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THREE:Melville was now permitted by the House of Peers to go down to the House of Commons, notwithstanding their conclusion on the subject, to make his defence, and he made a very long speech, contending that he had not embezzled a farthing of the public money, and exalting his services to the country, especially in his India administration. But on the head of Secret Service Money he was as close as the grave. He declared that "if he had disclosed any of these transactions he should have felt himself guilty not only of a breach of public duty, but of a most unwarrantable breach of private honour." There were twenty thousand pounds which he never did, and never could, account for on this ground, and there were forty thousand pounds drawn at once by Pitt from the Navy Fund. He said he knew very well for what purposes these sums had been paid, but that nothing would compel him to disclose it. When it was asked him whether Mr. Trotter had not kept large sums belonging to the Navy Fund in Coutts's Bank, and speculated with them to his own great enrichment, he admitted that Trotter had had such sums for considerable times in Coutts's Bank, but that they were always forthcoming when wanted, and that no single payment had been delayed on that account; and that out of the one hundred and thirty-four millions which had passed through his hands, nothing had been lost. He praised Trotter in the highest manner, but was silent as to the private use that he had so long, and to such advantage to himself, made of the public money. He admitted that he had himself held considerable sums of this money at different times in his own hands, but had repaid the whole before quitting[503] office, and this was all that the Act of 1785 required. He seemed to admit that he had paid money out of the Navy Fund for other than naval objects, and for these secret service purposes. Some of these were in Scotland, of which, also, he had the administration to a certain degree. And here the public called to mind that Watt, the spy and informer against the Scottish Reformers, had acknowledged to have been employed and paid by Dundas, so that it was clear whither some of the Navy Fund had gone. Melville entered into long explanations regarding a written release which had passed reciprocally between him and Trotter on winding up their affairs, in which they agreed to destroy all their vouchers for the sums paid away. This looked very black, but Melville contended that it was only a matter of course��a thing constantly done by officials in like circumstances, which, if true, made the matter all the worse for the country. But Melville contended that this clause in the release was merely a form; that it did not mean that they should literally destroy the vouchers, but only that they should be rendered invalid as evidence in any prosecution, which very little mended the matter. Melville declared that he had not, in consequence of the clause, destroyed a single paper.

FORE:The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight. FORE:Mr. Baring, who represented the Duke in the House of Commons, seemed to regard this declaration from the high-minded member for Oxford University as fatal to the Tory scheme for recovering power. They came at length to understand that the new Premier would be equally unacceptable to the country, whether he appeared with a Reform Bill or a gagging Bill. Both Baring and Sutton, the late Speaker, sent in their resignations. The Duke at length confessed that he had failed in his attempt to form an Administration; and the king had no other resource but to submit to the humiliation of again putting himself in the hands of his late Ministers. He had before him only the terrible alternative of a creation of peers or civil war. Earl Grey was determined not to resume office, "except with a sufficient security that he would possess the power of passing the present Bill unimpaired in its principles and its essential provisions." The consequence was, that on the 17th of May the following circular was sent to the hostile Lords by Sir Henry Taylor:��"My dear lord, I am honoured with his Majesty's commands to acquaint your lordship that all difficulties to the arrangements in progress will be obviated by a declaration in the House of Peers to-night from a sufficient number of peers, that in consequence of the present state of affairs they have come to the resolution of dropping their further opposition to the Reform Bill, so that it may pass without delay as nearly as possible in its present shape." Wellington, as usual, obeyed and withdrew from the House, but his seceding comrades prefaced their departure by defiant speeches in which they reserved to themselves the right of resuming their position. Then the Cabinet insisted on obtaining the royal[352] consent to an unlimited creation; and it was given on condition that they, in the first instance, called to the House of Lords the eldest sons of peers or the collateral heirs of childless noblemen. But Sir Henry Taylor's circular had done its work, and the extreme step was unnecessary.[See larger version]