A Short View of the Lav-s 
 Now Subsisting with Respect 
 to the Powers of the East In 
 dia Company. . .
 
 For 
 
 nil 
 
 UNIVERSITY OF CALIFORNIA 
 AT LOS ANGELES
 
 A 
 SHORT VIEW 
 
 O F T H E 
 
 LAWS 
 
 Now fubfiftlng with Refpeft to the Powers of the 
 
 EAST INDIA COMPANY 
 
 To borrow Money under their Seal, and to in- 
 cur Debts in the Courfe of their Trade, by 
 the Purchafe of Goods on Credit, and by 
 freighting Ships or other Mercantile I rank 
 gftions, 
 
 LONDON: 
 
 Printed for W. NICOLL, in St. Paul's Church-Yard. 
 MDCCLXVII.
 
 .' 
 
 A fhort View, 
 
 AS many erroneous opinions have been in- 
 duftrioufly propagated with refpect to the 
 powers of the Eaft India Company to contract 
 debts, I think it a duty to the Company and 
 to the public, to give a fair ftate of the laws 
 now fubfifting with refpect to thefe matters, 
 by which the prejudiced may be fee to rights, 
 the ignorant informed, and the malevolent de- 
 ceivers of the public expofed and detected. 
 
 By aft 9 and 10 William' III. c. 44. 75.' 
 the Company is allowed to borrow on the credit 
 ' of the two millions lent to Government, but is 
 reftrained from borrowing any greater fums than 
 mall be employed in their trade, without, how- 
 ever, any reftriftion as to the amount of fuch 
 borrowing, only fuch borrowing muft be under 
 common feal. 
 
 By 86 of the fame ftatute, the Company is 
 directed to take care that the fum total of its 
 ' $ debts do not exceed the amount of its funds and 
 *i effefts, and if they mail reduce their funds and 
 J effects by dividends, fo as not to leave fufticient 
 anfwer their debts, the perfons who receive 
 B the 
 
 354895
 
 . 
 
 the dividends are each made anfwerable to pay 
 the 'debts, to the amount of the dividend re- 
 fpectively received. 
 
 By act 9 Ann, c. 17. 2. The Company 
 having lent to the public i, 200,000 /. more, 
 they are allowed to borrow under their common 
 feal, to the amount of i, 500,000 /. above what 
 they might lawfully borrow by the preceding 
 ad. 
 
 By act 7 Geo. I. c. 5. 32, the Company is 
 allowed to borrow under their common feal for 
 carrying on their trade or lending on bottomry, 
 to the amount of the fum due from the publick, 
 or five millions. 
 
 By act 17 Geo. II. c. 17. 8. the company 
 having advanced one million more to govern- 
 ment, the power of borrowing under their com- 
 mon feal, is extended to one million above what 
 they might borrow before that ad. 
 
 In confequence of thefe acts, the Company 
 has always confidered itfelf entitled to borrow to 
 the amount of fix millions under its common feal. 
 
 By ac*t 23 Geo. II. c. 22. 5 and 6. the Com- 
 pany was authorized to convert part of its bond 
 debts into annuities, to the amount of4,2oo,coo/. 
 but it is declared that its power of borrowing 
 granted by former acts mould continue in force, 
 but that the amount of the annuity mould be 
 computed as part of what they were empowered 
 to borrow. 4 
 
 In
 
 r 3 i 
 
 In confequence of this laft act, the Company 
 did convert 2,992,440 /. or near three millions of 
 their bonds into annuities, and they owe befides, 
 by bonds under their common feal, 2,898,1247. 
 fo that the total amount of their bonds and an- 
 nuities is 5,890,5647. which is 109,4367. under 
 the fix millions which they are entitled to bor- 
 row by bonds and annuities. 
 
