Chapter II: The Reign of George I (2)

Thus entered the year 1717. It had been intended to open Parliament immediately on the king's return, but the discovery of a new and singular phase of the Jacobite conspiracy compelled its postponement. We have seen that the trafficking of George with Denmark for the bishoprics of Bremen and Verden, reft in the king of Sweden's absence from his possession, had incensed that monarch, and made him vow that he would support the Pretender and march into Scotland with twelve thousand men. Such a menace on the part of a general like Charles XII. was not likely to pass unnoticed by the Jacobites. The Duke of Berwick had taken up the idea very eagerly. He had held several conferences upon it with Baron Spaar, the Swedish Minister at Paris, and he had sent a trusty minister to Charles at Stralsund, with the proposal that a body of seven or eight thousand Swedes, then encamped near Gothenburg, should embark at that port, whence, with a favourable wind, they could land in Scotland in eight-and-forty hours. The Pretender agreed to furnish one hundred and fifty thousand livres for their expenses. At that time, however, Charles was closely besieged by the Danes, Prussians, and their new ally, George of Hanover, purchased by the bribe of Bremen and Verden. Charles was compelled by this coalition to retire from Stralsund, but only in a mood of deeper indignation against the King of England, and therefore more favourable to his enemies.

The invasion of Scotland was again brought under his notice, and strongly recommended by his chief confidant and minister, Baron Gortz. Charles now listened with all his native spirit of resentment, and Gortz immediately set out on a tour of instigation and arrangement of the invasion. He hastened to Holland, where he corresponded with Count Gyllenborg, the Swedish Ambassador at London, and Baron Spaar, the Swedish Minister at Paris. He put himself also into communication with the Pretender and the Duke of Ormonde. The scheme of Gortz was able and comprehensive. A peace was to be established between Charles and his great enemy and rival, Peter of Russia. They both hated George of Hanover and England, and by this union might inflict the severest injuries on him. Next a conspiracy was to be excited against the Regent of France, so as to prevent him aiding England according to the recent Treaty, and all being thus prepared, Charles XII. was himself to conduct the army of twelve thousand veterans destined to invade Scotland, and, if supported by the Jacobites, England.

The Jacobites were in ecstasies at this new phase of their old enterprise. By Charles's adhesion, their scheme was stripped of all those prejudices which had insured its ruin with the English. It had no longer the unpopular aspect of a French invasion; it was no longer headed by a Popish but a Protestant leader; it was no longer consigned to an untried or doubtful general, but to one of the most victorious monarchs living, who came as a Protestant to call on a Protestant nation to receive their rightful king. Money was not wanting. Spain remitted to Baron Spaar a million of livres for the expedition, and the Court of the Pretender offered sixty thousand pounds.

But unfortunately for the Pretender, at the moment that the Swedish hero should prepare his armament for the earliest spring, the conspiracy exploded. Whilst the leaders of it had been flattering themselves that it was conducted with the profoundest secrecy, the English Ministry were in possession of its clue. As early as October they had found reason to induce them to intercept the correspondence of Gyllenborg, and had come at once on the letters of Gortz. The matter was kept close, and as nothing was apprehended in winter, Ministers used the time to improve their knowledge of the scheme from the inspected letters passing between Gortz and Gyllenborg. On the king's return it was resolved to act, and accordingly Stanhope laid the information regarding this formidable conspiracy before the Council, and proposed that the Swedish Minister, who had clearly, by conspiring against the Government to which he was accredited, violated the law of nations, and deprived himself of its protection, should be arrested. The Cabinet at once assented to the proposal, and General Wade, a man of firm and resolute military habits, was ordered to make the arrest of the Ambassador. The general found Count Gyllenborg busy making up his despatches, which, after announcing laconically his errand, Wade took possession of, and then demanded the contents of his escritoire. The Dutch Government acted in the same manner to Gortz, and the evidence thus obtained was most conclusive.

When Parliament met on the 20th of February, this conspiracy was laid before it and excited great indignation. The two Houses voted cordial addresses to his Majesty, and for a while there was an air of harmony. But the fires of discontent were smouldering beneath the surface, and, on a motion being made in April, in consequence of a royal message, to grant the king an extraordinary Supply in order to enable his Majesty to contract alliances with foreign powers, that he might be prepared to meet any attempts at invasion which the Swedes might, after all, be disposed to make, the heat broke forth. The Supply moved for was fixed at two hundred and fifty thousand pounds. It was expected that Walpole, having had his name suspiciously mentioned in Gyllenborg's correspondence, would take this opportunity to wipe off all doubt by his zeal and co-operation. On the contrary, he never appeared so lukewarm. Both he and his brother Horace, indeed, spoke in favour of the Supply, but coldly; and Townshend and all their common friends openly joined the Tories and Jacobites in voting against it; so that it was carried only by a majority of four. This could not pass; and the same evening Stanhope, by the king's order, wrote to Townshend, acknowledging his past services, but informing him that he was no longer Lord-Lieutenant of Ireland.

