CHAPTER IV.

THE KING, THE WHIGS, AND CHATHAM.

Both for public and personal reasons George was anxious to get rid of

his ministers. Unlike them, he appears as early as the spring of 1765 to

have considered the discontent of his American subjects a serious

matter, and he blamed them for it.[68] In other respects, too, he was

dissatisfied with their public conduct, and he complained bitterly of

their behaviour towards himself. In spite of some outward agreement in

action, he and Grenville, who without the name retained nearly all the

authority of prime minister, pursued fundamentally different systems.

Grenville, though not less ready than the king to meet opposition with

violent measures, was imbued with whig theories. While George sought to

rule by securing the support of parliament, Grenville tried to use that

support to enable him to rule the king. He was a pedant, and lectured

the king on his duty like a schoolmaster. Bute stood in his way as the

king's ally and secret counsellor. His victory over him was partial and

short-lived. While Bute was in the country the king corresponded with

him, and he returned to London in the spring of 1764. His return made

the ministers uneasy, and Grenville's lectures became intolerable. "When

he has wearied me for two hours," George complained, "he looks at his

watch to see if he may not tire me for an hour more." Bad as their

public conduct was, he and his colleagues owed their fall chiefly to

their unbecoming behaviour to their sovereign.

[Sidenote: _THE REGENCY BILL._]

Early in 1765 the king had a severe illness and showed signs of the

insanity from which he suffered later. He recovered in March, and as he

believed that his life was not likely to be prolonged, he was anxious to

provide for a possible regency. Constitutional usage pointed to the

queen as the proper person to be regent during the infancy of her son.

George, however, wished to have the power to nominate a regent by an

instrument revocable at pleasure. Grenville dissuaded him from this

idea, and, with his ministers' consent, he announced from the throne

that a bill would be laid before parliament restricting the regency to

the queen and other members of the royal family usually residing in

England. When the bill was proposed in the lords the question was raised

whether the king's mother was a member of the royal family, or only

those in the order of succession. If the Princess of Wales became

regent, Bute would probably regain power. In order to prevent this dire

possibility, Bedford sacrificed decency and common sense by successfully

opposing a motion that the princess's name should expressly be included

in the bill. While the matter was pending, on May 3, Halifax and

Sandwich went to the king and persuaded him that the bill would not pass

the commons unless the princess was excluded. Anxious to save his mother

from insult, George authorised Halifax to move an amendment that only

the queen and those descended from George II. should be capable of the

regency. Halifax, in moving the amendment, announced that he did so with

the king's sanction, and it was adopted by the lords.

George soon learnt that he had been deceived, that people were

scandalised at his appearing to cast a slur upon his mother, and that

the opposition in the commons would move to include her name. In great

agitation he appealed to Grenville to help him by announcing a message

from the crown to the commons recommending the inclusion of the

princess. Grenville, though he had had no part in the trick of the two

secretaries, refused his request on the ground that it would stultify

the ministers, nor would he give way though the king actually wept with

mortification. An amendment to insert the princess's name was proposed

in the commons, was carried by 167 votes to 37, and was accepted by the

lords. George determined to shake off Grenville's yoke. He called on his

uncle, Cumberland, to find him new ministers, and the duke, though he

had been treated unkindly by his nephew, loyally came to his help.

Evidently by Bute's advice, the king authorised him to treat with Pitt

and Temple. Pitt was living in retirement, and in October, 1764, told

Newcastle that he intended to remain unconnected. He was willing to

accept office in a comprehensive administration on the understanding

that the officers who had been dismissed for their votes in parliament

should be restored, that the new ministers should be at liberty to

propose a resolution declaring general warrants illegal, and that a

continental alliance should be formed against the Bourbon powers.

Temple, however, refused office, and Pitt would not come in without him.

