Chapter II: The Military State of North America (7)

Your own good sense will suggest to you many other most forcible arguments, as well as the proper time and manner of applying them. It is necessary to mention, that the sum of five million dollars may, perhaps, be sufficient for our present emergencies; but if a greater sum can be obtained, we shall thereby become more extensively useful. Whatever the grant may be, it will be proper that it be sent hither in some Spanish ships of war from the Havana, or advanced to us there; in which latter case, we will devise the means of bringing it away. Whether to ask for subsidies, or loans, as well as the terms on which either are to be obtained, these, Sir, are objects, which you are fully competent to determine upon. I have only to wish that your applications may meet with that success, which I am confident you will not fail to merit. As the means of facilitating your views, I shall apply to the Minister of his Most Christian Majesty here, to write on the same subject to the French Ambassador at Madrid. The generous conduct of France gives just ground of reliance on her friendly assistance; and you are too well convinced of this, not to act in the most perfect harmony with the servants of that Court, especially on an occasion so important as the present. I need not stimulate your activity, by observing how precious is every moment of time in those affairs, on which the fate of Empires depends; nor need I suggest the importance of a treaty, and particularly a subsidiary treaty with Spain, in that moment, when the judgment of Europe is to be passed on the fate of America. For, however impracticable it may be to subdue us, it is undoubtedly of moment to hasten the approach of that period, when the acknowledgment of our independence shall give the blessings of peace to so many contending nations. To spare the present lavish effusion of blood and treasure, is a serious object with those, who feel, as you do, the emotions of benevolence; and I am confident, that the patriotism, which has inspired your conduct, will prompt you to obtain a peace honorable for your country and advantageous to her friends. The only probable method to effect these things, is a thorough union of forces and resources, to reduce the pride and power of that aspiring nation, whose ambition embroils the universe.

With all possible respect, I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

ROBERT MORRIS TO JOHN JAY.

Philadelphia, July 7th, 1781.

Dear Sir,

This will accompany my former letter of the 4th instant, which you will perceive to be so written, as that it may be shown, if necessary, to the Spanish Minister. You will make such use of it as prudence may dictate. I would gladly now give you details of our situation and plans for reforming it, but I have not yet sufficiently obtained the one, nor matured the other. Whenever I am in capacity to apprize you fully of these things, you shall hear from me at large on the subject. At present I can only inform you that a sum of hard money will, from particular circumstances, afford us relief and turn to our advantage far beyond what might be supposed from the amount. Although I have stated the demand at five millions, yet I beg you will take as much as you can obtain, though it be far short of that sum. But at the same time, I repeat, that a very small one is not worth the acceptance. Knowing our wants to be great, you will judge properly as to what we can accept consistently with our dignity.

I enclose you a cypher, and with the duplicate of my letters I will send you another. Should both arrive safe, you will be so kind as to hand one to Mr Carmichael, letting me know which you keep and write by.

I have the honor to be your Excellency's most obedient and humble servant,

ROBERT MORRIS.

* * * * *

ROBERT MORRIS TO JOHN JAY.

Office of Finance, July 9th, 1781.

Dear Sir,

Observing by your correspondence with Congress, that you are put to a good deal of expense by American seamen arriving from captivity at Cadiz, where they also grow very troublesome, I offer the following proposal to your consideration. Authorise Mr Harrison, or whoever may be your agent at Cadiz, to enter into contracts with such Americans as present themselves for the bounty of their country, to proceed from Cadiz, in such ship or vessel as he may provide for the purpose, for such port within the United States as he may appoint, at the monthly wages of six or eight Spanish dollars, to be paid as soon after their arrival in America as the cargo of the vessel shall be landed. After they sign such contract, he is to supply their wants sparingly, until he collects a sufficient number to man a suitable vessel, which he may procure either by charter or purchase, whichever may be in his power, and shall appear most eligible at the time. If he charter, it should be on such terms that the owners risk their vessel, putting in their own master, and, if they choose it, part of the seamen. The vessel to be loaded with salt for account and risk of the United States; freight so much per bushel or so much per ton to America and back. But in that case, let it be always a condition, that the vessel may be ordered from the first place she arrives, to any one other port in America; because, it may happen that she will arrive where there cannot be got a cargo to load her back, or where the salt would be of no use.

If your funds will admit of it, and vessels can be furnished cheap, this would be the more eligible mode of doing the business, because I could then either send the vessels back, or sell, as might suit best. In case of purchase, they should be fast sailers, with good sails and rigging, well found and fitted, and if armed, so much the better. Honest, active, industrious, and faithful masters must be provided for these vessels, and they must all come addressed to my order, directed for this port, with liberty however to get into any safe port they can. The master to give me immediate notice of his arrival, when I shall give proper orders, or probably have them previously ready. An account of the moneys advanced to each person on board these vessels, as well as the cost and outfit of the ship and cost of the cargo, must be sent me by each vessel, in order that proper deductions may be made from the people, and proper credits be given for the costs. You will observe, I am duly empowered by Congress to export and import for account and risk of the United States; and I think this plan so likely to benefit the public, that I very freely give my sanction to it, provided you can find the money. Your agent must give me regular advice of every expedition, and inform you also whenever he commences them. When a ship is provided and a master appointed, all the men should sign articles for the voyage in the common form.

