THE CORRESPONDENCE OF WILLIAM CARMICHAEL.

TO THE COMMITTEE OF SECRET CORRESPONDENCE.

Amsterdam, November 2d, 1776.

Gentlemen,

Previous to your attention to what follows, it will be necessary for you to know that I have lived with Mr Deane since his first arrival at Paris; that I took that city in my way from London to Nantes, to find a passage to my native country, and with despatches, which Mr Arthur Lee intrusted to my care, for the honorable Congress. Having a relapse of a disorder, which prevented me from travelling, I stopped at Paris, and endeavored to find out, by means of Count d'Estaing and other persons of eminence, the sentiments of the French Court respecting our affairs; and the moment I knew of Mr Deane's arrival, offered him all the services in my power, and, of consequence, we have lived together until the 10th of the present month.

At that time the agent of the King of Prussia, who had often, as Mr Deane has informed you, made proposals of a commercial nature, expressed a desire that some American would go to Berlin, and this he gave us to understand was at the instance of his Sovereign, who wished to have a clear idea of the nature of our commerce, and expressed a curiosity, which he wished to gratify, by a minute detail of our affairs. Mr Deane thinking this an opportunity not to be neglected to interest a Prince, who for several years has been dreaming of making his port of Emden, an Amsterdam, proposed it to me. However unequal to the task, I have cheerfully accepted it; happy to find any opportunity of showing with what a fervent zeal I am devoted to the glorious cause, which, at present, by interesting their humanity as well as policy, gives us so much consequence in the eyes of Europe.

Here I have endeavored to engage merchants to speculate in a direct commerce to America, to find out the sentiments of the people in general respecting us, to know whether, in case of necessity, the United States would be able to negotiate a loan, whether England would be able to obtain further credit, and by this barometer of the ability of Princes, to discover their present situation. On these heads I have written Mr Deane, but having an opportunity by the way of St Eustatia, and thinking none should be neglected of giving information, though mine, perhaps, may not be of importance enough to merit that title, I have taken the liberty of addressing the honorable Committee. Arriving but two days after the accounts had reached this city, of our misfortune on Long Island, I found many, even of the sanguine friends of America dejected, and those of England almost in a frenzy of joy. In this disposition, it is easy to judge, no hopes could be entertained of engaging merchants in a direct trade. I find they have the greatest inclination to serve us, and at the same time themselves, for no people see their interests clearer, but their fears that we shall be subdued, the confident assertions of the friends of England confirming these apprehensions, the prodigious sums they have in the English funds, with this unlucky business at New York, all conspire to prevent direct speculation.

As my letters from Paris introduced me to the first houses here, I have had the best opportunity of knowing their sentiments, and I can venture to say, that with many who are apparently adverse to us, it is interest combating with principle, for insulted, searched, and plundered as the Dutch were the last war, and are at present, there are individuals who by no means want sensibility to feel, though the public wants spirit to resent the injury. The States have, however, in answer to a fresh remonstrance of General Yorke, declared that their ports are open to vessels of all nations, and that their trade to and from their own Colonies shall be unmolested, their subjects complying with the ordinances issued by their High Mightinesses. In fact, their prohibition of exporting warlike stores, extends to all British subjects. I hope it will not be long before all Europe will own us in another character. It is very certain, that without a very material and apparent success of the British arms in America, a loan would be very slowly negotiated for England here. There is nothing hinders them now from selling out of the English funds, but their not knowing what to do with their money; for this country may be called the treasury of Europe, and its stock of specie is more or less, according to the necessity of the different Princes in Europe. It being a time of peace, the call has not been very great of late.

Having mentioned the credit of England, that of France is next to be considered, and I am very sorry to say that has been very low here of late. The dreadful mismanagement of the finances in the late King's reign, and the character of the late Controller General, M. d'Olugny, had reduced it so low, that it was impossible to borrow anything considerable on perpetual funds. Perhaps a Minister of Finance, in whose probity the world have a confidence, may restore their credit. At this moment that is in some measure the case, for the French stocks rise on the appointment of M. Taboreau. That it is possible for France to borrow may be demonstrated; for at the time M. Turgot was removed, he was negotiating a loan here, and was likely to succeed, for sixty millions of guilders. The credit of Spain is extremely good, and that kingdom may have what money it will, and on the best terms. The Emperor's credit is also good, not as Emperor, but from his hereditary dominion. Sweden and Denmark both have good credit. The former, the best; they have money at four per cent; and it is not long since the King of Sweden borrowed three millions of guilders at this interest, to pay off old debts at five per cent. His interest is paid punctually. Prussia has no credit here, but the King's treasury is full by squeezing the last farthing from the people, and now and then he draws a little money from this Republic, by reviving obsolete claims. The credit of the Empress of Russia is very good; for she has punctually paid the interest of twelve millions of guilders, which she borrowed in her war with the Turks, and has lately paid off one million and a half of the principal. These are the strongest circumstances she could have in her favor with a mercantile people. I have this statement of credit from persons employed in negotiating the several loans, and, therefore, can depend upon the truth of the information.

To come next to America, should time and necessity oblige her to look abroad for money. In the present state of affairs, it is not probable that a loan is practicable. But should success so attend our arms, that it should appear evident that we are likely to support our independence, or should either France or Spain acknowledge our independence, in either of these cases I believe we might have money, and when it was seen that we were punctual in our first payments of the interest, we should have as much as we pleased. The nature of the security, or the fund for the payment of interest, I have not been able to imagine. But, observing in a letter to Mr Dearethart, it was the writer's opinion, that the honorable Congress did not wish to circulate too much paper, for fear of depreciating its value, I thought that bills issued similar to those in circulation in the Provinces, and lodged in a public bank in Europe, might be accepted as a pledge or deposit for money borrowed by the United States. I beg pardon for the crudity of the idea, and would not have mentioned it here, but that having hinted at it in general conversation, people thought it might, on a future occasion, be adopted.

You will please to observe, that everything here mentioned came from an individual, who only as such avowed himself interested for his country's fate, and for its benefit sought information. Notwithstanding the rise of stocks, occasioned by our misfortune on Long Island, the Dutch are selling out, and my strongest representations have not been wanting to contribute a mite to this circumstance. The price of our product is great. Rice sells for twentyfive shillings sterling per cwt. and tobacco for eight stivers and four —— per pound. You have been threatened, that the Ukraine would supply Europe with tobacco. It must be long before that time can arrive. I have seen some of the tobacco here, and the best of it is worse than the worst of our ground leaf. Four hundred thousand pounds have been sent here this year. The Russian Ambassador said at the Baron le Guerre's, Ambassador from Sweden, where I had the honor to dine, that Russia soon would be able to supply the market with that article. In this he spoke more like an Ambassador than as a merchant. I took occasion in reply to observe, that if that was the case, and on many other accounts, it was the interest of her Majesty that all intercourse between Great Britain and America should be broken off, for that then the former would be dependent on Russia for all those articles, which hitherto the latter had supplied her with.

Having expressed a desire of knowing these reasons at large, with the assistance of M. D—— and the approbation of Mr Deane, I purpose giving in a little memoir on the subject, which the Ambassador assures me shall be sent to St Petersburg. Not being so sanguine as to think, that it will prevent Russia from supplying England with troops, should the other demand them, but it may give a secret dilatoriness to their assistance, which may finally operate in our favor.

If it should be determined to send any cargoes of tobacco here, on the public account, it will perhaps be thought proper to convoy them. The frigates destined to that service might retaliate the injuries we have received by the destruction of Falmouth and Norfolk, by destroying the towns and shipping of Greenock and the port of Glasgow, or Ayre and Cambleton. I have been particularly informed of the situation of those places until the present moment. They have no batteries to protect, or soldiers to defend them, or quartered near enough in any numbers to be assembled for that purpose, and not a vessel of war on the whole coast larger than a tender, to receive men for the sea service. Their rendezvous might be the entrance of the northern channel, where, while they waited a junction, in case they should be separated, they might take the outward bound ships, and by the information obtained from them, insure their success. In returning, a party landed on the Isle of Bute, might destroy the house of that favorite. Little objects strike most forcibly little minds. This affair completed, which would alarm Britain and astonish Europe, the ships trading to the Baltic, with cargoes not only that suit, but are necessary for our Provinces, might be their next object. This ought all to be done in the months of March, April, and May. The destruction of the Greenland fishery, might be the last object of the expedition. I am confident, that not having a distrust of such attempts, the success would be more certain. Should there be a necessity of seeking shelter or refreshments, I have it from the Swedish Ambassador here, that we shall find both in their ports. I only hinted to him, that it was possible some of our adventurers might explore those seas in search of plunder.

