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Such was the busy scene which these colonies were now presenting. Dutch, German, and Swedish emigrants were carrying their industry and handicrafts thither. But, instead of our merchants seeing what a mighty market was growing up for them there, their commercial jealousy was aroused at the sight of the illicit trade which the colonists carried on with the Spanish, French, and other colonies, and even with Europe. The planters of the British West Indies complained of the American colonists taking their rum, sugar, coffee, etc., from the Dutch, French, and Spanish islands, in return for their raw produce, asserting that they had a monopoly for all their productions throughout the whole of the British dominions. Loud clamours were raised by these planters in the British Parliament, demanding the prohibition of this trade; and, after repeated endeavours in 1733 an Act was passed to crush it, by granting[184] a drawback on the re-exportation of West Indian sugar from England, and imposing duties on the importation of the West Indian produce of our European rivals direct into the American colonies.

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From the Picture by T. R. HARDY.The marriage of the Prince of Wales with Mrs. Fitzherbert was notorious; but as it was not openly avowed by the Prince, no steps were taken to dissolve it. But in 1794 the Prince had got a new favourite, the Lady Jersey, already a grandmother, but a young one. For her Mrs. Fitzherbert was dismissed, showing how little the Prince thought of the reality of the marriage with[442] that fair lady, and he now lived openly and ostentatiously with Lady Jersey, Lord Jersey being well contented with the arrangement for the sake of the good things he hoped to gain by it, being at once appointed Master of the Horse to the Prince. But the Prince's extravagance and gambling, by the practice of which, notwithstanding his own losses, he reduced his friends, one after the other, as the Earl of Moira, Sir Wallace Porter, and others, to beggary, had now brought him into extreme difficulties. His debts, after having been more than once paid off by Parliament, now again amounted to six hundred and thirty thousand pounds! Another appeal to Parliament was absolutely necessary, for his creditors were grown excessively clamorous. The king seized the opportunity to induce the Prince to marry a foreign princess, representing it as the only plan by which they could apply to Parliament for such an increase of means as would enable him to liquidate his debts. But instead of allowing the Prince to go abroad and make his own selection, so that there might be possibly some degree of freedom of choice in the matter, the queen was anxious to have her own niece, the Princess Louisa Augusta Amelia of Mecklenburg, selected for him. This Princess, afterwards the popular Queen of Prussia, was a good creature, and might possibly have wrought some favourable change even in so depraved a nature as that of the Prince of Wales. But the king was equally determined to secure the unenviable post for his own niece, Caroline Amelia Elizabeth, the second daughter of the Duke of Brunswick, who was one of the petty princes of Germany. To effect this arrangement, an attachment between the Crown Prince of Prussia and this Princess Caroline had to be rent asunder. The Prince was ready to fall in with any such bargain, on condition that he was liberated from his debts. It was certain that he would please himself as to the lady or ladies with whom he would really live. All obstacles of nature, or of nearness of consanguinity, or of private attachments were overborne by diplomacy, and by the promise of the discharge of the Prince's debts. The Princess Caroline of Brunswick was selecteda young lady of not unpleasing person in her youth, according to the descriptions of the time, but of defective education, and coming to this country with the repugnance of a prior and rudely-sundered attachment. She landed at Greenwich on Sunday, the 5th of April, 1795, and the marriage ceremony was performed at St. James's, by the Archbishop of Canterbury, on the 8th. The Princess had not been ignorant of the dissolute character of her appointed husband, and his mode of receiving her was not calculated to inspire any brilliant hopes of his improvement. He had sent his mistress, the Lady Jersey, to meet her on landing, and he made no disguise of his connection with her before or after the marriage. The Memoirs of the time assert that Lady Jersey omitted no arts to render the Princess ridiculous and even disgusting to the Prince; but what chagrined him far more deeply was the breach of the promises held out to him of the discharge of his debts by a parliamentary grant or grants.
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But the smoothness was only on the surfacebeneath were working the strongest political animosities and the most selfish desires. The little knot of aristocratic families which had so long monopolised all the sweets of office, now saw with indignation tribes of aspirants crowding in for a share of the good things. The aspirants filled the ante-chamber of Bute, the angry and disappointed resorted to Newcastle, who was in a continual state of agitation by seeing appointments given to new men without his knowledge; members rushing in to offer their support to Government at the next election, who had[169] hitherto stood aloof, and were now received and encouraged.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.[See larger version]
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