between different countries which it was the interest of them ali to preserve; and that the nation having commodities to dispose of, which the other nations wanted, would receive abundant assistance from those nations themselves to accomplish the transmission. Accordingly in the second year of the war the imports rose up to fully their amount before the war; and the exports rose to £16,725,402 16s. 2d. This rise too was before the period at which our naval victories gave us so great an ascendency at sea, as to enable us to sweep from it the ships of every hostile nation; and was entirely owing to causes independent of that ascendency. Toward the end of the war that advantage encouraged our foreign trade to a degree which raised it beyond all former example, and probably impoverished other and more important branches.

when the war commenced anew. It was the easiest thing in the world for that trade to return, therefore, into these channels. By seizing on Hanover, indeed, the French have interrupted one channel much used in the preceding war, Hamburgh. But it is not a difficult matter to find substitutes for Hamburgh, a little, but not a great deal more inconvenient. There are numerous places on the southern shores of the || Baltic which may be employed as emporiums for transmitting goods into Germany; and it is impossible to doubt that the commodities which the Germans want, and are willing to pay for, will find their way thither. We observe that they are finding their way thither ac cordingly; and very large shipments indeed, have been made within these few weeks to Lubeck, Stetin, and Tonningen. Difficulties attend the use of such new places at the beginning; they want commodious warehouses for preserving the goods; the means of

are not found in sufficient quantity. But these accommodations begin instantly to be provided, and continue to be multiplied till they are fully supplied. Hamburgh itself was but very imperfectly provided with them, at the commencement of the last war; and they will be the sooner obtained by the towns which may be now substituted for Hamburgh, since a consi derable proportion of the accommodations of trade may be transported from the one to the other.

It is impossible to doubt that the obstructions thrown in the way of our intercourse with a great part of Europe by the efforts of the French, has dur-carriage, such as boats, carriages, men, and horses ing the last five months prevented a great deal of exportation to it from this country which would otherwise have taken place. So far then, it is to be allowed, real inconvenience has been sustained. But this we But this we deny has been at all equal in amount to what was sustained during the first months of the last war. We may reason even from the nature of the complaints which we have heard. These have been scarcely more loud since the commencement of the war, than they were during the last year, in which it is proved that commerce flourished so much. Had difficulties, however, to any considerable degree arisen, we should have heard the proclamations of distress a little multiplied. The number of bankruptcies in London has been perfectly trifling, scarcely greater than what has frequently taken place in the most tranquil state of mercantile intercourse; and even in those places, the distresses of which have been most held out, a very small proportion indeed of those in business, have been obliged to stop their payments or transactions. Even those the least accustomed to attend minutely to the course of mercantile operations can remember how different was the case toward the beginning of the last war, when bankruptcies were so frequent, as to portend a total dissolution of mercantile, and even of national credit. We can all remember that the case became so alarming as to induce the government to interfere, and by lending exchequer bills to those who could pledge goods, or give other security for the repayment, enable them to maintain their credit, till they found a market for the commodities of which they had to dispose. Large grants of money were at the same time made to the West India merchants. None of these extraordinary aids have been given or required in the present war; we see that they are not necessary. And we are entitled from this to conclude, that the commerce of Great Britain has suffered much less by the transition from peace to war this time, than last.

Since the aspect of trade then was much more gloomy in this country at the beginning of last war, than at the beginning of this; and since, notwithstanding, trade rose to such unexampled prosperity, before the termination of that war, what reason should there be to fear that it is fated to decline during this war. Is our fleet less powerful to ensure us the dominion of the sea? Is our capital diminished by which we are become less able to trade? Or are our manufacturers or artificers become less skilful workmen ? The fear arises from an opinion of the extended power of France. But what additional control over our trade has that extension given to France? The whole coast of France and Holland, of Spain and Italy, was as completely shut against us, when our foreign trade was in its greatest prosperity, as hostile measure could make it. By getting command of the course of the Elbe, and the Weser, France obliges us to look out for another road into Germany. If we suppose the persons who purchased our goods in Germany, to have purchased as much as they were able to pay for, the quantity which they will now be able to purchase, will be diminished by all the addition made to the expence of carriage in this more circuitous rout. This, however, must bear to the great total of British traffic, a proportion totally unworthy of regard. Besides, the taste for British goods, both in Germany and in France, is so great, that the inhabitants will retrench in a multitude of domestic articles rather than suffer any abatement in the use of the former. West India

