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Negotiations continued, though hostilities did not cease; and in June, 1712, a four months' truce between Great Britain and France removed the English troops from the allied armies on the continent, their great leader Marlborough having been taken from their head the year before. The campaign of 1712 was favorable to France; but in almost any event the withdrawal of Great Britain made the end of the war a question of but a short time. The remonstrances of Holland were met by the reply that since 1707 the Dutch had not furnished more than one third their quota of ships, and taking the war through, not over one half. The House of Commons in an address to the throne in 1712 complained that—

"The service at sea hath been carried on through the whole course of the war in a manner highly disadvantageous to your Majesty's kingdom, for the necessity requiring that great fleets should be fitted out every year for maintaining a superiority in the Mediterranean and for opposing any force which the enemy might prepare either at Dunkirk or in the ports of west France; your Majesty's readiness, in fitting out your proportion of ships for all parts of that service, hath not prevailed with Holland, which has been greatly deficient every year in proportion to what your Majesty hath furnished.... Hence your Majesty hath been obliged to supply those deficiencies with additional reinforcements of your own ships, and your Majesty's ships have been forced in greater numbers to continue in remote seas, and at unseasonable times of the year, to the great damage of the navy. This also hath straitened the convoys for trade; the coasts have been exposed for want of cruisers; and you have been disabled from annoying the enemy in their most beneficial commerce with the West Indies, whence they received those vast supplies of treasure, without which they could not have supported the expenses of the war."

In fact, between 1701 and 1716 the commerce of Spanish America had brought into France forty million dollars in specie. To these complaints the Dutch envoy to England could only reply that Holland was not in a condition to fulfil her compacts. The reverses of 1712, added to Great Britain's fixed purpose to have peace, decided the Dutch to the same; and the English still kept, amid their dissatisfaction with their allies, so much of their old feeling against France as to support all the reasonable claims of Holland. April 11, 1713, an almost general peace, known as the Peace of Utrecht, one of the landmarks of history, was signed between France on the one hand, and England, Holland, Prussia, Portugal, and Savoy on the other. The emperor still held out, but the loss of British subsidies fettered the movements of his armies, and with the withdrawal of the sea powers the continental war might have fallen of itself; but France with her hands freed carried on during 1713 a brilliant and successful campaign in Germany. On the 7th of March, 1714, peace was signed between France and Austria. Some embers of the war continued to burn in Catalonia and the Balearic Islands, which persisted in their rebellion against Philip V.; but the revolt was stifled as soon as the arms of France were turned against them. Barcelona was taken by storm in September, 1714; the islands submitted in the following summer.

The changes effected by this long war and sanctioned by the peace, neglecting details of lesser or passing importance, may be stated as follows: 1. The House of Bourbon was settled on the Spanish throne, and the Spanish empire retained its West Indian and American possessions; the purpose of William III. against her dominion there was frustrated when England undertook to support the Austrian prince, and so fastened the greater part of her naval force to the Mediterranean. 2. The Spanish empire lost its possessions in the Netherlands, Gelderland going to the new kingdom of Prussia and Belgium to the emperor; the Spanish Netherlands thus became the Austrian Netherlands. 3. Spain lost also the principal islands of the Mediterranean; Sardinia being given to Austria, Minorca with its fine harbor to Great Britain, and Sicily to the Duke of Savoy. 4. Spain lost also her Italian possessions, Milan and Naples going to the emperor. Such, in the main, were the results to Spain of the fight over the succession to her throne.

France, the backer of the successful claimant, came out of the strife worn out, and with considerable loss of territory. She had succeeded in placing a king of her own royal house on a neighboring throne, but her sea strength was exhausted, her population diminished, her financial condition ruined. The European territory surrendered was on her northern and eastern boundaries; and she abandoned the use of the port of Dunkirk, the centre of that privateering warfare so dreaded by English merchants. In America, the cession of Nova Scotia and Newfoundland was the first step toward that entire loss of Canada which befell half a century later; but for the present she retained Cape Breton Island, with its port Louisburg, the key to the Gulf and River St. Lawrence.

