Meanwhile in Ireland, where Lord Anglesey had been succeeded by Lord Wellesley and Mr. Stanley by Mr. Littleton, O'Connell was openly agitating for a Repeal of the union. His conduct was much resented by Lord Grey's followers, and at a meeting at Hull Mr. M. D. Hill challenged the good faith of the Irish party, and declared that an Irish member, who spoke with great violence against the Coercion Bill, had secretly urged the Ministers to force it through in its integrity. O'Connell brought the statement before the House early in the Session, when it was unnecessarily confirmed by Lord Althorp, who said that he had good reason to believe it to be true. After a violent scene, he further admitted that Sheil was one of the members to whom he referred. Mr. Sheil denied the imputation so passionately that, on the motion of Sir F. Burdett, both he and Lord Althorp were taken into custody by the Serjeant-at-Arms. They were released on submitting to the authority of the House, and a committee, after examining into the matter and collecting no evidence of value, were glad to avail themselves of an apology tendered by Hill and to bring the incident to a close. Lord NorthHe forms a MinistryChatham declaims against Secret InfluenceGrenville's Election CommitteeLord North's Conciliatory MeasuresDetermination of the BostoniansThe Boston MassacreTrial of the SoldiersApparent Success of North's MeasuresAffair of the Falkland IslandsPromptitude of the MinistryThe Quarrel composedTrials of Woodfall and AlmonThe Right of Parliamentary ReportingStrengthening of the MinistryQuarrels in the CityThe Royal Marriage ActFate of the Queen of DenmarkAnarchical Condition of PolandInterference of RussiaDeposition of PoniatowskiFrederick's Scheme of PartitionIt is ratifiedInquiry into Indian AffairsLord North's Tea BillLord Dartmouth and HutchinsonThe Hutchinson LettersDishonourable Conduct of FranklinEstablishment of Corresponding CommitteesBurning of the GaspeeDestruction of the TeaFranklin avows the Publication of the LettersWedderburn's SpeechThe Boston Port BillThe Massachusetts Government BillThe Coils of CoercionVirginia joins MassachusettsGage Dissolves the Boston AssemblyHe fortifies Boston NeckThe General CongressA Declaration of RightsThe Assembly at ConcordThey enrol MilitiaSeizure of Ammunition and ArmsMeeting of ParliamentChatham's conciliatory SpeechHis Bill for the Pacification of the ColoniesIts FateLord North's ProposalBurke's ResolutionsProrogation of ParliamentBeginning of the War.
FORE:Nelson, having blockaded the port of Alexandria, sailed to Naples to repair. There he received the news of the intense rejoicing his victory had spread through England, and that he was raised to the peerage by the title of Baron Nelson of the Nile. He found Ferdinand of Naples already collecting an army to drive the French from Rome and Tuscany. Austria, Switzerland, and other countries were again in arms. The Treaty of Campo Formio was at an end by the French violation of it everywhere, and as it was supposed that Buonaparte would never be allowed to get back again, the spirit of Europe had revived. Nelson, allowing himself as little repose as possible, in November had made himself master of the Island of Gozo, separated only by a narrow channel from Malta. He had blockaded Malta itself, and it must soon surrender. Pitt, elated by Nelson's success, and in consequence of the death of the old czarina, Catherine, some two years earlier, now entered into a treaty with her successor, Paul, who was subsidised by a hundred and twelve thousand pounds a month, and great expectations were raised of the effect of his victorious general, Suvaroff, leading an army into Italy. The other members of the second grand coalition were Austria, the Princes of Germany, and the Ottoman Empire. Prussia weakly held aloof. When the British Parliament met on the 20th of November, the late victory and this new alliance with Russia were the themes of congratulation from the throne. Twenty-nine million two hundred and seventy-two thousand pounds were granted with alacrity for the ensuing year, and the nation willingly submitted to the imposition of a new impostthe income tax.
The winter of 1836-7 was marked by great commercial activity, and a strong tendency to over-trading, chiefly on the part of the banks. The result was a reaction, and considerable monetary embarrassment. In the reckless spirit of enterprise which led to these consequences, the American houses took the lead. The American speculators indulged an inordinate thirst for gain by land jobs, and over-trading in British produce. The most remarkable examples of this were afforded by three great American houses in London, called "the three W.'s." From an account of these firms, published in June, 1837, it appeared that the amount of bills payable by them from June to December, was as follows: Wilson and Co.,[411] 936,300; Wigan and Co., 674,700; Wildes and Co., 505,000; total acceptances, 2,116,000. This was upwards of one-sixth of the aggregate circulation of the private and joint-stock banks of England and Wales, and about one-eighth of the average circulation of the Bank of England. The shipments to America by Wigan and Co. amounted to 1,118,900. The number of joint-stock banks that started into existence at this time was remarkable. From 1825 to 1833 only thirty joint-stock banks had been established. In that year the Charter of the Bank of England being renewed, without many of the exclusive privileges it formerly enjoyed, and the spirit of commercial enterprise being active, joint-stock banks began to increase rapidly. There was an average of ten new companies annually, till 1836, when forty-five of these establishments came into existence in the course of ten months. In Ireland there were ten started in the course of two years. The consequence of this greatly increased banking accommodation produced a wild spirit of commercial adventure, which collapsed first in America, where the monetary confusion was unexampledbankers, importers, merchants, traders, and the Government having been all flung into a chaos of bankruptcy and insolvency. This state of things in America had an immediate effect in England. Discounts were abruptly refused to the largest and hitherto most respectable houses of Liverpool and London. Trade, in consequence, became paralysed; prices suddenly dropped from thirty to forty per cent.; and the numerous share bubblesthe railway projects, the insurance companies, the distillery companies, the cemetery companies, the sperm oil, the cotton twist, zoological gardens, and other speculationswhich had floated on the pecuniary tide, all suddenly collapsed, and there was an end to the career of unprincipled adventurers. It is satisfactory, however, to observe that the sound commerce of the country soon recovered the shock thus given; and in less than two years the pecuniary difficulties had passed away. Commerce had resumed its wonted activity, and flowed steadily in legitimate channels. The American banks resumed payment, and the three great American houses, which had involved themselves to such an enormous extent, were enabled to meet all their liabilities.[See larger version]THE ATTACK ON THE "VILLE DE PARIS." (See p. 292.)
