The Works of the Right Honourable Edmund Burke
Chapter 60 : It equally concerns the honor of our government, that such natives as may have been put

It equally concerns the honor of our government, that such natives as may have been put in any degree of authority over the collections, in consequence of the deed of a.s.signment, and who have proved faithful to their trust, shall not suffer inconvenience on account of their fidelity.

Having thus given our sentiments at large, as well for the surrender of the a.s.signment as with regard to those arrangements which we think necessary to adopt in consequence thereof, we cannot dismiss this subject without expressing our highest approbation of _the ability, moderation, and command of temper_ with which our President at Madras has conducted himself in the management of a very delicate and embarra.s.sing situation. His conduct, and that of the Select Committee of Fort St. George, in the execution of the trust delegated to Lord Macartney by the Nabob Mahomed Ali, has been vigorous and effectual, for the purpose of realizing as great a revenue, at a crisis of necessity, as the nature of the case admitted; and the imputation of corruption, suggested in some of the Proceedings, appears to be totally groundless and unwarranted.

While we find so much to applaud, it is with regret we are induced to advert to anything which may appear worthy of blame: as the step of issuing the Torana Chits in Lord Macartney's own name can only be justified upon the ground of absolute necessity;[71] and as his Lords.h.i.+p had every reason to believe that the demand, when made, would be irksome and disagreeable to the feelings of Mahomed Ali, every precaution ought to have been used and more time allowed for proving that necessity, by previous acts of address, civility, and conciliation, applied for the purposes of obtaining his authority to such a measure.

It appears to us that more of this might have been used; and therefore we cannot consider the omission of it as blameless, consistent with our wishes of sanctifying no act contrary to the spirit of the agreement, or derogatory to the authority of the Nabob of the Carnatic, in the exercise of any of his just rights in the government of the people under his authority.

We likewise observe, the Nabob has complained that no official communication was made to him of the peace, for near a month after the cessation of arms took place. This, and every other mark of disrespect to the Nabob, will ever appear highly reprehensible in our eyes; and we direct that you do, upon all occasions, pay the highest attention to him and his family.

Lord Macartney, in his Minute of the 9th of September last, has been fully under our consideration. We shall ever applaud the prudence and foresight of our servants which induces them to collect and communicate to us every opinion, or even ground of suspicion they may entertain, relative to any of the powers in India with whose conduct our interest and the safety of our settlements is essentially connected. At the same time we earnestly recommend that those opinions and speculations be communicated to us with prudence, discretion, and all possible secrecy, _and the terms in which they are conveyed be expressed in a manner as little offensive as possible to the powers whom they may concern and into whose hands they may fall._[72]

We next proceed to give you our sentiments respecting the private debts of the Nabob; _and we cannot but acknowledge_ that the origin and justice, both of the loan of 1767, and the loan of 1777, commonly called the Cavalry Loan, appear to us clear and indisputable, agreeable to the true sense and spirit of the late act of Parliament.

In speaking of the loan of 1767, we are to be understood as speaking of the debt as const.i.tuted by the original bonds of that year, bearing interest at 10_l._ per cent; and therefore, if any of the Nabob's creditors, under a pretence that their debts made part of the consolidated debt of 1767, although secured by bonds of a subsequent date, carrying an interest exceeding 10_l._ per cent, shall claim the benefit of the following orders, we direct that you pay no regard to such claims, without further especial instructions for that purpose.

With respect to the consolidated debt of 1777, it certainly stands upon a less favorable footing. So early as the 27th March, 1769, it was ordered by our then President and Council of Fort St. George, that, for the preventing all persons living under the Company's protection from having any dealings with any of the country powers or their ministers without the knowledge or consent of the Board, an advertis.e.m.e.nt should be published, by fixing it up at the sea-gate, and sending round a copy to the Company's servants and inhabitants, and to the different subordinates, and our garrisons, and giving it out in general orders, stating therein that the President and Council did consider the irreversible order of the Court of Directors of the year 1714 (whereby their people were prohibited from having any dealings with the country governments in money matters) to be in full force and vigor, and thereby expressly forbidding all servants of the Company, and other Europeans under their jurisdiction, to make loans or have any money transactions with any of the princes or states in India, without special license and permission of the President and Council for the time being, except only in the particular cases there mentioned, and declaring that any wilful deviation therefrom should be deemed a breach of orders, and treated as such. And on the 4th of March, 1778, it was resolved by our President and Council of Fort St George, that the consolidated debt of 1777 was not, on any respect whatever, conducted under the auspices or protection of that government; and on the circ.u.mstance of the consolidation of the said debt being made known to us, we did, on the 28rd of December, 1778, write to you in the following terms: "Your account of the Nabob's private debts is very alarming; but from whatever cause or causes those debts have been contracted or increased, we hereby repeat our orders, that the sanction of the Company be on no account given to any kind of security for the payment or liquidation of any part thereof, (except by the express authority of the Court of Directors,) on any account or pretence whatever."

