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The king, in the first instance, applied to Lord Shelburne to form a Ministry; but he was bound by engagements to Wentworth House, and honourably refused to take the lead. George then tried Lord Gower as ineffectually, and so was compelled to send for Lord Rockingham, who accepted office, on the condition that peace should be made with America, including the acknowledgment of its independence, if unavoidable; administrative reform, on the basis of Mr. Burke's three Bills; and the expulsion of contractors from Parliament, and revenue officers from the exercise of the elective franchise. The king stood strongly on the retention of Lord Chancellor Thurlow and Lord Stormont in their offices. Rockingham, with reluctance, conceded the retention of Thurlow, but refused that of Stormont. The choice of Lord Rockingham was such as could only have been made where family influence and party cliques had more weight than the proper object of a Ministerthe able management of national affairs. Rockingham, though a very honourable man, was never a man of any ability, and though now only[288] fifty-two, his health and faculties, such as they were, were fast failing. Besides this, there was a violent jealousy between him and Lord Shelburne, who became his colleague, and brought in half of the Cabinet. The shape which the Ministry eventually assumed was this:Lord Rockingham became First Lord of the Treasury and Premier; the Earl of Shelburne and Charles Fox, Secretaries of State; Thurlow, Lord Chancellor; Camden, notwithstanding his age, President of the Council; Duke of Grafton, Privy Seal; Lord John Cavendish, Chancellor of the Exchequer; Keppelmade a viscountFirst Lord of the Admiralty; General Conway, Commander of the Forces; the Duke of Richmond, Master-General of Ordnance; Dunningas Lord AshburtonChancellor of the Duchy of Lancaster. Burke was not admitted to the Cabinet, for the Whigs were too great sticklers for birth and family; but his indispensable ability insured him the Paymastership of the Forcesby far the most lucrative office in the hands of Government, but the salary of which he was pledged to reduce by his Bill. Pitt was offered a place as Lord of the Treasury; but he had already declared, on the 8th of March, on the debate on Lord John Cavendish's motion, that he would never accept a subordinate situation. Dundas remained in office, as Lord Advocate, and John Lee was made Solicitor-General. Such was the new Administration: it embraced, as leaders, five Rockinghamites and five Shelburnites. The eleventh member of the Cabinet, Thurlow, belonged to neither side, but was the king's man. Fox saw himself in office with him with great repugnance, and Burke felt the slight put upon him in excluding him from the Cabinet.

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The cider tax passed, opposed by thirty-nine Peers and a hundred and twenty Commoners; but it left a very sore feeling in the western counties, that cider, worth only five shillings a hogshead, the poor man's meagre beverage, should have a tax levied on it nearly doubling the price; whilst that at fifty shillings a hogshead, the rich man's luxury, only paid the same. The growers even threatened to let the apples fall and rot under the trees, rather than make them into cider, subject[179] to so partial a tax. No imposition had excited so much indignation since Sir Robert Walpole's Excise Bill, in 1733. In the cider counties bonfires were made in many places, and Bute was burnt emblematically as a jack-bootJack Buteand his supposed royal mistress under that of a petticoat, which two articles, after being carried about on poles, were hurled into the flames.THE FOUR COURTS, DUBLIN.News now came that the Brest fleet was putting to sea. On the 7th of May Lord Bridport went on board and ordered anchor to be weighed. Not a man stirred; nor was it likely. No sooner had Lord Bridport told them what was not true, that their demands were acceded to, than, in the House of Lords and the House of Commons, Ministers had spoken of the subject in very ambiguous terms, and the Board of Admiralty had only ended the ambiguity by issuing an order on the 1st of May, commanding, in consequence of "the disposition lately shown by the seamen of several of his Majesty's ships," that the arms and ammunition of the marines should be kept in readiness for use in harbour, as well as at sea; and that on the first appearance of mutiny the most vigorous measures should be taken to quell it. This was ordering the officers of marines to fire on the sailors who should refuse to be thus shamefully juggled out of their promised rights by the Government. On board the London, Vice-Admiral Colpoys pushed the matter so far that his men resisted orders; and as one was unlashing a gun, Simpson, the first-lieutenant, told him that if he did not desist he would shoot him. The man went on unlashing, and Simpson shot him dead! On this, the sailors, in a rage, disarmed the officers and proceeded to hang Simpson at the yard-arm. Colpoys then begged for the lieutenant's life, assuring them that the order was his own, and that Simpson had only done his duty in obeying it. The chaplain and surgeon joined in the entreaty; and the men, far more merciful and reasonable than their commanders, complied. They ordered, however, Colpoys and all the officers to their respective cabins, and put the marines, without arms, below deck. Similar scenes took place on the other ships, and the fleet remained in the hands of the sailors from the 7th to the 11th of May, when Lord Howe arrived with an Act of Parliament, granting all their demands. Howe, who was old and infirm, persuaded them to prepare a petition for a full pardon. They, however, accompanied this petition by an assurance that they would not serve again under the tyrannical officers whom they had put on shore; and this was conceded. Admiral Colpoys was included in this list of officers proscribed by their oppressed men, along with four captains, twenty-nine lieutenants, seventeen masters' mates, twenty-five midshipmen, five captains of marines, three lieutenants, four surgeons, and thirteen petty officers of marines. The whole being arranged on the 15th of May, the red flag was struck; and the deputies waited on Lord Howe to express their obligations to him for his kind services on behalf of the oppressed seamen. His lordship gave them luncheon, and then was escorted by them, along with Lady Howe, on board the fleet. On their return, they carried Lord Howe on their shoulders to the Governor's House. Sir Roger Curtis's squadron had just come in from a cruise, and on learning what had passed, declared themselves ready to support the rest of the fleet; but the news which Howe had brought at once satisfied them, and all eagerly prepared to set sail, and demonstrate their loyal zeal by an encounter with the Brest fleet.

