tion of the government, and the possessions acquired by the Portuguese in the East were neglected. From this time the power of Portugal in the East declined, and she gradually lost most of her possessions, some to the Dutch, who took Cochin, Ceylon, and Nagapatam, and some to the native powers. The Portuguese dominions in the East are now limited to a few places of small population and no political importance, and a Portuguese ship is now seldom seen in the Indian seas.

Near the close of the 16th century, Holland took its place among the nations of Europe, and soon acquired the first rank as a maritime power. They first attempted to proceed to the East Indies by the Arctic Ocean, but after making three unsuccessful efforts, a fleet of several ships proceeded round the Cape of Good Hope in 1576. The Dutch were soon engaged largely in eastern trade, and contended with the Portuguese for supremacy in the Indian seas. This was the first interference which the Portuguese experienced from any European power, and the eastern nations then saw the only two Christian nations of whom they had any knowledge, engaged in violent war with each other. The ships of each nation seized and plundered those of the other, wherever they could be found. The conflict was chiefly in the islands and places east and south-east from India, where the Dutch soon gained the ascendency and still have large possessions. They also took Ceylon, Cochin, Negapatam, and some other places from the Portuguese in India.

COMMERCE AND CONQUESTS OF THE ENGLISH.

The first attempts of English navigators to reach India were made through the Arctic Ocean, by Sir Hugh Willoughby, Frobisher, and others. In 1577, Sir Francis Drake commenced his voyage round the world, passing through the Straits of Magellan and returning by the Cape of Good Hope. While on the western coast of South America, he made prizes of several richly laden Spanish ships, and brought home with him great wealth. His success produced great excitement, and a strong spirit for discovery and foreign commerce. Queen Elizabeth visited him on board his ship, and conferred upon him the honor of knighthood.

In 1583, some enterprising travellers and merchants proceeded to India by way of Aleppo, Bagdad, and Ormuz. Among the places they visited, were Goa, Beejapoor, Golconda, Burhanpoor, Agra, Benares, Serampore, Malacca, and Ceylon. The description they gave of the productions, wealth, and commerce of the countries they visited, excited strong desire for opening communication with them. In 1591, three ships sailed for India round the Cape of Good Hope. So many of the crews became sickly on this voyage that one ship returned home with the invalids. Another ship disappeared soon after passing the Cape of Good Hope, and was never again heard of, and the other having seized several rich prizes, and traded in different places with varied success, returned home after an absence of more than three years. In 1599, Queen Elizabeth sent Sir John Mildenhall on an embassy to the emperor of India, the Great Mogul, as he was called. But he died in Persia, on his way home, and it does not appear that any important advantages were secured by his embassy.

The nation had now obtained so much knowledge of eastern countries, there was so much demand for the manufactures and productions of those countries, and they saw the Portuguese and Dutch obtaining so much advantage from commerce with them, that in the early part of 1600, an association was formed in London for carrying on direct trade with India, and on the 13th of December, A. D. 1600, this association obtained an Act of incorporation, under the title of "The Governor and Company of Merchants of London, trading to the East Indies." The company was to be under the management of a governor and 24 committee-men, all to be chosen annually. The rights and privileges of the Act were to continue for 15 years, but if the monopoly should be found to be injurious to the public welfare, then upon two years' notice, it might become annulled. Such was the origin of the East India Company.

Such was the confidence in the newly formed company, that the subscriptions to the capital soon amounted to more than £75,000, and in a few months they despatched 5 ships under the command of Captain Lancaster, who some years before had made a voyage to the East Indies. He proceeded to Sumatra, Java, and some other places, but he found the articles he required so scarce and costly, that "he became apprehensive of incurring

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loss, and what he seems to have dreaded still more, the disgrace of returning home without a cargo. From this anxiety he was relieved by meeting a Portuguese vessel of 900 tons, of which he made a prize, and found it so richly laden with calicoes and other valuable goods, that he not only occupied all his tonnage, but could have filled more ships, if he had had them.”

For several years, the business of the company consisted of a series of separate adventures, in which each subscriber shared in the profits on the final adjustment, in proportion to the sum he had paid. In 1612, it was resolved to have a permanent or fixed capital on the principle of a joint-stock company for four years, and the sum of £418,691 was subscribed to it. This change gave more stability, regularity, and responsibility to their proceedings. Their trade was embarrassed by the opposition of the Portuguese and Dutch, and in 1615, Sir Thomas Roe was sent as ambassador to the Grand Mogul. He remained in India several years, and obtained some important advantages for the company.

