CHAPTER VI.

VERONA.

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The third topic discussed at these conferences was the nature of the relations then subsisting between France and Spain, and the projects of the former power in reference to the latter. These were explained by the Minister without any reserve, and with no symptoms of apprehension that they would be disagreeable to Britain, or of anxiety as to the result, whether they were so or not. He frankly avowed that, under cover of the sanitary cordon, 100,000 French troops were assembled; that it was proposed to throw them in two columns into Spain; that one column, of 40,000 men, was to pass into Catalonia, while the other, of 60,000, was to march by the great road through Irun upon Madrid. He stated that the sole object of this invasion was to insure the personal safety of the king, to afford him the opportunity to collect a native force strong enough to enable him to protect himself against the schemes of the Revolutionists—that is, to put down the Constitution. Of course, France said she entertained no views of conquest or aggrandisement, or even of prolonged occupation. She would withdraw her troops whenever the King of Spain said he could do without them, and yield up every inch of territory. In reference to this matter the Duke of Wellington wrote home for instructions, and in reply Canning said:—"If there be a determined project to interfere by force or by menace in the present struggle in Spain, so convinced are his Majesty's Government of the uselessness and danger of any such interference—so objectionable does it appear to them in principle, as well as utterly impracticable in execution—that when the necessity arises—or, I would rather say, when the opportunity offers—I am to instruct your grace at once frankly and peremptorily to declare that to any such interference, come what may, his Majesty will not be a party." To say that England peremptorily declined "to be a party" to the invasion of an independent state, in order to force upon the people a government contrary to their will, was not saying very much, nor putting the objection very strongly. We are assured, however, that the Duke steadily set his face against the project, pointing out that the step would be not only unjust, but impolitic; that it would precipitate the catastrophe which the French Government feared; that the Revolutionists would probably remove Ferdinand from Madrid as soon as they heard of the passing of the frontier by the French troops, and that, even if these troops should reach the capital, the Spaniards would not therefore submit, nor would the king be set at liberty. He argued that a war between France and Spain for such a purpose would be pronounced a war to put down free institutions, and that if France sought the support of her allies, the only one amongst them that had free institutions would feel it her duty to meet such a request with a refusal. Europe would be ranged into two hostile camps, that of absolutism on the one side and of revolution on the other; amid which not thrones only, but settled governments in every form, might be overthrown. In reply to these arguments, both the king and his Minister stated that whatever France might do in the matter she would do single-handed, and that she would not only not apply for assistance from without, but that, if such assistance were offered, she would refuse it. The Duke could not, however, prevail upon the French Government to refrain from bringing the question between Franceand Spain before the Congress. The king and his Minister both contended that vast moral good would accrue from a joint remonstrance on the part of the Allies against the treatment to which the King of Spain was subjected, and a joint threat that if any violence were offered to his person or family all would unite to avenge the outrage.

Having reported to Mr. Canning the result of his diplomatic efforts at Paris, the Duke set out on his journey to Vienna, where he arrived on the 29th of September, and where he expected the Congress to be held. But there again England's plenipotentiary, the great conqueror of Napoleon, who had restored the legitimate despots to their thrones, was treated with as little consideration as at Paris. Not till his arrival did he learn that the Congress which he was invited to attend was not to be held at Vienna at all, but at Verona. Meanwhile, in the interval between the adjournment from one city to another, the Allied Sovereigns were paying a visit of friendship to the King of Bavaria, whose system of government no doubt met with their unqualified approval. As the Duke's instructions forbade him to meddle with Italian affairs, he tarried at Vienna till he should receive further instructions from his own Government. While awaiting an answer he had opportunities of conferring personally with the Czar, who had obtained an ascendency in the councils of the Holy Alliance which rendered him the virtual master of every situation. With regard to the affairs of Turkey, the Duke succeeded in obtaining from his Imperial Majesty an assurance that, unless driven to it by some unforeseen and irresistible necessity, he would not come to an open rupture with the Sultan. He was not so successful in his exertions with regard to the Spanish question, on which the Czar was in an irritable mood. He said that Spain was the very centre and focus of revolutionary principles, and he felt it to be the duty not less than the policy of the Allied Sovereigns to trample them out at their source, and for this purpose he had proposed to contribute 150,000 men, whom he intended to march into Spain through French territory. In reply to the Duke's earnest remonstrances against this course, the Czar put a question which betrays the aggressive policy of military despots. He asked what he was to do with his army. It insisted upon being led against Turkey, and was only restrained because he had expressed his determination of employing it in putting down what he called Jacobinism in the west.

