Chapter C: Clotterbooke." (8)

No. 3. That article is the first; four hundred dollars stolen out of my chest at Dr Franklin's. After I received my commission from Congress to borrow money in Holland, Mr Thaxter was obliged to come to assist me; but as it was not certain I should stay in Holland, it was not proper to remove my baggage from Paris. Accordingly, I wrote to Dr Franklin, requesting him to give house-room to my chests, which he was kind enough to agree to. They were all accordingly carried there; but while there, some thief broke out the bottom of one of my chests and carried off four hundred dollars, which I could never hear of. Mr Dana and Mr Thaxter knew, that the money was there, and Dr Franklin knows it was stolen; and as this misfortune has happened from my having two commissions, that called my attention different ways, and from no fault of mine, I think it is but reasonable I should be allowed it, provided Congress shall charge me with the whole sum of money received of M. Lagoanere. If they allow me that sum, I do not desire to be allowed this four hundred dollars.

The second article in No. 3, is my journey to Paris. As this was an additional and double expense, arising necessarily from my having two departments, one for peace, and one for Holland; and as it was a heavy expense, I submit to Congress the propriety of allowing it.

The other articles in No. 3, are deductions from my salary, which Dr Franklin wrote me ought to be allowed me by Congress, but he did not think himself authorised to pay any more than my net salary; so that all charges must fall upon me; whereas I apprehended the intention of Congress was, that the net salary should be paid me, and all necessary charges attending the payment of it, to be borne by the public. I submit it, however, to their decision.

The other articles, of house rent, stationary, salaries of clerks, postage of letters, and extra entertainments, are articles, which Dr Franklin wrote me he had charged to Congress, and since told me, that Mr Jay was of the same opinion with him and me, that they ought to be. I have not sent any particular account of these things, and shall not, until I know the determination of Congress; because it is extremely difficult for me to make out an account of them. My life has been such a wandering pilgrimage, that I have not been able to keep any distinct account of them. They are scattered about in thousands of receipts, with other things, which will require more time to bring together than I will spend upon it, until I know the pleasure of Congress. My house rent has, on an average, cost me more than one hundred and fifty pounds sterling a year, although mostly I have lived in furnished lodgings. I have had but one clerk, Mr Thaxter, to whom I hope Congress will make some compensation for his faithful and industrious services, in addition to what I have paid him, which has been only one hundred pounds sterling a year. If Congress will allow this to me, it may be easily added by them to the account.

The purchase of the house is a very good bargain. If Congress should pay the house rent of their Ministers, it will be cheaper here than anywhere, by reason of this purchase; if not, their Minister here may pay interest of the purchase money for rent, to Congress, as well as another. But in that case he will live at a cheaper rate than any other Minister. I have been at a small additional expense for repairs, which has put the house in order; but as the accounts are not yet brought in, I cannot exactly tell the sum. When they come in, I shall draw on the Messrs. Willinks, Van Staphorsts, and de la Lande and Fynje, for the money, unless I shall have contrary orders from Congress.

I have ever made a large expense for newspapers, for the sake of public intelligence, and have sent them as often as I could, and in great numbers, to America. As I ever have, I ever shall send them all there, and if Congress shall think this a proper charge to the public, it may be added hereafter.

I have the honor to be, &c.,

JOHN ADAMS.

FOOTNOTE:

[9] The salary allowed the Ministers abroad at that time, was two thousand five hundred pounds sterling a year.

* * * * *

ROBERT R. LIVINGSTON TO JOHN ADAMS.

Philadelphia, September 15th, 1782.

Dear Sir,

I have been favored with your letters from the 19th of April to the 5th of July, by the _Heer Adams_. How impatiently they have been expected, you will be able to judge, by mine of the 29th ult. which you will receive with this. The events they announce, are considered of the utmost importance here, and have been directed to be officially communicated to the different States.

Your loan is approved, and the ratification herewith transmitted. The resolution, which will accompany this, will be a sufficient spur to induce you to extend every nerve to get it filled; for if the war continues, it will be essential to our exertions; if it should terminate, it will not be less necessary to enable us to discharge our army; in every view it is necessary. In the present situation of the States, money can be raised but slowly by taxation. New systems must be introduced, which cannot without difficulty be adopted in the hurry, confusion, and distress of a war. They will, however, be adopted. Congress are constantly employed in discussing the means for a regular payment of the interest, and the gradual discharge of the principal of their debt.

The other resolution arises from the difficulty of ascertaining what are really the funds of the United States in Europe, when more than one person can dispose of them. I am satisfied this resolution will meet your approbation, from the rule which you say you have prescribed to yourself. It will, I dare say, be equally agreeable to our Ministers to be released from the troublesome task of bankers to the United States.

You mention the negotiations on the tapis in Paris, but so slightly, as to leave us in the dark concerning their progress, presuming, (as, indeed, you might have done, on probable grounds) that we should receive information on that subject from Dr Franklin, but, unfortunately, we have learnt nothing from him. I must beg, therefore, in order to open as many channels of information as possible, that you would give me, not only the state of your own affairs, but every other information, which you may receive from our other Ministers, or through any other authentic channel.