This is the rough outline of a plan, which the honorable Congress may, should it in any shape be approved, digest into form. I would stake my life on the success of the greatest part of it, if inviolable secrecy is preserved, and the execution is trusted to persons who have not only wealth but glory in view. If prompted by a heated and indignant imagination, this plan should appear dangerous and impracticable, I hope it will be imputed to the desire of retorting our injuries on that country, which has in some measure been the cause, and is at present endeavoring, with the rancor of private animosity, to accumulate our distress. I entreated Mr Deane to propose some part of it to the consideration of Congress sometime ago, and I have the pleasure to find his opinion corresponds with my own on the subject.

The resentment, which it is said the honorable Congress have shown, on the conduct of the King of Portugal towards us, has been attended with a very good effect, and should a manifesto be published by that honorable body, hinting only the necessity of taking similar measures with all those who denied them the common rights of mankind, I am persuaded it would be to our advantage. It was the dread of such a blow to their trade, that was one of the strongest arguments made use of by the merchants of this country, in their petition to the States. I need not mention to you anything respecting what is like to take place in Europe another year, for of that ere this, you, I hope, have information. I will only say, that the greater part contemplates with pleasure the gloomy prospect for England; there is not an Envoy of the most petty State in Italy, but exults at it. The want of intelligence from America, hurts the cause prodigiously in Europe, and the anxiety of those who have its interest at heart, is from that circumstance, inconceivable. I hope I need not offer assurances to convince the honorable Congress of the zeal with which I wish to serve them. To be directed by that honorable body in what manner to do it most effectually, will be the happiest circumstance of my life.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. I cannot seal this letter without recommending Colonel Prevet, should the fortune of war put him into our hands, to all the indulgence, to himself and family, his situation will possibly admit of. Mr Grand, his wife's father, an eminent merchant here, animated with that love of liberty which distinguishes his country, (Switzerland) offers all the services in his power to the public, and a thousand civilities to its individuals. If by the same fortune, Mr Dowdswell, of the first regiment of guards, should fall into our hands, his father's merits and his own reluctance, will give him the same indulgence.

Since I wrote the above, Mr Grand has assured me, that should the honorable Congress determine to negotiate loans in Europe, and would draw bills accepted by the principal merchants in America, payable at two, three, and five years' sight, and send them to their house, they should be discounted by them at five per cent interest. This was the manner in which money was raised for the city of Leipsic during the last war. The gentlemen of the committee will please to observe, that this is to be kept very secret, for no loan can be publicly negotiated here as yet. The firm of this house is Messrs Horneca, Fizeaux & Co. and is one of the most capital in this city. Should any cargoes be consigned here on public account, perhaps it may be thought proper to address them to these gentlemen. I can assure you, gentlemen, and that from my own knowledge, that many bills remitted from America, and supposed to be drawn on account of Congress, have been refused payment by the English Ministry knowing beforehand when they would be presented for payment, and by that means, having an opportunity of bribing, threatening, or flattering the parties on whom they were drawn, either to refuse payment absolutely, or at least noting them for protest, in order to hurt the credit of our merchants in Europe. I do think that the less connexion, for this and other reasons, we have in future with houses whose principal business depends on Great Britain, the better. I beg pardon for giving my opinion thus freely, but it is the effect of my zeal.

W. C.

TO WILLIAM BINGHAM AT MARTINIQUE.

Paris, June 25th to July 6th, 1777.

Sir,

A letter from a person unknown to you but by name, had need of a long introduction to apologise for the address, but not being a man of ceremony myself, and besides having but little time for formality, I content myself with saying, that engaged in the same cause with yourself, I have assisted Mr Deane since his arrival in Europe, and know intimately well our affairs abroad, their situation here, and in such Courts, where it has been thought necessary to address ourselves for countenance and assistance. I have of course been no stranger to your correspondence, and have been sorry to find so punctual a correspondent should have any reason to complain of the want of punctuality in others. This is not owing to want of inclination in Mr Deane, but to the multiplicity of business which occupies his whole time; for Mr Lee is absent, being at Berlin, where I first broke the ice last autumn,[1] and the age of Dr Franklin in some measure hinders him from taking so active a part in the drudgery of business as his great zeal and abilities would otherwise enable him to execute. He is the master to whom we children in politics all look up for counsel, and whose name is everywhere a passport, to be well received. As I trouble you therefore with forwarding some letters to my friends, I wish to pay the postage by any European intelligence in my power to communicate.

I have another motive to incite me, which is, that I think your situation of singular consequence to bring on a war so necessary to assure our independence, and which the weak system of this Court seems studiously to avoid. Either from this weakness, or from a jealousy, that by a precipitate interference, our independence would be too soon and too formidably established, the Court shuns everything in Europe which might appear a glaring violation of their treaties with England. This line of conduct has delayed the stores so long promised, and at last sends to Martinique, what ought to have been on the continent in February at furthest. This occasioned the loss of the Seine, which was despatched half laden, that such necessary articles as tents and fusils, might get early to America, the captain having positive orders to proceed thither without touching at the Islands, and I myself protested to the ship's owners, that Mr Deane would have no concern in the risk, if on any account but stress of weather, the vessel proceeded to the West Indies. As such is their miserable policy, it is our business to force on a war, in spite of their inclinations to the contrary, for which purpose, I see nothing so likely as fitting out privateers from the ports and Islands of France. Here we are too near the sun and the business is dangerous; with you it may be done more easily, and indeed has already been attended with happy effects, as you will see by the enclosed copy of a letter from the Chamber of Commerce at Liverpool to that of Bristol. The natural antipathy of the nation is such, that their passions being once fully excited, they will proceed to such acts of reprisal and mutual violence, as will occasion clamors and altercations, which no soft words can palliate. As I pretend to know something of the counsels of both nations, I know there are strong advocates for war in both. The more reasons they have to produce in favor of their system, the sooner it will be adopted.

In England, when General Howe's successes in the Jersies, and the prospect of getting possession of Philadelphia, made the Ministry hope for a speedy termination of their dispute with us, I know war with France was nearly determined on. The insolence of apparent success dictated that Memorial, which Sir Joseph Yorke presented to their High Mightinesses, and which you have undoubtedly seen. One of a still more insolent nature was prepared and even sent to Lord Stormont here, and a refusal and even delay of compliance with the requisitions therein made, was to have been the harbinger of war, and the immediate destruction of the French commerce and Islands. Happily for our enemies, the news of our success at Trenton prevented its delivery.

In France, the nation and some of the Ministers wish to act vigorously, but are retarded in all their operations by the imbecility of age, or the more powerful operation of English gold. As the English Ministry seem convinced of the pacific, or rather undecided, state of the rulers here, they hasten, by the most vigorous exertions against us, to end the war, and are less reserved in the treatment of the French prisoners abroad. Could they be provoked to unequivocal proofs of violence, it would be a good point gained. This your situation may bring about, by encouraging the arming of vessels manned by Frenchmen, and by prompting the captains to provoke unjustifiable reprisals, on the part of the inhabitants of the English Islands.

To you, filled with liberal ideas, and a high sense of the interest of the French nation, to give us powerful support, these hints may appear extraordinary, but from experience I can assure you, that public councils, at least in Europe, are directed more by caprice, or the interest of individuals, than by a generous concern for the whole. At a distance, we think more of the wisdom of statesmen than they merit. The nearer we approach them the less is our reverence. If our enemies are not successful, they mean to close with us on the best terms they can, sensible, that if this great effort does not succeed, they have little to hope in future. This is an animating reason for us to persevere in the glorious contest. In the meantime, it is our business to keep up the spirits of our common people to the utmost. For which reason, what I write you is in confidence, or for the inspection of the Committee only, if it may be thought to merit their notice.

The English have completed their loan among themselves. No foreigners have assisted them, although the terms to the lender are better than any yet offered by that nation, except once. Foreigners know that they have yet several millions to fund, for which they must offer still better terms. The Spaniards have refused the mediation of France and England in their dispute with Portugal, being determined to prosecute the war until Portugal demands peace, and makes reparation. They have taken the important Island of St Catharine's, on the coast of Brazil, without loss, and mean vigorously to prosecute their operations on Brazil. This I have from undoubted authority, one of the family Ministers. A report prevails, that the Indians of the east have fallen on their oppressors, and have taken Madras. India stock has, consequently, fallen. Both France and Spain continue their armaments as if preparing for some great event. This obliges England to do the same. All their naval and army contracts are for five years, and they employ as many workmen in their dock yards, as they did in the height of the last war. You will serve us essentially, by pushing the cruisers who visit you into the European seas, particularly those of the north, in the months of August, September, and October, directing them to send their prizes into France or Spain. It would render our negotiation with Prussia more successful, if a tobacco ship could by any means be pushed into Emden, which ship might make her returns in manufactures necessary for us, and fifteen or twenty per cent cheaper than we can have them here. Urge it to the honorable Committee.

