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.