 In the courfe of the Company's trade, they 
 have been in the practice, like all other mer- 
 chants, of purchafing goods upon credit, and 
 of contracting for mips upon freight, and only 
 advancing a part of that freight 'till after the 
 voyage was compleated. It" was impofiible 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 expofed 
 to impofition in the quality of the goods, and to 
 mifconduct in the freighters of the mips, with- 
 out retaining in their hands a proper fum to re- 
 pay fuch damage as the Company might fuffer 
 by the hands of the freighters or merchants. 
 
 It never therefore was fuppofed that the 
 Company tranfgreffed the ftatutes which re- 
 ftrained their power of borrowing under their 
 feal to fix millions, by carrying on their trade 
 in the way of purchafing goods on credit ; and 
 indeed if this had been meant, the law would 
 and ought to have allowed them a more exten- 
 five power of borrowing , for it is certain the 
 Company's fortifications in India have coft more 
 than three millions, and the nature of their trade 
 B 2 in
 
 [ 4 ] 
 
 in India requires that they mould always have 
 to the value of at leafl three millions^ in goods 
 and cam, or what is called cruick ftock, em- 
 ployed in India for making their inveftments, 
 (including the cargoes afloat going out and com- 
 ing home) fo that here is the whole furn which 
 they are allowed to borrow, difpofed of in In- 
 dia, beiides the value of the goods which they 
 muit always have in their warehoufes at home, 
 to the amount of more than two millions. 
 
 If it had been therefore the intention of the 
 Legiflature to reftrain the Company from pur- 
 chafing goods on credit, or from incurring 
 freights or other fuch debts, and that their 
 whole debts of every kind mould not exceed fix 
 millions, it is very plain to thofe who are 
 verfant in mercantile tranfaclions, and who 
 know the (late of this company's trade, that they 
 could not have carried on their affairs in fuch 
 a manner as they have done, nor have rendered 
 the trade of India fo great an obje6t as it is, 
 to this commercial kingdom. 
 
 It has fometimes happened to this Company, 
 as it frequently happens to other merchants, that 
 its returns have not arrived at the time expec- 
 ted, and that their inveftments during fome par- 
 ticular years have fallen fhort ; in fuch cafes 
 they have riot been abk to pay, with the ftricteft 
 punctuality, the price of the goods bought on 
 credit, nor the freights due for mipping or other 
 articles of the fame kind -, and in fuch cafes the 
 furnifaers of thefe goods or mips have indulged 
 the Company with a delay of payment -,, and in 
 
 order
 
 [ 5 3 
 
 order to indemnify themfelves for that delay, 
 thefe creditors have either taken a higher price 
 for their next goods, or fometimes have been 
 allowed interefl from the Company, but in no 
 inftance have theie debts, fo contracted, been 
 converted into debts under the Company's feal, 
 nor were ever considered as money borrowed. 
 
 The purpofe of reftraining the Company as 
 to their power of borrowing under their com- 
 mon feal, was merely to prevent their interfer- 
 ing in the market with government loans, ex- 
 adtly upon the fame principle that private lot- 
 teries, &c. are prohibited by law; but in all 
 other refpecls the Company is unlimited, as every 
 private merchant is, as to the exercile it may 
 chufe to make of its credit in the purchafe of 
 goods, or incurring debts in any other mode ex- 
 cept coming into the market to borrow under 
 their feal, by which alone the Company can in- 
 terfere with the loans required by Government 
 for the purpofes of the ftate. 
 
 So long as the Company carries on its trade 
 with advantage to itfelf and the nation, and pre- 
 ferves entire, an ample fufficiency of funds to 
 pay all its debts, and repay its capital, there 
 can be no reafon in common fenfe for prevent- 
 ing its employing its credit in the purchafe of as 
 great a quantity as poffible of our own commo- 
 dities to lend to India, and employing as great 
 a number of fnipping as the trade will poflibly 
 allow. 
 