I observe your last memorial, or note, is in French. Would it not be expedient, and more for our honor, if all our Ministers at every Court were to speak the language of our own country, which would at least preserve them from errors, which an equivocal term might lead them into. I mention this, merely as a hint, which is submitted to your judgment.

We are informed that the _Aigle_ and _Gloire_, two frigates from France, have just entered the Capes, closely pursued by a British ship of the line, and three frigates. It is strongly apprehended from the situation in which they were left, that they must either be destroyed, or fall into the enemy's hands.

Pigot is arrived at New York, with twentysix sail of the line. The late changes in administration seem to have made such a change here, that I much doubt whether they will quit us this fall, at least, till they hear again from England, though they certainly were making every disposition for it before. I will keep this letter open till I hear the fate of the frigates, and know whether our despatches by them can be preserved.

M. Dumas's application is before Congress. They may possibly appoint him Secretary to the Legation, which I heartily wish they may, as he certainly has been an assiduous and faithful servant. But there is no probability of their going further, as they would not choose to appoint any but an American to so important an office, as that of _Charge des Affaires_. Nor will their present system of economy permit them to make so great an addition to his salary as you mention, which is much greater than is usually allowed to secretaries, as their circumstances require it to be less.

_September 18th._ The Aigle, Captain La Fouche, has been driven on shore, and is lost within the Capes; her despatches, money, and passengers, have, however, happily been saved. The Gloire, the other frigate, has arrived at Chester. I find no despatches from you among the letters that have come to hand; nor anything from Holland, but duplicates of letters from M. Dumas. Congress yesterday passed the annexed resolution, which needs no comment.

I am, Sir, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO ROBERT R. LIVINGSTON.

The Hague, September 17th, 1782.

Sir,

This morning, I was in conference with M. Fagel, in order to make the last corrections in the language of the treaty, which is to be executed in English and Dutch, as that with the Crown of France, was in English and French. We have now, I hope, agreed upon every word, if not every point, and nothing remains, but to make five fair copies of it for signature, which, however, is no little labor. The Secretary thinks he shall accomplish them in the course of this week, and part of the next, so that they may be signed by the latter end of next week, or perhaps the middle. The Secretary, who has always been complaisant, was more so than ever today. He congratulated me, upon the prospect of a speedy conclusion of this matter; hoped it would be highly beneficial to both nations; and that our posterity might have cause to rejoice in it even more than we. He says the usage is, for two Deputies to sign it, on the part of Holland, and one on the part of each other Province, so that there will be eight signers in behalf of the Republic.

It is now nearly five months since I was publicly received, and proposed a project of a treaty. All this time it has taken the several Provinces and cities to examine, make their remarks, and fresh propositions, and bring the matter to a conclusion. It would not have been so long, however, if the Court had been delighted with the business. But, in a case where unanimity was requisite, and the Court not pleased, it was necessary to proceed with all the softness, caution, and prudence, possible, that no ill humors might be stirred. Yet, in a case, where the nation's heart is so engaged, in which its commerce and love of money is so interested, what wretched policy is it in this Court, to show even a lukewarmness, much more an aversion. Yet, such is the policy, and such it will be. The Prince of Orange is, to all appearance, as incurable as George the Third, his cousin.

I was afterwards an hour with the French Ambassador, at his house. He tells me, his last letters from the Count de Vergennes say, that he has yet seen no appearance of sincerity on the part of the British Ministry, in the negotiations for peace. Of this, Congress will be easily convinced by the copies I have transmitted of the commissions of Mr Fitzherbert and Oswald.

The subject of our conversation was the means of getting out the Dutch fleet, which is now in the Texel, although the British fleet, under Milbank, is returned to Portsmouth, and probably sailed with Lord Howe for Gibraltar. I asked the Duke, where was the combined fleet? His last accounts were, that they were off Cape Ortegal, endeavoring to get round Cape Finisterre to Cadiz. He speaks of it, as doubtful, whether they will give battle to Lord Howe, because the Spanish ships, with an equal number of guns, are of a smaller caliber than the English; but hopes that the blow will be struck before Howe arrives. The means of getting the fleet out of the Texel to intercept a fleet of English ships from the Baltic, came next under consideration. But the wind is not fair. It might have gone out, but they had not intelligence.

I asked, who it was that governed naval matters? He answered, the Prince. But surely the Prince must have some assistance, some confidential minister, officer, clerk, secretary, or servant. If he were a Solomon, he could not manage the fleet, and the whole system of intelligence, and orders concerning it, without aid. He said, it is the College of the Admiralty, and sometimes M. Bisdom, who is a good man, and sometimes M. Van der Hope, who may be a good man, he has sense and art, but is suspected. Very well, said I, M. Bisdom and M. Van der Hope ought to be held responsible, and the eyes of the public ought to be turned towards them, and they ought to satisfy the public. The Duke said the Prince is afraid of the consequences. He knows that the sensations of the people are very lively at present, and nobody knows what may be the consequence of their getting an opinion, that there has been negligence, or anything worse, which may have prevented them from striking a blow. I asked, if they had any plan for obtaining intelligence, the soul of war, from England? And he said the Grand Pensionary told him, he paid very dear for intelligence.

