Part 9
[12] Nabob's letter to Governor Palk. Papers published by the Directors in 1775; and papers printed by the same authority, 1781.
[13] See papers printed by order of a General Court in 1780, pp. 222 and 224; as also Nabob's letter to Governor Dupré, 19th July, 1771: "I have taken up loans by which I have suffered a loss of _upwards of a crore of pagodas_ [four millions sterling] _by interest on an heavy interest_." Letter 15th January, 1772: "Notwithstanding I have taken much trouble, and have made many payments to my creditors, yet the load of my debt, _which became so great by interest and compound interest_, is not cleared."
[14] The Nabob of Arcot.
[15] Appendix, No. 3.
[16] See Mr. Dundas's 1st, 2d, and 3d Reports.
[17] See further Consultations, 3d February, 1778.
[18] Mr. Dundas's 1st Report, pp. 26, 29, and Appendix, No. 2, 10, 18, for the mutinous state and desertion of the Nabob's troops for want of pay. See also Report IV. of the same committee.
[19] Memorial from the creditors to the Governor and Council, 22d January, 1770.
[20] In the year 1778, Mr. James Call, one of the proprietors of this specific debt, was actually mayor. (Appendix to 2d Report of Mr. Dundas's committee, No. 65.) The only proof which appeared on the inquiry instituted in the General Court of 1781 was an affidavit of _the lenders themselves_, deposing (what nobody ever denied) that they had _engaged_ and _agreed_ to pay--not that they _had_ paid--the sum of 160,000_l._ This was two years after the transaction; and the affidavit is made before George Proctor, mayor, an attorney for certain of the old creditors.--Proceedings of the President and Council of Fort St. George, 22d February, 1779.
[21] Right Honorable Henry Dundas.
[22] Appendix to the 4th Report of Mr. Dundas's committee, No 15.
[23] "No sense of the common danger, in case of a war, can prevail on him [the Nabob of Arcot] to furnish the Company with what is absolutely necessary to assemble an army, though it is beyond a doubt that money to a large amount is now hoarded up in his coffers at Chepauk; and tunkaws are granted to _individuals_, upon some of his most _valuable countries_, for payment of part of those debts which he has contracted, and _which certainly will not bear inspection, as neither debtor nor creditors have ever had the confidence to submit the accounts to our examination_, though they expressed a wish to consolidate the debts under the auspices of this government, agreeably to a plan they had formed."--Madras Consultations, 20th July, 1778. Mr. Dundas's Appendix to 2nd Report, 143. See also last Appendix to ditto Report, No. 376, B.
[24] Transcriber's note: Footnote missing in original text.
[25] Lord Pigot
[26] In Sir Thomas Rumbold's letter to the Court of Directors, March 15th, 1778, he represents it as higher, in the following manner:--"How shall I paint to you my astonishment, on my arrival here, when I was informed, that, independent of this four lacs of pagodas [the Cavalry Loan], independent of the Nabob's debt to his old creditors, and the money due to the Company, he had contracted a debt to the enormous amount of sixty-three lacs of pagodas [2,520,000_l._]. I mention this circumstance to you _with horror_; for the creditors being in general _servants of the Company_ renders my task, on the part of the Company, _difficult and invidious_." "I have freed the sanction of this government from so _corrupt_ a transaction. It is in my mind the most venal of all proceedings to give the Company's protection to debts that cannot bear the light; and though it appears exceedingly alarming, that a country on which you are to depend for resources should be so involved as to be nearly three years' revenue in debt,--in a country, too, where one year's revenue can never be called _secure_, by men who know anything of the politics of this part of India." "I think it proper to mention to you, that, although _the Nabob reports his private debt to amount to upwards of sixty lacs_, yet I understand that it is not quite so much." Afterwards Sir Thomas Rumbold recommended this debt to the favorable attention of the Company, but without any sufficient reason for his change of disposition. However, he went no further.
[27] Nabob's proposals, November 25th, 1778; and memorial of the creditors, March 1st, 1779.
[28] Nabob's proposals to his new consolidated creditors, November 25th, 1778.