As Temple was on the eve of a reconciliation with his brother Grenville,

with whom he had quarrelled over the Wilkes affair, it was thought that

his refusal was due to an ambitious idea of a family administration of

himself, his brothers, and Pitt. Be this as it may, he probably

suspected that Bute would have an influence in the proposed

administration. Pitt allowed himself to be swayed by gratitude for help

which Temple had given him in the days of his poverty. During this

negotiation a riot broke out in London. The silk manufacture was

depressed owing to foreign competition, and thousands were consequently

almost starving. A bill to check the importation of silk by the

imposition of fresh duties was laid before the lords; it was opposed by

Bedford, who was averse from restraints on commerce, and it was

rejected. On this a large number of Spitalfields weavers went to

Richmond, on May 14, to seek help from the king in person. They met him

on Wimbledon common. He received them kindly, but could not, of course,

give them the help they wanted. The next day many thousands gathered in

Spitalfields and Moorfields at beat of drum, marched to St. James's and

Westminster, and stopped members on their way to parliament. Bedford was

assaulted and wounded, and on the 17th a determined attack was made upon

his house on the north side of Bloomsbury Square. It was garrisoned by

soldiers and others, but the attack was only defeated by the arrival of

fresh troops. When the disturbances were at last quelled, a large

collection was made for the relief of the immediate distress, which was

further mitigated by a sudden fall in the price of bread.[69] The affair

increased the king's discontent with his ministers and embittered the

feelings of anger between the Bute and Bedford factions.[70]

[Sidenote: _THE FIRST ROCKINGHAM MINISTRY._]

On Pitt's refusal to take office, Cumberland tried Lord Lyttelton and

Charles Townshend, but they declined the king's offer because they

believed that no strong administration was possible without Pitt. George

was forced to beg his ministers to continue. They took full advantage of

his humiliation. Pitt had asked for assurances on matters of public

policy; they made stipulations which chiefly concerned persons. The king

must promise never again to consult Bute, and must deprive his brother

Mackenzie of the office of privy seal of Scotland. As regards Bute,

George at once gave the required promise, and though he was afterwards

constantly suspected of consulting with him, there is good reason to

believe that he loyally kept his word, and that Bute never again offered

him any advice.[71] He had promised Mackenzie his office for life, and

declared "that he should disgrace himself" if he took it from him.

Nevertheless Grenville forced him to give way. His relations with his

ministers were naturally strained; they complained that he did not

support them, and on one occasion Bedford remonstrated with him in

insolent terms. Again George requested Cumberland to treat with Pitt,

who had two interviews with the king and was anxious to accept his

offer, but Temple peremptorily refused to take any office, even the

treasury, and Pitt with deep regret again followed his lead. The king

found no way of escape, save by authorising Cumberland to turn to the

great whig families. Grenville was dismissed, and an administration

formed under the leadership of the Marquis of Rockingham took office on

July 16. It must have been a bitter humiliation to George after all that

had passed. Yet, though for the moment he was defeated, he did not mean

to give over the rule of his kingdom to the whigs, and for the present

anything was better than Grenville's tyranny. George respected his

character, but said he, "I would rather see the devil in my closet than

Mr. Grenville".

The weakness of the Rockingham administration was patent from the first.

Charles Townshend, who succeeded Holland as paymaster, called it "a

lutestring ministry, fit only for summer wear"; Pitt was expected to

supply one of more durable material before the winter. The old phalanx

of the whigs, tried hands at political business, was broken up by death

and desertion; their successors lacked experience and authority.

Rockingham, a man of thirty-five, a prominent figure on the turf, of

vast wealth and irreproachable character, was a wretched speaker, and

had neither genius, knowledge, nor industry. The Duke of Grafton, the

secretary of state for the northern department, was even younger, and,

like Rockingham, a great racing man. His public spirit made him a

politician, but he cared so much more for pleasure than for politics

that he was apt to be content so long as any immediate difficulty was

tided over, and he suffered in public estimation from the scandal caused

by his dissolute life. The southern department was taken by Conway.

Dowdeswell, the chancellor of the exchequer, was a sound financier, but

a dull man. Newcastle, who was privy seal and again had charge of church

patronage, was no longer so powerful as in earlier days. Nor were the

ministers unanimous in feeling. Grafton was far more at one with Pitt

than with the Rockingham party; and the chancellor (Henley) Lord

Northington, Egmont the first lord of the admiralty, and Barrington the

secretary-at-war were included to please the king. Another cause of

weakness was George's notorious dislike of his new ministers, which

encouraged his "friends," the court party, to intrigue against them.

[Sidenote: _PITT ON COLONIAL TAXATION._]

Most serious of all was the attitude of Pitt. He was pressed to join the

government; its policy was in many respects such as he could approve,

and in other matters he could almost have made his own terms.

