haracter of trader
and the character of sovereign. Between the trader and the sovereign
there was a long and complicated account, almost every item of which
furnished matter for litigation. While the monopoly continued, indeed,
litigation was averted. The effect of the monopoly was, to satisfy the
claims both of commerce and of territory, at the expense of a third
party, the English people: to secure at once funds for the dividend of
the stockholder and funds for the government of the Indian Empire, by
means of a heavy tax on the tea consumed in this country. But, when the
third party would no longer bear this charge, all the great financial
questions which had, at the cost of that third party, been kept in
abeyance, were opened in an instant. The connection between the Company
in its mercantile capacity, and the same Company in its political
capacity, was dissolved. Even if the Company were permitted, as has been
suggested, to govern India, and at the same time to trade with China,
no advances would be made from the profits of its Chinese trade for
the support of its Indian government. It was in consideration of the
exclusive privilege that the Company had hitherto been required to make
those advances; it was by the exclusive privilege that the Company had
been enabled to make them. When that privilege was taken away, it would
be unreasonable in the legislature to impose such an obligation, and
impossible for the Company to fulfil it. The whole system of loans from
commerce to territory, and repayments from territory to commerce, must
cease. Each party must rest altogether on its own resources. It was
therefore absolutely necessary to ascertain what resources each party
possessed, to bring the long and intricate account between them to a
close, and to assign to each a fair portion of assets and liabilities.
There was vast property. How much of that property was applicable to
purposes of state? How much was applicable to a dividend? There were
debts to the amount of many millions. Which of these were the debts of
the government that ruled at Calcutta? Which of the great mercantile
house that bought tea at Canton? Were the creditors to look to the
land revenues of India for their money? Or, were they entitled to put
executions into the warehouses behind Bishopsgate Street?

There were two ways of settling these questions--adjudication and
compromise. The difficulties of adjudication were great; I think
insuperable. Whate