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On the 6th of May, 1836, the Chancellor of the Exchequer brought forward the Budget, which placed in a strong light the long standing anomaly of distress among the agricultural classes, contrasting with general prosperity in the commercial classes. He was enabled to exhibit a more favourable state of the finances than he had anticipated in his estimate the previous year. The total income of the nation was 46,980,000, its total expenditure 45,205,807, which would give a surplus of 1,774,193. Of this surplus all but 662,000 would be absorbed by the interest on the West Indian Loan, which had now become a permanent charge. There was an addition of 5,000 seamen to the navy, for which the sum of 434,000 was required. This addition seemed to be quite necessary from the feeble condition of the navy as compared with the navies of other nations. On the 4th of March Mr. Charles Wood had stated that the French would have twelve sail of the line at sea during summer; that in 1834 the Russians had five sail of the line cruising in the Black Sea, and eighteen besides frigates in the Baltic. During this period there never were in the English Channel ports more than two frigates and a sloop, with crews perhaps amounting to 1,000 men, disposable for sea at any one time, and that only for a day or two. Moreover all the line-of-battle ships Great Britain had afloat in every part of the world did not exceed ten. The land forces voted for the year were 81,319 men, not counting the Indian army. Of these one-half were required in the colonies. France had 360,000 regular soldiers, and three times that number of National Guards. With the surplus at his disposal the Chancellor of the Exchequer proposed to reduce the duty on first-class paper from fivepence to threepence-halfpennya suitable accompaniment to the reduction of the stamp on newspapers, already noticedand to abolish the duty on stained paper; to remit the South Sea duties, amounting to 10,000; to reduce the duties on insurances of farming-stock, on taxed carts, and on newspapers. He estimated the total amount of repeals for the present year at 351,000, which would be increased to 520,000 when they all came into operation. This was the best of Mr. Spring-Rice's indifferent Budgets.

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ONE:France ceded Canada, Nova Scotia, and Cape Breton, stipulating for the free exercise of their religion by the inhabitants of Canada, and for their leaving the country if they preferred it, carrying away their effects, if done within eighteen months. Nova Scotia and Cape Breton were given up unconditionally. The boundaries of Louisiana were more clearly defined. The French retained the right to fish on part of the coast of Newfoundland and in the Gulf of St. Lawrence and to retain the two little islets of St. Pierre and Miquelon, as places of shelter for their fishermen, on condition that no batteries should be raised on them, nor more than fifty soldiers keep guard there. Their fishermen were not to approach within fifteen miles of Cape Breton.
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[See larger version]This being done, Mr. Vyner suggested that the physicians should rather be examined by the House itself, a proposal supported by Fox. Pitt[344] replied that this was a matter requiring much delicacy, and that the opinions of the physicians before the Council being on oath, he imagined that they had greater force than any given before Parliament, where they would not be on oath. But, during the four days' adjournment, he had ascertained, to his satisfaction, that the majority of the physicians were of opinion that the king would pretty soon recover, and that especially Dr. Willis was of this opinion, under whose more immediate care he was; and no sooner did the Commons meet, than Pitt most judiciously acquiesced in the suggestions of Vyner and Fox; and the physicians were examined by a committee of twenty-one members, of which he himself was chairman. On the 16th of December Pitt brought up the report of the committee, in which a majority of the physicians had expressed the opinion that the malady of the king would not be of long duration; and he then moved for another committee to search for precedents as to the power to be exercised by a regent. Fox declared that Pitt knew very well that there were no precedents to be found while there existed an Heir Apparent, at the time, of full age and capacity; that he was seeking only the means of delaying what ought to be done at once; that the failure of the mind of the sovereign was a case of natural demise, and that the Heir Apparent succeeded to the exercise of the royal authority from the period of that failure, as a matter of course; that the Parliament had, indeed, the authority to decide that such failure had actually taken place, and to sanction the assumption of the powers of regency, as the other two Estates of the realm, but nothing more. When Fox made this astounding assertion, Pitt slapped his thigh and exclaimed to a colleague sitting near him, "I'll unwhig the gentleman for the rest of his life."Colonel Campbell did not lose a single man, and had but three wounded, so that it is evident that the flight of the enemy must have been instantaneous and universal. Murat made no further attempt to seize Sicily, though he kept his camp on the heights behind Reggio and Scylla for two years longer.On the morning of the next day, Sunday, the 12th of July, the news was all over Paris that Necker was dismissed. The alarm was intense. Paris was in an uproar. The Palais Royal was choked with people in a frenzy of excitement. All at once a young man leaped upon a table and shouted, "To arms! to arms! Whilst we are talking, foreign troops are gathering round us to massacre us!" This orator, whose loud voice and dramatic action stopped in a moment the buzz of tongues and the voices of lesser orators, mounted on chairs and tables, was Benoit Camille Desmoulins, already a favourite orator of the people on this spot. This fanatic revolutionist now held up a brace of pistols; and, snatching a green twig from a tree, stuck it into his hat as a cockade. There was an instantaneous imitation of the act by the whole mass of people. The trees were all stripped, and a woman brought out a great roll of green ribbon, and cut off cockades for the patriots as far as it would go. The mob, armed with pistols, clubs, swords, and axes, continued their procession along the Rue Richelieu; then turning on the Boulevard, along the Rues St. Martin, St. Denis, St. Honor, to the Place Vend?me. There a German squadron was drawn up before the hotel of the farmers of the taxes, and attacked the crowd, destroyed the busts, and killed a soldier of the French Guard who stood his ground. The commandant, Besenval, remained inactive in the cole Militaire; he was without orders from Broglie; and, besides, dared not trust the French Guard, but kept them close in their barracks. But he had three foreign regiments at his disposal, one of Swiss and two of German cavalry. Towards afternoon, seeing the disorder increase, he sent the Swiss into the Champs Elyses with four pieces of cannon, and the German cavalry into the Place Louis Quinze, adjoining. As Prince Lambesc, with the Germans, was marching along the Chausse d'Antin, he was met by a body of the French Guard, who had escaped from their barracks to avenge their slain comrade. They fired on him and killed three of the German cavalry, and wounded numbers more. They then advanced with fixed bayonets to the Place Louis Quinze, where the Swiss Guard were posted. There they and the Swiss remained facing each other under arms all night, the people feasting and encouraging the French Guard; who, however, did not come to blows with the Swiss. Lambesc had continued his route to St. Cloud, leaving the city all night in the hands of the mob, who burnt the barriers at the different entrances, so as to allow free access to the people from the country; and broke open the gunsmiths' shops, and carried off the arms. During the whole of the next day the city was in the hands of the mob.
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