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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."

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On the death of Stanhope, Sir Robert Walpole was left without a rival, and he received his commission of First Lord of the Treasury on the 2nd of April, and from this period down to 1742 he continued to direct the government of Great Britain. His chief anxiety now was to restore the public credit. He drew up, as Chairman of the Committee of the Commons, a report of all that had been lost in the late excitements, and of the measures that had been adopted to remedy the costs incurred. Amongst these were the resolutions of the House respecting the seven and a half millions the directors of the South Sea Company had agreed to pay to Government; more than five had been remitted, and we may add that on the clamorous complaints of the Company the remainder was afterwards remitted too. The forfeited estates had been made to clear off a large amount of encumbrance, the credit of the Company's bonds had been maintained, and thirty-three per cent. of the capital paid to the proprietors. Such were the[49] measures adopted by the Commons, and these being stated in the report to the king, a Bill was brought in embodying them all. Many of the proprietors, however, were not satisfied. They were very willing to forget their own folly and greediness, and charge the blame on the Government. On the second reading of Walpole's Bill they thronged the lobby of the House of Commons. The next day the Bill was carried, and gradually produced quiet; but Walpole himself did not escape without severe animadversions. He was accused of having framed his measures in collusion with the Bank, and with a clear eye to his own interest; but he had been strenuously vindicated from the charge, and on the whole the vigour and boldness with which he encountered the storm and quelled it deserve the highest praise, and may well cover a certain amount of self-interest, from which few Ministers are free.
FORE:Scotland, before the Reform Bill, was ruled by an oligarchy. The population was two millions and a half, the constituency was only 2,500. The power was to be taken from this small junto, and extended to the great middle class of that intelligent and loyal people. In Ireland, a host of rotten boroughs, some without any constituency at all, was to be swept away. The general result would be an increase for the United Kingdom of half a million electors, making the whole number enjoying the franchise 900,000. Of these 50,000 would be found in the new towns, created into Parliamentary boroughs in England, 110,000 additional electors in boroughs already returning members. For instance, London would have[331] 95,000; the English counties, 100,000; Scotland, 60,000; Ireland, 40,000. The House would consist in all of 596 members, being a reduction of sixty-two on the existing number of 658. The number of seats abolished was 168, which reduced the House to 490. Five additional members were given to Scotland, three to Ireland, one to Wales, eight to London, thirty-four to large English towns, and fifty-five to English counties.

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FORE:The British losses in the battle of Moodkee were very heavy215 killed; among whom were Sir Robert Sale, Sir John M'Caskill, and a number of young officers who had greatly distinguished themselves. The wounded amounted to 657. Meanwhile, the enemy, having left seventeen guns upon the field, retired in tolerably good order, within their entrenched camp, which they had formed at Ferozeshah, on the banks of the Sutlej, near Ferozepore. For two days both armies remained inactive, but ready to renew the conflict. The losses of the British had been made up by the arrival of the 29th Queen's and the 1st Bengal Light Infantry. A memorable event in the history of British warfare in India, was that Sir Henry Hardinge, the veteran commander, the hero of so many battles, the Governor-General of India, offered his services to Sir Hugh Gough as second in command. The offer was accepted, and the army marched forth to attack the enemy's camp. They started at daybreak on the 21st, and about midday a junction[598] was effected with General Littler's division, which had marched out from Ferozepore, according to orders sent the night before. The British army was now raised to 19,000 effective men. The enemy were double that number, strongly entrenched, well provisioned, and fresh after two days' rest; while our troops were ill provided with food, and had marched ten miles that morning. To attack the Sikhs without waiting for some expected reinforcements was hazardous; to postpone the attack for another day seemed still more soas there was a second Sikh army of equal force, which would then have reached the scene of action. An immediate attack was therefore determined uponGough leading the right wing, and Hardinge the left. The Sikh artillery was heavier than the British. The guns were protected behind embrasures, the gunners were sure in their aim; and so terrible was the effect that the 62nd Regiment, which led on the attack, was nearly cut away, and several Sepoy regiments broke and fled. The whole of the left wing, though led on gallantly by the Governor-General, were driven back, after carrying part of the works. The right wing, under General Gough, succeeded better, and held possession of several of the ramparts. But the Sikhs were still in possession of the fortified village of Ferozeshah, and remained so till night closed upon the scene; when the smoke and dust subsided, and the silence was broken only by an occasional shot from the guns, responded to in the darknessthe gunners seeing no enemy, but aiming at the flash of light.

