CHAPTER VIII. REIGN OF GEORGE III. (continued).There was no difficulty in these negotiations as to the full and entire recognition of the independence of the States. The difficult points were but twoone regarding the fishery, and the other regarding the interests of the Royalists or Tories. The British Commissioners stood out strongly for the free permission of all who had been engaged in the war on the English side to return to their homes, and for the restitution of all property confiscated in consequence of such partisanship. The American Commissioners endeavoured to meet this demand by saying the recommendations of Congress would have all the effect that the English proposed. This the Commissioners regarded as so many words, and they insisted so determinedly on this head, that it appeared likely the negotiation would be broken off altogether. At last Franklin said they would consent to allow for all losses suffered by the Royalists, on condition that a debtor and a creditor account was opened, and recompense made for the damages done by the Royalists on the other side; commissioners to be appointed for the purpose of settling all those claims. The English envoys saw at once that this was a deception, that there would be no meeting, or no use in meeting, and they therefore abandoned the point; and the question of the fishing being in part conceded, the provisional articles were signed on the 30th of November, by the four American Commissioners on the one side, and by Mr. Oswald on the other. In the preamble it was stated[298] that these articles were to be inserted in, and to constitute, a treaty of peace, but that the treaty was not to be concluded until the terms of peace had also been settled with France and Spain.
[See larger version]Mr. Williams, made Baron of the Exchequer 3,300Walpole, however, continued to oppose the South Sea Bill in the Commons, declaring that the terms were too extravagant ever to be fulfilled; that the experiment could result in nothing but a fearful increase of the costs of stockjobbing, and final confusion and ruin. He insisted that, before the proposals of the Company were accepted,[47] the rise of their stock should be limited, and every means taken to prevent the fever of infatuation that would ensue from the promise of dividends out of funds which could never be realised. He proposed for this purpose the introduction of a clause fixing the number of years' purchase to be granted to the annuitants of the South Sea Company; but to this it was objected that it was the interest of the Company to take up the annuities; and, as the annuitants had the power of coming in or not, as they pleased, the Company would, of course, offer advantageous terms, and, therefore, the whole affair might be safely left to private adjustment. Aislabie added that the South Sea Company would not submit to be controlled in an undertaking they were to pay so dear for. The Bill passed both Houses."The disease by which the plant has been affected has prevailed to the greatest extent in Ireland.Meer Cossim, for a time, served their purpose. They obtained, as the price of his elevation, a large sum of money and an accession of territory. But he was not a man of the obsequious temper of Meer Jaffier. He removed his court from Moorshedabad to Monghyr, two hundred miles farther from Calcutta. He increased and disciplined his troops; he then made compulsory levies on the English traders, from which they had always claimed exemption. There was a loud outcry, and a determined resistance on the part of the English; but Meer Cossim not only continued to compel them to pay the same revenue dues as others, but imprisoned or disgraced every man of note in his dominions who had ever shown regard to the English. It was clear that he chafed under the impositions of his elevators, and meant to free himself from them and their obligations together. It was in vain that the English Council in Calcutta uttered warning and remonstrance; there was the most violent controversy between the English factory at Patna and Meer Cossim. Vansittart hastened to Monghyr, to endeavour to arrange matters with Cossim. He consented to the payment, by the English, of the inland revenue to the amount of nine per cent.; and on his part he accepted a present for himself from Cossim of seven lacs of rupees, or upwards of seventy thousand pounds. But on this occasion, though Vansittart had pocketed this large bribe from Meer Cossim, the council in Calcutta, who got nothing, voted the terms most dishonourable, and sent a fresh deputation to Cossim at Monghyr. This deputation was headed by Mr. Amyott; but as it went to undo what Vansittart had just done, Cossim, who saw no end of exactions, and no security in treating with the English, caused his troops to fall on the unfortunate deputation as they passed through Moorshedabad, and they were all cut to pieces. Here was an end to all agreement with this impracticable man, so the Council immediately decreed the deposition of Meer Cossim, and the restoration of the more pliant puppet, Meer Jaffier.In the course of this commercial madness the imports greatly exceeded the exports, and there was consequently a rapid drain of specie from the country. The drain of bullion from the Bank of England was immense. In August, 1823, it had 12,658,240, which in August, 1825, was reduced to 3,634,320, and before the end of the year it ran as low as 1,027,000. Between July, 1824, and August, 1825, twelve millions of cash were exported from Great Britain, chiefly to South America. During the Revolutionary war, which had lasted for fourteen years, the capital of the country had been completely exhausted, while all productive labour had been abandoned. The unworked mines were filled with water. They were accessible, it is true, to English speculators, but they were worked exclusively with English capital. The South American mining companies were so many conduits through which a rapid stream of gold flowed from Great Britain. The catastrophe that followed took the commercial world by surprise; even the Chancellor of the Exchequer failed to anticipate the disaster. On the contrary, his Budget of 1825 was based upon the most sanguine expectations for the future, and on the assurance that the public prosperity was the very reverse of what was ephemeral and peculiar, and that it arose from something inherent in the nation. Even at the prorogation of Parliament in July, the Royal Speech referred to the "great and growing" prosperity on which his Majesty had the happiness of congratulating the country at the beginning of the Session. The commercial crisis, however, with widespread ruin in its train, was fast coming upon Britain. Vast importations, intended to meet an undiminished demand at high prices, glutted all the markets, and caused prices to fall rapidly. Merchants sought accommodation from their bankers to meet pressing liabilities, that they might be enabled to hold over their goods till prices rallied. This accommodation the bankers were unable to afford, and sales were therefore effected at a ruinous loss. The South American mines, it was found, could not be worked at a profit, and they made no return for the twenty million pounds of British money which they had swallowed up. The effect was a sudden contraction of the currency, and a general stoppage of banking accommodation. The country banks, whose issues had risen to 14,000,000, were run upon till their specie was exhausted, and many of them were obliged to stop payment. The Plymouth Bank was the first to fail, and in the next three weeks seventy banks followed in rapid succession. The London houses were besieged from morning to night by clamorous crowds, all demanding gold for their notes. Consternation spread through all classes. There was a universal pressure of creditors upon debtors, the banks that survived being themselves upon the edge of the precipice; and the Bank of England itself, pushed to the last extremity, peremptorily refused accommodation even to their best customers. Persons worth one hundred thousand pounds could not command one hundred pounds; money seemed to have taken to itself wings and fled away, reducing a state of society in the highest degree artificial almost to the condition of primitive barbarism, which led Mr. Huskisson to exclaim, "We were within twenty-four hours of barter."