Walpole did not wait for a like humiliation. The next morning he waited on the king, and tendered his resignation of his places as First Lord of the Treasury and Chancellor of the Exchequer. The king, if he could be judged by his conduct, had formed no resolution of parting with Walpole. He handed again to him the seals, cordially entreating him to take them back, speaking to him in the kindest manner, and appearing as though he would take no refusal. But Walpole remained steady to his purpose, and, accordingly, his friends Methuen, Pulteney, Lord Orford, and the Duke of Devonshire, resigned a few days afterwards. Stanhope was then appointed First Lord of the Treasury and Chancellor of the Exchequer; Sunderland and Joseph Addison were made Secretaries of State; Craggs, Secretary at War; Lord Berkeley, First Lord of the Admiralty; the Duke of Newcastle, Lord Chamberlain; the Duke of Bolton, Lord-Lieutenant of Ireland; Lord Cowper and the Duke of Kingston retaining their old places.

The retired Ministers showed for the most part a very hostile attitude, and Pulteney denounced the new Ministry as a "German Ministry." Walpole, for a little time, affected a liberal conduct, declaring, when the Supply of two hundred and fifty thousand pounds was voted, that, as he had before spoken in its favour, he should now vote in its favour, and would show by his proceedings that he had never intended to make the king uneasy, or to embarrass his affairs. But it was not in Walpole's nature to maintain this air of temperance long. He was as violent in opposition as he was able and zealous in office. Whether in or out of office, he was, in fact, equally unscrupulous. He very soon joined himself to Shippen, Wyndham, Bromley, and the other violent opponents of the reigning family; so that Shippen himself ere long said exultingly that he was glad to see that Walpole was no longer afraid of being styled a Jacobite.

Before Walpole thus threw off the mask of moderation--indeed, on the very day of his resignation--he introduced a well-matured scheme for the reduction of the National Debt, which was, in fact, the earliest germ of the National Sinking Fund. Though the ordinary rate of interest had been reduced, by the statute of the 12th of Queen Anne, to five per cent., the interest on the funded debt remained upwards of seven. The Long and Short Annuities were unredeemable, and could not be touched without the consent of the proprietors; but Walpole proposed to borrow six hundred thousand pounds at only four per cent., and to apply all savings to the discharge of the debts contracted before December, 1716. He proposed, also, to make some arrangement with the Bank and the South Sea Company, by which the Bank should lend two millions and a half, and the Company two millions, at five per cent., to pay off such holders of redeemable debts as should refuse to accept an equal reduction.

The new Administration took measures to render themselves popular. They advised the king to go down to the House on the 6th of May, and propose a reduction of the army to the extent of ten thousand men, as well as an Act of Grace to include many persons concerned in the late rebellion. Walpole and his friends, on the contrary, did all in their power to embarrass the Government. Lord Oxford was not included in the Act of Indemnity, and it was resolved now by his friends to have his trial brought on. Before this was effected, however, a violent attack was made on Lord Cadogan. As Ambassador at the Hague, he had superintended the embarkation of the Dutch troops sent to aid in putting down the rebellion. He was now charged with having committed gross peculations on that occasion. Shippen led the way in this attack, but Walpole and Pulteney pursued their former colleague with the greatest rancour, and Walpole declaimed against him so furiously that, after a speech of nearly two hours in length, he was compelled to stop by a sudden bleeding at the nose. Stanhope, Craggs, Lechmere, and others defended him; but such was the combination of enemies against him, or rather, against the Ministers, that the motion was only negatived by a majority of ten.

Lord Oxford's case was brought at length to a termination also in his favour. His friends having complained of the hardship of keeping him without a hearing for nearly two years, the 24th of June was appointed for the trial to take place in Westminster Hall. The Commons again met in committee to complete the evidence against him; but it was now found that Walpole, who was the chairman, and who had formerly pursued the inquiry with all eagerness, had suddenly cooled, and seldom came near the Committee; and they therefore appointed a new one. In fact, he and Townshend, out of opposition, were doing that secretly which they could not do openly without loss of character--they were exerting themselves in favour of their old antagonist, and they soon hit on a scheme for bringing him off without any trial at all. The Lords were persuaded to listen to any evidence in support of the charge of misdemeanour before they heard that on the grave charge of treason, and the result foreseen by the Opposition took place when the resolution was reported to the Commons. They immediately determined that it was an infringement of their privileges, and declined compliance with it. This was what Walpole and the then partisans, secret or open, of Lord Oxford, had foreseen. The Commons refusing to attend in Westminster Hall on the day fixed, the Lords returned to their own House, and passed a resolution declaring the Earl of Oxford acquitted, an announcement received by the people with acclamation. The Commons then demanded that Oxford should be excepted from the Act of Grace; but, notwithstanding, he was released from the Tower, and the Commons never renewed the impeachment.

