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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.

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CHAPTER III. REIGN OF GEORGE III. (concluded).
THREE:"Hereditary bondsmen! know ye not,
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TWO:No sooner had Collot d'Herbois, Barrre, and that party triumphed over Robespierre than they summoned the members of the tribunal to their baray, on the very morning of the day of his executionand voted them honours amid much applause. The tribunal replied, that though a few traitors like Coffinhal and Dumas had found their way into the tribunal, the majority of them were sound and devoted to the Convention. Accordingly, the next day the Convention handed over to Fouquier-Tinville and his colleagues a list of fresh proscriptions of sixty-nine municipals, and a few days afterwardsnamely, the 12th of Thermidor, being the 30th of Julythey added twelve more, completing eighty-one victims! These were all executed within twenty-four hours. The Convention then fell into new divisions, some members contending for its being time to cease these tragedies, others insisting on maintaining them. Billaud-Varennes, Barrre, and Collot d'Herbois defended the guillotine and Fouquier-Tinville, but the greater number of the enemies of Robespierre denounced them, declared themselves the overthrowers of Robespierre, and assumed the name of Thermidorians, in honour of the month in which they had destroyed him. For the Thermidorians saw that the better part of the public had become sick of blood, and they set about contracting the Reign of Terror. They reduced the powers of the two governing Committees; they decreed that one-fourth of the members should go out every month; they reduced the revolutionary sections of Paris from forty-eight to twelve, and abolished the forty sous a day to the sansculotte patriots for their attendance. A month after the execution of Robespierre, Tallien made a fierce onslaught on the Terrorist system, and declared that there were numbers yet living who had been equally merciless with Robespierre, Couthon, and St. Just; and the next day Lecointre denounced by name Barrre, Billaud-Varennes, and Collot d'Herbois. To put an end to the Jacobin resistance, the Convention closed the Jacobin Club altogether, which had thus only survived the fall of Robespierre about four months. Thereupon the Jacobins began to denounce the Thermidorians as anti-Republicans, but they retorted that they were Republicans of the purest schoolthat of Marat.
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TWO:But a month only elapsed when fresh differences arose in the Cabinet leading to further[373] resignations, and ending in the retirement of Lord Grey from public life. Again Ireland was the rock on which the Cabinet struck and went to pieces. The Irish Coercion Act, which had been passed for one year only, was to be renewed, with modifications, for which purpose a Bill was introduced into the Lords about the middle of June. A large number of the Liberal members of England and Scotland, as well as Ireland, required the omission of the clauses enabling the Lord-Lieutenant to suppress public meetings by proclamationa power which Lord Wellesley was induced by his meddlesome advisers, Mr. Littleton and Lord Brougham, to declare he did not require. His opinion, however, was overruled in the Cabinet, and they agreed to support the Bill as it stood. Lord Althorp had very reluctantly yielded the point, more especially as the necessity for the extra-constitutional powers was denied by the Irish executive and by the Lord Chancellor. Mr. Littleton, the Irish Secretary, having indiscreetly made O'Connell aware of the division in the Cabinet, and of the fact that several of its members were supporting the clause contrary to their convictions, the Irish leader used the knowledge thus obtained with tremendous effect. While sitting under the fierce invectives of his opponent, Lord Althorp felt his position to be intolerable. On quitting the House, after a long and harassing discussion, on the 7th of July, he wrote to the Prime Minister, announcing this fact. Next morning there was a conference, after which Lord Grey transmitted to the king his resignation, with that of Lord Althorp; and on the recommendation of Lord Grey, Lord Melbourne was appointed to the office of Prime Minister, being succeeded in the Home Office by Lord Duncannon; while Lord Althorp, relieved from his obligation with regard to the Coercion Bill, consented to resume the post he had just resigned.
