count, containing the particulars of the same establishment, was laid before the House on the 7th of February last, and this made it 927,9451. The third account, which was produced the 11th of last month, stated it at 616,556l.; and he informed the House, that a fourth account of the same establishment existed, which was made out in November last for the use of the directors, and which differed from all the rest; that made it 764,451.That gentlemen should observe how these various accounts tallied, the directors, in February 1784, estimate their civil establishment at 350,0007. and at that moment a material purpose was to be answered by it. In November following, their accountant made out an account of particulars, which more than doubled that estimate. Another account was produced in February last,which almost trebled that estimate; and, finally, a fourth account was produced last month, which differed from all the rest, and which reduced the amount to 616,556l. On these facts, he asked, whether any confidence was to be placed in such contradictory accounts? What real information did they give? what proceeding could be safely founded upon them? It would be said, perhaps, that some charges had been erroneously carried to the civil account, which ought to have been placed to the military. If so, as much must be added to the one side as was deducted from the other. But he did not believe that to be the case; and, if it were, it only followed, that both accounts were erroneous. The governor's body guard made part of the state of the government. It never took the field, and, he believed, had always been considered as belonging to the civil establishment of the presidency. That this, however, was but a petty article in such a total.

Mr. Francis then proceeded to the military establishment. The account laid before the House on the 7th of February last, stated the annual existing charge at 1,078,510l. which, he affirmed, was not half the real expense: as soon as he saw it, he had expressed his astonishment at so sudden and so great a reduction of the military expense, which in the last Bengal estimate stood at 268 lacks and a half, that is, very little short of three millions, besides an arrear of 72 lacks, making in all above three millions and a half, was now suddenly reduced to one million. On that occasion the House were told that reductions had actually taken place which would

account for the difference. He asked what authority there was from Bengal to vouch for such reductions, and found there was none. The estimate of the year 1784-5 was not received; consequently the account must have been made up by mere conjecture and speculation at the India-house. An hon. gentleman, who was always very good to him, professed to wonder how he in particular could have a doubt upon the subject. He allowed him, Mr. Francis said, even more knowledge of the subject than he pretended to possess, for the charitable purpose of leading the House to this inference, and of leaving this impression on their mind, that he was speaking against his better knowledge, and acting against his conviction. That the estimate of 1784-5 was at last arrived, and the House had now got possession of it. That it ought to have been made up sooner, and to have been in England many months ago; it was dated the 22d of November last. That it ought to confirm the account of existing military charges delivered in by the court of directors, and vouched for by the right hon. gentleman; that the House would find that just the contrary was true. The estimate for the year ending the 1st of May 1785, that is, for a complete year of peace, was at 2,320,1497. 12s. exclusive of an arrear of 578,1247. which made the whole military charge of the year 2,898,2737. 12s. stead of this sum, which was the true one, the directors tell the House of Commons, that the charge of the Bengal army is only 1,078,510l. Was this a fact or not? Was he justified in saying that the account was grossly fallacious?

In

From these false, contradictory accounts, Mr. Francis turned to the real state of their finances in Bengal, as he found it exhibited in the estimate drawn up by that government in November last. It was not likely that they should undervalue their resources, or over-rate their distresses. He reminded the House, that the estimate of the preceding year, that is, of the year ending in May 1784, shewed a deficiency of 56 lacks, or about 600,000l.; that he had spoken of this as a most alarming circumstance. By way of satisfaction it had been then said, that that estimate did in effect provide for a war establishment; that it included all the arrears and windings-up of the war; and that the deficiency of 56 lacks would be made good in the succeeding year. That the House

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cumstance. The court of directors, in their six years' estimate, had taken credit annually for 450,000l. as the produce of these monopolies, and had appropriated it to their commercial fund. In the first place, the produce fell short by one half of what they expected; and, whatever it might be, the whole was thrown into the general fund, out of which it neither was nor could be separated for any special service. To that amount, therefore, the six years' estimate was annually defective. On the subject of the China investment he had a question to ask, which was naturally suggested by the mention of the salt monopoly. The Bengal estimate made no provision for China, but the directors calculated on 250,000l. for that service, to be remitted by Bengal. The question therefore was, by what means the China investment of this year was to be provided? The Company had sent out 18 ships, whose cargoes of tea only, supposing no investment of raw silk, would come to 540,000l. at 30,000l. per ship. Towards this sum the lead and woollens sent from England went but a little way, and the Company had sent little or no bullion. How was the difference to be provided? Mr. Francis concluded, recapitulating the principal facts on which the motion he proposed to offer to the House was founded. That he had said, that the estimates and accounts on the table were defective, contradictory, and fallacious; he had shewn, that in some instances, they stated offices and employments without salaries, and in others omitted the establishment entirely: that there were four different accounts made up in one year of the same establishment; that they had stated the establishment of the army at much less than half the real expense; and finally, that the directors had taken credit for a surplus of revenue to the amount of a million and a half, when in fact there was a deficiency to that amount, which proved an error of three millions in one year's revenue in Bengal: that false information was worse than none; in absolute darkness there was a sort of security in standing still, but by false lights men were led to destruction: that parliament and the nation had been grossly deceived; that the deception ought to be cleared up. There was one way of tracing it to its source, which he meant to propose; and that in pursuing this inquiry, he did not doubt that he should have the support of the Chancellor of the Exche

