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ONE:It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.At the very time he received this appointment he was actually in correspondence with Colonel Robinson, an officer of General Clinton's staff, declaring that he was become convinced of the more righteous cause of the mother country, and that he was prepared to testify this by some signal service to his king. It was at the beginning of August of the present year when Arnold assumed his command at West Point; and Clinton lost no time in opening a direct correspondence with him, through which such singular advantages were offered. Sir Henry Clinton employed as his agent in this correspondence a young officer of high promise in his profession and of considerable literary talents, Major John Andr��, Adjutant-General and aide-de-camp to Sir Henry. As Clinton was naturally anxious to bring this hazardous correspondence to a close, he pressed Arnold to come to a speedy decision, offering him rank in the army and a high reward in return for the promised services��namely, the surrender of West Point, with all its dependent forts and stores, including, as a matter of course, the command of the Hudson, and the terror and distrust which this act would spread through the American army. The absence of Washington at the meeting with Rochambeau at Hartford was seized on as a proper opportunity for a personal and final conference on the subject. Major Andr�� was selected by General Clinton to meet Arnold on neutral ground. The place selected was on the western bank of the Hudson, and Clinton strongly enjoined him to enter on no account within the American lines, to assume no disguise, nor to be the bearer of any written documents. Day dawned before the whole preliminaries were settled, though the chief point was determined��namely, that West Point should be surrendered to the English on the following Monday. Andr�� was prevailed on to remain with Arnold the greater part of the day; and then, on going down to the shore, he found that the boatman who had brought him out refused to carry him back. When Andr�� returned to Arnold at Smith's house, he gave him a pass, and advised him to travel by land to King's Ferry, and there to cross. He insisted that for this purpose he must assume a disguise, and travel under his assumed name of John Anderson. So little was Andr�� apprehensive of danger, that he not only disobeyed the injunction of his[278] commander-in-chief in this particular, but in the far more important one of carrying written papers, which he concealed in his boot.

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