CHAPTER XXVIII.

THE LAST YEAR OF “THE GREAT PEACE.”

Abortive Attacks on the Ministry--Mr. Disraeli’s First Budget--Fall

of the Tory Cabinet--The Queen and Lord Aberdeen--Organising the

Coalition--A Ministry of “All the Talents”--The Queen and South

Kensington--A Miser’s Legacy to the Queen--Sport at

Balmoral--Proclamation of the Second Empire--The “Battle of the

Numeral”--The Queen Initiates a Policy--Personal Government in the

Victorian Age--A Servile Minister--Lord Malmesbury’s

Spies--Napoleon III. and “Mrs. Howard”--Creole Card-Parties at

Kensington--Napoleon III. Proposes to Marry the Queen’s Niece--Lord

John Russell’s Education Scheme--Mr. Gladstone’s First Budget--The

India Bill--Transportation of Convicts to Australia Stopped--The

Gold Fever in Australia--The Rush to the Diggings--The First Gold

Ships in the Thames--Gold Discoveries and Free Trade--Chagrin of

the Protectionists--The Rise in Prices--Practical Success of Peel’s

Fiscal Policy--Strikes and Dear Bread--End of the Great Peace.

No sooner had the Duke of Wellington been buried than rival parties

resumed the war of faction. The Free Traders, who had been resuscitating

the old anti-Corn Law organisation in the North of England, resolved to

force from the Ministry an unambiguous declaration against Protection.

Mr. Charles Villiers accordingly moved a series of resolutions on the

23rd of November, affirming, that the Free Trade policy of the country

had been wise, just, and beneficial[64]--“three odious epithets,” said

Mr. Disraeli, which could not be accepted by the Tory Party. He

ridiculed this attempt to revive the cries of “exhausted factions and

obsolete politics.” He was himself fain, however, to propose a

resolution, which admitted that Free Trade had cheapened the necessaries

of life, which bound the Government to adhere to that policy, but which

did not contain any formal recantation of Protectionist principles.[65]

Mr. Bright hit the weak spot in these tactics when he asked, was it

safest to let the national verdict on Free Trade be drawn up by Mr.

Villiers, who advocated it, or by Mr. Disraeli, who did not advocate it,

and the majority of whose followers were pledged to exact from the

people some kind of compensation to the landed interest for the repeal

of the bread tax? Had it suited Lord Palmerston to let the Ministry be

beaten, nothing could have prevented their defeat. But, as we have seen,

he had resolved never to serve under Lord John Russell; and there was

too much reason to fear that at the moment Lord John was the only

possible Premier in the event of Lord Derby resigning office.

“A moderate resolution,” writes Sir George Cornewall Lewis to Sir Edmund

Head, “had been prepared by Graham, and assented to by Lord John and

Gladstone. Charles Villiers was willing to move it, but Cobden insisted

on something stronger, in the secret hope that the House would reject

it, and thus damage itself in public opinion, thereby promoting the

cause of Parliamentary Reform. Palmerston got possession of the

resolution prepared by Graham, and moved it as an intermediate

proposition.”[66] The resolution affirmed the principle of Free Trade,

but not in terms obtrusively offensive to the Tories. It was eagerly

accepted by Mr. Disraeli, who saw in it the means of deliverance from

his enemies, and it was carried by a majority of 468 to 53--the minority

representing all the Tories who were prepared to cling to Protection,

even after it had been formally abandoned by Mr. Disraeli in his

audacious address to his constituents.[67]

Mr. Disraeli’s tactics in thus evading defeat have sometimes been cited

as a proof of his skill. In reality, they were the outcome of

inexperience and exaggerated self-confidence. He did not correctly

understand why Sir James Graham and Mr. Gladstone desired to move a

moderate resolution. They were, of course, anxious not to turn out the

Ministry before Mr. Disraeli’s Budget saw the light. They were morally

certain that it would contain some fantastic proposals, which must not

only wreck the popularity of the Government, but destroy public

confidence for ever in Mr. Disraeli’s financial skill. Events proved

that they were right in their calculation.

[Illustration: NORTH TERRACE AND WYKEHAM TOWER, WINDSOR CASTLE.]

On the 3rd of December, in a speech of dazzling brilliancy, Mr. Disraeli

introduced his famous and fatal Budget. It reduced the Malt Tax by

one-half. The House Duty was raised from 9d. to 1s. 6d. in the £, and

extended from houses of £20 to houses of £10 rental. Light dues paid by

ships other than for the support of lighthouses pure and simple were

taken off. Tea duties were to be reduced gradually by small annual

amounts from 2s. 2¼d. to 1s. a

[Illustration: THE DUKE OF ARGYLE.]

pound. The Income Tax was to be extended to funded property and salaries

in Ireland. A distinction was drawn in taxing permanent and precarious

incomes, the exemption for industrial incomes being limited to £100 a

year, and for incomes from property to £50; and the rates of assessment

per £ were 7d. on incomes from rent of land and from funds, but only

5¼d. on incomes from farming, trade, and salaries. Farmers’ incomes

were to be taken as a third instead of a half of their rents. The

remissions were so balanced by the additions to taxation that no surplus

on the estimated revenue could be shown. A surplus of £400,000 was,

however, manufactured by appropriating as revenue the repayments on

local loans made to the Exchequer Loan Commission--repayments hitherto

used for clearing off debt. The scheme could not stand criticism. After

four nights’ debate, it was utterly demolished, Mr. Gladstone’s speech

attacking it being one of the few which are said to have ever really

turned doubtful votes in the House of Commons. The addition to the House

Tax, pressing, as it did, on those who would come within the extended

range of the Income Tax, infuriated the urban voters. The remission of

half the Malt Tax failed to satisfy a landed interest, hungering for

compensation for the abolition of the Corn Laws, because a reduced Malt

Tax, it was agreed, benefited nobody but the publicans and the brewers.

