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In the course of this commercial madness the imports greatly exceeded the exports, and there was consequently a rapid drain of specie from the country. The drain of bullion from the Bank of England was immense. In August, 1823, it had 12,658,240, which in August, 1825, was reduced to 3,634,320, and before the end of the year it ran as low as 1,027,000. Between July, 1824, and August, 1825, twelve millions of cash were exported from Great Britain, chiefly to South America. During the Revolutionary war, which had lasted for fourteen years, the capital of the country had been completely exhausted, while all productive labour had been abandoned. The unworked mines were filled with water. They were accessible, it is true, to English speculators, but they were worked exclusively with English capital. The South American mining companies were so many conduits through which a rapid stream of gold flowed from Great Britain. The catastrophe that followed took the commercial world by surprise; even the Chancellor of the Exchequer failed to anticipate the disaster. On the contrary, his Budget of 1825 was based upon the most sanguine expectations for the future, and on the assurance that the public prosperity was the very reverse of what was ephemeral and peculiar, and that it arose from something inherent in the nation. Even at the prorogation of Parliament in July, the Royal Speech referred to the "great and growing" prosperity on which his Majesty had the happiness of congratulating the country at the beginning of the Session. The commercial crisis, however, with widespread ruin in its train, was fast coming upon Britain. Vast importations, intended to meet an undiminished demand at high prices, glutted all the markets, and caused prices to fall rapidly. Merchants sought accommodation from their bankers to meet pressing liabilities, that they might be enabled to hold over their goods till prices rallied. This accommodation the bankers were unable to afford, and sales were therefore effected at a ruinous loss. The South American mines, it was found, could not be worked at a profit, and they made no return for the twenty million pounds of British money which they had swallowed up. The effect was a sudden contraction of the currency, and a general stoppage of banking accommodation. The country banks, whose issues had risen to 14,000,000, were run upon till their specie was exhausted, and many of them were obliged to stop payment. The Plymouth Bank was the first to fail, and in the next three weeks seventy banks followed in rapid succession. The London houses were besieged from morning to night by clamorous crowds, all demanding gold for their notes. Consternation spread through all classes. There was a universal pressure of creditors upon debtors, the banks that survived being themselves upon the edge of the precipice; and the Bank of England itself, pushed to the last extremity, peremptorily refused accommodation even to their best customers. Persons worth one hundred thousand pounds could not command one hundred pounds; money seemed to have taken to itself wings and fled away, reducing a state of society in the highest degree artificial almost to the condition of primitive barbarism, which led Mr. Huskisson to exclaim, "We were within twenty-four hours of barter."

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ONE:But where, all this time, was the Great Commoner? The whole world was astonished when the fact came out that Pitt would accept no post in his own Ministry but that of Privy Seal, which necessitated his removal to the House of Peers. The king himself offered no opposition. Pitt's colleagues were not only astonished, but confounded; for they calculated on having his abilities and influence in the House of Commons. "It is a fall up stairs," said the witty Chesterfield, "which will do Pitt so much hurt that he will never be able to stand upon his legs again." No doubt it was a great mistake, but the infirmity of Pitt's health is an abundant excuse. This matter settled, Chatham condescended to coax the haughty Duke of Bedford, whom he met at Bath, to join him. He explained that the measures he meant to pursue were such as he knew the Duke approved. Having heard him, Bedford replied, proudly, "They are my measures, and I will support them, in or out of office." It was understood that he would receive overtures from Chatham, and, in these circumstances, Parliament met on the 11th of November.
