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The year 1797 was opened by the suspension of cash payments. The Bank of England had repeatedly represented to Pitt, as Chancellor of the Exchequer, that his enormous demands upon it for specie, as well as paper money, had nearly exhausted its coffers and could not long be continued. The payment of our armies abroad, and the advances to foreign kings, were necessarily made[455] in cash. The Government, in spite of enormous taxation, had already overdrawn its account eleven million six hundred and sixty-eight thousand eight hundred pounds, and the sole balance in the hands of the Bank was reduced to three million eight hundred and twenty-six thousand eight hundred and ninety pounds. Pitt was demanding a fresh loan for Ireland, when a message came from the Bank to say that, in existing circumstances, it could not be complied with. Thus suddenly pulled up, the Privy Council was summoned, and it was concluded to issue an order for stopping all further issue of cash, except to the Government, and except one hundred thousand pounds for the accommodation of private bankers and traders. Paper money was made a legal tender to all other parties, and the Bank was empowered to issue small notes for the accommodation of the public instead of guineas. A Bill was passed for the purpose, and that it might not be considered more than a temporary measure, it was made operative only till June; but it was renewed from time to time by fresh Acts of Parliament. The system was not abolished again till 1819, when Sir Robert Peel brought in his Bill for the resumption of cash payments, and during the whole of that time the depreciation of paper money was comparatively slight.In London, notwithstanding, there was considerable alarm, but rather from fear of the Papists and Jacobites at home than of any danger from abroad. Every endeavour had been used, in fact, to revive the old Popery scare. There were rumours circulated that the Papists meant to rise, cut everybody's throats, and burn the City. There was fear of a run on the Bank of England, but the merchants met at Garraway's Coffee-house, and entered into engagements to support the Bank. They also opened a subscription to raise two hundred and fifty thousand pounds to enlist troops, and many of them gave as much as two thousand pounds apiece. A camp was formed in Hyde Park of the Household Troops, horse and foot, a regiment of horse grenadiers, and some of the battalions that came over from Flanders. In the provinces many of the great nobility proposed to raise regiments at their own expense, and this act of patriotism was loudly applauded. In some instances the patriotism was real. But the main body of the Whig nobility and some others cut a very different figure. No sooner did Parliament meet on the 18th of October, and whilst the Jacobites were in the highest spirits, and opposing both the Address and the suspension of the Habeas Corpus, than the Dukes of Devonshire, Bedford, Rutland, Montague, the Lords Herbert, Halifax, Cholmondeley, Falmouth, Malton, Derby, and others, moved, contrary to their splendid promises, that their regiments should be paid by the king, and should be put upon the regular establishment. The king was as much disgusted as the most independent of his subjects, but he found himself unable to prevent the measure.[See larger version]<024>
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THREE:Commodore Hotham, with only five ships of the line, a bomb-vessel, and some frigates, conveyed Major-General Grant and this force to the West Indies, being nearly the whole way within a short sail of D'Estaing and his much superior fleet, without knowing it. Grant's destination was to protect Dominica; but, before his arrival, Marshal de Bouill, Governor-General of Martinique, had landed with two thousand men, and had compelled Lieutenant-Governor Stewart, who had only about one hundred regular troops and some indifferent militia for its defence, to surrender. Grant being too late to save Dominica, turned his attention to St. Lucia, being conveyed thither by the joint fleet of Hotham and Barrington. They had scarcely made a good footing on the island when D'Estaing's fleet hove in sight. He had twelve sail-of-the-line, numerous frigates and transports, and ten thousand men on board, and the English would have had little chance could he have landed. But the British fleet resolutely attacked him, and, after several days' struggle, prevented his landing more than half his troops. These were so gallantly repulsed by Brigadier Medows, who was at the head of only one thousand five hundred men, that, on the 28th December, D'Estaing again embarked his troops, and quitted the island. The original French force under Chevalier de Michaud then surrendered, and St. Lucia was won, though Dominica was lost.In 1821, 7,250,000 lbs. of coffee were consumed by fourteen millions of people in Great Britain. In 1824 the consumption of coffee in the United Kingdom was 8,250,000 lbs., and the duties wereon foreign coffee, 2s. 6d. per lb.; East India, 1s. 6d.; British West India, 1s. per lb. In the same year the consumption wasof foreign coffee, 1,540 lbs.; East India, 313,000 lbs.; West India, about 800,000 lbs. In the following year Mr. Huskisson reduced the duties on these several kinds to 1s. 3d., 9d., and 6d., respectively, which caused a rapid increase in the consumption. In 1840 the consumption wasof East and West India, 14,500,000 lbs.; and of foreign, 14,000,000 lbs. In 1841, 27,250,000 lbs. were consumed by eighteen and a half millions of people. The tea trade with China was used by the East India Company for the purpose of enriching itself by an enormous tax upon the British consumer. During one hundred years it ranged from 2s. to 4s. in the pound excise duty, with a customs duty of 14 per cent., down to a total minimum duty of 12? per cent. The former duty was estimated at 200 per cent. on the value of the common teas. The effect, as might be expected, was an enormous amount of smuggling. The monopoly of the Company was abolished; it was made lawful for any person to import tea by the Act 4 William IV., c. 85; and the trade was opened on the 22nd of April, 1834. The ad valorem duties were abolished, and all the Bohea tea imported for home consumption was charged with a customs duty of 1s. 6d. per lb.; Congou and other teas of superior quality were charged 2s. 2d. per lb., and some 3s. per lb. In 1836 these various duties gave place to a uniform one of 2s. 1d. per lb., which, with the addition of 5 per cent., imposed in 1840, continued till 1851, when the penny was removed. During the last year of restricted trade (1833) our aggregate importations amounted to 32,000,000 lbs.; during the first year of Free Trade, they bounded up to 44,000,000 lbs.; and in 1856 they had attained to 86,000,000 lbs. The average price of tea per lb., including duty, in 1834, was 4s. 4d. In 1821 the total quantity of tea imported into Great Britain was upwards of 31,000,000 lbs., and its value 1,873,886; in 1834 the quantity was about 35,000,000 lbs., and the value about 2,000,000. In 1837 the quantity was about 40,000,000 lbs.

