slip on board the ship. Over-fatigue, hunger than by the extraordinary attachment exand excitement, brought on an attack of hibited towards him by a gigantic Highland high fever. In her ravings, she repeatedly piper, serving with the regiment, whom he uttered the name of George Prendergast, and had chosen as his body servant, and who, her connection with bim was thus first dis- indeed, was scarcely ever absent from his covered. The Colonel, of course, was wroth side. Closely attended by Archy Ledingham, very wroth with both the lovers; she should as the piper was called, Captain Hepburn be sent home instantly by the first ship to was a daily visitor in our lines, friendly with her father, Sir Ulick; but this she positively the officers, genial with the men, and passing refused to agree in, and in her refusal she no one without a kind word or glance; but it was aided and abetted by the wives of all soon began to be noticed that he invariably the married officers, whose interest was halted for some little time at Prendergast's powerfully excited by the romance of the tent, into which he passed, while the Highaffair. So the Colonel, like a sensible man lander remained keeping watch outside. as he was, soon gave in, and the lovers were These visits constantly paid to a very pretty married as soon as we got into barracks. woman, invariably during the absence of her Mrs. Prendergast became at once the pet of husband on regimental duties, of course soon everybody in the regiment; and after a very became the subject of comment among the short time I lost my clerk, as Prendergast scandal-mongers: who began to mention was promoted to duties which brought him Mrs. Prendergast's pame, at first with smiles, into more immediate contact with the Colonel.

A year passed away-a year, during which the Legion suffered numberless hardships and passed through numberless dangers-but through hardships and dangers this high-born Irish girl always bore herself bravely and ably doing her duty to her husband. Prendergast was now a sergeant, a daring soldier, and one likely to win further promotion. He was the Colonel's prime favorite; every officer of the regiment spoke well of him; and his wife and her baby-for she had a little son of a month old-were adored by all the ladies.

and then with scorn; and who would probably have proceeded further, in their amiable self-imposed task, when an event occurred which effectually silenced them.

One morning (the particulars were not generally known for some time, but they oozed out, as all secrets will): one morning, Mrs. Prendergast made her way to our Colonel's tent, and, flinging herself on her knees before him, implored his protection from the persecution to which she was exposed by Captain Hepburn, and of which she dared not tell her husband. That morning, she said, she had told him she should seek the protection of the Colonel, and he had left her tent vowing vengeance. The kind old Colonel raised her from the ground, comforted her in the best manner he could, told her she need fear no further molestation, and dismissed her trembling, but re-assured; then, after consulting with two or three intimate friends, he despatched a strong letter to the commanding officer of Hepburn's regiment.

But theirs, like all other human happiness, was not without a cloud. The great battle on the fifth of May, 1836, had been fought, the Carlists had been driven back, and the Legion was lying encamped outside the walls of San Sebastian. The Tenth Munster lay at the extreme verge of the line; and next to us was a Scotch regiment, with the men and officers of which we soon became very Within an hour's time from the despatch friendly. Among these officers, the most of the letter, Colonel Saunderson entered our frequent and the most welcome in our lines lines, and sought an interview with our was a Captain Evan Hepburn: a tall, dashing, Colonel, in which he stated that he keenly high-spirited fellow, whose father was a laird felt the disgrace which Captain Hepburn of one of the Western isles, and who, after had brought upon his regiment, not only by having been expelled from Sandhurst, rusti- his persecution of Mrs. Prendergast, but by cated at Cambridge, and forbidden the pater- his indulgence in gambling, and the ruin he nal roof, had obtained a commission in the had entailed upon some of his junior officers. Legion, and had already rendered himself Colonel Saunderson added, that he had on conspicuous-not less by his reckless audacity, the previous day severely lectured Hepburn


for his conduct, and that on the receipt of looked, but could not see Levingham by his

this fresh complaint he had again sent for him; but, that the orderly who bore his message had utterly failed in delivering it, for neither Hepburn nor his Highland follower Iwas to be found.

The thought that they had deserted to the Carlists at once struck all who heard the story, and the confirmation of the idea was not long wanting. That night, a company of the Tenth Munsters, of which I was in command, and a company of the Scotch regiment, were told off to perform outlying picket duty, that is, to form our foremost cordon of sentries, nearest to the enemy's lines. It was a black and heavy night; we had marched on without speaking-the two companies in close proximity; when, as we neared the place where the sentries were to be posted, we heard the distant tramp of the enemy's relief guard going their rounds, and the shrill notes of a bagpipe rang through the air. I still distinctly hear the subdued growl of indignation which rose from the Scotchmen when this sound smote upon their ears, and the deep Gaelic oath of vengeance which they uttered, as the well-known notes of the old Jacobite air, "Wha wadna fecht for Charlie ?' came surging over the plain.

