accession to office, the caiffe des compte, the only incorporated banking company in France, ftopped payment. The minister of the day, more virtuous than enlightened, interfered in their favour; and iffued an edict to prevent their being compelled to difcharge for a limited time their own notes. By this measure he gave existence to what in America and upon the continent has been denominated by the odious appellation of paper-money, that is, paper incapable of being converted into its apparent value in fpecie at the will of the holder. Upon the impolicy of fuch a proceeding, it is unneceffary to enlarge. Mr. de Calonne was probably of opinion, that no fituation could authorise a national countenance of fuch a breach of faith. He was perfuaded, that it was mifconception in government that occafioned fo improper an indulgence; and falfe calculation in the proprietors that led them to demand it. He hesitated not to refcind the arrêt of his predeceffor, and compel the bank to prompt payment. The best confequences followed. There was no delay or embaraffinent, and the ftock of the company rofe to double its former value.

The majority of the financial operations of 178, feveral of which are defcribed in our fixth volume, are equally intitled to applaufe. A finking fund was formed upon a plan moderate in its extent, but highly beneficial in its operations. The disbursements of the treafury, had been fuffered to run into arrears; and a confiderable fum of ready money was now facrificed to reftore them to their regular halfyearly payments. Certain projects for the benefit of the lefs confiderable creditors of the nation, and for giving a freer circulation to the ar

ticle of brandies, had been formed by Mr. Turgot, the most enlightened minifter that France, the most enlightened minifter that perhaps any country has produced, but were left incomplete at his difmiffion from office. Mr. de Calonne showed himself fuperior to the little rivalfhip and jealoufy of fame, by which fucceffive minifters of state are frequently actuated: he entered into the views of his illuftrious predeceffor, and completed his operations.

The principal measure of the year 1785, is not intitled to the fame commendation. France had been without an Eaft India company from the year 1773; and, though the idea of a free trade to that part of the world had hitherto been untried in Europe, fhe did not appear to fuffer in the experiment. On the contrary, her annual inportation from India during this time was confiderably greater than during any former period. But, whether it were that they regarded this profperity as precarious; or that they aimed at a more extenfive fuccefs; or that they wifhed, in imitation of Britain, for territorial acquifitions in that climate, and believed an incorporated fociety the best inftrument of obtaining them; the French court was induced to liften to propofals for establishing a new Eaft India company. Their privilege was for feven years, with the fpecial provifo, that years of war which might occur in the interim, fhould be excluded from the com putation.

In the preamble of the act of the fourteenth of April, by which the fcheme was adopted, it was alledged,

been re

that the commodities of Europe, "not having of late years "gulated by any common ftandard, or proportioned to the demands "of India, had on the one hand

fold

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fold at a low price; while on the "other, the competition of the fubjects of France had raifed the price of the objects of importa"tion: that upon their return "home, a want of fyftem and af"fortment had been univerfally complained of, the market being glutted with one fpecies of goods, "and totally deftitute of another: "that these defects must neceffarily "continue as long as the trade re"mained in private hands, and "that, on their account, as well as "that of the capital required, the "establishment of a new company "was abfolutely neceffary.

These reasonings did not appear altogether fatisfactory to the perfons principally interested. France has been fo far enlightened by the difcuffions of the excellent writers fhe has produced upon questions of politics and commerce, as not to be prepared to behold the introduction of monopolies with a very favourable eye. By many perfons it was remarked, that the arguments of the preamble did not apply more to the trade of India than to any other trade; and that, if they were admitted in their entire force, they were calculated to give a finifhing blow to the freedom of commerce. The capital of the new company, which amounted to 830,000l. was ridiculed as altogether inadequate to the magnitude of the undertaking. The privileges with which it was indulged, were treated as enormous. The monopoly of East India goods imported into France from any part of Europe, was granted to them for two years, as well as the monopoly of Eaft India goods imported from the place of their growth. It was faid, that during that period they would fit out no adventures for India, that they hoped to obtain a prolongation of this injurious in

