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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.

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This letter, though marked "private and confidential," was, like the Duke's letter to the same prelate, made public, and became the subject of comment in the Association and in the press, which tended still more to embarrass the question by irritating the king and the Duke, and furnishing exciting topics to the enemies of the Catholic cause. The Marquis of Anglesey, indeed, from the time he went to Ireland, held the strongest language to the Government as to the necessity of carrying the measure. At a subsequent period he expressed a wish that his opinions should be made fully known to the king and his Ministers, because they could then better judge of his fitness for carrying into effect the measures they might decide upon adopting. On the 31st of July he wrote:"I will exert myself to keep the country quiet, and put down rebellion under any circumstances; but I will not consent to govern this country much longer under the existing law."[See larger version]NAPOLEON ABANDONING HIS ARMY. (See p. 54.)
Slider 1 ONE:Soon shall thy arm, unconquered Steam! afar
Slider 2 ONE:Scarcely had Colonel Forde returned from this expedition, towards the end of the year 1759, when the Dutch, envious of the English success, sent an armament of seven men-of-war and one thousand four hundred soldiers from Java. They landed on the Hooghly, and began committing ravages; but Forde surprised and defeated them, taking every one of their ships. They were glad to apologise, and pay the expenses of the war. In February, 1760, a few weeks after these events, Clive, whose health was failing, set sail for England, where he was received with the highest clat, and made an Irish peer, as Lord Clive, Baron of Plassey. He soon after entered Parliament.Reports that the king was rapidly recovering now began to fly about Court, daily gaining strength. The Whigs, impatient to seize on office, were in a state of strange excitement; but to go in with the prospect of being immediately dismissed by the king, did not accord with the dignity of the leaders. On the other hand, there were so many good things to be given awayone or two bishoprics, the office of Chief Justice in Eyre, sundry commissions of Major-General, besides expectations of promotions to the rank of Field-Marshalthat the dependents of the party grew impatient. Neither the Whigs nor Pitt knew well what to do. The Lords did not commit the Bill till the 17th, when they made two important additions to it, namely, to place all the palaces, parks, houses, and gardens of the king under the control of the queen, and to give her the care of all the royal children under the age of twenty-one. But, at that very crisis, the king was pronounced convalescent. On the 19th, Lord Thurlow announced this, on the certificate of the physicians; and it was declared by him that their lordships could not, in these circumstances, proceed with the Bill, but had better adjourn till Tuesday next. The Duke of York observed that he should most gladly have corroborated the statement of the Lord Chancellor, but could not, having called the day before at Kew, to desire that he might see his father, but had not been permitted. The House, however, adjourned, and on Tuesday, the 24th, Thurlow informed it that he had seen his Majesty, had found him perfectly recovered, and therefore he moved another adjournment to the Monday following, which was agreed to.
Slider 3 ONE:[See larger version]This Act, which repealed the Test Act, provided another security in lieu of the tests repealed:"And whereas the Protestant Episcopal Church of England and Ireland, and the Protestant Presbyterian Church of Scotland, and the doctrine, discipline, and government thereof respectively are by the laws of this realm severally established permanently and inviolably, I., A., B., do solemnly and sincerely, in the presence of God, profess, testify, and declare, upon the true faith of a Christian, that I will never exercise any power, authority, or influence which I may possess by virtue of the office of , to injure or weaken the Protestant Church, as it is by law established in England, or to disturb the said Church, or the bishops and clergy of the said Church, in the possession of any rights and privileges to which such Church, or the said bishops and clergy, are or may be by law entitled."
ONE:In the south-east of Spain the motley army of British and Sicilians had done sufficient to keep the attention of Suchet engaged, so that he could not quit that post to follow and assist Soult against the main British army. Lord Wellington had instructed Sir George Murray to embark his troops at Alicante, and, sailing to Tarragona, endeavour to make himself master of it; if he found the French too strong in that quarter to enable him to effect his purpose, he was to re-embark, return to Valencia, and then attack the French lines on the Xucar before Suchet could make the long march which would be necessary to support them. Murray had had his army weakened by the withdrawal of two thousand troops by Lord William Bentinck, very unnecessarily, to Sicily; but he undertook these man?uvres, and might have succeeded in capturing Tarragona, but, alarmed at a rumour of Suchet and General Mathieu having combined their forces, and being in march against him, he abandoned the place panic-stricken, and, in spite of the indignant remonstrances of Admiral Hallowell, embarked his troops in the utmost precipitation. Lord William Bentinck arrived on the 17th of June, immediately after the embarkation, but not in time to save nineteen pieces of artillery, which Murray had abandoned in the trenches. Lord Bentinck battered down Fort Balaguer, and then sailed away to Alicante, leaving the Spanish general exposed to the enemy, but he saved himself by escaping into the mountains. For this conduct, Sir George Murray on his return to England was tried by court-martial, and gently reprimanded, but nothing more.The retired Ministers showed for the most part a very hostile attitude, and Pulteney denounced the new Ministry as a "German Ministry." Walpole, for a little time, affected a liberal conduct, declaring, when the Supply of two hundred and fifty thousand pounds was voted, that, as he had before spoken in its favour, he should now vote in its favour, and would show by his proceedings that he had never intended to make the king uneasy, or to embarrass his affairs. But it was not in Walpole's nature to maintain this air of temperance long. He was as violent in opposition as he was able and zealous in office. Whether in or out of office, he was, in fact, equally unscrupulous. He very soon joined himself to Shippen, Wyndham, Bromley, and the other violent opponents of the reigning family; so that Shippen himself ere long said exultingly that he was glad to see that Walpole was no longer afraid of being styled a Jacobite.

