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The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight.It was now the turn of the French to triumph, and of the Allies to suffer consternation. Louis, once more elate, ordered Te Deum to be sung in Notre Dame, and all Paris was full of rejoicing. He declared that God had given a direct and striking proof of the justice of his cause and of the guilty obstinacy of the Allies. His plenipotentiaries assumed at Utrecht such arrogance that their very lacqueys imitated them; and those of Mesnager insulted one of the plenipotentiaries, Count von Richteren, and Louis justified them against all complaints. In such circumstances, all rational hope of obtaining peace except on the disgraceful terms accepted by England vanished.
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THREE:Lord John Russell, who introduced the measure, Lord Althorp, Mr. Smith of Norwich, and Mr. Ferguson pleaded the cause of the Dissenters with unanswerable arguments. They showed that the Church was not now in danger; that there was no existing party bent on subverting the Constitution; that in the cases where the tests were not exacted during the last half century there was no instance of a Dissenter holding office who had abused his trust; that though the Test Act had been practically in abeyance during all that time, the Church had suffered no harm. Why, then, preserve an offensive and discreditable Act upon the Statute Book? Why keep up invidious distinctions when there was no pretence of necessity for retaining them? Why, without the shadow of proof, presume disaffection against any class of the community? Even the members of the Established Church of Scotland might be, by those tests and[266] penalties, debarred from serving their Sovereign unless they renounced their religion. A whole nation was thus proscribed upon the idle pretext that it was necessary to defend the church of another nation. It was asked, Did the Church of England aspire, like the Mussulmans of Turkey, to be exclusively charged with the defence of the empire? If so, let the Presbyterians and Dissenters withdraw, and it would be seen what sort of defence it would have. Take from the field of Waterloo the Scottish regiments; take away, too, the sons of Ireland: what then would have been the chance of victory? If they sought the aid of Scottish and Irish soldiers in the hour of peril, why deny them equal rights and privileges in times of peace? Besides, the Church could derive no real strength from exclusion and coercion, which only generated ill-will and a rankling feeling of injustice. The Established Church of Scotland had been safe without any Test and Corporation Acts. They had been abolished in Ireland half a century ago without any evil accruing to the Church in that country. It was contrary to the spirit of the age to keep up irritating yet inefficient and impracticable restrictions, which were a disgrace to the Statute Book.

By Elena Smith

THREE:For a moment Walpole appeared about to fall from his altitude, and the Jacobite faction was in ecstasies. The dispatch of Townshend, announcing the king's death in Germany, arrived in London on the 14th of June, and was soon followed by himself. Walpole instantly hastened to the palace of Richmond, where the Prince of Wales resided, and was told that the prince was taking his usual afternoon siesta. He desired that he might be awoke, in consequence of important intelligence. George, suddenly aroused, rushed forth half dressed to learn the urgent business, when Walpole knelt down and kissed his hand, informing him of his father's decease, and that he was king. George was at first incredulous, but Walpole produced Townshend's dispatch, and inquired whom his majesty would be pleased to appoint to draw up the necessary declaration to the Privy Council, trusting that it would be himself. To his consternation and chagrin the king said abruptly, "Compton;" and Walpole withdrew in deep vexation, imagining his own reign was at an end.This was a blow which for a time completely prostrated the Prussian monarch. Nothing but the most indomitable spirit and the highest military talent could have saved any man under such circumstances. But Frederick had disciplined both his generals and soldiers to despise reverses, and he relied on their keeping at bay the host of enemies with which he was surrounded till he had tried a last blow. On the field of Rosbach, near the plain of Lützen, where Gustavus Adolphus fell, after having relieved Marshal Keith at Leipsic, Frederick gave battle to the united French and Austrians. The French numbered forty thousand men, the Austrians twenty thousand; yet, with his twenty thousand against sixty thousand, Frederick, on the 5th of November, took the field. His inferior numbers favoured the stratagem which he had planned. After fighting fiercely for awhile, his troops gave way, and appeared to commence a hasty retreat. This, however, was continued only till the French and Austrians were thrown off their guard, when the Prussians suddenly turned, and received the headlong squadrons with a murderous coolness and composure. The Austrians, confounded, fled at once; and Soubise, a general of the princely House of Rohan, who owed his appointment to Madame Pompadour, was totally incapable of coping with the Prussian veterans. He saw his troops flying in wild rout, and galloped off with them, leaving a vast number of slain, seven thousand prisoners, and the greater part of his baggage, artillery, and standards in the hands of the enemy.

By Elena Smith

But the subject was not so easily disposed of. Colonel Barr, in the House of Commons, only three days after Burke introduced his great motion, declared that Burke's measure did not go far enough; that Burke did not mean to interfere with the enormous pensions and overpaid places already in possession; and that he would himself introduce a motion for a Committee of Accounts, to probe all these depths of corruption, and to examine into the army extravagances, which were excessive, and to him unaccountable. Lord North, so far from opposing this motion, declared his surprise that no one had thought of introducing it before, and that he was extremely anxious himself for the reduction of all needless expenditure. The Opposition expressed their particular satisfaction; but they were rather too precipitate, for North made haste to get the business into his own hands; and, on the 2nd of March, was ready with a Bill of his own framing. The Opposition were lost in astonishment; and Barr denounced this perfidious conduct in the Minister in terms of just indignation. The whole Opposition, who found themselves outwitted, declared that the scheme, so far from being intended to relieve the country, was meant to shield existing abuses, and they accordingly resisted it to the utmost. North, however, by his standing majority of myrmidons, carried the Bill through the House; and Sir Guy Carleton, late Governor of Canada, and five others, were appointed Commissioners. Thus the whole motion was in reality shelved.[473]PRINCE CHARLES EDWARD STUART (THE "YOUNG PRETENDER"). (After the Portrait by Tocque, 1748.)[16]
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