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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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Wellington proceeded to put Badajoz into a strong state of defence, but he was soon called off by the movements of Marmont, who, in his absence, had advanced and invested both Ciudad Rodrigo and Almeida. Wellington left General Hill to watch the south, which was the more necessary as Soult was in strong force at Seville, and Victor before Cadiz. That general had made a vigorous attack on Tarifa towards the end of December, but was repulsed with much loss by Colonel Skerrett. Hill, who had about twelve thousand men, made a successful attack on some strong forts near Almaraz, on the Tagus, erected by the French to protect their bridge of boats therethus closing the communication between Soult in the south and Marmont in the north. In these satisfactory circumstances, Wellington[27] broke up his cantonments between the Coa and the Agueda on the 13th of June, and commenced his march into Spain with about forty thousand men. Of these, however, one column consisted of Spaniards, on whom he wisely placed little reliance, and his cavalry was small and indifferently officered in comparison with the infantry. Marmont had as many infantry as himself, and a much more numerous and better disciplined cavalry. As Wellington advanced, too, he learned that General Bonnet, with a force upwards of six thousand strong, was hastening to support Marmont. That general abandoned Salamanca as Wellington approached, and on the 17th the British army entered the city, to the great joy of the people, who, during the three years which the French had held it, had suffered inconceivable miseries and insults; not the least of these was to see the usurper destroy twenty-two of the twenty-five colleges in this famous seat of learning, and thirteen out of twenty-five convents. Troops were left in different forts, both in the city and by the bridge over the river Tormes, which forts had chiefly been constructed out of the materials of the schools and monasteries. These were soon compelled to surrender, but not without heavy loss. Major Bowes and one hundred and twenty men fell in carrying those by the bridge. After different man?uvres, Marmont showed himself on the British right, near San Christoval, where he was met by a division under Sir Thomas Graham, who had beaten the French at Barrosa. Fresh man?uvres then took place: Marmont crossing and recrossing the Douro, and marching along its banks, to cut off Wellington from his forces in Salamanca, and to enable himself to open the way for King Joseph's troops from Madrid. This being accomplished, and being joined by General Bonnet, he faced the army of Wellington on the Guare?a. On the 20th of July he crossed that river, and there was a rapid movement of both armies, each trying to prevent the other from cutting off the way to Salamanca and Ciudad Rodrigo. On that day both armies were seen marching parallel to each other, and now and then exchanging cannon-shots. The military authorities present there describe the scene of those two rival armiesmaking a total of ninety thousand men, and each displaying all the splendour and discipline of arms, each general intent on taking the other at some disadvantageas one of the finest spectacles ever seen in warfare. The next day both generals crossed the river TormesWellington by the bridge in his possession, the French by fords higher up. They were now in front of Salamanca, Marmont still man?uvring to cut off the road to Ciudad Rodrigo. On the morning of the 22nd Marmont, favoured by some woods, gained some advantage in that direction; but Wellington drew up his troops in great strength behind the village of Arapiles, and Marmont extending his left to turn the British right flank, Wellington suddenly made a desperate dash at his line, and cut it in two. Marmont's left was quickly beaten on the heights that he had occupied, and was driven down them at the point of the bayonet. Marmont was so severely wounded that he was compelled to quit the field, and give up the command to Bonnet; but Bonnet was soon wounded too, and obliged to surrender the command to General Clausel, who had just arrived with reinforcements from "the army of the north," of which Wellington had had information, and which induced him to give battle before he could bring up all his force. Clausel reformed the line, and made a terrible attack on the British with his artillery; but Wellington charged again, though the fight was up hill; drove the French from their heights with the bayonet once more, and sent them in full rout through the woods towards the Tormes. They were sharply pursued by the infantry, under General Anson, and the cavalry, under Sir Stapleton Cotton, till the night stopped them. But at dawn the same troops again pursued them, supported by more horse; and overtaking the enemy's rear at La Serna, they drove it inthe cavalry putting spurs to their horses, and leaving the foot to their fate. Three battalions of these were made prisoners. As the French fled, they encountered the main body of Clausel's army of the north, but these turned and fled too; and on the night of the 23rd the fugitives had reached Flores de Avila, thirty miles from the field of battle. The flight and pursuit were continued all the way from Salamanca to Valladolid.
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TWO:[See larger version]But though the abandonment, for the present, of this enterprise, so fondly cherished by France, was calculated to cast a damp on the country, Buonaparte had another project ready which flattered the French pride of conquest. This was to seize on Egypt, as the preliminary to the fall of Britain. He had for some time entertained this idea, and had written from Italy to the Directory on the subject in the previous September. To insure the real destruction of England, he said, they must make themselves masters of Egypt. Malta and Corfu must be seized first, and for this purpose he conceived eight or ten sail of the line and twenty-five thousand men would suffice. The possession of Egypt, he contended, would draw all the commerce of the East thither, instead of taking the circuitous route by the Cape of Good Hope. He had thoroughly inspired Talleyrand with his scheme. Egypt was imagined to be much more wealthy than it was, and there were monuments of ancient art for Buonaparte and his right-hand bandit, Monge, to lay hands on. The Directory, which was extremely unpopular, uneasy at the presence of so popular and daring a person, were glad to be rid of him anywhere, the farther off the better. There were not wanting counsellors who already advised him to perpetrate a coup d'tat, and place himself at the head of affairs; but Buonaparte, not at all averse from the prospect, replied, "The pear is not ripe." He knew that, however popular with his own army, he was looked on with jealousy by the army of the Rhine, which served under, and prided themselves in, Moreau. He knew that the middle classes hated him for sweeping them away with grape-shot in the affair of the Sections. He hoped to make[465] himself yet more popular and more necessary, and that in the meantime the Directory would have completed their full measure of odium. He now therefore plunged into arrangements for this grand conquest of the East.
