The Ministry, in the meanwhile, had begun to take a share in the proceedings of the Company, which for a long time before had not been usual. The reported advantages of the trade, and the great fortunes suddenly amassed and brought home, had excited in the country no small envy, and some desire to share in these advantages; while the repeated revolutions in India, the circumstances attending them, with the rapacity and extortions which had distinguished the progress of the inland trade, had, when known, produced general murmurs throughout the nation. When the news arrived of the successful negotiations of Lord Clive, and of the immense territorial advantages said to be acquired for the Company, the question was raised, to whom belonged these dominions, the government of which was apparently so little suited to the system of a trading company; and the financial difficulties which the Ministers so strongly felt, led them to consider in what way the nation could be admitted to share in them. This was particularly observable after the formation of Lord Chatham's administration.[138]

It has been already mentioned, that Lord Clive shared in that excessive admiration of Mr. Pitt, which, during his first administration, and for some years after, may be said to have been felt by the whole people of England. Lord Clive, in his own politics, had, as we have seen, most attached himself to the Right Hon. George Grenville, a man of great knowledge of business, and of much talent and worth, the leader of one great portion of the Whig interest; but who, at this period, was on indifferent terms with his illustrious though overbearing friend. On the great question of the right to territorial acquisitions, Mr. Pitt was disposed to consider them as under the control of the state; but he was not insensible to the difficulties, legal and political, which the question involved, from the nature of the territories themselves, situated in the dominions of an ancient and independent empire; from the influence which such acquisitions, especially from the patronage they afforded, must have on the British constitution, and the minor difficulties of detail attending any change of local management. We have seen that Lord Clive was strongly persuaded of the paramount rights of the state, and had communicated his opinion to Mr. Pitt. Mr. Walsh, who took an active share in the management of his affairs in England, was anxious to have the approbation, or, at least, the opinion of the great commoner on recent events in India. He, in consequence, had occasional interviews with him, the circumstances of which he communicated in his letters to his friend; and though Mr. Pitt, who always entertained the highest opinion of Lord Clive's merits, appears to have cautiously avoided committing himself by any decided opinion, yet, as the letters relate to persons on every account so remarkable, no apology seems necessary for introducing them.

The first of these notices occurs in a letter of Mr. Walsh, written after the news had arrived of Lord Clive's negotiation with the Vizier, and of the subsequent peace, and its advantages to the Company, especially in the possession of the dewannee, which really made them rulers of Bengal. "I am very sorry," says Mr. Walsh, "you did not write a few lines to Mr. Pitt, to conciliate him to your negotiations: he has left us for Pynsent, where he is doing great things. I spoke a few words to him, just as he left the House of Commons, telling him you had, in great measure, carried into execution what I had once the honour of laying before him; to which he answered, that he had heard of the great things you had done; that you had acquired great honour; but that they were too vast: it was some time he had been dissatisfied with our proceedings there: however, he was very glad to hear that Lord Clive was well, and that he had not gone up to Delhi. This was all that passed between us, whilst he was getting on his great coat."—"I should be very sorry," he continues, "to have been adverse to you or your regulations, therefore mention this that due attention may be paid to him. One word from him would go far in making or unmaking the Company; and it is the uncertainty of the public, how far the Company may be supported by the Government, that makes their stock so low, notwithstanding the late events. The renewal of their charter is a serious object; the effecting it may possibly be reserved for you." It gives a grand idea of Mr. Pitt's reputation, and of his influence on the public mind, to consider, that, when this interview took place, he was merely a private member of Parliament, holding no office.

In the interval between this letter of May, and the following of November, Mr. Pitt had come into office with Lord Camden, Lord Shelburne, the Earl of Northington, and Charles Townsend, and had been raised to the peerage. There was some reason to think that the new Ministry were disposed to take part with that portion of the Court of Directors that was hostile to Lord Clive. Lord Shelburne in particular, who was supposed to have much influence with the Premier, had always favoured Sulivan. "Soon after the new administration was formed," says Mr. Walsh[139], "the Chairman and Deputy Chairman were sent for to the Cabinet Council, and were acquainted that, as the affairs of the India Company were likely to be taken into consideration by Parliament, it would be proper for them to be prepared. An intimation of the kind could not fail to alarm, and affect the stock greatly.

"The Quarterly Court being over, I made an excursion to Bath, where Lord Chatham, Lord Camden, and Lord Northington were assembled. My private motive for this journey was to discover their disposition towards the Company; and, by means of my intimacy with Lord Camden, to endeavour to put you on a good footing with Lord Chatham, who, there was some reason to apprehend, was not the best disposed either towards you, the present direction, or the Company. I recollected Lord Chatham's discourse to me about your acquisitions being too vast; and saw Shelburne, Barré, and the enemies of the present direction in the highest employs. Lord Camden immediately removed any apprehensions as to any thing hostile being intended against the Company. I told him that I was ignorant whether the Directors had given the Administration full information concerning the affairs of Bengal: but, whatever their conduct might have been in that respect, I, as acting for Lord Clive, should use no kind of reserve with the Administration; that Lord Clive, though a zealous servant of the Company, ever considered his duty to his country to be the first and greatest obligation upon him; that he had formerly submitted to Lord Chatham's consideration, whether the Bengal acquisitions were an object for the state or the Company; and that, though the Company had in a manner been left to pursue their own measures in that respect, yet it was reasonable that, in such great prosperity as theirs, they should contribute liberally to the exigencies of the state; that your friends would readily concur in such a measure, and that I wished for an opportunity of assuring Lord Chatham of this; but as I knew him, particularly in his present ill state of health, to be inaccessible, I requested his Lordship to report it to him. He advised my writing a note to see Lord Chatham, which I accordingly did, and was admitted, though it was then a favour, as I understood, he had only granted to Lord Camden.

"I should have mentioned that, before I left town, I waited on General Conway[140]; made him the same offer of information; gave him a state of the revenues, and pointed out to him some of the means by which the commerce of the Company might be greatly advanced. He appeared quite unacquainted with these affairs, but very desirous to be informed.

