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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.[110]<024>
ONE:The advice of Pitt prevailed. Ministers determined to bring in two Acts in accordance with his counsels: an Act declaratory of the supreme[189] power of Parliament over the colonies, and another repealing the Stamp Act, on the plea which he had suggested. The Declaratory Act passed readily enough, for all parties agreed in it; but the repeal of the Stamp Act met with stout opposition. Grenville, with the pertinacity of a man who glories in his disgrace, resisted it at every stage. When he was hissed by the people, he declared that "he rejoiced in the hiss. If it were to do again, he would do it!" In the Lords there was a strong resistance to the repeal. Lord Temple, who had now deserted Pitt, supported his brother Grenville with all his might. Lords Mansfield, Lyttelton, and Halifax, the whole Bedford faction, and the whole Bute faction, opposed it. The king declared himself for repeal rather than bloodshed.

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TWO:An address, founded on this resolution, was carried to the king, who faithfully kept the word he had given nearly three years before. Chatham had then, through Lord North, sought to get his own pension continued to his second son, William Pitt, afterwards the celebrated Minister. On that occasion, George III. had declared that the conduct of Chatham of late had totally obliterated any sense of gratitude for his former merits; but that, when decrepitude or death should put an end to him as a trumpet of sedition, he would not punish the children for the father's sins, but would place the second son's name where Chatham's had been. He now consented to that; an annuity bill settled four thousand pounds a-year on the heirs of Chatham to whom the title should descend, which received the sanction of Parliament; and the Commons, moreover, voted twenty thousand pounds to pay the deceased Earl's debts. Both these motions passed the House of Commons unanimously; but, in the Upper House, the Duke of Chandos attacked the grants, and condemned severely the custom of loading the country with annuities in perpetuity. The bill was, however, carried by forty-two votes to eleven, though four noble Lords entered a protest against it, namely, Lord Chancellor Bathurst, the Duke of Chandos, Lord Paget, and Markham, Archbishop of York."THE POLLING."

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TWO:The death of no English statesman had ever produced a deeper feeling of grief throughout the nation, or more general expressions of lamentation at the irreparable loss which the country had sustained. Mr. Hume had a motion on the paper for the day following his death; but instead of proceeding with it, he moved the adjournment of the House, which was agreed to unanimously. Mr. Gladstone paid an eloquent and touching tribute to his memory, concluding with the lines

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[97]Nelson, who had returned to England, by the 15th of September was on board of his old flagship, the Victory, and immediately sailed for Cadiz, accompanied only by three other ships of war. On the 29th he arrived off Cadiz, and was received by the fleet with enthusiastic acclamation. It was his birthday. He posted himself about twenty leagues to the west of Cadiz, in hope that the French fleet would come out. He knew that it was in great distress for provisions, because Napoleon, intending the fleet to assemble at Brest, had laid in the necessary stores there, and could not convey them, in any reasonable time, to Cadiz. Still more, it was believed that Napoleon refused to send any supplies there, having given Villeneuve imperative orders to make his way to Brest. But it is also asserted, by French authorities, that Napoleon had ordered the Minister of Marine to take the command from Villeneuve, and that the admiral was piqued to show the Emperor, by a daring exploit, that he had done him injustice. Under these or similar motives, Villeneuve determined to sail out, and encounter the British fleet. Nelson was watching for him behind Cape St. Mary, like a cat watching a mouse, as he said in a letter to the Abb Campbell, of Naples, a friend of his and of Lady Hamilton's. On the 9th of October, certain that the enemy would soon come out, Nelson sent to Lord Collingwood his plan of the battle. It was to advance in two lines of sixteen ships each, with an advanced squadron of eight of the fastest-sailing two-decked ships. They were thus to break the enemy's line in three places at once. Nelson was to aim at the centre; Collingwood, leading the second line, to break through at about the twelfth ship from the rear; and the light squadron, at three or four ships from the centreNelson's point of attack. "I look," wrote Nelson, "with confidence to a victory before the van of the enemy can succour their rear; and then the British fleet will, most of them, be ready to receive their twenty sail of the line, or to pursue them, should they endeavour to make off. If the van of the enemy tack, the captured ships must run to the leeward of the British fleet; if the enemy wear, the British must place themselves between them and the captured and disabled British ships, and, should the enemy close, I have no fear for the result. The second in command will, in all possible things, direct the movements of his line by keeping them as compact as the nature of the circumstances will admit. Captains are to look to their particular line as their rallying-point; but, in case signals cannot be clearly seen or understood, no captain can do very wrong if he places his ship alongside that of the enemy!" Such were Nelson's general orders, and they were entirely approved by Lord Collingwood.LOUIS XVI. AND MARIE ANTOINETTE IN THE PRISON OF THE TEMPLE.[See larger version]The history of Hume was much over-estimated in his own time, in spite of the despotic notions which abound in it. It was held up as a marvel of eloquence and acuteness. But after times always correct the enthusiasm of contemporaries, and Hume's history has been found not in every case trustworthy. When we now, indeed, take up Hume, we are surprised to find it a very plain, clear narrative of events, with many oversights and perversions, and nothing more. We wonder where are the transcendent beauties which threw our readers of the eighteenth century into raptures for which language scarcely gave expression. Whoever will read the correspondence of contemporaries with Hume, will find him eulogised rather as a demi-god than a man, and his works described in extravagant strains of praise.
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