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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.

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Whilst this war was raging in Europe, and carrying its ramifications to the most distant regions of the world, Clive and Eyre Coote were extending the British Empire in India, and, in the case of Clive, with as much ability as Frederick of Prussia showed in enlarging his kingdom in Europe. Clive, in 1757, put down Surajah Dowlah, the Nabob of Bengal, and in June of that year defeated him at Plassey with a mere handful of men against his enormous host. He set up Surajah Dowlah's General-in-chief, Meer Jaffier, and hailed him Nabob of Bengal, Orissa, and Bahar. We claimed from Meer Jaffier two million seven hundred and fifty thousand pounds as the share of the Company, the fleet, and the army. Clive's own share was two hundred and fifty-four thousand pounds, and the shares of the members of the committee ran from twenty thousand to one hundred thousand pounds each. Besides this, it was stipulated that the French factories and effects should be given up to the English, and the French[177] never again allowed to enter Bengal. The territory surrounding Calcutta, within a given distance of the town, was to be granted them on zemindary tenure, the company paying the rent, like the other zemindars or landholders. Thus the British, who were before merely the tenants of a factory, became in reality the rulers of Bengal.The receipt of such proposals in England produced the utmost consternation in the Cabinet. Townshend, in an "absolutely secret" answer to Stanhope, expressed the concern both of himself and the Prince of Wales at the prospect of a rupture with the Czar, who would seize the British ships and subjects in Russia, and prohibit the supply of naval stores from his kingdom, and that especially at a crisis when England was threatened with an invasion from Sweden and a rising of the Jacobites. He did not deny that there was a great risk of both these kingdoms and the German empire being exposed to imminent danger by the designs of the Czar on the whole coast of the Baltic, a danger which he might, had he dared, truly have attributed to George's own deeds by offending Sweden, instead of uniting with it to counterbalance the Czar's plan of aggrandisement. Fortunately, the Czar was induced, by the combined remonstrances of Austria, Denmark, and Sir John Norris, to abandon his projects for the moment, at least in Germany, and to withdraw his troops from Mecklenburg. Skip to main content
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FORE:Leaving Mlas to complete the subjection of Italy, Suvaroff then turned his army towards Switzerland, where Massena had effectually opposed the Austrians under Bellegarde and Hotze, and defeated a Russian force under Korsakoff, sent to reinforce them. But Suvaroff found himself unable to unite with Korsakoff till after much fighting with Massena; and the two Russian generals retreated to Augsburg, leaving Massena master of Switzerland.

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FORE:The Emperor of Germany was delighted at the Spanish offer. He had always felt himself aggrieved by the conditions of the Quadruple Alliance. He was afraid of France, and hated George of England for his German policy. He had, moreover, embroiled himself with both England and Holland, by establishing at Ostend an East India Company, which was declared to be in violation of the Treaty of Westphalia, and was, at all events, regarded with particular jealousy by both England and Holland. This being the case, Ripperda, the envoy of Spain, a Dutch adventurer, who had been the tool of Alberoni, completed with ease a treaty with the Emperor at Vienna, which was signed on the 30th of April, 1725.

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FORE:Sir Robert Peel was sent for by the Queen. No difficulties were now raised about the Ladies of the Court, since the difficulty had been settled through the diplomacy of the Prince Consort and his well-intentioned, though pedantic, adviser, Baron Stockmar. In due time the following Administration was formed:First Lord of the Treasury, Sir Robert Peel; Lord Chancellor, Lord Lyndhurst; Chancellor of the Exchequer, Right Hon. H. Goulburn; President of the Council, Lord Wharncliffe; Privy Seal, Duke of Buckingham; Home Secretary, Sir J. Graham; Foreign Secretary, Earl of Aberdeen; Colonial Secretary, Lord Stanley; President of the Board of Control, Lord Ellenborough; President of the Board of Trade, Earl of Ripon; Secretary at War, Sir H. Hardinge; Treasurer of the Navy and Paymaster of the Forces, Sir E. Knatchbull. The Duke of Wellington was in the Cabinet without office. It was thus composed of thirteen members, but of these Wellington, Lyndhurst, Aberdeen, Stanley, and Graham were the only people of importance. Before the prorogation of Parliament on the 7th of October the Poor Law was continued until the end of the following July, and the financial deficit of 2,500,000 was provided for by the creation of 5,000,000 of new stock, half of which was devoted to the funding of Exchequer Bills.

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Whilst these proceedings were in agitation, the Tory and Jacobite party, which had at the king's accession appeared stunned, now recovering spirit, began to foment discontent and sedition in the public mind. They got the pulpits to work, and the High Church clergy lent themselves heartily to it. The mobs were soon set to pull down the meeting-houses of the Dissenters. Many buildings were destroyed, and many Dissenters insulted. They did not pause there, but they blackened the character of the king, and denied his right to the Crown, whilst the most fascinating pictures were drawn of the youth, and grace, and graciousness of the rightful English prince, who was wandering in exile to make way for the usurper. To such a length did matters go, that the Riot Act, which had been passed in the reign of Mary, and limited to her own reign, which was again revived by Elizabeth, and had never since been called into action, was now made perpetual, and armed with increased power. It provided that if twelve persons should unlawfully assemble to disturb the peace, and any one Justice should think proper to command them by proclamation to disperse, and should they, in contempt of his orders, continue together for one hour, their assembling should be felony without benefit of clergy. A subsequent clause was added, by which pulling down chapels or houses, even before proclamation, was made subject to the same penalties. Such is the Act in force at this day.[445]It was with this object that Mr. Pierce Mahony got up the celebrated "Leinster declaration," so called from the signature of Ireland's only duke. But the experiment served only to reveal the weakness of the moderate party, for after lying for signature in Latouche's Bank for two months, only forty-two names were attached to it within that period. When, however, the struggle between the two parties was on the point of having a bloody issue, the alarm spread through the ranks of moderate men on both sides, and the document rapidly received signatures. The declaration set forth that the disqualifying laws which affected Roman Catholics were productive of consequences prejudicial in the highest degree to the interests of Irelandthe primary cause of her povertythe source of political discontents and religious animositiesdestructive alike of social happiness and national prosperity. Unless the legislature should speedily apply a remedy to those evils, they must in their rapid progression assume such a character as would, perhaps, render their removal impossible. It was stated, therefore, to be a matter of paramount importance that the whole subject should be taken into immediate consideration by Parliament, "with a view to such a final conciliatory adjustment as may be conducive to the peace and strength of the United Kingdom, to the stability of our national institutions, and to the general satisfaction and concord of all classes of his Majesty's subjects."Scotland, before the Reform Bill, was ruled by an oligarchy. The population was two millions and a half, the constituency was only 2,500. The power was to be taken from this small junto, and extended to the great middle class of that intelligent and loyal people. In Ireland, a host of rotten boroughs, some without any constituency at all, was to be swept away. The general result would be an increase for the United Kingdom of half a million electors, making the whole number enjoying the franchise 900,000. Of these 50,000 would be found in the new towns, created into Parliamentary boroughs in England, 110,000 additional electors in boroughs already returning members. For instance, London would have[331] 95,000; the English counties, 100,000; Scotland, 60,000; Ireland, 40,000. The House would consist in all of 596 members, being a reduction of sixty-two on the existing number of 658. The number of seats abolished was 168, which reduced the House to 490. Five additional members were given to Scotland, three to Ireland, one to Wales, eight to London, thirty-four to large English towns, and fifty-five to English counties.
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