For three days and nights this continued; the piper went round with the relief every time the guard was changed, playing as loudly as possible all his old national tunes, and goading his ancient comrades to madness.

side; I cast a hurried glance along my own ranks, and discovered Prendergast within a few feet of me. By the expression of his face I saw that he, too, saw and knew his old enemy; in an instant his musket was at his shoulder, and before the opposing lines clashed together, and with the cheer yet ringing on his lips, Captain Hepburn fell to the ground a corpse, shot dead by Prendergast's hand.

The action was over, the last desperate attempt of the Carlists had been repulsed, their fortifications carried, and they themselves utterly routed. I was wandering about on the plain, endeavoring to muster the remnants of my company, when I came. upon a little knot of soldiers, bending over what I imagined, at first, to be the dead body of some favorite comrade. Pushing through the crowd, I discovered, the body of Prendergast's wife. She had left the lines with a flask of wine and some bread for her husband, and was making her way towards the place where the conflict was raging, when a portion of a shell struck her in the chest, and put an end to the earthly trials of this devoted girl. Sick at heart, and with tears in my eyes, I was turning from the group, when my arm was pressed by the kind grasp of the old Colonel.

"That is the saddest sight I ever saw," said he; "worse, far worse, than a scene I have just come from. You recollect that scoundrelly Scotch piper who deserted with Hepburn? He had built himself into one of those stone huts, but the men of his old regiment found him out, burst into the place, and discovering him in the second story, four of them seized him, two by his hands, and two by his feet; and, then, chaunting meanwhile a dismal Highland croon, they swung him between them, and dashed out his brains against the wall."


On the morning of the fourth day after Hepburn's desertion, it. was determined to attack the Carlist lines: principally with a view of driving the enemy from a row of two-storied stone huts, which they had fortified, and from whence they could keep up a most harrassing fire on our sentries. The action commenced at seven o'clock; and, after three hours' hard fighting, a tremendous charge of our gallant fellows broke the Carlist lines, and sent them in full retreat to Twenty years have passed since that day, their row of fortifications. Here they halted, and not many now remain to whom these re-formed, and again advanced. Often, in circumstances are known; but in the lunatic my dreams, rings in my ears the demoniac ward of the Kerry County Hospital there is yell with which the decimated Carlist band still a tall, grey-haired, soldierly-looking rushed upon their victorious pursuers, cheered man, who is pointed out as "the poor seron by a tall and handsome officer, in a fantas- geant whose lady-wife followed him through tic uniform, in whom, even amidst the smoke his campaigns, and died on the field of and carnage, I recognized E Hepburn. I battle."


From The Saturday Review, 28 Nov. THE CAUSES OF THE CRISIS.

They did understand them, and one of the principles on which they relied was that they might be careless of risk, because Government would step in to save them from its ultimate consequences.

NOTWITHSTANDING the recently reported failure of another large provincial Bank, the worst of the crisis appears to be over, and enough has transpired to indicate the real causes of the disaster. Under present circumstances, the morbid anatomy of trade, as exhibited in the failures that have occured, may be a serviceable, though not a pleasing study. It is very material to ascertain the Bank Act who grow fervent about arbiwhether the troubles we have been passing trary interference with the issue of paper, through are to be attributed to unavoidable and who believe, in all simplicity, that Peel's accident, or to the wilful errors of speculative Act is a subtle contrivance for maintaining a houses, acting in full knowledge of the mis- curiously artificial standard of currency. chief they might do, and in the confidence These gentlemen can never be got to see that if matters came to the worst, Provi- that the Act, so far from interfering with the dence, in the shape of Lord Palmerston, natural course of trade, does exactly the would step in and save them from ruin. If reverse, by prohibiting the arbitrary creation the latter is the real state of the case, there of conventional money, which would interis an end of the argument that commercial fere, and is always intended to interfere, crises are to be regarded as the work of with the natural flow of bullion and the destiny, to be met by exceptional relief, in-market rate of interest. Against fanatics of stead of being averted beforehand by the this stamp silence is the only weapon. But warnings of an inflexible law. The apolo- there is another class of theorists to who gists of Lord Palmerston of course attribute all that has occurred to the mischance of the American panic; but it is daily becoming more evident that the direct influence of this disturbance, serious as it must needs have been, would not of itself have prostrated our commerce or led to any interference with our monetary laws. The principal houses which have really a right to attribute their suspension to the failure of American debtors, are already re-establishing themselves on a creditable footing. All they required was time; and they have been able to offer an early payment of all their liabilities with interest in the meantime. Failures such as these would never have produced the panic which has lately prevailed in this country. But there is another and very dif-interests of traders all over the world, if let ferent type of commercial disaster to be found in the majority of the suspensions which have been reported. We have more narratives of the manufacture of fictitious bills, and we have accumulating evidence of the extent to which the system has been fostered by the speculative policy of banks and money-dealers. It is not to ignorant or unlucky traders that the panic is to be attributed, but to those whose special business it is to understand and to act upon the principles by which the money-market is governed.

