Part 8

Some important steps were however taken with regard to finance. There was still a tolerably unanimous feeling in favour of the war, and money had to be procured. In the arrangements for supplying the necessary money, the financial talents of Charles Montague, a young and rising member of the Whig party, first became conspicuous. Early known as a man of letters, and the author in company with Prior of "The Town and Country Mouse," he had been introduced to the King by his patron the Earl of Dorset, and, after strengthening his position by a marriage with the Dowager Countess of Manchester, had entered political life, and had been appointed one of the Lords of the Treasury in 1691. The financial measures recommended consisted of a reorganization of the Land Tax and of the first establishment of Government loans. The extraordinary expenses of Government had in early times been met by subsidies. These subsidies were levied both on moveables and on land, but were chiefly supported by an assessment on the land at the nominal rate of four shillings in the pound. Land had increased greatly in value as the demand for it increased, while gold and silver had fallen greatly in value after the discovery of America. In the assessment for subsidies neither of these circumstances was taken into consideration. The four shilling land tax had come in reality to be less than twopence in the pound. During the Commonwealth, and subsequently, a different method of taxation had been followed. The sum to be raised had been first determined, and each landowner had been called upon to pay a proportional share. In 1692 the Land Tax was reintroduced and reorganized. A new valuation was made, and upon this basis a tax was annually laid upon the land varying from a minimum of one shilling in time of peace to four shillings in times of emergency. Four shillings on this new valuation produced about £2,000,000. This sum fell considerably short of what was required. In addition, therefore, a loan, which is the origin of the National Debt, was raised. Money was plentiful in the country, and was so easily obtained, that bubble companies and stock-jobbing had become rife. Montague determined to turn some of this superfluous wealth to the use of the country, and to spread the payment of the debt over several generations. The plan at first adopted in raising these loans was not exactly the same as our present method of perpetual funding. The lenders were life annuitants, and the interest of the loan was secured on new duties on beer and other liquors. As each annuitant died his annuity was divided among the survivors, till their number was reduced to seven, who would at that time be naturally in receipt of an enormous interest on their original loan. After that, on the death of each of those seven, his annuity lapsed to Government. The whole debt would therefore be extinguished at the death of the longest-lived annuitant.

[Sidenote: Disastrous campaign. 1693.]

[Sidenote: Battle of Landen. July 19.]

The money thus collected was soon spent upon another disastrous campaign. Louis, in spite of the exhausted condition of his country, made extraordinary efforts in all directions. As far as the English only were concerned, the two great events of the campaign were the battle of Landen and the destruction of the Smyrna fleet. Louis, using his late conquest, Namur, for his point of departure, had formed two armies, one under Boufflers, the other under Luxemburg, and hoped to repeat the triumph of former years by the capture of either Liège or Brussels. But he found it was impossible to take either of those cities without fighting a pitched battle with William. In spite of the earnest request of his generals, he withdrew to Versailles, and removed the army of Boufflers to the Rhine. Though thus weakened, Luxemburg, by a threatened attack upon Liège, induced William to reduce his forces to save that town, and then falling upon him at Landen, defeated him after a battle, the stubbornest and bloodiest of the war. William's skill somewhat neutralized the effect of his defeat, and Charleroi was the only new acquisition of the French in the Low Countries.

[Sidenote: Loss of the Smyrna fleet. June.]

The loss of the Smyrna fleet made perhaps even greater impression upon the English than the defeat of Landen. The fleet, in which was accumulated more than a year's supply for the Eastern markets, and which numbered 400 ships, was to be convoyed in safety from London through the Straits of Gibraltar. After passing the Channel unopposed, the English admirals, supposing that the danger was over, withdrew towards England with their ships of war, and the trading fleet passed onward, guarded only by Rooke with about twenty men of war. Off St. Vincent it fell in with the whole combined navy of France, for the squadrons of Toulon and Brest had joined, and were lying in wait for their rich prey off the coast of Spain. The convoy was completely broken up, many vessels destroyed, while the others fled for safety in all directions. The loss of the English was estimated at many millions. The disaster would certainly have been much worse had not two Dutch ships which formed part of the convoy gallantly sacrificed themselves, and engaged no less than eighteen of the enemy's fleet.

In other parts of Europe the armies of France were equally successful. Catalonia had been invaded and Rosas taken. Catinat had defeated the Duke of Savoy in the great battle of Marsiglia (Oct. 3). The Turks had compelled the Germans to raise the siege of Belgrade. Yet, in spite of these successes, France was so worn out, that hints of a desire for peace began to reach the English King.

[Sidenote: William's difficulty with regard to his Parliament.]

