No More Learning

? ? 156 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
of the treaty of 1771 which respected the alienation
of part of the Rajah's dominions; and we declared,
that, if the Nabob had not a just title to those territories before the conclusion of the treaty, we denied
that he obtained any right thereby, except such temporary sovereignty, for securing the payment of his
expenses, as is therein mentioned.
These instructions appear to have been executed
in the month of April, 1776; and by your letter of
the 14th May following you certified to us that the
Rajah had been put into the possession of the whole
country his father held in 1762, when the treaty was
concluded with the Nabob; but we do not find that
you came to any resolution, either antecedent or subsequent to this advice, either for questioning or impeaching the right of the Nabob to the sovereignty of Arnee, or expressive of any doubt of his title to it.
Nevertheless, we find, that, although the Board passed
no such resolution, yet your President, in his letter
to the Nabob of the 30th July and 24th August,
called upon his Highness to give up the possession
of Arnee to the Rajah; and the Rajah himself, in
several letters to us, particularly in those of 21st October, 1776, and the 7th of June, 1777, expressed his
expectation of our orders for delivering up that fort
and district to him; and so recently as the 15th of
October, 1783, he reminds us of his former application, and states, that the country of Arnee being
guarantied to him by the Company, it of course is
his right, but that it has not been given up to him,
and he therefore earnestly entreats our orders for
putting him into the possession of it. We also observe by your letter of the 14th of October, 1779,
that the Rajah had not then accounted for the Na
? ? ? ? APPENDIX. 1;
bob's peshcush since his restoration, but had assigned
as a reason for his withdrawing it, that the Nabob
had retained from him the district of Arnee, with
a certain other district, (lHanamantagoody,) which is
made the subject of another part of our present dispatches.
We have thus stated to you the result of our inqutiry into the grounds of the dispute relative to Arilee; and as the research has offered no evidence in support of the Rajah's claim, nor even any lights
whereby we can discover in what degree of relationship, by consanguinity, caste, or other circumstances,
the Rajah now stands, or formerly stood, with the
Killadar of Arnee, or the nature of his connection
with or command over that district, or the authority he exercised or assumed previous to the treaty
of 1771, we should think ourselves highly reprehensible in complying with the Rajah's request, - and
the more so, as it is expressly stated, in the treaty
of 1762, that this fort and district were then in the
possession of the Nabob, as well as the person of the
jaghiredar, on account of his disobedience, and were
restored him by the Nabob, in condescension to the
Rajah's request, upon such terms and stipulations as
could not, in our judgment, have been imposed by
the one or submitted to by the other, if the sovereignty of the one or the dependency of the other
had been at that time a matter of doubt.
Although these materials have not furnished us
with evidence in support of the Rajah's claim, they
are far from satisfactory to evince the justice of or
the political necessity for the Nabob's continuing to
withhold the jaghire from the descendants of Tremaul
Row; his hereditary right to that jaghire seems to
? ? ? ? 158 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
us to have been fully recognized by the stipulations
of the treaty of 1762, and so little doubted, that, on
his death, his widow was admitted by the Nabob to
hold it, on account, as may be presumed, of' the nonage of his grandson and heir, Seneewasarow, who
appears to have been confirmed in the jaghire, on her
death, by the Nabob, as the lineal heir and successor
to his grandfather.
With respect to Seneewasarow, it does not appear,
by any of the Proceedings in our possession, that he
was concerned in the misconduct of the braminees,
complained of by the Nabob in the year 1770, which
rendered it necessary for his Highness to take the
jaghire into his own hands, or that he was privy to
or could have prevented those disturbances.
We therefore direct, that, if the heir of Tremaul
Row is not at present in possession of the jaghire,
and has not, by any violation of the treaty, or act of
disobedience, incurred a forfeiture thereof, he be forthwith restored to the possession of it, according to the
terms and stipulations of the treaty of 1762. But if
any powerful motive of regard to the peace and tranquillity of the Carnatic shall in your judgment render it expedient to suspend the execution of these orders, in that case you are with all convenient speed
to transmit to us your proceedings thereupon, with
the full state of the facts, and of the reasons which
have actuated your conduct.
We have before given it as our opinion that the
stipulations of the treaty of 1762 do not apply to the
points remaining to be decided. But the late act of
Parliament having, from the nature of our connection
with the two powers in the Carnatic, pointed out the
expediency, and even necessity, of settling the several
? ? ? ? APPENDIX. 159
matters in dispute between them by a speedy and
permanent arrangement, we now proceed to give you
our instructions upon the several other heads of disputes before enumerated.