[29] Paper signed by the Nabob, 6th January, 1780.
[30] Kistbundi to July 31, 1780.
[31] Governor's letter to the Nabob, 25th July, 1779.
[32] Report of the Select Committee, Madras Consultations, January 7, 1771. See also papers published by the order of the Court of Directors in 1776; and Lord Macartney's correspondence with Mr. Hastings and the Nabob of Arcot. See also Mr. Dundas's Appendix, No 376, B. Nabob's propositions through Mr. Sulivan and Assam Khân, Art. 6, and indeed the whole.
[33] "The principal object of the expedition is, to get money from Tanjore to pay the Nabob's debt: if a surplus, to be applied in discharge of the Nabob's debts to his private creditors." (Consultations, March 20, 1771; and for further lights, Consultations, 12th June, 1771.) "We are alarmed lest this debt to _individuals_ should have been the _real_ motive for the aggrandizement of Mahomed Ali [the Nabob of Arcot], and that _we are plunged into a war_ to put him in possession of the Mysore revenues _for the discharge of the debt_."--Letter from the Directors, March 17, 1769.
[34] Letter from the Nabob, May 1st, 1768; and ditto, 24th April, 1770, 1st October; ditto, 16th September, 1772, 16th March, 1773.
[35] Letter from the Presidency at Madras to the Court of Directors, 27th June, 1769.
[36] Mr. Dundas's committee. Report L, Appendix, No. 29.
[37] Appendix, No. 4, Report of the Committee of Assigned Revenue.
[38] Mr. Barnard's map of the Jaghire
[39] See Report IV., Mr. Dundas's committee, p. 46.
[40] Interest is rated in India by the month.
[41] Mr. Dundas's committee. Rep. I. p. 9, and ditto, Rep. IV. 69, where the revenue of 1777 stated only at 22 lacs,--30 lacs stated as the revenue, "_supposing_ the Carnatic to be _properly_ managed."
[42] See Appendix, No. 4, statement in the Report of the Committee of Assigned Revenue.
[43] The province of Tinnevelly.
[44] Appendix, No. 5.
[45] See extract of their letter in the Appendix, No. 9.
[46] "It is certain that the incursion of a _few_ of Hyder's horse into the Jaghire, in 1767, cost the Company upwards of pagodas 27,000, _in allowances for damages_."--Consultations, February 11th, 1771.
[47] Proceeding at Madras, 11th February, 1769, and throughout the correspondence on this subject; particularly Consultations, October 4th, 1769, and the creditors' memorial, 20th January, 1770.
[48] Appendix, No. 7.
[49] For some part of these usurious transactions, see Consultation, 28th January, 1781; and for the Nabob's excusing his oppressions on account of these debts, Consultation, 26th November, 1770. "Still I undertook, first, the payment of the money belonging to the Company, who are my kind friends, and by borrowing, and _mortgaging my jewels, &c._, by _taking from every one of my servants_, in proportion to their circumstances, by _fresh severities_ also on my country, _notwithstanding its distressed state_, as you know."--The Board's remark is as follows: after controverting some of the facts, they say, "That his countries are oppressed is most certain, but not from real necessity; _his debts, indeed, have afforded him a constant pretence_ for using severities and cruel oppressions."
[50] See Consultation, 28th January, 1781, where it is asserted, and not denied, that the Nabob's farmers of revenue seldom continue for three months together. From this the state of the country may be easily judged of.
[51] In Mr. Fox's speech.
[52] The amended letter, Appendix, No. 9.
[53] Appendix, No. 8.
[54] Mr. Petrie's evidence before the Select Committee, Appendix, No. 7.
[55] Appendix, No. 7.
[56] Mr. Dundas.
[57] See Report IV., Committee of Secrecy, pp. 73 and 74; and Appendix, in sundry places.
[58] Mr. Smith's protest.
[59] Madras correspondence on this subject.
[60] Appendix, No 6.
[61] Right Honorable William Pitt.
[62] Appendix, No. 10.
