Part 1 of 2
CHAP. VII.
Second Administration of Clive—Company’s Orders respecting the Private Trade disregarded—Arrangements with the Vizir—With the Emperor—Acquisition of the Duannee—Private Trade created a Monopoly for the Benefit of the superior Servants—Reduction of the Military Allowances—Its effects—Clive resigns, and Verelst succeeds—Proceedings in England relative to the Rate of Dividend on Company’s Stock—Financial difficulties—Verelst resigns, and Cartier succeeds.
Lord Clive, together with Mr. Sumner and Mr. Sykes, who had accompanied him from England, and were two of the persons empowered to form the Select Committee, arrived at Calcutta, on the 3d of May, 1765. The two other persons of whom that extraordinary machine of government was to be composed, were absent: General Carnac, beyond the confines of the province of Bahar, with the army; and Mr. Verelst, at the distant settlement of Chittagong. For as much as the disturbances, which guided the resolves of the Company, when they decreed that such a new organ of government should exist, were now removed; and for as much as the Select Committee were empowered to exercise their extraordinary powers for so long a time only as those disturbances should remain; it was a question, whether they were entitled to form themselves into a governing body; but a question of which they speedily disposed.241 On the 7th of May, exactly four days after their arrival, Lord Clive, and the two gentlemen who accompanied him, assembled; and without waiting for communication with the rest of the destined members declared the Select Committee formed; assumed the whole powers of government civil and military; and administered to themselves and their secretaries an oath of secrecy.
The great corruption which they represented as prevailing in the government, and tainting to a prodigious degree the conduct of the Company’s servants, was the foundation on which they placed the necessity for the establishment of the Committee. The picture which they drew of these corruptions exhibited, it is true, the most hideous and the most disgusting features. But the impartial judge will probably find, that the interest of the Committee to make out the appearance of a strong necessity for investing themselves with extraordinary powers, after the original cause for them had ceased to exist, had some influence on their delineations. In the letter, addressed to the Committee, with which Lord Clive opened their proceedings, on the 7th of May, “A very few days,” he says, “are elapsed since our arrival; and yet, if we consider what has already come to our knowledge, we cannot hesitate a moment upon the necessity of assuming the power that is in us of conducting, as a Select Committee, the affairs both civil and military of this settlement. What do we hear of, what do we see, but anarchy, confusion, and, what is worse, an almost general corruption.—Happy, I am sure, you would have been, as well as myself, had the late conduct of affairs been so irreproachable as to have permitted them still to continue in the hands of the Governor and Council.” Yet one would imagine that four days afforded not a very ample space for collecting a satisfactory body of evidence on so extensive a field, especially if we must believe the noble declarer, that the determination to which it led was a disagreeable one.
“Three paths,” observed his Lordship, when afterwards defending himself, “were before me. 1. One was strewed with abundance of fair advantages. I might have put myself at the head of the government as I found it. I might have encouraged the resolution which the gentlemen had taken not to execute the new covenants which prohibited the receipt of presents: and although I had executed the covenants myself, I might have contrived to return to England with an immense fortune, infamously added to the one before honourably obtained.—2. Finding my powers disputed, I might in despair have given up the commonwealth, and have left Bengal without making an effort to save it. Such a conduct would have been deemed the effect of folly and cowardice.—3. The third path was intricate. Dangers and difficulties were on every side. But I resolved to pursue it. In short, I was determined to do my duty to the public, although I should incur the odium of the whole settlement. The welfare of the Company required a vigorous exertion, and I took the resolution of cleansing the Augean Stable.”242
Another circumstance deserves to be mentioned, of which Lord Clive takes no notice in his speech, though on other occasions it is not forgotten; that without the formation of the Select Committee, he would, as Governor, have enjoyed only a shadow, or at best a small fragment of power. In his letter to the Directors, dated the 30th of February, in which he describes the transactions of the first five months of his new administration, he says, “The gentlemen in Council of late years at Bengal, seem to have been actuated, in every consultation, by a very obstinate and mischievous spirit. The office of Governor has been in a manner hunted down, stripped of its dignity, and then divided into sixteen shares,”—the number of persons of whom the board consisted.