The gains of England, by the treaty and the war, corresponded very nearly to the losses of France and Spain, and were all in the direction of extending and strengthening her sea power. Gibraltar and Port Mahon in the Mediterranean, and the colonies already mentioned in North America, afforded new bases to that power, extending and protecting her trade. Second only to the expansion of her own was the injury to the sea power of France and Holland, by the decay of their navies in consequence of the immense drain of the land warfare; further indications of that decay will be given later. The very neglect of Holland to fill up her quota of ships, and the bad condition of those sent, while imposing extra burdens upon England, may be considered a benefit, forcing the British navy to greater development and effort. The disproportion in military power on the sea was further increased by the destruction of the works at Dunkirk; for though not in itself a first-class port, nor of much depth of water, it had great artificial military strength, and its position was peculiarly adapted to annoy English trade. It was but forty miles from the South Foreland and the Downs, and the Channel abreast it is but twenty miles wide. Dunkirk was one of Louis' earliest acquisitions, and in its development was as his own child; the dismantling of the works and filling-in of the port show the depth of his humiliation at this time. But it was the wisdom of England not to base her sea power solely on military positions nor even on fighting-ships, and the commercial advantages she had now gained by the war and the peace were very great. The grant of the slave trade with Spanish America, in itself lucrative, became yet more so as the basis for an immense smuggling intercourse with those countries, which gave the English a partial recompense for their failure to obtain actual possession; while the cessions made to Portugal by France in South America were mainly to the advantage of England, which had obtained the control of Portuguese trade by the treaty of 1703. The North American colonies ceded were valuable, not merely nor chiefly as military stations, but commercially; and treaties of commerce on favorable terms were made both with France and Spain. A minister of the day, defending the treaty in Parliament, said: "The advantages from this peace appear in the addition made to our wealth; in the great quantities of bullion lately coined in our mint; by the vast increase in our shipping employed since the peace, in the fisheries, and in merchandise; and by the remarkable growth of the customs upon imports, and of our manufactures, and the growth of our country upon export;" in a word, by the impetus to trade in all its branches.

While England thus came out from the war in good running condition, and fairly placed in that position of maritime supremacy which she has so long maintained, her old rival in trade and fighting was left hopelessly behind. As the result of the war Holland obtained nothing at sea,—no colony, no station. The commercial treaty with France placed her on the same terms as England, but she received no concessions giving her a footing in Spanish America like that obtained by her ally. Indeed, some years before the peace, while the coalition was still maintaining Carlos, a treaty was made with the latter by the British minister, unknown to the Dutch, practically giving the British monopoly of Spanish trade in America; sharing it only with Spaniards, which was pretty much the same as not sharing it at all. This treaty accidentally became known, and made a great impression on the Dutch; but England was then so necessary to the coalition that she ran no risk of being left out by its other members. The gain which Holland made by land was that of military occupation only, of certain fortified places in the Austrian Netherlands, known to history as the "barrier towns;" nothing was added by them to her revenue, population, or resources; nothing to that national strength which must underlie military institutions. Holland had forsaken, perhaps unavoidably, the path by which she had advanced to wealth and to leadership among nations. The exigencies of her continental position had led to the neglect of her navy, which in those days of war and privateering involved a loss of carrying-trade and commerce: and although she held her head high through the war, the symptoms of weakness were apparent in her failing armaments. Therefore, though the United Provinces attained the great object for which they began the war, and saved the Spanish Netherlands from the hands of France, the success was not worth the cost. Thenceforth they withdrew for a long period from the wars and diplomacy of Europe; partly, perhaps, because they saw how little they had gained, but yet more from actual weakness and inability. After the strenuous exertions of the war came a reaction, which showed painfully the inherent weakness of a State narrow in territory and small in the number of its people. The visible decline of the Provinces dates from the Peace of Utrecht; the real decline began earlier. Holland ceased to be numbered among the great powers of Europe, her navy was no longer a military factor in diplomacy, and her commerce also shared in the general decline of the State.

