er at a difcount: if the former, it can never happen; but if the latter in but a fmall amount, it will always fuit the intereft of the buyers to pay for their purchafes by this method, as they are receiveable at par. As the iffue of new bonds in this year has been very trivial, the bond debt will be found reduced in nearly the whole fum paid in.

The excefs by the pay of officers on furlough and on retirement, has arifen from a greater number embracing the benefit of the military regulations than was expected when the effimate was made. Another excels is in the payment to the Bank, in difcharge of loans. This is merely in appearance, being only under one branch of the obligations to the Bank. On reference to the other, it will be difcovered, that the fum of 700,000l. was deferred. The real ftate of this concern is, the whole amount of the debt, at the commencement of the year, was 1,150,000l.. Of this 700,000l. was a loan on the mortgage of the annuities, 100,000l. on bonds, and 350,000l. on the loyalty loan. It was originally in contemplation to difcharge the two first, but finally determined to pay only the latter; fo that, inftead of a real excefs, it will appear that the actual payments to the Bank were 450,000l. lefs than eftimated, and that the debt fill remaining due is reduced to 800,000l.

The heads under which the actual payments have fallen short of the estimated, to an amount requiring notice, are as follows:

The customs on the Company's goods, in the fum of 203,1591. Confidering the enlarged importation, an excefs was rather to have been expected; but the fum due amounts to 415,9211. more than last

year.

Eftimate, 1799-1800.

pro

The great and leading point first to be noticed in the eftimate is the receipt for the fale of goods. The amount ftated on this account is 7,840,5281. which is only 76,1241. more than the receipt in the last year. The estimate appears to be made with great caution: the fale is taken at 470,000l. lefs than the last year, though the value of goods in warehouse was mor by 3,400,cool. The principle on which it is formed is as follows: The fales were eftimated to amount to 7,863,000l.; of which may be received, after the clofe of the year, 865,cool.; leaving the receipt on thefe fales at 6,998,000l.; but, reckoning on the payment of what was due on the fales of the last year, to the amount of 842,5281. making, as above, 7,840,5281. From the fales actually made (as far as it can be afcertained) there exifts every probability that the expectations in this re gard will not be difappointed.

On the payment fide, the cuftoms and freight are calculated, as ufual, on the quantity C4.

quantity of goods expected: a variation in the firft may arise from the act paffed in the last feffion, by which, in fome cafes, the purchafers will pay the cuftoms. The fupply to India in bills and bullion, and the manufactures of this country, is ftated to a large amount; and it is expected that the fum of 800,000l. will be paid to the Bank. The refult of the whole is, the balance against the Company, on rft March 1800, is estimated to be 565,9881. From the experience of the two paft years, a more favourable out-turn, as to the cafh balance, may be expected; and indeed it is more than probable that arrangements have been made, accommodated to the circumstances of the Company.

DEBTS AT HOME.

The debts and affets at home come next under review. In March 1798, the debts amounted to 7,284,6941.;-in March 1799, by No. 23, their amount was 7,103,7621.; being a decreafe, in the last year, of 180,9321.

This, it is to be observed, is the net decrease. On fome items an increase has appeared; but thefe have, for the moft part, been already noticed. The large diminution of the bond debt, and of the debt to the Bank, likewife before-mentioned, with the smaller fums due on bills from India, and other articles not neceffary to be particularized, produced the difference here ftated.

ASSETS AT HOME.

A confiderable amelioration of the property at home was fhewn in the last year. In the prefent it has occurred in a much greater amount. The value of the affets was, on the 1ft March 1798, 13,211,370l.; on the 1st March 1799, by No. 23, it was 17,119,6281.; making an increase amounting to 3,908,2581.

The increafed amount of goods in warehoufe, and of the fums due on fales, has been adverted to. Additions are found in the outward-bound cargoes, in bullion, and in articles for export. The only item fhewing a decrease requiring notice, is the cargoes from China, which had not arrived at the time ef making up the account of the last year.

If the decrease of the debts, amounting to 180,9321. is added to the above increafe of aflets, the improvement of the home concern in this year will appear to be -4,089,1901.

CHINA AND ST. HELENA.

In the last year, a reverfe at China appeared to a large amount. The balance

against the Company, by the account now under examination, appears to have increased. In the former year it amount. ed to 718,9451.; by No. 24 of the prefent accounts it was 1,073,6071; which is more unfavourable by 354,6621.

No books of a later date having been received from St. Helena than those from which the balance ftated last year was taken, a comparison in that instance cannot be made.

