1784] PITT'S INDIA BILL 1135 able capital were embarked in this trade. Large vessels brought their tea, and lay off at some distance, distributing their cargoes to small vessels, which landed them here and there on the coast. Regular receiving-houses were established and lines of carriers which brought the tea to the towns. It was estimated that the smuggled tea was at least as much as that which paid duty. Pitt lowered the duty both for this article and for spirits, the other great smuggled commodity, so as to withdraw the temptation from the smugglers. The deficit was made up by a house and window tax; this is known as the Commutation Tax. An Act called the Hovering Act was also passed, which extended the limits of the authority of the revenue officers to four leagues from the coast. Half the unfunded debt Pitt funded, and made up the deficit, which he considered a little below a million, by taxes on various commodities. These arrangements though they show no great novelty, were much applauded at the time. Pitt's India 1784. Having thus cleared the way for general legislation, Pitt proceeded to bring in his India Bill. It was very like the one which had been defeated the preceding year, and Bul was probably chiefly the work of Dundas. The fate of Fox's Bills had shown the strength of the India House, while the necessity for some Government control was acknowledged by all parties. The present measure was therefore one of compromise. A new ministerial department was established which should exercise the whole political control of the Company; this was to be called the Board of Control. By it was laid the foundation of that system of double government which continued in force till 1858. All business was to be carried on in the name of the Company, which retained the whole patronage except the appointment of the commander-in-chief, and other higher functionaries, whose appointment was subject to the veto of the Crown; but the Board of Control absolutely dictated the political conduct of the Government. Thus the chartered rights of the Company were left untouched; the balance of influence was not upset by a sudden change of patronage; the Board of Control, being ministerial, passed in or out of office with the ministry, but India was secured against mercantile views of policy by its political management being withdrawn from the hands of a merchant company. It was certainly a less complete Bill than its predecessor, it could not be a permanent arrangement, but tided over the present difficulty, and was carried without serious opposition. Much more difficult was the settlement of Ireland. The rational Condition of Flood's democratie measure of reform. and patriotic demands of the volunteers, which had led to the legislation of 1780 and 1782, had been satisfied by those measures, but had been followed, as is always the case in Ireland, by agitation of a more revolutionary character. The leadership of the movement had passed from Grattan to Flood, rather a demagogue than a statesman, and the volunteers, a national and patriotic body, gradually dwindled to nothing, and in their place arose a clamorous and revolutionary democracy. The cry put forward was for parliamentary reform, the urgent necessity for which was indeed obvious. In a Parliament of 300, 116 seats were held by nominees of no more than 25 proprietors. The Government commanded 186 votes, pledged to them in exchange for the possession or hope of offices or pensions, 12 members were regarded as honest supporters of the Government, the regular Opposition was about 82, 30 Whig nominees, and 52 members of the popular party. To this Parliament Flood introduced a sweeping measure of reform. A scene of wild uproar was the consequence, the Bill was thrown out by a large majority; no better success attended its reintroduction in a more moderate form. The mob rose in wild disorder, and acts of ferocious cruelty were perpetrated. The leader of this movement outside Parliament was Napper Tandy, an ironmonger, who did not scruple to intrigue with the Court of France. Some of the lower priests were also engaged on the popular side, but as Flood refused the franchise to the Catholics in his proposition, the main body held aloof from the movement. This state of disorder Pitt intended to improve by reforming the Parliament in a more practical and moderate manner and by commercial arrangements. All attempts at parliamentary reform had however to be abandoned; but the minister felt that before any vigorous measures could be adopted it was necessary to grant justice to the people. He determined therefore to complete the work of 1780, and to establish real commercial equality between England and Ireland. At the same time he strongly held that equality of privilege implied equality of burdens. In accordance with this view eleven resolutions were brought into the Irish Parliament and accepted without much opposition. By these the restrictions of trade, which had already been removed as far as regarded Europe and the West Indies, would be removed in like manner with regard to the rest of the world; and with regard to imports, England and Ireland would become one nation, so that goods landed in Ireland could be re-imported into England without further duty. In exchange for this. Pitt's policy for Ireland. 1784] PITT'S IRISH POLICY Selfish opposition. 1137 all the hereditary income of the Crown, which was derived chiefly from customs, beyond the sum of £656,000 was to be applied to the support of the Imperial navy. Thus the money paid would bear a direct proportion to the advantages gained by Ireland by the extension of her trade. Pitt, sure of the economical soundness of the principles on which this Bill was based, only courted full discussion. He underrated the selfishness of the commercial interest. On the resolutions being introduced to the English Parliament, commercial the strongest opposition was raised by merchants and manufacturers, afraid of a fresh competitor; and Fox and Burke, the first of whom was confessedly ignorant of the laws of political economy, turned the opposition to their party purposes. The Bill had to be altered considerably, restrictions with regard to the Asiatic trade had to be continued, thus seriously diminishing the advantage granted to Ireland, while Pitt laid himself open to the charge of encroaching upon the newly-earned independence of that country by trying to establish the commercial superiority of England, since all this commercial legislation was to emanate from the English Parliament. The Whigs took immediate advantage of this error, and, unable to stop the Bill in the English Parliament, used all their eloquence to inflame the