An extension of the Income Tax to funded property, Mr. Gladstone

contended, was a breach of Mr. Pitt’s pledge to the public creditor, in

1798, that no distinct and special tax should ever be laid on the

stockholder as such. Mr. Gladstone, like all the eminent financial

authorities, protested against recognising the illusory principle of a

graduated Income Tax, which lurked in the distinction made between

permanent and precarious incomes. He further protested against the

danger of estimating too narrowly for the services of the year, and

urged with incontestable force that it was a vicious principle to reckon

as surplus revenue £400,000 of repayments on the score of local

loans--that is to say, to regard the repayment of borrowed money as true

income. The Government were beaten on their Budget, by a vote of 305 to

286, on the morning of the 17th of December.[68] In the evening Lord

Derby handed his resignation to the Queen at Osborne.

Her Majesty, fully aware of the reasons that rendered Lord John Russell

an impossible Premier, now saw her way to organising the strong

Government of capable and experienced statesmen which, ever since 1846,

she had held could only be formed by a coalition of the Whigs and the

Peelites. She accordingly summoned Lord Aberdeen and Lord Lansdowne to

assist her out of the Ministerial crisis. Gout prevented Lord Lansdowne

from attending at Osborne. His ill-health, together with his loyalty to

Lord John Russell, and the disinclination of the Peelites to serve under

him, rendered it impossible for him to accept the Premiership. It was

equally impossible for the Queen to ask Lord Palmerston to become Prime

Minister, after the recent events which had led to his dismissal from

the Foreign Office. Hence Lord Aberdeen, though the head of the smallest

faction, was the candidate for the Premiership who least divided the

Opposition. He was therefore charged with the task of forming a

Cabinet.[69] On the 28th of December the famous Coalition Ministry was

organised--Lord Cranworth was Lord Chancellor; Lord Aberdeen, Prime

Minister; Mr. Gladstone, Chancellor of the Exchequer; Lord Palmerston,

Home Secretary; Lord John Russell,[70] Foreign Secretary; the Duke of

Newcastle, Colonial Secretary; Mr. Sidney Herbert, War Secretary; Sir J.

Graham, First Lord of the Admiralty; Lord Granville, President of the

Council; Sir C. Wood, President of the Board of Control; the Duke of

Argyle, Lord Privy Seal; Sir W. Molesworth, Chief Commissioner of Works;

the Marquis of Lansdowne, a Minister without office. “The success of our

excellent Aberdeen’s arduous task,” writes the Queen to the King of the

Belgians, “and the formation of so brilliant and strong a Cabinet would,

I was sure, please you. It is the realisation of the country’s and our

own most ardent wishes, and it deserves success, and will, I think,

command support.”[71] The Queen here simply reflected public opinion.

Never had a Cabinet of abler men, individually speaking, ruled England

since the Ministry of “All the Talents” fell from power. But the

Sovereign and her people both forgot that in our strange and anomalous

constitution no Cabinet is, as a rule, so weak as a Cabinet of strong

men. This Ministry, which started on its career on the flood-tide of

Court and popular favour, was destined, by its vacillation in foreign

policy, to lead the country into the terrible calamity of a European

war. It was doomed to fall amidst the execrations even of those who,

like Mr. Cobden, declared that to his dying day he could never

sufficiently regret giving one of the votes that brought it into power.

After the formation of the Government, the usual explanations of the

position of affairs were given in both Houses of Parliament, Lord Derby

attempting to show that the destruction of his Ministry had been plotted

by an unprincipled combination of hostile factions. On the contrary, as

Sir George Cornewall Lewis says in one of his letters, “there was no

real anxiety on the part of the Opposition to turn out the Government;

the sections of it were divided, and there was none of that ‘coalition’

which Lord Derby spoke of. The Budget, however, was more than human

flesh and blood could bear. The promises of a substitute for Protection

which Disraeli had made at the Elections rendered it necessary that the

Government should propose something which appeared for the benefit of

the agriculturists. They sounded some of their supporters among the

county members as to a transfer from the local rates to the Consolidated

Fund; but I believe the answer they got was, that a measure which

destroyed the power of the magistrates and the local authorities would

not be acceptable to their party. They had nothing then to propose but a

reduction of the Malt Tax, which created a large deficit, and rendered

an increase of taxation necessary. This latter object was effected by

doubling and enlarging the House Tax. Disraeli was evidently very

confident of the success of his Budget, and impatient to produce it. But

when it had been out a week it was clear the country would not agree to

it. The farmers did not care about the reduction of the Malt Tax; but

the towns did care very decidedly for the increase of the House Tax, and

showed a strong objection to it.... Having made their Budget a means of

redeeming their promise to give their party an equivalent for

Protection, they could not modify it, and therefore defeat on it was

vital.”[72] On the 31st of December all the appointments under the new

Government were filled up, and Parliament was adjourned till the 10th of

February, 1853.

[Illustration: VIEW IN BRAEMAR.]

In the early part of the year the Queen was much distressed by reason of

her husband’s anxieties in connection with the affairs of the Great

Exhibition. His idea was to apply the surplus in the hands of the

Exhibition Commissioners

[Illustration: QUEEN VICTORIA.

