Chapter IV: Front Matter (4)

The last post from France brought the news of M. Necker's removal from the Ministry. This change would have been agreeable to this Court some months ago, on account of the interference of that Minister in the operation of the loan mentioned in former letters. At present, it seems to be regarded in a disagreeable point of view, as M. Necker had engaged to furnish monthly, considerable sums to persons employed to procure money for this Court, on condition of being reimbursed in specie in Spanish America, and on other terms that would have been advantageous to the lenders. Part of the specie thus procured, was intended for the payment of the French troops in North America, and, as I have been told, for the immediate service of Congress, as part of the sum the Court of France has lately engaged to furnish to the United States.

I have been told, that M. Necker was not disposed to make large advances to Congress, and, as a proof of this, it has been mentioned to me, that he opposed the King's guarantee of a loan, which Dr Franklin endeavored to negotiate last year at Genoa. He is said to have been obstinately attached to his own opinions, and of a haughtiness in supporting them, which the man who placed him could ill brook. He felt an opposition that he could not bear, and which, perhaps, he saw he must sink under, and, therefore, asked his dismission, which was granted him. He is regretted as a public loss. It would be presumption in me, to enter into a more minute detail on this subject, as your correspondents on the spot will certainly give the Committee much ampler information than it is in my power to do.

Since my letter of the ---- ult. I have had an opportunity of knowing, through the same channel of intelligence mentioned in former letters, that the Court of Vienna still persists in its good offices, to bring about conferences for a general peace. Without being able to mention particulars, I can assure the Committee, that in the middle of April, the Baron de Breteuil, Ambassador of France, at the abovementioned Court, insisted for the admission of an American Plenipotentiary at the proposed Congress. The Prince de Kaunitz lamented this proposition, as an obstacle that might impede a business, which the Emperor had much at heart. I have not been able to trace the demands of Spain, but I believe their pretensions in general, do not appear reasonable to the Imperial Court.

We have had no news of the fleet since I had last the honor of writing to you. There is reason to think, by news received from England, that Darby had orders to return to that country. The expedition mentioned in former letters, will be ready for action in the month of July. The choice of officers to command it is not yet public. The negotiation is in the same situation.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

JAMES LOVELL TO WILLIAM CARMICHAEL.

Philadelphia, June 15th, 1781.

Sir,

Your several letters have been read in Congress; and your industrious care, to give frequent, early, and general information of those things in Europe, which may have influence upon our national affairs, has been not only highly pleasing in itself, but has acquired value lately, from the loss of all packets from Mr Adams, since his date of October 24th.

I am, Sir, your friend and humble servant,

JAMES LOVELL.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, August 16th, 1781.

Gentlemen,

Since my last, of the 15th ult. in which I enclosed the Committee a list of the combined fleet assembled at Cadiz, and of the troops to be embarked under the command of the Duc de Crillon, we have advices of the sailing of this fleet, and that the troops of the expedition passed the Straits of Gibraltar the 23d ult. They had, however, been detained by contrary winds, and had not left the neighborhood of Carthagena the 7th instant. The Court expects soon to hear of their landing in the Island of Minorca. It is the general opinion, that the force employed is not sufficient to take Port Mahon. The character of the General, who I have the honor to know intimately, does not accord with this idea. The combined fleet by the last advices was cruising off Cape Spartel. That of England, commanded by Darby, is at sea, to the number of twentythree or twentyfive sail. The Dutch fleet sailed on the 23d ult. and consists of seventeen sail in the whole, it is said to be destined to the northern seas, where England has a squadron inferior in number of vessels, under the command of Sir Hyde Parker.

Our negotiation seems to be in a better train, and it is not improbable, that Mr Jay will be able to terminate our affairs with Spain previous to the general negotiation, which is much talked of at present among the _corps diplomatique_ here. The number of couriers who pass and repass between the Courts of Versailles, this, and those of Vienna and Petersburg gives occasion to those conjectures. Mr Adams has been lately sent for by the Count de Vergennes, and, as I am informed, has had conferences with that Minister. If this should be the case, the Committee will have from the first authority, more ample details on this subject, than can be learnt from second and third hands.

The United Provinces of Holland, &c. appear much divided, and seem more employed in party quarrels and private interests, than in pursuit of measures for the public advantage and honor. I fear the republican party lost ground by their late attack against the Duke of Brunswick. This Court continue to borrow money, and have just concluded a loan for three millions of dollars, to be refunded in the Havana and Vera Cruz, one million in the present year, and two in 1782. They have other loans in contemplation, of the general nature of which, I hope to be able to inform the Committee in time, although it may be difficult to obtain the minute particulars and conditions of these loans. The French Minister is concerned in the last mentioned, and will receive part, at least, of the three millions in question, which I hope will ultimately centre in North America.

