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At the point at which our former detail of[316] Indian affairs ceased, Lord Clive had gone to England to recruit his health. He had found us possessing a footing in India, and had left us the masters of a great empire. He had conquered Arcot and other regions of the Carnatic; driven the French from Pondicherry, Chandernagore, and Chinsura; and though we had left titular princes in the Deccan and Bengal, we were, in truth, masters there; for Meer Jaffier, though seated on the throne of Bengal, was our mere instrument.The distress which had pressed so severely on the people, and which had set them thinking about the most perilous political changes, was intimately connected with the state of the country. Throughout the troubled period of almost incessant war and lavish expenditure between 1797 and 1815, the business of the nation was carried on with an inconvertible paper currency, the precious metals having nearly all departed from the country. Bank notes were issued in such quantities, to meet the exigencies of the Government, that the prices of all commodities were nearly doubled. The Bill which was passed in 1819 providing for the resumption of cash payments had reduced the currency from 48,278,070, which was its amount in 1819, to 26,588,000, in 1822. The consequence was the reduction of prices in the meantime, at the rate of fifty per cent., in all the articles of production and commerce. With this tremendous fall of prices, the amount of liabilities remained unchanged; rents, taxes, and encumbrances were to be paid according to the letter of the contract, while the produce and commoditiesthe sale of which was relied upon to pay themdid not produce more than half the amount that they would have brought at the time of the contracts. The evil of this sudden change was aggravated by the South American Revolution, in consequence of which the annual supply of the precious metals was reduced to a third of its former amount. It was peculiarly unfortunate that this stoppage in the supply of gold and silver occurred at the very time that the Legislature had adopted the principle that paper currency should be regarded as strictly representing gold, and should be at any moment convertible into sovereigns. A paper currency should never be allowed[238] to exceed the available property which it represents, but it is not necessary that its equivalent in gold should be lying idle in the coffers of the Bank, ready to be paid out at any moment the public should be seized with a foolish panic. It is enough that the credit of the State should be pledged for the value of the notes, and that credit should not be strained beyond the resources at its command. The close of 1822 formed the turning-point in the industrial condition of the country. The extreme cheapness of provisions, after three years of comparative privation, enabled those engaged in manufacturing pursuits to purchase many commodities which they had hitherto not been able to afford. This caused a gradual revival of trade, which was greatly stimulated by the opening of new markets for our goods, especially in South America, to which our exports were nearly trebled in value between 1818 and 1823, when the independence of the South American Republics had been established. The confidence of the commercial world was reassured by the conviction that South America would prove an unfailing Dorado for the supply of the precious metals. The bankers, therefore, became more accommodating; the spirit of enterprise again took possession of the national mind, and there was a general expansion of industry by means of a freer use of capital, which gave employment and contentment to the people. This effect was materially promoted by the Small Note Bill which was passed in July, 1822, extending for ten years longer the period during which small notes were to be issued; its termination having been fixed by Peel's Bill for 1823. The average of bank-notes in circulation in 1822 was 17,862,890. In November of the following year it had increased by nearly two millions. The effect of this extension of the small note circulation upon prices was remarkable. Wheat rose from 38s. to 52s., and in 1824 it mounted up to 64s. In the meantime the bullion in the Bank of England increased so much that whereas in 1819 it had been only 3,595,360, in January, 1824, it amounted to 14,200,000. The effect of all these causes combined was the commencement of a reign of national prosperity, which burst upon the country like a brilliant morning sun, chasing away the chilling fogs of despondency, and dissipating the gloom in the popular mind.
ONE:But Ministers were too sensible of the unconstitutional character of their deeds to rest satisfied with the mere justification of an accepted report. A Bill of Indemnity was introduced to cover "all persons who had in 1817 taken any part in apprehending, imprisoning, or detaining in custody persons suspected of high treason, or treasonable practices, and in the suppression of tumultuous and unlawful assemblies." Thus Ministers were shielded under general terms, and to avoid all appearance of personal movement in this matter by those in the Cabinet the most immediately active, the Bill was introduced by the Duke of Montrose, the Master of the Horse.

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TWO:THOMAS MOORE.On the other hand, Barclay de Tolly, anxious to unite with Bagration and reach Smolensk, abandoned the strong encampment at Drissa, leaving Wittgenstein near there to watch the enemy and cover the road to St. Petersburg. The French pursued him with great rapidity, which, though it endangered his immediate union with Bagration at Vitebsk, yet served the Russian policy of drawing the enemy into the interior. Murat continually rushed forward with his cavalry to attack the rear-guard of De Tolly; but the Russian infantry maintained steady order, and continually withdrew before him. Every evening he was close upon them; every morning he found himself again distanced. The Russians appeared in full vigour, and well supplied with everything; the French were sinking with famine and fatigue. At Polotsk the Emperor Alexander left De Tolly, and hastened on to Moscow to prepare the inhabitants for that grand catastrophe which he already foresaw, and had resolved upon.

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To such a pitch of folly and despotism had the Grafton Ministry been driven by the events of the Session of 1769, by their conduct towards the Americans and Wilkes. The Rockinghams and Grenvilles were combined against the Grafton Cabinet, and thus acquiring popularity at its expense. Lord Camden, though still retaining his place, utterly disapproved of their proceedings. The people everywhere held meetings to express their total loss of confidence in both the Ministers and Parliament, and to pray the king to dissolve the latter. In the autumn, the action of Wilkes against Lord Halifax, for the seizure of his papers, was tried, and the jury gave him four thousand pounds damages.Such was the state of things with which the Duke of Wellington had to deal as British plenipotentiary when he left London on his mission early in September, taking Paris on his way. There he had some interesting conferences with the king and his Minister. The latter could hold out no hope that France would fulfil her engagements as to the slave trade. He spoke, indeed, of their African settlements as useless to the French people, and proposed to make them over to Britain in exchange for the Isle of France; but farther than this he declined to go, because there were too many interests, both public and private, engaged to thwart his efforts, should he be so unwise as to make any. His language with regard to South America was not less vague and unsatisfactory. He stated that France had not entered into relations with those provinces in any form, and did not intend to do so till they should have settled their differences with Spain one way or another. M. de Villele did not add, as he might have done, that France was feeling her way towards the severance of Spain from her colonies, and towards the establishment in the New World of one or two monarchies, with younger branches of the House of Bourbon at their head."I well know that there are those upon whom such considerations as these to which I have been adverting will make but a faint impression. Their answer to all such appeals is the short, in their opinion the conclusive, declaration'The Protestant Constitution in Church and State must be maintained at all hazards, and by any means; the maintenance of it is a question of principle, and every concession or compromise is the sacrifice of principle to a low and vulgar expediency.' This is easily said; but how was Ireland to be governed? How was the Protestant Constitution in Church and State to be maintained in that part of the empire? Again I can anticipate the reply'By the overwhelming sense of the people of Great Britain; by the application, if necessary, of physical force for the maintenance of authority; by the employment of the organised strength of Government, the police and the military, to enforce obedience to the law.'"
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