Chapter IV: Part 4

This I considered as an implied consent to comply with M. Cabarrus' offer, in case such a step should become absolutely necessary to save our bills; and I imagined he chose to delay it as long as possible, in hopes that the French Ambassador might in the meantime interpose his credit, as he had before done on a similar occasion. I was content that the matter should rest there, and would not hazard losing what I thought I had gained by requiring more at present.

I thanked him for this mark of favor, and then turned the conversation to Major Franks' arrival, and my anxiety to communicate some certain intelligence to Congress relative to the proposed treaty, and what they might expect on that head.

The Count went into a detail of excuses for the delays which had ensued since our leaving St Ildefonso. His indisposition and that of M. Del Campo, his forgetting to give M. Del Campo the papers, and M. Del Campo's neglecting to ask for them, were the chief topics from which these excuses were drawn. He said the Ambassador of France had talked to him about the matter eight days ago; and he promised me that the conferences should begin at Aranjues, to which place the Court would soon remove. He authorised me to communicate this to Congress, adding, that pressing business obliged him to postpone it till then, though I might now begin to speak on the subject to M. Del Campo if I pleased.

I remarked, that I had so often disappointed Congress by giving them reason soon to expect M. Gardoqui, that I wished to be enabled to give them accurate information on that point. He replied, that a variety of particular circumstances had intervened to prevent his departure, but that he _certainly_ should go unless he made personal objections to it, and that _I might tell Congress so_.

I rose to take my leave. _He repeated what he had before said respecting my sending M. Cabarrus to him_, and assured me of his disposition to do what he could for us. I again thanked him, and we parted in great good humor.

It is remarkable, that during the course of this conference, which was free and diffusive, the Minister did not mention a syllable of the King's discontents, nor hint the least dissatisfaction at the conduct of Congress towards this Court. I cautiously avoided making any harsh strictures on the delays I constantly met with, and though the Minister's excuses for them were frivolous and merely ostensible, yet it could have answered no good purpose to have declared that opinion of them, especially at so delicate a period of our affairs.

As many bills to a considerable amount would be payable on the 14th of March, I thought it high time that the Minister should declare his intentions at least a day or two before, and therefore I desired M. Cabarrus to wait upon the Minister, and confer with him on the subject. M. Cabarrus accordingly went to the Pardo on the evening of the 11th of March. He saw the Minister, and mentioned the purpose of his visit. The Minister said, I must have misunderstood him; that it was not until the last extremity that I was to send him, and he desired M. Cabarrus to inform him when that should arrive. M. Cabarrus repeated to me his former offers, and assured me that nothing on his part should be wanting.

The Madrid Gazette of the 12th of March contained a paragraph, of which you ought not to be ignorant. I shall therefore copy it _verbatim_, and add a translation as literal as I can make it.

"By a letter from the Commandant General of the army of operations at the Havanna, and Governor of Louisiana, his Majesty has advices, that a detachment of sixtyfive militia men and sixty Indians of the nations Otaguos, Sotu, and Putuami, under the command of Don Eugenio Purre, a captain of militia, accompanied by Don Carlos Tayon, a sub-lieutenant of militia, by Don Luis Chevalier, a man well versed in the language of the Indians, and by their great chiefs Eleturno and Naquigen, who marched the 2d of January, 1781, from the town of St Luis of the Illinois, had possessed themselves of the Post of St Joseph, which the English occupied at two hundred and twenty leagues distance from that of the abovementioned St Luis, having suffered in so extensive a march, and so rigorous a season, the greatest inconveniences from cold and hunger, exposed to continual risks from the country being possessed by savage nations, and having to pass over parts covered with snow, and each one being obliged to carry provisions for his own subsistence, and various merchandises, which were necessary to content, in case of need, the barbarous nations through whom they were obliged to cross. The commander, by seasonable negotiations and precautions, prevented a considerable body of Indians, who were at the devotion of the English, from opposing this expedition; for it would otherwise have been difficult to have accomplished the taking of the said post. They made prisoners of the few English they found in it, the others having perhaps retired in consequence of some prior notice. Don Eugenio Purre took possession in the name of the King of that place and its dependencies, and of the river of the Illinois; in consequence whereof the standard of his Majesty was there displayed during the whole time. He took the English one, and delivered it on his arrival at St Luis to Don Francisco Cruyat, the commandant of that post.

"The destruction of the magazine of provisions and goods, which the English had there (the greater part of which was divided among our Indians and those who lived at St Joseph, as had been offered them in case they did not oppose our troops) was not the only advantage resulting from the success of this expedition, for thereby it became impossible for the English to execute their plan of attacking the fort of St Luis of the Illinois; and it also served to intimidate these savage nations, and oblige them to promise to remain neuter, which they do at present."

