ONE:ON THE EVENING OF THE BATTLE OF WATERLOO.Having reported to Mr. Canning the result of his diplomatic efforts at Paris, the Duke set out on his journey to Vienna, where he arrived on the 29th of September, and where he expected the Congress to be held. But there again England's plenipotentiary, the great conqueror of Napoleon, who had restored the legitimate despots to their thrones, was treated with as little consideration as at Paris. Not till his arrival did he learn that the Congress which he was invited to attend was not to be held at Vienna at all, but at Verona. Meanwhile, in the interval between the adjournment from one city to another, the Allied Sovereigns were paying a visit of friendship to the King of Bavaria, whose system of government no doubt met with their unqualified approval. As the Duke's instructions forbade him to meddle with Italian affairs, he tarried at Vienna till he should receive further instructions from his own Government. While awaiting an answer he had opportunities of conferring personally with the Czar, who had obtained an ascendency in the councils of the Holy Alliance which rendered him the virtual master of every situation. With regard to the affairs of Turkey, the Duke succeeded in obtaining from his Imperial Majesty an assurance that, unless driven to it by some unforeseen and irresistible necessity, he would not come to an open rupture with the Sultan. He was not so successful in his exertions with regard to the Spanish question, on which the Czar was in an irritable mood. He said that Spain was the very centre and focus of revolutionary principles, and he felt it to be the duty not less than the policy of the Allied Sovereigns to trample them out at their source, and for this purpose he had proposed to contribute 150,000 men, whom he intended to march into Spain through French territory. In reply to the Duke's earnest remonstrances against this course, the Czar put a question which betrays the aggressive policy of military despots. He asked what he was to do with his army. It insisted upon being led against Turkey, and was only restrained because he had expressed his determination of employing it in putting down what he called Jacobinism in the west.
THREE: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 commoditiesthe sale of which was relied upon to pay themdid 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. William Handcock, an extraordinary instance. He made and sang songs against the union, in 1799, at a public dinner, and made and sang songs for it in 1800; for which he was made Lord Castlemaine.
THREE:Parliament, having so smoothly transacted its business, was prorogued on the 14th of June, and Walpole then addressed himself to the settlement of the Spanish difference. But here he found a spirit of resistance which had undoubtedly grown from the invectives of the Opposition. The outcries against the Spanish captains, the right of search, and the payment of compensation for the ships taken by Byng, had given great offence to the proud Spaniards. They were encouraged, also, by the earnest manner in which Walpole had argued for peace. They now assumed a high tone. They complained of the continuance of the British fleet in the Mediterranean. They demanded the payment of the sixty-eight thousand pounds which they said was due from the South Sea Company,[72] though it had been stipulated in the Convention that it should not come into consideration.