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BRIEF CONTENTS
Preface xix
Chapter 1
Introduction to Project Management 1
Chapter 2
The Project Management and Information Technology Context 43
Chapter 3
The Project Management Process Groups: A Case Study 81
Chapter 4
Project Integration Management 139
Chapter 5
Project Scope Management 187
Chapter 6
Project Time Management 225
Chapter 7
Project Cost Management 271
Chapter 8
Project Quality Management 311
Chapter 9
Project Human Resource Management 359
Chapter 10
Project Communications Management 405
Chapter 11
Project Risk Management 439
Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.

Chapter 12
Project Procurement Management 479
Chapter 13
Project Stakeholder Management 509
Appendix A
Guide to Using Microsoft Project 2013 A.1
Appendix B
(Available on CengageBrain.com)
Appendix C
Glossary G.1
Index I.1
viii Brief Contents

TABLE OF CONTENTS
Preface xix
Chapter 1 Introduction to Project Management 1
Introduction 2
What Is a Project? 4
Examples of IT Projects 4
Project Attributes 6
Project Constraints 7
What Is Project Management? 9
Project Stakeholders 10
Project Management Knowledge Areas 11
Project Management Tools and Techniques 12
Project Success 14
Program and Project Portfolio Management 16
Programs 17
Project Portfolio Management 17
The Role of the Project Manager 21
Project Manager Job Description 21
Suggested Skills for Project Managers 22
Importance of People Skills and Leadership Skills 24
Careers for IT Project Managers 25
The Project Management Profession 26
History of Project Management 26
The Project Management Institute 30
Project Management Certification 30
Ethics in Project Management 32
Project Management Software 33
Chapter Summary 36
Quick Quiz 37
Quick Quiz Answers 38
Discussion Questions 38
Exercises 39
Key Terms 40
End Notes 41
Chapter 2 The Project Management and Information Technology Context 43
A Systems View of Project Management 45
What Is a Systems Approach? 45
The Three-Sphere Model for Systems Management 46

Understanding Organizations 47
The Four Frames of Organizations 47
Organizational Structures 49
Organizational Culture 51
Stakeholder Management 52
The Importance of Top Management Commitment 54
The Need for Organizational Commitment to Information Technology 55
The Need for Organizational Standards 56
Project Phases and the Project Life Cycle 56
Product Life Cycles 59
The Importance of Project Phases and Management Reviews 62
The Context of Information Technology Projects 64
The Nature of IT Projects 64
Characteristics of IT Project Team Members 64
Diverse Technologies 65
Recent Trends Affecting Information Technology Project Management 65
Globalization 65
Outsourcing 66
Virtual Teams 67
Agile Project Management 69
The Manifesto for Agile Software Development 70
Scrum 70
Agile, the PMBOK®
Guide, and a New Certification 71
Chapter Summary 73
Quick Quiz 74
Exercises 76
Key Terms 77
End Notes 78
Chapter 3 The Project Management Process Groups: A Case Study 81
Project Management Process Groups 82
Mapping the Process Groups to the Knowledge Areas 87
Developing an IT Project Management Methodology 88
Case Study 1: JWD Consulting’s Project Management Intranet Site Project
(Predictive Approach) 91
Project Pre-Initiation and Initiation 91
Pre-Initiation Tasks 92
Initiating 96
Project Planning 100
Project Execution 109
Project Monitoring and Controlling 114
Project Closing 117
Case Study 2: JWD Consulting’s Project Management Intranet Site Project
(Agile Approach) 120
Scrum Roles, Artifacts, and Ceremonies 121
Project Pre-Initiation and Initiation 123
Planning 124
x Table of Contents

Executing 127
Monitoring and Controlling 127
Closing 129
Templates by Process Group 129
Chapter Summary 133
Quick Quiz 133
Exercises 136
Key Terms 137
End Notes 138
Chapter 4 Project Integration Management 139
What Is Project Integration Management? 140
Strategic Planning and Project Selection 143
Strategic Planning 143
Identifying Potential Projects 145
Aligning IT with Business Strategy 146
Methods for Selecting Projects 148
Focusing on Broad Organizational Needs 148
Categorizing IT Projects 148
Performing Net Present Value Analysis, Return on Investment, and Payback
Analysis 149
Net Present Value Analysis 149
Return on Investment 152
Payback Analysis 153
Using a Weighted Scoring Model 154
Implementing a Balanced Scorecard 156
Developing a Project Charter 157
Developing a Project Management Plan 161
Project Management Plan Contents 161
Using Guidelines to Create Project Management Plans 164
Directing and Managing Project Work 166
Coordinating Planning and Execution 166
Providing Strong Leadership and a Supportive Culture 167
Capitalizing on Product, Business, and Application Area Knowledge 167
Project Execution Tools and Techniques 168
Monitoring and Controlling Project Work 169
Performing Integrated Change Control 171
Change Control on IT Projects 172
Change Control System 173
Closing Projects or Phases 175
Using Software to Assist in Project Integration Management 175
Chapter Summary 178
Quick Quiz 178
Table of Contents xi

Exercises 181
Running Case 182
Tasks 183
Key Terms 184
End Notes 185
Chapter 5 Project Scope Management 187
What Is Project Scope Management? 188
Planning Scope Management 189
Collecting Requirements 191
Defining Scope 194
Creating the Work Breakdown Structure 198
Approaches to Developing Work Breakdown Structures 203
Using Guidelines 203
The Analogy Approach 204
The Top-Down and Bottom-Up Approaches 204
Mind Mapping 205
The WBS Dictionary 206
Advice for Creating a WBS and WBS Dictionary 207
Validating Scope 208
Controlling Scope 210
Suggestions for Improving User Input 212
Suggestions for Reducing Incomplete and Changing Requirements 212
Using Software to Assist in Project Scope Management 214
Chapter Summary 216
Quick Quiz 216
Exercises 219
Running Case 220
Tasks 221
Key Terms 221
End Notes 222
Chapter 6 Project Time Management 225
The Importance of Project Schedules 226
Planning Schedule Management 229
Defining Activities 229
Sequencing Activities 232
Dependencies 232
Network Diagrams 233
Estimating Activity Resources 236
Estimating Activity Durations 237
Developing the Schedule 238
Gantt Charts 238
Adding Milestones to Gantt Charts 240
Using Tracking Gantt Charts to Compare Planned and Actual Dates 241
Critical Path Method 243
Calculating the Critical Path 243
Growing Grass Can Be on the Critical Path 244
xii Table of Contents

Using Critical Path Analysis to Make Schedule Trade-Offs 245
Using the Critical Path to Shorten a Project Schedule 247
Importance of Updating Critical Path Data 248
Critical Chain Scheduling 248
Program Evaluation and Review Technique (PERT) 251
Controlling the Schedule 252
Reality Checks on Scheduling and the Need for Discipline 253
Using Software to Assist in Project Time Management 255
Words of Caution on Using Project Management Software 256
Chapter Summary 258
Quick Quiz 259
Exercises 261
Running Case 265
Tasks 265
Key Terms 265
End Notes 268
Chapter 7 Project Cost Management 271
The Importance of Project Cost Management 272
What Is Cost? 274
What Is Project Cost Management? 274
Basic Principles of Cost Management 275
Planning Cost Management 279
Estimating Costs 280
Types of Cost Estimates 280
Cost Estimation Tools and Techniques 282
Typical Problems with IT Cost Estimates 283
Sample Cost Estimate 284
Determining the Budget 289
Controlling Costs 291
Earned Value Management 291
Project Portfolio Management 297
Using Project Management Software to Assist in Project Cost Management 299
Chapter Summary 301
Quick Quiz 301
Exercises 304
Running Case 305
Tasks 305
Key Terms 306
End Notes 308
Chapter 8 Project Quality Management 311
The Importance of Project Quality Management 312
What Is Project Quality Management? 314
Planning Quality Management 316
Performing Quality Assurance 318
Table of Contents xiii

Controlling Quality 319
Tools and Techniques for Quality Control 320
Statistical Sampling 327
Six Sigma 328
How Is Six Sigma Quality Control Unique? 329
Six Sigma and Project Selection and Management 330
Six Sigma and Statistics 331
Testing 333
Modern Quality Management 335
Deming and His 14 Points for Management 336
Juran and the Importance of Top Management Commitment to Quality 336
Crosby and Striving for Zero Defects 337
Ishikawa’s Guide to Quality Control 338
Taguchi and Robust Design Methods 338
Feigenbaum and Workers’ Responsibility for Quality 338
Malcolm Baldrige National Quality Award 338
ISO Standards 339
Improving IT Project Quality 340
Leadership 340
The Cost of Quality 341
Organizational Influences, Workplace Factors, and Quality 343
Expectations and Cultural Differences in Quality 343
Maturity Models 344
Software Quality Function Deployment Model 344
Capability Maturity Model Integration 344
Project Management Maturity Models 345
Using Software to Assist in Project Quality Management 347
Chapter Summary 348
Quick Quiz 348
Exercises 351
Running Case 352
Tasks 352
Key Terms 352
End Notes 355
Chapter 9 Project Human Resource Management 359
The Importance of Human Resource Management 360
The Global IT Workforce 360
Implications for the Future of IT Human Resource Management 361
What Is Project Human Resource Management? 363
Keys to Managing People 365
Motivation Theories 365
Maslow’s Hierarchy of Needs 365
Herzberg’s Motivation-Hygiene Theory 366
McClelland’s Acquired-Needs Theory 367
McGregor’s Theory X and Theory Y 368
Thamhain and Wilemon’s Influence and Power 368
xiv Table of Contents

Covey and Improving Effectiveness 370
Developing the Human Resource Plan 373
Project Organizational Charts 374
Responsibility Assignment Matrices 376
Staffing Management Plans and Resource Histograms 377
Acquiring the Project Team 378
Resource Assignment 379
Resource Loading 381
Resource Leveling 383
Developing the Project Team 384
Training 385
Team-Building Activities 386
The Myers-Briggs Type Indicator 386
The Social Styles Profile 388
DISC Profile 389
Reward and Recognition Systems 390
Managing the Project Team 390
Tools and Techniques for Managing Project Teams 391
General Advice on Managing Teams 393
Using Software to Assist in Human Resource Management 394
Chapter Summary 396
Quick Quiz 397
Exercises 399
Running Case 400
Key Terms 401
End Notes 402
Chapter 10 Project Communications Management 405
The Importance of Project Communications Management 406
Keys to Good Communications 408
Focusing on Group and Individual Communication Needs 409
Formal and Informal Methods for Communicating 410
Distributing Important Information in an Effective and Timely Manner 411
Setting the Stage for Communicating Bad News 412
Determining the Number of Communication Channels 412
Planning Communications Management 414
Managing Communications 416
Using Technology to Enhance Information Creation and Distribution 416
Selecting the Appropriate Communication Methods and Media 417
Reporting Performance 420
Controlling Communications 420
Suggestions for Improving Project Communications 421
Developing Better Communication Skills 421
Running Effective Meetings 423
Using E-Mail, Instant Messaging, Texting, and Collaborative Tools Effectively 424
Using Templates for Project Communications 427
Using Software to Assist in Project Communications 430
Table of Contents xv

