produce of the sinking fund.

There was a violent resistance in both Houses to this plan; Mr. Fox, Mr.
Sheridan, and others, who had previously seceded, re-appearing in their
places for the express purpose of opposing it; but it was carried,
nevertheless, by large majorities. Several other measures, to provide
means for carrying on the war, and strengthening the national defences,
were also introduced; and at no period, since the commencement of
hostilities, was public opinion declared so energetically in favour of
the ministerial policy. Numerous circumstances contributed to feed the
popular ardour as the year advanced. Splendid naval victories inspired
the highest confidence in the ultimate issues of the war; commerce once
more resumed its former activity; the harvest was unusually abundant;
and all branches of trade and industry reached a height of prosperity
that completely relieved the depression under which they had suffered
during the preceding year.

The most active measures were set on foot to promote the common object
of protecting the empire against foreign invasion and domestic treason.
The most prominent of them was a plan for augmenting the Militia,
afterwards matured and introduced by Mr. Dundas; and the collection of
subscriptions towards the formation of a national defence fund. No
greater proof could be given of the zeal of the people, at a period when
their burthens were already so excessive, than the munificence and
promptitude of their contributions on this occasion. At a meeting of
bankers and merchants held in the open square of the Royal Exchange,
upwards of forty-six thousand pounds were collected on the spot; the
King subscribed L20,000; the Queen L5,000; numerous mercantile firms and
private individuals contributed large sums, varying from L3,000 to
L10,000; and the Bank of England, the noble tribute of L200,000. That
this urgent necessity should have pressed heavily upon those public men
whose position made a heavy demand upon their patriotism, was to be
expected, and in some instances, sacrifices were made to an extent which
rendered unavoidable the reduction of their domestic establishments; but
no considerations of personal inconvenience were suffered to interfere
with the paramount claims of duty. The subjoined letters throw
considerable light on these transactions, and are of especial interest
from the minute details they present respecting the measures that were
adopted in this great e