The Directors replied to this very letter, lamenting their conviction of its literal truth.—“We have the strongest sense of the deplorable state to which our affairs were on the point of being reduced, from the corruption and rapacity of our servants, and _the universal depravity of manners throughout the settlement_. The general relaxation of all discipline and obedience, both military and civil, was hastily tending to a dissolution of all government. Our letter to the Select Committee expresses our sentiments of what has been obtained by way of donations; and to that we must add, that we think the vast fortunes acquired in the inland trade _have been obtained by a scene of the most tyrannic and oppressive conduct that was ever known in any age or country_!” But however the Directors at home might lament, they were too far off to put an end to this “scene of the most tyrannic and oppressive conduct that was ever known in any age or country.” This very same grave and eloquent preacher on this oppression and corruption, Clive, was the first to set the example of contempt of the Directors’ orders, and commission of those evil practices. The Directors had sent out fresh covenants to be entered into by all their servants, both civil and military, binding them not to receive presents, nor to engage in inland trade; but it was found that the governor had not so much as brought the new covenants under the consideration of the council. The receipt of presents, and the inland trade by the Company’s servants went on with increased activity. When at length these covenants were forwarded to the different factories and garrisons, General Carnac, and everybody else signed them. General Carnac however delayed his signing of them till he had time to obtain a present of two lacs of rupees (upwards of 20,000_l._) from the reduced and impoverished Emperor. Clive appointed a committee to inquire into these matters, which brought to light strange scenes of rapacity, and of “threats to extort gifts.” But what did Clive? He himself entered largely into private trade and into a vast monopoly of salt, an article of the most urgent necessity to the people; and this on the avowed ground of wishing some gentlemen whom he had brought out to make a fortune. His committee sanctioned the private trade in salt, betel-nut, and tobacco, out of which nearly all the abuses and miseries he complained of had grown, only confining it to the _superior servants_ of the Company: and he himself, when the orders of the Directors were laid before him in council, carelessly turned them aside, saying, the Directors, when they wrote them, could not know what changes had taken place in India. No! they did not know that he and his council were now partners in the salt trade, and realizing a profit, including interest, of upwards of fifty per cent.! Perhaps Clive thought he had done a great service when he had attempted to lessen the number of harpies by