Contemporaneously with and for some time after the short episode of Alberoni's ministry and Spain's ambition, a struggle was going on around the shores of the Baltic which must be mentioned, because it gave rise to another effectual illustration of the sea power of England, manifested alike in the north and south with a slightness of exertion which calls to mind the stories of the tap of a tiger's paw. The long contest between Sweden and Russia was for a moment interrupted in 1718, by negotiations looking to peace and to an alliance between the two for the settlement of the succession in Poland and the restoration of the Stuarts in England. This project, on which had rested many of Alberoni's hopes, was finally stopped by the death in battle of the Swedish king. The war went on; and the czar, seeing the exhaustion of Sweden, purposed its entire subjugation. This destruction of the balance of power in the Baltic, making it a Russian lake, suited neither England nor France; especially the former, whose sea power both for peace and war depended upon the naval stores chiefly drawn from those regions. The two western kingdoms interfered, both by diplomacy, while England besides sent her fleet. Denmark, which was also at war with her traditional enemy Sweden, readily yielded; but Peter the Great chafed heavily under the implied coercion, until at last orders were sent to the English admiral to join his fleet to that of the Swedes and repeat in the Baltic the history of Cape Passaro. The czar in alarm withdrew his fleet. This happened in 1719; but Peter, though baffled, was not yet subdued. The following year the interposition of England was repeated with greater effect, although not in time to save the Swedish coasts from serious injury; but the czar, recognizing the fixed purpose with which he had to deal, and knowing from personal observation and practical experience the efficiency of England's sea power, consented finally to peace. The French claim much for their own diplomacy in this happy result, and say that England supported Sweden feebly; being willing that she should lose her provinces on the eastern shore of the Baltic because Russia, thus brought down to the sea-shore, could more easily open to English trade the vast resources of her interior. This may very possibly be true, and certainty can be felt that British interests, especially as to commerce and sea power, were looked after; but the character of Peter the Great is the guarantee that the argument which weighed most heavily with him was the military efficiency of the British fleet and its ability to move up to his very doors. By this Peace of Nystadt, August 30, 1721, Sweden abandoned Livonia, Esthonia, and other provinces on the east side of the Baltic. This result was inevitable; it was yearly becoming less possible for small States to hold their own.

It can readily be understood that Spain was utterly discontented with the terms wrung from her by the Quadruple Alliance. The twelve years which followed are called years of peace, but the peace was very uncertain, and fraught with elements of future wars. The three great grievances rankling with Spain were—Sicily and Naples in the possession of Austria, Gibraltar and Mahon in the hands of England, and lastly, the vast contraband trade carried on by English merchants and ships in Spanish America. It will be seen that England was the active supporter of all these injuries; England therefore was the special enemy of Spain, but Spain was not the only enemy of England.

The quiet, such as it was, that succeeded the fall of Alberoni was due mainly to the character and policy of the two ministers of France and England, who agreed in wishing a general peace. The policy and reasons of the French regent are already known. Moved by the same reasons, and to remove an accidental offence taken by England, Dubois obtained for her the further concession from Spain, additional to the commercial advantages granted at Utrecht, of sending a ship every year to trade in the West Indies. It is said that this ship, after being anchored, was kept continually supplied by others, so that fresh cargo came in over one side as fast as the old was sent ashore from the other. Dubois and the regent both died in the latter half of 1723, after an administration of eight years, in which they had reversed the policy of Richelieu by alliance with England and Austria and sacrificing to them the interests of France.

