Chapter II: The Military State of North America (6)

Congress having since their instructions to you of the 29th of September, 1779, and 4th of October, 1780, relative to the claim of the United States to the free navigation of the river Mississippi, and to a free port or ports below the thirtyfirst degree of north latitude, resumed the consideration of that subject, and being desirous to manifest to all the world, and particularly to his Catholic Majesty, the moderation of their views, the high value they place on the friendship of his Catholic Majesty, and their disposition to remove every reasonable obstacle to his accession to the alliance subsisting between his Most Christian Majesty and these United States, in order to unite the more closely in their measures and operations three powers who have so great a unity of interests, and thereby to compel the common enemy to a speedy, just, and honorable peace; have resolved, and you are hereby instructed to recede from the instructions above referred to, so far as they insist on the free navigation of that part of the river Mississippi, which lies below the thirtyfirst degree of north latitude, and on a free port or ports below the same; provided such cession shall be unalterably insisted upon by Spain; and provided the free navigation of the said river, above the said degree of north latitude, shall be acknowledged and guarantied by his Catholic Majesty to the citizens of the United States in common with his own subjects. It is the order of Congress, at the same time, that you exert every possible effort to obtain from his Catholic Majesty the use of the river aforesaid, with a free port or ports below the said thirtyfirst degree of north latitude for the citizens of the United States, under such regulations and restrictions only, as may be a necessary safeguard against illicit commerce.

I am, &c.

SAMUEL HUNTINGTON, _President_.

* * * * *

TO JOHN JAY

February 20th, 1781.

Sir,

The President sends you instructions passed in Congress the 15th.

Personally, I am mortified that no letters from you since September 16th have reached us. We have not waited for the minute information promised in yours of that date, nor have we received any notice of your receipt of our instructions of October 4th, before we discussed anew the old subject. There has been unfair dealing with your despatches. I apprehend that we are allowed to see only sentiments somewhat different from yours. Perhaps the enclosed memorandum may be some clue to your scrutiny.

On the 10th of January, Congress resolved to establish an office for foreign affairs, which I hope will make your station more easy and reputable. I wish most earnestly to have a choice made of the secretary, to whom I may deliver all the papers in my possession connected with his duty.

I am, Sir, your friend and humble servant,

JAMES LOVELL,
_For the Committee_.

* * * * *

TO JOHN JAY.

March 9th, 1781.

Sir,

You will herewith receive gazettes and journals, also a resolve respecting the complete ratification of the articles binding the Thirteen States as a confederated body. The delay of that business appears now like all the other circumstances of our rise and growth; for the present is really the best of all times for that particular event. Our enemies have been ripening themselves for this capital _mentitis_.

We have no letters from you or Mr Carmichael later than those mentioned in my last, a copy of which attends this.

I am, Sir, your friend and humble servant,

JAMES LOVELL.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Madrid, March 22d, 1781.

Sir,

I ought, and wish to write your Excellency a long letter, but not by the post. The French fleet is not yet sailed. It will, in my opinion, be late in the summer before the fleet at Rhode Island will be reinforced. This Court has promised me one hundred and fifty thousand dollars. Some clothing is now shipping on account of Congress from Cadiz.

Russia has offered her mediation to England and the States-General. The latter have accepted it. The answer of the former (if given) is not known here. If she should refuse, Russia will probably take part with the Dutch; if she accepts, she will doubtless be obliged either to agree to terms consistent with the armed neutrality, or continue the war. The consequences of either are obvious.

M. Necker has published a state of the French finances, much to his honor and their credit. Perhaps a complimentary order to translate and publish it would be useful.

Mr Cumberland will set out on his return, through France, in a few days.

This letter is intended to go by Captain Trask, from Bilboa. I am told he will sail much sooner than had been given out, and that unless my letters go by this evening's post, they would arrive too late. Hence I am obliged to write in haste, and say little, there being no time for cyphers. I have received some letters from your Excellency. Their dates shall be mentioned another time.

I have the honor to be, &c.

JOHN JAY.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Madrid, April 25th, 1781.

Sir,

I have had the honor of receiving your Excellency's letters of the 6th and 17th of October last, with the enclosures. They arrived the 30th day of January last. There is more than reason to suspect, that the French Court were apprised of their contents before they arrived, and to believe that the construction of the treaty, by which the navigation of the Mississippi is supposed to be comprehended in the guarantee, does not correspond with their ideas on that subject. This Court continues pertinaciously to insist on our ceding that navigation, nor will they, as yet, listen to any middle line. Whether this be their real motive for declining a treaty with us at present, or whether the bills drawn upon me have inspired an expectation of profiting by our necessities, or whether they flatter themselves with a future majority of Congress on that point, or whether they choose, by continuing free from engagements with us, to be better enabled to improve to their advantage the casualties of the war, are questions which still remain undecided. Indeed, the movements of this Court in general, when compared with the great rules of national policy applicable to their situation, is so inexplicable, that I should not be surprised, if it should appear in future, that they had no fixed system whatever.

