Jagat Sheth
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Jagat Sheth, meaning the 'Banker of the World', was a title conferred on Fateh Chand, a very rich banker in Bengal in the first half of the eighteenth century.
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[edit] The Founding of the House
The founder of the house of Jagat Sheth was Manik Chand who came to Dhaka from Patna in the early eighteenth century and established a trading firm. When Murshid Quli Khan, the diwan of Bengal transferred his capital to Murshidabad, Manik Chand moved with him to the new capital. In Murshidabad he was a favorite of the nawab and eventually became the latter's banker and financial adviser. The Mughal Emperor Furrukhsiyar, soon after his accession to the throne of Delhi in 1712, honoured Manik Chand with the title of Nagar Seth (Banker of the city). Manik Chand died in 1714 and under Fateh Chand, his nephew, adopted son and successor the house achieved real greatness.
[edit] The Grant of Title
The title of Jagat Sheth, bestowed on Fateh Chand by Mughal Emperor Muhammad Shah in 1723, is a testimony to the unique position acquired by his banking house in the country. It had branches in the important cities of Bengal and northern India, including Dhaka, Patna, and Delhi, and its headquarters in Murshidabad. There are references in contemporary records to the east India company's transactions with the house of Jagat Sheth; these had to do with loans, repayment of loans, sale and purchase of bullion, etc. Orme writes that this Oswal Jain merchant family was the wealthiest in the Mughal Empire and its head had tremendous influence on the Murshidabad government. He stood security for the largest number of zamindars while his agents advanced loans to traders. He knew better than anyone else what was going on in the realm and his assistance was necessary in every emergency expenditure.
The transactions of this firm have been compared with those of the Bank of England. It performed for the government of Bengal many of the functions that the Bank of England did for the British Government in the eighteenth century. Its sources of income were manifold. It was the receiver of revenue and the treasurer of the government. The zamindars paid their revenue through this house and the nawab, again, remitted the annual payment to Delhi through it. It minted coins and purchased much of the foreign bullion imported into Bengal thereby adding considerably to its annual income.
After Fateh Chand his grandson Mahtab Chand succeeded to the title in 1744. He and his cousin Maharaja Swarup Chand enjoyed great influence during the time of Nawab Ali Vardi Khan. Ali Vardi's successor Siraj-ud-Daula alienated them, and they ultimately conspired against him with the English East India Company, which was then slowly making inroads into Bengal. Jagat Seth helped them with significant funds before and after the Battle of Plassey. The people of Bengal believe that the money of Jagat Sheth together with the sword of the English brought about the fall of Muslim power in Bengal. The house continued to enjoy power and influence during the nawabi of Mir Jafar, but earned the displeasure of his successor Mir Qasim who ordered the assassination of two of the leading Seth Brothers in 1763. This event, followed soon by the transfer of power from the Nawab to the Company led to the beginning of the decline and fall of the house.
[edit] The Decline
In recognition of the services of the Jagat Sheths, their house remained for several years the East India Company's banker. When the treasury was transferred from Murshidabad to Calcutta in 1773, however, this function ceased. The family still had preferential rates for minting coins at Murshidabad, but their wealth had diminished so much since the time of their fathers that they could not make full use of this privilege. Still, the successors of Mahtab Chand enjoyed the title of Jagat Sheth for six generations, the last being Fateh Chand, who inherited the title in 1912. After his death his heir did not assume it.
[edit] References
This article has been extracted from Banglapedia
