THE CORRESPONDENCE OF JOHN JAY. (continued 3)

There are violent prejudices among them against us. Many of them have even serious doubts of our being civilized, and mention a strange story of a ship driven into Virginia by distress, about thirty years ago, that was plundered by the inhabitants, and some of the crew killed in a manner and under circumstances which, if true, certainly indicate barbarity. The King and Ministry are warm, yet I have reason to believe that the bulk of the nation is cold towards us; they appear to me to like the English, hate the French, and to have prejudices against us.

I mention these things to show in a strong light the necessity of punctuality in sending me from time to time all American intelligence of importance, and observing such conduct towards Spaniards in general, as may tend to impress them with more favorable sentiments of us. There was a little uneasiness among the mercantile people at Cadiz respecting the capture of some Spanish vessels by privateers. I hope the former have had ample justice done them; it certainly is of great importance that they should have reason to be satisfied.

Your Excellency may observe that I have written very particularly. Both this Court and that of France have very particular information respecting the proceedings of Congress.

Want of prudence, rather than virtue, I believe to be the cause. I nevertheless think it my duty to give Congress from time to time full information of their affairs here, and shall not be restrained by the apprehension of any consequences, that may result from want of secrecy there. I make it a rule to write on these subjects only to Congress, and to them very particularly.

I have the honor to be, &c.

JOHN JAY.

P. S. Congress may think it extraordinary, that Mr Carmichael's handwriting does not appear in this letter. He is, with my approbation, now at Aranjues, and I must do him the justice to say, that he is always ready and willing to do his duty as Secretary.

J. J.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, May 27th, 1780.

Gentlemen,

On the 27th of last month I had the pleasure of receiving your favor of the 11th of December, 1779, with copies of the resolutions of Congress, for drawing on Mr Laurens and myself for one hundred thousand pounds sterling each.

I had the honor of writing to Congress yesterday very fully respecting their affairs in this kingdom, and particularly on the subject of those resolutions.

I have not yet had the pleasure of hearing of Mr Lauren's arrival, about which I am anxious. Be pleased to assure Congress, that Mr Laurens shall receive from me every mark of attention, and all the aid in my power to afford. The latter I fear will not be great.

I have the honor to be, &c.

JOHN JAY.

TO JAMES LOVELL.

Madrid, May 27th, 1780.

Sir,

Eight days ago I had the pleasure of receiving a packet containing journals and newspapers.

From an endorsement I conjecture that I am indebted to you for it. There was no letter enclosed in it. I am much obliged by this attention. American intelligence is of more importance here (where they have little of it) than can well be imagined.

I have the honor to be, &c.

JOHN JAY.

WILLIAM CARMICHAEL TO JOHN JAY.

Aranjues, May 27th, 1780.

Dear Sir,

Since my letter of the 25th instant, I have very strong reason to believe, in consequence of conversations I have had with persons who ought to be well informed, that the fleet and troops, which sailed from Cadiz the 28th ultimo, are destined in the first instance to the Windward Islands, to act in concert with the squadron of the Count de Guichen, from thence as circumstances may render it proper they will proceed to Jamaica or the Floridas; for it appears to be the intention of the Spanish, as well as of the French Court, to detach a part at least of their force in the Islands to the continent, as soon as the hurricane season in the West Indies renders it dangerous for them to act against the enemy in that part of the world. I do not mention by letter my source of information, because I do not choose to hazard the loss of intelligence, which I may gain from the same persons, by the miscarriage of letters. I shall however mention it to you vivâ voce, in order to enable you to judge of the credit due to my information.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE PRESIDENT OF CONGRESS.

Madrid, May 28th, 1780.

Sir,

Since closing my letter of the 26th instant, I have received from Mr Carmichael the interesting intelligence contained in the enclosed paper.[24] He is now here, and has communicated to me the channel through which he obtained it, from which I think his information deserves belief, and his address in obtaining it credit.

I have the honor to be, &c.

JOHN JAY.

FOOTNOTE:

TO THE PRESIDENT OF CONGRESS.

Madrid, May 28th, 1780.

Sir,

In the journal of the proceedings of Congress of November, 1779, I find that on the 8th day of that month they were pleased to come to the following resolution. "Resolved, that the late and former Presidents of Congress be desired to lodge, as soon as they conveniently can in the Secretary's office, copies of all public letters by them respectively written during their Presidentship." After I resigned the chair, and immediately on your Excellency's election, I delivered a book, containing copies of the public letters I had written during my Presidentship, to your Excellency, who promised to lodge it in the Secretary's office, which, I am persuaded, was accordingly done. It gives me concern therefore to find this resolution is made to extend to me, and I flatter myself Congress will do me the justice to let it appear, by the entry to be made on their journals of the receipt of this letter, that I had done that part of my duty in season, and without their express request.

I have the honor to be, &c.

JOHN JAY.

TO THE PRESIDENT OF CONGRESS.

Madrid, May 30th, 1780.

Sir,

On the 26th instant I had the honor of writing a very long and particular letter to your Excellency, by the way of Cadiz, of which a duplicate has also been sent. To the contents of that letter I have nothing new to add, except that two of the bills directed to be drawn upon me have arrived.

I shall go tomorrow to Aranjues, from whence I shall embrace the first opportunity of communicating to Congress the further progress of their affairs here.

I have the honor to be, &c.

JOHN JAY.

DE NEUFVILLE & SON TO JOHN JAY.

Without date.

Sir,

By vessels lately arrived from the continent, and from St Eustatia, there appeared here some bills drawn by the Treasurer of Loans in America on Henry Laurens, Commissioner for the States in Amsterdam. Every body has been surprised at it, and we in particular, as we were directly applied to. We said at the first, that we expected Mr Laurens would be in town very soon, begging them to keep those bills a fortnight, and that, at all events, we would accept them. We have seen others since more willing to wait; but not knowing what sums may have been drawn for already, we are in hopes to be soon released from this anxiety by the arrival of the Minister. As we think your Excellency may have some intelligence about this matter, and have it in your power at the same time to save the credit of America, if Mr Laurens by any accident should not arrive, we beg the favor to be informed how to conduct ourselves. In the mean time we will do what lies in our power to prevent all noise and trouble about them. In case Mr Laurens should not arrive, your Excellency will have time left to make or provide for remittances, as the bills are drawn at six months' sight.

We have the honor to be, &c.

JOHN DE NEUFVILLE & SON.

DE NEUFVILLE & SON TO JOHN JAY.

Amsterdam, June 1st, 1780.

Sir,

Craving reference to our last, we have now the honor to propose to your Excellency on what terms we think all difficulty on account of the absence of Henry Laurens, as Commissioner from Congress here, may be prevented. We have written the same to Dr Franklin in France, offering him to accept all those bills, provided he gives us permission to re-draw directly on him for account of Congress, and to do it even at seven or eight months, until, by the arrival of Mr Laurens, or in some other way, this matter may be arranged, for there must certainly be provision made for those bills, and the sums we do not think will exceed two or three hundred thousand guilders before Mr Laurens's arrival here may be known in America, and matters are settled. We even offered those transactions without any view of interest, as for a commission. The importance of the business must have influence with every one, who has any regard for the United States; and this emboldened us even to trouble your Excellency with this relation, not doubting but you might equally find means to make matters easy at all events; for the terrible loss which there would be on such bills, if protested, must be prevented, and the honor of the credit of America must be saved. We hope our endeavor for it may be approved of, and have the desired end.

We have the honor to be, &c.

JOHN DE NEUFVILLE & SON.

DE NEUFVILLE & SON TO JOHN JAY.

Amsterdam, June 8th, 1780.

Sir,

In conformity with what we have informed you, that we had engaged for the acceptance of some of the bills drawn on Henry Laurens, since nothing has been heard of him as yet, we accepted those on the first instant, and we hope your Excellency, as well as Dr Franklin, may approve of our proceeding, and of the method we have proposed for our reimbursement, in case Mr Laurens may not appear, or that they should not be provided for in time. Certain it is that those bills should be honored for the credit of America. At the same time, it is not in the power of a mercantile house to stand for the whole; yet the measure proposed may make it easy, since the sums will not be so large but that they may be easily provided for in Spain and France by the Plenipotentiary Ministers. And for ourselves, we only desire to be properly empowered to draw again for any sums we may accept. As there was no time to get the matter previously adjusted, we will go on, and see how our plan may be agreed to and approved of.

We have the honor to be always with the most devoted regard, &c.

JOHN DE NEUFVILLE & SON.

COMMITTEE OF FOREIGN AFFAIRS TO JOHN JAY.

Philadelphia, June 16th, 1780.

