Negociations for peace, therefore, proved abortive. Even Bute considered many of the proposals of the French if not insulting to the majesty of the British nation, at least inadmissible. Yet these négociations resulted in the downfall of Pitt. At the council-table, that great minister represented that Spain was only waiting for the arrival of her annual plate-fleet from America, and then she would declare war. He proposed, therefore, that her declaration should be anticipated by England: that war should be forthwith proclaimed against Spain, and a fleet sent out to intercept her ships and treasures from the western world. He likewise proposed an immediate attack upon her colonies; recommending the capture of the Havannah and the occupation of the Isthmus of Panama, from whence an expedition might be sent against Manilla and the Philippine Isles, to intercept the communication between the continent of South America and the rich regions of the East. It suited the purpose of Bute, however, to raise the laugh of incredulity as to the declaration of war by Spain, questioning, at the same time, the real meaning of the treaty entered into between the two Bourbons. The other members of the cabinet also--Lord Temple excepted--pronounced the measures proposed by Pitt too precipitate, and he had no alternative but to resign; especially as he found, also, that the king was adverse to his schemes. Accordingly, on the 6th of October, Pitt delivered up his seals to the king, which his majesty received with ease and firmness, but without requesting him to resume them. The monarch, notwithstanding, lamented to him the loss of so valuable a servant, while he declared that even if his cabinet had been unanimous for war with Spain, he should have found great difficulty in consenting to such a measure. Pitt was affected by the kind, yet dignified, behaviour of the young king. “I confess, sire,” said he, with emotion, “I had but too much reason to expect your majesty’s displeasure: I did not come prepared for this exceeding goodness: pardon me, sir; it overpowers,--it oppresses me.”
Pitt retired with a pension of £3,000 per annum, which was to be continued for three lives. The peerage was offered him, but he declined it personally, accepting it only for his wife and her issue. He was succeeded in office by Lord Egremont, son of the great Tory, Sir William Wyndam. At the same time Lord Temple retired from office, and the privy seal was given to the Duke of Bedford. The resignation of Mr. Pitt, with his honours and rewards, were published in the Gazette on the following day, and in the same paper a letter was published from the English ambassador at Madrid, which was replete with assurances of the pacific intentions of Spain. On this circumstance, combined with the resignation of Mr. Pitt, Burke remarks:--“It must be owned that this manouvre was very skilfully executed: for it at once gave the people to understand the true motive to the resignation, the insufficiency of that motive, and the gracious-ness of the king, notwithstanding the abrupt departure of his minister. If after this the late minister should choose to enter into opposition, he must go into it loaded and oppressed with the imputation of the blackest ingratitude; if, on the other hand, he should retire from business, or should concur in support of that administration which he had left, because he disapproved its measures, his acquiescence would be attributed by the multitude to a bargain for his forsaking the public, and that the title and his pension were the considerations. These were the barriers that opposed against that torrent of popular rage which it was apprehended would proceed from this resignation. And the truth is, they answered their end perfectly.”