THE CORRESPONDENCE OF WILLIAM CARMICHAEL. (continued 2)

The offer is rather ill timed, and I have reason to think is not very agreeable to the Courts of Versailles and Madrid, which will act with entire union on this occasion, and as long as the present King of Spain lives, it is probable, that this good understanding will continue on the whole continent, although there are some here, I believe, who would wish to see it interrupted. While it subsists Spain will not abandon our interests, though it may not support them with such good will, as they would have been induced to do by the obligations of previous engagements with the United States. It is not likely that these will soon take place, notwithstanding the appearance of good will, and repeated assurances which Mr Jay has received of his Majesty's favorable disposition. Nor will the late change of measures adopted by Congress effect this, if I am not misinformed. I have not seen these resolutions in full, nor do I know that Mr Jay has received them, but I have reason to believe, that the Court has a knowledge of them, either by intercepted letters, or by a direct communication from America. In short I repeat to the Committee, what I have taken the liberty of remarking before, that it was probably the policy of this Court to leave the adjustment of their claims to be settled at the general negotiation of a treaty of peace, and to reserve to themselves the liberty of acting then according to circumstances, unless they can previously secure in their own manner their favorite objects. This accords with the conduct they have hitherto observed, and with maxims of policy long adopted and persevered in by this Court.

In the meantime, they show a decided disposition to continue the war. They expect some treasure from America. They are likely to procure eight millions of dollars on loan, and have propositions from other quarters. The taxes have been augmented this year, the produce of the last having, as I have been told, fallen short of the expectations of the Ministry. They have thirtysix sail of the line under sailing orders at Cadiz, which fleet will probably cruise to meet the treasure ships expected, and to intercept the succors destined to Gibraltar. They have ordered a press throughout the kingdom to fill up their regiments. The ships with the treasure were to sail from Vera Cruz to the Havana the 11th of October. The Court seems apprehensive of the Emperor's intentions, and cultivates the friendship of the King of Prussia, for which purpose it is about to send a Minister to Berlin, where they have had none for many years past. This matter is not yet public, and will undoubtedly chagrin the Court of Vienna.

Mr Jay has been promised a part of the three millions of reals, mentioned in my former letters, to enable him to discharge the bills, which become due the ensuing month, and, I suppose, will receive the whole as the bills become payable, until the sum is exhausted, before which time, funds must be provided for such as have since been presented, or may hereafter come to hand. It is with pain I have lately entered to the amount of between thirty or forty thousand dollars, at three months' sight, as there is yet no certainty of their being paid, yet I flatter myself that the Court, with the good disposition it appears to have, will not suffer our credit to be ruined, after what it has done and promised to do to preserve it.

M. Gardoqui, so often mentioned, will embark in six weeks or two months. Mr Cumberland is still here, inspiring all the distrust and jealousy in his power to prejudice our affairs. I hope, however, he will soon be dismissed. Vigorous preparations are making in France, and I flatter myself that the Count d'Estaing will once more visit our coasts in force. I believe he desires it, and I am told he is on good terms with the new Minister of Marine. The Count de Vergennes was in a bad state of health by the last advices from Paris, but for information from that quarter, I refer the Committee to letters I suppose Congress will receive from Dr Franklin. It is with hesitation I venture to give my sentiments, and if I should be deceived, it is not for want of pains, but of opportunity of obtaining more accurate information.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, February 22d, 1781.

Gentlemen,

My last was of the 29th ult. since which, I have deferred writing, in hopes of having it in my power to give the Committee more distinct information of the actual situation of affairs in Europe at this important crisis, when its attention is turned to the conduct of the Empress of Russia and the armed neutrality, and to that of the Emperor, who, notwithstanding the offer of mediation, I had the honor to mention in my last, is, as I am informed, regarded with a jealous and suspicious eye. But the vessels, which take on board part of the clothing, of which I advised you at the time, and since it was promised, being about to sail, I seize the present occasion of writing, lest another from the ports of this kingdom should not soon present itself.

Our affairs here are in much the same state as when I last wrote the Committee. No further progress has been made in the negotiation. Mr Jay has received various letters and papers from Congress, dated in October. This day he has obtained an order for thirtytwo thousand dollars, to pay for part of the clothing to be shipped at Cadiz, of which he has not yet received the invoices, and to discharge the bills due this month. The Minister promises to furnish the whole of the three millions of reals mentioned in former letters, and to contribute to our further relief, as far as the exigencies of the State will permit him. These, I have reason to think, are urgent and great, and that the funds arising from the revenues and loans are, for the most part, appropriated before they are received.

I am not informed, that any positive answer has been given yet to the Emperor's offer of mediation. It is ill-timed, and I believe, in reality, is not well taken. I know that this Court is about to send a Minister to Berlin, where they have had none for a long time. The circumstances of such an appointment at this juncture, seem to imply apprehensions of the Emperor's intentions. I enclose two extracts of letters sent to me by M. Dumas, which contain intelligence that indicates the intentions of the Empress of Russia. The first letter I know to be genuine, for I saw the substance of it here in good hands, before I received M. Dumas's letter. If the Empress does not openly declare against England, she will, at all events, protect the Dutch commerce, and this must terminate speedily in open hostilities. I have observed, of late, a change of conduct in the Russian Ambassador at this Court, whom I have an opportunity of meeting frequently in company; from being cold and distant, he is complaisant and affable. I also find him very attentive to the French Ambassador.

Portugal has been much pressed by Russia to accede to the treaty of the armed neutrality, but the English party at this Court is too strong to expect success from these applications. The attachment of this King to his deceased sister, and at present to his niece, the Queen of Portugal, will prevent any violent measures being taken by our ally or Spain, to force that nation to adopt other measures. The republican party in Holland are in good spirits. Zealand has dropped the opposition it made to hostile measures, so that at present there is an unanimity in the States on that interesting point.

The troops for America were embarked, or embarking, the last of the past month. They consist of three or four thousand men (recruits included), and of Fullarton's and another ragged regiment, to use the words of Mr Edmund Jennings, who gives this information. The greater part of these, it is supposed, are destined to the East Indies, and Commodore Johnson is named by the public to command an expedition, which is to attack the Cape of Good Hope on its passage. The Ministry in England is the same. They have a great majority in Parliament. The Protestant associations begin to stir a little. Lord G. Gordon is acquitted. Stocks have fallen considerably since the Dutch war, not less than two and a half or three per cent. The subscriptions for the loans of the present year, it is generally believed, will be paid in slowly. Our ally pushes the preparations for the present campaign vigorously, but on the 14th instant the commander was not named for the fleet, which is to sail next month for the American seas, and which I am told, will consist of twentyfive sail of the line. I have no exact account of the number of troops to be embarked, but the lowest computation makes them consist of seven thousand men. The Count de Maurepas was ill by the last advices from Paris.

The Spanish squadron of thirty sail of the line is at sea, that of England it is supposed will sail about this period of time. Mr Cumberland gives out, that he has demanded a passport of the Court, but that he is told to have patience. I hope, however, he will not stay here long. M. Gardoqui will, probably, embark in all next month or the beginning of April. I beg the Committee to consider the intelligence I give them from time to time, particularly that from other countries, as the latest and most authentic I can procure, but for the truth of which I cannot vouch.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, March 4th, 1781.

Gentlemen,

I have received the enclosed letters from M. Dumas since my last of the 22d ultimo, copies of which I sent to Cadiz, to be forwarded in the vessels, that take from thence part of the clothing mentioned in my former letters. The remainder will I hope soon be embarked on board of other vessels, lately arrived in that port from America. As soon as Mr Jay receives the invoices, I will transmit copies thereof to the Committee. I also enclose the last accurate state of the British sea force in Europe. The squadron supposed to be destined for the relief of Gibraltar, sailed the 18th ultimo. The Spanish fleet, of nearly thirty sail of the line, is now at sea to impede their operations, so that important advices are daily expected from the coast. The exact number of the English squadron is not known. Count de Grasse is finally chosen to command the Brest squadron for the American seas, and is by this time nearly ready to sail.

Our affairs are in much the same situation as heretofore. It is not yet known here what part the Empress of Russia will take, although it is generally believed, it cannot be but unfavorable to Great Britain. Mr Cumberland is still here. M. Gardoqui will embark the last of this or first of next month. I make no doubt before his departure, Mr Jay will know the character by which he is to announce him to Congress. I have no reason to believe, that he will not have formal credentials from the Court, for otherwise, notwithstanding the information given in consequence of Mr Jay's conference relative to him with the Minister, I suppose Congress can only regard him as an individual.

