FORE:During this year the Americans continued to hope for relief to themselves from the progress of the Armed Neutrality, but derived little good from it, though, through their exertions, they beheld Holland added to the open enemies of England. The Dutch Government, flattering themselves that, with nearly all the world against her, England must succumb, had long been secretly in negotiation with the insurgent subjects of England, and their treachery was now suddenly, by a singular circumstance, brought to light. Captain Keppel, cruising in the Vestal frigate off the banks of Newfoundland, in the month of September, captured one of the American packets. On the approach of the British boats to the packet, it was observed that something was hastily flung overboard. A sailor leaped from one of the boats into the sea, and succeeded in securing this something before it had sunk beyond reach. It turned out to be a box, which had been weighted with lead, but not sufficiently to render it so rapid in its descent as to prevent its seizure by the British tar. On being opened, it revealed a mass of papers belonging to an American emissary to the Court of Holland, and opened up a long course of negotiations, and an eventual treaty of peace and commerce between Holland and our American colonies. The bearer of these papers was discovered on board the packet, in the person of Henry Laurens, late president of the American Congress. These most important papers, together with their bearer, were sent with all speed to England. Copies were forwarded to Sir Joseph Yorke, our Ambassador at the Hague, who was instructed to demand from the States General the disavowal of the negotiations. The States General, confounded by the discovery of their clandestine negotiations, remained silent for a week, and then only replied by advancing complaints of violence committed by the British navy on their traders, and of its having insulted the Dutch flag by seizing some American privateers in the port of the island of St. Martin, under the very guns of the fort. Sir Joseph did not allow himself to be diverted from his demand, but again, on the 12th of December, a month after the presentation of his memorial, demanded an answer. No answer was returned. England was thus compelled to declare war against Holland on the 20th of December, Sir Joseph Yorke being recalled by the king, and Count Welderen receiving his passports in London.

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