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Soult, on the retreat of Sir John Moore, had taken possession of Ferrol, Bilbao, and the other principal towns in the north of Spain. He had then entered Portugal, and had marched to Oporto, which he took after a resistance of only two days; and Sir J. Cradock had retired to Lisbon. Soult was prevented from advancing farther by the rising of the Spaniards behind him in Galicia, who retook Vigo and other places; whilst Silviera, the Portuguese general, interposed between him and Galicia, and formed a junction with the Spaniards. Wellesley determined to expel Soult from Oporto, and did not hesitate to say that the French general could not long remain in Portugal. Leaving a division in Lisbon to guard the eastern frontiers of Portugal against the forces of Victor, who lay in Spanish Estremadura, Sir Arthur advanced towards Oporto with a celerity that astonished the French. He quitted Lisbon on the 28th of April, reached Coimbra, driving the French before him, and on the 9th of May he was advancing from that city on Oporto. By the 11th he was occupying the southern bank of the Douro, opposite to that city. Soult had broken down the bridges and sent away the boats, so that he might be able to retire at leisure into Galicia; but Sir Arthur managed to send across General Murray with a brigade, a few miles above Oporto, and a brigade of Guards also passed at the suburb of Villanova, and he discovered sufficient boats to carry over his main army just above the town. The French commenced a fierce attack on the British forces as they landed; but the first battalion, the Buffs, got possession of a large building called the Seminario, and held it till the other troops arrived. Major-General Hill soon brought up the 48th and 66th regiments; General Sherbrooke, who crossed the river below the town with the brigade of Guards and the 29th regiment, entered the town amid the acclamations of the people, and charged the French in the rear; and General Murray, about the same time, showed himself on the French left, above the town. Soult fled, leaving behind him his sick and wounded, and many prisoners, besides much artillery and ammunition. This taking of Oporto, in the face of a French force of ten thousand men, coupled with his having to cross the broad Douro, and that with very defective means of transit, was a most brilliant affair; and the most astonishing thing was, that Wellesley lost only twenty-three killed and ninety-eight wounded, whilst Soult's troops suffered severely.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.The chiefs of the Tory party were at this time sanguine in their expectation of being speedily called to office. Their hopes were founded mainly upon the dissensions that were known to exist in the Cabinet. These dissensions were first revealed by O'Connell's motion for a committee to inquire into the conduct of Baron Smith, when presiding as a judge in criminal cases, and especially with reference to a charge addressed by him to the grand jury of Dublin, in which he said: "For the last two years I have seldom lost an opportunity for making some monitory observations from the Bench. When the critical and lawless situation of the country did not seem to be generally and fully understood, I sounded the tocsin and pointed out the ambuscade. Subsequent events deplorably proved that I had given no false alarm. The audacity of factious leaders increased from the seeming impunity which was allowed them; the progress of that sedition which they encouraged augmented in the same proportion, till on this state of things came, at length, the Coercion Bill at once to arrest the mischief, and consummate the proof of its existence and extent." As there was no doubt that these shafts were aimed at O'Connell, this last charge afforded him a fair opportunity of putting a stop to the abuse by bringing the conduct of the talented but eccentric judge before Parliament; for, as there was no political case in the calendar, there was no excuse for the attack. Mr. Littleton declared it impossible to refuse his consent to the motion. Mr. Stanley, Lord Althorp, and Lord John Russell expressed a similar view. Sir James Graham briefly but warmly dissented from his colleagues. He had come down to the House with the understanding that they meant to oppose the motion. He for one still retained his opinion, and had seen no reason to change it. As one who valued the independence of the judges and his own character, he must declare that if the motion were carried, and if, as its result, an Address was presented to the Crown for the removal of Baron Smith, it would be a highly inexpedient��nay, more, a most unjust proceeding. The present would be the most painful vote he had ever given, since he felt it incumbent upon him to sever himself from those friends with whom during a public life of some duration he had had the honour of acting; but feeling as he did the proposition to be one dangerous in itself, he conceived he would be betraying the trust committed to him if he did not declare against it. Baron Smith was ably defended by Mr. Shaw, by Sir J. Scarlett, and Sir Robert Peel. On a division, the motion for a committee of inquiry was carried by 167 to 74, Sir James Graham and Mr. Spring-Rice voting in the minority. Next morning Sir James tendered his resignation as First Lord of the Admiralty, which was declined, and in the following week the vote was rescinded by a majority of six. The Austrians being again expelled from Italy, Buonaparte, in his all-absorbing cupidity, determined to turn adrift the Pope, and add his little vineyard to his now cumbrously overgrown Ahab's domains. He had begun this spoliation in 1808, seizing on the greater part of the Pontiff's territories; sending away his cardinals, and reducing him to little better than a solitary prisoner in his own palace. This was an ungrateful return to the poor old Pope for making the long journey into France to crown him, and thus to give a sacred sanction to his usurpation of the imperial crown��a sanction of immense effect throughout the Catholic world. Pius VII. had given Buonaparte great offence by refusing to declare war on Great Britain, and thus keeping up a breach in his system of exclusion of British commerce. He had, therefore, already taken military possession of Civita Vecchia and Ancona, but he now resolved to take the whole temporal dominion from the Pope, and abrogate, by virtue of his assumed heirship of Charlemagne's realm, the gift of Charlemagne to the Church. On the 2nd of February, 1809, General Miollis, by order of Buonaparte, took possession of Rome, disarmed and disbanded the Pope's guard, and marched his other soldiers to the north, telling them they should no longer remain under the effeminate rule of a priest. Miollis then gave the Pontiff the