(_After the Equestrian Portrait by Count D’Orsay_)]

to the purchase of a site at South Kensington, for the Science and Art

Institution which he hoped to see created. Ninety acres of land were

bought for £342,500, of which sum Government advanced £177,500, with the

intention of transferring the National Gallery to the site. The agent of

the Commissioners, however, had in purchasing the land stupidly agreed

to take it on a building lease, under conditions which would have

destroyed their plans, and involved them in the dilemma of repudiating

their agent, or incurring liabilities to erect dwelling-houses, which

they dared not undertake. The vendor, Baron Villars, generously

permitted them to make other arrangements for buying the fee-simple of

the land; but the anxieties of the Prince during the period when the

issue was in suspense preyed terribly on his mind and health, and the

Queen has herself recorded how she exhausted all means in her power to

cheer and sustain him in his distress.

[Illustration: THE QUEEN’S VISIT TO THE BRITANNIA TUBULAR BRIDGE.]

Her Majesty’s birthday was spent in the sunshine of domestic happiness

at Osborne. In the festivities of the season the Queen, early in June,

assures her uncle, King Leopold, that she and her family joined only to

a limited extent. They gave two State balls and two State concerts. They

go, she says, three or four times a week to the play or opera, are

hardly ever later than midnight in going to bed and, but for the

fagging business of public affairs, the Season “would be nothing to us.”

During the summer, life at Osborne was diversified by several short

yachting excursions round the South Coast. In August the Queen planned

and carried out a brief visit to her uncle, King Leopold of Belgium,

reaching Antwerp on the 10th in the Royal yacht in a tempest of wind and

rain. At the King’s country seat at Laeken the Royal party spent four

bright and happy days, saddened only by the too visible gap in the

family circle, left by the death of Queen Louise. The disagreeable and

tempestuous voyage homeward was only broken by a charming visit to

Terneusen, where the simple hospitality and quaint old-world ways of the

villagers greatly delighted her Majesty, who seems to have passed a

pleasant day among them.

On the 30th of August her Majesty was amazed to receive information at

Balmoral to the effect that an eccentric old barrister called Nield had

bequeathed a legacy of £250,000 to her. John Camden Nield was a miser,

who had pinched and starved himself for thirty years to add to his

patrimony. The Queen very properly resolved to refuse the legacy if Mr.

Nield had any relations living who had a claim to the money;[73] but as

it appeared he had none, she accepted the gift. The holiday at Balmoral

was as bright and happy as could be wished. “Nothing,” writes Lord

Malmesbury, who was in attendance on the Queen at this time, “can exceed

the good nature with which I am treated, both by her Majesty and the

Prince. Balmoral is an old country house in bad repair, and totally

unfit for Royal personages.... The Royal party consists of the Duchess

of Kent, the ladies in waiting, Colonel Phipps, and Sir Arthur Gordon.

The rooms are so small that I am obliged to write my despatches on my

bed, and to keep the window constantly open to admit the necessary

quantity of air; and my private secretary, George Harris, lodged

somewhere three miles off. We played at billiards every evening, the

Queen and the Duchess being constantly obliged to get up from their

chairs to be out of the way of the cues. Nothing could be more cheerful

and evidently perfectly happy than the Queen and Prince, or more kind to

every one round them. I never met any man so remarkable for the variety

of information on all subjects as the latter, with a great fund of

humour _quand il se déboutonne_.” The Prince himself records in his

Diary,[74] however, that “Balmoral is in full splendour, and the people

there are very glad that it is now entirely our own.” On the 4th of

September Lord Malmesbury writes:--“The Prince had a wood driven not far

from the house. After we had been posted in line, two fine stags passed

me, which I missed. Colonel Phipps fired next, and lastly, the Prince,

without any effect. The Queen had come out to see the sport, lying down

in the heather by the Prince, and witnessed all these fiascos, to our

humiliation.”[75] This happy holiday was sadly broken by the death of

the Duke of Wellington, which brought the Court unexpectedly back to

Windsor in October, their route being through Edinburgh, Preston,

Chester, and North Wales, where they inspected, on the 14th of October,

the Britannia tubular bridge over the Menai Straits. The Queen drove

through the bridge in a State carriage drawn by men, while Prince

Albert, accompanied by Mr. R. Stephenson, walked across on the roof of

the tube. On reaching the south end, the party descended to the water’s

edge, from which they obtained a complete view of the magnificent

proportions of the gigantic structure.

During 1852 one striking event in Foreign Affairs that occupied the

attention of the Queen was the transformation of the French Republic

into the Second Empire. In Paris, on the 1st of January, Charles Louis

Napoleon was installed at Notre Dame as President of France, and he

promulgated a new Constitution, preserving little of the form and none

of the spirit of Liberty. The whole Executive was to be vested in the

President, who was to be advised by a Council of State, a Senate of

nobles nominated for life, and a powerless legislative body elected by

universal suffrage for six years, whose transactions at the demand of

five members could be kept secret. The next step taken by the

Prince-President was to issue Decrees on the 23rd of January, compelling

the Orleans Princes to sell their real and personal property in France

within a year, and confiscating the property settled on the family by

Louis Philippe previous to his accession in 1830. This raised a storm of

indignation among all Frenchmen who were not accomplices of the

Prince-President in the _coup d’état_, and it caused Montalembert to

resign his seat on the Consultative Commission of the 2nd of December.

