Chapter IV: Part 4

William had hoped that his wants would have been met by the establishment, in accordance with a favourite plan of the Tories, of a Land Bank, as a rival to the Bank of England. This somewhat absurd scheme had been invented by a projector of the name of Chamberlain, who supposed that every proprietor of land possessing that security ought to have the disposal of at least as much money as his land was worth, and therefore suggested a bank which should lend money entirely upon landed security, overlooking the difficulty that land is not always at hand and payable on demand as money is. Harley, the representative of the Tories, now offered to advance the Government £2,500,000 at 7 per cent. The payment of his interest was to be secured by a tax upon salt. If half that sum should be subscribed before August, and half of that half paid up, the subscribers were to be incorporated as the Land Bank. This Bank was expressly intended to suit the wants of the country gentry, and to injure the moneyed interest. The company was therefore bound to lend no money but on mortgage, and to lend on mortgage at least half a million a year. It was not allowed to receive more than 3½ per cent. interest on these mortgages. Now, as the ordinary rate of interest on mortgages was nearly 7 per cent. it was plain that no capitalist would lend his money at half of the ordinary profits. It might have been plain also that the landed gentry whose chief object was to borrow were not likely to lend. It was not therefore very obvious where the capital was to come from. The King, however, hoping to obtain money on easy terms, headed the list of subscribers with £5000. When the Land Bank was called upon to advance its promised loan, it was found that the whole subscriptions consisted of no more than £6200. So eager was the Government for money, that it offered to give the Bank its charter in exchange for a loan of £40,000 only, but the subscriptions never rose beyond £7500, and the scheme proved completely abortive.

[Sidenote: The Bank of England supplies the money. Aug. 15.]

The King was compelled therefore to apply to the Bank of England, which by his patronage of the Land Bank he had done his best to injure. True to their political creed, a full court of subscribers consented to advance the necessary £200,000, without one dissentient voice. The Government was saved, and the connection between the Bank of England and the Whig party sealed for ever. Meanwhile, Newton's efforts as Master of the Mint had been ultimately successful. Provincial mints had been established, and from them and from the mint in London £120,000 of coin was turned out every day. By August the crisis was over, and a period of unbroken commercial prosperity began.

[Sidenote: Credit of England restored.]

But although marks of commercial prosperity were already visible, the financial difficulty was not entirely over. When William, who had been abroad during the worst of the difficulty, opened Parliament upon his return (Oct. 20), he had to confess that, although the crisis had passed without disturbance in England or great disaster abroad, there was still need for some exhibition of continued firmness on the part of Parliament. In fact, the plan of reducing the standard of the coin was so plausible, and had impressed itself so deeply on the ignorance of the masses, that a very large party both in and out of Parliament were still anxious to have recourse to that step, and till all chance of such a measure was gone no speculators were willing to put the new money in circulation, and it was constantly hoarded. Consequently a scarcity of money still prevailed; and not only in England, but throughout Europe, there was a very general feeling that England was ruined, that the source of wealth which had hitherto supplied the European coalition with the means of war was dried up, and that peace was inevitable. But in the midst of these difficulties the triumph of the Whigs was complete. The Parliament stood firm, and carried by a triumphant majority three resolutions, which destroyed all the hopes of the enemies of England. First, that the Commons would assist the King to prosecute the war with vigour; secondly, that under no circumstances should the standard of money be changed; thirdly, the Parliament pledged itself to make good the deficiencies in Parliamentary funds established since the King's accession. The first promise was at once abundantly fulfilled by munificent grants for the war; the second caused the immediate production of the hoarded coin; while upon the third was framed Montague's plan known by the name of the General Mortgage. Taxes set apart to meet the interest of various loans had proved insufficient. The deficit was no less than £5,160,000. It was now ordered that, should the proceeds of the old funds and new taxes now set aside for the purpose prove insufficient, the general funds of the country should be charged with the liquidation of the debts. By such means as these the credit of the country was finally re-established.

[Sidenote: The Assassination plot.]

