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During these disgraceful days the Church-and-King party took no measures to prevent the destruction of the property of Dissenters. Noblemen, gentlemen, and magistrates rode in from the country on pretence of doing their duty, but they did little but sit and drink their wine, and enjoy the mischief. They could have called out the militia at once, and the mob would have been scattered like leaves before the wind; but they preferred to report the outbreak to the Secretary-at-War, and, after the time thus lost, three troops of the 15th Light Dragoons, lying at Nottingham, were ordered to march thither. But the arrival of the Light Dragoons showed what might have been done at first if the magistrates had been so minded. The mob did not stay even to look at the soldiers; at their very name they vanished, and Birmingham, on Monday morning, was as quiet as a tomb. Government itself took a most indifferent leisure in the matter. It did not issue a proclamation from the Secretary of State's office till the 29th, when it offered one hundred pounds for the discovery and apprehension of one of the chief ringleaders.

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Whilst these events had been passing in Austria and Bavaria, the King of England had endeavoured to make a powerful diversion in the Netherlands. Under the plea of this movement sixteen thousand British troops were embarked in April for the Netherlands; but they were first employed to overawe Prussia, which was in contention with Hanover regarding the Duchy of Mecklenburg. There were other causes of dispute between Prussia and the Elector of Hanover. George having now this strong British force, besides sixteen thousand Hanoverian troops and six thousand auxiliary Hessians, Frederick thought proper to come to terms with him, and, in consequence of mutual arrangements, the Hanoverian troops quitted Mecklenburg, and George, feeling Hanover safe, marched this united force to the Netherlands to join the British ones. He expected the Dutch to co-operate with him and the Austrians, and strike a decided blow at France. But the Earl of Stair, who was to command these forces, and who was at the same time ambassador to the States, found it impossible to induce the Dutch to act. They had increased their forces both by sea and land, but they were afraid of the vicinity of the French, and were, with their usual jealousy, by no means pleased to see the English assuming power in the Netherlands. Therefore, after making a great demonstration of an attempt on the French frontier with the united army, the project was suddenly abandoned, and the troops retired into winter quarters. But little was accomplished during this year by the British fleet.Of course, the commercial changes introduced by Mr. Huskisson and Mr. Robinson excited loud murmurs of dissatisfaction from the interests affected, especially the shipping interest. But the best answer to objectors was the continuously flourishing state of the country. At the opening of the Session in 1825, Lord Dudley and Ward, in moving the Address in answer to the King's Speech in the Upper House, observed:"Our present prosperity is a prosperity extending to all orders, all professions, and all districts, enhanced and invigorated by the flourishing state of all those arts which minister to human comfort, and those inventions by which man obtains a mastery over nature by the application of her own powers, and which, if one had ventured to foretell a few years ago, it would have appeared almost incredible." This happy state of things was the result of a legitimate expansion of trade. Manufacturers and merchants were at first guided by a spirit of sober calculation. The steady advance in the public securities, and in the value of property of all sorts, showed that the national wealth rested upon a solid basis. The extension of the currency kept pace with the development of trade and commerce, and the circulation of bankers' paper was enormously increased. But out of the national prosperity there arose a spirit of rash speculation and adventure, resulting in a monetary crisis. The issue of notes by country banks was under no restriction; no measures were taken to secure that their paper represented property, and could be redeemed if necessary. There were hundreds of bankers in the provinces who could issue any quantity of notes they pleased, and these passed as cash from hand to hand. The spirit of speculation and enterprise was stimulated to a feverish degree of excitement by the recognition of the states of Colombia, Mexico, and Buenos Ayres, formally announced in the King's Speech on the 3rd of February, which said that treaties of commerce had been made with those new states. The rich districts of South America being thus thrown open, there was a rush of capitalists and adventurers to work its inexhaustible mines. A number of companies was formed for the purpose, and the gains of some of them in a few months amounted to fifteen hundred per cent. The result was a mania of speculation, which seized upon all classes, pervaded all ranks, and threw the most sober and quiet members of society into a state of tumultuous excitement. Joint-stock companies almost innumerable were established, to accomplish all sorts of undertakings. There were thirty-three companies for making canals and docks, forty-eight for making railroads, forty-two for gas, twenty insurance companies, twenty-three banking companies, twelve navigation packet companies, five indigo and sugar companies, thirty-four metal companies, and many others. The amount of capital subscribed in these various companies, which numbered two hundred and seventy-six, was upwards of 174,000,000. In connection with South America there was the Anglo-Mexican Company, the Brazilian, the Colombian, Real de Monte, and the United Mexican. On the South American shares only ten pounds each had been paid, except the Real de Monte, on which 70 had been paid. We may judge of the extent to which gambling speculation was carried from the following statement of the market prices of the shares, in five of the principal mining companies[243], at two periods, December 10th, 1824, and January 11th, 1825:Walpole, however, continued to oppose the South Sea Bill in the Commons, declaring that the terms were too extravagant ever to be fulfilled; that the experiment could result in nothing but a fearful increase of the costs of stockjobbing, and final confusion and ruin. He insisted that, before the proposals of the Company were accepted,[47] the rise of their stock should be limited, and every means taken to prevent the fever of infatuation that would ensue from the promise of dividends out of funds which could never be realised. He proposed for this purpose the introduction of a clause fixing the number of years' purchase to be granted to the annuitants of the South Sea Company; but to this it was objected that it was the interest of the Company to take up the annuities; and, as the annuitants had the power of coming in or not, as they pleased, the Company would, of course, offer advantageous terms, and, therefore, the whole affair might be safely left to private adjustment. Aislabie added that the South Sea Company would not submit to be controlled in an undertaking they were to pay so dear for. The Bill passed both Houses.
