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TWO:Buonaparte determined to overwhelm both Spanish and British by numbers. He had poured above a hundred thousand men across the Pyrenees, and had supplied their places in France by two enormous conscriptions of eighty thousand men each. He now followed them with the rapidity of lightning. From Bayonne to Vittoria he made the journey on horseback in two days. He was already at Vittoria a week before the British army, under Sir John Moore, had commenced its march from Lisbon. It was his aim to destroy the Spanish armies before the British could come up��and he accomplished it. The Spanish generals had no concert between themselves, yet they had all been advancing northward to attack the French on different parts of the Ebro, or in the country beyond it. It was the first object of Napoleon to annihilate the army of Blake, which occupied the right of the French army in the provinces of Biscay and Guipuzcoa. Blake was attacked by General Lefebvre on the last of October, on ground very favourable to the Spaniards, being mountainous, and thus not allowing the French to use much artillery; but, after a short fight of three hours, he was compelled to fall back, and for nine days he continued his retreat through the rugged mountains of Biscay, with his army suffering incredibly from cold, hunger, drenching rains, and fatigue. There was said to be scarcely a shoe or a greatcoat in the whole force. Having reached Espinosa de los Monteros, he hoped to rest and recruit his troops, but Lefebvre was upon him, and he was again defeated. He next made for Reynosa, a strong position, where he hoped to recollect his scattered army; but there he received the news of the[567] defeat of Belvedere, from whom he hoped for support. The French were again upon and surrounding him, and he was compelled to order his army to save themselves by dispersing amongst the mountains of Asturias, whilst himself and some of his officers escaped, and got on board a British vessel.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.

THREE:

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FORE:On the 9th of June, when the House of Commons went into committee on the Bill, a large number of merchants desired to be heard against it. For several days their statements were heard, and the Portuguese Ambassador also presented a memorial declaring that should the duties on French wines be lowered to those of Portugal, his master would renew the woollen and other duties on the products of Great Britain. This seemed to enforce the mercantile opinions; the sense of the whole country was against the treaty, and the speech of Sir Thomas Hanmer, a Tory, made a deep impression. There was, however, a growing rumour, during the latter days of the debate, that Oxford had given the treaty up��a rumour probably not without foundation, for Oxford and Bolingbroke were no longer in unity. The latter, ambitious and unprincipled, was intriguing to oust his more slow and dilatory colleague; and, as the Bill was ostensibly the work of Bolingbroke, probably Oxford was by no means unwilling that it should be thrown out to damage him. When the question, therefore, was put on the 18th of June,[11] that the Bill be engrossed, it was negatived by a majority of one hundred and ninety-four to one hundred and eighty-five. Thus the commercial treaty was lost, much to the joy of the nation, and certainly to its immediate benefit.Whilst these movements had been progressing, very different ones had been in development in the north. The British Government, with the fatality which distinguished nearly all its counsels in this war, had thought proper to take the command of the army destined to operate by way of Canada on the northern colonies, from Sir Guy Carleton, and to confer it on General Burgoyne. The campaign had been planned��not by experienced military men on the spot, capable of estimating the difficulties of the enterprise, but in the Cabinet at home, directed by defective maps, and still more defective information.

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FORE:The war was scarcely begun when it was discovered that we had proclaimed hostilities much before we were prepared to carry them out. Our ships were badly manned, and therefore slow to put to sea, and the more alert Spaniards were busy picking up our merchant vessels. Not they only, but the French, Dutch, and other nations who had hoisted Spanish colours, were making wide devastation amongst our trading vessels. Walpole was compelled to issue letters of marque and licences to swarms of privateers, which issued forth to make reprisals. The Lords of the Admiralty, on the 1st of February, 1740, had ordered an embargo on all shipping except coasters, so as at once to keep them out of reach of the enemy, and to induce seamen to enter the navy; but on the 28th of March a petition from merchants and owners of shipping was presented, complaining of the hardships and the destruction of trade by it. The Lords of the Admiralty contended that such had been the complaints of injuries done at sea to our traders, that they had been compelled to impose the embargo in the absence of sufficient hands for men-of-war. They now took the embargo off foreign ships, and gave notice to English owners that they would take it off altogether, on condition that the owners and masters of vessels would enter into an engagement to furnish a certain number of men to the navy in proportion to the number of hands in each trader. This also was denounced as a most oppressive measure, and the Opposition represented it as intended to make the mercantile community sick of the war. Driven, however, to extremities, Ministers would not listen to these arguments; a motion was carried sanctioning this plan, and then the merchants came into it.

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