templation, and ripe for the decision, of parliament If the proposal shall be, as I expect, very inadequate, strength will be gained thereby for bringing on the question of right. I have advised Mr. Beckford, by this post, to move to put off the consideration for a fortnight. This delay will give room for the present entangled state of this business to develope itself, and tend to bring it to a clear issue. I live in hopes (and almost live by them) to reach London before that time; where I shall be truly happy to embrace your Lordship, being ever, with truest respect and attachment, my dear Lord, Your Lordship's

most faithful affectionate humble servant, CHATHAM.

THE EARL OF SHELBURNE TO THE EARL OF

MY LORD,

CHATHAM.

Hill Street, February 1, 1767. 4 o'clock, p. m.

As the Duke of Grafton told me he had written. to your Lordship about the chief points depending, I have forborne troubling you upon the same subjects. It is the situation of things in America which makes it necessary now. I shall, however, first say a few words about the East India Company, as the matter of the greatest import.

Soon after I came to town, the chairman and deputy-chairman came to me, to speak about their accounts with the French for prisoners, which are hitherto unpaid. They took occasion, at the same time, to enter into their general situation. They declared they did not think themselves authorised in consequence of it by the general court to do more than to desire of administration certain powers, which are wanted for the better regulation of the Company's affairs in India, and to hear what government may expect for them and for a new charter. Further they did not think themselves authorised to go, without fresh powers; and in their private opinions they did not see how that could be, till some authentic determination was come to, to decide the right; upon which it was well known there were different opinions, not only in the city but in parliament. This was their language to me; to which I returned a very general

answer.

The Chancellor of the Exchequer, whether that they had more confidence in him, or that from a more intimate communication with them he was able to inspire them with his sentiments, has been uniform in believing they would come to government, and with such a proposal as would be approved by parliament. He has gone so far as to declare it as his opinion to the House; upon which, the printing of the papers was stopped, and the stock rose. In the mean time, the directors have said nothing, nor taken any step worth mentioning, and the matter

stands there. Mr. Beckford is at a loss how to prosecute the inquiry in this situation, when the committee meets on Friday. Mr. Sullivan gave me a paper on my coming to town, which he wished me to communicate to your Lordship. He then thought, if such a composition was desired, he could bring the proprietors to propose it to government, without other assistance than the grounds of the proposal. He seems to think the same still, but is not so sanguine; which I am not surprised at, considering the light it stands in to the public at the moment. I take it for granted your Lordship will choose to explain yourself to the Duke of Grafton, in consequence of whatever may occur to you upon it; but it was impossible to write without mentioning the greatest point a nation ever had depending; and that is all I mean.

In regard to America, the enclosed minute from the House of Commons will show your Lordship Mr. Grenville's question. Mr. Townshend answered him, but agreed as to the principle of the stamp act and the duty itself, only the heats which prevailed made it an improper time to press it, and in treating the distinction between external and internal taxes as ridiculous in every body's opinion except the Americans; and, in short, pledged himself to the House to find a revenue ('), if not adequate, (a word Lord George Sackville pressed him with, with a view to pin him down as much as possible,) yet nearly sufficient to answer the (1) See p. 178.

expense, when properly reduced. What he means, I do not conceive. I have always thought the quit rents may be so managed, without having too great a retrospect, as to produce a certain

and I have likewise had reason to think that such a new method of granting lands might be devised, under the direction of my Lord President, as might give infinite satisfaction to America, contribute to the ascertaining property, preventing future suits at law, and in great measure prevent the Indian disturbances, and besides all, incidentally produce a certain revenue, without its being the object; but I do not conceive either of them can possibly take place this year, there not being materials in any office here sufficient to form a final judgment of them. Many of them must come for that purpose from America.

I

I have heard, indeed, from general conversation, that Mr. Townshend has a plan for establishing a board of customs in America, and by a new regu lation of the tea duty here, and some other alterations, to produce a revenue on imports there. am myself in no respect able or sufficiently informed to form a judgment how far this may be likely to answer the end or no; but in many views it appears a matter that will require the deepest consideration, at this time especially. Besides, I believe your Lordship will think the speech I have just mentioned to you is not the way to make any thing go down well in North America.

I thought it necessary to inform your Lordship

thus far of the state of American affairs here, before I came to speak of the actual state of them there. They have universally agreed to the compensation required by parliament to be made to the sufferers. My letter upon that subject in Massachusets Bay has undergone a very free discussion; but they have fully agreed, and the assembly have written me a letter, which I enclose to your Lordship. The governor writes short, but inveighing, in general terms, against the people.

A petition is at the same time come from New York signed by two hundred and forty persons to the House of Commons, and sent to the board of trade to present; who have transmitted it to me, to know the King's pleasure upon it. I likewise find that when the last ships came away the assembly had my letter under consideration; which your Lordship may remember was written after a council upon Sir Henry Moore's and General Gage's accounts of the difficulty made by the assembly to provide the troops with vinegar and other articles, which Sir Jeffrey Amherst's letters assure him they will not comply with, lest they should admit what might hereafter be deemed a precedent for a tax act.

I have only told the merchants, in general, that it was well known some of those who opposed the stamp act opposed it upon very extensive principles, with regard to American trade, upon a supposition that the advantages of it must finally centre with the mother-country; that these objects could never