It might have been supposed that Europe, or at least the southern portion of it, was likely to enjoy a considerable term of peace. France, under a minor and a Regent, appeared to require rest to recruit its population and finances more than any part of the Continent. The King of Spain was too imbecile to have any martial ambition; and though his wife was anxious to secure the succession to the French throne in case of the death of the infant Louis XV., yet Alberoni, the Prime Minister, was desirous to remain at peace. This able Churchman, who had risen from the lowest position, being the son of a working gardener, and had made his way to his present eminence partly by his abilities and partly by his readiness to forget the gravity of the clerical character for the pleasure of his patrons, was now zealously exerting himself to restore the condition of Spain. He was thus brought into collision with Austria and France, and eventually with this country to which at first he was well disposed. England was under engagement both to France and the Empire, which must, on the first rupture with either of those Powers and Spain, precipitate her into war. The treaty with the Emperor--as it guaranteed the retention of the Italian provinces, which Spain beheld with unappeasable jealousy, in Austrian hands--was the first thing to change the policy of Alberoni towards Britain. This change was still further accelerated by the news of the Triple Alliance, which equally guaranteed the _status quo_ of France. The Spanish Minister displayed his anger by suspending the Treaty of Commerce, and by conniving at the petty vexations practised by the Spaniards on the English merchants in Spain, and by decidedly rejecting a proposal of the King of England to bring about an accommodation between the Emperor and the Court of Spain.

In this uneasy state of things Austria very unnecessarily put the match to the political train, and threw the whole of the south of Europe again into war. Don Joseph Molina, the Spanish Ambassador at Rome, being appointed Inquisitor-General at Spain, commenced his journey homewards, furnished with a passport from the Pope, and an assurance of safety from the Imperial Minister. Yet, notwithstanding this, he was perfidiously arrested by the Austrian authorities and secured in the citadel of Milan. The gross insult to Spain, and equally gross breach of faith, so exasperated the King and Queen of Spain that they would listen to nothing but war. The earnest expostulations of Alberoni, delivered in the form of a powerful memorial, were rejected, and he was compelled to abandon the cherished hopes of peaceful improvement and make the most active preparations for war.

Alberoni despatched Don Joseph Patiño to Barcelona to hasten the military preparations. Twelve ships of war and eight thousand six hundred men were speedily assembled there, and an instant alarm was excited throughout Europe as to the destination of this not very formidable force. The Emperor, whose treacherous conduct justly rendered him suspicious, imagined the blow destined for his Italian territories; the English anticipated a fresh movement in favour of the Pretender; but Alberoni, an astute Italian, who was on the point of receiving the cardinal's hat from the Pope led Charles (VI.) to believe that the armament was directed against the Infidels in the Levant. The Pope, therefore, hastened the favour of the Roman purple, and then Alberoni no longer concealed the real destination of his troops. The Marquis de Lede was ordered to set out with the squadron for the Italian shores; but when Naples was trembling in apprehension of a visit, the fleet drew up, on the 20th of August, in the bay of Cagliari, the capital of the island of Sardinia. That a force which might have taken Naples should content itself with an attack on the barren, rocky, and swampy Sardinia, surprised many; but Alberoni knew very well that, though he could take, he had not yet an army sufficient to hold Naples, and he was satisfied to strike a blow which should alarm Europe, whilst it gratified the impatience of the Spanish monarch for revenge. There was, moreover, an ulterior object. It had lately been proposed by England and Holland to the Emperor, in order to induce him to come into the Triple Alliance and convert it into a quadruple one, to obtain an exchange of this island for Sicily with the Duke of Savoy. It was, therefore, an object to prevent this arrangement by first seizing Sardinia. The Spanish general summoned the governor of Cagliari to surrender; but he stood out, and the Spaniards had to wait for the complete arrival of their ships before they could land and invest the place. The governor was ere long compelled to capitulate; but the Aragonese and the Catalans, who had followed the Austrians from the embittered contest in their own country, defended the island with furious tenacity, and it was not till November, and after severe losses through fighting and malaria, that the Spaniards made themselves masters of the island. The Powers of the Triple Alliance then intervened with the proposal that Austria should renounce all claim on the Spanish monarchy, and Spain all claim on Italy. Enraged at this proposal, Alberoni embarked on extensive military preparations, and put in practice the most extensive diplomatic schemes to paralyse his enemies abroad. He won the goodwill of Victor Amadeus by holding out the promise of the Milanese in exchange for Sicily; he encouraged the Turks to continue the war against the Emperor, and entered into negotiations with Ragotsky to renew the insurrection in Hungary; he adopted the views of Gortz for uniting the Czar and Charles of Sweden in peace, so that he might be able to turn their united power against the Emperor, and still more against the Electorate of Hanover, thus diverting the attention and the energies of George of England. Still further to occupy England, which he dreaded more than all the rest, he opened a direct correspondence with the Pretender, who was now driven across the Alps by the Triple Alliance, and promised him aid in a new expedition against Britain under the direction of the Duke of Ormonde, or of James himself. In France the same skilful pressure was directed against all the tender places of the body politic. He endeavoured to rouse anew the insurrection of the Cevennes and the discontents of Brittany. The Jesuits, the Protestants, the Duke and Duchess of Maine, were all called into action, and the demands for the assembling of the States-General, for the instant reformation of abuses, for reduction of the national debts, and for other reforms, were the cries by which the Government was attempted to be embarrassed.