Chapter Summary 433
Quick Quiz 433
Exercises 435
Running Case 436
Key Terms 437
End Notes 437
Chapter 11 Project Risk Management 439
The Importance of Project Risk Management 440
Planning Risk Management 447
Common Sources of Risk on IT Projects 448
Identifying Risks 452
Suggestions for Identifying Risks 453
The Risk Register 455
Performing Qualitative Risk Analysis 457
Using Probability/Impact Matrixes to Calculate Risk Factors 457
Top Ten Risk Item Tracking 459
Performing Quantitative Risk Analysis 461
Decision Trees and Expected Monetary Value 461
Simulation 463
Sensitivity Analysis 465
Planning Risk Responses 467
Controlling Risks 469
Using Software to Assist in Project Risk Management 469
Chapter Summary 471
Quick Quiz 472
Exercises 474
Running Case 475
Key Terms 476
End Notes 478
Chapter 12 Project Procurement Management 479
The Importance of Project Procurement Management 480
Planning Procurement Management 483
Types of Contracts 485
Tools and Techniques for Planning Procurement Management 489
Make-or-Buy Analysis 489
Expert Judgment 490
Market Research 490
Procurement Management Plan 491
Statement of Work 491
Procurement Documents 493
Source Selection Criteria 494
Conducting Procurements 495
Controlling Procurements 497
Closing Procurements 499
xvi Table of Contents

Using Software to Assist in Project Procurement Management 499
Chapter Summary 502
Quick Quiz 503
Exercises 505
Running Case 505
Key Terms 506
End Notes 507
Chapter 13 Project Stakeholder Management 509
The Importance of Project Stakeholder Management 510
Identifying Stakeholders 512
Planning Stakeholder Management 516
Managing Stakeholder Engagement 516
Controlling Stakeholder Engagement 519
Using Software to Assist in Project Stakeholder Management 522
Chapter Summary 524
Quick Quiz 524
Exercises 526
Running Case 527
Key Terms 527
End Notes 527
Appendix A Guide to Using Microsoft Project 2013 A.1
Introduction A.2
Project Management Software Reviews A.3
Basic Features of Project Management Software A.5
What’s New in Project 2013 A.6
Using Project 2013 A.7
Before You Begin A.7
Using the 60-day Trial of Project 2013 A.8
Overview of Project 2013 A.9
Starting Project 2013 and Getting Started A.9
Understanding the Main Screen Elements A.12
Using Project Help and the Project Web Site A.14
Exploring Project 2013 Using an Existing File A.15
Project 2013 Views A.17
Project 2013 Reports A.19
Project 2013 Filters A.21
Creating a New File and Entering Tasks in a Work Breakdown Structure A.23
Creating a New Project File A.23
Creating a Work Breakdown Structure Hierarchy A.25
Creating Summary Tasks A.26
Numbering Tasks A.27
Saving Project Files Without a Baseline A.28
Developing the Schedule A.29
Table of Contents xvii

Calendars A.29
Entering Task Durations A.31
Manual and Automatic Scheduling A.31
Duration Units and Guidelines for Entering Durations A.32
Entering Task Durations A.34
Establishing Task Dependencies A.38
Gantt Charts, Network Diagrams, and Critical Path Analysis A.43
Project Cost and Resource Management A.46
Entering Fixed and Variable Cost Estimates A.46
Entering Fixed Costs in the Cost Table A.47
Entering Resource Information and Cost Estimates A.47
Using the Team Planner Feature A.51
Entering Baseline Plans, Actual Costs, and Actual Times A.52
Viewing Earned Value Management Data A.56
Integrating Project 2013 with Other Applications and Apps for Office A.57
Copying Information Between Applications A.57
Creating Hyperlinks to Other Files A.59
Using Project 2013 Apps A.60
Discussion Questions A.63
Exercises A.63
End Notes A.64
Appendix B
Appendix C
Glossary G.1
Index I.1
xviii Table of Contents

PREFACE
The future of many organizations depends on their ability to harness the power of
information technology, and good project managers continue to be in high demand.
Colleges have responded to this need by establishing courses in project management
and making them part of the information technology, management, engineering, and
other curricula. Corporations are investing in continuing education to help develop
effective project managers and project teams. This text provides a much-needed
framework for teaching courses in project management, especially those that
emphasize managing information technology projects. The first six editions of this
text were extremely well received by people in academia and the workplace. The
Seventh Edition builds on the strengths of the previous editions and adds new,
important information and features.
It’s impossible to read a newspaper, magazine, or Web page without hearing about
the impact of information technology on our society. Information is traveling faster
and being shared by more people than ever before. You can buy just about anything
online, surf the Web on a mobile phone, or use a wireless Internet connection at your
local coffee shop. Companies have linked their systems together to help them fill
orders on time and better serve their customers. Software companies are continually
developing new products to help streamline our work and get better results. When
technology works well, it is almost invisible. But did it ever occur to you to ask,
“Who makes these complex technologies and systems happen?”
Because you’re reading this text, you must have an interest in the “behind-the-
scenes” aspects of technology. If I’ve done my job well, you’ll begin to see the many
innovations society is currently enjoying as the result of thousands of successful
information technology projects. In this text, you’ll read about IT projects around the
world that went well, including Mittal Steel Poland’s Implementation of SAP that uni-
fied IT systems to improve business and financial processes; Dell Earth and other
green computing projects that save energy and millions of dollars; Six Sigma projects
such as the project to improve case load management at Baptist St. Anthony’s
Hospital in Amarillo, Texas; the systems infrastructure project at the Boots Company
in the United Kingdom that takes advantage of supplier competition to cut costs and
improve services; and many more. Of course, not all projects are successful. Factors
such as time, money, and unrealistic expectations, among many others, can sabotage
a promising effort if it is not properly managed. In this text, you’ll also learn from the
mistakes made on many projects that were not successful. I have written this book in
an effort to educate you, tomorrow’s project managers, about what will help make a
project succeed—and what can make it fail. You’ll also see how projects are used in
everyday media, such as television and film, and how companies use best practices in
project management. Many readers tell me how much they enjoy reading these real-
world examples in the What Went Right?, What Went Wrong?, Media Snapshot, and
Best Practice features. As practitioners know, there is no “one size fits all” solution to

managing projects. By seeing how different organizations successfully implement
project management, you can help your organization do the same.
Although project management has been an established field for many years,
managing information technology projects requires ideas and information that go
beyond standard project management. For example, many information technology
projects fail because of a lack of user input, incomplete and changing requirements,
and a lack of executive support. This book includes suggestions for dealing with these
issues. New technologies can also aid in managing information technology projects,
and examples of using software to assist in project management are included
throughout the book.
Information Technology Project Management, REVISED Seventh Edition, is the
only textbook to apply all 10 project management knowledge areas and all five pro-
cess groups to information technology projects. As you will learn, the project man-
agement knowledge areas are project integration, scope, time, cost, quality, human
resource, communications, risk, procurement, and stakeholder management. The
five process groups are initiating, planning, executing, monitoring and controlling,
and closing.
This text builds on the PMBOK® Guide, Fifth Edition, an American National
Standard, to provide a solid framework and context for managing information tech-
nology projects. It also includes an appendix, Guide to Using Microsoft Project 2013,
that many readers find invaluable. A second appendix provides advice on earning and
maintaining Project Management Professional (PMP) certification from the Project
Management Institute (PMI) as well as information on other certification programs,
such as CompTIA’s Project certification. A third appendix provides additional case
studies and information on using simulation and mind-mapping software to help
readers apply their project management skills.
Information Technology Project Management, REVISED Seventh Edition, pro-
vides practical lessons in project management for students and practitioners alike. By
weaving together theory and practice, this text presents an understandable, integrated
view of the many concepts, skills, tools, and techniques of information technology
project management. The comprehensive design of the text provides a strong founda-
tion for students and practitioners in project management.
N E W T O T H E R E V I S E D S E V E N T H E D I T I O N
Building on the success of the previous editions, Information Technology Project
Management, REVISED Seventh Edition, introduces a uniquely effective combination
of features. The main changes in the Seventh Edition include the following:
• The key update for the REVISED Seventh Edition is that Appendix A has
been updated for Microsoft Project 2013.
• Several changes were made to synchronize the Seventh Edition with the
PMBOK® Guide, Fifth Edition. Changes were made based on the exposure
draft released in February 2012. The biggest change was the addition of a
tenth knowledge area, Project Stakeholder Management. This text includes a
new chapter to address this important topic.
• Includes additional information on agile project management. Chapter 2
includes general information on this popular concept, and Chapter 3 provides
a second case study illustrating the outputs produced for the JWD Consulting
xx Preface

project when using an agile approach. For example, you can see a sample
product backlog, a sprint backlog, a burndown chart, and key artifacts or
outputs produced when using Scrum, the most popular agile method.
• Appendix C, Additional Cases and Software, provides information about using
several simulation software tools. Several suppliers offer discounts to users of this
text. A new section provides instructions for accessing a special 60-day trial of
MindView Business software. This software provides the capability to create mind
maps, a powerful tool for creating a SWOT analysis or work breakdown structure.
The software also allows users to convert a mind map into a Gantt chart.
• A new feature, Global Issues, provides examples of how project management
concepts and practices affect people around the globe.
• Updated examples are provided throughout the text. You’ll notice several new
examples in the Seventh Edition that explain recent events in managing real
information technology projects. Several of the What Went Right?, What
Went Wrong?, Media Snapshot, and Best Practice examples have been
updated to keep you current. Additional examples and results of new studies
are included throughout the text, with appropriate citations.
• User feedback is incorporated. Based on feedback from reviewers, students,
instructors, practitioners, and translators, you’ll see several additional
changes to help clarify information. (This book has been translated into
Chinese, Japanese, Russian, and Czech.)
• A new CourseMate site for the Seventh Edition (www.cengagebrain.com)
provides access to informative links from the end notes, lecture notes, inter-
active quizzes, templates, additional running cases, suggested readings, and
many other items to enhance your learning.
A C C E S S I N G T H E C O U R S E M A T E S I T E
To access the CourseMate site, open a Web browser and go to www.cengage
brain.com. Search by ISBN, author name, or title, and click Create My Account
to begin the registration process.
A P P R O A C H
Many people have been practicing some form of project management with little or no for-
mal study in this area. New books and articles are written each year as we discover more
about the field of project management, and project management software continues to
advance. Because the project management field and the technology industry change
rapidly, you cannot assume that what worked even a few years ago is still the best
approach today. This text provides up-to-date information on how good project manage-
ment and effective use of software can help you manage projects, especially information
technology projects. Six distinct features of this text include its relationship to the Project
Management Body of Knowledge, its detailed guide for using Microsoft Project 2013, its
value in preparing for Project Management Professional and other certification exams, its
inclusion of running case studies and online templates, its companion (premium) Web
site, and its inclusion of a 60-day trial of MindView Business software.
Preface xxi

