The Diplomatic Correspondence of the American Revolution, Vol. 01

THE CORRESPONDENCE OF SILAS DEANE. (continued 3)

Reading edition

Paris, 10th September, 1777.

Gentlemen,

This will be handed you by M. Francy, who is agent for Messrs Rodrique Hortalez & Co.[9] You will see by the bills of lading, the quantity of stores shipped by that house, and make some judgment of their considerable amount. The vessel, in which M. Francy sails, is loaded with stores, which were long since engaged, but by a succession of obstacles have been until this detained. I still hope they will arrive in safety, and in season to be of service. The ship will be offered you to purchase, if she suits you, and if not, it will be equally agreeable to have her returned on the owners' account. I could not say any thing of purchasing a ship, without knowing more of her than I could know of this; I have therefore left it to your option to pay the price demanded, or the freight; the latter is to be what is at this time customary in vessels of such force, which not being precisely fixed, is submitted to M. Chaumont, by the advice and consent of my colleagues; it will probably be about two hundred and fifty livres per ton of goods to America, and back to France; it will not exceed that.

Messrs Rodrique Hortalez & Co. have other vessels, which will follow this in a short time, which they want to have despatched with tobacco, agreeably to what they formerly wrote you, and M. Francy goes partly on that account; I must therefore pray you to furnish him with the means of procuring the quantity he will want for them in season. The cargo of the Therese, sent by the way of St Domingo, I hope is by this time arrived; it was so valuable that it was thought most prudent to send it by that route, as it would run no risk in getting there, whence it might in different bottoms be got into the Continent, without the considerable risk of going direct. As the vessels of Messrs Hortalez & Co. will arrive at a time when despatch will be of the utmost consequence, they are desirous to have their cargoes ready on their arrival. By these vessels I will write you particularly on this subject, and in the meantime, have the honor to be, with the greatest respect, &c.

SILAS DEANE.

FOOTNOTES:

TO ROBERT MORRIS.

Paris, 23d September, 1777.

Dear Sir,

As many of the commissioners' letters may have failed, I take the liberty of enclosing an extract of a letter written jointly by Dr Franklin and myself in March last, in which we sent an extract of a letter from Mr Lee, who had been at Nantes, and was then at Bordeaux. This letter was to the committee, and consequently to Congress. We wrote one also previous to this, to the committee, just before Mr Lee's going to Nantes.

I am informed that it is insinuated, that interested and private views influenced me to write as I did,[10] and that the fixing Mr Williams at Nantes was the object I had in view. I am very sorry you should be so imposed upon; the consequences must ultimately be more prejudicial to yourself than to any other person. In the meantime, as a man of honor, I assure you I have neither interest or connexion in Mr Williams' business, nor have I engaged in the smallest private concern, except what you have been acquainted with, and which you know was in consequence of your letters in June, 1776.

Mr Williams came to France to visit Dr Franklin; he was in a good way of business in London, where he was entering into business with a capital house in the sugar business. England was disagreeable to him, solely on account of the animosities, which prevailed among individuals on account of the public quarrel. The stores which I had engaged, and which were sent out in the Mercury and Therese, were at Nantes, where matters had been so conducted that you must suppose I had no confidence in the managers. On this occasion I applied to Mr Williams, as a friend, to make a journey to Nantes, to examine the goods and see them shipped. He left Paris without intending to tarry longer than to perform this business. But his conduct at Nantes was so much the reverse of what had preceded, that every one who wished well to our affairs desired that he might be continued there. I needed no solicitations; the interest of my country was my sole motive; I knew he served it faithfully, and I knew him to be generous and disinterested in the service. Yes sir, disinterested; and you will acknowledge it when you are informed, that what he exacted of us was barely a sufficiency to support him, not amounting to one fourth of one per cent on the business. He has, if I am to have the credit of fixing him there, done me great honor; he has, at the same time, obtained the good opinion and friendship of the capital persons at Nantes. I am thus particular on this subject, as I am well convinced it has been represented to you very differently. How it has been represented I know not, nor am I likely to be informed but from second hand, from your brother's showing your letter directed to me to Mr Ross, and telling some others what were its contents, and that you not only justified his conduct, but had obtained for him more ample appointments, with severe reprimands to me, and even oblique censure on Dr Franklin, who happens to be Mr Williams' uncle.

It is hard for me, acting as I have done, from the most disinterested motives, and from those principles of friendship which shall be ever sacred with me, to be thus censured by you unheard.

Mr Ross does justice to the character you gave of him. I expect to see him in Paris in a few days, when I shall show him what I now write you.

I have not the least desire of intermeddling in the commercial concerns of the Congress in Europe, nor of going out of my own department, whatever it may be, on any occasion; but I have been obliged to take much upon my hands in procuring supplies of clothing, &c. as have also my colleagues, on account of the unhappy situation of our affairs here as to commerce. I will not add to a letter already long, only that if I have been mistaken in any thing, you will reflect that I write in reply to a part of one of yours, which I am unable to procure a sight of, and assure you that no private concern affects me more, than having drawn on myself your resentment by my desire of serving you. Be assured that I retain the highest esteem and respect for you in your public as well as private character, and am your sincere friend, &c.

SILAS DEANE.

FOOTNOTES:

COMMITTEE OF FOREIGN AFFAIRS TO SILAS DEANE.

York, in Pennsylvania, 4th December, 1777.

Sir,

In compliance with the order of Congress, we now enclose you their resolve of November 21st last; a duplicate goes by another opportunity. We are, Sir, &c.

R. H. LEE, J. LOVELL.

JAMES LOVELL TO SILAS DEANE.

York, 8th December, 1777.

Sir,

By accident I find myself called upon singly to execute the duty of the committee of foreign affairs, in communicating to you an order of Congress, of this day, respecting your return to America.

The order stands in need of no comment from the committee to elucidate it;[11] and being drawn up in terms complimentary to your abilities of serving these United States upon your arrival here, I take pleasure in conveying it, being, sir, your very humble servant,

JAMES LOVELL.

FOOTNOTES:

FROM COUNT DE VERGENNES TO THE PRESIDENT OF CONGRESS.

Translation.

Versailles, the 25th March, 1778.

Sir,

Mr Deane being about to return to America, I embrace the occasion with pleasure to give my testimony to the zeal, activity, and intelligence with which he has conducted the interests of the United States, by which he has merited the esteem of the king my master, and for which his Majesty has been pleased to give him marks of his satisfaction. Mr Deane will be able to inform Congress of the disposition of the king towards the United States. The engagements formed with his Majesty, will doubtless satisfy their wishes; the king on his part is not only convinced, that they are founded on principles unalterable, but also that they will contribute to the happiness of both nations.

I have the honor to be, &c.

DE VERGENNES.

FROM COUNT DE VERGENNES TO SILAS DEANE.

Translation.

Versailles, 26th March, 1778.

As I am not, Sir, to have the honor of seeing you again before your departure, I pray you to receive here my wishes, that your voyage may be short and happy, and that you may find in your own country the same sentiments, which you have inspired in France. You need not, Sir, desire any addition to those which I have devoted to you, and which I shall preserve for you to the end of my life; they will be sureties to you of the true interest, which I shall forever take in your happiness, as well as in the prosperity of your country.

The king, desirous of giving you a personal testimony of the satisfaction he has in your conduct, has charged me to communicate it to the President of the Congress of the United States. This is the object of the letter, which Mr Gerard will deliver you for Mr Hancock. He will also deliver you a box with the king's portrait. You will not, I presume, Sir, refuse to carry to your country the image of its most zealous friend. The proof of this is in facts.

I have the honor to be, with the most sincere consideration, &c.

DE VERGENNES.

FROM DR FRANKLIN TO THE PRESIDENT OF CONGRESS.

Passy, near Paris, 31st March, 1778.

Sir,

My colleague, Mr Deane, being recalled by Congress, and no reasons given that have yet appeared here, it is apprehended to be the effect of some misrepresentations from an enemy or two at Paris and at Nantes. I have no doubt, that he will be able clearly to justify himself; but having lived intimately with him now fifteen months, the greatest part of the time in the same house, and been a constant witness of his public conduct, I cannot omit giving this testimony, though unasked, in his behalf, that I esteem him a faithful, active, and able minister, who, to my knowledge, has done in various ways great and important services to his country, whose interests I wish may always, by every one in her employ, be as much and as effectually promoted.

