And on the 4th of March, 1778, it was resolved by our President
and Council of Fort St George, that the consolidated debt of 1777 was
not, on any respect whatever, conducted under the auspices or protection
of that government; and on the circumstance of the consolidation of the
said debt being made known to us, we did, on the 23rd of December, 1778,
write to you in the following terms: "Your account of the Nabob's
private debts is very alarming; but from whatever cause or causes those
debts have been contracted or increased, we hereby repeat our orders,
that the sanction of the Company be on no account given to any kind of
security for the payment or liquidation of any part thereof, (except by
the express authority of the Court of Directors,) on any account or
pretence whatever."
The loan of 1777, therefore, has no sanction or authority from us; and
in considering the situation and circumstances of this loan, we cannot
omit to observe, that the creditors could not be ignorant how greatly
the affairs of the Nabob were at that time deranged, and that his debt
to the Company was then very considerable,--the payment of which the
parties took the most effectual means to postpone, by procuring an
assignment of such specific revenues for the discharge of their own
debts as alone could have enabled the Nabob to have discharged that of
the Company.
Pages:
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210