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ONE:On the 31st of March Dundas introduced the Indian Budget, and soon afterwards Pitt congratulated the country on the fact that, so far from the American war having injured the trade or the power of Britain, the fact was that our shipping had increased considerably more than one-third since 1773, and we had been continually gaining strength even during the American war, and had relieved ourselves of a load of expense always incurred by the government of the States. This was an admirable argument for declaring all our colonies independent, if it meant anything; but Pitt went on seconding, and even surpassing Dundas in the prognostications of a long peace. What such ministerial speeches were worth was shown on the 5th of May, only a month and five days since the prophecy of Dundas, and not three weeks since his own prophecy, by Pitt announcing that the peace was already disturbed with Spain. It appeared that the high prices obtained by the crews of Captain Cook's ships, the Discovery and Resolution, at Canton, on his exploring voyages in the South Seas, for the ill-selected, half-worn furs brought from the north-west coast of America, had attracted the attention of adventurers under the direct protection of the East India Company. Mr. Mears, who had been a lieutenant in the royal navy, and a Mr. Tippin, were sent out in command each of a vessel. Tippin was wrecked on the coast of Kamtschatka; but Mears reached Prince William's Sound and wintered there, opening a good trade with the natives. In the spring of 1788 he discovered Nootka Sound, a fine bay on the west side of a small island on the west coast of Vancouver's Island. There he formed a settlement, making a bargain with the chief for it. He went to Canton with furs and was opening a fine trade, when the Spaniards came down on the settlement, seized four British vessels, but permitted two United States' vessels to remain unmolested. Part of the English crew were shipped in one of the American vessels to China, and the rest suffered to depart in one of their own ships after it had been plundered. The Spanish commander then settled himself in the new colony, and Spain set up a[372] general claim to all coasts and islands, and the whole Pacific as far as China.