I am, &c.

WILLIAM CARMICHAEL.

P. S. Two vessels with stores are just despatched from different ports. Forward them, my Dear Sir, immediately to our dear country. Captains Wickes, Johnson, and Nicholson, have just destroyed sixteen vessels on the English and Irish coast. I am despatching Conyngham from hence on the same business in a privateer. I begin to think war unavoidable.

W. C.

Dunkirk, July 6th.

FOOTNOTES:

TO THE PRESIDENT OF CONGRESS.

Yorktown, June 17th, 1778.

Sir,

Since my arrival here, I have been informed of the honor conferred on me by Congress, in being appointed Secretary to the Commissioners at the Court of France, an honor which greatly overpays the feeble efforts of my zeal, and is more than I could expect, considering the well founded pretensions of others to their notice.

I beg leave through you, Sir, to express my grateful sensibility of this proof of their confidence, as well as the ardent desire I have of meriting it in future.[2]

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE PRESIDENT OF CONGRESS.

Off Reedy Island, November 25th, 1779.

Sir,

I received at Chester, the copies of the resolves, you did me the honor to enclose me, and shall punctually comply with your request, by forwarding them as soon as I arrive, to Dr Franklin and Mr Johnson. I am sorry that the business with respect to the latter, is left in its present state, because there are very few men, who neglect a certain and profitable occupation, to engage in another where they are sure of offending, without an equal certainty of an adequate reward for their trouble and impartiality.

I am much obliged to you for your good wishes, although I must candidly own they would be still more agreeable accompanied by a ship of the line, for we are informed that the Romulus and Roebuck, are waiting for us to intercept us, and were they animated, would, like the Death and Sin of Milton, bless their lucky stars 'destined to that good hour.' I beg you to make the proper compliments for me to the gentlemen of your family.

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

WILLIAM CARMICHAEL.

TO THE PRESIDENT OF CONGRESS.

Martinique, December 27th, 1779.

Sir,

I take the liberty of enclosing to your Excellency, a paper containing a relation of a late affair, between part of the small squadron commanded by M. la Motte Piquet, and the English fleet, under the orders of Sir Peter Parker. It was given me by direction of the French Admiral, that a true account of this action, which has done him much honor here, might be published in America.

On the 23d of this month, Admiral Arbuthnot arrived at Barbadoes with six or seven sail of the line, and sixteen regiments. An attack on the Grenadas or Dominica, is daily expected. The latter is well fortified and garrisoned by twelve hundred men. The Marquis de Bouillè seems to have no apprehensions for any of their Islands, except those lately taken from the enemy.

Mr Jay informs Congress by this opportunity, of the misfortune which befel us, and the reasons which induced the officers to bring the ship to this Island.[3] I can only express my regret for the delay, which this accident will occasion in the execution of the business with which Congress has done us the honor to intrust us. With the highest sentiments of respect,

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO JOHN JAY.

Madrid, February 18th, 1780.

Dear Sir,

I did myself the honor of writing to you by a courier whom the French Ambassador despatched to Cadiz yesterday morning; since which, I have been introduced to their Excellencies, delivered your letter to the latter, and explained to the former the reasons, which induce you to address the other, with which he was perfectly satisfied. Don Joseph de Galves told me, that he should give your letter to the Count de Florida Blanca, whose business it was to lay it before the King, and receive his orders on the subject, and that the Count or himself would be directed to answer it. I repeated the substance of your instructions to me as far as they respect him, and was answered, that he would take an opportunity of conversing with me on our affairs, and would inform me through the French Ambassador, when it would be convenient for him to receive me. Some compliments passed with respect to the characters he had received of us, which it is unnecessary to repeat.

The Count de Florida Blanca told me that he would lay your letter before the King the same night for his consideration. I took this opportunity of mentioning the pleasure it would give Congress to hear of your reception at Madrid, from the earnest desire they had to cultivate the King's friendship, that their expectations were sanguine, having been led to believe the dispositions of the Court were favorable, by the suggestions of persons supposed to be well acquainted with its intentions, that the hopes of the people were also great, and I hinted, that there were several vessels about to sail from Bilboa, and the ports of France, by which you would be happy to communicate this news to Congress, and to gratify the expectations of the people.

He then told me he had informed the King of your arrival at Cadiz, although they had understood your original destination was to France; that the King had ordered him to receive your overtures, and that I was at liberty to give you this information, and after a pause, added, that on Monday he hoped to have it in his power to return an answer. You will please to observe, that it had not been read by either when this conversation passed. He also told me, that he would take an opportunity to converse with me, and would inform me when it would be convenient for him to see me through the channel beforementioned.

On Monday next I go to the Pardo, by their appointment. Here I see every day a person, who I believe to be sent by them to converse with me, although I appear to know nothing of his connexion with the Court. I think you may make the necessary preparations for your journey on the receipt of this. Messrs Adams and Dana were at Bordeaux the 2d instant. They mean to proceed to Amsterdam from thence, so that the plan spoken of has taken place. They go in a good time, as the Dutch are at present much irritated against Great Britain.

Mr Arthur Lee corresponded with the Count de Florida Blanca, but if I am well informed, the correspondence consisted of American news on the one part, and compliment on the other.[4] M. Gerard leaves this tomorrow, he has had conversations with the Spanish Ministers, of about two hours at one time and three at another. I am in a way of obtaining most of the information you desired. I beg you to present the proper compliments to your lady and Colonel Livingston.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE PRESIDENT OF CONGRESS.

Madrid, February 19th, 1780.

Sir,

The short time I remained at Cadiz, and the constant employment in which I was engaged of copying Mr Jay's letters and making the necessary preparations for my journey, prevented me from doing myself the honor of writing to your Excellency from thence. But having now an opportunity by M. Gerard to France, and an offer from M. Gardoqui to forward my letters by the way of Bilboa, I enclose to Congress copies of those I have written to Mr Jay since my arrival in this city, as they contain the most material intelligence I have been able to procure. I have every reason to be pleased with the disposition of those whom I have seen here, as well foreigners as natives, and I cannot sufficiently express my gratitude for the liberal and friendly manner in which I have been received by the Count de Montmorin, the Ambassador of France, which I should impute entirely to M. Gerard's good offices, was not his own good will and desire to conform to the favorable disposition of his Court apparent. M. Gerard in the circle of foreign Ministers, is more of an American than a Frenchman, and I should do him injustice if I did not mention it.

The English squadron sailed from Gibraltar the 13th instant, and part of it is said to be destined for the West Indies. The French will have seventytwo sail of the line in actual service this year. The troops, at the disposition of the person mentioned in the first[5] letter to Mr Jay, will amount to near four thousand, and consist chiefly of Germans; six sail of the line will escort them, and I am well informed they will sail in less than two months. It is said the English Ministry will be able to procure the necessary supplies for the present year, owing to their late successes. I beg leave, through your Excellency, to assure Congress of my unremitted attention to merit the confidence reposed in me.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Aranjues, May 28th, 1780.

Gentlemen,

Mr Jay having judged it proper for me to reside at this place while the Court remains here, I did not know until his letters for Congress were closed, that Mr Harrison, who charges himself with the care of them to Cadiz, was on the point of setting out from Madrid for that city. This prevented me from assisting him in copying papers, which he tells me he has transmitted by this opportunity. I regret exceedingly, my not having received earlier information, because I wished to convey several papers, which I do not choose to trust to the ordinary post. Our situation in this respect is very disagreeable and delicate, for we can neither send nor receive letters without their being subject to the inspection of others, and, indeed, we have sometimes the mortification to hear of the arrival of letters from America in the sea-ports, which, notwithstanding, never reach us. Our opportunities of information thus become very precarious, and I am much afraid, that the same cause will frequently interrupt our correspondence with Congress.

Before Mr Jay arrived in the capital, I did myself the honor to inform his Excellency, the President, of my arrival at Madrid, and enclosed him copies of the letters I wrote to Mr Jay, on the subject of his reception, and of the disposition in which the Court appeared to be. As I sent several copies of these letters, I subjoined all that occurred worthy of the notice of Congress in the interval of the departure of several copies. Not having had any instructions to address myself to Congress, unless in the absence of Mr Jay, or in case of any event that deprived the public of his services, I know not whether I may not appear officious at present; particularly as I have already communicated to him regularly, all the intelligence I have been able to procure, as also my reflections on that intelligence, which his ability and long experience in affairs, will enable him to put in a much clearer point of view than I can pretend to do. If I err, I hope the Committee will set me right, and instruct me how to conduct myself in future.

