sure of imposing taxes on the colonies, and to force into execution the collection of them? The whole system of the state, government, and interwoven interest of the colonies, is gone too far for that to be practicable. Does it mean by any mode of policy to unite this system, which is, in fact, interwoven and incorporated into the very being of the British empire? I am afraid not. Matters are not yet gone far enough to point out the practicability and necessity of such political union. What then remains, but that we must return again, and re-establish the system of our politics on that basis whereon they stood, before some late innovations in our system shook that basis? What remains, but that we act, as to external taxes, with that commercial spirit and prudence, which the wisdom of parliament hath always exercised towards the colonies, since their first establishment: and that as to farther supplies, when they become necessary, the colonies are properly applied to by requisitions in the old-accustomed, known mode, which hath always succeeded, and been found effectual. Proceedings in the Commons on the East India Company's Dividends' Bill.*] A new kind of Money Bill was brought in this session, not founded upon any resolution of the Committees of Supply or Ways and Means. Early in the session, *“The disunion of the ministry was no less perceptible in the affairs of the East India company, which in pursuance of the intimation to the directors, early occupied the attention of parliament. Their charters, treaties with the country powers, letters, and correspondence with their servants in India; the state of their revenues in Bengal, Baliar, Orissa, and all other places, were ordered to be laid before the House, together with an account of all expences incurred by government on the company's behalf. Violent debates ensued, and a petition being presented from the company, the order for printing the private correspondence was discharged. This extensive enquiry incollateral topics, and among others a doubt troduced the discussion of many relative and was suggested concerning the right of the company to the territories acquired in India. The agitation of this question produced many animated speeches; the interference of the House of Commons was strongly deprecated; it was urged that the difficulty might be solved in the courts below, that House not being by the constitution, the interpreter of laws, or the decider of legal rights. As this is my opinion on this question in general, so on the particular matter, of this debate, on the proposed Bill, I will "The chancellor of the exchequer declared close what I wish to offer in recommend- his disinclination to try the question in the ing it to the House, either so to amend House, and recommended an amicable agreeand explain its act, as that both the mode ment with the company. A large party of the of quartering, and the act of making the proprietors, though strenuous in maintaining supply for the expence of it, may origi- their claim to those possessions during the renate with the people of the colonies, and maining term of their charter, were rather disbe an act of their own assemblies; in which posed to prevent litigations by a reasonable composition, and prepared proposals for an ad case, this enforcing Bill will become un-justment of the dispute. When this scheme necessary; or let it be considered as a service which the crown requires of them, and for which, without the interposition of parliament, it makes the proper requisitions. This will restore peace, this will effect the business. The contrary measure of this enforcing Bill will be the beginning of a series of mischiefs, and therefore I shall be against the bringing it in. This speech was followed by one from sir Thomas Sewell, who was answered by the right hon. Charles Townshend; after whom spoke, in answer to what governor Pownall had said, Mr. Secretary Conway, Sir Gilbert Elliot, the right hon. Hans Stanley. The right hon. George Grenville arose on the same account, also the right hon. Welbore Ellis, who were answered by Mr. Alderman Beckford. The Bill however passed. was agreed to by the directors and presented to the ministry, their want of cordiality occasioned new embarrassments: after the proposals had been delivered to several members of administration in succession, they all declined taking any part in the negociation out of the House; and a petition was presented to parliament, containing two sets of proposals for a temporary agreement during three years. On the basis of one of these proposals, a Bill was framed, binding the company to pay to government the sum of 400,000l. a-year, by half yearly payments, and to indemnify the nation, should any loss be sustained in consequence of the imposition of certain inland duties, and the allowance of some drawbacks granted at their request. The term, instead of three, was limited to two years, to commence from the first of February 1767. "While this affair was in agitation, the company proposed, at a general court, an increase of dividend; justifying the measure by the state of their finances, as they would be that is, on the 25th of November, a part | united company of merchants of England, of the Act 9 and 10 William 3, entitled, trading to the East Indies, setting forth: 'An Act for raising a sum, not exceeding "That the petitioners, being duly sen2,000,000l., upon a fund for payment of sible of the great obligation they lie under annuities, after the rate of 8. per cent. to government, and that their interests per annum, and for