The History of England, from the Accession of James II — Volume 4

Emboldened by success, the Whig leaders ventured to proceed a step further. They brought into the Lower House a bill for the securing of the King's person and government. By this bill it was provided that whoever, while the war lasted, should come from France into England without the royal license should incur the penalties of treason, that the suspension of the Habeas Corpus Act should continue to the end of the year 1696, and that all functionaries appointed by William should retain their offices, notwithstanding his death, till his successor should be pleased to dismiss them. The form of Association which the House of Commons had adopted was solemnly ratified; and it was provided that no person should sit in that House or should hold any office, civil or military, without signing. The Lords were indulged in the use of their own form; and nothing was said about the clergy.

The Tories, headed by Finch and Seymour, complained bitterly of this new test, and ventured once to divide, but were defeated. Finch seems to have been heard patiently; but, notwithstanding all Seymour's eloquence, the contemptuous manner in which he spoke of the Association raised a storm against which he could not stand. Loud cries of "the Tower, the Tower," were heard. Haughty and imperious as he was, he was forced to explain away his words, and could scarcely, by apologizing in a manner to which he was little accustomed, save himself from the humiliation of being called to the bar and reprimanded on his knees. The bill went up to the Lords, and passed with great speed in spite of the opposition of Rochester and Nottingham. 688

The nature and extent of the change which the discovery of the Assassination Plot had produced in the temper of the House of Commons and of the nation is strikingly illustrated by the history of a bill entitled a Bill for the further Regulation of Elections of Members of Parliament. The moneyed interest was almost entirely Whig, and was therefore an object of dislike to the Tories. The rapidly growing power of that interest was generally regarded with jealousy by landowners whether they were Whigs or Tories. It was something new and monstrous to see a trader from Lombard Street, who had no tie to the soil of our island, and whose wealth was entirely personal and movable, post down to Devonshire or Sussex with a portmanteau full of guineas, offer himself as candidate for a borough in opposition to a neighbouring gentleman whose ancestors had been regularly returned ever since the Wars of the Roses, and come in at the head of the poll. Yet even this was not the worst. More than one seat in Parliament, it was said, had been bought and sold over a dish of coffee at Garraway's. The purchaser had not been required even to go through the form of showing himself to the electors. Without leaving his counting house in Cheapside, he had been chosen to represent a place which he had never seen. Such things were intolerable. No man, it was said, ought to sit in the English legislature who was not master of some hundreds of acres of English ground. 689 A bill was accordingly brought in which provided that every member of the House of Commons must have a certain estate in land. For a knight of a shire the qualification was fixed at five hundred a year; for a burgess at two hundred a year. Early in February this bill was read a second time and referred to a Select Committee. A motion was made that the Committee should be instructed to add a clause enacting that all elections should be by ballot. Whether this motion proceeded from a Whig or a Tory, by what arguments it was supported and on what grounds it was opposed, we have now no means of discovering. We know only that it was rejected without a division.

Before the bill came back from the Committee, some of the most respectable constituent bodies in the kingdom had raised their voices against the new restriction to which it was proposed to subject them. There had in general been little sympathy between the commercial towns and the Universities. For the commercial towns were the chief seats of Whiggism and Non conformity; and the Universities were zealous for the Crown and the Church. Now, however, Oxford and Cambridge made common cause with London and Bristol. It was hard, said the Academics, that a grave and learned man, sent by a large body of grave and learned men to the Great Council of the nation, should be thought less fit to sit in that Council than a boozing clown who had scarcely literature enough to entitle him to the benefit of clergy. It was hard, said the traders, that a merchant prince, who had been the first magistrate of the first city in the world, whose name on the back of a bill commanded entire confidence at Smyrna and at Genoa, at Hamburg and at Amsterdam, who had at sea ships every one of which was worth a manor, and who had repeatedly, when the liberty and religion of the kingdom were in peril, advanced to the government, at an hour's notice, five or ten thousand pounds, should be supposed to have a less stake in the prosperity of the commonwealth than a squire who sold his own bullocks and hops over a pot of ale at the nearest market town. On the report, it was moved that the Universities should be excepted; but the motion was lost by a hundred and fifty-one votes to a hundred and forty-three. On the third reading it was moved that the City of London should be excepted; but it was not thought advisable to divide. The final question that the bill do pass, was carried by a hundred and seventy-three votes to a hundred and fifty on the day which preceded the discovery of the Assassination Plot. The Lords agreed to the bill without any amendment.

