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THREE:It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to do��causes that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discovery��a box containing ��700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from ��17,477,290 to ��25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds.Circumstances appeared now to be growing serious. Meetings were held in defiance of the strict measures of Government throughout the manufacturing districts; and at Blackburn it was announced at such a gathering, on the 5th of July, that the women had also formed themselves into "Sister Reform Associations," and these called on their own sex everywhere to imitate their example, so as to co-operate with the men, and to instil into the minds of their children a hatred of tyrannical rulers. The men, at the same time, made another advance in the Reform agitation; this was drilling-a movement which gave great alarm to the magistrates of Lancashire, who wrote from various quarters to apprise Government of it. It was a circumstance that might well excite suspicion that something more than Reform was intended. But when it came to be explained by the parties themselves, it turned out to mean nothing more than that the Reformers in the neighbourhood of Manchester were intending to hold a great meeting in order to elect a representative, as the people of Birmingham had done, and that they wished to assemble in the utmost order and quiet. But the very means employed by them to avoid confusion, and enable them to meet and disperse with decorum, were just those most calculated to excite the fears of a magistracy and Ministry already suspicious.

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THREE:This noble independence was in bright contrast to that of Scottish juries. In this very autumn, fresh trials of accused seditionists had taken place at Edinburgh, in which the conduct of Government and the servility of the Scottish juries were equally reprehensible. One Robert Watt, a ruined tradesman of that city, was put upon his trial, on the 14th of August, charged with eighteen overt acts of high treason��in exciting many individuals to arm themselves, and to meet in convention to concoct plans for the overthrow of the Government. But it appeared on the trial that Watt had long been a Government spy, employed to instigate people to these courses, by direct orders from Mr. Secretary Dundas and the Lord Advocate of Scotland. Letters from these gentlemen containing these orders, and proofs of Watt being in the pay of Government for these purposes, were produced by Mr. Henry Erskine, the prisoner's counsel. It was shown unanswerably that he had been encouraged to have arms made and distributed, and to tempt soldiers in Edinburgh. He had been thus employed to mislead and ensnare unsuspecting persons from August, 1792, to October, 1793��more than twelve months; and it was shown that after this the Government had abandoned him, and that he had then joined the Reformers in earnest. Notwithstanding this display of the infamous conduct of the Government, Watt was condemned to be hanged, drawn, and quartered.Lord George Murray then said that, as they needs must go, he proposed that they should enter England on the Cumberland side, so as to harass Wade's troops, if he marched across to meet them. The idea was adopted as a great improvement; it was kept a profound secret. Still further to mislead the English, Lord George proposed another plan, which was also adopted��to divide the army into two columns, to march by two different routes, but to unite at Carlisle. One of these was to be led by the prince himself by Kelso, as if intending to march straight into Northumberland; the other to take the direct road through Moffat. It was resolved to leave Lord Strathallan to command in Scotland, to take up his headquarters at Perth, receive the expected succours from France, and all such reinforcements from the Highlands as should come in.

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