of rejoicing at the loss of a joint-stock in England, as they BOOK I. ought to have done, if by joint-stock alone the trade of CHAP. III. their rivals could be successfully carried on; they were filled with dismay at the prospect of freedom, as likely to produce a trade with which competition on their part would be vain.1 Meanwhile the Company, as well as the Merchant Adventurers, were employed in the equipment of a fleet. The petition of the Company to the Protector for leave to export bullion, specified the sum of 15,000l., and the fleet consisted of three ships. They continued to press the government for a decision in favour of their exclusive privileges; and in a petition which they presented in October, 1656, affirmed, that the great number of ships sent by individuals under licenses, had raised the price of India goods from 40 to 50 per cent., and reduced that of English commodities in the same proportion. The Council resolved at last to come to a decision. After some inquiry, they gave it as their advice to the Protector to continue the exclusive trade and the joint-stock; and a committee of the Council was, in consequence, appointed to consider the terms of a charter.2 While the want of funds almost annihilated the operations of the Company's agents in every part of India; and while they complained that the competition of the ships of the Merchant Adventurers rendered it, as usual, impracticable for them to trade with a profit in the markets of India, the Dutch pursued their advantages against the Portuguese. They had acquired possession of the island of Ceylon, and in the year 1656-57, blockaded the port of Goa, after which they meditated an attack upon the small island of Diu, which commanded the entrance into the harbour of Swally. From the success of these enterprises they expected a complete command of the navigation on that side of India, and the power of imposing on the English trade duties under which it would be unable to stand.3 1 Thurloe's State Papers, iii. 80. Anderson says, "The merchants of Amsterdam, having heard that the Lord Protector would dissolve the East India Company at London, and declare the navigation and commerce to the Indies to be free and open, were greatly alarmed; considering such a measure as ruinous to their own East India Company." Anderson's History of Commerce, in Macpherson's Annals, ii. 459. See Bruce, i. 518. 2 Bruce, i. 514-516. 3 Ibid, 522-529. 1657. BOOK I. CHAP. IV. 1658. CHAPTER IV. From the Coalition between the Company and the Merchant AFTER the decision of the Council of State in favour of the joint-stock scheme of trading to India, the Company and the Merchant Adventurers effected a coalition. On the strength of this union a new subscription, in 1657-58, was opened, and filled up to the amount of 786,000.1 Whether the expected charter had been actually received is not ascertained.2 The first operation of the new body of subscribers was the very necessary one of forming an adjustment with the owners of the preceding funds. A negociation was opened for obtaining the transfer of the factories, establishments, and privileges in India. After the lofty terms in which the Directors had always spoken of these privileges and possessions, when placing them in the list of reasons for opposing an open trade, we are apt to be surprised at the smallness of the sum which, after all, and “though situated in the dominions of fourteen different sovereigns," they were found to be worth. They were made over in full right for 20,000l., to be paid in two instalments. The ships, merchandise in store, and other trading commodities of the preceding adventurers, were taken by the new subscribers at a price; and it was agreed that the sharers in the former trade, who on that account had property in the Indies, should not traffic on a separate fund, but, after a specified term, should carry the amount of such property to the account of the new stock.3 There was, in this manner, only one stock now in the hands of the Directors, and 1 Bruce, i. 529. 2 Bruce, upon whose authority this transaction is described, states the matter rather differently; he says: "That the charter was granted in this season will appear, from the reference made to it in the petition of the East-India Company, though no copy of it can be discovered among the records of the state or of the Company."-loc. cit. In a letter from Fort St. George to the factory of Surat, dated 12th July, 1658, it is stated that the Blackmoore, which had arrived from England on the 12th of June, had "posted away with all haste, after His Highness the Lord Protector had signed the Company's Charter."-W. 3 Bruce, i. 529, 530. they had one distinct interest to pursue; a prodigious improvement on the preceding confusion and embarrassment, when several stocks were managed, and as many contending interests pursued at once. Some new regulations were adopted for the conduct of affairs. The whole of the factories and presidencies were rendered subordinate to the President and Council at Surat. The presidencies, however, at Fort St. George and at Bantam were continued; the factories and agencies on the Coromandel coast and in Bengal being made dependent on the former, and those in the southern islands on the latter.1 As heavy complaints had been made of trade carried on, for their own account, by the agents and servants of the Company, who not only acted as the rivals, but neglected and betrayed the interests, of their masters, it was prohibited, and, in compensation, additional salaries allowed.2 After these premilinary proceedings, the first fleet was despatched. It consisted of five ships; one for Madras carrying 15,5007. in bullion; one for Bengal; and three for Surat, Persia, and Bantam. The following year, that is the season 1658-59, one ship was consigned to Surat, one to Fort St. George, and two to Bantam. The latter were directed to touch at Fort St. George to obtain coast clothes for the islands, and to return to Bengal and Fort St. George to take in Bengal and Coromandel goods for Europe. Instructions were given to make great efforts for recovering a share of the spice trade. Bantam, however, was at this time blockaded by the Dutch, and no accounts were this year received of the traffic in the southern islands." The operations of the new joint-stock were not more prosperous than those of the old. Transactions at the several factories were feeble and unsuccessful For two years, 1659-60, and 1660-61, there is no account of the Company's equipments; and their advances to India were no doubt small. "The embarrassed state of the Company's 2 Ibid. Ibid, 533. 