English, in which general Matthews had the advantage. But this was only preparatory to the more important fcenes that were to fucceed. By a capital piece of generalfhip, Tippoo made himself master of two paffes in the ridge of hills that divide Bednore from the fea-coaft, and thus cut off the poffibility of our retreat. General Matthews fhut himfelf up in Hydernagur. His torce confifted of near 2,000 men. This place, however, which had been originally taken without refiftance, again furrendered on the 3d of May to the victorious Tippoo. The fuba is faid, however, to have tarnished his fplendid reputation by violating the terms of the furrender, and retaining the unfortunate army in durance, after having promifed to fuffer them to depart with the honours of war. In the mean time a wreck of our conqueft remained to us in the ports of Mangalore and Carwa, Tippoo immediately fat down before the first and strongest of these. We have already mentioned the ceffation of hoftilities with the Marattas, which took place in the clofe of the year 1781. It had been preceded by a feparate peace with Madagi Sindia, who from that moment feems to have become our cordial ally. In the beginning of the year 1782, he negociated with us a general peace in the name of the Maratta ftates. The preliminaries were fettled on the 17th of May. At the fame time an eventual treaty of partition of Hyder's dominions was agitated. Thefe negociations how ever were fufpended by an extraordinary and alarming delay of the ratification on the part of the peshwa. The ceremony at length took place on the 20th of December; and on the 24th of February 1783, the ratifications were ex. changed. The bafis of the treaty was a mutual reftitution. We withdrew our protection from Ragoba, and confented to replace Futty Sing in the fituation in which he had been before the commencement of the war. We even connived at the recapture of Gualior, which we had delivered to the raja of Gohud, by Madagi Sindia. Immediately after the conclufion of a peace, which might have been expected to be fecure, in propors tion to the flow and deliberate man ner in which it had been framed, an extraordinary event took place which had nearly thrown every thing into confufion. Colonel Macleod, in his way to Onere, was obliged to pafs by a confiderable extent of the Maratta territories. On the 8th day of May 1783, he was affailed by a number of armed veffels belonging to the Maratta government; and after a defperate defence of five hours, in which himfelf was dangerously wounded, and feveral valuable officers killed, he was carried in triumph into the port of Gheria. For fome time no fatisfaction could be obtained. At length on the 27th of May colonel Macleod and his companions were difmiffed, and returned to Bombay. By later accounts we are informed that the miniftry of the peshwa had made a more fatisfactory apology. About the time in which general Matthews conquered the kingdom of Canara, a revolution is faid to have taken place at Syringpatnam, the capital of Myfore, in favour of the forgotten raja. the forgotten raja. The detachment, that garrifoned the province of Tanjour, was ordered upon this occafion to penetrate into Myfore; and they fuccefsfully attacked fome of the towns nearest to Tanjour. In the midst of their progress they were were recalled to join the grand army at Madras, who had now a new enemy to encounter in M. de Buffi, governor of Mauritius, juft arrived with a reinforcement of 3,500 French troops. It was fortunate that this celebrated and hoary chief did not arrive till a few days after the occafion that had fo critically called Tippoo out of the Carnatic. General Coote, who had wintered at Bengal, determined once more to pass to Madras, though his conftitution was fo broken, that it was not expected he could live to complete the voyage. He arrived how ever on the 24th, and expired on the 26th of April. By his death the command devolved on major general Stuart. This officer, on the 7th of June fat down before uddalore. For fome time the fiege was carried on with great fpirit and perfeverance. But general Stuart had not only the garrifon from within to contend with, but from without the marquis de Buffi and admiral Suffrein. A flight engagement took place on the 20th, between this officer and fir Edward Hughes, which made no alteration in the state of affairs. The progrefs of the contest must have been ruinous; it could fcarcely be productive. Fortunately, to prevent the effufion of human blood, the news of peace arrived at Madras on the 25th, and a ceffation of hoftilities was completely fettled on the 4th of July, CHAP. America. Fate of the Loyalifts. Refignation of Washington. Its Finance and Politics. Ireland. Affairs of the Unfortunate Genevefe. Scotland. Controverfy of Lay Patronage, &c. TH HE conteft, which for fo long a time fixed our attention on the military tranfactions of our late colonists, being happily terminated; our curiofity is naturally turned to their civil affairs, the operations of their conftitution, the fpirit of their proceedings, and the degree of harmony or rivalfhip that fubfifts between neighbouring ftates. Such as have taken a part in our inteftine diffenfions are interested in the fubject, because it tends to decide whether it was fit in policy to yield their independency, or poffible yet to have torn from them this favourite jewel. The fpeculative politician must be defirous to be informed refpecting their fituation, because it is intimately connected with the question of the comparative excellence of a republican government, And to all it has the grace of novelty. Their conftitution is yet in a ftate of incorrectnefs and infancy; their rank among the nations is unfixed; and they are the first enlightened people, who have formed for themselves an independent government in the weftern hemisphere. The fubject of revenue is ever an important branch in the history of modern nations, and circumstances have occurred to make it particularly interesting in the cafe before us. The Americans have had in their outfet an extenfive and obftinate war to fupport, which neceffarily demanded the greatest expence. As a people, they were by no means opulent. And then all authority is founded in opinion. The most pernicious abufes are fub mitted to when introduced under the venerable fanction of precedent; but the most moderate exertions are unwillingly admitted in a new and unpractifed fovereignty. The general congrefs of the United States, convinced