Aranjues, June 7th, 1780.
"His Catholic Majesty would be very glad to be able to furnish, at the present crisis, funds for the payment of the one hundred thousand pounds sterling, proposed to be addressed to Mr Jay, in order to evince the concern which the King takes in the prosperity and relief of the United States of North America, as well as in the personal satisfaction of the abovementioned gentleman. But the demands of the present war, and the great difficulty there would be to transport hither the treasures of the King"s possessions in that part of the world, render it impracticable to furnish here, the said sum in specie, as could be wished. Some expedient, however, may be found to remedy this inconvenience. For example; if the owners of the bills of exchange would be content with the security or responsibility of his Catholic Majesty, to pay the sum already mentioned in the term of two years. The King will readily agree to such an arrangement, even if it should be found necessary to add a moderate interest. This security, given by such a sovereign as the King of Spain, would induce the owners of those bills of exchange, and the creditors of Congress to consent to a measure so advantageous, and would equally serve to sustain the credit and good faith of the same body.
"Mr Jay, therefore, is entreated to reflect on the idea just stated to him, and in answer to inform us what measures he thinks suitable to this scheme, in order that they may be laid before the King, and his orders taken thereon. If the expedient in question should be adopted, it will at the same time be necessary to take measures in concert to reimburse to the King this considerable sum, as well as others already expended in favor of the United States. The first idea which offers for reciprocal convenience is that Congress should engage to build without delay some handsome frigates and other smaller vessels of war, fixing the price of each, and the time when they will be finished.
"This point once settled, it will be proper immediately to take measures to equip these vessels as fast as they are ready; to point out what articles will be necessary to send from Spain for this purpose, and in what port they will have notice to receive them. After this it is expedient to be informed, whether the Americans themselves will engage to come to the ports of Bilboa, St Ander, Ferrol, or Cadiz, for the said articles, which they will find ready, and afterwards transport them in their own vessels of war or letters of marque to America. On this supposition it is conjectured, that it would be easy to find hands enough in America to man these new built vessels, which will sail under Spanish colors. There are certainly among the subjects of the said United States many who have made the voyage, and are acquainted with the usual route of the ships of the English East India Company, and who know perfectly well the ports and places at which they stop. This fact established, it is proposed to equip in the ports of the United States four good frigates, and some other lighter vessels, with the effects which shall be sent from hence on account of Spain. This small squadron, under Spanish colors, shall be employed to intercept the convoys of the said Company by cruising in the proper lat.i.tudes. The measures just pointed out appear to be the most proper to reimburse, in some shape, the expenses already incurred by his Catholic Majesty, and to answer for such security as has been proposed to be given in this memoir. It being always understood, that a share of the prizes taken from the English by this small squadron shall be given to the crews, and even to Congress, in proportion to the a.s.sistance which they shall furnish for the equipment of the vessels.
"A speedy and decisive answer to all the points here enumerated is requested, and Mr Jay is too enlightened not to perceive that the common cause is interested therein."
To this paper, which deserves much attention, I returned the following answer.
"Aranjues, June 9th, 1780.
"Sir,
"The propositions which your Excellency did me the honor to send on the 7th inst. have been considered with all the attention, which their great importance demands.
"The evidence they contain of his Majesty"s friendly disposition towards the United States will, I am persuaded, make correspondent impressions on the citizens of America; and permit me to a.s.sure you, that his Majesty"s desire of contributing to my personal satisfaction by measures conducive to the welfare of my country, has excited my warmest acknowledgments and attachment.
"The enlarged ideas my const.i.tuents entertain of the power, wealth, and resources of Spain, are equal to those they have imbibed of the wisdom and probity of his Catholic Majesty, and of that n.o.ble and generous system of policy, which has induced him to patronize their cause, and, by completing their separation from Great Britain, effectually to disarm the latter. Such wise and liberal designs, followed by such great and extensive consequences, would add a bright page to the annals of a reign already signalised by important events.
It is, therefore, with deep regret that Congress would receive information that the aid they solicit, small when compared with their ideas of the resources of Spain, has been rendered impracticable by the expenses of a war, which, on the part of Spain, is of a recent date. Nor will their disappointment be less than their regret, when they find their credit diminished by the failure of a measure, from the success of which they expected to raise it.
"The kind disposition of his Majesty to become responsible at the expiration of two years for the amount of the bills in question, and that even with interest, is a proof of his goodness, by which I am confident the United States will consider themselves greatly obliged. But when it is considered that bills of exchange, immediately on being drawn and sold, become a medium in commerce, and pa.s.s through various hands in satisfaction of various mercantile contracts; that the drawer and every endorser become responsible for their credit at every transfer; and that the object of the merchants last holding the bills, as well as of all other merchants, is money in hand or actively employed in trade, and not money lying still, at an interest greatly inferior to the usual profits to be gained in commerce; I say, on considering these things, it appears to me that, although no objection can be made to the good faith of his Majesty, which is acknowledged by all the world, yet that the last holders of the bills will prefer recovering the amount of them, with the usual damages on protests, to delay of payment for two years with interest.