alternative to join the French league, offensive and defensive, or to be deposed. The Pope firmly refused to concede his rights to anything but absolute force. On the 17th of May, therefore, Napoleon's decree for the deposition of the Pope from his temporal power was proclaimed. It assumed the heirship of Charlemagne to be in Buonaparte; declared the union of the spiritual and temporal powers to be the source of all scandals and discords in the Catholic Church; that they were, therefore, at an end��the Roman State for ever united to the French Empire. On the 10th of June Pius issued a bull excommunicating Buonaparte and all who aided him in his sacrilegious usurpation of the patrimony of St. Peter; and this was followed, on the 6th of July, by General Radet forcing the gates of the Vatican, taking possession of it with his troops, entering the presence of the Pope, who was amid his priests, and clad in his pontificals, and demanding that he should instantly sign a renunciation of all the temporal estates attached to the see of Rome. Pius declared that he neither could nor would perform any such sacrilegious act. He was then informed that he must quit Rome. Pius was detained at Savona three years, and was then removed to Fontainebleau.But all this was but preliminary to the great battle which commenced on the 30th of this month and decided the fate of the Ministry. Lord John Russell, after the House had been called over, moved, "That the House should resolve itself into a committee of the whole House, to consider the temporalities of the Church of Ireland, with a view of applying any surplus of the revenues not required for the spiritual care of its members to the general education of all classes of the people, without distinction of religious persuasion." This resolution was skilfully framed to secure the support of all the Liberal party, and of the English Dissenters as well as the Irish Catholics; all of them being able to agree upon it, and to act together without inconsistency, though each might act from different motives and with different objects. The discussion was particularly interesting, as it turned very much upon the great question of religious establishments. Lord John Russell, Lord Howick, and Mr. Sheil, while fully admitting that an establishment tends to promote religion and to preserve good order, contended that it ought not to be maintained where it fails to secure these objects, and that it must always fail when, as in Ireland, the members of the Established Church are only a minority of the nation, while the majority, constituting most of the poorer classes, are thrown upon the voluntary system for the support of their clergy. Concurring with Paley in his view of a Church establishment��that it should be founded upon utility, that it should communicate religious knowledge to the masses of the people, that it should not be debased into a State engine or an instrument of political power,��they demanded whether the Church of Ireland fulfilled these essential conditions of an establishment. They asked whether its immense revenues had been employed in preserving and extending the Protestant faith in Ireland. In the course of something more than a century it was stated that its revenues had increased sevenfold, and now amounted to ��800,000 a year. Had its efficiency increased in the same proportion? Had it even succeeded in keeping its own small flocks within the fold? On the contrary, they adduced statistics to show a lamentable falling off in their numbers.In Germany, Frederick of Prussia was hard put to it. A fresh army of Russians, under General Soltikow, advanced to the Oder, and another army of Austrians, under Laudohn, advanced to form a junction with them. To prevent this, Frederick sent General Wedel to encounter the Russians, but he was defeated by them on the 23rd of July, with heavy loss. Frederick himself then hastened against them, but, before his arrival, the Austrians had joined Soltikow, making a united force of sixty thousand, which Frederick attacked, on the 12th of August, with forty-eight thousand, at the village of Kunersdorf, close to Frankfort-on-the-Oder. At first he was successful; but, attempting to push his advantages, he was completely beaten, the whole of his army being killed or scattered to three thousand men. So completely did his ruin now seem accomplished, that, expecting the Russians, Austrians, Poles, Swedes, and Saxons to come down on him on all sides, he once more contemplated taking the poison that he still carried about him; wrote a letter to that effect to his Prime Minister, and directed the oath of allegiance to be taken to his nephew, and that his brother, Prince Henry, should be regent; but finding that the Russians, who had lost twenty thousand men, were actually drawing off, he again took courage, was soon at the head of thirty thousand men, and with these was hastening to the relief of Dresden, when he was paralysed by the news that General Finck, with twelve thousand men, had suffered himself to be surrounded at Maxen, and compelled to surrender. Despairing of relieving Dresden during this campaign, Frederick eventually took up his winter quarters at Freiberg, in Saxony, and employed himself in raising and drilling fresh soldiers; compelled, however, to pay his way by debasing both the Prussian coin, and the English gold which he received in subsidy, by a very large alloy.But the more the mystery, the greater was the rage of the English Government. On the opening of the Session of Parliament for 1737, a Bill was brought in of a most frantic and unwise character:��"To abolish the charter of the City of Edinburgh, to rase the city gates, disband the City Guard, and declare Mr. Wilson, the Provost, incapable of again holding any public office." Nothing so furious and unstatesmanlike could ever have been imagined possible in the eighteenth century. Witnesses were called to the bar of both Houses, and amongst them three Scottish judges, in their robes, were subjected to a sharp cross-examination. Nothing, however, could be elicited except some degree of carelessness on the part of the city magistrates. The Scottish nation, with its usual spirit, highly resented the menaces of this impolitic Bill. The Duke of Argyll in the Lords, and various members of the Commons, denounced it as equally insulting and unjust. They were zealously supported by many English members, especially by Wyndham and Sir John Barnard, and the Bill gradually shrank into an Act disabling Mr. Provost Wilson from holding any office in future, and fining the city two thousand pounds for the benefit of the widow of Captain Porteous; and, alluding to her original station, it was jocosely said, therefore, that all this terrible menace ended in making the fortune of an old cookmaid.

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