My last particular letter informed your Excellency, that having, in September last, been told that his Majesty could not advance us any money, but could be responsible for a loan to the amount of one hundred and fifty thousand dollars, I determined to continue accepting the bills, to attempt the loan, and by a representation of my situation to the French Court, endeavor to save the necessity of protesting them for non-payment.

I tried to borrow here on the security of this responsibility, but without the least success. I attempted it in France, but it would not do. I made the like attempt in Holland, and a gleam of hope appearing there, I was about improving it, when a letter from America informed me, that Mr Adams was authorised to execute the business, which had been committed to Mr Laurens. I had heard before of his being in Holland, but did not know the object which had called him there. Several letters passed between Messrs De Neufville and myself on the subject of this loan. The following is a copy of my last to them about it.

TO DE NEUFVILLLE & SON.

"Madrid, January 8th, 1781.

"Gentlemen,

"I have had the pleasure of receiving your favor of the 4th
ult. together with the one referred to in it.

"England has, it seems, declared war against the United
Provinces, and that in a style of such eminent superiority,
as I am persuaded will remind your countrymen, that the
United Netherlands are not comprehended among the territories
depending on the Crown of Great Britain.

"The English Ministry, by charging the States with having
acted under French influence, intend to alarm their national
pride, and, by making Holland the particular object of their
resentment, to sow the seeds of dissensions among them, and
render that most important Province obnoxious to the others.
The tone of the whole declaration is that of a nation going
rather to give correction to disobedient vassals, than to war
upon a free and independent people. It could have been
assumed only upon a persuasion, that the same supposed
timidity, to which they ascribed the long forbearance of the
Dutch under multiplied insults and injuries, would, on this
ostentatious display of terror, reduce them to the
humiliating measure of imploring forgiveness for having acted
like freemen, and purchasing peace at the expense of their
honor and liberty. Every other nation must expect better
things of you, and can never believe, that the present
generation will want firmness to assert the rights and
vindicate the honor of a Republic, which owes its very
existence to the glorious spirit and magnanimity of its
ancestors.

"It gives me great satisfaction to hear that Mr Adams has
conversed with you on the subject of a loan, and I am
persuaded that business will be much advanced by it. The
impropriety of two loans at a time is evident. My chief
motive in proposing one at the time I did was, that no time
might be lost by the absence of Mr Laurens, in prosecuting a
measure, which appeared to me highly useful to my country. I
have no views or objects separate from her, and, provided she
is effectually served, I am well content that the honor of
doing it should devolve on others. As the management of our
affairs in your country is committed to Mr Adams, I request
the favor of you to give him all the aid in your power. When
that gentleman went to Holland, I was ignorant of the
business which called him thither; and the first knowledge I
had of it was from America, long after Mr Laurens's capture.
It cannot now be necessary, that my name should appear in the
affair of the proposed loan, but should it be in my power to
be useful, Mr Adams may rely upon my zealous endeavors to
promote that, and every other measure for the public good.
Indeed, as matters now stand, delicacy forbids me to
interfere further than as a mere auxiliary to Mr Adams, to
whom, and to whose affairs I beg you to extend the influence
of that generous regard for America, which has placed you so
high in the esteem of

"Gentlemen, &c.

JOHN JAY."

My last particular despatches contained a copy of my letter to Count de Vergennes, requesting his aid. I received from Count de Montmorin an extract of a letter he had received from the Minister on that subject, in which he mentions the advances made to Dr Franklin, and the improbability of his being able to assist me, but concluded with saying, he would do his best. Shortly after, I received a letter from Count de Vergennes, which left me without hopes of succor from that quarter, except that Dr Franklin promised to accept my drafts to the amount of twentyfive thousand dollars.

In December following, I had a long and interesting conference with Count de Florida Blanca, the particulars of which it is not necessary minutely to enumerate by this opportunity. He expressly promised me one hundred and fifty thousand dollars. As the bills afterwards became due, I applied for money to pay them, and received it to the amount of thirtyfour thousand eight hundred and eighty dollars.

On the 15th of March I sent him a list of the bills payable in April, which amounted to eightynine thousand and eightythree dollars.

On the 25th, I was informed that the payment of this sum could not then be possibly made, but that the balance due on the one hundred and fifty thousand dollars promised, should be paid in the course of six months.

I communicated this matter to the Ambassador of France, and I must do him the justice to say, that his conduct on this occasion merits our thanks. All he could obtain from this Court was, that the amount of the April bills should be paid me in six equal monthly payments. This arrangement still leaving me unprovided with the means of satisfying the approaching demands, the Ambassador made personal application to a rich banker here, and on his personal credit and my consenting that the aforesaid six monthly payments should be applied to the repayment, obtained a loan for me of the whole sum wanted for April. I have passed my note for it, payable as soon as possible, with interest at the rate of six per cent. But this provision not extending beyond April, the fate of the bills payable in the succeeding months still remained dubious. That nothing in my power might be left undone, I sent on the 1st of April an express to Dr Franklin representing to him my true situation, and the injuries our credit would sustain from the protest of a single bill drawn by order of Congress. I desired him to communicate my letter to Colonel Laurens, to whom I also wrote on the subject. The express returned on the 19th instant, with a letter from Dr Franklin, by which I am authorised to draw upon him as occasion may require, to the amount of one hundred and fortytwo thousand two hundred and twenty dollars, towards paying the bills that become due between May and September.

