The Sun.
London, England, 1833-03-26 00:00:00

EAST INDIA HOUSE.

(Confirmed from our Paper of Yesterday.)
The security offered to the Company for the payment of
1034 per Cent. appeared to him to be amply sufficient. The
circumstances of India would, he felt convinced, meet every
claim of the Treasury. Here was . a revenue of 22,000,000 L,
with strong promise of increase—a territory almost unlimited
in extent—and a laborious, frugal, and industrious people.
Such resources wisely managed were sufficient to meet every
demand of the Treasury. The plan proposed by his Majesty's
Government, that of granting an annuity of 630,0001., would
secure to the proprietors of East India stock their dividends;
it would keep up, and render more close, the connexion be.
tween them and the Directors, and it gave them a direct money
interest in the good government of India, while the separation
of the commercial and political department would withdraw
the attention of the Directors from various matters that at
present too much occupied their time. What, he asked, was
the Company called on to concede ? The China trade ?
That monopoly would expire with the Charter of 1813. Here,
therefore, there was nothing to give up. Was it political
authority ? That was a pure gift from the British Par-
liament, for the benefit of England and the good of
India, and might be altered precisely as Parliament
pleased. There was here, then, no surrender ; but the Se.
cret Committee said, " With every respect for his Ma-
jesty's Ministers, we decline to recommend to the
Court of Proprietors the proposition contained in the
4th and sth paragraphs of hints transmitted to them on the
17th of December, 1632, because there is no probability what-

ever of continuing the government of India profitably, so as
to pay a dividend, after the loss of the China trade. A divi.
dend of 10i per cent ought to be clearly secured to the Pro-
prietors ; that is the least to which the Company is entitled,
as they are possessed of property sufficient to raise that sum
if invested in Consols. That property consists in commercial
assets, in pecuniary claims to a large amount, and in terri-
torial possessions, their title to which had not been im-
peached." Now, the property claimed as commercial assets
was well known to be of a doubtful character, and to be subject

to heavy liabilities. It would become a subject of adjudica-
tion, ;either by a Parliamentary commission, or by aibitra-
tion. This very proceeding would strike at the credit
of the Company in the first instance. Proceedings of this de-
scription occupied a long time, and whilst they were pending
the charter would expire, and the exclusive China trade be at
an end. - How, then, were the dividends to be paid ? But sup-
pose the decision, and it was a very doubtful point, were finally
given in favour of the Company, what would compensate them
for the intermediate loss ? On the Ist of May, 1829, the com-
mercial property of the Company was estimated at '21,102,18.2/.
It would be improper for him to assert that the different items
of which this gross sum was composed would not by an im-
partial arbitrator be admitted to be correct. He might give
what they claimed, but not without making certain deductions
which could not fairly be resisted. Of the rights and privileges

which the Company claimed in India many had been in abeyance
for 70 years, and doubts might be raised as to the validity of
the Company's title with respect to them. Looking to those
points, the Company would, perhaps, see the necessity- of
agreeing to the compromise which Government proposed.
Supposing all the items in the account of property were ad.
mitted, still grave questions of law would arise which affected
the Company's claim. Ministers must deal with this case on
the most enlarged principles of justice and policy and it was

precisely for that reason that they hoped to obtain from Par-
liament full approbation of the plan which they intended to
lay before it. By the proposed compromise both the territorial
and commercial interests of the Company would be benefited.
The resources of India were capable, he was convinced of meeting
every demand that could be made on them. On the whole he in-
dulged a hope that the proposition which had been made would be
found, when properly considered, favourable to the Company's
affairs, and that the compromise now offered was such as
would ultimately meet with the approving feelings of all par-
ties. He trusted that the Court of Directors would make a
satisfactory arrangement with their constituents. If that, un-
fortunately, should n,,t be the case, still Ministers would not
relinquish the hope of effecting the compromise, until the Pro-
prietors themselves positively decided against it. It was for
them either to decline or to accept of the proposal. But he
was bound to say, frankly and fairly, that Ministers, con-
vinced of the justice of the terms now offered, were prepared,
in the event of a refusal, to propose a plan to Parliament for
the government of India without the intervention or instru-
mentality of the Company.—(Hear, hear.) If the consent of
the Company were not signified by the 23d of March, he should
feel compelled to consider the Company as declining the pro-
posal.—(Hear, hear.)
The last two sentences created a strong sensation in the
Court.

