In her he continued on the North American station during the early years of the war of independence, actively co-operating with the army in the embarkation at Boston in March, and in the reduction of New York City in October 1776.
In December Pearl sailed with the fleet under Sir George Rodney, and assisted in the capture of the Caracas convoy; but having sprung her foremast, was ordered home with the prizes.
She was not with the fleet during the battle of the Chesapeake on 5 September, but joined it, still off Cape Henry, on the 14th, and was left to keep watch on the movements of the French till the 25th, when she sailed for New York.
During the Spanish Armament of 1790 Montagu was appointed to HMS Hector (74) and went out to the Leeward Islands in 1793 with Rear Admiral Gardner, and thence to Jamaica, to convoy the homeward-bound trade.
The French commander, Villaret, however, was not inclined to run such a risk, and, after a slight demonstration of chasing him, resumed his course and steered for Brest, while Montagu, after looking for Howe to the north-west, and failing to find him, bore away for the Channel, and on the 12th anchored in Cawsand Bay.
[2] Howe and the Admiralty fully approved of Montagu's conduct; and when, in bad health, rendered worse by the shock of his brother's death during the battle, he applied for permission to resign his command, they both expressed their regret and a hope that his absence might be short.
On 1 January 1801 he was made admiral; but when shortly afterwards he applied for a command, St. Vincent, who had become first lord of the admiralty, replied that he had learned there was "an insuperable bar" to his "being employed in any way".
He refused to say what the bar was; but it would appear to have been some misunderstanding of his conduct in 1794, as it gave way on a perusal of the official letters which Montagu had received at the time, and in 1803 he was appointed Commander-in-Chief, Portsmouth.
[4] He held this post for five and a half years, and in August 1810 was presented with "a superb piece of plate" as "a tribute of respect and esteem" by the captains who had fitted out at Portsmouth during his command.