The course of events that happened after Clive's victory in the battle at Palashi (Plassey) on June 23 1757 points to the prosperity of Bengal at that time. This was the first battle of the British against a princely state on the Indian Subcontinent, leading India towards 190 years long slavery. It was a sham battle. The battle was lost by soldiers who did not fight. Not even a single bullet was fired. The story of torrential rain drenching the nawab's ammunition and the British protecting their own with tarpaulin brought from Madras is a plain lie. Nawab's men are more aware of the weather pattern in Bengal than the British and they knew how to protect themselves and their paraphernalia from an impending rain.
After the battle, Clive immediately plundered Siraj’s treasury, leaving new Nawab Mir Jafar with nothing. Moreover, the new puppet Nawab was asked to pay a heavy amount as compensation to company officials and traders of the city for the attack on Calcutta by previous ruler and also for the black hole tragedy. Clive took a jagir, an endowment of tax revenue for life and became one of the richest men in England. The Mughal emperor, Shah Alam II, recognized British power and gave the Company official authority to collect taxes, making the Company the virtual rulers of Bengal.
England soon became a sink of Indian wealth filled by the junior and senior servants of the East India Company.
Money played a major role in wars all over the world
The vast majority of payments were made in specie (coins minted from gold and silver). Paper money was not yet widely accepted. The gold and silver coins looted by Clive was used in the expansion of empire in India. The specie collected from across the world were lent to the British government by the BEIC during the Napoleonic Wars that were highly expensive.
After 1757, the BEIC were having plenty of unaccounted money or black money. This money was used to create highly destructive wars throughout the world. The Indian economy continued to be haunted by the problem of black money until the Demonetization in November 2016.
The very first beneficiary of Nawab's treasury, looted by Clive, was Hyder Ali of Mysore who was a petty officer in the Mysore army. The Mysorean treasury was virtually bankrupt at the time of Plassey battle. Hyder Ali scored points from this financial breakdown. In 1757 Hyder Ali was called to Seringapatam to join the fight against Nizam and the Marathas. Upon his arrival he found the Mysorean army in disarray and near mutiny over pay. It was Hyder Ali who arranged for the army to be paid. In 1758 Hyder Ali led successful campaigns against Marathas and Calicut. By 1759 Hyder Ali was in command of the entire Mysorean army. The young raja Krishnaraja rewarded Hyder Ali's performance by granting him the title Nawab of Mysore. He became the de facto ruler of Mysore as Sarvadhikari (Chief Minister) by 1761.
The question is how did Hyder Ali arranged the money?
The specie coins looted by BEIC was loaned to Hyder Ali through his French associates. After 1757, the British in India became predominantly powerful and the French had no option except to accept the British hegemony. After the third Carnatic war, the French agreed to support British client governments. It should be remembered that the French and British traders in India were not enemies after 1757. They mutually communicated and helped each other. The Second Opium War (1856-1860) against China was jointly fought by the British and French forces.
Why did the British help Hyder who was opposed to the British expansion?
The British and French traders were eying the vast treasures of gold in the temples of Kerala. They used the Mysore Sultans as proxy conquerors. Both Hyder Ali and Tipu were guided and closely monitored by the French generals. There were two French commanders known as Lally and Pimoran advising Haider and Tipu at the Battle of Pollilur in 1780. Tipu's forces were also joined by his French allies in some of the key events of the conflict, including the siege of Mangalore in 1783. When the French government at home signed the Treaty of Paris in 1783, the French soldiers in India officially became the friends of British, leaving Tipu's Mysore in an uncomfortable position. His French allies, by observing strict neutrality, had deserted him at all crucial moment in the war with the British. In the hope of attracting further French support, Tipu established a Jacobin club at Mysore in 1797, adopted a liberty red cap and styled himself as Citizen Tippoo.
