This was the last military service of importance performed by Marshal Count Lacy at that time; for soon after, the war came to a close, by the treaty of peace, signed in February, 1763, by which it was agreed that a mutual restitution of conquests and oblivion of injuries should take place; and that Prussia and Austria should be put in the same position as when the hostilities began; and thus happily ended this truly atrocious strife, in which nearly NINE HUNDRED THOUSAND SOLDIERS PERISHED. Prussia fought ten pitched battles, and lost 180,000 men; Russia, four great battles, and lost 120,000 men; Austria, ten battles, with the loss of 140,000 men; France lost 200,000; Britain, 165,000; Sweden, 25,000; and the Circles 28,000; while Austria found herself encumbered by one hundred millions of crowns of debt! For fourteen years Lacy led a life of peace, devoting himself to the development of discipline in the Austrian army, till the death of the Bavarian Elector, on the 30th December, 1777, opened up a new prospect of aggrandizement to the Imperial Government, and again lighted the torch of war in Germany. The Elector Palatine, the Elector of Saxony and Duke of Mechlenburg-Schwerin laid claim to the vacant Electoral hat; but their voices were lost when the formidable and covetous House of Hapsburg also put forth a demand, and the Emperor Joseph and Marshal Lacy appeared with 100,000 men, and an immense train of artillery, at the celebrated position of Konigsgratz, above the confluence of the Adler and the Rhine. The Prussians and Saxons broke into Bohemia, and compelled Loudon to retreat, and a year of the old manoeuvring war and devastation followed, till the Congress of Teschen, by which Charles Theodore, Elector Palatine of the House of Neuberg, obtained the Bavarian hat, on the 13th May, 1779. The Emperor was compelled to relinquish his unjust claims, and tranquillity was restored to Germany, enabling Count Lacy, then in his sixty-first year, once more to sheath the sword; and this command which he held in the Bavarian dispute was the last act of importance performed by him in the service of Austria. He had now the rank of Field-Marshal, which at the age of thirty-six he had declined, on the plea that his achievements were unworthy of it. He had the Grand Cross of Maria Theresa; he was a member of the Aulic Council, Chief of the Staff, and General of the Ordnance. During his command-in-chief of the Austrian army, the following romantic incident occurred.