However, I cannot learn, and do not believe that they have any rational plan for obtaining intelligence necessary from every quarter, as they ought. They should have intelligence from every seaport in France, England, Scotland, Germany, and all round the Baltic, and they should have light frigates and small vessels out. But when war is unwillingly made, everything is not done. The next subject was the proposition from Amsterdam, for renewing the concert of operations for the next campaign.

Congress may hear of some further plans for a separate peace between Holland and England, but they will not succeed. The Republic will stand firm, though it will not be so active as we could wish, and the concert of operations will be renewed.

I have the honor to be, &c.

JOHN ADAMS.

* * * * *

_Extract from the Records of the Resolutions of their
High Mightinesses the States-General of the United
Netherlands._

_Tuesday, September 17th, 1782._ "The Lord Van Randwyk and others, Deputies of their High Mightinesses for the Department of Foreign Affairs, in obedience to, and in compliance with their resolution of the 23d of April of the present year, having conferred with Mr Adams, Minister Plenipotentiary from the United States of America, respecting the entering into a treaty of amity and commerce with the said States, reported to this Assembly, that the said Mr Adams, on the 26th of April thereafter, did deliver to them a plan of such a treaty, requesting the same might be examined, and that such articles might be added, as might be deemed most serviceable. That the said gentlemen, Deputies, after having consulted and advised with the committees of the respective colleges of the Admiralty upon the said plan or sketch of a treaty, made sundry observations thereon, and also sundry separate propositions, all which on the 26th of August last they communicated to the said Mr Adams, who, on the 27th following, returned his answer thereto; which having compared with the said propositions, and finding the same in substance conformable thereto, and all difficulties that had occurred entirely removed, they drew up a new treaty, and also a new convention on the subject of retaken prizes, in conformity to the determination that has been previously adopted and resolved on, and the treaties so prepared, they handed to Mr Adams, on the 6th of this current month, who, since, has declared himself perfectly satisfied therewith.

"Wherefore, the said gentlemen, Deputies for Foreign Affairs, submit it to the consideration of their High Mightinesses to determine, whether it would not be proper and necessary to authorise them to conclude and sign with Mr Adams, the treaty and convention aforesaid.

"Whereupon having deliberated, it is found and judged right, that the said treaty and convention be drawn out afresh, and fair copies thereof made, in order that the finishing hand may be put thereto; and the said Lord Van Randwyk, and others, their High Mightinesses' Deputies for Foreign Affairs, are hereby requested and authorised to conclude and sign the said treaty and convention with the aforesaid Mr Adams.

W. Z. VAN BORSSELE.

Compared with the record.

H. FAGEL."

* * * * *

TO ROBERT R. LIVINGSTON.

The Hague, September 17th, 1782.

Sir,

You will naturally inquire, whether the neutral powers will continue their neutrality, or whether the neutral confederacy will be broken?

No certain answer can be given to these questions. We must content ourselves with probabilities, which are strong for the continuance of the neutrality. Who indeed should break it? The Emperor was thought to be the most unlikely potentate to accede to it; but he has acceded and has taken several steps, which prove that he will not break it, at least by leaning towards England. Sweden is the steady friend to France. The King of Prussia, whose affections and inclinations are certainly towards France and Holland, and alienated from England, would certainly at this age of life be too cautious a politician to wage war for England, against the Houses of Bourbon and Austria, Holland and America.

There remains only Russia and Denmark. What can Russia do? This is a maritime war. She cannot assist the English with land forces; a hundred thousand men would do no good to England, on land. Her boasted fleet, added to that of England, would only weaken it for several reasons. Among the rest, because England must maintain it with money, if not with officers and men, for cash is wanting in Russia. Denmark remains, but what can she do? Her Islands in the West Indies, and her trade are at our mercy, and she would not have force enough to defend her own, much less to assist England, if she should declare war.

A doctrine prevails that the acknowledgment of the independence of America, is a hostility against England, and consequently a breach of the neutrality. Our friends have sometimes favored this idea. The Duc de la Vauguyon has often expressed this sentiment to me; and if I am not mistaken, the Marquis de Verac has said the same to Mr Dana. If this opinion is not clear, it is very impolitic to favor it. The Court of France, in their public memorials, have denied it, and it would be difficult to prove it, either by the law or practice of nations. Sending or receiving Ambassadors, entering into peaceful commercial treaties, or at least negotiating at Philadelphia, the rights of neutral nations, is not taking arms against Great Britain.