A late publication in the Courier de l'Europe, extracted from Rivington's Gazette, asserting a mutiny of a considerable number of continental troops in the beginning of January, made considerable impression here, which happily we have had it in our power to remove by some arrivals from the northward. Considerable apprehensions and jealousies are entertained of the views of the States, of forming powerful establishments on the Ohio and Mississippi, in consequence of some publications in our papers, and other advices received by the Court, which has much better and more regular intelligence of our affairs than Mr Jay. This must be the case as long as the letters of Congress are confided to the common post in France and in this country. The difference of expense could not be so considerable to the public, as might be conceived, and the advantages are important. I am persuaded the Ministers of the above named nations, receive more information from the letters written to the public servants of Congress in Europe, than from those they employ in America. All the couriers of the Empress of Russia are officers of her army. We have at present, I presume, many young men on half pay in consequence of the late arrangements of our army, who would be happy to make these voyages in the public packets, who might be limited or brought to strict account for their expenses, and receive instructions from the Committee to answer public purposes, and be promoted or disgraced according to their execution of them. I beg the Committee will impute these suggestions to the true motive, a regard to the public service.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, March 11th, 1781.

Gentlemen,

Since my last of the 4th instant, I know of a certainty, that Mr Cumberland, so often mentioned in former letters, will soon leave this kingdom, and pursue his voyage to England by way of France. His departure would indicate, that all negotiations for an accommodation were at an end, if there was not reason to believe, that conferences on that subject are likely to take place in consequence of the offer of mediation made to the belligerent powers by the Emperor. As I have not the last mentioned intelligence from our friends, I give it with hesitation and not as certain. In a little time I hope to have it in my power, to give fuller information to the Committee on this subject.

The Count de Grasse left Paris the end of February, to take the command of the fleet for the American seas. I am afraid this fleet, or even a part of it, will not appear on our coasts until the month of July. I form my conjectures however from very minute circumstances, and may perhaps be deceived. The English grand fleet has not yet made its appearance. A very numerous convoy of provision vessels, &c. &c. sail with it for the East and West Indies and for America. Mr Adams has opened a loan in Holland for one million of florins, of which we shall soon know the probable success. I send enclosed the plan of the loan in the first copy of this letter, but finding it published in the Dutch and foreign papers, I suppose the Committee will receive it before this can reach them. The mutiny of the Pennsylvania line has had a bad effect in Europe, and our enemies have been indefatigable to represent it in the worst colors. I hope Congress has been able to pacify the discontented, and that as they have hitherto done, they will still overcome all obstacles to the freedom, tranquillity, and importance, of the United States.

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

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Aranjues, May 25th, 1781.

Gentlemen,

Since my last of the 16th instant, the French Ambassador has received the agreeable intelligence, that M. de la Motte Piquet fell in with the St Eustatia fleet, consisting of thirtyfour sail, of which he captured twentyfour, their escort, two seventyfour gun ships and two frigates, having escaped by their superior swiftness; four other vessels of the same fleet I hear are taken. The captain of a packet boat, arrived at Corunna from Newport, says, that he was chased in the latitude of the Azores by the English fleet, which consisted of eighteen sail of the line. The Spanish squadron has not been heard of since it sailed.

Thirtysix transports, of two hundred and two hundred and fifty tons, are taken up at Cadiz on government account, and provisions for eight thousand men for four months are ordered. The destination of the armament is a secret, but there is reason to think it is either intended for the West Indies or for their own settlements in Peru. If for the former, it will hardly commence its operations before the month of November, when the Count de Grasse will be able to join it, after his return from our coasts.

Many bills, drawn by Congress last year, have already been presented and accepted by Mr Jay; the funds are not yet provided for their payment, but I hope the advices lately received from Congress will produce a change of conduct in this Court. I allude to a letter from the Committee, which came in the Virginia to Cadiz. I am persuaded the Minister was informed of its contents before it reached Mr Jay, for the packets were stopped at Cadiz, and bore evident marks of having been inspected.

The Committee must be sensible, that a negotiation will ever be carried on to our disadvantage, when the parties with whom their Minister treats, are thus early informed of the most secret intentions of Congress. This apprehension renders my correspondence with the Committee more irregular than it would otherwise be, for I am often obliged to wait ten days or more, for safe opportunities of conveying my letters by private hands to Cadiz, Bilboa, or the ports of France, to prevent a previous examination of them here.

I hope soon to write by M. Gardoqui, but I have so often advised you of this gentleman's intended departure, and then been so often disappointed, that I cannot give full belief to the late information I have received on this subject.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Aranjues, May 26th, 1781.

Gentlemen,

The Court being at this place at present, Mr Jay has judged proper to reside here until it returns to Madrid, from which city I addressed the Committee the 23d ult. Mr Jay, since his arrival here, has seen the Minister and been civilly received. He will inform Congress of what passed on this occasion. M. de la Motte Piquet, whose squadron could not be ready in time to join M. de Cordova, and enable the Spanish fleet to oppose that of England, destined to relieve Gibraltar, sailed on a cruise the 24th ult. to intercept the homeward bound fleet from St Eustatia, or one from the leeward Islands. The English squadron, after relieving Gibraltar, is gone to cruise off the Azores or the Canaries, to intercept the fleet from the Havana with treasure, the amount of which I mentioned in my last; this, at least, is the opinion of several well informed people here. That of Spain has cruised for it to escort it into port, I believe, on a presumption, that the English would return to port, or detach a part of their squadron to reinforce their others in various parts of the world. Should the latter be the case, and these fleets should encounter, that of Spain will have greatly the advantage in number, it consisting of thirtytwo sail of the line.

I have the pleasure of informing Congress, that the Court of France has engaged to guaranty a loan of ten millions of livres for the States, and to make large advances in stores and cash immediately. I wish it was in my power to furnish as agreeable accounts from this Court. The negotiation is in the same situation as when I had last the honor to write to the Committee, my sentiments of the motives for this conduct are still the same. The mediation seems at a stand, and, probably, will not be renewed before the end of the campaign. Troops have been ordered to march towards Gibraltar from various parts of the kingdom, but I have some reason to think, with a view to another object, viz. either to be sent to the West Indies or to Peru, where, it is said, there appears a spirit of disaffection, which creates some apprehensions here.

The crop is likely to be more abundant throughout Spain, than it has been for many years past. I have not as yet heard, that Russia has taken a decided part in favor of the Dutch. Their squadron in the Mediterranean and at Lisbon are ordered home. The Portuguese preserve a strict neutrality at present. M. Gardoqui is still here, but I hope will embark next month. I have not had the honor of hearing from the Committee since I have been in Europe, and Mr Jay informs me, that he has received but three letters from Congress since his residence here.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Aranjues, June 2d, 1781.

Gentlemen,

The last post from France brought the news of M. Necker's removal from the Ministry. This change would have been agreeable to this Court some months ago, on account of the interference of that Minister in the operation of the loan mentioned in former letters. At present, it seems to be regarded in a disagreeable point of view, as M. Necker had engaged to furnish monthly, considerable sums to persons employed to procure money for this Court, on condition of being reimbursed in specie in Spanish America, and on other terms that would have been advantageous to the lenders. Part of the specie thus procured, was intended for the payment of the French troops in North America, and, as I have been told, for the immediate service of Congress, as part of the sum the Court of France has lately engaged to furnish to the United States.

I have been told, that M. Necker was not disposed to make large advances to Congress, and, as a proof of this, it has been mentioned to me, that he opposed the King's guarantee of a loan, which Dr Franklin endeavored to negotiate last year at Genoa. He is said to have been obstinately attached to his own opinions, and of a haughtiness in supporting them, which the man who placed him could ill brook. He felt an opposition that he could not bear, and which, perhaps, he saw he must sink under, and, therefore, asked his dismission, which was granted him. He is regretted as a public loss. It would be presumption in me, to enter into a more minute detail on this subject, as your correspondents on the spot will certainly give the Committee much ampler information than it is in my power to do.

Since my letter of the —— ult. I have had an opportunity of knowing, through the same channel of intelligence mentioned in former letters, that the Court of Vienna still persists in its good offices, to bring about conferences for a general peace. Without being able to mention particulars, I can assure the Committee, that in the middle of April, the Baron de Breteuil, Ambassador of France, at the abovementioned Court, insisted for the admission of an American Plenipotentiary at the proposed Congress. The Prince de Kaunitz lamented this proposition, as an obstacle that might impede a business, which the Emperor had much at heart. I have not been able to trace the demands of Spain, but I believe their pretensions in general, do not appear reasonable to the Imperial Court.

We have had no news of the fleet since I had last the honor of writing to you. There is reason to think, by news received from England, that Darby had orders to return to that country. The expedition mentioned in former letters, will be ready for action in the month of July. The choice of officers to command it is not yet public. The negotiation is in the same situation.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

JAMES LOVELL TO WILLIAM CARMICHAEL.

Philadelphia, June 15th, 1781.

