EAST INDIA AFFAIRS.
During this session the charter of the East India Company was prolonged for the further term of five years, on conditions similar to those in the last agreement. The company was to continue to pay £400,000 per annum, and to continue to export British goods, at an average of equal value with those sent to India during the last five years. The company, however, was now allowed to increase its dividend to twelve and a half per cent., provided it did not in any one year put on more than one per cent. If any decrease of dividend was found to be necessary, then the sum payable to government was to be reduced proportionately, and if the dividend fell to six per cent., it was to cease altogether. This bargain had scarcely been renewed when intelligence arrived from Hindostan, that Hyder Ally had reduced the company, after an expensive war, to sue for a dishonourable peace, and India stock fell rapidly.