—“Two paths,” he observes, in nearly the same language as was afterwards used in his speech, “were evidently open to me: The one smooth, and strewed with abundance of rich advantages that might easily be picked up; the other untrodden, and every step opposed with obstacles. I might have taken charge of the government upon the same footing on which I found it; that is, I might have enjoyed the name of Governor, and have suffered the honour, importance, and dignity of the post to continue in their state of annihilation. I might have contented myself as others had before me, with being a cypher, or, what is little better, the first among sixteen equals: And I might have allowed this passive conduct to be attended with the usual douceur of sharing largely with the rest of the gentlemen in all donations, perquisites, &c. arising from the absolute government and disposal of all places in the revenues of this opulent kingdom; by which means I might soon have acquired an immense addition to my fortune, notwithstanding the obligations in the new covenants; for the man who can so easily get over the bar of conscience as to receive presents after the execution of them, will not scruple to make use of any evasions that may protect him from the consequence. The settlement, in general, would thus have been my friends, and only the natives of the country my enemies.” It deserves to be remarked, as twice declared by this celebrated Governor, that the covenants against the receipt of presents afforded no effectual security, and might be violated, by the connivance and participation of the presiding individuals, to any amount. It follows, as a pretty necessary consequence, that independent of that connivance they might in many instances be violated to a considerable amount.
The language in which Clive describes the corruption of the Company’s government and the conduct of their servants, at this era, ought to be received with caution; and, doubtless, with considerable deductions; though it is an historical document, or rather a matter of fact, singularly curious and important. “Upon my arrival,” he tells the Directors, “I am sorry to say, I found your affairs in a condition so nearly desperate, as would have alarmed any set of men, whose sense of honour and duty to their employers had not been estranged by the too eager pursuit of their own immediate advantages. The sudden, and among many, the unwarrantable acquisition of riches, had introduced luxury in every shape, and in its most pernicious excess. These two enormous evils went hand in hand together through the whole presidency, infecting almost every member of each department. Every inferior seemed to have grasped at wealth, that he might be enabled to assume that spirit of profusion, which was now the only distinction between him and his superior. Thus all distinction ceased; and every rank became, in a manner, upon an equality. Nor was this the end of the mischief; for a contest of such a nature among our servants necessarily destroyed all proportion between their wants and the honest means of satisfying them. In a country where money is plenty, where fear is the principle of government, and where your arms are ever victorious, it is no wonder that the lust of riches should readily embrace the proffered means of its gratification, or that the instruments of your power should avail themselves of their authority, and proceed even to extortion in those cases where simple corruption could not keep pace with their rapacity. Examples of this sort, set by superiors, could not fail of being followed in a proportionable degree by inferiors. The evil was contagious, and spread among the civil and military, down to the writer, the ensign, and the free merchant.”243 The language of the Directors held pace with that of the Governor. In their answer to the letter from which this extract is taken, they say, “We have the strongest sense of the deplorable state to which our affairs were on the point of being reduced, from the corruption and rapacity of our servants, and the universal depravity of manners throughout the settlement. The general relaxation of all discipline and obedience, both military and civil, was hastily tending to a dissolution of all government. Our letter to the Select Committee expresses our sentiments of what has been obtained by way of donations; and to that we must add, that we think the vast fortunes acquired in the inland trade have been obtained by a scene of the most tyrannic and oppressive conduct that ever was known in any age or country.”244
The letters from the Court of Directors, commanding the immediate and total abandonment of the inland trade and the execution of the new covenants against the receipt of presents, had arrived on the 24th of January, 1765, previous to the formation of the treaty with Nujeem ad Dowla. Yet so far was the inland trade from being abandoned, that the unlimited exercise of it, free from all duties except two and a half per cent. upon the article of salt, and along with that unlimited exercise, the prohibition, or what amounted to the prohibition, of all other traders, the exaction of oppressive duties, from which the English were exempt, had been inserted, as leading articles, in the treaty. Again, as to what regarded the covenants, not only had presents upon the accession of Nujeem ad Dowla been received, with unabated alacrity, in defiance of them; but they remained unexecuted to that very hour. The Committee of the House of Commons could not discover from the records that the Governor had so much as brought them under the consultation of the Council Board; and it is certain that no notice whatsoever had been communicated to the other servants of the Company, that any such engagements were required.