Sir,

Your several letters have been read in Congress; and your industrious care, to give frequent, early, and general information of those things in Europe, which may have influence upon our national affairs, has been not only highly pleasing in itself, but has acquired value lately, from the loss of all packets from Mr Adams, since his date of October 24th.

I am, Sir, your friend and humble servant,

JAMES LOVELL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, August 16th, 1781.

Gentlemen,

Since my last, of the 15th ult. in which I enclosed the Committee a list of the combined fleet assembled at Cadiz, and of the troops to be embarked under the command of the Duc de Crillon, we have advices of the sailing of this fleet, and that the troops of the expedition passed the Straits of Gibraltar the 23d ult. They had, however, been detained by contrary winds, and had not left the neighborhood of Carthagena the 7th instant. The Court expects soon to hear of their landing in the Island of Minorca. It is the general opinion, that the force employed is not sufficient to take Port Mahon. The character of the General, who I have the honor to know intimately, does not accord with this idea. The combined fleet by the last advices was cruising off Cape Spartel. That of England, commanded by Darby, is at sea, to the number of twentythree or twentyfive sail. The Dutch fleet sailed on the 23d ult. and consists of seventeen sail in the whole, it is said to be destined to the northern seas, where England has a squadron inferior in number of vessels, under the command of Sir Hyde Parker.

Our negotiation seems to be in a better train, and it is not improbable, that Mr Jay will be able to terminate our affairs with Spain previous to the general negotiation, which is much talked of at present among the corps diplomatique here. The number of couriers who pass and repass between the Courts of Versailles, this, and those of Vienna and Petersburg gives occasion to those conjectures. Mr Adams has been lately sent for by the Count de Vergennes, and, as I am informed, has had conferences with that Minister. If this should be the case, the Committee will have from the first authority, more ample details on this subject, than can be learnt from second and third hands.

The United Provinces of Holland, &c. appear much divided, and seem more employed in party quarrels and private interests, than in pursuit of measures for the public advantage and honor. I fear the republican party lost ground by their late attack against the Duke of Brunswick. This Court continue to borrow money, and have just concluded a loan for three millions of dollars, to be refunded in the Havana and Vera Cruz, one million in the present year, and two in 1782. They have other loans in contemplation, of the general nature of which, I hope to be able to inform the Committee in time, although it may be difficult to obtain the minute particulars and conditions of these loans. The French Minister is concerned in the last mentioned, and will receive part, at least, of the three millions in question, which I hope will ultimately centre in North America.

Mr Jay continues to accept the bills drawn on him; between twenty and thirty thousand dollars have been accepted, for which, as yet, no funds are provided, but I hope we have not much to fear for their payment. I have rendered Mr Jay accounts of all our money transactions here, which, with his usual regularity, he will transmit to Congress, as also minute details of his other transactions here. Among the bills presented, it may not be improper to mention, that several have been endorsed by people in America, payable to merchants in Great Britain and Ireland. If this does not accord with the ideas of Congress, the treasury will be instructed to convey to Mr Jay further directions on this subject.

Although much is said of the forwardness of the negotiations —— peace, it is not probable that the preliminaries to be fixed on previous to the opening of the conferences can be adjusted, until the fate of the campaign is known, particularly if this Court acts with its usual deliberation, which some call dilatoriness. If the expedition against Minorca succeeds, and if money can be procured for the operations of the war, it is the opinion of some persons who are well informed, that the general peace will meet with more obstacles here than elsewhere. I have already written to the Committee, that the Court of Vienna found the pretensions of this Court extravagant. Its great objects of the war, are the possession of the entire navigation of the Gulf of Mexico, and Gibraltar. These are said to be the King's objects, who is in a good state of health, and follows with the same ardor his daily occupation of the chase. There is no talk of a change of Ministry. The fleet from Buenos Ayres, mentioned in former letters, is arrived, and I am afraid M. Solano will be more attentive to the safe arrival of that from the Havana, than to the prosecution of the plan of operations formed with our ally. The affairs of Great Britain in the east, are in a bad situation, and in consequence thereof India stock has fallen eight per cent.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 28th, 1781.

Gentlemen,

Since my letter of the 14th instant,[10] the Minister has notified to Mr Jay the King's intentions of naming a person to treat with him; there is reason to think his nomination and instructions will have his Majesty's approbation on Sunday next, though possibly it may not be formally communicated until the Court is at the Escurial, to which place the royal family goes the 10th of next month.

M. Del Campo, whom I mentioned in my last, is the person who probably will be chosen. I repeat his name lest that letter should miscarry; he is First Under Secretary of Foreign Affairs, and acting Secretary of the Council of State; and has the reputation of possessing great abilities and application to business, and I believe he merits what is said of him. He has also the entire confidence of the Count de Florida Blanca; his residence in England as Secretary of the embassy there, and his attention to Mr Cumberland and family while here, occasioned some to believe him secretly inclined to the interests of that country, but I believe without foundation, for I know that Mr Cumberland left this country much chagrined, and I believe he was the dupe of this gentleman's policy. I have had the satisfaction of being on very good terms with him for several months past, and have often expressed to him my hopes and wishes, that he might prove another M. Gerard in our affairs. His being employed in this negotiation is so far favorable to us as its successful issue interests his own reputation, and will be probably a step to further honors and employments, to which, as mentioned in my last, the public opinion destines him. I hope the Court is now serious in its intentions to conclude the negotiations, but it is still not improbable this business may be delayed until the fate of the campaign is known, unless it should be accelerated by the confirmation of news received from Cadiz last week, of the arrival of the Count de Grasse's squadron on the coast of Virginia, the consequent critical situation of the army of Lord Cornwallis, and the defeat of Lord Rawdon by General Greene.

I shall seize every opportunity of informing the Committee of the progress made in this important business, and am happy to find by a letter I have just had the honor to receive from Mr Lovell, dated the 15th of June, that my correspondence has contributed in any degree to the satisfaction of Congress, but am surprised, that so few of my letters have reached the Committee, for on reading the list of those received and comparing it with my letter book, I find several missing, which were sent by vessels from Bilboa and elsewhere, which I know arrived in safety to America, particularly my answer to Mr Jay's instructions to me at Cadiz, of which he sent only the state of the revenues and expenses of this country in the year 1778.

I am informed by letters from Holland, that Mr Adams has had a nervous fever, but that he is now in a fair way to recover. The South Carolina frigate sailed from thence with the ships under her convoy, the 19th ultimo. I hope their safe arrival will convey to Congress ample information of the situation of their affairs in that quarter; I am afraid the loan does not fill fast, because I have letters from a house at Hamburg which mention, that Congress bills to a large amount, that they had presented for acceptance, had been protested. The republican party gains ground, and the Duke of Brunswick, though not removed, is obliged to act with more caution, and the Stadtholder with more resolution and force. I am informed, that the Court of France has consented to replace the cargo lost in the Marquis de Lafayette, but Dr Franklin is not enabled to accept any more of Mr Jay's bills, even for our salaries.

The rumors of a general negotiation subside, owing it is said to the obstinacy of Great Britain, and the demands of this Court. The Imperial Minister has just received a courier from his Court, charged with its excuses for the detention of a Spanish courier, who after delivering his despatches to the Spanish Ambassador at Vienna, on his journey from thence to Petersburg, was stopped in Hungary, and not permitted to proceed until released by order of the Imperial Court. The Imperial Minister named to the Court of Berlin from hence, will soon go thither; his nomination is still a secret. The Spanish squadron has returned to Cadiz. Major Franks will leave this next week. I must do this officer the justice to observe to the Committee, that he has conducted himself with great discretion and economy here, and I hope that Congress will be induced by the success and expedition with which he delivered their despatches to Mr Jay, to send in future such as are important in a similar way.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, October 5th, 1781.

Gentlemen,

On my arrival here from St Ildefonso this day, I found the enclosed letters for his Excellency, the President of Congress, from M. Dumas. On the 14th and 28th ult. I wrote to the Committee, that the Court appeared more serious in its intentions of bringing on the negotiation than it had shown itself to be for a long time. In my last, I informed the Committee that M. Del Campo would, probably, be appointed to negotiate with Mr Jay, and that his instructions and nomination would have his Majesty's approbation on the night of the 30th ult. The Minister of State once proposed to intrust M. Gardoqui with this business. Yesterday, when I left the Sitio, the Court had not formally notified the appointment to Mr Jay, but from some hints I received from well informed persons, I have hopes that the communication will be made either before he comes from thence tomorrow, or directly after the Court is fixed at the Escurial. I shall, however, be very agreeably disappointed, if much progress is made in this affair until the fate of the campaign is known.

