Foiled in these quarters, Alberoni appeared more successful in the North. A negotiation had been opened between the two potentates, so long at bitter variance, the Czar and Charles XII. of Sweden. They were induced to meet in the island of Åland, and to agree that the Czar should retain Livonia, and other Swedish territories south of Finland which he had torn from Sweden, but, in compensation, Charles was to be allowed to reconquer Bremen and Verden from George of Hanover and England, and Norway from Denmark; and the two monarchs were to unite their arms for the restoration of Stanislaus to the throne of Poland, and of the Pretender to that of Great Britain. The success of these arrangements appeared to Alberoni so certain that he boasted that the Northern tempest would burst ere long over England with annihilating fury; but even here he was doomed to disappointment. Charles XII. delighted in nothing so much as in wild and romantic enterprise. Such was that of the conquest of Norway; and he was led by his imagination to commence it without delay. With his characteristic madness, he divided his army into two parts, with one of which he took the way by the coast of Norway, and the other he sent over the mountains at the very beginning of winter. There that division perished in the snow amid the most incredible horrors; and he himself, whilst carrying on the siege of Frederickshall, was killed on the 11th of December, as appears probable, by the treacherous shot of a French engineer in his service. Almost simultaneously the Duke of Maine's conspiracy against the French Government was detected, and he and his wife, together with the Spanish Ambassador, were apprehended. There was nothing for it on the part of the Regent but to proclaim war against Spain—a measure which England had long been urging on him. The English declaration appeared on the 28th of December, 1718, and the French on the 9th of January, 1719.

In the session of 1719 Stanhope and his colleagues tried to undo the arbitrary measures of 1711 and 1714—the Occasional Conformity Bill and the Schism Bill. Stanhope would have made a strenuous effort to abolish not only these laws, but the Test Act itself; but Sunderland, though equally liberal, was more prudent, and showed that, to attempt too much was to ruin all; and when they came to introduce their greatly modified measure—that of annulling only some of the less prominent clauses of the Test Act under the name of a Bill for strengthening the Protestant interest—they found so much opposition that Sunderland's discernment was fully justified. Not only the two archbishops and some of the bishops opposed the measure, but the great Whigs, the Duke of Devonshire and Earl Cowper. Cowper, though he expressed himself willing to abolish the Schism Bill, stood stoutly for the Test and Corporation Acts as the very bulwarks of our constitution in Church and State; whilst the Earl of Islay declared even this moderate measure a violation of the union with Scotland. On the other hand, the Bishops Hoadley, Willis, Gibson, and Kennett supported the Bill, which, however, was not carried without considerable mutilation; and had Stanhope introduced such a measure as he proposed, including even considerable relief to Catholics, the whole would have been lost.

Parliament was prorogued on the 18th of April, and the king soon after set out for his German dominions, taking Stanhope along with him, and his mistress, the Duchess of Kendal. In appointing the Regency to administer affairs in the king's absence, the Prince of Wales was entirely passed over, to his great indignation; nor were he and the Princess allowed to hold levees, that duty being assigned to the young princesses, to the great scandal of the public, and further exposure of the discord raging in the Royal family. Even during the session the ministers had brought in a Bill to "settle and limit the Peerage in such a manner that the number of English peers should not be enlarged beyond six of the present number (178), which, upon failure of male issue, might be supplied by new creations; that, instead of the sixteen elective peers of Scotland, twenty-five should be made hereditary on the part of that kingdom; and that this number, upon failure of heirs male, should be supplied from the other members of the Scottish Peerage." Both the king and ministers flattered themselves that they should carry this Bill, and thus fetter the Prince of Wales when he came to the throne. The king was desirous to do this out of sheer jealousy and hatred of his own son, and the ministers, Sunderland in particular, out of dread of his vengeance in that case; for, if he created a dozen peers at a time, as Anne had done, he could easily swamp the Whigs and put the present ministers in peril of impeachment. But though the Whigs had been clamorous against the act of Anne, some of them now, Cowper and Townshend at their head, as vehemently denounced this measure as a gross infringement of the royal prerogative. The debate became very bitter, and many friendships were broken up by it, amongst others that of Addison and Steele, who took different sides; but the Bill was finally dropped, through the vigorous opposition offered to it by Walpole.

