croaching on the very monopoly he had sanctioned. The directors, therefore, have ceased to be grateful, for his critical friendship; and his dexterity has set afloat an incroaching, but modest, plan of reform, which will divide the proprietary into hostile factions, and ulti mately, it may be hoped, undo the original mischief of his protection.

MR. FOX's india bill was proposed to the house of commons, and adopted by parliament about ten years before the renewal of the India company's charter. It evidently contemplated the total expiry or suppression of that charter, and made such provisions for the eventual government of Hindostan, as would have rendered unnecessary the directory in Leadenhall street. A coalition between the king's friends and the company, disappointed the nation of this great benefit; and a perpetuation of the monoply was purchased by facilitating to the sovereign the choice of his ministers, from motives of personal favouritism, in opposition to parliamentary recommendation.

At length the commercial interest is discovering, that it would be possible to conduct an immense trade to the East Indies, by small shipping, with limited capitals, in disconnected ventures, through commission-houses, who, if voluntary colonization was permitted, would long ago have settled in all the sea-ports of Flindostan, and who are, nevertheless, growing up there from natural causes.

The long credit given at home by the British manufacturers, makes it for the interest of all speculative merchants rather to export manufactured produce, than dollars, or any ready money articles; so that a prodigious quantity of wrought goods, of all kinds, would have forced themselves into Hindostan, through these channels, if the charter had died away, which the company has no motive to carry thither. B this

time, probably, fifty times the quantity now sent, would have been in regular demand. A corresponding importation of oriental produce, would have enriched the state through the customhouses, and the country through the merchants. English bankers, without number, would have established dependent houses in the peninsula, and would have lent out the inexhaustible coinage of their paper-mints, at the usurious ins terest of Asia; thus halving with the very industry they would there put in motion its exorbitant profits. It is not extravagant to estimate at a hundred millions, the increase of British capital which from, this source would have already accrued. The facility with which, on the supposition of open trade, fortunes of all kinds could have been remitted home, must sensibly have accelerated the importation of individual opulence. And the innumerable forms of temptation to go out as colonists, would have provided luxuriously for a larger number of our well-born youth, than the late war has destroyed. Nor ought any apprehensions to be enter tained of the inconvenience of over rapid colonization. The English administration of Hindostan is circumstanced like that of China; it can extend its feelers at will, over unclaimed and immeasurable provinces, comparatively desert, and create there the prosperity which is to enrich its agents.

The natural tendencies of society cannot effectually be resisted, even by the restrictions of law, or the confederacies of corruption: like the force of vegeta

tion, they crevice and break down, at last, the walls of man. Within the proprietary, we had almost said within the directory of the company, persons are now found disposed gradually to convert clandestine into private trade; and private trade dependent on the directory, into a private trade independent of the directory; and who are about to pursue a parliamentary sanction for that very independence. The outcry concerning chartered rights, is, indeed, not wholly forgotten; and a great deal of precaution and prudence, not to say sophistry and chicane, is necessary to persuade both the proprietary and the public, that these innovators, but innovators for a beneficial purpose, and in a useful direction, have no incroachments in view, no wish to induce a new minister to infringe, in the least, on the contracts of his predecessors, no wish, under pretence of explaining and amending the act of 1795, to rescind some of its more oppressive provisions, and to break down the oligarchy of directorial monopoly, into the aristocracy of proprietary privilege.

"The policy of the legislature appears to have been, by reserving certain rights to the public under this act, capable in their exercise of attaining this end, to make, if possible (as Mr. Dundas has well stated it), the whole trade and produce of India, in the first instance, centre in Great Britain, either for the consumption of this country, or for re-exportation to supply the wants of other countries. The British manufacturer, the Indian artisan, and the British resident merchant (the intermediate link between both); these were the three parties whose industry, skill, and enterprize, it was the immediate object of the legislature to cherish and promote. The British manufacturer was to be furnished with the means of exporting to the fullest extent the produce of his industry, and of bringing back the raw materials from India; the native artizan was to be encouraged to quicken and enlarge his produce; the free merchant was to be incited to abandon the clandestine commercial intercourse, which hitherto necessity had compelled him to maintain with foreign nations, and to make his industry and capital as much as possible the means of benefiting both the company and the nation, by providing for them a channel of direct communication with the parent state; to individuals in general, scope was to be given to the remittance of their fortunes from abroad; and for the country at large, by these means, was to be realized the hope of finally rushing this clandestine trade, and of making it centre

in the river Thames. These were the main commercial objects to be accomplished by the act of parliament of 1793, and the relative minds, when we are looking at the principles, situation of all these parties, must be in cur and examining into the effect of this act.

