Cossim Ali, a prince of great sagacity, and no mean financier, remonstrated with Mr. Vansittart on the abuses exercised by the English, and still more under their name, all over the country, to the oppression of his subjects, and the ruin of the public revenues; for not only did the Gomashtahs, and others in the service of the English, refuse payment of customs, but they insulted, and sometimes even insolently punished, on their own authority, the officers of the native Government. Mr. Vansittart, quite aware of the justice of the complaints, and not unwilling to remedy them, as far as the little power left in his hands by the rapacity of his Council, and his own want of vigour, would allow, at length entered into a treaty with the Subah[70], by which, among other stipulations, it was agreed, that the English should be allowed to engage in the inland trade, but subject to duties; and, in particular, were to be allowed to purchase salt, subject to a low duty of 9 per cent. only, and might transport it about the country, free from all the transit duties paid by the Subah's own subjects.[71]
This arrangement, such as it was, afforded but a feeble redress to Meer Cossim: but the Council, themselves the principal traders, were indignant, even at this moderate deduction from their commercial gains, and disavowed the act of the Governor. The consequence was what we have seen: Meer Cossim, seeing his subjects deprived of their trade, and himself of his revenues, proclaimed a general exemption from customs and duties for two years, to his subjects and to all others.
The rage of the Council of Calcutta at this step, rendered necessary by their own conduct, led to a bloody war, the massacre of Patna, the deposition of Meer Cossim, and the restoration of Meer Jaffier. It was not without reason that the Court of Directors regarded "the inland trade as the foundation of all the bloodshed, massacres, and confusion which have happened of late years in Bengal."
By the treaty[72] with the restored prince, the English got a right of trading by their own dustuck, free of all taxes, duties, and impositions, excepting one of two and a half per cent. on salt. This was, in effect, giving them a monopoly of that profitable trade; and it appears that even this duty, trifling as it was, was never levied. The arrangement threw the whole inland trade of the country into the hands of the English and their agents, whose violence totally paralysed the native Government.