Now, if these are the real facts, how entirely do they dispose of the arguments which are urged in favor of relaxing the stringency of our monetary laws. We are not now referring to those declaimers against

the facts we have noticed ought to bring conviction. They are men who attack the Bank Charter Act not from ignorance, but from want of faith. They know that the law of which they complain is simply an enactment that the trade in money shall be left to itself as completely as it would be if Bank-notes had never been invented. They admit that it combines the convenience and economy of paper with a flow of coin as free from artificial regulatiou or disturbance as the supply of the necessaries of life now fortunately is. But they say that the self-acting rule of Free Trade, which is best in every other case, is not the best law for the trade in money. They recognize the broad truth that the complicated action of the separate

alone, will carry every thing where it is wanted, in the right quantity and at the right time. They will trust this principle to furnish the millions of a city like London with their daily food and their daily luxuries-as it does, without stint or waste, and with a success which the ablest commissariat staff could not attain to in supplying an army of as many thousands. But no sooner do they begin to talk of gold than they refuse to put faith in the principle which, in every other discussion they accept as a safe and certain


guide. And yet the doctrine rests on a wants of every applicant. But that is a risk foundation which must be universal. It can- which the speculator does not dread, for he not be questioned in any one of its applica- is quite satisfied that in such a strait legal tions without rejecting the assumption on restrictions will be set at nought, and notes which the whole science of political economy will be forthcoming to stave off the ruin is based-viz., that in the main, men will which he has deliberately risked. It is in pursue their individual interests, and will vain to expect that a more wholesome sys have intelligence enough to see in what they tem will ever be introduced while men are consist. If merchants failed to show this tempted to carry on business, in defiance of amount of intelligence and prudence in the every maxim of prudence, by the assurance general management of their business, free it matters not whether express or implied trade would be a disastrous failure, and we that the law shall always be suspended in should constantly hear appeals to Govern- time to avert their ultimate crash. ment for relief against periodic famines. If the same measure of prudence were displayed by those who conduct the trade in money, panics would seldom occur, and never in the aggravated form which they now assume.

If it is said that it is impossible to prevent over-trading, and that the mischief is done without any deep calculation as to the course which the Bank or the Government may take, the facts of the present crisis furnish There is no way of teaching wisdom but the answer. The offenders are not only or by letting men feel the consequences of chiefly a multitude of small traders, doing folly. It needs no extraordinary sagacity to all the business they can grasp, and who distinguish prudence from imprudence in might perhaps be fairly assumed to have money dealings. The merchant who scatters acted without much reference to the Act or accommodation paper about the market, its suspension. Men of this stamp can not of knows very well that he is playing at a dan- themselves bring about a crisis. It requires gerous game. The money-dealers who make the assistance of indulgent bankers and great advances on questionable securities up to the discount houses to make trade thoroughly edge of their means, rather than sacrifice a rotten. If the dealers in money were to act portion of profit for the security cf an ade- with uniform prudence, as they would be quate reserve, are aware of the risks they compelled to do if they had no Government run. Banks, whose capital is locked up in interposition to look to in the last resort, an unavailable form, must be conscious that over-speculation could never be carried to a the first breath of suspicion may bring them very formidable extent. The fault must to ruin. Yet all these practices go on as a always lie in great measure at the doors of matter of course until a rise in the demand the particular class of traders who have been for accommodation, or a delay in the arrival the especial instruments in bringing about of remittances from abroad, overthrows one the present crisis. They are not men on establishment after another, and discloses an whom a rigid enforcement of the law would amount of unsound trading that leaves every be lost. They would see at once the necesman in doubt of the solvency of his neigh-sity of adopting a more cautious style of bor. Now, what is at the root of all this business, when they had no longer the assurreckless folly? Why do so many merchants, ance of indefinite aid from the Bank of Engand money-dealers, and banks, carry on land. Their prudence would react upon trade on a footing that involves such danger their customers, and though it would be idle of eventual failure? The reason is obvious. to suppose that we can escape altogether The merchant, of course, relies upon his from periods of pressure, the chief engine banker or his discount house to help him for the encouragement of over-speculation through any difficulty. The money-dealer thinks he may as well run matters fine, and so make the larger profits; for if a difficulty comes, what is the Bank of England for, if not to give assistance when it is required? He foresees, perhaps, that at the very time when he is likely to be pinched, the Bank itself may not have the means to supply the

