orders having not yet been received, nor indeed written, another
year was allowed by Mr. Verelst, the new Governor, and his Council,
to the Society of Trade, to collect their debts, and realise their
capital. It was not till September, 1768, that it ceased; and the
Court of Directors having, in December, 1769[86], by a sudden and
singular departure from their opinions, so strongly announced, sent
out instructions to lay open the inland trade to all persons, as well
natives as Europeans, a proclamation to that effect was published
at Calcutta, on the 12th of December, 1770. The effect of this
essential change in the Company's plans on the future prosperity of
the provinces, it is no part of the present Memoir to investigate; but
it is very plain, that, by admitting Europeans into the inland trade,
in the state in which the country then was, they really did away with
all the benefit that could in any way have been expected to arise from
abolishing the monopoly.
But whether Lord Clive's opinions regarding the trade in salt were
sound or not, one thing at least is evident,--he was perfectly
conscientious in the advice he gave, and on the measures he adopted,
on that subject. This is plain from his whole conduct, and from his
correspondence, public and private, with numerous persons, while
in India. Nor did his anxiety on the subject cease, even after he
had reached England, when all private interest in the subject,
if he can be supposed ever to have had any, must have been over.
Finding accidentally, some months after his arrival, that the plan
of abolishing the Salt Society continued to be entertained, he
explained his views on the subject to the Committee of Treasury and
Correspondence of the Directors, in a detailed and laboured letter.[87]
He pointed out the advantages of the trade as then regulated, as
the best fund that the Company could appropriate for the payment,
without grudging or envy, of their superior servants: that it enabled
them to regulate the emoluments of their servants, according to their
own wishes; that by it, their servants had the appearance of being
paid, not by the Company, but by the profits of their own trade,--an
advantage not attending any payment by a percentage on the revenue. "If
you grant a commission upon the revenue," says he, "the sum will not
only be large, but known to the world; the allowance being publicly
ascertained, every man's proportion will at times be the occasion of
much discourse, envy, and jealousy; the great will interfere in your
appointments, and noblemen will perpetually solicit you to provide
for the younger branches of their families." It is evident, that his
views originated not in principles of political economy, but of policy,
forced upon him by the circumstances in which India was placed. His
efforts were directed to insure a desirable object, in what he deemed,
not certainly the best, but the only practicable mode.
In spite of this remonstrance, the Committee came to the resolution
of throwing the trade open, imposing only a duty of 10 rupees on the
hundred maunds of salt. Lord Clive again addressed them[88], showing
that they were in reality giving up 300,000_l._ per annum, for a tax
of only 31,500_l._; and pointed out that, even on their plan, the trade
would continue in some degree a monopoly, and that the servants would
still be concerned in it to what extent they pleased, under their
banyans and black merchants. His expressions in writing the same day
to Mr. Verelst, show how sincere and deep-rooted his opinions on the
subject were. Sending him a copy of his letter to the Committee, he
adds, "What attention they will pay to my representations I know not:
but I have such confidence in your honour and zeal for the Company's
welfare, that I cannot help hoping you will take care that the Company
be not deprived of 300,000_l._ per annum, however peremptory the orders
of the Directors may be."
The letter of the 20th of November, 1767, already mentioned, was
written soon after. The only effect of this remonstrance was a change
by which the duty was to be advanced to a sum not exceeding 120,000_l._
Lord Clive points out, in several confidential letters to Mr. Verelst,
the want of information of the Directors on this occasion, and the
pernicious consequences likely to result from the change. That he
was sincere, admits not of a doubt. His opinions on the subject he
maintained uniformly to the last hour of his life, and the events seem
to have justified his foresight.