My endeavors, however, to obtain further aids from Spain, shall not be relaxed. They seem very desirous of having the ships of the line, still unfinished on the stocks at Boston and Portsmouth. I have written to your Excellency on this subject, and have as yet received no answer. When I consider that the state of our finances has so long prevented the completing those ships, and the difficulties heretofore experienced in providing for those in service; when I recollect that the finishing and fitting out those ships will bring money into our country, and probably prepare the way for Spain's building more vessels in it, and lastly, when I consider how much these ships seem to be an object, I am almost prevailed upon to engage positively that Spain shall have at least one of them at prime cost. To exercise a power not clearly within the limits of those confided to me, is a delicate and disagreeable business. This is the first time I ever found myself disposed to hazard it, and yet so many circumstances lead me to think, that the public good would be promoted by the sale of these ships, that in case I should be again pressed on this subject, I believe I shall run the risk, from a persuasion that though such conduct ought not to be approved or encouraged by Congress, yet that when directed by the purest motives, and for the best purpose, it may obtain forgiveness.

Your Excellency will receive herewith enclosed a copy of the invoice of prize clothing, taken by Admiral Cordova, and presented by the Courts of France and Spain to Congress. The Count de Montmorin was very much an American on this occasion also. Mr Harrison, at Cadiz, has my orders to ship these goods in different vessels to America; part of them is now on the ocean, and the rest will soon follow. Your Excellency will receive a letter of advice with each parcel from Mr Harrison, of whom I have a very good opinion. He charges no commission for doing this business, being contented with the satisfaction of serving his country.

I have often mentioned to Congress the necessity of more effectual provision for our captive seamen; for want of money I cannot pay that attention to them, which their misfortunes and usefulness demand. I am already greatly in arrears on their account, and Mr Harrison, unless reimbursed, must soon stop his hand.

Portugal, though overawed by France and Spain, fears and perhaps loves England; her conduct will be determined by future events. The Minister here has promised me to interpose the good offices of his Court with that of Lisbon in our behalf. In time something good may result from it. I have not received a line from Mr Dohrman; I fear he is obliged to be very circumspect and cautious. The letters herewith enclosed from Dr Franklin were left open for my perusal, the short stay of my courier not allowing time for copies to be made of the information conveyed in and with them. The intercepted letters will be found interesting. One of them ascertains the price paid Arnold.

I perceive that Dr Franklin desires to retire. This circumstance calls upon me to assure Congress, that I have reason to be perfectly satisfied with his conduct towards me, and that I have received from him all the aid and attention I could wish or expect. His character is very high here, and I really believe that the respectability, which he enjoys throughout Europe, has been of general use to our cause and country.

Your Excellency may rely on my cordially adopting and pursuing any measures, that can conduce to the enlargement of Mr Laurens, and I regret that no occasion has yet offered in which I could do anything towards the attainment of that desirable object.

Mr Cumberland is on the road home. I much suspect that he was sent and received, from mutual views in the two Courts of deceiving each other. Which of them has been most successful is hard to determine. I believe in point of intelligence, England has had the advantage. As to the assurances of the Minister on this subject, they are all of little consequence, because on such occasions Courts only say what may be convenient; and therefore may or may not merit confidence. Time and circumstances will cast more light on this subject.

Whatever we may get from this Court is clear gain. We have no demands upon it, and if we had, are not in a capacity to insist upon them. In my opinion, therefore, it is of the utmost importance to avoid appearances of discontent, and rather to impress other nations with an opinion of the friendship of Spain for us, than otherwise. Indeed, I really believe the King means well towards us, and that the Prime Minister is also well disposed; but whether as much can be said of the Minister's confidential and I believe influential secretary, M. Del Campo, is by no means a clear point. It is proper that Congress should know, that the gentleman intended to succeed M. Mirales was recommended by M. Del Campo, with whom he has long been on terms of intimacy and friendship.

I have nevertheless no room to doubt of this gentleman's attachment to our cause, though I am inclined to think his conduct will be conformable in a certain degree with the views of his patron. This ought to remain a secret. He is still here, although he expects daily to be despatched.

I represented the case of the Dover cutter to the Ministry here the 22d of June last. In December I obtained a promise that it should be appraised, and the value paid to the captors, and two days ago I was again assured, that measures were taking to bring this matter to a conclusion. _Festina Lente_ seems to be the first maxim in Spanish politics and operations. It is the fashion of the country and strangers must conform to it.

I congratulate Congress on the victory obtained by General Morgan, and the success of the French in the Chesapeake. The enclosed gazette contains much good news from the East Indies. These events will probably give Lord George Germain other ideas than those which appear in his intercepted letters.

