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A great portion of the present Session was[143] occupied with discussing the return to cash payments, which, by the Act of Parliament, ought to take place on the 5th of July of this year. It appears that no less than fifty debates and conversations in both Houses took place on this important subject during the Session. Very soon after the meeting of Parliament a secret committee of each House was appointed to inquire into the state of the Bank. These committees were, however, so managed, by delivering to the members lists of suitable persons for such committees, that scarcely any but Ministerial men were voted, though these votes were given by ballot. In the Commons this result was so evident that the Opposition declined to vote at all. The first reports of the committees went rather to close more strictly than to open the issue of gold by the Bank. It had been paying in gold its notes issued previous to January, 1817. This payment it was proposed to stop, as, at present, evidently injurious to the interests of the country. Mr. Peel, on moving for a Bill for this purpose, stated that the gold at the present price was fast finding its way abroad, and was as rapidly absorbed in re-minting a gold coinage for France. It appeared that during the first half of 1818 gold to the value of no less than one hundred and twenty-eight million francs had been coined at the French mint, of which three-fourths were derived from the gold coinage of England. A Bill was accordingly passed to stop payment altogether in gold till the necessary preparations were made by a fresh Bill. Still, the condition of the Bank was represented as flourishing. Its liabilities were stated in January, 1819, as amounting to thirty-three million eight hundred and ninety-four thousand five hundred and eighty pounds; its assets, including the debt due from Government, fifty-three million seven hundred and eighty-three thousand seven hundred pounds. The total Bank surplus appeared to be nineteen million eight hundred and eighty-nine thousand one hundred and twenty pounds; and its surplus, independent of the Government debt, and therefore available for current use, was five million two hundred and two thousand three hundred and twenty pounds. The committees adopted the scheme broached by Mr. Ricardo in his "Proposals for an Economical and Secure Currency," published in 1816. This was that the Bank, in the first instance, should not pay for its notes in gold coin, but in ingots of a certain weight, its fineness being attested by a stamp; and this degree of purity should be regulated from time to time till the gold descended to the Mint price of three pounds seventeen shillings and tenpence-halfpenny per ounce. When the Mint gold at length reached this rate of value, then the payment in coin was to be begun. Resolutions to this effect were moved by the Earl of Harrowby on the 21st of May, and they received the approval, not only of the Ministerial side, but of the leading Opposition members, Lords Grenville, Lansdowne, and King.WARREN HASTINGS.
ONE:THE PORTEOUS MOB. (See p. 67.) [After the Painting by James Drummond, R.S.A.]By the terms of the Treaty of Tilsit, Prussian Poland was taken away, but not to be incorporated with a restored Poland, as Buonaparte had delusively allowed the Poles to hope. No; a restored Poland was incompatible with a treaty of peace with Russia, or the continuance of it with Austria. It was handed over to the Duke of Saxony, now elevated to the title of the King of Saxony and Duke of the Grand Duchy of Warsawthe name which Prussian Poland assumed. The duped Polish patriots cursed Buonaparte bitterly in secret. Alexander, with all his assumed sympathy for his fallen cousins of Prussia, came in for a slice of the spoil, nominally to cover the expenses of the war. Dantzic, with a certain surrounding district, was recognised as a free city, under the protection of Prussia and Saxony; but Buonaparte took care to stipulate for the retention of a garrison there till the conclusion of a general peace, so as to stop out any British armament or influence. To oblige the Emperor of Russia, he allowed the Dukes of Saxe-Coburg, Oldenburg, Mecklenburg-Schwerin, who were the Czar's relations, to retain possession of their territories; but he returned to Prussia only about one-half of the provinces which he had seized, reducing her very much to the limits in which Frederick the Great had found her before his usurpations. She surrendered her provinces between the Rhine and the Elbe, which, together with Hesse, Brunswick, and part of Hanover, were formed into the kingdom of Westphalia and given to Jerome Buonaparte. She was saddled by a crushing war indemnity, and had to leave Berlin and the chief fortresses in the hands of the French until the debt was paid. In the articles of the Treaty which were made public, Alexander paid a nominal courtesy to his ally, Great Britain, by offering to mediate between her and France, if the offer were accepted within a month; but amongst the secret articles of the Treaty was one binding the Czar to shut his ports against all British vessels, if this offer were rejected. This was a sacrifice demanded of Alexander, as Great Britain was Russia's best customer, taking nearly all her raw or exported produce. In return for this, and for Alexander's connivance at, or assistance in, Buonaparte's intention of seizing on Spain and Portugal, for the taking of Malta and Gibraltar, and the expulsion of the British from the Mediterranean, Alexander was to invade and[546] annex Finland, the territory of Sweden, and, giving up his designs on Moldavia and Wallachia, for which he was now waging an unprovoked war, he was to be allowed to conquer the rest of Turkey, the ally of Napoleon, and establish himself in the long-coveted Constantinople. Thus these two august robbers shared kingdoms at their own sweet will and pleasure. Turkey and Finland they regarded as properly Russian provinces, and Spain, Portugal, Malta, Gibraltar, and, eventually, Britain, as provinces of France.

