On this double foundation the government was happily settled. The minds of the natives
were quieted. The Company's territories and views were circumscribed. The arm of force
was put out of sight. The imperial name covered everything. The power of the purse was in
the hand of the Company. The power of the sword was in effect so, as they contracted for
the maintenance of the army. The Company had a revenue of a million and a half. The
Nabob had, indeed, fallen from any real and effective power, yet the dignity of the court
was maintained. The prejudices and interests of the Mahomedans, and particularly of their
nobility, who had suffered more by this great revolution even than the old inhabitants of the
country, were consulted; for by this plan a revenue of 500,000l. was settled on the
viceroyalty, which was thus enabled to provide in some measure for those great families.
The Company likewise, by this plan, in order to enjoy their revenues securely, and to avoid
envy and murmur, put them into the hands of Mahomed Reza Khân, whom Lord Clive
found in the management of affairs, and did not displace; and he was now made deputy-
steward to the Company, as he had been before lieutenant-viceroy to the Nabob. A British
Resident at Moorshedabad was established as a control. The Company exercised their
power over the revenue in the first instance through the natives, but the British Resident
was in reality the great mover.
If ever this nation stood in a situation of glory throughout Asia, it was in that moment. But,
as I have said, some material errors and mistakes were committed. After the formation of
this plan, Lord Clive unfortunately did not stay long enough in the country to give
consistency to the measures of reformation he had undertaken, but rapidly returned to
England; and after his departure, the government that continued had not vigor or authority
to support the settlement then made, and considerable abuses began to prevail in every
quarter. Another capital period in our history here commences. Those who succeeded
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