Gentlemen,

My last to the Committee was of the 25th ultimo, since which time Mr Jay has received a letter from Dr Franklin, to whom, as well as to the Count de Vergennes, he wrote on the subject of his disappointment in money matters here; this letter has given us much pleasure. The Court of France continues to manifest the same generous conduct towards us as ever, notwithstanding its own embarra.s.sments for money. It has in fact agreed to furnish another million of livres, to answer new demands and old claims. Among the former, Dr Franklin comprised the twentyfive thousand dollars drawn by the order of Congress on Mr Jay.

Only two bills of that sum have as yet been presented, and between eighty and one hundred thousand of those first drawn, all of which have been accepted.

Every post augments the sum, and we are still uncertain whether money will be procured in time to pay them, particularly should the bills for the whole soon come to hand. The Minister apparently has endeavored, and is endeavoring, to procure money for this purpose. M.

Gardoqui, who will probably succeed M. Miralles, and a gentleman who planned the loan I mentioned in my letter of the 9th ultimo, are interesting themselves in this business. If either of these gentlemen can procure money, or if the Crown can obtain it by other means, it is probable that Mr Jay will be furnished with a part, if not the whole of the money necessary for this use. But I am still afraid its ability will not correspond with our wants and our wishes. The Court has given orders to enable Mr Harrison at Cadiz, to obtain and ship the clothing for ten regiments, mentioned in my last. This gentleman is a native of Maryland, is well known in that State, and has on this, as on all occasions, manifested a disinterested zeal in the service of his country.

There is no alteration in the political state of Europe since my last, and no event of consequence in the operations of the war. The convention for the armed neutrality is not finally concluded, but I am told the Empress of Russia is determined to maintain the system proposed by her. The States of Holland have not yet acceded to it.

Their Plenipotentiaries were instructed to add some articles; one of which is, to procure the rest.i.tution of their vessels unlawfully captured by the English, another to make it a common cause, in case the Republic should be molested in consequence of her accession, and also that her possessions in all parts of the world, should be guarantied by the contracting parties. Their mediation is also proposed to bring about an accommodation between the powers at war.

These articles in the instructions, were inserted by the friends of England, in order to r.e.t.a.r.d, if not defeat the measure, so far as it respected the States. It has leaked out from the Court of Petersburg, perhaps expressly, that the English Minister at that Court, declared to the Empress, that the King was disposed to respect the neutrality, provided Holland was excluded. This has come to the knowledge of the plenipotentiaries, and it is supposed on being known to the States, will hasten the conclusion of the affair, which must put an end to the piratical rapacity of Great Britain, or involve her in new and great difficulties.

Two Russian vessels, captured and carried into England, have been released, while Dutch vessels with similar cargoes are condemned. The Court of Portugal has given orders to equip several vessels of war, and seems inclined at present to preserve a strict neutrality, prompted to this more by fear than inclination. The combined fleet is still at Cadiz, it consists of between forty and fifty sail of the line, and has provisions on board for six months. The Count d"Estaing has provided clothing for the winter, for his seamen and marines, and M. de Guichen is expected with much impatience. His destination is a secret, but I think he has a strong desire of visiting our part of the world once more. He will not be inactive, if he can avoid being so.

The Committee will probably take notice of an article in the foreign papers, which mentions a revolt in Peru. This if true and serious as represented, would be an event as important as disagreeable. I have as yet no reason to believe it of the nature represented, if true. The Ministry have taken no extraordinary measures, in consequence of this intelligence, except the fitting out some packet boats for that part of the world, which may be done to obtain more regular advice, than they have had from thence for some time past. If it should appear, that there is any foundation for this report, you may depend on my endeavors to give the earliest and most accurate information I can obtain with respect to the causes and consequences of such an event.

Mr Jay means to send soon large packets to Congress, to which I beg leave to refer the Committee for more minute details on the subject of this and my other letters, than I can furnish it, from not being in possession of the various papers, and communications which respect the mission.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, November 28th, 1780.

Gentlemen,

I did myself the honor of addressing the Committee frequently in the course of the last month; this letter, therefore, can furnish little besides a confirmation of what I then believed to be the disposition of the Court, of the state of Europe, and of this part of it more particularly, derived from the best information in my power to obtain.

I have in a great measure confined my inquiries to two objects, the situation of the finances of Spain and its disposition toward us and our ally. Every day gives me reason to think the former are critically circ.u.mstanced. I know from good authority the ways and means for the next year are not devised yet, and I have great reason to believe that the necessary funds cannot be procured by taxation, because the augmentation of the present year"s taxes has not produced what the Ministry expected, and neither the commerce nor produce of Spain will permit further efforts in this way. In short, the current expenses of 1780 have exceeded the revenue twentyfive millions of dollars, and notwithstanding, the arrearages to the public creditors are considerable.

