There was no difficulty in these negotiations as to the full and entire recognition of the independence of the States. The difficult points were but two—one regarding the fishery, and the other regarding the interests of the Royalists or Tories. The British Commissioners stood out strongly for the free permission of all who had been engaged in the war on the English side to return to their homes, and for the restitution of all property confiscated in consequence of such partisanship. The American Commissioners endeavoured to meet this demand by saying the recommendations of Congress would have all the effect that the English proposed. This the Commissioners regarded as so many words, and they insisted so determinedly on this head, that it appeared likely the negotiation would be broken off altogether. At last Franklin said they would consent to allow for all losses suffered by the Royalists, on condition that a debtor and a creditor account was opened, and recompense made for the damages done by the Royalists on the other side; commissioners to be appointed for the purpose of settling all those claims. The English envoys saw at once that this was a deception, that there would be no meeting, or no use in meeting, and they therefore abandoned the point; and the question of the fishing being in part conceded, the provisional articles were signed on the 30th of November, by the four American Commissioners on the one side, and by Mr. Oswald on the other. In the preamble it was stated that these articles were to be inserted in, and to constitute, a treaty of peace, but that the treaty was not to be concluded until the terms of peace had also been settled with France and Spain.

This proviso, however, by no means affected the treaty with America. This secret treaty was made binding and effectual so far as America and England were concerned. The first article acknowledged fully the independence of the United States. The second fixed their boundaries, much to the satisfaction of the Americans; and liberty was secured to them to fish on the banks of Newfoundland, in the Gulf of St. Lawrence, and wherever they had been accustomed to fish, but not to dry the fish on any of the king's settled dominions in America. By the fourth, fifth, and sixth articles it was engaged for Congress that it should earnestly recommend to the several Legislatures to provide for the restitution of all estates belonging to real British subjects who had not borne arms against the Americans. All other persons were to be allowed to go to any of the States and remain there for the settlement of their affairs. Congress also engaged to recommend the restitution of confiscated estates on the repayment of the sums for which they had been sold; and no impediments were to be put in the way of recovering real debts. All further confiscations and prosecutions were to cease. By the seventh and eighth articles the King of England engaged to withdraw his fleets and armies without causing any destruction of property, or carrying away any negro slaves. By these articles, the navigation of the Mississippi, from its source to the ocean, was to remain for ever free and open to both parties. If West Florida happened to be in the possession of Britain at the termination of a general peace, a secret article determined its boundaries.

Such were the conditions on which this great contest was finally terminated. The Americans clearly had matters almost entirely their own way, for the English were desirous that everything should now be done to conciliate their very positive and by no means modest kinsmen, the citizens of the United States. It was, in truth, desirable to remove as much as possible the rancour of the American mind, by concessions which England could well afford, so as not to throw them wholly into the arms of France. The conditions which the Americans, on their part, conceded to the unfortunate Royalists consisted entirely of recommendations from Congress to the individual States, and when it was recollected how little regard they had paid to any engagements into which they had entered during the war—with General Burgoyne, for example—the English negotiators felt, as they consented to these articles, that, so far, they would prove a mere dead letter. They could only console themselves with the thought that they would have protected the unhappy Royalists, whom Franklin and his colleagues bitterly and vindictively continued to designate as traitors. Franklin showed, on this occasion, that he had never forgotten the just chastisement which Wedderburn had inflicted on him before the Privy Council for his concern in the purloining of the private papers of Mr. Thomas Whateley, in 1774. On that occasion, he laid aside the velvet court suit, in which he appeared before the Council, and never put it on till now, when he appeared in it at the signing of the Treaty of Independence.

On the 5th of December Parliament met, and the king, though not yet able to announce the signing of the provisional treaty with France and America, intimated pretty plainly the approach of that fact. Indeed, Lord Shelburne had addressed a letter to the Lord Mayor of London eight days before the articles with America were actually signed, that this event was so near at hand that Parliament would be prorogued from the time fixed for its meeting, the 26th of November, to the 5th of December. It was, indeed, hoped that by that day the preliminaries with France and Spain would be signed too. This not being so, the king could only declare that conclusion as all but certain.