The King, the Prince of Asturias, and the Ministry, appear favorable to our cause, but I am much afraid their ability to assist us in the article of money, is neither equal to our expectations, or their desires to serve us. The papers sent by Mr Jay, will show the sentiments of this Court with respect to the object of his mission. I think the negotiation will be attended with more delay than Congress had reason to apprehend when we left America. This Court manifest a strong desire of excluding every other nation from the navigation of the Mississippi, and indeed of the Gulf of Mexico. The situation of the affairs of America will undoubtedly regulate the conduct of Congress on this subject, and I hope it will be such as to enable them to adhere to the rights of all the States.

Our enemies are making use of the time before Spain takes a decided opinion, to sow jealousies between us. Governor Johnson sounded the dispositions of this Court early last winter. At the close of it Sir John Dalrymple obtained permission to come to Madrid, on the pretence of the bad state of health of his lady. His strange Memorial to the Count de Florida Blanca, is transmitted to you.[6] I have no doubts that other attempts will be made to bring about a negotiation. If they succeed no better than Sir John's, we shall not have much to apprehend on that score. The Count de Florida Blanca appears to act with much candor, and gives Mr Jay such strong and frequent assurances of the King's favorable intentions, and his own disposition to second them, that I hope we may rely on what he tells us. His character for probity is high in this country, and among the foreign Ministers at this Court. As I have frequent opportunities of mixing with the latter, I have not omitted to give them proper impressions of our strength, union, and firmness, without seeming too solicitous to do it. It is possible, that if the neutral maritime powers were fully persuaded of this unanimity and firmness, and were sincerely disposed to bring about a peace, instead of regarding with pleasure the mutual losses of the House of Bourbon and Great Britain, they might end the war by declaring their disposition to acknowledge our independence.

The King of Prussia seems to be a cool calculator, prepared to profit by the general distress. Denmark is influenced by Russia, and Sweden by France. Great Britain also still retains some influence in Denmark. The Court of Vienna will be adverse to us, as long as the Empress Queen exists. How the Emperor is inclined, I do not know. Sardinia and Portugal are friendly and attached to England. The Dutch are divided into parties, neither of which is strong enough to give firmness and decision to the conduct of the Republic. The Stadtholder and his party find means to thwart and retard all the vigorous resolves, which the French and republican party engage the state to enter into, to support their honor and dignity. The hopes entertained in Great Britain of the influence of the former party, and the proneness of the King and his Ministers to violent measures, induced the late extraordinary conduct of that Court, with respect to the Dutch. They will submit to this and more, rather than go to war. If the Empress of Russia is determined to support her late declaration, and to coincide effectually with the powers whom she has invited to accede to it, Great Britain must, however, recede from her present conduct, or offend highly the neutral powers.

The negotiation between Russia and Holland proceeds slowly. The Court party in England has gained once more its superiority in Parliament; a feigned sickness of the speaker, Sir Fletcher Norton, gave the Minister time to rally his forces, since which opposition grows more feeble every day. That of Ireland, for want of system and union among its members, and by the promises of places and honors, is a little staggered. There is however a fermentation in both nations, which the continuance of the war and its consequent distresses will probably increase, if not bring to maturity. The distresses of our army last winter, the depreciation of our paper money, the exaggerated accounts of our divisions, and our apparent inactivity, have had a bad effect in Europe, which I hope the firmness and unanimity of Congress, added to the exertions of our ally, and those of this Court, will entirely efface.

The expedition, which sailed from Cadiz the 28th ultimo, consisting of twelve sail of the line, besides frigates, and eleven thousand five hundred men, proceeds to the Windward Islands, and there joins M. de Guichen, or goes against Jamaica or the Floridas, as circumstances may render it proper. Another expedition from France, follows M. Ternay's, I believe, to reinforce M. de Guichen, who, if I am not deceived, will join the Spaniards to the leeward in the hurricane months, and if necessary and practicable, send eight or ten ships to our coasts in the beginning of the autumn. This depends, however, much on the events of war. Spain in concurrence with France, will have between forty and fifty sail of the line, to oppose the grand English fleet, which I am informed will sail the last of this month or the beginning of next. The allied fleet is not in such readiness. Strong interest is making for the Count d'Estaing to command in chief, and I think he will be nominated.

A very little time will determine the fate of the bills drawn on Mr Jay. I received the first last week, in a letter from M. Nesbitt of L'Orient who very prudently did not negotiate it, until he consulted me on the subject. I am also informed, that bills on Mr Laurens are in circulation, and we have not yet heard of his arrival. I have written to Dr Franklin, and Messrs Adams and Dana, and if I have not heard from them oftener, I impute it to the miscarriage of their letters, which was the case of those of Dr Franklin, the first two months after my arrival at Madrid. Mr Jay will transmit an account of the revenues, and expenses of Spain, with which I have furnished him, which will show, that Congress cannot depend on such pecuniary assistance from this nation as they expected.

Mr Jay's situation has been particularly disagreeable; the sum allotted by Congress, by no means accords with his necessary expenses, even if he received his salary as it became due. I do not complain, although I have been obliged since my departure from America to expend more than six hundred and fifty pounds sterling, and have not as yet received more than two hundred pounds of my salary. Almost everything that passes, even in Congress, is known here, either by intercepted letters, or otherwise. You, Gentlemen, will conceive, how delicate Mr Jay's situation must be, if he delivers faithfully his sentiments of men and measures. I must repeat again, however, that there is a great appearance of candor and good faith. The Count de Florida Blanca, and M. Galvez speak with much apparent civility and frankness, and seem desirous of doing all that is possible to succor us consistent with the actual situation of their finances, the former particularly. I have sent a copy of this via Bilboa, and another from Cadiz. I have not yet had the pleasure of receiving one letter from any one member of Congress.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, July 17th, 1780.

Gentlemen,

Since writing the preceding letter, bills to the amount of about fifteen thousand dollars have been presented, and at a time when the news of our misfortune at Charleston made an impression much to our disadvantage. These bills however are accepted, and the Count de Florida Blanca appears to interest himself more than ever in contributing to aid us, repeating in the strongest manner his Catholic Majesty's favorable intentions. What he hinted at with respect to the attempts of the enemy, to thwart Mr Jay's negotiations has proved true. A Mr Cumberland, Secretary to Lord George Germain, has obtained permission to come to Madrid, and is actually here at present. But as his Excellency has promised to communicate his proposals, whatever they may be, on the subject of an accommodation, we cannot entertain a doubt, but that he will do it with the same frankness, with which he made known to us those of Sir John Dalrymple. The Count de Montmorin, Ambassador for France here, is not the least alarmed by the reception of this gentleman, and that Court is full as much interested as we are in the object for which he is sent. Mr Jay will transmit to Congress a narrative, which I have given him, of this gentleman's motions.

We have likewise received an account of the death of M. Miralles. He will soon have a successor, by whom we shall write more fully, and I hope more to the satisfaction of Congress. Nothing can hurt us here, or in Europe, so long as we are united, firm, and vigorous. I experienced at first a little coldness from the foreign Ministers at this Court, after the news of the surrender of Charleston, but that is worn off.

The public papers will announce the disturbances, which have lately arisen at London; all is at present quiet in that quarter, and government seems to have acquired fresh confidence and vigor. The Count d'Estaing is expected at St Ildefonso the 1st of next month, to go from thence to take the command of the united fleets, which will consist of thirtysix sail of the line, from Cadiz, including the French from Toulon, and other French ports, and twelve or fifteen from Brest. The last advices import that the English squadron amounted to twentyeight, chiefly capital ships; they left port about the 20th ult. The rest of Europe is in the same situation that I have already mentioned.

Since writing my letter of the 28th of May, I received a letter from the Baron de Schulenburg,[7] of which the enclosed is a copy, in answer to a civil letter, which I wrote him on my arrival here, representing the situation of our affairs in a favorable light. I daily expect another letter from him more particular, in consequence of an address, which I have transmitted to him, by which he may write to me in safety. I have cultivated the friendship of the foreign Ministers and their Secretaries as often as I have had occasion, and as I have always avoided an appearance of prejudice, I flatter myself, that I have been listened to with attention. My conduct has been the same with those of this nation with whom I have found means to be acquainted, and I doubt not, with time and patience, we shall ultimately succeed. I cannot speak too highly of the conduct of the Count de Montmorin, personally or politically. M. Gerard in his letters to me, expresses the same attachment as ever to our cause, and his late acquisition of dignity and consequence, puts it more in his power to be useful to us. As yet, Mr Jay has received but one letter from Congress, which conveyed their resolves respecting the bills of exchange drawn on him. I beg leave to acknowledge the receipt of a letter from Mr Houston last week, which I shall answer, if possible, by this opportunity.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, August 22d, 1780.