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THREE:But that there should be a majority at all on such a question brought the Opposition to try an experiment which they had been for some time planning. This was the absurd scheme of seceding in a body from the House of Commons, on the plea that a paid and standing majority rendered all reason and argument nugatory. In the course of his farewell speech, Wyndham made use of such violent language, that Mr. Pelham jumped up to move the commitment of the honourable member to the Tower; but Walpole was too well aware that such a proceeding would only have served the ends of the Opposition, rendering them martyrs to their country's cause, and raising a vivid interest in their behalf. He therefore stopped him, and said that the measures which that gentleman and his friends might pursue gave him no uneasiness; on the contrary, the House was much obliged to them for pulling off the mask. Relieved of their presence, he now carried his measures in unopposed quiet.

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THREE:In the meantime the nation began to form itself rapidly into two partiesReformers and Anti-Reformers. The Tories were all reunited, driven together by the sense of a common danger; divisions occasioned by the currency and agricultural distress were all forgottenall merged in one mighty current of Conservative feeling. The whole strength of that party rallied under the leadership of Sir Robert Peel. His bitterest opponents, such as Lord Winchilsea and Sir Edward Knatchbull, were among the most ardent and cordial of his allies. On the other hand, the Reformers were in transports of joy and exultation. "I honestly confess," said Mr. John Smith, "that when I first heard the Ministerial proposal, it had the effect of taking away my breath, so surprised and delighted was I to find the Ministers so much in earnest." This was the almost universal feeling among Reformers, who comprised the mass of the middle and working classes. No Bill in the Parliamentary annals of Britain was ever honoured like this. It was accepted by universal suffrage as the Charter of Reform. Every clause, every sentence, every word in it was held sacred; and the watchword at every meeting was, "The Bill, the whole Bill, and nothing but the Bill." Petitions were got up in every town, and almost every parish, some of them bearing twenty thousand or thirty thousand signatures, demanding the passing of the Bill untouched and unimpaired.
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TWO:Walpole, however, continued to oppose the South Sea Bill in the Commons, declaring that the terms were too extravagant ever to be fulfilled; that the experiment could result in nothing but a fearful increase of the costs of stockjobbing, and final confusion and ruin. He insisted that, before the proposals of the Company were accepted,[47] the rise of their stock should be limited, and every means taken to prevent the fever of infatuation that would ensue from the promise of dividends out of funds which could never be realised. He proposed for this purpose the introduction of a clause fixing the number of years' purchase to be granted to the annuitants of the South Sea Company; but to this it was objected that it was the interest of the Company to take up the annuities; and, as the annuitants had the power of coming in or not, as they pleased, the Company would, of course, offer advantageous terms, and, therefore, the whole affair might be safely left to private adjustment. Aislabie added that the South Sea Company would not submit to be controlled in an undertaking they were to pay so dear for. The Bill passed both Houses.But fresh light continued to break on the all-pervading corruption. The Commissioners of Naval Inquiry presented a fresh report, abounding with proofs of the villainies that had been going on in that department. The Military Commissioners had a like frightful exposure to make of frauds and peculations which had been going on wholesale, especially in the West Indies. The same result followed the investigations of the committee that inquired into the appointment of cadets to the East India Service. There was abundance of proofs of the sale of such places, and even Lord Castlereagh was implicated. It was found that as President of the Board of Controlthe Minister, in fact, for Indian Affairshe had presented a writership to his friend, Lord Clancarty, which Clancarty had bartered with a Mr. Reding for a seat in Parliament, and which Reding immediately sold for three thousand pounds. Lord Archibald Hamilton immediately moved that Lord Castlereagh had been guilty of an abuse of his authority as President of the Board of Control. Castlereagh replied that, when he presented his friend, Lord Clancarty, with the writership, he had no notion that Reding was a regular broker in parliamentary seats, though he did not deny that Reding had told him that he meant to make over the place to a Member of Parliament who had a nephew whom he wished to send to India, and that this Member of Parliament would vote accordingly. The virtuous Wilberforce seemed to hold this easy-going morality, for he voted for Lord Castlereagh, and, in spite of the denunciations of Sir Francis Burdett, Mr. W. Smith, and others, Lord Archibald Hamilton's motion was rejected by two hundred and sixteen against a hundred and sixty-sevenand Lord Castlereagh walked away scathless. There was immediately another charge brought against him, in company with the Honourable Henry Wellesley, the brother of General Wellesley, and late Secretary of the Treasury, for corrupt practices in the election of members of Parliament; but the ministerial majority outvoted Mr. Madox, the mover. About the same time Mr. Curwen brought in a Bill to prevent such practices, and to obtain purity of Parliament by extinguishing bribery, and this was suffered to pass when all vitality had been taken out of it. On the 15th of June Sir Francis Burdett also made a motion for extensive parliamentary Reform; but the greater part of the members of Parliament had already left town, and the motion was rejected by seventy-four against fifteen. On the 21st the Session was closed with a speech which took a hopeful view of the war in Spain, and also of that which Austria had again commenced. We may now return to the details of these great contests on the Continent.

