СНАР. 2.

BOOK I. efforts of the Portuguese, obtained a favourable reception at Surat. The English now succeeded in 1613. forming a commercial arrangement. They obtained permission to establish factories at Surat, Ahmedabad, Cambaya, and Goga, which were pointed out, by the agents of the Company, as the best situations; and agreeing to pay a duty of 3 per cent., received assurance, that this should be the only exaction to which their merchandise should be subject; that protection should be afforded to their factories; and that their property, even in the case of the death of their agents, should be secured till the arrival of another fleet. A firmaun or decree of the Emperor, conferring these privileges, was received on the 11th of January, 1613; and authorised the first establishment of the English on the continent of India, at that time the seat of one of the most extensive and splendid monarchies on the surface of the globe.'

CHAPTER II.

From the Change of the Company into a JointStock Company, in 1612, till the Formation of the third Joint-Stock in 1631-2.

HITHERTO the voyages of the East India traders had been conducted on the terms rather of a regulated than a joint-stock company; each adventure being the property of a certain number of individuals, who contributed to it as they pleased, and managed it for

Bruce's Annals, i. 164.

BOOK I.

CHAP. 2.

1613-16.

their own account, subject only to the general regu- 2 lations of the Company. Whether this was more adapted or not, to the nature of commerce, and the interests of the nation, it was less favourable to the power and consequence of a Governor and Directors, than trading on a joint-stock, which threw into their hands the entire management and power of the whole concern. Accordingly, they exerted themselves to decry the former method, and, in 1612, were enabled to come to a resolution, that in future, the trade should be carried on by a joint-stock only.'

It still appears to have been out of their power to establish a general fund, fixed in amount, and divided into regular shares; the capital was still raised by a sort of arbitrary subscription, some individuals, whose names stood as members of the Company, advancing nothing, others largely. They now, however, subscribed, not each for a particular adventure, with an association of his own choosing, but all into the hands of the Governor and Directors, who were to employ the aggregate as one fund or capital for the benefit of those by whom it was advanced. On these terms 429,000l. was raised, which the Directors thought proper to divide for the purpose of four separate adventures or voyages, to be undertaken in as many successive years. The voyages were regulated, and composed as follows:

CHAP. 2.

BOOK I. The purchase, repair, and equipment of the vessels amounted to 272,5447., being the remainder of the 1613-16. stock.

The profit of these voyages was far from setting the management of a court of Directors, as compared with that of individuals taking charge of their own affairs, in a favourable light. The average of the profits on the eight voyages which preceded, leaving out of the account the small adventure of what is called the Company's fourth voyage, wholly unfortunate, was 171 per cent. The average of the profit on the four voyages in question, was only 87 per cent.1

As the power of the Portuguese in the East carried the usual consequences of power along with it, among other things, an overbearing and insolent spirit, they had already embroiled themselves with the Mogul government: an event favourable to the English, who were thus joined with that government in a common cause. At the same time the splendid achievements of the English, against an enemy whom the governments of India were ill able to resist, raised high their reputation for prowess in war. A Portuguese fleet burned the towns of Baroach and Goga and a powerful armament arrived at Swally with the Portuguese Viceroy, in January, 1614; which attacked the English; but was defeated, with a loss of 350 men. To improve these favourable circumstances, an agent of the Company repaired to the Mogul court, where he was well received, and obtained a royal firmaun for a general and perpetual trade; and in the same year took place the celebrated royal embassy of Sir

'Bruce, i. 166.

CHAP. 2.

Thomas Roe. The character of an ambassador, BOOK I. and the respect attached to it by the discernment of more enlightened nations, were but little understood 1613-16. at the court of the Mogul. On that occasion the choice of the English Ambassador was happy: Sir Thomas was a man of discernment, and temper, and made the most of the circumstances in which he was placed; though he soon discovered that it was bad policy by which he had been sent. He obtained redress of some of the grievances of which the English merchants complained; and concluded, though with difficulty, a sort of treaty, in which liberty was promised them of trading and establishing factories in any part of the Mogul dominions; Surat, Bengal, and Sindy being particularly named.'

Besides his other services, Sir Thomas bestowed advice upon the Company. "At my first arrival," says he, "I understood a fort was very necessary; but experience teaches me we are refused it to our own advantage. If the Emperor would offer me ten, I would not accept of one." He then states his reasons: first, he adduces evidence that it would be of no service to their trade: "secondly, the charge," he says, "is greater than the trade can bear; for to maintain a garrison will eat out your profit; a war and traffic are incompatible. By my consent you shall never engage yourselves but at sea, where you are like to gain as often as to lose. The Portugueses, notwithstanding their many rich residences, are beggared by keeping of soldiers; and yet their garrisons are but mean. They never made advan

1 Bruce, i. 171, &c. Sir Thomas Roe's Journal and Letters. Churchill. 1. 770-809.

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BOOK I. tage of the Indies since they defended them: observe this well. It has also been the error of the Dutch, 1613-16. who seek plantations here by the sword. They turn a wonderful stock; they prole in all places; they possess some of the best: yet their dead pays consume all the gain. Let this be received as a rule, that if you will profit, seek it at sea, and in quiet trade; for, without controversies, it is an error to affect garrisons and land wars in India."

"It is not a number of ports, residences, and factories, that will profit you. They will increase charge, but not recompence it. The conveniency of one, with respect to your sails, and to the commodity of investments, and the well employing of your servants, is all you need." If Sir Thomas had lived to the present day, he might have urged the trade with China as proof, by experiment, of the proposition he advanced.

"The settling your traffic here will not need so much help at court as you suppose. A little countenance and the discretion of your factors will, with easy charge, return you most profit; but you must alter your stock. Let not your servants deceive you; cloth, lead, teeth, quicksilver, are dead commodities, and will never drive this trade; you must succour it by change."

"An ambassador lives not in fit honour here. A meaner agent would, among these proud Moors, better effect your business. My quality, often, for ceremonies, either begets you enemies, or suffers unworthily. Half my charge shall corrupt all this court to be your slaves. The best way to do your business in it is to find some Mogul, that you may