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ONE:[See larger version] TWO:This insult roused the fiery blood of Spain. The king and queen were excited to paroxysms of rage. They told Mr. William Stanhope that, in future, they would put confidence in no prince except his master, nor admit any one else to mediate for them in their negotiations. But George refused to break with France on their account, and ventured to remind Philip that he himself stood greatly in need of the alliance with France. Blinded, however, by their wounded pride, the King and Queen of Spain now turned their anger against England. They recalled their plenipotentiaries from the Congress of Cambray, which was sitting to settle the affairs of Europe, and professed their readiness to abandon all their hostility to the Emperor of Germany, and to concede all that they had so long demanded from him, on condition that he entered into a close alliance with them against France and England. They sent back to France the widow of the late Don Louis, and also Mademoiselle Beaujolais, another daughter of the late Regent Orleans, who had been contracted to Don Carlos.[438]
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ONE: TWO:[See larger version]During the months of April and May Florence and all the other towns of Tuscany recovered from the revolutionary fever, and returned to their allegiance. At Bologna the Austrians met with a determined resistance. The garrison consisted of 3,000 men, including some hundreds of the Swiss Guards, who had abandoned the service of the Pope. They defied the Austrians, stating that the Madonna was all for resistance, and was actively engaged in turning aside the rockets of the enemy. But the heavy artillery did its deadly work notwithstanding; and after a short bombardment the white flag was hung out, the city capitulated, and the garrison laid down their arms, but were permitted to march out unmolested. Ancona also capitulated on the 10th, and Ferrara was occupied without resistance by Count Thurn. In fact, the counter-revolution was successful all over Central Italy, except in the Papal States, which now became the centre of universal interest. The leaders of the revolutionary party, chased from the other cities of Italy, were warmly welcomed at Rome, and gladly entered the ranks of its defenders.
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ONE:In concluding the remarkable events of this year, we must turn to India, and witness the termination of the career of Tippoo Sahib. This prince, for ever restless under the losses which he had suffered from the British, though nominally at peace with them, was seeking alliances to help him once more to contend with them. He sought to engage the Afghans in his favour, and to bring over the British ally, the Nizam of the Deccan. Failing in this, he made overtures to the French Republic through the Governor of the Isle of France. Buonaparte, as we have said, had Tippoo in his mind when he proposed to march to India and conquer it, but only a few hundreds of French of the lowest caste reached Seringapatam from the Isle of France. Lord Mornington, afterwards the Marquis of Wellesley, determined to anticipate the plans of Tippoo, and dispatched General Harris with twenty-four thousand men into Mysore, at the same time ordering another force of seven thousand, under General Stuart, from Bombay, to co-operate with him. To these also was added a strong reinforcement of British troops in the pay of the Nizam, and some regiments of sepoys, commanded by English officers. The united forces of Harris and the Nizam came into conflict with Tippoo's army on the 22nd of March, 1799, when within two days' march of Seringapatam. In this action, Colonel Wellesley, afterwards the Duke of Wellington, greatly distinguished himself, and the success of the action was ascribed to his regiment, the 34th. On the 5th of April General Harris invested Seringapatam, and on the 14th General Stuart arrived with the Bombay army. Tippoo soon made very humble overtures for peace, but the British, having no faith in him, continued the siege, and the city was carried by storm on the 4th of May, and Tippoo himself was found amongst the slain. Two of his sons fell into the hands of the victors; his territories were divided between the British and the Nizam. The former retained Seringapatam and the island on which it is situated, and the whole of his territory on the Malabar coast, with Coimbra, and all the rest of his possessions stretching to the Company's territories west and east, thus completing their dominion from sea to sea. The Nizam received equally valuable regions in the interior, and a province was bestowed on the descendant of the Hindoo rajah who had been dispossessed of it by Hyder Ali, Tippoo's father. Thus was the British empire of India freed from its most formidable enemy, and thus was it enabled, soon afterwards, to send an armament up the Red Sea to assist in driving the French from Egypt. TWO:
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ONE: TWO:Nelson, having blockaded the port of Alexandria, sailed to Naples to repair. There he received the news of the intense rejoicing his victory had spread through England, and that he was raised to the peerage by the title of Baron Nelson of the Nile. He found Ferdinand of Naples already collecting an army to drive the French from Rome and Tuscany. Austria, Switzerland, and other countries were again in arms. The Treaty of Campo Formio was at an end by the French violation of it everywhere, and as it was supposed that Buonaparte would never be allowed to get back again, the spirit of Europe had revived. Nelson, allowing himself as little repose as possible, in November had made himself master of the Island of Gozo, separated only by a narrow channel from Malta. He had blockaded Malta itself, and it must soon surrender. Pitt, elated by Nelson's success, and in consequence of the death of the old czarina, Catherine, some two years earlier, now entered into a treaty with her successor, Paul, who was subsidised by a hundred and twelve thousand pounds a month, and great expectations were raised of the effect of his victorious general, Suvaroff, leading an army into Italy. The other members of the second grand coalition were Austria, the Princes of Germany, and the Ottoman Empire. Prussia weakly held aloof. When the British Parliament met on the 20th of November, the late victory and this new alliance with Russia were the themes of congratulation from the throne. Twenty-nine million two hundred and seventy-two thousand pounds were granted with alacrity for the ensuing year, and the nation willingly submitted to the imposition of a new impost��the income tax.
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THREE:[61]His terms were rejected with disdain. Yet he had a last interview with Metternich, in which he hoped to terrify him by a dread of the future preponderance of Russia; but, seeing that it made no impression, he became incensed, and adopted a very insolent tone towards the Austrian Minister. "Well, Metternich," he demanded, "how much has England given you to induce you to play this part towards me?" Metternich received the insult in haughty silence. Buonaparte, to try how far the diplomatist still would preserve his deference towards him, let his hat fall: Metternich let it lie. This was a sign that the Austrian had taken his part; it was, in fact, the signal of war. Yet, at the last moment, Napoleon suddenly assumed a tone of conciliation, and offered very large concessions. He had heard the news of the defeat of Vittoria. But it was too late. The Congress terminated on the 10th of August, and the Allies refused to re-open it. On the 12th of August, two days after the termination of the armistice, Austria declared herself on the side of the Allies, and brought two hundred thousand men to swell their ranks. This redoubtable force was commanded by her general, Prince von Schwarzenberg.

