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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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ATTACK ON THE CHINESE JUNKS. (See p. 474.)[See larger version]

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TWO:The first transactions of the campaign of 1795 which demand our attention, are those of Holland. To the British army these were most disastrous, and came to an end before the winter closed. The Duke of York had returned to England early in December, 1794, leaving the chief command to General Walmoden, a Hanoverian, second to whom was General Dundas. Walmoden had gone quietly into winter quarters in the isle of Bommel, forgetting that the firmness of the ice would soon leave him exposed with his small force to the overwhelming swarms of the French, under Pichegru, who, in the middle of December, crossed the Waal with two hundred thousand men, and drove in his lines. General Dundas advanced against him with eight thousand men, and, for the time, drove the French back, on the 30th of December, across the Waal. But this could not last with such disproportionate forces, especially as our troops were left with the most wretched commissariat, and an equally wretched medical staff; in fact, there were neither surgeons to attend the greater part of the wounded, nor medicines for the sick. On the 4th of January, 1795, the French came back with their overpowering numbers, and on the 6th the British were compelled to retire across the Leck, and continue their retreat, suffering indescribable miseries from the want of food, tents, and proper clothes, in the horrors of a Dutch winter. Notwithstanding this, the British repeatedly turned and drove back the enemy with heavy slaughter. But on the 11th of January Pichegru attacked them in a defile between Arnhem and Nimeguen, with a condensed force of seventy thousand men, and took every measure to destroy, or compel the surrender of, the whole British army. They, however, fought their way through and continued their march for the Elbe, the only quarter open to them. During this retreat they were less harassed by the French, who fell off to occupy Utrecht and Rotterdam, than by the fury of the winter and the hostility of the Jacobinised Dutch, who cursed them as the cause of all the sufferings of their country. Such was the end of Britain's campaign for the defence of her Dutch allies. Holland was proclaimed a free Republic under the protection of France, and Britain immediately commenced operations for indemnifying herself, by seizing the ships and colonies of her late ally in every quarter of the globe. They intercepted the homebound Dutch Indiamen, and when the Council of Government sent deputies to London to reclaim them, Lord Grenville, the Foreign Minister, asked them in what character they came. They replied, that they came as representatives of the sovereign people of Batavia. The Foreign Minister said he knew of no such Power, and declined to receive them. No time was lost in seizing the Dutch colonies and factories. On the 14th of July Admiral Sir G. Keith Elphinstone appeared in Table Bay, and landed a considerable force under command of Major-General Craig. They possessed themselves of Simon's Town and the strong fort of Muyzenberg, and in the beginning of September, being reinforced by another body of troops, under Major-General Alured Clarke, on the 23rd of that month they were masters of Cape Town. A similar activity was displayed in the East Indies; and in the course of the year, or early in 1796, all the Dutch possessions in Ceylon, Malacca, Cochin, Amboyna, and other places were surrendered to the British. The same seizures were in course of execution on the settlements of the Dutch in the West Indies, and on the coast of South America.

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THREE:Yet, looking at Spain from a mere momentary point of view, its condition was sad enough. Saragossa had undergone a second siege, in which the inhabitants had again made a brilliant stand, and caused the French much loss and suffering, though compelled at length to surrender. The battle of Oca?a, in November of 1809, had been lost by Areizaga, and left Spain without a single considerable army. During the latter part of the same year, General Reding, the patriotic Swiss general, had been defeated at Valls. Blake had sustained two heavy defeats near Saragossa and Belchite, with the loss of the greater part of his artillery and men. Gerona had withstood a desperate siege, but was compelled to capitulate on the 10th of December. Tarragona and Tortosa had suffered the same fate. In some of these towns the Spaniards had not yielded till they had killed and eaten their horses and mules.

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THREE:She continued till nearly the last to hide from the surgeons the real cause of her sufferings, and was treated by the medical men for gout in the stomach. When the secret was at length disclosed, it was too late; though one of the surgeons declared that, if they had been informed two days earlier, they could have saved her.

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THREE:SURRENDER OF THE PEISHWA. (See p. 141.)