The loan for nine millions of dollars, mentioned in my former letters, is not yet completed, in part owing to the obstacles thrown in its way by M. Necker. The resentment of the Spanish Ministry, which this interference excited, has not yet subsided, and I am afraid the prejudices thereby excited will not soon be eradicated, although common interest may stifle them apparently at present. The mode of raising money in the manner heretofore mentioned may become the only plan practicable, should others now in contemplation not succeed, and Spain may be obliged to have recourse to paper, from inability to procure money by other methods.

The Court of Great Britain is well informed of their situation through Mr c.u.mberland, their emissary here, who spends a great deal of money.

Influenced by which, and other advices, the King has, in his speech to Parliament, openly avowed his determination to prosecute the war with vigor, and he will be supported by a great majority in both houses.

From the best information I have been able to collect, I am sorry to tell you, that the nation will be able to borrow the sum demanded for the expenditures of 1781, which with the usual vote of credit at the end of the session, will amount to sixteen millions sterling at least.

The scheme of the Ministry to effect this is not yet public, but I am told, it will be on similar conditions to those of the present year.

Ninetytwo thousand men are voted for the marine, and I have reason to think a considerable reinforcement will be sent early to the southward, and that agreeably to a proposition of Sir J. Amherst, the enemy means to occupy and fortify strongly a port near the month of Chesapeake Bay, from which with a strong garrison and a naval force, they hope to interrupt the navigation of the Bay, and by frequent incursions prevent the States of Maryland and Virginia from sending supplies of men, &c. &c. to the Carolinas. Among the troops mentioned to be embarked there, are three regiments of light dragoons. Your servants nearer Great Britain will give you more accurate information.

I am persuaded that our ally will take early measures for defeating these designs. This latter information is derived indirectly from conversations with men in a situation to be well informed. The disposition of this Court depends much on its hopes of obtaining the objects for which it commenced the war, and I should not merit the confidence reposed in me if I did not tell you plainly, that I believe that the exclusive possession of the Gulf of Mexico is the favorite object, and that if they cannot obtain it by a connexion with the United States, they will endeavor to procure it, by a general, if not by a separate peace, to which the King"s good faith is, perhaps, at present the greatest obstacle. The Congress knows best the situation of their affairs, and I hope it may be such as to enable them to preserve the rights of all the States.

As I have frequent occasions of seeing the foreign Ministers here, and their Secretaries, I am too often obliged to remark their partiality for Great Britain, and jealousy of the house of Bourbon, particularly those of Russia, Vienna, Sardinia, Portugal, and Holland. Some of these, in my opinion, are the best spies England employs here.

Jealousy on the one hand, and on the other compa.s.sion and admiration, begin to take the place of envy and interest. The transition from these to friendship and support is not difficult, if their masters do not differ in sentiments from their servants. Our perseverance, vigor, and exertions occasion a hesitation with respect to the event of the war, which augments or diminishes in proportion to their ideas of the intentions of this Court, which leads me to think it probable, that if Spain would enter into positive engagements with the United States, the hopes of the enemy to divide the allies would be at an end; the neutral powers would think our independence certain, and would endeavor to terminate the war, while Great Britain is in such a situation as to be able to preserve her other possessions.

Should the situation of affairs in America be in a worse situation than I hope they are, and should the Congress judge it necessary for their establishment to make further advances and sacrifices, permit me to take the liberty of observing, that these offers should be accompanied with a proviso of this Court"s avowing the independence of the States immediately, otherwise the offers should be considered as null, and no pretensions formed thereon in a treaty for a general peace. At the same time, it might suit the States to procure a sum in specie from the Spanish settlements in America, and to obtain certain advantages of preference in the admission of the produce of their fisheries into the ports of Spain. I think it my duty to write you fully and freely the sentiments which arise from the opportunity of information you have given me, and should be happy to give you such as would be more acceptable to you, and more conformable to my wishes.

Mr Jay has received and accepted your bills to the amount of fifteen thousand dollars, and I hope will be enabled to pay them; but this business has thwarted the other part of his mission here, in showing our necessities so plainly. For this Court seems to expect equivalents for services rendered, and the interest of money advanced to us is not its object. This leads me to repeat what I mentioned in a former letter, of the King"s satisfaction for a resolution of Congress, permitting the exportation of flour to the Havana, and that every similar manifestation of amity will much contribute to counteract the intrigues of the enemy here. The Minister of the Indies lately a.s.sured me, that his Majesty had directed him to return thanks, through the Chevalier de la Luzerne, for the respect shown at the interment of M.

Miralles.

Having mentioned this gentleman, I am induced to speak of his intended successor, M. Gardoqui, who has now been named near five months, yet is still here. This detention is one reason among many others, which makes me fear the Court has not taken a decisive part for the next year, although the last declarations of the Minister on this subject were clear and positive. I have purposely omitted speaking of the operations of the war in Europe, and other articles of intelligence, in order to have it in my power to give you the latest I have received. I hear from England, that Mr Laurens is closely confined, and treated as a prisoner of State. The Committee may be persuaded, that retaliation on some of the English prisoners of consequence, will be regarded in Europe as a proof of the confidence of Congress in the support of the people.