GENERAL COMPARATIVE VIEW of the Debts and Affets in the laft and prefent Year's Account.

The final object intended to be accomplished by the prefent inveftigation is, a difcovery of the effect produced on the Company's concerns at large, by the tranfactions, both abroad and at home, during the year under confideration. To that end it will be neceffary to draw into one view the increase or decrease of debts and affets which have been already ftated.

An increase has appeared in the debts in India, amounting to 1,738,1061.;--the decrease in the debts at home is 180,9321. and, deducted from the increase in India, fhews the net increase of debts to be 1,557,1741. The decrease of affets in India is 608,2421. ;-the increase of affets at home is 3,908,2581.; by deducting the decrease in India, the increafe of the af fets will be 3,300,0161.; and deducting farther the decrease at China, amounting to 354,6621. the net increafe of affets will then appear to be 2,945,3541. The difference between this fum and the increase of debt, as above, is 1,388,180l. and is the amount in which the general ftate of the Company's affairs has improved in the pe riod of account now before the Committee.

The account, No. 24, intitled, Stock by Computation, is drawn up with the view, likewife, of exhibiting the general state of the Company's affairs, both abroad and at home. The comparison of the balances of this account, from year to year, fhould correfpond with the comparifon now made; the reafon why it does not, has been for merly explained. By this account it ap pears, that the balance of property in India was taken from flock accounts of va rious dates, fome fo far back as October 1797. Every adjustment was made, as prefcribed by the advices received at the time of making up the accounts; and the dates of the invoices of cargoes to or from India were examined, that no part of their value fhould be included, both abroad and at home.

As

As the amount of the property in Inda, No. 21 of the ftatements now under reference, was made up to the 30th April 1798, a farther examination has taken place; and it appears that cargoes to the amount of 279,6531. forming a part of the aflets at home, arrived in India, previous to the clofing of the quick ftocks, on 30th April 1798. This fum muft, in courfe, be deducted; when the net improvement will be reduced to 1,108,5271.

The refults arifing from the inveftiga on of the accounts, naturally fuggeft the propriety of further remarks.

From the origin of the establishment of the prefent fyftem of controul over the affairs of the Eaft India Company, but particularly fince the arrangement in the year 1793 (the commencement of the prefent charter), my earneft endeavours have been exerted, that the end designed should be fully accomplished. Every variation from the eftimate then formed, which was confidered the bafis of the financial calculations, has been diftinctly attended to; the fubfequent eftimates, framed agreeably to the circumftances of the times, have been minutely examined, and their out-turn, either as it refpected revenue or charge, clofely investigated, and stated to the Committee. Upon the prefent occafion, it has been deemed requifite to go into more extenfive explanations in the detail of the examination, because it is the firft in which a deficit has appeared in the refources of India to answer the demands, and becaufe the refult in the home concern has been fo much more favourable than any expectation which could have been entertained. Thefe explanations might, perhaps, be fufficient to account for the differences between the estimates and the actual accounts of the year in queftion; but it appears needful that the attention of the Committee fhould be directed to a more general view of the fubject, left any alarm hould arife in confequence of the deficiency abroad, and left the confidence in the ftability of the refources there (which may be justly entertained) fhould be fhaken.

The estimate of the year 1793, now adverted to, was framed on the most accurate calculations prefcribed by the experience of paft years. That the profpects might not be over-rated, the refources, though evidently in a state of improve

ment, were taken on a moderate scale:-

This is proved by the iffue. Their produce has more than juftified the expecta tions; and although fluctuations on fo immenfe a revenue muft naturally be expected, the cftimate has been exceeded in

no less a fum than a million sterling on the average: and it is fatisfactory to obferve, that notwithstanding some disappointments have occafionally happened in the realization of the Company's own immediate refources, nothing has occurred to raise any doubt of their general stability and permanence. The fubfidies from the Princes in alliance with the Company, for the military affiftance rendered them, have received a confiderable addition; and it is expected that the receipts on that account will, in the year 1798-9, exceed the fum first stated in no lefs an amount than 560,000l.