Based on PMBOK®
Guide, Fifth Edition
The Project Management Institute (PMI) created the Guide to the Project
Management Body of Knowledge (the PMBOK®
Guide) as a framework and starting
point for understanding project management. It includes an introduction to project
management, brief descriptions of all 10 project management knowledge areas, and a
glossary of terms. The PMBOK®
Guide is, however, just that—a guide. This text uses
the PMBOK®
Guide, Fifth Edition exposure draft (2012) as a foundation, but goes
beyond it by providing more details, highlighting additional topics, and providing a
real-world context for project management. Information Technology Project
Management, Seventh Edition, explains project management specifically as it applies
to managing information technology projects in the 21st century. It includes several
unique features to bring you the excitement of this dynamic field. (For more infor-
mation on features, see the Pedagogical Features section.)
Detailed Guide for How to Use Microsoft Project 2013
Software has advanced tremendously in recent years, and it is important for project
managers and their teams to use software to help manage information technology
projects. Information Technology Project Management, REVISED Seventh Edition,
includes a detailed guide in Appendix A for using the leading project management
software on the market—Microsoft Project 2013. Examples that use Project and other
software tools are integrated throughout the text. Appendix A, Guide to Using Microsoft
Project 2013, teaches you in a systematic way to use this powerful software to help in
project scope, time, cost, human resource, and communications management.
Resource for PMP and Other Certification Exams
Professional certification is an important factor in recognizing and ensuring quality in
a profession. PMI provides certification as a Project Management Professional (PMP),
and this text is an excellent resource for studying for the certification exam as well as
the entry-level Certified Associate in Project Management (CAPM) exam. This text
will also help you pass other certification exams, such as CompTIA’s Project+ exam.
Having working experience on projects does not mean you can easily pass the PMP or
other certification exams.
I like to tell my students a story about taking a driver’s license test after moving to
Minnesota. I had been driving safely and without accidents for over 16 years, so I
thought I could just walk in and take the test. I was impressed by the sophisticated
computer system used to administer the test. The questions were displayed on a large
touch-screen monitor, often with an image or video to illustrate traffic signs or driving
situations. I became concerned when I had no idea how to answer several questions,
and I was perplexed when the test seemed to stop and a message appeared: “Please see
the person at the service counter.” This was a polite way of saying I had failed the test!
After controlling my embarrassment, I picked up one of the Minnesota driving test
brochures, studied it for an hour or two that night, and passed the test the next day.
The point of this story is to emphasize the importance of studying information
from the organization that creates the test and not to be overconfident that your
experience is enough. Because this text is based on PMI’s PMBOK®
Guide, Fifth
Edition, it provides a valuable reference for studying for PMP certification.
xxii Preface

It is also an excellent reference for CompTIA’s Project+ exam. I have earned both
of these certifications and kept them in mind when writing this text.
Exercises, Running Cases, Templates, Sample Documents,
and Optional Simulation Software
Based on feedback from readers, the REVISED Seventh Edition continues to provide
challenging exercises and running cases to help students apply concepts in each
chapter. The text includes more than 50 templates, examples of real project docu-
ments, and information on several simulation software tools that you can use to
practice your skills in managing a project. All of these features help the subject
matter come alive and have more meaning.
O R G A N I Z A T I O N A N D C O N T E N T
Information Technology Project Management, REVISED Seventh Edition, is organized
into three main sections to provide a framework for project management, a detailed
description of each project management knowledge area, and three appendices to
provide practical information for applying project management. The first three chap-
ters form the first section, which introduces the project management framework and
sets the stage for the remaining chapters.
Chapters 4 through 13 form the second section of the text, which describes
each of the project management knowledge areas—project integration, scope, time,
cost, quality, human resource, communications, risk, procurement, and stakeholder
management—in the context of information technology projects. An entire chapter
is dedicated to each knowledge area. Each of these chapters includes sections that
map to their major processes as described in the PMBOK®
Guide, Fifth Edition. For
example, the chapter on project quality management includes sections on planning
quality management, performing quality assurance, and controlling quality.
Additional sections highlight other important concepts related to each knowledge
area, such as Six Sigma, testing, maturity models, and using software to assist in
project quality management. Each chapter also includes detailed examples of key
project management tools and techniques as applied to information technology
projects. For example, the chapter on project integration management includes
samples of various project-selection documents, such as net present value analyses,
ROI calculations, payback analyses, and weighted scoring models. The project
scope management chapter includes a sample project charter, a project scope
statement, and several work breakdown structures for information technology
projects.
Appendices A through C form the third section of the text, which provides
practical information to help you apply project management skills to real or prac-
tice projects. By following the detailed, step-by-step guide in Appendix A, which
includes more than 60 screen illustrations, you will learn how to use Project 2013.
Appendix B summarizes what you need to know to earn PMP or other certifications
related to project management. Appendix C provides additional running cases and
information on using simulation and mind-mapping software to help you practice
your new skills.
Preface xxiii

P E D A G O G I C A L F E A T U R E S
Several pedagogical features are included in this text to enhance presentation of the
materials so that you can more easily understand the concepts and apply them.
Throughout the text, emphasis is placed on applying concepts to current, real-world
information technology project management.
CourseMate
Engagement Tracker
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and entire interests of a numerous commercial nation. But, in the
discharge of this sovereign trust, we shall find the government of
Bengal a mere Vis inertiæ, void of the two efficient principles of
action, ability or power of acting, and will or inclination. For how can
we expect to find the ability, of governing well, in the men employed
by the Company to execute the government of those countries? to
attain the knowledge of any one science or mystery, demands an
effort of the mind; but it is impossible for the brightest natural
genius to arrive at even a moderate degree of skill in the art of
governing, which, as it is the most elevated, so is it the most
difficult, abstruse, various and complicated of all human sciences,
without long and intense application, study, and reflection; and, we
may add, a series of practice; and all these gradations to skill, in
governing, are wanting to our Bengal governors. Their scholastic
education extends no farther than to qualify them for merchants
clerks; and, immediately on being taken from school, they are
dispatched to India; where the manner of life is consonant to the
climate, voluptuous to a degree of dissoluteness, vain, idle,
dissipated, and an enemy to study or reflection: the juvenile part of
their life being spent in this manner, they arrive at the charge of
government with minds perfectly uninformed, and so very averse to
application, that they commit and implicitly confide the charge of
their own private concerns to servants. If such men should possess
the skill or address of governing well, it must certainly be acquired
instantaneously and supernaturally; infused into them by miracle,
like the gift of speech into the ass of Balaam.
But the want of will or inclination is an obstacle to their governing
well, still more prevalent than is the want of ability. Labour, fatigue,
and difficulty are evils, to which the human mind is so naturally
averse, that, unless it is urged by some strong impulse of passion,
such as the fear of some superior evil, or the hope and desire of
some mighty good, it will decline and evade them: what stimulum
then can be sufficiently powerful to urge the habitually indolent
minds of our Bengal governors to encounter the difficulties, the
labour, and fatigue attending a due discharge of the duties of

government; which, of all human undertakings, is the most replete
with these mental evils? Yet this government, which demands a
stronger stimulum than any other government that ever yet existed,
is in effect urged by no one motive or consideration to discharge the
duties of its office; for, as it holds no interest in the lasting welfare of
the people governed, neither its hopes nor its fears are at all
interested in the good or evil consequences that may be caused by
its own vigilance or neglect: being altogether superior to the
resentment of the subject, and independent of the sovereign’s
authority, it is not impelled, by the fear of immediate danger, nor the
apprehension of future punishment: and as to the prospect of glory,
applause, or respect, which push the generous and ambitious mind
to action, our governors aim to attain them, not by governing well,
but by acquiring and bringing home a mighty fortune to their own
country.
Men thus actuated, or rather unactuated, must, in the discharge of
their sovereign office, be perfectly torpid and listless; the machine of
political government stops in their hands, and stands stock still: their
minds being incapable of application, they withdraw themselves as
much as possible from attention, and leave the trouble of governing
to others, still less qualified than themselves; these inferior agents
being chosen, not for their abilities or virtue, but for their fitness to
serve the private purpose of the governors, otherwise by chance;
but they give themselves no trouble to inspect the conduct of these
agents, who in general are unprincipled miscreants; on the contrary,
they promiscuously approve and support every action; so that,
wherever the power of this government acts, it is only to oppress;
and all beside is left to chance. However, the power of governing, or
rather of oppressing, is not confined to the persons vested with the
charge of government: the numerous servants whom this Company
disperses over the face of the country, for the purpose of carrying on
her trade, do each of them, in his own district, assume the authority
of a despot; and communicates a like authority to all his servants
and dependants, who, it must be allowed, are far more unrelenting
than their masters; and thus tyranny is extended into every corner;

oppression becomes general; and the oppressed are excluded from
the very prospect of redress; for, on appeal to the superior, the
plaintiff is ever remanded to the very oppressor, who punishes him
for having dared to complain. And thus justice and protection are no
where to be found; vice goes unpunished, and innocence
unsupported; therefore every man becomes a villain in his own
defence; and faith, confidence, truth, and honesty are banished the
land. In short, it may with strict propriety be said by these wretched
people, Terras astræa reliquit; and tyranny and anarchy have here
set up their throne.
And to this inaction or non-exertion of the powers of government we
are to impute the ruin of those countries, rather than to the avarice
or rapine of the persons deputed by the Company to execute that
government. For the power of governing being vested in only a few,
the extortion of these few might have been long supported by a rich
commercial country, provided they had exerted themselves to
restrain and prevent all others from plundering and oppressing. The
avarice, profusion and bloody tyranny of even Nero, and Domitian,
was felt by only a few of their subjects at Rome; every where else
the empire flourished; because these imperial monopolizers of vice
would suffer none in power to be wicked but themselves; they
narrowly inspected the conduct of their governors and officers, and
severely punished their injustice or oppression. But where the
government doth not only plunder itself, but suffers every one under
it to plunder, that country must in time be completely ruined.
Now Bengal hath been subjected to a government of this nature for
these fifteen years past; for though we commonly date the
commencement of the Company’s sovereignty from the assumption
of the Dewanny, (as it is termed,) yet hath this Company (at least
her deputies) possessed a really absolute authority in those
countries ever since the battle of Plassey in 1757. That action
rendered them masters of Bengal; and it was equally within their
power to assume the sovereign government at that time, as
afterwards in 1765; their own will was the only obstacle: but
notwithstanding they bestowed it on a native Nabob, yet did they

