anywhere in the world. The British largely abandoned their indigenous allies, who were not a party to this treaty and did not recognize it until they were defeated militarily by the United States. However, the British did sell them munitions and maintain forts in American territory until the Jay Treaty of 1795. Losing the war and the Thirteen Colonies was a shock to Britain. The war revealed the limitations of Britain's fiscal-military state when they discovered that they suddenly faced powerful enemies with no allies, and they were dependent on extended and vulnerable transatlantic lines of communication. The defeat heightened dissension and escalated political antagonism to the King's ministers. The King went so far as to draft letters of abdication, although they were never delivered. Inside Parliament, the primary concern changed from fears of an over-mighty monarch to the issues of representation, parliamentary reform, and government retrenchment. Reformers sought to destroy what they saw as widespread institutional corruption, and the result was a crisis from 1776 to 1783. The crisis ended after 1784 confidence in the British constitution was restored during the administration of Prime Minister William Pitt. Finance Britain's war against the Americans, the French, and the Spanish cost about £100 million, and the Treasury borrowed 40 percent of the money that it needed. Heavy spending brought France to the verge of bankruptcy and revolution, while the British had relatively little difficulty financing their war, keeping their suppliers and soldiers paid, and hiring tens of thousands of German soldiers. Britain had a sophisticated financial system based on the wealth of thousands of landowners who supported the government, together with banks and financiers in London. The British tax system collected about 12 percent of the GDP in taxes during the 1770s. In sharp contrast, Congress and the American states had no end of difficulty financing the war. In 1775, there was at most 12 million dollars in gold in the colonies, not nearly enough to cover current transactions, let alone finance a major war. The British made the situation much worse by imposing a tight blockade on every American port, which cut off almost all imports and exports. One partial solution was to rely on volunteer support from militiamen and donations from patriotic citizens. Another was to delay actual payments, pay soldiers and suppliers in depreciated currency, and promise that it would be made good after the war. Indeed, the