With my dutiful respects to the Congress, I have the honor to be, &c.

B. FRANKLIN.

TO THE PRESIDENT OF CONGRESS.

Delaware Bay, 10th July, 1778.

Sir,

I have now the pleasure of acquainting your Excellency of my arrival here yesterday, on board the Languedoc, commanded by his Excellency Count d'Estaing, with a fleet of twelve sail of the line, and four frigates. We sailed from Toulon the 10th of April last. I presume therefore that I have no intelligence from Europe so late as what you must be possessed of already. Finding that the enemy had escaped, the Admiral resolved instantly to pursue them to New York, and will sail this morning for that port, but he has no pilot. If, therefore, pilots can be sent to meet him on his arrival, it will be of the utmost service to the expedition. I shall embark this afternoon in company with his Excellency, Mons. Gerard, for Philadelphia, and hope soon to have the honor of paying my respects to your Excellency and the honorable Congress in person, and to congratulate you on the late glorious events. I have sent Commodore Nicholson express, who can inform you of our situation. Permit me to recommend him as an active, spirited officer, to whom the Admiral has been much obliged by his services during our passage.

I have the honor to be, with the most profound respect, your Excellency's most obedient, and very humble servant,

SILAS DEANE.

P. S. His Excellency the Admiral desires, that on the arrival of the pilots at the Hook, where they will find his fleet, they would make a signal with a white flag, either on board their boat, if they have one, or from the shore, formed in a triangle. Mons. Chouen, who will wait on you with a letter from the Admiral, sets out suddenly, and may want money to bear his expenses on his further journey. Mons. Gerard desires he may be supplied on his account, with any sum to the amount of twenty thousand livres.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 28th July, 1778.

Sir,

I had the honor of receiving on the 4th of March last, in a letter from Mr Lovell, (a copy of which I now enclose,[12]) the orders of Congress, announcing my recall, and directing my immediate return.

Sir,

In consequence of my letter of the 24th ult. I had the honor of receiving the order of Congress of the 26th, directing me to attend on the 29th, at three o'clock in the afternoon, that day being assigned for my being heard; I was at the same time favored with extracts from Mr Izard's letters.[13] On the 29th, I was served with an order of Congress, which postponed my being heard to some future time. On the 3d instant an extract of a letter from the honorable Arthur Lee, dated Paris, June 1st, 1778, was given me by order of Congress. I have for some time past waited with the greatest impatience for an opportunity of being heard before that honorable body, confident that my peculiar situation will excuse my impatience. I must, without repeating what I have already had the honor of writing to you, once more urge for as early an audience as the important business before Congress will admit of.

I have the honor to be, &c.

SILAS DEANE.

FOOTNOTES:

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 12th October, 1778.

Sir,

I received your letter of the 7th instant, in which you informed me, that mine of the same date to you was by Congress ordered to lie on the table, until the examination of Mr Carmichael should be finished.

Though totally unable even to conjecture, what relation the examination of that gentleman can possibly have to those abusive and injurious letters, written by Mr Izard and Mr Lee, yet, as I had so often troubled Congress during a three months' attendance, with my repeated solicitations to be heard, I forbore repeating them until neither my health, my interest, nor my honor will permit me a much longer stay in America; I have, therefore, taken the liberty of enclosing my answers to the letters of those gentlemen. It pains me to be obliged to answer at all, and it grieves me exceedingly to be deprived of the opportunity of doing it in person; I still hope to be indulged before leaving America. I have only further to inform Congress, that I shall go into the country tomorrow, for a few days, that having engaged a passage in a ship, which will sail for France sometime next month, I propose to leave Philadelphia in a few days after I return from the country, in order to embark, and shall esteem myself honored by Congress if they have any thing further in which I may be of service to my country, if they will favor me with their commands.

I have the honor to remain, &c.

SILAS DEANE.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 12th October, 1778.

Sir,

In the extracts from the letters of the honorable Mr Izard, I find charges which respect me, supported by his opinions, and by what he declares to have heard from the honorable Arthur Lee, who, by his own account, is my irreconcilable enemy. I find also charges against the honorable Dr Franklin and myself jointly, supported on the same grounds, with this difference, that almost every complaint against us lies equally against Mr Lee, and it is worthy of remark, that where the charge lies equally against us all, Mr Izard leaves Mr Lee wholly out, and fixing it solely on Dr Franklin and myself, proceeds to represent the Doctor as entirely under my influence. My situation has, through the whole been peculiarly unfortunate, and in nothing more so than in this, that Mr Izard's letters, written as much with the design of impeaching Dr Franklin's conduct as mine, now operates solely against me.

Mr Izard says, in his letter of the first of April, "That if the whole world had been searched, it would have been impossible to have found a person more unfit than I was for the trust, with which Congress had honored me." It does not become me, and possibly not even Mr Izard himself, to determine on my competency to that trust, and I have only to observe, that both of us were appointed by the authority of Congress, with this only difference, that I had the honor of being personally known to the members who composed that body, and I can add with pleasure, that I always paid respect to Mr Izard from the choice they had made of him, which I doubt not was on good information. I shall feel no uneasiness on my own account, that Mr Izard's opinions of me remain on the journals of Congress, whilst on the same records there will be found that of his Most Christian Majesty, of his Minister, and Secretary of State, and of my venerable colleague, revered through Europe as the first of patriots, as well as philosophers, whom this age has produced. I find but two charges which respect me personally; the first is, the exercising such a degree of hauteur and presumption as to give offence to every gentleman with whom I transacted business. I transacted none with Mr Izard, and therefore must appeal from his opinion to the business I transacted, and the worthy and honorable persons with whom I transacted it, and who, from the first of my acquaintance with them to my leaving the kingdom, honored me with their friendship and their confidence. I desire it may be remembered, that, when I went abroad, charged with the transaction of political and commercial business for Congress, in the year 1776, I arrived at Paris as late in the season as the month of July, without funds, uncertain of remittances, without credit, ignorant of the language and manners of France, and an utter stranger to the persons in power and influence at Court; that I had not the patronage of any person of importance, and had no correspondence or connexions established in any part of Europe. The news of our misfortunes in Canada arrived in France with me, and that of our subsequent misfortunes immediately after, and was, as usual, exaggerated by the British Ambassador and his emissaries. In a word, without remittances, or even intelligence from Congress, and under all these disagreeable circumstances, I had to oppose the artifice, the influence, and the power of Great Britain; yet I have the pleasing reflection that before the first of December following, I procured thirty thousand stand of arms, thirty thousand suits of clothes, more than two hundred and fifty pieces of brass artillery, tents, and other stores to a large amount, provided the ships to transport them, and shipped a great part of them for America. Many of these supplies fortunately arrived at the commencement of the last year's operations, and enabled my brave countrymen, in some parts of America, to make a good stand against the enemy, and in the north to acquire immortal renown by the defeat and surrender of General Burgoyne and his whole army, an event peculiarly fortunate in its consequences, as it accelerated the completion of that alliance, to which the honorable Congress, with every true friend to the United States, have given their approbation. During this short period I had established a very extensive correspondence for the service of my country, not only in France but in Holland, at the Court of Russia, and elsewhere in Europe; and though the grant of money by the Court of Versailles was not at this time actually made, I had entered upon the negotiation and laid the foundation for obtaining it. These facts, without mentioning others of no less importance, will shew what business I transacted; and the character given me by those great personages, with whom I was in my public character connected, will evince the degree of reputation in which I stood. It is my misfortune that Mr Izard was of a different opinion.

The second charge is, that Mr Arthur Lee had assured him, that his despatches to Congress, and even one of his private letters had been opened by me. I am surprised Mr Arthur Lee never intimated this to me, and that he should communicate it to Mr Izard, to be reported in this manner. I think it however sufficient for me to say here, what I shall say elsewhere, and on all occasions, that this is a groundless calumny, which I should not have expected, even from an enemy, at least not from a candid or generous one.

