Our merchants would, in my opinion, do well to write their endors.e.m.e.nts on bills at length, and in their own hand writing. There is reason to believe that the enemy often turn blank endors.e.m.e.nts to good account.

M. Gardoqui is here. Those ships of the Spanish flotilla, which carried the treasure, are arrived at Cadiz. Trenches are not yet opened against Fort St Philip at Minorca. Another expedition is preparing at Cadiz; its destination is uncertain.

I have the honor to be, &c.

JOHN JAY.

ROBERT R. LIVINGSTON TO JOHN JAY.

Philadelphia, November 1st, 1781.

Dear Sir,

Your letter to Congress of April last having been read and answered by them, though not so minutely as I would wish, I forbear making any remarks upon it, because I am not yet perfectly acquainted with their sentiments, (and would not wish any which might interfere with them) having just entered upon the office, in consequence of which I open this correspondence, though long since appointed. I beg of you, agreeably to the directions of Congress, to address in future your public letters to me, and to notify the Count de Florida Blanca of this alteration in our system, our unacknowledged situation rendering it improper to do it formally.

Congress have at length completed the organization of their executive departments, by the choice of General Lincoln for their Secretary at War. It is expected that order and system will arise out of this mode of doing business, and the strictest economy.

If the great powers of Europe, with every advantage that settled governments enjoy, feel themselves under the necessity of making foreign loans, can it be expected that a war of six years, in the heart of our country, should not have abridged the resources of a State, which had every necessary for their army to import; which never manufactured for itself; which had no marine; and which, with a number of internal enemies in their bosom, had civil governments to establish? Perhaps it would be impossible to offer a better picture of the resources of this country, and the stability of her funds when they shall be well managed, than by comparing our present debt with the duration of the war and the exertions we have made. For though our enemies may allege, that our debt was relieved by the depreciation of our bills, yet it must be remembered, that that very depreciation was a tax, though an unequal one, borne by the people of these States, and as it has not produced national ruin, it must follow, that the States had sufficient resources to bear this burthen. These resources, though lessened, still remain.

The only object for which Britain continues the war, is the recovery of this country. What better plan of finance then can be adopted by France or Spain, than by timely aids of ships and money to blast this hope, and by a speedy peace to terminate their expenses? If, on the contrary, they wish to linger out the war till Britain is more exhausted, this country affords them the easiest means of doing it.

Armies may be maintained here for one third of the expense that Britain lays out upon hers. This France has experienced. Though her affairs were not perhaps managed with the strictest economy, though her bills were extremely low, her supplies cost at least one third less than the British paid at New York, without taking into account the hire of transports, the seamen employed, paid, and fed in that service, and the number of them that fell into our hands. Be persuaded yourself, and endeavor to persuade others, that if this is a war of finance, which all modern wars are, Britain is most vulnerable in America.

I congratulate you upon the important success of our aims in South Carolina and Virginia, of which I enclose you official accounts. On the returns you will remark a number of British American nominal regiments. These were recruiting in Virginia and North Carolina, and their success will show the truth of what Britain advances with respect to the number of her partisans in America. I will venture to say, that with similar advantages, their recruiting parties would have been more successful in any country in Europe. Besides the troops mentioned in the returns, the enemy lost during the siege near two thousand negroes. Previous to the surrender, they had a naval engagement with the Count de Gra.s.se. The Terrible, a British seventyfour, was burnt, so that our affairs here stand upon the most respectable footing imaginable.--[Upwards of thirty lines follow interspersed with a cypher, the key to which is not to be found.]

But this is a delicate subject, and I quit it till I am more fully acquainted with the views of Congress thereon, for I confess to you, that the sentiments I have hazarded are rather my own, than any that I know to be theirs, and should weigh accordingly with you. The provision trade with the Havana being very considerable and important to Spain, while she has fleets and armies to maintain there, it might be proper to suggest to the Spanish Ministry the advantage of allowing small convoys of frigates, which would enable us to carry it on in vessels of greater burden, and by that means diminish the expense of freight and insurance, both of which, eventually, fall upon Spain. A few frigates would answer the purpose, as the stations of the enemy"s ships are almost always known on this coast, and, indeed, they seldom have any out but frigates cruising singly.

Another thought strikes me, which, perhaps, if digested, might be ripened into a plan advantageous to France, Spain, and America. While France keeps an army here, she must draw bills, or export money. She has, for the most part, preferred the former, at the loss of forty per cent discount. The money of Spain is lodged at the Havana, and cannot be brought to Europe without great hazard; whereas the risk of sending it here under convoy is extremely small. It may be vested in European bills to such advantage, as to pay the whole expense of transportation, and even an interest, till the bills are negotiated in Europe. This plan affords France a market for her bills, Spain a cheap and easy way of bringing her money home, and America a circulating medium, which enables her to tax with advantage.

The enclosed act of Congress informs you of the appointment of Mr Hanson, of Maryland, to the Presidentship.

I shall write very frequently to you, and shall in return expect that you will omit no opportunity of letting me hear from you. A Court kalendar, if one is printed with you, with notes of your own thereon, might be of some service to us. I shall use our private cypher, as corrected by that sent by Mr Toscan, till you receive the one transmitted by Mr Thomson, in which case, as it is less troublesome, be pleased to use that, if you are sure it came safe.

I am, dear Sir, with the sincerest regard and esteem, &c.

ROBERT R. LIVINGSTON.

ROBERT R. LIVINGSTON TO JOHN JAY.

Philadelphia, November 28th, 1781.

Dear Sir,

I wrote so fully to you not long since, that I should not trouble you at this time, if I had not determined to omit no opportunity of letting you hear from this side of the water, and enabling you at all times to meet any falsehood the enemy may find it politic to publish.

Since the capture of Cornwallis, nothing very material has happened.

The ravaging parties on the northern frontiers have been defeated with great loss by the militia. The armies have taken their stations for the winter quarters; the French, in Virginia and Maryland; our troops, on the Hudson, excepting some detachments under General St Clair, destined to reinforce General Greene. They have orders to take Wilmington in their way, where the enemy have about six hundred men; it is probable they will not wait the attack. General Greene will have men enough to shut up the enemy, but not to force their strong holds.

Want of money cramps all our exertions, and prevents our making a glorious winter campaign. The enemy are all shut up on two or three points of land, which is all they possess of the immense country they hope to conquer; and even these they hold by a very precarious tenure.

Disaffection, which has languished for some time past, died when Cornwallis surrendered.

Congress are occupied in taking measures for an active campaign; and they feel themselves satisfied with everything both at home and abroad.

Congress have dissolved Mr Adams"s powers to make a treaty of commerce with Great Britain; and, as you know, joined Dr Franklin and Mr Laurens in his other commission, if England should at length be wise enough to wish for peace.

The Marquis de Lafayette is the bearer of this. He has promised to convey it with safety to you, and to correspond with you in such a manner as to enable you to avail yourself of the knowledge which he has acquired, that may be of use to you. The resolves of Congress, of which I enclose a copy, show their sense on this subject, and the confidence which they very justly repose in him. His Aid waits for this. Adieu my dear Sir.

Believe me to be, with the highest respect and esteem, &c.

ROBERT R. LIVINGSTON.

END OF THE SEVENTH VOLUME.

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