Parliament reassembled for the regular session on the 4th of February, fully alive to the importance of attending to all matters bearing on the welfare of India. Earl Grey, on the 11th, presented to the House of Lords the elaborate petition from the East India Company, lately adverted to. Characterising this as a ‘state paper deserving the highest commendation,’ the earl earnestly deprecated the abolition of the Court of Directors, and the transfer of their authority to the ministry of the day; grounding his argument on the assumption that the interposition of an independent body, well informed on Indian affairs, between the government and the natives of that country, was essential to the general welfare. He admitted the need for reform, but not abolition. The Duke of Argyll, on the part of the government, admitted that the Company’s petition was temperate and dignified, but denied that its reasoning was conclusive. The Earl of Ellenborough, agreeing that the Queen’s name would be powerfully influential as the direct ruler of India, at the same time doubted whether any grand or sweeping reform ought to be attempted while India was still in revolt. The Earl of Derby joined in this opinion, and furthermore complained of discourtesy shewn by the ministers toward the directors, in so long withholding from them a candid exposition of the provisions of the intended measure.

On the following day, the 12th of the month, the long-expected bill was introduced to the House of Commons by Lord Palmerston—or rather, leave to bring in the bill was moved. The first minister of the Crown, in his speech on the occasion, disowned any hostility to the Company, in reference either to the Revolt or to matters of general government. He based the necessity for the measure on the anomaly of the Company’s position. When the commercial privileges were withdrawn, chiefly in 1833, the Company (he urged) became a mere phantom of what it had been, and subsided into a sort of agency of the imperial government, without, however, responsibility to parliament. Admitting the advantages of checks as securities for honesty and efficiency in administrative affairs, he contended that check and counter-check had been so multiplied in the ‘double government’ of India, as to paralyse action. He considered that complete authority should vest where complete responsibility was expected, and not in an irresponsible body of merchants. His lordship concluded by giving an outline of the bill by which the proposed changes were to be effected.

As the Palmerston Bill, or ‘India Bill, No. 1,’ as it was afterwards called, was not passed into a law, it will not be necessary to reprint it in this work; nevertheless, to illustrate its bearing on the subsequent debates, the pith of its principal clauses may usefully be given here: The government of the territories under the control of the East India Company, and all powers in relation to government vested in or exercised by the Company, to become vested in and exercised by the sovereign—India to be henceforth governed in the Queen’s name—The real and personal property of the Company to be vested in Her Majesty for the purposes of the government of India—The appointments of governor-general of India, with ordinary members of the Council of India, and governors of the three presidencies, now made by the directors of the Company with the approbation of her Majesty, and other appointments, to be made by the Queen under her royal sign-manual—A council to be established, under the title of ‘The President and Council for the Affairs of India,’ to be appointed by her Majesty—This council to consist of eight persons, exclusive of its president—In the first nomination of this council, two members to be named for four years, two for six, two for eight, and two for ten years—The members of council to be chosen from among persons who had been directors of the East India Company, or ten years at least in the service of the Crown or Company in India, or fifteen years simply resident in India—Members of council, like the judges, only to be removable by the Queen, on an address from both Houses of Parliament—The president of the council eligible to sit in the Commons House of Parliament—Four members of council to form a quorum—Each ordinary member to receive a yearly salary of £1000; and the president to receive the salary of a secretary of state—The council to exercise the power now vested in the Company and the Board of Control; but a specified number of cadetships to be given to sons of civil and military servants in India—Appointments hitherto made in India to continue to be made in that country—Military forces, paid out of the revenues of India, not to be employed beyond the limits of Asia—Servants of the Company to become servants of the crown—The Board of Control to be abolished.

