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It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.

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Sir Robert Wilson, the British Commissioner, urged Kutusoff, indeed, to make one general and determined attack on Buonaparte and this small body before the other divisions could come up; and there can be no doubt that, had he done so, he would have destroyed the division utterly, and made himself master of Napoleon's person. But though Kutusoff had fought the battle of Borodino, he had now grown over-cautious, and did not do that which it was the plan of Barclay de Tolly, whom he superseded, to do when the right moment came. Whilst Kutusoff was thus timidly cannonading, the division of Davoust came up, and he retired, allowing both Buonaparte and Davoust to secure themselves in Krasnoi. As for Ney, he was left behind wholly surrounded by the Russians who had harassed the rear of Davoust, and were thus interposed between Davoust and himself, as well as swarming on his own flanks and rear. Napoleon could not wait for him, even at Krasnoi. He learned that the Russians were drawing fast towards his crossing-places at the Dnieper and the Beresina; that Prince Galitzin with a strong force was about to occupy Krasnoi; that the Dnieper at Liady would be immediately in the hands of the enemy. He therefore called Mortier, and squeezing his hand sorrowfully told him that he had not a moment to lose; that the enemy were overwhelming him in all directions; that Kutusoff might have already reached Liady, perhaps Orcha, and the last winding of the Dnieper was yet before him. Then, with his heart full of Ney's misfortunes, he withdrew, in despair at being forced to abandon him, towards Liady. He marched on foot at the head of his Guard, and often talked of Ney. He called to mind his coup-d'?il, so accurate and true, his courage, proof against everythingin short, all the qualities which made him so brilliant on the field of battle. "He is lost! Well! I have three hundred millions in the Tuileries; I would give them all were he restored to me!"But this improvement produced no sensible effect upon the mass of labouring people. However brightly the sun of prosperity might gild the eminences of society, the darkness of misery and despair settled upon the masses below. The Commissioners proceed:"A reference to the evidence of most of the witnesses will show that the agricultural labourer of Ireland continues to suffer the greatest privations and hardships; that he continues to depend upon casual and precarious employment for subsistence; that he is still badly housed, badly fed, badly clothed, and badly paid for his labour. Our personal experience and observation during our inquiry have afforded us a melancholy confirmation of these statements; and we cannot forbear expressing our strong sense of the patient endurance which the labouring classes have generally exhibited under sufferings greater, we believe, than the people of any other country in Europe have to sustain."
ONE:Strong as was the majority of Ministers, however, the king did not wait for their resigning. The day after this debate (Thursday, December 18th), the king sent, at twelve o'clock at night, to Fox and Lord North an order to surrender their seals of office to their Under-Secretaries, as a personal interview, in the circumstances, would be disagreeable. Fox instantly delivered up his; but Lord North was already in bed, and had entrusted his seal to his son, Colonel North, who could not be found for some time. The Seals were then delivered to Lord Temple, who, on the following day, sent letters of dismissal to all the other members of the coalition Cabinet. Pitt, though in his twenty-fifth year only, was appointed first Lord of the Treasury and Chancellor of the Exchequer, and on him devolved the duty of forming a new Administration. Earl Gower was nominated President of the Council, and Lord Temple one of the Secretaries of State. When the House of Commons met in the afternoon, Fox imagined, from a motion of Dundas to proceed to business without the usual adjournment on Saturday, that it was the object of the new party to pass certain money Bills, and then resort to a dissolution. Fox opposed the motion, declaring that a dissolution at this moment would produce infinite damage to[304] the service of the nation, and that, should it take place in order to suit the convenience of an ambitious young man (meaning Pitt), he would, immediately on the meeting of the new House, move for an inquiry into the authors and advisers of it, in order to bring them to punishment. This caused Lord Temple, who had occasioned the breaking up of the Coalition, to resign again immediately, declaring that he preferred meeting any aspersions upon him in his private and individual capacity. This certainly removed a great danger from his colleagues, although it rendered the task of his friend and relative, Pitt, still more difficult, in having to form an Administration alone. The Ministry was then filled up thus:Lord Sydney, Secretary of State for the Home Department; the Marquis of Carmarthen for the Foreign; the Duke of Rutland, Lord Privy Seal; Lord Gower became President of the Council; the Duke of Richmond, Master-General of the Ordnance; Lord Thurlow again Chancellor; Lord Howe, First Lord of the Admiralty. With the exception of Pitt, the whole of the Cabinet was drawn from the House of Lords. When the Commons met, on the 22nd, Mr. Bankes said he was authorised by Mr. Pitt, who was not in the House, a new writ for Appleby being moved for on his appointment to office, to say that he had no intention to advise a dissolution. His Majesty, on the 24th of December, having also assured the House that he would not interrupt their meeting after the recess by either prorogation or dissolution, the House adjourned till the 12th of January, 1784.

