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+The Project Gutenberg EBook of A Short View of the Laws Now Subsisting
+with Respect to the Powers of the East India Company, by Anonymous
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: A Short View of the Laws Now Subsisting with Respect to the Powers of the East India Company
+       To Borrow Money under their Seal, and to Incur Debts in
+       the Course of their Trade, by the Purchase of Goods on
+       Credit, and by Freighting Ships or other Mercantile
+       Transactions
+
+Author: Anonymous
+
+Release Date: August 14, 2011 [EBook #37082]
+
+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THIS PROJECT GUTENBERG EBOOK EAST INDIA COMPANY ***
+
+
+
+
+Produced by Richard J. Shiffer and the Distributed
+Proofreading volunteers at http://www.pgdp.net for Project
+Gutenberg. (This file was produced from images generously
+made available by The Internet Archive.)
+
+
+
+
+
+[Transcriber's Note: Every effort has been made to replicate this text
+as faithfully as possible, including obsolete and variant spellings and
+other inconsistencies. Text that has been changed to correct an obvious
+error is noted at the end of this ebook.]
+
+
+
+
+  A
+
+  SHORT VIEW
+
+  OF THE
+
+  LAWS
+
+  Now subsisting with Respect to the Powers of the
+
+  EAST INDIA COMPANY
+
+  To borrow Money under their Seal, and to incur Debts in the
+  Course of their Trade, by the Purchase of Goods on Credit,
+  and by freighting Ships or other Mercantile Transactions.
+
+
+  LONDON:
+
+  Printed for W. NICOLL, in St. Paul's Church-Yard.
+  MDCCLXVII.
+
+
+
+
+A short View, _&c._
+
+
+As many erroneous opinions have been industriously propagated with
+respect to the powers of the East India Company to contract debts, I
+think it a duty to the Company and to the public, to give a fair state
+of the laws now subsisting with respect to these matters, by which the
+prejudiced may be set to rights, the ignorant informed, and the
+malevolent deceivers of the public exposed and detected.
+
+By act 9 and 10 William III. c. 44. Sec. 75. the Company is allowed to
+borrow on the credit of the two millions lent to Government, but is
+restrained from borrowing any greater sums than shall be employed in
+their trade, without, however, any restriction as to the amount of such
+borrowing, only such borrowing must be under common seal.
+
+By Sec. 86 of the same statute, the Company is directed to take care that
+the sum total of its debts do not exceed the amount of its funds and
+effects, and if they shall reduce their funds and effects by dividends,
+so as not to leave sufficient to answer their debts, the persons who
+receive the dividends are each made answerable to pay the debts, to the
+amount of the dividend respectively received.
+
+By act 9 Ann, c. 17. Sec. 2. The Company having lent to the public
+1,200,000_l._ more, they are allowed to borrow under their common seal,
+to the amount of 1,500,000_l._ above what they might lawfully borrow by
+the preceding act.
+
+By act 7 Geo. I. c. 5. Sec. 32, the Company is allowed to borrow under
+their common seal for carrying on their trade or lending on bottomry, to
+the amount of the sum due from the publick, _or five millions_.
+
+By act 17 Geo. II. c. 17. Sec. 8. the company having advanced _one million_
+more to government, the power of borrowing under their common seal, is
+extended to one million above what they might borrow before that act.
+
+In consequence of these acts, the Company has always considered itself
+entitled to borrow to the amount of six millions under its common seal.
+
+By act 23 Geo. II. c. 22. Sec. 5 and 6. the Company was authorized to
+convert part of its bond debts into annuities, to the amount of
+4,200,000_l._ but it is declared that its power of borrowing granted by
+former acts should continue in force, but that the amount of the annuity
+should be computed as part of what they were empowered to borrow.
+
+In consequence of this last act, the Company did convert 2,992,440_l._
+or near _three millions_ of their bonds into annuities, and they owe
+besides, by bonds under their common seal, 2,898,124_l._ so that the
+total amount of their bonds and annuities is 5,890,564_l._ which is
+109,436_l._ under the six millions which they are entitled to borrow by
+bonds and annuities.
+
+In the course of the Company's trade, they have been in the practice,
+like all other merchants, of purchasing goods upon credit, and of
+contracting for ships upon freight, and only advancing a part of that
+freight 'till after the voyage was compleated. It was impossible for
+them to carry on their trade in a proper manner in any other way, for if
+they had paid ready money for all their goods, and advanced the whole
+freights, they would have been exposed to imposition in the quality of
+the goods, and to misconduct in the freighters of the ships, without
+retaining in their hands a proper sum to repay such damage as the
+Company might suffer by the hands of the freighters or merchants.