of thefe truths, were fenfible to the neceffity of discharging a confiderable part of their burdens indirectly by anticipations and the operations of finance. One of the first refources they employed was that of iffuing paper currency. But as they poffeffed no means of maintaining its credit, it funk by degrees into fuch a state of depreciation, as to occafion the greatest inconveniencies, and at length to become almost entirely useless. They then recurred to the more useful method of loans, which were negociated both at home and abroad, to a confiderable amount. But in fpite of all the resources they could invent, their difficulties increafed. To have fome idea of thefe it is only neceffary to recur in the most curfory manner to the state publifhed by congrefs of their receipts and difbursements for the year 1782. For the fervice of this year that affembly had stated the necef fary revenue at 1,800,000l. Of this fum only 94,500l. were raised by the refpective colonies, 187,500l. were borrowed in France and Holland, and there were 69,750l. in the public treafury at the commence. ment of the year: the whole amounting to 351,750l. This fcanty pittance fcarcely exceeded the mere expence requifite for feeding their army, and was nearly doubled by the the article of their pay, leaving for the prefent that of clothing totally out of the question. A fituation like this must be attended with the greatest inconveniencies. Their army was hardly fed, and could not expect to be clothed. So far from being able to difcharge any of the demands that were made upon them, they could not even pay the intereft of their debts: they ran in arrears with every body connected with the public fervice; and more than threefourths of their creditors were not thofe of choice but neceffity. In this fituation the faith of the government was violated; its credit deftroyed; and there was the most imminent danger of their being totally without an army. How their forces were kept together we fhall prefently have occafion to fee. It must be an extraordinary fpectacle to the inhabitants of this country, who labour under a debt of more than 250,000,000l. and who yet regularly pay the intereft of this debt, and maintain a credit fuperior to that of any other nation in the world, to contemplate a people vaft ly fuperior in extent of territory, and almoft half as numerous as themselves, with a debt of little more than 9,450,000l. new to exertion, unworn with refources, in a ftate only fhort of actual and declared bankruptcy. It is not to be doubted that, though not opulent, they are inherently capable of placing their finances in a regular and creditable state. The celebrated Dr. Franklin, who may be confidered as the founder of their liberties and the father of their constitution, in a letter upon the fubject that has been given to the public, has blamed them for the neglect of this in the strongest and most unqualified language. It is natural for us to enquire into the principles of their conduct. One of thefe, at which we have already hinted, is the novelty of their fituation. Age is an indifpenfible constituent in every thing venerable: the Americans feel the reality of their expences; they do not feel the weight and dignity of government. Recollecting that but the other day it originated in their own choice, their fenfe of equality is fomewhat too vivid for practice, and they are in a state approaching to that of nature. There is too an intrinsic feebleness in their fupreme legiflature. The general congrefs may fix the revenue to be raifed by cach province, but as they have no power to enforce the decifion, nor even to fix the funds upon which it fhall be raised, this prerogative is weak and inefficient. The individual states have conceived a jealoufy of their common reprefentative; and where private intereft coincides with corporate views, it is no wonder the prejudice should be ftrong and invincible. grefs recommended a certain propor tion of revenue to be raised by each ftate: the quota paid in was infinitely fhort of the fum ftipulated. A duty of five per cent. upon all goods imported was then proposed; a tax, the lighteft, the most equal and unexceptionable that can be conceived. After a delay of two years, one ftate entirely refufed its concurrence, another withdrew its affent once given, and a third returned no anfwer. Proceedings like thefe were totally destructive of all revenue. It was to be expected that the inhabitants of provinces whose legiflatures had voted any tax, when they faw their neighbours and fellow fubjects totally exempt from the burden, would employ every evafion to avoid paying it. The receivers feem to have connived at these evasions, and to have been extreme Con ly ly remifs in collection. To remedy this evil, congrefs proposed to be allowed to appoint its own officers of revenue. The idea was rejected with indignation. Such was the state of the American revenues in the last year of the war. Upon the restoration of peace it was natural to look back to their undigested and difordered state, and efpecially to make fome provifion for the intereft of the debt they had contracted, which, if not now done, muft hereafter feem completely hopeless and defperate. With thefe views, and in this important fituation, the general congrefs published their recommendation of the 18th of April 178, a paper replete with wifdom, moderation and found policy; and which, together with the address accompanying it, may perhaps be considered as the most refpectable record they have yet furnished to the world. They state the various motives of juftice, good faith, honour and gratitude, which call upon the American republic for an early and ef fectual provifion for the intereft of the debt: a debt owing partly to an ally, to whom they were upon every account under the greatest obligations; or to individuals in a foreign country, who had been the first to give fo precious a token of their confidence: and partly to the illuftrious and patriotic band of fellow citizens, who had defended their liberties with their blood; or to citizens, who by the tenor of their obligation were entitled to the principal of their loan. They estimate the intereft at 543,600l.; which they recommend to be levied by a duty of five per cent. upon all goods imported in the first place, and by Tuch other funds in addition as each ftate fhall provide in its refpective proportion. They point out the ne- As this important and final re- If the circumstances we have re lated |