The British Cabinet having come to the conclusion that the Duke of Wellington ought not to abstain from attending the Congress because of its meeting in an Italian city, and thinking so himself, he set out for Verona, after a fortnight's sojourn in Vienna.

Wellington acquitted himself as well as could be expected in the circumstances. Austria was induced to acknowledge an old debt to Britain, and to pay an instalment. The utmost which she could obtain from the Allies on the slave trade was a reissue of the joint condemnation of the traffic which had been pronounced in 1815 at Vienna, and a special assurance from France that as soon as public feeling would admit, steps would be taken to carry out the treaty with Great Britain. In the discussion of the affairs of Italy the Duke took no part; but the peace which he had urged upon Russia and Turkey was happily concluded, on terms honourable to both. With regard to the struggles for freedom in Spain and other countries, the Duke found the Allied Sovereigns in the worst possible temper. They had no patience with Britain on account of her dissent, however mild, from their policy. "Hence, though England never expressed her approval of the military revolts in Spain and Italy, or even in South America, still, because she declined to be a party to the suppression of the free institutions in which they issued, Austria, Prussia, and Russia spoke of her as the champion of revolutionary principles all over the world."

Accordingly, the Duke found himself alone in his opposition to the plan of an armed intervention in Spain. It was at first proposed that all the Allies should unite in this; but it was ultimately agreed that aprocès verbalshould be jointly adopted, in which the King of Spain and his family should be declared to be under the protection of Europe, and Spain threatened with a terrible vengeance if any injury were done to them. Thisprocès verbalwas addressed to the head of the Spanish Government, with an explanation of the reasons for its adoption. The Duke was disappointed and mortified at the obstinate self-will of the crowned despots. He had gone to Verona in the hope that they would at all events be open to arguments in favour of peace; he found them bent on such a course as would render its preservation impossible. When the Ministers reduced their ideas to a definite shape, the incidents which they agreed to accept as leading necessarily to war appeared to him fallacious in the extreme. They were these:—First, an armed attack by Spain upon France. Second, any personal outrage offered to Ferdinand VII., or to any member of the Spanish royal family. Third, an act of the Spanish legislature dethroning the king, or interfering in any way with the right of succession. Austria, Prussia, and Russia accepted the conditions readily, adhering, at the same time, to the substance of the notes which they had previously put in.

The Duke produced a paper of his own, in which the three hypothetical causes of war were considered separately. He showed, "First, that an attack by Spain upon France was an occurrence beyond the range of human probability; next, that though, according to the usages of civilised nations, the persons of monarchs were held to be sacred, to extend a character of sanctity to those of other members of the Royal Family was a thing never before heard of in the history of the world; and lastly, that, till the Allies should be informed on sufficient authority that a plan for dethroning Ferdinand or changing the succession in Spain was actually in progress, to assume that such crimes might be perpetrated was to insult the whole Spanish nation. For his own part, he must decline to have any share in the transaction, or to deliver an opinion upon purely hypothetical cases further than this—that if the independence of Spain were assailed without just cause, Great Britain would be no party to the proceeding."

So prejudiced were the Allied Sovereigns against England, that they were ready to believe any tale to her disadvantage. One story which was circulated amongst them at the time was that Great Britain had bound herself to support Spain against France in return for certain stipulated commercial advantages. Another was that she had entered into a secret treaty to defend Portugal against France, even though Portugal should join Spain in the war. After all the Duke's arguments, explanations, and remonstrances, the French plenipotentiary was about to set off for Paris, representing all the Powers as being perfectly unanimous on the policy adopted towards Spain, and the Duke was obliged to threaten him with a public contradiction if he did not alter that statement and except Great Britain.

The Duke withdrew much dissatisfied with the turn affairs had taken, and distrustful of the issue. In a parting interview with the Emperor of Russia, the latter spoke at length in strong disapprobation of the refusal of England to co-operate in putting down revolution, and said, in conclusion, that Russia was prepared for every eventuality. "She was able, with the support of Austria and Prussia, to crush revolution both in France and Spain; and, if the necessity should arise, she was determined to do so." The Duke heard his Imperial Majesty to an end, and then ventured to assure him that the only thing for which Great Britain pleaded was the right of nations to set up whatever form of government they thought best, and to manage their own affairs, so long as they allowed other nations to manage theirs. Neither he nor the Government which he represented was blind to the many defects which disfigured the Spanish Constitution; but they were satisfied that they would be remedied in time. The Emperor could not gainsay the justice of these remarks, but neither was he willing to be persuaded by them; so, after expressing himself well pleased with the settlement of the Turkish question which had been effected, he embraced the Duke, and they parted.