Scarcely had Parliament ceased to sit, and the king was gone to spend the summer months in Germany, when the vigilance of the Ministry was demanded to ward off a fresh invasion. Alberoni, defeated in his schemes on France, and his hopes of the invasion of England by Charles XII. crushed by that monarch's death, determined now to make a grand effort to support the Pretender himself. For this purpose, he invited him to Spain, and at the same time began the equipment of a formidable fleet to carry over a Spanish force, under the command of the Duke of Ormonde, to the shores of Britain. The Pretender was not intended to accompany the expedition, but to be in readiness to follow on the first news of its successful landing. But it was no more destined to reach these shores than the Grand Armada. It has always been the fate of invading squadrons to encounter providential tempests in coming hitherward, and the usual hurricane was ready to burst. Scarcely, indeed, had the fleet lost sight of Cape Finisterre before the storm swooped down upon it. For twelve days the terrible Bay of Biscay was swept by a frightful wind, which drove the vessels in all directions, and rendered it impossible to manage them. Fortunate would it have been if every vessel had failed to reach the shores at which they aimed; but two vessels, on board of which were the Earls Marshal and Seaforth, and the Marquis of Tullibardine, accompanied by about three hundred Spanish soldiers, reached Scotland, and landed, on the 16th of April, at Kintail, in Ross-shire. In the hope that Ormonde would still reach England, this small force lay quiet for some time, and so little did they excite notice, that the Government imagined that they had re-embarked. Their presence there, however, had the mischievous effect of exciting some few of the Highlanders to join them. They seized Donan Castle, and thus attracted the attention of the English. Some vessels of war arrived upon the coast. The castle was speedily retaken, and Lord Carpenter, the commander of the forces in Scotland, sent some troops from Inverness against them. General Wightman, the officer thus despatched, was attended by about a thousand men, and found the enemy, now swollen to about two thousand, strongly posted at Glenshiel. He immediately attacked them, and the miscellaneous force speedily dispersed. The Highlanders, who knew the country, rapidly disappeared amongst the hills, and the Spaniards had no other resource than to lay down their arms.

Alberoni now found himself in turn attacked by France. Whilst busying himself to repair a few of the shattered ships which had escaped from the tempest, in order to harass the coast of Brittany in conjunction with the malcontents there, he beheld an army of thirty thousand French menacing the Pyrenean frontier. War having begun, the Spaniards were utterly defeated by the French in Spain and by the Austrians in Sicily, thanks to the zealous co-operation of the British fleet under Admiral Byng. At length Philip was compelled to dismiss Alberoni.

The King of Spain hoped, by the dismissal of Alberoni, to obtain more advantageous terms of peace from France and England; but they still stood firmly to the conditions of the Quadruple Alliance. On the 19th of January, 1720, the plenipotentiaries of England, France, and Holland signed an engagement at Paris not to admit of any conditions of peace from Spain contrary to those of the alliance. Stanhope despatched his secretary, Schaub, to Madrid, to endeavour to bring over the queen to this agreement, and Dubois sent instructions to the Marquis Scotti, Father d'Aubenton, and others in the French interest to press the same point. She stood out firmly for some time, but eventually gave way, and the mind of the king was soon influenced by her. Some difficulties which could not be overcome were referred to a congress to be held at Cambray. On the 26th of January Philip announced his accession to the Quadruple Alliance, declaring that he gave up his rights and possessions to secure the peace of Europe. He renewed his renunciation of the French Crown, and promised to evacuate Sicily and Sardinia within six months, which he faithfully performed.

By the firmness of the Allies a peace which continued twelve years was given to Europe, and the storm which Alberoni had so fondly expected out of the North was as completely dissipated. The new Queen of Sweden had consented to yield absolutely to George I., as King of Hanover, the disputed possession of Bremen and Verden. Poland was induced to acknowledge Augustus of Saxony as king, and Prussia to be satisfied with the acquisition of Stettin and some other Swedish territory. But the Czar and the King of Denmark, seeing Sweden deprived of its military monarch, and exhausted by his wild campaigns, contemplated the actual dismemberment of Sweden. The Queen of Sweden threw herself for protection on the good offices of the King of England, and both England and France agreed to compel the Czar and the King of Denmark to desist from their attacks on Sweden if they would not listen to friendly mediation. Lord Carteret, a promising young statesman, was sent as ambassador to Stockholm, and Sir John Norris, with eleven sail of the line, was ordered to the Baltic. Russia and Denmark, however, continued to disregard the pacific overtures of England, trusting to there being no war with that Power. They ravaged the whole coast of Sweden, burning above a thousand villages, and the town of Nyköping, the third place in the kingdom. Seeing this, Lord Stanhope, who was still at Hanover with the king, sent orders to Admiral Norris to pay no regard to the fact of there being no declaration of war, but to treat the Russian and Danish fleet as Byng had treated the Spanish one. Norris accordingly joined his squadron to the Swedish fleet at Carlscrona, and went in pursuit of the fleet of the Czar. Peter, seeing that the English were now in earnest, recalled his fleet with precipitation, and thereby, no doubt, saved it from complete destruction; but he still continued to refuse to make peace, and determined on the first opportunity to have a further slice of Swedish territory. Denmark, which was extremely poor, agreed to accept a sum of money in lieu of Marstrand, which it had seized; and thus all Europe, except the Czar, was brought to a condition of peace.