Mr Jay continues to accept the bills drawn on him; between twenty and thirty thousand dollars have been accepted, for which, as yet, no funds are provided, but I hope we have not much to fear for their payment. I have rendered Mr Jay accounts of all our money transactions here, which, with his usual regularity, he will transmit to Congress, as also minute details of his other transactions here. Among the bills presented, it may not be improper to mention, that several have been endorsed by people in America, payable to merchants in Great Britain and Ireland. If this does not accord with the ideas of Congress, the treasury will be instructed to convey to Mr Jay further directions on this subject.

Although much is said of the forwardness of the negotiations ---- peace, it is not probable that the preliminaries to be fixed on previous to the opening of the conferences can be adjusted, until the fate of the campaign is known, particularly if this Court acts with its usual deliberation, which some call dilatoriness. If the expedition against Minorca succeeds, and if money can be procured for the operations of the war, it is the opinion of some persons who are well informed, that the general peace will meet with more obstacles here than elsewhere. I have already written to the Committee, that the Court of Vienna found the pretensions of this Court extravagant. Its great objects of the war, are the possession of the entire navigation of the Gulf of Mexico, and Gibraltar. These are said to be the King's objects, who is in a good state of health, and follows with the same ardor his daily occupation of the chase. There is no talk of a change of Ministry. The fleet from Buenos Ayres, mentioned in former letters, is arrived, and I am afraid M. Solano will be more attentive to the safe arrival of that from the Havana, than to the prosecution of the plan of operations formed with our ally. The affairs of Great Britain in the east, are in a bad situation, and in consequence thereof India stock has fallen eight per cent.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

St Ildefonso, September 28th, 1781.

Gentlemen,

Since my letter of the 14th instant,[10] the Minister has notified to Mr Jay the King's intentions of naming a person to treat with him; there is reason to think his nomination and instructions will have his Majesty's approbation on Sunday next, though possibly it may not be formally communicated until the Court is at the Escurial, to which place the royal family goes the 10th of next month.

M. Del Campo, whom I mentioned in my last, is the person who probably will be chosen. I repeat his name lest that letter should miscarry; he is First Under Secretary of Foreign Affairs, and acting Secretary of the Council of State; and has the reputation of possessing great abilities and application to business, and I believe he merits what is said of him. He has also the entire confidence of the Count de Florida Blanca; his residence in England as Secretary of the embassy there, and his attention to Mr Cumberland and family while here, occasioned some to believe him secretly inclined to the interests of that country, but I believe without foundation, for I know that Mr Cumberland left this country much chagrined, and I believe he was the dupe of this gentleman's policy. I have had the satisfaction of being on very good terms with him for several months past, and have often expressed to him my hopes and wishes, that he might prove another M. Gerard in our affairs. His being employed in this negotiation is so far favorable to us as its successful issue interests his own reputation, and will be probably a step to further honors and employments, to which, as mentioned in my last, the public opinion destines him. I hope the Court is now serious in its intentions to conclude the negotiations, but it is still not improbable this business may be delayed until the fate of the campaign is known, unless it should be accelerated by the confirmation of news received from Cadiz last week, of the arrival of the Count de Grasse's squadron on the coast of Virginia, the consequent critical situation of the army of Lord Cornwallis, and the defeat of Lord Rawdon by General Greene.

I shall seize every opportunity of informing the Committee of the progress made in this important business, and am happy to find by a letter I have just had the honor to receive from Mr Lovell, dated the 15th of June, that my correspondence has contributed in any degree to the satisfaction of Congress, but am surprised, that so few of my letters have reached the Committee, for on reading the list of those received and comparing it with my letter book, I find several missing, which were sent by vessels from Bilboa and elsewhere, which I know arrived in safety to America, particularly my answer to Mr Jay's instructions to me at Cadiz, of which he sent only the state of the revenues and expenses of this country in the year 1778.

I am informed by letters from Holland, that Mr Adams has had a nervous fever, but that he is now in a fair way to recover. The South Carolina frigate sailed from thence with the ships under her convoy, the 19th ultimo. I hope their safe arrival will convey to Congress ample information of the situation of their affairs in that quarter; I am afraid the loan does not fill fast, because I have letters from a house at Hamburg which mention, that Congress bills to a large amount, that they had presented for acceptance, had been protested. The republican party gains ground, and the Duke of Brunswick, though not removed, is obliged to act with more caution, and the Stadtholder with more resolution and force. I am informed, that the Court of France has consented to replace the cargo lost in the Marquis de Lafayette, but Dr Franklin is not enabled to accept any more of Mr Jay's bills, even for our salaries.

