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ONE:But we have far overshot the contemporary history of Bengal. The Presidency thought it had greatly benefited by the reforms of Clive; yet it had since been called upon to furnish large supplies of men and money to support the unprincipled transactions at Madras, which we have briefly detailed, and the India House, instead of paying the usual dividends, was compelled to reduce them. Further, a terrible famine devastated Bengal, and more than half the population are said to have been swept away. This state of things compelled Parliament to turn its attention to India. General Burgoyne, now active in the Opposition, moved and carried, on the 13th of April, 1772, a resolution for the appointment of a select Committee of thirteen members to inquire into Indian affairs; and Burgoyne, who was extremely hostile to Clive, was appointed chairman. The committee went actively to work, and presented two reports during the Session. After Parliament met again in November, Lord North, who had conversed with Clive during the recess, called for and carried a resolution for another and this time a secret committee. As the Company was in still deeper difficulties, and came to Lord North to borrow a million and a half, he lent them one million four hundred thousand pounds, on condition that they should keep their dividends at six per cent. until this debt was repaid, and afterwards at eight per cent. He at the same time relieved them from the payment of the four hundred thousand pounds per annum, imposed by Lord Chatham, for the same period. This was done in February, 1773, and in April he brought in a Bill at the suggestion of Clive, who represented the Court of Proprietors at the India House as a regular bear-garden, on account of men of small capital and smaller intelligence being enabled to vote. By North's Bill it was provided that the Court of Directors should, in future, instead of being annually elected, remain in office four years; instead of five hundred pounds stock qualifying for a vote in the Court of Proprietors, one thousand pounds should alone give a vote; three thousand pounds, two votes; and six thousand pounds, three votes. The Mayor's Court in Calcutta was restricted to petty cases of trade; and a Supreme Court was established, to consist of a Chief Justice and three puisne judges, appointed by the Crown. The Governor-General of Bengal was made Governor-General of India. These nominations were to continue for five years, and then to return to the Directors, but subject to the approval of the Crown. Whilst the Bill was in progress, the members of the new Council were named. Warren Hastings was appointed the first Governor-General; and in his Council were Richard Barwell, who was already out there, General Clavering, the Honourable Colonel Monson, and Philip Francis.[323] Another clause of Lord North's Bill remitted the drawback on the Company's teas for export to America, an act little thought of at the time, but pregnant with the loss of the Transatlantic colonies. By these "regulating acts," too, as they were called, the Governor-General, members of Council, and judges, were prohibited from trading, and no person in the service of the king or Company was to be allowed to receive presents from native princes, nabobs, or their ministers or agents. Violent and rude, even, was the opposition raised by the India House and all its partisans to these two Bills.

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