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TWO:At the commencement of the Session a notice of a motion of want of confidence in the Ministry was given by Sir John Yarde Buller. He assigned as reasons for bringing forward the motion the disturbed and unsatisfactory state of the country, which he ascribed to the system of popular agitation, "nurtured and fostered," as he alleged, by the Ministers during the preceding two years. After a debate of four consecutive nights the motion was rejected by 308 votes to 287. The division was fairly satisfactory, and another source of gratification to the Ministry was the passing of the Irish Municipal Bill, which became law in spite of a characteristic protest from Bishop Phillpotts, who regarded the measure "as a deliberate and wilful abandonment of the cause of true religion which had provoked the justice of Almighty God and given too much reason to apprehend the visitation of Divine vengeance for this presumptuous act of national disobedience." In this Session Sir Robert Peel at last terminated the scandals connected with election committees by a plan which authorised the Speaker to appoint a general committee of elections, with the duty of selecting election committees to try each particular[471] case. Sir Francis Baring's Budget was a considerable improvement upon those of his indifferent predecessor, Mr. Spring-Rice, whose careless finance had produced no less than four successive deficits. He acknowledged a deficit of 850,000, and asked for a vote of credit. He further imposed an additional tax of 4d. a gallon on spirits, increased the customs and excise by 5 per cent., and the assessed taxes by 10 per cent.

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TWO:[See larger version]BELL'S "COMET." (See p. 421.)

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TWO:With these superb demonstrations on the part of England terminated the war. Her enemies discovered that her hoped-for fall was yet far off, and were much more inclined to listen to overtures of peace, of which they were now all in great need. These negotiations had been begun by Fox immediately on the accession of the Rockingham Ministry to office. Unfortunately the division of work between two Secretaries of State entailed a double negotiation. To Fox as Secretary of Foreign Affairs fell the arrangements for peace with France and Spain and Holland, to Lord Shelburne as Colonial Secretary fell all arrangements connected with the colonies, that is, with the United States. It was most important that the two Ministers should be in close accord. Unfortunately their views differed widely. Fox was for the immediate recognition of the independence of America; Shelburne urged that to give independence at once was to throw away a trump card. Further, Mr. Oswald, Shelburne's agent, was duped by Franklin into accepting from him a paper, in which the surrender of Canada was laid down as a basis of peace. This paper Shelburne probably showed to the king, but, with great duplicity, refrained from mentioning its existence to his colleagues. On the 8th of May Mr. Thomas Grenville, Fox's agent, arrived at Paris, and negotiations were begun in real earnest. But the na?ve confession of Oswald that peace was absolutely necessary to England greatly hampered his efforts, and in a conversation with Lord Shelburne's envoy the existence of the Canada paper leaked out. Fox was naturally furious, but the majority of the Cabinet were opposed to him, and voted against his demand for the immediate recognition of American independence. He only refrained from resigning because he would not embitter Lord Rockingham's last moments in the world. Lord Shelburne became Premier in July.