These preparations on the part of Spain were in one particular favourable to the King of England--they rendered the Emperor much more conceding. The English envoy at that Court--rather singularly a Swiss of the canton of Bern--the General de St. Saphorin, had found Stahremberg, the Emperor's Minister, very high, and disinclined to listen to the proposals of the King of England regarding Bremen and Verden; but the news of the Spanish armament, and still more of its having sailed from Cadiz to Barcelona, produced a wonderful change. The Imperial Court not only consented to the demands of England, but accepted its mediation with the Turks, by which a considerable force was liberated for the service in Italy. The Emperor acceded to the alliance proposed between England, France, and Germany in order to drive Spain to terms, and which afterwards, when joined by the Dutch, was called the Quadruple Alliance. In France, however, all obstacles to this Treaty were not yet overcome. There was a strong party, headed by the Marshal d'Huxelles, chief of the Council for Foreign Affairs, which strongly opposed this plan of coercing the grandson of Louis XIV. To overcome these obstacles Stanhope went over to Paris, and had several conferences with King Philip; and, supported by Lord Stair and Nancré, all difficulties were removed, and the Alliance was signed in the succeeding August.

By this treaty Parma and Tuscany were ceded in reversion to the infant Don Carlos; Sicily was to be made over to the Emperor, and, in exchange for it, Sardinia was to be given to Victor Amadeus of Savoy. As Sardinia was an island of so much less extent and value than Sicily, the succession to the Crown of Spain was guaranteed to the House of Savoy should Philip of Spain leave no issue. Three months were allowed for the King of Spain and the Duke of Savoy to come in, and after that, in case of their non-compliance, force was to be used to effect it. It was to avert such a result that Stanhope (now Secretary for the Southern Department, which included Foreign Affairs) made a journey to Spain, where he failed to make the slightest impression on Alberoni. Before setting out, however, Admiral Byng had been despatched to the Mediterranean with twenty-one ships of the line, and peremptory orders to attack the Spanish fleet whenever he should find it engaged in any hostile attempt against Sicily, Naples, or any other of the Emperor's possessions in the Mediterranean.

Byng went in pursuit of the Spanish fleet, which was assisting in the conquest of Sicily, and came in sight of twenty-seven sail of the line, with fire-ships, ketches, bombs, and seven galleys, drawn up in line of battle between him and Cape Passaro. So soon as they were clear of the straits, a council was held to determine whether they should fight or retreat. They came to no resolution, but continued to linger about in indecision till Byng was down upon them. Whereupon he utterly destroyed them (August 11, 1718).

Alberoni, though defeated at sea, was more successful in Sicily, and he continued his cabals against England in nearly every Court of Europe with only the more assiduity. He was zealously at work in France, England itself, Holland, Piedmont, and Sweden. By his ambassador at the Hague he endeavoured to keep the Dutch out of the Quadruple Alliance by exciting their commercial jealousy; but he was ably opposed by our minister there, the Earl of Cadogan. In Piedmont he endeavoured to deter Victor Amadeus from entering into this alliance by assuring him that he was only endeavouring to secure Sicily to keep it out of the hands of the Austrians, and reserve it for him; while, on the other hand, he threatened him with thirty thousand bayonets if he dared to accede to the Quadruple Treaty. The Allies, however, threatened still greater dangers, and the Duke at last consented to accept Sardinia in lieu of Sicily, and that island remains attached to the kingdom of Italy to the present time.

Foiled in these quarters, Alberoni appeared more successful in the North. A negotiation had been opened between the two potentates, so long at bitter variance, the Czar and Charles XII. of Sweden. They were induced to meet in the island of Åland, and to agree that the Czar should retain Livonia, and other Swedish territories south of Finland which he had torn from Sweden, but, in compensation, Charles was to be allowed to reconquer Bremen and Verden from George of Hanover and England, and Norway from Denmark; and the two monarchs were to unite their arms for the restoration of Stanislaus to the throne of Poland, and of the Pretender to that of Great Britain. The success of these arrangements appeared to Alberoni so certain that he boasted that the Northern tempest would burst ere long over England with annihilating fury; but even here he was doomed to disappointment. Charles XII. delighted in nothing so much as in wild and romantic enterprise. Such was that of the conquest of Norway; and he was led by his imagination to commence it without delay. With his characteristic madness, he divided his army into two parts, with one of which he took the way by the coast of Norway, and the other he sent over the mountains at the very beginning of winter. There that division perished in the snow amid the most incredible horrors; and he himself, whilst carrying on the siege of Frederickshall, was killed on the 11th of December, as appears probable, by the treacherous shot of a French engineer in his service. Almost simultaneously the Duke of Maine's conspiracy against the French Government was detected, and he and his wife, together with the Spanish Ambassador, were apprehended. There was nothing for it on the part of the Regent but to proclaim war against Spain--a measure which England had long been urging on him. The English declaration appeared on the 28th of December, 1718, and the French on the 9th of January, 1719.

