TWO:In Andalusia, the French under Sebastiani held Malaga and Granada; but more eastward, the Spanish made a very troublesome resistance. It was in vain that Sebastiani marched into the mountains of Murcia to disperse the forces that Blake was again collecting there. Beaten in one place, they appeared in another. A strong force, under General Lacey, surprised a body of six thousand French at Ronda, and put them to flight, securing their arms and stores. In Catalonia, General O'Donnell stood his ground well, the country not only being by nature strong, but lying along the coast, where the British could support them by their fleets. Rushing from their hills and mountain forts, the Catalonian militia continually inflicted severe chastisement on the French invaders, and then retired to their fortresses. Marshals Suchet, Augereau, and Macdonald found it impossible to make permanent head against O'Donnell and the Catalonians. In fact, though Spain might seem to be conquered, having no great armies in the field, it was never less so��and that Buonaparte felt. Wherever there were hills and forests, they swarmed with sharpshooters. For this species of warfare��the guerilla��the Spanish were peculiarly adapted. The mountaineers, headed by the priest, the doctor, or the shepherd, men who, in spite of their ordinary habits, had a genius for enterprise, were continually on the watch to surprise and cut off the enemy. Other bodies of them were led by men of high birth, or of military training, but who were distinguished for their superior spirit and endurance of fatigue. These leaders had the most perfect knowledge of the woods and passes of the mountains, and had the most immediate information from the peasantry of the movements of the French. They could, therefore, come upon them when totally unlooked-for, and cut them off suddenly. If they were repulsed they disappeared like shadows into the forests and deserts. Sometimes they came several thousand strong; sometimes a little band of ten or twenty men would dash forward from their concealment and effect some startling deed. To chase them appeared hopeless, for they vanished in a thousand ways, as water sinks into the earth and disappears. To intimidate them, Soult published a proclamation that he would treat them as bandits, and immediately shoot all that he captured; and the commanders replied by another proclamation that for every Spaniard shot they would execute three Frenchmen; and they so literally fulfilled their threat that the French were compelled to return to the ordinary rules of warfare.The winter of 1836-7 was marked by great commercial activity, and a strong tendency to over-trading, chiefly on the part of the banks. The result was a reaction, and considerable monetary embarrassment. In the reckless spirit of enterprise which led to these consequences, the American houses took the lead. The American speculators indulged an inordinate thirst for gain by land jobs, and over-trading in British produce. The most remarkable examples of this were afforded by three great American houses in London, called "the three W.'s." From an account of these firms, published in June, 1837, it appeared that the amount of bills payable by them from June to December, was as follows: Wilson and Co.,[411] ��936,300; Wigan and Co., ��674,700; Wildes and Co., ��505,000; total acceptances, ��2,116,000. This was upwards of one-sixth of the aggregate circulation of the private and joint-stock banks of England and Wales, and about one-eighth of the average circulation of the Bank of England. The shipments to America by Wigan and Co. amounted to ��1,118,900. The number of joint-stock banks that started into existence at this time was remarkable. From 1825 to 1833 only thirty joint-stock banks had been established. In that year the Charter of the Bank of England being renewed, without many of the exclusive privileges it formerly enjoyed, and the spirit of commercial enterprise being active, joint-stock banks began to increase rapidly. There was an average of ten new companies annually, till 1836, when forty-five of these establishments came into existence in the course of ten months. In Ireland there were ten started in the course of two years. The consequence of this greatly increased banking accommodation produced a wild spirit of commercial adventure, which collapsed first in America, where the monetary confusion was unexampled��bankers, importers, merchants, traders, and the Government having been all flung into a chaos of bankruptcy and insolvency. This state of things in America had an immediate effect in England. Discounts were abruptly refused to the largest and hitherto most respectable houses of Liverpool and London. Trade, in consequence, became paralysed; prices suddenly dropped from thirty to forty per cent.; and the numerous share bubbles��the railway projects, the insurance companies, the distillery companies, the cemetery companies, the sperm oil, the cotton twist, zoological gardens, and other speculations��which had floated on the pecuniary tide, all suddenly collapsed, and there was an end to the career of unprincipled adventurers. It is satisfactory, however, to observe that the sound commerce of the country soon recovered the shock thus given; and in less than two years the pecuniary difficulties had passed away. Commerce had resumed its wonted activity, and flowed steadily in legitimate channels. The American banks resumed payment, and the three great American houses, which had involved themselves to such an enormous extent, were enabled to meet all their liabilities.