Molyneux soon found that he had ventured on a perilous undertaking. A member of the English House of Commons complained in his place that a book which attacked the most precious privileges of the supreme legislature was in circulation. The volume was produced; some passages were read; and a Committee was appointed to consider the whole subject. The Committee soon reported that the obnoxious pamphlet was only one of several symptoms which indicated a spirit such as ought to be suppressed. The Crown of Ireland had been most improperly described in public instruments as an imperial Crown. The Irish Lords and Commons had presumed, not only to reenact an English Act passed expressly for the purpose of binding them, but to reenact it with alterations. The alterations were indeed small; but the alteration even of a letter was tantamount to a declaration of independence. Several addresses were voted without a division. The King was entreated to discourage all encroachments of subordinate powers on the supreme authority of the English legislature, to bring to justice the pamphleteer who had dared to question that authority, to enforce the Acts which had been passed for the protection of the woollen manufactures of England, and to direct the industry and capital of Ireland into the channel of the linen trade, a trade which might grow and flourish in Leinster and Ulster without exciting the smallest jealousy at Norwich or at Halifax.
The King promised to do what the Commons asked; but in truth there was little to be done. The Irish, conscious of their impotence, submitted without a murmur. The Irish woollen manufacture languished and disappeared, as it would, in all probability, have languished and disappeared if it had been left to itself. Had Molyneux lived a few months longer he would probably have been impeached. But the close of the session was approaching; and before the Houses met again a timely death had snatched him from their vengeance; and the momentous question which had been first stirred by him slept a deep sleep till it was revived in a more formidable shape, after the lapse of twenty-six years, by the fourth letter of The Drapier.
Of the commercial questions which prolonged this session far into the summer the most important respected India. Four years had elapsed since the House of Commons had decided that all Englishmen had an equal right to traffic in the Asiatic Seas, unless prohibited by Parliament; and in that decision the King had thought it prudent to acquiesce. Any merchant of London or Bristol might now fit out a ship for Bengal or for China, without the least apprehension of being molested by the Admiralty or sued in the Courts of Westminster. No wise man, however, was disposed to stake a large sum on such a venture. For the vote which protected him from annoyance here left him exposed to serious risks on the other side of the Cape of Good Hope. The Old Company, though its exclusive privileges were no more, and though its dividends had greatly diminished, was still in existence, and still retained its castles and warehouses, its fleet of fine merchantmen, and its able and zealous factors, thoroughly qualified by a long experience to transact business both in the palaces and in the bazaars of the East, and accustomed to look for direction to the India House alone. The private trader therefore still ran great risk of being treated as a smuggler, if not as a pirate. He might indeed, if he was wronged, apply for redress to the tribunals of his country. But years must elapse before his cause could be heard; his witnesses must be conveyed over fifteen thousand miles of sea; and in the meantime he was a ruined man. The experiment of free trade with India had therefore been tried under every disadvantage, or, to speak more correctly, had not been tried at all. The general opinion had always been that some restriction was necessary; and that opinion had been confirmed by all that had happened since the old restrictions had been removed. The doors of the House of Commons were again besieged by the two great contending factions of the City. The Old Company offered, in return for a monopoly secured by law, a loan of seven hundred thousand pounds; and the whole body of Tories was for accepting the offer. But those indefatigable agitators who had, ever since the Revolution, been striving to obtain a share in the trade of the Eastern seas exerted themselves at this conjuncture more strenuously than ever, and found a powerful patron in Montague.
That dexterous and eloquent statesman had two objects in view. One was to obtain for the State, as the price of the monopoly, a sum much larger than the Old Company was able to give. The other was to promote the interest of his own party. Nowhere was the conflict between Whigs and Tories sharper than in the City of London; and the influence of the City of London was felt to the remotest corner of the realm. To elevate the Whig section of that mighty commercial aristocracy which congregated under the arches of the Royal Exchange, and to depress the Tory section, had long been one of Montague's favourite schemes. He had already formed one citadel in the heart of that great emporium; and he now thought that it might be in his power to erect and garrison a second stronghold in a position scarcely less commanding. It had often been said, in times of civil war, that whoever was master of the Tower and of Tilbury Fort was master of London. The fastnesses by means of which Montague proposed to keep the capital obedient in times of peace and of constitutional government were of a different kind. The Bank was one of his fortresses; and he trusted that a new India House would be the other.
The task which he had undertaken was not an easy one. For, while his opponents were united, his adherents were divided. Most of those who were for a New Company thought that the New Company ought, like the Old Company, to trade on a joint stock. But there were some who held that our commerce with India would be best carried on by means of what is called a regulated Company. There was a Turkey Company, the members of which contributed to a general fund, and had in return the exclusive privilege of trafficking with the Levant; but those members trafficked, each on his own account; they forestalled each other; they undersold each other; one became rich; another became bankrupt. The Corporation meanwhile watched over the common interest of all the members, furnished the Crown with the means of maintaining an embassy at Constantinople, and placed at several important ports consuls and vice-consuls, whose business was to keep the Pacha and the Cadi in good humour, and to arbitrate in disputes among Englishmen. Why might not the same system be found to answer in regions lying still further to the east? Why should not every member of the New Company be at liberty to export European commodities to the countries beyond the Cape, and to bring back shawls, saltpetre and bohea to England, while the Company, in its collective capacity, might treat with Asiatic potentates, or exact reparation from them, and might be entrusted with powers for the administration of justice and for the government of forts and factories?
Montague tried to please all those whose support was necessary to him; and this he could effect only by bringing forward a plan so intricate that it cannot without some pains be understood. He wanted two millions to extricate the State from its financial embarrassments. That sum he proposed to raise by a loan at eight per cent. The lenders might be either individuals or corporations. But they were all, individuals and corporations, to be united in a new corporation, which was to be called the General Society. Every member of the General Society, whether individual or corporation, might trade separately with India to an extent not exceeding the amount which such member had advanced to the government. But all the members or any of them might, if they so thought fit, give up the privilege of trading separately, and unite themselves under a royal Charter for the purpose of trading in common. Thus the General Society was, by its original constitution, a regulated company; but it was provided that either the whole Society or any part of it might become a joint stock company.
The opposition to the scheme was vehement and pertinacious. The Old Company presented petition after petition. The Tories, with Seymour at their head, appealed both to the good faith and to the compassion of Parliament. Much was said about the sanctity of the existing Charter, and much about the tenderness due to the numerous families which had, in reliance on that Charter, invested their substance in India stock. On the other side there was no want of plausible topics or of skill to use them. Was it not strange that those who talked so much about the Charter should have altogether overlooked the very clause of the Charter on which the whole question turned? That clause expressly reserved to the government power of revocation, after three years' notice, if the Charter should not appear to be beneficial to the public. The Charter had not been found beneficial to the public; the three years' notice should be given; and in the year 1701 the revocation would take effect. What could be fairer? If anybody was so weak as to imagine that the privileges of the Old Company were perpetual, when the very instrument which created those privileges expressly declared them to be terminable, what right had he