In the session of 1719 Stanhope and his colleagues tried to undo the arbitrary measures of 1711 and 1714--the Occasional Conformity Bill and the Schism Bill. Stanhope would have made a strenuous effort to abolish not only these laws, but the Test Act itself; but Sunderland, though equally liberal, was more prudent, and showed that, to attempt too much was to ruin all; and when they came to introduce their greatly modified measure--that of annulling only some of the less prominent clauses of the Test Act under the name of a Bill for strengthening the Protestant interest--they found so much opposition that Sunderland's discernment was fully justified. Not only the two archbishops and some of the bishops opposed the measure, but the great Whigs, the Duke of Devonshire and Earl Cowper. Cowper, though he expressed himself willing to abolish the Schism Bill, stood stoutly for the Test and Corporation Acts as the very bulwarks of our constitution in Church and State; whilst the Earl of Islay declared even this moderate measure a violation of the union with Scotland. On the other hand, the Bishops Hoadley, Willis, Gibson, and Kennett supported the Bill, which, however, was not carried without considerable mutilation; and had Stanhope introduced such a measure as he proposed, including even considerable relief to Catholics, the whole would have been lost.

Parliament was prorogued on the 18th of April, and the king soon after set out for his German dominions, taking Stanhope along with him, and his mistress, the Duchess of Kendal. In appointing the Regency to administer affairs in the king's absence, the Prince of Wales was entirely passed over, to his great indignation; nor were he and the Princess allowed to hold levees, that duty being assigned to the young princesses, to the great scandal of the public, and further exposure of the discord raging in the Royal family. Even during the session the ministers had brought in a Bill to "settle and limit the Peerage in such a manner that the number of English peers should not be enlarged beyond six of the present number (178), which, upon failure of male issue, might be supplied by new creations; that, instead of the sixteen elective peers of Scotland, twenty-five should be made hereditary on the part of that kingdom; and that this number, upon failure of heirs male, should be supplied from the other members of the Scottish Peerage." Both the king and ministers flattered themselves that they should carry this Bill, and thus fetter the Prince of Wales when he came to the throne. The king was desirous to do this out of sheer jealousy and hatred of his own son, and the ministers, Sunderland in particular, out of dread of his vengeance in that case; for, if he created a dozen peers at a time, as Anne had done, he could easily swamp the Whigs and put the present ministers in peril of impeachment. But though the Whigs had been clamorous against the act of Anne, some of them now, Cowper and Townshend at their head, as vehemently denounced this measure as a gross infringement of the royal prerogative. The debate became very bitter, and many friendships were broken up by it, amongst others that of Addison and Steele, who took different sides; but the Bill was finally dropped, through the vigorous opposition offered to it by Walpole.

Scarcely had Parliament ceased to sit, and the king was gone to spend the summer months in Germany, when the vigilance of the Ministry was demanded to ward off a fresh invasion. Alberoni, defeated in his schemes on France, and his hopes of the invasion of England by Charles XII. crushed by that monarch's death, determined now to make a grand effort to support the Pretender himself. For this purpose, he invited him to Spain, and at the same time began the equipment of a formidable fleet to carry over a Spanish force, under the command of the Duke of Ormonde, to the shores of Britain. The Pretender was not intended to accompany the expedition, but to be in readiness to follow on the first news of its successful landing. But it was no more destined to reach these shores than the Grand Armada. It has always been the fate of invading squadrons to encounter providential tempests in coming hitherward, and the usual hurricane was ready to burst. Scarcely, indeed, had the fleet lost sight of Cape Finisterre before the storm swooped down upon it. For twelve days the terrible Bay of Biscay was swept by a frightful wind, which drove the vessels in all directions, and rendered it impossible to manage them. Fortunate would it have been if every vessel had failed to reach the shores at which they aimed; but two vessels, on board of which were the Earls Marshal and Seaforth, and the Marquis of Tullibardine, accompanied by about three hundred Spanish soldiers, reached Scotland, and landed, on the 16th of April, at Kintail, in Ross-shire. In the hope that Ormonde would still reach England, this small force lay quiet for some time, and so little did they excite notice, that the Government imagined that they had re-embarked. Their presence there, however, had the mischievous effect of exciting some few of the Highlanders to join them. They seized Donan Castle, and thus attracted the attention of the English. Some vessels of war arrived upon the coast. The castle was speedily retaken, and Lord Carpenter, the commander of the forces in Scotland, sent some troops from Inverness against them. General Wightman, the officer thus despatched, was attended by about a thousand men, and found the enemy, now swollen to about two thousand, strongly posted at Glenshiel. He immediately attacked them, and the miscellaneous force speedily dispersed. The Highlanders, who knew the country, rapidly disappeared amongst the hills, and the Spaniards had no other resource than to lay down their arms.

Alberoni now found himself in turn attacked by France. Whilst busying himself to repair a few of the shattered ships which had escaped from the tempest, in order to harass the coast of Brittany in conjunction with the malcontents there, he beheld an army of thirty thousand French menacing the Pyrenean frontier. War having begun, the Spaniards were utterly defeated by the French in Spain and by the Austrians in Sicily, thanks to the zealous co-operation of the British fleet under Admiral Byng. At length Philip was compelled to dismiss Alberoni.

