The Sun.
London, England, 1846-10-13 00:00:00

"TO THE RIGHT HON. THE LORD JOHN RUSSELL, M.P.
FIRST LORD OF HER MAJESTY'S TREASURY.
" The Memorial of the Directors of the Chamber of
Commerce and Manufactures at Manchester
" Showeth—That your memorialists deem it high
time to draw the special attention of her Majesty's Ca-
binet to points in the administration of Indian affairs,
which they consider to be directly opposed to the spirit,
if not to the actual letter, of the Act 3d and 4th of
William IV., cap. 85, and most injurious to the perma
nentinterests of their fellow-subjects in India, as well as
to the trade between Great Britain and that portion of
the empire.
" That your memorialists hold that by the Act just
named, it was intended by the Legislature that all right
in the Hon. the East India Company to trade for their
own profit, in common with others, his Majesty's sub-
jects, should be suspended during such time as the go-
vernment of the said territory should be confided to them.
" That notwithstanding the will of Parliament so dis-
tinctly laid down, the Honourable the East India Com-
pany commenced, immediately after the passing of
the Act, a system of dealing which doubly interfered
with others of the trading subjects of his Majesty,
by disturbing the prices both of goods and
money. Under the plea of securing the safe receipt
of funds for the discharge of the honourable
Company's liabilities in this country, warehouses were
opened at all the Presidencies, where money advances
were made to those who were willing to deposit goods,
to be controlled by consignment to the company in
Leadenhall-street; and at the-.same time they issued
bills on India in return for mom paid to them in Lon-
don. The effects of this doubt 9 -operation could not
long be concealed; the markets Of- India were ruffled—.
becoming elevated at one time by the power which the
Company's money advances there gave to bold adven-
turers and reckless speculators, and languid at another;
when those borrowed means were locked up. Facti-
tious disturbances like these render impossible that safe
and equitable system of commerce; by whiCh alone the
solid interests of both producer and consumers cast be
internationally davelopedi,and these disturbances have
been further aggravated by the arbitrary manner in
which the Honourable Company have been in the habit
of fixing the rate of exchange at which their advances
in India, or their bills in London, have been granted.
It is, therefore, no source of wonder to your memorial-
ists that India has been visited by periods of commercial
depression and distress more frequently and more se-
verely than any other portion of her Majesty's domi-
nions; and they do not hesitate to express their opinion
that such will continue to be the case so long as the sys-
tem of which they complain shall be permitted to Le
practised.
" That these sentiments have long been entertained
by your memorialists, for they were submitted by this
Chamber to the President of the Board of Control by a
deputation, in February, 1835, and, at his desire, in a
detailed statement dated March 18, 1835 ; by memorials
to the First Lord of the Treasury, and to the Board of
Trade, on February 10, 1836 ; and again to the Board
of Control in a memorial, dated December 7, 1843. All
complaint was ineffectual, and the system continued ;
but the evils attending it attracted at last the attention
of the Governor-General in Council, and the opinions
of your memorialists received the strongest confirms
tion in the publication of the following important do
cument

"'Fort William, Financial Department,
Aug. 4, 1843.
" NoTurcATioN.—Notice is hereby given, that the
Government of India has recommended to the home au-
thoriri s the expediency of discontinuing, as soon as pos-
sible, the present system of making advances in India
upon the security of goods to be Hypothecated to the
East India Company.
" The Governor-General in Council is of opinion
that the full supplies required to meet the wants of the
Home Treasury can be raised in England by the Ho-
nourable the Court of Directors by the sale of bills on
India, without any necessity for the intervention of the
Government in the Indian markets, and he is desirous
of relieving the trade of India from the irregular in-
trusion of a competition which is governed principally
by the political exigencies of the State.
"'The Governor-General in Council is aware that
private interest may be injuriously affected by the sud-
den discontinuance of any system that has long been in
operation, and he issues this timely notification of his
views upon a subject of the gravest importance to the
mercantile community connected with the trade of India,
in order that they may not be unprepared for a change
of measures which the Government .of India is urging
strongly on, the attention of the home authorities, and
will be ready to carry out at the earliest opportunity.
" By order of the Right Honourable the Governor-
General in Council.

(Signed) J. A. DORIN, ,
"',Secretary totthe.GovernmeQt of India.' t

(EXTRACT FRolif A LETTER.)
"''Calcutta, Feb. 12, 1844.
" ' As the:Government warehouse is still open to make
cash advances on East India 'produce, at the exchange
of 25., we presume Lord Ellenborough's recommendation
of their suspension has not met with support from the
Court of Directors.'

