EAST INDIA QUESTION.
The great question discussed in parliament during this session related to the East Indies. At this period the East India Company held “the gorgeous East in fee.” The merchant princes of Leadenhall-street, who commenced their career with a strip of sea-coast on the outermost limits of Hindostan, had now acquired principalities and kingdoms, and had even made themselves masters of the vast inheritance of Aurungzebe. Fortunate as the Argonauts, they found and possessed themselves of the “golden fleece,” which had been the object of their search. Enormous fortunes were made with a rapidity hitherto unknown, and they were gathered into the laps of even the most obscure adventurers. The fables of the ring and the lamp were more than realised, and the fountain from whence these riches ran appeared to flow from an inexhaustible source. Men had only to go and stand by its brink, and if avarice could be satisfied, they might soon return home with not only sufficient wealth to maintain them in opulence and splendour, but with some to spare for the poor and needy.
Such were the views which government seems to have taken of these merchant princes. Early in November a committee was appointed for investigating the nature of their charters, treaties, and grants, and for calculating the expenses which had been incurred on their account by government. In the course of this scrutiny two questions suggested themselves to the committee; namely, whether the company had any right to territorial acquisitions, and whether it was proper for them to enjoy a monopoly of trade. Some of the members argued that the company had a right, while on the other side some maintained that, from the costly protection afforded it, government had an equitable claim to the revenues of all territory acquired by conquest. It was the opinion of the cabinet, that the state did not possess its proper share of the company’s profits, and the chancellor of the exchequer conceived that by either taking their territorial conquests into the hands of government, or making them pay largely for keeping that management in their ow a hands, the state would obtain that wealth of which it stood so much in need. Chatham’s attention was drawn to this subject, but he merely advised that Beckford should make a motion for examining into the state of the East India Company, and remained still in the west of England. This motion was made, and the house resolved itself into a committee of inquiry, and called for papers. In the meantime the company suggested an amicable arrangement, and presented a series of demands, among which were—that the administration should prolong the charter to the year 1800, or to a further term, and to confirm to the company the sole and exclusive trade of the East Indies for three years at least after the expiration of the charter granted in the last reign; that it should agree to an alteration in the inland duty upon tea, with the view of preventing smuggling; that it should allow a drawback on the exportation of tea; that it should alter the duties on calicoes and muslins; that it should consent to some proper methods of recruiting the company’s military forces, and for strengthening their cause in India; that it should prevent the commanders of the company’s ships and others from conveying any kind of warlike stores clandestinely to the East Indies; that it should use its strong interposition with the court of France to obtain large sums of money which the company had expended for the maintenance and transport of French prisoners to Europe; and that it should use its strong interposition likewise with the court of Spain with respect to the Manilla ransom, that the company might obtain indemnification for the great expenses incurred by that expedition. The company laid before the house their charters, treaties with the native sovereigns, letters and correspondence, and the state of their revenues in Bengal, Bahar, and Orissa; but the whole affair was so complicated, that the ministers could not make themselves thoroughly masters of the subject. Not one would, in fact, undertake the management of the business. They shifted the proposals from one to another, and could not come to any determination what to accept or what to reject. At every stage of the business it was attended with violent debates. Townshend was strongly in favour of an amicable arrangement with the company, laying great stress on the quantum to be given for the prolongation of the term of their charter, while Company declared that the salvation of the country depended upon the proper adjustment of this nice affair. Still Chatham kept aloof from the business, and he either would not from illness, or could not from despondency, give his thoughts and directions in writing as to what steps to take and what further motion to make. In the end, therefore, after many divisions, a bill was framed, granting nearly all that was asked for by the company, and binding it to pay £400,000 per annum, in half-yearly payments, and to indemnify the exchequer, should any loss be sustained in consequence of lowering the inland duties on tea, and the allowance of the drawback on its exportation. But the term of this contract was limited to two years; commencing from the 1st of February of the current year; so that the company had a further interference with their territories and wealth in prospect: but till the expiration of that term, their territorial rights were fully admitted.
While this subject was under parliamentary discussion, the proprietors of East India stock demanded of the court, that, as the company had gained so much territory and so many new advantages, a larger dividend should be declared. In compliance with this demand the dividends were increased from ten to twelve and a half per cent., which step called for the interference of government. In order to check a proceeding which was considered calculated to renew the gambling stock and share jobbing of the memorable South Sea year, two bills were brought into the house by ministers; one for regulating the qualifications of voters in trading companies, and the other for restraining and limiting the making of dividends by the company; fixing them at ten per cent. This latter bill encountered a most violent opposition both by the company and in the house, particularly by the lords, but it was carried, and received the royal sanction.