The last post from France and Holland brought no news of an interesting nature. The French and Spanish troops, destined to reinforce the Duc de Crillon's army at Minorca, are not yet embarked, and he cannot act with effect until he receives reinforcements. It is said the desertion from the place is considerable. The South Carolina frigate, armed for that State in Holland, has put into Corunna, and I am concerned to find by letters from Messrs Searle and Trumbull, passengers on board, that Commodore Gillon's conduct is much censured. Knowing Mr Searle's zeal and solicitude for the public interest, I must own that his letter has influenced my opinion in a great degree, but it would be unjust to condemn the former, before having seen an exposition of the reasons, which have determined his conduct, and which he has promised to forward to Mr Jay by express.

The fact is, he sailed from the Texel without the ships he had engaged to escort, that he has cruised six or seven weeks with little success, and that he has been obliged to put into the port abovementioned, to refit and get a supply of provisions, which he writes he shall do immediately. It is probable Mr Jay may think proper to send me to Corunna in this business, which commission, I must confess, I shall accept with reluctance, because I not only foresee the delay and expense that must inevitably have place, if this government is obliged to interfere, but the disgrace, which must ensue from the notoriety of these unhappy differences between the commander and the American gentlemen aboard. I have another motive, which arises from the nature of the employment with which Congress has honored me, and which, with submission, I conceive does not admit of my absence at the most important period of the negotiation, when most knowledge is to be acquired of the real dispositions and intentions of this Court, and when I may avail myself of the esteem and confidence with which the proposed negotiator has appeared to honor me for several months past. Although, for the reasons abovementioned, and for others which I could add, I may leave the Court at this crisis with reluctance, I shall, if directed, proceed to Corunna, and execute the trust reposed in me, with a zeal, assiduity, and activity, which, I hope, will always influence my conduct, when the public interest and reputation are in question.

I enclose a letter for his Excellency, the Chevalier de la Luzerne from the Count de Montmorin, whose talents and warm espousal of our interests, not only here, but at his own Court, entitle him to the approbation and esteem of Congress. I just hear that the Court has received advices from Buenos Ayres, dated the 7th of July. These are very agreeable. The rebellion mentioned in my former letters is entirely quelled, by the defeat and capture of the Indian chief at the head of it, and his principal officers, cannon, treasure, &c. &c. It seems two English officers are in the number of the prisoners, and that many letters and papers were found, which discover that the Portuguese excited and fomented these disturbances.[11]

The Havana fleet is expected daily. On its arrival, perhaps, the Court may do something for us. But I repeat again, that little is to be depended on in the money way. Letters from France talk of a large expedition preparing at Brest. Its object is a secret. I shall seize every opportunity of informing the Committee of what passes in Europe relative to our affairs, and, in future, will multiply the copies of my letters to ensure their safe arrival.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 17th, 1781.

Gentlemen,

On the 2d instant the pretended Ex-Jesuit, who made so much noise in the English papers last winter and spring, was arrested at the Escurial, where he arrived the day before from Lisbon, under an assumed name. Commodore Johnson sent him to Rio Janeiro, in order to pass from thence to the Spanish settlements in Peru. He pretended to the Portuguese Governor, that he had been taken by Johnson on his way to the Caracas, but the former from some suspicion arising from the man's appearance and story, refused him permission to pass into the country, which obliged him to embark for Lisbon, at which place under his borrowed name he addressed Don Ferdinand Nunes, the Spanish Ambassador, offering to make some important discoveries to the Count de Florida Blanca. The former advised the Minister of these offers, and was directed by him to furnish the person in question with cash for his journey. It is said, that he was recognized the very day of his arrival at the Escurial, by one who knew him at Buenos Ayres. It is more probable, that M. Nunes knew his real character previous to his departure from Lisbon, for the magistrate whom the Minister of the Indies employs on such occasions, went to the Escurial with his officers, the day he arrived there, and arrested him the same evening. He is now in close prison, and I am told has discovered all he knew relative to the designs of the English, to foment the spirit of revolt existing in that country. This affair furnished conversation to the Court the few days I resided at the Escurial, whither I went, at the instance of the French Ambassador, to Mr Jay to be present at the Besa Manos, on St Carlos's day.

I found by conversation with M. Del Campo, First Under Secretary of Foreign Affairs, that nothing had been done by the Court to advance the conferences for a treaty since it left St Ildefonso. In my letter of the 5th of October, I mentioned, that the gentleman abovenamed was nominated by the King to treat with Mr Jay; this nomination has never been formally communicated, but I had my information from such a quarter, that I am convinced the appointment was made, and the instructions given near about the time mentioned in my letter. Multiplicity of business, and the confusion occasioned by the Court's removal from one royal residence to another, are the present pretexts for this delay. The aspect of our affairs at the close of the campaign, the fate of which is yet unknown, and the apprehension of being obliged to make large advances in consequence of cementing their connexion with the States, are perhaps the real causes; to which may be added others of a different nature, though not less important to Ministers and courtiers.

The palace is filled with Irish attendants, of both sexes, whose animosity to us and our cause is as decided and inveterate as is their attachment to it in America. The Princess of Asturias has on several occasions, and lately in particular, treated such English as come here with much condescension and distinction. The last instance I allude to happened to lady Winchelson, and the Lord her son, who came from America, (where he commanded a regiment) to Lisbon for his health. They were accompanied by a Mr Graham and his lady, and sister, both sisters of Lady Stormont, and visited the Escurial in their way to France.

If the Ministers perceive any aversion in their future King and Queen to an alliance with us, they can easily find pretexts to retard it until they see their own justification in the urgency of the conjuncture, that may appear to have forced them into the measure. This however is but conjecture founded on the knowledge of some little incidents in the interior of the palace, and strengthened by the conduct of the Ministry, not only in the great object of Mr Jay's mission, but also in several minute particulars in which they might act to our satisfaction, without showing any marked partiality in our favor. So far from Mr Jay's having been yet able to obtain further succors, the French Ambassador has not procured the payment of moneys advanced in the month of May, by the Marquis de Yranda, to enable Mr Jay to discharge the bills due that month, although the Minister engaged his word to the Ambassador to repay this sum in equal monthly payments. In fact the Court itself is distressed, and with difficulty finds means to answer its own engagements.

I believe I may venture to write with some certainty on this subject, for I have been on an intimate footing with the person who has transacted for the Court the most part of its money negotiations for more than twelve months past. I knew and cultivated him before he was in favor, and my introduction of him to Mr Jay, procured him the commission on the payment of our bills, and a considerable credit in consequence of the sums supposed to pass through his hands monthly for this purpose. As he has been the founder of the paper system in this country, and as he is likely soon to establish a national bank, he will probably make some figure in the annals of this reign. His name is Francis Cabarrus, born in Bayonne, but sent early to Spain to acquire a knowledge in its commerce, in which his father was considerably interested. His marriage at the age of nineteen (he is now twentynine) displeased his family, from whom after that period he received no assistance. With a small capital, as he himself informed me, he came and established a soap-work in the neighborhood of this city. While there he introduced himself to the notice of the Count de Campomanes, by becoming a member of the patriotic society, the friends of their country; of which the last mentioned gentleman is in a great measure the founder. He soon conciliated his esteem, as well as that of the Governor of the Council of Castile, to whom he became known by means of his friend and patron M. Campomanes. Through their interest he procured a contract to supply wheat and flour, in a time of scarcity, and commenced banker. The last year he proposed his plan for procuring cash for government, on terms mentioned in former letters. His genius is brilliant, active, and enterprising, with more imagination than solidity, although he is by no means deficient in acquired knowledge, arising from reading and reflection, the result of experience. His eloquence, enforced by a very prepossessing countenance and figure, seizes the heart before it convinces the judgment, and this joined to his knowledge of commercial and money transactions, has obtained for him the confidence of M. Musquiz, who consults him at present in all affairs of finance.

I have thought proper to say thus much of this gentleman, not only on account of the part he has had, and is like to have in money matters, but because he has on all occasions manifested himself a friend to our cause, of which he is an enthusiastic advocate, being totally divested of local prejudices. He offered to procure five hundred thousand dollars for the States, payable at Havana on condition of being reimbursed by government in two years, the payments to commence at the expiration of two months after his orders for the delivery of the money to the agents of Congress were despatched. He will make the advances for the payment of the bills due next month, which amount to thirtytwo thousand dollars, and for the reimbursement of which Mr Jay relies on Dr Franklin, for after the delays we have experienced here, and the knowledge of their own distresses, there is no great reason to think this Court will grant us any considerable pecuniary assistance, unless a happy change in the situation of our affairs should precipitate a treaty, and lead them to extraordinary exertions, as proofs of their amity. The support of their fleet at Cadiz, of forty sail of the line, the sieges of Gibraltar and Mahon; their expensive armaments at the Havana, and the preparations making for an expedition from Europe to that quarter, which will sail next month, exhaust their European and American revenue, and all the resources by which they have hitherto obtained money.

