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A Commission had been appointed to inquire into the Department of Naval Affairs. The Commissioners, at whose head was Mr. Whitbread, had extended their researches so far back as to include the time when Lord Melville, as Mr. Dundas, had presided over that Department. They there discovered some very startling transactions. Large sums of money had been drawn out of the Bank of England on the plea of paying accounts due from the Naval Department; these sums had been paid into Coutts's Bank in the name of the Treasurer of the Navy, Mr. Trotter, who, for long periods together, used these sums for his own benefit. Other large sums had been drawn in the name of Dundas, and had been employed for his profit. Other sums had disappeared, and there was no account showing how they had vanished; but these were scored under the name of Secret Service Money, and Melville declared that the money paid into his account had gone in the same way. As much as forty-eight thousand pounds had been paid over to Pitt at once, and no account given of its expenditure. Indeed, as Pitt had nothing to do with that Department, the payment to him was altogether irregular. These discoveries created a great sensation. George Rose, who had begun life without a sixpence, but who, after attracting the attention of Pitt, had rapidly thriven and become extremely wealthy, had confessed to Wilberforce that some strange jobs had come under his notice as a member of that Department. There was a loud outcry for the impeachment of Melville. Melville appears to have been a jovial, hard-drinking Scotsman, of a somewhat infidel turn, according to Scottish philosophy of that period. Amongst Melville's faults, however, it does not appear that he was of an avaricious character, but rather of a loose morale, and ready to fall in with the licence practised by the officers of all departments of Government in the duties entrusted to them.

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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.In Ireland there was severe distress prevailing over an extensive district along the western coastno unusual visitation, for the peasantry depended altogether on the potato, a precarious crop, which sometimes failed wholly, and was hardly ever sufficient to last till the new crop came in. The old potatoes generally disappeared or became unfit for human food in June, and from that time till September the destitution was very great, sometimes amounting to actual famine. There was a partial failure of the crop in 1830, which, coupled with the rack-rents extorted by middlemen, gave to agitators topics which they used with effect in disquieting the minds of the peasantry.
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TWO:Had Benningsen had a good commissariat, the doom of the French was certain. The army, famishing and in rags, was still eager to push their advantage the next day, and the French, if compelled to retreat, as there was every prospect, must have fallen into utter demoralisation, and the war would have been soon at an end. But Benningsen, sensible that there was an utter lack of provision for his army, and that his ammunition was nearly exhausted, hesitated to proceed to a second action with an army reduced twenty thousand in number, and thus to risk being cut off from K?nigsberg, endangering the person of the King of Prussia; and so the extreme caution, or rather, perhaps, the necessities of the Russian general, were the rescue of Buonaparte. Benningsen resolved to retreat upon K?nigsberg. THREE:The Whig party were in consternation at this sudden disruption of the union of the heads of their party. A meeting was held on the night of the 11th of February at Burlington House, which did not separate till three in the morning. The result did not appear to have been very satisfactory, and the fears of the Whigs were greatly augmented by finding Pitt, who had hitherto praised the Revolution, now express the great obligations of the country to Mr. Burke, for the able warning which he had given against revolutionary principles. The king made no secret of his abhorrence of these principles. He considered the French Revolution as the direct result of the American one; and having come to the conclusion that he had himself erred by too much concession, he now censured the concessions of Louis XVI. as fraught with certain calamity. All this boded a decided resistance to the spirit of reform at home. There was a new schism amongst the organs of the press. Many of the newspapers still fostered in their columns the wildest hopes of universal advantage to the cause of liberty from the French Revolution; but others adopted the opinions and views of Burkeand no few of the Whig and Foxite papers were of this class. The effect of the alarm at the wild conduct of the French was speedily seen in the refusal to consider the repeal of the Test and Corporation Act, which was brought forward by Fox, on behalf of the Dissenters, and a motion for parliamentary reform, introduced by Mr. Flood. Both were strongly opposed, on the ground that this was not the time to make any changes whilst so riotous a spirit of change was near us, and was so warmly admired by many of our own people. Both motions were rejected by large majorities.