The discovery of the Assassination plot, and the enthusiasm to which it gave rise, has been already alluded to. It was one of two Jacobite conspiracies, matured in the middle of the crisis, when it was a common belief that the Government would never be able to pass securely through the dangers which surrounded it. One of these conspiracies was for a general rising of the Jacobites and a simultaneous invasion of England from France. The completion of this plot was intrusted to James's natural son, the Duke of Berwick, and in it, had it been carried out, would have been involved all the best of the Jacobite gentry of England. But side by side with it was a baser conspiracy, among the more unprincipled and desperate friends of James, for the assassination of the King. The management of this conspiracy, which is known by the name of the Assassination Plot, was intrusted to Sir George Barclay, a Scotch refugee. It seems certain that the scheme was sanctioned by James himself, as Barclay was sent over with a few select followers and a considerable sum of money, authorised to do any acts of hostility which might conduce to the service of the King. It was also certainly known to the Duke of Berwick, who was informed of every step in its progress. He was too honourable himself to take a declared part in it, but did not feel called upon in any way to interfere in the matter. His own mission proved unsuccessful. The English Jacobites were willing to rise, but not till a French army appeared in the country. On the other hand, Berwick could only assure them that, after the failures which had already taken place, no French army would enter the country till the Jacobites were actually in arms. On this point the negotiations broke down, and Berwick, unwilling to be mixed up with the darker schemes of Barclay, hastened to leave England before the fatal day should arrive. This day, the 15th of February, had been already fixed. Barclay had succeeded in collecting about forty men, some supplied from France, some English Jacobites of desperate character. With these it was determined to assault the King on his return from hunting in Richmond Forest. Every Saturday he was in the habit of going thither, crossing the Thames by boat near Turnham Green. The spot chosen was a narrow swampy lane leading up from the river. But, just before the time fixed, William received from Portland information that there was a design upon his life. He was induced to postpone his hunting, although he gave little faith to the information, which had been received from most untrustworthy sources. But in the course of the following week fresh information was brought by a gentleman of the name of Pendergrass, who was known to be an honourable man. Every precaution was taken to allay the suspicions of the conspirators, and on the very day when the attempt should have been made several of the leaders were arrested. The troops were set in motion, the Lord Lieutenant of Kent repaired to his county, and Russell hastened to take command of the fleet to oppose the intended invasion. French troops had been already collected at Calais, and Louis, who had been informed of the scheme, though he had not actually authorized it, had determined to take advantage of the opportunity its success would offer.

[Sidenote: Excitement in the country. Feb. 24.]

[Sidenote: Arrest and execution of the conspirators.]

The measures taken proved sufficient. When the King went in state to Parliament, and explained what had been done, the enthusiasm of the House was roused. Two Bills were rapidly passed, the one suspending the Habeas Corpus Act, the other ordering that the Parliament should not be dissolved by the death of William, and an association was set on foot by which the House of Commons bound itself to stand by King William, to avenge his murder, and to support the order of succession settled by the Bill of Rights. Throughout the country the feeling excited was very strong. Means were taken in all the cities of England to search thoroughly for conspirators, the house of one of them was razed to the ground by the populace, and one after the other most of them were captured. Three of them, Charnock, King and Keyes, were brought to trial. Only a few months before, a Bill which had occupied the public attention through several sessions had received the royal assent. By this the procedure in the case of trials for treason had been changed. Before the passing of that Bill a prisoner charged with treason had not been allowed to see the indictment before he was brought to the bar. He could not put his witnesses upon oath, nor compel their attendance, nor was he allowed the service of counsel, while the Crown enjoyed all the advantages of which he was deprived. The Bill enacted that all the above-named disabilities should be removed. The opposition to this Bill had been grounded chiefly upon the advantage it appeared to give to traitors at a time when the Government was notoriously open to their attacks; and Parliament had, by way of compromise, postponed till the 25th of March 1696 (at that time the beginning of the new year) the operation of the Act. The prisoners claimed, not without some show of reason, a postponement of the trial till that date. But their request was overruled, the trial was proceeded with at once, and they were all condemned and executed (March 24).

[Sidenote: Trial of Sir John Fenwick. Aug.]

[Sidenote: His execution. Jan. 28, 1697.]

But, by the witness of two of the informers, Porter and Goodman, a more important person had been implicated, if not in the present plot, yet at least in one of a similar nature which had been set on foot immediately after the Queen's death. This was Sir John Fenwick, a man highly connected, who had brought himself prominently forward as a Jacobite intriguer, and had earned the personal dislike of William by a public insult to the Queen. By the law of Edward VI. two witnesses were necessary to prove the guilt of treason, and Fenwick's chief hopes lay in his being able to bribe either Porter or Goodman to leave the country. His first attempt on Porter failed. Porter informed the Government, received the money, and gave up the agent who offered it him. Fenwick then attempted to gain time by making a confession. This was drawn up with great art: while none of the real facts were brought to light, accusations, only too well founded upon fact, were brought against Marlborough, Godolphin, Russell, and Shrewsbury. It was asserted that Marlborough had promised to bring over the army, Russell the navy, while Godolphin only held office by the leave of the exiled King. William, with great wisdom, although he knew how much truth there was in these accusations, absolutely ignored them, and ordered the trial of Fenwick to be proceeded with without delay. But some of the contents of the confession became known, and the Whigs decided that, for the honour of the party, it could not be passed over in silence. Godolphin, the last remaining Tory in the Government, they would have been unwilling to acquit; he was induced to resign, and the course was now clear. It was of the highest importance that a real confession should be got from Fenwick, but this he now refused to give, as he had just received information that his agents had contrived to get Goodman, the second witness against him, out of the country. Exasperated by seeing, as they thought, the enemy, who had tried to undermine the character of their chiefs, slipping from their grasp, the Whigs brought the question before the House. The confession was voted false and scandalous, and rather than let their victim escape, in the heat of their anger, they determined to have recourse to the dangerous expedient of a Bill of Attainder (Nov. 13). This attempt, which, as it superseded the law of the land by an exercise of the power of Parliament, had an unconstitutional and revengeful appearance, met with the strongest opposition, but was carried in the Lower House by a small majority. The question became one of party, and finally, after a long struggle, it passed the House of Lords by a majority of only seven. Great interest was made for the prisoner, but William refused to listen to any request for pardon, and Fenwick was executed. William's inflexibility is better explained by his desire to shield the Whig party, whom Fenwick would certainly have accused during his trial, than by the supposed existence of a personal hostility between himself and his prisoner.

