managed by commercial Superintendents. and the Indian Government was content to leave their factories and possessions, in Penang at all events. outside the Indian political system.
The next stage exhibits an entire change.1805. The Indian Government went from one extreme to the other. The rapid progress of the new Settlement's commerce at Penang was duly appreciated by the Government of Lord Wellesley, the early prosperity of the place supporting his views regarding "private trade;" the expedition of 1797, and, no doubt, Colonel Wellesley's communications, brought enquiry, when quieter times followed, into Penang's political prospects. Exaggerated notions then came to be entertained of the new Settlement's importance for naval and political purposes; and in 1804-5 the East India Company decided to confer upon it an independent Government, and sent out a Governor and Council, Secretary, Assistant Secretary and several Writers, after the fashion of the older Presidencies, with which Penang was now to rank. A Recorder's Court followed (1807), and enquiry was also made as to the desirability of abandoning Malacca (1808), the better to secure Penang's position. Then came the Java expedition (1811), and the old commercial struggle with the Dutch also entered into the political phase; not so much through the temporary occupation of their possessions, as in consequence of the great political stroke of abolishing monopoly (1813), which followed shortly after our occupation. What Lord Minto took in 1811, was restored; but his successor, Lord Hastings, was equally ready to support the talented administrator, Sir T. S. Raffles, upon whom his predecessor had relied, and who had governed Java until its restoration; and he allowed Raffles to found Singapore (1819), for objects which are very clearly explained in one of Raffles's first letters from Singapore, dated June 10th, 1819 (preserved in the Raffles Museum).
The Penang Government was also alive to the importance of preventing any re-establishment of Dutch monopoly at this crisis. and for that purpose entered into negotiations, which will be found recorded in the earliest of our Treaties with Pêrak and Sĕlangor (1818).