With respect to the fort and district of Hianamantagoody, we observe, that, on the restoration of the
Rajah in 1776, you informed us in your letter of the
14th of May, "That the Rajah had been put into
possession of the whole of the country his father held
in 1762, when the treaty was concluded with the
Nabob; and on the 25th of June you came to the
resolution of putting the Rajah into possession of
Hanamantagoody, on the ground of its appearing, on
reference to the Nabob's instructions to Mr. Dupre in
June, 1762, to his reply, and to the Rajah's representations of 25th March, 1771, that Hanamantagoody
was actually in the hands of the late Rajall at the
time of making the treaty of 1762. We have referred as well to those papers as to all the other proceedings on this subject, and must confess they fall very short of demonstrating to us the truth of that
fact. And we find, by the Secret Consultations of
Fort William of the 7th of August, 1776, that the
same doubt was entertained by our Governor-General
and Council.
But whether, in point of fact, the late Rajah was
or was not in possession of Hanamantagoody in 1762,
it is notorious that the Nabob had always claimed the
dominion of the countries of which this fort and district are a part.
We observe that the Nabob is now in the actual
possession of this fort and district; and we are not
warranted, by any document we have seen, to concur
with the wishes of the Rajah to dispossess him.
? ? ? ? 160 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
With regard to the government share of the crop of
1775-6, we observe by the dobeer's memorandum, recited in your Consultations of the 13th of May, 1776, that it was the established custom of the Tanjore
country to gather in the harvest and complete the
collections within the month of March, but that, for
the causes therein particularly stated, the harvest (and
of course the collection of the government share of
the crop) was delayed till the month of March was
over. We also observe that the Rajah was not restored to his kingdom until the 11th of April, 1776;
and from hence we infer, that, if the harvest and
collection had been finished at the usual time, the
Nabob (being then sovereign of the country) would
have received the full benefit of that year's crop.
Although the harvest and collection were delayed
beyond the usual time, yet we find by the Proceedings
of your government, and particularly by Mr. Mackay's
Minute of the 29th of May, 1776, and also by the dobeer's account, that the greatest part of the grain was cut down whilst the Nabob remained in the governinent of the country.
It is difficult, from the contradictory allegations on
the subject, to ascertain what was the precise amount
of the collections made after the Nabob ceased to have
the possession of the country. But whatever it was,
it appears from General Stuart's letter of the 2d of
April, 1777, that it had been asserted with good authority that the far greater part of the government share of the crop was plundered by individuals, and
never came to account in the Rajah's treasury.
Under all the circumstances of this case, we must
be of opinion that the government share of the crop
of 1776 belonged to the Nabob, as the then reigning
? ? ? ? APPENDIX. 161
sovereign of the kingdom of Tanjore, he being, de
facto, in the full and absolute possession of the government thereof; and consequently that the assignments made by him of the government share of the crop were valid.
Nevertheless, we would by no means be understood
by this opinion to suggest that any further demands
ought to be made upon the Rajah, in respect of such
parts of the government share of the crop as were
collected by his people.
For, on the contrary, after so great a length of time
as hath elapsed, we should think it highly unjust that
the Rajah should be now compelled either to pay the
supposed balances, whatever they may be, or be called!
upon to render a specific account of the collection,
made by his people.
The Rajah has already, in his letter to Governor
Stratton of the 21st of April, 1777, given his assurance, that the produce of the preceding year, accounted for to him, was little more than one lac of pagodas; and as you have acquainted us, by your let
ter of the 14th of October, 1779, that the Rajah has
actually paid into our treasury one lac of pagodas, by
way of deposit, on account of the Nabob's claims to
the crop, till our sentiments should be known, we
direct you to surcease any further demands from the
Rajah on that account.
