During the deep, silent flow of this steady stream of wealth which set from India into Europe, it generally passed on with no adequate observation; but happening at some periods to meet rifts of rocks that checked its course, it grew more noisy and attracted more notice.  The pecuniary discussions caused by an accumulation of part of the fortunes of their servants in a debt from the Nabob of Arcot was the first thing which very particularly called for, and long engaged, the attention of the Court of Directors.  This debt amounted to eight hundred and eighty thousand pounds sterling, and was claimed, for the greater part, by English gentlemen residing at Madras.  This grand capital, settled at length by order at ten per cent, afforded an annuity of eighty-eight thousand pounds.[7]

Whilst the Directors were digesting their astonishment at this information, a memorial was presented to them from three gentlemen, informing them that their friends had lent, likewise, to merchants of Canton in China, a sum of not more than one million sterling.  In this memorial they called upon the Company for their assistance and interposition with the Chinese government for the recovery of the debt.  This sum lent to Chinese merchants was at twenty-four per cent, which would yield, if paid, an annuity of two hundred and forty thousand pounds.[8]

Perplexed as the Directors were with these demands, you may conceive, Sir, that they did not find themselves very much disembarrassed by being made acquainted that they must again exert their influence for a new reserve of the happy parsimony of their servants, collected into a second debt from the Nabob of Arcot, amounting to two millions four hundred thousand pounds, settled at an interest of twelve per cent.  This is known by the name of the Consolidation of 1777, as the former of the Nabob’s debts was by the title of the Consolidation of 1767.  To this was added, in a separate parcel, a little reserve, called the Cavalry Debt, of one hundred and sixty thousand pounds, at the same interest.  The whole of these four capitals, amounting to four millions four hundred and forty thousand pounds, produced at their several rates, annuities amounting to six hundred and twenty-three thousand pounds a year:  a good deal more than one third of the clear land-tax of England, at four shillings in the pound; a good deal more than double the whole annual dividend of the East India Company, the nominal masters to the proprietors in these funds.  Of this interest, three hundred and eighty-three thousand two hundred pounds a year stood chargeable on the public revenues of the Carnatic.