How British East India Company Governed India? Part-1

British East India Company Governing INDIA 

WE had confidently believed, from certain semi-official announcements in the columns of the leading journal of the day, that the Queen's speech on the opening of the session would have announced, in clear and unequivocal language, the impending fall of the double government for India, and the consequent extinction of the East India Company. The document which is supposed to dimly reveal the ministerial future, and set forth the programme of the parliamentary year, disclosed, however very little of the policy of the government on this vital and absorbing subject. It is now understood that considerable difference of opinion for some time existed in the cabinet on the form which was to be given to our future administration of India. A sufficient degree of unanimity appears to have been subsequently attained to enable the government to give formal notice to the Court of Directors of the intention of the ministry to bring in a bill for the extinction of their functions; but nothing more definite can be inferred from what has already been done, and it is questionable whether the administration is even yet agreed upon the principles of a measure which must, before long, excite very general discussion. The reconstruction of the Indian government will soon form the subject of earnest debate, and, doubtless, of practical legislation, and it is one that will tax to the utmost the patience and wisdom of parliament. Let it not, however, be forgotten, that while the British arms are employed in reasserting our supremacy in the plains and cities of Hindostan, a work of equal urgency and importance is to be done at home. We have to watch the development, sift the principles, and, scrutinise the details of this forthcoming measure, which may be destined to work immense changes both in India and England—to prevent, by the exercise of free discussion, a scheme framed for the better government of our great dependency from becoming a mere bureaucratic institution, and to guard against such a deviation from a noble plan of political improvement as shall convert the intended erection into a colossal edifice of parliamentary jobbery and corruption. We propose, therefore, to consider the present position of the question; but we must, in the first place, briefly pass in review a few of the changes which the government of India has undergone, from our first connexion with it as simple traders until the final consolidation of its wide-spread and magnificent territories under the imperial say or protection of Great Britain.

The East India Company is, or rather was, an anomaly without a parallel in the history of the world. It originated from sub-scriptions, trifling in amount, of a few private individuals. It gradually became a commercial body with gigantic resources, and by the force of unforeseen circumstances assumed the form of a sovereign power, while those by whom its affairs were directed continued, in their individual capacities, to be without power or political influence. This extraordinary commercial body was first formed in London in 1599. In the following year it obtained a charter from the Crown, and was formed into a corporation for fifteen years under the title of "The Governor and Company of Merchants trading to the East Indies." The clear profits of the trade were said to have reached, in a few years, from 100 to 200 per cent. In 1611 the Company obtained permission from the Mogul to establish factories on several parts of the coast of India, in consideration of a moderate export duty upon its shipments. The success of its commerce was so great, that its capital was from time to time augmented, and its exclusive privileges renewed, for which the state received due equivalents in the shape of large pecuniary payments and loans without interest, and many leading statesmen, it is believed, more direct advantages. A Duke of Leeds, who was charged in the reign of Charles II with receiving five thousand pounds from the Company, was impeached by the House of Commons, and it is said that the prorogation of parliament, which occurred immediately afterwards, was caused by the tracing of the sum of ten thousand pounds to a much higher quarter.In 1661 a new charter was granted to the Company, in which all its former privileges were confirmed, but with the portentous addition of a clause enabling it "to make peace or war with or against any prince and people not being Christian!" From that moment the East India Company was no longer merely a mercantile company, formed for the extenstion of British commerce; it more nearly resembled a delegation of the whole power and sovereignty of Great Britain sent into the East. It, in fact, ought from that time to be considered a subordinate sovereign power. The constitution of the Company thus began in commerce and ended in empire. "By possession of these great authorities," to quote the admirable summary of Burke, speaking in 1788, "the East India Company came to be what it is—a great empire carrying on subordinately a great commerce. It became that thing which was supposed by the Roman law irreconcilable to reason and propriety— cundem negotia torem et dominum: the same power became the general trader: the same power became the supreme lord. In fact, the East India Company in Asia is a state in the disguise of a merchant."