De Morny and Fould also resigned, M. de Persigny replacing the

former.[76] To the Queen, whose partiality for the Orleans family was

well known, these Decrees were painfully offensive. The

Prince-President’s strongest partisan in England, Lord Malmesbury, wrote

a letter remonstrating with him, and the reply serves to illustrate the

character of the men who consented to serve in the Senate. “He (the

Prince-President),” says Lord Malmesbury in a letter to Lord Cowley,

British Ambassador at Paris, “declared the confiscation necessary, as

even some of his own Senators had been tampered with by Orleanist agents

and money.”[77] On September 13th this patriotic Senate prayed for “the

[Illustration: NOTRE DAME, PARIS (WEST FRONT).]

re-establishment of the hereditary sovereign power in the Bonaparte

family;” and on the 4th of November the Prince-President announced that

he had in view the restoration of the Empire, and ordered the French

people to be consulted on the matter. The French people, when consulted,

were for the restoration--7,839,552 voting “Yes,” and 254,501 “No.” The

vote was cast on the 21st of November, three days after Wellington was

laid in the grave. As Cobden said, one might almost picture the third

Napoleon rising from the yet open tomb of the vanquisher of the

first.[78] On the 2nd of December Charles Louis Napoleon was declared

Emperor of the French under the title of Napoleon III. The Constitution

of January was confirmed with some slight modifications. A Royal title

was given to Jérôme Bonaparte, Napoleon’s uncle. St. Arnaud, Magnan, and

Castillane were created Marshals of France; and then there arose the

first of the Imperial difficulties--that of obtaining recognition from

the European Courts.

[Illustration: COMTE DE MONTALEMBERT.]

The Queen took a thoroughly sensible view of the situation. The

atrocities of December and the confiscation of the Orleans property had

not prepossessed her Majesty in favour of the French Emperor. But in her

opinion there was no essential difference between such a Republic as had

been established by the _coup d’état_ strengthened by the Constitution

of January, and a military Empire without glory or genius. If the vast

majority of Frenchmen were desirous of transforming their

Prince-President into an Emperor, that was their affair, and Foreign

Courts had no concern in the matter. The Queen was, therefore, strongly

in favour of recognising the title of the Emperor of the French, and of

according to him the customary courtesy of addressing him in ceremonial

communications as _mon frère_.[79] The Northern Courts, however, could

not bring themselves to treat as an equal, an adventurer who, to use

his own expression in announcing his marriage in the Chamber on the 22nd

of January, 1853, “had frankly taken up before Europe the _position de

parvenu_.” Ultimately they all yielded to facts, and with the exception

of Russia, agreed to address Charles Louis Bonaparte as their “brother.”

The haughty autocrat of Muscovy, who had smiled on him approvingly when

he strangled Liberty in France, frowned on the attempt to raise on its

ruins a fabric of Empire, claiming parity with the ancient dominion of

the Romanoffs. The Czar, therefore, persisted in addressing the French

Emperor, not as “my brother,” but “my cousin.” This trivial slight is

mentioned here, because it had subsequently a potent influence on the

fortunes of England.

“England,” writes Sir Theodore Martin, “conceded the phrase _mon frère_

without a grudge.”[80] That is a somewhat misleading statement. It was

certainly decided in England that the Emperor should be recognised some

little time before the Empire was proclaimed, because everybody knew

that its proclamation was inevitable. Having determined that the

Prince-President was to be recognised in some fashion as Emperor, a

question as to style was raised by the pedants of diplomacy, which

showed where the “grudge” lay. It gave rise to that most grotesque of

diplomatic struggles--the once famous but now forgotten Battle of the

Numeral. Charles Louis Bonaparte, through his envoys, let it be known at

the Court of the Queen that he meant to call himself Napoleon III. “Why

Napoleon the Third?” asked alarmed Diplomacy. “Clearly he means to filch

from us a recognition of the ephemeral title of the Duc de Reichstadt,

the son and heir of Napoleon I., who was proclaimed when the First

Empire crashed into ruins.” It was a crafty device to avenge Waterloo

with the blast of a herald’s trumpet, and to wipe out fifty years of

French history, just as the Parliament of the Restoration tried to

efface the Commonwealth by dating the statutes of 1660, as of the

twelfth year of the Merry Monarch’s reign. The usurper might be

recognised by England as Napoleon II., perhaps, but never, argued Lord

Malmesbury, as Napoleon III., for that would have countenanced more than

our recognition of the Second Empire was actually meant to convey. It

would have implied a recognition of the Emperor’s _hereditary_, as

distinguished from his _elective_, title to the Throne. Most wearisome

were the disputes and most tiresome the conferences between Lord

Malmesbury, then Foreign Secretary, and the French Ambassador on this

subject. At last it was agreed that we should accept the disagreeable

numeral, after the French Government admitted in writing that it was not

to imply our recognition of the Emperor’s hereditary right to the

Imperial Crown of France. From first to last, however, Lord Malmesbury

and the other diplomatists were mistaken. Very little reflection might

have taught them that if the numeral were meant to efface Waterloo, and

the Monarchies of the Bourbons and the Barricades, the usurper would

have styled himself Napoleon V., and not Napoleon III., for his elder

uncle Joseph and his father Louis both survived the young and ill-fated

Duc de Reichstadt. A hereditary title, moreover, would not need to have

been consecrated by a _plebiscite_, and the reign of its wearer would

not have been dated from 1852, but from the date of Louis Bonaparte’s

death. It is, therefore, natural to ask how Charles Louis Bonaparte came

to style himself the Third and not the Second Emperor. The explanation

illustrates the facility with which the tragicomedy of fussy English

diplomacy is transformed into farce at the touch of fact. Lord

Malmesbury, who is rendered supremely ridiculous by the story, tells it

himself as follows in his Diary:--

“December 29 (1852). We went to Heron Court. Whole country under water.