But if an acknowledgment of our independence is a hostility, a denial of it is so too, and if the maritime confederation forbids the one, it forbids both. None of the neutral nations can take the part of Great Britain, therefore, without breaking to pieces that great system, which has cost so much negotiation, and embraces so great a part of mankind.

The neutral powers set so high a value upon it, and indeed make so great profit by it, that I think none of them will take the part of Great Britain. The connexions of the Duke Louis of Brunswick in Denmark and Russia, have set some little machines in motion, partly to favor him, and partly to hold out an appearance of something fermenting for the benefit of Great Britain. But these will never succeed so far as to draw any nation into the war, or to incline this Republic to make a separate peace.

It is to this source that I attribute certain observations that are circulated in pamphlets and in conversation, "that there is at present an incoherence in the general system of Europe. That the Emperor has deranged the whole system of the equilibrium of Europe, so that if ever the Northern Powers should think of stopping by a confederation the preponderance of the Southern Powers, Holland will be unable, on account of the demolition of the barriers, to accede to that confederation."

M. Magis, who has been eight and twenty years Envoy at the Hague from the Bishop of Liege, and who converses more with all the foreign Ministers here, than any other, has said to me, not long since, "Sir, the wheel rolls on too long and too rapidly one way; it must roll back again, somewhat, to come to its proper centre. The power of the House of Bourbon rises, and that of Great Britain sinks too fast, and I believe, the Emperor, although he seems perfectly still at present, will come out at length, and take the greatest part of any power in the final adjustment of affairs."

The Count de Mirabel, the Sardinian Minister, said to me, upon another occasion, "your country, Sir, will be obliged in the vicisitudes of things, to wheel round, and take part with England, and such allies, as she may obtain, in order to form a proper balance in the world." My answer to both was, "these sentiments betray a jealousy of a too sudden growth of the power of the House of Bourbon; but whose fault is it, if it is a fact, (which it does not appear to be as yet) and whose fault will it be, if it should hereafter become a fact? Why do the neutral powers stand still and see it, or imagine they see it, when it is so easy to put a stop to it? They have only to acknowledge American independence, and then, neither the House of Bourbon nor England will have a colorable pretence for continuing the war, from which alone the jealousy can arise."

The Prince de Gallitzin said, not long since, that the conduct of this Republic, in refusing a separate peace, &c. he feared would throw all Europe into a war, there were so many pretensions against England. I quote these sayings of foreign Ministers, because you express a desire to hear them, and because they show all the color of argument in favor of England that anybody has advanced. All these Ministers allow that American independence is decided, even the Ministers from Portugal, within a few days said it to me expressly. It is therefore very unreasonable in them to grumble at what happens, merely in consequence of their neutrality.

It is the miserable policy of the Prince of Orange's counsellors, as I suppose, which has set a few springs in motion here. M. Markow, one of the Ministers of Russia, and M. St Saphorin, the Minister from Denmark, are the most openly and busily in favor of England. But if, instead of endeavoring to excite jealousies and foment prejudices against the House of Bourbon, or compassion towards England, they would endeavor to convince her of the necessity of acknowledging American independence, or to persuade the neutral powers to decide the point, by setting the example, they would really serve England, and the general cause of mankind. As it goes at present, their negotiations serve no cause whatever, that I can conceive of, unless it be that of the Duke of Brunswick, and, in the end, it will appear that even he is not served by it.

I have the honor to be, &c.

JOHN ADAMS.

* * * * *

TO ROBERT R. LIVINGSTON.

The Hague, September 23d, 1782.

Sir,

As this is a moment of great expectation, news of the greatest importance from the East Indies, from the West Indies and North America, from Gibraltar, from Lord Howe's fleet, and the combined fleet, being hourly looked for, I took this opportunity to return to the Spanish Minister a visit, which I owed him.

He told me, that he trembled for the news we should have from Gibraltar. I asked him if he thought there would be a battle at sea. He answered, yes. He believed the combined fleet would meet Lord Howe, and give him battle. I said, in this case it will probably be but a running fight. His Lordship's object was to protect his convoy and get into the port, and he would not stop to fight more than should be unavoidable. D. Llano, however, said, that he believed the fate of Gibraltar would be decided before Howe could arrive, either the place taken, or the assault given over. By his advices, the attack was to begin the 4th or 5th of September. Howe sailed the 12th, and would be probably twenty days at least on his way, which would leave a space of twentyseven or twentyeight days for the attack, which would decide it one way or the other.

I did not think proper to tell him my own apprehensions, and I wish I may be mistaken, but I have no expectation at all, in my own mind, that the combined fleet will meet Howe; that there will be any naval engagement; or that Gibraltar will surrender. They will make a horrid noise with their artillery against the place; but this noise will not terrify Elliot, and Gibraltar will remain to the English another year, and Lord Howe return to England, and all Europe will laugh. England, however, if she were wise, would say, what is sport to you, is death to us, who are ruined by these expenses. The earnest zeal of Spain to obtain that impenetrable rock, what has it not cost the House of Bourbon this war? And what is the importance of it? A mere point of honor! a trophy of insolence to England, and of humiliation to Spain! It is of no utility, unless as an asylum for privateers in time of war; for it is not to be supposed, that the powers of Europe, now that the freedom of commerce is so much esteemed, will permit either England or Spain to make use of this fortress and asylum as an instrument to exclude any nation from the navigation of the Mediterranean.

