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His wise and resolute counsel was rejected. Bute was foremost in opposing it, and was supported by almost the whole Cabinet. Some of the ministers doubted, or affected to doubt, the correctness of Pitt's intelligence; some shrank from the responsibility of advising a course so bold and decided as that which he proposed; some were weary of his ascendency, and were glad to be rid of him on any pretext. One only of his colleagues agreed with him, his brother-in-law, Earl Temple.

Pitt and Temple resigned their offices. To Pitt the young King behaved at parting in the most gracious manner. Pitt, who, proud and fiery everywhere else, was always meek and humble in the closet, was moved even to tears. The King and the favourite urged him to accept some substantial mark of royal gratitude. Would he like to be appointed governor of Canada? A salary of five thousand pounds a year should be annexed to the office. Residence would not be required. It was true that the governor of Canada, as the law then stood, could not be a member of the House of Commons. But a bill should be brought in, authorising Pitt to hold his Government together with a seat in Parliament, and in the preamble should be set forth his claims to the gratitude of his country. Pitt answered, with all delicacy, that his anxieties were rather for his wife and family than for himself, and that nothing would be so acceptable to him as a mark of royal goodness which might be beneficial to those who were dearest to him. The hint was taken. The same Gazette which announced the retirement of the Secretary of State announced also that, in consideration of his great public services, his wife had been created a peeress in her own right, and that a pension of three thousand pounds a year, for three lives, had been bestowed on himself. It was doubtless thought that the rewards and honours conferred on the great minister would have a conciliatory effect on the public mind. Perhaps, too, it was thought that his popularity, which had partly arisen from the contempt which he had always shown for money, would be damaged by a pension; and, indeed, a crowd of libels instantly appeared, in which he was accused of having sold his country. Many of his true friends thought that he would have best consulted the dignity of his character by refusing to accept any pecuniary reward from the Court. Nevertheless, the general opinion of his talents, virtues, and services, remained unaltered. Addresses were presented to him from several large towns. London showed its admiration and affection in a still more marked manner. Soon after his resignation came the Lord Mayor's day. The King and the royal family dined at Guildhall. Pitt was one of the guests. The young Sovereign, seated by his bride in his state coach, received a remarkable lesson. He was scarcely noticed. All eyes were fixed on the fallen minister; all acclamations directed to him. The streets, the balconies, the chimney tops, burst into a roar of delight as his chariot passed by. The ladies waved their handkerchiefs from the windows. The common people clung to the wheels, shook hands with the footmen, and even kissed the horses. Cries of "No Bute!" "No Newcastle salmon!" were mingled with the shouts of "Pitt for ever!" When Pitt entered Guildhall, he was welcomed by loud huzzas and clapping of hands, in which the very magistrates of the city joined. Lord Bute, in the meantime, was hooted and pelted through Cheapside, and would, it was thought, have been in some danger, if he had not taken the precaution of surrounding his carriage with a strong bodyguard of boxers.

Many persons blamed the conduct of Pitt on this occasion as disrespectful to the King. Indeed, Pitt himself afterwards owned that he had done wrong. He was led into this error, as he was afterwards led into more serious errors, by the influence of his turbulent and mischievous brother-in-law, Temple.

The events which immediately followed Pitt's retirement raised his fame higher than ever. War with Spain proved to be, as he had predicted, inevitable. News came from the West Indies that Martinique had been taken by an expedition which he had sent forth. Havanna fell; and it was known that he had planned an attack on Havanna. Manilla capitulated; and it was believed that he had meditated a blow against Manilla. The American fleet, which he had proposed to intercept, had unloaded an immense cargo of bullion in the haven of Cadiz, before Bute could be convinced that the Court of Madrid really entertained hostile intentions.

The session of Parliament which followed Pitt's retirement passed over without any violent storm. Lord Bute took on himself the most prominent part in the House of Lords. He had become Secretary of State, and indeed Prime Minister, without having once opened his lips in public except as an actor. There was, therefore, no small curiosity to know how he would acquit himself. Members of the House of Commons crowded the bar of the Lords, and covered the steps of the throne. It was generally expected that the orator would break down; but his most malicious hearers were forced to own that he had made a better figure than they expected. They, indeed, ridiculed his action as theatrical, and his style as tumid. They were especially amused by the long pauses which, not from hesitation, but from affectation, he made at all the emphatic words, and Charles Townshend cried out, "Minute guns!" The general opinion however was, that, if Bute had been early practised in debate, he might have become an impressive speaker.