ONE: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.Whilst this powerful confederacy was putting forth all its strength to drive from the seat of supremacy the man who had so long guided the fortunes of England, another confederacy was knitting together its selfish members to rend in pieces and share amongst them the empire of the young Queen of Austria. Frederick was willing enough to make a league with France, but he was cautious enough not to make it too soon. He wanted to know whether he could keep England out of the campaign, in which case he could deal easily with Austria himself. Walpole's attempts to prevent the war from becoming European, however, failed, and the treaty being signed with the Prussian king, Marshal Maillebois marched an army across the Rhine, and Belleisle and Broglie went with another. Maillebois pursued his course direct for Hanover, where George was drilling and preparing a number of troops, but in no degree capable of making head against the French. Panic-stricken at their approach, he made haste to come to terms, and agreed to a year's neutrality for Hanover, leaving Maria Theresa to her fate, and, moreover, engaging not to vote for the election of her husband, the Duke of Lorraine, to be Emperor. The news of this conduct of the King of England in the person of the Elector of Hanover, was received in Great Britain with the utmost indignation. Belleisle and De Broglie had, during this time, joined their forces to those of the old Elector of Bavaria, the constant enemy of Austria and the friend of France, and had marched into Austria. He took Linz, on the Danube, and commenced his march on Vienna. As this allied army approached Vienna, Maria Theresa fled with her infant son, afterwards Joseph II., into Hungary, her husband and his brother, Prince Charles of Lorraine, remaining to defend the city.[75] The Hungarians received their menaced queen with enthusiasm. She had done much since the recent commencement of her reign to win their affections. She had been crowned in the preceding month of June in their ancient capital, and had sworn to maintain their ancient constitution in all its force, and the people were fervent in their loyalty. When, therefore, she appeared before the Hungarian Parliament in Presburg with her son in her arms, and called upon that high-spirited nation to defend her against her perfidious and selfish enemies, the sensation was indescribable. All rose to their feet, and, drawing their swords half-way from the scabbard, they exclaimed, "Our lives and our blood for your majesty! We will die for our king, Maria Theresa!"
FORE:CHAPTER XVIII. REIGN OF GEORGE III. (continued).
FORE:ASSASSINATION OF COUNT LAMBERG. (See p. 579.)