William had to consider whether he would give or withhold his assent. The commercial towns of the kingdom, and among them the City of London, which had always stood firmly by him, and which had extricated him many times from great embarrassments, implored his protection. It was represented to him that the Commons were far indeed from being unanimous on this subject; that, in the last stage, the majority had been only twenty-three in a full House; that the motion to except the Universities had been lost by a majority of only eight. On full consideration he resolved not to pass the bill. Nobody, he said, could accuse him of acting selfishly on this occasion; his prerogative was not concerned in the matter; and he could have no objection to the proposed law except that it would be mischievous to his people.

On the tenth of April 1696, therefore, the Clerk of the Parliament was commanded to inform the Houses that the King would consider of the Bill for the further Regulation of Elections. Some violent Tories in the House of Commons flattered themselves that they might be able to carry a resolution reflecting on the King. They moved that whoever had advised His Majesty to refuse his assent to their bill was an enemy to him and to the nation. Never was a greater blunder committed. The temper of the House was very different from what it had been on the day when the address against Portland's grant had been voted by acclamation. The detection of a murderous conspiracy, the apprehension of a French invasion, had changed every thing. The King was popular. Every day ten or twelve bales of parchment covered with the signatures of associators were laid at his feet. Nothing could be more imprudent than to propose, at such a time, a thinly disguised vote of censure on him. The moderate Tories accordingly separated themselves from their angry and unreasonable brethren. The motion was rejected by two hundred and nineteen votes to seventy; and the House ordered the question and the numbers on both sides to be published, in order that the world might know how completely the attempt to produce a quarrel between the King and the Parliament had failed. 690

The country gentlemen might perhaps have been more inclined to resent the loss of their bill, had they not been put into high goodhumour by another bill which they considered as even more important. The project of a Land Bank had been revived; not in the form in which it had, two years before, been brought under the consideration of the House of Commons, but in a form much less shocking to common sense and less open to ridicule. Chamberlayne indeed protested loudly against all modifications of his plan, and proclaimed, with undiminished confidence, that he would make all his countrymen rich if they would only let him. He was not, he said, the first great discoverer whom princes and statesmen had regarded as a dreamer. Henry the Seventh had, in an evil hour, refused to listen to Christopher Columbus; the consequence had been that England had lost the mines of Mexico and Peru; yet what were the mines of Mexico and Peru to the riches of a nation blessed with an unlimited paper currency? But the united force of reason and ridicule had reduced the once numerous sect which followed Chamberlayne to a small and select company of incorrigible fools. Few even of the squires now believed in his two great doctrines; the doctrine that the State can, by merely calling a bundle of old rags ten millions sterling, add ten millions sterling to the riches of the nation; and the doctrine that a lease of land for a term of years may be worth many times the fee simple. But it was still the general opinion of the country gentlemen that a bank, of which it should be the special business to advance money on the security of land, might be a great blessing to the nation. Harley and the Speaker Foley now proposed that such a bank should be established by Act of Parliament, and promised that, if their plan was adopted, the King should be amply supplied with money for the next campaign.

