66 CONSOLIDATION OF THE ENGLISH COMPANY

of treating their acquisitions, not as grants held by traders on sufferance from the nearest Oriental poten- tate, but as possessions held under direct or delegated authority from the sovereign European power. They saw that they could only maintain their ground by imitating this example; and henceforward their estab- lishments were more and more framed and directed upon this model. But in London the enormous profits of the Company were exciting jealousy and stimulating energetic at- tempts to break in upon such a magnificent treasure- house. Sir Josiah Child, who then ruled their affairs autocratically, had enlisted the favour and support of the court by presents to King James II and to all who had influence at Whitehall. Unluckily, the India House had just set its sails upon the Tory tack when a Prot- estant wind brought over William m, and after the Revolution of 1688 a new Company was formed to com- pete for the next charter upon a remodelled system. In 1693, the old Company's charter was declared void for non-payment of a five per cent, duty laid by the Crown on their capital stock; and it was renewed only upon condition of its being terminable at three years' notice. Then in 1698 Montague, the Chancellor of the Exchequer, being hard pressed for money, passed an Act of Parliament granting a Royal Charter to the new Company, who undertook to lend two millions to the government at eight per cent. The money was subscribed with an eagerness that proved the country's wealth, as well as its confidence in the strength and