+
+It never therefore was supposed that the Company transgressed the
+statutes which restrained their power of borrowing under their seal to
+six millions, by carrying on their trade in the way of purchasing goods
+on credit; and indeed if this had been meant, the law would and ought to
+have allowed them a more extensive power of borrowing; for it is certain
+the Company's fortifications in India have cost more than _three
+millions_, and the nature of their trade in India requires that they
+should always have to the value of at least _three millions_, in goods
+and cash, or what is called quick stock, employed in India for making
+their investments, (including the cargoes afloat going out and coming
+home) so that here is the whole sum which they are allowed to borrow,
+disposed of in India, besides the value of the goods which they must
+always have in their warehouses at home, to the amount of more than _two
+millions_.
+
+If it had been therefore the intention of the Legislature to restrain
+the Company from purchasing goods on credit, or from incurring freights
+or other such debts, and that their whole debts of every kind should not
+exceed six millions, it is very plain to those who are versant in
+mercantile transactions, and who know the state of this company's trade,
+that they could not have carried on their affairs in such a manner as
+they have done, nor have rendered the trade of India so great an object
+as it is, to this commercial kingdom.
+
+It has sometimes happened to this Company, as it frequently happens to
+other merchants, that its returns have not arrived at the time expected,
+and that their investments during some particular years have fallen
+short; in such cases they have not been able to pay, with the strictest
+punctuality, the price of the goods bought on credit, nor the freights
+due for shipping or other articles of the same kind; and in such cases
+the furnishers of these goods or ships have indulged the Company with a
+delay of payment; and in order to indemnify themselves for that delay,
+these creditors have either taken a higher price for their next goods,
+or sometimes have been allowed interest from the Company, but in no
+instance have these debts, so contracted, been converted into debts
+under the Company's seal, nor were ever considered as money borrowed.
+
+The purpose of restraining the Company as to their power of borrowing
+under their common seal, was merely to prevent their interfering in the
+market with government loans, exactly upon the same principle that
+private lotteries, &c. are prohibited by law; but in all other respects
+the Company is unlimited, as every private merchant is, as to the
+exercise it may chuse to make of its credit in the purchase of goods, or
+incurring debts in any other mode except coming into the market to
+borrow under their seal, by which alone the Company can interfere with
+the loans required by Government for the purposes of the state.
+
+So long as the Company carries on its trade with advantage to itself and
+the nation, and preserves entire, an ample sufficiency of funds to pay
+all its debts, and repay its capital, there can be no reason in common
+sense for preventing its employing its credit in the purchase of as
+great a quantity as possible of our own commodities to send to India,
+and employing as great a number of shipping as the trade will possibly
+allow.
+
+The Company's trade is so much extended of late years beyond its former
+limits, that its power of borrowing on annuities and bonds ought also to
+have been increased; for if six millions was thought reasonable forty or
+fifty years ago, the publick ought now by the same parity of reason to
+allow at least eight or ten millions to be borrowed under seal,
+especially as the wealth of the nation, and of consequence the market
+for borrowing has so greatly increased during that period. The expensive
+wars which the Company carried on for many years, obliged them, for want
+of cash, or a power of borrowing, to diminish both their exports and
+imports to the great prejudice of the nation; so that the kingdom in
+general has no reason to applaud the wisdom of that law which retrained
+the Company to six millions. Besides, we have of late years extended our
+China trade beyond any thing that was ever attempted in former times,
+insomuch that above _three millions_ sterling is now invested in teas
+alone. It is impossible that we could either have carried on these wars
+which have ended with so much success, or have extended our commerce and
+the exportation of home commodities to the amazing degree we have done,
+if the statutes restricting our borrowing under seal had been understood
+to prohibit the using our credit in the purchase of goods.
+
+The debts due by the Company at present, exclusive of its bonds and
+annuities, are particularly set forth in an account delivered in by
+order of the House of Commons, the particulars of which debts are
+these:
+
+  For customs on goods, sold and unsold,
+  now in England,                                      L 1,200,605
+
+The customs are not payable till the goods are sold, and even as to
+those sold, a long delay of payment is always allowed. The arrear of
+customs on goods sold, is at present about 300,000_l._ or 400,000_l._
+
+                                                              L
+  To what owing for silver and to sundrys,
+  with interest thereon,                                   581,756
+
+The greatest part of this debt is due to the bank of England, as the
+price of silver bought from the bank for exportation, several years ago.
