THREE:On the 31st of March Dundas introduced the Indian Budget, and soon afterwards Pitt congratulated the country on the fact that, so far from the American war having injured the trade or the power of Britain, the fact was that our shipping had increased considerably more than one-third since 1773, and we had been continually gaining strength even during the American war, and had relieved ourselves of a load of expense always incurred by the government of the States. This was an admirable argument for declaring all our colonies independent, if it meant anything; but Pitt went on seconding, and even surpassing Dundas in the prognostications of a long peace. What such ministerial speeches were worth was shown on the 5th of May, only a month and five days since the prophecy of Dundas, and not three weeks since his own prophecy, by Pitt announcing that the peace was already disturbed with Spain. It appeared that the high prices obtained by the crews of Captain Cook's ships, the Discovery and Resolution, at Canton, on his exploring voyages in the South Seas, for the ill-selected, half-worn furs brought from the north-west coast of America, had attracted the attention of adventurers under the direct protection of the East India Company. Mr. Mears, who had been a lieutenant in the royal navy, and a Mr. Tippin, were sent out in command each of a vessel. Tippin was wrecked on the coast of Kamtschatka; but Mears reached Prince William's Sound and wintered there, opening a good trade with the natives. In the spring of 1788 he discovered Nootka Sound, a fine bay on the west side of a small island on the west coast of Vancouver's Island. There he formed a settlement, making a bargain with the chief for it. He went to Canton with furs and was opening a fine trade, when the Spaniards came down on the settlement, seized four British vessels, but permitted two United States' vessels to remain unmolested. Part of the English crew were shipped in one of the American vessels to China, and the rest suffered to depart in one of their own ships after it had been plundered. The Spanish commander then settled himself in the new colony, and Spain set up a[372] general claim to all coasts and islands, and the whole Pacific as far as China.Cairness had made a tune for himself and was putting to it the words of the ill-fated poet of his own Land of the Dawning.

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THREE:On hearing of the defeat of Tarleton, Cornwallis advanced rapidly, in order, if possible, to intercept Morgan and his English prisoners at the fords of Catawba. A rise of the water from the rains prevented his crossing that river so soon as he expected, and Morgan joined Greene, both generals, however, retreating behind the Yadkin. The swollen state of the river and the want of boats also detained Lord Cornwallis at the Yadkin, but he finally succeeded in crossing and throwing himself between Greene and the frontiers of Virginia, from which Greene looked for his supplies and reinforcements. Greene continued to retreat till he had also placed the Dan between himself and Cornwallis; but his militia had deserted so rapidly on his flight, that, on reaching the Dan, he had not more than eighty of that body with him. Greene now had the way open to him for retreat into Virginia, and, Cornwallis giving up the chase, marched leisurely to Hillsborough, in North Carolina, where he invited the Royalists to join his standard. Such was his success��numbers of Royalists flocking in to serve with Tarleton's legion��that Greene, alarmed at the consequences of this movement, turned back for the purpose of cutting off all possible reinforcements of this kind, yet avoiding a general engagement. Once more Cornwallis advanced to chastise Greene, and once more Greene beat a retreat. This man?uvring continued till the 15th of March, when Greene having been joined by fresh troops, thought himself strong enough to encounter the English general. He drew up his army on very strong ground near Guildford Court House, where Cornwallis boldly attacked him, and, after a stout battle, completely routed him.

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THREE:But the English measures detained the Russian fleet in the Baltic with Greig at its head, and Russia was saved from her due chastisement. The King of Sweden, indeed, landed an army of thirty-five thousand men in Finland; and his brother, the Duke of Sudermania, appeared in the[352] Baltic at the head of a strong fleet. Nothing could have prevented Gustavus from marching directly on the Russian capital, and St. Petersburg was consequently thrown into the wildest alarm. But Gustavus was only bent on recovering the provinces which Russia had reft from Sweden. He advanced successfully for some time, the Russians everywhere flying before him; but Russian gold and Russian intrigue soon altered all this. Catherine ordered her fleet, which was in the Gulf of Finland, with Greig at its head, to bear down on the Swedish fleet, and, at the same time, emissaries were despatched amongst the officers of Gustavus's army with plenty of gold, and letters were sent to the States of Sweden, calling on them to disavow the proceedings of the king. Before Gustavus had left Sweden with his army, her Minister, passing over the king himself, had made similar communications to Gustavus's proud and disaffected nobles, and Gustavus had ordered him out of the country. The Russian and Swedish fleets now came to an engagement in the straits of Kalkbaden. The battle was desperate; the Swedes fought with their wonted valour; and the Russians, under the management of Greig and the British officers, showed that they were apt scholars. The two fleets separated, after doing each other great mischief, each claiming the victory. Catherine immediately rewarded Greig with a letter of thanks, written by her own hand, and with the more substantial present of a large sum of money, and a good estate in Livonia. Moreover, the partial success of Russia by sea had the effect of encouraging the corrupted officers of Gustavus to refuse to proceed farther in Finland.

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