cherished the most brilliant expectations, and had formed schemes truly magnificent. Concluding that the English would be speedily expelled, or would of their own accord depart from America, the chief object was to be the invasion of Canada, from three different points, the French being invited to co-operate. Washington, on learning this vast design, took the utmost pains to prove its futility, and it was finally abandoned.

In fact, both the civil and military strength of the union was now at a lower ebb than at any time since the struggle commenced. The members of Congress had originally consisted of the ablest men in America, animated by the most ardent zeal, and implicitly obeyed by all the votaries of their cause. After the Declaration of Independence, however, a new modification of the government was considered necessary. A constitution was drawn up, and, after many delays and difficulties, brought into operation, early in 1779, under which the state legislatures were invested with all the most important powers, resigning only a few which were judged indispensable for united action. Congress still retained the direction of foreign affairs, of the war, and consequently of the naval and military force; but to furnish men and supplies for these services they had no resource, except requisitions addressed to the state legislatures. The latter had the complete option whether they should or should not comply, and had many motives which strongly inclined them to the latter alternative; indeed compliance could only be afforded by measures very unpopular, and which would have much disobliged their constituents. The demands of Congress were thus only partially and unequally fulfilled, and the levies never approached the amount at which they were nominally fixed.

The financial state of the country, too, was embarrassing in the extreme. The colonists, at the beginning of the war, had been very little accustomed to any serious taxation; and having taken arms expressly to resist it, would have ill brooked paying a larger amount for their expenses than Britain had ever demanded. It was not till November, 1777, that Congress ventured to make a requisition of five millions of dollars annually, to which the states but faintly responded. France and Spain gave some assistance, first in gift, and then in loan; but as their own finances grew embarrassed, these contributions became very stinted. The commissioners endeavoured to treat for loans with European capitalists, especially in Holland, and with this view drew a flattering picture of the future prosperity of the new republic,

and her ultimate power to repay even the largest advances; but the Dutch were not inclined to be satisfied with such security, and money could be got only in small amount, and on exorbitant terms. One house made a somewhat liberal offer, but on condition of carrying on the whole trade of the Union, and holding all its real and personal property in mortgage. In these circumstances, the States had no resource except paper-money. In 1775, they issued three millions of dollars; and this moderate amount being easily absorbed in the circulation, proved an available resource. They were thus encouraged to pour forth repeated issues, which at the beginning of 1779 had risen to above a hundred millions, and in the course of the year to double that amount, which they had pledged themselves not to exceed. The necessary consequence was a depreciation of the notes to about a fortieth of their nominal value, and hence a miserable derangement in all mercantile and money transactions. The evil was aggravated, too, by preposterous remedies. The paper at its nominal value was made a legal tender for all debts; and by this iniquitous measure, which Washington deeply regretted, many creditors, both public and private, were defrauded, but no permanent relief could be afforded. As the articles furnished to the army, like all others, rose to an enormous nominal value, they were so ignorant as to fix a maximum, above which they should not be received. The

consequence was, that at this inadequate rate none could be got; and the army would have perished had not this absurd regulation been rescinded.

IN Europe, however, a transaction took place highly auspicious to the American cause. Spain, after long hesitation, determined to join the confederacy; and, on the 12th April, 1779, concluded for that purpose a secret treaty with France. She had for some time offered and even pressed herself as a mediator, having ultimately proposed a congress of all the contending powers at Madrid, and during the negotiation, a general suspension of arms; but as it was made a condition that in the mean time the colonies were to remain actually independent, Britain, though without expressing any hostile feeling, declared such terms inadmissible. The other party, however, was not disposed to stop here. On the 16th June, D'Almadovar, the Spanish ambassador, took his departure, after delivering a note, complaining not only of the rejection of his sovereign's friendly overtures, but of sundry violences committed on his subjects in the course of the war, and for which he was determined to seek redress. This was followed by a long manifesto, in which grievances were enumerated to the number of eighty-six, and the necessity stated of reducing the British maritime power. These documents were soon answered by letters of marque, followed by open war.

HEIR interior strength, as already observed, by no means corresponded with the splendour of their foreign relations; and Washington had clearly demonstrated to Congress the expediency of confining themselves to a defensive warfare. Clinton, on the other hand, did not attempt to penetrate far into the interior from New York; but engaged in some extensive expeditions for the destruction of stores and shipping. The most important was undertaken in May by a squadron under Sir George Collyer, upon whom the command of the naval force had now devolved, and having on board eighteen hundred men commanded by General Matthews. The object was the naval yard at Gosport on the Chesapeake, with the military stores and shipping at Portsmouth and Norfolk, the two chief seats of commerce in Virginia. The only defence was a fort with one hundred and fifty men on Elizabeth river near Portsmouth; and this garrison, considering themselves too weak to resist, fled into a morass called the