desirous of acquiring riches or reputation, was eager to hazard his life and fortunes, in the hope that he might rise to that eminence in another hemisphere, which was denied him in this. From this period the tide of commerce, no longer confined to the shores of Italy and Flanders, flowed into the ports of Spain and Portugal, and enriched those nations beyond the example of former ages. -It is remarkable that England, at present the most commercial nation in the world, should have been the last country that directed its attention to trade. Her numerous and almost perpetual wars, occupied her people for many centuries, and while the neighbouring nations had made several and important commercial adventures, so ignorant was England of her natural advantages, that the staple commodity of the kingdom was manufactured abroad. It were tedious and uninteresting to enumerate every state that owed its origin or importance to trade in this general view of its rise, declension, and revival, we have seen the smallest states, and even cities, formed by the plastic hand of commerce into extensive sovereigntics; and by thus having briefly surveyed its progress, we shall be the better able to judge of its more immediate, as well as more lasting effects.

:

Of the many and important consequences of commerce, none are more obvious, or felt more sensibly, than those that affect, and in some degree form the manners and disposition of a people. Industry and a love of freedom are among the most prominent features of the mercantile character; and in every country in which trade is cultivated, are seen to influence the conduct of the individual and the politics of the state. By commerce are men stimulated to the greatest exertions, their hopes animated, and industry encouraged by the sure confidence that their diligence will not be unrewarded, and that riches will ever obey the powerful attraction of enterprise and toil.-Thus trade expands the faculties, and awakens the interest of man, excites him to activity, stimulates invention, and invigorates labour. We shall no where find a more striking example of the beneficial effects of commerce, and of the fatal consequences of its decay, than in a state already mentioned. The Venetians, while supported by trade were rich, and the state powerful; but as commerce sunk, their power, their importance declined, the nation languished, and having feebly supported the dignity of independent sovereignty, has recently become a scene of anarchy and rapine, and has fallen an inglorious prey to the insolent rapacity of France. The condition indeed of those nations who have suffered their commerce to decay is truly pitiable: deprived of the sources that supplied articles of pleasure or luxury, they sink into corruption

and effeminacy, and groan under the pressure of all those ills

"That opulence departed leaves behind." The Spaniards, since they have been in possession of the rich mines of America, have neglected the domestic sources of wealth. Trade, industry and manufacture have been exchanged for idleness, pride, and emigration. They have consequently become dependent on other nations for many of the conveniencies, and some of the necessaries of life, and the country is become weak, poor, and depopulated. To this indeed, their form of government has in some measure contributed. for commerce is ever seen to flourish under mild and equal laws, but always fades and sickens in the arid soil of tyranny and oppression.-It is the happy object of commerce to enrich, at the same time, the individual and the country at large; the more the merchant acquires, the more is his country benefited. Trade then, is the great subject on which man may most profitably exercise his attention, and is the proper pursuit, and best support of an enlightened, powerful, and virtuous people. It has indeed been said, that luxury and corruption never fail to creep into commercial countries, and by poisoning the springs of national felicity, are more than a balance for all the benefits that a lucrative and extensive commerce can afford. It has been said also that people engaged in trade and manufacture are fraudulent, mercenary, and unfit for more noble employments; that their minds as well as their bodies become enfeebled and dispirited, and that they are incapable of those actions that have done honour to human nature, and exalted the dignity of man. But this objection has been unjustly urged; for though fraud may have entered into the breast of the trader of rude ages, and the petty retailer of our own, we may observe, that the merchant in an advanced state of commerce, is punctual, liberal, and generous; and the sedentary and peaceful occupation of the artificer and mechanic are surely preferable to the wandering and predatory life of the Tartar or the Arab.

We need not recur to foreign nations for proofs of the advantages of commerce; they are no where more conspicuous or more acknowledged than in our own. It is the happy and envied boast of this island, to retain the possession of a trade as lucrative as it is universal, and by means of that trade to surpass other nations in wealth, strength, and consequerce. And when we consider that this country, by no means the most considerable in extent or in the advantages of climate and fertility, is at present the most independent and powerful; that she alone carries on with steadiness, and supports with spirit and dignity, a war in which most other nations have either actually suffered, or are now me

It is satisfactory to observe, that notwithstanding the apprehensions under which this estimate was framed, that the effects of excessive dearth and famine would be materially felt in the revenues, the gross collections are found to exceed the estimate.

It is found, that for several years past the estimates of the land revenues have been exceeded by the actual collections.

Sale of opium, £45,561. The productiveness of this resource is greatly to be attributed to the present system of management, which enforces the most scrupulous attention to the quality of the article. The excess now exhibited is owing to the actual sale price having been greater than the estimated.

Deficit-Oude Subsidy and revenues of ceded provinces, £52,698. The deficiency is to be attributed, in the first place, to the failure of the monopoly of salt, which was proposed to be established on the same principle as in the Bengal provinces; and in the second place, to a most unfavourable season occasioning a failure in the harvests, which rendered considerable remissions absolutely necessary for the relief of the renters.

Sale of salt, £30,645. Notwithstanding the actual receipt has thus fallen short of the expectation, it is still the greatest amount ever realized from the salt sales, exceeding the last year £350,000, and the average of the last three years £570,000. The deficiency now shewn is intirely in the sale price: the quantity sold exceeded the estimate.

MADRAS.

The diminution of average receipt is to be regretted, and the more, as in the two last years a decrease appears in the realization of these revenues. No detailed account has been received, by which the defalcations, in any particular instance, can be precisely explained; but the advices state, that the seasons have been, for several years, remarkably unfavourable, from the extraordinary prevalence of drought.

farms and licences, £23,806.

