The Directors have observed nothing concerning the loans: they probably reserved that matter for future consideration., Mak

In no affair has the connexion between servants abroad and persons in power among the proprietors of the India Company been more discernible than in this. But if such confederacies, cemented by such means, are suffered to pass without due animadversion, the authority of Parliament must be come as inefficacious as all other authorities have proved to restrain the growth of disorders either in India or in Europe.

THE Reports made by the two Committees of the House, which sat in the years 1772 and 1773* of the state and conduct of the inland trade of Bent gal up to that period have assisted the inquiries of Your Committee with respect to the third and last article of monopoly, viz. that of Salt; and made it unnecessary for them to enter into so minute a detail on that subject as they have done on some others!ls hen gradul and pins and sell it-ví stolɔd sa

Your Committee find, that the late Lord Clive constantly asserted, that the Salt-trades in Bengal had been as monopoly time immemorial that it ever was and ever must be a monopoly; and that 138)

Coja

page 106.

Coja Wazid, and other merchants long before him, had given to the Nabob and his ministers two hun dred thousand pounds per annum for the exclusive privilege. The Directors, in their letter of the 24th December 1776, paragraph 76, say, b“ thát "sit has ever been in a great measure an exclusive “trade."433 -The Secret Committee report, that under the 4th Report, Government of the Nabobs the duty on Salt made in Bengal was two and an half per cent. paid by Mussulmen, and five per cent. paid by Gentoos. On the accession of Mir Cassim in 1760, the claim of the Company's servants to trade in Salt, duty-free, was first avowed. Mr. Vansittart made an agreement with him, by which the duties should be fixed at nine per cent. The Council annulled the agreement, and reduced the duty to two and an half per cent. On this, Mir Cassim ordered that no customs or duties whatsoever should be collected for the future. But a majority of the Council (22d March 1763) resolved, that the making the exemption general was a breach of the Company's privileges; and that the Nabob should be positively required to recall it, and collect duties as before from the country merchants, and all other persons, who had not the protection of the Company's dustuck. The Directors, as the evident reason of the thing and as their duty required, dis approved highly of these transactions, and ordered

(8th February 1764) a final and effectual stop to be put to the inland trade in Salt, and several other articles of commerce. But other politicks and other interests prevailed; so that in the May fol lowing a General Court resolved, that it should be recommended to the Court of Directors to reconsider the preceding orders. In consequence of which the Directors ordered the Governour and Council to form a plan, in concert with the Nabob, for regulating the inland trade.

On these last orders Lord Clive's plan was formed in 1765. for engrossing the sole purchase of Salt, and dividing the profits among the Company's senior servants. The Directors, who had hitherto reluctantly given way to a monopoly under any idea, or for any purposes, disapproved of this plan, and on the 17th May 1766 ordered it to be abolished; but they substituted no other in its room! In this manner things continued until November of Secrecy 1767, when the Directors repeated their orders Appendix, for excluding all persons whatsoever, excepting the

Par. 36. Vide 4th Report from Com.

in 1773,

N° 45.

natives only, from being concerned in the inland trade in Salt; and they declared, that (vide par. go)" such trade is hereby abolished and put a final "end to."In the same letter (par. 92,) they or dered that the Salt trade should be laid open to the natives in general, subject to such a duty as might produce one hundred and twenty thousand pounds a year. This policy was adopted by the Legislature.

In the Act of 1773, it was expressly provided, that it should not be lawful for any of his Majesty's sub jects to engage, intermeddle, or be any way concerned, directly or indirectly, in the inland trade in Salt, except on the India Company's account.

any

Under the positive orders of the Company, the Salt trade appears to have continued open from 1768 to 1772. The Act indeed contained an exception in favour of the Company, and left them a liberty of dealing in Salt upon their own account. But still this policy remained unchanged, and their orders unrevoked. But in the year 1772, without instruction from the Court of Directors indicating a change of opinion or system, the whole produce was again monopolized, professedly for the use of the Company, by Mr. Hastings.-Speaking of this plan, he says: (letter to the Directors, 22d February 1775) "No new hardship has been im"oposed upon the Salt manufacturers by taking the "management of that article into the hands of "Government; the only difference is, that the "profit, which was before reaped by English gen"tlemen, and by Banians, is now acquired by the "Company"-In May 1766, the Directors had Vide Sel condemned the monopoly on any conditions what Letter to "At that time, they thought it neither "consistent with their honour nor their dignity to 36, in 4th "promote such an exclusive trade." "They con- from Com. "sidered it too as disgraceful, and below the dignity in 1773,

soever.

Bengal,

17th May

1776, Par.

Report

of Secrecy,

Appendix,

"of No 45.

Par. 37.

of their present situation, to allow of such a "monopoly; and that, were they to allow it under

66

any restrictions, they should consider themselves

as assenting and subscribing to all the mischiefs, "which Bengal had presented to them for four

Notwithstanding this solemn declaration, in their letter of 24th December 1776 they approve the plan of Mr. Hastings, and say "that the monopoly on its present footing can be no considerable grievance to the country," &c.

This however was a rigorous monopoly. The account given of it by General Clavering, Colonel Monson, and Mr. Francis, in their Minute of 11th January 1775, in which the situation of the Molungees, or persons employed in the Salt manufacture, is particularly described, is stated at length in the Appendix. Mr. Hastings himself says, "The power of obliging Molungees to work has "been customary from time immemorial."

Nothing but great and clear advantage to Government could account for, and nothing at all perhaps could justify, the revival of a monopoly thus. circumstanced. The advantage proposed by its revival was the transferring the profit, which was before reaped by English gentlemen and Banians, to the Company. The profits of the former were not problematical. It was to be seen what the effect would be of a scheme to transfer them to the

latter,