A King who was a Jacobian - https://samharshbangalore.blogspot.com/2013/05/a-king-who-was-jacobian.html
But for Tipu's campaigns in Kodagu and Kerala against native kingdoms, his French allies extended their military, financial, political, diplomatic support and equipped him with modern weapons like highly armed cannonade contingent. This can be proved by the endless iron cannon balls that can be found in the Nalnad region of Kodagu even today.
Coorg was strategically, a buffer zone which linked Mangalore and Malabar. Kodavas were the master of the guerrilla warfare hence they succeeded every time in ambushing the enemy. Tipu first invaded Kodagu with his well-equipped 15000 army men carrying French Cannon with an intention of conquering Kodagu overnight. The troop of 5000 Kodavas retaliated, defeated Tipu’s army and chased them out of Kodagu. Likewise Tipu was defeated by Kodavas 31 times.
Tipu decided to conquer Coorg by hook or by crook. So he hatched a cowardly plan with the the French. Tipu with the help of General M. Lally requested Kodavas to make peace stating his real enemies are the British and Marathas and not the Kodavas. He invited all Kodavas unarmed for a friendly feast. On 13th December 1785, more than 125 thousand Kodavas gathered at Devattparamb on the banks of Cauvery river. When the sun set behind the mountains of Kodagu, the French forces and Tipu’s soldiers hiding behind forest shrubs attacked the unarmed Kodavas and slaughtered them in cold blood like how Colonel dyer killed people at Jallianwallah bagh.
This pillage turned entire Coorg into a graveyard. Over 60,000 Kodavas were massacred in Devattparamb and around 65,000 Kodava survivors including women and children were captured. Among them the women were raped and children were forcefully converted. The scale of the massacre was so huge that the water in the Cauvery river turned red for 12 consecutive days
Tipu's cavalcade in North Malabar was led by the French Commander Monsieur Lally. In December 1789, Tipu Sultan attacked the Travancore lines (a defence fortification by the side or Periyar river) from the north, signalling the commencement of the Battle of Nedumkotta. Even though the Travancore state had a protection treaty with the British, the company troops stationed near Nedumkotta became passive spectators. While Tipu regrouped, Madras Governor Holland engaged in negotiations with Tipu rather than mobilizing the military. The secret pact hatched by Tipu and Holland clearly shows that Tipu never had any enemity with the British.
https://en.wikipedia.org/wiki/Nedumkotta
Tipu's attack was successfully repulsed by the Travancore soldiers alone. The Mysore army suffered major casualities in this battle and Tipu himself became permanently lame. Tipu's waterloo started here.
Again in 1790 Tipu planned the attack on Travancore using special troops called from Srirangapatam and Bangalore. The Travancore army was no match for the huge Mysore army. So the Diwan Raja Kesavadas thought out a different game plan. A temporary bund, like a small dam, was constructed upstream in Periyar River blocking large quantity of water. The victorious march of the Mysorean army reached Aluva and camped on the banks of Periyar River. However by this time, during night, a small group went upstream and managed to break the walls of the dam at Bhoothathankettu causing heavy flash floods downstream of the river. All the ammunition and gunpowder of Tipu's army got wet and became inactive. At the same time the British army was planning an attack on Srirangapatnam. Hence Tipu was forced to leave Malabar never to return.
Even though Travancore soldiers played a major part in decimating Tipu's might, the Raja of Travancore was not involved in the peace treaty concluded after the third Anglo Mysore war. The Marathas and Nizam were allowed to partake the spoils of war. When the Diwan of Travancore complained this, the response from the British was that since the war was initiated for the protection of Travancore, the state must pay for the entire war expenses.
The British were more scared about the fighting spirit of the Nair soldiers of Kerala and Sikhs of Punjab. The Travancore state single handedly beating Tipu's army was not fully liked by the British. The strategy used by the British to bring Travancore to its heels was to squeeze the treasury of the state. The state had to pay heavy amount to the British and this continued until independence.
The gold looted from temples during the Malabar campaign was stored in the Treasury at Srirangapatanam. After defeating the Mysore army in 1799, the British lifted the entire gold and carted away in clipper ships to Europe. It is preserved in the underground vaults of Bank of England.
