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The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight.[See larger version]
FORE:The House of Commons received the speech with enthusiasm, and carried up an address of thanks in a body. Very different, however, was the reception of the speech in the House of Lords. Lord Wharton proposed that in the address they should declare themselves against a separate peace, and the Duke of Marlborough supported that view. He said that for a year past the measures pursued were directly opposed to her Majesty's engagement with the Allies, had sullied the glories of her reign, and would render our name odious to all nations. Lord Strafford, who had come over from the Hague purposely to defend the Government policy, and his own share in it at Utrecht, asserted that the opposition of the[6] Allies would not have been so obstinate had they not been encouraged by a certain member of that House who corresponded with them, and stimulated them by assurances that they would be supported by a large party in England. This blow aimed at Marlborough called up Lord Cowper, who directed his sarcasm against Strafford on the ground of his well-known illiterate character, observing that the noble lord had been so long abroad that he had forgotten not only the language but the constitution of his country; that according to our laws it could never be a crime in an individual to correspond with its allies, but that it was a crime to correspond, as certain persons did, with the common enemy, unknown to the allies, and to their manifest prejudice. The amendment of Lord Wharton, however, was rejected, and the protest, entered against its rejection by twenty peers and bishops, was voted violent and indecorous, and erased from the journal.

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FORE:

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FORE:Meanwhile, the American emissaries were both busy and successful at the Court of France. Though the Government still professed most amicable relations towards Great Britain, it winked at the constant sale of the prizes taken by American privateers, or those who passed for such, in their ports. The Government had, as we have seen, supplied the insurgents with money and arms. It was now arranged between Silas Deane and the French Minister, Vergennes, that the supplies of arms and ammunition should be sent by way of the West Indies, and that Congress should remit payment in tobacco and other produce. The French Government supplied the American agents with money for their purchases of arms and necessary articles for the troops, also to be repaid in tobacco. Two of the ships sent off with such supplies were captured by the British men-of-war; but a third, loaded with arms, arrived safely. To procure the money which they could not draw from Europe, Congress made fresh issues of paper money, though what was already out was fearfully depreciated. They voted a loan also of five millions of dollars, at four per cent. interest. They authorised a lottery to raise a like sum, the prizes to be payable in loan-office certificates. These measures only precipitated the depreciation of the Government paper; people refused to take it; and Washington, to prevent the absolute starvation of the army, was endowed with the extraordinary power of compelling the acceptance of it, and of arresting and imprisoning all maligners of the credit of Congress. Congress went further, and passed a resolution that their bills ought to pass[237] current in all payments, trade, and dealings, and be deemed equal in value to the same sum in Spanish dollars; and that all persons refusing to take them should be considered enemies to the United States; and the local authorities were called upon to inflict forfeitures and other penalties on all such persons. Still further: the New York convention having laid before Congress their scheme for regulating the price of labour, produce, manufactured articles, and imported goods, it was adopted. But these arbitrary and unscientific measures the traders set at defiance, and the attempts to enforce them only aggravated the public distress. Loans came in slowly, the treasury ran low, the loan offices were overdrawn, and the issue of bills of credit was reluctantly recommenced; ten additional millions were speedily authorised, and as the issue increased, the depreciation naturally kept pace with it. The Commissioners in France were instructed to borrow money there, but the instructions were more easily given than executed.

