In the House of Commons, Mr. Alderman Thompson, member for London, and a merchant of eminence, whose opinions upon the state of commercial matters were fairly regarded as of good authority, bore ample testimony to the fidelity with which that state was pictured in the king's speech. In the Excise, there was an increase of more than a million, as compared with the preceding year; in the Customs there was a similar augmentation. "Whatever part of England you visit," said the worthy alderman, "there are presented to your view a happy, contented, and industrious population; whether they are employed in the manufactories of our great staples, or in the cultivation of the soil, the scene is equally gratifying."" The exports of 1824 were the largest ever known (in official value, 50,758,800l.) and exceeded those of 1823 by four millions and a half. The transit-trade had experienced a marked increase. The shipping interests were all in a state of rapid improvement. About two hundred more merchant vessels had been built within the preceding year, and they had all "plenty of employment."

Before these pleasant speeches had time to grow insipid, the chancellor of the exchequer, Mr. Robinson, (he was afterwards nick-named "Prosperity Fred," and is now Earl of Ripon, and President of the Board of Trade,) hastened to bring forward his financial statement for the year, and appeared anxious only to subdue to something like a statesman-like tone of moderation the feelings of exultation which were swelling in his bosom. But it is not a little remarkable that, while those feelings were struggling within him for adequate expression, some small still voice seemed to warn him of the unseen abyss which was already opening at his feet. The exordium of his speech on that occasion was, without any consciousness of danger upon his part, almost prophetic. "Although," said he, on rising, "I cannot forbear to congratulate the house upon the auspicious circumstances under which we are called upon to review the state of our finances; I can truly say, that I do not do so for the mere purpose of making a flourish, nor with any desire to induce the country to indulge in an unreasonable exultation as to the present, or an extravagant anticipation as to the future. But although I have no such object in view, and although there may be in this country, and unquestionably are in other countries, persons who, either jealous of the eminence of our station, or ignorant of the causes which have placed us there, may represent our present prosperity as the forerunner of our ruin, and may wish to describe us as having merely hastened I, nevertheless, am of opinion, that if, upon a fair review of our situation, there shall appear to be nothing hollow in its foundation, artificial in its superstructure, or flimsy in its general result, we may safely venture to contemplate with instructive admiration the harmony of its proportions and the solidity of its basis."

"Numerosa parare Excelsse turris tabulata, unde altior esset Casus, et impulsse prsaeceps immane ruinae;"

It is now perfectly well known that all these flattering notions of successful improvement and over-flowing fortune were delusion and mockery. There is no story in the Arabian Nights1 Entertainments more visionary and unreal than that which the minister of the day narrated of the prosperity of 1825, a thing worse than the baseless fabric of a dream; for that leaves no wreck behind, whereas this did - and what a wreck!

If we look at the full volumes of information collected together upon Banking and Currency by the parliamentary committees of 1797, 1810, and 1819, we shall be lost in wonder at the reckless conduct and blind infatuation into which both the Bank directors and the Government of the country fell at this juncture. Three functions had been imposed upon the Bank: it was required to provide gold to pay off its own one-pound notes; that was a direct obligation: gold for the country Bankers to pay their one-pound notes, which was an indirect obligation; and, again, gold to meet its obligations, generally, under the new arrangements. The total of these obligations was estimated at twenty millions.

While the Bank was occupied with the task of making these provisions, the Government entered into some concurrent operations for the purpose of lessening the pressure of the national debt - such as paying off the 4 and 5 per cents., in which as usual the Bank became its agent, and thus contributed to throw an extra mass of ready money upon the market. This took place at a time when the unavoidable consequences of its own acts in other respects were an extension of the currency and a consequent cheapening of its value. So well had the directors taken their measures for accumulating a good stock of gold, that they were able to withdraw their one-pound notes from circulation before the stipulated period - as early as 1821 - and they had in their coffers at the beginning of 1824, the largest sum in gold they had ever possessed, amounting to 14,142,000l. Why so large a sum was then collected, after the heaviest of the obligations against it, namely, the payment of the country Bankers' one-pound notes, had been put off for the long term of eleven years, has never been very clearly explained. Two consequences ensued, which all parties ought to have anticipated. The country Bankers, who had contracted their issues at least one half, while the prospect of being obliged to pay them in gold was held up to them, no sooner found that liability withdrawn to a remote period, than they hastened to return to their former average; while the Bank was also sending out notes against the gold which had been collected for, but was no longer wanted by them. Can we doubt the result?

Never before was speculation so buoyant at home, and enterprise so active abroad. All this was perfectly natural. The concurrent movements of the Bank, the Government, and the Legislature, had made money abundant; and the people, having more of it than they had been accustomed to, indulged those desires for adventure and fortune-making which so golden an epoch had warmly generated. Here there is no room for wonder; all we can say is, that it would have been indeed wonderful if things had, under such circumstances, not taken the feverish turn they did.