[An interval of two years occurs in the Journal, during which Mr. Greville wrote nothing.]
CHAPTER III.
The Panic of 1825 — Death of Emperor Alexander — The Duke of Wellington’s Embassy to St. Petersburg — Robinson Chancellor of the Exchequer — Small Notes Bill — Death of Arthur de Ros — George III. and Lord Bute — Illness and Death of the Duke of York — His Funeral — Lord Liverpool struck with Paralysis — Rundell’s Fortune and Will — Copley and Philpots — The Cottage — Formation of Mr. Canning’s Administration — Secession of the Tories — The Whigs join him — Dinner at the Royal Lodge — Difficulties of Canning’s Government — Duke of Wellington visits the King — Canning’s Death — Anecdotes of Mr. Canning — Recognition of South American States — His Industry — The Duke of Wellington on Canning — Lord Goderich’s Administration formed — The Difficulty about Herries — Position of the Whigs — The King’s letter to Herries — Peel and George IV. — Interview of Lord Lansdowne with the King — Weakness of the Government — First Resignation of Lord Goderich — Lord Harrowby declines the Premiership — Lord Goderich returns — Brougham and Rogers — Conversation and Character of Brougham — Lord Goderich’s Ministry dissolved — Cause of its Dissolution — Hostility of Herries — Position of Huskisson and his Friends — Herries and Huskisson both join the New Cabinet.
1826.
February 12th, 1826
The last three months have been remarkable for the panic in the money market, which lasted for a week or ten days—that is, was at its height for that time. The causes of it had been brewing for some months before, and he must be a sanguine and sagacious politician who shall predict the termination of its effects. There is now no panic, but the greatest alarm, and every prospect of great distress, and long continuation of it. The state of the City, and the terror of all the bankers and merchants, as well as of all owners of property, is not to be conceived but by those who witnessed it. This critical period drew forth many examples of great and confiding liberality, as well as some of a very opposite character. Men of great wealth and parsimonious habits came and placed their whole fortunes at the disposal of their bankers in order to support their credit. For many days the evil continued to augment so rapidly, and the demands upon the Bank were so great and increasing; that a Bank restriction was expected by everyone. So determined, however, were Ministers against this measure, that rather than yield to it they suffered the Bank to run the greatest risk of stopping; for on the evening of the day on which the alarm was at its worst there were only 8,000 sovereigns left in the till.[1] The next day gold was poured in, and from that time things got better.
[1] [Mr. Baring (Lord Ashburton) stated in his pamphlet on this crisis, ‘The gold of the Bank was drained to within a very few thousand pounds, for although the public returns showed a result rather less scandalous, a certain Saturday night closed with nothing worth mentioning. It was then that the Bank applied to Lord Liverpool for an Order in Council to suspend cash payment. A conference took place between Lord Liverpool, Mr. Huskisson, the governor of the Bank, and Mr. Baring. The suspension of cash payments was happily averted, chiefly as it was said by the accidental discovery of a box of one-pound Bank of England notes, to the amount of a million and a half, which had never been issued, and which the public were content to receive.’ Mr. Tooke, however, states in his ‘History of Prices’ (Continuation, vol. iv. p. 342) that the lowest amount of the banking treasure was on the 24th of December, 1825: Coin, 426,000ℓ.; bullion, 601,000ℓ.: in all, 1,027,000ℓ. The passage in the text refers of course to the banking department only.]
In the midst of all this the Emperor Alexander died, and after a short period of doubt concerning his successor it was found that Nicholas was to mount the throne. The first act of the Russian Government was to communicate to ours their resolution no longer to delay a recognition of the independence of Greece, and their determination to support that measure if necessary by force of arms. They invited us to co-operate in this object, but intimated that if we were not disposed to join them they should undertake it alone. The Duke of Wellington is gone to Russia, ostensibly to compliment the new Emperor, but really to concert measures with the Russian Ministry for carrying this measure into effect; and it is remarkable that the Duke, upon taking leave of his friends and family to set out on this journey, FINANCIAL DIFFICULTIES. was deeply affected, as if he had some presentiment that he should never return. Alava told me that he had frequently taken leave of him, when both expected that they should never meet again, yet neither upon that occasion nor upon any other in the course of the seventeen years that he has known him did he ever see him so moved. Lady Burghersh said that when he took leave of her the tears ran down his cheeks; he was also deeply affected when he parted from his mother.