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FORE:The distress which had pressed so severely on the people, and which had set them thinking about the most perilous political changes, was intimately connected with the state of the country. Throughout the troubled period of almost incessant war and lavish expenditure between 1797 and 1815, the business of the nation was carried on with an inconvertible paper currency, the precious metals having nearly all departed from the country. Bank notes were issued in such quantities, to meet the exigencies of the Government, that the prices of all commodities were nearly doubled. The Bill which was passed in 1819 providing for the resumption of cash payments had reduced the currency from ��48,278,070, which was its amount in 1819, to ��26,588,000, in 1822. The consequence was the reduction of prices in the meantime, at the rate of fifty per cent., in all the articles of production and commerce. With this tremendous fall of prices, the amount of liabilities remained unchanged; rents, taxes, and encumbrances were to be paid according to the letter of the contract, while the produce and commodities��the sale of which was relied upon to pay them��did not produce more than half the amount that they would have brought at the time of the contracts. The evil of this sudden change was aggravated by the South American Revolution, in consequence of which the annual supply of the precious metals was reduced to a third of its former amount. It was peculiarly unfortunate that this stoppage in the supply of gold and silver occurred at the very time that the Legislature had adopted the principle that paper currency should be regarded as strictly representing gold, and should be at any moment convertible into sovereigns. A paper currency should never be allowed[238] to exceed the available property which it represents, but it is not necessary that its equivalent in gold should be lying idle in the coffers of the Bank, ready to be paid out at any moment the public should be seized with a foolish panic. It is enough that the credit of the State should be pledged for the value of the notes, and that credit should not be strained beyond the resources at its command. The close of 1822 formed the turning-point in the industrial condition of the country. The extreme cheapness of provisions, after three years of comparative privation, enabled those engaged in manufacturing pursuits to purchase many commodities which they had hitherto not been able to afford. This caused a gradual revival of trade, which was greatly stimulated by the opening of new markets for our goods, especially in South America, to which our exports were nearly trebled in value between 1818 and 1823, when the independence of the South American Republics had been established. The confidence of the commercial world was reassured by the conviction that South America would prove an unfailing Dorado for the supply of the precious metals. The bankers, therefore, became more accommodating; the spirit of enterprise again took possession of the national mind, and there was a general expansion of industry by means of a freer use of capital, which gave employment and contentment to the people. This effect was materially promoted by the Small Note Bill which was passed in July, 1822, extending for ten years longer the period during which small notes were to be issued; its termination having been fixed by Peel's Bill for 1823. The average of bank-notes in circulation in 1822 was ��17,862,890. In November of the following year it had increased by nearly two millions. The effect of this extension of the small note circulation upon prices was remarkable. Wheat rose from 38s. to 52s., and in 1824 it mounted up to 64s. In the meantime the bullion in the Bank of England increased so much that whereas in 1819 it had been only ��3,595,360, in January, 1824, it amounted to ��14,200,000. The effect of all these causes combined was the commencement of a reign of national prosperity, which burst upon the country like a brilliant morning sun, chasing away the chilling fogs of despondency, and dissipating the gloom in the popular mind.1

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THREE:Immediately after this engagement Blucher was joined by part of the grand army, under the Prince of Würtemberg; he therefore determined to attack Napoleon, and on the 1st of February drew out his forces. Napoleon would have declined the engagement; but he had the deep river Aube in his rear, and only the bridge of Lesmont by which to pass it. He preferred, on this account, to risk the battle, rather than retreat in such circumstances. Blucher attacked at once from the villages of La Rothi��re, Dienville, and Chaumont. The battle was severely contested for the whole day, the Prince of Würtemberg greatly distinguishing himself in it. In the end Buonaparte was wholly defeated, lost four thousand prisoners and seventy-three guns, and must have been captured himself, had not the Austrians, by surprising slowness, allowed him to escape over the bridge. He then retreated towards Troyes, where he was joined by his Imperial Guard; but his losses had been very heavy. Had Blucher and Schwarzenberg, who had now met, marched on united, they must have been in Paris in a very short time; but, with the German fatality of dividing, they had no sooner experienced the benefit of a powerful union than they called a council at the chateau of Brienne, and agreed to separate again. Blucher, joining to his own the divisions of Yorck and Kleist, proceeded towards Paris by the Marne, and Prince Schwarzenberg followed the course of the Seine.

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THREE:Sir Henry Hardinge, the new Governor-General of India, whom Sir Robert Peel recommended to the Board of Control, had been in the army since he was thirteen years of age. He had followed Wellington through all the battles of the Peninsular war, and had won all the military glory that could be desired, so that he was not likely to follow the example of Lord Ellenborough in opening fresh fields for the gathering of laurels in India. The Chairman of the East India Company, giving him instructions on his departure, cautioned him against following the example of Lord Ellenborough in appointing military officers as administrators in preference to the civil servants of the Crown. He reminded him that the members of the Civil Service were educated with a special view to the important duties of civil administration, upon the upright and intelligent performance of which so much of the happiness of the people depended. He expressed a hope that he would appreciate justly the eminent qualities of the civil servants of India; and that he would act towards the Sepoys with every degree of consideration and indulgence, compatible with the maintenance of order and obedience. He urged that his policy should be essentially pacific, and should tend to the development of the internal resources of the country, while endeavouring to improve the condition of the finances.Mr. Vandeleur, made judge of Queen's Bench 3,300

THREE:Mackintosh, who was a young lawyer of excellent education, but yet entirely unknown, this year published his "Vindici? Gallic?," in reply to Burke; but he did it with the behaviour of a gentleman, and evident admiration of the genius and political services of the great man whom he opposed. His book was immensely admired, and at once lifted him into notice. But it was not long before he began to see the correctness of Burke's views and prophecies as to the French Revolution, and he did not shrink from avowing the change of his sentiments in the Monthly Review and in conversation. His talents and this alteration of his views recommended him to the Ministers, and he was appointed by Pitt and Loughborough a professor of Lincoln's Inn, where, in a course of lectures on the Constitution of England, he exhibited himself as an uncompromising censor of the doctrines he had approved in his "Vindici? Gallic?." For this he was classed, by the vehement worshippers of French ideas, with Burke, as a venal turncoat. Mackintosh did not content himself with recanting his opinions on this topic from the platform and the press; he wrote directly to Burke, who was now fast sinking under his labours and his disappointments, and expressed his undisguised admiration of his sagacity as a politician, and of his general principles and political philosophy. Burke invited him down to Beaconsfield, where a closer view of the philosopher and orator greatly increased his esteem and admiration of the man.