M. Toscan, who goes to reside as Vice Consul of France at Boston, will carry this letter to America, and perhaps to Philadelphia. He was ready to set out when my courier returned from France. I was obliged to delay my letters till his arrival, and M. Toscan has been so obliging as to wait till I could complete them.

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

JOHN JAY.

* * * * *

THE PRESIDENT OF CONGRESS TO JOHN JAY.

In Congress, May 28th, 1781.

Sir,

Your letter of the 6th of November last, detailing your proceedings from the 26th of May down to that period, has been received by the United States in Congress assembled. At the same time was received your letter of the 30th of November, with the several papers therein referred to.

It is with pleasure, Sir, I obey the direction of Congress to inform you, that throughout the whole course of your negotiations and transactions, in which the utmost address and discernment were often necessary to reconcile the respect due to the dignity of the United States with the urgency of their wants, and the complaisance expected by the Spanish Court, your conduct is entirely approved by them. It is their instruction that you continue to acknowledge, on all suitable occasions, the grateful impression made on these States by the friendly disposition manifested toward them by his Catholic Majesty, and particularly by the proofs given of it in the measures which he has taken, and which it is hoped he will further take, for preserving their credit, and for aiding them with a supply of clothing for their army. You are also authorised and instructed to disavow, in the most positive and explicit terms, any secret understanding or negotiation between the United States and Great Britain; to assure his Catholic Majesty, that such insinuations have no other source than the invidious designs of the common enemy, and that as the United States have the highest confidence in the honor and good faith both of his Most Christian and of his Catholic Majesty, so it is their inviolable determination to take no step, which shall depart in the smallest degree from their engagements with either.

Should the Court of Spain persist in the refusal intimated by its Minister to accede to the treaty between the United States and his Most Christian Majesty, or to make it the basis of its negotiation with you, the difficulty, it is conceived, may easily be avoided by omitting all express reference to that treaty, and at the same time conforming to the principles and tenor of it; and you are accordingly authorised so far to vary the plan of your original instructions. As his Most Christian Majesty however may justly expect, in a matter which so nearly concerns him, and which was brought into contemplation in the treaty he so magnanimously entered into with these States, the strongest marks of attention and confidence, you will not fail to maintain, in the several steps of your negotiation, a due communication with his Minister at the Court of Spain, and to include his interests as far as circumstances will warrant.

You are authorised to acquaint his Catholic Majesty that not only entire liberty will be granted, during the war at least, to export naval stores for the royal marine, but that every facility will be afforded for that purpose.

As Congress have no control over the captains of private vessels, however proper your hints may be of obliging them to give a passage to American seamen returning home from foreign ports, and to send an officer with despatches intrusted to them for foreign Ministers, it is impracticable to carry them into execution, you will therefore continue to provide for these objects for the present, in the best manner you can. As soon as the United States are in condition to establish consuls in the principal ports of the States with which they have intercourse, the difficulty will be removed; or if any other practicable remedy be suggested in the meantime, it will be applied.

The letter, of which you enclose a copy, from Stephen d'Audibert Caille, styling himself consul for unrepresented nations at the Court of Morocco, had before been received through the hands of Dr Franklin. If you shall have no objection to the contrary, you will correspond with him, and assure him in terms the most respectful to the Emperor, that the United States in Congress assembled entertain a sincere disposition to cultivate the most perfect friendship with him, and that they will embrace a favorable occasion to announce their wishes in form.

The generous and critical services rendered these United States by Messrs Neufville and Son, have recommended them to the esteem and confidence of Congress. You will signify as much to them, and that their services will not be forgotten, whenever a proper occasion offers of promoting their interests.

Your intimation with respect to complimenting his Catholic Majesty with a handsome, fast sailing packet-boat, claims attention; but the variety of public embarrassments will render the execution of it very uncertain.

Congress agree to an extension of Colonel Livingston's furlough, till the further order of Congress, which you will make known to him.

Your letter of the 16th of September last was received on the 4th day of December. No bills have been drawn on you since. That of the 28th of January was received on the 27th day of April; and in consequence of it the sale of the bills already drawn, but then remaining on hand, was countermanded.

By a letter from Mr Carmichael, dated the 22d of February, and received on the 27th of April last, Congress are informed that you had received despatches from them dated in October. These must have contained their instructions to you to adhere to the claim of the United States to the navigation of the Mississippi. A reconsideration of that subject determined Congress, on the 15th day of February last, to recede from that instruction so far as it insisted on their claim to the navigation of that river below the thirtyfirst degree of north latitude, and to a free port or ports below the same. On the receipt of this latter instruction, Congress have little doubt that the great obstacle to your negotiations will be removed, and that you will not only be able without further delay to conclude the proposed alliance with his Catholic Majesty, but that the liberality and friendly disposition manifested on the part of the United States by such a cession, will induce him to afford them some substantial and effectual aid in the article of money. The loss attending the negotiation of bills of exchange has been severely felt. A supply of specie through the Havana would be much more convenient and acceptable.

