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 Chap. III.] PROCEEDINGS OF COURTEN'S ASSOCIATION. 273

declined. The same causes which depressed the Company must have affected ad. icag. them in a similar manner, but their misfortunes seem to have been far more owing to their own misconduct. After wandering about M'ithout any fixed [)lan, and committing depredations which sibjected them to severe reprisals, they resolved in 16-i6 to establish a colony at St. Augustine's Bay, on the island of Madagascar. The project, injudicious in itself, was altogether beyond their means, and proved a failure. In order to lelieve the embarrassments into which they were thus thrown they had recourse to fraud, and set up a mint, at which they coined counterfeit pagodas and rials. The cheat Aas soon discovered, and so seriously damaged theii* character that they afterwards found great difficulty in carrying on even a legitimate trade. Not long after this p»^i'o^i »<>

amalganiatf

transaction, a proposal was made that the Company and the association should the ai^oda- forget their (juarrels and amalgamate. Had the Com])any been their own tumiwiny. masters, they would never have entertained this propo.sal; but a complete change had taken })lace in tlie |)olitical state of the kingdom, and, in tlie general uncertainty Avhich prevailed, it was dangerous to demur to any pro- posal which had the sanction of the dominant party. The king was now a prisoner in the Isle of Wight, and the cause of the parliament was everywhere trium])hant. The Company, trembling for their charter, endeavoured to meet the threatened storm by proposing a new subscription, in which they made a curious effort at conciliation. In the prospectus i.ssued, while the public gene- rally were restricted to a certain day for filling up the lists, an exception was made in favour of members of parliament, for whom the period of closing was prolonged that they might have an op])ortunity to consider the subject, and to become subscribers. The device is said to have succeeded ; and the plan device to obtained so much of the approbation of the commons, as to amount to a lavcmi of virtual recognition of the rights and privileges of the Company. Accordingly, " """*" ' tlie council of state — to which the questions at is.sue between the Compan}- and Coiu"ten's association, which was now designated by the name of " The As.sada Merchants," from their settlement on an island of that name near Madagascar, iiad been submitted — while declining to give any formal decision, strongly recommended an amalgamation.

In accordance with this recommendation, vai'ious conferences were held ^'"'O"

between tlie

between the managers of the two companies, and a union -was finally arranged, association The leading conditions were — That a stock of £300,000 should be subscribed company, within two months, to be paid by instalments in four yeai*s ; that a valuation siiould be taken of all the houses, shij)ping. and goods belonging to the CVunpany in India ; that the .settlei's on the island of Assada should be allowed to trade direct to any ports of Asia, Africa, and America, but not to trade from port to port in India ; that, on this continent, a fortified station should be fixed on for both companies; that all Indian goods, .spices, &c., should be joint propert}'; that salaries, both in England and India, should be reduced; and that, in tlie Vol. I. 35