government　should　be　paid；　and　their　bond…debts　be　reduced　to
  fifteen　hundred　thousand　pounds；　they　might　then；　and　not　till
  then；　divide　eight　per　cent　upon　their　capital；　and　that　whatever
  remained　of　their　revenues　and　net　profits　at　home　should　be
  divided　into　four　parts；　three　of　them　to　be　paid　into　the
  exchequer　for　the　use　of　the　public；　and　the　fourth　to　be
  reserved　as　a　fund　either　for　the　further　reduction　of　their
  bond…debts；　or　for　the　discharge　of　other　contingent　exigencies
  which　the　company　might　labour　under。　But　if　the　company　were　bad
  stewards；　and　bad　sovereigns；　when　the　whole　of　their　net　revenue
  and　profits　belonged　to　themselves；　and　were　at　their　own
  disposal；　they　were　surely　not　likely　to　be　better　when
  three…fourths　of　them　were　to　belong　to　other　people；　and　the
  other　fourth；　though　to　be　laid　out　for　the　benefit　of　the
  company；　yet　to　be　so　under　the　inspection　and　with　the
  approbation　of　other　people。
  It　might　be　more　agreeable　to　the　company　that　their　own
  servants　and　dependants　should　have　either　the　pleasure　of
  wasting　or　the　profit　of　embezzling　whatever　surplus　might　remain
  after　paying　the　proposed　dividend　of　eight　per　cent　than　that　it
  should　come　into　the　hands　of　a　set　of　people　with　whom　those
  resolutions　could　scarce　fail　to　set　them；　in　some　measure；　at
  variance。　The　interest　of　those　servants　and　dependants　might　so
  far　predominate　in　the　court　of　proprietors　as　sometimes　to
  dispose　it　to　support　the　authors　of　depredations　which　had　been
  committed　in　direct　violation　of　its　own　authority。　With　the
  majority　of　proprietors；　the　support　even　of　the　authority　of
  their　own　court　might　sometimes　be　a　matter　of　less　consequence
  than　the　support　of　those　who　had　set　that　authority　at　defiance。
  The　regulations　of　1773；　accordingly；　did　not　put　an　end　to
  the　disorders　of　the　company's　government　in　India。
  Notwithstanding　that；　during　a　momentary　fit　of　good　conduct；
  they　had　at　one　time　collected　into　the　treasury　of　Calcutta　more
  than　three　millions　sterling；　notwithstanding　that　they　had
  afterwards　extended；　either　their　dominion；　or　their
  depredations；　over　a　vast　accession　of　some　of　the　richest　and
  most　fertile　countries　in　India；　all　was　wasted　and　destroyed。
  They　found　themselves　altogether　unprepared　to　stop　or　resist　the
  incursion　of　Hyder　Ali；　and；　in　consequence　of　those　disorders；
  the　company　is　now　（1784）　in　greater　distress　than　ever；　and；　in
  order　to　prevent　immediate　bankruptcy；　is　once　more　reduced　to
  supplicate　the　assistance　of　government。　Different　plans　have
  been　proposed　by　the　different　parties　in　Parliament　for　the
  better　management　of　its　affairs。　And　all　those　plans　seem　to
  agree　insupposing；　what　was　indeed　always　abundantly　evident；
  that　it　is　altogether　unfit　to　govern　its　territorial
  possessions。　Even　the　company　itself　seems　to　be　convinced　of　its
  own　incapacity　so　far；　and　seems；　upon　that　account；　willing　to
  give　them　up　to　government。
  With　the　right　of　possessing　forts　and　garrisons　in　distant
  and　barbarous　countries　is　necessarily　connected　the　right　of
  making　peace　and　war　in　those　countries。　The　joint　stock
  companies　which　have　had　the　one　right　have　constantly　exercised
  the　other；　and　have　frequently　had　it　expressly　conferred　upon
  them。　How　unjustly；　how　capriciously；　how　cruelly　they　have
  commonly　exercised　it；　is　too　well　known　from　recent　experience。
  When　a　company　of　merchants　undertake；　at　their　own　risk　and
  expense；　to　establish　a　new　trade　with　some　remote　and　barbarous
  nation；　it　may　not　be　unreasonable　to　incorporate　them　into　a
  joint　stock　company；　and　to　grant　them；　in　case　of　their　success；
  a　monopoly　of　the　trade　for　a　certain　number　of　years。　It　is　the
  easiest　and　most　natural　way　in　which　the　state　can　recompense
  them　for　hazarding　a　dangerous　and　expensive　experiment；　of　which
  the　public　is　afterwards　to　reap　the　benefit。　A　temporary
  monopoly　of　this　kind　may　be　vindicated　upon　the　same　principles
  upon　which　a　like　monopoly　of　a　new　machine　is　granted　to　its
  inventor；　and　that　of　a　new　book　to　its　author。　But　upon　the
  expiration　of　the　term；　the　monopoly　ought　certainly　to
  determine；　the　forts　and　garrisons；　if　it　was　found　necessary　to
  establish　any；　to　be　taken　into　the　hands　of　government；　their
  value　to　be　paid　to　the　company；　and　the　trade　to　be　laid　open　to
  all　the　subjects　of　the　state。　By　a　perpetual　monopoly；　all　the
