THREE:As the French approached Madrid, whither Buonaparte was coming in person, the Junta, which had taken no measures to render it defensible while they had time, were now all hurry and confusion. They began to collect provisions; the stones were torn up to form barricades. A desperate resistance might have been made, as there had been at Saragossa, but there was treachery in the city. The wealthy inhabitants, merchants and shopkeepers, as well as the aristocracy, were far more anxious to save their property than their country; the cowardly Junta having issued orders, lost heart, and fled for Badajos. On the 2nd of December, the anniversary of his coronation, Buonaparte arrived before Madrid, and summoned it to surrender; and this being unheeded, he prepared to storm it the next morning. Had Palafox been there, there would have been, probably, a brave defence. The next morning the storming commenced, and the French forced their way as far as the palace of the Duke de Medina Celi, the key of the whole city. The place was then summoned afresh, and the governor now proposed a surrender. The fact was, that he had already settled in his mind to go over to the French, as the strongest party, and he gave no encouragement or assistance to the citizens, who still continued from behind their walls and barricades to fire on the French. On the 4th he declared that the city must surrender; and the French marched in. Many of the people fled and the rest were disarmed; but Buonaparte, who wanted to keep Madrid uninjured and in good temper for King Joseph, gave strict orders that the city should not be plundered, nor the people treated with rudeness. He fixed his residence about four miles from Madrid, and issued thence imperial decrees and a proclamation, informing the Spaniards that all further resistance was useless; that he wanted his brother to reign in quiet, but that if this were not permitted, he would come and reign there himself, and compel submission; for God had given him the power and inclination to surmount all obstacles. He then set out to drive the "English leopards" from the Peninsulaa task that was to try him to the uttermost.From this episode of fire and fanaticism we recur to the general theme of the war with Spain, France, and America, in which England was every day becoming more deeply engaged. From the moment that Spain had joined France in the war against us, other Powers, trusting to our embarrassments with our colonies and those great European Powers, had found it a lucrative trade to supply, under neutral flags, warlike materials and other articles to the hostile nations; thus, whilst under a nominal alliance, they actually furnished the sinews of war against us. In this particular, Holland, the next great commercial country to Britain, took the lead. She furnished ammunition and stores to the Spaniards, who all this while were engaged in besieging Gibraltar. Spain had also made a treaty with the Barbary States, by which she cut off our supplies from those countries. To relieve Gibraltar, Admiral Sir George Rodney, who was now appointed to the command of our navy in the West Indies, was ordered to touch there on his way out. On the 8th of January 1780, when he had been a few days out at sea, he came in sight of a Spanish fleet, consisting of five armed vessels, convoying fifteen merchantmen, all of which he captured. These vessels were chiefly laden with wheat, flour, and other provisions, badly needed at Gibraltar, and which he carried in with him, sending the men-of-war to England. On the 16th he fell in with another fleet off Cape St. Vincent, of eleven ships of the line, under Don Juan de Langara, who had come out to intercept the provisions which England sent to Gibraltar. Rodney had a much superior fleet, and the Spanish admiral immediately attempted to regain his port. The weather was very tempestuous, and the coast near the shoal of St. Lucar very dangerous; he therefore stood in as close as possible to the shore, but Rodney boldly thrust his vessels between him and the perilous strand, and commenced a running fight. The engagement began about four o'clock in the evening, and it was, therefore, soon dark; but Rodney, despite the imminent danger of darkness, tempest, and a treacherous shore, continued the fight, and the Spaniards for a time defended themselves bravely. The battle continued till two o'clock in the morning; one ship, the San Domingo, of seventy guns, blew up with six hundred men early in the action; four ships of the line, including the admiral's, of eighty guns, struck, and were carried by Rodney safe into port; two seventy-gun ships ran on the shoal and were lost; and of all the Spanish fleet only four ships escaped to Cadiz.
