between this country and that, lest the same principle may be extended to taxing them. The mutiny act was likewise framed in a hurry, at the end of a session, first framed by Colonel Robertson the quarter-master-general in America, and then accommodated to the minds of the merchants here. It was enacted only for two years, and expires this March. I have therefore written to Lord Barrington to request him to give it, in every respect, the fullest consideration, in order to see him afterwards and know his sentiments as to what regards the war department.

As to that which regards the existence of government, after a great deal of painful consideration on so disagreeable a subject, I have nothing to submit to your Lordship, except what I took the liberty to say to the King this morning; namely, that I hoped both he and parliament would distinguish between New York and America. But all that I have to say on this head is so much better expressed in a letter from Mr. Delaney ('), the author of the American pamphlet to which your Lordship did so much honour last session, than in any words of my own, that I beg to refer you to that, and enclose it with the other papers,

with that view.

We had a council on Wednesday night at the President's; who has brought some decision

(1) General Oliver Delaney. The pamphlet was entitled, "Considerations on the Propriety of imposing Taxes on the British Colonies."

amongst us, which I hope will hold us till the 14th. The same thing was proposed and approved of there. I took the opportunity of mentioning to the Lords there the New York petition and the difficulty of the lords of trade as to presenting it. No decided opinion was come to, on account of your Lordship's absence; but it seemed the opinion of every lord present, that it deserved no notice except Mr. Grenville moved for it. I have the honour to be, with the greatest esteem,

Your Lordship's most obliged servant,

I HAVE many acknowledgments to offer you for the trouble your Lordship is so good as to take in keeping me informed of what is passing.

The advices from America afford unpleasing views. New York has drunk the deepest of the baneful cup of infatuation, but none seem to be quite sober and in full possession of reason. It is a literal truth to say that the stamp act, of most unhappy memory, has frightened those irritable and umbrageous people quite out of their senses. I foresee that, determined not to listen to their real friends, a little more frenzy and a little more time

will put them into the hands of their enemies. As to the New York petition, I am clearly of opinion that it ought to be laid before the House, and not be smothered in the hands of the King's servants; from the latter of which (were it to happen) much advantage would be taken against government. I am, with truest esteem, my dear Lord,

Your Lordship's most faithful and

affectionate humble servant,

CHATHAM.

My gout still hangs; but I live in hope.

THE DUKE OF GRAFTON TO THE EARL OF CHATHAM.

Grosvenor Square, February 8, 1767.

MY DEAR LORd,

I AM not without hopes that this letter may meet your Lordship on your journey to London; where, give me leave to say, your appearance was never so much wanted as at this time. There is no interpretation that the ill-wishers of the present system do not endeavour to give to your absence; and I am sorry to say that they succeed so far as to make every one feel the languor under which every branch of the administration labours from it.

My Lord Chancellor, the Lord President, and myself, have within this day or two conversed

a good deal on the consequences it may bring on; and as much as we are acquainted with your Lordship's zeal in the cause you have so nobly undertaken, yet are we most thoroughly convinced that your presence is absolutely necessary to give dignity to the administration and to carry through this affair (the most important of all) of the East India Company, in which they all think that there is no stirring without your assistance and concurrence; and on my part I am ready and desirous to declare, that whatever shall appear to you to be the most eligible mode to terminate it, that same shall I most thoroughly join in. Not that I imagine any present difference of opinion on the subject between us, but meaning only to observe, that if there should, I should frankly open to your Lordship my reasons, and then be ready to fall into the measures which your great experience and ability will always call upon me to prefer to all others.

Since the time of my writing last to your Lordship I have had no sort of intercourse with, or intelligence from, any one concerned in the East India direction, until the night before last; when I received a note from the East India House, that the chairman and deputy would wait on me in the morning. They came accordingly yesterday at ten o'clock, and opened their discourse by telling me that they came authorised by their treasury committee to lay before me the ideas on which they thought the revenues, &c., in the East Indies might be terminated with mutual advantage to the

public and the Company; desiring me to communicate them to the principal of his Majesty's servants. Before they opened the contents of the paper (a copy of which I enclose (1)), I observed to them, that it was my duty certainly to receive their ideas and to communicate them to the cabinet; which I was glad to express to them, before I was

(')"East India House.

"At a Committee of Treasury, the 6th of February, 1767. "The committee having already offered to the consideration of administration the several articles in which their commerce seems to them to require new regulation and present relief in matters to be submitted to the wisdom of parliament, now beg leave, in hopes of putting an end to all difficulties relative to the acquisitions and possessions in India, to suggest,

"That the late acquisitions, possessions, and revenues, should be annexed, by act of parliament, to the term to be given in the exclusive trade; that if the said possessions, acquisitions, and revenues, should be judged expedient to be annexed to the exclusive trade by act of parliament, the committee humbly hope that the company's term will be extended fifty years from the present time; that the charges of the company's civil and military establishments be defrayed out of the revenues; that a sum be deducted from the next sales at home, in the first instance, sufficient to answer all the company's contingent payments; that a sum also, for profits upon the trade of the company, shall be allowed to the proprietors, and for other purposes, as shall be ascertained and agreed upon hereafter; and that the next remaining surplus be divided between the public and the company, to each a moiety, which is to be paid in such mode or manner as shall be consistent with the interest of both.

"It is also proposed to pay a sum certain of 500,000l. in the course of the year, in consideration of the further term requested in the company's exclusive trade, and that they may be empowered, if necessary, to raise a larger sum for that and other purposes.

"This proposition is made as the basis of a negotiation for settling all matters betwixt the public and the company."