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TWO:Sir George Prevost now put himself at the head of the brave troops that had so lately advanced from conquest to conquest under Wellington. He had eleven thousand of these brave fellows, including a fine regiment of cavalry, and a numerous train of artillery. With such an army, an able general would not only have cleared the whole frontier of Canada, but would have inflicted a severe chastisement on the Americans in their own territory. The great object to be accomplished was the destruction of Sacketts Harbour, with which must fall at once the whole naval power of America on Lake Ontario. Every military man expected that this would be done; but Sir George, after waiting in a camp at Chamblay, advanced to Plattsburg Harbour, on Lake Champlain. But there he would do nothing till the American flotilla, which lay in the harbour, was also attacked. For this purpose Captain Downie was sent by Sir James Yeo from the Ontario squadron suddenly to take command of a squadron of a few ships and a miscellaneous naval force, as hastily mustered and knowing little of each otherDownie knowing only one of his officers. The ship which he commanded was just launched, was unfinished, and everything was in confusion: yet in this condition, Sir George Prevost insisted on their going into action against a superior and well-prepared American squadron, promising to make a simultaneous attack on the harbour and defences on land. Downie commenced the attack on the water, but found no co-operation from Sir George on shore, who stood still till he had seen Downie killed, and the unequal British vessels, three in number, fairly battered to pieces, and compelled to strike. And, after all, Sir George never did commence the attack on the fort with that fine army, which would have carried it in ten minutes, but marched back again, amid the inconceivable indignation of officers and men, who could not comprehend why they should be condemned to obey the orders of so disgraceful a poltroon. On their march, or rather retreat, they were insulted by the wondering Americans, and abandoned vast quantities of stores, ammunition, and provisions. The loss of men during this scandalous expedition was not more than two hundred; but eight hundred veteranswho had been accustomed to very different scenes, under a very different commanderin their resentment at his indignity went over to the enemy. In fact, had this unhappy general continued longer in command, the whole British force would have become thoroughly demoralised.

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TWO:But during these transactions France and England had not been idle. A new alliance had been signed at Hanover between England, France, and Prussia, to which soon after were added Denmark and Holland. The real objects of this treaty were to counterbalance that between Spain, Austria, and Russia, to compel the dissolution of the Ostend Company, and to prevent the menaced assistance to the Pretender. This was the celebrated Treaty of Hanover.[See larger version]
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THREE:When day dawned, Cornwallis saw that the ground he occupied was so favourable that it rendered his inferiority of numbers of little consequence. He therefore drew out his forces for immediate action. Swamps to the right and left narrowed the ground by which the Americans could approach him, and forming his troops into two lines, commanded by Lord Rawdon and General Webster, he attacked the Americans under Gates and quickly put them to the rout. The Virginian militia ran most nimbly, and sought refuge in the woods. Gates himself galloped away believing all was lost, and never halted till he reached Charlotte, about eighty miles off. The only men who fought well were two brigades of regulars under the command of the German, Von Kalb, who kept his ground against the troops of Lord Rawdon for three-quarters of an hour, sustaining repeated charges of the bayonet unmoved; but Von Kalb fell mortally wounded, and the last of the Americans then gave way and fled for their lives in all directions.

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[See larger version]After thus settling the form and powers of the constitution, Congress voted eight million dollars to be raised as a loan, and ordered a fresh issue of paper money. But, above all, it laboured to acquire aid from abroad, without which it was clear they must yield to the superior military force of the mother country, and return to their obedience on humiliating terms. For this purpose, in addition to Silas Deane, who was already in Paris, Franklin and Arthur Lee were dispatched to that capital to obtain aid with all possible speed. These gentlemen set sail in the beginning of November, though in much apprehension of being intercepted by the British cruisers; but managed to reach Quibron Bay in safety, and Paris before the end of the year. So successful was Franklin in Paris, that he obtained a gift of two millions of livres from the French king in aid of America, and the assurance that[233] this should be annually augmented, as her finances allowed. The only stipulation for the present was profound secrecy. Franklin had also found the cause of America so popular, that many officers were anxious to engage in her service; and the enthusiastic young Marquis Lafayette, notwithstanding the ill news from the United States, engaged to embark his life and fortune with Washington and his compatriots. "His Excellency the Marquis of
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