The loan of 1777, therefore, has no sanction or authority from us; and in considering the situation and circ.u.mstances of this loan, we cannot omit to observe, that the creditors could not be ignorant how greatly the affairs of the Nabob were at that time deranged, and that his debt to the Company was then very considerable,--the payment of which the parties took the most effectual means to postpone, by procuring an a.s.signment of such specific revenues for the discharge of their own debts as alone could have enabled the Nabob to have discharged that of the Company.

Under all these circ.u.mstances, we should be warranted to refuse our aid or protection in the recovery of this loan. But when we consider the inexpediency of keeping the subject of the Nabob's debts longer afloat than is absolutely necessary,--when we consider how much the final conclusion of this business will tend to promote tranquillity, credit, and circulation of property in the Carnatic,--and when we consider that the debtor concurs with the creditor in establis.h.i.+ng the justice of those debts consolidated in 1777 into gross sums, for which bonds were given, liable to be transferred to persons different from the original creditors, and having no share or knowledge of the transactions in which the debts originated, and of course how little ground there is to expect any substantial good to result from an unlimited investigation into them, we have resolved so far to recognize the justice of those debts as to extend to them that protection which, upon _more_ forcible grounds, we have seen cause to allow to the other two cla.s.ses of debts. But although we so far adopt the general presumption in their favor as to admit them to a partic.i.p.ation in the manner hereafter directed, we do not mean to debar you from receiving any complaints against those debts of 1777, at the instance either of the Nabob himself, or of other creditors injured by their being so admitted, or by any other persons having a proper interest, or stating reasonable grounds of objection; and if any complaints are offered, we order that the grounds of all such be attentively examined by you, and be transmitted to us, together with the evidence adduced in support of them, for our final decision; and as we have before directed that the sum of twelve lacs of paG.o.das, to be received annually from the Nabob, should be paid into our treasury, it is our order that the same be distributed according to the following arrangement.

That the debt be made up in the following manner, viz.

The debt consolidated in 1767 to be made up to the end of the year 1784, with the current interest at ten per cent.

The Cavalry Loan to be made up to the same period, with the current interest at twelve per cent.

The debt consolidated in 1777 to be made up to the same period, with the current interest at twelve per cent, to November, 1781, and from thence with the current interest at six per cent.

The twelve lacs annually to be received are then to be applied,--

1. To the growing interest on the Cavalry Loan, at twelve per cent.

2. To the growing interest on the debt of 1777, at six per cent.

The remainder to be equally divided: one half to be applied to the extinction of the Company's debt; the other half to be applied to the payment of growing interest at 10_l._ per cent, and towards the discharge of the princ.i.p.al of the debt of 1767.

This arrangement to continue till the princ.i.p.al of the debt 1767 is discharged.

The application of the twelve lacs is, then, to be,--

1. To the interest of the debt of 1777, as above. The remainder to be then equally divided,--one half towards the discharge of the current interest and princ.i.p.al of the Cavalry Loan, and the other half towards the discharge of the Company's debt.

When the Cavalry Loan shall be thus discharged, there shall then be paid towards the discharge of the Company's debt seven lacs.

To the growing interest and capital of the 1777 loan, five lacs.

When the Company's debt shall be discharged, the whole is then to be applied in discharge of the debt 1777.

If the Nabob shall be prevailed upon to apply the arrears and growing payments of the Tanjore peshcush in further discharge of his debts, over and above the twelve lacs of paG.o.das, we direct that the whole of that payment, when made, shall be applied towards the reduction of the Company's debt.

We have laid down these general rules of distribution, as appearing to us founded on justice, and the relative circ.u.mstances of the different debts; and therefore we give our authority and protection to them only on the supposition that they who ask our protection acquiesce in the condition upon which it is given; and therefore we expressly order, that, if any creditor of the Nabob, a servant of the Company, or being under our protection, shall refuse to express his acquiescence in these arrangements, he shall not only be excluded from receiving any share of the fund under your distribution, but shall be prohibited from taking any separate measures to recover his debt from the Nabob: it being one great inducement to our adopting this arrangement, that the Nabob shall be relieved from all further disquietude by the importunities of his individual creditors, and be left at liberty to pursue those measures for the prosperity of his country which the embarra.s.sments of his situation have hitherto deprived him of the means of exerting. And we further direct, that, if any creditor shall be found refractory, or disposed to disturb the arrangement we have suggested, he shall be dismissed the service, and sent home to England.

The directions we have given only apply to the three cla.s.ses of debts which have come under our observation. It has been surmised that the Nabob has of late contracted further debts: if any of these are due to British subjects, we forbid any countenance or protection whatever to be given to them, until the debt is fully investigated, the nature of it reported home, and our special instructions upon it received.

