A. D. 1797. YEAR OF GEORGE III. 37 & 38. PARLIAMENT 1 & 2. Depression of the Funds.- King's Message on the Negotiations, and Suspension of Cash Payments by the Bank. Addresses. - Measures adopted in consequence. Naval Victory of Admiral Jervis off Cape St. Vincent. Landing of French Troops in Pembrokeshire and their Capture. Reduction of the Island of St. Trinidad by the British, and Failure at Porto Rico. Alarming Mutiny in the Navy at Portsmouth, quelled by concessions. Renewed by the Fleet at the Nore, and suppressed by Force. Victory of Admiral Duncan over the Dutch Fleet. · Attempts against Cadiz, and Failure at Teneriffe. Farther Parliamentary Occurrences. —Attempts of the Austrians to relieve Mantua. - Their Defeat at Rivoli, and Surrender of Mantua. Buonaparte reduces the Pope to renounce the Coalition, and submit to hard Conditions of Peace.· Successes of the French against the Archduke Charles, in the north of Italy, and in Carinthia and Carniola.Suspension of arms with the Emperor, followed by a Peace, ·Previous actions on the Upper Rhine. Venice and its territory conquered by the French. - Genoa revolutionized. — Articles of the Treaty of Campo Formio. - Internal Affairs of France.-Machinations of the Royalists, and opposition to the Directory. -The latter supported by Buonaparte and the Army.-Arrest of Pichegru and a number of the National Representatives. Negotiations between England and France renewed at Lisle, and broken off. - Troubles in Ireland. Finance. Winter meeting of Parliament. Marriage of the Princess Royal of England to the hereditary Prince of Wirtemberg. Death of the King of Prussia. IN proportion as Great Britain, from an accessary, had become a principal in the war, difficulties and dangers had accumulated around her. At this period she saw united against her two powerful members of that confederacy with which she had at first acted; and she had to fight for her own security, instead of pursuing schemes for humiliating a rival, and dictating in its internal concerns. Those principles of civil society which had been thought so dangerous to all established governments, that their suppression was the object of a general league, had now taken such firm root in France that they might bid defiance to external force; and the energy first excited in their defence had terminated in a spirit of conquest really formidable to all its neighbours. The return of Lord Malmesbury from his unsuccessful negotiation threw so deep a gloom upon the prospects of this country, that the funds experienced a depression beyond that of any period in the American war; and the present disposition of the public rendered prevalent an opinion that the ministry had only pretended a desire for peace that they might with less opposition obtain supplies for the prosecution of the war. In order to counteract this prepossession, his Majesty, on December 26th, sent a message to parliament, the purpose of which was to declare that the rupture of the negotiation did not proceed from the want of a sincere desire on his part for the restoration of peace, but from pretensions on that of the enemy inconsistent with the permanent interests of his kingdom, and the general security of Europe. At the same time his Majesty directed all the memorials and papers which had been exchanged in the course of the transaction to be laid before both Houses. This message was taken into consideration on the 30th by each House; and corresponding addresses having been moved, debates ensued, followed by motions for amendments strongly inculpating the conduct of the ministers. They were however rejected by large majorities. Whilst the certainty of a continued war, with augmented burdens and hazards, was depressing the spirits of the nation, they received an additional shock from a suspension of payment by the Bank of England. That body, now become essential to the financial operations of government, had been called upon for such great advances of cash for the payment of foreign subsidies and other state exigences, that during the last year the directors had several times represented to the minister the impossibility of supplying all his demands. The dread of an invasion having further contributed to the want of specie by a run upon the country bankers, the governor of the bank on February 9th informed Mr. Pitt, that complying with his request of an additional advance of 1,500,000l. as a loan to Ireland, would threaten ruin to the bank, and probably bring the directors to shut up their doors. In this state of affairs, the privy-council sent an order, on the 26th, prohibiting the directors of the bank of England from issuing any cash in payment till the sense of parliament could be taken on the subject, and measures be adopted for supporting the public credit. This step being made known to parliament on the following day by a message from the King, the subject was taken into consideration on the 28th. After warm debates, in which the opposition dwelt on the violent stretch of power by the privy council in thus exonerating a trading Company from the payment of its debts, and insisted on the necessity of an inquiry into the causes of this disaster, motions. were carried in both Houses