704 THE NATURE AND CAUSES 01'

on a successful trade, and from their profits made annuallya moderate dividend to their proprietors. During the French war, which began in 1741, the ambition of Mr. Dupleix , theFrench governor of Pondicherry , involved them in the warsof the Carnatic, and in the politics of the Indian princes.After many signal successes, and equally signal losses, theyat last lost Madras, at that time their principl settlement inIndia . It was restored to them by the treaty of Aix-la-Chapelle ; and about this time the spirit of war and conquestseems to have taken possession of their servants in India , andnever since to have left them. During the French war whichbegan in 1755, their arms partook of the general good for-tune of those of Great Britain . They defended Madras, tookPondicherry, recovered Calcutta , and acquired the revenuesof a rich and extensive territory, amounting, it was then said,to upwards of three millions a year. They remained for seve-ral years in quiet possession of this revenue: but in 1767,administration laid claim to their territorial acquisitions, andthe revenue arising from them, as of right belonging to thecrown; and the company, in compensation for this claim,agreed to pay to government four hundred thousand poundsa year. They had before this gradually augmented theirdividend from about six to ten per cent.; that is upon theircapital of three millions two hundred thousand pounds, theyhad increased it by a hundred and twenty-eight thousandpounds, or had raised it from one hundred and ninety-twothousand, to three hundred and twenty thousand pounds ayear. They were attempting about this time to raise it stillfurther, to twelve and a half per cent, which would have madetheir annual payments to their proprietors equal to what theyhad agreed to pay annually to government, or to four hun-dred thousand pounds a year. But during the two years inwhich their agreement with government was to take place,they were restrained from any farther increase of dividend bytwo successive acts of parliament, of which the object wasto enable them to make a speedier progress in the paymentof their debts, which were at this time estimated at upwardsof six or seven millions sterling. In 1769, they renewedtheir agreement with government for five years more, andstipulated, that during the course of that period, they shouldbe allowed gradually to increase their dividend to twelve anda half per cent.; never increasing it, however, more than oneper cent, in one year. This increase of dividend, therefore,