[Sidenote: Complete triumph of the Whigs. April 16.]

This troublesome business having been got rid of, the session closed in complete triumph for the Whigs, among whose leaders promotions were freely distributed. Somers was raised to the Peerage and made Lord Chancellor, Russell became Earl of Orford, and Montague became First Lord of the Treasury. This triumph of the party reached its climax in the course of the year, when the war was brought to an end, and the policy of William and the Whigs vindicated by the signature of the Peace of Ryswick.

[Sidenote: Louis desires peace.]

[Sidenote: Opposition of the coalition.]

[Sidenote: Terms of peace.]

[Sidenote: Treaty of Ryswick. Sept. 10.]

During the critical year 1696 want of money had paralyzed the action of both armies in the Netherlands, the destruction of the French magazines at Givet had rendered it difficult for Louis to maintain his troops, while William, though England was by no means exhausted as France was, was as completely hampered by the want of ready money. Louis had indeed in the course of the year made overtures for peace, but the improvement in his prospects, caused by the conduct of the Duke of Savoy, who had deserted the coalition, joined his army to the French under Marshal Catinat, and successfully insisted that Austria and Spain should declare the neutralization of Italy, had induced him to recede from one of the fundamental conditions of peace--the recognition of William as King of England. The negotiations had been broken off, but succeeding events induced Louis, in 1697, to renew his proposals. The Assassination Plot had failed; William was more popular and better supported than he had ever been; the country had passed successfully through its period of crisis, had emerged more powerful than ever and more determined to support the war, and the great French military project for the capture of Brussels had been thwarted by the rapidity of William's movements. Louis therefore now, for the first time in his life, offered reasonable terms, consenting to resign many of the conquests he had made during the war, to give back Lorraine to its Duke, Luxemburg to Spain, Strasburg to the Empire, and to acknowledge the King of England. William, who was never carried away even by his most impetuous feelings, much as he hated France, at once recognized the justice of these offers and the wisdom of accepting them. He found however much difficulty in managing the coalition. The two great powers who had done the least to support the war now did all in their power to frustrate the pacification. Spain, moved by a foolish vanity little suitable to its weak condition, made demands which it was impossible that Louis should grant, while the Emperor, moved by selfish policy, would have been only too glad to continue a war, carried on chiefly at the cost of England, till the death of the Spanish King, which was every day expected. He would then, he imagined, be able to secure by means of the European coalition his succession to that monarchy. At length, after many difficulties, plenipotentiaries from France and the coalition were assembled (March 1697), the one party at the Hague, the other at Delft, and conferences were held at Ryswick, which lies nearly equidistant between these two towns. But the ceremonies of diplomacy, the ridiculous details of precedence, seemed to promise that the negotiations would be dragged out to an interminable length. William was not to be so treated. Having made up his mind that peace was desirable and that the terms offered were fair, he was determined that the peace should be speedily made. While the plenipotentiaries were wasting their time at Ryswick, a series of private meetings took place between Portland and Marshal Boufflers, between the armies, a few miles from Brussels. A few meetings sufficed to settle the terms, which were reduced to writing on the 6th of July. Beyond the general terms of treaty already offered by France, some personal questions between William and Louis had to be settled. A mutual promise was exchanged that neither king would countenance assaults upon the other. William was to be acknowledged as King of England, and the Princess Anne as his successor. Mary of Modena was to receive whatever sum of money the English Law Courts held to be her due; and though Louis, with his usual magnanimity, refused to stipulate that James should leave France, it was understood that he should withdraw either to Avignon or to Italy. Spain and the Emperor still refused to accept the proffered terms. Louis declared that, unless they were accepted by the 21st of August, he should no longer hold himself bound by them. The day passed, and, as was to be expected, the French King raised fresh demands; he would no longer surrender Strasburg. But the opposition of Spain had already been crushed. The disasters of the year had brought that country to reason; Vendome had captured Barcelona, and a French fleet, joined by the buccaneers of the West Indies, had taken and sacked Carthagena. William therefore, though much vexed at the obstinacy of the Emperor, which involved the loss of Strasburg, found himself able to accept the new terms, in concert with all the great powers of the coalition, with the exception of the Emperor, and at length, on the 10th of September, a treaty was concluded between France, Holland, Spain and England. France surrendered all the conquests made since the Treaty of Nimeguen, and placed the chief fortresses of the Low Countries in the hands of Dutch garrisons; William was recognized as King of England, Anne as his successor, and all assistance was withdrawn from James. A month later the Emperor also consented to treat. By this second treaty all the towns acquired since the Peace of Nimeguen, with the exception of Strasburg, were restored, together with Fribourg, Brissac, Philipsburg, and all French fortifications on the right bank of the Rhine. Lorraine was restored to its Duke, Leopold, who granted however a passage through his dominions for French troops. The Elector of Cologne was recognized, and the rights of the Duchess of Orleans upon the Palatinate compromised for money. William and the European coalition were thus triumphant. Louis had for the first time to withdraw to his own boundaries, and the succession of England was secured. At the same time France gained what had now become absolutely necessary, time to recruit her strength, and leisure to prepare for that great struggle which all men saw to be imminent, when the death of Charles II. of Spain, without a direct heir, should leave the succession of that great monarchy to be disputed among the various claimants.