retain an absolute superiority over him, and he governed in a state
of perfect subordination to their authority; for he well knew and
experienced, that the duration of his office, and even of his
existence, depended upon their will; consequently this dependent
native government could but little restrain the conduct of the
Company’s deputies, or protect the subject from their rapacity; and
when they, in 1765, set aside this native government, they only
removed a screen which they themselves had set up, and till then
preserved for their own purpose.
How far these countries may have advanced towards the period of
final ruin, under the fifteen or sixteen years domination of such a
government, we shall not pretend to determine, because the term
ruin is variously understood. This much is certain, that the
unbounded remittance of specie made, for some years, by the
English Company, for sundry purposes as sovereign; and for a much
greater number of years, and in much larger sums by the other
European Companies, who received it from the servants of the
English Company for bills on Europe, at a very low exchange, and
employed it for every purpose in the other parts of India and China,
hath compleatly drained Bengal of its wealth, and reduced it to a
state of the most abject poverty. And the grievous oppression and
rapine exercised by the Company’s servants, and their numerous
dependants; together with the most cruel monopolies usurped by
them over every species of merchandize, and even the necessaries
of life, hath in a great measure suppressed commerce, and
abolished trade. Whilst the insatiable avarice and unrestrained
extortion of those employed in the collection of taxes and revenue
having ruined the farmer, the lands lay uncultivated and waste;
insomuch that, not to mention the immense decrease of revenue,
that naturally most fertile of all countries, Bengal, hath suffered a
more severe famine than perhaps was ever heard of; it being
reckoned that a fifth part of the inhabitants have died of want, and
numbers have fled from starving and oppression.
But it is not difficult to determine how near the interest of Britain in
those countries hath approached to ruin: for Britain is to consider

them as ruined to her purpose, so soon as they shall become
incapable of supporting a commerce beneficial to her; and at same
time of yielding her a consideration, in the nature of tribute,
equivalent to the expence of subjects which she sends out annually
to maintain her dominion there. And that they are nearly, if not
totally, ruined to her, in both these respects, we begin already to
feel, in spite of all the art or influence used to conceal the truth.
For, in the article of tribute, we find that, instead of receiving such a
surplus of revenue as sufficed, at the commencement of the
Dewanny, to not only pay for the specie part of the Company’s
investment in Bengal itself, but to purchase her cargoes, and defray
all her charges in the other parts of India, and in China, the
government of Bengal was, two years ago, reduced to the necessity
of borrowing near a million sterling on bills, which have been
transmitted and accepted by the Company: in like manner hath this
government been obliged to borrow last year; though the bills have
been prevented, by an arbitrary stroke of deceit, from appearing
against them in Europe. These borrowed sums have all been
expended in Bengal itself: and if we allow that the whole hath been
employed to pay for the Company’s investment, (though by the by
the specie part of the Company’s investment cannot, at least it
ought not, if she exports the proper quantity of European
commodities, exceed half a million,) it must even then be admitted,
that the revenue of Bengal hath barely sufficed to defray the
ordinary expence of government. And, if so, from whence is the
tribute of Bengal, (whether we term it dedomagement, drawback, or
encreased dividend) to arise? not from the mighty cargoes imported;
for they are purchased, not with surplus revenue, but with borrowed
money, which must be repaid either in India or in Europe: and as to
the profits on these cargoes, they will be more than eat up by the
charges of freight, and a long reckoning of India interest at eight per
cent. I am sensible, that this account is strangely perplexed and
embarrassed by intricate calculations of stock in hand, annual
importations, and future sales, &c. but when divested of all these
studied intricacies it will stand simply thus—As is the clear surplus of

revenue received in Bengal, so will be the amount of tribute received
in Britain; the former will ever exactly balance the latter. But this
surplus we find to have been, for the two past years, equal to
nothing; and the amount of tribute received in Britain must amount
to exactly as much; consequently the dedomagement, drawback,
and increased dividend for the two last years is still in Nubibus;
where the national part, consisting of the two first articles, is like to
remain; unless it shall be paid out of the Company’s capital stock, as
the encreased dividend hath been. But this revenue, which for the
two years past hath barely sufficed to defray the expence of
government, hath not been kept up even to that extent without the
aid of violence: but violence itself must yield to necessity, and
cannot extort that which doth not exist; moreover the Company had,
in these two years, decreased her military expence, by disbanding
some thousand sipahis, and otherwise diminishing the charge of her
remaining force; and the attack made by Shaw Allum in conjunction
with the Mharrattors will, this year, compel her to re-augment her
military expence in every respect; whilst the predatory incursions of
these Mharrhattors will prevent the collection of revenue; how then
will she support the augmented charge of this year, with a revenue
decreased by a variety of causes so much below the degree of last
year? Another loan upon the strength of the capital is the only
resource; but possibly borrowing may, for several reasons, have
become impracticable by this time; and it is certain that troops will
not, nay cannot, serve without pay—Here is a blessed prospect
indeed.
But, leaving this to the proof of time, we perceive that, at any rate,
we have lost the prospect of future tribute from Bengal, through the
channel of the Company; we have not so much as the promise of
dedomagement, drawback, or encreased dividend for this current
year; and if we can trust to our own reason, preferably to bankrupt
promises, we may give it up for good and all. Nay, there is mighty
reason to apprehend, that even the private fortunes will soon cease
to exist; and then Britain will cease to receive the sum of 1,400,000
l. sterling, which for a number of years past hath been annually

flowing in to her from India, in consequence of dominion. And if she
could barely support her burden, when aided by this influx, how will
she, when deprived of it, answer the annual drain of specie made by
her foreign creditors?
With respect to the present state of our commerce with those
countries, it is not enquired, and therefore not known, whether the
Company exports the stipulated sum of British commodities or not;
and it is still less known, whether the small quantity she hath
exported of late is disposed of; or whether it remains in her
warehouses abroad, to swell up the account of her stock; thus much
however reason tells us, that the inhabitants of Bengal, who cannot
procure the necessaries of life, millions having died of want, can but
little afford to purchase foreign fopperies or superfluities.
Nevertheless we have seen large cargoes of Indian manufactures
imported this very year; but we are not to suppose, that these
cargoes are the produce of willing industry; they are procured by
force and compulsion; the artisan being held to work under the
discipline of task masters, who deprive him of his labour before it is
completed, at a price that will not afford him the means of living. Of
the many markets that for ages had taken off the manufactures of
Bengal, Europe is now the only one remaining; and this one market
cannot be supplied without the application of force. How long force
might supply the place of willing industry, we shall not pretend to
determine; but one year more will discover the united effects of
want of artisans, want of money, and Mharrattor incursions.
And thus have we demonstrated the nature and condition of this
Bengal government, together with the evils it hath caused to the
country governed, not from a recital of disputed facts, but from
principles universally understood and admitted. For every one, the
least acquainted with the Company’s affairs, must know and will
allow that the views, the interests, the powers and opportunities of
her deputed government in Bengal are exactly such as we have
described them; and upon this one undisputed datum we have built
our whole demonstration; the truth and justness of which every man
is capable of trying and proving, by the touchstone of his own

reason. For reason, without the aid of circumstantial proof, can
judge whether the line of conduct which we have assigned to the
government of Bengal, is fairly inferred and deduced from its evident
and allowed principle of action: and common sense, unassisted by
demonstration, will point out the effects that such conduct must
operate on the interest of the country governed; and, if we farther
advert to the length of time that this country hath been subjected to
such operation, we shall nearly guess at its present state and
condition.
And we doubt not, that what hath been said will enable every one,
who makes use of his own reason and reflection, to form a proper
judgment for himself on certain points of this East India business,
which have been most grossly misrepresented. For he will thereby
discover, that the object, for which the nation hath to apprehend at
present, is not the “credit of the Company;” which, had she been
restrained within her natural sphere, and her conduct properly
inspected by government, could never have been injured; or, if it
had, the breach could (in such case) have little more affected the
general weal, than the failure of any large trading house; which, so
long as the trade remained entire, would have been immediately
replaced by another; but he will perceive, that the present bad state
of the Company’s credit is only an effect, or consequence, of the
ruinous situation of affairs in India; and, of course, that the object of
national apprehension is the ruin or loss of that mighty and
important branch of national interest, which hath been committed to
the charge of the Company, in a manner so complete and implicit,
that the name, as well as the interest of the nation, nay the very
name of the object itself, hath been sunk and lost in that of the
Company: this Company, which is but the temporary farmer, having
been, to all intents and purposes, substituted in the stead of not
only the sovereign proprietor, but even of the farm itself. And it will
farther appear, that the danger which threatens this object is not to
be averted by blindly supporting the credit of the Company: but, on
the contrary, that the nation will, by affording this blind support, only
furnish the means of completing that ruin, which is already so far

advanced. To prevent this danger demands measures of a very
different nature: and we shall proceed to point out these measures;
which, had they been applied in time, would, we humbly conceive,
have sufficed to prevent the ruin or loss of this important concern:
and which, if matters are not past remedy, may yet serve to restore
them.