This announcement drew from the Opposition a torrent of abuse of Ministers, who, in reality, had only been carrying out the very measure which they had long recommended, and which Fox, in particular, had been seriously endeavouring to accomplish whilst in office. Their censures appeared to arise rather from the fact that the war was ended without their mediation than from anything else. Fox upbraided Lord Shelburne with having once said that, when the independence of America should be admitted, the sun of England would have set. Yet this had been the opinion not of Lord Shelburne merely, but of numbers who now saw reason to doubt that gloomy view of things, and there was the less reason for Fox to throw this in the face of the Prime Minister, as he had been himself, whilst his colleague, earnestly labouring with him for that end. Still he was naturally sore from Shelburne's successful intrigues against his diplomacy. On the 18th of December he moved for copies of such parts of the provisional treaty as related to American independence; but in this he was supported by only forty-six members.

On the 26th the Houses adjourned for a month, for the Christmas recess, and during this time the treaties with France and Spain made rapid progress. The fact of America being now withdrawn from the quarrel, coupled with the signs of returning vigour in England—Rodney's great victory and the astonishing defence of Gibraltar—acted as a wonderful stimulant to pacification. Spain still clung fondly to the hope of receiving back Gibraltar, and this hope was for some time encouraged by the apparent readiness of Lord Shelburne to comply with the desire, as Chatham and Lord Stanhope had done before. But no sooner was this question mooted in the House of Commons than the public voice denounced it so energetically, that it was at once abandoned. On the 20th of January, 1783, Mr. Fitzherbert signed, at Versailles, the preliminaries of peace with the Comte de Vergennes, on the part of France, and with D'Aranda, on the part of Spain. By the treaty with France, the right of fishing off the coast of Newfoundland and in the Gulf of St. Lawrence was restored, as granted by the Treaty of Utrecht; but the limits were more accurately defined. The islands of St. Pierre and Miquelon, on the coast of Newfoundland, were ceded for drying of fish. In the West Indies, England ceded Tobago, which France had taken, and restored St. Lucia, but received back again Grenada, St. Vincent, Dominica, St. Kitt's, Nevis, and Montserrat. In Africa, England gave up the river Senegal and the island of Goree, but retained Fort St. James and the river Gambia. In India, the French were allowed to recover Pondicherry and Chandernagore, with the right to fortify the latter, and to carry on their usual commerce. They regained also Mahé and the factory of Surat, with their former privileges. The articles in the Treaty of Utrecht, regarding the demolition of the fortifications of Dunkirk, were abrogated. Spain was allowed to retain Minorca and both the Floridas, but she agreed to restore Providence and the Bahamas. The latter, however, had already been retaken by us. She granted to England the right of cutting logwood in Honduras, but without the privilege of erecting forts or stock-houses, which rendered the concession worthless, for it had always been found that without these it was impossible to carry on the trade. With the Dutch a truce was made on the basis of mutual restoration, except as concerned the town of Negapatam, which Holland ceded. The preliminaries, however, were not settled till nearly eight months afterwards.

It was not to be wondered at that when, on the 24th of January, the preliminaries of peace were laid on the tables of the two Houses, there should be a violent denunciation of the large concessions made by Ministers. Spain had been granted better terms than in any treaty since that of St. Quentin. She had obtained the most desirable island of Minorca, with the finest port on the Mediterranean. She had got the Floridas, and had given up scarcely anything, whilst, had the British, now freed from the dead weight of America, pursued the war against her, she must soon have lost most of her valuable insular colonies. France had given up more, but she recovered very important territories which she had lost, and especially her settlements of Pondicherry and Chandernagore, in the East Indies; but America had conceded nothing, and yet had been allowed to determine her own frontier, and to share the benefits of the fishing all round our own Transatlantic coasts.