There are satisfactory reasons to shew why this ought to be the case. During the last war, this coun-produce, sugar, coffee, and cotton, have become in try had found out channels, altogether free from the controul of France, sufficient to contain a greater foreign trade than she had ever possessed before. These channels had not well had time to be shut

some sense, necessaries of life, in almost every part of Europe. But these it can be supplied with now only from Britain, and it will only pay the dearer for them, by making it more difficult to send them. The 2 A

that taxes may increase so fast as to outrun the pro ductive powers of any country. The productive powers of Holland, were at one time very great. But they came to be cramped, and almost completely destroyed by excess of taxes. It is therefore a most sacred duty in those who have the management of the affairs of the state to practise economy. The

sell for it our houses, and the clothes from off our backs. But we see no reason to suppose that the present war will be either so long, or so expensive as the former; or that the productive powers of this country will be impaired by the burthens which it may impose.

more distant, and less commodious market, but by diminishing the productive labour of the country. The whole of the militia, the army of reserve, and the recruits obtained for the regular service, are removed from the productive occupations of the state. Part of the time of the immense body of volunteers is in like manner destroyed. It is impossible to make any estimate of the whole loss sustained by this inter-safety of the state must be provided for, should we mission of industry, but it cannot fail to be very considerable. It is to be observed however, that this intermission is, in a great measure only temporary. If the discipline of the volunteers were complete, less attendance on military duty would be required. And the places of those who are removed will be quickly supplied by the young. It is a universal maxim, that a country peoples up to its resources; and where encouragement is given to labour, hands are quickly produced. The young are tempted more early to try their powers; the old are induced to augment their industry; and necessity urges the manufacturer and trader to devise new modes of facilitating, and abridging labour, by the invention of new machines, and by a better division and distribution of labour. Very little apprehension therefore is to be entertained of any great decline of British commerce, on account of the diminution of productive labour by occupying the la- || bourers in military exercises.

We have abstained from considering in this question the effects of invasion, should it really take place; because these effects can be only temporary, not permanent; and because we think it not at al! probable that they will be very great. Supposing the worst, that a few counties may be ravaged, this will make very little alteration in the state of the general wealth of the country. The suspense and agitation occasioned by so unusual an event, would interrupt to a certain degree the ordinary pursuits of the people. But the overthrow, which may be depended upon, and the consequent diminution of the credit of France, would enable us to obtain advantages which would amply recompense such temporary loss.

One circumstance more is not unworthy of being attentively considered. The encouragement given to foreign trade in the last war was so great as not to be in all respects good for the country. By the monopoly which we acquired of the trade of the sea, its profits were raised so high as to withdraw a great deal of ca