Such was the spirit of the bill which Lord Palmerston asked leave to introduce. Mr T. Baring moved as an amendment, ‘That it is not at present expedient to legislate for the government of India.’ Thereupon a debate arose, which extended through three evenings. The government measure was supported by speeches from Lord Palmerston, Sir Erskine Perry, Mr Ayrton, Sir Cornwall Lewis, Mr Roebuck, Mr Lowe, Mr Slaney, Sir W. Rawlinson, Mr A. Mills, Sir Charles Wood, and Lord John Russell; while it was opposed on various grounds by Mr T. Baring, Mr Monckton Milnes, Sir J. Elphinstone, Mr Ross D. Mangles, Mr Whiteside, Mr Liddell, Mr Crawford, Colonel Sykes, Mr Willoughby, Sir E. B. Lytton, and Mr Disraeli. The reasonings in favour of the government measure were such as the following: That the proper time for legislation had come, when the attention of the country was strongly directed to Indian affairs; that all accounts from India shewed that some great measure was eagerly expected; that it was dangerous any longer to maintain an effete, useless, and cumbrous machine, which the Court of Directors had virtually become; that the Company’s ‘traditionary policy’ unfitted it to march with the age in useful reforms; that as the Board of Control really possessed the ruling power, the double government was a sham as well as an obstruction; that the princes of India felt themselves degraded in being the vassals and tributaries of a mere mercantile body; that, such was the anomaly of the double government, it was possible that the Company might be at war with a power with which her Majesty was at peace, thus involving the nation in inextricable embarrassment; that, with the exception of a very small section of the covenanted civil servants, the European community and the officers of the Indian army would prefer the government of the crown to that of the Company; that the natives of India having been thrown into doubt concerning the intentions of the Company to interfere with their religion, some authoritative announcement of the Queen’s respect for their views on that subject would be very satisfactory; and that as the native Bengal army had disappeared, as India must in future be garrisoned by a large force of royal troops, and as the military power would then belong to the crown, it was desirable that the political power should go with it. Among the pleas urged on the opposite side were such as follow: That the natives of India would anticipate an increased stringency of British power, under the proposed régime; that the ministerial influence and patronage, in Indian matters, would be dangerous to England herself; that as the Whig and Conservative parties had both supported the system of double government in the India Bill of 1853, there was no reason for making this sudden change in 1858; that before any change of government was effected, it was imperatively necessary that an inquiry should be made into the causes and circumstances of the Revolt; that the direct exercise of governing power by a queen, formally designated ‘Defender of the Faith,’ could not be agreeable either to the Hindoos or the Mohammedans of India, whose ideas of ‘faith’ were so widely different from those of Christians; that, as all previous organic changes in the administration of the government of India had been preceded by an inquiry into the character of that government, so ought it in fairness to be in the present case; that if the proposed change were effected, European theories and novelties, owing to the pressure of public opinion on the ministry, would be attempted to be grafted on Asiatic prejudices and immobility, without due regard to the inherent antagonism of the two systems; and that the enormous extent, population, revenue, and commerce of India ought not to be imperiled by a measure, the consequences of which could not at present be foreseen.

This debate ended on the 18th; the House of Commons, by a majority of 318 to 173, granting leave for the introduction of the bill—it being understood that a considerable time would elapse before the second reading, in order that the details of the measure might be duly considered by all who took an interest in the matter.

Before, however, any very great attention could be given to the subject, either in or out of parliament, a most unexpected change took place in the political relations of the government. The same minister who, on the 18th of February, obtained leave to bring in the India Bill, was placed on the 19th in a minority which led to the resignation of himself and his colleagues. Circumstances connected with an attempted assassination of the Emperor of the French induced the Palmerston government to bring in a measure which proved obnoxious to the House of Commons; the measure was rejected by 234 against 219, and the government accordingly resigned. So far as concerned the immediate effect, the most important fact connected with India was the offer by the Earl of Derby, the new premier, of the presidency of the India Board to the Earl of Ellenborough. This nobleman had long been in collision with the East India Company and its civil servants. Twice already had he been president of the Board of Control, and in 1842-3-4 he had filled the responsible office of governor-general of India. In both offices, and at all times, he had cherished as much as possible the royal influence in India against the Company’s, the military against the civil. As a consequence, his enemies were bitter, his friends enthusiastic. The author of an anonymous ‘red pamphlet,’ which attracted much notice during the Revolt, spoke of the Earl of Ellenborough as the one great man who could alone be the saviour of India—as the chivalrous knight who would shiver to atoms the ‘vested rights’ and ‘traditionary policy’ of the Court of Directors. It was natural, therefore, that the accession of the earl to the new government should be regarded as an important matter, either for good or evil.