quer, who had very lately declared, that, in matters of public account, every idea of concealment and disguise was pernicious and disgraceful. His intention was to move for a committee to investigate and to state errors, omissions, and contradictions, which appeared upon the face of the accounts. That inquiry would throw a new light upon the real state of the Company's affairs; the House would then see whether the hopes, the promises, and the assertions, which had been boldly held out to parliament, concerning the prosperous state of the Company's affairs, had any foundation or not; and when they knew the truth, the House would know how to act. He therefore moved, "That a committee be appointed to take into consideration the several lists and statements of the expense of the East India Company's establishments in India, which have been laid before this House in the course of the present year 1785, by the court of directors of the said Company; and also, the estimate of the probable receipts and disbursements of the Bengal government for the year ending the 1st of May, 1785, which has since been received and laid before this House; and to compare the said several papers with each other, and also with the esti mates and statements laid before this House by the said court of directors in the course of the last year 1784, and to report to this House the result of such comparisons, with their observations thereupon."

Mr. N. Smith (deputy chairman of the court of directors) rose to controvert the facts alleged by Mr. Francis, which, if true, he said, would amount to accusations of a deep and criminal nature against the court of directors and himself; but he trusted their conduct would be found clear and proper. With regard to the estimates that had at different periods been presented by the directors to that House, great pains had been taken to make them with all possible accuracy. It was true, that the present estimate of the probable resources and disbursements of the Bengal government, exceeded the estimates presented last year, und the reason was this: the peace was not concluded so early in India as was expected, and the estimates of last year were made out upon an idea, that every thing could by that time have been put upon a peace establishment; whereas, in fact, the full war establishment was continued for a considerable part of the year,

which of course caused a great excess of disbursements. Exclusive of that circumstance, there was no other error in the present estimates, but a single mistake, which was, that several articles were put under the head of civil department, that should properly have been ranged under the head of general department. When the estimates were looked to, that would appear, and then it would be seen that the arrears of the army were among the disbursements, from the 1st of May 1784, to the 1st of May 1785. In answer to the remarks of Mr. Francis, that the directors had not given an account of all the emoluments of certain officers of the Company in India, he begged the hon. gentleman to recollect, that the estimate on the table was an estimate delivered for the first time to that House, in compliance with the direction of an Act of Parliament passed only last session. The making it out, therefore, was a new matter, and attended with some difficulty; he could assure the House, however, he had done every thing in his power to have it correct: but the directors were necessarily obliged to ground it on the information they received from Bengal, and there were several officers whose emoluments they had not received accounts of yet from India. Mr. Smith said, the estimate of the next year, he doubted not, would wear a different aspect, as the whole of the army, &c. would be upon a peace establishment, and the directors had sent out the most positive orders, to have the reductions carried so low, as from 200 lacks to 120 lacks. What also induced him to think flatteringly of the growing prosperity of the Company, was, the great increase in the produce of their sales at home, especially of teas, which had put them so much in cash, that the warrants were already signed for the payment of 500,000%. in part of the sum due to government for duties, which debt they were not obliged to pay yet unless they chose it.

Mr. Baring contended, that the arrears of the army made a great part of the disbursements in the present estimates. The deficiency in the resources was, he observed, 149 lacks, whereas the arrears and other articles, which he enumerated, to the amount of 190 lacks, were among the disbursements over and above the annual expenditure. This it was necessary to remark, lest gentlemen should entertain an impression that the present excess in the disbursements was an annual excess,

whereas it was merely an incidental one, and such as would not again occur, provided peace continued in India. Mr. Baring urged the increased prosperity of the Company at home, declaring, that though in their estimate last year, the directors had given themselves credit for three millions and a half only, as the probable produce of their sales, they had actually produced considerably more than four millions. He stated also, that they had bonds to the amount of 700,000l. locked up in their chest, besides the 500,000l. that they were about to pay to the public. As they were not by law obliged to pay this latter sum immediately, their paying it was a proof in their favour; because it shewed, that although they were not under any obligation to pay off any part of the sum they stood in debt to the public for duties, yet, they were ready, as soon as they came into cash, to act fairly by the public, and diminish their debt.

