Before passing to the events to which those hopes gave rise, an incident

must be mentioned which, though it had but little effect at the moment,

has been always considered as a blot on William's character, and added

point to the bitter attacks directed against him towards the close of

his reign. Melville had proved unequal to the task of governing

Scotland, and the management of the affairs of that country had passed

almost entirely into the hands of the Dalrymples, father and son, the

elder of whom was President of the Court of Session, having been lately

raised to the peerage by the title of Viscount Stair. The son, known as

the Master of Stair, was appointed Secretary for Scotland, resident in

London. To him now fell the duty of pacifying the Highlands, where the

civil war continued to smoulder. Unable to give the Highlanders any

effectual support, James had told them that they were at liberty to make

peace with the conqueror. It has been already mentioned that local

politics had more to do with the conduct of the Highlanders than any

question as to the reigning dynasty, and that their hatred directed

against the head of the Campbell clan arose largely from the condition

of dependence to him in which they found themselves, and which was due

in a great degree to unpaid arrears of rent. It was determined now to

adopt a plan which had been formerly suggested, and to expend some

£15,000 in relieving them from their difficulties. The distribution of

this money was unwisely intrusted to Breadalbane, himself a Campbell,

and too much interested in the encroachments of that house not to be

unpopular. He was profoundly and justly mistrusted by the Highlanders,

and the negotiations for the distribution of the money proceeded but

slowly, the chief leader of the opposition to the settlement being

Macdonald of Glencoe, one of that tribe which had suffered most from the

growth of the Campbells. Pressure was put upon the Highlanders to bring

the negotiation to a conclusion. A proclamation was issued, promising

pardon to all who, before the 31st of December 1691, should swear to

live peaceably under the existing Government. All who refused to take

this oath were to be regarded as public enemies. As the Government

appeared to be in earnest, the chiefs yielded, making it a sort of point

of honour to yield as slowly as possible. In this foolish contest of

honour Mac Ian of Glencoe was unfortunately the victor. Not till the

very day named did he appear at Fort William to take the oaths. When he

arrived there he found to his dismay that there was no magistrate to

receive them, and he was compelled forthwith to set out through the

winter snow to Inverary to find a magistrate. The journey was so

difficult that it was not till the 6th of January that he reached

Inverary. Under the circumstances, the sheriff there consented, though

after the prescribed date, to receive the oath, and sent it, with a

certificate stating the circumstances to Edinburgh. The slowness of

Macdonald had played into the hands of his enemies the Campbells.

Breadalbane and Argyle were at one in their determination to use their

advantage, and they found a ready assistant in the Master of Stair,

whose views, free from all local feeling, were of the sternest

description, and who thought the Highlanders should be treated as

uncivilized barbarians. He had been disappointed at the submission of

the clans, and rejoiced at the opportunity of making one example. By his

means the certificate granted by the sheriff appears to have been

suppressed, and an order was drawn up and laid before William, in which,

along with other instructions to the commander of the army in Scotland,

were these words with regard to the clan of Glencoe: "It will be proper,

for the vindication of public justice, to extirpate that set of

thieves." William signed the order, probably without carefully reading

it, almost certainly without understanding what Dalrymple meant by

extirpation. His scheme was one of the utmost barbarity. A detachment of

soldiers was sent into the glen as though on a friendly mission. They

were kindly received and hospitably kept for more than a week. Then, at

a fixed date, when other troops were to have stopped all the passes,

they suddenly fell upon their kindly hosts and cruelly murdered them.

The plan was but partially carried out. The passes had not been stopped,

and not more than thirty-eight of the Highlanders were actually killed.

But the villages were destroyed, the cattle driven off, and it is

unknown how many more perished as they fled in the dead of winter in

the wild mountains which surrounded their glen.

[Sidenote: Threatened invasion of England.]

It was just after this event, in March, that William went abroad to

resume the Continental war. As usual, his absence was the time of danger

for England. An invasion from France had long been planned, and was on

the point of taking place. Excited by the constant untruthful account of

his agents in England, encouraged by the artful and well-planned

treachery of Marlborough and William's other ministers, James had never

ceased to press upon Louis the wisdom of an assault upon England. His

urgent instances had always been met by the opposition of the war

minister Louvois. Conscious that his superiority lay in the organization

of large disciplined armies in the field, and led by the experience of

his life to look to the great operations of regular warfare on the Rhine

and in Italy as the real sources of greatness for France, that minister

had always set his face against little wars. He was moreover jealous of

the influence of Lauzun at the Court of St. Germains, and had repeatedly

pointed out what was very true, the falseness of the Jacobite accounts,

the weak character of James, the total untrustworthiness of his

resources, and the consequent necessity which would be laid upon France

of carrying out such an invasion, in fact, entirely unaided. He had

dwelt also upon the strong national feeling of the English, repeatedly

exhibited when an invasion was threatened, and the uncertainty, even

were the attempt successful, of the continued assistance and alliance of

a Prince so ignorant and selfish as James. Nevertheless, in this

instance James was right, not that all and more than all that Louvois

urged was not true, but that the separation of England from the

coalition, the command of the sea, and the blow which would be dealt to

William's influence, were worth any sacrifice which France might make.

Louvois' arguments, however, had hitherto prevailed; the assistance

given to James had been but slight. But Louvois' death (which took place

on the 16th of July 1691) opened brighter hopes to the exiled King.

Louis was at length persuaded; and a vast plan was made which, had it

been carried out as intended, might well have been successful. An army

was secretly collected during the winter on the coast of Normandy. Two

fleets were assembled at Brest and at Toulon, numbering together 80

ships of the line, and placed under the command of Tourville and

D'Estrées, to convoy this army to England. James, misled by his hopes

and by the double-dealing of Russell, believed, and made Louis believe,

that the English fleet was thoroughly disaffected. Secure in this

belief, it was without much anxiety that the invaders found the spring

far advanced, while still the weather prevented the junction of the

fleets.

[Sidenote: Battle of La Hogue. May 19.]

But meanwhile all secresy had been lost. The Queen in England, and

William in Holland, had put forth all their energy, and a combined Dutch

and English fleet of 90 ships was in the Channel under command of

Russell. At last one French squadron, that of Tourville, consisting of

44 ships, made its appearance. It was supposed that, weak as it was, it

was sufficient for all necessary purposes; it could probably beat the

Dutch contingent, and the English fleet was of no account, for neither

Russell nor his men were likely to fight. Relying on this false belief,

Louis issued peremptory orders to his admiral to cover the invasion, and

fight the enemy wherever he met them. But James's folly had already gone

far to thwart any hopes based upon the temper of the English. He had

issued a Declaration, the work of his counsellor Melfort, excepting from

all hope of pardon, not only a long list of gentlemen by name, but whole

classes of Englishmen, all judges, jurymen, and lawyers who had been

employed in any of the prosecutions of Jacobites, all magistrates who

did not instantly (regardless of where they might be) make common cause

with him upon his appearance, all spies and informers who had divulged

his secrets, even the insignificant fishermen of Sheerness who had

hindered him on his first attempt to escape from England. So ridiculous,

so ill-judged was the Declaration, that, far from suppressing it, the

English Council reprinted it, and distributed it largely, with a few

pungent criticisms of their own. Even Jacobites had to confess that at

least 500 men were excepted. It is easy to conceive the effect of such a

Declaration, when contrasted with William's noble Act of Grace of the

preceding year. What James's folly had thus half done the Queen's

sagacity completed. Urged on all sides to apprehend known Jacobites,

with the denunciations of a plot, perfectly fictitious indeed, but none

the less very plausible, the creation of a rascal of the name of Young,

just placed in her hands, and fully conscious of the intrigues of

Russell her admiral, she wrote a noble letter, expressing her trust and

reliance on the patriotism of her fleet, and sent it to Russell, with

orders to read it to the captains of his fleet. Russell, at heart a Whig

and a devoted lover of his profession, hesitated no longer. He would

fight, he said, though King James himself were in the hostile fleet. He

went from ship to ship, encouraging the crews, and when Tourville bore

down upon him there was no sign of faint-heartedness in the English

fleet. Overpowered by numbers, the French fleet fled, broke into

fragments, and was destroyed piecemeal. But twelve of the largest ships,

with Tourville himself, took refuge under the Forts of La Hogue, under

the eyes of James and Marshal Bellefonds, commander of the army. There,

as they lay in two divisions in shallow water, they were attacked on two

successive days by a flotilla of English boats, under Admiral Rooke; and

under the guns of the forts, which were supposed to render them quite

secure, they were taken and burnt, while James looked on and saw the

destruction of this his last hope.

[Sidenote: Second crisis of the war over.]

[Sidenote: Subsequent ill success of the fleet.]

This great victory over the French, the first which the nation had won

for many years, drove the people wild with delight. All the more heavy

was their disappointment at the feeble manner in which it was followed

up, and at the ill success of the war in the Netherlands in the latter

part of the year. An expedition against St. Malo failed through the

jealousy of its commanders. The broken fleet of Tourville, unable to

keep the sea, assumed a new form. French cruisers and privateers covered

the ocean, and hundreds of English merchantmen fell a prey to them. The

commercial world suffered more heavily from the individual enterprises

of men such as the privateer captains Jean Bart and Dugouay Trouin than

from the great united fleets of France, and almost regretted the victory

which had called to life such enemies.

