TWO:It is said that Sir Robert had, some time before, addressed a letter to the Pretender with the object of softening the asperity of his partisans in England, and that this had so raised the hopes of James, that Walpole was actually intending to come round, that he had ordered his followers to avoid anything which should shake his power. Whatever the cause, the fact was striking, and the Opposition having concluded its onslaught upon him, he rose to make his reply. It was an occasion which demanded the utmost exertion of his powers, and he put them forth. Walpole's speech on this day has justly been deemed his masterpiece. It was four o'clock in the morning when he concluded his masterly defence, and the motion was instantly rejected by two hundred and ninety votes against one hundred and six. The immediate effect of the attack appeared to be to strengthen the Minister, and that considerably; his leve the next morning was more crowded than had ever been known, and he seemed to sway the Cabinet with uncontrolled power. But thinking men predicted that the blow would tell in the end, when the momentary enthusiasm had gone off; and Walpole himself seemed to be of the same opinion. The attack, in truth, was but the first outbreak of the storm which, kept up by the implacable spirit of a powerful Opposition, was sure to bear him down at last.
THREE: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 of barter."[See larger version]
TWO:Mr. Robert Johnson, made judge of Common Pleas 3,300In the Christmas recess Chatham hastened to Bath, to improve his health for the campaign of the ensuing Session; but when Parliament met again, in the middle of January, 1767, Ministers were in consternation at his not reappearing. The Duke of Grafton and Beckford, who were his most devoted adherents, were thunderstruck. They found it impossible to keep in order the heterogeneous elements of the Cabinet. All the hostile qualities, which would have lain still under the hand of the great magician, bristled up, and came boldly out. The spirit of Bedford, of Newcastle, and of Rockingham, was active in their partisans, and gathered courage to do mischief. Lord Shelburne and the Duke of Grafton became estranged; Charles Townshend, who had as much ambition and eccentricity as talent, began to show airs, and aim at supremacy. Grafton implored Chatham to come to town if possible, and when that was declared impracticable, to allow him to go down, and consult with him in his sick chamber. But he was informed that the Minister was equally unable to move or to consult.