The joy of England at the conclusion of the war was enthusiastic. The King made a triumphal entry into London, and was everywhere received with enthusiasm. The crowning point of his reign had been reached. Almost without knowing it, he had solved the great constitutional question of the time, and, supported by a ministry in harmony with the Commons, and the national representatives in harmony with the people, had triumphantly brought to conclusion the great objects of his life, established the Protestant succession in England, and proved to Louis the necessity of respecting the rights and feelings of the rest of Europe.

[Sidenote: The Parliament reduces the standing army.]

On the very day after the rejoicings to celebrate the Peace of Ryswick, on the 3rd of December 1697, the Parliament, which had hitherto shown itself so firm in support of the Crown, so unanimous and vigorous in its action, met for its third and last session. William had every right to expect a period of peace and prosperity. But, unfortunately, the very success for which England was rejoicing brought with it the seeds of faction and division. For at once a question had to be settled, on which the Whig party was itself divided, and on which the national feeling was on the whole strongly opposed to the King. The establishment of peace naturally involved the question of the fate of the great army, numbering more than 80,000 men, which England had kept up for the last nine years. The nation, suffering heavily from taxation, was not likely to be willing to continue in peace the efforts made during war. It was, moreover, a deeply ingrained feeling among the country gentry of both parties that a standing army in time of peace was an intolerable evil. The Tories had indeed already adopted the policy which long marked the party. They would have wished England to confine itself, even in war, to the pursuit of success upon the sea, which they regarded as her natural element, and to have withdrawn as far as possible from all the complications of Continental policy. But, even setting aside this view, the experience of both parties led them very naturally to regard an army in time of peace as the inevitable instrument of tyranny. While the Tories remembered with horror the triumphant Ironsides of Cromwell, the Whigs recalled with no less detestation the importation of Irish troops at the close of the last reign, and London overawed by the great camp at Hounslow. On the other hand, William, with his eyes fixed abroad, with a profound mistrust of France, and certain knowledge of the rapid approach of another great Continental quarrel, could not bring himself to approve of the breaking up of an army which he had brought to such perfection. The ministry, under his immediate influence, and guided by the far-sighted sagacity of Somers, believed, like the King, in the approach of fresh danger, and thoroughly disbelieved in the efficacy of half-drilled militia to withstand such well-trained troops as Louis had always at his disposal. The national feeling was, however, too strong to be withstood. A resolution was passed that the number of soldiers should be reduced to the same amount as had been kept on foot after the peace of Nimeguen, a resolution which was liberally construed by the Government to mean 10,000. On other points the ministry and the Parliament remained at one. It was in vain that an attack was directed against William's lavish grants of Crown lands, in vain that an accusation of peculation was directed against Montague, it resulted only in a formal declaration on the part of the Commons of the great services of that statesman.

[Sidenote: The East Indian trade.]

[Sidenote: Formation of the General East India Company. 1698.]

[Sidenote: The two Companies united. 1708.]

