and Great-Britain? His lordship replied, that after the dr rectory should have explained itself, he would likewise send couriers for instructions upon this point. All this the directory chose to consider as dilatory, and expressed their belief that the British government meant, by the present propositions, only a renewal, under a more amicable form, of Mr. Wickham's proposals last year; they also disagreed with the memorial respecting the subject of the basis of negotiation, which ought not to relate to the principle of cession, but to the common necessity of a just and solid peace; nevertheless, they would not reject any means of reconciliation; and intimated, that as soon as lord Malmes. bury should produce sufficient powers from the allies of Great Britain to stipulate for their respective interests, they would give a speedy auswer to the propositions which might be submitted to them.

On the 12th of November, lord Malmesbury having received some further instructions from his court, presented another note to M. de la Croix, importing, that with regard to the injurious and offensive insinuations contained in the last answer of the directory, the king had thought it far beneath his dignity to allow any reply whatever to be returned on his part. M. de la Croix returned, in the name of the directory, an abrupt answer the same day, demanding that the English ambassador would point out directly the objects of reciprocal compensation which he had to propose; and reminded him, that the breaking off of the armistice by the emperor and king was no sign of a disposition in him to conclude a peace upon equitable terms. After some farther correspondence, the British plenipotentiary delivered to M. de la Croix, on the 17th of December, a confidential memorial, containing the principal objects of restitution, compensation, and reciprocal arrangements. These were, FIRST, his Britannic majesty demands the restitution to his majesty the emperor and king, of all his dominions, on the footing of the status ante bellum: 2. The establishment of peace between the germanic empire and France, conformable to the general safety of Europe. 3. The evacuation of Italy by the French troops, with an engagement not to interfere with the internal affairs of that country, which should be established, as far as possible, upon the footing of the status ante bellum. SECONDLY, with regard to the other allies of his Britannic majesty, he demanded that there

should be reserved to her majesty the empress of all the Russias, a full and unlimited power of taking part in this negotiation whenever she might think fit, or of aeceding to the definitive treaty, and thereby returning to a state of peace with France. THIRDLY, his Britannic majesty demanded, that the queen of Portugal might be comprehended in this negotiation, and might return to a state of peace with France without any cession or burthensome conditions on either side. FOURTHLY, on these conditions his majesty offered to France the entire and unreserved restitution of all the conquests which he had made on that power in the East and West Indies. His majesty offered, in like manner, the restitution of the islands of St. Pierre, and Miquelon, and of the fishery of Newfoundland, on the footing of status ante bellum. But if, in addition to this, his majesty were to wave the right given to him by the treaty of Utrecht, of opposing the cession of the Spanish port of St. Domingo to France, he would then demand, in return, a compensation which might secure, in some degree, the maintenance of the balance of the respective possessions in that part of the world. FIFTHLY, in all the cases of cession or restitution, which might come in question in this negotiation, there was to be granted on each side, to all individuals, the most unlimited right to withdraw, with their families and their property, and to sell their land and other immoveable possessions; and adequate arrangements were also to be made, in the course of the tiation, for the removal of all sequestrations, and for the satisfaction of the just claims which individuals of either side might have to make upon either government.

nego

Another confidential memorial was then given, in which, with respect to Holland, it, is asserted, that his Britannic majesty and his allies find themselves too nearly interested in the political situation of these provinces, to be able to consent in their favour to the re-establishment of the status ante bellum with regard to territorial possessions, unless France could, on her part, reinstate them in all respects in the same political situation in which they stood before the war. with respect to Spain, that if the catholic king should desire. to be comprehended in this negotiation, or to be allowed to accede to the definitive treaty, this would meet with no obstacle on the part of his majesty.

And

The purport of the French negotiator's observations on these conditions was, that the first memorial appeared to him to be liable to insurmountable objections; that it

seemed to him to require much more than it conceded, and, in the event, not to leave France in a situation of proportionate greatness to the other powers of Europe. He said the act of their constitution, according to the manner in which it was interpreted by the best publicists, made it impossible to do what the memorial required. The Austrian Netherlands were annexed to France; they could not be disposed of without throwing the nation into all the confusion which must follow a convocation of the primary assemblies. Lord Malmesbury said, that by the treaties existing between his Britannic majesty and the emperor, the two contracting parties reciprocally promise not to lay down their arms without the restitution of all the dominions and territories which may have belonged to either of them before the war. To this M. de la Croix replied, that the present government would be reprehensible in the extreme, and deserve impeachment, if they ever suffered the Nether lands to be restored: that Russia, Austria, and, Prussia had, by the partition of Poland, increased their power in a most formidable degree; that England, by her conquests, had redoubled her strength, and was enabled by her Indian empire alone, to subsidize all the powers of Europe against France; and that her monopoly of trade had put her in possession of a fund of inexhaustible wealth.