I am, Dear Sir, &c.

ROBERT MORRIS.

* * * * *

ROBERT MORRIS TO JOHN JAY.

Philadelphia, July 13th, 1781.

Dear Sir,

I enclose you in this packet the plan of a national bank, which I have been induced to adopt for the following reasons. The issuing of a large paper medium converted the coin of the country into a commodity, so that much of it was exported and the remainder concealed. The depreciation of our paper has so lessened our currency, that there is not a sufficiency for commerce and taxation, without creating by the latter such distress in the former, as must injure every order of men in the community. It is necessary, therefore, to fill up the deficiency in such proportion as it may be called, and with such medium as may preserve its value.

I have already in my letter of the 4th instant stated the want of ability in the people to lend, and of credit in the government to borrow. An additional reason, therefore, for establishing a bank is, that the small sums advanced by the holders of bank stock may be multiplied in the usual manner by means of their credit, so as to increase the resource, which government can draw from it, and at the same time, by placing the collected mass of private credit between the lenders and borrowers, supply at once the want of ability in the one, and of credit in the other.

An additional reason for this institution is, to supply the place of all our other paper, which it is my design to absorb as soon as possible, and thereby to relieve the people from those doubts and anxieties, which have weakened our efforts, relaxed our industry, and impaired our wealth. But this must not be done, without the substitution of other paper, for reasons which I have already assigned, and because that our commerce would suffer for the want of that facility in money transactions, which paper alone can give.

Finally, one very strong motive, which has impelled my conduct on this occasion, is to unite the several States more closely together, in one general money connexion, and indissolubly to attach many powerful individuals to the cause of our country, by the strong principle of self-love, and the immediate sense of private interest. It may not be, perhaps, improper to show and explain this plan to the Spanish Ministry. They will then perceive how, by an advance of money, they may in this instance increase our resources and our efforts in a degree much superior to the immediate sum, and they may be assured, that on a variety of other occasions, similar benefits will result from it. I take this opportunity, however, to observe to you, that I do not mean this, or any other communication, should be absolutely made. It is, on the contrary, my unalterable opinion, that a prudent Minister on the spot should be left to act with large discretionary power, being always furnished with such details, as will enable him to judge with propriety, and act with decision.

It will undoubtedly strike your observation, that the sum of four hundred thousand dollars is very small, considering the object which it is my design to effect. I acknowledge that it is so, and when I tell you, that I was very apprehensive that we should be unable to fill a larger subscription, and when I add, that it is far from certain we shall get all of this moderate sum, you will see still more clearly the force of those observations which I have already made. But it is weakness to be deterred by difficulties from a proper pursuit. I am, therefore, determined that the bank shall be well supported, until it can support itself, and then it will support us. I mean that the stock, instead of four hundred thousand dollars, shall be four hundred thousand pounds, and perhaps more. How soon it will rise to that amount, it is impossible to foresee. But this we may venture to assert, that if a considerable sum of specie can be speedily thrown into it, the period when its force and utility will be felt and known is not far off.

After I had determined to make the application to the Court of Madrid, which is contained in my letters, it was my next object to obtain for you such support as might materially favor your operations. For this purpose I have written to Dr Franklin, and have told him, that you would receive by this conveyance, and forward to him, copies of those resolutions and letters, which may be necessary to explain my appointment and powers. I lay this task on your Secretaries, because the want of clerks in my office, and the many things to be done, together with the short time allowed me by the departure of the vessel, prevent me from having duplicates made out. I have written to the Doctor to apply to the Court of Versailles, to further your negotiations with their influence. I am confident his application will not be unsuccessful; but how you may derive most benefit from the cooperation of the French Court, you best can tell. Major Franks, therefore, is instructed to take your orders for Passy, and return thence to Philadelphia; so that you will have an opportunity of communicating fully with the Doctor on any subject you think proper. You may write to me by any opportunity, if this should arrive safe, because our cypher will prevent you from being exposed to interested or impertinent curiosity.