Montague's success as a financier had indeed reached its culminating point in this session by the temporary settlement of the question with regard to the Indian trade which had so long excited the commercial public in England. It has been incidentally mentioned that the renewal of the charter to the East India Company in 1693 had produced the fall of Lord Caermarthen. The Company, originally consisting chiefly of Whigs and incorporated by royal charter, had, in the hands of Sir Josiah Child, who exerted an almost dictatorial authority in its management, allied itself closely to the Tories. Its monopoly had also become very unpopular, as the increase of capital and the great receipts of the Indian trade had excited a wish among the mercantile community to enter more largely upon that branch of traffic. As early as 1691 an association of its enemies had been formed, which, although it was not chartered, was commonly spoken of as the new Company, and had succeeded in obtaining a request from the Parliament to the King that he would give the old Company the three years' notice of the withdrawal of its charter which was legally required. An accidental illegality had in fact just then invalidated the charter. It was to procure its restoration that, in 1693, Cook, to whom Child had now relinquished much of his authority, had so lavishly expended the secret service money, some of which had been traced to Caermarthen. His bribery was successful. The charter was renewed by the King, but the Parliament, at the instigation of the new Company, took a different view of the question, and declared that every man had a right to trade, unless debarred by Act of Parliament. This declaration of the limits of the constitutional power of the Crown in matters of trade William could not venture to oppose. From that time onwards, therefore, the trade had been legally free, but the power of the Company had been so great in the Indian seas, and its conduct so oppressive, that it had been impossible for free traders to carry on their business with any success. Again, in 1698, the question was strongly pressed upon the attention of Parliament, and again the old Company found strong supporters in the Tory party, while the Whigs upheld the demands of those who wished to participate in its advantages. There was a division in the views of the opponents of the Company. Some were eager for perfect freedom of trade, while others joined in the general feeling of the nation, that, although the present monopoly was a bad one, some sort of restriction was still necessary. It was understood that to advance money to Government was the surest way to obtain its support, and the old Company offered £700,000, at four per cent., as the price of the renewal of its charter. But Montague, anxious for money to relieve the embarrassments of the Government, anxious to establish a second great Whig society of capitalists, who would support him as the Bank had already done, believed that he saw his way to gaining those ends by opposing the Company, and brought forward a plan by which he hoped to secure the support of both sections of its opponents. He suggested the formation of a company, to be called the General Company, and proposed that a loan of £2,000,000, at eight per cent., should be advanced to Government, and that the subscribers should receive the monopoly of the Indian trade, but be free from the obligation of trading as a joint-stock society, unless they should afterwards wish it. He carried the Bill for its formation through Parliament, and, in spite of the forebodings of his enemies, found that the immense sum which had been promised was readily subscribed in two or three days. The Bill was carried on the 3rd of September, but, on the 5th of the same month, the greater part of the subscribers declared their desire to become a joint-stock company, which was therefore chartered by Act of Parliament by the title of the English Company trading to the East Indies. The struggle between the companies was found to be so destructive to English trade, that, in 1702, arrangements for their union were made. A common court of managers was established, their stocks equalized, and trade carried on under the name of the United Company of Merchants trading to the East Indies. But each company still traded with its own separate stock. Many inconveniences still attended this division of interests, and at last, in 1708, upon the award of Lord Godolphin, a final and complete union was made; and, as the separate adventurers who had not joined either company were bought out, the monopoly again fell into the hands of the great United Company. But though his plan was thus ultimately a failure, for the moment Montague had all the credit of another great financial triumph, and the Whig party might reasonably expect that, in spite of the one single defeat with regard to the standing army, their position would be as good in the new Parliament as it had been in that which was just closing.

[Sidenote: William's attention directed to the Spanish succession.]

[Sidenote: First Partition Treaty.]

Meanwhile the King's personal attention had been as usual directed rather to foreign than to home politics. The great question which at once occupied the minds of diplomatists after the Peace of Ryswick was the succession to the throne of Spain. It seemed very improbable that Charles II., a miserable hypochondriac, should live much longer. At his death there threatened to be a general scramble for his vast possessions. Early in the year, an embassy of unusual grandeur had attended Portland to France. The question had been there opened, and a corresponding French embassy under Tallard had subsequently and with the same object been sent to London. On the dissolution of Parliament the scene of negotiation was transferred to Holland. The question was one of great intricacy and difficulty.[2] It was not easy to point out the legitimate successor, even had it been possible to allow the Spanish monarchy to pass unbroken into the hands of any of the claimants. The eldest of Charles's sisters had married Louis XIV., a younger sister had married Leopold of Germany. Leopold was himself Charles's first cousin, grandson of Philip III. In direct descent, therefore, the Dauphin stood next to the Spanish king. Next to him came the offspring of Leopold's first marriage with the Spanish Princess, namely, the Electress of Bavaria, but she gave over her right to her son, the Electoral Prince. The third in order was the Emperor Leopold. But the marriage of the Infanta with Louis had been accompanied by a formal renunciation of her rights, sanctioned by the Cortes. The marriage of the second Princess with Leopold had been attended by a similar renunciation, not sanctioned by the Cortes. The marriage of Leopold's mother with the Emperor had been attended by no renunciation at all. Thus, if the renunciations were valid, the claims in accordance with them came in exactly the opposite order to the claims by order of descent. But the change in the balance of Europe involved in the accession to the throne of Spain of a prince of either the imperial house of Germany or the royal house of France was of far graver importance than the mere legal rights to the throne. Both Leopold and the Dauphin, conscious that Europe would not submit to their acquiring Spain for themselves, had handed on their claims to representatives, who might be considered as comparatively harmless. Leopold had substituted for himself the Archduke Charles, his son by a second marriage, the Dauphin his second son Philip. But, in spite of this arrangement, France, England and Holland had considered it dangerous that the Spanish dominions should pass entire into the hands of either of the claimants, and the negotiations of this year were directed to forming a plan for dividing them with some sort of equality among the three. The product of these negotiations was the First Partition Treaty, definitively signed at the Hague on the 11th of October. By this the bulk of the Spanish dominions--Spain, the Indies, and the Netherlands--was to pass to the least powerful of the three claimants, the Electoral Prince. France was to receive Guipuscoa in the north of Spain, and the Two Sicilies; the Austrian competitor was to be satisfied with the Milanese. The treaty had been arranged as quietly as possible, but the republican institutions of Holland were not favourable to secresy. Rumours of what had been done reached Spain. The desire of the King and the Castilians was to preserve at all hazards the integrity of the Empire. Charles was therefore persuaded to make a will, and to declare that candidate whom France and England seemed most to favour, namely, the Electoral Prince, heir to his whole dominions; and thus for a time the matter rested.

