The loan of 1777, therefore, has no sanction or authority from us; and in considering the situation and circumstances of this loan, we cannot omit to observe, that the creditors could not be ignorant how greatly the affairs of the Nabob were at that time deranged, and that his debt to the Company was then very considerable,—­the payment of which the parties took the most effectual means to postpone, by procuring an assignment of such specific revenues for the discharge of their own debts as alone could have enabled the Nabob to have discharged that of the Company.

Under all these circumstances, we should be warranted to refuse our aid or protection in the recovery of this loan.  But when we consider the inexpediency of keeping the subject of the Nabob’s debts longer afloat than is absolutely necessary,—­when we consider how much the final conclusion of this business will tend to promote tranquillity, credit, and circulation of property in the Carnatic,—­and when we consider that the debtor concurs with the creditor in establishing the justice of those debts consolidated in 1777 into gross sums, for which bonds were given, liable to be transferred to persons different from the original creditors, and having no share or knowledge of the transactions in which the debts originated, and of course how little ground there is to expect any substantial good to result from an unlimited investigation into them, we have resolved so far to recognize the justice of those debts as to extend to them that protection which, upon more forcible grounds, we have seen cause to allow to the other two classes of debts.  But although we so far adopt the general presumption in their favor as to admit them to a participation in the manner hereafter directed, we do not mean to debar you from receiving any complaints against those debts of 1777, at the instance either of the Nabob himself, or of other creditors injured by their being so admitted, or by any other persons having a proper interest, or stating reasonable grounds of objection; and if any complaints are offered, we order that the grounds of all such be attentively examined by you, and be transmitted to us, together with the evidence adduced in support of them, for our final decision; and as we have before directed that the sum of twelve lacs of pagodas, to be received annually from the Nabob, should be paid into our treasury, it is our order that the same be distributed according to the following arrangement.

That the debt be made up in the following manner, viz.

The debt consolidated in 1767 to be made up to the end of the year 1784, with the current interest at ten per cent.

The Cavalry Loan to be made up to the same period, with the current interest at twelve per cent.

The debt consolidated in 1777 to be made up to the same period, with the current interest at twelve per cent, to November, 1781, and from thence with the current interest at six per cent.