On January 11, 1666,[49] the court of assistants discussed the proposition of granting trading licenses to private individuals. While no action seems to have been taken at that time, it ultimately became the practise of the company to grant such a freedom of trade. On April 9, 1667, a resolution was adopted empowering the committee of seven to issue trading licenses in return for a payment of three pounds per ton.[50] These licenses were obtained by those who desired to carry on trade in their own ships, and also by officers of the company's ships who wished to engage in private adventures. During the course of the war one hears of many such grants to various individuals, among whom was Prince Rupert.[51]
The practise of issuing licenses was interrupted for a short time at the conclusion of the Anglo-Dutch war by a feeble attempt to revive the company's activities. An effort was made to collect arrears on the subscriptions,[52] and on August 21, 1667, the general court ordered that an additional subscription should be opened, and that no more trading licenses should be granted.[53] The only result of this effort was that the duke of York and several others accepted stock of the company in lieu of the bonds which they held.[54] In view of this fact it was decided, January 20, 1668, to resume the policy of granting licenses.[55]
In comparison with the trade conducted by the private adventurers that of the company became quite insignificant. Since the company had much difficulty in supporting its agents on the African coast it ordered, August 28, 1668, that in the future those who received licenses should agree to carry one-tenth of their cargo for the company's account.[56] It was difficult for the company to raise the small sum of money necessary to buy this quota of goods. No one was willing to invest money in the stock of a bankrupt company, and certainly few were desirous of making loans to it when there seemed practically no chance of repayment. In the latter part of 1668 and in the year 1669, several attempts were made to collect the early subscriptions which remained unpaid.[57] This effort was attended with very little success, because the company had ceased to be of importance.[58]
One of the reasons why the company's business was practically neglected during these last years was because many of its members began to trade to Africa as private individuals. A number of men even went so far as to project an organization entirely separate from the company. Finally, in 1667, several members offered to raise a stock of £15,000 to carry on trade to the region of the Gambia River.[59] This proposal was debated by the general court and finally referred to a committee with the stipulation that if adopted the company should be concerned in the stock of the new organization to the extent of £3,000.[60] This arrangement could not be consummated in 1667,[61] but on November 27, 1668, a similar proposition was adopted.[62]
An organization to be known as the Gambia Adventurers was to have the sole trade to northern Africa for a period of seven years, beginning with January 1, 1669. For this privilege they were to pay the Company of Royal Adventurers £1,000 annually, and to be responsible for the expense of the forts and settlements in that region. These places were to be kept in good repair by the Gambia Adventurers, who were to receive compensation from the Royal Company for any settlements.[63] A suggestion for carrying on the trade to the Gold Coast in a similar way received no attention from the general court. The Gambia Adventurers occupied the same house in London with the company, and there seems little doubt but that its members consisted largely of those stockholders of the Royal Adventurers who belonged primarily to the merchant class.[64] It is extremely difficult to estimate the success of the Gambia Adventurers, since their records, if any were kept, have not been preserved. In all probability their trade was largely confined to the important products of the Gambia region, namely elephants' teeth, hides and wax, although several of their ships are known to have gone to the West Indies with slaves.
Since many of the company's stockholders were interested in the Gambia venture the company's business on the Gold Coast was greatly neglected. During the year 1669 the company's trade became so insignificant that, at the suggestion of the king, Secretary Arlington asked the company if it intended to continue the African trade.[65] In answer the company recounted the losses incurred in the Anglo-Dutch war which, it declared, had made it necessary to grant licenses to private traders in order to maintain the forts and factories in Africa. It asked the king to assist the company by paying his subscription, by helping to recover its debts in Barbados, and by granting royal vessels for the protection of the African coast. With such encouragement the company declared that it would endeavor to raise a new stock to carry on the African trade.[66] Receiving no answer to their appeal the members of the company considered various expedients, one of which was to lease the right of trade on the Gold Coast;[67] another was to endeavor to obtain new subscriptions to the company's stock, which seemed impossible because of the fear that the money would be used toward paying the company's debts, and not for the purpose of trade.[68] In fact, it had been only too evident for several years that no additions could be made to the present worthless stock of the company. If the company desired to continue its activities, it would be necessary to have an entirely new stock unencumbered with the claims of old creditors. The main problem confronting the company therefor e was to make an agreement with its clamorous creditors.