George had arrived in England from his German States on the 11th of November of the preceding year, 1719, and opened Parliament on the 23rd. In his speech he laid stress on the success of his Government in promoting the evacuation of Sicily and Sardinia by Spain, in protecting Sweden, and laying the foundation of a union amongst the great Protestant Powers of Europe. He then recurred to the subject of the Bill for limiting the peerage, which had been rejected in the previous Session. George was animated by the vehement desire to curtail the prerogative of his son, and said that the Bill was necessary to secure that part of the Constitution which was most liable to abuse. Lord Cowper declared, on the other hand, that besides the reasons which had induced him to oppose the measure before, another was now added in the earnestness with which it was recommended. But Cowper was not supported with any zeal by the rest of the House, and the Bill passed on the 30th of November, and was sent down to the House of Commons on the 1st of December. There it was destined to meet with a very different reception. During the recess Walpole had endeavoured to rouse a resistance to it in both Houses. He had convened a meeting of the Opposition Whigs at Devonshire House, and called upon them to oppose the measure; but he found that some of the Whig peers were favourable to it, from the perception that it would increase the importance of their order; others declared that it would be inconsistent in them to oppose a principle which they had so strenuously maintained against a Tory Ministry—that of discountenancing the sudden creation of peers for party purposes; and others, though hostile to the Bill, declared that they should only expose themselves to defeat by resisting it. But Walpole persisted in his opposition, and declared that, if his party deserted him, he would contend against the Bill single-handed. He asserted that it would meet with strong resistance from the country gentlemen who hoped some time or other to reach the peerage—a hope which the Bill, if carried, would extinguish for ever.

By these endeavours Walpole managed to array a considerable body of the Commons against it. It was introduced on the 8th of December, and Sir John Pakington, Sir Richard Steele, Smith, Methuen, and others joined him in attacking it. Steele made a very powerful speech against it, but the grand assault was that of Walpole. He put out all his strength, and delivered a harangue such as he had never achieved till that day. He did not spare the motives of the king, though handling them with much tact, and was unsparingly severe on the Scottish clauses, and on the notorious subserviency of the Scottish representative peers. He declared that the sixteen elective Scottish peers were already a dead weight on the country; and he asked what they would be when made twenty-five, and hereditary? He declared that such a Bill would make the lords masters of the king, and shut up the door of honour to the rest of the nation. Amongst the Romans, he said, the way to the Temple of Fame was through the Temple of Virtue; but if this Bill passed, such would never be the case in this country. There would be no arriving at honours but through the winding-sheet of an old, decrepit lord, or the tomb of an extinct noble family. Craggs, Lechmere, Aislabie, Hampton, and other Ministerial Whigs supported the Bill; but, in the words of Speaker Onslow, the declamation of Walpole had borne down everything before it, and the measure was defeated by a majority of two hundred and sixty-nine to one hundred and seventy-seven.

In our time this defeat would, as a matter of course, have turned out the Ministry, but in that day it had no such effect. They continued to hold office, and to command undiminished majorities on other questions. Still more singular was its effect, for it induced them to offer office to their triumphant opponent Walpole, who not only accepted a subordinate post amongst them—the Paymaster of the Forces—but consented to support the very clauses regarding the Scottish peers which he had so firmly denounced, should they be inclined to bring forward the Bill a third time.

The spring of 1720 was a period of remarkable national prosperity. But "the grand money schemes projected of late," which appeared to the Jacobite Atterbury and others calculated to cement the royal peace and strengthen the foundation of the Government and nation, were destined to produce a very different effect. For the South Sea Bubble was about to burst. In 1711, Harley, being at his wits' end to maintain the public credit, established a fund to provide for the National Debt, which amounted to ten millions of pounds. To defray the interest he made permanent the duties on wine, vinegar, and tobacco, etc. To induce the purchase of the Government stock, he gave to the shareholders the exclusive privilege of trading to the Spanish settlements in South America, and procured them an Act of Parliament and a royal charter, under the name of the South Sea Company. The idea, hollow and groundless as it was, seized on the imagination of the most staid and experienced traders. All the dreams of boundless gold which haunted the heads of the followers of Drake and Raleigh were revived. The mania spread through the nation, and was industriously encouraged by the partisans of Harley. But this stupendous dream of wealth was based on the promises of Ministers, who at the Peace of Utrecht were to secure from the Government of Spain this right to trade to its colonies. The right was never granted by that haughty and jealous Power, further than for the settlement of some few factories, and the sending of one small ship annually of less than five hundred tons. This, and the Assiento, or privilege of supplying those colonies with African slaves, were the sole advantages obtained, and these were soon disturbed by the war with Spain, which broke out under Alberoni. The South Sea Company, however, from its general resources, remained a flourishing corporation, and was deemed the rival of the Bank of England.