Lord Cowley[81] relates a curious anecdote as to the origin of the

numeral III. in the Emperor’s title. The Prefect of Bourges, where he

slept the first night of his progress, had given instructions that the

people were to shout ‘Vive Napoléon!’ But he wrote ‘Vive Napoléon!!!’

The people took the three notes of interjection for a numeral. The

President, on hearing it, sent the Duc de Mortemart to the Prefect to

know what the cry meant. When the whole thing was explained, the

President, tapping the Duke on the shoulder, said, ‘_Je ne savais pas

que j’avais un Préfet Machiavéliste._’”[82]

After the proclamation of the French Emperor, his matrimonial schemes

touched the family connections of the Queen somewhat closely. The

Emperor’s marriage, in truth, was the favourite topic for gossip and

scandal in every high social circle in Europe. As a matter of fact,

Charles Louis Napoleon was averse from marriage. Two women were already

devoted to him; perhaps more zealously than any bride of exalted rank

could ever be. One was Madame Favart de l’Anglade, a creole, who lived

some time at Kensington Gate, and whose whist and dinner parties have,

perhaps, not yet been quite forgotten in the old Court suburb. (Lord

Malmesbury, it may be said in passing, was told by Kisseleff, the

Russian Ambassador at Paris, that had the _coup d’état_ failed, Charles

Louis Bonaparte and De Morny were to have fled for concealment to this

lady’s house.) The other woman who exercised so much influence on the

Prince-President’s life was a Mrs. Howard. She was his mistress, and he

created her Comtesse de Beauregard after he broke off his intimacy with

her.[83] This event was virtually an intimation of his intention to

marry. He was anxious to have an heir--for obviously none of the

Bonapartes were fit to succeed him. To perpetuate a dynasty a Royal

bride would be useful, and to enable him to obtain a Royal bride,

Charles Louis Bonaparte persuaded France to proclaim him Emperor.

His first project was to seek in marriage the Princess Caroline

Stephanie de Vasa, a grand-daughter of the Grand Duchess of Baden, and

daughter of Prince Gustave de Vasa, son of the last King of Sweden of

the old legitimate dynasty. The proposal was not accepted, and the lady

afterwards married a German Prince. In December, however, Walewski was

sent to the English Court to ask the hand of the Princess Adelaide of

Hohenlohe for his Imperial master, greatly to the disquietude of the

Queen, who was her aunt. On the 28th of December, when the Tory

Ministers went to Windsor to deliver up their seals of office, the Queen

began at once to discuss this delicate affair with them. Lord Malmesbury

says:--“The Prince (Albert) read a letter from Prince Hohenlohe on the

subject, which amounted to this, that he was not sure of the settlement

being satisfactory, and that there were objections of religion and

morals. The Queen and Prince talked of the marriage reasonably, and

weighed the _pros_ and _cons_. Afraid the Princess should be dazzled if

she heard of the offer. I said I knew an offer would be made to the

father. Walewski would go himself. The Queen alluded to the fate of all

the wives of the rulers of France since 1789, but did not object

positively to the marriage.”[84] This project, however, fell to the

ground, and the Emperor, tired of being rejected by Princesses, acted on

the wise apophthegm of Ovid--_Si qua vis apte nubere, nube pari_. On the

22nd of January, 1853, he announced his intention of marrying Eugenia de

Montijo, Countess of Théba, daughter of the Donna Maria Manuela

Kirkpatrick, Dowager Countess de Montijo, by the Count de Montijo, an

officer of rank in the Spanish army. The father of the Donna Maria

Manuela Kirkpatrick was British Consul at Malaga, and supposed to be

descended from the assassin of the Red Comyn, whose family motto, “I mak

sickar” (“I make sure”), perpetuates grim

[Illustration: MDLLE. EUGENIA DE MONTIJO, AFTERWARDS EMPRESS OF THE

FRENCH.]

memories of his loyalty to the Bruce. His Majesty told the deputations

from the Senate, the Legislative Body and the Council of State, that

whilst it was his aim to place France once more within the pale of the

old Monarchies, that result would be better attained by policy than by

“Royal alliances, which create feelings of false security, and

frequently substitute family interests for those of the nation.” Now,

any dispute which engages Europe in diplomatic controversy that finally

leads to war, is apt to produce fresh groupings of the Powers. An

Imperial parvenu seeking for a respectable ally finds in these new

groupings excellent opportunities for insinuating himself into “the pale

of the old monarchies.” Hence the Emperor’s marriage was a sinister omen

for England, because it was his fixed idea that England was the most

profitable ally France could have. The Queen, however, on hearing that

the Emperor’s marriage was a love match, imagined that his abandonment

of an attempt to contract a Royal alliance gave additional force to his

assurance at Bordeaux, on the 9th of October, 1852, that the “Empire was

Peace,” and that under its guidance France was about to enter on a busy

epoch of Industrialism. English Society approved of the marriage,[85]

and the Press was loud in its praises of the Imperial pair.[86] Nobody,

indeed, had the faintest suspicion at the time that war was in store for

us--a war which gave the French Emperor that very alliance with England

for which he was then scheming. But before describing the events that

led up to the most disastrous calamity that darkens the Queen’s reign,

it may be well to sketch briefly the chief points in the Home Policy of

her Majesty’s Ministers during 1853.

It has been said that there were only two great projects in which the

Queen interested herself during this year, filled, as it was, with

distracting anxieties as to foreign affairs--the Budget and the India

Government Bill. There was, however, a third: Lord John Russell’s

scheme--unhappily abortive--for establishing a national system of public

instruction.

