THE WEALTH OE NATIONS.

701

Sea Company carried on by means of their annual ship, theonly trade by which it, ever was expected that they couldmake any considerable profit, they were not without compe-titors, either in the foreign or in the home market. At Car-tlmgena, Porto Bello, and La Vera Cruz, they had to encoun-ter the competition of the Spanish merchants, who broughtfrom Cadiz , to those markets, European goods, of the samekind with the outward cargo of their ship ; and in Englandthey had to encounter that of the English merchants, whoimported from Cadiz goods of the Spanish West Indies , ofthe same kind with the inward cargo. The goods both ofthe Spanish and English merchants, indeed, were, perhaps,subject to higher duties. But the loss occasioned by the neg-ligence, profusion, and malversation of the servants of thecompany, had probably been a tax much heavier than allthose duties. That a joint stock compapy should be able tocarry on successfully any branch of foreign trade, when pri-vate adventurers can come into any sort of open and fair com-petition with them, seems contrary to all experience.

The old English East India Company was established in1600, by a charter from Queen Elizabeth. In the first twelvevoyages which they fitted out for India , they appear to havetraded as a regulated company, with separate stocks, thoughonly in the general ships of the company, In 1612, theyunited into a joint stock. Their charter was exclusive, andthough not confirmed by act of parliament, was in those dayssupposed to convey a real exclusive privilege. For manyyears, therefore, they were not much disturbed by interlopers.Their capital, Avhich never exceeded seven hundred andforty-four thousand pounds, and of which fifty pounds was ashare, was not so exorbitant nor their dealings so extensive,as to allord either a pretext for gross negligence and profu-sion, or a cover to gross malversation. Notwithstanding someextraordinary losses, occasioned partly by the malice of theDutch East India Company , and partly by other accidents,they carried on for many years a successful trade. But inprocess of time, when the principles of liberty were betterunderstood, it became every day more and more doubtful howtar a royal charter, not confirmed by act of parliament, couldconvey an exclusive privilege. Upon this question the de-cisions of the courts of justice were not uniform, but variedwith the authority of government and the humours of thebines. Interlopers multiplied upon them ; and towards the