It speedily became apparent that the new president of the Board of Control would find difficulty in framing a line of proceeding on Indian affairs. His own predilections were quite as much against the Company, as those of his predecessor; but many of his colleagues in the Derby government had committed themselves, when out of office, to a defence of the Company, and to a condemnation of any immediate alteration in the Indian government. Either he must change his opinions, or they belie their own words. The Court of Directors would fain have expected indulgent treatment from the Derby administration, judging from the speeches of the two preceding months; but their past experience of the Earl of Ellenborough threw a damp over their hope.

Three weeks after the vote which occasioned the change of government, Lord Palmerston proposed the postponement of the second reading of his India Bill until the 22d of April—a further lapse of six weeks; and this was agreed to. He would not withdraw the bill, because he still adhered to its provisions; he would not at once proceed with it, because his opponents were now in office, and he preferred to see what course they would adopt. The fate of India was thus placed in suspense for several weeks, simply through a party struggle arising out of French affairs; the great question—’Who shall govern India?’—was made subservient to party politics.

Although Lord Palmerston had named the 22d of April as the day for reconsidering his India Bill, this did not tie down the Derby ministry to the adoption of any particular line of policy. After many discussions in the cabinet, it was resolved that the ministers should ‘eat their words’ by legislating for India, although it had before been declared a wrong time for so doing; and that, throwing Lord Palmerston’s bill aside, a new India Bill should be introduced.

Accordingly, on the 26th of March, Mr Disraeli, the new Chancellor of the Exchequer, moved for leave to bring in that which was afterwards called the ‘India Bill No. 2.’ As in a former instance, this bill may be most usefully rendered intelligible by a condensed summary: A secretary of state for India, to be appointed by the Queen—This secretary to be president of a Council of India—The council to consist of eighteen persons, nine nominated and nine elected—The nominated councillors to be appointed under the royal sign-manual by the crown, and to represent nine distinct interests—Those nine interests to be represented as follow: the first councillor to have belonged for at least ten years to the Bengal civil service; the second to the Madras service; the third to the Bombay service; and the fourth to the Upper or Punjaub provinces, under similar conditions; the fifth to have been British resident at the court of some native prince; the sixth to have served at least five years with the Queen’s troops in India; the seventh, to have served the Company ten years in the Bengal army; and the eighth and ninth, similarly in the Madras and Bombay armies—The nine nominated members to be named in the bill itself, so as to give them parliamentary as well as royal sanction—The remaining eight members of the council to be chosen by popular election—Four of such elected members to be chosen from among persons who had served the Crown or the Company at least ten years in any branch of the Indian service, or had resided fifteen years in India; and to be chosen by persons who had been ten years in the service of the Crown or the Company, or possessed £1000 of India stock, or possessed £2000 of capital in any Indian railway or joint-stock public works—The other five of such elected members to be chosen from among persons who, for at least ten years, had been engaged in the commerce of India, or in the export of manufactured articles thither; and to be chosen by the parliamentary constituencies of five large centres of commerce and manufactures in the United Kingdom, namely, London, Liverpool, Manchester, Glasgow, and Belfast—the Secretary of State for India to have the power of dividing the council, thus constituted, into committees, and to exercise a general supervision over these committees—The secretary alone, or six councillors in union, to have power to summon a meeting of the council—The councillors not to be eligible to sit in parliament, but to have each £1000 per annum for their services—The patronage heretofore exercised by the East India Company to be now exercised by the Council—The army of India not to be directly affected by the bill—The revenues of India to bear the expenses of the government of India—A royal commission to be sent to India, to investigate all the facts and conditions of Indian finance.