considerable difficulty would arise in the renewal of the charter. He would admit, that the Chinese were a capricious, despotic, and arbitrary people; but it was because he felt this, that he was induced, amongst other reasons, to recommend the withdrawal of the monopoly from the company. Circumstances might arise which would make a chartered company the worst medium for continuing our commercial intercourse with such a people. The company had no political power as far as related to China. The power which they did exercise arose out of their great influence as a commercial body, but still it was of an ambiguous and equivocal character. Sometimes their influence was exercised with success in carrying particular objects, but, at others, they were obliged to confess, that they had no control over the acts of their fellow-subjects. This would have the worst effects in many cases where questions of a political nature might arise. Another effect of throwing open the trade would be, that it would tend to destroy the monopoly of the Hong merchants. Up to about the middle of the last century there were no Hong merchants, at least there was no monopoly of the trade with the company by that body. The first attempt at the formation of a company, with a monopoly of the trade, was in 1713. As a shrewd and intelligent people they saw the advantage of the union of a wealthy body of men for carrying on trade; they, therefore, attempted to form themselves into a company, with the monopoly of the trade with the British company. The East-India Company warmly opposed the attempt for five or six years, and, at last, the matter was dropped. The attempt

was again renewed about the year 1760, and was successful. Since that time the Hong merchants retained the monopoly, but there was little doubt that when the English trade should be thrown open, it would have the effect of putting an end to the Hong monopoly also. Another great objection to the continuance of the company's monopoly was, that at the present moment there were two great and independent bodies engaged in the China trade-one was the company itself, and the other was the great body of private traders. These last had, within a few years, sprung up from the owners of a small trade to be the successful competitors of the company itself. The progress they had made in this respect would be judged from the fact, that, in the year 1814, their tonnage amounted to 1,000 tons, but, in 1829, it had risen to 60,000 tons. In the same period the trade of the company had fallen off. In the year 1813-14, the value of the exports and imports of the company to and from China, amounted to 13,500,000%. In the year 1829-30, they had fallen to 11,600,000l. The great increase in the amount of the private trade in the same period was still more remarkable. In the year 1814, it was 9,000,000l. In the year 1829-30, it had increased to 31,000,000l. Now, to him it appeared certain, that against the competition of such a body of private traders, the monopoly of the company could not long continue, even if parliament did not interfere.

As, however, on the opening of the trade with China, there would always be a vast number of English resident there, it would be necessary that the functionary or func

tionaries that should represent this country there, should be armed with great and extensive powers. It would be next to madness to make the change that was proposed, without giving almost unlimited powers to the persons that should represent us there. He would, therefore, propose, in the bill which he should have to submit to the House on this subject, that his Majesty should be empowered to issue a commission to such persons as he should think fit, arming them with such powers as he might deem proper for the purpose of managing the concerns and taking care of the British interests in Canton. If those commissioners were men of discretion, and if they acted with prudence and with delicacy, in the course of time it would not be impossible to conciliate the Chinese authorities at Canton, and, perhaps, to remove that barrier which at present stood in the way of our general commercial intercourse with that country. The trade of the East-India Company to China, with the exclusive privileges appertaining to it, would thus cease in April, 1834, and the trade would then be open to all the merchants of this country. As the warehouses of the Company contained tea equal to two years' consumption from April, or even June, 1834, the Company would not send out any more ships than those which were at present under orders for China. With regard to the duty under which tea should be admitted when the trade was opened, an ad valorem duty had some advantages; but one disadvantageous effect of it was to augment to an undue extent the price of the article on which it was laid; and another disadvantageous effect of it, in a commercial

point of view, would be, that it not only would be injurious to the trade, but would very much narrow the consumption. On the other hand, a rated duty, which was in every other respect preferable to an ad valorem duty, had this peculiar disadvantage-that unless proper precautions were taken, it would press unequally and unjustly upon the lowest class of the consumers. As the subject

