I have nothing decisive to say to you on the subject which we discussed so much at Stowe, except that the particular arrangement, which we agreed to be in so many respects objectionable, certainly will not take place. My opinion is, that it will end in my remaining as I am till the other event happens, when it will be time enough to decide the question, which will then occur, either of my present situation continuing, or of the arrangement which you suggested instead of it, which I mentioned to Pitt, and which he seemed in many respects to like. The negotiation with respect to that other event has not yet been opened, but will immediately be so. The period must depend upon that person's wishes as well as mine; but mine, as far as they will have weight, are for the time which you seemed to prefer.
I do not know whether you will understand my hieroglyphics, but I hope to explain them to you some time next week, as Lord Harcourt and myself have, I think, nearly settled to take our holidays then.
We determined nothing about the Wardrobe Keeper. Lord Grimstone has been written to about Hepburne's arrangement, but we have no answer yet. This need not, however, delay any decision which you may take about the other, which I am very anxious to settle before the clannism takes place,
Adieu, my dear brother,
Ever most affectionately yours,
W. W. G.
1787.
The Dawn of Free Trade—The Assembly of Notables—Affairs of Holland—Arthur Wellesley—The Marquis of Buckingham Assumes the Government of Ireland for the Second Time.
Looking back upon the acts of past administrations, with a view to the influence they exercised over the policy of their successors to the present time, perhaps the most important measure introduced at this period by Mr. Pitt was a commercial treaty with France, which may be regarded as the first recognition by an English Minister of the principles of Free Trade. Mr. Fox maintained that France was the natural enemy of England, and that it was useless to attempt to veil the rivalry of the two countries under commercial regulations. Mr. Pitt, on the other hand, urged that it was their mutual interest to liberate their commerce; and that if France obtained a market by this treaty of eight millions of people for her wines and other productions, England profited still more largely by gaining a market for her manufactures of twenty-four millions.
The general principle of this treaty was to admit a mutual exportation and importation of commodities, at a low ad valorem duty. The Opposition made great head against it in the House of Commons, but it was finally carried by a majority of 76. Curiously enough, the treaty was negotiated by Mr. Eden, who had held the office of Vice-Treasurer of Ireland under the Coalition, and who was the first person to break away from that heterogeneous confederacy, and ally himself with Mr. Pitt. His defection was the more memorable from the fact, that the Coalition is said to have originated with him; at all events, he divides the credit of the project with Mr. Burke. Distinguished by his zeal and activity, Mr. Eden was soon afterwards raised to the peerage, under the title of Baron Auckland.
While this reciprocity treaty was in progress, the finances of France were reduced to such a state of derangement by a system of corruption and profligate expenditure, as to call for some strong and universal measure of redemption. The famous Convention of Notables was the remedial project suggested by that able but speculative financier, M. de Calonne, who had succeeded M. Necker as Minister of Finance. This assembly, by royal authority, of all the considerable persons in the kingdom, excited some curiosity in England. What was thought of it in the ministerial circles may be gathered from a passage in a letter from Mr. W. W. Grenville to Lord Buckingham, dated the 8th of January.