[Sidenote: Fall of Namur. June 30.]

[Sidenote: Battle of Steinkirk. Aug. 4.]

The chief incidents of the war in the Netherlands--the fall of the great

fortress of Namur, and the battle of Steinkirk--were very characteristic

of the art of war at this period. It was a time of slow, methodical, and

scientific movement in the field, but of great advance in the art of

attacking and defending fortresses, which in the hands of Vauban and

Cohorn was so far perfected, that for more than a century no important

change was made in the system they advocated. Louis did not press his

advantage; after taking Namur his army was diminished by detachments

sent to other quarters, and William thought he saw an opportunity of

striking a heavy blow against his weakened opponent. A traitor in the

English army had habitually informed Marshal Luxemburg of every movement

of the allied troops. His correspondence was discovered, and with a

pistol at his breast he was forced to write false information which

William dictated. Having thus, as he hoped, misdirected the vigilance of

his enemy, the King determined upon a surprise. The unexpected

difficulties offered by the country prevented its success. Luxemburg

got his troops into order with extraordinary rapidity, and the English

division under Mackay soon found itself hotly engaged. It was successful

in its first efforts, but the household troops of Louis were sent

against it, and Count Solmes withheld the supports which should have

come to its assistance. The division was nearly destroyed, and the anger

of the English blazed up fiercely against the Dutch general, who, set

over the head of the English commanders, thus basely deserted their

troops.

[Sidenote: Discontented Parliament. Nov. 4.]

It was thus, with many causes of discontent, that, upon the return of

William to England, the Parliament assembled. Mismanagement had

neutralized the great victory of La Hogue; the discovery of Preston's

plot had not been followed by a single act of justice upon the

Jacobites, a sharp quarrel had broken out between the Queen and her

sister, which, as Marlborough's treachery was unknown, seemed merely

capricious and causeless; the war in the Netherlands had been a mere

disastrous repetition of the last year's campaign; William's chief

misfortune was commonly attributed to the mismanagement, or perhaps the

treachery of the Dutch general; the House of Lords had been alienated by

the apprehension of two of its members, who had been put to their

recognizances, and no further charge brought against them; the harvest

in England had failed, so that corn had doubled its natural price; and

the police had grown so lax that highwaymen in gangs of twenty and

thirty infested the country, and robbed almost within sight of London.

Both Lords and Commons consequently entered warmly upon the

consideration of the state of the nation. But the continued jealousy

which existed between the two Houses brought their inquiries to nothing.

As yet neither Ministry nor Opposition was sufficiently organized to

secure the advantages either of stable government or of thorough reform.

The administration was carried on as before with all the evils of a

Ministry divided against itself, in the presence of a factious and

disorganized Opposition.

[Sidenote: The Land Tax.]

[Sidenote: Origin of the National Debt. Jan. 20, 1693.]

Some important steps were however taken with regard to finance. There

was still a tolerably unanimous feeling in favour of the war, and money

had to be procured. In the arrangements for supplying the necessary

money, the financial talents of Charles Montague, a young and rising

member of the Whig party, first became conspicuous. Early known as a man

of letters, and the author in company with Prior of "The Town and

Country Mouse," he had been introduced to the King by his patron the

Earl of Dorset, and, after strengthening his position by a marriage with

the Dowager Countess of Manchester, had entered political life, and had

been appointed one of the Lords of the Treasury in 1691. The financial

measures recommended consisted of a reorganization of the Land Tax and

of the first establishment of Government loans. The extraordinary

expenses of Government had in early times been met by subsidies. These

subsidies were levied both on moveables and on land, but were chiefly

supported by an assessment on the land at the nominal rate of four

shillings in the pound. Land had increased greatly in value as the

demand for it increased, while gold and silver had fallen greatly in

value after the discovery of America. In the assessment for subsidies

neither of these circumstances was taken into consideration. The four

shilling land tax had come in reality to be less than twopence in the

pound. During the Commonwealth, and subsequently, a different method of

taxation had been followed. The sum to be raised had been first

determined, and each landowner had been called upon to pay a

proportional share. In 1692 the Land Tax was reintroduced and

reorganized. A new valuation was made, and upon this basis a tax was

annually laid upon the land varying from a minimum of one shilling in

time of peace to four shillings in times of emergency. Four shillings on

this new valuation produced about £2,000,000. This sum fell considerably

short of what was required. In addition, therefore, a loan, which is the

origin of the National Debt, was raised. Money was plentiful in the

country, and was so easily obtained, that bubble companies and

stock-jobbing had become rife. Montague determined to turn some of this

superfluous wealth to the use of the country, and to spread the payment

of the debt over several generations. The plan at first adopted in

raising these loans was not exactly the same as our present method of

perpetual funding. The lenders were life annuitants, and the interest of

the loan was secured on new duties on beer and other liquors. As each

annuitant died his annuity was divided among the survivors, till their

number was reduced to seven, who would at that time be naturally in

receipt of an enormous interest on their original loan. After that, on

the death of each of those seven, his annuity lapsed to Government. The

whole debt would therefore be extinguished at the death of the

longest-lived annuitant.