1 Bruce, i. 532. 4 Bruce, 539, 540. The state of interest, both in India and England, appears incidentally in the accounts received by the Company from the agents at Surat, in the year 1658-59. These agents, after stating the narrowness of the funds placed at their disposal, recommend to the Directors rather to borrow money in England, which could easily be done at 4 per cent., than leave them to take up money in India at 8 or 9 per cent. Ibid, 542. 5 Bruce, 544. 6 Ibid, 549-551. BOOK I. CHAP. IV. 1659. BOOK I. funds at this particular period," says Mr. Bruce, "may CHAP. IV. be inferred from the resolutions they had taken to relinquish many of their out-stations, and to limit their trade in the Peninsula of India to the presidencies of Surat and Fort St. George, and their subordinate factories." 1661. Meanwhile Cromwell had died, and Charles II. ascended the throne. Amid the arrangements which took place between England and the continental powers, the Company were careful to press on the attention of government a list of grievances, which they represented themselves as still enduring at the hands of the Dutch; and an order was obtained, empowering them to take possession of the island of Polaroon. They afterwards complained that it was delivered to them in such a state of prepared desolation, as to be of no value. The truth is, it was of little value at best. On every change in the government of the country, it had been an important object with the Company to obtain a confirmation of their exclusive privileges. The usual policy was not neglected, on the accession of Charles II.; and a petition was presented to him for a renewal of the East India charter. As there appears not to have been, at that time, any body of opponents to make interest or importunity for a contrary measure, it was far easier to grant without inquiry, than to inquire and refuse; and Charles and his ministers had a predilection for easy rules of government. A charter, bearing date the 3rd of April, 1661, was accordingly granted, confirming the ancient privileges of the Company, and vesting in them authority to make peace and war with any prince or people, not being Christians; and to seize unlicensed persons within their limits, and send them to England. The two last were important privileges; and, with the right of administering justice consigned almost all the powers of government to the discretion of the Directors and their servants. It appears not that, on this occasion, the expedient of a new subscription for obtaining a capital was attempted. A new adjustment with regard to the privileges and dead stock in India would have been required. The jointstock was not as yet a definite and invariable sum, placed beyond the power of resumption, at the disposal of the 1 Bruce, 555. 2 Ibid, i. 553, 554. 3 Ibid. 557. Company, the shares only transferable by purchase and sale in the market. The capital was variable and fluctuating; formed by the sums which, on the occasion of each voyage, the individuals, who were free of the Company, chose to pay into the hands of the Directors, receiving credit for the amount in the Company's books, and proportional dividends on the profits of the voyage. Of this stock 500/. entitled a proprietor to a vote in the general courts; and the shares were transferable, even to such as were not free of the Company, upon paying 57. for admission.1 Of the amount either of the shipping or stock of the first voyage upon the renewed charter we have no account; but the instructions sent to India prescribed a reduction of the circle of trade. In the following year, 1662-63, two ships sailed for Surat, with a cargo in goods and bullion, amounting to 65,000l., of which it would appear that 28,300l. was consigned to Fort St. George. Next season there is no account of equipments. In 1664-65, two ships were sent out with the very limited value of 16,000l. The following season, the same number only of ships was equipped; and the value in money and goods consigned to Surat was 20,6007.; whether any thing in addition was afforded to Fort St. George does not appear; there was no consignment to Bantam. In 1666-67, the equipment seems to have consisted but of one vessel, consigned to Surat with a value of 16,000l.2 With these inadequate means, the operations of the Company in India were by necessity languid and humble. At Surat the out-factories and agencies were suppressed. Instructions were given to sell the English goods at low rates, for the purpose of ruining the interlopers. The Dutch, however, revenged the private traders; and, by the competition of their powerful capital, rendered the Company's business difficult and unprofitable. On the Coromandel coast the wars among the native chiefs, and the overbearing influence of the Dutch, cramped and threatened to extinguish the trade of the English. And at Bantam, where the Dutch power was most sensibly felt, the feeble 1 Anderson's History of Commerce, in Macpherson's Annals, ii. 495, 605. 2 Bruce, ii. 108, 119, 152, 186. BOOK 1. CHAP. IV. 1662-67. |