When you consider the ostensible object of this expedition, the distance of it, the formalities with which the place, the country, and the river were taken possession of in the name of his Catholic Majesty, I am persuaded it will not be necessary for me to swell this letter with remarks, that would occur to a reader of far less penetration than yourself.

I will therefore return to our bills.

The 14th of March arrived, the bills then due were presented, and I prevailed upon the holders of them to wait till the next day at noon for my answer. As the last extremity in the most literal sense had now arrived, I presumed that the Minister would not think me too hasty in requesting his determination. I wrote him the following letter, and sent it by the post, which passes every evening between Madrid and the Court.

"Madrid, March 14th, 1782.

"Sir,

"Bills to a considerable amount have been presented to me this afternoon for payment. The holders of them consent to wait until tomorrow noon for my positive and final answer.

"Your Excellency is too well apprised of everything that can be said on this subject, to render it necessary for me to multiply observations upon it.

"I have no reason to expect aid from France, and I request the favor of your Excellency to inform me explicitly whether I may flatter myself with any, and what relief from the friendly interposition of his Majesty.

"I have the honor to be, &c.

JOHN JAY."

I thought it advisable to send a copy of the above letter to the Ambassador of France with the following note.

"Mr Jay presents his compliments to his Excellency, the Ambassador of France, and has the honor of transmitting herewith enclosed a copy of a letter he has written this evening to the Count de Florida Blanca.

"The Ambassador will perceive from this letter in what a critical situation Mr Jay finds himself. He requests the favor of the Ambassador's advice, and will do himself the honor of waiting upon him in the morning to receive it.

"_Madrid, Thursday Evening, March 14th, 1782._"

On this day, being Thursday, on which day in every week M. Cabarrus had for some time past kept an open table, M. Del Campo was unexpectedly one of the guests, having visited M. Cabarrus but once before on those days. Mr Carmichael was present. Some earnest and private conversation passed between M. Del Campo and M. Cabarrus. In the afternoon Mr Carmichael, by my desire, pressed M. Cabarrus to write to the Minister, that on the morrow our bills must be either paid or protested. M. Cabarrus replied, that he had already given that information to M. Del Campo, and that he would not risk that gentleman's displeasure by repeating it to the Minister, for it would look as if he doubted M. Del Campo's attention to it. Mr Carmichael informed me at the same time, that M. Cabarrus' manner appeared changed and somewhat embarrassed.

On the morning of the 15th of March, I waited on the Ambassador. He promised to speak to the Minister that morning to obtain his final answer, and if possible to render it favorable. On his return from the Pardo, he wrote me the following letter.

Translation.

"March 15th, 1782.

"Sir,

"I have just come from the Pardo. The Count de Florida Blanca had not received your letter of yesterday, but I supplied the deficiency by explaining to him your critical and difficult situation. He told me that you might accept the drafts to the amount of fifty thousand dollars, provided M. Cabarrus remains in the same disposition he has displayed hitherto, relative to the time he would wait for the reimbursement of the sums he has advanced, for this purpose. You can, therefore, make an arrangement with M. Cabarrus for the acceptance of the bills to the amount of forty or fifty thousand dollars, and show him this note as his security.

"I hope that this sum will relieve you from your present embarrassment, and give you time to adopt measures for meeting the bills, which shall hereafter become due.

"Although this information is not so fully satisfactory as I could wish, I take pleasure in communicating it to you, with assurances of my sincere and inviolable attachment.

THE COUNT DE MONTMORIN."

You will doubtless think with me it was very extraordinary, that the Minister should not have received my letter sent him yesterday by the Court courier. Why and by whose means it was kept back can only be conjectured. Had not the Ambassador's application supplied the want of it, a pretext for the Minister's silence would thence have arisen. The letter did not in fact miscarry, for the Minister afterwards received it. The Minister's caution in making his becoming engaged for the advances in question to depend on M. Cabarrus' persisting in the same dispositions he had lately declared, relative to the time he would be content to wait for a reimbursement, is somewhat singular, considering that his offers on that head had been repeatedly and explicitly communicated to the Minister, and to the Ambassador of France, both by him and by me. Immediately on receiving the Ambassador's letter, I gave it to Mr Carmichael with instructions to show it to M. Cabarrus, and bring me back his answer without delay, for I was then expecting the notary and others with bills.

Mr Carmichael returned and informed me, that he had communicated the letter to M. Cabarrus, and that instead of abiding by his former offer, to be content with the Minister's engaging to see him repaid in ten or twelve months, he insisted on being repaid in four months, in four equal monthly payments, and those payments secured by orders on the rents of the general post-office; and that M. Cabarrus promised either to write or speak to the Minister about it.

A new application to the Minister became necessary, and consequently further time and indulgence from the holders of the bills was to be solicited.

I told the notary, that I was in treaty with M. Cabarrus for the supplies I wanted, and that one or two articles remained to be adjusted, which could not be done till the next day.