  other　subjects　of　the　state　are　taxed　very　absurdly　in　two
  different　ways：　first；　by　the　high　price　of　goods；　which；　in　the
  case　of　a　free　trade；　they　could　buy　much　cheaper；　and；　secondly；
  by　their　total　exclusion　from　a　branch　of　business　which　it　might
  be　both　convenient　and　profitable　for　many　of　them　to　carry　on。
  It　is　for　the　most　worthless　of　all　purposes；　too；　that　they　are
  taxed　in　this　manner。　It　is　merely　to　enable　the　company　to
  support　the　negligence；　profusion；　and　malversation　of　their　own
  servants；　whose　disorderly　conduct　seldom　allows　the　dividend　of
  the　company　to　exceed　the　ordinary　rate　of　profit　in　trades　which
  are　altogether　free；　and　very　frequently　makes　it　fall　even　a
  good　deal　short　of　that　rate。　Without　a　monopoly；　however；　a
  joint　stock　company；　it　would　appear　from　experience；　cannot　long
  carry　on　any　branch　of　foreign　trade。　To　buy　in　one　market；　in
  order　to　sell；　with　profit；　in　another；　when　there　are　many
  competitors　in　both；　to　watch　over；　not　only　the　occasional
  variations　in　the　demand；　but　the　much　greater　and　more　frequent
  variations　in　the　competition；　or　in　the　supply　which　that　demand
  is　likely　to　get　from　other　people；　and　to　suit　with　dexterity
  and　judgment　both　the　quantity　and　quality　of　each　assortment　of
  goods　to　all　these　circumstances；　is　a　species　of　warfare　of
  which　the　operations　are　continually　changing；　and　which　can
  scarce　ever　be　conducted　successfully　without　such　an　unremitting
  exertion　of　vigilance　and　attention　as　cannot　long　be　expected
  from　the　directors　of　a　joint　stock　company。　The　East　India
  Company；　upon　the　redemption　of　their　funds；　and　the　expiration
  of　their　exclusive　privilege；　have　right；　by　Act　of　Parliament；
  to　continue　a　corporation　with　a　joint　stock；　and　to　trade　in
  their　corporate　capacity　to　the　East　Indies　in　common　with　the
  rest　of　their　fellow…subjects。　But　in　this　situation；　the
  superior　vigilance　and　attention　of　private　adventurers　would；　in
  all　probability；　soon　make　them　weary　of　the　trade。
  An　eminent　French　author；　of　great　knowledge　in　matters　of
  political　economy；　the　Abbe　Morellet；　gives　a　list　of　fifty…five
  joint　stock　companies　for　foreign　trade　which　have　been
  established　in　different　parts　of　Europe　since　the　year　1600；　and
  which；　according　to　him；　have　all　failed　from　mismanagement；
  notwithstanding　they　had　exclusive　privileges。　He　has　been
  misinformed　with　regard　to　the　history　of　two　or　three　of　them；
  which　were　not　joint　stock　companies　and　have　not　failed。　But；　in
  compensation；　there　have　been　several　joint　stock　companies　which
  have　failed；　and　which　he　has　omitted。
  The　only　trades　which　it　seems　possible　for　a　joint　stock
  company　to　carry　on　successfully　without　an　exclusive　privilege
  are　those　of　which　all　the　operations　are　capable　of　being
  reduced　to　what　is　called　a　Routine；　or　to　such　a　uniformity　of
  method　as　admits　of　little　or　no　variation。　Of　this　kind　is；
  first；　the　banking　trade；　secondly；　the　trade　of　insurance　from
  fire；　and　from　sea　risk　and　capture　in　time　of　war；　thirdly；　the
  trade　of　making　and　maintaining　a　navigable　cut　or　canal；　and；
  fourthly；　the　similar　trade　of　bringing　water　for　the　supply　of　a
  great　city。
  Though　the　principles　of　the　banking　trade　may　appear
  somewhat　abstruse；　the　practice　is　capable　of　being　reduced　to
  strict　rules。　To　depart　upon　any　occasion　from　those　rules；　in
  consequence　of　some　flattering　speculation　of　extraordinary　gain；
  is　almost　always　extremely　dangerous；　and　frequently　fatal；　to
  the　banking　company　which　attempts　it。　But　the　constitution　of
  joint　stock　companies　renders　them　in　general　more　tenacious　of
  established　rules　than　any　private　copartnery。　Such　companies；
  therefore；　seem　extremely　well　fitted　for　this　trade。　The
  principal　banking　companies　in　Europe；　accordingly；　are　joint
  stock　companies；　many　of　which　manage　their　trade　very
  successfully　without　any　exclusive　privilege。　The　Bank　of　England
  has　no　other　exclusive　privilege　except　that　no　other　banking
  company　in　England　shall　consist　of　more　than　six　persons。　The
  two　banks　of　Edinburgh　are　joint　stock　companies　without　any
  exclusive　privilege。
  The　value　of　the　risk；　either　from　fire；　or　from　loss　by
  sea；　or　by　capture；　though　it　cannot；　perhaps；　be　calculated　very
  exactly；　admits；　however；　of　such　a　gross　estimation　as　renders
  it；　in　some　degree；　reducible　to　strict　rule　and　method。　The
  trade　of　insurance；　therefore；　may　be　carried　on　successfull