patriotic feeling of the Irish. The Bill in its changed form was therefore rejected in Dublin (August), and Pitt began to feel the necessity for that great measure which he completed eighteen years afterwards. If either true parlia- the necessity mentary reform was to be brought about or commercial equality to be established, not only legislative equality, but legislative union, it was plain, would be necessary. Pitt recognizes for a union. This was not the only defeat which the ministry suffered. It was no more successful in its efforts at parliamentary reform in England. In fact, the interest felt in the question had begun to flag, it had been raised to its utmost by the separation between the representatives of the people and the people they represented, which had been so obvious during the administration of Grenville, and by the long and disastrous triumph of royal influence Failure of Pitt's under Lord North. But Pitt's success rested entirely Reform Bill. upon the will of the constituencies after the late dissolution, and the people were on the whole satisfied with their representation. But with Pitt, as with his father, the reform of Parliament had always been a favourite object; he now produced a Bill by which he hoped to win all parties to his side, but its very timidity weakened its popularity. He proposed to disfranchise thirty-six rotten boroughs, and to give the seventy-two seats thus gained to the counties and to London and Westminster. Thus far he was true to his old plan, but afraid of the opposition of borough proprietors, he consented to recognize as a part of the Constitution their rights of proprietorship, and designed to set apart a fund of £1,000,000 to satisfy the claims of the possessors of the boroughs which he wished to destroy. Such as it was the Bill was rejected by a majority of seventy, and Pitt regarded the question henceforward as settled against him. It is to be observed that all these measures, whether successful or not, were such as we should now speak of as Liberal measures. success. The success of the Government in its financial schemes, on the His financial other hand, was marked, although the arrangement which at this time excited most admiration has since been recognized as based upon an absurd fallacy. Alarmed at the great increase of the National Debt, and inspired with an honest wish to reduce it, Pitt produced his plan for a sinking fund. His taxes had been so successful, and the financial recovery of the nation at peace and under a firm Government had been such, that he found himself possessed of a surplus closely bordering on a million, and suggested that this million should annually be set aside and vested in commissioners to accumulate at compound interest. It was to be beyond the control of Government, and this fund with its accumulations was to be applied, as circumstances permitted, to the reduction of the debt. The principle is obviously sound as far as it goes, that is to say, what a nation saves it can clearly apply to the purpose of reducing its liabilities, but there the matter ends; there is and can be no peculiar and mysterious power in a sinking fund. But this was not seen by Pitt, or by those who approved of his plan, and when times of difficulty arose, the million went on year by year being religiously set aside, although not only one million, but many millions were yearly borrowed for the purpose of covering the current expenses of the year. Interest, and often much higher interest, was thus paid out on the one side in order that a less interest might be gained on the other. It was not till the year 1828 that this fallacy was finally exposed by Lord Grenville, who, strangely enough, had been the chairman of the committee who first recommended its adoption. It had however been virtually abandoned in 1807. Although Commercial he fell into this error, Pitt's financial views were generally broad; thus about this time he entered into a commercial treaty with France, by which, with some very few 17851 IMPEACHMENT OF HASTINGS 1139 exceptions, prohibitory duties between the countries were repealed, a moderate tariff was established, and the famous Methuen Treaty with Portugal, which had almost excluded French wines, and changed the habits of the English nation, giving them a taste for the hot wines of the Peninsula, was abrogated. He also greatly simplified the custom duties, supplying their place in some instances with excise or customs levied inland, a most beneficial measure, but formerly so unpopular that it had almost proved fatal to the ministry of Walpole, the only great financial minister England had had during the century. Charges against Hastings. These measures, important as they were, excited little attention in comparison with the threatened impeachment of Warren Hastings. Though, as we have seen, censured, Warren and almost recalled in 1781, the Governor-General had latterly retained his post unmolested, and came home in June 1785 on the natural expiration of his office. At home he was well received, but he had two vindictive enemies in the House of Commons, one, Edmund Burke, whose imagination had always been strongly drawn towards the majestic history of Hindostan, and whose hatred of oppression had been strongly fired by the accounts which had lately been received from India; the other, Philip Francis, the rancorous and defeated rival of the late Governor-General; and Hastings had scarcely arrived in England before Burke gave notice that he should call attention to his conduct. The feeling in England that Hastings had on the whole done a great work was so strong, that, although the ministry had shown him many marks of favour, it is possible that even Burke might have left him untouched had not his injudicious and wearisome agent, Major Scott, challenged inquiry. Burke accepted the challenge, and in April produced specific charges against him, based principally on his war with the Rohillas and on his conduct to Cheyte Singh and the Begums of Oude. Hastings, who was always unable to understand the feeling of the House of Commons, insisted on being personally heard at the bar, and wearied the House by reading a written document of enormous length, which occupied a day and a half in reading. On the first charge, however, with regard to the Rohilla war, a considerable majority was in his favour; it will be remembered that this belonged to the first period of his administration, and it was upon this that he had been already censured; but as Dundas, the original mover of the vote of censure, urged, with much show of right, the fault was an old one, and had been condoned by the subsequent appointment of Hastings as Governor-General. |