The History of England, from the Accession of James II — Volume 4

But this wonderful prosperity was not uninterrupted. Towards the close of the reign of Charles the Second the Company began to be fiercely attacked from without, and to be at the same time distracted by internal dissensions. The profits of the Indian trade were so tempting, that private adventurers had often, in defiance of the royal charter, fitted out ships for the Eastern seas. But the competition of these interlopers did not become really formidable till the year 1680. The nation was then violently agitated by the dispute about the Exclusion Bill. Timid men were anticipating another civil war. The two great parties, newly named Whigs and Tories, were fiercely contending in every county and town of England; and the feud soon spread to every corner of the civilised world where Englishmen were to be found.

The Company was popularly considered as a Whig body. Among the members of the directing committee were some of the most vehement Exclusionists in the City. Indeed two of them, Sir Samuel Barnardistone and Thomas Papillon, drew on themselves a severe persecution by their zeal against Popery and arbitrary power. 162 Child had been originally brought into the direction by these men; he had long acted in concert with them; and he was supposed to hold their political opinions. He had, during many years, stood high in the esteem of the chiefs of the parliamentary opposition, and had been especially obnoxious to the Duke of York. 163 The interlopers therefore determined to affect the character of loyal men, who were determined to stand by the throne against the insolent tribunes of the City. They spread, at all the factories in the East, reports that England was in confusion, that the sword had been drawn or would immediately be drawn, and that the Company was forward in the rebellion against the Crown. These rumours, which, in truth, were not improbable, easily found credit among people separated from London by what was then a voyage of twelve months. Some servants of the Company who were in ill humour with their employers, and others who were zealous royalists, joined the private traders. At Bombay, the garrison and the great body of the English inhabitants declared that they would no longer obey any body who did not obey the King; they imprisoned the Deputy Governor; and they proclaimed that they held the island for the Crown. At Saint Helena there was a rising. The insurgents took the name of King's men, and displayed the royal standard. They were, not without difficulty, put down; and some of them were executed by martial law. 164

If the Company had still been a Whig Company when the news of these commotions reached England, it is probable that the government would have approved of the conduct of the mutineers, and that the charter on which the monopoly depended would have had the fate which about the same time befell so many other charters. But while the interlopers were, at a distance of many thousands of miles, making war on the Company in the name of the King, the Company and the King had been reconciled. When the Oxford Parliament had been dissolved, when many signs indicated that a strong reaction in favour of prerogative was at hand, when all the corporations which had incurred the royal displeasure were beginning to tremble for their franchises, a rapid and complete revolution took place at the India House. Child, who was then Governor, or, in the modern phrase, Chairman, separated himself from his old friends, excluded them from the direction, and negotiated a treaty of peace and of close alliance with the Court. 165 It is not improbable that the near connection into which he had just entered with the great Tory house of Beaufort may have had something to do with this change in his politics. Papillon, Barnardistone, and their adherents, sold their stock; their places in the committee were supplied by persons devoted to Child; and he was thenceforth the autocrat of the Company. The treasures of the Company were absolutely at his disposal. The most important papers of the Company were kept, not in the muniment room of the office in Leadenhall Street, but in his desk at Wanstead. The boundless power which he exercised at the India House enabled him to become a favourite at Whitehall; and the favour which he enjoyed at Whitehall confirmed his power at the India House. A present of ten thousand guineas was graciously received from him by Charles. Ten thousand more were accepted by James, who readily consented to become a holder of stock. All who could help or hurt at Court, ministers, mistresses, priests, were kept in good humour by presents of shawls and silks, birds' nests and atar of roses, bulses of diamonds and bags of guineas. 166 Of what the Dictator expended no account was asked by his colleagues; and in truth he seems to have deserved the confidence which they reposed in him. His bribes, distributed with judicious prodigality, speedily produced a large return. Just when the Court became all powerful in the State, he became all powerful at the Court. Jeffreys pronounced a decision in favour of the monopoly, and of the strongest acts which had been done in defence of the monopoly. James ordered his seal to be put to a new charter which confirmed and extended all the privileges bestowed on the Company by his predecessors. All captains of Indiamen received commissions from the Crown, and were permitted to hoist the royal ensigns. 167 John Child, brother of Sir Josiah, and Governor of Bombay, was created a baronet by the style of Sir John Child of Surat: he was declared General of all the English forces in the East; and he was authorised to assume the title of Excellency. The Company, on the other hand, distinguished itself among many servile corporations by obsequious homage to the throne, and set to all the merchants of the kingdom the example of readily and even eagerly paying those customs which James, at the commencement of his reign, exacted without the authority of Parliament. 168