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FORE:On the 27th of April Pitt introduced a message from the king, recommending the settlement of a suitable provision on the Prince of Wales on his marriage. The Prince expected that Pitt would propose and carry, by means of his compliant majority, which had readily voted away millions to foreign monarchs, a vote for the immediate discharge of his debts. His astonishment may therefore be imagined, when Pitt proposed that Parliament should grant him such an income as should enable him, by decent economy, to defray these debts by instalments through a course of years. Having stated these debts at six hundred and thirty thousand pounds, he proposed to increase the Prince's allowance from seventy-five thousand to one hundred and forty thousand pounds, an increase of sixty-five thousand pounds a-year. Twenty-five thousand pounds of this were to be set apart every year for the liquidation of the debts in the course of twenty-seven years. This was, in fact, only giving him an increase on his marriage of forty thousand pounds per annum; but so unpopular was the Prince that not even that amount of money could be obtained. The question was warmly debated during two months, and it was not till the 27th of June that it was finally settled in still worse terms for the Prince, namely, that his allowance should be one hundred and twenty-five thousand pounds per annum, with the income of the Duchy of Cornwall, about fifteen thousand pounds more, thus making up the one hundred and forty thousand pounds; but out of this seventy-five thousand pounds per annum were appropriated to the payment of his debts, leaving him only sixty-seven thousand pounds a year clear for his own expenditure, or eight thousand pounds per annum less than his previous allowance. With the grant to the Prince this Session closed, namely, on the 27th of June.About this time two publications occurred, which produced long and violent controversiesthose of the pretended "Poems of Rowley," by Chatterton, and "Ossian's Poems," by Macpherson. Chatterton, who was the articled clerk of an attorney at Bristol, a mere youth, pretended[183] that he had discovered Rowley's poems in the muniment room of the Church of St. Mary Redcliffe, Bristol. These poems, written on yellow parchment, and in a most antiquated style, by a boy of sixteen, were palmed upon the world as the genuine productions of one Thomas Rowley, and took in many well-known authors and literary antiquaries, very wise in their own conceit. As the productions of a boy of that age these poems are marvellous, and nothing besides which Chatterton, in his short, neglected life, produced approached them in merit. This, too, was the case with Macpherson, who professed to have collected the poems of Ossian, an old bard of Morven, in the Highlands, and simply translated them into English. He was warmly accused of having written them himself; but as Chatterton, so Macpherson, steadily denied the authorship of the poems thus introduced, and as in Chatterton's case, so in Macpherson's, no other compositions of the professed collector ever bore any relation to these in merit. There can now be very little doubt that Macpherson founded his Ossianic poems on real originals to some extent; but that Chatterton, if he received Rowley's poems from Rowley, did so by inspiration.
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[542]The year 1804 opened by an announcement that his Majesty was suffering under a return of his old malady. On the 14th of February an official bulletin was issued at St. James's Palace, informing the public of the royal indisposition; and the repetition of it from day to day, without specifying the nature of the illness, left no doubt of its real character. Still, on the 29th, Addington assured the House that there was no necessary suspension of the royal functions, and the bulletins grew more favourable; but it was well known that he was not really in a condition to transact business till the following September, though at times, as on the 9th, 10th, and 11th of May, he drove about in public, in company with the queen and princesses. Probably his advisers thought that the hearty cheers with which he was received might have a bracing effect on his mind, which had been cruelly harassed by the separation of the Prince of Wales from his wife, the king's niece, amid grave public scandals. Such a circumstance was exactly calculated to throw the royal mind off the balance; but besides this, the unsatisfactory state of his Cabinet and of parties in Parliament was such as greatly to aggravate his anxiety.During this campaign Catherine had made great progress in her road to Constantinople. Suvaroff had reduced Ismail, a remarkably strong place, which was the key of the lower Danube and the only obstruction of any importance to the Russian advance to the Balkan mountains and to Constantinople. This city had been taken by storm, after a most desperate defence, on the 25th of December, and when, with a little more resistance, the Russians would have been compelled to quit the field by the severity of the season. The carnage on this occasion was of the most frightful kind. The Russians themselves lost nearly ten thousand men, and the Turks thirty thousand peoplemen, women, and children, who were indiscriminately butchered by the orders of Suvaroff, who said to his soldiers, "Brothers, no quarter to-day, for bread is scarce." Every horror possible[375] in war, especially between barbarians, was perpetrated by the Russian hordes in Ismail, who were guilty of the most diabolical atrocities, such as burning whole streets, mosques, and serais. Suvaroff sat down and wrote in Russian rhyme the words quoted by Lord Byron in "Don Juan," "Glory to God and the Empress, Ismail is ours." When Sir Charles Whitworth, the British ambassador, next saw Catherine, she said, in allusion to some strong remonstrances from Britain and Prussia, which took care not to go beyond remonstrances, which were cheap"Since the king, your master, wishes to drive me out of Petersburg I hope he will permit me to retire to Constantinople." The Czarina Catherine still continued her war on the Ottoman empire. The