The operation of the taxes which will be necessary to cover the expence of the war, is the only other circumstance which can be supposed to have any effect in depressing the commerce of the country. We will confess that the operation of the taxes in this country has been so extraordinary, that we hardly dare affirm, or deny any thing very confidently with regard to it. If any one at the beginning of the last war, had pre-pital to the supply of foreign markets, which would dicted that the burthens of the nation would be dou- have been employed in the home trade. But the home bled by it, there are few persons who would not have trade is proved to be of much more consequence to declared, that the state could not bear it; that com- the improvement of any country than foreign trade. merce must be ruined; the people impoverished; and || A great deal of British capital was employed during the prosperity of Britain brought to an end. Yet the the last war, neither in the home, nor foreign trade fact taught us very different lessons; notwithstanding of the country, but in carrying the trade of one fothese enormous burthens, the commerce of the country reign country to another. This is the least proencreased; the circumstances of the people improved;fitable of all modes of employing capital. It will and the prosperity of Britain was at its greatest height || when the war was concluded. The truth is, we are too little acquainted with the productive powers of a nation in the situation of Great Britain, to be able to say, beforehand, what effects under proper encouragement they may produce. The productive powers of Great Britain, improved so fast during the last war, as to furnish the enormous amount of means necessary for carrying it on, not only without entrenching upon the previous riches of the country, but affording over and above this expence, a large surplus to encrease those riches. We cannot, with all the light which we possess, see any reason to conclude that these effects will not be produced in the present war, should it be even as expensive as the former. All the circumstances which encouraged our trade in the last war, exist in this, and seem very unlikely to be altered. Our capital, our skill, our credit is unimpaired. Our markets cannot be greatly reduced; will most probably be enlarged. It can hardly, however, be doubted

not, therefore, by any means be a circumstance to be deplored, if the foreign trade do receive a considerable check during this war. A greater part of the riches of the state will be employed in improvements at home. There are many branches of domestic industry in which great improvements remain to be made. We shall offer some observations on this subject in our next number.

Portugal.

A number of extravagant particulars have been reported with regard to the transactions between France, and this degraded country, and not a few with regard to the transactions between France and Spain.

The power of France over Spain, in the last war, was understood to be complete; nor is there any reason to suppose that it is diminished, as it is pretty certain that the strength of Spain has not increased, and the apparent strength of France has not declined. Whatever France shall think it her interest to demand

Do the persons who make these reports know The defenceless state of Portugal, at the same time, how much the annual revenue of Portugal is? Do as well as the pusillanimous spirit of the inhabitants they know too this fact, that no government in Euis well known. The natural defences of the country rope finds greater difficulty in raising the revenue, or are strong, as it is surrounded with mountains, the is more totally incapable of augmenting it? They passes of which might easily be defended. But such might have known that the whole income of the state for a long time has been the corruption of govern- || is scarcely two millions sterling; and that the pcople ment, that the means which had been formerly pro- are oppressed by raising this. How absurd then is it vided, of guarding these passes, have been allowed to to suppose, that a tribute, nearly doubling the amount sink into complete decay; and our officers who were of this is possible to be afforded! The produce of sent last war to examine the practicability of defending the permanent taxes of Great Britain for the last year the country against the French, found the batteries was nearly £30,000,000, with which the people are universally in ruins, and the guns on carriages so not at all oppressed. But how absurd would it be to rotten and decayed, that they durst not promise they say that the government could raise £20,000,000 in would stand two shots. Their officers even were addition to this to be paid to a foreign government! o ignorant of the higher branches of the military

bute of four millions sterling is to be paid annually by Spain. The revenue of Spain is computed at five millions and a half; it is equally plain therefore how far this report can be true.

It should not, we should think, be out of the recollection of persons who attend to politics, that to pay the exaction made by France on Portugal in the last war, that country was obliged to sell the diamonds belonging to the crown.

the pier and parts of the town, he is persuaded they must have done very considerable damage. Dieppe has been bombarded by Captain Owen, of the Immortalitè, who likewise declares his opinion of the great loss sustained by the enemy. And a similar attempt was made by a small squadron on Calais.

Preparations are making for the accommodation of numerous divisions of the British troops, which are to be stationed on the southern and eastern coasts, during the winter. It is said that huts are to be erected in the New Forest, Hampshire, and in other parts of the coast. Among other military inventions proposed to the Board of Ordnance, is one for undermining any part of a road: by which, if it should be necessary to abandon the road to an enemy, an immense chasm may be formed, which it will be impossible for artillery to pass. It has been fully approved of by the Board, and all the implements, and instructions necessary for forming such mines will be speedily forwarded to different parts of the coast.

