tion of their own strength, operating with the immediate dread of power, on the one side, and án impatient avidity, incompatible with true policy, on the other, could have induced the former to grant, or the latter to require, any participation in their revenues, until those debts were reduced to a moderate size, and the true condition of the Company known.

The event has too fully justified this opinion; and we have seen the Company, in the course of a very few years, brought to the brink of bankruptcy and ruin, in consequence of various mismanagements of their servants, various mistakes of the proprietors of that Company, and various errors of administration, and even of parliament. For, though the revenues of Bengal and its dependencies are very great, the stated and certain disbursements, exclusive of contingencies, are also very consider able; of which the tribute to the Mogul, and the stipends to the nominal nabob, his duan, and other great officers, amount to about one million sterling annually, besides the expences of collection. A great military force, of near 30,000 men, must also be kept up as a matter of necessity; and the civil establishments, from the nature and distance of the countries, the temper and manners of the people, with other circumstances, must of course run very high.

To this it may be added, that however great the opulence of Bengal might be, yet, as it was not founded upon any inherent treasure in mines, but depended solely upon the labour and industry of the people, upon commerce, manufactures, and agriculture, it VOL. XVI.

cannot be supposed that it could long bear the sending of between seven and eight hundred thousand pounds sterling of its capital stock, annually out of the country, without a possibility of its return. This was, however, the case at present, the tribute paid to the Mogul, and the sum to the government here, being to that amount. With this enormous waste of its treasure, Bengal was also obliged to furnish the Company's investments for China in silver, at the same time that its ancient and abundant sources for that commodity from Europe were very much diminished by the change of government and property. It appears then, upon the whole, that, with the best management, and the greatest œconomy, the Company was not, with justice to itself and its creditors, equal to the payment of that sum to government, to say nothing of its increase of dividend.

It must however be acknowledg ed, that economy was not practised, and that, through the rapacity and misconduct of the Company's servants, great disorders prevailed in the conduct of their affairs. It is said that expensive wars had been wantonly entered into, and shamefully conducted, to gratify the avarice and interested views of individuals. Vast sums were also charged to have been lavished upon fortifications, which were either unnecessary, or of such an extent, that the number of troops requisite for their defence would always be sufficient to command the field in that country. Such works are frequently converted into jobs in all countries; but in this instance, it is probable, they may be considered merely as such. [E]

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Numberless other grievous complaints were made, many of which, it is to be feared, were too well founded. Pernicious and oppressive monopolies were established; and much wrong and oppression was practised by individuals, in countries where the name of an European was sufficient to authorise any act of injustice to the natives, It could not even be hoped, that courts and governments, any more than particular persons, were undeserving of censure, at such a distance from any control, and in a situation, in which an immense fortune was a sure justification of the means by which it was acquired.

It was to remedy some of those evils, and to prevent others, that the three unfortunate gentlemen, who are too justly supposed to have perished on board the Aurora, were sent out in the year 1769, as supervisors to India. The fate of these gentlemen was undoubtedly one of the greatest misfortunes that could have befallen the Company. They must have remedied many evils; and if it were admitted that they might have created some, still the benefits would have been great; but in no instance of so much consequence, as in removing the pretences for that fatal interference, which, through the misconduct of its servants, government has since assumed in the affairs of the Company.

During this state of disorder and misconduct abroad, the Company was agitated by violent disputes.It was necessary to communicate with government, to whom the non-payment of the four hundred thousand pounds annually was to be accounted for, and where for

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bearance, at least, if not assistance, was to be demanded. The direc tors, and a strong body of the proprietors, were in a continual state of hostility. The former charged. with acting immediately under the influence of the court, to which it was said they exposed the affairs, and sacrificed the inte rests of the Company; and indeed it appeared in some instances that they had either been imposed upon themselves, by the ambiguous expressions and conduct of the minister, or that they joined in the deception of their constituents.

Though the Company had been drawn into the hands of administration, and their affairs under the cognizance of parliament, so early as the year 1767, nothing had been done in all this time towards their regulation or settlement, except the restricting of their dividends, rescinding their acts, and the obtaining from them, without any visible equivalent, immense sums of money, which were far beyond their abilities. No order was taken, conformable to the amazing change in their condition, for the regula tion or government of their new acquisitions; nor no new powers of control lodged in their hands, to counterbalance the immense trusts which they were now under a necessity of reposing in their servants; nor to restrain or prevent those evils which must naturally attend the quick transition, from the management of a countinghouse to the government of an empire.

While the many were surprised at this apparent inattention to matters of the utmost importance to the nation, some of those who were the most versed in political ma

nœuvres,

nœuvres, pretended to foresee the consequences that have since taken place, and argued, that such glaring disorders could not have been overlooked; that they were permitted only to render the Company odious through the faults of its servants; to shew its incapa bility of governing such great possessions; and to prepare the nation for the changes that were to follow.

However this was, the mal-administration in India, with all its consequences, were suffered to pass without notice or observation; and we have already seen in the transactions of the year 1772, that, though the affairs of the Company were evidently alluded to at the opening of the session, in the speech from the throne, they were nevertheless suffered to lie over till near its close, when a bill was brought in by the deputy-chairman, for en larging the controlling powers of the Company with respect to their

servants in India. The bill came

to nothing in that session. But a member, though in the King's service, not connected with ministry, whether with or without their con sent, at length awakened their at tention to this object. This gave birth to the select committee, which was armed with full powers for all the purposes of enquiry.