FORE:The inhabitants, men, women, and children, fled in terror from their splendid villas, around the city, into the fort of St. George. A fast-sailing vessel was dispatched to Calcutta, to implore the Governor-General to send them speedy aid of men and money. The forces were called together from different quarters, and Sir Hector Munro at the head of one body, and Colonel Baillie at the head of another, were ordered to combine, and intercept Hyder. First one place of rendezvous and then another was named, but, before the junction could take place, Baillie had managed to allow himself to be surrounded by the whole host of Hyder, and after a brave defence was compelled to surrender, one half of his troops being cut to pieces. The insults and cruelties of the troops of Hyder to their captives were something demoniac. Munro had sent to demand troops from the Nabob of Arcot, for whom the British were always fighting, and received a message of compliments, but no soldiers. On the defeat of Baillie he made a hasty retreat to Mount St. Thomas. Meanwhile, the call for aid had reached Calcutta, and Hastings instantly responded to it with all his indomitable energy. He called together the Council, and demanded that peace should be made at once with the Mahrattas; that every soldier should be shipped off at once to Madras; that fifteen lacs of rupees should be sent without a moment's delay to the Council there; that the incompetent governor, Whitehill, should be removed; and Sir Eyre Coote sent to perform this necessary office, and take the command of the troops. Francis, who was just departing for England, raised as usual his voice in opposition. But Hastings' proposals were all carried. The troops, under Sir Eyre Coote, were hurried off, and messengers dispatched in flying haste to raise money at Moorshedabad, Patna, Benares, Lucknow��in short, wherever the authority of Hastings could extort it. At the same time, other officers were sent to negotiate with the Mahrattas for peace.

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FORE:THACKWELL AT SOBRAON. (See p. 599.)

FORE:ASSASSINATION OF SPENCER PERCEVAL. (See p. 23.)Such being the facts of the case, the Liberals came to the conclusion that a reform was inevitable. In order to adapt the Establishment to the requirements of the Protestant population, there must be a large reduction, and the surplus funds that remained ought to be applied to some object by which the moral and religious instruction of the people would be promoted. The least objectionable mode in which the money could be applied was the general education of the poor under the National Board, by which children of all denominations could be educated in harmony together, as they had been ever since its establishment. The reformers denied that there was any analogy between the revenues of the Established Church and private property. The Acts of Parliament securing those revenues had all treated them as being held in trust for the benefit of the nation; and after leaving ample means for the due execution of the trust, so far as it was really practicable, the Legislature was competent to apply the balance in accomplishing by other agency than the Protestant clergy, to some extent at least, the objects originally contemplated by the founders of the religious endowments.