 The
 
 t 6 ] 
 
 The Company's trade is fo much extended 
 of late years beyond its former limits, that its 
 power of borrowing on annuities and bonds ought 
 allb to have been increafed; for if fix millions was 
 thought reafonable forty or fifty years ago, the 
 publick ought now by the fame parity of reafon 
 to allow at lead eight or ten millions to be bor- 
 rowed under feal, efpecially as the wealth of the 
 nation, and of coniequence the market for bor- 
 rowing has To greatly increafed during that pe- 
 riod. The expenfive wars which the Company 
 carried on for many years, obliged them, for 
 want of cam, or a power of borrowing, to di- 
 minim both their exports and imports to the 
 great prejudice of the nation , fo that the king- 
 dom in general has no reafon to applaud the 
 wifdom of that law which retrained the Com- 
 pany to fix millions. Befides, we have of late 
 years extended our China trade beyond any thing 
 that was ever attempted in former times, infomuch 
 that above three millions fterling is now invefled 
 in teas alone. It is impoffible that we could 
 either have carried on thefe wars which have 
 ended with fo much fuccefs, or have extended 
 our commerce and the exportation of home com- 
 modities to the -amazing degree we have done, 
 if the ftatutes reftri&ing our borrowing under 
 feal had been underftood to prohibit the ufing 
 our credit in the purchafe of goods. 
 
 The debts due by the Company at prefent, 
 exclufive of its bonds and annuiries, are par- 
 ticularly let forth in an account delivered in by 
 order of the Houfe of Commons, the particulars 
 of which debts are thefe : 
 
 For
 
 [ 7 1 
 
 For cuftoms on goods, fold and 
 unfold, now in England, f 1,200,605" 
 
 The cuftoms are not payable till the goods are 
 fold, and even as to thofe fold, a long delay 
 of payment is always allowed. The arrear of 
 cuftoms on goods fold, is at prefent about 
 300,000 /. or 400,000 A 
 
 To what owing for filver and to 
 fundrys, with intereft thereon, 581,756 
 
 The greateft part of this debt is due: to the 
 bank of England* as the price of filver bought 
 from the bank for exportation, feveral yeara 
 ago. The Company never granted any fecurity 
 under their feal for this debt, more than for the 
 price of other goods bought on credit ; and this 
 debt ftands at this day upon the footing, of a 
 fimple entry in the Company's books, and in the. 
 books of the Bank, as a fum due for the price 
 of filver, and the Bank have willingly accented 
 intereft at 4 per cent, and have indulged the 
 Company with a delay of payment. 
 
 * 
 
 To the amount of bills of exchange 
 drawn from India, unpaid, with in- 
 tereft, - ' - 338,000 
 
 To freight and demurage, 305^,000 
 
 To tradefmens bills in the depart- 
 ment of the committee of Jhipping,. 15^909 
 
 To
 
 [ 8 ] 
 
 To ditto, in the committee of buy- : 
 ing, - 64*07$ 
 
 To dividends 'on flock not yet de- 
 manded, - - 23^83 
 
 To dividend on ftock, due at Mid- 
 fummer, at the rate of ioper cent. 859,704 
 
 To intereft on annuities to Mid- 
 fummer, including intereft not yet 
 demanded, - - 75A6 
 
 To intereft on bonds to Midfum- 
 mer, including intereft not yet de- 
 manded, - 60,553 
 
 To commiffion due to fupercargoes. 30,000 
 
 To the proprietors of goods fold in 
 private trade, - 75,900 
 
 To warrants patted the court un- 
 paid, - 7,500 
 
 To alms-houfe at Poplar, - j 3,503 
 
 To falaries of clerks, &V. and for 
 tradefmens bills for work done to the 
 houfe, &c. 5000 
 
 To ballance to government for naval and gar- 
 rifon ftores received in India, 9,223 /. but as go- 
 vernment
 
 [ 9 ] 
 
 Vernment owes to our company 33,750/. as the 
 price of falt-petre, this ought not to be ftated. 
 
