TWO:He despatched a squadron of ten ships of the line to the Mediterranean, under Admiral Haddock; another strong squadron sailed for the West Indies; letters of marque and reprisal were issued to the merchants; and troops and stores were forwarded to Georgia, which the Spaniards had threatened to invade. He gave directions to all merchants in Spanish ports to register their goods with a public notary in case of a rupture. These measures produced a rapid change of tone at the Spanish Court. On comparing the demands on both sides for damages sustained in commerce, there appeared a balance in favour of England of two hundred thousand pounds. Against this, the Spaniards demanded sixty thousand pounds in compensation for the ships taken by Admiral Byng in 1718a claim which Stanhope would never allow, but which had been recognised in the Treaty of Seville, and was now, therefore, acknowledged. This reduced the sum to a hundred and forty thousand pounds, which the Spanish Court proposed should be paid by assignments on the American revenues. This, the Ministers were well aware, might involve the most endless delays and uncertainties, and they certainly showed a most conceding spirit by allowing a deduction of forty-five thousand pounds for prompt payment at Madrid. The sum was now reduced to ninety-five thousand pounds; and this being agreed to, a convention was signed on the 14th of January, 1739.The triumph of the Whigs was complete. Whilst Oxford, who had been making great efforts at the last to retrieve himself with his party by assisting them to seize the reins of power on the queen's illness, was admitted in absolute silence to kiss the king's hand, and that not without many difficulties, Marlborough, Somers, Halifax, and the rest were received with the most cordial welcome. Yet, on appointing the new cabinet, the king showed that he did not forget the double-dealing of Marlborough. He smiled on him, but did not place him where he hoped to be, at the head of affairs. He made Lord Townshend Secretary of State and Prime Minister; Stanhope, the second Secretary; the Earl of Mar was removed from the Secretaryship of Scotland to make way for the Duke of Montrose; Lord Halifax was made First Lord Commissioner of the Treasury, and was raised to an earldom, and was allowed to confer on his nephew the sinecure of Auditor of the Exchequer; Lord Cowper became Lord Chancellor; Lord Wharton was made Privy Seal, and created a marquis; the Earl of Nottingham became President of the Council; Mr. Pulteney was appointed Secretary-at-War; the Duke of Argyll, Commander-in-Chief for Scotland; Shrewsbury, Lord Chamberlain and Groom of the Stole; the Duke of Devonshire became Lord Steward of the Household; the Duke of Somerset, Master of the Horse; Sunderland, Lord-lieutenant of Ireland; Walpole was at first made simply Paymaster of the Forces, without a place in the cabinet, but his ability in debate and as a financier soon raised him to higher employment; Lord Orford was made First Lord of the Admiralty; and Marlborough, Commander-in-Chief and Master of the Ordnance. His power, however, was gone. In the whole new cabinet Nottingham was the only member who belonged to the Tory party, and of late he had been acting more in common with the Whigs. The Tories complained vehemently of their exclusion, as if their dealings with the Pretender had been a recommendation to the House of Hanover. They contended that the king should have shown himself the king of the whole people, and aimed at a junction of the two parties.
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