Sir,

The embarrassments, which the depreciation of the currency had created in the public affairs at the time of your departure for Europe, were, as you may well remember, very distressing, and have, till lately, continued to increase. Congress, greatly anxious to avail themselves of every possible means of checking this evil, on the 23d of November last ventured on the expedient of drawing bills upon you for one hundred thousand pounds sterling, as you have been already advised by letter of December the 11th following. This they thought they might risk, considering the importance of the object. But as the time of your arrival in Europe could not be counted upon with certainty, and as the negotiation might not be immediately practicable, and moreover, as a disappointment would be highly injurious to the public faith, they determined to draw the bills at six months' sight, which we hope will allow sufficient leisure for every preparation.

It will not be amiss to observe, that Congress have not taken this measure without some circumstances of encouragement, that a fund to satisfy the draft would not be unattainable. Since the agreeable news of your arrival, and to answer a purpose of great national utility, Congress, by their resolution of the 19th instant, have directed bills to be drawn for the additional sum of twentyfive thousand dollars, payable at sixty days' sight. The exertions necessary at this crisis require the command of a considerable sum of money; but these drafts, we hope, will not be increased till we have intelligence from you respecting your prospects and assurances. We have the pleasure to inform you, that from the measures, which have lately been adopted, and with which you are made acquainted by the journals, the finances begin to assume a better appearance, and our public affairs in general will, we hope, be delivered from many of the embarrassments under which they have labored, but we earnestly entreat you to push every possible exertion for procuring aids of money from the Court of Spain, without which we are fearful the measures of Congress fully to restore the currency and prosecute the war with good effect will fall short of the desired success.

We have the honor to be, &c.

JAMES LOVELL, ROBERT R. LIVINGSTON, WILLIAM C. HOUSTON.

TO DE NEUFVILLE & SON, AT AMSTERDAM.

Madrid, June 18th, 1780.

Gentlemen,

Accept my thanks for your favors on the subject of the bills drawn on Mr Laurens. The kind concern you take in the credit and prosperity of the United States merits their acknowledgments, and I shall take the first opportunity of communicating to Congress your very friendly propositions relative to the acceptance of the bills.

Whether Dr Franklin is in circumstances to agree to these propositions I know not. They certainly are very generous and liberal, and would be attended with very happy effects. I am persuaded, that Congress would strain every nerve to fulfill them. I have no intelligence whatever of Mr Laurens, and am much at a loss to conjecture what should detain him.

I have the honor to be, &c.

JOHN JAY.

TO DE NEUFVILLE & SON.

Madrid, June 25th, 1780.

Gentlemen,

Your favor of the 8th instant came to hand yesterday. The receipt of the letters referred to in it was acknowledged by the last post. Your plan for paying the bills drawn on Mr Laurens is noble and generous. I heartily wish it may succeed, and that things could be so adjusted as that you might not be exposed to loss or inconvenience by it. But, gentlemen, as to this matter, I have neither instructions, nor the means of preventing the evils you mention. If I had the money, or could procure it, I would, without hesitation, engage to repay you punctually, but that is not the case. That Congress will repay you with gratitude I am certain, but whether quite so soon as your convenience may require, is more doubtful, because the absence of Mr Laurens is an event they did not foresee, and consequently did not provide against. If you could make a loan for the United States in your country, the money might be applied for the discharge of these bills. I am sure you would do Congress a very acceptable service by it. I have not yet heard from Dr Franklin on this subject. You may rely on all the aid in my power to render, and I should be very happy if it could be equal to the present exigency. I am not without difficulties respecting the bills drawn upon me. If these difficulties should cease, and I should be in a capacity to assist you, I will immediately let you know it, but of this there is as yet no great prospect.

As a man, I admire and esteem your conduct, and as an American I thank you. Be assured, therefore, that I shall omit no opportunity of convincing you of the regard and attachment, with which I have the honor to be, &c.

JOHN JAY.

TO THE PRESIDENT OF CONGRESS.

Madrid, July 10th, 1780.

Sir,

As a late and particular letter from me to your Excellency is now on the way to America, and as I purpose to write again very fully by the successor of M. Mirales, I decline saying much in this letter, which I shall send by a circuitous and hazardous route.

I have accepted bills to the amount of between eleven and twelve thousand dollars. They arrive slowly, and I am very glad of it. No news of Mr Laurens; I regret his absence. I hope the terms for the sale of the bills on me will not be lowered. Remittances have really become necessary. Distressed American seamen cost a great deal. The house of Le Couteulx has advanced money for them at Cadiz.

I had yesterday an application from the director of a hospital at St Andeira, desiring to be informed whether I would be responsible for the ordinary expenses of receiving and curing a New England master of a vessel, who had escaped from captivity pennyless, having one of his legs so injured by iron fetters as to be in danger of losing it. These are calls of humanity, and I entreat Congress to enable me to obey them, and to establish specific regulations for the conduct of these affairs.

The surrender of Charleston is the subject of much speculation, and many unfavorable conjectures. I have received no public letters since I left America, except one from the Committee, enclosing the resolutions for drawing bills on me.

I have the honor to be, &c.

JOHN JAY.

DE NEUFVILLE & SON TO JOHN JAY.

Amsterdam, July 13th, 1780.

Sir,

Never letter could have been more welcome than the favor your Excellency honored us with of the 25th of the past month, since it expressed a true concern about the bills drawn on Mr Laurens, and your approbation of our conduct. As we from the beginning acted from principle in the American cause, and never will prevaricate, this is only from the same motive, but we shall be sorry if we should not be supported, and that it is out of your Excellency's power to do it. We cannot judge how far those drafts may go, and if we had not expected that your Excellency, as well as Dr Franklin, would have been willing and able to answer for a trifle, (one or two hundred thousand guilders) in such a matter as this, it would have been a folly to undertake it.

Dr Franklin wrote to us, that people would be satisfied to have the bills enregistered, but we found the contrary; several of them would have them duly protested, and until today we have again accepted them all; but how it will go further we do not know. We were very sensible to the hint your Excellency was pleased to give us, of making a loan here. We might from time to time have got some money in that way, if properly authorised; and our good will and influence certainly would have brought it further than it had been done by the House, which was formerly intrusted with it, and we have long ago desired a loan should be opened in our hands, but we never could properly obtain it. A trifle of allowance, and chiefly the largeness of the sum, which was required from us to answer for at once, prevented it; so we did not think proper to mention it again. We can and may work for glory, but on a large scale we cannot sacrifice our own interest. Every catastrophe in favor of or against America, has with our public a great influence. So the capture of Charleston would be very much against us at this moment for such a purpose; and though we could not flatter ourselves to go any length with it, a very particular circumstance might revive the American spirit; and it would even require some time before such a power was brought into due terms, whereon we could engage anything.

This is certain, that in a moment as critical as the present, a small sum would save the honor of Congress, and in that light could not be paid for too dear; which made us think on a method, that your Excellency could employ a banker, and likewise Dr Franklin; that we, drawing on either of your Excellencies, if we were sure you would approve of it, could prolong terms in all probability, and without doubt as long as should be needful, and until the arrival of Mr Laurens, and that by his means and instructions proper measures could be taken.

We must also expect, that Congress, (as on the first days of May they were informed, that Mr Laurens had not sailed,) will have been attentive to provide for those bills, and have considered the consequences, as we do in Europe. We write the same idea to Dr Franklin, and propose to him, if he should not approve of such a method, or find a better, to empower us for a loan, as we know he had formerly instructions thereon. We are too nice and anxious for the credit of Congress to make any use thereof, if it should hurt matters any way; but it is not possible to know what may be done before a proper trial; and we are obliged at last to speak plain, that whatever bills now further should offer, we cannot accept any more. We wish our proposals may not seem incongruous; we make them with the more assurance, as we are not guided by any other motive, than by the most extended desire to prevent every difficulty, which could in any way affect the reputation of the United States.

We have the honor to be, &c.

JOHN DE NEUFVILLE & SON.

DE NEUFVILLE & SON TO JOHN JAY.

Amsterdam, July 28th, 1780.

Sir,

Since we had the honor of writing to your Excellency, it is but just, that we should inform you of the success of our proceedings in the acceptance of the bills drawn on Henry Laurens, for which Dr Franklin, by his last favor, has engaged, offering to accept further bills, when sent to him, until the arrival of Mr Laurens, or that some good reason may appear for the contrary. As this will answer the same purpose, and we think it best, that there should not seem to be any alteration, we offer today to continue our acceptance until forbid, under guarantee of our being reimbursed in time. We are very much pleased, that the matter is thus far settled for the honor of Congress.

We have the honor to be, &c.

JOHN DE NEUFVILLE & SON.

TO DE NEUFVILLE & SON.

Madrid, July 29th, 1780.

Gentlemen,

Your favor of the 13th instant was delivered to me last evening. I admire the generous principles, which lead you to take so decided and friendly a part in favor of America. I have too great confidence in the honor, justice, and gratitude of Congress to suspect, that they will permit you to be sufferers by your exertions in their favor. On the contrary, I am persuaded they will entertain a proper sense of your disinterested attachment, and with pleasure take every opportunity of acknowledging it.