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ONE:The main subject for consideration at that moment was the policy of continuing the Act for the suppression of the Catholic Association, which was to expire at the end of the Session of 1828. In connection with this subject a letter from Lord Anglesey came under the Ministry's consideration. "Do keep matters quiet in Parliament," he said, "if possible. The less that is said of Catholic and Protestant the better. It would be presumptuous to form an opinion, or even a sanguine hope, in so short a time, yet I cannot but think there is much reciprocal inclination to get rid of the bugbear, and soften down asperities. I am by no means sure that even the most violent would not be glad of an excuse for being less violent. Even at the Association they are at a loss to keep up the extreme irritation they had accomplished; and if they find they are not violently opposed, and that there is no disposition on the part of Government to coercion, I do believe they will dwindle into moderation. If, however, we have a mind to have a good blaze again, we may at once command it by re-enacting the expiring Bill, and when we have improved it and rendered it perfect, we shall find that it will not be acted upon. In short, I shall back Messrs. O'Connell's and Sheil's, and others' evasions against the Crown lawyers' laws."

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THREE:The Ministerial arrangements being completed, the coronation took place on the 31st of October, and was fully attended by the chief nobles and statesmen, even by Oxford and Bolingbroke, and was celebrated in most parts of the kingdom with many demonstrations of joy. Parliament was then dissolved, and the elections went vastly in favour of the Whigs, though there were serious riots at Manchester, and throughout the Midlands. The hopes of advantage from a new monarch made their usual conversions. In the House of Commons of 1710 there was a very large majority of Whigs; in that of 1713 as great a one of Tories; and now again there was as large a one of Whigs. In the Lords the spectacle was the same. Bolingbroke says, "I saw several Lords concur to condemn, in one general vote, all that they had approved of in a former Parliament by many particular resolutions."
THREE:The purport of these Cabinet Councils was generally understood by the country; but as yet only the most sanguine anticipated the proposal of Sir Robert Peel, when the Times newspaper on the 4th of December announced, apparently from secret information, that it was the intention of the Government to repeal the Corn Laws, and to call Parliament together in January for that purpose. The assertion was received with incredulity, not only by the Opposition, but by the Ministerial journals. One organ of the Tory party placarded its office with a bill, headed "Atrocious fabrication of the Times!" But the latter journal, on the following day, declared that it "adhered to its original announcement." Day by day the controversy raged in the newspapers; but the news was too probable not to gain credence. The result was a conviction throughout the country that the Times had really obtained information of the Government's intentions; but as a matter of fact its information was incorrect, as the Cabinet, far from intending to repeal the Corn Laws, had made up its mind to retire.
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THREE:On the 16th of August a party of English soldiers, sent by the Governor of Fort Augustus to reinforce the garrison at Fort William, were assailed by a number of Keppoch's Highlanders in the narrow pass of High Bridge. They attempted to retreat when they found they could not reach their antagonists in their ambush, but they were stopped by a fresh detachment of the followers of Lochiel, and compelled to lay down their arms. Five or six of them were killed, and their leader, Captain Scott, was wounded. They received the kindest treatment from the conquerors, and as the Governor of Fort Augustus refused to trust a surgeon amongst them to dress the wounds of Captain Scott, Lochiel immediately allowed Scott to return to the fort on his parole, and received the