A. Letter to the Proprietors 
 of 'Blast -India Stock,
 
 UNIVERSITY OF CALIFORNIA 
 AT LOS ANGELES
 
 L E T T E R 
 
 TO THE 
 
 PROPRIETORS 
 
 O F 
 
 EAST-INDIA STOCK. 
 
 CONTAINING 
 
 A BRIEF RELATION 
 
 O F T H E 
 
 NEGOTIATIONS WITH GOVERNMENT, 
 
 FROM 
 
 The Year 1767, to the prefent Timej refpeHng the 
 Company's Acquifitions in INDIA. 
 
 Some Confiderations on the principal Plans for adjufting the 
 Matters in difpute, which have been djfcufled in the General 
 Court of Paoprietors. 
 
 LONDON: 
 
 Printed for B. WHITE, at Horace's Head, 
 in Fleetftreet. 
 
 MDCCLXIX.
 
 ADVERTISEMENT. 
 
 THE following flieets were written during the tranfaftions 
 therein related. The novelty and greatnefs of the object, 
 enabled a few defigning men to delude the Proprietors, and 
 Sacrifice the public jntereft to their own temporary views ; 
 which, however, to the ruin of the authors, have been defeated 
 by unforefeen accidents. If the perufal of thefe papers will 
 lead gentlemen to confider the conduct of men, without the 
 violence and prejudice of party, no apology will be necerl'ary 
 for this publication,
 
 t I ] 
 
 BRIEF 
 
 RELATION, 
 
 WHEN the firft news arrived of our 
 acquisitions in Bengal, fo fttdden an 
 cncreafe of wealth naturally drew the atten- 
 tion of every enterprizing man, who, having 
 little to lofe, thought his engagements could 
 not poHibly be too large in a ftock where there 
 appeared a certainty of gaining much. A 
 great number became fpeculators for time, 
 8 and 
 
 3548
 
 and it was then confidently reported that 
 more than double the Company's Capital had 
 been thus negotiated within fix months. 
 The harveft however was not fo near as thefe 
 Gentlemen had flattered themfelves. The Di- 
 rectors now proceeded to lay open the ftate of 
 affairs at home, which prudence had before 
 obliged them to conceal. It then appeared, 
 the Company had been compelled to exceed 
 thofe limits the Legiflature had prefcribed -, 
 that the debts amounted to 800,000 /. more 
 than the Company were enabled to borrow. 
 The Directors admitted the profpecl was 
 great; but at the fame time reprefented, 
 that it was indifferent to the Proprietor 
 whether he borrowed to divide, or wait- 
 ed till the money was actually received in 
 the Treafury; giving it as their opinion, that 
 the payment of thefe extra debts mould 
 be the firft application of the returns from 
 India, as a voluntary continuance in this ex- 
 cefs might afford an handle to thofe who 
 envied their prefent fituation. Such advice 
 was little relifhed by the fpeculating Gentry; 
 thev had already waded beyond their depth, 
 and, ne fcenore trncidentur y an immediate 
 often iible dividend became necelTary. Their 
 number encreafed every day: Mr. Sulivan, 
 from other views, put himfelf at their head ; 
 the friends of Lord Clive, thinking to delay 
 
 the
 
 [ 3 1 
 
 the fruits was to doubt the reality of his fuc- 
 cefs, concurred j and, though fome delay in- 
 terpofed, an addition of four per cent, was 
 made to the Dividend. 
 
 A party being thus formed, Mr. Suli- 
 van proceeded to enlift every man who had 
 conceived difguft againft the reigning pow- 
 ers. Continual abufe was heaped upon the 
 Directors : they were accufed of decrying the 
 Stock to buy with more advantage themfelves, 
 and refufing a dividend when 30 per cent, was 
 inadequate to our fuccefs. In vain did the 
 Directors deny the charge, and call upon their 
 antagonifls to name the man aaiong them who 
 had either bought or fold. The Cont'muators 
 in the Alley were difappointed of their expect- 
 ed profits, and the clamour encreafcd. 
 