ONE: Charles H. Coote, created Lord Castlecoote, with a regiment, patronage in Queen's County, and 7,500 in cash.The Parliament of England met on the 13th of October. Pitt, not without cause, assumed much merit from the successes of the year; and, in truth, so far as military matters went, rarely had this country reaped such fame. We had triumphed in every quarter of the world. In January came the news of the capture of Goree; in June, of Guadeloupe; in August, that of the victory of Minden; in September, of the victory off Lagos; in October, of the conquest of Quebec; in November, of Hawke's victory off Quiberon. Horace Walpole said, "victories came so thick, that every morning we were obliged to ask what victory there was, for fear of missing one." At the same time, the condition of our trade warranted the inscription afterwards placed on Chatham's monument in the Guildhall, that he caused commerce to flourish with war.
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At this moment the horse which George II. was riding, taking fright at the noise made by the French in their advance, became unmanageable, and plunged forward furiously, nearly carrying the king into the midst of the French lines. Being, however, stopped just in time, the king dismounted, and placing himself at the head of the British and Hanoverian infantry on the right, he flourished his sword and said, "Now, boys! now for the honour of England! Fire, and behave bravely, and the French will soon run!"[See larger version][See larger version]The unnatural state of things induced by the war had now brought about a great change in our currency. As we could manage to get in our goods to the Continent by one opening or another, but could not get the produce of the Continent in return, it would have appeared that we must be paid in cash, and that the balance of specie must be in our favour; but this was not the case. By our enormous payments to our troops in Spain, Portugal, and Sicily, as well as in the East and West Indies, and by our heavy subsidies, gold had flowed out of the country so steadily that there appeared very little left in it, and bank paper had taken its place. On the Continent, impoverished as they were, the people tenaciously clung to their gold, and Buonaparte alone could draw it from them in taxes. He always took a heavy military chest with him on his expeditions, and his officers also carried the money necessary for themselves in their belts, or otherwise about their immediate persons. The gold being enormously diminished in quantity in England, was carefully hoarded on all hands, thus again increasing the scarcity, and raising the value of it. The price of bullion had risen from twenty to thirty per cent., and here was a further strong temptation to hoard or send guineas to the melting-pot. This state of things led a certain class of political economists to call for a repeal of the Act for suspension of cash payments, and Francis Horner obtained a committee of inquiry into the causes of the decrease of gold and the increase of paper: and this committee came to the conclusion that the true cause of the evil lay in the excess of paper, and that the way to restrain it would be to allow the demand for gold at the Bank. But the truth was that the cause of the evil was not the excess of paper, but the enormous diminution of gold; and to have opened a legal demand for gold which could not be had would only have produced a panic, and a complete and horrible assassination of all credit and all business. But there were clearer-sighted men in Parliament, who declared that, though bullion had risen in price, bank-notes would still procure twenty shillings' worth of goods in the market, and that they were not, therefore, really depreciated in value. That was true, but guineas had, notwithstanding, risen to a value of five- or six-and-twenty shillings, and might be sold for that. Gold had risen, but paper had not fallen; and gold could not take the place of paper, because it did not, to any great extent, exist in the country; if it had, paper must have fallen ruinously. Mr. Vansittart and his party, therefore, moved resolutions that the resumption of cash payments being already provided for six months after the conclusion of peace, was an arrangement which answered all purposes, and ought not to be disturbed; that this would keep all real excess of paper in check, and leave gold to resume its circulation when, by the natural influence of peace, it flowed again into the country. These were, accordingly, carried.
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