Sunday, May 8, 2011

Economic Condition of Bengal after British Victory

After the victory of the British power in the war of Plassey, the region of this portion of India became gradually disconnected from the rest of India and also from all sorts of trade connections from the other parts of western countries. Before the entry of the British Bengal had trade relations with the countries of south-east Asia. Now all trade relations had been occupied by British. The domestic business affairs also was under British control.The Indian traders got some opportunity being converted as brokers of the British and could get big investments.The British had driven away the Indians from all economic affairs. Before the possession of British power the most important investments of the Indian money lenders and the big banians had the relations of the revenue collections in the treasury of Murshidabad. But the treasury was shifted from Murshidabad to Calcutta and the influence of Jagathseth and his heirers. To increase and centralise the control of the Government on the system of revenue collection Warren Hastings closed down all the mints of Dhaka , Patna, and Murshidabad on 1773-1774. Thus the manufactue and the control of coins and currency laid down extremely in the hands of government.
From that moment Jagatseth and the members of his family began to ruin.The process gradually accelerated after the establishment of three banks at Calcutta. The banks began to issue bank notes, giving loans and other duties of revenue collections.