I therefore requested him to suspend the protest for twentyfour hours more, and to apply to the holders of the bills for permission, adding that near twenty of them belonged to M. Cabarrus, and that from the friendly conduct of several of the others I had reason to flatter myself, that they would readily consent. He seemed surprised at what I said respecting my expectations from M. Cabarrus, and with a degree of indignation told me, that M. Cabarrus was more pressing than any of the others, and had already sent him two messages to conclude the matter with me without delay, that he had received one of the messages the day before, and the other that morning. He nevertheless cheerfully undertook to obtain permission from the holders of the bills to wait till the next afternoon, and succeeded in it.

The next morning, viz. the 16th of March, I waited upon the Ambassador. I mentioned to him these several facts, and told him, that my hopes from M. Cabarrus were at an end, for that exclusive of other circumstances it was not probable that, considering his lucrative connexions with government, he would risk treating the promise of the Minister, made in consequence of his own offer, with so little respect, as to demand such formal and unusual securities for the performance of it, unless there had been some previous concert, or indirect management in the case. The Ambassador declined assenting to this opinion. He promised to see the Minister, with whom he was that day to dine, and to send me his positive and final answer by four o'clock in the afternoon.

Having prepared the draft of a protest, I thought it would not be amiss to show it to the Ambassador. He returned it to me without making any other remark, than that it was rather pointed.

From the Ambassador's I went to M. Cabarrus'; he had not been at the Pardo, and was then at a meeting of merchants, to whose consideration his plan of a bank had been referred.

The Ambassador went to the Pardo and mentioned the matter to the Minister, who replied briefly, "that affair is already arranged with M. Cabarrus," but the Chevalier de Bourgoing, having been desired to bring back a decided answer, applied to M. Del Campo on the subject, who told him, "that they could not possibly comply with M. Cabarrus' terms; that he had written so that morning to M. Cabarrus by a private courier, and that in the evening the Minister would repeat it to him officially." On the Chevalier's mentioning this to the Ambassador, he was clearly of opinion that I had not any resource left, and, therefore, that the bills must be protested, and that the Chevalier should tell me so. I showed the protest, as translated into Spanish by M. Gardoqui, to the Chevalier. The original in English is as follows.

"Mr Jay says, that when he accepted the bills hereunto annexed, he had good reason to expect to be supplied with the funds necessary to pay them. That he has been disappointed in the expectations he was encouraged to entertain on this subject, and that his endeavors to obtain moneys for the purpose both here and elsewhere have been unsuccessful, although the bills which remain to be paid by him, together with all his other engagements, do not exceed twentyfive thousand pounds sterling. That these disappointments being unexpected, he cannot, for want of time, have recourse to Congress, and, therefore, finds himself reduced to the mortifying necessity of permitting them to be protested."

The Chevalier approved of the protest, but the notary on reading it observed, that the sum was really so trifling, that he thought it would do better to strike it out. The Chevalier was struck with this remark, and advised me with some earnestness to make no mention of the sum, for, said he, "it will appear very extraordinary, that you should be obliged to protest the bills of Congress for the want of such a sum, and people will naturally turn their eyes towards France, and ask how it happened that your good allies did not assist you; it will look as if we had deserted you."

I replied, that since the bills must be protested, I was content that my true situation should be known. I admitted his inferences to be just, and naturally flowing from the facts, adding, that as France knew my situation and had withheld relief, she had so far deserted us; but that I was, nevertheless, mindful of the many proofs we had received of her friendship, and should not cease to be grateful for the ninetynine acts of friendship she had done us, merely because she had refused to do the hundredth.

In short, I directed the notary to recite this protest _verbatim_.

This protest was drawn at my leisure, and with much consideration. It operated as I expected, and I am persuaded you will see the reason of each sentence in it without the aid of my comments. I will only remark, that I was at first induced to insert, and afterwards to refuse striking out the sum, lest from leaving it uncertain, the public might have had room to conjecture, or individuals to insinuate, that I had imprudently run into such rash and expensive engagements, as to render it improper for Spain or France to afford me the necessary supplies.

Nor did it appear to me that both of them should have reason to be ashamed of permitting our credit to be impeached and injured for such an unimportant sum. Both Courts were blamed, and we not only acquitted, but pitied by the public.

I ought to inform you, that the sum which I really wanted did not amount to twentyfive thousand pounds, but as some straggling bills frequently made their appearance, and it could not be foreseen how much those which might still be behind would amount to, I thought it advisable to make a considerable allowance on that score; for in case I should have asked for less than might afterwards have proved indispensable, I should, doubtless, have been put to great difficulties in obtaining a supply for the deficiency.