Turks gained several advantages over the Russians on the shores of the Black Sea, and near the Danube, but they were severely repulsed in an attempt to drive the Russians from their conquests between the Black and Caspian Seas, and suffered a terrible slaughter on the banks of the River Kuban. Then Britain, Prussia, Holland, and Austria, from the Congress of Reichenbach, announced to Catherine that they were resolved not to permit further encroachments on Turkey, but Catherine paid not the slightest attention to their remonstrances.The Premier was at this time subjected to a great mortification in being compelled by the House of Commons, and public opinion out of doors, to cancel the appointment of the Marquis of Londonderry as ambassador to St. Petersburg. A deep sympathy with the oppressed Poles, and an abhorrence of the unrelenting despotism of Russia pervaded the public mind in the United Kingdom. The Marquis of Londonderry had distinguished himself by sympathies of an opposite kind, and had characterised the Poles as the Czar's rebellious subjects. It was generally felt that England could not be fairly represented at the Court of St. Petersburg by a man of such well-known sentiments. The press was loud in its condemnation of the appointment, and Mr. Sheil brought the subject before the House of Commons by moving that an Address be presented to his Majesty for a copy of the appointment. As Lord Stanley declared emphatically against the selection of the noble marquis for such a mission, it was evident that if Government had gone to a division they would have been defeated. Sir Robert Peel therefore gave way with a good grace, stating that the appointment had not been formally made out; and though the House seemed to be interfering unduly with the Royal Prerogative, he would not advise his Majesty to persist in it. The motion was then withdrawn, and when Lord Londonderry read the report of the debate in the papers next day, he immediately sent in his resignation. In announcing this in the House of Peers, he said: "Having but one object, and that to serve the king honestly and to the best of my ability, were I to depart from this country after what has passed in the House of Commons, I should feel myself, as a representative of his Majesty, placed in a new, false, and improper position. My efficiency would be impaired, and it would be impossible for me to fill the office to which I have been called with proper dignity or effect. Upon these grounds, I have now to announce that no consideration will induce me to accept the office which his Majesty has been graciously pleased to confer on me."These mischiefs it was proposed wholly to remove by enacting that "the charge for primary distributionthat is to say, the postage on all letters received in a post town, and delivered in the same or in any other post town in the British Islesshall be at the uniform rate of one penny for each half-ounce; all letters and other papers, whether single or multiple, forming one packet, and not weighing more than half an ounce, being charged one penny, and heavier packets to any convenient limit being charged an additional penny for each additional half-ounce." And it was further proposed that stamped covers should be sold to the public at such a price as to include the postage, which would thus be collected in advance. By the public generally, and preeminently by the trading public, the plan was received with great favour. By the functionaries of the Post Office it was at once denounced as ruinous, and ridiculed as fanciful. Lord Lichfield, then Postmaster-General, said of it in the House of Lords, "Of all the wild and visionary schemes I ever heard, it is the most extravagant." On another occasion, he assured the House that if the anticipated increase of letters should be realised, "the mails will have to carry twelve times as much in weight, and therefore the charge for transmission, instead of 100,000, as now, must be twelve times that amount. The walls of the Post Office would burst; the whole area in which the building stands would not be large enough to receive the clerks and the letters." In the course of the following year (1838) petitions were poured into the House of Commons. A select Committee was appointed, which held nearly seventy sittings, and examined nearly eighty-three witnesses in addition to the officers of the department. Its report weakly recommended the substitution of a twopenny for a penny rate, but this was overruled by the Cabinet. During the Session of Parliament that followed the presentation of[465] this report, about 2,000 petitions in favour of penny postage were presented to both Houses, and at length the Chancellor of the Exchequer brought in a Bill to enable the Treasury to carry it into effect. The measure was carried in the House of Commons by a majority of 100, and became law on the 17th of August, 1839. A new but only temporary office under the Treasury was created, to enable Mr. Hill to superintend (although, as it proved, with very inadequate arrangements) the working out of his plan. The first step taken was to reduce, on the 5th of December, 1839, the London district postage to one penny, and the general inland postage to fourpence, the half ounce, except as respected places to which letters were previously carried at lower rates, these rates being continued. On the 10th of January, 1840, the uniform penny rate came into operation throughout the United Kingdom; the scale of weight advancing from one penny for each of the first two half-ounces, by gradations of twopence for each additional ounce or fraction of an ounce, up to sixteen ounces. The postage was to be prepaid, or charged at double rates, and Parliamentary franking was abolished. Postage stamps were introduced on the 6th of May following. The facilities of despatch were soon afterwards increased, especially by the establishment of day mails. But on the important points of simplification in the internal economy of the Post Office, with the object of reducing its cost without diminishing its working power, very little was done. For the time being the loss incurred by the change was more than 1,000,000.
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