 Thefe are the whole debts dated by the Di~ 
 fectors themfelves as due by this Company, be- 
 fides their bonds and annuities, a great part of 
 them are not payable in the common courfe of 
 bufmefs for a confiderable time, fome of them 
 not till the year 1769, and the Company are 
 pofleffed of effects now in England, independent 
 of the cargoes of this year daily expected, fuf- 
 ficient to pay them all ; but at any rate none of 
 thefe debts fall within the prohibition of the fta- 
 ftutes by which the Company is reftrained from, 
 borrowing under, their common feal to a greater 
 amount than fix millions, for none of thefe debts 
 have been borrowed under the Common feal, 
 nor indeed have been borrowed at all in the fenfe 
 meant by the act of parliament, but are merely 
 book debts contracted as the price of goods, 
 &c. in the common courfe of merchandife. 
 
 It further appears by a calculation made by 
 one of the Directors themfelves, a member of 
 the committee of treafury, that by the fale of 
 goods in the common courfe of the Company's 
 fales, the Company will be in cam, to pay off 
 all thefe debts and allb to pay the dividend of 
 6-1 per cent, againft the month of February 
 1768. A copy of this account is annexed- 
 
 But whatever may be in that matter, it is fuf- 
 
 ficient for the prefent argument, to fhew thae 
 
 none of the debts due by the Company, over 
 
 and above their bonds, fall within the prphibi^ 
 
 C tioa
 
 tion of the ftatutes which have reftrained the 
 Company's power of borrowing under feal;, 
 none of the Company's creditors have com- 
 plained of the late increafe of dividend, the Di- 
 rectors alone and their faction have objected to* 
 it, and have pretended as their excufe that they 
 deemed it illegal to make any increafe of divi- 
 dend while the Company owed any debts beyond 
 the fix millions in bonds and annuities. They 
 have not urged the argument as a matter of in- 
 expediency merely, for that argument would 
 have appeared too groundlefs when the payment 
 of all thefe creditors muft in every way take 
 place almoft immediately, but they have put 
 the argument on an objection of illegality,, 
 founded upon the ftatutes which reftrain the 
 Company's power of borrowing-, and indeed if 
 the objection of the Directors had arofe from in- 
 expediency alone, they could not have been j ug- 
 lified in making fo violent and obftinate an op- 
 pofition to the lentiments of the Proprietor 
 nor could they be juftified as honeft men in en- 
 deavouring to fhake the very foundation of the 
 Company's credit, and to injure its flock, in 
 order merely to fave the Company from paying. 
 a fum of 40,000 /. more or lefs, in February 
 r.ext. But indeed upon the footing of the Di- 
 rectors argument that the Company can never 
 divide if they have other debts befides their 
 bonds and annuities, no dividend can ever take 
 place, for the Company cannot cany on their 
 trade in a proper manner without contracting 
 inch debts as the price of goods purchafcd on 
 credit, and die freights of ihips employed by 
 diem, 
 
 It
 
 It is proper therefore, after having premiled 
 this general view of the ftatutes which reftrain 
 the Company's power of borrowing, to confider. 
 thefe ftatutes more particularly one by one, to 
 fee if we can difcover any pretence for that 
 doubt which the Directors have affected to en- 
 tertain concerning the Company's power of bor- 
 rowing. 
 
 It is extremely remarkable, that when the Di- 
 rectors were afked in the general court whether 
 they had taken any opinions of councel to juftify 
 their pretended doubt as to the Company's 
 power of contracting fuch debts, they declared 
 that they had not, and the chairman faid, he 
 did not think they would have been juftified if 
 they had taken fuch opinions. Nothing can 
 (hew more clearly the unjuftifiable motives of the 
 Directors oppofition than this anfwer : they op- 
 poled the dividend upon pretence of a doubt of 
 the Company's power of incurring debts beyond 
 fix millions, and yet they did not take the opi- 
 nion 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 ufe of their 
 pretended doubt as a mafk to cover the real mo- 
 tives which induced them to engage in their 
 confpiracy againft the intereft of the proprietors 
 whole fervants they are. 
 