Parliament met on the 10th of February, and Mr. Disraeli called Sir

James Graham and Sir Charles Wood to account for speaking rudely of the

French Emperor in their hustings addresses. Nothing came of his pungent

attack, and public interest in politics was languid till April arrived,

when Mr. Gladstone introduced his celebrated Budget--the first of a

series that enabled him to divide with Sir Robert Peel the glory of

being the greatest Finance Minister of the Victorian age.

Mr. Gladstone found that Mr. Disraeli, by under-estimating his revenue

and over-estimating his expenditure, had left him with a surplus, not of

£461,000, but of £2,307,000.[87] Unexpected military expenditure, due to

dread of a French invasion, had reduced this surplus to £807,000. The

primary feature in Mr. Gladstone’s Budget was the extension of the tax

on personal property devised by will to real property, and also to

personal property that passed by settlement. This, Mr. Gladstone

reckoned, would ultimately bring in £2,000,000, and put him in a

position to deal with the Income Tax, which came to an end in 1853. He

proposed to continue the Income Tax at sevenpence in the pound for two

years, then to reduce it to sixpence, and in three years after that to

reduce it to fivepence. He extended the tax to Ireland, but, by way of

compensation, remitted the debts which Ireland had recently incurred to

the Imperial Treasury. He increased the duties on Scotch spirits from

3s. 5d. to 4s. 8d., and on Irish spirits from 2s. 8d. to 3s. 4d. a

gallon, and thus, he reckoned, he had a surplus of £2,151,000 to spend.

How did he spend it? He abolished the duty on soap, thereby terminating

the last of the taxes on the four “necessaries”--salt, leather, and

candles were the other three--which Adam Smith condemned a century

before.[88] He reduced the taxes on 256 minor articles of food, besides

tea, advertisements, carriages, dogs, male servants, apples, cheese,

cocoa, butter, and raisins. He reduced the rate of postage to the

Colonies--a reduction which, it is surprising to find, had not been even

suggested by Mr. Disraeli or any of his predecessors in the highest of

Imperial interests. An ingenious feature in his Budget was his

manipulation of the Funds. Old Three per Cent. Consols, which could be

paid off at a year’s notice, sold for a little over par, that is to say,

£100 of stock sold for a little more than £100. New Three per Cents,

however, which were not redeemable for twenty years, sold for

£103--_i.e._, £100 of stock was worth in the market £103, the difference

of £3 representing the value of the State guarantee to pay interest on

the stock for twenty years. Hence, he said, if he gave a like guarantee

for some of the unguaranteed stock, he might lay hands on the increment

of value thereby added to it for the benefit of the State. He

accordingly permitted fundholders to exchange £100 of Consols, or

“Reduced Three per Cents.” for Exchequer bonds,[89] or for £82 10s. in

New Three and a Half per Cent. Stock, guaranteed for forty years to pay

£2 17s. 9d. of interest, or for £110 irredeemable Two and a Half per

Cent. Stock. Mr. Spencer Walpole has said

[Illustration: PRINCE JÉRÔME BONAPARTE.]

that “in breadth, in comprehension, in boldness, in knowledge, and in

originality,” Mr. Gladstone’s first Budget will compare with Peel’s

greatest efforts in 1842 and 1845.[90] But even Mr. Walpole admits that,

whereas Peel’s Budgets can be tested by results, Mr. Gladstone’s can be

judged of only from its intention. The Crimean war--which he did not

foresee, and which, as will be shown presently, was then brewing--upset

all his calculations. It was not favourable to conversion of debt;

moreover, the new succession duty did not bring in one-fourth of the

estimated sum.[91] Only one important change was effected in the scheme.

The duty on advertisements, which Mr. Gladstone proposed should be

reduced to 6d., was abolished by the odd and novel method of moving and

carrying an amendment substituting the cipher (0) for the figure 6(d.),

in the resolution of the Chancellor of the Exchequer. Mr. Hume

challenged the competence of the House of Commons in Committee to adopt

a resolution with a “nought” in it instead of a definite figure, but the

Speaker ruled against him.

[Illustration: SKETCH IN THE OUTER CLOISTERS, WINDSOR CASTLE.]

The India Bill was introduced by Sir C. Wood on the 3rd of June, 1853.

The complaints against the system under which India was ruled were that

it led to wars, deficits, maladministration of justice, neglect of

public works and of education. The Dual Government of the Imperial Board

of Control and the Court of Directors of the East India Company was

maintained, but the Court of Directors was reduced from thirty members

to eighteen, twelve of whom were to be chosen by the Company, and six

nominated by the Crown, who were to be Indian officials of ten years’

service. The new system, which was to prevail till Parliament chose to

change it, put an end to the old plan of leasing the Indian Empire for a

term of years to a Company of merchant adventurers. As to patronage,

competition was substituted for nomination as the mode of entering the

public service. Direct appointments to the Indian Army were, however,

left in the hands of the Directors of the Company. The scheme was warmly

discussed, the friends of the Company insisting on immediate

legislation; its enemies, thinking that in time they might be able to

educate the country up to the point of abolishing the authority of the

Directors, and transferring the government of India absolutely to the

Crown,[92] pressed for delay. Mr. Disraeli and the bulk of the Tories

were for postponing legislation, but in the end the Government carried

the Bill.

Lord John Russell, on the 4th of April, explained his scheme for

establishing a system of national education. The main point in it was

that it empowered Municipal Authorities to raise a rate in aid of

voluntary schools, the rate to be applied to pay twopence in the week

for each scholar, provided fourpence or fivepence were contributed from

other sources. The scheme was, however, abandoned. Lord John had in his

speech foreshadowed the introduction of a Bill imposing drastic reforms

on the Universities, and this roused the Tory Party to obstruct his

proposals. It is but fair to draw attention to this Bill, because Lord

John Russell is entitled to the credit of having been the first

statesman to present a comprehensive scheme for organising primary

education, based on the principle that it is the duty of the community

to provide for the instruction of the people by levying an education

rate. This, said Mr. W. J. Fox, was “a most important step in the

progress of public instruction.”