The execution of the covenants, as a very easy and simple transaction, was one of the earliest of the measures of the Committee. They were signed, first by the Members of the Council, and the servants on the spot; and afterwards transmitted to the armies and factories, where they were immediately executed by every body; with one remarkable exception. General Carnac, when they arrived, distributed them to his officers, among whom the signature met with no evasion. But general Carnac himself, on the pretence that they were dated several months previous to the time at which intimation of them was conveyed to him, forbore privately to execute his own. A few weeks afterwards, upon his return to Calcutta, he signed it, indeed, without any scruple; but, in the interval, he had received a present of two lacs of rupees from the reduced and impoverished Emperor.
The Nabob, Nujeem ad Dowla, hastened to Calcutta, upon the arrival of Clive; and being exceedingly displeased with the restraints imposed upon him, presented a letter of complaints. Mahomed Reza Khan, whose appointment to the office of Naib Subah was the most offensive to the Nabob of all the hard conditions to which he had been compelled to submit, had given presents on account of his elevation to the amount of nearly twenty lacs of rupees. There was nothing, in this, unusual or surprising; but the Nabob, who was eager to obtain the ground of an accusation against a man whose person and office were alike odious to him, complained of it as a dilapidation of his treasury. The servants of the Company, among whom the principal part of the money was distributed, were those who had the most strongly contested the authority of Clive’s Committee; and they seem to have excited, by that opposition, a very warm resentment. The accusation was treated as a matter of great and serious importance. Some of the native officers engaged in the negotiation of the presents, though required only for the purpose of evidence, were put under arrest. A formal investigation was instituted. It was alleged that threats had been used to extort the gifts: And the Committee pronounced certain facts to be proved; but in their great forbearance reserved the decision to the Court of Directors. The servants, whose conduct was arraigned, solemnly denied the charge of using terror or force; and it is true that their declaration was opposed by only the testimony of a few natives, whose veracity is always questionable when they have the smallest interest to depart from the truth: who in the present case were not examined upon oath; were deeply interested in finding an apology for their own conduct, and had an exquisite feeling of the sentiments which prevailed towards the persons whom they accused in the breasts of those who now wielded the sceptre. There seems not, in reality, to have been any difference in the applications for presents on this and on former occasions, except perhaps in some little ceremoniousness of manner. A significant expression escapes from Verelst, who was an actor in the scene; “Mahomed Reza Khan,” he says, “affirms that these sums were not voluntarily given. This the English gentlemen deny. Perhaps the reader, who considers the increased power of the English, may regard this as a verbal dispute.”245
On the 25th of June Lord Clive departed from Calcutta, on a progress up the country, for the purpose of forming a new arrangement with the Nabob for the government of the provinces, and of concluding a treaty of peace with Suja Dowla the Vizir.
The first negotiation was of easy management. Whatever the Committee were pleased to command, Nujeem ad Dowla was constrained to obey. The whole of the power reserved to the Nabob, and lodged with the Naib Subah, was too great, they said, to be deposited in a single hand; they resolved, therefore, to associate the Rajah Dooloob Ram, and Juggut Seet, the Hindu banker, with Mahomed Reza Khan, in the superintendance of the Nabob’s affairs. To preserve concord among these colleagues, it was determined to employ the vigilant control of a servant of the Company, resident upon the spot. The Nabob was also now required to resign the whole of the revenues, and to make over the management of the Subahdaree, with every advantage arising from it, to the Company; by whom an annual pension of fifty lacs of rupees, subject to the management of their three nominees, were to be allowed to himself. The final arrangement of these terms was notified to the Committee on the 28th of July, by a letter dispatched from Moorshedabad, whence, a few days before, Clive had proceeded on his journey.
