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The unnatural state of things induced by the war had now brought about a great change in our currency. As we could manage to get in our goods to the Continent by one opening or another, but could not get the produce of the Continent in return, it would have appeared that we must be paid in cash, and that the balance of specie must be in our favour; but this was not the case. By our enormous payments to our troops in Spain, Portugal, and Sicily, as well as in the East and West Indies, and by our heavy subsidies, gold had flowed out of the country so steadily that there appeared very little left in it, and bank paper had taken its place. On the Continent, impoverished as they were, the people tenaciously clung to their gold, and Buonaparte alone could draw it from them in taxes. He always took a heavy military chest with him on his expeditions, and his officers also carried the money necessary for themselves in their belts, or otherwise about their immediate persons. The gold being enormously diminished in quantity in England, was carefully hoarded on all hands, thus again increasing the scarcity, and raising the value of it. The price of bullion had risen from twenty to thirty per cent., and here was a further strong temptation to hoard or send guineas to the melting-pot. This state of things led a certain class of political economists to call for a repeal of the Act for suspension of cash payments, and Francis Horner obtained a committee of inquiry into the causes of the decrease of gold and the increase of paper: and this committee came to the conclusion that the true cause of the evil lay in the excess of paper, and that the way to restrain it would be to allow the demand for gold at the Bank. But the truth was that the cause of the evil was not the excess of paper, but the enormous diminution of gold; and to have opened a legal demand for gold which could not be had would only have produced a panic, and a complete and horrible assassination of all credit and all business. But there were clearer-sighted men in Parliament, who declared that, though bullion had risen in price, bank-notes would still procure twenty shillings' worth of goods in the market, and that they were not, therefore, really depreciated in value. That was true, but guineas had, notwithstanding, risen to a value of five- or six-and-twenty shillings, and might be sold for that. Gold had risen, but paper had not fallen; and gold could not take the place of paper, because it did not, to any great extent, exist in the country; if it had, paper must have fallen ruinously. Mr. Vansittart and his party, therefore, moved resolutions that the resumption of cash payments being already provided for six months after the conclusion of peace, was an arrangement which answered all purposes, and ought not to be disturbed; that this would keep all real excess of paper in check, and leave gold to resume its circulation when, by the natural influence of peace, it flowed again into the country. These were, accordingly, carried.

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[See larger version]Before this great measure had passed, Pitt had introduced his Budget. On the 30th of June he made his financial statement. He said that the resources of the country were in a very burthened and disordered state; but that was not his work, but the work of his predecessors. The outstanding arrears, owing to the late war, were already ascertained to amount at least to fourteen million pounds. These operated very injuriously on the public credit, being at a discount of from fifteen to twenty per cent.; and that without greatly[308] affecting the public securities, he should not be able to find more than six million six hundred thousand six hundred pounds of them at once. To meet the interest, he proposed to raise taxes to the amount of nine hundred thousand pounds a year. The impostssome entirely new, and some augmentedwere on hats, ribbons, gauzes, coals, saddle and pleasure horses, printed linens and calicoes, candles, paper, and hackney coaches; licences to deal in excisable commodities, bricks, and tiles; licences for shooting game.
ONE:Meanwhile Lord Howe had been on the look-out some time for the French fleet, which, it was understood, was about to leave Brest, in order to meet a convoy of merchant ships from the West Indies, and aid it in bringing that trade fleet into port. On reaching Brest, however, he discovered that the French fleet had sailed, and it was not till the 28th of May that he caught sight of it out at sea, opposite the coast of Brittany. The French fleet, commanded by Admiral Villaret Joyeuse, was greatly superior to Howe's in ships, number of seamen, and weight of metal. Howe had twenty-five sail of the line and five frigates, carrying two thousand and ninety-eight guns, in weight of metal twenty-one thousand five hundred and nineteen pounds, and sixteen thousand six hundred and forty-seven men. Joyeuse, now joined by Admiral Neilly, had twenty-six line-of-battle ships and smaller vessels, carrying two thousand one hundred and fifty-eight guns, in weight of metal twenty-five thousand five hundred and twenty-one pounds, and nineteen thousand eight hundred and twenty-eight men. After some skirmishing, on the 1st of June"the glorious first"Howe came to close quarters with the enemy, who was compelled to fight by the presence of the Conventional Commissioner Bon St. Andr. He ordered his fleet to follow his ship, the Charlotte, in cutting right through the enemy's line. Only five ships, however, accomplished this so as to engage the French to the leeward, and prevent them from escaping. Howe afterwards complained that some of his captains had not obeyed his orders, and threatened them with a court-martial; but some replied that their ships were in such bad sailing condition that they could not effect this movement, and others that they did not understand the signal. Thus, five vessels fighting to the leeward, and the rest to the windward, the battle raged furiously from nine in the morning till three in the afternoon, when the French admiral sheered off for Brest, leaving behind seven of his finest vessels in the hands of the British. The British lost in the action two hundred and seventy-nine men, and had eight hundred and seventy-seven wounded. The French lost in six of the captured ships alone six hundred and ninety men, and had five hundred and eighty wounded. The seventh, the Vengeur, went