The Company were now alarm ed; and were not only apprehensive of a rigorous enquiry, but were too sensible, from late expe rience, of the inefficacy of charters for their protection, in a contention. It was therefore proposed in the India-House, at the end of that session of parliament, to send out, during the recess, a new commission of supervision, with full powers

for the regulation of all their affairs abroad. Some time was however necessarily spent in bringing this scheme to maturity; it being not less difficult to agree upon the per sons who were to be appointed to an office of such great importance, than upon the extent of the powers with which they were to be fur nished. At length, six gentlemen were nominated for this purpose; and a general officer of high rank and estimation, who had command. ed with great honour in the late war in America, consented to go out at the head of the supervision. The meeting of parliament, however, put an end to the design. It was now generally known, that the affairs of the Company would form the principal object of the ensuing session; no other cause could be assigned for its being opened before the holidays; and, as administration had no share in the appointment of the supervisors, though the measure itself had been countenanced by them, it was easy to foretell, t'nat parliament would interpose to prevent its being carried into execu tion.

The various results of all the errors that had been committed, and the misconduct that had pre vailed both at home and abroad, were now accumulated, and had appeared in their full force during the recess of parliament. The Company, with an empty treasury at home, had accepted bills from Bengal to an immense amount, which were now coming round in course of payment; they were at the same time deeply in debt to the Bank for cash borrowed, to the re venue for custom-house duties, and to the treasury, on the annual stipulated payment, as well as on the [E] 2

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article of indemnification for teas, an experiment made in concurrence with government; but by which they were prodigious losers. Tho' this state of their affairs might have been easily foreseen by those who were at their head, nothing was done to prevent it; the dividend was raised to twelve and a half per cent. the annual tribute to government, accordingly continued, and the India bills, to the amount of 1,200,000l. wantonly, or carelessly accepted, without a due attention to the funds by which they were to be paid.

These distresses took away all the means of defence, and threw the Company naked into the hands of administration. The directors were under a necessity of entering into a negociation with government for a loan to extricate their affairs, at a time when the most hostile measures were, probably, in contemplation. The first lord of the treasury received these proposals with dryness and reserve. He referred them to parliament for satisfaction. Thus the crimes and misdemeanours of their servants, toge ther with the envy and obloquy which attended their immense fortunes and conduct at home, became at length blended into one common and undistinguished mass, with the general state of the Company's affairs, their territorial and corporate rights, the causes of their present distresses, and the recent application for borrowing money from the public.

The enquiries made by the select committee were principally directed to the measures pursued, and the conduct of the Company's servants in Bengal. The publication of the reports of this committee excited a general indigna

tion, and furthered the confusion of ideas, and inflamed the heat of these passions.

Such was in general the state of public affairs at the meeting of parliament. In the Nov. 26th. speech from the throne, it was observed that their private convenience would have been consulted by allowing a longer recess from business, if some very important parts of the public service had not required the immediate attention of parliament. It then shewed how much the commerce and revenues of the nation, as well as the private rights and interests of a considerable number of particular people, were interested in the maintenance of the credit and prosperity of the East-India Company. That, upon information of the difficulties in which that Company appeared to be involved, it was determined to give them an early opportunity of informing themselves fully of the true state of their affairs, and of making such provisions for the common benefit and security of the various interests concerned, as should be found best adapted to the exigencies of the

case.

towards this country, every attention should be paid to the preservation of the public tranquillity, so far as it was consistent with the honour of the crown, and the interests of the people. Great satisfaction was expressed, that the continuance of peace had afforded an opportu nity of reducing the naval establishment; but it was concluded, that it would be agreed that a considerable strength at sea must be ever necessary for preserving the reputation and power of these kingdoms. Strict economy was promised with respect to the supplies; and it was lamented that the harvest had not afforded the relief that was hoped with respect to the dearness of corn; but it was fully understood, and strongly recommended, that every thing which human wisdom was capable of devising, would be done to remedy that evil.

The gentleman who moved for the address in the House of Commons, as well as the other who se conded the motion, expatiated largely on the enormous transgres-, sions of the East-India Company, and described their affairs as being in the most ruinous, and almost irretrievable situation. The minister, however, said, that the complicated union of the Company's Sovereign and political powers, with their commercial affairs, had been attended with unforeseen consequences, which had involved them in some considerable difficulties, and had put the Court of Directors under a necessity of applying to goverment for relief and assistance; but he at the same time declared, that, from the clearest estimate he was capable of making of the state of the Company, it ap

peared to him, that, however closely: pressed they might be by present ex": igencies, and embarrassed in money matters, they were, nevertheless, in point of internal strength and vigour, in full health.

He then made a motion, that, for the better taking into consideration the affairs of the Company, a committee of secresy, consisting of thirteen persons, to be chosen by ballot, should be appointed for that purpose. In support of this measure, he observed, that the present critically distressed state of the Company's affairs demanded the most immediate and effectual relief, which could not be so speedily procured in any other manner; and that it was to be hoped, by this method, a great deal might be done towards the answering that desirable purpose, even before the Christmas recess. That this method would prevent the unnecessary exposure of the Company's affairs, and most secret and confidential transactions, to the public view that it would be highly improper, as well as unfair and ungenerous, that they should suffer any injury, in consequence of a simple money transaction' with the public; but, that their affairs being thus laid open only to a few, it would necessarily follow, that no undue advantage could be taken of such knowledge.

This mode of a private enquiry, and the powers to be lodged in the hands of so small a number, was much objected to. It was said, that the idea of a secret committee was unconstitutional; and that it was a mode only allowable when criminal charges were made. That the parliamentary precedents went no further. That members ballotted [E] 3

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