It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.

Walpole, however, continued to oppose the South Sea Bill in the Commons, declaring that the terms were too extravagant ever to be fulfilled; that the experiment could result in nothing but a fearful increase of the costs of stockjobbing, and final confusion and ruin. He insisted that, before the proposals of the Company were accepted, the rise of their stock should be limited, and every means taken to prevent the fever of infatuation that would ensue from the promise of dividends out of funds which could never be realised. He proposed for this purpose the introduction of a clause fixing the number of years' purchase to be granted to the annuitants of the South Sea Company; but to this it was objected that it was the interest of the Company to take up the annuities; and, as the annuitants had the power of coming in or not, as they pleased, the Company would, of course, offer advantageous terms, and, therefore, the whole affair might be safely left to private adjustment. Aislabie added that the South Sea Company would not submit to be controlled in an undertaking they were to pay so dear for. The Bill passed both Houses.

The South Sea Company had immediately on the passing of the Bill proposed a subscription of one million, and this was so eagerly seized on that, instead of one, two millions were subscribed. To stimulate this already too feverish spirit in the public, the Company adopted the most false and unjustifiable means. They had eight millions and a half to pay over to Government as a douceur for granting them the management of the Funds; and, therefore, to bring this in rapidly, they propagated the most lying rumours. It was industriously circulated that Lord Stanhope had received overtures at Paris to exchange Gibraltar and Port Mahon for invaluable gold lands in Peru! The South Sea trade was vaunted as a source of boundless wealth in itself. In August the stock had risen from the one hundred and thirty of the last winter to one thousand! Men sold houses and land to become shareholders; merchants of eminence neglected their affairs and crippled their resources to reap imaginary profits. The Company flattered the delusion to the utmost. They opened a third, and even a fourth subscription, larger than the former, and passed a resolution that from next Christmas their yearly dividend should not be less than fifty per cent.! In labouring to increase the public delusion they seem to have caught the contagion themselves, for they began to act, not like men who were blowing a bubble which they knew must speedily burst, but like persons who had mounted permanently into the very highest seat of prosperous power. They assumed the most arrogant and overbearing manner, even towards men of the highest station and influence. "We have made them kings," said a member of Parliament, "and they deal with everybody as such."

The spirit of gambling thus set going by Government itself soon surpassed all bounds, and burst forth in a thousand shapes. It was well known that the king, his mistresses, his courtiers, his son and heir apparent, were all dabbling busily in the muddy waters of this huge pool of trickery and corruption. A thousand other schemes were invented and made public to draw in fresh gudgeons, and the Prince of Wales allowed his name to stand as governor of a Welsh Copper Company. All ranks and classes rushed to Change Alley—dukes, lords, country squires, bishops, clergy (both Established and Dissenting), were mixed up with stockjobbers and brokers in eager traffic. Ladies of all ranks mingled in the throng, struggling through the press and straining their voices to be heard amid the hubbub. There and all over the kingdom were advertised and hawked about the following and other schemes:—Wrecks to be fished for on the Irish coast; plans for making of oil from sunflower seeds; for extracting of silver from lead; for the transmuting of quicksilver into a malleable and fine metal; for importing a number of large jackasses from Spain; for a wheel for perpetual motion; and, finally, for an undertaking which shall in due time be revealed!