Mr Laurens's absence is much to be regretted; his endeavors, aided by your assistance, would probably have prevented the embarrassments, which have taken place. I have not as yet received any advices of his having sailed, and your information of his not having left America in May is true. By a letter from a gentleman at Cadiz of the 21st instant I learn, that a vessel from North Carolina had arrived in fortynine days, and left Mr Laurens there on his way to Philadelphia. I am at a loss to account for this, having no intelligence from America on the subject. Perhaps his design was to sail from Philadelphia. If so, we may still look out for him. Prudence, however, demands, that every possible step be taken to alleviate the inconveniences arising from his absence. If my power extended to this case, I should, without hesitation, authorise you in a proper manner to make a loan in Holland, and be much obliged to you for undertaking it. But my instructions do not reach so far; all I can do is to advise as an individual, and as a public servant, to represent in a true light to Congress your benevolent efforts to preserve their credit. If Dr Franklin has such instructions as you suppose, and his circumstances will admit of it, I can at present see no objections to his taking some such measures as you propose, until Mr Laurens's arrival; but of this, he alone can properly judge. I shall write to him on the subject, and you may rely on my doing everything in my power. I assure you I feel myself, as an American, so much obliged by your generous zeal to serve my country, that I shall be happy in being instrumental to render the issue of it as agreeable and honorable to you, as the principles on which you act are meritorious and noble.

I flatter myself, that the unfavorable influence, which the capture of Charleston has on the public, will be of short duration. When they reflect, that America has nobly sustained a six years' war, fought hard battles with various success, and lost and regained several of their cities, they will find it ridiculous to believe, that the fate of the Thirteen States is involved in that of one or two towns. The like impressions were made, when New York, Philadelphia, and Ticonderoga fell into the enemy's hands; and those impressions were again removed by the battle of Trenton, the evacuation of Philadelphia, the battle of Monmouth, the defeat and capture of General Burgoyne and his army, and other victories on our side. Many of these great events happened when America had no ally, and when Britain had no other objects to divide her force. It is not reasonable, therefore, to imagine, that the power of Britain has been augmented by the accession of two formidable enemies, or that the power of America has been diminished in proportion as the number of her friends increased.

Depend upon it, that as the spirit of America has always risen with the successes of her enemies they will not, on this occasion, throw away their arms, and ingloriously pass under the yoke of a nation whose conduct towards her has been marked by injustice and oppression in peace, and by malice and wanton barbarity in war.

With sentiments of sincere regard and esteem, I have the honor to be, &c.

JOHN JAY.

TO DE NEUFVILLE & SON.

Madrid, August 16th, 1780.

Gentlemen,

My last to you was dated July 29th, in answer to yours of the 13th of the same month. I have since had the pleasure to receive your favor of the 28th of July, and am happy to hear that Dr Franklin has been able to take the step you mention. I cannot forbear again to repeat the sense I have of your very friendly conduct on this occasion. I assure you I shall rejoice in every opportunity of acknowledging the obligations you have conferred on my country. Such disinterested acts of friendship are not common, and ought never to be forgotten.

With sentiments of great and sincere esteem and regard, I have the honor to be, &c.

JOHN JAY.

TO SILAS DEANE.

St Ildefonso, September 8th, 1780.

Dear Sir,

If I could easily be angry with an old friend, I should be so with you. Your silence is unkind, and the more so as you might probably have communicated things useful, as well as entertaining. Before we parted in America, you gave me a cypher, and I really promised myself much from it on your arrival in Europe. I could almost wish that the winds had blown you this way. I would give a good deal for a day's conversation with you, but that is impossible. A correspondence is the only substitute, and perhaps you have detached yourself too much from public concerns and public men to be troubled with it. I hope this is not the case. It would be wrong to extend to a whole nation the resentments excited by a few. Perhaps other reasons may have induced your silence; whatever they may be I regret them.

Adieu. I am, dear Sir, your most obedient servant,

JOHN JAY.

TO THE PRESIDENT OF CONGRESS.

St Ildefonso, September 16th, 1780.

Sir,

This letter and several copies of it are to be sent by the next post to Bilboa, Cadiz, Nantes, &c. The object of it is to inform you, that it is necessary immediately to cease drawing bills upon me for the present.

Your Excellency may soon expect a full detail of particulars; you will then receive an answer to every question that may be raised upon this letter.

His Catholic Majesty has been pleased to offer his responsibility to facilitate a loan of one hundred and fifty thousand dollars for us, payable in three years, and to promise us some clothing. This need not be kept secret. I have written several letters to your Excellency, but have received only one from the Committee since I left America. It covered the resolutions respecting these bills.

The Philadelphia bank, the ladies' subscriptions, and other indications of union and public spirit, have a fine effect here.

I have the honor to be, &c.

JOHN JAY.

INSTRUCTIONS TO JOHN JAY.

In Congress, October 4th, 1780.

On the report of a committee to whom were referred certain instructions to the delegates of Virginia by their constituents, and a letter of the 26th of May, from the Honorable John Jay, Congress unanimously agreed to the following instructions to the Honorable John Jay, Minister Plenipotentiary of the United States of America, at the Court of Madrid.

That the said Minister adhere to his former instructions, respecting the right of the United States of America to the free navigation of the river Mississippi into and from the sea; which right, if an express acknowledgment of it cannot be obtained from Spain, is not by any stipulation on the part of America to be relinquished. To render the treaty to be concluded between the two nations permanent, nothing can more effectually contribute, than a proper attention, not only to the present but the future reciprocal interests of the contracting powers.

The river Mississippi being the boundary of several States in the union, and their citizens, while connected with Great Britain, and since the revolution, having been accustomed to the free use thereof, in common with the subjects of Spain, and no instance of complaint or dispute having resulted from it, there is no reason to fear, that the future mutual use of the river by the subjects of the two nations, actuated by friendly dispositions, will occasion any interruption of that harmony which it is the desire of America, as well as of Spain, should be perpetual. That if the unlimited freedom of the navigation of the river Mississippi, with a free port, or ports below the 31st degree of north latitude, accessible to merchant ships, cannot be obtained from Spain, the said Minister in that case be at liberty to enter into such equitable regulations as may appear a necessary security against contraband; provided the right of the United States to the free navigation of the river be not relinquished, and a free port or ports as above described be stipulated to them.

That with respect to the boundary alluded to in his letter of the 26th of May last, the said Minister be, and hereby is instructed, to adhere strictly to the boundaries of the United States as already fixed by Congress. Spain having by the treaty of Paris ceded to Great Britain all the country to the northeastward of the Mississippi, the people inhabiting these States, while connected with Great Britain, and also since the revolution, have settled themselves at divers places to the westward near the Mississippi, are friendly to the revolution, and being citizens of these United States, and subject to the laws of those to which they respectively belong, Congress cannot assign them over as subjects to any other power.

That the said Minister be further informed, that in case Spain shall eventually be in possession of East and West Florida, at the termination of the war, it is of the greatest importance to these United States to have the use of the waters running out of Georgia through West Florida into the Bay of Mexico, for the purpose of navigation; and that he be instructed to endeavor to obtain the same, subject to such regulations as may be agreed on between the contracting parties; and that as a compensation for this, he be and hereby is empowered to guaranty the possession of the said Floridas to the Crown of Spain.

TO DE NEUFVILLE & SON.

Madrid, October 4th, 1780.

Gentlemen,

I have lately had the pleasure of receiving your favor of the 7th of September. After the proofs you have given of disinterested zeal in the cause of liberty and America, I cannot harbor a doubt of your opposing the measures of a Court industriously employed in attempts to destroy both.

Your sentiments respecting the expediency of a connexion between the United States and your Republic concur with my own, and I am persuaded that those who know and wish well to the interests of both will assiduously promote it.

As I have received no further intelligence respecting Mr Laurens, I can add nothing on that subject. I cannot doubt but that good reasons have detained him, though I do not know what they are. Congress, I am sure, will continue their attention to the objects of his appointment, and will be happy in cultivating a friendly connexion with a people whose history exhibits many instances of heroic and glorious exertions in a cause similar to their own. Those among you who know history, and venerate the names and characters of their forefathers, cannot consent to be the instruments of despotism, to deprive others of those rights which were purchased for themselves by the blood of their own ancestors.

When or how far it may consist with the views of Congress to make mercantile appointments in your country, I cannot determine; should they ever become necessary, I cannot doubt of your being remembered. The most powerful recommendation I can give them, will be by sending them our correspondence; and for that purpose, copies of all the letters that have passed between us are now preparing, and shall, together with duplicates and triplicates, be sent by the first vessels.

As to the late ordinance of Spain establishing a paper currency, it is a subject on which I make no remarks, and for this very good reason, that the policy and propriety of that measure are objects without my sphere, on which I can have no influence, and which would not be altered by anything I might say or write about them.