The army had prosecuted the advantages gained over the Vizir; and at this time had penetrated far into the territories of Oude. The arrangement, however, which had been concluded with the Emperor, and in conformity with which the English were to receive the Gauzeepore country for themselves, and to bestow the dominions of Suja Dowla on the Emperor, had been severely condemned by the Court of Directors. They denounced it, not only as a violation of their repeated instructions and commands not to extend the dominions of the Company; but as in itself an impolitic engagement; full of burden, but destitute of profit.246 Lord Clive, and, what is the same thing, Lord Clive’s Committee, professed a deep conviction of the wisdom of that policy (the limitation of dominion) which the Directors prescribed;247 declaring, “that an influence maintained by force of arms was destructive of that commercial spirit which the servants of the Company ought to promote; oppressive to the country, and ruinous to the Company; whose military expenses had hitherto rendered fruitless their extraordinary success, and even the cession of rich provinces.”248
After the battle of Buxar, the Vizir, who no longer considered his own dominions secure, had sent his women and treasures to Bareily, the strong fort of a Rohilla chief; and, having gained as much time as possible by negotiations with the English, endeavoured to obtain assistance from Ghazee ad dien Khan, from the Rohilla chiefs, and a body of Mahrattas, who were at that time under Mulhar Row, in the vicinity of Gualior. The Mahrattas, and Ghazee ad dien Khan, with a handful of followers, the miserable remains of his former power, had, in reality, joined him. But the Rohillas had amused him with only deceitful promises: And he had been abandoned even by Sumroo; who, with a body of about 300 Europeans of various nations, and a few thousand Sepoys, was negotiating for service with the Jaats.
The English had detached two battalions of Sepoys, which took possession of Lucknow, the capital of Oude, and made an attempt upon the fortress of Chunar, the strength of which enabled the garrison to make a successful resistance; when the preparations of Suja Dowla induced Sir Robert Fletcher, on whom, till the arrival of Carnac, after the departure of Sir Hector Munro, the command of the troops had devolved, to endeavour to anticipate that Nabob by taking the important fortress of Allahabad. Nujeef Khan, as a partisan of the Emperor, had joined the English with his followers from Bundelcund, and being well acquainted with the fortress, pointed out the weakest part. It was speedily breached; and the garrison, too irresolute to brave a storm, immediately surrendered. Soon after this event General Carnac arrived, and took the command of the army. The situation of the enemy, which rendered their designs uncertain, puzzled, for a time, the General; who over-estimated their strength, and was afraid of leaving the frontiers exposed. Having received undoubted intelligence that the enemy had begun to march on the Corah road; and suspecting that an attack was designed upon Sir Robert Fletcher, who commanded a separate corps in the same direction; he made some forced marches to effect a junction with that commander; and, having joined him, advanced with united forces towards the enemy. On the 3d of May a battle was fought in the neighbourhood of Corah; or rather a skirmish, for, by the absence of the Rohillas, and the weakness of Ghazee ad dien Khan, the force of the Vizir was inconsiderable, and he was still intimidated by remembrance of Buxar. The Mahrattas, on whom he chiefly depended, were soon dispersed by the English artillery. The Vizir separated from them; and they retired with precipitation towards the Jumna. Observing the English to remit the pursuit in order to watch the Vizir, who made no attempt to join his allies, they ventured a second effort to enter Corah. To stop their incursions the General resolved to drive them beyond the Jumna; crossed that river on the 22d; dislodged them from their post on the opposite side; and obliged them to retire to the hills.
The Vizir impelled, on the one side by the desperate state of his affairs, on the other by hopes of moderate treatment from the English, resolved to throw himself entirely upon their generosity, by placing his person in their hands. On the 19th of May, General Carnac received, written partly by the Nabob with his own hand, a letter, in which he informed that officer that he was on his way to meet him. The General received him with the highest marks of distinction; and all parties recommended a delicate and liberal treatment. The final settlement of the terms of pacification was reserved for the presence of Clive. As it was unanimously agreed, that it would cost the Company more to defend the country of the Vizir, than it would yield in revenue; that Suja Dowla was more capable of defending it than the Emperor, to whom it had been formerly promised, or than any other chief who could be set up; and that in the hands of the Vizir it might form a barrier against the Mahrattas and Afghauns; it was determined to restore to him the whole of his dominions, with the exception of Allahabad and Corah, which were to be reserved to the Emperor.
