hward, in hopes of falling in with a detached squadron of French and
Spanish ships, of which he had received intelligence, and was cruizing
off Cape Finisterre, a rich convoy for the East and West Indies,
attended by the Ramillies and two frigates, were intercepted by the
combined fleets of the enemy, and nearly fifty merchant ships were
captured and carried into Cadiz. Many of these ships were laden with
naval and military stores for the different settlements to which they
were destined; and the loss of these, together with that of 3000 men
taken prisoners on board, so increased public dissatisfaction at the
mode of employing the Channel-fleet, that Geary soon afterwards resigned
the command. But this was not the only disaster which the English met
with on the seas during this year. About the same time, fourteen
ships of the outward-bound Quebec fleet were captured by some American
privateers off the banks of Newfoundland. These concurrent losses,
in their nearer or more remote consequences, affected all classes of
society.

WAR WITH HOLLAND.

It has been seen that Holland was one of those states which entered into
the league called "The Armed Neutrality." From the very commencement
of the American war, the Dutch had secretely favoured the cause of the
colonists; or at least had sought a commercial advantage in supplying
some of their wants at the expense of the commerce and interests of
England. Then again, after the interference of France and Spain in the
quarrel, the ports of Holland were open equally to all the enemies of
Great Britain; the advantages of a contraband trade making the Dutch
regardless of the faith of treaties, and of every other consideration.
Remonstrances were made on this subject by the British ambassador at the
Hague, but without effect. The States General were determined to follow
their own line of policy, and the breach thus made between the two
countries gradually widened as the war with America progressed. It was
easy to foresee, indeed, that sooner or later Holland would be joined
to the long list of our open enemies. An event which occurred early
in September of this year, led to such a consummation. At that time
a congress packet was taken by the Vestal frigate off the banks of
Newfoundland, as it was steering its course towards Holland. On board
this packet was Henry Laurens, the late president of congress; who, as
soon as he perceived that he should be captured, threw a box conta