George I of Great Britain

George I (Georg Ludwig) (28 May 1660 – 11 June 1727) was Duke of Brunswick-Lüneburg (Hanover) from 23 January 1698, and King of Great Britain and King of Ireland from 1 August 1714, until his death. He was also the Archbannerbearer (afterwards Archtreasurer) and a Prince Elector of the Holy Roman Empire. George I, the first Hanoverian monarch of Great Britain and Ireland, was not a fluent speaker of the English language; instead, he spoke his native German, and was for this ridiculed by his British subjects. During his reign, the powers of the monarchy found themselves diminished; the modern system of government by a Cabinet underwent development. During the later years of his reign, actual power was held by a de facto Prime Minister, Sir Robert Walpole.

Ministries

In 1717, when the Whigs came to power, George's chief ministers included Sir Robert Walpole, Charles Townshend, 2nd Viscount Townshend, James Stanhope, 1st Viscount Stanhope (afterwards 1st Earl Stanhope) and Charles Spencer, 3rd Earl of Sunderland. In the same year, Lord Townshend and Walpole were removed from the Cabinet by their counterparts; Lord Stanhope became supreme in foreign affairs, and Lord Sunderland the same in domestic matters.

Related Topics:
Charles Townshend, 2nd Viscount Townshend - James Stanhope, 1st Viscount Stanhope - Charles Spencer, 3rd Earl of Sunderland

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Lord Sunderland's power began to wane in 1719. He introduced a Peerage Bill, which attempted to limit the size of the House of Lords (mostly composed of Tory aristocrats), but was defeated. An even greater problem was the South Sea Bubble. In 1719, the South Sea Company proposed to convert £30,981,712 of the British national debt. At the time, government bonds were extremely difficult to trade due to unrealistic restrictions; for example, it was not permitted to redeem certain bonds unless the original debtor was still alive. Each bond represented a very large sum, and could not be divided and sold. Thus, the South Sea Company sought to convert high-interest, untradeable bonds to low-interest, easily-tradeable ones. The Company bribed Lord Stanhope to support their plan; they were also supported by Lord Sunderland. Company prices rose rapidly; the shares had cost £128 in January 1720, but were valued at £550 when Parliament accepted the scheme in May. The price reached £1000 by August. Uncontrolled selling, however, caused the stock to plummet to £150 by the end of September. Many individuals—including aristocrats—were completely ruined.

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The economic crisis, known as the South Sea Bubble, made George I and his ministers extremely unpopular. Lord Stanhope died and Lord Sunderland resigned in 1721, allowing the rise of Sir Robert Walpole. (Lord Sunderland retained a degree of personal influence with George I until he died in 1722.) Walpole became George's primary minister, although the title "Prime Minister" was not formally applied to him; officially, he was only the First Lord of the Treasury. His management of the South Sea crisis helped avoid a dispute between the King and the House of Commons over responsibility for the affair.

Related Topics:
1721 - 1722 - Prime Minister

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Walpole strengthened his influence in the House of Commons through bribery. The Septennial Act, by lengthening the terms of members of the House from three to seven years, greatly aided Walpole's corrupt efforts. As requested by Walpole, George I created a new order of chivalry, The Most Honourable Order of the Bath. Walpole rewarded political supporters and bribed others by offering them membership of the prestigious organisation.

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Walpole thus became extremely powerful; he, not the King, truly controlled the government. Walpole was allowed to choose and remove all ministers; George I merely rubber-stamped his decisions. George I did not even attend meetings of the Cabinet; all his communications were in private. George I only exercised substantial influence with respect to British foreign policy. He, with the aid of Lord Townshend, arranged for the ratification of the Treaty of Hanover, which was designed to protect British trade, by Great Britain, France and Prussia. Some of George I's successors—most notably his great-grandson, George III—attempted to reverse the shift in power, but proved unsuccessful.

Related Topics:
Treaty of Hanover - Prussia - George III

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