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THREE:A great portion of the present Session was[143] occupied with discussing the return to cash payments, which, by the Act of Parliament, ought to take place on the 5th of July of this year. It appears that no less than fifty debates and conversations in both Houses took place on this important subject during the Session. Very soon after the meeting of Parliament a secret committee of each House was appointed to inquire into the state of the Bank. These committees were, however, so managed, by delivering to the members lists of suitable persons for such committees, that scarcely any but Ministerial men were voted, though these votes were given by ballot. In the Commons this result was so evident that the Opposition declined to vote at all. The first reports of the committees went rather to close more strictly than to open the issue of gold by the Bank. It had been paying in gold its notes issued previous to January, 1817. This payment it was proposed to stop, as, at present, evidently injurious to the interests of the country. Mr. Peel, on moving for a Bill for this purpose, stated that the gold at the present price was fast finding its way abroad, and was as rapidly absorbed in re-minting a gold coinage for France. It appeared that during the first half of 1818 gold to the value of no less than one hundred and twenty-eight million francs had been coined at the French mint, of which three-fourths were derived from the gold coinage of England. A Bill was accordingly passed to stop payment altogether in gold till the necessary preparations were made by a fresh Bill. Still, the condition of the Bank was represented as flourishing. Its liabilities were stated in January, 1819, as amounting to thirty-three million eight hundred and ninety-four thousand five hundred and eighty pounds; its assets, including the debt due from Government, fifty-three million seven hundred and eighty-three thousand seven hundred pounds. The total Bank surplus appeared to be nineteen million eight hundred and eighty-nine thousand one hundred and twenty pounds; and its surplus, independent of the Government debt, and therefore available for current use, was five million two hundred and two thousand three hundred and twenty pounds. The committees adopted the scheme broached by Mr. Ricardo in his "Proposals for an Economical and Secure Currency," published in 1816. This was that the Bank, in the first instance, should not pay for its notes in gold coin, but in ingots of a certain weight, its fineness being attested by a stamp; and this degree of purity should be regulated from time to time till the gold descended to the Mint price of three pounds seventeen shillings and tenpence-halfpenny per ounce. When the Mint gold at length reached this rate of value, then the payment in coin was to be begun. Resolutions to this effect were moved by the Earl of Harrowby on the 21st of May, and they received the approval, not only of the Ministerial side, but of the leading Opposition members, Lords Grenville, Lansdowne, and King.The inhabitants, men, women, and children, fled in terror from their splendid villas, around the city, into the fort of St. George. A fast-sailing vessel was dispatched to Calcutta, to implore the Governor-General to send them speedy aid of men and money. The forces were called together from different quarters, and Sir Hector Munro at the head of one body, and Colonel Baillie at the head of another, were ordered to combine, and intercept Hyder. First one place of rendezvous and then another was named, but, before the junction could take place, Baillie had managed to allow himself to be surrounded by the whole host of Hyder, and after a brave defence was compelled to surrender, one half of his troops being cut to pieces. The insults and cruelties of the troops of Hyder to their captives were something demoniac. Munro had sent to demand troops from the Nabob of Arcot, for whom the British were always fighting, and received a message of compliments, but no soldiers. On the defeat of Baillie he made a hasty retreat to Mount St. Thomas. Meanwhile, the call for aid had reached Calcutta, and Hastings instantly responded to it with all his indomitable energy. He called together the Council, and demanded that peace should be made at once with the Mahrattas; that every soldier should be shipped off at once to Madras; that fifteen lacs of rupees should be sent without a moment's delay to the Council there; that the incompetent governor, Whitehill, should be removed; and Sir Eyre Coote sent to perform this necessary office, and take the command of the troops. Francis, who was just departing for England, raised as usual his voice in opposition. But Hastings' proposals were all carried. The troops, under Sir Eyre Coote, were hurried off, and messengers dispatched in flying haste to raise money at Moorshedabad, Patna, Benares, Lucknow��in short, wherever the authority of Hastings could extort it. At the same time, other officers were sent to negotiate with the Mahrattas for peace.

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THREE:Meanwhile, Buonaparte, summoned by the Directory to take the command of the army of England, had arrived in Paris on the 5th of December, 1797, and had taken up his abode in his former residence, in the Rue Chantereine, which the Commune immediately changed, in honour of the conquest of Italy, into the Rue de la Victoire. But it was necessary that Buonaparte should prepare for the invasion of England, for which purpose he had been called home. All France was in transports of joy at the thought of seeing England at last overrun. The Directory had raised their cry of "Delenda est Carthago!" "It is at London," they said, "that all the misfortunes of Europe are manufactured; it is in London that they must be terminated." On the 8th of February, 1798, Napoleon left Paris to obtain information as to the coasts of the English Channel, preparatory to the sailing of the armament. He visited ��taples, Ambleteuse, Boulogne, Calais, Dunkirk, Furnes, Nieuwport, Ostend, and Walcheren, making at these different ports the necessary surveys, and holding long and earnest conversations with sailors, pilots, smugglers, and fishermen. He returned to Paris on the 22nd, having, in a fortnight, quite satisfied himself that the attempt had better be relinquished so long as England commanded the sea.Meanwhile, the American emissaries were both busy and successful at the Court of France. Though the Government still professed most amicable relations towards Great Britain, it winked at the constant sale of the prizes taken by American privateers, or those who passed for such, in their ports. The Government had, as we have seen, supplied the insurgents with money and arms. It was now arranged between Silas Deane and the French Minister, Vergennes, that the supplies of arms and ammunition should be sent by way of the West Indies, and that Congress should remit payment in tobacco and other produce. The French Government supplied the American agents with money for their purchases of arms and necessary articles for the troops, also to be repaid in tobacco. Two of the ships sent off with such supplies were captured by the British men-of-war; but a third, loaded with arms, arrived safely. To procure the money which they could not draw from Europe, Congress made fresh issues of paper money, though what was already out was fearfully depreciated. They voted a loan also of five millions of dollars, at four per cent. interest. They authorised a lottery to raise a like sum, the prizes to be payable in loan-office certificates. These measures only precipitated the depreciation of the Government paper; people refused to take it; and Washington, to prevent the absolute starvation of the army, was endowed with the extraordinary power of compelling the acceptance of it, and of arresting and imprisoning all maligners of the credit of Congress. Congress went further, and passed a resolution that their bills ought to pass[237] current in all payments, trade, and dealings, and be deemed equal in value to the same sum in Spanish dollars; and that all persons refusing to take them should be considered enemies to the United States; and the local authorities were called upon to inflict forfeitures and other penalties on all such persons. Still further: the New York convention having laid before Congress their scheme for regulating the price of labour, produce, manufactured articles, and imported goods, it was adopted. But these arbitrary and unscientific measures the traders set at defiance, and the attempts to enforce them only aggravated the public distress. Loans came in slowly, the treasury ran low, the loan offices were overdrawn, and the issue of bills of credit was reluctantly recommenced; ten additional millions were speedily authorised, and as the issue increased, the depreciation naturally kept pace with it. The Commissioners in France were instructed to borrow money there, but the instructions were more easily given than executed.

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