The King of Spain hoped, by the dismissal of Alberoni, to obtain more advantageous terms of peace from France and England; but they still stood firmly to the conditions of the Quadruple Alliance. On the 19th of January, 1720, the plenipotentiaries of England, France, and Holland signed an engagement at Paris not to admit of any conditions of peace from Spain contrary to those of the alliance. Stanhope despatched his secretary, Schaub, to Madrid, to endeavour to bring over the queen to this agreement, and Dubois sent instructions to the Marquis Scotti, Father d'Aubenton, and others in the French interest to press the same point. She stood out firmly for some time, but eventually gave way, and the mind of the king was soon influenced by her. Some difficulties which could not be overcome were referred to a congress to be held at Cambray. On the 26th of January Philip announced his accession to the Quadruple Alliance, declaring that he gave up his rights and possessions to secure the peace of Europe. He renewed his renunciation of the French Crown, and promised to evacuate Sicily and Sardinia within six months, which he faithfully performed.

By the firmness of the Allies a peace which continued twelve years was given to Europe, and the storm which Alberoni had so fondly expected out of the North was as completely dissipated. The new Queen of Sweden had consented to yield absolutely to George I., as King of Hanover, the disputed possession of Bremen and Verden. Poland was induced to acknowledge Augustus of Saxony as king, and Prussia to be satisfied with the acquisition of Stettin and some other Swedish territory. But the Czar and the King of Denmark, seeing Sweden deprived of its military monarch, and exhausted by his wild campaigns, contemplated the actual dismemberment of Sweden. The Queen of Sweden threw herself for protection on the good offices of the King of England, and both England and France agreed to compel the Czar and the King of Denmark to desist from their attacks on Sweden if they would not listen to friendly mediation. Lord Carteret, a promising young statesman, was sent as ambassador to Stockholm, and Sir John Norris, with eleven sail of the line, was ordered to the Baltic. Russia and Denmark, however, continued to disregard the pacific overtures of England, trusting to there being no war with that Power. They ravaged the whole coast of Sweden, burning above a thousand villages, and the town of Nyköping, the third place in the kingdom. Seeing this, Lord Stanhope, who was still at Hanover with the king, sent orders to Admiral Norris to pay no regard to the fact of there being no declaration of war, but to treat the Russian and Danish fleet as Byng had treated the Spanish one. Norris accordingly joined his squadron to the Swedish fleet at Carlscrona, and went in pursuit of the fleet of the Czar. Peter, seeing that the English were now in earnest, recalled his fleet with precipitation, and thereby, no doubt, saved it from complete destruction; but he still continued to refuse to make peace, and determined on the first opportunity to have a further slice of Swedish territory. Denmark, which was extremely poor, agreed to accept a sum of money in lieu of Marstrand, which it had seized; and thus all Europe, except the Czar, was brought to a condition of peace.

George had arrived in England from his German States on the 11th of November of the preceding year, 1719, and opened Parliament on the 23rd. In his speech he laid stress on the success of his Government in promoting the evacuation of Sicily and Sardinia by Spain, in protecting Sweden, and laying the foundation of a union amongst the great Protestant Powers of Europe. He then recurred to the subject of the Bill for limiting the peerage, which had been rejected in the previous Session. George was animated by the vehement desire to curtail the prerogative of his son, and said that the Bill was necessary to secure that part of the Constitution which was most liable to abuse. Lord Cowper declared, on the other hand, that besides the reasons which had induced him to oppose the measure before, another was now added in the earnestness with which it was recommended. But Cowper was not supported with any zeal by the rest of the House, and the Bill passed on the 30th of November, and was sent down to the House of Commons on the 1st of December. There it was destined to meet with a very different reception. During the recess Walpole had endeavoured to rouse a resistance to it in both Houses. He had convened a meeting of the Opposition Whigs at Devonshire House, and called upon them to oppose the measure; but he found that some of the Whig peers were favourable to it, from the perception that it would increase the importance of their order; others declared that it would be inconsistent in them to oppose a principle which they had so strenuously maintained against a Tory Ministry--that of discountenancing the sudden creation of peers for party purposes; and others, though hostile to the Bill, declared that they should only expose themselves to defeat by resisting it. But Walpole persisted in his opposition, and declared that, if his party deserted him, he would contend against the Bill single-handed. He asserted that it would meet with strong resistance from the country gentlemen who hoped some time or other to reach the peerage--a hope which the Bill, if carried, would extinguish for ever.