From the _Hotel d'Espagne_, I went to that of France, and the Duc de la Vauguyon informed me that he had a letter from the Count de Vergennes, informing him that he had received, in an indirect manner, a set of preliminary propositions, as from the British Ministry, which they were said to be ready to sign, that he had sent M. de Rayneval to London, to know with certainty whether those preliminaries came from proper authority or not.

Thus we see, that two Ministers from England, and another from Holland, are at Paris to make peace. The Count d'Aranda is said to have powers to treat on the part of Spain. Mr Franklin and Mr Jay are present on the part of the United States, and M. Gerard de Rayneval is at London. Yet, with all this, the British Ministry have never yet given any proof of their sincerity, nor any authority to any one to treat with the United States. I believe the British Ministry, even my Lord Shelburne would give such powers if he dared. But they dare not. They are afraid of the King, of the old Ministry, and a great party in the nation, irritated every moment by the refugees, who spare no pains, and hesitate at no impostures, to revive offensive hostilities in America. If Gibraltar should be relieved, and their fleets should arrive from the West Indies and the Baltic, and they should not have any very bad news from the East Indies, the nation will recover from its fright, occasioned by the loss of Cornwallis, Minorca, and St Kitts, and the Ministry will not yet dare to acknowledge American independence. In this case, Mr Fox and Mr Burke will lay their foundation of opposition, and the state of the finances will give them great weight. But the Ministry will find means to provide for another campaign.

But to return to the Duc de la Vauguyon, who informed me further, that he had received instructions to propose to the Prince of Orange a new plan of concert of operations, viz; that the Dutch fleet, or at least a detachment of it, should now, in the absence of Lord Howe, sail from the Texel to Brest, and join the French ships there, in a cruise to intercept the British West India fleet. The Prince does not appear pleased with the plan. He has not yet accepted it. The Grand Pensionary appears to approve it, and support it with warmth. There is now a fine opportunity for the Dutch fleet to strike a blow, either alone, upon the Baltic fleet, or in conjunction with the French, or even alone upon the West India fleet. But the main spring of the machine is broken or unbent. There is neither capacity nor good will among those that direct the navy.

At dinner, in the course of the day, with M. Gyzelaar, M. Visscher, and a number of the co-patriots, at the _Hotel_ _de Dort_, they lamented this incurable misfortune. Some of them told me, that the sums of money, granted and expended upon their marine, ought to have produced them a hundred and twenty vessels of war of all sizes; whereas they have not one quarter of the number. They have no more than twelve of the line in the Texel, reckoning in the number two fifties; and they have not more than six or seven in all the docks of Amsterdam, Zealand, the Meuse and Friesland, which can be ready next year.

I have the honor to be, &c.

JOHN ADAMS.

* * * * *

A MEMORIAL CONCERNING THE BANK OF AMSTERDAM.[10]

The Bank of Amsterdam is much more simple than the denomination implies, in general, in the ideas of foreigners.

It differs widely from those of Venice, London, and others, which have a capital, formed by proprietors (actionaries) to whose profit these banks operate. That of Amsterdam makes neither commerce nor loan, but upon real specie, upon their intrinsic value, and upon matters in bars (ingots) of gold and silver.

This bank was erected in 1609. The magistrates of the city opened the project of the bank for the convenience of the merchants; but it is probable it was invented by the merchants themselves, as a remedy for the difficulty of payments, which became more and more considerable and embarrassing.

1. Because there was a great deal of foreign money in the city, with which they made payments reciprocally, amidst eternal disputes, concerning the value to be given or received.

2. Because, in the great number of coins struck by the States, diversely altered, and singularly divided, they had not all a constant circulation, notwithstanding the orders of the sovereign. Some were declined, even below the fixed value, and others were worth more.

3. The external cashiers, which the merchants employed in those times, as they do at present to receive the money, which is due to them in the city, and to pay in their turn what they owe, profited, of the two inconveniences beforementioned to make to themselves gain, which augmented the disorder and the vexation of payments, as well as in writings.

The merchants contrived then to make reciprocal payments, by a simple transposition of debit from one, to the credit of the other; but to this end, it was necessary to assure the validity of payments made in this manner, by a known and real value, and solidly placed under the authority and warranty of the city. The magistracy lent themselves to arrangements, which answered to all these conditions, so that a number of merchants and cashiers deposited at first at their pleasure, a sum in specie, more or less considerable, which was then designated by the commissaries of the bank, as ducats, or rix dollars and others, which money was placed in one of the vaults of the State-House, under the departments assigned for the carrying on of this bank. Those, who carried there their money, were credited for it, upon a leaf of the great book, which was shown to them, and from that time they might make reciprocal payments, as is practised at this day, without handling any cash, with this simple formula, viz.