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TWO:[See larger version]The great financial questions of 1786 were the Duke of Richmond's plan of fortifying Portsmouth and Plymouth, and Pitt's proposal of a sinking fund to pay off the national debt, an excise duty on wines, and Pitt's commercial treaty with France. During the previous Session the Duke of Richmond, Master-General of the Ordnance, had proposed a plan of fortifying these large arsenals, so that, in the supposed absence of our fleet on some great occasion, they would be left under the protection of regiments of militia, for whom enormous barracks were to be erected. A board of officers had been appointed to inquire into the advantages of the plan, and their report was now brought up on the 27th of February, and introduced by Mr. Pitt, who moved that the plan be adopted. This scheme was strongly opposed by General Burgoyne, Colonel Barr, and others. Mr. Bastard moved an amendment declaring the proposed fortifications inexpedient. He said the militia had been called the school of the army, but to shut them up in these strongholds, separate from their fellow-subjects, was the way to convert them into universities for pr?torian bands. He protested against taking the defence of the nation from our brave fleet and conferring it on military garrisons; tearing the ensign of British glory from the mast-head, and fixing a standard on the ramparts of a fort. The Bill was rejected, Fox, Sheridan, Windham, and all the leading Oppositionists declaiming against it.
  • THREE:The coasting trade carried on by means of steamers underwent an astounding development during the twenty years now under review. In 1820 there were but nine steamers engaged in it, with a tonnage of 500. The next year there were 188 steamers, and thenceforth they went on doubling for several years. In 1830 the number of vessels was nearly 7,000, with a tonnage of more than a million; in 1840 it was upwards of 15,000, with a tonnage of nearly three millions; and in 1849 it was 18,343, with a tonnage of upwards of four millions and a quarter. This account does not include vessels arriving and departing in ballast or with passengers only, which are not required to enter the Custom House. Steam-vessels were not employed in this kingdom for conveying goods coastwise before 1820, nor in foreign trade, except for the conveyance of passengers, earlier than 1822. In the foreign trade the number of steamers increased gradually from that year till they reached the number of 4,000, with an aggregate tonnage of 800,000.But whilst England had been thus preparing for the augmentation of the navy, America had been aiming a blow at the efficiency of that navy, which must for years, if successful, have prostrated our whole maritime forces, and exposed our shores to the easiest invasion. This intended blow was nothing less than the destruction of our great naval dockyards and arsenals, and military storehouses, at Portsmouth and Plymouth. The chief agent in this infamous design, if the evidence of a miscreant can be believed, was Silas Deane. On the 7th of December the rope-house of the Royal Dockyard at Portsmouth was found to be on fire. By active exertions it was got under, after it had destroyed that building, and was imagined to be an accident. But on the 15th of January, 1777, one of the officers of the dockyard found a machine and combustibles concealed in the hemp in the hemp-house of the same dockyard. Suspicion now fell on a moody, silent artisan, who, on the day of the fire, had been looking about the dockyard, and who, by some chance, had got locked up in the rope-house the night before. His name was not known, but the[234] fact only that he was a painter, and had been called John the Painter. Government immediately offered a reward of fifty pounds for his apprehension; the same sum, with a strange simplicity, being offered to him if he would surrender himself for examination. Nothing, however, could be learned of him in Portsmouth or the country round; but fresh fires were now breaking out at Plymouth Dockyard and on the quays of Bristol. At Plymouth the fire was instantly checked, and the perpetrator was nearly seized. At Bristol the fire was laid near a narrow, deep creek, crowded with shipping, which was nearly dry at low water, so that it was impossible to get the shipping out. Six or seven warehouses were destroyed, but the shipping escaped. In another house at Bristol combustibles were discovered, and the alarm became general that the American incendiaries, having failed to burn New York, were come to England to burn our dockyards and maritime houses. Fortunately, in the beginning of February, a man was apprehended for the perpetration of a burglary at Odiham, in Hampshire; and, by the activity of Sir John Fielding, the London magistrate, he was identified as John the Painter. When brought before Sir John and other magistrates in town, the man conducted himself with tact and address. Though closely examined and cross-questioned by some of the members of the Privy Council, by Lords of the Admiralty, and other officers of the board, he maintained the scrutiny without betraying any embarrassment, or letting anything escape him that could in any degree incriminate him. A confession was, however, wormed out of him by another painter, named Baldwin. Silas Deane, John the Painter declared, according to Baldwin's evidence, had encouraged him to set fire to the dockyards of Plymouth and Portsmouth, Woolwich and Chatham, as the most effectual means of disabling Great Britain; that he gave him bills to the amount of three hundred pounds on a merchant in London, and promised to reward him according to the amount of service he should do to the American cause. Before his execution he freely admitted the truth of the charges against him. He confessed to having twice attempted to fire the dockyard at Plymouth, and to burning the warehouses at Bristol, having in vain endeavoured to deposit his combustibles on board the ships. He, moreover, stated that he had a recommendation from Silas Deane to Dr. Bancroft, in London, to whom he had declared that he would do all the harm he could to England; that the doctor did not approve of his conduct, but had, at his request, promised not to betray him.
