TWO:Before Walpole thus threw off the mask of moderationindeed, on the very day of his resignationhe introduced a well-matured scheme for the reduction of the National Debt, which was, in fact, the earliest germ of the National Sinking Fund. Though the ordinary rate of interest had been reduced, by the statute of the 12th of Queen Anne, to five per cent., the interest on the funded debt remained upwards of seven. The Long and Short Annuities were unredeemable, and could not be touched without the consent of the proprietors; but Walpole proposed to borrow six hundred thousand pounds at only four per cent., and to apply all savings to the discharge of the debts contracted before December, 1716. He proposed, also, to make some arrangement with the Bank and the South Sea Company, by which the Bank should lend two millions and a half, and the Company two millions, at five per cent., to pay off such holders of redeemable debts as should refuse to accept an equal reduction.
TWO:
TWO:A new and surprising phenomenon was discovered in the attacks upon Ministers for these concessions: Fox and North were in coalition! Fox, who so lately had declared North and his colleagues men "void of every principle of honour and honesty," and who would consent, should he ever make terms with them, to be called "the most infamous of mankind," now as warmly declared that he had ever found Lord Norththis man void of honour and honestya man always "open and sincere as a friend, honourable and manly as an enemy, above practising subterfuges, tricks, and stratagems." Lord North, on his side, repaid the compliments of Fox, growing enthusiastic on the genius, eloquence, and generous nature of that statesman. "While I admire the vast extent of his understanding," exclaimed North, "I can rely on the goodness of his heart." The coalition was looked upon with disfavour, but it was justified to a considerable extent during the debate on the peace. Lord John Cavendish truly represented that France and Spain were on the verge of ruin; that Holland was in an exhausted and helpless condition; and that as for America, it was in the very gulf of destitution, the people refusing to pay the taxes ordered by[300] Congress for the continuance of the war. And it was to such defeated and demolished enemies that Ministers had conceded almost everything they had asked. Lord North turned more particularly to the concession made to the French in the East Indies. It was in that quarter, he said, that he looked for a consolidated and expanding empire, calculated to recompense us, and more than recompense us, for the loss of America. From that splendid continent we had completely driven the French, and the soundest policy dictated their continued firm exclusion from it. Yet here had Ministers most fatally readmitted them, to renew their old plots and alliances against us, by which they would to a certainty continue to harass, thwart, and weaken us, till we once more went through the ruinous and sanguinary process of expulsion. He was equally severe on the surrender of Minorca and the Floridas to Spain, and the admission of the unconceding, unconciliating Americans to our own proper fishing grounds. Fox called on Ministers to produce the treaty which he had sketched a few months before, and to see what very different terms he had demanded, and would have exacted. That the sense of the House went with these sentiments was shown by both the amendments of the Coalition being carried by a majority of sixteen. Lord John Cavendish moved another resolution strongly condemning the terms of the treaty, but consented that the peace now made should remain inviolate. This was also carried, by a majority of seventeen, being two hundred and seven votes against one hundred and ninety.But the matters most important, and in which the Rockingham Ministry succeeded the best, were those of attempting to accomplish the peace with America, and with the Continental nations, on which they had so long and so loudly insisted. Fox first tried his diplomatic genius with the Dutch, whom he could, as he boasted, soon conciliate; but, to his infinite chagrin, that calculating people were so elated by the recent ill success of the English, and relied so completely on the powerful fleets of France and Spain to protect their trade and islands, that they returned a contemptuous answer, declaring that they could not treat without their allies. Still more mortifying was his repulse by the Americans. His offers of negotiations for peace were received with a haughty indifference by Congress, and he was[292] again referred to France. Fox now had recourse to the mediations of Russia and Prussia. But Frederick the Great declined to intervene, and the Czarina Catherine coupled her offers of alliance with conditions which the king and the majority of the Cabinet refused to accept, though Fox thought they were reasonable.
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