tion of those principles at once of corruption and regeneration which are combined in humanity; and which, universal in communities as in single men, compensate the necessary decline of nations by the vital fire which has given an undecaying youth to the human race. CHAPTER XLII. FROM THE PEACE OF PRESSBURG TO THE RENEWAL OF THE CONTINENTAL WAR. JANUARY-OCTOBER 1806. 1. THE peace of Pressburg seemed to have finally subjected the Continent to the empire of France. The greatest and most formidable coalition which had ever been arrayed against its fortunes was dissolved. The military strength of Austria had received, to all appearance, an irreparable wound; Prussia, though irritated, was overawed, and had let the favourable moment for striking a decisive blow elapse without venturing to draw the sword; and even the might of Russia, hitherto held in undefined dread by the states of southern Europe, had succumbed in the conflict, and the northern autocrat was indebted to the generosity of the victor for the means of escaping from the theatre of his overthrow. When such results had been gained with the great military monarchies, it was of little moment what was the disposition of the lesser powers; but they, too, had been terrified into submission, or retired from a contest in which success could no longer be hoped for. Sweden, in indignant silence, had withdrawn to the shores of Gothland; Naples was overrun; Switzerland was mute; and Spain consented to yield its fleets and its treasures to the conqueror of northern Europe. England, it is true, with unconquerable resolution and unconquered arms, still continued the contest; but after the prostration of the Continental armies, and the destruction of the French marine, it appeared no longer to have an intelligible object; while the death of the great statesman who had ever been the uncompromising foe of the Revolution, and the soul of all the confederacies against it, led to a well-founded expectation that a more pacific system of government might be anticipated on the part of his successors. 2. The hopes entertained by Napoleon of such a temporary accommodation with England as might leave him at liberty, by fostering his naval power, to prepare the means of its final subjugation, were soon to all appearance likely to be realised. The death of Mr Pitt dissolved the administration of which he was the head. His towering genius could ill bear a partner in power or rival in renown. Equals he had none-friends few; and with the exception of Lord Melville, whom the pending accusation had compelled to retire from government, perhaps no statesman had ever possessed his unreserved confidence. There were many men of ability and resolution in his cabinet, but none of weight sufficient to take the helm when it dropped from his hands; and when he sank into the grave, the ministry, which was supported by his single arm, fell to the earth. The King, indeed, who was aware of the danger of introducing a change of policy in the midst of a desperate conflict, and still retained a keen recollection of the humiliation to which he had been subjected in consequence of the India bill introduced by the Whigs in 1784, made an attempt to | and vehemence of declamation; and the continue the government in the hands vote against Lord Melville in the House of the same party, and immediately of Commons had shaken the opinion after Mr Pitt's death commissioned of numbers in the integrity of governLord Hawkesbury to form a new ad- ment, in that point where Mr Pitt's administration on the same basis. But ministration had hitherto been regarded that experienced and cautious states- as most pure. The Tories, it was said, man soon perceived that the attempt, are exhausted by perpetual service for at that period at least, was impossible, twenty years; the hopes of the state and the only use he made of his short- are to be found in the ranks of the lived power was the dubious one of Whigs; or, at all events, the time has accepting the wardenship of the Cinque now arrived when those absurd party Ports, which had been held by Mr distinctions should cease, and all true Pitt, and was the most lucrative sine- friends to their country, on whichever cure in the gift of the crown. This side of politics, must unite for the foroffice was pressed upon him by the mation of a liberal and extended adKing, and had undoubtedly been well ministration, on so broad a basis as to deserved by his faithful services, for bring its whole capacity to bear on the which he had hitherto declined any fortunes of the state during the perilous remuneration; but, being the sole act times which are evidently approaching. of a shortlived power, it was much A general wish, accordingly, was felt commented on, and gave rise to keen for the formation of a government and acrimonious discussions in both which should unite "all the talents" of houses of parliament under the suc- the nation, without regard to party disceeding administration. tinction-a natural wish at all times, and frequently indulged by the British people, but which has never led to any good result in the history of England. It never can do so, except in such a crisis of national danger as would have and as calls for the suspension of all difference in foreign or domestic policy for the warding off immediate danger, by which all are equally threatened. 3. Independently of the acknowledged weakness of the ministry after Mr Pitt ceased to sustain its fortunes, the state of public opinion rendered it extremely doubtful whether any new administration could command general sup-led the Romans to appoint a dictator, port which was not founded on a coalition of parties, and a union of all the principal statesmen of the time, to uphold the fortunes of the state. The defeat of Austerlitz, and the consequent exposure of Great Britain to the necessity of maintaining the war singlehanded against the forces of combined Europe, had made a deep impression on the public mind. Many believed some change of system to be necessary; and the opinion was sensibly gaining ground, that, having unsuccessfully made so many attempts to overthrow the power of revolutionary France by hostility, the time had now arrived when it was not only expedient, but necessary, to try whether its forces might not be more effectually disarmed by pacific