debts, and of our demands on him for ftate exigences and for protection. The Nabob proportioned his exactions on his dependants to the demands of his allies, and British armies have been fince, at times, employed to collect the Nabob's rents and tributes; and neither the British Government at home, nor its Government in the Carnatic, can tell whether the demands were juft; and how fhould they be competent judges, when they are encouraged to believe that, in the hiftory of Indian finance, no ftandard of taxation occurs but the will of the defpot? To complete the picture, the Nabob had been, during this period, and, I believe, is at this time, a fuitor in the Court of Chancery, appealing by legal process to the equity of the High Courts of Westminster to bring the Company to a statement and fettlement of their account current with him; this cannot be made the rule of future practice; its neceffity must be fuperfeded, for the practice under any modification cannot be decent; it arofe from European management, fometimes to control the Company, fometimes to blind the people of England

8

to their rights and intereft, and to turn public opinion in favour of fervants eluding the Company's control, and even in favour of the Company eluding the rights of the Crown. The eyes of the public have at times been opened by particular acts of rapine and abuse of power, which have been exaggerated or foftened by the political regulator of European politics or of British party.

The fighs of oppreffed Reyuts fcarcely have accefs to the Collector's ear, but the Nabob found direct access to the King's Minifters, which fortunately attached refponfibility more immediately upon them; Parliament, by the prefent act, has completed their refponfibility by defining the objects and extent of the Minister's control; heretofore the fluctuation of fyftem, and the periodical changes of opinion, diverted the confidence of allies from the oftenfible Ministers to private agents, and if Parliament had not attached to the King's Minifters the degree of confidence and power which made it their intereft to account frequently to Parliament, and to

explain the rule of connection to which the King of Great Britain shall be advised, fo often as the occafion fhall arife, the intrigues of deluded Indian Princes and their treasury would have been brought into action through the proprietors of India stock; the politics of India would have been regulated by party home-politics, and the interests of Great Britain have been managed by invisible Indian corruption: but fo long as Parliament will enforce refponsibility, and frequently examine the practical definition of its powers, India will remain an important and permanent resource to Great Britain.

CHAP. XIII.

On the commercial Neceffity of a general Plan for British India.

IT cannot be doubted that the real interefts of the Company and of Great Britain depend on the judicious exercise and con

*

trol of the powers of the Eaft-India act : the Company cannot difprove that a system of waste and extravagance in the commercial department would confume all the profits of commerce; or that the territorial revenue, which gives the advantages of increafed capital, may be perverted into a power of making both the juftice and police of the country fubfervient to the mifmanagement of its commerce. I have explained the general powers of the Board of Control to check the abufe, and to direct the complicated interests of the Company and of the State: I fhall state a few circumftances which induced me to infert the opinions of Sir James Steuart +, on the practical means of realizing the revenue and commerce without ruining the country. Mr. Ruffel informs us t," It is pretRussel ty well known now with respect to the debts owing in India, that the greatest part is due to the natives, which accounts for no more of it having been drawn home

* Introduction, page xlviii.

+ Page 350.

Short History, p. 50. 2d edit.

M m

upon the transfer plan. It is evidently wife and politic to leave a confiderable debt among the natives at an annual intereft:" if fo, it becomes doubly important to guard the India debt, and to render it applicable to the relief of the country, and particularly to leffen the artificial fluctuation which the realization of the revenues in coin occafions. Advances for manufacture, and even for agriculture, are neceffarily in filver; and the Zemindar collecting grain from the Reyut, must fell the grain before he makes his payment: Shroffage feems inherent in the fyftem, and its fluctuations have proved the fource of calamity to European as well as to native ad

venturers.

I perused the interesting letter* by which Mr. Law fuperfeded his obfervations on the neceffity of emancipating the fuperabandance of Indian produce from exorbitant freight, and I hope to be excused for inferting, as a fupplement to that letter, a paragraph in my poffeffion, by the fame

* Sketch of late Arrangements, Introd. p. xxv.