that a fum to affect a great and opulent nation, at the end of a ten years peace; when France, notwithstanding her defeats, diftreffes, and public infolvency, had the good policy to make a provision for her navy captains? The large fums which in the last feffion had been voted for virtù, and other purposes of much lefs national concernment, were placed in contrast to the present parfimonious humour.

Upon a divifion, the petition was received by a majority of nine; the numbers being 154 to 145. Upon which occafion, the first lord of the treasury found himself again in a minority *. An addrefs was foon after prefented to his majesty, that an addition of two fhillings a day might be made to the half-pay of navy captains, which brought it to about 110l. per annum. When the bill came out of the committee, Lord North not only fupported it, but propofed that it should be extended to encreafing the pay of captains in the navy, commanding fifth and fixth rates, in actual service; but this amendment was over-ruled.

Notwithstanding the deplorable ftate of affairs in the Eaft-Indies, a twelvemonth had paffed in which parliament had directed its attention, merely to negative the plans for reformation, which the directors and proprietary had adopted; during which time, a wide fcope was given to that spirit of rapacity which universally prevailed in India. The time was however, at length arrived, for the minister to change his ground; whilft fuch events had turned up, as tended to gratify every with which the most ambitious ftatefman could form.

At a general court of proprietors of India ftock, held on the twenty-fourth of February, 1773, the queftion was de* Lord North voted against Mr. Grenville's bill to regulate controverted elections, and for the Eaft-India Company's recruiting bill.

cided by ballot, whether an application fhould be made to parliament for a loan of a million and a half, or so much as fhould be wanted, by inftallments, for four years, at four pounds per cent. per annum, with liberty of repaying the fame as soon as the Company may be able, by payments of not less than 300,000 l. it was carried 405 to 199.

In confequence of which refolution, a petition was prefented to parliament for that purpose; and it was therein farther propofed, that the Company should not make a dividend of more than fix per cent. until one half of the proposed loan was discharged; when they might raise their dividend to eight per cent. and after the whole loan was discharged, that the furplus of the net profits arising in England above the faid dividend, fhould be appropriated to the payment of the Company's bond debt, until it was reduced to a million and a half; and from thence, that the furplus profits should be equally divided between the public and the Company. It was alfo requested, that the Company should be released from the heavy penal interest incurred by the non-payment of money, owing in confequence of the late acts for the indemnities on teas, and alfo difcharged from the annual payment of 400,000l. to the public, for the remainder of the five years specified in the agreement.

A committee of the whole houfe proceeded to take into confideration the affairs of the Eaft-India Company *. Lord North entered on the bufinefs, by disclaiming the idea that the Company in their present exigency, had a claim of right upon the public for relief. He represented the vaft fums which had been paid into the Exchequer by

March 9, 1773.

the

;

the Company, as bearing no proportion to the revenues drawn from the Afiatic territories; the depredations of their fervants in India, neither the minifter nor the house of Commons, were any ways acceffary to, or answerable for but the granting relief to the Company, was a matter of neceffary policy and expediency, although in no degree a claim of right or juftice. He then entered largely into the ftate of the Company, and declared it to be a fact, that the directors had propofed a dividend at the very time when the Company was in little better than an infolvent ftate; and before the next September, the Company would be deficient 1,300,4251. To extricate this great commercial body from so alarming a fituation, various plans had been fuggefted; one was, that the Company might be empowered to borrow money upon bond, to the amount of what they wanted; but he difapproved of that method, as they had already ftretched their credit too far in that way. Funding the Company's bills was another expedient named; but this his lordship said, would not answer the purpose, because it would not bring immediate relief. So that upon the whole, he thought it for the intereft of the public, that the relief granted to the Company should come from the public; at the fame time, taking the necessary precautions to prevent the like diftreffes befalling the Company in future; he therefore proposed two refolutions to be adopted by the house, by which a loan of 1,400,000l. fhould be granted, and not more than fix per cent. be divided among the proprietors until the whole fhould be repaid. That the Company be allowed to divide no more than seven per cent. until their bond debt be reduced to a million and a half; and no more than eight per cent. before the participation of profits between the public and the Company shall take place. The latter propofition was rejected. At the fame time, his Lordship waved the parH 4 ticular

picular difcuffion of the question, concerning the Company's claim of exclufive right to its territorial poffeffions; yet infifted on a prior right in the ftate, from whence he inferred the juftice and legality of interpofing its authority in all cafes, in the Company's affairs; and fupported his affertion by the opinion of very found lawyers, whom he styled the luminaries of the age, who had declared that such territorial poffeffions as the subjects of any state fhall acquire by conqueft, are virtually the property of the ftate, and not of thofe individuals who acquire them.

Although the question of right in the Company to receive the revenues from Bengal, was not, at that time, the fubject of debate, yet fuch a fentiment being incidentally delivered, by the premier, drew forth replies; and it was infifted, that when the state makes a folemn and authentic delegation of its authority to a diftinct and feparate body, it cannot, confiftently with juftice and public faith, lay claim to poffeffions which that body may legally acquire. And it was infifted, that the Company's poffeffions in India were not strictly conquefts, but farms, held from the prince, who was their proprietor and rightful owner; and that a queftion of property of that nature was to be decided in a court of juftice, and was not a proper subject of difcufion for the house of Commons, where the public, who was a party in the cause, would fit in judgment,

At length, after the subject in general had been much difcuffed, Lord North informed the houfe*, that in answer to the petition of the Eaft-India Company of the 2d of March, the king had left the fole determination of the affair to that Houfe: his lordship then proceeded

* April 5.

to

to state the propofitions which he had to make to the house. The first of which was, "That it is the opinion of this houfe, it will be more beneficial to the public, and the Eaft-India Company, to let the territorial acquifitions remain in the poffeffion of the Company for a limited time, not exceeding the terms of fix years †, to commence from the agreement between the public and the company."

"That no participation of profits shall take place between the public and the Company, until after the repayment of the 1,400,000l. advanced to the Company, and the reduction of the Company's bond debt to a million and a half."

"That after the payment of the loan advanced to the Company, and the reduction of their bond debt to the fum fpecified, three-fourths of the net fuplus profits of the Company at home, above the fum of eight per cent. upon their capital stock, shall be paid into the Exchequer, for the ufe of the public; and the remaining one-fourth fhall be fet apart, either for farther reducing the Company's bond debt, or for compofing a fund for the discharge of any contingent exigencies the Company may labour under,"

Thefe conditions, propofed by the minifter, differed in many particulars from those offered by the Company: an effential difference was, in the diftribution to be made of the furplus profits between the Company and the public, after the reduction of their bond debts, and being able to divide to the proprietary eight per cent. per ann. on their capital. Indeed this was not the first inftance, in which parliament interfered to regulate the conduct of the Company; for in the

Which was the unexpired term of their charter.

year