The Half-Loaf System

In the two centuries leading up to India's actual independence, there were certain acts that made it a longtime struggle. Step by step, everything was conquered. An example of this was today's initiative from British India.

Youngest Prime Minister of Britain- William Pitt; Image Source: Britannica

Almost every Indian was deeply affected by the formation of a single company that took away 200 years of India's freedom. The company that once controlled South Asia was not merely restricted to some revenue strategy but was the reason for bringing in a tremendous social revolution that defines the structure of India we see today. This was the lesson that India needed to learn and cope with external prejudices while asserting itself as a separate nationality.

For Britishers, it was the English East India Company that played a critical role in realising their victory over India, as they began to establish diplomatic and commercial relations with the subcontinent. Even though it is true that Britishers excelled in their practice of organising work, there is no doubt that they achieved a distinct feat when they reached Bengal.

In addition to enjoy more monopolistic authority over India, the focus of the company shifted to gain political power and cover a broader part of Indian society.

As a new government was being formed, it was vitally important to apply the British principles of governance right from the beginning, while eradicating the widespread corruption within the company officials in Bengal.

The company, however, was in debt and sought financial assistance. Profit-hungry Britishers thereby exercised power in Bengal, Bihar, and Odisha through revenue collection.

This was the time when the British Government seized the opportunity and declared that it must be regulated by law so as to avoid illegal practices in trade affairs.

In 1773, 'The Regulating Act' was finally passed, which was designed in such a way that the company could be closely supervised by the government and directors would report all internal affairs to Britain. With the implementation of the act, Warren Hastings became the first Governor-General of India. Slowly but gradually the Britishers were holding up the prime positions.

After the appointment of the Governor of Bengal, it was sure that this would lay the foundation for a central administration in India, but the Britishers had control over them before this could happen.

The Act, however, didn't work smoothly as expected and many rectifications were required to settle the internal disputes and illegal activities. The majority members of the Council consistently opposed Warren Hasting's administration in Bengal.

The level of corruption remained the same as before since members of the council apparently took bribe from zamindars. The wide jurisdiction of the Supreme Court additionally drew the attention of everyone.

Parliament, therefore, felt the immediate need for remedial measures to necessarily prevent the company before the new government as formed would collapse.

At that time William Pitt was the prime minister of Britain who modified the previous law and introduced a new bill with the updated clause in 1784. He majorly focused on simplifying the operations of the company while ensuring proper control. The memo supported the establishment of a Court of Judicature in order to set up a more efficient and effective method of hearing cases involving company matters with an easy breakout. Hence, to administer the affairs of the British East India Company and to maintain British control over Indian possessions, this bill was passed.

It was called a Half-loaf System because its purpose was to mediate between the British government and the Company.

The Bill later came to be known as Pitt's India Act, which was passed under the orders of King George V. It made possible the parliamentary control of the company until it was taken over or owned completely by the crown. While it was passed on 13th August 1784 with mutual consideration, the act had a structure of dual governance with split authority and responsibility.

As Britishers kept moving with these strategies and occupying the political powers, India had severely fallen into the pit of colonialism, which made it even more difficult for them to retake control.

Over time, the East India Company assumed the presidency powers and plotted plans to fully run the Indian administration.