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.
AMERICAN TAXATION.
Soon after the reassembling of parliament Mr. Grenville, intent upon taxing America, had proposed saddling that country for the support of troops, &c., and the chancellor of the exchequer, in reply, pledged himself to the house to find a revenue in the colonies sufficient to meet the expenses. Accordingly, during the session, he introduced a bill to lay certain duties on glass, tea, paper, and painters’ colours, imported from Great Britain into America. This bill was carried through both houses with the greatest facility, and another act passed with equal facility, which placed these duties, and all other customs and duties in the American colonies, under the management of the king’s resident commissioners. These acts were followed by one more justifiable. The assembly of New York had refused to comply with the statute requiring a grant of additional rations to the troops stationed in that province; and the refractory disposition of the colonists made it manifest that their intention was to deny the jurisdiction of Great Britain altogether. It was evident that a spirit of infatuation had taken deep root in America, and it was easy to foresee that confusion and bloodshed would one day ensue. Under these circumstances, and with a view of checking the onward progress of the march of insubordination, an act was passed, prohibiting the governor, council, and assembly of New York from passing any legislative act, till satisfaction should be given as to the treatment of the commissioners and troops, and submission paid to the Mutiny Act. But no measure which the parliament of England could devise, whether coercive or conciliatory, could tame the fierce spirit which the Stamp Act had created, and the new scheme of duties on imports was calculated to confirm in hostility to Great Britain. The breach grew wider and wider, until at length it was past all remedy.
CHANGES IN THE MINISTRY.
Parliament was prorogued on the 2nd of July, with a speech from his majesty, in which he acknowledged annuities of £8000, which had been settled during this session on each of the king’s brothers; namely, the Dukes of York, Gloucester, and Cumberland. During the recess, an event occurred which threatened to overthrow the tottering cabinet. This was the death of Charles Townshend, who suddenly expired on the 4th of September. But before his death, there were signs of a dissolution of the ministry, and Townshend was actually engaged in the projection of a new administration. Lord Northington and General Conway had both expressed a wish to resign, and the Duke of Grafton showed a greater disposition for pleasure than for business, whence negociations were opened by Townshend with the Rockingham party.
His death set these aside, but several changes soon afterwards took place among the great officers of state. The Earl of Chatham, afflicted with the gout, and indisposed to business, still remained idle; and the king therefore, authorized the Duke of Grafton to make the necessary changes in the cabinet. All that could be done, however, before the meeting of parliament, was to entrust the seals of the office of chancellor of the exchequer to Lord Mansfield, chief justice of the king’s bench, and to empower him to renew negociations with the Duke of Bedford, in which the Duke of Grafton had been unsuccessful.
The ministry was in this unsettled state when the parliament met in November. The principal point recommended to its attention by his majesty was the high price of corn, with the consequent suffering of the poor. This subject was also impressed on parliament by strong petitions from all parts of the country; and an act was passed, extending the prohibition against exportation, and encouraging the importation of grain.
In the midst of these proceedings, Lord North was prevailed upon to accept the chancellorship of the exchequer; Mr. Thomas Townshend, cousin of the late Charles Townshend, succeeded him as joint paymaster of the forces; and his place, as one of the lords of the treasury, was given to Mr. Jenkinson. Soon after this, General Conway and Lord Northington insisted on resigning, and fresh overtures were made to the Duke of Bedford. That nobleman having been gained over, Earl Gower became president of the council in the place of Lord Northington, and Lord Weymouth secretary of state in lieu of Conway. At the same time the Earl of Hillsborough was appointed third secretary of state, which was a new office; and he was succeeded as joint paymaster with Lord North, by the Duke of Bedford’s ally, Lord Sandwich. General Conway was appointed lieutenant-general of the ordnance; and the ministry, thus reconstructed, took the name of the Duke of Grafton’s administration. As for the Earl of Chatham he was still a cipher, keeping aloof at Bath, or at Burton Pynsent, or at Hayes in Kent, where he would neither see nor speak to anybody. But he still retained the privy seal, and still retained the emoluments of office, and the king was afraid to deprive him of them.