by the ministry for appointing by ballot a secret committee to examine into the affairs of the bank. In the meantime, to remedy the present obstructions in the circulating medium, a bill was passed authorizing the bank to issue notes below 51. value. The secret committee in each House brought up their report on March 2d and 3d, to the following effect: -that there was a surplus of property belonging to the bank of 3,826,8901. beyond the total of their debts, exclusive of a permanent debt from government of 11,666,8007.; that it had lately experienced a drain of cash, owing to the prevalence of alarm, which there was reason to suppose would go on progressively increasing, so that it was to be apprehended that the bank would be deprived of the means for supplying the cash necessary for the exigences of the public service and that it was therefore proper to continue the measures already taken, for such time, and under such limitations, as should seem expedient to parliament. As the debates and reasonings on the subject of the bank, and the relative value of cash and bank notes, from this period down to the present time, have been more numerous, abstruse, and contradictory, than upon almost any other domestic topic, nothing further will be here attempted than a recital of the different measures actually put in practice for remedying that failure. in the circulating medium, which in the beginning bore so formidable an aspect. Previously to the inquiry into the affairs of the bank by parliament, its solvency was so well established in the opinion of the commercial world, that a meeting was held at the Mansion-house on February 27th of all the bankers and the most opulent merchants of London, in which a resolution was unanimously entered into of taking bank of England notes in payment of any sum, and of using their utmost endeavours to make all their payments in the same. A committee of the whole House of Commons having on March 9th taken into consideration the report delivered to it respecting the bank, Mr. Pitt, moved for a bill to continue and confirm for a limited time the restriction of the issue of specie by the bank of England. During the passage of this bill through the House, various clauses were proposed by the minister, of which some of the most important were, that the army and navy should be paid in specie; that bank-notes should be received in payment by the collectors in every branch of the revenue; that the offer of a bank-note in payment of a demand should do away the effect of an arrest in the first instance; and that the bank should be permitted to issue a sum in cash not exceeding 100,000l., for the accommodation of private bankers and traders in the metropolis. The operation of the bill was limited to the 24th of June. It passed the House with little difficulty, and was carried through the House of Lords without alteration. At this time one of the directors did not hesitate to assert in the House of Commons, that there was every reason to hope that the bank would soon be enabled to resume its payments in specie. Ꭰ Ꮞ The early part of this year was signalized by a splendid exploit of the British navy. The acquisition by France of two allies, both capable of powerful exertions by sea, inspired her with hopes of overthrowing that maritime superiority of England which was so essential to her security as well as to her prosperity; and the ascendency which the French had acquired in the councils of Holland and Spain was employed in urging them to use all their efforts in augmenting their navies. In Spain so much diligence had been exerted in this department, that a large fleet was prepared for the purpose of making a junction with the French squadron at Brest. Its force consisted of 27 sail of the line, six of them mounting 112 guns, and one, 136 guns. This formidable armament, however, was inadequately manned, a great proportion of the crews being landmen; and a mixture of expert artillerists could not supply the deficiency of sailors. The English squadron destined to intercept this gigantic fleet was composed of no more than 15 ships of the line and some frigates, but it was excellently manned, and was commanded by Admiral Jervis, an officer of first-rate abilities, seconded by some of the most distinguished captains in the British navy. On February 14th the English Admiral, cruising off Cape St. Vincent on the coast of Portugal, descried the Spanish fleet under a press of sail. Deciding on the instant what part to take, he bore down in a line before the enemy had time to form a regular order of battle, and separating one-third of the Spanish line from the rest, he reduced its force nearer to an equality. An attempt by the Spanish Admiral to rejoin his separated ships was prevented by the interposition of Commodore Nelson, who at one time had to encounter the Admiral and two other first rates. The engagement concluded with the capture of four Spanish ships, one of them of 112 guns, and with the return of their fleet to Cadiz, where they were blocked up by the English. Admiral Jervis was rewarded for his victory by the title of Earl St. Vincent; and Nelson, who now first began to be known to fame, received the honour of knighthood. |