The South Sea Company, with a folly of which extreme greed only is capable, endeavoured to put down these rival schemes and obtained an order from the Lords Justices and writs of scire facias against several of these new bubbles. It was like raising a wind to blow away the bubbles, forgetting that their own was a bubble too, and would go with them. The moment that the people began to distrust one they distrusted all. The panic became as great as the mania had been. The South Sea stock dropped in less than a month from one thousand to below six hundred. There was a simultaneous rush to sell out, and the shares must have sunk instantly to nil but for the gigantic exertions of the Company to raise money and buy in. The relief, however, was but temporary. The bankers and pawnbrokers who had advanced money on scrip broke and fled; merchants, goldsmiths, and speculators rushed away after them. Walpole was summoned in haste from Haughton to devise some means of staying the panic. He endeavoured to get the Bank of England to circulate three millions of South Sea bonds for a year; but the Bank, seeing that the case was desperate, declined it. This was decisive. The rage and despair of the swarming dupes were indescribable. They heaped execrations not only on the South Sea Company, but on Ministers, the king, his mistresses, and the Royal Family, who had all been deep in the affair, and who had taken good care of themselves. George landed at Margate on the 9th of November, soon after which the South Sea stock fell to one hundred and thirty-five. On the 8th of December Parliament met, and promptly began to investigate the scandal.

In the House of Lords on the 24th of January, 1721, five directors who had been called before them were arrested and their papers seized. By what had been drawn from them, it appeared that large sums had been given to people in high places to procure the passing of the South Sea Bill. Lord Stanhope rose and expressed his indignation at such practices, and moved that any transfer of stock for the use of any person in the Administration without a proper consideration was a notorious and dangerous corruption. The motion was seconded by Lord Townshend, and carried unanimously. The examination being continued on the 4th of February, Sir John Blunt refused to answer their lordships, on the plea that he had already given his evidence before the Secret Committee. A vehement debate arose out of this difficulty, during which the Duke of Wharton, a most profligate young nobleman, and president of the Hell-fire Club, made a fierce attack on Stanhope, accused him of fomenting the dissensions between the king and his son, and compared him to Sejanus, who had sown animosities in the family of Tiberius, and rendered his reign hateful to the Romans. Stanhope, in replying to this philippic, was so transported by his rage, that the blood gushed from his nostrils. He was carried from the House, and soon afterwards expired.

Lord Townshend succeeded Stanhope as Secretary of State. Aislabie, who had been deep in the iniquities of the South Sea affair, was compelled to resign his post as Chancellor of the Exchequer, to which Walpole succeeded. Meanwhile the Secret Committee appointed by the Commons continued its labours indefatigably. They sat nearly every day from nine in the morning till eleven at night, and on the 16th of February, 1721, they presented their first report to the House. This revealed a vast amount of Ministerial corruption.

On the very day that this report was being read in the House died one of the accused, James Craggs, Secretary of State. His complaint was smallpox; but the state of mind induced by this exposure is supposed to have rendered the malady fatal. His father, who was Postmaster-General, was so shamefully involved in the same dishonest proceedings, that he took poison.

Charles Stanhope, though clearly guilty, escaped, after examination in the House, by a majority of three, out of respect for the memory of his deceased relative, the upright Lord Stanhope. Aislabie's case came next, and was so palpably bad that he was committed to the Tower and expelled the House, amid the ringing of bells, bonfires, and other signs of rejoicing in the City of London. The bulk of his property, moreover, was seized. This was some compensation to the public, which had murmured loudly at the acquittal of Stanhope. Sunderland's case was the next, and he escaped by the evidence against him being chiefly second-hand. He was acquitted by a majority of two hundred and thirty-three against one hundred and seventy-two. As to the king's mistresses, their sins were passed over out of a too conceding loyalty; but no favour was shown to the directors, though some of them were found to be much poorer when the scheme broke up than they were when it began. Amongst them was Mr. Gibbon, the grandfather of the historian, who afterwards exposed the injustice of many of these proceedings, though at the time they were considered as only too merited. The directors were disabled from ever again holding any place, or sitting in Parliament; and their estates, amounting to upwards of two millions, were confiscated for the relief of the sufferers by the scheme.

On the death of Stanhope, Sir Robert Walpole was left without a rival, and he received his commission of First Lord of the Treasury on the 2nd of April, and from this period down to 1742 he continued to direct the government of Great Britain. His chief anxiety now was to restore the public credit. He drew up, as Chairman of the Committee of the Commons, a report of all that had been lost in the late excitements, and of the measures that had been adopted to remedy the costs incurred. Amongst these were the resolutions of the House respecting the seven and a half millions the directors of the South Sea Company had agreed to pay to Government; more than five had been remitted, and we may add that on the clamorous complaints of the Company the remainder was afterwards remitted too. The forfeited estates had been made to clear off a large amount of encumbrance, the credit of the Company's bonds had been maintained, and thirty-three per cent. of the capital paid to the proprietors. Such were the measures adopted by the Commons, and these being stated in the report to the king, a Bill was brought in embodying them all. Many of the proprietors, however, were not satisfied. They were very willing to forget their own folly and greediness, and charge the blame on the Government. On the second reading of Walpole's Bill they thronged the lobby of the House of Commons. The next day the Bill was carried, and gradually produced quiet; but Walpole himself did not escape without severe animadversions. He was accused of having framed his measures in collusion with the Bank, and with a clear eye to his own interest; but he had been strenuously vindicated from the charge, and on the whole the vigour and boldness with which he encountered the storm and quelled it deserve the highest praise, and may well cover a certain amount of self-interest, from which few Ministers are free.

