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THREE:The Scottish rebellion had been an auspicious circumstance for the arms of France. Marshal Saxe had taken the field, to the surprise of the Allies, in the very middle of winter, invested Brussels, and compelled it to surrender on the 20th of February, 1746. One town fell after another; Mons, Antwerp, Charleroi, and finally, Namur capitulated on the 19th of September, after a siege of only six days. As soon as Cumberland could leave Scotland after the battle of Culloden, he returned to London, in the hope that he should be appointed, covered, as he was, with his bloody laurels, to the supreme command of the Allied forces in Flanders, where he flattered himself he could arrest the progress of the French. But that command had been conferred on Prince Charles of Lorraine, the Emperor's brother, much to the disgust of both Cumberland and the king. On the 11th of October the Prince of Lorraine engaged the French at Raucoux, on the Jaar, and was signally defeated; the English cavalry, under General Ligonier, managing to save his army from total destruction, but not being able to stem the overthrow. At the close of the campaign the French remained almost entire masters of the Austrian Netherlands.The great difficulties of the Government at this time were the settlement of the questions with Spain of the right to cut logwood in the bay of Campeachy, and the retention of Gibraltar. The Spaniards had frequently resisted the cutting of logwood in the Bay of Campeachy by the English; and in 1717 the Marquis of Monteleone had presented a memorial against it; but the Board of Trade contended that the practice was of old standing, and amounted to a right. This representation was now laid before the House of Commons, and was backed by many petitions from the merchants of London and other places, complaining of the interruptions to their trade to the South American and West Indian colonies, which had been carried on by connivance rather than by actual permission of Spain. There was a great fermentation in the public mind on these subjects, and the Minister was accused of tamely submitting to national injuries. The nation seemed ready to rush into a war with Spain, and perhaps all the more so that the king, in his opening speech, had observed that "an actual war was preferable to such a doubtful peace, but that the exchange was very easy to be made at any time."

THREE:In the course of this commercial madness the imports greatly exceeded the exports, and there was consequently a rapid drain of specie from the country. The drain of bullion from the Bank of England was immense. In August, 1823, it had ��12,658,240, which in August, 1825, was reduced to ��3,634,320, and before the end of the year it ran as low as ��1,027,000. Between July, 1824, and August, 1825, twelve millions of cash were exported from Great Britain, chiefly to South America. During the Revolutionary war, which had lasted for fourteen years, the capital of the country had been completely exhausted, while all productive labour had been abandoned. The unworked mines were filled with water. They were accessible, it is true, to English speculators, but they were worked exclusively with English capital. The South American mining companies were so many conduits through which a rapid stream of gold flowed from Great Britain. The catastrophe that followed took the commercial world by surprise; even the Chancellor of the Exchequer failed to anticipate the disaster. On the contrary, his Budget of 1825 was based upon the most sanguine expectations for the future, and on the assurance that the public prosperity was the very reverse of what was ephemeral and peculiar, and that it arose from something inherent in the nation. Even at the prorogation of Parliament in July, the Royal Speech referred to the "great and growing" prosperity on which his Majesty had the happiness of congratulating the country at the beginning of the Session. The commercial crisis, however, with widespread ruin in its train, was fast coming upon Britain. Vast importations, intended to meet an undiminished demand at high prices, glutted all the markets, and caused prices to fall rapidly. Merchants sought accommodation from their bankers to meet pressing liabilities, that they might be enabled to hold over their goods till prices rallied. This accommodation the bankers were unable to afford, and sales were therefore effected at a ruinous loss. The South American mines, it was found, could not be worked at a profit, and they made no return for the twenty million pounds of British money which they had swallowed up. The effect was a sudden contraction of the currency, and a general stoppage of banking accommodation. The country banks, whose issues had risen to ��14,000,000, were run upon till their specie was exhausted, and many of them were obliged to stop payment. The Plymouth Bank was the first to fail, and in the next three weeks seventy banks followed in rapid succession. The London houses were besieged from morning to night by clamorous crowds, all demanding gold for their notes. Consternation spread through all classes. There was a universal pressure of creditors upon debtors, the banks that survived being themselves upon the edge of the precipice; and the Bank of England itself, pushed to the last extremity, peremptorily refused accommodation even to their best customers. Persons worth one hundred thousand pounds could not command one hundred pounds; money seemed to have taken to itself wings and fled away, reducing a state of society in the highest degree artificial almost to the condition of primitive barbarism, which led Mr. Huskisson to exclaim, "We were within twenty-four hours of barter."The Ministerial changes consequent on the death of Mr. Canning were announced on the 17th of August. Viscount Goderich, afterwards Earl of[261] Ripon, became the First Lord of the Treasury, the Duke of Portland President of the Council, Mr. Herries Chancellor of the Exchequer, Mr. Huskisson Colonial Secretary, and Mr. C. Grant President of the Board of Trade. On the 22nd the Duke of Wellington was gazetted as Commander-in-Chief. He accepted this office at the earnest request of the king, and it was universally felt that he was the fittest man for the post; but those who, with Lord Eldon, earnestly wished for the speedy downfall of the new Ministry��which they regarded as almost exclusively Canningite��lamented that he should have assumed that position which would necessarily paralyse his opposition in the House of Lords, and so far tend to keep in the Administration. There was, however, little chance of that, for perhaps no Cabinet was ever more divided. They intrigued man against man, section against section; and at last, without any external pressure, the Cabinet fell to pieces from its own weakness. Lord Goderich lost heart, and gave in his resignation before Parliament met. The king was at Windsor while the work of dissolution was going on. When it was complete, he said, "If they had not dissolved themselves by their own acts, I should have remained faithful to them to the last." They appeared before him on the 8th of January, 1828, to resign the offices which they had received from his hands. The Duke of Wellington was then sent for. It was not his wish to become Prime Minister of England. The reasons which had impelled him, on a former occasion, to resist the solicitations of his colleagues induced him now to remonstrate respectfully with the Sovereign; but the king would take no denial.