Part 15

I find I was mistaken in saying in my last, of the 9th, that twenty thousand fusils had been shipped from Nantes and Bordeaux; upwards of ten thousand remain unshipped, at Nantes. Upon the strength of the promised remittance from our friends in Spain, and near one hundred thousand remaining in my hands, I have desired the Gardoquis to continue shipping blankets and strong shoes from Bilboa; twenty thousand livres worth of drugs, and salt to be shipped by Mr Cathatan of Marseilles; a thousand suits of soldiers’ clothes from Bordeaux, by Mr Bonfield; and six hundred fusils, of the Prussian make, from Berlin, that you may judge on arming a corps with them whether they are preferable to others.

My brother writes me from Vienna in a late letter, that Colonel Faucit is using the utmost endeavors to raise German recruits; but from the present state of things, I do not imagine he can succeed; and the North, that is Russia and Denmark, are not likely to give our enemies any assistance. As far as I can judge, their efforts against us, except a sort of piratical war, are exhausted. The same ministry continues. The House of Bourbon is certainly united against them. They have the same imbecility of council. Their enemies increase in proportion to the diminution of their means. The decay of their commerce, the distress of their people, the rapacity of their public officers, and the load of their debt and taxes, promise soon to bring upon them the most deplorable distress, and prevent them from being any longer a formidable enemy.

The flotilla is not yet arrived. The enclosed copies of Captain Jones’ letters, and one[37] from the majority of his crew, make me apprehend, that the Ranger will share the fate of the Revenge. We have done all in our power to bring him and his officers into order, but hitherto in vain.

I have the honor to be, &c.

ARTHUR LEE.

[37] Both missing.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, July 1st, 1778.

Gentlemen,

I enclose you some extracts, by which you will see, that war is not yet declared, though on all hands it appears to be fast approaching.

The Spanish flotilla is not yet arrived, nor their fleet from South America. Since my last, a French frigate of twentysix guns was attacked by an English frigate of twentyeight, off Brest, and after an obstinate engagement the latter made off, and soon after sunk! This has given great spirits to the French marine and nation, and is more especially fortunate, as the English were the aggressors. Admiral Keppel is before Brest, with twentythree sail of the line, where I believe he will not remain long unattacked. Permission is given to French subjects to fit out privateers; and orders are sent to all the ports to prepare our prizes to be sold. From London, the Ministry have offered us an exchange of prisoners, which we are taking the necessary measures to embrace.

By some unaccountable neglect the person, to whom Dr Franklin committed the printing of the bills resolved on for the loan, has not furnished them, so that nothing further is yet done in that business. But I hope you will soon have news of its further progress, and that some event will happen to furnish us with a very favorable moment for its execution.

I have the honor to be, &c.

ARTHUR LEE.

Mr Lee presents his respects to his Excellency Count d’Aranda, and begs he will have the goodness to forward the packet, addressed to Count de Florida Blanca, which he has the honor of enclosing him, and which is on business of the last importance, by the first opportunity to his Court.

TO COUNT DE FLORIDA BLANCA.

Paris, July 18th, 1778.

Sir,

I have the honor of transmitting to your Excellency the enclosed resolutions of Congress,[38] with my most earnest prayer, that they may be laid immediately before the King. Nothing but the uncommon exigency of the present war, attended with such peculiar circumstances with regard to the United States, would prevail upon them to press so much upon his Majesty’s goodness. That necessity must also plead my pardon for entreating your Excellency to let me have as early an answer as possible. As the United States have the highest confidence in the friendship of the King, they promise themselves that his goodness will afford this loan as a relief to their most urgent distresses. With regard to the interest for the quantum of that, they refer themselves to his Majesty’s justice. Five per cent is the legal interest with them, but I am authorised to give six, if his Majesty should desire it.

This interest will be most punctually paid; and they will neglect no means of liquidating the principle, if desired, sooner than the stipulated time, which will be easily accomplished, when peace or some other employment of the enemy’s navy than that of preying upon their trade will permit the export of their produce to European markets.

Your Excellency will perceive, that this loan is appropriated to sinking the paper money, which necessity obliged Congress to issue. An infant and unprepared people, compelled to defend themselves against an old, opulent, powerful, and well appointed nation, were driven to this resource of issuing paper. They were to create armies and navies, to fortify towns, erect forts, defend rivers, and establish governments, besides the immense expense of maintaining a war, that pressed them powerfully on all sides. For these purposes they had neither funds established, taxes imposed, specie in their country, nor commerce to introduce it. In this exigency paper money was their only resource, and not having been able hitherto for the same reasons to redeem it, the depreciation, which necessarily followed, threatens the total destruction of their credit, and consequently their only means of maintaining their independence.