 In the mean time, a doubt had been fug- 
 gefted to the Minifters, that the Revenues in 
 Bengal might poffibly belong to the Crown. 
 A meflage was accordingly fent to the India- 
 Houfe, intimating that the Company's affairs 
 would probably be the fubject of examination 
 in Parliament. The alarm once given, L ds, 
 Lacquies, and Merchants ran with equal hafte 
 to the Alley. Stock fell 30 per cent, while 
 the terror and anxiety in every countenance 
 afforded a truly ridiculous and comic fcene. 
 B 2 In
 
 t 4 ] 
 
 In Parliament the attack upon the Company 
 was led by a Gentleman, who has ever been 
 confidered as a ft range mixture of folly, wild- 
 nefs, good fenfe, and abfurdity ; who talked 
 of forfeiture of Charter, right of conqueft 
 in the Crown, &c. In fhort, were we to ga- 
 ther his opinion from his language (an attempt 
 we confefs to be raft), he feemed to think 
 it lawful to treat any rich body of men as 
 our King John did the Jew, who had feven 
 teeth drawn before he confented to part with 
 his money. 
 
 Our Directors, particularly our Chairman 
 and Deputy, who were examined at the Bar 
 of the Houfe, explained the caufe which had 
 obliged the Company to exceed their power of 
 borrowing; and (hewed, that the imputed 
 offence was the neceffary confequence of an 
 act of the Legiflature itfelf, the effects of 
 which had been an addition of 500,0007. per 
 annum to the Revenue. This filenced the 
 threats of a forfeiture ; but the apprehenfion 
 of a decifion upon the queftion of right in 
 Parliament (though it confeffedly could pro- 
 duce nothing without a further violation of 
 our Charter) operated fo powerfully on the 
 minds of the Proprietors, that authority was 
 given to their Directors to treat with the Trea- 
 
 fury
 
 [ 5 ] 
 
 fury refpe&ing a participation of the late ac- 
 quired Revenues between the Public and the 
 Company. 
 
 The Election approaching, an offer of Mr. 
 Sulivan to give more to both parties than the 
 Directors thought poffible, <uiz. 14 per cent. 
 to the Proprietors, and 900,000 /. to the 
 Public, created fome embarraffinent; but the 
 propolition of the Directors upon a ballot pre- 
 vailed. 
 
 The negotiation continued ; and, after a 
 prolongation of Charter, &c. had in vain 
 been infifted upon, an agreement was well nigh 
 eftablimed upon the following terms, viz. 
 400, ooo/. or 12^ per cent, to be firft deducted 
 from the clear produce of fales of the year, 
 for a Dividend to the Proprietors; one half of 
 the remainder [a] to be paid into the Trea- 
 fury, the other half to be appropriated to the 
 payment of debts. 
 
 If the duty of one milling per pound is ta- 
 ken from black teas, the Company to indem- 
 nify one half, provided the fame (hall never in 
 any one year exceed 70, ooo/. 
 
 [a] The difficulty here was whether one half or Ufo thirds 
 of this remainder (hould be paid to the Treafiuy. 
 
 B 3 Delay
 
 r 6 ] 
 
 Delay was ruinous to the Stockjobbers, who 
 in general paid an immenfe intereft for money. 
 They became impatient for a further Dividend, 
 and 1 2~ per cent, was voted by a General Court. 
 
 Some Members of Adminiftration, thinking 
 the increased Dividend ought to have accom- 
 panied the agreement above-mentioned, in- 
 troduced into the Houfe of Commons a re- 
 firaining Bill for one year. Him labor I bine 
 hcrymcz ! No compliance was too great ; 
 every public intereft was to be facrificed, ra- 
 ther than our Dividend delayed. Accordingly, 
 after fome private meetings with the Chancel- 
 lor of the Exchequer, and affurances [^] by 
 him given of defeating the impending Bill, a 
 vote was propofed in the General Court, and 
 carried, for an immediate gift of four hun- 
 dred thoufand pounds per ann. to the Public, 
 and a full indemnification flipulated on the 
 part of the Company for the one fhilling per 
 pound duty on black teas. 
 