"It was the 11th of last month that I saw Lord Chatham. I told him the occasion of my visit in almost the same words I had used to Lord Camden; in answer to which, after complimenting me on the purity, as he styled it, of my intentions, and of the liberal way in which I had considered this matter, he told me that all matters of fact relating to India would be very acceptable to him, though he did not wish to receive propositions on that head, as the affair was of too extensive and too difficult a nature for Ministers to determine; that they could not undertake to decide between the State and the Company, what was precisely proper for each; that the consideration must of necessity come into Parliament; that by the means of so many gentlemen coming from different parts of the kingdom, and turning the subject different ways in their minds, many new lights might be gathered; that the Crown had nothing to do in the affair, and that its ministers could only interfere in preventing unreasonableness and oppressions on one side or the other; and that the Company, in all cases, must subsist. On my giving him the state of the revenues, he seemed much surprised at the smallness of the amount, saying that Holwell and common report had made it much larger. He spoke very handsomely of you; said that he heard with concern of the virulent publications against you; that it was incumbent on the Company to support you strongly, and likewise to reward you. I mentioned how greatly the Company's commerce might be extended with the assistance of Government; hinted the necessity there was of excluding foreigners from being stockholders and sharing in our benefits; and concluded with observing that every thing I had heard from him gave me the highest satisfaction, except the impracticability that he intimated of any arrangement between the Administration and the Directors before the meeting of Parliament.

"This is the substance of my conversation with this great man, who is certainly not only the most vigorous, but the most comprehensive and judicious, minister this kingdom ever had. I hope, in consequence of what I before wrote you, that you have taken some steps to conciliate and attach him. He has a greatness in himself, which makes him feel and assert the great actions of others.

"I put your public letters into the hands of Lord Camden, who, doubtless, showed them to Lord Chatham. Both one and the other, I am certain, are well satisfied with the confidence. Mr. Grenville has had all the papers laid before him, and part of them, particularly those relative to the conduct of the servants, have been communicated to others."

From these letters, it is evident that Lord Chatham had been yet able to form no plan on the vast subject of Indian affairs; that he was disposed to let matters take their course for some time longer through the intervention of the Company, and that the recent extension of their dominions probably rather embarrassed him; that he was alive, as he had always been, to Lord Clive's splendid merits, and an advocate for the rewards the gratitude of the country ought to bestow. At the same time he was cautiously guarded not to commit himself by any opinions, but rather disposed to gain time and watch what the progress of events might produce. It could hardly fail to gratify him to see all parties contending for his favour, and laying the information they possessed, and a tender of their services, at his feet.

Lord Chatham's administration was formed in the last days of July, and it was in September that the Chairman and Deputy Chairman of the Company were sent for to the Council, and informed that it was likely that the affairs of the Company would be taken into consideration when the Parliament met. The same notice was soon after communicated in writing.

The Directors, thus put upon their guard, looked eagerly to what was to follow. The movement began in the House of Commons, where Mr. Beckford gave notice of a motion for an inquiry into the affairs of the East India Company[141]; and in the course of his speech, adverting to the burdens laid on the landed interest, and to the rich acquisitions of the Company in the East, congratulated his brother landholders that they should no longer be hewers of wood and drawers of water. The very exaggerated statements of the revenues of Bengal, published by Mr. Holwell and others, had induced the public to look to them for at least a partial relief from their burdens. The Ministers, however, cautiously concealed their intentions, if they had any, and proposed nothing. Lord Chatham was constantly confined by the gout, remained chiefly in the country, and showed himself but little; and his colleagues did not venture, in his absence, to propose any important measure. Matters went on languidly. Indeed, the symptoms of disunion very soon became visible in the motley cabinet which had been formed, and was supported chiefly by Lord Chatham's great name.

His opinions on the Indian question were veiled in impenetrable mystery. Committees were, however, appointed to examine into the state of the Company, and votes were passed that copies of their charters, their treaties with native princes, statements of their Indian revenues, and their correspondence with their servants in India, should be laid before the Committees. On a motion for printing these papers[142], the Directors being alarmed, presented a petition showing the dangers and inconveniences likely to result from making public some part of the papers, especially the private correspondence; when, after a warm debate, that part of the order was discharged. Almost every person of eminence who had been in India, or connected with it, was, however, examined on oath before the House of Lords.

These inquiries inevitably led to the important question of the Company's right to their territorial acquisitions, which a strong party insisted must belong to the Crown. "The Crown," says Mr. Dudley[143], the Chairman of the Directors, "claims a right to all the Company's acquisitions, possessions, and revenues that have been obtained by conquest, which the Cabinet Council, with Lord Chatham at their head, say is the case with respect to every thing we have got from the King, the Nabobs, or other princes of the country for some years past, both at Bengal and Madras."—"We have been, and still are under the dilemma of studying the wants of the Administration, for they themselves will not open their mouths to utter one syllable. They seem to me to determine in their own minds that the right is in the Crown; and, therefore, if the Company have a desire to preserve a share in it, they must acknowledge that right, and pay largely for it." In the numerous debates on Indian affairs that took place in the course of the session, Mr. Beckford, Colonel Barré, and Mr. Nugent pressed upon the Company, while Mr. George Grenville and Mr. Charles Yorke strongly supported its rights, and pleaded the injustice of making any demands upon it in consequence of its conquests, as long as the term of its charter was unexpired. The lawyers were, in general, in favour of the Company; but neither the Ministry nor the Directors wished the dry question of law to be decided: neither party were altogether prepared for its consequences; both rather wished for a compromise, as more favourable to their present ease and their future views. Sir Matthew Fetherstonehaugh, a considerable proprietor of India stock, in a letter to Lord Clive[144], describes some of these debates. "In a question like this," says he, "about the right of property and the forfeiture of a charter, one would have thought that the opinion of almost all the lawyers in the house might have been attended to; but they were called by Colonel Barré 'a sort of heavy artillery, which did very little execution;' for which the Master of the Rolls called him, instead of the honourable gentleman, the valiant gentleman. Mr. Grenville, on both days, defended the Company's rights with a force that was unanswerable, always declaring that, if the Company wanted the renewal of their term, or any other favour from the public, they should be made to pay for it in the best bargain which could be made for the public; but protesting against extorting money from them by the terror and threats of parliamentary power."—"But the finest piece of oratory was Mr. Burke's (late secretary to Lord Rockingham). After pointing out the ill effects which so violent a measure might have on the public credit; 'but, perhaps,' said he, 'this house is not the place where our reasons can be of any avail. The great person who is to determine on this question, may be a being far above our view; one so immeasurably high, that the greatest abilities (pointing to Mr. Townshend), or the most amiable dispositions that are to be found in this house (pointing to Mr. Conway), may not gain access to him; a being before whom 'thrones, dominations, princedoms, virtues, powers' (waving his hand all this time over the treasury bench, which he sat behind), 'all veil their faces with their wings. But though our arguments may not reach him, possibly our prayers may.' He then apostrophised into a solemn prayer to the Great Minister above, that rules and governs over all to have mercy upon us, and not to destroy the work of his own hands; to have mercy on the public credit, of which he had made so free and large a use:—'Doom not to perdition that vast public debt, a mass of 70,000,000l. of which thou hast employed in rearing a pedestal for thy own statue.' Here Augustus Harvey called him to order to the regret of many." After a long series of debates, the Directors were finally frightened into a temporary compromise, agreeing to pay to the Government 400,000l., by half-yearly payments, for one year; and an act to that effect passed the house[145], and soon after received the royal assent.[146] A similar agreement was renewed the year after.

