THE COMPANY'S EARLY PROCEEDINGS. 273 



of exciting emulation among the rest of the community. 

 In 1'683 the plan of a subscription for a new joint-stock 

 was taken into consideration by the king and council, 

 though without obtaining their sanction. After the revo- 

 lution the prevailing spirit of liberty rendered the zeal of 

 private adventurers still more active. The company, how- 

 ever, had still influence enough, in 1693, to procure from 

 the crown a charter for twenty-one years, which authorized 

 them to extend their capital from 756,000/., to 1,500,000/. 

 But the House of Commons the same year passed a vote 

 directly annulling this grant. That assembly was the 

 more confirmed in their hostility, when, having, instituted 

 an inquiry, they discovered that large sums had been 

 paid as bribes to the Duke of Leeds and other public offi- 

 cers. In 1698, a bill was brought into Parliament for 

 the establishment of another company. The principles of 

 commercial legislation, however, being yet in their infancy,. 

 this measure was not founded upon any sound or liberal 

 basis. It in no degree threw open the trade, but merely 

 transferred the monopoly from one body to another ; and a 

 direct injustice was committed by allowing the new asso- 

 ciation to commence their operation immediately ; their 

 predecessors being by their charter entitled to a notice of 

 three yeaTS before their exclusive trade should cease. Fin- 

 ally, — and this was the real source of their too ample priv- 

 ileges, — the new company agreed to advance to government 

 two millions sterling at eight per cent. ; a most preposterous 

 arrangement, whereby they deprived themselves of the capital 

 with which their trade ought to have been carried on. The 

 consequence was, that in their first voyage they were only 

 able to send out an investment of 1 78,000/., while their rivals, 

 for the same season, sent one of 525,000/. But the old com- 

 pany redoubled their efforts, conducted their affairs with in- 

 creased prudence and caution, and bv their great experience 

 proved themselves superior to their new competitors. The 

 most violent dissensions broke out in India between the rival 

 associations ; each representinor the other in the blackest 

 colours to the native powers, who were much disposed to 

 listen to the statements of both. Hence arose ah apprehen- 

 sion that the very existence of British trade in India was in 

 peril. It seemed necessary, by some means or other, to ter- 

 minate thin unprofitable conflict ; and, after suitable negotia- 



