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THREE:Warren Hastings had saved Madras and the Carnatic, but only at the cost of extortion. To obtain the necessary money, he began a system of robbery and coercion on the different princes of Bengal and Oude. The first experiment was made on Cheyte Sing, the Rajah of Benares, who had been allowed to remain as a tributary prince when that province was made over to the British by the Nabob of Oude. The tribute had been paid with a regularity unexampled in the history of India; but when the war broke out with France, Hastings suddenly demanded an extraordinary addition of fifty thousand pounds a year, and as it was not immediately paid, the Rajah was heavily fined into the bargain. This was rendered still more stringent in 1780, when the difficulties in Madras began. Cheyte Sing sent a confidential agent to Calcutta, to assure Hastings that it was not in his power to pay so heavy a sum, and he sent him two lacs of rupees (twenty thousand pounds), as a private present to conciliate him. Hastings accepted the money, but no doubt feeling the absolute need of large sums for the public purse, he, after awhile, paid this into the treasury, and then said to Cheyte Sing that he must pay the contribution all the same. He compelled the Rajah to pay the annual sum of fifty thousand pounds, and ten thousand pounds more as a fine, and then demanded two thousand cavalry. After some bargaining and protesting, Cheyte Sing sent five hundred horsemen and five hundred foot. Hastings made no acknowledgment of these, but began to muster troops, threatening to take vengeance on the Rajah. In terror, Cheyte Sing then sent, in one round sum, twenty lacs of rupees (two hundred thousand pounds) for the service of the State; but the only answer he obtained for the munificent offering was, that he must send thirty lacs more, that is, altogether, half a million.THE ATTACK ON THE "VILLE DE PARIS." (See p. 292.)

FORE:In the south-east of Spain the motley army of British and Sicilians had done sufficient to keep the attention of Suchet engaged, so that he could not quit that post to follow and assist Soult against the main British army. Lord Wellington had instructed Sir George Murray to embark his troops at Alicante, and, sailing to Tarragona, endeavour to make himself master of it; if he found the French too strong in that quarter to enable him to effect his purpose, he was to re-embark, return to Valencia, and then attack the French lines on the Xucar before Suchet could make the long march which would be necessary to support them. Murray had had his army weakened by the withdrawal of two thousand troops by Lord William Bentinck, very unnecessarily, to Sicily; but he undertook these man?uvres, and might have succeeded in capturing Tarragona, but, alarmed at a rumour of Suchet and General Mathieu having combined their forces, and being in march against him, he abandoned the place panic-stricken, and, in spite of the indignant remonstrances of Admiral Hallowell, embarked his troops in the utmost precipitation. Lord William Bentinck arrived on the 17th of June, immediately after the embarkation, but not in time to save nineteen pieces of artillery, which Murray had abandoned in the trenches. Lord Bentinck battered down Fort Balaguer, and then sailed away to Alicante, leaving the Spanish general exposed to the enemy, but he saved himself by escaping into the mountains. For this conduct, Sir George Murray on his return to England was tried by court-martial, and gently reprimanded, but nothing more. FORE:The distress which had pressed so severely on the people, and which had set them thinking about the most perilous political changes, was intimately connected with the state of the country. Throughout the troubled period of almost incessant war and lavish expenditure between 1797 and 1815, the business of the nation was carried on with an inconvertible paper currency, the precious metals having nearly all departed from the country. Bank notes were issued in such quantities, to meet the exigencies of the Government, that the prices of all commodities were nearly doubled. The Bill which was passed in 1819 providing for the resumption of cash payments had reduced the currency from ��48,278,070, which was its amount in 1819, to ��26,588,000, in 1822. The consequence was the reduction of prices in the meantime, at the rate of fifty per cent., in all the articles of production and commerce. With this tremendous fall of prices, the amount of liabilities remained unchanged; rents, taxes, and encumbrances were to be paid according to the letter of the contract, while the produce and commodities��the sale of which was relied upon to pay them��did not produce more than half the amount that they would have brought at the time of the contracts. The evil of this sudden change was aggravated by the South American Revolution, in consequence of which the annual supply of the precious metals was reduced to a third of its former amount. It was peculiarly unfortunate that this stoppage in the supply of gold and silver occurred at the very time that the Legislature had adopted the principle that paper currency should be regarded as strictly representing gold, and should be at any moment convertible into sovereigns. A paper currency should never be allowed[238] to exceed the available property which it represents, but it is not necessary that its equivalent in gold should be lying idle in the coffers of the Bank, ready to be paid out at any moment the public should be seized with a foolish panic. It is enough that the credit of the State should be pledged for the value of the notes, and that credit should not be strained beyond the resources at its command. The close of 1822 formed the turning-point in the industrial condition of the country. The extreme cheapness of provisions, after three years of comparative privation, enabled those engaged in manufacturing pursuits to purchase many commodities which they had hitherto not been able to afford. This caused a gradual revival of trade, which was greatly stimulated by the opening of new markets for our goods, especially in South America, to which our exports were nearly trebled in value between 1818 and 1823, when the independence of the South American Republics had been established. The confidence of the commercial world was reassured by the conviction that South America would prove an unfailing Dorado for the supply of the precious metals. The bankers, therefore, became more accommodating; the spirit of enterprise again took possession of the national mind, and there was a general expansion of industry by means of a freer use of capital, which gave employment and contentment to the people. This effect was materially promoted by the Small Note Bill which was passed in July, 1822, extending for ten years longer the period during which small notes were to be issued; its termination having been fixed by Peel's Bill for 1823. The average of bank-notes in circulation in 1822 was ��17,862,890. In November of the following year it had increased by nearly two millions. The effect of this extension of the small note circulation upon prices was remarkable. Wheat rose from 38s. to 52s., and in 1824 it mounted up to 64s. In the meantime the bullion in the Bank of England increased so much that whereas in 1819 it had been only ��3,595,360, in January, 1824, it amounted to ��14,200,000. The effect of all these causes combined was the commencement of a reign of national prosperity, which burst upon the country like a brilliant morning sun, chasing away the chilling fogs of despondency, and dissipating the gloom in the popular mind.