When the first conference was held with the Vizir on the 2d of August, he strongly expressed his gratitude for the extent of dominion which his conquerors were willing to restore; and readily agreed to the payment of fifty lacks of rupees demanded in compensation for the expences of the war: But, when it was proposed to him to permit the English to trade, free from duties, and erect factories in his dominions, he represented so earnestly the abuses which, under the name of trade, the Company’s servants and their agents had perpetrated in the provinces of Bengal, Bahar, and Orissa; and expressed with so much vehemence his apprehension of disputes, and the impossibility they would create of long preserving the blessings of peace, that Clive agreed, in the terms of the treaty, to omit the very names of trade and factories.
The Raja Bulwant Sing, who held, as dependencies of the Subah of Oude, the Zemindarees of Benares and Gauzeepore, had joined the English and rendered important service, in the late wars against the Vizir. It was, therefore, incumbent upon them to yield him protection against the resentment of a chief whose power he could not resist. The Vizir bound himself not to molest the Rajah, in the possession of his former dominions; and the Rajah was held bound to pay him the same tribute as before. The Vizir and the English engaged to afford assistance, each to the other, in case the territory of the other was invaded; and the Vizir engaged never to harbour or employ Meer Causim or Sumroo.
The business with the Emperor was the next subject of negotiation which claimed the exertions of Clive. Of the annual tribute to the Emperor, contracted for in the names of Meer Jaffier, Meer Causim, and Nujeem and Dowla, as the imperial revenue from Bengal, Bahar, and Orissa, thirty lacks were unpaid. Of this debt, the indigent sovereign was frankly and definitively told, that not a single rupee would ever be given him. The sum which had, under the English authority, been assigned as the share due to him of the revenue of these provinces, was twenty-six lacks of rupees in money, and jaghires or land to the annual amount of five lacks and a half. The jaghires, it was now made known to him, he must henceforth renounce. He expressed warmth, and even resentment, upon the hardness of these arbitrary conditions; but the necessities of the humbled monarch left him without means of relief. The twenty-six lacks of rupees were continued as his portion of the revenues; and he was put in possession of the countries of Corah and Allahabad. On his part was required the imperial grant of the duannee, or collection and receipt of the revenues, in Bengal, Bahar, and Orissa. The phirmaun of the duannee, which marks one of the most conspicuous eras in the history of the Company, constituting them masters of so great an empire, in name and in responsibility, as well as in power,249 was dated the 12th day of August, 1765. Along with the duannee was required of the Emperor his imperial confirmation of all the territory which the Company possessed throughout the nominal extent of the Mogul empire. Among these confirmations was not forgotten the jaghire of Lord Clive; a possession, the dispute about which that powerful servant had compromised before his departure from England, by yielding the reversion to the Company, after ten years’ payment, if so long he should live.
It was in the course of this summer that, in pursuance of the terms of the treaty concluded in Europe between the English and the French, the settlements of that nation at Chandernagor and other places in Bengal, were restored.
On the 7th of September, Lord Clive resumed his seat, in the Select Committee; in which the urgent questions respecting the inland trade now constituted the grand subject of consultation. The Company’s letter of the 8th of February, 1764, completely prohibiting the inland trade of their servants, was taken into consideration by the Board, on the 17th of October, in the same year. And it was resolved that all the branches of that trade, which it was worth while to carry on, should still be stedfastly retained; but that proper respect should be shown to the commands of their masters; and what was of no value to keep should be immediately and completely resigned. The grand articles of the interior trade of Bengal were salt, beetel-nut, and tobacco; of which salt was out of all proportion the most important: Tobacco in particular was so inconsiderable, that few, if any, of the Company’s servants had engaged in it. The determination was, to give up the tobacco, preserving and securing the beetel-nut and the salt. It must not, however, be forgotten that an order was now issued, prohibiting the practice of forcing the natives to buy and sell at any price which the Company’s servants thought proper to command.