Gentlemen,

In the course of this month I did myself the honor of writing to you by the General Pickering from Bilboa, and the Captain Kyan from Cadiz, as also via France. In these letters I informed you of the situation of our affairs here, and of that of Europe in general; since which, we have advanced very little. The Minister had informed Mr Jay, on the 5th of July, that he had sent for a person to succeed M. Miralles, and that on his arrival, arrangements would be made with respect to the bills presented to Mr Jay for payment, and that he would then enter into discussions on the other objects of Mr Jay's mission. Before and since that period, bills to the amount of thirty thousand dollars have been presented, of which Mr Jay has accepted for fourteen thousand, by the direction of the Minister, and none of the others have as yet been protested.

You will see by a state of the finances of this country, which in compliance with Mr Jay's instructions to me, at my departure from Cadiz, I have had the honor to give him, that their revenues and resources since the war have greatly diminished, and that previous to that period, they were by no means so flourishing as Congress had reason to suppose. In most of the conferences with the Minister, the scarcity of cash has been objected more than the want of inclination, and hints have been thrown out, that it would be much more convenient for the Court, to grant the United States aids in money from their possessions in America than in Europe. Although hopes have been as constantly given, that a part of the sum drawn for would be furnished at the end of the present year, or commencement of the next, and that measures in the mean time might be taken to prevent embarrassments, in case of the arrival of bills after that period, great surprise has been expressed, that Congress should take such a step without previously informing the Court of their intentions, and obtaining its approbation of the measure. Congress will therefore judge of the propriety of disposing of any bills, that may remain unsold, until it is fully ascertained, that they will be punctually paid. Mr Jay, now at Madrid, where the death of his child, and the consequent distresses of his family, detain him a few days, will undoubtedly transmit more ample intelligence on this subject, with the various papers in his possession necessary to explain it. This Court has been obliged to make considerable loans, for their own current expenses, the nature of which I hope to be able to explain in a future letter. It has lately obtained seven millions, five hundred thousand current dollars, in France and elsewhere. The loan is for nine millions, and from the nature of it will create a temporary paper circulation to that amount in this kingdom. I shall transmit to Congress, as soon as it becomes public, a full detail of its operations.

Mr Cumberland, whom I mentioned in my last, and whose name you will find in all the European gazettes, is still at Madrid, from whence he has lately had permission to send a courier to London, but as the Spanish Minister has engaged to impart any serious proposals he may make, and as the French Ambassador expresses no uneasiness from the residence of this gentleman in Spain, although this circumstance at this crisis is extraordinary, we cannot presume there can be solid ground for apprehension. Considerable revolutions, however, have happened in the system of politics of this country, ever since the accession of the House of Bourbon, and where governments are often more influenced by the counsels, and sometimes the caprices of individuals, than from regard to the real and permanent interest of a nation, there is always something to fear. Congress judging from the assurances of the Minister, and the King's character, which is remarkable for steadiness, on the one part, and from the circumstance of Mr Cumberland's residence here, and the constant endeavors of our enemies by every insidious art to misrepresent our situation, on the other, will be best able to draw conclusions from the whole.

The treaty proposed by Russia to the neutral maritime powers, to secure their commerce, and protect their navigation, has been or will be acceded to by Sweden, Denmark, the Hanseatic towns, and Holland, and a Russian squadron is expected in the Channel daily. Portugal, it is said, influenced by England, will not accede to this treaty, which will put a stop to the piratical conduct of that country. France and Spain exclaim, against the partiality of Portugal to Great Britain, and I have been informed, but I do not pretend to vouch for the authenticity of the intelligence, that strong representations have been made to that Court, either to shut its ports against the armed vessels of the nations at war, or to take a part in it. The French Minister to that Court said something to the same purpose to me at Madrid, on his way to Lisbon. The English at present sell their prizes there, without the formality of condemnation.

The Count d'Estaing is now here, and on every occasion manifests the strongest attachment to the United States and their interests. The general opinion gives him the command of a part, if not the whole of the combined fleets, which amount to thirty six sail of the line, now at sea, commanded by M. Cordova. The English fleet under Geary, is also cruizing between Ushant and Cape St Vincent, to prevent the junction of the ships from Brest and Ferrol with the Spanish Admiral, and to protect their outward end homeward bound convoys, and to intercept those of the allies.

I had written thus far, when a courier arrived with the important news of the combined fleets having fallen in with, and taken fiftysix sail out of sixty, destined to the East and West Indies, Madeira and Quebec. I have requested Mr Harrison at Cadiz to enclose to the Committee a list of the prizes, and the nature of their cargoes, as it has not yet been received here. This will be severely felt in England, and will occasion more clamor against the Ministry, than all their naval losses since the war. Mr Jay has heard from Congress but once since we have been in Spain, and very seldom from our other correspondents, the last letters from Paris, mention that Messrs Franklin, Adams, and Dana, were well, and that Mr Adams was going to Holland.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. Since sending off a copy of the preceding letter, I have the pleasure to inform you, that the gentleman expected by the Minister has arrived, and proves to be Don Diego Gardoqui, who is already known by his former correspondence with America. Our affairs are once more in train, some bills have been accepted since his arrival, but nothing certain has been as yet determined, and indeed I fear the Court is too much pressed for money, to do anything considerable for us here in that way. Probably this gentleman will be sent to America, by whom we shall have an opportunity, I hope, of conveying the final determination of the Court with respect to our affairs. The navigation of the Mississippi appears to be the great, and if we can credit the assertions of men in power, the sole obstacle.

Mr Cumberland has been here, and is expected again with his family in a few days. I have been informed, that he has offered on the part of Great Britain, to restore to Spain what they lost by the treaty of Paris, and has been permitted to reside at this Court in expectation of being authorised to make further concessions, and indeed on no other principle can I account for his residence here at this crisis. I mentioned in my letter of the 22d ult., that representations had been made to the Court of Portugal, either to shut its ports against the armed vessels of all nations at war, or take a part in it. I have the honor to inform you, that the above Court has consented to the first of these propositions, although this is not yet public. Another vessel has arrived at Nantes from Philadelphia, by which neither Mr Jay nor myself have received any letters. The Russian fleet, consisting of fifteen sail of the line, and four frigates, is arrived in England. Admiral Geary returned to Spithead the 19th ult. This fleet, it is said, will soon be sent to sea, although he had upwards of two thousand sick when he returned to port. Stocks fell considerably in England when the news arrived of the loss of the convoy beforementioned.

A fleet of seven sail of the line sailed from Ferrol the 22d ult. to convoy off the coast a fleet of transports for the French islands, and probably to cruise to intercept the homeward and outward bound fleets of the enemy. This circumstance joined to the late loss of the convoy, has raised insurance prodigiously in London. The Parliament does not meet until the 28th of September.

W. C.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 9th, 1780.

Gentlemen,

I did myself the honor of writing to you the 6th instant, via Cadiz, Bilboa, and France, informing you that the person mentioned in my letters of last month, as chosen by the Minister to succeed M. Miralles, had arrived here, and proves to be M. James Gardoqui, and that since his arrival, our affairs are once more in train. I also mentioned that the Ministry were negotiating loans, to answer extraordinary expenses. I expected to have been able to send the Committee a full account of the nature of these loans, as I founded my hopes of the Court's paying the bills drawn on Mr Jay, by means of the supplies obtained in this way. I am therefore very sorry to inform the Committee, that the success of the most considerable has not answered the expectations of the Ministers, and what is worse, they impute its failure to the interference of M. Necker and others, influenced by that Minister, which has created a soreness, that for the moment must be disagreeable to our ally, and may be disadvantageous to us, unless more important considerations obviate the ill effects to be apprehended from such disappointment, and the personal disgust and resentment consequent thereof.

A person with whom I am well acquainted, is the projector of the loan abovementioned, and although for near three months I have known that such a measure was in agitation, I was not able to discover the plan, it having been preserved with great secrecy, in order to secure its successful and complete operation. As this measure is so far important to Congress, as it may influence the conduct of the Court with respect to money matters, and affect the credit of the nation in future, on which all the vigor of military operations in a great measure depends, I will endeavor to give the outlines of the money negotiation to the Committee, and will forward the plan and the King's ordinance thereon as soon as I receive them.