Political History, Foreign and Domestic. Some time ago, Marquis Wellesley repaired to the Nabob of Oude, for the purpose of making some political arrangements. To the propositions offered, his highness readily assented. An agreement was made, that a strong detachment should be sent under his son to assist the coalition in favour of the Peishwa, against Juswunt Rao Holkar. By letters received over-land from Bombay, dated the 5th of April, it is stated that this chief, hearing of the coalition, had retired with the utmost precipitation to Chandore, a Accounts have been published for some days past, strong post, at a considerable distance to the northward, announcing a more advanced state of the preparations which belonged to his ancestors, and to which it for invasion in France, than had been given for some would not be prudent to follow him. The report of time before. We are still of opinion that these prethe English army being destined against him, discon-parations are far from perfect, and that the accounts certed him it is said, and impaired his former vigilance. || received are much exaggerated. The knowledge An actual warfare has broken out in Ceylon, between however which Bonaparte possesses, that he must our people and the Candians. To the former it is little make his attack upon England, before her plans of more than skirmishing. It must end in the subjuga-defence are matured, or not at all, may lead him to tion of the latter.

On the 19th of February in this year, Major-Gen. || Macdowall commenced his operations by sending a detachment under Lieutenant-Colonel Logan, to attack the two strong posts of Galle-Gederah and Giriagamme. At the first, where the enemy abandoned three curious brass cannon, no resistance was made; at the latter a fire was kept up which wounded two men of the 19th regiment. The capture of these posts opened the road to Candy. The northern detachment of the army under Lieutenant-Colonel Barbut also proceeded towards the Capital, and approaching the great Candian River, found the opposite bank and neighbourhood occupied by the enemy in force, who were dispersed by a few minutes fire from two mortars and one six pounder. On the 21st, the detachments joined and entered Candy. The King and his principal officers had fled with their treasure after setting fire to the Palace, which was extinguished after much damage. The inhabitants also deserted their houses. Thus ended this expedition, in which, had the Candians known how to make use of their natural advantages, we must have sustained consider

able loss.

The little islands of St. Pierre, and Miquelon in the West Indies, have surrendered to the British force. And accounts have been received, which appear to deserve credit, that the same has been the case with the valuable Dutch settlements of Demerara and Essequibo.

precipitate his measures. And so much the worse for him. The last accounts from Ostend, say that 100 boats were in that port, but only 8 of them fit for service; that the materials for ship-building were very abundant, but artificers wanting. Lately about 20 sail of Blackenburg fishing boats, got into Ostend. Each is to be mounted with a 24 pounder, and to carry 100 men; but they will require three months to be prepared for service.

It appears that matters are not yet adjusted between France and Portugal, nor even between France and Spain. It is probable, however, that both these countries will soon be brought to the terms of France. General Augereau, instead of assuming the command destined for him in the army of England, is said to have actually set out from Paris for the Spanish frontier. Of the points in dispute, nothing but vague conjectures can be given.

It is affirmed that the French have abandoned their intention of erecting fortifications on the Elbe, and the Weser; and that the greater part of the French troops are to be removed from the Hanoverian territory, as soon as their arrears of pay shall be supplied. Hanover will then be garrisoned by 5000 Prussian troops, upon condition that the payment of two millions of livres, shall be secured to the French government during the war. This is with a view to procure the removal of the blockade of the Elbe, and the Weser, the inconvenience arising from which has become prodigious in all the countries which were formerly supplied by these rivers.

An active system of bombardment has been begun by our ships on the coast of France. Granville has Accounts were received some time ago of the arribeen bombarded with the Cerberus and Terror, byval at the Cape of Good Hope, of the force under AdSir James Saumarez, who says, that from the number miral Linois, which was supposed to be destined for of well directed shells thrown from the Terror into Pondicherry, and it was then understood that this force.