rest of the wounded into his house at Auchnacarrie.Lord Eldon, who was by no means weary of political life, became uneasy about his position, and certain arrangements at which the king had mysteriously hinted. The Lord Chancellor religiously obeyed his injunction to abstain from speaking on politics to anybody. But he was revolving in his mind not less anxiously who was to be the new leader of the House of Commons, and how the Constitution in Church and State might be best protected against the spirit of innovation. On the king's return from his northern metropolis the Lord Chancellor was about to press upon him the promotion to the vacant leadership of the House of Commons of Mr. Peel, who had won high distinction in the late debate upon the Catholic peers, when he found, to his unspeakable chagrin, that Lord Liverpool himself had selected Mr. Canning, and overcome the royal objections to him on the ground of his having been formerly the champion of the queen. He had represented to the king that this was the only arrangement by which the Whigs could be effectually excluded, and he gave him an assurance that Catholic Emancipation, though left an open question, should be resolutely opposed. Great as Mr. Canning's talents for Parliament were, and great as was the want of talent on the Ministerial side of the House, it was not without the utmost reluctance that the Cabinet consented to receive him as an associate. They invited him to fill the place vacated by Lord Londonderry, because he was forced upon them by circumstances, and they felt that the Government could not go on without his aid. His only competitor was Mr. Peel, who had not yet had sufficient opportunity of evincing his great powers for the conduct and discussion of public affairs to command the station which many of his colleagues would have gladly seen assigned to him. Canning was unpopular with the anti-Catholic party in general, and particularly obnoxious to the Lord Chancellor; and, besides, there was the great objection of his having been the friend and adherent of the queen. But Lord Liverpool, the Premier, having been associated with him from early life, was so thoroughly convinced that he was the fittest man for the post, and so well acquainted with his transcendent powers of intellect, that he prevailed upon him to relinquish the Governor-Generalship of India, to which he had been appointed, and to accept the vacant Secretaryship for Foreign Affairs, together with the leadership of the Commons.
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ONE:During the year 1750 the French evinced a hostile disposition. They laid claim to part of Nova Scotia, and refused to surrender the islands of St. Lucia and St. Vincent, as they were bound to do by the Treaty of Aix-la-Chapelle. They continued to stir up bad feeling towards us both in Spain and Germany. The Empress listened with eagerness to the suggestions of France, and co-operated with that country in endeavouring to influence Spain against us. Fortunately, the good disposition of the Queen of Spain, and the able management of Mr. Keene, our Ambassador, foiled all these efforts, and completed a commercial treaty with that country. This treaty was signed on the 5th of October, 1750, and placed us at once on the same footing in commercial relations with Spain as the most favoured nations. We abandoned the remaining term of the Assiento, and obtained one hundred thousand pounds as compensation for the claims of the South Sea Company. The right of search, however, was passed over in silence, and we continued to cut logwood[115] in Campeachy Bay and to smuggle on the Spanish Main, winked at by the Spanish authorities, but liable to interruption whenever jealousy or ill-will might be in the ascendant. In various directions our commerce flourished at this time, and many injurious restrictions were removed, such as those that hampered the whale fishery of Spitzbergen, the white herring and coast fisheries, the trade to the coast of Guinea, the import of iron from the American plantations and of raw silk from China. Our manufactures also grew apace, in spite of the internal jarrings of the Ministry and the deadness of Parliament.

