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CHAP. IV.

Meeting of parliament towards the clofe of the year 1783. King's Speech. Ad. dreffes voted unanimously. Two India Bills brought in by Mr. Fox. Subftance of the bill for vefting the affairs of the company in commissioners. Subftance of the bill for the better government of the territorial possessions. Debates on the bills. Objections and replies-1ft. of charters-plea of neceffity-magnitude of abufes-fate of finances-company's government in Indi-independent powers-allies and dependents-territorial poffeffions-abufes curable-court of proprietors-court of directors-minifters of the crown. d. Objection. The dangerous powers and influence created by the bills. Answer to this objection. First India bill carried to the House of Lords. Rumours of the king's diflike of the bill. Majority against the ministers in the House of Lords. Motions in the Houfe of Commons, relative to the reports of the king's difapprobation of the bills; and to the diffolution of parliament. Bill rejected by the Lords. Ministers removed.

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N the 11th November 1783, the two houfes of parliament being affembled, were informed, in the fpeech from the throne, that definitive treaties of peace had been concluded with the courts of France and Spain, and with the United States of America; and that preliminary articles had been ratified with the States General of the United Provinces. The caufe of their being called together after fo fhort a recefs was then explained. They were told that the fituation of the Eaft India Company would require the utmost exertion of their abilities, and that the fruit was expected of thofe important inquiries which had been fo long and fo diligently pursued. Their attention was next called to the dangerous frauds which prevailed, and the alarming outrages that had been committed, relative to the collection of the public revenues; and fuch further powers were required from the legislature as might enable the executive government to prevent the confequences of this daring

fpirit. The gentlemen of the Houfe of Commons were informed, that the reductions that had been made in the naval and military establishments were brought as low as prudence would admit; and that it was not doubted but the fortitude which had hitherto fupported the nation under many difficulties, would make her bear with cheerfulnefs the burthens which the prefent exigencies would require, and which were neceffary for the full fupport of the national credit. The fpeech concluded with recommending temper and moderation in all their deliberations, and with hoping, that as in many respects our fituation was new, their counfels would provide what that fituation called for, and that their wisdom would give permanency to whatever had been found beneficial by the experience of ages.

Addreffés in the ufual form were moved by the earl of Scarborough and Lord vifcount Hampden, in the Houfe of Lords; and by the earl of Upper Offory, and Sir Francis Baffet, in the lower Houfe; and

were

But

were unanimously agreed to.
this unanimity in the votes of par-
liament did not prevent fome hoftile
reproaches from being thrown
out against the principles on which
the administration had been formed,
and fome blame on their conduct,
fince their acquifition of office. In
the House of Lords, the earl Temple
charged them with having forced
their way into the fervice of the crown,
and thereby fhaken the conftitution
of this country; he asked why the
treaties with the Dutch and the
Americans had not been concluded?
why no notice had been taken in the
fpeech of the alarming fituation of
the public funds?, why no mention
had been made of Ireland? why
no plan had been yet brought for-
ward for regulating the affairs of the
India Company?

On that day Mr. Fox moved the houfe for leave to bring in a bill, "for vefting the affairs of the East "India company in the hands of "certain commiffioners, for the "benefit of the proprietors, and the

In the Houfe of Commons Mr. William Pitt, and Mr. Thomas Pitt, animadverted with great eriumph on the inconfiftency of the minifterial fide of the houfe, in voting an addrefs of thanks to the King, for having concluded defi., nitive treaties of peace, the very tranfcript of thofe preliminary articles which they had before voted to be inadequate and difhonourable. They likewife called loudly on the minister to bring forward without delay fome plan for fecuring and improving the advantages that might be derived from our poffeffions in the Eaft; a plan, not of-temporary palliation of timorous expedients, but vigorous and effectual, fuited to the magnitude, the importance, and the alarming exigency of the cafe. In anfwer to this requifition, Mr. Fox acquainted the houfe, that he propofed on the Tuesday following to bring forward a motion relative to that object.

