The Bill was suffered to pass the second reading, but was thrown out, on the motion of its being committed, by two hundred and twenty-two against two hundred and fourteen. Fox then gave notice of his intention of bringing in a new Bill of his own on India, and demanded to know from the Ministers whether he might expect to proceed in security with it, or whether the House would be dissolved. Pitt did not answer; the question was repeated by other members, but Pitt continued silent, till General Conway said it was a new thing to see a Minister sitting in sulky silence, and refusing to satisfy the reasonable desires of the House. This brought out Pitt with an indignant denial; but he preserved silence as to the probability of a dissolution.
Meer Cossim, for a time, served their purpose. They obtained, as the price of his elevation, a large sum of money and an accession of territory. But he was not a man of the obsequious temper of Meer Jaffier. He removed his court from Moorshedabad to Monghyr, two hundred miles farther from Calcutta. He increased and disciplined his troops; he then made compulsory levies on the English traders, from which they had always claimed exemption. There was a loud outcry, and a determined resistance on the part of the English; but Meer Cossim not only continued to compel them to pay the same revenue dues as others, but imprisoned or disgraced every man of note in his dominions who had ever shown regard to the English. It was clear that he chafed under the impositions of his elevators, and meant to free himself from them and their obligations together. It was in vain that the English Council in Calcutta uttered warning and remonstrance; there was the most violent controversy between the English factory at Patna and Meer Cossim. Vansittart hastened to Monghyr, to endeavour to arrange matters with Cossim. He consented to the payment, by the English, of the inland revenue to the amount of nine per cent.; and on his part he accepted a present for himself from Cossim of seven lacs of rupees, or upwards of seventy thousand pounds. But on this occasion, though Vansittart had pocketed this large bribe from Meer Cossim, the council in Calcutta, who got nothing, voted the terms most dishonourable, and sent a fresh deputation to Cossim at Monghyr. This deputation was headed by Mr. Amyott; but as it went to undo what Vansittart had just done, Cossim, who saw no end of exactions, and no security in treating with the English, caused his troops to fall on the unfortunate deputation as they passed through Moorshedabad, and they were all cut to pieces. Here was an end to all agreement with this impracticable man, so the Council immediately decreed the deposition of Meer Cossim, and the restoration of the more pliant puppet, Meer Jaffier.Fox was very indignant, and made no scruple of attributing the conduct of the king, not to mere report, but to fact. "There is," he said, "a written record to be produced. This letter is not to be put in the balance with the lie of the day;" whereupon he pulled from his pocket a copy of the note said to have been written by the king to Lord Temple. When he sat down, Mr. Grenville rose and stated that he had taken down the words read as the king's note, and had shown them to his relative, Lord Temple, who had authorised him to say that such words had never been made use of by him. But Fox demanded whether Lord Temple had not used words to that effect, and Grenville was silent. Fox continued in a very fierce strain, denouncing back-stairs lords and bedchamber politicians, and declared that the best-meant and best-concerted plans of Ministers were subject to the blasting influence of a villainous whisper. He added that he could not continue in office any longer consistently either with his own honour or the interests of the nation. He felt that he was goaded to it, and upbraided for not resigning instantly; but a very honourable majority of that House stood pledged to a great measure, and Ministers were equally bound not to abandon the affairs of State in the midst of so much anarchy. These last words, and the division, which was nearly two to one in favour of Ministers, left it doubtful, after all, whether Fox and his colleagues would resign. As such language, however, could not be used by Ministers with impunity, and a dissolution of the Cabinet was probable, Erskine moved a resolution, pledging the House to persevere in the endeavour to remedy the abuses in the government of India, and declaring "that this House will consider as an enemy to this country any person who shall presume to advise his Majesty to prevent, or in any manner interrupt, the discharge of this important duty." All strangers were excluded, but it was ascertained that the motion was severely censured as an invasion of the king's prerogative; yet the resolution was carried by one hundred and forty-seven votes against seventy-three.