To obtain for you still further assistance, I have applied (in the absence of M. de la Luzerne, who is gone to camp,) to M. de Marbois for letters to their Ambassador at the Court of Madrid. I have stated my views, my hopes, and wishes, with that candor which is proper on such occasions, and which I wish to preserve on all occasions. M. de Marbois has, in consequence, written a letter on the subject, in which he informs the Ambassador of our conversation, states the disorders of our finances, and makes polite mention of my operations, my designs, and abilities, as well as the confidence reposed in me by Congress, and by the people at large. He details the proposed plans, and particularly that of the Bank, and shows forcibly the advantages, which would result from a considerable advance of money by Spain. He assigns also very proper reasons to show why it ought to be considerable, if it be made at all. The great interest of France in this business, as well as the open and candid manner, which has marked all transactions I have hitherto had with the Minister of that nation, induces me to believe that this letter is more than a compliment, and that as it is intended, so it will operate to produce the desired effect.

That nothing in my power might be wanting to the success of a business, which you must be convinced I have very much at heart, I have also applied to Don Francisco Rendon, who at present acts here for Spain, and I have every reason to believe that he will write to the Spanish Court such a letter as I wish. But after all, much, my Dear Sir, must depend on your prudence, your activity, and your attentions to incline, to stimulate, to lead the Ministry into our views, to remove the obstacles, surmount the difficulties, and crush the procrastinations, which retard the completion of an object so essential to your country. I am happy to add, that I have the utmost confidence in your abilities, your industry, and integrity.

There is a possibility that money may be obtained from Portugal, and though I confess there is not a very solid ground to build on, and though it must be owned that appearances are against us, yet I think it best not too much to trust appearances, either favorable or unfavorable, and to leave nothing unattempted which may be useful. It was for reasons of this sort that my letter of the 9th instant, which I enclose you a copy of, was written to Congress. In consequence of it, on the 11th they passed a resolution, of which I also enclose you a copy, and have only to add, that you will act entirely according to your own discretion on this occasion. I cannot pretend to know the situation of the Court of Lisbon, and therefore I will not attempt to measure out a line of conduct to be pursued there. You are, for every reason, more competent to this business than I am, and therefore I submit it to your management entirely.

You will observe that a material part of my letter of the 9th remains unnoticed by Congress. The Committee had not yesterday reported upon it. Should anything be done previous to the departure of this vessel, you shall know it. But you are so well acquainted with the delays incident to public assemblies, that you will not be surprised if you hear nothing further on the subject.

It is unnecessary for me to make any other mention of Major Franks, except to inform you, that after a critical examination into his conduct by a court of inquiry, he was honorably acquitted of all improper connexion with his late General.[29] For the rest, you are perfectly acquainted with him, and will therefore take that notice of him which he deserves.

I am, Dear Sir, your most obedient and humble servant,

ROBERT MORRIS.

FOOTNOTE:

[29] Major Franks was Aid to General Arnold at the time his treachery was discovered, but he was honorably acquitted from all suspicion of having any knowledge of Arnold's designs.

* * * * *

_Plan of a Bank, referred to in the preceding Letter._

1. That a subscription be opened for four hundred thousand
dollars, in shares of four hundred dollars each, to be paid
in gold or silver.

2. That the subscription be paid into the hands of George
Clymer and John Nixon, or their agents.

3. That any subscriber of less than five shares, pay the
whole sum on the day of his subscription.

4. That every subscriber of five shares or upwards, pay one
half the sum on the day of his subscription, and the other
half within three months of that day.

5. That every holder of a share shall be entitled to vote by
himself, his agent, or proxy, properly appointed, at all
elections for directors, and that he have as many votes as he
holds shares. And that every subscriber may sell and transfer
his share or shares at his pleasure, the transfer being made
in the bank book, in presence and with the approbation of the
proprietor or his lawful attorney, the purchaser then to
become entitled to the right of voting, &c.

6. That there be twelve directors chosen from among those
entitled to vote, who at this first meeting shall choose one
as president.

7. That there be a meeting of the directors quarterly, for
the purpose of regulating the affairs of the bank; any seven
of the directors to make a board, and that the board have
power to adjourn from time to time.

8. That the board of directors determine the manner of doing
business, and the rules and forms to be pursued, appoint the
various officers, which they may find necessary, and dispose
of the money and credit of the bank for the interest and
benefit of the proprietors, and make from time to time such
dividends out of the profits as they may think proper.

9. That the board be empowered from time to time, to open new
subscriptions, for the purpose of increasing the capital of
the bank on such terms and conditions as they shall think
proper.

10. That the board shall, at every quarterly meeting, choose
two directors to inspect and control the business of the bank
for the ensuing three months.

11. That the inspectors so chosen shall, on the evening of
every day, Sundays excepted, deliver to the superintendent of
the finances of America, a state of the cash account, and of
the notes issued and received.

12. That the bank notes, payable on demand, shall by law be
made receivable in the duties and taxes of every State in the
union, and from the respective States, by the Treasury of the
United States, as specie.

13. That the superintendent of the finances of America shall
have a right at all times to examine into the affairs of the
bank, and for that purpose shall have access to all the books
and papers.

14. That any director or officer of the bank, who shall
convert any of the property, monies, or credits thereof to
his own use, or shall any other way be guilty of fraud or
embezzlement, shall forfeit all his share or stock to the
company.