In justice to the bankers who held the protested bills, I must say that they in general appeared disposed to show me every reasonable indulgence. The house of Joyes and Sons, though considered as anti-American, were particularly civil. They offered to take such of the bills as had been remitted to them on themselves, provided I would only pass my word for the payment of them within a few weeks; but as I had no assurance of funds, I could not risk it. Besides, unless all the bills due could have been suspended on the like terms, it could have answered no purpose, because the difference of protesting a few bills more or less was unimportant. The conduct of Don Ignacias Salaia, the notary, was so particularly and singularly generous, that I cannot forbear mentioning it. Though without expectations, and uninfluenced by promises from me, he behaved as if the case had been his own, and proved the sincerity of his professions by doing everything in his power to serve me. On perceiving how much he was engaged in my favor, I did not choose to lessen the appearance of its being disinterested by promises of rewards. But after the bills were protested, and he could be of no further use, I sent him a gold piece of sixteen dollars, as an acknowledgment for the trouble I had given him. He returned it with an assurance, that he wished to serve me from other motives, and the next day waited upon me to thank me for that mark of attention, and again to assure me that his best services were always at my command.

When the bills were protested, and M. Cabarrus' conduct mentioned in his presence, the poor fellow literally shed tears. I was much affected by the warmth and generosity of this man's heart, and should not have readily pardoned myself, had I neglected to bear this testimony to the goodness of it.

During the whole time that this matter was in agitation, that is from the 11th to the 16th of March, and for sometime afterwards, M. Cabarrus did not come near me.

On the 18th I wrote a letter to Dr Franklin informing him of the protest, and reciting the reasons assigned for it. I also hinted the propriety of taking up the bills at Paris, if possible.

The national pride of the Ambassador of France was hurt by this event; I am sure he regretted it as disreputable and impolitic. I remarked to him, that most of our cross accidents had proved useful to us, and that this might save us the Mississippi. For I thought it more prudent to appear a little incensed than dispirited on the occasion. I suspect that there has been an interesting conversation between the two Courts about us. He told me this winter, that he believed Spain wished to modify our independence, and to keep herself in a situation to mediate between us and England at the general peace. He did not explain himself further. As great successes on our part must operate against such designs, the Spanish Minister can neither rejoice in, nor be disposed to promote them; and this may help both to account for the little impression made by the capitulation of York, and for their conduct as to our bills and propositions, &c. I am sure that they fear us too, and the more, perhaps, as they have misbehaved towards us.

Not many days elapsed before a special courier from Paris brought advices to this Court, that the British Parliament had resolved to advise the King to cease all offensive operations against us, &c. This, and the subsequent debates and resolutions of Parliament relative to the American war, made a deeper impression here in our favor than any event which has happened since my arrival. New ideas seemed to pervade the whole Court and people, and much consultation as well as surprise was occasioned by it.

On the 26th of March I received the following letter from Dr Franklin, from the hands of M. Cabarrus, to whom I behaved, on that occasion, with reserved and cold politeness.

"Passy, March 16th, 1782.

"Dear Sir,

"I have received your several favors of January 30th, February 11th and March 1st, and propose to write fully to you by the next post. In the meantime this line may serve to acquaint you, that I paid duly all your former bills drawn in favor of M. Cabarrus, and that having obtained a promise of six millions for this year, to be paid me quarterly, I now see that I shall be able to pay your drafts for discharging the sums you may be obliged to borrow for paying those upon you, in which however I wish you to give me as much time as you can, dividing them so that they may not come upon me at once. Interest should be allowed your friends who advance for you. Please to send me a complete list of all the bills you have accepted, their numbers and dates, marking which are paid, and what are still to pay.

"I congratulate you upon the change of sentiments in the British nation. It has been intimated to me from thence, that they are willing to make a separate peace with us exclusive of France, Spain, and Holland, which so far as relates to France is impossible; and I believe they will be content that we leave them the other two; but Holland is stepping towards us, and I am not without hopes of a second loan there. And since Spain does not think our friendship worth cultivating, I wish you would inform me of the whole sum we owe her, that we may think of some means of paying it off speedily.

"With sincerest regard, I am, &c. &c.

B. FRANKLIN.

"_P. S._ The Marquis de Lafayette has your letter."

I answered this letter as follows, by a French courier.

"Madrid, March 19th, 1782.

"Dear Sir,

"On the 18th instant I informed you of my having been reduced, by M. Cabarrus' want of good faith, to the mortifying necessity of protesting a number of bills, which were then payable.

"Your favor of the 16th instant reached me three days ago. It made me very happy, and enabled me to retrieve the credit we had lost here by those protests. I consider your letter as giving me sufficient authority to take the necessary arrangements with the Marquis d'Yranda for paying the residue of my debts here, as well as such of the protested bills as may be returned for that purpose.

"The account you request of all the bills I have accepted is making out, and when finished shall be transmitted by the first good opportunity that may offer. You may rely on my best endeavors to render my drafts as little inconvenient to you as possible.