The Mexican dollars, mentioned in the bills drawn upon me, I understand to be only another name for Spanish milled dollars, which you know pass here at twenty reals of vellon. How far the sale or payment of these may be affected by the paper in question I know not, though I must confess that I do not apprehend so much evil from it as some others do. These bills will be on an equal footing with all others drawn on Spain, and you will readily suppose it not to be in my power to put them on a better.

The King of Spain has been so kind as to offer to become responsible to a certain amount for monies which I may borrow for Congress, payable in three years. Be so kind as to inform me whether this could be done in your country, on their joint credit, how far, and on what terms.

I have the honor to be, &c.

JOHN JAY.

TO JAMES LOVELL.

Madrid, October 27th, 1780.

Dear Sir,

Your letter of the 11th of July gave me much pleasure. There is a degree of ease and cordiality in it, which, as mere letters of business do not require, I am the more obliged to you for.

It is true that I might write to Congress very often, indeed by every vessel, and there are many of them. But how are my letters to get to the sea-side? By the post? They would be all inspected, and many suppressed. There is scarce a man in any of the ports, except Mr Harrison at Cadiz, with whom I would trust them; so that if, under different covers, I should get them there, the danger would not end. To write often, and write nothing material, would be useless; and when you see my public letters, by this opportunity, you will perceive, that, to be well understood, I must write a great deal.

I would throw stones too, with all my heart, if I thought they would hit only the committee, without injuring the members of it. Till now I have received but one letter from them, and that not worth a farthing, though it conveyed a draft for one hundred thousand pounds sterling on the bank of hope.

One good private correspondent would be worth twenty committees, made of the wisest heads in America, for the purpose of intelligence. What with clever wives, or pretty girls, or pleasant walks, or too tired, or too busy, or do you do it, very little is done, much postponed, and more neglected. If you are naturally industrious, and love your country, you would frequently take up your pen and your cyphers, and tell me how the wheel of politics runs, and what measures it is from time to time turning out. I should be better informed and Congress better served. I now get more intelligence of your affairs from the French Ambassador, than from all the members of Congress put together.

I had written thus far, when I received a letter from M. Le Couteulx at Cadiz, enclosing a letter of the 16th of September, written at St Ildefonso from me to Congress. It had been enclosed in one to Mr Harrison, and that again put under cover to M. Le Couteulx, and, under these two covers, it was put into the post office. Now mark its fate. The Director of the post office at Cadiz showed it to M. Le Couteulx, naked and stripped of its two covers, of which he made no mention. He said it came from Bayonne, but M. Le Couteulx, knowing my hand writing, paid the postage, and returned it to me. This is only one among many instances of the fate to which my letters are subjected. To avoid it, I must now be at the expense of sending Colonel Livingston to the sea-side with my despatches.

When at Cadiz, I heard some of our countrymen, who had been prisoners at Lisbon, speak handsomely of M. Dohrmer. They mentioned his having supplied them with necessaries, but at the same time told me that he had been employed for the purpose by Dr Franklin. Hence it happened that I declined mentioning his usefulness to Congress. I considered him as an agent of Dr Franklin, who did his duty faithfully, and thought it would be more proper for him to recommend his services to the notice of Congress than for me.

I am, dear Sir, &c.

JOHN JAY.

TO THE PRESIDENT OF CONGRESS.

Madrid, November 6th, 1780.

Sir,

The last particular letter I had the honor of writing to your Excellency was dated the 26th of May, and, with a duplicate, was carried to Cadiz by Mr Harrison, who sent one by the Peacock, Captain Davis, to Boston, and the other by the General Arnold, Captain Jenkins, to Alexandria in Virginia. They both sailed in June last, and the former, I hear, arrived safe after a short passage.

I have since written several letters to your Excellency, but as they went to the seaports by the post, none of them contained anything material, except one from St Ildefonso of the 16th of September, advising Congress of the necessity of suspending further drafts on me for the present.

Congress will recollect, that my letter of the 26th of May contained notes of a conference I had with the Minister on the 11th of that month, on the subjects of my two former letters to him, the first in answer to his questions, and the latter relative to the resolution for drawing bills upon me. It may be remembered also, that, in this conference, the Minister promised me his sentiments in writing in a few days, as well on the subject of the proposed treaty, as on the bills which were daily expected. The first I have not yet received, and it was not before the 7th of June that I was favored with the latter.

In this interval there arrived here from England, by the way of Lisbon, an Abbé Hussey. He came to Lisbon in company with Mr Cumberland, one of Lord George Germain's secretaries, who, with his family, purposed, on obtaining permission, to come to Madrid. This priest was known to many, being a pensioner of the Spanish Court, and formerly in the late Prince Massarano's family. Indeed he took no pains to conceal himself, or his business, which was to obtain permission for his friend to proceed, on account of the bad health of a daughter. Mr Carmichael watched his motions with success and industry, and was the first who mentioned his arrival to me. He hired lodgings and a coach for Mr Cumberland, and visited several persons about the Court, particularly M. del Campo, First Secretary of the Minister.

On the first of June I received a card from the Minister, desiring to see me at nine o'clock the next evening. I waited upon him accordingly. The following are notes of what passed upon that occasion.

[Notes of a Conference between his Excellency the Count de Florida Blanca and Mr Jay, in the office of the former at Aranjues, 2d of June, 1780, reduced to writing, immediately after the conference ended, by Mr Carmichael, who was present at it.]

In consequence of a card received by Mr Jay yesterday, from his Excellency the Count de Florida Blanca, appointing him a meeting at nine o'clock this evening, Mr Jay waited on him at that hour. The conversation commenced on the part of the Minister, with polite inquiries for the state of Mr Jay's health, which, he said, had induced him not to send the notes promised on the former meeting, at the time when appointed, as he had been informed that he was indisposed. He attributed to his own frequent ill state of health (a disorder of the nerves, occasioned by his necessary application to business) the disappointment and delay to which, without intending it, the business that passed through his hands was sometimes subjected. He then said, that on Sunday following, at eleven o'clock in the forenoon, if Mr Carmichael would wait on him, he would send Mr Jay the notes formerly promised him.

He added that his reason for desiring to see him at present proceeded from something mentioned to him by the French Ambassador, of which he supposed he was informed. He recapitulated what he had before mentioned of the King's good faith and favorable disposition towards America, and entered more fully into his conduct in the negotiation with Great Britain, when the Court of Spain proposed a truce between that country and the United States, observing, that as the King at that period was determined not to sacrifice our interests, it could not be supposed that now, when at war with Great Britain, his Majesty would be less disposed to maintain them. After these reflections and assurances, he told Mr Jay that the person lately from England, by the way of Portugal, was the chaplain of their former Embassy at London; that he had been there for some time on his private affairs, and had at the same time instructions concerning an exchange of prisoners, which their sufferings rendered expedient; that the death of an uncle, a chaplain of the Court, had obliged him to return; that an English gentleman and his family had come to Lisbon with him, under the pretext, or really on account of the ill health of a daughter, to whom the Duke of Dorset was much attached; that the opposition made by his friends to the marriage had affected her health, and that this family was desirous of passing through Spain to Italy. He added, that this gentleman was one of Lord George Germain's secretaries, and would perhaps have some proposals to make for an exchange of prisoners, and possibly others of a different nature, which he assured Mr Jay should be communicated to him as candidly as he had communicated the extravagant scheme presented by Sir J. Dalrymple. He desired Mr Jay, therefore, to make himself easy on this subject, giving new assurances of the King's strict regard to justice and good faith, and of his disposition to assist America.

Mr Jay begged him to be persuaded of the perfect confidence of America and himself, and of their reliance on the good faith, justice, and honor of his Catholic Majesty; that he had no other apprehension from the circumstance of Englishmen resorting to this Court, than that the enemy would on this, as on former occasions, avail themselves of it, by endeavoring to alarm and deceive our people.

The Count de Florida Blanca assured Mr Jay, that he would shortly give him such proofs of the King's intentions, as would enable him to prevent any bad effects from such misrepresentations, and convince America of his Majesty's favorable disposition and good faith. After repeating assurances of his full confidence, Mr Jay mentioned that he had received two bills of exchange, drawn by order of Congress on him, and that he should take no measures on that subject, as he had before the honor of telling him, till he had consulted his Excellency. The Count, having asked the amount, and being told that the bills were for between six and seven hundred dollars, told him, smiling, that he might accept them, and he hoped so to arrange matters, as, in a short time, to make him easy on that head. He then said, that an expedition had been suggested to him, in which the Americans might co-operate; but, without entering into particulars, he recollected himself, and said he would send the project to Mr Jay by Mr Carmichael at the same time that he should give him the other papers. The conference ended with mutual compliments.