Mr. Hussey said, he had attended at a general court lately, for the purpose of informing himself upon the state of the Company's affairs; and he gave an account of what passed at the meeting, where he had a particular paper read at his instance, which threw great light upon the subject. From this he went back to the state of the Company's affairs in 1772, and again in 1780, declaring the deficiencies at each of those periods, and comparing their situation then with their situation at present. He stated, that according to the estimate of the last year, the directors had led the House to imagine, that their resources in India would exceed their disbursements. there, in the sum of 1,500,000l.; whereas it was now evident, that the disbursements in India exceeded the resources in the sum of 1,200,000l. ; a contradiction which, in his opinion, made it highly necessary that a committee should be appointed to inquire into the cause of it; for nothing was more evident, than that parliament had been deceived by the reports and estimates laid before them by the Company.

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Major Scott. I rise, Mr. Speaker, to reply to a few of those observations which fell from the hon. mover, which I think were particularly pointed at me. hon. gentleman and myself have been in the habit of sending to the press whatever falls from us in this House. If, therefore, I have mis-stated any thing, my statement of last year, which I now hold in my hand, will rise up in judgment against me; and by that statement I desire to be tried by

this House and the public. The hon. gentleman appeals with apparent triumph to the estimate lately received from Bengal, to prove that I, and those who agreed with me, have held out hopes to the public which never can be realised; that we foretold it last year, and now we must confess it. But the fact is simply-All my calculations went upon a supposition that peace would be concluded ten months earlier than it was; and that the various retrenchments in consequence of that peace would take place ten months sooner than they did. The peace with Tippoo Sultaun was not signed till the 11th of March, 1784. A very considerable detachment serving from Bengal, upon the coast, could not therefore return before the rains set in, and were obliged to canton for the monsoon in the northern circars. Other military reductions in Bengal were consequently postponed for some months; and the estimate states, that the military expenses from the 30th of April, 1784, to the 1st of May, 1785, would be 206 lacks of current rupees, buildings and fortifications included. But, Sir, if we look forward to the next year, we shall find, that the government of Bengal takes credit for a larger surplus than I took credit for on the 2d of July last. I then stated, "that from the net revenues of Bengal, Bahar, and Orissa, Benares, vizier's subsidy, and the profit upon salt and opium, including also the sale of our imports; there will remain a surplus of one hundred and fiftyseven lacks of rupees for the purchase of future investments; for paying the interest of the bonded debts of India, and for a gradual liquidation of the principal." I took the revenues at the average of former years, after deducting charges of collections. I allowed 130 lacks for the military and contingencies, 50 for civil and marine, and 20 for durbar and stipends. Now, Sir, the court of directors have received, by the Surprise, an official_estimate from Bengal, which I moved for two days ago; but by mistaking the title of it, a wrong paper has been laid upon your table. I will, however, read that estimate to you.

"An estimate of the sum which it is supposed may be annually applied in Bengal to the discharge of the honourable Company's debts in India, after the end of April 1785; by which time it is supposed that the reductions required to produce it may take place:

Which leaves a surplus of 198 lacks; 74,000 rupees, for liquidation of debts, and the purchase of investments, instead of 157 lacks, as I stated last year.

Added to an unexpected protraction of the war, the hon. gentleman will consider that several unexpected demands have been made upon the Bengal Treasury for last year. The troops captured by Hyder Ally and Tippoo Sultaun, during the war, amounting to 1,200 Europeans, and several thousand sepoys, had great arrears to receive, some of them two years at least; but these arrears once paid, the charge is at an end. I entirely agree with the hon. gentleman, that Bombay must depend upon Bengal for every thing; but that Madras has no resource, I deny. Lord Macartney states, that for this year, that is, from the 1st of July, 1784, to the 1st of July, 1785, its resources will exceed its charges 33 lacks of rupees and upwards; and that in future this sum will be increased. In short, Sir, there has been no deception in any fact, on the part of the directors. We had reason to suppose peace would be concluded several months before it was, and that the arrears would have been paid off sooner than they will be. I always stated the debts of India, in consequence of the war, at six millions, or six crores of rupees. They are now stated by the governor-general and council at seven crores, 100,000 rupees, of which not more than five crores and a half are upon bond, and bear interest.

Upon the subject of our resources in India, I beg, with the indulgence of the House, to read the following extracts of two letters from Mr. Hastings to me, dated in October and November last, many months subsequent to the period when the estimate commences: "In a letter which I wrote last year to the court of directors, dated the 16th of December, and sent by a new route over land, I promised, or rather declared, my own firm belief, that we should be able before the

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