The Duke arrived at Paris on the 9th of December, having spent more than two months at diplomacy with very unsatisfactory results. He found the king and his Minister, M. de Villele, much cooled in their feelings towards the Spanish Government, in consequence of the tone of moderation it had assumed after its defeat of the Royalist insurgents. The king was now disposed to recall his army of observation, if he could do so with honour, and all he pressed for now was that Spain should so modify her system as to make the Constitution emanate from the king, by resting it upon a royal charter and not upon the will of the people. If this were done, and done in time for him to explain the case to the Parliament, when they met on the 28th of January, everything else, every matter of arrangement and detail, would be left to the undisturbed management of the Spanish Cabinet and Cortes. This was truly very accommodating. If Spain would only recant her constitutionalism, and adopt the absolutist creed of Divine Right, the Allies would not send their armies into the country for the protection of the king against his people. The Duke having reported the altered state of feeling in the French Government, and all that had passed, to Mr. Canning, the Foreign Secretary instructed him to deliver an official note to M. de Villele, containing a direct offer from England to mediate. This offer was declined. On the 20th of December the Duke quitted Paris, and arrived in London early in January. Subsequently the diplomatic war was carried on between M. Chateaubriand and Mr. Canning, both men of genius, and masters of a brilliant style of rhetoric, to which the Duke of Wellington had no pretensions. Mr. Canning, alluding to theproposed armed intervention in Spain, with a view to stamp out the revolution, said, "The spirit of revolution—which, shut up within the Pyrenees, might exhaust itself with struggles, trying indeed to Spain, but harmless to her neighbours, when restricted—if called forth from within these precincts by the provocation of foreign attack, might find, perhaps, in other countries fresh aliment for its fury, and might renew throughout Europe the misery of the five-and-twenty years which preceded the peace of 1815."

On the 29th of January, 1823, the King of France opened the Chambers with a speech of decidedly warlike tone. It spoke of 100,000 French soldiers prepared to march under a prince of the blood for the deliverance of Ferdinand VII. and his loyal people from the tyranny of a portion. A few weeks afterwards the march commenced, and from the Bidassoa to Madrid it was a continued triumph. The king was set at liberty, and the gates of Cadiz were opened. The Spaniards were not true to themselves, the mass of the people being unable to appreciate liberal institutions. There was also a counter-revolution in Portugal, aided by foreign bayonets, restoring the despotic system. These events produced great dissatisfaction in England, and the Duke was strongly censured for the timidity of his tone in the Congress. Replying to attacks made in the Upper House by Lords Ellenborough, Holland, and Grey, he asked whether it would be becoming in one who appeared in the character of a mediator to employ threats, especially if he had no power to carry them into effect:—"Were they for a policy of peace or a policy of war? If for the former, could he go farther than to declare that to any violent attack on the independence of Spain the king his master would be no party? If for the latter, all he had to say was that he entirely differed from them, and he believed that his views would be supported by all the intelligent portion of the community."

The conduct of the Government in reference to the Congress was the subject of an animated debate in the House of Commons, which began on April 28th and lasted three days. It was on a motion for a Vote of Censure for the feebleness of tone assumed by the Government in the negotiations with the Allies, an amendment having been proposed expressive of gratitude and approbation. In Mr. Canning's speech on the third day there was one remarkable passage, which clearly defined his foreign policy, and showed that it had a distinct purpose, and aimed at an object of the highest importance. He said:—"I contend, sir, that whatever might grow out of a separate conflict between Spain and France (though matter for grave consideration) was less to be dreaded than that all the Great Powers of the Continent should have been arrayed together against Spain; and that although the first object, in point of importance, indeed, was to keep the peace altogether, to prevent any war against Spain, the first in point of time was to prevent a general war; to change the question from one affecting the Allies on the one side and Spain on the other, to a question between nation and nation. This, whatever the result might be, would reduce the quarrel to the size of ordinary events, and bring it within the scope of ordinary diplomacy. The immediate object of England, therefore, was to hinder the impress of a joint-character from being affixed to the war, if war there must be, with Spain; to take care that the war should not grow out of an assumed jurisdiction of the Congress; to keep within reasonable bounds that predominatingareopagiticalspirit which the memorandum of the British Cabinet of May, 1820, describes as beyond the sphere of the original conception and understood principles of the alliance—an alliance never intended as a union for the government of the world, or for the superintendence of the internal affairs of other states; and this, I say, was accomplished."

The sense of the House was so completely with the Government, that Mr. Brougham, who led the Opposition, declined to go to a division. A division having been called for, however, on the part of Ministers, the whole assembly poured into the lobby, till it could hold no more; and then the remaining members who were shut in were compelled to pass for an opposition, though there were Ministerialists among them. They amounted to twenty, in a House of three hundred and seventy-two.