We cannot conclude this subject without adverting in the strongest terms to the prohibitions which have from time to time issued under the authority of different Courts of Directors against any of our servants, or of those under our protection, having any money transactions with any of the country powers, without the knowledge and previous consent of our respective governments abroad. We are happy to find that the Nabob, sensible of the great embarra.s.sments, both to his own and the Company's affairs, which the enormous amount of their private claims have occasioned, is willing to engage not to incur any new debts with individuals, and we think little difficulty will be found in persuading his Highness into a positive stipulation for that purpose. And though the legislature has thus humanely interfered in behalf of such individuals as might otherwise have been reduced to great distress by the past transactions, we hereby, in the most pointed and positive terms, repeat our prohibition upon this subject, and direct that no person, being a servant of the Company, or being under our protection, shall, on any pretence whatever, be concerned in any loan or other money transaction with any of the country powers, unless with the knowledge and express permission of our respective governments. And if any of our servants, or others, being under our protection, shall be discovered in any respect counteracting these orders, we strictly enjoin you to take the first opportunity of sending them home to England, to be punished as guilty of disobedience of orders, and no protection or a.s.sistance of the Company shall be given for the recovery of any loans connected with such transactions. Your particular attention to this subject is strictly enjoined; and any connivance on your parts to a breach of our orders upon it will incur our highest displeasure. In order to put an end to those intrigues which have been so successfully carried on at the Nabob's durbar, we repeat our prohibition in the strongest terms respecting any intercourse between British subjects and the Nabob and his family; as we are convinced that such an intercourse has been carried on greatly to the detriment and expense of the Nabob, and merely to the advantage of individuals. We therefore direct that all persons who shall offend against the letter and spirit of this necessary order, whether in the Company's service or under their protection, be forthwith sent to England.

Approved by the Board.

HENRY DUNDAS, WALSINGHAM, W.W. GRENVILLE, MULGRAVE.

WHITEHALL, 15th Oct. 1784.

_Extract from the Representation of the Court of Directors of the East India Company._

MY LORDS AND GENTLEMEN,--

It is with extreme concern that we express a difference of opinion with your right honorable board, in this early exercise of your controlling power; but in so novel an inst.i.tution, it can scarce be thought extraordinary, if the exact boundaries of our respective functions and duties should not at once, on either side, be precisely and familiarly understood, and therefore confide in your justice and candor for believing that we have no wish to invade or frustrate the salutary purposes of your inst.i.tution, as we on our part are thoroughly satisfied that you have no wish to encroach on the legal powers of the East India Company. We shall proceed to state our objections to such of the amendments as appear to us to be either insufficient, inexpedient, or unwarranted.

6th. Concerning the private debts of the Nabob of Arcot, and the application of the fund of twelve lacs of paG.o.das per annum.

Under this head you are pleased, in lieu of our paragraphs, to substantiate at once the justice of all those demands which the act requires us to investigate, subject only to a right reserved to the Nabob, or any other party concerned, to question the justice of any debt falling within the last of the three cla.s.ses. We submit, that at least the opportunity of questioning, within the limited time, the justice of any of the debts, ought to have been fully preserved; and supposing the first and second cla.s.ses to stand free from imputation, (as we incline to believe they do,) no injury can result to individuals from such discussion: and we further submit to your consideration, how far the express direction of the act to examine the nature and origin of the debts has been by the amended paragraphs complied with; and whether at least the rate of interest, according to which the debts arising from soucar a.s.signment of the land-revenues to the servants of the Company, acting in the capacity of native bankers, have been acc.u.mulated, ought not to be inquired into, as well as the reasonableness of the deduction of twenty-five per cent which the Bengal government directed to be made from a great part of the debts on certain conditions. But to your appropriation of the fund our duty requires that we should state our strongest dissent. Our right to be paid the arrears of those expenses by which, almost to our own ruin, we have preserved the country and all the property connected with it from falling a prey to a foreign conqueror, surely stands paramount to all claims for former debts upon the revenues of a country so preserved, even if the legislature had not expressly limited the a.s.sistance to be given the private creditors to be such as should be consistent with our own rights. The Nabob had, long before pa.s.sing the act, by treaty with our Bengal government, agreed to pay us seven lacs of paG.o.das, as part of the twelve lacs, in liquidation of those arrears; of which seven lacs the arrangement you have been pleased to lay down would take away from us more than the half, and give it to private creditors, of whose demands there are only about a sixth part which do not stand in a predicament that you declare would not ent.i.tle them to any aid or protection from us in the recovery thereof, were it not upon grounds of expediency, as will more particularly appear by the annexed estimate. Until our debt shall be discharged, we can by no means consent to give up any part of the seven lacs to the private creditors; and we humbly apprehend that in this declaration we do not exceed the limits of the authority and rights vested in us.

THE RIGHT HONORABLE THE COMMISSIONERS FOR THE AFFAIRS OF INDIA.

_The Representation of the Court of Directors of the East India Company_.

My Lords and Gentlemen,--

The Court, having duly attended to your reasonings and decisions on the subjects of Arnee and Hanamantagoody, beg leave to observe, with due deference to your judgment, that the directions we had given in these paragraphs which did not obtain your approbation still appear to us to have been consistent with justice, and agreeable to the late act of Parliament, which pointed out to us, as we apprehended, the treaty of 1762 as our guide.

Signed by order of the said Court,

THO. MORTON, _Sec_.

EAST INDIA HOUSE, the 3rd November, 1784.

_Extract of a Letter from the Commissioners for the Affairs of India, to the Court of Directors, dated 3rd November, 1784, in Answer to their Remonstrance_.

SIXTH ARTICLE.