By these endeavours Walpole managed to array a considerable body of the Commons against it. It was introduced on the 8th of December, and Sir John Pakington, Sir Richard Steele, Smith, Methuen, and others joined him in attacking it. Steele made a very powerful speech against it, but the grand assault was that of Walpole. He put out all his strength, and delivered a harangue such as he had never achieved till that day. He did not spare the motives of the king, though handling them with much tact, and was unsparingly severe on the Scottish clauses, and on the notorious subserviency of the Scottish representative peers. He declared that the sixteen elective Scottish peers were already a dead weight on the country; and he asked what they would be when made twenty-five, and hereditary? He declared that such a Bill would make the lords masters of the king, and shut up the door of honour to the rest of the nation. Amongst the Romans, he said, the way to the Temple of Fame was through the Temple of Virtue; but if this Bill passed, such would never be the case in this country. There would be no arriving at honours but through the winding-sheet of an old, decrepit lord, or the tomb of an extinct noble family. Craggs, Lechmere, Aislabie, Hampton, and other Ministerial Whigs supported the Bill; but, in the words of Speaker Onslow, the declamation of Walpole had borne down everything before it, and the measure was defeated by a majority of two hundred and sixty-nine to one hundred and seventy-seven.

In our time this defeat would, as a matter of course, have turned out the Ministry, but in that day it had no such effect. They continued to hold office, and to command undiminished majorities on other questions. Still more singular was its effect, for it induced them to offer office to their triumphant opponent Walpole, who not only accepted a subordinate post amongst them--the Paymaster of the Forces--but consented to support the very clauses regarding the Scottish peers which he had so firmly denounced, should they be inclined to bring forward the Bill a third time.

The spring of 1720 was a period of remarkable national prosperity. But "the grand money schemes projected of late," which appeared to the Jacobite Atterbury and others calculated to cement the royal peace and strengthen the foundation of the Government and nation, were destined to produce a very different effect. For the South Sea Bubble was about to burst. In 1711, Harley, being at his wits' end to maintain the public credit, established a fund to provide for the National Debt, which amounted to ten millions of pounds. To defray the interest he made permanent the duties on wine, vinegar, and tobacco, etc. To induce the purchase of the Government stock, he gave to the shareholders the exclusive privilege of trading to the Spanish settlements in South America, and procured them an Act of Parliament and a royal charter, under the name of the South Sea Company. The idea, hollow and groundless as it was, seized on the imagination of the most staid and experienced traders. All the dreams of boundless gold which haunted the heads of the followers of Drake and Raleigh were revived. The mania spread through the nation, and was industriously encouraged by the partisans of Harley. But this stupendous dream of wealth was based on the promises of Ministers, who at the Peace of Utrecht were to secure from the Government of Spain this right to trade to its colonies. The right was never granted by that haughty and jealous Power, further than for the settlement of some few factories, and the sending of one small ship annually of less than five hundred tons. This, and the Assiento, or privilege of supplying those colonies with African slaves, were the sole advantages obtained, and these were soon disturbed by the war with Spain, which broke out under Alberoni. The South Sea Company, however, from its general resources, remained a flourishing corporation, and was deemed the rival of the Bank of England.

It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.

Walpole, however, continued to oppose the South Sea Bill in the Commons, declaring that the terms were too extravagant ever to be fulfilled; that the experiment could result in nothing but a fearful increase of the costs of stockjobbing, and final confusion and ruin. He insisted that, before the proposals of the Company were accepted, the rise of their stock should be limited, and every means taken to prevent the fever of infatuation that would ensue from the promise of dividends out of funds which could never be realised. He proposed for this purpose the introduction of a clause fixing the number of years' purchase to be granted to the annuitants of the South Sea Company; but to this it was objected that it was the interest of the Company to take up the annuities; and, as the annuitants had the power of coming in or not, as they pleased, the Company would, of course, offer advantageous terms, and, therefore, the whole affair might be safely left to private adjustment. Aislabie added that the South Sea Company would not submit to be controlled in an undertaking they were to pay so dear for. The Bill passed both Houses.

The South Sea Company had immediately on the passing of the Bill proposed a subscription of one million, and this was so eagerly seized on that, instead of one, two millions were subscribed. To stimulate this already too feverish spirit in the public, the Company adopted the most false and unjustifiable means. They had eight millions and a half to pay over to Government as a _douceur_ for granting them the management of the Funds; and, therefore, to bring this in rapidly, they propagated the most lying rumours. It was industriously circulated that Lord Stanhope had received overtures at Paris to exchange Gibraltar and Port Mahon for invaluable gold lands in Peru! The South Sea trade was vaunted as a source of boundless wealth in itself. In August the stock had risen from the one hundred and thirty of the last winter to one thousand! Men sold houses and land to become shareholders; merchants of eminence neglected their affairs and crippled their resources to reap imaginary profits. The Company flattered the delusion to the utmost. They opened a third, and even a fourth subscription, larger than the former, and passed a resolution that from next Christmas their yearly dividend should not be less than fifty per cent.! In labouring to increase the public delusion they seem to have caught the contagion themselves, for they began to act, not like men who were blowing a bubble which they knew must speedily burst, but like persons who had mounted permanently into the very highest seat of prosperous power. They assumed the most arrogant and overbearing manner, even towards men of the highest station and influence. "We have made them kings," said a member of Parliament, "and they deal with everybody as such."

