TO MR. HAMMOND.
Philadelphia, June 5, 1793.
Sir,
In the letter which I had the honor of writing you on the 15th of May, in answer to your several memorials of the 8th of that month, I mentioned that the President reserved for further consideration, a part of the one which related to the equipment of two privateers in the port of Charleston. The part alluded to was that wherein you express your confidence that the executive government of the United States would pursue measures for repressing such practices in future, and for restoring to their rightful owners any captures, which such privateers might bring into the ports of the United States.
The President, after a full investigation of this subject and the most mature consideration, has charged me to communicate to you, that the first part of this application is found to be just, and that effectual measures are taken for preventing repet.i.tions of the act therein complained of; but that the latter part, desiring rest.i.tution of the prizes, is understood to be inconsistent with the rules which govern such cases, and would, therefore, be unjustifiable towards the other party.
The princ.i.p.al agents in this transaction were French citizens. Being within the United States at the moment a war broke out between their own and another country, they determine to go into its defence; they purchase, arm, and equip a vessel with their own money, man it themselves, receive a regular commission from their nation, depart out of the United States, and then commence hostilities by capturing a vessel, If, under these circ.u.mstances, the commission of the captors was valid, the property, according to the laws of war, was by the capture transferred to them, and it would be an aggression on their nation, for the United States to rescue it from them, whether on the high seas or on coming into their ports. If the commission was not valid, and, consequently, the property not transferred by the laws of war to the captors, then the case would have been cognizable in our courts of admiralty, and the owners might have gone thither for redress. So that, on neither supposition, would the executive be justifiable in interposing.
With respect to the United States, the transaction can be in nowise imputed to them. It was in the first moment of the war, in one of their most distant ports, before measures could be provided by the government to meet all the cases which such a state of things was to produce, impossible to have been known, and, therefore, impossible to have been prevented by that government.
The moment it was known, the most energetic orders were sent to every State and port of the Union, to prevent a repet.i.tion of the accident.
On a suggestion that citizens of the United States had taken part in the act, one, who was designated, was instantly committed to prison, for prosecution; one or two others have been since named, and committed in like manner; and should it appear that there were still others, no measure will be spared to bring them to justice. The President has even gone further. He has required, as a reparation of their breach of respect to the United States, that the vessels so armed and equipped, shall depart from our ports.
You will see, Sir, in these proceedings of the President, unequivocal proofs of the line of strict right which he means to pursue. The measures now mentioned, are taken in justice to the one party; the ulterior measure, of seizing and restoring the prizes, is declined in justice to the other; and the evil, thus early arrested, will be of very limited effects; perhaps, indeed, soon disappear altogether.
I have the honor to be, with sentiments of respect, Sir, your most obedient and most humble servant,
Th: Jefferson.
LETTER CLIV.--TO GOUVERNEUR MORRIS, June 13, 1793
TO GOUVERNEUR MORRIS.
Philadelphia, June 13, 1793,
Dear Sir,
It has long since been observed, that of the three millions of livres given by the court of France to aid us in the commencement of our revolution, one million was unaccounted for by the hands into which it was paid. The date of the payment is fixed to have been the 10th of June, 1776, but to whom it was paid has never been known. Suspicions are, that it was to Beaumarchais; and that with this very money he purchased the supplies furnished us by him, for which large sums have been paid him already, and a further large sum has lately been certified to be due to him as the balance of the account. I enclose you a letter from the Secretary of the Treasury on this subject, with all the papers relative to the same which his office can furnish: and as you are on the spot, I must beg the favor of you to make an immediate and thorough investigation of it. No reasons of State can now exist for covering the transaction longer under mystery.
I have the honor to be, with great and sincere esteem, Dear Sir, your most obedient and most humble servant,
Th: Jefferson.
[The letter of the Secretary of the Treasury, and other papers, relative to the lost million alluded to in the letter to Mr. Morris.]
LETTERS--RE THE LOST MILLION, June 10, 1793
Treasury Department, June 10, 1793. Sir,
The comptroller of the Treasury has reported to me, that "on examining the subsisting contracts between the United States and the government of France and the Farmers General, and a comparison thereof with the foreign accounts and doc.u.ments transmitted to the Treasury, the following facts appear.
That previous to the treaty of February, 1778, the sum of three millions of livres had been advanced by the government of France to the agents of the United States, under the t.i.tle of gratuitous, for which no reimburs.e.m.e.nt was to be made.