"Gentlemen, the commissioners of the bank; please to pay N. N. five thousand florins. P. G.

Amsterdam, this ----."

By means of which, the book-keepers had not, and have not still, anything to do, but to debit P. G. with five thousand florins, and credit N. N. for the same sum; so that, if they had deposited each one ten thousand florins in cash, there would remain of it, to the credit of P. G. only five thousand florins, and N. N. would have fifteen thousand florins to his, whereof he might dispose, in his turn, the next day, in favor of one or more others having accounts open in the bank. This manner of making payments was found so convenient, and they took such a confidence in it, that all the bankers and merchants, even down to the petty traders, made haste to open an account, and to carry there money, more or less, relatively to approaching payments, which they had to make in bank; so that there was soon a sufficiency of specie deposited for a foundation of all the payments, which were from that time designed to be made in bank, viz. all the bills of exchange of above three hundred florins, drawn by foreigners upon Amsterdam, and in Amsterdam upon foreigners, all the merchandises of the East Indies, the wools of Spain, and some other articles.

It happened then, that they ceased to carry thither the monies of Holland, because the merchants, having occasion alternately, some of the money in bank for current money, and others, of current money for money in bank, they found a great facility in selling one for the other. From thence arose a commerce of agiotage, (_pour l'agio_) which had been already prepared, because it had been resolved, for good reasons without doubt, as in case of a flood of specie, &c. that the bank would not receive the monies, which they would deposit, but at five per cent below the current value; so that to have one thousand florins in bank to one's credit, it was necessary to deposit one thousand and fifty florins in current cash. Behold thus this agio establishment, and the money of the bank, worth five per cent more than the current money. This value of five per cent soon varied, because some one, who found that he had too much money in bank, and was in want of current, sought to sell the first for the second, found a purchaser, who would not give him more than four seveneighths per cent; that is to say, one thousand and fortyeight florins and fifteen stivers, for one thousand in bank. Thus of the rest in such sort, that at all times, when one would buy or sell the money in bank, there is no question but to agree upon the price of the agio, which is subject to a perpetual variation, and which is more or less high, according to the wants of epochs; as for example, when the company makes its sales, the merchants have greater want of money in bank to pay their purchases, which raises the agio, which falls again, when the company would sell that, which is come into them for current money, in which all payments are made for fitting out of vessels.

The payments of bills of exchange, being to be made, as it has been said, in bank money, the price of all exchanges of current money, which were heretofore fixed in bank money, for example, a crown tournois, of sixty sols, the intrinsic value of which, founded upon the price of the money mark, amounted to fiftyseven sols and threefourths, current money of Holland, was placed at fiftyfive sols of bank money; and thus of all the exchanges with all foreign countries; from whence it results, that having sold merchandises of a man of Bordeaux, the amount of which produces net one thousand and fifty florins current, or the credit of one thousand bank, the agio at one hundred and five, when they make him a remittance, or when he draws, they purchase so many crowns as are necessary for the one thousand florins bank, at fiftyfive sols fifteen derniers, which comes to the same thing as if they bought crowns for one thousand and fifty florins current, at fiftyseven and threefourths sols current. When any one would open himself an account in the bank, he goes there himself, and puts his signature upon a book to make it known, and they give him the page upon which his account shall be opened, which he ought always to place at the head of the billet, by which he pays.

They begin with debiting him with ten florins, once for all, after which he pays no more to the bank, but two sols for each bill that he writes, with which they debit him twice a year, when they make the balance of the books, viz. in January and July, at which epochs, each one is obliged to settle accounts with the bank, and to go and demand his pay, to see if they accord with the bank, under the penalty, after six weeks, if they fail or neglect, of paying a fine of twentyfive florins. The bank is shut at these epochs, and continues shut during fourteen or fifteen days, during which time, the bills of exchange sleep, and although they fall due the first day of the shutting, or any day following, they cannot be protested until the second or third day after the opening. There are other little shuttings of the bank, at the feasts, Christmas, Lent, Pentacost; and at the fair, which continue but a few days. One cannot dispose, till the next day, of the money, which enters by the bank, except the second days of the openings, and that of Pentacost. They call these days, the "returns of bills" (_revirement de parties_) or the "recounting," because they pay with that which they receive. One ought to take care, not to dispose beyond one's credit, for not only all the drafts whereof one has disposed are that day stopped, that is to say they are invalid, but one is condemned and obliged to pay a fine of triple of the whole, which one has disposed of more than that which one has in bank.

The person who writes, ought himself to carry his draft to the bank, or at least his attorney, between eight and eleven o'clock in the morning; those who come after until three o'clock, pay six sols fine for each draft. The merchants ordinarily pass a procuration, which it is necessary to renew once a year, to one of their clerks to carry their drafts and demand their payments, which no other person can do.

They transfer every day in the week, except Sunday, and during the shuttings, which are announced some weeks beforehand.

