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On hearing this, Burgoyne dispatched Colonel Baum with two pieces of artillery and eight hundred mendismounted German dragoons and British marksmen. They were to surprise Bennington, a place about twenty miles to the east of the Hudson, where the Americans had collected their stores from New England, and, having secured these, to return and carry them to St. Leger. Baum, however, found himself surrounded by Generals Starke and Warner at St. Corick's Mill, on Walloon Creek, six miles from Bennington, before help came up. For two hours a fierce attack was kept up on Baum's entrenchments on all sides by the Americans with muskets and rifles. Baum made a most gallant defence, and three times drove them from some high ground which they occupied above his camp. At last he was picked off by a rifleman and fell mortally wounded. His German troops retreated into the woods, in the direction of Fort Edward, and were there met by Breyman, who was slowly advancing with reinforcements. He reorganised the fugitives, and commenced his retreat, hotly pursued by Starke and Warner; he made his way back to Burgoyne, but not until he had fired nearly his last cartridge.

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It is impossible to conceive the extent of suffering and desolation inflicted upon society, almost every family being involved, more or less, in the general calamity. Flourishing firms were bankrupt, opulent merchants impoverished, the masses of working people suddenly thrown out of employment, and reduced to destitution; and all from causes with which the majority had nothing to docauses that could have been prevented by a proper monetary system. If Bank of England notes had been a legal tender, to all intents and purposes supplying the place of gold as currency; if these notes had been supplied to the country banks in any quantities they required, ample security being taken to have assets equal to their respective issues, then the currency would have had an elastic, self-adjusting power, expanding or contracting according to the requirements of commerce. Inordinate speculation would not have been stimulated by a reckless system of credit, and business would have been conducted in a moderate and judicious manner, instead of rushing on at a high pressure that rendered a crash inevitable. The Government, after anxious and repeated deliberations, supplied a remedy on this principle. They determined to issue one-pound and two-pound notes of the Bank of England, for country circulation, to any amount required. In the meantime the Mint was set to work with all its resources in the coining of sovereigns[244], which, for the course of a week, were thrown off at the rate of 150,000 a day. The notes could not be manufactured fast enough to meet the enormous demand for carrying on the business of the country. In this dilemma the Bank was relieved by a most fortunate discoverya box containing 700,000, in one- and two-pound notes that had been retired, but which were at once put into circulation. The people having thus got notes with Government security, the panic subsided, and the demand for gold gradually ceased. The restoration of confidence was aided by resolutions passed at a meeting of bankers and merchants in the City of London, declaring that the unprecedented embarrassments and difficulties under which the circulation of the country laboured were mainly to be ascribed to a general panic, for which there were no reasonable grounds; that they had the fullest confidence in the means and substance of the banking establishments of the capital and the country; that returning confidence would remove all the symptoms of distress caused by the alarms of the timid, so fatal to those who were forced to sacrifice their property to meet unexpected demands. The new measures so promptly adopted and so vigorously carried into effect, raised the circulation of the Bank of England notes in three weeks from 17,477,290 to 25,611,800. Thus the regular and healthful action of the monetary system was restored by an adequate circulation of paper money, on Government security, without specie to sustain it. There were at the time of the crash 770 country bankers; 63 stopped payment, 23 of them having subsequently resumed business, and paid twenty shillings in the pound; and even those that were not able to resume, paid an average of seventeen shillings and sixpence in the pound. It was estimated that the total loss to the country by this panic was one hundred million pounds.
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THREE:The Government determined to make the most formidable preparations for the preservation of the peace, and for putting down a riot, should it occur. Troops were seen directing their march from all quarters to the metropolis, and there was not a village in the vicinity which did not display the plumed helmet. George IV., always excessively fond of show and pomp, was resolved that the ceremonial of his coronation should outshine anything in history. The nation entered into the spirit of the occasion, and the metropolis was full of excitement. As early as one o'clock on the morning of the 19th of July, Westminster, the scene of this magnificent pageant, presented a dazzling spectacle. Even at that early hour, those who were fortunate enough to obtain places were proceeding to occupy them. From Charing Cross two streams of carriages extended, one to the Abbey and the other to Westminster Hall. The streets were crowded with foot passengers eager to secure seats on the platforms erected along the way, or some standing-place. All distinctions of rank were lost in the throng of eager expectants; judges, bishops, peers, commanders, wealthy citizens, richly dressed ladies, all mingled in the moving masses that converged towards the great centre of attraction.