 The Directors, hearing of this defign, pro- 
 duced an unanimous refolution of their court, 
 condemning the intended motion as dangerous 
 and unfafe to the Company. Their oppo- 
 fition however was vain. Friends and Foes, 
 
 [b] This pafled at the St. Alban's Tavern, where feveral 
 Leaders of the Opposition to the Dueftors were prefent. 
 
 equally
 
 .[ 7 ] 
 
 equally flattered with gaudy dreams of riches, 
 thought no undertakings beyond our prefent 
 ftrength ; and the adherents of a noble Lord in 
 particular, unacquainted with the mercantile 
 difficulties of remittance, declared this grant 
 but a fmall proportion of our boundlefs wealth. 
 
 It is difficult to account for Mr. Sulivan's 
 conduct, who fupported this queftion, with- 
 out fuppofing an utter ignorance of our 
 Trade; but as this Gentleman's abilities have 
 been much extolled, we muft conclude that 
 his knowledge refers to fome other branch of 
 the Company's affairs. Be this as it may, his 
 friends found themfelves deceived by Parlia- 
 ment,, and an heavy burthen entailed upon 
 the Company ; while at the fame time the 
 retraining Bill pafled the Houfe, Mr. Town- 
 fend, the Chancellor of the Exchequer, divi- 
 ding in the Minority. 
 
 It was feen, that the refolutions of the 
 Proprietors might again be governed by the 
 expectation of an additional 2^ per cent, di- 
 vidend, when the fubfifting agreement ex- 
 pired: and the precedent being already efta- 
 bliihed, next year a fecond reftraining Bill took 
 its rife in the Houfe of Commons. Petitions 
 were prefented : an eftirnate of the probable 
 receipts and diiburfements was fabricated, to 
 
 prove
 
 t 8 ] 
 
 prove the Company's debts would be dif- 
 charged within the year. Mr. Rous's tefti- 
 mony at the Bar of the Lords, upon this oc- 
 cafion, gave great fcandal to the more violent 
 Partizans of Dividend. He ftill thought, as 
 before, that granting to Government, or divi- 
 ding among ourfelves, before the Company's 
 extra- debts were paid, and the difficulties at 
 home removed, was beginning at the wrong 
 end; but at the fame time maintained, that 
 the Proprietors were entitled to a preference. 
 Being examined as to the Eftimate, he ex- 
 plained the principles upon which it had been 
 formed, and affigned fome reafons for be- 
 lieving the receipts [c] were confiderably 
 over-rated. Counfel were moreover em- 
 ployed, to contend for the free difpofal of 
 private Property. Both Houfes of Parliament 
 notwithstanding thought it juft to reftrain; 
 and the Bill pafled. 
 
 Here let us paufe a moment, and take a 
 ihort view of the two plans above-mentioned. 
 As thefe are fuppoied to have been the pro- 
 ductions of the then two rivals in the Com- 
 pany, a compari.fon of their refpeclive merits 
 "may enable us to form a juft judgement of 
 
 [r] By the accounts afterwards produced, in January 1769, it 
 appears, that the rca! produce of our Tales actually fell fhort of 
 rhis EJHtnate the model ate fum of four hundred thouiand pounds. 
 
 2 the
 
 t 9 ] 
 
 the relative knowledge and abilities of thefc 
 Gentlemen. 
 
 Our right to the acquifitions made in Ben- 
 gal, together With the Northern Sircars, ha- 
 ving been queftioned in Parliament, and the 
 ableft Lawyers being divided in opinion con- 
 cerning it, fomc maintaining that thefe pof- 
 feffions were gained by conqueft, and con- 
 fequentlyvefted in the Crown j others, that they 
 were fuch an acquifition as our Charter enabled 
 us to make; it was by a General Court recom- 
 mended to our Diredors to treat with Admi- 
 niftration, of a mutual participation of thefe 
 revenues between the Company and the Pub- 
 lic. Thus empowered, it muft have occurred 
 to them, that the novelty of an attempt to 
 bring the revenues of one country annually 
 into another at the diftance of half the globe, 
 rendered the event uncertain : that therefore 
 it could not be fafe for the Proprietors to 
 engage to pay a fpecific fum, or even a cer- 
 tain proportion of the revenues, here In Eng- 
 land-, and to pay any thing abroad would bs 
 ufelefs to the Public. But though our claim * 
 to the revenues was problematical, our right 
 to an exclufive trade for feventeen years mure 
 was indifputable ; it is juft therefore, it. is 
 reafonable, that the Proprietors thould enjoy 
 the profits of this trade, Here another dir- /y 
 C ficulty
 
