APPENDIX, continued. Appropriation of the Surplus Profits of the East-India Company. limited by Parliamentary regulations. The following is the substance of the Acts relative to it: (9 & 10 W. III, c. 44, s. 75.)-The Company are restricted (for the protection of the Bank of England, and in good faith to them) from borrowing, owing, or giving security for any other sum of money than shall be employed in their trade; and it is required, that all sums borrowed shall be borrowed only on their common seal, and shall not be payable at any time less than six months from the time of the borrowing thereof. (6 Ann. c. 17, s. 2.)-To enable the Company to advance a sum of £1,200,000 to Government, it is declared that the common seal of the Company may be made use of to borrow any sum or sums of money from time to time, upon account of the united stock and fund, so as the sum total of all the principal monies which at any one time should be owing upon the security of the said seal, should not exceed £1,500,000 over and above the monies which might lawfully be borrowed thereupon before the making of that Act. (7 Geo. I., c. 5, s. 32 & 33).-The Company were empowered to extend their bond debt to the extent of £5,000,000, with a proviso, that it should not be lawful for the Company to borrow, owe, or give security for any greater sum than should be employed in their trade, or should be advanced or lent on the bottom of any ship, or on goods on board any ship of the Company, or in the service of the Company, to any captain, agent, sailor, or other person which should at any time be employed in the service of the Company, with a similar proviso, as in the Act of Queen Anne, requiring that all monies borrowed should be borrowed on the common seal, and should not be made payable in less than six months. (17 Geo. II., c. 17, s. 8.)-In order to enable the Company to advance a further sum of £1,000,000 to the Public, they were empowered to borrow further sums of money upon the security of their seal, so as the sum total of all principal monies which should at any one time be owing upon the security of the said seal, should not exceed £1,000,000 over and above the monies which might lawfully be borrowed thereupon before the making of that Act. (23 Geo. II., c. 22.)-The Company were empowered to raise money by sale of annuities, upon the credit of annuities payable by the Public to the Company. (s. 6.)-It is enacted, that the several powers given to the Company by several Acts of Parliament then in force, for raising money by bond, should continue and be in force, but that the amount of the sums which the Company should raise by sale of annuities by virtue of that Act, should be applied towards the discharge of their then bond debt, and should be computed and considered as part of what they were so empowered to borrow. By the means mentioned in the Act last referred to, and otherwise, the bond debt of the Company was in fact reduced to the sum of £1,500,000, and did not exceed that sum at the time when the Act of Parliament next hereinafter mentioned was passed. (23 Geo. III., c. 26, s. 2.)—In order to give a temporary relief to the Company, in respect to their commercial debts, the Company are empowered to borrow money upon and issue bonds under their common seal, as the affairs of the Company might require, not exceeding the sum of £500,000 beyond the amount of the Company's then bond debt. (28 Geo. III., c. 29.)-Recites, that it was expedient, in consideration of the then state of the affairs of the Company, that they should be enabled to issue bonds for the purposes of their trade, and for discharging sundry demands to which they were liable, to a larger amount than they were then by law authorized to do; and it enacts, that it should be lawful for the Company to borrow money upon and issue bonds under their common seal, as the affairs of the Company might require, not exceeding the sum of £1,200,000 beyond the sum for which the Company might then by law issue their bonds. (33 Geo. III., c. 47.)-By this Act the Company were enabled to raise money by increasing their capital stock. (s. 14.) That (s. 14.) That out of the monies so raised, the Company were required, in the first place, to apply so much thereof as should be sufficient for the purpose of reducing their bond debt in Great Britain to the sum of £1,500,000. (s. 15.) That after the bond debt should be reduced to £1,500,000, it should not be lawful for the Company to increase their bond debt in Great Britain beyond that amount without the approbation of the Board of Commissioners for the Affairs of India, and that the whole increase should in nowise exceed £100,000. (34 Geo. III., c. 41.)-The Company were empowered to continue their bond debt at the sum of £2,000,000, without applying any further part of the money raised under the Act of 33d Geo. III., in reduction of it to £1,500,000; and the Company were further empowered, with the approbation and consent of the Commissioners for the Affairs of India, at any time or times thereafter, to borrow upon and issue bonds under their common seal for any further sum or sums of money, not exceeding in the whole £1,000,000, for the purposes of their trade, as circumstances might require. (57 Geo. III., c. 41.)-Reciting, that the affairs of the Company required the permanent advance of a considerable sum of money beyond what the Company could raise under the powers then vested in them by law; they are empowered to raise money by adding £2,000,000 to their capital stock. [Note.-The Company have never yet availed themselves of this Act.] (47 Geo. III., c.41.)