But between the years 1694 and 1698 this Eastern trade practically was thrown open. And then the State happened to require a loan of £2,000,000. This was found by a newly formed company of associated merchants who had been very vigorous in opposing the East India Company’s privilege. And since this new company wanted only eight per cent. (not a high rate for those days) for their loan, they also received a charter. The result was that there were two companies trading to India and each with its own charter. The title of this fresh association was the New East India Company, and presently a kind of third company arose as an offshoot from this second one. All this competition had a most disastrous effect and brought both the old and new companies almost to ruin. Each company hated the other, while the public detested both most heartily. There were only two possibilities open. Either both companies must be wrecked or they must amalgamate. It was wisely decided to choose the latter. They therefore adjusted their differences, and in the year 1708 were amalgamated into one corporation, calling themselves “The United Company of Merchants of England Trading to the East Indies.” The capital was increased to £3,200,000. They were the means of aiding the Government by advancing to the latter £1,200,000 without interest, and the Government in turn agreed to extend the Company’s charter till the year 1726, with three years’ notice of termination. And it was subsequently extended till 1766.

During the last decade of the seventeenth century when hostilities existed between England and France the East India Company laid before the House of Lords an account of the great losses which the former had incurred at sea, owing to the lack of English cruisers. Those were no easy times for the ships bound either to or from the Orient, for, besides possible attacks from French men-of-war, the English Channel and approaches thereto were alive with privateers, to the great detriment of the Anglo-Indian trade. Some idea of the size and strength of the East India Company’s ships about this time may be gathered from the following list of craft which the French captured from them during the year 1694 alone:—

Name of ShipTonnageMenGuns
Princess of Denmark67013340
Seymour500——
Success400 8032
Defence75015050
Resolution65013040

In later years one of the most valuable commodities which India was to produce and send to England in these ships was tea. The first importation by us was in the year 1667. Only a small amount, consisting of 100 lb., was sent, but it was not long before this was greatly exceeded. However, the early years of the eighteenth century were marked by a disappointment in the trade which the Company was doing. Although the latter’s ships were now trading also with China, yet the value of our exports to the East were less than £160,000 a year: and this, let it be remembered, included also military stores for the Company’s settlements in the East and at St Helena. The reason for this slump is easily explained. Every authority will admit that the finest tonic for trade is competition. Monopoly is death to enterprise, while a spirit of rivalry encourages progress. The East India Company was suffering from the decaying, deadening influence of its exclusive privilege and this went on till about the middle of the eighteenth century. The first half of that century is decadent, not merely with regard to India, but most things English. Art was at its lowest, manners were never less sincere, morals were corrupt, politics were little better. It almost seems as if England had lost the fair wind which had carried her through the Tudor times and then become gradually becalmed in the Stuart era till she rolled about with no progress, making only stern-way. And then, after a period of profitless existence, she seems to have picked up another breeze which has sent her along through the successful industrial age, the great wars, the Victorian and Edwardian years of prosperity up till to-day. The end of the eighteenth century is a period quite different from its first portion. And if it was so generally it could scarcely be different in regard to a corporation directed and managed by men of this period.

Just for a moment let us go back to that time when the East India Company decided it were best to close the Deptford yard and obtain their ships ready built. Now as time went on the hiring of ships to the Company for this Eastern trade led to great abuses. Officially the Company did no longer build their ships. But the Company’s directors used to build them privately and then hire them out to the Company, to the great personal gain of the directors. There were few other ships big enough or strong enough. The directors would know how many to build and to what extent prices could be demanded from the Company: and altogether they feathered their nests very nicely. This went on till the year 1708, when the old and new East India companies had become amalgamated. After this year the directors were prohibited by Act of Parliament from supplying ships to the Company.

Instead of the former corrupt arrangement, ships for the East India Company were to be hired in the future by open tender from the commander and two owners. But here again was a difficulty. Inasmuch as a special type of stalwart ship was required for this trade, the supply was small and in the hands of a ring called the Marine Interest. Therefore the Company was just about as badly off as before. And throughout the eighteenth century there was one continued contest between the East India Company and the shipbuilders, who did their level best to fleece the former as it had been fleeced by the State at different dates.

A BARQUE FREE-TRADER IN THE LONDON DOCKS.

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