"The British Parliament, it seems, begin to entertain less erroneous ideas of us, and their resolutions afford a useful hint to the other powers in Europe. If the Dutch are wise, they will profit by it. As to this Court, their system (if their conduct deserves that appellation) with respect to us has been so opposite to the obvious dictates of sound policy, that it is hard to divine whether anything but experience can undeceive them. For my part, I really think that a treaty with them daily becomes less important to us.

"That Britain should be desirous of a separate peace with us is very natural, but as such a proposal implies an impeachment of our integrity, I think it ought to be rejected in such a manner as to show that we are not ignorant of the respect due to our feelings on that head. As long as France continues faithful to us, I am clear that we ought to continue hand in hand to prosecute the war until all their, as well as all our, reasonable objects can be obtained by a peace, for I would rather see America ruined than dishonored. As to Spain and Holland, we have as yet no engagements with them, and therefore are not obliged to consult either their interest or their inclinations, further than may be convenient to ourselves, or than the respect due to our good allies may render proper.

"France, in granting you six millions, has acted with dignity as well as generosity. Such gifts, so given, command both gratitude and esteem, and I think our country possesses sufficient magnanimity to receive and remember such marks of friendship with a proper degree of sensibility. I am pleased with your idea of paying whatever we owe to Spain. Their pride, perhaps, might forbid them to receive the money. But our pride has been so hurt by the littleness of their conduct, that I would in that case be for leaving it at the gate of the palace, and quit the country. At present such a step would not be expedient, though the time will come when prudence, instead of restraining, will urge us to hold no other language or conduct to this Court than that of a just, a free, and a brave people, who have nothing to fear from, nor to request of them.

"I am, &c. &c.

JOHN JAY."

On receiving Dr Franklin's letter I sent for my good friend the notary, and desired him to make it known among the bankers, that I had received supplies equal to all my occasions, and was ready to pay to every one his due. He received the commission with as much pleasure as I had the letter. He executed it immediately, and our credit here was re-established.

M. Cabarrus became displeased with himself, and took pains to bring about a reconciliation by the means of third persons, to whom I answered, that as a Christian I forgave him, but as a prudent man, could not again employ him. As this gentleman has suddenly risen into wealth and importance, and is still advancing to greater degrees of both, I shall insert a letter, which I wrote in reply to one from him on the subject.

TO M. CABARRUS.

"Madrid, April 2d, 1782.

"Sir,

"I have received the letter you did me the honor to write on the 29th of March last.

"As soon as the examination of your accounts shall be completed, I shall be ready to pay the balance that may be due to you, either here or by bills on Paris.

"I should also be no less ready to subscribe a general approbation of your conduct, if the latter part of it had been equally fair and friendly with the first.

"Although it always affords me pleasure to recollect and acknowledge acts of friendship, yet, Sir, I can consider only one of the five instances you enumerate as entitled to that appellation. I shall review them in their order. You remind me,

"1st. _That you risked the making me considerable advances, at a time when I could only give you hopes, and not formal assurances of repayment._

"I acknowledge freely and with gratitude, that (exclusive of the commissions due to you for paying out the various sums I had placed in your hands) you did advance me between twenty and thirty thousand dollars; but as the United States of America were bound to repay it, and I had reason to expect supplies to a far greater amount, I conceived, and the event has shown, that you did not run any great risk, although the uncertainty of the time when these supplies would be afforded, prevented my giving you positive and formal assurances of the time and manner of repayment.

"2dly. _That you augmented these advances to quiet the demands of the Marquis d'Yranda._

"Permit me to remind you, that this circumstance might have been more accurately stated. The fact was as follows. I had received about fifty thousand dollars, which, by a prior contract, I had agreed to pay the Marquis on account of a greater sum borrowed from him in paper. The sum in question was in specie. You and others offered to exchange it for paper at the then current difference. The preference was given to you. Under that confidence, and for that express purpose, the specie was sent to your house, and you did exchange it accordingly. With what propriety, Sir, can you consider this transaction in the light of making advances, or lending me money to quiet the Marquis d'Yranda? It is true that by sending the money to your house I put it in your power, by detaining part of it, to repay yourself what you had before advanced. But, Sir, such a proceeding would have been a flagrant breach of trust; and I cannot think any gentleman ought to give himself, or expect to receive, credit for merely forbearing to do a dishonorable action.

"3dly. _That you gave me, on my signature, the money for which I applied to you for my personal use, without detaining any part of it on account of the balance then due to you._

"The transaction you allude to was as follows. I had authority to draw from his Excellency, Dr Franklin, on account of my salary. It happened to be convenient to me to draw for a quarter. You agreed to purchase my bill on him, and to pay me in specie at the current exchange. As it was post day, I signed and sent you the bill before I had received the money. These are the facts, and it seems two favors are to be argued from them. First, that you did not scruple my signature, or in other words, that you took my bill. To this I answer, that you had no reason to doubt its being honored. All my former ones had been duly paid. Nor could you or others produce a single instance, in which my signature had not justified the confidence reposed in it. Secondly, that by sending you the bill before you had sent me the money for it, I gave you an opportunity of keeping the money, and giving my public account credit for it, and that in not taking this advantage you did me a favor.