SAMUEL HUNTINGTON, _President_.

* * * * *

TO THE PRESIDENT OF CONGRESS.

Aranjues, May 29th, 1781.

Sir,

My last to your Excellency was of the 25th ult. and was the more particular, as Mr Toscan, who is appointed Vice Consul of France at Boston, and was the bearer of it; he sailed from Bilboa.

On the 18th instant I received from Mr Lovell three letters written on one sheet, viz. 20th of February, 9th and 31st of March last. No other copies of these letters ever reached me. They arrived at Cadiz in the Virginia; but the papers and journals said to accompany them never came to my hands, nor have I received any letters from your Excellency since January last.

On the 23d instant I waited upon his Excellency, the Count de Florida Blanca, and informed him of the facts stated in the above memorial. He said, he had not as yet heard anything upon the subject; that there was such an ordinance, and that prudence demanded that the admission of letters from abroad, especially in time of war, should be under the direction of government. That the situation of North America rendered new regulations necessary, that he would turn his thoughts to it, and do what should appear equitable. The next day I sent him Mr Harrison's memorial in a letter on the subject of it.

As this letter will go by the post, I must omit being minute about many matters, which I wish to communicate to Congress. Cyphers would probably impede the progress of this letter, if not stop it.

The captors of the Dover cutter still remain unsatisfied. My first memorial on that subject was dated and presented the 22d of June last. In the winter I was promised, that the prize should be appraised, and the value paid. At present I am assured that informations about it are taking.

M. Gardoqui, it is said, will set out in June. If a safe conveyance, which I am encouraged to expect in about a fortnight's time, should offer, I shall write your Excellency a long letter, and mention the dates of my former ones. If not, I shall take another method, not proper to explain in this letter, which, notwithstanding its different covers, will, I doubt not, be inspected before it reaches Cadiz.

I have the honor to be, &c.

JOHN JAY.

* * * * *

TO JOHN JAY.

Philadelphia, June 4th, 1781.

Sir,

I enclose a resolve of Congress, of May 24th, respecting an interest of Messrs Dumain and Lyon, with their petition annexed. I also add the copy of a resolve of September the 27th, 1780, and of a short letter of mine to a gentleman in Teneriffe, to serve as a memorandum in case you have not already procured justice for Mr Magnall and his associates, who took the Dover cutter. Mr McCarrick of Santa Cruz is knowing to all the circumstances of that affair. Magnall has been unfortunate from the time he left this place last October; he is now here. I do not know whether this is the matter referred to in the letter of Mr Carmichael of December 24th, where he says, "The Minister also engaged to do justice to certain Americans, who carried a British privateer to the Canaries." I send you an extract from instructions given to Dr Franklin concerning M. d'Audibert Caille, which may serve to govern your conduct towards that gentleman.

Your humble servant,

JAMES LOVELL.

* * * * *

TO JOHN JAY.

Philadelphia, June 15th, 1781.

Sir,

On the 4th I transmitted to you a resolve of May 24th, respecting an interest of Messrs Dumain and Lyon, with their petition annexed. You will herewith receive other copies of those papers by opportunities, which the party concerned will industriously find. I recommend the business afresh to your attention, those worthy men having already met with vexatious delays on this side of the water.

With much esteem I am, Sir, your friend,

JAMES LOVELL.

* * * * *

ROBERT MORRIS TO JOHN JAY.

Philadelphia, July 4th, 1781.

Dear Sir,

The derangement of our money affairs, the enormity of our public expenditures, the confusion in all our departments, the languor of our general system, the complexity and consequent inefficacy of our operations; these are some among the many reasons which have induced Congress to the appointment of a Superintendent of Finance. I enclose you copies of their resolutions on that subject, with such other papers as will fully explain to you my appointment and powers.

The use of this office must be found in a progress towards the accomplishment of these two capital objects, the raising a revenue with the greatest convenience to the people, and the expenditure of it with the greatest economy to the public.

The various requisitions of Congress to the several States, none of them entirely complied with, create a considerable balance in favor of the United States, and the claiming this balance is delivered over to me as revenue; while on the other hand, the dangerous practice of taking articles for the public service and giving certificates to the people, has created a very general and a very heavy debt. The amount of this debt is swelled beyond all reasonable bounds, nor can the extent of it be at present estimated. These things need no explanation, but it may be proper to observe, that if the certificates were not in my way, there is still an infinite difference between the demand of a balance from the States, and an effectual revenue. The latter can be obtained only in consequence of wise laws generally adopted, and as generally executed with vigor and decision. Were all that is necessary on these heads accomplished, something further would still remain to be done, in order that the produce of taxes should he subject to the sole and absolute disposition of the United States, or of their officers. To you who are acquainted with republican governments, it is unnecessary to observe on the delays which will arise, the obstacles which will be raised, and the time which will be consumed, in placing the revenue of America on a proper footing. Yet this is absolutely necessary before credit can be established, and the indispensable supplies obtained on terms of economy.

