The East India Company had recovered from their period of desolation. They had set their house in order, had been granted a further extension of their monopoly, were opening up a good trade with China, and had received fresh capital for their operations in wider spheres. The trade of the East was practically now in the hands of England, the Dutch East India Company having suffered very heavily, and the French East India Company after languishing had come to an end in 1790. Although there had been formed the first Danish East India Company as far back as 1612, and a Spanish Royal Company for trading with the Philippines incorporated in 1733 and an Ostend East India Company incorporated by the Emperor of Austria in 1723; yet the last-mentioned had become bankrupt in 1784, and now the English East India Company, after many vicissitudes, was left practically the sole surviving trading power in the Orient.

Under Pitt’s Act the directors of the English Company were allowed to superintend their shipping and matters of commerce as before, yet the Board of Control exercised its influence both in England and India. Each year the Company settled the number167 of ships to be built and their sizes. For instance, in 1784, as they saw that at least four more ships would be required, they ordered six to be built. The keels were to be laid down within six months, and the ships were to be launched within twelve months of the laying of the keel. The following year they decided to have three sets of shipping with about thirty ships in each class, so leave was given for eight ships to be built. Tenders were therefore advertised for in January 1786, much to the indignation of the owners, who complained that this advertisement was directed against their interests. They denied that hitherto their rates for freight had been exorbitant, and protested that they had embarked on immense shipbuilding programmes expressly for the Company’s benefit. The Company therefore replied, inviting them to send in tenders, which was done, the same rate being offered as in the preceding season—viz. ￡26 a ton to China direct, ￡27 for coast and China, Bombay ￡28, coast and bay ￡29. On 9th June of that year a tender was offered the Company to build a 1000-ton ship at ￡22 a ton for the first two voyages, and ￡20 for the third and fourth voyages.

Up till the year 1789 the size of the Company’s recent big ships had been from 750 to 800 tons. But in this year it was decided to build five ships of from 1100 to 1200 tons. The following May the Court resolved that from past experience ships could quite well make three voyages without stripping off their sheathing. And, further, those ships which had been accustomed to make the fourth trip their repairing voyage might with perfect safety perform even six voyages. A by-law of 1773 had restricted the employment of ships for more than four voyages, but168 this was now modified, and instead of four voyages agreements were entered into with the owners for the ships to run six.

It was decided also by the Company in the year 1789 to allow the commanders and officers of their ships to fill, freight free, all such outward tonnage as might be unoccupied by the Company, and to allow the Company’s servants and merchants residing under the Company’s protection in India to fill up such homeward tonnage as might be unoccupied by the Company, at a reasonable freight. When we come to the year 1793 we have to deal with an important Act of the reign of George III., which had far-reaching effects. The Company’s charter was extended until 1814, but provision was made for opening up the Indian trade to private individuals, and thus the long-lived monopoly of the Company was doomed. At length the agitations of the Liverpool and Bristol shipowners to be allowed to participate in the East India trade were to have some sort of effect, though it was far from what was desired. However, one of the conditions of the renewal of the Company’s exclusive privilege under this Act was that any of the Company’s civil servants in India, and the free merchants living in India under the Company’s protection, might be permitted to send to Europe on their own account and risk in the Company’s ships all kinds of Indian goods with the exception of calicoes, dimities, muslins and other piece-goods. And “for insuring to private merchants and manufacturers the certain and ample means of exporting their merchandize to the East Indies, and importing the returns for the same, and the other goods, wares and merchandize, allowed by169 this Act, at reasonable rates of freight,” the Company was ordered to set apart at least 3000 tons of shipping every year. The charge was to be ￡5 a ton on the outward voyage in times of peace, and. ￡15 homeward. But in the time of war the rates should be increased if the Board of Control approved. It was further stipulated that his Majesty’s subjects might be allowed to export from England to India any produce or manufactured goods except military stores, ammunition, masts, spars, cordage, pitch, tar and copper. But in all cases of exports and imports in this Anglo-Indian trade the goods must travel in the Company’s ships. These vessels, provided under the Act, thus became known as “extra East Indiamen,” and sometimes in reading books of voyages and travel of this period you will find the narrator informing the reader that he travelled to the East on board the “extra” East Indiaman so-and-so. It may be stated at once that though the Act was obeyed, it produced little result, for considering that the Company still had such a powerful monopoly of trade in the East, it was quite impossible for home merchants to compete with such a corporation. Most manufacturers and merchants declined to avail themselves of this privilege, full well realising beforehand how useless it would be. However, the Company fulfilled their obligation to provide this additional tonnage, though it entailed a heavy expenditure without much benefit to the public. The people who benefited most were the servants of the Company, who, being homeward bound, were able to bring back to England Indian produce that would find a ready market here.

