The East India Company had recovered from their period of desolation. They had set their house in order, had been granted a further extension of their monopoly, were opening up a good trade with China, and had received fresh capital for their operations in wider spheres. The trade of the East was practically now in the hands of England, the Dutch East India Company having suffered very heavily, and the French East India Company after languishing had come to an end in 1790. Although there had been formed the first Danish East India Company as far back as 1612, and a Spanish Royal Company for trading with the Philippines incorporated in 1733 and an Ostend East India Company incorporated by the Emperor of Austria in 1723; yet the last-mentioned had become bankrupt in 1784, and now the English East India Company, after many vicissitudes, was left practically the sole surviving trading power in the Orient.

Under Pitt’s Act the directors of the English Company were allowed to superintend their shipping and matters of commerce as before, yet the Board of Control exercised its influence both in England and India. Each year the Company settled the number of ships to be built and their sizes. For instance, in 1784, as they saw that at least four more ships would be required, they ordered six to be built. The keels were to be laid down within six months, and the ships were to be launched within twelve months of the laying of the keel. The following year they decided to have three sets of shipping with about thirty ships in each class, so leave was given for eight ships to be built. Tenders were therefore advertised for in January 1786, much to the indignation of the owners, who complained that this advertisement was directed against their interests. They denied that hitherto their rates for freight had been exorbitant, and protested that they had embarked on immense shipbuilding programmes expressly for the Company’s benefit. The Company therefore replied, inviting them to send in tenders, which was done, the same rate being offered as in the preceding season—viz. £26 a ton to China direct, £27 for coast and China, Bombay £28, coast and bay £29. On 9th June of that year a tender was offered the Company to build a 1000-ton ship at £22 a ton for the first two voyages, and £20 for the third and fourth voyages.

Up till the year 1789 the size of the Company’s recent big ships had been from 750 to 800 tons. But in this year it was decided to build five ships of from 1100 to 1200 tons. The following May the Court resolved that from past experience ships could quite well make three voyages without stripping off their sheathing. And, further, those ships which had been accustomed to make the fourth trip their repairing voyage might with perfect safety perform even six voyages. A by-law of 1773 had restricted the employment of ships for more than four voyages, but this was now modified, and instead of four voyages agreements were entered into with the owners for the ships to run six.

It was decided also by the Company in the year 1789 to allow the commanders and officers of their ships to fill, freight free, all such outward tonnage as might be unoccupied by the Company, and to allow the Company’s servants and merchants residing under the Company’s protection in India to fill up such homeward tonnage as might be unoccupied by the Company, at a reasonable freight. When we come to the year 1793 we have to deal with an important Act of the reign of George III., which had far-reaching effects. The Company’s charter was extended until 1814, but provision was made for opening up the Indian trade to private individuals, and thus the long-lived monopoly of the Company was doomed. At length the agitations of the Liverpool and Bristol shipowners to be allowed to participate in the East India trade were to have some sort of effect, though it was far from what was desired. However, one of the conditions of the renewal of the Company’s exclusive privilege under this Act was that any of the Company’s civil servants in India, and the free merchants living in India under the Company’s protection, might be permitted to send to Europe on their own account and risk in the Company’s ships all kinds of Indian goods with the exception of calicoes, dimities, muslins and other piece-goods. And “for insuring to private merchants and manufacturers the certain and ample means of exporting their merchandize to the East Indies, and importing the returns for the same, and the other goods, wares and merchandize, allowed by this Act, at reasonable rates of freight,” the Company was ordered to set apart at least 3000 tons of shipping every year. The charge was to be £5 a ton on the outward voyage in times of peace, and. £15 homeward. But in the time of war the rates should be increased if the Board of Control approved. It was further stipulated that his Majesty’s subjects might be allowed to export from England to India any produce or manufactured goods except military stores, ammunition, masts, spars, cordage, pitch, tar and copper. But in all cases of exports and imports in this Anglo-Indian trade the goods must travel in the Company’s ships. These vessels, provided under the Act, thus became known as “extra East Indiamen,” and sometimes in reading books of voyages and travel of this period you will find the narrator informing the reader that he travelled to the East on board the “extra” East Indiaman so-and-so. It may be stated at once that though the Act was obeyed, it produced little result, for considering that the Company still had such a powerful monopoly of trade in the East, it was quite impossible for home merchants to compete with such a corporation. Most manufacturers and merchants declined to avail themselves of this privilege, full well realising beforehand how useless it would be. However, the Company fulfilled their obligation to provide this additional tonnage, though it entailed a heavy expenditure without much benefit to the public. The people who benefited most were the servants of the Company, who, being homeward bound, were able to bring back to England Indian produce that would find a ready market here.