 r 10 ] 
 
 fkuky occurs ; to bring thefe fums to Europe* 
 our inveftments muft be increafed to an ex- 
 tent hitherto unthought of; and the natural 
 effects of fuch an increafe are the enhance- 
 ment of commodities in India, and the de- 
 creafe of the price at our fales, by glutting 
 the market; confequently a partial, perhaps 
 a total, lofs of the former profits of trade 
 will eniue. As, however, this lofs would be 
 occafioned by bringing home the revenues, 
 it appeared reafonable that it mould be made 
 good to the Proprietors out of that aggregate 
 i'um which fuch extraordinary inveftments 
 mould yield at our fales. The only danger 
 in thus blending the trade and revenues is, the 
 difficulty of adjufting accounts with Govern- 
 ment ; a difficulty which will vanifh upon 
 examination. 
 
 Impreffed, probably, with thefe fentiments, 
 the Directors produced the following propo- 
 fal, as the bafis of a negotiation. 
 
 i ft. That the Company's term in the ex- 
 clufive trade be prolonged for fifty years, from 
 the prefent time; for which the fum of 
 500,0007. is to be paid within the year. 
 
 2dly. All civil and military expences to be 
 paid out of the revenues abroad in the firft 
 inilance ; the accounts thereof to be annually 
 
 tranfmittcd
 
 tranfmitted from each Prefidency where they 
 iliall be incurred \d\. 
 
 An account of the whole produce of all 
 goods imported (which by Act of Parliament 
 are to be fold by public auction) is carefully 
 and correctly taken, at prefent, by the Offi- 
 cers of the Cuftcms, who attend at every 
 fale, in order to calculate the duties payable 
 to Government. From this grofs fbm (after 
 payment of duties) the Directors propofed to 
 make the following deductions ; 
 
 Prime coft of goods exported. 
 
 Intereft of bond debt. 
 
 Five per cent, for charges of different kinds. 
 
 Dividend of 400,0007. to the Proprietors. 
 
 Freight of mips. 
 
 Bills for coral, and remittances indulged 
 the fervants. 
 
 [/] It is evident, that upon this plan of the Directors, thefe 
 accounts are unneceffary, fmce the Public is to partake ot what 
 fiiail be afiuailj brought home ; but it ihould be underitood by 
 both parties, that all expences abroad are to be firft defrayed. It 
 is c:ju;i;iy the ixtercjl of the Company to bring home as much as 
 poflible ; tht Public, therefore, may lately rely upon the opera- 
 tion cf tjiis, hucrf.lt. 
 
 C s The
 
 The neat remainder, after thefe dedu&ions 
 made, to be equally divided between the Pub- 
 lic and the Company. 
 
 We have feen that the grofs produce (of 
 goods imported) at our fales is already in the 
 hands of the King's Officers : if the fums to 
 be deducted can be as eafily afcertained, 
 where is the difficulty of accounting with 
 Government ? 
 
 ift. Of the prime coft of gqods exported, 
 an account is annually delivered to the Lords of 
 the Treafury upon oath, figned by the Chair- 
 man and Deputy-Chairman for the time being. 
 
 2dly, 3dly, and 4thly. The intereft of 
 bonds, 5 per cent, for charges, and the divi- 
 dend, being certain proportions upon given 
 fums, it is unnecefiary to fay that thefe may 
 be eafily afcertained. 
 
 5thly, and 6thly. There remain then only 
 the two laft articles, freight of (hips and 
 bills of exchange: the one account may be 
 proved by the receipts of the (hips hu{bands ; 
 the other by the bills themfelves [H, and the 
 
 [f] All thefe articles were reduced to a certain ptr centagt upon 
 our iules, bv a fubiequeiu improvement upon this plan. 
 
 oath
 
 , 
 
 path of the Treafurer, or Cafhier, who pay$ 
 them. 
 