To reform our expenditure is an object of equal importance with the other, and it is in some degree within my power, as you will perceive it to have been subjected to my authority. But even here I find myself trammeled by the want of necessary funds. To contract, for instance, with any one, in order to obtain bread for our troops, requires the previous certainty of being able to make the stipulated payments. And so in every other case, I shall be unable to act with decision, unless I have the command of money. On the other hand, the people will bear with great reluctance the necessary imposition of heavy burthens, while they can perceive any want of arrangement, method, or economy, in the administration of their affairs.

If for a moment we suppose, that this country, amid the confusions of a revolution, and the rage of war, could be governed with all the regularity, wisdom, and prudence, of ancient and peaceable nations; yet we must be convinced, that no annual revenue she is able to raise could equal the annual expense in an offensive war against so powerful a nation, as that which we now contend with. A great balance, therefore, must remain, and it must be provided for by loans or subsidies.

To expect loans within the United States, presupposes an ability to lend, which does not exist in any considerable number of the inhabitants. The personal property, not immediately engaged, either in commerce or the improvement of lands, was never very considerable. Little as it was, it has been greatly diminished by the pernicious effects of a depreciating medium. This expedient, which was adopted in the beginning from necessity, and too pertinaciously adhered to in the sequel, has not only exhausted the funds of those who might have been willing to trust the United States, but it has so wounded our public credit, that even the will would be wanting if the ability existed, which as I said before, it really does not.

While we have neither credit nor means at home, it is idle to expect much from individuals abroad. Our foreign credit must be nurtured with tenderness and attention before it can possess any great degree of force, and it must be fed by substantial revenue, before we can call it into active exertion or derive beneficial effects from its application.

All reasonable expectation, therefore, is narrowed down to the friendly interposition of those sovereigns, who are associates in the war. From Holland, we can properly ask nothing; nor is she, I believe, in a capacity to grant it if we did ask. The active efforts of France require all the resources of that great nation, and of consequence the pecuniary aid which she affords us can but little advance the general cause, however it may relieve our immediate distress.

We must then turn our eyes to Spain, and we must ask either loans or subsidies to a very considerable amount. Small sums are not worth the acceptance. They have the air of obligation without affording relief. A small sum, therefore, is not an object to the United States, for they do not mean to beg gratuities, but to make rational requests.

As Congress have empowered you to remove the obstacles, which have hitherto impeded your negotiations, you will doubtless proceed with prudent despatch in forming the important treaties, which are to be the basis of our national connexion. Your own integrity, and the dispositions which you certainly feel, as the true representative of your Sovereign, to gratify the wishes of his Catholic Majesty, will give you just claim to the confidence and friendly support of his Ministers. And on the other hand, his Majesty's known piety and justice, will certainly induce him to facilitate a permanent union between the two countries, and to overturn that power, whose ambition is known, felt, and detested, throughout the habitable globe.

Having a perfect confidence in the wisdom of his Majesty's Ministers, I must request that you will submit to their consideration the reasons, which operate in favor of the advances we expect. In doing this, it will immediately strike you and them, that the enemy carries on the operations against us at an expense infinitely greater than that by which they are opposed. By enabling us, therefore, to increase our resistance, and redouble our offensive efforts, the British will be reduced to the necessity of increasing their force in America, or of submitting beneath a decided superiority. Either must be fatal to them. In the first instance, they will be crushed by the weight of expense; and, in the second, they must, while they lose an actual force, and part forever with the object in contest, feel the increased weight of the American arms, and make head against those resources, applied to a marine, which are now consumed in land operations.

Money ought, therefore, to be supplied to us from the Havana, which will at the same time save the risk of transporting it to Europe, while, as I have already observed, it must, when employed among us, absolutely ruin the common enemy. For, when once they are driven from the United States, they must, at a considerable expense, defend, or, at a great loss, relinquish the rest of their American possessions; and, in either case, the resources of this country will enable France and Spain to carry on operations for the subjection of the British Islands.

With respect to our finance, I am further to observe, that the resolutions of Congress, of the 18th of March, 1780, have neither been so regularly adopted by the States as was hoped and expected, nor been productive of those consequences, which were intended. It is unnecessary to travel into the causes, or to explain the reasons of this event. The fact is clear. The new money is depreciated, and there is the strong evidence of experience to convince us, that the issuing of paper, at present, must be ineffectual. Taxation has not yet been pursued to that extent, which was necessary. Neither is it reasonable to expect that it should. Time has been required under all governments to accustom the people by degrees to bear heavy burdens. The people of America have so patiently endured the various calamities of the war, that there is good reason to expect they will not shrink at this late hour from the imposition of just and equal taxes. But many arrangements are necessary to this purpose, and, therefore, an immediate pecuniary assistance is the more necessary to us. Our debts, under which I comprise, as well those of the individual States, as those of the Union, are but trifling, when we consider the exertions which have been made. The debt I have already mentioned on certificates is heavy, not from the real amount, but because it is beyond what the supplies obtained were reasonably worth, and because it impedes taxation and impairs its effects. But the amount of other debts so small, that a few years of peace would bring it within the bounds of a revenue very moderate, when compared with the wealth of our country. You well know the rapid increase of that wealth, and how soon it would relieve us from the weight of debts, which might be in the first instance very burdensome. There can, therefore, be no doubt, that we shall be able to pay all those, which it may be necessary to contract. But, as I have already observed, our great difficulty is the want of means in our people, and of credit in our government.