The rumors of a general negotiation subside, owing it is said to the obstinacy of Great Britain, and the demands of this Court. The Imperial Minister has just received a courier from his Court, charged with its excuses for the detention of a Spanish courier, who after delivering his despatches to the Spanish Ambassador at Vienna, on his journey from thence to Petersburg, was stopped in Hungary, and not permitted to proceed until released by order of the Imperial Court. The Imperial Minister named to the Court of Berlin from hence, will soon go thither; his nomination is still a secret. The Spanish squadron has returned to Cadiz. Major Franks will leave this next week. I must do this officer the justice to observe to the Committee, that he has conducted himself with great discretion and economy here, and I hope that Congress will be induced by the success and expedition with which he delivered their despatches to Mr Jay, to send in future such as are important in a similar way.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[10] Missing.

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TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, October 5th, 1781.

Gentlemen,

On my arrival here from St Ildefonso this day, I found the enclosed letters for his Excellency, the President of Congress, from M. Dumas. On the 14th and 28th ult. I wrote to the Committee, that the Court appeared more serious in its intentions of bringing on the negotiation than it had shown itself to be for a long time. In my last, I informed the Committee that M. Del Campo would, probably, be appointed to negotiate with Mr Jay, and that his instructions and nomination would have his Majesty's approbation on the night of the 30th ult. The Minister of State once proposed to intrust M. Gardoqui with this business. Yesterday, when I left the _Sitio_, the Court had not formally notified the appointment to Mr Jay, but from some hints I received from well informed persons, I have hopes that the communication will be made either before he comes from thence tomorrow, or directly after the Court is fixed at the Escurial. I shall, however, be very agreeably disappointed, if much progress is made in this affair until the fate of the campaign is known.

The last post from France and Holland brought no news of an interesting nature. The French and Spanish troops, destined to reinforce the Duc de Crillon's army at Minorca, are not yet embarked, and he cannot act with effect until he receives reinforcements. It is said the desertion from the place is considerable. The South Carolina frigate, armed for that State in Holland, has put into Corunna, and I am concerned to find by letters from Messrs Searle and Trumbull, passengers on board, that Commodore Gillon's conduct is much censured. Knowing Mr Searle's zeal and solicitude for the public interest, I must own that his letter has influenced my opinion in a great degree, but it would be unjust to condemn the former, before having seen an exposition of the reasons, which have determined his conduct, and which he has promised to forward to Mr Jay by express.

The fact is, he sailed from the Texel without the ships he had engaged to escort, that he has cruised six or seven weeks with little success, and that he has been obliged to put into the port abovementioned, to refit and get a supply of provisions, which he writes he shall do immediately. It is probable Mr Jay may think proper to send me to Corunna in this business, which commission, I must confess, I shall accept with reluctance, because I not only foresee the delay and expense that must inevitably have place, if this government is obliged to interfere, but the disgrace, which must ensue from the notoriety of these unhappy differences between the commander and the American gentlemen aboard. I have another motive, which arises from the nature of the employment with which Congress has honored me, and which, with submission, I conceive does not admit of my absence at the most important period of the negotiation, when most knowledge is to be acquired of the real dispositions and intentions of this Court, and when I may avail myself of the esteem and confidence with which the proposed negotiator has appeared to honor me for several months past. Although, for the reasons abovementioned, and for others which I could add, I may leave the Court at this crisis with reluctance, I shall, if directed, proceed to Corunna, and execute the trust reposed in me, with a zeal, assiduity, and activity, which, I hope, will always influence my conduct, when the public interest and reputation are in question.

I enclose a letter for his Excellency, the Chevalier de la Luzerne from the Count de Montmorin, whose talents and warm espousal of our interests, not only here, but at his own Court, entitle him to the approbation and esteem of Congress. I just hear that the Court has received advices from Buenos Ayres, dated the 7th of July. These are very agreeable. The rebellion mentioned in my former letters is entirely quelled, by the defeat and capture of the Indian chief at the head of it, and his principal officers, cannon, treasure, &c. &c. It seems two English officers are in the number of the prisoners, and that many letters and papers were found, which discover that the Portuguese excited and fomented these disturbances.[11]

The Havana fleet is expected daily. On its arrival, perhaps, the Court may do something for us. But I repeat again, that little is to be depended on in the money way. Letters from France talk of a large expedition preparing at Brest. Its object is a secret. I shall seize every opportunity of informing the Committee of what passes in Europe relative to our affairs, and, in future, will multiply the copies of my letters to ensure their safe arrival.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[11] This alludes to the revolt of the celebrated Peruvian Chief, Tupac Amaru, of which an eloquent account is given by Dean Funes, in his _Ensayo de la Historia Civil del Paraguay, Buenos Ayres y Tucuman_. See North American Review, Vol. XX. p. 283.

* * * * *

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 17th, 1781.

