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ONE:Before entering Washington, General Ross sent in a flag of truce��or, rather, he carried one himself, for he accompanied it��to see that all was done that could be done to arrange terms, without further mischief or bloodshed. He demanded that all military stores should be delivered up, and that the other public property should be ransomed at a certain sum. But scarcely had they entered the place, with the flag of truce displayed, when��with total disregard of all such customs established by civilised nations in war��the party was fired upon, and the horse of General Ross killed under him. There was nothing for it but to order the troops forward. The city was taken possession of, under strict orders to respect private property, and to destroy only that of the State. Under these orders, the Capitol, the President's house, the Senate-house, the House of Representatives, the Treasury, the War-office, the arsenal, the dockyard, and the ropewalk were given to the flames; the bridge over the Potomac, and some other public works, were blown up; a frigate on the stocks and some smaller craft were burnt. All was done that could be done by General Ross, and the officers under him, to protect private property; but the soldiers were so incensed at the treachery by which the Americans had sought to blow up the seamen, by the firing on the flag of truce, and the unprincipled manner in which the Americans had carried on the war in Canada, as well as by the insults and gasconading of the Americans on all occasions, that they could not be restrained from committing some excesses. Yet it may be said that never was the capital of a nation so easily taken, and never did the capital of a nation which had given so much irritating provocation escape with so little scathe. The following evening it was evacuated in perfect order, and without any enemy appearing to molest the retreat. On the 30th the troops were safely re-embarked.It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.

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