In this distress their hope is fixed upon his Majesty, and I most earnestly beseech your Excellency so to represent our situation to the King, as may move his royal benevolence to furnish the relief, which will raise an everlasting tribute of gratitude in the minds of the people of the United States.

I have the honor to be, with the greatest respect, your Excellency’s most obedient, &c.

ARTHUR LEE.

[38] “_In Congress, December 3d, 1777._ The great quantity of paper money, issued to defray the necessary expenses of the war, having at length become so considerable as to endanger its credit, and Congress apprehending, that the slow operation of taxes may not be adequate to the prevention of an evil so pernicious in its consequences, and as experience proves, that the method of paying the interest by bills on France does not fill the loan office so fast as the urgent calls of war demand,

“_Resolved_, That the Commissioners at the Courts of France and Spain be directed to exert their utmost endeavors to obtain a loan of two millions sterling on the faith of the United States, for a term not less than ten years, with permission if practicable to pay the same sooner if it shall be agreeable to these States, giving twelve months’ previous notice to the lender, of such intention to return the money. That the Commissioners be instructed to consider the money hereby directed to be borrowed, as a fund to be applied, unless Congress direct otherwise, solely to the purpose of answering such drafts as Congress shall make for the purpose of lessening the sum of paper money in circulation.

“That in order more effectually to answer the good purposes intended by this plan, the Commissioners be also instructed to keep as secret as the nature of the thing will admit, whatever loan they shall be able to obtain for this purpose on account of the United States.”

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, July 29th, 1778.

Gentlemen,

I enclose you a duplicate of the news of an engagement between the fleets of France and England. The particulars received since make the loss on board the French fleet very inconsiderable, and paint the behavior of the English to have been inexpert and dastardly. The repulsing them in the first engagement will probably lead to the defeating them in the next, for which purpose the fleet of our allies will go out in a few days.

The Empress and Emperor seem at length sensible of the impropriety of their conduct, and in consequence a truce for six weeks is agreed on, to give time for negotiation to prevent the effusion of blood.

The quadruplicate of the ratification reached us on the 3d in safety, as all the rest have done. The answer of Congress to the Commissioners was immediately sent to the ministers, and will, I am persuaded, give great satisfaction.

It has been forgotten, I believe, to mention both in our joint and particular letters, that we have attended to the plan proposed by the Committee of sending the frigates to cruise in the East Indies, and upon considering all things it seemed to us impracticable at present. Better order must be established in our marine, and the ships’ companies better sorted, before it will be safe to attempt enterprises at such a distance, and which require a certain extent of ideas in the Captain, and entire obedience in the crew.

The authority of Congress for omitting the 11th and 12th articles of the Commercial Treaty, which was omitted in the other despatches, came safe in the last, and will be presented immediately to the minister, who has already agreed to have them expunged.

I enclose you our letter, and Mr Hodge’s answer, concerning the money expended at Dunkirk, together with a particular account of what he has received from the public banker.

I have the honor to be, &c.

ARTHUR LEE.

JAMES GARDOQUI TO ARTHUR LEE.

Madrid, August 13th, 1778.

Dear Sir,

My last respects went to you under the 23d ult. and referring you to my sequels with regard to your desires of me in money matters, I must beg leave to inform you, that the proposal you have made for borrowing money through the hands of a nobleman at your place is received, and that your being served therewith would give your friends on this side a real pleasure, but I am sorry to tell you, that it is impossible for the present. You will please to observe and consider upon the immense charges occasioned within these two or three years, and that all is done merely on account of your present quarrel, as likewise that such formidable preparations have been and will still be of infinite service to the Americans; besides which, it is well known to yourself, and more so to your worthy constituents, that great succors have been sent forthwith through various channels, and that the same is continued to this day, and will be so in future as much as possible.

In short, it is not doubted but you will represent the whole to your constituents, looking upon all in its true light, and observing that if affairs should be accommodated to their satisfaction and that of this side, the means of succoring you would be facilitated.

I am, Sir, your most obedient humble servant.

JAMES GARDOQUI.

JAMES GARDOQUI TO ARTHUR LEE.

Madrid, August 20th, 1778.

Dear Sir,

I confirm my last compliments to you under the 13th inst, wherein I observed how difficult it would be to borrow the two millions sterling here, under the present circumstances, more especially while the enormous charges and fitting out of vessels are carried on merely to protect your colonies, which are besides assisted with effective succors, and will be so in future as much as possible. Since my letter, I have maturely considered upon the matter, and it has occurred to me, that if your government means by it to take up all the paper that has been laid out, perhaps the cession of Florida to Spain, (in case you could reduce it,) might at the conclusion of peace produce, if not the whole, at least a great part of the funds required.

