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THREE:Melville was now permitted by the House of Peers to go down to the House of Commons, notwithstanding their conclusion on the subject, to make his defence, and he made a very long speech, contending that he had not embezzled a farthing of the public money, and exalting his services to the country, especially in his India administration. But on the head of Secret Service Money he was as close as the grave. He declared that "if he had disclosed any of these transactions he should have felt himself guilty not only of a breach of public duty, but of a most unwarrantable breach of private honour." There were twenty thousand pounds which he never did, and never could, account for on this ground, and there were forty thousand pounds drawn at once by Pitt from the Navy Fund. He said he knew very well for what purposes these sums had been paid, but that nothing would compel him to disclose it. When it was asked him whether Mr. Trotter had not kept large sums belonging to the Navy Fund in Coutts's Bank, and speculated with them to his own great enrichment, he admitted that Trotter had had such sums for considerable times in Coutts's Bank, but that they were always forthcoming when wanted, and that no single payment had been delayed on that account; and that out of the one hundred and thirty-four millions which had passed through his hands, nothing had been lost. He praised Trotter in the highest manner, but was silent as to the private use that he had so long, and to such advantage to himself, made of the public money. He admitted that he had himself held considerable sums of this money at different times in his own hands, but had repaid the whole before quitting[503] office, and this was all that the Act of 1785 required. He seemed to admit that he had paid money out of the Navy Fund for other than naval objects, and for these secret service purposes. Some of these were in Scotland, of which, also, he had the administration to a certain degree. And here the public called to mind that Watt, the spy and informer against the Scottish Reformers, had acknowledged to have been employed and paid by Dundas, so that it was clear whither some of the Navy Fund had gone. Melville entered into long explanations regarding a written release which had passed reciprocally between him and Trotter on winding up their affairs, in which they agreed to destroy all their vouchers for the sums paid away. This looked very black, but Melville contended that it was only a matter of course��a thing constantly done by officials in like circumstances, which, if true, made the matter all the worse for the country. But Melville contended that this clause in the release was merely a form; that it did not mean that they should literally destroy the vouchers, but only that they should be rendered invalid as evidence in any prosecution, which very little mended the matter. Melville declared that he had not, in consequence of the clause, destroyed a single paper.Pitt, on the day mentioned, announced these facts, and declared that his Majesty had demanded satisfaction from the Court of Spain for the insult to our flag and for the usurpation of our settlement; but that considerable armaments were making in the ports of Spain. He called upon the House to address his Majesty, imploring him to take all necessary measures for the vindication of our honour and our rights. Fox naturally expressed his surprise at this announcement, after the high assurances of such profound prospects of peace little more than a fortnight before. He moreover asserted that not only were the Ministers fully aware of all these circumstances at the very moment when the Premier made these statements, but that he had himself been aware of them a considerable time before that. Pitt endeavoured to explain that all the circumstances were not known when he professed such confidence in peace; but these assertions were clearly as little true as the former, for the British Government had received information from the Spanish Government itself, as early as the 10th of the previous February. Notwithstanding, the House supported the Government warmly in its determination to resist the enormous claims of Spain and to compel her to make satisfaction. Lord Howe was desired to have a fleet in readiness, and the Spanish Court having taken a high tone to Mr. Merry, our Minister at Madrid, Mr. Fitzherbert was dispatched thither as our plenipotentiary. He arrived at Madrid in the beginning of June. At first the Spanish Court were very high, and applied to France for co-operation, according to treaty; but France, in the throes of the Revolution, had no money to spend in such armaments and, on second thoughts, Spain dreaded introducing French revolutionary sailors amongst their own. They soon, therefore, lowered their tone, agreed to surrender Nootka Sound, make full compensation for all damages, and consented that British subjects should continue their fisheries in the South Seas, and make settlements on any coasts not already occupied. Captain Vancouver, who had been with Cook as a midshipman in his last two voyages, being present at his tragical death, was sent out in the following year to see that the settlement of Nootka Sound was duly surrendered to England. He saw this done, the Spanish commander, Quadra, behaving in a very friendly manner; and he proceeded then, during the years 1792 and 1793, to make many accurate surveys of the western coasts of North and South America, in which the Spaniards gave him every assistance. The British took formal possession not only of Nootka Sound, but of the fine island called after Vancouver. Pitt was highly complimented for his firmness and ability in the management of this business.

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