So far from being previously apprised of the transaction from its origin, it was two years before the Court of Directors obtained any official intelligence of it. "The dealings of the servants with the Nabob were concealed from the first, until they were found out" (says Mr. Sayer, the Company's counsel) "by the report of the country." The Presidency, however, at last thought proper to send an official account. On this the Directors tell them, "To your great reproach, it has been concealed from us. We cannot but suspect this debt to have had its weight in your proposed aggrandizement of Mahomed Ali [the Nabob of Arcot]; but whether it has or has not, certain it is you are guilty of an high breach of duty in concealing it from us."

These expressions, concerning the ground of the transaction, its effect, and its clandestine nature, are in the letters bearing date March 17, 1769. After receiving a more full account, on the 23d March, 1770, they state, that "Messrs. John Pybus, John Call, and James Bourchier, as trustees for themselves and others of the Nabob's private creditors, had proved a deed of assignment upon the Nabob and his son of FIFTEEN districts of the Nabob's country, the revenues of which yielded, in time of peace, eight lacs of pagodas [320,000l. sterling] annually; and likewise an assignment of the yearly tribute paid the Nabob from the Rajah of Tanjore, amounting to four lacs of rupees [40,000l.]." The territorial revenue at that time possessed by these gentlemen, without the knowledge or consent of their masters, amounted to three hundred and sixty thousand pounds sterling annually. They were making rapid strides to the entire possession of the country, when the Directors, whom the

right honorable gentleman states as having authorized these proceedings, were kept in such profound ignorance of this royal acquisition of territorial revenue by their servants, that in the same letter they say, "This assignment was obtained by three of the members of your board in January, 1767, yet we do not find the least trace of it upon your Consultations until August, 1768, nor do any of your letters to us afford any information relative to such transactions till the 1st of November, 1768. By your last letters of the 8th of May, 1769, you bring the whole proceedings to light in one view."

As to the previous knowledge of the Company, and its sanction to the debts, you see that this assertion of that knowledge is utterly unfounded. But did the Directors approve of it, and ratify the transaction, when it was known? The very reverse. On the same 3d of March, the Directors declare, "upon an impartial examination of the whole conduct of our late Governor and Council of Fort George [Madras], and on the fullest consideration, that the said Governor and Council have, in notorious violation of the trust reposed in them, manifestly preferred the interest of private individuals to that of the Company, in permitting the assignment of the revenues of certain valuable districts, to a very large amount, from the Nabob to individuals"; and then, highly aggravating their crimes, they add,-" We order and direct that you do examine, in the most impartial manner, all the abovementioned transactions, and that you punish, by suspension, degradation, dismission, or otherwise, as to you shall seem meet, all and every such servant or servants of the Company who may by you be found guilty of any of the above offences." "We had" (say

the Directors) "the mortification to find that the servants of the Company, who had been raised, supported, and owed their present opulence to the advantages gained in such service, have in this instance most unfaithfully betrayed their trust, abandoned the Company's interest, and prostituted its influence to accomplish the purposes of individuals, whilst the interest of the Company is almost wholly neglected, and payment to us rendered extremely precarious." Here, then, is the rock of approbation of the Court of Directors, on which the right honorable gentleman says this debt was founded. Any member, Mr. Speaker, who should come into the House, on my reading this sentence of condemnation of the Court of Directors against their unfaithful servants, might well imagine that he had heard an harsh, severe, unqualified invective against the present ministerial Board of Control. So exactly do the proceedings of the patrons of this abuse tally with those of the actors in it, that the expressions used in the condemnation of the one may serve for the reprobation of the other, without the change of a word.

To read you all the expressions of wrath and indignation fulminated in this dispatch against the meritorious creditors of the right honorable gentleman, who according to him have been so fully approved by the Company, would be to read the whole.

The right honorable gentleman, with an address peculiar to himself, every now and then slides in the Presidency of Madras, as synonymous to the Company. That the Presidency did approve the debt is certain. But the right honorable gentleman, as prudent in suppressing as skilful in bringing forward his matter, has not chosen to tell you that the Presidency were

the very persons guilty of contracting this loan,creditors themselves, and agents and trustees for all the other creditors. For this the Court of Directors accuse them of breach of trust; and for this the right honorable gentleman considers them as perfectly good authority for those claims. It is pleasant to hear a gentleman of the law quote the approbation of creditors as an authority for their own debt.

How they came to contract the debt to themselves, how they came to act as agents for those whom they ought to have controlled, is for your inquiry. The policy of this debt was announced to the Court of Di rectors by the very persons concerned in creating it. "Till very lately," say the Presidency, "the Nabob placed his dependence on the Company. Now he has been taught by ill advisers that an interest out of doors may stand him in good stead. He has been made to believe that his private creditors have power and interest to overrule the Court of Directors.” * The Nabob was not misinformed. The private creditors instantly qualified a vast number of votes; and having made themselves masters of the Court of Proprietors, as well as extending a powerful cabal in other places as important, they so completely overturned the authority of the Court of Directors at home and abroad, that this poor, baffled government was soon obliged to lower its tone. It was glad to be admitted into partnership with its own servants. The

* For the threats of the creditors, and total subversion of the authority of the Company in favor of the Nabob's power and the increase thereby of his evil dispositions, and the great derangement of all public concerns, see Select Committee Fort St. George's letters, 21st November, 1769, and January 31st, 1770; September 11, 1772; and Governor Bourchier's letters to the Nabob of Arcot, 21st November, 1769, and December 9th, 1769.

Court of Directors, establishing the debt which they had reprobated as a breach of trust, and which was planned for the subversion of their authority, settled its payments on a par with those of the public; and even so were not able to obtain peace, or even equality in their demands. All the consequences lay in a regular and irresistible train. By employing their influence for the recovery of this debt, their orders, issued in the same breath, against creating new debts, only animated the strong desires of their servants to this prohibited prolific sport, and it soon produced a swarm of sons and daughters, not in the least degenerated from the virtue of their parents.

From that moment the authority of the Court of Directors expired in the Carnatic, and everywhere else. "Every man," says the Presidency, "who op poses the government and its measures, finds an immediate countenance from the Nabob; even our discarded officers, however unworthy, are received into the Nabob's service." It was, indeed, a matter of no wonderful sagacity to determine whether the Court of Directors, with their miserable salaries to their servants, of four or five hundred pounds a year, or the distributor of millions, was most likely to be obeyed. It was an invention beyond the imagination of all the speculatists of our speculating age, to see a government quietly settled in one and the same town, composed of two distinct members: one to pay

"He [the Nabob] is in a great degree the cause of our present inability, by diverting the revenues of the Carnatic through private channels." "Even this peshcush [the Tanjore tribute], circumstanced as he and we are, he has assigned over to others, who now set themselves in opposition to the Company." - Consultations, October 11, 1769, cn the 12th communicated to the Nabob.