We learn by the Proceedings, and particularly by
the Nabob's letter to Lord Pigot of the 6th of July,
1776, that the Nabob, previous to the restoration of
the Rajah, actually made assignments or granted
tunkaws of the whole of his share of the crop to his
creditors and troops; and that your government, (entertaining the same opinion as we do upon the quesVOL. III. 11
? ? ? ? 162 SPEECH ON THE NABOB OF ARCOT'S DEBTS. tion of right to that share,) by letter to the Rajah of the 20th of August, 1776, recommended to him " to restore to Mr. Benfield (one of the principal assignees or tunkaw-holders of the Nabob) the grain of the last year, which was in possession of his people, and said to be forcibly taken from them, --and further, to
give Mr. Benfield all reasonable assistance in recoveritig such debts as should appear to have been justly due to him from the inhabitants; and acquainted the
Rajah that it had been judged by a majority of the
Council that it was the Company's intention to let
the Nabob have the produce of the crop of 1776, but
that you had no intention that the Rajah should be
accountable for more than the government share,
whatever that might be; and that you did not mean
to do more than recommend to him to see justice
done, leaving the manner and time to himself. " Subsequent representations appear to have been made to the Rajah by your government on the same subject,
in favor of the Nabob's mortgages.
In answer to these applications, the Rajah, in his
letter to Mr. Stratton of the 12th January, 1777,
acquainted you "that he had given orders respecting the grain which Mr. Benfield had heaped up in his country; and with regard to the money due to
him by the farmers, that he had desired Mr. Benfield
to bring accounts of it, that he might limit a time for
the payment of it proportionably to their ability, and
that the necessary orders for stopping this money out
of the inhabitants' share of the crop had been sent to
the ryots and aumildars; that Mr. Benfield's goinastah was then present there, and oversaw his affairs; and that in everything that was just he (the Rajah)
willingly obeyed our Governor and Council. "
? ? ? ? APPENDIX. 163
Our opinion being that the Rajah ought to be answerable for no more than the amount of what he
admits was collected by his people for the government
share of the crop; and the Proceedings before us not
sufficiently explaining whether, in the sum which
the Rajah, by his before-mentioned letter of the 21st
April, 1777, admits to have collected, are included
those parts of the government share of the crop which
were taken by his people from Mr. Benfield, or from
any other of the assignees or tunkaw-holders; and
uninformed, as we also are, what compensation the
Rajah has or has not made to Mr. Benfield, or any
other of the parties from whom the grain was taken
by the Rajah's people; or whether, by means of the
Rajah's refusal so to do, or from any other circumstance, any. of the persons dispossessed of their grain
may have had recourse to the Nabob for satisfaction:
we are, for these reasons, incompetent to form a
proper judgment what disposition ought in justice to
be made of the one lac of pagodas deposited by the
Rajah. But as our sentiments and intentions are so
fully expressed upon the whole subject, we presume
you, who are upon the spot, can have no doubt or
difficulty in making such an application of the deposit as will be consistent with those principles of justice whereon our sentiments are founded. But should any such difficulty suggest itself, you will suspend
any application of the deposit, until you have futlly
explained the same to us, and have received our further orders.
With respect to the repairs of the Anicut and
banks of the Cavery we have upon various occasions
filly expressed to you our sentiments, and in particular in our general letter of the 4th July, 1777, we
? ? ? ? 164 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
referred you to the investigation and correspondence
on that subject of the year 1764, and to the report
made by Mr. James Bourchier, on his personal survey of the waters, and to several letters of the year 1765 and 1767; we also, by our said general letter,
acquainted you that it appeared to us perfectly reasonable that the Rajah should be permitted to repair those banks, and the Anicut, in the same manner as
had been practised in times past; and we directed
you to establish such regulations, by reference to former usage, for keeping the said banks in repair, as would be effectual, and remove all cause of complaint
in future.
Notwithstanding such our instructions, the Rajah,
in his letter to us of the 15th October, 1783, complains of the destruction of the Anicut; and as the cultivation of the Tanjore country appears, by all the
surveys and reports of our engineers employed on that
service, to depend altogether on a supply of water by
the Cavery, which can only be secured by keeping
the Anicut and banks in repair, we think it necessary
to repeat to you our orders of the 4th July, 1777, on
the subject of those repairs.
And further, as it appears by the survey and report of Mr. Pringle, that those repairs are attended
with a much heavier expense, when done with materials taken from the Tanjore district, than with those of Trichinopoly, and that the last-mentioned materials are far preferable to the other, it is our order, that, if any occurrences should make it necessary or
expedient, you apply to the Nabob, in our name, to
desire that his Highness will permit proper spots of
ground to be set out, and bounded by proper marks
on the Trichinopoly side, where the Rajah and his
? ? ? ? APPENDIX. 165
people may at all times take sand and earth sufficient
for these repairs; and that his Highness will grant
his lease of such spots of land for a certain term of
years to the Company, at a reasonable annual rent,
to the intent that through you the cultivation of the
Tanjore country may be secured, without infringing
or impairing the rights of the Nabob.