 The act 9 and 10 of king William, c. 44. 
 
 contains no claufes which can any way reftrain 
 
 the Company's power of borrowing or extending 
 
 C 2 its
 
 t 3 
 
 Its trade, except what is to be found in fectlort 
 61, 62, 64, 75 and 86. By fections 61, 62 
 and 64, there is no other reftriction except 
 that the Company fhall not, in any one year , fuc- 
 ceflively, fend or caufe to be fent to the Eaft In-^ 
 clies from England or any other country, goods, 
 bullion, or commodies, to any greater value 
 than their principal flock fubfcribed. And the 
 fact is, that the Company never has fent in any 
 cue year^ goods, bullion or commodities to the 
 value of one-third of their principal flock, and 
 therefore no argument can be founded on the 
 limitations contained in thefe three claufes. 
 
 The feetion 75 of this flatute, begins with a 
 fecital 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 fhall be 
 creeled, permitted or allowed by act of parlia- 
 ment, and then th.e act proceeds, that for the 
 better fjecuring the priviledges of the Bank of 
 England, It Jhall not be lawful (in the record it is 
 JhaU ^nd may be lawfull) for any Company to be 
 eftablifhed by virtue .of this act, to borrow or 
 give fecurity for any fum or fums of money on 
 .credit, on any publick funds hereby granted, 
 and that it fhall not be lawful for fuch Company 
 to b.e eftablifhed by virtue of this act, to borrow 
 Or give fecurity for any greater fum or fums of 
 ynQjiey, than fuch as fhall be really and bonafde 9 
 expended. and laid out in and for the buying of 
 goods, bullion or commodities, to be exported 
 for <he proper account of the fajd Company to 
 |b tilabjifhaj, or fhall be otherwise employed 
 j# keir jrade, all which (up or fums of
 
 t '3 ] 
 
 (o to be borrowed for the purpofe aforefald* 
 {hall be borrowed only on their common feal, 
 and lhall not be made payable or bona fide* 
 agreed to be paid at any time lefs than fix months 
 from the time of borrowing thereof: and that 
 it mall not be lawful for the Company to be 
 eftablimed by this at, to difcount any bills of 
 exchange, or other bills or notes whatsoever, or 
 to keep any books or -cam for any perfons what- 
 -foever, other than only the proper monies and 
 cam of the faid Company. 
 
 The plain import of this daufe is not to re- 
 ftrain the Company with refpe6i to the extent 
 of their trade, but merely to prevent its inter- 
 fering with the bufmefs carried on by the Bank 
 of England. The purchasing goods upon cre- 
 dit can never be confide-red as an interference 
 of that kind. 
 
 The 86th fe&ion of this aft does no 
 way reftrain the Company with relpecft to the 
 amount of its debts, excepting only that the 
 Company {hall take care that the fum total of 
 all the debts which they Ihall owe at any one 
 time mall not exceed the value of the principal 
 cr capital ftock or ftocks which at any fitch time 
 Jhall be and remain to the faid fociety undivided ; 
 and that in cafe the Company, by any dividend 
 whatfoever to be made amongft themfeives, 
 fliall reduce or leffen their joinc ftock, princi- 
 pal or capital, without paying off or propor- 
 tionably reducing the fum total of their debts, 
 - .0 that the value of the joint-dock, principal or 
 undivided, lhall not be fumci^ac to aji- 
 
 fwer
 
 L 14 ] 
 
 fwer their juft debts then remaining unpaid. In 
 every fuch cafe the particular members receiv- 
 ing fuch dividend fhall be feverally liable to the 
 amount of the dividends received, to pay and 
 iatisfy the debts which fhall remain due and 
 unpaid by the Company. 
 
