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ONE:CHAPTER VII. REIGN OF GEORGE III. TWO: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.THREE:On the 17th of October the peace between France and Austria was definitively signed at Campo Formio. To France Austria ceded Belgium, the left bank of the Rhine, including Mayence, the Ionian islands, and the Venetian possessions in Albania, both of which really belonged to Venice. Venice itself, and its territory as far as the Adige, with Istria and Venetian Dalmatia on the other side of the Adriatic, were made over to Austria without ceremony. The Milan and Mantuan states were given up by Austria, with Modena, Massa, Carrara; and the papal provinces of Bologna, Ferrara, Ravenna, and the rest of them, as far as the Rubicon, were included in a new so-called Cisalpine Republic belonging to France. Tuscany, Parma, Rome, and Naples were still called Italian, but were as much, Naples excepted, in the power of France as the rest. In fact, except Venetia, which Austria secured, all Italy except Naples was subjected to the French, and the regular process of democratising was going on, in the latter kingdom, for an early seizure.Commodore Hotham, with only five ships of the line, a bomb-vessel, and some frigates, conveyed Major-General Grant and this force to the West Indies, being nearly the whole way within a short sail of D'Estaing and his much superior fleet, without knowing it. Grant's destination was to protect Dominica; but, before his arrival, Marshal de Bouill��, Governor-General of Martinique, had landed with two thousand men, and had compelled Lieutenant-Governor Stewart, who had only about one hundred regular troops and some indifferent militia for its defence, to surrender. Grant being too late to save Dominica, turned his attention to St. Lucia, being conveyed thither by the joint fleet of Hotham and Barrington. They had scarcely made a good footing on the island when D'Estaing's fleet hove in sight. He had twelve sail-of-the-line, numerous frigates and transports, and ten thousand men on board, and the English would have had little chance could he have landed. But the British fleet resolutely attacked him, and, after several days' struggle, prevented his landing more than half his troops. These were so gallantly repulsed by Brigadier Medows, who was at the head of only one thousand five hundred men, that, on the 28th December, D'Estaing again embarked his troops, and quitted the island. The original French force under Chevalier de Michaud then surrendered, and St. Lucia was won, though Dominica was lost.