[63] Dated 13th October. For further illustration of the style in which these letters were written, and the principles on which they proceed, see letters from the Nabob to the Court of Directors, dated August 16th and September 7th, 1783, delivered by Mr. James Macpherson, minister to the Nabob, January 14, 1784. Appendix, No. 10.
[64] Appendix, No. 6.
[65] Second Report of Select (General Smith's) Committee.
[66] Mr. Dundas.
[67] Six Reports of the Committee of Secrecy.
APPENDIX.
* * * * *
No. 1.
CLAUSES OF MR PITT'S BILL.
Referred to from p. 17.
_Appointing Commissioners to inquire into the Fees, Gratuities, Perquisites, Emoluments, which are, or have been lately, received in the several Public Offices therein mentioned; to examine into any Abuses which may exist in the same, &c._
And be it further enacted, that it shall and may be lawful to and for the said commissioners, or any two of them, and they are hereby empowered, authorized, and required, _to examine upon oath_ (which oath they, or any two of them, are hereby authorized to administer) the several persons, of _all_ descriptions, belonging to any of the offices or departments before mentioned, and _all other persons_ whom the said commissioners, or any two of them, shall think fit to examine, touching _the business_ of each office or department, and _the fees, gratuities, perquisites, and emoluments taken therein_, and touching all other matters and things necessary for the execution of the powers vested in the said commissioners by this act; _all which persons_ are hereby required and directed punctually to attend the said commissioners, _at such time and place as they, or any two of them, shall appoint, and also to observe and execute such orders and directions_ as the said commissioners, or any two of them, shall make or give for the purposes before mentioned.
And be it enacted by the authority aforesaid, that the said commissioners, or any two of them, shall be and are hereby empowered to examine into any corrupt and fraudulent practices, or other misconduct, committed by any person or persons concerned in the management of any of the offices or departments hereinbefore mentioned; and for the better execution of this present act, the said commissioners, or _any two of them, are hereby authorized to meet and sit, from time to time, in such place or places as they shall find most convenient, with, or without adjournment, and to send their precept or precepts, under their hands and seals, for any person or persons whatsoever, and for such books, papers, writings, or records, as they shall judge necessary for their information, relating to any of the offices or departments hereinbefore mentioned; and all bailiffs, constables, sheriffs, and other his Majesty's officers, are hereby required to obey and execute such orders and precepts aforesaid as shall be sent to them, or any of them, by the said commissioners, or any two of them, touching the premises._
* * * * *
No. 2.
Referred to from p. 22.
NABOB OF ARCOT'S DEBTS.
Mr. George Smith being asked, Whether the debts of the Nabob of Arcot have increased since he knew Madras? he said, Yes, they have. He distinguishes his debts into two sorts: those contracted before the year 1766, and those contracted from that year to the year in which he left Madras.--Being asked, What he thinks is the original amount of the old debts? he said, Between twenty-three and twenty-four lacs of pagodas, as well as he can recollect.--Being asked, What was the amount of that debt when he left Madras? he said, Between four and five lacs of pagodas, as he understood.--Being asked, What was the amount of the new debt when he left Madras? he said, In November, 1777, that debt amounted, according to the Nabob's own account, and published at Chepauk, his place of residence, to sixty lacs of pagodas, independent of the old debt, on which debt of sixty lacs of pagodas the Nabob did agree to pay an interest of twelve per cent per annum.--Being asked, Whether this debt was approved of by the Court of Directors? he said, He does not know it was.--Being asked, Whether the old debt was recognized by the Court of Directors? he said, Yes, it has been; and the Court of Directors have sent out repeated orders to the President and Council of Madras to enforce its recovery and payment.--Being asked, If the interest upon the new debt is punctually paid? he said, It was not during his residence at Madras, from 1777 to 1779, in which period he thinks no more than five per cent interest was paid, in different dividends of two and one per cent.--Being asked, What is the usual course taken by the Nabob concerning the arrears of interest? he said, Not having ever lent him moneys himself, he cannot fully answer as to the mode of settling the interest with him.