The aggressive policy of the Holy Alliance, and the French invasion of Spain, despite England's remonstrances, provoked Mr. Canning to hasten the recognition of the revolted colonies in South America. It was in defending this policy that he uttered the memorable sentence so often quoted as a specimen of the sublime:—"Contemplating Spain such as our ancestors had known her, I resolved that if France had Spain, it should not be Spain with the Indies. I called the New World into existence to redress the balance of the Old."

REIGN OF GEORGE IV. (continued).

Prosperity of the Manufacturers—Depression of Agriculture—Resumption of Cash Payments—A restricted Currency—The Budget of 1823—Mr. Huskisson—Change of the Navigation Acts—Budget of 1824—Removal of the Duties on Wool and Silk—Repeal of the Spitalfields Act and the Combination Laws—Speculative Mania—The Crash—Remedial Measures of the Government—Riots and Machine-breaking—Temporary Change in the Corn Laws—Emigration—State of Ireland—Efforts of Lord Wellesley—Condition of the Peasantry—Unlawful Societies—The Bottle Riot—Failure to obtain the Conviction of the Rioters—The Tithe Commutation Act—Revival of the Catholic Question—Peel's Views—The Catholic Association and its Objects—Bill for its Suppression—Plunket's Speech—A new Association formed—Rejection of Burdett's Resolution—Fears of the Moderates—General Election—Its Features—Inquiry into the Bubble Companies—Death of the Duke of York—Canning's vigorous Policy in Portugal—Weakness of the Ministry and Illness of Liverpool—Who was to be his Successor?—Canning's Difficulties—Peel and the Old Tories resign—State of Canning's Health—His arrangements completed—Opposition to Him—His Illness and Death—Collapse of the Goderich Ministry—Wellington forms an Administration—Eldon is omitted—The Battle of Navarino—"The Untoward Event"—Resignation of the Canningites—Grievances of the Dissenters—Lord John Russell's Motion for the Repeal of the Test and Corporation Acts—Peel's Reply—Progress of the Measure—Lord Eldon's opposition—Public Rejoicings.

The year 1823 opened auspiciously, and continued to exhibit unequivocal marks of progressive prosperity. Every branch of manufacturing industry was in a flourishing state. The cotton trade was unusually brisk. There was a considerable increase in the quantity of silks and woollens manufactured; and in consequence of augmenting exportation, the demand for hardware and cutlery was quickened from the state of stagnation in which it had remained since the conclusion of the war. The shipping interest, which had been greatly depressed, fully shared in the general improvement. The agriculturists, however, were still embarrassed and discontented. In January no less than sixteen English counties had sent requisitions to their sheriffs to call meetings to consider the causes of their distresses. The principal remedies proposed were reduction of taxation; reform of the House of Commons; depreciation of the currency; commutation of tithes; and appropriation of the redundant wealth of the Church to public exigencies. At the Norwich meeting a series of resolutions was proposed and seconded by the gentry of the county, but they were rejected and put aside on the motion of Mr. Cobbett, who read a petition which was adopted with acclamation. It recommended an appropriation of part of the Church property to the payment of the public debt; a reduction of the standing army; an abolition of sinecures and undeserved pensions; the sale of the Crown lands; an equitable adjustment of contracts; the suspension of all legal processes for one year for the recovery of rents and tithes; and the repeal of the taxes on malt, soap, leather, hops, and candles.

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 allowedto 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.

On the 12th of February, 1823, the President of the Board of Trade said, in his place in Parliament:—"The general exports of the country in the four years from 1815 to 1819 had decreased £14,000,000 in official value; and he took the official value in preference to the declared, because it was from the quantity of goods produced that the best measure was derived of the employment afforded to the different classes of the community. In the year from the 5th of January, 1819, to the 5th of January, 1820, the exports of the country fell off no less than £11,000,000; and in looking at that part of it which more completely embraced British or Irish manufacture, he found that the difference in four years was £8,414,711; and that in the year from the 5th of January, 1820, to the 5th of January, 1821, there was a decrease of £8,929,629. Nobody, therefore, could be surprised that, at that period, the industry of the country appeared to be in a state of the utmost depression; that our manufacturers were most of them unemployed; that our agriculturists were many of them embarrassed; and that the country, to use the phrase of a friend of his in presenting a petition from the merchants of London, 'exhibited all the appearances of a dying nation.' Though the condition of the agricultural interest was not as favourable as he could wish, still it was most satisfactory for him to state that not only did the exports of last year [1822] exceed those of all the years to which he had been alluding, but also those of the most flourishing year which had occurred during the continuance of the war. In all material articles there had been a considerable increase. The export of cotton had increased ten per cent., and hardware seventeen per cent.; of linens twelve per cent., and of woollens thirteen per cent.; and the aggregate exports of 1822 exceeded those of 1820 by twenty per cent., and of 1821 by seven per cent., notwithstanding a deduction was to be made from the exports of one great article, sugar, owing to a prohibitory decree of Russia, amounting to thirty-five per cent." The result of this prosperous state of things was that, in 1823, the new Chancellor of the Exchequer was enabled to present the best and most popular Budget that had been laid before Parliament for many years, remitting a large amount of taxes that had pressed most heavily on the springs of industry, and inflicted the greatest amount of inconvenience and privation upon the people. The revenue of the nation in that year was £57,000,000, and the expenditure was estimated at £49,672,999, leaving a surplus of upwards of £7,000,000. Of this surplus, £5,000,000 was set aside for the reduction of the National Debt, and the remainder for the remission of taxes. As the assessed taxes were most oppressive, they were reduced fifty percent., a reduction which was estimated on the window tax alone at £1,205,000. On the whole, the assessed taxes were reduced by £2,200,000. This included £100,000, the total amount of assessed taxes in Ireland. In England the whole of the window tax was removed from the ground floors of shops and warehouses.

