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THREE:[See larger version]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.
THREE:SIR RALPH ABERCROMBY. (After the Portrait by J. Hoppner, R.A.)
TWO:On the 3rd of May George received addresses at Carlton House, and on the 10th he held his first levee since his accession to the Throne, at which nearly eighteen hundred persons of distinction were present, who testified their attachment to his person in the most gratifying manner. The families of the great political party that formed and supported his Government affected to treat the queen's pretensions with a quiet disdain that evinced their confidence in the unbounded loyalty of the nation. But their eyes were soon opened; and in a few weeks Ministers sat abashed upon the Treasury benches as if conscious that they were driving the vessel of the Constitution upon a rock, subservient to the tyranny of their master. The Liberal party were vehement in their denunciations, and the leading Whigs, whether from policy or a sense of duty, came forward as the champions of the queen's rights. The people were all enthusiastic in her favour, and wild with excitement.
TWO:The Ministers and their supporters were complimentary, as a matter of course, to the new Sovereign, who had graciously continued them in their offices; and the Whigs, who had ascribed their exclusion from power to the personal dislike of the king, were resolved that there should not be again any obstacle of the kind, and that they would keep upon the best possible terms with the Court. During the previous part of the Session they had kept up a rapid fire of motions and questions upon the Government, especially with regard to the public expenditure, the distress of the operatives, and the necessity of rigid economy and large retrenchment. The attacks were led by Sir James Graham, who, though he was always left in a minority in the divisions on his motions, did much to weaken the Government by exciting public feeling against them on the ground of their alleged heartless extravagance, while many of the people were starving and the country was said to be going fast to destruction. The Duke of Wellington, however, moved an answer to the Royal Message, declaring that they would forward the measure necessary to provide for the temporary supply required. He suggested that as everybody would be occupied about the coming elections, the best mode of proceeding would be to dissolve at once. Lord Grey, in the name of the Opposition, complained of this precipitancy, and delivered a long speech full of solemn warnings of evil. He supposed that the king might die before the new Parliament was chosen; the Heir Apparent was[313] a child in fact, though not in law. No regency existing, she would be legally in the possession of her full regal power, and this was a situation which he contended would be fraught with danger. A long, unprofitable wrangle ensued, dull repetitions dragged out the debate, when at length the Duke wisely refused to accede to the proposition for a useless interval of delay, and proved the numerical strength of the Administration. Lord Grey having moved for an adjournment to allow time for providing a regency, the motion was lost by a majority of 44, the numbers being 56 against 100.FROM THE PAINTING BY CLARKSON STANFIELD, R.A., IN THE CORPORATION ART GALLERY, GUILDHALL.