The original design of this loan was to procure nine millions of dollars, or thirtysix millions of livres in four months, and possibly to enlarge the sum according to exigencies. The projector was to receive ten per cent for expenses and profit, which he was at liberty to divide as he thought proper with the original lenders. To these, I think, he gave three, or three and a half per cent for the use of their money for four months, which money they were to remit in bills of exchange on Spain, and to redraw at the end of four months for their principal and interest. The great secret of the operation is, that government instead of repaying their bills in specie, issues paper to repay them, the credit of which is guarantied by the Crown and the different Chambers or Councils of the Kingdom, viz of Castile, &c. &c. This paper bears an interest of four per cent. A cedula, or royal ordinance, will be published the 20th or 21st of this month, which gives it currency, and inflicts severe penalties on any one who refuses it as a legal payment. M. Necker did not discover the latter part of the scheme until large sums had been remitted from France, and I suppose, fearing that its operation would be complete before his representations of what he thought its evil tendency, could be attended to here, he immediately gave orders not to receive the bills of exchange of the houses concerned in this measure at the Caisse Royale in France. Besides, the house of Gerardot, Haller & Co. one of the most considerable in Europe, and of which he was once the head, and his brother is still a partner, wrote circular letters to all parts of Europe discrediting the loan.

The consequence has been, that the persons in France and elsewhere, whose bills were refused at the Caisse Royale have been pushed here so hard by their creditors, that the Spanish government has been obliged to make considerable remittances to support their credit, that further advances of money have been stopped, and that bills of exchange on Spain have sold at a loss of one and one and a half per cent. This has irritated the merchants here, and perhaps we may be the innocent victims. For I am persuaded, that Spain, without obtaining it by loans, has not money in Europe to afford us considerable aids, how great soever her inclination may be to assist us, and I think the Committee will be of the same opinion, on reading the information I gave Mr Jay on the subject of the revenues of this country, in consequence of his instructions to me at Cadiz.

I shall be happy to have it in my power to inform the Committee, that my apprehensions have been ill grounded.

The fate of our bills must soon be determined. More than forty thousand dollars have been presented, of which the amount of about fourteen thousand have been accepted by order of the Minister. The Count d'Estaing will leave this in a few days, and go to Cadiz; by the time he can arrive at that port, the whole of the combined fleet will be assembled; thirtysix sail are now at Cadiz, seven on a cruise, and two of a hundred and one hundred and ten guns are on their voyage from Brest. The Count will urge a vigorous and decisive conduct, and seems to enjoy the King's esteem, and the good will of most of the Ministers and Courtiers.

The English emissary, Mr Cumberland, is still at Madrid, and is permitted to receive from and send couriers to London. The conduct of the Court appears unaccountable, and I cannot persuade myself, that it can be agreeable to France, although the Count de Montmorin frequently assures me, that we need not have any inquietude on account of the gentleman's residence. He no doubt, however, endeavors to insinuate many things to our disadvantage, and makes propositions to alienate Spain from the alliance with France, and from supporting the United States. Those about him are perpetually circulating bad news from America, and assert with confidence, that several States and many individuals in others, are negotiating to make their peace with Great Britain. Spain may possibly be amusing his employers, as he is employed to amuse the Spanish Ministry.

The treaty for an armed neutrality was signed by Sweden the 4th of August; Denmark had not signed it the 8th of the same month, but there is no doubt she will. The English party in Holland opposed and retarded it there as long as possible, and finally clogged it with such conditions as they hope will prostrate the negotiation; for instance, they propose to the contracting powers, to guaranty all their possessions in Europe, Asia, and America, but as the States have gone so far, they will scarce recede, should this article be refused by the others. The eyes of Europe are anxiously turned to America and the West Indies; the friends of liberty hope everything from our union and perseverance, and the expectations of our enemies are founded on the reverse. Neither Mr Jay nor myself have received letters from Congress since we left America, except one from the Committee, enclosing the bills of exchange, so that we are without intelligence, without money, or the certainty of conveying to Congress as regularly as we wish, the information necessary for them to receive, which will plead my apology with the Committee for the repetitions they will meet in this letter of what several other letters contain.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. The declaration of Portugal, shutting their ports against the armed vessels of the nations at war, which I mentioned in a letter of the 6th, has not yet been made public. It is supposed that the present Parliament will be dissolved and a new one called, while the influence of the present Ministry continues high. Considering the scarcity of cash in this country, and the present situation of affairs, perhaps Congress will do well to stop drawing on Mr Jay, until they receive information that their bills will be paid punctually. There appears no forwardness in this Court to enter into treaty; the navigation of the Mississippi is the great obstacle; the situation of America will guide the determinations of Congress, and I hope it will be such as to enable them to preserve the rights of all the States. Negotiations will, probably, be set on foot this winter, and it is likely this Court will be the theatre of them. As Spain has as yet taken no decided part in our revolution, England will rather choose to apply to this Court, and keep up the old idea of restoring peace by her mediation, than that of Versailles. Hints have been given, that it would be more convenient for Spain to furnish the States with money in America than here, but as they seem to think that America has not proposed an equivalent for what they demand, I am afraid assistance will be given very faintly.

W. C.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 25th, 1780.

Gentlemen,

I did myself the honor of addressing you the 6th and 9th instant, and in the latter expressed an apprehension, that Congress would not receive the pecuniary aid they expected in this country. I am now sorry to inform you, that on the 13th, Mr Jay was told by order of the Minister, that their own exigencies would not permit the King to provide funds for the payment of more of the bills than had been already accepted. I make no reflections on this event, and hope the Committee will suspend theirs, until Congress shall have received from Mr Jay, a relation of all that has passed here since the month of June last, with the papers necessary to elucidate it. In a day or two after the above information, his Majesty was pleased to offer his responsibility to facilitate a loan for one hundred and fifty thousand dollars in favor of the United States, and to promise some clothing, &c. &c.

On the 23d, Mr Jay had a long conference with the Count de Florida Blanca, the particulars of which I immediately reduced to writing, as I have done with respect to others which preceded this, copies of the most material parts of which Mr Jay will, probably, forward to Congress with his other despatches. In this conference, the Count spoke with much pleasure of a resolution of Congress, permitting the exportation of flour, for the use of the Spanish fleets and armies in the West Indies, as also of measures taken by them to make a diversion to the southward, to facilitate their operations against Pensacola, &c. &c. He said to Mr Jay, that the King had directed him to convey his thanks to Congress for those marks of their friendly disposition, and gave the strongest assurances, that his Majesty would never consent to a pacification, which did not include the interests of America, declaring at the same time, that the negotiations for peace were more remote than ever, although, as he observed, the King had been offered all he could desire from England, in order to induce him to a separate peace. He informed Mr Jay he had received intelligence, that Great Britain once more proposed to send Commissioners to treat with Congress, that this measure was under the consideration of the Privy Council, and would, probably, be adopted.

I seize the earliest opportunity of conveying to the Committee thus much of the conference, as most important for Congress to know, to which I add, that the Minister promised to take immediate measures for putting it in the power of Mr Jay, to evidence and avail himself of the responsibility of the King, and forwarding from Cadiz clothing for ten regiments, for the use of the American army. In the course of this conference, the Count de Florida Blanca asserted with warmth, that the King would never relinquish the navigation of the Mississippi, and the Ministry regarded the exclusive right to it as the principal advantage Spain would obtain by the war. This being the bar to the treaty, it seems not improbable, that this Court will not be in a hurry to treat with us, but rather trust to her interest in a general Congress for peace to obtain her favorite objects, preserving, in the meantime, such a line of conduct, as will enable her, in some measure, to be a mediator in it, with which idea she has been, and is flattered by England.

Mr Cumberland, whom I have frequently mentioned in former letters, still remains at Madrid. The Abbé Hussey, his coadjutor, has just received a passport to go to Lisbon, from whence he will, probably, embark for London, and return with the ultimatum of that Court, and intelligence for the Spanish Minister, for it is not improbable, he may be a better spy than negotiator. All this, however, is conjecture. In all probability, great efforts will be made next campaign in America, if the war continues, as we are told it will. The great objects of it are in that part of the world. France is engaged at all hazards to support our independence, and will do it, and Spain is desirous of possessing the entire navigation of the Gulf of Mexico. I take the liberty of repeating these reflections to the Committee, as they arise from conversations on this subject with persons in a situation to be well informed.

The different powers at war will, however, find some difficulty to procure money. England has not completed her last loans. France has begun to tax, and must continue to do so, notwithstanding the great economy of their Minister of Finances. The last operations of this Court to procure money, of which I gave the Committee a sketch in my last letter, and the state of the revenues, which I gave Mr Jay in my answer to his instructions, will show them the wants of this country. The interference of M. Necker in the operation beforementioned, deprived this Court of near two millions of pesos, and greatly irritated the Ministry. I hope, however, their resentments have subsided. This failure, they give as one reason for not being able to advance the money we expected, to enable Mr Jay to pay the bills drawn on him by Congress. Mr Jay has, however, at all hazards, accepted those which have been presented, and is taking every step in his power to provide money to pay them, as also those that may be disposed of in America, previous to the advice he has given Congress on this head.