For arranging the merchants, and also for maintaining and favoring the price of matters, and specie of gold and silver, both foreign and that of the country, which are in strictness only of mere commerce, as our ducats and rix dollars, the bank receives them at a value determined and relative to the weight and the title known by the pay-master of the bank, but the sum which they there receive ought not to be below two thousand five hundred florins. The bank gives receipts for the specie, &c. which they deposit there for six months, which are to the bearer; so that, within the time, if the specie or matters exceed, the proprietor may sell his receipt to another, who pays him the surplus of what they are worth of the price at which the bank has received them, and this receipt may thus pass through several hands, as often happens by the idea which they form of the excess or of the deficiency. He who is the bearer of this receipt, may go and take away these matters or specie when he will, in paying at the bank, the value which it has advanced to him who has deposited them, and, moreover, half of a florin for the keeping of them the six months, both upon gold and upon bars of silver, and quarter of a florin upon Mexican dollars, rix dollars, and some other species of money. When this term is expired, one may cause to be renewed the receipts, in paying at the bank the half or quarter florin due thus from six months to six months; but if one let pass that time without taking away his deposit, or without renewing it, it is devolved to the bank, which keeps it to its profit.

The bank is governed under the inspection of the Burgomasters, by six commissaries, chosen and named by the Burgomasters from among the magistrates and principal merchants, under the care of whom is the deposited treasure. They furnish every year in the month of February, a balance of the bank to the Burgomasters, the youngest of whom goes down with them into the vaults, to verify and take account of the number of sacks, and of the specie contained in said balance, and forming the real and effective fund that each one has in the bank; and whatever may have been said or suspected upon this subject, it is very certain, that the fund rolling through the bank, is really there deposited in specie, ingots, and bars of gold and silver. This treasure is not, moreover, so immense as many people imagine. Some authors have written, (without doubt by estimation) that it went as far as three hundred millions of florins, which is not credible, when we consider the returns of the bills (_revirements de parties_) which are continually made, between those who have reciprocal payments to make among themselves. We know very nearly, that there are scarcely more than two thousand accounts open upon the books of this bank; so that in order to make three hundred millions of florins, it is necessary that these two thousand persons should have, one with another, one hundred and fifty thousand florins each in bank, which is beyond all probability, especially, if we consider that A and B having there each one, ten thousand florins, might reciprocally pay themselves sixty thousand florins per week, and thus make a circulation of transposition of one hundred and twenty thousand per week, with twenty thousand of _sign effective_. So that reducing the year to forty weeks of payment, with regard to the intervals which take place in the times of the shuttings, which is too large an allowance, it would result, that with fifty millions, there might be made twelve thousand millions of florins of payments per annum. According to this, and considering that the money in bank brings in no benefit, it is easy to imagine, that there is not much more than is necessary for the circulation of payments in bank, and that its treasure cannot be so considerable as many people imagine.

The bank never lends upon any species of merchandise, nor discounts any paper, nor makes any other profit than the half or quarter of a florin upon the gold and silver there deposited, and which, added to the ten florins for the opening of accounts, and two stivers for each draft of which I have spoken, serves to pay all the expenses of clerks and others, which is occasioned by the bank. The overplus, which is not very considerable, goes to the profit of the city.

No arrest or attachment can be made of any moneys which are in bank, under any pretext; the commissaries, book keepers, and others, who are in the service of the bank, are bound by oath to say nothing of what passes there. No man has a right to require of the bank, the reimbursement in specie of the sum with which he is credited; (_a_) each one having his account only in the receipts of the commissaries, which are in the term of six months. It is certain, that the primitive fund, the receipts for which they have suffered to be extinguished, is no longer demandable, and that one cannot force the commissioners to give specie, but it is not, therefore, the less true, that this fund exists really, and one ought not, and cannot doubt, that if the city was threatened with an inevitable invasion, and if the merchants should require their money, to place it elsewhere in safety, that the Burgomasters would cause it to be paid, by giving so many florins in current money, or value in bars or ingots, with which one should be credited.

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(_a_) The author is here mistaken. All those who have an account in bank, may demand to be paid in ready money, but they cannot require the agio. By consequence, while the bank shall have credit, and there shall be commerce at Amsterdam, which cannot be carried on without the money of the bank, and while there shall be, consequently, an agio, no man will go and demand in ready money, a sum which is worth five per cent more. The author has not well distinguished between the sum of money, or rather the specie, which one may redemand in the term of six months, by means of a receipt, and the money for which one is credited in bank. Behold the difference.

When they have received at the bank a certain quality of gold or silver, whether in money or in bars, for the value of which the bank has credited upon its books the proprietor, (not according to the value which this money has in commerce, but according to its weight and denomination,) in this case, the depositor, or he who holds the receipt, has the right, by means of this receipt, and in restoring to the bank the sum for which the first depositor had been credited, to withdraw this gold or silver, paying one half per cent for the keeping. But, the six months elapsed, the receipt becomes useless, the gold or silver remains in propriety to the bank, and the depositor must content himself to have received in its place, the sum which this gold or silver has been valued at, by which sum he has been credited upon the books, and whereof he might have disposed as he saw good. It is this sum that he has the faculty of redemanding in ready money, when, and as often as he judges proper, and as he is acknowledged upon the books to be a creditor for that sum; but they are not bound to restore him more than the net sum without agio.

