Charter Act of 1813

Charter Act of 1813

The CharterAct of 1793 had renewed the Charter of the Company for 20 years. When the time for the renewal of the Charter arrived, there was a lot of agitation. The people strongly demanded the ending of the commercial monopoly of the company. They were determined to have a share in the trade with India. They pointed out four advantages which bring the abolition of monopoly, viz. (1) The extension of British commerce and industry, (2) The Prevention of the diversion of Indian trade to other countries of Europe or America, (3) The reduction in the cost of trade, especially in transportation and warehousing charges, and the cheapening of the Indian raw imports into Britain. Stalwarts like Warren Hastings, Malcolm and Munro defended the monopoly of the Company. Ultimately, the Charter Act of 1813 was passed after many changes and compromises.

Provisions of charter Act of 1813

1. The Act of 1813 renewed the Charter of the East India Company for 20 years. The Company was deprived of its monopoly trade with India, but she was to enjoy her monopoly of trade with China for 20 years. The Indian trade was thrown open to all British merchants, although they had to work under certain limitations. The Directors were to grant licences to those Englishmen who applied for permission to trade with India. Licences were also to be given to persons who wanted to come to India for the purpose of enlightening or reforming the Indians or for other lawful purposes. If the Directors refused to issue a licence, the Board of Control could be approached for the same purpose. The persons who tried to go to India without a licence were to be regarded as interlopers and were liable to punishment.

2. The Act laid down certain rules for the application of the Indian revenues. Maintenance of forces was to be the first charge on the revenue of the Company, payment of interest was the second charge, and the maintenance of the civil and commercial establishment was the third charge. Provision was also made for the reduction of the debt of the Company. The Company was required to keep its commercial and territorial accounts separately.

3. It was provided that not more than 29 thousand troops were to be maintained out of the revenues of the Company.

4. The Company was authorized to make laws, regulation and articles of war for the Indian troops. It was also authorized to provide for the holding of Court-Martial.

5. The power of superintendence and direction of the Board of Control were not only defined but also enlarged to a very great extent.

6. The local Government in India were empowered to impose taxes on persons and punish those who did not pay them. These powers were to be exercised by the local Government subject to the jurisdiction of the Supreme Court.

7. The Act provided for the religious learning and education of the people of India. A sum of Rs 1 lakh a year was to be set “apart and applied to the revival and to the improvement of literature and the encouragement of the learned natives of India and for the introduction and promotion of the knowledge of the sciences among the inhabitants of the British Territories in India.

8. The Act also made provision for the training of the civil and military servants of the Company. The College at Haileybury and military school at Adiscombe were to be maintained and brought under the authority of the Board of Control. The colleges at Calcutta and Madras were also to world according to the regulations of the Board of Control.

9. The Act provided for the appointment of a bishop and three arch-deacons for the religious welfare of the Europeans in India.

10. The Act made special provisions for the administration of justice in cases in which the Britishers and Indians were involved. Special penalties were provided for theft, forgery and coinage offences.

Milan Tomic

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