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The unnatural state of things induced by the war had now brought about a great change in our currency. As we could manage to get in our goods to the Continent by one opening or another, but could not get the produce of the Continent in return, it would have appeared that we must be paid in cash, and that the balance of specie must be in our favour; but this was not the case. By our enormous payments to our troops in Spain, Portugal, and Sicily, as well as in the East and West Indies, and by our heavy subsidies, gold had flowed out of the country so steadily that there appeared very little left in it, and bank paper had taken its place. On the Continent, impoverished as they were, the people tenaciously clung to their gold, and Buonaparte alone could draw it from them in taxes. He always took a heavy military chest with him on his expeditions, and his officers also carried the money necessary for themselves in their belts, or otherwise about their immediate persons. The gold being enormously diminished in quantity in England, was carefully hoarded on all hands, thus again increasing the scarcity, and raising the value of it. The price of bullion had risen from twenty to thirty per cent., and here was a further strong temptation to hoard or send guineas to the melting-pot. This state of things led a certain class of political economists to call for a repeal of the Act for suspension of cash payments, and Francis Horner obtained a committee of inquiry into the causes of the decrease of gold and the increase of paper: and this committee came to the conclusion that the true cause of the evil lay in the excess of paper, and that the way to restrain it would be to allow the demand for gold at the Bank. But the truth was that the cause of the evil was not the excess of paper, but the enormous diminution of gold; and to have opened a legal demand for gold which could not be had would only have produced a panic, and a complete and horrible assassination of all credit and all business. But there were clearer-sighted men in Parliament, who declared that, though bullion had risen in price, bank-notes would still procure twenty shillings' worth of goods in the market, and that they were not, therefore, really depreciated in value. That was true, but guineas had, notwithstanding, risen to a value of five- or six-and-twenty shillings, and might be sold for that. Gold had risen, but paper had not fallen; and gold could not take the place of paper, because it did not, to any great extent, exist in the country; if it had, paper must have fallen ruinously. Mr. Vansittart and his party, therefore, moved resolutions that the resumption of cash payments being already provided for six months after the conclusion of peace, was an arrangement which answered all purposes, and ought not to be disturbed; that this would keep all real excess of paper in check, and leave gold to resume its circulation when, by the natural influence of peace, it flowed again into the country. These were, accordingly, carried.But whilst some little freedom from restrictions for Dissenters was thus forced from the Church, a stout battle was going on, and continued to go on through the whole reign, for giving to the Roman Catholics the common privileges of citizens. On account of their faith they were excluded from all civil offices, including seats in Parliament. We shall see that some slight concessions of both civil and military privilege were, in the course of this contest, made to them; but to the end of this reign, and, indeed, until 1829, the full claims of the Catholics continued to be resisted. We can only cursorily note the main facts of this long-protracted struggle. In the early part of the reign a degree of relief was afforded which promised well for the cause of the Catholics; but these promises were not fulfilled. In May, 1778, Sir George Savile brought in a Bill to relieve the Catholics from the provisions of the Act of 1699 for preventing the growth of Popery. By this Act Catholic priests were not allowed to enter England, and, if found there, were at the mercy of informers; Roman Catholics were forbidden to educate their own children, or to have them educated by Papists, under penalty of perpetual imprisonment; and they were not allowed to purchase land, or hold it by descent or bequest; but the next of kin who was a Protestant might take it. Sir George's Act passed both Houses, and by it all Roman Catholics were restored to the privileges of performing divine service, if priests, and of holding land, and educating children, on taking an oath of allegiance, of abjuration of the Pretender, and rejection of the doctrine that it was lawful to murder heretics, was right to keep no faith with them, and that the Pope or any foreign prince had any temporal or civil jurisdiction within these realms. The consequence of this degree of indulgence to the Catholics was the famous Gordon Riots in London and similar ones in Edinburgh, which had the effect of frightening[166] the Government out of further concessions. A similar Bill was passed in Ireland in 1782. The Bill of 1778, however, was confirmed and considerably extended by a Bill brought in by Mr. Mitford, afterwards Lord Redesdale, in 1791, and, after a long discussion, was passed by both Houses in June of that year. This Bill legalised Roman Catholic places of worship, provided they were registered and the doors were not locked during service; it recognised the right of Catholics to keep schools, except in Oxford and Cambridge, and provided that no Protestant children were admitted. It permitted Catholic barristers and attorneys to practise on taking the new oath; and it removed the penalties on peers for coming into the presence of the king; in fact, it left little disability upon Catholics except that of not being eligible for places in Parliament, or any other places under Government, unless they took the old oaths.