The Life of Robert, Lord Clive, Vol. 3 (of 3): Collected from the Family Papers Communicated by the Earl of PowisMalcolm, John
History
The Life of Robert, Lord Clive, Vol. 3 (of 3): Collected from the Family Papers Communicated by the Earl of Powis
Malcolm, John
Clive, Robert Clive, Baron, 1725-1774; India -- History -- British occupation, 1765-1947
There is, perhaps, no instance in history of a country that has
continued, for any considerable length of time, to send a very large
proportion of its revenues, as a regular tribute, out of its own
territory. The difficulty is to get a country, however rich, to be
able to supply the expenses of its own government. This, even in the
most favourable circumstances, is no easy task. A bold, active, and
resolute ruler, like Frederick of Prussia, or Lord Clive, may, by the
force of personal character, reduce expenses, for a given time, within
the narrowest bounds; but the natural tendency of a prosperous country
is, to contrive means of consuming on the spot, by indulgences, which
come to be considered as necessaries, and by corresponding salaries or
allowances, the whole sum that is raised by taxation. A country like
Bengal, in which the European, so far as the native was concerned, was
subject to the influence of no public opinion, and so far as regarded
his own countrymen, to a very imperfect one, was not likely to form an
exception to this rule. The golden dreams, in which all parties had
indulged from the wealth of the country, were rudely disturbed, though
none were quite sure of the exact causes.
We have already seen that an agreement, for one year, was concluded
between the Government and the Directors, in 1767, and renewed in the
ensuing year, by which the Company became bound to pay 400,000_l._ in
each of these years to the Government. When the agreement was about to
expire, the Directors were again strongly pressed by the Government,
and after some negotiation a bargain was concluded, by which the
Company agreed to pay to the public the sum of 400,000_l._ annually,
for five years longer; besides undertaking to export a certain value of
British goods: they were to be at liberty to increase their dividend,
during that time, to 12-1/2 per cent., the increase not to exceed 1
per cent. in any one year. If the Company were under the necessity of
reducing their dividend, an equal proportion was to be deducted from
the annual payment to Government; and if their dividends were reduced
to 6 per cent., the payment to the public was to cease altogether.
Provision was also made for the case of a large surplus, and its
appropriation prescribed.
Public-domain text, read in full here on John Shaqi.
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