(EXTRACT.)
" ' Calcutta, Sept. 17, 1844.
" ' Government now make cash advances on produce
against bills of exchange, at Is. I Id. ten months date,
and they will not advance 1844-45 a sum exceeding
800,0001., and have notified their intention of gradually
reducing such cash advances on produce here, and in-
ducing more extensive purchases of treasurydrafts in
England.'

!;EXTRACT.)
" Calcutta, Jan. 23, 1345.
" This morning Government publishes a notification,
to the effect that advances will now be made on East
India produce, at the exchange of ls. 10d. ten months
date. Thus all our hopes of an advancing exchange are
suddenly blighted; a more untoward event at this crisis
could not have happened.'
" Fort William, Financial Department, May 31, 1845.
" NOTIFICATION.—Notice is hereby given, that the
sum to be provided in India during the official year
1845-46, for the service of the Honourable the East India
Company in London, by bills of exchange to be secured
by the hypothecation of goods, has been fixed at 800,0001.
sterling.
It is further notified for general information, that
of the sum of 800,0001. sterling required from India
during the past year 1814-45, only 272,5791. sterling
have been raised by bills upon England, and that deduct-
ing supplies received from other sources, a balance of
457,8711. sterling remains to be provided, which it may
be necessary to add to the demand for the current year.
" "rhe rate of exchange at which bills are to be drawn
will continue to be Is. 10d. per Company's rupee until
further notice; in all other respects the existing terms
and conditions of advances to be made by the Govern-
ments of Bengal, Madras, and Bombay, will remain in
force, and be the same as advertised in the Calcutta Ga-
zette, under dates the Ist of April, 1812, and 23d of
August, 1844. _

"By order of the Right Honourable the Gerrernor
General in Council,

" J. A. DORIN,
" Secretary to the Government-of India.'
"'Fort William, Financial Department,
Dec. 22, 1845.
" NOTIVICATION.—Notice is hereby given, that as the
amount of the year's supply required from India by the
Honourable the Court of Directors, in aid of their home
treasury, has been provided in full, no further advances
on the hypothecation of goods will be made by the
Governments of Bengal, Madras, or Bombay, during the
course cf the current official year.
"' By order of the Honourable the President of the
Council of India in Council,
" J. A. DORIN,
" Secretary to the Government of India.'

"Rut, notwithstanding this published declaration of il
the local Government, other interests prevailed, and the
system was still continued: In the early part of this
year, however, the news arrived that the Honourable
Company had closed their hypothecating warehouses in
India, and had announced that no further advances on
the hypothecation of goods would be made in any of the
Presidencies during the course of the then official year—
that is, from the 22d of December, 1845, to the Ist of
May, 1846. In the hope that wiser counsels were about
to prevail, and feeling that no permanent good to India
could arise from a temporary abandonment of the sys-
tem, your memorialists forthwith addressed a memo-
rial to the Court of Directors of the Honourable Com-
pany, dated Ist of May, expressing their satisfaction at
the closing of the hypothecating warehouses, and pray.
ing that the system might be finally abandoned, and that
the fact of such final abandonment might be promulgated
`by themselves throughout all the Presidencies. To this
memorial it was replied that the Court did not deem it
expedient to abandon the system of remittance; and,
within a few weeks, the Honourable Court published a
notice in London that advances on the hypothecation of
goods in India would be made there to the extent of
800,0001., up to the Ist of May, 1847. Your memo-
rialists cannot know the motives which have induced this
mischievous step; for experience has proved that if con-
fidence could be placed in the discretion and continuity
of purpose of the Court of Directors, abundance of means
would be provided for the legitimate wants of the Go-
vernment, by payments into their London treasury
' against bills on India. The ordinary requirements of
the Honourable Company in England are about
3„ 000 000/. a year; during the year 1845, when the
pawning system was in force, the receipts by them in
London, against bills of India, amounted to 3,ISS,i-- .;
and from the 24th of January to the 6th of Sqtember,
of the present year, the sums so paid in Lond,,n ran :unt
to 2,296,000 L, being at the rate of 3,300,0001 fuk the
year.
" Your memorialists are aware that a money pressure
has existed for some time in India, towards which many
causes may have combined; but they believe that no
cause contributes more to disturbance and pressure than
the system of which they complain. It cannot be ex-
pected that adequate capital can flow into India, either
for the ordinary occupations of commerce, or for appli-
cation to land culture, so long as every operation and
every interest can be arbitrarily interfered with by di.,
pawning propensities of the Government. India has long
suffered from these causes. Commercial capital has, in-
deed, been used by starts, but never without suspicion of
danger; nor will it be fully applied until released from
the apprehension of being unconsciously brought into a
rivalry with the Government, or being suddenly and