The English, notwithstanding their heavy loss in the Four Days' Battle, were at sea again within two months, much to the surprise of the Dutch; and on the 4th of August another severe fight was fought off the North Foreland, ending in the complete defeat of the latter, who retired to their own coasts. The English followed, and effected an entrance into one of the Dutch harbors, where they destroyed a large fleet of merchantmen as well as a town of some importance. Toward the end of 1666 both sides were tired of the war, which was doing great harm to trade, and weakening both navies to the advantage of the growing sea power of France. Negotiations looking toward peace were opened; but Charles II., ill disposed to the United Provinces, confident that the growing pretensions of Louis XIV. to the Spanish Netherlands would break up the existing alliance between Holland and France, and relying also upon the severe reverses suffered at sea by the Dutch, was exacting and haughty in his demands. To justify and maintain this line of conduct he should have kept up his fleet, the prestige of which had been so advanced by its victories. Instead of that, poverty, the result of extravagance and of his home policy, led him to permit it to decline; ships in large numbers were laid up; and he readily adopted an opinion which chimed in with his penury, and which, as it has had advocates at all periods of sea history, should be noted and condemned here. This opinion, warmly opposed by Monk, was:-- "That as the Dutch were chiefly supported by trade, as the supply of their navy depended upon trade, and, as experience showed, nothing provoked the people so much as injuring their trade, his Majesty should therefore apply himself to this, which would effectually humble them, at the same time that it would less exhaust the English than fitting out such mighty fleets as had hitherto kept the sea every summer.... Upon these motives the king took a fatal resolution of laying up his great ships and keeping only a few frigates on the cruise."[38] In consequence of this economical theory of carrying on a war, the Grand Pensionary of Holland, De Witt, who had the year before caused soundings of the Thames to be made, sent into the river, under De Ruyter, a force of sixty or seventy ships-of-the-line, which on the 14th of June, 1667, went up as high as Gravesend, destroying ships at Chatham and in the Medway, and taking possession of Sheerness. The light of the fires could be seen from London, and the Dutch fleet remained in possession of the mouth of the river until the end of the month. Under this blow, following as it did upon the great plague and the great fire of London, Charles consented to peace, which was signed July 31, 1667, and is known as the Peace of Breda. The most lasting result of the war was the transfer of New York and New Jersey to England, thus joining her northern and southern colonies in North America.