The loan subscribed.
For once the Corporation found themselves left in the lurch. Long before the time named for the Common Council to consider Pitt's proposal the directors of the Bank of England had met, public subscriptions had been invited, and the whole loan of eighteen millions had been subscribed. Here is an account by a contemporary writer of the scene witnessed in the Bank on Thursday, the 1st December, and two following days[587];—"At ten o'clock this morning [1 Dec.] the parlour doors were opened, before which time the lobby was crowded. Numbers could not get near the books at all; while others, to testify their zeal, called to the persons at the books then signing to put down their names for them, as they were fearful of being shut out. At about twenty minutes past eleven the subscription was declared to be completely full, and hundreds in the room were reluctantly obliged to go away. By the post innumerable orders came from the country for subscriptions to be put down, scarcely one of which could be executed. And long after the subscription was closed persons continued coming, and were obliged to depart disappointed. It is a curious fact, and well worth stating, that the subscription completely filled in fifteen hours and twenty minutes: two hours on Thursday, six ditto on Friday, six ditto on Saturday and one ditto and twenty minutes on Monday—fifteen hours and twenty minutes." The directors of the Bank subscribed one million in their corporate capacity and £400,000 individually. The Common Council finding themselves left out in the cold, scarcely knew what to do. At first a somewhat pompous proposal was made for a committee to "prepare a plan for assisting the exigencies of the state in the present conjuncture." This, however, fell through, and the court finally contented itself with voting a sum of £100,000 towards the loan.[588]
The City and foreign subsidies, Dec., 1796.
Pitt's method of disposing of public money, when he got it, was not always approved by the citizens, more especially when it went to subsidise foreign mercenaries, without any authority from Parliament. Here, again, the livery and the Common Council entertained opposite views, and whilst the former called upon the city members to move or support a motion for censuring the ministry for sending money to the Emperor of Germany during the sitting of Parliament without the consent of Parliament,[589] the latter gave public testimony of their opinion that such payments as had been made to the Emperor had been beneficial to the country.[590]
Suspension of cash payments, 1797.
The constant drain of gold to the continent under Pitt's administration again began to affect the Bank of England as it had formerly done in 1793. On the previous occasion the difficulty had been got over by the issue of Exchequer Bills. Since that time the financial state of the country had been going from bad to worse. A run on country banks set in, resulting in demands being made on the Bank of England, which threatened to exhaust its reserve. At this crisis the Bank applied to the government. Pitt, with his usual promptitude, summoned a council, although it was Sunday (26 Feb., 1797), and a proclamation was issued suspending cash payments until Parliament should decide what should be done. The next day a meeting of the leading merchants of the city was held at the Mansion House under the presidency of the lord mayor. They at once grasped the situation, and unanimously consented to accept bank-notes as legal tender.[591] The Order in Council was subsequently approved by Parliament, and though intended only as a temporary expedient, the Act then passed continued in operation for twenty-two years, the resumption of cash payments not taking place until May, 1819.
Naval victory off Cape St. Vincent, 14 Feb., 1797.
At a time when England seemed on the verge of bankruptcy, she seemed also likely to lose her supremacy at sea. A plan was set on foot for a junction of the French and Spanish fleets, whereby an overwhelming force might be brought into the English Channel and an invasion rendered comparatively easy. Both the king and the citizens expressed the greatest confidence in the navy,[592] although there were not wanting signs of discontent among the seamen. Fortunately the Spanish fleet was intercepted by Sir John Jervis off Cape St. Vincent; the British sailors forgot their grievances in the presence of the enemy, and a signal victory was won (14 Feb.), for which Jervis received the thanks of the City and a sword of honour, whilst Nelson and others serving under him were voted the Freedom and gold boxes.[593]
Address of the livery, 23 March, 1797.
Although the Common Council—i.e., the City in its corporate capacity—were satisfied that the king had done all that was possible to procure an honourable peace, the livery were far from content. Again, they drew up an address to the king demanding the instant dismissal of his ministers, and once more they made an attempt to get their address received by the king on the throne. The king, however, stood out, and all that the livery could do was to pass resolutions in their Common Hall to the effect that they had always possessed the privilege they claimed, and that it had never been questioned "except under the corrupt and infamous administration" of those who were responsible for the American war.[594]