THREE:The enemy, meanwhile, were on the alert, trying, by their fleets and armies, to assail us in almost every quarter. In the very opening days of the yearat the very commencement of January, 1781the French made an attack on the island of Jersey. They had sent across the Channel a fleet carrying nearly two thousand men; but their ships met the common fortune that has ever attended invaders of Britain: they were scattered by tempests, many of them dashed on the rocks of those iron-bound shores, and some driven back to port. They managed, however, to land eight hundred men by night, and surprised the town of St. Helier's, taking prisoner its Lieutenant-Governor, Major Corbet, who thereupon thinking all lost, agreed to capitulate. But the next officer in command, Major Pierson, a young man of only twenty-five, refused to comply with so pusillanimous an order. He rallied the troops and encouraged the inhabitants, who fired on the French from their windows. The invaders, surrounded in the market-place, were compelled to surrender, after their commander, the Baron de Rullecourt, and many of his soldiers, were killed.[279] The gallant young Pierson was himself killed by nearly the last shot.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.
THREE:Meanwhile by the advice of Bute the king sent for Pitt. On the 27th of August he had an audience of the king at Buckingham House. Pitt, however, insisted on having in with him all, or nearly all, his old colleagues, and this was too much for the king; whilst not to have had them would have been too little for Pitt, who was too wise to take office without efficient and congenial colleagues. The king, nevertheless, did not openly object, but allowed Pitt to go away with the impression that he would assent to his demands. This was Saturday, and Pitt announced this belief to the Dukes of Devonshire and Newcastle, and the Marquis of Rockingham. But on Sunday Grenville had had an interview with the king, and finding that he considered Pitt's terms too hard, had laboured successfully to confirm him in that opinion. Accordingly, on Monday, at a second meeting, the king named the Earl of Northumberland, Lord Halifax, and George Grenville, for leading posts in the Cabinet, saying, "Poor George Grenville, he is your near relation, and you once loved him." Pitt said that it would not do, bowed and retired; the king saying, "My honour is concerned, and I must support it."Nelson fell about the middle of the action, and for hours it continued with terrible fury. Whole masses of ships lay jammed together, pouring into one another the most tremendous broadsides. When all was over, the vessels on both sides appeared mere ruins. Nineteen ships of the line were taken, but some of them were so battered that they were useless, and incapable of moving. Six or seven of the enemy's ships immediately went down or were burnt. The Spanish admiral, Gravina, was mortally wounded; the rear-admiral, Cisneros, was taken, and the French admiral, Villeneuve. The French and Spaniards, in the few ships which had escaped into Cadiz, seeing the helpless condition of many of the British vessels, made a sortie, and re-captured two of the prizes, and carried them into port. The Algeciras, another of the captured ships, was also rescued, and carried into Cadiz by her crew, who rose the next morning on the English lieutenant and prize party in charge of her during a gale, the English having taken off the hatches to give the Spaniards a chance for their lives, should she drive on shore. In the end, the prizes were found so riddled by shot that they were burnt; so that, with some of them running on shore in the gale, only four of the wholethree Spanish and one Frenchwere saved, and brought to England as trophies. But the French and Spanish navies might be said to be annihilated; and, whatever might happen on the Continent, for the remainder of Napoleon's career England was for ever put beyond his reach. Nelson had indeed finished his mission. He had revived all the maritime glory of the days of Drake and Blake, and shown that, with a man like him at the head of her fleet, Britain might sit on her ocean throne, and smile at the hostile efforts of a world combined to crush her.
THREE:The Parliament of England met on the 13th of October. Pitt, not without cause, assumed much merit from the successes of the year; and, in truth, so far as military matters went, rarely had this country reaped such fame. We had triumphed in every quarter of the world. In January came the news of the capture of Goree; in June, of Guadeloupe; in August, that of the victory of Minden; in September, of the victory off Lagos; in October, of the conquest of Quebec; in November, of Hawke's victory off Quiberon. Horace Walpole said, "victories came so thick, that every morning we were obliged to ask what victory there was, for fear of missing one." At the same time, the condition of our trade warranted the inscription afterwards placed on Chatham's monument in the Guildhall, that he caused commerce to flourish with war.