"Should these bills, therefore, meet with this fate, his Majesty will readily perceive its influence on the credit, operations, and feelings of the United States; on the common cause; on the hopes and spirits of the enemy. The necessity or prudence which detains his Majesty"s treasure in his American dominions, is an unfortunate circ.u.mstance at a time when it might be so usefully employed. There is, nevertheless, room to hope, that the great superiority of the allied fleets and armaments in the American seas will, in the course of a year or eighteen months, render its transportation safe and easy, and that the greater part of it may arrive before the bills in question would become payable.
This will appear more probable, when the time necessary to sell these bills, and the time which will be consumed in their pa.s.sage from America, and the time which will be employed in their journey from different ports of Europe to this place, are all added to the half a year which is allotted for the payment of them after they have been presented. I am authorised and ready to engage and pledge the faith of the United States for the punctual repayment, with interest, and within a reasonable term, of any sums of money which his Majesty may be so kind as to lend them.
"As to the aids heretofore supplied to the United States, I am without information relative to the precise terms on which they were furnished, as well as their amount. When I left Congress, they appeared to me not to possess full and positive intelligence on these points. I ascribe this, not to omissions in their commissioner, who then had the direction of these affairs, but to those miscarriages and accidents, to which the communication of intelligence to a distant country is liable in time of war. If it should appear proper to your Excellency, in order that I may be furnished with an accurate and full statement of these transactions, I will do myself the honor of transmitting them immediately to Congress; and, as they happened prior to my appointment, I shall request particular instructions on the subject.
"With respect to the plan proposed for the repayment of such sums as Spain may lend to the United States, viz. by the latter furnishing the former with frigates, &c. &c. I beg leave to submit the following remarks to your Excellency"s consideration. In the United States there are timber, iron, masts, shipwrights, pitch, tar, and turpentine; and Spain can furnish the other requisites. But neither the timber, the iron, the masts, nor the other articles, can be procured without money. The Congress are in great want of money for the immediate purposes of self-defence, for the maintenance of their armies and vessels of war, and for all the other expenses incident to military operations. The Congress, pressed by their necessities, have emitted bills of credit, till the depreciation of them forbids further emissions. They have made loans from their great and good ally, and, in aid of the system of gaining supplies by taxation and domestic loans, they have, for the reasons which I have already had the honor of explaining to your Excellency, drawn upon me the bills before mentioned. These bills will be sold in the United States for paper money, and that money will be immediately wanted for the purposes I have enumerated. If, therefore, this money was to be turned into frigates, the obvious ends of drawing those bills would not be attained.
The war against the United States has raged without intermission for six years already, and it will not be in their power to pay their debts during its further continuance, nor until the return of peace and uninterrupted commerce shall furnish them with the means of doing it.
"That excellent frigates and other vessels may be built in America cheaper than in Europe, I am persuaded. And I know, that Congress will cheerfully give every aid in their power to facilitate the execution of any plan of that kind, which his Majesty may adopt, but, Sir, their necessities will not permit them to supply money to those purposes, and I should deceive your Excellency with delusive expectations, were I to lead you to think otherwise. I would rather, that the United States should be without money than without good faith; and, therefore, neither my own principles of action, nor the respect due to his Majesty and reputation of my country, will ever suffer me (if my authority extended so far) to enter into any contracts, which I had not the highest reason to believe would be fully, fairly, and punctually performed on the part of my const.i.tuents. Nor, in case his Majesty should think proper to cause frigates to be built in America, can I encourage your Excellency to expect, that they could be easily manned there for cruises. The fact is, that the American frigates often find difficulties in completing their compliments, princ.i.p.ally because the seamen prefer going in privateers, which are numerous, and too useful to be discouraged.
"The design of preparing an armament to intercept the English East Indiamen appears to me very judicious. The enemy draw their resources from commerce; to annoy the one, therefore, is to injure the other. Before the present war, there were several, but not a great many Americans, well acquainted with the route of the East Indiamen. But whether any number of these men could now be secretly collected is uncertain; for if by a particular selection of and inquiry for them, the enemy should become apprized of the design, they would naturally take measures to frustrate it. For my part, I should suppose, that many of these men are not necessary, and that the proper number may be had from France, if not from America.
"The idea of the United States co-operating in the execution of this plan is flattering, and the terms proposed generous.
