O business of moment oc

parliament worth detailing for the remainder of the year 1801, if we except the conversation which arose in consequence of a motion made by sir W. Pulteney, on the subject of the East India trade, and some observations of the right honourable Mr. Grenville on the sailing of the Brest fleet for St. Domingo.

Sir W. Pulteney had, some time previously to his motion, given notice of it, and had repeatedly deferred it on the ground that he understood that the parties were disposed to settle the matter in dispute without the interference of parliament. On the 25th of November, however, finding that there was little prospect of an amicable adjustment on the subject of the free trade between those whose concern it immediately was, he was determined to bring it at length before the house of commons.

Sir W. Pulteney prefaced his motion, relative to the trade between this country and the East Indies, with entering into a com

prehensive historical retrospect of

the East India company. The cause of that institution, he said, was twofold. In the first place, it was the object of government to get an ample loan, in compensation for the exclusive monopoly granted to the company. Secondly, that exclusive charter was granted for this reason, because the trade with India, from the great distance of the latter country, could not possibly be carried on by individuals, but required a confederated capital. In the reign of queen Anne, a larger sum of money was raised by the erection of another company. These two companies were afterwards united and consolidated into one, under the title of the United Company of Merchants trading to the East Indies. At the time the encroachment of foreign companies constituted the principal object of the jealousy of the British traders, the speculation went on prosperously, and was eminently lucrative. But when they departed from their simple character of merchants, and

acquired

acquired territorial possessions, they became subject to considerable losses. So great was the falling off, that the rupee, which was worth upwards of 2s. did not fetch more than 1s. 3d. Things continuing in this adverse train, a bill was, in 1782, brought into parliament, the effect of which went to take the trade out of the company's hands altogether. It is true that this bill did not eventually pass, being thrown out in the lords, after it had gone through the commons, and been read twice in the upper house. But though the bill was lost, the necessity of some system of regulation was universally felt and acknowledged. Under this impression, parliament applied to a milder mode of correction, by the establishment of the board of control. In this state the business continued till the year 1793, when the question of the renewal of the company's charter came on. Particular attention was, on this occasion, devoted to the consideration of the free trade, and many clauses were introduced into the bill relating to that subject. On this point he could not refrain from observing, that all the different governors who had been appointed to the command in the East Indies had, without a single exception, given their opinions in favour of the principle of granting greater facilities to the free trade, which they considered as essential to the very primary interests of the company. The directors of the company, on the contrary, had always set their faces against the proposition, notwithstanding the declared sentiments of their officers, refusing to facilitate the free trade, except in such a way as rendered it 4

impossible for the English trader to enter into a fair competition with foreigners. Acting on the same principle which all his predecessors in the government of India had avowed, lord Wellesley, in the year 1798, granted a greater latitude of permission to the free trade. The directors of the company, however, though they had not been able to substantiate any proof of disadvantage which had accrued from the system, wrote against it very forcibly to lord Wellesley; in consequence of which, his lordship, in 1799, was more tenacious of granting facilities to the free trade. In the following year, 1800, lord Wellesley found himself, however, under the necessity of again resorting to his former principle, which produced strong remonstrances against the measure, on the part of the directors, who persisted in their system of hampering the native trader, to the emolument of foreign speculators. On these grounds, he felt it his duty to bring the business fully and directly before parliament. The house would have the goodness to recollect, that the trade to India was divided into two branches-the trade to China; and that to India, as it was called: the latter embracing Bengal, Calcutta, and the rest of the settlements. The joint produce of these two branches amounted, in the year 1800, to 7,000,000l. sterling: of these, 4,000,000l. sterling were reexported. The proportion of the free trade was nearly 3,500,000/. sterling. The trade carried on by foreigners amounted to considerably more than 1,500,000l. sterling. To what extent the trade might be carried and improved, it was impossible to say. In the single ar

ticle

ticle of indigo, which had not been cultivated many years, an addition of no less than 1,000,000l. sterling was made to annual produce. Hence the house would be able to form some estimate of what might be done, if due facilities were afforded to enterprise. All that he contended for, all that he required of the company and of the house, was, that the same privileges should be accorded to the free trade of this country which were allowed to foreigners. But fair and equitable as this demand must appear to every candid and impartial judge, it was peremptorily refused by the directors. Nay, they even granted privileges to foreigners which they denied in toto to their own countrymen. Foreigners were allowed to deal, not only in certain articles, but in the company's goods in general. The effects of such a system could not fail to prove ruinous to the interests of this country, by enabling foreigners to undersell us in the European markets. In the year 1793, the sale of East India goods at L'Orient amounted to no less a sum than 1,300,000l. sterling. This was the produce of the trade with France alone. But it should be remembered, that Denmark, America, and Lisbon, had likewise embarked in this concern. It was not his wish to exclude foreigners from the East Indies; but not to sacrifice the interests of our country to theirs-not to cramp and fetter the British trader in compliment to foreign dealers. Perhaps some genfiemen might feel inclined to attach considerable weight to the declared and unanimous suffrage of the court of directors, in opposition to the encouragement of the free trade. But as a counterpoise, a more than

