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ONE:FIVE-SHILLING PIECE OF THE SOUTH SEA COMPANY.

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THREE:Thus this mighty armada��of which such high things were expected��was dispersed; Rodney, sending part of his fleet to Jamaica, proceeded to join Arbuthnot at New York, with eleven ships of the line and four frigates. The news of his approach reached the French and Americans there, at the same time as that of the return of De Guichen to Europe, and spread the greatest consternation. To consider what was best to do in the circumstances, a meeting was proposed at Hartford, in Connecticut, between Washington and Rochambeau, which took place on the 21st of September. At this moment a discovery took place which had a startling effect on the Americans, and was calculated to inspire the most gloomy views of their condition. General Arnold, who had fought his way up from the humble station of a horse-dealer to that which he now held, had, on all occasions, shown himself an officer of the most daring and enterprising character. Having been appointed military governor of Philadelphia, after its evacuation by General Clinton in 1778, as a post where he might recover from the severe wounds which he had received in the recent campaign, he began a style of living much too magnificent for his finances, for, with all his abilities, Arnold was a vain and extravagant man. He married a beautiful young lady of that city of Royalist origin. Rumours to his disadvantage were soon afloat, originating in this cause, for whatever he did was regarded by the staunch Whigs with an unfavourable eye. Congress was the more ready to listen to charges against him, because, involved himself in debts incurred by his extravagance, he pressed them for large claims upon them, which they had no means to satisfy. Commissioners were selected by them to examine his claims, and these men, appointed for their hard, mean natures, reduced his demands extremely. Arnold uttered his indignation at such treatment in no measured terms, and the consequence was that he was arrested, tried by a court-martial, on various charges of peculation in his different commands, and for extortion on the citizens of Philadelphia. Some of these were declared groundless, but others were pronounced to be proved, and Arnold was condemned to be reprimanded by the Commander-in-Chief. This put the climax to his wrath. Washington, who had, in Arnold's opinion, been as unjustly exalted and favoured for his defeats and delays, as he himself had been envied and repressed for his brilliant exploits, was of all men the one from whom he could not receive with patience a formal condemnation. This sentence was carried into effect in January, 1779, and Arnold, stung to the quick, was prepared to perpetrate some desperate design. The opportunity came when he was placed in command of West Point, on the Hudson, which was the key to all intercourse between the Northern and Southern States.