irectors. After a sharp contest, in which large sums were
spent, the proprietors put his party in power. He was invested with full
authority as commander-in-chief and governor of Bengal to act in
conjunction with a select committee.

He landed in India in May, 1765. During his administration of about
eighteen months he secured for the company the virtual sovereignty over
its conquests without dispossessing the nominal rulers, and he took
measures for the reformation of the company's service. Averse from a
forward policy of conquest, he restored Oudh to the nawab wazir on
payment of L500,000. Allahabad and Kora were assigned to the emperor,
together with a tribute from Bengal, and in return Shah Alam granted to
the company the right of levying and administering the revenues of
Bengal, Behar, and Orissa, together with jurisdiction in the Northern
Circars. The nawab of Bengal received an annual pension of L600,000, and
surrendered all his power to the company, except the right of criminal
jurisdiction. Clive reorganised the army, and stopped the double
_batta_, or allowance, granted by Mir Jafar after the battle of Plassey.
He forbade illicit trade and the receipt of presents, and secured the
company's servants increased salaries. These reforms were effected in
the face of violent opposition, both in civil and military quarters. Two
hundred officers conspired to resign their commissions on the same day.
Clive faced the mutiny successfully; he cashiered the leaders and
accepted the submission of the younger men. Ill-health obliged him to
return to England in January, 1767.

[Sidenote: _AFFAIRS OF THE EAST INDIA COMPANY._]

The enormous private fortunes made in India led people to believe that
the company was far richer than it really was. During the late wars the
dividend was 6 per cent. In 1766 the proprietors urged an increase. To
this the directors objected that the debts of the company were heavy,
and that a premature increase would raise the price of stock to a point
at which it could not be maintained, and might end in a disaster like
that of the South Sea Company. The ministers sent a message of warning,
announcing that the affairs of the company would probably be considered
in parliament. They concerned the public, for the company enjoyed
protection and privileges granted by the nation. Nevertheless the
proprietors carried their point, and a dividend of 10 per cent. was
declared. Chatham held that the time had com