[360] The Commons had, in the meantime, resumed the consideration of another highly important matter, the state of the trade with India.

They had, towards the close of the preceding session, requested the King to dissolve the old Company and to constitute a new Company on such terms as he should think fit; and he had promised to take their request into his serious consideration.

He now sent a message to inform them that it was out of his power to do what they had asked.

He had referred the charter of the old Company to the Judges, and the judges had pronounced that, under the provisions of that charter, the old Company could not be dissolved without three years' notice, and must retain during those three years the exclusive privilege of trading to the East Indies.

He added that, being sincerely desirous to gratify the Commons, and finding himself unable to do so in the way which they had pointed out, he had tried to prevail on the old Company to agree to a compromise; but that body stood obstinately on its extreme rights; and his endeavours had been frustrated.