It seemed that the private trade would now be utterly crushed, and that the monopoly, protected by the whole strength of the royal prerogative, would be more profitable than ever. But unfortunately just at this moment a quarrel arose between the agents of the Company in India and the Mogul Government. Where the fault lay is a question which was vehemently disputed at the time, and which it is now impossible to decide. The interlopers threw all the blame on the Company. The Governor of Bombay, they affirmed, had always been grasping and violent; but his baronetcy and his military commission had completely turned his head. The very natives who were employed about the factory had noticed the change, and had muttered, in their broken English, that there must be some strange curse attending the word Excellency; for that, ever since the chief of the strangers was called Excellency, every thing had gone to ruin. Meanwhile, it was said, the brother in England had sanctioned all the unjust and impolitic acts of the brother in India, till at length insolence and rapine, disgraceful to the English nation and to the Christian religion, had roused the just resentment of the native authorities. The Company warmly recriminated. The story told at the India House was that the quarrel was entirely the work of the interlopers, who were now designated not only as interlopers but as traitors. They had, it was alleged, by flattery, by presents, and by false accusations, induced the viceroys of the Mogul to oppress and persecute the body which in Asia represented the English Crown. And indeed this charge seems not to have been altogether without foundation. It is certain that one of the most pertinacious enemies of the Childs went up to the Court of Aurengzebe, took his station at the palace gate, stopped the Great King who was in the act of mounting on horseback, and, lifting a petition high in the air, demanded justice in the name of the common God of Christians and Mussulmans. 169 Whether Aurengzebe paid much attention to the charges brought by infidel Franks against each other may be doubted. But it is certain that a complete rupture took place between his deputies and the servants of the Company. On the sea the ships of his subjects were seized by the English. On land the English settlements were taken and plundered. The trade was suspended; and, though great annual dividends were still paid in London, they were no longer paid out of annual profits.

Just at this conjuncture, while every Indiaman that arrived in the Thames was bringing unwelcome news from the East, all the politics of Sir Josiah were utterly confounded by the Revolution. He had flattered himself that he had secured the body of which he was the chief against the machinations of interlopers, by uniting it closely with the strongest government that had existed within his memory. That government had fallen; and whatever had leaned on the ruined fabric began to totter. The bribes had been thrown away. The connections which had been the strength and boast of the corporation were now its weakness and its shame. The King who had been one of its members was an exile. The judge by whom all its most exorbitant pretensions had been pronounced legitimate was a prisoner. All the old enemies of the Company, reinforced by those great Whig merchants whom Child had expelled from the direction, demanded justice and vengeance from the Whig House of Commons, which had just placed William and Mary on the throne. No voice was louder in accusation than that of Papillon, who had, some years before, been more zealous for the charter than any man in London. 170 The Commons censured in severe terms the persons who had inflicted death by martial law at Saint Helena, and even resolved that some of those offenders should be excluded from the Act of Indemnity. 171 The great question, how the trade with the East should for the future be carried on, was referred to a Committee. The report was to have been made on the twenty-seventh of January 1690; but on that very day the Parliament ceased to exist.

The first two sessions of the succeeding Parliament were so short and so busy that little was said about India in either House. But, out of Parliament, all the arts both of controversy and of intrigue were employed on both sides. Almost as many pamphlets were published about the India trade as about the oaths. The despot of Leadenhall Street was libelled in prose and verse. Wretched puns were made on his name. He was compared to Cromwell, to the King of France, to Goliath of Gath, to the Devil. It was vehemently declared to be necessary that, in any Act which might be passed for the regulation of our traffic with the Eastern seas, Sir Josiah should be by name excluded from all trust. 172