It remains only to notice briefly the results to Austria, and to Germany generally. France yielded the barrier of the Rhine, with fortified places on the east bank of the river. Austria received, as has been mentioned, Belgium, Sardinia, Naples, and the Spanish possessions in northern Italy; dissatisfied in other respects, Austria was especially discontented at her failure to obtain Sicily, and did not cease negotiating afterward, until she had secured that island. A circumstance more important to Germany and to all Europe than this transitory acquisition of distant and alien countries by Austria was the rise of Prussia, which dates from this war as a Protestant and military kingdom destined to weigh in the balance against Austria.

Such were the leading results of the War of the Spanish Succession, "the vastest yet witnessed by Europe since the Crusades." It was a war whose chief military interest was on the land,—a war in which fought two of the greatest generals of all times, Marlborough and Prince Eugene, the names of whose battles, Blenheim, Ramillies, Malplaquet, Turin, are familiar to the most casual reader of history; while a multitude of able men distinguished themselves on the other theatres of the strife, in Flanders, in Germany, in Italy, in Spain. On the sea only one great battle, and that scarcely worthy of the name, took place. Yet looking only, for the moment, to immediate and evident results, who reaped the benefit? Was it France, whose only gain was to seat a Bourbon on the Spanish throne? Was it Spain, whose only gain was to have a Bourbon king instead of an Austrian, and thus a closer alliance with France? Was it Holland, with its barrier of fortified towns, its ruined navy, and its exhausted people? Was it, lastly, Austria, even though she had fought with the money of the sea powers, and gained such maritime States as the Netherlands and Naples? Was it with these, who had waged war more and more exclusively by land, and set their eyes more and more on gains on the land, or was it not rather with England, who had indeed paid for that continental war and even backed it with her troops, but who meanwhile was building up her navy, strengthening, extending, and protecting her commerce, seizing maritime positions,—in a word, founding and rearing her sea power upon the ruins of that of her rivals, friend and foe alike? It is not to depreciate the gains of others that the eye fixes on England's naval growth; their gains but bring out more clearly the immenseness of hers. It was a gain to France to have a friend rather than an enemy in her rear, though her navy and shipping were ruined. It was a gain to Spain to be brought in close intercourse with a living country like France after a century of political death, and she had saved the greater part of her threatened possessions. It was a gain to Holland to be definitively freed from French aggression, with Belgium in the hands of a strong instead of a weak State. And it doubtless was a gain to Austria not only to have checked, chiefly at the expense of others, the progress of her hereditary enemy, but also to have received provinces like Sicily and Naples, which, under wise government, might become the foundation of a respectable sea power. But not one of these gains, nor all together, compared in greatness, and much less in solidity, with the gain to England of that unequalled sea power which started ahead during the War of the League of Augsburg, and received its completeness and seal during that of the Spanish Succession. By it she controlled the great commerce of the open sea with a military shipping that had no rival, and in the exhausted condition of the other nations could have none; and that shipping was now securely based on strong positions in all the disputed quarters of the world. Although her Indian empire was not yet begun, the vast superiority of her navy would enable her to control the communications of other nations with those rich and distant regions, and to assert her will in any disputes arising among the trading-stations of the different nationalities. The commerce which had sustained her in prosperity, and her allies in military efficiency, during the war, though checked and harassed by the enemy's cruisers (to which she could pay only partial attention amid the many claims upon her), started with a bound into new life when the war was over. All over the world, exhausted by their share of the common suffering, people were longing for the return of prosperity and peaceful commerce; and there was no country ready as England was in wealth, capital, and shipping to forward and reap the advantages of every enterprise by which the interchange of commodities was promoted, either by lawful or unlawful means. In the War of the Spanish Succession, by her own wise management and through the exhaustion of other nations, not only her navy but her trade was steadily built up; and indeed, in that dangerous condition of the seas, traversed by some of the most reckless and restless cruisers France ever sent out, the efficiency of the navy meant safer voyages, and so more employment for the merchant-ships. The British merchant-ships, being better protected than those of the Dutch, gained the reputation of being far safer carriers, and the carrying-trade naturally passed more and more into their hands; while the habit of employing them in preference, once established, was likely to continue.

