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In return for this favour, Clive obtained one of infinitely more importance. It was the transfer of the sole right of dominion throughout the provinces of Bengal, Orissa, and Bahar. All that vast territory was thus made the legal and valid property of the East India Company. The conveyance was ratified by public deed, which was delivered by the Great Mogul to Clive in presence of his court, the throne on which he was elevated during this most important ceremony being an English dining-table, covered with a showy cloth. And of this princewho was entirely their own puppetthe British still continued to style themselves the vassals, to strike his coins at their mint, and to bear his titles on their public seal! Clive saw the immense importance of maintaining the aspect of subjects to the highest native authority, and of avoiding alarming the minds of the native forces by an open assumption of proprietorship. By this single treaty, at the same time that he had freed the Company from all dependence on the heirs of Meer Jaffier, he derived the Company's title to those states from the supreme native power in India; and he could boast of having secured to his countrymen an annual revenue of two millions of money. Thus began a system which has played a leading part in our Indian history.
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[See larger version]Although announced with the Budget, the proposed change in the sugar duties formed a separate and more momentous question. At that time, strictly foreign sugar was virtually prohibited by the excessive differential dutiesBritish plantation sugar paying a duty of 25s. 3d. per cwt., foreign, of 66s. 2d. When the Whig Administration had proposed to diminish this enormous difference, the Tories had pleaded the injustice to the West India landlords of taking away their slaves, and then exposing them to competition with countries still possessing slave labour. The question had thus become one of party. The Whigs were pledged to consult the interests of the British consumer; the Tories to protect the West Indies; and beating the Whigs on this very point, the Tories had turned them out of office. The British consumer had, however, happily some voice in the elections, and the problem was now to conciliate him without a glaring breach of consistency. Accordingly, the tax on our colonial sugar was to be left untouched, as was the tax on foreign sugar, the growth of slave countries; but henceforth it was proposed that the duty on foreign sugar, the produce of free labour, should pay only 10s. more than colonial. Thus was the first great blow struck at the protective sugar duties, and at that West Indian party which had so long prevailed in Parliament over the interests of the people. But the battle had yet to be fought.Before another attempt was made to open the portals of the Legislature the question was brought to a practical issue by an event similar to the Clare election, by which O'Connell forced on the decision with regard to Catholic Emancipation. The City of London had returned Baron Rothschild as one of its members; and at the morning sitting on the 26th of July, 1850, he presented himself at the table to take the oaths. When the clerk presented the New Testament, he said, "I desire to be sworn on the Old Testament." Sir Robert Inglis, in a voice tremulous with emotion, exclaimed"I protest against that." The Speaker then ordered Baron Rothschild to withdraw. An animated debate followed as to whether the Baron could be sworn in that way, although he declared that that was the form of oath most binding upon his conscience. He presented himself a second time, when there was another long debate. Ultimately, on the 6th of August, to which the matter was adjourned, the Attorney-General moved two resolutionsfirst, that Baron Rothschild was not entitled to vote in the House till he took the oath in the form prescribed by law; and, second, that the House would take the earliest opportunity in the next Session to consider the oath of abjuration, with a view to the relief of the Jews. These resolutions were carriedthe first, by a majority of 92 to 66; the second, by 142 to 106.Some of the most eminent land-owners were clear-sighted and disinterested enough to oppose these views with all their power. The Dukes of Buckinghamshire and Devonshire, the Lords Carlisle, Spencer, Grey, Grenville, Wellesley, and many members of the Commons, voted and protested energetically against them; and the additional restrictions were not carried. But enough had been done to originate the most frightful[120] sufferings and convulsions. We shall see these agitations every remaining year of this reign. The Prince Regent, in his opening speech, in 1816, declared "manufactures and commerce to be in a flourishing condition." But Mr. Brougham at once exposed this fallacy. He admitted that there had been an active manufacturing and an unusual amount of exportation in expectation of the ports of the world being thrown open by the peace; but he declared that the people of the Continent were too much exhausted by the war to be able to purchase, and that the bulk of these exported goods would have to be sold at a ruinous reductionat almost nominal prices; and then would immediately follow a stoppage of mills, a vast population thrown out of employment, and bread and all provisions made exorbitantly dear when there was the least power to purchase. All this was speedily realised. British goods were soon selling in Holland and the north of Europe for less than their cost price in London and Manchester. Abundant harvests defeated in some degree the expectations of the agriculturists, and thus both farmers and manufacturers were ruined together; for, the check being given to commerce, the manufacturing population could purchase at no price, and, in spite of the harvest, the price of wheat was still one hundred and three shillings per quarter. Many farmers, as well as manufacturers, failed; country banks were broken, and paper-money was reduced in value twenty-five per cent.; and a circumstance greatly augmenting the public distress was the reduction of its issues by the Bank of England from thirty-one millions to twenty-six millions.In the midst of these secret correspondences the queen was seized at Windsor with a serious illness, and, considering the general state of her health, it was most threatening. The hopes of the Jacobites rose wonderfully; the Funds went rapidly down; there was a great run upon the Bank, and the Directors were filled with consternation by a report of an armament being ready in the ports of France to bring over the Pretender at the first news of Anne's decease.[15] They sent to the Lord Treasurer to inform him of the danger which menaced the public credit. The whole of London was in excitement, from a report that the queen was actually dead. The Whigs did not conceal their joy, but were hurrying to and fro, and meeting in large numbers at the Earl of Wharton's. The Lord Treasurer, to keep down the public alarm, remained in town, and contented himself with sending expresses to obtain constant news of the queen's state, for his hurrying to Windsor would have had an inconceivable effect. He, therefore, let himself be seen publicly where he could be questioned regarding the condition of the queen, and gave assurances that she was better. To allay the panic, Anne was induced to sign a letter prepared for her, announcing to Sir Samuel Stancer, the Lord Mayor, that she was now recovering, and would be in town and open Parliament on the 16th of February. This news being confirmed, those who had been too hasty in pulling off their masks found some awkwardness in fitting them on again. The Press was active. Steele published a pamphlet called "The Crisis," in advocacy of the Revolution, and on the danger of a Popish succession; whilst on the other hand came out a reply, supposed to be written by Swift, not without a few touches from Bolingbroke; it was styled "The Public Spirit of the Whigs," and was distinguished by all the sarcasm of the authors. The queen's recovery, and the fact that the French armament was a fiction, quieted the storm and again restored the Funds.
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