1765. CHAP. felves was plainly shown; and it was alledged, that they III. muft, in a fhort time, fall under the jurifdiction of fome foreign power, if they did not continue in subjection to Britain. Laftly, The diftinction betwixt external and internal taxation was faid to be fallacious, as a tax laid on any particular place neceffarily affects the whole empire. The obligation betwixt the mother country and the colonies must be natural and reciprocal, viz. defence on the one part, and obedience on the other; and, if the colonies were to be obedient in one point, they must be so in every the flamp other or not at all. The queftion, however, was not now to be decided by argumentation. The whole empire, on this as well as the other fide of the Atlantic, was in a ferment. Petitions had been received from the merchants of London, Bristol, and feveral other large trading towns of England and Scotland, fetting forth, that, by the new laws and regulations relating to America, trade was greatly decayed; many thoufand manufacturers, feamen, and labourers, who had for-. merly been employed in various departments relative to the American trade, were now not only unemployed, but, that the total flagnation of that trade had accafioned many bankruptcies, and was likely to occafion many more. The petitioners were therefore under a neceffity of applying to the Houfe, in order to fecure themselves and families from ruin, to prevent a multitude of manufacturers from becoming a burden to the community, or emigrating, in order to feek bread in foreign countries, &c. A petition, to the fame purpofe, was fent from the ifland of Jamaica, and others from the colonies of Virginia and Georgia, fetting forth the utter inability of these provinces to pay the ftamp-duty. But neither the number of petitions, nor the arguments of ministry, had any effect upon the oppofite party. On the contrary, they affected to confider the petitions themselves, as the effects of miniterial artifice; but, even granting them to be genuine, they contended, that it was better to fubmit to a temporary inconvenience, than totally to give up the dependence of the colonies on the mother-country, which muft infalliby be the confequence, were the ftamp-act, at this time, to be repealed. . The general voice of the nation, however, was fo ftrong for the repeal of the ftamp-act, thar the miniftry at laft Repeal of carried their point, though, when the bill, for this purpose, was fent to the upper houfe, no fewer than thirty-three lords entered a proteft againft it at the fecond reading, and twenty-eight at the third. But the news of the repeal act. was received with universal demonstrations of joy, both in CHAP. Great-Britain and America. pro III. 1765. Declarato That the ministry might not seem to be wanting in their endeavours to preserve the authority of the parent-state, at the fame time that they repealed the ftamp-act, another was ry and other paffed, to indemnify fuch as had incurred penalties on ac- bills palcount of it; and a requifition was also made to the fed. vinces of North-America, to make proper compenfation, to fuch as had fuffered, on account of their adherence to government, during the late exertions of popular viclence. An act was likewise paffed, at the fame time, by which the dependency of the colonies on Great-Britain, was declared in the most explicit terms; all votes, refolutions, or orders, which had been paffed by any of the general affemblies in America, by which, they affumed to themfelves, the fole and exclufive privilege, of taxing his majesty's fubjects in the colonies, were annulled, and declared contrary to law, derogatory to the legislative authority of parliament, and inconfiftent with their dependency upon the By this expedient, of framing the declaratory bill, it was thought, that the honour of the mother-country would be fufficiently fafe, and that the Americans, having obtained what they fo much defired, would now, with one confent, return to their duty. At the fame time, to fhew, that their defire was equally great, to redrefs the grievances of their own country-men, the ministry procured a repeal of the cyder-act, the news of which, was received, with almoft as much joy in the cyder-counties, as the repeal of the ftamp-act had been in America. In foreign affairs also, they interfered with fuccefs. They concluded an advantageous treaty with the Emprefs of Ruffia, and fettled the. long-contefted affair of the Canada bills, and Manilla ranfom, By these proceedings, they had become extremely agreeable, to the people; but, when it was generally imagined, that they had thus thoroughly fixed themselves in office, a fud-, den change took place. On the 30th of July, 1766, thẹ Change of duke of Grafton was appointed firft lord of the treasury, Ministry. the earl of Shelburne, fecretary of ftate, lord Camden, lord high Chancellor, right honourable Charles Townfend, chancellor of the exchequer, and the earl of Chatham (raifed to the dignity of peerage a few days before) lord privy feal; and a great number of other changes were made in the various departments of state. CHAPTER IV. IV. 1766. Great Ex Great expectations formed from the new MinifryTheir inaprudent conduclEaft-India cffairs brought before Parliament, against the inclination of the Company-War with Hyder Ally- ·Restrictions impofed on the India Com-Conteft with the Ministry, and temporary accommodation of matters with them. pany THE CHAP. HE acceffion of lord Chatham (formerly the cele brated Mr. Pitt) to the new miniftry, gave the most favourable hopes of their wife and vigorous conduct; but the acceptance of a peerage, had not only diminished his pectations popular influence, but placed him in a difadvantageous fitu from the ation, as he had no longer an opportunity of exerting that new minif- powerful eloquence, which, in the house of commons, had often produced fuch wonderful effects. Many people, however, ftill continued to expect great things; but their hopes were finally overthrown by his lordship's bad state of health, which, after an unfuccefsful trial of