 It muft have been impoffible to fay what 
 part of the revenues can be brought to Eu- 
 rope, therefore no fpecifick proportion could 
 fafely be agreed upon with Government. The 
 profits of trade may be loft in part, or wholly 
 annihilated, by the increafe of inveftment, in 
 order to bring thefe revenues home ; there- 
 fore, from the whole produce of our fales 
 (of goods imported) a fum, equal to our 
 ufual profits, is given to the Proprietors, and 
 the nett remainder (being that additional in- 
 come which our revenues produce to our trea- 
 fury in Leadenhall-ftreet) is divided, the one 
 moiety to the Public, the other to await the 
 difpofal of the Proprietors, as independent of 
 Adminiftration as the produce of our fales at 
 prefent, after payment of duties. 
 
 A power of borrowing in added, if the 
 fame fhould be neceffary. 
 
 I have only to obferve, that in a country 
 loaded with an immenfe accumulation of 
 debt, the interefl; of the Exchequer muft of- 
 ten be oppofed to that of Commerce. Was it 
 neceffary, it would not be difficult to point 
 out inftances where the Company has loft 
 
 double
 
 t 14 ] 
 
 double what the Public has gained, by ta- 
 king off drawbacks [/]. This has been, 
 this muft be the cafe, in a country where ten 
 millions are annually raifed upon the iubjedt. 
 Surely then it was no inconfiderable advantage 
 (when our commerce muft be extended to 
 bring home our revenues) that this plan 
 makes it equally the intereft of the Public and 
 the Company to encourage and promote this 
 commerce. 
 
 Mr. Sulivan having this plan before him, 
 and having heard the objections thereto, pro- 
 mifed to produce one, in which the difficulty 
 of accounting mould be avoided. To un- 
 derftand his plan, it muft ever be remem- 
 bered, an univerfal opinion then prevailed, 
 that the revenues of Bengal amounted to fe- 
 ventcen hundred thoufand pounds, after all 
 civil and military expences defrayed, accorcj- 
 jng to an account tranfmitted from India. 
 
 [/] If a drawback (fupppfe 5 per cent] is not allowed, the 
 goods exported \vill produce 5 per cent, lefs at our lale. For, 
 a no map will give more at our fales than he can buy 
 for of the French and Dutch, the foreigner buying for ex- 
 portation fixes the price at the fale : confequently the Public 
 g;iins j f-er cent, upon the goods exported ; and the Compapy 
 l</ffj not only 5 pur cent, upon the goods exported, but likewile 
 5 fcr ant. upon tiioie con lamed at home. 
 
 Propo-
 
 Propofitions, to ferve as the Bafis of a 
 Negotiation with Government. 
 
 " i ft. That the Charter," i.e. the term 
 in the exclufive trade, " be extended fifty 
 " years from the prefent time. 
 
 (t 2dly. After payment of military expences, 
 c< he propofes to deduct 560,0007. from the 
 " revenues of Bengal, and the Northern Sir- 
 11 cars (or provinces of Golconda), for a di- 
 c vidend of 14 per cent, to the Proprie- 
 " tors [g] ; the refidue to be the property of 
 " Government, valued at 2s. id. the current 
 ' rupee, and to be paid fix months after the 
 " fale of the cargoes, in which the merchan- 
 tc dize purchafed therewith ihall have been 
 " invefted." 
 
 The firft obfervation that occurs is, how arc 
 the accounts of the military expences, and of 
 
 |y) It is remarkable, that Mr. Sulivan flood up at a General 
 Court, and defired, that after the words " 14 p:r cfut. to the 
 tc Proprietors" " for fifty year " might be inferted : and left this 
 fhould not be fufficiemly apprehended by thofe to whom it \va 
 *ddriTrd s he repeated his reqnelt at the next Court. 
 
 collection,
 
 i6 ] 
 
 collection, to be adjufted with Government ? 
 Who does not fee that, in this plan, it is 
 made the intereft of the Company to colled: 
 as little as poffible ? for the fmaller the fur- 
 plus to be inverted for the Public, the greater 
 will be their profit upon the trade, the lefs 
 their lofs upon the remittance. 
 