The Whig leaders, and especially Montague, saw that the scheme was a delusion, that it must speedily fail, and that, before it failed, it might not improbably ruin their own favourite institution, the Bank of England. But on this point they had against them, not only the whole Tory party, but also their master and many of their followers. The necessities of the State were pressing. The offers of the projectors were tempting. The Bank of England had, in return for its charter, advanced to the State only one million at eight per cent. The Land Bank would advance more than two millions and a half at seven per cent. William, whose chief object was to procure money for the service of the year, was little inclined to find fault with any source from which two millions and a half could be obtained. Sunderland, who generally exerted his influence in favour of the Whig leaders, failed them on this occasion. The Whig country gentlemen were delighted by the prospect of being able to repair their stables, replenish their cellars, and give portions to their daughters. It was impossible to contend against such a combination of force. A bill was passed which authorised the government to borrow two million five hundred and sixty-four thousand pounds at seven per cent. A fund, arising chiefly from a new tax on salt, was set apart for the payment of the interest. If, before the first of August, the subscription for one half of this loan should have been filled, and if one half of the sum subscribed should have been paid into the Exchequer, the subscribers were to become a corporate body, under the name of the National Land Bank. As this bank was expressly intended to accommodate country gentlemen, it was strictly interdicted from lending money on any private security other than a mortgage of land, and was bound to lend on mortgage at least half a million annually. The interest on this half million was not to exceed three and a half per cent., if the payments were quarterly, or four per cent., if the payments were half yearly. At that time the market rate of interest on the best mortgages was full six per cent. The shrewd observers at the Dutch Embassy therefore thought that capitalists would eschew all connection with what must necessarily be a losing concern, and that the subscription would never be half filled up; and it seems strange that any sane person should have thought otherwise. 691

It was vain however to reason against the general infatuation. The Tories exultingly predicted that the Bank of Robert Harley would completely eclipse the Bank of Charles Montague. The bill passed both Houses. On the twenty-seventh of April it received the royal assent; and the Parliament was immediately afterwards prorogued.

CHAPTER XXII

Military Operations in the Netherlands—Commercial Crisis in England—Financial Crisis—Efforts to restore the Currency—Distress of the People; their Temper and Conduct—Negotiations with France; the Duke of Savoy deserts the Coalition—Search for Jacobite Conspirators in England; Sir John Fenwick—Capture of Fenwick—Fenwick's Confession—Return of William to England—Meeting of Parliament; State of the Country; Speech of William at the Commencement of the Session—Resolutions of the House of Commons—Return of Prosperity—Effect of the Proceedings of the House of Commons on Foreign Governments—Restoration of the Finances—Effects of Fenwick's Confession—Resignation of Godolphin—Feeling of the Whigs about Fenwick—William examines Fenwick—Disappearance of Goodman—Parliamentary Proceedings touching Fenwick's Confession—Bill for attainting Fenwick—Debates of the Commons on the Bill of Attainder—The Bill of Attainder carried up to the Lords—Artifices of Monmouth—Debates of the Lords on the Bill of Attainder—Proceedings against Monmouth—Position and Feelings of Shrewsbury—The Bill of Attainder passed; Attempts to save Fenwick—Fenwick's Execution; Bill for the Regulating of Elections—Bill for the Regulation of the Press—Bill abolishing the Privileges of Whitefriars and the Savoy—Close of the Session; Promotions and Appointments—State of Ireland—State of Scotland—A Session of Parliament at Edinburgh; Act for the Settling of Schools—Case of Thomas Aikenhead—Military Operations in the Netherlands—Terms of Peace offered by France—Conduct of Spain; Conduct of the Emperor—Congress of Ryswick—William opens a distinct Negotiation—Meetings of Portland and Boufflers—Terms of Peace between France and England settled—Difficulties caused by Spain and the Emperor—Attempts of James to prevent a general Pacification—The Treaty of Ryswick signed; Anxiety in England—News of the Peace arrives in England—Dismay of the Jacobites—General Rejoicing—The King's Entry into London—The Thanksgiving Day