A new and surprising phenomenon was discovered in the attacks upon Ministers for these concessions: Fox and North were in coalition! Fox, who so lately had declared North and his colleagues men "void of every principle of honour and honesty," and who would consent, should he ever make terms with them, to be called "the most infamous of mankind," now as warmly declared that he had ever found Lord North—this man void of honour and honesty—a man always "open and sincere as a friend, honourable and manly as an enemy, above practising subterfuges, tricks, and stratagems." Lord North, on his side, repaid the compliments of Fox, growing enthusiastic on the genius, eloquence, and generous nature of that statesman. "While I admire the vast extent of his understanding," exclaimed North, "I can rely on the goodness of his heart." The coalition was looked upon with disfavour, but it was justified to a considerable extent during the debate on the peace. Lord John Cavendish truly represented that France and Spain were on the verge of ruin; that Holland was in an exhausted and helpless condition; and that as for America, it was in the very gulf of destitution, the people refusing to pay the taxes ordered by Congress for the continuance of the war. And it was to such defeated and demolished enemies that Ministers had conceded almost everything they had asked. Lord North turned more particularly to the concession made to the French in the East Indies. It was in that quarter, he said, that he looked for a consolidated and expanding empire, calculated to recompense us, and more than recompense us, for the loss of America. From that splendid continent we had completely driven the French, and the soundest policy dictated their continued firm exclusion from it. Yet here had Ministers most fatally readmitted them, to renew their old plots and alliances against us, by which they would to a certainty continue to harass, thwart, and weaken us, till we once more went through the ruinous and sanguinary process of expulsion. He was equally severe on the surrender of Minorca and the Floridas to Spain, and the admission of the unconceding, unconciliating Americans to our own proper fishing grounds. Fox called on Ministers to produce the treaty which he had sketched a few months before, and to see what very different terms he had demanded, and would have exacted. That the sense of the House went with these sentiments was shown by both the amendments of the Coalition being carried by a majority of sixteen. Lord John Cavendish moved another resolution strongly condemning the terms of the treaty, but consented that the peace now made should remain inviolate. This was also carried, by a majority of seventeen, being two hundred and seven votes against one hundred and ninety.

This majority of the Coalition compelled Lord Shelburne to resign; but the rest of the Administration remained in their places, in the hope that Pitt would now take the Premiership. In fact, the king, on the 24th of February, sent for Pitt and proposed this to him; but Pitt was too sensible of the impossibility of maintaining himself against the present combination of parties. The next day Dundas moved and carried an adjournment for three days, to give time for the arrangement of a new Cabinet. Pitt continued to persist in declining to take the Premiership, and on the 2nd or 3rd of March the king sent for Lord North. His proposal was that North should resume the management of affairs; but North insisted on bringing in his new friends, and to that the king objected. Matters remained in this impracticable condition till the 12th, when the king sent for North, and proposed that the Duke of Portland should be asked to form an Administration; but this did not at all advance matters, for Portland was equally determined with North to maintain the Coalition, and the king was resolved to have nothing to do with Fox, whilst Fox was equally determined not to admit the king's friend, Lord Stormont, to any Cabinet of which he was a member. On the 31st the announcement was made that Pitt had resigned, and that the king was prepared to submit to the terms of the Coalition. George, with deep and inward groans, submitted himself once more to the slavery of the great Whig houses, and, as some small recompense, the Coalition admitted Lord Stormont to a place in the Cabinet.

The new Administration arranged itself as follows:—The Duke of Portland, First Lord of the Treasury; Lord North, Home Secretary; Fox, Secretary for Foreign Affairs; the Earl of Carlisle, Privy Seal; Lord John Cavendish, again Chancellor of the Exchequer; Admiral Lord Keppel, the head of the Admiralty again; Lord Stormont, President of the Council; the great stumbling block, Thurlow, removed from the Woolsack, and the Great Seal put into commission; Burke again Paymaster of the Forces, and his brother Richard as Secretary to the Treasury in conjunction with Sheridan. Such was this strange and medley association, well deserving Burke's own description of a former Administration, as of a strange assemblage of creatures, "all pigging together in one truckle-bed." Those who formed exclusively the Cabinet were Portland, North, Fox, Cavendish, Carlisle, Keppel, and Stormont, so that the great Whigs had taken care again to shut out Burke, who was only a man of genius. Such an incongruous company could not long hold together. The king did not conceal his indignation at seeing Fox in office; the whole Court openly expressed its loathing of the anomalous union; the country had no confidence in it; Fox felt that he had wounded his popularity by his sudden and violent change.

At first the course of affairs was not eventful. On the 7th of May Pitt moved a series of resolutions as the basis of a Bill for reform of Parliament. The main features of this scheme were those of taking measures against bribery and corruption; the disfranchisement of boroughs when a majority of the electors was proved corrupt; and the addition of a hundred new members to the House of Commons, nearly all of them from the counties, except an additional member or two from the metropolis.

