respect to the revenues, he would state theming so, he begged to apprize the committee first upon an average of three years, compared that the estimates and accounts related only to with one year preceding; 2dly, he would the old possessions annexed to that presidency; make a comparison between the estimated otherwise it would be impossible to make a amount and the actual amount of the revenue comparison between its present and its former of the last year; and, 3dly, the estimated re- state; because, from the accession of territory venue for the succeeding year. He should and revenue, not only by the conquest of the therefore now proceed to state the revenues, Mysore, but by treaties with the Nizam, an avecharges, and estimates with respect to rage of the aggregate of the receipts would not constitute a fair mean of comparison with any former period. Having made this preliminary observation, he proceeded to state, that The average of these revenues, from 1798-9 BENGAL. Revenues-Average 1798-9 to 1800-1 More than average last drawn .6,436,807 289,776 to 1800-1, was £1,035,068 6,658,334 Which exceeds the average on the years 1797-8 to 1799-1800 82,734 319,131 - 4,422,047 Net revenue estimated for 1301-2, more than preceding year 592,240 The committee would observe from this statement, that the estimated charge for 1800-1, was 4,422,047. and that the actual amount of the charge was 4,780,611. making a difference between the actual and the estimated charge 358,5641. As the officers of the Company had always shewn great accuracy in making up the estimates, and had been particularly cautious not to mislead by overrating the revenue, he wished to explain to the committee, how it happened that there was this excess of the actual over the estimated charge, and to shew that there was no ground for impeaching the accuracy of the officers who had prepared the accounts. In the first place, these estimates referred to a period of war, and every body must be aware of the impossibility of strict accuracy and precision in estimates during the war. But in addition to this, he begged to state, that in the year to which he was alluding, the expedition to Egypt took place, which certainly was not in contemplation when the estimates were made; and from this circumstance there would be found a difference between the estimates and the actual charges in all the presidencies. He then proceeded to state the revenues, charges, and estimates with regard to Madras, but, in do Revenues estimated more than actual, 1800-1 358,772 Net charge for 1801-2, estimated less than the preceding year 266,000 92,772 The committee would see from this state- L. 211,892 Net increase of debts 2,462,814 £ 544,369 £.93,563 1,942,393 Charges and profit on private trade estimated Actually amounted to Deduct at China and St. Helena Net increase of assets 187,042 Deducted from the increase of debts would Being more than estimated The balance estimated to be remaining in favour on the 1st March 1802, amounting to 486,731, would by the actual accounts have Net decrease of balance in favour been considerably against the Company from the disappointment in the receipt on the sale of goods, and from deferring the disposal of the loyalty loan; but from some additional receipts on profit on private trade, and from Government for stores, &c. with postponement of the payment of the debt to the Bank, amounting to 800,000l. the balance the 1st March 1802, although the supplies to India and China exceeded the estimate upwards of 200,000l. still remained in favour to the amount of 168,7591. being less than estimated 317,9724.—The estimates for 1802-3 were as follow: £.6,500,600 - 1,755,351 Which sum was subject to alteration on the £707.473 final adjustment of the claims of the Company on Government, included in the home assets to the amount of 3,573,339%. making an increase in this year, under this head, of 900,899!. the affairs of the East India Company, both at -Having gone through general state of home and abroad, comprising their revenues, charges, debts, assets, &c. he should now proceed to put the committee in possession of the best outline in his power of the prospective view of their situation. The best way that occurred to him of doing this, would be to state to the committee, first, the extent of the incumbrances upon the Company, then the extent of their means to meet these incumbrances; then the mode in which it was proposed to apply those means for the amelioration of their affairs, and the result that might fairly be expected from the adoption of these measures; and lastly, to state what was the 571,306 expectation of the public from the Company, 1,434,556 5,393,989 either in the alternative of peace or war. In order to elucidate this subject, he had moved for these accounts, which would put the House in possession of all the material facts. And first, with regard to the incumbrances: the estimate of the revenue and charges had been prepared by the proper officers abroad, and also the interest of the debt; but there was no certified amount of the capital of the debt, he was therefore obliged to form the best estimate in his power. In order to prevent mistake, and to be as sure as possible, he would take the capital of the debt at the highest amount, and state it at 18,500,000l. which would completely cover the whole of the debt. Of this sum, as he had before stated, 16,000,cool. bore interest, the annual amount of which was 1,438,7917. This certainly was a most serious sum, and must necessarily be a most serious deduction from the income of the Company. But, great as it was, still it was a most satisfactory consideration, that if the state of the Company in 1793, with all the necessary increase of expense in the course of the war, was compared with its present state, there would be a corresponding increase in the assets of the Company, at least equal to the incumbrances incurred, so that the Company were in as good a state as they were at the commencement of the war. In considering the debt of the Company, the first thing that naturally occurred to the mind was the very high rate of interest which they paid for their debt; the interest amounted to very little short of 9 per cent. He stated this, in the hope that the committee would bear it in mind, while he adverted to what occurred to him upon another part of the subject. If the Company had no surplus revenue at all to apply to the liquidation of their debt, still there was another operation which they might have recourse to, and which would contribute very materially to that object, and that was the conversion of their Indian debt bearing the high interest he had stated, into an European debt. This would put the Company into the possession of a considerable fund for the extinction of their debt, because the difference of interest between an Indian debt, to the amount he had stated, at 9 per cent. and an European debt at 5 per cent. would afford to the Company a saving of about 5,380,000l. a year. He wished therefore that the committee would always bear in mind that there were applicable to the extinction of the debt not only the existing funds, but the saving to be made by this change in the nature of the debt. The present means which