THREE:The depth of Walpole's mortification, however, was shown by the vengeance he took on those who had opposed him. This fell with peculiar weight on Lord Chesterfield. Chesterfield had acquired a great reputation by his able management of affairs at the Hague. Since his return he had become Lord Steward of the Household, and a frequent and much admired debater in the House. But Chesterfield was too ambitious himself to stoop patiently to the domineering temper of Walpole. He was said to have thrown out some keen sarcasms at Walpole's Excise Bill, and his three brothers in the Commons voted against it. Only two days after the abandonment of the Bill, as Chesterfield was ascending the staircase at St. James's, he was stopped by an attendant, and summoned home to surrender the White Staff. The same punishment was dealt out to a number of noblemen who acted in concert with him. Lord Clinton, a Lord of the Bedchamber, the Earl of Burlington, Captain of the Band of Pensioners,[64] were dismissed, as well as the Duke of Montrose, and the Earls of Marchmont and Stair from offices held in Scotland. The Duke of Bolton and Lord Cobham were, by a most unjustifiable stretch of authority, deprived of their regiments.To these, in 1785, the Rev. Dr. Edmund Cartwright introduced a loom for weaving by water or steam power, which soon superseded hand-loom weaving. In 1803 Mr. H. Horrocks greatly improved this, and from this germ has grown up the system of weaving cottons, silks, and woollens by machinery. Add to this the application of similar machinery to calico-printing, and the like to weaving of lace, invented by Robert Frost, of Nottingham, or by a working mechanic of that town named Holmes, which afterwards received many improvements, and we have the varied means by which the manufacturing power of England was raised far above that of all the world; and which, reaching other countries in spite of legislative impediments, soon established similar manufactures in France, Belgium, Germany, Switzerland, and America. In Great Britain alone the importation of raw cotton was increased from 4,764,589 lbs. in 1771 to 151,000,000 lbs. in 1818; and such was the spread of trade of all kinds from the use of machinery, that our exports of manufactured goods in 1800, when the European nations were incapacitated for manufacturing by Napoleon's general embargo, amounted to ��116,000,000.

FORE:In 1831 the number of churches and chapels of the Church of England amounted to 11,825; the number in 1851, as returned to the census officer, was 13,854, exclusive of 223 described as being "not separate buildings," or as "used also for secular purposes," thus showing an increase in the course of twenty years, of more than 2,000 churches. Probably the increase was, in reality, still larger, as it can hardly be expected that the returns were altogether perfect. The greater portion of this increase is attributable to the self-extending power of the Church��the State not having in the twenty years contributed, in aid of private benefactions, more than ��511,385 towards the erection of 386 churches. If we assume the average cost of each new edifice to be about ��3,000, the total sum expended in this interval (exclusive of considerable sums devoted to the restoration of old churches) will be ��6,087,000. The chief addition occurred, as was to be expected and desired, in thickly peopled districts, where the rapid increase of inhabitants rendered such additional accommodation most essential. In the ten years between 1821 and 1831 there was an addition of 276 churches; from 1831 to 1841, 667 were added. Taking the Nonconformist communities, we find the statistics of the progress of the Independents, or Congregationalists, to be scarcely less remarkable than those of the Established Church. The earliest account of the number of Independent congregations refers to 1812. Before that period Independent and Presbyterian congregations were returned together. At that time the number of Independent churches in England and Wales was a little over 1,000. In 1838 the churches had increased to 1,840, and the census of 1851 made the number 3,244, of which 640 were in Wales. These places of worship furnished sittings for 1,063,000 persons.O'Connell also wielded against the Government the fierce democracy of Roman Catholic Ireland. Sir Robert Peel had irritated him by some contemptuous remarks on his Repeal agitation, and he rose in his own defence, like a lion in his fury. He proceeded to give a description of the condition of Ireland, "which," said Mr. Brougham, "if not magnified in its proportions, if not painted in exaggerated colours, presents to my mind one of the most dismal, melancholy, and alarming conditions of society ever heard of or recorded in any State of the civilised world." Mr. O'Connell thus addressed the Treasury bench:��"Tell the people of Ireland that you have no sympathy with their sufferings, that their advocate is greeted with sneers and laughter, that he is an outlaw in the land, and that he is taunted with want of courage, because he is afraid of offending his God. Tell them this, and let them hear also in what language the Secretary of State, who issued the proclamation to prevent meetings in Ireland, has spoken of Polignac." A powerful defence of his system of peaceful agitation, and a fierce defiance and denunciation of the existing Administration, closed this remarkable speech, whose effect upon the House, Mr. Roebuck said, was great and unexpected. Its effect upon the Roman Catholics of Ireland, it need not be added, was immense.