In 1823 we behold the starting-point of the liberal system of commercial policy, for which not only England, but all the world, is so much indebted—the rivulet which gradually expanded into a mighty river bearing incalculable blessings upon its bosom to every nation under heaven. The appointment of Mr. Huskisson as a member of the Government was an immense advantage to the nation. He was a man of great abilities, which he had perseveringly devoted to the study of political economy. He was a complete master of all subjects in which statistics were involved, and was universally looked up to as the highest authority on all financial and commercial questions. As President of the Board of Trade he had ample opportunities of turning his knowledge to account, and to him is mainly due the initiation and direction of the course of commercial policy which a quarter of a century later issued in the complete triumph of Free Trade. Mr. Huskisson was not only intimately acquainted with the whole range of economic, financial, and mercantile subjects, in their details as well as in their principles, he was also a powerful debater, a sound reasoner, and was animated in all he did by a spirit of generous philanthropy. At the same time it is only just to point out that he did but carry out the policy of Mr. Wallace, the Vice-President of the Board of Trade, a statesman whose name is almost forgotten.

A law in force since the time of Cromwell had provided that no merchandise from Asia, Africa, or America should be imported into Great Britain in any foreign ships; and not only the commander, but three-fourths of the crew, were required to be English. In addition to this restriction of our foreign commerce to English-built and English-manned ships, discriminating duties were imposed upon foreign ships from Europe, which had to pay more heavily than if the goods were imported under the British flag. The object of this system, which prevailed for one hundred and fifty years, was to maintain the ascendency of Britain as a Maritime Power. Adam Smith remarks that the Navigation Act may have proceeded from national rivalry and animosity towards Holland; but he held that its provisions were as beneficial as if they had been dictated by the most consummate wisdom. He admits, however, that they were not favourable to foreign commerce, or to the growth of that opulence that can arise from it, remarking, "As defence is of more value than opulence, the Act of Navigation is perhaps the wisest of all the commercial regulations of England." But had Adam Smith lived later on, he would have seen that the utmost freedom of commerce with foreign nations, and the most boundless opulence arising from it, are quite compatible with a perfect system of national defence; and whatever were the advantages of the restrictive system, other nations could act upon it as well as England. America did so, and thus commenced a war of tariffs equally injurious to herself and the mother country, causing the people of each to pay much more for most of the commodities they needed than they would have done if the markets of the world were open to them. The consequence was that both parties saw the folly of sending their ships across the Atlantic in ballast, and a commercial treaty was concluded in 1815, which put the shipping of both America and England upon an equal footing, and relieved them from the necessity of paying double freight. The reciprocity system was also partially adopted in our commerce with other countries. In 1822 Mr. Wallace had brought in four Bills, which made other important alterations. The 3 George IV., cap. 41, repealed certain statutes relating to foreign commerce which were passed before the Navigation Act. Another Act (cap. 42) repealed that part of the Navigation Act itself which required that goods of the growth or manufacture of Asia, Africa, and America should only be imported in British ships; and that no goods of foreign growth or manufacture should be brought from Europe, except from the place of their production, and in the ships of the country producing them. The next enactment prescribed certain specified goods to be brought to Great Britain from any port in Europe, in ships belonging to the ports of shipment. Two other Acts further extended freedom of commerce, and removed the vexatious restrictions that had hampered our colonial and coasting trade. In 1823 Prussia retaliated, as the United States had done, which led Mr. Huskisson to propose what are called the Reciprocity Acts, 4 George IV., cap. 77, and 5 George IV., cap. 1, which empowered the king, by Order in Council, to authorise the importation and exportation of goods in foreign ships from the United Kingdom, or from any other of his Majesty's dominions, on the same terms as inBritish ships, provided it should first be proved to his Majesty and the Privy Council that the foreign country in whose favour the order was made had placed British ships in its ports on the same footing as its own ships. These enactments proved an immense advantage to the people of the nations affected by them, and satisfied all parties but the ship-owners, who cried out loudly that their interest was ruined. But their complaints were altogether unfounded, as will appear from the following figures. Under the restrictive system, from 1804 to 1823, the tonnage of British shipping had increased only ten per cent. Under the Reciprocity Acts and the Free Trade system, from 1823 to 1845, the increase rose to forty-five per cent. This result fully bore out the calculations and anticipations of Mr. Huskisson, in his answer to the arguments of the Protectionists.

