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But whilst England had been thus preparing for the augmentation of the navy, America had been aiming a blow at the efficiency of that navy, which must for years, if successful, have prostrated our whole maritime forces, and exposed our shores to the easiest invasion. This intended blow was nothing less than the destruction of our great naval dockyards and arsenals, and military storehouses, at Portsmouth and Plymouth. The chief agent in this infamous design, if the evidence of a miscreant can be believed, was Silas Deane. On the 7th of December the rope-house of the Royal Dockyard at Portsmouth was found to be on fire. By active exertions it was got under, after it had destroyed that building, and was imagined to be an accident. But on the 15th of January, 1777, one of the officers of the dockyard found a machine and combustibles concealed in the hemp in the hemp-house of the same dockyard. Suspicion now fell on a moody, silent artisan, who, on the day of the fire, had been looking about the dockyard, and who, by some chance, had got locked up in the rope-house the night before. His name was not known, but the[234] fact only that he was a painter, and had been called John the Painter. Government immediately offered a reward of fifty pounds for his apprehension; the same sum, with a strange simplicity, being offered to him if he would surrender himself for examination. Nothing, however, could be learned of him in Portsmouth or the country round; but fresh fires were now breaking out at Plymouth Dockyard and on the quays of Bristol. At Plymouth the fire was instantly checked, and the perpetrator was nearly seized. At Bristol the fire was laid near a narrow, deep creek, crowded with shipping, which was nearly dry at low water, so that it was impossible to get the shipping out. Six or seven warehouses were destroyed, but the shipping escaped. In another house at Bristol combustibles were discovered, and the alarm became general that the American incendiaries, having failed to burn New York, were come to England to burn our dockyards and maritime houses. Fortunately, in the beginning of February, a man was apprehended for the perpetration of a burglary at Odiham, in Hampshire; and, by the activity of Sir John Fielding, the London magistrate, he was identified as John the Painter. When brought before Sir John and other magistrates in town, the man conducted himself with tact and address. Though closely examined and cross-questioned by some of the members of the Privy Council, by Lords of the Admiralty, and other officers of the board, he maintained the scrutiny without betraying any embarrassment, or letting anything escape him that could in any degree incriminate him. A confession was, however, wormed out of him by another painter, named Baldwin. Silas Deane, John the Painter declared, according to Baldwin's evidence, had encouraged him to set fire to the dockyards of Plymouth and Portsmouth, Woolwich and Chatham, as the most effectual means of disabling Great Britain; that he gave him bills to the amount of three hundred pounds on a merchant in London, and promised to reward him according to the amount of service he should do to the American cause. Before his execution he freely admitted the truth of the charges against him. He confessed to having twice attempted to fire the dockyard at Plymouth, and to burning the warehouses at Bristol, having in vain endeavoured to deposit his combustibles on board the ships. He, moreover, stated that he had a recommendation from Silas Deane to Dr. Bancroft, in London, to whom he had declared that he would do all the harm he could to England; that the doctor did not approve of his conduct, but had, at his request, promised not to betray him.

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On the 16th of April Parliament was dissolved and the elections were conducted with immense party heat. Each side did all in its power, by fair means and foul, to increase its adherents. Sir Robert used the persuasives for which he became so famous, that he boasted "every man had his price," and if we are to believe the journals of the day, the Opposition were not at all behind him, as far as their ability went. They made ample use, too, of the Septennial Act, the Riot Act, the Excise scheme, and the unrecompensed commercial claims on Spain. They declared the neutrality preserved under such circumstances disgraceful to the country, though they would have been the first to have denounced Ministers had they gone to war. They gained several seats, but when the Parliament met in January, 1735, it was soon discovered that, though less, the majority was as steady as ever, and the Opposition having tried their strength against it for a few times, became greatly depressed for a while. Bolingbroke quitted the country, and settled himself at Chanteloup, in Lorraine.Buonaparte determined to overwhelm both Spanish and British by numbers. He had poured above a hundred thousand men across the Pyrenees, and had supplied their places in France by two enormous conscriptions of eighty thousand men each. He now followed them with the rapidity of lightning. From Bayonne to Vittoria he made the journey on horseback in two days. He was already at Vittoria a week before the British army, under Sir John Moore, had commenced its march from Lisbon. It was his aim to destroy the Spanish armies before the British could come upand he accomplished it. The Spanish generals had no concert between themselves, yet they had all been advancing northward to attack the French on different parts of the Ebro, or in the country beyond it. It was the first object of Napoleon to annihilate the army of Blake, which occupied the right of the French army in the provinces of Biscay and Guipuzcoa. Blake was attacked by General Lefebvre on the last of October, on ground very favourable to the Spaniards, being mountainous, and thus not allowing the French to use much artillery; but, after a short fight of three hours, he was compelled to fall back, and for nine days he continued his retreat through the rugged mountains of Biscay, with his army suffering incredibly from cold, hunger, drenching rains, and fatigue. There was said to be scarcely a shoe or a greatcoat in the whole force. Having reached Espinosa de los Monteros, he hoped to rest and recruit his troops, but Lefebvre was upon him, and he was again defeated. He next made for Reynosa, a strong position, where he hoped to recollect his scattered army; but there he received the news of the[567] defeat of Belvedere, from whom he hoped for support. The French were again upon and surrounding him, and he was compelled to order his army to save themselves by dispersing amongst the mountains of Asturias, whilst himself and some of his officers escaped, and got on board a British vessel.