From what has been now obferved, it must be concluded, that the immenfe difference has entirely arifen from the increafe of the charges. It nevertheless appears, that the eftimate, in this refpect, was framed with an equal degree of caution. The increafe has been occafioned by circumstances which could not poffibly be forefeen: it has been progreffive; and the various additions have been annually explained to the Committee as they arofe. On the review it will be found, that a part may be looked upon to be perma nent; as that occafioned by the regula tions for the administration of justice, that incurred by the military regulations in 1796, with the increafed pay to the Europeans, in conformity with the fame meafure in England; alfo the addition to the army, in confequence of the fubfidiary treaties; but a very material part of the increafed expence may be stated to be temporary and contingent, and to have arifen from the neceffity of various expeditions, and of warlike preparations, of which it will not be practicable to ascertain the whole charge incurred till accounts of a later date fhall be received. It is then intended more fully to illuftrate the policy of the measures adopted from time to time; likewife the important and benefi cial confequences which may be ultimately expected from the fuccefsful iffue of the late military operations.

A part of the additional disbursement may be attributed to the commerce; the debts having been increated from the mea fure of carrying the investments to the utmost extent poffible, from which the annual intereft was much greater. The remarks now offered arife from the general view of the whole concern, and lead to the moft fatisfactory inferences. The expences have certainly been immenfe; but, under every circumitance of the war, the revences have increased, and the trade has been advanced, to an amount before und known. - Great advantages have been al

ready

ready derived; more may be expected. The major part of the expence incurred can only be efteemed a temporary facrifice to obtain a fubftantial and permanent benefit. My opinions to this effect have formerly been given; and I am much gratified, that, in whatever way the fubject is confidered, they appear to be fully warranted in the refult.

The view of the political fituation of the Company, prefents a fource of the highest fatisfaction, and cannot fail of producing the warmeft approbation of every meafure which has been adopted. The neceffity of the moft vigorous and decifive meafures is completely felf-evident; and if the prefervation of the British poffeffions, entire and undiminished, had been alone accomplished, a truly valuable end would have been answered; but when the moft fanguine expectations have been exceeded, and the power and influence of this country in the Eaft have been carried to an extent, and established on a footing, flattering to its pride, and conducive to its general interefts, every regret at the immenfe expences incurred will vanish, and the attention will only be directed to the ample remuneration which will hereafter be found.

The purfuit and attainment of these great objects naturally affected the whole financial fyftem abroad, in a degree apparently injurious to the commercial interefts. A very confiderable part of the fum ufually appropriated to the purpofes of commerce became abforbed; fo that the continuance of the investments at their accustomed amount, and much more the extenfion, might certainly be confidered a queftion rather problematical, from the. difficulty of providing funds increafing with the additional amount required; and efpecially as thofe funds could only be raifed on loans, at expenfive rates of intereft, or on bills at an unfavourable exchange. The effect of the former has been fhewn in the increased debt abroad, and the inconvenience is felt in the great demand for intereft: but at the periods in queftion, no inconvenience of this defcription could be put in competition with the far greater evils which muft have arifen from the interruption of the manufactures on the one hand, or with the advantages which, on every commercial principle, might be reckoned upon, on the other. In both refpects, the end has been fully anfwered; the industry of the natives has had full fcope, and the produce of it has met a ready and profitable market. The treafury at home has been replenished, and the Company have been enabled to afford

to India extenfive fupplies at most seafon able periods. The payments from the home treasury on account of India and China, in the three years 1797-8 to 1799-1800, (a year later than the accounts now before the Committee,) have amounted to no lefs a fum than 10,660,000l. Of this, 4,100,000l. were for the exports of this country, 2,240,ocul. for bullion, 2,700,000l. in payment of bills of exchange, and 1,600,000l. in liquidation of the Indian debt; fo that the average supply in those years was more than 3,500,000l.

The propriety of keeping up the inveft ments in India to the utmost amount poffible, is still farther evinced, by a reference to the fituation of the Company, in con fequence of the expulfion of European ri vals. The opportunity was too favour able to be neglected; it became, in fact, a duty to embrace it. On that principle, the Legislature permitted (if neceffary) an addition of two millions to the capital ftock. The depreffed value of the public fecurities, for a confiderable time after the pafling of that act, rendered it unadviseable to have recourfe to this measure; which, in one refpect, may be deemed fortunate, as an opportunity has been afforded of discovering the power and extent of the Company's credit and refources; and the full benefit of the exertions abroad has been derived by the aid only of occafional iffues of bonds and of loans from the Bank, each of which has been reduced to the former level. In the last year, a confiderable amelioration appeared in the home concern; but in no proportion equal to that in the accounts of the prefent year. Againft this the deterioration of the foreign may be stated; but the most effectual remedy in that re fpect has been applied; and the improve ment on the concern in general, compared with the year preceding, exceeds one million fterling.