The tax, as regulated by him, certainly was a monopoly, and so far was
exceptionable; but he might justly maintain that the real question was,
Are the evils arising from this monopoly, or from the licentiousness
of the rulers of the country, if penuriously paid, most to be dreaded?
and of this he had no doubt. Even from the question of the comparative
merits of a monopoly and free trade, political considerations,
unfortunately, could not be altogether excluded. The society of trade
was abolished under pretence of being a monopoly. This was not,
however, the real cause. That society excluded from the salt trade a
body of powerful and wealthy Europeans, who raised a clamour, in name
of the natives, but solely for their own private views. On the plan,
as reformed by Lord Clive, the natives were restored to their former
employment, and Europeans excluded. But when the trade was thrown open
to all indiscriminately, natives and Europeans, the change, though in
form the result of sound principles of government and of political
economy, was really, in substance, quite the reverse. The two parties
did not come into the field on equal terms; the society of trade had a
direct interest that no oppression should be exercised on the natives
in their dealings over the country; and being composed of the leading
men of the government, had the means of affording them protection. But
when the trade was reduced to a scramble between Europeans having the
whole authority of the country, and natives who had none; when redress
was to be sought by the natives from their very rivals and competitors;
their condition became hopeless; and that fact sufficiently accounts
for the melancholy nature of the history of the inland trade in
succeeding years.
Two charges connected with this transaction of the salt trade were
afterwards brought against Lord Clive: the first, that he obstinately
persisted in disobeying the orders of the Company for its abolition;
the other, that by having a share in it as Governor, he in some measure
deviated from his plan of not trading, and of deriving no pecuniary
benefit to himself from his voyage to India.
As to the first, we have seen that several letters were certainly
received from the Court of Directors, after his arrival in Bengal,
declaring their decided hostility to their servants engaging in the
inland trade at all, and especially in that of salt. But a comparison
of dates has shown that these letters were directed, not against any
measures of Lord Clive, which were not then known, but against the
grossly unjust and pernicious proceedings which took place before his
arrival. To the letter of the Select Committee of Calcutta, of the
30th of September, 1765, detailing the plan for the first society of
trade, an answer, dated the 17th of May, 1766, was received on the
8th of December following: and so far was Lord Clive from obstinately
persisting in continuing the trade, as has been asserted, that on
the 24th of the following month, while hardly yet recovered from a
dangerous illness, he declared the society abolished, at the close
of the season. He had fixed so limited a period as one year for its
duration, because it was only experimental, and to admit of any change
suggested by the Directors.
The second charge was, that, as a sharer in this society of trade, he
had deviated from his intention expressed in his letter to the Company,
not to improve his fortune by his voyage to India.
His share as Governor in the society of trade (a concern, the details
of which were entirely confided to a committee, and the operations of
which he knew only from their result) was certainly very different in
its nature from private trade on his own account. To his intention
not to increase his private fortune by the emoluments of his office,
or by trade in any shape, he religiously adhered. Of the allowances
to the Governor, the honorary presents that could not be refused
without giving offence, the proceeds of the Governor's share of the
society of trade, with all other emoluments annexed to his office,
he caused a distinct account to be kept. Out of it were defrayed his
expenses as Governor, and by the surplus he did not benefit. He had
taken with him to India three gentlemen: Mr. Maskelyne, his friend and
near connection; Mr. Henry Strachey, his private secretary; and Mr.
Ingham, his family physician;--no large establishment for a Governor
leaving his family and going abroad in the circumstances Lord Clive
did. The sums in question were employed in remunerating them, and
some persons of his household; and by the account kept of these and
of all other sums received by him from the time he left England till
his return, which was communicated to the Company, and afterwards
laid before Parliament, far from having added, in any respect, to his
private fortune, as this charge supposes, it has never been disputed
that there was a balance of 5816_l._ 16_s._ 9_d._ against it. If these
gentlemen were remunerated, therefore, it was not at the Company's
expense, by any extraordinary charges upon them; but at the expense of
the Governor, who gave up to them the allowances which he might have
retained to himself.[89] The charge was really as unfounded as it was
ungracious, and, it is to be observed, was brought against him by men
who had shown no such pecuniary delicacy.