[Sidenote: He forms a united Whig ministry.]

The possibility of being called upon to settle this great point, and the necessity of taking speedy advantage of his enemy's weakness, brought more clearly home to William the great difficulty which had beset his reign. For the position which was necessary to enable him to engage authoritatively in the affairs of Europe, for the money required for the pay of his army, and for the subsidies by which alone the allies were kept true to their engagements, he was dependent upon Parliament. For at the Revolution the Parliament had taken upon itself the supreme authority of the nation. Yet upon that Parliament he was unable to rely; for the representative body, though conscious of its power, had not yet learnt to use it advantageously. It was that worst of all forms of supreme power, a large disorganized assembly. Well aware that, both as head of a confederacy and as a general, freedom of action was necessary for him, William had kept as far as possible the management of foreign affairs in his own hands, and had sought to win the favour of all parties by a judicious impartiality. In the main he had been well supported in his foreign policy; but faction was so rife, the increasing divergence of opinion so great, and the capricious character of the Lower House so evident, that he could take no important step with confidence. He could not answer for a year's continuance of the war spirit, nor be certain that any steps he might take with regard to peace would be acknowledged even by his own ministers. It became necessary, if possible, to introduce some order and organization into this uncertain body. It would be better to risk a formal opposition of a certain number, and be sure of unanimity in his own administration, than to be at the caprice of a popular assembly. William therefore listened to the suggestions of Sunderland, and determined to place himself entirely in the hands of the Whig party, that party to which he owed his elevation to the throne, and which was pledged to the continuation of the war. During the next two years a change in ministry was gradually carried out, which ended by the establishment in 1696 of the first united ministry in English history. It was led by the chiefs of the Whig party, of which the leaders were Somers, Halifax, Russell and Wharton (known afterwards as the Junto).

[Sidenote: Party struggles.]

Parliament during these years was occupied in financial arrangements to meet the constant drain of the war, and in perpetual party struggles which terminated in the complete triumph of the Whigs, and in the substitution of the leaders of that party for their Tory rivals in all the chief offices of the administration. The first trial of strength between the parties arose upon the question of the naval administration of the former year. The whole nation smarted under the disasters which had followed on the great victory of La Hogue, which the Whigs had attributed not only to the maladministration of the two Tory admirals to whom the fleet had been intrusted, but also to treachery. It was impossible, they argued, that Louis could have denuded the Channel of his fleet, and allowed a junction of his admirals so far south as St. Vincent, unless he had had good reason to believe that the rich prey he desired would fall into his hands but weakly guarded. The Tories, who were unable to deny the maladministration, were anxious to exclude the word "treacherous" from the motion. The Whig party was however triumphant, and by a considerable majority the word was retained. But though the general assertion of treason was thus made, the Commons, as was not unusual, shrunk from fixing the treason upon any particular person, and each individual accused was acquitted by a small majority. Enough had been done, however, to give the King a fair opportunity of re-establishing Russell, the great enemy of Nottingham the Secretary, at the head of the Admiralty, and thus taking one step towards his Whig ministry. It was impossible for Nottingham to remain in office with Russell; he was consequently removed from the Secretaryship, and a fresh vacancy thus created, which, after some delay, caused by the conscientious scruples of Shrewsbury, who felt keenly the fault he had once committed in tampering with the Jacobites, was filled by that nobleman, one of the Whig chiefs. At the close of the session, therefore, William found himself with most of his chief officers belonging to the Whig party. Trenchard and Shrewsbury were Secretaries. Russell was the head of the Admiralty. Somers was Lord Keeper, and Montague Chancellor of the Exchequer. The only two Tories of importance left were Caermarthen, Lord President, and Godolphin, at the head of the Treasury. But the character of the latter minister led him to devote himself almost exclusively to his official business, of which he was master. Caermarthen was therefore, in fact, the only important element of discord in the administration.

[Sidenote: Establishment of the Bank of England.]

[Sidenote: The Triennial Act passed. Dec. 1694.]

