New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-02-09
THE APPROACHING INDIAN LOAN.

Correspondence Of The N. Y. Tribune.
LONDON, Jan. %, 1853.
The Luoyancy in the London money market, re-
sultiDg from the withdrawal of MI enormous mss Of
capital from the ordinary productive investments,
and its consequent transfer to the security mar
kets, has, in the last fortnight been somewhat les
sened by the prospects of an impending Indian loan
10 the amount of eight or ten million pounds ster-
ing. This loan, 10 be raised i'll England, aud to be
authorized by Parliament Immediately on its as
sembGng in February, is required to meet the
chains upon the East India Company by its home
creditors as well as the extra expenditure for war
materials, stores, transport Of troops, &c, neces
ntated by the Indian revolt. In August, 1857, the
British Government had, before the propagation
Of Parliament, sOlemnly declared in the House Of
ConmOns that DC such loan was intended, the fnan-
cal resources of the Company being more than suf-
hcient to meet the crisis. The agreeable dclusion
thus pslmed on John Bull was, however, soon dis
PEELED when il oozed out that by proceeding of
very questionable character, the East India Com
pany had laid hold on sum OF about f3 500, 900
sterling, ntrusted TO them by different companies
Sor the construction of Indian railways; and had,
moreover, secretly borrowed E1,000000 sterling
from the Bank of England and another million
from the London JOINT Stock banks. The public
being thus prepared for the worst, the Government
did no longer hesitate to drop the mask, and by
semi-oficial articles in The Times Globe and other
governmental organs, avow the necessity of the
loan.
1t may be asked why special act on the part of
the legislative power is required for launching such
. . loan, and then, why such an event does create
the least apprehension, since on The contrary, every
vent for British cspital seeking now in vain for
profitable investment, should under present circup-
stances, be considered windfall, and a most saiu-
sary check upon the rapid depreciation of capital
1t rs generally known that the commercial exist
ehee oil the East India Company was terminated in
1854, when it's principal remaining source of com.
mcrciai Prohts, the monopoly of the China trade,
was cW on. consequently, the holders Of East H.
oia stock having derived their dividends, nominally
NJ least, from the trsde-pro6ts of the Company
new nhShcial arrangement with regard to them
hhd become necessary. The PAYMENT of the
dividends, till then chargeable upon the com.
mercal revenue OF the Company, was trans.
ferred 10 lts political revenue. The proprietors NJ
East India stocks were 10 be- paid out OF the reve
nues enjoyed BY the East India Company in he
governmental capacity, and. by act Of Parliament
the Indian stock, amounting to ct, 900 600 sterno
bearing ten per cent interest Was converted into n
capital not to be iquidated except at the rate of
$500 for every flO0 of stock In other words,
the original East India stock Of sc 000 600 sterling
was converted into capital Of fl2,000, 900 ster-
Ing, bearing five per cent interest," and chargcable
upon the revenue derived from the taxes of the
Indian people. The debt Of the East India Com.
paDy Was thus, by Parliamentary sleight of hand,
changed into debt of the Indian people. There
exists, besides debt exceeding $50 600 900 ster-
ling, contracted by the East India Company in
india, and exclusively chargeable upon the State
revenues of that country; such loans contracted BY
Ae Company in India itself having always been con-
sidered TO lay beyond the district of Parliamentary
Al aLa..e 1ulf
contracted by the Colonial Governments in Canals
or Australia for instance.
On the other hand, the East India Company was
prohibited from contracting interest. bearing debts
IN Great Britain. herself without the especial sane.
ton Of Parliament. Some years ago, when the
Company set about establishing railways and cleo
t1e teIegrapks u ladis, applied for Tic authorize