At this period, Portugal had not an army exceeding 20,000 men, and her fleet was reduced to six ships of the line and a few frigates, while her fortresses were in ruins. In such a desperate condition, therefore, it might have been expected that, however repugnant to his inclinations, the heir of the house of Braganza would have broken his alliance with England, and have joined the Family Compact. Prudence would seem to have dictated such a step, but he acted otherwise. He had spirit enough to declare that he would never submit to such conditions; and the French and Spanish ambassadors quitted Lisbon, while their armies on the frontiers put themselves in motion towards his capital. Ruin seemed to await the monarch of Portugal. Braganza, Miranda, and Torre de Moncorvo were captured by the Marquis of Saria, who commanded the Spanish army north of the Douro, while another body of Spanish troops penetrated south of the Douro into Beira, and occupied a post near Almeida. But the Spaniards were doomed to receive a check. The militia and the brave peasantry of Portugal, assisted and directed by some British officers, maintained a destructive war of posts on the forces of Saria, and thus stemmed his onward progress till relief came from England.

On the 11th of May, George III. ordered the following message to be laid before the house of commons:—“His majesty, relying on the known zeal and affection of his faithful commons, and considering that in this conjuncture emergencies may arise, which may be of the utmost importance, and be attended with the most pernicious consequences, if proper means should not be immediately applied to prevent or defeat them; and his majesty also taking into his most serious consideration the imminent danger with which the kingdom of Portugal, an ancient and natural ally of his crown, is threatened by the powers now in open war with his majesty, and of what importance the preservation of that kingdom is to the commercial interests of this country, is desirous that the house would enable him to defray any extraordinary expenses of the war incurred, or to be incurred for the service of the year 1762; and to take all such measures as may be necessary to disappoint or defeat any enterprises or designs of his enemies against his majesty or his allies.”

This message was favourably received; Pitt advocated the cause of our ancient ally with fervour and eloquence, and the house of commons voted £1,000,000 sterling for the purposes therein specified. And this vote was followed by prompt and effective measures to arrest the arms of France and Spain. Eight thousand British troops under the command of Lord Tyrawley, the Earl of Loudon, General Townshend, Lord George Lennox, and Brigadiers Crawford and Burgoyne, landed in Portugal, and immediately commenced operations. At the same time the native Portuguese army consented to submit to the command of the Count de la Lippe, an active and experienced German officer, who had commanded the British artillery in Germany. The events of this campaign were complicated and various. Lippe concentrated the principal part of the Portuguese forces at Puente de Marcello, to prevent the progress of the Spanish arms northward, while Brigadier Burgoyne was detached to fall upon Valencia d’Alcantara, on the frontiers of Spain, southward. Burgoyne carried Valencia d’Alcantara by a coup-de-main, capturing a Spanish general with all his staff, and all the magazines which Spain had there collected for the purpose of an invasion along the Tagus, and then retraced his steps to Pnente de Marcello. At the same time Almeida was taken by the Spanish general, Count d’Aranda, and having garrisoned this place, and Ciudad Rodrigo, he marched towards the Tagus, designing to pass into the Alemtejo. When, however, he arrived at Villa Velha, on the Tagus, he found that the passage of the river would be disputed. Lippe, aware of his designs, had marched to Abrantes, the key of Portugal on the Tagus, and had posted detachments under Burgoyne and the Count de St. Jago at the adjacent passes of Alvite and at Niza. The Spanish general obtained possession of the castle of Villa Velha, and drove the Count de St. Jago from the pass of Alvite; but while some of the Spaniards were pursuing the routed Portuguese forces, Burgoyne threw a detachment across the Tagus upon Villa Velha, and while the Count d’Abrantes was amused in front by a feigned attack from Niza, this detachment, commanded by Colonel Lee, entered their quarters in the rear, and began a terrible fire of musquetry. It was under cover of the night that Lee entered the quarters of the Spanish commander, and thus surprised, the Spaniards were routed with terrible slaughter, while their magazines were destroyed and their guns spiked. This was a blow from which the Spaniards could not recover; and the French invading forces having failed in their co-operation, his provisions beginning to fail, the autumnal rains to descend in torrents, and the peasantry to block up the roads, the Count d’Aranda dismantled the few fortresses he had taken, and returned to Spain. To all these losses and defeats was added the capture of the Spanish ship, Hermione, off Cape St. Vincent, by the English, having treasure on board that amounted to nearly £1,000,000 sterling. The only expedition of the English which failed during this year was that against Buenos Ayres, which was as ill conceived as it was paltry. But this gave Spain no hope for the future. Taught experience by reverses, the war with England became, indeed, unpopular with the Spanish people, and their universal cry was, at the close of this campaign, “Peace with England, and war with all the world!”