Mr Izard complains that Dr Franklin and myself concealed from him, or attempted to conceal the opportunities of writing to America, as well as the intelligence received from thence. In reply to this, it need only be observed, that no packets or letters were sent by the commissioners to America and to Congress, without the knowledge and consent of Mr Arthur Lee, and no intelligence received to which he was not privy. That he was often with Mr Izard, and therefore it was naturally to be supposed would give him every necessary information; if Mr Lee did not acquaint Mr Izard, he is at least equally culpable with us, and if he did, there is no ground for the complaint. It is true, that neither Dr Franklin nor myself considered ourselves at liberty to communicate the treaty or its contents, until the consent of the Court should be had; we considered ourselves in the same situation as to the appointment of Mons. Gerard, and the sailing of the Toulon fleet. Mr Izard appears, however, to have been well informed of the former at least, and that very early, and of the latter on the day of our leaving Paris. Mr Arthur Lee knew of it sometime before, as he wrote many letters by his Excellency Mons. Gerard. In justice, therefore, the complaint ought not to have been made solely against Dr Franklin and Mr Deane, and particularly against the latter.

Mr Izard represents that there were dissensions and misunderstandings between the commissioners at Paris. It is true. He is of opinion that the interest of the public suffered by it, but in this he is mistaken, as the treaty itself and all our other public transactions will demonstrate. Mr Izard is of opinion that France might have been brought to have taken an active part much earlier. If circumstances, not in our power, had taken place earlier, they possibly might; but even in that case they would have done it under great disadvantages, as is evident from the representation I made to Congress when I had the honor of being heard on the 19th of August last. As the 11th and 12th articles of the treaty are complained of, and as this subject immediately interests the public, I have drawn up a concise narration of the whole of that transaction and have communicated it to his Excellency Mons. Gerard, who agrees to the truth of every part thereof, which has come to his knowledge. This I beg leave to present to Congress, as it will show that Mr Izard had not the best information, and that neither Dr Franklin or myself (though "born in New England") procured the insertion of those articles; it will further show that the Court of France never urged it, but on the contrary left us perfectly free to have them both inserted or both omitted. It will also appear, that Mr Lee himself wrote and signed the letter, desiring they might be inserted, and that he afterwards had a private conference with M. Gerard on the subject, and appeared perfectly satisfied. If any doubts arise on this subject, I shall be happy to refer for satisfaction on that head to Mons. Gerard, and also for what passed between Mr Lee and himself on the occasion, as well as for the pretended verbal promise that the article should be expunged if objected to by Congress. I have signed that narration, and shall sign these observations in which I have avoided taking those advantages of Mr Izard, which the passionate and partial complexion of his letters has given me, were I disposed to make use of them; because, I conceive it to be an abuse, if not an insult to trouble Congress with any thing merely personal, though I have provocation sufficient to justify me in the eyes of the world, and am by no means deficient in materials.

I recollect perfectly well the interview at Passy with Mr William Lee, at which Mr Izard was present, but I do not remember that any such letter as he describes was either desired or refused. I rather think that Mr Izard misunderstood Dr Franklin at the time, or that his memory has deceived him. The facts are these. The late Mr Thomas Morris had a commission to act as commercial agent; his commission was entirely distinct from, and independent of, the commissioners; he at least construed it so himself from the beginning. We were very early informed of his irregularities, and admonished him, and advertised Congress of them. As we could get no account of the disposition of the prizes brought into France, and the expense of repairing and equipping the vessels of war fell on the commissioners, Dr Franklin and myself (Mr A. Lee being then at Berlin) deputed Mr Williams to take the care of the prizes into his own hands, and ordered the Captains to account with him. On Mr William Lee's arrival at Nantes he joined with Mr Morris in writing a severe letter to the commissioners on what they had done, in which they complained, that the office or department of commercial Agent was broken in upon, and that we had no power over it. Dr Franklin, at the desire of Mr A. Lee and myself prepared an answer, in which the reason of our orders was given, and Mr Morris' conduct urged as our principal motive, but that as he, Mr William Lee, was there, we would recall our commission from Mr Williams. Mr Arthur Lee would not agree to the form of the letter, and after much dispute upon it, a second was written, when Mr Arthur Lee observed, that his brother was coming to Paris soon to receive his commission for Vienna and Berlin, and as there were then no prizes in port, or expected, the matter might rest. This was the reason why Mr W. Lee's letters were not answered. He came to Paris soon after, and represented the confused state in which affairs were at Nantes, and urged the interposition of the commissioners to put the whole agency into his hands. The situation of Mr William Lee at that time was precisely this; he had never received any commission either from Congress or their committee for the commercial agency, whilst Mr Thomas Morris was, and had been in the possession of a commission, and in the exercise of the agency.

Congress had made Mr William Lee their commissioner to the courts of Vienna and Berlin, each of which places is at least a thousand miles from the scenes of our commerce, without saying anything about his former appointment, from which it was natural to suppose his former appointment had been considered as superceded by the new. We had received intelligence, that the information we had given of Mr Morris's conduct, had been received and read in Congress, and that Congress notwithstanding chose to continue him in this situation. We thought it very extraordinary that we should be applied to, to interfere where Congress, knowing the facts, had declined to interfere, and still more so, that we should be requested to put (what indeed was not in our power) the commercial agency into the hands of a gentleman, who must execute it by deputies; himself at a distance too great either to see or correct the abuses that might be practised. The letter referred to by Mr Izard was a letter to this purpose, and I remember well (for I avoided bearing any considerable part in the conversation) Doctor Franklin's reply, which was to this purpose, that Congress by disregarding the information we had given, and continuing Mr Morris, had impliedly censured our conduct. That Mr Morris had treated us ill personally for what we had done, and that Mr William Lee ought to remember, that he had himself jointly with Mr Morris complained of our interfering as he thought in that department; and therefore he did not incline to subject himself to any further censures, or as he expressed it "raps over the knuckles" for meddling in the affair. We were indeed as much surprised as Mr Izard appears to have been on the occasion, but our surprise arose from another cause; it was to find Mr William Lee desirous of holding such a plurality of appointments, in their own nature incompatible with each other, and impossible to have been executed by the same person. But as one of the places was supposed to be a lucrative one, the subject was too delicate to be touched on by us.

Mr Izard says that Mr William Lee complained that parties had been excited against him at Nantes, and that so far from having been supported by the commissioners in the execution of his duty, these gentlemen had as much as possible contributed to perplex him in the discharge of it; that he had frequently written, &c. His letters have been taken notice of already, and the reason mentioned why they were not answered. The rest of this complaint is, as far as I know anything about the matter, totally groundless; it must appear so to every one acquainted with the following particulars. Mr William Lee never had a commission to the commercial agency, though he is now executing it by his agents. Mr Lee's caution was such, that he never even answered my letters to him in February or March, informing him that Mr Robert Morris had written to me, that he was appointed; nor did I learn anything from him of his intentions, until he arrived at Paris the summer following, where also he acted with the greatest caution, while he waited the return of his brother from Berlin. Before and after his being at Nantes, he went so far as even to desire Mr Williams and others at Paris and at Nantes not to let it be known, that he had anything to do in American affairs, as he said it would greatly prejudice his interest in London; and so far was he from ever executing, or publicly attempting to execute, that agency, until after the news of General Burgoyne's defeat had arrived in France, that he did nothing that ever I heard of, which could have prevented his returning to the exercise of his Aldermanship in London.