[Sidenote: New Parliament. Tory reaction. Dec. 6, 1698.]

[Sidenote: The Country Party.]

[Sidenote: Dismissal of the Dutch guards.]

Having thus temporarily settled his position abroad, William returned to England with the hope of a peaceful session. The hope was singularly falsified by the event. The great Whig party, so noble and united in adversity, had fallen to pieces, and a Tory reaction begun. The greatness and success of its measures had left room for faction. The unpopularity both of William and Montague afforded opportunity for the attacks of malcontents. On the assembling of Parliament after the new elections (Dec. 6, 1698), it became evident that a large number of unknown men who had been elected, although nominally Whigs, intended to make common cause with the extreme Tories, and that this united faction, under the title of the Country Party, would form an opposition against the Crown. The last session had already marked out the lines this opposition would take. The points at issue would be the maintenance of the army, the distribution of Crown grants, and the conduct of individual members of the ministry. On the first of these points the King did not act wisely. Unable to understand the insular politics in favour with the English, he insisted that the ministry should propose a standing army of 20,000 men. Afraid to introduce a Bill which they knew they could not carry, the ministry suffered the initiative to slip from their grasp, and a private individual was allowed to propose that the number of troops should be further lessened to 7000, and that all those 7000 should be born Englishmen. In spite of the efforts of the ministry the Bill was carried, and William found himself compelled to order the departure of his favourite Dutch guards. Hurt to the quick, he seriously formed the intention of quitting England. He even drew up his farewell speech, and was only moved to remain by the earnest prayers of Somers and by his own returning wisdom.

[Sidenote: Rivalry between the two Houses.]

Assured of their majority, the Opposition proceeded to attack the late ministry. Their favourite object was Montague, who had laid himself open to their assaults by the pride and luxury which he had exhibited in his good fortune, and still more by the indecent rapacity with which he seized on the valuable place of the Auditorship of the Exchequer, worth at least £4000 a year; this he placed in the hands of his brother, to be held until he should want it. The next victim was Russell, Lord Orford, whose administration only escaped censure by a single vote. And before the session closed, the third point, that of grants of Crown lands, was touched upon in a way which produced much after disaster. The method used on this occasion illustrates a point deserving of notice. The Revolution had placed the supreme power in the hands of Parliament; but Parliament itself consists of two elements, of two Houses drawn from different classes. Besides the general party struggles, besides the frequent contests between King and Parliament, and subsequently between Parliament and people, there was therefore a class rivalry between the two Houses, which had shown itself already on more than one occasion during the reign, and was rendered more prominent now by the fact that the party feeling in the Upper House was on the whole decidedly Whig. The weapon which the Commons intended to use in this strife was their exclusive right of introducing money Bills. Those Bills the Upper House had the power of rejecting entire, but not of amending. The Commons now "tacked" or appended to the Bill for the Land Tax a clause appointing seven Commissioners to inquire into the manner in which the forfeited land in Ireland had been granted out. This obnoxious clause the Lords were compelled to pass, or to reject the Bill entirely, and thus stop the supplies. Though keenly feeling the coercion put upon them, by a plan which would have proved fatal to the Upper House had not the good feeling of the nation and the strength of popular opinion ultimately compelled the Commons to abandon it, the Lords passed the Bill, feeling probably that the present occasion was scarcely important enough for a great constitutional struggle. The Money Bill having been passed, the King, in some anger, prorogued the Parliament (May 4).

As usual, when Parliament was not sitting, William withdrew to Holland, a habit which, now that the war no longer necessitated his presence there, increased his unpopularity in England, and the session of Parliament which he returned to meet in November 1699 was still more stormy than the last.

