h the peace of the civilised world depended. He and Dykvelt came
together at the Hague before Baron Lilienroth, the representative of
the King of Sweden, whose mediation the belligerent powers had accepted.
Dykvelt informed Lilienroth that the Most Christian King had engaged,
whenever the Treaty of Peace should be signed, to recognise the Prince
of Orange as King of Great Britain, and added, with a very intelligible
allusion to the compromise proposed by France, that the recognition
would be without restriction, condition or reserve. Callieres then
declared that he confirmed, in the name of his master, what Dykvelt had
said. [746] A letter from Prior, containing the good news, was delivered
to James Vernon, the Under Secretary of State, in the House of Commons.
The tidings ran along the benches--such is Vernon's expression--like
fire in a field of stubble. A load was taken away from every heart;
and all was joy and triumph. [747] The Whig members might indeed well
congratulate each other. For it was to the wisdom and resolution which
they had shown, in a moment of extreme danger and distress, that their
country was indebted for the near prospect of an honourable peace.

Meanwhile public credit, which had, in the autumn, sunk to the lowest
point, was fast reviving. Ordinary financiers stood aghast when they
learned that more than five millions were required to make good the
deficiencies of past years. But Montague was not an ordinary financier.
A bold and simple plan proposed by him, and popularly called the General
Mortgage, restored confidence. New taxes were imposed; old taxes
were augmented or continued; and thus a consolidated fund was formed
sufficient to meet every just claim on the State. The Bank of England
was at the same time enlarged by a new subscription; and the regulations
for the payment of the subscription were framed in such a manner as to
raise the value both of the notes of the corporation and of the public
securities.

Meanwhile the mints were pouring forth the new silver faster than ever.
The distress which began on the fourth of May 1696, which was almost
insupportable during the five succeeding months, and which became
lighter from the day on which the Commons declared their immutable
resolution to maintain the old standard, ceased to be painfully felt in
March 1697. Some months were still to elapse before credit completely
recovered from the most tremendous shock that it has ever sustained. But