 The plain import of this claufe of the act, is 
 to fecure the creditors of the Company from 
 any unjuftice by the Company's dividing their 
 effects fo as not to leave a. fufficiency for pay- 
 ment of its whole debts, and can never admit 
 of the con ftruc"liort which has been attempted to 
 be put upon it, as if the Company's debts could 
 never exceed the fum of money fubfcribed to 
 Government. By the words principal or ca- 
 pital flock or flocks undivided, is plainly here 
 to be underflood. the total funds and effects of 
 the Company, which are in fad the capital 
 upon which the Company does trade ; and there 
 would be the greatefl abiurdity in fuppofing, 
 that in a cafe where the Company had in its 
 warehoufes goods and erFefts to the value of 
 three times its debts, the debtors of the Com- 
 pany could have an action againft the receivers 
 of dividends, under pretence that the fum total 
 of the Company's debts exceeded the lum total 
 of the capital ftock fubfcribed to Government, 
 at a time when the Company's total goods and 
 effecls might, as at prell-nt, exceed its total 
 debts, in fuch a proportion as not only to pay 
 its whole debts, but alfo to repay its capital ad- 
 vanced, and leave five or fix millions over of 
 clear bailance to be divided amongft the pro- 
 prietors. 
 
 7 But
 
 [ 15 ] 
 
 But if the words, principal capital (lock or 
 flocks undivided, could in this claufe admit of 
 the confirmation which is put upon them, yet 
 certainly the words fum total of debts can in that 
 cafe be only underftood to mean the ballance- 
 of debts after deducing the fair value of the 
 Company's effects, other than its capital fub- 
 fcribed ; and if the debts are underftood in this 
 fenfe, viz. as the ballance of debts, there would 
 be no inconfiftency, that when the fum total 
 of the ballance of debts exceeds the capital 
 flock fubfqribed, that the receivers of dividends 
 mould be refpeclively anfwerable to pay the 
 debts in proportion to what they receive, but 
 unlefs the words, principal or capital flock or 
 flocks undivided, or the words, fum total of 
 debts are to be underftood in the fenfe here af- 
 fixed to them, the ftatute can not be explained 
 fo as to be agreeable to common fenfe or reafon. 
 
 o 
 
 By the a6l 6th Q^ Ann. c. 17. 2. it is pro- 
 vided, that for the better enabling the Eaft In- 
 dia Company to raife and pay the fum of 
 i, 200,000 /. advanced to the publick, the com- 
 mon feal of the Company (hall and may be 
 made Life of to borrow any fum or fums of 
 money, from time to time, upon account of 
 their united flock and funds, fa as the fum total 
 of all the principal monies which at any one 
 time mall be owing upon the fecurity of the faid 
 feal do not exceed i, 500,000 /. over and above 
 the monies which might lawfully be borrowed 
 thereupon before the making of this prefent aft. 
 
 If
 
 [ i6 3 
 
 If any obfcurity had in fad exifted Upon chef 
 footing of the former ads, this claufe of the" 
 ad 6 Q^ Ann is fufficient to clear it up, the 
 Company are no way retrained by the plain- 
 words and meaning of this laft claufe, as to- 
 the other book debts which they may owe not 
 tinder the common feal, becaufe debts under 
 the common feal are the only ones which could 
 interfere either with the Bank of England or 
 with Government loans. 
 
 By the ad ;th of George I. c. 5. p. 32. it is 
 enaded, that it mall and may be lawful for the 
 Eaft India Company to borrow or take up mo- 
 ney upon any contracts, bonds, &c. under their 
 common feal, for carrying on their trade, or 
 for lending money, by way of bottomry, fo as 
 by the monies already borrowed by them, and 
 by the monies which they fhall hereafter bor- 
 row purfuant to this ad, the whole fum which 
 they fhall owe at any one time do not exceed 
 the fum due at that time from the public to 
 the faid Company, or the fum of foe millions of 
 pounds fterling in the whole. 
 
