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TWO:Whilst these elements of a new convulsion were in active operation, the Allies had settled to some extent the affairs of Europe, and had returned home. On the 30th of May a treaty had been signed at Paris, between Britain, Russia, Austria, and Prussia, with France. The boundaries of France were settled as they existed in 1792; it was decreed that Holland and Belgium should be united to form a strong barrier against France; the independence of Switzerland was restored; the north of Italy was again made over to Austria, including[86] Venice, but not including Sardinia, which was enlarged by the addition of Genoa, out of which Lord William Bentinck, with a British army, had driven the French. Murat had assisted the Austrians to conquer Eugene Beauharnais, and hoped to be allowed to retain Naples, yet having many fears of his new allies, the Austrians, and of the Allies generally. The Pope was again in peaceful possession of his States; the arms and the money of Great Britain had triumphed over Buonaparte, and had restored the monarchs of Europe to their thrones; but it was not to be denied that in restoring them they had restored so many detestable despotisms.
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TWO: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.
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TWO:It was at this crisis, when Hastings was just recovering his authority in the Council, that the news arrived in India, and spread amongst the native chiefs, that in Yenghi Dunia, or the New World, the Company Sahibfor the East Indians could never separate the ideas of the East India Company and England itselfthere had been a great revolution, and the English driven out. This, as might be expected, wonderfully elated the native chiefs, and especially those in the south. There the French of Pondicherry and Chandernagore boasted of the destruction of the British power, and that it was by their own hands. Hastings, who was as able and far-seeing as he was unprincipled in carrying out his plans for the maintenance of the British dominion in India, immediately set himself to counteract the mischievous effects of these diligently-disseminated rumours, and of the cabals which the French excited. These were most to be feared amongst the vast and martial family of the Mahrattas. The Mahrattas had risen on the ruins of the great Mogul empire. They now extended their tribes over a vast space of India from Mysore to the Ganges. The Peishwa, as head of these nations, held his residence at Poonah. Besides his, there were the great houses of Holkar and Scindia; the Guicowar, who ruled in Guzerat; the Bonslah, or Rajah of Berar, a descendant of Sivaji. The Mahrattas were, for the most part, a rude, warlike race, rapacious and ambitious, and living in the most primitive style. To destroy the confidence of these fierce warriors in the French, Hastings gave immediate orders, on receiving the news of the proclamation of war in Europe, for the seizure of the French settlements. This was on the 7th of July, 1778; on the 10th he had taken Chandernagore, and ordered Sir Hector[329] Munro to invest Pondicherry. That was soon accomplished, and the only remaining possession of France, the small one of Mah, on the coast of Malabar, was seized the next spring.(From the Picture by Franz Defregger.)
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