THREE:Napoleon now called up his auxiliary forces from Saxony, Würtemberg, Bavaria, and from all the Confederation of the Rhine, as well as new battalions from France, and advanced against the Russians. In the first place, the French, who had completed the subjugation of the Prussian states east of the Oder, pushed forward towards Poland, to attack the Russian general, Benningsen, who advanced to Warsaw, and occupied it in conjunction with the Prussians. Benningsen, however, finding the Prussians few and dispirited, fell back beyond the Vistula, and Murat, at the head of the French vanguard, entered Warsaw on the 28th of November. He was soon after joined there by Buonaparte, and Warsaw being put into a state of defence, the French army advanced to the Vistula and the Bug, in spite of the lateness of the season. Benningsen again retreated behind the Wkra, where he united his forces with those of Generals Buxhowden and Kaminskoi. Kaminskoi took the supreme command. When Napoleon arrived at the Wkra on the 23rd of December, he formed his army into three divisions, and forced the passages of the river. Kaminskoi fell back behind the Niemen, and the French pursued him, committing some injury on him. This trifling advantage Napoleon converted, in his bulletins to Paris, into the rout and general defeat of the Russians. It was true that the Russians were destitute of stores, having applied to Britain for money, and obtained only eighty thousand pounds. They fought, therefore, under great disadvantages, against an army furnished with everything. Notwithstanding, Benningsen, who was by far the most vigorous of their generalsfor Kaminskoi was fast falling into lunacyposted himself strongly behind Pultusk, his right led by Barclay de Tolly, and his left by Ostermann. Kaminskoi ordered Benningsen to retreat, but he refused, and stood his ground. At first Tolly was driven back by Lannes and Davoust, but Benningsen converted this disadvantage into a ruse, ordering Tolly to continue his retreat, till the French were drawn on, so that he could bring down his left wing on them. This he did with such effect that he killed and wounded nearly eight thousand of them, having, however, himself five thousand killed and wounded. Lannes and five other generals were amongst the wounded. The French seized the opportunity of darkness to retreat with such speed, that the next morning not a trace of them could be seen near Pultusk. Prince Galitzin fought another division of the French the same day at Golynim, and with the same success. Had Benningsen had the chief command, and brought down the whole united Russian army on Napoleon, the victory must have been most decisive; as it was, it taught the French that they had different troops to Prussians or Austrians to contend with. They drew off, and went into winter quarters at Warsaw and the towns to the eastward. The chief command of the Russian army was now conferred on Benningsen, and so far from Buonaparte having, as he boasted, brought the war to a close with the year, we shall find Benningsen, at the head of ninety thousand men, soon forcing him into a winter campaign.The distress which had pressed so severely on the people, and which had set them thinking about the most perilous political changes, was intimately connected with the state of the country. Throughout the troubled period of almost incessant war and lavish expenditure between 1797 and 1815, the business of the nation was carried on with an inconvertible paper currency, the precious metals having nearly all departed from the country. Bank notes were issued in such quantities, to meet the exigencies of the Government, that the prices of all commodities were nearly doubled. The Bill which was passed in 1819 providing for the resumption of cash payments had reduced the currency from 48,278,070, which was its amount in 1819, to 26,588,000, in 1822. The consequence was the reduction of prices in the meantime, at the rate of fifty per cent., in all the articles of production and commerce. With this tremendous fall of prices, the amount of liabilities remained unchanged; rents, taxes, and encumbrances were to be paid according to the letter of the contract, while the produce and commoditiesthe sale of which was relied upon to pay themdid not produce more than half the amount that they would have brought at the time of the contracts. The evil of this sudden change was aggravated by the South American Revolution, in consequence of which the annual supply of the precious metals was reduced to a third of its former amount. It was peculiarly unfortunate that this stoppage in the supply of gold and silver occurred at the very time that the Legislature had adopted the principle that paper currency should be regarded as strictly representing gold, and should be at any moment convertible into sovereigns. A paper currency should never be allowed[238] to exceed the available property which it represents, but it is not necessary that its equivalent in gold should be lying idle in the coffers of the Bank, ready to be paid out at any moment the public should be seized with a foolish panic. It is enough that the credit of the State should be pledged for the value of the notes, and that credit should not be strained beyond the resources at its command. The close of 1822 formed the turning-point in the industrial condition of the country. The extreme cheapness of provisions, after three years of comparative privation, enabled those engaged in manufacturing pursuits to purchase many commodities which they had hitherto not been able to afford. This caused a gradual revival of trade, which was greatly stimulated by the opening of new markets for our goods, especially in South America, to which our exports were nearly trebled in value between 1818 and 1823, when the independence of the South American Republics had been established. The confidence of the commercial world was reassured by the conviction that South America would prove an unfailing Dorado for the supply of the precious metals. The bankers, therefore, became more accommodating; the spirit of enterprise again took possession of the national mind, and there was a general expansion of industry by means of a freer use of capital, which gave employment and contentment to the people. This effect was materially promoted by the Small Note Bill which was passed in July, 1822, extending for ten years longer the period during which small notes were to be issued; its termination having been fixed by Peel's Bill for 1823. The average of bank-notes in circulation in 1822 was 17,862,890. In November of the following year it had increased by nearly two millions. The effect of this extension of the small note circulation upon prices was remarkable. Wheat rose from 38s. to 52s., and in 1824 it mounted up to 64s. In the meantime the bullion in the Bank of England increased so much that whereas in 1819 it had been only 3,595,360, in January, 1824, it amounted to 14,200,000. The effect of all these causes combined was the commencement of a reign of national prosperity, which burst upon the country like a brilliant morning sun, chasing away the chilling fogs of despondency, and dissipating the gloom in the popular mind.