THREE:On the 19th of August the new Parliament assembled. The Session was opened by commission; the Royal Speech, which was read by the Lord Chancellor, contained a paragraph referring to the duties affecting the productions of foreign countries, and suggesting for consideration the question whether the principle of protection was not carried to an extent injurious alike to the income of the State and the interests of the people; whether the Corn Laws did not aggravate the natural fluctuations of supply; and whether they did not embarrass trade, derange the currency, and by their operation diminish the comfort and increase the privations of the great body of the community. Here was a distinct enunciation of the principles of Free Trade in the Speech from the Throne, for which, of course, the Ministers were responsible. The Address in the House of Lords was moved by Earl Spencer, a decided Free Trader, and seconded by the Marquis of Clanricarde. The debate was relieved from nullity by the Duke of Wellington's testimony to the conduct of Lord Melbourne towards the Queen. The Duke said"He was willing to admit that the noble viscount had rendered the greatest possible service to her Majesty, in making her acquainted with the mode and policy of the government of this country, initiating her into the laws and spirit of the Constitution, independently of the performance of his duty as the servant of her Majesty's Crown; teaching her, in short, to preside over the destiny of this great country." The House divided, when it was found that there was a majority of 72 against the Government.[See larger version]
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THREE:
THU 14 May, 2015
FORE:Lord Oxford's case was brought at length to a termination also in his favour. His friends having complained of the hardship of keeping him without a hearing for nearly two years, the 24th of June was appointed for the trial to take place in Westminster Hall. The Commons again met in committee to complete the evidence against him; but it was now found that Walpole, who was the chairman, and who had formerly pursued the inquiry with all eagerness, had suddenly cooled, and seldom came near the Committee; and they therefore appointed a new one. In fact, he and Townshend, out of opposition, were doing that secretly which they could not do openly without loss of characterthey were exerting themselves in favour of their old antagonist, and they soon hit on a scheme for bringing him off without any trial at all. The Lords were persuaded to listen to any evidence in support of the charge of[39] misdemeanour before they heard that on the grave charge of treason, and the result foreseen by the Opposition took place when the resolution was reported to the Commons. They immediately determined that it was an infringement of their privileges, and declined compliance with it. This was what Walpole and the then partisans, secret or open, of Lord Oxford, had foreseen. The Commons refusing to attend in Westminster Hall on the day fixed, the Lords returned to their own House, and passed a resolution declaring the Earl of Oxford acquitted, an announcement received by the people with acclamation. The Commons then demanded that Oxford should be excepted from the Act of Grace; but, notwithstanding, he was released from the Tower, and the Commons never renewed the impeachment.

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THU 14 May, 2015
FORE:When these letters were published in America, their real character was concealed, and every means taken to represent them as official despatches to the officers of Government in England. The public rage was uncontrollable. A committee was formed to wait on Governor Hutchinson, and demand whether he owned the handwriting. Hutchinson freely owned to that, but contended very justly that the letters were of a thoroughly private character, and to an unofficial person. Notwithstanding, the House of Assembly drew up a strong remonstrance to the British Government, charging the Governor and Lieutenant-Governor with giving false and malicious information respecting the colony, and demanding their dismissal. This remonstrance, accompanied by copies of the letters themselves, was immediately dispatched over the colonies, and everywhere produced, as was intended, the most violent inflammation of the public mind against us. The Bostonians had for some time established what was called a Corresponding Committee, whose business it was to prepare and circulate through the whole of the colonies papers calculated to keep alive the indignation against the British Government. This Committee quickly was responded to by other committees in different places, and soon this plan became an organisation extending to every part of the colonies, even the most remote, by which intelligence and arguments were circulated through all America with wonderful celerity.

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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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