In the year 1793 the Company had only thirty-six vessels of 1200 tons each and forty of 800 tons each. This of course represented the whole of the British shipping trading to the East. Some idea of the shipbuilding programmes of the next few years may be gathered from the following facts, bearing in mind that the Company were trading to China as well as to India, and that both big and moderate-sized ships were deemed necessary. Thus in October of 1793 the Court decided that sixteen ships of from 700 to 800 tons were necessary, and one of 1200 tons for the annual imports from India in their regular commerce; and that fifteen large ships of 1200 tons would be required for imports from China. When a ship became worn out by age, accident or inability, an advertisement was published, describing the size of the ship required, inviting tenders and specifying the rate of freight to be paid for six voyages, the ship to be commanded by the captain of the ship whose bottom was worn out. In December of the following year it was resolved that ships of 1400 tons were the most suitable for the Company’s trade to China, but that these ships should be tendered at 1200 tons only. So also the regular ships (as distinct from the extra East Indiamen) which brought home their rich cargoes from Bengal and Madras were not to exceed 820 tons and to be chartered at 799 tons. It was further settled that ships of from 480 to 520 tons were the most suitable craft for bringing home what were known as “gruff” goods—that is, cargoes of Indian goods consisting of such raw materials as cotton, rice, sugar, pepper, hemp and saltpetre. The silks, muslins, tea and fine goods were carried in the Company’s larger ships, which carried also the passengers. From the latter quite a large revenue was obtained, as soon as the Company’s rule in India became fully established.

The public were still very jealous of the Company’s private monopoly, and the country was deluged by pamphleteers and tractarians giving vent to this indignation. However, some benefit had been obtained by a reduction in the freights, and it was brought about in the following manner. The suggestion was made that great advantages would result if India-built ships were employed by the Company for the spare freight which was lying ready for shipment to Europe. English oak was getting scarcer, and therefore dearer, and could ill be spared so long as the Royal Navy continued to be wooden walls: whereas out in India the Company owned inexhaustible forests. So from the year 1795 India-built ships were for the first time allowed to take exports and imports. They were commonly known as “country-built” ships, and in the year mentioned twenty-seven of these craft were despatched from India with cargoes of rice. The cost of engaging these ships was at £16 a ton for rice and other deadweight goods and £20 a ton for light goods, the ships to arrive and discharge in the Thames. As a result a saving in one season alone was made of £183,316 in respect of freights. But there occurred some keen disappointment to the owners of these India-built ships. The arrangement had been that, having delivered the goods mentioned in the Thames, they should be allowed to take back to India whatever merchandise they cared to put aboard. Many of these ships had been built as a speculation, their owners believing that they would be taken into the Company’s regular service and so be employed permanently. Notwithstanding that they had been warned against any such supposition, it came as a bitter grief to them when they realised that after the Company’s immediate requirements were completed the services of these ships were no longer required; but for all that the day was now not far distant when trade to India was to be thrown open altogether. It is the last straw which breaks the camel’s back, and the load which had been accumulating ever since the year 1600 was soon to reach the point when something would have to give way.