THE ADMIRALTY, LONDON.

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Some remarkable commercial reforms were introduced by Robinson and Huskisson in 1824. In the previous year the Chancellor of the Exchequer was able to boast of a very large surplus, and this year he had a surplus of £1,050,000. Part of it was devoted to the repair and embellishment of Windsor Castle; £40,000 were devoted towards the erection of rooms for the reception of the library of George III., which was presented to the British Museum by his successor, whose gift, however, was somewhat discounted by the fact that he was with difficulty dissuaded from selling the collection. With £57,000 Government purchased Angerstein's collection of pictures, which became the nucleus of the National Gallery. But the main object of the Budget was not expenditure but economy. The Four per Cents. were redeemed or exchanged for Three-and-a-Half per Cent. Stock, and a death-blow was given to the old system of bounties by a reduction of that on the herring fishery and the immediate cessation of that on inferior kinds of linen, while that on the higher class of linen was annually decreased ten per cent. There was further a reduction of the duties on rum and coals, with the result, as Robinson prophesied, that lower prices considerably increased the consumption. His greatest innovations, however, concerned the wool and silk trades. In the former there prevailed a great conflict of interests. The agriculturistswished for the prohibition of foreign wool; the manufacturers desired the retention of an export duty, together with free importation. The judicious Chancellor effected a compromise by which the duty on foreign wool was reduced from 6d. to 1d. per pound, while the exportation of English wool was sanctioned on a similar duty. The fear of a large exportation of English wool proved so groundless that by 1826 only 100,000 pounds in weight had been exported, while 40,000,000 pounds of foreign wool had been introduced.

GEORGE III.'S LIBRARY, BRITISH MUSEUM.

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In much the same way the silk industry had been protected by prohibitory legislation, of which the only effect was to convert smuggling into an important trade. Again, the manufacturers petitioned for the removal of the duties upon spun silk, but were eager to exclude foreign manufactured silks. On the other hand, the silk spinners were opposed to the introduction of spun silk, but desired the removal of duties upon raw silk, while the journeymen believed that ruin stared them in the face if foreign manufactured silks were introduced. Robinson, with Huskisson's assistance, decided to admit foreign silk on anad valoremduty of 30 per cent. At the same time he largely reduced the duties on the raw material. The duty on Indian silk was reduced from 4s. to 3d., that on Chinese and Italian silks from 5s. 6d. to 6d., that on organzine from 14s. 10d. to 7s. 6d. a pound. The manufacturers vowed and protested that they were ruined; in ten years' time they were exporting to France, their former rival, £60,000 worth of manufactured silk.

High duties were not the only evils that had been strangling the silk trade. Its chief seat was at Spitalfields, where by the Act of 1811 and other legislation the magistrates had been empowered to fix the rate of wages, and to subject to severe penalties any masters who employed weavers in other districts. The result, said a manufacturers' petition in 1823, is, "that the removal of the entire manufacture from the metropolis is inevitable, if the Acts are to continue any longer in force." However, the journeymen declared that a repeal of the Acts would be followed by the reduction of their wages and the increase of the poor rates. No less than 11,000 petitioned against Huskisson's motion for a repeal, and,though the Bill passed the House of Commons by small majorities, it was so altered by amendments in the Lords that it was abandoned for the Session. But in this remarkable Session of 1824 it was reintroduced and passed through all its stages. As a result the Combination Acts directed against meetings of workmen to affect wages, the Acts which prevented the emigration of artisans, and the laws against the exportation of machinery were brought under discussion by Joseph Hume. The last question was waived for the present, but the laws interfering with the emigration of artisans were repealed without a voice being raised in their favour. As for the Combination Acts, it was ordained that no peaceable meeting of masters or workmen should be prosecuted as a conspiracy, while summary punishments were enacted on those "who by threats, intimidation, or acts of violence interfered with that freedom, which ought to be allowed to each party, of employing his labour or capital in a manner he may deem most advantageous." In consequence, however, of the outrages which occurred during the Glasgow strikes of 1824, during which a workman who disregarded the wishes of his union was shot, and men of one trade were employed to assassinate the masters of another, further legislation was necessary. By the Act of 1825 all associations were made illegal, excepting those for settling such amount of wages as would be a fair remuneration to the workman. Any other combination either of men against masters or of masters against men, or of working men against working men, was made illegal. The law thus framed continued to regulate the relations of capital and labour for nearly half a century.