+The Company never granted any security under their seal for this debt,
+more than for the price of other goods bought on credit; and this debt
+stands at this day upon the footing of a simple entry in the Company's
+books, and in the books of the Bank, as a sum due for the price of
+silver, and the Bank have willingly accepted interest at 4 _per cent._
+and have indulged the Company with a delay of payment.
+
+                                                              L
+  To the amount of bills of exchange drawn from India,
+  unpaid, with interest,                                   338,000
+
+  To freight and demurage,                                 305,000
+
+  To tradesmens bills in the department of the committee
+  of shipping,                                             155,909
+
+  To ditto, in the committee of buying,                     64,079
+
+  To dividends on stock not yet demanded,                   23,883
+
+  To dividend on stock, due at Midsummer, at the rate
+  of 10 _per cent._                                        859,704
+
+  To interest on annuities to Midsummer, including
+  interest not yet demanded,                                75,406
+
+  To interest on bonds to Midsummer, including interest
+  not yet demanded,                                         60,553
+
+  To commission due to supercargoes,                        30,000
+
+  To the proprietors of goods sold in private trade,        75,900
+
+  To warrants passed the court unpaid,                       7,500
+
+  To alms-house at Poplar,                                  13,503
+
+  To salaries of clerks, _&c._ and for tradesmens bills
+  for work done to the house, _&c._                          5,000
+
+To ballance to government for naval and garrison stores received in
+India, 9,223_l._ but as government owes to our company 33,750_l._ as
+the price of salt-petre, this ought not to be stated.
+
+These are the whole debts dated by the Directors themselves as due by
+this Company, besides their bonds and annuities, a great part of them
+are not payable in the common course of business for a considerable
+time, some of them not till the year 1769, and the Company are possessed
+of effects now in England, independent of the cargoes of this year daily
+expected, sufficient to pay them all; but at any rate none of these
+debts fall within the prohibition of the statutes by which the Company
+is restrained from borrowing under their common seal to a greater amount
+than six millions, for none of these debts have been borrowed under the
+Common seal, nor indeed have been borrowed at all in the sense meant by
+the act of parliament, but are merely book debts contracted as the price
+of goods, _&c._ in the common course of merchandise.
+
+It further appears by a calculation made by one of the Directors
+themselves, a member of the committee of treasury, that by the sale of
+goods in the common course of the Company's sales, the Company will be
+in cash, to pay off all these debts and also to pay the dividend of
+6-1/4 _per cent._ against the month of February 1768. A copy of this
+account is annexed.
+
+But whatever may be in that matter, it is sufficient for the present
+argument, to shew that none of the debts due by the Company, over and
+above their bonds, fall within the prohibition of the statutes which
+have restrained the Company's power of borrowing under seal; none of the
+Company's creditors have complained of the late increase of dividend,
+the Directors alone and their faction have objected to it, and have
+pretended as their excuse that they deemed it illegal to make any
+increase of dividend while the Company owed any debts beyond the six
+millions in bonds and annuities. They have not urged the argument as a
+matter of inexpediency merely, for that argument would have appeared too
+groundless when the payment of all these creditors must in every way
+take place almost immediately, but they have put the argument on an
+objection of illegality, founded upon the statutes which restrain the
+Company's power of borrowing; and indeed if the objection of the
+Directors had arose from inexpediency alone, they could not have been
+justified in making so violent and obstinate an opposition to the
+sentiments of the Proprietors, nor could they be justified as honest men
+in endeavouring to shake the very foundation of the Company's credit,
+and to injure its stock, in order merely to save the Company from paying
+a sum of 40,000_l._ more or less, in February next. But indeed upon the
+footing of the Directors argument that the Company can never divide if
+they have other debts besides their bonds and annuities, no dividend can
+ever take place, for the Company cannot carry on their trade in a proper
+manner without contracting such debts as the price of goods purchased on
+credit, and the freights of ships employed by them.
+
+It is proper therefore, after having premised this general view of the
+statutes which restrain the Company's power of borrowing, to consider
+these statutes more particularly one by one, to see if we can discover
+any pretence for that doubt which the Directors have affected to
+entertain concerning the Company's power of borrowing.