On the 23rd of June the king sent down a message to the Commons, recommending them to take into consideration a separate establishment for the Prince of Wales, who had arrived at the age of twenty-one. This young man, whose whole career proved to be one of reckless extravagance and dissipation, was already notorious for his debauched habits, and for his fast accumulating debts. He was a great companion of Fox, and the gambling roués amongst whom that grand orator but spendthrift man was accustomed to spend his time and money, and therefore, as a pet of this Coalition Ministry, the Duke of Portland proposed to grant him one hundred thousand pounds a year. The king, alarmed at the torrent of extravagance and vice which such an income was certain to produce in the prince's career, declared that he could not consent to burden his people, and encourage the prince's habits of expense, by such an allowance. He therefore requested that the grant should amount only to fifty thousand pounds a year, paid out of the Civil List, and fifty thousand pounds as an outfit from Parliamentary funds. The Ministers were compelled to limit themselves to this, though the saving was merely nominal, for the debts on the Civil List were again fast accumulating, and the prince was not at all likely to hesitate to apply to Parliament to wipe off his debts, as well as his father's when they became troublesome to him. Resenting, however, the restraint attempted to be put upon him by his father, the prince the more closely connected himself with Fox and his party, and the country was again scandalised by the repetition of the scenes enacted when Frederick, Prince of Wales, father of George III., was the opponent of his own father, George II., and the associate of his opponents. Such, indeed, had been the family divisions in every reign since the Hanoverian succession. On the 16th of July Parliament was prorogued.

The regathering of Parliament, on the 11th of November, was distinguished by two circumstances of very unequal interest. The Prince of Wales, having arrived at his majority, took his seat as Duke of Cornwall, as it was well known, intending to vote for a great measure which Fox was introducing regarding India. We shall now almost immediately enter on the narration of the important events which had been transpiring in India during the American war. It is sufficient here to observe that these were of a nature to give the most serious concern and alarm to all well-wishers of the country, and of the unfortunate natives of that magnificent peninsula. Fox's measure for the reform and restraint of the East India Company was comprehended in two Bills, the first proposing to vest the affairs of the Company in the hands of sixteen directors, seven of them to be appointed by Parliament, and afterwards sanctioned by the Crown, and nine of them to be elected by the holders of stock. These were to remain in office four years; the seven Parliament nominees to be invested with the management of the territorial possessions and revenues of the Company; the nine additional to conduct the commercial affairs of the Company under the seven chief directors; and both classes of directors to be subject to removal at the option of the king, on an address for the purpose from either House of Parliament. The second Bill related principally to the powers to be vested in the Governor-General and Council, and their treatment of the natives.

The Bills were highly necessary, and, on the whole, well calculated to nip in the bud those ever-growing abuses of India and its hundred millions of people which, some seventy years later, compelled Government to take the control out of the hands of a mere trading company, whose only object was to coin as much money as possible out of the country and the folk. But it needed no sagacity to see that the means of defeat lay on the very surface of these Bills. Those whose sordid interests were attacked had only to point to the fact that Parliament, and not the Crown, was to be the governing party under these Bills, in order to secure their rejection. This was quickly done through a most ready agent. Thurlow had been removed by the Ministry from the Woolsack, where he had remained as a steady opponent of all the measures of his colleagues; and it required but a hint from the India House, and he was at the ear of the king. Nothing was easier than for Thurlow to inspire George III. with a deep jealousy of the measure, as aiming at putting the whole government of India into the hands of Parliament and of Ministers, and the effect was soon seen.

