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TWO:Meanwhile, the American emissaries were both busy and successful at the Court of France. Though the Government still professed most amicable relations towards Great Britain, it winked at the constant sale of the prizes taken by American privateers, or those who passed for such, in their ports. The Government had, as we have seen, supplied the insurgents with money and arms. It was now arranged between Silas Deane and the French Minister, Vergennes, that the supplies of arms and ammunition should be sent by way of the West Indies, and that Congress should remit payment in tobacco and other produce. The French Government supplied the American agents with money for their purchases of arms and necessary articles for the troops, also to be repaid in tobacco. Two of the ships sent off with such supplies were captured by the British men-of-war; but a third, loaded with arms, arrived safely. To procure the money which they could not draw from Europe, Congress made fresh issues of paper money, though what was already out was fearfully depreciated. They voted a loan also of five millions of dollars, at four per cent. interest. They authorised a lottery to raise a like sum, the prizes to be payable in loan-office certificates. These measures only precipitated the depreciation of the Government paper; people refused to take it; and Washington, to prevent the absolute starvation of the army, was endowed with the extraordinary power of compelling the acceptance of it, and of arresting and imprisoning all maligners of the credit of Congress. Congress went further, and passed a resolution that their bills ought to pass[237] current in all payments, trade, and dealings, and be deemed equal in value to the same sum in Spanish dollars; and that all persons refusing to take them should be considered enemies to the United States; and the local authorities were called upon to inflict forfeitures and other penalties on all such persons. Still further: the New York convention having laid before Congress their scheme for regulating the price of labour, produce, manufactured articles, and imported goods, it was adopted. But these arbitrary and unscientific measures the traders set at defiance, and the attempts to enforce them only aggravated the public distress. Loans came in slowly, the treasury ran low, the loan offices were overdrawn, and the issue of bills of credit was reluctantly recommenced; ten additional millions were speedily authorised, and as the issue increased, the depreciation naturally kept pace with it. The Commissioners in France were instructed to borrow money there, but the instructions were more easily given than executed.In July of the present year the union of Ireland with Great Britain was carried. Pitt and Lord Cornwallis had come to the conclusion that a double Government was no longer possible, and that unless the Irish were to be allowed to exterminate one another, as they had attempted to do during the late rebellion, the intervention of the British Parliament was absolutely necessary. A resolution had passed the British Parliament in 1799, recommending this union, and the news of this created a tempest of indignation in Protestant Ireland. In January, 1799, the speech on the Address to the throne in the Irish Parliament was, on this account, vehemently opposed, and an amendment was carried against the Government by a majority of one; yet in January, 1800, a motion was carried, at the instigation of Lord Castlereagh, the Secretary, in favour of the union, by a majority of forty-two. Whence this magical change in twelve months? On the 5th of February the whole plan of the union was detailed by Lord Castlereagh, the principal Secretary of State for Ireland, in the Irish Commons. He stated that it was intended to give to Ireland in the Parliament of the United Kingdom four lords spiritual sitting in rotation of sessions, and twenty-eight lords temporal elected for life by peers of Ireland, and that the Irish representatives in the united House of Commons should be a hundred. The motion for this plan was carried in the Irish Commons by a majority of forty-two in spite of a magnificent speech from Grattan, and by a great majority in the House of Lords; but this was in the face of the most unmitigated amazement on the part of the opposition, and of the people, who were not in the secret. Their rage was beyond description. On the 13th of March Sir John Parnell declared that this measure had been effected by the most unexampled corruption, and moved for an Address to his Majesty, imploring him to dissolve this Parliament, and present the question to be decided by a new one. But the Solicitor-General declared that this motion was "unfurling the bloody flag of rebellion;" and Mr. Egan replied that the Solicitor-General and other members of the[475] administration had already "unfurled the flag of prostitution and corruption." But the measure was now passed, and that by the same Parliament which, only a year before, had rejected the proposition in toto. But what were the means employed by the British Government to produce this change? The answer is simple; a million and a quarter was devoted to the compensation of borough owners, lawyers who hoped to improve their prospects by entering the House, and the Dublin tradesmen.

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THREE:[253]The select committee of the Commons appointed at the instance of Lord Castlereagh, to inquire into the state of the national income and expenditure, now presented its report on the 3rd of June, and it was agreed to. The Chancellor of the Exchequer stated on its authority that, since 1815, taxation had been reduced eighteen million pounds per annum; that in 1816 the revenue of Great Britain and Ireland had been consolidated, and that, at that time, the interest of the Debt of Ireland, including the Sinking Fund provided for its reduction, exceeded the entire revenue of that part of the United Kingdom by one million nine hundred thousand pounds. He then announced that supplies for the present year would be required to the amount of twenty million five hundred thousand pounds; that the existing revenue would only furnish seven million pounds towards this; and that it would be necessary to have recourse to the Sinking Fund to make up the deficiency of thirteen million five hundred thousand pounds. This Sinking Fund was fifteen million five hundred thousand pounds, so that it would leave only two million pounds; but as it was necessary to have a tolerable surplus in hand to meet exigencies, it was proposed to raise this reserve fund to five million pounds by fresh taxes to the amount of three million pounds.

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