Of course, the commercial changes introduced by Mr. Huskisson and Mr. Robinson excited loud murmurs of dissatisfaction from the interests affected, especially the shipping interest. But the best answer to objectors was the continuously flourishing state of the country. At the opening of the Session in 1825, Lord Dudley and Ward, in moving the Address in answer to the King's Speech in the Upper House, observed:—"Our present prosperity is a prosperity extending to all orders, all professions, and all districts, enhanced and invigorated by the flourishing state of all those arts which minister to human comfort, and those inventions by which man obtains a mastery over nature by the application of her own powers, and which, if one had ventured to foretell a few years ago, it would have appeared almost incredible." This happy state of things was the result of a legitimate expansion of trade. Manufacturers and merchants were at first guided by a spirit of sober calculation. The steady advance in the public securities, and in the value of property of all sorts, showed that the national wealth rested upon a solid basis. The extension of the currency kept pace with the development of trade and commerce, and the circulation of bankers' paper was enormously increased. But out of the national prosperity there arose a spirit of rash speculation and adventure, resulting in a monetary crisis. The issue of notes by country banks was under no restriction; no measures were taken to secure that their paper represented property, and could be redeemed if necessary. There were hundreds of bankers in the provinces who could issue any quantity of notes they pleased, and these passed as cash from hand to hand. The spirit of speculation and enterprise was stimulated to a feverish degree of excitement by the recognition of the states of Colombia, Mexico, and Buenos Ayres, formally announced in the King's Speech on the 3rd of February, which said that treaties of commerce had been made with those new states. The rich districts of South America being thus thrown open, there was a rush of capitalists and adventurers to work its inexhaustible mines. A number of companies was formed for the purpose, and the gains of some of them in a few months amounted to fifteen hundred per cent. The result was a mania of speculation, which seized upon all classes, pervaded all ranks, and threw the most sober and quiet members of society into a state of tumultuous excitement. Joint-stock companies almost innumerable were established, to accomplish all sorts of undertakings. There were thirty-three companies for making canals and docks, forty-eight for making railroads, forty-two for gas, twenty insurance companies, twenty-three banking companies, twelve navigation packet companies, five indigo and sugar companies, thirty-four metal companies, and many others. The amount of capital subscribed in these various companies, which numbered two hundred and seventy-six, was upwards of £174,000,000. In connection with South America there was the Anglo-Mexican Company, the Brazilian, the Colombian, Real de Monte, and the United Mexican. On the South American shares only ten pounds each had been paid, except the Real de Monte, on which £70 had been paid. We may judge of the extent to which gambling speculation was carried from the following statement of the market prices of the shares, in five of the principal mining companies, at two periods, December 10th, 1824, and January 11th, 1825:—

December 10th.January 11th.£s.d.£s.d.Anglo-Mexican330015800Brazilian01006600Colombian19008200Real de Monte550001,35000United Mexican35001,55000