You will no doubt consider, that I cannot penetrate the way of thinking of our Court in this and other entangled matters, but judging like a merchant, I think a negotiation of this kind might well take place, for I imagine it would be proper for both, that the frontier in question should not remain in future in the hands of enemies or suspicious powers. There is, besides, a further negotiation which might be added to the great benefit of your States and this Court, and that is, your providing this kingdom with good timber for the Spanish navy at commodious prices.

I hope, Sir, you will excuse my liberty in pointing out these hints, to which I am led by the honest principle of friendship, and by the wished for view that the interest of both countries may be united upon a sincere and lasting footing; therefore I hope you will weigh the same as you may think more convenient, observing that I suppose you will not propose it to our Court, before you know how the honorable Congress thinks upon both objects.

I am with unfeigned esteem, &c.

JAMES GARDOQUI.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, August 21st, 1778.

Gentlemen,

I wrote you on the 28th ult. of my having pressed for the loan directed by Congress. I have received an assurance through the Ambassador, that an answer will be given to my memorial as soon as possible.

I enclose you a memorial for the consideration of Congress, as we do not think ourselves authorised to act upon it without express orders. Could one be sure, that justice would be done to the public, it might be of advantage to adopt this scheme, for Congress must not trust to the success of a loan, which, for the following reasons, I apprehend will be found impracticable.

The war in Germany supervening on that between us and Great Britain, and the preparations for it by France and Spain, have raised and multiplied the demand for money, so as to give the holders of it their choice and their price. The Empress Queen has engrossed every shilling in the Netherlands. England has drawn large sums from the Hollanders, who cannot easily quit their former market. France is negotiating a loan of one hundred million livres, which will exhaust Geneva and Switzerland. The money holders regard the lending their money at such a distance, as Jacob did the sending Benjamin into Egypt, and it is time only will make them endure the thought of such a separation.

These are the difficulties which the circumstances of things oppose to our scheme of a loan, and render the aid of some other operation necessary for sinking the superabundant paper.

The Minister’s answer relative to M. Holker was, that he had no authority from this Court, but on this our joint letter I expect will be more full. I have determined to write to you once a month or oftener, as opportunity offers, and as we do not write so frequently, I am tempted to mention things which should properly come from all the Commissioners, as they relate to the joint commission.

From the necessity of the case we have ventured to administer the oath of allegiance to those who desire passports of us, but I hope Congress will authorise their Commissioners to do so where it is necessary.

I have the honor to be, &c.

ARTHUR LEE.

TO JAMES GARDOQUI.

Paris, August 27th, 1778.

Dear Sir,

I received yesterday your favor of the 13th. If I remember rightly what made me delay writing to you relative to the bills was my desire of informing you, at the same time, of their being accepted; and it was long before I could learn that myself, from the manner in which they were drawn. I am very sorry it did you any disservice.

I am neither unmindful of, nor ungrateful for, the support we have received from your quarter. The inevitable necessity, which compelled an application for more, gave me great uneasiness. I was sensible the sum desired was very considerable. But so are our wants. It is our misfortune, not our fault, that we are obliged thus to trouble and distress our friends. I trust they will consider it in that light. There is nothing more precarious and immeasureable than what influences public credit. The sum sought would have enabled Congress to call in such a quantity of the paper emitted, as must establish the credit and value of the rest in defiance of all the efforts of our enemies. And I think that if our friends could lend us even as much as would constitute a fund here, on which Congress might draw, so as to call in at once one or two million dollars, it would greatly raise the value of the rest. This would require about eight or ten million livres. When it is seen that the redemption is begun, hopes and expectations will be raised, and credit grow upon them. But emitting more, without redeeming any, makes people think that no redemption is intended, and consequently produces doubts and discredit.

