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Paris stepped up munitions shipments and in February, 1778, signed a formal treaty with the U.S., becoming a fighting ally. For the entire war the French provided loans that totaled 35 million livres ($6,352,000),<ref>The U.S. paid France back the entire amount in 1792-95.</ref> and subsidies of 10.5 million livres, ($1,996,500), which were gifts. In 1779 Paris brought Spain into the new anti-British alliance; Spain was not directly an ally of the U.S. The Netherlands joined the military alliance, and helped fund the Americans.  
 
Paris stepped up munitions shipments and in February, 1778, signed a formal treaty with the U.S., becoming a fighting ally. For the entire war the French provided loans that totaled 35 million livres ($6,352,000),<ref>The U.S. paid France back the entire amount in 1792-95.</ref> and subsidies of 10.5 million livres, ($1,996,500), which were gifts. In 1779 Paris brought Spain into the new anti-British alliance; Spain was not directly an ally of the U.S. The Netherlands joined the military alliance, and helped fund the Americans.  
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Paris acted in part out of revenge at the loss of Canada in the Seven Years War (1763), and even more for practical geopolitical and commercial goals. Independence for the American colonies meant that France's historic adversary would lose the richest, fastest growing, and most strategically located colonies in the world. Indeed, they would become French allies, permanently tilting the balance of power in the North Atlantic and the flow of trade. Holland joined with France, as did Spain. Madrid had only one interest, the return of Gibraltar, which Britain had captured in 1704. Spain offered to join Britain in the war if it could get Gibraltar; when London refused, she joined the allies. (In the end, Britain kept Gibraltar and returned Florida to the Spanish.) In a stunning failure of diplomacy, Britain was unable to sign up any allies anywhere on the globe, and most neutrals even took hostile positions. This was a world war, but Continental Europe was controlled by the enemy or neutral. Britain would have to fight its war at sea, and the land battles in North America assumed minor importance in the large picture.  
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Paris acted in part out of revenge at the loss of Canada in the Seven Years War (1763), and even more for practical geopolitical and commercial goals. Independence for the American colonies meant that France's historic adversary would lose the richest, fastest growing, and most strategically located colonies in the world. Indeed, they would become French allies, permanently tilting the balance of power in the North Atlantic and the flow of trade. France intervened because of dispassionate calculation, not because of Anglophobia or a desire to avenge the loss of Canada. French participation reflected the desperate French diplomatic position on the European continent. The war was a tragic failure for France: American independence failed to weaken Britain. The Battle of Saratoga provided the publicity France needed to announce a policy that had already been decided.  France was desperate for peace in 1781-83 but did not attempt to betray the United States. The French government was overwhelmed by debt maintenance, but war led to the financial crisis which provided the immediate occasion for the release of those forces which shattered the French political and social order.  
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Holland joined with France, as did Spain. Madrid had only one interest, the return of Gibraltar, which Britain had captured in 1704. Spain offered to join Britain in the war if it could get Gibraltar; when London refused, she joined the allies. The Spanish navy was vital to the maintenance of the allies' military initiative. (In the end, Britain kept Gibraltar and returned Florida to the Spanish.)
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In a stunning failure of diplomacy, Britain was unable to sign up any allies anywhere on the globe, and most neutrals even took hostile positions. This was a world war, but Continental Europe was controlled by the enemy or neutral. Britain would have to fight its war at sea, and the land battles in North America assumed minor importance in the large picture.
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====British perspectives====
 
Britain now was outnumbered in population and wealth, and worst of all, outgunned on the seas by an aggregate of 120 ships of the line to 90. The potential threat of the French fleet forced Clinton (now commander in chief) to evacuate Philadelphia in June, 1778. Yankees threatened his rear guard at Monmouth, but Clinton made good his escape to New York City. The Americans were lucky to get a draw at [[Monmouth, battle of|Monmouth]]. Their commander, the brilliant, experienced and erratic [[Charles Lee]] had lost control of the situation and had to be rescued by Washington. Lee complained bitterly, sought a court martial, was convicted and disgraced. (Decades later it was discovered that before Monmouth Lee had become a traitor who gave Howe a comprehensive plan to defeat Washington.) Monmouth was the last major battle in the North; for the next three years Washington positioned his army to make sure Clinton stayed in New York City. Washington never could talk the French into a joint attack on the well-defended city. The bulk of Royal Navy had to be stationed near England to defend against a possible French-Spanish invasion. (The invasion was threatened twice, but never took place.) The alliance involved risks for the allies: Britain might well defeat their navies separately and capture one of the French West Indies, or French holdings in India. Eventually Britain did accomplish all that. Furthermore, Paris had a poor financial systems; the war bankrupted the treasury, weakened the monarchy, and hastened the French Revolution in 1789. What did the new allies contribute to the American cause? The Spanish, operating from New Orleans, cleared the redcoats out of the lower Mississippi Valley, seizing Mobile on the Gulf Coast, Pensacola (in British West Florida) and the Bahama islands. They also blockaded Gibraltar. These actions diverted British resources, and helped neutralize the pro-British Indians who were attacking patriot settlements along the Carolina-Georgia frontier.  
 
Britain now was outnumbered in population and wealth, and worst of all, outgunned on the seas by an aggregate of 120 ships of the line to 90. The potential threat of the French fleet forced Clinton (now commander in chief) to evacuate Philadelphia in June, 1778. Yankees threatened his rear guard at Monmouth, but Clinton made good his escape to New York City. The Americans were lucky to get a draw at [[Monmouth, battle of|Monmouth]]. Their commander, the brilliant, experienced and erratic [[Charles Lee]] had lost control of the situation and had to be rescued by Washington. Lee complained bitterly, sought a court martial, was convicted and disgraced. (Decades later it was discovered that before Monmouth Lee had become a traitor who gave Howe a comprehensive plan to defeat Washington.) Monmouth was the last major battle in the North; for the next three years Washington positioned his army to make sure Clinton stayed in New York City. Washington never could talk the French into a joint attack on the well-defended city. The bulk of Royal Navy had to be stationed near England to defend against a possible French-Spanish invasion. (The invasion was threatened twice, but never took place.) The alliance involved risks for the allies: Britain might well defeat their navies separately and capture one of the French West Indies, or French holdings in India. Eventually Britain did accomplish all that. Furthermore, Paris had a poor financial systems; the war bankrupted the treasury, weakened the monarchy, and hastened the French Revolution in 1789. What did the new allies contribute to the American cause? The Spanish, operating from New Orleans, cleared the redcoats out of the lower Mississippi Valley, seizing Mobile on the Gulf Coast, Pensacola (in British West Florida) and the Bahama islands. They also blockaded Gibraltar. These actions diverted British resources, and helped neutralize the pro-British Indians who were attacking patriot settlements along the Carolina-Georgia frontier.  
  
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