It was some time before that the vote of the Court of Proprietors raising the dividend to 12½ per cent. had been passed[147]; on which occasion a message from the Ministry had been read to the General Court, recommending that no augmentation should take place till their affairs, then under the view of Parliament, were considered. The Court having proceeded nevertheless, a bill was introduced, by which this order was rescinded, and the Company prevented from dividing more than 10 per cent. before the next meeting of Parliament.

While these various proceedings were in progress, a measure was proposed that much more immediately concerned Lord Clive's interests. During the discussions that had recently taken place in Parliament, however much the public mind had been excited and disgusted by the reported behaviour of the Company's servants in Bengal, all parties had concurred in loudly praising his conduct and services. When the news of his distinguished success in restoring the Company's affairs reached England, and when the negotiations between the Directors and the Government had begun, many of his friends considered that the proper time had arrived for proposing that some suitable reward should be conferred upon him for his extraordinary services; and accordingly, to prevent his interests from being injured by any subsequent agreement that might be made in the negotiation then depending, a motion was made at a General Court of Proprietors[148], "That it is the opinion of this Court, that the important services rendered to the Company by Lord Clive merit a grateful acknowledgment and return; and that a grant to his Lordship, and his personal representatives, of an additional term in the jaghire of ten years, commencing from the determination of his Lordship's present right therein, would be a proper acknowledgment and return for such important services: and that it be recommended to the Court of Directors, that, upon any future propositions being made, either to Parliament, or to His Majesty's Ministers, this resolution of the General Court be humbly represented."

On this motion being made, Mr. George Dempster, who was one of the leaders of the opposition to the Directors, moved an adjournment, which was negatived by 243 to 170. The main question was then put; when a ballot was demanded by Sir George Colebrooke in favour of it, and by Mr. Dempster in opposition; when Sir George Colebrooke's question was carried by 456 to 264.

The Proprietors having now formed themselves into a general court, Mr. Dempster moved to reconsider the question concerning the additional term of ten years proposed to be granted to Lord Clive in his jaghire, and which was to be considered on the 24th of March. This motion, after some opposition, was finally carried.

On the appointed day, a ballot having taken place, the original motion was carried by 361 to 332. The majority of 29 was small; but some misunderstanding had, unluckily, taken place among the friends of Lord Clive.

Mr. Dudley, then Chairman, in writing next day[149] to Lord Clive, observes, "The question which relates to your Lordship's jaghire might have been carried by a much greater majority, had the question been otherwise stated, and would, at the same time, have answered every purpose intended by it: but Mr. Walsh did not consult any of the Directors in forming it, nor could he be prevailed upon to alter it." Mr. Scrafton, then a Director, was also of opinion that Mr. Walsh, in his zeal to serve Lord Clive's interests, precipitated the question too much, bringing on his motion soon after the news of the acquisitions in Bengal had arrived, without giving time to see the effect of the great things that had been done. Mr. Walsh, on the other hand (perhaps alive to the uncertain operation of public gratitude), eager to accomplish what he had undertaken, and brooking no delay, charges the conduct of Lord Clive's friends, and especially of the Directors, with being hesitating and timid, so as to have thrown a damp upon the matter, and to have rendered doubtful the success of a proposition which would otherwise have received a pretty general concurrence. Lord Clive certainly thought that their conduct was at least lukewarm.

Such was the state of affairs when he arrived in England. Of the singular success of his management of the Company's concerns there was but one opinion; and the last months of his residence in India had added extremely to the reputation which he had previously acquired. It seemed indispensably requisite, therefore, that the Directors should redeem the promises which, at the time of his setting out, and afterwards in their public letters[150], they had made to him. About two months after his return a General Court was held, when the grant of the jaghire for ten years additional, which had been recommended at the previous meeting, was conferred on him by an unanimous vote. His irreconcileable enemies were probably led to decline appearing in opposition to the grant, by the certainty that their efforts would be fruitless.

This affair of the jaghire unluckily tended to alienate Lord Clive more than ever from his friends in the Direction. In truth, their aims were quite opposite. It was Clive's interest, when asking the reward of his services, that the revenues, and other acquisitions gained for the Company, should be published to their full extent: the Directors, fighting against a rise of dividend, were anxious to conceal their amount, and to represent them in as moderate a light as possible. The matter was most essentially important to Lord Clive's interests, and he was at no time very patient of contradiction. They had all along endeavoured to prevent the matter from being brought forward. He felt this conduct very sensibly, and did not conceal his resentment. While he used considerable exertions to secure an ascendency in the Court of Proprietors, he silently left the Court of Directors to follow their own opinions. This gave rise to many reports and groundless surmises. Writing, soon after, to Mr. Scrafton, his very sincere friend, who had differed in opinion from Mr. Walsh as to the management of this affair, he says[151], "I received both your letters at a time when I was too much indisposed to answer them. Neither am I inclined to answer that last part of them at all which relates to a difference in opinion between two friends, both equally hearty and zealous in every thing that concerns my honour and interest. Let it suffice to say, that I never entertained the least doubt of your regard and friendship for me. You are liable to an error of judgment as well as my friend W.; which has been the case sometimes with both of you.—However, I cannot avoid being much surprised at the behaviour of many of the Directors, who, either from jealousy or misrepresentation, or some worse cause, have entertained the injurious opinion that I mean to overthrow them, and be a Director myself. The being a Director may be an object to the Directors, but not to Lord Clive. With regard to overthrowing them I have the interest of the Company too much at heart to attempt any thing of that nature, even if they should behave towards me in the manner which I hear some of them have threatened to do. In short, there are a few individuals whom I never looked upon as my friends, or friends of the Company. Such cannot expect any countenance from me. You have often heard me express myself on that subject."