It is long ago that I foresaw, and I had the honor of stating it at Burgos, the necessity of providing for the support of our funds, or rather funds themselves, by the assistance of our friends in Europe. I will venture to say, that one million sterling, furnished in this manner, would have been a more effectual aid than all the preparations that have or can be made, unless they go to actual hostilities. Have these preparations prevented twelve ships of the line from being sent on our coasts to augment enormously that naval force, which was already sufficient to stop our commerce and prevent us from sending our produce to procure funds in Europe? When we argue against facts we deceive ourselves. The fact then is, that these preparations, however formidable, have had so little effect, that though our enemies were hardly a match for France alone at sea, they ventured, in the face of those preparations, to despatch a powerful fleet against us. Some how or other they did not believe those preparations were meant against them. Have they been deceived in the event? Has their temerity been chastised as it deserved? Has the fleet of Spain joined that of France to crush at one blow their divided naval power? I do not mean to question the goodness of the reasons for this; I mean only to state the fact. I mean to show too that it is not extraordinary, that we should desire other aid than that which, however well intended, does not effectually operate to the relief intended. It is our necessity, not our choice, that speaks. To make a diversion in our favor was benevolent, to send us clothing for troops and naval stores was generous and friendly, but if that diversion has not hindered our commerce from being obstructed by powerful fleets, if the utter discredit of our money for want of funds prevents soldiers, sailors, and others from engaging in our service, and exposes our country to the cruel depredations and devastations of an enraged enemy, can our friends think hardly of us, if we press them for that assistance which only can relieve our distress?

There is a passage in your letter, which, as I suppose it was not inadvertently inserted, I will give my opinion upon fully. It is “that if affairs should be accommodated to your and our satisfaction, the means of succoring us would be facilitated.” There is nothing we wish more than such an accommodation, consistent with our engagements and our future security. I can assure you, that no people are more averse to war than those of the United States. Were peace once established upon wise principles, leaving us such neighbors as the Spaniards, whose fair and unencroaching dispositions would prevent any attempts to disturb us, I do not see any reason to suppose we should ever be engaged in a foreign war. A war of ambition I am sure we shall never have. No people were ever more sensible of the value of peace, or more disposed to enjoy themselves and let others enjoy in tranquillity the fruits of their labor.

We are a young people, and have had fourteen civil governments to settle during the heat and pressure of a violent war, accompanied with every possible circumstance, that could augment the expense and difficulty usually attending a state of warfare. It is in this moment of distress, that our real friends will show themselves in enabling us to prevent those calamities, which, though they cannot subdue, will yet injure us infinitely. Our industry, were peace and commerce once established, would soon enable us to repay them, and they would be sure of a gratitude more lively and lasting.

Be so good as to assure our friends, that I have not omitted, nor shall I omit the smallest circumstance of their friendship and generosity, which has passed through me. I hope for a speedy and favorable answer to transmit to my constituents.

I have the honor to be, &c.

ARTHUR LEE.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, August 31st, 1778.

Gentlemen,

It has been hinted to me, that there will be two important subjects of negotiation with the Spanish Court, upon which I beg to have the orders of Congress.

1st. Providing the Spanish navy with masts at a stipulated and as reasonable a price as possible.

2d. The cession of Florida, should it be conquered, to them.

For this they would stipulate, whenever peace is concluded, to furnish the funds for redeeming all, or a great part of the paper.

I cannot presume to proceed at all on these propositions without express instructions. In the meantime, whatever further lights I can obtain shall be communicated immediately.

I have the honor to be, &c.

ARTHUR LEE.

TO JAMES GARDOQUI.

Paris, September 1st, 1778.

Dear Sir,

I received your favor of the 20th ult. last night, and will trouble you in addition to what I wrote on the 27th. It depends on your side to begin a treaty, of which, what you mention must be a part. I have already signified my powers and my readiness to do my part, without receiving any answer. My powers by commission are full, and the ratification confirms them specially. Neither my constituents nor myself will be found unwilling to make every reasonable return for any aid given us. There are no neighbors we could prefer to you.

By the last accounts from America, the British army and fleet, after a bloody battle in the Jerseys, were blocked up in New York by General Washington and Count d’Estaing.

It is not improbable they may be forced to surrender before they are released.

I have the honor to be, &c.

ARTHUR LEE.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Paris, September 9th, 1778.

Gentlemen,

I enclose you copies of the accounts, bills of lading, &c. of the articles, which I before informed you I should direct to be shipped, and which I pay for out of the funds intrusted to me alone. The only error I find in them is the charge of five per cent commission, which I shall endeavor to have rectified. It will be easy to compare the uniforms at 32 livres, with those furnished by Mr Monthieu at 37 livres, according to Mr Deane’s contract, and which Mr Williams reported to us ought to have been rejected; a report, which was concealed from me, as well as the contract.

I have before informed you of my having received remittances in bills, to the amount of 187,500 livres. As I knew it would not be necessary to expend this sum sooner than three months, I thought it better to get interest for it for that time, than let it lie idle. The enclosed receipt will show you, that I have succeeded with the first bill that was due, but I doubt if it will be practicable with the rest.