speech
expressed the regent's approbation of the wisdom and firmness which the
two houses had manifested, in enabling him to continue the exertions
of the country in the case of our allies, and to prosecute the war with
increased activity and vigour. At this time there was an end of all
hopes of his majesty's ability to resume the functions of royalty. In
the early part of the year his health underwent some variations, with
lucid intervals; but the report of the queen's council on the 8th of
July stated that his majesty was totally unable to resume his kingly
duties.

DISPUTES WITH AMERICA.

The orders in council not being repealed on the 2nd of February, Mr.
Pinkney, the American minister in London, was recalled. He had his
audience of leave on the 1st of March, from which time the American
ports were closed against English ships, and open to those of our enemy.
Attempts were made, in the course of the summer, to effect an adjustment
of the subjects in dispute; but these failed, and on the meeting of
congress in November, the president recommended vigorous measures
of preparation both by sea and land. The finances of the American
government, however, were little suited to meet the expense of a war;
and the friends of peace, though outvoted in the legislative assemblies,
yet felt confident that the prospect of loans and taxes would cool the
military ardour of a people unaccustomed to such burthens.

CAPTURE OF JAVA.

A formidable expedition was this year fitted out by Lord Minto,
Governor-General of India, and placed under the command of Sir Samuel
Auchmuty, against the Dutch settlements in the island of Java. A landing
was effected without opposition on the 5th of August, and by the 8th the
city of Batavia was captured without resistance. Its garrison retreated
to a fortified position within two miles of Cornells, where General
Jansens was stationed with the principal Dutch force. These works were
now assailed, and they were carried by assault on the 26th; and the
whole of the Dutch army was either killed, captured, or dispersed.
Jansens fled to Samarang, and prepared for defence; but he was soon
compelled to capitulate, and then the whole island of Java surrendered
to the British arms.

AFFAIRS OF PORTUGAL.

During the months of January and February the English and French armies
in Portugal remained in their respective positions. The French marshal,
Mas-sena, was re-enforced by the ninth corp