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By permission of the Corporation of Liverpool. Reproduced by Andre & Sleigh, La., Bushey. Herts.

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The spring of 1720 was a period of remarkable national prosperity. But "the grand money schemes projected of late," which appeared to the Jacobite Atterbury and others calculated to cement the royal peace and strengthen the foundation[46] of the Government and nation, were destined to produce a very different effect. For the South Sea Bubble was about to burst. In 1711, Harley, being at his wits' end to maintain the public credit, established a fund to provide for the National Debt, which amounted to ten millions of pounds. To defray the interest he made permanent the duties on wine, vinegar, and tobacco, etc. To induce the purchase of the Government stock, he gave to the shareholders the exclusive privilege of trading to the Spanish settlements in South America, and procured them an Act of Parliament and a royal charter, under the name of the South Sea Company. The idea, hollow and groundless as it was, seized on the imagination of the most staid and experienced traders. All the dreams of boundless gold which haunted the heads of the followers of Drake and Raleigh were revived. The mania spread through the nation, and was industriously encouraged by the partisans of Harley. But this stupendous dream of wealth was based on the promises of Ministers, who at the Peace of Utrecht were to secure from the Government of Spain this right to trade to its colonies. The right was never granted by that haughty and jealous Power, further than for the settlement of some few factories, and the sending of one small ship annually of less than five hundred tons. This, and the Assiento, or privilege of supplying those colonies with African slaves, were the sole advantages obtained, and these were soon disturbed by the war with Spain, which broke out under Alberoni. The South Sea Company, however, from its general resources, remained a flourishing corporation, and was deemed the rival of the Bank of England.
ONE:
The magnitude of the interests at stake, the difficulty of estimating the real character and extent of the threatened evil, and the alarming consequences that must ensue if the worst fears should be realised, rendered immediate action necessary. A Cabinet Council was held on the 31st of October. From what passed on that occasion, says Sir Robert Peel, in the account which he has left of these events, "it was easy to foresee that there was little prospect of a common accord as to the measures to be adopted." On the 5th of November he apprised her Majesty of the probability of serious differences of opinion. At the adjourned meeting of the Cabinet, on the 6th of November, he submitted certain proposals for the consideration of his colleagues, which he has recorded in the following outline of these events:There was an energetic debate in each House as the Bill passed through. It was opposed in the Peers by Lords Lansdowne, Holland, and Erskine, but was carried by ninety-three against twenty-seven. Ten peers entered a strong protest on the journals against the measure, denying the traitorous conspiracy or the extensive disaffection to the Government alleged, affirming that the execution of the ordinary laws would have been amply sufficient, and that Ministers were not entitled to indemnity for causeless arrests and long imprisonments which had taken place, for the Bill went to protect them in decidedly illegal acts. In the House of Commons the Bill was strongly opposed by Brougham, Tierney, Mr. Lambtonafterwards Lord Durhamand Sir Samuel Romilly. They condemned the conduct of Ministers in severe language, while the Bill was supported by Canning, by Mr. Lambafterwards Lord Melbourne, who generally went with the other sideby Sir William Garrow, and Sir Samuel Shepherd, Attorney-General.Whilst all the countries which Buonaparte, at such an incalculable cost of life and human suffering, had compelled to the dominion of France were thus re-asserting their freedom, Buonaparte, in Paris, presented the miserable phantom of a vanished greatness. He called on the Senate to vote new conscriptions, telling them that theirs had been made by him the first throne of the universe, and they must maintain it as such; that without him they would become nothing. But the Allies were now entering France at one end, and Wellington was firmly fixed in the other; ere long the insulted nations would be at the gates of Paris, and the Senate and people demanded peace. Buonaparte refused to listen, and the Senate voted the conscription of three hundred thousand men, knowing that there was no longer any authority in the country to raise them. La Vende, and all the Catholic South, were on the verge of insurrection; Murat, in Naples, was ready to throw off his last link of adhesion to Buonaparte; and the defeated usurper stood paralysed at the approach of his doom.The new arrangements for the care of the king's person came on first for discussion. On the 25th of January Lord Liverpool introduced a Bill to make the Duke of York guardian of his Majesty's person in place of the late queen. This question was decided with little debate. On the 4th of February a message was brought down from the Regent informing the House of Commons that, in consequence of the demise of her Majesty, fifty-eight thousand pounds became disposable for the general purposes of the Civil List; and recommending that the claims of her late Majesty's servants to the liberality of the House should be considered. Lord Castlereagh moved that the House should go into committee on this subject, as, besides the fifty-eight thousand pounds, there was another sum of one hundred thousand pounds, which had been appropriated to the maintenance of the establishment at Windsor. It was understood that Ministers would propose to reduce the sum for the establishment at Windsor to fifty thousand pounds, but that they would recommend that ten thousand pounds, which her Majesty had received in consideration of her charge of the king, should be transferred to the Duke of York. Mr. Tierney objected to the charge of fifty thousand pounds for the maintenance of the establishment at Windsor. He said he could not conceive how this money was to be spent, or on whom, for certainly it could not be on the king, who, he understood, was in that state of mental and bodily debility which made it necessary that as few persons as possible should be about him, and that his regimen was so very simple that it could cost next to nothing.Dr. Curtis, the Roman Catholic Primate, was an old friend of the Duke of Wellington, whom he had known during the war in the Peninsula, and with whom he had kept up a confidential correspondence on the subject of the Catholic claims, on the state of the country, on the disposition of the Roman Catholics in the army,[290] and other matters of the kind. On the 11th of December the Duke, in answer to a letter urging the prompt settlement of the Catholic question, wrote to Dr. Curtis as follows: "I have received your letter of the 4th instant, and I assure you that you do me justice in believing that I am sincerely anxious to witness the settlement of the Roman Catholic question, which, by benefiting the State, would confer a benefit on every individual belonging to it. But I confess that I see no prospect of such a settlement. Party has been mixed up with the consideration of the question to such a degree, and such violence pervades every discussion of it, that it is impossible to expect to prevail upon men to consider it dispassionately. If we could bury it in oblivion for a short time, and employ that time diligently in the consideration of its difficulties on all sides (for they are very great), I should not despair of seeing a satisfactory remedy."
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