THE TRUE CAUSES OF EVIL AND ABUSE IN THE
GOVERNMENT OF BENGAL, AND THE MEANS TO
REMEDY THEM.
It is a common saying that, the cause of an evil being known, the
remedy is readily discovered; and, upon the strength of this maxim,
several, who think they have hit upon some one cause of evil in the
political government of Bengal, have taken upon them to prescribe a
remedy; which is pronounced an universal panacea, a salve for
every sore: but no sooner have they produced their ware, than the
eye hath discovered it to be mere powder of post; or something
equally unavailing.
Few of these prescriptions have at all attracted notice; the proposal
for protecting the liberty of the subject from the despotism of
government, by the institution of native juries, was indeed extremely
well calculated to please British speculation; and therefore, like the
device of hanging the bell about the cat’s neck, it was highly
applauded by those who never adverted to the difference betwixt
Britain and Bengal, in point of general constitution of government
and disposition of the natives. But, for practice, it must appear a
mere chimera to such as consider, on the one hand, that men, who
are slaves to their government and its officers in every other
capacity, cannot possibly be free in that of jurymen; and that juries,
if they are not free and impartial, avail nothing: and, on the other
hand, that if the natives should be actually endowed with the real
cap of liberty in the jury room, there is danger, nay, there is a
certainty, that they would make bold to wear it elsewhere; and then,
adieu to the English dominion in Bengal. In few words, the power of

the English government, and the freedom of native juries, are two
things that cannot possibly exist together in Bengal; the life of the
one must unavoidably cause the death of the other: and, however
harsh this doctrine may sound in a freeborn English ear, the force
and truth of it will immediately strike the politician.
Equally unavailing is that proposal for securing the liberty and
property of the subject, from the oppression and extortion of
government, by granting to the native a perpetual property in land;
without providing him the smallest security for the free possession of
its produce; which, so long as government stands on its present
footing, is liable to be wrested from him so soon as acquired.
But it would seem, that the reason why these political physicians
have been so unlucky in their prescriptions is, that they have
proceeded upon false principles; as having mistaken the nature of
the malady. For they have either assigned no one certain cause of
evil; or else they have traced it no farther than to the persons who
have executed the government of those countries, otherwise to the
Directors: as if all the evil had proceeded from some particular
viciousness in their disposition, as if they had been sinners above all
men, or as if no men would have done the wicked deed but they:
whereas he who is the least acquainted with human nature will
allow, that few, if any men, would have made any better use of their
powers and opportunities; nay he will add, that every other
government on earth, would act the very part that this Bengal
government hath done, provided it held the same views and
interests, together with the same powers and opportunities. And, if
so, what can be more absurd, than the proposal to remedy the evils
and abuses of this government, by sending out Supervisors, with the
same or greater powers, and consequently possessing greater
opportunities of promoting their own views and interests; which are
exactly the same as these of the persons complained of; seeing that,
as the same cause of evil which existed in the Governors, would
have existed in the Supervisors, these similar causes must have
operated similar effects.

Indeed we shall err widely, if we look for the original cause of evil in
these Governors: for, on inspecting the preceding description of this
Bengal government, we perceive, that their maladministration is
itself but an effect, or consequence, naturally flowing from the total
want of certain fundamental principles or powers; which, in every
other government, serve to restrain the party governing from doing
or permitting injury, and impel it to promote the good of the party
governed: and as the want of these restraining and impelling powers
hath unavoidably produced, the first tyranny, and the latter anarchy,
it is plain, that all the evils and abuses in the government of Bengal
have sprung from this deficiency. It farther appears, from the same
description, that the want of these restraining and impelling powers
arises from two different causes; the first being the particular
condition and constitution of the sovereign: and the second is there
termed the distance of situation, betwixt the sovereign residence
and the country governed; tho’ the sequel will evince this latter to be
rather a radical defect in the nature of that system, which the
Directors have adopted for the government of this distant dominion.
That these have been the two original causes of the tyranny and
anarchy, and consequently of all the evils and abuses in this Bengal
government, including these of the commercial despotism, is
sufficiently evident. We shall therefore proceed to point out the
means of removing these causes, as the only effectual method of
remedying the evils. And as each of the two causes hath contributed
its proper share of the evil, and each demands a distinct remedy, we
shall consider them separately.
With regard to the condition and constitution of the Company, we
have already mentioned the several circumstances that disqualify her
for the office of a supreme sovereign; here therefore we shall only
recapitulate, or collect them into one point of view. The first defect
is, her impotence, or want of power to promote good government in
her dominion: and this proceeds from her being, with respect to her
deputed government, a meer fellow subject, totally void of supreme
legislative and judicial powers; and consequently incapable of
inforcing obedience; or of punishing disobedience: and this want of

authority and power in the sovereign, we have shown to be a
principal cause of despotism in the deputed government. A second
defect in the constitution of the Company is her want of inclination,
or rather of interest, to discharge the duty of a good sovereign; and
this arises from the fluctuating and hourly mutable state of the
proprietary, the temporary and short duration of her corporate
existence, the still shorter tenor of this sovereignty, and the annual
rotation of her executive government; for, in consequence of these
several circumstances in her situation, her views are narrow,
contracted, and rapacious; the sole aim of all her measures being to
make the most of the present moment. The third defect is the
mercantile capacity of this sovereign Company; and from this defect
alone flow evils sufficient to ruin the interest of the country
subjected to her government: for, in consequence of her mercantile
capacity, her deputed government acts as a merchant; and, in
consequence of her sovereign capacity, all her mercantile servants
assume the authority of sovereigns.
These are the principal defects in the being and constitution of this
sovereign Company; and it is evident, that such defects in the
sovereign, must have contributed largely towards the existence of
abuse, in the deputed government. But these defects might have
been, in a great measure, remedied, and their consequences
prevented, by a simple act of parliament, past by the national
government, at the time it thought proper to commit the charge of
this important branch of national interest, to the care of the
Company. This act might have been entitled, “An act for better
enabling the East India Company to administer the political
government, and to protect, maintain and defend certain states and
countries in India, which have become subjected to the dominion of
Britain, and which, for sundry weighty considerations, it hath been
judged proper to commit to her charge.” And it might have been
conceived in the following, or such like terms.
“Whereas it appears, that the want of a proper legislative authority
over the ministers and servants, employed by the Company to
execute the sovereign government of these subjected dominions,

must be productive of many abuses, detrimental as well to the
interest of the Company, as to the honour and interest of the British
nation. Be it enacted by &c. that, from the time of passing this act,
the Company shall possess the power of legislation, or making laws,
for the government of this foreign dominion: and the laws thus
enacted by the Company, shall be equally binding on all her
ministers, servants, and subjects, in that dominion, as are the acts
of parliament on the subjects of Britain. And being farther sensible
of the many inconveniences, that must arise from the Company’s
incapacity of punishing the offences committed by her ministers, and
servants abroad, otherwise than by applying to courts of justice that
are foreign to her government; where she cannot convict, through
the difficulty of obtaining the evidence required by the forms of
these courts; and where she is deterred from prosecuting, by the
fear of divulging the secrets of her government; insomuch that,
rather than apply to these courts, she must submit to the most
audacious acts of disobedience, and maladministration; and
considering that such incapacity in the Company must discourage all
good government, and produce tyranny and anarchy in this
dominion; be it enacted, that the Company shall have authority to
erect courts of justice, and appoint judges; with the like powers, as
are vested in his majesty’s judges, and courts of judicature, for
trying and judging all suits and causes, or offences committed within
the limits of this Indian dominion; and for punishing the same, either
capitally, or by fine, imprisonment, and banishment, though to
Europe only. And whereas it is probable, that some of the ministers
or servants of the Company may, by various methods, elude the
justice of her courts abroad, and escape to Europe; in order
therefore to prevent such dangerous illusion of justice, it is enacted,
that the Company’s court of directors shall, on due information being
made to them, have power at all times to call before them such
escaping delinquents, and to try and punish them, for the offences
they may have committed within the limits of this Indian dominion,
in like manner as they could have been tried or punished by the
Company’s courts abroad. And because the liberty of appealing from
the Company’s courts of justice, to the judgment of any other

courts, must be productive of the same inconveniences to the
Company, as a trial of the same cause in the first instance would
have been, and must therefore deter the Company from ever
availing herself of the judicial powers granted by this act; it is
enacted, that delinquents shall have no liberty of appealing from the
Company’s courts abroad, excepting to the Court of Directors at
home, or to a general court of Proprietors; whose judgment in all
such cases shall be final. And as the Court of Directors have, and
may be, discouraged, from prosecuting or punishing the crimes of
their rich servants, by the fear of danger to their own private
interest, from a combination of the friends and abettors of such rich
delinquents at a future annual election, be it enacted, that the 24
Directors, being such at the time of passing this act, shall continue
in office, durante vita.
“And whereas it appears, that the liberty of daily selling, transferring,
and alienating the shares in the Company’s stock, of which this
sovereign dominion forms a part, tends to infuse into the proprietors
a spirit of rapacity, that may be productive of much damage to the
several interests concerned; and hath many other very pernicious
consequences; whilst it reflects disgrace on the dignity of all other
sovereigns; be it enacted, that no proprietor in this Company’s stock,
of which the sovereignty forms a part, shall have power to send his
share in the said sovereignty to market, like as it were a hog or
bullock, and to sell, transfer, and alienate the same; but that the
several proprietors of this stock and sovereignty, being such at the
time of passing this act, shall remain and continue proprietors,
without the power of alienation, except in the cases that shall be
hereafter specified.
“And whereas it hath been represented that the Company’s holding
this sovereignty by lease, and for a short term, may not only alienate
her care and prevent her from studying and promoting the lasting
welfare of the country, but may induce her to pillage, plunder and
waste it; be it enacted, that the Company shall hold the sovereignty
of this dominion, quamdiu se bene gesserit; to the end, that she

may consider and treat it, not as the property of another, but as her
own inheritance.
“And whereas the Company exercises traffic in this dominion; and, in
consequence thereof, her ministers do likewise traffic; and whereas
the exercise of traffic is evidently repugnant to a due discharge of
the duties of government, as being unavoidably productive of
destructive monopolies and oppression; all which it is impossible to
prevent, so long as the Company herself shall continue a merchant;
be it enacted, that this Company’s commercial charter shall be
dissolved; and she, and her ministers, shall be restrained from
trading or trafficking, directly or indirectly, within the limits of this
Indian dominion, under certain penalties to be mentioned in a new
charter, which shall be granted to this Company, constituting her the
United Company of English East India Sovereigns.”
These powers, grants, limitations, and restrictions, would have
qualified the Company, so far as the nature of things could admit, for
administring the political government; but, in her military capacity,
as the sovereign protector, maintainer and defender of this Indian
dominion, she hath been still less qualified, and would therefore
have required still more extraordinary powers. These however we
shall not specify, as apprehending, that what hath been already
demanded will shock. The grant of supreme legislative and judicial
powers to subjects, over their fellow subjects, must seem an absurd
communication of that which is incommunicable: the prohibition of
selling and transferring the shares of stock, would be termed a
tyrannical restraint on private property: the perpetual grant of this
sovereignty to the Company, must be deemed an unjust alienation of
the Crown’s and Nation’s rights: and the dissolution of the
Company’s commercial charter, would alter her very being and
nature. In short, if we regard the proposed act simply, it will appear
a collection of absurd inconsistencies, and ridiculous nonsense: but if
we consider it conjunctly with the cause or purpose for which it is
required, then every absurdity vanishes from the act, and centers in
the cause that renders it necessary. For we appeal to common
sense, whether every circumstance, specified in this proposed act, is

