On the eve of the revolt of the English-speaking colonies in America, a wise measure of toleration was accorded to the French inhabitants of Canada by the Quebec Act of 1774, which allowed them freely to profess their Roman Catholic religion, and to enjoy the continuance of the French civil law. To these advantages was added in 1791 the privilege of a representative assembly. India, too, felt the influence of the new policy, when in 1784 Parliament created a Board of Control to see that the East India Company did not abuse its political functions. Even Ireland, which was practically a colony, was accorded in 1782 the right to make its own local laws, a measure of self-government enjoyed till 1 January, 1801. [Footnote: See below, p. 431.]
[Sidenote: Decline and Gradual Abandonment of Mercantilism]
British commercial policy, too, underwent a change, for the Navigation Acts, which had angered the American colonies, could not now be applied to the free nation of the United States. Moreover, the mercantilist theory, having in this case produced such unfortunate results, henceforth began to lose ground, and it is not without interest that Adam Smith's Wealth of Nations, the classic expression of the new political economy of free trade,—of laisser-faire, as the French styled it,—which was destined to supplant mercantilism, was published in 1776, the very year of the declaration of American independence. Of course Great Britain's mercantilist trade regulations were not at once abandoned, but they had received a death-blow, and British commerce seemed none the worse for it. The southern American states began to grow cotton [Footnote: During the war, cotton was introduced into Georgia and Carolina from the Bahamas, and soon became an important product. In 1794, 1,600,000 pounds were shipped to Great Britain.] for the busy looms of British manufacturers, and of their own free will the citizens of the United States bought the British manufactures which previously they had boycotted as aggrieved colonists. In this particular, at least, the loss of the colonies was hardly a loss at all.
[Sidenote: Extent of the British Empire at Close of Eighteenth Century]
Even for those ardent British patriots who wished to see their flag waving over half the world and who were deeply chagrined by the untoward political schism that had rent kindred English-speaking peoples asunder, there was still some consolation and there was about to be some compensation. In the New World, Canada, Bermuda, the Bahamas, Jamaica, and smaller islands of the West Indies, and a part of Honduras, made no mean empire; and in the Old World the British flag flew over the forts at Gibraltar, Gambia, and the Gold Coast, while India offered almost limitless scope for ambition and even for greed.
[Sidenote: Extension of the British Empire in India]
[Sidenote: Warren Hastings]
To the extension and solidification of her empire in the East, Great Britain now devoted herself, and with encouraging results. It will be remembered that British predominance in India had already been assured by the brilliant and daring Clive, who had defeated the French, set up a puppet nawab in Bengal, and attempted to eliminate corruption from the administration, Clive's work was continued by a man no less famous, Warren Hastings (1732-1818), whose term as governor-general of India (1774-1785) covered the whole period of the American revolt. At the age of seven-teen, Hastings had first entered the employ of the British East India Company, and an apprenticeship of over twenty years in India had browned his face and inured his lean body to the peculiarities of the climate, as well as giving him a thorough insight into the native character. When at last, in 1774, he became head of the Indian administration, Hastings inaugurated a policy which he pursued with tireless attention to details—a policy involving the transference of British headquarters to Calcutta, and a thorough reform of the police, military, and financial systems. In his wars and intrigues with native princes and in many of his financial transactions, a Parliament, which was inclined to censure, found occasion to attack his honor, and the famous Edmund Burke, with all the force of oratory and hatred, attempted to convict the great governor of "high crimes and misdemeanors." But the tirades of Burke were powerless against the man who had so potently strengthened the foundations of the British empire in India.
[Sidenote: Cornwallis]
In 1785 Hastings was succeeded by Lord Cornwallis—the same who had surrendered to Washington at Yorktown. Cornwallis was as successful in India as he had been unfortunate in America. His organization of the tax system proved him a wise administrator, and his reputation as a general was enhanced by the defeat of the rebellious sultan of Mysore.
The work begun so well by Clive, Hastings, and Cornwallis, was ably carried on by subsequent administrators, [Footnote: For details concerning British rule in India between 1785 and 1858, see Vol. II, pp. 662 ff.] until in 1858 the crown finally took over the empire of the East India Company, an empire stretching northward to the Himalayas, westward to the Indus River, and eastward to the Brahmaputra.