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TWO:The rest of the Speech consisted of endeavours to represent the country as in a prosperous condition; to have escaped from insurrection by the vigilance of Ministers, and to have recovered the elasticity of commerce. No amendment was moved to the Address in either House, but not the less did the conduct of Ministers escape some animadversion. In the Peers, Lord Lansdowne ridiculed the alarms which had been raised regarding the movements in Derbyshire, which, he said, had not been at all participated in by the working population at large, and had been put down by eighteen dragoons. He contended that there was no evidence of any correspondence with these conspirators in other quarters; but this was notoriously incorrect, for there had been a correspondence in Lancashire and Yorkshire, a[132] correspondence especially disgraceful to Ministers, for it was on the part of their own incendiary agents. He observed truly, however, that the insurrection, as it was called, had by no means justified the suspension of the Habeas Corpus Act, for it could have been most readily put down without it by the regular course of law. In the Commons, Sir Samuel Romilly thought that the Derbyshire insurrectionists had been very properly brought to trial; for Brandreth had committed a murder, and, therefore, those who acted with him were, in the eye of the law, equally guilty. But if they were properly brought to trial, there were others who ought still more properly to have been brought to trial toothe very men whom Government had sent out, and who had aroused these poor people into insurrection by false and treacherous statements. There was no justice in trying and punishing the victims, and screening their own agents; and this was what Government had done, and were still doing. It is in vain, therefore, that their defenders contend that they gave no authority to Oliver and the other spies to excite the people to outbreak: these spies having notoriously done it, they still protected and rewarded them, and thus made themselves responsible for their whole guilt. If they had not authorised the worst part of the conduct of the spies, they now acted as though they had, and thus morally assumed the onus of these detestable proceedings. One thing immediately resulted from the p?ans of Ministers on the flourishing state of the countrythe repeal of the Suspension Act. The Opposition at once declared that if the condition of the country was as Ministers described it, there could be no occasion for the continuance of this suppression of the Constitution; and accordingly a Bill for the repeal of the Suspension Act was at once brought in and passed by the Lords on the 28th, and by the Commons on the 29th of January."The Clare election supplied the manifest proof of an abnormal and unhealthy condition of the public mind in Irelandthe manifest proof that the sense of a common grievance and the sympathies of a common interest were beginning to loosen the ties which connect different classes of men in friendly relations to each other, to weaken the force of local and personal attachments, and to unite the scattered elements of society into a homogeneous and disciplined mass, yielding willing obedience to the assumed authority of superior intelligence hostile to the law and to the Government which administered it. There is a wide distinction (though it is not willingly recognised by a heated party) between the hasty concession to unprincipled agitation and provident precaution against the explosion of public feeling gradually acquiring the strength which makes it irresistible. 'Concede nothing to agitation,' is the ready cry of those who are not responsiblethe vigour of whose decisions is often proportionate to their own personal immunity from danger, and imperfect knowledge of the true state of affairs. A prudent Minister, before he determines against all concessionagainst any yielding or compromise of former opinionsmust well consider what it is that he has to resist, and what are his powers of resistance. His task would be an easy one if it were sufficient to resolve that he would yield nothing to violence or to the menace of physical force. In this case of the Clare election, and of its natural consequences, what was the evil to be apprehended? Not force, not violence, not any act of which law could take cognisance. The real danger was in the peaceable and legitimate exercise of a franchise according to the will and conscience of the holder. In such an exercise of that franchise, not merely permitted, but encouraged and approved by constitutional law, was involved a revolution of the electoral system in Irelandthe transfer of political power, so far as it was connected with representation, from one party to another. The actual transfer was the least of the evil; the process by which it was to be effectedthe repetition in each county of the scenes of the Clare electionthe fifty-pound free-holders, the gentry to a man polling one way, their alienated tenantry anotherall the great interests of the county broken down'the universal desertion' (I am quoting the expressions of Mr. Fitzgerald)the agitator and the priest laughing to scorn the baffled landlordthe local heaving and throes of society on every casual vacancy in a countythe universal convulsion at a general electionthis was the danger to be apprehended; those were the evils to be resisted. What was the power of resistance? 'Alter the law, and remodel the franchise,' was the ready, the improvident response. If it had been desired to increase the strength of a formidable confederacy, and, by rallying round it the sympathies of good men and of powerful parties in Great Britain, to insure for it a signal triumph, to extinguish the hope of effecting an amicable adjustment of the Catholic question, and of applying a corrective to the real evils and abuses of elective franchise, the best way to attain these pernicious ends would have been to propose to Parliament, on the part of the Government, the abrupt extinction of the forty-shilling franchise in Ireland, together with the continued maintenance of civil disability."