 Is the money of the Company, or of the 
 Public, to be firft inverted ? If the Compa- 
 ny's, then, as the increafe of inveftment will 
 dtftroy the profits of the trade> by enhancing 
 commodities abroad, and lowering the price 
 at home, will the agents of the Company 
 make a faithful collection of the revenues ? 
 Will they invert them when collected ? Or, 
 xvill the Directors put the goods, in which 
 fuch money (hall be inverted, up to fale, 
 when they do arrive, until the property of the 
 Company is fold ? >A fruitful fource of dif- 
 putes ! 
 
 Not only a minute infpection into our mi- 
 litary accounts and charges of collection mutt 
 be allowed at each Prefidency, for on this de- 
 pends the quantum of the Governments pro- 
 perty; but our private mercantile books muft 
 be laid open, to fee hoiy much of that property 
 is inverted, and in what goods, that " the bills 
 " may be drawn payable fix months after the 
 2 " fales
 
 [ '7 ] 
 
 " falcs of tbofe cargoes in which the mer- 
 " chandizes purchafed therewith /hall have 
 ; < been invefted" Should all the ftips arrive, 
 our books at home muft be infpefted : Let 
 us know what thefe goods are ? When fhall 
 they be fold ? Shall the Company difpofe 
 of theirs firft ? If there mould not be a 
 demand for the whole, even at any price, 
 whofe money mall remain locked up in the 
 warehoufe ? Will not this prove a conftant 
 fource of heart-burnings and jealoufies be- 
 tween the Company and the Public ? 
 
 The arrival of thefe goods will be very un- 
 certain in point of time; and, confequently, 
 it will be extremely difficult to adjuft the 
 payment of bills drawn in favour of the Chan- 
 cellor of the Exchequer, unlefs it is propofed 
 to difcharge thefe by the produce of fuch 
 goods as mould firft arrive, and to poftpone 
 every other payment, and by thefe means to put 
 the Company annually in a (tate of bankruptcy. 
 Here alfo it will be neceiTary for the Officers 
 of the Crown to fee what goods are fold, and 
 what they produce : the exports muft be de- 
 layed, and all bulinefs each year ftand ftill till 
 the whole amount is paid to the Public. But 
 if payment is to be made out of fuch goods 
 as mall arrive according to the refpedive 
 D concerns,
 
 [ iS ] 
 
 concerns, or .even after deducting fueh necef- 
 fary expences as are now immediately dif- 
 charged -, here is a plentiful harveft of intri- 
 cate accounts, difficulties, and difputes ! 
 
 The intereft of bond debt, freight of 
 fhips increafed probably to 600,000 /.; charges 
 at home of various kinds, amounting to 5 per 
 cent, upon the grofs fales not being men- 
 tioned -, are, I prefume, to be defrayed by 
 the iuppofed profits of Trade, which, mould 
 the whole revenue be inverted, would perhaps 
 totally be annihilated. Should the whole net 
 be inverted, may not Government have reafon 
 to complain ? 
 
 The prime-coft of goods exported, is like- 
 wife omitted - 3 the returns of which, together 
 with the necciTary provifion for bills indulged 
 the fervants abroad, mull coniiderably en- 
 hance this difficulty. 
 
 " 3dly and 4thly. To raife two million?, 
 by increaiing the capital to four millions. 
 ** Subscriptions lor 8oo,ooo/. to be taken in 
 4< at 250 per cent. Twelve hundred thoufand 
 " pounds are to difchargc the Company's 
 " debts, eight hundred thoufand to be given 
 - to Government."
 
 [ '.9 ] 
 
 It may be fairly doubted, how far an in- 
 creafe of capital, as an expedient for paying 
 debts, is proper, when our commerce muft be 
 engrofled by the carriage of the revenues. 
 An appropriation of whatever the Company 
 may from time to time accumulate to a gra- 
 dual difcharge of debts, will by many be 
 deemed preferable ; as the power of borrow- 
 ing would equally remain a refource in time 
 of need. 
 