15. That laws shall be passed making it felony, without
benefit of clergy, to commit such fraud or embezzlement.

16. That the subscribers shall be incorporated under the name
of the President, Directors and Company of the Bank of North
America.

17. That none of the directors shall be entitled to any
pecuniary advantage for his attendance on the duties of his
office of director, or as president, or inspector, unless an
alteration in this respect shall hereafter be made by the
consent of a majority of the stockholders at a general
election.

18. That as soon as the subscription shall be filled, Mr
George Clymer and Mr John Nixon shall publish a list of the
names and sums respectively subscribed, with the places of
abode of the subscribers, and appoint a day for the choice of
directors, to whom, when chosen, they shall deliver over the
money by them received.

_Observations on the above Plan._

ART. 1st. The objects and use of a bank are too obvious to need illustration. But it may not be amiss to take notice, that the first moment of its getting into action, the credit arising from its funds can be made use of by the government of the United States in anticipation of taxes, in consequence of special agreements to be made between their superintendent of Finance and the directors for that purpose; and as the capital and credit of the bank increase, so may this mode of anticipation be increased, to answer all the purposes of government. It is, however, evident at the first view, that four hundred thousand dollars are not sufficient for those purposes, nor those of private commerce, because no considerable circulation of paper can be founded on so narrow a basis; yet it is dangerous to attempt more. It is not possible to determine what is the highest sum, that could speedily be obtained by subscription. To ask more than could be obtained would have a fatal effect; to ask less is a partial evil. It is, however, an evil which admits of a remedy, as is provided in the plan.

ART. 2d. Before the corporation is formed, and much more so before the subscription is opened, by which the company is to be determined, no authority can be bestowed under the corporation. At the same time, it must be remembered, that in circumstances like ours, the loss of time involves in it the loss of many advantages. It becomes necessary, therefore, to appoint individuals to manage the subscription and receive the money. Mr Clymer and Mr Nixon having been formerly directors of the Bank of Pennsylvania, and being thereby generally known in that line, their names naturally present themselves for this purpose.

ART. 3d & 4th. The difference as to payments of large and small, is so common an incitement to subscribers, on such occasions, as to speak for itself.

ART. 5th. The subscribers, it is expected, will consist of citizens of every State in the Union; and, possibly, foreigners may subscribe or purchase bank stock; therefore the necessity and propriety of enabling them to vote by proxy; and this being a monied institution, it is just that every share be entitled to a vote.

ART. 6th. As the stockholders will mostly be absent from the place where the bank is kept, the number of twelve seems quite sufficient for the direction, as they will generally be chosen from the residents, and there ought to be room left for rotation among these.

ART. 7th & 8th. This plan, if adopted, will be considered as the constitution of the Bank, and therefore necessary to establish in it the powers of government by by-laws, rules, and regulations, and making dividends out of the profits; it is meant that they should annually pay a dividend of five or six per cent to the proprietors of the stock, and then settling the accounts of the bank, declare publicly, if necessary to give credit and confidence, what capital remains after such dividend. It will be observed, that such dividends are confined to be made out of the profits; consequently, the capitals can never be touched.

ART. 9th. When the directors, by paying a dividend out of the profits, establish the credit of the bank firmly in the minds of the stockholders, and by declaring the capital stock at the same time to be increased, give it equal confidence in the general opinion, there is little doubt but they may open new subscriptions for increasing the capital with certainty of success.

ART. 10th, 11th & 12th. As credit is the soul of all operations of this kind, every precaution should be taken to support it. In the course of things, much of the private property of America may be dependent on the conduct of affairs at the bank. Care, therefore, should be taken to prevent fraud and mismanagement. If the transactions were opened to public inspection, it would be impossible to do the business amidst the continued interruption; besides that, in this way, the national enemies would be apprized of our resources and operations. It is necessary, therefore, by instituting a check, to guard against the ill consequences which lie in the way, as the public will have much connexion with the bank, and, at times, deposit considerable sums of money in it, and always be availing themselves of its credit. The check should be in the hands of that officer who is appointed to manage the monied interests of America.

ART. 13th & 14th. The penalties on fraud and embezzlement are derived from the same source, and are supported by the same reasoning.

ART. 15th & 16th. The necessity of incorporating the bank is obvious, and the propriety of rendering the office of a director honorable, rather than lucrative, arises from this circumstance, over and above the difference between motives of fame and interest, that at present, any adequate salaries would absorb the profits, and in future the care of their own interests as stockholders will be an additional inducement to the first characters to accept the direction, for it is not doubted but every subscriber will increase his capital in the bank, so soon as he finds not only the national advantages it will produce, but sees clearly his private interest advanced beyond his most sanguine expectations.

* * * * *

ROBERT MORRIS TO JOHN JAY.

