LITMIR.BIZ

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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 12l. 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.

      Having so far attained the purposes of the assignment, our attention was next turned to the heavy expenses entailed upon the different provinces; and here, we confess, our astonishment was raised to the highest pitch. In the Trichinopoly country the standing disbursements appeared, by the Nabob's own accounts, to be one lac of rupees more than the receipts. In other districts the charges were not in so high a proportion, but still rated on a most extravagant scale; and we saw, by every account that was brought before us, the absolute necessity

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