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THREE:Prevented by the arrival of Daun from utterly destroying Dresden, though he had done enough to require thirty years of peace to restore it, Frederick marched for Silesia. Laudohn, who was besieging Breslau, quitted it at his approach; but the Prussian king, who found himself surrounded by three armies, cut his way, on the 15th of August, at Liegnitz, through Laudohn's division, which he denominated merely "a[140] scratch." He was instantly, however, called away to defend his own capital from a combined army of Russians under Todleben, and of Austrians under Lacy, another Irishman; but before he could reach them they had forced an entrance, on the 9th of October. The Russians, departing from their usual custom of plunder, touched nothing, but levied a contribution of one million seven hundred thousand dollars on the city. At Frederick's approach they withdrew.In the East Indies we this year sent over from Madras an army and reduced Batavia, the capital of the Dutch East India settlements, and the island of Java, as well as the small island of Madura, so that the last trace of the Dutch power was extinguished in the East, as it was at home by the domination of Buonaparte. In the West Indies we had already made ourselves masters of all the islands of France, Denmark, and Holland; and our troops there had nothing to do but to watch and keep down the attempts at insurrection which French emissaries continued to stir up in the black populations. We had some trouble of this kind in St. Domingo and in Martinique, where the negroes, both free and slaves, united to massacre the whites, and set up a black republic like that of Hayti. But the French settlers united with the English troops in putting them down, and a body of five hundred blacks, in an attempt to burn down the town of St. Pierre, were dispersed with great loss, and many were taken prisoners, and fifteen of them hanged.
THREE:The winter of 1836-7 was marked by great commercial activity, and a strong tendency to over-trading, chiefly on the part of the banks. The result was a reaction, and considerable monetary embarrassment. In the reckless spirit of enterprise which led to these consequences, the American houses took the lead. The American speculators indulged an inordinate thirst for gain by land jobs, and over-trading in British produce. The most remarkable examples of this were afforded by three great American houses in London, called "the three W.'s." From an account of these firms, published in June, 1837, it appeared that the amount of bills payable by them from June to December, was as follows: Wilson and Co.,[411] 936,300; Wigan and Co., 674,700; Wildes and Co., 505,000; total acceptances, 2,116,000. This was upwards of one-sixth of the aggregate circulation of the private and joint-stock banks of England and Wales, and about one-eighth of the average circulation of the Bank of England. The shipments to America by Wigan and Co. amounted to 1,118,900. The number of joint-stock banks that started into existence at this time was remarkable. From 1825 to 1833 only thirty joint-stock banks had been established. In that year the Charter of the Bank of England being renewed, without many of the exclusive privileges it formerly enjoyed, and the spirit of commercial enterprise being active, joint-stock banks began to increase rapidly. There was an average of ten new companies annually, till 1836, when forty-five of these establishments came into existence in the course of ten months. In Ireland there were ten started in the course of two years. The consequence of this greatly increased banking accommodation produced a wild spirit of commercial adventure, which collapsed first in America, where the monetary confusion was unexampledbankers, importers, merchants, traders, and the Government having been all flung into a chaos of bankruptcy and insolvency. This state of things in America had an immediate effect in England. Discounts were abruptly refused to the largest and hitherto most respectable houses of Liverpool and London. Trade, in consequence, became paralysed; prices suddenly dropped from thirty to forty per cent.; and the numerous share bubblesthe railway projects, the insurance companies, the distillery companies, the cemetery companies, the sperm oil, the cotton twist, zoological gardens, and other speculationswhich had floated on the pecuniary tide, all suddenly collapsed, and there was an end to the career of unprincipled adventurers. It is satisfactory, however, to observe that the sound commerce of the country soon recovered the shock thus given; and in less than two years the pecuniary difficulties had passed away. Commerce had resumed its wonted activity, and flowed steadily in legitimate channels. The American banks resumed payment, and the three great American houses, which had involved themselves to such an enormous extent, were enabled to meet all their liabilities.
THREE:On the retirement of Townshend, Walpole reigned supreme and without a rival in the Cabinet. Henry Pelham was made Secretary at War; Compton Earl of Wilmington Privy Seal. He left foreign affairs chiefly to Stanhope, now Lord Harrington, and to the Duke of Newcastle, impressing on them by all means to avoid quarrels with foreign Powers, and maintain the blessings of peace. With all the faults of Walpole, this was the praise of his political system, which system, on the meeting of Parliament in the spring of 1731, was violently attacked by Wyndham and Pulteney, on the plea that we were making ruinous treaties, and sacrificing British interests, in order to benefit Hanover, the eternal millstone round the neck of England. Pulteney and Bolingbroke carried the same attack into the pages of The Craftsman, but they failed to move Walpole, or to shake his power.[See larger version]
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