Office of Finance, August 15th, 1781.

Sir,

Enclosed you have a list of sundry bills of exchange drawn on you. I wrote you relatively to these bills on the 29th day of July last, with sundry enclosures explanatory of my letter. I am now to inform you, that the advices contained in that letter must, from particular circumstances, be totally disregarded. Should any of the bills, mentioned in the enclosed list, come to your hands, you will be pleased to protest them, and assign, if you please, as a reason therefor, that you have express instructions to that purport. The uncertainty, whether you have received my cypher, prevents my using it on this occasion. The importance of the subject obliges me to write, and as I send many copies, the risk of capture and inspection is too great to be more particular.

The gazettes will furnish you with our latest intelligence. That of New York announces the arrival of near three thousand Hessian troops, and the capture of the Trumbull frigate. Neither of these is a very agreeable circumstance. However, we must wait the course of events, and struggle, as well as we can, against adverse fortune. Our affairs to the southward wear no unpleasing aspect. And, although it is impossible, at this distance, to determine what effect European movements may have on American politics, our government acquires daily a firmness and stability, which will not easily be shaken.

I have the honor to be, &c.

ROBERT MORRIS.

* * * * *

JAMES LOVELL TO JOHN JAY.

Philadelphia, August 15th, 1781.

Sir,

Herewith you will receive according to the resolution of Congress of the 10th, such information relative to the surrender of Pensacola, and the subsequent arrival of the garrison at New York, as I have been able to obtain, which you will make use of according to your discretion, and the spirit of the enclosed resolution.

I am, Sir, your friend and very humble servant,

JAMES LOVELL.

_P. S. August 16th._--It appears to me not amiss to enclose to you a report of a committee on the 10th, as it stands negatived on the journals of Congress. J. L.

* * * * *

TO THE PRESIDENT OF CONGRESS.

St Ildefonso, September 20th, 1781.

Sir,

Your Excellency's favor of the 5th of July last, with the papers therewith enclosed, were delivered to me on the 29th ult. by Major Franks, whom the procrastination of the Minister still obliges me to detain.

The new commissions, with which Congress have honored me, argue a degree of confidence, which demands my warmest acknowledgments, and which, so far as it may be founded on an opinion of my zeal and integrity, they may be assured will not prove misplaced.

At the commencement of the present troubles, I determined to devote myself, during the continuance of them, to the service of my country, in any station in which she might think it proper to place me. This resolution, for the first time, now embarrasses me. I know it to be my duty, as a public servant, to be guided by my own judgment only in matters referred to my discretion, and in other cases faithfully to execute my instructions, without questioning the policy of them. But there is one among those which accompanies these commissions, which occasions sensations I never before experienced, and induced me to wish that my name had been omitted.

So far as personal pride and reluctance to humiliation may render their appointment contra-agreeable, I view it as a very unimportant circumstance, and should Congress, on any occasion, think it for the public good to place me in a station inferior and subordinate to the one I now hold, they will find me ready to descend from the one, and cheerfully undertake the duties of the other. My ambition will always be more gratified in being useful than conspicuous; for, in my opinion, the solid dignity of a man depends less on the height or extent of the sphere allotted to him, than on the manner in which he may fulfil the duties of it.

But, Sir, as an American, I feel an interest in the dignity of my country, which renders it difficult for me to reconcile myself to the idea of the sovereign independent States of America submitting, in the persons of their Ministers, to be absolutely governed by the advice and opinions of the servants of another sovereign, especially in a case of such national importance.

That gratitude and confidence are due to our allies, is not to be questioned, and that it will, probably, be in the power of France almost to dictate the terms of peace for us, is but too true. That such an extraordinary extent of confidence may stimulate our allies to the highest efforts of generous friendship in our favor is not to be denied, and that this instruction receives some appearance of policy from this consideration may be admitted.

I must, nevertheless, take the liberty of observing, that however our situation may in the opinion of Congress render it necessary to relax their demands on every side, and even to direct their Commissioners ultimately to concur (if nothing better could be done) in any peace or truce not subversive of our independence, which France determined to accede to, yet that this instruction, besides breathing a degree of complacency not quite republican, puts it out of the power of your Ministers to improve those chances and opportunities, which in the course of human affairs happens more or less frequently to all men. Nor is it clear, that America, thus casting herself into the arms of the King of France, will advance either her interest or reputation with that or other nations.

What the sentiments of my colleagues on this occasion may be, I do not as yet know, nor can I foresee how far the negotiation of the ensuing winter may call for the execution of this commission. Thus circumstanced, at such a distance from America, it would not be proper to decline this appointment. I will, therefore, do my best endeavors to fulfil the expectations of Congress on this subject, but, as for my own part, I think it improbable, that serious negotiations for peace will soon take place. I must entreat Congress to take an early opportunity of relieving me from a station, wherein, in character of their Minister, I must necessarily receive (and almost under the name of opinions) the directions of those on whom I really think no American Minister ought to be dependent, and to whom, in love for our country and zeal for her service, I am sure that my colleagues and myself are at least equal.