+
+It is extremely remarkable, that when the Directors were asked in the
+general court whether they had taken any opinions of council to justify
+their pretended doubt as to the Company's power of contracting such
+debts, they declared that they had not, and the chairman said, he did
+not think they would have been justified if they had taken such
+opinions. Nothing can shew more clearly the unjustifiable motives of the
+Directors opposition than this answer: they opposed the dividend upon
+pretence of a doubt of the Company's power of incurring debts beyond six
+millions, and yet they did not take the opinion of council concerning
+the Company's real powers. They knew that no opinion could be procured
+to give a foundation for the doubt which they pretended to entertain,
+and therefore they took no opinions, but made use of their pretended
+doubt as a mask to cover the real motives which induced them to engage
+in their conspiracy against the interest of the proprietors whose
+servants they are.
+
+The act 9 and 10 of king William, c. 44. contains no clauses which can
+any way restrain the Company's power of borrowing or extending its
+trade, except what is to be found in section 61, 62, 64, 75 and 86.--By
+sections 61, 62 and 64, there is no other restriction except that the
+Company shall not, _in any one year_, successively, send or cause to be
+sent to the East Indies from England or any other country, goods,
+bullion, or commodities to any greater value than their principal stock
+subscribed. And the fact is, that the Company never has sent _in any one
+year_, goods, bullion or commodities to the value of one-third of their
+principal stock, and therefore no argument can be founded on the
+limitations contained in these three clauses.
+
+The section 75 of this statute, begins with a recital of the act 8 and 9
+of king William in favor of the Bank of England, _viz._ that no other
+Bank than the Bank of England shall be erected, permitted or allowed by
+act of parliament, and then the act proceeds, that for the better
+securing the priviledges of the Bank of England, _It shall not be
+lawful_ (in the record it is _shall and may be lawfull_) for any Company
+to be established by virtue of this act, to borrow or give security for
+any sum or sums of money on credit, on any publick funds hereby granted,
+and that it shall not be lawful for such Company to be established by
+virtue of this act, to borrow or give security for any greater sum or
+sums of money, than such as shall be really and _bona fide_, expended
+and laid out in and for the buying of goods, bullion or commodities, to
+be exported for the proper account of the said Company to be
+established, or shall be otherwise employed in their trade, all which
+sum or sums of money so to be borrowed for the purpose aforesaid, shall
+be borrowed only on their common seal, and shall not be made payable or
+_bona fide_, agreed to be paid at any time less than six months from the
+time of borrowing thereof: and that it shall not be lawful for the
+Company to be established by this act, to discount any bills of
+exchange, or other bills or notes whatsoever, or to keep any books or
+cash for any persons whatsoever, other than only the proper monies and
+cash of the said Company.
+
+The plain import of this clause is not to restrain the Company with
+respect to the extent of their trade, but merely to prevent its
+interfering with the business carried on by the Bank of England. The
+purchasing goods upon credit can never be considered as an interference
+of that kind.
+
+The 86th section of this act does no way restrain the Company with
+respect to the amount of its debts, excepting only that the Company
+shall take care that the sum total of all the debts which they shall owe
+at any one time shall not exceed the value _of the principal or capital
+stock or stocks which at any such time shall be and remain to the said
+society undivided_; and that in case the Company, by any dividend
+whatsoever to be made amongst themselves, shall reduce or lessen their
+joint stock, principal or capital, without paying off or proportionably
+reducing the sum total of their debts, so that the value of the joint
+stock, principal or capital undivided, shall not be sufficient to
+answer their just debts then remaining unpaid. In every such case the
+particular members receiving such dividend shall be severally liable to
+the amount of the dividends received, to pay and satisfy the debts which
+shall remain due and unpaid by the Company.
+
+The plain import of this clause of the act, is to secure the creditors
+of the Company from any unjustice by the Company's dividing their
+effects so as not to leave a sufficiency for payment of its whole debts,
+and can never admit of the construction which has been attempted to be
+put upon it, as if the Company's debts could never exceed the sum of
+money subscribed to Government.----By the words principal or capital
+flock or flocks undivided, is plainly here to be understood the total
+funds and effects of the Company, which are in fact the capital upon
+which the Company does trade; and there would be the greatest absurdity
+in supposing, that in a case where the Company had in its warehouses
+goods and effects to the value of three times its debts, the debtors of
+the Company could have an action against the receivers of dividends,
+under pretence that the sum total of the Company's debts exceeded the
+sum total of the capital stock subscribed to Government, at a time when
+the Company's total goods and effects might, as at present, exceed its
+total debts, in such a proportion as not only to pay its whole debts,
+but also to repay its capital advanced, and leave five or six millions
+over of clear ballance to be divided amongst the proprietors.
