The History of Java, v. 1-2

by Sir Thomas Stamford Raffles

The Commissioners, however, being of opinion, that the affairs of the Company were not irretrievable, recommended a further loan of seven millions of florins.

A meritorious servant of the Company, Mr. C. Tetsingh, had offered to the Commissioners a memorial, in which he proposed that the Company should abandon the trade to private merchants under certain restrictions; but on this proposal the Commissioners stated that they were not then prepared to offer an opinion.

This Commission, in reporting upon the manner in which the Company's affairs had been managed in India, declared that "they could not conceal the deep impression which the same had made upon their minds, and that they could not fix their thoughts upon it, without being affected with sentiments of horror and detestation...." "When," said they, "we take a view of our chief possession and establishment, and when we attend to the real situation of the internal trade of India, the still increasing and exorbitant rate of the expenses, the incessant want of cash, the mass of paper money in circulation, the unrestrained peculations and faithlessness of many of the Company's servants, the consequent clandestine trade of foreign nations, the perfidy of the native princes, the weakness and connivance of the Indian government, the excessive expenses in the military department and for the public defence; in a word, when we take a view of all this collectively, we should almost despair of being able to fulfil our task, if some persons of great talents and ability among the directors had not stepped forward to devise means by which, if not to eradicate, at least to stop the further progress of corruption, and to prevent the total ruin of the Company."

The improvements proposed by the directors extended to every branch of the administration abroad. They proposed, first, with regard to the Cape of Good Hope, the yearly arrears of which settlement had latterly amounted to a million and a half of florins, that the same should be reduced to one half of that sum. With regard to the further eastern possessions, the measures proposed for consideration were chiefly the following.

To confine the Company's future trade to opium, spices, pepper, Japan copper, tin, and sugar, as far as the European and Japan markets would require. To abandon the trade to Western India to the Company's servants and free merchants, under payment of a certain recognition. To abandon several factories in that quarter, and to reduce the rest to mere residencies. To make considerable reductions in the establishment on the coast of Malabar and in Bengal. To reduce the establishments on the coast of Coromandel to three factories. To abandon the establishments on the West coast of Sumatra, and to leave it open to a free trade. To diminish the expenses at Ceylon by a reduction of the military force, and by every other possible means to animate the cultivation and importation of rice into that settlement. To open a free trade and navigation to Bengal and Coromandel, under the superintendence of the Company, on paying a certain recognition. To encourage, by every means, the cultivation of rice in the easternmost possessions, and especially at Amboina and Banda, for the sake of preventing the inducements of a clandestine trade, which the importation of rice to those places might afford. To abandon several small factories to the eastward. To adopt a plan for the trade of Malacca proposed by Governor De Bruem. To introduce a general reduction of establishment at Batavia and elsewhere. To introduce new regulations with regard to the sale of opium at Batavia. To improve the Company's revenue, by a tax upon salaries and a duty upon collateral successions. And finally, to send out commissioners to India, with full powers to introduce a general reform in the administration.

In a memorial subsequently submitted by the Commissioners, which formed the basis of all the measures recommended and adopted at this time, for the better administration of affairs in India, after shewing that, from the year 1770 to 1780, the Company had on the whole of its trade and establishments on the coast of Coromandel, Bengal, Malabar, Surat, and the western coast of Sumatra, averaged a profit of only 119,554 florins a year, they recommended the introduction at Batavia of a public sale of the spices, Japan copper, and sugar, wanted for the consumption of Western India, and the establishment of a recognition of ten per cent. on the piece goods from Bengal, and of fifteen per cent. on the piece goods from Coromandel. Under such a plan of free trade, they calculated that, after the diminution of the Company's establishments in Western India, and the abolition of several small forts and factories to the eastward, it was highly probable that the administration in India would, in future, cover its own expenses, and thereby save the Company from utter ruin.

It was on these calculations that the Commissioners appointed by the States of Holland founded their hopes of the future relief of the Company, and with these prospects they closed their report, the care and future fate of the Company devolving from that time chiefly on the Commissioners appointed at their recommendation to proceed to India, in order to carry into effect, on the spot, the reforms proposed. Of these new Commissioners, Mr. Nederburg, then first advocate to the Company, was appointed the chief.

The Indian Commissioners sailed from Europe in the year 1791. At the Cape of Good Hope they made such changes and reforms as may be said to have fully effected the object of their commission. The importance, however, of the Cape being comparatively small, it is not necessary to enter into any detail of the measures adopted there. The more momentous part of their trust was undoubtedly to be discharged in India, where they arrived in 1793.

If the talents of these Commissioners were to be estimated by the benefits which resulted from their labours, we may safely pronounce them to have been incompetent to the task they had undertaken; but such a criterion cannot with any justice be applied. A continuance of peace with Great Britain was of course reckoned upon in all their calculations, and war with that power broke out almost immediately afterwards.

With regard to the abandonment of several forts and factories to the eastward, to which their attention had been particularly directed, the result of their deliberation and inquiry was, that the continuance of the Company's establishment on Celebes was indispensable for the protection of the Moluccas; that at Timor reductions had been made, in consequence of which the revenues covered the expenses; that after mature investigation the Japan trade was shewn to yield a nett profit of 200,000 florins; that with regard to the West Coast of Sumatra the revenues had been made to exceed the expenses, and the pepper collected in that neighbourhood left still some profit to the Company.