning the abuse of _authority_ is just, but

in this case it is altogether inapplicable; because the complaint was

not of the abuse, but of the use of authority in matters of trade, which

ought to have been free. He throws out a variety of invidious

reflections against the Council, as if they wanted zeal for the

Company's service; his justification of his practices, and his

declaration of his resolution to persevere in them, are firm and

determined,--asserting the right and policy of such restraints, and

laying down a rule for his conduct at the factory, which, he says, will

give no cause of just complaint to private traders. He adds, "I have no

doubt but that they have hitherto provided investments, and it cannot

turn to my interest to preclude them _now_, though I must ever think it

my duty to combat the private views of individuals who _set themselves

up as competitors_ under that very body under whose license and

indulgence only they can derive their privilege of trade: all I contend

for is the _same influence_ my employers have ever had." He ends by

declining any reply to any of their future references of this nature.

The whole of this extraordinary letter is inserted in the Appendix, No.

51,--and Mr. Rouse's minute of observations upon it in Appendix, No. 52,

fully refuting the few pretexts alleged in that extraordinary

performance in support of the trade by influence and authority. Mr.

Hollond, one of the Council, joined Mr. Rouse in opinion that a letter

to the purport of that minute should be written; but they were overruled

by Messrs. Purling, Hogarth, and Shakespeare, who passed a resolution to

defer sending any reply to Mr. Hurst: and none was ever sent. Thus they

gave countenance to the doctrine contained in that letter, as well as to

the mischievous practices which must inevitably arise from the exercise

of such power. Some temporary and partial relief was given by the

vigorous exertions of Mr. Rouse; but he shortly after removing from that

government, all complaints were dropped.

It is remarkable, that, during the long and warm contest between the

Company's agents and the dealers of Dacca, the Board of Trade seem to

have taken a decided part against the latter. They allow some sort of

justice in the complaints of the manufacturers with regard to low

valuation, and other particulars; but they say, that, "although" (during

the time of preëmption) "it appears that the weavers _were not allowed

the same liberty of selling to individuals they before enjoyed_, our

opinion on the whole is, that these complaints have originated upon the

premeditated designs of the delâls [factors or brokers] _to thwart the

new mode_ of carrying on the Company's business, _and to render

themselves necessary_." They say, in another place, that there is no

ground for the dissatisfactions and difficulties of the weavers: "that

they are owing to the delâls, _whose aim it is to be employed_."

This desire of being employed, and of rendering themselves necessary, in

men whose only business it is to be employed in trade, is considered by

the gentlemen of the board as no trivial offence; and accordingly they

declare, "they have established it as _an invariable rule_, that,

_whatever deficiency_ there might be in the Dacca investment, no

purchase of the manufactures of _that quarter_ shall be made for account

of the Company from private merchants. We have passed this resolution,

which we deem of importance, from a persuasion that private merchants

are often _induced_ to make advances for Dacca goods, not by the

ordinary chance of sale, but merely from an expectation of disposing of

them at an enhanced price to the Company, against _whom a rivalship_ is

by this manner encouraged"; and they say, "that they intend to observe

the _same_ rule with respect to the investment of other of the factories

from whence similar complaints may come."

This positive rule is opposed to the positive directions of the Company

to employ those obnoxious persons by preference. How far this violent

use of authority for the purpose of destroying rivalship has succeeded

in reducing the price of goods to the Company has been made manifest by

the facts before stated in their place.

The recriminatory charges of the Company's agents on the native

merchants have made very little impression on your Committee. We have

nothing in favor of them, but the assertion of a party powerful and

interested. In such cases of mutual assertion and denial, your Committee

are led irresistibly to attach abuse to power, and to presume that

suffering and hardship are more likely to attend on weakness than that

any combination of unprotected individuals is of force to prevail over

influence, power, wealth, and authority. The complaints of the native

merchants ought not to have been treated in any of those modes in which

they were then treated. And when men are in the situation of

complainants against unbounded power, their abandoning their suit is far

from a full and clear proof of their complaints being groundless. It is

not because redress has been rendered impracticable that oppression does

not exist; nor is the despair of sufferers any alleviation of their

afflictions. A review of some of the most remarkable of the complaints

made by the native merchants in that province is so essential for laying

open the true spirit of the commercial administration, and the real

condition of those concerned in trade there, that your Committee

observing the records on this subject and at this period full of them,

they could not think themselves justifiable in not stating them to the

House.

Your Committee have found many heavy charges of oppression against Mr.

Barwell, whilst Factory Chief at Dacca; which oppressions are stated to

have continued, and even to have been aggravated, on complaint at

Calcutta. These complaints appear in several memorials presented to the

Supreme Council of Calcutta, of which Mr. Barwell was a member. They

appeared yet more fully and more strongly in a bill in Chancery filed in

the Supreme Court, which was afterwards recorded before the

Governor-General and Council, and transmitted to the Court of Directors.

Your Committee, struck with the magnitude and importance of these

charges, and finding that with regard to those before the Council no

regular investigation has ever taken place, and finding also that Mr.

Barwell had asserted in a Minute of Council that he had given a full

answer to the allegations in that bill, ordered a copy of the answer to

be laid before your Committee, that they might be enabled to state to

the House how far it appeared to them to be full, how far the charges

were denied as to the fact, or, where the facts might be admitted, what

justification was set up. It appeared necessary, in order to determine

on the true situation of the trade and the merchants of that great city

and district.

The Secretary to the Court of Directors has informed your Committee that

no copy of the answer is to be found in the India House; nor has your

Committee been able to discover that any has been transmitted. On this

failure, your Committee ordered an application to be made to Mr. Barwell

for a copy of his answer to the bill, and any other information with

which he might be furnished with regard to that subject.

Mr. Barwell, after reciting the above letter, returned in answer what

follows.

"Whether the records of the Supreme Court of Judicature are lodged at

the India House I am ignorant, but on those records my answer is

certainly to be found. At this distance of time I am sorry I cannot from

memory recover the circumstances of this affair; but this I know, that

the bill did receive a complete answer, and the people the fullest

satisfaction: nor is it necessary for me to remark, that [in?] the state

of parties at that time in Bengal, could party have brought forward any

particle of that bill supported by any verified fact, the principle that

introduced it in the proceedings of the Governor-General and Council

would likewise have given the verification of that one circumstance,

whatever that might have been. As I generally attend in my place in the

House, I shall with pleasure answer any invitation of the gentlemen of

the Committee to attend their investigations up stairs with every

information and light in my power to give them.

"St. James's Square, 15th April, 1783."

Your Committee considered, that, with regard to the matter charged in

the several petitions to the board, no sort of specific answer had been

given at the time and place where they were made, and when and where the

parties might be examined and confronted. It was considered also, that

the bill had been transmitted, with other papers relating to the same

matter, to the Court of Directors, with the knowledge and consent of Mr.

Barwell,--and that he states that his answer had been filed, and no

proceedings had upon it for eighteen months. In that situation it was

thought something extraordinary that no care was taken by him to

transmit so essential a paper as his answer, and that he had no copy of

it in his hands.

Your Committee, in this difficulty, thought themselves obliged to

decline any verbal explanation from the person who is defendant in the

suit, relative to matters which on the part of the complainant appear

upon record, and to leave the whole matter, as it is charged, to the

judgment of the House to determine how far it may be worthy of a further

inquiry, or how far they may admit such allegations as your Committee

could not think themselves justified in receiving. To this effect your

Committee ordered a letter to be written Mr. Barwell; from whom they

received the following answer.

"Sir,--In consequence of your letter of the 17th, I must request the

favor of you to inform the Select Committee that I expect from their

justice, on any matter of public record in which I am personally to be

brought forward to the notice of the House, that they will at the same

time point out to the House what part of such matter has been verified,

and what parts have not nor ever were attempted to be verified, though

introduced in debate and entered on the records of the Governor-General

and Council of Bengal. I am anxious the information should be complete,

or the House will not be competent to judge; and if it is complete, it

will preclude all explanation as unnecessary.

"I am, Sir,

"Your most obedient humble servant,

"RICHARD BARWELL.

"St. James's Square, 22nd April, 1783.

"P.S. As I am this moment returned from the country, I had it not in my

power to be earlier in acknowledging your letter of the 17th."

Your Committee applied to Mr. Barwell to communicate any papers which

might tend to the elucidation of matters before them in which he was

concerned. This he has declined to do. Your Committee conceive that

under the orders of the House they are by no means obliged to make a

complete state of all the evidence which may tend to criminate or

exculpate every person whose transactions they may find it expedient to

report: this, if not specially ordered, has not hitherto been, as they

apprehend, the usage of any committee of this House. It is not for your

Committee, but for the discretion of the party, to call for, and for the

wisdom of the House to institute, such proceedings as may tend finally

to condemn or acquit. The Reports of your Committee are no charges,

though they may possibly furnish _matter_ for charge; and no

representations or observations of theirs can either clear or convict on

any proceeding which may hereafter be grounded on the facts which they

produce to the House. Their opinions are not of a judicial nature. Your

Committee has taken abundant care that every important fact in their

Report should be attended with the authority for it, either in the

course of their reflections or in the Appendix: to report everything

upon every subject before them which is to be found on the records of

the Company would be to transcribe, and in the event to print, almost

the whole of those voluminous papers. The matter which appears before

them is in a summary manner this.

The Dacca merchants begin by complaining that in November, 1773, Mr.

Richard Barwell, then Chief of Dacca, had deprived them of their

employment and means of subsistence; that he had extorted from them

44,224 Arcot rupees (4,731_l._) by the terror of his threats, by long

imprisonment, and cruel confinement in the stocks; that afterwards they

were confined in a small room near the factory-gate, under a guard of

sepoys; that their food was stopped, and they remained starving a whole

day; that they were not permitted to take their food till next day at

noon, and were again brought back to the same confinement, in which they

were continued for six days, and were not set at liberty until they had

given Mr. Barwell's banian a certificate for forty thousand rupees; that

in July, 1774, when Mr. Barwell had left Dacca, they went to Calcutta to

seek justice; that Mr. Barwell confined them in his house at Calcutta,

and sent them back under a guard of peons to Dacca; that in December,

1774, on the arrival of the gentlemen from Europe, they returned to

Calcutta, and preferred their complaint to the Supreme Court of

Judicature.

The bill in Chancery filed against Richard Barwell, John Shakespeare,

and others, contains a minute specification of the various acts of

personal cruelty said to be practised by Mr. Barwell's orders, to extort

money from these people. Among other acts of a similar nature he is

charged with having ordered the appraiser of the Company's cloths, who

was an old man, and who asserts that he had faithfully served the

Company above sixteen years without the least censure on his conduct, to

be severely flogged without reason.

In the _manner_ of confining the delâls, with ten of their servants, it

is charged on him, that, "when he first ordered them to be put into the

stocks, it was at a time when the weather was exceedingly bad and the

rain very heavy, without allowing them the least covering for their

heads or any part of their body, or anything to raise them from the wet

ground; in which condition they were continued for many hours, until the

said Richard Barwell thought proper to remove them into a far worse

state, if possible, as if studying to exercise the most cruel acts of

barbarity on them, &c.; and that during their imprisonment they were

frequently carried to and tortured in the stocks in the middle of the

day, when the scorching heat of the sun was insupportable,

notwithstanding which they were denied the least covering." These men

assert that they had served the Company without blame for thirty

years,--a period commencing long before the power of the Company in

India.

It was no slight aggravation of this severity, that the objects were not

young, nor of the lowest of the people, who might, by the vigor of their

constitutions, or by the habits of hardship, be enabled to bear up

against treatment so full of rigor. They were aged persons; they were

men of a reputable profession.

The account given by these merchants of their first journey to Calcutta,

in July, 1774, is circumstantial and remarkable. They say, "that, on

their arrival, _to their astonishment, they soon learned that the

Governor, who had formerly been violently enraged against the said

Richard Barwell for different improprieties in his conduct, was now

reconciled to him; and that ever since there was a certainty of his

Majesty's appointments taking place in India, from being the most

inveterate enemies they were now become the most intimate friends; and

that this account soon taught them to believe they were not any nearer

justice from their journey to Calcutta than they had been before at

Dacca_."

When this bill of complaint was, in 1776, laid before the Council, to be

transmitted to the Court of Directors, Mr. Barwell complained of the

introduction of such a paper, and asserted, _that he had answered to

every particular of it on oath about eighteen months, and that during

this long period no attempt had been made to controvert, refute, or even

to reply to it_.

He did not, however, think it proper to enter his answer on the records

along with the bill of whose introduction he complained.

On the declarations made by Mr. Barwell in his minute (September, 1776)

your Committee observe, that, considering him only as an individual

under prosecution in a court of justice, it might be sufficient for him

to exhibit his defence in the court where he was accused; but that, as a

member of government, specifically charged before that very government

with abusing the powers of his office in a very extraordinary manner,

and for purposes (as they allege) highly corrupt and criminal, it

appears to your Committee hardly sufficient to say that he had answered

elsewhere. The matter was to go before the Court of Directors, to whom

the question of his conduct in that situation, a situation of the

highest power and trust, was as much at least a question of state as a

matter of redress to be solely left to the discretion, capacity, or

perseverance of individuals. Mr. Barwell might possibly be generous

enough to take no advantage of his eminent situation; but these

unfortunate people would rather look to his power than his disposition.

In general, a man so circumstanced and so charged (though we do not know

this to be the case with Mr. Barwell) might easily contrive by legal

advantages to escape. The plaintiffs being at a great distance from the

seat of government, and possibly affected by fear or fatigue, or seeing

the impossibility of sustaining with the ruins of fortunes never perhaps

very opulent a suit against wealth, power, and influence, a compromise

might even take place, in which circumstances might make the

complainants gladly acquiesce. But the public injury is not in the least

repaired by the acquiescence of individuals, as it touched the honor of

the very highest parts of government. In the opinion of your Committee

some means ought to have been taken to bring the bill to a discussion on

the merits; or supposing that such decree could not be obtained by

reason of any failure of proceeding on the part of the plaintiffs, that

some process official or juridical ought to have been instituted against

them which might prove them guilty of slander and defamation in as

authentic a manner as they had made their charge, before the Council as

well as the Court.

By the determination of Mr. Hurst, and the resolutions of the Board of

Trade, it is much to be apprehended that the native mercantile interest

must be exceedingly reduced. The above-mentioned resolutions of the

Board of Trade, if executed in their rigor, must almost inevitably

accomplish its ruin. The subsequent transactions are covered with an

obscurity which your Committee have not been able to dispel. All which

they can collect, but that by no means distinctly, is, that, as those

who trade for the Company in the articles of investment may also trade

for themselves in the same articles, the old opportunities of

confounding the capacities must remain, and all the oppressions by which

this confusion has been attended. The Company's investments, as the

General Letter from Bengal of the 20th of November, 1775, par. 28,

states the matter, "are never at a stand; advances are made and goods

are received all the year round." Balances, the grand instrument of

oppression, naturally accumulate on poor manufacturers who are intrusted

with money. Where there is not a vigorous rivalship, not only tolerated,

but encouraged, it is impossible ever to redeem the manufacturers from

the servitude induced by those unpaid balances.

No such rivalship does exist: the policy practised and avowed is

directly against it. The reason assigned in the Board of Trade's letter

of the 28th of November, 1778, for its making their advances early in

the season is, to prevent the foreign merchants and private traders

_interfering_ with the purchase of their (the Company's) assortments.

"They also refer to the means taken to prevent this interference in

their letter of 26th January, 1779." It is impossible that the small

part of the trade should not fall into the hands of those who, with the

name and authority of the governing persons, have such extensive

contracts in their hands. It appears in evidence that natives can hardly

trade to the best advantage, (your Committee doubt whether they can

trade to any advantage at all,) if not joined with or countenanced by

British subjects. The Directors were in 1775 so strongly impressed with

this notion, and conceived the native merchants to have been even then

reduced to so low a state, that, notwithstanding the Company's earnest

desire of giving them a preference, they "doubt whether there are at

this time in Bengal native merchants possessed of property adequate to

such undertaking, or of credit and responsibility sufficient to make it

safe and prudent to trust them with such sums as might be necessary to

enable them to fulfil their engagements with the Company."

The effect which so long continued a monopoly, followed by a preëmption,

and then by partial preferences supported by power, must necessarily

have in weakening the mercantile capital, and disabling the merchants

from all undertakings of magnitude, is but too visible. However, a

witness of understanding and credit does not believe the capitals of the

natives to be yet so reduced as to disable them from partaking in the

trade, if they were otherwise able to put themselves on an equal footing

with Europeans.

The difficulties at the outset will, however, be considerable. For the

long continuance of abuse has in some measure conformed the whole trade

of the country to its false principle. To make a sudden change,

therefore, might destroy the few advantages which attend any trade,

without securing those which must flow from one established upon sound

mercantile principles, whenever such a trade can be established. The

fact is, that the forcible direction which the trade of India has had

towards Europe, to the neglect, or rather to the total abandoning, of

the Asiatic, has of itself tended to carry even the internal business

from the native merchant. The revival of trade in the native hands is of

absolute necessity; but your Committee is of opinion that it will

rather be the effect of a regular progressive course of endeavors for

that purpose than of any one regulation, however wisely conceived.

After this examination into the condition of the trade and traders in

the principal articles provided for the investment to Europe, your

Committee proceeded to take into consideration those articles the

produce of which, after sale in Bengal, is to form a part of the fund

for the purchase of other articles of investment, or to make a part of

it in kind. These are, 1st, Opium,--2ndly, Saltpetre,--and, 3rdly, Salt.

These are all monopolized.

OPIUM.

The first of the internal authorized monopolies is that of opium. This

drug, extracted from a species of the poppy, is of extensive consumption

in most of the Eastern markets. The best is produced in the province of

Bahar: in Bengal it is of an inferior sort, though of late it has been

improved. This monopoly is to be traced to the very origin of our

influence in Bengal. It is stated to have begun at Patna so early as the

year 1761, but it received no considerable degree of strength or

consistence until the year 1765, when the acquisition of the Duanné

opened a wide field for all projects of this nature. It was then adopted

and owned as a resource for persons in office,--was managed chiefly by

the civil servants of the Patna factory, and for their own benefit. The

policy was justified on the usual principles on which monopolies are

supported, and on some peculiar to the commodity, to the nature of the

trade, and to the state of the country: the security against

adulteration; the prevention of the excessive home consumption of a

pernicious drug; the stopping an excessive competition, which by an

over-proportioned supply would at length destroy the market abroad; the

inability of the cultivator to proceed in an expensive and precarious

culture without a large advance of capital; and, lastly, the incapacity

of private merchants to supply that capital on the feeble security of

wretched farmers.

These were the principal topics on which the monopoly was supported. The

last topic leads to a serious consideration on the state of the country;

for, in pushing it, the gentlemen argued, that, in case such private

merchants should advance the necessary capital, the lower cultivators

"_would get money in abundance_." Admitting this fact, it seems to be a

part of the policy of this monopoly to prevent the cultivator from

obtaining the natural fruits of his labor. Dealing with a private

merchant, he could not get _money in abundance_, unless his commodity

could produce an _abundant_ profit. Further reasons, relative to the

peace and good order of the province, were assigned for thus preventing

the course of trade from the equitable distribution of the advantages of

the produce, in which the first, the poorest, and the most laborious

producer ought to have his first share. The cultivators, they add, would

squander part of the money, and not be able to complete their

engagements to the full; lawsuits, and even battles, would ensue between

the factors, contending for a deficient produce; and the farmers would

discourage the culture of an object which brought so much disturbance

into their districts. This competition, the operation of which they

endeavor to prevent, is the natural corrective of the abuse, and the

best remedy which could be applied to the disorder, even supposing its

probable existence.

Upon whatever reasons or pretences the monopoly of opium was supported,

the real motive appears to be the profit of those who were in hopes to

be concerned in it. As these profits promised to be very considerable,

at length it engaged the attention of the Company; and after many

discussions, and various plans of application, it was at length taken

for their benefit, and the produce of the sale ordered to be employed in

the purchase of goods for their investment.

In the year 1773 it had been taken out of the hands of the Council of

Patna, and leased to two of the natives,--but for a year only. The

contractors were to supply a certain quantity of opium at a given price.

Half the value was to be paid to those contractors in advance, and the

other half on the delivery.

The proceedings on this contract demonstrated the futility of all the

principles on which the monopoly was founded. The Council, as a part of

their plan, were obliged, by heavy duties, and by a limitation of the

right of emption of foreign opium to the contractors for the home

produce, to check the influx of that commodity from the territories of

the Nabob of Oude and the Rajah of Benares. In these countries no

monopoly existed; and yet there the commodity was of such a quality and

so abundant as to bear the duty, and even with the duty in some degree

to rival the monopolist even in his own market. There was no complaint

in those countries of want of advances to cultivators, or of lawsuits

and tumults among the factors; nor was there any appearance of the

multitude of other evils which had been so much dreaded from the

vivacity of competition.

On the other hand, several of the precautions inserted in this contract,

and repeated in all the subsequent, strongly indicated the evils against

which it is extremely difficult, if not impossible, to guard a monopoly

of this nature and in that country. For in the first contract entered

into with the two natives it was strictly forbidden to compel the

tenants to the cultivation of this drug. Indeed, very shocking rumors

had gone abroad, and they were aggravated by an opinion universally

prevalent, that, even in the season immediately following that dreadful

famine which swept off one third of the inhabitants of Bengal, several

of the poorer farmers were compelled to plough up the fields they had

sown with grain in order to plant them with poppies for the benefit of

the engrossers of opium. This opinion grew into a strong presumption,

when it was seen that in the next year the produce of opium (contrary to

what might be naturally expected in a year following such a dearth) was

nearly doubled. It is true, that, when the quantity of land necessary

for the production of the largest quantity of opium is considered, it is

not just to attribute that famine to these practices, nor to any that

were or could be used; yet, where such practices did prevail, they must

have been very oppressive to individuals, extremely insulting to the

feelings of the people, and must tend to bring great and deserved

discredit on the British government. The English are a people who

appear in India as a conquering nation; all dealing with them is

therefore, more or less, a dealing with power. It is such when they

trade on a private account; and it is much more so in any authorized

monopoly, where the hand of government, which ought never to appear but

to protect, is felt as the instrument in every act of oppression. Abuses

must exist in a trade and a revenue so constituted, and there is no

effectual cure for them but to entirely cut off their cause.

Things continued in this train, until the great revolution in the

Company's government was wrought by the Regulating Act of the thirteenth

of the king. In 1775 the new Council-General appointed by the act took

this troublesome business again into consideration. General Clavering,

Colonel Monson, and Mr. Francis expressed such strong doubts of the

propriety of this and of all other monopolies, that the Directors, in

their letter of the year following, left the Council at liberty to throw

the trade open, under a duty, if they should find it practicable. But

General Clavering, who most severely censured monopoly in general,

thought that this monopoly ought to be retained,--but for a reason which

shows his opinion of the wretched state of the country: for he supposed

it impossible, with the power and influence which must attend British

subjects in all their transactions, that monopoly could be avoided; and

he preferred an avowed monopoly, which brought benefit to government, to

a virtual engrossing, attended with profit only to individuals. But in

this opinion he did not seem to be joined by Mr. Francis, who thought

the suppression of this and of all monopolies to be practicable, and

strongly recommended their abolition in a plan sent to the Court of

Directors the year following.[6]

The Council, however, submitting to the opinion of this necessity,

endeavored to render that dubious engagement as beneficial as possible

to the Company. They began by putting up the contract to the highest

bidder. The proposals were to be sealed. When the seals came to be

opened, a very extraordinary scene appeared. Every step in this business

develops more and more the effect of this junction of public monopoly

and private influence. Four English and eight natives were candidates

for the contract; three of the English far overbid the eight natives.

They who consider that the natives, from their superior dexterity, from

their knowledge of the country and of business, and from their extreme

industry, vigilance, and parsimony, are generally an over-match for

Europeans, and indeed are, and must ultimately be, employed by them in

all transactions whatsoever, will find it very extraordinary that they

did not by the best offers secure this dealing to themselves. It can be

attributed to this cause, and this only,--that they were conscious,

that, without power and influence to subdue the cultivators of the land

to their own purposes, they never could afford to engage on the lowest

possible terms. Those whose power entered into the calculation of their

profits could offer, as they did offer, terms without comparison better;

and therefore one of the English bidders, without partiality, secured

the preference.

The contract to this first bidder, Mr. Griffiths, was prolonged from

year to year; and as during that time frequent complaints were made by

him to the Council Board, on the principle that the years answered very

differently, and that the business of one year ran into the other,

reasons or excuses were furnished for giving the next contract to Mr.

Mackenzie for three years. This third contract was not put up to

auction, as the second had been, and as this ought to have been. The

terms were, indeed, something better for the Company; and the engagement

was subject to qualifications, which, though they did not remove the

objection to the breach of the Company's orders, prevented the hands of

the Directors from being tied up. A proviso was inserted in the

contract, that it should not be anyways binding, if the Company by

orders from home should alter the existing practice with regard to such

dealing.

Whilst these things were going on, the evils which this monopoly was in

show and pretence formed to prevent still existed, and those which were

naturally to be expected from a monopoly existed too. Complaints were

made of the bad quality of the opium; trials were made, and on those

trials the opium was found faulty. An office of inspection at Calcutta,

to ascertain its goodness, was established, and directions given to the

Provincial Councils at the places of growth to certify the quantity and

quality of the commodity transmitted to the Presidency.

In 1776, notwithstanding an engagement in the contract strictly

prohibiting all compulsory culture of the poppy, information was given

to a member of the Council-General, that fields green with rice had been

forcibly ploughed up to make way for that plant,--and that this was done

in the presence of several English gentlemen, who beheld the spectacle

with a just and natural indignation. The board, struck with this

representation, ordered the Council of Patna to make an inquiry into the

fact; but your Committee can find no return whatsoever to this order.

The complaints were not solely on the part of the cultivators against

the contractor. The contractor for opium made loud complaints against

the inferior collectors of the landed revenue, stating their undue and

vexatious exactions from the cultivators of opium,--their throwing these

unfortunate people into prison upon frivolous pretences, by which the

tenants were ruined, and the contractor's advances lost. He stated,

that, if the contractor should interfere in favor of the cultivator,

then a deficiency would be caused to appear in the landed revenues, and

that deficiency would be charged on his interposition; he desired,

therefore, that the cultivators of opium should be taken out of the

general system of the landed revenue, and put under "his _protection_."

Here the effect naturally to be expected from the clashing of

inconsistent revenues appeared in its full light, as well as the state

of the unfortunate peasants of Bengal between such rival protectors,

where the ploughman, flying from the tax-gatherer, is obliged to take

refuge under the wings of the monopolist. No dispute arises amongst the

English subjects which does not divulge the misery of the natives; when

the former are in harmony, all is well with the latter.

This monopoly continuing and gathering strength through a succession of

contractors, and being probably a most lucrative dealing, it grew to be

every day a greater object of competition. The Council of Patna

endeavored to recover the contract, or at least the agency, by the most

inviting terms; and in this eager state of mutual complaint and

competition between private men and public bodies things continued until

the arrival in Bengal of Mr. Stephen Sulivan, son of Mr. Sulivan,

Chairman of the East India Company, which soon put an end to all strife

and emulation.

To form a clear judgment on the decisive step taken at this period, it

is proper to keep in view the opinion of the Court of Directors

concerning monopolies, against which they had uniformly declared in the

most precise terms. They never submitted to them, but as to a present

necessity; it was therefore not necessary for them to express any

particular approbation of a clause in Mr. Mackenzie's contract which was

made in favor of their own liberty. Every motive led them to preserve

it. On the security of that clause they could alone have suffered to

pass over in silence (for they never approved) the grant of the contract

which contained it for three years. It must also be remembered that they

had from the beginning positively directed that the contract should be

put up to public auction; and this not having been done in Mr.

Mackenzie's case, they severely reprimanded the Governor-General and

Council in their letter of the 23rd December, 1778.

The Court of Directors were perfectly right in showing themselves

tenacious of this regulation,--not so much to secure the best

practicable revenue from their monopoly whilst it existed, but for a

much more essential reason, that is, from the corrective which this

method administered to that monopoly itself: it prevented the British

contractor from becoming doubly terrible to the natives, when they

should see that his contract was in effect _a grant_, and therefore

indicated particular favor and private influence with the ruling members

of an absolute government.

On the expiration of Mr. Mackenzie's term, and but a few months after

Mr. Sulivan's arrival, the Governor-General, as if the contract was a

matter of patronage, and not of dealing, pitched upon Mr. Sulivan as the

most proper person for the management of this critical concern. Mr.

Sulivan, though a perfect stranger to Bengal, and to that sort and to

all sorts of local commerce, made no difficulty of accepting it. The

Governor-General was so fearful that his true motives in this business

should be mistaken, or that the smallest suspicion should arise of his

attending to the Company's orders, that, far from putting up the

contract (which, on account of its known profits, had become the object

of such pursuit) to _public auction_, he did not wait for receiving so

much as a _private proposal_ from Mr. Sulivan. The Secretary perceived

that in the rough draught of the contract the old recital of a proposal

to the board was inserted as a matter of course, but was contrary to the

fact; he therefore remarked it to Mr. Hastings. Mr. Hastings, with great

indifference, ordered that recital to be _omitted_; and the omission,

with the remark that led to it, has, with the same easy indifference,

been sent over to his masters.

The Governor-General and Council declare themselves apprehensive that

Mr. Sulivan might be a loser by his bargain, upon account of troubles

which they supposed existing in the country which was the object of it.

This was the more indulgent, because the contractor was tolerably

secured against all losses. He received a certain price for his

commodity; but he was not obliged to pay any certain price to the

cultivator, who, having no other market than his, must sell it to him at

his own terms. He was to receive half the yearly payment by _advance_,

and he was not obliged to advance to the cultivator more than what he

thought expedient; but if this should not be enough, he might, if he

pleased, draw the _whole_ payment before the total delivery: such were

the terms of the engagement with him. He is a contractor of a new

species, who employs no capital whatsoever of his own, and has the

market of compulsion at his entire command. But all these securities

were not sufficient for the anxious attention of the Supreme Council to

Mr. Sulivan's welfare: Mr. Hastings had before given him the contract

without any proposal on his part; and to make their gift perfect, in a

second instance they proceed a step beyond their former ill precedent,

and they contract with Mr. Sulivan for _four_ years.

Nothing appears to have been considered but the benefit of the

contractor, and for this purpose the solicitude shown in all the

provisions could not be exceeded. One of the first things that struck

Mr. Hastings as a blemish on his gift was the largeness of the penalty

which he had on former occasions settled as the sanction of the

contract: this he now discovered to be so great as to be likely to

frustrate its end by the impossibility of recovering so large a sum. How

a large penalty can prevent the recovery of any, even the smallest part

of it, is not quite apparent. In so vast a concern as that of opium, a

fraud which at first view may not appear of much importance, and which

may be very difficult in the discovery, may easily counterbalance the

reduced penalty in this contract, which was settled in favor of Mr.

Sulivan at about 20,000_l._

Monopolies were (as the House has observed) only tolerated evils, and at

best upon trial; a clause, therefore, was inserted in the contracts to

Mackenzie, annulling the obligation, if the Court of Directors should

resolve to abolish the monopoly; but at the request of Mr. Sulivan the

contract was without difficulty purged of this obnoxious clause. The

term was made absolute, the monopoly rendered irrevocable, and the

discretion of the Directors wholly excluded. Mr. Hastings declared the

reserved condition to be no longer necessary, "because the Directors had

approved the monopoly."

The Chiefs and Councils at the principal factories had been obliged to

certify the quantity and quality of the opium before its transport to

Calcutta; and their control over the contractor had been assigned as the

reason for not leaving to those factories the management of this

monopoly. Now things were changed. Orders were sent to discontinue this

measure of invidious precaution, and the opium was sent to Calcutta

without anything done to ascertain its quality or even its quantity.

An office of inspection had been also appointed to examine the quality

of the opium on its delivery at the capital settlement. In order to ease

Mr. Sulivan from this troublesome formality, Mr. Hastings abolished the

office; so that Mr. Sulivan was then totally freed from all examination,

or control whatsoever, either first or last.

These extraordinary changes in favor of Mr. Sulivan were attended with

losses to others, and seem to have excited much discontent. This

discontent it was necessary in some manner to appease. The

vendue-master, who was deprived of his accustomed dues on the public

sales of the opium by the private dealing, made a formal complaint to

the board against this, as well as other proceedings relative to the

same business. He attributed the private sale to "_reasons of state_";

and this strong reflection both on the Board of Trade and the Council

Board was passed over without observation. He was quieted by appointing

him to the duty of these very inspectors whose office had been just

abolished as useless. The House will judge of the efficacy of the

revival of this office by the motives to it, and by Mr. Hastings giving

that to _one_ as _a compensation_ which had been executed by several as

_a duty_. However, the orders for taking away the precautionary

inspection at Patna still remained in force.

Some benefits, which had been given to former contractors at the

discretion of the board, were no longer held under that loose

indulgence, but were secured to Mr. Sulivan by his contract. Other

indulgences, of a lesser nature, and to which no considerable objection

could be made, were on the application of a Mr. Benn, calling himself

his attorney, granted.

Your Committee, examining Mr. Higginson, late a member of the Board of

Trade, on that subject, were informed, that this contract, very soon

after the making, was generally understood at Calcutta to have been sold

to this Mr. Benn, but he could not particularize the sum for which it

had been assigned,--and that Mr. Benn had afterwards sold it to a Mr.

Young. By this transaction it appears clearly that the contract was

given to Mr. Sulivan for no other purpose than to supply him with a sum

of money; and the sale and re-sale seem strongly to indicate that the

reduction of the penalty, and the other favorable conditions, were not

granted for his ease in a business which he never was to execute, but to

heighten the value of the object which he was to sell. Mr. Sulivan was

at the time in Mr. Hastings's family, accompanied him in his progresses,

and held the office of Judge-Advocate.

The monopoly given for these purposes thus permanently secured, all

power of reformation cut off, and almost every precaution against fraud

and oppression removed, the Supreme Council found, or pretended to find,

that the commodity for which they had just made such a contract was not

a salable article,--and in consequence of this opinion, or pretence,

entered upon a daring speculation hitherto unthought of, that of sending

the commodity on the Company's account to the market of Canton. The

Council alleged, that, the Dutch being driven from Bengal, and the seas

being infested with privateers, this commodity had none, or a very dull

and depreciated demand.

Had this been true, Mr. Hastings's conduct could admit of no excuse. He

ought not to burden a falling market by long and heavy engagements. He

ought studiously to have kept in his power the means of proportioning

the supply to the demand. But his arguments, and those of the Council on

that occasion, do not deserve the smallest attention. Facts, to which

there is no testimony but the assertion of those who produce them in

apology for the ill consequences of their own irregular actions, cannot

be admitted. Mr. Hastings and the Council had nothing at all to do with

that business: the Court of Directors had wholly taken the management of

opium out of his and their hands, and by a solemn adjudication fixed it

in the Board of Trade. But after it had continued there some years, Mr.

Hastings, a little before his grant of the monopoly to Mr. Sulivan,

thought proper to reverse the decree of his masters, and by his own

authority to recall it to the Council. By this step he became

responsible for all the consequences.

The Board of Trade appear, indeed, to merit reprehension for disposing

of the opium by private contract, as by that means the unerring standard

of the public market cannot be applied to it. But they justified

themselves by their success; and one of their members informed your

Committee that their last sale had been a good one: and though he

apprehended a fall in the next, it was not such as in the opinion of

your Committee could justify the Council-General in having recourse to

untried and hazardous speculations of commerce. It appears that there

must have been a market, and one sufficiently lively. They assign as a

reason of this assigned [alleged?] dulness of demand, that the Dutch had

been expelled from Bengal, and could not carry the usual quantity to

Batavia. But the Danes were not expelled from Bengal, and Portuguese

ships traded there: neither of them were interdicted at Batavia, and the

trade to the eastern ports was free to them. The Danes actually applied

for and obtained an increase of the quantity to which their purchases

had been limited; and as they asked, so they received this indulgence as

a great favor. It does not appear that they were not very ready to

supply the place of the Dutch. On the other hand, there is no doubt that

the Dutch would most gladly receive an article, convenient, if not

necessary, to the circulation of their commerce, from the Danes, or

under any name; nor was it fit that the Company should use an extreme

strictness in any inquiry concerning the necessary disposal of one of

their own staple commodities.

The supply of the Canton treasury with funds for the provision of the

next year's China investment was the ground of this plan. But the

Council-General appear still to have the particular advantage of Mr.

Sulivan in view,--and, not satisfied with breaking so many of the

Company's orders for that purpose, to make the contract an object

salable to the greatest advantage, were obliged to transfer their

personal partiality from Mr. Sulivan to the contract itself, and to hand

it over to the assignees through all their successions. When the opium

was delivered, the duties and emoluments of the contractor ended; but

(it appears from Mr. Williamson's letter, 18th October, 1781, and it is

not denied by the Council-General) this new scheme _furnished them with

a pretext of making him broker for the China investment, with the profit

of a new commission_,--to what amount does not appear. But here their

constant and vigilant observer, the vendue-master, met them again:--they

seemed to live in no small terror of this gentleman. To satisfy him for

the loss of his fee to which he was entitled upon the public sale, they

gave _him_ also a commission of one per cent on the investment. Thus was

this object loaded with a double commission; and every act of partiality

to one person produced a chargeable compensation to some other for the

injustice that such partiality produced. Nor was this the whole. The

discontent and envy excited by this act went infinitely further than to

those immediately affected, and something or other was to be found out

to satisfy as many as possible.

As soon as it was discovered that the Council entertained a design of

opening a trade on those principles, it immediately engaged the

attention of such as had an interest in speculations of freight.

A memorial seems to have been drawn early, as it is dated on the 29th of

March, though it was not the first publicly presented to the board. This

memorial was presented on the 17th of September, 1781, by Mr. Wheler,

conformably (as he says) to the desire of the Governor-General; and it

contained a long and elaborate dissertation on the trade to China,

tending to prove the advantage of extending the sale of English

manufactures and other goods to the North of that country, beyond the

usual emporium of European nations. This ample and not ill-reasoned

theoretical performance (though not altogether new either in speculation

or attempt) ended by a practical proposition, very short, indeed, of the

ideas opened in the preliminary discourse, but better adapted to the

immediate effect. It was, that the Company should undertake the sale of

its own opium in China, and commit the management of the business to the

memorialist, who offered to furnish them with a strong armed ship for

that purpose. The offer was accepted, and the agreement made with him

for the transport of two thousand chests.

