This population of less than 18,000,000 souls, of which nearly one-third openly resented the Act of Union recently imposed on Ireland, was burdened by a National Debt which amounted to L537,000,000, and entailed a yearly charge of more than L20,000,000 sterling.  In the years of war with revolutionary France the annual expenditure had risen from L19,859,000 (for 1792) to the total of L61,329,000, which necessitated an income tax of 10 per cent. on all incomes of L200 and upwards.  Yet, despite party feuds, the nation was never stronger, and its fleets had never won more brilliant and solid triumphs.  The chief naval historian of France admits that we had captured no fewer than 50 ships of the line, and had lost to our enemies only five, thereby raising the strength of our fighting line to 189, while that of France had sunk to 47.[181] The prowess of Sir Arthur Wellesley was also beginning to revive in India the ancient lustre of the British arms; but the events of 1802-3 were to show that our industrial enterprise, and the exploits of our sailors and soldiers, were by themselves of little avail when matched in a diplomatic contest against the vast resources of France and the embodied might of a Napoleon.

Men and institutions were everywhere receiving the imprint of his will.  France was as wax under his genius.  The sovereigns of Spain, Italy, and Germany obeyed his fiat.  Even the stubborn Dutch bent before him.  On the plea of defeating Orange intrigues, he imposed a new constitution on the Batavian Republic whose independence he had agreed to respect.  Its Directory was now replaced by a Regency which relieved the deputies of the people of all responsibility.  A plebiscite showed 52,000 votes against, and 16,000 for, the new regime; but, as 350,000 had not voted, their silence was taken for consent, and Bonaparte’s will became law (September, 1801).

We are now in a position to appreciate the position of France and Great Britain.  Before the signature of the preliminaries of peace at London on October 1st, 1801, our Government had given up its claims to the Cape, Malta, Tobago, Martinique, Essequibo, Demerara, Berbice, and Curacoa, retaining of its conquests only Trinidad and Ceylon.

A belated attempt had, indeed, been made to retain Tobago.  The Premier and the Foreign Secretary, Lord Hawkesbury, were led by the French political agent in London, M. Otto, to believe that, in the ensuing negotiations at Amiens, every facility would be given by the French Government towards its retrocession to us, and that this act would be regarded as the means of indemnifying Great Britain for the heavy expense of supporting many thousands of French and Dutch prisoners.  The Cabinet, relying on this promise as binding between honourable men, thereupon endeavoured to obtain the assent of George III. to the preliminaries in their ultimate form, and only the prospect of regaining Tobago by this compromise induced the King to give it.  When it was too late, King and Ministers realized their mistake in relying on verbal promises and in failing to procure a written statement.[182]