The first consequence of Saratoga was the retreat of the British government from every one of the positions for the sake of which it had begun the war. The news of Burgoyne's surrender reached England just before Parliament adjourned for Christmas, and Lord North immediately gave notice that as soon as the holidays were over he should bring in measures for conciliating the Americans. The general feeling in England was one of amazement and consternation. In these days, when we are accustomed to contemplate military phenomena of enormous magnitude, when we have lately carried on a war in which more than two million men were under arms, and more than two million dollars were expended every day, we must not forget how different was the historic background upon which events were projected a century ago. Those were not the days of submarine telegraphs and Cunard steamships, and in trying to carry on warfare across three thousand miles of ocean the problem before George III. was far more arduous than that which the great Frederick had solved, when, acting on interior lines and supported by British gold, he overcame the combined assaults of France and Austria and Russia. The loss which Great Britain had now suffered could not easily be made good. At the same time it was generally believed, both in England and on the continent of Europe, that the loss of the American colonies would entail the ruin of the British Empire. Only a few wise political economists, "literary men," like Adam Smith and Josiah Tucker, were far-seeing enough to escape this prodigious fallacy; even Chatham was misled by it. It was not understood that English America and English Britain were bound together by commercial and social ties so strong that no question of political union or severance could permanently affect them. It was not foreseen that within a century the dealings of Great Britain with the independent United States would far exceed her dealings with the rest of the world. On the contrary, it was believed that if political independence were conceded to the Americans, the whole stream of transatlantic commerce would somehow be diverted to other parts of Europe, that the British naval power would forthwith decay, and that England would sink from her imperial position into such a mere insular nation as that over which Henry VIII. had ruled. So greatly did men overrate political conditions; so far were they from appreciating those economic conditions which are so much more deep-seated and essential. [Portrait: LORD NORTH] [Sidenote: Views of the different parties]