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TWO:Both Pitt and Fox died in 1806, and a circumstance occurred in the following year which showed the inveterate obstinacy of the king regarding the Catholics. Lord Howick, Secretary for Foreign Affairs, obtained leave to bring in a Bill to enable Catholics to hold the higher offices in the army and navy; but the king soon let him know that he should not ratify any such Bill, and he agreed to withdraw it. But this did not satisfy George; he demanded from the Ministers a written engagement to propose no further concessions to the Catholics, and as they declined to do this, he dismissed them, and placed the Duke of Portland at the head of a new Cabinet.

TWO:The French army in Spain numbered more than two hundred thousand men, and of these more than one hundred and thirty thousand lay in the provinces bordering on Portugal, or between it and Madrid. Victor had thirty-five thousand in Estremadura; and close behind him, in La Mancha, Sebastiani had twenty thousand more. Northward, in Old Castile, Leon, and Asturias, Kellermann and Bonnet had ten thousand. Soult, in Galicia, was joined by Ney and Mortier, making his army again upwards of fifty thousand, with whom he contemplated returning into Portugal. General Dessolles had fifteen thousand men at Madrid to protect the intrusive King Joseph; and Suchet and Augereau, in Aragon and Catalonia, commanded fifty thousand. Almost all the strong fortresses in the country were in their hands. The only circumstances favourable to the Allies were that the French generals were at variance amongst themselves; that none of them paid any deference to the commands of King Joseph, who was nominally generalissimo; and that the Spaniards were, everywhere where woods and mountains favoured them, harassing the French in a manner that made them very sick of the country, and that often reduced them to a state of severe privation.Before this, however, the financial statement for the year had been made, and for awhile the Corn Law question was suspended for the country to recover from its astonishment at finding in the Minister of the Conservative party one of the boldest reformers of our tariff who had ever occupied the Ministerial benches. But yesterday his position had appeared one of the greatest difficulty, in which a cautious hold upon the established sources of revenue, with some well-balanced proposals for additional taxes, was all that could be expected. He had not the good fortune of Mr. Goulburn or Lord Althorp in having a surplus to dispose of. The Whig Government had bequeathed to their successors a deficit, which had been increasing from year to year, with a revenue falling off even in the face of new taxes. How[488] was the deficit to be met was the question which filled the mouths of public men; a question which was answered by the famous financial statement of Sir Robert Peel on the 11th of March. After showing that the deficiency for the coming year would be little short of ��2,500,000, and that this deficiency might be expected to be considerably augmented by the position of affairs in India and China, the Minister declared that he would not consent to resort to the miserable expedient of continual loans. He declared that he would not attempt to impose burdens upon the labouring classes, and that if he did, recent experience had shown that they would be defeated. In fact, the country had arrived at the limits of taxation upon articles of consumption. After ridiculing the various suggestions of people who were constantly sending him projects for taxes on pianofortes, umbrellas, and other articles, accompanied with claims of very large percentages upon the proceeds, he acknowledged the principle laid down by financiers that increased revenue may be obtained by taking off the taxes which pressed upon industry, but declared that the first effect was always a diminution in revenue, and that time was found necessary to restore the amount. In these circumstances, he stated what the measure was which, under a deep conviction of its necessity, he was prepared to propose, and which, he was persuaded, would benefit the country, not only in her pecuniary interests, but in her security and character. His scheme was this: he proposed, for a period to be limited, an income tax of not more than 3 per cent., from which he would exempt all incomes under ��150, and in which he would include not only landed but funded property. Sir Robert Peel calculated that the tax would yield ��3,350,000 a year, a sum which, with an addition to the spirit duties in Ireland, and an export duty of 4s. on coals, would not only cover the existing deficiency, but enable him to remit indirect taxes to the amount of ��1,200,000. The sliding scale had brought little credit to the Minister, and the income tax was in its nature an unpopular measure; but the proposal to reduce the custom duties on 750 out of the 1,200 articles in the tariff��to remove prohibitions altogether (in itself a vast concession to Free Trade doctrines)��to reduce the duties on raw materials of manufactures to five per cent. or less��to keep the duties on articles partially manufactured under twelve per cent., and on articles wholly manufactured under twenty per cent., was a scheme which excited general admiration. The measure was, indeed, contested by the Whig Opposition at every stage. The preliminary resolutions were debated for eight nights. There were many of Sir Robert Peel's old supporters who looked on the financial plan with distrust, as being founded, in a great measure, avowedly on those principles of political economy which they had been accustomed to sneer at; but, in truth, it was not unfavourable to the interests of their party. We have already seen that the new tax��at least, if a temporary one��was calculated to impose a far greater burden upon the manufacturing and moneyed class than upon the landowners; in fact, by exempting incomes under ��150 a year, and assessing land only upon its net rental, the burden was imposed almost entirely upon that middle class which was the especial object of the dislike of Tories of the more advanced kind. At the same time, by cheapening articles of general consumption, the Minister did something towards securing popularity among the working classes, who, as exemplified in the Chartist agitation, were not always disposed to take part against the landowners. The Income Tax Bill passed, after considerable opposition in the Commons. An amendment proposed by Lord John Russell was rejected by a vote of 302 to 202, and another amendment, proposing the reading of the Bill on that day six months, having been thrown out on the 18th of April by a vote of 285 to 188, the third reading was carried by a majority of 130 on the 30th of May. No debate took place in the Lords until the third reading, when the Bill passed by a majority of 71.