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DISSENSIONS IN THE CABINET.

Early in January of this year died the Czarina Elizabeth, one of the most bitter and inveterate enemies of our ally, the King of Prussia. She was succeeded in her empire by Peter III., who, by the month of March, had concluded a close alliance with Frederick, placing an army of 20,000 men, which had hitherto fought against him, entirely at his disposal to fight against Austria. This had no sooner become known to the English cabinet, than Bute and his party proposed that no further subsidies should be paid to Frederick; at the same time, they reminded his Prussian majesty, that he had himself declared that if he were once secured by the neutrality of Russia, he should have little need of further assistance from England. But the old Duke of Newcastle would not admit the validity of this reasoning of his colleagues. He waited on Bute, and declared his intention to resign, unless a subsidy of £2,000,000 was paid, and the continental war continued. Bute answered drily, “that if the money were granted, peace might be retarded;” but he never requested him to continue in office, nor said a civil word to the aged politician. Accordingly, the Duke repaired from the minister to his master, and resigned his office, refusing a pension which was offered as a reward for his services, and for the large sacrifices which he had made since he had been minister, out of his private fortunes. “If he could no longer be permitted to serve his country,” he said, “he was at least determined not to be a burden on it: that if his private fortune had suffered by his loyalty, it was his pleasure, his glory, and his pride; and that he desired no reward but his majesty’s approbation.” Horace Walpole says, that he retired from the royal presence comparatively a poor man, to find how solitary and deserted could be the mansion of an ex-minister. Newcastle had been more than forty-five years in the cabinet, and this utter disregard to money-making exhibits his patriotism in a strong light: few would have served their country so long without well replenishing their coffers, especially at that age, when the virtues of disinterestedness and self-abnegation were exotic rather than indigenous to the human heart.

Bute had his reasons for answering the Duke of Newcastle coldly, and the result answered his expectations. He succeeded the ex-minister at the head of the treasury, “taking the reins of government with almost as little experience as Phaeton, and meeting with a fall almost as soon.” Mr. George Grenville was appointed secretary of state; but he afterwards exchanged posts with Lord Halifax, who had recently been appointed head of the admiralty. Lord Barrington was removed from the Exchequer in which office he was succeeded by Sir Francis Dashwood, and he was appointed treasurer of the navy. Soon after the Duke of Devonshire resigned his post of lord high chamberlain, and the Earl of Hardwicke retired from public life altogether. Many of the friends of the duke retained their places or accepted others; but several noblemen and commoners of distinction before the end of the year ranged themselves in the ranks of opposition. Amongst these was the Duke of Newcastle, who, although during the summer he had abstained from opposing the government, at length formed a political connexion with the Duke of Cumberland, whom he had before invariably opposed.

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EVENTS IN GERMANY, ETC.

Frederick of Prussia had not only entered into an alliance with Russia, but towards the end of May he had concluded a peace with Sweden. Backed by these two powers he boasted that he was in possession of more advantages than he could have derived from gaining three pitched battles, and without waiting for the English subsidy he took the field. He began operations in Silesia, and directed his attention to the recovery of Schweidnitz. He was aided in his designs by his brother, Prince Henry, who had gained an important battle near Freyburg, and thus changed the aspect of affairs in Saxony; but while he was intent on his plans, he was threatened with a sudden reverse of fortune. This was the death of his new ally, the Czar Peter.