Gentlemen,

On the 2d instant the pretended Ex-Jesuit, who made so much noise in the English papers last winter and spring, was arrested at the Escurial, where he arrived the day before from Lisbon, under an assumed name. Commodore Johnson sent him to Rio Janeiro, in order to pass from thence to the Spanish settlements in Peru. He pretended to the Portuguese Governor, that he had been taken by Johnson on his way to the Caracas, but the former from some suspicion arising from the man's appearance and story, refused him permission to pass into the country, which obliged him to embark for Lisbon, at which place under his borrowed name he addressed Don Ferdinand Nunes, the Spanish Ambassador, offering to make some important discoveries to the Count de Florida Blanca. The former advised the Minister of these offers, and was directed by him to furnish the person in question with cash for his journey. It is said, that he was recognized the very day of his arrival at the Escurial, by one who knew him at Buenos Ayres. It is more probable, that M. Nunes knew his real character previous to his departure from Lisbon, for the magistrate whom the Minister of the Indies employs on such occasions, went to the Escurial with his officers, the day he arrived there, and arrested him the same evening. He is now in close prison, and I am told has discovered all he knew relative to the designs of the English, to foment the spirit of revolt existing in that country. This affair furnished conversation to the Court the few days I resided at the Escurial, whither I went, at the instance of the French Ambassador, to Mr Jay to be present at the _Besa Manos_, on St Carlos's day.

I found by conversation with M. Del Campo, First Under Secretary of Foreign Affairs, that nothing had been done by the Court to advance the conferences for a treaty since it left St Ildefonso. In my letter of the 5th of October, I mentioned, that the gentleman abovenamed was nominated by the King to treat with Mr Jay; this nomination has never been formally communicated, but I had my information from such a quarter, that I am convinced the appointment was made, and the instructions given near about the time mentioned in my letter. Multiplicity of business, and the confusion occasioned by the Court's removal from one royal residence to another, are the present pretexts for this delay. The aspect of our affairs at the close of the campaign, the fate of which is yet unknown, and the apprehension of being obliged to make large advances in consequence of cementing their connexion with the States, are perhaps the real causes; to which may be added others of a different nature, though not less important to Ministers and courtiers.

The palace is filled with Irish attendants, of both sexes, whose animosity to us and our cause is as decided and inveterate as is their attachment to it in America. The Princess of Asturias has on several occasions, and lately in particular, treated such English as come here with much condescension and distinction. The last instance I allude to happened to lady Winchelson, and the Lord her son, who came from America, (where he commanded a regiment) to Lisbon for his health. They were accompanied by a Mr Graham and his lady, and sister, both sisters of Lady Stormont, and visited the Escurial in their way to France.

If the Ministers perceive any aversion in their future King and Queen to an alliance with us, they can easily find pretexts to retard it until they see their own justification in the urgency of the conjuncture, that may appear to have forced them into the measure. This however is but conjecture founded on the knowledge of some little incidents in the interior of the palace, and strengthened by the conduct of the Ministry, not only in the great object of Mr Jay's mission, but also in several minute particulars in which they might act to our satisfaction, without showing any marked partiality in our favor. So far from Mr Jay's having been yet able to obtain further succors, the French Ambassador has not procured the payment of moneys advanced in the month of May, by the Marquis de Yranda, to enable Mr Jay to discharge the bills due that month, although the Minister engaged his word to the Ambassador to repay this sum in equal monthly payments. In fact the Court itself is distressed, and with difficulty finds means to answer its own engagements.

I believe I may venture to write with some certainty on this subject, for I have been on an intimate footing with the person who has transacted for the Court the most part of its money negotiations for more than twelve months past. I knew and cultivated him before he was in favor, and my introduction of him to Mr Jay, procured him the commission on the payment of our bills, and a considerable credit in consequence of the sums supposed to pass through his hands monthly for this purpose. As he has been the founder of the paper system in this country, and as he is likely soon to establish a national bank, he will probably make some figure in the annals of this reign. His name is Francis Cabarrus, born in Bayonne, but sent early to Spain to acquire a knowledge in its commerce, in which his father was considerably interested. His marriage at the age of nineteen (he is now twentynine) displeased his family, from whom after that period he received no assistance. With a small capital, as he himself informed me, he came and established a soap-work in the neighborhood of this city. While there he introduced himself to the notice of the Count de Campomanes, by becoming a member of the patriotic society, the friends of their country; of which the last mentioned gentleman is in a great measure the founder. He soon conciliated his esteem, as well as that of the Governor of the Council of Castile, to whom he became known by means of his friend and patron M. Campomanes. Through their interest he procured a contract to supply wheat and flour, in a time of scarcity, and commenced banker. The last year he proposed his plan for procuring cash for government, on terms mentioned in former letters. His genius is brilliant, active, and enterprising, with more imagination than solidity, although he is by no means deficient in acquired knowledge, arising from reading and reflection, the result of experience. His eloquence, enforced by a very prepossessing countenance and figure, seizes the heart before it convinces the judgment, and this joined to his knowledge of commercial and money transactions, has obtained for him the confidence of M. Musquiz, who consults him at present in all affairs of finance.

