"The situation of affairs requires that you should be very circumspect and active. You are appointed Governor at a very critical time, when things are suspected to be almost at the worst, and when a general apprehension prevails of the mismanagement of the Company's affairs. The last parliamentary inquiry has thrown the whole state of India before the public, and every man sees clearly, that as matters are now conducted abroad, the Company will not long be able to pay the 400,000l. to Government. The late dreadful famine, or a war, either with Sujah-u-Dowlah, or the Mahrattas, will plunge us into still deeper distress. A discontented nation and disappointed Minister will then call to account a weak and pusillanimous Court of Directors, who will turn the blow from themselves upon their agents abroad; and the consequences must be ruinous both to the Company and the servants. In this situation you see the necessity of exerting yourself in time, provided the Directors give you proper powers, without which, I confess, you can do nothing; for self-interest or ignorance will obstruct every plan you can form for the public good.

"You are upon the spot, and will learn my conduct from disinterested persons; and I wish your government to be attended, as mine was, with success to the Company, and with the consciousness of having discharged every duty with firmness and fidelity. Be impartial and just to the public, regardless of the interest of individuals, where the honour of the nation, and the real advantage of the Company are at stake, and resolute in carrying into execution your determination, which I hope will at all times be rather founded upon your own opinion than that of others.

"The business of politics and finance being so extensive, the Committee should not be embarrassed with private concerns. They ought not, therefore, to be allowed to trade. But their emoluments ought to be so large as to render trade unnecessary to the attainment of a competent fortune. For this purpose I am confident the salt will prove very sufficient. The Society should be formed upon an improvement of the plan which was not perfected in my time. The price to the natives was too great, and so was the advantage to the servants. Reduce both, and I am persuaded there will be no complaint of oppression on the one hand, or want of emolument on the other.

"The Company's servants should all have a subsistence, but every idea of raising a fortune, till they are entitled to it by some years' service, ought to be suppressed. If a general system of economy could be introduced, it would be happy for individuals as well as for the public. The expenses of the Company in Bengal are hardly to be supported. Great savings, I am certain, may be made. Bills for fortifications, cantonments, contracts, &c. must be abolished, together with every extravagant charge for travelling, diet, parade, and pomp, of subordinates. In short, by economy alone the Company may yet preserve its credit and affluence.

"With regard to political measures, they are to be taken according to the occasion. When danger arises, every precaution must be made use of, but at the same time you must be prepared to meet and encounter it. This you must do with cheerfulness and confidence, never entertaining a thought of miscarrying, till the misfortune actually happens; and even then you are not to despair, but be constantly contriving and carrying into execution schemes for retrieving affairs; always flattering yourself with an opinion that time and perseverance will get the better of every thing.

"From the little knowledge I have of you I am convinced that you have not only abilities and personal resolution, but integrity, and moderation with regard to riches; but I thought I discovered in you a diffidence in your own judgment, and too great an easiness of disposition[167], which may subject you insensibly to be led, where you ought to guide. Another evil which may arise from it is, that you may pay too great an attention to the reports of the natives, and be inclined to look upon things in the worst, instead of the best, light. A proper confidence in yourself, and never-failing hope of success, will be a bar to this and every other ill that your situation is liable to; and, as I am sure that you are not wanting in abilities for the great office of Governor, I must add that an opportunity is now given you of making yourself one of the most distinguished characters of this country.

"I perceive I have been very free in delivering my sentiments; but to make an apology were to contradict the opinion I profess to have of your understanding, and to doubt whether you would receive this as a token of my esteem."

"It is, perhaps, unnecessary to add, that this letter, which I have written in the fullest confidence, should be kept entirely to yourself. If a reciprocal communication of our sentiments on India affairs be agreeable to you, you may depend upon my continuing the correspondence in such manner as to show that I am, with the sincerest wishes for your honour and success,

"Dear Sir,
"Your very faithful humble servant,
"Clive."

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