was surrounded with difficulties on all sides, it seemed to his Majesty's ministers that, to propose a classification of teas, and to impose on each separate class a different rated duty, was the best mode of proceeding to adopt. Such had been the course adopted in the United States before the duty on tea had been taken off, and the concurrent testimony of all who had been examined as to its effects, showed that it operated in no way to diminish the revenue, while it had not an injurious effect upon the consumption. Another question which related to the basis on which the trade to China should be established, was, whether tea should be allowed to be brought from other parts of the world, as well as from those from which it was at present imported by the East-India Company. He thought that the present limits to which the trade of the East-India Company was confined were extremely wide, embracing, as they did, the whole of the coast, from the Cape of Good Hope to China. Besides dealing in tea, the East-India Company was at present an importer to a large extent of raw silk. They kept up a large establishment of finishers of silk in India for that purpose, and the importation of that silk was obviously of great importance to the manufacturers

of this country. Now, when the trading of the Company was to be put an end to, it would be most unwise that this supply of silk should be suddenly stopped, and it would be most unjust towards those finishers that they should be thus at once thrown out of employment. He therefore intended to propose, that the Company should be still allowed to employ them, while it would be the duty of the Government of India to seek out capitalists into whose hands the trade should be thrown, so that the employment of those finishers should always be continued, and the supply of silk, which was so important to our manufactures, should never fail. In point of fact, the supply of silk would only be continued with the Company until proper parties could be found in whose hands it could be placed.

Another part of this question regarded the species of compromise proposed by the Government, and acceded to by the Company. It was this that on the East-India Company's surrendering all its rights and privileges, the Government of India should be continued in the hands of the Company for the period of twenty years, that their commercial privileges as a trading company should cease; and that, in consideration of their giving up those privileges, an annuity should be granted to them, to be charged on the territory of India, and being 630,000l. a-year, the amount of the dividends which the proprietors at present received. It was proposed, that the guarantee fund should amount to 2,000,0001. for securing the payment of the annuity, as well as for paying off finally the capital stock of the Company; and that the annuity should be paid for a term of forty

years, at the close of which period it should be at the option of Parliament, giving three years' notice, to redeem it at the rate of 1007. for every 51. 5s. of annuity. It was proposed, that the East-India Company should retain the political administration of India for a period of twenty years, at the end of which period they might, if deprived of the government of India, demand the payment of their capital; but if, at that period they did not demand it, then the payment of the annuity was to be continued for forty years. No part of the security for the payment of the proposed annuity was to be dependent upon the revenue of this country; it was to be totally independent of the finances of this country, and to be altogether secured upon the territorial revenue of India. This arrangement was an adviseable one for the Company, as they would receive an annuity equal to the amount of their present dividends for a term of forty years, at the end of which period they would receive the full amount of their capital. On the other hand it was a fair compromise as regarded the territorial possessions in India. There would be no increase made to the debt of India, by the payment of this annuity of 630,000l., or by the payment of the 12,000,000l., which it was proposed to make good to the Company at the end of the term of forty years, as the payment was provided for, so as to occasion no increase of that debt-by the purchase of a portion of the redeemable debt of India, upon terms that would be advantageous to the holders of that debt. It was a great advantage, besides, to them, to have that debt legally recognized, as it was under this plan, and secured

in the territory of India. The revenue of India, on the increase of which there was every reason to calculate, would be amply sufficient to discharge the amount thus guaranteed. It appeared from the evidence given before the East India Finance Committee that, in 1828-29, the revenue of India amounted to about 22,000,000l., while its debt was 40,000,000l., which was only two years' revenue of the country. He had no doubt, that the revenue would increase, and that this very arrangement would tend to increase it.