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THREE:

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THREE:Wolfe, meanwhile, had reached the St. Lawrence in June, on board a fleet commanded by Admiral Saunders. The navigation of that river was considered very dangerous, but in ascending they captured two small store-ships, and found on board some excellent charts of the river, which enabled the admiral to ascend safely. On the 27th of June the army was landed on the Isle of Orleans, in the middle of the St. Lawrence, in front of Quebec.

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TWO:Amongst the most distinguished persons captured were Lords Kilmarnock, Cromarty, Balmerino, Mordington, and Lovat. Cromarty, Balmerino, and Kilmarnock were brought to trial before the peers in Westminster Hall on the 28th of July. "Cromarty," says Horace Walpole, "was a timid man, and shed tears; and Kilmarnock, though behaving with more dignity, pleaded guilty, both expressing remorse for their past conduct, and their fervent good wishes for the person and government of the king." But old Balmerino, the hero of the party, pleaded not guilty, and took exceptions to the indictment. "He is," writes Walpole, "the most natural, brave old fellow I ever saw; the highest intrepidity, even to indifference." All these noblemen were pronounced guilty. Cromarty pleaded piteously the condition of his wife and family: that he left his wife enceinte, and eight innocent children to suffer for his fault. His wife's entreaties and the interest of the Prince of Wales saved him; Kilmarnock and Balmerino were beheaded.

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[See larger version][See larger version]France and England being already agreed, independently of the consent of the rest of the Allies, the conference began on a basis which was sure to lead to immediate confusion and contention. The Dutch plenipotentiaries were astonished to see the different tone displayed by the French ambassadors. They were no longer the humble personages that they had been at Gertruydenberg. The Abb Polignac, who was the chief speaker, assumed a high and confident manner. The French envoys, therefore, when the Dutch deputies demanded that the treaty should be carried out on the basis of the terms offered at Gertruydenberg, told them plainly that matters were now quite altered, and that the conditions offered at Gertruydenberg could not be entertained by France at all, but those to which the Queen of England had agreed in London; that unless the Dutch were willing to treat on these conditions, they would find their allies concluding peace without them, and that on the spot. The chief article to which the Allies objected was the concession of Spain to Philip; and they were the more resolute because it had become imminently necessary from changes that had now taken place in France. The Dauphin had died of the smallpox during the last year. The title had been conferred on his son, the Duke of Burgundy; but the Duke of Burgundy had just expired, too, in the sixth year of his age; and of the Dauphin's children there only now remained the Duke of Anjou, a sickly child of two years old. This child was the only remaining obstacle to Philip, the King of Spain, mounting the throne of France. The danger was so obvious of the union of France and Spain in a very few yearsto prevent which had been the object of the warthat the English Government was compelled to demand from Philip a distinct renunciation of all claims on the French Crown, and from France as distinct a one in the treaty that any such claim should be resisted. St. John entered into a correspondence with De Torcy, the French minister, on this point; and the answers of De Torcy must have shown the English Government how useless it was to attempt to bind Frenchmen on such matters. He replied that any renunciation on the part of Philip or any French prince would be utterly null and void according to the laws; that on the king's death the next heir male of the royal blood succeeded, independently of any disposition or restriction of the late king, or any will of the people, or of himself, even; that he was, by the laws of France, sovereign by right of succession, and must be so, in spite of any circumstances to the contrary; that neither himself, the throne, nor the people had anything to do with it, but to obey the constitution. Therefore, even if Philip did bind himself to renounce the Crown of France, should the present Dauphin die, he would be king, independently of any circumstances whatever. Another expedient, however, was proposed by the English ministry, who must have seen clearly enough the folly of their treating on such hollow ground. That was, if Philip did not like to renounce the Crown of France, he should at once quit the throne of Spain, and agree that the Duke of Savoy should take it and the Indies, surrendering his own territories to Philip, to which should be added Naples, Sicily, Montserrat, and Mantua, all of which, whenever Philip succeeded to the French Crown, should be annexed to France, with the exception of Sicily, which should be made over to Austria. Louis XIV. professed to be delighted with this arrangement, but Philip would not listen to it, showing plainly that he meant, notwithstanding any renunciation, to retain his claim to both France and Spain.LORD CLIVE. (After the Portrait by Gainsborough.)[See larger version]
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