TWO:The king was so pleased with the conduct of his son during this journey that, in a moment of unusual good-nature, he made him a present of a very extensive horse-breeding establishment near Tilsit, consisting of seven farms, all in the most perfect order, as every thing was sure to be which was under the control of Frederick William. The profits of this establishment added about ten thousand dollars to the annual income of the Crown Prince. He was quite overjoyed at the unexpected gift, and wrote to his sister Wilhelmina a letter glowing with satisfaction.The region through which this retreat and pursuit were conducted was much of the way along the southern slope of the Giant Mountains. It was a wild country of precipitous rocks, quagmires, and gloomy forests. At length Prince Charles, with his defeated and dispirited army, took refuge at K?nigsgraft, a compact town between the Elbe and the Adler, protected by one stream on the west, and by the other on the south. Here, in an impregnable position, he intrenched his troops. Frederick, finding them unassailable, encamped his forces in a position almost equally impregnable, a few miles west of the Elbe, in the vicinity of a little village called Chlum. Thus the two hostile armies, almost within sound of each other��s bugles, defiantly stood in battle array, each watching an opportunity to strike a blow.

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