It should be explained that this was one of the most critical periods in the whole of England’s naval chronicle and therefore of her very existence. The Battle of the Glorious First of June had been fought in 1794, and in this same year Martinique had been captured from the French. The year 1795 was to be even still more replete with naval doings. Ships and men were required as they had never been wanted before, and it was just in this respect that the existence of the East India Company was of the greatest direct benefit to the country and the navy. It must always be to its honour that the Company which had for so long enjoyed the privilege of the Indian monopoly was on this especial occasion to have the privilege of assisting the nation in a most valuable manner. At the opening of the year France possessed advantages which she had never previously enjoyed. She had made peace with Prussia, she had reduced Holland to submission and made a treaty with the latter, the result of which was that the Dutch fleet of about 120 ships was placed at France’s disposal. These were well-built craft, manned by excellent crews who were seamen to their finger-tips. As against this, England was in a condition of isolation and there was a tremendous amount of work to be done and too few ships at hand. For Brest had to be watched, and the Mediterranean fleet had to look after the French based on Toulon. Admiral Duncan had to be sent across the North Sea to prevent any Dutch ships from emerging out of the Texel, but in the southern part of the world something much more historic was destined to occur, for the Cape of Good Hope was captured from the Dutch, and just at the time when our success hung in the balance a strong squadron of East Indiamen arrived with a reinforcement of British troops. The result was that against this force the Dutch could no longer stand. The Dutch settlement (and incidentally a brig belonging to the Dutch East India Company) now became British.

Never had the East India Company been more useful to the navy than in this year. Ships and seamen cannot be got by the mere signing of documents unless they already exist, and it was lucky for the nation that such fine, stout craft, accustomed to long voyages and fighting, manned with such able crews, should already be at hand under the East India Company. At the time of which we speak no fewer than six of their finest vessels were taken into the nation’s service straight away. Eight others which had not quite finished building were also assigned to the Government. In addition to these fourteen handsome craft, the Court of Directors also decided on the 13th of March to raise 3000 men at their own cost for the Royal Navy. This meant a loss of £57,000, but the nation needed it and the Company did their duty. During the ensuing July the Company further decided that fourteen East Indiamen should be placed at the disposal of the Government in September ready to carry troops across the ocean—a work for which they were extremely well fitted—and we have just seen to what advantage this was done. England at this time was distressed by the scarcity of corn, but in order to relieve this distress in some measure large quantities of rice were brought home by twenty-seven ships which the Company purposely added to their fleet for the emergency, and these were the India-built ships of which we spoke just now. Thus in more ways than one, but certainly to the utmost of their ability, the East India Company had come to Britain’s aid when she was passing through a time of great crisis.

During this year the seas which wash the Indian coast were really unsafe to merchantmen by reason of the presence of both French and Dutch cruisers and privateers. The British naval strength in those waters was very inadequate, and we had suffered some naval disasters which were neither a credit to our seamanship nor likely to maintain our prestige as gallant sea-fighters. The whole of the Bay of Bengal was being scoured by French men-of-war ready to fall upon any merchant craft that dared show herself. The privateers were both numerous, well manned, well armed, well commanded and very fast sailers. The consequence was that the East Indiamen never completed their voyages without having some excitement. Nor were pirates exterminated; especially along the Malabar coast, where they had many fastnesses, their strongholds being protected by forts. These men feared nothing, and had actually come out and defeated English, French and Dutch men-of-war that had been especially sent out to punish them, in some cases even capturing their enemy’s ships. A French 40-gun frigate had been compelled to haul down her colours to these robbers of the sea: one of the East India Company’s ships, armed with twenty guns, had also been taken after a fair fight, and three Dutch men-of-war. For some years they were crushed by the wholesome effect of a regular expedition which the English had sent against them, but after a few years they broke out again in their piracy and by the year 1798 they were freely capturing European ships.

On at least one occasion, however, they made a serious mistake, which might have been even still more grievous for them but for a piece of luck. It happened that H.M.S. Centurion, a 50-gun frigate, was cruising in the neighbourhood, and her the pirates mistook for a merchantman, for the East Indiamen were very similar in appearance to the frigates of the Royal Navy. One of the favourite devices of these rovers was to creep up under cover of darkness and wedge the rudder of the ship they intended to attack, their victim being thus rendered unable to manoeuvre. In the present instance they had succeeded in carrying out this tactic to the Centurion, and then surrounded the ship and began their attack. The frigate was certainly surprised, but she soon had her guns loaded and brought them to bear on the pirates, and so punished them with a hot fire, which had not been expected, that they were glad to take to flight. It was only the fact of the wedged rudder which prevented the Centurion from being steered in pursuit and capturing their craft. However, it was a lesson to them in the future, and they attacked only when they were certain of their victim.

