I shall, hereafter, have occasion to show the correctness of his conjectures, with respect to the benefit which might be derived from his presence in England on the expected occurrence of a peace with France.

To understand the causes of the contradictory orders from England, which weakened and distracted the governments in India, it will be necessary to take a short view of the actual state of the Court of Directors, and of that of the proprietors at this period.

Mr. Payne was Chairman, and at the head of the majority by whom the government of rotation was first appointed. To judge from the facts before us, and, indeed, from his published narratives, we should believe Mr. Holwell to have been the person who first suggested this expedient. He had proceeded to England soon after he was released by Suraj-u-Dowlah; and his claims and sufferings appear to have made a considerable impression upon many of the Directors. Still he was too young a servant to be nominated governor; but the plan of the rotation government gave him a share of that dignity which he could not hope to hold alone; and he himself informs us, that the Directors, after protracted discussions upon this subject, agreed unanimously[[87]] in the scheme of vesting the government of Bengal in four of their servants, Messrs. Watts, Manningham, Becher, and Holwell; but this resolution, as stated at the period, was only intended as a temporary measure.

A general reform of the settlement of Fort William was subsequently taken into consideration, and a plan was adjusted at various meetings, at which none were present but the two Chairmen, the Secretary, and Mr. Holwell.[[88]]

About this period, violent opposition arose to the Chairman and his friends, headed by his deputy Mr. Lawrence Sulivan, Mr. Stephen Law, and several men of talent. This party were indefatigable in their exertions; and, although they were a minority in the Court of Directors, they had great influence with the Proprietors. They early declared themselves decidedly hostile to the continuance of the rotation government; and when the accounts of Clive's successes led to his nomination, Mr. Sulivan proposed that a resolution should be added, to the following effect:—

"That the important changes in their affairs in Bengal, made the expedient of the rotation no longer needful, but that Mr. Watts should be appointed to succeed the Colonel."

After a debate on this question, in which the opposing parties were very violent, Colonel Clive was nominated, but to be succeeded, on leaving India, by the rotation government; and the proposed reforms in the government of Fort William were directed to be carried into execution. The minority, undismayed by their defeat, had recourse to the General Court, and carried by their influence the proposition,—

"That the rotation of four should be abolished, and the government of Bengal be conducted by a single Governor and Council as heretofore."

The Court of Proprietors, at the same time that it came to this resolution, declared it had no intention of interfering with the appointment of the Governor and Council, which belonged wholly to the Court of Directors; in which this subject gave rise to further discussions. The names of Mr. Watts and Mr. Holwell were brought forward as successors to Clive; and the majority being in favour of the latter, he was elected. This choice was no sooner made than the Chairman read a letter he had previously received from Mr. Holwell, requesting, should he be elected, to decline the station in favour of Mr. Manningham, who was (he stated) senior, and whose claims were so great, that, if he were superseded, he would in all likelihood retire; and his loss would be seriously injurious to the public service.

Those who opposed Mr. Holwell's elevation gave him little credit for this display of self-denial. It was certain, they alleged, that Mr. Manningham was on the eve of his return to England, and that Mr. Holwell, if appointed his successor, would have both the station, and the merit of having waived his own pretensions in favour of a much older and more deserving public servant. Whatever were his motives, his suggestion was attended to. Mr. Manningham was (in the event of Clive's leaving India) nominated Governor; and Mr. Holwell and Mr. Becher were appointed to be, in their turn, his successors. Affairs continued in this state until the general election of Directors in April, 1758, when the minority brought forward a list of Directors in opposition to that of the majority, or house-list. A violent contest arose, but the ballot terminated in favour of the late minority; whose friends in the new direction outnumbered their opponents. From this date, Mr. Sulivan, who became Chairman, acquired an influence and power in the India House which he long maintained. He was, at this period, greatly indebted to Clive, who gave him all his support, believing him, from his talents and his former residence in India, more fitted than any of his competitors for the management of the affairs of the Company.