Mr Izard is pleased to say, that "to let Mons. Gerard go away without giving him the least intimation of it, was a very high insult to Congress." It was not in our power to permit or prevent Mons. Gerard's going away, and if we did not, circumstanced as we then were, think ourselves authorised to communicate it to Mr Izard, I cannot conceive this to be a high insult to Congress; certain it is, we meant no such thing; we meant to serve, not insult that honorable body. "The object," he says, "of these gentlemen is to have Mr Deane come back in a public character, if not to France, perhaps to Holland, or some other part of Europe, and therefore they are afraid of having reasons given why this should not be the case." And he adds, "I am of opinion that he is upon every account an improper person to be employed by Congress." I have already appealed from this gentleman's opinions, so I shall say nothing further about them; his reasons, if he offers any, are to be judged of by Congress. I find, however, he had more apprehensions than reasons in this part of his letter; his apprehensions as well as opinions were in part at least groundless; he was apprehensive lest my venerable colleague would solicit some appointment for me; I do not learn that he has done it, I never desired or expected that he would. Mr Izard, I presume, knew that I had a very extensive correspondence with gentlemen of the mercantile and monied interest and character in Europe, but particularly in Holland, where I had long before been preparing the minds of such men in favor of a loan. He knew that there was not merely a correspondence, but a strict personal friendship subsisting between certain gentlemen in Amsterdam and at the Hague and myself, and that I had proposed to go there on the subject of the loan, as well as for other purposes. I presume also he knew, that the French Ambassador in Holland, the Duke de Vauguyson, who spent last winter in Paris, honored me with his acquaintance, and with all the politeness as well as zeal for the interest of the United States of North America, which make part of that nobleman's character, urged me to go there, assuring me of every personal service and civility, which should be in his power. My recall prevented the execution of the plan, and Mr Izard doubtless apprehended that I should solicit for the appointment. His apprehension was groundless; the honorable Congress know that I have not solicited for any appointment; my life and fortune, with what abilities I am blessed with, have been from the first, and will ever be devoted to the service of my country, who are most certainly the best judges in what department they can be most useful; or if they can be of any use at all, and to their judgment I most cheerfully submit.

I have the honor to be,

With the most respectful attachment, &c.

SILAS DEANE.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 12th October, 1778.

Sir,

I beg leave to lay before Congress a few observations on the extracts from Mr Arthur Lee's letter, dated Paris, June 1st, 1778, read in Congress the 3d instant, which were ordered to be communicated to me. Mr Lee begins by saying that, "M. Monthieu's papers were sent to show you the demands that are made upon us, and the grounds of them; you will see that they are accounts, which Mr Deane ought to have settled."

Not having seen the accounts or papers said to have been sent, I can only reply generally by informing Congress, that I contracted with M. Monthieu (nearly at the time that I contracted with Mons. Beaumarchais for the stores) to procure ships to transport them over to America;[14] the rate, I was told in Paris and elsewhere, was as low as could be then procured in France; it has risen since that time. The ships were to have been despatched in a reasonable time to and from America. Mons. Beaumarchais was my surety. The difficulty met with in getting away the stores was such, that the last of the ships did not sail from Marseilles until in September, 1777. The delay of near twelve months of some of them in France, and an uncommon delay of all of them, occasioned by repeated counter orders, and fresh obstacles rising in the way of embarking those stores, as well as the unexpected detention of those ships in America, as for instance, of the Amphitrite, from April until the October following, with the capture of them, were circumstances unforeseen and unexpected at the time of making the contract, and entitled M. Monthieu to an equitable consideration over and above the freight stipulated. Before the last ship sailed, therefore, M. Monthieu insisted that some mode for a settlement should be agreed upon; on which Dr Franklin and myself agreed with him to submit the whole to Mons. Chaumont; the submission was made and signed. M. Monthieu, on his return from Marseilles, (to which place he went immediately to embark and send off the remainder of the stores) urged M. Chaumont to undertake it. I did the same; he declined, telling me that he found Mr Lee of so jealous and unquiet a disposition, and so much disposed to abuse every one that he had any concerns with, that he had well nigh resolved never to have any thing more to do with the commissioners, while he was one of them; but as M. Monthieu had other concerns with the commissioners, he thought it best to settle the whole at once, and when the whole was ready for a settlement, if Mr Lee would then desire him to undertake it, he would do it as well to oblige us as M. Monthieu, for whom he had a regard. This put off the settlement for the time.

Mr Lee proceeds to say, "It is this sort of neglect, and studied confusion, that has prevented Mr Adams and myself, after a tedious examination of the papers left with Dr Franklin, from getting any satisfaction as to the expenditures of the public money. All we can find is, that millions have been expended, and almost every thing remains to be paid for."

I am not surprised at any thing of this kind from Mr Lee, nor that Mr John Adams has not joined with him in this letter, though I dare say, that gentleman knows his duty, and has done it, as well to the public as to me. After premising that Mr Lee had in his hands the accounts of all the monies received and paid out on the public account, I will lay before Congress the facts, which he had before him when he wrote this letter, after which Congress will be able to judge whether Mr Lee had any grounds for his representing me as a public defaulter for millions. It is certain, that Mr Lee knew that the total amount of monies received by the commissioners to the time of my leaving Paris,

amounted to (livres) 3,753,250

And that the balance due Mr Grand, the 27th March, was 293,738 17

And that the whole expenditures to that day consequently was (livres) 4,046,988 17

In the next place, it will appear, that by much the greater part of this was actually expended and paid out by and with Mr Lee's consent and orders at the time; the whole was well known to him, as he had, from time to time, access to Mr Grand's books, and Mr Grand delivered him copies thereof up to the 27th of March last, by which he had before him an account of every payment that had been made, and I sent him in writing an explanation of every payment that had been made in his absence, or which had not been made by his written order.

The accounts of the particular articles in detail, not being here, I am unable to explain every charge in Mr Grand's account. It is sufficient that Mr Grand's account shows, that the nature of nearly the whole of the expenditures was perfectly well known to Mr Lee, when he wrote the above account of millions expended, and represented he knew not how to show this. I have stated Mr Grand's account in a shorter compass than what it was before, and have brought the different payments for particular objects made to different people into one view, as will be seen in the annexed state or explanation of Mr Grand's account.

I have no design in answering this part of Mr Lee's letter to go farther into the accounts than to show demonstratively, that nothing can be more groundless and unjust, than for him to represent that millions had been profusely expended, and as if he knew not in what manner or to what purpose. The amount of expenditures, until the time of my leaving Paris, was 4,046,988 17 livres, and it appears, as well from the nature of the account, as from the knowledge Mr Lee had of the transactions, that he knew generally of the payment of every livre, and to whom it had been made, having the accounts and the explanation of them in his hands, up to the very day I set out from Paris. The particular application, indeed, of every part, could not be known until the several accounts should be given in. Mr Lee himself signed the orders for much the greater part of the monies to Mr Williams, and the other principal payments, and was well informed of the business which he (Mr Williams) was executing. By this stating of the account it will appear, that the commissioners, for their private expenses, from December, 1776, to 27th March, 1778, for the support and relief of Americans, escaping from prison in England, for the payment of Mons. Dumas, agent in Holland, the sending of expresses, the purchase of a large quantity of shoes, which were sent to Nantes, to be shipped for America, and for several less disbursements, had of Mr Grand only the sum of 244,285 livres, equal to the sum of ten thousand two hundred and sixty one pounds ten shillings sterling, which is of itself a demonstration, that there was no misapplication of the public monies, since Mr Lee has written, that he could not live under three thousand pounds sterling per annum himself. Whether or not extravagant prices were given for any of the articles purchased, will be an after consideration.

Mr Arthur Lee says, "That almost every thing still remains to be paid for."

I really know not what he means. Things once paid for are not to be paid for a second time, and the payments stated above are proved, by Mr Grand's accounts, to have been bona fide made. "Bargains," he says, "of the most extravagant kind, have been made with this Mons. Monthieu and others;" and then he proceeds to give an example. As to the bargains I was concerned in with this man, and with every other person, I totally deny the fact, and the example given is but a mere pretence. I am so confident of the contrary, that I will most cheerfully take every bargain made by me, or with my consent, in Europe, the contract with the Farmers-General excepted, (which was partly political at the time,) on myself, and will be bound to abide the profit or loss, leaving them to be judged of by the ablest merchants in Europe. Mr Lee informs us of one hundred thousand livres given to Mr Hodge, and that the privateer or vessel he bought cost about £3000, or 72000 livres, and adds, "for what purpose the surplus was given to Mr Hodge, how the public came to pay for her refitting, and at length the vessel, and her prize money, made over to Mr Ross and Mr Hodge, without a farthing being brought to public account, rests with Mr Deane or Mr Hodge to explain;" and in a few lines further he says, "you will see my name is not to the contracts;" but he forgets to add,—that he was at Berlin when they were made. What I have already observed upon in Mr Lee's letter, and what I purpose to notice, confirms me in the opinion, which Dr Franklin and some others have for some time had of him, that, from a long indulgence of his jealous and suspicious disposition and habits of mind, he is at last arrived on the very borders of insanity, and that at times he even passes the line; and it gives me pleasure, though it is but a melancholy one, that I can attribute to the misfortunes of his head, what I must otherwise place to a depravity of heart.