No man will be, by consequence, mad enough to cause himself to be paid four or five per cent less than the money of the bank is worth in commerce. But if the money of the bank should be so discredited, that there should be no longer an agio, in that case, all the world would have a right to come and demand at the bank, the amount of the sums for which they are credited; and the bank, whose credit would be ruined, would be obliged, without controversy to make this payment, or to commit bankruptcy. It can never acquire a right of propriety in the capitals for which it has credit upon its books; but in case of restitution, it is not obliged to restore the same matters, or the same money for which it originally gave these credits. Over these the right is lost, with the expiration of the time established for the duration of the receipts, but it is held to the restitution of the amounts of the credits, such as they appear upon the books.

September 26th, 1782.

For the use of Congress, from

JOHN ADAMS.

FOOTNOTE:

[10] From Mr Adams's remarks, at the end of this Memorial, it would seem to have been furnished him by another hand.

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TO M. DE LAFAYETTE.

The Hague, September 29th, 1782.

My Dear General,

I should have written you since the 29th of May, when I wrote you a letter, that I hope you received, if it had not been reported sometimes that you were gone, and at other times, that you were upon the point of going to America.

This people must be indulged in their ordinary march, which you know is with the slow step. We have at length, however, the consent of all the cities and Provinces, and have adjusted and agreed upon every article, word, syllable, letter, and point, and clerks are employed in making out five fair copies for the signature, which will be done this week.

Amidst the innumerable crowd of loans, which are open in this country, many of which have little success, I was much afraid that ours would have failed. I have, however, the pleasure to inform you, that I am at least one million and a half in cash, about three millions of livres, which will be a considerable aid to the operations of our financier at Philadelphia, and I hope your Court, with their usual goodness, will make up the rest that may be wanting.

I am now as well situated as I ever can be in Europe. I have the honor to live upon agreeable terms of civility with the Ambassadors of France and Spain; and the Ministers of all the other powers of Europe, whom I meet at the houses of the French and Spanish Ministers, as well as at Court, are complaisant and sociable. Those from Russia and Denmark are the most reserved. Those from Sardinia and Portugal are very civil. The Ministers of all the neutral powers consider our independence as decided. One of those even from Russia, said so not long ago, and that from Portugal said it to me within a few days. You and I have known this point to have been decided a long time; but it is but lately, that the Ministers of neutral powers, however they might think, have frankly expressed their opinions; and it is now an indication, that it begins to be the sentiment of their Courts, for they do not often advance faster than their masters, in expressing their sentiments upon political points of this magnitude.

Pray what are the sentiments of the _Corps Diplomatique_, at Versailles? What progress is made in the negotiation for peace? Can anything be done before the British Parliament, or at least the Court of St James, acknowledge the sovereignty of the United States, absolute and unlimited?

It would give me great pleasure to receive a line from you, as often as your leisure will admit.

With great esteem, I have the honor to be, Sir, your most obedient servant,

JOHN ADAMS.

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TO JOHN JAY.

The Hague, October 7th, 1782.

Dear Sir,

Your favor of the 28th ultimo, was brought me last night. On Friday last I was notified, by the messenger of their High Mightinesses, that the treaties would be ready for signature on Monday, this day. I am, accordingly, at noon, to go to the Assembly, and finish the business. But when this is done, some time will be indispensable, to prepare my despatches for Congress, and look out for the most favorable conveyances for them. I must also sign another thousand of obligations at least, that the loan may not stand still. All this shall be despatched with all the diligence in my power, but it will necessarily take up some time, and my health is so far from being robust, that it will be impossible for me to ride with as much rapidity as I could formerly, although never remarkable for a quick traveller. If anything in the meantime should be in agitation, concerning peace, in which there should be any difference of opinion between you and your colleague, you have a right to insist upon informing me by express, or waiting till I come.

_8th._ The signature was put off yesterday until today, by the Prince being in conference with their High Mightinesses, and laying his orders to the navy before them.

With great regard, your humble servant,

JOHN ADAMS.

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TO ROBERT R. LIVINGSTON.

The Hague, October 8th, 1782.

Sir,

At twelve o'clock today I proceeded, according to appointment, to the State-House, where I was received with the usual formalities, at the head of the stairs, by M. Van Santheuvel, a Deputy from the Province of Holland, and M. Van Lynden, the first noble of Zealand, and a Deputy from that Province, and by them conducted into the Chamber of Business, (_chambre de besogne_) an apartment belonging to the Truce Chamber, (_chambre de treve_) where were executed the Treaty of Commerce and the convention concerning recaptures, after an exchange of full powers.