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in Bengal so perfectly destructive a system。 The plan of their
government； however； has had exactly the same tendency。 It has
not been uncommon； I am well assured； for the chief； that is； the
first clerk of a factory； to order a peasant to plough up a rich
field of poppies and sow it with rice or some other grain。 The
pretence was； to prevent a scarcity of provisions； but the real
reason； to give the chief an opportunity of selling at a better
price a large quantity of opium； which he happened then to have
upon hand。 Upon other occasions the order has been reversed； and
a rich field of rice or other grain has been ploughed up； in
order to make room for a plantation of poppies； when the chief
foresaw that extraordinary profit was likely to be made by opium。
The servants of the company have upon several occasions attempted
to establish in their own favour the monopoly of some of the most
important branches； not only of the foreign； but of the inland
trade of the country。 Had they been allowed to go on； it is
impossible that they should not at some time or another have
attempted to restrain the production of the particular articles
of which they had thus usurped the monopoly； not only to the
quantity which they themselves could purchase； but to that which
they could expect to sell with such a profit as they might think
sufficient。 In the course of the century or two； the policy of
the English company would in this manner have probably proved as
completely destructive as that of the Dutch。
Nothing； however； can be more directly contrary to the real
interest of those companies； considered as the sovereigns of the
countries which they have conquered； than this destructive plan。
In almost all countries the revenue of the sovereign is drawn
from that of the people。 The greater the revenue of the people；
therefore； the greater the annual produce of their land and
labour； the more they can afford to the sovereign。 It is his
interest； therefore； to increase as much as possible that annual
produce。 But if this is the interest of every sovereign； it is
peculiarly so of one whose revenue； like that of the sovereign of
Bengal； arises chiefly from a land…rent。 That rent must
necessarily be in proportion to the quantity and value of the
produce； and both the one and the other must depend upon the
extent of the market。 The quantity will always be suited with
more or less exactness to the consumption of those who can afford
to pay for it； and the price which they will pay will always be
in proportion to the eagerness of their competition。 It is the
interest of such a sovereign； therefore； to open the most
extensive market for the produce of his country； to allow the
most perfect freedom of commerce； in order to increase as much as
possible the number and the competition of buyers； and upon this
account to abolish； not only all monopolies； but all restraints
upon the transportation of the home produce from one part of the
country to another； upon its exportation to foreign countries； or
upon the importation of goods of any kind for which it can be
exchanged。 It is in this manner most likely to increase both the
quantity and value of that produce； and consequently of his own
share of it； or of his own revenue。
But a company of merchants are； it seems； incapable of
considering themselves as sovereigns； even after they have become
such。 Trade； or buying in order to sell again； they still
consider as their principal business； and by a strange absurdity
regard the character of the sovereign as but an appendix to that
of the merchant； as something which ought to be made subservient
to it； or by means of which they may be enabled to buy cheaper in
India； and thereby to sell with a better profit in Europe。 They
endeavour for this purpose to keep out as much as possible all
competitors from the market of the countries which are subject to
their government； and consequently to reduce； at least； some part
of the surplus produce of those countries to what is barely
sufficient for supplying their own demand； or to what they can
expect to sell in Europe with such a profit as they may think
reasonable。 Their mercantile habits draw them in this manner；
almost necessarily； though perhaps insensibly； to prefer upon all
ordinary occasions the little and transitory profit of the
monopolist to the great and permanent revenue of the sovereign；
and would gradually lead them to treat the countries subject to
their government nearly as the Dutch treat the Moluceas。 It is
the interest of the East India Company； considered as sovereigns；
that the European goods which are carried to their Indian
dominions should be sold there as cheap as possible； and that the
Indian goods which are brought from thence should bring there as
good a price； or should be sold there as dear as possible。 But
the reverse of this is their interest as merchants。 As
sovereigns； their interest is exactly the same with that of the
country which they govern。 As merchants their interest is
directly opposite to that interest。
But if the genius of such a government； even as to what
concerns its direction in Europe； is in this manner essentially
and perhaps incurably faulty； that of its administration in India
is still more so。 That administration is necessarily composed of
a council of merchants； a profession no doubt extremely
respectable； but which in no country in the world carries along
with it that sort of authority which naturally overawes the
people； and without force commands their willing obedience。 Such
a council can command obedience only by the military force with
which they are accompanied； and their government is therefore
necessarily military and despotical。 Their proper business；
however； is that of merchants。 It is to sell； upon their masters'
account； the European goods consigned to them； and to buy in
return Indian goods for the European market。 It is to sell the
one as dear and to buy the other as cheap as possible； and
consequently to exclude as much as possible all rivals from the
particular market where they keep their shop。 The genius of the
administration therefore； so far as concerns the trade of the
company； is the same as that of the direction。 It tends to make
government subservient to the interest of monopoly； and
consequently to stunt the natural growth of some parts at least
of the surplus produce of the country to what is barely
sufficient for answering the demand of the company。
All the members of the administration； besides； trade more
or less upon their own account； and it is in vain to prohibit
them from doing so。 Nothing can be more completely foolish than
to expect that the clerks of a great counting…house at ten
thousand miles distance； and consequently almost quite out of
sight； should； upon a simple order from their masters； give up at
once doing any sort of business upon their own account； abandon
for ever all hopes of making a fortune； of which they have the
means in their hands； and content themselves with the moderate
salaries which those masters allow them； and which； moderate as
they are； can seldom be augmented； being commonly as large as the
real profits of the company trade can afford。 In such
circumstances； to prohibit the servants of the company from
trading upon their own account can have scarce any other effect
than to enable the superior servants； under pretence of executing
their masters' order； to oppress such of the inferior ones as
have had the misfortune to fall under their displeasure。 The
servants naturally endeavour to establish the same monopoly in
favour of their own private trade as of the public trade of the
company。 If they are suffered to act as they could wish； they
will establish this monopoly openly and directly； by fairly
prohibiting all other people from trading in the articles in
which they choose to deal； and this； perhaps； is the best and
least oppressive way of establishing it。 But if by an order from
Europe they are prohibited from doing this； they will；
notwithstanding； endeavour to establish a monopoly of the same
kind； secretly and indirectly； in a way that is much more
destructive to the country。 They will employ the whole authority
of government； and pervert the administration of justice； in
order to harass and ruin those who interfere with them in any
branch of commerce； which by means of agents； either concealed；
or at least not publicly avowed； they may choose to carry on。 But
the private trade of the servants will naturally extend to a much
greater variety of articles than the public trade of the company。
The public trade of the company extends no further than the trade
with Europe； and comprehends a part only of the foreign trade of
the country。 But the private trade of the servants may extend to
all the different branches both of its inland and foreign trade。
The monopoly of the company can tend only to stunt the natural
growth of that part of the surplus produce which； in the case of
a free trade； would be exported to Europe。