II.

First Ministry

Pitt’s goal was to revive the national spirit through peace and economy. He was an excellent financial manager, improving the state’s revenue, cutting expenditure, consolidating the accounts, and beginning systematic reduction of the national debt. In foreign policy he restored Britain’s prestige in Europe and negotiated a favourable trade treaty with France. Some of his proposals—parliamentary reform, free trade between Britain and Ireland, abolition of the slave trade—were rejected by Parliament. When George III became temporarily insane in 1788, an attempt by Charles James Fox (Pitt’s political rival) to gain power by arranging for the Prince of Wales (later George IV) to be appointed regent was blocked by Pitt. Pitt also made important changes to the administration of the British Empire. His Canada Act (1791) established representative institutions for English- and French-speaking Canada. The need for a place for the transportation of convicts led to the dispatch of the First Fleet in 1787 and the establishment of a penal colony in Australia. Political control over the territories in British India was established by Pitt’s India Act (1784).

The outbreak of the French Revolution in 1789, followed by general European war, removed the conditions that favoured Pitt’s policies of peace and economy (see French Revolutionary Wars). Britain declared war on France in 1793, in retaliation for France’s declaration of war, and Pitt became the leader of a nation determined to resist the spread of French power and ideas. Pitt’s policy was to attack French trade and colonies, while subsidizing allies to fight the French on land. In 1793-1794 Pitt’s ministry was strengthened when most of the Whigs came to his support, leaving only a small opposition led by Fox. Fear of radicalism led to legislation to suppress dissidents and restrict political discussion. The war in Europe went badly and brought many hardships at home, but British sea-power remained, and Pitt continued the struggle.

A major problem was Ireland, where Irish nationalism engendered a rebellion (1798) under Wolfe Tone, encouraged by French promises of help. Pitt’s solution to the Irish problem was the Act of Union (1800), which incorporated Ireland into one United Kingdom with Great Britain from January 1, 1801. He also proposed equal political rights for Roman Catholics as essential to making the Act of Union work. Opposition to Roman Catholic emancipation by the king and by many of Pitt’s own supporters caused him to resign in 1801.