Fox introduced his first Bill on the 20th of November. All went smoothly, and the second reading was ordered for that day week. Then the storm burst. Mr. Grenville (afterwards Lord Grenville) described the Bill as a scheme to put the Company into the hands of Ministers, and to annihilate the prerogatives of the Crown at the same time. He denounced it as one of the most daring and dangerous attempts that had ever been brought into that House. He moved that it should lie over till after Christmas, and there was a strong phalanx ready to support him. Grenville did not press the motion to a division, and the Bill was read a second time on the 27th, when a vehement and long debate took place. Pitt put forth his whole strength against it, Fox for it, and it was carried by two hundred and twenty-nine votes against one hundred and twenty. On the 1st of December it was moved that the Bill be committed, when the Opposition was equally determined. On this occasion Burke, who had made himself profoundly acquainted with Indian affairs, took the lead, and delivered one of his very finest speeches, full of information and eloquence. Pitt resisted the going into Committee with all his power, and pledged himself, if the House would throw out the Bill, to bring in another just as efficacious, and at the same time devoid of its danger. The debate, like the former one, did not close till half-past four in the morning, and then it was with a triumphant majority of two hundred and seventeen against one hundred and three. The Bill, thus carried by such majorities through the Commons, was carried up to the Lords, on the 9th of December, by Fox, accompanied by a numerous body of the Commoners, and it was considered as certain of passing there; but the king and his party, exasperated at the resolute conduct of the Commons, had gone to such lengths to quash the Bill in the Lords as are rarely resorted to by the Crown. As in the Lower House, so here, it was allowed to be read the first time without dividing; but it was attacked with an ominous solemnity by Thurlow, the Duke of Richmond, and Lord Temple, who, since his recall from the Lord-Lieutenancy of Ireland, had thrown himself into the Opposition with peculiar vivacity. It was known that he had been frequently closeted with the king of late, and he bluntly declared the Bill infamous. As a matter of fact, he had urged the king to use his personal influence with the House of Lords. Thurlow went further, and, fixing one of his most solemn glances on the Prince of Wales, who was sitting in the House to vote for the Bill, declared that if this measure passed, the crown of England would not be worth wearing; and that if the king allowed it to become law, he would, in fact, have taken it from his head and put it on that of Mr. Fox. On the 15th, when the Bill was proposed for the second reading, the royal proceedings against it were brought at once to light. The Duke of Portland rose and said, before going into the question, he was bound to notice a report which was confidently in circulation, and which, if true, vitally affected the constitution of the country. This was no less than that the king had written a note to Lord Temple, stating that "his Majesty would deem those who voted for the Bill not only not his friends, but his enemies; and that if Lord Temple could put this into still stronger language, he had full authority to do so."

The Duke of Richmond read a paragraph from a newspaper in which the report was stated, naming Lord Temple without any disguise. On this Temple rose, and admitted that he had given certain advice to the king, but would neither admit nor deny that it was of the kind intimated in the report. That the rumour was founded on truth, however, was immediately shown by the division. Numbers of lords who had promised Ministers to vote for the Bill withdrew their support; the Prince of Wales declined voting; and the Opposition carried a resolution for adjournment till the next day, in order to hear evidence in defence of the East India Company. It was clear that the Bill had received its death-blow, and would never pass the Lords after this expression of the royal will, and on the 17th of December it was lost by nineteen votes.

Fox was very indignant, and made no scruple of attributing the conduct of the king, not to mere report, but to fact. "There is," he said, "a written record to be produced. This letter is not to be put in the balance with the lie of the day;" whereupon he pulled from his pocket a copy of the note said to have been written by the king to Lord Temple. When he sat down, Mr. Grenville rose and stated that he had taken down the words read as the king's note, and had shown them to his relative, Lord Temple, who had authorised him to say that such words had never been made use of by him. But Fox demanded whether Lord Temple had not used words to that effect, and Grenville was silent. Fox continued in a very fierce strain, denouncing back-stairs lords and bedchamber politicians, and declared that the best-meant and best-concerted plans of Ministers were subject to the blasting influence of a villainous whisper. He added that he could not continue in office any longer consistently either with his own honour or the interests of the nation. He felt that he was goaded to it, and upbraided for not resigning instantly; but a very honourable majority of that House stood pledged to a great measure, and Ministers were equally bound not to abandon the affairs of State in the midst of so much anarchy. These last words, and the division, which was nearly two to one in favour of Ministers, left it doubtful, after all, whether Fox and his colleagues would resign. As such language, however, could not be used by Ministers with impunity, and a dissolution of the Cabinet was probable, Erskine moved a resolution, pledging the House to persevere in the endeavour to remedy the abuses in the government of India, and declaring "that this House will consider as an enemy to this country any person who shall presume to advise his Majesty to prevent, or in any manner interrupt, the discharge of this important duty." All strangers were excluded, but it was ascertained that the motion was severely censured as an invasion of the king's prerogative; yet the resolution was carried by one hundred and forty-seven votes against seventy-three.

