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It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to docauses that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discoverya box containing 700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from 17,477,290 to 25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds.
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On the 8th of May, 1777, Ministers moved for more money for the insatiable Landgrave of Hesse, whose troops were at this very time exhibiting the most scandalous state of defiance of discipline, of consequent inefficiency, and of plunder of the inhabitants of America. This grant, though violently opposed, was carried, but only by a majority of eight. All parties now began to denounce the shameless rapacity of these German princes. Nor did Chatham, ill as he was, allow the Session to pass without making one more energetic protest against the continuance of the war with America. On the 30th of May he moved an address to his Majesty for the immediate cessation of hostilities. Notwithstanding all that had been said on our successes over the Americans, Chatham contended as positively as ever that we could never conquer them. "You have," he said, "ransacked every corner of Lower Saxony, but forty thousand German boors never can conquer ten times the number of British freemen. You may ravage, you cannot conquerit is impossibleyou cannot conquer America. You talk of your numerous funds to annihilate the Congress, and your powerful forces to disperse their army; I might as well talk of driving them before me with my crutch! But what would you conquer? The map of America? I am ready to meet any general officer on the subject" (looking at Lord Amherst)"What will you do out of the protection of your fleet? In the winter, if together, they are starved; and if dispersed, they are taken off in detail. I am experienced in spring hopes and vernal promises. I know what Ministers throw out; but at last will come your equinoctial disappointment. You have got nothing in America but stations. You have been three years teaching them the art of war. They are apt scholars; and I will venture to tell your lordships that the American gentry will make officers enough fit to command the troops of all the European Powers." Chatham's motion was rejected by ninety-nine votes against twenty-eight. Parliament was prorogued by the king on the 6th of June, in a speech in which he indulged the fallacious hope that the American insurrection would be terminated in the present campaign. But Chatham's prophecies were at the very time realising themselves. Had the Howes had the necessary qualities of commanders in such an important causehad they pursued and dispersed[235] the American army, as they ought to have done on defeating it, and as they might readily have done; and had the British Government instantly, whilst in this favourable position, repealed all the obnoxious statutes, they would have thrown Congress and Washington so completely into the wrong, that it would have been impossible for them to have made head again. But neither the Generals nor the Government of that day had the capacity for such strategic and statesmanlike policy. The Generals went comfortably into winter quarters, leaving the embers of war to rekindle and spread; and Government, deaf to the warnings of Chatham, still stolidly refused justice whilst rigorously enforcing their injustice. And, indeed, when Chatham gave his last Cassandra-like remonstrance, it was already too late. We had indeed taught the Americans the art of war. Washington was no longer contented to stand on the defensive, happy if he could preserve his soldiers from running off without fighting at all. His circumstances were desperate, and the energy which springs from despair now urged him to measures of daring and wakefulness just as the English Generals, like northern bears, were entering on their winter's sleep. Benedict Arnold had paid him a visit in his wretched camp beyond the Delaware, and probably from their united counsels sprang a new style of movement, which confounded his unsuspecting enemies.The arbitrary crushing of the freedom of the Tyrol, and the handing of it over to the Bavarians as a gift, was not the only oppression of this period of Napoleon's career, which the Germans call his supremacy. He seemed to have put down all opposition on the Continent, except in Spain, and he dictated to all nations according to the arrogance of his will. His general in Poland, Poniatowski, himself a Pole, was employed to crush his countrymen. Poniatowski fell on the Austrians with forty thousand men, and made himself master of Warsaw, whilst the Archduke Ferdinand was besieging Thorn. He then advanced against the archduke, beat him in two battles fought in April and May, and eventually drove the Austrians out of the Grand Duchy of Warsaw. Buonaparte then divided Galicia, giving one portion to the Emperor of Russia, and adding the other to the Grand Duchy of Warsaw, which was restored to the King of Saxony. Thus the Poles saw an end of all the high hopes with which Buonaparte had artfully succeeded in inspiring them, in order to induce them to[594] fight his battles for the subjugation of other peoples.Whilst the English Court was distracted by these dissensions, the Emperor was endeavouring to carry on the war against France by himself. He trusted that the death of Queen Anne would throw out the Tories, and that the Whigs coming in would again support his claims, or that the death of Louis himself might produce a change as favourable to him in France; he trusted to the genius of Eugene to at least enable him to maintain the war till some such change took place. But he was deceived. The French, having him alone to deal with, made very light of it. They knew that he could neither bring into the field soldiers enough to cope with their arms, nor find means to maintain them. They soon overpowered Eugene on the Rhine, and the Emperor being glad to make peace, Eugene and Villars met at Rastadt to concert terms. They did not succeed, and separated till February; but met again at the latter end of the month, and, on the 3rd of March, 1714, the treaty was signed. By it the Emperor retained Freiburg, Old Briesach, Kehl, and the forts in the Breisgau and Black Forest; but the King of France kept Landau, Strasburg, and all Alsace. The Electors of Bavaria and Cologne were readmitted to their territories and dignities as princes of the Empire. The Emperor was put in possession of the Spanish Netherlands, and the King of Prussia was permitted to retain the high quarters of Guelders.