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By the former of thefe bills it was propofed to enact, that the whole government and management of the territorial poff flions, revenues, and commerce of the company, together with all and fingular the powers and authorities before vetted in the directors, or in the general court of proprietors of the faid company, fhould be vested in feven directors, named in the act, for and during the fpace of four years.

"That for the fole purpofe of ordering and managing the commerce of the faid Company, nine affistant directors, being proprietors, each of them of 2,000l. capital flock, fhould be appointed, to act under and fubje&t to the orders of the directors aforefaid.

"That all vacancies in the office of the faid directors fhould be filled by his majefty; and that the vacancies in the office of the faid affiitant directors fhould be filled by a majority of the proprietors of the company, at an election by open poll.

"That the affiftant directors should be removeable by five directors, the caufe and reafons for fuch removal being entered on their journ is, and figned with their respective names; and that the directors, and affiftant directors, fhould be removeable by his majesty, upon an addrefs of either houfe of parliament.

3

« The

"The bill then provides certain regulations relative to the official proceedings of the directors; and enumerates certain difqualifications, which fhould render any perfon incapable of being a director or affiftant director.

"It then enacts, that the directors fhould, once in every fix months, lay before a general court of proprietors an exact ftate of the mercantile concerns of the company; and alfo that, before the commencement of every feffion, they fhould lay the fame, together with other accounts therein ftated, before the commiffioners of his majefty's treafury, to be by them laid before both houfes of parliament.

"Authority is then given to the directors to remove, fufpend, ap. point, or reftore any of the officers in the company's fervice, either civil or military.

"It next provides for the speedy and effectual trial of all perfons charged with any offences committed in India; and alfo for the prevention of all perfons fo charged from returning to India, before a due examination of the matters charged fhall be had; and it requires from every director before whom examination into the fubject matter of fuch charge fhall be had, to enter upon the journals, and fubfcribe with his name, the fpecific reafons on the particular cafe, for the opinion or vote he fhall give thereon.

"It further provides for a fpeedy decifion upon all differences all differences or doubts which may arife amongst the members of their government in India; and directs, that in cafe fuch a decifion, fhall not be had within three months after the account of any fuch difference or doubt fhall be received, the directors hall

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"It then enacts, that the direc tors and affiftant directors fhould be incapable of holding any office whatfoever in the fervice of the company, or any place of profit from the crown during pleafure; and alfo, that the directors appointed under this act should not be thereby difqualified from being elected, or fitting and voting as a member of the House of Commons. And lastly, that the affiftant directors fhould be allowed a clear yearly falary of 500l. from the company."

By the fecond bill," the powers granted to the governor general and council, by the 13 Geo. III. are more fully explained, and ftrict obedience to the orders of the directors enjoined.

"The delegation of the powers of the council general, or of any prefidency, is prohibited; the revi fion of all proceedings in fpecial commiffions is directed; and the regular communication, of all corre fpondence in India to the feveral coun cils provided for.

"It forbids the exchange, or the acquifition, or the invafion of any territory in India, or the forming any alliance for fuch purposes, or the hiring out any part of the company's forces, by the council general, or any prefidency.

"It prohibits the appointment to any office of any perfon removed for the mifdemeanor, and forbids the letting out to hire any farm or other thing to the fervants of any perfon in the civil fervice of the company.

"It abolishes all monopolies in India.

"It declares the acceptance of all prefents to be illegal, with certain penalties; and makes fuch prefents recoverable by any perfon, for his own fole benefit.

"It fecures an eftate of inheritarce to the native landholders, and provides against the alteration or increase of rents.

"It then directs, with refpect to princes engaged to keep up or pay troops for the fervice of the company, or paying tribute to them, or being under their protection, that they fhall not be molefted in the enjoyment of their rights; it provides for the punishment of of fences committed in their territories; it forbids the fervants of the company to collect or farm their revenues, or to acquire mortgages, or have any pecuniary tranfactions with them; and fecures the right of fucceffion according to the laws of the country; it likewife prohibits them from farming any lands of the company, or refiding, for more than a certain term, in any of the company's fentlements; and it provides for the protection of any other princes or zemindars dependant upon them.