[Sidenote: The Darien scheme.]

The discontent in England was backed up by more serious discontent in Scotland. The whole of that nation might be now reckoned among the enemies of the Court. For, during the recess, on the 5th of October, certain news had reached England of the failure of the great Darien scheme, and the complete destruction of those wild hopes of wealth and greatness which had been for the last four years buoying up the Scotch nation. Paterson, the same man whose scheme for the Bank of England had in the hands of Montague proved so successful, was the originator of this disastrous project. He had persuaded himself that the natural wealth of a country has nothing to do with its prosperity. The commercial cities of the ancient world, and Venice and Holland in modern times, had risen to greatness and wealth without any territorial possessions of importance. He believed that he could reproduce this phenomenon in the case of Scotland. The scheme of Columbus had been to introduce the wealth of the East by a short and direct route into Europe, and thus to destroy the traffic of the Venetians. He had found his plan thwarted by the interposition of America; and the discovery of a passage round the Cape of Good Hope had turned all men's attention in that direction, and had been the great source of wealth both to the Dutch and Portuguese. But the plan of Columbus had never been quite forgotten, and Paterson now thought to renew it by establishing a line of communication across the Isthmus of Darien. The Scotch were to colonize and occupy the isthmus, which would become, in the view of the projector, the great emporium of the whole Eastern trade. Although he did not explain the details of his scheme, it was listened to with enthusiasm by his fellow-countrymen; and in 1695, an extraordinary Act passed the Scotch Parliament, and received the assent of the Lord High Commissioner, authorising the formation of a Corporation, half the capital of which was to be held by Scotchmen, with the monopoly of the trade with Asia, Africa, and America for thirty-one years. With the exception of foreign sugar and tobacco, all its imports were to be duty free. Every servant of the Company was free from imprisonment and arrest. The Company was authorized to take possession of unoccupied territories and exercise legal rights, and the King promised to obtain satisfaction at the public charge if foreign powers assaulted it. Subscriptions to the amount of £200,000 and upwards were speedily forthcoming, and a branch of the Company established itself in London. There, however, the absurdities of the plan were at once discovered, and it met with a very cold reception. Any colony, to be useful, must be either in America or in the Spice Islands; now interference in America would not be tolerated by Spain, nor would Holland look on quietly at the occupation of the Spice Islands; a maritime war was in fact inevitable; Scotland, singlehanded, could scarcely hope to carry on such a war, and England would almost infallibly be drawn into it, and this on behalf of a Company which, by changing Scotland into a free port, would virtually make it an enormous centre for smuggling to the extreme detriment of English trade. The attention of the King was drawn to the subject. He expressed his entire disapprobation of the scheme, and dismissed the Lord High Commissioner and the Secretary; but the law was made and could not be rescinded. In 1698, in the midst of wild enthusiasm, 1200 colonists set out from Leith, with Paterson among them, and reached Darien in safety, and there established their colony, but almost immediately came into contact with the neighbouring Spanish governor, and the inevitable war began. At first, however, the reports were favourable, and in the following year a new armament of four ships and 1800 colonists left Scotland for Caledonia, as the new settlement was called. They had not been gone long before news arrived at New York that the colony no longer existed, and that the wretched remnant of its inhabitants had sought refuge in New England. In fact, the climate had proved eminently unhealthy, in spite of the assertions of Paterson. Provisions had failed, and, worn out and enfeebled, the colonists, feeling themselves entirely unable to repell the assaults of Spain, determined to withdraw. After miserable suffering, a few of them reached New York, and the second expedition arrived in Caledonia to find only uninhabited ruins. They determined upon reoccupying these, rebuilt the fort, and during the few healthy months continued, though with heavy losses, to carry out their operations. But before long a Spanish fleet appeared before the town, and an army, marching across the isthmus from Panama, blockaded it on the land side. Resistance was impossible. Already 300 of the new-comers had died, the survivors promised to depart within a fortnight, and on the 11th of April left the colony for ever. The disaster was regarded by the Scotch as a national injury on the part of England. The Company had throughout excited great anger in the Southern kingdom; the colonial governors had done all they could to discourage the colony when it arrived, and the Scotch were ready to trace this opposition to national jealousy,--to attribute it even to William's partiality for his Dutch subjects, whose trade might have been injured. In truth, the whole business was a proof, as William pointed out to the House of Lords, of the difficulty of managing two countries with different interests under one Crown, and the necessity of a closer union between the nations.

[Sidenote: New Parliament Nov. 16, 1699.]

[Sidenote: Irish forfeitures.]

[Sidenote: Resumption Bill passed. April 10, 1700.]

[Sidenote: Parliament prorogued. April 11, 1700.]