The regency and the nominal government of France passed to another member of the royal family; but the real ruler was Cardinal Fleuri, the preceptor of the young king, who was now thirteen years of age. Efforts to displace the preceptor resulted only in giving him the title, as well as the power, of minister in 1726. At this time Sir Robert Walpole had become prime minister of England, with an influence and power which gave him practically the entire guidance of the policy of the State. The chief wish of both Walpole and Fleuri was peace, above all in western Europe. France and England therefore continued to act together for that purpose, and though they could not entirely stifle every murmur, they were for several years successful in preventing outbreaks. But while the aims of the two ministers were thus agreed, the motives which inspired them were different. Walpole desired peace because of the still unsettled condition of the English succession; for the peaceful growth of English commerce, which he had ever before his eyes; and probably also because his spirit, impatient of equals in the government, shrank from war which would raise up stronger men around him. Fleuri, reasonably secure as to the throne and his own power, wished like Walpole the peaceful development of his country, and shrank from war with the love of repose natural to old age; for he was seventy-three when he took office, and ninety when he laid it down in death. Under his mild administration the prosperity of France revived; the passing traveller could note the change in the face of the country and of the people; yet it may be doubted whether this change was due to the government of the quiet old man, or merely to the natural elasticity of the people, no longer drained by war nor isolated from the rest of the world. French authorities say that agriculture did not revive throughout the country. It is certain, however, that the maritime prosperity of France advanced wonderfully, owing mainly to the removal of commercial restrictions in the years immediately following the death of Louis XIV. The West India islands in particular throve greatly, and their welfare was naturally shared by the home ports that traded with them. The tropical climate of Martinique, Guadeloupe, and Louisiana, and cultivation by slaves, lent themselves readily to the paternal, semi-military government which marks all French colonies, but which produced less happy results in the bitter weather of Canada. In the West Indies, France at this time obtained a decided preponderance over England; the value of the French half of Hayti was alone equal to that of all the English West Indies, and French coffee and sugar were driving those of England out of European markets. A like advantage over England in the Mediterranean and Levant trade is asserted by French historians. At the same time the East India Company was revived, and its French depot, whose name tells its association with the East, the Breton town of L'Orient, quickly became a splendid city. Pondicherry on the Coromandel coast, and Chandernagore on the Ganges, the chief seats of French power and commerce in India, grew rapidly; the Isle of Bourbon and the Isle of France, now the Mauritius, whose position is so well suited for the control of the Indian Ocean, became, the one a rich agricultural colony, the other a powerful naval station. The monopoly of the great company was confined to the trade between home and the chief Indian stations; the traffic throughout the Indian seas was open to private enterprise and grew more rapidly. This great movement, wholly spontaneous, and even looked on with distrust by the government, was personified in two men, Dupleix and La Bourdonnais; who, the former at Chandernagore and the latter at the Isle of France, pointed out and led the way in all these undertakings, which were building up the power and renown of the French in the Eastern seas. The movement was begun which, after making France the rival of England in the Hindustan peninsula, and giving her for a moment the promise of that great empire which has bestowed a new title on the Queen of Great Britain, was destined finally to falter and perish before the sea power of England. The extent of this expansion of French trade, consequent upon peace and the removal of restrictions, and not due in any sense to government protection, is evidenced by the growth of French merchant shipping from only three hundred vessels at the death of Louis XIV., to eighteen hundred, twenty years later. This, a French historian claims, refutes "the deplorable prejudices, born of our misfortunes, that France is not fitted for sea commerce, the only commerce that indefinitely extends the power of a nation with its sphere of activity."[83]

This free and happy movement of the people was far from acceptable to Fleuri, who seems to have seen it with the distrust of a hen that has hatched ducklings. Walpole and himself were agreed to love peace; but Walpole was obliged to reckon with the English people, and these were prompt to resent rivalry upon the sea and in trade, however obtained. Moreover, Fleuri had inherited the unfortunate policy of Louis XIV.; his eyes were fixed on the continent. He did not indeed wish to follow the course of the regency in quarrelling with Spain, but rather to draw near to her; and although he was not able for a time to do so without sacrificing his peace policy, because of Spain's restless enmity to England, yet his mind was chiefly bent upon strengthening the position of France on the land, by establishing Bourbon princes where he could, and drawing them together by family alliances. The navy was allowed to decay more and more. "The French government abandoned the sea at the very moment that the nation, through the activity of private individuals, was making an effort to regain it." The material force fell to fifty-four ships-of-the-line and frigates, mostly in bad condition; and even when war with England had been imminent for five years, France had but forty-five ships-of-the-line to England's ninety. This difference foreshadowed the results which followed a quarter of a century of war.

