Before this event took place, a certain party in the state began to think that circumstances would authorise them to commence a gradual change of ministers, and of the policy of the nation. In this his majesty seems to have coincided, for on the same day that he closed the session, Mr. Legge, who was co-partner with Mr. Pitt in popularity, was unceremoniously dismissed from the office of chancellor of the exchequer, and Sir Francis Dashwood nominated his successor. On the same day, also, Lord Holderness having secured a pecuniary indemnification, with the reversion of the wardenship of the cinque ports, resigned the office of secretary of state in favour of Lord Bute. It was said that the king “was tired of having two secretaries, of which one (Pitt) _would_ do nothing, and the other (Holderness) _could_ do nothing; and that he would have a secretary who both could and would act.” At the same time, Lord Halifax was advanced from the board of trade to be Lord-lieutenant of Ireland, and was replaced by Lord Barrington; and the Duke of Richmond, displeased by a military promotion injurious to his brother, resigned his post as lord of the bed-chamber. Other changes, of minor importance, took place--such as the introduction of several Tories into the offices of the court, and there was a considerable addition made to the peerage. These changes were, doubtless, unpalatable to Mr. Pitt; but Horace Walpole says that he was somewhat softened by the offer of the place of cofferer for his brother-in-law, James Grenville. At all events Mr. Pitt continued in office, and Earl Bute consented to leave the management of foreign affairs in his hands; but at the same time, both Bute and his majesty gave him to understand that an end _must_ be put to the war.
Since the accession of George III., the events of the war had been various. Although Frederick the Great had driven the Russians and Austrians from his capital, they were still within his own territory; while the French were on the side of the Rhine, and the Swedes continued to threaten invasions. Such was his situation when he heard that George II, was dead; that his successor was desirous of peace; that some of his advisers were projecting a separate treaty with France; and that it was probable that the English subsidies would soon be discontinued. This intelligence in some degree was confirmed by the tardiness with which the subsidy, so readily granted by the parliament in December, was paid into his treasury. Nothing daunted, however, Frederick planned fresh campaigns, and remonstrated with England; and, as an effect of the bold front he put upon his affairs, he had the satisfaction of learning, before he went into winter-quarters, that the Russians had retired beyond the Vistula, and that the Austrians and Swedes had departed out of Brandenburg, Silesia, and Pomerania. Still his situation was a critical one. His losses in men had been great, his coffers were empty, and his recruiting was therefore difficult: he looked forward to the campaign of 1761 with doubt and anxiety.