A proposal by another person was made the July following the date of

this project: it appears to have been early in the formal delivery at

the board: this was for the export of one thousand four hundred and

eighty chests. This, too, was accepted, but with new conditions and

restrictions: for in so vast and so new an undertaking great

difficulties occurred. In the first place, all importation of that

commodity is rigorously forbidden by the laws of China. The impropriety

of a political trader, who is lord over a great empire, being concerned

in a contraband trade upon his own account, did not seem in the least to

affect them; but they were struck with the obvious danger of subjecting

their goods to seizure by the vastness of the prohibited import. To

secure the larger adventure, they require of the China factory that

Colonel Watson's ship should enter the port of Canton as an _armed

ship_, (they would not say a ship of war, though that must be meant,)

that her cargo should not be reported; they also ordered that other

measures should be adopted to secure this prohibited article from

seizure. If the cargo should get in safe, another danger was in

view,--the overloading the Chinese market by a supply beyond the demand;

for it is obvious that contraband trade must exist by small quantities

of goods poured in by intervals, and not by great importations at one

time. To guard against this inconvenience, they divide their second,

though the smaller adventure, into two parts; one of which was to go to

the markets of the barbarous natives which inhabit the coast of Malacca,

where the chances of its being disposed of by robbery or sale were at

least equal. If the opium should be disposed of there, the produce was

to be invested in merchandise salable in China, or in dollars, if to be

had. The other part (about one half) was to go in kind directly to the

port of Canton.

The dealing at this time seemed closed; but the gentlemen who chartered

the ships, always recollecting something, applied anew to the board to

be furnished with cannon from the Company's ordnance. Some was

delivered to them; but the Office of Ordnance (so heavily expensive to

the Company) was not sufficient to spare a few iron guns for a merchant

ship. Orders were given to cast a few cannon, and an application made to

Madras, at a thousand miles' distance, for the rest. Madras answers,

that they cannot exactly comply with the requisition; but still the

board at Bengal _hopes_ better things from them than they promise, and

flatter themselves that with their assistance they shall properly arm a

ship of thirty-two guns.

Whilst these dispositions were making, the first proposer, perceiving

advantages from the circuitous voyage of the second which had escaped

his observation, to make amends for his first omission, improved both on

his own proposal and on that of the person who had improved on him. He

therefore applied for leave to take two hundred and fifty chests on his

own account, which he said could "be _readily disposed of_ at the

several places where it was necessary for the ship to touch for wood and

water, or intelligence, during her intended voyage through _the Eastern

Islands_." As a corrective to this extraordinary request, he assured the

board, that, if he should meet with any unexpected delay at these

markets, he would send their cargo to its destination, having secured a

_swift-sailing_ sloop for the _protection_ of his ship; and this sloop

he proposed, in such a case, to leave behind. Such an extraordinary

eagerness to deal in opium lets in another view of the merits of the

alleged dulness of the market, on which this trade was undertaken for

the Company's account.

The Council, who had with great condescension and official facility

consented to every demand hitherto made, were not reluctant with regard

to this last. The quantity of opium required by the freighters, and the

permission of a trading voyage, were granted without hesitation. The

cargo having become far more valuable by this small infusion of private

interest, the armament which was deemed sufficient to defend the

Company's large share of the adventure was now discovered to be unequal

to the protection of the whole. For the convoy of these two ships the

Council hire and arm another. How they were armed, or whether in fact

they were properly armed at all, does not appear. It is true that the

Supreme Council proposed that these ships should also convey supplies to

Madras; but this was a secondary consideration: their primary object was

the adventure of opium. To this they were permanently attached, and were

obliged to attend to its final destination.

The difficulty of disposing of the opium according to this project being

thus got over, a material preliminary difficulty still stood in the way

of the whole scheme. The contractor, or his assignees, were to be paid.

The Company's treasure was wholly exhausted, and even its credit was

exceedingly strained. The latter, however, was the better resource, and

to this they resolved to apply. They therefore, at different times,

opened two loans of one hundred thousand pounds each. The first was

reserved for the Company's servants, civil and military, to be

distributed in shares according to their rank; the other was more

general. The terms of both loans were, that the risk of the voyage was

to be on account of _the Company_. The payment was to be in bills (at a

rate of exchange settled from the supercargoes at Canton) upon the same

Company. In whatever proportion the adventure should fail, either in the

ships not safely arriving in China or otherwise, in that proportion the

subscribers were to content themselves with the Company's bonds for

their money, bearing eight per cent interest. A share in this

subscription was thought exceeding desirable; for Mr. Hastings writes

from Benares, where he was employed in the manner already reported and

hereafter to be observed upon, requesting that the subscription should

be left open to his officers who were employed in the military

operations against Cheyt Sing; and accordingly three majors, seven

captains, twenty-three lieutenants, the surgeon belonging to the

detachment, and two civil servants of high rank who attended him, were

admitted to subscribe.

Bills upon Europe without interest are always preferred to the Company's

bonds, even at the high interest allowed in India. They are, indeed, so

greedily sought there, and (because they tend to bring an immediate and

visible distress in Leadenhall Street) so much dreaded here, that by an

act of Parliament the Company's servants are restricted from drawing

bills beyond a certain amount upon the Company in England. In Bengal

they have been restrained to about one hundred and eighty thousand

pounds annually. The legislature, influenced more strongly with the same

apprehensions, has restrained the Directors, as the Directors have

restrained their servants, and have gone so far as to call in the power

of the Lords of the Treasury to authorize the acceptance of any bills

beyond an amount prescribed in the act.

The false principles of this unmercantile transaction (to speak of it in

the mildest terms) were too gross not to be visible to those who

contrived it. That the Company should be made to borrow such a sum as

two hundred thousand pounds[7] at eight per cent, (or terms deemed by

the Company to be worse,) in order first to buy a commodity represented

by themselves as depreciated in its ordinary market, in order afterwards

to carry one half of it through a circuitous trading voyage, depending

for its ultimate success on the prudent and fortunate management of two

or three sales, and purchases and re-sales of goods, and the chance of

two or three markets, with all the risks of sea and enemy, was plainly

no undertaking for such a body. The activity, private interest, and the

sharp eye of personal superintendency may now and then succeed in such

projects; but the remote inspection and unwieldy movements of great

public bodies can find nothing but loss in them. Their gains,

comparatively small, ought to be upon sure grounds; but here (as the

Council states the matter) the private trader actually declines to deal,

which is a proof more than necessary to demonstrate the extreme

imprudence of such an undertaking on the Company's account. Still

stronger and equally obvious objections lay to that member of the

project which regards the introduction of a contraband commodity into

China, sent at such a risk of seizure not only of the immediate object

to be smuggled in, but of all the Company's property in Canton, and

possibly at a hazard to the existence of the British factory at that

port.

It is stated, indeed, that a monopolizing company in Canton, called the

Cohong, had reduced commerce there to a deplorable state, and had

rendered the gains of private merchants, either in opium or anything

else, so small and so precarious that they were no longer able by

purchasing that article to furnish the Company with money for a China

investment. For this purpose the person whose proposal is accepted

declares his project to be to set up a monopoly on the part of the

Company against the monopoly of the Chinese merchants: but as the

Chinese monopoly is at home, and supported (as the minute referred to

asserts) by the country magistrates, it is plain it is the Chinese

company, not the English, which must prescribe the terms,--particularly

in a commodity which, if withheld from them at their market price, they

can, whenever they please, be certain of purchasing as a condemned

contraband.

There are two further circumstances in this transaction which strongly

mark its character. The first is, that this adventure to China was not

recommended to them by the factory of Canton; it was dangerous to

attempt it without their previous advice, and an assurance, grounded on

the state of the market and the dispositions of the government, that the

measure, in a commercial light, would be profitable, or at least safe.

Neither was that factory applied to on the state of the bills which,

upon their own account, they might be obliged to draw upon Europe, at a

time when the Council of Bengal direct them to draw bills to so enormous

an amount.

The second remarkable circumstance is, that the Board of Trade in

Calcutta (the proper administrator of all that relates to the Company's

investment) does not seem to have given its approbation to the project,

or to have been at all consulted upon it. The sale of opium had been

adjudged to the Board of Trade for the express purpose of selling it in

Bengal, not in China,--and of employing the produce of such sale in the

manufactures of the country in which the original commodity was

produced. On the whole, it appears a mere trading speculation of the

Council, invading the department of others, without lights of its own,

without authority or information from any other quarter. In a commercial

view, it straitened the Company's investment to which it was destined;

as a measure of finance, it is a contrivance by which a monopoly formed

for the increase of revenue, instead of becoming one of its resources,

involves the treasury, in the first instance, in a debt of two hundred

thousand pounds.

If Mr. Hastings, on the expiration of Mr. Mackenzie's contract, the

advantages of which to the Company had been long doubtful, had put

himself in a situation to do his duty, some immediate loss to the

revenue would have been the worst consequence of the alleged

depreciation; probably it would not have been considerable. Mr.

Mackenzie's contract, which at first was for three years, had been only

renewed for a year. Had the same course been pursued with Mr. Sulivan,

they would have had it in their power to adopt some plan which might

have secured them from any loss at all. But they pursued another plan:

they carefully put all remedy still longer out of their reach by giving

their contract for four years. To cover all these irregularities, they

interest the settlement in their favor by holding out to them the most

tempting of all baits in a chance of bills upon Europe.

In this manner the servants abroad have conducted themselves with regard

to Mr. Sulivan's contract for opium, and the disposal of the commodity.

In England the Court of Directors took it into consideration. First, as

to the contract, in a letter dated 12th July, 1782, they say, that,

"having condemned the contract entered into with Mr. Mackenzie for the

provision of opium, they cannot but be _surprised_ at your having

concluded a new contract for _four_ years relative to that article with

Mr. Stephen Sulivan, without leaving the decision of it to the Court of

Directors."

The sentiments of the Directors are proper, and worthy of persons in

public trust. Their _surprise_, indeed, at the disobedience to their

orders is not perfectly natural in those who for many years have

scarcely been obeyed in a single instance. They probably asserted their

authority at this time with as much vigor as their condition admitted.

They proceed: "We do not mean," say they, "to convey any censure on Mr.

Sulivan respecting the transaction; but we cannot withhold our

displeasure from the Governor-General and Council at such an instance of

_contempt_ of our authority." They then proceed justly to censure the

removal of the inspection, and some other particulars of this gross

proceeding. As to the criminality of the parties, it is undoubtedly true

that a breach of duty in servants is highly aggravated by the rank,

station, and trust of the offending party; but no party, in such

conspiracy to break orders, appear to us wholly free from fault.

The Directors did their duty in reprobating this contract; but it is the

opinion of your Committee that further steps ought to be taken to

inquire into the legal validity of a transaction which manifestly

attempts to prevent the Court of Directors from applying any remedy to

a grievance which has been for years the constant subject of complaints.

Both Mr. Sulivan and Mr. Hastings are the Company's servants, bound by

their covenants and their oaths to promote the interest of their

masters, and both equally bound to be obedient to their orders. If the

Governor-General had contracted with a stranger, not apprised of the

Company's orders, and not bound by any previous engagement, the contract

might have been good; but whether a contract made between two servants,

contrary to the orders of their common master, and to the prejudice of

his known interest, be a breach of trust on both sides, and whether the

contract can in equity have force to bind the Company, whenever they

shall be inclined to free themselves and the country they govern from

this mischievous monopoly, your Committee think a subject worthy of

further inquiry.

With regard to the disposal of the opium, the Directors very properly

condemn the direct contraband, but they approve the trading voyage. The

Directors have observed nothing concerning the loans: they probably

reserved that matter for future consideration.

In no affair has the connection between servants abroad and persons in

power among the proprietors of the India Company been more discernible

than in this. But if such confederacies, cemented by such means, are

suffered to pass without due animadversion, the authority of Parliament

must become as inefficacious as all other authorities have proved to

restrain the growth of disorders either in India or in Europe.

SALT.

The reports made by the two committees of the House which sat in the

years 1772 and 1773 of the state and conduct of the inland trade of

Bengal up to that period have assisted the inquiries of your Committee

with respect to the third and last article of monopoly, viz., that of

salt, and made it unnecessary for them to enter into so minute a detail

on that subject as they have done on some others.

Your Committee find that the late Lord Clive constantly asserted that

the salt trade in Bengal had been a monopoly time immemorial,--that it

ever was and ever must be a monopoly,--and that Coja Wazid, and other

merchants long before him, had given to the Nabob and his ministers two

hundred thousand pounds per annum for the exclusive privilege. The

Directors, in their letter of the 24th December, 1776, paragraph 76,

say, "that it has ever been in a great measure an exclusive trade."

The Secret Committee report,[8] that under the government of the Nabobs

the duty on salt made in Bengal was two and an half per cent paid by

Mussulmen, and five per cent paid by Gentoos. On the accession of Mir

Cassim, in 1760, the claim of the Company's servants to trade in salt

duty-free was first avowed. Mr. Vansittart made an agreement with him by

which the duties should be fixed at nine per cent. The Council annulled

the agreement, and reduced the duty to two and an half per cent. On this

Mir Cassim ordered that no customs or duties whatsoever should be

collected for the future. But a majority of the Council (22nd March,

1763) resolved, that the making the exemption general was a breach of

the Company's privileges, and that the Nabob should be positively

required to recall it, and collect duties as before from the country

merchants, and all other persons who had not the protection of the

Company's _dustuck_. The Directors, as the evident reason of the thing

and as their duty required, disapproved highly of these transactions,

and ordered (8th February, 1764) _a final and effectual stop to be put

to the inland trade in salt_, and several other articles of commerce.

But other politics and other interests prevailed, so that in the May

following a General Court resolved, that it should be recommended to the

Court of Directors to reconsider the preceding orders; in consequence of

which the Directors ordered the Governor and Council to form a plan, in

concert with the Nabob, for regulating the inland trade.

On these last orders Lord Clive's plan was formed, in 1765, for

engrossing the sole purchase of salt, and dividing the profits among the

Company's senior servants. The Directors, who had hitherto reluctantly

given way to a monopoly under any ideas or for any purposes, disapproved

of this plan, and on the 17th May, 1766, ordered it to be abolished; but

they substituted no other in its room.[9] In this manner things

continued until November, 1767, when the Directors repeated their orders

for excluding all persons whatever, excepting the natives only, from

being concerned in the inland trade in salt; and they declared that

(vide par. 90) "_such trade is hereby abolished and put a final end

to_." In the same letter (par. 92) they ordered that the salt trade

should be laid open to the natives in general, subject to such a duty

as might produce one hundred and twenty thousand pounds a year. This

policy was adopted by the legislature. In the act of 1773 it was

expressly provided, that it should not be lawful for any of his

Majesty's subjects to engage, intermeddle, or be any way concerned,

directly or indirectly, in the inland trade in salt, except on the India

Company's account.

Under the positive orders of the Company, the salt trade appears to have

continued open from 1768 to 1772. The act, indeed, contained an

exception in favor of the Company, and left them a liberty of dealing in

salt upon their own account. But still this policy remained unchanged,

and their orders unrevoked. But in the year 1772, without any

instruction from the Court of Directors indicating a change of opinion

or system, the whole produce was again monopolized, professedly for the

use of the Company, by Mr. Hastings. Speaking of this plan, he says

(letter to the Directors, 22d February, 1775): "No new hardship has been

imposed upon the salt manufacturers by taking the management of that

article into the hands of government; the only difference is, that the

profit which was before reaped by English gentlemen and by banians is

now acquired by the Company." In May, 1766, the Directors had condemned

the monopoly _on any conditions whatsoever_. "At that time they thought

it neither consistent with their honor nor their dignity to promote such

an exclusive trade."[10] "They considered it, too, as disgraceful, _and

below the dignity of their present situation_, to allow of such a

monopoly, and that, were they to allow it under any restrictions, they

should consider themselves as assenting and subscribing to all the

mischiefs which Bengal had presented to them for four years past."[11]

Notwithstanding this solemn declaration, in their letter of 24th

December, 1776, they approve the plan of Mr. Hastings, and say, "that

the monopoly, _on its present footing_, can be no considerable grievance

to the country," &c.

This, however, was a rigorous monopoly. The account given of it by

General Clavering, Colonel Monson, and Mr. Francis, in their minute of

11th January, 1775, in which the situation of the _molungees_, or

persons employed in the salt manufacture, is particularly described, is

stated at length in the Appendix. Mr. Hastings himself says, "The power

of obliging molungees to work has been customary from time immemorial."

Nothing but great and clear advantage to government could account for,

and nothing at all perhaps could justify, the revival of a monopoly thus

circumstanced. The advantage proposed by its revival was the

transferring the profit, which was before reaped by English gentlemen

and banians, to the Company. The profits of the former were not

problematical. It was to be seen what the effect would be of a scheme to

transfer them to the latter, even under the management of the projector

himself. In the Revenue Consultations of September, 1776, Mr. Hastings

said, "Many causes have since combined to reduce this article of revenue

_almost to nothing_. The plan which I am _now_ inclined to recommend for

the future management of the salt revenue differs widely from that

which I adopted under different circumstances."

It appears that the ill success of his former scheme did not deter him

from recommending another. Accordingly, in July, 1777, Mr. Hastings

proposed, and it was resolved, that the salt mahls should be let, _with_

the lands, to the farmers and zemindars for a ready-money rent,

including duties,--the salt to be left to their disposal. After some

trial of this method, Mr. Hastings thought fit to abandon it. In

September, 1780, he changed his plan a third time, and proposed the

institution of a _salt office_; the salt was to be again engrossed for

the benefit of the Company, and the management conducted by a number of

salt agents.

From the preceding facts it appears that in this branch of the Company's

government little regard has been paid to the ease and welfare of the

natives, and that the Directors have nowhere shown greater inconsistency

than in their orders on this subject. Yet salt, considering it as a

necessary of life, was by no means a safe and proper subject for so many

experiments and innovations. For ten years together the Directors

reprobated the idea of suffering this necessary of life to be engrossed

on _any condition whatsoever_, and strictly prohibited all Europeans

from trading in it. Yet, as soon as they were made to expect from Mr.

Hastings that the profits of the monopoly should be converted to their

own use, they immediately declared that it "could be no considerable

grievance to the country," and authorized its continuance, until he

himself, finding it produced little or nothing, renounced it of his own

accord. Your Committee are apprehensive that this will at all times,

whatever flattering appearance it may wear for a time, be the fate of

any attempt to monopolize the salt for the profit of government. In the

first instance it will raise the price on the consumer beyond its just

level; but that evil will soon be corrected by means ruinous to the

Company as monopolists, viz., by the embezzlement of their own salt, and

by the importation of foreign salt, neither of which the government of

Bengal may have power for any long time to prevent. In the end

government will probably be undersold and beaten down to a losing price.

Or, if they should attempt to force all the advantages from this article

of which by every exertion it may be made capable, it may distress some

other part of their possessions in India, and destroy, or at least

impair, the natural intercourse between them. Ultimately it may hurt

Bengal itself, and the produce of its landed revenue, by destroying the

vent of that grain which it would otherwise barter for salt.

Your Committee think it hardly necessary to observe, that the many

changes of plan which have taken place in the management of the salt

trade are far from honorable to the Company's government,--and that,

even if the monopoly of this article were a profitable concern, it

should not be permitted. Exclusive of the general effect of this and of

all monopolies, the oppressions which the manufacturers of salt, called

_molungees_, still suffer under it, though perhaps alleviated in some

particulars, deserve particular attention. There is evidence enough on

the Company's records to satisfy your Committee that these people have

been treated with great rigor, and not only defrauded of the due payment

of their labor, but delivered over, like cattle, in succession, to

different masters, who, under pretence of buying up the balances due to

their preceding employers, find means of keeping them in perpetual

slavery. For evils of this nature there can be no perfect remedy as long

as the monopoly continues. They are in the nature of the thing, and

cannot be cured, or effectually counteracted, even by a just and

vigilant administration on the spot. Many objections occur to the

farming of any branch of the public revenue in Bengal, particularly

against farming the salt lands. But the dilemma to which government by

this system is constantly reduced, of authorizing great injustice or

suffering great loss, is alone sufficient to condemn it. Either

government is expected to support the farmer or contractor in all his

pretensions by an exertion of power, which tends of necessity to the

ruin of the parties subjected to the farmer's contract, and to the

suppression of free trade,--or, if such assistance be refused him, he

complains that he is not supported, that private persons interfere with

his contract, that the manufacturers desert their labor, and that

proportionate deductions must be allowed him.

After the result of their examination into the general nature and effect

of this monopoly, it remains only for your Committee to inquire whether

there was any valid foundation for that declaration of Mr. Hastings

which we conclude must have principally recommended the monopoly of salt

to the favor of the Court of Directors, viz., "that the profit, which

was before reaped by English gentlemen, and by banians, was now acquired

by the Company." On the contrary, it was proved and acknowledged before

the Governor-General and Council, when they inquired into this matter,

in March, 1775, that the Chiefs and Councils of those districts in which

there were salt mahls reserved particular salt farms for their _own_

use, and divided the profits, in certain stated proportions, among

themselves and their assistants. But, unless a detail of these

transactions, and of the persons concerned in them, should be called for

by the House, it is our wish to avoid entering into it. On one example

only your Committee think it just and proper to insist, stating first to

the House on what principles they have made this selection.

In pursuing their inquiries, your Committee have endeavored chiefly to

keep in view the conduct of persons in the highest station, particularly

of those in whom the legislature, as well as the Company, have placed a

special confidence,--judging that the conduct of such persons is not

only most important in itself, but most likely to influence the

subordinate ranks of the service. Your Committee have also examined the

proceedings of the Court of Directors on all those instances of the

behavior of their servants that seemed to deserve, and did sometimes

attract, their immediate attention. They constantly find that the

negligence of the Court of Directors has kept pace with, and must

naturally have quickened, the growth of the practices which they have

condemned. Breach of duty abroad will always go hand in hand with

neglect of it at home. In general, the Court of Directors, though

sufficiently severe in censuring offences, and sometimes in punishing

those whom they have regarded as offenders of a lower rank, appear to

have suffered the most conspicuous and therefore the most dangerous

examples of disobedience and misconduct in the first department of their

service to pass with a feeble and ineffectual condemnation. In those

cases which they have deemed too apparent and too strong to be

disregarded even with safety to themselves, and against which their

heaviest displeasure has been declared, it appears to your Committee

that their interference, such as it was, had a mischievous rather than a

useful tendency. A total neglect of duty in this respect, however

culpable, is not to be compared, either in its nature or in its

consequences, with the destructive principles on which they have acted.

It has been their practice, if not system, to inquire, to censure, and

not to punish. As long as the misconduct of persons in power in Bengal

was encouraged by nothing but the hopes of concealment, it may be

presumed that they felt some restraint upon their actions, and that they

stood in some awe of the power placed over them; whereas it is to be

apprehended that the late conduct of the Court of Directors tells them,

in effect, that they have nothing to fear from the certainty of a

discovery.

On the same principle on which your Committee have generally limited

their researches to the persons placed by Parliament or raised or put in

nomination by the Court of Directors to the highest station in Bengal,

it was also their original wish to limit those inquiries to the period

at which Parliament interposed its authority between the Company and

their servants, and gave a new constitution to the Presidency of Fort

William. If the Company's servants had taken a new date from that

period, and if from thenceforward their conduct had corresponded with

the views of the legislature, it is probable that a review of the

transactions of remoter periods would not have been deemed necessary,

and that the remembrance of them would have been gradually effaced and

finally buried in oblivion. But the reports which your Committee have

already made have shown the House that from the year 1772, when those

proceedings commenced in Parliament on which the act of the following

year was founded, abuses of every kind have prevailed and multiplied in

Bengal to a degree unknown in former times, and are perfectly sufficient

to account for the present distress of the Company's affairs both at

home and abroad. The affair which your Committee now lays before the

House occupies too large a space in the Company's records, and is of too

much importance in every point of view, to be passed over.

Your Committee find that in March, 1775, a petition was presented to the

Governor-General and Council by a person called Coja Kaworke, an

Armenian merchant, resident at Dacca, (of which division Mr. Richard

Barwell had lately been Chief,) setting forth in substance, that in

November, 1772, the petitioner had farmed a certain salt district,

called Savagepoor, and had entered into a contract with the Committee of

Circuit for providing and delivering to the India Company the salt

produced in that district; that in 1773 he farmed another, called

Selimabad, on similar conditions. He alleges, that in February, 1774,

when Mr. Barwell arrived at Dacca, he charged the petitioner with

1,25,500 rupees, (equal to 13,000_l._,) as a contribution, and, in order

to levy it, did the same year deduct 20,799 rupees from the amount of

the _advance money_ which was ordered to be paid to the petitioner, on

account of the India Company, for the provision of salt in the two

farms, and, after doing so, compelled the petitioner to execute and

give him four different bonds for 77,627 rupees, in the name of one

Porran Paul, for the remainder of such contribution, or unjust profit.

Such were the allegations of the petition relative to the unjust

exaction. The harsh means of compelling the payment make another and

very material part; for the petitioner asserts, that, in order to

recover the amount of these bonds, guards were placed over him, and that

Mr. Barwell by ill usage and oppressions recovered from him at different

times 48,656 Arcot rupees, besides 283 rupees extorted by the

guard,--that, after this payment, two of the bonds, containing 36,313

rupees, were restored to him, and he was again committed to the charge

of four _peons_, or guards, to pay the amount of the remaining two

bonds. The petition further charges, that the said gentleman and his

people had also extorted from the petitioner other sums of money, which,

taken together, amounted to 25,000 rupees.

But the heaviest grievance alleged by him is, that, after the sums of

money had been extorted on account of the farms, the faith usual in such

transactions is allowed not to have been kept; but, after the petitioner

had been obliged to buy or compound for the farms, that they were taken

from him,--"that the said Richard Barwell, Esquire, about his departure

from Dacca, in October, 1774, for self-interest wrested from the

petitioner the aforesaid two mahls, (or districts,) and farmed them to

another person, notwithstanding he had extorted from the petitioner a

considerable sum of money on account of those purgunnahs."

To this petition your Committee find two accounts annexed, in which the

sums said to be paid to or taken by Mr. Barwell, and the respective

dates of the several payments, are specified; and they find that the

account of particulars agrees with and makes up the gross sum charged in

the petition.

Mr. Barwell's immediate answer to the preceding charge is contained in

two letters to the board, dated 23rd and 24th of March, 1775. The answer

is remarkable. He asserts, that "the whole of Kaworke's relation is a

gross misrepresentation of facts;--that the simple fact was, that in

January, 1774, the salt mahls of Savagepoor and Selimabad became _his_,

and were re-let by _him_ to this man, in the names of Bussunt Roy and

Kissen Deb, on condition that he should account with him [_Mr. Barwell_]

for profits to a certain sum, and that he [_Mr. Barwell_] engaged for

Savagepoor _in the persuasion of its being a very profitable farm_"; and

he concludes with saying, "If I am mistaken in my reasoning, and _the

wish to add to my fortune has warped my judgment_, in a transaction that

may appear to the board in a light different to what I view it in, it is

past,--I cannot recall it,--and I rather choose to admit an error than

deny a fact." In his second letter he says, "To the Honorable Court of

Directors I will submit all my rights in the salt contracts I engaged

in; and if in their opinion those rights vest in the Company, I will

account to them for the last shilling I have received from such

contracts, my intentions being upright; and as I never did wish to

profit myself to the prejudice of my employers, by their judgment I will

be implicitly directed."

The majority of the board desired that Kaworke's petition should be

transmitted to England by the ship then under dispatch; and it was

accordingly sent with Mr. Barwell's replies. Mr. Barwell moved that a

committee should be appointed to take into consideration what he had to

offer on the subject of Kaworke's petition; and a committee was

accordingly appointed, consisting of all the members of the Council

except the Governor-General.

The committee opened their proceedings with reading a second petition

from Kaworke, containing corrected accounts of cash said to be forcibly

taken, and of the extraordinary and unwarrantable profits taken or

received from him by Richard Barwell, Esquire; all which are inserted at

large in the Appendix. By these accounts Mr. Barwell is charged with a

balance or debt of 22,421 rupees to Kaworke. The principal difference

between him and Mr. Barwell arises from a different mode of stating the

accounts acknowledged to exist between them. In the account current

signed by Mr. Barwell, he gives Kaworke credit for the receipt of 98,426

rupees, and charges him with a balance of 27,073 rupees.

The facts stated or admitted by Mr. Barwell are as follow: that the salt

farms of Selimabad and Savagepoor were _his_, and re-let by him to the

two Armenian merchants, Michael and Kaworke, on condition of their

paying him 1,25,000 rupees, exclusive of their engagements to the

Company; that the engagement was written in the name of Bussunt Roy and

Kissen Deb Sing; and Mr. Barwell says, that the reason of its being "in

these people's names was because _it was not thought consistent with the

public regulations that the names of any Europeans should appear_."

It is remarkable that this policy was carried to still greater length.

Means were used to remove such an obnoxious proceeding, as far as

possible, from the public eye; and they were such as will strongly

impress the House with the facility of abuse and the extreme difficulty

of detection in everything which relates to the Indian administration.

For these substituted persons were again represented by the further

substitution of another name, viz., _Rada Churn Dey_, whom Mr. Barwell

asserts to be a real person living at Dacca, and who _stood for the

factory of Dacca_; whereas the Armenian affirms that there was _no_ such

person as _Rada Churn_, and that it was a fictitious name.

Mr. Barwell, in his justification, proceeds to affirm, that Coja Kaworke

never had the management of the salt mahls, "_but on condition of

accounting to the former Chief, and to Mr. Barwell, for a specified

advantage arising from them_,--that Mr. Barwell determined, _without he

could reconcile the interests of the public with his own private

emoluments_, that he would not engage in this concern,--and that, when

he took an interest in it, _it was for specified benefit in money_, and

every condition in the public engagement to be answered."

Your Committee have stated the preceding facts in the same terms in

which they are stated by Mr. Barwell. The House is to judge how far they

amount to a defence against the charges contained in Kaworke's petition,

or to an admission of the truth of the principal part of it. Mr. Barwell

does not allow that compulsion was used to extort the money which he

received from the petitioner, or that the latter was dispossessed of the

farms in consequence of an offer made to Mr. Barwell by another person

(Ramsunder Paulet) to pay him a lac of rupees more for them. The truth

of _these_ charges has not been ascertained. They were declared by Mr.

Barwell to be false, but no attempt was made by him to invalidate or

confute them, though it concerned his reputation, and it was his duty,

in the station wherein he was placed, that charges of such a nature

should have been disproved,--at least, the accuser should have been

pushed to the proof of them. Nothing of this kind appears to have been

done, or even attempted.

The transaction itself, as it stands, is clearly collusive; the form in

which it is conducted is clandestine and mysterious in an extraordinary

degree; and the acknowledged object of it a great illicit profit, to be

gained by an agent and trustee of the Company at the expense of his

employers, and of which he confesses he has received a considerable

part.

The committee of the Governor-General and Council appear to have closed

their proceedings with several resolutions, which, with the answers

given by Mr. Barwell as a defence, are inserted in the Appendix. The

whole are referred thither together, on account of the ample extent of

the answer. These papers will be found to throw considerable light not

only on the points in question, but on the general administration of the

Company's revenues in Bengal. On some passages in Mr. Barwell's defence,

or account of his conduct, your Committee offer the following remarks to

the judgment of the House.

In his letter of the 23rd March, 1775, he says, that he engaged for

Savagepoor _in the persuasion of its being a very profitable farm_. In

this place your Committee think it proper to state the 17th article of

the regulations of the Committee of Circuit, formed in May, 1772, by

the President and Council, of which Mr. Barwell was a member, together

with their own observations thereupon.

17th. "That no peshcar, banian, or other servant, of whatever

denomination, of the collector, or relation or dependant of any such

servant, be allowed to farm lands, nor directly or indirectly to

hold a concern in any farm, nor to be security for any farmer; that

the collector be strictly enjoined to prevent such practices; and

that, if it shall be discovered that any one, _under a false name,

or any kind of collusion_, hath found means to evade this order, he

shall be subject to an heavy fine, proportionate to the amount of

the farm, and the farm shall be re-let, or made _khas_: and if it

shall appear that the collector shall have countenanced, approved,

or connived at a breach of this regulation, he shall stand _ipso

facto_ dismissed from his collectorship. Neither shall any European,

directly or indirectly, be permitted to rent lands in any part of

the country."

_Remark by the Board._

17th. "If the collector, or any persons who partake of his

authority, are permitted to be the farmers of the country, no other

persons will dare to be their competitors: of course they will

obtain the farms on their own terms. _It is not fit that the

servants of the Company should be dealers with their masters._ The

collectors are checks on the farmers. If they themselves turn

farmers, what checks can be found for _them_? What security will the

Company have for their property, or where are the ryots to look for

relief against oppressions?"

The reasons assigned for the preceding regulation seem to your Committee

to be perfectly just; but they can by no means be reconciled to those

which induced Mr. Barwell to engage in the salt farms of Selimabad and

Savagepoor. In the first place, his doing so is at length a direct and

avowed, though at first a covert, violation of the public regulation, to

which he was himself a party as a member of the government, as well as

an act of disobedience to the Company's positive orders on this subject.

In their General Letter of the 17th May, 1766, the Court of Directors

say, "We positively order, that no covenanted servant, or Englishman

residing under our protection, shall be suffered to hold any land for

his own account, directly or indirectly, in his own name or that of

others, or to be concerned in any farms or revenues whatsoever."

Secondly, if, instead of letting the Company's lands or farms to

indifferent persons, their agent or trustee be at liberty to hold them

himself, he will always (on principles stated and adhered to in the

defence) have a sufficient reason for farming them on his own account,

since he can at all times make them as profitable as he pleases; or if

he leases them to a third person, yet reserves an intermediate profit

for himself, that profit may be as great as he thinks fit, and must be

necessarily made at the Company's expense. If at the same time he be

collector of the revenues, it will be his interest to recommend

remissions in favor of the nominal farmer, and he will have it in his

power to sink the amount of his collections.

These principles, and the correspondent practices, leave the India

Company without any security that all the leases of the lands of Bengal

may not have been disposed of, under that administration which made the

five years' settlement in 1772, in the same manner and for the same

purpose.

To enable the House to judge how far this apprehension may be founded,

it will be proper to state, that Mr. Nicholas Grueber, who preceded Mr.

Barwell in the Chiefship of Dacca, in a letter dated 29th of April,

1775, declares that he paid to the Committee of Circuit twelve thousand

rupees as their profit on a single salt farm,--which sum, he says, "I

paid the Committee at their request, before their departure from Dacca,

and reimbursed myself out of _the advances_ directed to be issued for

the provision of the salt." Thus one illicit and mischievous transaction

always leads to another; and the irregular farming of revenue brings on

the misapplication of the commercial advances.

Mr. Barwell professes himself to be sensible "_that a wish to add to his

fortune may possibly have warped his judgment_, and that _he rather

chooses to admit an error than deny a fact_." But your Committee are of

opinion that the extraordinary caution and the intricate contrivances

with which his share in this transaction is wrapped up form a sufficient

proof that he was not altogether misled in his judgment; and though

there might be some merit in acknowledging an error before it was

discovered, there could be very little in a confession produced by

previous detection.

The reasons assigned by Mr. Barwell, in defence of the clandestine part

of this transaction, seem to your Committee to be insufficient in

themselves, and not very fit to be urged by a man in his station. In one

place he says, that "_it was not thought consistent with the public

regulations that the names of any Europeans should appear_." In another

he says, "I am aware of the objection that has been made to the English

taking farms under the names of natives, as prohibited by the Company's

orders; and I must _deviate_ a little upon this. It has been generally

understood that the scope and tendency of the Honorable Company's

prohibition of farms to Europeans was meant only to exclude such as

could not possibly, in their own persons, come under the jurisdiction of

the Duanné courts of Adawlet, because, upon any failure of engagements,

upon any complaint of unjust oppression, or other cause of discontent

whatever, it was supposed an European might screen himself from the

process of the country judicature. But it was never supposed _that an

European of credit and responsibility_ was absolutely incapable from

holding certain tenures under the sanction and authority of the country

laws, or from becoming security for such native farmers, contractors,

&c., &c., as he might protect and employ."

Your Committee have opposed this construction of Mr. Barwell's to the

positive order which the conduct it is meant to color has violated.

"Europeans of credit and responsibility," that is, Europeans armed with

wealth and power, and exercising offices of authority and trust, instead

of being excepted from the spirit of the restriction, must be supposed

the persons who are chiefly meant to be comprehended in it; for abstract

the idea of an European from the ideas of power and influence, and the

restriction is no longer rational.

Your Committee are therefore of opinion that the nature of the evil

which was meant to be prevented by the above orders and regulations was

not altered, or the evil itself diminished, by the collusive methods

made use of to evade them,--and that, if the regulations were proper,

(as they unquestionably were,) they ought to have been punctually

complied with, particularly by the members of the government, _who

formed the plan_, and who, as trustees of the Company, were especially

answerable for their being duly carried into execution. Your Committee

have no reason to believe that it could ever have been generally

understood "that the Company's prohibition of farms to Europeans was

meant only to exclude such as could not possibly, in their own persons,

come under the jurisdiction of the Duanné courts": no such restriction

is so much as hinted at. And if it had been so understood, Mr. Barwell

was one of the persons who, from their rank, station, and influence,

must have been the principal objects of the prohibition. Since the

establishment of the Company's influence in Bengal, no Europeans, of any

rank whatever, have been subject to the process of the country

judicature; and whether they act avowedly for themselves, and take farms

in their own name, or substitute native Indians to act for them, the

difference is not material. The same influence that screened an European

from the jurisdiction of the country courts would have equally protected

his native agent and representative. For many years past the Company's

servants have presided in those courts, and in comparison with _their_

authority the native authority is nothing.

The earliest instructions that appear to have been given by the Court of

Directors in consequence of these transactions in Bengal are dated the

5th of February, 1777. In their letter of that date they applaud the

proceedings of the board, meaning the majority, (then consisting of

General Clavering, Colonel Monson, and Mr. Francis,) _as highly

meritorious_, and promise them their _firmest support_. "Some of the

_cases_" they say, "_are so flagrantly corrupt, and others attended with

circumstances so oppressive to the inhabitants, that it would be unjust

to suffer the delinquents to go unpunished_." With this observation

their proceedings appear to have ended, and paused for more than a year.