There were, however, great differences of opinion among those who agreed in hating Child and the body of which he was the head. The manufacturers of Spitalfields, of Norwich, of Yorkshire, and of the Western counties, considered the trade with the Eastern seas as rather injurious than beneficial to the kingdom. The importation of Indian spices, indeed, was admitted to be harmless, and the importation of Indian saltpetre to be necessary. But the importation of silks and of Bengals, as shawls were then called, was pronounced to be a curse to the country. The effect of the growing taste for such frippery was that our gold and silver went abroad, and that much excellent English drapery lay in our warehouses till it was devoured by the moths. Those, it was said, were happy days for the inhabitants both of our pasture lands and of our manufacturing towns, when every gown, every hanging, every bed, was made of materials which our own flocks had furnished to our own looms. Where were now the brave old hangings of arras which had adorned the walls of lordly mansions in the days of Elizabeth? And was it not a shame to see a gentleman, whose ancestors had worn nothing but stuffs made by English workmen out of English fleeces, flaunting in a calico shirt and a pair of silk stockings? Clamours such as these had, a few years before, extorted from Parliament the Act which required that the dead should be wrapped in woollen; and some sanguine clothiers hoped that the legislature would, by excluding all Indian textures from our ports, impose the same necessity on the living. 173

But this feeling was confined to a minority. The public was, indeed, inclined rather to overrate than to underrate the benefits which might be derived by England from the Indian trade. What was the most effectual mode of extending that trade was a question which excited general interest, and which was answered in very different ways.

A small party, consisting chiefly of merchants resident at Bristol and other provincial seaports, maintained that the best way to extend trade was to leave it free. They urged the well known arguments which prove that monopoly is injurious to commerce; and, having fully established the general law, they asked why the commerce between England and India was to be considered as an exception to that law. Any trader ought, they said, to be permitted to send from any port a cargo to Surat or Canton as freely as he now sent a cargo to Hamburg or Lisbon. 174 In our time these doctrines may probably be considered, not only as sound, but as trite and obvious. In the seventeenth century, however, they were thought paradoxical. It was then generally held to be a certain, and indeed an almost selfevident truth, that our trade with the countries lying beyond the Cape of Good Hope could be advantageously carried on only by means of a great Joint Stock Company. There was no analogy, it was said, between our European trade and our Indian trade. Our government had diplomatic relations with the European States. If necessary, a maritime force could easily be sent from hence to the mouth of the Elbe or of the Tagus. But the English Kings had no envoy at the Court of Agra or Pekin. There was seldom a single English man of war within ten thousand miles of the Bay of Bengal or of the Gulf of Siam. As our merchants could not, in those remote seas, be protected by their Sovereign, they must protect themselves, and must, for that end, exercise some of the rights of sovereignty. They must have forts, garrisons and armed ships. They must have power to send and receive embassies, to make a treaty of alliance with one Asiatic prince, to wage war on another. It was evidently impossible that every merchant should have this power independently of the rest. The merchants trading to India must therefore be joined together in a corporation which could act as one man. In support of these arguments the example of the Dutch was cited, and was generally considered as decisive. For in that age the immense prosperity of Holland was every where regarded with admiration, not the less earnest because it was largely mingled with envy and hatred. In all that related to trade, her statesmen were considered as oracles, and her institutions as models.

The great majority, therefore, of those who assailed the Company assailed it, not because it traded on joint funds and possessed exclusive privileges, but because it was ruled by one man, and because his rule had been mischievous to the public, and beneficial only to himself and his creatures. The obvious remedy, it was said, for the evils which his maladministration had produced was to transfer the monopoly to a new corporation so constituted as to be in no danger of falling under the dominion either of a despot or of a narrow oligarchy. Many persons who were desirous to be members of such a corporation, formed themselves into a society, signed an engagement, and entrusted the care of their interests to a committee which contained some of the chief traders of the City. This society, though it had, in the eye of the law, no personality, was early designated, in popular speech, as the New Company; and the hostilities between the New Company and the Old Company soon caused almost as much excitement and anxiety, at least in that busy hive of which the Royal Exchange was the centre, as the hostilities between the Allies and the French King. The headquarters of the younger association were in Dowgate; the Skinners lent their stately hall; and the meetings were held in a parlour renowned for the fragrance which exhaled from a magnificent wainscot of cedar. 175