If any attempts have been or shall be hereafter
made to divert the water from'the Cavery into the
Coleroon, by contracting the current of the Upper or
Lower Cavery, by planting long grass, as mentioned
in Mr. Pringle's report, or by any other means, we
have no doubt his Highness, on a proper representation to him in our name, will prevent his people from
taking any measures detrimental to the Tanjore country, in the prosperity of which his Highness, as well as
the Company, is materially interested.
Should you succeed in reconciling the Nabob to
this measure, we think it but just that the proposed
lease shall remain no longer in force than whilst the
Rajah shall be punctual in the payment of the annual
peshcush to the Nabob, as well as the rent to be reserved for the spots of ground. And in order effectually to remove all future occasions of jealousy and complaint between the parties, --that the Rajah, on
the one hand, may be satisfied that all necessary works
for the cultivation of his country will be made and
kept in repair, and that the Nabob, on the other hand,
may be satisfied that no encroachment on his rights
can be made, nor any works detrimental to the fertility of his country erected, - we think it proper that
it should be recommended to the parties, as a part of
the adjustment of this very important point, that skilful engineers, appointed by the Company, be employed
? ? ? ? 166 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
at the Rajah's expense to conduct all the necessary
works, with the strictest attention to the respective
rights and interests of both parties. This will remove
every probability of injury or dispute. But should
either party unexpectedly conceive themselves to be
injured, immediate redress might be obtained by application to the government of Madras, under whose
appointment the engineer will act, without any discussion between the parties, which might disturb that
harmony which it is so much the wish of the Company to establish and preserve, as essential to the
prosperity and peace of the Carnatic.
Having now, in obedience to the directions of the
act of Parliament, upon the fullest consideration of
the indeterminate rights and pretensions of the Nabob and Rajah, pointed out such measures and arrangements as in our judgment and discretion will be best calculated to ascertain and settle the same,
we hope, that, upon a candid consideration of the
whole system, although each of the parties may feel
disappointed in our decision on particular points,
they will be convinced that we have been guided in
our investigation by principles of strict justice and
impartiality, and that the most anxious attention
has been paid to the substantial interests of both parties, and such a general and comprehensive plan of
arrangement proposed as will most effectually prevent all future dissatisfaction.
Approved by the Board.
HENRY DUNDAS,
WALSINGHAM,
W. W. GRENVILLE,
MULGRAVE.
WHITEHALL, October 27, 1784.
? ? ? ? APPENDIX. 167
No. 9.
Referred to from pp. 78 and 85.
Extract of a Letter from the Court of Directors to
the President and Council of EFort St. George, as
amended and approved by the Board of Control.
WE have taken into our consideration the several
advices and papers received from India, relative to
the assignment of the revenues of the Carnatic, from
the conclusion of the Bengal treaty to the date of
your letter in October, 1783, together with the representations of the Nabob of the Carnatic upon that subject; and although we might contend that the
agreement should subsist till we are fully reimbursed
his Highness's proportion of the expenses of the war,
yet, from a principle of moderation, and personal attachment to our old ally, his Highness the Nabob of
the Carnatic, for whose dignity and happiness we are
ever solicitous, and to cement more strongly, if pos
sible, that mutual harmony and confidence which our
connection makes so essentially necessary for our reciprocal safety and welfare, and for removing from his mind every idea of secret design on our part to lessen his
authority over the internal government of the Carnatic,
and the collection and administration of its revenues,
we have resolved that the assignment shall be surrendered; and we do accordingly direct our President, in whose name the assignment was taken, without delay,
to surrender the same to his Highness. But while
we have adopted this resolution, we repose entire confidence in his Highness, that, actuated by the same motives of liberality, and feelings of old friendship
? ? ? ? 168 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
and alliance, he will cheerfully and instantly accede
to such arrangements as are necessary to be adopted
for our common safety, and for preserving the respect, rights, and interests we enjoy in the Carnatic. The following are the heads and principles of such an
arrangement as we are decisively of opinion must be
adopted for these purposes, viz.
That, for making a provision for discharging the
Nabob's just debts to the Company and individuals,
(for the payment of which his Highness has so frequently expressed the greatest solicitude,) the Nabob shall give soucar security for the punctual payment, by
instalments, into the Company's treasury, of twelve
lacs of pagodas per annum, (as voluntarily proposed
by his Highness,) until those debts, with interest, shall
be discharged; and shall also consent that the equitable provision lately made by the British legislature for the liquidation of those debts, and such resolutions
and determinations as we shall hereafter make, under
the authority of that provision for the liquidation and
adjustment of the said debts, bond fide incurred, shall
be carried into full force and effect.