It gives me, however, very great pleasure to inform you, that the determined spirit of the country is by no means abated either by the continuance of the war, the ravages of our enemy, the expense of blood and treasure we have sustained, or the artifices, falsehoods, and delusions of an insidious foe. These last become daily more and more contemptible in America, and it appears equally astonishing, that they should longer attempt them here, or boast the success of such attempts in Europe. Uniform experience has shown the futility of their efforts, and the falsehood of their assertions. I know they take the advantage of every little success to vaunt the prowess of their troops and proclaim hopes of conquest, which they do not feel. But those, who know anything of our history or situation, must have the utmost contempt for all these gasconades. It is impossible they should make impression upon any but weak minds, and I should hardly have thought of mentioning them, but I learn by letters from Spain, that men, who are uninformed, have been led into misapprehensions from circumstances, which were here considered as trivial and even favorable.

I could hardly have supposed that our enemies had still the folly to repeat, as I am told they do, that there is an English party in America. Bribes and deceit have induced some wicked and weak men to join them; but when we consider the sums they have expended, and the falsehoods they have used, our wonder is not, that they have got so many, but that they have gained so few. The independence of America is considered here as established; so much so, that even those of equivocal character accustom themselves to cherish the idea; for the doubt is not now, whether an acknowledgment of it will take place, but when that acknowledgment will be made. Our exertions also, in the present moment, are not so much directed to establish our liberties, as to prevent the ravages of the enemy, abridge the duration and calamities of the war, and faithfully contribute to the reduction of a power, whose ambition was equally dangerous and offensive to every other.

All reasonings on this subject must be deeply enforced, by paying attention to what has happened in the Southern States. The progress of the enemy, while in appearance it menaced the conquest of that extensive region, tended only, in effect, to exhaust him by fruitless efforts, so that at length a handful of men have rescued the whole from his possession. The attack on Virginia (if the piratical incursions there can deserve that name) has been equally futile. The commanders may indeed have enriched themselves by plunder, and many worthy families have been distressed; but what is the consequence? Indignation and resentment have stimulated even the weak and indolent to action. The wavering are confirmed, and the firm are exasperated, so that every hour, and by every operation, they create enemies, instead of gaining subjects.

Our armies, though not very numerous, are powerful. The regular troops are so much improved in discipline and the habits of a military life, that they are at least equal to any troops in the world. Our militia are becoming more and more warlike, so as to supply the wants of regular troops, when the enemy (taking advantage of that convenience, which their ships afford them) transfer the scene of action from one place to another. The number of the British diminishes daily, and of consequence, our superiority becomes daily more decisive. The greatest plenty of subsistence is to be had for our armies, and the prospects from the present harvest are beyond all former experience. I wish I could add, that clothing and military stores were as abundant as those other requisites for war. This is not the case; our soldiers, indeed, are well armed, and, in some degree, they are clothed. We have also ammunition abundantly sufficient for the common operations of the field. But many of our militia are unarmed, and the sieges, which will be necessary to expel the enemy, must make a heavy deduction from our military stores.

The proposed siege of New York will soon be commenced, and would undoubtedly be successful, if we could maintain a decided superiority at sea. This must depend on contingencies, which are not in our power, nor perhaps in the power of any human being. I am not without hopes, even if we should not possess that superiority; but the expense will, from the want of it, be very considerably enhanced, and this is a circumstance which I cannot but deplore, for I repeat it again, the want of money can alone prevent us from making the greatest exertions. What our exertions have already been, our enemies themselves must acknowledge, and while from insidious views, they assert that they could not make an impression on us with ninety thousand soldiers and seamen, we are certainly authorised to conclude from this confession, that these States form a considerable balance in the scale against them.