+
+But if the words, principal capital stock or flocks undivided, could in
+this clause admit of the construction which is put upon them, yet
+certainly the words _sum total of debts_ can in that case be only
+understood to mean the ballance of debts after deducing the fair value
+of the Company's effects, other than its capital subscribed; and if the
+_debts_ are understood in this sense, viz. as the ballance of debts,
+there would be no inconsistency, that when the sum total of the ballance
+of debts exceeds the capital stock subscribed, that the receivers of
+dividends should be respectively answerable to pay the debts in
+proportion to what they receive, but unless the words, principal or
+capital stock or stocks undivided, or the words, sum total of debts are
+to be understood in the sense here affixed to them, the statute can not
+be explained so as to be agreeable to common sense or reason.
+
+By the act 6th Q. Ann. c. 17. Sec. 2. it is provided, that for the better
+enabling the East India Company to raise and pay the sum of
+1,200,000_l._ advanced to the publick, the common seal of the Company
+shall and may be made use of to borrow any sum or sums of money, from
+time to time, upon account of their united stock and funds, so as the
+sum total of all the principal monies which at any one time shall be
+owing upon the security of the said seal do not exceed 1,500,000_l._
+over and above the monies which might lawfully be borrowed thereupon
+before the making of this present act.
+
+If any obscurity had in fact existed upon the footing of the former
+acts, this clause of the act 6 Q. Ann is sufficient to clear it up, the
+Company are no way restrained by the plain words and meaning of this
+last clause, as to the other book debts which they may owe not under the
+common seal, because debts under the common seal are the only ones which
+could interfere either with the Bank of England or with Government
+loans.
+
+By the act 7th of George I. c. 5. p. 32. it is enacted, that it shall
+and may be lawful for the East India Company to borrow or take up money
+upon any contracts, bonds, &c. under their common seal, for carrying on
+their trade, or for lending money, by way of bottomry, so as by the
+monies already borrowed by them, and by the monies which they shall
+hereafter borrow pursuant to this act, the whole sum which they shall
+owe at any one time do not exceed the sum due at that time from the
+public to the said Company, or the sum of _five millions_ of pounds
+sterling in the whole.
+
+The plain meaning of this clause is, that the Company shall not owe,
+_under their common seal_, at any one time, a greater sum than
+5,000,000_l._ but it neither imports nor implies any restriction upon
+the Company with respect to the purchasing goods upon credit, or
+freights due to ships, or other book debts incurred in the common course
+of trade without borrowing.
+
+A criticism has been made on this clause, as if the Company could not
+take the benefit of borrowing to the amount of five millions under this
+statute, because the first part of the statute recites a plan or scheme
+which had been formed for incorporating nine millions of the South Sea
+capital stock into the stock of the East India Company, which scheme
+never took effect, and therefore it has been argued that the power of
+borrowing given to the East India Company being a part of that scheme,
+must fall with it.
+
+But the answer is very obvious: the power of borrowing given to the East
+India Company is not granted under any condition whatever, but is given
+in positive and direct words, to the amount of five millions--and the
+act does not proceed upon the intention to incorporate the nine millions
+of South Sea stock as a condition, but only recites that as a
+proposition, and gives leave to the several Companies to carry it into
+execution if they thought proper.
+
+But if any doubt had remained concerning this power of the Company to
+borrow five millions, it is fully removed, not only by their having in
+practice explained the act in the most extensive manner, without
+challenge, but by the subsequent act 23 Geo. II. c. 22. Sec. 5 and 6. which
+plainly proceeds upon the supposition, that the Company was at that time
+intitled to borrow to the amount of six millions, and allows them to
+convert 4,200,000_l._ as part of their bonds into annuities.