I have the honor to be, &c.

JOHN JAY.

_P. S._ I had an interview last evening with the Minister. Nothing was promised or denied. A person is to be named on Sunday to confer in earnest, as it is said, with me about the treaties. I do not despair, though having so many bills to pay, and no money, perplexes me extremely. The treasury of Spain is very low; much of the money for the expenses in this war costs them between thirty and forty per hundred, by mismanagement and want of credit. This ought not to be public. His Excellency still looks at your ships on the stocks, but I shall, without refusing, not consent to their changing masters. J. J.

* * * * *

TO THE PRESIDENT OF CONGRESS.

St Ildefonso, October 3d, 1781.

Sir,

My letter of the 25th of April last, by Mr Toscan, informed Congress, that on the 30th day of January preceding, I had the honor of receiving their letters of the 6th and 17th of October, 1780, the latter of which states particularly and ably the right of the United States to the free navigation of the river Mississippi, and enumerates the various reasons which induce them to decline relinquishing it.[30]

Among these reasons is the guarantee contained in the treaty with France. I hinted to Congress, that it was more than probable, that the contents of this interesting letter were well known to the French Court before it came to my hands. I am well persuaded, that this was the case. Shortly after receiving it, I took occasion to converse generally with the Ambassador on the subject of the Spanish pretensions to that navigation, and remarked, as it were inadvertently, how unreasonable it was for them to expect, that we should relinquish a territorial right, which both justice and the guarantee of France enabled us to retain. The thought did not appear new to him, but he strongly combated this construction of the treaty, and endeavored to explain it away by observing, that the guarantee could not comprehend claims, whose objects we had never possessed, &c. &c. I mention this only to show how improper it would have been for me to have communicated this part of your Excellency's letter to the Spanish Minister. It could have answered no good purpose, because, as France would have disputed this construction, Spain could with propriety have refused to admit the force of any argument drawn from it, and it might have done much mischief, not only by bringing on an unseasonable explanation between France and us, but also between Spain and France.

If I had given the Spanish Minister a copy of every other part of this letter, except those paragraphs which contain the reasoning in question, the omission might in future have been urged by France, who I verily believe has a copy of that whole letter, as an argument for my having yielded that point as not tenable; and though my opinion might not be of much consequence, it appeared to me most prudent to avoid doubts about it. For my own part I really did, and do think, that this guarantee does comprehend the navigation in question, though I also think, that no question should be raised about it at present. So circumstanced, I thought it most advisable to make no written communications of any parts or part of this letter, but from time to time to press every argument contained in it in the course of conversations with the Spanish Minister, except those drawn from the guarantee.

The Minister, however, did not at any time enter into the merits of these arguments, nor appear in the least affected by them. His answer to them all was, that the King of Spain must have the Gulf of Mexico to himself, that the maxims of policy adopted in the management of their colonies required it; and that he had hoped the friendly disposition shown by this Court towards us would have induced a compliance on the part of Congress.

As to a free port below the northern limits of West Florida, or anywhere else in the vicinity, the Minister sometimes wished certain regulations, some middle line might be devised, to reconcile the views of both parties, but he did not see how it could be done. The King had always been accustomed to consider the exclusive navigation of the Gulf of Mexico as a very important object to Spain, more so indeed than even Gibraltar, and he was persuaded, that his Majesty would never be prevailed upon to change his ideas on that subject. At other times he spoke clearly, and decidedly against it, saying, that it was their desire to exclude all nations from the Gulf, and that it made little or no difference, whether they admitted all nations or only one.

In my letter of the 25th of April last, I informed your Excellency, that on the 25th of March preceding, the Minister sent me word, that the money necessary to pay the bills due in April could not be advanced to me. The constant inconsistency I experienced between the Minister's promises and conduct often surprised, as well as embarrassed me. This last instance appeared to me to be really cruel; for if he had intended to withhold the necessary supplies, he ought to have given me notice of it, and not by keeping up my expectations to within a few days before the holders of the bills were to call upon me for their money, (and the bills of April amounted to eightynine thousand and eightythree dollars,) reduce me to such imminent danger of being obliged to protest them. Speaking on this subject with the French Ambassador, he intimated, that the Court expected I should have made them some further overtures respecting the Mississippi. I told him I had no authority to make any others than what I had already made. He replied, that the Minister believed I had. At that time I had received no letters, public or private, which gave me the least reason to suspect, that Congress had passed the resolution of the 15th of February last,[31] and it was not before the 18th of May, that a letter, I then received from Mr Lovell, enabled me to understand the reason of the Minister's belief. I then recalled to mind his frequent assurances of frankness, and of his speaking without reserve, often adding, that he was well informed of our affairs, and had minute information of what was passing at Philadelphia. There can be no doubt but that some copies of the President's letters to me have fallen into his hands, and that he supposed I had received others, though this was not in fact the case. Hence it appears, that the double miscarriage, if I may so call it, of these letters, had an unfavorable influence on our hopes of pecuniary aids, for it is highly probable, that in this instance they were so critically withheld on purpose to extort overtures from me, which the Minister, though mistaken, had reason to believe I was in a capacity to make.