"After having agreed to purchase this bill, and pay me the money for it, you could have no right to detain it. And surely, Sir, you need not be informed, that there is a wide distinction between acts of common justice and acts of friendship. I remember that there was then but little demand for bills on Paris, and so far as you may have been induced to take this one, from regard to my convenience, I am obliged to you.

"4thly. _That by your agency you accelerated the payment of the twentysix thousand dollars._

"I really believe, Sir, that you did accelerate it, and you would have received my thanks for it, if the unusual and very particular manner, in which the order for that payment was expressed, had not been less consistent with delicacy, than with those improper fears and apprehensions, which the confidence due to my private as well as public character, ought to have excluded from your imagination. All the preceding orders, which had been given on similar occasions, directed the money to be paid to me. But in this instance, as I owed you a considerable balance, care was taken that the twentysix thousand dollars should not, as formerly, be paid to me, but to you on my account.

"5thly. _That you offered to make me further advances, if either the Ambassador of France or the Minister of State would give you a positive order for the purpose, which you say they constantly refused._

"It is true, Sir, that you offered to supply me with money to pay my acceptances for the month of March, provided the Minister of State or the Ambassador of France would engage to see you repaid with interest, within a certain number of months, sometimes saying that you would be content to be repaid within seven months, and at others within ten or twelve months, and you repeated this offer to me in these precise terms on the 11th of March last.

"This offer was friendly. I accepted it with gratitude, and in full confidence that you would punctually perform what you had thus freely promised. I accordingly made this offer known to the Minister, and solicited his consent. On the 15th day of March he authorised the Ambassador of France to inform me, that you might advance me from forty to fifty thousand current dollars on those terms. The Ambassador signified this to me by letter, and that letter was immediately laid before you. Then, Sir, for the first time, did you insist on being repaid in four months, and that in four equal monthly payments, secured by orders on the rents of the post-office, or on the general treasury, &c. &c. These terms and conditions were all new, and never hinted to me in the most distant manner until after the Minister had agreed to your first offer, and until the very moment when the holders of the bills were demanding their money, and insisting that the bills should either be paid or protested.

"The Minister rejected these new conditions, and you refused to abide by the former ones. The bills were then due. I had no time even to look out for other resources, and thereby was reduced to the necessity of protesting them.

"Such conduct, Sir, can have no pretensions to gratitude, and affords a much more proper subject for apology than for approbation. I confess that I was no less surprised than disappointed, and still remain incapable of reconciling these deviations from the rules of fair dealing, with that open and manly temper which you appear to possess, and which I thought would insure good faith to all who relied on your word.

"How far your means might have failed, how far you might have been ill-advised, or ill-informed, or unduly influenced, are questions, which, though not uninteresting to you, are now of little importance to me.

"I acknowledge with pleasure, that until these late singular transactions I had reason to believe you were well attached to the interests of my country, and I present you my thanks for having on several former occasions endeavored to promote it.

"I am, &c. &c.

JOHN JAY."

As M. Cabarrus was concerned in contracts with government for money, and was the projector of several of their ways and means for supplying the Royal Treasury, it appeared to me expedient that he should wish us well, and be our banker. Some advantages have arisen from it, and they would probably have been greater, if not opposed by the great and unfriendly influence of M. Del Campo. At the same time that I blame M. Cabarrus, I cannot but pity him, for there is much reason to consider him in the light of the _scape goat_.

I have now employed Messrs Drouilhet to do our business; that house is one of the most considerable here in the banking way.

I showed Dr Franklin's letter to the Ambassador of France, and made him my acknowledgments for the generous supply afforded by his Court to ours. He seemed very happy on the occasion, and regretted it had not been done a little sooner.

His secretary remarked to me, that Spain would suspect that this subsidy had been granted in consequence of the protest of our bills, and that this Court would make it the cause of complaint against France.

The Court left the Pardo, and passed the Easter holidays at Madrid. I denied myself the honor of waiting on the Minister on that occasion, nor have I seen him since the protest of our bills. My judgment, as well as my feelings, approved of this omission. The Court are now at Aranjues, where I have taken a house, and purpose to go soon after these despatches shall be completed.

On the 30th of March I was surprised by the following note, being the first of the kind which I have received from the Minister since my arrival.

Translation.

"The Count de Florida Blanca has been to take the orders of V. S.[2] for Aranjues, where he hopes to have the honor of the company of V. S. at his table, every Saturday after the 11th of May next ensuing."

