p them.
Frederick of Prussia, always eager to do England a bad turn, used his
influence with the Empress Catherine in the cause of the freedom of
commerce in neutral ships, and was supported by her minister, Panin.
Catherine, though not unfriendly towards England, yielded to his
representations, and in March, 1780, notified England, France, and Spain
that, while in other respects she would maintain strict neutrality, she
would enforce by her fleets four propositions: (1) that neutral ships
may freely sail from port to port of a belligerent nation; (2) that
goods carried by them, not being contraband, should be free from
seizure; (3) that only certain specified goods were contraband; and (4)
that no blockade should be recognised which was not effectual. France,
Spain, and the Americans at once accepted these propositions; Denmark,
Sweden, Prussia, and the Emperor joined the league of "armed neutrality"
in the course of the year, and the accession of Holland was only
prevented by its becoming a belligerent. England did not accept these
new rules, which were detrimental to her as a naval power. The alliance
isolated her, threatened to increase the number of her enemies, and
forced her to be cautious in her dealings with neutral ships. War with
the Baltic powers would have ruined her, for since the American revolt
she was dependent on these countries for timber and other naval stores.
Happily, Catherine was by no means inclined to quarrel with her.

[Sidenote: _THE QUARREL WITH HOLLAND._]

The Dutch complained that England violated a treaty made with them in
1674, which provided that either power should hold all goods conveyed in
the ships of the other, not being contraband, as free from liability of
seizure, and that either should be free to trade with the enemies of the
other. Many Dutch ships were searched and their cargoes seized by
English ships, in some cases lawfully, because they were carrying
contraband of war, in others merely because they were carrying French
goods or were trading with our enemies. England contended that the
treaty of 1674 was superseded by the treaties of 1678 and 1716, which
provided that, when either power was attacked, the other should come to
its aid; and that, though the aid of the Dutch was not demanded, they
were at least bound to abstain from helping her enemies. The Dutch,
however, supplied the Americans with vast quantities of naval and
military stores, supplied naval stores also to F