equivalent to their authority, he had the opinion of a right honourable gentleman (Mr. Henry Dundas), who had devoted particular attention to this important subject, and who was decidedly in favour of the free trade. He had the authority of all the governors who had managed the company's affairs in India, and who surely must be allowed to possess the means of judging of the subject. Further, in order to show on what ground the directors stood, it might be proper to offer a few remarks on the mode of their election. The original qualification for a director was 500l. This had consequently been raised to 1000l. Another change was effected by limiting the election, which was originally annual, to every four years. This he considered as the grand and generating cause of most of the evils which had ensued. The directors were now no longer the representatives of the proprietors, but a selfappointed, self-elected body. Six went out annually by rotation, and came again as regularly into office, when their period of rotation returned. Only one instance did he know of a director being chosen, whose name was not on the house list. By this means the constitution of the company was totally changed and subverted. The direction of the company was a complete aristocracy. And the experience of ages emboldened him to affirm, that of all possible governments, not excepting even the horrors of a wild democracy, aristocracy was the most tyrannical and dangerous. It was, indeed, no wonder that the directors should succeed in establishing this system of aristocratical dominion, when it was considered what im

mense

mense patronage they enjoyed. The whole list of appointments abroad; the purchase of goods for the foreign market; the choice of merchants; the appointment of ships; all these opportunities of influence centred among themselves. This was, in truth, the real cause and motive of the objection started by the directors to a more beneficial improvement of the trade. They were unwilling to weaken their own power and influence by admitting a competitorship. This appeared to be the case by their own confession. The honourable baronet then entered into a comprehensive analysis of a publication by one of the directors on the momentous subject, the chief and leading points of which he argued with great perspicuity; and after again pressing on the consideration of the house the vast magnitude of the discussion, and the necessity there was of granting facilities to our country, in preference to foreigners, concluded his speech with moving for the appointment of a committee, to take into consideration the papers laid before the house last sessions, relative to the proceedings of the East India company with respect to the trade with India; and to report the same to the house.

The Chancellor of the Exchequer began by admitting the great importance of the present question. It was, in fact, he observed, of so much importance, that it should not have been brought into agitation, unless under circumstances of extreme necessity. He should not, however, enter into the circumstances of the case previous to the arrangement of 1793, between the public and the East India company. The act of that date had wisely provided, that a certain quantity of tonnage should

be allowed to the private trade, as conducing equally to the encouragement of British manufactures, and to the consumption of our East India produce. If the directors had not given to private trade all the facilities required by that act, and of course expected by its framers, he should not have looked upon the present motion as a new measure, but rather as a supplement to that act. There was, however, no immediate issue before the house, on which it was called upon peremptorily to decide. The governor and the directors, the marquis Wellesley, and the late president of the board of control, had all agreed that something was necessary to be done in this case. They had wisely viewed the contending parties as looking to extreme points, and they had properly adopted a medium between these two extremes. It would be of infinite mischief, in his opinion, if the private trade were to be encouraged beyond a certain extent. It would be still more mischievous if a rivalry were to be established between the English and the India shipping, and if the latter were, on all occasions, to be sent home full freighted with the private trade. A most material difference, Mr. Addington said, had taken place since this question was first brought forward. It was first produced in time of war; it was now happily to be discussed in a time of peace. The complexion of the case was therefore so far different that no disadvantage could arise from delay. There were now nearly three years left for the experiment agreed upon between the marquis of Wellesley and the board of control, by which every possible advantage was to be given to private trade, remaining,

as

as in his opinion it should be, under the direction of the East India company. It was the aim of his predecessors, and, without any prejudice as to their intentions, it must ever be his wish, that London should be not only the emporium of India trade, but the sole and exclusive mart of India produce. He should not enter into any comparison between Lascars and British seamen, as the latter would ever maintain their ascendancy, and the former were to be considered as inerely supplementary. Neither was it his wish to enter into the question of colonization, though there was doubtless some danger from what had happened in another quarter. The cases of America and India were, in his opinion, widely different. The capitalists of the latter had no other wish than to settle in their mother country. There was therefore merely a ground of caution, with which it was not necessary, in his judgment, at the present season, to occupy the house. He was of opinion, that the act of 1793, with the recent arrangements, was fully sufficient for every purpose. There was no pressing exigency for the interference of the house. He, therefore, though approving of the motion in many points of view, must meet it in an indirect way, which he did by moving the previous ques

tion.

Mr. Johnston (the nephew of sir W. Pulteney) followed up and maintained the arguments of his honourable relative. He alluded to the arrangements which had been made for the term of three years. [Mr. Addington said across the table, "for two seasons, amounting nearly to three years."] Mr. Johnston continued, The plans, he

said, which had been made abroad and at home, by no means met with his approbation. The receipts from India by private channels did not consist wholly of the remittances of individuals. There was to be included the loans of the company, of which two millions out of ten only were taken by the natives. The balance in favour of India, he contended, was now nearly five millions sterling. Surely some proper mode should be devised for the remittance of these large sums. If India-built ships were not admitted into the port of London, they would find their way to Antwerp and L'Orient, to the immense benefit of foreigners, and their trade would be carried on even more advantageously than under British colours. He desired to know what was to be done to prevent this mischief after these two years of experiment had expired?

Mr.Addington begged leave to answer, that what was to be done at the end of two years must rest with the discretion of the government and of the East India directors, who must, of course, feel it necessary to come to some permanent arrangement. With respect to the indulgences granted by the latter, he must say, that they appeared to him to be very ample indeed. They had agreed to extend the import tonnage from three to five thousand tons, provided that this was done under their immediate direction. had for its obvious tendency both the public and private advantage. It was stated in the paper which he held in his hand, that these ships thus employed should not be detained for any political purpose, unless they were laden with piece goods or with saltpetre-that the company was inclined to make up

This