settling the trade to are, and must ever bc, inseparable from the East Indies;' and also part of the Act those of the state, are most earnestly deof 7 George 1, entitled, 'An Act to enable sirous that the public, and the East India the South-Sea Company to engraft part Company should mutually reap the beneof their capital stock and fund, into the fits arising from the acquisitions and restock and fund of the Bank of England, venues, lately obtained in India; and the and another part thereof into the stock petitioners conceiving, that in the present and fund of the East-India Company,' state of things, a temporary agreement, &c., were, upon motion, read to the House, for the space of three years, may be conand thereupon it was resolved, that a com- ducive to the advantage of both, do submittee be appointed to enquire into the mit to the consideration of parliament the state and condition of the East India following Proposition, in order to the carCompany; that the said Committee be rying such agreement into execution. a Committee of the whole House. This enquiry gave rise to this new Money Bill. After the House had several times resolved itself into this Committee of enquiry, and had called for papers, and accounts relating to this affair, at last on the 20th of May, there was presented to the House, and read, a Petition of the 1. "They beg leave humbly to suggest, that it will be not only expedient but necessary to the extending their commerce, and enabling them to invest those revenues in India in the produce of the country, that this House will take under their consideration the inland duties upon teas, in order to prevent the pernicious practice of smuggling, and encourage the consumpenabled, before the month of February, to dis-ration in the duties as to the House shall tion of that commodity, by such an altecharge all their debts, and pay the increased dividend. The ministry wisely considering this as a dangerous delusion, calculated to renew the fatal effects of the South Sea scheme, by letter to the directors, recommended the court not to augment the dividend till their proposals were fully discussed in parliament. The proprietors, however, slighted the admonition, and declared a dividend for the ensuing half year, at the rate of twelve and a half per cent. "In consequence of this proceeding, two Bills were brought into parliament; one for regulating the qualifications of voters in trading companies; the other for restraining the making of dividends by the East India Company. The latter Bill rescinded the recent resolution, and restrained them from making any dividend exceeding ten per cent. "This measure occasioned a spirited opposition: the company, alarmed at the encroachment on their supposed privileges, petitioned the House, and also proposed, if the Bill were laid aside, to bind themselves for the time of their agreement with government, not to extend their dividends beyond the limits indicated in the restraining Bill. The petition and proposal were equally disregarded, and the Bill was sent up to the Lords, where it was no less strenuously opposed. The whole strength of the anti-ministerial parties was combined, and on the third reading the minority divided 44 against 59. A long, learned, and argumentative protest in 16 articles was entered on the Journals, and signed by 19 peers," Adolphus. seem fitting, and by granting a draw-back on such teas as may be exported to Ireland, or to any of his Majesty's colonies, and also by such alterations, as may conduce to the same salutary purposes, in regard to the duties on callicoes, muslins, and raw silk. tages expectant from the revenues before mentioned certain and permanent, the House will provide effectual methods, as well for recruiting the forces necessary in India, as for regulating the Company's civil and military servants there, for preventing the exportation of military stores thither, except for the Company's service, and for preventing illicit trade. 2. "That in order to render the advan 3. "That from the said revenues, there shall be deducted, the expences attending the collection thereof, together with the civil, military, and marine establishments, and also the charges incurred for fortifications, buildings, and repairs, the same to be adjudged by annual accounts transmitted from, and properly authenticated by, the several presidencies, in which the same shall be incurred. 4. That an account of the Company, including the residue of the said revenues, and the produce of their exports, shall be annually made up, and that of the sums arising from the general sales, the sum of 400,000!. shall be deducted, in lieu of profits, which the petitioners have hitherto enjoyed. 5." That the net surplus shall be equally divided between the public and the company. 6. "That the Company's share of the said surplus shall be duly and solely appropriated to the payment of their present debts, until they shall be reduced to the sum due to the Company from the public. 7. "That this agreement shall commence from the 1st of February, 1767, upon all goods to be imported from India, and shall continue for three years, provided the Dewannee of Bengal, Bahar, and Orixa, shall remain in the Company's hands. 