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TWO:For the reasons here stated, early in the summer a powerful fleet was fitted out with the utmost dispatch and secrecy by the new Ministry, and sent to the Baltic. The fleet consisted of twenty-five sail of the line, more than forty frigates, sloops, bomb-vessels, and gun-brigs, with three hundred and seventy-seven transports to convey over twenty-seven thousand troops from Stralsund, a great part of which were Germans in British pay. Admiral Gambier commanded the fleet, and Lord Cathcart the army, having second in command Sir Arthur Wellesley. On the 1st of August the British fleet was off the entrance of Gothenburg, and Admiral Gambier sent Commodore Keats into the Great Belt to cut off any passage from Holstein for the defence of Copenhagen. Admiral Gambier himself entered the Sound, passed the castles without any attack from them, and anchored in Elsinore Roads. By the 9th of August the whole fleet and the transports were collected there, and Mr. Jackson, who had been many years British envoy in the north of Germany, and knew most of the Danish Ministers, was dispatched to Kiel, in Holstein, where the Crown Prince lay with an army of from twenty[541] thousand to thirty thousand men, to endeavour to induce him to enter into an alliance with Great Britain, and to deliver the fleet to its keeping till the peace, stating the necessity that the British commanders would otherwise be under of taking possession of it by force. The Crown Prince, though the British had made it impossible to cross over and defend the fleet, received the overture with the utmost indignation. Mr. Jackson returned to Admiral Gambier, and the Crown Prince sent a messenger to order Copenhagen to be put into a state of defence. But there was scarcely a gun upon the walls, and the population only numbered, excluding the sailors, some thirteen thousand men, inclusive of five thousand five hundred volunteers and militia. On the 17th several Danish gunboats came out of the harbour, fired at some of our transports coming from Stralsund, burnt an English vessel, and attacked the pickets of Lord Cathcart's army. These vessels were driven back again by bombshells, and that evening Admiral Gambier took up a nearer station north-east of the Crown battery, the Trekroner. He then proceeded to surround the whole of the island of Zealand, on which Copenhagen stands, with our vessels. The division of the army landed at Wedbeck having now marched up, was joined by other divisions, and proceeded to entrench themselves in the suburbs of Copenhagen. They were attacked by the gunboats, but, on the 27th, they had covered themselves by a good battery, and they then turned their cannon on the gunboats, and soon compelled them to draw off. On the 29th Sir Arthur Wellesley marched to Ki?ge, against a body of Danish troops that had strongly fortified themselves there in order to assail the besiegers, and he quickly routed them. The Danish troops then made several dashing sorties from Copenhagen, while their gunboats and floating batteries attacked our advanced vessels, and managed, by a ball from the Trekroner, to blow up one of our transports. The French had now arrived at Stralsund, and Keats was sent to blockade that port, to hinder them from crossing over into Zealand; nothing but the extreme rapidity of the movements of the British prevented a powerful army of French from being already in Copenhagen for its defence.[See larger version]

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TWO:General Cartaux arrived and took up his position in the villages around Toulon. He was reinforced by General Doppet, from the Rhone, and General Dugommier, from the Var; and the latter had in his corps-d'arm��e a young lieutenant of artillery, who contained in his yet unknown person the very genius of war��namely, Napoleon Buonaparte. Cartaux was a man who had risen from the ranks; Doppet had been a physician in Savoy; and Dugommier was acting on a plan sent from the Convention. Buonaparte suggested what he thought a much superior plan. "All you need," he said, "is to send away the English; and to do that, you have only to sweep the harbour and the roadstead with your batteries. Drive away the[423] ships, and the troops will not remain. Take the promontory of La Grasse, which commands both the inner and outer harbour, and Toulon will be yours in a couple of days." On this promontory stood two forts, Equilette and Balaquier, which had been much strengthened by the English. It was resolved to assault these forts, and batteries opposite to them were erected by the French under Buonaparte's direction. After much desperate fighting, vast numbers of troops being pressed against the forts, that of Balaquier was taken. This gave the French such command of the inner harbour, that Lord Hood called a council of war, and showed the necessity of retiring with the fleet, and thus enabling the Royalists to escape, who would otherwise be exterminated by their merciless countrymen. This was agreed to, and it was resolved to maintain the different forts till the ships had cleared out. The Neapolitans behaved very ill, showing no regard for anything but their own safety. They held two forts��one at Cape Lebrun, and the other at Cape Lesset; these, they said, they would surrender as soon as the enemy approached. They made haste to get their ships and men out of harbour, leaving all else to take care of themselves. The Spaniards and Piedmontese behaved in a much nobler manner. They assisted willingly all day in getting on board the Royalists��men, women, and children. All night the troops began to defile through a narrow sallyport to the boats under the guns of the fort La Malaga. This was happily effected; and then Sir Sidney Smith, who had recently arrived at Toulon, and had volunteered the perilous office of blowing up the powder-magazines, stores, arsenals, and the ships that could not be removed, began his operations. He succeeded in setting fire to the stores and about forty ships of war that were in the harbour.Thus was another glorious chance for the utter dispersion of the American army thrown away by this most incompetent commander; and, as Washington saw that he had nothing to fear during the winter, except from the elements, he determined to encamp himself, so as to keep the British in constant anxiety about him. He selected a strong piece of ground at a place called Valley Forge, covered with wood. He set his soldiers to fell trees and make log-huts, the interstices of which they stopped with moss, and daubed up with clay. As they had plenty of fuel, they could thus pass the winter in some degree of comfort. A great number of his men were on the verge of the expiration of their term, and were impatient to return home; but he persuaded many to remain, and he employed them in throwing up entrenchments on the right of his camp, which was open towards the plain. His left was defended by the Schuylkill, and his rear by a steep precipice[240] descending to the Valley Creek. He began two redoubts, but he soon saw that there was no fear of Howe moving so long as the winter lasted, and he left them unfinished. And thus the winter went over, Howe lying snugly at Philadelphia, enjoying his wine and his cards, and apparently forgetful that there was any such place as Valley Forge within five-and-twenty miles of him.