June 4th. This morning the Chevalier de Burgoing, Secretary of the French Embassy, waited on Mr Jay, and afterwards on Mr Carmichael, and told them the Ambassador had informed him, that the Count de Florida Blanca had received despatches from Versailles, which demanded his instant attention, and that, therefore, he could not see Mr Carmichael until the 5th, at the hour mentioned in the conference of the 2d. Mr Jay, however, having received no direct message from the Minister, thought it proper for Mr Carmichael to wait on him at the place and hour appointed. Accordingly he went to the Bureau of Foreign Affairs, and was told by order of the Minister, that he had desired the Ambassador to acquaint Mr Jay, that he could not see Mr Carmichael that day, but desired to see him next Monday, at eleven.

June 5th. Mr Carmichael waited on the Minister, agreeably to appointment, who, on his entrance, immediately expressed his concern, that the arrival of a courier, which informed him of the intentions of the Court of Great Britain to expedite the sailing of their grand fleet, had engaged his attention so much as to prevent him from fulfilling his promise of sending the notes mentioned in the former conferences, that he would certainly do it on the Wednesday following, and desired Mr Carmichael to wait on him that day at the same hour to receive them. He then mentioned an expedition, which had been proposed to him from Bilboa, to intercept the homeward bound ships of the East India Company, by equipping some frigates in America at the expense of his Catholic Majesty, desiring Mr Carmichael to communicate this to Mr Jay, that he might turn his attention to that object, to enable him to judge of the probability of its success. He touched slightly on the subject of bills of exchange, and on the only difficulty of the treaty, viz. the navigation of the Mississippi, which he said he hoped some middle means might be hit on to obviate. He concluded by saying that he would give his sentiments on that, and other subjects to Mr Jay in writing at the time abovementioned, and hoped that he would believe the delay hitherto proceeded from no other motives than those he had mentioned. Mr Carmichael assured him, that Mr Jay was too sensible of the importance of his other occupations, and of his candor, to impute the delay to any other cause, and after common civilities he withdrew.

This conversation needs no comment. It promised well. On or about the 19th of June, Mr Cumberland, his wife, and two daughters arrived, appeared publicly, and were openly visited and received by persons of distinction. But although it was not difficult to know who he was, and with whom he associated, his business and measures continue to this day mere objects of conjecture, further that he or the Minister has thought proper to communicate them.[25] The impression made by his arrival on the minds of the people is worthy of remark. They supposed his errand to be secret overtures for peace, and as far as I can judge were very glad of it. There is reason to believe that he favored these conjectures from the first. He has since said publicly, that he was authorised to offer to Spain Gibraltar, and other advantageous terms.

On the 7th of June, I received from the Minister his notes on the subject of aids. They are in these words.

Translation.

Aranjues, June 7th, 1780.

"His Catholic Majesty would be very glad to be able to furnish, at the present crisis, funds for the payment of the one hundred thousand pounds sterling, proposed to be addressed to Mr Jay, in order to evince the concern which the King takes in the prosperity and relief of the United States of North America, as well as in the personal satisfaction of the abovementioned gentleman. But the demands of the present war, and the great difficulty there would be to transport hither the treasures of the King's possessions in that part of the world, render it impracticable to furnish here, the said sum in specie, as could be wished. Some expedient, however, may be found to remedy this inconvenience. For example; if the owners of the bills of exchange would be content with the security or responsibility of his Catholic Majesty, to pay the sum already mentioned in the term of two years. The King will readily agree to such an arrangement, even if it should be found necessary to add a moderate interest. This security, given by such a sovereign as the King of Spain, would induce the owners of those bills of exchange, and the creditors of Congress to consent to a measure so advantageous, and would equally serve to sustain the credit and good faith of the same body.

"Mr Jay, therefore, is entreated to reflect on the idea just stated to him, and in answer to inform us what measures he thinks suitable to this scheme, in order that they may be laid before the King, and his orders taken thereon. If the expedient in question should be adopted, it will at the same time be necessary to take measures in concert to reimburse to the King this considerable sum, as well as others already expended in favor of the United States. The first idea which offers for reciprocal convenience is that Congress should engage to build without delay some handsome frigates and other smaller vessels of war, fixing the price of each, and the time when they will be finished.

"This point once settled, it will be proper immediately to take measures to equip these vessels as fast as they are ready; to point out what articles will be necessary to send from Spain for this purpose, and in what port they will have notice to receive them. After this it is expedient to be informed, whether the Americans themselves will engage to come to the ports of Bilboa, St Ander, Ferrol, or Cadiz, for the said articles, which they will find ready, and afterwards transport them in their own vessels of war or letters of marque to America. On this supposition it is conjectured, that it would be easy to find hands enough in America to man these new built vessels, which will sail under Spanish colors. There are certainly among the subjects of the said United States many who have made the voyage, and are acquainted with the usual route of the ships of the English East India Company, and who know perfectly well the ports and places at which they stop. This fact established, it is proposed to equip in the ports of the United States four good frigates, and some other lighter vessels, with the effects which shall be sent from hence on account of Spain. This small squadron, under Spanish colors, shall be employed to intercept the convoys of the said Company by cruising in the proper latitudes. The measures just pointed out appear to be the most proper to reimburse, in some shape, the expenses already incurred by his Catholic Majesty, and to answer for such security as has been proposed to be given in this memoir. It being always understood, that a share of the prizes taken from the English by this small squadron shall be given to the crews, and even to Congress, in proportion to the assistance which they shall furnish for the equipment of the vessels.

"A speedy and decisive answer to all the points here enumerated is requested, and Mr Jay is too enlightened not to perceive that the common cause is interested therein."

To this paper, which deserves much attention, I returned the following answer.

"Aranjues, June 9th, 1780.

"Sir,

"The propositions which your Excellency did me the honor to send on the 7th inst. have been considered with all the attention, which their great importance demands.

"The evidence they contain of his Majesty's friendly disposition towards the United States will, I am persuaded, make correspondent impressions on the citizens of America; and permit me to assure you, that his Majesty's desire of contributing to my personal satisfaction by measures conducive to the welfare of my country, has excited my warmest acknowledgments and attachment.

"The enlarged ideas my constituents entertain of the power, wealth, and resources of Spain, are equal to those they have imbibed of the wisdom and probity of his Catholic Majesty, and of that noble and generous system of policy, which has induced him to patronize their cause, and, by completing their separation from Great Britain, effectually to disarm the latter. Such wise and liberal designs, followed by such great and extensive consequences, would add a bright page to the annals of a reign already signalised by important events. It is, therefore, with deep regret that Congress would receive information that the aid they solicit, small when compared with their ideas of the resources of Spain, has been rendered impracticable by the expenses of a war, which, on the part of Spain, is of a recent date. Nor will their disappointment be less than their regret, when they find their credit diminished by the failure of a measure, from the success of which they expected to raise it.

"The kind disposition of his Majesty to become responsible at the expiration of two years for the amount of the bills in question, and that even with interest, is a proof of his goodness, by which I am confident the United States will consider themselves greatly obliged. But when it is considered that bills of exchange, immediately on being drawn and sold, become a medium in commerce, and pass through various hands in satisfaction of various mercantile contracts; that the drawer and every endorser become responsible for their credit at every transfer; and that the object of the merchants last holding the bills, as well as of all other merchants, is money in hand or actively employed in trade, and not money lying still, at an interest greatly inferior to the usual profits to be gained in commerce; I say, on considering these things, it appears to me that, although no objection can be made to the good faith of his Majesty, which is acknowledged by all the world, yet that the last holders of the bills will prefer recovering the amount of them, with the usual damages on protests, to delay of payment for two years with interest.

"Should these bills, therefore, meet with this fate, his Majesty will readily perceive its influence on the credit, operations, and feelings of the United States; on the common cause; on the hopes and spirits of the enemy. The necessity or prudence which detains his Majesty's treasure in his American dominions, is an unfortunate circumstance at a time when it might be so usefully employed. There is, nevertheless, room to hope, that the great superiority of the allied fleets and armaments in the American seas will, in the course of a year or eighteen months, render its transportation safe and easy, and that the greater part of it may arrive before the bills in question would become payable. This will appear more probable, when the time necessary to sell these bills, and the time which will be consumed in their passage from America, and the time which will be employed in their journey from different ports of Europe to this place, are all added to the half a year which is allotted for the payment of them after they have been presented. I am authorised and ready to engage and pledge the faith of the United States for the punctual repayment, with interest, and within a reasonable term, of any sums of money which his Majesty may be so kind as to lend them.

"As to the aids heretofore supplied to the United States, I am without information relative to the precise terms on which they were furnished, as well as their amount. When I left Congress, they appeared to me not to possess full and positive intelligence on these points. I ascribe this, not to omissions in their commissioner, who then had the direction of these affairs, but to those miscarriages and accidents, to which the communication of intelligence to a distant country is liable in time of war. If it should appear proper to your Excellency, in order that I may be furnished with an accurate and full statement of these transactions, I will do myself the honor of transmitting them immediately to Congress; and, as they happened prior to my appointment, I shall request particular instructions on the subject.

