TWO: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."[See larger version]
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THREE:The members of the Government were scarcely less rejoiced at getting rid of the matter than the nation was at their defeat. The most thinking men of their party became greatly alarmed at the state of public feeling, and were in constant dread of a revolution. The most violent language was used by the democratic leaders, and the press abounded with libels against the Government, whose chief members were hooted and pelted as they passed through the streets. This alarming state of things had arrived at its height towards the end of September. The Duke of York, who was then at Brighton, was violent against the queen. He felt confident that the troops must be called out, and he thought he could trust them. On them alone he depended for the preservation of the Throne. The king, at this time, rarely showed himself to any of his subjects. His conduct was an excitement to popular hatred. Mr. W. H. Freemantle, who was well informed as to all that was going forward in the highest quarters, describes the condition of things in letters to the Duke of Buckingham. "You have no idea," he says, "of the state of the town. The funds fell to-day. As to the king forming a Government, after the resignation of all his present servants, with the avowed object of persecuting the queen, it would be impossible; it would be making her the popular object and throwing the country in a flame. Be assured that the king on[213] this subject is no less than mad!" "In the months of October and November," observes the Duke of Buckingham, "it became evident that the frenzy outside the Houses of Parliament was exerting its influence within its walls. The aspect of affairs looked blacker every hour." "Matters here are in a critical state," writes Lord Sidmouth to Mr. Bathurst on the 27th of October. "Fear and faction are actively and not unsuccessfully at work; and it is possible that we may be in a minority, and that the fate of the Government may be decided." Plumer Ward, in his diary, has this entry under date of November 2nd:"Called upon (Wellesley) Pole. He was at breakfast, and we had a long chat. He thought everything very badMinisters, Opposition, king, queen, countryand, what was more, no prospect of getting right. All ties were loosened. Insolence and insubordination out of doors; weakness and wickedness within. 'The Whigs,' he said, 'were already half Radicals, and would be entirely so if we did not give way.' I said his brother, the Duke of Wellington, felt this too, but would not give way nevertheless. Meantime, the king was as merry as a grig. At first he had been annoyed, but was now enjoying himself at Brighton."- Lorem ipsum dolor sit amet, consectetur adipiscing elit. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
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