"In tracing the several commercial provisions contained in this act, we may plainly observe, that, with a view to the joint prosperity of British India and Great Britain, parliament inferred, that the system the most to be desired, was that which, not infringing on the company's exclusive trade, increased enlarged the imports of Asiatic produce; the exports of British manufactures, and and, consequently, had in its contemplation to encourage, by every practicable facility, the means by which so beneficial an end might be attained. The means originally. in the contemplation of the legislature, was, a reasonable rate of freight,' whereby goods of much bulk, but not of proportional value, might, on the one hand, be carried to the eastern, and, on the other, be brought home to the British market, notwithstanding their distance from each other, so as still to afford a reasonable profit to the adventurer. The legislature, therefore, bound the company to become parties to this end, by compelling them to appropriate 3000 tons, at the least, annually to the private trade of individuals to and from India. The means, therefore, which lying within the limits of the rights vested in the public, to participate in this private trade, by the act of 1793, but realize the views of parliament, compatibly with the principles already stated, and the rights conferred on the company by this act, are those which good policy invite the nation to adopt.

There are two ways of prosecuting this end. First, in the manner provided for by the act of 1798, obliging the company to supply the tonnage required. Next, by allowing individuals to send home this surplus produce on India-built shipping, Which of these modes is the best adapted to accomplish the intentions of the legislature? Let us examine them separately.

"First, the statutable tonnage. How far has this provision answered the original design of the legislature, of modifying the monopoly of the company, so as to throw open this surplus market to the capital of British subjects, and make it centre in Great Britain? Certainly, but feebly. In many respects it has proved very insufficient. In the first place, it fell infinitely short of the quantity required, which, on an average of five years subsequent to the act of 1793, has not been less than 5000 tons annually. In the next, it was provided irregularly by the company, and at uncertain and inconvenient periods. The surplus demand not merely for individuals, but likewise for the company's own wants, was met with India shipping by the government of Bengal

Occasionally, in consequence of the war, the company were unable to provide any portion of the tonnage thus allotted to individuals by the act of 1793. Twice has the whole nearly been provided by the government in India. The rate of freight was still too high, combined with other charges, to encourage the British manufacturer to export his own commodities, although below the actual rate at which this freight was charged to the company. And lastly, the exercise of this privilege was attended with such inconvenience to the free merchants, arising out of the regulations of the company, as, in point of fact, almost to defeat its end. In regard to the British manufacturer, Mr. Dundas states, in his letter to the chairman of the court of directors, dated the 2d of April, 1800, that the measure has proved a nugatory one.' The court of directors, in their report, corroborate this affirmation, by observing, that nothing has been exported by the British manufacturer, under this privilege. They add, the manufacturers have made so little use of it to the present day, that they need not be further considered under this privilege. In support of the just representations of the free merchants, of all the inconveniences and discouragements to which they are exposed by the present mode of providing them with tonnage from Great Britain, by the company, the court of directors, in this report, attest the truth of them, and close a candid enumeration of the principal hardships to which the free merchants are subject, from the regulations relating to the company's shipping, by observing they have just grounds of objection,' and that it is fit all inconveniencies of this kind should be remedied. Mr. Dundas, in the letter above quoted, impressed with the justice of these representations, and well acquainted with their effect on the interests of the public, likewise adds, Although I proposed this measure, I should be uncandid if I did not fairly acknowledge, that experience has proved it to be inadequate to the purposes for which

it was intended.'·

"It is clear, therefore, that experience has shewn the following inconveniencies to have resulted from this plan. First, it has not answered the intentions of the legislature towards the British manufacturer. Next, it has fallen infinitely short of its intentions towards the British resident merchant, in as much as that, as Mr. Dundas observes in his letter of the 2d of April, 1800: In so far as the provision went to secure the transfer of the capital of our servants in India to this country, through the medium of trade, it is clearly ascertained, that the measure was a nugatory one.' And lastly, that the company has itself sustained a considerable loss, to the extent of near 70,000. in providing this freight for the private trade of individuals, without any

benefit arising to them therefrom; the re port admitting, that they have charged individuals considerably less than they have themselves specifically paid for the goods of those individuals to the ship owners.'

"Of the failure of this plan, therefore, there can be no doubt; and there can be as little of the necessity of substituting another, of repealing this clause, and of relieving the company from the onerous and wasteful obligation it imposes on them."

We apprehend the directors have very sound reasons for not wishing to be relieved from the onerous condition in question: while they superintend the private trade, they well know how to chalk limits for it. Nor have they been at all illiberal in devising regulations of accommodation to perform the spirit of their agreement, when they might avail themselves more rigidly of its letter.