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ONE:Numbers of persons fled from the different towns to the frontiers of Holland, trade became stagnant, manufactories stood empty; the whole country began to assume a melancholy and ruinous aspect. Many of the refugees, formed into revolutionary clubs by French emissaries, were prepared not merely to oppose Joseph's despotism, but all monarchical government whatever. A powerful body of these placed themselves under the leadership of Van der Noot, a lawyer, who assumed the title of plenipotentiary agent of the people of Brabant; and of Van der Mersch, an officer who had served in the Seven Years' War, who was made their commander-in-chief. These two men were in league with the new Assembly of Breda, and issued their proclamations. These Trautmansdorff caused to be burnt by the executioner. The patriots in Brussels who sympathised with those in arms were, many of them, arrested; the citizens were disarmed, the fortifications strengthened by palisades, and every means of defence was resorted to.
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TWO:This destruction accomplished, the mob marched away to the house of Priestley, which was at Fair Hill, where they utterly burned and destroyed all the invaluable library, philosophical instruments, and manuscripts, containing notes of the doctor's further chemical experiments and discoveries. Fire-engines were called out to prevent the flames of the meeting-houses from spreading to the adjoining houses, but they were not suffered to play on the meeting-houses themselves, nor does any effort appear to have been made to save Priestley's house. The doctor and his family had made a timely retreat. He himself passed the first two nights in a post-chaise, and the two succeeding on horseback, but less owing to his own apprehensions of danger than to those of others. An eye-witness said that the high road for fully half a mile from his house was strewed with books, and that, on entering the library, there were not a dozen volumes on the shelves; while the floor was covered several inches deep with torn manuscripts. This was the work of the night of the 14th of July, and the riots continued from Thursday to Sunday; among the buildings destroyed being the paper warehouse of William Hutton, the historian of the place, and the author of several antiquarian treatises. Hutton was a man who had raised himself from the deepest poverty, for his father was a poor stocking-weaver of Derby. He had found Birmingham without a paper warehouse; had opened one, and, by that[385] shrewdness and carefulness in business, which are so conspicuous in his "Autobiography," and afford a valuable study for young men, had acquired a competence. He was not only an honour to the town by his upright character, and reputation as a self-taught author, but he had been an active benefactor to it. He had been the first to establish a circulating library in the town; was always an advocate and co-operator in works and institutions of improvement, and was the most active and able commissioner of the Court of Requests. His only crime was that of being a Nonconformist, and an advocate of advanced principles.



< ST. JUST. (After the Portrait by David.) Our Relations with ScindeOccupation of the CountryNapier in ScindeEllenborough's InstructionsA New TreatyCapture of Emaum-GhurThe Treaty signedAttack on the ResidencyBattle of MeeaneeDefeat of Shere MahommedSubjugation of ScindeNapier's Government of the ProvincePosition of the SikhsDisorders in GwaliorBattle of MaharajporeSettlement of GwaliorRecall of Lord EllenboroughSir Henry HardingePower of the SikhsDisorders on the Death of Runjeet SinghThe Sikhs cross the SutlejBattle of MoodkeeBattle of FerozeshahThe Victory wonBattle of AliwalBattle of SobraonTerms of PeaceAdministration of the LawrencesMurder of Vans Agnew and AndersonRenewal of the WarBattles of Chillianwallah and of GoojeratCapture of MooltanAnnexation of the Punjab.The Greeks had been struggling to emancipate themselves from the tyrannical dominion of the Turks, aided in their war of independence only by the voluntary contributions and personal services of enthusiastic friends of freedom, like Lord Byron. At length, however, the sanguinary nature of the contest, and the injury to commerce by piracy, induced the Great Powers of Europe to interfere in order to put an end to the war. Accordingly, on the 6th of July, 1827, a treaty was signed in London by the Ministers of Great Britain, France, and Russia, for the pacification of Greece. In pursuance of this treaty, a joint expedition, consisting of British, French, and Russian ships, entered the Bay of Navarino on the 20th of October, with the object of compelling the Sultan to concede an armistice, in order that there might be time for effecting an arrangement. The Sultan, Mahmoud, having declined the mediation of the combined Powers, and Ibrahim Pasha having received a large reinforcement of troops from Egypt, he was ordered to put down the insurrection at every cost by land and sea. He had accordingly recommenced the war with fanatical fury. All Greeks found in arms were to be put to the sword, and the Morea was to be laid waste. The combined fleet of the Allies had received orders to demand an armistice, and if this were refused by the Turkish admiral, they were to intercept the Turkish supplies, but not to commit hostilities. When the Turkish fleet met the Allies, the futility of these instructions became evident. They found it ranged at the bottom of the bay, in the form of a crescent. Instead of parleying, the Turks began to fire, and the battle commenced apparently without plan on either side. It soon became general. Admiral Codrington, in the Asia, opened a broadside upon the Egyptian admiral, and soon reduced his ship to a wreck; others in rapid succession shared the same fate. The conflict lasted with great fury for four hours. When the smoke cleared off, the enemy had disappeared, and the bay was strewn with the fragments of their ships. Among the Allies, the loss of the British was greatest, though not largeonly 75 men killed[263] and 197 wounded. The catastrophe produced immense excitement at Constantinople, and had the Janissaries (those fierce and bigoted defenders of Mohammedanism whom the Sultan had so recently extirpated) been still in existence, it would have fared ill with Christians in that part of the world. The Sultan demanded satisfaction, which would not be granted, and the European ambassadors left Constantinople. The battle of Navarino occurred at the time when the Duke of Wellington assumed the reins of office, our ambassador having then returned from Constantinople.
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