Certain alterations were likewise to be introduced in the frame of the Government of India. It was intended that, in future, instead of three, there should be four presidencies. The Government of India at present included the three presidencies of Bengal, Madras, and Bombay. A very strong opinion had been expressed by all persons acquainted with India, that in consequence of the great change of circumstances which had occurred with respect to Bengal, by the ad. dition of an extensive territory in the west, peopled by an unsettled and warlike race, it would be advisable to form those western dis

tricts into a new territory. It was true the general government legally possessed a control of the subordinate states, but this control could not be efficiently employed in districts so distant as the newly added western states of the Bengal presidency. It was proposed, that these subordinate governments should be altered in two respects, namely, in a reduction of the council, and in a total deprivation of our forms of law. He was quite aware, that many difficulties would occur in effecting this change; but these might,

in a great measure, be overcome by an assimilation of the modes of administering the laws in the different local judicatures. He would place the law on this high and general ground,-that no distinction whatever should be made in its administration between natives and Europeans. This would be one step towards the ultimate identification of the two classes. But this conclusion could not be expected to be very immediate, nor effected, indeed, without considerable delay. He would propose, however, to strengthen the legislative power of the general government, by adding four to the council of each presidency, whose deliberations on points of law should be assisted by the addition of one or two practising barristers or judges. Perhaps a gradual assimilation of the law might be greatly effected by directing the exertions of the presidencies to that object. No European, after the passing of the proposed measure, would enjoy any privileges beyond those enjoyed by the natives, but would be placed under the same laws, and subject to the same punishments with them. was proposed as an indispensable condition, and for the purpose of effecting that complete identification of the two classes which was so much to be desired. It was also his intention to propose, that no native of India should be prevented from holding offices or employments under the Government, on the grounds either of his colour, birth, or religion.

This

He should further have to call the attention of the House to the state of the ecclesiastical establishments of India. The alterations would not be expensive or extravagant; yet he hoped they would be found suffi

cient to remedy existing evils-he alluded to the necessity of rescuing the single bishop of India from the whole burthen of the ecclesiastical duties which it at present fell to his lot to discharge, and for this purpose he should propose to add the archdeacons of Madras and Bengal, as suffragan bishops in India. Mr. Grant moved, in conclusion, the following resolutions:

"1. That it is expedient that all his Majesty's subjects should be at liberty to repair to the ports of the empire of China, and to trade in tea, and in all other productions of the said empire, subject to such regulations as Parliament shall enact for the protection of the commercial and political interests of this country.

"2. That it is expedient, that in case the East-India Company shall transfer to the Crown, on behalf of the Indian territory, all assets and claims of every description belonging to the said Company, the Crown, on behalf of the Indian territory, shall take on itself all the obligations of the said Company, of whatever description, and that the said Company shall receive from the revenues of the said territory such a sum, and paid in such a manner, and under such regulations, as Parliament shall

enact.

"3. That it is expedient that the government of the British possessions in India be intrusted to the said Company, under such conditions and regulations as Parliament shall enact, for the purpose of extending the commerce of this country, and of securing the good government and promoting the moral and religious improvement of the people of India.'

The resolutions having been agreed to without any opposition,

as they did not bind the House to any details, were carried up for the concurrence of the House of Lords. On the 5th of July, their Lordships agreed to the resolutions without a division, Lord Ellenbo rough having declared himself hostile to the whole scheme, as being a crude, ill-digested plan, the offspring of unfounded theories, formed by men who knew nothing, and would know nothing, of India. He did not object to the opening of the trade with China, though he was not convinced, that the change would be accompanied by the advantages which the people of this country anticipated. He agreed, too, that it would be possible to carry on the government of India without extraneous assistance; but the statements of surplus of revenue which had been given, were inconsistent with the estimates both of the Board of Control, and of the East-India Company. Nothing but the most minute attention, on the part of the home authorities, to the minutest matters connected with the administration of India, would enable that country to carry on its Government by means of its own resources. The proposed measure would produce a mischievous change in the elements of the court of Directors, and place the Court itself in a most unfavourable position towards India. Hitherto the Court of Directors had appeared in India as beneficent conquerors; henceforth they would be mortgagees in possession. One of the proposed alterations was, to do away with the councils of governors in India. He was well aware that those councils were productive of delay and of difficulty, but their removal would constitute the Government of India an absolute government, instead of being a go