Nevertheless he refused to take office and openly declared his lack of

confidence in the ministers, though they tried to satisfy him in various

ways, such as by obtaining a peerage for Pratt, who was created Baron

Camden. Magnificent as he had shown himself as a dictator, he was

unfitted by temperament to work with others, and his natural defects

were aggravated by his constant attacks of gout. At the same time his

present attitude was to a large extent also a matter of principle. He

would willingly have taken office if he could have simply been the

king's minister, unconnected, without belonging to any party. The

Rockinghams, as they were called, were a party connexion, and under

Rockingham's leadership would remain so, and their character was

emphasised by the inclusion of Newcastle, the chief representative of a

system which Pitt hated, government based on the influence of the whig

houses and not on the good-will of the crown and the people. Pitt

plainly declared that he would not sit at council with Newcastle. Nor

would he take office under Rockingham. Without him the ministry had

neither an original policy nor a chance of permanence. Called into

existence by Cumberland, it leant on him for support; he was present at

all cabinet meetings, and they were sometimes held at his house. His

sudden death on October 31 was a severe shock to the stability of the

government. Pitt would not advise the ministers. Grafton urged that he

should again be invited to take office, but the king would not enter on

a fresh negotiation with him, for he had refused his former overtures

and held very different views from his regarding the American stamp act.

For months the ministers paid no heed to American discontent, save that

Conway wrote rather feebly to some of the colonial governors with

reference to the disorders. Parliament was not summoned until December

17, and though the king's speech directed attention to the late

occurrences in the colonies, the ministers had not decided on a policy.

They ascertained Pitt's opinion, and so gained a lead. When parliament

assembled in January, 1766, after the recess, Pitt spoke warmly against

any attempt to enforce the stamp act. He avowed his distrust of the

government in a characteristic fashion: "Pardon me, gentlemen," said he,

bowing towards the ministers, "confidence is a plant of slow growth in

an aged bosom; youth is the season of credulity". He thought that he saw

"traces of an overruling influence," a dark saying which probably

referred to Newcastle.[72] While he asserted the sovereignty of Great

Britain over the colonies in legislation, he maintained that parliament

had no right to tax them; taxation, according to him, was "no part of

the governing or legislative power". He regarded the tax as an

infringement of constitutional liberty, and rejoiced that the Americans

had resisted it. Such a matter, he urged, was not to be decided by

text-books; he had not come down to the house "armed with the

statute-book, doubled down with dog's-ears, to defend the cause of

liberty". America might be crushed, but if she fell, she would fall like

Samson, embracing and pulling down the pillars of the state, the

constitution, along with her. Let them bind her commerce and restrict

her manufactures, but abstain from demanding money without the consent

of her people. His words had a great effect; they put enforcement out of

the question.

A few days later Edmund Burke made his first speech in parliament,

recommending the house to receive a petition from the colonies, and was

at once recognised as a new power. He was an Irishman, and was already

known as a writer. He became Rockingham's secretary in 1765, and a seat

was provided for him. Unsurpassed in his mastery of English prose, he

exhibits to the full the splendour of the English language in his

speeches and pamphlets. Nor is his thought unworthy of the gorgeous

attire with which it is invested. His power and constant habit of

discerning and expounding the principles which were involved in

questions of the moment, give him a supreme place as a teacher of

political wisdom. In character he was pure, generous, and

tender-hearted. His fervid imagination extended the area of his

sympathies, and sometimes prejudiced his opinions. As a speaker he was

eloquent, and now and again carried his audience completely with him,

but he never caught the tone of the house of commons; his longer

speeches were too much of the nature of exhaustive treatises to be

acceptable to its members; he had little tact, an impatient temper, and

often spoke with execrable taste. The chief article in his political

creed was his belief in the excellence of the constitution. He was an

ardent reformer of abuses, but with the constitution itself he would

have no meddling. Unlike Pitt, he saw that the only effectual check to

corrupt influence was to be found in government by a party united for

the promotion of national interests upon some common principle. Such a

party might, he believed, be based on the whig families, if only they

would keep themselves free from court intrigue and selfish jealousies.

He was a whig of a different type from Newcastle and Bedford; he built

his hopes on the Rockinghams and inspired their policy. That he never

sat in a cabinet was chiefly because in those days such a distinction

was confined to men of higher birth.