I have thought proper to say thus much of this gentleman, not only on account of the part he has had, and is like to have in money matters, but because he has on all occasions manifested himself a friend to our cause, of which he is an enthusiastic advocate, being totally divested of local prejudices. He offered to procure five hundred thousand dollars for the States, payable at Havana on condition of being reimbursed by government in two years, the payments to commence at the expiration of two months after his orders for the delivery of the money to the agents of Congress were despatched. He will make the advances for the payment of the bills due next month, which amount to thirtytwo thousand dollars, and for the reimbursement of which Mr Jay relies on Dr Franklin, for after the delays we have experienced here, and the knowledge of their own distresses, there is no great reason to think this Court will grant us any considerable pecuniary assistance, unless a happy change in the situation of our affairs should precipitate a treaty, and lead them to extraordinary exertions, as proofs of their amity. The support of their fleet at Cadiz, of forty sail of the line, the sieges of Gibraltar and Mahon; their expensive armaments at the Havana, and the preparations making for an expedition from Europe to that quarter, which will sail next month, exhaust their European and American revenue, and all the resources by which they have hitherto obtained money.

The insurrections in Peru augment this expense, and the same spirit of revolt, which seems to have extended to Mexico, will add to it. These discontents have been occasioned by duties imposed since the administration of M. Galvez, the present Minister of the Indies. The project was proposed by Carrasco, Marquis de la Corona, to the Marquis of Squillace then Minister, who was much inclined to adopt it, and named the projector to visit Spanish America, in order to form on the spot the plan of its execution. He declined the mission on various pretexts, and another was appointed for this purpose, who died on his passage. M. Galvez, the present Minister of the Indies, succeeded him, and on his return to Spain made a report so agreeable to his Majesty, that it procured him the important post he now occupies.

The novelty of these measures, joined to the vexations and impositions occasioned, as is said, by the collectors of them, has created much dissatisfaction in these countries. I have my information from some of the principal natives of Mexico and Peru here, and also from a foreigner, who obtained permission to visit Mexico, and who made the voyage from motives of curiosity. Four thousand troops are to be embarked at Cadiz for the expedition abovementioned, and it is said will be escorted by four vessels of the line, who at the same time convoy the register ships bound to the Havana and Vera Cruz. As this convoy will sail about the same time that the expedition from Brest will be ready for sea, it is probable they may form a junction. Ten thousand troops are to be employed in the one last mentioned, and I am told will sail escorted by twenty sail of the line. Part of which will probably join the grand fleet at Cadiz, and the rest proceed to the West Indies, where I have reason to think they will act in concert with the Spaniards. A friend of mine is to embark on board the French fleet as interpreter. He speaks and writes the Spanish language perfectly.

I have also some reason to believe that the French naval force, and a larger body of troops than they have yet sent to America, will appear on our coasts earlier the next, than they did the present year. Jamaica is thought to be the first object of these expeditions, and this conjecture arises from the appointment of M. Galvez to the command of the Spanish force in the West Indies, whose project for attacking that Island is well known. In France, it is said that a part of the troops to be embarked at Brest, is intended for the East Indies; and here, that theirs are sent to suppress the revolt at Santa Fé, mentioned in my letter of the 17th ult.[12] I rather think that two French ships of the line, now at Cadiz, and as many frigates, who have taken and are taking in provisions for a long voyage, are destined to the eastern part of the world, and that they will take with them a considerable sum in dollars, for the payment of their land and sea forces there. The French Ambassador has obtained, or is about to obtain, permission to send out of the kingdom two and a half million of dollars, part of which sum is probably destined to the purpose above mentioned.

The sieges of Gibraltar and Mahon go on slowly. The operations against these fortresses have not been so vigorous hitherto as to promise a speedy reduction of either; when the efforts of these besiegers become more interesting, I shall transmit regular accounts of their progress. The Court of Great Britain proposes to send five hundred troops to America, exclusive of recruits, to be drawn from Germany and Ireland. These it is said, will sail with thirteen sail of the line in the course of next month. The East India Company also send a reinforcement of seven thousand men to the East Indies, with four sail of the line. If this information can be credited, the East and West India, and American reinforcements will sail at the same time, to insure by their united force their safety on the coast of Europe.

In Holland the divisions are still great, and likely to be so. The Provinces have not yet all agreed to the loan proposed by France for the use of Congress. I am informed the Stadtholder's friends give it all the opposition in their power. That Prince has, as I have already advised the Committee, been obliged to consent to the augmentation of the marine. The news of the birth of the Dauphin will probably reach America before this letter. It is expected it will be received there with demonstrations of satisfaction that will be highly flattering to the French nation. The great age and infirmities of the Count de Maurepas, render it probable that he will not survive the winter. The Queen's influence, it is thought, will increase by the birth of the Dauphin, and the death of this Minister. Permit me to conclude with the flattering hopes of a brilliant close of the campaign, which the well concerted plan of our General and allies communicated to me by the Count de Montmorin, renders highly probable. The success of this operation, and what is expected, may perhaps render Mr Jay's next information more agreeable and interesting to Congress, to whom I beg leave to present my humble respects.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

FOOTNOTES:

[12] Missing.

