The Sun.
London, England, 1833-06-10 00:00:00

CHAIRMAN ♦ND DEPUTY• CHAIRMAN.

East India House, 27th May, 1833.
Gentlemen,-1 have the honour to acknowledge the receipt
of your letter of the 3d of this month, transmitting the resolu.
tion which was passed by the ballot on that day at a General
Court of Proprietors, in reference to the pending discussions on
the Charter of the East India Company.
Having laid that resolution before Lord Grey and the other
members of administration, it is now my duty to convey to you
the sentiments of his Majesty's Government on the subject.
His Majesty's Ministers learn with satisfaction the result of
the appeal to the ballot, and are happy to understand from it
that the Proprietors, though not regarding with unqualified ap-
probation the plan laid before them, are, on the whole, pre-
pared to assent to its adoption, if it should receive the sanction
of Parliament.
The Proprietors, however, are of opinion, that it is not rea-
sonable that the arrangement should be entered into on the
part of the Company, except on certain conditions; and to the
suggestions thus offered, it seems to be expected that at least an
approximation should be made.
It is the anxious wish of his Majesty's Ministers to accommodate
themselves, as far as is practicable, to the views and feelings of the
Company. In this disposition, they have carefully considered the
resolution of the 3d of this month ; and although not able im.
illicitly to adopt all the suggestions contained in it, yet to some
of them, and those the most important, they are ready to
accede. They do so with the more pleasure, as they are glad
to mark their sense of the temper and candour which have
been evinced by the Court of Directors in their correspondence
on the subject, and by the Court of Proprietors in the issue of
the ballot.
The Government do not think that a modification, to the
extent which they now propose, of the plan as it stood when
submitted to the Proprietors, will involve any sensible devia.
tion from its essential principles. If in a slight degree its com.
pleteness should appear to be impaired, or the efficacy of some
of its provisions to be diminished by the change, they are of
opinion that such partial and minute injury will be fully com-
pensated by the advantage of rendering the entire arrangement
more agreeable to the Company, and of securing their cordial
co-operation in carrying it into effect.
1 now proceed to notice in order the several points suggested
by the terms of the resolution.
With respect to the amount of the Guarantee Fund, the
Court of Directors, in their letter of the 18th of March, 1833,
recommended two millions. The resolution seems to contem-
plate a larger sum.
His Majesty's Ministers, however, on the whole, prefer the
former scale, and accordingly propose to fix it at two millions.
With regard to the application of the Guarantee Fund as a
security for the dividend, as well as the capital of the East India
Stock, his Majesty's Ministers are disposed to agree to the prin-
ciple of the proposition. They do not, indeed, enter into the
apprehensions which have led to that suggestion, believing the

occurrence of the contemplated emergency to be very improba-
ble; but, in order to meet the views of the Proprietors, they
propose that the dividend should by law have a preference to all
other territorial payments in this country.
In the event, therefore, of such an emergency as the resolu-
"

tion contemplates, the necessity of raising money in this coun-
try to supply a temporary deficiency of remittance, will consist
in the want of funds, not for the specific purpose of the divi-
dend, but for other payments, in aid of which the Guarantee
Fund would not properly be applicable.
But if the extreme case of such an emergency should occur,
advantage may be taken of the Guarantee Fund without a re-
course to an absolute sale of Stock.

