France was making peace with its enemies, one by one, and it could easily be foreseen that, very shortly, England would have to bear all the brunt of the war; therefore, on the 1st June, a note from Lord Grenville was presented to M. de la Croix, the French Minister for Foreign Affairs, in which was expressed the wish of the English Government to negotiate preliminaries of peace. Of course there was some diplomatic fence; but, finally, it was settled that Lord Malmesbury should again go as Plenipotentiary. He arrived at Lisle on 6th July, but the demands of the French were outrageous, and, after, in vain, combating their absurd requirements, he demanded his passports, and left Lisle on 18th September.

On 11th October, Admiral Duncan attacked the Dutch fleet off Camperdown, and, after a terrible action, defeated it, capturing eleven vessels, and sinking one.

About the last event of national interest, occurring in this year, is the formation of the French "Army of England," which was destined for our invasion, and which was to be under the command of General Buonaparte, which is about the first time our great enemy came into active collision with us.

At the commencement of 1798, the financial pressure on the nation, caused by the war, was very great. A triple assessed tax, a loan of £15,000,000, additional duties on salt, tea, dogs, horses and carriages, and a tax on armorial bearings, came home to every one. Yet, English patriotism was sound to the core, and the people helped the Government nobly, by means of voluntary contributions. A few examples will show how every class vied with each other in subscribing. They are taken from the Times.

February 7th.—"Yesterday the Marquis of Buckingham subscribed at the Bank, the profits of one year's income from his Tellership of the Exchequer. On Monday the Duke of Marlborough subscribed £5000 at the Bank. The city of Oxford has subscribed £500 as a voluntary donation, to be continued for three years, if the war lasts so long."

February 8th.—"The subscriptions yesterday at the Bank amounted to upwards of £30,000. Among the subscribers were—the Earl of Carlisle £4000, and the Bishop of Litchfield and Coventry £1000. But the largest individual subscriptions are expected from Manchester, from whence letters were yesterday received, stating that three mercantile houses in that opulent town had subscribed Thirty-five Thousand Pounds, and that Mr. Peele's house gave £20,000."

On the 9th February a meeting, on this subject, was held at the Royal Exchange, the Lord Mayor, Aldermen, and most prominent citizens being present—and the result is thus stated in the Times, 10th February:—"As soon as the meeting was dissolved, four separate books were opened on the Hustings; and at the close of the day, the exact sum subscribed in cash, was Forty-six Thousand, Five Hundred, and Thirty-four Pounds, Three Shillings and sixpence, which, if calculated for the time the books were opened, is at the rate of £400 a minute. The number of subscribers was 218, and the subscriptions from one guinea to £3000, which last sum was the donation of Boyd, Benfield, & Co., with the promise of continuing it annually during the war."

14th February.—"The City of London yesterday subscribed £10,000 towards the contributions to the Bank. Yesterday the sum of £18,900 was subscribed by the merchants on the Royal Exchange."

It would be wearisome to detail all the subscriptions, but yet two or three more may be recorded. The Bank of England gave £200,000, and the King and Queen £20,000, and £5000 respectively, out of their private purses; and on 20th September the amount of the voluntary contributions then subscribed, was £1,514,993, 12s. 9d.

Ireland, this year, was more than disaffected: it was in open rebellion, and, on 30th March, a proclamation was issued by the Lord-Lieutenant, for suppressing such rebellion. That it was a most serious one, is evidenced by a paper in Lord Edward Fitzgerald's handwriting, that, at a meeting held 26th February 1798, a return was made that there were in Ulster, Leinster, and Munster, 269,896 armed men, and that their treasurer had £1485, 4s. 9d. in hand. That this was not altogether an exaggeration, is shewn by the fact that, in the year 1797, there were seized by the Government, in the provinces of Leinster, and Ulster, alone, 49,109 guns, 1756 bayonets, 4463 pistols, 4183 swords, 248 blunder-busses, 119 musket-barrels, 106 sword-blades, 22 pieces of ordnance, and 70,630 pikes, besides other weapons voluntarily surrendered. In the same year, 14,973 pikes were surrendered in the county of Kildare alone, and in Dublin, on 11th May 1798, 5 pieces of cannon, and 500 pike handles, were seized.