The English Ministry are likely to have a large majority in the new Parliament, which is generally the case in time of war. The great neutral maritime powers of Europe, seem to regard the present war as an event favorable to the augmentation of their commerce, and will, probably, do so, until one or the other of the contending parties engaged in it appear to have a decided superiority. Portugal seems better disposed to the allies than heretofore. This change is, probably, the result of fear, more than of affection. The combined fleet at Cadiz, consists of fortythree sail of the line, besides frigates, &c. &c. The Count d'Estaing commands the French part of the fleet, and the whole is in readiness to put to sea. During his residence at this Court I was frequently with him, and he professes the same ardent desire to serve us as ever.

I cannot forbear mentioning to the Committee, my sense of the friendly and polite conduct of the Count de Montmorin to me ever since my arrival here, nor can I conclude, without remarking the good effects that our union, vigor, and perseverance have had in Europe. A continuance of these will render us respectable to our enemies, and of consequence to our friends.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, October 15th, 1780.

Gentlemen,

My last to the Committee was of the 25th ultimo, since which time Mr Jay has received a letter from Dr Franklin, to whom, as well as to the Count de Vergennes, he wrote on the subject of his disappointment in money matters here; this letter has given us much pleasure. The Court of France continues to manifest the same generous conduct towards us as ever, notwithstanding its own embarrassments for money. It has in fact agreed to furnish another million of livres, to answer new demands and old claims. Among the former, Dr Franklin comprised the twentyfive thousand dollars drawn by the order of Congress on Mr Jay. Only two bills of that sum have as yet been presented, and between eighty and one hundred thousand of those first drawn, all of which have been accepted.

Every post augments the sum, and we are still uncertain whether money will be procured in time to pay them, particularly should the bills for the whole soon come to hand. The Minister apparently has endeavored, and is endeavoring, to procure money for this purpose. M. Gardoqui, who will probably succeed M. Miralles, and a gentleman who planned the loan I mentioned in my letter of the 9th ultimo, are interesting themselves in this business. If either of these gentlemen can procure money, or if the Crown can obtain it by other means, it is probable that Mr Jay will be furnished with a part, if not the whole of the money necessary for this use. But I am still afraid its ability will not correspond with our wants and our wishes. The Court has given orders to enable Mr Harrison at Cadiz, to obtain and ship the clothing for ten regiments, mentioned in my last. This gentleman is a native of Maryland, is well known in that State, and has on this, as on all occasions, manifested a disinterested zeal in the service of his country.

There is no alteration in the political state of Europe since my last, and no event of consequence in the operations of the war. The convention for the armed neutrality is not finally concluded, but I am told the Empress of Russia is determined to maintain the system proposed by her. The States of Holland have not yet acceded to it. Their Plenipotentiaries were instructed to add some articles; one of which is, to procure the restitution of their vessels unlawfully captured by the English, another to make it a common cause, in case the Republic should be molested in consequence of her accession, and also that her possessions in all parts of the world, should be guarantied by the contracting parties. Their mediation is also proposed to bring about an accommodation between the powers at war. These articles in the instructions, were inserted by the friends of England, in order to retard, if not defeat the measure, so far as it respected the States. It has leaked out from the Court of Petersburg, perhaps expressly, that the English Minister at that Court, declared to the Empress, that the King was disposed to respect the neutrality, provided Holland was excluded. This has come to the knowledge of the plenipotentiaries, and it is supposed on being known to the States, will hasten the conclusion of the affair, which must put an end to the piratical rapacity of Great Britain, or involve her in new and great difficulties.

Two Russian vessels, captured and carried into England, have been released, while Dutch vessels with similar cargoes are condemned. The Court of Portugal has given orders to equip several vessels of war, and seems inclined at present to preserve a strict neutrality, prompted to this more by fear than inclination. The combined fleet is still at Cadiz, it consists of between forty and fifty sail of the line, and has provisions on board for six months. The Count d'Estaing has provided clothing for the winter, for his seamen and marines, and M. de Guichen is expected with much impatience. His destination is a secret, but I think he has a strong desire of visiting our part of the world once more. He will not be inactive, if he can avoid being so.

The Committee will probably take notice of an article in the foreign papers, which mentions a revolt in Peru. This if true and serious as represented, would be an event as important as disagreeable. I have as yet no reason to believe it of the nature represented, if true. The Ministry have taken no extraordinary measures, in consequence of this intelligence, except the fitting out some packet boats for that part of the world, which may be done to obtain more regular advice, than they have had from thence for some time past. If it should appear, that there is any foundation for this report, you may depend on my endeavors to give the earliest and most accurate information I can obtain with respect to the causes and consequences of such an event.

Mr Jay means to send soon large packets to Congress, to which I beg leave to refer the Committee for more minute details on the subject of this and my other letters, than I can furnish it, from not being in possession of the various papers, and communications which respect the mission.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 28th, 1780.

Gentlemen,

I did myself the honor of addressing the Committee frequently in the course of the last month; this letter, therefore, can furnish little besides a confirmation of what I then believed to be the disposition of the Court, of the state of Europe, and of this part of it more particularly, derived from the best information in my power to obtain.

I have in a great measure confined my inquiries to two objects, the situation of the finances of Spain and its disposition toward us and our ally. Every day gives me reason to think the former are critically circumstanced. I know from good authority the ways and means for the next year are not devised yet, and I have great reason to believe that the necessary funds cannot be procured by taxation, because the augmentation of the present year's taxes has not produced what the Ministry expected, and neither the commerce nor produce of Spain will permit further efforts in this way. In short, the current expenses of 1780 have exceeded the revenue twentyfive millions of dollars, and notwithstanding, the arrearages to the public creditors are considerable.

The loan for nine millions of dollars, mentioned in my former letters, is not yet completed, in part owing to the obstacles thrown in its way by M. Necker. The resentment of the Spanish Ministry, which this interference excited, has not yet subsided, and I am afraid the prejudices thereby excited will not soon be eradicated, although common interest may stifle them apparently at present. The mode of raising money in the manner heretofore mentioned may become the only plan practicable, should others now in contemplation not succeed, and Spain may be obliged to have recourse to paper, from inability to procure money by other methods.

The Court of Great Britain is well informed of their situation through Mr Cumberland, their emissary here, who spends a great deal of money. Influenced by which, and other advices, the King has, in his speech to Parliament, openly avowed his determination to prosecute the war with vigor, and he will be supported by a great majority in both houses. From the best information I have been able to collect, I am sorry to tell you, that the nation will be able to borrow the sum demanded for the expenditures of 1781, which with the usual vote of credit at the end of the session, will amount to sixteen millions sterling at least. The scheme of the Ministry to effect this is not yet public, but I am told, it will be on similar conditions to those of the present year. Ninetytwo thousand men are voted for the marine, and I have reason to think a considerable reinforcement will be sent early to the southward, and that agreeably to a proposition of Sir J. Amherst, the enemy means to occupy and fortify strongly a port near the month of Chesapeake Bay, from which with a strong garrison and a naval force, they hope to interrupt the navigation of the Bay, and by frequent incursions prevent the States of Maryland and Virginia from sending supplies of men, &c. &c. to the Carolinas. Among the troops mentioned to be embarked there, are three regiments of light dragoons. Your servants nearer Great Britain will give you more accurate information.

I am persuaded that our ally will take early measures for defeating these designs. This latter information is derived indirectly from conversations with men in a situation to be well informed. The disposition of this Court depends much on its hopes of obtaining the objects for which it commenced the war, and I should not merit the confidence reposed in me if I did not tell you plainly, that I believe that the exclusive possession of the Gulf of Mexico is the favorite object, and that if they cannot obtain it by a connexion with the United States, they will endeavor to procure it, by a general, if not by a separate peace, to which the King's good faith is, perhaps, at present the greatest obstacle. The Congress knows best the situation of their affairs, and I hope it may be such as to enable them to preserve the rights of all the States.

As I have frequent occasions of seeing the foreign Ministers here, and their Secretaries, I am too often obliged to remark their partiality for Great Britain, and jealousy of the house of Bourbon, particularly those of Russia, Vienna, Sardinia, Portugal, and Holland. Some of these, in my opinion, are the best spies England employs here. Jealousy on the one hand, and on the other compassion and admiration, begin to take the place of envy and interest. The transition from these to friendship and support is not difficult, if their masters do not differ in sentiments from their servants. Our perseverance, vigor, and exertions occasion a hesitation with respect to the event of the war, which augments or diminishes in proportion to their ideas of the intentions of this Court, which leads me to think it probable, that if Spain would enter into positive engagements with the United States, the hopes of the enemy to divide the allies would be at an end; the neutral powers would think our independence certain, and would endeavor to terminate the war, while Great Britain is in such a situation as to be able to preserve her other possessions.