A Bill empowering the Local Governments in Canada to deal with Clergy

Reserves was introduced by Mr. F. Peel on the 15th of February. It is

notable because the debates on it illustrate the difference between the

ideas of the two parties in the State as to Colonial Government--the

Tories in those days being on the whole opposed to granting the Colonies

privileges of self-government, whilst the Liberals favoured such grants.

In 1791 it was enacted that whenever the Crown disposed of waste lands

in Canada, one-seventh of their value should be reserved for the support

of the Protestant clergy. The funds, it seems, had not been fairly

distributed, the Established Churches of England and Scotland having

received the largest share of them. In 1840 the Imperial Legislature had

confirmed this appropriation by restraining the Canadian Legislatures

from meddling with these funds. The Bill of the Government simply gave

the Canadian Legislature the right of dealing with them as it thought

fit, on the ground that the disposal of lands which derived their value

from Canadian capital and Canadian enterprise was a matter of Colonial

rather than of Imperial concern. The Bill was passed.

On the 11th of July a Bill for altering the punishment of transportation

was introduced into the House of Lords by the Lord Chancellor. Only one

Colony--Western Australia--was willing to receive convicts, and not more

than 800 to 1,000 a year could be sent there. The Government proposed,

therefore, to limit transportation to such cases of crime as would carry

a sentence of fourteen years’ imprisonment, and substitute shorter

periods of imprisonment for offences, which up till now had been

punished by varying periods of transportation.

This proposal, which was carried, was forced on the State by the great

changes which had been effected in the Australian Colonies after the

discovery of gold in New South Wales. Here it may be well to notice the

manner in which these gold discoveries were made, and their effect on

the prosperity of the Empire.

It was on the 10th of September, 1852, that the West India mail steamer

brought news to England which revived the old yearning for the discovery

of the fabled El Dorado--dormant in the English breast since the days of

Raleigh. Gold, it was reported, had been found near Bathurst, in New

South Wales, where a frantic rush to the diggings had taken place. The

merchant left his warehouse, the shopman his counter, even the lawyers

deserted their clients--all eager to join in the headlong race to the

mines. But all the gold they were likely to win could not possibly

balance the loss caused to the Colony at the time by the mad stampede of

the shepherds, who abandoned their countless flocks for the mines. The

gold fever was further exacerbated by the subsequent discovery of

another rich deposit in Victoria. America had found her El Dorado in

California; Englishmen accordingly heard with pride that they, too, had

come into a richer heritage in the hitherto despised convict settlements

of Australasia. On the 23rd of November, 1852, three vessels from

Australia sailed into the Thames with a cargo of seven tons of solid

gold. The _Eagle_ brought 160,000 ounces, worth £600,000, and she had

made the passage from Melbourne to the Downs in seventy-six days; the

_Sapphire_ and _Pelham_, from Sydney, brought 14,668 ounces and 27,762

ounces respectively; the _Maitland_, from Sydney, followed with 14,326

ounces; the _Australia_, the first steamer that arrived from these

Colonies, next came in with a still larger quantity; and in December the

_Dido_ appeared with a cargo of gold-dust valued at £400,000.

Politically the Protectionists tried to turn these discoveries to some

account. They had predicted that Free Trade would ruin the country. On

the contrary, £6,000,000 of taxation had been remitted since 1846, and

yet there was no shrinkage of revenue. Exports had risen from

£58,000,000 to £78,000,000, the shipping trade was brisker than ever,

and on the 1st of January, 1853, there were not quite 800,000 paupers in

the country.[93] Even the landed interest could not pretend to have been

ruined, seeing that the Income Tax assessment under Schedule B, which

is levied on rents of agricultural land, had risen from £46,328,811 in

1845 to £46,681,488 in 1852. This tide of prosperity under Free Trade

seemed certain to flow rather than to ebb, so that the Tories were

taunted with the utter failure of their dismal Protectionist prophecies.

It need hardly be said that the Queen, who, as a strong Free Trader, had

watched with deep anxiety the result of the great revolution in fiscal

policy which she had helped Peel to initiate, was intensely gratified,

not to say relieved in mind, when the figures illustrating the

commercial condition of her realm were brought under her notice. The

Protectionists, however, had an answer to these facts. It was, they

averred, the unexpected discovery of gold in Australia that had saved

the country from the ruin which they predicted must come from Free

Trade. It may be pointed out that the figures we have given for the

purpose of showing how the trade of the country stood after 1846, cover

the period _before_, and not the period _after_, gold was imported from

Australia--a circumstance which the Queen and Prince Albert were quick

to note and appreciate. The Tory Protectionists, in fact, completely

misunderstood the effect which would be produced by any sudden increase

in the supply of gold. That effect was two-fold: (1) on the mother

country, and (2) on the Australian Colonies.

There is very little mystery about the effect of an increase in the

production of gold. The more we put into the market the less valuable

will it become. If we double the quantity of gold in circulation, it

follows that an article which could be bought for a sovereign will not

be sold for less than two sovereigns. The price of the article is thus

said to rise, whereas the value, or, properly speaking, the purchasing

power of the gold, for which it is exchanged, is said to fall. An

increase in the stock of gold ought, therefore, to lead to a rise in

prices, and to a fall or depreciation in the value of the metal. In 1853

some foolish persons therefore predicted that gold would soon be as

cheap as silver; and yet, though the supply was trebled, gold was not

trebly depreciated in value. “Undoubtedly some effect,” says Mr.