Strong as was the majority of Ministers, however, the king did not wait for their resigning. The day after this debate (Thursday, December 18th), the king sent, at twelve o'clock at night, to Fox and Lord North an order to surrender their seals of office to their Under-Secretaries, as a personal interview, in the circumstances, would be disagreeable. Fox instantly delivered up his; but Lord North was already in bed, and had entrusted his seal to his son, Colonel North, who could not be found for some time. The Seals were then delivered to Lord Temple, who, on the following day, sent letters of dismissal to all the other members of the coalition Cabinet. Pitt, though in his twenty-fifth year only, was appointed first Lord of the Treasury and Chancellor of the Exchequer, and on him devolved the duty of forming a new Administration. Earl Gower was nominated President of the Council, and Lord Temple one of the Secretaries of State. When the House of Commons met in the afternoon, Fox imagined, from a motion of Dundas to proceed to business without the usual adjournment on Saturday, that it was the object of the new party to pass certain money Bills, and then resort to a dissolution. Fox opposed the motion, declaring that a dissolution at this moment would produce infinite damage to the service of the nation, and that, should it take place in order to suit the convenience of an ambitious young man (meaning Pitt), he would, immediately on the meeting of the new House, move for an inquiry into the authors and advisers of it, in order to bring them to punishment. This caused Lord Temple, who had occasioned the breaking up of the Coalition, to resign again immediately, declaring that he preferred meeting any aspersions upon him in his private and individual capacity. This certainly removed a great danger from his colleagues, although it rendered the task of his friend and relative, Pitt, still more difficult, in having to form an Administration alone. The Ministry was then filled up thus:—Lord Sydney, Secretary of State for the Home Department; the Marquis of Carmarthen for the Foreign; the Duke of Rutland, Lord Privy Seal; Lord Gower became President of the Council; the Duke of Richmond, Master-General of the Ordnance; Lord Thurlow again Chancellor; Lord Howe, First Lord of the Admiralty. With the exception of Pitt, the whole of the Cabinet was drawn from the House of Lords. When the Commons met, on the 22nd, Mr. Bankes said he was authorised by Mr. Pitt, who was not in the House, a new writ for Appleby being moved for on his appointment to office, to say that he had no intention to advise a dissolution. His Majesty, on the 24th of December, having also assured the House that he would not interrupt their meeting after the recess by either prorogation or dissolution, the House adjourned till the 12th of January, 1784.

When Parliament reassembled, Fox seized the very earliest moment to address the Chair and occupy the attention of the House. He rose at the unusually early hour of half-past two o'clock in the day, before the newly returned members had taken their oaths. Pitt himself was in this predicament, but, as soon as he had taken his oath, he rose to speak; but Fox contended that he was already in possession of the House, and, though Pitt announced that he had a message from the king, Fox persisted, and moved that the House should go into committee on the state of the nation. This allowed Pitt to speak, who declared that he had no objection to the committee; but he thought it more advisable to go into the question of India, on which subject he proposed to introduce a Bill. He then made some sharp remarks on the conduct of Fox in thus seizing, by artifice, a precedence in speaking, and on the petulance and clamour which the Opposition had displayed, and on the violent and unprecedented nature of their conduct, by which they hoped to inflame the spirit of the country and excite unnecessary jealousies. In truth, Fox and his party were now running a most unwise career. Possessed of a large majority, they were indignant that the king should have dismissed them, and thought that they could outvote the new Ministry, and drive them again from office. They had, no doubt, such a majority; but, at the same time, they had the king resolute against them. They had insulted him by their violent denunciations of his letter, and they had not, in their anger, the discernment to perceive that not only would this be made use of by their opponents to injure them, both in Parliament and out of it, but their proceeding with so much heat and violence was calculated to make them appear factious—more concerned for their places than for the interests of the country. All this took place; the king and Ministry saw how all this would operate, and calmly awaited its effects. Fox and his party were, however, blind to the signs of the times, and carried no less than five resolutions against the Government.

When the House met again, Pitt moved for leave to bring in his Bill for the better government and management of the affairs of the East India Company. He was aware, he said, how certain men would triumph when he informed them that he had based his intended measures on the resolutions of the proprietors of India stock. He was so miserably irresolute, he said, as not to venture on a Bill founded on violence and disfranchisement. He was so weak as to pay respect to chartered rights; and he had not disdained, in proposing a new system of government, to consult those who had the greatest interest in the matter, as well as the most experience in it. These were all hard hits at Fox and his party. In his Bill he went on the principle of placing the commerce of India chiefly under the control of the Company itself; but the civil and military government, he admitted, required some other control than that of the Company, yet even this, in his opinion, ought to be established in accordance with the convictions of the Company. In truth, it was a Bill rather calculated to win the good will of the East India Company than to reform the abuses of that body and to protect the interests of the natives. Fox, with as much truth as personal feeling, designated the Bill as the wisdom of an individual opposed to the collective wisdom of the Commons of England.