"It prefcribes a mode for adjufting the difputes between the nabob of Arsot, and the raja of Tan. jore, or between them and their British creditors.

"It directs that the difpoffeffed polygars fhould be restored,

"It next explains the powers granted by the 13 Geo. III. to the council general over the other prefidencies, in matters of war, peace, and treaties.

"It difqualifies the agents of any protected prince, and all perfons in the fervice of the company, from fitting in the Houfe of Commons, during their continuance in fuch employment, and for a certain time after their quitting the fame.

"It lafly directs that all of. fences against this act may be profefecuted in the courts in India, or in the court of King's Bench."

Such was the fubftance of these two celebrated bills: fimplicity, efficiency, and refponfibility, are evidently the principles on which they are formed; nor does it appear, that, during the courfe of their progrefs in both houfes of parliament, their merits, as a fyftem for the government of India, was ever controverted or denied, even by thofe who oppofed them with the greatest zeal and acrimony.

The arguments urged in oppofition to them were drawn from two fources: 1ft, The arbitrary defeazance of the chartered rights of the courts of proprietors and directors, without a juftifiable plea of neceifity: and, 2dly, The dangerous power lodged in the hands of the new commiffioners. On both thefe grounds iffue was joined by the advocates for the new system.

In order to fubftantiate the ground of neceffity, the fupporters of the bills began with obferving, that the phrafe of chartered rights was full of affectation and ambiguity. That there were two kinds of charters; the first, when the natural rights of men were confirmed by the folemnity of fome public deed, fuch

as

as the charters of King John and King Henry III. The fecond fort were formed on principles the very reverfe of thefe; they were for the purpose of fufpending the natural rights of mankind at large, in order to confer fome exclufive privi. lege on particular perfons; fuch were commercial charters; and fuch charters were therefore, in the ftricteft fenfe, truts voidable whenever they fubftantially varied from the purpofe of their exifence.

That in conformity to this opinion, parliament had pafled feveral acts, all of which evidently infringed upon the charter of the company. The act of 1773, for depriving 500l. tock-holders of their votes; the act of 1778; the act of 1781; the bill brought in laft feffion by the chairman of the fecret committee; were all clearly founded on a violation of the company's charter. It had been admitted, on all fides, that the company, under its prefent conftitution, was totally inadequate to the government of their immenfe territorial acquifitions; and it was afked how it was poffible to attempt any regulation, without violating the comp ny's charter? Had not even thofe perfons, who now affected to feel fo much horror at this infringement of charters, themselves exclaimed against all palliatives and half meafures, and called loudly for a complete and well-digefted fyftem?

.

On the other fide it was contended, that though fome reform was undoutedly neceffary in the management of the company's affairs, yet that the extent of the remedy went infinitely beyond the extent of the neceffity. That the disfranchifement of the members of the company, and the confifcation of their

property, could only be justified by acts of delinquency legally ettabiified. To this it was replied, that their property was not confifcated, the bill exprefsly vefting it in the company, in cruft for the fole benefit of the proprietors. But to whoin, faid the opponents, are they to apply for relief, in cafe of the groffeft abufe of this truft? It can only be to parliament, where in any difpute the corrupt influence created by the bills would readily procure to any minister a majority in his favour. With refpect to disfran chifement, it was urged in fupport of the bills, that the moft material of their franchifes, their commercial monopoly, was left untouched; and that the franchifes taken away were fuch as had been grofsly and notoriously abused.

This preliminary ground being fought over, the advocates for the new fyftem proceeded to establish the plea of neceffity; in order to which they acknowledged themfelves bound to prove, Ift, That the abufes alledged were of enor mous magnitude and extent, and highly dangerous in their confequences; and, 2dly, That they were habitual, and, without an entire change of fyftem, utterly incurable.

The ftate of the finances of the company was the first inftance adduced. In the, courfe of last year the company had applied to parliament for leave to borrow 500,000l. and afterwards for a further aid of 300,000l. in exchequer bilis, and for the remiffion of the payment of customs to the amount of near a million more. As a check on the further increase of their debts, they had been bound not to accept of bonds drawn on them from India, beyond

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