On the 1st of June, 1764, a letter was written by the Court of Directors, in consequence of the resolution of the Court of Proprietors that the letter of the 8th of February should be reconsidered. In this, the Directors declared, that the terms imposed upon Meer Causim for the regulation of the private trade in the interior “appeared to them so injurious to the Nabob and the natives, that they could not, in the very nature of them, tend to any thing but the producing general heart-burning and dissatisfactions: That the orders, therefore, in their letter of the 8th of February should remain in force until a more equitable and satisfactory plan could be formed and adopted; and, as it was impossible for them to frame such a plan at home, destitute as they were of the informations and lights necessary to guide them in settling such an important affair—the Committee were therefore ordered, as soon after the receipt of this letter as might be convenient, to consult the Nabob as to the manner of carrying on the inland trade, and thereupon to form a proper and equitable plan for that purpose, and transmit the same to the Directors; accompanied by such explanations, observations, and remarks, as might enable them to give their sentiments and directions thereupon in a full and explicit manner:—And in doing this, as before observed, they were to have a particular regard to the interest and entire satisfaction of the Nabob.” It was agreed, in general consultation at Fort William, on the 25th of January, 1765, to defer all proceedings on this order, till the arrival of Lord Clive; and in the mean time, in defiance of both letters, the course of the inland trade remained undisturbed.
One important circumstance in the letter of the 1st of June, the Directors themselves interpreted, one way; their servants in India chose to interpret, another. The servants inferred that the letter empowered them not only to contrive a plan, but also to put it in practice. It was maintained on the other hand, that the letter only authorized them to devise a plan, and transmit the account of it to the Directors. The letter, as usual, was vague and ambiguous; and those who had to act upon it, at so vast a distance, preferred, as might have been expected, the interpretation which best suited their own interests.
It is worthy of particular remark, that Lord Clive, as he declares to the Directors themselves,250 framed the plan, which was afterwards adopted, during his voyage to India. But, as he could not then have any lights which he had not in England, he might, unless he had determined not to be governed by the Directors, have opened to them his project, before he departed; and have allowed to his masters the privilege of deciding.
It is not less worthy of remark, that Clive and the other Members of the Select Committee; Carnac excepted, who had not left the army; formed a partnership before the beginning of June, for buying up large quantities of salt; that all the purchases were made during the month of June, and that in nine months the parties realized a profit, including interest, of about forty-five per cent. In apology for Clive, it was stated, that he brought out with him three gentlemen from England, Mr. Strachey, his secretary; Mr. Maskelyne, an old friend and fellow-servant of the Company; and Mr. Ingham, his surgeon; and that for the sake of making a fortune to them he engaged in that suspicious transaction. If a proceeding, however, is in its own nature shameful; there is but little saved, when the emolument is only made to go into the pocket of a connexion.
On the 10th of August, after these purchases had for some time been completed, and after certain inquiries had been made respecting the usual prices of salt in different places; it was resolved, in a Select Committee composed of only Mr. Sumner and Mr. Verelst, That a monopoly should be formed of the trade in salt, beetel-nut, and tobacco, to be carried on exclusively for the benefit of the superior servants of the Company. After several consultations, the following rules were adopted: That, deducting a duty to the Company, computed to produce 100,000l. per annum, the profits should be divided among three classes of proprietors: That, in the first class, should be allowed; to the governor, five shares; to the second in council, three shares; to the general, three shares; ten gentlemen of council, each, two shares; two colonels, each, two shares—in all thirty-five: That, in the second class, consisting of one chaplain, fourteen senior merchants, and three lieutenant-colonels, in all eighteen persons, two-thirds of one share should be granted to each, or twelve shares to the whole: In the third class, consisting of thirteen factors, four majors, four first surgeons at the presidency, two first surgeons at the army, one secretary to the council, one sub-accountant, one Persian translator, and one sub-export-warehouse-keeper, in all twenty-seven persons, one-third of a share should be distributed to each, or nine shares to the whole: That a committee of four, empowered to make bye-laws, borrow money, and determine the amount of capital, should be appointed for the entire management of the concern: That the purchases should be made by contract: That the goods should be conveyed by the agents of the association to certain fixed places, and there sold to the native merchants and retailers at established and invariable prices: That the exclusive power of making those purchases should be insured to the association for one year: And that European agents should be allowed to conduct the business of the society in different parts of the country.