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TWO:It was now found that our pretended Mahratta allies, the Peishwa, Scindiah, and other chiefs, were in league with Cheetoo, and unless this conspiracy were broken the most fearful devastations might be expected on our states. The Governor-General represented this to the authorities at home, and recommended that the Pindarrees should be regularly hunted down and destroyed. In the course of 1816 he received full authority to execute this scheme. At the end of October he posted Lieutenant-Colonel Walker along the southern bank of the Nerbudda, to prevent the Pindarrees from crossing into the Company's territories; but as the line of river thus to be guarded was one hundred and fifty miles in length, the force employed was found insufficient against such adroit and rapid enemies. In November Cheetoo dashed across the river between Lieutenant-Colonel Walker's posts, and his forces dividing, one part made a rapid gallop through forests, and over rivers and mountains, right across the continent, into the district of Ganjam, in the northern Circars, hoping to reach Juggernaut and plunder the temple of its enormous wealth. But this division was met with in Ganjam by the Company's troops, and driven back with severe loss. The other division descended into the Deccan, as far as Beeder, where it again divided: one portion being met with by Major Macdonald, who had marched from Hyderabad, was completely cut up, though it was[139] six thousand strong. The other body struck westward into Konkan, under a chief named Sheik Dulloo, and then, turning north, plundered all the western coast, and escaped with the booty beyond the Nerbudda, though not without some loss at the hands of the British troops on that river.Of course, the commercial changes introduced by Mr. Huskisson and Mr. Robinson excited loud murmurs of dissatisfaction from the interests affected, especially the shipping interest. But the best answer to objectors was the continuously flourishing state of the country. At the opening of the Session in 1825, Lord Dudley and Ward, in moving the Address in answer to the King's Speech in the Upper House, observed:"Our present prosperity is a prosperity extending to all orders, all professions, and all districts, enhanced and invigorated by the flourishing state of all those arts which minister to human comfort, and those inventions by which man obtains a mastery over nature by the application of her own powers, and which, if one had ventured to foretell a few years ago, it would have appeared almost incredible." This happy state of things was the result of a legitimate expansion of trade. Manufacturers and merchants were at first guided by a spirit of sober calculation. The steady advance in the public securities, and in the value of property of all sorts, showed that the national wealth rested upon a solid basis. The extension of the currency kept pace with the development of trade and commerce, and the circulation of bankers' paper was enormously increased. But out of the national prosperity there arose a spirit of rash speculation and adventure, resulting in a monetary crisis. The issue of notes by country banks was under no restriction; no measures were taken to secure that their paper represented property, and could be redeemed if necessary. There were hundreds of bankers in the provinces who could issue any quantity of notes they pleased, and these passed as cash from hand to hand. The spirit of speculation and enterprise was stimulated to a feverish degree of excitement by the recognition of the states of Colombia, Mexico, and Buenos Ayres, formally announced in the King's Speech on the 3rd of February, which said that treaties of commerce had been made with those new states. The rich districts of South America being thus thrown open, there was a rush of capitalists and adventurers to work its inexhaustible mines. A number of companies was formed for the purpose, and the gains of some of them in a few months amounted to fifteen hundred per cent. The result was a mania of speculation, which seized upon all classes, pervaded all ranks, and threw the most sober and quiet members of society into a state of tumultuous excitement. Joint-stock companies almost innumerable were established, to accomplish all sorts of undertakings. There were thirty-three companies for making canals and docks, forty-eight for making railroads, forty-two for gas, twenty insurance companies, twenty-three banking companies, twelve navigation packet companies, five indigo and sugar companies, thirty-four metal companies, and many others. The amount of capital subscribed in these various companies, which numbered two hundred and seventy-six, was upwards of 174,000,000. In connection with South America there was the Anglo-Mexican Company, the Brazilian, the Colombian, Real de Monte, and the United Mexican. On the South American shares only ten pounds each had been paid, except the Real de Monte, on which 70 had been paid. We may judge of the extent to which gambling speculation was carried from the following statement of the market prices of the shares, in five of the principal mining companies[243], at two periods, December 10th, 1824, and January 11th, 1825:
