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 miles above its mouth, and within a short distance of the estuary of the Hooghly, had a very indifferent harbour, but possessed the important advantage of giving immediate access to a country of almost inexhaustible resources, with an immense industrial population, from whom an indefinite supply of the fine white cloths suited equally for the English, the Persian, and the south-eastern markets, might at all times be obtained. The prospect of a revival of trade seemed in consequence so promising, that new efforts were made ; and Bantam, with the view of being again made a central emporium between the Indian peninsula and the Spice Islands, was once more restored to the dignity of a presidency. In the midst of this apparent success, an event took place by which the very existence of the Company was threatened.

CHAPTER III.

Truce with the Portuguese— Establishment of a rival company — Settlement with the Dutch— State of the Company under Cromwell.

S the contests carried on between the Company and the Portu- guese had long been productive only of mischief to both, a mutual desire for arrangement was felt. While they were wast- ing their strength the Dutch were continuing their successful career, and threatening to involve them in a common ruin. In these circumstances little difficulty was found in opening a friendly commmii- cation with the Viceroy of Goa, and forming a truce which, if approved by their sovereigns, might afterwards be converted into a permanent treaty. Under this truce, which gave each of the contracting parties free access, for all com- mercial purposes, to the ports and factories of the other, the Company naturally anticipated a large extension of traffic, and had begun to make the necessary preparations with that view, when they were startled by the information that King Charles had granted license to a new body of mercantile adventurers, for the special purpose of appropriating the advantages which the tnice was expected to confer.

This extraordinary proceeding, which took place in 1635, was probably the a result of a variety of causes. It may be that Charles, while he concealed his displeasure at the memorial which the Company presented to parliament in 1628, had never forgotten it, and was therefore not imwilling to avail himself of the first opportunity which offered to take his revenge. The very bitter terms in which the past conduct of the Company is stigmatized, certainly savours of vindictiveness. On different occasions his majesty had borne strong and willing