The discontents occasioned by the South Sea scheme and its issue had caused the Jacobites to conceive fresh hopes of success, and their spirits were still more elevated by the birth of a son to the Pretender. The business of this faction was conducted in England by a junto or council, amongst the chief members of which were the Earls of Arran and Orrery, Lords North and Gower, and the Bishop of Rochester. Lord Oxford had been invited to put himself at the head of this council of five, but everything of a decided nature was out of his character. He continued to correspond with the leaders of the faction, but he declined putting himself too forward. In fact, his habitual irresolution was now doubled by advancing infirmities, and he died three years afterwards. Though several of the junto were men of parliamentary, and North of military experience, Atterbury was the undoubted head of it. The period of confusion created by the South Sea agitation was first pitched on for a new attempt, then that of the general election, which had taken place in March, and, finally, it was deferred till the king should have gone to Hanover, according to his custom, in the summer.

In preparation for this movement James the Pretender was to sail secretly to Spain, in readiness to cross to England; and he had already quitted his house in Rome and removed to a villa, the more unobserved to steal away at the appointed moment. Ormonde also had left Madrid and gone to a country seat half way to Bilbao, when the secret of the impending expedition was suddenly revealed by the French Government to that of England. The conspirators had been mad enough to apply to the Regent for five thousand troops, trusting that, notwithstanding his peaceful relations with Britain, he would secretly enjoy creating it some embarrassment. But in this, as in all other views, they proved more sanguine than profound. Sir Luke Schaub, the British Ambassador, was immediately informed of it on condition, it was said, that no one should die for it.

Walpole was instantly on the alert on this startling discovery. He prevailed on the king to put off his journey to Germany. Troops were drawn round London and a camp was formed in Hyde Park. The king took up his residence at Kensington, in the midst of the soldiers, and the Prince of Wales retired to Richmond. General Macartney was dispatched for still more troops from Ireland; some suspected persons were arrested in Scotland; the States of Holland were solicited to have ships and soldiers in readiness; an order was obtained from the Court of Madrid to forbid the embarkation of Ormonde; and General Churchill was dispatched to Paris to make all secure with the Regent. Atterbury was arrested on the 24th of August.

Parliament opened its first sitting on the 9th of October. The rumour of invasion, of course, gave the tone to the king's speech. He recited the leading facts of the conspiracy, and observed that he should the less wonder at them had he in any one instance, since his accession to the throne of his ancestors, invaded the liberty or property of his subjects.

The very first act was to suspend the Habeas Corpus Act for a year. To punish the Catholics and Non-jurors, who were all regarded as implicated in this conspiracy, Walpole proposed to raise one hundred thousand pounds by a tax on their estates. A Bill of Pains and Penalties was passed against Atterbury, and he was compelled to go into banishment. On the 18th of June Atterbury was put on board a man-of-war and conducted to Calais. As he landed there, he was told that Bolingbroke had received the king's pardon, and was just quitting Calais for England; and the Bishop said, with a smile, "Then I am exchanged."

This Act, however, merely gave Bolingbroke the right to come back and live in security in England. His ambition could only be satisfied by the restoration of his estates and honours. Unfortunately for him, when he arrived in England, the king had sailed for Hanover, attended by Townshend and Carteret, and his great patroness, the Duchess of Kendal. He waited, therefore, on Walpole, who promptly rejected his offers. Mortified at this repulse, Bolingbroke returned to Paris, where a field of action had opened in which he was well calculated to figure.

The restless Englishman, much more like a Frenchman in temperament and character than a native of England, had married Madame de Villette, a niece of Louis XIV.'s last mistress, Madame de Maintenon, a lady rich and well-trained in all the Court life of Paris. By this means Bolingbroke was brought into close connection with that Court. The notorious Cardinal Dubois had died in August, 1723, and in less than four months died also the Duke of Orleans, the Regent. Louis XV. being nominally of age, no other Regent was appointed; but the Duke of Bourbon, a man of better character but of less ability than the Regent, Orleans, was Prime Minister. He was greatly under the influence of his bold and ambitious mistress Madame de Prie; and Bolingbroke, who was high in the favour of both Minister and mistress, flattered himself that, with the aid of his courtier wife, he could govern both them and France.