"Taking all things together," says an historian of the British navy, "I doubt whether the credit of the English nation ever stood higher than at this period, or the spirit of the people higher. The success of our arms at sea, the necessity of protecting our trade, and the popularity of every step taken to increase our maritime power, occasioned such measures to be pursued as annually added to our force. Hence arose that mighty difference which at the close of the year 1706 appeared in the Royal Navy; this, not only in the number but in the quality of the ships, was much superior to what it had been at the time of the Revolution or even before. Hence it was that our trade rather increased than diminished during the last war, and that we gained so signally by our strict intercourse with Portugal."77

The sea power of England therefore was not merely in the great navy, with which we too commonly and exclusively associate it; France had had such a navy in 1688, and it shrivelled away like a leaf in the fire. Neither was it in a prosperous commerce alone; a few years after the date at which we have arrived, the commerce of France took on fair proportions, but the first blast of war swept it off the seas as the navy of Cromwell had once swept that of Holland. It was in the union of the two, carefully fostered, that England made the gain of sea power over and beyond all other States; and this gain is distinctly associated with and dates from the War of the Spanish Succession. Before that war England was one of the sea powers; after it she was the sea power, without any second. This power also she held alone, unshared by friend and unchecked by foe. She alone was rich, and in her control of the sea and her extensive shipping had the sources of wealth so much in her hands that there was no present danger of a rival on the ocean. Thus her gain of sea power and wealth was not only great but solid, being wholly in her own hands; while the gains of the other States were not merely inferior in degree, but weaker in kind, in that they depended more or less upon the good will of other peoples.

Is it meant, it may be asked, to attribute to sea power alone the greatness or wealth of any State? Certainly not. The due use and control of the sea is but one link in the chain of exchange by which wealth accumulates; but it is the central link, which lays under contribution other nations for the benefit of the one holding it, and which, history seems to assert, most surely of all gathers to itself riches. In England, this control and use of the sea seems to arise naturally, from the concurrence of many circumstances; the years immediately preceding the War of the Spanish Succession had, moreover, furthered the advance of her prosperity by a series of fiscal measures, which Macaulay speaks of as "the deep and solid foundation on which was to rise the most gigantic fabric of commercial prosperity which the world had ever seen." It may be questioned, however, whether the genius of the people, inclined to and developed by trade, did not make easier the taking of such measures; whether their adoption did not at least partially spring from, as well as add to, the sea power of the nation. However that may be, there is seen, on the opposite side of the Channel, a nation which started ahead of England in the race,—a nation peculiarly well fitted, by situation and resources, for the control of the sea both by war and commerce. The position of France is in this peculiar, that of all the great powers she alone had a free choice; the others were more or less constrained to the land chiefly, or to the sea chiefly, for any movement outside their own borders; but she to her long continental frontier added a seaboard on three seas. In 1672 she definitely chose expansion by land. At that time Colbert had administered her finances for twelve years, and from a state of terrible confusion had so restored them that the revenue of the King of France was more than double that of the King of England. In those days France paid the subsidies of Europe; but Colbert's plans and hopes for France rested upon making her powerful on the sea. The war with Holland arrested these plans, the onward movement of prosperity ceased, the nation was thrown back upon itself, shut off from the outside world. Many causes doubtless worked together to the disastrous result which marked the end of the reign of Louis XIV.: constant wars, bad administration in the latter half of the period, extravagance throughout; but France was practically never invaded, the war was kept at or beyond her own frontiers with slight exceptions, her home industries could suffer little from direct hostilities. In these respects she was nearly equal to England, and under better conditions than her other enemies. What made the difference in the results? Why was France miserable and exhausted, while England was smiling and prosperous? Why did England dictate, and France accept, terms of peace? The reason apparently was the difference in wealth and credit. France stood alone against many enemies; but those enemies were raised and kept moving by English subsidies. The Lord Treasurer of England, writing in 1706 to Marlborough, says:—

"Though the land and trade of both England and Holland have excessive burthens upon them, yet the credit continues good both of them and us; whereas the finances of France are so much more exhausted that they are forced to give twenty and twenty-five per cent for every penny they send out of the kingdom, unless they send it in specie."