On the 4th of March, 1778, the Directors appear to have resumed the

subject. In their letter of that date they instructed the Governor and

Council forthwith to commence a prosecution in the Supreme Court of

Judicature against the persons who composed the Committee of Circuit, or

their representatives, and also against Mr. Barwell, in order to

recover, for the use of the Company, the amount of all advantages

acquired by them from their several engagements in salt contracts and

farms. Adverting, however, to the declaration made by Mr. Barwell, that

he would account to the Court of Directors for the last shilling he had

received and abide implicity by their judgment, they thought it

probable, that, on being acquainted with their peremptory orders for

commencing a prosecution, he might be desirous of paying his share of

profits into the Company's treasury; and they pointed out a precaution

to be used in accepting such a tender on his part.

On this part of the transaction your Committee observe, that the Court

of Directors appear blamable in having delayed till February, 1777, to

take any measure in consequence of advices so interesting and important,

and on a matter concerning which they had made so strong a

declaration,--considering that early in April, 1776, they say "they had

investigated the charges, and had then come to certain resolutions

concerning them." But their delaying to send out positive orders for

commencing a prosecution against the parties concerned till March, 1778,

cannot be accounted for. In the former letter they promise, if they

should find it necessary, to return the original covenants of such of

their servants as had been any ways concerned in the undue receipt of

money, in order to enable the Governor-General and Council to recover

the same by suits in the Supreme Court. But your Committee do not find

that the covenants were ever transmitted to Bengal. To whatever cause

these instances of neglect and delay may be attributed, they could not

fail to create an opinion in Bengal that the Court of Directors were not

heartily intent upon the execution of their own orders, and to

discourage those members of government who were disposed to undertake so

invidious a duty.

In consequence of these delays, even their first orders did not arrive

in Bengal until some time after the death of Colonel Monson, when the

whole power of the board had devolved to Mr. Hastings and Mr. Barwell.

When they sent what they call _their positive orders_, in March, 1778,

they had long been apprised of the death of Colonel Monson, and must

have been perfectly certain of the effect which that event would have on

the subsequent measures and proceedings of the Governor-General and

Council. Their opinion of the principles of those gentlemen appears in

their letter of the 28th of November, 1777, wherein they say "they

cannot but express their concern that the power of granting away their

property in perpetuity should have devolved upon such persons."

But the conduct of the Court of Directors appears to be open to

objections of a nature still more serious and important. A recovery of

the amount of Mr. Barwell's profits seems to be the only purpose which

they even professed to have in view. But your Committee are of opinion

that to preserve the reputation and dignity of the government of Bengal

was a much more important object, and ought to have been their first

consideration. The prosecution was not the pursuit of mean and

subordinate persons, who might with safety to the public interest remain

in their seats during such an inquiry into their conduct. It appears

very doubtful, whether, if there were grounds for such a prosecution, a

proceeding in Great Britain were not more politic than one in Bengal.

Such a prosecution ought not to have been ordered by the Directors, but

upon grounds that would have fully authorized the recall of the

gentleman in question. This prosecution, supposing it to have been

seriously undertaken, and to have succeeded, must have tended to weaken

the government, and to degrade it in the eyes of all India. On the other

hand, to intrust a man, armed as he was with all the powers of his

station, and indeed of the government, with the conduct of a prosecution

against himself, was altogether inconsistent and absurd. The same letter

in which they give these orders exhibits an example which sets the

inconsistency of their conduct in a stronger light, because the case is

somewhat of a similar nature, but infinitely less pressing in its

circumstances. Observing that the Board of Trade had commenced a

prosecution against Mr. William Barton, a member of that board, for

various acts of peculation committed by him, they say, "We must be of

opinion, that, as _prosecutions are actually carrying on against him by

our Board of Trade_, he is, during such prosecution at least, an

improper person to hold a seat _at that board_; and therefore we direct

that he be suspended from the Company's service until our further

pleasure concerning him be known." The principle laid down in this

instruction, even before their own opinion concerning Mr. Barton's case

was declared, and merely on the prosecution of others, serves to render

their conduct not very accountable in the case of Mr. Barwell. Mr.

Barton was in a subordinate situation, and his remaining or not

remaining in it was of little or no moment to the prosecution. Mr.

Barton was but one of seven; whereas Mr. Barwell was one of four, and,

with the Governor-General, was in effect the Supreme Council.

In the present state of power and patronage in India, and during the

relations which are permitted to subsist between the judges, the

prosecuting officers, and the Council-General, your Committee is very

doubtful whether the mode of prosecuting the highest members in the

Bengal government, before a court at Calcutta, could have been almost in

any case advisable.

It is possible that particular persons, in high judicial and political

situations, may, by force of an unusual strain of virtue, be placed far

above the influence of those circumstances which in ordinary cases are

known to make an impression on the human mind. But your Committee,

sensible that laws and public proceedings ought to be made for general

situations, and not for personal dispositions, are not inclined to have

any confidence in the effect of criminal proceedings, where no means are

provided for preventing a mutual connection, by dependencies, agencies,

and employments, between the parties who are to prosecute and to judge

and those who are to be prosecuted and to be tried.

Your Committee, in a former Report, have stated the consequences which

they apprehended from the dependency of the judges on the

Governor-General and Council of Bengal; and the House has entered into

their ideas upon this subject. Since that time it appears that Sir

Elijah Impey has accepted of the guardianship of Mr. Barwell's children,

and was the trustee for his affairs. There is no law to prevent this

sort of connection, and it is possible that it might not at all affect

the mind of that judge, or (upon his account) indirectly influence the

conduct of his brethren; but it must forcibly affect the minds of those

who have matter of complaint against government, and whose cause the

Court of Directors appear to espouse, in a country where the authority

of the Court of Directors has seldom been exerted but to be despised,

where the operation of laws is but very imperfectly understood, but

where men are acute, sagacious, and even suspicious of the effect of all

personal connections. Their suspicions, though perhaps not rightly

applied to every individual, will induce them to take indications from

the situations and connections of the prosecuting parties, as well as of

the judges. It cannot fail to be observed, that Mr. Naylor, the

Company's attorney, lived in Mr. Barwell's house; the late Mr. Bogle,

the Company's commissioner of lawsuits, owed his place to the patronage

of Mr. Hastings and Mr. Barwell, by whom the office was created for him;

and Sir John Day, the Company's advocate, who arrived in Bengal in

February, 1779, had not been four months in Calcutta, when Mr. Hastings,

Mr. Barwell, and Sir Eyre Coote doubled his salary, contrary to the

opinion of Mr. Francis and Mr. Wheler.

If the Directors are known to devolve the whole cognizance of the

offences charged on their servants so highly situated upon the Supreme

Court, an excuse will be furnished, if already it has not been

furnished, to the Directors for declining the use of their own proper

political power and authority in examining into and animadverting on the

conduct of their servants. Their true character, as strict masters and

vigilant governors, will merge in that of prosecutors. Their force and

energy will evaporate in tedious and intricate processes,--in lawsuits

which can never end, and which are to be carried on by the very

dependants of those who are under prosecution. On their part, these

servants will decline giving satisfaction to their masters, because they

are already before another tribunal; and thus, by shifting

responsibility from hand to hand, a confederacy to defeat the whole

spirit of the law, and to remove all real restraints on their actions,

may be in time formed between the servants, Directors, prosecutors, and

court. Of this great danger your Committee will take farther notice in

another place.

No notice whatever appears to have been taken of the Company's orders in

Bengal till the 11th of January, 1779, when Mr. Barwell moved, _that the

claim made upon him by the Court of Directors should be submitted to the

Company's lawyers, and that they should be perfectly instructed to

prosecute upon it_. In his minute of that date he says, "_that the state

of his health had long since rendered it necessary for him to return to

Europe_."

Your Committee observe that he continued in Bengal another year. He

says, "that he had hitherto waited for the arrival of Sir John Day, the

Company's advocate; but as the season was now far advanced, he wished to

bring the trial speedily to issue."

In this minute he retracts his original engagement to submit himself to

the judgment of the Court of Directors, "and to account to them for the

last shilling he had received": he says, "that no merit had been given

him for the offer; that a most unjustifiable advantage had been

attempted to be made of it, by first declining it and _descending to

abuse_, and then giving orders upon it as if it had been rejected, when

called upon by him in the person of his agent to bring home the charge

of delinquency."

Mr. Barwell's reflections on the proceedings of the Court of Directors

are not altogether clearly expressed; nor does it appear distinctly to

what facts he alludes. He asserts that a most unjustifiable advantage

had been attempted to be made of his offer. The fact is, the Court of

Directors have nowhere declined accepting it; on the contrary, they

caution the Governor-General and Council about the manner of receiving

the tender of the money which they expect him to make. They say nothing

of any call made on them by Mr. Barwell's agent in England; nor does it

appear to your Committee that they "have descended to abuse." They have

a right, and it is their duty, to express, in distinct and appropriated

terms, their sense of all blamable conduct in their servants.

So far as may be collected from the evidence of the Company's records,

Mr. Barwell's assertions do not appear well supported; but even if they

were more plausible, your Committee apprehend that he could not be

discharged from his solemn recorded promise to abide by the judgment of

the Court of Directors. Their judgment was declared by their resolution

to prosecute, which it depended upon himself to satisfy by making good

his engagement. To excuse his not complying with the Company's claims,

he says, "_that his compliance would be urged as a confession of

delinquency, and to proceed from conviction of his having usurped on the

rights of the Company_." Considerations of this nature might properly

have induced Mr. Barwell to stand upon his right in the first instance,

"_and to appeal_" (to use his own words) "_to the laws of his country,

in order to vindicate his fame_." But his performance could not have

more weight to infer delinquency than his promise. Your Committee think

his observation comes too late.

If he had stood a trial, when he first acknowledged the facts, and

submitted himself to the judgment of the Court of Directors, the suit

would have been carried on under the direction of General Clavering,

Colonel Monson, and Mr. Francis; whereas in the year 1779 his influence

at the board gave him the conduct of it himself. In an interval of four

years it may be presumed that great alterations might have happened in

the state of the evidence against him.

In the subsequent proceedings of the Governor-General and Council the

House will find that Mr. Barwell complained that his instances for

carrying on the prosecution were ineffectual, owing to the legal

difficulties and delays _urged by the Company's law officers_, which

your Committee do not find have yet been removed. As far as the latest

advices reach, no progress appears to have been made in the business. In

July, 1782, the Court of Directors found it necessary to order an

account of all suits against Europeans depending in the Supreme Court of

Judicature to be transmitted to them, and that no time should be lost in

bringing them to a determination.

SALTPETRE.

The next article of direct monopoly subservient to the Company's export

is saltpetre. This, as well as opium, is far the greater part the

produce of the province of Bahar. The difference between the management

and destination of the two articles has been this. Until the year 1782,

the opium has been sold in the country, and the produce of the sale laid

out in country merchandise for the Company's export. A great part of the

saltpetre is sent out in kind, and never has contributed to the interior

circulation and commerce of Bengal. It is managed by agency on the

Company's account. The price paid to the manufacturer is invariable.

Some of the larger undertakers receive advances to enable them to

prosecute their work; but as they are not always equally careful or

fortunate, it happens that large balances accumulate against them.

Orders have been sent from Calcutta from time to time to recover their

balances, with little or no success, but with great vexation to all

concerned in the manufacture. Sometimes they have imprisoned the failing

contractors in their own houses,--a severity which answers no useful

purpose. Such persons are so many hands detached from the improvement

and added to the burden of the country. They are persons of skill drawn

from the future supply of that monopoly in favor of which they are

prosecuted. In case of the death of the debtor, this rigorous demand

falls upon the ruined houses of widows and orphans, and may be easily

converted into a means either of cruel oppression or a mercenary

indulgence, according to the temper of the exactors. Instead of thus

having recourse to imprisonment, the old balance is sometimes deducted

from the current produce. This, in these circumstances, is a grievous

discouragement. People must be discouraged from entering into a

business, when, the commodity being fixed to one invariable standard and

confined to one market, the best success can be attended only with a

limited advantage, whilst a defective produce can never be compensated

by an augmented price. Accordingly, very little of these advances has

been recovered, and after much vexation the pursuit has generally been

abandoned. It is plain that there can be no life and vigor in any

business under a monopoly so constituted; nor can the true productive

resources of the country, in so large an article of its commerce, ever

come to be fully known.

The supply for the Company's demand in England has rarely fallen short

of two thousand tons, nor much exceeded two thousand five hundred. A

discretionary allowance of this commodity has been made to the French,

Dutch, and Danes, who purchase their allotted shares at some small

advance on the Company's price. The supply destined for the London

market is proportioned to the spare tonnage; and to accommodate that

tonnage, the saltpetre is sometimes sent to Madras and sometimes even to

Bombay, and that not unfrequently in vessels expressly employed for the

purpose.

Mr. Law, Chief of Patna, being examined on the effect of that monopoly,

delivered his opinion, that with regard to the Company's _trade_ the

monopoly was advantageous, but as sovereigns of the country they must be

losers by it. These two capacities in the Company are found in perpetual

contradiction. But much doubt may arise whether this monopoly will be

found advantageous to the Company either in the one capacity or the

other. The gross commodity monopolized for sale in London is procured

from the revenues in Bengal; the certain is given for the hazardous. The

loss of interest on the advances, sometimes the loss of the

principal,--the expense of carriage from Patna to Calcutta,--the various

loadings and unloadings, and insurance (which, though borne by the

Company, is still insurance),--the engagement for the Ordnance, limited

in price, and irregular in payment,--the charge of agency and

management, through all its gradations and successions,--when all these

are taken into consideration, it may be found that the gain of the

Company as traders will be far from compensating their loss as

sovereigns. A body like the East India Company can scarcely, in any

circumstance, hope to carry on the details of such a business, from its

commencement to its conclusion, with any degree of success. In the

subjoined estimate of profit and loss, the value of the commodity is

stated at its invoice price at Calcutta. But this affords no just

estimate of the whole effect of a dealing, where the Company's charge

commences in the first rudiments of the manufacture, and not at the

purchase at the place of sale and valuation: for they [there?] may be

heavy losses on the value at which the saltpetre is estimated, when,

shipped off on their account, without any appearance in the account; and

the inquiries of your Committee to find the charges on the saltpetre

previous to the shipping have been fruitless.

BRITISH GOVERNMENT IN INDIA.

The other link by which India is bound to Great Britain is the

government established there originally by the authority of the East

India Company, and afterwards modified by Parliament by the acts of 1773

and 1780. This system of government appears to your Committee to be at

least as much disordered, and as much perverted from every good purpose

for which lawful rule is established, as the trading system has been

from every just principle of commerce. Your Committee, in tracing the

causes of this disorder through its effects, have first considered the

government as it is constituted and managed within itself, beginning

with its most essential and fundamental part, the order and discipline

by which the supreme authority of this kingdom is maintained.

The British government in India being a subordinate and delegated power,

it ought to be considered as a fundamental principle in such a system,

that it is to be preserved in the strictest obedience to the government

at home. Administration in India, at an immense distance from the seat

of the supreme authority,--intrusted with the most extensive

powers,--liable to the greatest temptations,--possessing the amplest

means of abuse,--ruling over a people guarded by no distinct or

well-ascertained privileges, whose language, manners, and radical

prejudices render not only redress, but all complaint on their part, a

matter of extreme difficulty,--such an administration, it is evident,

never can be made subservient to the interests of Great Britain, or even

tolerable to the natives, but by the strictest rigor in exacting

obedience to the commands of the authority lawfully set over it.

But your Committee find that this principle has been for some years very

little attended to. Before the passing the act of 1773, the professed

purpose of which was to secure a better subordination in the Company's

servants, such was the firmness with which the Court of Directors

maintained their authority, that they displaced Governor Cartier,

confessedly a meritorious servant, for disobedience of orders, although

his case was not a great deal more than a question by whom the orders

were to be obeyed.[12] Yet the Directors were so sensible of the

necessity of a punctual and literal obedience, that, conceiving their

orders went to the parties who were to obey, as well as to the act to be

done, they proceeded with a strictness that, in all cases except that of

their peculiar government, might well be considered as rigorous. But in

proportion as the necessity of enforcing obedience grew stronger and

more urgent, and in proportion to the magnitude and importance of the

objects affected by disobedience, this rigor has been relaxed. Acts of

disobedience have not only grown frequent, but systematic; and they have

appeared in such instances, and are manifested in such a manner, as to

amount, in the Company's servants, to little less than absolute

independence, against which, on the part of the Directors, there is no

struggle, and hardly so much as a protest to preserve a claim.

Before your Committee proceed to offer to the House their remarks on the

most distinguished of these instances, the particulars of which they

have already reported, they deem it necessary to enter into some detail

of a transaction equally extraordinary and important, though not yet

brought into the view of Parliament, which appears to have laid the

foundation of the principal abuses that ensued, as well as to have given

strength and encouragement to those that existed. To this transaction,

and to the conclusions naturally deducible from it, your Committee

attribute that general spirit of disobedience and independence which has

since prevailed in the government of Bengal.

Your Committee find that in the year 1775 Mr. Lauchlan Macleane was sent

into England as agent to the Nabob of Arcot and to Mr. Hastings. The

conduct of Mr. Hastings, in assisting to extirpate, for a sum of money

to be paid to the Company, the innocent nation of the Rohillas, had

drawn upon him the censure of the Court of Directors, and the unanimous

censure of the Court of Proprietors. The former had even resolved to

prepare an application to his Majesty for Mr. Hastings's dismission.

Another General Court was called on this proceeding. Mr. Hastings was

then openly supported by a majority of the Court of Proprietors, who

professed to entertain a good opinion of his general ability and

rectitude of intention, notwithstanding the unanimous censure passed

upon him. In that censure they therefore seemed disposed to acquiesce,

without pushing the matter farther. But, as the offence was far from

trifling, and the condemnation of the measure recent, they did not

directly attack the resolution of the Directors to apply to his Majesty,

but voted in the ballot that it should be reconsidered. The business

therefore remained in suspense, or it rather seemed to be dropped, for

some months, when Mr. Macleane took a step of a nature not in the least

to be expected from the condition in which the cause of his principal

stood, which was apparently as favorable as the circumstances could

bear. Hitherto the support of Mr. Hastings in the General Court was only

by a majority; but if on application from the Directors he should be

removed, a mere majority would not have been sufficient for his

restoration. The door would have been barred against his return to the

Company's service by one of the strongest and most substantial clauses

in the Regulating Act of 1778. Mr. Macleane, probably to prevent the

manifest ill consequences of such a step, came forward with a letter to

the Court of Directors, declaring his provisional powers, and offering

on the part of Mr. Hastings an immediate resignation of his office.

On this occasion the Directors showed themselves extremely punctilious

with regard to Mr. Macleane's powers. They probably dreaded the charge

of becoming accomplices to an evasion of the act by which Mr. Hastings,

resigning the service, would escape the consequences attached by law to

a dismission; they therefore demanded Mr. Macleane's written authority.

This he declared he could not give into their hands, as the letter

contained other matters, of a nature extremely confidential, but that,

if they would appoint a committee of the Directors, he would readily

communicate to them the necessary parts of the letter, and give them

perfect satisfaction with regard to his authority. A deputation was

accordingly named, who reported that they had seen Mr. Hastings's

instructions, contained in a paper in _his own handwriting_, and that

the authority for the act now done by Mr. Macleane was clear and

sufficient. Mr. Vansittart, a very particular friend of Mr. Hastings,

and Mr. John Stewart, his most attached and confidential dependant,

attended on this occasion, and proved that directions perfectly

correspondent to this written authority had been given by Mr. Hastings

in their presence. By this means the powers were fully authenticated;

but the letter remained safe in Mr. Macleane's hands.

Nothing being now wanting to the satisfaction of the Directors, the

resignation was formally accepted. Mr. Wheler was named to fill the

vacancy, and presented for his Majesty's approbation, which was

received. The act was complete, and the office that Mr. Hastings had

resigned was legally filled. This proceeding was officially notified in

Bengal, and General Clavering, as senior in Council, was in course to

succeed to the office of Governor-General.

Mr. Hastings, to extricate himself from the difficulties into which this

resignation had brought him, had recourse to one of those unlooked-for

and hardy measures which characterize the whole of his administration.

He came to a resolution of disowning his agent, denying his letter, and

disavowing his friends. He insisted on continuing in the execution of

his office, and supported himself by such reasons as could be furnished

in such a cause. An open schism instantly divided the Council. General

Clavering claimed the office to which he ought to succeed, and Mr.

Francis adhered to him: Mr. Barwell stuck to Mr. Hastings. The two

parties assembled separately, and everything was running fast into a

confusion which suspended government, and might very probably have ended

in a civil war, had not the judges of the Supreme Court, on a reference

to them, settled the controversy by deciding that the resignation was an

invalid act, and that Mr. Hastings was still in the legal possession of

his place, which had been actually filled up in England. It was

extraordinary that the nullity of this resignation should not have been

discovered in England, where the act authorizing the resignation then

was, where the agent was personally present, where the witnesses were

examined, and where there was and could be no want of legal advice,

either on the part of the Company or of the crown. The judges took no

light matter upon them in superseding, and thereby condemning the

legality of his Majesty's appointment: for such it became by the royal

approbation.

On this determination, such as it was, the division in the meeting, but

not in the minds of the Council, ceased. General Clavering uniformly

opposed the conduct of Mr. Hastings to the end of his life. But Mr.

Hastings showed more temper under much greater provocations. In

disclaiming his agent, and in effect accusing him of an imposture the

most deeply injurious to his character and fortune, and of the grossest

forgery to support it, he was so very mild and indulgent as not to show

any active resentment against his unfaithful agent, nor to complain to

the Court of Directors. It was expected in Bengal that some strong

measures would have immediately been taken to preserve the just rights

of the king and of the Court of Directors; as this proceeding,

unaccompanied with the severest animadversion, manifestly struck a

decisive blow at the existence of the most essential powers of both. But

your Committee do not find that any measures whatever, such as the case

seemed to demand, were taken. The observations made by the Court of

Directors on what they call "_these extraordinary transactions_" are

just and well applied. They conclude with a declaration, "_that the

measures which it might be necessary for them to take, in order to

retrieve the honor of the Company, and to prevent the like abuse from

being practised in future, should have their most serious and earliest

consideration_"; and with this declaration they appear to have closed

the account, and to have dismissed the subject forever.

A sanction was hereby given to all future defiance of every authority in

this kingdom. Several other matters of complaint against Mr. Hastings,

particularly the charge of peculation, fell to the ground at the same

time. Opinions of counsel had been taken relative to a prosecution at

law upon this charge, from the then Attorney and the then

Solicitor-General and Mr. Dunning, (now the Lords Thurlow, Loughborough,

and Ashburton,) together with Mr. Adair (now Recorder of London). None

of them gave a positive opinion against the grounds of the prosecution.

The Attorney-General doubted on _the prudence_ of the proceedings, and

censured (as it well deserved) the ill statement of the case. Three of

them, Mr. Wedderburn, Mr. Dunning, and Mr. Adair, were clear in favor of

the prosecution. No prosecution, however, was had, and the Directors

contented themselves with censuring and admonishing Mr. Hastings.

With regard to the Supreme Council, the members who chose (for it was

choice only) to attend to the orders which were issued from the

languishing authority of the Directors continued to receive unprofitable

applauses and no support. Their correspondence was always filled with

complaints, the justice of which was always admitted by the Court of

Directors; but this admission of the existence of the evil showed only

the impotence of those who were to administer the remedy. The authority

of the Court of Directors, resisted with success in so capital an

instance as that of the resignation, was not likely to be respected in

any other. What influence it really had on the conduct of the Company's

servants may be collected from the facts that followed it.

The disobedience of Mr. Hastings has of late not only become uniform and

systematical in practice, but has been in principle, also, supported by

him, and by Mr. Barwell, late a member of the Supreme Council in Bengal,

and now a member of this House.

In the Consultation of the 20th of July, 1778, Mr. Barwell gives it as

his solemn and deliberate opinion, that, "while Mr. Hastings is in the

government, the respect and dignity of his station should be supported.

In these sentiments, I must decline an acquiescence in _any_ order which

has a _tendency_ to bring the government into disrepute. As the Company

have the means and power of forming their own administration in India,

they may at pleasure place whom they please at the head; but in my

opinion they are not authorized to treat a person in that post with

_indignity_."

By treating them with indignity (in the particular cases wherein they

have declined obedience to orders) they must mean those orders which

imply a censure on any part of their conduct, a reversal of any of their

proceedings, or, as Mr. Barwell expresses himself in words very

significant, in any orders that have a _tendency_ to bring _their_

government into _disrepute_. The amplitude of this latter description,

reserving to them the judgment of any orders which have so much as that

_tendency_, puts them in possession of a complete independence, an

independence including a despotic authority over the subordinates and

the country. The very means taken by the Directors for enforcing their

authority becomes, on this principle, a cause of further disobedience.

It is observable, that their principles of disobedience do not refer to

any local consideration, overlooked by the Directors, which might

supersede their orders, or to any change of circumstances, which might

render another course advisable, or even perhaps necessary,--but it

relates solely to their own interior feelings in matters relative to

themselves, and their opinion of their own dignity and reputation. It is

plain that they have wholly forgotten who they are, and what the nature

of their office is. Mr. Hastings and Mr. Barwell are servants of the

Company, and as such, by the duty inherent in that relation, as well as

by their special covenants, were obliged to yield obedience to the

orders of their masters. They have, as far as they were able, cancelled

all the bonds of this relation, and all the sanctions of these

covenants.

But in thus throwing off the authority of the Court of Directors, Mr.

Hastings and Mr. Barwell have thrown off the authority of the whole

legislative power of Great Britain; for, by the Regulating Act of the

thirteenth of his Majesty, they are expressly "directed and required to

pay due obedience to _all_ such orders as they shall receive from the

Court of Directors of the said United Company." Such is the declaration

of the law. But Mr. Barwell declares that he declines obedience to _any_

orders which he shall interpret to be indignities on a Governor-General.

To the clear injunctions of the legislature Mr. Hastings and Mr. Barwell

have thought proper to oppose their pretended reputation and dignity; as

if the chief honor of public ministers in every situation was not to

yield a cheerful obedience to the laws of their country. Your Committee,

to render evident to this House the general nature and tendency of this

pretended dignity, and to illustrate the real principles upon which they

appear to have acted, think it necessary to make observations on three

or four of the cases, already reported, of marked disobedience to

particular and special orders, on one of which the above extraordinary

doctrine was maintained.

These are the cases of Mr. Fowke, Mr. Bristow, and Mahomed Reza Khân. In

a few weeks after the death of Colonel Monson, Mr. Hastings having

obtained a majority in Council by his casting vote, Mr. Fowke and Mr.

Bristow were called from their respective offices of Residents at

Benares and Oude, places which have become the scenes of other

extraordinary operations under the conduct of Mr. Hastings in person.

For the recall of Mr. Bristow no reason was assigned. The reason

assigned for the proceeding with regard to Mr. Fowke was, that "the

purposes for which he was appointed were then fully accomplished."

An account of the removal of Mr. Fowke was communicated to the Court of

Directors in a letter of the 22d of December, 1776. On this

notification the Court had nothing to conclude, but that Mr. Hastings,

from a rigid pursuit of economy in the management of the Company's

affairs, had recalled a useless officer. But, without alleging any

variation whatsoever in the circumstances, in less than twenty days

after the order for the recall of Mr. Fowke, and _the very day after the

dispatch_ containing an account of the transaction, Mr. Hastings

recommended Mr. Graham to this very office, the end of which, he

declared to the Directors but the day before, had been fully

accomplished; and not thinking this sufficient, he appointed Mr. D.

Barwell as his assistant, at a salary of about four hundred pounds a

year. Against this extraordinary act General Clavering and Mr. Francis

entered a protest.

So early as the 6th of the following January the appointment of these

gentlemen was communicated in a letter to the Court of Directors,

without any sort of color, apology, or explanation. That court found a

servant removed from his station without complaint, contrary to the

tenor of one of their standing injunctions. They allow, however, and

with reason, that, "if it were possible to suppose that a saving, &c,

had been his motive, they would have approved his proceeding. But that

when immediately afterwards two persons, with _two_ salaries, had been

appointed to execute the office which had been filled with reputation by

Mr. Fowke alone, and that Mr. Graham enjoys all the emoluments annexed

to the office of Mr. Fowke,"--they properly conclude that Mr. Fowke was

removed without just cause, to make way for Mr. Graham, and strictly

enjoin that the former be reinstated in his office of Resident as

Post-master of Benares. In the same letter they assert their rights in

a tone of becoming firmness, and declare, that "on no account we can

permit our orders to be disobeyed or our authority disregarded."

It was now to be seen which of the parties was to give way. The orders

were clear and precise, and enforced by a strong declaration of the

resolution of the Court to make itself obeyed. Mr. Hastings fairly

joined issue upon this point with his masters, and, having disobeyed the

general instructions of the Company, determined to pay no obedience to

their special order.

On the 21st July, 1778, he moved, and succeeded in his proposition, that

the execution of these orders should be suspended. The reason he

assigned for this suspension lets in great light upon the true character

of all these proceedings: "That his consent to the recall of Mr. Graham

would be adequate to his own resignation of the service, as it would

inflict such a wound on _his authority and influence_ that he could not

maintain it."

If that had been his opinion, he ought to have resigned, and not

disobeyed: because it was not necessary that he should hold his office;

but it was necessary, that, whilst he hold it, he should obey his

superiors, and submit to the law. Much more truly was his conduct a

virtual resignation of his lawful office, and at the same time an

usurpation of a situation which did not belong to him, to hold a

subordinate office, and to refuse to act according to its duties. Had

his authority been self-originated, it would have been wounded by his

submission; but in this case the true nature of his authority was

affirmed, not injured, by his obedience, because it was a power derived

from others, and, by its essence, to be executed according to their

directions.

In this determined disobedience he was supported by Mr. Barwell, who on

that occasion delivered the dangerous doctrine to which your Committee

have lately adverted. Mr. Fowke, who had a most material interest in

this determination, applied by letter to be informed concerning it. An

answer was sent, acquainting him coldly, and without any reason

assigned, of what had been resolved relative to his office. This

communication was soon followed by another letter from Mr. Fowke, with

great submission and remarkable decency asserting his right to his

office under the authority of the Court of Directors, and for solid

reasons, grounded on the Company's express orders, praying to be

informed of the charge against him. This letter appears to have been

received by Mr. Hastings and Mr. Barwell very loftily. Mr. Hastings

said, "that such applications were irregular; that they are not

accountable to Mr. Fowke for their resolution respecting him. The

reasons for suspending the execution of the orders of the Court of

Directors contain _no charge, nor the slightest imputation of a charge_,

against Mr. Fowke; _but I see no reason why the board should condescend

to tell him so_." Accordingly, the proposition of Mr. Francis and Mr.

Wheler, to inform Mr. Fowke "that they had no reason to be dissatisfied

with his conduct," on the previous question was rejected.

By this resolution Mr. Hastings and Mr. Barwell discovered another

principle, and no less dangerous than the first: namely, that persons

deriving a valuable interest under the Company's orders, so far from

being heard in favor of their right, are not so much as to be informed

of the grounds on which they are deprived of it.

The arrival soon after of Sir Eyre Coote giving another opportunity of

trial, the question for obedience to the Company's orders was again[13]

brought on by Mr. Francis, and again received a negative. Sir Eyre

Coote, though present, and declaring, that, had he been at the original

consultation, he should have voted for the immediate execution of the

Company's orders, yet he was resolved to avoid what he called _any kind

of retrospect_. His neutrality gained the question in favor of this, the

third resolution for disobedience to orders.

The resolution in Bengal being thus decisively taken, it came to the

turn of the Court of Directors to act their part. They did act their

part exactly in their old manner: they had recourse to their old remedy

of repeating orders which had been disobeyed. The Directors declare to

Mr. Hastings and Mr. Barwell, though without any apparent reason, that

"they have read _with astonishment their formal resolution_ to suspend

the execution of their orders; that they shall take such measures as

appear necessary for _preserving the authority of the Court of

Directors_, and for preventing _such instances of direct and wilful_

disobedience in their servants in time to come." They then renew their

directions concerning Mr. Fowke. The event of this _sole_ measure taken

to preserve their authority, and to prevent instances of direct and

wilful disobedience, your Committee will state in its proper

place,--taking into consideration, for the present, the proceedings

relative to Mr. Bristow, and to Mahomed Reza Khân, which were

altogether in the same spirit; but as they were diversified in the

circumstances of disobedience, as well from the case of Mr. Fowke as

from one another, and as these circumstances tend to discover other

dangerous principles of abuse, and the general prostrate condition of

the authority of Parliament in Bengal, your Committee proceed first to

make some observations upon them.

The province of Oude, enlarged by the accession of several extensive and

once flourishing territories, that is, by the country of the Rohillas,

the district of Corah and Allahabad, and other provinces betwixt the

Ganges and Jumna, is under the nominal dominion of one of the princes of

the country, called Asoph ul Dowlah. But a body of English troops is

kept up in his country; and the greatest part of his revenues are, by

one description or another, substantially under the administration of

English subjects. He is to all purposes a dependent prince. The person

to be employed in his dominions to act for the Committee [Company?] was

therefore of little consequence in his capacity of negotiator; but he

was vested with a trust, great and critical, in all pecuniary affairs.

These provinces of dependence lie out of the system of the Company's

ordinary administration, and transactions there cannot be so readily

brought under the cognizance of the Court of Directors. This renders it

the more necessary that the Residents in such places should be persons

not disapproved of by the Court of Directors. They are to manage a

permanent interest, which is not, like a matter of political

negotiation, variable, and which, from circumstances, might possibly

excuse some degree of discretionary latitude in construing their orders.

During the lifetime of General Clavering and Colonel Monson, Mr.

Bristow was appointed to this Presidency, and that appointment, being

approved and confirmed by the Court of Directors, became in effect their

own. Mr. Bristow appears to have shown himself a man of talents and

activity. He had been principally concerned in the negotiations by which

the Company's interest in the higher provinces had been established; and

those services were considered by the Presidency of Calcutta as so

meritorious, that they voted him ten thousand pounds as a reward, with

many expressions of esteem and honor.

Mr. Bristow, however, was recalled by Mr. Hastings and Mr. Barwell, who

had then acquired the majority, without any complaint having been

assigned as the cause of his removal, and Mr. Middleton was sent in his

stead to reside at the capital of Oude. The Court of Directors, as soon

as they could be apprised of this extraordinary step, in their letter of

the 4th of July, 1777, express their strongest disapprobation of it:

they order Mr. Middleton to be recalled, and Mr. Bristow to be

reinstated in his office. In December, 1778, they repeat their order. Of

these repeated orders no notice was taken. Mr. Bristow, fatigued with

unsuccessful private applications, which met with a constant refusal,

did at length, on the 1st of May, 1780, address a letter to the board,

making his claim of right, entitling himself to his offices [office?]

under the authority of the Court of Directors, and complaining of the

hardships which he suffered by the delay in admitting him to the

exercise of it. This letter your Committee have inserted at large in the

Fifth Report, having found nothing whatsoever exceptionable in it,

although it seems to have excited the warmest resentment in Mr.

Hastings.

This claim of the party gave no new force to the order of the Directors,

which remained without any attention from the board from Mr. Bristow's

arrival until the 1st of May, and with as little from the 1st of May to

the 2nd of October following. On that day, Mr. Francis, after having

caused the repeated orders of the Court of Directors to be first read,

moved that Mr. Bristow should be reinstated in his office. This motion,

in itself just and proper in the highest degree, and in which no fault

could be found, but that it was not made more early, was received by Mr.

Hastings with the greatest marks of resentment and indignation. He

declares in his minute, that, "were the most determined adversary of the

British nation to possess, by whatever means, a share in the

administration, he could not devise a measure in _itself_ so pernicious,

or _time_ it so effectually for the _ruin_ of the British interests in

India." Then turning to the object of the motion, he says, "I will ask,

Who is Mr. Bristow, that a member of the administration should, at such

a time, hold him forth, as _an instrument for the degradation of the

first executive member of this government?_ What are the professed

objects of his appointment? What are the _merits_ and services, or what

the _qualifications_, which entitle him to such uncommon distinction? Is

it for his superior _integrity_, or from his eminent _abilities_, that

he is to be dignified at such hazard of every consideration that ought

to influence the members of this administration? Of the former (his

integrity) I know _no proofs_; I am sure it is not an evidence of it,

that he has been _enabled_ to make himself the principal in such a

_competition:_ and for the test of his abilities I appeal to the letter

which he has _dared_ to write to this board, and which I am ashamed to

say we have _suffered_. I desire that a copy of it may be inserted in

this day's proceedings, that it may stand before the eyes of every

member of the board, when he shall give his vote upon a question for

giving their confidence to a man, _their servant_, who has publicly

insulted _them, his masters_, and the members of the government to whom

he owes _his obedience_,--who, assuming an association with the Court of

Directors, and erecting himself into a _tribunal_, has _arraigned_ them

for _disobedience_ of orders, _passed judgment_ upon them, _and

condemned or acquitted them, as their magistrate or superior_. Let the

board consider, whether a man possessed of so _independent_ a spirit,

who has already shown a _contempt_ of their authority, who has shown

himself _so wretched an advocate for his own cause and negotiator for

his own interest_, is fit to be trusted with the guardianship of _their_

honor, the execution of _their_ measures, and as _their_ confidential

manager and negotiator with the princes of India. As the motion has been

unaccompanied by any reasons which should induce the board to pass their

acquiescence in it, I presume the motion which preceded it, for _reading

the orders of the Court of Directors, was intended to serve as an

argument for it, as well as an introduction to it_. The last of those

was dictated the 23rd December, 1778, almost two years past. They were

dictated at a time when, I am sorry to say, the Court of Directors were

in _the habit of casting reproach upon my conduct and heaping

indignities upon my station_."

