106 
It is necessary to add, that the 
balance on the annual account at the 
India house, instead of amounting 
to 12,020/. in favour of the compa- 
ny, as statedin that account. would 
have amounted to 1,155,505 against 
them, had wot the company, in 
making up their account for that 
year, credited themselves with 
100,000. borrrowed of the bank, 
with 500,600, borrowed of go- 
vernment out of the tea dutics, and 
with bonds issued for 567.525¢, 
more than were paid off, amount- 
ing in all to the sum of 1,167,525/. 
This defalcation in the company’s 
annual account was owing, partly, 
toa dimunition in the produce of 
their sales, and, partly, to a greater 
expenditure on account of India and 
China than first intended. 
It is also proper to add, that, in 
the course of the debate, it was 
generally admitted, that the debts 
in India might, at that time, be 
fairly estimated at 30,000,000; of 
which seventcen millions were pay- 
able in England, at the option of 
the holders of the securities. 
After lord Morpeth had conclad- 
ed his very clear and candid expo- 
sition of the company’s situation, 
along debate arose, which was ad- 
journed to the 15th and afterwards 
to the 1S8th-instant, concerning the 
present state of their affairs and 
their future prospects, as well as on 
the causes, that had Jed to the rapid 
and alarming increase of their debts 
since 1793, when their eharter was 
Jastrenewed. Sir Arthur Wellesley, 
without controverting any of jord 
Morpeth’s statements or deduetions, 
endeavoured fo shew, that with the 
return of peace the distresses of the 
company would be at an end: and 
that, instead of the present deficit, 
there would then be a surplus pe- 
venue of at least 740,000/. a year. 
ANNUAL REGISTER, 1806. 
He next endeavoured to prove, tha 
the augmentation of the company’ 
debts was, in a greaf measure, ow- 
ing to the practice, that had been 
pursued, of making up investments 
jor Europe by means of loans con- 
tracted in India; and, in proof o 
this position he read part o 
a minute put on record by lord Wel- 
lesley in June 1798, wherein this’ 
cause of the increase of the com- 
pany’s debts is distinctly pointed 
out, and a remedy suggested for it, 
which, however. the court of direc- 
tors did not think proper to apply. 
Jn answer to this charge against the 
court of directors, Mr. Grant pro- 
duced a numberof statements and 
calculations to prove, that, instead 
of ahalance of 54 millions, in which 
the hon. general made the commerce 
of the company indebted to the terri- 
torial revenue and Indian debt, 
there was a balance, in the last seven 
years, of half a million duc to the 
commerce. With respect to the share 
of tord Wellesley in contributing to 
the present alarming state of the 
company’s finances, the honourable 
member stated, that during that 
nohbleman’s administration of India, 
214 millions had been added to the 
company’s debt: and with regard to 
the influence of the late wars in 
India on the general prosperity of 
the company’s affairs, ** he thought 
it right to observe, that those wars 
had euormously increased the ex- 
pences and debt of the company, 
withoutadding anysecurity necessary 
to us ; without even adding much to 
our permanent revenue ; and at the 
expence of our reputation for justice 
and moderation in India.” Mr. 
Grant had no reliance on the im- 
provement of revenue, to which the 
hon. general looked forward on the 
return of peace, and thought ‘our 
only secure dcpendance was ona 
system 