 The plain meaning of this claufe is, thait the 
 Company fhall not owe, under their common feal, 
 at any one time, a greater fum than 5,000,000 /, 
 but it neither imports nor implies any reftric* 
 tion upon the Company with refped to the pur- 
 chafing goods- upon credit, or freights due to 
 fhips, or other book debts incurred in the com* 
 mon courle of trade without borrowing. 
 
 A cri-
 
 [ J7 ] 
 
 A criticifm has been made on this claufe, as 
 if the Company could not take the benefit of 
 borrowing to the amount of five millions under 
 this ftatnte, becaufe the firft part of the ftatute 
 recites a plan or fcheme which had been formed 
 for incorporating nine millions of the South Sea 
 capital ftock into the ftock of the Eaft India 
 Company, which fcheme never took effect, and 
 therefore it has been argued that the power of 
 borrowing given to the Eaft India Company 
 being a part of that fcheme, muft fall with it. 
 
 But the anfwer is very obvious : the power of 
 borrowing given to the Eaft India Company is 
 not granted under any condition whatever, but is 
 given in pofitive and direct words, to the amount 
 of five millions and the act does not proceed 
 upon the intention to incorporate the nine mil- 
 lions of South Sea ftock as a condition, but 
 only recites that as a proportion, and gives 
 leave to the feveral 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 mil- 
 lions, it is fully removed, not only by their 
 having in practice explained the act in the moft 
 extenfive manner, without challenge, but by 
 the fubfequent act 23 Geo. II. c. 22. 5 and 
 6. which plainly proceeds upon the fuppofition, 
 that the Company was at that time intitled to 
 borrow to the amount of fix millions, and al- 
 lows them to convert 4,200,000 /, as part of 
 their bonds into annuities. 
 
 D The
 
 The 33d feftion of the fame aft is a re- 
 petition almoft verbatim of the 75th fection 
 of the adt 9 and loth of king William, c. 
 44. by which, in order to prevent the Com- 
 pany from interfering with the Bank of Eng- 
 land, they are allowed to borrow on the credit 
 of their capital flock, provided the fum fo bor- 
 rowed fhall be laid out in goods to be exported 
 or other wife employed in their trade, or lent 
 on bottomry, and that iuch fums mall only be 
 borrowed under their common feal, and fhall 
 not be payable on demand but at fix months, 
 and that they fhall not difcount bills or notes, 
 or keep cam for other perfons. In this claufe 
 the words " ;'/ Jhall not be lawful" in place of 
 " it Jhall and may be lawful" are erroneoufly 
 copied from the printed claufe 75th of the aft 9 
 and loth of William, c. 44. 
 
 The act i7th Geo. II. c. 17. 8. gives the 
 Company fimply a power in order to raife the 
 fum of one million paid by them to Govern- 
 ment, of borrowing under their common feal to 
 the amount of one million more than they could 
 before lawfully borrow. 
 
 This feems to be a compleat view of the 
 whole fubfifling flatutes by which the Eaft In- 
 dia Company is reftrained from borrowing mo- 
 ney j and it muft appear evident, that by none 
 of them the Company, is prohibited from pur- 
 chafing goods upon credit, or incurring book 
 debts, and therefore the'great clamour which has 
 been raifed, as if the Company had acted con- 
 trary to law, or in an inexpedient or improper 
 4 man-
 
 [ '9 1 
 
 manner, by incurring the book debts which it 
 prefently owes, over and above its bonds and an- 
 nuities, muft appear totally groundlefs andabfurd. 
 
 It further appears, that the Company's affairs 
 are now in fuch a fituation, that every one of 
 thefe debts will be paid offin a very few months, 
 and that the 40,000 /. of additional dividend, / 
 voted to take place at Chriftmas next, will in ^ 
 no refpect retard the payment of thefe debts ; 
 and that the Company will be further poflefled, 
 when the mips of this feafon mall have arrived, 
 of effects equal to the payment of almoft the 
 whole of their bond debts, which, however, , 
 there is no intention nor no occafion to pay off. 
 
