Now was the first blow given by us to the Dutch convoy of the Smyrna fleet, by Sir Robert Holmes and Lord Ossory, in which we received little save blows, and a worthy reproach for attacking our neighbors ere any war was proclaimed, and then pretending the occasion to be, that some time before, the Merlin yacht chancing to sail through the whole Dutch fleet, their Admiral did not strike to that trifling vessel. Surely, this was a quarrel slenderly grounded, and not becoming Christian neighbors. We are likely to thrive, accordingly. Lord Ossory several times deplored to me his being engaged in it; he had more justice and honor than in the least to approve of it, though he had been over-persuaded to the expedition. There is no doubt but we should have surprised this exceeding rich fleet, had not the avarice and ambition of Holmes and Spragge separated themselves, and willfully divided our fleet, on presumption that either of them was strong enough to deal with the Dutch convoy without joining and mutual help; but they so warmly plied our divided fleets, that while in conflict the merchants sailed away, and got safe into Holland.
A few days before this, the Treasurer of the Household, Sir Thomas Clifford, hinted to me, as a confidant, that his Majesty would SHUT UP THE EXCHEQUER (and,[Pg 77] accordingly, his Majesty made use of infinite treasure there, to prepare for an intended rupture); but, says he, it will soon be open again, and everybody satisfied; for this bold man, who had been the sole adviser of the King to invade that sacred stock (though some pretend it was Lord Ashley's counsel, then Chancellor of the Exchequer), was so over-confident of the success of this unworthy design against the Smyrna merchants, as to put his Majesty on an action which not only lost the hearts of his subjects, and ruined many widows and orphans, whose stocks were lent him, but the reputation of his Exchequer forever, it being before in such credit, that he might have commanded half the wealth of the nation.
The credit of this bank being thus broken, did exceedingly discontent the people, and never did his Majesty's affairs prosper to any purpose after it, for as it did not supply the expense of the meditated war, so it melted away, I know not how.
To this succeeded the King's declaration for an universal toleration; Papists and swarms of Sectaries, now boldly showing themselves in their public meetings. This was imputed to the same council, Clifford warping to Rome as was believed, nor was Lord Arlington clear of suspicion, to gratify that party, but as since it has proved, and was then evidently foreseen, to the extreme weakening of the Church of England and its Episcopal Government, as it was projected. I speak not this as my own sense, but what was the discourse and thoughts of others, who were lookers-on; for I think there might be some relaxations without the least prejudice to the present establishment, discreetly limited, but to let go the reins in this manner, and then to imagine they could take them up again as easily, was a false policy, and greatly destructive. The truth is, our Bishops slipped the occasion; for, had they held a steady hand upon his Majesty's restoration, as they might easily have done, the Church of England had emerged and flourished, without interruption; but they were then remiss, and covetous after advantages of another kind while his Majesty suffered them to come into a harvest, with which, without any injustice he might have remunerated innumerable gallant gentlemen for their services who had ruined themselves in the late rebellion.[Pg 78]