Mr. Scrafton, before receiving this letter, had written to Lord Clive[152], then at Walcot; and, after congratulating him on the resolution of the General Court on the subject of the jaghire, and wishing him long life to enjoy the prolonged period, proceeds to mention some reports which had reached the Directors, that he had in conversation expressed a wish that the Court were purged of the Chairman, and of many others of the Directors. Mr. Scrafton continues: "I suppose it a very impertinent misrepresentation of something that may have dropped from your Lordship in an unreserved conversation, for I would not wish you really to entertain such a design; for, whatever defects they may have, certainly the present Directors have the merit of having very steadily supported your Lordship while abroad, and are entirely disposed to pay the utmost attention to your advice at home." After pointing out the great evils that would arise from a change of system, the certain consequence of a change of Directors, he continues: "If your Lordship conceives any resentment on the conduct of the Directors respecting the jaghire, you will act from misrepresentation. One or two were cold on the subject, by believing themselves the objects of your resentment, in consequence of Wh—'s story; but the general sense was, 'We cannot, as Directors, recommend so large a grant: the fate the question met with before proves that many thought it too much; but we will give our votes for it.' To conclude, my Lord, I really think it for your own honour, and for the interest of the Company, to support the present set."

This attempt at a justification of the Directors roused Lord Clive, in spite of the state of severe suffering under which he then laboured. "I received your letter," says he in answer[153], "and return you many thanks for your congratulations about the jaghire. However, you will scarce believe me when I tell you that I was, before it was confirmed, and am at this time, very indifferent about it. My wish was to have it brought to a conclusion at any rate; for I could not avoid observing all parties at work to suspend coming to a conclusion; and many were at greater pains, from rank infernal jealousy and envy, to conceal and lessen my services, in order to lessen my influence: but, I thank God, I am now an independent man, what I was determined to be at all events.

"I cannot but take notice of one paragraph of your letter; that the Directors thought the grant too large, and therefore would not recommend it: I am therefore the more obliged to the Proprietors, who were all of a different way of thinking.

"I am obliged to you for your advice about my conduct towards the Directors, because I am persuaded you mean me well; but know, Scrafton, I have a judgment of my own, which has seldom failed me, in cases of much greater consequence than what you recommend. As to the support which, you say, was given to my government, when abroad, by the Directors, they could not have done otherwise, without suffering in their reputation, and perhaps quitting the Direction. In return, let me ask, whose interest contributed to make them Directors, and keep them so? My conduct wanted no support, it supported itself, because it was disinterested, and tended to nothing but the public good. From the beginning it put all mankind at defiance, as it does at this hour: and had the Court of Directors thought fit to make my conduct more public than they have done, all impartial and disinterested men must have done me justice. However, that remains for myself to make known, when convenient and proper.

"After having said thus much, I must tell you (though by your writing you seem to give credit to the report), that what Whately is said to have told Wedderburn is absolutely false, as is every thing else said to have been communicated by Mr. Grenville to Mr. Wedderburn; and I can attribute these mean suspicions of the Directors to nothing but their envy and jealousy. However, as I have often said before, and say now, there is nothing the Directors can do shall make me lose sight of the Company's true interest. Upon principle, I would always stand by the East India Company: I am now farther bound by the ties of gratitude. This is the ground upon which I now stand, and upon which I will risk my reputation. No little, partial considerations shall ever bias me."

For three years previous to this time, Lord Clive's mind had been kept painfully on the stretch. He had been compelled, almost singly, to combat a whole settlement, and especially the highest portion of it, in arms against him, eager to thwart and defeat his plans of reform; he had borne the whole weight of the resentment of the officers of the army, whom he subdued by his force of mind and unrivalled reputation; he had paid off a large portion of the Company's debt; had added an immense sum to their revenue, and had supplied them with an unparalleled investment; he had left their possessions in the East, as he believed, rich and flourishing, and in peace, and had returned with ruined health and a broken constitution. In all his trials, and in very painful circumstances, under which most men would have sunk, he had supported himself by the strong consciousness that he was doing his duty, and meriting the applause of his employers and of the world. It is not surprising, that when he thought himself deserted, and believed that he was the object of the jealousy and slight of the very persons whom he had so illustriously served, his disappointment and resentment should be extreme, and that his sensitive and exasperated mind should almost doubt the existence of human gratitude. But this feeling of disappointment never mingled itself with that of his attachment to the Company itself, as at this very moment, when he was giving vent to the feeling of his wrongs, we find him communicating to the Directors and their committees, with the utmost detail and clearness, his opinions on the whole concerns of the Company, civil, military, and political, in various letters of great length. He did, indeed, feel very acutely some appearances of what he thought want of due respect and consideration on the part of the Directors, in their mode of addressing him; but the whole powers of his mind and experience continued, as much as ever, at the service of the East India Company.

When the business of the jaghire was arranged, Lord Clive set out to visit some of the friends from whom he had been so long separated. In the last days of September, he had, at Birmingham, a very violent attack of bilious cholera, attended with excruciating pain. As soon as he was able he moved to Walcot, and spent the month of October chiefly there and at Styche, in the bosom of his family, and surrounded by his friends. At the latter place, he had another severe attack of the same complaint, attended with very painful symptoms; and it would appear, that he continued freely to indulge in the use of opium, as he had done while in Bengal, to moderate the violence of the paroxysms. His physicians at this time advised his return to Bath, as affording the best hope of promoting the restoration of his health; and he accordingly removed thither in November.

His views of affairs, both in England and India, with some particulars regarding himself, he communicated about this time in a letter to his friend Mr. Verelst. He had doubts whether that gentleman, upright, amiable, and intelligent as he was, possessed sufficient firmness for the difficult situation in which he was placed; and his advice is directed chiefly to encourage him in a bold and decided conduct, the only course by which it was possible to correct the deep-rooted abuses that prevailed in the service. "As my friendship for you," he writes[154] "is too warm and sincere to admit of any reserve, I shall make no apology for the freedom with which I intend, at all times, to communicate to you my sentiments upon the proceedings of your government, wherein your honour and reputation are so deeply concerned." After mentioning his own share in securing the confirmation of Mr. Verelst in his office, he proceeds: "But exclusive of the part I take in your success on my account, my regard and affection for you lead me to reflect, that the reputation as well as private satisfaction of your future life in England, must grow out of the honour which you may, and I trust will, acquire by a resolute and unspotted administration of the Company's affairs in Bengal. Your integrity and the goodness of your heart must be acknowledged by all who know you; and it is with pleasure I observe, that you have set out with a due attention to other necessary and public qualifications. Continue in the full exertion of that steadiness and resolution with which you began your government. Your judgment is sound. Set a just value, then, upon every opinion of your own, and always entertain a prudent degree of suspicion of the advice of any man who can possibly be biassed by self-interested motives. Before I touch upon particulars, permit me to urge, in general, the necessity there is for you and the whole Council and Committee to join in holding the military under due subordination and subjection. The dangerous consequences which may ensue from the least relaxation of command over a body so numerous as the English officers, should ever be thought of with horror, and the good effects of maintaining an inflexible authority cannot be too often recollected, in the instance of the late association.

