60 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
which is not so much in advance of the rates of goods as by increase of the bulk of trade.” [1] By 1600 A.D. the merchantile class had become so powerful that “but for the hostility of the city, Charles I could never have been vanquished, and that without the help of the city, Charles II could scarcely have been restored.” [2]
India contributed or rather was made (to)* contribute to the prosperity of England in many ways.
Trade as the augmentation of wealth must be placed in the forefront. Stock quotation is a barometer of business conditions applying the same criterion we will see how much Indian trade was valued in England. “Throughout the (18th) century the Company’s stock was always at premium. In 1720 it was quoted as high as £450, but by 1755 it fell to £148. This figure represented much more nearly its real value. Even supposing the dividend of 10% to be average, this would only mean interest at the moderate rate of about 5 13 [% ] [on the cost ] price. It continued to fall until 1766, when the prospect of profit from the revenues of Bengal caused an artificial boom, which inflated the price to £233. This was followed by a fall of 60% as a result of war in the Carnatic. From 1779 to 1788 the price was much more reasonable. It averged about £150, although at the crisis of 1784 it fell as low as £118.10 s. 0 d. After Pitt’s Act prices improved and by 1787 it was quoted at £185.10 s. 0 d. Subsequently the fluctuation’s laregely decreased. The Company was now a sovereign ruler than a trading Corporation. It paid a fair interest to its shareholders and its stock was quoted at a price which represented the capitalized value of its profits. There was no further scope for speculation. Its balance-sheet began to resemble the Indian Budget of later years.” [3] Dividends paid to the share-holders will also indicate how much India contributed to the wealth of England. “Before the union of 1709 the trade, though subject to great fluctuations, always showed a great profit. In 1682, the dividend reached the enormous figure of 160% but at the end of
- Inserted—ed.
“Discourse of trade” (1775), pp. 8, 9, 10.
T. B. Macaulay, “History of England”, Chap. III.
F. P. Robinson—“ East India Company”, p . 161.