ONE:All these causes of unpopularity were rendered more effective by the powerful political party which now assailed him. Pitt led the way, and the Dukes of Devonshire, Bolton, and Portland, the Marquis of Rockingham, the Earls of Temple, Cornwallis, Albemarle, Ashburton, Hardwicke, and Bessborough, Lords Spencer, Sondes, Grantham, and Villiers, James Grenville, Sir George Savile, and other Whigs, presented a formidable phalanx of opponents in both Houses. The measures, too, which he was obliged to bring forward, were certain to augment his discredit. The funded debt had grown to upwards of a hundred millions, and there were three millions and a half besides unfunded. It was necessary to raise a new loan, and, moreover, to raise a new tax, for the income was unequal to the expenditure, even in time of peace. The Chancellor of the Exchequer, Dashwood, was not a man likely to make these new burdens go down easily. He issued the new loan to the public with so little advertisement, that the friends of the Ministers secured the greater part of the shares, and they soon rose to eleven per cent. premium, by which they were enabled, at the public cost, to make heavy sums. The tax which Sir Francis proposed was one on cider and perry, besides some additional duties on wines. There was at once an outcry in the City against this tax, led on by the Lord Mayor, Alderman Beckford, a great friend of Pitt. The cry was only too sure to find a loud echo from the cider-growing districts. Bute and his Chancellor were quickly compelled to reduce the proposed impost from ten shillings a hogshead, to be paid by the buyer, that is, by the merchant, to four shillings, to be paid by the grower. The tax thus cut down was calculated to produce only seventy-five thousand poundsa sum for which it was scarcely worth while to incur so much odium.
ONE:He despatched a squadron of ten ships of the line to the Mediterranean, under Admiral Haddock; another strong squadron sailed for the West Indies; letters of marque and reprisal were issued to the merchants; and troops and stores were forwarded to Georgia, which the Spaniards had threatened to invade. He gave directions to all merchants in Spanish ports to register their goods with a public notary in case of a rupture. These measures produced a rapid change of tone at the Spanish Court. On comparing the demands on both sides for damages sustained in commerce, there appeared a balance in favour of England of two hundred thousand pounds. Against this, the Spaniards demanded sixty thousand pounds in compensation for the ships taken by Admiral Byng in 1718a claim which Stanhope would never allow, but which had been recognised in the Treaty of Seville, and was now, therefore, acknowledged. This reduced the sum to a hundred and forty thousand pounds, which the Spanish Court proposed should be paid by assignments on the American revenues. This, the Ministers were well aware, might involve the most endless delays and uncertainties, and they certainly showed a most conceding spirit by allowing a deduction of forty-five thousand pounds for prompt payment at Madrid. The sum was now reduced to ninety-five thousand pounds; and this being agreed to, a convention was signed on the 14th of January, 1739.A great portion of the present Session was[143] occupied with discussing the return to cash payments, which, by the Act of Parliament, ought to take place on the 5th of July of this year. It appears that no less than fifty debates and conversations in both Houses took place on this important subject during the Session. Very soon after the meeting of Parliament a secret committee of each House was appointed to inquire into the state of the Bank. These committees were, however, so managed, by delivering to the members lists of suitable persons for such committees, that scarcely any but Ministerial men were voted, though these votes were given by ballot. In the Commons this result was so evident that the Opposition declined to vote at all. The first reports of the committees went rather to close more strictly than to open the issue of gold by the Bank. It had been paying in gold its notes issued previous to January, 1817. This payment it was proposed to stop, as, at present, evidently injurious to the interests of the country. Mr. Peel, on moving for a Bill for this purpose, stated that the gold at the present price was fast finding its way abroad, and was as rapidly absorbed in re-minting a gold coinage for France. It appeared that during the first half of 1818 gold to the value of no less than one hundred and twenty-eight million francs had been coined at the French mint, of which three-fourths were derived from the gold coinage of England. A Bill was accordingly passed to stop payment altogether in gold till the necessary preparations were made by a fresh Bill. Still, the condition of the Bank was represented as flourishing. Its liabilities were stated in January, 1819, as amounting to thirty-three million eight hundred and ninety-four thousand five hundred and eighty pounds; its assets, including the debt due from Government, fifty-three million seven hundred and eighty-three thousand seven hundred pounds. The total Bank surplus appeared to be nineteen million eight hundred and eighty-nine thousand one hundred and twenty pounds; and its surplus, independent of the Government debt, and therefore available for current use, was five million two hundred and two thousand three hundred and twenty pounds. The committees adopted the scheme broached by Mr. Ricardo in his "Proposals for an Economical and Secure Currency," published in 1816. This was that the Bank, in the first instance, should not pay for its notes in gold coin, but in ingots of a certain weight, its fineness being attested by a stamp; and this degree of purity should be regulated from time to time till the gold descended to the Mint price of three pounds seventeen shillings and tenpence-halfpenny per ounce. When the Mint gold at length reached this rate of value, then the payment in coin was to be begun. Resolutions to this effect were moved by the Earl of Harrowby on the 21st of May, and they received the approval, not only of the Ministerial side, but of the leading Opposition members, Lords Grenville, Lansdowne, and King.
