ONE:The Duke brought this letter to Mr. Peel, who read it in his presence, and then at once told him that he would not press his retirement, but would remain in office, and would propose, with the king's consent, the measures contemplated by the Government for the settlement of the Catholic question. Immediately after this decision was taken he attended a meeting of the Cabinet and announced his determination to his colleagues. One of these, Lord Ellenborough, could not refrain from writing to express his admiration of his conduct, dictated by true statesmanlike wisdom; adding that he had acted nobly by the Government, and in a manner which no member of it would forget. On the day that the king got the paper, those of the Ministers who had uniformly voted against the Catholic question had each a separate interview with the king, and individually expressed their concurrence in the course Mr. Peel recommended. The Ministers werethe Duke of Wellington, Lord Lyndhurst, Lord Bathurst, Mr. Goulburn, and Mr. Herries. The king, after this interview, intimated his consent that the Cabinet should consider the whole state of Ireland, and submit their views to him, not pledging himself, however, to adopt them, even if they should concur unanimously in the course to be pursued. The king was not convinced by Mr. Peel's arguments. He admitted it to be a good statement, but denied that it was an argumentative one.
FORE:
FORE:"May 10th, 1839.
FORE:The conditions first agreed upon were, that both England and France were to withdraw their support, either by men or money, to the war in Germany. France was to evacuate the few towns that she held there, as well as Cleve and Guelders. Minorca was to be restored in exchange for Belleisle, which thus fully justified Pitt's capture of that little and otherwise useless island. The fortifications of Dunkirk were to be reduced to the state required by the treaty of Aix-la-Chapelle.It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to docauses that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discoverya box containing 700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from 17,477,290 to 25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds.