—After reciting the three Acts last above referred to, the Company were empowered, with the consent of the Board of Commissioners for the Affairs of India, at any time or times thereafter, to borrow upon bond any further sums, not exceeding £2,000,000 sterling over and above such sunis as the Company could then lawfully raise on their bonds, and to apply the money so borrowed for such purposes as, under the Act of 37th Geo. III., the money to be raised by enlarging the capital stock was applicable. (51 Geo. III., c. 64.)-After reciting the Acts of 37 and 47 Geo. III. and that a considerable part of the debt secured by the engagement of the said Company in the EastIndies, and which was incurred by reason of territorial and political expenses in that country had then lately been discharged in India by means of bills drawn by the governments of the said Company in the East-Indies, upon their Court of Directors in London, and thereby it had become necessary for the said Company to provide in this country a much larger sum of money than in the ordinary course of their transactions could arise from the sales of their goods, and the ordinary receipts and means of the said Company: And reciting, that the Company had not yet increased their capital stock by virtue of the powers contained in the first-mentioned Act, and that it was expedient that their power to raise money upon their bonds should be enlarged, so that they might be enabled either to raise a further sum by bond or by increase of their capital stock; and therefore that the provision in the said last-recited Act, as to the application of the money to be raised by increasing the capital stock of the said Company, and as to the reduction of the power of the said Company to increase the bond debt in a certain case, should be repealed, and that other provisions should be made in respect thereof; it is enacted, "That it shall and may be lawful to and for the said Company, by and with the approbation and consent of the Board of Commissioners for the Affairs of India for the time being, at any time or times hereafter, to borrow, upon bonds to be issued under their common seal, any further sum and sums of money not exceeding in the whole the sum of £2,000,000 sterling over and above such sum and sums as the Company can now lawfully raise on their bonds, and to apply the money so to be borrowed and raised for such purposes as, under and by virtue of the said Act of the 37th year of the reign of his said Majesty, the money to be raised by enlarging the capital stock of the said Company is applicable, any thing contained in the said recited Act or any other Act notwithstanding. (51 Geo. III., c. 64, s. 2.)—“ And be it further enacted, that so much of the said Act of the 47th year of the reign of his present Majesty as provides that all the money to be raised APPENDIX, No. 19. continued. Appropriation of the Surplus Profits of the East-India Company. by APPENDIX, No. 19. continued. Appropriation of the Surplus Profits of the East-India Company. by enlarging the capital stock of the said Company as therein mentioned, should be applied towards the reduction of the bond debt of the said United Company until it should be so reduced to the sum which the said Company might then lawfully raise by bond, and as proVides, that in case the said Company should enlarge their capital stock, then that the sum which they were thereby empowered to raise by bond should be reduced, shall be and the same is hereby repealed. (s. 3.) —Provided always, and be it enacted, that when the said United Company shall have raised, under and by virtue of the said Act of the 37th year of the reign of his present Majesty, and of the said Act, of the 47th year of the reign of his present Majesty, and of this Act, such sums of money as together shall amount to the sum of £4,000,000 sterling, then and from thenceforth it shall not be lawful for the said Company to raise any further sum of money upon bond; and all money which from thenceforth shall be raised by increase of capital stock under and by virtue of the said first-mentioned Act, shall be applied in discharge of the said bond debt, until the said bond debt created by virtue of the said Act of the 47th year of the reign of his Majesty or this Act, together with the money to be raised by increase of capital as aforesaid, shall be reduced to the sum of £4,000,000 sterling. (s. 4.)" And whereas bonds, issued under the common seal of the said United Company, for money borrowed by them by virtue of the powers enabling them to borrow money upon bond, have usually been entered into, and have been expressed to have been made payable to the person, who for the time being has been the treasurer of the said United Company, or his assigns, and upon his indorsement thereof they have been sold and passed from one person to another by delivery of the possession thereof, and it is expedient that a legal effect should be given to such mode of transfer of the property in the said bonds and the money secured thereby; be it therefore further enacted, that all bonds issued or to be issued under the common seal of the said United Company, by virtue of any power by which they have been, are or hereafter may be authorized to borrow money upon their bonds, shall be assignable and transferable by delivery of the possession thereof; and upon every such assignment or transfer, the money secured by the bond so assigned or transferred, and due and to become due thereon, and the property in such bond, shall be absolutely vested as well at law as in equity in the person or persons, body or bodies politic and corporate, to whom the same shall be so assigned or transferred, and the person or