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But the agitation of this question produced a strong sensation on the Continent. Buonaparte, who watched every movement of the British Parliament and Government with the deepest anxiety, immediately seized on the discussion as a proof that Great Britain was fast sinking under his Continental system. That system, indeed, was rapidly prostrating the Continent. From all sides complaints had long been pouring in upon him that the suppression of commerce was ruining the great mercantile citiesHamburg, Bremen, Amsterdam, Rotterdam, Antwerp, Naples, Genoa, and the other parts of Italy; and that it was diffusing universal poverty and distress. The breach which the Emperor Alexander had made in it, and the determined resistance which the Swedes made to it, had caused him to feel the necessity of relaxing the rigour of his system. But now he took fresh courage. He believed that Great Britain was at her last gasp; that there would speedily be universal rebellion within her from starving citizens; and he held on in his plan, and this proved his ultimate destruction; for it made him all the more determined to coerce Russia, and thus precipitated his fatal campaign against that country.At this crisis George Grenville brought in and carried through a measure, which showed how useful he might have been, had he never been raised out of his proper element to rule and alienate colonies. He was now fast sinking into the grave, though but fifty-eight years of age. This measure was a bill to transfer the trial of controverted elections from the whole House of Commons to a select Committee of it. Ever since the famous Aylesbury case, the whole House had taken the charge of examining all petitions against the return of candidates and deciding them. This was a great obstruction of business; and Grenville now proposed to leave the inquiry and decision to the select Committee, which was to be composed of fifteen members of the House, thirteen of whom were to be chosen by the contesting claimants for the seat, out of a list of forty-five, elected by ballot from the whole House. The other two were to be named, one each, by the contesting candidates. The Committee was empowered to examine papers, call and swear witnesses, and, in fact, to exercise all the authority previously wielded by the whole House. It was opposed by Welbore Ellis, Rigby, Dyson, and Charles James Fox, not yet broken from his office shell into a full-fledged patriot. It was, however, carried, and being supported in the Lords by Lord Mansfield, who on this occasion manifested an unusual disregard of his party principles, it was passed there too. Email : support@yourdomain.com  |  Download Software / App  |  Call : +61-123-456-789
ONE:When these arrangements became known, the Tory party grew dreadfully exasperated. But not the Tories onlythere were throngs of Whigs who had battled zealously for the same object, and with the same hope of personal benefit, and yet they were passed over, and Pulteney, Carteret, and their immediate coterie had quietly taken care of themselves, and thrown their coadjutors overboard. A meeting was appointed between Pulteney and the rest already in office, and the Duke of Argyll, Chesterfield, Cobham, Bathurst, and some others. The Prince of Wales was present, and the different claims were discussed. Argyll was satisfied by being made Master-General of the Ordnance, Colonel of His Majesty's Royal Regiment of Horse Guards, Field-Marshal and Commander-in-Chief of all the forces in South Britain. Chesterfield got nothing, professing to wait to see a more thorough change of men before he went amongst them; but Cobham was made a Field-Marshal, and restored to the command of the Grenadier Guards, but he could get nothing for his nephew, the fiery Oppositionist, Lyttelton. Lord Harrington was made an Earl and President of the Council. But what surprised the country most was that Pulteney, hitherto the head and soul of the party, should have been content to sacrifice himself for the sake of a title. He was made Earl of Bath and received a place in the Cabinet; but by this change, although he seemed to have a brilliant career before him, he forfeited the confidence of the country, which had always looked up to him as the most determined and disinterested of patriots. From this moment he sank into insignificance and contempt. Some others of the old officials remained in as well as Newcastle. Sir William Yonge and Pelham, brother of Newcastle, retained their posts, Yonge as Secretary of War, and Pelham as Paymaster of the Forces.DUEL BETWEEN THE "GUERRIRE" AND THE "CONSTITUTION." (See p. 36.)
