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THREE:BOSTON "BOYS" DISGUISED AS INDIANS THROWING THE TEA CHESTS INTO THE HARBOUR. (See p. 210.)But matters had greatly changed at Calcutta before this. Maclean did not present the letter of resignation till October, 1776; but, in September of that year, Colonel Monson had died, and, the members in the Council being now equal, the Governor-General's casting vote restored to him his lost majority. Hastings was not the man to defer for a moment the exercise of his authority. He began instantly to overturn, in spite of their most violent efforts, the measures of Francis and friends. He dismissed Goordas from the chief authority in Oude, and reinstated his "dear friend, Nat Middleton," as he familiarly termed him. He revived his land revenue system, and was planning new and powerful alliances with native princes, especially with the Nabob of Oude, and the Nizam of the Deccan, not omitting to cast a glance at the power of the Sikhs, whose dangerous ascendency he already foresaw. In the midst of these and other grand plans for the augmentation of British power in India��plans afterwards carried out by others��he was suddenly astounded by the arrival of a packet in June, 1777, containing the news of his resignation, and of its acceptance by the Directors. He at once protested that it was invalid, as he had countermanded the resignation before its presentation; but General Clavering, as next in succession, at once claimed the office of Governor-General, and Francis, in Council, administered the oath to him. Clavering immediately demanded the keys of the fort and the treasury from Hastings; but that gentleman refused to admit his own resignation, much less Clavering's election to his post. Here, then, were two would-be Governor-Generals, as Europe had formerly seen two conflicting Popes. To end the difficulty, Hastings proposed that the decision of the question should be referred to the Supreme Court. It is wonderful that Clavering and Francis should have consented to this, seeing that Impey, Hastings' friend, and the judge of Nuncomar, was at the head of that Court; but it was done, and the Court decided in Hastings' favour. No sooner was Hastings thus secured, than he charged Clavering with having forfeited both his place in the Council, and his post as Commander-in-Chief of the Forces, by attempting to seize on the Governor-Generalship. Clavering and Francis were compelled to appeal once more to the Supreme Court, and this time, to his honour, Impey decided in favour of Clavering. Clavering, who had been deeply mortified by his defeat, died a few days after this occurred, in August, 1777. By this event the authority of Hastings in the government was sufficiently restored, notwithstanding that Wheler generally sided with Francis, for him to carry his own aims.

THREE:Mr. Vansittart introduced some financial measures which effected a material saving. He proposed a plan for reducing the interest of the Navy Five per Cents. to four per cent. Holders not signifying their dissent were to have one hundred and five pounds in a New Four per Cent. stock, and persons dissenting were to be paid off in numerical order. By this scheme an annual saving to the public of one million one hundred and forty thousand pounds would be effected; besides a further saving of upwards of ninety thousand pounds of annual charge, which would be gained by similar reduction of the Irish Five per Cents. The high prices of the public funds obviated all difficulty in the execution of this financial operation, and the holders of the Five per Cent. stock found it expedient to acquiesce in the Minister's terms. The dissentients were in number only one thousand seven hundred and seventy-eight, and the stock held by them amounted to two million six hundred and fifteen thousand nine hundred and seventy-eight pounds, not a fifteenth part of the Five per Cent. capital. Another operation related to what was called "The Dead Weight Annuity." The amount of military and naval pensions and civil supernumeraries was about five millions annually. Accordingly Mr. Vansittart brought forward an amended scheme for relieving the immediate pressure of this dead weight by extending it over a longer term of years than the natural lives of the annuitants. For this purpose an annuity of two million eight hundred thousand pounds was appropriated out of the existing revenue for forty-five years, invested in trustees for the discharge of the then payments, which for that year were estimated at four million nine hundred thousand pounds, subject to a yearly diminution by deaths. It was computed that, according to the ordinary duration of human life, the annuities for the lives of the then holders would be equal to the annuity of two million eight hundred thousand pounds for forty-five years. The trustees were therefore empowered to sell from time to time such portions of this annuity as would provide the funds required for the payment of the dead weight, according to a computation made of the amount which would probably be due in each year. The Bank of England became the contractor for a portion of the annuity. There was no novelty of principle in the project; it was only the old one of anticipating distant resources by throwing the burden of the existing generation on the next. It had the further disadvantage of incurring a useless expense for management; whereas the Sinking Fund, amounting at the time to about five millions, might have been applied to existing exigencies, and a real saving effected.