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THREE:Before this, however, the financial statement for the year had been made, and for awhile the Corn Law question was suspended for the country to recover from its astonishment at finding in the Minister of the Conservative party one of the boldest reformers of our tariff who had ever occupied the Ministerial benches. But yesterday his position had appeared one of the greatest difficulty, in which a cautious hold upon the established sources of revenue, with some well-balanced proposals for additional taxes, was all that could be expected. He had not the good fortune of Mr. Goulburn or Lord Althorp in having a surplus to dispose of. The Whig Government had bequeathed to their successors a deficit, which had been increasing from year to year, with a revenue falling off even in the face of new taxes. How[488] was the deficit to be met was the question which filled the mouths of public men; a question which was answered by the famous financial statement of Sir Robert Peel on the 11th of March. After showing that the deficiency for the coming year would be little short of 2,500,000, and that this deficiency might be expected to be considerably augmented by the position of affairs in India and China, the Minister declared that he would not consent to resort to the miserable expedient of continual loans. He declared that he would not attempt to impose burdens upon the labouring classes, and that if he did, recent experience had shown that they would be defeated. In fact, the country had arrived at the limits of taxation upon articles of consumption. After ridiculing the various suggestions of people who were constantly sending him projects for taxes on pianofortes, umbrellas, and other articles, accompanied with claims of very large percentages upon the proceeds, he acknowledged the principle laid down by financiers that increased revenue may be obtained by taking off the taxes which pressed upon industry, but declared that the first effect was always a diminution in revenue, and that time was found necessary to restore the amount. In these circumstances, he stated what the measure was which, under a deep conviction of its necessity, he was prepared to propose, and which, he was persuaded, would benefit the country, not only in her pecuniary interests, but in her security and character. His scheme was this: he proposed, for a period to be limited, an income tax of not more than 3 per cent., from which he would exempt all incomes under 150, and in which he would include not only landed but funded property. Sir Robert Peel calculated that the tax would yield 3,350,000 a year, a sum which, with an addition to the spirit duties in Ireland, and an export duty of 4s. on coals, would not only cover the existing deficiency, but enable him to remit indirect taxes to the amount of 1,200,000. The sliding scale had brought little credit to the Minister, and the income tax was in its nature an unpopular measure; but the proposal to reduce the custom duties on 750 out of the 1,200 articles in the tariffto remove prohibitions altogether (in itself a vast concession to Free Trade doctrines)to reduce the duties on raw materials of manufactures to five per cent. or lessto keep the duties on articles partially manufactured under twelve per cent., and on articles wholly manufactured under twenty per cent., was a scheme which excited general admiration. The measure was, indeed, contested by the Whig Opposition at every stage. The preliminary resolutions were debated for eight nights. There were many of Sir Robert Peel's old supporters who looked on the financial plan with distrust, as being founded, in a great measure, avowedly on those principles of political economy which they had been accustomed to sneer at; but, in truth, it was not unfavourable to the interests of their party. We have already seen that the new taxat least, if a temporary onewas calculated to impose a far greater burden upon the manufacturing and moneyed class than upon the landowners; in fact, by exempting incomes under 150 a year, and assessing land only upon its net rental, the burden was imposed almost entirely upon that middle class which was the especial object of the dislike of Tories of the more advanced kind. At the same time, by cheapening articles of general consumption, the Minister did something towards securing popularity among the working classes, who, as exemplified in the Chartist agitation, were not always disposed to take part against the landowners. The Income Tax Bill passed, after considerable opposition in the Commons. An amendment proposed by Lord John Russell was rejected by a vote of 302 to 202, and another amendment, proposing the reading of the Bill on that day six months, having been thrown out on the 18th of April by a vote of 285 to 188, the third reading was carried by a majority of 130 on the 30th of May. No debate took place in the Lords until the third reading, when the Bill passed by a majority of 71.Of all the expectants of office in the Wellington Administration, the most bitterly disappointed was the ex-Chancellor, Lord Eldon, to whom official life had from long habit become almost a necessity. He had enjoyed power long enough in reason to admit of his retirement with a contented mind; but the passion for it was never stronger than at the present moment. He hastened to London a few days after Christmas on account of rumours of a dissolution of the Cabinet. Having so often done this when there was a talk of a Ministerial crisis, he was called the "stormy petrel." Believing that he had mainly contributed to bring about the Ministerial catastrophe, he was dreadfully mortified when he saw in the newspapers the list of the new Ministers beginning thus: "Chancellor, Lord Lyndhurst." He had not set his heart this time on the office of Lord Chancellor, he would have been content with the Presidentship of the Council or Privy Seal; but his name was not found in the list at all, nor had he been consulted in any way, or informed about what was going forward during the fortnight that passed before the Ministerial arrangements were completed. This utter neglect of his claims excited his anger and indignation to the utmost, and caused him to indulge in bitter revilings and threats against the new Cabinet. The great Tory lords shared in his resentment, and felt that they were all insulted in his person. Referring to the Ministerial arrangements, he wrote:"You will observe, Dudley, Huskisson, Grant, Palmerston, and Lyndhurst (five) were all Canningites, with whom the rest were three weeks ago in most violent contest and opposition; these things are to me quite marvellous. How they are all to deal with each other's conduct, as to the late treaty with Turkey and the Navarino battle, is impossible to conjecture. As the first-fruits of this arrangement, the Corporation of London have agreed to petition Parliament to repeal the laws which affect Dissenters."
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