and correspondence, and the state of their revenues
in Bengal, Bahar, and Orissa; but the whole affair was so complicated,
that the ministers could not make themselves thoroughly masters of
the subject. Not one would, in fact, undertake the management of the
business. They shifted the proposals from one to another, and could not
come to any determination what to accept or what to reject. At every
stage of the business it was attended with violent debates. Townshend
was strongly in favour of an amicable arrangement with the company,
laying great stress on the _quantum_ to be given for the prolongation of
the term of their charter, while Company declared that the salvation
of the country depended upon the proper adjustment of this nice affair.
Still Chatham kept aloof from the business, and he either would not from
illness, or could not from despondency, give his thoughts and directions
in writing as to what steps to take and what further motion to make. In
the end, therefore, after many divisions, a bill was framed, granting
nearly all that was asked for by the company, and binding it to pay
L400,000 per annum, in half-yearly payments, and to indemnify the
exchequer, should any loss be sustained in consequence of lower-ing
the inland duties on tea, and the allowance of the drawback on its
exportation. But the term of this contract was limited to two years;
commencing from the 1st of February of the current year; so that the
company had a further interference with their territories and wealth in
prospect: but till the expiration of that term, their territorial rights
were fully admitted.

While this subject was under parliamentary discussion, the proprietors
of East India stock demanded of the court, that, as the company had
gained so much territory and so many new advantages, a larger dividend
should be declared. In compliance with this demand the dividends were
increased from ten to twelve and a half per cent., which step called for
the interference of government. In order to check a proceeding which was
considered calculated to renew the gambling stock and share jobbing of
the memorable South Sea year, two bills were brought into the house by
ministers; one for regulating the qualifications of voters in trading
companies, and the other for restraining and limiting the making of
dividends by the company; fixing them at ten per cent. This latter bill
encountered a most violent opposition both by the company and in the
h