8. "But if it should be the opinion of the House, that it will be the more benefical for the public to enjoy a specific sum, instead of the proportion of the revenues and trade above mentioned, then the petitioners proposed to pay, in lieu thereof, 400,000l. per annum for three years, by half yearly payments; the first payment to commence March 25, 1768; and they are also willing to indemnify the public in respect of such draw-back on teas exported, as shall be granted by parliament, taking the same in a medium of the duties on the quantity of teas exported for five years past; and that such indemnification shall also extend to the inland duty of one shilling in the pound on the quantities of all black and singlo teas, consumed in Great Britain, upon a like medium of five years, in case it shall also appear a fit measure to parliament to take off the said duty; and provided the duties on the increased consumption shall not be sufficient to replace or supply the aforesaid duty of one shilling in the pound: and the petitioners hope, that what is hereby proposed, either in the mode of participation, or by a certain yearly payment, will appear reasonable and equitable to the House, more especially considering that the public revenue, during this interval, must continually in crease in the same proportion with the commerce of the Company, and the petitioners entreat the House to recollect the immi nent dangers to which, in many critical conjunctures, their properties have been often exposed, the very large sums they have expended since the commencement of the wars in India, in which they were never the aggressors, the low dividends, which notwithstanding their few losses at sea, they have received during a course of years, whilst the public remained in the uninterrupted participation of an annual revenue, arising from the Company's trade, of the full value of one third of their capital: circumstances, which, the proprietors flatter themselves, will procure them the favour and protection of this honourable House, and entitle them to that candour and justice, which have ever been the characteristics of the British senate." This Petition was referred to a committee, who came to the following Resolutions, viz. "That it is the opinion of this committee, 1. That it would be for the mutual benefit of the public, and the East India Company, that a temporary agreement be made, in regard to the territorial acquisitions and revenues lately obtained in India. 2. That it is expedient, for the purposes of the said agreement, that it should continue for a term, not exceeding three years, to commence from the 1st of February, 1767. 3. That the said acquisitions and revenues do remain in the possession of the Company, during the continuance of such agreement: and that the Company do pay to the public, annually, during the said term, the sum of 400,000l., by half yearly payments, each payment to be made within six months after the same shall have become due. 4. That it will be necessary and proper, for the better carrying on and extending the trade of the said Company, that provision be made for granting a drawback on teas exported to Ireland, and the British dominions in America; and for taking off the inland duty of one shilling per pound weight on black and singlo teas, consumed in Great Britain; upon such indemnification to be made by the Company to the public, in respect to such duty and drawback, as is mentioned in the Petition of the said Company." The three first of these Resolutions were agreed to by the House nem. con. and a And the fourth Resolution was referred to Bill ordered to be brought in upon them. the Committee of Ways and Means. Proceedings in the Lords on the East India Company's Dividends' Bill.*] June * HARDWICKE PAPERS.-List of the Speakers in the House of Lords, June 17, 1767, on a Motion for a Conference with the House of Commons on the Bill relating to the East India Company's Dividend. 17. The House being moved, "That a Conference be desired with the House of Commons, to the end that the ground on which the Bill for regulating certain proceedings of the general courts of the united company of merchants of England trading to the East Indies, proceeded in that House, so far as the same rescinds an Act done on the 6th of May last by a General Court of the East India Company, and so far as the same takes from the said Company the power of declaring any dividend beyond the rate of 10l. per cent. per ann., during the time therein mentioned, may appear the more plainly to this House" The same was objected to. After long debate; the question was put thereupon. It was resolved in the negative. The House then went into a Committee upon the Bill, intituled, "An Act for regulating certain Proceedings of the General Courts of the United Company of Merchants of England trading to the East Indies." Mr. Rous was called in; and, being examined in relation to the said motion, acquainted the House, "That the annual accompt for June 1767 is not yet made up, there having been so much time taken up in making copies of papers and accounts Which was objected to, by the duke of Grafton, who said, He never would consent to a motion, which implied something that never had existed; for that no propositions had ever been made and settled between the ministry and the East India company; and what had already past between them, had been only by way of conversation, upon the most likely means for an agreement between government and the company; and a debate ensuing thereon, lord Temple altered his motion, to have copies of all the propositions which had been made as the basis of an agreement between the ministry and the East India company. And the question being put, was (I think) rejected. Lord Temple then moved, that copies of all the charters which had been granted by his Majesty, or any of his royal predecessors, to the East India Company, might be