TWO:"NAPOLEON." THREE:
TWO: THREE:[See larger version]
TWO:On the 10th of May the second Congress met at Philadelphia. The delegates had everywhere been easily elected, and Franklin, having arrived on the 5th of May in Philadelphia, was in time to be added to the number already chosen there. The battle of Lexington had heated the blood of the delegates, and they assembled in no very pacific mood. They assumed the name of the Congress of the United Colonies, and rejected with contempt the poor conciliatory Bill of Lord North, as it had already been deservedly treated by the provincial Assemblies. They immediately issued a proclamation prohibiting the export of provisions to any British colony or fishery still continuing in obedience to Great Britain; or any supply to the British army in Massachusetts Bay, or the negotiation of any bill drawn by a British officer. Congress ordered the military force of the colonies to be placed on an efficient footing. They called into existence a body of men, besides the provincial militia, to be maintained by the United Colonies, and to be called continental troops, which distinction must be kept in mind during the whole war. They then made a most admirable choice of a commander-in-chief in the person of Colonel George Washington. THREE:An impression got abroad, soon after the Clare election, that the Duke of Wellington and Mr. Peel were wavering on the Catholic question; and in the month of August a profound sensation was produced by a speech made by Mr. Dawson, one of the members for Londonderry. Mr. Dawson was the brother-in-law of the Home Secretary. The latter represented Oxford University, having beaten Canning out of the field, as the champion of Protestant ascendency. The former represented the greatest stronghold of Protestantism in Ireland, the very last of all its constituencies to tolerate a departure from its own inspiring watchword, "No Surrender." Mr. Dawson had been a most uncompromising antagonist of the Catholic claims. We cannot wonder, then, at the startling effect, which ran like an electric shock through the country, when such a mana member of the Governmentat a public banquet, in the midst of the local chiefs of Conservatism within the walls of Derry, surrounded by all the memorials of the glorious Revolution of 1688, pronounced the word "Surrender." He was described as the "pilot balloon," to show the direction in which the wind blew in high quarters. Thus, there was a complete accordance between Mr. Sheil, the eloquent agitator, and Mr. Dawson, one of the ablest and most loyal supporters of the Government, as to the victorious power of the Catholic Association. But to have its triumphs thus proclaimed on the very spot where Protestant ascendency had been established 140 years before, and which had ever since remained its greatest stronghold, was more than could be borne by men who had just been drinking with enthusiasm "The glorious, pious, and immortal memory of William III." Mr. Dawson was, therefore, reviled and execrated; he was burned in effigy, and for years his name was almost as odious to the Orangemen as Lundy the traitor. Hitherto, the agitation on both sides had been little better than child's-play. The Protestant party rested satisfied in the persuasion that "the Constitution in Church and State" was safe in the keeping of a thoroughly Conservative Governmenta House of Lords which would not change the laws of England, and a Sovereign who would not violate his coronation oath. But when they found their standard-bearers fainting, and their most trusted commanders parleying with the enemy, their exasperation knew no bounds. The Brunswickers were now terribly in earnest. Their blood was up, and they longed for the arbitrament of the sword.
Top Sir Henry Clinton had for some time been aware of the real destination of the united forces of Washington and Rochambeau. He must have seen that there was a determined resolve to crush, by the most powerful combination of American and French forces, the army in the south, and every exertion should have been made by him, with fleet and army, to release Cornwallis from his peril. But, instead of sending direct reinforcements to Cornwallis, and ordering the fleet to engage the enemy's attention, and, if possible, defeat De Grasse in the Chesapeake, he concocted a diversion in Connecticut with Arnold, which he fondly hoped would recall Washington. Sir Henry Clinton contemplated further expeditionsfirst against the Rhode Island fleet, and next against Philadelphia; but these never came off, and matters were now every day assuming such an aspect as should have stimulated him to some direct assistance to Cornwallis.[See larger version]The audacity of Buonaparte still further excited the indignation of the British Government. Under the name of consuls, he sent over to England and Ireland a number of military officers, whose real business was to act as privileged spies, to prepare plans of all the chief ports, with soundings, and an exact account of the winds with which vessels could go out or come in with most ease, and also at what draught of water the harbours might be entered by large vessels. These agents had been instructed to maintain the utmost secrecy as to their real objects, but they became known, and Ministers announced that any person coming in such a character to this country should be ordered instantly to quit it. Neither was the temper of the nation at all improved by the irritating proceedings of the French authorities on the coasts of France. A law had been passed by the Jacobins, in the most rabid time of the Revolution, condemning any vessel under a hundred tons burden found within four leagues of the French shores, having on board British merchandise. It was taken for granted that this decree was virtually annulled by the Peace of Amiens; but repeated seizures were now made of British merchant vessels driven by stress of weather on the French coasts, and the mere fact of having plates, knives, and forks for the crew, of British make, was used as a plea for confiscation of ships. It was in vain that remonstrances were made to the First Consul: they passed without notice. Such a peace it was evident could not last long. Napoleon was in a mood to brook no control from any quarter; he at this time showed how completely he would crush any creature who offended him when he had the power.
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