Committees of both houses of parliament reported that the bank was in a thoroughly stable condition, and, after much debating, during which Fox asserted that Pitt deserved impeachment for defrauding the public creditor, a bill was passed on May 3 prohibiting the bank from issuing cash, except in sums below £1, until six months after the end of the war. Cash payments were not resumed until 1819. A fair, though constantly decreasing amount of gold remained in circulation for some years, and was supplemented by the issue of one pound notes. The bank was moderate in its issues, and, except in 1800, there was no appreciable difference between the value of its paper and gold until 1808. The government was undoubtedly justified in saving the bank from the effects of panic. Whether the suspension should have been continued after the restoration of public confidence is another matter. It was continued chiefly because it enabled the bank to make large advances to government without incurring a drain of bullion. Currency was at once expanded, and Pitt obtained a new loan of £14,500,000; it was raised mainly in the 3 per cents., and created a debt of £175 for each £100 cash. Pitt therefore paid, including the provision for long annuity, at the rate of £6 7s. per cent. The imperial loan of £1,620,000 was raised on even more onerous terms.
BATTLE OF CAPE ST. VINCENT.
In the midst of anxiety and financial depression England was cheered by a great naval victory. France called on Spain to form a junction of fleets. It was the old idea of 1779 when the two Bourbon powers were to destroy the channel fleet and lay England open to invasion. The Spanish fleet, twenty-seven ships of the line, under Admiral de Córdova, sailed from Carthagena for Cadiz on February 1. Jervis was then cruising off Cape St. Vincent, and before dawn on the 14th he received tidings that the Spaniards were near. He had only fifteen ships of the line, but his squadron was in splendid order, and among its commanders were Commodore Nelson and Captains Collingwood, Troubridge, and Saumarez. The Spaniards were eager to get to port, and ten of their ships were far ahead of the rest on the leeward side. He made for the gap and attacked the main body of seventeen ships, keeping the nine lee ships (one had got away) in check meanwhile. After some cannonading and manœuvring the Spaniards attempted to join their lee division. They were stopped by Nelson who, on his own responsibility, wore his ship, the Captain (74), took her out of the line, crossed the bows of five Spaniards, and promptly supported by Troubridge in the Culloden (74), engaged the gigantic Spanish flagship, the Santisima Trinidad (130), and two others. His daring manœuvre threw the enemy into confusion and enabled the British to come to close quarters.
During the fight the Captain was crippled, "her wheel and foretopmast gone and not a sail or rope left". She was engaged by several of the enemy, particularly by the San Nicolas (80) and the San Josef (112), whose mizzen-mast she had shot away. Collingwood pushed his ship, the Excellent (74), between her and the San Nicolas, gave the Spaniard a broadside within pistol shot, and passed on. The San Nicolas "luffing and the San Josef's mizzen-mast being gone, they fell on board of each other". Nelson boarded the San Nicolas and captured her. From her he and his men boarded the San Josef, which also surrendered, and on her deck he received the swords of the Spanish officers. Four of the enemy's ships were taken and the Santisima Trinidad surrendered but was not secured.[269] The fight lasted until evening, and though the Spaniards had ten ships which had not been closely engaged and eight more uncrippled, they drew off in the night. They showed an utter lack of seamanship in the action. The number of their fleet, the size and quality of their ships, and the weight of metal they carried place this battle of St. Valentine's Day, or Cape St. Vincent, among the splendid victories of the British navy. Its moral effect was excellent; it helped the nation to pass through the banking crisis with calmness, and raised its spirits. The long-standing belief that Spain was a first-rate maritime power was destroyed at last. Jervis was created Earl of St. Vincent and received a pension of £3,000 a year, and Nelson, already gazetted rear-admiral, a pension of £1,000 and the order of the Bath. About the same time Admiral Harvey, commanding in the Leeward islands, and Sir Ralph Abercromby captured Trinidad from the Spaniards, but failed in an attack on Puerto-rico.
It was well that England should be encouraged, for darker days were at hand. The Austrian attempt in Italy in the autumn of 1796 ended in disaster. Although Alvinzi beat the French at Caldiero on November 12, he was no match for Bonaparte in generalship, and the Austrians were defeated in a three days' battle at Arcola on the 15th-17th. A last attempt to save Mantua was foiled by Bonaparte's victory at Rivoli on January 14, and on February 2 the great fortress was surrendered by Wurmser. Bonaparte led his victorious army into Carinthia, overcame the Austrian resistance with the help of Masséna and Joubert, and advanced to Leoben about 100 miles from Vienna. The death of Catherine had deprived the emperor of his hopes of help from Russia, and on April 18 preliminaries of peace were signed at Leoben. Francis renounced his rights over the Netherlands and agreed to a congress for the conclusion of a peace with the empire. By secret articles he promised to surrender his territories west of the Oglio and to accept in exchange the terra firma of Venice from the Oglio eastward, with Venetian Dalmatia and Istria. Lombardy and the rest of the Venetian terra firma were to be constituted an independent republic by France, and Venice was to be indemnified by the Legations, Romagna, Ferrara, and Bologna. The emperor negotiated apart from Great Britain and without sending any notice of his intentions to London,[270] and England suddenly found herself deprived of her one efficient ally.