TWO:Before these discussions took place, an attempt had been made by similar means to lead the people of Scotland into insurrection. Emissaries appeared in the towns and villages informing the people that there were preparations made for a general rising, and they were ordered to cease all work and betake themselves to certain places of rendezvous. On the morning of Sunday, the 2nd of April, the walls of Glasgow were found placarded everywhere by a proclamation, ordering all persons to cease labour and turn out for a general revolution. The next morning the magistrates called out the military, and they were drawn up in the streets in readiness for the appearance of an insurrection, but none took place. The people were all in wonder, and assembled to see what would happen; but there appeared not the slightest disposition to make any disorder, and some of the cotton mills were at work as though nothing was expected to take place. But still, the mischief had not altogether failed. Some fifty poor ignorant men had been decoyed out of Glasgow to near Kilsyth, on the assurance that four or five thousand men would there join them, and proceed to take the Carron Ironworks and thus supply themselves with artillery. These poor dupes were met on the road, on some high ground on Bonnymuir, by a detachment of armed men sent out against them, and, after some resistance, during which some of them were wounded, nineteen were made prisoners and the rest fled. Other arrests were made in different parts of Scotland, and they were tried in the following July and August; but so little interest was felt in this attempt, or in the details of what was called "the Battle of Bonnymuir," that three only were punished and the rest discharged.

TWO:The victory of Napoleon over Austria had wonderfully increased his influence with those German States which formed the Confederation of the Rhine. Bavaria, Würtemberg, Hesse-Darmstadt, and other of the small princes, especially those on the right bank of that river, were more than ever bound to him, and were prepared to follow him in any wars that he might make against other countries, or even their own fatherland. Whilst some of them received crowns for their unnatural subserviency, several smaller princes were sunk into the condition of mere nobles. The military contingents which he exacted from them amounted to sixty thousand men, and these he soon had in a state of discipline and efficiency very different to that which they exhibited under the old German federation. Under Napoleon they behaved as well as any of his troops, showing that they needed only leaders of activity and talent to make good soldiers of them. Thus France superseded Austria in its influence over all the south-west of Germany. Nor did he stop here. He had created dukes and princes, and resolved also to create kings. These were to be his brothers, who were to be placed on half the thrones of Europe, and set there as vassal monarchs doing homage and service to him, the[524] great emperor of France. He expected them to be the obedient servants of France, or, rather, of himself, and not of the countries they were ostensibly set to govern. He began by making his brother Joseph King of Naples in March, and in June he made his brother Louis King of Holland. He told them that they must never forget that their first duty was to France and to himself. He intended to make his brother Jerome King of Westphalia; but Jerome had married a Miss Paterson, the daughter of an American merchant, and he must have this marriage broken, and a royal one arranged, before he could admit him to this regal honour: he must also wrest part of this territory from Prussia. His sister Pauline, widow of General Leclerc, who perished in St. Domingo, he had now married to the Roman Prince Borghese, and he gave her the Italian duchy of Guastalla. Murat, who had married another sister, he made Grand Duke of Berg and Cleve, and Marshal Berthier he made Prince of Neuchatel. These territories, taken from Prussia, Bavaria, and Switzerland, he conferred, with all their rights and privileges, on these generals. The duchy of Parma he conferred on Cambac��r��s, and Piacenza on General Lebrun.