The insurrections in Peru augment this expense, and the same spirit of revolt, which seems to have extended to Mexico, will add to it. These discontents have been occasioned by duties imposed since the administration of M. Galvez, the present Minister of the Indies. The project was proposed by Carrasco, Marquis de la Corona, to the Marquis of Squillace then Minister, who was much inclined to adopt it, and named the projector to visit Spanish America, in order to form on the spot the plan of its execution. He declined the mission on various pretexts, and another was appointed for this purpose, who died on his passage. M. Galvez, the present Minister of the Indies, succeeded him, and on his return to Spain made a report so agreeable to his Majesty, that it procured him the important post he now occupies.

The novelty of these measures, joined to the vexations and impositions occasioned, as is said, by the collectors of them, has created much dissatisfaction in these countries. I have my information from some of the principal natives of Mexico and Peru here, and also from a foreigner, who obtained permission to visit Mexico, and who made the voyage from motives of curiosity. Four thousand troops are to be embarked at Cadiz for the expedition abovementioned, and it is said will be escorted by four vessels of the line, who at the same time convoy the register ships bound to the Havana and Vera Cruz. As this convoy will sail about the same time that the expedition from Brest will be ready for sea, it is probable they may form a junction. Ten thousand troops are to be employed in the one last mentioned, and I am told will sail escorted by twenty sail of the line. Part of which will probably join the grand fleet at Cadiz, and the rest proceed to the West Indies, where I have reason to think they will act in concert with the Spaniards. A friend of mine is to embark on board the French fleet as interpreter. He speaks and writes the Spanish language perfectly.

I have also some reason to believe that the French naval force, and a larger body of troops than they have yet sent to America, will appear on our coasts earlier the next, than they did the present year. Jamaica is thought to be the first object of these expeditions, and this conjecture arises from the appointment of M. Galvez to the command of the Spanish force in the West Indies, whose project for attacking that Island is well known. In France, it is said that a part of the troops to be embarked at Brest, is intended for the East Indies; and here, that theirs are sent to suppress the revolt at Santa Fé, mentioned in my letter of the 17th ult.[12] I rather think that two French ships of the line, now at Cadiz, and as many frigates, who have taken and are taking in provisions for a long voyage, are destined to the eastern part of the world, and that they will take with them a considerable sum in dollars, for the payment of their land and sea forces there. The French Ambassador has obtained, or is about to obtain, permission to send out of the kingdom two and a half million of dollars, part of which sum is probably destined to the purpose above mentioned.

The sieges of Gibraltar and Mahon go on slowly. The operations against these fortresses have not been so vigorous hitherto as to promise a speedy reduction of either; when the efforts of these besiegers become more interesting, I shall transmit regular accounts of their progress. The Court of Great Britain proposes to send five hundred troops to America, exclusive of recruits, to be drawn from Germany and Ireland. These it is said, will sail with thirteen sail of the line in the course of next month. The East India Company also send a reinforcement of seven thousand men to the East Indies, with four sail of the line. If this information can be credited, the East and West India, and American reinforcements will sail at the same time, to insure by their united force their safety on the coast of Europe.

In Holland the divisions are still great, and likely to be so. The Provinces have not yet all agreed to the loan proposed by France for the use of Congress. I am informed the Stadtholder's friends give it all the opposition in their power. That Prince has, as I have already advised the Committee, been obliged to consent to the augmentation of the marine. The news of the birth of the Dauphin will probably reach America before this letter. It is expected it will be received there with demonstrations of satisfaction that will be highly flattering to the French nation. The great age and infirmities of the Count de Maurepas, render it probable that he will not survive the winter. The Queen's influence, it is thought, will increase by the birth of the Dauphin, and the death of this Minister. Permit me to conclude with the flattering hopes of a brilliant close of the campaign, which the well concerted plan of our General and allies communicated to me by the Count de Montmorin, renders highly probable. The success of this operation, and what is expected, may perhaps render Mr Jay's next information more agreeable and interesting to Congress, to whom I beg leave to present my humble respects.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

ROBERT R. LIVINGSTON TO WILLIAM CARMICHAEL.

Philadelphia, December 20th, 1781.

Dear Sir,

Your letters of the 16th of August, and 5th of October, came to hand. They were read in Congress, and handed over to this office, which will in future, agreeably to its institution, receive and make all communications to and from Congress, conformable to their ordinance, of which I enclose a copy, having omitted it in my letters to Mr Jay. The importance of early and regular intelligence from Europe is so much felt here, that you have full credit for all the communications you make. I wish you would extend them so far as to permit no vessel to sail without letters and papers. Spanish gazettes may sometimes be serviceable to us.

The expedition of the Duc de Crillon is important in many views; should it succeed, it will be such a blow to the British as must hasten a negotiation, though it may probably obstruct a peace; at any rate, the possession of the Island must cut the sinews of their Mediterranean trade. Your apprehensions about being sent to Corunna, will, I hope, have been groundless, as Captain Gillon's ship is not the property of, or under the direction of the United States. So far as Mr Jay's good offices can be serviceable, they undoubtedly will be extended. He will not think himself obliged to involve the United States in the expense or disgrace of Captain Gillon's misconduct, if, as is alleged, he has really behaved improperly. Should he determine to interfere, Congress make no doubt but you will conform to his intentions; and they rely upon your zeal and activity in the discharge of such trusts, as he may think proper, since he alone can judge of the best application of them, and will not deprive himself of the advantages, which your assistance and information may afford, without being determined by weighty and important considerations.

It gives great pleasure here, to hear of the step that Spain is taking, for opening a treaty with us. The delays in that business begin to be resented by the people of this country, the more forcibly, as they felt a high degree of respect for the Court, and much attachment to the people of Spain, in return for the good offices that they had done them. The great cause of the delay being now (as we hear) removed, I doubt not that the candor of the negotiators, and the clear views that they both have of the interest, which Spain and America may mutually derive from an intimate union, will remove all other difficulties to the wished for connexion.

We have no other news on this side the water, than that the enemy have evacuated Wilmington. You, who know the spirit of disaffection which prevailed in some parts of North Carolina, and the commerce which it is capable of carrying on, particularly at this time, in articles for the supply of the West India markets, will see the important sacrifice the enemy have been obliged to make in thus quitting this post, and abandoning the only friends in America, upon whose fidelity and attachment they could rely.

I need not repeat to you, that I shall at all times think myself happy in hearing from you, independent of the advantage that the public may derive from your letters. They will be particularly agreeable to me, as they may be made the means of increasing the number of friends, which your zeal and attention has already procured you.

I am, Sir, with great esteem, &c.

ROBERT R. LIVINGSTON.

TO ROBERT R. LIVINGSTON.

Madrid, December 20th, 1781.

Sir,

Since my letter of the 17th ult. to the Committee of Foreign Affairs, I have had the pleasure to hear of your appointment to the office of Secretary for that department, and although I have not any official directions, respecting my future correspondence, in consequence of this change, I take the liberty of addressing you as I have hitherto done the Committee, on the subject of our affairs here, their situation, and that of the powers with whom we have, or may hereafter have, connexions. At the same time permit me to entreat you, Sir, to inform me, whether it is judged necessary, that I should continue this correspondence, having done it hitherto with a view to multiply the channels of information to Congress, and not from an expectation of conveying any material intelligence, which they will not ultimately receive in a fuller manner from Mr Jay and their other Ministers; to the former of whom I communicate instantly every information I can procure here, or by my foreign correspondence. I have been induced to continue this correspondence, from another motive, which is, that I find that others employed as secretaries here, are directed by their respective Courts, to write either to the Minister for Foreign Affairs, or the particular Secretary of their Sovereigns. The only letter, which I have had the honor to receive from Mr Lovell, since I have been in this country, approved of my endeavors to communicate early and regular information; but if it is expected I should do it effectually, I hope a cypher will be sent me, by the first safe conveyance, under cover to Mr Harrison at Cadiz, or to our Consul in France, with directions to those gentlemen to forward the letter enclosing it, by a sure hand, to escape the inspection of the post-offices in France and Spain, the dread of which often retards my letters, which I am now obliged to send to the sea-ports, by private persons, or the couriers of the French Ambassador. Once possessed of a cypher, I flatter myself that few vessels will sail from France or this country without letters from me, which, although often not interesting, may yet in some degree contribute to the satisfaction of Congress.

