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THREE:The unnatural state of things induced by the war had now brought about a great change in our currency. As we could manage to get in our goods to the Continent by one opening or another, but could not get the produce of the Continent in return, it would have appeared that we must be paid in cash, and that the balance of specie must be in our favour; but this was not the case. By our enormous payments to our troops in Spain, Portugal, and Sicily, as well as in the East and West Indies, and by our heavy subsidies, gold had flowed out of the country so steadily that there appeared very little left in it, and bank paper had taken its place. On the Continent, impoverished as they were, the people tenaciously clung to their gold, and Buonaparte alone could draw it from them in taxes. He always took a heavy military chest with him on his expeditions, and his officers also carried the money necessary for themselves in their belts, or otherwise about their immediate persons. The gold being enormously diminished in quantity in England, was carefully hoarded on all hands, thus again increasing the scarcity, and raising the value of it. The price of bullion had risen from twenty to thirty per cent., and here was a further strong temptation to hoard or send guineas to the melting-pot. This state of things led a certain class of political economists to call for a repeal of the Act for suspension of cash payments, and Francis Horner obtained a committee of inquiry into the causes of the decrease of gold and the increase of paper: and this committee came to the conclusion that the true cause of the evil lay in the excess of paper, and that the way to restrain it would be to allow the demand for gold at the Bank. But the truth was that the cause of the evil was not the excess of paper, but the enormous diminution of gold; and to have opened a legal demand for gold which could not be had would only have produced a panic, and a complete and horrible assassination of all credit and all business. But there were clearer-sighted men in Parliament, who declared that, though bullion had risen in price, bank-notes would still procure twenty shillings' worth of goods in the market, and that they were not, therefore, really depreciated in value. That was true, but guineas had, notwithstanding, risen to a value of five- or six-and-twenty shillings, and might be sold for that. Gold had risen, but paper had not fallen; and gold could not take the place of paper, because it did not, to any great extent, exist in the country; if it had, paper must have fallen ruinously. Mr. Vansittart and his party, therefore, moved resolutions that the resumption of cash payments being already provided for six months after the conclusion of peace, was an arrangement which answered all purposes, and ought not to be disturbed; that this would keep all real excess of paper in check, and leave gold to resume its circulation when, by the natural influence of peace, it flowed again into the country. These were, accordingly, carried.The Lord High Commissioner immediately proceeded on his great mission, and after a tedious voyage landed at Quebec on the 29th of May. He took with him, as his private secretary, Mr. Charles Buller, a man of singular ability, an ardent friend of free institutions, gifted with a large mind and generous sympathies, and a spirit that rose superior to all party considerations. A more suitable man could scarcely have been found for such a work. But he also took out with him Mr. Turton and Mr. Gibbon Wakefield, men of ability but hopelessly damaged in character. He promptly proceeded to dismiss his Council and to select another of five who had no acquaintance with Canadian politics. He found on his arrival 116 state prisoners, whose trial had been postponed, awaiting his instructions. On the 28th of June the Lord High Commissioner published an ordinance, in which it was stated that Wolfred Nelson, and seven other persons therein named, had acknowledged their guilt, and submitted themselves to her Majesty's pleasure; that Papineau, with fifteen others, had absconded. The former were sentenced to be transported to Bermuda during pleasure, there to be submitted to such restraints as might be thought fit; the latter, if they should return to Canada, were to be put to death without further trial. In each of these cases an unfortunate error was committed. The Lord High Commissioner had no legal authority out of Canada, and could not order the detention of any one at Bermuda; and to doom men to be put to death without further trial, was denounced in Parliament, by Lord Brougham and others, as unconstitutional. Lord Brougham described it as "an appalling fact." Such a proceeding, he said, was "contrary to every principle of justice, and was opposed to the genius and spirit of English law, which humanely supposed every accused party to be innocent until he was proved to be guilty." His reasons for the course he had adopted were given by Lord Durham, in a despatch to the Home Secretary, dated June 29th. The British party, he said, did not require sanguinary punishment; but they desired security for the future, and the certainty that the returning tranquillity of the province would not be arrested by the machinations of the ringleaders of rebellion, either there or in the United States. He said: "I did not think it right to transport these persons to a convict colony, for two reasons; first, because it was affixing a character of moral infamy on their acts, which public opinion did not sanction; and, secondly, because I hold it to be impolitic to force on the colony itself persons who would be looked on in the light of political martyrs, and thus acquire perhaps a degree of influence which might be applied to evil uses in a community composed of such dangerous elements."

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