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ONE:It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to do��causes that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discovery��a box containing ��700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from ��17,477,290 to ��25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds. THREE:The king's speech at the opening of Parliament, and the martial tone of the speeches by the members of both Houses, exceedingly exasperated Napoleon; for though preparing for war he was scarcely ready, and meant to have carried on the farce of peace a little longer. Talleyrand demanded of Lord Whitworth the reason of this ebullition of the British Parliament and of the Press. Lord Whitworth replied, as he had done regarding the comments on the trial of Peltier, that it was the direct result of the insulting articles in the Moniteur, which was known to be the organ of the French Government; whereas, in Britain, the Government had no direct control, either over the speeches in Parliament or over the press. Talleyrand and Whitworth again discussed all the vexed questions of the retention of Malta, the conduct of Colonel Sebastiani in the East, the aggressions of Napoleon in Italy, Germany, and Switzerland, in violation of the Treaty of Amiens; and Lord Whitworth declared that all Britain wanted was, that the Treaty should be faithfully carried out on both sides; that we were ready to evacuate Malta, and recall our complaints, on that being done. But this was what Napoleon was resolved never to do, and he therefore resorted to the most extraordinary insults to the British Ambassador. He requested Lord Whitworth to call at the Tuileries at nine o'clock in the evening of the day on which he had had his conference with Talleyrand. Napoleon had, by an assumption of extreme hauteur and impetuosity, frightened the Austrian Ambassador at Campo Formio, and he probably thought of frightening the British one; but Britain had not been beaten like Austria, and such a proceeding could only enrage the British people. In this interview, Buonaparte ran over, in a rapid and excited harangue of two hours' length, scarcely permitting Lord Whitworth to interpose a word of reply, all the alleged causes of dissatisfaction with England; at one moment threatening to invade it, if it cost him his life; at another, proposing that France and England should unite to rule the Continent, and offering to share with it all the benefits of such an alliance. Lord Whitworth replied, as before, that the British Government desired nothing but the bona fide execution of the Treaty of Amiens, and could not for a[488] moment entertain such schemes of aggression and domination as the First Consul proposed to her. He began to comment gravely on the aggressions in Switzerland and Italy, but Buonaparte cut him short angrily, saying those things were no business of his and that he had no right to talk of them. There was a fresh interview with Talleyrand, and fresh notes from him and Andreossi of the same character. A similar though more violent scene occurred at a levee on the 13th of March, in which Napoleon passionately accused Britain of driving France into war. A shrewd observer, Madame de R��musat, was of opinion that his rage was simulated.
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