278
lIISTOIiy OF INDIA.
[Book II.
A.U. IGM.
Arrange- ments in favour of a regiilateJ company.
Cromwell's decision.
all, "the engagements which the Company were under to the native powers to make good any losses which their subjects might sustain by the depredation-s of Englishmen," even though these should not belong to their service. On these grounds, they thought themselves entitled to ])ray that the Protector would be pleased to renew their charter, with such additional privileges as ha/1 been found necessary to enable them to carry on their trade ; to prohibit private persons from sending out shipping to India ; and to assist thern in recovering their position in the Spice Islands. Were this prayer granted, they had no doubt of being able not only to procure a large subscription at present, but to establish the East India trade on a secure and durable basis.
On the other hand, the Assada merchants alleged that management by joint stocks had not been so profitable either to subscribers or to the public as that of separate voyages would have been; and appealed in proof to the successful manner in which the Turkey, Muscovy, and Eastland trades were carried on under free companies. Besides this appeal to experience, they argued the point at great length, insisting, in substance, that a free trade regulated would encour- age industry and ingenuity, giving them full latitude and scope for exercise ; while each person, instead of standing idle and leaving others to act for him, had the ordering of liis own affairs, and consequently opportunity to make use of his 0"wn talents ; that by increasing the number of traders, it would destroy the spirit of monopoly, and, by means of active competition, lower the price of foreign commodities, to the great advantage of the public ; that instead of restrict- ing adventurers to a set time when the subscription list of a joint stock required to be peremptorily closed, and to the payment of ready money as the only mode of investment, it left them at full liberty to choose their own time, and to invest in the mode which might be most convenient, not merely in ready money, but in goods or shipping ; and, finally, that besides being less expensive in its manage- ment than a joint stock, it would be far more eflacient, because the adventurers, " being whetted on by their own interest and the competition of others, will in reason tiu-n every stone for discovering of new trades;" and thus have some advantage over the Dutch Company, who, hadng little control over their ser- vants abroad, make Holland the principal seat of their management.
While the subject of a joint stock or a regulated trade was thus keenly agitated, Cromwell at first maintained a strict neutrahty between the contend- ing parties, granting authority to both to undertake voyages to India, and conduct them on their own principles. An authoritative decision, however, was necessary ; and to obtain it, the whole question was submitted to the comicil of state in a writing signed by the Protector's own hand, and bearing date 20th October, 1656. The council refen-ed the matter to a select committee, who were dii'ected to report " in what manner the East India trade might be best managed for the public good and its own encouragement." On 18th December following, the committee reported that, after taking means to obtain the fullest informa-