Our affairs are in much the same situation they were when I had the honor to forward the above mentioned letter to the Committee. M. Del Campo's sickness, from which he is but just recovered, is the occasion or pretext for this delay. His appointment, however, has been finally announced to Mr Jay by the Minister, and was made at the time mentioned in my former letters. It is probable that little will be done in this business, until the Court goes to the Pardo the 7th of next month. A principle of delicacy perhaps prevents it from seeming at present to precipitate its conduct, in consequence of the favorable aspect of our affairs, since the news of the capture of Lord Cornwallis, and the victory obtained by General Greene in South Carolina. But the delay attending the transaction of the smallest affair in this country, is a sufficient reason to account for the difficulties Mr Jay encounters at present, without surmising other motives. On this subject, I speak from the experience of almost all the corps diplomatique, as well as from the authority of individuals, who have much business with the various branches of administration.

The news above mentioned, was received apparently with great pleasure by the King and Prince of Asturias, as I was informed the same day by several of their officers in waiting. The public at large was highly satisfied, and has spoken more favorably since of our allies, than it has done from the commencement of the war. The foreign Ministers were not all so well pleased with this event, particularly those of Germany, Russia and Denmark. However, in general they regard it as a blow which decides the Independence of the States. The new Minister of Sweden is open in declaring his partiality for our cause, and signified that he would have waited on Mr Jay on his arrival here, as it is the custom of those last come to do, if no other Minister had arrived here since Mr Jay's residence, who had not done it. His conduct to myself shows that this was not a mere compliment, for he has invited me several times to dine with him, and visited me. He is a particular friend, I believe, of M. Marbois, for he speaks highly of him, as indeed all do, whom I have conversed with, that have the pleasure of his acquaintance.

The Imperial and Swedish Ministers declare that their respective Sovereigns will reclaim all vessels under their colors, going to or returning from America, which comply with the articles of the armed neutrality, and it has been hinted to me, that it was not difficult to obtain letters of naturalization for the crews of American vessels, provided the nominal officers are subjects of either country. The Court has at length consented to repay the money advanced in April last by the Marquis de Yranda, but has not enabled Mr Jay to pay the bills due this month, and as Dr Franklin has not authorised him to draw, M. Cabarrus, as I expected in my last, has consented to advance the sum sufficient for this purpose, amounting to thirtytwo thousand dollars. Perhaps Dr Franklin may soon enable Mr Jay to repay him.

Thirty thousand pounds sterling would pay all our debts here, which distress us more than the apprehension of not receiving our salaries, of which, though liberal, we have constant need, owing to the dearness of everything in this country, and the great expense incurred by the frequent change of residence of the Court, which circumstance obliges us to take lodgings at the royal residences; and which expense, the frequent journeys that we were constrained to make on account of our other business in Madrid, greatly augment. I should not touch on this subject, if Dr Franklin had not desired me to mention to Congress our personal difficulties and distresses, for I believe, with all the desire he has to serve us, he procures with difficulty sufficient funds for the payment of our salaries.

The expeditions mentioned in my former letters, are now both probably at sea; that from France sailed the 10th instant, and I know of a certainty, that orders have been sent to Cadiz to hasten the departure of the ships and troops at that post. The French ships there, mentioned in my last, take on board a million of dollars, and M. de Bussy, who formerly signalized himself in the East Indies, has gone thither incognito by land, accompanied by several officers, who have but lately returned from the East. It is therefore highly probable, that these vessels, joined by others, go thither, and will take under their escort a part of the troops embarked at Brest.

No great progress is made in the sieges of Gibraltar and Mahon; on the 27th ult., the enemy made a sally from the former place, in which they did more damage, than has been published here, having completely ruined the advanced works of the besiegers, the repair of which will require some time and much money. At Mahon, the rainy season has retarded the operation of the assailants. I am just told the Duc de Crillon demands a reinforcement of two thousand men, which will be granted to him. The enemy receives small succors from time to time by sea. The Court is about to negotiate another loan, in which if it does not succeed, perhaps it must have recourse to another emission of paper. The treasury is at a low ebb. The Minister of Marine demanded lately ten millions of reals, and received but three. The credit of the paper has lately risen, it is not negotiated at one and a half per cent loss.

A plan for a national bank, is at present before the Council. The projector, M. Cabarrus, proposes to form a capital of fifteen millions of dollars, of which he offers to procure six millions; each action to amount to two thousand reals, for which the proprietors receive a certain interest of four per cent, with the profits expected from this establishment; I have seen the plan, but had not permission to copy it, so that I can give but a faint sketch of it. Eight directors are to be chosen the first year, and six annually, by the assembly of the proprietors; two of these directors are to be perpetual, because it is proposed, that they should have the direction of the supplies for the army and navy, with an interest of ten per cent, to the emolument of the bank; these two directors are to be named by the Court, out of four chosen by the proprietors; in other respects the Court to have no influence. If this plan, which was originally a part of the scheme for the circulation of paper here, should succeed, the paper which will be discounted by it, will probably preserve its credit. The Gromios, companies possessed of exclusive privileges, will be annihilated, and much money, now dormant in the coffers of individuals, be called into circulation. The Gromios pay two and a half per cent interest, and the bank four, which difference, joined to the hopes of farther profits, will tempt the money-holders to withdraw their funds from the hands of the first, and place them in the latter. But these companies and their friends, oppose it strongly, as do also the persons employed in supplying the army and navy, with whom, it is said, people in various departments of Government have interested connexions.

The Courts of France and Spain seem determined to continue the war with vigor, and you will see by the King of Great Britain's speech, that he is not disposed to accommodation. The Empress of Russia still continues her endeavors to bring about a peace between England and Holland, to which the British Ministry has lately appeared to listen, although in a haughty manner. I am told the republican party is more exasperated than ever, by their answer to Russia, which is published. But your information will be much more accurate from Mr Adams, than any that I can procure. My correspondents from France write me, that the nation is much elated by the late triumph of the allied arms. This success, and the flourishing state of their commerce, reconcile them to the war, the continuance of which their Ambassador here regards as inevitable.

The resolution of Congress, prohibiting all intercourse between the citizens of America and the subjects of Great Britain, gives a secret satisfaction both in France and this country, and augments the jealousy of others, that the influence of France will exclude at the peace all amicable connexions between the States and Great Britain, at least this is the language of several of the foreign Ministers and their families. The Imperial Ambassador has lately made representations on account of an ordinance rigorously executed of late in the ports, obliging all captains of vessels to make an oath, declaratory of the contents of all packages, &c. &c. on board their vessels. He has endeavored to make this a common cause. The commerce murmurs against this, and other regulations lately enforced. It must be confessed, that Spain seems desirous to discourage all commerce carried on by foreigners, and bears as hard on their allies as on neutral nations. Whenever a peace takes place, France will be constrained to make a new convention on this subject. At present, this Court feels its importance, and the cabinet of Versailles has points of a nature so much more interesting to carry, that it takes little notice of the breach of conventions actually subsisting. By a late ordinance of the Minister of Finance, a duty of twentyfive per cent was imposed upon all produce brought in American vessels from the Havana. Mr Jay has made representations on this subject, which, I hope, will be attended to. M. Galvez appeared well disposed to withdraw them. It appears also to be the intention of the present Minister, to diminish the consumption of salt fish, to pave the way, as their friends give out, for its total exclusion at the peace, unless cured and imported by the natives; for this purpose, they have obtained bills of indulgence from the Pope, permitting the use of meat during Lent, and on other days on which it was prohibited. The price of these indulgences is proportioned to the rank of the purchaser. It is calculated, that the sale of them in the Spanish dominions will produce two millions of dollars annually; so that a double advantage is derived from this operation, the extraction of money for fish is prevented, and the revenue considerably augmented.

The present Ministry seem firmly established in their respective posts. The Count de Florida Blanca's health does not permit him to give constant application to business, but is not of so dangerous a nature as to cause any apprehension. The Ministers of the Indies and Marine keep their ground in the King's favor, although they have many enemies. If the disturbances in America should increase, the credit of the first may be weakened. The latter, although disliked by his colleagues and disapproved by France, preserves the Sovereign's good graces. He has one merit, which is his constant attention to the safety of the Spanish fleet, a merit that may fix him in his place, but which renders him odious to the nation and its allies, who wish to see it more actively employed.

I am afraid these particulars may appear trivial to Congress, to whom I should be happy to make more important communications; these are not to be obtained but by the dint of money, or by a long residence and intimacy with persons in the various departments of government. The first we have not for the most pressing exigencies, and the latter, our at present doubtful situation at this Court precludes us from in some degree; although neither attentions nor endeavors have been omitted to make useful acquaintances.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO ROBERT R. LIVINGSTON.

Madrid, December 24th, 1781.

Sir,

Yesterday Mr Jay had an audience of his Excellency, the Count de Florida Blanca, in which that Minister in the most express terms assured him, he might depend on receiving three millions of reals to pay such bills as he had already accepted, this sum, with near eighteen thousand dollars received already, and twentyfive thousand promised by the Court of France, will fully answer this purpose, and I still hope ways and means will be found to furnish funds for the bills, which have not yet been presented, and which, for some weeks, come to hand slowly. The Minister also promised his good offices with the Court of Portugal, and informed Mr Jay, that previous to his application, he had endeavored to induce the Ministry of that nation to conduct itself with respect to the States, in a manner more agreeable to the rights of humanity and the law of nations founded on those rights, but that the party in favor of Great Britain preponderated hitherto.