During the same period Walpole, relying upon Fleuri's co-operation, resolutely set his face against open war between England and Spain. The difficulties caused by the threatening and exasperating action of the latter country, and of such allies as she from time to time could raise, were met, and for a while successfully met, by naval demonstrations,—reminders of that sea power which one nation after another had felt and yielded to. In 1725, the Spanish king and the emperor agreed to sink their long-standing feud, and signed a treaty at Vienna, in which there was a secret clause providing that the emperor would support the claim of Spain to Gibraltar and Port Mahon, by arms if necessary. Russia also showed a disposition to join this confederacy. A counter-alliance was formed between England, France, and Prussia; and English fleets were sent, one to the Baltic to awe the czarina, another to the coast of Spain to check that government and protect Gibraltar, and a third to Porto Bello, on the Spanish Main, to blockade the fleet of galleons there assembled, and by cutting off the supplies remind the Spanish king at once of his dependence upon the specie of America, and of England's control of the highway by which it reached him. Walpole's aversion to war was marked by giving the admiral at Porto Bello the strictest orders not to fight, only to blockade; the consequence of which, through the long delay of the squadron upon the sickly coast, was a mortality among the crews that shocked the nation, and led, among other causes, to the minister's overthrow many years later. Between three and four thousand officers and men, including Admiral Hosier himself, died there. Walpole's aim, however, was reached; though Spain made a foolish attack by land upon Gibraltar, the presence of the English fleet assured its supplies and provisions and averted the formal outbreak of war. The emperor withdrew from the alliance, and under English pressure also revoked the charter of an East India company which he had authorized in the Austrian Netherlands, and which took its name from the port of Ostend. English merchants demanded the removal of this competitor, and also of a similar rival established in Denmark; both which concessions the English ministry, backed by Holland, obtained. So long as commerce was not seriously disturbed, Walpole's peace policy, accompanied as it naturally was by years of plenty and general content, was easily maintained, even though Spain continued threatening and arrogant in her demands for Gibraltar; but unfortunately she now entered more deeply upon a course of annoyance to English trade. The concessions of the Asiento, or slave-trade, and of the annual ship to South America have been mentioned; but these privileges were but a part of the English commerce in those regions. The system of Spain with regard to the trade of her colonies was of the narrowest and most exclusive character; but, while attempting to shut them out from foreign traffic, she neglected to provide for their wants herself. The consequence was that a great smuggling or contraband trade arose throughout her American possessions, carried on mainly by the English, who made their lawful traffic by the Asiento and the yearly ship subserve also the unlawful, or at least unauthorized, trade. This system was doubtless advantageous to the great body of the Spanish colonists, and was encouraged by them, while colonial governors connived at it, sometimes for money, sometimes swayed by local public opinion and their own knowledge of the hardships of the case; but there were Spanish subjects who saw their own business injured by the use and abuse of English privileges, and the national government suffered both in pocket and in pride by these evasions of the revenue. It now began to pull the strings tighter. Obsolete regulations were revived and enforced. Words in which the action of Spain in this old controversy have been described are curiously applicable to certain recent disputes to which the United States has been a party. "The letter of the treaty was now followed, though the spirit which dictated it was abandoned. Although English ships still enjoyed the liberty of putting into Spanish harbors for the purpose of refitting and provisioning, yet they were far from enjoying the same advantages of carrying on a friendly and commercial intercourse. They were now watched with a scrupulous jealousy, strictly visited by guarda-costas, and every efficient means adopted to prevent any commerce with the colonies, except what was allowed by the annual ship." If Spain could have confined herself to closer watchfulness and to enforcing in her own waters vexatious customs regulations, not essentially different from those sanctioned by the general commercial ideas of that day, perhaps no further harm would have resulted; but the condition of things and the temper of her government would not let her stop there. It was not possible to guard and effectually seal a sea-coast extending over hundreds of miles, with innumerable inlets; nor would traders and seamen, in pursuit of gain which they had come to consider their right, be deterred by fears of penalties nor consideration for Spanish susceptibilities. The power of Spain was not great enough to enforce on the English ministry any regulation of their shipping, or stoppage of the abuse of the treaty privileges, in face of the feelings of the merchants; and so the weaker State, wronged and harassed, was goaded into the use of wholly unlawful means. Ships-of-war and guarda-costas were instructed, or at least permitted, to stop and search English ships on the high seas, outside of Spanish jurisdiction; and the arrogant Spanish temper, unrestrained by the weak central government, made many of these visits, both the lawful and the unlawful, scenes of insult and even violence. Somewhat similar results, springing from causes not entirely different, have occurred in the relations of Spanish officials to the United States and American merchant-ships in our own day. The stories of these acts of violence coming back to England, coupled with cases of loss by confiscation and by the embarrassment of trade, of course stirred up the people. In 1737 the West India merchants petitioned the House of Commons, saying,—

"For many years past their ships have not only frequently been stopped and searched, but also forcibly and arbitrarily seized upon the high seas, by Spanish ships fitted out to cruise, under the plausible pretext of guarding their own coasts; that the commanders thereof, with their crews, have been inhumanly treated, and their ships carried into some of the Spanish ports and there condemned with their cargoes, in manifest violation of the treaties subsisting between the two crowns; that the remonstrances of his Majesty's ministers at Madrid receive no attention, and that insults and plunder must soon destroy their trade."

