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ONE:There were various actions at sea, in one quarter or other. Sir Hyde Parker, convoying a merchant fleet from the Baltic, on the 5th of August fell in with Admiral Zouttman near the Dogger Bank, also convoying a fleet of Dutch traders. An engagement took place, Zouttman having a few men-of-war more than Parker. The engagement was terrible. The ships on both sides were severely damaged, and the Hollandia��a sixty-four-gun ship of Zouttman's��went down with all its crew. Many of the other ships were with difficulty kept afloat. On reaching the Nore, the king and the Prince of Wales went on board, where they highly complimented both Parker and the rest of the officers. On the 12th of December Admiral Kempenfeldt, with thirteen ships-of-the-line, discovered, off Ushant, the French fleet, under De Guichen, convoying a fleet of transports and merchantmen, bound, some for the East and others for the West Indies, with troops and stores. The fleet of De Guichen was far superior to that of Kempenfeldt, but, the convoy being at a considerable distance from the transports and traders, Kempenfeldt adroitly made himself master of twenty sail of these vessels, and sailed off with them; and within a few days afterwards he[286] captured five more of these ships. There were also other fights of minor importance.On the opening of the Session, the king called the attention of Parliament to the state of Canada. That colony had flourished since it had come into the possession of Britain, especially since the passing of the Bill of 1774, which had given freedom to the Roman Catholic church there, the church of the French inhabitants. But one part of the colony was still inhabited by the descendants of the French, and another by those of the English and Americans. It was, therefore, found desirable to put an end to the competition which still existed, from differences of faith and of national sentiments and customs, between the two races, by dividing the colony into two provinces, the one inhabited by the French to be called Lower Canada, and the other, inhabited by the British, to be called Upper Canada. On the 25th of February the king sent a message to Parliament, proposing to carry out this division; and on the 4th of March Pitt moved to bring in a Bill for that purpose, and stated the intended plan of arrangement. Besides an elective assembly, each province was to have a Council, the members of which were to be appointed for life, with hereditary succession to the descendants of such as should be honoured with hereditary titles, which titles were to confer on an inhabitant of either province the dignity of a member of the Council. Landed property was to be held according to English law, in soccage tenure; the Habeas Corpus was to be established in both provinces. An allotment of lands was to be made for the Protestant clergy; but, as the majority of the inhabitants in the Lower Province would be Catholic, the Council and Assembly were empowered to allot lands also to their clergy, which allotment, on sanction of the Crown, was to be valid without intervention of Parliament. No taxes were to be imposed by the British Government except such as were necessary for the regulation of commerce, and these were to be levied by the provincial legislature to prevent any heartburnings like those which had occurred in the American States. TWO:

ONE:The conditions proposed by Lord Cornwallis were, that Tippoo should cede one-half of his territories; that he should pay three crores and thirty lacs of rupees; that he should restore all the prisoners taken since the time of his father, Hyder Ali; and that two of his eldest sons should be given up as hostages for the faithful fulfilment of the articles. On the 26th the boys, who were only eight and ten years old, were surrendered, and part of the money was sent in. Cornwallis received the little princes very kindly, and presented each of them with a gold watch, with which they were delighted. When, however, it came to the surrender of the territory, Tippoo refused and began to make preparations for resistance; but Lord Cornwallis's active firmness soon compelled him to submit. He ordered the captive children to be sent away to Bangalore, and prepared to storm the town, for which both our soldiers and those of the Nizam were impatient. Tippoo gave way; and the surrender of territory according to the treaty was completed.

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THREE:From the Painting by J. Trumbull.��I don��t see how�� Mr. Everdail was thinking, as was Sandy, that with everyone whom they suspected, except the maid Miss Serena had accused, present in that room, the loss of the carefully hidden object must be impossible.