but never with the same success as before, 
the Russians being now well accustomed to 
[he Dutch merchants and merchandize. 
This company subsists still, under the di- 
rection ot a governor, four consuls, and as- 
sistants; and by the 10th and 11th of Wil- 
iam HI. c. 6. the line for admission was re- 
duced to 51 . 
3. The Eastland company was incorporated 
by queen Elizabeth, its charter is dated in 
the year 1579. By the lirst article the com- 
pany is erected into a body politic, under 
Re title of the company of merchants of the 
East; to consist of Englishmen, all real mer- 
chants, who have exercised the business there- 
of, and trafficked thro’ the Sound, before the 
year 1568, into Norway, Sweden, Poland, 
Livonia, Prussia, Pomerania, &c. excepting 
Narva, Muscovy, and its dependancies. 
Most of the remaining articles grant them the 
usual prerogatives of such companies; as a 
seal, governor, courts, laws, &c. 
4. The Turkey or Levant company had its 
rise under queen Elizabeth, in 1581. James J. 
confirmed its charter in 1605, adding new pri- 
vileges. During the civil wars, there hap- 
pened some innovations in the government of 
the company ; many having been admitted 
members, not qualified by the charters of 
queen Elizabeth and king James, or that did 
not conform to the regulations prescribed. 
Charles II. on his restoration endeavoured to 
set it upon its antient basis ; to which end, he 
gave tnem a charter containing not only a 
confirmation of their old one, but also several 
new articles of reformation. ' By this the 
■company is erected into a body-politic, ca- 
pable of making laws, &c, under the title of 
the company of merchants of England trading 
to the seas of the Levant. The number of 
niembers is not limited, but is ordinarily about 
Three hundred. The principal qualification 
required is, that the candidate be a freeman 
of London, and a wholesale merchant either 
by family or serving an apprenticeship of 
seven years. 
5. ’The company of merchants trading to 
Africa, established in 1750. Contrary to the 
former practice with regard to regulated 
companies, who were reckoned unfit for 
such sort of service, this company was sub- 
jected to the obligation of maintaining forts 
and garrisons. It was expressly charged at 
•first with the maintenance of all thfc British 
forts and garrisons that lie between Cape 
Blanc and the Cape of Good Hope; and af- 
terwards that of those only which lie between 
Cape Rouge and the Cape of Good Hope. 
The act which establishes this company (the 
23d of Geo. II. c. 31) seems to have had two 
distinct objects in view ; first, to restrain ef- 
fectually the oppressive and monopolizing 
spirit which is natural to the directors of a 
regulated company ; and, secondly, to force 
them as. much as possible to give an attention, 
which is not natural to them, towards the 
maintenance of forts and garrisons. 
For the first of these purposes, the fine for 
admission is limited to forty shillings. The 
company is prohibited from trading in their 
corporate capacity, or upon a joint stock; 
from borrowing money upon a common seal ; 
or from laying any restraints upon the trade, 
■\yhich may be carried on freely from all 
places, and by all persons, being British sub- 
jects, and paying the fine. The government 
.is in a committee of nine persons, who meet 
11 
COMPANY. 
in London, but who are chosen annually by 
the freemen of the company at London, 
Bristol, and Lu c-rpool ; three from each 
place. No committee-man can be continued 
m office for more than three years together. 
Any committee-man might formerly be re- 
moved by the board of trade and plantations ; 
now by a committee of council, after being 
heard in his defence. The committee are for- 
bidden to export negroes from Africa, or to 
import any African goods into Great Britain. 
But as they are charged with the maintenance 
of forts and garrisons, they may for that pur- 
pose export from Great Britain to Africa 
goods and stores of different kinds. Out of 
the money which they shall receive from the 
company, they are allowed a sum not ex- 
ceeding eight hundred pounds for the salaries 
of their clerks and agents at London, Bristol, 
and Liverpool ; the house-rent of their of- 
fice in London ; and all other expences of 
management, commission, and agency, in 
England. What remains of this sum, after 
defray ing those different expences, they may 
divide among themselves, as a compensation 
for their trouble, in what manner they think 
proper. 
lor the second purpose mentioned, the 
maintenance of the forts and garrisons, an an- 
nual sum has been allotted to them by par- 
liament, generally about 13,000/. For the 
proper application of this sum, the committee 
is obliged to account annually to the cursitor 
baron of the exchequer; which account is 
afterwards to be laid before parliament. But 
it is said great abuses have, notwithstanding, 
subsisted with regard to this part of the com- 
pany’s engagements. 
if. Joint-stock companies, established ei- 
ther bv royal charter, or by act of parlia- 
ment, differ in several respects, not only 
from regulated companies, but from private 
copartneries. 1 . In a private copartnery no 
partner, without the consent of the company, 
can transfer his share to another person, or 
introduce a new member into the company ; 
each member however may, upon proper 
warning, withdraw from the copartnery, and 
demand payment from them of his share of 
the common stock. In a joint-stock compa- 
ny, on the contrary, no member can de- 
mand payment of his share from the compa- 
ny; but each member can, without their 
consent, transfer his share to another person, 
and thereby introduce a new member. The 
value of a share in a joint stock is always the 
price which it will bring in the market ; and 
this may be either greater or less, in any pro- 
portion, than the sum which its owner stands 
credited for in the stock of the company. 2. 
In a private copartnery each partner is bound 
for the debts contracted by the company to 
the whole extent of his fortune. In a joint- 
stock company, on the contrary, each partner 
is bound only to the extent of his share. 
The trade of a joint-stock company is al- 
ways managed by a court of directors. This 
court indeed is frequently subject, in many re- 
spects, to the controul of a general court of 
proprietors. But the greater part of these 
proprietors seldom pretend to understand 
any thing of the business of the company, 
and give themselves no trouble about it, but 
receive contentedly such half-yearly or year- 
ly dividend as the directors think proper to 
make to them. This total exemption from 
trouble and risk, beyond a limited sum, en- 
407 
courages many people to become adventur-- 
ers in joint-stock companies, who would upon 
no account hazard their fortunes in any pri- 
vate copartnery. Such companies, there- 
fore, commonly draw to themselves much 
greater stocks than any private copartnery, 
can boast of. The principal joint-stock com- 
panies at present subsisting in Great Britain 
are, the South Sea and the East India com- 
panies ; to which may be added, though of 
very inferior magnitude, the Hudson’s-bay 
company. 
1. T he South Sea company. During the 
long war with France in live reign of queen 
Anne, the payment of the sailors of the royal 
navy being neglected, they received tickets 
instead of money, and were frequently obli- 
ged by their necessities to sell these tickets to 
avaricious men at a discount of 40 and some- 
times 50 per cent. By this and other means 
the debts of the nation unprovided for by par- 
liament, and which amounted to 9,471,321/. 
fell into the hands of these usurers : on 
which Mr. Harley, at that time chancellor of 
the exchequer, and afterwards earl of Ox- 
ford, proposed a scheme to allow the pro- 
prietors of these debts and deficiencies 6 per 
cent, per annum, and to incorporate them 
for the purpose of carrying on a trade to the 
South Sea ; and they were accordingly incor- 
porated under the title of “ the governor 
and company of merchants of Great Britain 
trading to the South Seas, and other parts of 
America, and for encouraging the fishery/’ 
&c. 
Some other sums were lent to the govern- 
ment in the reign of queen Anne at 6 per 
cent. In the third of George I. the. interest 
of the whole was reduced to 5 per cent, and 
the company advanced two millions more to. 
the government at the same interest. By the 
statute of the 6th of George I. it was declar- 
ed, that they might redeem all or any of the 
redeemable national debts; in consideration 
of which the company were empowered to 
augment their capital according to the sums 
they should discharge ; and for enabling thejiv . 
to raise such sums for purchasing annuities, 
exchanging for ready money new exchequer- 
bills, carrying on their trade, &c. they might, 
by such means as they should thipk proper, - 
raise such sums of money as in a general 
court of the company should be judged ne- 
cessary. The company were also empow- 
ered to raise money on contracts, bonds, 
or obligations, under their common seal, on 
the credit of their capital stock. But if the 
sub-governor, deputy -governor, or other 
members of the company, should purchase 
lands or revenues of the crown upon account 
of the corporation, or lend money by loan or 
anticipation on any branch of the revenue,. . 
other than such part only on which a credit 
of loan was granted by parliament, such sub- 
governor, or other memlrr of the company, 
should forfeit treble the value of the money 
so lent. The fatal South Sea scheme, trans- 
acted in the year 1720, and the particulars 
of which are very generally known, was exe- 
cuted upon the last-mentioned statute. 
T he South Sea company never had any 
forts or garrisons to maintain, and therefore 
were entirely exempted from one great ex- 
pence, to which other joint-stock companies 
for foreign trade are subject. But they had 
an immense capital divided among an im- 
mense number of proprietors. It was natu- 