This invitation is imputable to the late news from England, and the grant of six millions by France was probably accelerated by it. Both Courts are watching and jealous of us. We are at peace with Spain, and she neither will nor indeed can grant us a present subsidy. Why then should we be anxious for a treaty with her, or make sacrifices to purchase it? We cannot now treat with her on terms of equality, why therefore not postpone it? It would not perhaps be wise to break with her; but delay is in our power, and resentment ought to have no influence.

Time would secure advantages to us, which we should now be obliged to yield. Time is more friendly to young than to old nations, and the day will come when our strength will insure our rights. Justice may hold the balance and decide, but if unarmed will for the most part be treated like a blind woman. There is no doubt that Spain requires more cessions than England, unless extremely humbled, can consent to. France knows and fears this. France is ready for a peace, but not Spain. The King's eyes are fixed on Gibraltar. The Spanish finances indeed are extremely mismanaged, and I may say pillaged. If England should offer us peace on the terms of our treaty with France, the French Court would be very much embarrassed by their alliance with Spain, and as yet we are under no obligations to persist in the war to gratify this Court. It is not certain what England will do, nor ought we to rely on the present promising appearances there; but can it be wise to instruct your Commissioners to speak only as the French Ministers shall give them utterance? Let whatever I write about the French and their Ambassador here be by all means kept secret. Marbois gleans and details every scrap of news. His letters are very minute, and detail names and characters.

Sweden is leaning towards us, and it will not be long before the Dutch become our allies. Under such circumstances, Spain ought not to expect such a price as the Mississippi for acknowledging our independence.

As it is uncertain when I shall again have so good an opportunity of conveying a letter to you as the present, I have been very particular in this. The facts might perhaps have been more methodically arranged, but I thought it best to state them as they arose; and though some of them separately considered do not appear very important, yet when viewed in connexion with others, they will not be found wholly uninteresting.

You will readily perceive on reading this letter, that parts of it relate to Mr Morris's department. I hope he will excuse my not repeating them in a particular letter to him, especially as he will readily believe, that the length of this, and the cyphers used in it, have fatigued me a good deal.

All the cyphers in this letter are those in which I correspond with Mr Morris, and the only ones I have received from him. They were brought by Major Franks and marked No. 1. Several of my former letters to Mr Thompson and you mentioned, that his cypher was not to be depended upon. The copy of it, brought by Mr Barclay, which is the only copy I have received of the original by Major Franks, having passed through the post office, came to my hands with marks of inspection on the cover.

I received, the 12th of April, a packet of newspapers, which I believe was from your office. It was brought to Bilboa by Mr Stockholm; but not a single line or letter from America accompanied it.

On the back of the packet there was this endorsement, "Bilboa, April 3d, 1782, brought and forwarded by your Excellency's very humble servant Andrew Stockholm." Notwithstanding this, it was marked _Paris_ by the post office, and charged with postage accordingly, viz. one hundred and six reals of vellon. I sent the cover to the director of the post office, but he declined correcting the mistake. Thus are all things managed here.

The _Courier de l'Europe_ informs us, that the English Ministry are totally changed, and gives us a list of those who form the new one. I think it difficult to predict how this change may eventually operate with respect to us. I hope we shall persevere vigorously in our military operations, and thereby not only quiet the fears and suspicions of those who apprehend some secret understanding between us and this Ministry, but also regain the possession of those places, which might otherwise counterbalance other demands at a peace.

Great preparations are making here for a serious attack on Gibraltar. The Duc de Crillon will doubtless command it. His good fortune has been very great.

It is natural as well as just, that Congress should be dissatisfied with the conduct of this Court; they certainly have much reason; and yet a distinction may be made between the Ministry and the nation, the latter being more to be pitied than blamed.

I must now resume a subject, which I did not expect to have had occasion to renew in this letter.

You may observe from the copy of the Count de Florida Blanca's note, containing an invitation to his table at Aranjues, and left at my house by his servant, that it was not expressly directed to me. This omission raised some doubt in my mind of its being intended for me, but on inquiry I found that the other Ministers had in the same manner received similar ones, and not directed to them by name. I mentioned my having received it to the Ambassador of France. He told me the Count had not mentioned a syllable of it to him. I desired him to take an opportunity of discovering from the Count, whether or no there was any mistake in the case, and to inform me of the result, which he promised to do.

On the 23d of April instant, the Ambassador being then in town, I paid him a visit. He told me, that on mentioning the matter to the Count, he said it must have happened by mistake, for that he intended only to ask my orders for Aranjues, but that he was nevertheless glad the mistake had happened, as it would give him an opportunity, by mentioning it to the King, to obtain his permission for the purpose, and to that end desired the Ambassador to write him a note stating the fact. The Ambassador did so, and the Count afterwards informed him, that he had communicated it to the King, who, with many expressions of regard for our country, had permitted him to invite me as a private gentleman of distinction belonging to it. He authorised the Ambassador to communicate this invitation to me, and also to inform me, that I might bring Mr Carmichael with me.

