and for the orphans of natives, and he developed the system of grants in aid, which insured the existence of many of these struggling institutions. He promoted the improvement of the harbour of Bombay, co-operated in establishing direct telegraphic communication with England, and lent support to the railway from Bombay to Rajputana, Delhi, and other parts. The development of these excellent works was chiefly due to Frere. But the circumstances of the time contributed largely to their success. The American war had suddenly raised the price of cotton and thrown an enormously increased business into the hands of the Bombay growers and merchants. The sudden inrush of wealth produced a feverish desire for speculation. Many new companies were started, and their shares rose to enormous premiums. One of the most rational undertakings was the ‘Back Bay Company,’ which undertook the reclamation of the land covered by the shallow water of the bay. The shares advanced to an absurd price. On the condition that a site should be provided on the reclaimed land for the terminus of the Baroda Railway, the Bombay government took four hundred shares. The government of India refused to sanction this transaction, and the shares on which 200,000l. had been paid up were sold in the market for 1,060,000l. When high mercantile authorities were carried away by this excitement, it is not surprising that Frere should have partially adopted their view, or that the directors of the Bank of Bombay, among whom were always two ex-officio members of the government, should have sanctioned advances to individuals whose business profits at the time were admitted to be enormous. At length the bubble burst. In June 1865 the restoration of peace in America caused the price of cotton to fall as suddenly as it had risen; a panic followed, and the speculative companies collapsed. The market was instantly flooded with paper, and the bank authorities, becoming alarmed, called in their advances. The history of the bank during this period was one series of disasters. In 1863, at the beginning of the speculating mania, a new charter was conferred upon the bank, and this charter unfortunately omitted several checks and safeguards which had been enforced under the older act of 1840. The choice of secretary was made unwisely, and under the weak administration of this gentleman, and the careless supervision of the directors, the conduct of the business of the bank was mainly conducted by a native broker named Premchund Roychund, who drew unlimited advances for himself and his friends without either offering or being asked for the proper security. Rumours of the reckless conduct of the bank managers were current in London and Calcutta before they reached the ears of Frere on the spot. Twice Sir Charles Wood, the secretary of state for India, wrote warning Frere of the state of things, and the Indian government repeatedly addressed him on the same subject. On receipt of Sir Charles Wood's letters Frere gave the government directors stringent orders to see that the charter was on all points complied with, and, with a view to checking the superabundant speculation, he brought in a bill for the abolition of ‘time bargains,’ and forbade the members of the civil service to gamble in shares. But the inquiries of the Calcutta government as to the condition of the bank did not receive so ready a response, and it was not until a commission was appointed that the government of Bombay consented to allow the required information, which they regarded as unduly inquisitorial, to be given. Nothing, however, that was done was able to check the ruinous career of the bank. Having been of late managed on the Scottish system, it had been customary to make advances on personal security only. Finding, however, when the crash came, that it was impossible to recover at once the moneys lent out, the directors demanded securities for the amounts, and were compelled in many instances to receive as such the shares of wrecked companies. Though the failure of the bank was staved off for a time, it came at last. In January 1866 a petition was presented for winding up its affairs, when it was found that 1,889,933l. of the paid-up capital was lost. The ruin wrought by this failure was widely spread. Frere's conduct during the crisis has been adversely criticised; but the crash was inevitable. No individual action could have averted it.
Throughout this trying period Frere never relaxed from his philanthropic labours. With the able help of Lady Frere he inaugurated female education at Bombay. During the five years that Frere was at Bombay, Government House was freely thrown open to native gentlemen and their wives.
In 1867 Frere, having been appointed a member of the Indian council, returned to England. The crown conferred on him the order of G.C.S.I., and Oxford gave him the honorary degree of D.C.L. He became a member of the council of the Geographical Society, of which he was appointed president in 1873, and in 1872 he was elected president of the Asiatic Society. The university of Cambridge conferred on him the degree of LL.D. in 1874. But it was in matters directly
