The Works of the Right Honourable Edmund Burke, Vol. 03 · Edmund Burke
NABOB OF ARCOT'S DEBTS.
Mr. George Smith being asked, Whether the debts of the Nabob of Arcot have increased since he knew Madras? he said, Yes, they have. He distinguishes his debts into two sorts: those contracted before the year 1766, and those contracted from that year to the year in which he left Madras.--Being asked, What he thinks is the original amount of the old debts? he said, Between twenty-three and twenty-four lacs of pagodas, as well as he can recollect.--Being asked, What was the amount of that debt when he left Madras? he said, Between four and five lacs of pagodas, as he understood.--Being asked, What was the amount of the new debt when he left Madras? he said, In November, 1777, that debt amounted, according to the Nabob's own account, and published at Chepauk, his place of residence, to sixty lacs of pagodas, independent of the old debt, on which debt of sixty lacs of pagodas the Nabob did agree to pay an interest of twelve per cent per annum.--Being asked, Whether this debt was approved of by the Court of Directors? he said, He does not know it was.--Being asked, Whether the old debt was recognized by the Court of Directors? he said, Yes, it has been; and the Court of Directors have sent out repeated orders to the President and Council of Madras to enforce its recovery and payment.--Being asked, If the interest upon the new debt is punctually paid? he said, It was not during his residence at Madras, from 1777 to 1779, in which period he thinks no more than five per cent interest was paid, in different dividends of two and one per cent.--Being asked, What is the usual course taken by the Nabob concerning the arrears of interest? he said, Not having ever lent him moneys himself, he cannot fully answer as to the mode of settling the interest with him.
Mr. Smith being asked, Whether, in the course of trade, he ever sold anything to the Nabob of Arcot? he said, In the year 1775 he did sell to the Nabob of Arcot pearls to the amount of 32,500 pagodas, for which the Nabob gave him an order or tankah on the country of Tanjore, payable in six months, without interest.--Being asked, Whether, at the time he asked the Nabob his price for the pearls, the Nabob beat down that price, as dealers commonly do? he said, No; so far from it, he offered him more than he asked by 1000 pagodas, and which he rejected.--Being asked, Whether, in settling a transaction of discount with the Nabob's agent, he was not offered a greater discount than 12_l._ per cent? he said, In discounting a soucar's bill for 180,000 pagodas, the Nabob's agent did offer him a discount of twenty-four per cent per annum, saving that it was the usual rate of discount paid by the Nabob; but which he would not accept of, thinking himself confined by the act of Parliament limiting the interest of moneys to twelve per cent, and accordingly he discounted the bill at twelve per cent per annum only.--Being asked, Whether he does not think those offers were made him because the Nabob thought he was a person of some consequence in the settlement? he said, Being only a private merchant, he apprehends that the offer was made to him more from its being a general practice than from any opinion of his importance. * * * * * No. 3. Referred to from p. 38. _A Bill for the Better Government of the Territorial Possessions and Dependencies in India_.
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