Had the language and opinions which prevail throughout this part of the

minute, as well as in all the others to which your Committee refer, been

uttered suddenly and in a passion, however unprovoked, some sort of

apology might be made for the Governor-General. But when it was produced

five months after the supposed offence, and then delivered in writing,

which always implies the power of a greater degree of recollection and

self-command, it shows how deeply the principles of disobedience had

taken root in his mind, and of an assumption to himself of exorbitant

powers, which he chooses to distinguish by the title of "_his

prerogative_." In this also will be found an obscure hint of the cause

of his disobedience, which your Committee conceive to allude to the main

cause of the disorders in the government of India,--namely, an underhand

communication with Europe.

Mr. Hastings, by his confidence in the support derived from this source,

or from the habits of independent power, is carried to such a length as

to consider a motion to obey the Court of Directors as a degradation of

the executive government in his person. He looks upon a claim under that

authority, and a complaint that it has produced no effect, as a piece of

daring insolence which he is ashamed that the board has suffered. The

behavior which your Committee consider as so intemperate and despotic he

regards as a culpable degree of patience and forbearance. Major Scott,

his agent, enters so much into the principles of Mr. Hastings's conduct

as to tell your Committee that in his opinion Lord Clive would have sent

home Mr. Bristow a prisoner upon such an occasion. It is worthy of

remark, that, in the very same breath that Mr. Hastings so heavily

condemns a junior officer in the Company's service (not a _servant_ of

the Council, as he hazards to call him, but _their fellow-servant_) for

merely complaining of a supposed injury and requiring redress, he so far

forgets his own subordination as to reject the orders of the Court of

Directors even as an _argument_ in favor of appointing a person to an

office, to presume to censure _his_ undoubted masters, and to accuse

them of having been "in a habit of casting reproaches upon him, and

heaping indignities on _his_ station." And it is to be observed, that

this censure was not for the purpose of seeking or obtaining redress for

any injury, but appeared rather as a reason for refusing to obey their

lawful commands. It is plainly implied in that minute, that no servant

of the Company, in Mr. Bristow's rank, would dare to act in such a

manner, if he had not by indirect means obtained a premature fortune.

This alone is sufficient to show the situation of the Company's servants

in the subordinate situations, when the mere claim of a right, derived

from the sovereign legal power, becomes fatal not only to the objects

which they pursue, but deeply wounds that reputation both for ability

and integrity by which alone they are to be qualified for any other.

If anything could add to the disagreeable situation of those who are

submitted to an authority conducted on such principles, it is this: The

Company has ordered that no complaint shall be made in Europe against

any of the Council without being previously communicated to them: a

regulation formed upon grave reasons; and it was certainly made in

_favor_ of that board. But if a person, having ground of complaint

against the Council, by making use of the mode prescribed in favor of

that very Council, and by complaining to themselves, commits an offence

for which he may be justly punished, the Directors have not regulated

the mode of complaint, they have actually forbidden it; they have, on

that supposition, renounced their authority; and the whole system of

their officers is delivered over to the arbitrary will of a few of their

chief servants.

During the whole day of that deliberation things wore a decided face.

Mr. Hastings stood to his principles in their full extent, and seemed

resolved upon unqualified disobedience. But as the debate was adjourned

to the day following, time was given for expedients; and such an

expedient was hit upon by Mr. Hastings as will, no doubt, be unexpected

by the House; but it serves to throw new lights upon the motives of all

his struggles with the authority of the legislature.

The next day the Council met upon the adjournment. Then Mr. Hastings

proposed, as a compromise, a division of the object in question. One

half was to be surrendered to the authority of the Court of Directors,

the other was reserved for his dignity. But the choice he made of his

own share in this partition is very worthy of notice. He had taken his

_sole_ ground of objection against Mr. Bristow on the supposed ill

effect that such an appointment would have on the minds of the Indian

powers. He said, "that these powers could have no dependence on his

fulfilling his engagements, _or maintaining the faith of treaties_ which

he might offer for their acceptance, if they saw him treated with such

contempt." Mr. Bristow's appearing in a political character was the

_whole_ of his complaint; yet, when he comes to a voluntary distribution

of the duties of the office, he gives Mr. Bristow those very political

negotiations of which but the day before he had in such strong terms

declared him personally incapable, whose appointment he considered to be

fatal to those negotiations, and which he then spoke of as a measure in

_itself_ such as the bitterest adversary to Great Britain would have

proposed. But having thus yielded his whole ground of ostensible

objection, he reserved to his own appointment the entire management of

the pecuniary trust. Accordingly he named Mr. Bristow for the former,

and Mr. Middleton for the latter. On his own principles he ought to have

done the very reverse. On every justifiable principle he ought to have

done so; for a servant who for a long time resists the orders of his

masters, and when he reluctantly gives way obeys them by halves, ought

to be remarkably careful to make his actions correspond with his words,

and to put himself out of all suspicion with regard to the purity of his

motives. It was possible that the political reasons, which were solely

assigned against Mr. Bristow's appointment, might have been the real

motives of Mr. Hastings's opposition. But these he totally abandons, and

holds fast to the pecuniary department. Now, as it is notorious that

most of the abuses of India grow out of money-dealing, it was peculiarly

unfit for a servant, delicate with regard to his reputation, to require

a _personal_ and confidential agent in a situation merely official, in

which secrecy and personal connections could be of no possible use, and

could only serve to excite distrust. Matters of account cannot be made

too public; and it is not the most confidential agent, but the most

responsible, who is the fittest for the management of pecuniary trusts.

That man was the fittest at once to do the duty, and to remove all

suspicions from the Governor-General's character, whom, by not being of

his appointment, he could not be supposed to favor for private purposes,

who must naturally stand in awe of his inspection, and whose misconduct

could not possibly be imputable to him. Such an agency in a pecuniary

trust was the very last on which Mr. Hastings ought to have risked his

disobedience to the orders of the Direction,--or, what is even worse for

his motives, a direct contradiction to all the principles upon which he

had attempted to justify that bold measure.

The conduct of Mr. Hastings in the affair of Mahomed Reza Khân was an

act of disobedience of the same character, but wrought by other

instruments. When the Duanné (or universal perception, and management of

the revenues) of Bengal was acquired to the Company, together with the

command of the army, the Nabob, or governor, naturally fell into the

rank rather of a subject than that even of a dependent prince. Yet the

preservation of such a power in such a degree of subordination, with the

criminal jurisdiction, and the care of the public order annexed to it,

was a wise and laudable policy. It preserved a portion of the government

in the hands of the natives; it kept them in respect; it rendered them

quiet on the change; and it prevented that vast kingdom from wearing the

dangerous appearance, and still more from sinking into the terrible

state, of a country of conquest. Your Committee has already reported the

manner in which the Company (it must be allowed, upon pretences that

will not bear the slightest examination) diverted from its purposes a

great part of the revenues appropriated to the country government; but

they were very properly anxious that what remained should be well

administered. In the lifetime of General Clavering and Colonel Monson,

Mahomed Reza Khân, a man of rank among the natives, was judged by them

the fittest person to conduct the affairs of the Nabob, as his Naib, or

deputy: an office well known in the ancient constitution of these

provinces, at a time when the principal magistrates, by nature and

situation, were more efficient. This appointment was highly approved,

and in consequence confirmed, by the Court of Directors. Mr. Hastings

and Mr. Barwell, however, thought proper to remove him. To the authority

of the Court of Directors they opposed the request of the Nabob, stating

that he was arrived at the common age of maturity, and stood _in no need

of a deputy to manage his affairs_. On former occasions Mr. Hastings

conceived a very low opinion of the condition of the person whom he thus

set up against the authority of his masters. "On a former occasion," as

the Directors tell him, "and to serve a very different purpose, he had

not scrupled to declare it as visible as the sun that the Nabob was a

mere pageant, without even _the shadow of authority_." But on this

occasion he became more substantial. Mr. Hastings and Mr. Barwell

yielded to his representation that a deputy was not necessary, and

accordingly Mahomed Reza Khân was removed from his office.

However, lest any one should so far mistrust their understanding as to

conceive them the dupes of this pretext, they who had disobeyed the

Company's orders under color that _no deputy was necessary_ immediately

appoint another deputy. This independent prince, who, as Mr. Hastings

said, "had an incontestable right to his situation, and that it was his

by inheritance," suddenly shrunk into his old state of insignificance,

and was even looked upon in so low a light as to receive a severe

reprimand from Mr. Hastings for _interposing_ in the duties of his (the

deputy's) office.

The Company's orders, censuring this transaction in the strongest terms,

and ordering Mahomed Reza Khân to be immediately restored to the office

of Naib Subahdar, were received in Calcutta in November, 1779. Mr.

Hastings acted on this with the firmness which he had shown on other

occasions; but in his principles he went further. Thinking himself

assured of some extraordinary support, suitable to the open and

determined defiance with which he was resolved to oppose the lawful

authority of his superiors, and to exercise a despotic power, he no

longer adhered to Mr. Barwell's distinction of the orders which had a

tendency to bring his government into disrepute. This distinction

afforded sufficient latitude to disobedience; but here he disdained all

sorts of colors and distinctions. He directly set up an independent

right to administer the government according to his pleasure; and he

went so far as to bottom his claim to act independently of the Court of

Directors on the very statute which commanded his obedience to them.

He declared roundly, "that he should _not_ yield to the authority of the

Court of Directors in _any_ instance in which it should require his

concession of the rights which he held under an act of Parliament." It

is too clear to stand in need of proof, that he neither did or could

hold any authority that was not subject, in every particle of it, and in

every instance in which it could be exercised, to the orders of the

Court of Directors.

He therefore refused to back the Company's orders with any requisition

from himself to the Nabob, but merely suffered them to be transmitted to

him, leaving it to him to do just as he thought proper. The Nabob, who

called Mr. Hastings "his patron, and declared he would never do anything

without his consent and approbation," perfectly understood this kind of

signification. For the second time the Nabob recovered from his trance

of pageantry and insignificance, and collected courage enough to write

to the Council in these terms: "I administer the affairs of the Nizamut,

(the government,) which are the affairs of _my own family_, by _my own

authority_, and shall do so; and I never can _on any account agree_ to

the appointment of the Nabob Mahomed Reza Khân to the Naib Subahship."

Here was a second independent power in Bengal. This answer from that

power proved as satisfactory as it was resolute. No further notice was

taken of the orders of the Court of Directors, and Mahomed Reza Khân

found their protection much more of a shadow than the pageant of power

of which he aspired to be the representative.

This act of disobedience differs from the others in one particular

which, in the opinion of your Committee, rather aggravates than

extenuates the offence. In the others, Messrs. Hastings and Barwell took

the responsibility on themselves; here they held up the pretext of the

country government. However, they obtained thereby one of the objects

which they appear to have systematically pursued. As they had in the

other instances shown to the British servants of the Company that the

Directors were not able to protect them, here the same lesson was taught

to the natives. Whilst the matter lay between the native power and the

servants, the former was considered by Mr. Hastings in the most

contemptible light. When the question was between the servants and the

Court of Directors, the native power was asserted to be a self-derived,

hereditary, uncontrollable authority, and encouraged to act as such.

In this manner the authority of the British legislature was at that time

treated with every mark of reprobation and contempt. But soon after a

most unexpected change took place, by which the persons in whose favor

the Court of Directors had in vain interposed obtained specific objects

which had been refused to them; things were, however, so well contrived,

that legal authority was nearly as much affronted by the apparent

compliance with their orders as by the real resistance they had before

met with. After long and violent controversies, an agreement took place

between Mr. Hastings and Mr. Francis. It appears that Mr. Hastings,

embarrassed with the complicated wars and ruinous expenses into which

his measures had brought him, began to think of procuring peace at home.

The agreement originated in a conversation held on Christmas-Day, 1779,

between Major Scott, then aide-de-camp, and now agent, to Mr. Hastings,

and Mr. Ducarrel, a gentleman high in the Company's service at Calcutta.

Mr. Scott, in consequence of this conversation, was authorized to make

overtures to Mr. Francis through Mr. Ducarrel: to declare Mr. Hastings

tired of controversy; expressing his wish to have the Mahratta war

entirely left to him; that there were certain points _he could not give

up_; that he could _not_ (for reasons he then assigned) _submit_ to the

restoration of Mr. Fowke, Mahomed Reza Khân, and Mr. Bristow; that _he

had not the smallest personal objection to them_, and would willingly

provide for them in any other line. Mr. Francis in this treaty insisted

on those very points which Mr. Hastings declared he could never give up,

and that his conditions were the Company's orders,--that is, the

restoration of the persons whom they had directed to be restored. The

event of this negotiation was, that Mr. Hastings at length submitted to

Mr. Francis, and that Mr. Fowke and Mahomed Reza Khân were reinstated in

their situations.

Your Committee observe on this part of the transaction of Mr. Hastings,

that as long as the question stood upon his obedience to his lawful

superiors, so long he considered the restoration of these persons as a

gross indignity, the submitting to which would destroy all his credit

and influence in the country; but when it was to accommodate his own

occasions in a treaty with a fellow-servant, all these difficulties

instantly vanish, and he finds it perfectly consistent with his dignity,

credit, and influence, to do for Mr. Francis what he had refused to the

strict and reiterated injunctions of the Court of Directors.

Tranquillity was, however, for a time restored by this measure, though

it did not continue long. In about three months an occasion occurred in

which Mr. Francis gave some opposition to a measure proposed by Mr.

Hastings, which brought on a duel, upon the mischievous effects of which

your Committee have already made their observations.

The departure of Mr. Francis soon after for Europe opened a new scene,

and gave rise to a third revolution. Lest the arrangement with the

servants of the Company should have the least appearance of being

mistaken for obedience to their superiors, Mr. Francis was little more

than a month gone, when Mr. Fowke was again recalled from Benares, _and

Mr. Bristow soon after from Oude_. In these measures Mr. Hastings has

combined the principles of disobedience which he had used in all the

cases hitherto stated. In his Minute of Consultation on this recall he

refers to his former Minutes; and he adds, that he has "a recent motive

in the necessity of removing any circumstance which may contribute to

lessen his _influence_ in the effect of any negotiations in which he may

be engaged in the prosecution of his intended visit to Lucknow." He here

reverts to his old plea of preserving his influence; not content with

this, as in the case of Mahomed Reza Khân he had called in the aid of

the Nabob of Bengal, he here calls in the aid of the Nabob of Oude, who,

on reasons exactly tallying with those given by Mr. Hastings, desires

that Mr. Bristow may be removed. The true weight of these requisitions

will appear, if not sufficiently apparent from the known situation of

the parties, by the following extract of a letter from this Nabob of

Oude to his agent at Calcutta, desiring him to acquaint Mr. Hastings,

that, "if it is proper, I will write to the king [of Great Britain], and

the vizier [one of his Majesty's ministers], and the chief of the

Company, _in such a manner as he shall direct, and in the words that he

shall order_, that Mr. Bristow's views may be thwarted there." There is

no doubt of the entire coöperation of the Nabob Asoph ul Dowlah in all

the designs of Mr. Hastings, and in thwarting the views of any persons

who place their reliance on the authority of this kingdom.

As usual, the Court of Directors appear in their proper order in the

procession. After this third act of disobedience with regard to the

same person and the same office, and after calling the proceedings

unwarrantable, "_in order to vindicate and uphold their own authority,

and thinking it a duty incumbent on them to maintain the authority of

the Court of Directors_," they again order Mr. Bristow to be reinstated,

and Mr. Middleton to be recalled: in this circle the whole moves with

great regularity.

The extraordinary operations of Mr. Hastings, that soon after followed

in every department which was the subject of all these acts of

disobedience, have made them appear in a light peculiarly unpropitious

to his cause. It is but too probable, from his own accounts, that he

meditated some strong measure, both at Benares and at Oude, at the very

time of the removal of those officers. He declares he knew that his

conduct in those places was such as to lie very open to malicious

representations; he must have been sensible that he was open to such

representations from the beginning; he was therefore impelled by every

motive which ought to influence a man of sense by no means to disturb

the order which he had last established.

Of this, however, he took no care; but he was not so inattentive to the

satisfaction of the sufferers, either in point of honor or of interest.

This was most strongly marked in the case of Mr. Fowke. His reparation

to that gentleman, in point of honor, is as full as possible. Mr.

Hastings "declared, that he approved his character and his conduct in

office, and believed that he might _depend_ upon _his exact and literal

obedience and fidelity_ in the execution of the functions annexed to

it." Such is the character of the man whom Mr. Hastings a second time

removed from the office to which he told the Court of Directors, in his

letter of the 3rd of March, 1780, he had appointed him in conformity to

their orders. On the 14th of January, 1781, he again finds it an

indispensable obligation in him to exercise powers "_inherent_ in the

constitution of his government." On this principle he claimed "the right

of nominating the agent of his own choice to the Residence of Benares;

that it is a representative situation: that, speaking for myself

_alone_, it may be _sufficient_ to say, that Mr. Francis Fowke is not

_my_ agent; _that I cannot give him my confidence_; that, while he

continues at Benares, he stands as a screen between the Rajah and this

government, instead of an instrument of control; that the Rajah himself,

and every chief in Hindostan, will regard it as the pledge and

foundation of his independence." Here Mr. Hastings has got back to his

old principles, where he takes post as on strong ground. This he

declares "to be his objection to Mr. Fowke, and that it is insuperable."

The very line before this paragraph he writes of this person, to whom he

_could_ not give his _confidence_, that "he believed he might _depend_

upon _his fidelity_, and his exact and literal obedience." Mr. Scott,

who is authorized to defend Mr. Hastings, supported the same principles

before your Committee by a comparison that avowedly reduces the Court of

Directors to the state of a party against their servants. He declared,

that, in his opinion, "it would be just as _absurd_ to _deprive him_ of

the power of nominating his ambassador at Benares as it would be to

force on _the ministry_ of this country an ambassador from _the

opposition_." Such is the opinion entertained in Bengal, and that but

too effectually realized, of the relation between the principal servants

of the Company and the Court of Directors.

So far the reparation, in point of honor, to Mr. Fowke was complete. The

reparation in point of interest your Committee do not find to have been

equally satisfactory; but they do find it to be of the most

extraordinary nature, and of the most mischievous example. Mr. Fowke had

been deprived of a place of rank and honor,--the place of a public

_Vackeel_, or representative. The recompense provided for him is a

succession to a contract. Mr. Hastings moved, that, on the expiration of

Colonel Morgan's contract, he should be appointed agent to all the boats

employed for the military service of that establishment, with a

commission of _fifteen per cent on all disbursements in that

office_,--permitting Mr. Fowke, at the same time, to draw his allowance

of an hundred pounds a month, as Resident, until the expiration of the

contract, and for three months after.

Mr. Hastings is himself struck, as every one must be, with so

extraordinary a proceeding, the principle of which, he observes, "is

liable to _one_ material objection." That one is material indeed; for,

no limit being laid down for the expense in which the percentage is to

arise, it is the direct interest of the person employed to make his

department as expensive as possible. To this Mr. Hastings answers, that

"he is convinced by experience it will be better performed"; and yet he

immediately after subjoins, "This _defect_ can _only_ be corrected by

the probity of the person intrusted with so important a charge; and I am

willing to have it understood, as a proof of _the confidence I repose in

Mr. Fowke_, that I have proposed his appointment, in opposition _to a

general principle_, to a trust so constituted."

In the beginning of this very Minute of Consultation, Mr. Hastings

removes Mr. Fowke from the Residency of Benares because "he cannot give

him his confidence"; and yet, before the pen is out of his hand, he

violates one of the soundest general principles in the whole system of

dealing, in order to give a proof of the confidence he reposes in that

gentleman. This apparent gross contradiction is to be reconciled but by

one way,--which is, that confidence with Mr. Hastings comes and goes

with his opposition to legal authority. Where that authority recommends

any person, his confidence in him vanishes; but to show that it is the

authority, and not the person, he opposes, when that is out of sight,

there is no rule so sacred which is not to be violated to manifest his

real esteem and perfect trust in the person whom he has rejected.

However, by overturning general principles to compliment Mr. Fowke's

integrity, he does all in his power to corrupt it; at the same time he

establishes an example that must either subject all future dealings to

the same pernicious clause, or which, being omitted, must become a

strong implied charge on the integrity of those who shall hereafter be

excluded from a trust so constituted.

It is not foreign to the object of your Committee, in this part of their

observations, which relates to the obedience to orders, to remark upon

the manner in which the orders of the Court of Directors with regard to

this kind of dealing in contracts are observed. These orders relate to

contracts; and they contain two standing regulations.

1st, That all contracts shall be publicly advertised, and that the most

reasonable proposals shall be accepted.

2ndly, That two contracts, those of provisions and for carriage

bullocks, shall be only annual.

These orders are undoubtedly some correctives to the abuses which may

arise in this very critical article of public dealing. But the House

will remark, that, if the business usually carried on by contracts can

be converted at pleasure into agencies, like that of Mr. Fowke, all

these regulations perish of course, and there is no direction whatsoever

for restraining the most prodigal and corrupt bargains for the public.

Your Committee have inquired into the observance of these necessary

regulations, and they find that they have, like the rest, been entirely

contemned, and contemned with entire impunity. After the period of

Colonel Monson's death, and Mr. Hastings and Mr. Barwell obtaining the

lead in the Council, the contracts were disposed of without at all

advertising for proposals. Those in 1777 were given for three years; and

the gentlemen in question growing by habit and encouragement into more

boldness, in 1779 the contracts were disposed of for five years: and

this they did at the eve of the expiration of their own appointment to

the government. This increase in the length of the contracts, though

contrary to orders, might have admitted some excuse, if it had been

made, even in appearance, the means of lessening the expense. But the

advantages allowed to the contractors, instead of being diminished, were

enlarged, and in a manner far beyond the proportion of the enlargement

of terms. Of this abuse and contempt of orders a judgment may be formed

by the single contract for supplying the army with draught and carriage

bullocks. As it stood at the expiration of the contract in 1779, the

expense of that service was about one thousand three hundred pounds a

month. By the new contract, given away in September of that year, the

service was raised to the enormous sum of near six thousand pounds a

month. The monthly increase, therefore, being four thousand seven

hundred pounds, it constitutes a total increase of charges for the

Company, in the five years of the contract, of no less a sum than two

hundred and thirty-five thousand pounds. Now, as the former contract

was, without doubt, sufficiently advantageous, a judgment may be formed

of the extravagance of the present. The terms, indeed, pass the bounds

of all allowance for negligence and ignorance of office.

The case of Mr. Belli's contract for supplying provisions to the Fort is

of the same description; and what exceedingly increases the suspicion

against this profusion, in contracts made in direct violation of orders,

is, that they are always found to be given in favor of persons closely

connected with Mr. Hastings in his family, or even in his actual

service.

The principles upon which Mr. Hastings and Mr. Barwell justify this

disobedience, if admitted, reduce the Company's government, so far as it

regards the Supreme Council, to a mere patronage,--to a mere power of

nominating persons to or removing them from an authority which, is not

only despotic with regard to those who are subordinate to it, but in all

its acts entirely independent of the legal power which is nominally

superior. These are principles directly leading to the destruction of

the Company's government. A correspondent practice being established,

(as in this case of contracts, as well as others, it has been,) the

means are furnished of effectuating this purpose: for the common

superior, the Company, having no power to regulate or to support their

own appointments, nor to remove those whom they wish to remove, nor to

prevent the contracts from being made use of against their interest, all

the English in Bengal must naturally look to the next in authority; they

must depend upon, follow, and attach themselves to him solely; and thus

a party may be formed of the whole system of civil and military servants

for the support of the subordinate, and defiance of the supreme power.

Your Committee being led to attend to the abuse of contracts, which are

given upon principles fatal to the subordination of the service, and in

defiance of orders, revert to the disobedience of orders in the case of

Mahomed Reza Khân.

This transaction is of a piece with those that preceded it. On the 6th

of July, 1781, Mr. Hastings announced to the board the arrival of a

messenger and introduced a requisition from the young Nabob Mobarek ul

Dowlah, "that he might be _permitted to dispose of his own stipend,

without being made to depend on the will of another_." In favor of this

requisition Mr. Hastings urged various arguments:--that the Nabob could

no longer be deemed a minor;--that he was twenty-six years of age, and

father of many children;--that his understanding was much improved _of

late_ by an attention to his education;--that these circumstances gave

him a claim to the uncontrolled exercise of domestic authority; and it

might reasonably be supposed that he would pay a greater regard to a

just economy in his own family than had been observed by those who were

aliens to it. For these reasons Mr. Hastings recommended to the board

that Mahomed Reza Khân should be immediately divested of the office of

superintendent of the Nabob's household, _and that the Nabob Mobarek ul

Dowlah should be intrusted with the exclusive and entire receipts and

disbursements of his stipend, and the uncontrolled management and

regulation of his household_. Thus far your Committee are of opinion,

that the conclusion corresponds with the premises; for, supposing the

fact to be established or admitted, that the Nabob, in point of age,

capacity, and judgment, was qualified to act for himself, it seems

reasonable that the management of his domestic affairs should not be

withheld from him. On this part of the proceeding your Committee will

only observe, that, if it were strictly true that the Nabob's

understanding had been much improved _of late_ by an attention to his

education, (which seems an extraordinary way of describing the

qualifications of a man of six-and-twenty, the father of many children,)

the merit of such improvement must be attributed to Mahomed Reza Khân,

who was the only person of rank and character connected with him, or who

could be supposed to have any influence over him. Mr. Hastings himself

reproaches the Nabob with _raising mean men to be his companions_, and

tells him plainly, _that some persons, both of bad character and base

origin, had found the means of insinuating themselves into his company

and constant fellowship_. In such society it is not likely that either

the Nabob's morals or his understanding could have been _much improved_;

nor could it be deemed prudent to leave him without any check upon his

conduct. Mr. Hastings's opinion on this point may be collected from what

he did, but by no means from what he said, on the occasion.

The House will naturally expect to find that the Nabob's request was

granted, and that the resolution of the board was conformable to the

terms of Mr. Hastings's recommendation. Yet the fact is directly the

reverse. Mr. Hastings, after advising _that the Nabob should be

intrusted with the exclusive and entire receipts and disbursements of

his stipend_, immediately corrects that advice, _being aware that so

sudden and unlimited a disposal of a large revenue might at first

encourage a spirit of dissipation in the Nabob_,--and reserves to

_himself_ a power of establishing, _with the Nabob's consent_, such a

plan for the regulation and equal distribution of the Nabob's expenses

_as should be adapted to the dissimilar appearances of preserving his

interests and his independence at the same time_. On the same

complicated principles the subsequent resolution of the board professes

to allow the Nabob the management of his stipend and expenses,--with _an

hope_, however, (which, considering the relative situation of the

parties, could be nothing less than an injunction,) that he would submit

to such a plan _as should be agreed on between him_ and the

Governor-General.

The drift of these contradictions is sufficiently apparent. Mahomed Reza

Khân was to be divested of his office at all events, and the management

of the Nabob's stipend committed to other hands. To accomplish the

first, the Nabob is said to be "now arrived at that time of life when a

man may be supposed capable, _if ever_, of managing his own concerns."

When this principle has answered the momentary purpose for which it was

produced, we find it immediately discarded, and an opposite resolution

formed on an opposite principle, viz., that he shall _not_ have the

management of his own concerns, _in consideration of his want of

experience_.

Mr. Hastings, on his arrival at Moorshedabad, gives Mr. Wheler an

account of his interview with the Nabob, and of the Nabob's implicit

submission to his advice. The principal, if not the sole, object of the

whole operation appears from the result of it. Sir John D'Oyly, a

gentleman in whom Mr. Hastings places particular confidence, succeeds to

the office of Mahomed Reza Khân, and to the same control over the

Nabob's expenses. Into the hands of this gentleman the Nabob's stipend

was _to be immediately paid, as every intermediate channel would be an

unavoidable cause of delay_; and to _his_ advice the Nabob was required

to give the same attention as if it were given by Mr. Hastings himself.

One of the conditions prescribed to the Nabob was, that he should admit

no Englishman to his presence without previously consulting Sir John

D'Oyly; _and he must forbid any person of that nation to be intruded

without his introduction_. On these arrangements it need only be

observed, that a measure which sets out with professing to relieve the

Nabob from a state of _perpetual pupilage_ concludes with delivering not

only his fortune, but his person, to the custody of a particular friend

of Mr. Hastings.

The instructions given to the Nabob contain other passages that merit

attention. In one place Mr. Hastings tells him, "You have offered to

give up the sum of four lacs of rupees to be allowed the free use of the

remainder; but this we have refused." In another he says, that, "_as

many matters will occur which cannot be so easily explained by letter as

by conversation_, I desire that you will on such occasions give your

orders to Sir John D'Oyly respecting such points as you may desire to

have imparted to _me_." The offer alluded to in the first passage does

not appear in the Nabob's letters, therefore must have been in

conversation, and declined by Mr. Hastings without consulting his

colleague. A refusal of it might have been proper; but it supposes a

degree of incapacity in the Nabob not to be reconciled to the principles

on which Mahomed Reza Khân was removed from the management of his

affairs. Of the matters alluded to in the second, and which, it is said,

_could not be so easily explained by letters as in conversation_, no

explanation is given. Your Committee will therefore leave them, as Mr.

Hastings has done, to the opinion of the House.

As soon as the Nabob's requisition was communicated to the board, it was

moved and resolved that Mahomed Reza Khân should be divested of his

office; and the House have seen in what manner it was disposed of. The

Nabob had stated various complaints against him:--that he had dismissed

the old established servants of the Nizamut, and filled their places

with his own dependants;--that he had _regularly received_ the stipend

of the Nizamut from the Company, yet had kept the Nabob involved in debt

and distress, and exposed to the clamors of his creditors, and sometimes

even in want of a dinner. All these complaints were recorded at large in

the proceedings of the Council; but it does not appear that they were

ever communicated to Mahomed Reza Khân, or that he was ever called upon,

in any shape, to answer them. This circumstance inclines your Committee

to believe that all of these charges were groundless,--especially as it

appears on the face of the proceedings, that the chief of them were not

well founded. Mr. Hastings, in his letter to Mr. Wheler, urges the

absolute necessity of the monthly payment of the Nabob's stipend _being

regularly made_, and says, that, to relieve the Nabob's present wants,

he had directed the Resident to raise an immediate supply on the credit

of the Company, to be repaid from the first receipts. From hence your

Committee conclude that the monthly payments had _not_ been regularly

made, and that whatever distresses the Nabob might have suffered must

have been owing to the Governor-General and Council, not to Mahomed Reza

Khân, who, for aught that appears to the contrary, paid away the stipend

as fast as he received it. Had it been otherwise, that is, if Mahomed

Reza Khân had reserved a balance of the Nabob's money in his hands, he

should, and undoubtedly he would, have been called upon to pay it in;

and then there would have been no necessity for raising an immediate

supply by other means.

The transaction, on the whole, speaks very sufficiently for itself. It

is a gross instance of repeated disobedience to repeated orders; and it

is rendered particularly offensive to the authority of the Court of

Directors by the frivolous and contradictory reasons assigned for it.

But whether the Nabob's requisition was reasonable or not, the

Governor-General and Council were precluded by a special instruction

from complying with it. The Directors, in their letter of the 14th of

February, 1779, declare, that a resolution of Council, (taken by Mr.

Francis and Mr. Wheler, in the absence of Mr. Barwell,) viz., "that the

Nabob's letter should be referred to _them_ for _their_ decision, and

that no resolution should be taken in Bengal on his requisitions without

their special orders and instructions," was very proper. They prudently

reserved to themselves the right of deciding on such questions; but

they reserved it to no purpose. In England the authority is purely

formal. In Bengal the power is positive and real. When they clash, their

opposition serves only to degrade the authority that ought to

predominate, and to exalt the power that ought to be dependent.

* * * * *

Since the closing of the above Report, many material papers have arrived

from India, and have been laid before your Committee. That which they

think it most immediately necessary to annex to the Appendix to this

Report is the resolution of the Council-General to allow to the members

of the Board of Trade resident in Calcutta a charge of five per cent on

the sale in England of the investment formed upon their second plan,

namely, that plan which had been communicated to Lord Macartney. The

investment on this plan is stated to be raised from 800,000_l._ to

1,000,000_l._ sterling.

It is on all accounts a very memorable transaction, and tends to bring

on a heavy burden, operating in the nature of a tax laid by their own

authority on the goods of their masters in England. If such a

compensation to the Board of Trade was necessary on account of their

engagement to take no further (that is to say, no unlawful) emolument,

it implies that the practice of making such unlawful emolument had

formerly existed; and your Committee think it very extraordinary that

the first notice the Company had received of such a practice should be

in taxing them for a compensation for a partial abolition of it, secured

on the parole of honor of those very persons who are supposed to have

been guilty of this unjustifiable conduct. Your Committee consider this

engagement, if kept, as only a partial abolition of the implied corrupt

practice: because no part of the compensation is given to the members of

the Board of Trade who reside at the several factories, though their

means of abuse are without all comparison greater; and if the corruption

was supposed so extensive as to be bought off at that price where the

means were fewer, the House will judge how far the tax has purchased off

the evil.

FOOTNOTES:

[1] See the Secret Committee's Reports on the Mahratta War.

[2] Vide Secret Committee Reports.

[3] Vide Select Committee Reports, 1781

[4] The sale, to the amount of about one hundred thousand pounds

annually, of the export from Great Britain ought to be deducted from

this million.

[5] Estimate of the Sale Amount and Net Proceeds in England of the

Cargoes to be sent from Bengal, agreeable to the Plan received by Letter

dated the 8th April, 1782.

This calculation supposes the eighty lac investments will be equal to

the tonnage of five ships.

[B] 2. To custom £320,000 |[A] 1. By sale amount of

[C] 3. " freight 200,000 | piece-goods and

[D] 4. " 5 per cent duty on | raw silk £1,300,000

£1,300,000 65,000 | Discount 61/2 per

[E] 5. " 2 do. warehouse | cent allowed the

room do. 26,000 | buyers 84,500

7 do. commission |

on £604,500 42,315 |

---------- |

£653,315 |

[F] 6. " Balance 562,185 |

---------- | ----------

£1,215,500 | £1,215,500

[A] 1. The sale amount is computed on an average of the sales of the two

last years' imports.

[B] 2. The custom is computed on an average of what was paid on

piece-goods and raw silk of said imports, adding additional imposts.

[C] 3. The ships going out of this season, (1782,) by which the above

investment is expected to be sent home, are taken up at 47_l._ 5_s._ per

ton, for the homeward cargo; this charge amounts to 35,815_l._ each

ship; the additional wages to the men, which the Company pay, and a very

small charge for demurrage, will increase the freight, &c., to

40,000_l._ per ship, agreeable to above estimate.

[D] 4. The duty of five per cent is charged by the Company on the gross

sale amount of all private trade licensed to be brought from India: the

amount of this duty is the only benefit the Company are likely to

receive from the subscription investment.

[E] 5. This charge is likewise made on private trade goods, and is

little, if anything, more than the real expense the Company are at on

account of the same; therefore no benefit will probably arise to the

Company from it on the sale of the said investment.

[F] 6. This is the sum which will probably be realized in England, and

is only equal to 1_s._ 6_d._ per rupee, on the eighty lacs subscribed.

[6] Vide Mr. Francis's plan in Appendix, No. 14, to the Select

Committee's Sixth Report.

[7] The whole sum has not been actually raised; but the deficiency is

not very considerable.

[8] Fourth Report, page 106.

[9] Par. 36. Vide Fourth Report from Com. of Secrecy in 1773, Appendix,

No. 45.

[10] Vide Sel. Letter to Bengal, 17 May, 1766, Par. 36, in Fourth Report

from Com. of Secrecy, in 1773, Appendix, No. 45.

[11] Ibid. Par. 37.

[12] Vide Committee's Fifth Report, page 21, and Appendix to that

Report, No. 12.

[13] 1st and 5th April, 1779.

ELEVENTH REPORT

OF THE

SELECT COMMITTEE OF THE HOUSE OF COMMONS

ON

THE AFFAIRS OF INDIA.

WITH EXTRACTS FROM THE APPENDIX.

November 18, 1783.

ELEVENTH REPORT

From the SELECT COMMITTEE appointed to take into

consideration the state of the administration of justice in

the provinces of Bengal, Bahar, and Orissa, and to report the

same, as it shall appear to them, to the House, with their

observations thereupon; and who were instructed to consider

how the British possessions in the East Indies may be held

and governed with the greatest security and advantage to this

country, and by what means the happiness of the native

inhabitants may be best protected.

Your Committee, in the course of their inquiry into the obedience

yielded by the Company's Servants to the orders of the Court of

Directors, (the authority of which orders had been strengthened by the

Regulating Act of 1773,) could not overlook one of the most essential

objects of that act and of those orders, namely, _the taking of gifts

and presents_. These pretended free gifts from the natives to the

Company's servants in power had never been authorized by law; they are

contrary to the covenants formerly entered into by the President and

Council, they are strictly forbidden by the act of Parliament, and

forbidden upon grounds of the most substantial policy.

Before the Regulating Act of 1773, the allowances made by the Company to

the Presidents of Bengal were abundantly sufficient to guaranty them

against anything like a necessity for giving into that pernicious

practice. The act of Parliament which appointed a Governor-General in

the place of a President, as it was extremely particular in enforcing

the prohibition of those presents, so it was equally careful in making

an ample provision for supporting the dignity of the office, in order to

remove all excuse for a corrupt increase of its emoluments.

Although evidence on record, as well as verbal testimony, has appeared

before your Committee of presents to a large amount having been received

by Mr. Hastings and others before the year 1775, they were not able to

find distinct traces of that practice in him or any one else for a few

years.

The inquiries set on foot in Bengal, by order of the Court of Directors,

in 1775, with regard to all corrupt practices, and the vigor with which

they were for some time pursued, might have given a temporary check to

the receipt of presents, or might have produced a more effectual

concealment of them, and afterwards the calamities which befell almost

all who were concerned in the first discoveries did probably prevent any

further complaint upon the subject; but towards the close of the last

session your Committee have received much of new and alarming

information concerning that abuse.

The first traces appeared, though faintly and obscurely, in a letter to

the Court of Directors from the Governor-General, Mr. Hastings, written

on the 29th of November, 1780.[14] It has been stated in a former Report

of your Committee,[15] that on the 26th of June, 1780, Mr. Hastings

being very earnest in the prosecution of a particular operation in the

Mahratta war, in order to remove objections to that measure, which were

made on account of the expense of the contingencies, he offered to

_exonerate_ the Company from that "charge." Continuing his Minute of

Council, he says, "That sum" (a sum of about 23,000_l._) "I have already

deposited, within a small amount, in the hands of the sub-treasurer; and

I _beg_ that the board will _permit_ it to be accepted for that

service." Here he offers in his own person; he deposits, or pretends

that he deposits, in his own person; and, with the zeal of a man eager

to pledge his private fortune in support of his measures, he prays that

his offer may be accepted. Not the least hint that he was delivering

back to the Company money of their own, which he had secreted from them.