not indispensably necessary, to qualify the Company for the
sovereign office of administring the political government of this
Indian dominion: and, if that necessity is admitted, then doth the act
become a rational and necessary consequence, of government’s
having previously committed that sovereign charge to the Company.
Nay, we must take the liberty to add, that government, by
committing such a charge to the Company, and at same time totally
neglecting to capacitate her for supporting it, is in a great measure
accessory to all the ruinous consequences that have ensued from
her incapacity.
I am sensible it will be urged, that we proceed upon false premises;
for that government never considered these countries as subjected
to the dominion of Britain; that it never granted the sovereignty of
them to the Company; nor supposed her to be the sovereign; but
that it only acquiesced in her holding the Dewanny, on condition of
her paying a part of the revenues to the nation; and, of
consequence, that government never considered the inhabitants of
those countries as subjects to the government of Britain. But this is
a most flimsy evasion, like that of shutting our eyes to the sun, that
we may deny it is day: government granted to the Company a right
or permission to hold the Dewanny; which is explained to be, the
power of collecting and appropriating the revenues of Bengal; and,
in consideration of this grant, government demanded and received a
share of these revenues; government therefore, in its legislative
capacity, admits a knowledge, that the Company did possess the
power of collecting, and also of applying the revenues of Bengal, ad
libitum; and, amongst other purposes, to that of defraying the
charges of the military, as well as the civil, government: and
government well knows, that the power which defrays the charges
of the military and civil government, must hold the absolute direction
of both: and what constitutes sovereign power, but the absolute
direction of the military and civil government, together with the
disposal of the revenues? But, exclusive of the Dewanny contract,
the Company hath applied, in every other characteristic of a
sovereign, to government, in its legislative capacity: she hath

brought a bill into parliament, for the grant of certain military powers
and indulgences, for the better enabling her to defend, what she
there modestly, though vaguely, terms her territorial acquisitions,
(but which, by referring to the Dewanny contract, is explained to
include Bengal): and she hath applied for certain juridical powers
and grants, for the better administration of the jurisdiction, not in
her commercial factories, but over the whole country of Bengal:
therefore government hath been informed, in its legislative capacity,
by the Company herself, that she administred the military and civil
government, and appropriated the revenues of Bengal; consequently
that she was, in every sense and respect, the actual sovereign of
that country.
Now government could not be ignorant that the Company is a
subject to the national government of Britain; and that, as such, she
could have neither right, power, nor force to subject this dominion,
or afterwards to hold it in subjection, saving what she derived from
the national government; consequently government, as it
understood that these countries were subjected to the Company,
must have known that they were subjected to the dominion of
Britain. And as government did permit the Company to retain this
dominion; and furnished her with a military force, knowing it to be
for the purpose of maintaining dominion, it is plain, that the
Company hath held this dominion, no otherwise than by the grant
and support of government.
But if the Company be the sovereign of Bengal, the inhabitants
must, per force, be her subjects; and if the Company holds this
sovereignty as a subject to the government of Britain, by virtue of
the grant or permission of that government, and by means of a force
furnished by the same government, in what relation can this
government regard the inhabitants of Bengal? In that of subjects
surely; tho’ the degree hath, by the deed of government, been
somewhat implicated; like that of a child begot by the father upon
his own daughter. And subjects they have been to the government
of Britain, in every sense and meaning; they have yielded obedience
to those subjects of this government whom it appointed to rule over

them; and they have yielded the fruits, as well as the duties of
obedience.
But the government of Britain, which hath thus by force subjected
the inhabitants of Bengal to its dominion; which hath, for a series of
years, held them in subjection; and hath, all along, exacted from
them the tribute of subjection; hath withheld from them the
protection due to subjects. For it hath scrupulously withdrawn itself
from all regard or attention to their government; and hath left it
implicitly to the guidance of a few merchants; whom it knew to be
perfectly unqualified for administring any sort of government: in
consequence of which these wretched people have, for many years,
been ruled, without law, justice, or government. Unhappy subjects,
who are forced to obey a sovereign that refuses them protection,
and leaves them exposed to all the horrors of tyranny and anarchy.
It will nevertheless be still insisted that government could not,
without committing a number of irregularities and absurdities,
endow the Company in the manner specified; as also that the
Company, when thus endowed, would still have been altogether
unequal to the charge of regularly administring a sovereign
government. But surely government, if it would not or could not
capacitate the Company to regularly govern those countries, ought
not to have furnished her the means of oppressing, ravaging,
pillaging, and ruining them; to the disgrace of humanity, and the
indelible reproach of the British name. Government would have
acted a part far more consistent with the rules of honour and
humanity, if, instead of furnishing to the Company this military
power, it had restrained her from availing herself of the advantage,
gained by force and chance, over that mild, unwarlike, but
industrious people; and obliged her to leave them to their own
government.
But then the situation of affairs in those countries, where the nation
and Company held such a valuable commercial interest, rendered it
highly improper and dangerous to leave the native government to
itself: moreover the nation and Company could not, in such case,

have acquired the mighty wealth and other benefits that have been
derived from the conquest, or assumed dominion, of those
countries. Oh wealth, basely acquired, and foolishly applied! Was
there then no medium, no middle channel, thro’ which government
might have steered the Nation and Company to this same wealth
and benefits, clear of all these irregularities, incongruities,
inhumanities, and reproaches? Yes surely; and one so obvious and
conspicuous, that it is impossible to conceive how government could
be so industrious as to shun or miss it. Had the national government
taken upon itself the charge of superintending the government of
those countries, as reason and the nature of things directed, then
would it have furnished them a sovereign, naturally free from all the
defects of the Company, and completely endued with all the
qualifications of power, ability, and inclination from interest, to
protect and regularly govern them.
For it is plain, that the national government, possessing supreme
legislative, and judicial power, must have been capable of enforcing
obedience to the laws which it might have enacted for the good
government of those countries; and of punishing disobedience, not
only in the natives, but in the ministers whom it would have
employed to execute that government; as these must have been its
own subjects. And, on the other hand, the nation being an
immutable body, and holding this sovereignty in her own right, and
by perpetual tenor; her government must have been actuated, by
the strong motive of self interest, to exert itself in promoting the real
and lasting welfare of those countries. And as to the commercial
despotism, it could never have existed under the national
government.
It therefore follows, that the national government, being perfectly
free from all the defects of the Company, would, by the simple,
natural, and rational act of assuming the administration of
government in those countries, have prevented or reformed all the
several abuses or evils that have sprung from the defective
constitution of the Company, as sovereign. But besides the mighty
reform of abuses, that must have been immediately caused by thus

changing the person of the sovereign; there is another advantage,
which, though it cannot be said to spring directly from that change,
yet would it have ensued as a natural consequence of the national
government’s taking upon itself this sovereign charge; and that is,
the creation or institution of a new interest in that country; a sort of
middle state, betwixt the native subjects and their foreign
government.
The middle state here meant is the East India Company, (or which is
the same, her servants in Bengal;) which, being now reduced to the
condition of a subject, tho’ still retaining all her commercial
privileges and interests in that country, would have formed an
intermediate link in the political chain, serving to connect the natives
with their government, and government with the natives. For, in
every one circumstance that respected the liberty of the subject, this
middle state must have held precisely the same interest as the
natives; and, in consequence, the same inclination to oppose all
oppression of government: and, in every thing that respected the
real interest, the power, or honour of the sovereign, the community
of Natale Solum must have led it to support the measures of
government. Therefore, this middle state, holding a great weight in
that dependent dominion, (not indeed from its numbers, but from
the powerful support and influence of the Company, which would
have been still very respectable in the sovereign country,) must have
carried a mighty poise into the scale of liberty, in opposition to the
despotism of government; whilst, at same time, it would have
created no danger to the power of the sovereign. And a middle state
of this nature must have been of inexpressible utility; facilitating, in
many respects, the establishment of a regular political œconomy
in the government of these countries. For, in such case, the
sovereign could, with propriety, efficacy, and safety, have conferred
every reasonable privilege on the whole body of subjects in this
foreign dominion: seeing that the exertion of these privileges might
have been artfully confined to this middle state: and, as on the one
hand, this finesse would not have, in any shape, withheld the benefit
of these privileges from the natives; but, on the contrary, would

have rendered them more effectually useful to the whole body of
subjects, than if they had been committed either entirely or in
common to the natives; because the Company’s servants would,
from interest, have had the same inclination as the natives, to exert
these privileges for the common good; and they would have had
infinitely greater power, from their superior activity, intrepidity, and
firmness, as also from their superior opportunities of obtaining
redress elsewhere against any infringement made by government:
so, on the other hand, the authority of the sovereign could have
incurred no risk from these privileges in the hands of Europeans;
whereas there is great danger in attempting to confer on the natives
a power to controul even the despotism of government. With this
middle state the power of juries would have been effectual to the
subject, and harmless to the sovereign: however, we shall have
occasion to be more particular on this head in the sequel.
But if the national government could, by taking this sovereign charge
upon itself, have prevented or reformed these many evils and abuses
that have arisen from the defects of the Company; and could have
likewise created other such advantages, facilitating the
establishment of a regular government in those countries; what
reason can be assigned for government’s declining this charge, and
devolving it on the Company? Government could not surely suppose
that this important concern would be managed to greater national
advantage by the Company, than by itself: seeing that common
sense might have foreseen, what experience hath since proved, that,
under the management of the Company, the interest of Britain in
those countries would, in the space of a very few years, be
completely annihilated; that the countries themselves would either
be completely ruined, or otherwise lost to enemies; and that the
wealth, which was extorted from them by rapine and general havoc,
being imported into Britain in the hands of a few indiscreet
individuals, would create a torrent of profusion, extravagance,
luxury, and prodigality, that would sweep all before it into the gulf of
bankruptcy, perdition, and despair. Whereas, under the regular
administration of national government, those countries might have

been still preserved in a flourishing condition; and, in consequence,
still capable of yielding to Britain a tribute little inferior to the surplus
revenue which the Company received in the first year of the
Dewanny: which tribute, arriving immediately at the public treasury
of Britain, and being there applied to the diminution of taxes, and
consequent reduction of the price of necessaries and labour, would
have proved a gentle universal shower, reviving our decayed and
drooping manufactures and commerce.
But neither could government be induced to confer this sovereignty
on the Company, by any motive of regard to the true interest of the
proprietors: seeing it was palpably evident that this charge, being so
unmeasurably superior to her powers of supporting it, must
unavoidably crush her to ruin, and, along with her, the countries
subjected to her rule; and, it is to be feared, even that community of
which she forms a part. Whereas, if the national government had
taken into its own hands, and carefully administered the government
of those countries, whilst it continued the Company in possession of
her commercial privileges, she would have continued to divide, in
the first place, the six per cent. which her commerce, (unaided by
revenue) afforded; even when burdened with the necessary expence
of a small military force maintained for the guard of that commerce
in those foreign countries, and which must have been equal to four
per cent. on her capital: but this commercial military expence being
rendered in a great measure unnecessary, by the immediate
protection of national government, the saving thereof would have
added two per cent. to her dividend: and the equivalent, which
government would have paid for her fortresses, munition, &c. being
added to her capital stock, would have encreased her dividend
nearly one per cent. more; whilst her stock itself would, at this day,
have been really, and intrinsically worth 220 l. instead of ........ its
present real and intrinsic value.
It would be insulting the understanding of ministry, to suppose that
it had been restrained from assuming this sovereign charge, by any
delicacy of regard to the ideal right of the Company; derived from
either conquests, as subjects; or from the sham grant of a man, who

