Extract of a Letter from the Commissioners for the Affairs of India, to the Court of Directors, dated 3rd November, 1784, in Answer to their Remonstrance . Sixth Article

We think it proper, considering the particular nature of the subject, to state to you the following remarks on that part of your representation which relates to the plan for the discharging of the Nabob's debts.

1st. You compute the revenue which the Carnatic may be expected to produce only at twenty lacs of pagodas. If we concurred with you in this opinion, we should certainly feel our hopes of advantage to all the parties from this arrangement considerably diminished. But we trust that we are not too sanguine on this head, when we place the greatest reliance on the estimate transmitted to you by your President of Fort St. George, having there the best means of information upon the fact, and stating it with a particular view to the subject matter of these paragraphs. Some allowance, we are sensible, must be made for the difference of collection in the Nabob's hands, but, we trust, not such as to reduce the receipt nearly to what you suppose.

2ndly. In making up the amount of the private debts, you take in compound interest at the different rates specified in our paragraph. This it was not our intention to allow; and lest any misconception should arise on the spot, we have added an express direction that the debts be made up with simple interest only, from the time of their respective consolidation. Clause F f.

3rdly. We have also the strongest grounds to believe that the debts will be in other respects considerably less than they are now computed by you; and consequently, the Company's annual proportion of the twelve lacs will be larger than it appears on your estimate. But even on your own statement of it, if we add to the 150,000l., or 3,75,000 pagodas, (which you take as the annual proportion to be received by the Company for five years to the end of 1789,) the annual amount of the Tanjore peshcush for the same period, and the arrears on the peshcush, (proposed by Lord Macartney to be received in three years,) the whole will make a sum not falling very short of pagodas 35,00,000, the amount of pagodas 7,00,000 per annum for the same period. And if we carry our calculations farther, it will appear, that, both by the plan proposed by the Nabob and adopted in your paragraphs, and by that which we transmitted to you, the debt from the Nabob, if taken at 3,000,000l., will be discharged nearly at the same period, viz., in the course of the eleventh year. We cannot, therefore, be of opinion that there is the smallest ground for objecting to this arrangement, as injurious to the interests of the Company, even if the measure were to be considered on the mere ground of expediency, and with a view only to the wisdom of reëstablishing credit and circulation in a commercial settlement, without any consideration of those motives of attention to the feelings and honor of the Nabob, of humanity to individuals, and of justice to persons in your service and living under your protection, which have actuated the legislature, and which afford not only justifiable, but commendable grounds for your conduct.

Impressed with this conviction, we have not made any alteration in the general outlines of the arrangement which we had before transmitted to you. But, as the amount of the Nabob's revenue is matter of uncertain conjecture, and as it does not appear just to us that any deficiency should fall wholly on any one class of these debts, we have added a direction to your government of Fort St. George, that, if, notwithstanding the provisions contained in our former paragraphs, any deficiency should arise, the payments of what shall be received shall be made in the same proportion which would have obtained in the division of the whole twelve lacs, had they been paid.