"I am glad to find that you are upon your guard against the pride and ambition of the Colonel, who, if there be any merit in the conduct of the military officers, will certainly claim the whole to himself, and write the world to that purpose. His last, I should say his first dispute, whether the Governor or the Commanding Officer of the troops ought to have the title of Commander-in-Chief, was such an open and audacious attack upon the dignity of your office, that I am surprised you let it pass unnoticed. Had a minute been made of it, he would infallibly have been dismissed the service.

"It is with great concern I observe that you have consented to the increase of the military establishment, by the raising of four regiments of horse, which will be an exorbitant, and yet useless, expense. General Carnac knows, as I do, that black cavalry, instead of being serviceable, are very detrimental to us. I am also sorry, that you have augmented the artillery. One independent company at Calcutta, in time of peace, will answer every purpose. To have more, either there or at Ghyrotty, is only sacrificing the lives of so many men, without service. The Directors, I fear, will reprimand you on these matters, for they seem much inclined to lessen even the establishment I made for Bengal.

"The sooner you confine the whole of our force within the boundary of the Caramnassa the better. The Abdally's invasion of Bengal must be a mere bugbear. So long a march is next to impossible; and therefore I think he will never attempt it. The Mahratta is the only power we have to manage, as invasions from them must retard our revenues, though they cannot endanger our possessions.

"You certainly did well in persevering not to restore the Monghyr officers; and I hope you have obliged all, except the young lads, to embark for England.

"You will have heard, that all our letters and proceedings have been laid before both Houses of Parliament, and publicly read. Not only the Directors, but every man of consequence from Bengal, have been examined upon oath before the House of Lords; so that thousands of people are now well acquainted with the revenues, forces, and politics of India, and of Bengal in particular. Permit me here again, my friend, to remind you of the conspicuous situation you are placed in. Consider well the great expectations which this nation entertains of extricating itself out of its present difficulties, by the skill and conduct of the Governor of Bengal. You must therefore exert yourself to the utmost to fulfil its hopes; for, as I have already observed, hereupon depends, whether you will be a very respectable character, or not, upon your return to England.

"With regard to myself, my health has been very indifferent ever since my arrival; but I am now following a regimen which has done me much service, and will, I hope, recover me entirely. I have met with the most gracious reception from the King and Queen, and a very respectful and honourable one from the Court of Directors; nor is there any doubt of my getting an English Peerage, whenever I make application for that purpose, which, I understand, is always the custom: but the very unsettled Administration, and my private notions, will not admit of my applying at present. Hereafter, in all probability, the thing will come to pass.

"With regard to the Directors, I tell you frankly, that no one can entertain a worse opinion of many of them than I do. They have neither abilities nor resolution to manage such important concerns as are now under their care. Of this the world in general seem very sensible; and yet what to do I protest I know not. An attempt to reform may throw matters into greater confusion.

"You see my jaghire is at last continued to me and my representatives for ten years after the expiration of my present right. I am more obliged to the Proprietors for this grant than to the Directors, who threw a great deal of cold water upon it. Indeed, their whole conduct towards me and my associates in Committee has shown weakness, or something worse; for they have upon all occasions endeavoured to lessen the acquisitions we have obtained for them, and kept every thing that might contribute to our reputation as secret as possible; and, if Parliament had not brought our transactions to light, mankind would have been ignorant of what has been done. In short, they appear very envious and jealous of my influence, and give ear to every idle story of my being hostile towards them. Every thing looks as if we were not upon good terms. They have even asked my opinion upon their affairs in such a mean, sneaking manner, that I have informed one of them, unless I am applied to in form, and unless more attention be paid to my advice, I shall decline giving any whatsoever. Thus stand matters at present; but how long they may remain so I know not, nor what changes may happen at the next election.

"From the manner in which I carried the extension of the jaghire, I conclude the Directors will pay more attention to my opinions than they lately did; but it will be rather through fear than inclination. They desired, and I consented to a conference with them, and intended going to London from Shropshire on purpose; but my health has obliged me to come to Bath, where I daily expect a deputation to consult on many important points which the gentlemen cannot themselves readily determine upon."

His hopes of the efficacy of the Bath waters for removing his complaints were soon disappointed. Not experiencing that benefit from them which he had expected, his physicians recommended his leaving England for a season, and trying the air of the south of France. In the beginning of January, 1768, he removed from Bath to Berkeley Square; and on the 17th of that month, Mr. Strachey, in a letter to Mr. Verelst, written to recommend a young man, to whom Lord Clive had promised a letter, observes, "Knowing this state of the case, I think myself bound to acquaint you with it, for the physicians have wisely prohibited Lord Clive from all attention to business. He is to-day much better than when I wrote you t'other day; but we are taught not to expect his recovery without the assistance of the south of France."

But the activity of Lord Clive's mind was not easily restrained by bodily suffering. Even during this period he wrote several important letters to the Court of Directors, and to their Committees of Correspondence and Treasury, chiefly on their military affairs. On the 19th, he writes his friend Call at Madras: "I have suffered so much ever since my arrival in England, that I have not been able to interfere so much with public affairs as I could wish; and the bilious disorder is at last arrived at such a height, that there seems no other remedy but that of going to the south without delay; and in two hours I hope to be getting into my carriage for that purpose.

"With regard to the present Court of Directors, I can only say they are universally despised and hated; will certainly be hard pushed next April, and, if I and my friends do not support them, must fall. Their ignorance and obstinacy are beyond conception.

"I write the Nabob Mahommed Ali by this conveyance. The Queen received his presents in the most gracious manner from my hands. I was in private with her Majesty in her closet near an hour; and the chief part of the time was taken up about the Nabob and his prosperity. The Queen has promised me to write to him in the most gracious manner, and assured me at the same time of her disposition to render the Nabob any service in her power.

"We shall come very strong into Parliament this year—seven without opposition, probably one more; Lord Clive, Shrewsbury; Richard Clive, Montgomery; William and George Clive, Bishop's Castle; John Walsh, Worcester; Henry Strachey, Pontefract; and Edmund Maskelyne, probably either for Whitechurch or Cricklade.

"As things were too far advanced in favour of Dupré before my arrival, I take it for granted we shall see you next year, when I shall be glad to receive you with open arms, and assist you with all my interest in your parliamentary or any other views whatever; for, although I suffer excruciating torments from the nature of my disorder, yet, if we may credit the faculty, there is no danger of loss of life."