But so far as this co-operation will depend on the building of frigates there as proposed, it cannot be effected from their want of money. Whether the American frigates could be employed in such an enterprise, that is, whether the services, for which they may be already destined, will admit of it, are, with other similar circ.u.mstances, necessary to be known before that question could possibly be answered. The distance from America, and the length of time necessary to ask for and receive information and instructions from thence, are such, that it would probably be more expedient, that engagements for these purposes should be discussed and concluded there than here. The circ.u.mstances of the United States, while invaded, will be more fluctuating than those of Spain, and measures in which they might conveniently embark at one period, may shortly after be rendered impracticable by the vicisitudes of war. It is further to be observed, that a people, rising amidst such terrible struggles, with an extensive country to defend, and that country invaded, and, as it were, on fire in several places at once, are not in good condition for foreign enterprises; but, on the contrary, that it must generally be their interest, and of course their policy, to keep their forces and strength at home, till the expulsion of their enemies shall afford them leisure and opportunities for distant and offensive operations.
"Whenever this period shall arrive, his Majesty may be a.s.sured, that the United States will not remain idle, but that, impelled by resentments too deep and too just to be transitory, as well as by unshaken attachment to their friends, they will persevere with firmness and constancy in the common cause, and cheerfully unite their efforts with those of France and Spain, in compelling the common enemy to accept of reasonable terms of peace. I can, also, with great confidence, a.s.sure your Excellency that the United States will be happy in every opportunity, which may offer during the war, of joining their arms to those of Spain, and in co-operating with them in any expeditions, which circ.u.mstances may render expedient against the Floridas, or other objects. The Americans would most cheerfully fight by the side of the Spaniards, and by spilling their blood in the same cause, and on the same occasion, convince them of their ardent desire to become their faithful friends and steadfast allies.
"I cannot prevail upon myself to conclude, without expressing to your Excellency my apprehension of the anxiety, and painful concern, with which Congress would receive intelligence of the failure of their bills, and especially after the expectations they have been induced to conceive of the successful issue of their affairs here. What conclusions the enemy would draw from the inability of Spain to advance the sum in question, even to men actually in arms against Great Britain, I forbear to mention, nor would it become me to point out the several evil consequences flowing from such an event, to those who enjoy from nature and experience more discernment than I am blessed with.
"I still flatter myself, that some expedients may be devised to surmount the present difficulties, and that the harvest of laurels now ripening for his Majesty in America will not be permitted to wither for want of watering.
"Influenced by this hope, I shall delay transmitting any intelligence respecting this matter to Congress, till your Excellency shall be pleased to communicate to me his Majesty"s further pleasure on the subject.
"I have the honor to be, &c.
JOHN JAY."
Your Excellency will doubtless observe, that this answer does not comprehend all the objections to which the Minister"s plan is liable, such, for instance, as the proposal that the vessels proposed to be built in America, with the money of America, and to be navigated by Americans, should sail under _Spanish colors, &c._ I thought it most prudent to avoid taking notice of these and similar circ.u.mstances, lest objections, which might be ascribed to pride, as well as reason, might lose their force in that supposition, and, instead of convincing, serve only to irritate.
Nothing further pa.s.sed between the Minister and myself except a message or two respecting each other"s health, until the 19th day of June, when I sent him the following card.
"Mr Jay presents his respectful compliments to his Excellency, the Count de Florida Blanca, and takes the liberty of enclosing the copy of a note he has just received, respecting a bill drawn upon him for three hundred and thirtythree dollars. From this his Excellency will perceive the painful situation Mr Jay is in. He forbears making any reflections on it, being persuaded that his Excellency"s wisdom and sensibility render them unnecessary.
"_Madrid, June 19th, 1780._"
On the 20th instant I received the following answer.
Translation.
"The Count de Florida Blanca will have no difficulty in paying the bill of three hundred and thirtythree dollars mentioned in Mr Jay"s note of yesterday, both on account of its small value, and in consequence of what he had the honor to offer him at their last conference; but he cannot forbear observing to Mr Jay, that it will be impossible to show the same complaisance for other bills without consulting the pleasure of the King.
"The means. .h.i.therto proposed not having been considered as agreeable to Congress, it has become necessary to seek for others, and Mr Jay will do well to think seriously on this subject, and communicate to the Count de Florida Blanca whatever his wisdom and information may suggest to him."
This looked dry, and indicated a degree of irritation, though it held up the idea of further means.
I replied to it on the 22d of June, as follows.
"Madrid, June 22d, 1780.
"Sir,
"I received the note your Excellency did me the honor to write on the 20th instant, and I take the earliest opportunity of expressing my thanks for your Excellency"s permission to accept the bills mentioned in it, which I have accordingly done.
"Agreeably to your Excellency"s recommendation in the first conference, I have turned my thoughts very seriously to the objects which were the subjects of it, relative to the bills drawn upon me; they were two.
"1st. The means of paying these bills.
"2dly. The proposed contract with America for light vessels, &c.
