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32% TWO:[See larger version]In the midst of this constitution-making, famine was stalking through the country, and bankruptcy was menacing the exchequer. The first loan of thirty millions had proved a total failure; a second of eighty, according to a fresh plan of Necker's, was equally a blank. With the necessities of the Government, the necessities of the people kept pace. The whole country was revolutionising instead of working; destroying estates instead of cultivating them. Farmers were afraid of sowing what they might never reap; trade and manufactures were at an end, for there was little money and no confidence. The country was not become unfruitful, but its people had gone mad, and the inevitable consequence was an ever-increasing famine. This, instead of being attributed to the true causes, was ascribed by the mob orators to all kinds of devilish practices of the Court and the aristocracy.

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32% TWO:Things being in this position on the arrival of Admiral Lord Howe, he determined still, notwithstanding the Proclamation of Independence, to make every effort to procure a last chance of peace. He deeply regretted the delays which had attended his fleet, and lost no time in sending on shore an intimation that he brought conciliatory overtures. His first act was to dispatch a letter to Franklin, who, in England, had expressed so earnest a desire for accommodation of all differences, informing him of his commission to seek reconciliation, and of his powers for the purpose. But the Declaration being now made, Franklin had no longer a motive to conceal his real sentiments, and he replied in terms which greatly astonished Howe, filling his letters only with complaints of "atrocious injuries," and of what America had endured from "your proud and uninformed nation." Howe next turned to Washington, to whom he dispatched a flag of truce, bearing a letter to the Commander-in-Chief. But as Washington could only be regarded as an insurgent leader, Lord Howe thought he could not officially recognise a title conferred only by the American Congress, and therefore did not address him as "General," but simply as "George Washington, Esquire." Washington refused to treat in any other character than that of Commander-in-Chief of the American forces. He instantly returned Howe's letter, and forwarded the other papers to Congress. One of these was a circular declaration to the late royal Governors, enclosing a copy of Lord Howe's commission, and stating that all who should submit would be pardoned; that any town or province which declared its adhesion to the Crown should at once be exempt from the provisions of all the late Acts of Parliament, especially as regarded their trade; and that, moreover, all such persons as were active in promoting the settlement of their districts should be duly rewarded. The moment Congress received this document they ordered it to be published in the newspapers, that "the people might see how the insidious Court of Great Britain had endeavoured to disarm and amuse them," and that "the few whom hopes of moderation and justice on the part of the British Government had still kept in suspense, might now at length be convinced that the valour alone of their country is to save its liberties." Lord Howe, undeterred by this spirited proceeding of Congress, on the 20th of July sent the Adjutant-General once more to Washington, with another letter, still addressed to "George Washington, Esquire," but adding a number of etceteras. Washington was not to be caught by so shallow an artifice. The proposed interview, like the last, therefore, came to nothing, except that Congress took advantage of these repeated efforts to insinuate that the British were afraid of fighting.

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