Should the situation of affairs in America be in a worse situation than I hope they are, and should the Congress judge it necessary for their establishment to make further advances and sacrifices, permit me to take the liberty of observing, that these offers should be accompanied with a proviso of this Court's avowing the independence of the States immediately, otherwise the offers should be considered as null, and no pretensions formed thereon in a treaty for a general peace. At the same time, it might suit the States to procure a sum in specie from the Spanish settlements in America, and to obtain certain advantages of preference in the admission of the produce of their fisheries into the ports of Spain. I think it my duty to write you fully and freely the sentiments which arise from the opportunity of information you have given me, and should be happy to give you such as would be more acceptable to you, and more conformable to my wishes.

Mr Jay has received and accepted your bills to the amount of fifteen thousand dollars, and I hope will be enabled to pay them; but this business has thwarted the other part of his mission here, in showing our necessities so plainly. For this Court seems to expect equivalents for services rendered, and the interest of money advanced to us is not its object. This leads me to repeat what I mentioned in a former letter, of the King's satisfaction for a resolution of Congress, permitting the exportation of flour to the Havana, and that every similar manifestation of amity will much contribute to counteract the intrigues of the enemy here. The Minister of the Indies lately assured me, that his Majesty had directed him to return thanks, through the Chevalier de la Luzerne, for the respect shown at the interment of M. Miralles.

Having mentioned this gentleman, I am induced to speak of his intended successor, M. Gardoqui, who has now been named near five months, yet is still here. This detention is one reason among many others, which makes me fear the Court has not taken a decisive part for the next year, although the last declarations of the Minister on this subject were clear and positive. I have purposely omitted speaking of the operations of the war in Europe, and other articles of intelligence, in order to have it in my power to give you the latest I have received. I hear from England, that Mr Laurens is closely confined, and treated as a prisoner of State. The Committee may be persuaded, that retaliation on some of the English prisoners of consequence, will be regarded in Europe as a proof of the confidence of Congress in the support of the people.

A copy of the proposed treaty with the States of Holland, was taken among the papers of Mr Laurens, and sent by the British Ministry to the Stadtholder, who endeavored to criminate the Pensionary of Amsterdam and those concerned with him, in consequence of this discovery. He is, however, supported by the Regency, and this step of the Stadtholder, not having the effect intended, Sir Joseph Yorke has presented a violent and menacing Memorial to the States, demanding the punishment of the Pensionary and his accomplices.[8] I am advised that this Memorial has irritated in place of intimidating, and that since four of the seven States have agreed to accede to the armed neutrality, the persons attacked by the British Court have no apprehensions, and, possibly, the capture of these papers may eventually be of great advantage to the United States, by precipitating the conduct of England, and obliging the States to take a part contrary to their dispositions, and, perhaps, to the interest of one or other nation. The situation of M. Dumas is rendered more critical by this circumstance, and it would be injustice to him not to mention, that he is indefatigable to contribute to our information by his correspondence, and by his frequent publications to represent our situation in the most favorable point of view.

Mr Jay will transmit Congress a full state of our affairs here, with all the papers necessary to elucidate it. I have seen but one letter from Congress since my residence in Spain, from which I conjecture Mr Jay has received but one. He informs me he has written Congress, that it has not been my fault, that all copies of letters for their inspection did not appear with my signature. In the month of May, I answered in writing the instructions he gave me at Cadiz, as I did viva voce at Aranjues in April, before he entered Madrid. I should not mention this circumstance to the Committee, if I did not know that copies of these instructions had been forwarded to Congress, and only abstracts of the most important part of my answer sent them; I will take the liberty, therefore, of sending by the first safe opportunity the whole of my answer, from no other motive than that of evincing my desire to comply in every point with the duties of the trust reposed in me.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. December 8th.—The Count d'Estaing sailed the 7th ult. from Cadiz, and, as yet, we have no news of his arrival in France. Mr Cumberland is still here, and waits an answer to despatches sent by the Abbé Hussey to England, which is daily expected. Mr Jay has received a letter from the Count de Vergennes, that France cannot provide for the payment of your bills here. But I always hope the credit of America must not be ruined for want of £100,000 sterling, although, personally, your servants have not money to pay their debts.

W. C.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, December 19th, 1780.

Gentlemen,

I wrote to the Committee the 20th ult. to which letter I beg leave to refer them. Having now an opportunity of writing by a vessel, which conveys a copy of my last, I seize it to inform them that the situation of our affairs here is much the same as at that period. Mr Jay has received near eighteen thousand dollars to pay the bills first accepted, and this, with the twentyfive thousand expected from France, will give us a respite until the month of March. In the interval, I hope the Court will enable Mr Jay to answer the others as they become due, though this will depend much on the facility it finds to procure money. I have reason to think that the Ministry expect some treasure from America, that they hope to negotiate in Holland a loan of forty millions of reals, and another at home and abroad for eight millions of dollars. I shall be glad to see these expectations realised.

The States of Holland have acceded to the armed neutrality; notwithstanding this, the English contrive to take their ships every day, and it is not improbable, that orders have been given to attack their possessions in the East Indies. No satisfaction has, as yet, been given by the States in answer to the Memorial of Sir Joseph Yorke, mentioned in my last. The Dutch Minister and his Secretary have each told me, that it would be considered as words, and answered as such.

The Empress Queen is dead, which leaves the Emperor to act at full liberty. He is said to be ambitious and revengeful, and well disposed to Great Britain. I know that his Envoy at this Court is strongly attached to the interests of that country; but his father, the Prince de Kaunitz, was too long the favorite of the mother, to expect to hold the same influence with the son. It is to be hoped, that the ensuing campaign will pass, before the Emperor can be in a situation to embroil the affairs of Europe.

The Count d'Estaing, who sailed from Cadiz the 7th ultimo, was not arrived in France at the departure of the last courier. This is an unlucky circumstance, as it will retard the operations of the ensuing year. Mr Cumberland is still here, and entertains hopes of success, or affects to do so. The Count de Montmorin seems to have no apprehensions, and while that is the case, I flatter myself that we need not be uneasy at a circumstance, which in itself is very extraordinary. I do not think, however, that M. Gardoqui will leave Spain, until all hopes of negotiation cease. We have no advices, or indeed arrivals, since the departure of the frigate, which brought the son of M. Rochambeau to France. Many of the letters taken with Mr Laurens have been published in England. I take the liberty of reminding the Committee, that I have never had the honor, as yet, to receive their orders.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, January 4th, 1781.

Gentlemen,

I wrote you the 24th ultimo,[9] since which I am advised, that the Abbé Hussey is on his way from Lisbon to this capital, as is supposed with further propositions on the part of England. I think they will be as fruitless as the former. I have the pleasure of informing you, that on the 19th ultimo, Great Britain declared war in form against Holland. A courier brought the news this morning, which has given great pleasure to the Court, if one may be allowed to judge from appearances. Expresses were immediately despatched by the Ministry to the sea-ports, to advise the Dutch consuls of this event, and to offer the protection of convoys, &c. &c.

It is supposed, that the Empress of Russia will resent this declaration of England, as it is posterior to the notification of the accession of the Republic to the armed neutrality, which is the real though not the alleged cause of the war, for I make no doubt events will discover, that this measure was resolved the instant the English Ministry knew, that the accession of the States to that treaty was inevitable. I shall take care to give you minute and regular advice of the consequences likely to result from this event; meantime permit me to felicitate you on the acquisition of new friends.

The English fleet returned to Portsmouth in a bad condition, without having made any attempt against that of Count d'Estaing, of which they were thrice in view. The French fleet was not arrived when the courier who brought the agreeable intelligence before mentioned left France. This Court expects to obtain the sums necessary for the expenses of the year. I hope to transmit the plan of the proposed loan in my next letters.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

P. S. Lest my letter of the 24th ultimo should miscarry, I repeat, that the Court has engaged to supply Mr Jay with three millions of reals, in addition to eighteen thousand dollars already furnished, which with the twentyfive thousand promised by France, will nearly pay the bills already presented, and I hope ways and means will be found, to provide for the payment of the residue, drawn and sold before reception of Mr Jay's letters of advice.

W. C.

FOOTNOTES:

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, January 29th, 1781.

Gentlemen,

My last advised the Committee of the declaration of Great Britain against Holland; the capture of a great number of prizes, in consequence of this unexpected attack encourages the former, and has greatly irritated the latter. The States, Zealand excepted, seem disposed to act with vigor against the common enemy. If they persevere, they may finally disappoint their rapacious projects. They depend on the interference of Russia, and I believe with reason, although a day or two ago, the Count de Kaunitz, the Imperial Ambassador here, offered his master's mediation, in conjunction with the Empress of Russia to terminate the differences subsisting between the belligerent powers. No answer to this offer has yet been given. The Minister from Russia has not yet received the orders of his Court thereon.