Mr Hodge went to Dunkirk, by order of the commissioners. They sent him in consequence of orders from the Secret Committee; he purchased and fitted out two vessels, a fact though forgotten by Mr Lee, known to every one at the time. From what that brave and virtuous young American did and suffered on the occasion, it was the common topic of conversation every where; it raised insurance in England ten per cent for a time. Mr Hodge, to appease the British Ambassador, was sent to the Bastile, and Cunningham, making his cruise round England and Ireland, put into Spain without prize money equal to the repairs he wanted. Mr Hodge was released from his imprisonment, and one of the first things he did, was to give Mr Lee the account of his whole disbursements in writing. Mr Hodge had taken a small interest in the adventure from the first, and proposed following Cunningham into Spain by land, and making a cruise with him. He proposed that Mr Ross and he should purchase the vessel; but as a price could not easily be agreed upon, they proposed to take the vessel as she was, and do the best with her against the common enemy, and to account to Congress therefor. Mr Ross desired that such an agreement should be signed by the commissioners for his security. I know not that it was ever done. I have only to add on this subject, that all the monies received by Mr Hodge amounted to 92,729 livres 18 3, in the whole, and that Mr Hodge rendered us other services besides equipping these two vessels.

Speaking of the contracts, he says, "they were in fact concealed from me with the utmost care, as was every other means of my knowing how these affairs were conducted." I have in reply to relate the following facts, which are easy to be ascertained. Mr Lee, on his return from Berlin, was made acquainted with the contracts; Messrs Holker, (now in Boston) Sabbatier and Desprez repeatedly conferred with Mr Lee on the subject in my presence, and when they brought in their accounts Mr Lee assisted in adjusting them, and signed with us the orders for the payment, as Mr Grand's account and the orders and accounts themselves will show. It is true, the execution of M. Monthieu's contract was not completed, when I left Paris, and therefore his accounts could not be settled. Mr Williams had the oversight of repairing the arms in the magazine at Nantes; he settled his accounts with his workmen monthly; he had a frigate fitting out for the commissioners, 10,000 suits of clothes making up, a number of shirts, shoes, &c. together with the charge of all the stores the commissioners were sending to Nantes to be shipped. Monthly accounts were not to be expected in reason from a man in such a situation; it could not be done if promised, and Mr Williams is a gentleman of too much probity as well as knowledge in business, to promise what he cannot perform. It is not enough to say, that no man in France enjoys a better character for strict honor and probity, both at Court and in the city, than Mons. Chaumont. Justice must add, there is no man enjoys it perhaps so universally through the kingdom, among the merchants, the farmers or husbandmen, and mechanics, in all which branches of business he is constantly speculating. This man is the friend of Dr Franklin; I have the pleasure of knowing him to be mine, and what is more, the friend of my country, on all and in the most trying occasions. I do not wonder that Mr Lee should appear jealous of this gentleman, as well as of every body else, a select few excepted, and very few indeed are those, who escape his jealous suspicions, either in Europe or America. It is a melancholy truth, but justice to the public requires my declaring it, that I never knew Mr Lee, from his first coming to Paris, satisfied with any one person he did business with, whether of a public or private nature, and his dealings, whether for trifles or for things of importance, almost constantly ended in a dispute, sometimes in litigious quarrels.

Mr Lee lived some time in M. Chaumont's house. M. Chaumont knew him perfectly well, and was not reserved in speaking his opinion of him. I am sorry to be thus long on so disagreeable a subject, a subject which I cautiously waived entering on, in my narration to Congress, not choosing to trouble them with matters, which they might deem of a personal nature. I am grieved to have been forced on it at all, and hope never to be obliged to resume it, and as in commercial transactions there are but two sides to an account, and every thing goes to the debt or credit, the folio for profit or loss, so I must solicit that Dr Franklin and the honorable Mr Adams may be directed to see the settlement of all those accounts immediately on my return to Paris, and as there has been a charge made by Mr Lee, of profusion, of extravagant contracts, and the like, that those gentlemen be authorised to submit the accounts, with every allegation of the kind, to the adjustment and determination of gentlemen of ability and character on the spot, and that orders may be given, that whatever sum may be found due from the commissioners may by them be instantly paid into the hands of the banker for Congress, and that in like manner said banker may be ordered to pay whatever may be the balance, to the person in whose favor the same shall be found. By this means the truth will be demonstrated, and justice done, which is all I have ever wished for. Having forgot to mention it in its place, I must be permitted to add here, that the first vessel purchased and fitted out by Mr Hodge was, on the return and imprisonment of Cunningham, detained by order from Court, and a second purchased, in which Cunningham went on his second cruise. The first was put up for sale at Dunkirk, but not disposed of when I left Paris, at least I had not heard of it.

I have the honor to be,

With the most respectful attachment, &c.

SILAS DEANE.

P. S. I have mentioned money paid Mons. Dumas, as part of the aggregate sum of 244,285 livres 13s. 10d. There will be found the sum of 4351 livres 5s. 3d. paid by Messrs Horneca, Fitzeau & Co. to Mons. Dumas, and for other expenses. I fear on a review, that the brevity I aimed at may cause some mistake; it is therefore proper to observe, that but a part of this sum was paid to Mons. Dumas, a part being for other disbursements, independent of which sum the commissioners made other remittances to Mons. Dumas.

FOOTNOTES:

Mr Deane's Observations on Mr Arthur Lee's Letter of June 1st, 1778.

Mr Lee, in his letter of the 1st of June, on which I have made observations, having insinuated many things to the disadvantage of Doctor Franklin's character, as well as to that of Mons. Chaumont and my own; and Mr Izard in those letters, the extracts from which I was favored with by order of Congress, having gone even beyond Mr Lee, and since in his letter of the 28th of June last, speaking of Doctor Franklin and myself, he says,

"There is very little reason to think that any objections however well founded would have made any impression on the interested views of one, or the haughtiness and self-sufficiency of the other."

Afterwards in the same letter speaking of Doctor Franklin he says,

"His abilities are great and his reputation high; removed as he is to so considerable a distance from the observation of his constituents, if he is not guided by principles of virtue and honor, those abilities and that reputation may produce the most mischievous effects. In my conscience I declare to you, that I believe him under no such internal restraints, and God knows that I speak the real unprejudiced sentiments of my heart."

Gratitude as well as justice to that truly great man, to whose friendship and counsel I owe much, oblige me to say on this occasion that I not only believe, but know that this is, to say no more of it, directly the reverse of the character which Dr Franklin has ever sustained, and which he now most eminently supports. It gives me pleasure to reflect on the honors and respect universally paid him by all orders of people in France, and never did I enjoy greater satisfaction, than in being the spectator of the public honors often paid him. A celebrated cause being to be heard before the Parliament of Paris, and the house, and streets leading to it crowded with people, on the appearance of Doctor Franklin, way was made for him in the most respectful manner, and he passed through the crowd to the seat reserved for him, amid the acclamations of the people, an honor seldom paid to their first princes of the blood. When he attended the operas and plays, similar honors were paid him, and I confess I felt a joy and pride, which were pure and honest, though not disinterested; for I considered it an honor to be known to be an American and his friend. What were the sensations of the writers of these letters on such occasions I leave their letters and conduct towards him to speak, and I cannot now express the indignation and grief I feel at finding such a character, represented as the worst that human depravity is capable of exhibiting, and that such a representation should be made by an American in a public character.

In the course of my narrative I mentioned Mr Williams's accounts as being finally settled. I drew my conclusion from his letter to me of the 22d of July last read in Congress. I find the accounts are not finally closed, though Doctor Franklin and Mr Adams have ordered him the payment. Mr Williams informs me he has written to Congress and sent his accounts; the accounts themselves will show that I have not, nor ever had, any private or personal interest in his transactions; at the same time I beg leave to interest myself in what affects this gentleman, because I think I know him to have been a most faithful and useful servant of the public, and every way deserving of the character given him by Dr Franklin and Mr Adams; and as Dr Franklin, from being his uncle, feels a delicacy in writing so fully about him, I therefore pray that this gentleman's accounts may be put into a train for being closed.

