was off the coast of Portugal, on the way back to England, when
the Duke of Ormond received intelligence that the treasure-ships
from America had just arrived in Europe, and had, in order to
avoid his armament, repaired to the harbour of Vigo. The cargo
consisted, it was said, of more than three millions sterling in
gold and silver, besides much valuable merchandise. The prospect
of plunder reconciled all disputes. Dutch and English admirals
and generals, were equally eager for action. The Spaniards might
with the greatest ease have secured the treasure by simply
landing it; but it was a fundamental law of Spanish trade that
the galleons should unload at Cadiz, and at Cadiz only. The
Chamber of Commerce at Cadiz, in the true spirit of monopoly,
refused, even at this conjuncture, to bate one jot of its
privilege. The matter was referred to the Council of the Indies.
That body deliberated and hesitated just a day too long. Some
feeble preparations for defence were made. Two ruined towers at
the mouth of the bay of Vigo were garrisoned by a few ill-armed
and untrained rustics; a boom was thrown across the entrance of
the basin; and a few French ships of war, which had convoyed the
galleons from America, were moored within. But all was to no
purpose. The English ships broke the boom; Ormond and his
soldiers scaled the forts; the French burned their ships, and
escaped to the shore. The conquerors shared some millions of
dollars; some millions more were sunk. When all the galleons had
been captured or destroyed came an order in due form allowing
them to unload.

When Philip returned to Madrid in the beginning of 1703, he found
the finances more embarrassed, the people more discontented and
the hostile coalition more formidable than ever. The loss of the