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FORE:[269]Whilst this Bill was passing the Lords, on the 28th of March Lord Gower brought a fresh one into the Commons, which had no less object than the repeal of the Charter of Massachusetts. It was entitled, "A Bill for the Better Regulating Government in the Province of Massachusetts Bay." It went to remove the nomination of the members of the Council, of the judges and magistrates, etc., from the popular constituencies to the Crown. Lord North observed that the Charter of William III. had conferred these privileges on Massachusetts as exceptional to all other colonies, and that the consequence was that the Governor had no power whatever. Strong opposition was made to this proposed Bill by Dowdeswell, Sir George Savile, Burke, Barr, Governor Pownall, General Conway, and Charles Fox, who was now in opposition. The Bill passed the Commons by a majority of two hundred and thirty-nine against sixty-four; and it passed the Lords by a majority of ninety-two against twenty. But even now another Bill passed the House of Commonsa Bill for removing to another colony for trial any inhabitant of Massachusetts Bay, who was indicted for any murder or other capital offence which the Governor might deem to be perpetrated in the attempt to put down tumults and riots. This measure was still more vehemently opposed than the rest.

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FORE:The coarse manners of the gentlemen were gradually yielding to refining influences, but the society of ladies amongst the upper classes was generally neglected. Husbands spent their days in hunting or other masculine occupations, and their evenings in dining and drinking; the dinner party, which commenced at seven, not breaking up before one in the morning. Four- or five-, or even six-bottle men were not uncommon among the nobility. Lord Eldon and his brother Lord Stowell used to say that they had drunk more bad port than any two men in England. The Italian Opera was then the greatest attraction. It became[441] less exclusive in its arrangements when the Opera House was under the management of Mr. Waters; but the strictest etiquette was still kept up with regard to the dress of gentlemen, who were only admitted with knee-buckles, ruffles, and chapeaux bras. If there happened to be a Drawing Room, the ladies as well as the gentlemen would come to the opera in their Court dresses.
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The king's speech at the opening of Parliament, and the martial tone of the speeches by the members of both Houses, exceedingly exasperated Napoleon; for though preparing for war he was scarcely ready, and meant to have carried on the farce of peace a little longer. Talleyrand demanded of Lord Whitworth the reason of this ebullition of the British Parliament and of the Press. Lord Whitworth replied, as he had done regarding the comments on the trial of Peltier, that it was the direct result of the insulting articles in the Moniteur, which was known to be the organ of the French Government; whereas, in Britain, the Government had no direct control, either over the speeches in Parliament or over the press. Talleyrand and Whitworth again discussed all the vexed questions of the retention of Malta, the conduct of Colonel Sebastiani in the East, the aggressions of Napoleon in Italy, Germany, and Switzerland, in violation of the Treaty of Amiens; and Lord Whitworth declared that all Britain wanted was, that the Treaty should be faithfully carried out on both sides; that we were ready to evacuate Malta, and recall our complaints, on that being done. But this was what Napoleon was resolved never to do, and he therefore resorted to the most extraordinary insults to the British Ambassador. He requested Lord Whitworth to call at the Tuileries at nine o'clock in the evening of the day on which he had had his conference with Talleyrand. Napoleon had, by an assumption of extreme hauteur and impetuosity, frightened the Austrian Ambassador at Campo Formio, and he probably thought of frightening the British one; but Britain had not been beaten like Austria, and such a proceeding could only enrage the British people. In this interview, Buonaparte ran over, in a rapid and excited harangue of two hours' length, scarcely permitting Lord Whitworth to interpose a word of reply, all the alleged causes of dissatisfaction with England; at one moment threatening to invade it, if it cost him his life; at another, proposing that France and England should unite to rule the Continent, and offering to share with it all the benefits of such an alliance. Lord Whitworth replied, as before, that the British Government desired nothing but the bona fide execution of the Treaty of Amiens, and could not for a[488] moment entertain such schemes of aggression and domination as the First Consul proposed to her. He began to comment gravely on the aggressions in Switzerland and Italy, but Buonaparte cut him short angrily, saying those things were no business of his and that he had no right to talk of them. There was a fresh interview with Talleyrand, and fresh notes from him and Andreossi of the same character. A similar though more violent scene occurred at a levee on the 13th of March, in which Napoleon passionately accused Britain of driving France into war. A shrewd observer, Madame de Rmusat, was of opinion that his rage was simulated.NEW ORLEANS.
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