DISCONTENT IN THE NAVY.
Her enemies were preparing to close in upon her. Three fleets threatened her with invasion. A French fleet lay at Brest, inadequately watched by Bridport; a Spanish fleet at Cadiz was closely blockaded by Jervis; and Duncan with the North sea fleet kept watch for a fleet which the Dutch at the bidding of France were fitting out in the Texel. The safety of the realm depended on the navy, and the navy mutinied. Both soldiers and sailors had just grievances, specially as regards their pay. Seditious pamphlets were distributed among the soldiers by the democratic societies, and, it was believed, among the sailors also.[271] The discontent in the army, which for a time appeared likely to have serious consequences, was allayed through the influence of the Duke of York. The pay of privates of the line was raised from 8¼d. to 1s. a day, though a deduction on account of the existing high price of provisions reduced the actual increase to 2d.; and other advantages were granted.[272]
The sailors had no royal duke to speak for them. Mutinies had broken out sporadically in the navy during the American war and temporary concessions had been made, but there was no general removal of grievances. The pay remained as it was fixed in the reign of Charles II. at 22s. 6d. a month (of twenty-eight days) for able seamen and 19s. for ordinary seamen, though the cost of living had risen, the men said, 30 per cent., so that they could not provide for their families. The system on which they were paid was unfair to them; a deduction of two ounces in the pound was made in their rations by the admiralty to balance waste of stores; the medical service was disgracefully bad, and they complained bitterly of the shameful practice of not providing them with fresh vegetables as a protection from scurvy when in English ports. Punishments were sometimes frightfully severe and a tyrannical captain could make a ship a floating hell. A mutiny, only remotely connected with the general movement, was provoked on the Hermione (32) on the Jamaica station by the insane cruelty of Pigot, the captain; the crew murdered him and the other officers, and delivered the ship to the Spaniards from whom it was afterwards retaken. Owing to the large demand for men in war time many crews contained a large number of bad characters, criminals whose sentences were remitted on condition of entering the navy, and such like, and on some ships there were many Irishmen who had imbibed disaffection on shore. Such men would naturally be inclined to mutiny. A ship's crew, however, took its tone from the able seamen, the A.B.'s, from whom the petty officers were chosen. At that time they were often not more than a fourth of the crew, and unfortunately they had special grievances. They were skilled men, and might have been mates with good pay on a merchant ship. They were forced to serve in the navy by impressment, and when in port were refused leave to visit their families for fear they should desert. In the winter of 1796-97 the able seamen in the channel fleet seem to have combined to obtain a redress of grievances. Anonymous petitions were sent to Lord Howe, who forwarded them to the admiralty where they were disregarded.
MUTINY IN THE NAVY.
On April 15 the fleet, which was then at Spithead, was ordered to put to sea. The crews instead of weighing anchor manned the yards, cheered, and hoisted the red flag, the usual signal for battle. They were joined by the marines. No personal disrespect was shown to the officers, but the ships were taken out of their command. The admiralty board went down to Portsmouth and held an interview with the delegates from the ships, who presented a list of their demands. The commissioners haggled; the men stood firm, and further demanded that officers accused of tyranny should be dismissed their ships. On the 25th the commissioners gave way on all points; the pay of able seamen was to be the same as that of privates in the army, though without deductions, 1s. a day, or a rise of 5s. 6d. a month; ordinary seamen were to receive a rise of 4s. 6d.; their other grievances were to be redressed; and a promise was given that the fleet should not be sent to sea until the increase of pay had been voted by the house of commons, and the king's pardon had been proclaimed. Various hindrances, which might perhaps have been overcome if the government had appreciated the need of promptitude, delayed the application to parliament. Days passed by; the sailors heard nothing of a bill for the rise in their wages or of a proclamation of pardon, and an ill-judged order sent by the admiralty to the captains with reference to stores and to mutinous conduct roused their suspicions. They believed that they had been cajoled. Hitherto their conduct had been as blameless as the nature of the case allowed. It was so no longer. Two of the ships remained at Spithead; the rest had gone to St. Helen's. On May 7 all the crews again mutinied and most of the officers were sent ashore. A struggle took place on board the London; a mutineer was shot dead, and a midshipman and a marine officer were wounded. Pitt proposed a grant for the increase of pay on the 8th, and, as discussion might be mischievous, asked for a silent vote. To their shame, Fox and his friends used this crisis as an opportunity for a violent party attack on the government.[273] The money was voted, and on the 10th Howe, the sailors' favourite "Black Dick," went down to the fleet with the vote and the king's proclamation. The men were pacified; more than 100 officers to whom they objected were removed from the ships; discipline was restored, and the fleet put to sea.