He set out, accompanied by Lady Clive and a small party, consisting of her relation, Mrs. Latham, Mr. Maskelyne, her brother, Mr. Strachey and Mr. Ingham. The change seems instantly to have produced a beneficial effect; and he had not long left England when we find, from the letters of his friends, that his improved state of health and freedom from pain enabled him to diminish the quantity of opium he had previously been obliged to use.

A few days after his arrival in Paris, he wrote Mr. Verelst as follows[155]:—"I am certain it will give you infinite pleasure to hear of my safe arrival at this place, and of my recovery beyond what either my friends or myself could have imagined or expected in so short a time. The remedy, I believe, was found out before I left England; but the travelling and climate have undoubtedly done me much good. In short, by the time I have spent a few months in the south of France, and drank the waters of Spa, I doubt not of enjoying a better state of health than I have done for some years.

"I cannot but acknowledge that my recovery gives me a more particular pleasure from the prospect I have of exerting myself in favour of the Company next winter, a time very critical for them indeed, since it will then be finally determined upon what footing they are to be in future; whether a part, or the whole, or none of the power be lodged in them hereafter. Let me tell you in secret, that I have the King's command to lay before him my ideas of the Company's affairs both at home and abroad, with a promise of his countenance and protection in every thing I might attempt for the good of the nation and the Company. Mr. Grenville also, who, I think, must be minister at last, paid me a visit at Berkeley Square, two days before I left London, and did me the honour to say, that, in his opinion, it was the duty of the Court of Directors to let no steps whatever be taken, either at home or abroad, without my advice; and to assure me that either in ministry or out of it, he would preach that doctrine in the House of Commons." In the sequel of this letter he advises the Governor to attempt to send home a million, or even two, of gold, and enters at great length into the impolicy of the Directors in their intentions to change the arrangements which he had made regarding the salt trade. His opinions on the latter subject are always clear and consistent; and he was strongly impressed with a conviction of the soundness of the advice which he uniformly offered on this very important point. The former advice proves, as does his whole correspondence, his undoubting belief, that Bengal, if its affairs were wisely and economically administered, would always afford a large available surplus. He complains justly, as many circumstanced like himself have since done, of the general ignorance that prevailed on Indian affairs. "It is certain," says he, writing about this time to a friend[156], "that both the Directors and Parliament are superlatively ignorant of our affairs abroad, notwithstanding the great lights received in the late inquiries; yet still they remain in the dark, and comprehend nothing about it. If my constitution would have admitted of my attending Parliament and General Courts, I am vain enough to think my knowledge and influence would have set things to rights. However, it is certain my own interest, my gratitude and affection for the Company, will not allow me to be silent; and if my constitution will not permit me to speak, I will most certainly write."

From Paris he proceeded to Lyons, and thence to Montpelier, where he resided for some time. Finding his health extremely improved, he returned to Paris, whence it would appear that he visited the Spa; and, in spite of the remonstrances of his physicians, who advised him to pass the winter on the Continent, returned to England, probably in the end of August or beginning of September.

During his absence the Parliament had been dissolved, and a general election had taken place, by the return of several members to which his political influence was considerably increased. He was at this time annoyed, for a moment, by a pamphlet which Sir Robert Fletcher published, regarding the proceedings on his court-martial, and was inclined to answer it; a resolution from which he was, with difficulty, diverted by the representations of his friends; who assured him, that Sir Robert's pamphlet had produced no unfavourable effect; as every military officer was of opinion, from Sir Robert's own statements, that he had been leniently dealt with.

Soon after his return to England, he had taken his place in Parliament for Shrewsbury; and he delivered his opinions in the House with considerable effect on Indian affairs, to which he confined himself. He also occasionally took a part in the proceedings of the Court of Proprietors. At this crisis, the terms of the agreement negotiated between the Government and East India Company became the subject of discussion; and the conditions were agitated by the adverse parties with uncommon heat in the General Courts. Lord Clive's temper, keen and impatient of controul, was but ill suited for such a warfare. He soon felt this, and wrote from Bath, where he had gone for his health, to communicate on the subject with his constant and valuable friend, Mr. Grenville, who gave him the soundest advice.

"Wotton, Dec. 29, 1768.

"My dear Lord,

"I am much obliged to you for the honour of your letter of the 24th of this month, which I received, together with the minutes of the last General Meeting of the East India Company, by the last post. I think that you are extremely in the right in your determination not to leave the care of your health during this short vacation, in order to attend at the next meeting for the consideration of the proposals from the Court of Directors to the Treasury, with the Treasury's answer, and the resolution of the Directors thereupon, which, you tell me, is postponed to the 4th of January next. The account which you have sent to me of what passed at the last Court, is of itself a sufficient reason, in my opinion, for your declining to attend at the next, whilst things are in the state of uncertainty and irregularity in which they appear to me; and, therefore, even if your health would allow it (the establishment of which must be with me and all your friends superior to any other consideration), yet I should not advise you to interfere in these questions till they come nearer to an issue. If these disputes shall be carried to greater lengths, your opinion will necessarily have still greater weight, both within doors and without: if, on the contrary, they shall all be agreed and settled before the next meeting, I do not see that your interposition will be attended with any credit to you, or advantage to the public. If this great question is to be brought before the Parliament, with every thing in a state of uncertainty, as it was last year, as you truly observe that it may be necessary for you to take some part there, it seems to me that it would be more desirable for you to keep yourself at liberty in that case, and not to pledge yourself beforehand to no purpose, at a General Court. These, my dear Lord, are my sentiments upon the general situation; which as you desired to know them, I have given to you with the utmost freedom. As to the particular proposals, I wish to reserve them till we meet, when we may consider them at large; whereas, at present, it is impossible for me, on many accounts, to enter into the discussion of them. I sincerely hope that the Bath waters may be attended with every benefit to you which you can desire from them; or, what is more, which your friends can desire for you. Mrs. Grenville joins with me in these wishes, as well as in presenting our respects to Lady Clive, and our best compliments to Mr. Strachey. I am, my dear Lord, with the most perfect regard and esteem,

"Your most affectionate friend
"and most faithful humble servant,

"George Grenville."

