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Indirect taxes Levied at the pans on the coast, 35,503,000 36,973,000

on salt.


In the interior,


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A comparison of the two years shows a decrease of 6,578,000f. and an increase of 19,638,000f. making a difference in favour of the present year, of 18,060,000f.

She had the finest finances in Europe; and her condition internal ly was more generally prosperous than that of any of the European nations. Such are the effects of

human industry, exercised under favourable circumstances, and in a country where it enjoys adequate protection from foreign competitors.

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Portugal.-State of Parties-Chaves-Views of Spain-Preparations in Spain for invading Portugal-Negotiations at Madrid-Rising of the Disaffected-Session of the Cortes-Invasion of Portugal by ChavesMilitary Operations-English Troops-Battle of Coruches-Last effort of the Rebels-Feelings of the Portuguese towards the British-Cortes prorogued-Meeting at Elvas--Portugal in May-Changes of Ministry--State of Parties in August-Return of Don Miguel determinedPreparations therefor.

RESUMING the history of the Peninsula where we left it the last year, we proceed, without any prefatory remarks, to describe the organization, progress and conclusion of the Spanish invasion of PORTUGAL, and for the sake of regularity and succinctness we shall complete the account of the latter kingdom before giving that of Spain.

Notwithstanding the apparent cordiality with which don Pedro's constitution was received in Lisbon and other parts of the king. dom, elements of disaffection existed, which soon began to embarrass the movements of the regency. There was a servile party, consisting of many priests, a few nobles, and some of the military officers, who felt irrecon

cilably hostile to the introduction or spread of liberal principles in whatever shape. Through the want of any better point of union, rather than from admiration of the character of the individual, this party rallied around the name of the absent don Miguel. They were secretly assisted by the queen dowager, who, although subject to a kind of honourable confinement at Queluz, was unceasing in her efforts to disturb the new orders of things. The marquis of Chaves, better known in Europe as count Amarante, was an aid of lord Wellington's during the peninsular war. Being a particular friend of don Miguel's, and greatly in fa. vour with the queen mother, and also possessed of great possessions in the northern part of the king.

dom, he attained the credit, if credit it may be called, of heading the party which sighed for the restoration of unqualified despotism. In 1823 he led the anti-constitutionalists of Tras-os-Montes, and succeeded in overcoming the cor


His success at that time may have been considered as prognosticating his fortune in the present case; and may thus have imparted boldness to himself, and confidence in him to his followers. His most distinguished associates were the viscount Canellas, and generals Montealegre and Magessi, officers of some reputation in the army. They counted upon seducing the soldiery to join their cause, and upon being warmly supported by the priesthood, the lower classes of whom were not and could not in the nature of things be friendly to the new constitution, which tended to circumscribe their influence and diminish their importance. Working with such instruments, and cloaking their purpose under the specious name of religion, Chaves and his coadjutors manfully pre. pared to proclaim don Miguel, and to raise the standard of opposition against the regency.

But the conspirators well knew they could accomplish nothing of themselves, and without the aid of some other government. All the great European powers, Great Britain, France, Russia, Prussia, and Austria, had expressly recognized

the new regency, and thus lent their sanction to the constitution. Nothing was to be expected, therefore, from the disapprobation of the leading powers of Europe. But Spain, although she stood alone opposed to the constitutional government of Portugal, and although she was degraded by the mischie vous policy of the ruling party to the lowest degree of imbecility and wretchedness,--Spain alone refused to allow the neighbouring king. dom and its legitimate princes to pursue their own measures of internal government. She persisted in regarding the political changes which Portugal had undergone as a pernicious example of misrule, threatening the most fatal conse quences to herself; and not content with suppressing constitutional forms at home, Ferdinand seemed to feel it necessary to his safety to prevent their existence in Portugal. He forgot that the constitution, being a free grant from don Pedro, the lawful hereditary sovereign of the kingdom, not extorted from him by fear, nor imposed upon him by rebellious subjects, or disaffect. ed soldiery, was wholly unexcep. tionable even according to the slavish maxims of the parties to the holy alliance. Disregarding alike the rights of Portugal as an allied nation, and the plainest dictates of prudence, Spain resolved to op. pose, and if possible subvert the regency and the constitution.

Conscious, however, that an immediate open declaration of war would be difficult to justify, and moreover that the condition of the country would not warrant the measure, the government of Spain sought to attain that, by secret in trigues and covert means, which they durst not attempt in any other more honourable way. Instead, therefore, of organizing a Spanish army, as such, for the invasion of Portugal, they began by supplying resources to Chaves, Canellas, and their fellow conspirators. So early as July, 1826, the machinations of Chaves and his adherents had occasioned desertions from the Portuguese army. They appeared in different places along the frontier, instigating the troops and people to rebellion, assembling the disaffected in bands, and marching them into Spain, to receive the protection and countenance of the local authorities there, and await a convenient time to return in hostile array. Chaves and Montealegre were engaged in this business in the north; and in the south Magessi was arranging at Badajos the deserters belonging to the pro. vince of Alentejo.

All these operations were carried on openly and tranquilly in the Spanish territory, under the eye, and with the sanction of the local authorities, with as much regularity as if Spain had formally declared war against Portugal.

With singular inconsistency, these seditious factionaries, whose pretended object was the defence of the altar and the throne, proposed to make the most violent alterations in the succession to the crown. On the 31st of July, they proclaimed don Miguel king, and the queen mother regent during his absence, although Pedro and each of his children had prior claims; and failing Miguel, they bestowed their allegiance on the princess of Beira, and her son, although by the Portuguese laws, her marriage rendered her incapable of the succession.

The contiguity of Spain and Portugal, and the nature of their past relations, had given occasion to treaties, which, if executed faithfully, would have provided fully and precisely for the present contingency. Each country was bound to disarm all deserters from the other; and, if required, to deliver up the deserters themselves. In. stead of performing these engagements, the military and civil governors of Spain along the frontiers, cordially received the Portuguese rebels as allies, and supplied them with arms, ammunition, provisions, and other necessaries, in the same manner as if they had actually been Spaniards. Reiterated ap. plications were made to the commanders in the frontier towns, and border fortresses, urging the enforcement of the existing treaties;

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