Montague owed his elevation to the continued success of his financial plans. A fresh loan, known as the Lottery Loan--because though the whole rate of interest was low, in exceptional cases chosen by lottery it was very high--was successfully negotiated, and more important than this, the Bank of England was triumphantly established. Banking with private goldsmiths had come into fashion within the last two reigns, when the convenience of cheques in the place of ready-money payments had become obvious, while the advantage to the banker who had the use of the ready money was also plain. The fault of the system was its insecurity, which had been proved by the not unfrequent bankruptcy of one or other of the banking goldsmiths. A Scotchman of the name of Paterson had some years previously suggested the plan of a national bank, by which the Government should obtain some of the advantages of the banker, and the public, while gaining the convenience of cheques, should have a better security than private goldsmiths offered. This scheme Montague now adopted. He borrowed rather upwards of a million, and formed the lenders into a banking company, allowing them to treat the loan to Government as part of their capital, the interest of which, secured upon taxes, gave them the requisite supply of ready money. They were bound to pursue no other business except banking, yet, even with this restriction, so desirable did the plan seem, that it was at once triumphantly carried through. As a contingent advantage to Government, it is to be observed that the company, which included many of the chiefs of the moneyed interest, were pledged, for their own preservation, to support the present settlement of the throne. Their existence depended upon the regular payment of the interest upon their loan, which it was scarcely possible that the Jacobites, if successful, would pay. The importance of this point became very obvious afterwards, when, in more than one crisis, the credit of Government was saved by advances from the Bank. One other important measure was carried by this Parliament, and that also was in accordance with the principles of the Whigs. This was the Triennial Act, limiting the duration of Parliament to three years. The King, always jealous of his prerogative, had already once refused his assent to this Bill; but now, having placed himself in Whig hands, he withdrew his opposition, and the Bill was passed.

[Sidenote: Death of Queen Mary. Dec. 20.]

He was indeed in no position to enter into a struggle with his Parliament. A great blow was falling on him, which unhinged him more than any difficulties or defeats had yet done. This was the death of his wife, who had sickened of the smallpox, and, after a short illness, died on the 20th of December 1694. Her death caused universal sorrow in England and among the Protestant interest on the Continent, while it raised the hopes of James and his friends, who believed, not without a show of reason, that William succeeded in holding his place chiefly by means of the popularity of his Queen. Their hopes proved ill founded, for though at first the King seemed so broken-hearted that he declared he could never again lead an army, when once he had conquered his first grief, he resumed his old energy, and success such as he had never yet met with attended his efforts both at home and abroad.

[Sidenote: Expulsion of Trevor for venality, March 1695,]

Meanwhile in England there was no cessation in the strife of parties. The Whigs pursued their triumphant course, and combined to remove the last of their opponents from the Government. Trevor, a Tory, had in the early part of the reign been made Speaker of the House, chiefly for the purpose of carrying out Caermarthen's plans of corruption. Employed in corrupting others, it was not likely that he should be himself above corruption. Suspicions of his venality having arisen, the Whigs proceeded to examine the accounts of the City of London and of the East India Company, which, after much contest, had obtained a renewal of its charter. The Committee found that the City had paid Sir John Trevor in the preceding session 1000 guineas for forwarding a local Bill. The proof was too clear to be questioned. Trevor from the chair had to put the question whether he was guilty or not of high crime and misdemeanour, and to declare before all men that "the Ayes had it." He saved himself from the unutterable ignominy of announcing his own expulsion by feigning illness. A new Speaker, Foley, who did not belong clearly to either party, was elected in his place.

[Sidenote: and of Caermarthen. May.]

The accounts of the East India Company afforded the Whigs even greater triumph. Sir Thomas Cook, who was the head of the Company, confessed to having disbursed very large sums to secure the charter, but would give no particular accounts. The Commons, determined not to be thwarted, passed a Bill condemning him to refund all the money thus spent, in addition to a heavy fine, unless he made a full confession. In the Upper House the Bill was strongly opposed by Lord Caermarthen, now Duke of Leeds, who, laying his hand upon his heart, solemnly averred that he had no personal interest in the matter, and was moved by public considerations only. It was finally arranged that a joint Committee of the two Houses should inquire into the expenditure of the money that had been secretly spent, and that if Cook confessed he should be held guiltless. The joint Committee met; the King and the Duke of Portland, whose guilt in the matter had been suggested by the Tories, were proved perfectly innocent. But £5000 were traced, if not to the Duke of Leeds himself, at all events to his confidential man of business. Articles of impeachment were made out against him. They could not, however, be brought forward, because the man of business, who would have supplied necessary evidence, had made his escape to Holland. The Duke of Leeds continued to assert his innocence, but confessed that he had allowed money to be paid to his steward, considering this a very different thing from taking it himself. It also appeared that the money had been refunded the very morning of the first sitting of the joint Committee. Though foiled of their impeachment, the Whigs and the Commons had done their work. Leeds was obliged to retire from active life, and was never afterwards employed in the administration. The sole discordant member of the Government was thus got rid of.

[Sidenote: Success abroad. June 1694.]