The produce of the fales in the year 1798-9 was unprecedented. The encou ragements under the act of 1793 to pri vate traders, that the commerce of the Eaft might be brought to Great Britain, have already had happy effects. The fales of private trade goods are every year in creafing; thofe of the last year exceeded any former; thofe of the year now under confideration were ftill 400,000l. more; and little doubt need be entertained, but by a regulated extenfion of the privilege, and by the adoption of fuch additional wife meafures as experience may fuggest, fteadily adhering at the fame time to the principle in view when the act was paffed, the object will be attained, fo far as, un

dar

der exifting circumftances, there is just ground to hope.

Greater credit may be affumed from the amount of the fales in general, from the difcovery that the purchases were not made on mere fpeculation, but on a real demand. In the articles for foreign confumption, particularly, proofs to that effect exift; and the goods were fhipped with a rapidity before unknown. An evidence ftill ftronger is found on the fales of the next year, which, as far as the accounts are made up, appear to have been equal to the large amount eftimated. The improving ftate of the commerce is likewife manifested in the enlarged demands for the manufactures of this country. From the ready fale, the govern ments abroad were induced to add confiderably to their indents; and the Court of Directors, willing to contribute fo effentially to the general advantage, greatly enlarged the confignments. Some later advices mention a partial ftagnation, from the fcarcity of fpecie, and the disturbed ftate of India. The fupply of bullion from home will have afforded great re lief in the first instance, and the fuccefsful operations of the British arms will have materially contributed to correct the other; fo that there is every profpect of an increafed confumption in future. A demand may likewife arife in the recent ly acquired territories, and in other parts where it has been endeavoured to eftablifh a commercial intercourse.

The fubftantial advantages accruing, both abroad and at home, from an increafed demand of the manufactures, in either inftance, will not be difputed: in it centers the fureft fource of profperity. Thofe advantages cannot be more strongly exemplified than in the period now under confideration. The employ of the thoufands of industrious artizans in the Indian provinces, afforded the means of purchafing the goods of this country, and contributed largely to produce other beneficial effects already stated.

The trade with China may not perhaps be thought to be productive of this reciprocal advantage in fo great a degree; the benefit is ftill, however, immenfe, both to the Company and to the Nation: to the Company, from contributing most effentially to the fales at home, in an article yielding confiderable profit. The benefit to the Nation, exclufive of the employment of fhipping, is two-fold; in point of revenue, as will be again noticed, but especially in the conftant, regular, and increafing annual demand for the woollens and metals. The demand, indeed, for woollens, may be

stated as beneficial to the Nation alone; as in a commercial point of view, the Company, confidered only as merchants, might not think it prudent to attend to it, on account of the lofs to which it frequently expofes them; but notwithstanding a lofs in the laft year, the export in the following has been increased, because the Company, from a fenfe of duty to the Public, very properly reflected, that they should not be juftified in placing their own immediate intereft in competition with the advantages generally diffused by the consumption of manufactures to the amount of several hundred thousand pounds fterling. It is much to be regretted, that, from the fituation of the affairs in India, the balances due the Chinese merchants were fo greatly increased; as it is always defirable for the credit of the Company and of the Nation to keep them as low as poflible. Late advices ftate, that, by the timely affiftance of bullion and goods from and bills upon Europe and the Prefidencies in India, the balance has fince been reduced from 1,073,000l. to 220,000l.

I have already remarked, that the produce of the fales in the year 1798-9 was unprecedented. Their immenfe amount, notwithstanding the continued demands upon the capital of the country for the purpofes of war, furnishes a convincing proof of the general commercial profperity. The internal profperity is likewife particu larly difplayed, in the greatly increased amount of one article, forming a very material part of thofe fales. The article alluded to is that of tea; which, though it may perhaps be termed an artificial necef fary of life, is become a neceffary few would be difpofed to relinquifh. The confumption of it has gradually increased since the year 1784, the time of pafling the Commutation Act. At that time it was fuppofed by fome gentlemen, that the quantity confumed would not exceed twelve millions of pounds; and I well remember differing in opinion on that fubject, with a most valuable character now no more, the late Mr. Nathaniel Smith, for whofe memory I fhall ever retain the highest refpect. The refult has been moft Hattering to my expectations, and moft beneficial to the country in point of revenue. By an account of the annual fales of tea from 1784 to the latest period, it appears that till the year 1790 they amounted, on the average, to fixteen million pounds weight, never below fifteen: from that time to 1796, the increase was progreffively to twenty-one millions. In the two following years they did not quite reach twenty millions; but in the year ending 1799 they

arrived