currency through the provinces; or of the application of the law to persons ignorant of European process, and themselves undefined by British Governors; it is enough to obferve, that, fo early as March, 1776, the majority of the Supreme Council of Calcutta confirmed the opinion of Mr. Verelst, that Bengal could not be held by Britifh laws, administered to the natives by the Judges of His Majefty's Supreme Court of Judicature *; and farther fatisfactory demonstration of the necessity of conftant reference to Sunnud, for the purpose of correct definition, appears in Mr. Grant's statement of the proceedings of the Courts in the cafes of Zemindars.

The Legislature of Great Britain was not inattentive to the confufion it had occafioned, and, in 1781, took the best measure, as a preliminary to more effectual regulation, to grant a general indemnity. 21. Geo. III. cap. 70, fec. 28, "and where

*Mr. Francis' Letter to Lord North, p. 41.

+ Inquiry into Zemindary tenures. Debrett, 1790,

p. 9. and Appendix, No. 4, C. D. E. F. G. H.

as in the late diffentions between the "Governor General and the Judges in Bengal many things have been done not

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juftifiable by the ftrict rules of the law," it is farther enacted that "the faid Go"vernor General and Council, and Ad"vocate General, and all perfons acting "under their authority, are feverally and

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jointly, fo far as relates to the resistance "to any process of the Supreme Court, "indemnified and faved harmlefs," &c. And by section 8 of the fame act, it is enacted, that “the Supreme Court shall not have or exercife any jurifdiction in

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any matter concerning the revenue, or concerning any act or acts done in the "collection thereof, according to the ufage "and practice of the country, or the re

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gulations of the Governor General and "Council." And by fec. And by fec. 9 it was farther enacted, that " no perfon fhall be fubject "to the jurifdiction of the Supreme Court "on account of his being a land-owner "or farmer of land;"—this was connected with the other clauses of the same act inserted at length*, which guarantee the

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*Page

rights and authorities of fathers of families and masters of families, according as they might have been exercised respectively, by Gentu or Mahomedan law *. And it must be particularly attended to, that the act of 1781 reduced the Supreme Court of Judicature, instituted in 1773, nearly to the limits of jurisdiction of the Mayor's Court, according to its original charter ftill exifting at Madras and Bombay; but the forms and increased expence incident to the great scale of the Supreme Court, perhaps neceffarily, have been continued to the prefent period.

I remarked that at the period the Directors ftood forth as Dewans, the commercial and revenue departments were intended to be distinct; it was obvious at that period that the landed revenue was the bafis of the commercial and political greatness of the Company, and having feen that the Revenue Department alone had absorbed the zeal and contefts of the Govern

* Vide Act. 21. Geo. III. cap. 70.

ment, it is not therefore furprizing that no one of the plans intended to render the country profperous had been attempted: the fubfidiary principle which, in 1773, fucceeded the unjust auctioneering practice of farming, on the avowed principle of collecting as much as poffible from the country, has fully employed the talents of Mr. Haftings and Mr. Francis, and Sir John Shore and Mr. Law, who all have, and they profess to have, the fame fubfidiary principle, of forming a fettlement to the amount, which, from past experience and conjecture (expressly excepting actual meafurement and actual valuation) they feverally, in honour and confcience, believe the country capable of paying into the Exchequer, without a poffibility of outstanding balances; it is therefore neceffary to rescue that period of Lord North's administration from obloquy, by ftating an extract of fome fpeculations, and practicable means of giving profperity to British India, compofed by Sir James Stewart, at the defire of the Eaft-India Com

pany, and printed at their expence, in 1772*.

CHAP. V.

Methods propofed by Sir James Steuart for extending Circulation by the Means of Paper Credit in Bengal.

LET

us now suppose that the nature of the drains which tend to diminifh the current coin of Bengal have been pointed out, and that the methods for rectifying the abuses have been understood as hints for making more accurate discoveries upon the true ftate of thefe important objects: the next objects of inquiry are, the proper methods for accelerating circulation; for by accelerating the circulation of the coin

* A memorandum in the copy I bought at a bookfeller's, ftates that it was not published, but circulated by the Directors in 1772 to particular perfons.