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THREE:He despatched a squadron of ten ships of the line to the Mediterranean, under Admiral Haddock; another strong squadron sailed for the West Indies; letters of marque and reprisal were issued to the merchants; and troops and stores were forwarded to Georgia, which the Spaniards had threatened to invade. He gave directions to all merchants in Spanish ports to register their goods with a public notary in case of a rupture. These measures produced a rapid change of tone at the Spanish Court. On comparing the demands on both sides for damages sustained in commerce, there appeared a balance in favour of England of two hundred thousand pounds. Against this, the Spaniards demanded sixty thousand pounds in compensation for the ships taken by Admiral Byng in 1718��a claim which Stanhope would never allow, but which had been recognised in the Treaty of Seville, and was now, therefore, acknowledged. This reduced the sum to a hundred and forty thousand pounds, which the Spanish Court proposed should be paid by assignments on the American revenues. This, the Ministers were well aware, might involve the most endless delays and uncertainties, and they certainly showed a most conceding spirit by allowing a deduction of forty-five thousand pounds for prompt payment at Madrid. The sum was now reduced to ninety-five thousand pounds; and this being agreed to, a convention was signed on the 14th of January, 1739.

FORE:��Haven��t laid eyes on the lady.��

TWO:With these superb demonstrations on the part of England terminated the war. Her enemies discovered that her hoped-for fall was yet far off, and were much more inclined to listen to overtures of peace, of which they were now all in great need. These negotiations had been begun by Fox immediately on the accession of the Rockingham Ministry to office. Unfortunately the division of work between two Secretaries of State entailed a double negotiation. To Fox as Secretary of Foreign Affairs fell the arrangements for peace with France and Spain and Holland, to Lord Shelburne as Colonial Secretary fell all arrangements connected with the colonies, that is, with the United States. It was most important that the two Ministers should be in close accord. Unfortunately their views differed widely. Fox was for the immediate recognition of the independence of America; Shelburne urged that to give independence at once was to throw away a trump card. Further, Mr. Oswald, Shelburne's agent, was duped by Franklin into accepting from him a paper, in which the surrender of Canada was laid down as a basis of peace. This paper Shelburne probably showed to the king, but, with great duplicity, refrained from mentioning its existence to his colleagues. On the 8th of May Mr. Thomas Grenville, Fox's agent, arrived at Paris, and negotiations were begun in real earnest. But the na?ve confession of Oswald that peace was absolutely necessary to England greatly hampered his efforts, and in a conversation with Lord Shelburne's envoy the existence of the Canada paper leaked out. Fox was naturally furious, but the majority of the Cabinet were opposed to him, and voted against his demand for the immediate recognition of American independence. He only refrained from resigning because he would not embitter Lord Rockingham's last moments in the world. Lord Shelburne became Premier in July.

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