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ROBERT R. LIVINGSTON TO WILLIAM CARMICHAEL.

Philadelphia, December 20th, 1781.

Dear Sir,

Your letters of the 16th of August, and 5th of October, came to hand. They were read in Congress, and handed over to this office, which will in future, agreeably to its institution, receive and make all communications to and from Congress, conformable to their ordinance, of which I enclose a copy, having omitted it in my letters to Mr Jay. The importance of early and regular intelligence from Europe is so much felt here, that you have full credit for all the communications you make. I wish you would extend them so far as to permit no vessel to sail without letters and papers. Spanish gazettes may sometimes be serviceable to us.

The expedition of the Duc de Crillon is important in many views; should it succeed, it will be such a blow to the British as must hasten a negotiation, though it may probably obstruct a peace; at any rate, the possession of the Island must cut the sinews of their Mediterranean trade. Your apprehensions about being sent to Corunna, will, I hope, have been groundless, as Captain Gillon's ship is not the property of, or under the direction of the United States. So far as Mr Jay's good offices can be serviceable, they undoubtedly will be extended. He will not think himself obliged to involve the United States in the expense or disgrace of Captain Gillon's misconduct, if, as is alleged, he has really behaved improperly. Should he determine to interfere, Congress make no doubt but you will conform to his intentions; and they rely upon your zeal and activity in the discharge of such trusts, as he may think proper, since he alone can judge of the best application of them, and will not deprive himself of the advantages, which your assistance and information may afford, without being determined by weighty and important considerations.

It gives great pleasure here, to hear of the step that Spain is taking, for opening a treaty with us. The delays in that business begin to be resented by the people of this country, the more forcibly, as they felt a high degree of respect for the Court, and much attachment to the people of Spain, in return for the good offices that they had done them. The great cause of the delay being now (as we hear) removed, I doubt not that the candor of the negotiators, and the clear views that they both have of the interest, which Spain and America may mutually derive from an intimate union, will remove all other difficulties to the wished for connexion.

We have no other news on this side the water, than that the enemy have evacuated Wilmington. You, who know the spirit of disaffection which prevailed in some parts of North Carolina, and the commerce which it is capable of carrying on, particularly at this time, in articles for the supply of the West India markets, will see the important sacrifice the enemy have been obliged to make in thus quitting this post, and abandoning the only friends in America, upon whose fidelity and attachment they could rely.

I need not repeat to you, that I shall at all times think myself happy in hearing from you, independent of the advantage that the public may derive from your letters. They will be particularly agreeable to me, as they may be made the means of increasing the number of friends, which your zeal and attention has already procured you.

I am, Sir, with great esteem, &c.

ROBERT R. LIVINGSTON.

* * * * *

TO ROBERT R. LIVINGSTON.

Madrid, December 20th, 1781.

Sir,

Since my letter of the 17th ult. to the Committee of Foreign Affairs, I have had the pleasure to hear of your appointment to the office of Secretary for that department, and although I have not any official directions, respecting my future correspondence, in consequence of this change, I take the liberty of addressing you as I have hitherto done the Committee, on the subject of our affairs here, their situation, and that of the powers with whom we have, or may hereafter have, connexions. At the same time permit me to entreat you, Sir, to inform me, whether it is judged necessary, that I should continue this correspondence, having done it hitherto with a view to multiply the channels of information to Congress, and not from an expectation of conveying any material intelligence, which they will not ultimately receive in a fuller manner from Mr Jay and their other Ministers; to the former of whom I communicate instantly every information I can procure here, or by my foreign correspondence. I have been induced to continue this correspondence, from another motive, which is, that I find that others employed as secretaries here, are directed by their respective Courts, to write either to the Minister for Foreign Affairs, or the particular Secretary of their Sovereigns. The only letter, which I have had the honor to receive from Mr Lovell, since I have been in this country, approved of my endeavors to communicate early and regular information; but if it is expected I should do it effectually, I hope a cypher will be sent me, by the first safe conveyance, under cover to Mr Harrison at Cadiz, or to our Consul in France, with directions to those gentlemen to forward the letter enclosing it, by a sure hand, to escape the inspection of the post-offices in France and Spain, the dread of which often retards my letters, which I am now obliged to send to the sea-ports, by private persons, or the couriers of the French Ambassador. Once possessed of a cypher, I flatter myself that few vessels will sail from France or this country without letters from me, which, although often not interesting, may yet in some degree contribute to the satisfaction of Congress.