[Sidenote: _REPEAL OF THE STAMP ACT._]

Decided action with regard to America was a pressing necessity. The

measures of retaliation adopted by the colonists were depressing trade

at home. Petitions against the stamp act were presented from the

merchants of London, Liverpool, Glasgow, and other towns, setting forth

the loss inflicted on manufacturers and their work-people by the

stoppage of the American trade, and the difficulties arising from the

non-payment of debts due from America, which amounted to L4,000,000. The

ministers resolved on the repeal of the act, and on a bill declaring the

right of parliament to legislate for the colonies on all matters

whatsoever. Some of the king's household having voted against the

government, Rockingham went to the king to remonstrate with him. George

told him that he was for repeal, and that Rockingham might say so. Two

days later the ministers heard that Lord Strange, one of the court

party, was saying that the king was against repeal, and wished it to be

known. This made a great stir, and the "ministerial lives were thought

not worth three days' purchase". Rockingham went to the king for an

explanation. George acknowledged that he had told him that he was for

repeal, but said that they had been speaking only of the choice between

the repeal and the enforcement of the act, that of the two he was for

repeal, but that he desired that the act should be modified and not

repealed. The ministers had therefore "to carry on a great public

measure against the king's declared sentiments, and with a great number

of his servants acting against them".[73] Nevertheless the bill for the

repeal of the act was carried in the commons on March 11 by 275 votes to

167, and a week later in the lords by 105 to 71. It was a signal

victory; but, apart from the interests of commerce, it was due rather to

Pitt than to the government. The declaratory bill also passed; its chief

opponents being Pitt and, in the upper house, Lord Camden, who on this

question, as well as on that of repeal, talked much trash about a

fundamental law of nature and the limits of the power of parliament,

more in place in the mouth of an American demagogue than of an English

judge. An address was also carried recommending that the colonial

governors should be instructed to require compensation to be made to

those who had suffered during the late disturbances.

Both in England and America the repeal of the stamp act was hailed with

rejoicing. American discontent was hushed, and the public manifestations

of gladness were accompanied by expressions of loyalty and affection for

the mother-country. The colonists, however, knew that they had won a

victory over parliament, and they did not forget it. Their substantial

grievance, the commercial regulations, still remained; they soon saw

that they must go further, and that Pitt's distinction between a direct

money-tax and duties on merchandise, though it had served their

immediate purpose, would no longer be useful. The declaratory act was

regarded as a menace, and kept alive their feelings of suspicion and

irritation. Their temper was shown by the delay of many of the colonies

to vote the required compensation. In Massachusetts, where the vote was

passed in December, it was insolently accompanied by a vote of indemnity

to all concerned in the riots. The repeal of the stamp act needs no

defence; a mistake had been made which was leading to serious

consequences, and in such a case it is a statesmanlike policy to retrace

the false step. The declaratory act was passed to save the dignity of

parliament. In spite of Burke's admiration for this act, it may be

suggested that the assertion of a right by a party which at the same

time declines to enforce it, is neither a dignified nor a wise

proceeding. Its only, and sufficient defence is that without it the

repeal of the tax would have been impossible. The Americans' denial of

the right of parliament, accompanied as it was by violence of word and

action, roused much indignation in England and involved every supporter

of the repeal in the imputation of betraying its dignity. If repeal was

to be carried it was necessary to satisfy men's minds by a declaration

of the right of parliament to tax the colonies.

[Sidenote: _THE CHATHAM MINISTRY._]

Some good work was done in other directions; the cider-tax was repealed,

a commercial treaty was made with Russia, and the house of commons came

into agreement with the judges on the question of general warrants by

resolving that general warrants being illegal, except in the cases

provided for by act of parliament, the arrest of any of its members on

such a warrant would be a breach of privilege. The administration,

however, was enfeebled by the unconcealed dislike of the king, the

hostility of Pitt, and the general belief that it was keeping him out of

office. Pitt was extremely anxious for office, but would not accept it

unless a "transposition of offices" was made; unless, in fact,

Rockingham was got rid of. To this Rockingham would not consent; he

wanted Pitt to take office as his ally, not as his successor. There were

differences in the cabinet on the matter. The king's section wished to

gain Pitt for their master; Rockingham was upheld by his friends;

