Such had been the effect of the first shot fired in the struggle for American independence. When the news of the official declaration of this independence on July fourth, 1776, reached Paris and Madrid, the worst fears of the upholders of the old régime and the most exalted dreams of the champions of the new political ideal were realized. But neither France nor Spain dared openly to take sides against Britain, both having ample reason to avoid being involved in new wars. As Turgot intimated in his message, Spain was far more directly interested in the step taken by the British colonies and the possible effects it might have upon her own possessions. Hence France decided to do nothing without the agreement of Spain. Again it is Bancroft who gives the clearest statement of the economic position of Spain and her reasons for avoiding a break with Britain. He writes in his "History of the United States" (Vol. V., p. 535): "Equal to Great Britain in the number of her inhabitants, greatly surpassing that island in the extent of her home territory and her colonies, she did not love to confess or to perceive her inferiority in wealth and power. Her colonies brought her no opulence, for their commerce, which was soon to be extended to seven ports, then to twelve, and then to nearly all, was still confined to Cadiz; the annual exports to Spanish America had thus far fallen short of four millions of dollars in value, and the imports were less than the exports. Campomanes was urging through the press the abolition of restriction on trade; but for the time the delusion of mercantile monopoly held the ministers fast bound. The serious strife with Portugal had for its purpose the occupation of both banks of the river La Plata, that so the mighty stream might be sealed up against all the world but Cadiz. As a necessary consequence, Spanish shipping received no development; and, though the king constructed ships of the line and frigates, he could have no efficient navy, for want of proper nurseries of seamen. The war department was in the hands of an indolent chief, so that its business devolved on O'Reilly, whose character is known to us from his career in Louisiana, and whose arrogance and harshness were revolting to the Spanish nation. The revenue of the kingdom fell short of twenty-one millions of dollars, and there was a notorious want of probity in the management of the finances. In such a state of its navy, army, and treasury, how could it make war on England?"