FORE:"Why?" she asked, with a quick suspicion of the dreariness she caught in his tone.Chapter 25
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FORE: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.
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FORE:Events now rushed on with accumulating force and accelerated pace. There had been a long drought, withering up the prospects of the harvest, and now, in July, came a terrible hailstorm, which extended one hundred and fifty miles round Paris, destroying the nearly ripe corn, the fruit on the trees, and leaving all that extent of country a desert, and the inhabitants the prey of famine. In such circumstances the people could not, those in other quarters would not, pay taxes; the Treasury was empty, and the king was compelled to promise to convoke the States General in the following May; Brienne endeavoured to amuse the active reformers by calling on men of intelligence to send in plans for the proper conduct of the States General, as none had been held for one hundred and seventy-two years. The public was impatient for a much earlier summons, but probably they would not have been much listened to, had Lomnie de Brienne known how to keep things going. His empty exchequer, however, and the pressing demands upon him, drove him to solicit the king to recall Necker and appoint him once more Comptroller of the Finances. He imagined that the popularity of Necker would at least extend the public patience. The queen energetically opposed the reinstatement of Necker; the position of affairs was, however, too desperate, and Necker was recalled. His triumphant return was speedily followed by the meeting of the States.
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