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THREE:The Pitt Ministry figured with less success as regarded the encroachments of Russia on the Turkish empire. The undisguised policy of Catherine was to press on her operations against Turkey till she had planted herself in Constantinople. Pitt continued as inactive as if there were no danger at all, and the same policy actuated Holland and Prussia. The least support given by these Powers to Gustavus of Sweden would have effectually checked the Russian designs in the East, and have raised Sweden into a position capable of acting as a dead weight on Russian aggression. By very little aid Gustavus would have been able to recover all the territories on the eastern side of the Baltic which had been wrested from Sweden by Russia, and would thus have kept a formidable power always, as it were, at the very gates of St. Petersburg. But Gustavus was left, with his brave heart but limited forces, to contend with Russia alone. He kept down his disaffected nobles by cultivating the interests of the people at large, and maintained a determined struggle with Russia. He sent over the Prince of Anhalt with a small army of about three thousand men at so early a season that the ground was covered with ice and snow. The prince pushed on boldly towards St. Petersburg, and made himself master of the strong forts and defences at Karnomkoski, on the Lake Saima, within two days' march of that capital. In April they were encountered by ten thousand Russians under the command of General Ingelstrom, whom they defeated after a desperate battle, leaving two thousand Russians dead on the field. But the Prince of Anhalt was killed, and the Swedes were not able, with a handful of men, to advance on St. Petersburg, which was in fearful panic. Gustavus was more successful at sea. He and his brother, the Duke of Sudermania, fought the Russians with a very inferior force of ships off Revel, and afterwards off Svenskasund. A considerable number of English officers were serving in the Swedish fleet, amongst them one destined to rise to high distinction, Sidney, afterwards Sir Sidney, Smith. After two days' sanguinary fight at the latter place, Gustavus beat the Russian Admiral Chitschakoff so completely that he took four thousand prisoners, destroyed several of the largest Russian ships, and took or sank forty-five galleys. Catherine was now glad to make peace, which was concluded at Warela, near the river Kymen, but with very different results to what would have been obtained had Gustavus found that support which it was the obvious interest of the whole civilised world to afford him. He agreed that each Power should retain what it possessed before the war, thus conferring on Russia the provinces torn from Sweden. Gustavus complained bitterly of his treatment, and with ample cause.The South Sea Company, with a folly of which extreme greed only is capable, endeavoured to put down these rival schemes and obtained an order from the Lords Justices and writs of scire facias against several of these new bubbles. It was like raising a wind to blow away the bubbles, forgetting that their own was a bubble too, and would go with them. The moment that the people began to distrust one they distrusted all. The panic became as great as the mania had been. The South Sea stock dropped in less than a month from one thousand to below six hundred. There was a simultaneous rush to sell out, and the shares must have sunk instantly to nil but for the gigantic exertions of the Company to raise money and buy in. The relief, however, was but temporary. The bankers and pawnbrokers who had advanced money on scrip broke and fled; merchants, goldsmiths, and speculators rushed away after them. Walpole was summoned in haste from Haughton to devise some means of staying the panic. He endeavoured to get the Bank of England to circulate three millions of South Sea bonds for a year; but the Bank, seeing that the case was desperate, declined it. This was decisive. The rage and despair of the swarming dupes were indescribable. They heaped[48] execrations not only on the South Sea Company, but on Ministers, the king, his mistresses, and the Royal Family, who had all been deep in the affair, and who had taken good care of themselves. George landed at Margate on the 9th of November, soon after which the South Sea stock fell to one hundred and thirty-five. On the 8th of December Parliament met, and promptly began to investigate the scandal.

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