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The year 1799 opened by the discussion of this new scheme of revenue. It was a mode of making every man tax himself by stating the amount of his income, on which he was to be charged ten per cent., with the exception only of such persons whose incomes were less than two hundred pounds per annum, who were to be charged less than ten per cent. It was to include all who had more than sixty pounds a-year. Pitt calculated the income of the nation at a hundred and two million pounds, which would thus produce a revenue of ten million pounds. To make this excellent device the more palatable, the increase in the assessed taxes made in the preceding Session was to be repealed. To such a degree did the nation trust the great Minister, that this tax was carried through both Houses with comparatively little difficulty.The winter of 1836-7 was marked by great commercial activity, and a strong tendency to over-trading, chiefly on the part of the banks. The result was a reaction, and considerable monetary embarrassment. In the reckless spirit of enterprise which led to these consequences, the American houses took the lead. The American speculators indulged an inordinate thirst for gain by land jobs, and over-trading in British produce. The most remarkable examples of this were afforded by three great American houses in London, called "the three W.'s." From an account of these firms, published in June, 1837, it appeared that the amount of bills payable by them from June to December, was as follows: Wilson and Co.,[411] 936,300; Wigan and Co., 674,700; Wildes and Co., 505,000; total acceptances, 2,116,000. This was upwards of one-sixth of the aggregate circulation of the private and joint-stock banks of England and Wales, and about one-eighth of the average circulation of the Bank of England. The shipments to America by Wigan and Co. amounted to 1,118,900. The number of joint-stock banks that started into existence at this time was remarkable. From 1825 to 1833 only thirty joint-stock banks had been established. In that year the Charter of the Bank of England being renewed, without many of the exclusive privileges it formerly enjoyed, and the spirit of commercial enterprise being active, joint-stock banks began to increase rapidly. There was an average of ten new companies annually, till 1836, when forty-five of these establishments came into existence in the course of ten months. In Ireland there were ten started in the course of two years. The consequence of this greatly increased banking accommodation produced a wild spirit of commercial adventure, which collapsed first in America, where the monetary confusion was unexampledbankers, importers, merchants, traders, and the Government having been all flung into a chaos of bankruptcy and insolvency. This state of things in America had an immediate effect in England. Discounts were abruptly refused to the largest and hitherto most respectable houses of Liverpool and London. Trade, in consequence, became paralysed; prices suddenly dropped from thirty to forty per cent.; and the numerous share bubblesthe railway projects, the insurance companies, the distillery companies, the cemetery companies, the sperm oil, the cotton twist, zoological gardens, and other speculationswhich had floated on the pecuniary tide, all suddenly collapsed, and there was an end to the career of unprincipled adventurers. It is satisfactory, however, to observe that the sound commerce of the country soon recovered the shock thus given; and in less than two years the pecuniary difficulties had passed away. Commerce had resumed its wonted activity, and flowed steadily in legitimate channels. The American banks resumed payment, and the three great American houses, which had involved themselves to such an enormous extent, were enabled to meet all their liabilities.

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THREE:All being ready, on the 6th of January Wellington suddenly pushed forward to Gallegos, and[26] on the 8th invested Ciudad Rodrigo. Nothing could be more unexpected by Marshal Marmont, who had never suspected any attack in winter, and had placed his army in cantonments, and had, moreover, sent several divisions to distant points. On the very first evening Wellington stormed an external redoubt called the Great Teson, and established his first parallel. On the 13th he also carried the convent of Santa Cruz, and on the 14th that of San Francisco. He then established his second parallel, and planted fresh batteries. On the 19th he made two breaches, and, hearing that Marmont was advancing hastily to the relief of the place, he determined to storm at once, though it would be at a more serious exposure of life. The assault was rapid and successful, but the slaughter on both sides was very severe. A thousand killed and wounded were reckoned on each side, and one thousand seven hundred prisoners were taken by the British. What made the British loss the heavier was that General Mackinnon and many of his brigade were killed by the explosion of a powder magazine on the walls. General Craufurd of the Light Division, was killed, and General Vandeleur, Colonel Colborne, and Major Napier were wounded. Much ammunition and a battering train were found in Ciudad Rodrigo. Marmont was astounded at the fall of the place. The Spanish Cortes, who had been so continually hampering and criticising Wellington, now created him Duke of Ciudad Rodrigo. He was also, in England, advanced to the dignity of an earl, and an annuity of two thousand pounds was voted him by Parliament.

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THREE:LORD BROUGHAM.

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TWO:The Russians began their retreat, but some of them not till daylight, and then marched close past Eylau, in the very face of the French, who were, probably, as much astonished as pleased at the spectacle. Benningsen could scarcely have known the extent of the French losses, when he decided to retire. But Buonaparte, notwithstanding that he claimed the victory, was glad now to offer a suspension of hostilities to the King of Prussia, with a view to a separate peace, hinting that he might be induced to waive most of the advantages derived from the fields of Jena and Auerst?dt, and restore the bulk of his dominions. Frederick William, however great the temptation, refused to treat independently of his ally, the Czar. On this, Buonaparte, so far from pursuing the Russians, as he would have done had he been in a capacity for it, remained eight days inactive at Eylau, and then retreated on the Vistula, followed and harassed all the way by swarms of Cossacks. On this Benningsen advanced, and occupied the country as fast as the French evacuated it. The Emperor Alexander could soon have raised another host of men, but he was destitute of money and arms. He therefore applied to Britain for a loan, which the Talents thought fit to decline. This, at such a crisis, was unwise. It is certain that it filled Alexander with disgust and resentment, and led to his negotiations with Buonaparte at Tilsit. Soon after this the Conservative or Portland Ministry came in, and supplies of muskets and five hundred thousand pounds were sent, but these were, in fact, thrown away, for they did not arrive till the Czar had made up his mind to treat with Napoleon.