Of the privateers which hung about in Indian waters, one of the most notorious was the Malartic, which had captured two of the East Indiamen, Raymond and Woodcot, of 793 and 802 tons respectively. Whenever it was known that this ship was in the offing, no merchantman dared put to sea. She eventually captured the Princess Royal, an 805 tonner, and other East Indiamen, but was herself finally taken by the Company’s ship Phoenix. So great was the relief occasioned by this deliverance that Captain Moffat, the Phoenix’s commander, was afterwards publicly presented with a sword of honour. But an even more dangerous privateer was the Confiance. This was a very beautiful ship, and the envy of every captain who set eyes on her. Captain Eastwick, who knew her well, and to whose account I am indebted, described her as follows:—“She sat very low upon the water, and had black sides with yellow moulding posts, and a French stern all black. She carried a red vane at her maintopgallant masthead, very square yards and jaunt masts, upright and without the smallest rake either forward or aft. Her sails were all cut French fashion, and remarkable, having a great roach and steering sail, very square. There was not a ship in those seas that she could not overtake or sail away from. It was the custom of her commander, Captain Sourcouff, to ply his crew with liquor, and they always fought with the madness of drink in them.”

It was this ship which attacked the East Indiaman Kent, and after a heavy engagement killed or wounded no fewer than sixty of the merchantman’s crew, with the result that the latter was forced to haul down her flag. When the news of this occurrence reached Calcutta, two of the Company’s frigates were sent in pursuit of the privateer, and both coming up with her began to attack with such determination that it was certain the Confiance would have to yield. This, however, she refused to do, and though she had only twenty-two guns, her captain fought his ship with great gallantry, and even though his losses were necessarily great, he was able at the end to escape by the speed of his ship. The Kent, however, was retaken from the clutches of the Confiance and brought into Calcutta, and a few years later the Confiance herself was also captured. And you may imagine with what joy the news of her capture was received when it was reckoned that within one single twelvemonth not less than £2,000,000 worth of British shipping had been captured or sunk by the French privateers or men-of-war.

And there was the curious incident of the Lord Eldon being nearly captured right on the doorstep, so to speak, of her home. This ship was an East Indiaman outward bound to India. At the moment of which we are speaking she had backed her sails and was lying off the Needles hove-to, as she awaited some passengers who had been delayed in joining her. But whilst she was thus hove-to a sea fog suddenly came down. Not far off was a French privateer hovering about, and this was the chance of a century. Under cover of this fog he approached the East Indiaman unobserved, so that he came right alongside. When the men on board the Lord Eldon discovered this big ship close up to them in the haze they were alarmed, but not for the reason that you might suppose. It did not occur to them that she was a privateer, but they assumed she was one of the King’s ships and was now about to impress the East Indiaman’s crew into the navy in the manner that we saw in an earlier chapter. As the crew had no desire to come under impressment, they at once hid, with the result that the privateer’s men had no difficulty in coming on board the Lord Eldon. The captain was below at the time, and hearing a noise and clamour came on deck to see what it was all about: and then to his amazement found that his ship was in the hands of the enemy. However, he was not one easily to be daunted, even by such a surprise as this. His life was made up of things unexpected, and knowing that his men were well drilled he called to them to repel boarders. They at once responded to the command and came out from their hiding-places, and after a sharp fight drove the invaders overboard. One Frenchman had even got possession of the Lord Eldon’s wheel, but the East Indiaman’s captain killed him with his own hand, cutting off his head with one stroke of the sword. In a very short time the privateer, who was now more surprised than the crew of the merchant ship, hurriedly made sail and disappeared into the fog. The incident well shows the fighting efficiency of the commanders and men of the Company’s vessels at this period.

During the early part of the eighteenth century about a dozen or fifteen of the Company’s ships would sail to the East Indies from London, but this average gradually rose till, about the year 1779, there were about twenty vessels going out each year. But thereafter the numbers increased to such an extent that in some years there were as many as thirty or forty: and in the year 1795 as many as seventy-six did the voyage. After that date the numbers became again normal, so that up to about the end of 1810 the average was more like forty or fifty. But even this meant a great deal of trade from which the country and Company were to benefit largely.