"With respect to the plan proposed for the repayment of such sums as Spain may lend to the United States, viz. by the latter furnishing the former with frigates, &c. &c. I beg leave to submit the following remarks to your Excellency's consideration. In the United States there are timber, iron, masts, shipwrights, pitch, tar, and turpentine; and Spain can furnish the other requisites. But neither the timber, the iron, the masts, nor the other articles, can be procured without money. The Congress are in great want of money for the immediate purposes of self-defence, for the maintenance of their armies and vessels of war, and for all the other expenses incident to military operations. The Congress, pressed by their necessities, have emitted bills of credit, till the depreciation of them forbids further emissions. They have made loans from their great and good ally, and, in aid of the system of gaining supplies by taxation and domestic loans, they have, for the reasons which I have already had the honor of explaining to your Excellency, drawn upon me the bills before mentioned. These bills will be sold in the United States for paper money, and that money will be immediately wanted for the purposes I have enumerated. If, therefore, this money was to be turned into frigates, the obvious ends of drawing those bills would not be attained. The war against the United States has raged without intermission for six years already, and it will not be in their power to pay their debts during its further continuance, nor until the return of peace and uninterrupted commerce shall furnish them with the means of doing it.

"That excellent frigates and other vessels may be built in America cheaper than in Europe, I am persuaded. And I know, that Congress will cheerfully give every aid in their power to facilitate the execution of any plan of that kind, which his Majesty may adopt, but, Sir, their necessities will not permit them to supply money to those purposes, and I should deceive your Excellency with delusive expectations, were I to lead you to think otherwise. I would rather, that the United States should be without money than without good faith; and, therefore, neither my own principles of action, nor the respect due to his Majesty and reputation of my country, will ever suffer me (if my authority extended so far) to enter into any contracts, which I had not the highest reason to believe would be fully, fairly, and punctually performed on the part of my constituents. Nor, in case his Majesty should think proper to cause frigates to be built in America, can I encourage your Excellency to expect, that they could be easily manned there for cruises. The fact is, that the American frigates often find difficulties in completing their compliments, principally because the seamen prefer going in privateers, which are numerous, and too useful to be discouraged.

"The design of preparing an armament to intercept the English East Indiamen appears to me very judicious. The enemy draw their resources from commerce; to annoy the one, therefore, is to injure the other. Before the present war, there were several, but not a great many Americans, well acquainted with the route of the East Indiamen. But whether any number of these men could now be secretly collected is uncertain; for if by a particular selection of and inquiry for them, the enemy should become apprized of the design, they would naturally take measures to frustrate it. For my part, I should suppose, that many of these men are not necessary, and that the proper number may be had from France, if not from America.

"The idea of the United States co-operating in the execution of this plan is flattering, and the terms proposed generous. But so far as this co-operation will depend on the building of frigates there as proposed, it cannot be effected from their want of money. Whether the American frigates could be employed in such an enterprise, that is, whether the services, for which they may be already destined, will admit of it, are, with other similar circumstances, necessary to be known before that question could possibly be answered. The distance from America, and the length of time necessary to ask for and receive information and instructions from thence, are such, that it would probably be more expedient, that engagements for these purposes should be discussed and concluded there than here. The circumstances of the United States, while invaded, will be more fluctuating than those of Spain, and measures in which they might conveniently embark at one period, may shortly after be rendered impracticable by the vicisitudes of war. It is further to be observed, that a people, rising amidst such terrible struggles, with an extensive country to defend, and that country invaded, and, as it were, on fire in several places at once, are not in good condition for foreign enterprises; but, on the contrary, that it must generally be their interest, and of course their policy, to keep their forces and strength at home, till the expulsion of their enemies shall afford them leisure and opportunities for distant and offensive operations.

"Whenever this period shall arrive, his Majesty may be assured, that the United States will not remain idle, but that, impelled by resentments too deep and too just to be transitory, as well as by unshaken attachment to their friends, they will persevere with firmness and constancy in the common cause, and cheerfully unite their efforts with those of France and Spain, in compelling the common enemy to accept of reasonable terms of peace. I can, also, with great confidence, assure your Excellency that the United States will be happy in every opportunity, which may offer during the war, of joining their arms to those of Spain, and in co-operating with them in any expeditions, which circumstances may render expedient against the Floridas, or other objects. The Americans would most cheerfully fight by the side of the Spaniards, and by spilling their blood in the same cause, and on the same occasion, convince them of their ardent desire to become their faithful friends and steadfast allies.

"I cannot prevail upon myself to conclude, without expressing to your Excellency my apprehension of the anxiety, and painful concern, with which Congress would receive intelligence of the failure of their bills, and especially after the expectations they have been induced to conceive of the successful issue of their affairs here. What conclusions the enemy would draw from the inability of Spain to advance the sum in question, even to men actually in arms against Great Britain, I forbear to mention, nor would it become me to point out the several evil consequences flowing from such an event, to those who enjoy from nature and experience more discernment than I am blessed with.

"I still flatter myself, that some expedients may be devised to surmount the present difficulties, and that the harvest of laurels now ripening for his Majesty in America will not be permitted to wither for want of watering.

"Influenced by this hope, I shall delay transmitting any intelligence respecting this matter to Congress, till your Excellency shall be pleased to communicate to me his Majesty's further pleasure on the subject.

"I have the honor to be, &c.

JOHN JAY."

Your Excellency will doubtless observe, that this answer does not comprehend all the objections to which the Minister's plan is liable, such, for instance, as the proposal that the vessels proposed to be built in America, with the money of America, and to be navigated by Americans, should sail under Spanish colors, &c. I thought it most prudent to avoid taking notice of these and similar circumstances, lest objections, which might be ascribed to pride, as well as reason, might lose their force in that supposition, and, instead of convincing, serve only to irritate.

Nothing further passed between the Minister and myself except a message or two respecting each other's health, until the 19th day of June, when I sent him the following card.

"Mr Jay presents his respectful compliments to his Excellency, the Count de Florida Blanca, and takes the liberty of enclosing the copy of a note he has just received, respecting a bill drawn upon him for three hundred and thirtythree dollars. From this his Excellency will perceive the painful situation Mr Jay is in. He forbears making any reflections on it, being persuaded that his Excellency's wisdom and sensibility render them unnecessary.

"Madrid, June 19th, 1780."

On the 20th instant I received the following answer.

Translation.

"The Count de Florida Blanca will have no difficulty in paying the bill of three hundred and thirtythree dollars mentioned in Mr Jay's note of yesterday, both on account of its small value, and in consequence of what he had the honor to offer him at their last conference; but he cannot forbear observing to Mr Jay, that it will be impossible to show the same complaisance for other bills without consulting the pleasure of the King.

"The means hitherto proposed not having been considered as agreeable to Congress, it has become necessary to seek for others, and Mr Jay will do well to think seriously on this subject, and communicate to the Count de Florida Blanca whatever his wisdom and information may suggest to him."

This looked dry, and indicated a degree of irritation, though it held up the idea of further means.

I replied to it on the 22d of June, as follows.

"Madrid, June 22d, 1780.

"Sir,

"I received the note your Excellency did me the honor to write on the 20th instant, and I take the earliest opportunity of expressing my thanks for your Excellency's permission to accept the bills mentioned in it, which I have accordingly done.

"Agreeably to your Excellency's recommendation in the first conference, I have turned my thoughts very seriously to the objects which were the subjects of it, relative to the bills drawn upon me; they were two.

"1st. The means of paying these bills.

"2dly. The proposed contract with America for light vessels, &c.

"With respect to the first, it appeared to me, that the principal difficulty was removed by your Excellency's informing me, 'that at the end of the present year, it would be in your power to advance twentyfive, thirty, or forty thousand pounds sterling.' Hence I inferred, that as much time would be taken up in the sale, negotiation, and transmission of those bills, and as so long a space as six months was assigned for their payment, after being presented, that the sums which it would be in your Excellency's power to advance at the end of the year, would probably be equal to the amount of the bills which would then become payable; and that in the mean time such further means might be provided, as would obviate difficulties with respect to those that might afterwards become due. When I reflected that I was a stranger to the resources of Spain, and that your Excellency's acknowledged abilities comprehended all the objects and combinations necessary in determining what supplies they were capable of affording, and the manner and means most proper for the purpose, it appeared to me in the light of presumption to hazard to your Excellency any propositions on the subject.

"2dly. On considering the proposed contract, it became important to distinguish between the building these vessels with the money of the United States, or with that of Spain. The latter was very practicable, and I gave your Excellency that opinion in my letter of the 9th instant. The former, on the contrary, appeared to me not to be within the power of the United States, and candor obliged me to make this known to your Excellency in the same letter.