TWO:About four months passed happily away, when another event occurred which was very near furnishing a startling illustration of the truth that there is no certain tenure of human happiness. On the night of Wednesday, the 10th of June, London was agitated by a report of an attempt upon the life of the Queen. Next day an investigation took place at the Home Office, from which the public and the reporters of the daily press were excluded. The following are the facts:At a quarter past six on Wednesday evening, the Queen, accompanied by Prince Albert, left Buckingham Palace, in a very low, open phaeton, to take her customary drive in Hyde Park before dinner. The carriage had proceeded a short distance up the road when a young man, who had been standing with his back to the Green Park fence, advanced to within a few yards of the carriage, and deliberately fired at the Queen. The postilions paused for an instant. The Prince ordered them, in a loud voice, to drive on. "I have got another!" exclaimed the assassin, who discharged a second pistol, aimed at the carriage, which also proved harmless. The Queen and the Prince went as far as Hyde Park Corner, and then turned to the Duchess of Kent's mansion, in Belgrave Square. Meanwhile, the assassin remained near the spot, leaning against the park fence, with the weapons in his hand. Several persons laid hold of him, and he was conveyed by two policemen to the Gardener's Lane station-house. After staying a short time with the Duchess of Kent, in Belgrave Square, the Queen and her husband proceeded to Hyde Park, where an immense concourse of persons, of all ranks and both sexes, had congregated. The reception of the royal pair was so enthusiastic as almost to overpower the self-possession of the Queen. They soon returned to Buckingham Palace, attended by a vast number of the nobility and gentry, in carriages and on horseback. A multitude of persons collected at the entrance to the palace, and vehemently cheered the Queen, who, though pale and agitated, repeatedly bowed and smiled in return.
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TWO:To procure peace, Madison now sought the good offices of the Emperor Alexander of Russia with Great Britain, and these offices were readily accepted, for the latter had never willingly gone into or continued this unnatural war. A Congress was appointed at Gothenburg, and thence transferred to Ghent. There, on the 24th of December, 1814, a loose and indefinite peace was concluded, in which every principle on which the war had been begun was left to be settled by commissioners; and some of whichsuch was the difficulty of negotiating with the Americanswere not settled for many years. On these points alone were the two Powers agreedthat all hostilities between the contracting parties and the Indians should be put an end to, and that both parties should continue their efforts for the suppression of the slave-trade. Such was the joy of the north-eastern States of America at the peace that the citizens of New York carried the British envoy, sent to ratify the treaty, in triumph through the streets.Sanguine though the Dissenters had been respecting the growth of the principles of civil and religious liberty, of which the seeds had been sown in tears by the early Puritan confessors, they did not anticipate that the harvest was at hand. As their claims were not embarrassed by any question of divided allegiance or party politics, many members of Parliament who had not supported the relief of the Roman Catholics found themselves at liberty to advocate the cause of the Protestant Nonconformists; while almost all who had supported the greater measure of Emancipation felt themselves bound by consistency to vote for the abolition of the sacramental test. Yet the victory was not achieved without a struggle. Lord John Russell said:"The Government took a clear, open, and decided part against us. They summoned their followers from every part of the empire. Nay, they issued a sort of 'hatti-sheriff' for the purpose; they called upon every one within their influence who possessed the faith of a true Mussulman to follow them in opposing the measure. But, notwithstanding their opposition in the debate, their arguments were found so weak, and in the division their numbers were found so deficient, that nothing could be more decided than our triumph."
