bouring Princes. Stimulating their ambition, and fomenting their mutual animosities, they sold to them reciprocally their common servitude and ruin.

boyThe Governour-General, Mr. Hastings, and the Council, tell the Directors," that the supply for bff the Investment has arisen from casual and erstraordinary resources, which they could not expect always to command." In an earlier Minute he expresses himself still more distinctly; whe says, " If the internal resources of a State fail "it, or are not equal to its occasional wants, whence "can it obtain immediate relief but from external "means?" Indeed, the Investment has not been for any long time the natural product of the Revenue of Bengal: when by the vast charge, and by the ill return of an evil political and military traffick, and by a prodigal increase of establishments, and a profuse conduct in distributing agencies and contracts, they found themselves under difficulties, instead of being cured of their immoral and impolitick sdelusion, they plunged deeper into it, and were drawn from expedient to expedient for the supply of othe Investment into that endless chain of wars, which this House, by its resolutions, has so justly ¿condemned. At home these measures were sometimes countenanced, sometimes winked at, sometimes censured, but always with an acceptance of whatever profit they afforded goin

?

At length the funds for the Investment, and for these wars together, could no longer be supplied. In the year 1778, the provision for the Investment from the Revenues, and from the monopolies, stood very high. It was estimated at a million four hundred thousand pounds; and of this it appears that a great deal was realized. But this was the high flood-tide of the Investment; for in that year they announce its probable decline; and that such extensive supplies could not be continued. The advances to the Board of Trade became less punctual, and many disputes arose about the time of making them. However, knowing that all their credit at home depended on the Investment, or upon an opinion of its magnitude, whilst they repeat their warning of a probable deficiency, and that their

Finances bore an unfavourable, aspect," in the year 1779 they rate the Investment still higher. But their payments becoming less and less regular, and the war carrying away all the supplies, at length Mr. Hastings, in December 1780, denounced sentence of approaching dissolution to this system, and tells the Directors that "He bore too high a respect for their characters to treat them with the

management of a preparatory and gradual intro"duction to an unpleasing report. That it is the "only substantial information he shall have to

convey in that letter." In confidence therefore, of their fortitude, he tells them, without ceremony,

18

mony,

"that there will be a necessity of making a large reduction, or possibly a total suspension "of their Investment;-that they had already been "reduced to borrow near L. 700,000. This re"source (says he) cannot last; it must cease at a "certain period, and that perhaps not far distant.

He was not mistaken in his prognostick. Loans now becoming the regular resource for retrieving the Investment, whose ruin was inevitable, the Council enable the Board of Trade, in April 1781, to grant certificates for Government Bonds at eight per cent. interest for about £. 650,000. The Investment was fixed at £. 900,000. 3 20tha

But now another alarming system appeared. These new bonds overloaded the market: those, which had been formerly issued, were at a discount; the Board of Trade was obliged to advance, therefore, a fourth more than usual to the Contractors. This seemed to satisfy that description of dealers. But as those, who bought on agency, were limited to no terms of mutual advantage; and the bonds on the new issue falling from three to eight, nine, and ten per cent. discount, the agents were unable to furnish at the usual prices. Accordingly a discount was settled on such terms as could be made; the lowest discount, and that at two places only, was at four per cent.; which, with the interest on the bonds, made (besides the earlier advance) at the least twelve per cent. additional charge upon

all

all goods. It was evident, that as the Investment, instead of being supported by the Revenues, was sunk by the fall of their credit, so the net Revenues were diminished by the daily accumulation of an Interest accruing on account of the Investment. What was done to alleviate ore complaint thus aggravating the other, and at length proving pernicious to both, this trade on bonds likewise came to its period.

Your Committee has reason to think, that the bonds have since that time sunk to a discount much greater even than what is now stated. The Board of Trade justly denominates their resource for that year" the sinking credit of a paper currency, la

bouring, from the uncommon scarcity of species, under disadvantages scarcely surmountable." From this they value themselves "on having effected an ostensible provision, at least for that ** Investment." For 1783 nothing appears even ostensible.

By this failure a total revolution ensued of the most extraordinary nature, and to which Your Committee wish to call the particular attention of the House. For the Council-General, in their letter of the 8th of April 1782, after stating that they were disappointed in their expectations (how grounded it does not appear)," thought that they "should be able to spare a sum to the Board of "Trade"-they tell the Court of Directors" that

"they had adopted a new method of keeping up

the Investment by private subscribers for eighty "lacks of rupees, which will find cargoes for their

ships on the usual terms of privilege at the risk "of the individuals; and is to be repaid to them " according to the produce of the Sales in England.” And they tell the Directors, that "a copy of the "plan makes a number in their separate dispatches over land."

*

It is impossible, in reporting this revolution to the House, to avoid remarking with what fidelity Mr. Hastings and his Council have adhered to the mode of transmitting their accounts, which Your Committee found it necessary to mark and censure in their First Report. Its pernicious tendency is there fully set forth. They were peculiarly called on for a most accurate state of their affairs, in order to explain the necessity of having recourse to such a scheme, as well as for a full and correct account of the scheme itself. But they send only the above' short Minute by one dispatch over land, whilst the copy of the plan itself, on which the Directors must form their judgment, is sent separately in another dispatch over land, which has never arrived. A third dispatch, which also contained the plan, was sent by a sea-conveyance, and arrived late. The Directors have, for very obvious reasons, ordered, by a strict injunction, that they should send Duplicates of all their dispatches by every ship. The

"