In the course of this conversation, lord Malmesbury informed the French minister, that he must not harbour any expectation that his majesty would relax, or ever consent to see the Netherlands remain a part of France. The day after this conversation, lord Malmesbury received a note from the Directory, through the hands of M. de la Croix, desiring him to sign the confidential note, which had been sent without a signature, and to deliver, within twenty-four hours, his ultimatum, signed by him. His lordship having

complied with the former request, received on the 19th of December, a note from the Directory informing him, in an swer to his two notes of the 17th and 18th of December, that the French Executive Directory will listen, to no proposals contrary to the constitution, to the laws, and to the trea ties which bind the republic. His lordship was also ordered to depart from Paris in eight and forty hours.

In consequence of this hasty termination of an embassy on which the public expectation had been anxiously fixed, a message was delivered to the house of commons from his majesty, stating, that his majesty, with great concern, ac

On

quainted the commons that his carnest endeavours to effect the restoration of peace had been unhappily frustrated and that the negotiation in which he had been engaged had been abruptly broken off by the peremptory refusal of the French government to treat, except upon a basis evidently inadmissible, and by their having, in consequence required his majesty's plenipotentiary to quit Paris. the 30th of December this message was taken into consideration, and although some difference of opinion seemed to prevail as to the importance of the Netherlands as a sine qua non, only thirty-seven members voted against the opinion of his majesty's ministers on the whole of the negotiation.

A. D.

1797.

The attention of parliament soon after its reassembling, was called to an affair of great national importance. On the 26th of February, a resolution was adopted by the privy-council, prohibiting the directors of the bank from issuing any cash, till the sense of the legislature should have been taken with regard to the extraordinary state of affairs. The cause of this order was, that the frequent exportation of bullion and cash, had concurred with the practice of hoarding, promoted by the late alarms, to render coin extremely scarce; and so great a demand for it arose in different parts of the country, that the pecuniary exchange of the notes of the Bank became a matter of extreme difficulty and inconvenience. On the 28th, the house of commons appointed a committee for examining the affairs of the Bank, who reported a very favourable view of their finances, but the prohibition of payment in cash was ordered to be continued for a certain time. The Bank were, however, empowered to issue notes of two pounds and one pound, and a great quantity of dol lars were stamped and issued, which relieved the public considerably. In time, the alarm occasioned by these mcasures gradually wore off, and the inconvenience from want of cash began to be felt less and less, as public confidence returned.

On the 26th of April, a second budget was opened by the chancellor of the exchequer, who intimated that the progressive demands of the year might be expected to exceed fifteen millions, exclusive of the former supplies of the session. The loan for which he had agreed was for fourteen millions, and a half, out of which a million and a half would be charged to Ireland; but stipulations had been

made for an ulterior loan of above three millions and a half, if. it should be thought expedient to gratify the emperor with further advances. The new taxes to raise the sum of 1,284,000l. were, additional stamps on agreements, copies of deeds, private transfers of property, newspapers, plate, bills of exchange, and some others which were afterwards abandoned for taxes on horses, coals, pepper, clocks and watches, and Scotch spirits. The session closed on the

20th of July. Much of the latter part of it was taken up in debates on the removal of ministers, and on schemes for quelling a most dangerous mutiny in the navy, which was happily effected, and the principal agents of it punished with death.

While the nation at large, and the city of London in particular, were in a state of alarm, owing to the stoppage of payment at the Bank, an event happened which diverted public attention to a more pleasing object. This was the glorious victory achieved by Sir John Jervis. This able officer had cruised for some time in expectation of meeting with the Spanish fleet; and he was at length apprized by his scouts, that the enemy had been discerned at the distance of only four leagues. Notwithstanding that his fleet consisted of only fifteen sail of the line, and that of the enemy appa rently amounted to no less than twenty-five, he determined to engage them. Having arranged his ships in the most compact order, he sailed with such expedition, that he reached the Spanish fleet before it was disposed with due regularity or connexion. He had so strong a confidence in the valour and discipline of his men, that he did not scruple to depart from the ordinary system, as a considerable degree of enterprize seemed requisite at the commencement of a war with the Spaniards. He therefore passed through their fleet, in a line rapidly formed, and, by tacking, separated one third of it from the main body. After a conflict which continued about five hours, he defeated the enemy, and captured four ships, namely, two of 112 guns, one of 84, and one of 74. It was then found that the whole Spanish fleet consisted of twenty-seven sail of the line. In this engagement, which took place near Cape St Vincent on the 14th of February, 300 men were killed or wounded on the part of the victors: but in the ships which were taken, the list of those who lost their lives, or were wounded, amounted, according to the account given by admiral Jervis, to 603. As a reward for this gallant action, the honours of the peerage were