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THREE:On the 27th of November, only two days after the receipt of the news of the surrender of Lord Cornwallis, Parliament met. The king adverted to the unhappy event, but still declared that he should be betraying his trust, as sovereign of a free people, if he did not refuse to give up the contest; that he still trusted in Divine Providence, and he called for fresh, animated, and united exertions. He turned with more satisfaction to the successes in the East Indies, and the safe arrival of our principal mercantile fleets. In the Lords, the Earl of Shelburne attacked the Address, supported by the Duke of Richmond and the Lords Camden and Rockingham; but the most tempestuous burst of indignant eloquence from the Opposition took place in the Commons. Fox asserted that he had listened to the Address with horror and amazement. He declared himself confounded at the hardihood of Ministers, after such a consummation of their imbecile management, who dared to look the House of Commons in the face. He would not say that they were paid by France, for it was not possible for him to prove the fact; but, if they were not, he avowed that they deserved to be, for they had served the French monarch more faithfully and successfully than ever Ministers served a master. He especially singled out Lord Sandwich for reprobation, as the author of the wretched condition of our fleets, which were inferior in number of ships and their appointments to those of the enemy all over the globe. He called on the House to insist on the total and immediate change of Ministers, and urged the adoption of measures which should, if possible, repair the incalculable injuries they had inflicted on the nation. The Ministers, however, had strength enough to carry the Address by two hundred and eighteen votes against one hundred and twenty-nine; but the debate was resumed on the Address being reported, and then William Pitt delivered a most scathing speech, declaring that so far from our being warranted in pressing this ruinous war, he was satisfied that, if he went from one end of the Treasury bench to the other, such was the condition of the Ministry, he should find that there was not one man who could trust his neighbour; and the truth of this was becoming strikingly evident. Dundas, the Lord Advocate, hitherto one of the staunchest supporters of Lord North, spoke now as in astonishment at the language of the Ministers, declaring that some of them in Council clearly did not give their honest opinions. There were other like symptoms of defection; the sensitive placemen saw that the end of the North Administration was at hand. Lord North, perceiving the ground failing beneath him, lowered his tone, and, on Sir James Lowther, seconded by Mr. Powys, proposing a resolution that the war against America had been an utter failure, he explained that he did not advocate, in future, a continental warfare there, a marching of troops through the provinces, from north to south, but only the retention of ports on the coast, for the protection of our fleets in those seas, and the repulse of the French and Spaniards. Parliament was adjourned on the 20th of December till the 21st of January, and thus closed the year 1781. Lorem ipsum dolor sit amet, consectetur adipisicing elit.
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FORE:[See larger version]Taking this view of his Continental neighbours, George was driven to the conclusion that his only safety lay in firmly engaging France to relinquish the Pretender. The means of the attainment of this desirable object lay in the peculiar position of the Regent, who was intent on his personal aims. So long as the chances of the Pretender appeared tolerable, the Regent had avoided the overtures on this subject; but the failure of the expedition to the Highlands had inclined him to give up the Pretender, and he now sent the Abb Dubois to Hanover to treat upon the subject. He was willing also to destroy the works at Mardyk as the price of peace with England. The preliminaries were concluded, and the Dutch included in them; but the Treaty was not ratified till January, 1717.
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As for the queen, she was a far superior person. She had been well brought up on the second marriage of her mother after the death of her father, by the Queen of Prussia, Sophia Charlotte, the sister of George I. She had been handsome till she grew corpulent and suffered from the smallpox, and still she was much admired for her impressive countenance, her fine voice, penetrating eye, and the grace and sweetness of her manner. She was still more admired for the striking contrast which she presented to her husband in her love of literature and literary men, extending her interest and inquiries into philosophy, theology, and metaphysics. Those who are disposed to ridicule her pretence to such knowledge admit that she was equally distinguished by prudence and[58] good sense. She combined in her manners royal dignity and unassuming grace, and was more popular with the nation than any one of the Hanover family had ever yet been. She delighted to engage theologians in discussing knotty points of doctrine, and in perplexing them with questions on the various articles of faith in different churches, and corresponded with them on these subjects through her bedchamber woman, Mrs. Clayton, afterwards Lady Sundon. But the best proofs of Queen Caroline's superiority were shown in her pure moral character, which was free from the slightest stain, and in her quick discernment and substantial promotion of the most able men in the Church.[333]At the end of the reign of Anne the shipping employed in commerce amounted to 448,000 tons, of which only 26,573 tons were foreign; so that the English mercantile shipping had increased, in little more than twelve years, 127,800 tons. At the end of the reign of George I. our mercantile shipping was only 456,000 tons, the foreign being 23,651 tons; so that the increase for the time was but slight. The royal navy had greatly decreased under George I. At the end of the reign of George II., the total amount of our commercial shipping was 573,978 tons, including 112,737 foreign. Thus, whilst the total shipping at the commencement of this period (in 1688) was only 244,788 tons, at the end of it (in 1760) the total was 573,978 tons, or a nett increase, in seventy-two years, of 329,190 tons: the increase being much larger than the total amount of tonnage possessed at the commencement of the period, the amount of foreign shipping remaining very nearly the samein fact, only 12,000 tons more. The royal navy, which, at the commencement of the period, was reckoned at 101,892 tons, at the end of it was 321,104 tons, showing an increase of 219,212 tons; and, at the rate of men employed at the commencement, the number now employed in both our commercial and our national navy could not be fewer than 160,000 men.[See larger version]Another successful expedition this year was one against the Cape of Good Hope. This settlement, so desirable for Britain, with her Indian possessions, had been yielded up by the Addington Administration, at the Peace of Amiens, most[522] imprudently. A body of five thousand men was dispatched for its recovery, under Sir David Baird, in a fleet commanded by Sir Home Popham. They arrived in January, and the Dutch soldiers fled at the first attack. Retiring into the interior, General Beresford was dispatched after them, whereupon they surrendered, on condition that they should be sent to Holland without being deemed prisoners of war.These resolutions being carried, it then became a question whether the prince would accept this restricted regency. Burke had warned the House that perhaps, after all, the prince would not accept such a shadow of his own natural powers, and he warned them likewise that the British Parliament might find itself electing the prince as regent, whilst the Irish Parliament was nominating him as by right. But it would appear that the Whigs were so anxious to seize on office, even under such cramping restrictions, and to see Pitt dethroned, that they advised the prince to accept. A joint committee of Lords and Commons waited on him on the 30th of January, the anniversary of the execution of Charles I., and another joint-committee the same day waited on the queen, and the next day their answers, accepting their respective offices, were communicated to Parliament. The prince, indeed, qualified his acceptance by declaring that he did it only as a temporary arrangement, and in the hope, notwithstanding the peculiar and unprecedented circumstances, of preserving the interests of the king, the crown, and the people.

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