"I knew it to be impossible for Congress, consistent with good faith, to contract; that, notwithstanding their great want of money, the injuries of a six years' war, and their being actually invaded, they would repay immediately the monies lent them, either in ships or otherwise. It is not uncommon for ancient and opulent nations to find it necessary to borrow money in time of war, but I believe it very seldom happens, that they find it convenient to pay those debts till the return of peace. If this be the case with powerful and long established nations, more cannot be expected from a young nation brought forth by oppression, and rising amidst every species of violence and devastation, which fire, sword, and malice can furnish for their destruction.

"If attentive only to obtaining payment of these bills, and thereby relieving my country from the complicated evils which must result from their being protested, I had entered into the proposed engagements for immediate repayment, by building vessels, &c. if I had done this, notwithstanding a full conviction, that the contract so made could not be fulfilled, my conduct, however convenient in its immediate consequences, would have been highly reprehensible. This reflection, therefore, will I hope convince your Excellency of the purity of my intentions, and induce you to ascribe my objections to the contract, to want of ability, and not to want of inclination in the United States to perform it. No consideration will ever prevail upon me to practise deception, and I am happy in a persuasion, that although truths may sometimes not please, yet that when delivered with decency and respect, they will never offend either his Majesty or your Excellency.

"Believe me, Sir, the United States will not be able to pay their debts during the war, and therefore any plan whatever calculated on a contrary position must be fruitless. I am ready to pledge their faith for repaying to his Majesty, within a reasonable term after the war, and with a reasonable interest, any sums he may be so kind as to lend them. What more can I offer? What more can they do? If there be any services they can do to his Majesty, consistent with their safety and defence, they are ready and will be happy to render them. They respect the King and the nation, and at the very time they are requesting his aid, they are soliciting to be united to him by bonds of perpetual amity and alliance. Against his enemies as well as their own, they are now in arms; and the supplies they ask are not for the purpose of luxury or aggrandizement, but for the sole and express purpose of annoying those enemies, and enabling France, Spain, and themselves, to obtain a peace honorable and advantageous to each.

"Of his Majesty's kind disposition towards them, they had received not only professions but proofs. Hence they became inspired not only with gratitude, but with confidence in his friendship. Impelled by this confidence, and a particular concurrence of exigencies already explained to your Excellency, they drew the bills in question. The issue of this measure will be highly critical, and followed by a train of consequences very important and extensive. The single circumstance of your Excellency having permitted me to accept the first of these bills, will be considered by our enemies as an unfortunate omen. By predicting from it further aids, their ideas of the resources of Spain, and the resistance of America will naturally be raised, and their hopes of subduing the one, or reducing the power of the other, will naturally be diminished. They will impute these aids to a plan of the House of Bourbon, wisely concerted and firmly persisted in, to secure themselves and all Europe against the ambition of Britain, by completing the division of her empire, and they will cease to flatter themselves, that America thus aided will become destitute of resources to carry on the war. On the other hand, America will derive fresh vigor from this mark of friendship, and their attachment to his Majesty become proportionably more strong. By mutual good offices, friendship between nations, as between individuals, is only to be established; and it is always a happy circumstance when it subsists between those, whom nature has placed contiguous to each other. But your Excellency's time is of too great importance to be engaged by such obvious reflections.

"Permit me, Sir, still to indulge the pleasing expectation of being enabled to inform Congress, that his Majesty's magnanimity and friendship have prompted him, though inconvenient to his own affairs, to secure the credit of their bills; and I am persuaded that the benevolence of your Excellency's disposition will be gratified in being instrumental in a measure, which would make such agreeable impressions on the hearts and minds of so great a number of steadfast friends to the Spanish monarchy.

"I have the honor to be, Sir, &c.

JOHN JAY."

As this letter was, among other things, designed to establish the expectations and encouragement given me by the Minister, as to money, in the last conference, by obliging him either to deny them against truth, or admit them, at least, by his silence, I desired Mr Carmichael to deliver it with his own hands, which he accordingly did. It still remains unanswered.

Your Excellency will be at no loss to perceive, that this was an improper season for pushing on the treaty, and that it would not have been prudent to have given poignancy to the Minister's feelings for the loss of his frigates, and the trouble of our bills, by disputes about the Mississippi, &c. &c. I therefore did not remind him of the notes he had promised, nor indeed say anything at all about the matter.

About this time I met with a printed copy of an act of the State of Connecticut, reciting and adopting the resolutions of Congress of the 18th of March last, respecting the former and new paper emissions. This was the first advice I had of those resolutions. The promise of annual interest in Europe appeared to me to be a hardy measure, though, in my opinion, the weakest side of the plan.

Finding the Minister's heart and imagination much attached to his favorite idea of getting American frigates at the expense of the United States, I gave him the following hint.

"Madrid, June 28th, 1780.

"Sir,

"I have the honor of transmitting to your Excellency, herewith enclosed, a copy of an act of the State of Connecticut, just come to hand, in which are recited certain resolutions of Congress, passed the 18th of March last.

"These resolutions are calculated to put the American finances on a permanent footing. They direct, among other things, that bills be issued, redeemable in specie, with interest, at the expiration of six years. The interest to be paid at the redemption of the bills, or at the election of the holder annually, at the American Loan Offices, in sterling bills of exchange on the commissioners in Europe.

"Your Excellency will perceive, that when this plan, so well concerted, shall be fully executed, it will furnish the United States with resources equal to all the exigencies of the war, and probably enable them to supply his Catholic Majesty with vessels, &c, &c.

"I take the liberty, therefore, of submitting to your Excellency's consideration, whether it would not be for the benefit of both nations, that his Majesty, on the one hand, should engage his responsibility for the credit of a certain proportion of the sum so to be emitted; and that the United States, on the other hand, should not only pledge their faith to indemnify his Majesty, but also furnish him with certain aids in vessels, &c.

"If your Excellency should think this hint worthy of your attention, it will be easy to improve it, and adjust the particulars.

"I have the honor to be, &c.

JOHN JAY."

This letter was accompanied with the following one, on the subject of some more bills that had just arrived.

"Mr Jay presents his respectful compliments to his Excellency the Count de Florida Blanca, and has the honor of informing him, that he has been called upon to accept bills to the amount of between ten and eleven thousand dollars; that the far greater part of them belong to Messrs Joyce of this city, who have agreed to wait for an answer until Monday next.

"Mr Jay exceedingly regrets his being obliged to give his Excellency so much trouble, but still flatters himself, that, when his Excellency considers it as his duty which imposes that necessity upon him, his goodness will excuse it.

Madrid, June 28th, 1780."

I ought also to add, that I had sent to the Count a representation on the subject of a very high handed stretch of power in the Governor of Teneriffe, towards a prize carried there by some Americans. On the next day I received the following answer to these three papers.

Translation.

"Aranjues, June 29th, 1780.

"The Count de Florida Blanca has had the honor of the three last letters, which Mr Jay has been pleased to write him.

"The first relates to a privateer detained in the Canaries. On this point he can say nothing until he has obtained some further information thereon.

"The second respects some new bills of exchange just presented by Messrs Joyce, to the amount of between ten and eleven thousand dollars. The Count can give no positive answer hereon, without first taking the orders of the King, his master, and having a meeting with the other Ministers, and some of these having already gone to Madrid, a determination cannot be immediately had, which renders it necessary for Mr Jay to require Messrs Joyce to wait some days longer for the answer in question.

"The third contains a project of an arrangement, by which his Majesty should oblige himself for his responsibility for certain sums in favor of Congress, and they, on their part, for the indemnification of the said sums at a certain period, by furnishing some vessels, &c. Mr Jay is therefore entreated to draw out a more clear and precise plan on this subject, noting therein the sum to which the responsibility of the King should extend, and on which they may converse at their first interview.

"In the meanwhile the Count has the honor of assuring him of the sincerity of his esteem and attachment."

Congress will observe, that the Minister still kept up the idea of an interference in favor of these bills. On the 3d of July, the Count having removed to Madrid, he wrote me a note expressing the same idea. It is in these words

Translation.

"The Count de Florida Blanca presents his compliments to Mr Jay, and prays to be informed when the last bills of exchange, which he mentioned the other day as being in the hands of Messrs Joyce, and amounting to about ten or eleven thousand dollars, will become payable. At the Palace, 3d of July, 1780."

Thus things were apparently in good train, when the news of the loss of Charleston became credible. The effect of it was as visible the next day, as that of a hard night's frost on young leaves.

I requested a conference with the Minister, and had one on the evening of the 5th of July. The following are notes of it.

Madrid, July 5th, 1780.

Mr Jay waited on the Count de Florida Blanca agreeably to an appointment made by the latter to meet at his house at half past eight this evening.

After the usual compliments, the bad news relative to the surrender of Charleston, just received, became the topic of conversation. The Count mentioned the channels through which he had received it, viz. by an express despatched by the Spanish Ambassador at Lisbon, in consequence of intelligence which Governor Johnson had received and published in that city, and by letters from the Count d'Aranda, with the accounts printed at London of the affair. He expressed his sorrow on the occasion, but observed, that the Count d'Aranda flattered him, that the arrival of the Chevalier de Ternay in that part of the world would totally change the face of affairs, particularly as there would be eight vessels of the line, and more than five thousand troops instead of three thousand, and three vessels of the line which he had been informed were demanded by General Washington.