Should any difficulty arise between his Highness
and our government of Fort St. George, in respect to
the responsibility of the soucar security, or the times
and terms of the instalments, it is our pleasure that
you pay obedience to the orders and resolutions of
our Governor-General and Council of Bengal in respect thereto, not doubting but the Nabob will in
such case consent to abide by the determination of
our said supreme government.
Although, from the great confidence we repose ln
the honor and integrity of the Nabob, and from an
earnest desire not to subject him to any embarrass
? ? ? ? APPENDIX. 169
ment on this occasion, we have not proposed any specific assignment of territory or revenue for securing
the payments aforesaid, we nevertheless think it our
duty, as well to the private creditors, whose interests
in this respect have been so solemnly intrusted to us
by the late act of Parliament, as from regard to the
debt due to the Company, to insist on a declaration,
that, in the event of the failure of the security proposed, or in default of payment at the stipulated periods, we reserve to ourselves full right to demand of the Nabob such additional security, by assignment on
his country, as shall be effectual for answering the
purposes of the agreement.
After having conciliated the mind of the Nabob to
this measure, and adjusted the particulars, you are to
carry the same into execution by a formal deed between his Highness and the Company, according to
the tenor of these instructions,
As the administration of the British interests and
connections in India has in some respects assumed a
new shape by the late act of Parliament, and a general peace in India has been happily accomplished, the
present appears to us to be the proper period, and
which cannot without great imprudence be omitted,
to settle and arrange, by a just and equitable treaty,
a plan for the future defence and protection of the
Carnatic, both in time of peace and war, on a solid
and lasting foundation.
For the accomplishment of this great and necessary
object, we direct you, in the name of the Company,
to use your utmost endeavors to impress the expediency of, and the good effects to be derived from, this
measure, so strongly upon the minds of the Nabob
and the Rajah of Tanjore, as to prevail upon them,
? ? ? ? 170 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
jointly or separately, to enter into one or more treaty
or treaties with the Company, grounded on this principle of equity: That all the contracting parties shall
be bound to contribute jointly to the support of the
military force and garrisons, as well in peace as in
war.
That the military peace establishment shall be
forthwith settled and adjusted by the Company, in
pursuance of the authority and directions given to
them by the late act of Parliament.
As the payment of the troops and garrisons, occasional expenses in the repairs and improvements of fortifications, and other services incidental to a military establishment, must of necessity be punctual and accurate, no latitude of personal assurance or reciprocal confidence of either of the parties on the other must be accepted or required; but the Nabob and Rajah
must of necessity specify particular districts and revenues for securing the due and regular payment of
their contributions into the treasury of the Company,
with whom the charge of the defence of the coast, and
of course the power of the sword, must be exclusively intrusted, with power for the Company, in case of failure or default of such payments at the stipulated
times and seasons, to enter upon and possess such
districts, and to let the same to renters, to be confirmed by the Nabob and the Rajah respectively; but, trusting that in the execution of this part of the arrangement no undue obstruction will be given by
either of those powers, we direct that this part of
the treaty be coupled with a most positive assurance,
on our part, of our determination to support the dignity and authority of the Nabob and Rajah in the exclusive administration of the civil government and
? ? ? ? APPENDIX. 171
revenues of their respective countries; --and further,
that, in case of any hostility committed against the
territories of either of the contracting parties on the
coast of Coromandel, the whole revenues of their respective territories shall be considered as one common stock, to be appropriated in the common cause of their defence; that the Company, on their part,
shall engage to refrain, during the war, from the application of any part of their revenues to any commercial purposes whatsoever, but apply the whole, save only the ordinary charges of their civil government,
to the purposes of the war; that the Nabob and the
Rajah shall in like manner engage, on their parts, to
refrain, during the war, from the application of any
part of their revenues, save only what shall be actually necessary for the support of themselves and the
civil government of their respective countries, to any
other purposes than that of defraying the expenses of
such military operations as the Company may find it
necessary to carry on for the common safety of their
interests on the coast of Coromandel.