Much conversation ensued between the Ambassador and myself, consisting of my objections to accepting this invitation, and his answers to them. But as we continued to differ in sentiment, and he was going out, I agreed to think further of the matter before I gave my final answer.

For my part I doubt there having been any mistake. I think it more probable, that the Minister, afterwards reflecting on the use that might be made of this note, wished to render it harmless by imputing it to mistake, and substituting a more cautious invitation. For it can hardly be supposed, either that his servant would, for the first time in two years, leave such a note at my house unless ordered; or that he himself would for the first time in his life, and that in writing, inform me of his having called to take my orders for Aranjues, without taking care that his amanuensis wrote as he dictated. He was probably warmed by the news from England and Holland, and, in the perturbation of spirits occasioned by it, was more civil than on cool reflection he thought was expedient, especially on further considering, that the Ambassador might not be well pleased at not having been privy to it.

A few days afterwards I wrote the Ambassador the following letter on the subject.

"Madrid, April 27th, 1782.

"Sir,

"Be pleased to accept my thanks for the very friendly part you have acted relative to the Minister's written invitation left at my house, and the verbal one since conveyed from him to me by your Excellency. I have deliberately re-examined my former sentiments respecting the propriety of accepting it; and as they remain unaltered, my respect for your judgment leads me to refer them, fully explained, to your further consideration.

"As the Minister informed your Excellency, that the written invitation was left at my house by _mistake_, I think nothing remains to be said relative to it. On the discovery of that mistake, the Minister it seems was so obliging as to apply for, and obtain the consent of the King to renew the invitation, not in _general terms_, but in terms expressly declaring, that it was given to me as a private gentleman, and was so to be accepted; with the additional favor, nevertheless, of being permitted to bring Mr Carmichael with me.

"The only objection, which opposes my accepting it, arises from this question, viz. whether a Minister or representative of an independent sovereign can with propriety accept any invitation, which in the terms of it impeaches his title to that character? So far as this question respects the Ministers of independent states and kingdoms in general, your Excellency will agree with me in opinion that it must be answered in the negative. The next inquiry which presents itself is, whether the United States of America come so far under that description as to render this reasoning applicable to their Ministers? Every American thinks they do. Whatever doubts this, or other Courts may entertain relative to their independence, the United States entertain none, and therefore their servants ought not, by words or actions, to admit any. For instance, ought General Washington to accept an invitation, which expressly imposed upon him the condition of laying aside his uniform, and appearing at table in the dress of a private gentleman? I think not. If this reasoning be just, the impropriety of my accepting this invitation becomes manifest, and all arguments from the expediency of it must cease to operate. For my part I consider it as a general rule, that although particular circumstances may sometimes render it expedient for a nation to make great sacrifices to the attainment of national objects, yet it can in no case be expedient for them to impair their honor, their dignity, or their independence.

"As to the temporary advantages, which might result from accepting this invitation, I find them balanced by at least equal disadvantages. There can be no doubt on the one hand, but that my frequenting the Count de Florida Blanca's table on the days appointed for entertaining the foreign Ministers would impress a general opinion, that Spain was about to become our allies, and I readily admit, that such an opinion might operate to our advantage in other countries. But on the other hand, when the Count de Florida Blanca, in order (though perhaps in vain) to save appearances, shall inform those foreign Ministers, that I was expressly invited as a private gentleman, and had consented to come in that character, they would naturally entertain ideas, which would tend to diminish rather than increase their respect for America and American legations.

"It would give me pain if the Count de Florida Blanca should suppose me to be in the least influenced by the promising aspect of our affairs. I flatter myself he will not incline to that opinion, when he reflects on the particular circumstances under which the United States declared themselves independent, and under which they afterwards refused to treat with their then victorious enemies, on any terms inconsistent with it.

"Although offence and disrespect are very far from my thoughts, I fear the Count will be a little hurt at my declining the invitation in question. I am persuaded that he meant to do me a favor, and I feel myself indebted for his friendly intentions. But as the considerations mentioned in this letter forbid me to accept it, I wish to communicate that circumstance to him in the most soft and delicate manner, and, therefore, request the favor of your Excellency to undertake it.

"I have the honor to be, &c.

JOHN JAY."

Reasons similar to those assigned for this refusal have induced me ever since my arrival to decline going to Court, where I might also have been presented as a stranger of distinction, but as Mr Carmichael had been presented in that character previous to my coming to Madrid, I never objected to his making subsequent visits.

I am, Dear Sir, with great regard and esteem, your most obedient and very humble servant,

JOHN JAY.

FOOTNOTES:

[2] Vuestra Senoria. _Your Lordship_, or _Your Excellency_. We have no title, which exactly corresponds with the Spanish.

* * * * *

ROBERT R. LIVINGSTON TO JOHN JAY.

Philadelphia, May 9th, 1782.

Dear Sir,