It cannot be doubted, that the commerce of the East Indies, and of the connected islands, is too rapidly passing into the hands of smugglers, of foreign ers, of Americans and Danes. The boldest and most efficient remedy would be, to buy in the charter of the company before its natural death; to open the trade at once and entirely, between all the ports of Britain and Hindostan; and to repeal so much of the navigation-act itself, as interferes with the use and transfer here of teak-shipping: Large indemnities would, no doubt, be requi site to the directors, the proprietors, and the servants of the company; but a loan secured on the territorial revenue of Hindostan, might easily be raised there, wholly adequate to the purchase, not merely of a just, but of a voluntary

surrender.

This letter, which is distinguished for the perspicuous elegance of its composition, suggests another system.

"The remedy proposed is, to provide a fleet of extra vessels, of an inferior equipment to the company's regular shipping, to be built by contract, for the purpose of accommodating the free merchants, which fleet is to be freighted to them at a rate equal to the freight of the India-built ships of last season. Beyond this the directors do not offer any other mode of removing the griev

ance.

"What then are the objections to this remedy as it respects the company, the free merchants, and the public? In these three points of view we must consider it.

First, as it relates to the company. It is obviously exposing them to the risk of having these ships occasionally sail, and re

turn in ballast, because, in the first instance, they are not to interfere with the regular shipping destined to carry on the exclusive trade of the company, which it is an object of high national policy to protect, which can only be observed by liberal freights, and can alone be respectable while science illumines the minds of its officers: and in the second, the free merchants cannot ensure to the company a regular permanent freight, as their speculations and purchases must entirely be regulated by the state of the markets in India, and the extent of the demands in Europe for the articles wherein they are allowed to traffic. The free merchants will not speculate but on a previous certainty of an adequate and immediate supply of tonnage for their goods; and the company cannot depend on a regular, constant demand for the tonnage they send out; and yet, at a venture, they must provide the tonnage, without the necessary intelligence as to the extent of what is required. But beyond this, it is universally admitted, that these Indiabuilt ships are more substantial, better formed, and sail at a much cheaper freight than the company's extra ships. In engaging, therefore, to provide such a fleet for the free merchants, without even any adequate security for the regular and full occupation of its tonnage, at a freight as low as the free merchants pay to the owners of India shipping, of course they take on themselves to pay the difference between British and Indian freight to the owners of these extra ships. And as they admit, in their report, that they have already sustained a considerable loss by so doing, it therefore appears, waving the difficulty of confining this fleet invariably to its precise object, which recent experience shews to be impracticable, not only that the principal inconveniencies to which the free merchants are exposed by the present mode of supplying them with tonnage, would not be removed by the remedy that is thus proposed; but that the further result of such a measure, as it affects the interest of the company, would only be to augment considerably this loss, by incurring the risk, in the first instance, of sending out a fleet to India, without a certainty of obtaining cargoes home; and, in the next, in the event of such a fleet, or a larger one, being required, to swell considerably this loss to the company, which must increase in a ratio with the growth of the trade, since in proportion to the increase of the trade, which is largely expanding itself, they propose to augment their improvidence, by increasing the tonnage. Such a plan, therefore, is not suitable to the true interests of the company. "With respect to the free merchant, his objections against it are not less solid. He tells us justly, that he is embarrassed if compelled, under any modification, to depend on the company for tonnage; that he can neither suitably arrange his freight, or dis

tribute his cargoes; that his trade is not a trade of large profit to the individual; that it consists of such articles chiefly, as are either new to the commerce of Great Britain, or rejected by the company; that it is carried on at a comparatively low rate of freight, with strict economy, and extraordinary expedition; that its end is to meet, not only the home, but the foreign markets, on reexportation, and yet maintain a superiority therein; and that on such principles only, can this end be realized that it is evident, from the experience of the last seven years, that the tonnage engaged in England by the company, for the service of India, can never be rendered a practicable channel by which the private British trade can rival the foreigner, the great object of the legislature to accomplish, and which the Warehousing act' of 1799, regulating the duties on East India goods, is designed to effect, its preamble declaring its object to be, to secure to this country the benefit of an extended trade in goods, the produce and manufacture of the East Indies: That these are not the opinions of the free merchants alone; that the unvarying opinion of all the ablest servants of the company, both who are, or have been in India, points out to the company and the nation, the expedience of employing India-built shipping in the private export trade to Great Britain, as the only class of shipping capable of substantially enlarging the commercial intercourse between both countries, without affecting, at the same time, the exclusive trade, and chartered privileges of the East India company.

"With respect to the public, the subject is still of a deeper importance. It involves not only commercial, but political considerations of the first magnitude. It has long. been admitted, that a scarcity of ship-timber, fit for the purposes of our navy, is felt in this country. The report of the commissioners appointed by parliament, in the year 1787, to investigate into the state of the crown lands, but too well cautions the public against the danger of this evil increasing; and the act of the legislature, restraining the company from building any more ships till their tonnage was reduced to about 40,000 tons, was wisely framed to check its progress. Since this report was published, notwithstanding the watchful care of the legislature, it has extended itself in an alarming degree, and the enormous increase in the price of shipping since the year 1792, and, consequently, in the rates of freight, is an evil that is too generally felt, both in our naval arsenals, and by the commercial community, not to challenge the most serious attention. We are threatened with an ultimate failure in these great and useful supplies, on which so essentially depend the prosperity of our manufactures, the security of our trade, and the preservation of our independence. The separation of America

deprived this country of an annual accession of shipping to a great amount. In one year, perhaps, it has been 200 or 300 sail of vessels; and although our trade has increased considerably since that period, yet no adequate supply of British tonnage has been provided, equal to the enlarged demands of our most extensive and increasing commerce. Hence, it has been admitted, by the best and first authorities, that we have out-traded our shipping; and that a remedy is necessary with a view to the relief of our trade, and the protection of our navy. The most desirable remedy seems to be, to diminish the consumption of British timber, and increase the quantity of British ship ping. But the plan of the directors, by proposing to create an additional fleet, which can only be built and kept up by further inroads on the national stock of shiptimber, is, in point of fact, when our situation is considered, but proposing in other words, to aggravate a very serious evil. What is it but subtracting from the British tonnage what is wanted here, to augment the Indian tonnage which is not required there? not only the timber requisite for such a purpose will be considerable, but the increased consumption of naval stores which must in consequence en-' sue, will also,, in its effect, contribute to swell the evil, by increasing the price of ships and naval stores, and enhancing on exportation the freight and cost of British manufactures, to the general detriment of this country. Such a plan seems most injudicious.

"The next most obvious mode that occurs, is to provide this fleet in a way not liable to these objections, and that shall at the same time answer the double purpose of increasing the quantity of British shipping, without di minishing the stock of British timber. To India alone can we look for this double advantage. Our possessions in that quarter abound with forests, containing timber more durable in its quality, and larger in its growth, than any to be met with in the woods of Europe. The numberless rivers that descend from the Malabar mountains, afford a ready opportunity of floating this timber to our dock-yards. The mountains bordering on the west of Bengal, afford abundance of timber fit for the purposes of ship

building, and large plantations of teak are already spreading over our provinces in Bengal. Here, therefore, is a nursery from whence we may draw the most valuable supplies; and while we retain our empire in India, the navy of Great Britain, in the event of a failure in our national stock, may still be kept up in all its strength and glory. Upon grounds of general policy, both political and commercial, we are called upon to cherish these springs, from whence, in the day of need and difficulty, we may derive such va luable aid; for there can be no doubt, but that timber produced in India may be so ap-· plied to the purpose of ship-building, as to lead to consequences highly important and advantageous, not only to the commercial and political interests of Great Britain, but likewise to those of British India. grounds of commercial policy, we ought to give every encouragement to the trader from British India, to supply the British manufacturer with the raw material as cheap as possible. On the cheapness and superior excellence of our manufactures, depend their extensive circulation. The interests of the British manufacturer, therefore, depend on the facility given to the free merchant to reach our markets. How is this to be done, but by enabling the trader from India to bring home this raw material at as low a rate as possible? And how is this to be effected, but by enabling him to import it here as expeditiously as he can, and at as low a freight as he can obtain in India ?”

On

We trust that these discussions will be the means of scattering much in、 struction among the mercantile world, relative to the practicability and desirableness of a very general and direct par ticipation in the trade to India; and thus of generating among them a dif fusive wish to save the country from being cut up into monopolies; and to rescue its fair commerce from the restrictions of such ministers as have lent their instrumentality to the great com. panies of London, to the prejudice of free and open national trade.

A DEBATE, reported by Mr. Woodfall, carries with itself the sanction of its accuracy: let it suffice to open the pleadings in the words of Mr. Twining. "Mr. Twining also observed, that very soon after the renewal of the company's charter, he had communicated to the proprietors his apprehensions concerning the views of the private traders. If, then, he

remained silent upon the present occasion, it might perhaps be imagined, that he had altered his opinion; or, at least, that he was This, however, was so far from being the become luke-warm in the support of it. case, that all the circumstances respecting private trade which had happened from that time to this (and they were numerous and important) had tended to confirm the opinion which at first he entertained; and he