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.