and to which all others must be made subservient. The restrictions now in force, both with respect to persons coming to and residing in India, appear in the highest degree salutary and proper. Merchants procure all the goods they want from the places of their manufacture in the interior of the country, either through the Company's servants, or by licensed traders residing there, or through the medium of native agents.

"In this regulated way all British subjects (under no prohibition) may participate in the trade; and whatever may be the speculative fancies of some men upon a more unrestrained order of things, dissatisfaction is rarely expressed with that which now prevails. No change therefore, in this respect, seems to be either desired or required.

"We never hear of difficulty in procuring goods, but complaints are frequent of the want of proper conveyance for them to England after they are provided. This is certainly a grievance of no small moment to the merchant who wishes to act an honest part, and to conform to established regulations. With money in his hands, and with a desire to speculate in the purchase of goods for the English market, he is afraid to lay his money out, because either he may be disappointed in getting tonnage for the conveyance of it at all, or he may in the customary distribution of law tonnage amongst the several claimants, obtain only part of what he wants; or supposing him to be successful as to quantity, the rate of freight required by the Company may be so high as to preclude all expectation of profit (the only incentive to speculation), by the consignment of the description of goods he may wish to send. If

he trades at all, therefore, he must do it to evident disadvantage, with this additional mortification, to see foreigners dealing in the same articles, and able, from the advantages they possess, to overbid him in the market here, and undersell him in that of Europe.

"Of the 3,000 tons allotted by law for the annual conveyance of the goods of individuals from all parts of India to England, the other presidencies have rarely applied for their proportions; and the whole tonnage has, with the exception of one year, been inadequate to the supply of Bengal alone.

"The tonnage which has been occupied with Bengal private goods since the Act of Parliament of 1793 has had effect here, is as follows:

In 1794-5-2,473 tons; 1795-6—5,346 do. ; 1796-7-4,659 do.; 1797-8-3,787 do.; 1798-96,223 do.; 1799-1800-7,748 do.

"Through the liberality of your Lordship in granting a facility to the trade in 1798-9 by permitting ships to be hired by the Company, and afterwards relet to their owners, they settling with the shippers of goods for cargo and freight, the accommodation and the satisfaction to both parties were very great. Though this indulgence was discontinued last season, yet the amount of tonnage applied for by individuals was granted to the extent of the shipping which could be hired for the purpose. The tonnage occupied in 1798-9 exceeds that of the four preceding years, and 1799-1800 exhibits a further considerable increase. I have understood that the merchants adventured more largely last year in the purchase of goods for Europe, under the idea that the facilities of 1798 would have

been continued to them. By being permitted to make their own terms with the shippers of goods, the shipowners are enabled perfectly to assort their cargoes, to fill their ships in the most advantageous manner and at the most convenient times. They are freed from the loss which they are subject to under the present system from the delay which occurs in the payment of their freight and the settlement of their accounts in England by the Company (of which they complain heavily), and thus they can afford to provide tonnage on terms more reasonable than at present. By this mode the merchant also, besides the advantage of a lower rate of freight, derives another substantial benefit in the employment of his capital. He has it in his power to make his engagement with the ship-owner before he begins the purchase of his goods; he can buy those only which it will answer for him to speculate in, at the ascertained rates of freight, and he suits the amount of his provision exactly to the carriage he has secured for it.

"Whatever be the expediency of keeping up the Company's regular shipping on their present respectable and expensive footing, it can answer only for the conveyance of the Company's own valuable goods, of the finer sorts of indigo, and of some other valuable commodities of individuals; the rates of freight chargeable thereon are too extravagant to be borne by sugar of the Company's investment, or by the gruff goods commonly provided by individuals. The extra shipping hired in England and sent out by the Company for the purpose of supplying the two last-mentioned demands, is at a rate beyond what the most extensive exports from Bengal, viz. sugar and saltpetre, will reasonably bear.

"It is in vain to expect that Great Britain should become the emporium of the trade of Asia until a very considerable reduction be effected in the price of freight between India and the mother-country, and a blow be given by this means to the trade of foreigners.

"It is by the employment of Indian-built shipping that this desirable reduction can be effected. The proposition of Mr. Dundas, therefore, that this description of shipping shall be employed exclusively for carrying the goods of individuals from India to England, is a most wise, and, connected with the consideration of the trade of foreigners, a necessary measure.

"It would open a prospect every way exhilarating ; of increased prosperity to the country by the extension of its powers of produce and manufacture, and by opening new and unexplored sources of commerce; of increased benefit to the merchant by unloosing his hands and giving a scope for the fullest exertion of his capacities; and of increased wealth to the nation, by promoting a more valuable importation into it, and reducing the foreign trade with India within its natural and proper bounds.

"That the shipping of India would be adequate to the demand for it, there can be no doubt. At this moment there are above 10,000 tons of shipping tendered and at command in Bengal, after two ships have been recently provided with cargoes to the amount of 1,500 tons; timber proper for ship-building here and in the vicinity abounds; the art has arrived in Bengal at a high pitch, a great number of artificers are constantly employed, and no sooner is a ship launched than the foundation of another is laid in her room. Spacious

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and convenient docks for repairing ships are also erectedAlmost every article necessary for ship-building, except the timber, would come from England,-namely, iron, copper, nails, bolts, &c., or with canvas, guns, &c. for equipment, the value of which here is said to constitute full two-fifths of the cost of a ship when fitted for sea. This particular branch of the manufactures of England would consequently be more largely encouraged by the extension of ship-building in India; and that the manufactures of Great Britain in general would obtain a greater vent, when, by a reduction of freight, they could be exported to India, and sold there on cheaper terms, there is just reason to suppose.

"There appears to be only one class of men who can, with any propriety, express dissatisfaction at such an employment as that under consideration, of India-built shipping, and they are the ship-builders of Great Britain. It seems, however, very doubtful, whether even they would suffer in the end, as, from the far greater number of such ships which would resort to England than that now furnished by it for this trade, the expense for repairs which they would require to be laid out upon them there, might be expected, if not to equal, to fall little short of the original outlay of construction of the British shipping.

"It is understood that the employment of Indianbuilt shipping should be confined strictly between Great Britain and India. One instance has occurred lately of a ship of this description, the Anna, having made a voyage from England to the West Indies and back again; other similar instances, which have not come to my knowledge, may have occurred.