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FORE:George Grenville succeeded to both Bute and Dashwood, becoming first Lord of the Treasury and Chancellor of the Exchequer, and the king announced that he had intrusted the direction of affairs to him, and the Lords Egremont and Halifax, the Secretaries of State, whence they soon acquired the name of "The Triumvirate." The Duke of Bedford quitted his post as ambassador at Paris, and was succeeded by the Earl of Hertford. The Earl of Sandwich became head of the Admiralty, and the Earl of Shelburne head of the Board of Trade. Old Marshal Ligonier was removed from the post of Master of the Ordnance to make way for the Marquis of Granby, but received a peerage. These changes being completed, the king closed the Session of Parliament on the 19th of April, with a speech, in which he declared the peace honourable to his Crown, and beneficial to his people.
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But Catherine's ally, Joseph, was fast sinking, and his mortal sun was going down amid storm clouds, all collected by his reckless disregard of the rights of his subjects, great reformer as he desired to be. He had wantonly invaded the ancient constitution of Hungary; and on this the high-spirited and martial Hungarians had expressed their determination not to submit to it. They insisted that he should restore the regalia of their ancient kingdom, which he had carried off from Buda, the old capital, and where the Austrian emperors, as kings of Hungary, were always expected to be crowned, and to take the oath to observe the constitution. The Turks, already in possession of the banat of Temeswar, invited their alliance, offering to assist them in driving out the Austrians, and establishing their independence. Joseph, alarmed at this prospect, made haste to avert the danger by conceding the restoration of the Hungarian constitution and of the regalia, and the generous Hungarians were at once appeased.The year 1799 opened by the discussion of this new scheme of revenue. It was a mode of making every man tax himself by stating the amount of his income, on which he was to be charged ten per cent., with the exception only of such persons whose incomes were less than two hundred pounds per annum, who were to be charged less than ten per cent. It was to include all who had more than sixty pounds a-year. Pitt calculated the income of the nation at a hundred and two million pounds, which would thus produce a revenue of ten million pounds. To make this excellent device the more palatable, the increase in the assessed taxes made in the preceding Session was to be repealed. To such a degree did the nation trust the great Minister, that this tax was carried through both Houses with comparatively little difficulty.Mr. Vansittart introduced some financial measures which effected a material saving. He proposed a plan for reducing the interest of the Navy Five per Cents. to four per cent. Holders not signifying their dissent were to have one hundred and five pounds in a New Four per Cent. stock, and persons dissenting were to be paid off in numerical order. By this scheme an annual saving to the public of one million one hundred and forty thousand pounds would be effected; besides a further saving of upwards of ninety thousand pounds of annual charge, which would be gained by similar reduction of the Irish Five per Cents. The high prices of the public funds obviated all difficulty in the execution of this financial operation, and the holders of the Five per Cent. stock found it expedient to acquiesce in the Minister's terms. The dissentients were in number only one thousand seven hundred and seventy-eight, and the stock held by them amounted to two million six hundred and fifteen thousand nine hundred and seventy-eight pounds, not a fifteenth part of the Five per Cent. capital. Another operation related to what was called "The Dead Weight Annuity." The amount of military and naval pensions and civil supernumeraries was about five millions annually. Accordingly Mr. Vansittart brought forward an amended scheme for relieving the immediate pressure of this dead weight by extending it over a longer term of years than the natural lives of the annuitants. For this purpose an annuity of two million eight hundred thousand pounds was appropriated out of the existing revenue for forty-five years, invested in trustees for the discharge of the then payments, which for that year were estimated at four million nine hundred thousand pounds, subject to a yearly diminution by deaths. It was computed that, according to the ordinary duration of human life, the annuities for the lives of the then holders would be equal to the annuity of two million eight hundred thousand pounds for forty-five years. The trustees were therefore empowered to sell from time to time such portions of this annuity as would provide the funds required for the payment of the dead weight, according to a computation made of the amount which would probably be due in each year. The Bank of England became the contractor for a portion of the annuity. There was no novelty of principle in the project; it was only the old one of anticipating distant resources by throwing the burden of the existing generation on the next. It had the further disadvantage of incurring a useless expense for management; whereas the Sinking Fund, amounting at the time to about five millions, might have been applied to existing exigencies, and a real saving effected.On the appointed day the two Houses of Parliament, the officers of State, the judges, all in their robes of state, the queen, and princes and princesses, attended the king on this solemn occasion. The streets were crowded with the inhabitants; the Lord Bishop of London, and the Dean and Canons of St. Paul's received him at the door. His entrance was announced by the sound of martial music from military bands on the outside, and the roar of the organs and the voices of five thousand children of the City charity schools inside, singing the Hundredth psalm. On walking across the area, under the great dome, the king was deeply affected, and observed to the Bishop of London and the Dean of St. Paul's, "I now feel that I have been ill." After the singing of the Te Deum, and the firing of the Tower and Park guns, the procession returned to St. James's as it had come. The popularity of the king was unbounded, and so was that of the great Minister who had stood by him in the hour of his adversity. Pitt was now at the zenith of his career.
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