The prospects of the Allies became daily more gloomy. Wurmser, the Austrian general, was driven back, the blockade of Landau raised, and this moment was selected by the Prussian king and his ministers to force a subsidy under the significant threat of an entire withdrawal of his army, which for the present remained in a state of suspicious inactivity. Russia at this juncture came forward to interfere. The Prince de Nassau, a spurious dignitary and favourite of Catharine, arrived at Berlin with a communication for Frederick William, urging him in the strongest manner to act in concert with his allies, and representing very forcibly that the partition of Poland, and the engagements he contracted for his share, obliged him to continue the war, and that his own declarations and manifestoes from the first, by his own confession, made him a principal in it. Notwithstanding this good advice, the Empress cautiously abstained on hinting at pecuniary succours, being probably aware that a Russian subsidy would answer his majesty's purpose as well as one from England. Early in the year 1794, the Duke of Brunswick resigned the command of the Prussian forces. He was succeeded by Marshal Möllendorff--a soldier of some reputation, but old, testy, and pragmatical.
After much time wasted in preliminaries, and continued threats on the part of Prussia to withdraw immediately from the alliance unless subsidies were forthcoming, Lord Malmesbury was empowered to make the following proposals: Two millions sterling were to be given to the King of Prussia to bring 100,000 men into the field. Of this sum England was to furnish two-fifths, or £800,000; Austria and Holland, each one-fifth; and the remainder was to be considered as an advance from Prussia, to be reimbursed by France at the restoration of peace. Munificent as this proposal may appear--and it really was so when the relative situation of the parties is considered--it did not at first sight appear large enough to satisfy the craving appetite of Frederick William, who, in a private interview with Lord Malmesbury, had the assurance to demand for the proposed succours no less a sum than _twenty millions_ of dollars, without reckoning the "bread and forage!" The firm conduct and resolute tone of Lord Malmesbury, seem at last to have convinced the rapacious monarch that in grasping at too much he might lose all; and, after a great deal of shabby negotiation and bargaining, a settlement was nearly effected on the original terms. Austria, however, positively declined to become bound for any part of the subsidy--we doubt not for sufficient reasons. Holland, in more alarm, was willing to contribute her share; but so many impediments were thrown in the way of a settlement by the machinations of the French party at Berlin, that Lord Malmesbury found it indispensable to quit that court and conclude the negotiation at the Hague. He was accompanied thither by the Prussian minister, Haugwiz--a man whose character for honesty must be left to the verdict of posterity--and on the nineteenth April 1794, a treaty was concluded between Prussia, Holland, and England, by which the former power was bound to furnish an army of 62,000 men, under a Prussian commander-in-chief, to be subsidized by the other states, and to serve against their common enemies. The maritime powers agreed to pay his Prussian majesty £50,000 per month to the end of the year, £300,000 to put the army in motion, and £100,000 on its return home. All conquests made were to be at the disposal of the maritime powers.