In 1617, the period of four years having expired, a fresh subscription for four years more was opened, and such was the desire to participate in it that £1,629,040 were subscribed. The subscribers "consisted of 15 dukes and earls; 82 knights, including 2 judges; all the king's council, and 5 privy-councillors; 13 countesses and ladies; 26 doctors of divinity and physic; 18 widows and virgins; 313 merchants and 214 tradesmen; 212 without titles; 13 merchant-strangers, and 36 whose occupations were unknown, making in all 954." These facts show that the trade with India had taken strong hold of the feelings of the nation. The affairs of the company were sometimes prosperous, and sometimes embarrassed, varying with the state of the nation, and their success or losses in their conflicts with the Portuguese and Dutch in the East Indies. When England was at war with either of these nations, each party endeavored to seize the other's ships engaged in the Indian trade, as such ships had generally very rich cargoes. And when there was no war between these nations, yet if it was easier and cheaper to obtain cargoes by seizing ships already laden than to purchase such commodities, little scruple was felt about seizing and plundering such ships. The Portuguese, the

Spanish, the Dutch, and the English, who were engaged in the Indian trade, were generally at war with each other when east of the Cape of Good Hope, though the nations in Europe were in a state of peace.

The first territory acquired by the Company in India, was Madras, which was obtained in 1640, by treaty with a native prince. The Company erected a fort there, and called it St. George, the town retaining its original name. In 1667, this place was incorporated by a royal charter. In 1668, the island of Bombay, which was included in the dowry Charles I. had received by his marriage with the Infanta of Portugal in 1662, was ceded by him to the East India Company, and in 1687, was constituted the chief seat of the British government in India.

The charter of the Company was from time to time renewed and altered, as experience suggested and the exigencies of its affairs appeared to require. In 1661, the Company's governor and council in any of the factories, were empowered to exercise civil and criminal jurisdiction according to the laws of England. Also to export warlike stores, and to make peace and war with any princes in the limits of their trade, not being Christians. In 1670, the Company employed 30 ships with from 60 to 100 men each. Their affairs were subject to great fluctuations, and in 1665 their stock in the market was 70 per cent. In 1676 it rose to 245 per cent., and in 1685 it was sold for 500 per cent. Soon after this the capital was increased, and in 1702, it amounted to £2,000,000, and they had factories in more than 60 different places. A factory was originally a house of agency for the sale and purchase of goods. Some of these in the progress of trade had become very large establishments, and often contained a great amount of money and valuable property. Such were generally fortified to secure them against the Portuguese and Dutch, and also against native princes in times of anarchy and civil war. These fortified factories were often the scenes of severe conflict, sometimes taken and plundered, and at other times successfully defended. In 1664, when Shevajee, the founder of the Mahratta empire, attacked Surat and plundered the city, the agents of the Company defended their factory with so much valor, that much as he wished to get possession of it, he did not succeed.

The factories or commercial establishments of the European companies often contained property of great value. In oriental cities, the police is generally inefficient and frequently very corrupt. The countries are often distracted by civil wars, when the parties become more intent upon enriching themselves by plunder than upon bringing war to a conclusion. In such cities every rich man was obliged to regard his house as his castle, and have some means for defending it. In such circumstances the reasons for Europeans fortifying their factories are obvious, but the native princes in permitting this to be done, supposed nothing would be done beyond what was necessary for selfdefence. They never supposed that these places of trade would become strong forts to resist their power, involve them in war, subvert their governments, and bring their countries into subjection to foreign princes. In these respects history shows how much they were disappointed.

It was in Bengal, where the business of the Company became most extended, that they first attempted to acquire and establish political and military power. The agents there complained to the Directors of the Company of the injuries and losses they had suffered from the native powers, and expressed their firm belief that the only way of obtaining any redress for the past and security for the future, was by being put into circumstances to defend themselves, and to assert and maintain their rights. In consequence of these complaints and representations, the Directors sent 10 armed ships, carrying from 12 to 70 guns each, and 6 companies of soldiers. It was expected this military force would be largely increased by companies or regiments of native soldiers, commonly called sepoys, and ready to fight for any power which will pay them. The plan was to take Chittagong, fortify it, and then make it the centre of their military operations. The expedition appears to have been badly managed. The fleet arrived in the Ganges at different times, and did not act in concert. They made an attack on Hoogley and were repulsed. Their factories at Patna and Cossimbazar were taken and plundered. The Nabob assembled all his army and made an attack upon them. There was much severe fighting, and the Nabob's forces were repulsed in several assaults. The English defended themselves on the island of Injellee, which