That the payments, which composed the before-mentioned sum of three millions of livres, are stated, in a letter of Mr. Durival to Mr. Grand, dated in 1786, to have been made at the following periods:
One million delivered by the Royal Treasury the 10th of June, 1776, and two other millions advanced also by the Royal Treasury in 1777, on four receipts of the Deputies of Congress, of the 17th of January, 3rd of April, 10th of June, and 15th of October of the same year.
In the account of Mr. Ferdinand Grand, banker of the United States, the following sums are credited, viz.
1777.--January 31, .... 500,000 livres.
April 26, ...... 500,000 June 4, ........ 1,000,000 July 3, ........ 500,000 October 10, .... 500,000
Amount in the whole, .. 3,000,000 livres.
The Farmers General of France claim a large balance from the United States, on account of one million of livres which they contend was advanced in June, 1777, in consequence of a special contract with Messrs. Franklin and Deane, to be repaid by the delivery of tobacco at certain stipulated prices, and the advance made by the Farmers General is said to be the same money, as is credited by Mr. Grand on the 4th of June, 1777.
After a careful examination of the foreign accounts, it is found that no more than three millions of livres have been credited by any agents of the United States.
An opinion was entertained by the late officers of the Treasury, that the sum claimed by the Farmers General composed a part of the sum supplied as gratuitous aid by the government. Subsequent explanations have however rendered it probable, that, including the claim of the Farmers General, the sum of four millions of livres were in fact received; it is, however, indispensable that it should be known to whom the money was paid.
The most direct mode of obtaining this information will be, to call for copies of the receipts mentioned in Mr. Durival"s letter of 1786, and more particularly, a copy of that said to have been given on the 10th of June, 1776."
And as explanatory of the transaction, he has sent me the doc.u.ments herewith transmitted.
The most likely conjecture, in my mind, considering the period of the advance and the circ.u.mstances of that period, is, that the unaccounted-for million went into the hands of M. de Beaumarchais.
The supplies which he furnished to the United States exceeded his own probable resources, besides the imprudence of having hazarded so much at that stage of our affairs upon our ability to pay. And there were many symptoms, at the time, of his having been secretly put in motion by the government.
It is now become urgent, that the truth of the case should be known. An account has recently pa.s.sed the auditor"s office, admitting in favor of M. de Beaumarchais a balance of four hundred and twenty-two thousand two hundred and sixty-five dollars and thirteen cents, with a reservation only of the question of the million. If he has received that million, which has been acknowledged as a free gift from the French government, it is unjust that he should be able to establish a claim against the United States for supplies which must have been the proceeds of that sum. If he has never received the million, every, day"s suspension of his claim, after the immense delays heretofore incurred, is a grievous hardship upon him. It concerns materially the interests, and more the justice, the credit, and the character of the United States, that as speedy a solution as possible of the enigma may be obtained.
With a view to this, I have the honor to make you the present communication, that you may be pleased to take such steps as shall appear to you the most proper and efficacious to procure, as speedily as the nature of the case will admit, the requisite explanations. With respect, I have the honor to be, &c.
Alexander Hamilton.
_Letter from Mr. Grand to ------ ------_
Paris, September 9, 1786.
Dear Sir,
The letter you honored me with, covered the copies of three letters which Mr. Thomson wrote you to obtain an explanation of a million which is not to be found in my accounts. I should have been very much embarra.s.sed in satisfying him and proving that I had not put that million in my pocket, had I not applied to M. Durival, who, as you will see by the answer enclosed, informs me that there was a million paid by the Royal Treasury on the 10th of June, 1776. This is the very million about which Mr. Thomson inquires, as I have kept an account of the other two millions, which were also furnished by the Royal Treasury, viz.:
The million in January and April, 1777; the other in July and October of the same year; as well as that furnished by the Farmers General in June, 1777.
Here then are the three millions, exactly, which were given by the King before the treaty of 1778, and that furnished by the Farmers General.
Nothing then remains to be known but who received the first million in June, 1776. It could not be by me, who was not charged with the business of Congress until January, 1777. I therefore requested of M. Durival the copy of the receipt for the one million. You have the answer which he returned to me. I wrote to him again, renewing my request, but as the carrier is just setting off, I cannot wait to give you his answer, but you will receive it in my next, if I receive one. In the mean while, I beg you will receive the a.s.surances of the sentiments of respect, with which I have the honor to be, my Dear Sir, your most obedient and most humble servant,