had not power to dispose of a single bega of land, nay, not of a
cocoa-nut-tree in that country; and consequently whose grant of the
sovereignty of Bengal could contribute nothing more to investiture or
possession, than his grant of the crown of Britain could. Though if
we should (for the sake of argument) suppose, that ministry had
really admitted some such right, we must still esteem its
acquiescence in that right a most absurd and wildly mistaken
indulgence; seeing it evidently tended to the ruin of the party whom
it meant to favour.
There hath been, however, one weighty argument against
government’s assuming this Indian charge, which is, the danger
arising to national liberty from government’s, (or, in other words, the
crown or ministry’s) acquiring such an accession of influence, as
must arise from the possession of the many emoluments, places,
posts, &c. annexed to this Indian charge: whereas liberty is
completely secured from such danger, whilst the Company possesses
it. And the certainty of this double maxim, viz. the danger from
government’s possessing this charge, and the security whilst it is in
the hands of the Company, is as generally established as almost any
one human principle: for, being violently enforced by those whose
personal views lead them to oppose administration, and at same
time not simply allowed, but even inculcated by ministry itself, it
hath been readily credited by those who, their personal interest not
being so deeply concerned, were less curious to investigate the
truth.
It may be deemed presumptuous in an individual, to question the
orthodoxy of a maxim so powerfully enforced by one party, readily
allowed by the other, and almost universally credited: tho’ the
extraordinary circumstance, of two violent rival parties concurring so
exactly on a point, where their personal interest seems to be so
materially and so oppositely engaged, would lead a bystander to
suppose, that either one of the two parties must be mistaken; or
otherwise, that one or both must misrepresent: at any rate, that
uncommon instance of candour, in ministry’s preaching up a doctrine
so repugnant to that which it pretends to be its own personal

interest, would induce such bystander to suspect its sincerity.
However, as a right understanding of this point may considerably
import the public, at this critical juncture, I shall venture disclosing
my sentiments, at the risk of censure for prolixity, as well as
impertinence.
With regard to the first part of the maxim, I conceive that the
danger to liberty, from government’s holding this charge in its own
hands, is supposed to arise from the influence which the minister
would acquire, over the two subject branches of legislature, (those
bulwarks of liberty) by means of the many emoluments, places,
posts, &c. annexed to the possession of that charge. But before we
admit that the ministers holding this charge would be creative of
that dangerous influence, we ought to be satisfied that he doth not
already possess it, by other means; for, if he doth already possess
such influence by other means, it is plain that the Indian charge
cannot confer it; nor will it avail to shut one door, whilst there are
others open to admit him. And that the minister hath long been in
full and plenary possession of such influence, we have ever heard
asserted by these very men who so loudly enforce the danger of his
acquiring it, by means of this Indian charge: nay, we have much
better authority than their contradictory assertions, (even that of
fact and daily experience,) for believing that the minister hath and
doth possess posts and places, and that, on any emergency, he hath
in his power other means equally effectual, towards creating and
holding such influence, in a degree as plenary and complete as his
own heart can desire. And, if the minister doth already possess such
influence by other means, it is plain, that the Indian charge cannot
confer it; nor will it avail to shut one door, whilst there are others
open to admit him. And that the minister hath been long in full and
plenary possession of such influence, we have ever heard asserted
by those very men, who so loudly enforce the danger of his
acquiring it, by means of this Indian charge: nay, we have much
better authority than their contradictory assertions, (even that of
fact and daily experience,) for believing that the minister hath and
doth possess posts and places, and that on any emergency he hath

in his power other means equally effectual, towards creating and
holding such influence, in a degree as plenary and complete as his
own heart can desire. And, if the minister doth already possess an
influence so fully sufficient, it must be allowed that, in so much as
respects parliamentary influence, this Indian charge would be a
thing superfluous and useless to him; like meat to a man that hath
already filled his belly; the absence of it can withhold nothing that
he wants, and the acquisition cannot confer more than he already
possesses. I may venture to add, that we certainly hold our liberty
by some latent security, more powerful than that of parliament itself,
which neither the minister’s influence over parliament, nor posts and
places, will ever induce him to attack, or enable him to subdue; for
that, otherwise, we should have been divested of our privileges and
liberty long ago. And, upon considering these several circumstances,
I conclude, that if this Indian charge was in the hands of
government to-morrow, it would neither enable, nor induce the
minister, to attempt a jot more against our liberty, than he hath
done, can do, and will do, without it. However, by way of reinforcing
my argument, I shall add that, if the plan which I mean to propose
should be carried into execution, it would leave but few of these
emoluments, &c. to the immediate disposal of the minister; and,
possibly, this declaration may but little recommend it to his favour.
But still, if we were to admit a real danger to liberty from the
minister’s possessing these emoluments, &c. it remains to be proved
that liberty hath been, is, and will be secured from such danger, by
the Company’s holding that Indian charge. And, when the nature of
this security comes to be examined, I apprehend it will be found
more difficult to prove this latter part of the maxim, than the former.
For it is notorious that, ever until the late distraction in the
Company’s affairs, the arbitrary application of these emoluments,
posts, &c. was vested in the Directors; and indeed the entire powers
and interests of the Company; insomuch that the Directors might,
with propriety, be termed the Company. So that the whole security
of national liberty, and, of course, the sole obstruction to the
minister’s dangerous views, depended on the integrity and

independent spirit of 24 Directors; of whom, again, one or two
generally leads all the rest. Consequently, to come at the fingering of
these dangerous emoluments, &c. the minister had only to subvert
the integrity, or subdue the independance, of these Directors. And,
to effect this, a minister possessed more than one infallible recipe.
By artfully joining the mighty influence which he held in the
Company’s stock thro’ his numerous dependants, to one or other of
two parties contending violently for the direction, he could reduce
both to a perfect dependance on himself: by the same means he
could hold them in subjection: but still more, by the awe of wresting
from them the sweet management of this Indian sovereignty, which
they were sensible he could do by a word. And thus he could work
upon their fears. But inclination would naturally and powerfully lead
the Directors to throw themselves into the arms of a minister; not so
much for his immediate assistance; tho’ even that might be of great
use, for rendering matters easy with the proprietors, as well as
parliament and the nation; but because, on these terms, they
secured, in him, an omnipotent supporter and all powerful advocate,
against the day of distress, which they well knew must come, and
that soon: whereas, otherwise, they must lay their account with
finding him a severe judge, and bitter prosecutor.
By these several operations on the hopes and fears of the Directors,
it was extremely easy for a minister to render them as pliant as a
glove; as obedient as a spaniel, to fetch and carry at bidding. And
the Directors being once reduced to this state of dependance, it is
evident, that the minister must possess a full and arbitrary power
over all the emoluments, posts, places, &c. appertaining to this
Indian charge. But the disposal of the present emoluments, &c. was
a trivial matter, compared with other advantages, which this Indian
business, whilst in the hands of the Company, presented to an artful
and enterprising minister. For, under the plausible and indeed
undeniable pretext of qualifying the Company for administring this
sovereign charge, he might have drawn from the legislature certain
military as well as political powers; which, being gradually
augmented as occasion offered, might have at last established a sort

of power, in this government, distinct from and independent of the
legislature: the exertion of which power, being confided to the
Directors, would in fact have rested with the minister. Here indeed
was a real danger to liberty; provided it had been possible to hold up
this Indian business, in the hands of the Company, for any length of
time; for, notwithstanding I consider national liberty as inexpugnable
to the open assaults of a minister, yet, from such a secret convenient
and commanding post as this mentioned, he might have made
frequent sly and successful incursions on the confines of liberty;
which would have greatly straitened her quarters, and wasted her
strength.
On the other hand, if that Indian charge had been vested in the
national government, liberty must have been perfectly secured from
this last mentioned danger; for, in such case, there could have been
no pretext for demanding these extraordinary distinct powers; and,
consequently, no opportunity of establishing that truly dangerous
imperium in imperio. And even in the application of the ordinary
powers, emoluments, &c. a minister must have been subjected to
many troublesome checks, and restraints. His Majesty, who can have
no views distinct from the general interest of his people, must have
held a principal voice in every measure; as likewise must some
others his counsellors. Parliament too must have proved an
inconvenient restraint on a minister; particularly in the article of
estimates and accounts of revenue, which must have been
submitted to its inspection; and notwithstanding the certainty of
carrying points by a majority of voices, yet, as there will ever be
some refractory members, these might have carried tales to the
public; which, provided this charge had been in the hands of
national government, would have judged itself interested in the
affair; and would therefore have taken the liberty to criticise his
measures, or censure his misconduct. Whereas, this business being
secured, as private property, in the hands of the Company, king,
parliament, and nation were all excluded from participation: the
proprietors alone had a right to examine measures or accounts; and,
the majority of them upon all questions being mercenary retainers to

ministry and the direction, they must have ever been a mere servile
pecus. So that the business might have been snugly confined to
three or four ministerial associates, with their faithful dependants in
Leadenhall Street; whilst the minister needed never appear in the
affair; free from care, charge, or trouble; and irresponsible for either
measures, or consequences; he might enjoy all the sweets, without
the least alloy of bitter.
Sure I am if I had been minister, and minded to make a job of this
Indian business, I would certainly have exerted myself most
sedulously to preserve it in the hands of the Company. And, to divert
the nation from ever turning her eye towards it, I would have
strenuously inculcated the rights of the Company, national faith, the
impossibility of conducting this business otherwise than through the
Company; and, above all things, I would, by my emissaries, have
alarmed the public, with fears of danger to their liberty, should this
business ever come into the hands of government; whilst, by the
same canal, I would have trumpeted forth my own candour,
disinterestedness as a minister, indifference to power, and delicate
regard to national liberty and private property, in thus disclaiming an
object so replete with ministerial advantages, which was within my
power. And thus would I have continued the game, until it was up:
and then I would have directed the enquiries, which decency and
regard to appearances extorted from me, in such a manner as to
suppress, instead of investigating: though, at same time, I would
have boldly expressed my indignation at the Company’s misconduct;
and loudly denounced vengeance against the individuals that had
shared in the plunder; not a soul that was guilty should escape. And,
to wind up the whole affair dextrously, I would have tasked my own
powers, and those of my myrmidons, to represent all these Indian
acquisitions as a transitory, casual, and accidental piece of business;
which was altogether out of our tract; and which, if the nation had
ever engaged in maintaining them, would have ruined and
exhausted her: and so the nation was to thank me, for withholding
her from ruin.