FORE:The changes in furniture were not remarkable. During the French war a rage for furniture on the classic model had taken place; but on the return of peace Paris fashions were restored. Rosewood superseded mahogany, and a more easy and luxurious style of sofa and couch was adopted. There came also Pembroke tables, Argand lamps, register stoves, Venetian and spring blinds, a variety of ladies' work-tables and whatnots; and a more tasteful disposition of curtains and ornamental articles purchased on the Continent.

FORE:Numbers of persons fled from the different towns to the frontiers of Holland, trade became stagnant, manufactories stood empty; the whole country began to assume a melancholy and ruinous aspect. Many of the refugees, formed into revolutionary clubs by French emissaries, were prepared not merely to oppose Joseph's despotism, but all monarchical government whatever. A powerful body of these placed themselves under the leadership of Van der Noot, a lawyer, who assumed the title of plenipotentiary agent of the people of Brabant; and of Van der Mersch, an officer who had served in the Seven Years' War, who was made their commander-in-chief. These two men were in league with the new Assembly of Breda, and issued their proclamations. These Trautmansdorff caused to be burnt by the executioner. The patriots in Brussels who sympathised with those in arms were, many of them, arrested; the citizens were disarmed, the fortifications strengthened by palisades, and every means of defence was resorted to.

THREE:General Evans had taken the command of the Spanish Legion, which throughout the whole of the campaign was encompassed with difficulties and pursued by disasters, without any military success sufficiently brilliant to gild the clouds with glory. Within a fortnight after the debate on Lord Mahon's motion came the news of its utter defeat before Hernani. This defeat encouraged the opponents of Lord Palmerston's policy to renew their attacks. Accordingly, immediately after the recess, Sir Henry Hardinge brought forward a motion on the subject. He complained that no adequate provision was made for the support of those who were in the Legion. At Vittoria they were placed for four months in uninhabited convents, without bedding, fuel, or supplies of any kind. Not less than 40 officers and 700 men fell victims to their privations. The worst consequence was, however, the total demoralisation of the troops. Theirs was not honourable war, it was butchery. They were massacring a fine and independent people, who had committed no offence against Britain. Ill treatment, want of food and of clothing, habits of insubordination and mutiny, and want of confidence in their officers, had produced their natural effects. Let them palliate the disaster as they would, there was no doubt, he said, of the fact that a large body of Britons had suffered a defeat such as he believed no British soldiers had undergone in the course of the last five or six hundred years. The motion was defeated by 70 votes to 62, but as the Legion was dissolved in the following year, 1838, the object of the Opposition was gained.

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THREE:

FORE:The remnant of the Mahratta army fled northwards, pursued and continually reduced by the British. At the same time the reduction of the towns and forts was steadily going on, and every day the fugitive Peishwa became more and more involved in the toils of his enemies. He endeavoured to escape into Nagpore, but on the banks of the Wurda he was met, on the 1st of April, by Colonel Scott and driven back, only to fall into the hands of Colonel Adams, who attacked him near Soonee with only one regiment of native cavalry and some horse artillery, and gave him a thorough defeat, taking five guns, three elephants, and two hundred camels. More than a thousand Mahrattas fell, and the Peishwa himself narrowly escaped, his palanquin, which he had abandoned, being found shot through. Bajee Rao now endeavoured to get to the north-east into Malwa, but he was stopped by General Sir Thomas Hislop, who was advancing from that quarter towards the Deccan. At length, his forces dispersed, his towns in possession of the British, his way on all sides cut off, the Peishwa came in and surrendered himself to Sir John Malcolm, on the 3rd of June, 1818, on promise of good treatment. Sir John granted him eight lacs of rupees per annum, on condition that he resigned the title of Peishwa for ever, and surrendered all his possessions. This was confirmed by the Supreme Government at Calcutta. Thus was the existence of the Pindarrees, and the power of the Mahrattas, broken up, and the Rajah of Satara restored. He was a minor, but on reaching the age of twenty-one, which was in the year 1821, he was invested with the government of his dominions. These included a district of about eleven thousand square miles, and produced a net revenue of fifteen million rupees. Out of this, however, three lacs per annum were reserved for chiefs who had become subjects of the Company, and three more lacs were alienated. As for Trimbukjee, whose crimes and murders had determined the British to secure him at any cost, he was discovered, after a long quest, in the neighbourhood of Nassick, by Captain Swanston, and carried to Tannah, the prison from which he had escaped. He was thence transferred to Calcutta, and finally to the rock of Chunar, near Benares. The last success of this war was the reduction of the fortress of Aseerghur, one of the most formidable strongholds in India, which had undergone some most arduous sieges.Parliament met on the 10th of January, 1765. The resentment of the Americans had reached the ears of the Ministry and the king, yet both continued determined to proceed. In the interviews which Franklin and the other agents had with the Ministers, Grenville begged them to point to any other tax that would be more agreeable to the colonists than the stamp-duty; but they without any real legal grounds drew the line between levying custom and imposing an inland tax. Grenville paid no attention to these representations. Fifty-five resolutions, prepared by a committee of ways and means, were laid by him on the table of the House of Commons at an early day of the Session, imposing on America nearly the same stamp-duties as were already in practical operation in England. These resolutions being adopted, were embodied in a bill; and when it was introduced to the House, it was received with an apathy which betrayed on all hands the profoundest ignorance of its importance. Burke, who was a spectator of the debates in both Houses, in a speech some years afterwards, stated that he never heard a more languid debate than that in the Commons. Only two or three persons spoke against the measure and that with great composure. There was but one division in the whole progress of the Bill, and the minority did not reach to more than thirty-nine or forty. In the Lords, he said, there was, to the best of his recollection, neither division nor debate! _$199_/Month

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FORE:Various inquiries had been instituted from time to time by royal commissions and Parliamentary committees into the state of education in Ireland. One commission, appointed in 1806, laboured for six years, and published fourteen reports. It included the Primate, two bishops, the Provost of Trinity College, and Mr. R. Lovell Edgeworth. They recommended a system in which the children of all denominations should be educated together, without interfering with the peculiar tenets of any; and that there should be a Board of Commissioners, with extensive powers, to carry out the plan. Subsequent commissions and committees adopted the same principle of united secular education, particularly a select committee of the House of Commons appointed in 1824. These important reports prepared the way for Mr. Stanley's plan, which he announced in the House of Commons in July, 1832. His speech on that occasion showed that he had thoroughly mastered the difficult question which he undertook to elucidate. It was remarkable for the clearness of its statements, the power of its arguments, and for the eloquence with which it enforced sound and comprehensive principles. Mr. Spring-Rice having moved that a sum of ��30,000 be granted for enabling the Lord-Lieutenant of Ireland to assist in the education of the people, and the House having agreed to the motion without a division, Mr. Stanley, in the following month, wrote a letter to the Duke of Leinster, in which he explained "the plan of national education," which afterwards bore his name. The first Commissioners were the Duke of Leinster, Archbishop Whately, Archbishop Murray, the Rev. Dr. Sadleir, Rev. James Carlile (Presbyterian), A. R. Blake (Chief Remembrancer, a Roman Catholic), and Robert Holmes, a Unitarian barrister. Mr. Carlile, minister of Mary's Abbey congregation in Dublin, was the only paid commissioner, and to him, during seven years, was committed a principal share in working the system. He selected the Scripture lessons, directed the compilation of the schoolbooks, aided in obtaining the recognition of parental rights, apart from clerical authority; in arranging the machinery and putting it in working order. _$199_/Month

