Volume I Part 9 (1/2)

February 12th, 1826 {p077}

The last three months have been remarkable for the panic in the money market, which lasted for a week or ten days--that is, was at its height for that ti for soacious politician who shall predict the termination of its effects

There is now no panic, but the greatest alar continuation of it The state of the City, and the terror of all the bankers and merchants, as well as of all owners of property, is not to be conceived but by those itnessed it This critical period drew forthliberality, as well as soreat wealth and parsimonious habits came and placed their whole fortunes at the disposal of their bankers in order to support their credit For reat and increasing; that a Bank restriction was expected by everyone So deterainst this measure, that rather than yield to it they suffered the Bank to run the greatest risk of stopping; for on the evening of the day on which the alarns left in the till[1] The next day gold was poured in, and fro (Lord Ashburton) stated in his paold of the Bank was drained to within a very few thousand pounds, for although the public returns showed a result rather less scandalous, a certain Saturday night closed with nothing worthIt was then that the Bank applied to Lord Liverpool for an Order in Council to suspend cash payment A conference took place between Lord Liverpool, Mr Huskisson, the governor of the Bank, and Mr Baring The suspension of cash payments was happily averted, chiefly as it was said by the accidental discovery of a box of one-pound Bank of England notes, to the amount of a million and a half, which had never been issued, and which the public were content to receive' Mr Tooke, however, states in his 'History of Prices' (Continuation, vol iv p 342) that the lowest a treasure was on the 24th of December, 1825: Coin, 426,000; bullion, 601,000: in all, 1,027,000 The passage in the text refers of course to the banking department only]

In the midst of all this the Emperor Alexander died, and after a short period of doubt concerning his successor it was found that Nicholas was to mount the throne The first act of the Russian Governer to delay a recognition of the independence of Greece, and their determination to support that measure if necessary by force of arms They invited us to co-operate in this object, but intimated that if ere not disposed to join theone to Russia, ostensibly to compliment the new Emperor, but really to concertthis measure into effect; and it is re leave of his friends and family to set out on this journey, was deeply affected, as if he had some presentiment that he should never return Alava told me that he had frequently taken leave of hiain, yet neither upon that occasion nor upon any other in the course of the seventeen years that he has known hihersh said that when he took leave of her the tears ran down his cheeks; he was also deeply affected when he parted from his ht in the House of Commons, when the Chancellor of the Exchequer[2] opened his financial plan, he is deeood one Robinson is probably unequal to the present difficult conjuncture; a fair and candid man, and an excellent Minister in days of calm and sunshi+ne, but not endoith either capacity or experience for these stororous measures by the reh it is the peculiar province of the Finance Minister to find a re that which the united wisdoree as to the existence of the evil, and all differ as to the causes of it and the measures which will effect its reh the difficulty; however, 'tihest day,' and probably the country hat is called right itself, and then great credit will be given to soht Hon Frederick John Robinson, Chancellor of the Exchequer from January 1823 to April 1827; afterwards Viscount Goderich and Earl of Ripon]

[Page Head: MR ROBINSON'S SMALL NOTES BILL]

February 20th, 1826 {p079}

The Small Notes Bill,[3] as it is called, lowered the funds and increased the alar the monied men Numerous were the complaints of the inefficacy of the measure for present relief, numerous the predictions of the ulti it into effect In the City, however, on Thursday afternoon things began to improve; there wasthe Chancellor of the Exchequer co one part of his plan, and authorising the Bank to issue one pound notes till October The immediate cause of this alteration was a communication which Hudson Gurney made to the Chancellor, that if he persisted in his Bill he should send up 500,000 which he had in Bank of England notes and change thens, and that all country bankers would follow his example From this he found that it would be ireat evil now is a want of circulating medium, and as the immediate effect of the measure would be another run upon the Bank, and that probably all the gold drawn froold--this evil would be increased tenfold The whole country is in distress fro medium for the common purposes of life; no country banker will issue notes, for they are instantly returned upon his hands and exchanged for gold The circulation of country notes being generally confined within a very limited extent, the holders of them can easily present theland paper will relieve the i froold will ensure the continuance of their circulation When old is not to be had without so much pain and trouble, they will be contented to take the notes to which they have been accustoood as that of the Bank of England, besides the advantage of being less exposed to the losses arising frouenerally thought that the Ministers have disgraced themselves by their precipitation and by the crudeness of theirthe present distress, or satisfying the minds of men, but the contrary Robinson is obviously unequal to the present crisis His ed, nor does he see in the dark

[3] [On the 10th of February the Chancellor of the Exchequer moved in Committee 'That all promissory notes payable on deland or by the Bank of England for less than 5 shall not be issued or circulated beyond the 5th of April next' Mr

Huskissonthat the inflation produced by the sreatly contributed to cause and aggravate the panic ('Huskisson's Speeches,'

vol ii p 444) Mr Baring, afterwards Lord Ashburton, opposed the restriction of small notes, but with small success The period allowed for the contraction of their circulation was, however, extended to the 10th of October]

Everybody knows that Huskisson is the real author of the finance reater anoed to propose and defend h not the apparent author The funds rose nearly two per cent, upon this alteration in the Bill before the House, on account of the prospect of an abundance ofwill be sufficient to relieve the present distress but an issue of Exchequer bills So great and absorbing is the interest which the present discussions excite that all men are becoed to have an opinion

February 24th, 1826 {p081}

I have been since yesterday the spectator of a ed in a sad office Arthur de Ros,[4] as taken ill a fortnight ago, becaht After this time he was scarcely ever sensible, and yesterday, at a quarter-past two, he expired After they had given up all hopes they were induced again to suffer them to revive from the disappearance of the most unfavourable symptoms; but this was only the weakness which preceded dissolution, and a few moments after his brother Henry had told me that he did not despair he came and said that all was over, and a little while after Rose announced that he had ceased to breathe He died tranquilly, and did not suffer at all I never saw such a distress His father, mother, sisters, William, and his ent immediately to Boyle Faro home He went first to Mrs ----, to whom Arthur had been attached for ten years, and after a painful intervieith her he came to his own house; he has since been too ill toand concentrated as his; it has exhausted his body and overwhelh I knew him to have been much attached to his brother, I did not believe his so acute as those which he has evinced Williae, unaccountable thing considering the characters of the two s so apparently deadened to the affections of this world, and the other with a sensibility so s, that the least thing affects him more deeply than very serious concerns do other men

[4] [Colonel the Hon Arthur John Hill de Ros, born 1793, died February 1826 He was aide-de-cahness the Duke of York]

Arthur was an excellent creature, and will be regretted by the Duke and deeply lamented by all who knew hiood sound sense, and was besides ree There breathed not a more honourable man, and as his ambition did not extend beyond the sphere in which fortune had placed him and he was contented with his destiny, but for this illness his career ht to sleep at the house, that it ht not appear to have been entirely abandoned to the care of servants The only wish he expressed was that Francis Russell should succeed him, which I have no doubt he will do

February 25th, 1826 {p082}

Received a letter from the Duke of York (to whom I had written to announce poor Arthur's death) expressive of the greatest regret for his loss

March 2nd, 1826 {p082}

I am just come from poor Arthur's funeral There were present William de Ros, the two Hills, Craufurd, Torrens, Taylor, Francis Russell, Caet The Duke appointed Francis his aide-de-cae Head: ILLNESS OF THE DUKE OF YORK]

July 2nd, 1826 {p083}