A copy of the proposed treaty with the States of Holland, was taken among the papers of Mr Laurens, and sent by the British Ministry to the Stadtholder, who endeavored to criminate the Pensionary of Amsterdam and those concerned with him, in consequence of this discovery. He is, however, supported by the Regency, and this step of the Stadtholder, not having the effect intended, Sir Joseph Yorke has presented a violent and menacing Memorial to the States, demanding the punishment of the Pensionary and his accomplices.[8] I am advised that this Memorial has irritated in place of intimidating, and that since four of the seven States have agreed to accede to the armed neutrality, the persons attacked by the British Court have no apprehensions, and, possibly, the capture of these papers may eventually be of great advantage to the United States, by precipitating the conduct of England, and obliging the States to take a part contrary to their dispositions, and, perhaps, to the interest of one or other nation. The situation of M. Dumas is rendered more critical by this circ.u.mstance, and it would be injustice to him not to mention, that he is indefatigable to contribute to our information by his correspondence, and by his frequent publications to represent our situation in the most favorable point of view.

Mr Jay will transmit Congress a full state of our affairs here, with all the papers necessary to elucidate it. I have seen but one letter from Congress since my residence in Spain, from which I conjecture Mr Jay has received but one. He informs me he has written Congress, that it has not been my fault, that all copies of letters for their inspection did not appear with my signature. In the month of May, I answered in writing the instructions he gave me at Cadiz, as I did _viva voce_ at Aranjues in April, before he entered Madrid. I should not mention this circ.u.mstance to the Committee, if I did not know that copies of these instructions had been forwarded to Congress, and only abstracts of the most important part of my answer sent them; I will take the liberty, therefore, of sending by the first safe opportunity the whole of my answer, from no other motive than that of evincing my desire to comply in every point with the duties of the trust reposed in me.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

_P. S. December 8th._--The Count d"Estaing sailed the 7th ult. from Cadiz, and, as yet, we have no news of his arrival in France. Mr c.u.mberland is still here, and waits an answer to despatches sent by the Abbe Hussey to England, which is daily expected. Mr Jay has received a letter from the Count de Vergennes, that France cannot provide for the payment of your bills here. But I always hope the credit of America must not be ruined for want of 100,000 sterling, although, personally, your servants have not money to pay their debts.

W. C.

FOOTNOTES:

[8] See all the above papers in the Annual Register for 1780, pp.

356-380.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, December 19th, 1780.

Gentlemen,

I wrote to the Committee the 20th ult. to which letter I beg leave to refer them. Having now an opportunity of writing by a vessel, which conveys a copy of my last, I seize it to inform them that the situation of our affairs here is much the same as at that period. Mr Jay has received near eighteen thousand dollars to pay the bills first accepted, and this, with the twentyfive thousand expected from France, will give us a respite until the month of March. In the interval, I hope the Court will enable Mr Jay to answer the others as they become due, though this will depend much on the facility it finds to procure money. I have reason to think that the Ministry expect some treasure from America, that they hope to negotiate in Holland a loan of forty millions of reals, and another at home and abroad for eight millions of dollars. I shall be glad to see these expectations realised.

The States of Holland have acceded to the armed neutrality; notwithstanding this, the English contrive to take their ships every day, and it is not improbable, that orders have been given to attack their possessions in the East Indies. No satisfaction has, as yet, been given by the States in answer to the Memorial of Sir Joseph Yorke, mentioned in my last. The Dutch Minister and his Secretary have each told me, that it would be considered as words, and answered as such.

The Empress Queen is dead, which leaves the Emperor to act at full liberty. He is said to be ambitious and revengeful, and well disposed to Great Britain. I know that his Envoy at this Court is strongly attached to the interests of that country; but his father, the Prince de Kaunitz, was too long the favorite of the mother, to expect to hold the same influence with the son. It is to be hoped, that the ensuing campaign will pa.s.s, before the Emperor can be in a situation to embroil the affairs of Europe.

The Count d"Estaing, who sailed from Cadiz the 7th ultimo, was not arrived in France at the departure of the last courier. This is an unlucky circ.u.mstance, as it will r.e.t.a.r.d the operations of the ensuing year. Mr c.u.mberland is still here, and entertains hopes of success, or affects to do so. The Count de Montmorin seems to have no apprehensions, and while that is the case, I flatter myself that we need not be uneasy at a circ.u.mstance, which in itself is very extraordinary. I do not think, however, that M. Gardoqui will leave Spain, until all hopes of negotiation cease. We have no advices, or indeed arrivals, since the departure of the frigate, which brought the son of M. Rochambeau to France. Many of the letters taken with Mr Laurens have been published in England. I take the liberty of reminding the Committee, that I have never had the honor, as yet, to receive their orders.

I have the honor to be, &c.

WILLIAM CARMICHAEL.

TO THE COMMITTEE OF FOREIGN AFFAIRS.

Madrid, January 4th, 1781.

Gentlemen,

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