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
The publication of these examinations, of course, increased the
ferment, which had begun to prevail on the subject of Indian affairs,
and they were much talked of and discussed during the recess of
Parliament that followed. Things had long been retrograding in India.
So far back as May, 1769, the disastrous news from Madras, of Hyder's
success, had produced a fall of 60 per cent. in the price of India
stock. This the Directors had treated as an evil speedily to be
removed. But that event was closely followed by news of a famine in
Bengal in the following year; while trade declined, difficulties of
every kind increased, and the debt of Calcutta was rapidly rising.
Still, however, the Directors went on, in hopes of a favourable
change, and from year to year, while their means diminished, the rate
of dividend was increased; till, in 1770, it had reached 12 per cent.
The extent of the bills from Bengal had excited alarm even then; but
in the face of them, the Directors, at the first quarterly court in
1771, communicated their opinion, that the dividend should be raised
a quarter per cent. for the ensuing half year; thus completing the
12-1/2 per cent., the highest annual dividend that by the act was
allowed to be drawn in the most prosperous circumstances. Their return
to power they had owed to the assistance of the party which demanded
a rise of dividend, and they were resolved to retain its support by
a perseverance in their favourite object. Lord Clive had opposed
the whole course of conduct of the Directors, their contract with
Government, and the system which they pursued, both at home and abroad;
though with little other effect than that of drawing on himself their
active hostility. The inquiries in Parliament, however, had weakened
the power of the Directors. The state of the Company's affairs could
not now be permanently concealed. They found difficulties thickening
around them. They were divided among themselves. Their expenses abroad
threatened, not only to swallow up all the revenue of the country, but
to burden them in both countries with an intolerable load of debt. By
their recent engagements with Government they had given ministers a
right to interfere in their concerns, and, in fact, placed themselves
in their power. They contrived, however, to procrastinate, and to avoid
any crisis, until the Parliament had risen.
Public-domain text, read in full here on John Shaqi.
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