I have had opportunities of speaking several times on this subject to the Secretary of the Embassy of Portugal here, and once to the Ambassador. Each seemed sensible of the injustice of the first step of the Court, and owned it more easy to do an injury than to repair it. If the Congress should be in a situation to make strong representations to that Court, with a recapitulation of the conduct of the States during the whole war in respect to Portugal, they may be possibly attended with success, particularly if they should accede to the armed neutrality, to which they are strongly pressed by Russia at present. The Minister also engaged to do justice to certain Americans who carried a British privateer to the Canaries, and, in short, seemed exceedingly well disposed to render the States every service in his power. I cannot forbear, however, mentioning to the Committee, that he spoke with much chagrin of the adherence of Congress to points, which, in his opinion, rendered a treaty impracticable for the present, and although pressed on that subject by Mr Jay, I doubt whether he will give his sentiments thereon in writing. He also seemed exceedingly apprehensive of the efficacy of the means employed by Sir H. Clinton, to sow jealousy and discord among the States, and even in Congress, and said that the letters lately received by the British Court from the officer abovementioned, gave great hopes of success in this particular. In fine, he assured Mr Jay, that considerable sums of money would be employed for this purpose, and as I am convinced this Court received its information from a person equally employed by that of London, I fear it will be difficult to remove these suspicions until time shows how ill founded they are.

In the meantime, unanimity and force in America are the best arms of the States there, and their best arguments in Europe. To which, if much complaisance to the Spanish King and nation is added, even in objects not essential, the Congress will enable their servants to defeat the designs of the British emissary and their party here, so long as the present King lives. According to present appearances, the war is likely to continue. Although I have already written you particularly on the subject, I now repeat, that the Court is in the way of negotiating its loans for the expenses of the ensuing year, and that it expects some treasure from America. At Cadiz, they have twentynine sail of the line ready for sea. The blockade of Gibraltar is continued with tolerable success hitherto. The Count d'Estaing was not arrived in France by the last advices. This delay will retard the operations intended for our succor.

The death of the Empress Queen will probably kindle the flame of war in Europe, though perhaps not in the ensuing year. I am told from good authority the Emperor is favorably disposed to England. His Ambassador and Mr Cumberland are very intimate, and see each other every day. The residence here of the latter is extraordinary in the present situation of the two nations, and can only be accounted for on the principles, which I had the honor to mention in former letters. If I may be allowed to conjecture, I think Holland will be sooner or later involved in the war, and that orders have already been given by the Court of England to attack their possessions in the East Indies. This however is but a conjecture, although grounded on some share of political evidence.

The British Parliament is prorogued to the 23d of January. Their grand fleet is at sea. Mr Trumbull has been arrested in England, and several Americans obliged to fly and abscond, among whom there is one of my correspondents. I have received advice, that several were included in the number to be arrested, whom it was not the intention of Government to seize, in order to give them an opportunity of returning to America with more eclat, to be in a situation of rendering greater services to Great Britain. I hope this advice is without foundation, but having received it, I think it my duty to communicate it, because circumspection can do us no material injury. M. Gardoqui will scarcely take his departure until all negotiations are at an end, and the campaign shall have commenced.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. Sir Joseph Yorke has presented another Memorial to the States, more insolent than the former. The armed neutrality propose to have forty sail of the line next spring in the ports of Holland.

W. C.

TO ROBERT R. LIVINGSTON.

Madrid, February 18th, 1782.

Sir,

I have just had the pleasure of receiving your letter of the 20th of December, and seize the earliest opportunity of acknowledging the satisfaction I feel in the hope of a more regular correspondence than I have hitherto had with your department. The moment I was informed, indirectly of your appointment, I did myself the honor of addressing you. My first letter was dated the same day you wrote the one above mentioned. On the 24th ultimo, I again solicited your attention, and as I sent quadruplicates of these letters, I think I may venture to refer you to their contents, for accounts of the state of affairs, and the general intelligence at the time of writing them.

I find by your letter, that mine written in the month of September, had not reached Congress. I sent three copies via Bilboa, by the Captains Tracy, Cook, and another, whose name my correspondents omitted to mention to me. I have had the mortification to hear lately, that these vessels were all taken on the coasts of America. The fourth copy was sent from France, so that I still hope it may have escaped the misfortune of the others. Nothing gives me, or can give me, more pleasure, than the idea of contributing to the satisfaction of Congress, while I fill a duty, which a sense of their confidence, and a desire of meriting a continuance of it imposes on me. I am only sorry, that my abilities and opportunities do not correspond with my wishes, to render my communications more useful. I have already requested you in the letters above mentioned, to point out the line of my duty.

I am infinitely obliged to you for what you mention with respect to my apprehension of being sent to Corunna, and having your sanction to direct my conduct in future. I shall implicitly follow Mr Jay's directions, should he even choose to send me as a courier to be the bearer of despatches to the sea-ports. The reason assigned in your letter, joined to others which I had the honor to mention in mine to the Committee, were such as I suggested when I expressed a reluctance to be employed with discretionary powers in this business. I was prepared however to execute Mr Jay's orders, but I believe ulterior reflections, and the advice of the French Ambassador, induced him to relinquish the idea of sending me.

I have no cypher from Mr Morris and have seen none from him. I must therefore again request you to forward me one, under cover to Messrs Barclay and Harrison, with directions to those gentlemen to forward your letters by private hands, and not by the post, for I fear that one you sent to Mr Jay has been intercepted. No delicacy is preserved by this Court on this head. This practice is not confined to us, but extends to the correspondence of all the corps diplomatique. It has happened, that in the hurry of resealing letters thus examined, papers belonging to the department, in which they were opened, have been carelessly enclosed by the Secretary, and returned to the Minister by the person to whom the letters were addressed. Without a cypher it will be impossible for me to be so punctual as may be expected, for at present I am obliged to send most of my letters by private hands, or by the French Ambassador's couriers to the sea-ports, which circumstance often retards their arrival in America.

Our situation with respect to money matters is still critical. The drafts which Dr Franklin is obliged to pay are so frequent, that he has not been able to obtain cash to enable Mr Jay to discharge the bills accepted by him here, for which M. Cabarrus, as has been mentioned in former letters, is nearly forty thousand dollars in advance. Happily there are few bills due until the middle of next month, which will give Dr Franklin time to endeavor to save our credit here, and to this Ministry to reflect on the consequence of denying us this small succor. The Count de Florida Blanca has been lately solicited on this subject by the French Ambassador, and without giving hopes of affording the sum demanded, he promised to do what the urgency of their own wants permit him to do for us. In this conversation he appeared dissatisfied, that Congress had taken no notice of the desire he had expressed of obtaining one of the vessels constructing in the Eastern ports, for the United States, and complained, that no returns had been made by the States to the proofs the King had manifested, of his favorable disposition towards them. In fact their own necessities are evident.

In addition to what I have heretofore mentioned on this head, I have lately been informed from good authority, that a person to whom the Crown is indebted twelve millions of reals, in order to obtain payment, has been constrained to propose to purchase the salt belonging to his Majesty, to the amount of twentyfour millions of reals, for the payment of which, after deducting the sum due to him, he is obliged to advance immediately five millions of reals, although he has little hopes of disembarrassing himself shortly, of such an immense quantity of an article, for which there is little demand at present. The Minister, to soften the harshness of his refusal to make further advances, informed the Count de Montmorin, that M. Del Campo's instructions would be ready in a few days, and that Mr Jay might then commence his conferences on the subject of the proposed treaty. If I may be allowed to hazard a conjecture again on this subject, I must repeat what I have often mentioned already, that Spain seems desirous to retard this business until a general treaty takes place. Perhaps it may not be unworthy the attention of Congress, to prepare eventual resolutions should this prove to be the intentions of the Court.

Since commencing this letter, we have the agreeable news of the capitulation of Mahon, in twentyeight days after the trenches were opened. The garrison are prisoners of war, and, including sailors, &c., amount to two thousand six hundred men. Sickness, which reduced their number of effective men to one thousand three hundred, unwholesome provision, fatigue, and despair of succor, are the motives assigned by the Governor, for the surrender of this important place, which has cost Spain two hundred killed, and three hundred wounded. The joy of the Court is excessive. The Count de Florida Blanca has the merit of having planned this expedition. It is said, the fortifications are to be entirely ruined, and the port rendered incapable of receiving large vessels. The officer charged with the despatches, announcing this event, accuses our allies of having shown a backwardness and reluctance to assist in this siege, which has excited much indignation here. The Princess of Asturias said publicly at dinner, that the Spaniards had taken Fort St Philip's in sight of four thousand spectators, (meaning the French troops.) I had this from a foreign Minister who was present. I am persuaded the charge is without foundation, but still it will have a bad effect, and augment a national animosity, which prevails too much already.

