"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 treafory, to be by them laid before both houfes of parliament.

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

"It next provides for the fpeedy and effectual trial of all perfons charged with any offences committed in India; and alto 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 such charge fhall be had, to enter upon the journals, and fubfcribe with his name, the specific reafons on the particular cafe, for the opinion or vote he thall give thereon.

"It further provides for a fpeedy decifion upon 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 hall be received, the directors fhall

"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 ple fure; 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 Houfe of Commons. And lastly, that the affiftant directors fhould be allowed a clear yearly falary of 500!. 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 correfpondence in India to the feveral councils 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

"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 presents to be illegal, with certain penalties; and makes fuch prefents recoverable by any perfon, for his own fole benefit.

"It fecures an eftate of inheritance to the native landholders, and provides against the alteration or increafe 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 molested 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 prinees or zemindars dependant upon

them.

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

"It directs that the difpoffeffed polygars fhould be reflored,

"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 per. fons 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 laftly directs that all of. fences against this act may be profe fecuted 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 prc. grefs in both houfes of parliament, their merits, as a fyftem for the go. vernment of India, was ever controverted or denied, even by those 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 necetfity: 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 char ters; the first, when the natural rights of men were confirmed by the folemnity of fome public deed, fuch

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 sights of mankind at large, in, order to confer fome exclufive privilege on particular perfons; fuch were commercial charters; and fuch charters were therefore, in the ftri&teft fenfe, trufts voidable whenever they fubftantially varied from the purpose of their existence.

That in conformity to this op nion, parliament had paffed feveral acts, all of which evidently infringed upon the charter of the company. The act of 1773, for depriving 5col. ftock-holders of their votes; the act of 1778; the act of 1781; the bill brought in laft fef fion 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 company's charter? Had not even thofe perfons, who now affected to feel fo much horror at this infringement of charters, themfelves exclaimed against all palliatives and half meafures, and called loudly for a complete and well-digested 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 juftified by acts of delinquency legally eltabiiffed. To this it was replied, that their property was not confiscated, the bill exprefsly vefting it in the company, in truft for the fole benefit of the proprietors. But to whom, faid the opponents, are they to apply for relief, in cafe of the groffelt 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 minifter a majority in his favour.

With refpect to disfranchifement, it was urged in fupport of the bills, that the moft material of their franchifes, their commer cial monopoly, was left untouched; and that the franchises taken away were fuch as had been grofsly and notoriously abufed.

This preliminary ground being. fought over, the advocates for the new fyftem proceeded to establish the plea of neceflity; 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 state of the finances of the company was the firft inftance adduced. In the courfe of laft year the company had applied to parliament for leave to borrow 500,000!. and afterwards for a further aid of 300,000/. in exchequer bills, and for the remiflion of the payment of caftoms to the amount of near a million more. As a check on the further increafe of their debts, they had been bound not to accept of bonds drawn on them from India,

beyond

beyond the amount of 300,000 without the leave of the lords of the treasury. An application for this purpofe had been lately made, and it appeared that bills had been drawn in Bengal, over and above the 300,000l. amounting nearly to two millions of money. The matter appeared to be of an extremely delicate nature. On the other hand, to fuffer the bill to be protefted, and fent back, might be of ruinous con fequence both to the company, and even to the credit of the nation. On the other, to permit the accept ance of them, and thereby pledge the public faith for their payment, was a step that required, at leaft, a previous examination into the ftate of their affairs. On this examination it was found, that their debt, including the fums above mentioned, amounted to about eleven millions; and that the stock in hand, applicable to the payment of this fum, did not exceed 3,200,000l. With this balance of near eight millions against them, it was afked, whether, without adopting fome effectual reformation in the management of their affairs, the Houfe of Commons

could lend the public money on the fecurity of a company already on the verge of bankruptcy.

In oppofition to this argument it was averred on the other fide, that the account, as above ftated, was abfolutely falfe; and another account was prefented to the house by the court of directors, in which there appeared a balance in favour of the company of near four mil. lions. This difference of twelve millions in the two accounts arofechiefly from their having been made upon different principles. In the fatement of the directors, every fpecies of the company's property was brought into account, and a balance truck on the fuppofition of its being at that moment diffolved. In the other, fuch parts of their flock only were carried to their credit, as could be difpofed of, leaving them fill in a condition to continue their trade, which it was the object of the bills to enable them to do. On this principle the following fems, carried to the credit of the company, in the directors ftatement, were difallowed.

422,000

3:402,000

at 3 per cent.*

1,680,000

Carried forward

7,954,600

And

The principles of this statement were ftrongly controverted by the fpeakers in oppofition; and even fuppofing them juft, the last article, in which the original stock of the company ftands a debt against them, was faid to be in direct contradiction to the principle firft laid down.

The fecond head of abuses related to the company's government in India, as it affected, ift, The independent powers of that country; zdly, The ftates in alliance with or dependent on us; and, 3dly, Our own territorial poffeffions.

Under the first clafs were ranged the extravagant projects, and expenfive wars, entered into by the company, for the purpose of extend. ing their dominions; their violations of treaty, their breaches of faith, the fale of the company's authority and affiftance in fupport of the ambition, rapacity, and cruelty of others, and the betraying, each in his turn, of every prince, with out exception, with whom they had formed any connection in India, The facts which were brought in proof of thefe, and of the fubfe.

--

113,800 1,678,600

140,000 300,000 3,200,000

13,387,000

1,346,600

12,040,400

quent general charges, were taken from the reports of the two Indian committees. We have already had occafion to enumerate many of them; and as the impeachment of the Governor General of Bengal, which has fince been moved in the Houfe of Commons, will make it neceffary for us hereafter to enter into a larger de. tail, we shall referve them, in order to avoid repetition for that occafion.

The fecond clafs of abufes in the company's government in India, comprehended their corrupt and ruinous interference in the internal government of the princes dependent on them; the invafion of their rights; the unjust exaction of ex orbitant aids and tribute; the flagrant and enormous peculations of the company's civil fervants, and the diforders and rapacity of the military.

Thirdly, with refpect to the management of the countries under their own immediate dominion, it was ftated, that the general fyftem of their conduct was directed to one fingle end, namely, the tranfmiffion of wealth from that country to this. With this view, at one time, mo

nopolies