was bent on clothing his own troops in it. It was clear that he was not quite sane, for he immediately recalled the Russian army which was acting against Frederick, hastened to make peace with him, and offered to restore all that had been won from him in the war, even to Prussia proper, which the Russians had possession of. His example was eagerly seized upon by Sweden, which was tired of the war. Both Russia and Sweden signed treaties of peace with Frederick in May, and Peter went farther: he dispatched an army into Silesia, where it had so lately been fighting against him, to fight against Austria. Elated by this extraordinary turn of affairs, the Prussian ambassador renewed his applications for money, urging that, now Russia had joined Frederick, it would be easy to subdue Austria and terminate the war. This was an opportunity for Bute to retrace with credit his steps; but he argued, on the contrary, that, having the aid of Russia, Frederick did not want that of England; and he is even accused of endeavouring to persuade Russia to continue its hostilities against Prussia; and thus he totally alienated a power which might have hereafter rendered us essential service, without gaining a single point. The Duke of Newcastle, man of mediocre merit as he was, saw farther than Bute into the disgraceful nature of thus abandoning a powerful ally at an extremity, as well as the impolicy of converting such a man into a mortal enemy; and, finding all remonstrances vain, resigned. Bute was glad to be rid of him; and Newcastle, finding both his remonstrance and resignation taken very coolly, had the meanness to seek to regain a situation in the Cabinet, but without effect, and threw himself into the Opposition. [Illustration: GEORGE III.] On Newcastle's resignation Bute placed himself at the head of the Treasury, and named Grenville Secretary of State--a fatal nomination, for Grenville lost America. Lord Barrington, though an adherent of Newcastle, became Treasurer of the Navy, and Sir Francis Dashwood Chancellor of the Exchequer. Bute, who, like all weak favourites, had not the sense to perceive that it was necessary to be moderate to acquire permanent power, immediately obtained a vacant Garter, and thus parading the royal favours, augmented the rapidly growing unpopularity which his want of sagacity and honourable principle was fast creating. He was beset by legions of libels, which fully exposed his incapacity, and as freely dealt with the connection between himself and the mother of the king.