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beginning to fail, the autumnal rains to descend in torrents, and the peasantry to block up the roads, the Count d'Aranda dismantled the few fortresses he had taken, and returned to Spain. To all these losses and defeats was added the capture of the Spanish ship, Hermione, off Cape St. Vincent, by the English, having treasure on board that amounted to nearly L1,000,000 sterling. The only expedition of the English which failed during this year was that against Buenos Ayres, which was as ill conceived as it was paltry. But this gave Spain no hope for the future. Taught experience by reverses, the war with England became, indeed, unpopular with the Spanish people, and their universal cry was, at the close of this campaign, "Peace with England, and war with all the world!" DISSENSIONS IN THE CABINET. Early in January of this year died the Czarina Elizabeth, one of the most bitter and inveterate enemies of our ally, the King of Prussia. She was succeeded in her empire by Peter III., who, by the month of March, had concluded a close alliance with Frederick, placing an army of 20,000 men, which had hitherto fought against him, entirely at his disposal to fight against Austria. This had no sooner become known to the English cabinet, than Bute and his party proposed that no further subsidies should be paid to Frederick; at the same time, they reminded his Prussian majesty, that he had himself declared that if he were once secured by the neutrality of Russia, he should have little need of further assistance from England. But the old Duke of Newcastle would not admit the validity of this reasoning of his colleagues. He waited on Bute, and declared his intention to resign, unless a subsidy of L2,000,000 was paid, and the continental war continued. Bute answered drily, "that if the money were granted, peace might be retarded;" but he never requested him to continue in office, nor said a civil word to the aged politician. Accordingly, the Duke repaired from the minister to his master, and resigned his office, refusing a pension which was offered as a reward for his services, and for the large sacrifices which he had made since he had been minister, out of his private fortunes. "If he could no longer be permitted to serve his country," he said, "he was at least determined not to be a burden on it: that if his private fortune had suffered by his loyalty, it was his pleasure, his glory, and his pride; and that he desired no r
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