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Vol. 6 · pages 21–25

The Evolution of Provincial Finance in British India; The Problem of the Rupee; other economic writings

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I W ITHOUT going into the historical development of it, the administration of the East India Company may be conveniently described as follows : I. The Court of Proprietors It was “composed of the shareholders of the East India stock to a certain amount, who elect from their own body by ballot a certain number of representatives (twenty-four) to whom the proprietory confide the planning and carrying into effect whatever measures may be deemed most conducive to the interests of India and England, reserving to themselves a surveillance and limited control over the proceedings of the delegated authority.” The requirements of a seat and a vote in this Court were as follows : A proprietor of £ 500 stock was entitled to a seat in this Court. A proprietor of £ 1,000 stock was entitled to one vote. A proprietor of £ 3,000 stock was entitled to two votes. A proprietor of £ 6,000 stock was entitled to three votes. A proprietor from £ 10,000 to £ 1,00,000 and upward stock was entitled to four votes. Besides this, the stock must have been held for at least one year before voting. There was no voting by proxy and minors were ruled as incapable of voting. The voters counted Lords, Commoners, women, clergy, and officers civil and military, both of the king and the company. The sessions of the Court were quarterly—March, June, September, December. Nine qualified proprietors were quite sufficient to ask for a special session of the Court. The speaker was ex-officio the chairman who presided at the session, brought forward all motions requiring the sanction of the Court, and laid before the members the accounts of the Company’s transactions. The Court was authorized— (1) To elect qualified persons to constitute what is known as the Court of Directors. (2) To declare the dividends on the capital stock of the company within certain parliamentary restrictions.

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8 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES (3) To frame, alter, or repeal such of the by-laws as hinder the good government of the East India Company, provided they do not conflict with the Acts of Parliament. (4) To control in general any increase in a salary or pension above £ 200 a year, or over any gratuity beyond £600. (5) To confer pecuniary reward for good service. II. The Court of Directors It consisted of twenty-four members. The Directors were elected by such of the Proprietors as were qualified for a vote. The qualification of a candidate for the Court of Directors were : (1) He must be a natural, or naturalized subject of Great Britain. (2) He must possess £ 2,000 stock (no matter for what previous period). (3) He must not be a director of the Bank of England or the South Sea Company. (4) He must be a resident of England for two years after holding office in the Court. (5) He must not have held any maritime office in the Service of the Company for two years previous to his proposed election. (6) He must not have under any plea or pretence whatsoever, endeavored to obtain, directly or indirectly, a vote for the election of himself or any other person to be a Director. (7) He must take an oath (a) not to carry on any private trade. (b) not to have any dealing with the company except as a private individual. (c) not to hold any place or office of emolument under the Crown. In order to fulfill the various duties, the work was assigned to several Committees into which the Court was sub-divided. They were: 1. Secret Committee 8. buying committee 2. Correspondence Committee 9. Warehouses Committee 3. Treasury Committee 10. India House Committee 4. Govt. Troops and Stores Committee 11. Shipping Committee 5. Legal Proceedings Committee 12. Private Trade Committee 6. Military Proceedings Committee 13. Civil College 7. Accounts Committee 14. Military College

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9ADMINISTRATION AND FINANCE OF THE EAST INDIA COMPANY All appointments such as writers, cadets, and assistant surgeons etc. were made by the Directors. The Civil and Military Services were recruited from the graduates of the two colleges which were merely a burden on the revenues of the Company. III. The Board of Commissioners for the Affairs of India (The Board of Control). The powers of the Board are : (1) “The superintendence and control over all the British territorial possessions in the East Indies, and over the affairs of the United Company of merchants trading thereto.” (2) “To superintend, direct and control all acts, operations, and concerns, which in any wise relate to the civil or military government or revenues of the British territorial possessions in the East Indies, in the manner hereinafter directed.” “All the members of the said Board, at all convenient times, have access to all palers and muniments of the said United Company, and are furnished with such extracts, or copies thereof, as they require. The Court of Directors are directed to deliver to the Board copies of all minutes, orders, resolutions, and other proceedings of all General or Special Courts of Proprietors of the Company, and of the Court of Directors, so far as relate to the civil or military government or revenues of the British territorial possessions in the East Indies, within eight days after the holding of such respective Courts; and also copies of ail despatches which the Directors receive from any of their servants in the East Indies, immediately after the arrival thereof; also copies of all letters, orders and instructions whatsoever, relating to the civil and military government or revenues of the British territorial possessions in the East Indies, proposed to be sent or despatched by the Court of Directors to any of the servants of the Company in the East Indies; the Court of Directors are required to pay due obedience to, and to be governed and bound by

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10 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES such orders and directions as they shall, from time to time, receive from the Board, touching the civil or military government and revenues of the British territorial possessions in the East Indies.” “Whenever the Court of Directors neglect to transmit to the Board their intended despatches on any subject, within fourteen days after requisition is made, it is lawful for the Board to prepare and send to the Directors (without waiting for the receipt of the copies of despatches intended to be sent by the said Court of Directors, as aforesaid), any orders or instructions to any of the governments or presidencies aforesaid, concerning the civil or military government of the British territories and possessions in the East Indies : and the Directors are required to transmit despatches, in the usual form (pursuant to the tenor of the said orders and instructions to be transmitted to them), to the respective governments and presidencies in India, unless on any representation made by the Directors to the Board, touching such orders or instructions, the Board shall direct any alteration to be made in the same, which directions the Court of Directors are bound to conform to.” The Board of Control was sub-divided into six departments to answer its functions : (1) Accounts, (2) Revenue, (3) Judicial, (4) Military, (5) Secret and Political, (6) Foreign and Public. The mode of local administration in India was as follows :— The country was divided into three presidencies namely, Bengal, Madras and Bombay, the seat of government being respectively at Fort William, Fort St. George, and Bombay itself. In the beginning the Supreme Local Administration of India was distributed among these three governments, each one enjoying coordinate status. With a view to centralization, the Supreme Local Administration of India was vested in the Governor of Fort William in Bengal, making the other two Governors subordinate to that of Bengal who was made the Governor-General of India.