Meanwhile the council at Calcutta had twice found the opportunity they
desired of selling the government of Bengal to a new nawab. But in 1765
Clive (now Baron Clive of Plassey, in the peerage of Ireland) arrived at
Calcutta, as governor of Bengal for the second time, to settle the
entire system of relations with the native powers. Two objects stand out
conspicuously in his policy. First, he sought to acquire the substance,
though not the name, of territorial power, by using the authority of the
Mogul emperor for so much as he wished, and for no more; and, secondly,
he desired to purify the company's service by prohibiting illicit gains,
and at the same time guaranteeing a reasonable remuneration from honest
sources. In neither respect were the details of his plans carried out by
his successors. But the beginning of the British administration of India
dates from this second governorship of Clive, just as the origin of the
British empire in India dates from his victory at Plassey. Clive's first
step was to hurry up from Calcutta to Allahabad, and there settle in
person the fate of half northern India. Oudh was given back to the nawab
wazir, on condition of his paying half a million sterling towards the
expenses of the war. The provinces of Allahabad and Kora, forming the
lower part of the Doab, were handed over to Shah Alam himself, who in
his turn granted to the company the _diwani_ or financial administration
of Bengal, Behar and Orissa, together with the Northern Circars. A
puppet nawab was still maintained at Murshidabad, who received an annual
allowance of about half a million sterling; and half that amount was
paid to the emperor as tribute from Bengal. Thus was constituted the
dual system of government, by which the British received all the
revenues and undertook to maintain an army for the defence of the
frontier, while the criminal jurisdiction vested in the nawab. In Indian
phraseology, the company was _diwan_ and the nawab was _nazim_. As a
matter of general administration, the actual collection of the revenues
still remained for some years in the hands of native officials. In
attempting to reorganize and purify the company's service, Clive
undertook a task yet more difficult than to partition the valley of the
Ganges. The officers, civil and military alike, were all tainted with
the common corruption. Their legal salaries were absolutely
insignificant, but they had been permitted to augment them ten and a
hundredfold by means of private trade and gifts from the native powers.
Despite the united resistance of the civil servants, and an actual
mutiny of two hundred military officers, Clive carried through his
reforms. Both private trade and the receipt of presents were absolutely
prohibited for the future, while a substantial increase of pay was
provided out of the monopoly of salt.
Warren Hastings.
Public-domain text, read in full here on John Shaqi.
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