Mr. Hastings, to extricate himself from the difficulties into which this resignation had brought him, had recourse to one of those unlooked-for and hardy measures which characterize the whole of his administration.  He came to a resolution of disowning his agent, denying his letter, and disavowing his friends.  He insisted on continuing in the execution of his office, and supported himself by such reasons as could be furnished in such a cause.  An open schism instantly divided the Council.  General Clavering claimed the office to which he ought to succeed, and Mr. Francis adhered to him:  Mr. Barwell stuck to Mr. Hastings.  The two parties assembled separately, and everything was running fast into a confusion which suspended government, and might very probably have ended in a civil war, had not the judges of the Supreme Court, on a reference to them, settled the controversy by deciding that the resignation was an invalid act, and that Mr. Hastings was still in the legal possession of his place, which had been actually filled up in England.  It was extraordinary that the nullity of this resignation should not have been discovered in England, where the act authorizing the resignation then was, where the agent was personally present, where the witnesses were examined, and where there was and could be no want of legal advice, either on the part of the Company or of the crown.  The judges took no light matter upon them in superseding, and thereby condemning the legality of his Majesty’s appointment:  for such it became by the royal approbation.

On this determination, such as it was, the division in the meeting, but not in the minds of the Council, ceased.  General Clavering uniformly opposed the conduct of Mr. Hastings to the end of his life.  But Mr. Hastings showed more temper under much greater provocations.  In disclaiming his agent, and in effect accusing him of an imposture the most deeply injurious to his character and fortune, and of the grossest forgery to support it, he was so very mild and indulgent as not to show any active resentment against his unfaithful agent, nor to complain to the Court of Directors.  It was expected in Bengal that some strong measures would have immediately been taken to preserve the just rights of the king and of the Court of Directors; as this proceeding, unaccompanied with the severest animadversion, manifestly struck a decisive blow at the existence of the most essential powers of both.  But your Committee do not find that any measures whatever, such as the case seemed to demand, were taken.  The observations made by the Court of Directors on what they call “these extraordinary transactions” are just and well applied.  They conclude with a declaration, “that the measures which it might be necessary for them to take, in order to retrieve the honor of the Company, and to prevent the like abuse from being practised in future, should have their most serious and earliest consideration”; and with this declaration they appear to have closed the account, and to have dismissed the subject forever.