Abroad likewise affairs took a turn more favourable to England and the Whigs. Just before the death of Mary the war had entered into a somewhat new phase. The navies of the two great powers had transferred the scene of operations to the Mediterranean. Thither Tourville had gone from Brest, and thither Russell, with the English fleet, had followed him. He had found means to keep the French fleet in harbour, and to do good service to the general cause by the relief of Barcelona, which was on the point of falling into the hands of the French.

[Sidenote: Treachery of Marlborough.]

The absence of the French fleet from Brest, which led to the supposition that the harbour must be unguarded, seemed to afford an opportunity for an attack in that quarter. An expedition was planned; the forces were intrusted to Talmash, while the Duke of Leeds' son Caermarthen commanded the fleet. It gave occasion for a new act of villany on the part of Marlborough; though the plan was kept a profound secret, he contrived to worm it out, and as had happened once or twice before in his career, he used his knowledge only to lay the details of the plan before James, and to secure the destruction of the English expedition. Vauban, the great French engineer, was sent down to re-fortify the place. Every vantage-ground was crowned with batteries, and into the trap thus laid for him Talmash had rushed headlong to meet his death, in company with 700 English soldiers (June 7, 1694). Marlborough's treachery in this instance was rather personal than political. Talmash alone of the English generals could in any way compete with him, and he knew that at his death or failure William, who it must be recollected did not know the full extent of his treachery, would be obliged to restore him to his command. His treacherous plan succeeded. He was again employed, though so thoroughly mistrusted, that William refused when he went abroad to give the regency to Anne, which he well knew would be but to give it to Marlborough. But the death of Mary, which occurred at the close of the year, while it excited the other Jacobites to action, for a time rendered Marlborough true to William; for it was followed by a reconciliation between the King and the Princess Anne, and Marlborough was now content to wait till the King's death for the completion of his designs. The more earnest Jacobites followed a different course, and it was in the midst of a conspiracy aimed against his life by Fenwick, Charnock, and Porter, that William set out for Flanders (May 1695).

[Sidenote: Campaign in Flanders. 1695.]

[Sidenote: Surrender of Namur. Aug. 26.]

In that country he had no longer the same formidable enemy with whom to contend. Luxemburg was dead, and his place was ill supplied by Villeroy and Louis' illegitimate son, the Duke of Maine, who was sent to learn the art of war under him. As Flanders was expected to be the great seat of war, the bulk of the French army was placed under Villeroy in that country. Boufflers, with 12,000 men, guarded the Sambre. William, however, had set his heart upon regaining Namur. Judicious feints deceived Villeroy as to his intentions, and suddenly his own army, that of the Brandenburgers and that of the Elector of Bavaria, marched straight against the city. Boufflers had just time to throw himself with his troops into the town. A body of troops under the Prince of Vaudemont had been left to watch Villeroy in Flanders. When that general advanced, the Prince could not hold his isolated position, and only succeeded in making good his retreat through the cowardice of the Duke of Maine. Villeroy advanced almost unopposed. He took the towns of Dixmuyde and Deynse, the garrisons of which, contrary to the terms of capitulation, were sent prisoners to France; and hoping by threatening the capital to draw William from Namur, he approached and ruthlessly and uselessly bombarded Brussels. But, undisturbed by Villeroy's manœuvres, William energetically pursued the siege. He was assisted by Cohorn, who had originally fortified the town, and had seen it taken by the skill of his great rival Vauban. Vauban had since much increased the fortifications, and Cohorn was eager to regain his honour by capturing it. At length, after some fierce assaults, in which the English under Lord Cutts, who for his bravery under fire got the nickname of "the Salamander," had greatly distinguished themselves, the town surrendered, but the castle still held out. It became evident to Villeroy that the actual presence of his army could alone raise the siege. Drawing troops from all the neighbouring garrisons, he approached with 80,000 men. But William now felt himself strong enough to give him battle without withdrawing from his operations. For three days the armies remained in presence, and William lay expecting the attack, but Villeroy judged his position too strong to be taken, and withdrew. The fate of the fortress was now sealed, but Boufflers thought that his honour demanded that he should stand an assault; nor was it till the English had succeeded at the cost of 2000 men in making a lodgment in the place that he consented to treat, and for the first time in history a French marshal surrendered a fortress to a victorious enemy. Having gone through the ceremony of surrender, Boufflers was much surprised and enraged at being arrested on his road to France. His angry exclamations against the breach of the terms of capitulation were met by the reply, that William was only following the example of Louis with regard to the garrisons of Dixmuyde and Deynse. He was kept in honourable imprisonment till those garrisons were restored.

[Sidenote: William's triumphant return. Oct. 10.]

[Sidenote: New Whig Parliament. Nov. 22.]