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TWO:But his great measure, at this period, was the blow aimed at the commerce of Britain, and comprised in his celebrated Berlin Decrees, promulgated on the 21st of November. He had subjugated nearly the whole of the European Continent. Spain, Portugal, Italy to the south of France, Belgium, Holland, Germany, and Prussia to the north, with nearly the whole seaboard of Europe, were under his hand and his armies. He had found that he could not invade England; her fleet had risen triumphant, his own fleet had disappeared like a vapour at Trafalgar. As, therefore, he could not reach her soil, he determined to destroy her by destroying her commerce, on which he imagined not merely her prosperity but her very existence depended. As he was master of nearly all Continental Europe, he supposed it as easy for him to exclude by his fiat the merchandise of Britain, as to put down old dynasties and set up new ones. He had yet to[528] learn that commerce has a conquering power greater than that either of martial genius or of arms.But for Newcastle to form a Cabinet was no such easy matter. Pitt refused to take office with him unless he had the whole management of the war and foreign affairs. The king then agreed to send for Henry Fox, who accepted the office of Chancellor of the Exchequer; but Newcastle was so sensible of Fox's unpopularity that he was terrified at undertaking an Administration with Fox and without Pitt, though he was equally reluctant to let a Cabinet be formed without the former. For three months the fruitless endeavours to accomplish a Ministry went on, Parliament sitting all the time, and a great war commencing. Finally, the king and Newcastle were compelled to submit to the terms of "the Great Commoner," as they called Pitt, who became Secretary of State, with the management of the war and foreign affairs. Newcastle became again First Lord of the Treasury, but without one of his old supporters, and Legge Chancellor of the Exchequer; Holderness, a mere cipher, was the other Secretary of State; Anson was placed at the head of the Admiralty; Lord Temple was made Lord Privy Seal; and Pratt, an able lawyer and friend of Pitt, Attorney-General. Fox condescended to take the office of Paymaster of the Forces; and thus, after a long and severe struggle, the feeble aristocrats, who had so long managed and disgraced the country, were compelled to admit fresh blood into the Government in the person of Pitt. But they still entertained the idea that they only were the men, and that wisdom would die with them. One and all, even the otherwise sagacious Chesterfield, prognosticated only dishonour and ruin for such a plebeian appointment. "We are no longer a nation," said Chesterfield; "I never yet saw so dreadful a prospect."

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TWO:The spring of 1720 was a period of remarkable national prosperity. But "the grand money schemes projected of late," which appeared to the Jacobite Atterbury and others calculated to cement the royal peace and strengthen the foundation[46] of the Government and nation, were destined to produce a very different effect. For the South Sea Bubble was about to burst. In 1711, Harley, being at his wits' end to maintain the public credit, established a fund to provide for the National Debt, which amounted to ten millions of pounds. To defray the interest he made permanent the duties on wine, vinegar, and tobacco, etc. To induce the purchase of the Government stock, he gave to the shareholders the exclusive privilege of trading to the Spanish settlements in South America, and procured them an Act of Parliament and a royal charter, under the name of the South Sea Company. The idea, hollow and groundless as it was, seized on the imagination of the most staid and experienced traders. All the dreams of boundless gold which haunted the heads of the followers of Drake and Raleigh were revived. The mania spread through the nation, and was industriously encouraged by the partisans of Harley. But this stupendous dream of wealth was based on the promises of Ministers, who at the Peace of Utrecht were to secure from the Government of Spain this right to trade to its colonies. The right was never granted by that haughty and jealous Power, further than for the settlement of some few factories, and the sending of one small ship annually of less than five hundred tons. This, and the Assiento, or privilege of supplying those colonies with African slaves, were the sole advantages obtained, and these were soon disturbed by the war with Spain, which broke out under Alberoni. The South Sea Company, however, from its general resources, remained a flourishing corporation, and was deemed the rival of the Bank of England.

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