It was thus, supported by the discontent of Scotland, that the malcontents of Parliament resumed the question of the management of the royal property. After a fruitless attack upon Somers, who had indeed received a grant, but one against which no reasonable complaint could be made, they proceeded to follow up the work of the last session, and to act upon the recommendation of the seven Commissioners who had been appointed by the tacked clause of the preceding session. The Crown lands had been constantly dealt with according to the King's pleasure, without parliamentary interference. In early times, however, they had been regarded as a trust. Parliament had frequently demanded that the King should live upon his own revenues, and Acts for the resumption of grants had been passed, the last being that immediately following the battle of Bosworth. Since then the gift of the Crown had been considered a perfectly sound title. Whatever dislike, therefore, William's lavish grants to his Dutch favourites had excited, there would have been very great difficulty in calling in question his right to make them. The use to which the forfeited lands which had fallen into William's hands after the Pacification of Limerick had been put was more open to objection. A Bill ordering them to be applied to the public service had been interrupted and left incomplete, and the King had promised that the Commons should have another opportunity of considering the question. As they had since taken no steps in the matter, he seems to have considered himself free to act as he pleased. Of the forfeited lands, which amounted to about 1,700,000 acres, a fourth had been restored to its ancient possessors, according to the Limerick Pacification. Some of the rest had been mercifully given back to Irishmen, some to men like Ginkel and Galway, who had distinguished themselves in the Irish wars, but by far the larger portion had fallen to the King's personal friends, such as Woodstock, the eldest son of Portland, and Keppel, Lord Albemarle. The Commission could not arrive at unanimity, and sent up two reports. But that of the majority, which was very hostile to Government, was alone accepted by the Commons. It ridiculously over-estimated the grants at a sum of, £2,600,000, and at the same time declared that very undue leniency had been shown to the Irish. Had these grants not been made, and the confiscations properly exacted, much of the present heavy taxation, they said, might have been spared. The Commons, longing to be free from taxes and hating the Dutch favourites, took up the matter with factious warmth, and the Resumption Bill was passed, vesting all the forfeited lands in the hands of trustees, and offering large rewards to informers who would point out lands which ought to have been confiscated. They even, with palpable injustice, included in their inquiry lands which had never been forfeited. Expecting opposition from the Upper House, they again tacked this Bill to the Land Tax Bill. The Lords now determined upon a struggle. Little as they liked the Dutch favourites, they could not allow themselves to be thus overridden. Their opposition was, however, unsuccessful; the nation felt with the Commons, and foreign affairs had reached a crisis which rendered peace at home necessary to the King. The quarrel was pressed so far as to threaten a complete breach between the Houses, and a fatal blow to the Constitution. By the influence of the King the Lords were induced to yield, and the triumphant Commons were passing to fresh assaults on the King's friends, when, having passed the Land Tax Bill and thus supplied himself with money, William suddenly prorogued the Houses.

[Sidenote: Second Partition Treaty.]

The necessity which had driven him to this step was the reopening of the question of the Spanish succession. In January 1699 the Electoral Prince had died. The whole question thus assumed a new shape, and William's undivided attention was required. For the same reason, probably, and to allay the opposition in the House, he thought it necessary to remove Somers from office, and to place the Great Seal in the hands of Sir Nathan Wright. The Second Partition Treaty, which the King was now engaged in arranging, was such as was rendered necessary by the death of the third claimant. The bulk of the Spanish dominions was now to be given to the Archduke. It was to him that now Spain, the Indies, and the Netherlands were assigned, while Milan, which had formerly fallen to his share, was to be transferred to France, to be ultimately exchanged for Lorraine, a German fief, very important to round off the French dominions. But again these arrangements were upset. Portocarrero, the Spanish minister, was in the French interest, and supported by Harcourt, the ablest French diplomatist. By playing upon national feeling, which was strong against any partition, these statesmen excited the anger of the Spaniards against William, who had already incurred their enmity by his fancied support of the Darien scheme; and Charles was at length impressed with the absolute necessity of making another will. The events of the late session had given rise to the belief that William was not really master of England, while the visible greatness of France seemed to afford the best chance of keeping the Spanish monarchy undivided; the will was therefore made in favour of the Dauphin's son Philip, Duke of Anjou, who was declared heir to the whole of the Spanish dominions. The treaty was not well received in England. While one party clamoured that too much was given to France, another complained of the injustice of forestalling the wishes of the Spanish people, and there was a general feeling of anger at the secresy with which the treaty had been arranged, a treaty which might easily draw England into a foreign war, and which had been concluded entirely without consulting Parliament. This anger reached its highest point when, in November, the King of Spain died, and Louis, in defiance of all his treaties, accepted his grandson's great inheritance. William had determined that the whole responsibility should lie with himself, trusting in his own diplomatic skill; he had been beaten at his own arts, and his great treaty was absolutely useless.

[Sidenote: William's unpopularity.]

[Sidenote: New ministry. Dec. 1700.]

[Sidenote: New Parliament. Feb. 1701.]

[Sidenote: Succession Act.]