I recollect that Mr Lee has mentioned Count Lauragais in his correspondence with Mons. Beaumarchais, and am informed that this gentleman has in his letters been referred to. Count Lauragais is a nobleman, who was born to an immense fortune, the chief of which he has long since dissipated in a wild and I may say in such an eccentric course of life, as hardly has a parallel in France. He has set up at times for a philosopher, a wit, a poet; then as suddenly flew off, and engaged in building, planting, or politics; he was one month for engaging in trade, the next a country gentleman on his farm, the third blazing in the beau monde at Paris; and France being insufficient to afford a variety of scenes suited to equal the restlessness of his genius, he has constantly been shifting them, from Paris to London and from London to Paris. In London he set up for a patriot, and engaged seriously in the disputes and parties of the day, and what was very diverting, sat down for a few weeks to study the laws of England in order to confute Blackstone. His rank, to which his birth entitles him, gives him admittance to court, and the extravagancy of his wit and humor serves to divert and please men in high office, and he consequently at times fancies himself in their secrets. This gentleman knew Mr Lee in London before I arrived in France, and was afterwards often with him at Paris. His character was given me soon after my arrival, and I was put on my guard and warned by the minister, not that he supposed him to have designs unfriendly, either to France or America, but on account of his imprudence, and of his being frequently in London, and with those in the opposition in England, of whom the Court of France were more jealous, and against whom they were equally on their guard, as with the British ministry themselves. As this nobleman's name may be made use of, I cannot dispense with touching lightly on the outlines of a character extremely well known in France and England, and to which some gentlemen in America are no strangers.

I have mentioned the first and principal contract having been made for clothing, with Mr Holker, now agent for France in America. This gentleman was then one of the inspectors general of the manufactures of France, and knowing perfectly well the price and quality of cloth in every part of the kingdom, he undertook, at the request of our mutual friend, Mons. Chaumont, to put us in the way of being supplied at the cheapest rates, and, by joining himself in the written contract, induced his friends, Messrs Sabbatier and Desprez, to engage, which they did; they purchased the cloth at the manufactories, at the first cost, procured it to be made up at the cheapest rate, and the clothes to be transported to Nantes, charging only the prime cost on every thing, and two per cent commissions for their trouble. Mr Holker, after having engaged these men, whose house is a capital one in Paris, and who, from their having for some time supplied a great part of the clothes to the armies of France, were well acquainted with business of that kind, took no farther part in the affair, but that of examining the work and accounts, to see that every thing was performed in the best and cheapest manner. In this I assisted him. I went with him to the workmen, and examined the cloth, the fashion and the economy practised in the work, from which I will venture to assert, that clothes of equal goodness could not be made cheaper, if so cheap, by any other method in France.

Mr Holker, and the other gentlemen, as I have already observed, saw Mr Arthur Lee several times on the subject, until they became so disgusted with a man, who found fault with every thing, without stepping out of his door to examine any thing, that they declined having any thing further to say to him. When their accounts were ready to be settled, I examined them, struck the balance, and Mr Arthur Lee joined with Dr Franklin and myself in signing draughts on Mr Grand for the money. The bills were drawn in favor of Messrs Sabbatier and Desprez solely, Mr Holker taking no share in the commissions, but generously gave in the time he had spent in the affair, though it had been considerable. This gentleman is now in Philadelphia, and if necessary may be applied to respecting what I have said on this subject; his character, as well as that of his worthy father is well known in France, where they are jointly inspectors of the manufactures of that kingdom, and on every occasion they exerted themselves to serve this country, a testimony due to them from me when I am called on to mention them publicly. The instances they gave me personally of the most disinterested friendship and attachment I shall never forget.

I can but return to Mr Williams. This gentleman, after stating all his accounts in the fairest and most explicit order, attended near ten weeks at Passy for a settlement. Doctor Franklin and Mr Adams, as has before been related, so far approved of them as to order his balance, or nearly the whole of it, to be paid him, and gave him a letter certifying him of their full persuasion of his ability and integrity, and that he had done good services, yet such was the disposition of Mr Lee towards him, that he could by no means get them past. Impatient and wearied out with the captious insulting manner in which he was treated by Mr Lee, and which nothing but his official character protected him in, Mr Williams engaged a gentleman from Boston, Mr Cutler, to copy off all his accounts, and compare them with the original vouchers, and to make a voyage to America, to lay them before Congress. This gentleman arrived a few days since, and having made the voyage and journey on this purpose only, I take the liberty to entreat Congress in behalf of my absent friend and their faithful servant, that those accounts may be examined, that Mr Cutler may be heard if necessary to explain them, and Mr Williams relieved from the embarrassments of Mr Lee, whose disposition does not appear to be mended since I left Paris, but, if possible, greatly increased for dispute, and for the most vexatious altercation.

Could I take any pleasure on so disagreeable a subject, and one which throws the affairs as well as reputation of these States into confusion and disgrace, it would be to find that the universal testimony of all who know the situation of our affairs in France, confirms what I have in duty and justice to these States been obliged to lay before Congress. Mr Lee's nephew, a son of the honorable Richard Henry Lee, is in the house of Mons. Schweighauser, at Nantes, as a clerk, or as a partner, I am informed the latter. Commercial affairs, and the disposition of prizes, are put into the care of this house, while a near connexion of M. Schweighauser, at Guernsey, or Jersey, is employing himself in sending out cruisers on our commerce. I know nothing of M. Schweighauser, except by reports; those have been in his favor as a good merchant, but this circumstance, added to some others, which Mr Cutler informs me of, has given cause for the greatest uneasiness and distrust, which, added to the difficulties met with at Paris from Mr Arthur Lee, prevents any thing being done to effect, if really any thing at all towards sending out supplies to these States.

SILAS DEANE.

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 12th October, 1778.

In a conference had with Mons. Gerard, in the month of January last, at Versailles, he observed that the thirteenth article[15] in the treaty proposed by Congress, which exempted the molasses purchased by the inhabitants of the United States in any of the islands belonging to, and subject to, his Most Christian Majesty, from any duties whatever, was an unequal article, as he termed it, that without some concession of equal importance on the part of the United States, it could not be agreed to, as it would carry the appearance of inequality, and as if Congress were taking the advantage and dictating the terms in their own favor, that therefore it was expected, either wholly to omit the article, or place an equivalent over against it on our part.

On my return to Paris, I laid M. Gerard's proposals before my colleagues, who agreed generally to the justice and propriety of them, but we found it difficult to place any article or articles over against that of molasses, which would be of equal consequence, and in which the States of America were at the same time equally interested. After long consideration had on the subject, Dr Franklin proposed the article nearly as it now stands; Mr Lee objected to it, as being too extensive, and more than equivalent for that of molasses only; to which I answered, that though the concession might appear great, it was in reality nothing more than giving up what we never could make use of but to our own prejudice, for nothing was more evident than the bad policy of laying duties on our own exports; that molasses, though apparently but an article of small value, was the basis on which a very great part of the American commerce rested; that the manufacture of it into rum, was every year increasing, especially in the middle and southern states, where it had been more lately introduced.

Doctor Franklin agreed with me, and argued on much the same ground, but neither of us insisted on the article at the time, but that the proposition should be made for the consideration of Mons. Gerard, reserving to ourselves the power of agreeing to it or not afterwards. A few evenings after, and nearly as I can remember about five or six days before the actual signing of the treaty, we met Mons. Gerard at my house in Paris; he brought the proposed treaty with him, in which he had inserted the 11th and 12th articles as they now stand. The treaty was read, considered, and agreed to, article by article, except the 11th and 12th, respecting which M. Gerard observed at first, that he considered them as they then stood reciprocal and equal, but that he left it entirely with us to retain them both, or to reject them both, it being indifferent with his Majesty, but that one could not be retained without the other. On our having agreed to all the other articles, we told him we would confer together on the 11th and 12th, and write to him what our determination should be. As soon as he was gone, the subject was taken up; the arguments before used were again considered, and finally we unanimously agreed to retain both the articles; on which I desired Mr Lee to write a letter to Mons. Gerard, informing him of it, and that I would send it out to Versailles the next morning, from Passy, that there might be no more delay in transcribing and executing the treaties. Mr Lee accordingly wrote, and Dr Franklin, he, and myself signed the letter, which I sent the next morning.[16]

A day or two after this, Mr A. Lee wrote a letter to Dr Franklin and me, in which he expressed great uneasiness about the 11th and 12th articles, and a desire to have them left out, on which we advised Mr Lee to go himself to Versailles on the subject, which he accordingly did, and we wrote to M. Gerard, by him, that we were content to have the two articles left out, if agreeable to his Majesty.[17] As we had just before unanimously agreed and written to have them retained, we could not, with any consistency, make a point of their being expunged. Mr Lee discoursed on the subject with M. Gerald, who satisfied him as he thought at the time, and as we all then thought, of the impropriety of making any alteration in the treaty, after it had been so maturely considered; had been fully agreed upon by us all; had been approved of in form by his Majesty, and ordered to be transcribed and signed. Neither Mr William Lee nor Mr Izard ever spoke one word to me on the subject, and I did not think myself authorised or at liberty to consult them, or any other person on the subject, but my colleagues.