persons, body or bodies politic and corporate, to whom any such bond shall be so assigned and transferred, and his, her, or their executors,administrators, and successors respectively, shall and may maintain his, her or their action for the principal and interest secured thereby and due thereon, or otherwise relating thereto, in like manner as the obligee or obligees named in any such bond, or his, her, and their executors, administrators, and successors, may now maintain any action thereon; and in every such action the plaintiff or plaintiffs shall recover his, her, or their debt, damages, and costs of suit; and if any such plaintiff or plaintiffs shall be nonsuited, or a verdict be given against him, her, or them, the defendant or defendants shall recover his, her, or their costs against the plaintiff or plaintiffs; and every such plaintiff or plaintiffs, defendant or defendants respectively recovering, may sue out execution for such debt, damages, and costs by capias, fieri facias, or elegit." The debt for money borrowed in the East-Indies originated in political necessity, and it is now quite certain that the whole of the money so borrowed has been absorbed by political expenses, occasioned by their possession of the Indian territories. The original creation of the Indian debt was not authorised either by Charter or Act of Parliament, and perhaps it was justifiable only by political necessity; it has, however, since its creation, been frequently recognized by Parliament, but its amount has never been limited. The terms on which loans of money have been made in India have been very different from each other; for some, the Company have been merely pledged for the repayment, and have been rendered liable to the lenders, either at home or abroad, wherever and whenever they should please to call for repayment: other loans have been made upon condition of repayment, on the expiration of specified periods, and sometimes at home and sometimes abroad, and APPENDIX, continued. and at other times either at home or abroad, at the option of the creditors. The principal of the larger part of the existing debt for money borrowed in India, according to the terms of the loans, is repayable in India, but the creditors are entitled, at their option, to be paid their interest from time to time in money in India, or by bills of exchange payable and to the Surplus Profits be provided for by the Company in London. (52 Geo. III, c. 135.)-The only Act of Parliament which separately relates to the Indian debt is 52 Geo. III. c.135, which recites that it had been resolved that a sum not exceeding £2,500,000 should be granted to his Majesty, for the purpose of enabling his Majesty to advance the like sum to the East-India Company, for their relief under their then present circumstances, and that it had been provided that the said sum should be raised by the creation of £3,000,000 reduced 3 per cent. annuities, and £1,400,000 consols; and that it had been agreed that the interest thereof, and the sums to be paid on account of the sinking fund, for redemption and for charges of management thereof, should be charged and be deemed and considered to be a charge upon the revenues of the British territories in the East-Indies, and should be advanced by the East-India Company in London, to answer the said interest, sinking fund and charges of management; and the Act then provides for creation of the annuities, and for payment by the East-India Company in London of the sums required for the interest, sinking fund, and charges of management, from time to time as they should become due. (52 Geo. III, cap. 135, sec. 11.)-Sect. 11 enacts, that the several sums to be paid for interest, sinking fund, and charges of management, should be and be deemed and considered to be a charge upon the revenues of the territorial acquisitions in the East-Indies, in like manner as if the interest payable in respect of the Indian debts, which had been or might be discharged by means of the said £2,500,000, had remained payable in the East-Indies, and that it should be lawful for the East-India Company to cause funds for the payment of such interest, sinking fund, and charges of management, and all sums of money which they should have become liable to pay in respect thereof, to be appropriated and provided for out of the Indian revenues, and to be remitted to England in the same order of preference in which the interest on such debts so discharged would have been payable if they had remained due and owing in the East-Indies. Since the time when the Company first acquired territory in the East-Indies, and the revenue thereof was claimed on the part of the Public, the funds of the Company, both at home and abroad, have from time to time at different periods been appropriated by agreement, confirmed by Acts of Parliament, to specific objects: and different provisions have existed at different times for the government of this country, having a cognizance of the management of the Company's affairs: these Acts are the 9th Geo. III, c.24; 13th Geo. III, c. 64; 19th Geo. III, c. 61; 20th Geo. III, c. 56; 21st Geo. III, c. 65, and 33d Geo. III, c. 52, the appropriating provisions of which have all determined: by the Acts of the 13th, 19th, and 20th Geo. III .the Company are required half-yearly, and by the Act 21st of Geo. III, they are required yearly (and by the last Act it is expressed to be in order to as certain the yearly net profits arising from the Company's trade and revenues), to cause to be made up, with as much accuracy as the nature of the case will admit, a statement of the profit and loss upon the whole of the trade and revenues