Bolingbroke was well aware that a violent strife for power was going on in the British Cabinet. Lord Carteret, the new Secretary of State, and afterwards Earl Granville, was labouring hard to undermine both Walpole and Townshend. He was a very accomplished man and a great linguist, familiar with nearly all the Continental languages, including German, which, strangely enough, the English courtiers neglected, though they had a German monarch on the throne who could not speak English. German then was regarded as a language rude and even vulgar—a tongue, as Voltaire afterwards said, "only fit for horses." But Carteret, by being master of it, could converse freely with the king, whilst Walpole, ignorant, too, of French, could hold communication with him only in Latin, which, from the wide difference between the English and foreign pronunciation of it, could not have been a very favourable medium. Carteret had ingratiated himself so much with the king by conversing in German, and flattering George's German tastes and politics, that he had succeeded to the influence which Stanhope had formerly possessed. He had also secured the same influence in the Court of Paris. He had by that means confirmed the appointment of Sir Luke Schaub at that Court, and thus kept open the most favourable communication with the Abbé Dubois. The Courts of England and France continued during Dubois' life in close connection, and through the influence of George and his Ministers, Dubois obtained first the Archbishop's mitre, and then the Cardinal's hat.

The struggle for ascendency proceeding, Walpole and his party secured the interest of the Duchess of Kendal, who always took care to side with that which she thought the stronger. Carteret and his party, on the other hand, secured the interest of the other mistress, the Countess of Darlington, and her sister, Madame de Platen. Whilst affairs were in this position, the two Secretaries of State, Townshend and Carteret, accompanied the king to Hanover. There came upon the tapis the question of a marriage between the Count St. Florentin, the son of La Vrillière, the Secretary of State for France, and a daughter of Madame de Platen. Madame de Platen, however, demanded that La Vrillière should be made a duke, so that in due course of time her daughter would be a duchess. George I. warmly seconded this demand; and, had Bolingbroke used his influence, there was little doubt that it would have been accomplished. But the French nobility raised a huge outcry against this honour being conferred on the family of La Vrillière, which they deemed too obscure for such a dignity. Bolingbroke, however, was seeking his own objects through the other mistress, the Duchess of Kendal; and, notwithstanding the repulse which he had received from Walpole, he still calculated that his power would prevail, and he therefore smothered his personal vexation, and remained on the side of the Duchess of Kendal and Walpole, leaving Carteret and his allies, the Platens, to fight their own battle.

In the midst of these cabals died the Regent, and Townshend, acting with Walpole, sent over Walpole's brother Horace to watch their interests at Paris. Carteret, on the other hand, ordered Sir Luke Schaub to make every exertion for the grant of the dukedom. On the arrival of Horace Walpole, Bolingbroke, obeying the impulses of the courtier and not of the man, immediately waited on him, and placed all his influence at the French Court at his service; but Walpole, who had an invincible repugnance to Bolingbroke, whilst he availed himself of the advantages offered by Bolingbroke, still kept him at a great and stately distance. Undeterred by this conduct, however, Bolingbroke swallowed his mortification, and continued to keep his eye and his hope on the Walpole Ministry. Unassisted by Bolingbroke, the dukedom could not be obtained; but George reconciled Madame Platen to the match by giving her daughter a portion of ten thousand pounds. Horace Walpole, at the same time, succeeded in getting Schaub recalled, and himself installed in his office of Ambassador at Paris—a decided victory over Carteret; indeed, so decided, that Carteret was removed from the Secretaryship to the Lord-Lieutenancy of Ireland.

The domestic serenity of the realm was, however, greatly disturbed at this moment by Dean Swift, who seized on the occasion to avenge himself on the Whig Ministry for the defeat and punishment of his party, and especially of his particular friends and patrons, Oxford and Bolingbroke. There had long been a great deficiency of copper coin in Ireland. The Government undertook to remove this pressing want of so useful a medium, and they set about it in an honest and honourable manner as regarded the quality of the coin. Tenders were issued, and various offers received for the coining of farthings and halfpence to the value of a hundred and eight thousand pounds. The proposal of Mr. William Wood, an iron and copper founder, of Wolverhampton, was accepted; but the quality of the coin, both as to weight and fineness, was determined by the advice of Sir Isaac Newton, then Master of the Mint, and Wood was bound under heavy penalties to furnish it according to this stipulation. Every care was used by the Ministers and the Solicitor- and Attorney-General to insure the supply of a much better copper coinage than Ireland had ever possessed before.