In this manner, I say, would I, who am a reptile, have acted, had I
been minister, and minded to make a job of this business: but I am
far from intimating or insinuating that our ministers, who are men of
high birth and strict honour, could be capable of admitting even a
thought of taking such base advantages. All that I have said is only
meant to show, that a minister, if he had the inclination, possessed
an infinitely fairer opportunity, of converting this business to sinister
purposes, whilst it was in the hands of the Company; than he
possibly could have had, from the same business, under the conduct
of national government. And, from thence, I would infer that, had
this business been in the hands of government, our liberty, nay and
our property too, would have been secured from many dangers, to
which they have been exposed, whilst this business hath been in the
hands of the Company.
I cannot then conceive what other objections could be started
against government’s taking upon itself the charge of this Indian
dominion: unless it be the old trite arguments of timid sluggish
indolence, want of enterprize, &c. That, the distance of situation
rendering it impossible for Britain to properly maintain and govern
this dominion, it would become an object of no true value or
importance, but rather a heavy load exhausting her strength. But it
is now more than time for the nation to recal her faith from men
whom she hath sufficient ground to suspect of deceit; and, rousing
her senses, to take the liberty of trying these matters by the
standard of her own reason; which we shall endeavour to aid by the
following hints.
To properly demonstrate the true value and importance of this
Indian dominion to Britain, would demand a volume; we have, in the
first part, presented a slight sketch of it; here therefore we shall
offer only one or two remarks respecting its importance to our
finances; and though we do not offer these remarks as the result of
exact calculation, yet will they serve to throw a light on this subject.
Ever since the last war Britain hath paid annually to foreign
creditors, in interest, about 1,500,000 l. and this is paid, not in
paper, but all in hard money; or, otherwise, in what is equivalent, the

stoppage of so much hard money as is reckoned to come into Britain
by the balance of her trade. On the other hand, the net specie
balance of trade with all the world, (exclusive of that part which
strictly and properly may be termed the produce of Indian
dominion,) after deducting the imperceptible and enormous drain of
specie made by smuggling, doth not at this day perhaps amount to
800,000 l. The difference then betwixt her numerical specie
disbursement and receipt in balance of trade, must needs have been
made good from some other fund than the circulating stock of
specie, otherwise circulation must in that number of years have
totally ceased. And this fund we need not mention to have been the
dominion in India. Ever since 1757, the private fortunes acquired
there in consequence of dominion or conquest, having been remitted
either in bills on foreign Indian companies, or in diamonds, have
created an annual influx of specie, (or what is equivalent,) to the
amount of at least 700,000 l.[1]
The Company too received since that
period, and previous to the Dewanny, though by virtue of dominion
or conquest, sundry large sums of money; which she invested in
merchandize; and, thereby, saved to Britain so much specie as she
would, otherwise, have transmitted for the purchase of such
merchandize; and it doth not require demonstration to prove, that all
such saving is, in every respect, the same as the influx of an equal
sum. And ever from 1765, till some time in 1770, the Company paid
for all her cargoes, not only in India but in China, with the surplus
revenue of Bengal: and of course this surplus revenue hath, for that
space, saved, (which is the same as gained) annually to Britain, the
whole sums which the Company used to transmit for the purchase of
her cargoes in India and China; and which, on an average, may be
reckoned 500,000 l. per annum: but these cargoes were, from 1765,
encreased to an enormous degree; and if we add only 200,000 l. for
such encrease, we shall find that the surplus revenue of Bengal
hath, by the return of trade, created an annual influx to Britain of at
least 700,000 l. in specie: and this, added to the private fortunes,
makes 1,400,000 l. received yearly by Britain, from Indian dominion.

But, for these two years past, the ruinous situation of those
countries, and the consequent deficiency of revenue, hath obliged
the Company to either transmit money from Europe, or otherwise to
borrow money abroad, on bill or bond, for the purchase of all her
cargoes in India as well as China: and the Company, by thus
borrowing, for the purchase of cargoes, and even the expence of her
government, hath absorbed the private fortunes, which, till then,
had been transmitted to Britain, by bills on foreign companies. We
must therefore perceive, without descending to tedious
investigation, that the ruined state of those countries, having cut off
surplus revenue, hath, for these two years past, diminished the
annual influx to Britain from Indian dominion, at least one half, or
700,000 l. And this diminution of influx, whilst our drain continues
the same, we already begin to feel in our circulation: though this felt
effect is not yet traced up to its cause. Of what mighty importance
then must this Indian dominion have been, to the circulation of
Britain: when this circulation feels severely, from only two years
partial deprivation of the benefit formerly derived from that
dominion? And what effect must a total deprivation of that benefit
operate, in a few years, on this circulation; whilst, we are continuing
to pay to our foreign creditors about 1,500,000 l. per annum in
numerical specie; exclusive of other less noted drains, which, it is
most probable mount it up much higher? And yet it is evident, that
Britain must, unavoidably, be deprived of this whole benefit, so soon
as she shall lose her dominion in India; whether that loss shall be
caused by enemies, or by the ruin of the countries subjected. Nay,
by losing the dominion of Bengal singly, she must not only incur a
deprivation of almost the whole dominion benefit; but she must
likewise lose by far the most valuable part of that commerce, which
was carried on by the Company with those countries, previous to
dominion. For the commerce with Bengal, alone, is of much greater
value, than that with all the rest of India: and, as to the trade with
China, it is the most pernicious and losing trade to the nation;
however convenient it may be to government.

And if we shall then advert to the benefit and support which the
finances of Britain have received from this Indian dominion, for so
many years past, though under the most preposterous
management; but, still more, if we shall advert to the nature and
degree of benefit that, under proper management, might have been
derived in perpetuum from this Indian dominion, in not only the
article of finance, but in other weighty respects: and, if we shall, yet
farther, look forward to the dismal consequences that must
unavoidably ensue to Britain in these several respects, from a
deprivation of this Indian dominion and its benefits; can we tamely
surrender our reason to the ipse dixit of men who are hardy enough
to tell us, that Indian dominion is of no value nor utility to Britain.
Nor do these men less abuse our understanding, by holding forth
the difficulty of maintaining and defending this dominion: seeing
that, of all nations in the world, Britain is, by a variety of
circumstances, the best qualified to maintain and defend maritime or
commercial dominion in India. For, as she exceeds all the world in
naval force, she is, through that circumstance alone, the most
capable of defending such dominion, against the assault of European
enemies: and had Britain availed herself of evident advantages, had
she established her naval and land defence upon the plan that shall
be explained, British dominion in India might, at this day, have been
secured from even the attempt of European rivals: they might have
admired and envied, but they would not have dared to attack. And
these European rivals are the only dangerous enemies to British
dominion in India: for as to the neighbouring native powers, they
would, from fear as well as inclination, have been amicable to
Britain; provided her government in those countries had acted with
common honesty, and common decorum, or prudence; and not as
common robbers. And, as to the unhappy native subjects
themselves, their loyalty hath been sufficiently proved, by so many
years patient submission to the most intolerable of all possible
governments. Wherein then consists the difficulty of maintaining and
defending British dominion in India?

And with regard to the so much talked of expence or drain of native
strength, we may surely, with good reason, say that this objection
militated much stronger against maintaining that dominion under the
Company, than under national government: tho’ the nature and
extent of even that drain under the Company, is most grossly
misrepresented. For I am well informed that the Company’s annual
recruit, since the time she completed her dominion force, hath never
exceeded 1200 men; and I am afraid it hath in general fallen short
of 1000; notwithstanding she laboured under many disadvantages,
from which national government would be exempted: such as being
obliged to put up with very indifferent and unhealthy recruits, for
want of better; too little attention paid to the manner of transporting
them; and still less to their health and manner of living in the
country: whilst her governors expended numbers of them on
unnecessary predatory wars. And even this recruit we are not to
reckon a drain of real strength from Britain: seeing that, the
Company’s recruits have been mostly fellows of the most desperate
circumstances, who had no means of subsisting at home; and who
therefore would, if the Company had not taken them off, have been
taken off by the gallows, or otherwise would have emigrated to
America or some other country, in search of bread; and would thus
have been equally lost to Britain. So that, upon rationally considering
this matter, we shall find that, for the maintenance of dominion in
India, the Company hath not drained this country, of 100 men
annually, that could, in any sense, be termed useful, or a real
strength to it. But, setting aside the precedent of the Company, it is
certain that, to maintain and defend the mighty dominion of Bengal,
demands an European force very little superior in number to the
garrison of that barren fortress Gibraltar: and to maintain and
defend the whole territorial possessions, together with the
commerce of Britain in India, requires a force very little exceeding
the aforesaid garrison with that of its filler fortress in Minorca. And
the annual recruit, necessary to keep up this force, after allowing
largely for climate, and every other circumstance, would, on a
complete plan of defence, not exceed 900 or at most 1000 men:
and, of this recruit, at least 200, would be wanted annually to

maintain commerce, if there was no dominion. Nay, if this is judged
too great a drain for Britain, one fourth part of that number may be
reduced, by recruiting that proportion of foreign protestants: such
being easily procured; and, in such a low proportion, they can in no
respect be dangerous. And can Britain, regard 6 or 700 men
annually as too great a drain, for the maintenance of that important
dominion and commerce, which is as one of the capital limbs of her
body; and at same time bestow a nearly equal share of her strength
on maintaining these two barren, and I had almost said useless,
fortresses; the pecuniary charge of which she pays out of her proper
finance, never to return; whilst Indian dominion defrays its own
charge.
The only remaining objection then to Indian dominion is, the
difficulty of properly governing it. But this difficulty doth not arise,
like that in America, from the indomitably obstinate spirit of the
subjects; on the contrary, it arises from their over passive or
submissive disposition, and incapacity of resisting the power of
government: and this, instead of being an objection, is the most
valuable qualification of a dependent dominion. To remove this
difficulty demands no exterior aids, no exertion of powers or force; it
depends entirely on the will of the sovereign; and a very little art, a
very little care, with a little honesty, would serve to completely
remedy it; as we doubt not to evince.
In fine, Bengal, being one of the richest commercial countries is, to
Britain as a commercial nation, the noblest and most truly valuable
acquisition that providence could possibly bestow on her: by the
mild disposition of its inhabitants it is the most facilely governed and
maintained; and, by the nature of its situation, it is the most
defensible foreign dominion on this globe; particularly to Britain
which excels in naval force. And one may almost venture to say that
providence, by throwing Bengal into the arms of Britain, seems to
have intended that this, the richest commercial state in Asia, which,
through the effeminacy of its inhabitants, is incapable of maintaining
its own independance, should be subjected to Britain, as being the
fittest, through similarity of commercial disposition, interest, and

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