Mr. Grenville reverts to this subject in a future letter, in which, at the entreaty of a friend, he earnestly solicits Lord Clive not to interpose his negative on the proposition for restoring Sir Robert Fletcher to the Company's service. "Since I began this letter[157]," says he, "which I intended to have sent by the last post, but was prevented by an accidental illness, which, I hope, is now over, I have had an account of the bad news which has been received from the East Indies. This answers so exactly to what you foretold in the House of Commons, that it leaves those without excuse who have totally neglected all the means you then pointed out to obviate the evil consequences which are likely to attend their present situation. This event too is, I think, a fresh argument to confirm you in your former disposition, not to interpose in any private disputes, but to keep yourself in the honourable state of a public man, only contributing his advice and assistance when asked, to preserve to this country that great empire which he had so great a share in acquiring. These, my dear Lord, are my sentiments; and whether they are well founded or not, I am sure you will excuse my troubling you with them from the motive of it, which is the sincere regard I bear to you."

Lord Chatham having resigned his office of Privy Seal in October, 1768, and a reconciliation having taken place between him and Lord Temple, as well as between Mr. George Grenville and the Rockingham party, the opposition soon became very powerful, and united the principal talents of the country. Parties ran high, and the debates were often stormy. Lord Clive aided with all his influence his friend Mr. Grenville, to whom, both from public principle and private feeling, he was strongly attached. In one of the many political changes which took place at this time, Mr. Wedderburn was in danger of being deprived of a seat in the House; and from the following letter of Mr. Grenville, it appears that Lord Clive stepped forward in the handsomest manner to preserve to his party the benefit of that gentleman's great and useful talents.

"Bolton Street, May 10, 1769.

"My dear Lord,

"I have this moment received the honour of your letter, whilst Mr. Wedderburn was with me, to whom I have executed your commission. He is extremely sensible of this great mark of your Lordship's esteem and regard, and still more so of the very honourable manner in which you have made the proposition for rechoosing him into Parliament, which he desires me to assure your Lordship shall certainly remain a secret with him, till you give him leave to disclose it, though, as the offer which you made when this extraordinary measure of forcing him out of Parliament was first talked of, is already known to five or six different persons, that secret is not so entire as I now wish it was; however, I hope it will not get out, so as to be attended with the least inconvenience to you. If any thing could give me a higher opinion of your character and conduct than that which I entertained before, it would be your behaviour upon this occasion, which I am fully persuaded, as soon as it is proper to be known, the world will see with the same sentiments of approbation, though not with the same feelings of your constant friendship and kindness, which fill the mind of,

"My dear Lord,
"Your Lordship's most affectionate
"and most devoted humble servant,
"George Grenville."

Mr. Grenville's health had already began to decline, and soon after rapidly failed. His last exertion in the House, that of carrying through the Act which goes under his name for regulating the proceedings in the House of Commons in contested elections, was of itself a great public service. It was passed in April, 1770, and he died on the 13th of November following. This event was communicated to Lord Clive, then at Bath, by Mr. Wedderburn, in the following letter, which is also interesting in other respects:—

"My dear Lord,

"The misfortune we dreaded has at last happened. I could not prevail upon myself to send you the first account of it, knowing from my own experience how much you would feel upon such an occasion. I had it immediately in my view for three days together, and yet I was shocked with the event that I had expected.

"I am not able to send you any distinct account of the opening of the Parliament, for I have not yet been in the House of Commons; and if people would impute my absence to its true cause, a real indifference to all that passes there at present, I should continue for some time in the same ignorance. Mr. Woodfall has done me the honour of making me refuse an office that never was offered to me. If it had, your Lordship will do me the justice to believe, that you would not have received the first intimation of it from a newspaper. Whatever part I may take in this conjuncture, will never be decided without the fullest communication with you; and I am persuaded your Lordship's sentiments upon the present unfortunate occasion are so similar to those I feel, that no circumstance is likely to make us think differently. It is possible, I believe, even in these times, for a man to acquire some degree of credit without being enlisted in any party; and, if it is, the situation, I am sure, is more eligible than any other that either a Court or an Opposition have to bestow.

"If Bath agrees with your Lordship, as I trust it does, I should not wish to see you in town; but I very much wish that it were in my power to make you a visit at Bath: I should then have the pleasure of hearing your sentiments upon the present state of affairs, which I assure you, without any sort of compliment, but in the plainest sincerity, will always have more weight with me than perhaps you will wish them to have; and I should likewise have the good fortune to escape hearing the sentiments of people who, in this town, have no other employment than to speculate for their neighbours."

"Lincoln's Inn Fields,
"14th November, 1770."

Lord Clive's answer is equally creditable to his heart and understanding;

"Bath, 18th November, 1770.

"Dear Sir,

"If the receipt of your very obliging and confidential letter had not roused me, I doubt much whether I should have prevailed upon myself to put pen to paper, though there is something within that tells me, I shall at last overcome a disorder so very distressing both to the mind (and to the body). Although the waters agree with me better than any place I have yet tried, yet by my feelings, a journey abroad I fear must be undertaken, before I can obtain a perfect recovery of my health.

"Mr. Grenville's death, though long expected, could not but affect me very severely. Gratitude first bound me to him: a more intimate connection afterwards gave an opportunity of admiring his abilities, and respecting his worth and integrity. The dissolution of our valuable friend has shipwrecked all our hopes for the present; and my indisposition hath not only made me indifferent [to the world of politics[158]], but to the world in general. What effect returning health may have, I cannot answer for; but if I can judge for myself in my present situation, I wish to support that independency which will be approved of by my friends in particular, and by the public in general. My sentiments are the same as yours, with regard to our conduct in the present times.

"Your delicacy towards me serves only to convince me of the propriety of my conduct in leaving you the absolute master of your own conduct in Parliament, free from all control but that of your own judgment, and I am happy in this opportunity"—(defect in the MS.)

"Your great and uncommon abilities must sooner or latter place you in one of the first posts of this kingdom; and you may be assured no man on earth wishes to see your honour and your independency firmly established in this kingdom, more than,

"Dear Sir,
"Your affectionate friend,
"and obedient servant,
"Clive."

Mr. Grenville's death was felt by Lord Clive as a great and almost irreparable loss. That statesman was the person in public life to whom he had always most closely attached himself. Mr. Grenville's great political experience, his honourable disposition, his warm and unvarying friendship, made Lord Clive ever ready to listen to his advice, and in general willing to follow it. On his death, the party, which had been kept together chiefly by his personal influence, separated, some accepting office with the Minister, among whom was Mr. Wedderburn, who was made Solicitor-General; others joining the Rockingham party, then in opposition. For some time Lord Clive seems to have avoided taking a decided part in public affairs, though his parliamentary interest, independent of the weight of his personal character, would have made him a valuable acquisition to any party. Perhaps, before definitively making up his mind, he wished to ascertain the line that each was disposed to take in Indian affairs. He was thus thrown adrift on the sea of politics. That he belonged to no party bound in honour to support and do him justice, and so was occasionally exposed to the hostility of all, was perhaps one of the greatest of evils to one who had so many bitter enemies as Lord Clive, and was one of the misfortunes which he owed to the death of his excellent friend Mr. Grenville.

