TWO: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.Frederick was soon aware that peace was out of the question without farther fighting. Before the 1st of April he had one hundred and forty-five thousand men ready for the field. Of these, fifty-three thousand were in Silesia. Many of the Austrian deserters were induced to join his standards. But the most important event secured was forming a subsidy treaty with England. The British cabinet, alarmed in view of the power which the successful prosecution of the war on the part of the allies would give to France, after much hesitation, came to the aid of Frederick, whom they hated as much as they feared France. On the 11th of April, 1758, a treaty was signed between the English court and Frederick, containing the following important item:

TWO: