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FORE:The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight.The spirits of the Americans had been raised by the success of attempts against the forts of Ticonderoga and Crown Point, on Lake Champlain. Early in the spring, some of the leading men of Connecticut, and chief amongst them Wooster and Silas Deane, projected this expedition, as securing the passes into Canada. The volunteers who offered for this enterprise were to march across the frontiers of New York, and come suddenly on these forts. The wretched condition of carelessness existing in these important outposts, notwithstanding the alarming state of the colonies, may be known by the result. Phelps, disguised as a countryman, entered the fort on pretence of seeking a barber; and, whilst roaming about in feigned search of him, noted well the ruinous condition of the fort, and the utter negligence of the guard. The next day, Ethan Allen went alone to the fortress, ostensibly on a visit to his friend the commander, leaving his troops concealed in the wood. He represented that he wanted to conduct some goods across the lake, and borrowed twenty of his soldiers to help him. These men he made dead-drunk; and then, rushing suddenly to the fort, where there were only twenty-two soldiers more, he compelled them in their surprise to lay down their arms, set a guard over them, and entered his friend's bed-room and pronounced him a prisoner. He then advanced against the fort of Crown Point, where he found only a garrison of twelve men, and immediately afterwards secured Skenesborough, the fortified house of Major Skene, and took his son and his negroes. _$199_/Month

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