32

SPANISH DECLARATION OF WAR. CH. XXXVI.

appeared he was merely the passive agent of his Government, his continued presence at Paris was useless; he was, therefore, desired to take his departure in forty-eight hours. The paper concluded by intimating the pleasure of the Directory that any further communication on the subject of the peace, which the British Government might desire to make, should be on the basis laid down by the Republic, and conveyed to Paris by a courier. A few days before Lord Malmesbury's arrival at Paris, the French had succeeded, through

Intrigues of

the French in Spain.

the agency of the Camarilla at Madrid, in obtaining a declaration of war by Spain against England; and while the forms of negotiation were proceeding at Paris, an envoy of the Directory was actually engaged at Vienna in endeavouring to detach the only remaining ally of this country. The pride of the Imperial Court had, however, been too deeply wounded by the campaign in Italy, and the insults to which they had been subjected by Bonaparte. The reverses which the French arms had experienced on the Rhine counterbalanced, in some degree, their success in Italy; and it was hoped that the possession of Mantua by the Austrian General might check the career of French conquest. These considerations determined the Emperor to try once more the fortune of war.

1796.

NEW PARLIAMENT.

33

CHAPTER XXXVII.

BANK RESTRICTION ACT-FRENCH INVASION OF WALES-MUTINY IN THE FLEET-CONFERENCE OF LISLE-BATTLE OF CAMPERDOWN-FINANCIAL MEASURES-PATRIOTIC FUND CHANGE IN PUBLIC OPINION.

New Parlia

THE Prorogation had been followed by a General Election, and vigorous efforts were made by the regular Opposition, in conjunction ment. with the popular party, to improve their position in the House of Commons. But though all parties were weary of the war with the exception of Windham, Lord Fitzwilliam, and a few remaining disciples of the school of Burke, there was no party, beyond the avowed Republicans, willing to conclude a peace on any terms. The landed interest, which returned the majority of the House, retained undiminished confidence in Pitt. French principles of equality found little favour among the middle ranks of the English people; always more jealous of the lower than they are envious of the upper classes. The multitude had little or no share in the representation; but, on the whole, they seldom manifested any sympathy with the demagogues, who would persuade them that their interests lay in the destruction of the aristocracy, and a political revolution. The result of the General Election, therefore, was to leave Mr. Pitt in possession of the unparalleled parliamentary power which he had hitherto maintained.*

* The King nevertheless appears to have thought it necessary to make extraordinary efforts to support the ministerial majority. In a letter to Pitt, a year following this election, he says:- 'I have some debts, of which the

VOL. IV.

D

sum borrowed for the late elections makes the most considerable part, which I am by instalments paying off.'-EARL STANHOPE'S Life of Pitt, vol. iii. append. xi.

34

FINANCIAL AFFAIRS.

CH. XXXVII.

The new Parliament assembled while the negotiations, already described, were in progress at Paris. The Opposition found it difficult to quarrel with a measure which, during every period and circumstance of the war, they had constantly commended; but they vehemently denied the necessity of taking any precaution against the invasion which the French rulers had so loudly menaced.

They did not, however, venture to divide against the Bills for the establishment of a reserve of militia, of a body of irregular cavalry, and for the addition of fifteen thousand soldiers and sailors to the regular services by levies on the parishes; but their unpatriotic and unreasonable objections were generally disapproved, and elicited even from the smooth and cautious Wilberforce the sharp remark, that though the Opposition might not go the length of wishing for an invasion, they would not be displeased at some disaster befalling the country if they could thereby promote their party objects.

Financial affairs, and the fiscal policy of the Government, became the most important New loan. topics of debate during this session. The Budget was opened in December. A sum of eighteen millions, required for the military service of the year, instead of being raised, as in former years, by contract, had been obtained by open subscription, with a facility which proved at once the undiminished credit of the Government, and the resources of the country. It was contended, indeed, that the terms on which the loan was effected were unduly favourable to the moneyed interest-an argument which seemed to be supported by the eagerness with which subscriptions were sought. But the transaction which gave rise to the most serious attack upon the ministers was the advance of one million two hundred thousand pounds to the Emperor, out of the vote of credit of the preceding year. There is no point on

1796. PITT'S RESERVE AS TO APPROPRIATION OF LOAN. 35

which the House of Commons is so constitutionally jealous as its absolute dominion over the appropriation of the supplies. A vote of credit is not unfrequently granted as a temporary and provisional expedient; but such a vote is nothing more than an anticipation of the regular supply, and, as a general rule, should be applied only to ordinary purposes, or to those which Parliament has already sanctioned. The appropriation of any portion of such a grant, as a loan or subsidy to a foreign ally, in time of war, might be within the purpose or policy of the grant; but it would be a highly exceptional act, and justifiable only where the emergency was so urgent, that the sanction of Parliament could not be previously obtained. The first instalment of this subsidy had been paid while Parliament was sitting; and the only reason which the minister gave for his reserve was, that the money market would have been disturbed by the knowledge that so large an amount of specie was going out of the country. So far, however, was Pitt from putting forward this explanation by way of excuse, that he demanded a farther vote of credit of three millions, with the view of making any advances, within that sum, which the Government might think proper, to any of their allies in arms. And, in making this demand, Pitt maintained that a vote of credit entitled the Government to apply the money so voted to whatever purposes they might deem proper. But this doctrine, to be consistent with the sacred principle of appropriation, must be limited to cases in which the exigencies of the public service may require an expenditure which cannot be ascertained at the time when the vote or supply* of credit is granted. Pitt referred to several precedents in support of his position; but all these precedents were acts of power, carried, in defiance of strong * Speaker Onslow always more properly termed it a 'supply of

credit.'-3 HATSELL'S Prec. 213 note.

36

SUSPENSION OF CASH PAYMENT AT CH. XXXVII.

opposition, by corrupt majorities, and reprobated by writers on constitutional law. The particular precedent on which the minister relied as precisely in point was one of the most questionable* of the bad catalogue which he cited. The Whigs were justly indignant, and many of his supporters were offended at the insolence with which Pitt, secure in his parliamentary following, thought fit to trample on the constitutional privileges of the Commons. The vote of censure, moved by Fox, it was not thought prudent to meet by the direct negative; an amendment approving the measure as a measure of policy, but disavowing it as a precedent, was ultimately carried; but the minority in favour of the original question was unusually large.

Drain of specie.

During the Christmas recess, an exigency of a novel and alarming character demanded the prompt and decisive interference of the Government. For some time past, an unfavourable balance of trade, combining with, or consequent upon, the loans to foreign powers, had drawn an unusual quantity of specie from this country. The Government, also, had drawn heavily upon the Bank. The country people, alarmed by the increasing rumours of invasion, took their paper to the banks, and hoarded the gold which they received in payment. Many of the provincial establishments, depending almost wholly on their paper circulation, sank under

*All things were very quiet in Parliament till the Christmas. The first attack was in the Committee of Supply, when a demand was made for nine hundred and odd thousand pounds, advanced to the Duke of Savoy, and Prince Eugene expended on my Lord Rivers's expedition, over

and

above the supplies given the last session of Parliament; they carried this so far that they moved

a censure upon the Ministry for it. It was a long and warm debate, and, upon the division, we carried it in favour of the service 211 against 105.'--Sir R. Walpole to Horace Walpole, Feb. 12, 1706.

Walpole's Correspondence; COXE's Walpole, vol. ii. p. 6. Pitt described the Ministry, in this instance, as receiving the thanks of the House!