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TWO:The Liberals seem to have been strongly inclined to the opinion that the Duke of Wellington, having won the great victory of Emancipation, should retire from the fieldthat he was not fit to lead the van of progress in Parliament. "The Prime Minister of England," exclaimed Sir Francis Burdett, "is shamefully insensible to the suffering and distress which are painfully apparent throughout the land. When, instead of meeting such an overwhelming pressure of necessity with some measure of relief, or some attempt at relief, he seeks to stifle every important inquirywhen he calls that a partial and temporary evil which is both long-lived and universal,I cannot look on such a mournful crisis, in which the public misfortune is insulted by Ministerial apathy, without hailing any prospect of change in the system which has produced it. What shall we say to the ignorance which can attribute our distress to the introduction of machinery and the application of steam, that noble improvement in the inventions of man to which men of science and intelligence mainly ascribe our prosperity? I feel a high and unfeigned respect for that illustrious person's abilities in the field, but I cannot help thinking that he did himself no less than justice when he said, a few months before he accepted office, that he should be a fit inmate for an asylum of a peculiar nature if he ever were induced to take such a burden upon his shoulders." On the other hand the Opposition was nearly as disorganised as the Government, until Lord Althorp was selected to lead it in the Commons.

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TWO:The success of the revolt against the French in Spain was certain to become contagious in Portugal. Junot was holding the country with an army of thirty thousand men, amongst whom there was a considerable number of Spanish troops, who were sure to desert on the first opportunity after the news from Spain. What Buonaparte intended really to do with Portugal did not yet appear. The conditions of the Treaty of Fontainebleau remained a dead letter. He had established neither the Queen of Etruria nor the Prince of the Peace in their kingdoms there. The likelihood was that, as soon as Spain was secure, he would incorporate Portugal with it. This seemed very probably his intention, from words that he let fall at an Assembly of Portuguese Notables, whom he had summoned to meet him at Bayonne. The Count de Lima, the president of the Assembly, opened it with an address to Napoleon, who listened with great nonchalance, and then said, "I hardly know what to make of you, gentlemen; it must depend on the events in Spain. And, then, are you of consequence sufficient to constitute a separate people? Have you enough of size to do so? What is the population of Portugal? Two millions, is it?" "More than three, sire," replied the Count. "Ah, I did not know that. And Lisbonare there a hundred and fifty thousand inhabitants?" "More than double that number, sire." "Ah, I was not aware of that. Now, what do you wish to be, you Portuguese? Do you desire to become Spaniards?" "No!" said the Count de Lima, bluntly, and drawing himself up to his full height. Then Buonaparte broke up the conference.

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TWO:But we have far overshot the contemporary history of Bengal. The Presidency thought it had greatly benefited by the reforms of Clive; yet it had since been called upon to furnish large supplies of men and money to support the unprincipled transactions at Madras, which we have briefly detailed, and the India House, instead of paying the usual dividends, was compelled to reduce them. Further, a terrible famine devastated Bengal, and more than half the population are said to have been swept away. This state of things compelled Parliament to turn its attention to India. General Burgoyne, now active in the Opposition, moved and carried, on the 13th of April, 1772, a resolution for the appointment of a select Committee of thirteen members to inquire into Indian affairs; and Burgoyne, who was extremely hostile to Clive, was appointed chairman. The committee went actively to work, and presented two reports during the Session. After Parliament met again in November, Lord North, who had conversed with Clive during the recess, called for and carried a resolution for another and this time a secret committee. As the Company was in still deeper difficulties, and came to Lord North to borrow a million and a half, he lent them one million four hundred thousand pounds, on condition that they should keep their dividends at six per cent. until this debt was repaid, and afterwards at eight per cent. He at the same time relieved them from the payment of the four hundred thousand pounds per annum, imposed by Lord Chatham, for the same period. This was done in February, 1773, and in April he brought in a Bill at the suggestion of Clive, who represented the Court of Proprietors at the India House as a regular bear-garden, on account of men of small capital and smaller intelligence being enabled to vote. By North's Bill it was provided that the Court of Directors should, in future, instead of being annually elected, remain in office four years; instead of five hundred pounds stock qualifying for a vote in the Court of Proprietors, one thousand pounds should alone give a vote; three thousand pounds, two votes; and six thousand pounds, three votes. The Mayor's Court in Calcutta was restricted to petty cases of trade; and a Supreme Court was established, to consist of a Chief Justice and three puisne judges, appointed by the Crown. The Governor-General of Bengal was made Governor-General of India. These nominations were to continue for five years, and then to return to the Directors, but subject to the approval of the Crown. Whilst the Bill was in progress, the members of the new Council were named. Warren Hastings was appointed the first Governor-General; and in his Council were Richard Barwell, who was already out there, General Clavering, the Honourable Colonel Monson, and Philip Francis.[323] Another clause of Lord North's Bill remitted the drawback on the Company's teas for export to America, an act little thought of at the time, but pregnant with the loss of the Transatlantic colonies. By these "regulating acts," too, as they were called, the Governor-General, members of Council, and judges, were prohibited from trading, and no person in the service of the king or Company was to be allowed to receive presents from native princes, nabobs, or their ministers or agents. Violent and rude, even, was the opposition raised by the India House and all its partisans to these two Bills.