In 1712 the expenditure of France was 240,000,000 francs, while the taxes brought in only 113,000,000 gross, of which, after deducting losses and necessary expenses, only 37,000,000 remained in the treasury; the deficit was sought to be met by anticipating parts of the revenue for years ahead, and by a series of extraordinary transactions tedious to name or to understand.

"In the summer of 1715 [two years after the peace] it seemed as if the situation could not grow worse,—no more public nor private credit; no more clear revenue for the State; the portions of the revenue not pledged, anticipated on the following years. Neither labor nor consumption could be resumed for want of circulation; usury reigned on the ruins of society. The alternations of high prices and the depreciation of commodities finally crushed the people. Provision riots broke out among them, and even in the army. Manufactures were languishing or suspended; forced mendicity was preying upon the cities. The fields were deserted, the lands fallow for lack of instruments, for lack of manure, for lack of cattle; the houses were falling to ruin. Monarchical France seemed ready to expire with its aged king."78

Thus it was in France, with a population of nineteen millions at that time to the eight millions of all the British Islands; with a land vastly more fertile and productive; before the great days, too, of coal and iron. "In England, on the contrary, the immense grants of Parliament in 1710 struck the French prodigiously; for while their credit was low, or in a manner quite gone, ours was at its zenith." During that same war "there appeared that mighty spirit among our merchants which enabled them to carry on all their schemes with a vigor that kept a constant circulation of money throughout the kingdom, and afforded such mighty encouragement to all manufactures as has made the remembrance of those times grateful in worse."

"By the treaty with Portugal we were prodigious gainers.... The Portuguese began to feel the comfortable effects of their Brazil gold mines, and the prodigious commerce that followed with us made their good fortune in great measure ours; and so it has been ever since; otherwise I know not how the expenses of the war had been borne.... The running cash in the kingdom increased very considerably, which must be attributed in great measure to our Portuguese trade; and this, as I have made manifest, we owed wholly to our power at sea [which took Portugal from the alliance of the two crowns, and threw her upon the protection of the maritime powers]. Our trade with the Spanish West Indies by way of Cadiz was certainly much interrupted at the beginning of this war; but afterward it was in great measure restored, as well by direct communication with several provinces when under the Archduke, as through Portugal, by which a very great though contraband trade was carried on. We were at the same time very great gainers by our commerce with the Spaniards in the West Indies [also contraband].... Our colonies, though complaining of neglect, grew richer, more populous, and carried their trade farther than in former times.... Our national end with respect to England was in this war particularly in great measure answered,—I mean the destruction of the French power at sea, for, after the battle of Malaga, we hear no more of their great fleets; and though by this the number of their privateers was very much increased, yet the losses of our merchants were far less in the latter than in the former reign.... It is certainly a matter of great satisfaction that … setting out at first with the sight of so great a naval power as the French king had assembled in 1688, while we struggled under such difficulties, and when we got out of that troublesome war, in 1697, found ourselves loaded with a debt too heavy to be shaken off in the short interval of peace, yet by 1706, instead of seeing the navy of France riding upon our coast, we sent every year a powerful fleet to insult theirs, superior to them not only in the ocean, but in the Mediterranean, forcing them entirely out of that sea by the mere sight of our flag.... By this we not only secured our trade with the Levant, and strengthened our interests with all the Italian princes, but struck the States of Barbary with terror, and awed the Sultan from listening to any proposals from France. Such were the fruits of the increase of our naval power, and of the manner in which it was employed.... Such fleets were necessary; they at once protected our flag and our allies, and attached them to our interest; and, what is of greater importance than all the rest, they established our reputation for maritime force so effectually that we feel even to this day [1740] the happy effects of the fame thus acquired."79

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