Early in October, HARLEY received from the Court an unsigned letter in which these passages occur:—‘The Queen stands her ground and refuses to enter into any capitulation with the [Whig Lords]. She has not hitherto consented to offer or hear of any terms. The Lord T[reasure]r desired she might allow him to treat with ’em, and the Duke of S[OMERSE]T was employed to persuade her, but she was inflexible. The Lord Treasurer offered to resign the Staff, but she would neither take the Staff nor advice from him, and he went to Newmarket without getting any powers or leave to treat.... [Sidenote: Harley Corresp. in MS. Harl. 7526, f. 237.] Your friend cannot answer for the event.... I will add no more but that your friend thinks your being here is very necessary, and that Her Majesty ... would be the better of assistance and good advice.’ It was not, however, until the 8th of August, 1710, that the GODOLPHIN Ministry was dismissed. Two days afterwards, HARLEY was made Chancellor of the Exchequer; the Treasury being put into commission. [Sidenote: THE CHANCELLORSHIP OF THE EXCHEQUER. 1710, August.] He entered upon that office amidst enormous obstacles. His enemies were unable to deny that his exertions to overcome the difficulties in his path were marked by financial ability, and by a large measure of temporary success. But as little can it be denied that the immediate triumph laid the groundwork of public troubles to come. His own account of the situation of affairs, and of the methods taken to improve it, must, of course, be read with the due allowance. The pith of it lies in these sentences:—‘The army was in the field. There was no money in the Treasury. None of the remitters would contract again. The Bank had recently refused to lend the Lord Treasurer GODOLPHIN a hundred thousand pounds. The Army and Navy Services were in debt nearly eleven millions. The Civil List owed £600,000. The annual deficit was, at least, a hundred and twenty-four thousand pounds. The new Commissioners of the Treasury, nevertheless, made provision, within a few days of their appointment, for paying the Army by the greatest remittance that was ever known. [Sidenote: _Letter to the Queen_, June 9, 1714. (_Parl. Hist._, vol. vii, App.)] When Parliament met, on the 27th of November, funds had been prepared for the service of the year, and a plan was submitted for easing the nation of nine millions of debt.’ HARLEY was scarcely warm in his new office before he made the acquaintance of SWIFT, then full of ambitious though vague schemes for the future, and very angry with the leaders of the Whig party for the coolness with which his proffers, both of counsel and of service, had lately been received. [Sidenote: EARLY INTERCOURSE WITH SWIFT. 1710–1711.]