SILAS DEANE.

FOOTNOTES:

TO THE PRESIDENT OF CONGRESS.

Philadelphia, 1st November, 1778.

Sir,

I think it unnecessary to make an apology for sending you the enclosed estimates and reflections made on two of the most important and interesting subjects, and for desiring the same may be communicated to Congress. Should that honorable body approve of any or all of them, I shall be very happy, and if they should not they will excuse me for having given them this trouble, when they reflect, that the desire of throwing some light on these subjects has been my sole motive.

The providing for the redemption of our money, and the establishment of a marine, are objects, which in my view, far exceed in the magnitude and extent of their importance, any that are at present under public consideration; they greatly depend on each other, and permit me to say, all our future operations in a great degree depend on them. We cannot pay the interest of any considerable loan without commerce, which cannot be revived effectually without a marine force of our own, which may I am confident be formed on the enclosed plan, and be ready in a short space of time to act with vigor. Great Britain has long had the empire of the ocean, and in consequence the whole world has been her tributary; her own bad policy and the present war will deprive her of that empire; at this important crisis it depends on the measures taken by the United States, whether they shall succeed Great Britain or not in this extensive dominion. Reason, observation, and experience authorise me to say, there is not in the world any power so capable of it, and as the United States can never aim at foreign conquests, but simply to guard their own coasts, and to protect the commerce of their subjects, their superiority at sea can never give just cause of jealousy or offence to any other nation. I am confident that a fleet of forty sail, to consist of twenty such large ships as I have described, and twenty frigates, will be more than equal to this purpose, and such a fleet may be got to sea in the course of the coming year, if the materials wanted from Europe can be procured, which, if immediately applied for, I have not the least doubt of.

I have the honor to remain, &c.

SILAS DEANE.

P. S. I am still without the honor of any answer to my letter of the 7th ult.

November 13th.

After writing the above, my apprehension, lest I should be thought any way out of the usual course in communicating my sentiments to Congress, made me omit sending it to you with the enclosed, but the alarming intelligence, which I received but a day or two since, of the sentiments of my countrymen in different parts on the present situation of the credit of our money, the state of our finances and resources, and of the temper and disposition prevailing in consequence, has made me waive every personal consideration, and communicate this with the enclosed to Congress, and I shall count it one of the happiest occurrences of my life, if anything in my power will help to prevent that total loss of public as well as private credit, which I am sorry to find begins to be almost universally apprehended, and I fear appearances at this time are in support of such apprehensions, which though at bottom they may be ill founded, yet, if once generally prevailing, will produce consequences easily foreseen. I beg leave to refer to Colonel Duer for the substance of the intelligence I refer to, having communicated the letters I have received to him, for as they contain many things merely personal, I could not lay them at large before Congress.

S. D.

Plan for sinking fiftythree millions of dollars of the Continental Currency, and to establish a Bank of one million, and a half sterling, or $6,666,6662/3 in Europe for the use of the States of America, at the expense of forty millions of dollars in specie only, or of Bills upon Europe equivalent.

1st. Let a loan be obtained of twentyfive millions of dollars on account of the United States; the interest and necessary charges will probably amount to, and will not exceed, six per cent per annum.

2dly. Let a fund be established of two millions and a half annually, clear of all charges of collecting and remittances, out of which let the interest of the loan be paid, and the surplus unalienably appropriated as a sinking fund to discharge the principal; the annual interest of twentyfive million dollars; at six per cent will be 1,500,000 dollars, the sinking fund one million.

3dly. The calculation which follows demonstrates, that this fund of two millions and a half of dollars will, in sixteen years, pay off the principal and interest of the twentyfive millions borrowed, and leave a surplus of $673,103 in the hands of the States, which may be supposed equivalent to the charge of managing the money, and paying the loan in Europe.

4thly. A fund of two millions and a half for sixteen years amounts to forty millions, but twentyfive millions at six per cent simple interest will in that time amount to fortynine millions, supposing the interest annually paid; hence it is evident, that a sinking fund of one million operating on such a loan of twentyfive millions, will make a saving of nine millions of dollars to the States out of what will otherwise be paid on the same capital, on the plan of borrowing practised in our, and indeed in most other loan offices; or in other words would reduce the interest from six to little more than three and a half per cent, which is demonstrated in the following calculations.

5thly. Twentyfive millions of dollars may be computed in value equal to £5,625,000 sterling. Of this, let one million and a half, or £1,620,000 sterling be applied to the payment of debts contracted in Europe, contracted by the commissioners, for the discharge of which no particular mode has been stipulated and agreed upon, and for the establishing a bank or fund for other uses and benefit of the United States.

6thly. As the sum of £125,000 sterling will be equal to the public debts already contracted in Europe, except those to the Farmers-General and the house of Rodrique Hortalez & Co. there will remain, agreeable to the plan, one million and a half sterling, or $6,666,6662/3 in the Congress' Bank in Europe, and four millions sterling, or $17,777,7772/3, for the purpose of sinking the sum of fiftythree millions proposed.

7thly. The present rate of exchange is from five to six for one; it must happen that as bills are brought to market to a greater amount they will fall, but if it be considered that the ordinary demand of these States on Europe for goods exceeded four millions sterling annually in times of peace, that the demand at present and for two or three years to come, even if peace should take place immediately, must exceed the former usual demand, that though the cancelling and sinking of fiftythree millions of dollars will tend to appreciate the remainder in circulation, yet as there will still remain in circulation a greater nominal sum than the commerce of these States call for, the appreciation will not be repaid; and if it be further considered, that the merchants in the United States are at present destitute of their usual means of remittance, having neither ships, specie, nor produce on hand,—I say under these considerations it is improbable, if not impossible, consistent with the interest of individuals, that bills drawn on Europe for the sum of four millions sterling should be under three for one on an average.

8thly. Four millions sterling, or $17,777,7772/3, at three for one, will amount to $53,333,333 here. Allowing $333,333 for the charge of drawing the bills, for other expenses and deficiencies unforeseen, and there will be, agreeable to the proposals in the plan, fiftythree millions of dollars of the Continental currency paid off by the sales of those bills.

The benefits resulting from this plan, if realized, are numerous, indisputable, and obvious. As the sum proposed to be drawn for, does not exceed the ordinary amount of importation before the war, it cannot be presumed that this plan can produce any ill effects on commerce, especially if the Congress should think it wise and prudent to drop the merchants themselves, and depend on individuals for their supplies. The capital difficulty is to obtain the loan. On this, as well as on the preceding plan, I will make a few observations after the following calculations already referred to.

FIRST CALCULATION.

Years. Produce of the sinking fund at the end of every year. Total of the Debts paid at the end of every year. EXPLANATION.

1 1,000,000 1,000,000 The first column marks the years; the second the produce or amount of the sinking fund at the end of each year, the third shows how large a part of the capital has been paid off at the end of each year. The sum in the second column is found by adding to it annually the interest of that part of the capital paid off the preceding year, and the sum in the third by adding yearly the payments.