down almost as soon as the British flag was hoisted on her, with, it is supposed, three hundred men in her. Altogether, it is likely that the French did not lose less than fifteen hundred men, besides wounded, and two thousand three hundred prisoners. The British lost a number of officers, who were either killed in the battle or died afterwards of their injuries Amongst these were Sir Andrew Douglas, second captain of Howe's own ship; Captains Montagu of the Montagu, Hutt of the Queen, and Harvey of the Brunswick; Rear-Admirals Pasley of the Bellerophon, and Bowyer of the Barfleur. Admiral Graves and Captain Berkeley were severely wounded. Howe made every effort to pursue and bring the French admiral again to action; but, owing to the bad sailing qualities of English ships at that time, and the shattered state of many of them, he could not overtake Villaret, who made the best of his way to Brest. During the remainder of the year there were various engagements between small squadrons in different quarters, in which the advantage generally remained with the British, besides the training thus afforded to the officers and sailors for the mighty victories which awaited them.The number of places in which the inquiries under the commission were carried on was 237, having a population of 2,028,513. In twenty-five places the number of corporators was not ascertained; in the others (212) they amounted to 88,509. The governing body was self-elected in 186 boroughs. This body elected the mayor in 131 boroughs, appointed the recorder in 136, and the town-clerk in 135. The number of corporators exercising magisterial functions was 1,086, in 188 boroughs. In 112 boroughs the corporations had exclusive criminal jurisdiction, extending to the trial of various descriptions of offences, and in forty-two their jurisdiction was not exclusive. Seventeen boroughs did not enjoy any income whatever; in eight the precise amount could not be obtained. The total income of 212 boroughs amounted to 366,948; their expenditure to 377,027. 103 were involved in debts amounting to 1,855,371, and were besides burdened with annuities amounting to 4,463. In twenty-eight boroughs only were the accounts published; in fifteen the annual income was under 20; in eleven it was between 2,000 and 3,000; in five, 3,000, and under 4,000; in one, 4,000, and under 5,000; in four, 5,000, and under 7,500; in five, 10,000, and under 12,500; in one, 12,500, and under 15,000; in one, 15,000, and under 20,000; and in one, 91,000.
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Louis Philippe, King of the French, had been the subject of constant eulogy for the consummate ability and exquisite tact with which he had governed France for seventeen years. It was supposed that the "Citizen King" had at length taught his restless and impulsive subjects the blessings of constitutional government, and that they were perfectly contented with the free institutions under which it was now their happiness to live. Guizot, regarded as one of the greatest statesmen on the Continent, was at the head of affairs in 1847, and it was hoped that his profound wisdom and keen sagacity would enable him to guard the state against any dangers with which it might be threatened by the Legitimists on one side or the Democrats on the other. But the whole aspect of public affairs in France was deceptive, and the unconscious monarch occupied a throne which rested on a volcano. The representative government of which he boasted was nothing but a shama gross fraud upon the nation. The basis of the electoral constituency was extremely narrow, and majorities were secured in the Chambers by the gross abuse of enormous government patronage. The people, however, saw through the delusion, and were indignant at the artifices by which they were deceived. The king, who interfered with his Ministers in everything, and really directed the Government, was proud of his skill in "managing" his Ministry, his Parliament, and the nation. But the conviction gained ground everywhere, and with it arose a feeling of deep resentment, that he had broken faith with the nation, that he had utterly failed to fulfil his pledges to the people, who had erected the barricades, and placed him upon the throne in 1830. The friends of the monarchy were convinced that it could only be saved by speedy and effectual reform. But the very name of Reform was hateful to the king, and his aide-de-camp took care to make known to the members of the Chambers his opinions and feelings upon the subject. M. Odillon Barrot, however, originated a series of Reform banquets, which commenced in Paris, and were held in the principal provincial cities, at which the most eminent men in the country delivered strong speeches against political corruption and corrupters, and especially against the Minister who was regarded as their chief defenderGuizot.In the spring of 1814 the Americans made a fresh attempt to invade Canada. Wilkinson, who had retreated so precipitately the preceding autumn, was the first to cross the frontier; but he was repulsed and pursued to Sacketts Harbour, where he took refuge. The British burned some of his block-houses and barracks, and carried off great quantities of stores. In April General[108] Drummond, being put across Lake Ontario by Sir James Yeo's squadron, stormed Fort Oswego, destroyed it, and burnt the barracks. In May the British were not so successful in intercepting some naval stores which the Americans were conveying to Sacketts Harbour. They were repulsed with loss. At the beginning of July the American general, Brown, crossed the Niagara with a strong force, attacked and took Fort Erie, and advanced into Canada. General Riall attempted to stop him at Chippeway, with an insufficient force, and was compelled to retreat to near Fort Niagara. There he was reinforced by General Drummond, with a detachment of the troops recently landed from the army of the Peninsula. Riall and Drummond had now about three thousand men, and Brown had five thousand. A severe battle was fought, almost close to the cataract of Niagara, where the veteran Peninsular men defeated Brown, killing and wounding one thousand five hundred of his troops, but having six hundred killed and wounded themselves. They pursued Brown to Chippeway, and thence to Erie. There Drummond rashly attempted the reduction of the fort with his inferior numbers, and was repulsed with loss.[See larger version]
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