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FORE:FATHER MATHEW.The French, exasperated beyond further endurance, on the 22nd of November entered on the question of war in the Assembly in earnest. Koch, of Strasburg, the well-known historian, declared that no time was to be lost; that the German nations were every day violating the frontiers of France, and that the Minister for Foreign Affairs was not to be trusted. Three armies were formed. Rochambeau, who was now ailing, and out of humour, was appointed to that stationed in Flanders, and called the army of the north; Lafayette was put in command of the central division stationed at Metz, and Luckner of the one stationed in Alsace. Narbonne, the new Minister, made a rapid journey, and returning, announced to the Assembly that the different fortresses were fast assuming a creditable condition, and that the army, from Dunkirk to Besan?on, presented a mass of two hundred and forty battalions, one hundred and sixty squadrons, with artillery requisite for two hundred thousand men, and supplies for six months. This report was received with acclamations. So closed the year 1791. _$199_/Month

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THREE:Napoleon, reinforced by a number of French, Bavarian, Würtemberg, and Saxon troops, moved off to attack the Allies at Bautzen, on the 19th of May. He had detached Lauriston and Ney towards Berlin to rout Bülow, but they were stopped by Barclay de Tolly and Yorck at K?nigswartha and at Weissig, and compelled to retreat. On the 21st Ney combined with Napoleon, and they made a united attack on Blucher's position on the fortified heights of Klein and Klein-Bautzen. In this battle German fought against German, the Bavarians against Bavarians, for they took both sides, such was the dislocated state of the nation. It was not till after a long and desperately-fought battle that the Allies were compelled to give ground, and then they retired, without the loss of a single gun, and posted themselves strongly behind the fortress of Schweidnitz, so famous in the campaigns of Frederick of Prussia.Mr. Roebuck, the next day, moved a counter-resolution in the following terms:��"That the principles which have hitherto regulated the foreign policy of her Majesty's Government are such as were required to preserve untarnished the honour and dignity of this country, and, in times of unexampled difficulty, the best calculated to maintain peace between England and the various nations of the world." He supported this position in an able and lengthened speech. The chief ground of dispute was the demand of Palmerston for compensation to a person named Don Pacifico, a Jew, and by birth a British subject, who resided at Athens, and whose house had been attacked on a Sunday, his property destroyed, and his family beaten by a mob headed by young noblemen. The Greek Government refused him reparation, and he sought protection from England. There was also the case of Mr. Finlay, whose land was seized in order that it might be converted into a garden for the King of Greece, the owner being refused payment; Lord Aberdeen, when Foreign Secretary, having applied in vain for redress. There was also the case of H.M.S. Fant?me, whose boat's crew had been arrested by Greek soldiers; also other outrages equally serious. Lord Palmerston defended his policy with his wonted spirit and ability, and with triumphant success in a speech which, said Mr. Gladstone, lasted "from the dusk of one day to the dawn of another." Mr. Gladstone arraigned the conduct of the first Minister in sitting down contentedly under the censure of the House of Lords, by sheltering himself under precedents which were in fact no precedents at all. He charged Lord Palmerston with violating international law, by making reprisals upon Greek property to the extent of ��80,000 to satisfy the exorbitant demands of Don Pacifico; the fruit of this policy being humiliation, in regard to France, and a lesson received without reply from the autocrat of all the Russia's. Mr. Cobden also assailed the policy of Lord Palmerston, and asked if there was no other way of settling such trifling matters than by sending fifteen ships of war into Greek waters, which had seized several gunboats, and more than forty merchantmen. Lord John Russell defended the policy of the Government, and concluded by declaring that by the verdict of that House and the people of England he was prepared to abide, fully convinced that the Government had preserved at the same time the honour of the country and the blessings of peace. Mr. Disraeli, on the other hand, maintained that the House of Lords had exercised a solemn duty in pronouncing a censure upon the policy which had led to such terrible results. This debate will[607] be rendered for ever memorable in our annals by the speech of Sir Robert Peel. It was one of the best speeches he ever delivered in that House, and it was his last. He argued strongly against intermeddling with the affairs of foreign nations in order to procure for them free institutions, and concluded with the expression of his belief that the cause of constitutional liberty would only be encumbered by our help; whilst by intruding it we should involve Great Britain in incalculable difficulties. When the hour for the division came the House was very full��Ayes��310; Noes, 264; giving the Government a majority of 46.

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THREE:It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to do��causes that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discovery��a box containing ��700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from ��17,477,290 to ��25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds.

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