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THREE:The South Sea Company had immediately on the passing of the Bill proposed a subscription of one million, and this was so eagerly seized on that, instead of one, two millions were subscribed. To stimulate this already too feverish spirit in the public, the Company adopted the most false and unjustifiable means. They had eight millions and a half to pay over to Government as a douceur for granting them the management of the Funds; and, therefore, to bring this in rapidly, they propagated the most lying rumours. It was industriously circulated that Lord Stanhope had received overtures at Paris to exchange Gibraltar and Port Mahon for invaluable gold lands in Peru! The South Sea trade was vaunted as a source of boundless wealth in itself. In August the stock had risen from the one hundred and thirty of the last winter to one thousand! Men sold houses and land to become shareholders; merchants of eminence neglected their affairs and crippled their resources to reap imaginary profits. The Company flattered the delusion to the utmost. They opened a third, and even a fourth subscription, larger than the former, and passed a resolution that from next Christmas their yearly dividend should not be less than fifty per cent.! In labouring to increase the public delusion they seem to have caught the contagion themselves, for they began to act, not like men who were blowing a bubble which they knew must speedily burst, but like persons who had mounted permanently into the very highest seat of prosperous power. They assumed the most arrogant and overbearing manner, even towards men of the highest station and influence. "We have made them kings," said a member of Parliament, "and they deal with everybody as such."But there was another topic started in this first Imperial Parliament which was as odious to George III. as the perfidious conduct of his late Russian ally. As one means of bringing about the union with Ireland, Pitt held out to the Irish Catholics the argument that by having Irishmen in the united Parliament they would be most likely to obtain a repeal of the Catholic disabilities. Both he and Lord Cornwallis had sent circulars to this effect, anonymous, it is true, but with a secret avowal of their authorship, amongst the leading Catholics, which had a great effect in procuring their assent to the union. Lord Castlereagh, who as Secretary of State for Ireland had helped to carry the union, claimed the redemption of this pledge. The matter was talked over in the Cabinet during the autumn of 1799, and again in September, 1800. Pitt introduced the subject about the middle of January in the Privy Council. But in the interval the Chancellor, Lord Loughborough, had betrayed the plan to the king, and in conjunction with Lord Auckland had convinced his Majesty that it would involve a violation of the Coronation Oath. George was indignant, and almost furious. At the levee on the 28th of January, when Lord Castlereagh was presented, he said to Dundas, "What is this which this young lord [Castlereagh] has brought over to fling at my head?" He alluded to a plan for Catholic emancipation, and added, "I shall reckon every man my personal enemy who proposes any such measure! This is the most jacobinical thing I ever heard of." Dundas replied that his Majesty would find amongst those friendly to the measure some whom he had never supposed to be his enemies. On the 31st of January Pitt wrote to the king, assuring him that the union with Ireland would render it absolutely necessary that important questions regarding the Catholics and Dissenters should be discussed; but, as he found how extremely such[479] topics were disliked by his Majesty, and yet how just it was that Catholics should be admitted to Parliament as well as Protestant Dissenters, who were already admitted, he begged to be permitted to resign. At the same time, not to inconvenience his Majesty, he was willing to hold office till his Majesty had reconstructed a Cabinet wholly to his mind. George replied, the very next day, that Mr. Pitt's letter had occasioned him the liveliest concern; that, so far from exposing him to the agitation of this question, he had flattered himself that the union, by uniting the Protestants of both kingdoms, would for ever have excluded the question of Catholic emancipation. He expressed his ardent wish that Pitt should continue to be his Minister as long as he lived; and he only required, as a condition, that he should stave off this question. Pitt replied, on the 3rd of February, that his Majesty's determined tone on the subject of Catholic emancipation left him no alternative but to resign, in compliance with his duty; and that, as his Majesty's resolve was taken, it would certainly be best for the country that his retirement should be as early as possible. On the 5th the king wrote, accepting Pitt's resignation, though with expressions of deep regret.