Grafton wanted Pitt as prime minister, and Conway, though less decided,

agreed with him. Pitt became querulous and unreasonable, and in April

violently attacked the ministers, specially excepting Grafton and

Conway.[74] All attempts at negotiation having failed, Grafton made his

choice for Pitt and resigned office. It was not easy to fill his place,

for the ministry was regarded as moribund, and finally the king was

forced to give the seals to Rockingham's friend, the young Duke of

Richmond. The chancellor, Northington, a strong supporter of the king,

saw that the end was not far off, and apparently determined to make sure

of a place in the next administration by sacrificing his colleagues. He

quarrelled with them in the cabinet on a question relating to the

administration of law in Canada, and early in July told the king that he

must resign office, and that the ministry was too weak to go on. George

eagerly seized the opportunity for getting rid of it and replacing it by

a more comprehensive ministry with Pitt at its head. The difficulties

which had stood in Pitt's way were removed; the American question seemed

to be settled; he had made it known that he would not again be guided by

Temple, and he was delighted to be the king's minister, avowing his

determination "to defend the closet against every contending

party"--against, that is, the great whig houses and their connexions.

The satisfaction consequent on Pitt's accession to power faded at the

news that he had accepted a peerage as Earl of Chatham. It was unjustly

considered as a bribe, and lost him much of his popularity. A more

serious consequence was that it left the leadership of the house of

commons to weaker hands. Though prime minister, he took for himself the

unimportant office of privy seal. His course was probably determined by

a consciousness of failing health. Conway became northern secretary of

state, with the leadership of the commons, and Shelburne secretary for

the southern department. In spite of Temple's opposition to the repeal

of the stamp act, Pitt offered him the treasury, but that vain man

would not enter the cabinet except as Pitt's equal, and a quarrel ensued

between them. The treasury was then accepted by Grafton; and,

unfortunately, by his advice, Charles Townshend was made chancellor of

the exchequer. Camden was appointed chancellor, Northington president of

the council, and they, with Granby as commander-in-chief, and Sir

Charles Saunders, who succeeded Egmont at the admiralty, completed the

cabinet. Besides Conway and Saunders, some other Rockinghams had

inferior offices, but Rockingham himself and most of his party

considered that Chatham had treated them badly, and repelled his

advances. The ministry was unfortunate in being represented in the house

of commons by the irresolute Conway and the unprincipled Townshend.

Worse still, Chatham, whose arrogance increased with his disease,

alienated adherents, and treated his colleagues with reserve and

disdain.

Chatham at once pursued the foreign policy which he had consistently

recommended by seeking a continental alliance to counterbalance the

alliance of the Bourbon powers. The family compact did not lose its

importance at the peace of Paris. Choiseul in France and Grimaldi, who

succeeded Wall in Spain, worked together heartily in promoting a Bourbon

policy, and looked forward to the reconquest of the lost possessions of

France and Spain. The allies were strengthened by the good-will of

Austria. Schemes of aggrandisement were formed, which included the

acquisition of Corsica by France and of Portugal by Spain. There were

unsettled causes of dispute between them and England touching the

fortification of Dunkirk and the Manila ransom, and Spain was also

aggrieved by a British settlement in the Falkland islands. Against

France the natural ally of England was Russia, for she had a strong

interest in opposing French influence in Denmark and Sweden; while on

the side of England a Russian alliance would, in the event of war,

secure her Baltic trade and enable her fleet to act elsewhere, and would

be a defence for Hanover. An alliance with Russia had already been

discussed, but Catherine II. had far less interest in the matter than

England, and insisted that any alliance should include her Turkish war,

to which England would not consent. Catherine was in alliance with

Frederick of Prussia, and Chatham, hoping that the adhesion of England

would be welcomed, designed a defensive alliance between Great Britain,

Prussia, and Russia, which might take in Denmark, Sweden, the

States-General, and any other power interested in withstanding Bourbon

aggrandisement. To Catherine her alliance with Prussia was much more

important than anything which she could obtain from England, and

Chatham's design therefore depended on Frederick's good-will. He

declined the proposal of Great Britain: he had not forgiven the

ill-treatment which he believed he had received from Bute; he admired

Chatham, but had no assurance that he would remain in power; and he

considered any possible danger to himself from the Bourbon alliance to

be too remote to make it advisable for him to join in a concert to

prevent it. He was already meditating the partition of Poland, and the

proposed combination would have been contrary to his policy. Chatham's

great design was consequently defeated.

