The fact is this; the East India Company had for a good while solicited the ministry for a negotiation, by which they proposed to pay largely for some advantages in their trade, and for the renewal of their charter.  This had been the former method of transacting with that body.  Government having only leased the monopoly for short terms, the Company has been obliged to resort to it frequently for renewals.  These two parties had always negotiated (on the true principle of credit) not as government and subject, but as equal dealers, on the footing of mutual advantage.  The public had derived great benefit from such dealing.  But at that time new ideas prevailed.  The ministry, instead of listening to the proposals of that Company, chose to set up a claim of the crown to their possessions.  The original plan seems to have been, to get the House of Commons to compliment the crown with a sort of juridical declaration of a title to the Company’s acquisitions in India; which the crown on its part, with the best air in the world, was to bestow upon the public.  Then it would come to the turn of the House of Commons again to be liberal and grateful to the crown.  The civil list debts were to be paid off; with perhaps a pretty augmentation of income.  All this was to be done on the most public-spirited principles, and with a politeness and mutual interchange of good offices, that could not but have charmed.  But what was best of all, these civilities were to be without a farthing of charge to either of the kind and obliging parties.  The East India Company was to be covered with infamy and disgrace, and at the same time was to pay the whole bill.

In consequence of this scheme, the terrors of a parliamentary inquiry were hung over them.  A judicature was asserted in Parliament to try this question.  But lest this judicial character should chance to inspire certain stubborn ideas of law and right, it was argued, that the judicature was arbitrary, and ought not to determine by the rules of law, but by their opinion of policy and expediency.  Nothing exceeded the violence of some of the managers, except their impotence.  They were bewildered by their passions, and by their want of knowledge or want of consideration of the subject.  The more they advanced, the further they found themselves from their object.—­All things ran into confusion.  The ministers quarrelled among themselves.  They disclaimed one another.  They suspended violence, and shrunk from treaty.  The inquiry was almost at its last gasp; when some active persons of the Company were given to understand that this hostile proceeding was only set up in terrorem; that government was far from an intention of seizing upon the possessions of the Company.  Administration, they said, was sensible, that the idea was in every light full of absurdity; and that such a seizure was not more out of their power, than remote from their wishes; and therefore, if the Company would come in a liberal manner to the House, they certainly could not fail of putting a speedy end to this disagreeable business, and of opening a way to an advantageous treaty.