[Sidenote: Disastrous campaign. 1693.]

[Sidenote: Battle of Landen. July 19.]

The money thus collected was soon spent upon another disastrous

campaign. Louis, in spite of the exhausted condition of his country,

made extraordinary efforts in all directions. As far as the English only

were concerned, the two great events of the campaign were the battle of

Landen and the destruction of the Smyrna fleet. Louis, using his late

conquest, Namur, for his point of departure, had formed two armies, one

under Boufflers, the other under Luxemburg, and hoped to repeat the

triumph of former years by the capture of either Liège or Brussels. But

he found it was impossible to take either of those cities without

fighting a pitched battle with William. In spite of the earnest request

of his generals, he withdrew to Versailles, and removed the army of

Boufflers to the Rhine. Though thus weakened, Luxemburg, by a threatened

attack upon Liège, induced William to reduce his forces to save that

town, and then falling upon him at Landen, defeated him after a battle,

the stubbornest and bloodiest of the war. William's skill somewhat

neutralized the effect of his defeat, and Charleroi was the only new

acquisition of the French in the Low Countries.

[Sidenote: Loss of the Smyrna fleet. June.]

The loss of the Smyrna fleet made perhaps even greater impression upon

the English than the defeat of Landen. The fleet, in which was

accumulated more than a year's supply for the Eastern markets, and which

numbered 400 ships, was to be convoyed in safety from London through the

Straits of Gibraltar. After passing the Channel unopposed, the English

admirals, supposing that the danger was over, withdrew towards England

with their ships of war, and the trading fleet passed onward, guarded

only by Rooke with about twenty men of war. Off St. Vincent it fell in

with the whole combined navy of France, for the squadrons of Toulon and

Brest had joined, and were lying in wait for their rich prey off the

coast of Spain. The convoy was completely broken up, many vessels

destroyed, while the others fled for safety in all directions. The loss

of the English was estimated at many millions. The disaster would

certainly have been much worse had not two Dutch ships which formed part

of the convoy gallantly sacrificed themselves, and engaged no less than

eighteen of the enemy's fleet.

In other parts of Europe the armies of France were equally successful.

Catalonia had been invaded and Rosas taken. Catinat had defeated the

Duke of Savoy in the great battle of Marsiglia (Oct. 3). The Turks had

compelled the Germans to raise the siege of Belgrade. Yet, in spite of

these successes, France was so worn out, that hints of a desire for

peace began to reach the English King.

[Sidenote: William's difficulty with regard to his Parliament.]

[Sidenote: He forms a united Whig ministry.]

The possibility of being called upon to settle this great point, and the

necessity of taking speedy advantage of his enemy's weakness, brought

more clearly home to William the great difficulty which had beset his

reign. For the position which was necessary to enable him to engage

authoritatively in the affairs of Europe, for the money required for the

pay of his army, and for the subsidies by which alone the allies were

kept true to their engagements, he was dependent upon Parliament. For at

the Revolution the Parliament had taken upon itself the supreme

authority of the nation. Yet upon that Parliament he was unable to rely;

for the representative body, though conscious of its power, had not yet

learnt to use it advantageously. It was that worst of all forms of

supreme power, a large disorganized assembly. Well aware that, both as

head of a confederacy and as a general, freedom of action was necessary

for him, William had kept as far as possible the management of foreign

affairs in his own hands, and had sought to win the favour of all

parties by a judicious impartiality. In the main he had been well

supported in his foreign policy; but faction was so rife, the increasing

divergence of opinion so great, and the capricious character of the

Lower House so evident, that he could take no important step with

confidence. He could not answer for a year's continuance of the war

spirit, nor be certain that any steps he might take with regard to peace

would be acknowledged even by his own ministers. It became necessary, if

possible, to introduce some order and organization into this uncertain

body. It would be better to risk a formal opposition of a certain

number, and be sure of unanimity in his own administration, than to be

at the caprice of a popular assembly. William therefore listened to the

suggestions of Sunderland, and determined to place himself entirely in

the hands of the Whig party, that party to which he owed his elevation

to the throne, and which was pledged to the continuation of the war.