Being asked, Whether he has reason to believe the sixty lacs of pagodas was all principal money really and truly advanced to the Nabob of Arcot, or a fictitious capital, made up of obligations given by him, where no money or goods were received, or which was increased by the uniting into it a greater interest than the twelve per cent expressed to be due on the capital? he said, He has no reason to believe that the sum of sixty lacs of pagodas was lent in money or goods to the Nabob, because that sum he thinks is of more value than all the money, goods, and chattels in the settlement; but he does not know in what mode or manner this debt of the Nabob's was incurred or accumulated.--Being asked, Whether it was not a general and well-grounded opinion at Madras, that a great part of this sum was accumulated by obligations, and was for services performed or to be performed for the Nabob? he said, He has heard that a part of this debt was given for the purposes mentioned in the above question, but he does not know that it was so.--Being asked, Whether it was the general opinion of the settlement? he said, He cannot say that it was the general opinion, but it was the opinion of a considerable part of the settlement.--Being asked, Whether it was the declared opinion of those that were concerned in the debt, or those that were not? he said, It was the opinion of both parties, at least such of them as he conversed with.--Being asked, Whether he has reason to believe that the interest really paid by the Nabob, upon obligations given, or money lent, did not frequently exceed twelve per cent? he said, Prior to the 1st of August, 1774, he had had reason to believe that a higher interest than twelve per cent was paid by the Nabob on moneys lent to him; but from and after that period, when the last act of Parliament took place in India, he does not know that more than twelve per cent had been paid by the Nabob, or received from him.--Being asked, Whether it is not his opinion that the Nabob has paid more than twelve per cent for money due since the 1st of August, 1774? he said, He has heard that he has, but he does not know it.--Being asked, Whether he has been told so by any considerable and weighty authority, that was like to know? he said, He has been so informed by persons who he believes had a very good opportunity of knowing it.--Being asked, Whether he was ever told so by the Nabob of Arcot himself? he said, He does not recollect that the Nabob of Arcot directly told him so, but from what he said he did infer that he paid a higher interest than twelve per cent.
Mr. Smith being asked, Whether, in the course of trade, he ever sold anything to the Nabob of Arcot? he said, In the year 1775 he did sell to the Nabob of Arcot pearls to the amount of 32,500 pagodas, for which the Nabob gave him an order or tankah on the country of Tanjore, payable in six months, without interest.--Being asked, Whether, at the time he asked the Nabob his price for the pearls, the Nabob beat down that price, as dealers commonly do? he said, No; so far from it, he offered him more than he asked by 1000 pagodas, and which he rejected.--Being asked, Whether, in settling a transaction of discount with the Nabob's agent, he was not offered a greater discount than 12_l._ per cent? he said, In discounting a soucar's bill for 180,000 pagodas, the Nabob's agent did offer him a discount of twenty-four per cent per annum, saving that it was the usual rate of discount paid by the Nabob; but which he would not accept of, thinking himself confined by the act of Parliament limiting the interest of moneys to twelve per cent, and accordingly he discounted the bill at twelve per cent per annum only.--Being asked, Whether he does not think those offers were made him because the Nabob thought he was a person of some consequence in the settlement? he said, Being only a private merchant, he apprehends that the offer was made to him more from its being a general practice than from any opinion of his importance.
* * * * *
No. 3.
Referred to from p. 38.
_A Bill for the Better Government of the Territorial Possessions and Dependencies in India_.
[ONE OF MR FOX'S INDIA BILLS.]
And be it further enacted by the authority aforesaid, that the Nabob of Arcot, the Rajah of Tanjore, or any other native protected prince in India, shall not assign, mortgage, or pledge any territory or land whatsoever, or the produce or revenue thereof, to any British subject whatsoever; neither shall it be lawful to and for any British subject whatsoever to take or receive any such assignment, mortgage, or pledge; and the same are hereby declared to be null and void; and all payments or deliveries of produce or revenue, under any such assignment, shall and may be recovered back, by such native prince paying or delivering the same, from the person or persons receiving the same, or his or their representatives.
* * * * *
No. 4.
Referred to from pp. 64 and 73.
(COPY.)
27th May, 1782.