Our affairs are in much the same situation they were when I had the honor to forward the above mentioned letter to the Committee. M. Del Campo's sickness, from which he is but just recovered, is the occasion or pretext for this delay. His appointment, however, has been finally announced to Mr Jay by the Minister, and was made at the time mentioned in my former letters. It is probable that little will be done in this business, until the Court goes to the Pardo the 7th of next month. A principle of delicacy perhaps prevents it from seeming at present to precipitate its conduct, in consequence of the favorable aspect of our affairs, since the news of the capture of Lord Cornwallis, and the victory obtained by General Greene in South Carolina. But the delay attending the transaction of the smallest affair in this country, is a sufficient reason to account for the difficulties Mr Jay encounters at present, without surmising other motives. On this subject, I speak from the experience of almost all the _corps diplomatique_, as well as from the authority of individuals, who have much business with the various branches of administration.

The news above mentioned, was received apparently with great pleasure by the King and Prince of Asturias, as I was informed the same day by several of their officers in waiting. The public at large was highly satisfied, and has spoken more favorably since of our allies, than it has done from the commencement of the war. The foreign Ministers were not all so well pleased with this event, particularly those of Germany, Russia and Denmark. However, in general they regard it as a blow which decides the Independence of the States. The new Minister of Sweden is open in declaring his partiality for our cause, and signified that he would have waited on Mr Jay on his arrival here, as it is the custom of those last come to do, if no other Minister had arrived here since Mr Jay's residence, who had not done it. His conduct to myself shows that this was not a mere compliment, for he has invited me several times to dine with him, and visited me. He is a particular friend, I believe, of M. Marbois, for he speaks highly of him, as indeed all do, whom I have conversed with, that have the pleasure of his acquaintance.

The Imperial and Swedish Ministers declare that their respective Sovereigns will reclaim all vessels under their colors, going to or returning from America, which comply with the articles of the armed neutrality, and it has been hinted to me, that it was not difficult to obtain letters of naturalization for the crews of American vessels, provided the nominal officers are subjects of either country. The Court has at length consented to repay the money advanced in April last by the Marquis de Yranda, but has not enabled Mr Jay to pay the bills due this month, and as Dr Franklin has not authorised him to draw, M. Cabarrus, as I expected in my last, has consented to advance the sum sufficient for this purpose, amounting to thirtytwo thousand dollars. Perhaps Dr Franklin may soon enable Mr Jay to repay him.

Thirty thousand pounds sterling would pay all our debts here, which distress us more than the apprehension of not receiving our salaries, of which, though liberal, we have constant need, owing to the dearness of everything in this country, and the great expense incurred by the frequent change of residence of the Court, which circumstance obliges us to take lodgings at the royal residences; and which expense, the frequent journeys that we were constrained to make on account of our other business in Madrid, greatly augment. I should not touch on this subject, if Dr Franklin had not desired me to mention to Congress our personal difficulties and distresses, for I believe, with all the desire he has to serve us, he procures with difficulty sufficient funds for the payment of our salaries.

The expeditions mentioned in my former letters, are now both probably at sea; that from France sailed the 10th instant, and I know of a certainty, that orders have been sent to Cadiz to hasten the departure of the ships and troops at that post. The French ships there, mentioned in my last, take on board a million of dollars, and M. de Bussy, who formerly signalized himself in the East Indies, has gone thither incognito by land, accompanied by several officers, who have but lately returned from the East. It is therefore highly probable, that these vessels, joined by others, go thither, and will take under their escort a part of the troops embarked at Brest.

No great progress is made in the sieges of Gibraltar and Mahon; on the 27th ult., the enemy made a sally from the former place, in which they did more damage, than has been published here, having completely ruined the advanced works of the besiegers, the repair of which will require some time and much money. At Mahon, the rainy season has retarded the operation of the assailants. I am just told the Duc de Crillon demands a reinforcement of two thousand men, which will be granted to him. The enemy receives small succors from time to time by sea. The Court is about to negotiate another loan, in which if it does not succeed, perhaps it must have recourse to another emission of paper. The treasury is at a low ebb. The Minister of Marine demanded lately ten millions of reals, and received but three. The credit of the paper has lately risen, it is not negotiated at one and a half per cent loss.