and the production of commercial panic would be converted into a sound element of the mercantile body. On the other hand, if any sanction is given to the practice of suepending the Bank Act on every difficulty, the wildest of the banking and discount establishments will be justified and encouraged in a course of business which renders a crisis


no longer an accident to call forth compas- | though independent, causes of the extreme sion, but an event coolly foreseen and deliberately courted.

From The Saturday Review 12 Dec. THE CAUSE OF THE PANIC. NOTHING shows so clearly the extent to which the interests of commercial nations are interwoven one with another, as the progress of a panic. Like the cholera, it ranges from one end of the globe to another, seeming occasionally a little capricious in its visitations, but for the most part following laws at least as well understood as those which govern the march and determine the intensity of a physical epidemic. There are countries as famous for originating panics as others are for the development of infection. Other localities, again, are prepared by their commercial position and habitudes to receive the taint at the earliest moment. Some are fortunate enough to lie out of the regular track and take the disease only in a mitigated form. For some of these variations in the time and intensity of the visitation, it is not difficult to account, while others are so puzzling as to appear to be due to occasional and accidental causes which are hidden beneath the surface of affairs.. The general progress of the present disturbance is, however, intelligible enough. America had almost a prescriptive right to set the ball rolling. Her youth and her position, her expansive energies and her comparatively slender capital, her speculative temper, the laxity of her morals in money matters-and, more than all, her free banks, and her more than free press-all conduce to make commercial revulsions quite a natural production of the soil. It was a necessity, too, that the wave which originated in the United States should overflow England before reaching any other country. With so many Anglo-American houses in London, Liverpool, and Glasgow, it was hopeless to think of escaping altogether, though there have been abundance of indications that, if our own general commerce had been in as thoroughly sound a state as it was almost universally supposed to be, the American insolvencies would have produced but a slight commotion. After England, Hamburg was likely to be the next sufferer, and now that the trouble has reached that unlucky city, it has borne it even worse than we have. But there seem to have been two concurring,

severity with which the blow has been felt in Hamburg and Altona. The whole trade of the North of Europe has collapsed to an extent which cannot be wholly attributed to the reaction of the American pressure. There must have been some inherent rottenness in the condition of this branch of commerce, to have led to so many failures both here and in Hamburg. It almost looks as if there were two distinct centres of disturbanceone in the American, and the other in the Northern trade, mutually increasing one another, and adding to the difficulties of those countries which, like our own, had extensive connexions with both.

The comparative exemption of the noncommercial nations of Europe from the prevailing distress is only what might have been foreseen, and reflects no special credit on their peculiar modes of supervising and patronizing industrial and speculative operations. But they were out of the circle, and the only way in which the convulsion' could reach them was by creating an unusually high rate of interest, and some disturbance of their foreign exchanges. Apart from any consideration of the monetary systems which prevail in the different countries which have suffered, the relations in which they stand to the localities whence the mischief sprung are enough to account for many of the deplorable results that have been witnessed. But the severity of the visitation has been far greater than it could have been had it fallen upon communities prepared by a previous course of sound and profitable business to bear up against it. Much has been made of the cessation of our usual supply of gold from America, but after all it was only a very few millions at the outside that were withheld, and this loss alone would not have sufficed to create a very extensive derangement of our money market. The amount of debts which ought to have been met by acceptances from America was no doubt much greater, and the failure of the American houses is quite enough to account for the difficulties of cne class of traders among ourselves. But the mere withholding of bills which English houses would otherwise have brought into the market to discount, however ruinous to the individual merchants, would not of itself have led to the excessive demand for accommodation that has culminated in the tempo

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