_Letter from the Committee of Assigned Revenue, to the President and Select Committee, dated 27th May, 1782; with Comparative Statement, and Minute thereon._
To the Right Honorable LORD MACARTNEY, K.B., President, and Governor, &c., Select Committee of Fort St. George.
MY LORD, AND GENTLEMEN,--
Although we have, in obedience to your commands of the 5th January, regularly laid before you our proceedings at large, and have occasionally addressed you upon such points as required your resolutions or orders for our guidance, we still think it necessary to collect and digest in a summary report those transactions in the management of the assigned revenue which have principally engaged our attention, and which, upon the proceeding, are too much intermixed with ordinary occurrences to be readily traced and understood.
Such a report may be formed with the greater propriety at this time, when your Lordship, &c., have been pleased to conclude your arrangements for the rent of several of the Nabob's districts. Our aim in it is briefly to explain the state of the Carnatic at the period of the Nabob's assignment,--the particular causes which existed to the prejudice of that assignment, after it was made,--and the measures which your Lordship, &c., have, upon our recommendation, adopted for removing those causes, and introducing a more regular and beneficial system of management in the country.
Hyder Ali having entered the Carnatic with his whole force, about the middle of July, 1780, and employed fire and sword in its destruction for near eighteen months before the Nabob's assignment took place, it will not be difficult to conceive the state of the country at that period. In those provinces which were fully exposed to the ravages of horse, scarce a vestige remained either of population or agriculture: such of the miserable inhabitants as escaped the fury of the sword were either carried into the Mysore country or left to struggle under the horrors of famine. The Arcot and Trichinopoly districts began early to feel the effects of this desolating war. Tinnevelly, Madura, and Ramnadaporum, though little infested with Hyder's troops, became a prey to the incursions of the Polygars, who stripped them of the greatest part of the revenues. Ongole, Nellore, and Palnaud, the only remaining districts, had suffered, but in a small degree.
The misfortunes of war, however, were not the only evils which the Carnatic experienced. The Nabob's aumildars, and other servants, appear to have taken advantage of the general confusion to enrich themselves. A very small part of the revenue was accounted for; and so high were the ordinary expenses of every district, that double the apparent produce of the whole country would not have satisfied them.
In this state, which we believe is no way exaggerated, the Company took charge of the assigned countries. Their prospect of relief from the heavy burdens of the war was, indeed, but little advanced by the Nabob's concession; and the revenues of the Carnatic seemed in danger of being irrecoverably lost, unless a speedy and entire change of system could be adopted.
On our minutes of the 21st January we treated the subject of the assignment at some length, and pointed out the mischiefs which, in addition to the effects of the war, had arisen from what we conceived to be wrong and oppressive management. We used the freedom to suggest an entire alteration in the mode of realizing the revenues. We proposed a considerable and immediate reduction of expenses, and a total change of the principal aumildars who had been employed under the Nabob.
Our ideas had the good fortune to receive your approbation; but the removal of the Nabob's servants being thought improper at that
## particular period of the collections, we employed our attention chiefly
in preserving what revenue was left the country, and acquiring such materials as might lead to a more perfect knowledge of its former and present state.
These pursuits, as we apprehended, met with great obstructions from the conduct of the Nabob's servants. The orders they received were evaded under various pretexts; no attention was paid to the strong and repeated applications made to them for the accounts of their management; and their attachment to the Company's interest appeared, in every instance, so feeble, that we saw no prospect whatever of success, but in the appointment of renters under the Company's sole authority.
Upon this principle, we judged it expedient to recommend that such of the Nabob's districts as were in a state to be farmed out might be immediately let by a public advertisement, issued in the Company's name, and circulated through every province of the Carnatic; and, with the view of encouraging bidders, we proposed that the countries might be advertised for the whole period of the Nabob's assignment, and the security of the Company's protection promised in the fullest manner to such persons as might become renters.
This plan had the desired effect; and the attempts which were secretly made to counteract it afforded an unequivocal proof of its necessity: but the advantages resulting from it were more pleasingly evinced by the number of proposals that were delivered, and by the terms which were in general offered for the districts intended to be farmed out.