 A declaration of 14 per cent, dividend for 
 fifty years, would raife the price of ftock to 
 400 per cent. And what would the buyer 
 gain ? What would there be to anfwer fix- 
 teen millions (the value of the increafed ca- 
 pital at 400 per cent.} ? Nothing, but what 
 the Company poflefs in their forts and ware- 
 houfes : for the two millions raifed, are dif- 
 pofed of in the 3d and 4th propofitions. 
 
 In (hort, we may venture to pronounce, 
 that Mr. Sulivan here built a Chalcedon, 
 though he had a Byzantium before his eyes. 
 
 In Feb. 1769, the agreement with Go- 
 vernment expired. After a long negotiation, 
 between the Directors and the Treafury, a 
 D 2 propofal
 
 [ 20 ] 
 
 propofal to renew this agreement (with fbme 
 additional articles refpecting the exportation 
 of manufactures; loan of furplus at 2 per 
 cent, to the State, GJV.) was ulhered into a 
 General Court of Proprietors, with a re- 
 commendation from our Court of Directors. 
 
 A gradatim increafe of dividend to 127 
 per Cent, being made part of this agreement, 
 with the, approbation of the Treafury, did 
 not fail to captivate the fpeculators in (lock, 
 and procure their moft zealous fupport. 
 
 Though many of the former Directors 
 were this year out by rotation, fome of the 
 old leaven 1HI1 remained in the houfe. Thefe, 
 confcious of tne fuperior advantages the Com- 
 pany might derive from the plan of the year 
 1767, had endeavoured to obviate thofe ob- 
 jections which had before been made to it. 
 Satisfied that this plan, in its original flate, 
 might have been executed upon a much more 
 iimple calculation than the duties to Go- 
 vernment are eftimated at prefent; but, defi- 
 rous to remove every {hadow of difficulty, 
 they reduced, by reference to former years, 
 every article to a certain per centage upon 
 the Company's grofs fales of the year; and 
 propofed, after deducting likewife a dividend 
 
 of
 
 of 127 to the Proprietors, to give two third* 
 of the remainder to the Public, one third to 
 be appropriated to the payment of the Com- 
 pany's debts. 
 
 This plan being rejected by the Lords of 
 the Treaiury, had the adventurers alfo its ene- 
 mies, to whom fome agreement was immedi- 
 ately necefTary. Neverthelefs, it was ftrenu- 
 oufiy fupported by the Deputy-Chairman, 
 with Mr. Rous, and others, without the bar. 
 They urged, that if the Company's abilities 
 were equal to the propofed engagements, 
 nothing would be loft to the Public by 
 adopting this plan : if not, Parliament would 
 certainly be fatisfied with lefs. That the Pro- 
 prietors would, at leaft, be fafe ; and the 
 Company mijght moreover derive many ad- 
 vantages from this mode of participation. 
 It is obvious, that a fyftem of revenue laws, 
 calculated for an exclufive monopoly, where 
 the price of the commodity is regulated at 
 will by the quantity brought to market, muft 
 be highly improper when our investments are 
 greatly extended from every quarter. Many 
 alterations will be neceilary; but thefe can 
 only be obtained by blending the interefl 
 of the Exchequer with our own. In the 
 prefent ftate of this country, loaded with 
 
 an
 
 [ 22 ] 
 
 an immenfe debt, Minifters will be extreme- 
 ly fearful of innovations in this tender ar- 
 ticle of revenue, unlefs fure of receiving 
 in one {hape, what is remitted in another. 
 Should this once be effected, by making the 
 ium paid to Government depend on the 
 produce of our fales, experiments will be 
 tried, every channel will be opened, to 
 bring home our wealth with the greateft ad- 
 vantage ; and, probably, a larger profit will, 
 in the end, accrue [/>], both to the Public and 
 the Company, than could poflibly be obtained 
 by any other means. 
 