The spirit of gambling thus set going by Government itself soon surpassed all bounds, and burst forth in a thousand shapes. It was well known that the king, his mistresses, his courtiers, his son and heir apparent, were all dabbling busily in the muddy waters of this huge pool of trickery and corruption. A thousand other schemes were invented and made public to draw in fresh gudgeons, and the Prince of Wales allowed his name to stand as governor of a Welsh Copper Company. All ranks and classes rushed to Change Alley--dukes, lords, country squires, bishops, clergy (both Established and Dissenting), were mixed up with stockjobbers and brokers in eager traffic. Ladies of all ranks mingled in the throng, struggling through the press and straining their voices to be heard amid the hubbub. There and all over the kingdom were advertised and hawked about the following and other schemes:--Wrecks to be fished for on the Irish coast; plans for making of oil from sunflower seeds; for extracting of silver from lead; for the transmuting of quicksilver into a malleable and fine metal; for importing a number of large jackasses from Spain; for a wheel for perpetual motion; and, finally, for an undertaking which shall in due time be revealed!

The South Sea Company, with a folly of which extreme greed only is capable, endeavoured to put down these rival schemes and obtained an order from the Lords Justices and writs of _scire facias_ against several of these new bubbles. It was like raising a wind to blow away the bubbles, forgetting that their own was a bubble too, and would go with them. The moment that the people began to distrust one they distrusted all. The panic became as great as the mania had been. The South Sea stock dropped in less than a month from one thousand to below six hundred. There was a simultaneous rush to sell out, and the shares must have sunk instantly to _nil_ but for the gigantic exertions of the Company to raise money and buy in. The relief, however, was but temporary. The bankers and pawnbrokers who had advanced money on scrip broke and fled; merchants, goldsmiths, and speculators rushed away after them. Walpole was summoned in haste from Haughton to devise some means of staying the panic. He endeavoured to get the Bank of England to circulate three millions of South Sea bonds for a year; but the Bank, seeing that the case was desperate, declined it. This was decisive. The rage and despair of the swarming dupes were indescribable. They heaped execrations not only on the South Sea Company, but on Ministers, the king, his mistresses, and the Royal Family, who had all been deep in the affair, and who had taken good care of themselves. George landed at Margate on the 9th of November, soon after which the South Sea stock fell to one hundred and thirty-five. On the 8th of December Parliament met, and promptly began to investigate the scandal.

In the House of Lords on the 24th of January, 1721, five directors who had been called before them were arrested and their papers seized. By what had been drawn from them, it appeared that large sums had been given to people in high places to procure the passing of the South Sea Bill. Lord Stanhope rose and expressed his indignation at such practices, and moved that any transfer of stock for the use of any person in the Administration without a proper consideration was a notorious and dangerous corruption. The motion was seconded by Lord Townshend, and carried unanimously. The examination being continued on the 4th of February, Sir John Blunt refused to answer their lordships, on the plea that he had already given his evidence before the Secret Committee. A vehement debate arose out of this difficulty, during which the Duke of Wharton, a most profligate young nobleman, and president of the Hell-fire Club, made a fierce attack on Stanhope, accused him of fomenting the dissensions between the king and his son, and compared him to Sejanus, who had sown animosities in the family of Tiberius, and rendered his reign hateful to the Romans. Stanhope, in replying to this philippic, was so transported by his rage, that the blood gushed from his nostrils. He was carried from the House, and soon afterwards expired.

Lord Townshend succeeded Stanhope as Secretary of State. Aislabie, who had been deep in the iniquities of the South Sea affair, was compelled to resign his post as Chancellor of the Exchequer, to which Walpole succeeded. Meanwhile the Secret Committee appointed by the Commons continued its labours indefatigably. They sat nearly every day from nine in the morning till eleven at night, and on the 16th of February, 1721, they presented their first report to the House. This revealed a vast amount of Ministerial corruption.

On the very day that this report was being read in the House died one of the accused, James Craggs, Secretary of State. His complaint was smallpox; but the state of mind induced by this exposure is supposed to have rendered the malady fatal. His father, who was Postmaster-General, was so shamefully involved in the same dishonest proceedings, that he took poison.

Charles Stanhope, though clearly guilty, escaped, after examination in the House, by a majority of three, out of respect for the memory of his deceased relative, the upright Lord Stanhope. Aislabie's case came next, and was so palpably bad that he was committed to the Tower and expelled the House, amid the ringing of bells, bonfires, and other signs of rejoicing in the City of London. The bulk of his property, moreover, was seized. This was some compensation to the public, which had murmured loudly at the acquittal of Stanhope. Sunderland's case was the next, and he escaped by the evidence against him being chiefly second-hand. He was acquitted by a majority of two hundred and thirty-three against one hundred and seventy-two. As to the king's mistresses, their sins were passed over out of a too conceding loyalty; but no favour was shown to the directors, though some of them were found to be much poorer when the scheme broke up than they were when it began. Amongst them was Mr. Gibbon, the grandfather of the historian, who afterwards exposed the injustice of many of these proceedings, though at the time they were considered as only too merited. The directors were disabled from ever again holding any place, or sitting in Parliament; and their estates, amounting to upwards of two millions, were confiscated for the relief of the sufferers by the scheme.