XI. 1772. CHAP. quired were rarely amaffed but by a long and perfevering attention to trade; moderate wealth was the progreffive effect of certain intellectual and moral qualities, fkilfully and fteadily exerted for a long courfe of years, forming and determining the chaInfluence of racter, while they filled the coffers. By the vast accumula tions in India. Stockjobbing. Fictitious credit. acquifitions in India, immenfe fortunes had been accumulated almost inftantaneously: adventurers of very limited merit in three or four years had returned with ten times the wealth that able, profperous, and eminent merchants were able to collect by the efforts of a long and induftrious life. The view of fuch aftonifhing acquifitions dazzled many traders, and inftead of fubmitting patiently to former modes of commercial process, they would become opulent by compendious means: with this intent, they engaged in hazardous adventures in the funds *, monopolies, and various other objects. Not having actual property for carrying on fuch extenfive plans, they were obliged to proceed upon truft; and, as men of real wealth were not the most likely to risk their money on doubtful fchemes, combinations of indigent adventurers were formed for maintaining a fictitious credit by interchange of bills. Some of thefe actually fucceeded in acquiring a capital; others kept themselves fo long afloat, as to imprefs the world with an opinion of their ultimate refponfibility, and thus found means to involve wealthy men in their projects. From the eastern accumulations *Though ftock-jobbing had prevailed ever fince the establish ment of the national debt, the great fluctuation of India ftock about this time afforded more fcope than ufual for this fpecies of gambling. and CHA P. XI. 1772. adventure and manners, came also an enormous increase of luxury; this evil did not fo readily affect the fubftantial merchant, who in making his fortune had formed his habits to frugality and moderation, as the vifionary and needy projector, whofe fancy anticipated immense profits, and whose actual poffeffions could not poffibly fuffer the smallest lofs. The failures of this year were chiefly imputable to ex- Extravagant travagant projects in trade, stock-jobbing, and enor- without mous paper credit without capital mutually acting capital. and re-acting, severally and jointly the effects and caufes of luxury and profufion. Thefe difafters, fpringing from unwarrantable adventure, extended their confequences to men totally unconcerned in fuch wild and deftructive fchemes. Bankers, in particular, were a clafs of traders, who, from the nature of their business, had many customers among perfons requiring much accommodation by discount, and fome of these sustained very great loffes. The bank, in a state of general distrust, having refused the ufual discounts, men of confiderable property were embarraffed, as they could not raise money to discharge engagements formed on the faith of customary accommodation, and for feveral months trade was ftagnant. Although many of the commercial sufferers were distressed, not from want of property, but the stoppage of its ufual convertibility, no measures were proposed by mininifters for fupporting the mercantile credit of perfons, who, by temporary affiftance, might have been preserved from ruin. Greatly, however, as thefe infolvencies obftructed trade at the time, they did not prove ultimately injurious; for, by inculcating I 4 XI. 1772. CHA P. culcating caution and referve, they rendered credit more difcriminate, and difcouraged the defperate fchemes of gamblers, and other unprincipled or infatuated fpeculators. This beneficial effect, how. ever, they owed to the natural courfe of commercial confidence, without any aid from the policy of adminiftration. High eni mation of Jord North for com me.cial skill. Affairs of the India company. than greater any Lord North had now acquired a ftability and much power, of his predeceffors fince the refignation of Mr. Pitt. In the miniftry there was none of that diftraction of counfels, which contributed fo much to the inefficiency of former adminiftrations. The firft lord of the treafury excelled most members in parliamentary eloquence, and he had already acquired great reputation for financial fkill. From the return of tranquillity to the greater part of America, and the diminution of licentioufnefs at home, his political talents were generally refpected. The opponents of government, though ftill paramount in genius and eloquence, were very much diminished in number, and lefs fevere and vehement against a minister whom they could not help thinking well-qualified for his office, and throughout the nation lord North was become the object of esteem and confidence. The fubject about to occupy chiefly the enfuing feffion of parliament was the affairs of India, in the investigation of which a committee of the house was employed during the fummer. Though the concerns of the company had been brought under the cognizance of parliament fo early as 1767, no measures of correction and regulation had been adopted, except to refcind their acts, reftrict XI. 1772. their dividends, and obtain from them an an- CHA P. nual fum of money on ftipulated conditions. Inquiry and investigation now afforded abundant proof, that a comprehenfive and radical reform was indispensably neceffary to the interests of the company, the honour of England, the welfare and even existence of the natives, and the falvation of British India. ary embar An immense acceffion of territory had unavoid- Its pecuniably compelled the company to repose very great trust rafïments. in their fervants, and this confidence had been most grofsly and flagrantly abufed. The company's officers were guilty of complicated and extenfive malverfation; their ambition and extravagance had involved their employers in unnecessary and enormous expences; and their extortion, peculation, and iniquity, made a confiderable diminution in the income of their mafters. To enter on a particular detail of the multifarious means which were employed by the company's fervants for defrauding and plundering the natives of India, would far exceed our limits; but a fhort sketch of the character, fyftem, and leading confequences of the peculation is a neceffary part of our history, as a momentous fact belonging to our subject, marking the principle, fpirit, and operation of British avarice in India, and afcertaining the neceffity for a control to restrain and prevent fuch flagrant and deftructive wickednefs. It was before obferved, that the plunder of India Conduct of was conducted by our countrymen according to mercantile modes, and this remark our prefent account will farther illuftrate. The chief fervants of the company made it their firft bufinefs to inform them its fervants, ΧΙ. 1772. CHA P. felves of the most valuable and marketable commodities in the provinces which they were employed to govern, for the benefit of their masters; they found that fait, betel, and tobacco, were the most produc-. tive merchandises; and, accordingly, they very deliberately formed what they called a commercial affociation for inland traffic in thofe articles. The principle of the co-partnership was very fimple, being only that the faid affociators, namely the council of Calcutta, its friends and favourites, should have the fole power of buying and felling thofe commodities. Thus did fervants, without any authority from their mafters, who had indeed no right to grant fuch power, establish by their own will, and for their own benefit, a monopoly of the abfolute neceffaries of life, throughout three large, populous, and opulent provinces. Having no competitors, they bought and fold at their own price: impoverishing the people, they rendered them unable to pay the stated exactions of the company; and thus, in robbing the natives, they defrauded their own employers. Not fatisfied, however, with commercial pillage, they turned their views alfo to territorial eftates. The zemindars, or landed proprietors, held their poffeffions on leafes, the validity of which had never been doubted, more than any other legal fecurity for property. The company's fervants, however, deftroyed this right, deprived the proprietors of their lands, fold them to the highest bidders, and fhared the profits among themfelves, according to their respective rank and influence in this combination of rapine. The land-holders, deprived of the fecure expectation of reaping the fruit, neglected to cul |