eed, the king had the sense to
perceive that England was to be governed only by the man in whom the
nation had confidence.

[Sidenote: East India Company.]

In 1730, Walpole rechartered the East India Company, the most gigantic
monopoly in the history of nations. As early as 1599, an association
had been formed in England for trade to the East Indies. This
association was made in consequence of the Dutch and Portuguese
settlements and enterprises, which aroused the commercial jealousy of
England. The capital was sixty-eight thousand pounds. In 1600, Queen
Elizabeth gave the company a royal charter. By this charter, the
company obtained the right of purchasing land, without limit, in
India, and the monopoly of the trade for fifteen years. But the
company contended with many obstacles. The first voyage was made by
four ships and one pinnace, having on board twenty-eight thousand
pounds in bullion, and seven thousand pounds in merchandise, such as
tin, cutlery, and glass.

During the civil wars, the company's affairs were embarrassed, owing
to the unsettled state of England. On the accession of Charles II.,
the company obtained a new charter, which not only confirmed the old
privileges, but gave it the power of making peace and war with the
native princes of India. The capital stock was increased to one
million five hundred thousand pounds.

Much opposition was made by Bolingbroke and the Tories to the
recharter of this institution; but the ministry carried their point,
and a new charter was granted on the condition of the company paying
to government two hundred thousand pounds, and reducing the interest
of the government debts one per cent. per annum. By this time, the
company, although it had not greatly enlarged its jurisdiction in
India, had accumulated great wealth. Its powers and possessions will
be more fully treated when the victories of Clive shall be presented.

About this time, the Duke of Newcastle came into the cabinet whose
future administration will form the subject of a separate chapter.

[Sidenote: Resignation of Townsend.]

In 1730 also occurred the disagreement between Walpole and Lord
Townsend, which ended in the resignation of the latter, a man whose
impetuous and frank temper ill fitted him to work with so cautious and
non-committal a statesman as his powerful rival. He passed the evening
of his days in rural pursuits and agricultural experiments, keeping
open house, devoting himself to his