Indeed, no man ever made it a request, much less earnestly entreated,

"begged to be permitted," to pay to any persons, public or private,

money that was their own.

It appeared to your Committee that the money offered for that service,

which was to forward the operations of a detachment under Colonel Camac

in an expedition against one of the Mahratta chiefs, was not accepted.

And your Committee, having directed search to be made for any sums of

money paid into the Treasury by Mr. Hastings for this service, found,

that, notwithstanding his assertion of having deposited "two lacs of

rupees, or within a trifle of that sum, in the hands of the

sub-treasurer," no entry whatsoever of that or any other payment by the

Governor-General was made in the Treasury accounts at or about that

time.[16] This circumstance appeared very striking to your Committee, as

the non-appearance in the Company's books of the article in question

must be owing to one or other of these four causes:--That the assertion

of Mr. Hastings, of his having paid in near two lacs of rupees at that

time, was not true; or that the sub-treasurer may receive great sums in

deposit without entering them in the Company's Treasury accounts; or

that the Treasury books themselves are records not to be depended on;

or, lastly, that faithful copies of these books of accounts are not

transmitted to Europe. The defect of an entry corresponding with Mr.

Hastings's declaration in Council can be attributed only to one of these

four causes,--of which the want of foundation in his recorded assertion,

though very blamable, is the least alarming.

On the 29th of November following, Mr. Hastings communicated to the

Court of Directors some sort of notice of this transaction.[17] In his

letter of that date he varies in no small degree the aspect under which

the business appeared in his Minute of Consultation of the 26th of June.

In his letter he says to the Directors, "The subject is now become

obsolete; the fair hopes which I had built upon the prosecution of the

Mahratta war have been blasted by the dreadful calamities which have

befallen your Presidency of Fort St. George, and changed the object of

our pursuit from the _aggrandizement_ of your power to its

preservation." After thus confessing, or rather boasting, of his motives

to the Mahratta war, he proceeds: "My present reason for reverting to my

own conduct on the occasion which I have mentioned" (namely, his

offering a sum of money for the Company's service) "is to obviate _the

false conclusions or purposed misrepresentations_ which may be made of

it, either as an artifice of _ostentation_ or the effect of _corrupt

influence_, by assuring you that the money, _by whatever means it came

into my possession, was not my own_, that I had myself _no right_ to it,

nor would or could have received it but for the occasion which prompted

me to avail myself _of the accidental means_ which were at that instant

afforded me of accepting and converting it to the property and use of

the Company: and with this brief apology I shall dismiss the subject."

The apology is brief indeed, considering the nature of the transaction;

and what is more material than its length or its shortness, it is in all

points unsatisfactory. The matter becomes, if possible, more obscure by

his explanation. Here was money received by Mr. Hastings, which,

according to his own judgment, he had no right to receive; it was money

which, "but for the occasion that prompted him, he could not have

accepted"; it was money which came into his, and from his into the

Company's hands, by ways and means undescribed, and from persons

unnamed: yet, though apprehensive of false conclusions and purposed

misrepresentations, he gives his employers no insight whatsoever into a

matter which of all others stood in the greatest need of a full and

clear elucidation.

Although he chooses to omit this essential point, he expresses the most

anxious solicitude to clear himself of the charges that might be made

against him, of the artifices of ostentation, and of corrupt influence.

To discover, if possible, the ground for apprehending such imputations,

your Committee adverted to the circumstances in which he stood at the

time: they found that this letter was dispatched about the time that

Mr. Francis took his passage for England; his fear of misrepresentation

may therefore allude to something which passed in conversation between

him and that gentleman at the time the offer was made.

It was not easy, on the mere face of his offer, to give an ill turn to

it. The act, as it stands on the Minute, is not only disinterested, but

generous and public-spirited. If Mr. Hastings apprehended

misrepresentation from Mr. Francis, or from any other person, your

Committee conceive that he did not employ proper means for defeating the

ill designs of his adversaries. On the contrary, the course he has taken

in his letter to the Court of Directors is calculated to excite doubts

and suspicions in minds the most favorably disposed to him. Some degree

of ostentation is not extremely blamable at a time when a man advances

largely from his private fortune towards the public service. It is human

infirmity at the worst, and only detracts something from the lustre of

an action in itself meritorious. The kind of ostentation which is

criminal, and criminal only because it is fraudulent, is where a person

makes a show of giving when in reality he does not give. This imposition

is criminal more or less according to the circumstances. But if the

money received to furnish such a pretended gift is taken from any third

person without right to take it, a new guilt, and guilt of a much worse

quality and description, is incurred. The Governor-General, in order to

keep clear of ostentation, on the 29th of November, 1780, declares, that

the sum of money which he offered on the 26th of the preceding June as

his own was not his own, and that he had no right to it. Clearing

himself of vanity, he convicts himself of deceit, and of injustice.

The other object of this brief apology was to clear himself of _corrupt

influence_. Of all ostentation he stands completely acquitted in the

month of November, however he might have been faulty in that respect in

the month of June; but with regard to the other part of the apprehended

charge, namely, _corrupt influence_, he gives no satisfactory solution.

A great sum of money "not his own,"--money to which "he had no

right,"--money which came into his possession "by whatever means":--if

this be not money obtained by corrupt influence, or by something worse,

that is, by violence or terror, it will be difficult to fix upon

circumstances which can furnish a presumption of unjustifiable use of

power and influence in the acquisition of profit. The last part of the

apology, that he had converted this money ("which he had no right to

receive") to the Company's use, so far as your Committee can discover,

_does nowhere appear_. He speaks, in the Minute of the 26th of June, as

having _then_ actually deposited it for the Company's service; in the

letter of November he says that he converted it to the Company's

property: but there is no trace in the Company's books of its being ever

brought to their credit in the expenditure for any specific service,

even if any such entry and expenditure could justify him in taking money

which he had by his own confession, "no right to receive."

The Directors appear to have been deceived by this representation, and

in their letter of January, 1782,[18] consider the money as actually

paid into their Treasury. Even under their error concerning the

application of the money, they appear rather alarmed than satisfied

with the brief apology of the Governor-General. They consider the whole

proceeding as _extraordinary and mysterious_. They, however, do not

condemn it with any remarkable asperity; after admitting that he might

be induced to a temporary secrecy _respecting the members of the board_,

from a fear of their resisting the proposed application, or any

application of this money to the Company's use, yet they write to the

Governor-General and Council as follows:--"It does not appear to us that

there could be any real necessity for delaying to communicate to _us_

immediate information of the _channel_ by which the money came into Mr.

Hastings's possession, with a complete illustration of the cause or

causes of so _extraordinary_ an event." And again: "The means proposed

of defraying the extra expenses are very _extraordinary_; and the money,

we conceive, must have come into his hands by an _unusual_ channel; and

when more complete information comes before us, we shall give our

sentiments fully on the transaction." And speaking of this and other

moneys under a similar description, they say, "We shall suspend our

judgment, without approving it in the least degree, or proceeding to

censure our Governor-General for this transaction." The expectations

entertained by the Directors of a more complete explanation were

natural, and their expression tender and temperate. But the more

complete information which they naturally expected they never have to

this day received.

Mr. Hastings wrote two more letters to the Secret Committee of the Court

of Directors, in which he mentions this transaction: the first dated (as

he asserts, and a Mr. Larkins swears) on the 22d of May, 1782;[19] the

last, which accompanied it, so late as the 16th of December in the same

year.[20] Though so long an interval lay between the transaction of the

26th of June, 1780, and the middle of December, 1782, (upwards of two

years,) no further satisfaction is given. He has written, since the

receipt of the above letter of the Court of Directors, (which demanded,

what they had a right to demand, a clear explanation of the particulars

of this sum of money which he had no right to receive,) without giving

them any further satisfaction. Instead of explanation or apology, he

assumes a tone of complaint and reproach, to the Directors: he lays

before them a kind of an account of presents received, to the amount of

upwards of 200,000_l._,--some at a considerable distance of time, and

which had not been hitherto communicated to the Company.

In the letter which accompanied that very extraordinary account, which

then for the first time appeared, he discovers no small solicitude to

clear himself from the imputation of having these discoveries drawn from

him by the terrors of the Parliamentary inquiries then on foot. To

remove all suspicion of such a motive for making these discoveries, Mr.

Larkins swears, in an affidavit made before Mr. Justice Hyde, bearing

even date with the letter which accompanies the account, that is, of the

16th of December, 1782, that this letter had been written by him on the

22d of May, several months before it was dispatched.[21] It appears that

Mr. Larkins, who makes this voluntary affidavit, is neither secretary to

the board, nor Mr. Hastings's private secretary, but an officer of the

Treasury of Bengal.

Mr. Hastings was conscious that a question would inevitably arise, how

he came to delay the sending intelligence of so very interesting a

nature from May to December. He therefore thinks it necessary to account

for so suspicious a circumstance. He tells the Directors, "that the

dispatch of the 'Lively' having been protracted from time to time, the

accompanying address, which was originally designed and prepared for

that dispatch, _and no other since occurring_, has of course been thus

long delayed."

The Governor-General's letter is dated the 22d May, and the "Resolution"

was the last ship of the season dispatched for Europe. The public

letters to the Directors are dated the 9th May; but it appears by the

letter of the commander of the ship that he did not receive his

dispatches from Mr. Lloyd, then at Kedgeree, until the 26th May, and

also that the pilot was not discharged from the ship until the 11th

June. Some of these presents (now for the first time acknowledged) had

been received eighteen months preceding the date of this letter,--none

less than four months; so that, in fact, he might have sent this account

by all the ships of that season; but the Governor-General chose to write

this letter thirteen days after the determination in Council for the

dispatch of the last ship.

It does not appear that he has given any communication whatsoever to his

colleagues in office of those extraordinary transactions. Nothing

appears on the records of the Council of the receipt of the presents;

nor is the transmission of this account mentioned in the general letter

to the Court of Directors, but in a letter from himself to their Secret

Committee, consisting generally of two persons, but at most of three. It

is to be observed that the Governor-General states, "that the dispatch

of the 'Lively' had been protracted from time to time; that this delay

was of no public consequence; but that it produced a situation which

with respect to himself he regarded as unfortunate, because it exposed

him to the meanest imputations, from the occasion which the late

Parliamentary inquiries have since furnished, but which were unknown

when his letter was written." If the Governor-General thought his

silence exposed him to the _meanest imputations_, he had the means in

his own power of avoiding those imputations: he might have sent this

letter, dated the 22d May, by the Resolution. For we find, that, in a

letter from Captain Poynting, of the 26th May, he states it not possible

for him to proceed to sea with the smallest degree of safety without a

supply of anchors and cables, and most earnestly requests they may be

supplied from Calcutta; and on the 28th May we find a minute from the

Secretary of the Council, Mr. Auriol, requesting an order of Council to

the master-attendant to furnish a sloop to carry down those cables;

which order was accordingly issued on the 30th May. There requires no

other proof to show that the Governor-General had the means of sending

this letter seven days after he wrote it, instead of delaying it for

near seven months, and because no conveyance had offered. Your Committee

must also remark, that the conveyance by land to Madras was certain; and

whilst such important operations were carrying on, both by sea and land,

upon the coast, that dispatches would be sent to the Admiralty or to the

Company was highly probable.

If the letter of the 22d May had been found in the list of packets sent

by the Resolution, the Governor General would have established in a

satisfactory manner, and far beyond the effect of any affidavit, that

the letter had been written at the time of the date. It appears that the

Resolution, being on her voyage to England, met with so severe a gale of

wind as to be obliged to put back to Bengal, and to unload her cargo.

This event makes no difference in the state of the transaction. Whatever

the cause of these new discoveries might have been, at the time of

sending them the fact of the Parliamentary inquiry was publicly known.

In the letter of the above date Mr. Hastings laments the mortification

of being reduced to take precautions "to guard his reputation from

dishonor."--"If I had," says he, "_at any time_ possessed that degree of

confidence from my _immediate_ employers which they have never withheld

from the _meanest_ of my predecessors, I should have disdained to use

these attentions."

Who the _meanest_ of Mr. Hastings's predecessors were does not appear to

your Committee; nor are they able to discern the ground of propriety or

decency for his assuming to himself a right to call any of them mean

persons. But if such mean persons have possessed that degree of

confidence from his immediate employers which for so many years he had

not possessed "_at any time_," inferences must be drawn from thence very

unfavorable to one or the other of the parties, or perhaps to both. The

attentions which he practises and disdains can in this case be of no

service to himself, his employers, or the public; the only attention at

all effectual towards extenuating, or in some degree atoning for, the

guilt of having taken money from individuals illegally was to be full

and fair in his confession of all the particulars of his offence. This

might not obtain that confidence which at no time he has enjoyed, but

still the Company and the nation might derive essential benefit from it;

the Directors might be able to afford redress to the sufferers; and by

his laying open the concealed channels of abuse, means might be

furnished for the better discovery, and possibly for the prevention, or

at least for the restraint, of a practice of the most dangerous

nature,--a practice of which the mere prohibition, without the means of

detection, must ever prove, as hitherto it had proved, altogether

frivolous.

Your Committee, considering that so long a time had elapsed without any

of that information which the Directors expected, and perceiving that

this receipt of sums of money under color of gift seemed a growing evil,

ordered the attendance of Mr. Hastings's agent, Major Scott. They had

found, on former occasions, that this gentleman was furnished with much

more early and more complete intelligence of the Company's affairs in

India than was thought proper for the Court of Directors; they therefore

examined him concerning every particular sum of money the receipt of

which Mr. Hastings had confessed in his account. It was to their

surprise that Mr. Scott professed himself perfectly uninstructed upon

almost every part of the subject, though the express object of his

mission to England was to clear up such matters as might be objected to

Mr. Hastings; and for that purpose he had early qualified himself by the

production to your Committee of his powers of agency. The ignorance in

which Mr. Hastings had left his agent was the more striking, because he

must have been morally certain, that, if his conduct in these points

should have escaped animadversion from the Court of Directors, it must

become an object of Parliamentary inquiry; for, in his letter of the

15th [16th?] of December, 1782, to the Court of Directors, he expressly

mentions his fears that those Parliamentary inquiries might be thought

to have extorted from him the confessions which he had made.

Your Committee, however, entering on a more strict examination

concerning the two lacs of rupees, which Mr. Hastings declares he had no

right to take, but had taken from some person then unknown, Major Scott

recollected that Mr. Hastings had, in a letter of the 7th of December,

1782, (in which he refers to some former letter,) acquainted him with

the name of the person from whom he had received these two lacs of

rupees, mentioned in the minute of June, 1780. It turned out to be the

Rajah of Benares, the unfortunate Cheyt Sing.

In the single instance in which Mr. Scott seemed to possess intelligence

in this matter, he is preferred to the Court of Directors. Under their

censure as Mr. Hastings was, and as he felt himself to be, for not

informing them of the channel in which he received that money, he

perseveres obstinately and contemptuously to conceal it from them;

though he thought fit to intrust his agent with the secret.

Your Committee were extremely struck with this intelligence. They were

totally unacquainted with it, when they presented to the House the

Supplement to their Second Report, on the affairs of Cheyt Sing. A gift

received by Mr. Hastings from the Rajah of Benares gave rise in their

minds to serious reflections on the condition of the princes of India

subjected to the British authority. Mr. Hastings was, at the very time

of his receiving this gift, in the course of making on the Rajah of

Benares a series of demands, unfounded and unjustifiable, and constantly

growing in proportion as they were submitted to. To these demands the

Rajah of Benares, besides his objections in point of right, constantly

sat up a plea of poverty. Presents from persons who hold up poverty as a

shield against extortion can scarcely in any case be considered as

gratuitous, whether the plea of poverty be true or false. In this case

the presents might have been bestowed; if not with an assurance, at

least with a rational hope, of some mitigation in the oppressive

requisitions that were made by Mr. Hastings; for to give much

voluntarily, when it is known that much will be taken away forcibly, is

a thing absurd and impossible. On the other [one?] hand, the acceptance

of that gift by Mr. Hastings must have pledged a tacit faith for some

degree of indulgence towards the donor: if it was a free gift,

gratitude, if it was a bargain, justice obliged him to do it. If, on the

other hand, Mr. Hastings originally destined (as he says he did) this

money, given to himself secretly and for his private emolument, to the

use of the Company, the Company's favor, to whom he acted as trustee,

ought to have been purchased by it. In honor and justice he bound and

pledged himself for that power which was to profit by the gift, and to

profit, too, in the success of an expedition which Mr. Hastings thought

so necessary to their aggrandizement. The unhappy man found his money

accepted, but no favor acquired on the part either of the Company or of

Mr. Hastings.

Your Committee have, in another Report, stated to the House that Mr.

Hastings attributed the extremity of distress which the detachments

under Colonel Camac had suffered, and the great desertions which ensued

on that expedition, to the want of punctuality of the Rajah in making

payment of one of the sums which had been extorted from him; and this

want of punctual payment was afterwards assigned as a principal reason

for the ruin of this prince. Your Committee have shown to the House, by

a comparison of facts and dates, that this charge is wholly without

foundation. But if the cause of Colonel Camac's failure had been true as

to the sum which was the object of the public demand, the failure could

not be attributed to the Rajah, when he had on the _instant_ privately

furnished at least 23,000_l._ to Mr. Hastings,--that is, furnished the

identical money which he tells us (but carefully concealing the name of

the giver) he had from the beginning destined, as he afterwards publicly

offered, for this very expedition of Colonel Camac's. The complication

of fraud and cruelty in the transaction admits of few parallels. Mr.

Hastings at the Council Board of Bengal displays himself as a zealous

servant of the Company, bountifully giving from his own fortune, and in

his letter to the Directors (as he says himself) as going out of the

ordinary roads for their advantage;[22] and all this on the credit of

supplies derived from the gift of a man whom he treats with the utmost

severity, and whom he accuses, in this particular, of disaffection to

the Company's cause and interests.

With 23,000_l._ of the Rajah's money in his pocket, he persecutes him to

his destruction,--assigning for a reason, that his reliance on the

Rajah's faith, and his breach of it, were the principal causes that _no

other_ provision was made for the detachment on the specific expedition

to which the Rajah's specific money was to be applied. The Rajah had

given it to be disposed of by Mr. Hastings; and if it was not disposed

of in the best manner for the accomplishing his objects, the accuser

himself is the criminal.

To take money for the forbearance of a just demand would have been

corrupt only; but to urge unjust public demands,--to accept private

pecuniary favors in the course of those demands,--and, on the pretence

of delay or refusal, without mercy to persecute a benefactor,--to refuse

to hear his remonstrances,--to arrest him in his capital, in his palace,

in the face of all the people,--thus to give occasion to an

insurrection, and, on pretext of that insurrection, to refuse all treaty

or explanation,--to drive him from his government and his country,--to

proscribe him in a general amnesty,--and to send him all over India a

fugitive, to publish the shame of British government in all the nations

to whom he successively fled for refuge,--these are proceedings to

which, for the honor of human nature, it is hoped few parallels are to

be found in history, and in which the illegality and corruption of the

acts form the smallest part of the mischief.

Such is the account of the first sum _confessed_ to be taken as a

present by Mr. Hastings, since the year 1775; and such are its

consequences. Mr. Hastings apologizes for this action by declaring "that

he would not have received the money but for the _occasion_, which

prompted him to avail himself of the accidental means which were at that

instant afforded him of accepting and converting it to the use of the

Company."[23] By this account, he considers the act as excusable only by

the particular occasion, by the temptation of accidental means, and by

the suggestion of the _instant_. How far this is the case appears by the

very next paragraph of this letter in which the account is given and in

which the apology is made. If these were his sentiments in June, 1780,

they lasted but a very short time: his accidental means appear to be

growing habitual.

To point out in a clear manner the spirit of the second money

transaction to which your Committee adverted, which is represented by

Mr. Hastings as having some "affinity with the former _anecdote_,"[24]

(for in this light kind of phrase he chooses to express himself to his

masters,) your Committee think it necessary to state to the House, that

the business, namely, this business, which was the second object of

their inquiry, appears in three different papers and in three different

lights: on comparing of these authorities, in every one of which Mr.

Hastings is himself the voucher, if one of the three be true, the other

two must necessarily be false.

These three authorities, which your Committee has accurately compared,

are, first, his minutes on the Consultations;[25] secondly, his letter

to the Court of Directors on the 29th of November, 1780;[26] thirdly,

his account, transmitted on the 16th of December, 1782.[27]

About eight months after the first transaction relative to Cheyt Sing,

and which is just reported, that is, on the 5th of January, 1781, Mr.

Hastings produced a demand to the Council for money of his own expended

for the Company's service.[28] Here was no occasion for secrecy. Mr.

Francis was on his passage to Europe; Mr. Wheler was alone left, who no

longer dissented from anything; Mr. Hastings was in effect himself the

whole Council. He declared that _he_ had disbursed three lacs of rupees,

that is, thirty-four thousand five hundred pounds, in secret

services,--which having, he says, "been advanced from _my own private

cash_, I request that the same may be repaid to me in the following

manner." He accordingly desires three bonds, for a lac of Sicca rupees

each, to be given to him in two of the Company's subscriptions,--one to

bear interest on the eight per cent loan, the other two in the four per

cent: the bonds were antedated to the beginning of the preceding

October. On the 9th of the same month, that is, on the 9th of January,

1781, the three bonds were accordingly ordered.[29] So far the whole

transaction appears clear, and of a piece. Private money is subscribed,

and a public security is taken for it. When the Company's Treasury

accounts[30] are compared with the proceedings of their Council-General,

a perfect correspondence also appears. The three bonds are then [there?]

entered to Mr. Hastings, and he is credited for principal and interest

on them, in the exact terms of the order. So far the official

accounts,--which, because of their perfect harmony, are considered as

clear and consistent evidence to one body of fact.

The second sort of document relative to these bonds (though the first in

order of time) is Mr. Hastings's letter of the 29th of November,

1780.[31] It is written between the time of the expenditure of the money

for the Company's use and the taking of the bonds. Here, for the first

time, a very material difference appears; and the difference is the more

striking, because Mr. Hastings claimed the _whole_ money as his own, and

took bonds for it as such, _after_ this representation. The letter to

the Company discovers that part of the money (the whole of which he had

declared on record to be his own, and for which he had taken bonds) was

not his, but the property of his masters, from whom he had taken the

security. It is no less remarkable that the letter which represents the

money as belonging to the Company was written about six weeks before the

Minute of Council in which he claims that money as his own. It is this

letter on which your Committee is to remark.

Mr. Hastings, after giving his reasons for the application of the three

lacs of rupees, and for his having for some time concealed the fact,

says, "Two thirds of that sum I have raised _by my own credit_, and

shall charge it in my official account; _the other third_ I have

supplied from the cash in my hands belonging to the Honorable

Company."[32]

The House will observe, that in November he tells the Directors that he

shall charge only _two thirds_ in his official accounts; in the

following January he charges the _whole_.[33] For the other third,

although he admitted that to belong to the Company, we have seen that he

takes a bond to _himself_.

It is material that he tells the Company in his letter that these two

lacs of rupees were _raised on his credit_. His letter to the Council

says that they were advanced from his _private cash_. What he raises on

his credit may, on a fair construction, be considered as his own: but in

this, too, he fails; for it is certain he has never transferred these

bonds to any creditor; nor has he stated any sum he has paid, or for

which he stands indebted, on that account, to any specific person.

Indeed, it was out of his power; for the first two thirds of the money,

which he formerly stated as raised upon his credit, he now confesses to

have been from the beginning the Company's property, and therefore could

not have been raised on his private credit, or borrowed from any person

whatsoever.

To these two accounts, thus essentially varying, he has added a

third,[34] varying at least as essentially from both. In his last or

third account, which is a statement of all the sums he has received in

an extraordinary manner, and confessed to be the Company's property, he

reverses the items of his first account, and, instead of allowing the

Company but one third and claiming two thirds for himself, he enters two

of the bonds, each for a lac of rupees, as belonging to the Company: of

the third bond, which appears so distinctly in the Consultations and in

the Treasury accounts, not one word is said; ten thousand pounds is

absorbed, sinks, and disappears at once, and no explanation whatsoever

concerning it is given; Mr. Hastings seems not yet to have decided to

whose account it ought to be placed. In this manner his debt to the

Company, or the Company's to him, is just what he thinks fit. In a

single article he has varied three times. In one account he states the

whole to be his own; in another he claims two thirds; in the last he

gives up the claim of the two thirds, and says nothing to the remaining

portion.

To make amends, however, for the suppression of this third bond, given

with the two others in January, 1781, and antedated to the beginning of

October, Mr. Hastings, in the above-mentioned general account subjoined

to his letter of the 22d May, 1782, has brought to the Company's credit

a new bond.[35]

This bond is for 17,000_l._ It was taken from the Company (and so it

appears on their Treasury accounts) on the 23d of November, 1780. He

took no notice of this, when, in January following, he called upon his

own Council for the three others. What is more extraordinary, he was

equally silent with regard to it, when, only six days after its date, he

wrote concerning the subject of the three other bonds to the Court of

Directors; yet now it comes out, that that bond also was taken by Mr.

Hastings from the Company for money which he declares he had received on

the Company's account, and that he entered himself as creditor when he

ought to have made himself debtor.

Your Committee examined Major Scott concerning this money, which Mr.

Hastings must have obtained in some clandestine and irregular mode; but

they could obtain no information of the persons from whom it was taken,

nor of the occasion or pretence of taking this large sum; nor does any

Minute of Council appear for its application to any service. The whole

of the transaction, whatever it was, relative to this bond, is covered

with the thickest obscurity.

Mr. Hastings, to palliate the blame of his conduct, declares that he

has not received any interest on these bonds,--and that he has indorsed

them as not belonging to himself, but to the Company.[36] As to the

first part of this allegation, whether he received the interest or let

it remain in arrear is a matter of indifference, as he entitled himself

to it; and so far as the legal security he has taken goes, he may,

whenever he pleases, dispose both of principal and interest. What he has

indorsed on the bonds, or when he made the indorsement, or whether in

fact he has made it at all, are matters known only to himself; for the

bonds must be in his possession, and are nowhere by him stated to be

given up or cancelled,--which is a thing very remarkable, when he

confesses that he had no right to receive them.

These bonds make but a part of the account of private receipts of money

by Mr. Hastings, formerly paid into the Treasury as his own property,

and now allowed not to be so. This account brings into view other very

remarkable matters of a similar nature and description.[37]

In the public records, a sum of not less than 23,871_l._ is set to his

credit as a _deposit_ for his private account, paid in by him into the

Treasury in gold, and coined at the Company's mint.[38] This appears in

the account furnished to the Directors, under the date of May, 1782, not

to be lawfully his money, and he therefore transfers it to the Company's

credit: it still remains as a deposit.[39]

That the House may be apprised of the nature of this article of

deposit, it may not be improper to state that the Company receive into

their treasury the cash of private persons, placed there as in a bank.

On this no interest is paid, and the party depositing has a right to

receive it upon demand. Under this head of account no public money is

ever entered. Mr. Hastings, neither at making the deposit as his own,

nor at the time of his disclosure of the real proprietor, (which he

makes to be the Company,) has given any information of the persons from

whom this money had been received. Mr. Scott was applied to by your

Committee, but could not give any more satisfaction in this particular

than in those relative to the bonds.

The title of the account of the 22d of May purports not only that those

sums were paid into the Company's treasury by Mr. Hastings's order, but

that they were applied to the Company's service. No service is

specified, directly or by any reference, to which this great sum of

money has been applied.

Two extraordinary articles follow this, in the May account, amounting to

about 29,000_l._[40] These articles are called Receipts for Durbar

Charges. The general head of Durbar Charges, made by persons in office,

when analyzed into the particulars, contains various expenses, including

bounties and presents made by government, chiefly in the foreign

department. But in the last account he confesses that this sum also is

not his, but the Company's property; but as in all the rest, so in this,

he carefully conceals the means by which he acquired the money, the time

of his taking it, and the persons from whom it was taken. This is the

more extraordinary, because, in looking over the journals and ledgers

of the Treasury, the presents received and carried to the account of the

Company (which were generally small and complimental) were precisely

entered, with the name of the giver.

Your Committee, on turning to the account of Durbar charges in the

ledger of that month, find the sum, as stated in the account of May 22d,

to be indeed paid in; but there is no specific application whatsoever

entered.

The account of the whole money thus clandestinely received, as stated on

the 22d of May, 1782, (and for a great part of which Mr. Hastings to

that time took credit for, and for the rest has accounted in an

extraordinary manner as his own,) amounts in the whole to upwards of

ninety-three thousand pounds sterling: a vast sum to be so obtained, and

so loosely accounted for! If the money taken from the Rajah of Benares

be added, (as it ought,) it will raise the sum to upwards of

116,000_l._; if the 11,600_l._ bond in October be added, it will be

upwards of 128,000_l._ received in a secret manner by Mr. Hastings in

about one year and five months. To all these he adds another sum of one

hundred thousand pounds, received as a present from the Subah of Oude.

Total, upwards of 228,000_l._

Your Committee find that this last is the only sum the giver of which

Mr. Hastings has thought proper to declare. It is to be observed, that

he did not receive this 100,000_l._ in money, but in bills on a great

native money-dealer resident at Benares, and who has also an house at

Calcutta: he is called Gopâl Dâs. The negotiation of these bills tended

to make a discovery not so difficult as it would have been in other

cases.

With regard to the application of this last sum of money, which is said

to be carried to the Durbar charges of April, 1782, your Committee are

not enabled to make any observations on it, as the account of that

period has not yet arrived.

Your Committee have, in another Report, remarked fully upon most of the

circumstances of this extraordinary transaction. Here they only bring so

much of these circumstances again into view as may serve to throw light

upon the true nature of the sums of money taken by British subjects in

power, under the name of _presents_, and to show how far they are

entitled to that description in any sense which can fairly imply in the

pretended donors either willingness or ability to give. The condition of

the bountiful parties who are not yet discovered may be conjectured from

the state of those who have been made known: as far as that state

anywhere appears, their generosity is found in proportion, not to the

opulence they possess or to the favors they receive, but to the

indigence they feel and the insults they are exposed to. The House will

particularly attend to the situation of the principal giver, the Subah

of Oude.

"When the knife," says he, "had penetrated to the bone, and I was

surrounded with such heavy distresses that I could no longer live in

expectations, I wrote you an account of my difficulties.

"The answer which I have received to it is such that it has given me

inexpressible grief and affliction. I never had the least idea or

expectation from you and the Council that you would ever have given your

orders in so afflicting a manner, in which you never before wrote, and

which I could not have imagined. As I am resolved to _obey_ your orders,

and directions of the Council, without any delay, as long as I live, I

have, agreeably to those _orders_, delivered up _all my private papers_

to him [the Resident], that, when he shall have examined my receipts and

expenses, _he may take whatever remains_. As I know it to be my duty to

satisfy you, the Company, and Council, I have not failed to _obey_ in

any instance, but requested of him that it might be done so as not to

_distress me in my necessary expenses_: there being no other funds but

those for the expenses of my mutseddies, household expenses, and

servants, &c. He demanded these in such a manner, that, being

_remediless_, I was obliged to comply with what he required. He has

accordingly _stopped the pensions of my old servants for thirty years,

whether sepoys, mutseddies, or household servants, and the expenses of

my family and kitchen, together with the jaghires of my grandmother,

mother, and aunts, and of my brothers and dependants, which were for

their support_. I had raised thirteen hundred horse and three battalions

of sepoys to attend upon me; but as I have no resources to support them,

I have been obliged to remove the people stationed in the mahals

[districts] and to send his people [the Resident's people] into the

mahals, so that I have not now one single servant about me. Should I

mention to what further difficulties I have been reduced, it would lay

me open to contempt."

In other parts of this long remonstrance, as well as in other

remonstrances no less serious, he says, "that it is difficult for him to

save himself alive; that in all his affairs _Mr. Hastings had given full

powers to the gentlemen here_," (meaning the English Resident and

Assistants,) "_who have done whatever they chose, and still continue to

do it_. I never expected that _you_ would have brought me into such

apprehension, and into so weak a state, without _writing to me on any

one of those subjects_; since I have not the smallest connection with

anybody except yourself. I am in such distress, both day and night, that

I see not the smallest prospect of deliverance from it, since you are so

displeased with me _as not to honor me with a single letter_."

In another remonstrance he thus expresses himself. "The affairs of this

world are unstable, and soon pass away: it would therefore be incumbent

on the _English_ gentlemen to show _some_ friendship for me in my

_necessities_,--I, who have always exerted my very life in the service

of the English, _assigned over to them all the resources left in my

country_, stopped my very household expenses, together with the jaghires

of my servants and dependants, to the amount of 98,98,375 rupees.

Besides this, as to the jaghires of my grandmother, mother, and uncle,

which were granted to them for their support, _agreeable to

engagements_, you are the _masters_,--if the Council have sent orders

for the stopping their jaghires also, stop them. I have no resources

left in my country, and have no friends by me, being even distressed in

my daily subsistence. I have some elephants, horses, and the houses

which I inhabit: if they can be of any service to my friends, they are

ready. Whenever you can discover any resources, seize upon them: I shall

not interfere to prevent you. In my present distress for my daily

expenses, I was in hopes that they would have excused some part of my

debt. Of what use is it for me to relate my situation, which is known to

the whole world? This much is sufficient."

The truth of all these representations is nowhere contested by Mr.

Hastings. It is, indeed, admitted in something stronger than words;

for, upon account of the Nabob's condition, and the no less distressed

condition of his dominions, he thought it fit to withdraw from him and

them a large body of the Company's troops, together with all the English

of a civil description, who were found no less burdensome than the

military. This was done on the declared inability of the country any

longer to support them,--a country not much inferior to England in

extent and fertility, and, till lately at least, its equal in population

and culture.

It was to a prince, in a state so far remote from freedom, authority,

and opulence, so penetrated with the treatment he had received, and the

behavior he had met with from Mr. Hastings, that Mr. Hastings has chosen

to attribute a disposition so very generous and munificent as, of his

own free grace and mere motion, to make him a present, at one donation,

of upwards of one hundred thousand pounds sterling. This vast private

donation was given at the moment of vast instant demands severely

exacted on account of the Company, and accumulated on immense debts to

the same body,--and all taken from a ruined prince and almost desolated

territory.

Mr. Hastings has had the firmness, with all possible ease and apparent

unconcern, to request permission from the Directors to legalize this

forbidden present for his own use. This he has had the courage to do at

a time when he had abundant reason to look for what he has since

received,--their censure for many material parts of his conduct towards

the people from whose wasted substance this pretended free gift was

drawn. He does not pretend that he has reason to expect the smallest

degree of partiality, in this or any other point, from the Court of

Directors. For, besides his complaint, first stated, of having never

possessed their confidence, in a late letter[41] (in which,

notwithstanding the censures of Parliament, he magnifies his own

conduct) he says, that, in all the long period of his service, "he has

almost unremittedly wanted the support which all his predecessors had

enjoyed from their constituents. From mine," says he, "I have received

_nothing but reproach, hard_ epithets, _and indignities_, instead of

rewards and encouragement." It must therefore have been from some other

source of protection than that which the law had placed over him that he

looked for countenance and reward in violating an act of Parliament

which forbid him from _taking gifts or presents on any account

whatsoever_,--much less a gift of this magnitude, which, from the

distress of the giver, must be supposed the effect of the most cruel

extortion.

The Directors did wrong in their orders to appropriate money, which they

must know could not have been acquired by the consent of the pretended

donor, to their own use.[42] They acted more properly in refusing to

confirm this grant to Mr. Hastings, and in choosing rather to refer him

to the law which he had violated than to his own sense of what he

thought he was entitled to take from the natives: putting him in mind

that the Regulating Act had expressly declared "that no

Governor-General, or any of the Council, shall, directly or indirectly,

accept, receive, or take, of or from any person or persons, or on any

account whatsoever, any present, gift, donation, gratuity, or reward,

pecuniary or otherwise, or any promise or engagement for any of the

aforesaid." Here is no reserve for the case of a disclosure to the

Directors, and for the legalizing the breach of an act of Parliament by

their subsequent consent. The illegality attached to the action at its

very commencement, and it could never be afterwards legalized: the

Directors had no such power reserved to them. Words cannot be devised of

a stronger import or studied with more care. To these words of the act

are opposed the declaration and conduct of Mr. Hastings, who, in his

letter of January, 1782, thinks fit to declare, that "an offer of a very

considerable sum of money was made to him, both on the part of the Nabob

and his ministers, as _a present_, which he _accepted without

hesitation_." The plea of his pretended necessity is of no avail. The

present was not in ready money, nor, as your Committee conceive,

applicable to his immediate necessities. Even his credit was not

bettered by bills at long periods; he does not pretend that he raised

any money upon them; nor is it conceivable that a banker at Benares

would be more willing to honor the drafts of so miserable, undone, and

dependent a person as the Nabob of Oude than those of the

Governor-General of Bengal, which might be paid either on the receipt of

the Benares revenue, or at the seat of his power, and of the Company's

exchequer. Besides, it is not explicable, upon any grounds that can be

avowed, why the Nabob, who could afford to give these bills as _a

present_ to Mr. Hastings, could not have equally given them in discharge

of the debt which he owed to the Company. It is, indeed, very much to be

feared that the people of India find it sometimes turn more to their

account to give presents to the English in authority than to pay their

debts to the public; and this is a matter of a very serious

consideration.