On May 18, 1671, a general court of the adventurers approved of a proposition to form a new joint stock under the old charter.[69] The stock of the shareholders, which at this time amounted to £120,200, was to be valued at ten per cent and so reduced to £12,020; this was to form the first item in the new stock. In regard to the company's debts, which amounted to about £57,000, rather severe measures were attempted. Two-thirds of the debts, or £38,000, was, as in the case of the stock, reduced to one-tenth, or £3,800, which was to form the second item in the new stock. The other one-third of the debts, or £19,000, was to be paid to the creditors in full out of the money subscribed by the new shareholders.[70] Adding the cash payment of £19,000 and estimating at par the £3,800 which they were to have in the new stock, the creditors were to receive a little less than thirty-five per cent, of their debts. If they did not accept this arrangement it was proposed to turn over the company's effects to them, and to secure an entirely new charter from the king. As anticipated the plan was unsatisfactory to many of the creditors, because the company proposed to pay the £19,000 in six monthly installments after the subscription for the new joint stock was begun.[71] On October 28, 1671, the preamble and articles under which the new subscription was to be made were approved by the general court, and notice was given to the refractory creditors that they must accept the arrangement within ten days or the king would revoke the company's patent.[72] Although the trouble with the creditors had not been adjusted, subscriptions on the new stock began November 10, 1671. A few weeks later there was held a general court of the new subscribers, at which Sir Richard Ford, one of the most important members of the company and also of the new subscribers, declared that "they should not differ for small matters."[73] Thereupon it was resolved to grant the creditors forty per cent on their debts and the shareholders, as in the previous plan, ten per cent, on their stock.[74] This made a total payment of £34,000 divided as follows: £22,800, forty per cent of the company's debts, which amounted to £57,000; and £11,200, ten per cent of the paid subscriptions, which amounted to about £112,000.[75] In lieu of this payment the stockholders were to cede to the new subscribers the forts and other property in Africa and all the payments due from the Gambia Adventurers during the four remaining years of their contract.
As has been said the articles of subscription were adopted October 28, 1671. They provided for a stock of £100,000 under the old charter, which should be paid to the treasurer of the company in ten monthly payments ending September 25, 1672. As a matter of fact the subscription reached the sum of £110,100. It was also provided that every new subscriber should have one vote in the general court for each one hundred pound share, but that no one should be an officer of the company, unless he had subscribed for four hundred pounds in shares. The subgovernor and the deputy governor were to be aided by a court of assistants, reduced to twenty-four in number, and by a select committee of five instead of the committee of seven as formerly. On January 10, 1672, there was held a general court of the new subscribers, at which the duke of York was elected governor; Lord Ashley, subgovernor; and John Buckworth, deputy governor.[76] The duke of York and Lord Ashley were well known for their interest in colonial affairs. According to the terms of the subscription the deputy governor was to be a merchant and a member of the committee of five, which provision indicated plainly that the company expected Buckworth to manage its business affairs.
Although the new subscription had been made to replace the stock of the old adventurers, there is little evidence that it was regarded as necessary to obtain a new charter. Since the creditors still refused to be satisfied with the concession of forty per cent on their debts, however, the new subscribers hesitated to pay their money which might be used to pay off the old debts.[77] It therefore became necessary to carry out the previous threat against the creditors to induce the king to grant a new charter to the present subscribers, which was done September 27, 1672.[78] This action finally convinced the creditors that they could obtain no better terms than had been offered, and therefore they agreed to accept them and also to surrender all their rights to the patentees of the new charter which was being issued. That the attitude of the creditors was not the only moving force toward a new charter is probable, because the old charter was not adequate to meet the needs of the Royal African Company which was to follow.