It appears that the plan established in 1785, and modified in 1793, for the remittance or transfer of Indian debt to England, has entirely ceased to operate. This plan being on a fixed rate of exchange, could not be expected to have effect any longer than whilst the rate so fixed should render it eligible to the public creditors to avail themselves of it. It may be added, that the institution of a Sinking Fund in 1798, and its subsequent operation, with the terms on which loans have been raised of late years, by which an option was left to the persons lending the money to be repaid in England at a more favourable rate of exchange, have now totally superseded the former mode of transfer. The amount redeemed by the Sinking Fund, in the year, was £557,615.

This must be admitted to be a very serious disappointment in the produce of an important branch of the resources; it is to be attributed principally to the small vent of piece goods in the year, arising from the necessity of deferring the sale which usually took place in February, to the month of March; likewise to the loss of the ship Prince of Wales with a valuable cargo, and the short supply of goods from Bengal. On teas, raw and organzine silk, also drugs, sugar, &c. the actual sales exceeded the estimated.

Receipt on sales, 1804-5, estimated at

£6,598,496

£14,630,971

> 12,681,623

actually amounted to

5,730,133

Increase, 1803-4

1,833,720

Deducting this sum from the in

The detail of the assets shews, that the only article in which the balance has lessened in the year, is the cash and bills, only £18,914. An increase is exhibited on all the others: on stores to the amount of £273,627, from the great importation from Europe, and from immense purchases in India in consequence of the war. The supplies from Europe, in the season 1802-3, have considerably increased the import goods. The remains of export goods have increased £560,169. The addition to the debs owing to the Company is £429,527. The latter sum is in the various departments of the several presidencies, and is, with a small exception as to the increased

In order to meet the extensive demands of the year, it was requisite to have recourse to extraordinary funds. A loan was obtained from government out of the tea duties, to the amount of £500,000; the sum of 100,000 was borrowed from the Bank; and bonds, amounting to £411,975, having been paid in upon the sales instead of cash (a circumstance which always occurs when the bonds bear a discount) an issue was made to the extent of £979,500. The effect of these several circumstances was; the funds of which the Company were able to avail themselves for the purposes of the year, were £7,622,337, exceeding the estimate in the amount already shewn, The gross actual expenditure of these funds on the immediate ac count of the Company was £7,606,381: of this amount, £4,173,409 was for a direct supply to the foreign concern, by payaient of bills of exchange and consignment in goods,

Deducting increase of assets from the increase of debt, the deterioration in the whole concern in 1803-4 abroad, and 1804-5 at home, will be

But it will be necessary, in this
place, to make some adjust-
ments: for this purpose, add the
amount received in India, and
inserted in quick stocks from
thence, 30th April, 1804; the
value of exports from England,
which was included in the car-
goes afloat outwards, in the
assets at home, viz. 583,299`
Goods in export ware-
houses in India, 30th
April, 1804, includ-

ed in quick stock ac-
counts and in assets

£339,194

626,918

at home

The year 1802-3, which had been expected to afford the most favorable result, with regard to revenue and charge, and to produce a considerable sum for the liquidation of the existing debt, did in fact produce surplus revenue to the amount of near a million sterling, including the sum paid to the commissioners of the Sinking Fund.

It is not requisite, in this place, to enter into any detail of the political circumstances which occurred at the end of the year 1802, nor of the events which led to the extensive scale of military operations which took place at a subsequent period: it is only necessary to advert to them, for the purpose of remarking, that their effect has been to defea: the plan devised for the liquidation of debt, and to absorb the surplus revenue to that degree, that for 1803-4 it was only estimated to amount to £121,835. The actual accounts exhibit a much more unfavourable view, in stating a surplus charge of £1,779,884, including £140,436, for interest paid to commissioners of Sinking Fund, which sum being propriated to the farther liquidation of debt eannot be considered as an available resource.

The variations between the estimated and actual charges for 1803-4, on the general result, is as follows:

The estimate calculated on a surplus revenne of £121,835

By the actual accounts a surplus charge has been shewn to the extent of Difference, in an unfavourable

view

1,779,884

1,901,719

The aggregate of the actual revenues was less than estimated by 109,000, and of the charges more than estimated by £1,702,312, The deficiency of revenue arose part in

Bengal, the collections from Oude being less than in the preceding year, at which period some extraordinary payments had been made; and in a great measure at Madias, from á considerable defalcation, in consequence of the unfavourable season of 1803-4. The collections in the Bombay districts were more considerable. Of the increased charge, £1,308,000 belongs to the military, from the continuance of the war expenses to an extent beyond what was expected when the estimate was framed. Of this sum above a million is in the increase at Madras. The sum of £394,000 is still to be accounted for: of this £192,000 is in the additional expense in the Oude provinces, and £91,000 chiefly in the settlement of Balambangan, not included in the estimate; the remainder in a variety of civil, judicial, and revenue expenses.

Actual surplus charge, 1803-4 £1,779,884 The estimate for 1804-5 1,734,184 Estimated more favourable than

actual,

45,700

I am

In this year a larger receipt of revenue is calculated by £285,000. The general charges are estimated less by nearly £20,000; but the interest calculated to be payable on additional debt reduces it to the amount just stated. The military expenditure is not estimated at so large a sum as that in the last year. sorry, however, to be under the necessity of observing, that doubts, infinitely too well founded, are datertained respecting the estimated charges. These doubts acquire additional strength, from the estimate for the year 1805-6. Excluding the commercial charges from this estimate, in order to carry on the comparison upon a principle similar to those already made, it will appear, that the result of 1805-6 shews a surplus charge of Adding amount of interest payable to commissioners of Sinking Fund

2,456,151

195,788

The revenues of 1805-6 are estimated at a larger amount by £721,024, by including revenues of conquered districts. The charges are greater by £1,638,779. A material part of this sum is in military expenses; but the precise amount is not distinctly stated in the estimate. The charges on revenues of conquered provinces must be supposed to make a considerable part in the increase, also the additional amount of interest payable on debt.