laid before the House. Which occasioned fresh debate; but was in the end (if I mistake not) assented to. The House then went into a committee upon the Bill; and after several extracts of letters to the East India company, from their servants the 19th instant, (which contained an account in Bengal, received by the ship Cruttenden on of some further acquisition and advantages to the company), had been read, the chairman called upon the counsel to proceed. But lord Temple again got up, and desired, that Mr. Rous might be again called in; for as he had in the conclusion of his last examination declared, that circumstances might arise, which might make him alter the opinion he then held, with regard to fixing the dividend at 10 per cent., his lordship thought that the papers which they had then heard read, afforded new matter, and brought a new case before them, and might occasion Mr. Rous to be of a different opinion from that he had declared at his last examination. This occasioned a very long and warm debate; and the question being put, it came to a division, and the numbers were, Content 38, Not Content 57. The chairman then again called upon the counsel to proceed. But another motion was made, that, as it was then so late (being past 8 o'clock) the House might be adjourned to an early hour to-morrow; but it was over-ruled. The duke of Richmond then moved to have several persons called in for examination, who were all proposed separately to the House, and all rejected. The counsel were then ordered to proceed, and accordingly began; soon after which, a motion was made to adjourn, and the House was accordingly adjourned till to-morrow.-The following were the principal Speakers for and against Mr. Rous's being called in: for both Houses and the counsel against the Bill; thinks that the said accounts may be made out in two or three days; but, for greater certainty, refers to the accomptant general; that it could not properly be made out till the Cruttenden arrived; and that no conclusions can be drawn from the accompts before the House." The same was agreed to; and ordered accordingly. The House being moved, "That the court of directors do forthwith prepare, and that the proper officer do lay before this House, an estimate of all the monies that may probably be received, both in Great Britain and India, and the payment that ought to be issued, from this time to the usual day of paying the Christmas dividend." may Mr. Rous was again called in; and being examined in relation to the said estimate acquainted the House, "That he cannot tell what time this accompt may take copying; that it is not necessary to be laid before the proprietors; that the directors thought it necessary to make up a cash-accompt of what they may receive and pay at Midsummer, that it might be laid before the proprietors, in order to stem the tide against raising the dividend, and to shew they could not with propriety do it; that he thinks a calculation be made of what the Company may receive here; but thinks it will be very difficult to make any calculation of what may be received in India; that the receipts and payments in India to Christmas next is of no use to determine the dividend; that the Company have no right to declare a dividend upon their expectancies in India; that he thinks it illegal to declare an increase of dividend till the Company have paid their debts, but gives this as matter of opinion, not having consulted counsel about it; that there are always outstanding debts when a dividend is declared; that the dividend has formerly been reduced to 6 per cent.; that they might possibly draw upon the East Indies for 40,000%. or that they might get it advanced here, but it would be very imprudent; that the debts in India might be paid out of the balance in favour of the Company in India, if there is any, which, if there should, it will add to the general accompt, in favour of the Company, to increase their dividend; that they are not to depend entirely upon possession, in making their dividends, but upon their ability to pay their debts; that he don't know whether the accompt between Sujah Dowler and the Company was laid before the proprietors, previous to the dividend; that he did not lay it before them when called upon by Mr. William Burke, when the agreement with government was in agitation, that the dividend might take place at Christmas; that he thinks the drawing specie from Bengal must be very prejudicial to that country; and that he cannot tell the amount of the debt in course of payment for the year 1767." June 25. The order of the day being read, for the House to be again put into a Committee upon the Bill, intituled, "An Act for regulating certain proceedings of the General Courts of the United Company of Merchants of England trading to the East Indies:" The House was adjourned during pleasure, and put into a Committee upon the said Bill.* After some time, the House was resumed. Majority 15 Remarkable passages. Lord Temple observed, that 400,000l. to be kept in reserve, either for an increase of dividend, or other occasions of the Company, had been mentioned by the directors in their proposals, and therefore it seemed extraordinary, that they should oppose the increase of dividend: that the profits of the trade were 600,000l., and that the proprietors kept greatly within compass by only dividing 400,000l. Lord Shelburne declared his opinion as to the right of the public to the territorial acquisitions; and that parliament had powers competent to decide upon it. The Duke of Richmond blamed the directors |