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WATERLOO VIEWS.The advice of Pitt prevailed. Ministers determined to bring in two Acts in accordance with his counsels: an Act declaratory of the supreme[189] power of Parliament over the colonies, and another repealing the Stamp Act, on the plea which he had suggested. The Declaratory Act passed readily enough, for all parties agreed in it; but the repeal of the Stamp Act met with stout opposition. Grenville, with the pertinacity of a man who glories in his disgrace, resisted it at every stage. When he was hissed by the people, he declared that "he rejoiced in the hiss. If it were to do again, he would do it!" In the Lords there was a strong resistance to the repeal. Lord Temple, who had now deserted Pitt, supported his brother Grenville with all his might. Lords Mansfield, Lyttelton, and Halifax, the whole Bedford faction, and the whole Bute faction, opposed it. The king declared himself for repeal rather than bloodshed.During this long period Sir Christopher had been busily employed in raising many other buildings; amongst these, the Royal Observatory, Greenwich; St. Bride's; St. Swithin's; the Gateway Tower, Christ Church, Oxford; St. Antholin's, Watling Street; the palace at Winchester, never completed; Ashmolean Museum, and Queen's College Chapel, Oxford; St. James's, Westminster; St. Clement's, Eastcheap; St. Martin's, Ludgate Hill; St. Andrew's, Holborn; Christ Church, Newgate Street; Hampton Court Palace, an addition; Morden College, Blackheath; Greenwich Hospital; St. Dunstan's-in-the-East, tower and spire; Buckingham House, since pulled down; and Marlborough House.At length, after every clause of the Bill, and every word and every place in each of the schedules had been the subjects of all possible motions and discussionsafter a warfare which, for animosity and duration, was unparalleled in our Parliamentary history, the Bill was read a third time on the 21st of September, and passed by a majority of 109, the numbers being 345 to 236. The result was received with loud and long-continued cheering by the Reformers in the House. The anxious and impatient multitude in the streets caught up the sounds of triumph with exultant enthusiasm; the acclamations of all classes of the people rang throughout the agitated metropolis. The news spread like wildfire through the country, and was everywhere received with ringing of bells and other demonstrations of joy. As soon as the Bill passed an illumination of London was proposed, and an application was made to the Lord Mayor, in order to obtain his sanction, which was granted. The illumination was extensive, and those who refused to comply had their windows broken by the populace. In many places the people, whose patience had been so severely tested, began to lose their self-control, and were betrayed into riotous conduct. Mr. Macaulay, and other leading Reformers in Parliament, had warned the Opposition of this danger, and it turned out that their apprehensions were not altogether visionary.[340]When he was removed, it was evident that the temporising system would do no longer. The head of the Cabinet must take one side or the other. The Prime Minister must be a friend or an enemy of progressa Reformer or an anti-Reformer. In these circumstances the king had great difficulty in forming an Administration. The prostration of Lord Liverpool had come upon the political world "with the force of an earthquake," convulsing parties in the most violent and singular manner, and completely changing the aspect of affairs at Court and in the State. The Sovereign had before him, on one hand, Mr. Canning, the leader of the House of Commons, the most popular Minister, the most brilliant statesman in England since the days of Pitt. How could he put aside his claims to be Prime Minister? On the Tory side there was no statesman to whom the post could be safely entrusted. If Eldon could be kept in his place as Lord Chancellor, it was as much as could be expected at his time of life. The Duke of Wellington's military character, as well as his anti-Catholic feeling, prevented his being placed at the head of an Administration. Mr. Peel was considered too young to occupy so great a position. The latter was consulted, and gave it as his opinion that an anti-Catholic Ministry could not be formed. The issue was, that, after a fortnight's anxious suspense and difficulty, the king entrusted Mr. Canning with the formation of a Ministry. The task which he undertook was extremely delicate and difficult. He was greatly disliked by the chiefs of both parties. He belonged to no old aristocratic house. He had risen to the first position in the State by his genius and industry, by the wise and beneficent application of the most brilliant and commanding talents. These excited intense jealousy among those whose principal merit consisted in hereditary rank. When he had received the king's orders, though aware of their feelings towards him, he dealt with them in a frank and generous spirit. He wrote to his colleagues individually, courteously expressing his desire that the public service might still enjoy the advantages to be derived from the exercise of their administrative talents. Most of them answered evasively, pretending that they did not know who was to be Prime Minister, and postponing their decision till they had received that information. As soon as they learnt that they were to serve under Mr. Canning, the entire Administration, with very few exceptions, resigned. Mr. Peel did not share the antipathies of his aristocratic colleagues. Mr. Canning declared that[258] he was the only seceding member of the Government that behaved well to him at this time; and so high was his opinion of that gentleman that he considered him to be his only rightful political heir and successor. He was not deceived on either of those points. Mr Peel, writing confidentially to Lord Eldon, on the 9th of April, expressed his feelings frankly, and they did him honour. His earnest wish was to see the Government retained on the footing on which it stood at the time of Lord Liverpool's misfortune. He was content with his own position as Home Secretary. Though differing from every one of his colleagues in the House of Commons on the Catholic question, he esteemed and respected them, and would consider it a great misfortune were his Majesty to lose the services of any of them, "but particularly of Canning." He was willing to retire alone if the rest of his colleagues, who did not feel the same difficulty, would consent to hold office with Canning. He advised the king that an exclusive Protestant Government could not be formed. He also said that he was out of the question as the head of a Government under the arrangement that he considered the best that could be made, namely, the reconstruction of the late Administration, "because it was quite impossible for Canning to acquiesce in his appointment." He was, however, ready to give Canning's Government his general support.
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