R. H. Gretton

Source.—Lord Beaconsfield’s Endymion, bk. iii., chap. x.

The condition of England at the meeting of Parliament in 1842 was not satisfactory. The depression of trade in the manufacturing districts seemed overwhelming, and continued increasing during the whole of the year. A memorial from Stockport to the Queen in the spring represented that more than half the master-spinners had failed, and that no less than three thousand dwelling-houses were untenanted. One-fifth of the population of Leeds were dependent on the poor-rates. The state of Sheffield was not less severe—and the blast furnaces of Wolverhampton were extinguished. There were almost daily meetings at Liverpool, Manchester, and Leeds, to consider the great and increasing distress of the country, and to induce ministers to bring forward remedial measures; but as these were impossible, violence was soon substituted for passionate appeals to the fears or the humanity of the Government. Vast bodies of the population assembled in Stalybridge, and Ashton, and Oldham, and marched into Manchester.

For a week the rioting was unchecked, but the Government despatched a strong military force to that city, and order was restored.

The state of affairs in Scotland was not more favourable. There were food riots in several of the Scotch towns, and in Glasgow the multitude assembled, and then commenced what they called a begging tour, but which was really a progress of not disguised intimidation. The economic crisis in Ireland was yet to come, but the whole of that country was absorbed in a harassing and dangerous agitation for the repeal of the union between the two countries.

During all this time, the Anti-Corn-Law League was holding regular and frequent meetings at Manchester, at which statements were made, distinguished by much eloquence and little scruple. But the able leaders of this confederacy never succeeded in enlisting the sympathies of the great body of the population. Between the masters and the workmen there was an alienation of feeling, which apparently never could be removed. This reserve, however, did not enlist the working classes on the side of the Government; they had their own object, and one which they themselves enthusiastically cherished. And this was the Charter, a political settlement which was to restore the golden age, and which the master manufacturers and the middle classes generally looked upon with even more apprehension than Her Majesty’s advisers. It is hardly necessary to add, that in a state of affairs like that which is here faintly but still faithfully sketched, the rapid diminution of the revenue was inevitable, and of course that decline mainly occurred in the two all-important branches of the customs and excise....

The minister brought forward his revision of the tariff, which was denounced by the League as futile, and in which anathema the opposition soon found it convenient to agree. Had the minister included in his measure that “total and immediate repeal” of the existing corn laws which was preached by many as a panacea, the effect would have been probably much the same. No doubt a tariff may aggravate, or may mitigate, such a condition of commercial depression as periodically visits a state of society like that of England, but it does not produce it. It was produced in 1842, as it has been produced at the present time,[1] by an abuse of capital and credit, and by a degree of production which the wants of the world have not warranted.

And yet all this time, there were certain influences at work in the great body of the nation, neither foreseen, nor for some time recognised, by statesmen and those great capitalists on whose opinion statesmen much depend, which were stirring, as it were, like the unconscious power of the forces of nature, and which were destined to baffle all the calculations of persons in authority and the leading spirits of all parties, strengthen a perplexed administration, confound a sanguine opposition, render all the rhetoric, statistics, and subscriptions of the Anti-Corn-Law fruitless, and absolutely make the Chartists forget the Charter.

There was abundant capital in the country and a mass of unemployed labour. But the markets on which they had of late depended, the American especially, were overworked and overstocked, and in some instances were not only overstocked, but disturbed by war, as the Chinese, for example—and capital and labour wanted a new channel.

The new channel came, and all the persons of authority, alike political and commercial, seemed quite surprised that it had arrived; but when a thing or a man is wanted, they generally appear. One or two lines of railway which had been long sleepily in formation, about this time were finished, and one or two lines of railway which had been finished for some time and were unnoticed, announced dividends, and not contemptible ones. Suddenly there was a general feeling in the country that its capital should be invested in railways; that the whole surface of the land should be transformed, and covered, as by a network, with these mighty means of communication. When the passions of the English, naturally an enthusiastic people, are excited on a subject of finance, their will, their determination, and resource, are irresistible. This was signally proved in the present instance, for they never ceased subscribing their capital until the sum entrusted to this new form of investment reached an amount almost equal to the national debt; and this, too, in a very few years. The immediate effect on the condition of the country was absolutely prodigious. The value of land rose, all the blast furnaces were relit, a stimulant was given to every branch of the home trade, the amount suddenly paid in wages exceeded that ever known in this country, and wages, too, at a high rate. Large portions of the labouring classes not only enjoyed comfort, but commanded luxury. All this of course soon acted on the revenue, and both customs and especially excise soon furnished an ample surplus.

It cannot be pretended that all this energy and enterprise were free in their operation from those evils which, it seems, must inevitably attend any extensive public speculation, however well-founded. Many of the scenes and circumstances recalled the days of the South Sea Scheme. The gambling in shares of companies which were formed only in name was without limit. The principal towns of the north established for that purpose stock exchanges of their own, and Leeds especially, one-fifth of whose population had been authoritatively described in the first session of the new parliament as dependent on the poor-rates, now boasted of a stock exchange which in the extent of its transactions rivalled that of the metropolis. And the gambling was universal, from the noble to the mechanic. It was confined to no class and no sex. The scene which took place at the Board of Trade on the last day on which plans could be lodged, and when midnight had arrived while crowds from the country were still filling the hall, and pressing at the doors, deserved and required for its adequate representation the genius of a Hogarth. This was the day on which it was announced that the total number of railway projects, on which deposits had been paid, had reached nearly to eight hundred.

What is remarkable in this vast movement in which so many millions were produced, and so many more promised, is, that the great leaders of the financial world took no part in it. The mighty loan-mongers on whose fiat the fate of kings and empires sometimes depended, seemed like men who, witnessing some eccentricity of nature, watch it with mixed feelings of curiosity and alarm. Even Lombard Street, which never was more wanted, was inactive, and it was only by the irresistible pressure of circumstances that a banking firm which had an extensive country connection was ultimately forced to take the leading part that was required, and almost unconsciously lay the foundation of the vast fortunes which it has realised, and organise the varied connection which it now commands. All seemed to come from the provinces, and from unknown people in the provinces.