Of another charge, also brought some years after, against Lord Clive's
administration, that of having fixed an improper rate of exchange
between the gold and silver coinage of Bengal, it is not necessary to
say much. In India, gold and silver coin are articles of trade even
more directly than in most countries in the world, and the variation
in their relative value is often extremely great. In the year 1766,
a scarcity of silver existed in Bengal, from the quantity exported
to China, from decreased importation, and other causes. It was known
that there was much gold in the country, in various shapes; and
to inexperienced political economists it seemed a very reasonable
expedient to give a premium for its being brought out. A favourable
rate was therefore fixed on the new gold mohur then coined. This
certainly had the effect of bringing gold to the mint; but, as might
have been foreseen, only increased the evil, by causing still more
silver coin to be withdrawn from circulation. The bankers and shroffs
of the country, who are proficients in the science of exchange,
naturally paid their demands in gold, and exported or hoarded the
silver. The gold coin they were unwilling to receive at its legal
value, without a large batta, or exchange, in reality to compensate
its inferior intrinsic value as compared with silver, the ordinary
circulation of the country. This necessary measure of self-defence was
regarded as a trick or fraud in trade. The proclamation of 30th June,
1766, directing the coin to be taken at certain rates, was one of those
ineffectual attempts to force circumstances, formerly so usual with
politicians of every class and of every country. It was, of course,
ineffectual; and necessarily occasioned no small inconvenience to
merchants and retail traders. Its effects were chiefly felt after Clive
had left India. The Court of Directors, from their correspondence,
seems to have been nearly as much puzzled as the Council of Calcutta;
though the fact, that the difference of market value between the gold
and the silver coin rose to 17-1/2 per cent., ought to have afforded
an easy explanation of the difficulty.[90] Yet those who recollect
the discussions, in our own times, in the British parliament, on the
difference of value between the guinea and the bank note, and on the
bullion question in general, will not be disposed to view with much
surprise a similar difficulty that occurred in a distant country, half
a century before.
Though these charges were brought against Lord Clive long afterwards,
yet, as they all relate to India, it has been judged best to state them
at this period of his career, when he was still engaged in his active
services in that country.
Our attention has hitherto been too exclusively directed to Lord
Clive's civil and military reforms, to admit of any connected view of
the very important treaties which he negotiated with the native powers,
and which really changed the face of India. We have seen that one of
his first objects, after his arrival in Bengal, was to conclude a
peace with Sujah-u-Dowlah, the Vizier, Nabob of Oude, and to make some
arrangement with our ally, the King. The war, though successful, had
long been carried on at an expense ruinous to the Company's finances.
With these objects he resolved to combine a settlement with the young
Nabob of Bengal (whose finances were in disorder), so as to place
his and the Company's affairs on a definite and solid basis. Clive
had left Calcutta on the afternoon of the 25th of June, 1765, and on
the 9th of July writes to the Select Committee, that the business of
Nujm-u-Dowlah's durbar was perfectly finished. By the arrangement
then entered into, provision was made for the management of public
affairs at the Nabob's court, and in the three provinces, the immediate
administration of which was committed to Mahommed Reza Khan, Doolubram,
and Jugget Seit, and regulations were signed by them and the Nabob for
that purpose. A barrier was thus provided against the shifting policy
and intrigues of a corrupt court, and a weak and ignorant prince. At
the same time Lord Clive procured from the Nabob a sunnud for the
reversion in perpetuity of his jaghire to the Company. But he now
plainly saw that things could not stop where they were. The truth is,
that it was now clear enough, that two independent governments could
not exist in the country at the same time. The one must swallow up the
other; and the Company having the sword in their hand, and not being
disposed to recede, it was necessary to reduce the Nabob to a cipher.