And to obviate any difficulties or misunderstanding which might arise from leaving indeterminate
the sum necessary to be appropriated for the civil
establishment of each of the respective powers, that
the sum be now ascertained which is indispensably
necessary to be applied to those purposes, and which
is to be held sacred under every emergency, and set
apart previous to the application of the rest of the
revenues, as hereby stipulated, for the purposes of
mutual or common defence against any enemy, for
clearing the incumbrance which may have become
necessarily incurred in addition to the expenditure
of those revenues which must be always deemed part
? ? ? ? 172 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
of the war establishment. This we think absolutely
necessary; as nothing can tend so much to the preservation of peace, and to prevent the renewal of hostilities, as the early putting the finances of the several powers upon a clear footing, and the showing to all
other powers that the Company, the Nabob, and the
Rajah are firmly united in one common cause, and
combined in one system of permanent and vigorous
defence, for the preservation of their respective territories and the general tranquillity.
That the whole aggregate revenue of the contracting parties shall, during the war, be under the application of the Company, and shall continue as long
after the war as shall be necessary, to discharge the
burdens contracted by it; but it must be declared
that this provision shall in no respect extend to deprive either the Nabob or the Rajah of the substantial
authority necessary to the collection of the revenues
of their respective countries. But it is meant that
they shall faithfully perform the conditions of this
arrangement; and if a division of any part of the
revenues to any other than the stipulated purposes
shall take place, the Company shall be entitled to
take upon themselves the collection of the revenue.
The Company are to engage, during the time they
shall administer the revenues, to produce to the other
contracting parties regular accounts of the application thereof to the purposes stipulated by the treaty,
and faithfully apply them inll support of the war.
Anld, lastly, as the defence of the Carnatic is thus
to rest with the Company, the Nabob shall be satisfied
of the propriety of avoiding all unnecessary expense,
and will therefore agree not to maintain a greater
number of troops than shall be necessary for the sup
? ? ? ? APPENDIX. 173
port of his dignity and the splendor of the durbar,
which number shall be specified in the treaty; and
if any military aid is requisite for the security and
collection of his revenues, other than the fixed establishment employed to enforce the ordinary collections and preserve the police of the country, the Company
must be bound to furnish him with such aid: the
Rajah of Tanjore must likewise become bound by
similar engagements, and be entitled to similar aid.
As, in virtue of the powers vested in Lord Macartney by the agreement of December, 1781, sundry
leases, of various periods, have been granted to renters, we direct that you apply to the Nabob, in our name, for his consent that they may be permitted to
hold their leases to the end of the stipulated term;
and we have great reliance* on the liberality and
spirit of accommodation manifested by the Nabob on
so many occasions, that he will be disposed to acquiesce in a proposition so just and reasonable. But if, contrary to our expectations, his Highness should
be impressed with any particular aversion to comply
with this proposition, we do not desire you to insist
upon it as an essential part of the arrangement to
take place between us; but, in that event, you must
take especial care to give such indemnification to the
renters for any loss they may sustain as you judge
to be reasonable.
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 assignment, and who have proved faithful
* For the ground of this "great reliance," see the papers in this
Appendix, No. 5; as also the Nabob's letters to the Court of Directors in this Appendix, No. 10.
? ? ? ? 174 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
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 assignment 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 embarrassing 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; * and as his Lordship had every reason to believe
* For the full proof of this necessity, Lord Macartney's whole correspondence on the subject may be referred to. Without the act here condemned, not one of the acts commended in the preceding paragraph could be performed. By referring to the Nabob's letters in this Appendix it will be seen what sort of task a governor has on his
hands, who is to use, according to the direction of this letter, " acts
of address, civility, and conciliation," and to pay, upon all occasions,
the highest attention, to persons who at the very time are falsely, and
in the grossest terms, accusing him of peculation, corruption, treason,
and every species of malversation in office. The recommendation,
? ? ? ? APPENDTX. 175
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 sullspicion 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
under menaces of such behavior, and under such circumstances, conveys a lesson the tendency of which cannot be misunderstood.
? ? ? ? 176 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
to us with prudence, discretion, and all possible secre.
cy, 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. *
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 constituted by the
original bonds of that year, bearing interest at 101. 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
101. 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
* The delicacy here recommended, in the expressions concerning
conduct ", with which the safety of our settlements is essentially connected," is a lesson of the same nature with the former. Dangerous
designs, if truly such, ought to be expressed according to their nature
and qualities. And as for the secrecy recommended concerning the
designs here alluded to, nothing can be more absurd; as they appear
very fully and directly in the papers published by the authority of
the Court of Directors in 1775, and may be easily discerned from the
propositions for the Bengal treaty, published in the Reports of the
Committee of Secrecy, and in the Reports of the Select Committee.