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TWO:THE SOUTH SEA BUBBLE. (After the Picture by E. M. Ward, R.A., in the National Gallery, London.)[356]
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"The Clare election supplied the manifest proof of an abnormal and unhealthy condition of the public mind in Irelandthe manifest proof that the sense of a common grievance and the sympathies of a common interest were beginning to loosen the ties which connect different classes of men in friendly relations to each other, to weaken the force of local and personal attachments, and to unite the scattered elements of society into a homogeneous and disciplined mass, yielding willing obedience to the assumed authority of superior intelligence hostile to the law and to the Government which administered it. There is a wide distinction (though it is not willingly recognised by a heated party) between the hasty concession to unprincipled agitation and provident precaution against the explosion of public feeling gradually acquiring the strength which makes it irresistible. 'Concede nothing to agitation,' is the ready cry of those who are not responsiblethe vigour of whose decisions is often proportionate to their own personal immunity from danger, and imperfect knowledge of the true state of affairs. A prudent Minister, before he determines against all concessionagainst any yielding or compromise of former opinionsmust well consider what it is that he has to resist, and what are his powers of resistance. His task would be an easy one if it were sufficient to resolve that he would yield nothing to violence or to the menace of physical force. In this case of the Clare election, and of its natural consequences, what was the evil to be apprehended? Not force, not violence, not any act of which law could take cognisance. The real danger was in the peaceable and legitimate exercise of a franchise according to the will and conscience of the holder. In such an exercise of that franchise, not merely permitted, but encouraged and approved by constitutional law, was involved a revolution of the electoral system in Irelandthe transfer of political power, so far as it was connected with representation, from one party to another. The actual transfer was the least of the evil; the process by which it was to be effectedthe repetition in each county of the scenes of the Clare electionthe fifty-pound free-holders, the gentry to a man polling one way, their alienated tenantry anotherall the great interests of the county broken down'the universal desertion' (I am quoting the expressions of Mr. Fitzgerald)the agitator and the priest laughing to scorn the baffled landlordthe local heaving and throes of society on every casual vacancy in a countythe universal convulsion at a general electionthis was the danger to be apprehended; those were the evils to be resisted. What was the power of resistance? 'Alter the law, and remodel the franchise,' was the ready, the improvident response. If it had been desired to increase the strength of a formidable confederacy, and, by rallying round it the sympathies of good men and of powerful parties in Great Britain, to insure for it a signal triumph, to extinguish the hope of effecting an amicable adjustment of the Catholic question, and of applying a corrective to the real evils and abuses of elective franchise, the best way to attain these pernicious ends would have been to propose to Parliament, on the part of the Government, the abrupt extinction of the forty-shilling franchise in Ireland, together with the continued maintenance of civil disability."Buonaparte very speedily matured his plans for the seizure of Spain, and he began to put them into execution. From Italy, where he was violating the territories of the Pope, and compelling the reluctant Queen of Etruria to give up her kingdom, he wrote to the King of Spain, her father, that he consented to a marriage between the Prince of Asturias and a lady of his family. Whilst he thus gave assurance of his friendship, he ordered his army, lying at Bayonne, to enter Spain at different points, and possess themselves of the strong positions along its frontier. By this means the French were received as friends by the people, and neither the king nor Godoy complained of this gross breach of the Treaty of Fontainebleau. The impudent tricks by which the great fortresses were secured, each of which might have detained an army for years, have scarcely any parallel in history. At Pamplona, on the 9th of February, 1808, the French troops commenced a game of snowballing each other on the esplanade of the citadel, when suddenly they occupied the drawbridge, entered the fortress gate, and admitted a body of their countrymen, who had been placed in readiness, and the fortress was secured. At Barcelona the French gave out that they were about to march. Duchesne, the General, drew up his men before the citadel, on pretence of speaking with the French guard, near the citadel gate, passed suddenly in, followed by an Italian regiment, and the place was their own. St. Sebastian was captured by a number of French being admitted into the hospital, who let in their fellows, and Mountjoy was taken by a like ruse.
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