There were some circumstances, however, which came out that created considerable suspicion and displeasure in Ireland. Wood had given a bribe to the king's mistress, the Duchess of Kendal, to procure him the contract, and the Government had ordered the coinage without paying the Irish Privy Council and Lord-Lieutenant the compliment of consulting them on this occasion. Swift saw these errors, and seized on them for his own purposes. He did not stop to inquire whether, after all, the proposed coinage would not, in any circumstances, be much better than the present distressing scarcity of copper money, and whether the farthings and halfpence might not turn out as good, though they were contracted for. It was enough for him that there was a cause of discontent which he could fan into a flame against the British Government. He threw all his spiteful soul into it, and his "Drapier's Letters" inflamed the public mind to such a degree that Walpole was compelled to cancel the patent.

The tumult in Ireland was succeeded by one in Scotland. The people of that country, though they were, by the provisions of the Act of Union, to bear their proportion of the malt tax, had always refused compliance, and in 1713 had issued a violent resolution against it. They had never yet complied with the law, and Walpole, seeing the sturdy nature of the opposition, was willing to give up the point quietly. But during the Parliamentary Session of this year, Mr. Brodrick proposed that a duty of sixpence on every barrel of ale should be paid in lieu of it. Walpole was reluctant to go into the question, but the House was bent on it, and he therefore complied so far as to consent to a duty of threepence per barrel, or half the amount. There were promptly riots in Glasgow, and at Edinburgh the brewers refused to brew. Walpole sent down the Earl of Islay, the brother of the Duke of Argyll, and a zealous adherent of his own, to pacify the country. Islay behaved with equal prudence and firmness. He found the powerful combination of brewers essaying to make a stand against and then attempting to make terms with him. But he let them know that nothing but unconditional surrender to the laws would be accepted, and they at length held a meeting, where the chairman put the question, "To brew, or not to brew?" The members were to vote seriatim; but neither the man on his right nor the one on his left would venture to begin. In the long pause that ensued, one Gray declared that he thought there was nothing for them to do but to return to their trades; that he would not be bound by the majority, but would vote independently, and he voted to brew. The meeting broke up, and that night a number of breweries were set to work, and the next day, at noon, about forty brew-houses were in full action in Edinburgh, and ten in Leith.

One of the first acts of the Parliament, which met on November 12th, was to punish the peculations and abuses of the Lord Chancellor, Parker, Earl of Macclesfield. The Court of Chancery, in former ages a sink of corruption, was at this time in its worst condition. The offices of Masters were regularly sold, and the Masters as regularly took care to recoup themselves by all manner of peculation. The estates of widows and orphans and the money of suitors were unscrupulously plundered. There was a loud outcry against these robberies, and especially against the Lord Chancellor, for his not only tolerating but partaking in them. He endeavoured to escape the storm of public indignation by resigning in January, but this did not avail him. He was impeached by Sir George Oxenden in the Commons, and tried in the Lords, and fined thirty thousand pounds. A motion for disabling him from ever again sitting in Parliament or holding any office was lost only by a very few votes. The king struck his name out of the list of Privy Councillors, and in 1725 Sir Peter King was made Chancellor in his stead, with the title of baron.

Bolingbroke, now restored to his estates, though the attainder still deprived him of his seat in the House of Lords, endeavoured to create a new species of opposition in Parliament. He retained his influence with the Duchess of Kendal, and cultivated that of the ultra-Tories. Still more, he soon discovered that William Pulteney, the most eloquent man in the House, had grown disgusted with Walpole, who could never bear any man of pre-eminent ability near the throne except himself. Pulteney had been one of the steadiest friends of the late queen's Government, and of the Protestant succession. Under George he had been made Secretary at War. He had adhered to Walpole when he was sent to the Tower for corruption, and in the great schism of 1717. Yet Walpole had carefully excluded him from any high post in the Cabinet, and had endeavoured to veil his jealousy of him by offering to procure him a peerage, by which he would have removed him from the active sphere of the House of Commons. Pulteney saw the object, and rejected the specious favour. Instead of conferring on Pulteney some office worthy of his talents, Walpole then put him into that of Cofferer of the Household. In the state of indignation which this paltry appointment raised in him Bolingbroke soon induced Pulteney to put himself at the head of a large body of Oppositionists, under the title of "Patriots." In this character he made some smart attacks on Walpole and his heavy drafts on the Civil List for his friends, for which he was dismissed, and joined Bolingbroke in a bold attempt to write down the Minister. Between them the celebrated paper The Craftsman was planned and established, and they became the bitterest and most persevering assailants of Walpole.