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nient extent; the honourable Charles Cathcart was entrufted by the Governor General, and his able negotiation with M. de Souillac, the French Governor General, brought this important explanation to a crifis. The Directors had formed a treaty with the Directors of the French Eaft-India

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Company in 1785, which the Comptroller General of Finances rejected; the agreement of Mr. Macpherfon relative to falt was alfo difallowed by the French Government in India; and another plan which the foreign merchants folicited, met with favoun from the Governor General; but it occafioned much clamour at Calcutta, and was not confirmed by the Directors and Board of Control. The foreign merchants were willing to carry on their trade from Calcutta inftead of their factories, provided they were allowed to pay the fame duties which they paid in their fettlements; and the whole argument which fupported the clamour of the Englijh merchants confifted in ftating, that they mould ftill be liable to pay to the Company's duty, from which the foreign merchant would continue to be exempt, and they prevailed in perpetuating

the hopes of future evafions under foreign privileges, but Government was aware of the former evafions which the Company complained of, and adopted the expedient of difcontinuing the inland Government duty on foreigners, and left them to make the moft of their Phirmaunds. The convention fettled provifionally by M. de Souil/ac and Colonel Cathcart was reduced into a definite explanation of the treaty of Verfailles by Lord Auckland, then plenipotentiary at Paris, and French fubjects were to be as Britijh fubjects in commercial concerns: this explains the curious diftinction above mentioned * in the introduction, "French fubjects are as Britijh fubjects, other Europeans are not as Briti/h fubjecls in Britijh India" It is a neceflary and important object of the Directors and Board of Control to revife this fubject; the powers of the prefent act are competent, and the definition of privileges muft be rendered uniform and juft.

I fhould not have dwelt fo much on the * Page xxix, and Plans for Britijh India, p. 412.

progrefs of the Company's collections if the attention of Parliament, and indeed of the Board of Control, had been fufficiently directed to the Company's policy. An erroneous definition of perfons and things is ftill infifted on; the ftatement of fecurkies to the proprietors of India ftock, en territory and cujloms in Erifijh India, might have paffed without obfervation fo long as the enumeration reftcd on the opinion of an anonymous proprietor of India ftock; but as it forms an important addition to the fecurity which Mr. Rujfel* ftates to belong to the Company, and its amount correfponds to the fum ftated by Mr. Dundas in opening the new India bill this year, it becomes neceflary to fhew that the Company's cuftoms are the Government cuftoms, and that the attempts to elude the rights of the flate have hitherto been equally ruinous to the interefts of the Company and to the rights of the public, and if permitted to continue, will fuperfede the benefits of the prefent act.

* Short Hiftory, p. 36.

The Committee of Circuit in 1772 redeemed Zem'mdary Chokies by abatement of 9,77727 rupees of territorial rent, and the Governor and Council reduced the cuftoms of Government to 2| per cent. ; the average medium of fix years Government cuftoms . fubfequent to that period produced onlj 7,29433 rupees*. The balances and remiffions in landed revenue on record for the five years fettlement amounted to 100,00,000 rupees, or 100 lacks •{-• The economical plan qf 1781 increafed the charges of collection, and " in the year 1783 the charges of collection were double what they were in 1766, and the net revenue from the territorial acquifition in Bengal was one million fterling lefs than it was the firft year after the acceffion to the Dewannee j'." This ftatement correfponds with Mr. Grant's calculation on the revenues of Bengal, detailed under different periods of the firft nineteen years of the Company's Dewannee, and proving that

* Bengal Revenue Confultations, 23d April, 1781. t Directors' Letter to Bengal Government, 12th April, 1786. Ibid.

the progreffive decline of revenue and increafe of charges during that period " afforded fufficient data to predict with moral certainty, if the lyftem was continued for forty-five years longer, it would gradually abforb and alienate all the known lources of public income and improved territorial funds of 80,797 fquare miles."

Whenever official documents fhall afcertain the comparative expence of the collections during the firft year of Lord Cornvual/is's government, 1787, and of the prefent year, 1793, the allowances of the new native colle&ors, and the penfions to difpoflefled Zemindars, and the Government duty given up, muft all be taken into the account; one plain conclufion may be predicted, the charges will have increafed, and the fyftem will ftill require amendment; the remedy has been conftantly within the reach both of the Directors and of the Board of Control; the Government cuftoms mould have been eftablifhed and the Company's cuftoms abolimed, for the regulations of Government cuftoms will include all defcriptions of

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