A plan for a national bank, is at present before the Council. The projector, M. Cabarrus, proposes to form a capital of fifteen millions of dollars, of which he offers to procure six millions; each action to amount to two thousand reals, for which the proprietors receive a certain interest of four per cent, with the profits expected from this establishment; I have seen the plan, but had not permission to copy it, so that I can give but a faint sketch of it. Eight directors are to be chosen the first year, and six annually, by the assembly of the proprietors; two of these directors are to be perpetual, because it is proposed, that they should have the direction of the supplies for the army and navy, with an interest of ten per cent, to the emolument of the bank; these two directors are to be named by the Court, out of four chosen by the proprietors; in other respects the Court to have no influence. If this plan, which was originally a part of the scheme for the circulation of paper here, should succeed, the paper which will be discounted by it, will probably preserve its credit. The Gromios, companies possessed of exclusive privileges, will be annihilated, and much money, now dormant in the coffers of individuals, be called into circulation. The Gromios pay two and a half per cent interest, and the bank four, which difference, joined to the hopes of farther profits, will tempt the money-holders to withdraw their funds from the hands of the first, and place them in the latter. But these companies and their friends, oppose it strongly, as do also the persons employed in supplying the army and navy, with whom, it is said, people in various departments of Government have interested connexions.

The Courts of France and Spain seem determined to continue the war with vigor, and you will see by the King of Great Britain's speech, that he is not disposed to accommodation. The Empress of Russia still continues her endeavors to bring about a peace between England and Holland, to which the British Ministry has lately appeared to listen, although in a haughty manner. I am told the republican party is more exasperated than ever, by their answer to Russia, which is published. But your information will be much more accurate from Mr Adams, than any that I can procure. My correspondents from France write me, that the nation is much elated by the late triumph of the allied arms. This success, and the flourishing state of their commerce, reconcile them to the war, the continuance of which their Ambassador here regards as inevitable.

The resolution of Congress, prohibiting all intercourse between the citizens of America and the subjects of Great Britain, gives a secret satisfaction both in France and this country, and augments the jealousy of others, that the influence of France will exclude at the peace all amicable connexions between the States and Great Britain, at least this is the language of several of the foreign Ministers and their families. The Imperial Ambassador has lately made representations on account of an ordinance rigorously executed of late in the ports, obliging all captains of vessels to make an oath, declaratory of the contents of all packages, &c. &c. on board their vessels. He has endeavored to make this a common cause. The commerce murmurs against this, and other regulations lately enforced. It must be confessed, that Spain seems desirous to discourage all commerce carried on by foreigners, and bears as hard on their allies as on neutral nations. Whenever a peace takes place, France will be constrained to make a new convention on this subject. At present, this Court feels its importance, and the cabinet of Versailles has points of a nature so much more interesting to carry, that it takes little notice of the breach of conventions actually subsisting. By a late ordinance of the Minister of Finance, a duty of twentyfive per cent was imposed upon all produce brought in American vessels from the Havana. Mr Jay has made representations on this subject, which, I hope, will be attended to. M. Galvez appeared well disposed to withdraw them. It appears also to be the intention of the present Minister, to diminish the consumption of salt fish, to pave the way, as their friends give out, for its total exclusion at the peace, unless cured and imported by the natives; for this purpose, they have obtained bills of indulgence from the Pope, permitting the use of meat during Lent, and on other days on which it was prohibited. The price of these indulgences is proportioned to the rank of the purchaser. It is calculated, that the sale of them in the Spanish dominions will produce two millions of dollars annually; so that a double advantage is derived from this operation, the extraction of money for fish is prevented, and the revenue considerably augmented.

The present Ministry seem firmly established in their respective posts. The Count de Florida Blanca's health does not permit him to give constant application to business, but is not of so dangerous a nature as to cause any apprehension. The Ministers of the Indies and Marine keep their ground in the King's favor, although they have many enemies. If the disturbances in America should increase, the credit of the first may be weakened. The latter, although disliked by his colleagues and disapproved by France, preserves the Sovereign's good graces. He has one merit, which is his constant attention to the safety of the Spanish fleet, a merit that may fix him in his place, but which renders him odious to the nation and its allies, who wish to see it more actively employed.

I am afraid these particulars may appear trivial to Congress, to whom I should be happy to make more important communications; these are not to be obtained but by the dint of money, or by a long residence and intimacy with persons in the various departments of government. The first we have not for the most pressing exigencies, and the latter, our at present doubtful situation at this Court precludes us from in some degree; although neither attentions nor endeavors have been omitted to make useful acquaintances.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

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TO ROBERT R. LIVINGSTON.

Madrid, December 24th, 1781.

Sir,

Yesterday Mr Jay had an audience of his Excellency, the Count de Florida Blanca, in which that Minister in the most express terms assured him, he might depend on receiving three millions of reals to pay such bills as he had already accepted, this sum, with near eighteen thousand dollars received already, and twentyfive thousand promised by the Court of France, will fully answer this purpose, and I still hope ways and means will be found to furnish funds for the bills, which have not yet been presented, and which, for some weeks, come to hand slowly. The Minister also promised his good offices with the Court of Portugal, and informed Mr Jay, that previous to his application, he had endeavored to induce the Ministry of that nation to conduct itself with respect to the States, in a manner more agreeable to the rights of humanity and the law of nations founded on those rights, but that the party in favor of Great Britain preponderated hitherto.