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 372 HISTORY OF IXDTA. [Book II.

AD. 1098. in the northern, and so many fears in the southern j>art of Great Britain, cbamtd

to exist. Inducements The (liscussions to which the establisiiment of the Scotch East India Com-

to fiirin a i i • •

new Kngiish pany had given rise, and the obloquy wiiich the London India Company haxl company. jj^Q^j.j-gj ]^y i]^q nefarious proceedings of those who had asuq)ed its manage- ment, had made the English legislature fully aUve to the importance of placing the trade to the East on a new and permanent basis. The shape which the measm'e might have taken, had parliament been left at liberty to choose the wisest i^lan, would perhaps have differed much from that which was adopted ; but circumstances had occurred which rendered a new arrangement expedient, nf»t only (jii its account, but with a view to other purposes to which it might be made subservient. The powerful coalition which King William had formed to frustrate the ambitious designs of the King of France required an enormoas expenditure, and the necessity of obtaining the necessary funds to meet it seemed for a time to outweigh all other considerations. It had thas become obvious that the question which had long been keenly debated between the existing India Company and the numerous party now leagued in opposition to them, would be determined not so much on its own merits as <m mere pecuniary considerations. The government was in urgent want of money. What amount of contribution were the candidates for its favour prepared to furnish? On this low and unworthy ground the question of continuing the old, or of erecting a new company was now to be settled by act of parliament. The offer of the old Company was a loan of £700,000 at four per cent, interest: their opponents offered £2,000,000, at eight per cent., and obtained the prefer- ence. Considering the different rates of interest, the smaller loan was certainly the more advantageous to the public, but the greater amount of present relief which the larger loan afforded, was eagerly gi-asped at and carried the day. Ostensibly, however, the preference given to it was justified, not merely by the amount of the loan, but by the terms on which it was offered. The old Com- pany stipulated that the legislature should confirm their charter, and continue them in possession of all their privileges as a joint stock. Their rivals repudiated the idea of a joint stock, and asked only to be incoi'porated, at least in the first instance, as a regulated company, which would allow every member to trade in his own name and on his own responsibility to the amount of his subscribed capital. This arrangement being in accordance with the more liberal ideas which the Restoration had introduced, was supposed to possess intrinsic merits, which, even if other considerations had been equal, would have entitled it to be pi'eferred. Discussions The rcsolution in favour of a new East India Company was adopted by the

on the _ ^ • n

subject. House of Commous on 4th May, 1698, and on the 26th a bill was brought in tor the purpose of giving effect to it. It was strenuously opposed in aU its stages, the old Company being allowed to appear by counsel against it, but ultimately