On receiving silver bullion from Spain for the provision of 4,800
African slaves, Britain had a surplus of silver which it then used
for trading with India.
At Battle of Plassey in 1757 British troops commanded by Robert
Clive defeated the Bengal ruler a Mughal viceroy and put in British
puppet. Robert Clive said there would be little or no difficulty in
obtaining absolute possession of these rich kingdoms. At this point
silver was no longer needed for trading with India.
Before British rule, there was no private property in land. The self-
governing village community handed over each year to the ruler or
his nominee a share of the years produce. East India Company put a
stop to this and introduced a new revenue system superseding the
right of the village community over land and creating two new forms
of property on land - landlordism and individual peasant
proprietorship. It was assumed that the State was the supreme
landlord. Fixed tax payments were introduced based on land whereby
payment had to be made to the government whether or not crop had
been successful. As one British put it we have introduced new
methods of assessing and cultivating land revenue which have
converted a once flourishing population into a huge horde of
paupers. Indeed the first effect was the reduction in agricultural
incomes by 50% thereby undermining the agrarian economy and self-
governing village.
In 1769 the Company prohibited Indians from trading in grain, salt,
betel nuts and tobacco and discouraged handicraft. Company also
prohibited the home work of the silk weavers and compelled them to
work in its factories. Weavers who disobeyed were imprisoned, fined
or flogged. Company's servants lined their own pockets by private
trading and bribery and extortion. Goods were seized at a fraction
of their price and resold to their owners at five times their
price.
In 1770s one writer said of Bengal : one continued scene or
oppression. Systematic plunder led to a famine in which 10 million
people perished. Bengal was left naked, stripped of its surplus
wealth and grain. Famine struck in 1770 and took the lives of an
estimated one third of Bengal's peasantry. A Commons Select
Committee report in 1783 said that natives of all ranks and orders
had been reduced to a State of Depression and Misery.
In 1787 a former army officer wrote: In former times the Bengal
countries were the granary of nations, and the repository of
commerce, wealth and manufacture in the East...But such has been the
restless energy of misgovernment, that within 20 years many parts of
those countries have been reduced to desert. The fields are no
longer cultivated, extensive tracks are already overgrown with
thickets, the husbandman is plundered, the manufacturer
(handicraftsman) oppressed, famine has been repeatedly endured and
depopulation ensured.
As India became poor and hungry, Britain became richer. Colossal
fortunes were made. Robert Clive arrived in India penniless -
activities of Company investigated by House of Commons. The Hindi
word loot was introduced into English language because of the
plunder of India. Colossal fortunes helped fund Britain's Industrial
Revolution