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ONE:But the fleet at Sheerness, which sympathised with that at Portsmouth, did not think fit to accept the terms which had satisfied the seamen of Portsmouth. They were incited by a sailor, named Richard Parker, to stand for fresh demands, which were not likely to meet with the sympathy of either sailors or landsmen, being of a political character and including a revision of the Articles of War. On the 20th of May, the ships at the Nore, and others belonging to the North Sea fleet, appointed delegates, and sent in their demands, in imitation of the Portsmouth men. The Admiralty flatly rejected their petition. On the 23rd of May the mutineers hoisted the red flag; and all the ships of war lying near Sheerness dropped down to the Nore. On the 29th, a committee from the Board of Admiralty went down to Sheerness, to try to bring them to reason, but failed. The mutineers then drew their ships in a line across the Thames, cutting off all traffic between the sea and London. On this, the Government proceeded to pull up the buoys at the mouth of the river, to erect batteries along the shores for firing red-hot balls; and a proclamation was issued declaring the fleet in a state of rebellion, and prohibiting all intercourse with it. This soon brought some of the mutineers to their senses. They knew that every class of people was against them. On the 4th of June, the king's birthday, a royal salute was fired from the whole fleet, as a token of loyalty; the red flag was pulled down on every ship but the Sandwich, on board of which was Parker, and all the gay flags usual on such occasions were displayed. Several of the ships now began to drop away from the rest, and put themselves under protection of the guns of Sheerness. On the 13th of June the crew of the Sandwich followed this example, and delivered up the great agitator, Richard Parker, who was tried, and hanged at the yard-arm of that ship on the 30th. Some others of the delegates were executed, and others imprisoned in the hulks; and thus terminated this mutiny, as disgraceful to the sailors as that at Portsmouth was reasonable and honourable.
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< The effects of the monstrous drain of the war on the revenues of the country were now beginning to show themselves in the manufacturing districts, and the workpeople had broken out in serious riots in Lancashire, Yorkshire, and Cheshire. Instead of attributing their distresses to the vast system of taxation, they attributed them to the increase of machinery, and broke into the mills in many places and destroyed it. This was only adding to the misery by destroying capital, and stopping the very machinery which gave them bread. A committee of inquiry was instituted, and the result showed that the members of Parliament were not a whit more enlightened than the artisans themselves. Instead of attempting to find some means of ameliorating the condition of the starving populationwhich, indeed, they could not do, for nothing but peace and reduction of taxation, and the restoration of the natural conditions of commerce could do it,they recommended coercion, and Lord Castlereagh brought in a severe Bill for the purpose,the first of many such Bills of his, which nearly drove the people eventually to revolution, and, by a more fortunate turn, precipitated reform of Parliament. This Bill, the operation of which was limited to the following March, was carried by large majorities, and Parliament, thinking it had done enough to quiet hungry stomachs in the north, was prorogued on the 30th of July, and on the 20th of September dissolved.The downfall of the French monarchy was the cause, more or less directly, of a series of Continental revolutions, but Spain was less affected by the flight of the monarch who had exerted so baneful an influence upon its policy and its Royal Family than might have been anticipated. Sir Henry Lytton Bulwer was then British Minister at Madrid, and Lord Palmerston was Secretary of State for Foreign Affairs. He evidently expected another revolution in Spain, as appears from a remarkable despatch which he addressed to Sir Henry. Its tone was certainly rather dictatorial, and it is not much wonder that it fired the pride of the Spanish Government. The noble lord wrote as follows:"Sir,I have to recommend you to advise the Spanish Government to adopt a legal and constitutional system. The recent downfall of the King of the French and of his family, and the expulsion of his Ministers, ought to indicate to the Spanish Court and Government the danger to which they expose themselves in endeavouring to govern a country in a manner opposed to the sentiments and opinions of the nation; and the catastrophe which has just occurred in France is sufficient to show that even a numerous and well-disciplined army offers only an insufficient means of defence to the Crown, when the system followed by it is not in harmony with the general system of the country. The Queen of Spain would act wisely, in the present critical state of affairs, if she were to strengthen her executive Government, by widening the basis on which the administration reposes, and in calling to her councils some of the men in whom the Liberal party places confidence.""But perhaps it might be possible to get a Bill passed to disfranchise the Irish forty-shilling freeholdersa class of voters who, as they had been created for acknowledged purposes of corruption in the Irish Parliament, would have nobody to stand up for them in high places, now that they refused to play their patrons' game. This was quite as improbable an issue as the other. The disfranchisement of forty-shilling freeholders had, indeed, been talked of in former years; but, if effected at all, it was to be in connection with a measure of Catholic Emancipation. To propose it now for the avowed purpose of rendering Catholic Emancipation impossible would be to insure the rejection of the Bill. That plan, therefore, fell at once to the ground; and there remained but two others.CHAPTER IX. REIGN OF GEORGE III. (continued).
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