The deficiency is in the customs and duties; imputable to a considerable decrease in the imports from Europe and China, also to the late arrival of the fleet, from which the customs could not be brought to account before the close of the official year.

a

An excess has occurred in the civil charges, £6,702, principally to be attributed to charge incurred in consequence of the fire which did considerable daniage at Bombay. It is to be observed, that the Bombay army, exclusive of the detachment in Guzerat, was merely in a state of preparation for active service in the latter months of 1802-3, whereas it was generally employed on field service during the whole of 1803-4; consequently the military expenses of that year were very much beyond those of the preceding. It appears that the charges in the last year were more by £413,671 of which £379,093, were in the military; the remainder, chiefly in the revenue department, for the expenses in the management of the newly acquired districts.

A considerable addition to the revenues for

1804-5, is reckoned upon from the territories which have come into the possession of the Company by treaty and conquest. The civil charges in general, from a variety of contingent circumstances, arising from the particu lar situation of affairs, are expected to be higher in this year than in the last.

BENCOOLEN, PINANG, &c. The measures taken to enforce the regular transmission of documents have not hitherto produced the desired effect. As a more sum mary mode of proceeding has been adopted, by which the conduct of the affairs of the residency is under special examination, it may be hoped, that at no distant period the actual state of them will, in common with the other branches of the concern, be brought under review, to the proper dates.

It appears that the plan established in 1785, and modified in 1793, for the remittance or transfer of Indian debt to England, has entirely ceased to operate. This plan being on a fixed rate of exchange, could not be expected to have effect any longer than whilst the rate so fixed should render it eligible to the public creditors to avail themselves of it. It may be added, that the institution of a Sinking Fund in 1798, and its subsequent operation, with the terms on which loans have been raised of late years, by which an option was left to the persons lending the money to be repaid in England at a more favourable rate of exchange, have now totally superseded the former mode of transfer. The amount redeemed by the Sinking Fund, in the year, was £557,615.

This must be admitted to be a very serious disappointment in the produce of an important branch of the resources; it is to be attributed principally to the small vent of piece goods in the year, arising from the necessity of deferring the sale which usually took place in February, to the month of March; likewise to the loss of the ship Prince of Wales with a valuable cargo, and the short supply of goods from Bengal. On teas, raw and organzine silk, also drugs, sugar, &c. the actual sales exceeded the estimated.

Receipt on sales, 1804-5, estimated at

£6,598,496

12,681,623

actually amounted to

5,730,133

2,666,984

Deduct Sinking Fund 2,800,000 14,452,343

Deducting this sum from the in

The detail of the assets shews, that the only article in which the balance has lessened in the year, is the cash and bills, only £18,914. An increase is exhibited on all the others: on stores to the amount of £273,627, from the great importation from Europe, and from immense purchases in India in consequence of the war. The supplies from Europe, in the season 1802-3, have considerably increased the import goods. The remains of export goods have increased £560,169. The addition to the debs owing to the Company is £429,527. The latter sum is in the various departments of the several presidencies, and is, with a small exception as to the increased

In order to meet the extensive demands of the year, it was requisite to have recourse to extraordinary funds. A loan was obtained from government out of the tea duties, to the amount of £500,000; the sum of 100,000 was borrowed from the Bank; and bonds, amounting to £411,975, having been paid. in upon the sales instead of cash (a circumstance which always occurs when the bonds bear a discount) an issue was made to the extent of £979,500, The effect of these several circumstances was; the funds of which the Company were able to avail themselves for the purposes of the year, were £7,622,337, exceeding the estimate in the amount already shewn. The gross actual expenditure of these funds on the immediate account of the Company was £7,600,381: ofthis amount, £4,173,409 was for a direct supply to the foreign concern, by payment of bills of exchange and consignment in gouds,

Deducting increase of assets from

the increase of debt, the deterioration in the whole concern in 1803-4 abroad, and 1804-5 at home, will be

But it will be necessary, in this place, to make some adjustments: for this purpose, add the amount received in India, and inserted in quick stocks from thence, 30th April, 1804; the value of exports from England, which was included in the cargoes afloat outwards, in the assets at home, viz. 583,299) Goods in export warehouses in India, 30th April, 1804, included in quick stock accounts and in assets

£339,194

626,918

906,112

The year 1802-3, which had been expect ed to afford the most favorable result, with regard to revenue and charge, and to produce a considerable sum for the liquidation of the existing debt, did in fact produce a surplus revenue to the amount of near a million sterling, including the sum paid to the commissioners of the Sinking Fund.

It is not requisite, in this place, to enter in to any detail of the political circumstances which occurred at the end of the year 1862, nor of the events which led to the extensive scale of military operations which took place at a subsequent period: it is only necessary to advert to them, for the purpose of remarking, that their effect has been to defeat the plan devised for the liquidation of debt, and to absorb the surplus revenue to that degree, that for 1803-4 it was only estimated to amount to £121,835. The actual accounts exhibit a much more unfavourable view, in stat ing a surplus charge of £1,779,884, including £140,436, for interest paid to commissioners of Sinking Fund, which sum being ropriated to the farther liquidation of debt cannot be considered as an available resource.

The variations between the estimated and actual charges for 1803-4, on the general re sult, is as follows:

The estimate calculated on a surplus revenue of - .

By the actual accounts a surplus charge has been shewn to the extent of Difference, in an unfavourable

view

£121,835

1,779,884

1,901,719

The aggregate of the actual revenues was less than estimated by 199,000, and of the charges more than estimated by £1,702,312, The deficiency of revenue arose partly in