Various - Blackwood's Edinburgh Magazine, Volume 63, No. 392, June, 1848

This obstinate resistance of government to the wishes, and declared insensibility to the wants and necessities of the country, is the more remarkable that it exhibits so striking a contrast to the paternal spirit by which government was formerly actuated. Suffering, never indeed approaching in extent and intensity to that which now afflicts the nation, but still sufficiently distressing, has been often experienced in former times; but on none of these did the government hesitate to come forward with a large grant, founded on the public credit, to alleviate the general calamity, and always with the very best effects. In 1793, in consequence of the breaking out of the war, and the general hoarding which took place in France during the terrors of the Revolution, a great export of gold from the British islands to the Continent took place; but Mr Pitt at once came forward with a grant of £5,000,000 to aid the commercial interest; and so rapidly did this well-timed advance restore credit, that a small part only of this large sum was taken up, and very little of it was lost to the nation. In February 1797, a similar cause produced that great run on the bank which brought that establishment to the verge of ruin; but the same minister instantly introduced the suspension of cash payments, which at once restored credit, revived industry, and carried the nation in a triumphant manner through all the dangers and crises of the war. In 1799 and 1800, two successive bad harvests brought the nation to the verge of starvation; but government interposed by various sumptuary laws regarding food, stopped distillation from grain, and themselves imported immense quantities of Indian corn for the use of the people. In 1811, a similar calamity ensued from the effects of Napoleon's continental blockade, and the American Non-intercourse Act; but government again interposed with an issue of exchequer bills, and confidence was restored, and with it industry and commerce revived.

In 1826 very great depression existed in all branches of industry, in consequence of the dreadful monetary crisis of December 1825; but government stopped the crash, as Lord Ashburton has told us, by issuing £2,000,000 of old and forgotten notes from the Bank of England, and then alleviated the distress by a copious issue of exchequer bills to aid the commercial interest, which soon brought the nation out of its difficulties. But since the government has been popularised by the revolution of 1832, nothing of the kind has been done. The long-protracted distress from 1838 to 1841, and the dreadful suffering of 1847-8, have been alike unable to extort for British suffering one farthing in aid of the national industry from the Chancellor of the Exchequer. The principle laissez faire has prevailed alike over the strongest claims of justice and the most piteous tales of suffering. Government seems resolved that the nation shall drain the lees of free-trade to the dregs, and taste it in all its bitterness. It is no consolation to suffering British industry to see that £10,000,000 was in one year voted to suffering Irish idleness, and £20,000,000 in another to the grand step in West Indian ruin. The people see that the first was yielded to terror, the last to fanaticism; and the melancholy conviction has forced itself on every mind that government now yield to nothing but the strongest pressure from without; and that the doors of the Treasury will be opened only to the fierce demand of threatened high treason, or the reverberated echoes of wide-spread delusion.

Ministers were aware of all this; and they knew also that, on the first declaration of war with France or any foreign power, they would at once raise a loan or issue exchequer bills to the extent of at least £20,000,000 sterling. Here is an enemy worse than the French, or the French and the Repealers united – want, fever, famine, disaffection, despair, actually within our bosom, and consuming the very vitals of the state! A word from the Chancellor of the Exchequer would at once arrest the misery, dispel the sedition, restore bread to millions, revive loyalty in a wasted and perishing state. 6 6 The inquest set on foot by the magistrates of Glasgow in support of their deputation, showed that six railway companies alone connected with that city could, if aided by government, employ for a year workmen as follows: — Embracing, with their dependants, at least 120,000 persons, besides mechanics and others indirectly benefited. Why, then, is it not instantly done? why does not government eagerly seize so glorious an opportunity of healing the wounds of the suffering people, and extinguishing, by deeds of beneficence, the demons of discord and disaffection in the realm? Because it would interfere with a principle ; it would intercept the free employment of wealth; it might alarm capitalists, lower the value of Exchequer bills, and for a week or two depress the funds a-half, or perhaps one per cent. It would be a substantial extension of the currency , and that would imply an avowal that it had formerly been unduly contracted; it might be quoted against ministers as a tardy and reluctant admission of the error of their former monetary policy in the parliamentary committee, or in the House of Commons! It is for such wretched considerations as these that relief is refused, and want, wretchedness, and treason prolonged throughout the kingdom. Were the subject not so serious, and even terrible in all its bearings, their conduct would remind us of the well-known reasons assigned by Dr Sangrado to Gil Blas, for continuing, to the evident destruction of his patients, the system of hot water and bleeding.

"'Sir,' said I one evening to Dr Sangrado, 'I call heaven to witness, that I exactly follow out your method, nevertheless all my patients slip out of my hands to the other world: one would think they take a pleasure in dying, to discredit our system … If you would follow my advice,' replied I, 'we would change our system of practice.' 'I would willingly,' replied he, 'make the trial, if it led to no other consequences than those you have mentioned; but I have published a book in which I extol the frequent use of the lancet and hot water; do you wish me to decry my own work? ' 'Oh! you are right,' replied I, 'you must never think of giving such a triumph to your enemies: they would say you have at length confessed your error; that would ruin your reputation: perish rather the noblesse, the clergy, and the people . Let us go on as we have begun.' We continued accordingly our system, and went on with such expedition, that in six weeks we had occasioned as many funerals as the siege of Troy." 7 7 Gil Blas , lib. 2, c. 5.

We speak advisedly, and after a full observation of its effects, when we say, that the great majority of the unhappy persons who, within the last year, have been sent into the Gazette, owe their ruin as completely and exclusively to the measures of government, as Dr Sangrado's patients did their death to the copious bleedings and warm water draughts which he prescribed to them. Only think what our rulers have done, and then say whether any save colossal private fortunes, engaged in mercantile adventures, could withstand the effects of their measures.

I. The government, in the first place, by the bill of 1819, compelled the Bank of England to pay its notes in gold; by the act of 1826 prohibited the issuing of any notes below five pounds; and by the act of 1844 in England, and 1845 in Scotland and Ireland, restricted the notes issuable on securities, in the whole empire, to £32,000,000, declaring that, for every note beyond that limit issued by any bank, sovereigns to an equal amount must be stored up in the vaults of the issuer. In a word, they made the whole circulation beyond £32,000,000 a metallic currency. At the same time, they provided that, for every five sovereigns beyond a certain limit withdrawn from the Bank of England, a five-pound note should be withdrawn by that establishment from the circulation.