It is probable that the siege of Gibraltar will now be pushed with more vigor. It is the King's favorite object, and the Duc de Crillon, I know, is of opinion that it may be taken. His late success will give weight to his opinion. I have been told that the Irish who obtained permission to return to the sea-ports, after being exiled from thence for several months, will again be ordered to quit them. This circumstance induces me to believe, that strong efforts will be made to take Gibraltar. The Spanish fleet has returned to Cadiz, where it will not remain long, the magazines being abundantly provided, and although there is no great number of workmen, or docks, for the repairs of vessels of the line, yet as few of the vessels have suffered in their cruise, these inconveniences will not be felt. The Count de Guichen was ready for sea the 28th ultimo, and only waited for a wind. His fleet consists of ten sail of the line, which has under its convoy fifty sail of transports; five of the first mentioned are destined for Cadiz, to join the Spanish fleet, which will then be superior to any the enemy can assemble in the seas of Europe. Admiral Rodney was still in the Channel the 22d ultimo, and will probably push for the West Indies, without any transports; the convoys for the West and East Indies, and America, not being yet in readiness. It is said that great reinforcements are to be sent to these quarters. Lord George Germain, it is said, will resign, and be succeeded by Mr Ellis.

The Russian and Imperial Ministers, still interpose their good offices to mediate a peace. The neutral Ministers say here, that Lord Stormont, in a late conversation with the first mentioned, declared with heat, that his Sovereign would treat with France on the subject of our independence, when a French army was in possession of the Tower of London, and not before, and that they would negotiate with Spain for the cession of Gibraltar, in exchange for the city of Madrid. I should not commit this extravagance to paper if I had not heard it mentioned by the Count de Montmorin, and other Ministers.

Mr Adams has demanded a categorical answer from the States-General to the proposition made them on behalf of the United States. The Dutch Secretary here informs me, that his letter was well received. The Dutch Minister at this Court has invited me to his house, since the presentation of the above mentioned demand. I have lately had conversation with the Swedish Minister, which I hope will enable me two months hence to give you some information of the disposition of his Court. This Minister is exceedingly well disposed to forward a connexion between Sweden and America, as is the Baron de Ramel, formerly Minister here, now Vice Chancellor of Sweden, to whose good offices I believe I owe the countenance and civilities of its representative here.

The cedula for the bank will appear shortly. I shall take care to forward that, and any other paper that I think worthy your attention. I have sent the Madrid Gazette to Mr Harrison, and have desired him to forward it in future. This gentleman is every way deserving your esteem and notice. He acts at present as Consul for America at Cadiz, and has been very useful there. His good sense and agreeable manners, have acquired the good will of natives and foreigners.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO ROBERT R. LIVINGSTON.

Madrid, February 27th, 1782.

Sir,

I did myself the honor of addressing you the 18th instant, which I enclosed in the first copy of this. My letter of the 18th contained all the intelligence of the state of our affairs in Holland, which had come to my knowledge. My mind now is full of another object, for I have the mortification to inform you, that unless Mr Jay is enabled by Dr Franklin in a few days to pay the drafts he has accepted, he will be obliged to stop payment. I am persuaded the latter has done everything in his power to extricate us from this cruel situation, but he has had so many other bills to answer, and France is itself so pushed for money, that hitherto he has not been able to succeed, nor indeed to pay us regularly our salaries.

This Court has at length consented to pay us the balance of the three millions, promised last year, which amounts to near twentysix thousand dollars, but this money is in some sort appropriated to the repayment of the advances made for two months past, by M. Cabarrus, who, after the conversation he has had with the Minister, is discouraged from making equal advances. Less than twenty thousand pounds sterling would now pay all our debts in this country. I shall not despair until the bills are refused, although after what we have experienced here, I have little ground to hope. The Count de Florida Blanca has engaged to take such measures, as that Mr Jay shall not be personally exposed, which, without the interference of the Court, might be the case, as he is not acknowledged in a public character.

Mr Jay has not yet received any notice, that M. Del Campo's instructions are ready. That gentleman has now been near four months named for this business. It is now confidently asserted, that the works at Mahon are to be destroyed. Two ships of the line, and two frigates, have sailed from Cadiz, to escort the transports with troops from Minorca, which, it is said, are to be employed in the siege of Gibraltar. I know of a certainty, that the Court has given orders, to amass considerable sums of money in Andalusia. The Count de Guichen sailed on the 10th instant, and we expect every day to hear of his arrival at Cadiz, with five ships of the line. The English East India convoy sailed the 26th ult., and consists of six ships of the line, a frigate, and nineteen transports and ships of the Company. The letters and papers I have received the last posts from France and Holland, assert that since the arrival of Lord Cornwallis and Arnold in England, the king is resolved to continue an offensive war in America at every hazard. As this intelligence corresponds with the character of the king, and the officers above mentioned, some credit may be given to it. It has been asserted in the English papers, that the king of Great Britain was negotiating as Elector of Hanover with Saxony, to take into pay ten thousand of its troops, to replace the like number to be drawn from Hanover for the American war. The Chargé d'Affaires of Saxony at this Court assures me that this is false.

It is expected by the friends of America, that preparations will be early made, to repel every attack the enemy may be in force to make, and if occasion presents, to act offensively. I have nothing to add to this or my last, but that a copy of each will be delivered to you by Colonel Livingston, whose zeal, abilities, application, and prudent conduct, have acquired him general esteem, and have made his departure regretted by all who had the pleasure of his acquaintance. Mr Vaughan, who accompanies him, was strongly recommended to me by Dr Franklin, and I have found him every way worthy of his recommendation. These gentlemen will be able to give more ample details of general intelligence, than I can do by letter, and of a later date than this.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO ROBERT R. LIVINGSTON.

Madrid, April 14th, 1782.

Sir,

A violent defluxion of the eyes, which was epidemical here this winter, incapacitated me for near three weeks after the date of my last from writing, and the perplexed and uncertain situation of our affairs here for some time past, induced me not to do myself the honor of addressing you, until I could inform you in what manner our difficulties were likely to have a period. Indeed, during this interval, my time was so much engaged by the bills of exchange accepted by Mr Jay, and the conversations I held with, and the visits I was obliged to make to the various persons interested in this affair, that I had very little leisure left for other occupations.

On the 27th of February, I expressed my apprehensions for the fate of our accepted bills, although I could not but hope, that either this Court or that of France, would interfere in time to relieve us from this cruel mortification. Whether this Court withheld its aid, from expectation that the French Ambassador was secretly instructed to assist us, as on a former occasion, in case of extreme necessity; whether their wants, which are pressing, occasioned their indecision; or whether it was produced by the secret influence and artifices of ill disposed persons, I will not pretend to say; but the fact is, that notwithstanding the frequent representations of Mr Jay, and as frequent good offices of the French Ambassador, the Minister did not, until the day before Mr Jay found himself under the absolute necessity of protesting the bills, authorise verbally the Count de Montmorin to inform Mr Jay, that if M. Cabarrus persisted in his former intentions of making the necessary advances, he would see him repaid in ten or twelve months, to the amount of forty or fifty thousand current dollars. It must be observed that this consent was given the day after M. Del Campo had been informed by M. Cabarrus, at his own house, of the terms on which he would make the advances in question. These terms were different from those he had frequently repeated to Mr Jay and myself, and which Mr Jay made known to the Minister; but I believe the conversations with the latter, had excited apprehensions of his not being reimbursed even in the time he had originally proposed.

These apprehensions were augmented by finding that the French Ambassador was not authorised to extricate us from our distress, although the Court of France was apprized of our situation. I early remarked these fears, and endeavored to remove them by every means in my power. I was clearly of opinion, however, that after the conversation, above mentioned, with M. Del Campo, no reliance could be placed on his assistance for our relief, and informed Mr Jay of my conjectures on this subject, as I had done from the first moment I discovered M. Cabarrus's fears and apprehensions. This disappointment, constrained Mr Jay to protest a number of bills, some of which the holders had the complaisance and indulgence to keep by them near three weeks, in order to give time to Mr Jay to make arrangements for their payment. Indeed, the whole commercial interest here, behaved in a manner that scarce could be expected from persons who have so little connexions with our country, and expressed their indignation and astonishment, that the Court should expose to this mortification, for a sum so trifling, a country united with them against a common enemy. The foreign Ministers were not less surprised, and this incident, I believe, furnished materials for their despatches at the time, and has occasioned much conjecture since.