By Elena Smith

THREE:The Home Secretary once more submitted his views to the Duke, in a memorandum dated January 12th, that was written with a view to being submitted to the king, in which he put the inevitable alternative of a Cabinet united in the determination to carry Catholic Emancipation, or a Cabinet constructed on exclusively Protestant principles; and he came to the conclusion that no Cabinet so constructed could possibly carry on the general administration of the country. The state of the House of Commons appeared to him to be an insuperable obstacle to the successful issue of that experiment. Since the year 1807 there had been five Parliaments, and in the course of each of these, with one exception, the House of Commons had come to a decision in favour of the consideration of the Catholic question. The present Parliament had decided in the same manner. A dissolution, were it practicable, would not result in an election more favourable to the Protestant interest, if an exclusively Protestant Government were formed. Even should there be an increase of anti-Catholic members in England, it would not compensate for the increased excitement in Ireland, and the violent and vexatious opposition that would be given by fifty or sixty Irish members, returned by the Catholic Association and the priests. Then there would be the difficulty about preserving the peace in Ireland. During the last autumn, out of the regular infantry force in the United Kingdom, amounting to about 30,000 men, 25,000 men were stationed either in Ireland or on the west coast of England, with a view to the maintenance of tranquillity in Ireland, Great Britain being then at peace with all the world. What would be the consequence should England be involved in a war with some foreign Power? Various other considerations were urged, upon which Mr. Peel founded his advice to the king, which wasthat he should not grant the Catholic claims, or any part of them, precipitately and unadvisedly, but that he should, in the first instance, remove the barrier which prevented the consideration of the Catholic question by the Cabinet, and permit his confidential servants to consider it in all its relations, on the same principles on which they considered any other question of public policy, in the hope that some plan of adjustment could be proposed, on the authority and responsibility of a Government likely to command the assent of Parliament and to unite in its support a powerful weight of Protestant opinion, from a conviction that it was a settlement equitable towards Roman Catholics and safe as it concerned the Protestant Establishment.[314]

By Elena Smith

[529][See larger version]After violent debates on the subject of Catholic emancipation, but with the usual negative result, Parliament was prorogued on the 24th of July. Ministers proceeded to prosecute the war in the Peninsula with increased vigour. Lord Wellington needed all the support they could give him. Notwithstanding his success and the millions of money that Great Britain was sending to Portugal, the Portuguese Government continued to annoy him, and showed itself as ignorant, as meddling and as unthankful as the Spaniards had done. Though he and his army were the sole defence of the country, which would at once have been overrun by the French were he not there, and though he was fighting their battles and defending their persons at the expense of England, they appeared to have not the slightest sense of these obligations, but continued to pester him on every possible occasion. They endeavoured to compel him to maintain the Portuguese army, too, by themselves neglecting to furnish it with pay and provisions. They demanded to have the expenditure of the very money remitted for the needs of the British forces. They raised a vast clamour because the soldiers cut down timber for firewood. To all these disgraceful annoyances Lord Wellington replied with a wonderful command of temper, but with firmness and plain-spokenness. His dispatches abound with complaints of the scurvy treatment of the Portuguese authorities. The aspect of things in Spain was worse. There the Spaniards continued to lose every force that they raised, but nevertheless to criticise all the movements of Wellington as if they knew, or had shown, that they understood the management of campaigns better than he did. In fact, if the interests of Spain and Portugal alone had been concerned, the best thing would have been to have quietly withdrawn, and have left the French to trample on them, as a proper punishment for their stupid and ignorant pride. But the attention which Wellington compelled Buonaparte to give to the Peninsula, and the constant drain which this war was to him of men and money, were enabling Russia, and Sweden, and the north of Germany to prepare for another and decisive struggle with the oppressor.
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