No small merit is made by Mr. Hastings, and that, too, in a high and

upbraiding style, of his having come to a voluntary discovery of this

and other unlawful practices of the same kind. "That honorable court,"

says Mr. Hastings, addressing himself to his masters, in his letter of

December, 1782, "ought to know whether I possess the integrity and honor

which are the first requisites of such a station. If I wanted these,

they have afforded me too powerful incentives to suppress the

information which I now convey to them through you, and to appropriate

to my own use the sums which I have already passed to their credit, by

their _unworthy_, and pardon me if I add _dangerous reflections_, which

they have passed upon me for the first communication of this kind"; and

he immediately adds, what is singular and striking, and savors of a

recriminatory insinuation, "_and your own experience_ will suggest to

you that there are persons who would profit by such a warning."[43] To

what Directors in particular this imputation of experience is applied,

and what other persons they are in whom _experience_ has shown a

disposition to profit of such a warning, is a matter highly proper to be

inquired into. What Mr. Hastings says further on this subject is no less

worthy of attention:--"_that he could have concealed these transactions,

if he had a wrong motive, from theirs and the public eye forever_."[44]

It is undoubtedly true, that, whether the observation be applicable to

the particular case or not, practices of this corrupt nature are

extremely difficult of detection anywhere, but especially in India; but

all restraint upon that grand fundamental abuse of presents is gone

forever, if the servants of the Company can derive safety from a

defiance of the law, when they can no longer hope to screen themselves

by an evasion of it. All hope of reformation is at an end, if, confiding

in the force of a faction among Directors or proprietors to bear them

out, and possibly to vote them the fruit of their crimes as a reward of

their discovery, they find that their bold avowal of their offences is

not only to produce indemnity, but to be rated for merit. If once a

presumption is admitted, that, wherever something is divulged, nothing

is hid, the discovering of one offence may become the certain means of

concealing a multitude of others. The contrivance is easy and trivial,

and lies open to the meanest proficient in this kind of art; it will not

only become an effectual cover to such practices, but will tend

infinitely to increase them. In that case, sums of money will be taken

for the purpose of discovery and making merit with the Company, and

other sums will be taken for the private advantage of the receiver.

It must certainly be impossible for the natives to know what presents

are for one purpose, or what for the other. It is not for a Gentoo or a

Mahometan landholder at the foot of the remotest mountains in India, who

has no access to our records and knows nothing of our language, to

distinguish what lacs of rupees, which he has given _eo nomine_ as a

present to a Company's servant, are to be authorized by his masters in

Leadenhall Street as proper and legal, or carried to their public

account at their pleasure, and what are laid up for his own emolument.

The legislature, in declaring all presents to be the property of the

Company, could not consider corruption, extortion, and fraud as any part

of their resources. The property in such presents was declared to be

theirs, not as a fund for their benefit, but in order to found a legal

title to a civil suit. It was declared theirs, to facilitate the

recovery out of corrupt and oppressive hands of money illegally taken;

but this legal fiction of property could not nor ought by the

legislature to be considered in any other light than as a trust held by

them for those who suffered the injury. Upon any other construction, the

Company would have a right, first, to extract money from the subjects or

dependants of this kingdom committed to their care, by means of

particular conventions, or by taxes, by rents, and by monopolies; and

when they had exhausted every contrivance of public imposition, then

they were to be at liberty to let loose upon the people all their

servants, from the highest rank to the lowest, to prey upon them at

pleasure, and to draw, by personal and official authority, by influence,

venality, and terror, whatever was left to them,--and that all this was

justified, provided the product was paid into the Company's exchequer.

This prohibition and permission of presents, with this declaration of

property in the Company, would leave no property to any man in India.

If, however, it should be thought that this clause in the act[45] should

be capable, by construction and retrospect, of so legalizing and thus

appropriating these presents, (which your Committee conceive

impossible,) it is absolutely necessary that it should be very fully

explained.

The provision in the act was made in favor of the natives. If such

construction prevails, the provision made as their screen from

oppression will become the means of increasing and aggravating it

without bounds and beyond remedy. If presents, which when they are given

were unlawful, can afterwards be legalized by an application of them to

the Company's service, no sufferer can even resort to a remedial process

at law for his own relief. The moment he attempts to sue, the money may

be paid into the Company's treasury; it is then lawfully taken, and the

party is non-suited.

The Company itself must suffer extremely in the whole order and

regularity of their public accounts, if the idea upon which Mr. Hastings

justifies the taking of these presents receives the smallest

countenance. On his principles, the same sum may become private property

or public, at the pleasure of the receiver; it is in his power, Mr.

Hastings says, to conceal it forever.[46] He certainly has it in his

power not only to keep it back and bring it forward at his own times,

but even to shift and reverse the relations in the accounts (as Mr.

Hastings has done) in what manner and proportion seems good to him, and

to make himself alternately debtor or creditor for the same sums.

Of this irregularity Mr. Hastings himself appears in some degree

sensible. He conceives it possible that his transactions of this nature

may to the Court of Directors seem unsatisfactory. He, however, puts it

hypothetically: "If to you," says he, "who are accustomed to view

business in an _official and regular light, they should appear

unprecedented, if not improper_."[47] He just conceives it possible that

in an official money transaction the Directors may expect a proceeding

official and regular. In what other lights than those which are official

and regular matters of public account ought to be regarded by those who

have the charge of them, either in Bengal or in England, does not appear

to your Committee. Any other is certainly "unprecedented and improper,"

and can only serve to cover fraud both in the receipt and in the

expenditure. The acquisition of 58,000 rupees, or near 6000_l._, which

appears in the sort of _unofficial and irregular account_ that he

furnishes of his presents, in his letter of May, 1782,[48] must appear

extraordinary indeed to those who expect from men in office something

official and something regular. "This sum," says he, "I received while I

was on my journey to Benares."[49] He tells it with the same careless

indifference as if things of this kind were found by accident on the

high-road.

Mr. Hastings did not, indeed he could not, doubt that this unprecedented

and improper account would produce much discussion. He says, "Why these

sums were taken by me, why they were (except the second) _quietly_

transferred to the Company's account, why bonds were taken for the first

and not for the rest, might, were this matter to be exposed to the view

of the public, _furnish a variety of conjectures_."[50]

This matter has appeared, and has furnished, as it ought to do,

something more serious than conjectures. It would in any other case be

supposed that Mr. Hastings, expecting such inquiries, and considering

that the questions are (even as they are imperfectly stated by himself)

far from frivolous, would condescend to give some information upon

them; but the conclusion of a sentence so importantly begun, and which

leads to such expectations, is, "that to these conjectures it would be

of little use to reply." This is all he says to public conjecture.

To the Court of Directors he is very little more complaisant, and not at

all more satisfactory; he states merely as a supposition their inquiry

concerning matters of which he positively knew that they had called for

an explanation. He knew it, because he presumed to censure them for

doing so. To the hypothesis of a further inquiry he gives a conjectural

answer of such a kind as probably, in an account of a doubtful

transaction, and to a superior, was never done before.

"_Were_ your Honorable Court to question me upon these points, I _would_

answer, that the sums were taken for the Company's benefit, at times in

which the Company very much stood in need of them; that I _either_ chose

to conceal the first receipts from public curiosity by receiving bonds

for the amount, or _possibly acted without any studied design_ which my

memory could at this distance of time verify."[51]

He here professes not to be certain of the motives by which he was

himself actuated in so extraordinary a concealment, and in the use of

such extraordinary means to effect it; and as if the acts in question

were those of an absolute stranger, and not his own, he gives various

loose conjectures concerning the motive to them. He even supposes, in

taking presents contrary to law, and in taking bonds for them as his

own, contrary to what he admits to be truth and fact, that he might have

acted without any distinct motive at all, or at least such as his

memory could reach at that distance of time. That immense distance, in

the faintness of which his recollection is so completely lost as to set

him guessing at his motives for his own conduct, was from the 15th of

January, 1781, when the bonds at his own request were given, to the date

of this letter, which is the 22d of May, 1782,--that is to say, about

one year and four months.

As to the other sums, for which no bond was taken, the ground for the

difference in his explanation is still more extraordinary: he says, "I

did not think it worth my care to observe the same means with _the

rest_."[52] The rest of these sums, which were not worth his care, are

stated in his account to be greater than those he was so solicitous (for

some reason which he cannot guess) to cover under bonds: these sums

amount to near 53,000_l._; whereas the others did not much exceed

40,000_l._ For these actions, attended with these explanations, he

ventures to appeal to their (the Directors') breasts for a candid

interpretation, and "he assumes the freedom to add, that he thinks

himself, on _such_ a subject, and on _such_ an occasion, entitled to

it";[53] and then, as if he had performed some laudable exploit, in the

accompanying letter he glories in the integrity of his conduct; and

anticipating his triumph over injustice, and the applauses which at a

future time he seems confident he shall receive, says he, "The applause

of my own breast is my surest reward: your applause and that of my

country is my next wish in life."[54] He declares in that very letter

that he had not _at any time_ possessed the confidence with them which

they never withheld from the meanest of his predecessors. With wishes so

near his heart perpetually disappointed, and, instead of applauses, (as

he tells us,) receiving nothing but reproaches and disgraceful epithets,

his steady continuance for so many years in their service, in a place

obnoxious in the highest degree to suspicion and censure, is a thing

altogether singular.

It appears very necessary to your Committee to observe upon the great

leading principles which Mr. Hastings assumes, to justify the irregular

taking of these vast sums of money, and all the irregular means he had

employed to cover the greater part of it. These principles are the more

necessary to be inquired into, because, if admitted, they will serve to

justify every species of improper conduct. His words are, "that the

sources from which these reliefs to the public service have come would

never have yielded them to the Company _publicly_; and that the

exigencies of their service (exigencies created by the exposition of

their affairs, and faction in their divided councils) required those

supplies."[55]

As to the first of these extraordinary positions, your Committee cannot

conceive what motive could actuate any native of India dependent on the

Company, in assisting them privately, and in refusing to assist them

publicly. If the transaction was fair and honest, every native must have

been desirous of making merit with the great governing power. If he gave

his money as a free gift, he might value himself upon very honorable and

very acceptable service; if he lent it on the Company's bonds, it would

still have been of service, and he might also receive eight per cent

for his money. No native could, without some interested view, give to

the Governor-General what he would refuse to the Company as a grant, or

even as a loan. It is plain that the powers of government must, in some

way or other, be understood by the natives to be at sale. The

Governor-General says that he took the money with an original

destination to the purposes to which he asserts he has since applied it.

But this original destination was in his own mind only,--not declared,

nor by him pretended to be declared, to the party who gave the presents,

and who could perceive nothing in it but money paid to the supreme

magistrate for his private emolument. All that the natives could

possibly perceive in such a transaction must be highly dishonorable to

the Company's government; for they must conceive, when they gave money

to Mr. Hastings, that they bought from Mr. Hastings either what was

their own right or something that was not so, or that they redeemed

themselves from some acts of rigor inflicted, threatened, or

apprehended. If, in the first case, Mr. Hastings gave them the object

for which they bargained, his act, however proper, was corrupt,--if he

did not, it was both corrupt and fraudulent; if the money was extorted

by force or threats, it was oppressive and tyrannical. The very nature

of such transactions has a tendency to teach the natives to pay a

corrupt court to the servants of the Company; and they must thereby be

rendered less willing, or less able, or perhaps both, to fulfil their

engagements to the state. Mr. Scott's evidence asserts that they would

rather give to Mr. Hastings than lend to the Company. It is very

probable; but it is a demonstration of their opinion of his power and

corruption, and of the weak and precarious state of the Company's

authority.

The second principle assumed by Mr. Hastings for his justification,

namely, that factious opposition and a divided government might create

exigencies requiring such supplies, is full as dangerous as the first;

for, if, in the divisions which must arise in all councils, one member

of government, when he thinks others factiously disposed, shall be

entitled to take money privately from the subject for the purposes of

his politics, and thereby to dispense with an act of Parliament,

pretences for that end cannot be wanting. A dispute may always be raised

in council in order to cover oppression and peculation elsewhere. But

these principles of Mr. Hastings tend entirely to destroy the character

and functions of a council, and to vest them in one of the dissentient

members. The law has placed the sense of the whole in the majority; and

it is not a thing to be suffered, that any of the members should

privately raise money for the avowed purpose of defeating that sense, or

for promoting designs that are contrary to it: a more alarming

assumption of power in an individual member of any deliberative or

executive body cannot be imagined. Mr. Hastings had no right, in order

to clear himself of peculation, to criminate the majority with faction.

No member of any body, outvoted on a question, has, or can have, a right

to direct any part of his public conduct by that principle. The members

of the Council had a common superior, to whom they might appeal in their

mutual charges of faction: they did so frequently; and the imputation of

faction has almost always been laid on Mr. Hastings himself.

But there were periods, very distinguished periods too, in the records

of the Company, in which the clandestine taking of money could not be

supported even by this pretence. Mr. Hastings has been charged with

various acts of peculation, perpetrated at a time he could not excuse

himself by the plea of any public purpose to be carried on, or of any

faction in council by which it was traversed. It may be necessary here

to recall to the recollection of the House, that, on the cry which

prevailed of the ill practices of the Company's servants in India,

(which general cry in a great measure produced the Regulating Act of

1773,) the Court of Directors, in their instructions of the 29th of

March, 1774, gave it as an injunction to the Council-General, that "they

_immediately_ cause the _strictest_ inquiry to be made into _all_

oppressions which may have been committed either against natives or

Europeans, and into _all_ abuses which may have prevailed in the

collection of the revenues or _any part of the civil government_ of the

Presidency; and that you communicate to us _all information_ which you

may be able to obtain relative thereto, or any embezzlement or

dissipation of the Company's money."

In this inquiry, by far the most important abuse which appeared on any

of the above heads was that which was charged relative to the sale in

gross by Mr. Hastings of nothing less than the whole authority of the

country government in the disposal of the guardianship of the Nabob of

Bengal.

The present Nabob, Mobarek ul Dowlah, was a minor when he succeeded to

the title and office of Subahdar of the three provinces in 1770.

Although in a state approaching to subjection, still his rank and

character were important. Much was necessarily to depend upon a person

who was to preserve the moderation of a sovereign not supported by

intrinsic power, and yet to maintain the dignity necessary to carry on

the representation of political government, as well as the substance of

the whole criminal justice of a great country. A good education,

conformably to the maxims of his religion and the manners of his people,

was necessary to enable him to fill that delicate place with reputation

either to the Mahometan government or to ours. He had still to manage a

revenue not inconsiderable, which remained as the sole resource for the

languishing dignity of persons any way distinguished in rank among

Mussulmen, who were all attached and clung to him. These considerations

rendered it necessary to put his person and affairs into proper hands.

They ought to have been men who were able by the gravity of their rank

and character to preserve his morals from the contagion of low and

vicious company,--men who by their integrity and firmness might be

enabled to resist in some degree the rapacity of Europeans, as well as

to secure the remaining fragments of his property from the attempts of

the natives themselves, who must lie under strong temptation of taking

their share in the last pillage of a decaying house.

The Directors were fully impressed with the necessity of such an

arrangement. Your Committee find, that, on the 26th of August, 1771,

they gave instructions to the President and Council to appoint "a

minister to transact the political affairs of the circar

[government],--and to select for that purpose some person well qualified

for the affairs of government to be the minister of the government, and

guardian of the Nabob's minority."

The order was so distinct as not to admit of a mistake; it was (for its

matter) provident and well considered; and the trust which devolved on

Mr. Hastings was of such a nature as might well stimulate a man

sensible to reputation to fulfil it in a manner agreeably to the

directions he had received, and not only above just cause of exception,

but out of the reach of suspicion and malice. In that situation it was

natural to suppose he would cast his eyes upon men of the first repute

and consideration among the Mussulmen of high rank.

Mr. Hastings, instead of directing his eyes to the durbar, employed his

researches in the seraglio. In the inmost recesses of that place he

discovered a woman secluded from the intercourse and shut up from the

eyes of men, whom he found to correspond with the orders he had received

from the Directors, as a person well "qualified for the affairs of

government, fit to be a minister of government and the guardian of the

Nabob's minority." This woman he solemnly invests with these functions.

He appoints Rajah Gourdas, whom some time after he himself qualified

with a description of a young man of mean abilities, to be her duan, or

steward of the household. The rest of the arrangement was correspondent

to this disposition of the principal offices.

It seems not to have been lawful or warrantable in Mr. Hastings to set

aside the arrangement positively prescribed by the Court of Directors,

which evidently pointed to a man, not to any woman whatever. As a woman

confined in the female apartment, the lady he appointed could not be

competent to hold or qualified to exercise any active employment: she

stood in need of guardians for herself, and had not the ability for the

guardianship of a person circumstanced as the Subah was. General

Clavering, Colonel Monson, and Mr. Francis declare in their minute,

"that they believe there never was an instance in India of such a trust

so disposed of." Mr. Hastings has produced no precedent in answer to

this objection.

It will be proper to state to the House the situation and circumstances

of the women principally concerned, who were in the seraglio of Jaffier

Ali Khân at his death. The first of these was called Munny Begum, a

person originally born of poor and obscure parents, who delivered her

over to the conductress of a company of dancing girls; in which

profession being called to exhibit at a festival, the late Nabob took a

liking to her, and, after some cohabitation, she obtained such influence

over him that he took her for one of his wives and (she seems to have

been the favorite) put her at the head of his harem; and having a son by

her, this son succeeded to his authority and estate,--Munny Begum, the

mother, being by his will a devisee of considerable sums of money, and

other effects, on which he left a charge, which has since been applied

to the service of the East India Company. The son of this lady dying,

and a son by another wife succeeding, and dying also, the present Nabob,

Mobarek ul Dowlah, son by a third wife, succeeded. This woman was then

alive, and in the seraglio.

It was Munny Begum that Mr. Hastings chose, and not the natural mother

of the Nabob. Whether, having chosen a woman in defiance of the

Company's orders, and in passing by the natural parent of the minor

prince, he was influenced by respect for the disposition made by the

deceased Nabob during his life, or by other motives, the House will

determine upon a view of the facts which follow. It will be matter of

inquiry, when the question is stated upon the appointment of a

stepmother in exclusion of the parent, whether the usage of the East

constantly authorizes the continuance of that same distribution of rank

and power which was settled in the seraglio during the life of a

deceased prince, and which was found so settled at his death, and

afterwards, to the exclusion of the mother of the successor. In case of

female guardianship, her claim seems to be a right of Nature, and which

nothing but a very clear positive law will (if that can) authorize the

departure from. The history of Munny Begum is stated on the records of

the Council-General, and no attempt made by Mr. Hastings to controvert

the truth of it.

That was charged by the majority of Council to have happened which might

be expected inevitably to happen: the care of the Nabob's education was

grossly neglected, and his fortune as grossly mismanaged and embezzled.

What connection this waste and embezzlement had with the subsequent

events the House will judge.

On the 2d of May, 1775, Mr. James Grant, accountant to the Provincial

Council of Moorshedabad, produced to the Governor-General and Council

certain Persian papers which stated nine lacs of rupees (upwards of

ninety thousand pounds sterling) received by Munny Begum, on her

appointment to the management of the Nabob's household, over and above

the balance due at that time, and not accounted for by her. These Grant

had received from Nuned Roy, who had been a writer in the Begum's

Treasury Office. Both Mr. Grant and Nuned Roy were called before the

board, and examined respecting the authenticity of the papers. Among

other circumstances tending to establish the credit of these papers, it

appears that Mr. Grant offered to make oath that the chief eunuch of the

Begum had come to him on purpose to prevail on him not to send the

papers, and had declared _that the accounts were not to be disputed_.

On the 9th of May it was resolved by a majority of the board, against

the opinion and solemn protest of the Governor-General, that a gentleman

should be sent up to the city of Moorshedabad to demand of Munny Begum

the accounts of the nizamut and household, from April, 1764, to the

latest period to which they could be closed, and to divest the Begum of

the office of guardian to the Nabob; and Mr. Charles Goring was

appointed for this purpose.

The preceding facts are stated to the House, not as the foundation of an

inquiry into the conduct of the Begum, but as they lead to and are

therefore necessary to explain by what means a discovery was made of a

sum of money given by her to Mr. Hastings.

Mr. Goring's first letter from the city, dated 17th May, 1775, mentions,

among other particulars, the young Nabob's joy at being delivered out of

the hands of Munny Begum, of the mean and indigent state of confinement

in which he was kept by her, of the distress of his mother, and that he

had told Mr. Goring that the "Begum's eunuch had instructed the servants

not to suffer him to learn anything by which he might make himself

acquainted with business": and he adds, "Indeed, I believe there is

great truth in it, as his Excellency seems to be ignorant of almost

everything a man of his rank ought to know,--not from a want of

understanding, but of being properly educated."

On the 21st of May, Mr. Goring transmitted to the Governor-General and

Council an account of sums given by the Begum under her seal, delivered

to Mr. Goring by the Nabob in her apartments. The account is as follows.

Memorandum of Disbursements to English Gentlemen, from the

Nabob's Sircar, in the Bengal Year 1179.

+--------------------+

|Seal of Munny Begum,|

|Mother of the Nabob |

|Nudjuf ul Dowlah, |

|deceased. |

+--------------------+

To the Governor, Mr. Hastings, for an

entertainment 1,50,000

To Mr. Middleton, on account of an agreement

entered into by Baboo Begum 1,50,000

--------

Rupees 3,00,000

When this paper was delivered, the Governor-General moved that Mr.

Goring might be asked _how he came by it_, and _on what account this

partial selection was made by him_; also, that the Begum should be

desired _to explain the sum laid to his charge_, and that he should ask

_the Nabob or the Begum their reasons for delivering this separate

account_.

The substance of the Governor's proposal was agreed to.

Mr. Goring's answer to this requisition of the board is as follows.

"In compliance with your orders to explain the delivery of the paper

containing an account of three lacs of rupees, I am to inform you, it

took its rise from a message sent me by the Begum, requesting I would

interest myself with the Nabob to have Akbar Ali Khân released to her

for a few hours, having something of importance to communicate to me, on

which she wished to consult him. Thinking the service might be benefited

by it, I accordingly desired the Nabob would be pleased to deliver him

to my charge, engaging to return him the same night,--which I did. I

heard no more till next day, when the Begum requested to see his

Excellency and myself, desiring Akbar Ali might attend.

"On our first meeting, she entered into a long detail of her

administration, endeavoring to represent it in the fairest light; at

last she came to the point, and told me, my urgent and repeated

remonstrances to her to be informed how the balance arose of which I was

to inquire induced her from memory to say what she had herself

given,--then mentioning the sum of a lac and a half to the Governor to

feast him whilst he stayed there, and a lac and a half to Mr. Middleton

by the hands of Baboo Begum. As I looked on this no more than a matter

of conversation, I arose to depart, but was detained by the Begum's

requesting the Nabob to come to her. A scene of weeping and complaint

then began, which made me still more impatient to be gone, and I

repeatedly sent to his Excellency for that purpose: he at last came out

and delivered me the paper I sent you, declaring it was given him by the

Begum to be delivered me."

Munny Begum also wrote a letter to General Clavering, in which she

directly asserts the same. "Mr. Goring has pressed me on the subject of

the balances; in answer to which I informed him, that all the

particulars, being on record, would in the course of the inquiry appear

from the papers. He accordingly received from the Nabob Mobarek ul

Dowlah a list of three lacs of rupees given to the Governor and Mr.

Middleton. I now send you inclosed a list of the dates when it was

presented, and through whose means, which you will receive."

The Governor-General then desired that the following questions might be

proposed to the Begum by Mr. Martin, then Resident at the Durbar.

1st. Was any application made to you for the account which you have

delivered, of three lacs of rupees said to have been paid to the

Governor and Mr. Middleton, or did you deliver the account of your own

free will, and unsolicited?

2d. In what manner was the application made to you, and by whom?

3d. On what account was the sum of one and half lacs given to the

Governor-General, which you have laid to his account? Was it in

consequence of any requisition from him, or of any previous agreement,

or of any established usage?

The Governor-General objected strongly to Mr. Goring's being present

when the questions were put to the Begum; but it was insisted on by the

majority, and it was resolved accordingly, that he ought to be present.

The reasons on both sides will best appear by the copy of the debate,

inserted in the Appendix.

The Begum's answer to the preceding questions, addressed to the

Governor-General and Council, where it touched the substance, was as

follows.

"The case is this. Mr. Goring, on his arrival here, _seized all the

papers, and secured them under his seal; and all the mutsuddies [clerks

or accountants] attended him, and explained to him all the particulars

of them_. Mr. Goring inquired of me concerning the arrears due to the

sepoys, &c., observing, that the nizamut and bhela money [Nabob's

allowance] was received from the Company; from whence, then, could the

balance arise? I made answer, that the sum was not adequate to the

expenses. Mr. Goring then asked, What are those expenses which exceed

the sum received from the Company? I replied, _All the particulars will

be found in the papers_. The affair of the three lacs of rupees, _on

account of entertainment for the Governor and Mr. Middleton_, has been,

I am told, related to you by Rajah Gourdas; besides which there are many

other expenses, which will appear from the papers. As the custom of

entertainment is of long standing, and accordingly every Governor of

Calcutta who came to Moorshedabad received a daily sum of two thousand

rupees for entertainment, which, was in fact instead of provisions; and

the lac and an half of rupees laid to Mr. Middleton's charge was _a

present on account of an agreement entered into by the Bhow Begum_. I

therefore affixed my seal to the account, and forwarded it to Mr. Goring

by means of the Nabob."

In this answer, the accounts given to Mr. Goring she asserts to be

genuine. They are explained, in all the particulars, by all the

secretaries and clerks in office. They are secured under Mr. Goring's

seal. To them she refers for everything; to them she refers for the

three lacs of rupees given to Mr. Hastings and Mr. Middleton. It is

impossible to combine together a clearer body of proof, composed of

record of office and verbal testimony mutually supporting and

illustrating each other.

The House will observe that the receipt of the money is indirectly

admitted by one of the Governor's own questions to Munny Begum.

If the money was not received, it would have been absurd to ask _on what

account it was given_. Both the question and the answer relate to some

established usage, the appeal to which might possibly be used to justify

the acceptance of the money, if it was accepted, but would be

superfluous, and no way applicable to the charge, if the money was never

given.

On this point your Committee will only add, that, in all the controversy

between Mr. Hastings and the majority of the Council, he _nowhere denies

the receipt of this money_. In his letter to the Court of Directors of

the 31st of July, 1775, he says that the Begum was compelled by the ill

treatment of one of her servants, which he calls _a species of torture_,

to deliver the paper to Mr. Goring; but he nowhere affirms that the

contents of the paper were false.

On this conduct the majority remark, "We confess it appears very

extraordinary that Mr. Hastings should employ so much time and labor to

show that the discoveries against him have been obtained by improper

means, but that he should take no step whatsoever _to invalidate the

truth of them_. He does not deny the receipt of the money: the Begum's

answers to the questions put to her at his own desire make it impossible

that he should deny it. It seems, he has formed some plan of defence

against this and similar charges, which he thinks will avail him in a

court of justice, and which it would be imprudent in him to anticipate

at this time. If he has not received the money, we see no reason for

such a guarded and cautious method of proceeding. An innocent man would

take a shorter and easier course. He would voluntarily exculpate

himself by his oath."

Your Committee entertain doubts whether the refusal to exculpate by oath

can be used as a circumstance to infer any presumption of guilt. But

where the charge is direct, specific, circumstantial, supported by

papers and verbal testimony, made before his lawful superiors, to whom

he was accountable, by persons competent to charge, if innocent, he was

obliged at least to oppose to it a clear and formal denial of the fact,

and to make a demand for inquiry. But if he does not deny the fact, and

eludes inquiry, just presumptions will be raised against him.

Your Committee, willing to go to the bottom of a mode of corruption deep

and dangerous in the act and the example, being informed that Mr. Goring

was in London, resolved to examine him upon the subject. Mr. Goring not

only agreed with all the foregoing particulars, but even produced to

your Committee what he declared to be the original Persian papers in his

hands, delivered from behind the curtain through the Nabob himself, who,

having privilege, as a son-in-law, to enter the women's apartment,

received them from Munny Begum as authentic,--the woman all the while

lamenting the loss of her power with many tears and much vociferation.

She appears to have been induced to make discovery of the above

practices in order to clear herself of the notorious embezzlement of the

Nabob's effects.

Your Committee examining Mr. Scott and Mr. Baber on this subject, they

also produced a Persian paper, which Mr. Baber said he had received from

the hands of a servant of Munny Begum,--and along with it a paper

purporting to be a translation into English of the Persian original. In

the paper given as the translation, Munny Begum is made to allege many

matters of hardship and cruelty against Mr. Goring, and an attempt to

compel her to make out a false account, but does not at all deny the

giving the money: very far from it. She is made to assert, indeed, "that

Mr. Goring desired her to put down three lacs of rupees, as divided

between Mr. Hastings and Mr. Middleton. I begged to be excused,

observing to him that this money had neither been tendered or _accepted_

with any criminal or improper view." After some lively expressions in

the European manner, she says, "that it had been customary to furnish a

table for the Governor and his attendants, during their stay at court.

With respect to the sum mentioned to Mr. Middleton, it was a _free gift_

from my own _privy purse_. Purburam replied, he understood this money to

be paid to these gentlemen as a gratuity for _secret services_; and as

such he should assuredly represent it." Here the payments to Mr.

Hastings are fully admitted, and excused as agreeable to usage, and for

keeping a table. The present to Mr. Middleton is justified as a free

gift. The paper produced by Mr. Scott is not referred to by your

Committee as of any weight, but to show that it does not prove what it

is produced to prove.

Your Committee, on reading the paper delivered in by Mr. Scott as a

translation, perceive it to be written in a style which they conceived

was little to be expected in a faithful translation from a Persian

original, being full of quaint terms and idiomatic phrases, which

strongly bespeak English habits in the way of thinking, and of English

peculiarities and affectations in the expression. Struck with these

strong internal marks of a suspicious piece, they turned to the Persian

manuscript produced by Mr. Scott and Mr. Baber, and comparing it with

Mr. Goring's papers, they found the latter carefully sealed upon every

leaf, as they believe is the practice universal in all authentic pieces.

They found on the former no seal or signature whatsoever, either at the

top or bottom of the scroll. This circumstance of a want of signature

not only takes away all authority from the piece as evidence, but

strongly confirmed the suspicions entertained by your Committee, on

reading the translation, of unwarrantable practices in the whole conduct

of this business, even if the translation should be found substantially

to agree with the original, such an original as it is. The Persian roll

is in the custody of the clerk of your Committee for further

examination.

Mr. Baber and Mr. Scott, being examined on these material defects in the

authentication of a paper produced by them as authentic, could give no

sort of account how it happened to be without a signature; nor did Mr.

Baber explain how he came to accept and use it in that condition.

On the whole, your Committee conceive that all the parts of the

transaction, as they appear in the Company's records, are consistent,

and mutually throw light on each other.

The Court of Directors order the President and Council to appoint a

_minister_ to transact the _political_ affairs of the government, and to

_select_ for that purpose some person well qualified for the _affairs of

government_, and to be the _minister of government_. Mr. Hastings

selects for the minister so described and so qualified a woman locked up

in a seraglio. He is ordered to appoint a guardian to the Nabob's

minority. Mr. Hastings passes by his natural parent, and appoints

another woman. These acts would of themselves have been liable to

suspicion. But a great deficiency or embezzlement soon appears in this

woman's account. To exculpate herself, she voluntarily declares that she

gave a considerable sum to Mr. Hastings, who never once denies the

receipt. The account given by the principal living witness of the

transaction in his evidence is perfectly coherent, and consistent with

the recorded part. The original accounts, alleged to be delivered by the

lady in question, were produced by him, properly sealed and

authenticated. Nothing is opposed to all this but a paper without

signature, and therefore of no authority, attended with a translation of

a very extraordinary appearance; and this paper, in apologizing for it,

confirms the facts beyond a doubt.

Finally, your Committee examined the principal living witness of the

transaction, and find his evidence consistent with the record. Your

Committee received the original accounts, alleged to be delivered by the

lady in question, properly sealed and authenticated, and find opposed to

them nothing but a paper without signature, and therefore of no

authority, attended with a translation of a very extraordinary

appearance.

In Europe the Directors ordered opinions to be taken on a prosecution:

they received one doubtful, and three positively for it.

They write, in their letter of 5th February, 1777, paragraphs 32 and

33:--

"Although it is rather our wish to prevent evils in future than to enter

into a severe retrospection of the past, and, where facts are doubtful,

or attended with alleviating circumstances, to proceed with lenity,

rather than to prosecute with rigor,--yet some of the cases are so

flagrantly corrupt, and others attended with circumstances so oppressive

to the inhabitants, that it would be unjust to suffer the delinquents to

go unpunished. The principal facts[56] have been communicated to our

solicitor, whose report, confirmed by our standing counsel, we send you

by the present conveyance,--authorizing you, at the same time, to take

such steps as shall appear proper to be pursued.

"If we find it necessary, we shall return you the original covenants of

such of our servants as remain in India, and have been anyways concerned

in the undue receipt of money, in order to enable you to recover the

same for the use of the Company by a suit or suits at law, to be

instituted in the Supreme Court of Judicature in Bengal."

Your Committee do not find that the covenants have been sent, or that

any prosecution has been begun.

A vast scene of further peculation and corruption, as well in this

business as in several other instances, appears in the evidence of the

Rajah Nundcomar. That evidence, and all the proceedings relating to it,

are entered in the Appendix. It was the last evidence of the kind. The

informant was hanged. An attempt was made by Mr. Hastings to indict him

for a conspiracy; this failing of effect, another prosecutor appeared

for an offence not connected with these charges. Nundcomar, the object

of that charge, was executed, at the very crisis of the inquiry, for an

offence of another nature, not capital by the laws of the country. As

long as it appeared safe, several charges were made (which are inserted

at large in the Appendix); and Mr. Hastings and Mr. Barwell seemed

apprehensive of many more. General Clavering, Colonel Monson, and Mr.

Francis declared, in a minute entered on the Consultations of the 5th

May, 1775, that, "in the late proceedings of the Revenue Board, it will

appear that there is no species of peculation from which the Honorable

Governor-General has thought proper to abstain." A charge of offences of

so heinous a nature, so very extensive, so very deliberate, made on

record by persons of great weight, appointed by act of Parliament his

associates in the highest trust,--a charge made at his own board, to his

own face, and transmitted to their common superiors, to whom they were

jointly and severally accountable, this was not a thing to be passed

over by Mr. Hastings; still less ought it to have perished in other

hands. It ought to have been brought to an immediate and strict

discussion. General Clavering, Colonel Monson, and Mr. Francis ought to

have been punished for a groundless accusation, if such it had been. If

the accusation were founded, Mr. Hastings was very unfit for the high

office of Governor-General, or for any office.

After this comprehensive account by his colleagues of the

Governor-General's conduct, these gentlemen proceeded to the

particulars, and they produced the case of a corrupt bargain of Mr.

Hastings concerning the disposition of office. This transaction is here

stated by your Committee in a very concise manner, being on this

occasion merely intended to point out to the House the absolute

necessity which, in their opinion, exists for another sort of inquiry

into the corruptions of men in power in India than hitherto has been

pursued. The proceedings may be found at large in the Appendix.

A complaint was made that Mr. Hastings had sold the office of Phousdar

of Hoogly to a person called Khân Jehan Khân on a corrupt agreement,--which

was, that from his emoluments of seventy-two thousand rupees a

year he was to pay to the Governor-General thirty-six thousand rupees

annually, and to his banian, Cantoo Baboo, four thousand more. The

complainant offers to pay to the Company the forty thousand rupees which

were corruptly paid to these gentlemen, and to content himself with the

allowance of thirty-two thousand. Mr. Hastings was, if on any occasion

of his life, strongly called upon to bring this matter to the most

distinct issue; and Mr. Barwell, who supported his administration, and

as such ought to have been tender for his honor, was bound to help him

to get to the bottom of it, if his enemies should be ungenerous enough

to countenance such an accusation, without permitting it to be detected

and exposed. But the course they held was directly contrary. They began

by an objection to receive the complaint, in which they obstinately

persevered as far as their power went. Mr. Barwell was of opinion that

the Company's instructions to inquire into peculation were intended for

the public interests,--that it could not forward the public interests to

enter into these inquiries,--and that "he never would be a channel of

aspersing any character, while it cannot conduce to the good of

government." Here was a new mode of reasoning found out by Mr. Barwell,

which might subject all inquiry into peculation to the discretion of

the very persons charged with it. By that reasoning all orders of his

superiors were at his mercy; and he actually undertook to set aside

those commands which by an express act of Parliament he was bound to

obey, on his opinion of what would or would not conduce to the good of

government. On his principles, he either totally annihilates the

authority of the act of Parliament, or he entertains so extravagant a

supposition as that the Court of Directors possessed a more absolute

authority, when their orders were not intended for the public good, than

when they were.

General Clavering was of a different opinion. He thought "he should be

wanting to the legislature, and to the Court of Directors, if he was not

to receive the complaints of the inhabitants, when properly

authenticated, and to prefer them to the board for investigation, as the

only means by which these grievances can be redressed, and the Company

informed of the conduct of their servants."

To these sentiments Colonel Monson and Mr. Francis adhered. Mr. Hastings

thought it more safe, on principles similar to those assumed by Mr.

Barwell, to refuse to hear the charge; but he reserved his remarks on

this transaction, because they will be equally applicable to _many

others which in the course of this business are likely to be brought

before the board_. There appeared, therefore, to him a probability that

the charge about the corrupt bargain was no more than the commencement

of a whole class of such accusations; since he was of opinion (and what

is very extraordinary, previous to any examination) that the same

remarks would be applicable to several of those which were to follow. He

must suppose this class of charges very uniform, as well as very

extensive.

The majority, however, pressed their point; and notwithstanding his

opposition to all inquiry, as he was supported only by Mr. Barwell, the

question for it was carried. He was then desired to name a day for the

appearance of the accuser, and the institution of the inquiry. Though

baffled in his attempt to stop the inquiry in the first stage, Mr.

Hastings made a second stand. He seems here to have recollected

something inherent in his own office, that put the matter more in his

power than at first he had imagined; for he speaks in a positive and

commanding tone: "I will not," says his minute, "name a day for Mir Zin

ul ab Dien to appear before the board; _nor will I suffer him to appear

before the board_."

The question for the inquiry had been carried; it was declared fit to

inquire; but there was, according to him, a power which might prevent

the appearance of witnesses. On the general policy of obstructing such

inquiries, Mr. Francis, on a motion to that effect, made a sound remark,

which cannot fail of giving rise to very serious thoughts: "That,

supposing it agreed among ourselves that the board shall not hear any

charges or complaints against a member of it, a case or cases may

hereafter happen, in which, by a reciprocal complaisance to each other,

our respective misconduct may be effectually screened from inquiry; and

the Company, whose interest is concerned, or the parties who may have

reason to complain of any one member individually, may be left without

remedy."