Walpole struggled hard, during the ten years following 1729, to keep off war. In that year a treaty signed at Seville professed to regulate matters, restoring the conditions of trade to what they had been four years before, and providing that six thousand Spanish troops should at once occupy the territory of Tuscany and Parma. Walpole argued with his own people that war would lose them the commercial privileges they already enjoyed in Spanish dominions; while with Spain he carried on constant negotiations, seeking concessions and indemnities that might silence the home clamor. In the midst of this period a war broke out concerning the succession to the Polish throne. The father-in-law of the French king was one claimant; Austria supported his opponent. A common hostility to Austria once more drew France and Spain together, and they were joined by the King of Sardinia, who hoped through this alliance to wrest Milan from Austria and add it to his own territory of Piedmont. The neutrality of England and Holland was secured by a promise not to attack the Austrian Netherlands, the possession of any part of which by France was considered to be dangerous to England's sea power. The allied States declared war against Austria in October, 1733, and their armies entered Italy together; but the Spaniards, intent on their long-cherished projects against Naples and Sicily, left the others and turned southward. The two kingdoms were easily and quickly conquered, the invaders having command of the sea and the favor of the population. The second son of the King of Spain was proclaimed king under the title of Carlos III., and the Bourbon Kingdom of the Two Sicilies thus came into existence. Walpole's aversion to war, leading him to abandon a long-standing ally, thus resulted in the transfer of the central Mediterranean to a control necessarily unfriendly to Great Britain.

But while Walpole thus forsook the emperor, he was himself betrayed by his friend Fleuri. While making the open alliance with Spain against Austria, the French government agreed to a secret clause directed against England. This engagement ran as follows: "Whenever it seems good to both nations alike, the abuses which have crept into commerce, especially through the English, shall be abolished; and if the English make objection, France will ward off their hostility with all its strength by land and sea." "And this compact was made," as the biographer of Lord Hawke points out, "during a period of intimate and ostentatious alliance with England itself."[84] "Thus the policy against which William III. had called on England and Europe to arm, at last came into existence." Had Walpole known of this secret agreement, it might have seemed to him an additional argument in favor of peace; for, his keen political sagacity warning him of the existence of a danger which he yet could not see, he told the House of Commons that "if the Spaniards had not private encouragement from powers more considerable than themselves, they would never have ventured on the insults and injuries which have been proved at your bar;" and he expressed the opinion that "England was not a match for the French and Spaniards too."

Fleuri had indeed given his old friend and fellow-statesman an ugly fall. The particular question which excited the two years' War of the Polish Succession, the choice of a ruler for a distracted kingdom fated soon to disappear from the list of European States, seems a small matter; but the turn imparted to European politics by the action of the powers engaged gives it a very different importance. France and Austria came to an arrangement in October, 1735, upon terms to which Sardinia and Spain afterward acceded, the principal points of which were as follows: The French claimant to the Polish throne gave up his claim to it, and received instead the duchies of Bar and Lorraine on the east of France, with the provision that upon his death they were to go to his son-in-law, the King of France, in full sovereignty; the two kingdoms of Sicily and Naples were confirmed to the Spanish Bourbon prince, Don Carlos; and Austria received back Parma. The Sardinian monarchy also got an increase to its Italian territory. France thus, under the peace-loving Fleuri, obtained in Bar and Lorraine an accession of strength which more warlike rulers had coveted in vain; and at the same time her external position was fortified at the expense of England, by the transfer of controlling positions in the central Mediterranean to an ally. Yet the heart of Fleuri might well have failed him as he remembered the secret agreement to check the commerce of England, and thought of her mighty sea power alongside of the decayed navy of France. That compact between France and Spain, to which the Two Sicilies acceded later, bore within it, in the then strained relations between England and Spain, the germ of the great wars between England and the House of Bourbon which issued in the creation of the British Empire and the independence of the United States.