Two days afterwards[91] Clive writes to the Select Committee;--"We have
often lamented that the gentlemen of the Council, by precipitating the
late treaty, had lost the most glorious opportunity that could ever
happen of settling matters upon that solid and advantageous footing for
the Company, which no temporary invasion could endanger. The true and
only security for our commerce and territorial possessions in this
country is, in a manner, always to have it in our power to overawe
the very Nabob we are bound by treaty to support. A maxim contrary to
this has of late been much adopted; and from that fundamental error,
as I may call it, have sprung the innumerable evils, or at least
deficiencies, in our government, which, I have now the pleasure to
inform you, are in a fair way of being perfectly removed.
"The Nabob, upon my representation of the great expense of such an
army as will be necessary to support him in his government, the large
sums due for restitution, and to the navy, together with an annual
tribute, which he will be under a necessity of paying to the King,
hath consented, and I have agreed, provided it should obtain your
approbation, that all the revenues of the country shall be appropriated
to those purposes, 50 lacs of rupees excepted. Out of this sum is to be
defrayed all his expenses of every nature and denomination. Mahommed
Reza Khan, however, being of a disposition extremely timorous, is
desirous of having the payment of the cavalry and sepoys pass through
his hands, though included in the said 50 lacs. This, I think, will be
complied with.
"I am of opinion also, that certain stipends, out of the above
mentioned sum, should be fixed for the Begum, for the Chuta Nabob,
and for the rest of the Nabob's brothers and nephews, Miriam's son
included; or else we must be subject to frequent complaints from those
quarters; for I am persuaded that the dependents and parasites of the
present Nabob will always keep him in distress, be his income what
it may. Although the sum proposed to be stipulated for the Nabob,
considering the present great expenses and demands, may appear large,
yet, by what I now learn, his expense exceeds the sum to be allowed;
and although it is certain that neither his education nor abilities
will enable him to appear to any advantage at the head of these great
and rich provinces, yet, I think, we are bound in honour to support the
dignity of his station, so far as is consistent with the true interest
of the Company.
"The particulars of this matter may be farther adjusted in my absence
by Mr. Sykes, to whom I have communicated my ideas, if the plan be
approved of by the Select Committee; and the whole may be finally
concluded to our satisfaction, upon the Company's being appointed the
King's Duan, who will be empowered, by the nature of their office, as
well as by the King's consent, to settle every point."
Writing the same day to Mr. Verelst, Lord Clive sufficiently
characterises the Nabob by a single trait. "He received the proposal
of having a sum of money for himself and household at his will with
infinite pleasure; and the only reflection he made, upon leaving me,
was, 'Thank God! I shall now have as many dancing girls as I please.'"
It is not to be supposed that the Select Committee would object to a
plan which threw the greater part of the revenue of Bengal into the
hands of the Company, and the treaty was finally concluded in the
course of the same month. The allowance made to the Nabob was raised to
something more than 53 lacs of rupees.
Lord Clive, proceeding up the river, met the Vizier, as has been
mentioned, at Benares. The fortune of war had been against him; his
armies had been repeatedly defeated, and his capital, Lucknow, taken.
He had given himself up to General Carnac, and was eager for peace.
So early as the 2d of August, Lord Clive had an interview with him,
and intimated his intention of restoring all his dominions, except
Allahabad, worth 10 lacs yearly, and perhaps Corah, valued at 18. "His
expressions of joy and gratitude upon this occasion," say Lord Clive
and General Carnac, in a joint letter to the Select Committee[92],
"were many and warm. Such an instance of generosity in a victorious
enemy, exceeded his most sanguine expectations, and we doubt not
will be the best foundation of that union and amity which we so
earnestly wish to secure. He consents to pay to the Company 50 lacs for
indemnification. These terms we think moderate and equitable, both for
him and the Company."
This matter being arranged, Lord Clive hastened on to Allahabad, to
meet the King: the first visit took place on the 9th of August. The
King's demands were numerous, but Clive was steady to his purpose.