 Such were the arguments ufed ; but little 
 Attended to. For, after fome previous de- 
 bates, a queftion was ftated on the propofal, 
 recommended by a majority of our Direc- 
 tors, and approved by the Lords of his Ma- 
 jefty's Treafury. It now became a battle of 
 accounts; in which, each man laboured to 
 prove the Company's abilities to be fuch, as 
 his arguments required. The ftipulated pay- 
 ments, however, appearing to be 31 per cent. 
 on our capital, or one million (lerling per 
 annum 9 a majority of forty votes declared 
 againft the queftion. 
 
 [Aj Vide Note, p. 8. 
 
 The
 
 The propofal was now foftened in feveral 
 obnoxious articles, and confirmed upon a 
 ballot by a much greater majority of Propri- 
 etors than had before condemned the former. 
 The Lords of the Treafury, obferving the 
 fluctuating opinion of the General Courts, 
 ventured to reject it. 
 
 The report was, at firft, received with ge- 
 neral indignation by the Proprietors ; and Mr. 
 Sulivan, whofe conduct had hitherto been 
 equivocal, now declared himfelf vehemently 
 againft all further negotiation with the Mi- 
 tt ifler. Neverthelefs, when repeated ad- 
 journments, artfully interpofed, had abated 
 the general refentment, the friends of the 
 firfl meafure ventured again to propofe it ; 
 and, having exhaufted the patience of their 
 opponents, and gained Mr. Sulivan to their 
 party, with difficulty, prevailed. 
 
 In the midft of thefe contefts, a propofi- 
 tion was offered, by Mr. Rous, which fome 
 thought would have been readily adopted by 
 all parties. He oblerved, that great dif- 
 ference of opinion had arifen, refpe&ing the 
 abilities of me Company : that to thole who 
 conceived them equal to all their propofed 
 
 engage- 
 
 354890
 
 engagements, and none other could fupport 
 the prefent plan, it muft be indifferent, whe- 
 ther the Public received their portion firfl 
 or laft ; whereas, by blending the two 
 plans together, perfect fatisfaction might be 
 given to thofe who entertained a con- 
 trary opinion. He therefore propofed, ac- 
 cording to the firft plan, that four hundred 
 thoufand pounds, or 12^ per cent, fiiould be 
 deducted from the clear produce of our fales 
 for the year, as a dividend to the Proprietors ; 
 and that four hundred thoufand pounds fhould 
 then be paid to the Public, if the remainder 
 was found fufficient for that purpofe. It was 
 added, by another gentleman, that the divi- 
 dend, being the criterion by which the price 
 of flock was in a great meafure regulated, 
 ought to be as fixed and certain as the nature 
 of a trading company ^will admit. If this, by 
 any accident, (bould be diminished, or even 
 danger apprehended (and every idle rumour 
 would produce this effect to a certain degree), 
 a proportional part of the capital will be in- 
 ffontiy annihilated : whereas, mould the Ex- 
 chequer fuffer, it could only be a partial lofs 
 of the annual fum. 
 
 Such were the negotiations: during which, 
 the integrity, knowledge, and abilities, of the 
 
 principal
 
 principal actors in the Company were brought 
 upon the public ftage ; and one may venture 
 to foretel the canfequences which will refult 
 from the conduct of each, without affecting 
 the gift of prophecy. 
 
 Mr. Sulivan, by his laft compliance, will 
 gain the fupport of Government ; and, pro- 
 bably, obtain a feat in the Direction. The 
 old Directors, from the fame caufes, together 
 with their oppofition to friends within doors, 
 and the difguft naturally thence arifing, will 
 rifque a defeat; but may, poffibly, as hap- 
 pened once before, rife again, ftronger from 
 their fall. As to the Speculators, they muft 
 be the dupes of their own folly ; and, on the 
 firft alarm from abroad, will fink under the 
 weight of their own engagements. 
 
 FINIS,
 
 UNIVERSITY OF CALIFORNIA LIBRARY 
 
 Los Angeles 
 This book is DUE on the last date stamped below. 
 
 ? 1962" 
 
 Form L9-32m-8,'58(5876s4)444 
 
 UNIVERSITY OF CALT1 
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