In defence of this scheme, it was urged, that by the prohibition of presents, and the growing share of the export and import trade engrossed by the Company’s investment, the pay of their servants was reduced to the means of a bare subsistence; that besides the hardship of this policy, the wisdom was very defective, since it was absurd to suppose that men deprived of the means of enriching themselves by legitimate, would abstain from illegitimate means, when placed to a boundless extent in their power; that a too rapid enriching of their servants, by enabling them to hurry to England, and leaving none but inexperienced youths to conduct their affairs, was ruinous to their interests; and that, by the admirable arrangements of the trade society, a proper fortune was secured to those who had attained a certain station in the service, without incurring the danger of sending them home enriched at too early a period.
Upon these arguments, one reflection cannot be withheld, because the occasions for its application are exceedingly numerous, and because it appears, unhappily, to be not frequently made. It is contrary to experience, that by deriving large emoluments from an office the person who holds it will be less eager to grasp at any unlawful gains which are within his reach. The avidity for more is not in general diminished by the amount of what is possessed. A trifling sum will doubtless lose something of its apparent magnitude in the eye of a man of wealth; but the vast sums are those alone which are of much importance; and they, we find, are as resistless a temptation to the rich as to the poor. The prevalence of the idea that satiating the servants of the public with wealth is a secret for rendering them honest, only proves how little the art of government has borrowed as yet from the science of human nature. If, with immense emoluments, a door is left open to misconduct, the misconduct is but the more ensured; because the power of the offender affords him a shield against both popular contempt and legal chastisement. If the servants of the Company, as Clive and his Committee so positively affirmed, had it in their power, and in their inclination, to pillage and embezzle, when their incomes were small; the mere enlargement of their incomes would add to the power, and could not much detract from the inclination.
At the time of these proceedings, the Select Committee were deprived of the shelter even of an ambiguous expression; and knew that they were acting in express defiance of the wishes and commands of their superiors. Under date the 15th of February, 1765, the Directors had written in the following terms: “In our letters of the 8th February, and 1st June last, we gave our sentiments and directions very fully in respect to the inland trade of Bengal;—we now enforce the same in the strongest manner, and positively insist that you take no steps whatever towards renewing this trade, without our express leave; for which reason you must not fail to give us the fullest information upon the subject, agreeable to our abovementioned directions.”
Having thus established the private trade Society, the Committee proceeded to introduce other regulations which the state of affairs appeared to require. It had been a common practice with members of the Council, instead of remaining at the Board for the business of the Presidency, to receive nomination to the chiefship of factories, as often as additional means of accumulating money were there placed in their hands. To this practice the Committee, on very good grounds, resolved to put an end. “We are convinced,” they said, “by very late experience, that the most flagrant oppressions may be wantonly committed in those employments, by members of the Board, which would not be tolerated in junior servants; and that the dread and awe annexed to their station, as counsellors, has too frequently screened them from complaints, which would be lodged without fear or scruple against inferior servants.” Yet, with this experience before them, they recommended great emoluments as a security against corruption. The Committee further remarked, that not only the business, which was thus engrossed by the Members of the Board, could be as well transacted by a junior servant, at much less expense; but that other inconveniences, still more pernicious, were incurred; that by the absence of so many members of the board, it had been necessary to increase their numbers from twelve to sixteen; that by the regular departure to the out-settlements of those Members of the Council who had the greatest influence to procure their own appointment, there was so rapid a change of counsellors at the board, where only the youngest and most inexperienced remained, that the business of the Presidency was obliged to be conducted by men deficient in the knowledge and experience necessary for carrying it on.