The home concern undoubtedly requires the attentive consideration of the house. The immense demands for the exigencies of the government in India must necessarily confine the commercial exertions in that part of the world; the investments must consequently be limited the sources of supply, therefore, for the home treasury are materially affected. In stating the home concern for 1804-5, after defraying the usual demands for dividends, territorial charges, &c. and taking credit for the profits of all descriptions, a deficit appears to the amount of £418,540; and it is presumed it cannot amount to less for the year corresponding with the Indian estimate for 1805-6, viz. 1805-7, or the current year.

On these principles the excess of charge abroad and at home, for the years last mentioned, must be computed at three millions sterling.

From these remarks it is sufficiently obvious that funds must have been derived from loans raised abroad or at home. The increase in the foreign debt to April, 1804, has been noticed: the additional account shews a further increase to April, 1805. The general account is made up for Bengal to January 31st; for Madras and Bombay to April 30th, 1805. It appears by a memorandum, that the debt bearing interest at Bengal, 30th April, 1905, Was inore by £358,183. This amount was properly left out of the total of the gross debt, as the alteration that had taken place in the floating debt, or the part not bearing interest, between January and April, could not be ascertained, but as properly, included in the statement of the debt bearing interest on 30th April, 1805.

Comparative amount of debt, 1804 and 1805. Amount of debts, 30 April, 1804 22,536,207 Ditto, 1805

Madras,

4,774,296 >14,279,533

Bombay,

742,017 J

Madras,

5,650,182

Bombay,

1,580,292 j

Net charge

360,311

Add-Supplies to Bencoolen,

Prince of Wales Island, &c.

260,800

25,040,434

2,510,227

The debt outstanding in India bearing interest, in April 1805, has been stated to amount to £21,604,967. Of this sum it appears, that £17,567,162 may eventually become payable in England, at the option of the holders of the securities. It is difficult to say, in what manner they may exercise their option; but it is probable, that at no very distant period demands may fall upon the home treasury to a considerable amount and though, under the terms of the loans, the Court of Directors are enabled to protract the payment, in some instances, for one or two years, yet extraordinary measures must probably be resorted to, for the purpose of meeting the obligations as they respectively become due. Although the amount of the optional loans is stated to exceed seventeen millions sterl., it does not by any means follow, that it will all of course fall upon the home treasury. The decennial loans becoming due in 1809 and 1810, amounting to £3,820,762, may perhaps be made payable in England. The part of the eight per cent. loans subscribed since 1800, may also be transferred home; but the amount is not exactly stated. The remainder of the sum of £13,746,400, which falls under the terms of the subscription or transfer to Europe, authorised by order of the Court of Directors in 1793, by bills at 548 days date, at the exchange of 1s. 11d. the current rupee, 7s. 8d. the star pagoda, and 2s. 24d. the Bombay rupee, cannot be shewn with perfect correctness. The original institution of this plan took place in 1785, at a lower rate of exchange, which was afterwards increased. The committee are aware, it has been totally superseded by the present Sinking Fund. When the rate of exchange is compared with the other more advantageous modes of remitting the fortunes of individuals to Europe which are now open, it does not appear very probable that many will avail themselves of this mode of transfer.

Having stated the reverses which the finan cial system of the Company has experienced from enercased expenditure and additional debt, some information might be expected, as to the remedies proposed, and plans recommended, by which the overbearing expenses might be met, investments might be provid. ed, and the great difficulties of the financial

situation of the Company might, in some degree, be obviated. That this is a subject of serious importance, not only to the Court of Directors and to those to whom the administration of the government of India is delegated, but to parliament and the country, does not admit of contradiction. It is well known, that considerable retrenchments in expenditure, and reductions in various establishments in India, are now in progress. The more proper time, however, for bringing this subject before the House will arrive, when complete documents shall be received from India, from which more accurate calculations can bę drawn, of the extent to which it may be prac ticable to carry into effect the various measures of retrenchment and reform. The farther consideration of this point is, therefore, proposed to be deferred till the next sessions, when the accounts due this year, of which a complete series is not yet arrived, shall be upon the table of the House, and when an early opportunity may be taken of bringing before parliament the most ample information upon these interesting and important topics.

If, in alluding to the political events which have lately occurred in India, I do not endea vour to occupy the time of the committee, I trust that I shall not be supposed to be insensible of their magnitude and importance: they are, however, so completely within the knowledge of every gentleman, that it is unnecessary to dwell upon them for any considerable time. It appears from the dispatches of Sir G. H. Barlow, that the treaty which was concluded with Scindia, in November, 1805, having been ratified by him, has been since ratified by Scindia. Its principal points consist in establishing the river Chumbul as the northern boundary of the territory of Scindia, in a line drawn from Kotah to Gohud; and in a renunciation, on our part, of all interference with the petty states on the western bank of the Jumna, that may have been formerly tributary to Scindia. The last event of considerable importance is the treaty concluded with Holkar. It appears that Lord Lake having reversed the line of march of the old conquerors of Hindostan, pursued the fugitive to the second river of Panjab,' with a degree of vigor and energy which has marked all his military exertions, and placed him in a situation from which it was difficult for him to retreat, and impossible to advance, without almost the certainty of defeat. The consequence has been, the conclusion of a treaty of peace, by which Holkar is restored to a considerable part of his ancient territory. He has thus regained, by our generosity, what he had forfeited by persevering and determined hostility. I will not, at present, enter into any discussion of the treaties, as they are not regularly before the House; but will merely say, that though there may be