Waterloo of Tipu - https://submergedhistory.blogspot.com/2017/11/the-waterloof-of-tipu-sultan-at.html
The plot for a bloody revolution in Paris (French Revolution) was also hatched in London. The gold looted from Kerala and Kodagu by Tipu's French allies were used for funding the Jacobins Club of Paris. The Reign of Terror (1793 – 94) by Jacobins resulted in the death of tens of thousands of innocent people in France. Tipu Sultan himself was a member Jacobins club.
The British Origins of the French Jacobins - https://journals.sagepub.com/doi/abs/10.1177/0265691414546456
When the Jacobins Club lost its acceptance among people of Europe, especially after its reign of terror, the club was dissolved. Napoleon was promoted instead. Napoleon was expected to do a deadly campaign of loot and plunder in Europe just like how Hyder Ali and Tipu Sultan conducted their military campaign in Kerala. Instead Napoleon turned against the practice of usury or money lending and soon became an enemy of the British. The British war against Napoleon was enormously expensive. Troops had to be paid, and weapons, rations had to be purchased. The vast majority of this payment had to be done in specie - coins minted from gold and silver. Paper money was not yet widely accepted, and a steady flow of hard cash was essential for the British war effort. The BEIC came forward to lent money to the British government and gold and silver coins from across the world poured into England.
Money that paid for all wars is GOLD - https://ageofrevolution.org/200-object/coins-that-paid-for-the-battle-of-waterloo
The other impacts of Plassey battle are
The British decided to give up its tax income from American colonies because the revenue from Bengal was comparatively much higher. America was not an industrialized nation then. Agriculture was the predominant occupation. The American colonies seperated from Britain in 1776.
The industrial revolution in Europe started soon after the Plassey victory. The wealth from the subcontinet and precious vedic knowledge were stolen and used for pure commercial advancement. The museums in London and Germany are keeping many of the stolen relics and artefacts from India.
Despite an incomplete conquest, the Company ruled most of India by the early 1800s by replicating the Bengal model elsewhere, creating compliant puppet rulers so that it could rule territory efficiently, inexpensively and irresponsibly. But the British failed to subdue the Sikhs in the Punjab, the last holdout, until 1848.
How did Clive win the battle?
The local bankers like Jagat Seth, Omichand and Armenian money lenders helped Clive. Armenians are believed to have arrived on the bank of Hooghly before the East India Company's Job Charnock decided to establish a British trading post in Calcutta. In the 18th and 19th centuries they ran trading companies, shipping lines, coal mines, real estate and hotels.
There were several notorious pedlars and kingmakers in Clive’s Bengal — quite a few of them Armenians.
It was also an Armenian, Khojah Israel Sarhad, in the court of Mughal emperor Farrukh Sayar who helped the East India Company get their Grand Firman in 1715, that first granted them duty-free trading rights in Bengal. Earlier in 1688, the English company accessed the Mogul court with the help of an Armenian in the Mughal court.
Without Armenians, the victory at Plassey would have been a mirage for Clive and the Company, especially after the chaotic situation of 1756. After the Black Hole tragedy of Calcutta -
In the dark days succeeding the sack or Calcutta and the tragedy of the Black Hole, an Armenian merchant secretly supplied the British fugitives who had taken refuge in their ships down the river at Fulta, with boat loads of provisions for six months. If not for the humane Armenians, the British fugitives might have been starved to surrender. And in the momentous days before the famous battle of Plassey, the same Armenian was employed by Clive to negotiate with Mir Jaffar.
It was during Akbar’s reign that the Armenian’s wealth and influence grew. Akbar is not only believed to have had an Armenian queen, he also had an Armenian doctor and chief justice.
Also read the book, Armenians in India From the earliest times to the present day By Mesrovb Jacob Seth, 1937 - https://www.rarebooksocietyofindia.org/book_archive/196174216674_10152469741581675.pdf