THREE:The spring of 1720 was a period of remarkable national prosperity. But "the grand money schemes projected of late," which appeared to the Jacobite Atterbury and others calculated to cement the royal peace and strengthen the foundation[46] of the Government and nation, were destined to produce a very different effect. For the South Sea Bubble was about to burst. In 1711, Harley, being at his wits' end to maintain the public credit, established a fund to provide for the National Debt, which amounted to ten millions of pounds. To defray the interest he made permanent the duties on wine, vinegar, and tobacco, etc. To induce the purchase of the Government stock, he gave to the shareholders the exclusive privilege of trading to the Spanish settlements in South America, and procured them an Act of Parliament and a royal charter, under the name of the South Sea Company. The idea, hollow and groundless as it was, seized on the imagination of the most staid and experienced traders. All the dreams of boundless gold which haunted the heads of the followers of Drake and Raleigh were revived. The mania spread through the nation, and was industriously encouraged by the partisans of Harley. But this stupendous dream of wealth was based on the promises of Ministers, who at the Peace of Utrecht were to secure from the Government of Spain this right to trade to its colonies. The right was never granted by that haughty and jealous Power, further than for the settlement of some few factories, and the sending of one small ship annually of less than five hundred tons. This, and the Assiento, or privilege of supplying those colonies with African slaves, were the sole advantages obtained, and these were soon disturbed by the war with Spain, which broke out under Alberoni. The South Sea Company, however, from its general resources, remained a flourishing corporation, and was deemed the rival of the Bank of England.
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THREE:A still more signal victory was won by Admiral Duncan in the autumn. On the 11th of October, the Admiral, who had been watching the Dutch fleet in the Texel, found that during a storm it had stolen out, and was on its way to join the French fleet at Brest. There were eleven sail of the line, and four fifty-six gun ships, commanded by Admiral de Winter. Duncan had sixteen sail of the line. Notwithstanding our superiority of numbers, the Dutch fought with their accustomed valour, but Duncan ran his ships between them and the dangerous coast, to prevent their regaining the Texel, and so battered them that they were compelled to strike. Eight sail of the line, two fifty-six gun ships, and two frigates remained in our hands; but the Dutch had stood it out so stoutly, that the vessels were few of them capable of being again made serviceable. The loss in killed and wounded on both sides was great. Duncan was elevated to the peerage for this victory of Camperdown, and the danger of immediate invasion was at an end.Clinton, having now united his forces at New York, directed his attention to the approach of the fleet of D'Estaing. This had sailed for the Delaware, expecting to find Lord Howe there; but, finding that he had sailed for New York, it followed him, and arrived there six days after him. The fleet of D'Estaing consisted of twelve sail-of-the-line and six frigates. Howe had only ten sail-of-the-line, and some of them of only forty or fifty guns, and a few frigates. Besides, D'Estaing had heavier metal, and ships in much better condition, for those of Howe were old and out of repair, and their crews were considerably deficient. Altogether, D'Estaing had eight hundred and fifty-four guns; Howe, only six hundred and fourteen. From D'Estaing's superiority of force it was quite expected that he would attack Howe; but he was dissuaded by the pilots from entering the harbour, and lay outside eleven days, during which time he landed the Ambassador. Lord Howe showed much spirit in preparing for an encounter, though he was daily in expectation of Admiral Byron with some additional ships, the Admiral coming to supersede him. He put his ships in the best order he could, and the English seamen hurried in from all quarters to man his vessels. A thousand volunteers came from the transports, and masters and mates of merchantmen offered their services. Just, however, when it was expected that D'Estaing would avail himself of the tide, on the 22nd of July, to enter the harbour, he sailed away for Rhode Island, and up the Newport river. In a few days Howe sailed in quest of D'Estaing. They found D'Estaing joined by Lafayette with two thousand American troops, and by General Sullivan with ten thousand more, and D'Estaing proposed to land four thousand from his fleet. The English garrison in Newport amounted to only five thousand men. But here a contest arose between D'Estaing and Sullivan for the supreme command, and this was not abated till Howe with his fleet hove in sight. Then D'Estaing stood out to sea, in spite of the remonstrances of Sullivan, Greene, and the other American officers. Lord Howe endeavoured to bring him to action, at the same time man?uvring to obtain the weather-gauge of him. In these mutual endeavours to obtain the advantage of the wind, the two fleets stood away quite out of sight of Rhode Island, and Sullivan commenced in their absence the siege of Newport. Howe, at length, seeing that he could not obtain the weather-gauge, determined to attack the French to leeward, but at this moment a terrible storm arose, and completely parted the hostile fleets, doing both of them great damage. D'Estaing returned into the harbour of Newport, but only to inform the Americans that he was too much damaged to remain, but must make for Boston to refit. Sullivan and the other officers remonstrated vehemently against his departure; but in vain. Scarcely had D'Estaing disappeared, when Sir Henry Clinton himself, leading four thousand men, arrived in Rhode Island, and Sullivan crossed to the mainland in haste. He blamed the French for the failure of the enterprise.
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