CHAPTER III.

FROM 1765 TO 1793.

THE Company's acquisition of the Dewanny of Bengal, Bahar, and Orissa, and the manner of its attainment, having been adverted to in former pages, the object of this treatise only requires of us to notice that this would seem to be the proper commencement of the Company's political character in the Eastof their existence as an independent political state, altogether distinct from their commercial calling.

This distinction is remarkably exemplified in the intercourse of the Company's servants in Bengal with neighbouring native powers. Previous to the acquisition of the Dewannee, they are simply addressed as the " English Company, the noblest of merchants," or "the glory and ornament of trade :" but in the Dewannee grant, and in subsequent documents, a different style is adopted, and they are addressed by the Mogul emperor himself as "the high and mighty, the noblest of exalted

"nobles, the chief of illustrious warriors, our "faithful servants and sincere well-wishers, "worthy of our royal favours - the English Company."

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Previous to this epoch, both their objects and pursuits were purely commercial;* even their contests in India with the Dutch and French companies were, as we have seen, but the struggles of commercial rivals for actual existence, and to maintain a commanding influence, if not exclusive possession, of the Indian trade. On the other hand, the Company had now to exercise the functions of a virtual sovereignty; but it was a sovereignty unnaturally leagued with commerce. idea of separation was but little, if at all, entertained in the highest quarters; whilst the advocates of monopoly, fondly attached to old habits, and still cherishing hopes of il

The

* This was also the opinion of the Company's servants themselves; for which the reader may be referred to Mr. Verelst's letter of 16th December 1769, in which he describes their transition from the state of humble merchants, before the grant, "whose utmost ambition was the credit of a good bargain," to that of "masters and administrators of a legislative au"thority," after the grant; "with power to plan, direct, and inspirit every measure of government, whether with regard "to foreign treaties, or domestic regulations, &c.". Ver. App. p. 121.-Vide also Bruce's Plans for British India, p. 35.

limitable gain, clamoured then, as now, for the indispensable necessity of uniting power and commerce in the same hands, to govern a country so distant, and a people so opposed in genius and habits to the rest of the human race.

To

When advice of the Dewannee grant first reached England, the most extravagant expectations of its advantages were entertained by the proprietors of Indian stock, and by the public at large. His Majesty's Government even were infected with the same conceits; and at first demanded the revenues of these fertile countries for the crown. meet the expectations of Government, a strong party of Proprietors in Leadenhall Street proposed that, out of the surplus receipts from Bengal, 900,000l. per annum should be paid into the exchequer, and the proprietors be allowed a dividend of 14 per cent. for fifty years. On another occasion they are said to have conceived that a dividend of 50 per cent. was less than might be expected from the value of their present possessions.

The views of the Court of Directors, however, were more moderate, and just. The dividend to proprietors had stood at 6 per cent. from the year 1755 to 1766. The Directors now proposed to raise the dividend to

12 per cent.; to apply one half of the remaining surplus to the payment of the Company's debts, and the other half to be paid into the exchequer.* This proposition was at first approved by the Chancellor of the Exchequer, and a negociation proceeded on this basis. Meanwhile, a Court of Proprietors had already voted an addition of 4 per cent. to the annual dividend. This proposal of the Court of Directors for dividing 12 per cent. was objected to in parliament; and a bill introduced to restrain the proprietors from such dividend for one year. Further negociations and intrigues between the party of proprietors and the minister were the immediate consequence; and the Chancellor, turning tail on the Directors, now demanded a fixed annual payment of 400,000l., with a total indemnification of 1s. per pound duty on black tea, amounting to about 200,000l. more. This the Directors refused; but through the influence of the party it was carried in a general Court of Proprietors. The party, however, were in the end wofully disappointed; for, on the debate of this motion in liament, the payments to be made by the Company into the exchequer were acceded to,

* Verelst, p. 77.

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but the restraining bill on the proprietors' dividend was carried against the minister, who was left on this question in the minority.

After a long, though vain, opposition on the part of the Directors, the arrangement with Government for paying 400,000l. per annum was completed, and agreed to be extended to seven years.

*

But the proprietors had already secured to themselves, by a vote of the General Court, a dividend of 10 per cent. To meet this and the other demands on their treasury, the Directors, encumbered too as they now were with a heavy load of debt (p. 494.), had no resource left but to apply the funds of their sovereignty in aid of their commerce. The investments of goods from India were accordingly ordered to be encreased from 350,000l. to 800,000l. per annum; and as the Company's necessities in England prevented their sending out the usual supplies of bullion to China, these supplies, to the extent at

The 7th Geo. 3. cap. 56, provides the indemnification to Government for the duty they gave up of 1s. per pound on black tea; and the 7th Geo. 3. cap. 57, and the 9th Geo. 3. cap. 24, for the annual payment of 400,000l. to Government, which appears to have been only continued for five years.