the Company possessed to meet their incumbrances must arise from their revenues abroad, and from their capital at home. The estimated revenues, according to the latest accounts which had been received, would be all together 11,976,180/.; the estimated charges were 9,346,3691.; there would then remain a surplus of 2,729,8117.; from this, however, were to be deducted the commercial charges, the supplies to Bencoolen, and the interest of the debt, and there would then remain a net surplus of 1,053,5821. This surplus arose partly from an increase in the revenue, and partly from some reductions which have been made in the expenses. No reduction, however, had been taken credit for, which had not been actually accomplished, though there were others in contemplation which he hoped would be extremely productive. In adverting to this subject, it was impossible that the attention of the committee should not be turned to the Noble Person now at the head of the government in India, the Marquis Wellesley; and he would venture to say, that, high as his character stood upon other grounds, it would stand still higher when the measures he had adopted for improving the finances of the Company were considered; it would be found that the same energy of mind which carried him through the other difficulties which surrounded him, had particularly characterized his financial ar rangements.-Having, however, mentioned the reductions which had been made, he wished that the committee should not entertain any apprehensions that they were such as would in any degree endanger the safety of our empire in India; and perhaps the best way to satisfy the committee upon this head would be, to state the amount of our army in India. It amounted to 24,000 Europeans, of whom 17,000 were King's troops. The native force amounted to 89,000 men; and the irregu lar force, including Lascars, to 10,000, making altogether an army of above 124,000 men. With such a force, there was no ground for apprehensions either from attacks from Europe or from contests in India.-His Lordship then proceeded to comment upon the commercial state of the Company, and contended, that nothing could shake them in the commerce of the East, because nobody would embark a large capital against a company that had so large a surplus revenue, which they must remit to Europe, and which must enable them to drive any competitor out of the market. With regard to the sum which at the last renewal of the Company's charter was to be paid to the public, the non-payment of it had only been occasioned by the war, but undoubtedly in the event of the continuance of peace, the payment would be regularly made. According to the act for the renewal of the charter, the appropriation of their surplus revenue was as follows: the first half million was to answer bills from India, the second half million was to be paid to the public, and the remainder was to go in extinction of the debt. The result of this statement would be, that after paying the public 500,000l. a year, there would remain a sum of above one million applicable to the reduction of the debt, independent of the measure to which he had before. alluded, of the conversion of the debt. He wished here to observe, that it was not in contemplation to liquidate the whole of the Home surplus £.2,250,000 Supposing two millions raised in aid of sink 450,000 2,700,000 500,000 2,200,000 debt: it was proper, for many reasons, that | pen, either in the revenues or commercial a part of the debt should remain; one of profits.-State of affairs at the end of six years: those reasons was, that the natives should Indian surplus, April 1809 have an interest (independent of the advantages they have under our government) in the permanence of the Company. Supposing then the amount of debt to be reduced Deduct-Public participation was 12,000,000l. and the sum applicable to the reduction to be 2,000,000l. a year, it would obviously be liquidated in six years, and the interest due upon the remainder, taking it even at 6 per cent. would be only 240,000l. a year. He presumed that the interest might, under these circumstances, be reduced to 6 per cent. and in the present state of the Company's affairs, they would not have occasion to raise any money for the first two years. He was aware that the committee might suppose that he was giving an exaggerated account His of the affairs of the Company, but he would state the grounds of his calculation as applying to the alternative either of peace or war. Lordship then entered into the following statement of the Company, and applicability of those means to the liquidation of their debts. He had before stated the surplus of their foreign revenue; he now came to consider their home surplus. Four years average to March 1802 Add net surplus abroad £ 366,874 1,420,456 1,500,000 The twelve millions paid off will have been Surplus from net proceeds for six years ing fund, by adding to capital, deduct in- Net proceeds, subject to ulterior appropria- 5-6ths to be invested in the funds to counter- 100,000 2,100,000 350,000 1,750,000 2,100,000 The operation of the above appropriation until the year 1813-14, when the charter would expire, unless sooner renewed, would be to increase the Company's dividends annually, by one half, viz. 350,000l. and to accumulate, at 4 per cent. compound interest, during the five years, a guarantee fund of 9,485,000/-In the event of war, the Indian surplus must be necessarily reduced. The reductions of charge since the peace amount per estimate to 783,cool. per annum. Allowing for a war establishment equal in extent to that at the close of the late war, there will still remain net proceeds 717,000/-But to make the most ample allowance, take the war charges at 1,000,000l. there will still remain net proceeds 500,000l. applicable to the reduction of debt. -In this case the participation of the public would necessarily be suspended during war, and would revive upon the reductions resulting from peace.-With such a disposable surplus, provided the transfer of funds from Europe to India shall meet with no interruption in time of war, the contracting of fresh loans may not only be avoided, but a system of liquidation, upon principles similar to those above stated, be pursued even during war, though necessa rily upon a reduced scale.-For executing the above measure, and for the extension of trade, the Company possess the following available resources: May add to their capital two millions, at 220 £4,400,000 per cent. 1,000,000 5.400,000 2,000,000 3,400,000 6,000,000 2,713,000 Suppose as above, raised for sinking fund 3,287,000 Remains for the extension of trade 12,000,000 Having gone through the whole of this stateOf the sum to be furnished from Europe, not ment with the greatest clearness and precision, more than 2,000,000l. need be raised by loan; his Lordship said, that although the continu the repayments from Government for the Egyp-ance of peace must be to India, as it must be tian expedition, &c. will cover the remainder; and this sum subject to be reduced by any improvement of net proceeds which may hap to this country, and to the whole world, the greatest blessing, yet if, contrary to our hopes and endeavours, we should be again plunged |