trading　stock；　and　to　be　subject　to　those　debts　and　losses。　The
  petition　was　too　reasonable　not　to　be　granted。　In　1733；　they
  again　petitioned　the　Parliament　that　three…fourths　of　their
  trading　stock　might　be　turned　into　annuity　stock；　and　only
  one…fourth　remain　as　trading　stock；　or　exposed　to　the　hazards
  arising　from　the　bad　management　of　their　directors。　Both　their
  annuity　and　trading　stocks　had；　by　this　time；　been　reduced　more
  than　two　millions　each　by　several　different　payments　from
  government；　so　that　this　fourth　amounted　only　to　L3；662；784　8s。
  6d。　In　1748；　all　the　demands　of　the　company　upon　the　King　of
  Spain；　in　consequence　of　the　Assiento　contract；　were；　by　the
  Treaty　of　Aix…la…Chapelle；　given　up　for　what　was　supposed　an
  equivalent。　An　end　was　put　to　their　trade　with　the　Spanish　West
  Indies；　the　remainder　of　their　trading　stock　was　turned　into　an
  annuity　stock；　and　the　company　ceased　in　every　respect　to　be　a
  trading　company。
  It　ought　to　be　observed　that　in　the　trade　which　the　South
  Sea　Company　carried　on　by　means　of　their　annual　ship；　the　only
  trade　by　which　it　ever　was　expected　that　they　could　make　any
  considerable　profit；　they　were　not　without　competitors；　either　in
  the　foreign　or　in　the　home　market。　At　Carthagena；　Porto　Bello；
  and　La　Vera　Cruz；　they　had　to　encounter　the　competition　of　the
  Spanish　merchants；　who　brought　from　Cadiz；　to　those　markets；
  European　goods　of　the　same　kind　with　the　outward　cargo　of　their
  ship；　and　in　England　they　had　to　encounter　that　of　the　English
  merchants；　who　imported　from　Cadiz　goods　of　the　Spanish　West
  Indies　of　the　same　kind　with　the　inward　cargo。　The　goods　both　of
  the　Spanish　and　English　merchants；　indeed；　were；　perhaps；　subject
  to　higher　duties。　But　the　loss　occasioned　by　the　negligence；
  profusion；　and　malversation　of　the　servants　of　the　company　had
  probably　been　a　tax　much　heavier　than　all　those　duties。　That　a
  joint　stock　company　should　be　able　to　carry　on　successfully　any
  branch　of　foreign　trade；　when　private　adventurers　can　come　into
  any　sort　of　open　and　fair　competition　with　them；　seems　contrary
  to　all　experience。
  The　old　English　East　India　Company　was　established　in　1600
  by　a　charter　from　Queen　Elizabeth。　In　the　first　twelve　voyages
  which　they　fitted　out　for　India；　they　appear　to　have　traded　as　a
  regulated　company；　with　separate　stocks；　though　only　in　the
  general　ships　of　the　company。　In　1612；　they　united　into　a　joint
  stock。　Their　charter　was　exclusive；　and　though　not　confirmed　by
  Act　of　Parliament；　was　in　those　days　supposed　to　convey　a　real
  exclusive　privilege。　For　many　years；　therefore；　they　were　not
  much　disturbed　by　interlopers。　Their　capital；　which　never
  exceeded　seven　hundred　and　forty…four　thousand　pounds；　and　of
  which　fifty　pounds　was　a　share；　was　not　so　exorbitant；　nor　their
  dealings　so　extensive；　as　to　afford　either　a　pretext　for　gross
  negligence　and　profusion；　or　a　cover　to　gross　malversation。
  Notwithstanding　some　extraordinary　losses；　occasioned　partly　by
  the　malice　of　the　Dutch　East　India　Company；　and　partly　by　other
  accidents；　they　carried　on　for　many　years　a　successful　trade。　But
  in　process　of　time；　when　the　principles　of　liberty　were　better
  understood；　it　became　every　day　more　and　more　doubtful　how　far　a
  Royal　Charter；　not　confirmed　by　Act　of　Parliament；　could　convey
  an　exclusive　privilege。　Upon　this　question　the　decisions　of　the
  courts　of　justice　were　not　uniform；　but　varied　with　the　authority
  of　government　and　the　humours　of　the　times。　Interlopers
  multiplied　upon　them；　and　towards　the　end　of　the　reign　of　Charles
  II；　through　the　whole　of　that　of　James　II　and　during　a　part　of
  that　of　William　III；　reduced　them　to　great　distress。　In　1698；　a
  proposal　was　made　to　Parliament　of　advancing　two　millions　to
  government　at　eight　per　cent；　provided　the　subscribers　were
  erected　into　a　new　East　India　Company　with　exclusive　privileges。
  The　old　East　India　Company　offered　seven　hundred　thousand　pounds；
  nearly　the　amount　of　their　capital；　at　four　per　cent　upon　the
  same　conditions。　But　such　was　at　that　time　the　state　of　public
  credit；　that　it　was　more　convenient　for　government　to　borrow　two
  millions　at　eight　per　cent　than　seven　hundred　thousand　pounds　at
  four。　The　proposal　of　the　new　subscribers　was　accepted；　and　a　new
  East　India　Company　established　in　consequence。　The　old　East　India
  Company；　however；　had　a　right　to　continue　their　trade　till　1701。
  They　had；　at　the　same　time；　in　the　name　of　their　treasurer；