ON the seventh of May 1696, William landed in Holland. 692 Thence he proceeded to Flanders, and took the command of the allied forces, which were collected in the neighbourhood of Ghent. Villeroy and Boufflers were already in the field. All Europe waited impatiently for great news from the Netherlands, but waited in vain. No aggressive movement was made. The object of the generals on both sides was to keep their troops from dying of hunger; and it was an object by no means easily attained. The treasuries both of France and England were empty. Lewis had, during the winter, created with great difficulty and expense a gigantic magazine at Givet on the frontier of his kingdom. The buildings were commodious and of vast extent. The quantity of provender laid up in them for horses was immense. The number of rations for men was commonly estimated at from three to four millions. But early in the spring Athlone and Cohorn had, by a bold and dexterous move, surprised Givet, and had utterly destroyed both storehouses and stores. 693 France, already fainting from exhaustion, was in no condition to repair such a loss. Sieges such as those of Mons and Namur were operations too costly for her means. The business of her army now was, not to conquer, but to subsist.

The army of William was reduced to straits not less painful. The material wealth of England, indeed, had not been very seriously impaired by the drain which the war had caused; but she was suffering severely from the defective state of that instrument by which her material wealth was distributed.

Saturday, the second of May, had been fixed by Parliament as the last day on which the clipped crowns, halfcrowns and shillings were to be received by tale in payment of taxes. 694 The Exchequer was besieged from dawn till midnight by an immense multitude. It was necessary to call in the guards for the purpose of keeping order. On the following Monday began a cruel agony of a few months, which was destined to be succeeded by many years of almost unbroken prosperity. 695

Most of the old silver had vanished. The new silver had scarcely made its appearance. About four millions sterling, in ingots and hammered coin, were lying in the vaults of the Exchequer; and the milled money as yet came forth very slowly from the Mint. 696 Alarmists predicted that the wealthiest and most enlightened kingdom in Europe would be reduced to the state of those barbarous societies in which a mat is bought with a hatchet, and a pair of mocassins with a piece of venison.

There were, indeed, some hammered pieces which had escaped mutilation; and sixpences not clipped within the innermost ring were still current. This old money and the new money together made up a scanty stock of silver, which, with the help of gold, was to carry the nation through the summer. 697 The manufacturers generally contrived, though with extreme difficulty, to pay their workmen in coin. 698 The upper classes seem to have lived to a great extent on credit. Even an opulent man seldom had the means of discharging the weekly bills of his baker and butcher. 699 A promissory note, however, subscribed by such a man, was readily taken in the district where his means and character were well known. The notes of the wealthy moneychangers of Lombard Street circulated widely. 700 The paper of the Bank of England did much service, and would have done more, but for the unhappy error into which the Parliament had recently been led by Harley and Foley. The confidence which the public had felt in that powerful and opulent Company had been shaken by the Act which established the Land Bank. It might well be doubted whether there would be room for the two rival institutions; and of the two, the younger seemed to be the favourite of the government and of the legislature. The stock of the Bank of England had gone rapidly down from a hundred and ten to eighty-three. Meanwhile the goldsmiths, who had from the first been hostile to that great corporation, were plotting against it. They collected its paper from every quarter; and on the fourth of May, when the Exchequer had just swallowed up most of the old money, and when scarcely any of the new money had been issued, they flocked to Grocers' Hall, and insisted on immediate payment. A single goldsmith demanded thirty thousand pounds. The Directors, in this extremity, acted wisely and firmly. They refused to cash the notes which had been thus maliciously presented, and left the holders to seek a remedy in Westminster Hall. Other creditors, who came in good faith to ask for their due, were paid. The conspirators affected to triumph over the powerful body, which they hated and dreaded. The bank which had recently begun to exist under such splendid auspices, which had seemed destined to make a revolution in commerce and in finance, which had been the boast of London and the envy of Amsterdam, was already insolvent, ruined, dishonoured. Wretched pasquinades were published, the Trial of the Land Bank for murdering the Bank of England, the last Will and Testament of the Bank of England, the Epitaph of the Bank of England, the Inquest on the Bank of England. But, in spite of all this clamour and all this wit, the correspondents of the States General reported, that the Bank of England had not really suffered in the public esteem, and that the conduct of the goldsmiths was generally condemned. 701