While the contention was hottest, important news arrived from India, and was announced in the London Gazette as in the highest degree satisfactory. Peace had been concluded between the great Mogul and the English. That mighty potentate had not only withdrawn his troops from the factories, but had bestowed on the Company privileges such as it had never before enjoyed. Soon, however, appeared a very different version of the story. The enemies of Child had, before this time, accused him of systematically publishing false intelligence. He had now, they said, outlied himself. They had obtained a true copy of the Firman which had put an end to the war; and they printed a translation of it. It appeared that Aurengzebe had contemptuously granted to the English, in consideration of their penitence and of a large tribute, his forgiveness for their past delinquency, had charged them to behave themselves better for the future, and had, in the tone of a master, laid on them his commands to remove the principal offender, Sir John Child, from power and trust. The death of Sir John occurred so seasonably that these commands could not be obeyed. But it was only too evident that the pacification which the rulers of the India House had represented as advantageous and honourable had really been effected on terms disgraceful to the English name. 176

During the summer of 1691, the controversy which raged on this subject between the Leadenhall Street Company and the Dowgate Company kept the City in constant agitation. In the autumn, the Parliament had no sooner met than both the contending parties presented petitions to the House of Commons. 177 The petitions were immediately taken into serious consideration, and resolutions of grave importance were passed. The first resolution was that the trade with the East Indies was beneficial to the kingdom; the second was that the trade with the East Indies would be best carried on by a joint stock company possessed of exclusive privileges. 178 It was plain, therefore, that neither those manufacturers who wished to prohibit the trade, nor those merchants at the outports who wished to throw it open, had the smallest chance of attaining their objects. The only question left was the question between the Old and the New Company. Seventeen years elapsed before that question ceased to disturb both political and commercial circles. It was fatal to the honour and power of one great minister, and to the peace and prosperity of many private families. The tracts which the rival bodies put forth against each other were innumerable. If the drama of that age may be trusted, the feud between the India House and Skinners' Hall was sometimes as serious an impediment to the course of true love in London as the feud of the Capulets and Montagues had been at Verona. 179 Which of the two contending parties was the stronger it is not easy to say. The New Company was supported by the Whigs, the Old Company by the Tories. The New Company was popular; for it promised largely, and could not be accused of having broken its promises; it made no dividends, and therefore was not envied; it had no power to oppress, and had therefore been guilty of no oppression. The Old Company, though generally regarded with little favour by the public, had the immense advantage of being in possession, and of having only to stand on the defensive. The burden of framing a plan for the regulation of the India trade, and of proving that plan to be better than the plan hitherto followed, lay on the New Company. The Old Company had merely to find objections to every change that was proposed; and such objections there was little difficulty in finding. The members of the New Company were ill provided with the means of purchasing support at Court and in Parliament. They had no corporate existence, no common treasury. If any of them gave a bribe, he gave it out of his own pocket, with little chance of being reimbursed. But the Old Company, though surrounded by dangers, still held its exclusive privileges, and still made its enormous profits. Its stock had indeed gone down greatly in value since the golden days of Charles the Second; but a hundred pounds still sold for a hundred and twenty-two. 180 After a large dividend had been paid to the proprietors, a surplus remained amply sufficient, in those days, to corrupt half a cabinet; and this surplus was absolutely at the disposal of one able, determined and unscrupulous man, who maintained the fight with wonderful art and pertinacity.

The majority of the Commons wished to effect a compromise, to retain the Old Company, but to remodel it, to impose on it new conditions, and to incorporate with it the members of the New Company. With this view it was, after long and vehement debates and close divisions, resolved that the capital should be increased to a million and a half. In order to prevent a single person or a small junto from domineering over the whole society, it was determined that five thousand pounds of stock should be the largest quantity that any single proprietor could hold, and that those who held more should be required to sell the overplus at any price not below par. In return for the exclusive privilege of trading to the Eastern seas, the Company was to be required to furnish annually five hundred tons of saltpetre to the Crown at a low price, and to export annually English manufactures to the value of two hundred thousand pounds. 181

A bill founded on these resolutions was brought in, read twice, and committed, but was suffered to drop in consequence of the positive refusal of Child and his associates to accept the offered terms. He objected to every part of the plan; and his objections are highly curious and amusing. The great monopolist took his stand on the principles of free trade. In a luminous and powerfully written paper he exposed the absurdity of the expedients which the House of Commons had devised. To limit the amount of stock which might stand in a single name would, he said, be most unreasonable. Surely a proprietor whose whole fortune was staked on the success of the Indian trade was far more likely to exert all his faculties vigorously for the promotion of that trade than a proprietor who had risked only what it would be no great disaster to lose. The demand that saltpetre should be furnished to the Crown for a fixed sum Child met by those arguments, familiar to our generation, which prove that prices should be left to settle themselves. To the demand that the Company should bind itself to export annually two hundred thousand pounds' worth of English manufactures he very properly replied that the Company would most gladly export two millions' worth if the market required such a supply, and that, if the market were overstocked, it would be mere folly to send good cloth half round the world to be eaten by white ants. It was never, he declared with much spirit, found politic to put trade into straitlaced bodices, which, instead of making it grow upright and thrive, must either kill it or force it awry.