[Sidenote: _CHATHAM'S DIFFICULTIES._]

His arbitrary temper soon brought him into difficulties. He desired to

reward a new adherent with the office of treasurer of the household,

then held by Lord Edgcumbe, and on Edgcumbe's refusal to vacate the

office, he deprived him of it. Edgcumbe was connected with the

Rockingham party, and, with the exception of Conway, all the more

important members of it who had joined the new ministry, the Duke of

Portland, Saunders, and others, resigned office. Conway was almost

persuaded to follow their example, for Chatham treated him with haughty

coldness, but he yielded to the urgent advice of his friend Horace

Walpole, and remained in the ministry, uneasy and vacillating. Any

alliance with the Rockinghams being out of the question, Chatham was

driven to make overtures to the Bedford party, which failed because they

asked more than he would grant. Finally, Saunders's place at the

admiralty was supplied by the famous admiral, Sir Edward Hawke, and the

other vacancies were filled by tories and courtiers.

The harvest of 1765 was bad, and that of the present year promised to be

no better. The price of wheat rose rapidly, and in July reached 44s. a

quarter. The poor were distressed, worse times seemed to be ahead, and

the dealers were believed to be keeping back supplies in the expectation

of higher prices. Riots of a more or less serious character broke out in

some fifty places; bakers' shops were pillaged, mills and barns were

fired, and dealers and tradesmen were forced to sell provisions at

prices fixed by the people. It was not until September 10, when wheat

had again risen, that the ministers, in accordance with the economic

ideas of the time, issued a proclamation against forestalling and

engrossing. It had no effect; the price reached 49s., and on the 26th

the council laid an embargo on exportation. By law the ministers had no

right to take such a step until wheat was at 53s. 4d. As, however,

prices were rising, all parties agreed that the embargo was in itself a

justifiable measure. It was, however, objected that the ministers should

have summoned parliament to meet at an earlier date, and have acted with

its authority. When parliament met on November 11, the opposition

insisted that the ministers needed a bill of indemnity for having set

aside the law by a proclamation of council. Chatham defended their

action on the constitutional ground of necessity. His colleagues and

supporters were not all equally wise. Northington declared that the

proclamation was legally, as well as morally, justifiable; and the

chancellor, Camden, the assertor of popular liberties, that "it was at

most a forty days' tyranny". His foolish speech was severely handled by

Mansfield. In the commons Alderman Beckford, a hot-headed admirer of

Chatham, said that "if the public was in danger the king had a

dispensing power," and was forced by Grenville to retract his words. The

debates on this matter injured the reputation of the ministry though

they did not endanger its stability.

[Sidenote: _REVOLT IN BENGAL._]

When parliament rose in December Chatham went to Bath for the sake of

his health. In February, 1767, he had a severe attack of gout, and in

March the disease began to affect his mental powers. For the next two

years he was unable to take any part in politics. His effacement left

the ministry without a head. Before his retirement a difference arose in

the cabinet on the affairs of the East India Company. From a simple

trading company it had been raised by the victories of Clive and his

generals to the position of a territorial power. Its affairs were

managed by a court of directors elected annually, and consequently under

the control of the court of proprietors in which every holder of L500

stock had a vote. It proved itself unequal to its new position. Clive

returned to England in 1760, the possessor of a princely fortune, and in

1762 was created Baron Clive of Plassey in the Irish peerage. He was

opposed in the court of directors by a party headed by Sullivan. In

India he was succeeded by Vansittart, and there troubles soon arose,

chiefly from the greed of the company's servants. Mir Jafar, the Nawab

of Bengal, a self-indulgent and unpopular ruler, was deposed by the

council in 1761, and his son-in-law, Mir Kasim, was made nawab in his

place. It was a profitable business, for Mir Kasim spent L200,000 in

presents to the council and ceded to the company the revenues of three

districts, amounting to some L500,000 a year. Yet the exchange of nawabs

proved an unwise step, for Mir Kasim was able and active. He moved his

court from Murshidabad to Monghyr, at a greater distance from Calcutta,

organised an army, and showed that he was ready to resist oppression.