 But fuppofmg the whole of the Company's 
 book debts could not be fo foon difcharged, 
 this can be no objection to the fmall additional 
 dividend of 40,000 /. confidering the prefent 
 flourilhing ftate of the Company's affairs. The 
 creditors to whom the book debts are owing are 
 under no uneafinefs, nor do they complain of 
 the increafe of dividend, which it is now allowed 
 the Company are fully able to pay, and to con- 
 tinue that payment out of the profits of their 
 trade alone. 
 
 Every merchant, when he regulates the fum 
 to be beftowed by him upon his fubfiftence, or 
 the annual expence of his family, confiders, 
 /r/?, what is the total amount of his effects, 
 compared with his debts ; and fecondly, what 
 is the amount of his annual profits , and if he 
 finds that he has a confiderable fortune over and 
 D 2 above
 
 above his debts, and that his annual profits are 
 alfo confiderable ; he freely refolves, and with 
 great propriety, to beftow a mare of his annual 
 profits upon the fupport and expence of his fa- 
 mily -, and it never can enter into his delibera- 
 tion, in fixing what that annual expence jfhall 
 be, whether or not at every particular period of 
 the year, he is fure of having a balance of cam. 
 in his banker's hand ; becaufe, if his total ex- 
 pence is properly regulated, fo as not to exceed 
 what he can really afford, he knows the goods 
 he is poffeffed of, muft always be able to com- 
 mand cafh fufficient for his temporary occafions : 
 and indeed, if this rule were erroneous, there 
 are many merchants in London poflefTed of for- 
 tunes to the amount of 1 50,000 /. and their an- 
 nual profits two or three thoufands, who could 
 not afford 50 1. a year for their ufualfubfii'.ance. 
 If they were to be reftrifted in the manner now 
 propofed for the India Company, they could not 
 purchafe a dinner and pay their debts j their 
 effects probably in America or the Weft 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 fent abroad i 
 fo that, upon the footing of their banker's book, 
 after deducting all their debts due at home, they 
 might be obliged to fubfift upon air for feveral 
 years together. 
 
 The credit of a public company is much fu- 
 perior to that of private merchants ; thofe to 
 whom they owe the prices of goods, freights or 
 other b-jok -debts, are much more ready to in- 
 fiulge them with delays of payment than the cre- 
 ditors
 
 [ 21 ] 
 
 ditors of particular merchants. The India Com- 
 pany is under no embarrafment with refpect to 
 its creditors ; its only embarrafment is from the 
 choice it has unhappily made of a fet of Direc- 
 tors, who feem determined, if poflible, to ftab 
 the credit of the Company, and to try to what 
 degree of injuries and infults the patience of the 
 Proprietors will tamely fubmit. 
 
 The Proprietors have refolved to apply to 
 Parliament, by petition againft a bill now de- 
 pending, for refcinding the i\ per cent, addi- / 
 tional dividend, voted by the general court on 
 the 6th of May laft, in ftric~l conformity to the 
 powers granted by charter. The refpect due to 
 the Legiflature reftrains me from exprefTmg my 
 fentiments with regard to this retrofpective law 
 relating to private property and public credit. 
 If any thing is interelting in this happy confti- 
 tution, thefe points certainly are. The que- 
 ftions concerning general warrants, and difpenf- 
 ing powers, were, in refpect of thefe, of very 
 inferior importance. It is the duty of every 
 Britiih fubject to fubmit with reverence and ve- 
 neration, to whatever obtains the fanction of the 
 three branches of the Legiflature; but when 
 any particular bill appears, to common appre- 
 henfion, to be of dangerous confequence, we 
 are entitled to hope and prefume that it never 
 will pafs into a law. 
 
 State 
 
 1554895
 
 [ 22 ] 
 
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 35
 
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