"With respect to the _first_, it appeared to me, that the princ.i.p.al difficulty was removed by your Excellency"s informing me, "_that at the end of the present year, it would be in your power to advance twentyfive, thirty, or forty thousand pounds sterling_." Hence I inferred, that as much time would be taken up in the sale, negotiation, and transmission of those bills, and as so long a s.p.a.ce as six months was a.s.signed for their payment, after being presented, that the sums which it would be in your Excellency"s power to advance at the end of the year, would probably be equal to the amount of the bills which would then become payable; and that in the mean time such further means might be provided, as would obviate difficulties with respect to those that might afterwards become due. When I reflected that I was a stranger to the resources of Spain, and that your Excellency"s acknowledged abilities comprehended all the objects and combinations necessary in determining what supplies they were capable of affording, and the manner and means most proper for the purpose, it appeared to me in the light of presumption to hazard to your Excellency any propositions on the subject.
"2dly. On considering the proposed contract, it became important to distinguish between the building these vessels with the money of the United States, or with that of Spain.
The latter was very practicable, and I gave your Excellency that opinion in my letter of the 9th instant. The former, on the contrary, appeared to me not to be within the power of the United States, and candor obliged me to make this known to your Excellency in the same letter.
"I knew it to be impossible for Congress, consistent with good faith, to contract; that, notwithstanding their great want of money, the injuries of a six years" war, and their being actually invaded, they would repay immediately the monies lent them, either in ships or otherwise. It is not uncommon for ancient and opulent nations to find it necessary to borrow money in time of war, but I believe it very seldom happens, that they find it convenient to pay those debts till the return of peace. If this be the case with powerful and long established nations, more cannot be expected from a young nation brought forth by oppression, and rising amidst every species of violence and devastation, which fire, sword, and malice can furnish for their destruction.
"If attentive only to obtaining payment of these bills, and thereby relieving my country from the complicated evils which must result from their being protested, I had entered into the proposed engagements for immediate repayment, by building vessels, &c. if I had done this, notwithstanding a full conviction, that the contract so made could not be fulfilled, my conduct, however convenient in its immediate consequences, would have been highly reprehensible. This reflection, therefore, will I hope convince your Excellency of the purity of my intentions, and induce you to ascribe my objections to the contract, to want of ability, and not to want of inclination in the United States to perform it. No consideration will ever prevail upon me to practise deception, and I am happy in a persuasion, that although truths may sometimes not please, yet that when delivered with decency and respect, they will never offend either his Majesty or your Excellency.
"Believe me, Sir, the United States will not be able to pay their debts during the war, and therefore any plan whatever calculated on a contrary position must be fruitless. I am ready to pledge their faith for repaying to his Majesty, within a reasonable term after the war, and with a reasonable interest, any sums he may be so kind as to lend them. What more can I offer? What more can they do? If there be any services they can do to his Majesty, consistent with their safety and defence, they are ready and will be happy to render them. They respect the King and the nation, and at the very time they are requesting his aid, they are soliciting to be united to him by bonds of perpetual amity and alliance.
Against his enemies as well as their own, they are now in arms; and the supplies they ask are not for the purpose of luxury or aggrandizement, but for the sole and express purpose of annoying those enemies, and enabling France, Spain, and themselves, to obtain a peace honorable and advantageous to each.
"Of his Majesty"s kind disposition towards them, they had received not only professions but proofs. Hence they became inspired not only with grat.i.tude, but with confidence in his friendship. Impelled by this confidence, and a particular concurrence of exigencies already explained to your Excellency, they drew the bills in question. The issue of this measure will be highly critical, and followed by a train of consequences very important and extensive. The single circ.u.mstance of your Excellency having permitted me to accept the first of these bills, will be considered by our enemies as an unfortunate omen. By predicting from it further aids, their ideas of the resources of Spain, and the resistance of America will naturally be raised, and their hopes of subduing the one, or reducing the power of the other, will naturally be diminished. They will impute these aids to a plan of the House of Bourbon, wisely concerted and firmly persisted in, to secure themselves and all Europe against the ambition of Britain, by completing the division of her empire, and they will cease to flatter themselves, that America thus aided will become dest.i.tute of resources to carry on the war. On the other hand, America will derive fresh vigor from this mark of friendship, and their attachment to his Majesty become proportionably more strong. By mutual good offices, friendship between nations, as between individuals, is only to be established; and it is always a happy circ.u.mstance when it subsists between those, whom nature has placed contiguous to each other. But your Excellency"s time is of too great importance to be engaged by such obvious reflections.
"Permit me, Sir, still to indulge the pleasing expectation of being enabled to inform Congress, that his Majesty"s magnanimity and friendship have prompted him, though inconvenient to his own affairs, to secure the credit of their bills; and I am persuaded that the benevolence of your Excellency"s disposition will be gratified in being instrumental in a measure, which would make such agreeable impressions on the hearts and minds of so great a number of steadfast friends to the Spanish monarchy.