He seemed to think it strange, that the place had not been better defended, and that more vigorous measures had not been taken to impede the enemy's progress, and observed, that if the town was not in a condition to stand a siege, it would have been better to have withdrawn the troops and stores, and reserved them for the defence of the country. Mr Jay replied, that probably when all circumstances relative to this affair were known, there might be reasons which would account for the conduct of the Americans on this occasion; to the truth of which remark the Count appeared to assent. He then mentioned the death of M. Mirales, and regretted his loss at this time. He said, he had recommended to his Majesty a person to succeed him, whom we knew, that spoke English, whom he expected soon, and to whom he would explain his ideas on the subject of the bills, and on other matters, touching which Mr Jay had written to him, and who would confer also with Mr Jay on those subjects.

Mr Jay mentioned, that if it was agreeable to his Excellency to permit M. Del Campo (a confidential secretary of the Count, who speaks English, and who translated all the letters to and from the Count) to be present, he should be able to explain his sentiments more fully and clearly. Though the Count did not object to this proposal, he appeared disinclined to it, and said, that with the assistance of Mr Carmichael, then present, they could understand each other very well.

He then proceeded to speak of the bills of exchange in the possession of the Messrs Joyce, and seemed to be surprised that that House should be possessed of so many of them. He advised Mr Jay to be cautious of those gentlemen, saying, that they were as much English in their hearts as the Ministry of that country; that he had known them long, that he thought their conduct extraordinary in being so urgent for the acceptance of these bills. Mr Jay then informed his Excellency, that he had paid those gentlemen a visit in order to obtain further time, and that they had consented to wait until Monday next. The Count mentioned a fortnight or three weeks as necessary, in order that he might have an opportunity of seeing the person he had sent for, and making some arrangements with him. He said, that it would be more agreeable to his Majesty to pay those bills at Cadiz, Bilboa, or Amsterdam, than here; lamented the precipitancy with which Congress had entered into this measure, saying, that if they had previously addressed the King on the subject, ways and means might have been found, either to transport from their possessions in America specie for the service of Congress, or to have enabled them to have drawn bills of exchange at a shorter sight, which would have prevented the loss of one third of the money to which Congress had subjected themselves, by the terms on which the present bills were sold. Mr Jay assured his Excellency, that by letters he had received from America, from members of Congress and others, he was informed, that the terms were judged so unfavorable to the buyers, that the bills drawn on him sold heavily from that circumstance solely, and not from any doubt of their credit and payment.

This did not, however, appear to convince his Excellency, who spoke much of the deranged state of our finances and credit; of the advantages taken of Congress by merchants and others, who availed themselves of that circumstance, which he called cruel extortions, frequently expressing the King's wishes and his own to render America all the service in their power in this crisis of their affairs; but observed, that it was impossible to obtain much money in Europe while France, England, and Spain, were making use of every resource to obtain it for the enormous expenses of the war, and while the channel through which the European merchants received supplies of specie was stopped, viz. the arrival of the usual quantity from America. This induced him to mention the arrival at Cadiz of three millions of piastres, all of which was on account of the merchants, and again to dwell on what he had before said of the possibility of transmitting specie to the States from the Spanish possessions abroad, and of the effect that this would have in re-establishing the credit of our money. Mr Jay observed in reply, that if a supply of specie could be sent to America, and his Excellency thought that measure more convenient and advisable than bills, the Congress would, in his opinion, readily suspend drawing, on receiving that information; to which the Count answered, that when the person he had sent for arrived, this matter might be further discussed.

Mr Jay then proceeded to observe, that by papers which he had transmitted to his Excellency, he would see that Congress had adopted a system to redeem and destroy the former emissions, and to emit other bills to be paid in Europe with interest in a certain term of years, and in fully establishing this system, it would be probably in their power, not only to sustain the credit of their money, but to contribute, in some measure, to assist Spain in the way proposed by his Excellency, viz. in building of frigates, &c. &c. He added, that as his Majesty's treasure was detained in America, and as much expense would be incurred by the armaments employed by Spain there, that bills on the Havana in favor of the United States might be more convenient to Spain, and equally contribute to the end proposed. The Count did not seem to disapprove of the idea, but did not enlarge upon it. He asked Mr Jay, if America could not furnish Spain with masts and ship timber. Mr Jay replied, that those articles might be obtained there. The Count then said that he would defer further remarks on this head, till the arrival of the person whom he expected would succeed M. Mirales, and appeared desirous of leaving this subject, and, indeed, all other matters relative to American affairs to be discussed when he came.

In the further course of conversation, he recurred to the subject of the bills in question, and told Mr Jay if an immediate acceptance of them was insisted on, that he might accept them payable at Bilboa, but rather seemed to wish that their acceptance might be delayed till the coming of the abovementioned person. Mr Jay expatiated on the impression, which the acceptance of these bills and every other mark of friendship would make in America at this particular crisis, and the Count, in a very feeling and warm manner, assured him that his desire to serve the States increased in consequence of their distresses. By his whole conversation he endeavored to show how much he interested himself in the prosperity of our affairs, more than once desiring Mr Jay not to be discouraged, for that with time and patience all would go well, expatiating on the King's character, his religious observation of, and adherence to his promises, and his own desire of having Mr Jay's entire confidence. Mr Jay seized this opportunity of assuring him of his full reliance on the King's justice and honor, and his particular and entire confidence in his Excellency, asserting to him that all his letters to Congress breathed these sentiments. The Count appeared much pleased with this declaration, and, seeming to speak without reserve, hinted his hopes that the combined fleets would soon be in condition to give the law to that of England in the seas of Europe, repeating that measures would be taken, on the arrival of the person expected, to provide for the payment of the bills of exchange, and that other arrangements would be made with the same person, which would contribute to relieve, as much as it was in his Majesty's power, the present distresses of America, of which he frequently spoke very feelingly in the course of this conversation.

Mr Jay reminded his Excellency, in a delicate manner, of the supplies of clothing, &c. &c. which had been promised in a former conference, and said that if they could be sent in autumn, they would be essentially useful. The Count assured him that measures would be taken for this purpose, with the person so often hinted at in the course of the conference; that probably these goods would be embarked from Bilboa, as everything was so dear at Cadiz. He also once more told Mr Jay, that at all events he might accept the bills presented by Messrs Joyce, payable at Bilboa, though he appeared to wish that this measure might be delayed for a fortnight if possible. The conference ended with compliments and assurances on the one part and the other, the Count endeavoring to persuade Mr Jay of his Majesty's desire to assist the States, and Mr Jay assuring him of his reliance on his Excellency, and of the good effects which such proofs of his Majesty's friendship would have in America at the present juncture.

In this conference not a single nail would drive. Everything was to be postponed till the arrival of the person intended to succeed M. Mirales.

On the 11th of July I wrote the Count the following note.

"Mr Jay presents his respectful compliments to his Excellency the Count de Florida Blanca, and has the honor of informing him, that Don Carlos Maria Maraci of this place has presented to him, for acceptance, bills amounting in the whole to one thousand six hundred and sixtyfive dollars. The Messrs Joyce consent to having their bills payable at Bilboa, but have acquainted Mr Jay that the name of the House there, by whom they are to be paid, should accompany the acceptance of the bills, it being necessary to their further negotiation.

"Madrid, July 11th, 1780."

To this note the following answer was returned.

Translation.

"In answer to the note the Count de Florida Blanca has just received from Mr Jay, dated yesterday, he has the honor to acquaint him, that he intends writing to Bilboa on the subject of the bills in the hands of Messrs Joyce, and which are to be accepted, so that it will be necessary to wait some days to fix the House at which the acceptance will be made.

"As to the bills presented by Don Carlos Maraci to the value of one thousand six hundred and sixtyfive dollars, the Count recommends to Mr Jay to request, in like manner, a delay of fifteen days for their acceptance, this time being necessary, that the Count may have an interview with a person not at present in Madrid.

"At the Palace, July 12th, 1780."

I was obliged to wait with patience, and endeavor to keep the holders of the bills from returning them, noted for non-acceptance. The Count went to St Ildefonso; the time limited for the arrival of the person expected having expired, I wrote the Count three notes on the subject of the bills, and in one requested his permission for Mr Harrison of Maryland to remain at Cadiz, from whence he was threatened to be removed in pursuance of the King's ordinance against Irishmen. To these I received the following answer, dated the 29th of July.

Translation.

"The Count de Florida Blanca presents his compliments to Mr Jay, and acquaints him that he has duly received his three last letters.

"For the satisfaction of Mr Jay, orders shall be given for Mr Harrison to remain at Cadiz, the general regulations established by the King notwithstanding.