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A Commission had been appointed to inquire into the Department of Naval Affairs. The Commissioners, at whose head was Mr. Whitbread, had extended their researches so far back as to include the time when Lord Melville, as Mr. Dundas, had presided over that Department. They there discovered some very startling transactions. Large sums of money had been drawn out of the Bank of England on the plea of paying accounts due from the Naval Department; these sums had been paid into Coutts's Bank in the name of the Treasurer of the Navy, Mr. Trotter, who, for long periods together, used these sums for his own benefit. Other large sums had been drawn in the name of Dundas, and had been employed for his profit. Other sums had disappeared, and there was no account showing how they had vanished; but these were scored under the name of Secret Service Money, and Melville declared that the money paid into his account had gone in the same way. As much as forty-eight thousand pounds had been paid over to Pitt at once, and no account given of its expenditure. Indeed, as Pitt had nothing to do with that Department, the payment to him was altogether irregular. These discoveries created a great sensation. George Rose, who had begun life without a sixpence, but who, after attracting the attention of Pitt, had rapidly thriven and become extremely wealthy, had confessed to Wilberforce that some strange jobs had come under his notice as a member of that Department. There was a loud outcry for the impeachment of Melville. Melville appears to have been a jovial, hard-drinking Scotsman, of a somewhat infidel turn, according to Scottish philosophy of that period. Amongst Melville's faults, however, it does not appear that he was of an avaricious character, but rather of a loose morale, and ready to fall in with the licence practised by the officers of all departments of Government in the duties entrusted to them.

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[520]BENARES. (From a Photograph by Frith and Co.)
ONE:
These resolutions may be taken as expressing the feelings of the landed gentry as a body against the Melbourne Administration and the agitators. But the latter were not idle. O'Connell had then his "Precursor Association" in full operation. It received its name from the idea that it was to be the precursor of the repeal of the union. On the 22nd of January a public dinner was given in honour of the "Liberator" in a building then called the Circus, in Dublin, for which one thousand tickets were issued. Two days later a similar banquet was given to him in Drogheda, and there he made a significant allusion to the murder of Lord Norbury, insinuating that he had met his death at the hands of one who was bound to him by the nearest of natural ties, and had the strongest interest in his removal. Mr. O'Connell volunteered the assertion that the assassin of Lord Norbury had left on the soil where he had posted himself, "not the impress of a rustic brogue [a coarse rough shoe, usually made of half-dressed leather], but the impress of a well-made Dublin boot." There was no ground whatever for the malignant assertion, which was one of those errors of judgment and of taste that too often disfigured the great "Liberator's" leadership.Parliament was dissolved on the 30th of June, and at the general election the Ministerial party was smitten hip and thigh. The City of London exhibited a most remarkable defection from the Whigs on this occasion. It had returned four Liberals to the late Parliament, one of whom was Lord John Russell himself. On this occasion they returned two Conservatives and two Liberals; Mr. Masterman, a Conservative, being at the head of the poll. Lord John Russell was also returned, having beaten his Conservative opponent by a majority of only 7. Another significant triumph of the Conservatives was won in the West Riding of Yorkshire, one of the most Liberal constituencies in the kingdom. There Lord Morpeth and Lord Miltonthe candidates, of all others, most likely to succeedwere beaten, after a tremendous contest, by the Hon. S. Wortley and Mr. Denison. For Dublin, also, two Conservatives were returnedMessrs. West and Grogan; Mr. O'Connell being defeated. In England and Wales the Conservatives had a majority of 104. In Scotland the Liberals had a majority of 9, and in Ireland of 19. The majority in favour of the Conservatives in the United Kingdom was 76. The cries that had most to do in producing this result were, on the one side, "cheap bread," and on the other, "low wages."Lord Anglesey replied to these sharp rebukes with great spirit. "Up to this moment," he said, "I have been left entirely in ignorance, not only as to your intentions with regard to this country, but also as to your sentiments regarding my policy. They are now developed, and I shall know how to act." He then entered into details of all the occurrences alluded to, in order to show "how entirely his Majesty had been misinformed." Having done so, he added, "If those who arraign my conduct will obtain information from an uninterested source, I feel the most perfect confidence that I shall obtain the applause of my Sovereign, and the goodwill and good opinion of his Majesty's Ministers with whom I serve." He denied that the Government had lost its power, that the Association had usurped its functions, or that the laws were set at defiance. He asserted, on the contrary, that the law was in full vigour; and if it authorised, or expediency demanded, the suppression of the Catholic Association and of the Brunswick Clubs, and the disarming of the yeomanry at the same time, he would undertake to effect it almost without the loss of a life. But he did not think such a course expedient, and he deprecated the teasing system of attacking every minor offence, of which the issue upon trial would be doubtful, and which would produce irritation without effecting a salutary lesson and permanent good. He had no object, he said, in holding his post but that of pleasing his king and serving his country; and if, in his zealous and unwearied efforts to effect the latter object, he had incurred the displeasure of the king and lost his Majesty's confidence, he ought not to remain in Ireland. He was therefore ready to depart whenever they found it convenient to recall him. The Duke became testy under this resistance and antagonism. In replying to the last letter he becomes more personal in his accusations. "I might," said the Premier, "at an earlier period have expressed the pain I felt at the attendance of gentlemen of your household, and even of your family, at the Roman Catholic Association. I could not but feel that such attendance must expose your Government to misconstruction. I was silent because it was painful to mention such things; but I have always felt that if these impressions upon the king's mind should remainand I must say that recent transactions have given fresh cause for themI could not avoid mentioning them to you in a private communication, and to let you know the embarrassment which they occasion."He despatched a squadron of ten ships of the line to the Mediterranean, under Admiral Haddock; another strong squadron sailed for the West Indies; letters of marque and reprisal were issued to the merchants; and troops and stores were forwarded to Georgia, which the Spaniards had threatened to invade. He gave directions to all merchants in Spanish ports to register their goods with a public notary in case of a rupture. These measures produced a rapid change of tone at the Spanish Court. On comparing the demands on both sides for damages sustained in commerce, there appeared a balance in favour of England of two hundred thousand pounds. Against this, the Spaniards demanded sixty thousand pounds in compensation for the ships taken by Admiral Byng in 1718a claim which Stanhope would never allow, but which had been recognised in the Treaty of Seville, and was now, therefore, acknowledged. This reduced the sum to a hundred and forty thousand pounds, which the Spanish Court proposed should be paid by assignments on the American revenues. This, the Ministers were well aware, might involve the most endless delays and uncertainties, and they certainly showed a most conceding spirit by allowing a deduction of forty-five thousand pounds for prompt payment at Madrid. The sum was now reduced to ninety-five thousand pounds; and this being agreed to, a convention was signed on the 14th of January, 1739.
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