The revenues of the Indian princes were largely derived from tolls on

the transit of merchandise. The company, which had the right of free

exportation and importation, passed its goods free inland under the

certificate of the head of a factory. The system was abused. The company

paid its servants insufficient salaries, and they made up for it by

engaging in private inland trade, using the company's passes to cover

their goods. Armed with its power, they forced the natives to deal with

their native agents, to buy dear and sell cheap; they monopolised the

trade in the necessaries of life, and grew rich upon the miseries of the

helpless people. Private trade and extorted presents enabled many a man

who as a mere youth had obtained a writer's place to return to England

after a few years with a handsome income. Mir Kasim saw his people

starving, his officers ill-treated, and his treasury robbed, and

prepared for revolt. Conscious of the impending danger, Vansittart made

an agreement with him as to tolls. The council at Calcutta indignantly

repudiated the agreement, and Mir Kasim was furious. Open hostilities

began in June, 1763. One of the council, who was sent on an embassy to

Kasim, was killed by his troops. Patna was seized by the English; it was

retaken, and some 200 English were made prisoners. A little army under

Major Adams, routed the nawab's forces, and on October 11 Monghyr was

taken. Mir Kasim caused all his prisoners, save five, to be massacred,

and fled for refuge to Shuja-ud-Daula the nawab wazir of Oudh. Patna was

taken by storm and Bengal was completely subdued.

Mir Jafar was again made nawab, and paid large sums both to the company

and its servants as compensation for their losses. The war, however, was

not over, for the nawab wazir espoused the cause of Mir Kasim, and, in

conjunction with the Mughal emperor, Shah Alam, threatened Bengal. Major

Hector Munro took command of the British army, and found it in a

mutinous condition; desertions to the enemy were frequent. He captured a

large body of deserters, caused twenty-four of the ringleaders to be

blown from guns, and by his dauntless conduct restored discipline among

the troops. With about 7,000 men, of whom only some 1,000 were

Europeans, he inflicted a crushing defeat on the allied forces, 50,000

strong, at Baxar on October 23, 1764. The enemy lost 6,000 men and 167

guns. Oudh lay at the disposal of the English, and Shah Alam sought

refuge with the conquerors. Early in 1765 Mir Jafar died, and the

council at Calcutta, without consulting the emperor, appointed his son

to succeed him, receiving in presents from him L139,357, besides money

unaccounted for. These revolutions and wars cost the company much money,

and, while its servants were enriching themselves, it incurred heavy

debts. Clive was called upon to put an end to the maladministration of

Bengal. He refused to return to India while Sullivan was chairman of the

court of directors. After a sharp contest, in which large sums were

spent, the proprietors put his party in power. He was invested with full

authority as commander-in-chief and governor of Bengal to act in

conjunction with a select committee.

He landed in India in May, 1765. During his administration of about

eighteen months he secured for the company the virtual sovereignty over

its conquests without dispossessing the nominal rulers, and he took

measures for the reformation of the company's service. Averse from a

forward policy of conquest, he restored Oudh to the nawab wazir on

payment of L500,000. Allahabad and Kora were assigned to the emperor,

together with a tribute from Bengal, and in return Shah Alam granted to

the company the right of levying and administering the revenues of

Bengal, Behar, and Orissa, together with jurisdiction in the Northern

Circars. The nawab of Bengal received an annual pension of L600,000, and

surrendered all his power to the company, except the right of criminal

jurisdiction. Clive reorganised the army, and stopped the double

_batta_, or allowance, granted by Mir Jafar after the battle of Plassey.

He forbade illicit trade and the receipt of presents, and secured the

company's servants increased salaries. These reforms were effected in

the face of violent opposition, both in civil and military quarters. Two

hundred officers conspired to resign their commissions on the same day.

Clive faced the mutiny successfully; he cashiered the leaders and

accepted the submission of the younger men. Ill-health obliged him to

return to England in January, 1767.