relations. Complaints against the abuses of government-some real, some imaginary—during the conduct of so long and costly a war, had multiplied to a great degree. The Opposition journals had increased in number 4. Yielding, at length, though unwillingly, and with sinister presentiments, to the inclinations of the people and the necessity of his situation, the King, on the 26th January, sent a message to Lord Grenville, so long the firm supporter of Mr Pitt's foreign administration, requesting his attendance at Buckingham House, to confer with his Majesty on the formation of a government. Lord Grenville suggested Mr Fox as the person he should consult on the subject. The King, though personally averse to that statesman, instantly saw the necessity of making his private feelings give way to the public good. "I thought so, and I meant it so," replied the King: and immediately the formation of an administration was intrusted to these two illustrious men. No time was lost in sending for Mr Addington, recently | these great parties, though highly rebefore created Lord Sidmouth, who spectable from the weight of private agreed to form part of the administra- character, the adherents of Mr Addingtion. The anxious wish expressed both ton's administration, who had remained by the sovereign and the nation that in Opposition ever since they were disthe government should be formed on placed from power, were still of importhe broadest possible basis, so as to in- tance from their business talents and clude all the leading men of the coun- the intimate acquaintance they had try, led to a coalition of parties, which, with the machinery of government. although it gave great apparent stabi- Lord Sidmouth (formerly Mr Addinglity at the outset, was little calculated ton) was the leader of this portion of in the end to insure the permanence of the old Tory administration, whom exthe administration. clusion from office had led to coalesce, not in the most creditable manner, with their ancient antagonists; and, from the known pacific inclinations of their chief, no serious difference of opinion in the cabinet was anticipated, at least so far as foreign affairs were concerned. 6. The leaders of these three parties were combined in the new cabinet; but the preponderance of Mr Fox's adherents was so great as to render the ministry, to all intents and purposes, a Whig administration, which speedily appeared in the universal removal of all Tory functionaries from every office, even the most inconsiderable, under government.* Mr Fox, though entitled, from his talents and influence, to the highest appointment under the crown, contented himself with the important office of Secretary for Foreign Affairs, deeming that the situation in which most embarrassment was to be expected, and where his own principles were likely soonest to lead to important results. Lord Grenville was made First Lord of the Treasury; Mr Erskine, Lord Chancellor; Lord Howick (for 5. Three distinct and well-defined parties, independent of the partisans of Mr Pitt's cabinet, then divided the legislature and the nation. The ardent Whigs, who had adhered through all the horrors of the French Revolution to democratic principles, were represented by Mr Fox and Mr Erskine, and embraced all the zealous adherents of highly popular institutions throughout the country. Parliamentary reform, Catholic emancipation, the repeal of the test acts, the abolition of slavery, peace with France, were inscribed on their banners. Another section of the Whig party existed, who had recently been arrayed in fierce hostility against their former allies. They were composed of the old Whig families which had seceded with Mr Burke, at the commencement of the French Revolution, from the popular side, and acted with Mr Pitt till his resignation in 1800, but never coalesced with his government after his resumption of power. This party, led in parliament by Lord Grenville, Earl Spencer, and Mr Windham, embraced many powerful aristocratic families, and a large portion of private worth and ability, but their hold on the affections of the populace was not so considerable as that of their stancher brethren. In hostility to France, and fierce opposition to revolutionary principles, they yielded not to the warmest partisans of Mr Pitt; but in domestic questions they inclined to the popular side, although they might be expected to form a salutary check on the innovating ardour of the more democratic portion of the government. Less considerable from general support or parLord Ellenborough-Chief Justice, with a seat in the Cabinet. liamentary eloquence than either of-Ann. Reg. 1806, 26. * The Cabinet was composed of the following members: Lord Erskine-Lord Chancellor. nance. Earl Spencer-Secretary of State for Home Mr Fox-Foreign Affairs. Mr Windham-Secretary at War. merly Mr Grey), First Lord of the Ad-raising as large as possible a propormiralty; Mr Windham, Secretary at tion of the taxes within the year, so hapWar; Earl Spencer, Secretary of State pily acted upon since 1798 by the late for the Home Department. The ca- government, was continued and exbinet exhibited a splendid array of tended; and, in pursuance thereof, it ability, and was anxiously looked to was proposed to carry the war taxes by the country, with the undefined from fourteen to nineteen millions and hope which naturally arises upon ad- a half-an increase which was effected mitting a party whose leaders had been by raising the income-tax from six and a so long celebrated by their eloquence half to ten per cent, and by an addition and genius, for the first time, after so of 3s. a hundredweight to the duty on long an exclusion, to the administra- sugar. The loan, notwithstanding this tion of public affairs. But, amidst the great addition, was still £18,000,000, general satisfaction, there were many to provide for the interest of which, who observed with regret that all the and for a sinking-fund to redeem the members of the recent government principal, the war wine-duty was dewere excluded from office, and antici-clared permanent, producing £500,000 pated no long tenure of power to a coalition which departed thus widely from the path of its predecessors, and voluntarily rejected the aid of all who had grown versant in public affairs. By a still greater number, the admission of the Lord Chief-Justice into the cabinet was justly regarded as a most dangerous innovation, fraught with obvious peril to that calm and dispassionate administration of judicial duties, which had so long been the glory of English jurisprudence. 