The Bill was suffered to pass the second reading, but was thrown out, on the motion of its being committed, by two hundred and twenty-two against two hundred and fourteen. Fox then gave notice of his intention of bringing in a new Bill of his own on India, and demanded to know from the Ministers whether he might expect to proceed in security with it, or whether the House would be dissolved. Pitt did not answer; the question was repeated by other members, but Pitt continued silent, till General Conway said it was a new thing to see a Minister sitting in sulky silence, and refusing to satisfy the reasonable desires of the House. This brought out Pitt with an indignant denial; but he preserved silence as to the probability of a dissolution.

These party tactics were continued with unwonted heat by the Opposition on all occasions, till the House adjourned for three days, to meet again on the 29th, the Opposition revelling in large majorities, though they were aware that both the king and the House of Lords were adverse to them. But the country was also growing weary of this unsatisfactory position of things, and began to sympathise with the great patience of Pitt rather than the tumultuous conduct of Fox and his friends. Pitt, however, was strong in the assurance of the adhesion of the Crown and the peerage, and saw unmistakable signs of revulsion in the feeling of the public. The majorities of the Commons were becoming every time less, and on the 16th of February the Corporation of London had presented a strongly expressed address to the king, declaring its approval of the late dismissal of Ministers, and its opinion that the India Bill of Fox was an encroachment on the prerogative of the Crown. Dr. Johnson also regarded it as a contest whether the nation should be ruled by the sceptre of George III. or by the tongue of Mr. Fox.

Fox saw the growing change with alarm. He saw that all their resolutions and addresses produced no effect on the Ministerial party; and he did not dare to go further and pass a Bill, either legislative or declaratory, for he felt that the Lords would throw it out; and to stop the supplies, or delay the Mutiny Bill would probably disgust and annihilate the very majority on which he depended. In these circumstances, he probably saw with satisfaction an attempt at coalition. Mr. Grosvenor, the member for Chester, during the three days of the adjournment, called a meeting of members of both parties for the purpose of seeing whether a coalition could not be formed, and thus put an end to this violent contest. About seventy members met, and an address to the Duke of Portland and Mr. Pitt was signed by fifty-four. Pitt expressed his readiness to co-operate in such a plan, but the Duke of Portland declared that the first indispensable step towards such a measure must be the resignation of Ministers. This put an end to all hope of success.

The feelings of the constituencies were undergoing a speedy change, and the fact was now being rapidly proved. For three months, whilst the Opposition in the House of Commons were exulting on their majority, the majority amongst the people was sliding from them; and, whilst they were straining every nerve to prevent the dissolution of Parliament, they were only more securely preparing their own fall, for Pitt and the Government had been zealously at work undermining them. The nation was pleased at his bravery, and at his disinterestedness in refusing the sinecure of the Clerkship of the Pells, though his private means were scarcely £300 a year.

From the 11th of February to the 1st of March the struggle went on, many endeavours being made, but without effect, to come to an agreement between the parties. On the last day Fox moved that an Address be carried up to the king by the whole House, representing the violence done to the Constitution by a Minister retaining his place after a vote of want of confidence by the Commons, and insisting strongly on the right and duty of that House to advise his Majesty on the exercise of his prerogative. Pitt replied that, by attempting to force the king to decide contrary to his judgment, they were placing the sceptre under the mace; but the resolution was carried by a majority, though of twelve only, and on the 4th the Address was carried up, when the king repeated that his sentiments remained the same. Fox, on the return of the House, moved that this answer should not be taken into consideration before the 8th, and till then the Mutiny Bill should remain in abeyance. His object was to stave off a dissolution until the 25th, when the Mutiny Bill expired. By refusing to renew it, he hoped to force his rival to resign. The House on the 8th was excessively crowded, for a very warm debate was anticipated. When it came to divide about midnight, Fox was found to have carried his resolution, but only by a majority of one. This was the climax of defeat. The once triumphant Opposition saw that all was over with them, and they gave up the contest.

The supplies and the Mutiny Bill were now passed without much difficulty, but Ministers did not venture to introduce an Appropriation Bill. On the 23rd, Lord North, stating that the dissolution of Parliament was confidently asserted out of doors, declared that such a dissolution, without passing an Appropriation Bill, would be an unparalleled insult to the House. He expressed his astonishment that the Minister did not condescend to utter a syllable on the subject of the proposed change. Pitt, now confident of his position, replied that gentlemen might ask as many questions as they pleased; that he had adopted a course which was advantageous to the country, and did not feel bound to enter then into any explanations. All mystery, however, was cleared up the next day, for the king went down to the House of Lords and prorogued Parliament, announcing that he felt it his duty to the Constitution and the country to convoke a new Parliament. Accordingly, on the following day, the 25th of March, he dissolved Parliament by proclamation.