In the year 1793 the Company had only thirty-170six vessels of 1200 tons each and forty of 800 tons each. This of course represented the whole of the British shipping trading to the East. Some idea of the shipbuilding programmes of the next few years may be gathered from the following facts, bearing in mind that the Company were trading to China as well as to India, and that both big and moderate-sized ships were deemed necessary. Thus in October of 1793 the Court decided that sixteen ships of from 700 to 800 tons were necessary, and one of 1200 tons for the annual imports from India in their regular commerce; and that fifteen large ships of 1200 tons would be required for imports from China. When a ship became worn out by age, accident or inability, an advertisement was published, describing the size of the ship required, inviting tenders and specifying the rate of freight to be paid for six voyages, the ship to be commanded by the captain of the ship whose bottom was worn out. In December of the following year it was resolved that ships of 1400 tons were the most suitable for the Company’s trade to China, but that these ships should be tendered at 1200 tons only. So also the regular ships (as distinct from the extra East Indiamen) which brought home their rich cargoes from Bengal and Madras were not to exceed 820 tons and to be chartered at 799 tons. It was further settled that ships of from 480 to 520 tons were the most suitable craft for bringing home what were known as “gruff” goods—that is, cargoes of Indian goods consisting of such raw materials as cotton, rice, sugar, pepper, hemp and saltpetre. The silks, muslins, tea and fine goods were carried in the Company’s larger ships, which carried also the passengers. From the latter171 quite a large revenue was obtained, as soon as the Company’s rule in India became fully established.

The public were still very jealous of the Company’s private monopoly, and the country was deluged by pamphleteers and tractarians giving vent to this indignation. However, some benefit had been obtained by a reduction in the freights, and it was brought about in the following manner. The suggestion was made that great advantages would result if India-built ships were employed by the Company for the spare freight which was lying ready for shipment to Europe. English oak was getting scarcer, and therefore dearer, and could ill be spared so long as the Royal Navy continued to be wooden walls: whereas out in India the Company owned inexhaustible forests. So from the year 1795 India-built ships were for the first time allowed to take exports and imports. They were commonly known as “country-built” ships, and in the year mentioned twenty-seven of these craft were despatched from India with cargoes of rice. The cost of engaging these ships was at ￡16 a ton for rice and other deadweight goods and ￡20 a ton for light goods, the ships to arrive and discharge in the Thames. As a result a saving in one season alone was made of ￡183,316 in respect of freights. But there occurred some keen disappointment to the owners of these India-built ships. The arrangement had been that, having delivered the goods mentioned in the Thames, they should be allowed to take back to India whatever merchandise they cared to put aboard. Many of these ships had been built as a speculation, their owners believing that they would be taken into the Company’s regular service and so172 be employed permanently. Notwithstanding that they had been warned against any such supposition, it came as a bitter grief to them when they realised that after the Company’s immediate requirements were completed the services of these ships were no longer required; but for all that the day was now not far distant when trade to India was to be thrown open altogether. It is the last straw which breaks the camel’s back, and the load which had been accumulating ever since the year 1600 was soon to reach the point when something would have to give way.

It should be explained that this was one of the most critical periods in the whole of England’s naval chronicle and therefore of her very existence. The Battle of the Glorious First of June had been fought in 1794, and in this same year Martinique had been captured from the French. The year 1795 was to be even still more replete with naval doings. Ships and men were required as they had never been wanted before, and it was just in this respect that the existence of the East India Company was of the greatest direct benefit to the country and the navy. It must always be to its honour that the Company which had for so long enjoyed the privilege of the In............