The demand on the Nabob of Bengal for 32 lacs of rupees as arrears,
and of 5-1/2 lacs annually of jaghires, were refused, with several
others. It was finally settled, on the 11th, that the King should
receive annually, as revenue from Bengal, the sum of 26 lacs, with
the countries of Allahabad and Corah, yielding a farther revenue of
28 lacs, from Sujah-u-Dowlah, as a royal demesne for supporting his
dignity. "This last cession," says Lord Clive and General Carnac,
writing to the Select Committee[93], "we very readily consented to, as
Sujah-u-Dowlah made not the least objection, well knowing that, after
our departure, he could easily settle this matter with the King, to the
satisfaction of both parties." Lord Clive had, it seems, wished to
restore Corah to the Vizier, making over Allahabad only to the King.
"We then presented the King with two arzies (petitions), desiring he
would grant to Nujm-u-Dowlah the Nizamut of Bengal, Bahar, and Orissa,
and to the Company, the Dewanny of the same provinces; to both of which
His Majesty has signed his fiat, and the proper instruments for both
are now drawing out."
The King, at the same time, granted firmans confirming to the Company
for ever all the lands round Madras and elsewhere assigned to them
by the Nabob of Arcot; as well as a free gift of the five northern
Circars. This was the first formal grant or confirmation by the King to
the Company, of these territories. The grant of Lord Clive's jaghire,
to the Company, was likewise confirmed.
The King was eager to induce Clive to march to Delhi and replace him
on the throne. But this was steadily refused. Clive's policy was to
interpose a friendly native power between our territories and the
Afghans, and as far as possible the Mahrattas. He saw that the King,
from his weak character and large pretensions was quite unfit for
such a purpose; and that none was so proper, both from character and
power, as Sujah-u-Dowlah. This was one cause why he was anxious to
have strengthened him, by restoring Corah. He wished to induce the
King to reside quietly in the Company's territories; but finding this
impracticable, gave him to understand that the Company could not join
him as a party in any of his ambitious enterprises, beyond the limits
of their own territories.
Such was the conclusion of these important negotiations, by which the
English East India Company became the real sovereigns of Bengal, Bahar,
Orissa, and other extensive territories. In these provinces they now
stood in the place of the Nabobs, and had gained a right to levy and
dispose of the whole revenues under some very moderate burthens. They
were no longer dependent on the regularity of native princes for the
payment of their troops, or support of their establishments. The Nabob
of Bengal was become a puppet in their hands, of little use, but as
a cover to their dealings with European powers. Clive estimates the
annual clear gain to the Company, including their former possessions
of Burdwan, &c., and after paying the King, the Nabob, and all other
expenses, as not short of 122 lacs, or 1,650,000_l._[94]
Clive had received from the King, in 1758, a sunnud appointing him
to the high rank of a munsubdar of six thousand foot, and of five
thousand horse, with the title of Zubdit-al-mulk, Nazir-ed-Dowla,
Sabat Jung, Behader.[95] The title of Sabat Jung he had originally,
as already mentioned, received from the Nabob of Arcot, for his
gallant exploits in that prince's service, and by that title he always
continued to be known in Bengal. He now received some augmentation of
sounding titles, but what they were does not appear.
While Clive was engaged in these public duties he did not intermit in
the regularity of his correspondence with his friends in England. Some
extracts from his letters will show the light in which he considered
his own situation and transactions.
[96][The following letter[97] to Mr. Salvadore, whom he employed
as a man of business, merits to be preserved as a proof of Clive's
disinterested conduct during this his last period of service in India:--
"I return you many thanks for your obliging letter, and for the very
favourable opinion you are pleased to entertain of my abilities,
as well as disposition to do my duty to the Company. It must be my
own fault if I do not answer the expectations of all the real and
disinterested proprietors; as for the occasional ones, and those who
act from resentment and selfish principles, I hold them in too much
contempt to cast away one thought about them.