+
+The 33d section of the same act is a repetition almost verbatim of the
+75th section of the act 9 and 10th of king William, c. 44. by which, in
+order to prevent the Company from interfering with the Bank of England,
+they are allowed to borrow on the credit of their capital stock,
+provided the sum so borrowed shall be laid out in goods to be exported
+or otherwise employed in their trade, or lent on bottomry, and that such
+sums shall only be borrowed under their common seal, and shall not be
+payable on demand but at six months, and that they shall not discount
+bills or notes, or keep cash for other persons.--In this clause the
+words "_it shall not be lawful_," in place of "_it shall and may be
+lawful_," are erroneously copied from the printed clause 75th of the act
+9 and 10th of William, c. 44.
+
+The act 17th Geo. II. c. 17. Sec. 8. gives the Company simply a power in
+order to raise the sum of one million paid by them to Government, of
+borrowing _under their common seal_ to the amount of one million more
+than they could before lawfully borrow.
+
+This seems to be a compleat view of the whole subsisting statutes by
+which the East India Company is restrained from borrowing money; and it
+must appear evident, that by none of them the Company is prohibited from
+purchasing goods upon credit, or incurring book debts, and therefore the
+great clamour which has been raised, as if the Company had acted
+contrary to law, or in an inexpedient or improper manner, by incurring
+the book debts which it presently owes, over and above its bonds and
+annuities, must appear totally groundless and absurd.
+
+It further appears, that the Company's affairs are now in such a
+situation, that every one of these debts will be paid off in a very few
+months, and that the 40,000_l._ of additional dividend, voted to take
+place at Christmas next, will in no respect retard the payment of these
+debts; and that the Company will be further possessed, when the ships of
+this season shall have arrived, of effects equal to the payment of
+almost the whole of their bond debts, which, however, there is no
+intention nor no occasion to pay off.
+
+But supposing the whole of the Company's book debts could not be so soon
+discharged, this can be no objection to the small additional dividend of
+40,000_l._ considering the present flourishing state of the Company's
+affairs. The creditors to whom the book debts are owing are under no
+uneasiness, nor do they complain of the increase of dividend, which it
+is now allowed the Company are fully able to pay, and to continue that
+payment out of the profits of their trade alone.
+
+Every merchant, when he regulates the sum to be bestowed by him upon his
+subsistence, or the annual expence of his family, considers, _first_,
+what is the total amount of his effects, compared with his debts; and
+secondly, what is the amount of his annual profits; and if he finds that
+he has a considerable fortune over and above his debts, and that his
+annual profits are also considerable; he freely resolves, and with great
+propriety, to bestow a share of his annual profits upon the support and
+expence of his family; and it never can enter into his deliberation, in
+fixing what that annual expence shall be, whether or not at every
+particular period of the year, he is sure of having a balance of cash in
+his banker's hand; because, if his total expence is properly regulated,
+so as not to exceed what he can really afford, he knows the goods he is
+possessed of, must always be able to command cash sufficient for his
+temporary occasions: and indeed, if this rule were erroneous, there are
+many merchants in London possessed of fortunes to the amount of
+150,000_l._ and their annual profits two or three thousands, who could
+not afford 50_l._ a year for their usual subsistence. If they were to be
+restricted in the manner now proposed for the India Company, they could
+not purchase a dinner and pay their debts; their effects probably in
+America or the West Indies, in the way of trade, their returns
+uncertain, as to the particular time, and large debts due in England, as
+the price of cargoes sent abroad; so that, upon the footing of their
+banker's book, after deducting all their debts due at home, they might
+be obliged to subsist upon air for several years together.
+
+The credit of a public company is much superior to that of private
+merchants; those to whom they owe the prices of goods, freights or other
+book debts, are much more ready to indulge them with delays of payment
+than the creditors of particular merchants. The India Company is under
+no embarrasment with respect to its creditors; its only embarrasment is
+from the choice it has unhappily made of a set of Directors, who seem
+determined, if possible, to stab the credit of the Company, and to try
+to what degree of injuries and insults the patience of the Proprietors
+will tamely submit.
+
+The Proprietors have resolved to apply to Parliament, by petition
+against a bill now depending, for rescinding the 2-1/2 _per cent._
+additional dividend, voted by the general court on the 6th of May last,
+in strict conformity to the powers granted by charter. The respect due
+to the Legislature restrains me from expressing my sentiments with
+regard to this retrospective law relating to private property and public
+credit. If any thing is interesting in this happy constitution, these
+points certainly are. The questions concerning general warrants, and
+dispensing powers, were, in respect of these, of very inferior
+importance. It is the duty of every British subject to submit with
+reverence and veneration, to whatever obtains the sanction of the three
+branches of the Legislature; but when any particular bill appears, to
+common apprehension, to be of dangerous consequence, we are entitled to
+hope and presume that it never will pass into a law.