the bath wa ters, obliged him to relinquifh all attention to bufinefs, fo that the other minifters were left to act as they thought proper, ary. the new niniftry. The conduct of the prefent administration was not atImprudent tended with any eclat. The firft affair of any confequence conduct of which engaged their attention, was the high price of provifions. This had excited great complaints, as well as tumults, through many parts of the kingdom, fo that, in not a few inftances, the magiftrates had been obliged to call in the military to fupprefs them. As the parliament was not then fitting, two proclamations were iffued, of date 11th and 26th September, 1766; the former for putting in force the laws against foreftallers, &c. the lats IV. 1766. ter to prevent the exportation of corn. As this laft prohi- CHAP. bition, however neceffary at the time, could not have been legally impofed without an act of parliament, wheat being ftill below the price at which it might, according to law, have been exported, the ministry not only fubjected themselves to the popular odium, by encroaching on the privileges of parliament, but were afterwards obliged to bring in a bill of indemnity to fecure the framers of their new law from punishment. On this occafion also, the first fymptoms appeared, of that jealoufy and difaffection among themfelves, which afterwards weakened their hands, and occafioned an universal langour throughout their proceedings. affairs The great fuccefs of the Eaft-India company in their Eaf-India treaties with the Mogul and princes of Bengal, has been company's already related. The proprietors, however, having known brought of all this wealth as yet only by report, and feen their fer before parvants return wallowing in riches, while their masters re- liament. ceived little or nothing, began to infift for an increase of dividend, which at this time stood at fix per cent. the loweft at which it had ever been, even in the most diftreffed fituation of the company's affairs. The directors, who confidered nothing but the debts of the company, were of a quite different opinion; in consequence of which, two factions immediately arofe, whofe difputes produced fuch confequences as neither party at the time had dreamed of. A report arofe, that government defigned to interfere in the affairs of India, and, though this, for fome time gained little credit, all parties were fully convinced of its truth, by a written meffage from the firft lord of the treasury, dated September 24th, 1765, in which it was fet forth, that," As the affairs of the Eaft-India company had been mentioned in parliament laft feffion, it was very probable that they might be taken into confideration again; therefore, from regard to the company, and that they might have time to prepare their papers for the occafion, notice was given, that the parliament would meet fome time in November." fne transactions in parliament relative to India affairs, commenced with the appointment of a committee for regulating them, and inquiring into the ftate of the Company. Their charters, treaties with different powers, letters of correfpondence, the state of their revenues, &c. were called for, with an account of all the expences of government on the Company's affairs, whether in the mili tary or any other department. As the intention of ministry by entering into this vigorous fcrutiny was plainly to attempt fome relief of the diftrefies of government, by feiz CHAP. ing part of the vast revenue of the Company, the greatest IV. part of the feffion was confumed in violent and fruitless debates. On the part of the Crown it was urged, that the 1766. Company could have no right to the vaft conquefts it had made in the eaft; their charters did not give any title to acquifitions by conqueft; it was dangerous to truft fo much power in the hands of a trading company; and, even granting it to be, in every respect, expedient to do fo, yet the vaft expence of government, in protecting the Company, gave it a juft title to all the revenues arifing from the conquefts. On the other hand it was answered, that the Crown had made no refervation of any right to conquefts made by the Company; the charter had been fairly purchased, and confirmed by act of parliament; and it was a dangerous infringement of public faith, as well as an invafion of private property, to question them. Befides, if the Crown could pretend any juft title either to the poffeffions themselves, or their revenues, the matter ought to be tried in a court of common law, and not before the House of Commons, which, according to the conftitution of Britain, was neither the interpreter of laws, nor the decider of legal rights. modation try propofed. Whatever might have been the iffue of the matter, had An accom- a more full difcuffion of it taken place, the most judicious with minif. part of the Company's friends thought it better to propose terms of accommodation with the miniftry, than to carry things to extremities. Propofals were accordingly made; but the minifters were now fo much divided, and at variance, that they could put no confidence in one another. The Company were therefore once more obliged to have recourfe to parliament. An accommodation was in confequence effected, by which the Company was to enjoy its former privileges, on condition of paying the fum of 400,000 1. annually for three years. A dividend of fix and a quarter per cent. was allowed; but they were re-. ftricted from exceeding ten per cent. until the next meeting of parliament. This laft reftriction which took place in confequence of a bill brought into parliament for regulating the making of dividends by the East India Company proved extremely difagreeable. The former debates were renewed with more acrimony than ever; and the Company perceiving that it ftruck directly at their privileges, offered to bind themfelves, in cafe it could be laid afide, from any farther increase of dividend during the time of the temporary agreement. The propofal, however, was rejected; the advo cates for the bill pretended, that it was neceflary to pre |