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THREE:In fact, whilst these events had been proceeding on the frontiers of France, Russia, Prussia, and Austria had been dividing Poland amongst them. The King of Prussia, when contemplating his participation in this vile business, issued a proclamation assigning the most virtuous reasons for it. It was to check the spread of French principles in Poland, which had compelled himself and his amiable allies, the Empress of Russia and the Emperor of Germany, to invade Poland. But these pretences were merely a cloak for a shameless robbery. Poland abutted on Prussia with the desirable ports of Thorn and Dantzic, and therefore Great Poland was especially revolutionary in the eyes of Frederick William of Prussia. The Polish Diet exposed the hollowness of these pretences in a counter-manifesto. This produced a manifesto from Francis of Austria, who declared that the love of peace and good neighbourhood would not allow him to oppose the intentions of Prussia, or permit any other Power to interfere with the efforts of Russia and Prussia to pacify Poland; in fact, his love of peace would not allow him to discountenance an aggressive war, but his love of good neighbourhood would allow him to permit the most flagrant breach of good neighbourhood. As for the Empress of Russia, she had a long catalogue of ingratitude against the Poles, in addition to their Jacobinical principles, and for these very convenient reasons she had now taken possession of certain portions of that kingdom, and called on all the inhabitants of these districts to swear allegiance to her immediately. The Empress having thus broken the ice of her real motives, the King of Prussia no longer pretended to conceal his, but called on all the inhabitants of Great Poland to swear allegiance to him forthwith. The Russian Ambassador at Grodno commanded the Poles to carry these orders of Russia and Prussia into effect by a circular dated the 9th of April. The great Polish Confederation, which had invited the interference of Russia in order to carry out their own party views, were much confounded by these announcements of their friends. They reminded the marauders of the engagements entered into by Russia, Prussia, and Austria, at the time of the former partition, to guarantee the integrity of the remainder. But this was merely parleying with assassins with the knife at their throats. The aggressive Powers by force of arms compelled poor King Poniatowski and the nobles to assemble a Diet, and draw up and sign an instrument for the alienation of the required territories. By this forced cession a territory, containing a population of more than three millions and a half, was made over to Russia; and another territory to Prussia, containing a million and a half of inhabitants, together with the navigation of the Vistula, with the port of Thorn on that great river, and of Dantzic on the Baltic, so long coveted. As for the small remainder of what once had been Poland, which was left to that shadow-king, Poniatowski, it was bound down under all the old oppressive regulations, and had Russian garrisons at Warsaw and other towns. But all these Powers were compelled to maintain large garrisons in their several sections of the appropriated country.[420]On the 26th Blucher had nearly annihilated the division of Macdonald. No sooner did he learn the return of Buonaparte to Dresden than he wheeled round upon Macdonald, taking him by surprise, and driving his troops into the rivers[70] Katzbach and Neisse, swollen by the rains. The battle raged the most fiercely near Wahlstadt, and, on the subsidence of the floods, hundreds of corpses were seen sticking in the mud. A part of the French fled for a couple of days in terrible disorder along the right bank of the Neisse, and were captured, with their general, by the Russian commander, Langeron.

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ONE:Wellington was therefore on the point of entering Paris when, on the same day, the 3rd, he received a flag of truce from the Provisional Government, asking for a military convention between the armies at St. Cloud. This was accepted, and one English and one Prussian officer met three French officers, and the convention was concluded by the agreement that the French army should retire behind the river Loire, and that the Allies should be put in peaceable possession of Paris, with all the defences on the Montmartre side of the city, as well as every other. This convention was signed the next day by Wellington, Blucher, and Davoust, and, according to its stipulation, the French troops evacuated Paris, and marched towards the Loire. Ney and Labdoyre made their exit from the city, knowing that they would be arrested by Louis XVIII., if possible.[565]

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TWO:DUNFORD, NEAR MIDHURST, WHERE COBDEN WAS BORN.NAPOLEON AND HIS SUITE AT BOULOGNE. (See p. 490.)

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[16]In England a remarkable event closed the year 1810the appointment of a Regency. For some time the old malady of the king had returned upon him. He had not attended to open and close the last Session of Parliament, and there was a general impression as to the cause. But on the 25th of October, when Parliament had voted the celebration of a general jubilee, on the king's entrance upon the fiftieth year of his reign, it was announced publicly that his Majesty was no longer capable of conducting public business, and the House of Commons adjourned for a fortnight. This was a melancholy jubilee, so far as the king and his family were concerned; but the nation celebrated it everywhere with an affectionate zeal and loyalty. The royal malady had been precipitated by the death of his favourite daughter Amelia. On the 20th or 21st of October he visited her on her death-bed, and she put on his finger a ring, containing her own hair, and with the motto, "Remember me when I am gone." This simple but sorrowful act completed the mischief in progress, and George retired from the bedside of his dying daughter a confirmed lunatic. The princess died on the 2nd of November, but her father was past consciousness of the event.
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