of the Company, together with the state of the debts of the Company in England from the 1st day of March in every year to the 1st day of March in each succeeding year, which account was to be transmitted within 30 days after the day to which such statements or accounts were made up, to the Lords of the Treasury; and by the Act of the 21st of the King, the Company were required to make out at the same time with the account before directed, an account of the value of all the Company's goods which should remain unsold in their warehouses in England at the time of making up the said account, exclusive of discounts, customs, commission to supercargoes, and of all and every other charge whatsoever, to be deducted therefrom; and it was also required that accounts of the gross amount of all the territorial revenues received by the Company, and of all their disbursements, charges of management, civil, military, and other expenses and charges, and also of the said Company's Appropriation of of the East-India Company. APPENDIX, No. 19. continued. Appropriation of the Surplus Profits of the East-India Company. debts at each of their settlements in the East-Indies, and accounts of the net proceeds of each of their settlements in the East-Indies, should be made up annually, and delivered to the Lords of the Treasury on or as soon after the 1st day of March in each year as the receipt of the necessary materials from the East-Indies would allow to prepare such accounts. In the Act of the 33d of the King no direction is contained for the Company's delivering any accounts to the Lords of the Treasury, or for their making up any profit and loss account, but the following provision is substituted for the provisions in the Act of 21st Geo. III, as to making up accounts: (33 Geo. III. c. 52. s. 126.)-"And be it further enacted, that the Court of Directors of the said Company shall, within the first 14 sitting days next after the 30th day of March in every year, lay before both Houses of Parliament an account, made up according to the latest advices which shall have been received, and with as much accuracy as the nature of the case will admit, of the annual produce of the revenues of the British territories in India, distinguishing the same under the respective heads thereof at each of their several presidencies or settlements, with the amount of their sales of goods and stores within the limits of their exclusive trade; and of their annual disbursements within the said limits, distinguishing the same under the respective heads thereof, together with the latest estimate of the same; and also the amount of their debts abroad, with the rates of interest they respectively carry, and the annual amount of such interest; the state of their effects at each presidency or settlement and in China, consisting of cash and bills in their treasuries, goods, and stores and debts owing to the said Company, according to the latest advices which shall have been received thereof; and also a list of their several establishments in India and other parts within the limits of their exclusive trade, and the salaries and allowances payable by the said Company in respect thereof; and also another annual account, made up to the Ist day of March next preceding the delivery thereof to Parliament, containing the amount of the proceeds of the sale of the goods and merchandizes of the said Company in Great Britain, and of their commercial and other receipts, charges, and payments in Great Britain, under the several heads thereof, together with an estimate of the same for the current year, and a statement of their bond debts and simple-contract debts, with the rates of interest they respectively carry, and the amount of such interest, and the state of the cash remaining in their treasury, and other effects appertaining to the Company in Great Britain, or afloat: and if any new or increased salaries, establishments, or pensions, payable in Great Britain, shall have been granted or created within the preceding year, the particulars thereof shall be specially stated and inserted at the foot of such account." The following are the provisions by which the Company's funds abroad and at home are now specially appropriated : (53 Geo. III. c. 155, s. 55.)—“ And be it further enacted, that for and during the continuance of the possession and government of the said territorial acquisitions and revenues in the said United Company, the rents, revenues and profits arising from the said territorial acquisitions, after defraying the charges and expenses of collecting the same, shall be applied and disposed of to and for the uses and purposes hereinafter expressed, in the following order of preference, and to or for no other use or purpose, or in any other manner whatsoever, any Act or Acts of Parliament now in force to the contrary notwithstanding; (that is to say) In the first place, in defraying all the charges and expenses of raising and inaintaining the forces, as well European as Native, military, artillery and marine, on the establishments in the East-Indies and parts aforesaid, and of maintaining the forts and garrisons there, and providing warlike and naval stores; Secondly, in payment of the interest accruing on the debts owing or which may be hereafter incurred by the said Company in the East-Indies or parts aforesaid, including that portion thereof for which bills shall be demanded payable in England, and for which provision shall at all times be made by consignments or remittances to England, as the said Court of Directors, with the approbation of the said Commissioners for the Affairs of India, shall from time to time direct: Thirdly, |