The old playhouse lot in Argyle Street was granted, about this time, to James Putnam, from whom it came into possession of the trustees of the Acadian School. The grant from the Crown of part of the King's Stores for a fishmarket, before referred to, was, on 29th August, signed by the Governor and the Prince as commander in chief of the troops. This is what was called the new fishmarket. The old market had formerly been private property, and the rents of stalls at this time were received by Mr. Cochran, but it was subject to town regulations. Commissioners were about the same time appointed to purchase land and to erect buildings for the accommodation of the Legislature and Courts of Justice as soon as peace should occur and the price of labor should be lower. The Act formerly passed for erecting buildings for this purpose on the "lower parade" was repealed, and that of 1797 was amended in 1799 and the Commissioners were directed to purchase land in the south suburbs, and build a Government House.

The winter of 1797-8 was again very severe. The heavy falls of snow rendered the road from Halifax to Windsor impassable. The Prince ordered the troops to clear the road between the town and his residence on the Basin. The supply of fat cattle from the country for the troops was retarded for a long time by the state of the roads.

It was proposed to raise a fund in the town to be at the disposal of Government for the purposes of war. The inhabitants subscribed a sum approaching £4000 towards this fund; the officers of the Royal Nova Scotia Fencible Regiment, £200. The boys of the Grammar School contributed about £24, and the regiment in garrison and the officers in the public departments, including the contributions of the Nova Scotia Regiment, amounted to £2097. Much enthusiasm on the subject prevailed, and great loyalty was displayed by the people.

A general fast was proclaimed on 21st May, which was kept at Halifax with much solemnity.

A commission was issued in July to William Forsyth, Andrew Belcher, William Cochran, Lawrence Hartshorne, Charles Hill, Richard Kidston, John Bremner, William Sabatier and Michael Wallace, as directors for the Shubenacadie Canal. A survey and report was made by this committee which was printed and published.

There were several regular traders at this time between Halifax and Boston. The principal and most regular one was the Schooner Nancy, Captain Tufton.

In the month of January, 1798, a boat arrived in the harbor with Capt. Wyatt and several passengers of the Brig Princess Amelia, bound to Halifax, which had been wrecked on the south side of Sable Island on 9th November. The wreck had been reported by an American schooner, who saw signals of distress on the Island. Sir John Wentworth immediately sent a vessel to the Island with clothing and provisions for the relief of the sufferers. Capt. Wyatt equipped his long boat and, having got over to the north side of the Island, embarked with four of his crew and Lieut. Cochran of the Fusiliers, one of the passengers, intending to seek relief. He arrived safe in one of the harbors to the eastward of Halifax, where he obtained a pilot who brought him to Halifax. Capt. Parker, who had charge of the vessel sent to the Island, brought off the remainder of the crew and passengers in safety.

1798. On the 8th August, this year, Prince Edward received an injury by a fall from his horse while riding on one of the streets in the town. The horse broke through a defective wooden bridge over one of the street gutters. The horse rolled over him hurting one of his legs; it did not, however, prevent him from attending to his military duties. He was recommended by the physicians to go to England for further advice. An address subscribed by about four hundred of the inhabitants was presented to him on his departure, which took place on the 21st October, when he embarked in H. M. Ship Topaz, Captain Church. The House of Assembly had previously voted five hundred guineas to purchase a star of the order of the Garter to be presented to His Royal Highness.

Among the events of the year was the arrival in the harbor, in November, of the United States Squadron, consisting of the Sloop-of-War Herald, Capt. Stevens, and the Pickering, Capt. Chapman, with the Brig Commerce, Capt. Childs. Salutes were exchanged, and the captains landed and paid their respects to the Governor, Admiral and General, and were hospitably entertained. The United States was at this time at war with France.

On the 25th November news of Nelson's victory at the Nile arrived in Halifax. The town was illuminated in the evening. Salutes were fired and other demonstrations of joy occurred throughout the day. A number of prizes were brought into the port during this autumn.