Lord Palmerston's bill was dropped, in consequence of the fall of his ministry, before the time came for its second reading; but the discussion on it had to some extent smoothed the way for that of his successor, Lord Derby. A great impression on the Parliament, and on the country in general, had been made by a very able speech of Sir G.C. Lewis, Chancellor of the Exchequer. He traced the whole history of the Indian government from the day of Plassy, and substantiated the right of the home government and Parliament to remodel it as they might judge best, by proving that ever since the passing of Pitt's first bill, in 1784, the Company had been constantly subject to Parliamentary control. He showed, too, most convincingly, that a petition which the Company had presented to the House of Commons, deprecating any change in the existing system which should tend to diminish the authority of the Directors, was based on one great fallacy-speaking, as it did, of the Company as one and indivisible, and unchanged in character, functions, and influence, down to the date of the last renewal of its charter, only five years previously; whereas the truth was, that in the one hundred years since Plassy the system had undergone as many changes as the English constitution between the Heptarchy and the reign of Queen Victoria.
He had thus removed some of the obstacles out of the way of the measure of the new government, though Lord Derby would have preferred postponing it till tranquillity should have been restored to the country by the complete suppression of the revolt, had not the large majority[298] which had sanctioned the introduction of Lord Palmerston's bill, in his opinion, "placed the Company in such a situation that they could no longer command the same amount of public confidence and public support as they were entitled to receive previously to that vote of the House of Commons." It may be added that the first bill on the subject which was introduced by his government bore evident marks of the difficulties under which it was framed-difficulties existing from the unexpected suddenness of his accession to office; so that, after a not very short discussion, it was eventually withdrawn, and it was not till the end of June that the measure which was finally adopted was introduced.
The leading enactments of the measure[299] provided that for the future the government of India, described as having been hitherto vested in, or exercised by, the Company in trust for her Majesty, should be vested in her Majesty, and exercised in her name; that one of her Majesty's principal Secretaries of State should have and perform all such powers and duties relating to the government or revenues of India as had formerly belonged to the Court of Directors, as the Court of Proprietors of the Company; that a Council of the Governor-general should be established, consisting of fifteen members, seven of whom should be appointed by the Court of Directors, being persons who were, or had formerly been, Directors of the Company, and eight should be nominated by the crown. And as to both classes, it was provided that the majority should consist of persons who had served or resided in India for ten years at the least, and should not have left India more than ten years when appointed. They were to hold their offices during good behavior, to receive salaries, and to be entitled to retiring pensions, but to be incapable of sitting in Parliament. The appointment of Governor-general and Governor of each Presidency was to belong to the crown. The expenditure of the revenues of India, both in India and elsewhere, was to be subject to the control of the Secretary of State in Council; other clauses provided for the dividends of the Company, for the admission of persons into the civil service; and, with reference to existing establishments, one clause provided that "the Indian military and naval forces should remain under existing conditions of service."
This last clause was strongly objected to by the Queen,[300] as "inconsistent with her constitutional position as head of the army, which required that the Commander-in-chief should be put in communication with the new Secretary of State for India, in the same manner in which he is placed with regard to the troops at home or in the colonies toward the Secretary of State for War.... With regard to the whole army, whether English or Indian, there could, with due regard to the public interest, be only one head and one general command." She yielded her opinion, however, to the resolute objections of the Prime-minister, with whom on this point his predecessor,[301] Lord Palmerston, agreed; but the result proved the superior soundness of her Majesty's view. It was not only a most anomalous arrangement, since the supreme control of all the warlike forces was one of the most inalienable prerogatives of the crown, but it had the strange fault of preserving the double government in the case in which, above all others, unity of system and unity of command were most indispensable. And, what weighed more than either consideration with the generally practical views of English statesmen, it was from the beginning found to work badly, creating, as it did, great and mischievous jealousies between the two divisions, the Royal and the Indian army. It was found that all the generals then in the highest commands in India-Lord Clyde (Sir Colin Campbell having been ennobled by that title), Sir Hugh Rose, and Sir William Mansfield-strongly disapproved of it, and recommended a change; and consequently, in the summer of 1860, Lord Palmerston, who in the mean while had returned to the Treasury, came round to the Queen's view of the subject, and a new act was passed which amalgamated the two armies into one Imperial army, taking its turn of duty throughout all parts of the British empire.[302]
A letter addressed by Lord Palmerston to the Queen in the autumn of 1857, which appears to have been his first statement to her Majesty of the opinion which he had formed of the necessity of abolishing the governing authority of the Company, states the principal arguments in favor of such a measure with great clearness, as arising from "the inconvenience and difficulty of administering the government of a vast country on the other side of the globe by means of two cabinets, the one responsible to the crown and Parliament, the other only responsible to the holders of Indian stock, meeting for a few hours three or four times a year, which had been shown by the events of the year to be no longer tolerable." His disapproval of parts of Lord Ellenborough's policy probably prevented him from alluding to his recall from India by the Directors, in direct defiance of the opinion of the government,[303] though that strange step can hardly have been absent from his mind. But, in fact, the case for taking the whole rule of so vast a dominion wholly into the hands of the Queen's government at home was so irresistible, that it did not require to be strengthened by reference to any individual instances of inconvenience. When the double government was originally established, the English in India were still but a small mercantile community, with very little territory beyond that in the immediate neighborhood of its three chief cities. Of the conduct of the affairs of such a body, still almost confined to commerce, the chief share might not unreasonably be left to the merchants themselves, subject to such supervision on the part of the government at home as was implied in the very name of the department invested with that supervision, the Board of Control, which, as Pitt explained the name, was meant to show that it was not to be, like the measure proposed by the Coalition Ministry, a board of political influence.[304] But the case was wholly altered when British India reached from Point de Galle to the Himalayas, and spread beyond the Ganges on the east, to beyond the Indus on the west; when the policy adopted in India often influenced our dealings with European states, and when the force required for the protection of those vast interests exceeded the numbers of the royal army. India, too, is a country the climate of which prevents our countrymen from emigrating to it as settlers, as they do to Canada or Australia, and where, consequently, the English residents are, and always must be, a mere handful in comparison with the millions of natives. In such a case their government must at all times rest mainly on opinion, on the belief in the pre-eminent power of the ruler; and it was obvious that that belief would be greatly fortified by the sovereign of Britain becoming that ruler.[305] The great rajahs cordially recognized the value of the transfer of power considered in this light, and felt their own dignity enhanced by becoming the vassals of the sovereign herself.