A history of the Peninsular War, Vol. 5, Oct. 1811-Aug. 31, 1812 : $b Valencia, Ciudad Rodrigo, Badajoz, Salamanca, MadridOman, Charles
History
A history of the Peninsular War, Vol. 5, Oct. 1811-Aug. 31, 1812 : $b Valencia, Ciudad Rodrigo, Badajoz, Salamanca, Madrid
Oman, Charles
Peninsular War, 1807-1814
Putting purely Portuguese difficulties aside, Wellington was much
worried at this time by a trouble which concerned the British and not
the local finances. This was the delay in the cashing of the ‘_vales_’
or bills for payment issued by the Commissary-General for food and
forage bought from the peasantry. As long as they were settled at short
intervals, no difficulty arose about them--they were indeed treated
as negotiable paper, and had passed from hand to hand at a lesser
discount than the inconvertible Portuguese government papers. But all
through the year 1811 the interval between the issue of the ‘_vale_’
and its payment in cash at Lisbon had been growing longer, and an
uncomfortable feeling was beginning to spread about the country-side.
The peasantry were growing suspicious, and were commencing to sell
the bills, for much less than their face value, to speculators who
could afford to wait for payment. To recoup themselves for their loss
they were showing signs of raising prices all round. Fortunately they
were a simple race, and communication between districts was slow and
uncertain, so that no general tendency of this sort was yet prevalent,
though the symptoms were making themselves visible here and there.
Hence came Wellington’s constant applications for more cash from
England at shorter notice. Late in the spring he devised a scheme by
which interest at 5 per cent. was to be paid by the Commissary-General
on bonds or certificates representing money or money’s worth advanced
to the British army, till the principal was repaid--two years being
named as the period after which the whole sum must be refunded. This
was a desperate measure, an endeavour to throw forward payment on to
a remote future, ‘when it is not probable that there will be the same
difficulty in procuring specie in England to send abroad as there is
at the present moment.’ The plan[153] was never tried, and was not
good: for how could small creditors of the English army be expected
to stand out of their money--representing the price of their crops
or their cattle--for so long a period as two years, even if they
were, in the meantime, receiving interest on what was really their
working capital? Wellington himself remarked, when broaching the
scheme to Lord Liverpool, that there remained the difficulty that no
one could look forward, and say that the British army would still be
in the Peninsula two years hence. If it had left Portugal--whether
victorious and pushing towards the Pyrenees, or defeated and driven
back on to Great Britain--how would the creditors communicate with
the Commissary-General, their debtor? They could only be referred to
London, to which they would have no ready access: indeed many of them
would not know where, or what, London was. That such an idea should
have been set forward only shows the desperate financial situation of
the British army.
Public-domain text, read in full here on John Shaqi.
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