Walpole, “was consequently made on prices; but the effect was probably

only slowly and gradually felt. Gold was absorbed in vast and

unprecedented quantities in the arts, and the supply which was actually

available for barter was not immediately augmented to the same

degree.”[94] It is difficult to understand how so able a writer has been

led into an error which must vitiate every deduction drawn from the

effect of the Australian gold discoveries on the prosperity of the

English people, in the Victorian period. Nobody has ever been able to

estimate even approximately the amount of gold that is absorbed in the

arts. All that we know is that the amount is so small, that it could not

affect such an enormous increase in the supply as that which came from

Australia.[95] Besides, as gold did not fall much in value, it was not

likely that it would be much absorbed in the arts. But, then, what

became of all the gold that was so suddenly poured into England from

Australia? Some of it was absorbed in coinage,[96] but not enough to

account for the absorption of the vast quantity that remained. The key

to the puzzle is, in truth, to be found in the statistics of commerce

which we have already cited.

[Illustration: THE CONVEYING OF AUSTRALIAN GOLD FROM THE EAST INDIA

DOCKS TO THE BANK OF ENGLAND.

(_After the Engraving in the “Illustrated London News.”_)]

The value of gold was kept up in spite of the sudden increase in the

supply, because, under Free Trade, the commerce of the country began to

expand by leaps and bounds. The Australian supplies, in fact, were

absorbed in trade, for it is obvious that the sudden expansion of

business which followed from Free Trade must have caused a corresponding

demand for money, not only to conduct the operations of barter, but to

pay the wages of the additional workers who produced the articles sold

for money. When this fact is grasped, it is easy to understand what the

Australian gold discoveries did for England. Had no new supplies of gold

been found in 1853, Free Trade would have brought serious disasters in

its wake, but not precisely in the form predicted by the Tories. The

sudden expansion of trade would have caused a sudden demand for gold;

the value of gold must have risen. Supposing gold had thus doubled in

value, then the prices of commodities would have been halved, that is to

say, one hundred oxen would have sold only for as many sovereigns as

fifty sold for before the value of gold was thus increased. Everybody

who had to make a fixed money payment, such as rent or interest, would

have had their payment doubled, for they would have had to produce twice

as much to meet their obligations as originally sufficed for that

purpose. The burden of the National Debt, for example, would have been

doubled, for, to pay every pound’s worth of interest to the fundholder,

the public would have had to realise what represented two pounds’ worth

of wealth when the interest was first fixed. In fact, the only people

who would have gained, would have been the few who had to receive fixed

payments, at the expense of the many who had to make them. The discovery

of gold at a time when a liberated and expanding trade was causing an

increased demand for the metal was thus a providential coincidence. By

preventing the demand from outrunning the supply, it prevented a sudden

increase in the value of the metal, which must have reduced prices and

upset all the monetary arrangements of the country.

What was the effect of the discovery of gold on the Australian Colonies?

Very much the same as the discovery of rich deposits of any other

saleable ore, excepting in this respect, that gold is the one metal that

commands an immediate sale, at a high and very slightly varying price.

Land, Labour, and Capital are the three great requisites of production.

Of these Australia, prior to 1853, had only the first in abundance. The

gold mines attracted a rush of emigrants to Australia. But gold mining

is a lottery in which the prizes fall to the few. The average earnings

of the digger were soon found to be lower than the wages paid in other

employments. Hence crowds of men who had been attracted to the mines

soon left them, and were ready to follow other pursuits, so that the

gold rush gave Australia the second element in production--labour. But

the gold which was won, and the demands of the mining population, soon

stimulated industry and increased wealth in the Colonies--in other

words, the gold rush brought to Australia the third requisite of

production--capital.

The Australian gold discoveries, therefore, transformed an insignificant

penal settlement into a rich and queenly Commonwealth, and saved England

from the gold famine, with its disastrous fall in prices, which a sudden

expansion of trade must inevitably have produced after Protective duties

were abolished. There were, however, two shadows on the picture. The

gold rush to Australia depleted the labour market at home. The demands

of the Australian Colonies for British goods, after gold had been

discovered, were enormous. A sudden diminution in the supply of labour,

combined with a corresponding increase in the demand for the goods which

Labour produces, naturally led to a demand in England for increased

wages. Strikes broke out all over the country. Labour was scarce and

business brisk, and though the conflict was, except in rare cases,

unaccompanied by violence, it may be said that generally speaking

victory lay rather with the workers than with their masters. Wages were

forced up, which was perhaps fortunate, because, as the year wore on, it

soon became apparent that a bad harvest in England, France, and Germany

would seriously increase the price of food.[97] The enormous impetus

given to industry, and the rise in wages which followed, enabled skilled

labour to bear this increase in the price of bread. The unskilled

labourers, however, who from lack of organisation cannot “strike” with

much effect, suffered acutely, especially towards the end of the year.

But by that time a calamity was within measurable distance, which

diverted the minds of the English people from dear bread and bad

harvests. That calamity was the Crimean war, which rendered 1853 the

last year of “The Great Peace” which followed the battle of Waterloo.

[Illustration: STUDY OF A CHILD.

(_After an Etching by the Queen._)]

[Illustration: OFF THE COAST OF ASIA MINOR (TURKEY IN ASIA).]

The Life and Times of Queen Victoria; vol. 2 of 4 · 第 8 / 18 章