Writing in 1725, the French naval commander, the Chevalier d'Albert, tells us that the three most handsome towns on the Ganges were Calcutta, Chandernagore, and Chinsurah, the chief Factories of the English, French, and Dutch. These towns were all situated within thirty miles of each other. Calcutta, the latest founded, was the greatest and the richest, owing partly to its situation, which permitted the largest ships of the time to anchor at its quays, and partly to the privilege enjoyed by the English merchants of trading freely as individuals through the length and breadth of the land. Native merchants and native artisans crowded to Calcutta, and the French and Dutch, less advantageously situated and hampered by restrictions of trade, had no chance of competing with the English on equal terms. The same was of course true of their minor establishments in the interior. All three nations had important Factories at Cossimbazar (in the neighbourhood of Murshidabad, the Capital of Bengal) and at Dacca, and minor Factories at Jugdea or Luckipore, and at Balasore. The French and Dutch had also Factories at Patna. Besides Calcutta, Chandernagore, and Chinsurah, the only Factory which was fortified was the English Factory at Cossimbazar. During the long reign of the usurper, Aliverdi Khan,[1] that strong and politic ruler enforced peace among his European guests, and forbade any fortification of the Factories, except such as was necessary to protect them against possible incursions of the Marathas, who at that time made periodical attacks on Muhammadans and Hindus alike to enforce the payment of the _chauth_,[2] or blackmail, which they levied upon all the countries within their reach. In Southern India the English and French had been constantly at war whenever there was war in Europe, but in Bengal the strength of the Government, the terror of the Marathas, and the general weakness of the Europeans had contrived to enforce a neutrality. Still there was nothing to guarantee its continuance if the fear of the native Government and of the Marathas were once removed, and if any one of the three nations happened to find itself much stronger than the others. The fear of the Marathas had nearly disappeared, but that of the Government still remained. However, it was not till more than sixty years after the foundation of Calcutta that there appeared any possibility of a breach of peace amongst the Europeans in Bengal. During this time the three Factories, Calcutta always leading, increased rapidly in wealth and importance. To the Government they were already a cause of anxiety and an object of greed. Even during the life of Aliverdi Khan there were many of his counsellors who advised the reduction of the status of Europeans to that of the Armenians, i.e. mere traders at the mercy of local officials; but Aliverdi Khan, whether owing to the enfeeblement of his energies by age or to an intelligent recognition of the value of