In such case, let the Home Government be empowered to
take means, either by the issue of bonds, by giving bills in the
nature of Exchequer bills, or by pledge, or deposit of stock, in
short, by some mode of engaging the credit of the fund, to
borrow from time to time, as often and as much as may be
necessary to provide for the payment of each half-year's divi-
dend ; instructions being at the same time issued to the Indian
Government, to remit sufficient to discharge the sum which
may be so raised, with its accruing interest.
With respect to the various points included in the second
suggestion, his Majesty's Ministers agree,
First, " That the Company shall continue to administer the
government of India for a defined period."
My opinion as to the expediency of such a limitation I have
before stated to you. It is indeed still my belief, that the best
security for the duration of the proposed arrangements will be
found in the sanction which, as his Majesty's Ministers are per-
suaded, experience will give to the practical benefits of its
operation. But, having communicated my impressions on this
point, I have no indisposition to yield to those of the Company;
and his Majesty's Ministers are prepared to recommend that
the term of Government should be fixed for twenty years.
I do not know if the words " exercising the same powers as
the Company now possess under their Charter," are here intro..
duced with any specific reference. To the general propositions
which they express, his Majesty's Ministers have, through me,
repeatedly declared their adherence; and they are not aware
that it is, in the slightest degree, impaired by any modifica-
tion they contemplate in the existing system. Whatever
changes Parliament may in its wisdom see fit to adopt, will,
I doubt not, be made without detriment to the substantial
authority of the Company.
It is possible that the words in question have been inserted
in consequence of the hint thrown out in the Memorandum,
that the Board should have a veto on the recall of Governors
and Military Commanders in India. In order to obviate mis-
construction, I avail myself of this opportunity to inform you,
that it is not the intention of his Majesty's Ministers to insist
on the suggestion just mentioned. His Majesty's Ministers
agree,

Secondly, " That if at the expiration of the term, or at any
subsequent period, the Company are deprived of the political
government, the proprietors shall have the option (at three
years' notice) of being paid off at the rate of 1001. for every
5/. ss. of annuity." His Majesty's Ministers agree,
Thirdly, " That the Proprietors, whenever paid off, shall be
entitled, if they see fit, with their capital, or any portion of it,
to resume their undoubted right to trade, which it is now pro.
posed should be in abeyance."

I now arrive at the third of the suggestions contained in the
resolution.

To the first part of it, which, if I rightly apprehend its pur-
port, is simply a provision for the maintenance of the principle
of the existing law, there can be no objection, it being clearly
understood, that in future no expense of any kind, excepting
only the details of the Home Establishment expenditure, as
explained in my letter of 14th March, 1833, shall be incurred
without the previous sanction of the Board.

The second part of this suggestion is couched in the follow.

ing words : " That sufficient powers be reserved to the Com-
pany to check, by a system of publicity to both Houses of Par-
liament, or by some other means, any acts of the Board which
may appear to the Court to be unconstitutional, to militate
against the principles of good government, to interfere with
substantial justice to our allies, or to invalidate or impair the
security for the dividend."
I beg to assure you, that his Majesty's Ministers have taken
this suggestion into their consideration, with a sincere desire
to discover some safe and unexceptionable mode of satisfying
apprehensions, of which they confess themselves, at the same
time, unable to perceive the justice. I must fairly state,
that hitherto no plan has either occurred to themselves, or been
suggested by the Court, which does not seem liable, on public
ground, to grave objection. If any practicable expedient can
be devised for the purpose, they will be prepared to entertain
it; but I must say that they have too carefully considered the
subject to have much expectation of such a result.
To the proposition contained in the fourth suggestion," That
a sufficient power be retained over the commercial assets, to
enable the Court of Directors to propose to the Company, and
ultimately to the Board for their confirmation, a plan for making
suitable provision for outstanding commercial obligations, and
for such of the commercial officers and servants of the Company
as maybe affected by the proposed arrangements," his Majesty's
Ministers, although not aware of any peculiar occasion for its
adoption, see no reason to object; reserving always (which of
course is understood) the full power of the Board to act in the
matter as their duty and responsibility may, in their judg-
ment, require.

, -
I have now laid before you the modifications which it is in-
tended to admit into the proposed plan, and I have no doubt
that the proprietors will justly appreciate the spirit in which
they are conceded.
The main principles being thus adjusted, we are, I conceive,
arrived at the stage of our negotiations, at which the subject
may be submitted to more general discussion; and I think that
I shall best consult the wishes and interests of all the parties
concerned, if I take the earliest opportunity to bring the sub-
ject under the consideration of Parliament.

By the Legislature the various parts of the measure will be
fully canvassed and finally arranged; and the result will, I
rust, be no less satisfactory than advantageous to India and to
he empire at large.—l have the honour to be, Gentlemen,
Your most obedient Servant,
CHARLES GRANT.

(Signed)
The Chairman and Deputy Chairman
of the East India Company.