I am now, therefore, again led to reiterate my request of a considerable sum of money from Spain; for I also again repeat, that small sums are not worth our acceptance, and I may add, they are unworthy the dignity of his Catholic Majesty. There can be no doubt, nor will the Spanish Ministry deny, that there is a considerable risk in transporting their money from the new world to the old, besides, that when expended there, it necessarily runs through the different channels of commerce, to feed the wants and invigorate the forces of the enemy. There is, therefore, a double policy in expending a part of it here, where it can not only be brought with safety and despatch, but be employed to an immense advantage, when compared with its effects in Europe. If it be asked, what advantages Spain will derive in particular during the war, and what recompense can be made her after the peace? I answer, that the weakening more the common enemy by a given sum, is in itself a great advantage, and that to do this, by sparing the blood of Spanish subjects, is an advantage still greater. I add, that when relieved from the enemy, we may assist her in the reduction of the Floridas and Bahamas, and, perhaps, of Jamaica. We shall then, also, be in a situation to secure Nova Scotia, thereby depriving Great Britain of her principal resource for ship-timber, and enable us to furnish that essential article to the navy of Spain, on cheaper and better terms, than it can be had elsewhere. On this last subject, I have further to observe, that there is hardly anything in which the maritime power of Spain is so much interested; for if we do not possess that country, it will be impracticable to furnish those supplies of masts and spars, which both France and Spain may stand in need of; so that, of consequence, their positive and absolute strength at sea will be the less, while that of the enemy is positively and absolutely greater. The comparative inferiority, therefore, will be still more considerable. Nor is this all. A marine requires men, as well as ships. The fisheries and collieries are two pillars, which support the marine of Britain, so far forth as seamen are required. But it is evident, that the fisheries could not long continue in her hands, if she were deprived of Nova Scotia. Here again, we are also to consider, that there is an immense difference between that patient resistance, whose opposition must at length weary the enemy into granting our independence, and those vigorous active operations, which may wrest from them their present possessions. Money is necessary for the latter, and I can say with confidence, that money alone is necessary.

But to return. The advantages which will flow to Spain at a peace, from giving effectual aid to our finances now, will be, in the first place, the common compensation of repayment, should his Catholic Majesty prefer loans to subsidies. The having expelled the English from the Bay of Mexico, and having, by that means, prevented the contraband commerce, so destructive to his revenue, will be another striking advantage, which cannot have escaped the penetration of his Ministers. But this is not all. The opening a port in East Florida, on the shores of the Atlantic, under proper regulations and restrictions, would enable us to carry on a commerce very advantageous to Spain, because we could furnish all such supplies of provisions, &c. as their possessions might stand in need of, and in return, take at port, cocoa, logwood, Nicaragua wood, and, indeed, any other commodities, which his Catholic Majesty should find it for the advantage of his dominions to permit the exportation of. Our commerce with Spain is also, in itself, a very considerable object. At this moment, we take from thence wine, oil, fruit, silk, cloth, &c. And after the conclusion of the war, our remittances of wheat, corn, fish, and naval stores, will be of very great consequence to the commerce of that country. Another article of commerce will be the building of ships, which can be had on cheaper and better terms here than elsewhere; and there can be no doubt but that the construction of ships in this country is equal, if not superior, to that in any other. Even now, ships might be built on his Majesty's account, though by no means so cheaply as in times of peace; besides that, as there is now no seasoned timber in the country, such ships would not be durable, and, therefore, it might, perhaps, be imprudent to get any more than are immediately necessary.

To all the other advantages, which would arise to his Catholic Majesty, I may add, (although that is not so properly within my department,) the security, which his dominions would derive from our guarantee. This is an advantage, which must be the more evident from a consideration of what might have happened, had this country continued in union with Great Britain, and had Great Britain pursued those schemes of universal empire, which the virtue and fortitude of America first checked, and which it is the object of the present war to frustrate. Our enemies do, I know, allege, that our weakness is unable to withstand them, and that our force is dangerous to Spain. The serious refutation of such absurd contradictions would involve an absurdity. It may not, however, be improper to observe, that the attention of this country, for a century past, has been, and for a century to come, most probably will be, entirely turned to agriculture and commerce. We must always, therefore, be useful neighbors, and never dangerous, except to those who may have views of dominion. Spain can never be in this predicament, though the British may and will. Their solicitude, therefore, to inspire apprehensions of us is, and ought to be, the strongest argument against entertaining them. But, if this evident reasoning did not exist, still the conduct of Congress, with regard to his Catholic Majesty, has been so just, and even generous, not only in being willing to secure his rights, but to gratify him by foregoing their own, that there is not room for the shadow of suspicion. This conduct, I should suppose, would alone have weight sufficient to procure what it is my object to request, if the other very cogent and conclusive reasons for it did not apply. And, after all, if it be considered how much greater is the interest of Spain at the vigorous continuance of the present war, than that of any other of the associates, I cannot permit myself one moment to doubt of your success. I am the more sanguine from the character of the Catholic King, and of his Ministers, for wisdom, candor, and integrity. These qualities will, I am sure, meet such corresponding dispositions in the United States, that the most thorough harmony and coalition must inevitably take place. This is an object of the greatest importance to both countries. Mutual benefits and the reciprocation of good offices will endear a connexion between them, and their interests require that this connexion should be of the closest kind.

In every point of view, therefore, that we can consider the subject, the advance I have mentioned must appear alike beneficial. If the Governor of Cuba, or any other person, were duly authorised, stipulations might even now be entered into for furnishing all necessary supplies of provisions to the fleets and armies of his Catholic Majesty, which would certainly facilitate their operations. The advance of money also by Spain would enable the fleets and troops of France to subsist cheaper than at present, because it would tend to raise the exchange here, which is now too low.