TWO:In the House of Commons similar resolutions were moved on the 24th by Mr. Robert Peel, who, on this occasion, made the first of those candid admissions of new views which he afterwards repeated on the question of Catholic Emancipation, and finally on the abolition of the Corn Laws. This eminent statesman, though beginning his career in the ranks of Conservatism, had a mind capable of sacrificing prejudice to truth, though it was certain to procure him much obloquy and opposition from his former colleagues. He now frankly admitted that the evidence produced before the secret committee of the Commons, of which he had been a member, had greatly changed his views regarding the currency since in 1811 he opposed the resolutions of Mr. Horner, the chairman of the Bullion Committee. He now believed the doctrines of Mr. Horner to be mainly sound, and to represent the true nature of our monetary system; and, whilst making this confession, he had only to regret that he was compelled by his convictions to vote in opposition to the opinions of his venerated father. Several modifications were proposed during the debate, but there appeared so much unanimity in the House that no alterations were made, and the resolutions passed without a division. The resolutions were to this effect:That the restrictions on cash payments should continue till the 1st of May, 1822; that, meanwhile, the House should make provision for the gradual payment of ten millions of the fourteen millions due from the Government to the Bank; that, from the 1st of February, 1820, the Bank should take up its notes in gold ingots, stamped and assayed in quantities of not less than sixty ounces, and at a rate of eighty-one shillings per ounce. After the 1st of October of the same year the rate of gold should be reduced to seventy-nine shillings and sixpence per ounce; and again on the 1st of May, 1821, the price should be reduced to seventy-seven shillings and tenpence halfpenny per ounce; and at this rate of gold, on the 1st of May, 1822, the Bank should finally commence paying in the gold coin of the realm. Bills to this effect were introduced into both Houses by the Chancellor of the Exchequer and Mr. Peel, and were readily[144] passed; and such was the flourishing condition of the Bank that it did not wait for the full operation of the Act, but commenced paying in coin to any amount on the 1st of May, 1821.
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THREE:Whilst Louis lay ill at Metz, France received an unexpected relief. Prince Charles was hastily recalled to cope with Frederick of Prussia, who had now joined France in the counter-league of Frankfort, and burst into the territories of Maria Theresa. He found in Prague a garrison of fifteen thousand men, yet by the 15th of September he had reduced the place, after a ten days' siege. At the same time Marshal Seckendorf, the Imperial general, entered Bavaria, which was defended only by a small force, and quickly reinstated[88] Charles on the throne of Munich. Vienna itself was in the greatest alarm, lest the enemies uniting should pay it a visit. But this danger was averted by the rapid return of Prince Charles of Lorraine from before Strasburg. He had to pass the very front of the French army; nevertheless, he conducted his forces safely and expeditiously to the frontiers of Bohemia, himself hastening to Vienna to consult on the best plan of operations. Maria Theresa again betook herself to her heroic Hungarians, who, at her appeal, once more rushed to her standard; and Frederick, in his turn alarmed, called loudly on the French for their promises of assistance, but called in vain. The French had no desire for another campaign in the heart of Austria. The Prussian invader, therefore, soon found himself menaced on all sides by Austrians, Croatians, and Hungarian troops, who harassed him day and night, cut off his supplies and his forages, and made him glad to retrace his steps in haste.The war was scarcely begun when it was discovered that we had proclaimed hostilities much before we were prepared to carry them out. Our ships were badly manned, and therefore slow to put to sea, and the more alert Spaniards were busy picking up our merchant vessels. Not they only, but the French, Dutch, and other nations who had hoisted Spanish colours, were making wide devastation amongst our trading vessels. Walpole was compelled to issue letters of marque and licences to swarms of privateers, which issued forth to make reprisals. The Lords of the Admiralty, on the 1st of February, 1740, had ordered an embargo on all shipping except coasters, so as at once to keep them out of reach of the enemy, and to induce seamen to enter the navy; but on the 28th of March a petition from merchants and owners of shipping was presented, complaining of the hardships and the destruction of trade by it. The Lords of the Admiralty contended that such had been the complaints of injuries done at sea to our traders, that they had been compelled to impose the embargo in the absence of sufficient hands for men-of-war. They now took the embargo off foreign ships, and gave notice to English owners that they would take it off altogether, on condition that the owners and masters of vessels would enter into an engagement to furnish a certain number of men to the navy in proportion to the number of hands in each trader. This also was denounced as a most oppressive measure, and the Opposition represented it as intended to make the mercantile community sick of the war. Driven, however, to extremities, Ministers would not listen to these arguments; a motion was carried sanctioning this plan, and then the merchants came into it.
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TWO:THE CHARGE OF THE CAVALRY AT MEEANEE. (See p. 592.)[77]
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THREE:Before the close of April a great commercial crisis had taken place in England, and Ministers were compelled to make a new issue, by consent of Parliament, of five millions of Exchequer Bills, to assist merchants and manufacturers, under proper security. The sudden expansion of industry which was met by an undue increase of the paper currency rather than bullion, combined[417] with reckless banking, produced the crisis. It was calculated that out of the 350 provincial banks 100 failed. In the circumstances the issue of Exchange Bills was a most successful makeshift.
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TWO:The confederates endeavoured to keep their plans profoundly secret till they were ready to burst at once on the devoted King of Prussia; but Frederick was the last man alive to be taken by surprise. The secret was soon betrayed to him, and, at once waiving his dislike of the King of England, he concluded a convention with him in January, 1756, and bound himself, during the disturbances in America, not to allow any foreign troops to pass through any part of Germany to those colonies, where he could prevent it. Having his treasury well supplied, he put his army in order, and in August of that year sent a peremptory demand to Vienna as to the designs of Austria, stating, at the same time, that he would not accept any evasive reply; but the reply being evasive, he at once rushed into Saxony at the head of sixty thousand men, blockaded the King of Saxony in Pirna, and secured the queen in Dresden. By this decisive action Frederick commenced what the Germans style "The Seven Years' War." In the palace of Dresden Frederick made himself master of the secret correspondence and treaties with France, Russia, and Austria, detailing all their designs, which he immediately published, and thus fully justified his proceedings to the world.