In the course of this commercial madness the imports greatly exceeded the exports, and there was consequently a rapid drain of specie from the country. The drain of bullion from the Bank of England was immense. In August, 1823, it had £12,658,240, which in August, 1825, was reduced to £3,634,320, and before the end of the year it ran as low as £1,027,000. Between July, 1824, and August, 1825, twelve millions of cash were exported from Great Britain, chiefly to South America. During the Revolutionary war, which had lasted for fourteen years, the capital of the country had been completely exhausted, while all productive labour had been abandoned. The unworked mines were filled with water. They were accessible, it is true, to English speculators, but they were worked exclusively with English capital. The South American mining companies were so many conduits through which a rapid stream of gold flowed from Great Britain. The catastrophe that followed took the commercial world by surprise; even the Chancellor of the Exchequer failed to anticipate the disaster. On the contrary, his Budget of 1825 was based upon the most sanguine expectations for the future, and on the assurance that the public prosperity was the very reverse of what was ephemeral and peculiar, and that it arose from something inherent in the nation. Even at the prorogation of Parliament in July, the Royal Speech referred to the "great and growing" prosperity on which his Majesty had the happiness of congratulating the country at the beginning of the Session. The commercial crisis, however, with widespread ruin in its train, was fast coming upon Britain. Vast importations, intended to meet an undiminished demand at high prices, glutted all the markets, and caused prices to fall rapidly. Merchants sought accommodation from their bankers to meet pressing liabilities, that they might be enabled to hold over their goods till prices rallied. This accommodation the bankers were unable to afford, and sales were therefore effected at a ruinous loss. The South American mines, it was found, could not be worked at a profit, and they made no return for the twenty million pounds of British money which they had swallowed up. The effect was a sudden contraction of the currency, and a general stoppage of banking accommodation. The country banks, whose issues had risen to £14,000,000, were run upon till their specie was exhausted, and many of them were obliged to stop payment. The Plymouth Bank was the first to fail, and in the next three weeks seventy banks followed in rapid succession. The London houses were besieged from morning to night by clamorous crowds, all demanding gold for their notes. Consternation spread through all classes. There was a universal pressure of creditors upon debtors, the banks that survived being themselves upon the edge of the precipice; and the Bank of England itself, pushed to the last extremity, peremptorily refused accommodation even to their best customers. Persons worth one hundred thousand pounds could not command one hundred pounds; money seemed to have taken to itself wings and fled away, reducing a state of society in the highest degree artificial almost to the condition of primitive barbarism, which led Mr. Huskisson to exclaim, "We were within twenty-four hours ofbarter."

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, 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.

Such a tremendous crash in the commercial world could not have occurred without involving the working classes in the deepest distress. In order fully to understand all that society has gained by the instruction of the people, by extending to them the blessings of education, and especially by the diffusion of useful knowledge through the medium of cheap literature, we have only to read the records of popular disturbance and destructive violence which occurred in 1825 and 1826. In the August of the former year there was a combination of seamen against the shipowners at Sunderland; and on one occasion there was a riot, when a mob of some hundreds flung the crew of a collier into the sea. They were rescued from drowning, but, the military having fired on the rioters, five persons were killed. Their funeral was made the occasion of a great popular demonstration. There was a procession with flags, and a band of singers, twelve hundred seamen walking hand in hand, each with crape round the left arm. In the Isle of Man the people rose against the tithing of their potatoes, and were quieted only by the assurance that the tithe would not be demanded of them, either that year or at any future time. In the spring of 1826 the operatives of Lancashire rose up in open war against the power-looms, the main cause of the marvellous prosperity that has since so largely contributed to the wealth of England. They believed that the power-looms were the cause of their distress, and in one day every power-loom in Blackburn, and within six miles of it, was smashed; the spinning machinery having been carefully preserved, though at one time the spinning jennies were as obnoxious as the power-looms. The work of destruction was not confined to one town or neighbourhood. The mob proceeded from town to town, wrecking mill after mill, seizing upon bread in the bakers' shops, and regaling themselves freely in public-houses. They paraded the streets in formidable numbers, armed with whatever weapons they could lay hands on—scythes, sledge-hammers, and long knives. They resisted the troops fiercely, showering upon them stones and other missiles. The troops, in their turn, fired upon the crowds, and when they were dispersed the streets were stained with blood, the mob carrying away their wounded into the fields. In one week no less than a thousand power-looms were destroyed, valued at thirty thousand pounds. In Manchester the mob broke the windows of the shops. At Carlisle, Norwich, Trowbridge, and other places in England, similar lawless proceedings occurred. Even in Glasgow the blame of the general distress was thrown upon the machinery, not only by the ignorant operatives, but by the gentry and the magistrates. In Dublin the silk-weavers marched through the streets, to exhibit their wretchedness.

The distress was greatly aggravated, and spread over the whole country, by the extraordinary drought which prevailed in the summer of 1826. The richest meadows were burnt up. The stunted grain crops were only a few inches in height. The cattle, and even the deer in noblemen's parks, died from thirst. The people sat up all night to watch the springs, waiting for their turn to besupplied. Water was retailed in small quantities, and sold like beer. Those who occupied the more favoured districts sent jars of fresh water to their friends in other places, as most acceptable presents. In the midst of all this scarcity and suffering the Corn Laws stopped the supplies of provisions from abroad, which were ready to be poured in in any quantities. Bills had been passed with great difficulty through Parliament, to enable Government to relax the restrictions of the Corn Laws, in order to meet the emergency. But so clogged were those enactments with conditions, that in autumn Ministers were obliged to anticipate their operation by opening the ports, trusting to the legislature for an indemnity. It is melancholy to reflect upon the perplexities and miseries in which the country was involved through the mistaken views of the landed interest, then predominant in Parliament.

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