His time was not wholly occupied by public business. He gave up much of it to the numerous friends who were warmly attached to him, and he did not neglect his private concerns. He had purchased several noble estates in different parts of the country, and in the choice of them was not inattentive to the object of increasing his parliamentary influence. On these properties he had several mansion houses, though Walcot continued to be his favourite residence. He purchased from the Duchess of Newcastle, the noble property of Claremont, and made several changes on that magnificent place: at Bath he acquired the lease of Lord Chatham's house. In London, he still had his house in Berkeley Square. The old family seat of Styche, now much improved, was generally occupied by some of his relations. He indulged the natural liberality of his disposition by living in a style of considerable splendour, and he laid the foundation of a choice collection of paintings, by the purchase of several master-pieces of the Italian schools.

Though only in his forty-sixth year, his friends were already fast falling around him. He had lost two sisters while he was absent in India. In May, 1771, he had to lament the death of his aged father, as he had of his sister, the Honourable Mrs Sempill, before the year was done.

The occupations which engaged him in public life, whether in Parliament or at the India House, were not of a nature to fill or satisfy a mind like his. He lived at a period when there was a rapid succession of administrations, produced more by intrigue and party arrangements than by any grand national object. There was much indecision, and a remarkable want of any commanding talent in all the various ministries that were formed. Clive, accustomed to an almost unlimited command over many provinces, often sickened almost as much at the inadequate and temporising measures of Parliament, as at the quarrels of the Directors, or the petty but exhausting intrigues of the India House; and in many parts of his correspondence vents his longings for the ease and quiet of a country life; longings perfectly sincere and natural, but the indulgence of which, to one of his ardent and restless character, so long accustomed to the agitations of public business, would probably have failed to bring the happiness which he anticipated.

Affairs in India had in the mean time taken a very unfavourable turn. Even during the three years of the government of Mr. Verelst, a man of good judgment, of industry, and the purest intentions, a deficiency of funds was severely felt. This was not so much from a decline in the revenues, though Lord Clive had perhaps estimated them beyond their real amount, as from various other causes. The civil, military, and commercial expenses were daily increasing, when the steady hand that had checked their natural tendency to excess was removed. Immense sums were spent on building forts, barracks, &c.: the system of overcharge, and waste, from design or carelessness, again pervaded every branch of the service: the pay of the whole superior officers, civil and military, which had formerly been chiefly defrayed by the Salt Society, now fell directly on the revenues. The whole course of commerce, which had been disordered for some years, was disordered still more by the immense investments raised for the Company, not as formerly in exchange for bullion or silver imported from Europe, but from the revenues of the country itself, and with all the disadvantageous circumstances attending a political monopoly; for, while the exportation of bullion to China continued, even the sums formerly brought by foreigners had ceased; as the English, who had large private fortunes to remit home, supplied them liberally with funds in India, in exchange for bills on Europe, which prevented for a time the importation of the precious metals as merchandise. Clive's last act had been to withdraw the Europeans from out-stations, and to limit their interference with the internal trade; a measure which, however exceptionable it would be in a country where equal law existed, had become absolutely necessary where European delinquency had no adequate check, and where the grossest injustice could be practised by white traders and their agents, on the timid and defenceless natives. Soon after the Company had abolished the Salt Society, professedly on the general principle of hostility to monopolies, and to restore the trade to the natives, they published the order declaring the trade open to all, whether natives or Europeans; an act by which, contrary to their intentions, they in reality restored a more grievous and exceptionable monopoly than that which had existed before. Besides all this, the unfortunate and ill-conducted war on the Coromandel Coast, made it necessary to send large sums from Bengal to that quarter.

There is, perhaps, no instance in history of a country that has continued, for any considerable length of time, to send a very large proportion of its revenues, as a regular tribute, out of its own territory. The difficulty is to get a country, however rich, to be able to supply the expenses of its own government. This, even in the most favourable circumstances, is no easy task. A bold, active, and resolute ruler, like Frederick of Prussia, or Lord Clive, may, by the force of personal character, reduce expenses, for a given time, within the narrowest bounds; but the natural tendency of a prosperous country is, to contrive means of consuming on the spot, by indulgences, which come to be considered as necessaries, and by corresponding salaries or allowances, the whole sum that is raised by taxation. A country like Bengal, in which the European, so far as the native was concerned, was subject to the influence of no public opinion, and so far as regarded his own countrymen, to a very imperfect one, was not likely to form an exception to this rule. The golden dreams, in which all parties had indulged from the wealth of the country, were rudely disturbed, though none were quite sure of the exact causes.

We have already seen that an agreement, for one year, was concluded between the Government and the Directors, in 1767, and renewed in the ensuing year, by which the Company became bound to pay 400,000l. in each of these years to the Government. When the agreement was about to expire, the Directors were again strongly pressed by the Government, and after some negotiation a bargain was concluded, by which the Company agreed to pay to the public the sum of 400,000l. annually, for five years longer; besides undertaking to export a certain value of British goods: they were to be at liberty to increase their dividend, during that time, to 12½ per cent., the increase not to exceed 1 per cent. in any one year. If the Company were under the necessity of reducing their dividend, an equal proportion was to be deducted from the annual payment to Government; and if their dividends were reduced to 6 per cent., the payment to the public was to cease altogether. Provision was also made for the case of a large surplus, and its appropriation prescribed.

This agreement was violently opposed in every step of its progress. Among others, Lord Clive, we have seen, was decidedly hostile to it, and used every exertion, not only with the Directors, and in the Court of Proprietors, but in his place in Parliament, to prevent its being concluded. He was of opinion that the Directors sacrificed the interests of the Company to their fears, and that the Ministers extorted unreasonable concessions from their weakness. Writing to his brother-in-law, the Hon. Colonel Sempill, while the Act was in progress, he says[159], "My journey to the south of France and the Spa waters has restored me to more health than I have enjoyed for some years; and I think, in a very short time, I shall be tired of the bustle going on in this busy world, and seek for ease in a retired country life. The newspapers will make known to you the distracted state of affairs in almost every part of the extended empire of Great Britain. It is no wonder that our East India affairs should partake of the same confusion. Administration, and the Directors, seem to think of nothing but the present moment. The one seems resolved to strip the Company of all they can; and the other to submit to any thing, rather than risk their stations, power, and authority at the next general election."—"Parliamentary concerns have embroiled me more than is good for my health, and already I begin to grow tired of them."