60,000

2 1,060,000 2,060,000

63,600

3 1,123,600 3,103,600

67,416

4 1,191,016 4,374,616

71,461

5 1,262,477 5,637,093

75,788

6 1,338,265 6,975,358

80,296

7 1,418,561 8,393,919

85,113

8 1,503,674 9,897,593

90,220

9 1,593,894 11,491,487

95,633

10 1,689,527 13,181,014

101,372

11 1,790,899 14,971,913

107,454

12 1,898,353 16,870,266

113,901

13 2,012,254 18,882,520

120,735

14 2,132,989 21,015,509

127,979

15 2,260,968 23,276,477

135,658

16 2,396,626 25,673,103

Principal Loan 25,000,000

Surplus 673,103

SECOND CALCULATION.

$2,500,000 annually collected and paid for sixteen years, amount to (the whole sum paid) 40,000,000

But the surplus of $673,103 deducted, leaves $39,326,897, the net sum applied to sink a principal of $25,000,000, and the interest for sixteen years, 673,103

39,326,897

The annual interest of $25,000,000 at six per cent is 1,500,000, which at simple interest in sixteen years is 24,000,000, 24,000,000

Add the principal, 25,000,000

49,000,000

Bring down 39,326,897

Surplus, 9,673,103

By these calculations it is clearly demonstrated,

First, that a certain net annual revenue of two millions and a half of dollars is sufficient for sinking the loan proposed of 25,000,000 in sixteen years, and to leave a surplus of $673,103 after discharging both principal and interest. In the second place, that by this plan the public will save the sum of $9,673,103 more than if the same sum is borrowed in the usual way of simple interest; or in other words, the money on this plan will be borrowed at 31/2 per cent interest nearest, a sum well deserving the attention of the public at this, and at every other time, and it is for that purpose the foregoing plan and calculations are submitted.

The only difficulties, that can possibly occur in the carrying this plan and every part of it into execution, are in the establishing such a fund, as will be certain for raising the two millions and a half of dollars annually, and in the next place in procuring the loan. The first may be obviated with greater ease and certainty than the second. It cannot in justice be concealed, that the loan cannot be obtained with the same ease now as it might have been six or seven months past, nor that the longer it is delayed, the greater the difficulty will be. It is however attainable if applied for in season, and in a proper manner. It is but too probable, that if delayed many months longer, it will not be obtained on any terms whatever. The war now kindling in Europe will probably in the course of another year become general, the consequence of which will be, that the emperor of Germany, the empress of Russia, and some other powers, the two former in particular, who have improved the late peace to regulate their finances, and to reduce and pay off their foreign debts, will on this change of affairs become borrowers afresh; in a word, there will be in Europe seven or eight, or more powers under the necessity of borrowing, and not more than two or three at the most in a situation to lend, and when so many demands are made for money, it will be very difficult to have ours preferred. To obtain it, therefore, requires immediate application, interest, and address; which thoughts, with the above plan, are respectfully submitted to the wisdom of Congress.

SILAS DEANE.

Proposals for equipping such a fleet, as will be sufficient to defend the coasts and commerce of the United States against any force, which Great Britain will be able to send to America.

It is necessary to premise, that the obtaining a loan, and setting on foot a naval force, are so connected with, and dependent on each other, and so many important consequences depend on both, that I have preferred placing one directly after the other, that my ideas on these great subjects may be perceived at one view, rather than the placing them in any manner separate or disjointed from each other. Without a naval force sufficient to protect in some degree our commerce as it revives, it will be very difficult, if not impossible, to pay either the principal or interest of the money we may borrow, and without some probably certain prospect of doing this, it would hardly be honest to borrow at all. I have only to add, that the following calculations are not founded on light and uncertain estimates, but on the most certain knowledge of the quantity of each of those articles necessary for the purpose. The prices are fixed at what they were last season in Sweden, and in the north of Europe; what I have ventured to say respecting ships of a new construction carrying fortytwo to fortyeight cannon, being equal to sixtyfour and even seventyfour line of battle ships, I am convinced of the truth of, not merely from my own observation and reasoning on the subject, but from the opportunities I have had of conversing with some of the most able and experienced constructors and commanders of ships in Europe, as well as in America. France, as well as England, has already several ships of such a plan on the stocks, which is a full proof in what light they view this plan of building; but fortunately for these States, their old prejudices, as well as the opposition of commanders of large ships, and a great number of men, to the changing them for ships of a less rate and fewer men, as well as of less pomp and appearance, will in a great measure prevent either of those nations from much immediate success in this plan for an improvement or reform.

1st. A fleet consisting of twenty such ships as mentioned above, joined by twenty frigates from twentyfour to thirtysix guns, will be sufficient to guard this coast against any naval force, which Great Britain, or any other maritime power can spare, to send against us. An American fleet, opposing a foreign one on this coast, will always have many very decisive circumstances in their favor, which are obvious at first view, particularly that of clean ships and healthy men against foul ships and sickly men, or fatigued by a long voyage, and that of being able with ships of the proposed construction to enter harbors in case of storm or other accident, which larger ships cannot.

2dly. The twenty large ships, and ten or a less number of the frigates may be put on the stocks and built in America, and though the present price of labor is dear, yet were the undertakers to be paid in sterling bills, or in specie, the hulls or bodies of the ships may perhaps be had nearly at the same price as before the war; but suppose they cost more, yet if every other article be procured from Europe at the first cost and common charges, the ships complete will not amount to much more than such ships usually cost before the war in America, probably not so much.

3dly. Suppose also that eight of the frigates be built in America, and twelve purchased in Europe, to transport the materials from thence for the rest. In the first place, let a calculation be made what all these materials, allowing a large proportion, will amount to, and also for the purchase of the twelve frigates, or ships for frigates, which are to transport those materials over to America.

CALCULATION.

Livres.

160,000 aulms of sailcloth, 240,000

500,000 cwt of anchors, 125,000

3,200,000 cwt of cordage, 1,280,000

6,000,000 cwt of cannon, 960,000

10,000 fuzees, fit for marine service, 200,000

200 tons of powder, 400,000

N. B. As iron is scarce and dear in America, especially in the east and northward states, I suppose 300 tons of iron, 160,000

12 ships fit for sea, capable of being armed as frigates of 24 to 36 guns, will unarmed cost 250,000 livres each, nearly 3,000,000

I suppose for shells, shot, cutlasses, spears, hand-grenadoes, and a variety of small articles, too many to be enumerated in such a general calculation, the sum of 1,000,000

Total amount, 7,365,000

Equal to one million six hundred and seventytwo thousand dollars,[18] for which sum twelve of the ships will be purchased, and all the capital materials for the others. One million of livres, or two hundred thousand dollars, is a large allowance for the small articles, and I know, from offers made me from Sweden, that the ships and other articles referred to, may be purchased there at the above rates, if they have not risen since the month of March last.

4thly. Of the proposed loan by the plan preceding, there will remain, after sinking the fiftythree millions and the payment of the present debts, the sum of one million and a half sterling, or 6,666,6662/3 dollars, out of which deduct the above sum of 1,672,000, and there remains the sum of 4,994,6662/3 dollars, or twentyfive millions of livres nearest, for other purposes; a sum sufficient for many great purposes. The commissioners, to the time of my leaving France, had not in the whole ever received four millions of livres, to enable them to procure all the supplies, which they engaged and sent over.

Notes in this chapter

Note 1 · For a copy of the power given to M. Francy, by Caron Beaumarchais, representing in France the house of Hortalez & Co., and also for several Note 2 · Allusion is here made to certain charges or complaints against Mr Thomas Morris, brother of Mr Robert Morris. He had been a merchant in Nant Note 3 · Mr Deane was recalled by a resolution of Congress, Nov. 21st, 1777. The following preamble and order were passed on the 8th of December foll Note 4 · See above, page 117.Note 5 · See Mr Izard's letters to the President of Congress, Feb. 16th and April 1st.Note 6 · See the articles of agreement, for this purpose, dated 15th October, 1776,—p. 51, of this volume.Note 7 · "Article XIII. It is agreed by and between the said parties, that no duties whatever shall ever hereafter be imposed on the exportation of m Note 8 · The articles in question are as follows; "Article XI. It is agreed and concluded, that there shall never be any duty imposed on the exportat Note 9 · See these letters in Arthur Lee's Correspondence, under the date of January 30th, 1778.Note 10 · There seems to be a mistake here, if the author's mode of reckoning five livres to the dollar be adopted. The sum would then be one million