[Sidenote: _AFFAIRS OF THE EAST INDIA COMPANY._]

The enormous private fortunes made in India led people to believe that

the company was far richer than it really was. During the late wars the

dividend was 6 per cent. In 1766 the proprietors urged an increase. To

this the directors objected that the debts of the company were heavy,

and that a premature increase would raise the price of stock to a point

at which it could not be maintained, and might end in a disaster like

that of the South Sea Company. The ministers sent a message of warning,

announcing that the affairs of the company would probably be considered

in parliament. They concerned the public, for the company enjoyed

protection and privileges granted by the nation. Nevertheless the

proprietors carried their point, and a dividend of 10 per cent. was

declared. Chatham held that the time had come for parliament to inquire

by what right the company administered its territorial revenues. He

considered that it had no right to its new position of a virtually

sovereign power, that the sovereignty of the crown should be asserted,

and that in return for the privileges which it enjoyed it should

contribute a portion of its revenues to the national treasury. The

company should apply to parliament to make good its defective title, and

parliament should then settle what portion of its revenues should be

assigned to it by way of favour. His ideas were based on an imperial

policy. As early as 1759 he held that the territorial acquisitions of

the company should be claimed for the nation. With him it was a matter

not merely of revenue but of government, and though his ideas are

indistinctly indicated, and were perhaps vaguely formed, it is probable

that he had in his mind some idea of making the government of India an

imperial matter. Yet, sharing as he did the general belief as to the

wealth of the company, he certainly attached much importance to the

possibility of obtaining from it an increase of the public revenue.

A special reason may be discerned for his desire to obtain such an

increase at the end of 1766. The government wanted money; there was a

heavy debt on the civil list, and the navy needed a large grant. An

increase of taxation was inadvisable, for corn was dear. Various schemes

for the increase of revenue were in the air. Many members of parliament,

the court party, the country interest, and the Grenville and Bedford

connexions were regretting the repeal of the stamp act. "We must look to

the East and not to the West," wrote Beckford to Chatham,[75] and he

spoke the mind of his leader. The cabinet was divided. Grafton and

Shelburne agreed with Chatham that the question of the company's rights

should be decided by parliament. Townshend declared that it would be

"absurd" to force the company to share its power with the crown, and

both he and Conway desired that the question of right should be waived

and that its relations with the government should be settled by amicable

arrangement. In May, 1767, the proprietors insisted on a dividend at the

rate of 12-1/2 per cent. A motion was carried to bring the affairs of

the company before parliament. Townshend, as Chatham said, "marred the

business"; he managed to open the door for negotiation, and to make it a

mere matter of money. In June, 1767, a bill was passed, based on an

agreement with the company, which in return for the confirmation of its

territorial revenues, bound itself to pay the government L400,000 a year

for two years; and parliament prohibited a higher dividend than 10 per

cent. The bill was violently opposed, specially by the Rockingham party,

on the ground that it was an unjustifiable interference with the rights

of property. In 1769 the agreement with the company was renewed, and

permission was given for a dividend of 12-1/2 per cent, on certain

conditions. The company was then in debt over L6,000,000.

[Sidenote: _HAIDAR ALI._]

A new and formidable enemy had arisen in Southern India. In 1767 Haidar

(Hyder) Ali, the ruler of Mysore, made war upon the English in

conjunction with the Nizam of Haidarabad. The allies were defeated, and

the nizam made peace. Haidar, however, continued the war. He had a large

force of cavalry which he brought to great perfection, and, as the

English were deficient in that arm, he was able to do much mischief in

the Karnatic. In April, 1769, having previously drawn the English army

away from Madras by skilful manoeuvres, he suddenly appeared in the

immediate neighbourhood of the town. The English were forced to make a

treaty with him on his own terms. The news sent the company's stock down

60 per cent. The same year the crops failed in Bengal, and in 1770 there

was a grievous famine which is said to have carried off a third of the

inhabitants. Yet in spite of the decreasing revenue and the heavy debts

of the company, the proprietors were receiving dividends of 12 and

12-1/2 per cent.

FOOTNOTES:

[68] _Newcastle's Narrative_, p. 11.

[69] _Annual Register_, viii. (1765), 92.

[70] _Bedford Correspondence_, iii., 281; Walpole, _Letters_, iv.,

365-66.

[71] _Annual Register_, xxi. (1778), 256.

[72] Lord Charlemont to Flood, Jan. 8, 1766, _Letters to Flood_, p. 5.

[73] Conway to Lord Hertford, Feb. 12, 1766, in a MS. collection of

Conway's letters, to which Messrs. Sotheran kindly gave me access.

[74] Conway to Hertford, April 29, 1766, MS. Sotheran, _u.s._

[75] Beckford to Chatham, Oct. 15, 1766, MS. Pitt Papers, 19; _Grenville

Papers_, iii., 336.

The history of England, from the accession of George III. to the close of Pitt's first administration, 1760-1801 · 第 4 / 21 章