The Directors soon found it impossible to procure silver enough to meet every claim which was made on them in good faith. They then bethought them of a new expedient. They made a call of twenty per cent. on the proprietors, and thus raised a sum which enabled them to give every applicant fifteen per cent. in milled money on what was due to him. They returned him his note, after making a minute upon it that part had been paid. 702 A few notes thus marked are still preserved among the archives of the Bank, as memorials of that terrible year. The paper of the Corporation continued to circulate, but the value fluctuated violently from day to day, and indeed from hour to hour; for the public mind was in so excitable a state that the most absurd lie which a stockjobber could invent sufficed to send the price up or down. At one time the discount was only six per cent., at another time twenty-four per cent. A tenpound note, which had been taken in the morning as worth more than nine pounds, was often worth less than eight pounds before night. 703

Another, and, at that conjuncture, a more effectual substitute for a metallic currency, owed its existence to the ingenuity of Charles Montague. He had succeeded in engrafting on Harley's Land Bank Bill a clause which empowered the government to issue negotiable paper bearing interest at the rate of threepence a day on a hundred pounds. In the midst of the general distress and confusion appeared the first Exchequer Bills, drawn for various amounts from a hundred pounds down to five pounds. These instruments were rapidly distributed over the kingdom by the post, and were every where welcome. The Jacobites talked violently against them in every coffeehouse, and wrote much detestable verse against them, but to little purpose. The success of the plan was such, that the ministers at one time resolved to issue twentyshilling bills, and even fifteenshilling bills, for the payment of the troops. But it does not appear that this resolution was carried into effect. 704

It is difficult to imagine how, without the Exchequer Bills, the government of the country could have been carried on during that year. Every source of revenue had been affected by the state of the currency; and one source, on which the Parliament had confidently reckoned for the means of defraying more than half the charge of the war, had yielded not a single farthing.

The sum expected from the Land Bank was near two million six hundred thousand pounds. Of this sum one half was to be subscribed, and one quarter paid up by the first of August. The King, just before his departure, had signed a warrant appointing certain commissioners, among whom Harley and Foley were the most eminent, to receive the names of the contributors. 705 A great meeting of persons interested in the scheme was held in the Hall of the Middle Temple. One office was opened at Exeter Change, another at Mercers' Hall. Forty agents went down into the country, and announced to the landed gentry of every shire the approach of the golden age of high rents and low interest. The Council of Regency, in order to set an example to the nation, put down the King's name for five thousand pounds; and the newspapers assured the world that the subscription would speedily be filled. 706 But when three weeks had passed away, it was found that only fifteen hundred pounds had been added to the five thousand contributed by the King. Many wondered at this; yet there was little cause for wonder. The sum which the friends of the project had undertaken to raise was a sum which only the enemies of the project could furnish. The country gentlemen wished well to Harley's scheme; but they wished well to it because they wanted to borrow money on easy terms; and, wanting to borrow money, they of course were not able to lend it. The moneyed class alone could supply what was necessary to the existence of the Land Bank; and the Land Bank was avowedly intended to diminish the profits, to destroy the political influence and to lower the social position of the moneyed class. As the usurers did not choose to take on themselves the expense of putting down usury, the whole plan failed in a manner which, if the aspect of public affairs had been less alarming, would have been exquisitely ludicrous. The day drew near. The neatly ruled pages of the subscription book at Mercers' Hall were still blank. The Commissioners stood aghast. In their distress they applied to the government for indulgence. Many great capitalists, they said, were desirous to subscribe, but stood aloof because the terms were too hard. There ought to be some relaxation. Would the Council of Regency consent to an abatement of three hundred thousand pounds? The finances were in such a state, and the letters in which the King represented his wants were so urgent, that the Council of Regency hesitated. The Commissioners were asked whether they would engage to raise the whole sum, with this abatement. Their answer was unsatisfactory. They did not venture to say that they could command more than eight hundred thousand pounds. The negotiation was, therefore, broken off. The first of August came; and the whole amount contributed by the whole nation to the magnificent undertaking from which so much had been expected was two thousand one hundred pounds. 707