7. Notwithstanding the essential and total change which the ministry had undergone, and the accession of a party to power who had so long denounced the measures of their rivals as fraught with irreparable injury to the best interests of the state, no immediate change in the policy of government took place; and Europe beheld with surprise the men who had invariably characterised the war as unjust and impolitic, preparing to carry it on with a patience and foresight in no degree inferior to that of their predecessors-a striking circumstance, characteristic alike of the justice of the reasons which Mr Pitt had assigned for its continuance, and the candour of the party who had now succeeded to power. The budget of Lord Henry Petty was but a continuation of the financial system of his great predecessor, modified by the altered situation of affairs, and the necessity which had obviously arisen of making provision for a protracted maritime struggle. The system of a-year, and an additional duty laid on pig-iron, calculated to produce as much more, besides lesser duties, to the amount in all of £1,136,000.* The great addition to the income-tax was loudly complained of as a grievous burden, and a total departure from all the professions of economy so often made by ministers; but there is reason to believe that indirect taxes could not have been relied on to produce so great an increase as was required in the public revenue; and there can be no doubt * BUDGET OF GREAT BRITAIN FOR 1806. Expenditure, Extraordinary. that, in adopting the manly course of making so great a demand on present income rather than increase the debt, they acted a truly patriotic and statesmanlike part. 8. The return of Napoleon to Paris, where he arrived on the night of the 26th January, to the great disappointment of the municipality and people, who had made the most magnificent preparations for his triumphal reception, had become necessary, from the financial crisis which had there occurred, and which threatened to involve the government in the most serious embarrassments. This catastrophe, partly arising from political, partly from commercial causes, had long been approaching, and the public consternation was at its height when the Emperor re-entered the Tuileries. Matters had arrived at such a pass, that the public service could no longer be carried on, and nothing but the Emperor's unparalleled victories and speedy return could have averted a national bankruptcy. He had often, during the preceding years, declared his resolution not to issue treasury bills; but he forgot to follow the only rule by which that resource could be averted, that of keeping his expenditure within his income. As it was, he instantly applied his mind, with its wonted vigour, to the consideration of the tremendous crisis which had arisen. Without undressing or going to bed, he sent for the minister of finances at midnight, and spent the whole remainder of the night in a minute and rigid examination of that functionary, and all the persons connected with his establishment. At eleven next day, the council of finance was assembled: it sat nine hours; and when it broke up, M. Mollien was appointed minister of finances, and M. de Marbois, the former minister, dismissed. 9. This panic, which at the time excited such consternation at Paris, and which, if the issue of the campaign had been doubtful, might have been attended with the most disastrous effects, arose from very simple causes. Dur ing the whole of 1805, the Bank of France, yielding to the flood of prosperity which on all sides flowed into the empire, and urged on by the constant demand for accommodation on the part of all the contractors and others engaged in the public service, rendered necessary by the expenditure of government constantly keeping in advance of the receipts of the treasury, had been progressively enlarging its discounts. Before the Emperor set out for the army, they had risen from thirty to sixty millions, double the usual amount. In the midst of the apparent prosperity produced by that excessive increase, the sagacious mind of Napoleon perceived the seeds of future evil; and amidst all the turmoil of his military preparations at Boulogne, he repeatedly wrote to the minister of finances on the subject,* and warned him of the danger of the Bank of France trusting too far the delusive credit of individuals engaged in ex of finances "The evil originates in the bank having transgressed the law. What has the law done? It has given the privilege of coining money in the form of paper to a particular company; but what did it intend by thus created should be based on solid credit. so doing? Assuredly, that the circulation The bank appears to have adopted a most erroneous principle, which is to discount to capital, but to the number of shares of its individuals, not in proportion to their real capital stock which they possess. That, however, is no real test of solvency. How many persons may be possessed of fifty or a hunthat no one would lend them a single fardred such shares, and yet be so embarrassed thing? The paper of the bank is thus issued in many, perhaps a majority of cases, not on wealth. In one word, in discounting after real credit, but on a delusive supposition of this manner, the bank is coining false money. So clearly do I see the dangers of such a course, that, if necessary, I would stop the it. I am distressed beyond measure at the pay of my soldiers rather than persevere in necessities of my situation, which, by compelling me to live in camps, and engaging me tion from what would otherwise be the chief in distant expeditions, withdraw my attenobject of my anxiety, the first wish of my heart-a good and solid organisation of all that concerns the interest of banks, manuwisdom in these remarks, written at the camp of Boulogne, in the midst of the boundless arrangements which the march of the army to Ulm, already commenced, must have requir ed, and of which his correspondence furnishes such ample proof!—BIGNON, v. 85, 86. * His words are, in a letter to the minister factures, and commerce." What admirable |