Analyzing Statements on Wellesley's Administration

The question asks us to evaluate two statements related to the administration of Lord Wellesley, who served as the Governor-General of Bengal from 1798 to 1805. His tenure was marked by significant expansion of British power in India.

Statement 1: Army Expenditure under Wellesley

Statement 1 claims that in the six years of Wellesley's administration, the army accounted for 42.5 percent of the Company's total expenditure. Lord Wellesley's period was characterized by aggressive expansionist policies and frequent wars (such as the Fourth Anglo-Mysore War and the Second Anglo-Maratha War). These policies significantly increased the military expenditure of the East India Company.

Historical records indicate that military spending during Wellesley's term was indeed very high, often exceeding 50% and sometimes reaching up to 80-90% of the total revenues in certain years or regions heavily involved in conflict. While calculating an exact average percentage over six years can be complex and depend on specific accounting methods, the figure of 42.5% appears to be an underestimation given the extensive military campaigns undertaken during this period. The sheer scale of military operations and the maintenance of a large army for expansion made military expenditure the dominant component of the Company's finances.

Based on historical context where military costs soared under Wellesley's expansionism, the specific figure of 42.5 percent as the average for six years seems questionable and likely lower than the actual expenditure percentage.

Therefore, Statement 1 is likely incorrect.

Statement 2: Scope of Wellesley's Administrative Measures

Statement 2 asserts that Wellesley's administrative measures were restricted only to the affairs of the Company and had nothing to do with the commercial and military affairs of the Indian ruling families. This statement is fundamentally incorrect.

Lord Wellesley's most significant policy was the Subsidiary Alliance system. This system was specifically designed to bring Indian states under British control without outright annexation initially. Under a Subsidiary Alliance:

• Indian rulers had to disband their own armies and accept a British force stationed within their territory. (Directly impacting military affairs).
• They had to pay for this British force, often ceding territory if they failed to pay. (Significantly impacting commercial and financial affairs).
• They could not enter into alliances or wage war against other states without British permission. (Restricting their political and military autonomy).
• They had to accept a British Resident at their court, who often interfered in internal administration.

Policies like the Subsidiary Alliance directly and profoundly impacted the military status, financial resources, and commercial activities of Indian ruling families. Wellesley's actions were not restricted to Company affairs but were actively aimed at dominating and controlling the Indian states.

Therefore, Statement 2 is incorrect.

Conclusion on Wellesley's Administration Statements

Upon analyzing both statements:

• Statement 1 regarding the specific percentage of army expenditure seems inaccurate based on the historical evidence of high military spending during Wellesley's expansionist period.
• Statement 2 is clearly incorrect as Wellesley's key policies, like the Subsidiary Alliance, directly intervened in the military and financial affairs of Indian ruling families, extending far beyond just Company matters.

Since both statements are found to be incorrect, the correct option is the one indicating that neither statement is correct.

Identifying the Correct Option

Based on our analysis, neither Statement 1 nor Statement 2 is correct.

The option that states "Neither 1 nor 2" is the correct one.

Revision Table: Key Aspects of Wellesley's Administration

Additional Information: Wellesley's Policies and Impact

Lord Wellesley's tenure is often considered a turning point in the history of British India, marking the shift from a trading company to a ruling power. His aggressive approach led to the significant expansion of British territory and influence.

The Subsidiary Alliance system was a clever method of indirect rule. It allowed the Company to maintain a large army at the expense of Indian rulers, neutralize French influence in Indian courts, and gradually bring states under their control without the immediate administrative burden of direct annexation. States that refused the alliance were often annexed or subjugated by force.

Major states brought under subsidiary alliance or defeated during his time include Hyderabad, Mysore (defeated in 1799), Awadh, the Maratha Confederacy (parts of it after the Second Anglo-Maratha War, 1803-1805), and others.

While successful in expanding British power, Wellesley's policies put a significant strain on the Company's finances due to the constant warfare and maintenance of large forces, although the alliances also provided revenue and resources in the long run.