Pitt himself believed that he would be unable to retain office and would have to resume work as a lawyer. The London merchants at this time offered him f i oo,000 in recognition of his conduct, but Pitt replied that "No consideration on earth shall ever induce me to accept it." At the general election of 1790 he obtained an increased majority. In April 1791 by his Constitutional Act he arranged for the division of Canada into Upper and Lower Canada. The following year he accepted the wardenship of the Cinque Ports which carried a salary of £3,000 a year.
Foreign Policy.—The first important act of Pitt's foreign policy—the commercial treaty with France—was complemen tary to his reorganization of the home finances. The abandonment of useless trade restrictions was plainly to the benefit of both countries and Fox could think of no better ground of attack than to assert that France was the unalterable enemy of England, to which objection Pitt replied that "to suppose that any nation could be unalterably the enemy of another is weak and childish." In 1787 there was trouble in Holland. The Emperor Joseph II. had been for some time preparing a labyrinthine scheme whereby he should consolidate his dominions by annexing Bavaria, whose elector was to be compensated in the Austrian Netherlands. The scheme was agreeable to France who was intriguing for the over throw of the Dutch stadholder and complete influence in Holland. War was only avoided after full preparations had been made (an expedition for instance was actually prepared for the capture of the Cape) because Prussia, who was opposed to Joseph II.'s policy was at length persuaded to stand with England. Upon Prussia's entry into Holland the Austro-Russo-French intrigue collapsed and the stadholder was restored. In 1789 England was brought into conflict with Spain who had seized the British trad ing post at Nootka Sound. Again war seemed imminent (over two millions sterling were spent in naval preparations), but Spain, receiving no support in Europe, was obliged to withdraw. Less successful was Pitt's intervention in the Eastern question. Cath erine II. of Russia was at war with Sweden and Turkey. The Triple Alliance (of England, Prussia and Holland) had gained a prestige which placed it in a position to work for the maintenance of the balance of power. But though Austria's support was de
tached from Russia and Gustavus III. made peace with Catherine, the empress was not to be diverted from her ambitions in East ern Europe. She gained great success in 1791, and Pitt, without adequate means of supporting his policy, determined to prevent Russia from establishing her power in the Black sea. He demanded that Russia should give up Oczakov, but Oczakov meant nothing on earth to the British public, and Catherine perceiving there was no force behind the ultimatum was unmoved by it. Though armament credits had been voted, Pitt was obliged to retire.
Pitt had not at first anticipated that the French Revolution would involve England in hostilities. In the spring of 1792 he was happily discussing finance, prophesying the reduction of 25 mil lions of debt in the next 15 years, and declaring in support of his vision that "there never was a time when, from the situation of Europe, we might more reasonably expect 15 years of peace than we may at the present moment." He had no intention of interfer ing in a matter which concerned France alone, and indeed in its original conception he was not unsympathetic to the aims of the Revolution. On Aug. loth, the French monarchy fell, and the Eng lish ambassador was recalled from Paris, and Chauvelin in London could henceforward be only received unofficially. But this was merely a question of diplomatic routine : friendly relations were not strained until the French, having already declared war upon Austria and Prussia, followed the victory of Jemappes by occupy ing the Austrian Netherlands, threatening Holland, and over turning the treaties which governed the navigation of the Scheldt. England was bound by treaty to support Holland; and, as she had been through the centuries, she was not less insistently bound in this matter by her own interests. The execution of the king, and among the French people a rising tide of truculence swiftly fol lowed. On Feb. I, while Pitt was outlining the provocations which Britain had received from France that country was despatching yet another in the shape of a declaration of war. The remainder of Pitt's life was to be spent in the shade of the revolutionary wars.