When the new Parliament met, on the 18th of May, it was seen how completely Fox and North had destroyed their prestige by their late factious conduct, and how entirely Pitt had made himself master of the situation. His patience and cool policy under the tempestuous assaults of the Opposition had given the country a wonderful confidence in him. One party extolled him as the staunch defender of the prerogative, another as the champion of reform and enemy of aristocratic influence. Not less than one hundred and sixty of the supporters of the late Coalition Ministry had been rejected at the elections, and they were held up to ridicule as "Fox's Martyrs."

CHAPTER XIII.

Before this great measure had passed, Pitt had introduced his Budget. On the 30th of June he made his financial statement. He said that the resources of the country were in a very burthened and disordered state; but that was not his work, but the work of his predecessors. The outstanding arrears, owing to the late war, were already ascertained to amount at least to fourteen million pounds. These operated very injuriously on the public credit, being at a discount of from fifteen to twenty per cent.; and that without greatly affecting the public securities, he should not be able to find more than six million six hundred thousand six hundred pounds of them at once. To meet the interest, he proposed to raise taxes to the amount of nine hundred thousand pounds a year. The imposts—some entirely new, and some augmented—were on hats, ribbons, gauzes, coals, saddle and pleasure horses, printed linens and calicoes, candles, paper, and hackney coaches; licences to deal in excisable commodities, bricks, and tiles; licences for shooting game.

The duties on bricks and tiles were opposed, as affecting brick-makers rather than the public, because stones and slates were not included. These duties were, however, carried, and the Bill passed; but great discontent arising regarding the duties on coals and on licences to deal in excisable commodities, the Chancellor of the Exchequer was obliged to produce a supplementary Budget, and, after withdrawing these, to lay others on the sale of ale, gold and silver plate, the exportation of lead, and postage of letters, at the same time limiting the privilege of franking. It was high time that the latter practice were put under regulation, for the privilege was enormously abused. Till this time, a simple signature of a member of Parliament, without name of the post town whence it was sent, or date, freed a letter all over the kingdom. Many persons had whole quires of these signatures, and letters were also addressed to numbers of places where they did not reside, so that, by an arrangement easily understood, the persons they were really meant for received them post-free. The loss to Government by this dishonest system was calculated at one hundred and seventy thousand pounds a year. By the present plan, no member was to permit any letter to be addressed to him except at the place where he actually was; and he was required, in writing a frank, to give the name of the post town where he wrote it, with the dates of day and year, and to himself write the whole address.

On the 20th of August the Appropriation Bill and other measures of routine having been carried through with great triumph by the Ministry, the king prorogued the Parliament, which did not meet again till the 25th of January following. Fox came into the new Parliament in a very remarkable and anomalous position. In the election for Westminster, the candidates had been, besides himself, Admiral Lord Hood and Sir Cecil Wray. The election was of the most violent kind, distinguished by drunkenness, riot, and gross abuses. It continued from April the 1st to the 16th of May, and the numbers on the poll-books, at its termination, stood as follows:—For Lord Hood, 6,694; for Fox, 6,233; for Sir Cecil Wray, 5,598. The Prince of Wales had shown himself one of the most ardent partisans of Fox, all the more, no doubt, because Fox was detested by the king. The prince had displayed from his carriage the "Fox favour and laurel," and, at the conclusion of the poll, had given a grand fête at Carlton House to more than six hundred Foxites, all wearing "blue and buff." The Duchess of Devonshire and other lady politicians also gave Fox substantial help. But Fox was not allowed to triumph so easily. The Tory candidate, Sir Cecil Wray, as was well understood, instigated and supported by the Government, demanded a scrutiny; and Corbett, the high bailiff, in the circumstances, could make no return of representatives for Westminster. As a scrutiny in so populous a district, and with the impediments which Government and its secret service money could throw in the way, might drag on for a long period, and thus, as Government intended, keep Fox out of Parliament, he got himself, for the time, returned for a small Scottish borough, to the no small amusement of his enemies.