The treaty into which he then entered contained an important stipulation that the Company should assist him to recover the territories usurped by his late ally Sûjah-daula, Wazîr of Oude.
Hearing of this the Wazîr immediately prepared for resistance by joining forces with Ghâzi-ud-din, the murderous minister at Delhi, and with some bands of Rohillas and Mahrattas.
But they were poor allies, and Clive, coming to the problem with his clear head, proceeded to settle it with a high hand. Sûjah-daula was left with his territories, save for the district around Allahabâd, which was ceded to Shâh-Âlam, the so-called emperor, who was also to receive £260,000 a year as the revenue of Bengal. This was to be payable, not as in the past, by the Nawâb, but by the East India Company itself, who thus became the real masters of the country, and so responsible for its administration, its defences; the Nawâb, Nujâm-ud-daula, reverting to the position of pensioner, a position which he accepted gladly with the remark: "Thank God! I shall now have as many dancing-girls as I please!"
That the bargains were hard all round none can deny, but it is difficult to see, as has been stated, that Clive derived any pecuniary benefit from them.
On the contrary, it may be observed that special precautions were taken to ensure the legality of the compromise which Clive had entered into with the Directors regarding his jâghir, when the public interests, by recalling him to duty, had made some quicker settlement of the question than that of a Chancery suit necessary. Now this compromise, which gave him the revenues for ten years only, or till his death, whichever was the shortest period, was not very favourable to Clive. Its continuance, therefore, should not be urged, as it often is, as proof of his rapacity.
The problem which next employed him was one of extreme difficulty. It was an enquiry into the conduct of officers in regard to their new covenants which prohibited the receiving of presents. As a result of this, ten officials who were dismissed for corruption went naturally to join the ranks of Clive's many enemies.
The question of private trade still remained, and was more difficult of settlement. For the salary of a member of Council was but £350, and he could not keep up the dignity of his position on less than £3,000.
Clive settled this in a somewhat makeshift way, but it is worthy of note that though as governor his pay was largely enhanced by the new scheme, he did not personally take one penny of it, for he had declared his intention of not deriving any pecuniary advantage from his position. The money was spent in augmenting the salaries of his office. All this caused much indignation; many of the Council retired, and to fill their places Clive had the temerity to import outsiders. No sooner was this over than almost every officer of the army mutinied over the withdrawal of double batta, or war allowances. No less than two hundred commissions were resigned, and the outlook was black.
Clive set his teeth, and though one of the brigades sent in their resignations en bloc in the very face of an enemy, he won through by indomitable firmness, unending patience. The officers of the European regiment at Allahabâd gave most trouble, but a battalion of sepoys, marching 104 miles in fifty-four hours, brought them to reason sharply.
So, when the fight was over, and the ringleaders--only six officers--were tried and punished most leniently (the Mutiny Act of the Company's service proving defective), Clive founded the military fund which still goes by his name, and which has been, and is still, a boon to many a poor widow. Its nucleus was Clive's gift of £63,000.