TWO: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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THREE:[295]
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ONE:On the Rhine there was a good deal of sharp fighting between the French and Austrians. General Bender had been compelled to surrender Luxembourg, on the 7th of July, and allowed to retire with his army of ten thousand men into Germany, on condition of not serving again till exchanged. There then remained little on either bank of the Rhine to restrain the advance of the French, except Mayence on the left bank, and Manheim and Düsseldorf on the right. Pichegru, in August, made himself master of both Düsseldorf and Manheim, and was advancing to the reduction of Heidelberg when he was met by old General Wurmser, and driven back to Manheim. He was, in fact, meditating treachery. Jourdain, who was advancing in another direction to co-operate with Pichegru in the reduction of Mayence, was encountered by Clairfait, and driven back to Düsseldorf. Clairfait then attacked the French forces already investing Mayence, and the garrison making a sally at the same time, the French were completely dispersed, and part retreated north and part south. Wurmser then invested Manheim, and compelled its surrender on the 22nd of November. Pichegru signed an armistice with the Austrians before joining them. Jourdain also retreated.
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THREE:SURRENDER OF LORD CORNWALLIS, YORK TOWN. (See p. 283.)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 tariffto 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 lessto 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 taxat least, if a temporary onewas 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.

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On the return of Wellington to the north, Beresford strictly blockaded Badajoz, and made all the preparations that he could for taking it by storm. But he was almost wholly destitute of tools for throwing up entrenchments, and of men who understood the business of sapping and mining. He was equally short of artillery, and the breaching-guns which he had, had no proper balls. The howitzers were too small for his shells, and he had few, if any, well-skilled officers of artillery. Besides this, the ground was very rocky, and the enemy, owing to their slow progress in the works, were able to make repeated sorties, so that they had killed four or five hundred of our men. In this situation, on the 12th of May, Beresford received the intelligence that Soult was advancing against him with nearly thirty thousand infantry and four thousand horse. Soult had been set at liberty to leave Seville by the conclusion of Graham's and Lape?a's expedition, and he had received reinforcements both from Sebastiani and from Madrid. Beresford immediately raised the siege, but instead of retiring he advanced against Soult to give him battle. Beresford had about twenty-five thousand infantry and two thousand cavalry, but unfortunately ten thousand of these were Spaniards, for Casta?os had joined him. Casta?os was one of the best and most intelligent generals of Spain, and had a mind so far free from the absurd pride of his countrymen that he was willing to serve under Beresford. Blake was also in his army with a body of Spanish troops; but Blake was not so compliant as Casta?os, and their troops were just as undisciplined as ever.The meeting of Parliament was approaching, and it was necessary to come to some final decision. Sir Robert Peel had a thorough conviction that if the Duke of Wellington should fail in overcoming the king's objections, no other man could succeed. It might have been that the high[294] and established character of Earl Grey, his great abilities, and great political experience, would have enabled him to surmount these various difficulties. In addition to these high qualifications, he had the advantage of having been the strenuous and consistent advocate of the Roman Catholic cause; the advantage also of having stood aloof from the Administrations of Mr. Canning and Lord Ripon, and of having strong claims on the esteem and respect of all parties, without being fettered by the trammels of any. Sir Robert Peel had, however, the strongest reasons for the conviction that Lord Grey could not have succeeded in an undertaking which, in the supposed case of his accession to power, would have been abandoned as hopeless by the Duke of Wellington, and abandoned on the ground that the Sovereign would not adopt the advice of his servants. The result of the whole is thus summed up by Sir Robert Peel:"Being convinced that the Catholic question must be settled, and without delay; being resolved that no act of mine should obstruct or retard its settlement; impressed with the strongest feelings of attachment to the Duke of Wellington, of admiration of his upright conduct and intentions as Prime Minister, of deep interest in the success of an undertaking on which he had entered from the purest motives and the highest sense of public duty, I determined not to insist upon retirement from office, but to make to the Duke the voluntary offer of that official co-operation, should he consider it indispensable, which he scrupled, from the influence of kind and considerate feelings, to require from me."
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