The keeping of such secrets too long has been one cause of the Carnatic war, and of the ruin of our affairs in India.
? ? ? ? APPENDIX. 177
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 advertisement
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 countrygovernments in money matters) to be in full forceand 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 circumstance of the consolidation of the said debt being made known to us,
we did, on the 23rd of December, 1778, write to you,
in the following terms: "Your account of the Nabob's private debts is very alarming; but from whatVOL. III. 12
? ? ? ? 178 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
ever 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 circumstances 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 assignment 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 circumstances, 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 establishing 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 substan
? ? ? ? APPENDIX. 179
tial 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 classes of debts. But
although we so far adopt the general presumption in
their favor as to admit them to a participation 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
pagodas, 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, -
? ? ? ? 180 SPEECH ON THE NABOB OF ARCOT'S DEBTS. 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 101. per cent, and towards the discharge of the principal of the debt of 1767. This arrangement to continue till the principal 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
principal 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 pagodas, 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 circumstances of the different debts; and
? ? ? ? APPENDIX. 181
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 tile
fund under your distribution, but shall be prollibited
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 embarrassments 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 classes 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 agailnst any of our ser
? ? ? ? 182 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
vants, 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 embarrassments,
both to his own and the Company's affairs, which the
ellormous 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 assistance 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
? ? ? ? APPENDIX. 183
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 unde"
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 Diree
tors of the jEast 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 institution, 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 institution, as we on
our part are thoroughly satisfied that you have no
wish to encroach on the legal powers of the East In
? ? ? ? 1 84 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
dia 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 pagodas 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 classes.
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 classes to stand free from imputation, (as we incline to believe they do,) no iinjury 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 assignment of the land-revenues to the
servants of the Company, acting in the capacity of
native bankers, have been accumulated, 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
? ? ? ? APPENDIX. 185
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 assistance to be given the private creditors to be such as should be consistent with our own rights. The Nabob had, long before passing
the act, by treaty with our Bengal government, agreed
to pay us seven lacs of pagodas, 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 entitle
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 Hanaman
? ? ? ? 186 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
tagoody, beg leave to observe, with due deference to
your judgment, that the directions we had given in
these paragraphs which. did not obtain your approbation1 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.
WE think it proper, considering the particular nature of the subject, to state to you the following
remarks' on that part of your representation which
relates to the plan for the discharging of the Nabob's
debts.
1st. You compute the revenue which the Carnatic
may be expected to produce only at twenty lacs of
pagodas. If we concurred with you in this opinion,
we should certainly feel our hopes of advantage to all
the parties from this arrangement considerably diminished. But we trust that we are not too sanguine on this head, when we place the greatest reliance on the
estimate transmitted to you by your President of
Fort St. George, having there the best means of
information upon the fact, and stating it with a particular view to the subject matter of these paragraphs. Some allowance, we are sensible, must be made for
the difference of collection in the Nabob's hands, but,
? ? ? ? APPENDIX. 187
we trust, not such as to reduce the receipt nearly to
what you suppose.
2ndly. In making up the amount of the private
debts, you take in compound interest at the different
rates specified in our paragraph. This it was not our
intention to allow; and lest any misconception should
arise on the spot, we have added an express direction
that the debts be made up with simple interest only, from the time of their respective consolidation.
Clause F f.