The next letter was from the chairman and deputy-chairman,
to the Right lion. C. Grant, dated the 13th of February, in
which, after acknowledging the receipt of the preceding letter,
and stating that it should receive immediate consideration
from the Court, in the interim they requested information
on three points—lst, whether his Majesty's Ministers made
it a condition of assigning to the Company the territorial
government of India for a time fixed that the Company
should relinquish its trade with India in perpetuity ; 2dly,
whether it was to be a part of the proposed arrangement
that the Company should assign to the Government those sums
which it had subscribed by Act of Parliament ; and, 3dly,
what were the terms (as to length of time) on which the an.
nuity should he redeernahl,. A letter from Mr. Grant, dated
the IRth of February, in reply to the above answered the first
point by stating that the right of the Company to trade formed
no part of the plan. It was not positively taken away, but
should he considered in abeyance ; but Mr. Grant added, that
as the capital :dock of the Company would be assigned, and
as the trade to China was to be thrown open, and the pro-
fits thus be greatly reduced, the Company would probably
not think the continuance of the trade worth their attention.
To the second point the letter replied, that the whole of the
commercial capital of the Company of all kinds should be
given up, as all were involved in responsibility for its engage-
ment,. To the third, it answered, that Government would be
disposed to give a very liberal latitude as to the redemption of
the annuity, and was prepared to receive any suggestions of
the Directors on that head.

Minutes of the proceedings of secret committees prolonged
by adjournment from the 18th to the 26,h of February, at which
the draught of a letter from the chairman and deputy.chairman
to the Right Hon. C. Grant was discussed and agreed to, were
then read. The letter so agreed to was then read. It commenced
by acknowledg rig the receipt of Mr. Grant's letter (of the 12th of
February), and also " th paper of hints," and in reply requested
that Right Hon. Gentleman to submit their answer to Earl
Grey and his colleagues. They stated that the Company
owed great obligations to the people of India, that their
prosperity and happiness were primary objects with the Com-
pany, and that, looking to those objects, they would not shrink
from the responsibility of continuing the administration of the
political government of that country, nor from resigning it if
A good government of the country could be otherwise supplied ;
but the consideration of that question was not now necessary, as
the continuance of the Company in the political administration
of the country formed part of the proposed plan. The ques.
Lion to be considered was, whether the conditions on which
the plan was proposed were good and such as the Company
ought to accept. The plan was, in the first place, to annihilate
the Company as a commercial body, and to confine it to the
political government of the country. The Court greatly
doubted the policy of that part of the plan ; as, deprived of
the advantages which it derived from its trade and reduced to
a state of dependence, the power of the Company to govern
India would be greatly weakened, and, of course, its authority
much diminished; that the patronage which such a dependent
body could exercise would be dangerous, and the real power
would be thus transferred to the hands of Government. They
deprecated the increased power to be given to the Board
of cotrol, in the authority to be given to it over all
expenditure, and the whole of the establishment at home.
The ur'trt did not believe that it was the intention to make
the Court a :.:overnment Board, for if such were its intention
it would openly avow it; but certainly the plan which it pro-
posed had that tendency; they therefore hoped that Govern-
ment would reconsider this part of their plan. The Court
acted here as the representatives of the people of India; they
admitted that it was in that character they had any claim to
ask the continuance of the trade with China, as a means which
enabled them to carry on the government of India. The letter
then briefly pointed out the advantages of the commerce of the
Company, which had, within the last charter, made it unneces-
sary to borrow 17,000,0001. for territorial purposes. The Court
could not concur in the view taken by the Right lion. Gentle.
man of the prospective financial prosperity of India, and they
feared that if deprived of the advantages of the China trade,
the territorial revenue of the country would not be sufficient to
enable that Government to meet its engagements. It had been
stated that much of the benefit derived by the Company from
its commerce might be considered in the light of a tax
upon the people of this country. The Court conld not
view it in this light, and they referred to the report of a
Committee of the House of Commons in 1830, which
showed that the Company derived no more than a fair
profit from its capital. If the merchants who should engage
in the trade with India and China should derive a simil,r
profit, could that be fairly said to be a tax on the community ?
But let it be considered that in the proposed arrangement,
besides the profit of the traders to India and China, the public
would have to provide the expense of collecting the duty on
tea, which the Company had hitherto saved it.—(Hear, hear.)
'no Court added, that if Government were determined to
separate the territorial government from the trade to India,
they (t;;e Directors) would do all in their power to lessen its
incianventeriej; but they must hope that more and complete
powers would ke elven to them for that purpose. The Court
doped that the public might derive all the benefits which
were anticipated from the opening of the China trade, but
they greatly feared that the hopes thus held out would not be
realized. Experience had shown, that tliat trade was at-
tended with many difficulties, which, no doubt, would be
considerably incr ased when it came into the hands of private
traders. One result which was expected from throwing open
the trade to China was art increased vent for British com-
modities in that country, but the
Americans, who were, next
to England, the most enterprising commercial nation, had
already tried toe experiment by taking out British goods
thither, and they had not found it to answer. Captains of
Bricsh Indiamen had also mad: the attempt, but with as little
success. Considering the peculiar habits and laws of China,
any valuable extension of our trade, by the export of British
manufactures to China, was a thing which could not be cal.culated upon with any prospect of success. Difficulties, ire.
quently arose in the intercourse of the Company with
China
owing to the regulations of the Chinese, over which the Corn.
pany had no control, but which it sometimes required all the
influence and the skill and addresi of their agents to surmount.