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The select committee of the Commons appointed at the instance of Lord Castlereagh, to inquire into the state of the national income and expenditure, now presented its report on the 3rd of June, and it was agreed to. The Chancellor of the Exchequer stated on its authority that, since 1815, taxation had been reduced eighteen million pounds per annum; that in 1816 the revenue of Great Britain and Ireland had been consolidated, and that, at that time, the interest of the Debt of Ireland, including the Sinking Fund provided for its reduction, exceeded the entire revenue of that part of the United Kingdom by one million nine hundred thousand pounds. He then announced that supplies for the present year would be required to the amount of twenty million five hundred thousand pounds; that the existing revenue would only furnish seven million pounds towards this; and that it would be necessary to have recourse to the Sinking Fund to make up the deficiency of thirteen million five hundred thousand pounds. This Sinking Fund was fifteen million five hundred thousand pounds, so that it would leave only two million pounds; but as it was necessary to have a tolerable surplus in hand to meet exigencies, it was proposed to raise this reserve fund to five million pounds by fresh taxes to the amount of three million pounds.On this basis Mr. Vansittart, the Chancellor of the Exchequer, on the 9th of June, produced his Budget. Including the interest on the Debt, the whole annual expenditure amounted to seventy-six million, seventy-four thousand poundsan ominous peace expenditure. Instead, therefore, of the supplies, aided by the draft from the Sinking Fund, leaving a surplus of two million pounds, a fresh loan of twelve million poundsbesides the three million pounds of new taxes on malt, tobacco, coffee, cocoa, tea, British spirits, pepper, and foreign wool was needed. By the hocus-pocus of Exchequer accounts this was made to look like a reduction of the Debt instead of an increase of it; but the country saw with dismay that three years after the peace the incubus of past war was still[145] adding to its burden. Mr. Tierney, on the 18th, moved for a committee to inquire into the state of the nation, but this was negatived by three hundred and fifty-seven votes against one hundred and seventy-eight; and a motion of Sir Henry Parnell on the 1st of July for extensive retrenchments was got rid of in the same manner.
FORE:While these things had been passing in England, the Revolution in France had been making great strides. The Assembly, after its removal to Paris, passed completely under the influence of the violent Jacobin Club, and the work of destruction and reconstitution proceeded with startling rapidity. By the division of France into Departments all the old territorial arrangements and provincial Assemblies were abolished; the judicial system was re-established on a popular basis, and its dependence on the Crown swept away; the Church was made a department of the State, and its vast property sold, chiefly by means of bills payable in Church lands and called assignats. The position of the king became well-nigh intolerable. There was a chance, indeed, that Mirabeau might extricate him from the toils of his enemies. That great man, now reconciled to the Court, advised him to withdraw from the capital, and throw himself upon the conservatism of the country districts. But the death of Mirabeau in April, 1791, deprived Louis of his only wise adviser, and in June he adopted the ill-judged course of flying from Paris, with the object of making his way across the frontier and joining the enemies of his country. The flight was ill-managed, the royal family were arrested at Varennes and brought back as prisoners to Paris, where they were placed under the strictest surveillance.

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FORE:France ceded Canada, Nova Scotia, and Cape Breton, stipulating for the free exercise of their religion by the inhabitants of Canada, and for their leaving the country if they preferred it, carrying away their effects, if done within eighteen months. Nova Scotia and Cape Breton were given up unconditionally. The boundaries of Louisiana were more clearly defined. The French retained the right to fish on part of the coast of Newfoundland and in the Gulf of St. Lawrence and to retain the two little islets of St. Pierre and Miquelon, as places of shelter for their fishermen, on condition that no batteries should be raised on them, nor more than fifty soldiers keep guard there. Their fishermen were not to approach within fifteen miles of Cape Breton.

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FORE:This was followed by a memorial, signed by most of the chief officers, including Lord George Murray, Lochiel, Keppoch, Clanranald, and Simon Fraser, Master of Lovat. This was sent by Lord George to Charles, and represented that so many men were gone home, and more still going, in spite of all the endeavours of their chiefs, that if the siege were continued they saw nothing but absolute destruction to the whole army. The prince sent Sir Thomas Sheridan to remonstrate with the chiefs, but they would not give way, and Charles, it is said, sullenly acquiesced in the retreat.

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FORE:Bernadotte took his time, and went. It was in[39] March. At Abo, in a solitary hut, he and Alexander met, and there the final ruin of Napoleon was sketched out by a master's handthat of his old companion in arms. Bernadotte knew all the strength and weakness of Napoleon; he had long watched the causes which would ultimately break up the wonderful career of his victories. He listened to the fears of Alexander, and bade him dismiss them. He told him that it was the timidity of his opponents which had given to Napoleon the victories of Austerlitz and Wagram; that, as regarded the present war, nothing could equal his infatuated blindness; that, treating the wishes of Poland with contempt, neglecting the palpably necessary measures of securing his flanks by the alliance of Turkey and Sweden, east and west, he was only rushing on suicide in the vast deserts five hundred miles from his frontiers; that all that was necessary on the part of Russia was to commence a war of devastation; to destroy all his resources, in the manner of the ancient Scythians and Parthians; to pursue him everywhere with a war of fanaticism and desolation; to admit of no peace till he was driven to the left bank of the Rhine, where the oppressed and vengeful nationalities would arise and annihilate him; that Napoleon, so brilliant and bold in attack, would show himself incapable of conducting a retreat of eight hoursa retreat would be the certain signal of his ruin. If he approached St. Petersburg, he engaged for himself to make a descent on France with fifty thousand men, and to call on both the Republican and constitutional parties to arise and liberate their country from the tyrant. Meanwhile, they must close the passage of the Beresina against him, when they would inevitably secure his person. They must then proclaim everywhere his death, and his whole dynasty would go to pieces with far greater rapidity than it grew.
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ATTACK ON THE CHINESE JUNKS. (See p. 474.)On the 6th of October Sir John Moore received instructions from Lord Castlereagh that his army was to advance into Spain, and co-operate with the Spanish armies for the expulsion of the French. He was informed that his twenty-five thousand men would receive a reinforcement of ten thousand men under Sir David Baird, who was on his voyage to Corunna. When Sir John prepared to march, the most serious difficulties presented themselves. Even at Lisbon it was found impossible to procure conveyance for the necessary baggage, and therefore the supplies of provisions and stores were cut down extremelya great mistake. There was one species of baggagewomen and childrenwho, according to the wretched practice of the time, were allowed to accompany the troops, and would not be left behind, though the army was going into immediate active service against the enemy. Sir John directed the commanding officers to order that as many as possible of these should stay behind, especially such women as had very young children, or infants at the breast, as there would not be found sufficient carts for them; and in the mountainous tracks at that season, and the horrible roads, they must suffer the most exhausting fatigues and hardships. But Sir John had not the commanding firmness of Wellesley, and his orders in this respect were, for the most part, neglected. Very proper orders were also issued by Sir John regarding the behaviour of the soldiers towards the natives. They were informed that the Spaniards were a grave and very proud people, readily offended by any disrespect towards their religion or customs; and the soldiers were desired to behave courteously, and to wear the cockade of King Ferdinand VII. as well as their own.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."
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