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TWO:The receipt of such proposals in England produced the utmost consternation in the Cabinet. Townshend, in an "absolutely secret" answer to Stanhope, expressed the concern both of himself and the Prince of Wales at the prospect of a rupture with the Czar, who would seize the British ships and subjects in Russia, and prohibit the supply of naval stores from his kingdom, and that especially at a crisis when England was threatened with an invasion from Sweden and a rising of the Jacobites. He did not deny that there was a great risk of both these kingdoms and the German empire being exposed to imminent danger by the designs of the Czar on the whole coast of the Baltic, a danger which he might, had he dared, truly have attributed to George's own deeds by offending Sweden, instead of uniting with it to counterbalance the Czar's plan of aggrandisement. Fortunately, the Czar was induced, by the combined remonstrances of Austria, Denmark, and Sir John Norris, to abandon his projects for the moment, at least in Germany, and to withdraw his troops from Mecklenburg.With the war the manufacture of guns and arms of all kinds was greatly increased, and several important improvements were made in the construction of gun-barrels and their breeches. All kinds of cutlery were improved, but, at the same time, both Government, by contractors, and foreign countries, by merchants, were imposed on by articles that had more show than use, to the serious injury of the British reputation. Knives and razors were sent out of mere iron, and our pioneers and sappers and miners were often supplied with axes, picks, and shovels more resembling lead than iron.

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THREE:But smoothly as this transaction had passed, there was a hurricane behind. The threatened extension of the measure to Scotland roused all the Presbyterian bigotry of the North. The synod of Glasgow and other synods passed resolutions vowing to oppose any interference with the Scottish Act for the suppression of Popery. Press and pulpit were speedily inflamed; associations were formed in Edinburgh, Glasgow, and most of the towns, for the defence of the Protestant interest. All the old persecutions and insults of Catholics were renewed; they could not safely appear in the streets, or remain safely in their houses. Not even those liberal enough to advocate the just rights of Catholics were secure, at least from rude treatment. Dr. Robertson, the historian, was hooted, when he went abroad, as a favourer of the Papists. There was as yet no more toleration in Scotland than if a William III. had never appeared in England. From Scotland the intolerant leaven spread southwards. It grew fiercer and fiercer, and in a while found a proper champion in the hot-headed Lord George Gordon, whose exploits as the ringleader of riot, and fire, and confusion, culminated two years later in the scenes of destruction and terror for ever memorable as the Gordon riots.Defeated in this object, the Patriots united all their force to embroil us with Spain. There were many causes in our commercial relations with Spain which led to violent discontent amongst our merchants. They found the trade with the Spanish settlements in America exceedingly profitable, but they had no right, beyond a very limited extent, to trade there. The Spaniards, though they winked at many encroachments, repressed others which exceeded these with considerable vigour. Their Coastguard insisted on boarding and searching our vessels which intruded into their waters, to discover whether they were bringing merchandise or were prepared to carry away colonial produce. By the treaty of 1670 Spain had recognised the British colonies in North America, and England had agreed that her ships should not enter the ports of the Spanish colonies except from stress of weather, or with an especial licence from the Spanish Government to trade. By the treaty of 1729 we had agreed to the old regulations regarding trading to the Spanish Main, namely, that we should have the Assiento, or right of supplying these colonies with slaves, and that, besides this, we should only send one ship annually to the Spanish West Indies and South America. As fast as that authorised ship discharged its cargo in a Spanish port, she received fresh supplies of goods over her larboard side from other vessels which had followed in her wake, and thus poured unlimited quantities of English goods into the place. Other English traders did not approach too near the Spanish coasts, but were met in certain latitudes by South American smugglers, who there received their goods and carried them into port. In short, such a system of contraband trade was carried on in these waters by our merchants, that English goods in abundance found their way all over the Spanish American regions, and the great annual fair for goods imported from or by Spain dwindled into insignificance. THREE:Referring to the means at the disposal of Government for putting down the agitations by military force, Peel has this remarkable passage:��"This is a very delicate matter to discuss; but why have I deferred for twenty years this vindication of my conduct? Why have I consented to submit for that long period to every reproach which malice, or mistake, or blindness to the real state of affairs could direct against me, except in the hope that the time would come (I cared little whether I were in the grave or not when it should come) when delicate matters might safely be discussed, and when, without prejudice to the public interests, or offence to private feelings, the whole truth might be spoken? I deliberately affirm that a Minister of the Crown, responsible at the time of which I am speaking for the public peace and the public welfare, would have grossly and scandalously neglected his duty if he had failed to consider whether it might not be possible that the fever of political and religious excitement which was quickening the pulse and fluttering the bosom of the whole Catholic population��which had inspired the serf of Clare with the resolution and energy of a free man��which had, in the twinkling of an eye, made all considerations of personal gratitude, ancient family connection, local preferences, the fear of worldly injury, the hope of worldly advantage, subordinate to the all-absorbing sense of religious obligation and public duty��whether, I say, it might not be possible that the contagion of that feverish excitement might spread beyond the barriers which, under ordinary circumstances, the habits of military obedience and the strictness of military discipline opposed to all such external influences." THREE: