As a rumour of the approaching visit of Lord Howe had reached the Spanish camp, all was in haste to anticipate his arrival, and take the huge fortress before he could succour it. Accordingly the great united fleet of Spain and France, which so lately had paraded in the English Channel, sailed into Algeciras Bay, and on the 13th of September the floating batteries were hauled out by a number of the ships, and anchored at regular distances, within six hundred yards of the English works. Whilst this extraordinary armada was approaching and disposing itself, tremendous fire was kept up from the land, with three hundred long guns and mortars, to divert the attention of the garrison; but old General Elliot was ready with his red-hot balls, and, the moment the floating batteries came within gunshot distance, he poured into them a most destructive fire-hail. The Spaniards, notwithstanding, placed and secured their monster machines in a very short time, and then four hundred cannon from land and sea played on the old rock simultaneously and incessantly. For some time the hot balls appeared to do no damage. The timbers, being of green wood, closed up after the balls, and so prevented their immediate ignition. In other cases, where smoke appeared, the water-engines dashed in deluges, and extinguished the nascent fire. But presently the fire from the batteries slackened; it was discovered that the balls—which had many of them pierced into the timbers three feet deep—were doing their work. The floating battery commanded by the Prince of Nassau, on board of which was also the engineer, D'Arcon, himself, was found smoking on the side facing the rock, at two o'clock in the day. No water could reach the seat of mischief, and by seven o'clock it had become so extensive as to cause the firing to cease, and to turn the thoughts of all to endeavours for escape. Rockets were thrown up as signals for the vessels to come up and take off the crews. But this was found impracticable. The garrison actually rained deluges of fire, and all approach to the monster machines was cut off. No vessel could draw near, except at the penalty of instant destruction. For four more hours the vaunted floating batteries remained exposed to the pitiless pelting of the garrison. Before midnight, the Talla Piedra, the greatest of the monster machines, and the flagship, Pastora, at her side, were in full flame, and by their light the indefatigable Elliot could see, with the more precision, to point his guns. Seven of the ten floating machines were now on fire; the guns aboard them had entirely ceased, and those on land, as if struck with wonder and despair, had become silent too.

It might have been imagined that this magnificent and destructive repulse would have convinced the allies that the siege was hopeless, but they were pretty well informed that General Elliot had well nigh exhausted his ammunition in this prodigal death-shower, and they had still their great combined fleet, snug in the narrow bay, with scouts in the Strait to prevent the carrying in of supplies. But on the 24th of September news arrived at Madrid that the fleet of Lord Howe was under weigh for Gibraltar. Howe's fleet of thirty-four sail-of-the-line, six frigates, and three fire-ships, though in the neighbourhood of one of fifty sail-of-the-line, besides a number of frigates and smaller vessels, managed to get into the bay of Gibraltar all safe, amid the wildest acclamations of soldiers and inhabitants. By the 18th of October all the store-ships had discharged their cargoes, and had passed through the Strait, and on the 19th Lord Howe followed them with his fleet. The enemy's fleet then came out after him, and the next day they were in the open ocean, and Howe proceeded to their leeward to receive them. Some of their vessels had suffered in the late gales, but they had still at least forty-four sail to Howe's thirty-four, and, having the weather-gauge, had every advantage. But after a partial firing, in which they received great damage from Howe, they hauled off and got into Cadiz bay. Howe, then dispatching part of his fleet to the West Indies and a second squadron to the Irish coast, returned home himself. The news of the grand defence of Gibraltar produced a wonderful rejoicing in England; thanks were voted by Parliament to the officers and privates of the brave garrison; General Elliot was invested with the Order of the Bath on the king's bastion in sight of the works which he had preserved, and on his return, in 1787, at the age of seventy, he was created a Peer as Lord Heathfield of Gibraltar.

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 naïve 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.

Upon the formation of the Shelburne Cabinet, and the news of Rodney's victory over De Grasse, the negotiations were still continued, Mr. Grenville only being recalled, and Mr. Alleyne Fitzherbert, afterwards Lord St. Helens, being put in his place. France, Spain, Holland, were all groaning under the cost and disasters of the war, yet keeping up an air of indifference, in order to enhance their demands. The Americans were more decided, for they were stimulated by the accounts of the wretched condition of affairs at home. It was represented to Franklin by Congress, that, however France or Spain might delay proposals for peace, it was necessary for the United States. The position of Franklin, nevertheless, was extremely difficult. There was the treaty of alliance between France and the States of 1778, strictly stipulating that neither party should conclude either peace or truce without the other. What added to the difficulty was, that France had, within the last two years, shown an unusual interest and activity of assistance. Franklin, in order to strengthen his hands for the important crisis, requested that other commissioners might be sent to Paris; and John Jay quickly arrived from Spain, John Adams from Holland, and Henry Laurens from London. The American Commissioners soon became strongly impressed with the sentiment that France and Spain were keeping back a peace solely for their own objects; and this was confirmed by a letter of M. de Marbois, the secretary of the French legation at Philadelphia, which had been seized by an English cruiser, and had been laid by Mr. Fitzherbert before them. This letter appeared to be part of a diplomatic correspondence between the French Minister, Vergennes, and the French Minister in America, which threw contempt on the claim which America set up to a share of the Newfoundland fisheries. It created a strong belief that France was endeavouring to keep America in some degree dependent on her; and Jay and Adams were extremely incensed at Vergennes, and not only accused Franklin of being blindly subservient to the French Court, but it made them resolve that no time should be lost in effecting a separate treaty. Vergennes contended for the rights of the Indian nations between the Alleghanies and the Mississippi, and of Spain on the lower Mississippi, and this the American Commissioners perceived to be an attempt to divide and weaken their territory. A private and earnest negotiation for peace with England was therefore entered upon as soon as a severe illness of Franklin permitted.

MAP OF THE UNITED STATES AT THE TIME WHEN THEY GAINED THEIR INDEPENDENCE.

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There was no difficulty in these negotiations as to the full and entire recognition of the independence of the States. The difficult points were but two—one regarding the fishery, and the other regarding the interests of the Royalists or Tories. The British Commissioners stood out strongly for the free permission of all who had been engaged in the war on the English side to return to their homes, and for the restitution of all property confiscated in consequence of such partisanship. The American Commissioners endeavoured to meet this demand by saying the recommendations of Congress would have all the effect that the English proposed. This the Commissioners regarded as so many words, and they insisted so determinedly on this head, that it appeared likely the negotiation would be broken off altogether. At last Franklin said they would consent to allow for all losses suffered by the Royalists, on condition that a debtor and a creditor account was opened, and recompense made for the damages done by the Royalists on the other side; commissioners to be appointed for the purpose of settling all those claims. The English envoys saw at once that this was a deception, that there would be no meeting, or no use in meeting, and they therefore abandoned the point; and the question of the fishing being in part conceded, the provisional articles were signed on the 30th of November, by the four American Commissioners on the one side, and by Mr. Oswald on the other. In the preamble it was stated that these articles were to be inserted in, and to constitute, a treaty of peace, but that the treaty was not to be concluded until the terms of peace had also been settled with France and Spain.

This proviso, however, by no means affected the treaty with America. This secret treaty was made binding and effectual so far as America and England were concerned. The first article acknowledged fully the independence of the United States. The second fixed their boundaries, much to the satisfaction of the Americans; and liberty was secured to them to fish on the banks of Newfoundland, in the Gulf of St. Lawrence, and wherever they had been accustomed to fish, but not to dry the fish on any of the king's settled dominions in America. By the fourth, fifth, and sixth articles it was engaged for Congress that it should earnestly recommend to the several Legislatures to provide for the restitution of all estates belonging to real British subjects who had not borne arms against the Americans. All other persons were to be allowed to go to any of the States and remain there for the settlement of their affairs. Congress also engaged to recommend the restitution of confiscated estates on the repayment of the sums for which they had been sold; and no impediments were to be put in the way of recovering real debts. All further confiscations and prosecutions were to cease. By the seventh and eighth articles the King of England engaged to withdraw his fleets and armies without causing any destruction of property, or carrying away any negro slaves. By these articles, the navigation of the Mississippi, from its source to the ocean, was to remain for ever free and open to both parties. If West Florida happened to be in the possession of Britain at the termination of a general peace, a secret article determined its boundaries.

Such were the conditions on which this great contest was finally terminated. The Americans clearly had matters almost entirely their own way, for the English were desirous that everything should now be done to conciliate their very positive and by no means modest kinsmen, the citizens of the United States. It was, in truth, desirable to remove as much as possible the rancour of the American mind, by concessions which England could well afford, so as not to throw them wholly into the arms of France. The conditions which the Americans, on their part, conceded to the unfortunate Royalists consisted entirely of recommendations from Congress to the individual States, and when it was recollected how little regard they had paid to any engagements into which they had entered during the war—with General Burgoyne, for example—the English negotiators felt, as they consented to these articles, that, so far, they would prove a mere dead letter. They could only console themselves with the thought that they would have protected the unhappy Royalists, whom Franklin and his colleagues bitterly and vindictively continued to designate as traitors. Franklin showed, on this occasion, that he had never forgotten the just chastisement which Wedderburn had inflicted on him before the Privy Council for his concern in the purloining of the private papers of Mr. Thomas Whateley, in 1774. On that occasion, he laid aside the velvet court suit, in which he appeared before the Council, and never put it on till now, when he appeared in it at the signing of the Treaty of Independence.