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THREE:The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight.Whilst these events had been taking place in Spain and Portugal, Great Britain had been sending money and troops to oppose Buonaparte in other quarters. Early in the spring Austria was in the field; in July a powerful fleet, carrying an army, sailed from the Downs, to create a diversion on the coast of the Netherlands, and other operations were commenced in the south of Italy. The army destined for the Netherlands amounted to forty thousand men, attended by a fleet of thirty-five sail of the line and twenty frigates, to assist where they might be needed. Buonaparte had contemplated making a great port of Antwerp, and had expended much money and labour in docks and fortifications there; but finding that the port of Antwerp was not deep enough for first-rate ships of war, he undertook to render Flushing capable of receiving and protecting a large fleet. He still contemplated, by the co-operation of Denmark and Russia, the sending forth a fleet, some day, which might cope with the British navy, or enable him to invade England. For this purpose he was building ships at Antwerp and Flushing; and it was, no doubt, these circumstances which determined the British to direct their attack on Flushing and Antwerp. Captain, afterwards Sir George Cockburn, was of opinion that these preparations of Napoleon could never affect England; that no possession of Zealand, or any part of it, could be kept by England, from its extreme unhealthiness to foreigners, and even to Dutchmen; and that it was much better for Britain to let Buonaparte build ships, and take them whenever they came out to sea, than to sacrifice the lives of our troops for no permanent benefit in this region of bogs, stagnant water, and malaria. Had these forty thousand troops been sent to support Wellington, and half the money that this fatal expedition cost, they would have enabled him to drive the French triumphantly out of Spain, and create the most magnificent diversion for Austria, as well as the most honourable to England.

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THREE:It was in these peculiar circumstances that the extraordinary measure was adopted of sending out a commission. The king, however, was furious at what he regarded as a breach of his prerogative. He told Sir George Grey, one of the Commission, in the presence of his Ministers, that he was to assert the prerogative of the Crown, which persons who ought to have known better had dared to deny, and that he was to recollect that Lower Canada had been conquered by the sword. A week later he favoured Lord Gosford with this[399] outburst��"By God I will never consent to alienate the Crown lands, nor to make the Council elective. Mind, my lord, the Cabinet is not my Cabinet. They had better take all, or by God I will have them impeached." As Lord Glenelg, the Colonial Secretary, was the person alluded to in the first sally, the Ministry drew up a strongly worded remonstrance which was read to the king by Lord Melbourne. But Lord Glenelg's instructions to Lord Gosford were toned down, and his mission was therefore foredoomed to failure. It was found that the sense of grievance and the complaints of bad government prevailed in both provinces, though of a different character in each. The habitants of the Lower Province complained of the preference shown by the Government to the British settlers and to the English language over the French. Englishmen, they said, monopolised the public offices, which they administered with the partiality and injustice of a dominant race. They complained also of the interference of the Government in elections, and of its unreasonable delay in considering or sanctioning the Bills passed by the Assembly. They insisted, moreover, that the Upper House, corresponding to the House of Peers, should be elective, instead of being appointed by the Crown and subject to its will. In the Upper Province the chief grounds of discontent arose from the want of due control over the public money and its expenditure. Many of the electors had gone out from Great Britain and Ireland during the Reform agitation, bearing with them strong convictions and excited feelings on the subject of popular rights, and they were not at all disposed to submit to monopoly in the colony of their adoption, after assisting to overthrow it in the mother country. Lord Gosford opened the Assembly in November, 1835, and in the course of his speech he said, "I have received the commands of our most gracious Sovereign to acquaint you that his Majesty is disposed to place under the control of the representatives of the people all public moneys payable to his Majesty or to his officers in this province, whether arising from taxes or from any other source. The accounts which will be submitted to your examination show the large arrears due as salaries to public officers and for the ordinary expenditure of the Government; and I earnestly request of you to pass such votes as may effect the liquidation of these arrears, and provide for the maintenance of the public servants, pending the inquiry by the Commissioners."

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