The peace left matters practically as they had stood before the war, with the significant exception that Frederick the Great retained Silesia. Not a word was said as to the regulation of trade between England and Spain, which had been the original ground of quarrel; and as between England and France it was agreed that there should be mutual restitution of all captures. Yet this could not set the two countries in the same position as before the war. The French were utterly exhausted; but the British, though not a little harassed by the cost of maintaining armies and producing subsidies, had received a military training which was to stand them in good stead for the great struggle that lay before them. To understand this struggle aright it must first be seen what was implied by the mutual restitution of all captures, for among the possessions that had changed hands during the war were Cape Breton and Madras. The time is now come to watch the building up of empire in distant lands to east and west. Let us turn first to the great Peninsula of the East. AUTHORITIES.--The official correspondence in the Record Office. _F. O. Military Auxiliary Expeditions._ _Campagnes de Louis XV._ _Espagnac._ _Life of the Duke of Cumberland._ Some useful details as to Lauffeld are to be found in the _Gentleman's Magazine_. [Illustration: ROUCOUX. Sept. 30^{th}/Oct. 11^{th} 1746.] [Illustration: LAUFFELD. June 21^{st}/July 2^{nd} 1747. _Walker & Boutall del._ _To face page 164._ ] BOOK VIII CHAPTER I [Sidenote: 1023.] [Sidenote: 1193.] [Sidenote: 1526, April 20.] [Sidenote: 1672.] [Sidenote: 1680.] [Sidenote: 1687.] [Sidenote: 1707.]