Your Excellency will perceive from this, how important it is, that your letters, to and from your Ministers, be transmitted in a manner not subject to these inconveniences.

It was not, as I said before, until the 18th of May, that Mr Lovell's letter, enclosing a copy of the resolution of Congress of the 15th of February, reached me. It was brought to Cadiz by the Virginia, and it is remarkable, that none of the journals, or gazettes, nor the letter from Congress, which Mr Lovell gave me reason to expect, ever came to my hands. But as all the papers brought by the Virginia passed through the hands of the Governor of Cadiz, and afterwards through the Post Office, the suppression of some of them may be easily accounted for.

As Mr Lovell's letter did not appear to be official, nor the copy of the instruction of the 15th of February authenticated, I was much at a loss to determine how far it was to be considered as a measure finally concluded upon, and this difficulty was increased by another, viz. whether my having no letter on the subject from the President was to be imputed to the miscarriage of it, or to a reconsideration of the instruction in question; for I recollected, that resolutions had in some former instances been reconsidered, and either altered or repealed a few days after their date; for these reasons it appeared to me imprudent immediately to hazard overtures on the ground of this instruction.

The next day, the 19th of May, I thought it expedient to wait upon the Minister, and again renew the subject of our proposed treaty, expecting that if he was acquainted with the contents of my letter, something might drop from him in the course of conversation, which would lead me to judge of what he might, or might not know on that subject, and others connected with it.

He received me with more than usual cordiality. The conversation turned at first on the situation of the southern States, the late combat between the fleets in the Chesapeake, and General Greene's retreat. He appeared to apprehend much danger from what he called the delicate situation of our army there, and the blockade of the reinforcement intended for it, under the Marquis de la Fayette. I endeavored to remove such of his fears as appeared to be ill-founded, and (though without leaving room to suppose that the operations of Spain were indispensable to our safety,) represented to him the good policy and probable success of France and Spain's seriously turning their attention and force to the expulsion of the enemy from America. I then repeated what I had often before remarked to him, respecting the influence which the hesitations and delays of Spain in forming a treaty with us must naturally have on the hopes and fears of Britain. I announced to him formally the completion of our confederation by the accession of Maryland, and after dwelling on the advantages, which the States and their allies might expect from it, I endeavored to impress him with an opinion, that a cordial union between France, Spain, Holland, and America, supported by vigorous measures, would soon reduce the enemy to the necessity of listening to reasonable terms of peace.

The Count replied, generally, that he was very minutely informed of the state of our affairs. That the good dispositions of Congress towards Spain had not as yet been evinced in a manner the King expected, and that no one advantage had hitherto been proposed by America to Spain, to induce the latter to come into the measures we desired. That the views of Congress were such as would not permit his Majesty to form a treaty with the States, but that the King was an honest man, and I might again and again assure Congress, that he would never suffer them to be sacrificed to Britain, but on the contrary would with constancy maintain the friendship he had professed for them. That Britain had in vain attempted to deceive Spain; that Mr Cumberland had been sent here for that express purpose, but that, however possible it might be for Britain to vanquish, she would never be able to deceive Spain; that he wished Congress had been more disposed to oblige the King. He knew indeed that opposition in sentiments must necessarily prevail in public bodies, but that he hoped for the best. That I ought to preach to them forcibly, for that he thought a good preacher (_un bon predicateur_,) would do much good, thereby intimating, as I understood it, that Congress were not sufficiently apprised of the importance of Spain, and the policy of complying with her demands.

To all this I briefly remarked, that his Excellency's knowledge of American affairs must convince him, that it was not in their power to give his Majesty other proofs of their attachment than what they had already done, and that if he alluded to the affair of the Mississippi, I could only add one remark to those which I had often made to him on that head, viz. that even if a desire of gratifying his Majesty should ever incline Congress to yield to him a point so essential to their interest, yet it still remained a question whether new delays and obstacles to a treaty would not arise to postpone it.

The Count smiled, said he always spoke frankly, and that whenever I should announce to him my having authority to yield that point, I might depend on his being explicit, and candid, but as matters stood at present, he could say nothing on that head. He then informed me, that M. Gardoqui would set out for America the beginning of June. He said it might be in my power to furnish some useful hints and observations relative to the objects and conduct of his mission, adding that he reposed full confidence in me, and wished that I would also consider whether there were any particular reasons which might render it advisable, either to hasten or retard his going.

