doubt concerning the policy of these unnatural trades.  “The amount of our Bengal cargoes, from 1769 to 1773, is 2,901,194_l._ sterling; and if the average increase of price be estimated at twenty-five per cent only, the amount of such increase is 725,298_l._ sterling.  The above circumstances are exceedingly alarming to us; but what must be our concern, to find by the advices of our President and Council of 1773, that a further advance of forty per cent on Bengal goods was expected, and allowed to be the consequence of advertisements then published, authorizing a free trade in the service?  We find the Duanne revenues are in general farmed for five years, and the aggregate increase estimated at only 183,170_l._ sterling (on a supposition that such increase will be realized); yet if the annual investment be sixty lacs, and the advance of price thirty per cent only, such advance will exceed the increase of the revenue by no less than 829,330l. sterling.”

The indignation which the Directors felt at being reduced to this distressing situation was expressed to their servants in very strong terms.  They attributed the whole to their practices, and say, “We are far from being convinced that the competition which tends to raise the price of goods in Bengal is wholly between public European companies, or between merchants in general who export to foreign markets:  we are rather of opinion that the sources of this grand evil have been the extraordinary privileges granted to individuals in our service or under our license to trade without restriction throughout the provinces of Bengal, and the encouragement they have had to extend their trade to the uttermost, even in such goods as were proper for our investment, by observing the success of those persons who have from time to time found means to dispose of their merchandise to our Governor and Council, though of so bad a quality as to be sold here with great difficulty, after having been frequently refused, and put up at the next sale without price, to the very great discredit and disadvantage of the Company.”  In all probability the Directors were not mistaken; for, upon an inquiry instituted soon after, it was found that Cantu Babu, the banian or native steward and manager to Mr. Hastings, (late President,) held two of these contracts in his own name and that of his son for considerably more than 150,000_l._ This discovery brought on a prohibition from the Court of Directors of that suspicious and dangerous dealing in the stewards of persons in high office.  The same man held likewise farms to the amount of 140,000_l._ a year of the landed revenue, with the same suspicious appearance, contrary to the regulations made under Mr. Hastings’s own administration.