  subscribed；　very　artfully；　three　hundred　and　fifteen　thousand
  pounds　into　the　stock　of　the　new。　By　a　negligence　in　the
  expression　of　the　Act　of　Parliament　which　vested　the　East　India
  trade　in　the　subscribers　to　this　loan　of　two　millions；　it　did　not
  appear　evident　that　they　were　all　obliged　to　unite　into　a　joint
  stock。　A　few　private　traders；　whose　subscriptions　amounted　only
  to　seven　thousand　two　hundred　pounds；　insisted　upon　the　privilege
  of　trading　separately　upon　their　own　stocks　and　at　their　own
  risk。　The　old　East　India　Company　had　a　right　to　a　separate　trade
  upon　their　old　stock　till　1701；　and　they　had　likewise；　both
  before　and　after　that　period；　a　right；　like　that　of　other　private
  traders；　to　a　separate　trade　upon　the　three　hundred　and　fifteen
  thousand　pounds　which　they　had　subscribed　into　the　stock　of　the
  new　company。　The　competition　of　the　two　companies　with　the
  private　traders；　and　with　one　another；　is　said　to　have　well…nigh
  ruined　both。　Upon　a　subsequent　occasion；　in　1730；　when　a　proposal
  was　made　to　Parliament　for　putting　the　trade　under　the　management
  of　a　regulated　company；　and　thereby　laying　it　in　some　measure
  open；　the　East　India　Company；　in　opposition　to　this　proposal；
  represented　in　very　strong　terms　what　had　been；　at　this　time；　the
  miserable　effects；　as　they　thought　them；　of　this　competition。　In
  India；　they　said；　it　raised　the　price　of　goods　so　high　that　they
  were　not　worth　the　buying；　and　in　England；　by　overstocking　the
  market；　it　sunk　their　price　so　low　that　no　profit　could　be　made
  by　them。　That　by　a　more　plentiful　supply；　to　the　great　advantage
  and　conveniency　of　the　public；　it　must　have　reduced；　very　much；
  the　price　of　Indian　goods　in　the　English　market；　cannot　well　be
  doubted；　but　that　it　should　have　raised　very　much　their　price　in
  the　Indian　market　seems　not　very　probable；　as　all　the
  extraordinary　demand　which　that　competition　could　occasion　must
  have　been　but　as　a　drop　of　water　in　the　immense　ocean　of　Indian
  Commerce。　The　increase　of　demand；　besides；　though　in　the
  beginning　it　may　sometimes　raise　the　price　of　goods；　never　fails
  to　lower　it　in　the　run。　It　encourages　production；　and　thereby
  increases　the　competition　of　the　producers；　who；　in　order　to
  undersell　one　another；　have　recourse　to　new　divisions　of　labour
  and　new　improvements　of　art　which　might　never　otherwise　have　been
  thought　of。　The　miserable　effects　of　which　the　company　complained
  were　the　cheapness　of　consumption　and　the　encouragement　given　to
  production；　precisely　the　two　effects　which　it　is　the　great
  business　of　political　economy　to　promote。　The　competition；
  however；　of　which　they　gave　this　doleful　account；　had　not　been
  allowed　to　be　of　long　continuance。　In　1702；　the　two　companies
  were；　in　some　measure；　united　by　an　indenture　tripartite；　to
  which　the　queen　was　the　third　party；　and　in　1708；　they　were；　by
  Act　of　Parliament；　perfectly　consolidated　into　one　company　by
  their　present　name　of　the　The　United　Company　of　Merchants　trading
  to　the　East　Indies。　Into　this　act　it　was　thought　worth　while　to
  insert　a　clause　allowing　the　separate　traders　to　continue　their
  trade　till　Michaelmas　1711；　but　at　the　same　time　empowering　the
  directors；　upon　three　years'　notice；　to　redeem　their　little
  capital　of　seven　thousand　two　hundred　pounds；　and　thereby　to
  convert　the　whole　stock　of　the　company　into　a　joint　stock。　By　the
  same　act；　the　capital　of　the　company；　in　consequence　of　a　new
  loan　to　government；　was　augmented　from　two　millions　to　three
  millions　two　hundred　thousand　pounds。　In　1743；　the　company
  advanced　another　million　to　government。　But　this　million　being
  raised；　not　by　a　call　upon　the　proprietors；　but　by　selling
  annuities　and　contracting　bond…debts；　it　did　not　augment　the
  stock　upon　which　the　proprietors　could　claim　a　dividend。　It
  augmented；　however；　their　trading　stock；　it　being　equally　liable
  with　the　other　three　millions　two　hundred　thousand　pounds　to　the
  losses　sustained；　and　debts　contracted；　by　the　company　in
  prosecution　of　their　mercantile　projects。　From　1708；　or　at　least
  from　1711；　this　company；　being　delivered　from　all　competitors；
  and　fully　established　in　the　monopoly　of　the　English　commerce　to
  the　East　Indies；　carried　on　a　successful　trade；　and　from　their
  profits　made　annually　a　moderate　dividend　to　their　proprietors。
  During　the　French　war；　which　began　in　1741；　the　ambition　of　Mr。
  Dupleix；　the　French　governor　of　Pondicherry；　involved　them　in　the
  wars　of　the　Carnatic；　and　in　the