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This branch of the rebel force was thus completely removed from the field, and on the same day a far more sanguinary conflict had taken place between the chief commanders on the two sides, Argyll and Mar, at Sheriffmuir.These certainly were large concessions, but it was to be remembered that we had not received them for nothing; they had cost vast sums, and the national debt had been doubled by this war, and now amounted to one hundred and twenty-two million six hundred thousand pounds. These territories had, in fact, cost us upwards of sixty million pounds; and it is certain that Pitt would have exacted a more complete renunciation from France of the conquered countries. There was a clause inserted which Pitt would never have permittednamely, that any conquests that should be made after the signing of these articles, should be restored by all parties. Now, Bute and the Ministry knew that we had expeditions out against Cuba and the Philippines, and that the only conquests likely to be made were in those quarters. To throw away without equivalent the blood and money expended in these important enterprises was a most unpatriotic act. Still, there was opportunity for more rational terms, for Grimaldi, the Spanish ambassador at Paris, held back from signing, in hope that we should be defeated at Havana, and that then he could raise his terms. When the news of the loss of both Havana and Manila arrived, Grimaldi was in great haste to sign, and Mr. Grenville and Lord Egremont very properly insisted that we should demand an equivalent for the conquest in Cuba. Pitt would have stood firm for the retention of that conquest as by far the most important, and as justly secured to us by the refusal of the Spanish ambassador to sign at the proper time. But Bute would have signed without any equivalent at all. Fortunately, there was too strong an opposition to this in the Cabinet, and the Duke of Bedford was instructed to demand Florida or Porto Rico in lieu of Havana. Florida was yieldeda fatal, though at the moment it appeared a valuable concession, for it only added to the compactness of the American colonies, hastening the day of independence, whilst Cuba would have remained under the protection of the fleet, one of the most valuable possessions of the British empire.As the wind was light, the British vessels set their studding-sails, and bore down steadily on the enemy. There were of the British twenty-seven sail of the line, four frigates, one schooner, and one cutter. Of the French and Spaniards there were thirty-three sail of the line, five frigates, and two brigs; but the French vessels were in far superior condition to the old weather-worn ones of Nelson. The French had two thousand six hundred and twenty-six guns, Nelson two thousand one hundred and forty-eight. Collingwood's line first came into contact with the enemy in the Royal Sovereign, and was speedily in the midst of a desperate conflict. It was some time before Nelson's line got up, and Collingwood, amid the din of cannon and the crash of spars, turned to his captain, and said, "Rotherham, what would not Nelson give to be here?" It was just past twelve o'clock at noon as Collingwood's vessel came to close quarters with the Spanish flagship, Santa Anna, and it was more than a quarter of an hour before Nelson's ship came close up to the stupendous four-decker Spaniard, the Santissima Trinidad. He was soon in a terrible contest not only with this great ship, but with the Bucentaure, of eighty guns, the Neptune, of eighty guns, and the Redoubtable, of seventy-four guns. The Victory and Redoubtable were fast entangled together by their hooks and boom-irons, and kept up the most destructive fire into each other with double-shotted cannon. Both ships took fire; that in the Victory was extinguished, but the Redoubtable finally went down. But it was from the mizen top-mast of this vessel that one of the riflemen marked out Nelson by his stars, and shot him down. He fell on the deck, on the spot where his secretary, John Scott, had fallen dead just before. Captain Hardy, to whom Nelson had shortly before said, "Hardy, this is too warm work to last long," stooped, and observed that he hoped that he was not severely wounded. He replied, "Yes, they have done for me at last, Hardy." Hardy said he hoped not. "Yes," he answered; "my back-bone is shot through." He was carried down to the cock-pit, amongst the wounded and the dying, and laid in a midshipman's berth. The ball was found to have entered the left shoulder and to have lodged in the spine; the wound was mortal. For an hour the battle went on in its terrible fury, as the dying hero lay amid those expiring or wounded around him. He often inquired for Captain Hardy, but Hardy found it impossible, in the midst of one of the fiercest and most mortal strifes that ever was wagedthe incessant cannonades sweeping away men, masts, tackle at every momentto go down. When he was able to do it, Nelson asked how the battle went. Hardy replied, "Well, fourteen or fifteen vessels had struck." "That is well," said Nelson; "but I bargained for twenty." He then told Hardy to anchor, foreseeing that a gale was coming on; and Hardy observed that Admiral Collingwood would now take the command. At this the old commander blazed forth in the dying man for a moment. He endeavoured to raise himself in the bed, saying, "Not while I live, Hardy! No, do you anchor!" And he bade Hardy signal to the fleet this order. His last words were again to recommend Lady Hamilton and his daughter to his country, and to repeat several times, "Thank God, I have done my duty!"
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