The Commons, irritated by Child's obstinacy, presented an address requesting the King to dissolve the Old Company, and to grant a charter to a new Company on such terms as to His Majesty's wisdom might seem fit. 182 It is plainly implied in the terms of this address that the Commons thought the King constitutionally competent to grant an exclusive privilege of trading to the East Indies.

The King replied that the subject was most important, that he would consider it maturely, and that he would, at a future time, give the House a more precise answer. 183 In Parliament nothing more was said on the subject during that session; but out of Parliament the war was fiercer than ever; and the belligerents were by no means scrupulous about the means which they employed. The chief weapons of the New Company were libels; the chief weapons of the Old Company were bribes.

In the same week in which the bill for the regulation of the Indian trade was suffered to drop, another bill which had produced great excitement and had called forth an almost unprecedented display of parliamentary ability, underwent the same fate.

During the eight years which preceded the Revolution, the Whigs had complained bitterly, and not more bitterly than justly, of the hard measure dealt out to persons accused of political offences. Was it not monstrous, they asked, that a culprit should be denied a sight of his indictment? Often an unhappy prisoner had not known of what he was accused till he had held up his hand at the bar. The crime imputed to him might be plotting to shoot the King; it might be plotting to poison the King. The more innocent the defendant was, the less likely he was to guess the nature of the charge on which he was to be tried; and how could he have evidence ready to rebut a charge the nature of which he could not guess? The Crown had power to compel the attendance of witnesses. The prisoner had no such power. If witnesses voluntarily came forward to speak in his favour, they could not be sworn. Their testimony therefore made less impression on a jury than the testimony of the witnesses for the prosecution, whose veracity was guaranteed by the most solemn sanctions of law and of religion. The juries, carefully selected by Sheriffs whom the Crown had named, were men animated by the fiercest party spirit, men who had as little tenderness for an Exclusionist of a Dissenter as for a mad dog. The government was served by a band of able, experienced and unprincipled lawyers, who could, by merely glancing over a brief, distinguish every weak and every strong point of a case, whose presence of mind never failed them, whose flow of speech was inexhaustible, and who had passed their lives in dressing up the worse reason so as to make it appear the better. Was it not horrible to see three or four of these shrewd, learned and callous orators arrayed against one poor wretch who had never in his life uttered a word in public, who was ignorant of the legal definition of treason and of the first principles of the law of evidence, and whose intellect, unequal at best to a fencing match with professional gladiators, was confused by the near prospect of a cruel and ignominious death? Such however was the rule; and even for a man so much stupefied by sickness that he could not hold up his hand or make his voice heard, even for a poor old woman who understood nothing of what was passing except that she was going to be roasted alive for doing an act of charity, no advocate was suffered to utter a word. That a state trial so conducted was little better than a judicial murder had been, during the proscription of the Whig party, a fundamental article of the Whig creed. The Tories, on the other hand, though they could not deny that there had been some hard cases, maintained that, on the whole, substantial justice had been done. Perhaps a few seditious persons who had gone very near to the frontier of treason, but had not actually passed that frontier, might have suffered as traitors. But was that a sufficient reason for enabling the chiefs of the Rye House Plot and of the Western Insurrection to elude, by mere chicanery, the punishment of their guilt? On what principle was the traitor to have chances of escape which were not allowed to the felon? The culprit who was accused of larceny was subject to all the same disadvantages which, in the case of regicides and rebels, were thought so unjust; ye nobody pitied him. Nobody thought it monstrous that he should not have time to study a copy of his indictment, that his witnesses should be examined without being sworn, that he should be left to defend himself, without the help of counsel against the best abilities which the Inns of Court could furnish. The Whigs, it seemed, reserved all their compassion for those crimes which subvert government and dissolve the whole frame of human society. Guy Faux was to be treated with an indulgence which was not to be extended to a shoplifter. Bradshaw was to have privileges which were refused to a boy who had robbed a henroost.