3rdly. We have also the strongest grounds to believe that the debts will be in other respects considerably less than they are now computed by you; and consequently, the Company's annual proportion of
the twelve lacs will be larger than it appears on your
estimate. But even on your own statement of it, if
we add to the 150,0001. , or 3,75,000 pagodas, (which
you take as the annual proportion to be received by
the Company for five years to the end of 1789,) the
annual amount of the Tanjore peshcush for the same
period, and the arrears on the peshcush, (proposed by
Lord Macartney to be received in three years,) the
whole will make a sum not falling very short of pagodas 35,00,000, the amount of pagodas 7,00,000 per
annum for the same period. And if we carry our calculations farther, it will appear, that, both by the plan
proposed by the Nabob and adopted in your paragraphs, and by that which we transmitted to you, the
debt from the Nabob, if taken at 3,000,0001. , will be
discharged nearly at the same period, viz. , in the
course of the eleventh year. We cannot, therefore, be
of opinion that there is the smallest ground for objecting to this arrangement, as injurious to the interests
of the Company, even if the measure were to be con
? ? ? ? 188 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
sidered on the mere ground of expediency, and with
a view only to the wisdom of reestablishing credit
and circulation in a commercial settlement, without
any consideration of those motives of attention to the
feelings and honor of the Nabob, of humanity to individuals, and of justice to persons in your service
and living under your protection, which have actuated the legislature, and which afford not only justifiable, but commendable grounds for your conduct. Impressed with this conviction, we have not made
any alteration in the general outlines of the arrangement which we had before transmitted to you. But,
as the amount of the Nabob's revenue is matter of
uncertain conjecture, and as it does not appear just
to us that any deficiency should fall wholly on any
one class of these debts, we have added a direction to
your government of Fort St. George, that, if, notwithstanding the provisions contained in our former paragraphs, any deficiency should arise, the payments of what shall be received shall be made in the same
proportion which would have obtained in the division
of the whole twelve lacs, had they been paid.
No. 10.
Referred to from p. 103.
[THE following extracts are subjoined, to show the
matter and the style of representation employed by
those who have obtained that ascendency over the
Nabob of Arcot which is described in the letter
marked No. 6 of the present Appendix, and which
? ? ? ? APPENDIX. 189
is so totally destructive of the authority and credit
of the lawful British government at Madras. The
charges made by these persons have been solemnly
denied by Lord Macartney; and to judge from the
character of the parties accused and accusing, they
are probably void of all foundation. But as the letters are in the name and under the signature of a
person of great rank and consequence among the
natives, - as they contain matter of the most serious
nature, --as they charge the most enormous crimes,
and corruptions of the grossest kind, on a British
governor, - and as they refer to the Nabob's minister
in Great Britain for proof and further elucidation
of the matters complained of, -common decency
and common policy demanded an inquiry into their
truth or falsehood. The writing is obviously the
product of some English pen. If, on inquiry, these
charges should be made good, (a thing very unlikely,) the party accused would become a just object of
animadversion. If they should be found (as in all
probability they would be found) false and calumnious, and' supported by forgery, then the censure
would fall on the accuser; at the same time the necessity would be manifest for proper measures towards
the security of government against such infamous accusations. It is as necessary to protect the honest
fame of virtuous governors as it is to punish the
corrupt and tyrannical. But neither the Court of
Directors nor the Board of Control have made any
inquiry into the truth or falsehood of these charges.
They have covered over the accusers and accused
with abundance of compliments; they have insinuated some oblique censures; and they have recommended perfect harmony between the chargers of
? ? ? ? 190 SPEECH ON THE NABOB OF ARCOT'S DEBTS.
corruption and peculation and the persons charged
with these crimes. ]
13th October, 1782. -Extract of a Translation of a
Letter from the Nabob of Arcot to the Chairman of
the Court of Directors of the East India Company.
FATALLY for me, and for the public interest, the
Company's favor and my unbounded confidence have
been lavished on a man totally unfit for the exalted
station in which he has been placed, and unworthy of
the trusts that have been reposed in him. When I
speak of one who has so deeply stabbed my honor,
my wounds bleed afresh, and I must be allowed that
freedom of expression which the galling reflection of
my injuries and my misfortunes naturally draws from
me. Shall your servants, unchecked, unrestrained,
and unpunished, gratify their private views and ambition at the expense of my honor, my peace, and my happiness, and to the ruin of my country, as well as
of all your affairs? No sooner had Lord Macartney
obtained the favorite object of his ambition than he
betrayed the greatest insolence towards me, the most
glaring neglect of the common civilities and attentions paid me by all former governors in the worst of times, and even by the most inveterate of my
enemies. He insulted my servants, endeavored to
defame my character by unjustly censuring my administration, and extended his boundless usurpation to the whole government of my dominions, in all the
branches of judicature and police; and, in violation
of the express articles of the agreements, proceeded
to send renters into the countries, unapproved of by
me, men of bad character, and unequal to my man
? ? ? ? APPENDIX. 191
agement or responsibility. Though he is chargeable
with the greatest acts of cruelty, even to the shedding the blood and cutting off the noses and ears of
my subjects, by those exercising his authority in the
countries, and that even the duties of religion and
public worship have been interrupted or prevented,
and though he carries on all his business by the arbitrary exertion of military force, yet does he not collect from the countries one fourth of the revenue that should be produced.