Mr. Barwell was not of the opinion of that gentleman, nor of the maker

of the motion, General Clavering, nor of Mr. Monson, who supported it.

He entertains sentiments with regard to the orders of the Directors in

this particular perfectly correspondent with those which he had given

against the original inquiry. He says, "Though it may in some little

degree save the Governor-General from personal insult, where there is no

judicial power lodged, that of inquisition can never answer any good

purpose." This is doctrine of a most extraordinary nature and tendency,

and, as your Committee conceive, contrary to every sound principle to be

observed in the constitution of judicatures and inquisitions. The power

of inquisition ought rather to be wholly separated from the judicial,

the former being a previous step to the latter, which requires other

rules and methods, and ought not, if possible, to be lodged in the same

hands. The rest of his minute (contained in the Appendix) is filled with

a censure on the native inhabitants, with reflections on the ill

consequences which would arise from an attention to their complaints,

and with an assertion of the authority of the Supreme Court, as

superseding the necessity and propriety of such inquiries in Council.

With regard to his principles relative to the natives and their

complaints, if they are admitted, they are of a tendency to cut off the

very principle of redress. The existence of the Supreme Court, as a

means of relief to the natives under all oppressions, is held out to

qualify a refusal to hear in the Council. On the same pretence, Mr.

Hastings holds up the authority of the same tribunal. But this and other

proceedings show abundantly of what efficacy that court has been for the

relief of the unhappy people of Bengal. A person in delegated authority

refuses a satisfaction to his superiors, throwing himself on a court of

justice, and supposes that nothing but what judicially appears against

him is a fit subject of inquiry. But even in this Mr. Hastings fails in

his application of his principle; for the majority of the Council were

undoubtedly competent to order a prosecution against him in the Supreme

Court, which they had no ground for without a previous inquiry. But

their inquiry had other objects. No private accuser might choose to

appear. The party who was the subject of the peculation might be (as

here is stated) the accomplice in it. No popular action or popular suit

was provided by the charter under whose authority the court was

instituted. In any event, a suit might fail in the court for the

punishment of an actor in an abuse for want of the strictest legal

proof, which might yet furnish matter for the correction of the abuse,

and even reasons strong enough not only to justify, but to require, the

Directors instantly to address for the removal of a

Governor-General.--The opposition of Mr. Hastings and Mr. Barwell proved

as ineffectual in this stage as the former; and a day was named by the

majority for the attendance of the party.

The day following this deliberation, on the assembling of the Council,

the Governor-General, Mr. Hastings, said, "he would not sit to be

confronted by such accusers, nor to _suffer_ a judicial inquiry into his

conduct at the board of which he is the president." As on the former

occasions, he declares the board dissolved. As on the former occasions,

the majority did not admit his claim to this power; they proceeded in

his absence to examine the accuser and witnesses. Their proceedings are

in Appendix K.

It is remarkable, that, during this transaction, Khân Jehan Khân, the

party with whom the corrupt agreement was made, declined an attendance

under excuses which the majority thought pretences for delay, though

they used no compulsory methods towards his appearance. At length,

however, he did appear, and then a step was taken by Mr. Hastings of a

very extraordinary nature, after the steps which he had taken before,

and the declarations with which those steps had been accompanied. Mr.

Hastings, who had absolutely refused to be present in the foregoing part

of the proceeding, appeared with Khân Jehan Khân. And now the affair

took another turn; other obstructions were raised. General Clavering

said that the informations hitherto taken had proceeded upon oath. Khân

Jehan Khân had previously declared to General Clavering his readiness to

be so examined; but when called upon by the board, he changed his mind,

and alleged a delicacy, relative to his rank, with regard to the oath.

In this scruple he was strongly supported by Mr. Hastings. He and Mr.

Barwell went further: they contended that the Council had no right to

administer an oath. They must have been very clear in that opinion, when

they resisted the examination on oath of the very person who, if he

could safely swear to Mr. Hastings's innocence, owed it as a debt to his

patron not to refuse it; and of the payment of this debt it was

extraordinary in the patron not only to enforce, but to support, the

absolute refusal.

Although the majority did not acquiesce in this doctrine, they appeared

to have doubts of the prudence of enforcing it by violent means; but,

construing his refusal into a disposition to screen the peculations of

the Governor-General, they treated him as guilty of a contempt of their

board, dismissed him from the service, and recommended another (not the

accuser) to his office.

The reasons on both sides appear in the Appendix. Mr. Hastings accuses

them bitterly of injustice to himself in considering the refusal of this

person to swear as a charge proved. How far they did so, and under what

qualifications, will appear by reference to the papers in the Appendix.

But Mr. Hastings "thanks God that they are not his judges." His great

hold, and not without reason, is the Supreme Court; and he "blesses the

wisdom of Parliament, that constituted a court of judicature at so

seasonable a time, to check the despotism of the new Council." It was

thought in England that the court had other objects than the protection

of the Governor-General against the examinations of those sent out with

instructions to inquire into the peculations of men in power.

Though Mr. Hastings did at that time, and avowedly did, everything to

prevent any inquiry that was instituted merely for the information of

the Court of Directors, yet he did not feel himself thoroughly satisfied

with his own proceedings. It was evident that to them his and Mr.

Barwell's reasonings would not appear very respectful or satisfactory;

he therefore promises to give them full satisfaction at some future

time. In his letter of the 14th of September, 1775, he reiterates a

former declaration, and assures them of his resolution to this purpose

in the strongest terms. "I now _again_ recur to the declaration which I

have before made, that it is my fixed determination to carry _literally_

into execution, and _most fully and liberally explain every circumstance

of my conduct on the points upon which I have been injuriously

arraigned_,--and to afford you the clearest conviction of my own

integrity, and of the propriety of my motives for my declining a present

defence of it."

These motives, as far as they can be discovered, were the violence of

his adversaries, the interested character and views of the accuser, and

the danger of a prosecution in the Supreme Court, which made it prudent

to reserve his defence. These arguments are applicable to any charge.

Notwithstanding these reasons, it is plain by the above letter that he

thought himself bound at some time or other to give satisfaction to his

masters: till he should do this, in his own opinion, he remained in an

unpleasant situation. But he bore his misfortune, it seems, patiently,

with a confidence in their justice for his future relief. He says,

"Whatever evil may fill the _long interval_ which may precede it." That

interval he has taken care to make long enough; for near eight years are

now elapsed, and he has not yet taken the smallest step towards giving

to the Court of Directors any explanation whatever, much less that full

and liberal explanation which he had so repeatedly and solemnly

promised.

It is to be observed, that, though Mr. Hastings talks in these letters

much of his integrity, and of the purity of his motives, and of full

explanations, he nowhere denies the fact of this corrupt traffic of

office. Though he had adjourned his defence, with so much pain to

himself, to so very long a day, he was not so inattentive to the ease of

Khân Jehan Khân as he has shown himself to his own. He had been accused

of corruptly reserving to himself a part of the emoluments of this man's

office; it was a delicate business to handle, whilst his defence stood

adjourned; yet, in a very short time after a majority came into his

hands, he turned out the person appointed by General Clavering, &c, and

replaced the very man with whom he stood accused of the corrupt bargain;

what was worse, he had been charged with originally turning out

another, to make room for this man. The whole is put in strong terms by

the then majority of the Council, where, after charging him with every

species of peculation, they add, "We believe the proofs of his

appropriating four parts in seven of the salary with which the Company

is charged for the Phousdar of Hoogly are such as, whether sufficient or

not to convict him in a court of justice, will not leave the shadow of a

doubt concerning his guilt in the mind of any unprejudiced person. The

salary is seventy-two thousand rupees a year; the Governor takes

thirty-six thousand, and allows Cantoo Baboo four thousand more for the

trouble he submits to in conducting the negotiation with the Phousdar.

This also is the common subject of conversation and derision through the

whole settlement. It is our firm opinion and belief, that the late

Phousdar of Hoogly, a relation of Mahomed Reza Khân, was turned out of

this office merely because his terms were not so favorable as those

which the Honorable Governor-General has obtained from the present

Phousdar. The Honorable Governor-General is pleased to assert, with a

confidential spirit peculiar to himself, that his measures hitherto

stand unimpeached, except by us. We know not how this assertion is to be

made good, unless _the most daring and flagrant prostitution in every

branch_ be deemed an honor to his administration."

The whole style and tenor of these accusations, as well as the nature of

them, rendered Mr. Hastings's first postponing, and afterwards totally

declining, all denial, or even defence or explanation, very

extraordinary. No Governor ought to hear in silence such charges; and

no Court of Directors ought to have slept upon them.

The Court of Directors were not wholly inattentive to this business.

They condemned his act as it deserved, and they went into the business

of his legal right to dissolve the Council. Their opinions seemed

against it, and they gave precise orders against the use of any such

power in future. On consulting Mr. Sayer, the Company's counsel, he was

of a different opinion with regard to the legal right; but he thought,

very properly, that the use of a right, and the manner and purposes for

which it was used, ought not to have been separated. What he thought on

this occasion appears in his opinion transmitted by the Court of

Directors to Mr. Hastings and the Council-General. "But it was as great

a _crime_ to dissolve the Council upon _base and sinister motives_ as it

would be to assume the power of dissolving, if he had it not. I believe

he is _the first governor that ever_ dissolved a council inquiring into

his behavior, when he was innocent. Before he could summon three

councils and dissolve them, he had time fully to consider what would be

the result of such conduct, _to convince everybody, beyond a doubt, of

his conscious guilt_."

It was a matter but of small consolation to Mr. Hastings, during the

painful interval he describes, to find that the Company's learned

counsel admitted that he had legal powers of which he made an use that

raised an universal presumption of his guilt.

Other counsel did not think so favorably of the powers themselves. But

this matter was of less consequence, because a great difference of

opinion may arise concerning the extent of official powers, even among

men professionally educated, (as in this case such a difference did

arise,) and well-intentioned men may take either part. But the use that

was made of it, in systematical contradiction to the Company's orders,

has been stated in the Ninth Report, as well as in many of the others

made by two of your committees.

FOOTNOTES:

[14] Appendix B. No. 1.

[15] Vide Supplement to the Second Report, page 7.

[16] Appendix. B. No. 2.

[17] Vide Appendix B. No. 1.

[18] Appendix B. No. 7.

[19] Appendix B. No. 3 and No. 5.

[20] Appendix B. No 6.

[21] Vide Larkins's Affidavit, Appendix B. No. 5.

[22] Vide Appendix B. No. 1.

[23] Vide Appendix B. No. 1.

[24] Ibid.

[25] Ibid., No. 8.

[26] Ibid., No. 1.

[27] Ibid., No. 4.

[28] Appendix B. No. 8.

[29] Ibid.

[30] Ibid., No. 9.

[31] Appendix B. No. 1.

[32] Ibid.

[33] Ibid., No. 8.

[34] Appendix B. No. 4: The Governor-General's Account of Moneys

received, dated 22d May, 1782. Also, Appendix B. No. 9: The Auditor's

Account of Bonds granted to the Governor-General.

[35] Vide Appendix B. No. 4.

[36] Vide Mr. Hastings's Account, in Appendix B. No. 4.

[37] Vide Hastings's Account, dated 22d May, 1782, in Appendix B. No. 4.

[38] Vide above Appendix, and B. No. 2.

[39] Vide above Appendix.

[40] Vide Appendix B. No. 4.

[41] Vide Appendix B. No. 6.

[42] Ibid., No. 7.

[43] Vide Appendix B. No. 6.

[44] Ibid.

[45] Act 13 Geo. III. cap 63.

[46] Vide Mr. Hastings's Letter of 16 December, 1782, in Appendix B. No.

6.

[47] Vide Appendix B. No. 6.

[48] Vide Appendix B. No. 3.

[49] Ibid.

[50] Ibid.

[51] Vide Appendix B. No. 3.

[52] Vide Appendix B. No. 3.

[53] Ibid.

[54] Ibid., No. 6.

[55] Vide Appendix B. No. 6.

[56] Relative to salt farms, charges of the Ranny of Burdwan, and the

charges of Nundcomar and Munny Begum.

APPENDIX.

B. No. 1.[57]

_Copy of a Letter from the Governor-General to the Court of Directors._

To the Honorable the Court of Directors of the Honorable United East

India Company.

FORT WILLIAM, 29th November, 1780.

HONORABLE SIRS,--

You will be informed by our Consultations of the 26th of June of a very

unusual tender which was made by me to the board on that day, for the

purpose of indemnifying the Company for the extraordinary expense which

might be incurred by supplying the detachment under the command of Major

Camac in the invasion of the Mahratta dominions, which lay beyond the

district of Gohud, and drawing the attention of Mahdajee Sindia, to whom

that country immediately appertained, from General Goddard, while his

was employed in the reduction of Bassein, and in securing the conquests

made by your arms in Guzerat. I was desirous to remove the only

objection which has been or could be ostensibly made to the measure,

which I had very much at heart, as may be easily conceived from the

means which I took to effect it. For the reasons at large which induced

me to propose that diversion, it will be sufficient to refer to my

minute recommending it, and to the letters received from General Goddard

near the same period of time. The subject is now become obsolete, and

all the fair hopes which I had built upon the prosecution of the

Mahratta war, of its termination in a speedy, honorable, and

advantageous peace, have been blasted by the dreadful calamities which

have befallen your arms in the dependencies of your Presidency of Fort

St. George, and changed the object of our pursuit from the

aggrandizement of your power to its preservation. My present reason for

reverting to my own conduct on the occasion which I have mentioned is to

obviate the false conclusions or purposed misrepresentations which may

be made of it, either as an artifice of ostentation or as the effect of

corrupt influence, by assuring you that the money, _by whatever means it

came into your possession_, was not my own,--that I had myself no right

to it, nor would or could have received it, but for the occasion which

prompted me to avail myself of the accidental means which were at that

instant afforded me of accepting and converting it to the property and

use of the Company; and with this brief apology I shall dismiss the

subject.

Something of affinity to this anecdote may appear in the first aspect of

_another_ transaction, which I shall proceed to relate, and of which it

is more immediately my duty to inform you.

You will have been advised, by repeated addresses of this government, of

the arrival of an army at Cuttack, under the command of Chimnajee

Boosla, the second son of Moodajee Boosla, the Rajah of Berar. The

origin and destination of this force have been largely explained and

detailed in the correspondence of the government of Berar, and in

various parts of our Consultations. The minute relation of these would

exceed the bounds of a letter; I shall therefore confine myself to the

principal fact.

About the middle of the last year, a plan of confederacy was formed by

the Nabob Nizam Ali Khân, by which it was proposed, that, while the army

of the Mahrattas, under the command of Mahdajee Sindia and Tuckoojee

Hoolkar, was employed to check the operations of General Goddard in the

West of India, Hyder Ali Khân should invade the Carnatic, Moodajee

Boosla the provinces of Bengal, and he himself the Circars of Rajamundry

and Chicacole.

The government of Berar was required to accept the part assigned it in

this combination, and to march a large body of troops immediately into

Bengal. To enforce the request on the part of the ruling member of the

Mahratta state, menaces of instant hostility by the combined forces were

added by Mahdajee Sindia, Tuckoojee Hoolkar, and Nizam Ali Khân, in

letters written by them to Moodajee Boosla on the occasion. He was not

in a state to sustain the brunt of so formidable a league, and

ostensibly yielded. Such at least was the turn which he gave to his

acquiescence, in his letters to me; and his subsequent conduct has

justified his professions. I was early and progressively acquainted by

him with the requisition, and with the measures which were intended to

be taken, and which were taken, by him upon it. The army professedly

destined for Bengal marched on the Dusserra of the last year,

corresponding with the 7th of October. Instead of taking the direct

course to Bahar, which had been prescribed, it proceeded by varied

deviations and studied delays to Cuttack, where it arrived late in May

last, having performed a practicable journey of three mouths in seven,

and concluded it at the instant commencement of the rains, which of

course would preclude its operations, and afford the government of Berar

a further interval of five months to provide for the part which it would

then be compelled to choose.

In the mean time letters were continually written by the Rajah and his

minister to this government, explanatory of their situation and motives,

proposing their mediation and guaranty for a peace and alliance with the

Peshwa, and professing, without solicitation on our part, the most

friendly disposition towards us, and the most determined resolution to

maintain it. Conformably to these assurances, and the acceptance of a

proposal made by Moodajee Boosla to depute his minister to Bengal for

the purpose of negotiating and concluding the proposed treaty of peace,

application had been made to the Peshwa for credentials to the same

effect.

In the mean time the fatal news arrived of the defeat of your army at

Conjeveram. It now became necessary that every other object should give

place or be made subservient to the preservation of the Carnatic; nor

would the measures requisite for that end admit an instant of delay.

Peace with the Mahrattas was the first object; to conciliate their

alliance, and that of every other power in natural enmity with Hyder

Ali, the next. Instant measures were taken (as our general advices will

inform you) to secure both these points, and to employ the government

of Berar as the channel and instrument of accomplishing them. Its army

still lay on our borders, and in distress for a long arrear of pay, not

less occasioned by the want of pecuniary funds than a stoppage of

communication. An application had been made to us for a supply of money;

and the sum specified for the complete relief of the army was sixteen

lacs. We had neither money to spare, nor, in the apparent state of that

government in its relation to ours, would it have been either prudent or

consistent with our public credit to have afforded it. It was

nevertheless my decided opinion that some aid should be given,--not less

as a necessary relief than as an indication of confidence, and a return

for the many instances of substantial kindness which we had within the

course of the last two years experienced from the government of Berar. I

had an assurance that such a proposal would receive the acquiescence of

the board; but I knew that it would not pass without opposition, and it

would have become public, which might have defeated its purpose.

Convinced of the necessity of the expedient, and assured of the

sincerity of the government of Berar, from evidences of stronger proof

to me than I could make them appear to the other members of the board, I

resolved to adopt it, and take the entire responsibility of it upon

myself. In this mode a less considerable sum would suffice. I

accordingly caused three lacs of rupees to be delivered to the minister

of the Rajah of Berar, resident in Calcutta: he has transmitted it to

Cuttack. Two thirds of this sum I have raised by my own credit, and

shall charge it in my official accounts; the other third I have supplied

from the cash in my hands belonging to the Honorable Company. I have

given due notice to Moodajee Boosla of this transaction, and explained

it to have been a private act of my own, unknown to the other members of

the Council. I have given him expectations of the remainder of the

amount required for the arrears of his army, proportioned to the extent

to which he may put it in my power to propose it as a public gratuity by

his effectual orders for the recall of these troops, or for their

junction with ours.

I hope I shall receive your approbation of what I have done for your

service, and your indulgence for the length of this narrative, which I

could not comprise within a narrower compass.

I have the honor to be, Honorable Sirs,

Your most faithful, obedient,

and humble servant,

WARREN HASTINGS.

B. No. 2.

_An Account of Money paid into the Company's Treasury by the

Governor-General, since the Year 1773._

May April CRs. | CRs.

|

1774 to 1775. For interest bonds 2,175[58]|

For bills of exchange on the |

Court 1,43,937 |

For money refunded by |

order of Court, account |

General Coote's commission 8,418 |

-------- | 1,54,530

|

|

1775-1776. For bills of exchange on the Court | 1,80,480

1776-1777. Do. do. do. | 1,96,800

1777-1778. Do. do. do. | 1,08,000

1778-1779. Do. do. do. | 1,43,000

1779-1780. Do. do. do. | 1,21,600

1780-1781. For bills of exchange 43,000 |

For deposits 2,38,715 |

For interest bonds, at 8 per |

cent 4,75,600 |

For do. 4 per |

cent 1,66,000 |

For Durbar charges 2,32,000 |

-------- | 11,55,315

May, 1782. For interest bonds | 35,000

| ---------

| 20,94,725

(Errors excepted.)

JOHN ANNIS,

_Auditor of Indian Accounts._

EAST INDIA HOUSE, 11th June, 1783.

B. No. 3.

To the Honorable the Secret Committee of the Honorable Court of

Directors.

FORT WILLIAM, 22d May, 1782.

HONORABLE SIRS,--

In a letter which I have had the honor to address you in duplicate, and

of which a triplicate accompanies this, dated 20th January, 1782, I

informed you that I had received the offer of a sum of money from the

Nabob Vizier and his ministers to the nominal amount of ten lacs of

Lucknow siccas, and that bills on the house of Gopaul Doss had been

actually given me for the amount, which I had accepted for the use of

the Honorable Company; and I promised to account with you for the same

as soon as it should be in my power, after the whole sum had come into

my possession. This promise I now perform; and deeming it consistent

with the spirit of it, I have added such _other_ sums as have been

occasionally converted to the Company's property through my means, and

in consequence of the like original destination. Of the second of these

you have been already advised in a letter which I had the honor to

address the Honorable Court of Directors, dated 29th November, 1780.

Both this and the third article were paid immediately to the Treasury,

by my order to the sub-treasurer to receive them on the Company's

account, but never passed through my hands. The three sums for which

bonds were granted were in like manner paid to the Company's Treasury

without passing through my hands; but their appropriation was not

specified. The sum of 58,000 current rupees was received while I was on

my journey to Benares, and applied as expressed in the account.

As to the manner in which these sums have been expended, the reference

which I have made of it, in the accompanying account, to the several

accounts in which they are credited, renders any other specification of

it unnecessary; besides that those accounts either have or will have

received a much stronger authentication than any that I could give to

mine.

Why these sums were taken by me,--why they were, except the second,

quietly transferred to the Company's use,--why bonds were taken for the

first, and not for the rest,--might, were this matter to be exposed to

the view of the public, furnish a variety of conjectures, to which it

would be of little use to reply. Were your Honorable Court to question

me upon these points, I would answer, that the sums were taken for the

Company's benefit at times in which the Company very much needed

them,--that I either chose to conceal the first receipts from public

curiosity by receiving bonds for the amount, or possibly acted without

any studied design which my memory could at this distance of time

verify, and that I did not think it worth my care to observe the same

means with the rest. I trust, Honorable Sirs, to your breasts for a

candid interpretation of my actions, and assume the freedom to add, that

I think myself, on such a subject, and on such an occasion, entitled to

it.

I have the honor to be, Honorable Sirs,

Your most faithful, most obedient,

and most humble servant,

WARREN HASTINGS.

B. No. 4.

_An Account of Sums received on the Account of the Honorable Company of

the Governor-General, or paid to their Treasury by his Order, and

applied to their Service._

-------------------------------------------------+----------------

1780. |

October. |

The following sums were paid into the |

Treasury, and bonds granted for the same, in the |

name of the Governor-General, in whose possession|

the bonds remain, with a declaration upon each |

indorsed and signed by him, that he has no claim |

on the Company for the amount either of principal|

or interest, no part of the latter having been |

received: |

|

One bond, dated the 1st October, |

1780, No. 1539 1,16,000 0 0 |

|

One bond, dated the 2d October, |

1780, No. 1540 1,16,000 0 0 |

|

One bond, dated the 23d November, |

1780, No. 1354 1,74,000 0 0 |

-------------- | 4,06,000 0 0

November. |

Paid into the Treasury, and carried |

to the Governor-General's credit in the |

12th page of the Deposits Journal of 1780-81, |

mohurs of sorts which had been coined in the |

Mint, and produced, as per 358 and 359 |

pages of the Company's General Journal of |

1780-81: |

Gold mohurs, 12,861 12 11, or |

Calcutta siccas 2,05,788 14 9 |

Batta, 16 per cent 32,926 3 6 |

-------------- | 2,38,715 2 3

1781. |

30 April. |

Paid into the Treasury, and credited |

in the 637th page of the Company's General |

Journal, as money received from the |

Governor-General on account of Durbar charges: |

Sicca rupees 2,00,000 0 0 |

Batta, 16 per cent 32,000 0 0 | 2,32,000 0 0

-------------- | --------------

Carried forward | 8,76,715 2 3

Brought forward | 8,76,715 2 3

August. |

Received in cash, and employed in |

defraying my public disbursements, and credited |

in the Governor-General's account of |

Durbar charges for April, 1782 | 58,000 0 0

Produce of the sum mentioned in the |

Governor-General's letter to the Honorable |

Secret Committee, dated 20th January, 1782, |

and credited in the Governor-General's account |

of Durbar charges for April, 1782 | 10,30,275 1 3

|----------------

Current rupees | 19,64,990 3 6

( Errors excepted.)

WARREN HASTINGS.

FORT WILLIAM, 22d May, 1782.

B. No. 5.

I, William Larkins, do make oath and say, that the letter and account to

which this affidavit is affixed were written by me at the request of the

Honorable Warren Hastings, Esquire, on the 22d May, 1782, from rough

draughts written by himself in my presence; that the cover of the letter

was sealed up by him in my presence, and was then intended to have been

transmitted to England by the "Lively," when that vessel was first

ordered for dispatch; and that it has remained closed until this day,

when it was opened for the express purpose of being accompanied by this

affidavit.

So help me God.

WILLIAM LARKINS.

CALCUTTA, 16th December 1782.

Sworn this 16th day of December, 1782, before me,

J. HYDE.

B. No. 6.

To the Honorable the Secret Committee of the Honorable Court of

Directors.

FORT WILLIAM, 16 December, 1782.

HONORABLE SIRS,--

The dispatch of the "Lively" having been protracted by various causes

from time to time, the accompanying address, which was originally

designed and prepared for that dispatch, (no other conveyance since

occurring,) has of course been thus long detained. The delay is of no

public consequence; but it has produced a situation which with respect

to myself I regard as unfortunate, because it exposes me to the meanest

imputation from the occasion which the late Parliamentary Inquiries have

since furnished, but which were unknown when my letter was written, and

written in the necessary consequence of a promise made to that effect in

a former letter to your Honorable Committee, dated 20th January last.

However, to preclude the possibility of such reflections from affecting

me, I have desired Mr. Larkins, who was privy to the whole transaction,

to affix to the letter his affidavit of the date in which it was

written. I own I feel most sensibly the mortification of being reduced

to the necessity of using such precautions to guard my reputation from

dishonor. If I had at any time possessed that degree of confidence from

my immediate employers which they never withheld from the meanest of my

predecessors, I should have disdained to use these attentions. How I

have drawn on me a different treatment I know not; it is sufficient that

I have not merited it: and in the course of a service of thirty-two

years, and ten of these employed in maintaining the powers and

discharging the duties of the first office of the British government in

India, that Honorable Court ought to know whether I possess the

integrity and honor which are the first requisites of such a station. If

I wanted these, they have afforded me but too powerful incentives to

suppress the information which I now convey to them through you, and to

appropriate to my own use the sums which I have already passed to their

credit, by the unworthy, and, pardon me if I add, dangerous, reflections

which they have passed upon me for the first communication of this kind:

and your own experience will suggest to you, that there are persons who

would profit by such a warning.

Upon the whole of these transactions, which to you, who are accustomed

to view business in an official and regular light, may appear

unprecedented, if not improper, I have but a few short remarks to

suggest to your consideration.

If I appear in any unfavorable light by these transactions, I resign the

common and legal security of those who commit crimes or errors. I am

ready to answer every particular question that may be put against

myself, upon honor or upon oath.

The sources from which these reliefs to the public service have come

would never have yielded them to the Company publicly; and the

exigencies of your service (exigencies created by the exposition of your

affairs, and faction in your councils) required those supplies.

I could have concealed them, had I had a wrong motive, from yours and

the public eye forever; and I know that the difficulties to which a

spirit of injustice may subject me for my candor and avowal are greater

than any possible inconvenience that could have attended the

concealment, except the dissatisfaction of my own mind. These

difficulties are but a few of those which I have suffered in your

service. The applause of my own breast is my surest reward, and was the

support of my mind in meeting them: your applause, and that of my

country, are my next wish in life.

I have the honor to be, Honorable Sirs,

Your most faithful, most obedient,

and most humble servant,

WARREN HASTINGS.

B. No. 7.

_Extract of the Company's General Letter to Bengal, dated the 25th

January, 1782._

Par. 127. We have received a letter from our Governor-General,

dated the 29th of November, 1780, relative to an unusual tender and

advance of money made by him to the Council, as entered on your

Consultation of the 26th of June, for the purpose of indemnifying the

Company from the extraordinary charge which might be incurred by

supplying the detachment under the command of Major Camac in the

invasion of the Mahratta dominions, which lay beyond the district of

Gohud, and thereby drawing the attention of Mahdajee Sindia (to whom the

country appertained) from General Goddard, while the General was

employed in the reduction of Bassein, and in securing the conquests

made in the Guzerat country; and also respecting the sum of three lacs

of rupees advanced by the Governor-General for the use of the army under

the command of Chimnajee Boosla without the authority or knowledge of

the Council; with the reasons for taking these extraordinary steps under

the circumstances stated in his letter.

128. In regard to the first of these transactions, we readily conceive,

that, in the then state of the Council, the Governor-General might be

induced to temporary secrecy respecting the members of the board, not

only because he might be apprehensive of opposition to the proposed

application of the money, but, perhaps, because doubts might have arisen

concerning the propriety of appropriating it to the Company's use on any

account; but it does _not appear to us_ that there could be any real

necessity for delaying to communicate to us immediate information of the

channel by which the money came into his possession, with a complete

illustration of the cause or causes of so extraordinary an event.

129. Circumstanced as affairs were at the moment, it appears that the

Governor-General had the measure much at heart, and judged it absolutely

necessary. The means proposed of defraying the extra expense were very

extraordinary; and the money, as we conceive, must have come into his

hands by an unusual channel: and when more complete information comes

before us, we shall give our sentiments fully upon the whole

transaction.

130. In regard to the application of the Company's money to the army of

Chimnajee Boosla by the sole authority of the Governor-General, he knew

that it was entirely at his own risk, and he has taken the

responsibility upon himself; nothing but the most urgent necessity

could warrant the measure; nor can anything short of full proof of such

necessity, and of the propriety and utility of the extraordinary step

taken on the occasion, entitle the Governor-General to the approbation

of the Court of Directors; and therefore, as in the former instance

relative to the sum advanced and paid into our Treasury, we must also

for the present _suspend_ our judgment respecting the money sent to the

Berar army, without approving it in the least degree, or proceeding to

censure our Governor-General for this transaction.

B. No. 8.

_Extract of Bengal Secret Consultations, the 9th January, 1781._

The following letter from the Governor-General having been circulated,

and the request therein made complied with, an order on the Treasury

passed accordingly.

HONORABLE SIR AND SIRS,--

Having had occasion to disburse the sum of three lacs of sicca rupees on

account of secret services, which having been advanced from my own

private cash, I request that the same may be repaid to me in the

following manner:--A bond to be granted me upon the terms of the second

loan, bearing date from the 1st October, for one lac of sicca rupees; a

bond to be granted me upon the terms of the first loan, bearing date

from the 1st October, for one lac of sicca rupees; a bond to be granted

me upon the terms of the first loan, bearing date from the 2d October,

for one lac of sicca rupees.

I have the honor to be, &c., &c.,

(Signed) WARREN HASTINGS.

Fort William, 5th January, 1781.

B. No. 9.

_An Account of Bonds granted to the Governor-General, from 1st January,

1779, to 31st May, 1782, with Interest paid or credited thereon._

-------------------+----------+------------------+------------------

When paid into the | Sum. | Date of Bond. | Rate of Interest.

Treasury. | | |

-------------------+----------+------------------+------------------

| CRs. | |

23d Nov., 1780 | 1,74,000 | 23d Nov., 1780 | at 8 per cent.

15th Dec. | 69,600 | 15th Dec. | Do.

15th Jan., 1781 | 1,16,000 | 1st Oct., 1780 | Do.

Do. | 1,16,000 | 2d Do. | Do.

Do. | 1,16,000 | 1st Do. | 4 per cent.

17th March | 50,000 | 17th Mar., 1781 | Do.

8th May, 1782 | 20,000 | 15th Sept., 1781 | 8 per cent.

Do. | 15,000 | 8th Dec., 1781 | Do.

|----------| |

| 6,76,600 | |

There does not appear to have been any interest paid on the above bonds

to 31st May, 1782, the last accounts received. In the Interest Books,

1780-81, the last received, the Governor-General has credit for interest

on the first six to April, 1781, to the amount of CRs. 21,964 12 8.

(Errors excepted.)

JOHN ANNIS,

_Auditor of Indian Accounts._

EAST INDIA HOUSE, 5th June, 1783.

FOOTNOTES:

[57] As the Appendixes originally printed with the foregoing Reports,

and which consist chiefly of official documents, would have swelled this

volume to an enormous size, it has been thought proper to omit them,

with the exception of the first nine numbers of the Appendix B. to the

Eleventh Report, the insertion of which has been judged necessary for

the elucidation of the subject-matter of that Report.

[58] {Received 19th May,

{Cancelled 30th July, 1774.

ARTICLES OF CHARGE

OF

HIGH CRIMES AND MISDEMEANORS

AGAINST

WARREN HASTINGS, ESQUIRE

LATE GOVERNOR-GENERAL OF BENGAL:

PRESENTED TO THE HOUSE OF COMMONS

IN APRIL AND MAY, 1786.

ARTICLES I.-VI.

ARTICLES OF CHARGE

AGAINST

WARREN HASTINGS, ESQ.,

LATE GOVERNOR-GENERAL OF BENGAL.

I.--ROHILLA WAR.

That the Court of Directors of the East India Company, from a just sense

of the danger and odium incident to the extension of their conquests in

the East Indies, and from an experience of the disorders and corrupt

practices which intrigues and negotiations to bring about revolutions

among the country powers had produced, did positively and repeatedly

direct their servants in Bengal not to engage in any offensive war

whatsoever. That the said Court laid it down as _an invariable maxim,

which ought ever to be maintained, that they were to avoid taking part

in the political schemes of any of the country princes_,--and did, in

particular, order and direct that they should not engage with a certain

prince called Sujah ul Dowlah, Nabob of Oude, and Vizier of the Empire,

in any operations beyond certain limits in the said orders specially

described.

That Warren Hastings, Esquire, then Governor of Fort William in Bengal,

did, with other members of the Council, declare his clear understanding

of the true intent and meaning of the said positive and repeated orders

and injunctions,--did express to the Court of Directors his approbation

of the policy thereof,--did declare that he adopted the same _with

sincerity and satisfaction_, and that he was _too well aware of the

ruinous tendency of all schemes of conquest ever to adopt them, or ever

to depart from the absolute line of self-defence, unless impelled to it

by the most obvious necessity_,--did signify to the Nabob of Oude the

said orders, and his obligation to yield punctual obedience

thereto,--and did solemnly engage and promise to the Court of Directors,

with the _unanimous concurrence_ of the whole Council, "that no object

or consideration should either tempt or compel him to pass the political

line which they [the Directors] had laid down for his operations with

the Vizier," assuring the Court of Directors that he "scarce saw a

possible advantage which could compensate the hazard and expense to be

incurred by a contrary conduct,"--that he did frequently repeat the same

declarations, or declarations to the same effect, particularly in a

letter to the Nabob himself, of the 22d of November, 1773, in the

following words: "The commands of my superiors are, as I have repeatedly

informed you, peremptory, that I shall not suffer their arms to be

carried beyond the line of their own boundaries, and those of your

Excellency, their ally."

That the said Warren Hastings, in direct contradiction to the said

orders, and to his own sense of their propriety and coercive authority,

and in breach of his express promises and engagements, did, in

September, 1773, enter into a private engagement with the said Nabob of

Oude, who was the special object of the prohibition, to furnish him, for

a stipulated sum of money to be paid to the East India Company, with a

body of troops for the declared purpose of "thoroughly extirpating the

nation of the Rohillas": a nation from whom the Company had never

received, or pretended to receive or apprehend, any injury whatsoever;

whose country, in the month of February, 1773, by an unanimous

resolution of the said Warren Hastings and his Council, was included in

the line of defence against the Mahrattas; and from whom the Nabob never

complained of an aggression or act of hostility, nor pretended a

distinct cause of quarrel, other than the non-payment of a sum of money

in dispute between him and that people.

That, supposing the sum of money in question to have been strictly due

to the said Nabob by virtue of any engagement between him and the

Rohilla chiefs, the East India Company, or their representatives, were

not parties to that engagement, or guaranties thereof, nor bound by any

obligation whatever to enforce the execution of it.

That, previous to the said Warren Hastings's entering into the agreement

or bargain aforesaid to extirpate the said nation, he did not make, or

cause to be made, a due inquiry into the validity of the sole pretext

used by the said Nabob; nor did he give notice of the said claims of

debt to the nation of the Rohillas, in order to receive an explanation

on their part of the matter in litigation; nor did he offer any

mediation, nor propose, nor afford an opportunity of proposing, an

agreement or submission by which the calamities of war might be avoided,

as, by the high state in which the East India Company stood as a

sovereign power in the East, and the honor and character it ought to

maintain, as well as by the principles of equity and humanity, and by

the true and obvious policy of uniting the power of the Mahometan

princes against the Mahrattas, he was bound to do. That, instead of

such previous inquiry, or tender of good offices, the said Warren

Hastings did stimulate the ambition and ferocity of the Nabob of Oude to

the full completion of the inhuman end of the said unjustifiable

enterprise, by informing him "that it would be absolutely necessary to

persevere in it until it should be accomplished"; pretending that a fear

of the Company's displeasure was his motive for annexing the

accomplishment of the enterprise as a condition of his assistance, and

asserting "that he could not hazard or answer for the displeasure of the

Company, his masters, if they should find themselves involved in a

_fruitless_ war, or in an expense for prosecuting it,"--a pretence

tending to the high dishonor of the East India Company, as if the gain

to be acquired was to reconcile that body to the breach of their own

orders prohibiting all such enterprises;--and in order further to

involve the said Nabob beyond the power of retreating, he did, in the

course of the proceeding, purposely put the said Nabob under

difficulties in case he should decline that war, and did oblige him to

accept even the permission to relinquish the execution of this unjust

project as a favor, and _to make concessions for it_; thereby acting as

if the Company were principals in the hostility; and employing for this

purpose much double dealing and divers unworthy artifices to entangle

and perplex the said Nabob, but by means of which he found himself (as

he has entered it on record) _hampered and embarrassed in a particular

manner_.