+
+     State of the East India Company's affairs with respect to the cash
+     which will come into their treasury, and what must be issued from
+     thence at different periods.
+
+                          Cash.                             Dr.
+    1767.
+  May 11.  To ballance of the account of the debts    _l._  _s._  _d._
+           and credits of the East India Company in
+           England, made out by the Court of Directors,
+           estimated to the 11th of May 1767, after
+           deducting the amount of the bonds from the
+           debt side, and what the government owes
+           to the Company from the credit side,      66,408
+
+  Sep.     To part of the produce of the cargo by
+           the Asia, that will be exposed to sale,   30,000
+
+  1768.    To part of the produce of eleven ships,
+  Jan.     viz. from Bengal and Madras, three from
+           Bombay, and one from Mocha, the prompt
+           payment,                                 665,386   13   4
+                                                    ----------------
+                                                    761,794   13   4
+
+           To this sale might be added the prompt
+           of the sale of 1000 peculs of silk,
+           by the fourteen ships from China,        150,000
+
+           China ware, drugs, &c.                    20,000
+                                                    -------
+                                                    170,000
+                                                    -------
+
+           To balance to February 5, 1768, brought
+           forward,                                 544,485   13   4
+
+  July 31. To part of the produce of the eleven
+           ships to be exposed at the March
+           sale, the prompt,                        332,693    6   8
+
+           To the private trade,                     22,000
+
+           To transacting the annuitants,             1,687    1
+                                                    ----------------
+                                                    900,866    6   8
+
+
+    1767.              _per Contra_,                 _Cr._
+  Oct. 31.  By 1/4 interest on the bonds and
+            annuities, deducting what received
+            from government, due at Michaelmas,      12,679
+
+  Dec. 25.  By 1/2 a year's salaries, and other
+            contingencies,                            5,000
+    1768.
+  Feb. 5.   By 1/2 a year's dividend on the
+            stock, at 12-1/2 _per cent.
+            per annum_,                             199,630
+                                                    -------
+                                                    217,309
+            Balance of cash in favour of the
+            Company in February 1768,               544,485   13  4
+                                                    ---------------
+                                                    L761,794  13  4
+                                                    ---------------
+
+            By the above balance,                   544,485   13  4
+            By silk and drugs, &c. on the
+            _Dr._ side,                             170,000
+                                                    ---------------
+                                                    714,485   13  4
+                                                    ---------------
+     1768.
+  March 25. Due to government, by agreement,
+            the first payment                       200,000
+
+  May 1.    By 1/2 a year's interest on the
+            Bond and annuities, deducting what
+            received from the government, due
+            at Lady Day                              25,358
+
+  June 29.  By 1/2 year's salaries, and
+            other contingencies,                      5,000
+
+  Aug. 5.   By 1/2 a year's dividends,              199,630
+                                                    -------
+                                                    429,988
+            By balance of cash in favour
+            of the Company in August 1768           470,878
+                                                    -------
+                                                    900,866
+
+     When this account was produced to the general court by the accurate
+     and intelligent Director who made it out, he declared that he had
+     dissented in the court of Directors from the opinion of the other
+     Directors as to the 12-1/2 per cent. dividend, in which he had been
+     joined by several other Directors, though a majority opposed this
+     dividend, and he explained the above account in a very clear and
+     satisfactory manner, and shewed, that in the preparing the account,
+     he had made the most ample allowances of every kind, and declared
+     himself ready to answer every objection which the other Directors
+     could offer against it.--The other Directors fairly acknowledged
+     that none of them had carried their calculations so far down as
+     February 1768, when the dividend was to become payable.
+
+
+       *       *       *       *       *
+
+[Transcriber's Notes:
+
+The transcriber made these changes to the text to correct obvious
+errors:
+
+  1. p. 11 councel --> council
+  2. p. 12 commodies -->  commodities
+  3. p. 20 50l. --> 50_l._
+  4. p. 20 subsistance --> subsistence
+
+End of Transcriber's Notes]
+
+
+
+
+
+End of the Project Gutenberg EBook of A Short View of the Laws Now
+Subsisting with Respect to the Powers of the East India Company, by Anonymous
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