During the next two years a change in ministry was gradually carried

out, which ended by the establishment in 1696 of the first united

ministry in English history. It was led by the chiefs of the Whig party,

of which the leaders were Somers, Halifax, Russell and Wharton (known

afterwards as the Junto).

[Sidenote: Party struggles.]

Parliament during these years was occupied in financial arrangements to

meet the constant drain of the war, and in perpetual party struggles

which terminated in the complete triumph of the Whigs, and in the

substitution of the leaders of that party for their Tory rivals in all

the chief offices of the administration. The first trial of strength

between the parties arose upon the question of the naval administration

of the former year. The whole nation smarted under the disasters which

had followed on the great victory of La Hogue, which the Whigs had

attributed not only to the maladministration of the two Tory admirals to

whom the fleet had been intrusted, but also to treachery. It was

impossible, they argued, that Louis could have denuded the Channel of

his fleet, and allowed a junction of his admirals so far south as St.

Vincent, unless he had had good reason to believe that the rich prey he

desired would fall into his hands but weakly guarded. The Tories, who

were unable to deny the maladministration, were anxious to exclude the

word "treacherous" from the motion. The Whig party was however

triumphant, and by a considerable majority the word was retained. But

though the general assertion of treason was thus made, the Commons, as

was not unusual, shrunk from fixing the treason upon any particular

person, and each individual accused was acquitted by a small majority.

Enough had been done, however, to give the King a fair opportunity of

re-establishing Russell, the great enemy of Nottingham the Secretary, at

the head of the Admiralty, and thus taking one step towards his Whig

ministry. It was impossible for Nottingham to remain in office with

Russell; he was consequently removed from the Secretaryship, and a fresh

vacancy thus created, which, after some delay, caused by the

conscientious scruples of Shrewsbury, who felt keenly the fault he had

once committed in tampering with the Jacobites, was filled by that

nobleman, one of the Whig chiefs. At the close of the session,

therefore, William found himself with most of his chief officers

belonging to the Whig party. Trenchard and Shrewsbury were Secretaries.

Russell was the head of the Admiralty. Somers was Lord Keeper, and

Montague Chancellor of the Exchequer. The only two Tories of importance

left were Caermarthen, Lord President, and Godolphin, at the head of the

Treasury. But the character of the latter minister led him to devote

himself almost exclusively to his official business, of which he was

master. Caermarthen was therefore, in fact, the only important element

of discord in the administration.

[Sidenote: Establishment of the Bank of England.]

[Sidenote: The Triennial Act passed. Dec. 1694.]

Montague owed his elevation to the continued success of his financial

plans. A fresh loan, known as the Lottery Loan--because though the whole

rate of interest was low, in exceptional cases chosen by lottery it was

very high--was successfully negotiated, and more important than this,

the Bank of England was triumphantly established. Banking with private

goldsmiths had come into fashion within the last two reigns, when the

convenience of cheques in the place of ready-money payments had become

obvious, while the advantage to the banker who had the use of the ready

money was also plain. The fault of the system was its insecurity, which

had been proved by the not unfrequent bankruptcy of one or other of the

banking goldsmiths. A Scotchman of the name of Paterson had some years

previously suggested the plan of a national bank, by which the

Government should obtain some of the advantages of the banker, and the

public, while gaining the convenience of cheques, should have a better

security than private goldsmiths offered. This scheme Montague now

adopted. He borrowed rather upwards of a million, and formed the lenders

into a banking company, allowing them to treat the loan to Government as

part of their capital, the interest of which, secured upon taxes, gave

them the requisite supply of ready money. They were bound to pursue no

other business except banking, yet, even with this restriction, so

desirable did the plan seem, that it was at once triumphantly carried

through. As a contingent advantage to Government, it is to be observed

that the company, which included many of the chiefs of the moneyed

interest, were pledged, for their own preservation, to support the

present settlement of the throne. Their existence depended upon the

regular payment of the interest upon their loan, which it was scarcely

possible that the Jacobites, if successful, would pay. The importance of

this point became very obvious afterwards, when, in more than one

crisis, the credit of Government was saved by advances from the Bank.

One other important measure was carried by this Parliament, and that

also was in accordance with the principles of the Whigs. This was the

Triennial Act, limiting the duration of Parliament to three years. The

King, always jealous of his prerogative, had already once refused his

assent to this Bill; but now, having placed himself in Whig hands, he

withdrew his opposition, and the Bill was passed.

[Sidenote: Death of Queen Mary. Dec. 20.]

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