dulgence, and that, of confequence, their incorporation was in reality a confpiracy to prevent all future communication between France and the fources of commerce in Afia. A provifion in the act, directing that the prices of Eaft India goods in the iflands of Mauritius and Bourbon, fhould be regulated by a tariff to be fixed by the court of Verfailles, excited ftill louder exclamations. In this inftance, it was faid, the first principles of commerce were trampled upon in a manner the most wanton and abfurd. Inftead of fuffering it to find its own level by the mutual collifion of the wants of one party, and the labour of another, it was arbitrarily to be fafhioned by a power, whofe extreme diftance muft neceflarily render its decifions ill-timed and inapplicable. The very mode in which the monopoly was introduced, was a fubject of complaint. It was determined by a refolution of the king in council; a proceeding, totally inadequate to the importance of the fubject, and which was to be regarded as clandeftine and furreptitious. In all former inftances fuch measures affumed the form of edicts, and were registered in the parliaments. It was the prerogative of thefe courts to verify them, that is, to enquire into the facts which had led to their adoption. The injured parties had an opportunity of being heard before the privilege affumed the form of a law; not privately by the minifters of the fovereign, but publicly by the most confiderable bodies in the kingdom,

and in the face of the nation.

The act of council eftablishing a new Eaft India company, was followed on the tenth of July, by another declaration, intended ftill farther to promote their intereft, by which it was exprefsly forbidden to

im

import cottons, printed linens, and muflins, except through the medium of the company. The arrêt proceeds upon the fame principles of monopoly as in the former instance. It fets out indeed with a declaration, "that nothing can appear more defirable to the king, "or better accord with the fenti"ments of his heart, than a gene"ral liberty, that, freeing at once the circulation of commodities "from every fpecies of restraint, "fhould feem to make of all the "people of the world, but one na "tion with refpect to commerce:" but it adds, "that the period of "this liberty is not yet arrived; that it must either be, with re"fpect to the nations of Europe, "unlimited and reciprocal, or that "it cannot be admitted; that the "revocation of the former indulgence refpecting cottons and li"nens, was become neceffary, on "account of the opportunities it "created for contraband trade, and "because the competition of the "Eaft India company and private "traders would occafion a furplus "in the market, and the admiffion "of foreign manufactures would "decrease and annihilate the na"tional induftry."

46

The provifions that were made for carrying this law into effect, were confidered as unjust and severe. The merchants poffeffing any of the prohibited commodities, were allowed twelve months to difpofe of them; but upon the exprefs condition, that the commodities were to bear a ftamp, importing that they were vendible only to a certain period, a circumftance that muft neceffarily depreciate their value. It was alfo enacted, that the house of any trader might be entered by day or by night, at the folicitation of the directors, to fearch for prohibited

goods, which were to be confifcated to the use of the company. These kinds of vifits of the officers of revenue, hitherto unauthorised in France, were represented as peculiarly obnoxious, when they were made for the fole benefit of a privileged monopoly.

Taking it for granted, that the measure of limiting the commerce of India to a particular circle of traders, is injudicious; fome allowance is to be made for the minifter who is milled by the uniform example of every court in Europe. It were to be desired, that a man, who directs the affairs of a great nation, fhould be fuperior to the influence of a prevailing prejudice; but, if we measure statesmen of one country by a comparison with the statesmen of other countries, we fhall rather fee reason to applaud a minifter for being frequently guided by the found principles of political philofophy, than to condemn him for occafionally lofing fight of them. It is difficult to fay how far the best minifter is obliged to stoop from the elevation of his own judgment to the prejudices of the nation he governs. It is difficult to afcertain the blame that is due to a man, connected in a national council with other men who are frequently lefs his coadjutors than his rivals, and compelled to facrifice a part of his plan which may be impracticable, for the fake of effecting the part which may be within the reach of his influence. The validity of one of the objections to the new East India company, was virtually admitted in the following year, when it was found neceffary, in the month of October, to permit them to double their capital.

It was in the fame spirit of reftriction that a prohibition was itfued on the feventeenth of July,

for