He at once ordered Córdoba and Bausset to sail and intercept the prize. They were right across Moutray’s route when, on the 8th August, in Lat. 36° 40 N. and Lon. 15° W., their sails were seen on the horizon at sundown from the masthead of Moutray’s advance ship. Thinking the sails belonged to neutral ships, he held on till night. Then the number of lights reported as seen ahead made him alter his mind. He signalled to his convoy by gun-fire to lie to with their heads to the west, and then, again by gun-fire, ordered them to continue their course. It was his meaning that they should go as they were then pointing. The captains of the Indiamen, transports, and merchant-ships understood that they were to resume the course they were on before they lay to, which was to the south. His signals had been heard by the allies, who steered for the sound of the guns. So when the sun rose on the 9th August, Moutray with his solitary 74 and frigates was well out to the west and to windward. The sixty-three ships under his charge were sailing right into the arms of a big French and Spanish fleet, which closed on them, and carried them all into Cadiz. It was the greatest disaster suffered by British commerce since Tourville had scattered the Smyrna convoy. The necessity for satisfying the public by making an example led to Moutray’s trial by a court martial, and he was reprimanded. In truth, nothing he could have done would have saved his convoy when once it was close to so great a force. He lived to be appointed as Commissioner of the Dockyard at Antigua, and to have some difficulties with Nelson. The allies returned in triumph to Cadiz, and their success encouraged the Spaniards to persevere in the war. A great fleet collected in the port in October,—Spanish ships, Frenchmen from Brest and from Toulon, and Guichen with a worn-out squadron from the West Indies; but it did nothing, and scattered to winter quarters. In 1781 the war grew in intensity. Disputes arising partly out of the exercise by the British Government of its claim to take an enemy’s goods out of a neutral ship, and partly out of the encouragement given to the Americans by the city of Amsterdam, led to a declaration of war on the Dutch Republic by Great Britain in December 1780. To guard against an attack by the Dutch on the trade with the Baltic, from whence our naval stores were mainly drawn, it was necessary to station a squadron in the North Sea, which threw an additional burden on the already heavily taxed navy. Every ship which could be patched up for service had to be put into commission. The number of vessels in “full sea pay” was 398, and 90,000 men, including 20,000 marines, were voted to form the crews.