I suspected there was too much meaning in all this to admit of my entering into these discussions without time for further reflection; and, therefore, without seeming to avoid it, I told the Count I was happy to hear, that M. Gardoqui was so near his departure. That I considered myself much honored by his requesting my remarks relative to it, and that I was sure Congress would draw agreeable conclusions from his mission. That I should write by him to Congress, and as they would expect to learn from me the precise character in which they were to receive, and consider him, it became necessary, that his Excellency should favor me with that information, as well to enable me to transmit the proper advices to Congress, as to make the remarks which he had done me the honor to request. That I conceived this to be the more indispensable, because if M. Gardoqui should carry no public testimonials from this Court to Congress, he could only be considered by them as a private gentleman, and all his intercourse with Congress would of consequence be subjected to all the inconveniences resulting from it.

This topic carried the conversation off the delicate ground to which the Count had led it. He admitted the propriety of my being exactly apprized of the nature of M. Gardoqui's commission, said that as yet it was not decided, and therefore for the present could only give me his opinion of what it would probably be.

He observed that circumstances did not render it proper, that he should go as Minister, though perhaps it might he proper to give him contingent powers. That it was the common practice, where Courts sent to each other persons charged with their affairs, in a character below that of Minister, to give no other credentials than a letter of advice from the Minister of the Court sending to the Minister of the Court receiving the person in question. That the same practice was about to be pursued by Spain towards Prussia, and had been observed in other instances; therefore, he believed the like method would be adopted in this case. That if it should be purposed to give M. Gardoqui a letter authenticating his being an agent of Spain, it would be either to the President, or the Secretary of Congress, and asked me which of the two would be the most proper.

Whether he really was uninformed on this point, or whether he asked the question merely to try my candor, cannot easily be determined. I told him honestly, that Congress had no Secretary or Minister of State for general purposes, nor for foreign affairs particularly, and that neither the President nor Secretary of Congress could regularly be considered in that light. That there was a committee of Congress, whose appointment came near to that of Secretary for foreign affairs, but that I had heard Congress were about establishing a more proper and regular mode of conducting the affairs committed to that committee, and had perhaps already done it. That therefore it was difficult for me to give his Excellency a clear and decided opinion on the subject, and the more so as the letters which I daily expected to receive from the President, and which probably contained exact information relative to this very matter, had not yet come to my hands. He seemed very well satisfied, and extended his civilities so far as to say, that if at any time the warmth of his temper had led him into any harshness of expression, he hoped I would forget it. I told him, and that was the fact, that I did not recollect any part of his behavior to me, which required that apology. He desired me to wait upon him again on the Wednesday next.

As to the instructions of the 15th of February, I had every reason to wish it had been a secret to the Ministry. The propriety of them is a subject without my province. To give decided opinions of the views and designs of Courts always appeared to me hazardous, especially as they often change, and as different men will often draw different conclusions from the same facts. This consideration has constantly induced me to state facts accurately and minutely to Congress, and leave them to judge for themselves, and be influenced only by their own opinions.

I could not forbear, however, seeing the danger to which the proviso contained in that instruction exposed me. I have no reason to flatter myself, that, more fortunate than others, the propriety and policy of my conduct will not be drawn, at least impliedly, into doubt. If I should, on a persuasion that this cession would be unalterably insisted upon by Spain, yield that point, I am certain that many little half-created doubts and questions would be cast into, and cultivated in America. If, on the other hand, I should be of opinion that this point could be gained, and the event prove otherwise, it would soon be whispered, what rich supplies and golden opportunities the United States had lost by my obstinacy.

I permitted my mind to dwell on these considerations, merely that I might, by the utmost degree of circumspection, endeavor to render the uprightness and propriety of my conduct as evident as possible.

My only difficulty arose from this single question. Whether I could prudently risk acting on a presumption, either that Spain did not already, or would not soon be acquainted with the contents of this instruction. If such a presumption had been admissible, I should, without the least hesitation, have played the game a little further, keeping this instruction in my hand as a trump card, to prevent a separate peace between Spain and Britain, in case such an event should otherwise prove inevitable. Had Spain been at peace with our enemies, and offered to acknowledge, guaranty, and fight for our independence, provided we would yield them this point, (as once seemed to be the case) I should, for my own part, have no more hesitation about it now than I had then. But Spain being now at war with Great Britain, to gain her own objects, she doubtless will prosecute it full as vigorously as if she fought for our objects. There was and is little reason to suppose that such a cession would render her exertions more vigorous, or her aids to us much more liberal. The effect, which an alliance between Spain and America would have on Britain and other nations, would certainly be in our favor, but whether more so than the free navigation of the Mississippi is less certain. The cession of this navigation will, in my opinion, render a future war with Spain unavoidable, and I shall look upon my subscribing to the one as fixing the certainty of the other.