That the said compact for offensive alliance in favor of a great prince

against a considerable nation was not carried on by projects and

counter-projects in writing; nor were the articles and conditions

thereof formed into any regular written instrument, signed and sealed

by the parties; but the whole (both the negotiation and the compact of

offensive alliance against the Rohillas) was a mere verbal engagement,

the purport and conventions whereof nowhere appeared, except in

subsequent correspondence, in which certain of the articles, as they

were stated by the several parties, did materially differ: a proceeding

new and unprecedented, and directly leading to mutual misconstruction,

evasion, and ill faith, and tending to encourage and protect every

species of corrupt, clandestine practice. That, at the time when this

private verbal agreement was made by the said Warren Hastings with the

Nabob of Oude, a public ostensible treaty was concluded by him with the

said Nabob, in which there is no mention whatever of such agreement, or

reference whatever to it: in defence of which omission, it is asserted

by the said Warren Hastings, that _the multiplication of treaties

weakens their efficacy, and therefore they should be reserved only for

very important and permanent obligations_; notwithstanding he had

previously declared to the said Nabob, "that the points which he had

proposed required much consideration, and the previous ratification of a

formal agreement, before he could consent to them." That the whole of

the said verbal agreement with the Nabob of Oude in his own person,

without any assistance on his part, was carried on and concluded by the

said Warren Hastings alone, without any person who might witness the

same, without the intervention even of an interpreter, though he

confesses that he spoke the Hindostan language _imperfectly_, and

although he had with him at that time and place several persons high in

the Company's service and confidence, namely, the commander-in-chief of

their forces, two members of their Council, and the Secretary to the

Council, who were not otherwise acquainted with the proceedings between

him and the said Nabob than by such communications as he thought fit to

make to them.

That the object avowed by the said Warren Hastings, and the motives

urged by him for employing the British arms in the utter extirpation of

the Rohilla nation, are stated by himself in the following terms:--"The

acquisition of forty lacs of rupees to the Company, and of so much

specie added to the exhausted currency of our provinces;--that it would

give wealth to the Nabob of Oude, of which we should participate;--that

the said Warren Hastings _should_ always be ready to profess that he did

reckon the probable acquisition of wealth among his reasons for taking

up arms against his _neighbors_;--that it would ease the Company of a

considerable part of their military expense, and preserve their troops

from inaction and relaxation of discipline;--that the weak state of the

Rohillas promised an easy conquest of them;--and, finally, that such was

his idea of the Company's distress at home, added to his knowledge of

their wants abroad, that he should have been glad of _any_ occasion to

employ their forces which saved so much of their pay and expenses."

That, in the private verbal agreement aforesaid for offensive war, the

said Warren Hastings did transgress the bounds of the authority given

him by his instructions from the Council of Fort William, which had

limited his powers to such compacts "as were consistent with the spirit

of the Company's orders"; which Council he afterwards persuaded, and

with difficulty drew into an acquiescence in what he had done.

That the agreement to the effect aforesaid was settled in the said

secret conferences before the 10th of September, 1773; but the said

Warren Hastings, concealing from the Court of Directors a matter of

which it was his duty to afford them the earliest and fullest

information, did, on the said 10th of September, 1773, write to the

Directors, and dispatched his letter over land, giving them an account

of the public treaty, but taking not the least notice of his agreement

for a mercenary war against the nation of the Rohillas.

That, in order to conceal the true purport of the said clandestine

agreement the more effectually, and until he should find means of

gaining over the rest of the Council to a concurrence in his

disobedience of orders, he entered a minute in the Council books, giving

a false account of the transaction; in which minute he represented that

the Nabob had indeed _proposed_ the design aforesaid, and that he, the

said Warren Hastings, _was pleased that he urged the scheme of this

expedition no further_, when in reality and truth he had absolutely

consented to the said enterprise, and had engaged to assist him in it,

which he afterwards admitted, and confessed that he did act in

consequence of the same.

That the said Warren Hastings and his Council were sensible of the true

nature of the enterprise in which they had engaged the Company's arms,

and of the heavy responsibility to which it would subject himself and

the Council,--"the personal hazard they, the Council, run, in

undertaking so _uncommon_ a measure without _positive_ instructions, at

their own risk, with the eyes of the whole nation on the affairs of the

Company, and the passions and prejudices of almost every man in England

inflamed against the conduct of the Company and the character of its

servants"; yet they engaged in the very practice which had brought such

odium on the Company, and on the character of its servants, though they

further say that they had continually before _their eyes the dread of

forfeiting the favor of their employers_, and becoming the "objects of

_popular_ invectives." The said Warren Hastings himself says, at the

very time when he proposed the measure, "I must confess I entertain some

doubts as to its expediency at this time, from the circumstances of the

_Company_ at home, exposed to _popular_ clamor, and all its measures

liable to be canvassed in _Parliament_, their charter drawing to a

close, and his Majesty's ministers unquestionably ready to take

advantage of every unfavorable circumstance in the negotiations of its

renewal." All these considerations did not prevent the said Warren

Hastings from making and carrying into execution the said mercenary

agreement for a sum of money, the payment of which the Nabob endeavored

to evade on a construction of the verbal treaty, and was so far from

being insisted on, as it ought to have been, by the said Warren

Hastings, that, when, after the completion of the service, the

commander-in-chief was directed to make a demand of the money, the agent

of the said Warren Hastings at the same time assured the Nabob "that the

demand was nothing more than matter of form, common, and even necessary,

in all public transactions, and that, although the board considered the

claim of the government literally due, it was not the intention of

administration to prescribe to his Excellency _the mode, or even

limits, of payment_." Nor was any part of the money recovered, until the

establishment of the Governor-General and Council by act of Parliament,

and their determination to withdraw the brigade from the Nabob's

service,--the Resident at his court, appointed by the said Warren

Hastings, having written, _that he had experienced much duplicity and

deceit in most of his transactions with his Excellency_; and the said

Nabob and his successors falling back in other payments in the same or

greater proportion as he advanced in the payment of this debt, the

consideration of lucre to the Company, the declared motive to this

shameful transaction, totally failed, and no money in effect and

substance (as far as by any account to be depended on appears) has been

obtained.

That the said Nabob of Oude did, in consequence of the said agreement,

and with the assistance of British troops, which were ordered to march

and subjected to his disposal by the said Warren Hastings and the

Council, unjustly enter into and invade the country of the Rohillas, and

did there make war in a barbarous and inhuman manner, "by an abuse of

victory," "by the unnecessary destruction of the country," "by a wanton

display of violence and oppression, of inhumanity and cruelty," and "by

the sudden expulsion and casting down of an whole race of people, to

whom the slightest benevolence was denied." When prayer was made not to

dishonor the Begum (a princess of great rank, whose husband had been

killed in battle) and other women, by _dragging them about the country,

to be loaded with the scoffs of the Nabob's rabble, and otherwise still

worse used_, the Nabob refused to listen to the entreaties of a British

commander-in-chief in their favor; and the said women of high rank were

exposed not only to the vilest personal indignities, but even to

absolute want: and these transactions being by Colonel Champion

communicated to the said Warren Hastings, instead of commendations for

his intelligence, and orders to redress the said evils, and to prevent

the like in future, by means which were suggested, and which appear to

have been proper and feasible, he received a reprimand from the said

Warren Hastings, who declared that we had no authority to control the

conduct of the Vizier in the treatment of his subjects; and that Colonel

Champion desisted from making further representations on this subject to

the said Warren Hastings, being apprehensive of having already run some

risk of displeasing by perhaps a too free communication of sentiments.

That, in consequence of the said proceedings, not only the eminent

families of the chiefs of the Rohilla nation were either cut off or

banished, and their wives and offspring reduced to utter ruin, but the

country itself, heretofore distinguished above all others for the extent

of its cultivation as a _garden_, not having _one spot_ in it of

_uncultivated_ ground, and from being _in the most flourishing state

that a country could be_, was by the inhuman mode of carrying on the

war, and the ill government during the consequent usurpation, reduced to

a state of great decay and depopulation, in which it still remains.

That the East India Company, having had reason to conceive, that, for

the purpose of concealing corrupt transactions, their servants in India

had made unfair, mutilated, and garbled communications of

correspondence, and sometimes had wholly withheld the same, made an

order in their letter of the 23d of March, 1770, in the following

tenor:--"The Governor singly shall correspond with the country powers;

but _all_ letters, before they shall be by him sent, must be

communicated to the other members of the Select Committee, and receive

their approbation; and also _all_ letters _whatsoever_ which may be

received by the Governor, in answer to or in course of correspondence,

shall likewise be laid before the said Select Committee for their

information and consideration"; and that in their instructions to their

Governor-General and Council, dated 30th March, 1774, they did repeat

their orders to the same purpose and effect.

That the said Warren Hastings did not obey, as in duty he was bound to

do, the said standing orders; nor did communicate all his correspondence

with Mr. Middleton, the Company's agent at the court of the Subah of

Oude, or with Colonel Champion, the commander-in-chief of the Company's

forces in the Rohilla war, to the Select Committee: and when afterwards,

that is to say, on the 25th of October, 1774, he was required by the

majority of the Council appointed by the act of Parliament of 1773,

whose opinion was by the said act directed to be taken as the act of the

whole Council, to produce _all_ his correspondence with Mr. Middleton

and Colonel Champion for the direction of their future proceedings

relative to the obscure, intricate, and critical transaction aforesaid,

he did positively and pertinaciously refuse to deliver any other than

such parts of the said correspondence as he thought convenient, covering

his said illegal refusal under general vague pretences of secrecy and

danger from the communication, although the said order and instruction

of the Court of Directors above mentioned was urged to him, and although

it was represented to him by the said Council, that they, as well as

he, were bound by an oath of secrecy: which refusal to obey the orders

of the Court of Directors (orders specially, and on weighty grounds of

experience, pointed to cases of this very nature) gave rise to much

jealousy, and excited great suspicions relative to the motives and

grounds on which the Rohilla war had been undertaken.

That the said Warren Hastings, in the grounds alleged in his

justification of his refusal to communicate to his colleagues in the

Superior Council his correspondence with Mr. Middleton, the Company's

Resident at Oude, was guilty of a new offence, arrogating to himself

unprecedented and dangerous powers, on principles utterly subversive of

all order and discipline in service, and introductory to corrupt

confederacies and disobedience among the Company's servants; the said

Warren Hastings insisting that Mr. Middleton, the Company's covenanted

servant, the public Resident for transacting the Company's affairs at

the court of the Subah of Oude, and as such receiving from the Company a

salary for his service, was no other than the _official agent_ of him,

the said Warren Hastings, and that, being such, he was not obliged to

communicate his correspondence.

That the Court of Directors, and afterwards a General Court of the

Proprietors of the East India Company, (although the latter showed

favorable dispositions towards the said Warren Hastings, and expressed,

but without assigning any ground or reason, the highest opinion of his

services and integrity,) did unanimously condemn, along with his conduct

relative to the Rohilla treaty and war, his refusal to communicate his

whole correspondence with Mr. Middleton to the Superior Council: yet the

said Warren Hastings, in defiance of the opinion of the Directors, and

the unanimous opinion of the General Court of the said East India

Company, as well as the precedent positive orders of the Court of

Directors, and the injunctions of an act of Parliament, has, from that

time to the present, never made any communication of the whole of his

correspondence to the Governor-General and Council, or to the Court of

Directors.

II.--SHAH ALLUM.

That, in a solemn treaty of peace, concluded the 16th of August, 1765,

between the East India Company and the late Nabob of Oude, Sujah ul

Dowlah, and highly approved of, confirmed, and ratified by the said

Company, it is agreed, "that the King Shah Allum shall remain in full

possession of Corah, and such part of the province of Allahabad as he

now possesses, which are ceded to his Majesty as a royal demesne for the

support of his dignity and expenses." That, in a separate agreement,

concluded at the same time, between the King Shah Allum and the then

Subahdar of Bengal, under the immediate security and guaranty of the

English Company, the faith of the Company was pledged to the said King

for the annual payment of twenty-six lac of rupees for his support out

of the revenues of Bengal; and that the said Company did then receive

from the said King a grant of the duanné of the provinces of Bengal,

Bahar, and Orissa, on the express condition of their being security for

the annual payment above mentioned. That the East India Company have

held, and continue to hold, the duanné so granted, and for some years

have complied with the conditions on which they accepted of the grant

thereof, and have at all times acknowledged that they held the duanné

_in virtue of the Mogul's grants_. That the said Court of Directors, in

their letter of the 30th June, 1769, to Bengal, declared, "that they

esteemed themselves bound by treaty to protect the King's person, and to

secure him the possession of the Corah and Allahabad districts"; and

supposing an agreement should be made respecting these provinces between

the King and Sujah ul Dowlah, the Directors then said, "that they should

be subject to no further claim or requisition from the King, excepting

for the stipulated tribute for Bengal, which they [the Governor and

Council] were to pay to his agent, or remit to him in such manner as he

might direct."

That, in the year 1772, the King Shah Allum, who had hitherto resided at

Allahabad, trusting to engagements which he had entered into with the

Mahrattas, quitted that place, and removed to Delhi; but, having soon

quarrelled with those people, and afterwards being taken prisoner, had

been treated by them with very great disrespect and cruelty. That, among

other instances of their abuse of their immediate power over him, the

Governor and Council of Bengal, in their letter of the 16th of August,

1773, inform the Court of Directors that he had been _compelled, while a

prisoner in their hands, to grant sunnuds for the surrender of Corah and

Allahabad to them_; and it appears from sundry other minutes of their

own that the said Governor and Council did at all times consider the

surrender above mentioned as _extorted_ from the King, and

_unquestionably an act of violence_, which could not alienate or impair

his right to those provinces, and that, when they took possession

thereof, it was at the request of the King's Naib, or viceroy, who put

them under the Council's _protection_. That on this footing they were

accepted by the said Warren Hastings and his Council, and for some time

considered by them as a deposit committed to their care by a prince to

whom the possession thereof was particularly guarantied by the East

India Company. In their letter of the 1st of March, 1773, they (the said

Warren Hastings and his Council) say, "In no shape can this compulsatory

cession by the King release us from the obligation we are under to

defend the provinces which we have so particularly guarantied to him."

But it appears that they soon adopted other ideas and assumed other

principles concerning this object. In the instructions, dated the 23d of

June, 1773, which the Council of Fort William gave to the said Warren

Hastings, previous to his interview with the Nabob Sujah ul Dowlah at

Benares, they say, that, "while the King continued at Delhi, whither he

proceeded in opposition to their most strenuous remonstrances, they

should certainly consider the engagements between him and the Company as

dissolved by his alienation from them and their interest; that the

possession of so remote a country could never be expected to yield any

profit to the Company, and the defence of it must require a perpetual

aid of their forces": yet in the same instructions they declare their

opinion, that, "if the King should make overtures to renew his former

connection, _his right to reclaim the districts of Corah and Allahabad

could not with propriety be disputed_," and they authorize the said

Warren Hastings to restore them to him _on condition that he should

renounce his claim to the annual tribute of twenty-six lac of rupees_,

herein before mentioned, _and to the arrears which might be due_,

thereby acknowledging the justice of a claim which they determined not

to comply with but in return for the surrender of another equally

valid;--that, nevertheless, in the treaty concluded by the said Warren

Hastings with Sujah ul Dowlah on the 7th of September, 1773, it is

asserted, that his Majesty, (meaning the King Shah Allum,) "having

abandoned the districts of Corah and Allahabad, and given a sunnud for

Corah and Currah to the Mahrattas, had thereby forfeited his right to

the said districts," although it was well known to the said Warren

Hastings, and had been so stated by him to the Court of Directors, that

this surrender on the part of the King had been extorted from him by

violence, while he was a prisoner in the hands of the Mahrattas, and

although it was equally well known to the said Warren Hastings that

there was nothing in the original treaty of 1765 which could restrain

the King from changing the place of his residence, consequently that his

removal to Delhi could not occasion a forfeiture of his right to the

provinces secured to him by that treaty.

That the said Warren Hastings, in the report which he made of his

interview and negotiations with Sujah ul Dowlah, dated the 4th of

October, 1773, declared, "that the administration would have been

culpable in the highest degree in retaining possession of Corah and

Allahabad _for any other purpose than that of making an advantage by the

disposal of them_," and therefore he had ceded them to the Vizier for

fifty lac of rupees: a measure for which he had no authority whatever

from the King Shah Allum, and in the execution of which no reserve

whatever was made in favor of the rights of that prince, nor any care

taken of his interests.

That the sale of these provinces to Sujah Dowlah involved the East India

Company in a triple breach of justice; since by the same act they

violated a treaty, they sold the property of another, and they alienated

a deposit committed to their friendship and good faith, and as such

accepted by them. That a measure of this nature is not to be defended on

motives of policy and convenience, supposing such motives to have

existed, without a total loss of public honor, and shaking all security

in the faith of treaties; but that in reality the pretences urged by the

said Warren Hastings for selling the King's country to Sujah Dowlah were

false and invalid. It could not strengthen our alliance with Sujah ul

Dowlah; since, paying a price for a purchase, he received no favor and

incurred no obligation. It did not free the Company from all the dangers

attending either a remote property or a remote connection; since, the

moment the country in question became part of Sujah Dowlah's dominions,

it was included in the Company's former guaranty of those dominions, and

in case of invasion the Company were obliged to send part of their army

to defend it at the requisition of the said Sujah Dowlah; and if the

remote situation of those provinces made the defence of them difficult

and dangerous, much more was it a difficult and dangerous enterprise to

engage the Company's force in an attack and invasion of the Rohillas,

whose country lay at a much greater distance from the Company's

frontier,--which, nevertheless, the said Warren Hastings agreed to and

undertook at the very time when, under pretence of the difficulty of

defending Corah and Allahabad, he sold those provinces to Sujah Dowlah.

It did not relieve the Company from the _expense_ of defending the

country; since the revenues thereof far exceeded the subsidy to be paid

by Sujah Dowlah, and these revenues justly belonged to the Company as

long as the country continued under their protection, and would have

answered the expense of defending it. Finally, that the sum of fifty lac

of rupees, stipulated with the said Sujah Dowlah, was inadequate to the

value of the country, the annual revenues of which were stated at

twenty-five lac of rupees, which General Sir Robert Barker, then

commander-in-chief of the Company's forces, affirms _was certain, and

too generally known to admit of a doubt_.

That the King Shah Allum received for some years the annual tribute of

twenty-six lac of rupees above mentioned, and was entitled to continue

to receive it by virtue of an engagement deliberately, and for an

adequate consideration, entered into with him by the Company's servants,

and approved of and ratified by the Company themselves;--that this

engagement was absolute and unconditional, and did neither express nor

suppose any case in which the said King should forfeit or the Company

should have a right to resume the tribute;--that, nevertheless, the said

Warren Hastings and his Council, immediately after selling the King's

country to Sujah Dowlah, resolved to withhold, and actually withheld,

the payment of the said tribute, of which the King Shah Allum has never

since received any part;--that this resolution of the Council is not

justified even by themselves on principles of right and justice, but by

arguments of policy and convenience, by which the best founded claims

of right and justice may at all times be set aside and defeated. "They

judged it highly impolitic and unsafe to answer the drafts of the King,

until they were satisfied of his amicable intentions, and those of his

new allies." But neither had they any reason to question the King's

amicable intentions, nor was he pledged to answer for those of the

Mahrattas; his trusting to the good faith of that people, and relying on

their assistance to reinstate him in the possession of his capital,

might have been imprudent and impolitic, but these measures, however

ruinous to himself, indicated no enmity to the English, nor were they

productive of any effects injurious to the English interests. And it is

plain that the said Warren Hastings and his Council were perfectly aware

that their motives or pretences for withholding the tribute were too

weak to justify their conduct, having principally insisted on the

reduced state of their treasury, which, as they said, _rendered it

impracticable to comply with those payments_. The _right_ of a creditor

does not depend on the circumstances of the debtor: on the contrary, the

plea of inability includes a virtual acknowledgment of the debt; since,

if the creditor's right were denied, the plea would be superfluous.

That the East India Company, having on their part violated the

engagements and renounced the conditions on which they received and have

hitherto held and enjoyed the duanné of Bengal, Bahar, and Orissa from

the King Shah Allum, have thereby forfeited all right and title to the

said duanné arising from the said grant, and that it is free and open to

the said King to resume such grant, and to transfer it to any other

prince or state;--that, notwithstanding any distress or weakness to

which he may be actually reduced, his lawful authority, as sovereign of

the Mogul Empire, is still acknowledged in India, and that his grant of

the duanné would sufficiently authorize and materially assist any prince

or state that might attempt to dispossess the East India Company

thereof, since it would convey a right which could not be disputed, and

to which nothing but force could be opposed. Nor can these opinions be

more strongly expressed than they have been lately by the said Warren

Hastings himself, who, in a minute recorded the 1st of December, 1784,

has declared, that, "fallen as the House of Timur is, it is yet the

relic of the most illustrious line of the Eastern world; that _its

sovereignty is universally acknowledged_, though the substance of it no

longer exists; and that the Company itself derives its constitutional

dominion from its ostensible bounty."

That the said Warren Hastings by this declaration has renounced and

condemned the principle on which he avowedly acted towards the Mogul in

the year 1773, when he denied that the sunnuds or grants of the Mogul,

if they were in the hands of another nation, would avail them

anything,--and when he declared "that the sword which gave us the

dominion of Bengal must be the instrument of its preservation, and that,

if it should ever cease to be ours, the next proprietor would derive his

_right_ and possession from the same _natural charter_." That the said

Warren Hastings, to answer any immediate purpose, adopts any principle

of policy, however false or dangerous, without any regard to former

declarations made, or to principles avowed on other occasions by

himself; and particularly, that in his conduct to Shah Allum he first

maintained that the grants of that prince were of no avail,--that we

held the dominion of Bengal by the sword, which he has falsely declared

the source of _right_, and the _natural charter_ of dominion,--whereas

at a later period he has declared that the sovereignty of the family of

Shah Allum is universally acknowledged, and that the Company itself

derives its constitutional dominion from their ostensible bounty.

III.--BENARES.

PART I.

RIGHTS AND TITLES OF THE RAJAH OF BENARES.

I. That the territory of Benares is a fruitful, and has been, not long

since, an orderly, well-cultivated, and improved province, of great

extent; and its capital city, as Warren Hastings, Esquire, has informed

the Court of Directors, in his letter of the 21st of November, 1781, "is

highly revered by the natives of the Hindoo persuasion, so that many who

have acquired independent fortunes retire to close their days in a place

so eminently distinguished for its sanctity"; and he further acquaints

the Directors, "that it may rather be considered as the seat of the

Hindoo religion than as the capital of a province. But as its

inhabitants are not composed of Hindoos only, the _former_ wealth which

flowed into it from the offerings of pilgrims, as well as from the

transactions of exchange, for which its central situation is adapted,

has attracted numbers of Mahomedans, who still continue to reside in it

with their families." And these circumstances of the city of Benares,

which not only attracted the attention of all the different

descriptions of men who inhabit Hindostan, but interested them warmly in

whatever it might suffer, did in a peculiar manner require that the

Governor-General and Council of Calcutta should conduct themselves with

regard to its rulers and inhabitants, when it became dependent on the

Company, on the most distinguished principles of good faith, equity,

moderation, and mildness.

II. That the Rajah Bulwant Sing, late prince or Zemindar of the province

aforesaid, was a great lord of the Mogul Empire, dependent on the same,

through the Vizier of the Empire, the late Sujah ul Dowlah, Nabob of

Oude; and the said Bulwant Sing, in the commencement of the English

power, did attach himself to the cause of the English Company; and the

Court of Directors of the said Company did acknowledge, in their letter

of the 26th of May, 1768, that "Bulwant Sing's joining us at the time he

did was of _signal service_, and the stipulation in his favor was what

he was justly entitled to"; and they did commend "the care that had been

taken [by the then Presidency] of those that had shown their attachment

to them [the Company] during the war"; and they did finally express

their hope and expectation in the words following: "The moderation and

attention paid to those who have espoused our interests in this war will

_restore_ our reputation in Hindostan, and that the Indian powers will

be convinced _NO breach of treaty will ever have our sanction_."

III. That the Rajah Bulwant Sing died on the 23d of August, 1770, and

his son, Cheyt Sing, succeeding to his rights and pretensions, the

Presidency of Calcutta (John Cartier, Esquire, being then President) did

instruct Captain Gabriel Harper to procure a confirmation of the

succession to his son Cheyt Sing, "as it was of the utmost political

import to the Company's affairs; and that the young man ought not to

consider the price to be paid to satisfy _the Vizier's jealousy and

avarice_." And they did further declare as follows: "The strong and

inviolable attachment which subsisted betwixt the Company and the father

makes us most readily interpose our good offices for the son." And the

young Rajah aforesaid having agreed, under the mediation of Captain

Harper, to pay near two hundred thousand pounds as a gift to the said

Vizier, and to increase his tribute by near thirty thousand pounds

annually, a deed of confirmation was passed by the said Vizier to the

said Rajah and his heirs, by which he became a purchaser, for valuable

considerations, of his right and inheritance in the zemindary aforesaid.

In consequence of this grant, so by him purchased, the Rajah was

solemnly invested with the government in the city of Benares, "amidst

the acclamations of a numerous people, and to the great satisfaction of

all parties." And the said Harper, in his letter of the 8th October,

1770, giving an account of the investiture aforesaid, did express

himself in these words: "I will leave the young Rajah and others to

acquaint you how I have conducted myself; only thus much let me say,

that I have kept a strict eye not to diminish our national honor,

disinterestedness, and justice, which I will conclude has had a greater

effect in securing to the Company their vast possessions than even the

force of arms, however formidable, could do." The President of Calcutta

testified his approbation of the said Harper's conduct in the strongest

terms, that is, in the following: "Your disinterestedness has been

equally distinguishable as your abilities, and both do you the greatest

honor."

IV. That the agreement between the Rajah and Nabob aforesaid continued

on both sides without any violation, under the sanction and guaranty of

the East India Company, for three years, when Warren Hastings, Esquire,

being then President, did propose a further confirmation of the said

grant, and did, on the 12th of October, 1773, obtain a delegation for

himself to be the person to negotiate the same: it being his opinion, as

expressed in his report of October 4th, 1773, that the Rajah was not

only entitled to the inheritance of his zemindary by the grants through

Captain Harper, but that the preceding treaty of Allahabad, though

literally expressing no more than a security personal to Bulwant Sing,

did, notwithstanding, in the true sense and import thereof, extend to

his posterity; "and that it had been differently understood" (that is,

not literally) "by the Company, and by this administration; and the

Vizier had _before_ put it out of all dispute by the solemn act passed

in the Rajah's favor on his succession to the zemindary."

V. That the Council, in their instructions to the said Governor

Hastings, did empower him "to _renew_, in behalf of the Rajah Cheyt

Sing, the stipulation which was formerly made with the Vizier in

consideration of his services in 1764"; and the government was

accordingly settled on the Rajah and his posterity, or to his heirs, on

the same footing on which it was granted to his said father, excepting

the addition aforesaid to the tribute, with an express provision "that

_no increase_ shall ever hereafter be demanded." And the grant and

stipulation aforesaid was further confirmed by the said Sujah ul Dowlah,

under the Company's guaranty, by the most solemn and awful form of oath

known in the Mahomedan religion, inserted in the body of the deed or

grant; and the said Warren Hastings, strongly impressed with the opinion

of the propriety of protecting the Rajah, and of the injustice, malice,

and avarice of the said Sujah Dowlah, and the known family enmity

subsisting between him and the Rajah, did declare, in his report to the

Council, as follows: "I am well convinced that the Rajah's inheritance,

and perhaps his life, are no longer safe than while he enjoys the

Company's protection, which is his due by the ties of justice and the

obligations of public faith."

VI. That some time after the new confirmation aforesaid, that is to say,

in the year 1774, the Governor-General and Council, which had been

formed and the members thereof appointed by act of Parliament, did

obtain the assignment of the sovereignty paramount of the said

government by treaty with the Nabob of Oude, by which, although the

supreme dominion was changed, the terms and the conditions of the tenure

of the Rajah of Benares remained; as the said Nabob of Oude could

transfer to the East India Company no other or greater estate than he

himself possessed in or over the said zemindary. But to obviate any

misconstruction on the subject, the said Warren Hastings did propose to

the board, that, whatever provision might in the said treaty be made

for the interest of the Company, the same should be "without an

encroachment on the just rights of the Rajah, or _the engagements

actually subsisting with him_."

VII. That the said Warren Hastings, then having, or pretending to have,

an extraordinary care of the interest of the Rajah of Benares, did, on

his transfer of the sovereignty, propose a new grant, to be conveyed in

new instruments to the said Rajah, conferring upon him further

privileges, namely, the addition of the sovereign rights of the mint,

and of the right of criminal justice of life and death. And he, the said

Warren Hastings, as Governor-General, did himself propose the resolution

for that purpose in Council, in the following words, with remarks

explanatory of the principles upon which the grants aforesaid were made,

namely:--

MINUTE.

VIII. "That the perpetual and _independent_ possession of the zemindary

of Benares and its dependencies be _confirmed_ and guarantied to the

Rajah Cheyt Sing and his heirs forever, _subject only to the annual

payment of the revenues hitherto paid to the late Vizier_, amounting to

Benares Sicca Rupees 23,71,656.12, to be disposed of as is expressed in

the following article: _That no other demand be made on him either by

the Nabob of Oude or this government; nor any kind of authority or

jurisdiction be exercised by either within the districts assigned him_."

To which minute he, the said Warren Hastings, did subjoin the following

observation in writing, and recorded therewith in the Council books,

that is to say: "_The Rajah of Benares, from the situation of his

country, which is a frontier to the provinces of Oude and Bahar, may be

made a serviceable ally to the Company, whenever their affairs shall

require it. He has always been considered in this light both by the

Company and the successive members of the late Council; but to insure

his attachment to the Company, his interest must be connected with it,

which cannot be better effected than by freeing him totally from the

REMAINS of his present vassalage under the guaranty and protection of

the Company, and at the same time guarding him against any apprehensions

from this government, by thus pledging its faith that no encroachment

shall ever be made on his rights by the Company._" And the said Warren

Hastings, on the 5th of July, 1775, did himself propose, among other

articles of the treaty relative to this object, one of the following

tenor: "That, whilst the Rajah shall continue faithful to these

engagements and punctual in his payments, and shall pay due obedience to

the authority of this government, _no more demands_ shall be made upon

him by the Honorable Company of ANY KIND, or, on any pretence

whatsoever, shall any person be allowed to interfere with his authority,

or to disturb the peace of his country." And the said article was by the

other members of the Council assented to without debate.

IX. On transferring the Rajah's tribute from the Nabob to the Company,

the stipulation with the Nabob was renewed on the proposition of the

said Warren Hastings himself, and expressed in a yet more distinct

manner, namely: "That no more demands shall be made upon him by the

Honorable Company of any kind." And the said Warren Hastings, in

justification of his proposal of giving the Rajah "a complete and

uncontrolled authority over his zemindary," did enter on the Council

book the following reasons for investing him with the same, strongly

indicating the situation in which he must be left under any other

circumstances, whether under the Nabob of Oude, or under the English, or

under the double influence of both: "That the security of his person and

possessions from the Company's protection may be rated equal to many

lacs of rupees, _which, though saved to him, are no loss to the

government on which he depends, being all articles of invisible

expense_: in fees to the ministers and officers of the Nabob; in the

charges of a double establishment of vackeels to both governments; in

presents and charges of accommodation to the Nabob, during his residence

at any place within the boundaries of his zemindary; in _the frauds,

embezzlements, and oppressions exercised in the mint and cutwally_;

besides the allowed profits of those officers, and the advantages which

every man _in occasional power, or in the credit of it, might make of

the Rajah's known weakness_, and the dread he stood in both of the

displeasure of the Nabob _and the ill-will of individuals among the

English, who were all considered, either in their present stations or

connections, or the right of succession, as members of the state of

Bengal_. It would be scarce possible to enumerate all the inconveniences

to which the Rajah was liable _in his former situation_, or to estimate

the precise effect which they produced on his revenue and on the gross

amount of his expense; but it may be easily conceived that both were

enormous, and of a nature the most likely to lessen the profits of

government, instead of adding to them." And in justification of his

proposal of giving the Rajah the symbols of sovereignty in the power of

life and death, and in the coining of money, as pledges of his

_independence_, he states the deplorable situation of princes reduced to

dependence on the Vizier or the Company, and obliged to entertain an

English Resident at their court, in the following words: "It is proposed

to receive the payment of his [the Rajah's] rents at Patna, because that

is the nearest provincial station, and because it would not frustrate

_the intention of rendering the Rajah independent_. If a Resident was

appointed to receive the money, as it became due, at Benares, _such a

Resident_ would unavoidably acquire an influence over the Rajah, and

over his country, _which would in effect render him the master of both_.

This consequence might not perhaps be brought completely to pass without

_a struggle and many appeals to the Council_, which, in a government

constituted like this, _cannot fail to terminate against the Rajah, and,

by the construction to which his opposition to the agent would be

liable, might eventually draw on him severe restrictions, and end in

reducing him to the mean and depraved state of a mere zemindar_."

X. That, in order to satisfy the said Rajah of the intentions of the

Company towards him, and of the true sense and construction of the

grants to him, the said Rajah, to be made, the Governor-General (he, the

said Warren Hastings) and Council did, on the 24th August, 1775,

instruct Mr. Fowke, the Resident at the Rajah's court, in the following

words: "It is proper to assure the Rajah, we do not mean to increase his

tribute, but to require from him an exact sum; that, under the

sovereignty of the Company, we are determined to leave him the free and

uncontrolled management of the internal government of his country, and

the collection and regulation of the revenues, so long as he adheres to

the terms of his engagement; and will _never_ demand _any_ augmentation

of the annual tribute which may be fixed."

XI. That the said Warren Hastings and the Council-General, not being

satisfied with having instructed the Resident to make the representation

aforesaid, to remove all suspicion that by the new grants any attempt

should insidiously be made to change his former tenure, did resolve that

a letter should be written by the Governor-General himself to the Rajah

of Benares, to be delivered to Mr. Fowke, the Resident, together with

his credentials; in which letter they declare "the board willing to

continue the grant of the zemindary to him _in as full and ample a

manner as he possessed it from former sovereigns_; and on his paying the

annual tribute," &c;--and in explaining the reasons for granting to him

the mint and criminal justice, they inform him that this is done in

order "that he may possess an _uncontrolled and free authority_ in the

regulation and government of his zemindary."

XII. That on the 26th February, 1776, the Board and Council did order

that the proper instruments should be prepared for conveying to the

Rajah aforesaid the government and criminal justice and mint of Benares,

with its dependencies, "in the usual form, _expressing the conditions

already resolved on in the several proceedings of the board_." And on

the same day a letter was written to the Resident at Benares, signifying

that they had ordered the proper instruments to be prepared, specifying

the terms concerning the remittance of the Rajah's tribute to Calcutta,

as well as "_the several other conditions which had been already agreed

to_,--and that they should forward it to him, to be delivered to the

Rajah." And on the 20th of March following, the board did again explain

the terms of the said tribute, in a letter to the Court of Directors,

and did add, "that a _sunnud_ [grant or patent] for his [Cheyt Sing's]

zemindary should be furnished him _on these and the conditions before

agreed on_."

XIII. That during the course of the transactions aforesaid in Council,

and the various assurances given to the Rajah and the Court of

Directors, certain improper and fraudulent practices were used with

regard to the symbols of investiture which ought to have been given, and

the form of the deeds by which the said zemindary ought to have been

granted. For it appears that the original deeds were signed by the board

on the 4th September, 1775, and transmitted to Mr. Fowke, the Resident

at the Rajah's court, and that on the 20th of November following the

Court of Directors were acquainted by the said Warren Hastings and the

Council that Rajah Cheyt Sing had been invested with the _sunnud_

(charters or patents) for his zemindary, and the _kellaut_, (or robes of

investiture,) in all the proper forms; but on the 1st of October, 1775,

the Rajah did complain to the Governor-General and Council, that the

_kellaut_, (or robes,) with which he was to be invested according to

their order, "_is not of the same kind_ as that which he received from

the late Vizier on the like occasion." In consequence of the said

complaint, the board did, in their letter to the Resident of the 11th of

the same month, desire him "to make inquiry respecting the nature of

the kellaut, and invest him with _one of the same sort_, on the part of

this government, instead of that which they formerly described to him."

And it appears highly probable that the instruments which accompanied

the said robes of investiture were made in a manner conformable to the

orders and directions of the board, and the conditions by them agreed

to; as the Rajah, who complained of the insufficiency of the robes, did

make no complaint of the insufficiency of the instruments, or of any

deviation in them from those he had formerly received from the Vizier.

_But a copy or duplicate of the said deeds or instruments were in some

manner surreptitiously disposed of, and withheld from the records of the

Company, and never were transmitted to the Court of Directors._

XIV. That several months after the said settlement and investiture,

namely, on the 15th of April, 1776, the Secretary informed the Court

that he had prepared a _sunnud_, _cabbolut_, and _pottah_ (that is, a

patent, an agreement, and a rent-roll) for Cheyt Sing's zemindary, and

the board ordered the same to be executed; but the Resident, on

receiving the same, did transmit the several objections made by the

Rajah thereto, and particularly to a clause in the patent, made in

direct contradiction to the engagements of the Council so solemnly and

repeatedly given, by which clause the former patents _are declared to be

null_. That, on the representation aforesaid, on the 29th July, the

Secretary was ordered to prepare new and proper instruments, _omitting

the clause declaring the former patents to be null_, and the said new

patents were delivered to the Rajah; and the others, which he objected

to, as well as those which had been delivered to him originally, were

returned to the Presidency. But neither the first set of deeds, nor the

fraudulent patent aforesaid, nor the new instruments made out on the

complaint of the Rajah, omitting the exceptionable words, have been

inserted in the records, although it was the particular duty of the said

Warren Hastings that all transactions with the country powers should be

faithfully entered, as well as to take care that all instruments

transmitted to them on the faith of the Company should be honestly,

candidly, and fairly executed, according to the true intent and meaning

of the engagements entered into on the part of the Company,--giving by

the said complicated, artificial, and fraudulent management, as well as

by his said omitting to record the said material document, strong reason

to presume that he did even then meditate to make some evil use of the

deeds which he thus withheld from the Company, and which he did

afterwards in reality make, when he found means and opportunity to

effect his evil purpose.

The Works of the Right Honourable Edmund Burke, Vol. 08 (of 12) · 第 1 / 6 章